Interim Management Statement

CAPITAL GEARING TRUST p.l.c

Interim Management Statement
for the period 6 October 2012 to 5 January 2013

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 October 2012 to 5
January 2013 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 2012 to 5 January 2013, the Company's Net
    Asset Value ('NAV'), inclusive of income, increased by 1.95% to 3,035.79p.
    As a comparator, the FTSE Equity Investment Instruments Index increased by
    4.43%, although as an absolute return fund, the actual performance
    benchmark is cash.
   
  * The share price has risen to 3,490p per Ordinary Share, an increase of 1.5%
    from 5 October 2012.
   
  * The Company published its Half-Year Financial Report for the six months
    ended 5 October 2012 on 16 November 2012.
   
Material events and transactions

  * The investment trust holdings performed well relative to broader equity
    markets due to a number of corporate actions in our larger holdings.
   
  * Investors in Global Real Estate plc announced a change in discount policy
    leading to a strong share price performance.
   
  * Absolute Return Trust plc, a fund of hedge funds, announced its move to
    managed wind down leading to a material narrowing of the discount.
   
  * Government bonds had a subdued period with a marked sell-off at the long
    end of the nominal yield curve.
   
  * The asset allocation remains broadly unchanged in the period, broadly
    spread and defensively positioned.


Ten Largest Investments
                                    
Name                                                          % of         % of     
                                                         portfolio    portfolio     
                                                      at 5 January at 5 October                
                                                              2013         2012             
                                                                          
USA Treasury 1.75% Index Linked 2028                         5.72%        5.88%
                                                                               
USA Treasury 2.0% Index Linked 2026                          5.25%        5.39%
                                                                               
UK Treasury 1.25% Index Linked 2027                          4.40%        4.44%
                                                                               
Switzerland (Govt of) 3.0% 2018                              4.34%        4.41%
                                                                               
UK Treasury 0.125% Index Linked 2029                         4.09%        4.13%
                                                                               
USA Treasury 1.375% Index Linked 2018                        3.84%        3.91%
                                                                               
North Atlantic Smaller Companies                             3.45%        3.08%
                                                                               
Sweden (Kingdom of) 0.5% Index Linked 2017                   3.02%        3.07%
                                                                               
USA Treasury 0.625% Index Linked 2021                        3.00%        2.83%
                                                                               
Sweden (Kingdom of) 3.5% I/L 2028                            2.76%        2.73%
                                                                               
The ten largest investments at 5 January 2013 represented 39.87% of the portfolio     
compared to 39.87% at 5 October 2012.                                


Distribution of Investment Funds of £88,702,966 at 5 January 2013

Name                       UK    North  Europe  Elsewhere  5 January   5 October
                               America                          2013        2012                 
                                                               Total       Total
                            %        %       %         %           %           %

Investment Trust                                                                
Assets:                                                                         
                                                                                
Ordinary shares                                                 22.9        21.8
                                                                                
Zero dividend            15.6        -       -         -        15.6        16.2
preference shares                                                                      
                                                                                
Other Assets:                                                                   
                                                                                
Index linked              9.8     24.2     8.6       1.8        44.4        45.2
                                                                                
Fixed interest            5.1        -       -       5.2        10.3        10.4
                                                                                
Gold                      1.9        -       -         -         1.9         2.1
                                                                                
Cash                      4.9        -       -         -         4.9         4.3



Performance

                                        At 5        At 5        At 5        At 5
                                     January     October       April     October
                                        2013        2012        2012        2011
                                                                                
NAV per Ordinary Share              3,035.8p    2,977.7p    2,898.6p    2,829.0p
                                                                                
Share Price per Ordinary Share      3,490.0p    3,440.0p    3,015.0p    2,970.0p
                                                                                
FTSE Equity Investment              6,325.9     6,057.8     5,931.8     5,352.4
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.    
                                                                                
Please contact [e-mail] or CG Asset Management 
Limited at 25 Moorgate, London, EC2R 6AY for any enquiries. Further information 
is available on the Company's website: wwww.capitalgearingtrust.com.                      
                                                                                
Disclaimer: Neither the contents of the Company's website nor the contents of   
any website accessible from hyperlinks on the Company's website (or any other   
website) is incorporated into, or forms part of, this announcement.             
                                                                                
Date: 4 February 2013