This is a high-risk fund that aims to double the capital growth in the FT-SE 100 index. Losses on the index will also be magnified twice over as well.
Funds like this have to carry special risk warnings.
John Govett believes that since the outlook for UK shares is encouraging, the potential for loss is reasonably small.
The fund will invest in futures contracts that track movements in the FT- SE 100 Index. But rather than buying just enough to let investors' money move in line with the index, the fund will buy extra contracts - enough to double gains and losses.
John Govett already has a range of ungeared funds that simply track various world indices. Fund managers have only been allowed to offer futures funds since September 1991. The new fund is the first in the country to go a step further with gearing, and increase investors' opportunity for profit - and losses - through gearing.
The minimum investment is pounds 5,000. The initial charge is 5.25 per cent and the annual is 1 per cent. More information is available on 071-407 7888.Reuse content