Portfolio Update

Capital Gearing Trust PLC
04 July 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 30th June 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                                  2.44%
London & St Lawrence                               1.26%
Tribune UK Tracker                                 0.92%
Bear Stearns Private Equity Zero Pref              0.44%
Advance UK Trust                                   0.29%
Advance Developing Markets Trust                   0.23%

Total                                              5.58%

In accordance with Listing Rule 15.4.11(2), Capital Gearing Trust plc announces
that as at 30th June 2006 the ten largest investments were as follows:

Company                                         Percentage of portfolio

Kingdom of Sweden Index - Linked 3.5% 2028         5.97%
France OAT 5.5% 2029                               4.63%
Treasury 2.5% Index-Linked 2013                    4.35%
German Bund 4.75% 2028                             4.19%
TR Property Investment Trust                       3.52%
Rutland Trust                                      3.27%
Canada Index-Linked 4.0% 2031                      3.14%
Life Offices Opportunities Trust                   3.07%
Allianz Dresdner 2nd Endowment Policy Trust 2006   2.74%
Active Capital   Trust                             2.71%

Total                                             37.59%



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
Ernst & Young LLP
01582 643272



END


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