Monthly Update

British Empire Sec & Gen Tst PLC
17 January 2005

BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC



Performance Commentary



Investment management report with performance figures as at 31 December 2004.



Over the month NAV was up 3.7%1.  This compares to an increase in the benchmark
of 3.6%2 and an increase of 3.3%1 and 2.9%1 for the MSCI World (£) and FTSE All
Share indices respectively.



Year to date, net asset value rose 10.3%1 compared to a rise of 7.6%2 for the
Datastream index, 4.9%1 for the MSCI World (£) and 6.7%1 for the FTSE All Share.



Over three years NAV is up 51.7%1 while the FTSE All Share is up 5.4%1.





Manager's Comment



2004 finished on a strong note, with equity markets rising, we anticipate 2005
will be a more difficult year for the markets as we are starting from a higher
level of valuation and liquidity support may be withdrawn by the US Federal
Reserve.  Earning opportunities will slow in 2005 and any disappointment on this
front could drag the markets lower.



We begin the year with a slightly higher cash weighting than we have had in the
recent past in expectation of more difficult conditions.





Statistics





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

Price (£)1                   303.5          3.0      36.0       69.1      114.7

Net Asset Value1             295.8          3.2      25.9       48.2       65.1

Net Asset Value Total Return1               3.7      26.7       51.7       71.7

Benchmark2 (£)                              3.6      12.4        5.7      -13.2



Annual Returns (%)            2003         2002      2001       2000       1999

Price1                        36.0         41.6     -12.2        0.8       26.0

MSCI World1                    7.2         20.6     -27.4      -14.1       -5.8





1 Source: Fundamental Data

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

3 Benchmark index changed to Datastream Global Growth Investment Trust Index(TR)





Top 10 Equity Holdings                %



Hansa Trust                        6.12

Eurazeo                            5.24

Jardine Strategic                  4.78

Law Debenture Corporation          3.41

Wendel Investissement              3.32

Prospect Japan Fund                3.15

CNP                                3.02

European Asset Value Fund          2.14

Encana                             2.03

Hang Lung Group                    1.76





Capital Structure as at 30 September 2004



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                    3,013,267



Gross Assets / Gearing as at 30 June 2004



Gross Assets                                               £501.5mil.

Debt                                                       £ 30.7mil.

Actual Gearing (Debt less cash divided by net asset value)    -10.2 %





Fund Codes



Bloomberg                                  Reuters Ticker / ISIN

BTEM                                       GB0001335081





Geographical Breakdown



Continental Europe                                       25.8%

Japan                                                    11.4%

Canada / US                                               4.4%

Asia Pacific                                             15.5%

UK                                                       22.6%

Liquidity                                                15.7%

EMEA                                                      4.6%



All figures as at 31 December 2004.  All sources Asset Value Investor 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