GDG posts 21% profit rise as record inflows lift FUM

Generation Development Group (GDG) has reported a 21% increase in underlying net profit after tax to $40.7 million for FY26, driven by a record $9.7 billion in net inflows and a 37% increase in funds under management (FUM).

Group revenue rose 23% to $178.7 million, while group FUM reached $46.5 billion as at June 30. Statutory NPAT, however, fell 10% to $31.9 million.

The result was supported by growth across GDG's Generation Life, Evidentia and Lonsec businesses, as the group continued to expand is reoccurring revenue base.

Generation Life record a 35% increase in FUM to $5.95 billion, with annual grow sales exceeding $1.5 billion. The business continued to benefit from demand for investment bonds with GDG pointing to retirement, wealth transfer and tax efficiency as structural drivers.

Evidentia Group's managed account FUM increased 37% to $49.5 billion, supported by $8.4 billion in net inflows and continued market share gains.

The result follows the integration of Evidentia, Lonsec Investment Solutions and Implemented Portfolios during FY26, creating a single managed accounts platform.

Lonsec also expanded its research coverage by 9% to 2001 products, while iRate subscribers increased 13% to 5629. GDG said demand for independent research, ratings and governance support remained strong amid heightened governance and compliance expectations across the advice sector.

GDG chief executive Grant Hackett said the group entered FY27 with momentum across its core business.

"FY26 was another strong year for the group characterised by record net inflows, continued market share gains and strong earnings growth," Hackett said.

"The successful integration of Evidentia Group and Lonsec Investment Solutions, combined with ongoing investment across our business, has strengthened our competitive position and enhanced our ability to capitalise on long-term structural growth opportunities."

The board declared a fully franked final dividend of one cent per share, taking the full year dividend to two cents per share.

GDG said it expects continued FUM growth in FY27, with product revenue margins broadly stable and operating expense growth broadly in line with FY26.