Monthly Update-Replacement

British Empire Sec & Gen Tst PLC
19 June 2006


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


This announcement replaces announcement 7671E released at 17.24 on 16 June 2006
as the wrong attachment had been inserted in announcement 7671E.


Performance Commentary

This investment management report relates to performance figures as at 31 May
2006.

Over the month NAV was down 7.8%1.  This compares to a decrease in the benchmark
of 6.6%2, and a decrease of 4.8%1  for the FTSE All Share and a decrease of
6.1%1 for the MSCI World (£) indices.

Financial year to date, net asset value rose11.0%1 compared to a rise of 8.5%2
for the Datastream index, 3.7%1 for the MSCI World (£) and 8.5%1 for the FTSE
All Share.

Over three years NAV is up 130.0%1 while the FTSE All Share is up 63.3%1.


Manager's Comment

Rising real interest rates appear to have brought to an end a three year period
of asset price reflation.  Higher rates and central bank warnings on market
levels have increased investor risk aversion.  Asset prices are falling and in
our universe of stocks, discounts are beginning to widen.

We had increased our liquidity levels in anticipation of more difficult markets
but many of our remaining holdings fell sharply over the month.  Markets are
selling off indiscriminately and we are looking forward to buying opportunities
in good quality companies.


Statistics

                                  Value   % 1 mo   % 1 yr     % 3 yr     % 5 yr
                                       
Price (£)1                       450.0      -9.2     40.6       161.7     144.8
Net Asset Value1                421.65      -8.0     32.3       125.0     100.3
Net Asset Value Total Return1               -7.8     33.5       130.0     108.9
Benchmark2 (£)                              -6.6     24.2        66.1      21.2


Annual Returns (%)                 2005     2004     2003        2002      2001

Price1                             51.7     36.0     41.6       -12.2       0.8
MSCI World1                        23.0      7.2     20.6       -27.4     -14.1


1 Source: Fundamental Data

2 Datastream Global Growth Investment Trust Index(TR) Source: Thomson Financial


Top 10 Equity Holdings                                        %

Investor AB                                                3.81
Jardine Strategic                                          2.89
Deutsche Wohnen                                            2.86
Hutchison Whampoa                                          2.19
Sofina                                                     2.16
Forth Ports                                                2.13
Kinross Gold                                               2.10
Paris Orleans                                              2.10
Alliance Trust                                             2.06
Lundbergforetagen                                          1.93


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     2,906,267


Gross Assets/Gearing as at 31 March 2005

Gross Assets                                                    £775 mil.
Debt                                                          £ 39.9 mil.
Actual Gearing (Debt less cash divided by net asset value)          11.6%

Fund Codes

Bloomberg                                     Reuters Ticker/ ISIN

BTEM                                          GB0001335081


Geographical Breakdown

Continental Europe                           21.7%
Japan                                        15.1%
Canada / US                                   6.5%
Asia Pacific                                 13.2%
UK                                           21.4%
Liquidity                                    18.8%
EMEA                                          3.3%



All figures as at 31 May 2006 unless otherwise stated.  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.


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