Monthly Report 10.2004

British Empire Sec & Gen Tst PLC
12 October 2004



BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

Investment management report with performance figures as at 30 September 2004.



Over the month NAV was up 5.8%1.  This compares to an increase in the benchmark
of 2.5%2 and an increase of 2.2%1 and 2.8%1for the MSCI World (£) and FTSE All
Share indices respectively.



For the full financial year, net asset value rose 25.2%%1 compared to a rise of
12.0%2 for the Datastream index, 8.9%1 for the MSCI World (£) and 15.7%1 for the
FTSE All Share.



Over three years NAV is up 49.2%1 while the FTSE All Share is up 7.0%1.





Manager's Comment



The financial year has ended with the Trust significantly ahead of its benchmark
indices.



During the past month, strength was seen in the mining stocks as it became clear
that administrative measures in China are doing little to dampen booming demand
for industrial commodities.  The Trust has just over 10% of its total assets in
resource stocks including mining and energy companies.  We believe that some
exposure to resource stocks is necessary at a time when rising energy and base
metal prices may hurt profitability in other sectors of the market.





Statistics



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

Price (£)1                         264.5        9.5    30.2      63.0     102.9
Net Asset Value1                   270.6        5.8    24.4      45.3      69.6
Net Asset Value Total Return1                   5.8    25.2      49.2      76.5 
Benchmark2 (£)                                  2.5    12.0       7.5      -2.5



Annual Returns (%)                  2003       2002    2001      2000      1999
Price1                              41.6      -12.2     0.8      26.0      52.6
MSCI World1                         20.6      -27.4   -14.1      -5.8      28.6





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                            %
Hansa Trust pc                                 5.91
Eurazeo                                        5.68
Henderson Electric & General                   4.57
Jardine Strategic Holdings Ltd                 4.46
Law Debenture Corp                             3.47
Prospect Japan Fund                            3.46
Wendel Investissement                          3.03
CNP                                            2.71
Encana Corp                                    2.68
European Asset Value Fund                      2.23





Capital Structure as at 30 September 2004



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        3,061,267



Gross Assets / Gearing as at 30 September 2004



Gross Assets                                                   £465.3mil.
Debt                                                           £ 30.7mil.
Actual Gearing (Debt less cash dividend by net asset value)        -5.9%





Fund Codes



Bloomberg                                   Reuters Ticker / ISIN
BTEM                                        GB0001335081





Geographical Breakdown



Continental Europe                               27.4%
Japan                                            12.2%
Canada / US                                       4.8%
Asia Pacific                                     13.8%
UK                                               24.8%
Liquidity                                        12.2%
EMEA                                              4.8%



All figures as at 30 September 2004.  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.


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