Portfolio Update

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

Monthly Portfolio Update

The Company announces that as at 31 May 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                                                1.62%
                                                                               
Utilico Finance Zero Div Pref 2012                                        1.61%
                                                                               
Aberforth Geared Income Zero Div Pref 2017                                1.34%
                                                                               
The Cayenne Trust 3.25% Conv 2016                                         0.92%
                                                                               
Investors in Global Real Estate                                           0.89%
                                                                               
Utilico Finance Zero Div Pref 2016                                        0.83%
                                                                               
Oryx International Growth                                                 0.45%
                                                                               
Miton Worldwide Growth Investment Trust                                   0.40%
                                                                               
Hansa Trust `A' (Non-Voting)                                              0.20%

Cazenove Absolute Equity Pref                                             0.04%
                                                                               
Total                                                                     8.30%


The Company also announces that as at 31 May 2012 the ten largest investments
were as follows:

Name                                                              Percentage of     
                                                                      portfolio       
                                                                               
USA Treasury 1.75% Index Linked 2028                                      6.10%
                                                                               
USA Treasury 2.0% Index Linked 2026                                       5.61%
                                                                               
UK Treasury 1.25% Index Linked 2027                                       4.65%
                                                                               
Switzerland (Govt of) 3.0% 2018                                           4.52%
                                                                               
USA Treasury 1.375% Index Linked 2018                                     4.08%
                                                                               
Sweden (Kingdom of) 3.5% Index Linked 2028                                3.73%
                                                                               
UK Treasury 0.125% Index Linked 2029                                      3.29%
                                                                               
USA Treasury 0.625% Index Linked 2021                                     3.19%
                                                                               
Sweden (Kingdom of) 0.5% Index Linked 2017                                2.94%
                                                                               
North Atlantic Smaller Companies                                          2.42%
                                                                               
Total                                                                    40.53%


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: 7 June 2012