Monthly Report - July 2001

Deutsche Latin American Cos Tst PLC
13 August 2001



                       REPORT FOR THE MONTH OF JULY 2001


SUMMARY

July  was  a  nervous  month  for Latin American equity  markets,  which  were
transfixed  by the ongoing crisis in Argentina.  The MSCI Latin American  Free
Index  fell by 7.1% in sterling terms, led by Argentina (down 22.1%).   Brazil
was  also  weak,  down  8.8%,  mostly due to a  further  depreciation  in  the
currency,  caused  by Argentine concerns.  The Chilean peso  was  also  pushed
almost  6% weaker against the dollar due to the country's important trade  and
investment  links with Argentina.  In contrast Mexico was far more stable,  as
the  slowdown  in that economy was seen to be contained.  World  markets  also
suffered  a  relatively weak July, as a disappointing second quarter  earnings
season  hit  US  stocks, Japan slid towards another recession  and  there  was
little  relief in sight for the technology sector.  The MSCI World Index  fell
by  2.7%  in sterling over the month, while the Emerging Markets index dropped
by  7.8%,  hit  particularly  by declines in technology-sensitive  Taiwan  and
further problems in Turkey.

Our  NAV fell by 8.4% over the month, behind the index despite our zero weight
in Argentina.  The underperformance can be traced to our geared position in  a
weak  market as well as to our overweight Brazil stance.  We raised some  cash
at the end of the month in a precautionary move, in anticipation of continuing
near-term volatility and a likely resolution of the crisis in Argentina.  Most
of the cash came from the sale of our position in Banacci, where the Citigroup
acquisition  was approved earlier than expected, but we also slightly  reduced
our overweight in Brazil.

ARGENTINA

We  have written extensively on the outlook for Argentina in recent months  so
that  readers  will  be familiar with our negative stance.   There  have  been
enormous  efforts  made  both domestically and on the international  stage  in
order  to secure approval for additional spending cuts (the new 'zero  deficit
plan')  and  maintain  the  confidence  of  both  local  depositors  and   the
international  markets.  In the past week Brazil has been the  beneficiary  of
US$15bn of IMF money designed to ring-fence the country from any fallout  from
Argentina,  while  it seemed as if Argentina would not be  given  any  further
monetary  assistance  beyond the $40bn committed at  the  end  of  last  year.
However  as  we  write there are strong rumours of an additional  $5-10bn  for
Argentina  from  the  IMF.   This has allowed the Argentine  bond  and  equity
markets  to rally somewhat and Brazil to strengthen.  However, the next  stage
of  the  story depends on confidence being maintained in the domestic  banking
system.   Deposit  outflows have been significant in recent  weeks,  which  is
starting  to  put  pressure  on international reserves:  hence  the  need  for
additional  IMF  funds.   Interest rates have stayed high  as  benchmark  bond
spreads  widened as far as 1700bp over US treasuries; Moody's again downgraded
its  rating on Argentina to Caa1 from B3 with a negative outlook.  As we  have
said  before,  high  interest rates combined with further  spending  cuts  are
likely  to  depress earnings even more this year, making the equity market  an
unappealing one for foreign investors.  We stay zero weighted.

BRAZIL

The  more  important question is what impact will the situation  in  Argentina
have  on  Brazil.   We said last month that for us a more positive  stance  on
Brazil  would  be conditional on three factors; a resolution in  Argentina,  a
benign  inflation outlook and the impact of the energy crisis being relatively
contained.  Continuing volatility in Argentina will prolong Brazilian currency
weakness  and  keep monetary policy tight.  We assume however  that  an  early
resolution  is  likely  and  that  Brazil  has  enough  international  support
(manifested  in  the  $15bn IMF facility) to avoid a payments  crisis  on  its
external debt.  The IMF facility has been accompanied by an undertaking to cut
spending  and  increase the primary fiscal surplus for  this  year  and  next.
There  have  also been encouraging legislative moves to introduce independence
for the Central Bank, which should reassure the markets.

As  to inflation, prices have continued to rise, most recently due to hikes in
government administered tariffs: year on year IPCA inflation was 7.3% in  June
with  a  higher figure indicated for the first two weeks in July.  The Central
Bank  raised the overnight interest rate to 19% on 18 July in order to attempt
to stem inflationary pass-through from the recent currency weakness.  However,
we  should  expect rates to need to move temporarily higher should  conditions
deteriorate  further in Argentina.  It is still too early  to  draw  any  real
conclusions  about  the  impact of the energy crisis on  the  economy  or  the
effectiveness of rationing, which however seems to be proceeding in line  with
or  slightly ahead of expectations.  However, the negative impact has  already
shown through in Brazilian industrial production figures, which slowed sharply
in May and June.

For the moment, we remain modestly overweight Brazil, expecting a re-rating in
the market while alert to indicators of renewed weakness.

MEXICO

Mexico  has  proved immune to Argentine contagion, with the equity market  and
currency remarkably stable in recent weeks.  However, it is not immune to a US
slowdown: the economy has clearly decelerated, from 5.1% YOY growth in Q4 2000
to  1.9%  in  Q1  2001  and  below  1% in  Q2.   There  has  however  been  no
deterioration  in the external accounts, inflation has fallen further  and  so
have interest rates.  In the last week, the government has announced MXP 6.8bn
of spending cuts in order to meet its 2001 fiscal target.  At the same time it
was able to raise $1.5bn in new 30-year paper at only 335bp over US Treasuries
in  an  issue  that  highlighted the positive stance of most global  investors
towards  Mexico and the US convergence story.  We remain positive and modestly
overweight  the  market, with a bias towards adding names that  would  benefit
from a cyclical recovery in the US.

