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The website is directed only at Professional Clients in the UK. The website is issued by Asset Value Investors Limited (“AVI”), in respect of British Empire Trust plc (“British Empire”). AVI is authorised and regulated by the UK Financial Conduct Authority (“FCA”). British Empire is a public company listed and traded on the London Stock Exchange.

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April

The portfolio has continued to benefit from increasing levels of corporate activity, with a number of our European holding companies having exposure to the large M&A deals currently in the pipeline. As business confidence in Europe continues to grow and with credit becoming more readily available, the conditions are ripe for this trend to continue. With our portfolio, trading on a weighted average discount of almost 28%, there is every possibility of our portfolio continuing to be a beneficiary of this.

Lafarge makes up c20% of GBL’s NAV and the positive share price reaction to its tie up with Holcim helped push GBL’s share price up. Investor AB owns a 4% stake in Astra Zeneca that makes up just under 10% of its NAV and the news of Pfizer’s interest in taking over the company boosted Investor AB’s NAV and share price accordingly. Investor AB saw its discount narrow from 24% to 20% over the month and its share price increased by 7.6%.

At the smaller end of the market cap spectrum, LMS Capital announced the sale of its largest holding, Updata Infrastructure, to Capita at a price representing a 5.3x return on cash invested and an IRR of 52% since acquisition. The holding, 13% of NAV at year-end, was sold at a 36% uplift to last reported carrying value and had already been written up by almost 50% over 2013. The exit provides additional confirmation of the conservative marks used to value its mature portfolio, and we anticipate further exits at uplifts to NAV. A £40m tender at NAV has been announced, after which almost 60% of our original cost will have been returned to us with our holding showing a 59% gain.

The turbulent political environment in Turkey has weighed on the shares of Dogan Holding, a Turkish media and energy holding company. Despite owning a variety of attractive assets across the media and energy sectors, , we estimate the shares trade on a discount to SOTP of almost 60%, with 90% of Dogan’s market capitalisation covered by cash held in USD at the holding company level. While there is a medium term catalyst in place with the resumption of dividends from 2016 once an accumulated loss is paid off, we were pleased to see more immediate action taken to tackle the discount in April with the company announcing a buy-out of minorities in its 80%-owned listed subsidiary, Dogan Yayin Holding, whose own shares trade at an estimated 60% discount to SOTP. The elimination of the double-discount was well received by the market, with Dogan’s shares rising 7.5% over the month.

We made one new investment during the month. Westfield Group is an Australian listed investor in retail property around the world. It trades on a discount to its NAV of 26% and we anticipate this narrowing in coming months as the company splits into two separate entities. Part of this discount is due to investors perceiving Westfield Group as a pure Australian company, which is considered a low growth market. In reality its Australian operations represent less than one-third of its gross assets. In an attempt to combat this perception and to boost the share price, Westfield has outlined plans to separate its mature Australian and New Zealand assets and to combine them with assets held by the Westfield Retail Trust, an Australian listed retail REIT, to form Scentre. The remaining assets will be re-listed, most likely in NY, as Westfield Corp, which will have the bulk of its assets in the US and Europe. We expect the valuation for this company to appreciate as its rating moves into line with other US REITs.

British Empire Securities and General Trust p.l.c is referred to as ‘British Empire’ throughout the website. British Empire’s investment managers, Asset Value Investors are referred to as ‘AVI’

British Empire 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 Trust plc. 2014 Registered in England No: 00028203. An investment company under Section 833 of the Companies Act 2006. Registered Office: Beaufort House, 51 New North Road, Exeter, EX4 4EP. Managed by Asset Value Investors Ltd. which is authorised and regulated by the Financial Conduct Authority. 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 03458 500181. Tax treatment depends on the individual circumstances and may be subject to change in the future. Asset Value Investors Ltd do not offer Innovative Finance ISAs.