Monthly Report

Deutsche Latin American Cos Tst PLC
24 February 2004





Deutsche Latin American Companies Trust PLC



                      REPORT FOR THE MONTH OF JANUARY 2004



SUMMARY

Latin American equities showed mixed performance for January with Argentina,
Mexico, Colombia and Venezuela posting gains while Brazil and Chile were off for
the month. The Trust's NAV was down 1.3% for the month, slightly worse than the
index return of -1.12% due to the leverage. Stock selection was actually
positive in all three big markets, Brazil, Mexico and Chile. This did not
compensate for our overweight position in Brazil, however, which market was down
by more than 6% in sterling, largely accounting for the underperformance.

The month began on a positive note, but quickly turned weaker as the regional
equity markets digested the meaning of the latest US and Brazilian monetary
policy meetings. All regional currencies finished down for the month, with the
Brazilian real off 3.5% against the pound, the Mexican peso down by 60 basis
points and the Chilean peso off .66%. On a positive note, most commodity prices
surged to new highs. In January, copper prices rallied to levels not seen since
1997 (good for Chile and Brazil) oil prices to levels not seen since last March
(good for Mexico) and gold to new highs as well. The interpretation that the US
Fed will begin to raise rates later this year, coupled with the decision not to
lower rates in Brazil because of inflationary concerns, triggered the sell-off.
Looking ahead, we do not believe that the regional equity market rally is over,
more that this is a period of profit taking and reassessing upside.

A further sign of regional stability was the sizeable issuance of debt by Latin
sovereigns and corporates, which took advantage of unprecedented low levels of
sovereign spreads. Approximately $US 6 billion in new Latin debt was issued in
January.

From a macroeconomic and political standpoint, attention in Argentina was mostly
focused on the approval of the IMF following the first performance review under
the three-year standby program. As mentioned, the only noteworthy event in
Brazil was the unexpected upholding of the Selic rate at 16.5%, ending seven
consecutive months of monetary policy easing. The surprising 50 basis point
interest rate cut and the upgrading of its sovereign credit rating from A-to A
were the dominant themes in Chile. In Mexico, the lack of fiscal reform drew the
most attention.

In the Andean countries, the main focal points were the release of the official
referendum results in Colombia and the initiation of the signature verification
process for a recall referendum on Chavez in Venezuela. We do not have
investments in either of these countries.

Brazil's industrial production figures for November indicated a lower than
expected .8%, fuelling the notion that growth has not yet kicked in. Industrial
production registered a mere .3% increase year on year. On a positive note, the
country posted a $US 2.8 billion trade surplus in December and an impressive $US
24 billion figure for 2003. Brazil also posted its first annual current account
surplus in 11 years in 2003, recording a surplus of .8% of GDP or $US 4 billion.
Furthermore, the Brazilian Central Bank announced that it will start purchasing
foreign exchange in the local spot market to rebuild net reserves.







As a testimony to Brazil's improved creditworthiness, the Brazilian Treasury
successfully issued $US 1.5 billion in 30 year bonds in the international
markets at a spread of 376 bps over US Treasuries. Finally, President Lula
implemented the first cabinet changes of his administration, replacing nine
ministers including those in communications and the head of he economic and
social development council. The reshuffle, which was supposed to accommodate the
PMDB into the governing coalition was broader than expected but did not include
any of the key members of the economic cabinet.

In Mexico, the government reported year end inflation figures of 3.98% for 2003,
the lowest level since 1968. November economic activity was released indicating
a better than expected result, raising optimism on a resynchronization with the
U.S. industrial cycle. The December unemployment rate was better than expected,
and as expected the Central Bank kept monetary policy on hold at its two January
policy meetings. Like Brazil, the Mexican Treasury successfully issued a $US 1
billion five year global bond at a floating rate above Libor. The country also
placed a well received 20 year Sterling 500 Million bond in the UK market. The
bond was placed at 190 bps above equivalent UK Treasuries.

