Monthly update

British Empire Sec & Gen Tst PLC
12 August 2005


BRITISH EMPIRE SECURITIES AND GENERAL TRUST PLC


Performance Commentary


This investment management report relates to performance figures as at 31 July
2005.

Over the month NAV was up 6.9%1.  This compares to an increase in the benchmark
of 4.6%2, and an increase of 5.4%1 and 3.4%1 for the MSCI World (£) and FTSE All
Share indices respectively.

Financial year to date, net asset value rose 35.2%1 compared to a rise of 21.9%2
for the Datastream index, 17.9%1 for the MSCI World (£) and 19.3%1 for the FTSE
All Share.

Over three years NAV is up 94.7%1 while the FTSE All Share is up 42.7%1.


Manager's Comment

Positive trends in the equity markets remained in place in July.  Low interest
rates have led to a search by investors for extra returns in alternative
strategies.  Large and sometimes, highly geared, private equity and hedge funds
have placed a bid under many asset-backed listed companies.

This has been good for our performance as we have been able to sell some
holdings on discounts well below our entry level.


Statistics

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

Price (£)1                         380.0      9.5           59.0         125.8      146.6

Net Asset Value1                   361.8      6.9           43.9         94.7        83.1

Net Asset Value Total Return1                 6.9           44.9         99.3        90.4

Benchmark2 (£)                                4.6           26.9         44.2        -1.9


Annual Returns (%)                  2004      2003        2002        2001        2000

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                          %

Jardine Strategic                            3.53
Prospect Japan                               2.50
Hansa Trust                                  2.46
Law Debenture Corp                           2.44
CNP                                          2.36
European Asset Value Fund                    2.25
PD Ports                                     2.18
Paris Orleans                                2.13
Deutsche Wohnen                              2.02
Investor                                     2.00



Capital Structure as at 30 June 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                           2,981,267


Gross Assets / Gearing as at 30 June

Gross Assets                                                       £529.0mil.
Debt                                                               £ 30.9mil.
Actual Gearing (Debt less cash dividend by net asset value)            -10.0%


Fund Codes

Bloomberg                              Reuters Ticker / ISIN
BTEM                                   GB0001335081


Geographical Breakdown

Continental Europe                            24.2%
Japan                                         12.8%
Canada / US                                    5.9%
Asia Pacific                                  12.4%
UK                                            17.4%
Liquidity                                     16.9%
EMEA                                          10.4%

All figures as at 31 July 2005.  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