Clime Capital (ASX:CAM) is an ASX-listed Listed Investment Company (LIC). Clime Capital invests in Australian equities and income securities, combining active management with a focus on sustainable dividends.

Managed by a leading Australian fund manager

Clime Capital is managed by Clime Investment Management (ASX:CIW), whose recent strategic simplification has strengthened its investment capability and reduced operational complexity. Clime Investment Management earns management and performance fees from Clime Capital, but Clime Capital remains a standalone LIC whose valuation is driven by NTA progression, dividend capacity and market discount rather than Clime Investment Management’s corporate performance. Its convertible notes (CAMG) are a further structural differentiation enabling funding of its credit and income portfolio and Clime Capital earning a yield above the fixed interest cost of the notes. We have written a separate note about Clime Investment Management and this note should be read in conjunction with it.

A unique member of a unique ecosystem

Australia’s LIC sector is anchored by well‑established vehicles such as AFIC, Argo and the Wilson Asset Management suite. Clime Capital sits within this ecosystem as a yield‑focused LIC with a long performance record and a materially higher dividend yield than most non‑Wilson peers. Recent improvements including a strong FY26 excess return, a large profit reserve, competitive yield and more disciplined portfolio activity, support the case for discount compression.

We see upside to $0.80-0.89

Clime Capital currently trades at a ~25% discount to its after‑tax NTA, a level shaped by historical underperformance, modest liquidity and limited broker coverage. We see upside to $0.80-0.89 per share based on a 10% discount to a projected FY27 NTA of $0.89-0.98. Please see page 14 for the key risks.