Interim Management Statement

Interim Management Statement
for the period 6 October 2007 to 31 January 2008

In accordance with the UK Listing Authority's new Disclosure and
Transparency Rules DTR 4.3, Capital Gearing Trust plc (the "Company")
announces its interim management statement which relates to the
period from 6 October 2007 to 31 January 2008, and contains
information that covers this period, and up to the date of
publication of this interim management statement, unless otherwise
specified.

Investment Objective
Capital Gearing Trust plc aims to achieve capital growth in absolute
terms principally through investment in closed ended and other
collective investment vehicles with a willingness to hold cash and
other bonds when appropriate.

Review of the period

  * Over the period to 31 January 2008, the Company's Net Asset Value
    ('NAV') rose by 1.3 % to 2045.7 p.  As a comparator, the FTSE
    Equity Investment Instruments Index fell by 10.4 % although as an
    absolute return fund, the actual performance benchmark is cash.
  * The share price has fallen to 2025 p per Ordinary Share, a
    decrease of 1.2 % from 5 October 2007.
  * A small position was initiated in commodities.  Equity weightings
    were reduced in favour of Swiss bonds.
  * The Company published its Half-Year Report for the six months
    ended 5 October 2007 on 13 November 2007.
  * On 6 February 2008, in accordance with the UKLA's Disclosure &
    Transparency Rule 3.1.2, the Company announced that Mr RPA
    Spiller, a Director of the Company, purchased the following
    Ordinary Shares of 25p each at a price of 2020p per share in the
    Company on 5 February, in the UK -



Director                Number of                % of issued share
                        Ordinary Shares          capital
Mr RPA Spiller          4,550                    0.16

Connected Person
Mrs D Spiller (Spouse)                   1,900   0.07

Total current shareholding of Mr RPA     305,671 10.94
Spiller


Material events and transactions

The major changes over the quarter were a reduction of the equity
weighting in favour of bonds. Profits were realised from a number of
holdings including F&C Private Equity and the TR Property and SR
European investment trusts. Swiss bonds dated 2014 and 2018 were
purchased. The fall in sterling and the strength of bonds had a
beneficial effect on the portfolio and also contributed to an
increase in the weighting of overseas bonds.

Further to the ruling of The European Court of Justice that
investment trusts are exempt from VAT on management fees, CG Asset
Management Limited have submitted a claim for repayment of VAT paid
on management fees to HM Revenue & Customs on behalf of the Company.

Largest Investments


Name                           % of portfolio at 31 % of portfolio at
                                   January 2008      5 October 2007
Sweden ( Kingdom of ) 3.5%            6.28%
Bonds 01/12/28                                            5.76%
Switzerland (Govt of) 2% Bonds        5.08%
2014                                                      2.78%
France (Govt of ) 5.5% OAT            4.43%
25/04/29                                                  4.11%
Treasury 2.5% Index Linked            4.27%
2013                                                      4.18%
Switzerland (Govt of) 3.0%            4.11%
Bonds 2018                                                1.46%
Life Offices Opportunities            4.09%
Trust                                                     3.92%
Germany ( Fed Rep ) 4.75%             4.07%
Bunds 04/07/28                                            3.76%
Canada ( Govt. of ) 4%                2.95%
Index-Linked 01/12/31                                     2.93%
Germany ( Fed Rep ) 4.0% Bunds        2.62%
04/04/09                                                  2.46%
Utilico Finance LTD Zero Div          2.50%
Pref 31.10.2012                                           2.42%
North Atlantic Smaller                2.25%
Companies                                                 2.73%


The ten largest investments at 31 January 2008 represent 40.40% of
the portfolio compared to 35.06% at 5 October 2007.

Distribution of Investment Funds of £57,176,000


Name              UK %   North   Europe % Elsewhere   31    5 October
                       America %              %     January   2007
                                                     2008    Total %
                                                    Total %
Investment trust
assets:
Ordinary shares   15.0    2.5      0.9       4.0     22.4     30.3
Endowment funds   7.2                                 7.2      6.7
Commodities                                  0.7      0.7
Zero dividend     15.0                               15.0     18.3
preference shares
Other assets:
Fixed interest    2.4              17.6      2.5     22.5     18.5
Index linked      7.7     4.5      14.3              26.5     23.1
Cash              5.7                                 5.7      3.1
                  53.0    7.0      32.8      7.2      100      100


Performance


                                         At        At      At      At
                                 31 January 5 October 5 April 5 April
                                       2008      2007    2007    2006
NAV per ordinary share               2045.7    2019.4  2024.2  1937.0
FTSE Equity Investment               5669.4    6324.6  6032.7  5651.1
Instruments Index
Share price per ordinary share        2025p     2050p   2060p   2055p


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.

Enquiries -
Please contact [e-mail] or CG Asset
Management Limited at 25 Moorgate, London, EC2R 6AY.

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