Monthly Update

RNS Number : 0454G

British Empire Sec & Gen Tst PLC

16 October 2008

 



BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

This investment management report relates to performance figures as at 30 September 2008.

Over the month NAV was down 12.7%1. This compares to a decrease of 11.9%2 in the benchmark and a decrease of 10.0%1 for the MSCI World (£) index.

Financial* year to date, net asset value fell 21.2%1 compared to a decrease of 19.0%2 for the Datastream index and a decrease of 15.0%1 for the MSCI World (£).

Manager's Comment

Despite holding net cash of 13.6%, September was a very difficult month for the Trust. Following the decision of the US Treasury to allow Lehman Brothers to fail, the financial crisis entered a new and more dangerous phase. An almost total lack of availability of credit has led to institutional deleveraging and forced sales in the equity markets. Bargains are appearing in the equity markets, but fundamentals are currently overwhelmed by the weight of selling pressure.

Statistics

	Value	% 1 mo	% 1 yr	% 3 yr	% 5 yr
Price (£)1	396.0	-11.9	-15.8	2.4	102.9
Net Asset Value1	393.2	-12.7	-22.2	2.5	81.6
Net Asset Value Total Return1		-12.7	-21.2	6.0	90.2
Benchmark2 (£)		-11.9	-19.0	6.0	53.4
Annual Returns (%)	2007	2006	2005	2004	2003
Price1	-2.8	0.3	51.7	36.0	41.6
MSCI World1	7.7	5.8	23.0	7.2	20.6

Top 10 Equity Holdings                                           %

Sofina	5.11
Investor AB	4.57
Jardine Strategic	4.04
Jardine Matheson	3.71
Holmen	3.18
GBL	3.13
Vivendi	3.00
Paris Orléans	2.98
Electra Private Equity	2.65
Tupras Turkiye	2.30

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**	2,730,231

** Updated annually

Gross Assets/Gearing

Gross Assets	£673 mil.
Debt	28.6 mil.
Actual Gearing (Debt less cash divided by net asset value)	-13.6%

Fund Codes

Bloomberg	Reuters Ticker / ISIN
BTEM	GB0001335081

Geographical Breakdown

Continental Europe	36.6%
Japan	12.2%
Canada / US	2.8%
Asia Pacific	10.4%
UK	16.8%
Liquidity	17.1%
EMEA	4.1%

All figures as at 30 September 2008 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 of the United Kingdom (the 'FSA'). This document does not constitute an offer to buy or sell shares in the British Empire Securities and General Trust plc (the 'Trust'). 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. Investment in the Trust carries risks, which are more fully described in the prospectus. 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.

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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