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.”