Generation Development Group posts record December quarter earnings and inflows

Generation Development Group lifted FUM 36% in the December quarter.

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The Generation Development Group Ltd (ASX: GDG) share price is in focus after the company posted a record December quarter, with total group Funds Under Management (FUM) jumping 36% year-on-year to $34.5 billion and Generation Life gross sales inflows surging 57% to $393 million.

What did Generation Development Group report?

  • Group Funds Under Management (FUM) rose to $34.5 billion, up 36% on the prior corresponding period (PCP).
  • Generation Life delivered record quarterly gross sales inflows of $393 million, up 57% PCP, and FUM up 34% to $5.2 billion.
  • Evidentia achieved net inflows of $1.6 billion for the quarter and maintained a 100% tailored client retention rate.
  • Lonsec saw continued iRate subscription growth and completed the Pound for Pound benchmarking pilot in the UK.
  • Key strategic wins included finalising a long-term alliance with Ironbark Asset Management and acquiring Encore Advisory Group.

What else do investors need to know?

During the quarter, Generation Development Group maintained strong momentum across all divisions. Evidentia expanded its client base, launched several new managed account solutions, and completed the Encore Advisory Group acquisition to strengthen its practice management offering.

Generation Life posted record adviser engagement, with adviser event attendance up 49%, and extended its market leadership in investment bonds. Meanwhile, the Lonsec business focused on innovation, with new governance tools ready for market in Q3, and ongoing integration efforts targeting adviser workflow solutions.

What did Generation Development Group management say?

Felipe Araujo, Chief Executive Officer, Generation Life said:

We continue to see strong and consistent momentum in our inflows, underpinned by deep adviser engagement and growing awareness of the role investment bonds play in long-term wealth planning. We are investing now in capability, partnerships and product development to ensure Generation Life is well positioned to support advisers and clients as future growth opportunities continue to emerge.

What's next for Generation Development Group?

Looking ahead, Generation Development Group is prioritising investment in technology, innovation, and new product development to capture further growth. The recent Ironbark alliance and Encore Advisory acquisition are set to drive significant inflows and enhance the group's advisory and investment capabilities.

Management remains confident about second-half inflows, with several contracted schemes scheduled to commence in Q3. The group will continue to focus on efficiency, strategic partnerships, and expanding its adviser and client base through FY26 and beyond.

Generation Development Group share price snapshot

Over the past 12 months, Generation Development Group share have risen 41%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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