Monthly Update February 2004

British Empire Sec & Gen Tst PLC
01 March 2004

BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC





Performance Commentary

Over the month NAV was up 1.9%1. This compares to an increase in the benchmark
of 1.2%2 and decreases of 0.5%1 and 0.9%1for the MSCI World (£) and FTSE All
Share indices respectively.





Manager's Comment

Our performance has been helped by a further narrowing of discounts in some of
our larger holdings.  Rue Imperiale, for instance, has seen its discount to NAV
narrow following speculation in the French press of a merger between Rue
Imperiale and its 45% owned subsidiary, Eurazeo.  Rue Imperiale is still on a
decent discount even after recent share price rises.



We are seeking to preserve our 'margin of safety', that is, a wide discount to
our underlying assets through a rotation out of funds and companies whose prices
are approaching NAV and into wider discount situations.





Statistics


                  Value   % 1 mo   % 1 yr  % 3 yr  % 5 yr
Price (£)1       224.5p      -      46.9    19.4    130.8
Net Asset Value1 234.9p     1.9     38.7    11.3    85.0
Net Asset Value Total       1.9     39.7    14.3    92.5
Return1
Benchmark2 (£)              1.2     28.8    -25.0    1.5


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 UK Datastream Investment Trust Index(TR) Source: Datastream





Top Ten Equity Holdings                                    %

Rue Imperiale                                                          6.7

Hansa Trust plc                                                        5.7

Wendell Investissement                                                 4.3

Law Debenture Corp plc                                                 3.7

Henderson Electric & General                                           3.6

Prospect Japan Fund Ltd                                                3.5

Jardine Strategic Holdings Limited                                     3.3

Investor AB                                                            2.5

Encana Corp                                                            2.5

Groupe Bruxelles Lambert SA                                            2.3

TOTAL                                                                 38.1





Capital Structure

Ordinary Shares                                               160,080,089

10 3/8% Debenture Stock 2011                                  £11,883,322
  
8 1/8% Debenture Stock 2023                                   £15,000,000

Equities Index Unsecured Loan Stock 2013                        3,208,197





Gross Assets/Gearing

Gross Assets                                             £417.9 million

Debt                                                      £33.6 million

Actual Gearing (Debt less cash divided by

net asset value)











Fund Codes

Bloomberg                               Reuters Ticker/ISIN

BTEM                                    GB0001335081





Geographic Breakdown (% of total assets)



Continental Europe                    30.6%

Japan                                 12.3%

Canada/US                              5.0%

Asia Pacific                          10.0%

UK                                    23.5%

Liquidity                             10.4%

EM EA                                  8.2%





Further Information



Investment Manager - John Pennink, AVI Limited

[phone]     [e-mail]



Information may be found on the following websites:

http://www.british-empire.co.uk/ or http://www.assetvalueinvestors.com/



All figures as at 31 January 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.




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