SunGard Apologies for BNY Mellon Fund Pricing Glitch

SunGard has issued an apology to BNY Mellon for a computer glitch which affected the pricing of U.S. funds worth billions of dollars.

The SunGard InvestOne fund accounting system used by BNY Mellon saw a glitch earlier this week, preventing the custodian from generating net asset values (NAV) for its mutual fund and exchange traded fund (ETF) clients.

“While we are confident that no data was lost as a result of the incident, calculation and processing of net asset values (NAVs) of certain mutual funds and ETFs was disrupted,” SunGard states.

It says the issue was caused by an “unforeseen complication” resulting from an operating system change performed by SunGard.

The glitch caused panic amongst its fund manager clients, who feared their funds may have been traded at inaccurate prices during a week of high market volatility. Earlier this week, fund manager First Trust Advisors said the NAV of some of its funds contained errors greater than 1%.

“We at SunGard apologize to BNY Mellon for the adverse impact this unfortunate incident has had on its operations and clients,” says Russ Fradin, SunGard president in the statement.

BNY Mellon updated clients on Friday morning, explaining it was able to generate NAVs as of August 26 for most of its ETFs, however mutual fund NAV has been delayed.