Portfolio Update

CAPITAL GEARING TRUST P.L.C

Monthly Portfolio Update

Capital Gearing Trust p.l.c announces that as at 31 December 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 2012                                    2.56%
                                                                               
London & St Lawrence Investment Company                                   1.37%
                                                                               
Utilico Finance LTD Zero Div Pref 2016                                    0.81%
                                                                               
Advance UK Trust                                                          0.59%
                                                                               
Cazenove Absolute Equity Ltd                                              0.51%
                                                                               
Advance Developing Markets Subscription Shares                            0.48%
                                                                               
Iimia Investment Trust                                                    0.43%
                                                                               
Utilico Ltd                                                               0.32%
                                                                               
Tapestry Investment Co Red Ptg Pref Shares                                0.23%
                                                                               
Eclectic Investment Trust                                                 0.18%
                                                                               
Ceres Agriculture Fund                                                    0.16%
                                                                               
Goldman Sachs Dynamic Opportunities USD                                   0.08%
                                                                               
Total                                                                     7.72%

Capital Gearing Trust p.l.c also announces that as at 31 December 2009 the ten
largest investments were as follows:

Name                                                              Percentage of    
                                                                      portfolio      
                                                                               
Treasury 2.5% Index Linked 2013                                           6.65%
                                                                               
Switzerland (Govt of) 2% Bonds 2014                                       6.26%
                                                                               
Switzerland (Govt of) 3% Bonds 2018                                       5.02%
                                                                               
France (Govt of) 5.5% OAT 2029                                            4.80%
                                                                               
Germany (Fed Rep) 4.75% Bonds 2028                                        4.45%
                                                                               
USA Treasury 2% Index Linked Bonds 2016                                   4.31%
                                                                               
USA Treasury 1.375% Index Linked Bonds 2018                               4.23%
                                                                               
USA Treasury 2% Index Linked Bonds 2026                                   3.14%
                                                                               
USA Treasury 1.75% Index Linked Bonds 2028                                2.85%
                                                                               
Allianz Dresdner 2nd Endowment Policy Trust 2009                          2.71%
                                                                               
Total                                                                    44.42%

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:

Alice Parker, TMF Corporate Secretarial Services Limited

Email: [e-mail]

Date: 5 January 2010