Generation Development Group shares plunge despite FUM growth
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The news: Shares in Generation Development Group tanked in morning trade even as the investment company reported a 5.5% quarterly uptick in funds under management (FUM).
The numbers: GDG shares were down 13.6% to $4.19 at 11:45am AEST.
The company's FUM grew from $25.4 billion in December to $26.8 billion in March, with newly acquired Lonsec Investment Solutions contributing $13.3 billion. The total increase marked a 39% rise compared the prior corresponding period.
GDG reported net inflows of $685 million, representing a 325% rise year over year.
The context: GDG's chief executive Grant Hackett told investors that all of the group's businesses contributed to growth during the quarter, despite continued market volatility.
He also noted the inclusion of GDG on the ASX 200 index from today.
The source: ASX
