Summary
The fund managers believe that Generation Development Group Ltd (GDG) is well-positioned for significant growth, particularly following its strategic acquisitions of Evidentia and Lonsec. In their opinion, these acquisitions enhance GDG's competitive edge in the fast-growing managed accounts market, which is projected to expand at a 20% CAGR. Despite a recent 17.3% share price decline due to a softer than expected FUM update from Evidentia, many managers see this as a temporary setback. They highlight strong inflows in GDG's investment bonds business, which is benefiting from potential changes to superannuation legislation, making it an attractive alternative for larger super balances. The strategic partnership with BlackRock to develop retirement income solutions is also viewed positively, as it positions GDG to capitalize on demographic trends favoring retirement income products. Overall, the fund managers maintain a high conviction in GDG's long-term growth trajectory, despite acknowledging risks related to valuation and market sentiment.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Source: Trading View
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Commentary From The Managers
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.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Commentary From The Managers
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
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.
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.
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.
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.
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.
Ausbil
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.
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.
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.
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.
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.
Ausbil
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.
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
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.
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.
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.
Ausbil
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.
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.
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.
Ausbil
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.
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.
Ausbil
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.
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.
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.
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
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.
Ausbil
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.
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.
Ausbil
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.
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 the remaining stake in Lonsec for just under $200m.
- Lonsec has shown strong performance with a revenue CAGR of 24% since GDG's initial investment in FY21.
- Acquisition increases exposure to the high-growth managed accounts market, expected to grow at a 17% CAGR over the next 5 years.
- Relinquishing Pooled Development Fund (PDF) status seen as a worthwhile trade for potential upside from full ownership of Lonsec.
- Investment bond business continues to perform strongly, gaining market share and growing the category.
- Stock remains one of Ellerston Capital's high conviction positions.
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.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who has invested in Generation Development Group Ltd (ASX:GDG)?
Fund managers including Ausbil, 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 and Paradice Investment Management have invested in Generation Development Group Ltd (ASX:GDG).
Why have investment managers invested in Generation Development Group Ltd (ASX:GDG)?
Fund managers are investing in Generation Development Group Ltd (GDG) due to its strong growth potential in the rapidly expanding managed accounts and investment bonds markets. The recent acquisition of Evidentia has solidified GDG's position as a market leader, enabling it to capture significant market share. Fund managers highlight the company's ability to generate impressive net inflows, particularly in its investment bond business, which benefits from favorable legislative changes regarding superannuation. Additionally, GDG's strategic partnership with BlackRock to develop retirement income solutions positions it favorably for future growth. The company's strong management team and operational performance further enhance investor confidence, making GDG a high-conviction investment in the financial services sector.
What happened to Generation Development Group Ltd (ASX:GDG)?
In June 2025, fund managers expressed mixed views on Generation Development Group Ltd (ASX: GDG), which was trading at approximately $5.69. Yarra Capital Management labeled GDG as a hold, citing its compelling product set and structural growth but noted risks due to elevated valuations and customer churn compared to competitors like Netwealth. Conversely, Datt Capital viewed GDG as a buy, highlighting the pivotal Lonsec acquisition that expands its total addressable market and potential benefits from superannuation system changes. Ausbil emphasized GDG's strong growth trajectory, drawing parallels with successful firms like HUB24 and Netwealth, and noted significant inflows and market leadership in managed accounts. Ophir Asset Management praised GDG's strategic acquisitions, asserting that it has established a substantial competitive advantage and a promising growth outlook.