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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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November

This was a good month for us as markets continued to recover from their recent lows in mid-October. Importantly some of the key contributions to performance came from corporate events. The first was Forterra Trust, which although not a particularly large investment, nevertheless was able to inflict a fair amount of pain as its share price fell by 36% during the 2014 financial year. Since the end of September, it has jumped by 57% as its largest shareholder, Nan Fung, launched two attempts to take the company over. The first attempt was launched in October and was set at a price of $1.85. This received an unenthusiastic response and has since been followed by a second offer at $2.25. This won the support of the second largest shareholder and allowed Nan Fung to increase its ownership above the 50% level. Subsequent purchases in the market have taken their control to 90%, which includes the c. 4% stake held by AVI funds.

There were strong performances from Investor (up 6.6%), Tui AG (up 12.1%) and WM Morrison (up 15.3%).

The main detractor from performance was Aker, whose shares fell a further 7.3% during November, further compounding the sharp falls suffered by the company since the oil price started to fall in June. With a portfolio of assets dominated by oil related businesses it is unlikely that Aker’s share price will move in a different direction to that of the oil price in the near term. However, with a prospective dividend yield of over 9%, a discount of over 40% and financially sound assets there is a strong case to be made that Aker’s shares will at some point bounce very sharply from these very depressed levels.

We made two new investments over the month, and added to some of the recent investments we made in Europe.

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.