CEO's review
CEO's review
On this page, you can find the latest review of the CEO.
CEO's review Q2 2026
CEO Petri Niemisvirta
We delivered a solid performance in the second quarter and results were strong across the board. The profit before taxes of the capital-light business at the core of our strategy increased by 32 per cent year-on-year, which I am very pleased with. The favourable market environment was reflected in Mandatum’s client assets under management, which increased by 16 per cent from last year to a record EUR 16.7 billion. We have succeeded in increasing the client assets under management from one quarter to the next, and the rise in assets was directly reflected in the fee result, which grew by 21 per cent during the quarter. Net flow remained on par with the previous year at EUR 164 million.
The good momentum in international institutional asset management continued with client assets under management increasing by 19 per cent. International sales accounted for the majority of Mandatum’s net sales in the second quarter. The growth once again came predominantly from Sweden. We also managed to secure our first clients from Italy during the quarter. Thanks to a new market and broader clientele, we are expanding our foothold in Europe even further. Finnish private wealth management client assets under management increased by 18 per cent from the previous year, reaching a new billion-euro milestone at over five billion euros.
We have recently invested in expanding our asset and wealth management business, including through new recruitments. These measures are currently reflected in higher costs, but we believe that they will accelerate growth and serve to further strengthen our position in the asset and wealth management field in upcoming years.
The Group’s profit before taxes more than doubled from the previous year to EUR 79 million. Earnings increased especially due to a EUR 55 million net finance result in which the return on fixed-income investments grew as a result of falling interest rates and tightening credit spreads. Alternative investments, and especially private equity investments, also performed well. However, we continued to reduce the risk level of with-profit balance sheet investments in line with our strategy during the quarter, which not only frees up extra capital but will also reduce the fluctuation of market values and earnings volatility in the future.
More than EUR 400 million in new funds
Past success in asset and wealth management gives a company credibility, but a good track record is no guarantee of future success. That is why we have continued to actively develop new products. During the first half of the year, the Mandatum Credit Opportunities II fund raised, in connection with its first closing, more than EUR 300 million, and the Private Debt VIII strategy raised more than EUR 100 million in investment commitments. The successful raising of assets is evidence of investors’ interest and confidence in our expertise. The investment commitments will affect Mandatum’s net flow as the investments are made and the capital is called – typically within a few years. The market volatility early in the year has already afforded us interesting investment opportunities.
The success of Mandatum’s funds continued to receive international recognition when the Mandatum Managed Futures fund received the UCITS Performance of the Year award at the Hedgeweek European Awards. This recognition adds to the accolades received by the company earlier this year. Mandatum’s various funds have received recognition in numerous international comparisons in recent years, raising our profile outside of Finland and thus accelerating our international growth.
In our corporate clients business, sales of both pension insurance and personnel funds remained at a good level. In the retail clients business, our continued co-operation with the Pohjantähti Mutual Insurance Company in particular supported risk insurance sales, and the sale of investment products also began to grow. Client assets under management increased in the favourable market environment not only in asset and wealth management but also in the corporate and retail clients businesses, in which the equity weight of investments is typically higher than in asset and wealth management. This is one proof of the strategic significance that these business areas hold for the company’s profitability.
All in all, we are headed into the second half of the year from a solid position and continue our ambitious efforts to achieve our vision of becoming the fastest growing asset and wealth manager in the Nordics.
Petri Niemisvirta
Chief Executive Office