Generation Development Group shares dip despite funds growth
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The news: Investment company Generation Development Group (GDG) was one of the worst performing ASX 200 companies in early trade after reporting net inflows of $1.5 billion for the June quarter.
The numbers: GDG shares were down 2.2% to $5.34 at 11am AEST, having more than doubled in value over the last 12 months.
GDG's funds under management (FUM) grew 10.4% from $26.8 billion in March to $29.6 billion in June, marking a 49% rise year over year.
The company achieved net inflows of $1.5 billion, up 72% compared to the prior corresponding period.
The context: GDG's chief executive Grant Hackett told investors that the group's new organisational structure, including the integration of newly acquired Evidentia and Lonsec Investment Solutions, came into effect on 1 July.
What they said: "We are exceptionally pleased with the speed and precision of our business restructure, which has provided clarity of purpose for each team and created an environment designed for success," Hackett said in the company's quarterly update.
"While this has slightly increased GDG's cost base, we are confident that the enhanced accountability and performance focus will deliver significant long-term returns."
The source: ASX
