Clime Investment Management has moved closer to its objective of becoming a boutique funds management business with the purchase of a Melbourne-based high net wealth advisory firm.
The listed financial services group informed the market of its purchase of an unnamed advisory firm yesterday.
Clime managing director John Abernethy was unavailable to comment on the name of the Melbourne firm.
Clime intends to merge the advice firm, which has more than $50 million in funds under management (FUM), with its existing $80 million individually managed account (IMA) business to create a $130 million IMA business, a company statement said.
"The merger of Clime's IMA business with its Melbourne high net worth advisory business represents another important step towards [Clime's] objective of building a profitable boutique integrated funds management business," the statement said.
"A clear focus for the business is the management of equity portfolios of self-managed superannuation funds for middle and high net worth individuals, charitable trusts and equity portfolios for family offices."
Under the terms of the agreement, the purchase will involve payment of cash and Clime shares.
The transaction and the company's FUM growth is expected to take its FUM to more than $220 million by the end of the half year, the statement said.
