Monthly Update

British Empire Sec & Gen Tst PLC
19 September 2006



BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC



Performance Commentary

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

Over the month NAV was up 1.1%1.  This compares to an increase in the benchmark
of 0.2%(2), and 0.7%(1) and 0.8%(1) for the FTSE All Share and the MSCI World (£)
indices respectively.

Financial year to date, net asset value rose 12.2%(1) compared to a rise of
10.1%(2) for the Datastream index, 5.4%(1) for the MSCI World (£) and 12.9%(1)
for the FTSE All Share.

Over three years NAV is up 101.6%(1) while the FTSE All Share is up 60.5%(1).



Manager's Comment



Discounts in our investment universe remain at the lower end of their historic
range.  We have been cautious on the prospects for equity markets as a result
and have had 10-20% net liquidity throughout the year.  Against this, one could
argue that price/earnings ratios in many markets are low and markets good value.
  The problem with this line of reasoning is that earnings are cyclically high.
Slowing economies and rising cost pressures could see a margin squeeze which
could lower profits and raise PERs.  We think it is right, therefore, to create
a 'margin of safety' through our liquidity position that we cannot currently
find in equities.



Statistics





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

Price (£)(1)               451.5        3.8       19.1       126.8      155.3

Net Asset Value(1)         426.1        1.1       18.0        97.2      108.0

Net Asset Value Total 
 Return(1)                              1.1       19.1      101.6       117.0

Benchmark(2)(£)                         0.2       15.7       55.6        37.6



Annual Returns (%)        2005         2004       2003       2002       2001

Price(1)                  51.7         36.0       41.6      -12.2        0.8

MSCI World(1)             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               3.82

Alliance Trust            3.04

Jardine Strategic         2.61

Tokyu Corporation         2.40

Sofina                    2.28

Electra Private Equity    2.23

Hutchison Whampoa         2.12

Kinross Gold              2.09

Lundbergforetagen         2.09

Paris Orleans             2.02



Capital Structure



Ordinary Shares                            160,080,089

10 3/8% Debenture stock 2011                £8,514,940

8 1/8% Debenture stock 2023                £14,875,319

Equities index unsecured loan stock 2013     2,837,000



Gross Assets/Gearing


                                             
Gross Assets                               £723 mil.

Debt                                      £30.4 mil.

Actual Gearing (Debt less cash divided 
by net asset value)                           -15.2%


Fund Codes


Bloomberg                               Reuters Ticker/ISIN

BTEM                                    GB0001335081



Geographical Breakdown



Continental Europe                        21.5%

Japan                                     14.8%

Canada / US                                6.7%

Asia Pacific                              13.2%

UK                                        22.9%

Liquidity                                 18.7%

EMEA                                       2.2%



All figures as at 31 August 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.


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

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