Portfolio Update

Capital Gearing Trust PLC
1 July 2004


Top Ten Investments

In accordance with the listings Rule 21.20 (l)(i). Capital Gearing Trust plc
announces that as at 30 June 2004 it had the following holdings in other UK
listed investment companies (including listed investment trusts) which do not
have a stated investment policy to invest no more than 15% of their gross assets
in other listed UK investment companies (including listed investment trusts):

Name                                                    Percentage of portfolio

Martin Currie Portfolio Investment Trust                      2.46%
London & St Lawrence                                          1.45%
Martin Currie Capital Return 'A'                              1.40%
Govett European Zero Pref                                     0.70%
Hansa Trust 'A; Ordinary                                      0.70%
BFS Absolute Return Zero Pref                                 0.66%

Total                                                         7.37%

In accordance with Listing Rule (l)(ii). Capital Gearing Trust plc announces 
that at 30 June 2004 the ten largest investments were as follows:

Company                                                 Percentage of portfolio

Kingdom of Sweden Index - Linked 3.5% 2028                    6.72%
Jupiter Split Trust Zero Pref                                 6.50%
German Bund 4.75% 2028                                        5.59%
France OAT 5.5% 2029                                          5.30%
Aberdeen Development Capital Zero Pref                        4.38%
German Bund 4% 2009                                           3.32%
USA TIPS 3.625% 2028                                          3.24%
Canada Index-Linked 4.0% 2031                                 3.03%
Premium Trust Zero Pref                                       2.79%
Rutland Trust                                                 2.57%


Total                                                        43.44%

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


Enquiries

Andrew Kane
Ernst & Young LLP
01582 643272



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