Monthly Update

British Empire Sec & Gen Tst PLC
15 September 2005


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary


This investment management report relates to performance figures as at 31 August
2005.

Over the month NAV was up 0.3%1.  This compares to an increase in the benchmark
of 0.04%2 and 1.2%1 for the FTSE All Share, and a decrease of 1.3%1 for the MSCI
World (£) indices.

Financial year to date, net asset value rose 35.7%1 compared to a rise of 22.0%2
for the Datastream index, 16.4%1 for the MSCI World (£) and 20.7%1 for the FTSE
All Share.

Over three years NAV is up 96.0%1 while the FTSE All Share is up 44.0%1.


Manager's Comment

The markets paused in August after a strong rally over the summer.  We have felt
for a while that valuations were becoming less supportive of markets and we have
allowed our liquidity position to rise.  In addition to valuations, the equity
markets will have to contend with elevated energy prices and tighter monetary
conditions from the US Federal Reserve.

On a brighter note, the decision of Japanese Prime Minister Koizumi to dissolve
the Diet and call new elections over the issue of postal reform shows his
determination to overhaul the Japanese economic and political system.  A Koizumi
victory would be good for the market and Japanese stocks are continuing their
good run of late.


Statistics


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

Price (£)1                        382.3      0.6      59.1      125.5      132.5

Net Asset Value1                  363.0      0.3      41.9       91.2       76.0

Net Asset Value Total Return1                0.3      42.8       95.7       83.1
Benchmark2 (£)                               0.0      25.4       43.0       -7.4

Annual Returns (%)                 2004     2003      2002       2001       2000

Price1                             36.0     41.6     -12.2        0.8       26.0

MSCI World1                         7.2     20.6     -27.4      -14.1       -5.8


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                                        %

Jardine Strategic                                          2.96
Prospect Japan                                             2.82
Hansa Trust                                                2.66
Law Debenture Corp                                         2.47
European Asset Value Fund                                  2.40
PD Ports                                                   2.34
Fording Canadian Coal                                      2.32
Paris Orleans                                              2.14
CNP                                                        2.10
Deutsche Wohnen                                            2.06



Capital Structure as at 30 June 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              2,981,267


Gross Assets/Gearing as at 30 June 2005

Gross Assets                                          £590 mil.
Debt                                                £ 30.9 mil.

Actual Gearing (Debt less cash divided by 
net asset value)                                         -10.0%


Fund Codes

Bloomberg                                 Reuters Ticker / ISIN
BTEM                                      GB0001335081


Geographical Breakdown

Continental Europe                                       23.9%
Japan                                                    14.7%
Canada / US                                               6.6%
Asia Pacific                                             11.9%
UK                                                       17.5%
Liquidity                                                15.2%
EMEA                                                     10.2%


All figures as at 31 August 2005.  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.


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