BNY Mellon Fund Accounting Glitch Hits Mutual Funds

BNY Mellon has been unable to fix a computer glitch with its fund accounting platform, delaying how billions of dollars of assets are valued for some mutual funds.

BNY Mellon said in a statement on Wednesday night that its accounting system, which is run by SunGard, “continues to have system performance issues… Our teams are working through the night and will be providing system generated net asset values as soon as normal processing resumes.”

BNY Mellon uses the SunGard InvestOne platform, which is used by financial institutions managing more than $25 trillion in assets.

“SunGard is working to resolve these issues and we are in regular contact with SunGard to manage the situation and keep you informed,” BNY Mellon says.

The issue began over the weekend, in which its system to calculate the prices of clients mutual funds and exchange traded funds (ETFs) broke down, according to Reuters.

It said in a statement the system has resumed on a limited capacity but is still not fully operational, leaving the custodian with a backlog of funds to price.

Billions of dollars of fund assets were affected by the glitch, including those operated by Federated Investors, Guggenheim Investments, and First Trust Advisors, which the latter said in a statement the net asset value of some of its funds contained errors greater than 1%.

The computer glitch is latest setback for the world’s largest custodian bank.

In April, the London-branch of BNY Mellon was fined £126 million by the Financial Conduct Authority (FCA) for failing to comply with rules applying to safe custody assets and to client money.