Monthly Update May 2004

British Empire Sec & Gen Tst PLC
17 May 2004


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

Over the month NAV was up 0.8%1. This compares to an increase in the benchmark
of 1.1%2 and an increase of 1.6%1 and 2.1%1for the MSCI World (£) and FTSE All
Share indices respectively.

Financial year to date net asset value rose 18.0%1 compared to a rise of 11.1%2
for the Datastream index, 7.7%1 for the MSCI World (£) and 12.4%1 for the FTSE
All Share.

Over three years NAV is up 24.7%1 while the FTSE All Share is down 14.3%1


Manager's Comment

We have increased our liquidity level to 14% as we became increasingly concerned
by the level of speculative activity in the markets.  Negative real interest
rates in the U.S. have encouraged geared investment in numerous sectors and
markets.

The obvious short term risk is that rising U.S. interest rates could cause
speculators to head for the exits, temporarily overwhelming (or ignoring)
fundamental support.


Statistics
                                    Value      % 1 mo      % 1 yr      % 3 yr    % 5 yr

Price (£)1                          248.0         3.1        55.7        28.8     125.1
Net Asset Value1                   255.45         0.8        42.4        21.4      81.9
Net Asset Value Total Return1                     0.8        43.4        24.7      89.3
Benchmark2 (£)                                    1.1        23.1       -14.9      -6.6


Annual Returns (%)                   2003        2002        2001        2000      1999

Price1                               41.6       -12.2         0.8        26.0      52.6
MSCI World1                          20.6       -27.4       -14.1        -5.8      28.6


1 Source: Fundamental Data
2 Datastream Global Growth Investment Trust Index(TR) Source: Thomson Financial
3 Benchmark index changed to Datastream Global Growth Investment Trust Index(TR)




Top 10 Equity Holdings                              %

Rue Imperiale                                     6.2
Hansa Trust plc                                   5.9
Henderson Electric & General                      4.3
Prospect Japan Fund Ltd                           4.2
Jardine Strategic Holdings Ltd                    3.6
Law Debenture Corp                                3.6
Wendel Investissement                             3.5
Encana Corp                                       2.4
Groupe Bruxelles Lambert SA                       2.3
European Asset Value Fund                         2.1





Capital Structure

Ordinary Shares                                             160,080,089
10 3/8% Debenture Stock 2011                                £11,883,322
8 1/8% Debenture stock 2023                                 £15,000,000
Equities index unsecured loan stock 2013                      3,133.197




Gross Assets / Gearing as at 31 March 2004

Gross Assets                                                  £439.3mil.
Debt                                                          £ 33.6mil.
Actual Gearing (Debt less cash dividend by net asset value)       -1.07%



Fund Codes

Bloomberg                                        Reuters Ticker / ISIN
BTEM                                                      GB0001335081




Geographical Breakdown

Continental Europe                                               28.6%
Japan                                                            15.0%
Canada / US                                                       3.4%
Asia Pacific                                                     11.4%
UK                                                               21.8%
Liquidity                                                        14.0%
EMEA                                                              5.8%



All figures as at 30 April 2004.  All sources Asset Value Investor unless
otherwise stated. British Empire Securities Trust is managed by Asset Value
Investors Ltd. The price of shares and the income from them may go down as well
as up; they can be affected by exchange rate movements between currencies and it
is possible that investors may not get back the full amount invested on disposal
of the shares.  Past performance is no guarantee of future performance.
Investments in emerging markets carries a greater degree of risk, in particular
the volatility of the markets and the local custody and registration
arrangements, which may be less developed than in more mature markets.  There is
no guarantee that the market price of shares in Investment Trusts will fully
reflect their underlying Net Asset Value (NAV). This Investment Trust should be
considered only as part of a balanced portfolio, of which it should not form a
disproportionate part. Under no circumstances should this information be
considered as an offer, or solicitation, to deal in investments. Issued by Asset
Value Investors Ltd., which is authorised and regulated by the Financial
Services Authority.


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