Capital Group extends reach into Italy through Südtirol Bank deal

Il Duomo MilanItalian investors will have more options to access investment management company Capital Group's funds due to a new distribution agreement with Südtirol Bank.

The distribution agreement is Capital Group's third in Italy after similar deals with FinecoBank and Online Simn. The latest agreement will allow Capital, one of the world's largest asset managers with $1.4 trillion (€1.2 trillion) in assets under management, to reach private investors in the industrial heartland of northern Italy including Milan, as well as southern cities such as Naples and Rome.

Südtirol Bank is an independent bank in Italy with a network of 160 financial advisers. It serves both retail and corporate clients.

Since opening its first office in Milan in 2013, Capital has increased its workforce to four.

Grant Leon, head of sales for Capital's financial institutions and intermediaries business, says: "Our new relationship with Südtirol Bank complements our existing relationships in Italy and helps us to reach new investors across an expanded geographical area."

Italy, the third largest economy in the Eurozone, looks set to emerge from its longest recession on record. The latest available official statistics show industrial production increased 0.3% in November compared to the previous month.

Another hopeful sign came on Monday, Fiat Chrysler announced that it is hiring a thousand workers at its Melfi plant in southern Italy.

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