Morningstar Rating™

as at 30 September 2013

Financial Results Announced

View the 2014 Annual Report

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Manager's Comment for December 2014

In NAV terms we ended 2014 2.6% ahead of our benchmark.

The share price of Marwyn Value Investors (MVI) bucked the market, climbing 6% over the month on the back of an 8% rise in its largest holding, media company Entertainment One.  Shortly before the start of the month, MVI had announced the sale of its second largest holding, Breedon Aggregates.  A return of capital equivalent to 4% of month-end share price will be affected in January.

German residential owner, Westgrund, was up 9% over the month as the company closed the refinancing of their recently acquired Berlinovo portfolio.  A 7 year loan with a cost of 2.14% has replaced bridge financing which cost 2.75%.  Investors’ belief that the sector is due for further consolidation following the merger of Deutsche Wohnen and GAGFAH was a further boon for Westgrund as investors identified it as a potential takeover target. 

Aker, which has been a very poor performer in recent months on the back of the falling oil price, staged a small comeback during December despite the continued weakness in oil.  The discount on this holding company has widened and the prospective dividend yield is relatively high.  We anticipate a strong recovery in the shares once oil stabilises.

As at month end, net liquidity was 5.9% and the weighted average discount on the portfolio was 25.2%. 

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 28/01/15
Price Ord 523.00
NAV 585.14
Prem/-Disc -10.62
Dividend Yield 2.01

Calendar

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
£7,200
2010
18.5%
return
£8,534
2011
3.4%
return
£7,441
2012
21.7%
return
£8,765
2013
27.9%
return
£9,209
2014
38.5%
return
£9,974

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.