Generation Development (ASX:GDG) Plans Growth in Managed Accounts Through BlackRock Partnership and New Products

Highlights

• Generation Development Group’s FY25 revenue increased 191% year-on-year to AUD 141.3 million.
• In Q1 FY26, Evidentia Managed Accounts funds under management grew to AUD 32.6 billion, up 46% year-on-year.
• The company plans to expand managed account offerings through its partnership with BlackRock and new product launches.

Generation Development Group Limited (ASX:GDG) is an Australian company specialising in life investment products within the Australian life insurance industry. The company operates through two main segments, Benefit Funds Management and Fund Administration, and Investment Solutions, Research & Ratings.

Financial Performance

For the 12 months ended 30 June 2025 (FY25), the company reported group revenue of AUD 141.3 million, representing a 191% increase compared to FY24. This growth was supported by the acquisitions of Lonsec (executed in August 2024) and Evidentia Group (completed in February 2025). Within Lonsec Research, the proportion of on-demand ratings increased, with 64% of new product ratings were delivered on an on-demand basis, up from 46% in FY24. Meanwhile, underlying profit after tax rose 170% YoY to AUD 30.2 million.

Business Update

For the first quarter of FY26 (Q1FY26), Evidentia Managed Accounts reported funds under management (FUM) of AUD 32.6 billion, representing a 46% increase YoY, supported by net inflows exceeding AUD 2 billion and the launch of new SMA and MDA products. During the reported period, all businesses saw a positive start to FY26.

Generation Life’s FUM increased to AUD 4.8 billion, up 34% compared to the same period last year, with quarterly sales inflows reaching AUD 330 million, a 58% YoY increase, and the highest quarterly inflow recorded. Lonsec Research & Ratings reported YoY growth, with an increase in the number of products covered and a rise in iRate subscribers.

Key Negatives

In FY25, the company’s  personnel expenses increased from AUD 15.6 million in FY24 to AUD 52.3 million, while total expenses rose 150% compared to the previous year.

Business Outlook

GDG plans to continue building on sales at Generation Life by taking advantage of legislative developments, including superannuation clarity and potential tax reforms such as Division 296.

The company intends to utilise its strategic alliance with BlackRock to introduce new products and expand distribution. GDG also aims to capture growth from structural changes in the wealth management sector, particularly the managed account market, which is forecast to grow from AUD 206 billion to AUD 474 billion by 2030.

Share Performance of GDG

GDG’s shares were trading at AUD 6.34 per share on 17 November 2025 with an intraday gain of 0.16%. GDG’s stock has increased by 0.15% in the last three months, up 30.45% over the six months and increased by 82.00% over the past year. GDG’s 52-week high is AUD 7.77, recorded on 16 October 2025, and 52-week low is AUD 3.36, recorded on 20 December 2024.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 17 November 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Disclaimer

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