Clime Investment Management Limited (ASX:CAM) is a Sydney-based ASX-listed investment management company that provides funds management and corporate advisory services. The company manages a suite of Equity and income-focused funds, and also holds stakes in aligned businesses including the James Street Private Wealth (JSW) advisory business. Clime operates from Level 31, Angel Place in Sydney's CBD.

Recent Development

On 27 August 2026, Clime Investment Management released its Appendix 4E Preliminary Final Report for the year ended 30 June 2026. Revenue from ordinary activities declined 17% to $7,572,727 from $9.1 million in the prior year, largely due to lower corporate advisory fees. However, profit before tax from continuing operations attributable to members rose 66% to $1,579,153, driven by record performance fees of $2.3 million (versus $0.008 million in FY25) and $3.9 million in other income from the gain on sale of the Clime International and All Cap Funds and reduced equity ownership of the James Street Private Wealth business. Profit after tax attributable to members (including discontinued operations) rose 57% to $800,432. Key negatives included lower funds management fees of $3 million (versus $4.9 million in FY25) and lower corporate advisory fees of $0.5 million (versus $2.5 million in FY25), plus a realised loss of $0.7 million on Redemption of Infocus convertible notes. The company declared a fully franked final FY25 Dividend of 0.5 cents per share (paid October 2025) and a fully franked interim FY26 dividend of 0.3 cents per share (paid July 2026). The financial statements are in the process of being audited by KPMG.

Sector Context

The Australian funds management industry has experienced fee compression and redemption pressure on traditional active equity products, as investors shift toward passive and index alternatives. However, performance-fee generating strategies — where managers charge a percentage of outperformance above a benchmark — can generate windfall revenue in strong market environments. Clime's record performance fees of $2.3 million in FY26 reflect strong investment outperformance in its CAM portfolio, which offsets the structural headwinds in base management fees.

Risks and Uncertainties

Clime's FY26 result is substantially influenced by non-recurring items — the $3.9 million gain on sale of managed funds and the $2.3 million performance fees — which may not repeat at the same magnitude in FY27. The underlying funds management fee base of $3 million (down from $4.9 million) reflects shrinking FUM or lower management fee rates, which is a structural concern. The corporate advisory fee line has also declined materially from $2.5 million to $0.5 million. The audited results from KPMG are still pending, introducing some uncertainty around final reported numbers.

Catalysts to Watch

The release of the audited FY26 Annual Report from KPMG will be the first complete source of information for investors. Growth in funds under management (FUM) — which drives base management fees — is the key Recurring Revenue driver to monitor. Any performance fee recurrence in FY27 will depend on continued investment outperformance. The James Street Private Wealth business, in which Clime now has reduced equity ownership, will also be a variable to watch in terms of ongoing revenue contribution.

Final Thoughts

Clime Investment Management has delivered a profit improvement in FY26, though the Quality of Earnings is meaningfully influenced by non-recurring items including the fund sale gains and exceptional performance fees. The underlying Business — base management fees and corporate advisory — showed meaningful declines in FY26. For investors interested in small-cap asset managers, the sustainability of the revenue recovery in FY27 will be the defining question.