GDG managed account growth strong post-Evidentia deal
Having acquired Evidentia with the goal of building its managed accounts division, Generation Development Group (GDG) has reported a 49 per cent rise in managed account funds under management (FUM) in FY25.
GDG acquired 100 per cent of managed account provider Evidentia in February 2025 for $352 million as it believes the managed account market is set to grow at 15 per cent per annum to $474 billion by 2030. The acquisition led to the creation of a managed account provider of $25 billion in FUM.
It subsequently merged Evidentia with Lonsec Investment Solutions (LIS) and Implemented Portfolios to form a larger Evidentia Group which focuses on managed accounts, managed discretionary accounts, and private market solutions.
In its FY25 results, GDG said its FUM in managed accounts grew 49 per cent during the year to $29.6 billion, with LIS up 39 per cent and Evidentia up 60 per cent, each reaching $14.8 billion in FUM currently.
It reiterated its forecast for managed account growth and even revised it upwards to 17 per cent per annum.
“The managed account sector represents a long-term growth opportunity with the industry forecast to expand at an annualised growth rate of between 15–17 per cent through to FY2030. The combination of LIS and Evidentia gives GDG unmatched scale in this segment and provides us with a platform to deliver better outcomes for advisers, clients and shareholders,” it said in the annual report.
“We will focus on maximising the benefits of scale, winning new adviser relationships and supporting practices to improve their efficiency and client outcomes.”
With a forecast for 2030, it described how it is targeting $138 billion in tailored SMAs via Evidentia, $144 billion in off-the-shelf SMAs via LIS, $110 billion in MDAs via Implemented Portfolios, $55 billion in internalised SMAs, and $27 billion in other products to reach $474 billion.
Looking at the Lonsec Research and Ratings business, which sits separate from LIS, it increased 18 per cent to $72.1 million, while net profit after tax (NPAT) was up 53 per cent to $19.8 million. The revenue growth was underpinned by out-of-cycle research, with the number of products researched rising from 1,732 to 1,836.
In the upcoming financial year, it will expand product coverage, launch new initiatives, and extend its investment reach domestically and internationally.
AUTHOR
Laura Dew
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