Portfolio Update

Capital Gearing Trust PLC
03 January 2006


CAPITAL GEARING TRUST plc

Top Ten Investments

In accordance with Listing Rule 15.4.11(1), Capital Gearing Trust plc announces
that as at 30 December 2005 it had the following holdings in other UK listed
investment companies (including listed investment trusts) which do not have a
stated investment policy to invest no more than 15% of their gross assets in
other listed UK investment companies (including listed investment trusts):

Name                                             Percentage of portfolio

Utilico Zero Pref                                       2.47%

F&C Private Equity 'A'                                  1.49%

London & St Lawrence                                    1.20%

F&C Private Equity 'B'                                  0.53%

Advance UK Trust                                        0.28%

Total                                                   5.97%

In accordance with Listing Rule 15.4.11(2), Capital Gearing Trust plc announces
that as at 30 December 2005 the ten largest investments were as follows:

Company                                           Percentage of portfolio

Kingdom of Sweden Index - Linked 3.5% 2028              6.28%

France OAT 5.5% 2029                                    5.16%

German Bund 4.75% 2028                                  4.67%

Treasury 2.5% Index-Linked 2013                         4.43%

Canada Index-Linked 4.0% 2031                           3.47%

Rutland Trust                                           3.39%

Life Offices Opportunities Trust                        2.76%

German Bund 4% 2009                                     2.73%

Utilico Investment Trust Zero Div Pref                  2.47%

Active Capital                                          2.37%

Total                                                  37.73%

There were no additional investments with a value greater that 5% of the
Company's portfolio.

Enquires

Andrew Kane

Ernst & Young LLP

01582 643272


END


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