Monthly Update

RNS Number : 0530K

British Empire Sec & Gen Tst PLC

12 December 2008

 



BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

This investment management report relates to performance figures as at 30 November 2008.

Over the month NAV was down 1.4%1. This compares to a decrease of 2.9%1 in the benchmark2 and a decrease of 1.4%1 for the MSCI World (£) index.

Financial* year to date, net asset value fell 15.4%1 compared to a decrease of 16.6%1 for the FundData IT Global Growth2  and 11.9%1 for the MSCI World (£) indices.

With effect from 1st October 2008 the Company has adopted the Fundamental Data Global Growth Investment Trust Index. This index has substantially the same elements as the Thomson Financial Datastream Global Growth Investment Trust Index but adopts the FTSE Actuaries methodology in computing the index, which the Board considers to be a more robust method, and is not survivor biased.

Manager's Comment

We have been gradually investing our cash into the equity markets as opportunities present themselves. The discounts on the type of companies that we follow are unusually wide.  Equities appear to be good value but investors are scared and feel no sense of urgency in investing today if the economy is going to be worse next year. The markets however, are discounting mechanisms and much of the bad news may be already priced in.  Many policy mistakes have been made by governments both here and abroad but a new administration in the US gives a chance for a fresh start next year. There is a lot of stimulus in the system now that has not gained traction due to extreme levels of risk aversion. If confidence can be rebuilt, it may not be too long before holding Treasuries on yields of 3% or less looks very unattractive and equities more interesting.

Statistics

	Value	% 1 mo	% 1 yr	% 3 yr	% 5 yr
Price (£)1	325.0	1.1	-30.5	-21.4	53.4
Net Asset Value1	332.7	-1.4	-31.5	-16.0	43.8
Net Asset Value Total Return1		-12.7	-1.4	-30.7	-13.2
Benchmark2 (£)		-2.9	-31.5	-11.6	26.8
Annual Returns (%)	2007	2006	2005	2004	2003
Price1	-2.8	0.3	51.7	36.0	41.6
MSCI World1	7.7	5.8	23.0	7.2	20.6

1 Source: Fundamental Data

2 Fundamental Data Investment Trust Global Growth Index official Benchmark from 1st October 2008.

Top 10 Equity Holdings    %

Investor AB	5.23
Sofina	4.78
Vivendi	4.34
GBL	4.16
Jardine Strategic	3.84
Jardine Matheson	3.56
Holmen	3.37
Paris Orléans	3.05
Pargesa	2.56
Lundbergforetagen	2.38

Capital Structure

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**	2,635,996

** Updated annually

Gross Assets/Gearing

Gross Assets	£561 mil.
Debt	27.4 mil.
Actual Gearing (Debt less cash divided by net asset value)	-11.0%

Fund Codes

Bloomberg	Reuters Ticker / ISIN
BTEM	GB0001335081

Geographical Breakdown

Continental Europe	39.9%
Japan	13.7%
Canada / US	2.5%
Asia Pacific	10.5%
UK	14.6%
Liquidity	15.5%
EMEA	3.3%

All figures as at 30 November 2008 unless otherwise stated. All sources Asset Value Investors Ltd unless otherwise stated. Asset Value Investors Limited ('AVI') is authorised and regulated by the Financial Services Authority of the United Kingdom (the 'FSA'). This document does not constitute an offer to buy or sell shares in the British Empire Securities and General Trust plc (the 'Trust'). Investors are reminded that past performance is not a guide to future performance and that their capital will be at risk and they may therefore lose some or all of the amounts that they choose to invest in the Trust. Investment in the Trust carries risks, which are more fully described in the prospectus. The contents of this message are not intended to constitute, and should not be construed as, investment advice. Potential investors in the Trust should seek their own independent financial advice. AVI neither provides investment advice to, nor receives and transmits orders from, investors in the Trust nor does it carry on any other activities with or for such investors that constitute 'MiFID or equivalent third country business' for the purposes of the FSA's rules.

British Empire Securities and General Trust plc, 54 St James's Street, London SW1A 1JT, United Kingdom. Registered in England & Wales No: 28203

 

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