How Did GDG Achieve 36% FUM Growth in December Quarter?

Strong Momentum Across GDG’s Divisions

Generation Development Group (GDG) has delivered another quarter of impressive growth, reinforcing its position as a leading player in Australia’s wealth and retirement sectors. The December quarter update reveals significant progress across its three main business units – Evidentia Group, Generation Life, and Lonsec Research & Ratings.

At the heart of this growth is Evidentia Group, which saw its Funds Under Management (FUM) climb 36% year-on-year to $34.5 billion. This surge was underpinned by a combination of strategic initiatives, including a newly formalized long-term alliance with Ironbark Asset Management and the acquisition of Encore Advisory Group. These moves not only broaden Evidentia’s managed account and investment capabilities but also deepen its advisory and practice management services, positioning it strongly for future inflows.

Record Sales and Adviser Engagement at Generation Life

Generation Life continued its upward trajectory with record quarterly sales inflows of $393 million, marking a 57% increase compared to the prior corresponding period. The business sustained a monthly sales run rate above $100 million, highlighted by an unprecedented $150 million sales month in November. This growth reflects strong adviser demand for tax-effective investment bonds and lifetime annuities, supported by extensive adviser engagement initiatives that saw attendance at events rise by nearly 50%.

Importantly, Generation Life’s FUM grew 34% over the past year to $5.2 billion, underscoring the sustained appetite for its retirement and wealth solutions. The company is also navigating regulatory developments, such as the revised Division 296 framework, which is expected to influence adviser structuring decisions progressively once enacted.

Lonsec’s Innovation and Market Expansion

Lonsec Research & Ratings maintained solid momentum despite a slight contraction in the adviser market. The firm focused on product innovation, particularly in governance tools and adviser workflow integration, with new offerings slated for release in the third quarter. Its SuperRatings business completed a pioneering benchmarking pilot in the UK, enhancing its value-for-money assessments and strengthening its international footprint.

Subscriptions to Lonsec’s iRate platform continued to grow, reflecting increased penetration among self-licensed and smaller advisory practices. This growth is a testament to Lonsec’s strategy of embedding technology partnerships to deliver greater value to advisers.

Strategic Outlook and Market Position

GDG’s diversified platform and disciplined execution have allowed it to capitalize on structural tailwinds in Australia’s wealth management and retirement sectors. The group’s focus on innovation, efficient capital allocation, and strong adviser relationships is expected to sustain its high growth trajectory into FY26 and beyond. The timing of scheme commencements, particularly for Evidentia, suggests that inflows may accelerate in the second half of the financial year, adding further momentum.

Overall, GDG’s December quarter results highlight a business well-positioned to navigate evolving market dynamics, regulatory changes, and client needs, leveraging strategic partnerships and technology to enhance its competitive edge.