Portfolio Update

Capital Gearing Trust PLC
02 December 2004



CAPITAL GEARING TRUST plc

Top Ten Investments

In accordance with the listings Rule 21.20 (l) (i), Capital Gearing Trust plc
announces that as at 30 November 2004 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                                                     2.08%
BFS Absolute Return Zero Pref                                         1.89%
London & St Lawrence                                                  1.41%
Martin Currie Capital Return 'A'                                      1.30%
Hansa Trust 'A'; Ordinary                                             0.61%
Total                                                                 7.29%

In accordance with Listing Rule (l) (ii), Capital Gearing Trust plc announces
that at 30 November 2004 the ten largest investments were as follows:

Company                                             Percentage of portfolio

Kingdom of Sweden Index - Linked 3.5% 2028                            7.15%
France OAT 5.5% 2029                                                  5.43%
German Bund 4.75% 2028                                                4.92%
ADC Zero Pref                                                         4.70%
Treasury 2.5% Index-Linked 2013                                       3.91%
German Bund 4% 2009                                                   3.23%
Canada Index-Linked 4.0% 2031                                         3.08%
USA TIPS 3.625% 2028                                                  2.98%
Rutland Trust                                                         2.59%
Premium Trust Zero Pref                                               2.49%
Total                                                                40.48%


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


Yours faithfully

Andrew Kane
Company Secretarial Group



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