Clime Investment Management reports a strong half-year operating profit surge and proposes a fully franked interim dividend, while streamlining its business to target sophisticated investors.
- Operating profit rises 162% to $1.06 million before tax and depreciation
- Statutory pre-tax profit of $359,000 with a 0.3 cent fully franked interim dividend proposed
- Sale of International Fund and closure of subscale retail funds to simplify operations
- Funds under management and advice total approximately $1.55 billion
- Strategic pivot towards high-net-worth and sophisticated investors with enhanced technology and education initiatives
Strong Profit Growth Backed by Asset Sales
Clime Investment Management Limited (ASX: CIW) has delivered a notable turnaround in its financial performance for the half-year ended 31 December 2025. The company reported an operating profit of $1.061 million before tax, amortisation, and depreciation, a 162% improvement compared to the prior corresponding period. This uplift was largely driven by the previously announced gain on the sale of a retail client book, underscoring the benefits of recent portfolio rationalisation efforts.
Statutory pre-tax profit stood at $359,000, a significant recovery from a loss in the prior half-year. Reflecting this improved performance, Clime has proposed a fully franked interim dividend of 0.3 cents per share, signalling confidence in its cash flow and ongoing business stability.
Simplifying the Business to Focus on Core Strengths
In line with its strategic review, Clime is actively simplifying its product suite by divesting non-core assets. Notably, the company has agreed to sell its International Fund for $2 million in cash and has closed the Small Companies Fund and Income Fund due to their limited scale and commercial viability. This move reflects the challenges smaller retail funds face amid fee compression and rising compliance costs in a market dominated by large product manufacturers.
By shedding these subscale funds, Clime aims to concentrate resources on areas where it holds a competitive advantage and can deliver superior client outcomes. The company’s core business now encompasses funds under direct management, including separately managed accounts and listed investment companies, with total funds under management and advice (FUM&A) of approximately $1.55 billion.
Strategic Shift Towards High-Net-Worth and Sophisticated Investors
Clime’s strategic focus is increasingly directed at high-net-worth and sophisticated investors who value tailored portfolio construction and direct access to experienced investment professionals. The company highlights its integrated capabilities across portfolio management, private credit, listed equities, and balance sheet co-investments as well suited to this client segment.
Alongside this, Clime is investing in technology and digital infrastructure to launch a new retail offering centred on financial education and insights, without execution capabilities. This initiative aims to broaden investor engagement while maintaining a capital-light operating model, reflecting a modern approach to investor relations and market positioning.
Looking Ahead
While Clime has generated potential performance fees of $603,000 based on outperformance in the Clime Capital portfolio, these fees remain unrecognised pending final year-end results. The company’s disciplined capital allocation and focus on scalable, high-margin products position it well to enhance earnings quality over time.
Overall, Clime’s half-year results and strategic repositioning suggest a company intent on refining its business model to meet evolving market demands and investor expectations.
Bottom Line?
Clime’s pivot to high-net-worth clients and streamlined offerings set the stage for a more focused growth trajectory.
Questions in the middle?
- How will the new retail education platform impact Clime’s client acquisition and engagement?
- What are the prospects for recognising the potential $603,000 in performance fees this financial year?
- Could further divestments or fund closures be on the horizon as Clime sharpens its strategic focus?