Key Highlights

  • Generation Development Group Limited (ASX:GDG) shares go ex-dividend on 4 September 2026, with the final Dividend payable on 6 October 2026.
  • The Board declared a fully franked final dividend of 1 cent per share, taking the full-year dividend to 2 cents per share.
  • FY26 underlying NPAT increased 21 per cent, while Group Revenue grew 23 per cent and Group FUM rose 37 per cent to $46.5 billion.
  • Statutory NPAT declined 10 per cent to $31.9 million, even as underlying NPAT reached $40.7 million.

Generation Development Group Limited, trading on the ASX under the code GDG, will move to ex-dividend status on 4 September 2026. The Board has declared a fully franked final dividend of $0.01 per ordinary share, taking the fully franked full-year dividend to $0.02 per ordinary share. The final dividend is scheduled for payment on 6 October 2026.

FY26 Financial Performance

For the full year ended 30 June 2026, Generation Development Group reported underlying NPAT of $40.7 million, an increase of 21 per cent on the prior year. Group revenue, excluding interest income, grew 23 per cent to $178.7 million. Statutory NPAT, however, declined 10 per cent to $31.9 million, a divergence from the underlying result that reflects one-off and non-underlying items excluded from the proforma presentation.

Group funds under management increased 37 per cent to $46.5 billion, comprising Generation Life Investment Bond FUM of $5.95 billion, up 35 per cent, and Managed Account FUM of $40.5 billion, up 37 per cent. This figure excludes $76 million of LifeIncome FUM. Record net inflows for the Group reached $9.7 billion, an increase of 19 per cent on the prior year. Cash and cash equivalents, excluding client monies held in trust of $17.3 million, rose 8 per cent to $97.5 million.

Divisional Performance

Generation Life delivered record annual gross sales exceeding $1.5 billion, with FUM growing 35 per cent to $5.95 billion. The company attributed sustained Demand for investment bonds to structural retirement, Wealth transfer and tax-efficiency trends, alongside the implementation of Division 296 Superannuation tax measures, which management said further strengthens the long-term case for investment bonds and retirement income solutions.

Evidentia Group completed the integration of Evidentia, Lonsec Investment Solutions and Implemented Portfolios into a single managed accounts platform during FY26. Managed account FUM rose to $40.5 billion at year end, supported by net inflows of $8.4 billion. Lonsec Research and Ratings expanded research coverage by 9 per cent to 2,001 products, while iRate subscribers increased 13 per cent to 5,629.

Cost Growth and Operating Leverage

The company noted that Operating Expense growth during FY26 was driven by continued investment in people, technology and capability, primarily within Generation Life and Evidentia, positioning the Group for future growth and improved Operating Leverage over time. Individual product revenue margins across the Group are expected to remain broadly stable in FY27, with underlying operating expense growth expected to be broadly in line with FY26.

Strategic Partnerships and FY27 Outlook

During the year, Generation Life announced a Partnership with Colonial First State, alongside its existing strategic alliance with BlackRock, both intended to broaden future retirement market distribution opportunities and support product innovation. The Group said it expects continued growth in FUM in FY27, subject to market conditions, supported by ongoing adviser adoption and market penetration, with its Balance Sheet supporting continued disciplined investment in growth initiatives and strategic partnerships.

Conclusion

Generation Development Group's FY26 result was characterised by record net inflows, expanding funds under management and growth in underlying Earnings across its Generation Life, Evidentia and Lonsec businesses, even as statutory NPAT declined 10 per cent against the underlying measure. The fully franked final dividend of 1 cent per share, going ex-dividend on 4 September 2026, brings total FY26 dividends to 2 cents per share as the Group continues to invest in capability and distribution ahead of FY27.