Interim Management Statement

CAPITAL GEARING TRUST p.l.c

 Interim Management Statement
 for the period 6 April 2009 to 3 July 2009



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 2009 to 3 July 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 April 2009 to 3 July 2009, the Company's Net
Asset Value ('NAV') increased by  0.4% to 2,133.5p. As a  comparator,
the FTSE  Equity Investment  Instruments  Index increased  by  10.8%,
although as an absolute return fund, the actual performance benchmark
is cash.

> The  share price  has  fallen to  2,310.0p  per Ordinary  Share,  a
decrease of 2.5% from 5 April 2009.

> On  20 April  2009,  in accordance  with  the UKLA's  Disclosure  &
Transparency  Rule  5.1.2,  the   Company  announced  that   Rensburg
Sheppards Investment  Management  Limited  ('Rensburg')  had  made  a
disposal of shares on 16 April, resulting in the percentage of voting
rights held  being reduced  to  2.99% of  the issued  Ordinary  share
capital. Following a subsequent acquisition of shares on 19 June, the
percentage of voting rights held by Rensburg increased to 3.42%.

> On  8  June  2009,  in accordance  with  the  UKLA's  Disclosure  &
Transparency   Rule   5.1.2,   the   Company   announced   that   Mrs
Maunder-Taylor had made a disposal of shares on 5 June, resulting  in
the percentage of voting  rights held being reduced  to 3.32% of  the
issued Ordinary share capital.

> The Company released the Preliminary Announcement of its full  year
results on 27 May 2009 and published its Annual Report for the twelve
months ended 5 April 2009 on 12 June 2009.

> On 8 July 2009, the  Company held its 46th Annual General  Meeting.
Twelve resolutions were  proposed and all  were passed on  a show  of
hands.

> A dividend of 22.0p per Ordinary share was paid to shareholders  on
13 July 2009.


Material events and transactions

As was true over the last year, the overall volatility of the NAV was
very low, with the capital value up about 1.4% in the quarter, based
on the ex-dividend NAV.  That was against an improvement of 5.5% in
the FTSE All-Share Index, and large falls in the US dollar (-10.1%)
and the euro (-6.1%) against Sterling. Although currency movements
were adverse, bond markets were reasonably stable overall, though
that also marked a sell off followed by a recovery.  The bonds; both
conventional and index-linked, were as hoped negatively correlated
with equity markets.

The property trusts all showed good gains, with Henderson Global,
Japan Residential, Alpha Tiger, Terra Catalyst and Eredene all up by
at least 30%.  The zero dividend preference shares were satisfactory,
with the 'equity-type' zeros outperforming the equity market.

Within the equities, most of the holdings and especially the larger
holdings did well, notably North Atlantic Smaller Companies (+57%),
Oryx (+53%) and Prospect Japan (+35%).  Invesco Perpetual European
Absolute Return just announced that it will wind up and partly for
that reason rose 44%.  The hedge funds were less volatile, but still
did better than equity markets.



Ten Largest Investments


Name                                    % of Portfolio % of portfolio
                                             at 3 July     at 5 April
                                                  2009           2009

Treasury 2.5% Index-Linked 2013                   6.98           6.98
Switzerland (Govt of) 2% Index-Linked             6.30           6.83
Bonds 2014
Switzerland (Govt of) 3% Bonds 2018               5.04           5.50
France (Govt of) 5.5% OAT 2029                    4.99           5.36
Germany (Fed Rep) 4.75% Bonds 2028                4.63           5.00
USA Treasury 2.0% Index-Linked 2016               4.31           4.95
USA Treasury 1.375% Index-Linked 2018             4.25           4.92
USA Treasury 2.0% Index-Linked 2026               3.17           3.57
Allianz Dresdner 2nd Endowment Policy             2.85           2.82
Trust 2009
Utilico Finance Limited Zero Div Pref             2.71              -
2012



The ten largest investments at 3 July 2009 represent 45.23% of the
portfolio compared to 48.85% at 5 April 2009.


Distribution of Investment Funds of £59,628,278 at 3 July 2009.


Name                       UK   North Europe Elsewhere 3 July 5 April
                              America                    2009    2009
                                                        Total   Total
                            %       %      %         %      %       %
Investment Trust Assets:
Ordinary Shares          10.2     2.0    2.5       4.7   19.4    16.0
Endowment Funds           3.6                             3.6     3.6
Zero Dividend Preference
Shares                   10.7                            10.7    10.7
Other Assets:
Fixed Interest            5.8           24.6             30.4    32.3
Index Linked             12.3    18.3    1.0             31.6    33.8
Floating Interest         1.7                             1.7     1.8
Cash                      2.6                             2.6     1.8


Performance

                        At 3       At 5      At 5            At 5
                        July       April     October         April
                        2009       2009      2008            2008
NAV per Ordinary Share  2,133.5p   2,125.4p  2,040.7p        2,126.4p
Share Price per         2,310.0p   2,370.0p  2,098.0p        2,135.0p
Ordinary Share
FTSE Equity Investment  4,237.3    3,824.2   4,849.8         5,765.2
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.

---END OF MESSAGE---




This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.