Monthly Update

British Empire Sec & Gen Tst PLC
17 October 2006


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary

This investment management report relates to performance figures as at 30
September 2006.

Over the month NAV was up 1.2%1.  This compares to an increase in the benchmark
of 2.3%2, and an increase of 1.4%1 and 3.1%1 for the FTSE All Share and the MSCI
World (£) indices respectively.

Financial year to date, net asset value rose 13.5%1 compared to a rise of 12.6%2
for the Datastream index, 8.7%1 for the MSCI World (£) and 14.7%1 for the FTSE
All Share.

Over three years NAV is up 103.7%1 while the FTSE All Share is up 65.7%1.


Manager's Comment

The NAV finished the financial year up 13.5%, which is just ahead of our
benchmark index.  Following, as it does, three very strong years in the markets,
we still have concerns over the valuations on offer.  We have, therefore, held
significant liquidity throughout the year.  We are pleased that we have been
able to out perform the benchmark despite our more conservative liquidity
stance.


Statistics

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

Price (£)1                      453.5      0.4     14.4     126.6      183.6
Net Asset Value1                431.4      1.2     12.5      99.2      132.8
Net Asset Value Total Return1              1.2     13.5     103.7      142.9
Benchmark2 (£)                             2.3     12.6      63.0       57.5

Annual Returns (%)               2005     2004     2003      2002       2001

Price1                           51.7     36.0     41.6     -12.2        0.8
MSCI World1                      23.0      7.2     20.6     -27.4      -14.1


1 Source: Fundamental Data

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


Top 10 Equity Holdings                                        %

Investor AB                                                3.30
Alliance Trust                                             3.11
Jardine Strategic                                          2.61
Tokyu Corporation                                          2.49
Sofina                                                     2.36
Electra Private Equity                                     2.25
Hutchison Whampoa                                          2.07
NTT Urban Development                                      2.03
Paris Orleans                                              2.01
Lundbergforetagen                                          2.00


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                                                     £734 mil.
Debt                                                            £30.4 mil.
Actual Gearing (Debt less cash divided by net asset value)          -18.1%


Fund Codes

Bloomberg                                             Reuters Ticker/ ISIN
BTEM                                                  GB0001335081


Geographical Breakdown

Continental Europe                                   20.0%
Japan                                                14.6%
Canada / US                                           4.5%
Asia Pacific                                         13.0%
UK                                                   24.4%
Liquidity                                            21.3%
EMEA                                                  2.2%

All figures as at 30 September 2006 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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