Clime Capital Announces 82.25 Cents Pre-Tax NTA and Over 13% Gross Portfolio Return for FY26

Clime Capital’s Pre-Tax NTA of 82.25 Cents as of 30 June 2026 and Shareholder Implications

The company’s estimated pre-tax net tangible assets per share of 82.25 cents as at 30 June 2026 is an unaudited, cum-dividend figure marking the end of the financial year. On a post-tax basis, this estimate rises to approximately 84.0 cents per share, reflecting a slightly favourable tax treatment of unrealised portfolio positions. Both figures remain subject to adjustment upon finalisation of audited year-end accounts.

The underlying gross portfolio value was about $156.3 million at 30 June 2026. For investors in listed investment companies, NTA figures are critical for evaluating whether shares trade at a premium or discount to asset value. With a market price of 68.5 cents noted in the update, CAM shares are trading at a discount to both pre- and post-tax NTA estimates, a metric often monitored by LIC investors as a potential value indicator.

Declared June Quarter Dividend of 1.35 Cents Per Share with 50% Franking

Clime Capital declared a June quarter dividend of 1.35 cents per share, 50% franked. The ex-dividend date was 1 July 2026, entitling shareholders on record that day to the dividend payable on 24 July 2026. The 50% franking credit provides eligible Australian resident shareholders with a partial tax offset, which may reduce their personal tax liability depending on individual circumstances.

The company highlighted a gross annual yield, including franking credits, of approximately 9.5% based on the current market price of 68.5 cents per share. This yield is significant in the prevailing interest rate environment and serves as an important benchmark for income-focused investors assessing LICs. Additionally, the company noted that its CAMG notes—a separate listed debt instrument—offer a 6.5% yield on the $1.00 issue price, with monthly interest payments, providing an alternative income source for investors seeking regular cash flow.

Equity Portfolio Outperforms ASX in June with 3% Gross Return Versus Market’s 0.6%

Clime Capital’s equity portfolio, representing roughly 60% of gross assets, generated a 3% gross return in June 2026, outperforming the broader market’s 0.6% return. The company attributes this outperformance to value-driven stock selection, active portfolio management, and consistent income from non-equity holdings.

This monthly gain contributed to a total gross portfolio return exceeding 13% for FY26, surpassing dividend and note interest payments made during the year. The company also stated that the CAM pre-tax dividend yield exceeds the ASX yield by 5%, underscoring the portfolio’s income advantage relative to passive market exposure. These results are unaudited and reported by the company.

Realised Gains from Partial Sales of Blue-Chip Holdings Including BHP, NAB, RIO, and WBC

In June, the portfolio manager booked realised profits through partial sales of several prominent ASX-listed stocks, including Aurizon Holdings (AZJ), APA Group (APA), Dreadnought Resources (DBL), BHP Group (BHP), National Australia Bank (NAB), nib Holdings (NHF), Rio Tinto (RIO), Westpac Banking Corporation (WBC), Woolworths Group (WOW), Coles Group (COL), and Ramsay Health Care (RHC). The update did not specify quantities sold or profit amounts realized.

This approach of selectively trimming positions across large- and mid-cap stocks aligns with a strategy of locking in gains while maintaining exposure, characteristic of actively managed LICs balancing capital growth with dividend funding.

New Investments in 360, VNT, and MFG Alongside Additional Purchases in WES, RMD, and Others

Simultaneously with profit-taking, the manager increased holdings in Aristocrat Leisure (ALL), Bank of Queensland (BOQ), Computershare (CPU), Jumbo Interactive (JIN), Premier Investments (PMV), Ricoh (RIC), ResMed (RMD), Smartgroup (SIQ), Wesfarmers (WES), and Westgold Resources (WGX). The update did not disclose the scale of these additions.

Three new positions were initiated in June: 360 Capital Group (360), Ventia Services Group (VNT), and Magellan Financial Group (MFG). These additions across diverse sectors—financial services, infrastructure, and investment management—reflect a strategy to enhance diversification and manage risk amid anticipated equity price volatility. The update did not elaborate on the rationale for each new holding beyond this context.

Portfolio Expansion Strategy Targets Stagflation Risk and Anticipated Reporting Season Volatility

The update emphasizes that expanding the number of equity holdings is a deliberate risk management tactic to address potential equity price volatility. The manager identified stagflation risk—persistently high inflation combined with slowing economic growth—as a significant challenge for equity valuations. This broader portfolio diversification is a defensive measure rather than a fundamental change in investment philosophy.

Looking forward, the manager expects the upcoming August reporting season for Australian companies with June year-ends to increase market price volatility. To prepare, the company is maintaining an elevated cash balance of about $17 million, representing a substantial portion of the $156.3 million gross portfolio value. This liquidity provides flexibility to deploy capital opportunistically if reporting season results cause price dislocations.

Maintaining $17 Million Cash Reserve and Pursuing Corporate Debt and Hybrids Targeting 8%+ Returns

Beyond equities, Clime Capital is focusing on income-generating assets such as corporate debt, credit paper, and hybrid securities aiming for returns of 8% or higher. This reflects the current credit market environment offering attractive yields relative to historical levels and indicates a strategy to supplement equity returns with more stable, contractual income streams.

The $17 million cash reserve serves both as a buffer against reporting season volatility and as dry powder to seize opportunities in corporate debt or hybrid instruments meeting the targeted return threshold. This balanced approach highlights the manager’s caution regarding near-term equity risks while seeking income-generating alternatives.

Active Buyback Program Returns Approximately $0.59 Million to Shareholders Since 1 June 2026

Clime Capital confirmed its on-market buyback program remains active, having repurchased and cancelled approximately $0.59 million of CAM shares and CAMG notes combined since 1 June 2026. Such buybacks are a capital management tool that can enhance value for remaining shareholders by reducing issued securities and potentially increasing NTA per share, especially when shares trade at a discount to NTA.

Although modest relative to total portfolio size, this buyback activity signals management’s confidence in the portfolio’s underlying value compared to market prices. The update did not disclose the breakdown between CAM shares and CAMG notes repurchased, nor any target size or end date for the buyback program.

CAMG Note Holders Receive 6.5% Yield with Monthly Interest as Unlisted Investments Cover Interest Costs

Clime Capital’s capital structure includes ordinary equity (CAM shares) and listed debt instruments (CAMG notes). The CAMG notes yield 6.5% on their $1.00 issue price, with monthly interest payments—appealing to investors seeking consistent cash income outside the quarterly dividend cycle. The update did not provide details on the outstanding face value of CAMG notes.

Unlisted investments within the portfolio performed as expected, generating cash income exceeding the interest payments on convertible notes. This surplus income contributes positively to the portfolio’s overall income, benefiting both equity holders through dividend funding and note holders by supporting payment security.

Clime Capital Concludes FY26 with Over 13% Gross Return and Key Metrics for Investors

As FY26 closes, Clime Capital’s June update portrays a portfolio that has skillfully navigated market volatility, delivering a gross portfolio return exceeding 13% amid ongoing stagflation concerns. Active equity management, income from unlisted assets, and targeted credit allocations have enabled the company to meet dividend and interest obligations while growing NTA.

Investors should watch for the final audited NTA upon year-end account completion, deployment of the $17 million cash reserve during and after reporting season, progress of the buyback program, and success in sourcing corporate debt and hybrid securities yielding 8% or more. The upcoming dividend payment on 24 July 2026 will also be a key date for income-focused shareholders. The immediate market reaction to this update was not evident from available information.