Clime Investment Management believes its FY25 operating costs will be “substantially lower” after identifying $1 million per annum in savings from the Madison divestment.
The firm announced in June that it had sold 100 per cent of Madison Financial Group to advice licensee Infocus, consisting of 54 authorised representatives across 32 financial advisory practices. This increased Infocus’ adviser number to more than 200.
Clime said instead that it would streamline its operations to focus on funds management and private wealth.
Following the divestment, its funds under advice were $984 million at the end of June 2024 which included Clime Private Wealth and ProActive Portfolios, a separately managed account offering. Funds under management and mandates were $1.5 billion.
In an update, the firm said it has now identified additional cost savings that will occur from the demerger.
“These savings are expected to reduce operating costs by approximately $1 million per annum. As we continue to refocus on funds management, the company expects further cost savings to be identified, a portion of which we intend to reinvest into distribution and client service support.
“The net result of these total initiatives is that Clime now expects FY25 operating costs to be substantially lower than in FY24.”
A second consequence of the Madison exit was the firm announced the exit of Simon Dutton who had worked as the firm’s group head of risk. Clime said Dutton’s role is “no longer required owing to a reduction in business complexity post divestment of Madison Financial Group”.
With a greater focus on funds management, Clime announced it has appointed Steve Lambeth as a portfolio manager who will report to chief investment officer Will Rigall.
Lambeth joins the firm from Bennelong Long Short Equity Management, where he worked for almost a decade as a senior investment analyst. Prior to this, he held analyst roles at JCP Investment Partners and Wallara Asset Management.
Finally, it has secured an investment management mandate for Clearwater, a multi-manager fund established and supported by the Victorian Financial Planning Group.
“Clime secured an investment management mandate for Clearwater. We are pleased to advise that final contracts have been signed for a minimum three years on terms that are expected to deliver revenue in excess of $0.5 million per annum.”
