Portfolio update

Monthly Portfolio Update

In accordance with Listing Rule 15.6.8 (1), Capital Gearing Trust plc
announces that as at 31 December 2007 it had the following
investments in other listed closed-ended investment funds, which do
not have a stated investment policy to invest no more than 15% of
their total assets in other listed closed-ended investment funds:


Name                                         Percentage of portfolio

Utilico Finance LTD Zero Div Pref 31.10.2012                   2.49%
Advance Developing Markets Trust                               1.86%
London & St Lawrence Investment Company Ord                    1.42%
Advance UK Trust                                               0.38%
Eclectic Investment Trust                                      0.37%

Total                                                          6.52%


Capital Gearing Trust plc also announces that as at 31 December 2007
the ten largest investments were as follows:


Name                                         Percentage of portfolio

Sweden ( Kingdom of ) 3.5% Bonds 01/12/28                      6.03%
France (Govt of ) 5.5% OAT 25/04/29                            4.25%
Treasury 2.5% Index Linked 2013                                4.18%
Life Offices Opportunities Trust                               4.06%
Germany ( Fed Rep ) 4.75% Bunds 04/07/28                       3.89%
Switzerland (Govt of) 2% Bonds 2014                            3.65%
Canada ( Govt. of ) 4% Index-Linked 01/12/31                   3.02%
Germany ( Fed Rep ) 4.0% Bunds 04/04/09                        2.56%
Utilico Finance LTD Zero Div Pref 31.10.2012                   2.49%
North Atlantic Smaller Companies                               2.45%


Total                                                         36.57%


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
Keith Hawkins, TMF Corporate Secretarial Services Limited
Email: [e-mail]

Date: 2 January 2008

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