Hibernian Investment Managers (HIM) have introduced a new EuroBanks Fund, the first Irish fund to specialise in the European financial sector.

The fund will be invested in leading financial groups across the euro zone like Deutsche Bank and Allianz in Germany, Societe Generale-Paribas and Axa-UAP in France and ABN Amro in the Netherlands. It will also include AIB and Bank of Ireland.

The financial sector accounts for more than 35 per cent of stock markets in the euro zone.

"With interest rates running so low, we believe medium-term investors will benefit substantially more from investing their money in the banks themselves rather than in their low-yielding deposit accounts," said Mr Pat McGorrian, managing director of Hibernian Investment Managers.