Mandatum is adding a new opportunistic MAMCO II credit fund to its offering, which operates in both public and private debt markets in the Nordics and more broadly in Europe*.* The fund targets attractive risk-adjusted returns and higher return potential than traditional high yield markets.
The closed-ended and invitation-based fund leverages Mandatum’s deep market expertise and extensive network to identify the most attractive investment opportunities in terms of risk-return ratio in various market environments. The fund has gathered over 200 million euros in initial investment commitments, and the fund’s first closing is scheduled for March 2026. The fund’s predecessor, launched in 2020, exceeded its return targets as the investment period concludes at the end of 2025.
What a vague description of the fund’s investment strategy! Institutional investors clearly have confidence, as over 200 million has already been invested. Apparently, the fund’s operations won’t be explained any further to retail investors.
Money tied up for years and the target gross return was around 12%, I believe. As I understand it, the excess return was meant to be achieved by playing special situations. Personally, this made me wonder if we are reaching a point with Manta where the strongest cards have already been played and they are now starting to launch weaker products to the market…
The firm has gained a lot of momentum first from the interest rate hike cycle and then from the decrease (the values of fixed income investments rose sharply as rates fell). Now that we are apparently heading back towards a longer period of low interest rates, will Manta’s products continue to be as attractive compared to other investment options (mainly stocks)?
The world’s largest securities market is the bond market. Much larger than the stock market. Institutional investors are already forced to invest in bonds due to regulation. An innovative player with a good track record certainly has good potential to continue growing its AUM in the future. Granted, Manta’s valuation is starting to reach its limits, but that is another story.
Yesterday, OP Pohjola added Mandatum to its “OP Best Picks” list. Below are three points, a direct quote:
Dividend potential is undervalued 3 x why?
• In our view, consensus underestimates the company’s dividend-paying capacity. We expect a dividend of EUR 1.00 (cons: EUR 0.80) for 2025, which, if realized, we estimate will provide a boost to the share price in connection with the Q4 report (Feb 12). Based on our forecast, the dividend yield would be a staggering approximately 15%.
• Mandatum has a strong track record of robust growth in assets under management (AUM) within its wealth management business compared to the industry. With the company’s cost pressures being very moderate at the same time, the operating leverage is working excellently.
• The company’s structural change continues as the with-profit (guaranteed interest) business shrinks and the capital-light business grows. This structural change makes the operations more attractive and predictable, while simultaneously releasing significant capital. We expect Mandatum to pay very high dividends for the next two years as well, even though the dividend peak will be reached in 2025.
Kassu and Sale’s warm-up, as Manta reports its results on Thursday, Feb 12.
We expect the company to report a higher result than in the comparison period. We estimate that sales of investment products continued their positive momentum, and that profit growth in asset management, which is central to the company’s value, remained strong. In the report, our focus is particularly on the outlook for new sales, as the roadmap for the balance sheet and profit distribution for the coming years is very clear following the updated strategy and the sales of PE (Private Equity) investments. We will review Mandatum’s results in a live broadcast starting at 08:25 am on InderesTV.
