Monthly Update

British Empire Sec & Gen Tst PLC
14 August 2007

BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC



Performance Commentary

This investment management report relates to performance figures as at 31 July
2007.

Over the month NAV was down 1.2%1.  This compares to a decrease in the benchmark
of 1.7%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 15.9%1 compared to a rise of
12.7%2 for the Datastream index, 6.8%1 for the MSCI World (£) and 10.4%1 for the
FTSE All Share.

Over three years NAV is up 102.3%1 while the FTSE All Share is up 68.2%1.



Manager's Comment

Losses in the sub-prime mortgage market are leading to a welcome re-assessment
and re-pricing of risk in the debt markets.  Credit spreads had become too tight
and investors were not being compensated for the risks they were taking.  This
process is having a knock-on effect on the equity markets as the prospects for
more costly borrowing ripple through other markets.  The negative effects are
also exaggerated by weak summer investor appetite.

We have sold one or two holdings recently, including our Alliance Trust, and our
net cash weighting is close to 14%.  We intend to use further market weakness to
start re-building our market exposure.




Statistics




                       Value   % 1 mo    % 1 yr     % 3 yr  %5 yr
Price (£)1             473.0     -4.3     5.6        92.5    150.8

Net Asset Value1       496.6     -1.2    18.8        96.8    145.6

Net Asset Value Total Return1    -1.2    20.3       102.3    156.9

Benchmark2 (£)                   -1.7    16.1        70.4     94.0





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                        3.77

Paris Orleans                      3.43

Sofina                             3.31

Jardine Strategic                  2.64

Electra Private Equity             2.59

Lundbergforetagen                  2.58

GBL                                2.37

Hang Lung                          2.31

Hutchison Whampoa                  2.17

Jardine Matheson                   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

** Updated annually





Gross Assets/Gearing



Gross Assets                                £831 mil.

Debt                                      £ 29.1 mil.

Actual Gearing (Debt less cash divided 
by net asset value)                        -14.0%





Fund Codes



Bloomberg                              Reuters Ticker / ISIN
BTEM                                   GB0001335081





Geographical Breakdown

Continental Europe                       27.5%

Japan                                    10.9%

Canada / US                              12.8%

Asia Pacific                             13.8%

UK                                       18.0%

Liquidity                                17.0%

EMEA                                      0.0%



All figures as at 31 July 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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