Mount Street is to take over the management of a €17 billion bond portfolio from Dexia, the former banking institution that is now a 99.6% state-owned Belgian-French group.
Mount Street – through its regulated Mount Street Portfolio Advisers GmbH – will gain a team of eight bond management experts and undertake a range of services including asset management, trade execution, portfolio market data and valuation, and strategic advisory.
The portfolio comprises of a range of bonds, financial instruments and credit products from issuers in the public finance, local municipality, utility, social housing and related sectors, across various jurisdictions in Europe and North America.
Mount Street said the mandate built on its “established outsourcing track record” for blue chip institutions.
In 2017, it acquired EAA Portfolio Advisors from Erste Abwicklungsanstalt, which included the management of €22 billion of funds, and in February 2022, Mount Street was appointed by Aviva Investors to provide debt servicing functions on a portfolio of £30 billion.
The transaction between Dexia and Mount Street enables Dexia to pursue the management of its loan and bond portfolio in run-off “with a solid partner and in an orderly manner for the ensuing years”.
Stephan Plagemann, chief financial officer at Mount Street, said: “There remains a need for institutions in resolution to review their structural set-up from time to time as the underlying portfolios are scaled down, while still having to satisfy the requirements of their various stakeholders. We are very excited to have the opportunity to partner with Dexia and provide innovative solutions throughout this process.”
Pierre Crevits, CEO at Dexia, said the partnership reflected Dexia’s desire to ensure a future for its bond portfolio management experts within the Mount Street Group, while at the same time securing the continuity and quality of its portfolio management services.
