BNY Mellon Coping After NAV Software Glitch Affects Dozens of Funds
Crucial calculation errors began last week.

The major custodian first suffered an outage on a day of extraordinary trading last Monday following the collapse of the Chinese equities market, though increased volatility and stress on the global markets was not to blame. Rather, BNY's US installation of the SunGard InvestOne fund accounting platform had become corrupted, causing inaccurate daily value calculation.
According to a report this morning from the Financial Times, at least 20 mutual funds and 26 ETF families were affected last week when a software upgrade from SunGard malfunctioned. Among those funds hit were the widely-used Invesco PowerShares ETF family; meanwhile CNBC noted last Wednesday that Prudential, Federated Investors and Guggenheim Partners funds were also affected.
'Far Longer Than Expected'
The problem, BNY CEO Gerald Hassell said in a conference call with clients this weekend, has touched 60 total clients and approximately 1,200 fund structures. The CEO also noted that SunGard's backup system was "concurrently corrupted" at the time of the outage, and the root cause still isn't known.
Alternative system-generated NAVs for affected funds are now in place for Tuesday through Thursday, according to the company, and BNY expects all but one client to have Friday's values by trading today.
"Our focus from the outset has been on working closely with SunGard to restore their platform to improve reliability and performance," said Hassell. "It has taken far longer than any of us would have expected."
The firm says it will engage an independent third party to determine the cause and is working to stabilize its InvestOne environment to avoid future lapses. The US Securities and Exchange Commission is also investigating.
Waters will continue covering the event as more details unfold.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
LSEG’s private funds platform, Microsoft’s new datacenter, and more
The Waters Cooler: New private markets solutions, M&A activity, and a sprinkle of DLT in this week’s news roundup.
BlueMatrix acquires FactSet’s RMS Partners platform
This is the third acquisition BlueMatrix has made this year.
Waters Wavelength Ep. 331: Cresting Wave’s Bill Murphy
Bill Murphy, Blackstone’s former CTO, joins to discuss that much-discussed MIT study on AI projects failing and factors executives should consider as the technology continues to evolves.
FactSet adds MarketAxess CP+ data, LSEG files dismissal, BNY’s new AI lab, and more
The Waters Cooler: Synthetic data for LLM training, Dora confusion, GenAI’s ‘blind spots,’ and our 9/11 remembrance in this week’s news roundup.
Chief investment officers persist with GenAI tools despite ‘blind spots’
Trading heads from JP Morgan, UBS, and M&G Investments explained why their firms were bullish on GenAI, even as “replicability and reproducibility” challenges persist.
Wall Street hesitates on synthetic data as AI push gathers steam
Deutsche Bank and JP Morgan have differing opinions on the use of synthetic data to train LLMs.
A Q&A with H2O’s tech chief on reducing GenAI noise
Timothée Consigny says the key to GenAI experimentation rests in leveraging the expertise of portfolio managers “to curate smaller and more relevant datasets.”
Etrading wins UK bond tape, R3 debuts new lab, TNS buys Radianz, and more
The Waters Cooler: The Swiss release an LLM, overnight trading strays further from reach, and the private markets frenzy continues in this week’s news roundup.