Monthly Report - June

MORGAN GRENFELL LATIN AMERICAN COMPANIES TRUST
13 July 1999
                                       
                                       
                                       
                                       
                       REPORT FOR THE MONTH OF JUNE 1999
                                       

SUMMARY

The regional index rose in June, more than making up for May's small
correction, as concerns about Fed tightening lessened with Greenspan's
'neutral stance' and the quarter point increase in US rates.

Latin American markets were led by Mexico, our largest area of investment,
which rose just over 10%.  Brazil rose 5.8% but Argentina fell nearly 3%.
Chile performed well with a rise of 7.5% benefiting from another interest rate
cut but, more importantly, a pick-up in the copper price.

The regional index during the month rose 6.5%, and our NAV 6.1%.  Our share
price increased 5.6% to 65.75p, a discount of 21%.

During the first six months of the year we have now seen a rise of 36.5% in
the regional index and of 35.7% in our NAV.  Our share price, benefiting from
a sharp contraction in the discount, has risen 56.5%.

BRAZIL

Interest rates have continued to fall, although only modestly during the month
due to the increase in the USA.  The benchmark Selic rate now stands at 21%,
down from the devaluation level of 45%.  The latest economic data suggests
that the worst of the recession has now passed with a moderate decline of 2.4%
in industrial production and signs of improving consumer confidence.  We are
now seeing monthly dis-inflation and our target for 10% inflation for the year
now looks very conservative.

In the stock market, the combination of cheap valuations and declining
interest rates justifies our renewed confidence and increased exposure.
During the month we completed our new investment in Gerdau in the steel sector
and we also took a position in Banespa the partially privatised state bank of
Sao Paulo where we are expecting the State to sell control to a strategic
investor.  We marginally decreased exposure to another bank, Banco Itau which
has performed very strongly, to fund this investment.

MEXICO

It seems that Mexico has been successful in controlling a soft landing of the
economy in the first quarter; all the evidence now points to increasing
economic activity.  Industrial production grew 4.3% in April andwe are
expecting GDP growth of about 3% for the year as a whole which will compare
very favourably with Argentina and Brazil.

Importantly, as we move towards the year 2000 elections the economy is on a
strong footing, with an undemanding fiscal deficit, and is also now benefiting
from the 'windfall' of a stronger oil price.  Our confidence of a smooth
government transition is increasing althoughthe election process is still at
an early stage.

We remain overweight in Mexico despite the increase of over 50% in the stock
market this year.  The outlook remains constructive with a recovering economy
and a robust corporate profit growth which is likely to exceed analysts'
expectations.  We made no changes to our holdings during the month.

ARGENTINA

As discussed last month, we used the surge in the market following the Repsol
bid for YPF to reduce our exposure to the market and this reduction has
continued since the month end.  Although we have been less concerned than some
about the viability and continuation of currency convertibility our principal
concern is that we think the economic recovery is going to be rather frail and
lagging what we expect in Brazil and Mexico.  That, andthe combination of the
highest equity valuations of these three countries, are the principal reasons
why we have not reinvested the YPF proceeds in the Argentine market and have
further cut our positions.

CHILE

We have remained underweight in Chile for some time since we do not feel that
the economy can recover strongly until commodity prices improve, although
interest rates continue to be cut. The improvement in the copper price in
June resulted in a good bounce in the market but we have yet to see any
evidence of economic improvement.  This may come if the copper rally is
sustained and we may then re-consider our underweight position.  We made no
changes to the portfolio during the month.

SMALLER MARKETS

During the month the Colombian central bank has let the currency band slip 9%
and has also widened the band resulting in a devaluation and a fall of nearly
22% in the value of the equity market index.  This followed a two day attack
on the peso and the use of about $200m of reserves.  The government is also
trying to address the fiscal deficit which was a legacy of the previous
Government.  The devaluation does at least permit interest rates to fall which
may help the economy to recover, however most analysts are still cutting GDP
forecasts and a negative outcome for the year is expected.  We have a very low
level of exposure to the market which is maintained simply because the
valuations of our remaining shares are so low.  It will probably be some time
before we feel the need to increase exposure again.  In contrast we have
maintained our overweight in Peru.  During June the market rose nearly 3% and,
although it has lagged the regional index, a 20% increase since the start of
the year has been worthwhile.  We believe we are seeing the first signs of
improvement in the economy particularly on the export side although domestic
consumption remains weak.  We made no changes to our holdings during the
month.  Our avoidance of Venezuela, despite an important improvement in the
economic outlook resulting from the oil price, looks fully justified by the
recent actions of the President.  There are still no precise details about how
the Chavez government plans to change the constitution or to improve the
economy.  The market rose 3.2% in June and is not much better than flat year
to date.


NET ASSET VALUE                                              
                                            Fully diluted
                               30/06/99  31/05/99 30/06/99  31/05/99
                                 
                                83.0p    78.2p   85.9p    81.9p

MID-MARKET SHARE PRICE               30/06/99   31/05/99
Ordinary Shares                       65.75p     62.25p
Warrants                              21.25p      18.0p


                                    Market exposure
                                     30/06/99   31/05/99
EQUITIES                                              
                                                      
Argentina                               7.6       12.0
                                                      
Brazil                                 29.3       28.2
                                      
Chile                                   9.0        9.1
                                                      
Colombia                                0.7        1.0
                                                      
Mexico                                 41.7       40.1
                                                      
Peru         4.9        5.2
                                                      
Other                                   1.3        1.5
                                                      
TOTAL PORTFOLIO                        94.5       97.1
                                                      
Net Current Assets                      5.5        2.9
                                     ------  ------
                                          -          -
TOTAL                                 100.0      100.0
                                     ------     ------
                                          -          -
Based on total assets less current liabilities of £51.7
million (£48.7 million).
                                                      
GEARING                   
Borrowings and Gearing at            30/06/99   31/05/99
                                      £000's     £000's
                                        NIL        NIL
                                       ====       ====
                                                      

LARGEST  HOLDINGS  (market value £37.2 million  equal  to
76.2% of total portfolio)
                              
                                               
                                                  % of
                                      £000's   portfolio
Telmex                                6,101       12.5
Telesp                                1,887        3.9
Organiz Soriana                       1,821        3.7
Vale do Rio Doce                      1,782       3.7
Tele Nort Leste                       1,766        3.6
Grupo Modelo                          1,722        3.5
Grupo Televisa                        1,635        3.4
Unibanco                              1,603        3.3
Cemig                                 1,515        3.1
Desc                                  1,493        3.1
Banco de Galicia                      1,413        2.9
Telecom de Chile                      1,413        2.9
Petrobras                             1,378        2.8
Embratel                              1,144        2.3
Gissa                                 1,130        2.3
Kimberly-Clark                        1,119        2.3
Alfa                                  1,010        2.1
Telefonica de Argentina                 995        2.0
Cemex                     972        2.0
Perez Companc                           921        1.9
Cementos Lima                           902        1.8
Quinenco                                892        1.8
Femsa                                   885        1.8
ICA 5% Conv. 15/3/04                    871        1.8
Grupo Carso                             840        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.