Portfolio Update

Capital Gearing Trust PLC
01 August 2007


Top Ten Investments


In accordance with Listing Rule 15.4.11(1), Capital Gearing Trust plc announces
that as at 31 July 2007 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 Finance LTD Zero Div Pref 31.10.2012                     2.42%
Advance Developing Markets Trust                                 1.73%
London & St Lawrence Investment Company Ord                      1.53%
Advance UK Trust                                                 1.46%
Eclectic Investment Trust                                        0.37%

Total                                                            7.51%


In accordance with Listing Rule 15.4.11(2), Capital Gearing Trust plc announces
that as at 31 July 2007 the ten largest investments were as follows:

Name                                                  Percentage of portfolio
------                                                ------------------------

Sweden ( Kingdom of ) 3.5% Bonds 01/12/28                        5.64%
France (Govt of ) 5.5% OAT 25/04/29                              4.08%
Life Offices Opportunities Trust                                 3.86%
Germany ( Fed Rep ) 4.75% Bunds 04/07/28                         3.73%
TR Property Investment Trust                                     3.17%
Canada ( Govt. of ) 4% Index-Linked 01/12/31                     2.74%
Switzerland (Govt of) 2% Bonds 2014                              2.73%
North Atlantic Smaller Companies                                 2.70%
Utilico Finance LTD Zero Div Pref 31.10.2012                     2.42%
Germany ( Fed Rep ) 4.0% Bunds 04/04/09                          2.40%

Total                                                           33.46%



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

It should be noted that the above percentages are calculated using 'bid prices'.


Enquiries


Alice Parker

[e-mail]

TMF Corporate Secretarial Services Limited


1 August 2007








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