Monthly Update

British Empire Sec & Gen Tst PLC
15 January 2008


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary

This investment management report relates to performance figures as at 31
December 2007.

Over the month NAV was up 1.1%1.  This compares to an increase in the benchmark
of 1.9%2, and an increase of 2.0%1 and 0.3%1 for the MSCI World (£) and FTSE All
Share indices respectively.

Financial* year to date, net asset value fell 2.8%1 compared to a rise of 1.0%2
for the Datastream index, no change1 for the MSCI World (£) and a fall of 0.3%1
for the FTSE All Share.

Over three years NAV is up 71.0%1 while the FTSE All Share is up 50.1%1.


Manager's Comment


Discounts are generally widening in our core universe of investment holding
companies, investment trusts, and property companies.  This is very much a
double-edged sword as it hinders our current investment performance but also
gives us the opportunity to invest our liquidity into shares at attractive
levels.  We are now starting to put money to work in companies on wide discounts
that should help set up good future performance.  We are buying certain
investment holding companies, for instance, such as Sofina and GBL on discounts
of over 30%.


Statistics


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

Price (£)1               435.0     -7.3          -2.8         47.9      184.9

Net Asset Value1         487.0      0.3           7.7         65.7      176.0

Net Asset Value Total 

Return1                             1.1           8.9         71.0      188.8

Benchmark2 (£)                      1.9          11.1         58.3      116.2



Annual Returns (%)    2007        2006        2005      2004        2003

Price1                -2.8         0.3        51.7      36.0        41.6

MSCI World1            7.7         5.8        23.0       7.2        20.6

1 Source: Fundamental Data

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


Top 10 Equity Holdings                                    %

Investor AB                                              3.85

Sofina                                                   3.56

Jardine Strategic                                        3.32

GBL                                                      3.00

Jardine Matheson                                         2.84

Electra Private Equity                                   2.65

Paris Orleans                                            2.51

Tupras Turkiye                                           2.45

Holmen                                                   2.39

Deutsche Wohnen                                          2.35



Capital Structure

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**              2,730,231

** Updated annually


Gross Assets/Gearing


Gross Assets                                           £815 mil.

Debt                                                 £ 29.3 mil.

Actual Gearing (Debt less cash divided by net 
asset value)                                              -15.1%


Fund Codes

Bloomberg                                         Reuters Ticker / ISIN

BTEM                                              GB0001335081


Geographical Breakdown

Continental Europe                                          27.3%

Japan                                                        9.5%

Canada / US                                                 13.5%

Asia Pacific                                                 9.7%

UK                                                          18.9%

Liquidity                                                   18.7%

EMEA                                                         2.4%


All figures as at 31 December 2007 unless otherwise stated.  All sources Asset
Value Investors Ltd unless otherwise stated.  British Empire Securities and
General Trust plc 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.

British Empire Securities and General Trust plc, Bennet House, 54 St James's
Street, London SW1A 1JT, United Kingdom.  Registered in England: 28203


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