Interim Management Statement

Capital Gearing Trust PLC
15 August 2007


                   Capital Gearing Trust plc (the 'Company')


Interim Management Statement
for the period ended 31 July 2007


In accordance with the UK Listing Authority's new Disclosure and Transparency
Rules DTR 4.3, Capital Gearing Trust plc (the 'Company') announces its first
interim management statement which relates to the period from 6 April 2007 to 31
July 2007, and contains information that covers this period, and up to the date
of publication of this interim management statement, unless otherwise specified.


Investment Objective

Capital Gearing Trust plc aims to achieve capital growth in absolute terms
principally through investment in closed ended and other collective investment
vehicles with a willingness to hold cash and other bonds when appropriate.


Review of the period

   •Over the period to 31 July 2007, the Company's Net Asset Value ('NAV')
    fell by 1.2% to 2,000.4p.  As a comparator, the FTSE Equity Investment
    Instruments Index rose by 1.9% although as an absolute return fund, the
    actual performance benchmark is cash.
   •The share price has fallen to 2010p per Ordinary Share, a decrease of
    2.4% from 5 April 2007.
   •The only change in asset allocation was the initiation of a small
    position in commodities.
   •On 9 July 2007, in accordance with the UKLA's Disclosure & Transparency
    Rule 3.1.2, the Company announced that the following Directors purchased
    Ordinary Shares of 25p each at a price of 2033.5p per share in the Company
    on 4 July 2007, in the UK -

                                                   Number of         % of issued                   
Director                                     Ordinary Shares       share capital

Mr RPA Spiller                                         3,531                0.13
Connected Person            Relationship
Mrs D Spiller               Spouse                     8,000                0.29
Total current shareholding                           299,221               10.71

                                                   Number of         % of issued                   
Director                                     Ordinary Shares       share capital

Mr EG Meek                                             4,000                0.14
Connected Person            Relationship
Mrs RS Meek                 Spouse                     1,000                0.04
Total current shareholding                             7,500                0.27

                                                   Number of         % of issued                   
Director                                     Ordinary Shares       share capital

Mr JC Morton                                           1,000                0.04
Total current shareholding                             4,000                0.14


   •The Company published its Report and Accounts for the year ended 5 April
    2007 and announced the preliminary results for the year ended 5 April 2007
    on 11 June 2007.
   •For administrative reasons, the Board appointed TMF Nominees Limited in
    replacement of Chalfen Secretaries Limited as Company Secretary to the
    Company with effect from 21 May 2007.


Material events and transactions

   •The total dividend of 14p for the year ended 5 April 2007 was approved by
    shareholders at the Annual General Meeting held on 14 August 2007.  The
    total dividend is made up of 12p and a 2p special dividend, and will be paid
    to shareholders on 17 August 2007.
   •The European Court of Justice recently ruled that investment trusts are
    exempt from VAT and that some of the VAT paid in the past may be refundable.
    This decision is welcomed by the Board and the Directors will monitor the
    developments in this case, the views of HM Revenue & Customs, and the
    practical implications this will have on the Company.


Top Ten Investments

Name                                      % of portfolio    % of portfolio at
                                         at 31 July 2007         5 April 2007

Sweden (Kingdom of )Index Linked Bonds 2028         5.64                 5.74
France (Government of) 5.5% OAT 2029                4.08                 4.21
Life Offices Opportunities Trust                    3.86                 3.50
Germany (Federal Republic) 4.75% Bonds 2028         3.73                 3.84
TR Property Investment Trust                        3.17                 4.17
Canada (Government of) 4% Index Linked 2031         2.74                 2.71
Switzerland (Government of) 2%                                      
Index Linked Bonds 2014                             2.73                 2.83
North Atlantic Smaller Companies                    2.70                 2.64
Utilico Finance Zero Dividend Preference Shares     2.42                 2.42
Germany (Federal Republic) 4% Bonds 2029            2.40                 2.42



Distribution of Investment Funds of £55,908,000

Name                UK %    North     Europe %   Elsewhere %  31 July 2007   5 April 2007 
                           America %                             Total %         Total %
Investment trust assets:
Ordinary shares     21.2     2.9       1.0          6.2           31.3            35.1
Endowment funds      7.0                                           7.0             6.5
Infrastructure                                      0.4            0.4             0.0
Commodities                                         1.0            1.0             0.0
Zero dividend                                                                                        
preference shares   18.4                                          18.4            17.6
Other assets:
Fixed interest       0.7              14.9                        15.6            16.0
Index linked         3.3     4.1      11.1                        18.5            18.7
Cash                 7.8                                           7.8             6.1
                    58.4     7.0      27.0          7.6            100             100


Performance

                         At              At              At              At
                    31 July 2007    5 April 2007    5 April 2006    5 April 2004
                          
NAV per ordinary share   2,000.4         2,024.4         1,937.0         1,475.8
FTSE Equity               
Investment
Instruments Index         6146.4         6,032.7         5,651.1         3,588.5
Share price per            
ordinary share             2010p           2060p           2055p           1580p  


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.

Enquiries -

Please contact [e-mail] or CG Asset Management
Limited at 25 Moorgate, London, EC2R 6AY.






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