Monthly update

British Empire Sec & Gen Tst PLC
21 July 2005


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

This investment management report relates to performance figures as at 30 June
2005.

Over the month NAV was up 5.7%1.  This compares to an increase in the benchmark
of 3.4%2, and an increase of 2.6%1 and 3.4%1 for the MSCI World (£) and FTSE All
Share indices respectively.

Financial year to date, net asset value rose 26.5%1 compared to a rise of 16.0%2
for the Datastream index, 11.9%1 for the MSCI World (£) and 15.4%1 for the FTSE
All Share.

Over three years NAV is up 70.0%1 while the FTSE All Share is up 25.3%1.


Manager's Comment

The NAV rose strongly on the month in part because of a rally in Turkish stocks
and a weaker Sterling against most currencies.

We are still seeing strong interest in value stocks in the market which is good
for current performance but makes finding tomorrow's winners more difficult.  We
prefer to have some liquidity on hand should investor's appetite for 'value'
reduce due to unforeseen circumstances, and discounts widen.

Statistics

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

Price (£)(1)                   347.0        7.5       42.2      85.3      129.8

Net Asset Value(1)             338.5        5.7       32.7      65.7       71.9

Net Asset Value Total Return(1)             5.7       33.5      69.6       78.9

Benchmark(2) (£)                            3.4       17.4      23.7       -7.8



Annual Returns (%)              2004       2003       2002      2001       2000

Price(1)                        36.0       41.6      -12.2       0.8       26.0

MSCI World(1)                    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                                                      3.63
Law Debenture                                                          3.18
Eurazeo                                                                2.67
CNP                                                                    2.58
Prospect Japan                                                         2.57
Hansa Trust                                                            2.51
European Asset Value Fund                                              2.28
Deutsche Wohnen                                                        1.97
Lundbergs                                                              1.95
Investor                                                               1.91

Capital Structure as at 30 June 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 30 June

Gross Assets                                                     £529.0mil.
Debt                                                             £ 30.9mil.
Actual Gearing (Debt less cash dividend by net asset value)          -10.0%


Fund Codes

Bloomberg                                            Reuters Ticker / ISIN
BTEM                                                          GB0001335081


Geographical Breakdown

Continental Europe                                                   27.2%
Japan                                                                12.9%
Canada / US                                                           6.7%
Asia Pacific                                                         11.6%
UK                                                                   16.6%
Liquidity                                                            14.7%
EMEA                                                                 10.3%

All figures as at 30 June 2005.  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.


                      This information is provided by RNS
            The company news service from the London Stock Exchange