Quarterly Portfolio Update

CAPITAL GEARING TRUST P.L.C

Quarterly Portfolio Update

In accordance with Listing Rule 15.6.8, Capital Gearing Trust p.l.c announces
that as at 5 October 2009 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      
                                                                               
Utilico Finance LTD Zero Div Pref 31/10/12                                2.53%
                                                                               
London & St Lawrence Investment Company                                   1.44%
                                                                               
Utilico Finance LTD Zero Div Pref 2016                                    0.81%
                                                                               
Advance UK Trust                                                          0.57%
                                                                               
Iimia Investment Trust                                                    0.43%
                                                                               
Advance Developing Markets Subscription Shares                            0.42%
                                                                               
Utilico Ltd                                                               0.24%
                                                                               
Eclectic Investment Trust                                                 0.15%
                                                                               
Total                                                                     6.59%

Capital Gearing Trust p.l.c also announces that as at 5 October 2009 the ten
largest investments were as follows:

Name                                                              Percentage of    
                                                                      portfolio      
                                                                               
Treasury 2.5% Index Linked 2013                                           6.61%
                                                                               
Switzerland (Govt of) 2% Index Linked Bonds 2014                          6.31%
                                                                               
Switzerland (Govt of ) 3.0% Bonds 2018                                    5.09%
                                                                               
France (Govt of ) 5.5% OAT 25/04/29                                       5.05%
                                                                               
Germany (Fed Rep) 4.75% Bonds 04/07/28                                    4.70%
                                                                               
USA Treasury 2.0% Index Linked 15/01/16                                   4.25%
                                                                               
USA Treasury Notes 1.375 Index Linked 15/07/18                            4.22%
                                                                               
USA Treasury 2.0% Index Linked 15/01/26                                   3.17%
                                                                               
Allianz Dresdner 2nd Endowment Policy Trust 2009                          2.59%
                                                                               
Utilico Finance LTD Zero Div Pref 31/10/12                                2.53%
                                                                               
Total                                                                    44.52%

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:

Alice Parker, TMF Corporate Secretarial Services Limited

Email: [e-mail]

Date: 7 October 2009