You may well have read the headline stories or heard on the radio or television about the difficulties that M&G, together with Aberdeen property funds have in meeting liquidity demands and redemptions.

We have been monitoring the situation very carefully for a number of years, so you will not be surprised to hear that we are not invested in either of these funds within our models, as we withdrew our exposure to them some time ago when we could see the difficulties that they could get into.

We have a very limited exposure to property funds as part of an overall investment strategy. The funds that we hold are small and well targeted in areas of the market that we think will remain liquid. Today one of our small funds confirmed that they retain over 14% of the fund in cash.

Therefore, in the greater scheme of things and on the basis that we always run KMG funds with huge diversification and reasonable liquidity, we do not believe that our KMG clients will be compromised by the current dilemmas facing major property fund holdings such as M&G.

KMG remain forward thinking and with preplanning and our dynamic approach to asset allocation we continue to provide you with peace of mind and a happy Christmas!

Patrick McIntosh