Monthly Update Sept 04

British Empire Sec & Gen Tst PLC
15 September 2004



BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary

Over the month NAV was up 2.5% 1. This compares to an increase in the benchmark
of 1.3% 2 and an increase of 1.4% 1 and 1.6% 1for the MSCI World (£) and FTSE 
All Share indices respectively.



Financial year to date net asset value rose 19.2%%1 compared to a rise of 9.2%2
for the Datastream index, 6.5%1 for the MSCI World (£) and 12.6% 1 for the FTSE
All Share.



Over three years NAV is up 28.5% 1 while the FTSE All Share is down 5.7% 1.





Manager's Comment

Turnover in the equity markets has been extremely thin in August and nowhere has
this been truer than in the investment trust sector.  As a result, discounts
have, in many cases, been left languishing at the wider end of their ranges.
Hopefully, this picture will change when fund managers return to their desks in
September.  Early in the month, we have already seen the Board of Henderson
Electric and General (HEG) announce a proposal for a change of manager and a 50%
tender.  HEG is one of our larger positions and the announcement should not only
create value for our holding but, perhaps, focus attention on the excessive
discounts on some other trusts.  An increase in corporate activity in the
investment trust sector generally would serve to narrow discounts and that would
be positive for our NAV.



Statistics


                  Value   % 1 mo   % 1 yr  % 3 yr  % 5 yr
Price (£)1       241.8p     0.5     19.6    34.6    83.5
Net Asset Value1 257.6p     2.5     18.6    25.1    58.9
Net Asset Value Total       2.5     19.4    28.5    65.3
Return 1
Benchmark 2 (£)             1.3      6.6    -6.2    -8.3


Annual Returns    2003     2002     2001    2000    1999
(%)
Price 1           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 UK Datastream Investment Trust Index(TR) Source: Datastream

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





Top Ten Equity Holdings                                    %

Hansa Trust plc                                         6.28

Eurazeo                                                 5.48

Henderson Electric & General                            4.19

Jardine Strategic Holdings Limited                      3.94

Prospect Japan Fund Ltd                                 3.87

Law Debenture Corp plc                                  3.32

Wendel Investissement                                   2.84

CNP                                                     2.61

Encana Corp                                             2.48

European Asset Value Fund                               2.23

TOTAL                                                  37.24





Capital Structure

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

Gross Assets                                          £440.5 million

Debt                                                  £33.7 million

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











Fund Codes

Bloomberg                               Reuters Ticker/ISIN

BTEM                                    GB0001335081





Geographic Breakdown (% of total assets)



Continental Europe                   28.0%

Japan                                13.1%

Canada/US                             2.5%

Asia Pacific                         13.0%

UK                                   24.0%

Liquidity                            14.1%

EM EA                                5.3 %





Further Information



Investment Manager - John Pennink, AVI Limited

[phone]     [e-mail]



Information may be found on the following websites:

http://www.british-empire.co.uk/ or http://www.assetvalueinvestors.com/



All figures as at 31 August 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.






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