An independent Australian fund manager, Clime Investment Management Ltd (ASX: CIW) on 15th April 2019, provided an update to its shareholders regarding the developments in March 2019 Quarter.
During the March 2019 quarter, the investment performance, as well as the funds under management across all investment portfolios managed by the company remained strong. There was an increase in the individual mandates by 4.6% and the managed funds by 4.1% over the quarter with investment inflows as well as market performance.
Assets Under Management (AUM)
The investment products and mandates of the company comprises of Managed Funds, Listed Investment Companies and Individually Managed Accounts. The gross balances across Clime’s investments as on 5th April 2019 was noted at $887 million.
At present, the FUM for Clime Individually Managed Accounts was noted as $428 million. This value was $409 million as at 30 June 2018. Similarly, the FUM for Listed Investment Companies was $134 million, i.e. remain unchanged since 30 June 2018. The Managed Funds and mandates increased from $312 million (as on 30 June 2018) to $325 million at present. Overall, the total FUM increased from $855 million as on 30 June 2018 to $887 million at present.
As per the December 2018 quarter update, a review of the investment performance was conducted in the March quarter, which led to the personnel changes in the investment team. Through this review, the approach taken by the company related to managing equity portfolios with an objective on well-defined risk/return parameter was refined.
Based on these team and process changes, the investment portfolios of Clime have been updated, so that refined investment philosophy of the company is reflected. This became the driving factor for the March 2019 quarter, delivering strong returns across all investment portfolios. Below is the list of portfolios that are outperforming their relevant indices for the financial year-to-date.
Australian Equity Strategies
- Clime Representative Australian Growth Individually Managed Account performed better than ASX200 Index.
- Clime Australian Value Fund outperformed All Ordinaries Index.
- Clime Smaller Companies Fund of Clime performed significantly better than the blended ASX Small Ordinaries and Emerging Companies indices.
International Equity Strategies
- Clime International Fund performing better than the MSCI World ex Aus Index.
Clime Representative Australian Income Individually Managed Account of Clime outperformed the RBA Cash Rate and additional 3% hurdle.
Clime Australian Income Fund performed better than the RBA Cash Rate and additional 3% hurdle.
The liquid capital of the company by the end of 31 March 2019 was $9.5 million.
The company aims to become an integrated wealth management business from an Australian equity manager, and it continues to move in the direction to achieve its goals. The strategy of the company includes delivering personalised private wealth advice, investment solutions, direct share research along with the SMSF Administration for high net worth as well as the sophisticated investors.
Based on the strategy, the Board of Clime is confident that once the strategy is successfully implemented, it will deliver higher earnings over time. This will be the outcome of strong client relationships in order to look for new opportunities, securing new clients as a result of fundamentally changing wealth management sector followed by the expansion of the distribution of group investment products to the financial adviser market.
CIW is currently priced at A$0.470 (As at 16 April 19, AEST 11:53 AM). CIW holds a market capitalisation of A$26.42 million and approximately 56.21 million outstanding shares.
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