Monthly Update

British Empire Sec & Gen Tst PLC
11 July 2006

BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC



Performance Commentary

This investment management report relates to performance figures as at 30 June
2006.

Over the month NAV was down 0.3%(1).  This compares to an increase in the
benchmark of 0.6%(2), and an increase of 2.0%(1)  and 1.2%(1) for the FTSE All 
Share and the MSCI World (£) indices respectively.

Financial year to date, net asset value rose 10.7%(1) compared to a rise of 
9.4%(2) for the Datastream index, 5.0%(1) for the MSCI World (£) and 10.6%(1) 
for the FTSE All Share.

Over three years NAV is up 122.5%(1) while the FTSE All Share is up 66.1%(1).



Manager's Comment

Equity markets stabilised somewhat after the sharp falls of May.  Stock markets
may find it difficult to surpass their recent highs in the face of rising
interest rates and an unwinding of positions by some geared players.  Thus, we
remain cautious and maintain a reasonable amount of liquidity to invest should
better buying opportunities emerge.



Statistics





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

Price (£)(1)                       441.0      -2.0      28.2      149.4    143.4                        
                                                        
Net Asset Value(1)                 420.4      -0.3      24.8      117.6    102.3

Net Asset Value Total Return(1)               -0.3      26.0      122.5    111.1

Benchmark(2) (£)                               0.6      20.7       66.0     26.2



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                     4.04

Alliance Trust                  3.11

Deutsche Wohnen                 2.85

Jardine Strategic               2.73

Sofina                          2.27

Hutchison Whampoa               2.23

Tokyu Corporation               2.20

Kinross Gold                    2.14

Lundbergforetagen               2.03

Paris Orleans                   2.03



Capital Structure as at 30 June 2006



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 as at 30 June 2006



Gross Assets                                                     £713 mil.

Debt                                                           £ 30.1 mil.

Actual Gearing (Debt less cash divided by net asset value)          -19.5%





Fund Codes



Bloomberg                          Reuters Ticker / ISIN

BTEM                               GB0001335081





Geographical Breakdown



Continental Europe             22.1%

Japan                          15.0%

Canada / US                     5.6%

Asia Pacific                   13.2%

UK                             20.5%

Liquidity                      19.0%

EMEA                            4.6%



All figures as at 30 June 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.


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            The company news service from the London Stock Exchange