GDG confirms PDF status and probably a factor for the share price rally

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PDF STATUS AT RISK

Generation Development Group Limited (ASX: GDG) is registered as a pooled development fund (PDF) under the Pooled Development Funds Act (the PDF Act).

Various taxation concessions are available to both GDG and its shareholders as a consequence.

GDG announces that the Innovation Investment Committee of Industry, Innovation and Science Australia (the PDF Committee) has advised that it has made an in principle decision to revoke GDG's PDF status.

The basis for this is that the PDF Committee has formed an in principle view that there are various requirements of the PDF Act which are not satisfied in relation to GDG.

The PDF Committee has invited GDG to provide submissions by 22 July 2022 why its PDF status should not be revoked.

GDG disagrees with the in principle views of the PDF Committee and intends to make strong submissions by the requested date that the PDF Act requirements are satisfied and that there is no basis for a revocation.

Notes: Was wondering if that deferred tax on the cashflow statements had something to do with this tax concession from being a PDF (last col 2021).

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Slide deck presentation for Generation Life and new product launch

https://gendevelopmentgroup.com.au/wp-content/uploads/2022/04/Generation-Life-LifeIncome-webinar-and-presentation.pdf

Looking at the previous updates I can see why Generation Development Group is trading at a premium. Double digit growth in FUM quite appealing even if earnings is slim.

March Quarter Update

Good update from Generation Life.

Going back to the first half results, they achieved revenue of 17.5m from inflows of 344m

For some reason GDG did not put the revenue update, so my guess is they achieved 119*17.5/344=6.05m in revenue for the quarter.

If they get the same numbers for the final quarter, then Generation life is probably trading at Price / Sales of about 10 (300m/30m). So it is fairly priced at this point in time given the price spike today.

One of the positives I can see is they are launching a new annuity business called LifeIncome. Also Lonsec FUM has grown well too.

Just like in long distance swimming, Grant Hackett seems to have done well at the helm of Generation life. But like AEF, this is more of a growth stock especially last year they made a net loss before tax but managed to scrape a profit after adding back some tax benefits.

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