Generation Development Group's stock surged 5.49% during intraday trading on Friday, following the announcement of a significant memorandum of understanding for its retirement product solutions.
The company's unit Generation Life has entered into an MoU with retail super fund Colonial First State and BlackRock, under which CFS intends to integrate GenLife's investment bonds and investment-linked retirement income solutions onto its platforms. Analyst firm Jefferies views this deal as creating another growth engine for GDG that transitions its products from adviser-direct channels into an institutional platform environment.
Jefferies highlighted that Generation Development stands to benefit from structural changes in Australia's retirement landscape, where retirement-phase assets are projected to reach A$1.75 trillion to A$2 trillion by 2035. The brokerage firm rates the stock as "buy" with a price target of A$6.35, noting that platform-embedded turnkey solutions of the kind GDG provides will be favored as the adviser population is expected to halve to around 15,000.