Portfolio Update

Capital Gearing Trust PLC
02 October 2006


CAPITAL GEARING TRUST plc

Top Ten Investments

In accordance with Listing Rule 15.4.11(1), Capital Gearing Trust plc announces
that as at 29th September 2006 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                                          2.39%
London & St Lawrence                                       1.46%
Advance UK Trust                                           1.33%
Advance Developing Markets Trust                           1.30%
Bear Stearns Private Equity Zero Pref                      0.43%
Total                                                      6.90%

In accordance with Listing Rule 15.4.11(2), Capital Gearing Trust plc announces
that as at 29th September 2006 the ten largest investments were as follows:

Company                                          Percentage of portfolio

Kingdom of Sweden Index - Linked 3.5% 2028                 5.91%
France OAT 5.5% 2029                                       4.65%
Treasury 2.5% Index-Linked 2013                            4.27%
German Bund 4.75% 2028                                     4.23%
TR Property Investment Trust                               4.04%
Canada Index-Linked 4.0% 2031                              3.14%
Life Offices Opportunities Trust                           2.96%
Allianz Dresdner 2nd Endowment Policy Trust 2006           2.85%
Germany 4% Bunds 2009                                      2.53%
North Atlantic Smaller Companies                           2.40%

Total                                                     36.99%


There were no additional investments with a value greater that 5% of the
Company's portfolio. It should be noted that the above percentages are
calculated using 'bid prices'.

Enquires

Andrew Kane
TMF Corporate Secretarial Services Limited
01582 439272

END


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