Generation Development Group (ASX:GDG) has started the 2025 financial year with significant growth, as detailed in their September quarter update. The company’s funds under management (FUM) surged by 33% compared to the same period last year, reaching $3.6 billion. This impressive rise was driven by increased inflows into investment bonds, which hit $209 million for the quarter—marking the first time the company has surpassed $200 million in quarterly inflows.
According to CEO Grant Hackett, the growth is largely attributed to heightened interest from financial advisers who are increasingly turning to investment bonds as a tax-efficient alternative to superannuation. "This is the highest inflow on record for us, and we see continued momentum as advisers and investors recognise the estate planning and tax benefits of investment bonds," Hackett stated. He also pointed to upcoming changes in superannuation policies as a driver for this shift in investment strategies.
In addition to its strong FUM growth, GDG saw net inflows rise by 40% year-on-year, with a 51% market share as of June 2024.
The group’s recent full acquisition of Lonsec Holdings in August 2024 also positions GDG for further expansion.
