Monthly Report - August 1999

MORGAN GRENFELL LATIN AMERICAN COMPANIES TRUST PLC
10 September 1999

                                       
                  REPORT FOR THE MONTH OF AUGUST 1999
                                          

SUMMARY

Although the correction continued during August some recovery during the last
ten days of the month left the regional index down just 2.3% and still up 20%
since the start of the year.

The primary reason for the correction has been concern about the direction of
US interest rates although, in Brazil, recent weakness is also a function of
local politics and the pace of reform.  Political considerations are also
affecting Argentina and Mexico with Presidential elections in the former in
October this year and in the latter mid-next year.  Although there will
undoubtedly be a lot of noise, we are not expecting the outcome of either
election to make much difference to the underlying economic outlook; positive
in Mexico, less so in Argentina.

The regional rally was led by Argentina which rose 5.1% in the month (having
fallen much more than Brazil and Mexico in July) Brazil fell 3.8% and Mexico
fell 2.3% during the month.  Despite the fact that we are overweight in Mexico
and Brazil and underweight in Argentina, our NAV fell less than the regional
index with a decline of 2.0%.

During the month we repurchased 350,000 shares at 54.5p, leaving 61,936,050
shares in issue.

BRAZIL

The Brazilian budget for 2000, released during the month, contained no big
surprises however the growth assumption for next year may prove a little
optimistic (at 4%).  During the month the local market staged a modest rally,
but the deterioration of the currency (which fell about 10%) more than offset
this.

We made no changes to our portfolio following last month's increases and
remain marginally overweight.

MEXICO

Data released during the month confirms that the economy is in good shape.
Industrial production for June rose 5.2% and retail sales have also begun to
re-accelerate with an increase of 2.8% in June.  Both figures were better than
expected as was the subdued level of inflation, which rose just 0.3% in the
first half of June and expectations are now that monthly rates may not exceed
1%.  There is clearly potential for interest rates to fall further.

Despite good domestic news the market was the weakest of the major markets
during August although it remains the best performing this year.  Concerns
about the impact of a potentially slowing US economy have been overdone in our
view and we remain convinced that our overweight will continue to benefit
performance.  We made no changes to the portfolio during the month.

ARGENTINA

As discussed last month we now have just two holdings in this market and are
underweight.  Although the market recovered some of last month's weakness
during August, outperforming Brazil and Mexico we remain convinced that the
economic outlook is less bright than in these two other countries and that in
particular, the currency link will result in increasing interest rates in
tandem with the US and that currency inflexibility makes manufacturing very
uncompetitive.  It is hard to see a catalyst for stronger growth.

Although our underweight hurt our relative performance the two stocks that we
own strongly outperformed, more than offsetting the cost of the underweight
during the month.

CHILE

We are becoming more constructive towards Chile and believe that, although the
economy remains in recession (the first in sixteen years), we may now be at an
inflexion point.

The causes of the recession (El Nino, Asian trade, copper weakness, very high
interest rates and the drought) are all now reversing with interest rates at
historically low levels and likely to fall further.  The local pension funds
(who dominate the market) now have a very low exposure to domestic equities.
Valuations, although not the lowest in the region, are very low compared to
history.  We are considering reducing our underweight and are actively looking
at a number of new investment ideas.

SMALLER MARKETS

These smaller markets remain sidelined for the time being.  All declined
during the month with Venezuela falling the most, down 8.5% (we have no
exposure) Colombia falling 6% (we have very little exposure) and Peru the best
of the bunch down 3% (we remain overweight and optimistic).




NET ASSET VALUE                                              
                                                    Fully diluted
                               31/08/99  31/07/99 31/08/99  31/07/99
                                 72.0p     73.4p    76.8p     78.0p

MID-MARKET SHARE PRICE               31/08/99   31/07/99
Ordinary Shares                       56.50p     58.50p
Warrants                              16.50p     17.25p


                                       Market exposure
                                     31/08/99     31/07/99
EQUITIES                                                 
                                                         
Argentina                               6.1           5.2
                                                         
Brazil                                 31.1          31.4
                                                         
Chile                                   9.6           9.9
                                                         
Colombia                                0.7           0.7
                                                         
Mexico                                 44.8          44.9
                                                         
Peru                                    4.3           5.5
                                                         
Other                                   1.5           1.5
                                                         
TOTAL PORTFOLIO                        98.1          99.1
                                                         
Net Current Assets                      1.9           0.9
                                     ------       -------
TOTAL                                 100.0         100.0
                                     ------       -------
                                          
Based on total assets less current liabilities of £44.6 million (£45.7
million).
                                                         
GEARING                                                  
Borrowings and Gearing at            31/08/99   31/07/99
                                      £000's     £000's
                                        NIL         NIL
                                       ====        ====
                                                         

LARGEST HOLDINGS (market value £34.5 million equal to 78.8% of total
portfolio)
                                                      
                                                      
                                                         % of
                            Country          £000's   portfolio
Telmex                       Mexico          5,504       12.6
Vale do Rio Doce             Brazil          1,980        4.5
Banco de Galicia             Argentina       1,802        4.1
Grupo Televisa               Mexico          1,662        3.8
Petrobras                    Brazil          1,651        3.8
Grupo Modelo                 Mexico          1,586        3.6
Tele Norte Leste             Brazil          1,493        3.4
Telesp                       Brazil          1,319        3.0
Soriana                      Mexico          1,309        3.0
Cemex                        Mexico          1,281        2.9
Telecom de Chile             Chile           1,259        2.9
Desc                         Mexico          1,240        2.8
Alfa                         Mexico          1,215        2.8
Unibanco                     Brazil          1,143        2.6
Femsa                        Mexico          1,100        2.5
Brahma                       Brazil            971        2.2
Cementos Lima                Peru              969        2.2
Gissa                        Mexico            958        2.2
Quinenco                     Chile             927        2.1
Perez Companc                Argentina         913        2.1
Cemig                        Brazil            904        2.1
ICA 5% Conv. 15/3/04         Mexico            854        2.0
Kimberly-Clark               Mexico            847        2.0
Electrobras                  Brazil            832        1.9
Gerdau                       Brazil            737        1.7
                                                                
Financial Calendar                                              
Half year                                         31 August 1999
                                                                

For   further  information,  contact Alan  Nesbit  at  Morgan  Grenfell  Trust
Managers Limited on 0171-545-6000.

For   additional  copies,  changes  of  address  or  details  of  our  Private
Investors'   Plan   contact  Mark  Pope  on  0171-545-0520,  e-mail   address:
[e-mail]

Issued  by Morgan Grenfell Latin American Companies Trust PLC and approved  by
Morgan Grenfell Trust Managers Limited, regulated by the Investment Management
Regulatory  Organisation  and  manager  of  Morgan  Grenfell  Latin   American
Companies Trust PLC.  Investors should be aware that past performance  is  not
necessarily  a guide to future returns, values can fall as well  as  rise  and
investors may not get back the amount they invested.  Fluctuations in exchange
rates  may  also  affect the value of your investment.  Investment  in  Morgan
Grenfell  Latin  American Companies Trust PLC presents those risks  associated
with emerging markets which may at times be illiquid and/or volatile.