Interim Management Statement

CAPITAL GEARING TRUST p.l.c

Interim Management Statement
for the period 6 April 2012 to 5 July 2012

In accordance with the UK Listing Authority's Disclosure and Transparency Rule 
4.3, Capital Gearing Trust p.l.c (the 'Company') announces its interim         
management statement which relates to the period from 6 April 2012 to 5 July   
2012 and contains information that covers this period, and up to the date of   
publication of this interim management statement, unless otherwise specified.  
   
                                                                            
Investment Objective                                                           
                                                                               
The Company aims to achieve capital growth in absolute terms principally       
through investment in quoted closed ended and other collective investment      
vehicles, invested in equities or property, with a willingness to hold cash,   
bonds, index linked securities and commodities when appropriate.               
   
                                                                            
Review of the period                                                           
                                                                               
  * Over the period from 6 April 2012 to 5 July 2012, the Company's Net Asset  
    Value ('NAV') rose by 1.96% to 2,936.5p (ex-div and inclusive of income),  
    after adjusting the 5 April NAV by the amount of the dividend. As a        
    comparator, the FTSE Equity Investment Instruments Index decreased by 2.4% 
    and the FTSE All-Share Index decreased by 0.8%, although as an absolute    
    return fund, the actual performance benchmark is cash.                     
                                                                               
  * The share price has risen to 3,132p per ordinary share, an increase of 3.9%
    from 5 April 2012.                                                         
                                                                               
  * The Company released the Preliminary Announcement of its full year results 
    on 29 May 2012 and published its Annual Report for the twelve months ended 
    5 April 2012 on 12 June 2012.                                              
                                                                               
  * On 13 July 2012, the Company held its 49th Annual General Meeting. Eleven  
    resolutions were proposed and all were passed on a show of hands.          
                                                                               
  * A dividend of 18.5p per ordinary share was paid to shareholders on 19 July 
    2012.                                                                      
       
                                                                        
Material events and transactions                                               
                                                                               
  * The quarter saw lacklustre equity markets, reacting to slower economic     
    growth in developed economies.                                             
                                                                               
  * The pressure on the Euro increased as the relentless rise in peripheral    
    bond yields was met with no clear political solution.                      
                                                                               
  * Interest rates for the high quality issuers fell as investors sought safe  
    havens.                                                                    
                                                                               
  * The asset allocation remained broadly unchanged in the period, although    
    profits were taken in European bonds.                                      


Ten Largest Investments

Name                                                         % of          % of
                                                        Portfolio     portfolio
                                                        at 5 July    at 5 April
                                                             2012          2012
                                                                               
USA Treasury 1.75% Index Linked 2028                         6.07          5.61
                                                                               
USA Treasury 2.0% Index Linked 2026                          5.58          5.22
                                                                               
UK Treasury 1.25% Index Linked 2027                          4.60          4.59
                                                                               
Switzerland (Govt of) 3.0% 2018                              4.49          4.68
                                                                               
USA Treasury 1.375% Index Linked 2018                        4.05          3.96
                                                                               
Sweden (Kingdom of) 3.5% Index Linked 2028                   3.87          3.82
                                                                               
UK Treasury 0.125% Index Linked 2029                         3.26          3.25
                                                                               
USA Treasury 0.625% Index Linked 2021                        3.18          3.01
                                                                               
Sweden (Kingdom of) 0.5% Index Linked 2017                   3.06          3.11
                                                                               
North Atlantic Smaller Companies                             2.73          2.66

The ten largest investments at 5 July 2012 represented 40.89% of the portfolio 
compared to 39.91% at 5 April 2012.                                            


Distribution of Investment Funds of £85,742,196 at 5 July 2012

Name                     UK       North    Europe   Elsewhere        5        5
                                America                           July    April 
                                                                  2012     2012         
                                                                 Total    Total         
                          %           %         %           %        %        %
                                                                               
Investment Trust                                                               
Assets:                                                                        
                                                                               
Ordinary Shares         8.8         2.2       3.1         7.5     21.6     25.4
                                                                               
Zero Dividend          15.3           -         -           -     15.3     13.9
Preference Shares                                                              
                                                                               
Other Assets:                                                                  
                                                                               
Index Linked            7.8        25.7      11.2         2.1     46.8     46.9
                                                                               
Fixed Interest          4.8           -         -         5.4     10.2     11.3
                                                                               
Gold*                   2.0           -         -           -      2.0         
                                                                               
Cash                    4.1           -         -           -      4.1      2.5

* 'Gold' reflects the holding in ETFS Metal Securities, which was included in
the Ordinary Shares total in the distribution of investment funds table shown
in the 2012 Annual Report.


Performance

                             At 5        At 5         At 5         At 5        
                             July        April        October      April        
                             2012        2012         2011         2011

NAV per Ordinary Share       2,936.5p    2,898.6p     2,829.0p     2,652.8p    
                                                                               
Share Price per Ordinary     3,132.0p    3,015.0p     2,970.0p     3,115.0p    
Share                                                                          
                                                                               
FTSE Equity Investment       5,788.6     5,931.8      5,352.4      6,230.4     
Instruments Index                                                              

Past performance is not a guide to future performance. The Board is not aware  
of any significant events or transactions which have occurred between the 'as  
at' date of the financial information and the date of publication of the IMS   
which would have a material impact on the financial position of the Company.   

                                                                              
Further information is available on the Company's website,                     
www.capitalgearingtrust.com.                                                   
Please contact [e-mail] or,                   
CG Asset Management Limited at 25 Moorgate, London EC2R 6AY.                   
                                                                               
Date: 23 July 2012