GenLife sees record quarterly inflows driven by advisers
A concerted effort by Generation Life to target financial advisers has paid off as the firm reports record inflows for the September quarter.
In its results for the first quarter of FY25, the firm said it saw inflows of $209 million which was 40 per cent up on the prior corresponding period. Specifically, inflows into investment bonds were $159 million.
These inflows saw funds under management grow to just under $3.6 billion, a 33 per cent rise on the prior corresponding period.
Chief executive Grant Hackett noted the help from financial advisers who were advising on its investment-linked lifetime annuity product LifeIncome, which was launched in 2022 and updated with new features in June 2023.
He said: “Generation Life has had an exceptional start to the 2025 financial year achieving the highest inflows on record. It was the first time we have surpassed $200 million in investment bond inflows in a quarter and we also saw an increase in our lifetime annuity sales.
“Active financial advisers advising on LifeIncome continue to grow and we have seen sales increase by 28 per cent from the June quarter, taking FUM for LifeIncome to $42 million.
“The stronger performance is attributed to several drivers including the desire for more financial advisers to consider investment bonds as alternatives to other investment structures due to the tax arbitrage and vast estate planning benefits.”
This demand from financial advisers is expected to continue throughout the financial year, thanks to proposed changes to superannuation which are due to take effect on 1 July 2025. This would be encouraged by increased public campaigns and marketing initiatives.
“The proposed changes to superannuation that are expected to take effect on 1 July 2025 have also supported the rationale for more financial advisers and investors to consider this product structure for their overall investment requirements. Our active financial advisers continue to increase quarter on quarter, which is another strong predictor of sales inflows.
“There is still a significant amount of opportunity to increase our penetration with both existing and new financial advice firms.”
During the quarter, parent company GDG also acquired the remaining 50.8 per cent stake it did not already own in research firm Lonsec and said FUM on Lonsec Investment Solutions increased by 10.1 per cent in the quarter to $11.7 billion driven by strong inflows and market growth.
Five new tailored managed account solutions were launched in the quarter, and there is a strong pipeline of new managed accounts in development.
GDG first invested in Lonsec in September 2020 but said a move from 49.2 per cent to 100 per cent ownership provided an opportunity for GDG to take full control of a familiar asset with further expected significant growth upside.
AUTHOR
Laura Dew
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