Residential Fund: Hibernian has just launched a European Residential Property Fund which will concentrate initially on the Eastern European countries which are new members of the EU or are waiting to join.

The European Residential Property Fund says it is the first to offer investors an indirect route into residential property investment: most funds offering access to property investment concentrate on commercial property only. The Hibernian fund will invest initially in city centre apartment blocks in Warsaw and Prague and in holiday accommodation in Croatia and Bulgaria.

The fund is only available as part of Hibernian's pension plans but will also be available to life investors from early next year.

According to Hibernian, the advantages of indirect investment over buying actual residential property in an area like eastern Europe include risk diversification, economies of scale, off-the-plans purchasing, local expertise, and professional currency management. John Donaghy, product manager with Hibernian, says that it expects the fund to perform in excess of 6 per cent per year. Hibernian's partners in the fund include fund manager Tri Investments, investment adviser Morley Fund Management and property advisers King Sturge.