Portfolio update - May 2008

Monthly Portfolio Update

Capital Gearing Trust p.l.c announces that as at 30 May 2008 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 2012                    2.49%
London & St Lawrence Investment Company                   1.52%
Utilico Ltd                                               0.62%
Utilico Finance LTD Zero Div Pref 2016                    0.61%
Advance Developing Markets Trust                          0.52%
Eclectic Investment Trust                                 0.34%

Total                                                     6.10%


Capital Gearing Trust p.l.c also announces that as at 30 May 2008 the
ten largest investments were as follows:


Name                                        Percentage of portfolio

Sweden (Kingdom of) 3.5% Bonds 2028                           6.42%
Switzerland (Govt of) 2% Bonds 2014                           5.12%
France (Govt of) 5.5% OAT 2029                                4.33%
Treasury 2.5% Index Linked 2013                               4.19%
Life Offices Opportunities Trust                              4.15%
Switzerland (Govt of) 3.0% Bonds 2018                         4.06%
Germany (Fed Rep) 4.75% Bunds 04/07/28                        3.99%
Canada (Govt. of) 4% Index Linked 2031                        3.13%
Germany (Fed Rep) 4.0% Bunds 2009                             2.68%
Utilico Finance LTD Zero Div Pref 2012                        2.49%

Total                                                        40.55%


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/Tracey Lago, TMF Corporate Secretarial Services Limited
Email: [e-mail]

Date: 2 June 2008

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