Interim Management Statement

CAPITAL GEARING TRUST P.L.C.
Interim Management Statement
for the period 6 April 2014 to 5 July 2014

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 2014 to 5 July
2014 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 2014 to 5 July 2014, the Company's Net Asset
    Value ("NAV"), inclusive of income, decreased by 0.4% to 3,108.27p. As a
    comparator, the FTSE Equity Investment Instruments Index increased by 1.3%,
    although as an absolute return fund, the actual performance benchmark is
    cash.
   
  * The share price was 3,100p per Ordinary Share as at 5 July 2014, a 7.19%
    decrease from 5 April 2014. Since 5 July 2014, it has risenby 2.3% to
    3,173.5p on 4August 2014.
   
  * The Company released its preliminary full-year results for the year ended 5
    April 2014 on 29 May 2014 and published its Annual Financial Report for the
    year ended 5 April 2014 on 9 June 2014.
   
  * On 11 July 2014, the Company held its 51st Annual General Meeting. Thirteen
    resolutions were proposed and all were passed on a show of hands.
   
  * A dividend of 16p per Ordinary share was paid to shareholders on 17 July
    2014.
   
Material events and transactions

  * The portfolio remains broadly spread and defensively positioned with a
    focus on protection against capital loss and inflation.
   
  * Investment Trust liquidity remains very poor and discounts are unusually
    narrow, which in combination suggests considerable downside potential if an
    equity bear market occurs.
   
  * Increasing focus within the Investment Trust portfolio on self-liquidating
    and/or lower beta opportunities to help manage discount risk.
   
  * Recently proposed new issues in the zero dividend preference share and
    convertible bond markets are welcome, as this segment continues to offer
    good risk adjusted returns.
   
  * Government bonds, both nominal and index linked, have performed well in
    their domestic markets, however the strength of Sterling has offset a
    portion of those domestic gains when reflected in the Sterling NAV.
   
Ten Largest Investments

Name                                                      % of             % of 
                                                     portfolio        portfolio
                                                     at 5 July       at 5 April          
                                                          2014             2014
                                                                               
UK Treasury 2.0% Index-Linked 2016                       6.15%            3.27%
North Atlantic Smaller Companies                         4.15%            3.94%
UK Treasury 0.125% Index-Linked 2024                     4.02%            4.07%
UK Treasury 1.25% Index-Linked 2017                      3.86%            3.91%
USA Treasury 1.375% Index-Linked 2018                    3.38%            3.41%
M&G High Income Investment Trust                         3.22%            3.06%
USA Treasury 2.0% Index-Linked 2026                      3.09%            3.44%
Sweden 0.5% Index-Linked 2017                            2.65%            2.78%
Ecofin Water & Power Opportunities                       2.64%            2.47%
USA Treasury 0.625% Index-Linked 2021                    2.61%            2.61%
                                                                               
The ten largest investments at 5 July 2014 represented 35.77% of the portfolio 
compared to 34.62% at 5 April 2014.                                            


Distribution of Investment Funds of £90,976,300 at 5 July 2014

Name                       UK    North  Europe Elsewhere     5 July     5 April
                               America                         2014        2014
                                                              Total       Total
                                                                               
                            %        %       %         %          %           %
                                                                               
Investment Trust Assets:                                                                        
Ordinary shares          13.6      6.9     3.2       3.7       27.4        27.8

Zero dividend            20.2        -       -         -       20.2        19.1
preference Shares                                                                    
                                                                               
Other Assets:                                                                  
Index linked              8.8     13.6     5.7       1.0       29.1        29.8
Fixed interest           10.6        -     2.8         -       13.4        12.6
Gold                      1.4        -       -         -        1.4         1.4
Cash                      1.9      6.6       -         -        8.5         9.3



Performance


                                        At 5        At 5        At 5        At 5
                                         Jul         Apr         Jan         Oct
                                        2014        2014        2014        2013
                                                                                
NAV per Ordinary Share              3,108.3p    3,120.8p    3,054.1p    3,094.5p
                                                                                
Share Price per Ordinary Share      3,100.0p    3,340.0p    3,200.0p    3,482.0p
                                                                                
FTSE Equity Investment               7,342.8     7,247.0     7,168.8     6,936.2
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.    
                                                                                
For enquiries, please contact [e-mail] or CG   
Asset Management Limited at 25 Moorgate, London, EC2R 6AY.                      
                                                                                
Further information is available on the Company's website: www.capitalgearingtrust.com.


Disclaimer: Neither the contents of the Company's website nor the contents of   
any website accessible from hyperlinks on the Company's website (or any other   
website) is incorporated into, or forms part of, this announcement.             
                                                                                
Date: 5 August 2014