Portfolio Update

Capital Gearing Trust PLC
01 March 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 28th February 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                                           2.42%
F&C Private Equity 'A'                                      1.43%
London & St Lawrence                                        1.27%
F&C Private Equity 'B'                                      0.53%
Advance UK Trust                                            0.29%
Advance Developing Markets Trust                            0.25%

Total                                                       6.19%

In accordance with Listing Rule 15.4.11(2), Capital Gearing Trust plc announces
that as at 28th February 2006 the ten largest investments were as follows:
                                               
Company                                              Percentage of portfolio

Kingdom of Sweden Index - Linked 3.5% 2028                     5.99%
France OAT 5.5% 2029                                           4.90%
German Bund 4.75% 2028                                         4.43%
Treasury 2.5% Index-Linked 2013                                4.33%
Canada Index-Linked 4.0% 2031                                  3.39%
Rutland Trust                                                  3.29%
TR Property Investment Trust                                   3.27%
Active Capital                                                 2.84%
Life Offices Opportunities Trust                               2.76%
German Bund 4% 2009                                            2.63%

Total                                                          37.83%


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






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