M&G Investments has written to investors in its £1.3bn High Yield Corporate Bond fund to apologise for an accounting error which resulted in incorrect income payments in May and July.
Investors taking a monthly income from the fund - which is managed by Stefan Isaacs - were overpaid in May due to an “individual error” in allocating money from the maturity of a bond within the fund’s portfolio, a spokesperson for M&G said.
The monthly payout was reduced in July following a “thorough investigation” by the company, but August payouts at the end of this month will have to be adjusted upwards slightly.
The spokesperson said M&G’s investigation into the error was “ongoing” but emphasised that the company was confident that, having identified the error, it would not be repeated.
“In aggregate clients have ended up with the same amount of money as they would have recieved if the error had not happened,” the spokesperson added.
