Monthly Update

British Empire Sec & Gen Tst PLC
16 June 2006


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary

This investment management report relates to performance figures as at 31 March
2006.

Over the month NAV was up 3.4%1.  This compares to an increase in the benchmark
of 3.5%2, and an increase of 3.8%1  and 3.2%1 for the FTSE All Share and MSCI
World (£) indices respectively.

Financial year to date, net asset value rose 21.5%1 compared to a rise of 16.4%2
for the Datastream index, 12.3%1 for the MSCI World (£) and 12.7%1 for the FTSE
All Share.

Over three years NAV is up 182.7%1 while the FTSE All Share is up 93.8%1.


Manager's Comment

First half performance for British Empire has been strong with standout returns
from mining stocks, Japan, and UK ports companies.  Global economic growth is
now more balanced with Japan and Europe now carrying some of the burden
alongside the US.  While that is a positive, the potential negative for equity
markets is rising interest rates in the US, Europe, and Japan which may remove
some of the speculative 'fuel' for the markets.


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

Price (£)1                    483.0      3.2      48.0      228.7      165.6
Net Asset Value1              462.7      3.4      47.3      176.4      123.6
Net Asset Value Total Return1            3.4      48.6      182.7      133.2
Benchmark2 (£)                           3.5      35.2      100.3       37.1

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                                    3.39
Deutsche Wohnen                                2.88
Jardine Strategic                              2.73
Vivendi                                        2.17
Paladin Resources                              2.11
Alliance Trust                                 2.09
Lundbergforetagen                              2.01
Forth Ports                                    1.95
Tokyu Corporation                              1.95
NTT Urban Development                          1.90


Capital Structure as at 31 March 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  2,906,267


Gross Assets/Gearing as at 31 March 2005

Gross Assets                                               £773 mil.
Debt                                                     £ 39.7 mil.
Actual Gearing (Debt less cash divided by net asset value)     11.5%


Fund Codes

Bloomberg                                      Reuters Ticker / ISIN
BTEM                                                    GB0001335081


Geographical Breakdown

Continental Europe                            23.0%
Japan                                         16.1%
Canada / US                                    4.3%
Asia Pacific                                  16.0%
UK                                            21.4%
Liquidity                                     16.1%
EMEA                                           3.1%


All figures as at 31 March 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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            The company news service from the London Stock Exchange