Monthly Update

RNS Number : 2633D

British Empire Sec & Gen Tst PLC

11 September 2008

 



BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC

Performance Commentary

This investment management report relates to performance figures as at 31 August 2008.

Over the month NAV was up 3.5%1. This compares to an increase of 3.7%2 in the benchmark and 7.1%1 for the MSCI World (£) index.

Financial* year to date, net asset value fell 9.8%1 compared to a decrease of 8.2%2 for the Datastream index and 5.7%1 for the MSCI World (£).

Manager's Comment

British Empire's NAV moved higher in August helped, in part, by Sterling's weakness against other major currencies.  Weakness in the UK housing market and economic growth are leading to expectations of lower UK interest rates, putting pressure on the currency.

The continued deleveraging cycle is leading to forced selling of assets and stock markets are volatile as a result. Many stocks globally now appear to us to be good value. Despite the valuation attractions, we have remained somewhat cautious and have held on to net cash.

Statistics

	Value	% 1 mo	% 1 yr	% 3 yr	% 5 yr
Price (£)1	449.5	3.8	-1.4	21.6	131.4
Net Asset Value1	450.4	3.5	-6.8	24.7	108.4
Net Asset Value Total Return1		3.5	-5.7	28.9	118.3
Benchmark2 (£)		3.7	-4.4	26.3	69.7
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

Top 10 Equity Holdings    %

Sofina	5.16
Investor AB	4.60
Jardine Strategic	3.89
Jardine Matheson	3.45
GBL	3.31
Vivendi	3.13
Holmen	2.75
Paris Orléans	2.73
Electra Private Equity	2.66
Tupras Turkiye	2.52

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	£759 mil.
Debt	£ 27.4 mil.
Actual Gearing (Debt less cash divided by net asset value)	-10.6%

Fund Codes

Bloomberg	Reuters Ticker / ISIN
BTEM	GB0001335081

Geographical Breakdown

Continental Europe	37.3%
Japan	11.6%
Canada / US	3.3%
Asia Pacific	10.2%
UK	18.6%
Liquidity	14.3%
EMEA	4.7%

All figures as at 31 August 2008 unless otherwise stated. All sources Asset Value Investors Ltd unless otherwise stated. Asset Value Investors Limited ('AVI') is authorised and regulated by the Financial Services Authority of the United Kingdom (the 'FSA'). This document does not constitute an offer to buy or sell shares in the British Empire Securities and General Trust plc (the 'Trust'). Investors are reminded that past performance is not a guide to future performance and that their capital will be at risk and they may therefore lose some or all of the amounts that they choose to invest in the Trust. Investment in the Trust carries risks, which are more fully described in the prospectus. The contents of this message are not intended to constitute, and should not be construed as, investment advice. Potential investors in the Trust should seek their own independent financial advice. AVI neither provides investment advice to, nor receives and transmits orders from, investors in the Trust nor does it carry on any other activities with or for such investors that constitute 'MiFID or equivalent third country business' for the purposes of the FSA's rules.

British Empire Securities and General Trust plc, 54 St James's Street, London SW1A 1JT, United Kingdom. Registered in England & Wales No: 28203

 

END

 

 

MSCFKDKQQBKDKCD