SunGard has moved to reassure investors about its financial strength in the wake of a decision by OppenheimerFunds to terminate a long-standing contract with SunGard Investor Accounting Systems for the Investar*One system.
OppenheimerFunds had selected Investar*One in 1998 principally to solve Y2K compliance issues on its mutual fund record-keeping system. SunGard now accepts that it "underestimated the customisation effort" needed to make the product suitable for OppenheimerFunds' business. When the project extended well into 1999, the conversion was postponed and OppenheimerFunds made its existing mutual fund record keeping system Y2K compliant.
SunGard officials state that the termination of the project is not expected to have a material impact on the financial results or financial position of SunGard.
Both companies approved the termination, states SunGard, released each other of all further obligations without any payment of money by either party and are cooperating to wind down the project.