BNY Mellon glitch roiled pricing on U.S. funds with $404 billion in assets

[August 29, 2015]  By Tim McLaughlin
 
 (Reuters) - BNY Mellon Corp's <BK.N> computer glitch this week has disrupted pricing on nearly 5 percent of U.S. mutual funds and exchange-traded funds with about $404 billion in assets, according to data from Morningstar Inc and Lipper Inc.

On Thursday, for example, 1,308 mutual funds and ETFs were missing performance figures, or 4.5 percent of the 28,812 funds that have net asset value calculations, according to Morningstar and Lipper. Those funds had $404.4 billion in assets under management, Morningstar said on Friday.

Problems with fund pricing escalated throughout the week, increasing nearly nine-fold between Monday and Thursday, according to Morningstar's latest figures. BNY Mellon said on Friday it still does not know when the problems with mutual fund pricing will be fixed.

An accounting system BNY Mellon uses to calculate fund values collapsed last weekend during an upgrade conducted by financial services software provider SunGard.

In an update on Friday morning, BNY Mellon said it continues to experience performance problems with SunGard's InvestOne system. Processing the Wednesday prices for mutual funds, for example, continues to be delayed.

"We do not have an ETA for completion at this time," BNY Mellon said in an update on its website. "We will continue to work with our clients and utilize the agreed upon fair value and other contingency measures until normal processing can resume."

(Reporting By Tim McLaughlin; Editing by Chizu Nomiyama and Meredith Mazzilli)

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