Interim Management Statement

CAPITAL GEARING TRUST p.l.c

Interim Management Statement
for the period 6 April 2010 to 5 July 2010

In accordance with the UK Listing Authority's Disclosure and Transparency Rule 
4.3, Capital Gearing Trust p.l.c (the 'Company') announces its interim         
management statement which relates to the period from 6 April 2010 to 5 July   
2010 and contains information that covers this period, and up to the date of   
publication of this interim management statement, unless otherwise specified.  
                                                                               
Investment Objective                                                           
                                                                               
The Company aims to achieve capital growth in absolute terms principally       
through investment in quoted closed ended and other collective investment      
vehicles, invested in equities or property, with a willingness to hold cash,   
bonds, index linked securities and commodities when appropriate.               
                                                                               
Review of the period                                                           
                                                                               
> Over the period from 6 April 2010 to 5 July 2010, the Company's Net Asset    
Value ('NAV') fell by 0.5% to 2,454.7p. However, this equates to a small rise of
0.4% after adjusting for the dividend paid on 12 July 2010. As a comparator,
the FTSE Equity Investment Instruments Index decreased by 8.2%, although as an
absolute return fund, the actual performance benchmark is cash.                                                      
                                                                               
> The share price has risen to 2,713.0p per Ordinary Share, an increase of 3.2%
from 5 April 2010.                                                             
                                                                               
> On 3 June 2010, in accordance with the UKLA's Disclosure & Transparency Rule 
5.1.2, the Company announced that Mrs Maunder-Taylor had made a disposal of    
shares on 2 June, resulting in the percentage of voting rights held reducing to
below 3% of the issued Ordinary share capital.                                 
                                                                               
> The Company released the Preliminary Announcement of its full year results on
25 May 2010 and published its Annual Report for the twelve months ended 5 April
2010 on 4 June 2010.                                                           
                                                                               
> On 7 July 2010, the Company held its 47th Annual General Meeting. Thirteen   
resolutions were proposed and all were passed on a show of hands.              
                                                                               
> A dividend of 22.5p per Ordinary share was paid to shareholders on 12 July   
2010.                                                                          
                                                                               
Material events and transactions                                               
                                                                               
> The quarter saw a marked reduction in the confidence of markets in growth    
over the next 18 months. In general, equities fell and bonds improved.         
                                                                               
> The asset allocation remained broadly unchanged.                             
                                                                               
> Proceeds were received from the ongoing liquidations in Advance UK, Active   
Capital, Ceres Agriculture and Aberdeen Development Capital.                   
                                                                               
> In bond markets, the Swedish index linked holding was increased, largely to  
take advantage of the cheap currency.                                          
                                                                               
> A further small addition was made to our holding in ETFS Metal Securities Ltd
(physical gold). Although less reliable than index linked bonds, gold can do   
well if financial distress deepens.                                            

Ten Largest Investments

Name                                             % of Portfolio  % of portfolio
                                                      at 5 July      at 5 April
                                                           2010            2010
                                                                               
Treasury 2.5% Index Linked 2013                            6.70            6.62
                                                                               
Switzerland (Govt of) 2% Bonds 2014                        6.19            6.31
                                                                               
USA Treasury 1.75% Index Linked Bonds 2028                 5.79            5.34
                                                                               
Switzerland (Govt of) 3% Bonds 2018                        5.08            5.05
                                                                               
France (Govt of) 5.5% OAT 2029                             4.62            4.74
                                                                               
Germany (Fed Rep) 4.75% Bonds 2028                         4.42            4.45
                                                                               
USA Treasury 2% Index Linked Bonds 2016                    4.40            4.32
                                                                               
USA Treasury 1.375% Index Linked Bonds 2018                4.36            4.23
                                                                               
Treasury 1.25% Index Linked 2017                           3.62            3.53
                                                                               
USA Treasury 2% Index Linked Bonds 2026                    3.30            3.10

The ten largest investments at 5 July 2010 represent 48.48% of the portfolio   
compared to 47.69% at 5 April 2010.                                            

Distribution of Investment Funds of £68,606,069 at 5 July 2010.

Name                     UK       North    Europe   Elsewhere         5       5
                                America                            July   April 
                                                                   2010    2010   
                                                                  Total   Total     
                                                                               
                          %           %         %           %         %       %
-------------------------------------------------------------------------------                              
Investment Trust                                                               
Assets:                                                                        
                                                                               
Ordinary Shares         8.0         2.8       3.7         6.3      20.8    19.8
                                                                               
Endowment Funds         0.3           -         -           -       0.3     0.3
                                                                               
Zero Dividend          12.5           -         -           -      12.5    12.2
Preference Shares                                                                                  

Other Assets:                                                                  
                                                                               
Index Linked           11.7        21.9       2.0           -      35.6    33.4
                                                                               
Fixed Interest          2.5           -      24.0           -      26.5    26.5
                                                                               
Floating Interest       0.7           -         -           -       0.7     0.7
                                                                               
Cash                    3.6           -         -           -       3.6     7.1
-------------------------------------------------------------------------------

Performance

                                 At 5         At 5          At 5          At 5                             
                                 July        April       October         April               
                                 2010         2010          2009          2009        
                                                                               
NAV per Ordinary Share       2,454.7p     2,467.4p      2,355.8p      2,125.4p    
                                                                               
Share Price per Ordinary     2,713.0p     2,630.0p      2,475.0p      2,370.0p    
Share                                                                          
                                                                               
FTSE Equity Investment        5,131.2      5,592.2       4,927.3       3,824.2     
Instruments Index                                                              

Past performance is not a guide to future performance. The Board is not aware  
of any significant events or transactions which have occurred between the 'as  
at' date of the financial information and the date of publication of the IMS   
which would have a material impact on the financial position of the Company.   
                                                                               
Further information is available on the Company's website,                                                      
www.capitalgearingtrust.com.                                                   
                                                                               
Please contact [e-mail] or,                              
CG Asset Management Limited at 25 Moorgate, London, EC2R 6AY.                  
                                                                               
Date: 15 July 2010