Monthly Update

British Empire Sec & Gen Tst PLC
18 July 2007

BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC



Performance Commentary

This investment management report relates to performance figures as at 30 June
2007.

Over the month NAV was down 1.2%1.  This compares to a decrease in the benchmark
of 1.0%2, and a decrease of 2.1%1 and 0.8%1 for the MSCI World (£) and the FTSE
All Share indices respectively.

Financial* year to date, net asset value rose 16.5%1 compared to a rise of
14.5%2 for the Datastream index, 10.6%1 for the MSCI World (£) and 14.2%1 for
the FTSE All Share.

Over three years NAV is up 96.8%1 while the FTSE All Share is up 68.2%1.



Manager's Comment



Equity markets were down slightly on the month as problems in the US subprime
mortgage market and related credit derivatives unnerved investors.  While an
increase in the cost of borrowing may ultimately end the private equity LBO
boom, it looks set to continue for now.  Too many listed companies are
attractive targets because they have under geared balance sheets and low price /
cash flow ratios.  Credit spreads in general have not widened significantly and
earnings growth is still healthy.  Until this picture changes, the risk / reward
in the equity markets remains appealing.





Statistics





                         Value       % 1 mo    % 1 yr     % 3 yr     % 5 yr
Price (£)1               460.0         -4.3       5.6       92.5      150.8
Net Asset Value1         499.5         -1.2      20.3      102.3      156.9
Net Asset Value Total  Return1         -1.2      18.8       96.8      145.6  
Benchmark2 (£)                         -1.0      17.7       69.4       81.9





Annual Returns (%)    2006        2005      2004       2003       2002
Price1                 0.3        51.7      36.0       41.6      -12.2
MSCI World1            5.8        23.0       7.2       20.6      -27.4

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





Top 10 Equity Holdings                                        %

Investor AB                                                3.75
Sofina                                                     3.25
Paris Orleans                                              3.19
Alliance Trust                                             2.80
Jardine Strategic                                          2.70
Lundbergforetagen                                          2.62
Electra Private Equity                                     2.32
Murchison Metals                                           2.26                                           
Hang Lung                                                  2.23
GBL                                                        2.20



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

** Updated annually





Gross Assets/Gearing

Gross Assets                                               £837 mil.
Debt                                                     £ 28.4 mil.
Actual Gearing (Debt less cash divided by net asset value)     -7.9%


Fund Codes

Bloomberg                                      Reuters Ticker / ISIN
BTEM                                                    GB0001335081





Geographical Breakdown

Continental Europe                                  26.3%
Japan                                               12.6%
Canada / US                                         13.4%
Asia Pacific                                        16.0%
UK                                                  20.4%
Liquidity                                           11.3%
EMEA                                                 0.0%


All figures as at 30 June 2007 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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            The company news service from the London Stock Exchange