Clime Investment Management has announced group funds under management (FUM) grew to $1.6 billion, up 21.5 per cent in the last quarter of financial year 2024.
In an ASX announcement on Friday, the firm said it has “refocused on the core business of funds and individual account management” following the successful offloading of the Madison financial services licence to rival licensee Infocus in June.
“The recent sale of Madison offers an opportunity to reflect on the market, the regulatory environment, our core competencies, and the strategic choices before us,” it said.
Over the last quarter, Clime confirmed it was able to secure an additional $60 million of inflows to the Clime Income Fund.
Moreover, it announced the investment management mandate for multi-manager fund Clearwater, established and supported by Victorian Financial Planning Group DMG, contributing $240 million.
“Combined, these two mandates are expected to deliver $0.8 million of annual recurring revenue in FY25,” the firm said.
Looking at funds under management, mandates and directed FUM were the biggest contributors to the latest quarterly results, growing 322 per cent. Positive growth was also observed from Clime’s managed funds (21.5 per cent) and separately managed accounts (8.8 per cent).
However, individually managed accounts and Clime Capital Limited lagged, falling 6.8 per cent and 2.6 per cent over the quarter.
Clime’s private wealth offering, meanwhile, saw funds under advice rise by 2 per cent.
Delving into its investment management, the firm identified “strong returns” achieved in the Clime All Cap Fund and the Clime Small Companies Fund, with the portfolios returning 15.40 per cent and 15.82 per cent, respectively, gross of fees and tax.
“The strong returns not only saw the group achieve performance fees in FY24 but supports the group strategy to achieve growth in funds under management in the year ahead,” Clime said.
Across its broader product suite, it described “strong momentum” with a doubling in FUM in the Clime Australian Income Fund to over $100 million and continued growth within its SMA products.
“Continued expansion in distribution across new platforms should support ongoing growth across our direct equity and multi-asset SMAs,” it said.
Last week, the firm announced the departure of its group CEO, Annick Donat, after a three-year tenure.
She initially joined Clime in 2020 as the former CEO of Madison Financial Group, which has been divested, and was named CEO of Clime the following year.
Donat will exit the firm on 31 July.
