Portfolio Update

Capital Gearing Trust PLC
04 October 2005

CAPITAL GEARING TRUST plc

Top Ten Investments

In accordance with Listing Rule 15.4.11(1), Capital Gearing Trust plc announces
that as at 30 September 2005 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

Utilico Zero Pref               2.48%
F&C Private Equity 'A'          1.31%
London & St Lawrence            1.19%
F&C Private Equity 'B'          0.47%
Hansa Trust 'A'; Ordinary       0.06%

Total                           5.51%

In accordance with Listing Rule 15.4.11(2), Capital Gearing Trust plc announces
that as at 30 September 2005 the ten largest investments were as follows:

Company                                       Percentage of portfolio

Kingdom of Sweden Index - Linked 3.5% 2028               6.60%
France OAT 5.5% 2029                                     5.22%
German Bund 4.75% 2028                                   4.73%
Treasury 2.5% Index-Linked 2013                          4.45%
Canada Index-Linked 4.0% 2031                            3.35%
ADC Zero Div Pref Units                                  3.30%
Rutland Trust                                            3.13%
German Bund 4% 2009                                      2.80%
Life Offices Opportunities Trust                         2.72%
Utilico Investment Trust Zero Div Pref                   2.48%

Total                                                   38.78%



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

Enquires
Andrew Kane
Ernst & Young LLP
01582 643272



END


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