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.

You agree that we may contact you about our products and services that we believe you might be interested in.

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.

Navigation

June

In a rather weak market we outperformed our benchmark due to the outperformance of our European and UK holdings, where we are substantially overweight. Notable outperformers during the month include Aker whose share price rose by 6.6%, JP Morgan Private Equity (+5.5%) and Better Capital (+7.5%). Our Canadian holdings also performed well with Dundee Corp rising 9.9% and Detour Gold up 8.1%.

Fears over the potential “Grexit” during the month of June, as well as extreme volatility in China spilled over into all markets. We used the volatility to add to companies we find very attractively priced. Most of the acquisitions were additional investments into our European names. The discount on Kinnevik has widened out to close to 25%, having been almost 10 percentage points narrower in recent months. In addition, the potential for NAV growth is extremely high as the core underlying investments such as Zalando, continue to perform well. We have added substantially to Kinnevik in recent weeks.

During the month the weighted average discount to NAV increased to 25.1% from 23.5% one month earlier.

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.