Monthly Update

British Empire Sec & Gen Tst PLC
16 August 2006

BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

This investment management report relates to performance figures as at 31 July
2006.

Over the month NAV was up 0.3%1.  This compares to an decrease in the benchmark
of 0.2%2, and an increase of 1.3%1  for the FTSE All Share and a decrease of
0.3%1 and the MSCI World (£) indices.

Financial year to date, net asset value rose 11.0%1 compared to a rise of 9.5%2
for the Datastream index, 4.6%1 for the MSCI World (£) and 12.1%1 for the FTSE
All Share.

Over three years NAV is up 111.2%1 while the FTSE All Share is up 61.9%1.

Manager's Comment

We have taken advantage of recent market weakness to put some funds back into
the market and, specifically, to rebuild a position in Vivendi that was sold
higher up.  Markets are still unsettled by rising interest rates in major
economies but the US appears to be nearing the end of its tightening cycle and
is generally a leading indicator for other markets.  Next year may feature a
tension in the market between slowing economic and profits growth and,
eventually, easing interest rates.

Statistics

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

Price (£)1                   435.0      -1.4      15.5      133.1   148.3

Net Asset Value1             421.9       0.3      17.2      106.5   106.9

Net Asset Value Total Return1            0.3      18.3     111.2    115.8

Benchmark2 (£)                          -0.2      15.4      59.5     31.0


Annual Returns (%)             2005     2004      2003      2002     2001

Price1                         51.7     36.0      41.6     -12.2      0.8

MSCI World1                    23.0      7.2      20.6     -27.4    -14.1



1 Source: Fundamental Data

2 Datastream Global Growth Investment Trust Index(TR) Source: Thomson Financial





Top 10 Equity Holdings                            %

Investor AB                                    3.98
Alliance Trust                                 3.11
Deutsche Wohnen                                2.88
Jardine Strategic                              2.87
Sofina                                         2.36
Tokyu Corporation                              2.31
Kinross Gold                                   2.22
Hutchison Whampoa                              2.20
Lundbergforetagen                              2.12
Paris Orleans                                  2.08

Capital Structure

Ordinary Shares                         160,080,089

10 3/8% Debenture stock 2011             £8,514,940

8 1/8% Debenture stock 2023             £14,875,319

Equities index unsecured loan 
stock 2013                                2,837,000

Gross Assets/Gearing

Gross Assets                              £714 mil.

Debt                                     £31.1 mil.

Actual Gearing (Debt less cash 
divided by net asset value)                  -16.1%





Fund Codes



Bloomberg                     Reuters Ticker/ ISIN

BTEM                                  GB0001335081



Geographical Breakdown

Continental Europe                           23.1%
Japan                                        14.4%
Canada / US                                   5.8%
Asia Pacific                                 13.8%
UK                                           21.0%
Liquidity                                    19.1%
EMEA                                          2.8%

All figures as at 31 July 2006 unless otherwise stated.  All sources Asset Value
Investors Ltd 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