Portfolio Update

CAPITAL GEARING TRUST P.L.C (the `Company')

Quarterly Portfolio Update

In accordance with Listing Rule 15.6.8, the Company announces that as at 5
October 2012 it had the following investments in other listed closed-ended
investment funds, which do not have a stated investment policy to invest no
more than 15% of their total assets in other listed closed-ended investment
funds:

Name                                                      Percentage of    
                                                              portfolio      
                                                                               
Advance Developing Markets                                        1.68%        
                                                                               
Aberforth Geared Income Zero Div Pref 2017                        1.66%        
                                                                               
Utilico Finance Zero Div Pref 2012                                1.61%        
                                                                               
Investors in Global Real Estate                                   0.99%        
                                                                               
The Cayenne Trust 3.25% Conv 2016                                 0.92%        
                                                                               
Utilico Finance Zero Div Pref 2016                                0.86%        
                                                                               
Oryx International Growth                                         0.51%        
                                                                               
Miton Worldwide Growth Investment Trust                           0.42%        
                                                                               
Hansa Trust `A' (Non-Voting)                                      0.20%        
                                                                               
Henderson Private Equity Investment Trust                         0.05%        
                                                                               
Total                                                             8.90%
                                                                               

The Company also announces that as at 5 October 2012 the ten largest
investments were as follows:

Name                                                     Percentage of     
                                                             portfolio       
                                                                               
USA Treasury 1.75% Index Linked 2028                             5.88%         
                                                                               
USA Treasury 2.0% Index Linked 2026                              5.39%         
                                                                               
UK Treasury 1.25% Index Linked 2027                              4.44%         
                                                                               
Switzerland (Govt of) 3.0% 2018                                  4.41%         
                                                                               
UK Treasury 0.125% Index Linked 2029                             4.13%         
                                                                               
USA Treasury 1.375% Index Linked 2018                            3.91%         
                                                                               
Sweden (Kingdom of) 0.5% Index Linked 2017                       3.08%         
                                                                               
USA Treasury 0.625% Index Linked 2021                            3.07%         
                                                                               
Sweden (Kingdom of) 3.5% Index Linked 2028                       2.83%         
                                                                               
North Atlantic Smaller Companies                                 2.73%         
                                                                               
Total                                                           39.87%

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

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

Enquiries:

Keith Hawkins, TMF Corporate Secretarial Services Limited
Email: [e-mail]

Date: 10 October 2012