Interim Management Statement

CAPITAL GEARING TRUST p.l.c

Interim Management Statement
for the period 6 October 2011 to 5 January 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 October 2011 to 5      
January 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 October 2011 to 5 January 2012, the Company's Net   
    Asset Value (`NAV'), inclusive of income, increased by 1.3% to 2,866.3p. As
    a comparator, the FTSE Equity Investment Instruments Index increased by    
    3.2%, although as an absolute return fund, the actual performance benchmark
    is cash.                                                                   
                                                                               
  * The share price has risen to 3,117.5p per Ordinary Share, an increase of   
    5.0% from 5 October 2011.                                                  
                                                                               
  * The Company published its Half-Year Financial Report for the six months    
    ended 5 October 2011 on 11 November 2011.                                  
                                                                               
  * On 25 November 2011, in accordance with the UKLA's Disclosure &            
    Transparency Rule 5.1.2, the Company announced that Legal & General Group  
    Plc had made an acquisition of voting rights on 23 November, resulting in  
    the percentage of voting rights held increasing to above 3% of the issued  
    Ordinary share capital.                                                    
                                                                               
  * Following a review of external service providers, the Board decided to     
    transfer the administration of the Company's share register from Capita    
    Registrars to Computershare Investor Services plc. The migration of the    
    register took place on Friday 6 January 2012 and an explanatory letter was 
    posted to shareholders on Monday 9 January 2012.                           

                                                                               
Material events and transactions                                               
                                                                               
  * New additions to the portfolio were made in Japanese and French index      
    linked bonds, both of which offered attractive real yields.                
                                                                               
  * Disposals in the period were made in German conventional bonds, to benefit 
    from strong pricing gains.                                                 
                                                                               
  * The above referenced changes in the asset allocation are reflected in the  
    `Distribution of Investment Funds' table below.                            
                                                                               
  * Overall equity exposure was little changed in the period, with additions   
    made to Japanese holdings due to attractive valuations.                    


Ten Largest Investments

Name                                                         % of          % of
                                                        portfolio     portfolio
                                                     at 5 January  at 5 October
                                                             2012          2011
                                                                               
USA Treasury 1.75% Index Linked 2028                        6.10%         5.79%
                                                                               
USA Treasury 2.0% Index Linked 2026                         5.64%         5.36%
                                                                               
UK Treasury 1.25% Index Linked 2027                         4.93%         3.79%
                                                                               
Switzerland (Govt of) 3.0% 2018                             4.92%         4.91%
                                                                               
USA Treasury 1.375% Index Linked 2018                       4.24%         4.03%
                                                                               
Sweden (Kingdom of) 3.5% Index Linked 2028                  4.14%         4.91%
                                                                               
Germany (Fed Rep) 1.75% Index Linked 2020                   3.75%         3.65%
                                                                               
Sweden (Kingdom of) 0.5% Index Linked 2017                  3.30%         3.16%
                                                                               
USA Treasury 0.625% Index Linked 2021                       3.22%         1.49%
                                                                               
UK Treasury 1.25% Index Linked 2017                         3.20%         4.56%

The ten largest investments at 5 January 2012 represented 43.44% of the        
portfolio compared to 45.02% at 5 October 2011.                                


Distribution of Investment Funds of £83,694,020 at 5 January 2012

Name                     UK      North    Europe Elsewhere  5 January 5 October
                               America                           2012      2011
                                                                Total     Total          
                          %          %         %         %          %         %
                                                                               
Investment Trust                                                               
Assets:                                                                        
                                                                               
Ordinary shares         8.9        3.4       3.3       6.3       21.9      20.8
                                                                               
Zero dividend          13.3          -         -         -       13.3      12.9
preference shares                                                              
                                                                               
Other Assets:                                                                  
                                                                               
Index linked            7.8       24.9      13.0       2.1       47.8      45.2
                                                                               
Fixed interest          4.3          -       8.2         -       12.5      19.0
                                                                               
Cash                    4.5          -         -         -        4.5       2.1


Performance

                                 At 5       At 5         At 5         At 5         
                              January    October        April      October      
                                 2012       2011         2011         2010         
                                                                               
NAV per Ordinary Share       2,866.3p   2,829.0p     2,652.8p     2,631.8p     
                                                                               
Share Price per Ordinary     3,117.5p   2,970.0p     3,115.0p     2,820.0p     
Share                                                                          
                                                                               
FTSE Equity Investment       5,522.4    5,352.4      6,230.4      5,765.3      
Instruments Index                                                              
                                                                               
FTSE All-Share Index         2,882.2    2,632.4      3,116.6      2,912.1      
                                                                               
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.   

                                                                               
For enquiries, please contact [e-mail] or,    
CG Asset Management Limited at 25 Moorgate, London, EC2R 6AY.                  
                                                                               
Further information is available on the Company's website,                     
www.capitalgearingtrust.com.                                                   
                                                                               
Disclaimer: Neither the contents of the Company's website nor the contents of  
any website accessible from hyperlinks on the Company's website (or any other  
website) is incorporated into, or forms part of, this announcement.            
                                                                               
Date: 19 January 2012