Bank of New York Mellon Corp., which has been plagued for the past week with computer problems that prevented it from providing prices for mutual funds and exchange-traded funds, said a new version of the technology has provided values for both through Friday.
Net asset values for Monday should be available by the end of the day or early Tuesday, BNY Mellon Chief Executive Officer Gerald Hassell said on a client conference call Sunday. The NAV is the rough equivalent of a fund’s share price.
The technology BNY Mellon used to calculate NAVs, provided by SunGard Data Systems Inc., broke down Aug. 24, affecting 20 mutual fund companies and 26 exchange-traded fund providers. Teams from the bank and SunGard have been working around the clock since the original failure, trying to supply the missing data.
“It has taken far longer than any of us would have expected,” Hassell said on the call.
Some fund companies have been calculating their own prices, and BNY Mellon said it worked with clients to calculate prices using alternative methods. Brian Shea, head of investment services at the bank, said that all funds were able to trade daily.
“We know of no broad-based or significant impact on the ability of our clients’ funds to trade,” Shea said on the call.
Prudential Investments, in a regulatory filing, said its funds were affected by the BNY Mellon problems. According to Prudential’s website, 38 mutual funds and two closed-end funds out of a total of 60 have had pricing issues since Aug. 24.
Fund companies including AdvisorShares Investments, Guggenheim Partners and Invesco PowerShares said that they had to correct closing prices for some of their ETFs. But they said market makers were able to calculate prices during the day to trade for investors efficiently. ETFs hold baskets of underlying securities and can be traded throughout the day on an exchange, like a stock. The trades were also settled within the regular timeframe.
“The ETFs were trading very efficiently,” Noah Hamman, CEO of AdvisorShares, said in a phone interview. “The market makers had the information they needed to know what was in the portfolios. The prices were right in line with what those final net asset values were calculated at.”
BNY Mellon, a custody bank, keeps records, tracks performance and lends securities for institutional investors. As of June 30, it had about $28.6 trillion under custody and administration, trailing only Boston-based State Street Corp.