[ISN] BUG software error causing mutual fund problem

From: mea culpa (jerichot_private)
Date: Thu Oct 29 1998 - 15:39:11 PST

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    Forwarded From: 7Pillars Partners <partnerst_private>
    Software bug causing mutual fund errors
    NEW YORK (Reuters) - A software bug at the National Association of
    Securities Dealers is causing the release of incorrect information on the
    daily changes in some mutual funds' net-asset values, the Wall Street
    Journal reported Thursday. 
    The problem, which developed last week with the introduction of a new
    mutual-fund quotation system at the Nasdaq Stock Market, is affecting the
    data for as many as a few hundred funds, Nasdaq officials told the
    The report said the glitch is affecting the net-asset-value changes
    transmitted to some newspapers, including the Journal itself. 
    Fund performance figures and the figure reported as the net-asset value
    aren't affected by the software problem, the report noted. 
    The defect may result in the transmission of incorrect information about
    the daily change in a fund's net-asset value, the paper said. 
    Gregor Bailar, chief information officer at the NASD, said the error hits
    funds that change their net-asset-value figures more than once during the
    day, the report said. 
    Usually, mutual funds report their net-asset values to the NASD by about
    5:30 p.m. EST, which then transmits the information to news media via
    fund-information firms, the report said. 
    When funds change their information more than once throughout the day,
    however, Nasdaq software inadvertently deletes the net-asset change from
    the previous day, the paper said. 
    Thus several funds reported various news outlets as having no change in
    net-asset value from the previous day may actually have had a change, the
    report said. 
    Nasdaq officials told the Journal that 200 to 500 funds each day may be
    affected by the glitch. 
    Vanguard Group, Malvern, Pa., said several of its funds including a
    Standard & Poor's 500 index fund and at least one actively managed fund
    have been incorrectly reported with flat net-asset value changes in recent
    days, the report said. 
    And Fidelity Investments' Destiny I and Destiny II funds also were
    incorrectly transmitted Wednesday with a net-asset value change of zero, a
    spokesman for the fund family said, according to the report. 
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