View more on these topics

M&G alters bond fund income payments after accounting errors


M&G has been forced to adjust income to clients for the second consecutive month following accounting errors which caused it to overpay investors in its £1.3bn High Yield Corporate Bond Fund.

Around 32,000 clients were overpaid in May and while July’s income payments were reduced to account for this, an M&G investigation into the error found that it had decreased income payments by too much.

As a result the next income payments, due on 31 August, will be slightly higher than normal, with investors receiving around 20 per cent extra income.   

An M&G spokesman says: “We are continuing to speak to our clients and apologise for the errors we have made. We are working very hard to ensure they are rectified and not repeated. This involves tidying up our systems but we are sincerely sorry.”

Quainton Hills Financial Planning director Gordon Bowden says: “If you make a mistake once then it is excusable, if you make it twice it starts to look like a habit. You would have hoped M&G would have been a bit more thorough in its checking of payments when it originally realised the error.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm