top of page
Fund Manager Summary on Generation Development Group Ltd (ASX:GDG)
In January 2026, QVG Capital commented that Generation Development Group Ltd (ASX:GDG) was weak due to slower-than-anticipated inflows into its recently acquired Evidentia business, leaving the market unforgiving of an expensive acquisition that has yet to meet near-term expectations while the manager remains focused on longer-term optionality. Across fund managers the consensus is cautiously positive: most recognise GDG’s leading positions in investment bonds, Lonsec research and the enlarged managed accounts capability following the Evidentia and Lonsec transactions, and they cite structural tailwinds from potential superannuation tax reform and the Retirement Income Covenant plus a strategic alliance and minority investment from BlackRock as meaningful growth enablers; reported metrics such as total FUM of roughly $34.5 billion and record quarterly gross inflows near $393 million support medium-term growth expectations and Ausbil’s view of high single- to double-digit CAGRs (around 20% for investment bonds and +30% for managed accounts), but multiple managers flag material near-term risks including timing and lumpiness of Evidentia flows, missed FUM guidance, elevated valuation and crowding that reduce margin of safety, possible FY26 cost pressures and sensitivity around large mandate awards; actionable considerations are to monitor Evidentia flow run-rates and mandate outcomes, integration progress and cost synergies from acquisitions, development and commercialisation of BlackRock co‑developed retirement products, and regulatory developments on super taxation as key catalysts that could materially affect earnings and re-rate the stock, while recognising GDG’s scale, distribution reach and product optionality provide strategic advantages to capture long-term market share gains.
Commentary From The Managers
There are 38 insights from 14 fund managers regarding their investment in Generation Development Group Ltd (ASX:GDG) available on Thesis Tracker.
Unlock Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Wilson Asset Management
31 Jan 2026
$5.16
Summary
- Wilson Asset Management believes Generation Development Group is demonstrating strong operating momentum and increased their position because the recent share-price weakness creates an attractive opportunity to add to a name with a compelling medium‑term growth profile.
- Business focus: Generation Development Group provides wealth and retirement products and services across platforms, including managed accounts, investment bonds and lifetime annuities via its three divisions, with Generation Life a key growth driver.
- Quarterly performance: December quarter showed robust underlying momentum: $34.5bn funds under management (up 36% year‑on‑year) and record quarterly gross inflows of $393m (up 57% year‑on‑year), driven primarily by Generation Life.
- Market reaction: The share price fell sharply post‑update; market commentary suggests the sell‑off reflected pre‑existing investor positioning, elevated valuation expectations ahead of results, and heightened sensitivity to the timing of inflows rather than the headline growth metrics.
- Evidentia Group dynamics: Inflows in Evidentia are lumpier than traditional investment bonds, making short‑term timing visibility lower, but momentum within Evidentia remains strong and supports medium‑term growth expectations.
- Risk considerations: Key sensitivities include timing volatility of inflows, short‑term valuation repricing and investor positioning; these factors can create price dislocations but do not, in our view, negate the underlying growth trajectory.
- Investment conviction: Given the combination of strong FUM and inflow growth, division‑level drivers (Generation Life and Evidentia), and transient market reaction, we view the weakness as an opportunity to increase exposure to the company’s medium‑term earnings and asset growth story.
QVG Capital
31 Jan 2026
$5.16
Summary
- QVG Capital believes recent weakness mainly reflects slower-than-anticipated inflows into the recently acquired Evidentia and the market's punitive reaction to an expensive acquisition that has not met expectations, and continues to hold because we see a compelling valuation at the current growth trajectory and clear optionality beyond managed accounts.
- Driver of weakness: Slower Evidentia inflows have delayed the expected revenue and earnings contribution, compressing near-term performance.
- Market reaction: Sentiment has been negative as investors penalise an acquisition priced at a premium that has yet to deliver anticipated outcomes.
- Valuation view: Despite near-term noise, QVG Capital sees a very compelling valuation relative to the company’s current growth trajectory.
- Optionality beyond managed accounts: We see potential upside from cross-selling Evidentia capabilities, scale and fee-mix improvements, cost synergies and further product or distribution expansion.
- Horizon-focused approach: QVG Capital is focused on the medium-term horizon and is prepared to tolerate short-term volatility to realise value from operational execution and optionality.
QVG Capital
29 Dec 2025
$5.82
Summary
- Generation Development Group is led by former Olympian Grant Hackett.
- QVG Capital notes that GDG is ‘swimming in tailwinds’ due to its winning investment bonds.
- The Lonsec research arm of GDG is continuing to expand.
- GDG's managed accounts business is benefiting from the advice sector’s shift to outsourced portfolio solutions.
- QVG Capital believes GDG should continue to broadens its lanes and add new revenue streams.
- There is potential for GDG to dive into adjacent pools for further growth.
Wilson Asset Management
7 Nov 2025
$6.58
Summary
- Wilson Asset Management continues to hold Generation Development Group Ltd due to their strong management team led by Grant Hackett.
- The business has significant leverage to water, with robust structural wins in both investment bonds and their managed accounts business through Evidentia.
- Concerns about delays in awarding a large mandate within Evidentia are alleviated by industry feedback indicating that it is likely to be awarded soon.
- The delay is attributed to an upsizing of the mandate, which is viewed positively.
- The recent quarterly update showed strong momentum in fund flows.
- There is a perceived opportunity in annuities, with Generation Development Group close to signing their first super fund.
- This potential deal could turn a low single-digit million loss into at least break-even.
- Super funds tend to attract follow-on business, suggesting incremental earnings momentum ahead.
- Overall, Wilson Asset Management believes the business is well-positioned for future earnings upgrades.
Ausbil Investment Management
31 July 2025
$6.06
Summary
- Generation Development Group (GDG) returned +10.2% for the month.
- GDG delivered a mixed Q4 FUM update.
- Evidentia FUM was well below prior expectations.
- Remaining core business divisions in Research and Investment Bonds exceeded estimates.
- Evidentia continues to grow at double the pace of the broader managed account industry.
- GDG remains a high-conviction position for Ausbil.
- Investment thesis underpinned by leadership in specialist, fast-growing markets.
- Scale and distribution advantages continue to drive market share gains over the medium-term.
QVG Capital
31 July 2025
$6.06
Summary
- QVG Capital notes a mixed quarterly update from Generation Development Group Ltd.
- The Investment Bond and Research divisions performed well, meeting or exceeding expectations.
- The Evidentia managed accounts business fell short of funds under management expectations.
- Higher costs are anticipated into FY26, as flagged by the company.
- Despite challenges, the stock rose 10%, reflecting market leniency.
- QVG Capital continues to hold its position, acknowledging the mixed performance.
Ophir Asset Management
23 July 2025
$5.42
Summary
- Ophir Asset Management highlights Generation Development Group as a standout performer in the market.
- Recent acquisitions of Evidentia and Lonsec position the company for significant growth.
- Mitchell notes the asset consulting industry is a scale business, and Generation Development Group has established a substantial lead.
- This lead provides leverage with Independent Financial Advisors (IFAs) who utilize their services.
- Ophir sees a long runway for growth and expansion in this sector.
- Ophir Asset Management has participated in a capital raise, supporting the consolidation strategy at attractive terms.
Ausbil Investment Management
26 June 2025
$5.32
Summary
- Ausbil continues to hold Generation Development Group (ASX: GDG) due to its potential to achieve high growth similar to successful peers like HUB24, Netwealth, and Pinnacle.
- The leadership team, including Executive Chair Rob Coome, CEO Grant Hackett, and CFO Terrence Wong, has transformed GDG into a diversified product and distribution platform.
- GDG is poised to benefit from multiple growth drivers, including legislative changes in investment bonds and an increasing demand for managed accounts.
- Investment bonds are being recognized as a complementary wealth management vehicle due to their tax advantages and flexibility for estate planning.
- An estimated $224bn in superannuation is above the proposed unindexed cap of $3m, representing a significant growth opportunity for GDG's managed investment bonds.
- Gross inflows have increased by 52% year-to-date, with GDG capturing 58% of industry inflows despite having only 33% market share.
- The Retirement Income Covenant will drive innovation in retirement income solutions, a market that currently lacks sufficient offerings despite its growth potential.
- GDG's strategic alliance with BlackRock to co-develop retirement income solutions highlights industry confidence in GDG's strategy.
- Managed accounts are projected to grow significantly, with GDG's recent acquisitions of Evidentia and Lonsec positioning it as an industry leader.
- GDG's FUM growth can compound at around 20% in investment bonds and over 30% in managed accounts, fueled by strong net inflows.
- A recent strong performance has led to a significant re-rating of GDG, with an expanded forward P/E from ~30x to 50x while retaining a favorable PEG ratio.
- Overall, Ausbil sees GDG as being on the cusp of a multi-year earnings growth cycle with multiple organic growth opportunities.
Yarra Capital Management
13 June 2025
$5.69
Summary
- Generation Development is a hold.
- Compelling product set across managed accounts, investment bonds, and research.
- Structural growth elements observed in all three markets.
- Compared to investment platforms like Netwealth, which has superior technology in its core IP.
- Netwealth is expected to have lower customer churn over time.
- Similar valuation multiples for Netwealth and Generation Development.
- Generation Development has become a popular stock, leading to crowding in the market.
- Risk around current earnings expectations with no margin of safety.
- Elevated valuation metrics are a concern.
Datt Capital
13 June 2025
$5.69
Summary
- Datt Capital views Generation Development as a buy.
- Three divisions were highlighted as key components of their business model.
- The Lonsec acquisition was identified as pivotal for the group's growth.
- This acquisition enables the company to launch a new suite of products.
- It significantly increases their total addressable market (TAM).
- Despite a crowded trade, Datt Capital believes it is crowded for a good reason.
- There is a potential for changes to the superannuation system that could greatly benefit the company.
Ophir Asset Management
10 June 2025
$5.69
Summary
- Ophir Asset Management updates its investment thesis on Generation Development Group Ltd (ASX:GDG).
- Grant Hackett, a well-known leader, is at the helm of the company.
- Generation Development Group is a top player in Australia’s managed accounts sector.
- The company operates through its businesses Lonsec and Evidentia.
- It specializes in developing investment portfolios for financial advisors and high net worth investors.
- Ophir Asset Management appreciates Hackett's driven leadership style.
- The firm continues to hold its position due to the company's strong market presence and leadership.
Ausbil Investment Management
31 May 2025
$5.79
Summary
- Generation Development Group (GDG) surged +34.5%, recovering from a prior decline.
- In May, GDG announced a strategic partnership with Blackrock to co-design and distribute retirement income solutions in Australia.
- This collaboration is expected to accelerate GDG’s organic push into annuities, capitalising on a generational shift from accumulation to deaccumulation.
- The partnership benefits from a more favourable policy environment following the Retirement Income Covenant.
- GDG’s early-stage annuities division is gaining attention and offers meaningful optionality value.
- Blackrock's acquisition of a minority stake in GDG is seen as a strong endorsement of the company and its long-term growth potential.
Firetrail Investments
31 May 2025
$5.79
Summary
- Firetrail Investments continues to hold a positive outlook on Generation Development Group Ltd (GDG).
- GDG experienced growth in May, driven by favorable market conditions.
- Increasing likelihood of superannuation tax changes under the Albanese government.
- Proposed legislation may impose taxes on superannuation balances exceeding A$3 million.
- Investment bonds, as a tax-effective structure, are positioned to benefit from these changes.
- Firetrail Investments anticipates a significant increase in net flows for GDG as a result.
Blackwattle Investment Partners
31 May 2025
$5.79
Summary
- Blackwattle Investment Partners updates their investment thesis on Generation Development Group Ltd.
- Generation Development Group is a market leader in investment bonds and investment consulting, research, and ratings (Lonsec and Evidentia).
- Shares rose +34.5% in May due to a majority Labor win in the Federal election, enhancing the likelihood of superannuation tax reform.
- This reform makes investment bonds a more attractive proposition.
- GDG formed a strategic alliance with Blackrock to co-design and distribute Holistic Retirement Solutions.
- This product addresses longevity risk and benefits from long-term tailwinds from the retirement income covenant.
- Despite the recent share price increase, Blackwattle Investment Partners sees significant upside as GDG capitalizes on structural tailwinds.
- Key factors include managed account penetration, superannuation tax reform, and the retirement income covenant.
Wilson Asset Management
31 May 2025
$5.79
Summary
- Generation Development Group is a leading provider of investment bonds and managed accounts.
- In May 2025, the company experienced a 34% share price increase, rising from $4.12 to $5.54 per share.
- This increase was driven by a strategic alliance announced on 8 May 2025, between Generation Life and BlackRock.
- The alliance with BlackRock, the largest investment manager of retirement assets globally, has strengthened investor confidence.
- Funds from this alliance will support a new product launch aimed at helping retirees transition from accumulation to decumulation.
- The new product will focus on providing sustainable income streams with longevity protection.
- Additionally, the completion of the acquisition of the remaining shares in Lonsec has contributed to the company’s strong performance.
- As of 29 May 2025, the share price reached an all-time high of $5.72.
Tyndall Asset Management
31 May 2025
$5.79
Summary
- Generation Development Group outperformed following a strategic alliance with BlackRock.
- BlackRock will collaborate to design and distribute retirement solutions products for Australians.
- BlackRock has acquired a minority stake in Generation Development through a share subscription.
- This partnership is significant as BlackRock is the largest investment manager of retirement assets globally.
- Tyndall Asset Management continues to hold because of the positive implications of this strategic alliance.
Pengana Capital Group
30 Apr 2025
$4.12
Summary
- Pengana Capital Group notes that Generation Development experienced a sharp correction of -17% following a recent quarterly update.
- The correction was primarily due to a slight delay in the on-boarding process of a larger account within the newly acquired Evidentia business.
- The market's response was significant, wiping off almost 100% of the purchase price of Evidentia.
- Pengana Capital Group views this market reaction as a major overreaction.
- Despite the volatility, Pengana Capital Group continues to hold its position in Generation Development.
QVG Capital
30 Apr 2025
$4.12
Summary
- Generation Development Group Ltd (GDG) is a recent addition to the QVG Capital portfolio, added in the second half of 2024.
- QVG Capital is increasingly excited about GDG's long-term return potential, especially in the managed accounts sector.
- GDG exhibits many characteristics similar to HUB24, which has been a successful investment for the fund.
- In April, GDG experienced a decline due to its revenues being partially linked to equity markets and challenges faced by the recently acquired Evidentia business.
- QVG Capital believes that Evidentia’s soft inflow numbers are largely timing-driven.
- QVG Capital took advantage of GDG’s weakness to increase their holding.
Ausbil Investment Management
30 Apr 2025
$4.12
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Firetrail Investments
30 Apr 2025
$4.12
Summary
- Firetrail Investments continues to hold Generation Development Group Ltd (GDG) despite recent challenges.
- The company reported strong results in 2 out of 3 segments in its quarterly report.
- Market reaction was negative, focusing on the Evidentia business, which had net flows below expectations.
- It is now unlikely that Evidentia will meet the guidance of $18.5 billion AUM by June 2025.
- Despite the setback, Firetrail Investments sees little downside to short-term earnings forecasts.
- There is a significant amount of value emerging on a 3-year view.
Paradice Investment Management
31 Mar 2025
$4.98
Summary
- Paradice Investment Management continues to hold an overweight position in Generation Development Group (GDG).
- GDG has been a top contributor to the fund's performance.
- In early February, GDG announced the acquisition of Evidentia Group for $360m.
- This acquisition is expected to be earnings accretive and enhances GDG's position in the growing Australian managed accounts market.
- GDG reported strong revenue and profit growth for 1H25, driven by continued strong inflows.
- Effective March 23, 2025, GDG will be added to the S&P/ASX Small Ordinaries Index and the S&P/ASX 300 Index.
- Paradice believes this index inclusion will have a positive impact on GDG's stock performance.
River Capital
31 Mar 2025
$4.98
Summary
- River Capital initially invested in Generation Development Group (GDG) in early 2023 due to its growth potential in the Investment Bonds business and Lonsec Investment Solution (LIS).
- Confidence in GDG’s management, including CEO Grant Hackett and CFO Terence Wong, was reinforced through multiple meetings.
- Investment is protected by the annuity nature of cash flows and supported by structural tailwinds in both business segments.
- GDG’s investment bond (IB) business holds a dominant market share, supported by increased awareness among financial advisers.
- Approximately 2000 active advisers are in GDG's network, with new advisers consistently joining.
- The Federal government’s proposed tax changes on super balances over $3 million further drive interest in Investment Bonds as a viable alternative.
- Lonsec is fully owned by GDG and includes two annuity-like businesses: Research and Lonsec Investment Services (LIS).
- Both IB and LIS are expanding their market share amid ongoing industry growth, enhancing shareholder value.
- Over the past year, the market has recognized GDG's growth potential, which led to a favorable re-rating of the stock.
- River Capital remains focused on uncovering hidden investment opportunities like GDG that may be overlooked by larger investors.
- While acknowledging risks, River Capital backs investments that present a superior risk/return profile, supported by strong management and a thorough understanding of the business.
Ausbil Investment Management
31 Mar 2025
$2.47
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Ausbil Investment Management
28 Feb 2025
$5.18
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Ellerston Capital
28 Feb 2025
$5.18
Summary
- Generation Development Group Ltd (GDG AU) experienced a strong month, rising approximately 15%.
- The increase followed the announcement of the acquisition of Evidentia, a rival managed account provider.
- This acquisition comes less than 12 months after GDG acquired the remaining half of Lonsec, enhancing their market position.
- The merger effectively combines the two largest managed account providers, boosting their competitive advantage.
- The deal is expected to be double-digit accretive before considering potential synergies.
- The strategic rationale behind the acquisition lies in the complimentary product sets offered by both companies.
- The combined entity is projected to manage over $25 billion in managed account Funds Under Management (FUM).
- Ellerston Capital notes that GDG continues to capture a significant share of the rapidly growing managed account category.
- Additionally, GDG delivered a strong 1H25 result, with its investment bond business outperforming expectations.
- Overall, the stock remains a high-conviction holding in Ellerston Capital's portfolio.
Firetrail Investments
31 Jan 2025
$4.56
Summary
- Firetrail Investments notes that Generation Development Group (GDG) has outperformed in the recent month.
- GDG achieved record net flows in its investment bond business.
- Lonsec Investment Solutions, which is owned by GDG, showed strong quarter-on-quarter growth in funds under management.
- Firetrail Investments continues to hold its position due to these positive developments.
QVG Capital
31 Jan 2025
$4.56
Summary
- QVG Capital highlights Generation Development Group Ltd (GDG) as a standout performer amid a slow news period.
- GDG's December quarter update indicates accelerating fund inflows and increased funds under management.
- As a provider of investment bonds, GDG faces few competitors, allowing it to capture significant market growth.
- Competitors do not prioritize investment bonds, giving GDG a competitive edge in the industry.
- Managed Accounts are emerging as a key growth driver, leveraging Lonsec's research capabilities to create tailored models.
- The business has a long runway for growth and generates attractive incremental profit margins.
- While risks exist, including valuation and regulatory risks, GDG's prospects remain strong.
- The upcoming vote on February 4th regarding Division 296 could potentially enhance GDG's attractiveness by making their products more favorable compared to superannuation.
- QVG Capital continues to hold its position in GDG due to these positive indicators.
Ausbil Investment Management
31 Jan 2025
$4.56
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Paradice Investment Management
31 Dec 2024
$3.55
Summary
- Paradice Investment Management maintains an overweight position in Generation Development Group (GDG).
- GDG's share price increased by 27% in the December quarter, contributing to a 112% gain for the calendar year.
- The stock is among Paradice's top 5 holdings.
- Investment in GDG is driven by the structural growth of its investment bond business, offering tax arbitrage and estate planning benefits.
- The recent buyout of its remaining interest in Lonsec is viewed as a strategically positive move.
- GDG reported strong momentum in 1Q25, with record inflows up 40% compared to the previous corresponding period (pcp).
- Expectations for accelerated inflows into Lonsec's Managed Accounts business into FY25.
Ausbil Investment Management
31 Dec 2024
$3.55
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Firetrail Investments
31 Dec 2024
$3.55
Summary
- Firetrail Investments notes that Generation Development Group was a strong performer in 2024.
- A trifecta of positive developments included:
- Reacceleration of inflows in the investment bonds business.
- Acquisition of 100% of Lonsec.
- Strong cost control.
- These developments led to FY25 EPS revisions of +30% and a significant rerating of the business.
- Looking forward, Firetrail Investments sees further valuation upside driven by Lonsec's investment solution business.
- Earnings from this segment are expected to grow by over 30% per annum over the next 3-5 years.
- Further changes to superannuation taxation present an upside risk.
Firetrail Investments
30 Nov 2024
$3.67
Summary
- Firetrail Investments continues to hold its position in Generation Development Group Ltd.
- The firm experienced a strong performance in November.
- No specific stock news was reported during the month.
- Investor interest is shifting towards the GDD-owned Lonsec Managed Accounts business.
- This business is achieving a growth rate of ~30% year-on-year.
- There is a long growth runway anticipated for this segment.
Wilson Asset Management
31 Oct 2024
$3.39
Summary
- Generation Development Group had a strong start to the financial year with record bond flows for the September 2024 quarter.
- Lifetime annuity sales were the key driver, resulting in a 33% increase in funds under management (FUM) compared to the previous period.
- Management reported a 10% FUM growth in the recent acquisition, Lonsec Holdings, driven by strong inflows and market growth.
- Investors’ concerns about inflation, uncertainty around superannuation regulations, and current taxation thresholds are increasing demand for flexible, tax-effective investment options.
- Wilson Asset Management continues to hold because Generation Development Group is well-placed to capitalize on market growth, given its strong competitive position in investment bonds.
- The company is focused on strategic growth across its insurance and research businesses.
Ausbil Investment Management
31 Oct 2024
$3.39
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Ellerston Capital
31 Oct 2024
$3.39
Summary
- Ellerston Capital reports that GDG finished the month up over 20% after an exceptional quarterly result.
- All core business lines are performing strongly, contributing to the positive outcome.
- The investment bond business saw significant acceleration, generating $209m in sales inflows during a typically quieter period.
- Lonsec exhibited robust product growth in research, driven by the expansion of higher margin private market offerings.
- Lonsec Investment Solutions is viewed as the jewel in the crown, with Funds Under Management (FUM) approaching $12b, reflecting both market performance and healthy inflows.
- In collaboration with Blackrock and AMP, GDG has finalized a managed account proposition, which will provide tailored managed solutions at scale.
- This initiative is expected to accelerate flows in the rapidly growing sub-segment of managed accounts.
Ellerston Capital
30 June 2024
$2.38
Summary
- GDG had a solid June, finishing up almost 20%.
- Company undertook a capital raise and announced acquisition of remaining stake in Lonsec for just under $200m.
- Lonsec has performed well since GDG's initial investment in FY21, with a revenue CAGR of 24%.
- Acquisition increases exposure to the high-growth managed accounts market, predicted to grow at 17% CAGR over the next 5 years.
- Relinquishing Pooled Development Fund (PDF) status deemed worthwhile for potential upside from full ownership of Lonsec.
- Investment bond business continues to perform strongly, gaining market share.
- Stock remains one of Ellerston Capital's high conviction positions.
Ausbil Investment Management
30 June 2024
$2.38
Summary
- Generation Development Group (GDG) had a strong quarter, returning +33.3% from its placement price.
- GDG has acquired the remaining shares in Lonsec, enhancing its portfolio.
- Led by Chair Rob Coombe and CEO Grant Hackett, GDG is a specialist provider of financial solutions.
- The company is historically recognized for its leading investment bond product.
- The acquisition of Lonsec provides strategic exposure to the fast-growing managed account market.
- Ausbil believes the full acquisition of Lonsec is strategically sound.
- This positioning is expected to lead GDG into a period of strong growth.
Paradice Investment Management
30 June 2024
$2.38
Summary
- Paradice Investment Management initiated an overweight position in Generation Development Group Ltd (GDG) during the quarter.
- The stock has shown strong performance, with the company delivering operationally and experiencing accelerating flows into the investment bond business.
- Proposed Australian superannuation tax changes enhance the attractiveness of investment bonds, potentially leading to significant flow acceleration over the next 24 months.
- This potential acceleration is not currently reflected in the stock price, according to the fund manager.
- The strategic move to 100% ownership of Lonsec is seen as beneficial, with expectations of double-digit EPS accretion.
- While the annuity business is currently loss-making, Paradice Investment Management supports this long-term strategy despite the time required to gain traction.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Investment Ideas Scanner
Why fund managers back ReadCloud (ASX:RCL): strong VET‑in‑Schools growth and undervalued upside
Why fund managers are taking profits in Telstra (ASX:TLS) after higher dividends and buybacks rewarded shareholders
See why Endeavor backed Universal Biosensors (ASX:UBI) after $10M April 2024 capital raise
Why fund managers back Greatland Resources (ASX:GGP) after Jan 2026 production beat
Why fund managers are locking gains in Fortescue (ASX:FMG)
Why fund managers see Dimerix (ASX:DXB) as a high-risk high-reward opportunity in rare kidney disease treatment
Pacific Current (ASX:PAC) — NAV discount, buybacks and takeover/wind‑up upside
Fund managers on Coronado (ASX:CRN): restructuring, cost cuts & project progress
Why fund managers hold Woolworths (ASX:WOW) as a core defensive with improving sales leadership and disciplined margins
Why fund managers back Healius (ASX:HLS): turnaround after Lumus sale
Frequently Asked Questions
Who is investing in Generation Development Group Ltd (ASX:GDG)?
Fund managers including Ausbil Investment Management, Yarra Capital Management, Datt Capital, River Capital, Pengana Capital Group, Firetrail Investments, QVG Capital, Ophir Asset Management, Blackwattle Investment Partners, Wilson Asset Management, Ellerston Capital, Paradice Investment Management and Tyndall Asset Management have invested in Generation Development Group Ltd (ASX:GDG).
Why do fund managers invest in Generation Development Group Ltd?
Fund managers invest in Generation Development Group Ltd due to its competitive position in the rapidly growing managed accounts and investment bonds markets. The strategic acquisitions of Evidentia and Lonsec enhance its service offerings and market share, supported by strong earnings growth and high net inflows. Upcoming regulatory changes may increase the appeal of its investment products. Additionally, GDG's diversified portfolio and favorable cash flow structure provide a compelling risk/reward profile for investors.
What happened to Generation Development Group Ltd (ASX:GDG)?
Fund managers are investing in Generation Development Group Ltd due to its strong management under Grant Hackett and significant growth potential in its investment bonds and managed accounts business. Recent comments highlight robust momentum in client flows, upcoming large mandate awards, and a promising strategy in the annuity sector, particularly with super funds expected to shift toward outsourced portfolio solutions. This positions GDG well for incremental earnings growth and new revenue opportunities.
What is the short interest in Generation Development Group Ltd (ASX:GDG)?
The short interest in Generation Development Group Ltd (ASX:GDG) is 3.77% which makes it the 61st most shorted stock on the ASX. Of the 399.6M shares that Generation Development Group Ltd has on issue, 15.1M have been sold short.
What does Generation Development Group Ltd (ASX:GDG) do?
Generation Development Group Ltd. engages in the provision of development capital to financial sector businesses. It operates through the following segments: Benefits Funds Management and Funds Administration, Other Business, and Benefits Funds. The Benefits Funds Management and Funds Administration segment includes administration and management services to the benefits. The Other Business segment refers to the investment associates of the company. The Benefis Funds segment focuses on the operation of results and financial position of the benefits funds. The company was founded in 1991 by Martin Edward Ryan and is headquartered in Melbourne, Australia.
faqs
q1
q2
q3
q4
q5
bottom of page