Monthly Update

RNS Number : 7315N

British Empire Sec & Gen Tst PLC

23 February 2009

 



BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

This investment management report relates to performance figures as at 31 January 2009.

Over the month NAV was down 5.3%1. This compares to a decrease of 6.1%1 in the benchmark2 and a decrease of 9.1%1 for the MSCI World (£) index.

Financial year* to date, net asset value fell 10.2%1 compared to a decrease of 14.4%1 for the FundData IT Global Growth2  and 11.6%1 for the MSCI World (£) indices.

Manager's Comment

Equity markets have continued to be weak in the first month of 2009. Hopes were built up of a US attempt to deal with the banking crisis and were subsequently disappointed. Unfortunately, there is no quick fix to the problems of the overleveraged financial system and we will have to live with heightened uncertainty for some time. Within the overall very difficult markets, value stocks may be able to start to show greater resiliency given that they are, in many cases, trading on historically wide discounts and there is scope for those discounts to narrow.

Statistics

	Value	% 1 mo	% 1 yr	% 3 yr	% 5 yr
Price (£)1	337.8	1.9	-21.0	-25.7	59.3
Net Asset Value1	347.5	-5.3	-25.1	-21.7	45.8
Net Asset Value Total Return1		12.1	-5.3	-23.6	-18.3
Benchmark1 (£)		-6.1	-25.1	-16.6	26.3
Annual Returns (%)	2008	2007	2006	2005	2004
Price1	-22.3	-2.8	0.3	51.7	36.0
MSCI World1	-17.4	7.7	5.8	23.0	7.2

1 Source: Fundamental Data. Share price total return is on a mid-to-mid basis, with net income re-invested.

2 Fundamental Data Investment Trust Global Growth Index official Benchmark from 1st October 2008

Top 10 Equity Holdings    %

Sofina	5.20
Investor AB	4.41
GBL	4.26
Jardine Strategic	4.21
Vivendi	4.05
Jardine Matheson	4.03
Holmen	2.95
Deutsche Wohnen	2.84
Paris Orléans	2.75
Tokyu	2.60

Capital Structure

Ordinary Shares	160,080,089
10 3/8% Debenture stock 2011	£8,514,940
8 1/8% Debenture stock 2023	£15,000,000
Equities index unsecured loan stock 2013**	2,635,996

** Updated annually

Gross Assets/Gearing

Gross Assets	£587 mil.
Debt	28.1 mil.
Actual Gearing (Debt less cash divided by net asset value)	-10.2%

Fund Codes

Bloomberg	Reuters Ticker / ISIN
BTEM	GB0001335081

Geographical Breakdown

Continental Europe	39.3%
Japan	13.7%
Canada / US	3.4%
Asia Pacific	10.5%
UK	15.1%
Liquidity	14.5%
EMEA	3.5%

Further Information

Investment Manager - John Pennink, AVI Ltd. 

[phone] [e-mail]

The share price can be found under 'INVESTMENT COMPANIES' in The Financial Times, The Times, The Daily Telegraph, The Scotsman and The Evening Standard.

*British Empire Securities & General Trust financial year commences on the 1st of October.

** Last audited figure updated annually

Information may be found on the following websites.

www.british-empire.co.uk or www.assetvalueinvestors.com

All figures as at 31 January 2009 unless otherwise stated. All sources Asset Value Investors Ltd unless otherwise stated. Asset Value Investors Limited ('AVI') is authorised and regulated by the Financial Services Authority ('FSA'). This document does not constitute an offer to buy or sell shares in the British Empire Securities and General Trust plc (the 'Trust'). The contents of this message are not intended to constitute, and should not be construed as, investment advice. Potential investors in the Trust should seek their own independent financial advice. AVI neither provides investment advice to, nor receives and transmits orders from, investors in the Trust nor does it carry on any other activities with or for such investors that constitute 'MiFID or equivalent third country business' for the purposes of the FSA's rules.

Risk Factors you should consider before investing

Investment in the British Empire Securities and General Trust plc (the 'Trust') carries risks, which are more fully described in the Key Features Document.  Listed below are some of the key risks:

Investors are reminded that past performance is not a guide to future performance and that their capital will be at risk and they may therefore lose some or all of the amounts that they choose to invest in the Trust.

The Trust utilises gearing techniques (leverage) which exaggerate market movements both down and up and which could mean sudden and large falls in market value.

Movements in exchange rates can impact both the level of income received and the capital value of your investment. If the currency of your residence strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will reduce and vice versa.

As with all stock exchange investments the value of investment trust shares will immediately fall by the difference between the buying and selling prices.

Where investments are made in emerging market, unquoted securities or smaller companies, their potential volatility may increase the risk to the value of, and the income from the investment.

British Empire Securities and General Trust plc, 54 St James's Street, London SW1A 1JT, United Kingdom. Registered in England & Wales No: 28203

 

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