An increased number of products rated following the boom in private markets funds have seen revenue at Lonsec Research & Ratings rise to $21.4 million.
In the results for parent company Generation Development Group (GDG), the firm said revenue at Lonsec Research & Ratings rose from $19.4 million a year ago to $21.4 million.
Some 68 per cent of this was Lonsec Research, 20 per cent came from SuperRatings, and 12 per cent came from investment research platform iRate.
The revenue increase, the group said, was on the back of increased numbers of products rated following the continued expansion of its private market offerings with 1,783 products researched during the half.
Moreover, Lonsec Investment Solutions reported 19 per cent growth in funds under management (FUM) of $12.7 billion, supported by the launch of 13 new managed accounts options over the period. Revenue was $14 million, up from $11.8 million a year ago.
In February, GDG announced its acquisition of 100 per cent of Evidentia Group Holdings for $320 million, marking a significant expansion in the managed accounts sector.
Evidentia, a key provider of investment management and tailored managed account solutions in Australia, will merge with GDG’s Lonsec Investment Solutions and Implemented Portfolios, under the name Evidentia Group, further strengthening its position in the growing managed accounts market – currently valued at over $200 billion and projected to reach $474 billion by 2030.
The deal saw the Lonsec Group businesses realigned into Lonsec Research & Ratings while the Lonsec Investment Solutions business combined with Evidentia.
Expounding on this, GDG CEO Grant Hackett said the firm expects to see strong continued growth in Lonsec’s and Evidentia’s self-managed accounts business.
“While we had $12.7 billion to close the calendar year at Lonsec Investment Solutions, combining that with the Evidentia acquisition that we did a couple of weeks ago, that’s taken us to over $25 billion in funds in the managed account space, and we really are the market leader in there,” Hackett said.
“We’ve got plenty of great ideas and [are] already sort of executing very well with both of those teams.”
Looking ahead, GDG affirmed that Generation Life and the integration of Lonsec and Evidentia remain key priorities.
“We expect to see continued strong growth in Lonsec’s and Evidentia’s Self-Managed Accounts business,” it said.
