Disclaimer

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

While BTEM’s NAV increased by +1.6% over the month, this return lagged broader markets due to a widening portfolio discount (out to 29.1% from 28.4%) and weakness in a few key holdings. The largest contributors were Jardine Strategic (+56bps), Wendel, Oakley Capital Investments, Investor AB, Cosan Ltd., Pershing Square Holdings, and Tetragon Financial (+21bps); the largest detractors were Tokyo Broadcasting System (-45bps), Riverstone Energy, Third Point Offshore Investors, and EXOR (-10bps).

Having added to Jardine Strategic (JS) in early June when its discount widened out to 39% (close to its 5y high), we were pleased to see a re-rating over July (albeit partially given back post-month-end) as its discount ended the month at 29%. During the month, both JS and a number of its underlying holdings reported half-year results.  The share price of Jardine Cycle & Carriage (23% of JS’ NAV) increased +6% with largest holding Astra reporting strong results at its Heavy Equipment and Mining division, and improvements at its underperforming Autos division.  A +5% increase in Jardine Strategic’s interim dividend was well-received, and highlights the stability of the group which has increased or maintained its dividend every year since 2000.

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.