Amundi Third-Quarter 2021: Stronger-Than-Anticipated Active Inflows Leads to FVE Increase

Narrow-moat Amundi reported a net profit of EUR 321 million for the third quarter of 2021, 46% higher than Amundi reported a year earlier for the second quarter. Quarterly revenue grew by 26% year on year. Performance fees remain elevated compared to the long-run average, but it did decline quarter on quarter. Management fees increased by 18% year on year, outpacing the 9% increase in assets under management which points to wider fee margins. Operating expenses increased by 18% year-on-year, supporting a 3% improvement in the cost/income ratio to 48%. We raise our fair value estimate to EUR 90/share, from EUR 74/share previously, due to the stronger than anticipated flows into actively managed funds which also supports the outlook for fee margins.