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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October

Markets recovered their poise in October, with the MSCI AC World ex-US benchmark up 5.4% on a total return basis and our NAV a little behind at a 5% return. Sterling strength again held back our returns.

Jardine Matheson was our largest contributor on the back of a 10% increase in NAV and discount narrowing for a 16% share price return. The company’s indirect holding in Astra International, which accounts for 20% of its NAV, climbed 13% in local currency as sentiment towards emerging markets improved.

Swedish holding company Investor AB was not far behind in terms of contribution, with strong performances from its stakes in Atlas Copco, ABB, and SEB resulting in solid NAV growth and discount contraction of c500bps. The company ended the month trading on a 20% discount to our estimated NAV. Given the long term value creation by the company, there is justification for the discount to be narrower than it is today. The resulting return over the month of 8% in Sterling was held back by a 3.7% decline in the Swedish Krona as disappointing Swedish unemployment figures led to speculation that the Riksbank may move rates even further into negative territory.

Other helpful contributors over the month included Kinnevik, Hitachi, and JPMorgan Private Equity.

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.