Amundi Earnings: Market Momentum and Sound Capital Allocation Decisions

Narrow-moat Amundi reported a solid 6% year-on-year earnings increase for first-quarter 2024. For the fourth consecutive quarter, net client inflows grew, complemented by a tailwind from favorable market valuations, resulting in an all-time high assets under management, or AUM, of EUR 2.116 trillion. Despite the market shift toward lower-margin passive strategies, Amundi booked net inflows in its active mandates, with a substantial portion flowing from retail clients. Net inflows into higher-margin areas should support fee margins in the coming periods. We applaud Amundi's cost control as it once again reported an industry-leading adjusted cost/income ratio of 53%, keeping costs below revenue growth (3.3% versus 3.8%, respectively, for year-on-year comparable).