Monthly Update

British Empire Sec & Gen Tst PLC
19 February 2007


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary

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

Over the month NAV was up 2.0%1.  This compares to an increase in the benchmark
of 0.5%2 and 1.2%1 for the MSCI World (£), and a decrease of 0.3%1 for the FTSE
All Share indices.

Financial* year to date, net asset value rose 7.3%1 compared to a rise of 6.4%2
for the Datastream index, 4.8%1 for the MSCI World (£) and 5.9%1 for the FTSE
All Share.

Over three years NAV is up 98.8%1 while the FTSE All Share is up 61.8%1.



Manager's Comment

The liquidity position has reduced somewhat as we have added to our wider
discount holdings and have started a couple of new holdings in the energy
sector.  Markets so far this year have been buoyant based on expectations for
further strong economic growth and moderate inflation.  While we have been
cautious of fully embracing the bull case for stocks, we have managed to find
some investments that we think give us some upside and, at the same time have
strong asset backing that could, hopefully, limit the downside in case of a
setback.  The recent performance of Japanese stocks, one of last year's
laggards, has also been encouraging.



Statistics

                              Value     % 1 mo    % 1 yr     % 3 yr     % 5 yr
Price (£)1                    445.0      -1.7       -5.1      103.4      149.2
Net Asset Value1              461.3       2.0        4.0       93.5      129.4
Net Asset Value Total Return1             2.0        5.2       98.8      139.7
Benchmark2 (£)                            0.5        8.1       60.6       52.8



Annual Returns (%)         2005      2004       2003       2002       2001
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                          3.94
Alliance Trust                       3.03
Jardine Strategic                    2.92
Sofina                               2.90
Paris Orleans                        2.78
Electra Private Equity               2.47
Lundbergforetagen                    2.39
NTT Urban Development                2.29
Hutchison Whampoa                    2.25
Tokyu Corporation                    2.19



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                                                  £771 mil.
Debt                                                        £ 29.4 mil.
Actual Gearing (Debt less cash divided by net asset value)        -9.1%





Fund Codes

Bloomberg                                           Reuters Ticker / ISIN
BTEM                                                GB0001335081



Geographical Breakdown

Continental Europe                24.3%
Japan                             15.0%
Canada / US                        7.0%
Asia Pacific                      14.5%
UK                                24.3%
Liquidity                         12.6%
EMEA                               2.3%



All figures as at 31 January 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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