Interim Management Statement

CAPITAL GEARING TRUST p.l.c

Interim Management Statement

for the period 6 October 2013 to 5 January 2014

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 2013 to 5
January 2014 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 2013 to 5 January 2014, the Company's Net
    Asset Value ("NAV"), inclusive of income, decreased by 1.31% to 3,054.07p.
    As a comparator, the FTSE Equity Investment Instruments Index increased by
    3.35%, although as an absolute return fund, the actual performance
    benchmark is cash.
   
  * The share price was 3,200p per Ordinary Share as at 5 January 2014, a 7.52%
    decrease from 5 October 2013, and has risen again since 5 January to 3,420p 
    as at 30 January 2014.
   
  * The Company released its half-year results for the six months ended 5
    October 2013 on 12 November 2013 and published its Half-Year Financial
    Report for the six months ended 5 October 2013 on 27 November 2013.
   
Material events and transactions

  * The portfolio remains broadly spread and defensively positioned with a
    focus on protection against inflation.
   
  * The Investment Trust Ordinary share holdings continued to perform well,
    against the backdrop of a buoyant equity market.
   
  * Investment Trust discounts have narrowed to the tightest levels in 15
    years, delivering strong performance in existing holdings but reducing the
    number of attractive new opportunities.
   
  * Government bonds, both conventional and index-linked, were generally weak
    in the period particularly in Sterling terms, causing the reduction in NAV
    in the quarter.
   
  * Index-linked bond holdings and bond durations have been reduced, however
    Index-linked remain the largest allocation within the portfolio.
   
Ten Largest Investments

Name                                            % of portfolio       % of portfolio
                                                 at 5 January         at 5 October
                                                     2014                 2013
                                                                               
UK Treasury 0.125% Index Linked 2024                 6.11%                6.18%
USA Treasury 2.0% Index Linked 2026                  4.43%                4.63%
Switzerland 3.0% 2018                                4.18%                4.25%
North Atlantic Smaller Companies                     3.69%                3.73%
USA Treasury 1.375% Index Linked 2018                3.52%                3.60%
M&G High Income Investment Trust                     3.04%                2.76%
UK Treasury 1.25% Index Linked 2027                  2.97%                2.72%  
Sweden 0.5% Index Linked 2017                        2.90%                2.98%
USA Treasury 0.625% Index Linked 2021                2.66%                2.74%
Ecofin Water & Power Opps                            2.48%                2.45%
                                                                               
The ten largest investments at 5 January 2014 represented 35.98% of the portfolio       
compared to 36.07% at 5 October 2013.                                

Distribution of Investment Funds of £89,389,775 at 5 January 2014

Name                       UK    North  Europe Elsewhere   5 January   5 October
                               America                          2014        2013       
                                                               Total       Total
                            %        %       %         %           %           %
Investment Trust Assets:                                                               
Ordinary shares          12.9      5.9     2.1       5.8        26.7        22.9
Zero dividend              -        -       -         -         18.6        15.8
preference shares                                                                    
                                                                         
Other Assets:                                                                   
Index linked             10.0     15.2     6.1       1.5        32.8        38.5 
Fixed interest            6.5       -      5.0        -         11.5        10.7
Gold                       -        -       -         -          1.4         1.5
Cash                       -        -       -         -          9.0        10.7



Performance
                                        At 5        At 5        At 5        At 5
                                         Jan         Oct        July       April            
                                        2014        2013        2013        2013
                                                                                
NAV per Ordinary Share              3,054.1p    3,094.5p    3,083.1p    3,198.9p
                                                                                
Share Price per Ordinary Share      3,200.0p    3,482.0p    3,410.0p    3,425.0p
                                                                                
FTSE Equity Investment              7,168.8p    6,936.2p    6,855.6p    6,683.5p
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.    
                                                                                
For enquiries, please contact [e-mail] or CG   
Asset Management Limited at 25 Moorgate, London, EC2R 6AY.                      
                                                                                
Further information is available on the Company's website:                      
www.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: 31 January 2014