An issue with a system used by Bank of New York Mellon is causing NAV challenges across the industry. The company explained Tuesday that “an issue with a SunGard system that has impacted a limited number of fund accounting clients and the processing of net asset values (NAVs) of certain mutual funds and ETFs.” An update issued yesterday explained that affected system became available on a limited basis late in the day on Tuesday and that “BNY Mellon was able to construct system-generated net asset values (NAVs) for Monday, August 24, 2015 for all affected funds. We worked through the night, but due to the limited capacity of the SunGard system, we have not yet been able to construct system-generated NAVs for Tuesday, August 25, 2015.” A Wall Street Journal article reported that “[b]y early afternoon Wednesday, some fund companies had received correct net asset values from Bank of New York Mellon and were trying to reconcile those numbers with what they had reported earlier in the week.” In the absence of the system-generated NAVs, funds relied on back-up accounting systems.
The NYSE released a notice reminding issuers that pricing errors causing a variation in the NAV of exchange traded products of greater than 1 percent are material and must result in a press release announcing the correct NAV. Several issuers released statements on the issue.