Clime Lifts Q1 FY27 Funds Under Management 9.4% to $2.74 Billion

Q1 FY27 Highlights: Clime lifts total FUM&A 9.4% to $2.74 billion

In its September quarter update for Q1 FY27, Clime Investment Management Limited (ASX: CIW) recorded total funds under management and advice (FUM&A) of $2,738 million at 30 September 2026. That was up $236 million, or 9.4%, from $2,502 million at 30 June 2026 (unaudited).

IMAs and Direct FUM&A rose 24.1%, while Asset Consulting and mandates increased 12.6%. Total FUMA increased during the quarter due to an increase in asset consulting and mandates.

Separately Managed Accounts (SMAs) fell 17.2%. The company attributed the decline to restrictions on onboarding new clients through third-party platforms.

The update also summarised FY26 results and addressed the delayed FY26 audit. For investors, the quarter’s growth came in direct and mandate-based relationships, which Clime describes as its strategic preference for providing greater flexibility, stronger client engagement and more sustainable margins.

FUM&A by segment

The table below reproduces the unaudited figures from the update.

Clime stated that it:

• Directly manages client portfolios of $829 million.
• Holds strategic investments in advisory groups who advise or manage portfolios of $1.9 billion.

FY26 results: profit up as the business simplifies

Clime’s FY26 results, previously announced to the ASX on 16 October 2026, showed profit growth despite lower revenue. Key figures from the update:

• Total Operating Revenue: $7.57 million, down 17% from $9.1 million in FY25. The company described the decline as deliberate, reflecting corporate restructuring, divested or closed fund structures, and corporate advisory fees falling to $0.5 million from $2.5 million.
• Other Income: $3.94 million, generated through strategic transactions including the divestment of the Clime International and All Cap Funds and a trimming of its equity stake in James Street Wealth.
• Profit Before Tax (Continuing Operations): $1.40 million, up 47%.
• Net Profit After Tax: $0.80 million, up 57% from $510,676.
• Net Tangible Assets: $17.51 million (equivalent to 21.3 cents per share).
• Performance Fees: $2.29 million, compared with minimal fees in FY25.

Investment performance

Under Clime’s investment management direction, the listed investment company Clime Capital Limited (ASX: CAM) outperformed the general equity market index by 12.0% in FY26. Its Gross Portfolio Return was 17.7% before fees, against 5.7% for the S&P/ASX All Ordinaries Benchmark.

In equity portfolios, Clime said the result reflected a more disciplined application of its established intrinsic value methodology. Multi-asset portfolios benefited from investments made over the past year in strengthening the internal investment team and its capabilities.

Strategic transformation and why audit valuations matter

Simplified, mandate-led model

Clime reported that it has substantially completed its transformation into a focused investment manager centred on IMAs, CAM, and exclusive investment opportunities for valued clients.

The $6.5 million advice network transfer to a practitioner-led group, which left Clime with a 10% stake and options to reach 25%, was a central step in moving the company away from advice and toward investment management and mandates.

Its YouTube channel reached 6,630 subscribers, growing 57% in 60 days, with more than 890,000 cumulative views and recent programs exceeding 40,000 views. Clime said weekly programs reach a much larger audience without paid advertising or direct product promotion, building on founder John Abernethy’s approach of sharing investment insights.

Following the simplification and digital audience growth, Clime is expanding distribution through the appointment of a Melbourne-based Key Account Manager.

Understanding valuation scrutiny of unlisted assets

Unlisted and private credit assets do not trade on an exchange, so they have no daily market price. Auditors therefore look for independent valuation evidence to support the values reported.

Clime cited increased regulatory scrutiny of private credit and unlisted asset valuations in explaining its audit delay.

Audit delay and Board Review

Clime’s auditor requested additional independent valuation evidence specifically related to Clime Capital Limited (ASX: CAM). That evidence could not be obtained before the 30 September reporting deadline.

Clime has initiated a board-led review to investigate and resolve the issues that delayed the audit. Work by independent consultants and valuers reviewing Clime’s private credit investments and unlisted assets is well progressed.

What happens next for Clime

The update set out the following forward items:

1. Board Review completion: The update gave no completion date. Payment of the FY26 performance fee ($2.29 million) to Clime has been deferred until the review is completed.
2. FY26 final dividend: Subject to the outcomes of the Board Review, the intention remains to declare a fully franked final dividend of 0.50 cents per share.
3. FY27 priorities: Clime said FY27 will be focused on:
   • expanding Asset Consulting mandates;
   • growing recurring portfolio management revenue;
   • integrating strategic partnerships;
   • completing remaining structural initiatives;
   • maintaining disciplined capital allocation; and
   • continuing to improve investment performance.

With the structural transformation largely complete, Clime described itself as a simplified mandate-led investment and asset consulting business focused on expanding recurring mandate revenue.

Investors exploring how the restructuring unfolded can read our detailed coverage of Clime’s four-part restructuring and earlier dividend, which sets out the retail fund exits, the James Street stake sale, the private wealth consolidation and the SMA/MDA joint venture term sheet.

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