Clime identifies $1m pa savings from Madison divestment

16 August 2024
| By Laura Dew |
image
image
expand image

Clime Investment Management believes its FY25 operating costs will be “substantially lower” after identifying $1 million per annum in savings from the Madison divestment. 

The firm announced in June that it had sold 100 per cent of Madison Financial Group to advice licensee Infocus, consisting of 54 authorised representatives across 32 financial advisory practices. This increased Infocus’ adviser number to more than 200. 

Clime said instead that it would streamline its operations to focus on funds management and private wealth. 

Following the divestment, its funds under advice were $984 million at the end of June 2024 which included Clime Private Wealth and ProActive Portfolios, a separately managed account offering. Funds under management and mandates were $1.5 billion. 

In an update, the firm said it has now identified additional cost savings that will occur from the demerger.

“These savings are expected to reduce operating costs by approximately $1 million per annum. As we continue to refocus on funds management, the company expects further cost savings to be identified, a portion of which we intend to reinvest into distribution and client service support. 

“The net result of these total initiatives is that Clime now expects FY25 operating costs to be substantially lower than in FY24.”

A second consequence of the Madison exit was the firm announced the exit of Simon Dutton who had worked as the firm’s group head of risk. Clime said Dutton’s role is “no longer required owing to a reduction in business complexity post divestment of Madison Financial Group”. 

With a greater focus on funds management, Clime announced it has appointed Steve Lambeth as a portfolio manager who will report to chief investment officer Will Rigall.

Lambeth joins the firm from Bennelong Long Short Equity Management, where he worked for almost a decade as a senior investment analyst. Prior to this, he held analyst roles at JCP Investment Partners and Wallara Asset Management. 

Finally, it has secured an investment management mandate for Clearwater, a multi-manager fund established and supported by the Victorian Financial Planning Group.

“Clime secured an investment management mandate for Clearwater. We are pleased to advise that final contracts have been signed for a minimum three years on terms that are expected to deliver revenue in excess of $0.5 million per annum.”
 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago