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.

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November

BTEM’s NAV was essentially unchanged over the month with local currency gains – driven mostly by discount narrowing – being offset by adverse FX moves (a strengthening Pound). We now have over 20% of NAV in Japanese holdings and these were a key source of performance over the month. Tokyo Broadcasting System, Digital Garage, Toshiba Plant, and the Japan Special Situations Basket all performed strongly.   Outside of Japan, GP Investments, Cosan Limited (which was until now an undisclosed position), JPEL Private Equity, and Third Point Offshore Investors contributed to returns; Exor, Investor AB, Adler, Symphony, and Swire Pacific were detractors.

We wrote last month on Tokyo Broadcasting System (TBS) and our public campaign to encourage the company to reduce its stock portfolio. TBS’ share price rose +20% over November on the back of publicity surrounding our actions and strong operating profit growth (+38% for H1-17) in the underlying operating business.  Despite the share price increase, non-core assets (listed equities, investment properties, and net cash) more than cover the market cap with the high quality operating business being implicitly assigned a negative value by the market.  We continue to engage with the board and management.

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.