Gearing has not added value as the market declined. We have increased gearing
into this reduction and remain positive on the markets over a six month view.
NET ASSET VALUE
                                                                                    Fully diluted
                                                              31/01/04        31/12/03         31/01/04         31/12/03

                                                                 81.3p           82.4p            85.3p            86.1p


MID-MARKET SHARE PRICE                                                                  31/01/04                31/12/03
Ordinary Shares                                                                           71.00p                  70.75p
Warrants                                                                                  18.25p                  14.75p

Discount/(Premium) %                                                                        12.7                    14.1

NAV based on total assets less current liabilities of £38.9 million (£39.4 million).
                                                                                                 Market exposure
                                                                                        31/01/04                31/12/03
                                                                                              %)                       %
EQUITIES

Brazil                                                                                      52.9                    54.6

Chile                                                                                        9.8                     7.1

Mexico                                                                                      35.2                    35.1

Peru                                                                                         1.6                     2.5

TOTAL PORTFOLIO                                                                             99.5                    99.3

Net Current Assets                                                                           0.5                     0.7
                                                                                        --------                --------
TOTAL                                                                                      100.0                   100.0
                                                                                        --------                --------
Based on total assets of £45.5 million (£43.6 million).

GEARING
Gearing at                                                                              31/01/04                31/12/03
                                                                                           17.1%                   10.6%
                                                                                           =====                   =====



LARGEST HOLDINGS (market value £40.1 million equal to 88.5% of total portfolio)

                                                       Country                        £000's              % of portfolio
Petrobras                                              Brazil                          5,613                        12.4

Vale do Rio Doce                                       Brazil                          4,131                         9.1

America Movil                                          Mexico                          3,545                         7.8

Telmex                                                 Mexico                          2,609                         5.8

Wal-Mart de Mexico                                     Mexico                          2,368                         5.2

Banco Itau                                             Brazil                          2,143                         4.7

Ambev                                                  Brazil                          1,824                         4.0

G.F BBVA-Bancomer                                      Mexico                          1,768                         3.9

Grupo Televisa                                         Mexico                          1,709                         3.8

Cemex                                                  Mexico                          1,449                         3.2

Tele Norte Leste                                       Brazil                          1,282                         2.8

Cemig Cia Energy                                       Brazil                          1,223                         2.7

Bco Santander                                          Chile                           1,019                         2.3

Brasil Telecom                                         Brazil                            962                         2.1

Enersis                                                Chile                             940                         2.1

Telecom de Chile                                       Chile                             914                         2.0

Sider Nacional                                         Brazil                            843                         1.9

Unibanco-Uniao                                         Brazil                            832                         1.8

Femsa                                                  Mexico                            818                         1.8

Antofagasta                                            Chile                             719                         1.6

Minas Buenaventura                                     Peru                              707                         1.6

Embraer Emp                                            Brazil                            688                         1.5

Gerdau                                                 Brazil                            665                         1.5

Telesp Celular                                         Brazil                            662                         1.5

Votorantim Celulos                                     Brazil                            621                         1.4




For further information, contact Mark Pope at Deutsche Investment Trust Managers
Limited on 020-7545-0520.

For additional copies, changes of address or details of our Private Investors'
Plan, low cost ISA and Dividend Reinvestment Plan (a plan through which
shareholders, who hold their shares on the Company's main register, can use
their dividends to purchase further shares) contact Mark Pope on 020-7545-0520,
e-mail address: [e-mail]. Further details of Deutsche Latin American
Companies Trust including the latest annual, interim and monthly reports can be
found on the Deutsche Investment Trust Managers website located at
www.deutsche-its.co.uk.

Issued and approved by Deutsche Investment Trust Managers Limited, One Appold
Street, London EC2A 2UU, authorised and regulated by the Financial Services
Authority and manager of Deutsche Latin American Companies Trust PLC. Investors
should note that the price of shares and the income from them can go down as
well as up and are not guaranteed and investors may not get back the amount they
invested. Fluctuations in exchange rates may also affect the value of your
investment. Deutsche Latin American Companies Trust PLC may invest in shares
traded in emerging markets which may at times be illiquid and/or volatile. The
use of gearing is likely to lead to volatility in the Net Asset Value (NAV),
meaning that a relatively small movement either down or up in the value of the
Trust's total assets will result in a magnified movement in the same direction
of that NAV. In extreme circumstances, investors may get nothing back at all if
the fall in value is sufficiently large.




                      This information is provided by RNS
            The company news service from the London Stock Exchange