This notification is to advise you that termination prices issued for the closure of the M&G European High Yield Bond Fund on 30 November 2019 were incorrect. These incorrect prices were used to price redemption trades on 30 November 2019 and were shown on deal confirmations on Distributor Online Daily Dealing reports produced on the evening of 30 November 2019.
Please do not use these prices in pricing any trades from 30 November or input them on your systems, instead please use the revised correct prices which are attached.
Please note the following key points;
- Prices made on 30 November 2019 for the closing share classes of the M&G European High Yield Bond Fund have been overstated by approximately 17%.
- Cash considerations reported for redemption trades in the fund at close of business on 30 November 2019 were therefore overstated by approximately 17%.
- These trades are being reworked today (02/12/2019) and revised prices and cash considerations will be shown on Distributor Online Daily Dealing reports by close of business today. Paper contract notes will be issued tomorrow and will show correct trade details.
- To accommodate the trade corrections new confirmations/contract notes will show the correct prices, cash and units but will be dated 02/12/2019 at 14:00.
- Settlements based on the revised correct prices will still occur on T+3 which is 4 December 2019. Any settlements for these trades which would usually be made via Calastone or CREST will be processed outside of these portals and directly paid to relevant bank accounts.
Please accept our apologies for any inconvenience this situation has caused. The error was a result of some misappropriated currency valuations on underlying assets. Additional controls have been introduced by M&G to ensure this does not happen in future.
Should you have any queries on this communication please see the contact details for M&G Charities by clicking here.