Morningstar Rating™

as at 30 September 2013

Financial Results Announced

View the 2014 Annual Report

Read previous comments...

Manager's Comment for January 2015

The ECB formally adopted its version of QE during the month.  This drove the Euro even lower and boosted stock markets across Europe.  For the first time in a long while, the MSCI World ex US Index outperformed the broader MSCI World Index, reflecting the relative underperformance of US markets against the rest of the world.  This is a phenomenon which ought to benefit us, as we have no direct exposure to the US.  We continue to find good value opportunities on wide discounts in Europe and the weaker currency, as well as ECB monetary policy, could provide a further boost to these markets.  This would likely lead to a narrowing of discounts within our universe and would be beneficial to our strategy.

Two of our closed-end fund holdings were strong contributors to performance over the month, with NB Private Equity Partners (NBPE) and Harbourvest Global Private Equity (HVPE) recording solid gains.  Both discounts contracted materially, and the positions were also buoyed by the strong US dollar. 

Euro weakness was not enough to hold back our holding in TUI, whose share price climbed +8.8% in sterling terms over the month (+13.1% in Euros) as the market digested the transformative nature of the holding company’s merger with its TUI Travel subsidiary.

Retail Investors advised by IFAs

The Company currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers (“IFAs”) in the UK to ordinary retail investors in accordance with the Financial Conduct Authority (“FCA”) rules in relation to non-mainstream investment products and intends to continue to do so. The shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are shares in an authorised investment trust.

British Empire Securities and General Trust plc

British Empire Securities and General Trust p.l.c. (British Empire) is a closed-end investment trust with shares listed on the London Stock Exchange in the FTSE 250 Index. The investment objective is to achieve capital growth through a focused portfolio of investments, particularly in companies whose share prices stand at a discount to estimated underlying net asset value. British Empire shares can be purchased and held in a Stocks & Shares ISA or a Share Saving scheme through the investment managers, Asset Value Investors.

Asset Value Investors is an employee owned management company founded in 1985 to manage the assets of British Empire, which was a £6 million trust at that time. Today, British Empire has assets of over £856* million and is managed by John Pennink and Joe Bauernfreund.

British Empire Securities Share Price Updated 05/03/15
Price Ord 534.50
NAV 598.76
Prem/-Disc -10.73
Dividend Yield 1.96


Year End 30 Sept
Accounts Published 30 Nov
General Meeting Dec
Dividend Paid Jan, June
Launch Date July 1889

Price Performance December 2003 to December 2013 †

How a typical investment of £7,200 performed over the last five years ‡

Initial Investment

British Empire Securities and General Trust has had an average annual NAV total return of 12.2%* since 1985.

* Figures at 31 December 2014

† ‡ Gross annual returns to 31 December. Past performance should not be seen as an indication of future performance. The price of investments and the income may fall as well as rise and investors may not get back the full amount invested. British Empire uses gearing techniques (leverage) which will exaggerate market movements both down and up which could mean sudden and large falls in market value. Please refer to the Key Features Document for further details of the risks affecting your investment. Performance figures are cumulative and based on Price total return and do not include Plan charges. For more information, please call 0845 850 0181.

Tax treatment depends on the individual circumstances and may be subject to change in the future.