CHILE

Chile  again suffered from significant Argentine-induced currency weakness  in
July, when the peso depreciated by 5.7% against the USD.  Notwithstanding,  we
have   begun  to  see  some  signs  of  the  long-awaited  economic  recovery.
Industrial production rose by 6.3% YOY in June, led by the capital  goods  and
mining  sectors.   Interest  rate cuts have  begun  to  have  some  impact  on
consumers,  as  retail  sales rose by 3.8% in the same period,  the  strongest
since  April  2000.  Unemployment has stayed relatively flat  at  9.7%,  which
should help sustain confidence.  Despite the weak outlook for exports to Asia,
and  the  softness  in prices of Chile's main export commodities  (copper  and
pulp)  we believe that the economy is now turning which should help the equity
market.   We  are close to neutral in Chile, and are beginning  to  slant  our
portfolio towards stocks more likely to benefit from economic recovery.

ANDEAN MARKETS

The  smaller Andean markets were relatively defensive in July, with  Venezuela
down  only  1.6% in sterling terms, and Peru and Colombia declining  4.3%  and
4.6%  respectively.   This  was  despite continued  signs  of  stress  in  the
Venezuelan  financial system and the admission of significant capital  flight,
which  has  provoked  strong language from President  Chavez.   Venezuela  has
revised  its official growth forecast down to 4% for 2001 principally  due  to
the  cut  in  oil  production agreed by OPEC.  CANTV, our  only  holding,  has
performed  relatively well due to good financial results and the  expectations
of  an imminent takeout.  Peru saw the inauguration of Alejandro Toledo as the
new  President and appointment of a market-friendly cabinet.  However GDP fell
by  1%  in  Q2,  weaker than consensus, highlighting a lack of private  sector
investment  and spending.  Colombia released good inflation results  for  July
which  showed that the Central Bank's 8% target for the year-end  had  already
been  achieved.   However,  this  reflects  a  continuing  economic  slowdown:
official growth forecasts have been lowered to 2.4% for 2001 and 4% for  2002.
We are zero weighted in both Peru and Colombia.

NET ASSET VALUE                                              
                                                     Fully diluted
                               31/07/01  30/06/01 31/07/01  30/06/01
                                 82.3p     89.8p    86.0p     92.0p

MID-MARKET SHARE PRICE               31/07/01   30/06/01
Ordinary Shares                       68.00p     74.50p
Warrants                              17.75p     22.50p


NAV based on total assets less current liabilities of £39.5 million (£43.1
million).

                                       Market exposure
                                     31/07/01   30/06/01
                                         %          %
EQUITIES                                                 
                                                         
Brazil                                 33.2          36.6
                                                         
Chile                                   9.8           9.6
                                                         
Mexico                                 37.4          41.0
                                                         
Venezuela                               1.1           1.1
                                                         
TOTAL PORTFOLIO                        81.5          88.3
                                                         
Net Current Assets                     18.5          11.7
                                   --------      --------
TOTAL                                 100.0         100.0
                                   --------      --------

Based on total assets of £50.0 million (£53.8 million).
                                                         
GEARING                                                  
Gearing at                           31/07/01    30/06/01
                                      26.6%         24.7%
                                       ====          ====


LARGEST HOLDINGS (market value £36.9 million equal to 90.6% of total
portfolio)
                                                      
                                                         % of
                            Country          £000's   portfolio
Telmex                       Mexico          5,426       13.3
Petrobras                    Brazil          3,480        8.5
Banco Ita£                   Brazil          2,530        6.2
Ambev                        Brazil          2,431        6.0
Femsa                        Mexico          2,166        5.3
Wal-Mart de Mexico           Mexico          2,009        4.9
America Movil                Brazil          1,579        3.9
Cemex                        Mexico          1,555        3.8
Grupo Modelo                 Mexico          1,516        3.7
Vale do Rio Doce             Brazil          1,516        3.7
G.F BBVA-Bancomer            Mexico          1,319        3.2
Eletrobras Centrais          Brazil          1,302        3.2
Grupo Televisa               Mexico          1,270        3.1
Sider Nacional               Brazil          1,109        2.7
Brasil Telecom               Brazil          1,001        2.5
Enersis                      Chile             874        2.2
Telecom de Chile             Chile             856        2.1
Tele Norte Leste             Brazil            795        2.0
D & S                        Chile             708        1.7
Kimberly-Clark de Mexico     Mexico            672        1.7
Consorcio Ara                Mexico            622        1.5
Unibanco                     Brazil            593        1.5
Gerdau                       Brazil            581        1.4
CANTV                        Venezuela         542        1.3
Tele Centro Oeste            Brazil            488        1.2
                                                                
FINANCIAL CALENDAR                                              
Half year                                                       31 August 2001

For  further  information, contact Rosie Bichard at Deutsche Investment  Trust
Managers Limited on 020-7545-6000.

For additional copies, changes of address or details of our Private Investors'
Plan,  low  cost ISA and Dividend Reinvestment Scheme (a recently  established
scheme 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 Asset  Management  website
located at www.deam-uk.com/uk/invest/.

Issued by Deutsche Latin American Companies Trust PLC and approved by Deutsche
Investment  Trust  Managers  Limited, regulated by the  Investment  Management
Regulatory Organisation and manager of Deutsche 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 Deutsche Latin  American
Companies  Trust  PLC  presents those risks associated with  emerging  markets
which may at times be illiquid and/or volatile.