Peace talks for star wars

FPG Research and IPAC Securities have agreed to met face-to-face and talk about their battle over star ratings.

Thursday, May 28th 1998, 12:00AM

The two managed fund research houses have agreed to talks aimed at trying and broker peace in the on-going star wars ratings battle.
The talks, sponsored by the Investment Savings and Insurance Association (ISI), have come about following the association’s concern that having two managed fund rating systems with quite different methodologies, but the same "brand", will create investor confusion.
For instance Good Returns has come across one fund which has five stars under FPG’s system which combines quantitative and qualitative factors, but gets just one star under the IPAC system which is based on straight quantitative factors.

The ISI became involved in the star wars spat after it received a complaint from FPG about IPAC’s system (both companies are associate members of the association).
Chief executive Roger Gill says the association isn’t taking sides on the issue, rather it is facilitating face-to-face talks.
‘’Anything that comes from this will be the results of the two of them reaching consensus on the issues,’’ he says.
FPG Research communications manager Deirdre Keown says the preferred option is to sort the issue out by mediation, however FPG is keeping open the option of legal action.
She says the company is still talking to its lawyers about possible action.
"We are continuing to consult our lawyers," she says. "At the moment we are not going to haul them (IPAC) into court, but it’s a last option."
Star wars is a major concern for FPG as it has spent three years developing the ratings and all its research work "floats through" to the star system.
She says FPG is committed to the negotiating process and hasn’t abandoned efforts to sort something out.
IPAC general manager David van Schaardenburg says; "we are prepared to have discussions. Whether it moves into mediation is a different issue."
The talks are due to be held on June 12.

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