Portfolio Update

Capital Gearing Trust PLC
03 January 2007


Top Ten Investments


In accordance with Listing Rule 15.4.11(1), Capital Gearing Trust plc announces
that as at 31 December 2006 it had the following holdings in other UK listed
investment companies (including listed investment trusts) which do not have a
stated investment policy to invest no more than 15% of their gross assets in
other listed UK investment companies (including listed investment trusts):

Name                                                  Percentage of portfolio
------                                                ------------------------
Utilico Investment Trust Zero Div Pref                                    2.43%
London & St Lawrence Investment Company Ord                               1.53%
Advance Developing Markets Trust                                          1.44%
Advance UK Trust                                                          1.41%
Bear Stearns Private Equity Ltd Zero div Pref                             0.08%

Total                                                                     6.88%


In accordance with Listing Rule 15.4.11(2), Capital Gearing Trust plc announces
that as at 31 December 2006 the ten largest investments were as follows:

Company                                               Percentage of portfolio
---------                                             ------------------------

Sweden ( Kingdom of ) 3.5% Bonds 01/12/28                                 6.11%
France (Govt of ) 5.5% OAT 25/04/29                                       4.41%
TR Property Investment Trust                                              4.40%
Germany ( Fed Rep ) 4.75% Bunds 04/07/28                                  4.01%
Life Offices Opportunities Trust                                          3.40%
Canada ( Govt. of ) 4% Index-Linked 01/12/31                              2.78%
North Atlantic Smaller Companies                                          2.61%
Premier Utilities Trust Zero Div Pref                                     2.55%
Germany ( Fed Rep ) 4.0% Bunds 04/04/09                                   2.45%
Utilico Investment Trust Zero Div Pref                                    2.43%

Total                                                                    35.15%



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

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


Enquiries


Alice Parker

Tel: [phone]

TMF Corporate Secretarial Services Limited


3 January 2007








                      This information is provided by RNS
            The company news service from the London Stock Exchange