Portfolio Update

Capital Gearing Trust PLC
02 June 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 May 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%
London & St Lawrence                                       1.28%
F&C Private Equity 'A'                                     1.00%
Tribune UK Tracker                                         0.89%
Bear Stearns Private Equity Zero Pref                      0.44%
Advance UK Trust                                           0.29%
F&C Private Equity 'B'                                     0.29%
Advance Developing Markets Trust                           0.22%

Total                                                      6.86%


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

Company                                           Percentage of portfolio
Kingdom of Sweden Index - Linked 3.5% 2028                 5.93%
France OAT 5.5% 2029                                       4.64%
Treasury 2.5% Index-Linked 2013                            4.36%
German Bund 4.75% 2028                                     4.22%
TR Property Investment Trust                               3.58%
Rutland Trust                                              3.30%
Canada Index-Linked 4.0% 2031                              3.17%
Life Offices Opportunities Trust                           2.97%
Allianz Dresdner 2nd Endowment Policy Trust 2006           2.74%
Active Capital Trust                                       2.73%

Total                                                     37.64%

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'.

Enquiries

Andrew Kane 
Ernst & Young LLP 
01582 643272


                      This information is provided by RNS
            The company news service from the London Stock Exchange