Portfolio Update

Capital Gearing Trust PLC
04 June 2007


Capital Gearing Trust plc


Top Ten Investments


In accordance with Listing Rule 15.4.11(1), Capital Gearing Trust plc announces
that as at 31 May 2007 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 Investment Trust Zero Div Pref                                    2.39%
Advance Developing Markets Trust                                          1.61%
London & St Lawrence Investment Company Ord                               1.57%
Advance UK Trust                                                          1.47%
Eclectic Investment Trust                                                 0.36%

                                            Total                         7.40%


In accordance with Listing Rule 15.4.11(2), Capital Gearing Trust plc announces
that as at 31 May 2007 the ten largest investments were as follows:

Company                                               Percentage of portfolio
-----------                                           ------------------------

Sweden ( Kingdom of ) 3.5% Bonds 01/12/28                                 5.61%
TR Property Investment Trust                                              4.32%
France (Govt of ) 5.5% OAT 25/04/29                                       4.05%
Germany ( Fed Rep ) 4.75% Bunds 04/07/28                                  3.69%
Life Offices Opportunities Trust                                          3.63%
North Atlantic Smaller Companies                                          2.87%
Canada ( Govt. of ) 4% Index-Linked 01/12/31                              2.79%
Switzerland (Govt of) 2% Bonds 2014                                       2.73%
Utilico Investment Trust Zero Div Pref                                    2.39%
Germany ( Fed Rep ) 4.0% Bunds 04/04/09                                   2.39%

                                             Total                       34.47%



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

Shanny Looi
Tel: [phone]
TMF Corporate Secretarial Services Limited

4 June 2007








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