Monthly Update

British Empire Sec & Gen Tst PLC
19 January 2006



BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC



Performance Commentary



This investment management report relates to performance figures as at 31
December 2005.

Over the month NAV was up 8.2%1.  This compares to an increase in the benchmark
of 4.5%2, and an increase of 3.9%1  and 3.1%1 for the FTSE All Share and MSCI
World (£) indices respectively.

Financial year to date, net asset value rose 11.8%1 compared to a rise of 6.9%2
for the Datastream index, 6.3%1 for the MSCI World (£) and 4.3%1 for the FTSE
All Share.

Over three years NAV is up 146.7%1 while the FTSE All Share is up 66.4%1.



Manager's Comment



British Empire's NAV was very strong in December, led by a big rally in Japanese
equities.  We have been positive on Japanese stocks for sometime and signs that
deflation has ended is providing a boost to property and asset-backed companies.

A more positive tone to markets generally is down to signs from the US Federal
Reserve that we are nearing the peak in US interest rates.  Low inflation should
allow monetary policy makers to keep rates accommodative, providing buoyant
liquidity conditions from markets.

Competitive bidding broke out for one of our largest holdings, PD Ports.  We
have agreed to sell our shares to bidder Babcock & Brown for what we consider to
be a very satisfactory price.





Statistics





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

Price (£)1           456.5      7.5       51.7       192.2      158.5

Net Asset Value1     427.6      7.4       44.8       141.2      103.9
Net Asset Value Total Return1   8.2       46.1       146.7      112.6
Benchmark2 (£)                  4.5       27.6       73.7       15.4

Annual Returns (%)    2005      2004      2003       2002       2001

Price1                44.8      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                 %



Mitsubishi Estates                     3.03

Jardine Strategic                      2.90
                                       
Prospect Japan                         2.90
                                 
PD Ports                               2.72

Investor AB                            2.48

Deutsche Wohnen                        2.30

JPM Fleming Japan Smaller Co's         2.13

Fording Canadian Coal                  1.86

Boskalis Westminster                   1.85

Lundbergforetagen                      1.78



Capital Structure as at 31 December 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 December 2005



Gross Assets                                    £717 mil.

Debt                                          £ 31.6 mil.

Actual Gearing (Debt less cash divided 
by net asset value)                                  4.4%





Fund Codes


                                   
Bloomberg                    Reuters Ticker / ISIN
BTEM                         GB0001335081





Geographical Breakdown



Continental Europe                     23.5%

Japan                                  19.4%

Canada / US                             6.6%

Asia Pacific                           12.9%

UK                                     25.2%

Liquidity                               6.3%

EMEA                                    6.1%



All figures as at 31 December 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.


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