Monthly Update - August

British Empire Sec & Gen Tst PLC
10 August 2004


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary


Investment management report with performance figures as at 30 July 2004.


Over the month NAV was down 0.8%1. This compares to a decrease in the benchmark
of 2.8%2 and a decrease of 3.2%1 and 1.5%1for the MSCI World (£) and FTSE All
Share indices respectively.


Financial year to date net asset value rose 17.0%1 compared to a rise of 7.7%2
for the Datastream index, 5.0%1 for the MSCI World (£) and 10.8%1 for the FTSE
All Share.


Over three years NAV is up 26.7%1 while the FTSE All Share is down 9.4%1.


Manager's Comment


Equity markets drifted lower on the month despite companies reporting earnings
growth on the whole.  The lack of a positive response to a good reporting season
may be down to summer doldrums with many market participants on holiday. There
is a suspicion, however, that economic growth and earnings may be already
peaking for this cycle and that equity market valuations are too rich.  If
global GDP growth is peaking, then the relative attractions of the bond markets,
which have sold off sharply earlier this year, may increase, drawing some
support away from the equity markets.


Statistics


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

Price (£)1                    240.5          -2.0       26.9         35.2        85.2

Net Asset Value1              253.0          -0.8       23.2         23.4        57.0

Net Asset Value Total Return1                -0.8       24.0         26.7        63.4

Benchmark2 (£)                               -2.8        8.3        -11.5        -8.9



Annual Returns (%)              2003             2002    2001           2000           1999

Price1                          41.6            -12.2     0.8           26.0           52.6

MSCI World1                     20.6            -27.4   -14.1           -5.8           28.6


1 Source: Fundamental Data

2 Datastream Global Growth Investment Trust Index(TR) Source: Thomson Financial

3 Benchmark index changed to Datastream Global Growth Investment Trust Index(TR)


Top 10 Equity Holdings                                        %



Eurazeo                                                    6.11

Hansa Trust plc                                            6.03

Henderson Electric & General                               4.20

Prospect Japan Fund Ltd                                    3.88

Jardine Strategic Holdings Ltd                             3.87

Law Debenture Corp                                         3.38

Encana Corp                                                2.73

Wendel Investissement                                      2.72

CNP                                                        2.53

European Asset Value Fund                                  2.20


Capital Structure as at 30 June 2004


Ordinary Shares                                     160,080,089

10 3/8% Debenture stock 2011                        £11,883,322

8 1/8% Debenture stock 2023                         £15,000,000

Equities index unsecured loan stock 2013              3,101,197


Gross Assets / Gearing as at 30 June 2004



Gross Assets                                             £440.5mil.

Debt                                                     £ 33.7mil.

Actual Gearing (Debt less cash dividend by net asset value)   -3.2%


Fund Codes


Bloomberg                                     Reuters Ticker / ISIN

BTEM                                          GB0001335081

Geographical Breakdown


Continental Europe                       29.0%

Japan                                    14.0%

Canada / US                               2.8%

Asia Pacific                             12.7%

UK                                       23.9%

Liquidity                                11.9%

EMEA                                      5.7%


All figures as at 30 July 2004.  All sources Asset Value Investor 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.


                      This information is provided by RNS
            The company news service from the London Stock Exchange