Monthly Update

British Empire Sec & Gen Tst PLC
15 February 2006


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC



Performance Commentary



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

Over the month NAV was up 4.2%1.  This compares to an increase in the benchmark
of 3.3%2, and an increase of 2.9%1  and 0.9%1 for the FTSE All Share and MSCI
World (£) indices respectively.

Financial year to date, net asset value rose 16.5%1 compared to a rise of 10.6%2
for the Datastream index, 7.3%1 for the MSCI World (£) and 7.3%1 for the FTSE
All Share.

Over three years NAV is up 163.9%1 while the FTSE All Share is up 70.0%1.



Manager's Comment



Equity markets were strong again, with resource stocks showing particular
strength.  As happened earlier in the energy sector, analysts are starting to
incorporate higher commodity prices into their long term models.

While corrections may be expected from today's overheated metals markets, the
increasing demand from China is meeting, in most cases, a limited supply
response and higher than historical average prices may be expected for some time
to come.





Statistics





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

Price (£)1                      474.0      3.8      50.8     214.7     155.9

Net Asset Value1                443.5      3.7      46.0     156.8     106.1
Net Asset Value Total Return1              4.2      48.1     163.9     116.0
Benchmark2 (£)                             3.3      30.6     91.5      15.8



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                         %

Prospect Japan                                 2.83
Jardine Strategic                              2.74
PD Ports                                       2.59
Deutsche Wohnen                                2.55
Investor AB                                    2.52
Fording Canadian Coal                          2.03
Vivendi                                        2.03
JPM Fleming Japan Smaller Co's                 1.92
Forth Ports                                    1.83
Boskalis Westminster                           1.76



Capital Structure as at 31 December 2005


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     2,906,267



Gross Assets/Gearing as at 31 December 2005


Gross Assets                                 £717 mil.
Debt                                       £ 31.6 mil.

Actual Gearing (Debt less cash 
divided by net asset value)                      4.4%




Fund Codes

Bloomberg                                   Reuters Ticker / ISIN                                             
BTEM                                        GB0001335081




Geographical Breakdown


Continental Europe                             25.0%
Japan                                          15.9%
Canada / US                                     7.3%
Asia Pacific                                   14.0%
UK                                             25.1%
Liquidity                                       8.5%
EMEA                                            4.2%



All figures as at 31 January 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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