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M&G bond fund investors hit by income payment glitch
by Alex Steger on Aug 28, 2013 at 08:25
Fund group M&G has continued to be haunted by a glitch which resulted in 32,000 investors receiving more income than they were due earlier this year, according to reports.
The Daily Telegraph reported that in May, 32,000 investors in the M&G High Yield Corporate Bond fund were paid too much income and that the fund group had attempted to fix the issue by paying the investors less income in July.
However, according to the Telegraph, the July correction was not perfect and the fund group was forced to adjust its August payments, to put clients back where they should have been.
The paper quoted a letter which read: ‘Our initial analysis led us to believe the adjustment in July's payment was the only adjustment required. However further investigations identified a supplementary adjustment which will slightly inflate the income to be paid on August 31.'
There are around 56,000 investors in the £1.3 billion fund, which is managed by Stefan Isaacs, although the glitch only impacts investors with income rather than accumulation share classes.
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