Monthly Update

British Empire Sec & Gen Tst PLC
14 June 2005


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

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

Over the month NAV was up 4.7%1.  This compares to an increase in the benchmark
of 4.8%2, and an increase of 6.7%1 and 3.9%1 for the MSCI World (£) and FTSE All
Share indices respectively.

Financial year to date, net asset value rose 19.7%1 compared to a rise of 12.1%2
for the Datastream index, 9.0%1 for the MSCI World (£) and 11.6%1 for the FTSE
All Share.

Over three years NAV is up 51.7%1 while the FTSE All Share is up 11.0%1.



Manager's Comment

World equity markets went up sharply in May and our performance was aided by a
generally weaker Sterling against major currencies (except the Euro).  Our
decision to place a substantial portion of our liquidity in short dated US
Treasuries had a small beneficial effect.

Despite our impression that there is generally less value around in equity
markets, we have been finding some opportunities in our universe of value stocks
and liquidity has reduced somewhat.

The NAV has benefited from takeover approaches or speculation regarding the same
in Mersey Docks, Deutsche Wohnen, and Tethyan Copper.





Statistics

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

Price (£)1                    322.8      4.8        36.5       67.3      119.4
Net Asset Value1              320.3      4.5        31.2       48.1       70.6
Net Asset Value Total Return1            4.7        32.0       51.7       77.4      
Benchmark2 (£)                           4.8        16.5       9.5        -8.7



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                           4.15
Law Debenture                               3.41
Eurazeo                                     2.74
Prospect Japan                              2.63
CNP                                         2.58
Hansa Trust                                 2.43
European Asset Value Fund                   2.21
Lundbergs                                   2.08
Investor                                    1.95
Deutsche Wohnen                             1.89



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     2,981,267



Gross Assets / Gearing as at 31 March 2005

Gross Assets                                                     £529.0mil.
Debt                                                             £ 30.9mil.
Actual Gearing (Debt less cash dividend by net asset value)          -12.5%



Fund Codes

Bloomberg                             Reuters Ticker / ISIN
BTEM                                  GB0001335081



Geographical Breakdown

Continental Europe                    26.3%
Japan                                 13.4%
Canada / US                            4.9%
Asia Pacific                          12.0%
UK                                    18.4%
Liquidity                             15.3%
EMEA                                   9.7%



All figures as at 31 May 2005.  All sources Asset Value Investor 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