GDG joins ASX 200 as growth pipeline delivers
Generation Development Group, parent of Generation Life, has entered the ASX 200, having grown its funds under management to almost $4 billion.
In its quarterly results, it said funds under management (FUM) was $3.95 billion at the end of the March quarter, up 23 per cent on the prior corresponding period.
According to Generation Life’s chief executive, Felipe Araujo, this was the highest Q3 achieved by the company.
“This quarter also saw Generation life become number one in the investment bonds sector, which highlights the exceptional performance achieved,” Araujo said in an announcement to the ASX.
Notably, gross inflows were up 55 per cent over the March quarter, delivering $239 million in inflows.
Group CEO Grant Hackett said that all businesses contributed positively to the GDG's growth in spite of continued market volatility.
In fact, according to the CEO, the quarter’s performance has helped GDG reach the milestone of becoming an ASX 200 company in April. The firm first listed on the stock exchange in December 2007 as Austock before rebranding to GDG in 2017 and now has a market capitalisation of $1.87 billion.
“This is a strong reflection of the sustained growth, strategic focus, and disciplined execution that have defined GDG in recent years” Hackett said.
It follows GDG announcing in February that it had acquired 100 per cent of Evidentia Group Holdings for $320 million, marking a significant expansion in the managed accounts sector. Evidentia has merged with GDG’s Lonsec Investment Solutions and Implemented Portfolios.
GDG confirmed that the newly combined Evidentia Group FUM increased from $25.4 billion in December to $26.8 billion in March.
Lonsec Investment Solutions contributed $13.3 billion of this figure, which within itself was a 28 per cent increase on Lonsec’s FUM in the previous corresponding period. This was coupled with a whopping 325 per cent increase in net inflows of $685 million.
Following the acquisition of Evidentia, Hackett said that GDG is now the “market leader across all segments of the managed accounts sector”.
“The group remains well-positioned with a robust financial profile, strong net inflows and clear strategic momentum.”
According to the group CEO, the integration of Lonsec Investment Solutions, Implemented Portfolios, and Evidentia is “progressing to plan”, with Evidentia Managed Accounts continuing to win more client mandates.
“Lonsec Research and Ratings also delivered a strong result, with revenue up materially over prior period, supported by growth in private markets, equity, and income research activity,” he added.
Key highlights for the quarter include a suite of product launches, such as the Lonsec Research Logos. SuperRatings also launched a new comparison tool for super funds over the period.
Looking ahead, Hackett said that each of GDG’s approaches put FY26 in a strong position.
“Each of our businesses are strategically positioned to benefit from long-term industry tailwinds, and we remain focused on executing our growth agenda.
“We look forward to building on this momentum and continuing to deliver outstanding performance in the years ahead.”
AUTHOR
Jessica Penny
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