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

    Monthly Portfolio Update

    Capital Gearing Trust P.l.c. announces that, as at 31 December 2016, it held
    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      
                                                                      
    Highbridge Multi-Strategy                          1.06%          
                                                                      
    Utilico Finance Ltd Zero Div Pref 2018             1.01%          
                                                                      
    Phoenix Spree Deutschland                          0.69%          
                                                                      
    Utilico Finance Ltd Zero Div Pref 2020             0.63%          
                                                                      
    Ecofin Global Utilities and Infrastructure         0.62%          
                                                                      
    DW Catalyst Fund                                   0.59%          
                                                                      
    BH Global                                          0.41%          
                                                                      
    Alliance Trust                                     0.41%          
                                                                      
    Miton Worldwide Growth Investment Trust            0.30%          
                                                                      
    Ranger Direct Lending                              0.30%          
                                                                      
    Henderson Alternative Strategies Trust             0.27%          
                                                                      
    Hansa Trust 'A' (Non-Voting)                       0.08%          
                                                                      
    LMS Capital                                        0.03%          
                                                                      
    Dexion Absolute EUR                                0.01%          
                                                                      
    Dexion Absolute USD                                0.01%          
                                                                      
    Total                                              6.42%          

    Capital Gearing Trust P.l.c. also announces that, as at 31 December 2016, the
    ten largest investments were as follows:

    Name                                               Percentage of  
                                                       portfolio      
                                                                      
    UK Treasury 0.125% Index-Linked 2019               5.57%          
                                                                      
    UK Treasury 1.25% Index-Linked 2017                4.61%          
                                                                      
    North Atlantic Smaller Companies                   3.52%          
                                                                      
    USA Treasury 2.0% Index-Linked 2026                2.89%          
                                                                      
    UK Treasury 0.125% Index-Linked 2024               2.74%          
                                                                      
    USA Treasury 0.625% Index-Linked 2021              2.23%          
                                                                      
    M&G High Income Investment Trust                   2.17%          
                                                                      
    NB Private Equity ZDP                              2.15%          
                                                                      
    UK Treasury Bill 2017                              2.02%          
                                                                      
    USA Treasury 1.75% Index-Linked 2028               1.93%          
                                                                      
    Total                                              29.83%         

    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:

    Steven Cowie, Company Secretary

    Email: company.secretary@capitalgearingtrust.com