DWS Fourth-Quarter 2021 Results--Moat Emerging?

No-moat DWS reported another robust set of results for fourth-quarter 2021, growing net profit by 59% year on year to EUR 260 million. Net profit for the quarter also came in substantially ahead of the EUR 183 million the consensus of analysts collected by DWS expected. We have been critical in the past about DWS’ ability to hold on to client assets; this has also been one of the main reasons why we have not awarded DWS a moat rating. For the 2021 fiscal year, DWS recorded net new money inflows of EUR 48 billion--of which EUR 42 billion was into noncash funds. The positive inflows continue a trend of positive net inflows that started in 2019. If DWS can continue on this course in a more challenging fiscal 2022, it could force us to revisit our no moat rating for the firm. We maintain our EUR 56/share fair value estimate.