GDG delivers 36% jump in FUM

Generation Development Group has reported strong growth to the year ending June 30.

Generation Development Group reported a record quarter for Generation Life, adding to the overall success of the broader business.

Generation Life reported a rise of 35% in funds under management (FUM) for FY26 to $5.95 billion.

FUM in the June quarter grew by $622 million driven by sustained adviser demand, strong investment performance and continued momentum across the investment bond offering, it said.

"Structural and legislative tailwinds supporting long-term growth remain favourable. Australia's ageing population, increasing demand for retirement income solutions and continued need for financial advice are expected to support demand across our investment bonds and LifeIncome products, managed accounts and research businesses over time," Generation Development Group chief executive Grant Hackett said.

"The combination of Generation Life, Evidentia and Lonsec creates a differentiated wealth platform spanning product manufacturing, investment implementation and independent research. We believe this integrated operating model positions GDG to continue delivering sustainable long-term growth into FY27 and beyond."

Evidentia, a managed accounts provider under Generation Development Group, reported FUM of $40.5 billion for the financial year, supported by both organic client growth and strategic transitions.

"FY26 represented an important milestone for the Group. During the year we completed the integration of the Evidentia and Lonsec managed account businesses, creating a more scalable operating platform with broader distribution and deeper client relationships," Hackett said.

"Across each of our businesses we remained focused on disciplined execution, delivering continued growth while investing in capabilities that support long-term shareholder value."

Additionally, Generation Development Group has said the major shifts in tax policy reinforces the long-term case for investment bonds, describing the changes as a clear structural positive for the sector.

"Division 296, legislated in Q3, applies additional tax to super balances above $3 million and is expected to drive demand for tax-effective structures outside superannuation," GDG said.

"The 2026 Federal Budget's tax reforms to capital gains, discretionary trusts and negative gearing significantly widens the pool of investors likely to consider investment bonds. We expect the impact to emerge over several years from FY27. The policy direction is a clear structural positive for the sector."