Bank of New York Mellon Corp. said Monday morning that it had finished working through a backlog of mutual and exchange-traded fund-pricing issues before the market opened, ending a weeklong struggle by the company to provide accurate asset values to about 1,200 funds.

Teams at BNY Mellon worked through the night to set net asset values through Friday, Aug. 28, for funds that have been affected for the past week by a software problem at the bank's third-party vendor, SunGard Data Systems Inc., the bank said.

The software problem has roiled the asset-management industry, which relies on BNY Mellon and others to accurately price securities in its funds, a crucial data point for investors.

BNY Mellon had said over the weekend that about 46 mutual-fund and exchange-traded fund companies had been affected by the software problem. A representative for SunGard declined to comment.

In a Sunday night conference call, BNY Mellon Chairman and Chief Executive Gerald Hassell told clients that he expected the firm to set net asset values for all ETFs through Friday by Monday's market open, but stopped short of promising that mutual-fund companies' values would also be set, saying only that it would happen sometime Monday morning.

The bank said it completed both sets of funds' values before the 9:30 a.m. trading start.

Resolving the problem "has taken far longer than any of us would have expected," Mr. Hassell said on the call.

The episode has focused attention on the role of SunGard, which is owned by several private-equity firms that paid about $11.4 billion for the financial software company in 2005. SunGard's product, InvestOne, has been in use by BNY Mellon since at least the late 1990s, according to a regulatory filing.

SunGard's owners had filed with the Securities and Exchange Commission for an initial public offering but those plans were ended in August when Fidelity National Information Services Inc. agreed to buy SunGard for $5.1 billion in cash and stock. Fidelity National Information Services declined to comment.

Bank of New York Mellon's problems stemmed from a SunGard accounting system that was "corrupted" after an upgrade, Sungard said in a statement last week. SunGard previously warned potential public investors in its IPO prospectus about the risks of updating software.

"Our products are very complex software systems that are regularly updated," the company said in its prospectus. "No matter how careful the design and development, complex software often contains errors and defects when first introduced and when major new updates or enhancements are released."

The company said that although it has "taken steps to prevent system failures and have backup systems," these mechanisms "may not prevent an interruption of services." Such outages could cause it to lose clients and revenue, hurt its reputation, and incur repair costs, even beyond what its insurance covers, according to the IPO prospectus.

Like many of SunGard's systems, InvestOne has evolved over the years through rounds of upgrades to the product. In recent years SunGard has made InvestOne products accessible remotely, the company has said.

It isn't clear how big of a business InvestOne is for SunGard, but the company said in its IPO prospectus that moving asset managers to "cloud" software has been a boost for growth. Cloud-related financial services revenue was up 2% in 2014, as compared with flat revenue for its traditional financial-software business.

Financial services, including asset management, made up over 90% of SunGard's total revenue of $671 million in the first quarter of 2015. Currently, InvestOne is used by institutions, retail and alternative funds with $28 trillion in investment assets, according to the company.

Write to Kirsten Grind at kirsten.grind@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

August 31, 2015 20:05 ET (00:05 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
Goldman Sachs (NYSE:GS)
Historical Stock Chart
From Aug 2024 to Sep 2024 Click Here for more Goldman Sachs Charts.
Goldman Sachs (NYSE:GS)
Historical Stock Chart
From Sep 2023 to Sep 2024 Click Here for more Goldman Sachs Charts.