Monthly Update - July

British Empire Sec & Gen Tst PLC
10 August 2004


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary


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


Over the month NAV was up 4.5%1. This compares to an increase in the benchmark
of 2.6%2 and an increase of 2.9%1 and 1.5%1for the MSCI World (£) and FTSE All
Share indices respectively.

Financial year to date net asset value rose 18.0%1 compared to a rise of 10.8%2
for the Datastream index, 8.5%1 for the MSCI World (£) and 12.5%1 for the FTSE
All Share.

Over three years NAV is up 25.4%1 while the FTSE All Share is down 10.1%1.


Manager's Comment

Performance was good on the month, helped by a strong rebound in Japanese
stocks.  A recent trip to Japan has confirmed for us the attractions of Japanese
smaller companies.  There are many publicly traded companies in Japan trading
well below their net asset value.  This is understandable in a deflationary
environment in which return on assets is falling.  There are some signs however
that the Japanese economy may have finally turned the corner.  The recent Tankan
survey showed business confidence is rising and GDP growth has been strong.
Japanese corporate profitability is up sharply following the cost cutting of
recent years.  And finally, property prices in central Tokyo seem to have
bottomed out.  There are still many problems, of course, especially in the
banking sector but we feel that the assets are attractively priced in the market
and conditions for the equity markets are improving.


Statistics

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

Price (£)1                      245.5       2.8      36.2     33.0     94.8

Net Asset Value1                255.1       4.5      31.3     22.1     61.1

Net Asset Value Total Return1               4.5      32.2     25.4     67.6

Benchmark2 (£)                              2.6      16.0    -12.2     -7.8



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 Eequity Holdings                   %

Eurazeo                                6.17
Hansa Trust plc                        5.76
Henderson Electric & General           4.39
Prospect Japan Fund Ltd                3.99
Jardine Strategic Holdings Ltd         3.57
Law Debenture Corp                     3.48
Wendel Investissement                  2.81
Encana Corp                            2.61
CNP                                    2.28
European Asset Value Fund              2.14

Capital Structure as at 30 June 2004


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      3,101,197


Gross Assets / Gearing as at 30 June 2004

Gross Assets                                                       £440.5mil.
Debt                                                               £ 33.7mil.
Actual Gearing (Debt less cash dividend by net asset value)             -3.2%

Fund Codes

Bloomberg                    Reuters Ticker / ISIN
BTEM                         GB0001335081


Geographical Breakdown

Continental Europe                  30.0%
Japan                               14.6%
Canada / US                          3.5%
Asia Pacific                        11.8%
UK                                  23.5%
Liquidity                           10.8%
EMEA                                 5.8%


All figures as at 30 June 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