Portfolio Update

Capital Gearing Trust PLC
02 February 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 31st January 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                            2.45%

F&C Private Equity 'A'                       1.44%

London & St Lawrence                         1.25%

F&C Private Equity 'B'                       0.53%

Advance UK Trust                             0.29%

Total                                        5.96%

In accordance with Listing Rule 15.4.11(2), Capital Gearing Trust plc announces
that as at 31st January 2006 the ten largest investments were as follows:

Company                                      Percentage of portfolio

Kingdom of Sweden Index - Linked 3.5% 2028            6.22%

France OAT 5.5% 2029                                  4.97%

German Bund 4.75% 2028                                4.48%

Treasury 2.5% Index-Linked 2013                       4.39%

Rutland Trust                                         3.36%

Canada Index-Linked 4.0% 2031                         3.34%

Life Offices Opportunities Trust                      2.73%

Active Capital                                        2.71%

German Bund 4% 2009                                   2.68%

TR Property Investment Trust                          2.60%



Total                                                 37.48%



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' and that all future portfolio announcements as
from 31st January 2006,  will be calculated using bid prices in regards to net
asset values.

Enquires

Andrew Kane

Ernst & Young LLP

01582 643272



END


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