Generation Development Group (GDG) has reported strong growth for the December quarter on the back of Evidentia’s 36 per cent increase in funds under management (FUM).
GDG acquired 100 per cent of managed account provider Evidentia in February 2025 for $352 million, leading to the creation of a managed account provider of $25 billion in FUM.
In July, Evidentia merged with Lonsec Investment Solutions (LIS) and Implemented Portfolios to form Evidentia Group, which focuses on managed accounts, managed discretionary accounts and private market solutions.
These acquisitions saw GDG post a 49 per cent increase in Evidentia’s FUM to $29.6 billion in its FY25 results. This jumped even further in the September quarter, hitting $32.6 billion FUM.
Continuing this pattern, Evidentia saw inflows of $1.6 billion for the three months to 31 December, ending the year with $34.5 billion total FUM and marking a 36 per cent increase on the prior corresponding period (PCP).
This growth was supported by the finalisation of a long-term alliance with Ironbark Asset Management, which GDG group chief executive Grant Hackett said will lead to significant inflows and mandate opportunities in the future.
Evidentia Group chief executive Michael Wright said the newly-formed alliance with Ironbark will broaden its managed account and investment capabilities and drive better client outcomes across consulting, managed discretionary accounts (MDAs), portfolio implementation and trustee services.
The group also completed its acquisition of Encore Advisory Group in the December quarter, expanding its offering beyond investments and branching out into practice management and business consulting, which Wright said strengthens its value proposition to advice firms, as well as core-satellite partnership with Vanguard.
In investments, Evidentia launched six SMA/MDA solutions, representing around $1.6 billion in funds under advice (FUA), in addition to winning several new clients, which provided a further boost of $1.8 billion FUA. Schemes for these clients are set for launch in FY26.
Despite the positive growth, Hackett said the quarterly inflows were moderated by the timing of scheme commencements.
“Several contracted schemes [are] now scheduled to commence in Q3, providing a high degree of confidence of strong inflows in the second half [of FY25].”
Looking at the Lonsec Research and Ratings business, which sits separate from LIS, it has now conducted research on 1,880 products, up slightly from 1,836 at the end of FY25, and 49 funds were onboarded.
It also saw good initial interest in rating of SMA products which has helped build traction in its multi-asset sector.
Capping off the calendar year, GDG announced the appointment of Andrew Mellor as chief financial officer to replace Terence Wong who is set to depart at the end of FY25. Mellor will officially take over the role from 2 March.
