Monthly Update

British Empire Sec & Gen Tst PLC
08 January 2007

BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC



Performance Commentary

This investment management report relates to performance figures as at 30
November 2006.

Over the month NAV was up 0.4%1.  This compares to an increase in the benchmark
of 0.1%2, and a decrease of 0.3%1 and 0.6%1 for the FTSE All Share and the MSCI
World (£) indices respectively.

Financial* year to date, net asset value rose 1.1%1 compared to a rise of 2.1%2
for the Datastream index, 0.9%1 for the MSCI World (£) and 2.7%1 for the FTSE
All Share.

Over three years NAV is up 93.8%1 while the FTSE All Share is up 60.1%1.



Manager's Comment

Equity markets have been relatively flat so far this financial year and this
makes sense to us as we do not see a lot of value around.  Private equity buyers
still seem able to make the numbers work but they have to take on increasing
levels of debt and pay ever higher multiples to do it.  There has to be an end
to this process but in the meantime takeover speculation has benefited us in
Forth Ports and EMI.




Statistics


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

Price (£)1                    441.5         -2.7       4.2      103.3      147.9
Net Asset Value1              438.6          0.4      10.7       89.6      119.1
Net Asset Value Total Return1                0.4      11.7       93.8      126.8
Benchmark2 (£)                               0.1      12.4       58.9       46.6


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                                                         3.31
Alliance Trust                                                      3.15
Jardine Strategic                                                   2.52
Sofina                                                              2.40
Electra Private Equity                                              2.36
Tokyu Corporation                                                   2.26
Lundbergforetagen                                                   2.10
NTT Urban Development                                               2.10
Hutchison Whampoa                                                   2.09
Paris Orleans                                                       1.97



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                                                   £735 mil.
Debt                                                         £ 30.4 mil.
Actual Gearing (Debt less cash divided by net asset value)        -16.4%




Fund Codes
Bloomberg                                                Reuters Ticker / ISIN
BTEM                                                     GB0001335081





Geographical Breakdown
Continental Europe                                   21.2%
Japan                                                14.8%
Canada / US                                           5.3%
Asia Pacific                                         12.4%
UK                                                   24.4%
Liquidity                                            19.8%
EMEA                                                  2.1%



All figures as at 30 November 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.


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