Monthly update

British Empire Sec & Gen Tst PLC
15 March 2006


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary


This investment management report relates to performance figures as at 28
February 2006.

Over the month NAV was up 0.9%1.  This compares to an increase in the benchmark
of 1.3%2, and an increase of 1.2%1  and 1.4%1 for the FTSE All Share and MSCI
World (£) indices respectively.

Financial year to date, net asset value rose 17.5%1 compared to a rise of 12.2%2
for the Datastream index, 8.8%1 for the MSCI World (£) and 8.6%1 for the FTSE
All Share.

Over three years NAV is up 164.1%1 while the FTSE All Share is up 85.6%1.


Manager's Comment

Japan suffered a correction during the month, with the Topix down 1.9% and the
TSE 2nd Section down 5.2%.  Investors took fright at signs that the Bank of
Japan (BOJ) is getting ready to exit its policy of ultra-loose monetary policy.
The BOJ has made the mistake of lightening too early before so investors have
some reason to be nervous.  We feel that aggressive policy tightening from the
BOJ is unlikely and that the signs of a stronger economy and a more normal
interest rate environment are positives for stocks in Japan.  Strong profits,
growth, and a recovering property market should continue to support the Japanese
market.





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

Price (£)1               468.0      -1.3          45.2         205.8       152.4

Net Asset Value1         447.4       0.9          42.6         156.9       107.9

Net Asset Value Total Return1        0.9          44.6         164.1       117.9

Benchmark2 (£)                       1.3          29.2          90.1        24.2


Annual Returns (%)    2005      2004       2003          2002       2001

Price1                51.7      36.0       41.6         -12.2        0.8

MSCI World1           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                         %

Jardine Strategic                          2.91

Deutsche Wohnen                            2.66

Investor AB                                2.65

Fording Canadian Coal                      2.04

Vivendi                                    1.97

Prospect Japan                             1.94

Alarko                                     1.92

Lundbergforetagen                          1.89

Forth Ports                                1.87

European Asset Value Fund                  1.84



Capital Structure as at 31 December 2005


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                            2,906,267



Gross Assets/Gearing as at 31 December 2005

Gross Assets                                                        £717 mil.

Debt                                                                £ 31.6 mil.

Actual Gearing (Debt less cash divided by net asset value)          4.4%


Fund Codes

Bloomberg                                                  Reuters Ticker/ ISIN

BTEM                                                       GB0001335081


Geographical Breakdown

Continental Europe                                         26.0%

Japan                                                      14.3%

Canada / US                                                 6.2%

Asia Pacific                                               15.8%

UK                                                         22.6%

Liquidity                                                  11.3%

EMEA                                                        3.8%



All figures as at 28 February 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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