Monthly Update

British Empire Sec & Gen Tst PLC
20 June 2007



BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

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

Over the month NAV was up 4.4%1.  This compares to an increase in the benchmark
of 3.2%2, and an increase of 2.5%1 for the MSCI World (£) and 4.0%1 the FTSE All
Share indices.

Financial* year to date, net asset value rose 17.9%1 compared to a rise of
15.6%2 for the Datastream index, 13.0%1 for the MSCI World (£) and 15.1%1 for
the FTSE All Share.

Over three years NAV is up 113.8%1 while the FTSE All Share is up72.0%1.



Manager's Comment

Equity markets were strong again in May.  It appears that the return on equity
in the stock market still comfortably exceeds the cost of funding for private
equity players and strategic buyers, thus inciting bids.  This situation may
continue for some time until a spike in interest rates or a fall in ROE brings
an end to the profitability of these trades.

Discounts on our universe of stocks has widened slightly so we feel more
comfortable that we have a greater 'margin of safety' than in recent years.
This has allowed us to become more fully invested.





Statistics





                   Value     % 1 mo       % 1 yr        % 3 yr     % 5 yr
Price (£)1         480.5      1.8            8.1         107.5      154.3
Net Asset Value1   505.3      4.2           19.8         108.0      134.9
Net Asset Value Total Return1 4.4           21.3         113.8      145.7
Benchmark2 (£)                3.2           19.8          74.4       64.6


Annual Returns (%)  2006     2005           2004          2003       2002
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                     3.78
Sofina                          3.30
Paris Orleans                   2.92
Jardine Strategic               2.91
Alliance Trust                  2.87
Electra Private Equity          2.50
NTT Urban Development           2.48
Lundbergforetagen               2.48
GBL                             2.25
Heineken Holding                2.09


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                £846 mil.
Debt                      £ 29.5 mil.
Actual Gearing (Debt 
less cash divided by 
net asset value)               -7.7%



Fund Codes

Bloomberg                     Reuters Ticker / ISIN
BTEM                                   GB0001335081



Geographical Breakdown

Continental Europe             25.9%
Japan                          13.4%
Canada / US                    13.2%
Asia Pacific                   15.2%
UK                             21.3%
Liquidity                      11.0%
EMEA                            0.0%



All figures as at 31 May 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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            The company news service from the London Stock Exchange