Portfolio Update

Capital Gearing Trust PLC
04 July 2005



CAPITAL GEARING TRUST plc

Top Ten Investments

In accordance with the listings Rule 21.20 (l) (i), Capital Gearing Trust plc
announces that as at 30 June 2005 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 Zero Pref                                              2.61%
Martin Currie Capital Return 'A'                               1.59%
London & St Lawrence                                           1.43%
Hansa Trust 'A'; Ordinary                                      0.24%

Total                                                          5.87%

In accordance with Listing Rule (l) (ii), Capital Gearing Trust plc announces
that at 30 June 2005 the ten largest investments were as follows:

Company                                               Percentage of portfolio

Kingdom of Sweden Index - Linked 3.5% 2028                     6.76%
France OAT 5.5% 2029                                           5.51%
German Bund 4.75% 2028                                         4.98%
Treasury 2.5% Index-Linked 2013                                4.76%
Canada Index-Linked 4.0% 2031                                  3.21%
Rutland Trust                                                  3.19%
German Bund 4% 2009                                            3.01%
Utilico Investment Trust Zero Div Pref                         2.61%
Life Offices Opportunities Trust                               2.59%
Premium Trust zero div pref                                    2.45%


Total                                                        39.07%


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


Enquires

Andrew Kane
Ernst & Young LLP
01582 643272

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