Generation Life recorded $3.59 billion in funds under management (FUM) as at 30 September, a 33 per cent increase from September 2023.
The firm saw record inflows of $209 million, a 40 per cent increase on the prior corresponding period. Net inflows into investment bonds stood at $159 million.
Grant Hackett, chief executive of subsidiary Generation Life, revealed that 1Q25 marked the first time that Generation Life surpassed $200 million in investment bond inflows in a quarter, alongside an increase in lifetime annuity sales.
Active financial advisers advising on LifeIncome continued to grow, he said, and the firm saw sales increase by 28 per cent from the June quarter, taking FUM for LifeIncome to $42 million.
“Generation Life has had an exceptional start to the 2025 financial year, achieving the highest inflows on record,” Hackett said.
“The stronger performance is attributed to several drivers, including the desire for more financial advisers to consider investment bonds as alternative to other investment structures due to the tax arbitrage and vast estate planning benefits.”
He confirmed that the proposed changes to superannuation, which are expected to take effect on 1 July 2025, have similarly supported the rationale for more investors to consider this product structure.
“Our active financial advisers continue to increase quarter on quarter, which is another strong predictor of sales inflows,” he said.
“Even though we continue to see all of our key performance indicators trend in the right direction, there is still a significant amount of opportunity to increase our penetration with both existing and new financial advice firms,” Hackett said.
During the quarter, Generation Life’s parent company, GDG, completed the acquisition of the remaining interest in Lonsec Holdings that it did not already own.
In an update on Monday, Generation Life revealed that Lonsec Investment Solutions (LIS) saw its FUM increase by 10.16 per cent to $11.7 billion over 1Q25, driven by a combination of strong inflows and market growth.
Generation Life also highlighted other key milestones, including the finalisation of a managed account proposition by LIS in collaboration with BlackRock and Charter, aimed at delivering tailored managed portfolios at scale. Additionally, five new customised managed account solutions were launched in the market during the quarter.
GDG initially invested in Lonsec in September 2020. However, the transition from a 49.2 per cent stake to full ownership provided GDG with an opportunity to gain complete control of a well-known asset, positioning it for significant growth potential in the future, it said earlier this year.
