The board of Clime Investment Management has announced an agreement to form an integrated separately managed account (SMA)/ managed discretionary account (MDA) business with Ralton.
Under the terms of the deal, Clime IM would transfer around $270 million of its funds under management (FUM) in the SMA/MDA sector to Ralton in exchange for an initial shareholding of 75% of Ralton.
According to the announcement made by Clime IM to the Australian Securities Exchange (ASX), on completion the combined managed account portfolio would stand at around $330 million of FUM.
The final equity ownership would be based with reference to the total combined FUM of Ralton and the economic contribution of the Clime managed accounts relative to the Ralton managed accounts.
There would also be a people move with Ralton chief investment officer, Will Riggall, becoming CIO of Clime IM.
Riggall said: “Bringing together the combined scale and capabilities of Ralton and Clime under one operating entity will enable the combined Clime investment team to provide superior outcomes to both advisers and clients across an expanded range of investment solutions.”
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