Rising Costs and Integration Risks Loom as GDG Eyes Aggressive FY26 Expansion

A Transformative Year for GDG

Generation Development Group (GDG) has closed FY25 on a high note, delivering exceptional results across its three core businesses, Evidentia Group, Generation Life, and Lonsec Research & Ratings. The June quarter update reveals a company in the midst of a strategic evolution, with strong operational momentum and a clear growth trajectory heading into FY26.

Evidentia and Lonsec Integration Drives Scale

One of the standout achievements was the ahead-of-schedule integration of Evidentia and Lonsec’s managed account operations. This consolidation has not only ensured 100% client retention but also attracted seven new clients post-transaction, with inflows expected to commence in FY26. Evidentia’s funds under management surged to $14.8 billion, marking a 60% increase year-on-year, underpinned by strong net inflows and a growing pipeline of tailored managed account mandates. The rollout of tailored portfolios-at-scale solutions and expanded platform access further positions Evidentia as a market leader in scalable investment solutions.

Generation Life’s Record-Breaking Sales

Generation Life achieved a historic milestone with Investment Bond sales exceeding $1 billion for the first time, representing a 55% increase compared to the prior year. The final quarter alone saw $317 million in sales, a 60% jump from the previous corresponding period. This surge reflects both strong market demand and effective distribution strategies. The company is also strategically investing to capitalize on anticipated changes to superannuation taxation rules, expanding its product suite and enhancing client experience. A notable highlight is the new strategic alliance with BlackRock, aimed at accelerating innovation and broadening retirement solutions, including lifetime annuities.

Lonsec’s Innovation and Operational Leverage

Lonsec Research & Ratings continued its upward trajectory, with 64% of new ratings delivered on-demand, up from 46% the previous year. This shift reflects growing demand for flexible, timely research products, especially in private markets and alternative investments. The launch of new tools such as RateMySuper and Adviser Connect has enhanced client engagement and diversified revenue streams. Lonsec’s introduction of Operational Due Diligence reports further cements its role as a trusted gatekeeper in the financial advisory ecosystem.

Looking Ahead, Momentum and Strategic Focus

GDG’s recent business restructure, while slightly increasing the cost base, has sharpened focus and accountability across teams. The group enters FY26 with a robust pipeline of new mandates, ongoing product innovation, and strategic partnerships that promise to sustain growth. The integration of Evidentia and Lonsec, combined with Generation Life’s record sales and Lonsec’s research advancements, positions GDG well to capitalize on evolving market opportunities and regulatory changes.