Bank of New York Mellon Corp. said it aims to have a reliable fix by Monday for the system it uses to generate net asset values for mutual funds after the software broke down seven days earlier.
The technology, provided by SunGard Data Systems Inc., should be able to provide asset values for Friday by early Monday, Gerald Hassell, BNY Mellon’s chief executive officer, said on a conference call late Sunday from New York. Net asset values for Monday should be available by the end of the day or early Tuesday, the bank said.
BNY Mellon has been unable to provide pricing for certain mutual funds and exchange-traded funds since Aug. 24 after the software was corrupted during an upgrade, Hassell said on the call. The breakdown has prevented the bank from issuing net asset values, the equivalent of a closing price. The bank said 20 mutual fund companies and 26 exchange-traded fund providers experienced some pricing problems.
BNY Mellon, a custody bank, keeps records, tracks performance and lends securities for institutional investors and as of June 30 oversaw about $26.8 trillion in assets.
The technology breakdown left BNY Mellon unable to price more than 10 percent of U.S. ETFs. ETFs with more than $220 billion in market value have been affected, Bloomberg ETF analyst James Seyffart estimated last week.
The absence of accurate prices may have caused some investors to overpay for funds, Ben Johnson, director of global ETF research at Morningstar Inc., said last week.
SunGard, a financial software company with annual revenue of $2.8 billion, said in a statement Thursday that the incident was not caused by any external or unauthorized system access, and wasn’t related to market turmoil.