Portfolio Update

CAPITAL GEARING TRUST P.L.C

Monthly Portfolio Update

Capital Gearing Trust p.l.c announces that as at 31 May 2011 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                                    2.31%
                                                                               
London & St Lawrence Investment Company                                   1.06%
                                                                               
Advance Developing Markets Subscription Shares                            0.84%
                                                                               
Utilico Finance LTD Zero Div Pref 2016                                    0.84%
                                                                               
Miton Worldwide Investment Trust                                          0.50%
                                                                               
Tapestry Investment Co Red Ptg Pref Shares                                0.44%
                                                                               
Utilico Ltd                                                               0.30%
                                                                               
Total                                                                     6.29%

Capital Gearing Trust p.l.c also announces that as at 31 May 2011 the ten
largest investments were as follows:

Name                                                              Percentage of     
                                                                      portfolio       
                                                                               
Treasury 1.25% Index Linked 2017                                          6.02%
                                                                               
Switzerland (Govt of) 3.0% Bonds 2018                                     5.07%
                                                                               
USA Treasury 1.75% Index Linked Bonds 2028                                5.07%
                                                                               
Germany (Fed Rep) 4.0% Bonds 2037                                         4.53%
                                                                               
Germany (Fed Rep) 4.75% Bonds 2028                                        3.91%
                                                                               
USA Treasury 1.375% Index Linked Bonds 2018                               3.89%
                                                                               
USA Treasury 2.0% Index Linked Bonds 2026                                 3.84%
                                                                               
Germany (Fed Rep) 1.75% Index Linked 2020                                 3.77%
                                                                               
Treasury 1.25% Index Linked 2027                                          3.66%
                                                                               
North Atlantic Smaller Companies                                          2.84%
                                                                               
Total                                                                    42.60%

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: 3 June 2011