Jefferies keeps 'buy' on Australia's Generation Development as unit tops market share
BUZZ-Jefferies keeps 'buy' on Australia's Generation Development as unit tops market share ** Jefferies keeps Australian wealth products provider Generation Development GDG.AX at "Buy", citing unit Evidentia's clear lead in the managed accounts industry and higher-than-perceived entry barriers
** Brokerage says the managed accounts industry has reached ~A$300 billion in funds, and scale is increasingly concentrated among a handful of issuer-managers
** Jefferies argues "Evidence does not support a wave of boutiques - period", saying checks with industry participants do not back claims of widespread new entrants
** Estimates a new entrant may wait ~24 months for first inflows and burn A$3 million to A$5 million before turning profitable
** Stock down 37.2% YTD as of last close
(Reporting by Kumar Tanishk in Bengaluru)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))
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