Interim Management Statement

CAPITAL GEARING TRUST p.l.c

Interim Management Statement for the period 6 October 2008 to 30
January 2009


In accordance with the UK Listing Authority's Disclosure and
Transparency Rules DTR 4.3, Capital Gearing Trust p.l.c (the
'Company') announces its interim management statement which relates
to the period from 6 October 2008 to 30 January 2009, 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 2008 to 30 January 2009, the
Company's Net Asset Value ('NAV') increased by 3.8% to 2,119.0p. As a
comparator, the FTSE Equity Investment Instruments Index fell by
21.1% although as an absolute return fund, the actual performance
benchmark is cash.

> The share price has risen to 2,251.0p per Ordinary Share, an
increase of 7.3% from 6 October 2008.

> On 17 November 2008, the Company sent to Shareholders a circular
regarding a Sale and Purchase Facility whereby existing Shareholders
could opt to sell their existing holdings or purchase additional
shares in the Company via a matching facility managed by the
Company's corporate brokers JPMorgan Cazenove Limited.

>As a result of the Sale and Purchase Facility, 67,535 Ordinary
Shares were offered, all of which were placed at 2,090p per share,
representing a 3.1% premium to the net asset value as at the close of
business on 10 December 2008. Shareholders wishing to purchase shares
under the Share Purchase Facility were allocated 53.5 per cent. of
their requests.

>The Company published its Half-Year Report for the six months ended
5 October 2008 on 18 November 2008.


Material Events and Transactions

The portfolio maintained a defensive stance throughout the period.
Purchases were made at large discounts in unfashionable areas -
Henderson Global Property, Melchior Japan, Prospect Japan, M. & G.
Recovery ZDPs and even, at the end of the period, in funds investing
in hedge funds in the form of Dexion Absolute and Goldman Sachs
Dynamic Opportunities.  In both the latter cases, the prospect of
liquidation, albeit over time makes the big discounts look
attractive.

In bonds, both a maturity and a sale were used to reduce exposure to
Sweden.  Purchases were made of straight bonds in Switzerland and,
more aggressively, in TIPS in the US, which look like a solid rock
for the portfolio in the interesting markets ahead.



Ten Largest Investments


Name                                 % of Portfolio    % of portfolio
                                 at 30 January 2009 at 5 October 2008

Treasury 2.5% Index-Linked 2013                6.96              4.42
Switzerland(Govt of) 2% Bonds                  6.79              5.94
2014
Switzerland(Govt of) 3% Bonds                  5.41              4.57
2018
France (Govt of) 5.5% OAT 2029                 5.23              4.67
USA Treasury Notes 1.375% 2018                 5.03                 -
USA Treasury 2% TIPS 2016                      5.00              3.30
Germany(Fed Rep) 4.75% Bunds                   4.88              4.30
2028
USA Treasury Notes 0.625% 2013                 2.99              0.99
Allianz Dresdner 2nd Endowment                 2.84              2.92
Policy Trust 2009
Utilico Finance Limited Zero Div               2.52              2.53
Pref 2012



The ten largest investments at 30 January 2009 represented 47.65% of
the portfolio compared to 44.58% at 5 October 2008.


Distribution of Investment Funds of £59,223,222 at 30 January 2009.


Name                      North                  30 January 5 October
                     UK America Europe Elsewhere       2009      2008
                      %       %      %         %      Total     Total
                                                          %         %
  Investment
Trust Assets:
Ordinary Shares     9.8     1.6    1.4       3.1       15.9      19.3
Endowment Funds     3.6       -      -         -        3.6       9.0
Zero Dividend      11.5       -      -         -       11.5      12.0
Preference Shares
  Other Assets:
Fixed Interest      5.8       -   28.3       2.0       36.1      29.5
Index Linked       12.2    17.2    1.1         -       30.5      26.1
Cash                2.4       -      -         -        2.4       4.1


Performance

                               At 30 At 5 October At 5 April     At 5
                        January 2009         2008       2008  October
                                                                 2007
NAV per Ordinary Share      2,119.0p     2,040.7p   2,126.4p 2,029.7p
Share Price per             2,251.0p     2,098.0p   2,135.0p 2,050.0p
Ordinary Share
FTSE Equity Investment       3,825.2      4,849.8    5,765.2  6,324.6
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.

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