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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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The price of the Shares will be determined by supply and demand in the market as well as NAV per Share. The market price of the Shares is therefore likely to fluctuate and may represent either a premium or discount to NAV per Share.

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July

The largest riser over the month was London-listed closed-end fund Marwyn Value Investors (MVI), up +19% on the back of a 10% rise in the share price of its largest holding Entertainment One (77% of MVI’s investment portfolio). Entertainment One is an independent film & TV distributor and producer, owning a valuable library of film and TV rights. A strong set of results accompanied by global M&A activity highlighting the value of content were responsible for the rise. MVI’s performance over the month was particularly gratifying as we had added to our holding before much of the share price rise occurred. On a discount of 32% and with Entertainment One attractively valued at 14x next year’s earnings, we see scope for substantial further upside in MVI’s shares. AVI funds own approximately 13% of the company.

The major faller over the month was recent acquisition, TUI AG, whose shares fell by 14%. The shares were dragged down by a 9% fall in London-listed subsidiary, TUI Travel (60% of TUI’s NAV). TUI AG’s shares are exceptionally cheap with an implied EV/EBITDA multiple for its hotels and cruises business of just 3.5x, and we took advantage of the share price weakness to add to our position. Were its merger with TUI Travel to fail to be consummated, the company has other levers to pull in order to spark a re-rating, most notably the disposal of its stake in the Hapag-Lloyd container shipping business scheduled to IPO next year.

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.