Monthly Update

British Empire Sec & Gen Tst PLC
15 November 2006

BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC



Performance Commentary

This investment management report relates to performance figures as at 31
October 2006.

Over the month NAV was up 1.3%1.  This compares to an increase in the benchmark
of 1.9%2, and an increase of 3.0%1 and 1.6%1 for the FTSE All Share and the MSCI
World (£) indices respectively.

Over three years NAV is up 97.4%1 while the FTSE All Share is up 62.7%1.



Manager's Comment

The performance of the Japanese stock market has been disappointing this year.
This is despite the fact that fundamentally Japan looks interesting.  Japanese
banks have dealt with their bad loan problems. Land prices in Japan appear to
have bottomed out in major cities and are starting to move up again.  Corporate
Japan is on track for record profits and corporate restructuring has led to
rising ROEs.  Part of the explanation for the poor performance of the stock
market may be the draining of liquidity from the system by the Bank of Japan
following the end of its 'quantitative easing' policy.  This has implications
for other markets also.  If the Bank of Japan tightens policy too quickly one
would expect to see a strengthening of the Yen and perhaps an unwinding
of carry trade speculation similar to what we saw in May.



Statistics





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

Price (£)1                 453.8      0.1      14.7      117.0       167.8

Net Asset Value1           436.7      1.3      16.7       93.0       125.2

Net Asset Value Total Return1         1.3      17.7       97.4       134.9

Benchmark2 (£)                        1.9      18.1       59.8        54.8



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                                                          3.44

Alliance Trust                                                       3.16

Jardine Strategic                                                    2.63

Tokyu Corporation                                                    2.37

Sofina                                                               2.32

Electra Private Equity                                               2.26

NTT Urban Development                                                2.13

Lundbergforetagen                                                    2.05

Hutchison Whampoa                                                    2.02

Paris Orleans                                                        1.96



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                                                     £740 mil.

Debt                                                            £30.9 mil.

Actual Gearing (Debt less cash divided by net asset value)          -16.2%





Fund Codes



Bloomberg                                              Reuters Ticker / ISIN

BTEM                                                   GB0001335081





Geographical Breakdown



Continental Europe                                       20.5%

Japan                                                    15.3%

Canada / US                                               5.0%

Asia Pacific                                             12.8%

UK                                                       24.8%

Liquidity                                                19.4%

EMEA                                                      2.2%



All figures as at 31 October 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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