Monthly Update

British Empire Sec & Gen Tst PLC
29 October 2007


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

This investment management report relates to performance figures as at 30
September 2007.

Over the month NAV was up 4.5%1.  This compares to an increase in the benchmark
of 3.8%2, an increase of 3.7%1 and 1.9%1 for the MSCI World (£) and FTSE All
Share indices respectively.

Financial* year to date, net asset value rose 17.8%1 compared to a rise of
15.8%2 for the Datastream index, 11.6%1 for the MSCI World (£) and 12.2%1 for
the FTSE All Share.

Over three years NAV is up 93.8%1 while the FTSE All Share is up 60.6%1.

Manager's Comment

The NAV of British Empire finished the financial year with solid gains despite
equity market corrections in the spring and late summer.  A weak US housing
market has raised fears over the ability of the US economy to continue to grow.
A sharp fall in US mortgage backed securities has spilled over into a more
generalised credit crunch.  As a result, volatility in the equity markets has
picked up dramatically.  We have held a certain amount of liquidity throughout
the year to guard against uncertainty.  Wider discounts and increased volatility
have created opportunities to reinvest some of our cash.

Statistics



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

Price (£)1                    476.0       3.1       6.3        84.9       209.5
Net Asset Value1              505.3       4.5       16.4       88.5       192.9
Net Asset Value Total Return1             4.5       17.8       93.8       206.4
Benchmark2 (£)                            3.8       15.8       30.6       121.6

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                                                        4.07
Sofina                                                             3.30
Jardine Strategic                                                  3.11
Jardine Matheson                                                   2.74
Paris Orleans                                                      2.74
Electra Private Equity                                             2.69
Hang Lung                                                          2.60
GBL                                                                2.59
Deutsche Wohnen                                                    2.25
Lundbergforetagen                                                  2.24

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
          
** Updated annually

Gross Assets/Gearing
Gross Assets                                                   £846 mil.
Debt                                                         £ 29.0 mil.
Actual Gearing (Debt less cash divided by net asset value)        -12.0%

Fund Codes

Bloomberg                                           Reuters Ticker/ ISIN
BTEM                                                        GB0001335081

Geographical Breakdown

Continental Europe                                                 27.4%
Japan                                                              10.0%
Canada / US                                                        14.4%
Asia Pacific                                                       14.8%
UK                                                                 18.2%
Liquidity                                                          15.2%

All figures as at 30 September 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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