In an update to the market on Monday, Clime Investment Management noted that the completion of its purchase of Madison Financial Group on 26 June meant the group now had over $4.5 billion in funds under management and advice.
Some $3.57 billion of this had come from the acquisition of Madison, including $3.51 billion in funds under advice and $73 million in insurance premiums under advice.
Clime said around 100 authorised representatives worked under the Madison licence and the group had annual gross revenue of approximately $34 million.
“With the acquisition of Madison Financial Group, Clime is well positioned as an integrated wealth management firm offering a range of services for self-directed, retail and wholesale clients,” the group said.
Assets under management (AUM) across the Clime group excluding Madison amounted to $982 million over the June 2020 quarter.
However, the group’s broader AUM had also seen growth, rising from $874 million in the March 2020 quarter and $924 million in the June 2019 quarter.
Clime’s SMA business increased by 34 per cent to $83 million in the June quarter, up from $62 million in the June 2019 quarter.
Its managed funds and mandates division also rose by 10 per cent, from $281 million to $308 million.
It’s certainly an imperfect measure, but one that the industry (and equity analysts) understand and therefore use to benchmark businesses accordingly
What is the obsession with funds under advice? They provide cashflow but you don’t own them, they can move at anytime so what are they worth other than boasting rights? They do come with liability though!
Funds under advice is very important to product companies that own or control advice businesses. It is client money that is currently in a competitors product, which they will try to switch to an inhouse product using adviser coercion. This is the IOOF model. It is why IOOF always makes a big deal about Funds Under Advice in their investor presentations.