Portfolio Update

CAPITAL GEARING TRUST P.L.C

Monthly Portfolio Update

Capital Gearing Trust p.l.c announces that as at 28 August 2009 it had the
following investments in other listed closed-ended investment funds, which do
not have a stated investment policy to invest no more than 15% of their total
assets in other listed closed-ended investment funds:

Name                                                               Percentage of     
                                                                       portfolio       
                                                                               
Utilico Finance LTD Zero Div Pref 31/10/2012                              2.62%
                                                                               
London & St Lawrence Investment Company                                   1.47%
                                                                               
Utilico Finance LTD Zero Div Pref 2016                                    0.83%
                                                                               
Advance UK Trust                                                          0.54%
                                                                               
Advance Developing Markets                                                0.49%
                                                                               
Iimia Investment Trust                                                    0.40%
                                                                               
Utilico Ltd                                                               0.24%
                                                                               
Eclectic Investment Trust                                                 0.13%
                                                                               
Advance Developing Markets Subscription Shares                            0.10%
                                                                               
Total                                                                     6.82%

Capital Gearing Trust p.l.c also announces that as at 28 August 2009 the ten
largest investments were as follows:

Name                                                               Percentage of    
                                                                       portfolio      
                                                                               
Treasury 2.5% Index Linked 2013                                           6.75%
                                                                               
Switzerland (Govt of) 2% Index Linked Bonds 2014                          6.11%
                                                                               
Switzerland (Govt of ) 3.0% Bonds 2018                                    5.03%
                                                                               
France (Govt of ) 5.5% OAT 25/04/2029                                     4.99%
                                                                               
Germany ( Fed Rep ) 4.75% Bonds 04/07/2028                                4.64%
                                                                               
USA Treasury 2.0% Index Linked 15/01/2016                                 4.23%
                                                                               
USA Treasury 1.375% Index Linked 15/07/2018                               4.20%
                                                                               
USA Treasury 2.0% Index Linked 15/01/2026                                 3.14%
                                                                               
Allianz Dresdner 2nd Endowment Policy Trust 2009                          2.72%
                                                                               
Utilico Finance LTD Zero Div Pref 31/10/2012                              2.62%
                                                                               
Total                                                                    44.43%

There were no additional investments with a value greater than 5% of the
Company's portfolio.

It should be noted that the above percentages are calculated using `bid
prices'.

Enquiries:

Keith Hawkins, TMF Corporate Secretarial Services Limited

Email: [e-mail]

Date: 2 September 2009