Wealth

Insights on wealth management, investments, and personal finance.

Managed funds

Managed funds
Clime Investment's early-stage recovery shows promise
Following a few turbulent years mired by losses and leadership issues, the ASX-listed wealth group Clime Investment Management (ASX: CIW) could be worth keeping on radar following early signs that robust plans by managing director Michael Baragwanath to turn the ship around are starting to bear fruit. While earnings have declined by 55.5% per year over the past 5 years – with large one-off items impacting financial results – efforts to reposition to company as a true multi-asset, client-focused manager of scale appear to be rekindling investor interest in the stock. FY25 saw the fund manager deliver a net profit after tax of $510,676 following a massive loss of $3.8 million in FY24. Driven by the private wealth and corporate advisory unit, gross revenue of $13.4 million grew from $11.8 million year on year. Funds under management, advice and mandates have grown to $1.7 billion by offering individually managed accounts, managed funds and separately managed accounts.Early stage restructure While much of the turnaround can be attributed to offloading Madison Financial Group last June to Infocus, this was also accompanied by a broad restructure, which delivered over $2 million in annual savings from executive costs, third-
Managed funds
Why investing with active fund managers can be dicey
Given that fund managers the world over have made an art form out of failing to beat their benchmarks – aka a passive index – it’s bemusing why investors and some financial media continue, in varying in degrees, to have an unwarranted reverence for the prognostications they make about markets. While fund managers may appear to be well-intended in sharing stock picks, it’s important for you, the investor, to stop and question why A) they’re sharing their views with the market, B) how they’ve arrived at these conclusions and C) over what time frame their recommendations are expected to hold water.Shopping their own bookFirstly, it’s important to realise that when a fund manager talks about ‘high conviction’ stocks, all it may be doing is “shopping its book”. In other words, a fund manager may only be singing the praises of the stocks it has already placed bets on – within its portfolio - in the hope that retail investors will buy into their positive sentiment, which will help drive the share price higher. Secondly, it’s important to recognise that investors who place their trust in active fund managers are - more often than not - paying a premium for their inferior stock-picking. Active fund managers who aim to beat benc
Managed funds
Goldman: Hedge funds ramp up bets on banks, insurers
Hedge funds are turning more bullish on financial stocks, with banks, insurers, and consumer finance firms attracting the fastest pace of buying in three months, according to Goldman Sachs. The bank’s latest research note said hedge funds increased positions in financials last week amid expectations that higher levels of dealmaking and a potential easing of regulations would bolster sector profitability. An index of European banks has already risen more than 40% this year, while U.S. banks have gained just over 20%. The note said hedge funds showed no clear regional preference, though North America and Europe accounted for the majority of long positions. After a period of reduced activity in August, hedge funds lifted gross leverage - a measure of overall trading exposure - by the largest amount in eight months last week. Financials were the second most bought sector tracked by Goldman’s prime brokerage unit, with technology stocks following close behind. While banks typically benefit from higher interest rates, Goldman said that the prospect of lower rates had already been priced into valuations. The Federal Reserve cut interest rates last week for the first time since December and signalled further reduction
Managed funds
Charles Schwab expands with 16 new branches, 400 hires
Charles Schwab is doubling down on its retail presence, announcing plans to open 16 new branches across the United States and hire up to 400 staff to bolster its wealth advisory teams. The Texas-based financial services and custodial firm said Wednesday it has already opened several of the planned locations, with another 25 existing branches set for expansion or relocation. The growth initiative underscores Schwab’s belief in the continued importance of in-person financial advice, even as digital services remain central to its strategy. The new hires will include financial and wealth consultants working alongside financial advisors to support high-net-worth and ultra-high-net-worth clients. Additional positions will be available in Schwab’s corporate offices, spanning client services, wealth management, and roles focused on digital innovation and artificial intelligence. Jeannie Bidner, head of Schwab’s branch network, described the physical footprint as a “competitive differentiator” in connecting with and serving clients. Schwab is targeting expansion in high-growth, high-wealth markets such as Texas, Florida, and California. One of the first new branches has already opened in Austin, with another set to follow
Managed funds
Citi partners with BlackRock on US$80bn wealth solutions
Citigroup’s wealth division has unveiled a landmark partnership with BlackRock to launch Citi Portfolio Solutions powered by BlackRock, a customised offering aimed at enhancing the investment experience for Citi’s global client base. The collaboration combines Citi’s advisory expertise with BlackRock’s investment management capabilities and technology. Pending regulatory approval, the new platform is expected to roll out in the fourth quarter of 2025 and will see BlackRock manage approximately US$80 billion (A$122.2 billion) in assets for Citi Wealth clients across nearly 100 countries. Citigroup Head of Wealth, Andy Sieg noted: "We want to bring best-in-class advice, solutions and service to our clients, and we want to serve more of the world’s changemakers. With this offering, we can accomplish both. "It brings together the sophisticated relationship-driven and market-based advice of our bankers, backed by the insights of our own Chief Investment Office, with the renowned investment expertise and innovative technology capabilities of BlackRock.” The move reflects a strategic shift by Citi Wealth, which oversees more than $1 trillion in client balances, including $635 billion in investment assets as of Q2 2025.

Wealth

Managed funds

Clime Investment's early-stage recovery shows promise

Why investing with active fund managers can be dicey

Goldman: Hedge funds ramp up bets on banks, insurers

Charles Schwab expands with 16 new branches, 400 hires

Citi partners with BlackRock on US$80bn wealth solutions