Monthly Report -June 2001

Deutsche Latin American Cos Tst PLC
11 July 2001

                       REPORT FOR THE MONTH OF JUNE 2001

SUMMARY

Latin  American markets had a relatively good June; in a month when  developed
markets,  particularly  Europe and Japan, were weak due  to  the  increasingly
shaky  outlook for corporate earnings, the Latin American region outperformed:
MSCI  Latin America Free Index fell by just 0.25% in sterling terms against  a
fall  of  2.3%  for  MSCI World.  The regional index was led  by  the  smaller
markets,  as  Peru  rose by 8.3% following the election of  Alejandro  Toledo.
Mexico  continued to appreciate, up 2.4% over the month, while  Argentina  and
Chile performed poorly, both down by over 5%; concerns over the sustainability
of  Argentina's fixed exchange rate system dominated newsflow and have  caused
significant  weakness in the Chilean and Brazilian currencies.  Brazil  raised
interest  rates again in response, and has declared its intention to intervene
to  support  the Real: this allowed an improvement in the performance  of  its
currency  and  equity  market towards the end of the month.   However,  events
since  then  in Argentina, notably weakness in the progress of the coalition's
political agenda, have provoked renewed declines both there and in Brazil.  We
believe  that  until a more permanent settlement is achieved in  Argentina  we
will be unlikely to see a re-rating for the Brazilian market: however it seems
as if such a move may not be far away.

Our own performance was positive in June as our NAV rose by 0.2%, ahead of the
index.   For the second quarter of the calendar year, our NAV was up by  11.9%
against  an  index rise of 8.2%.  However, our share price failed to  keep  up
with  the NAV improvement, falling by 4.2% as the discount widened out to  17%
by the month end.

At  our  AGM on 29 June shareholders voted by a substantial majority  that  we
should  continue as an investment trust for another year.  We are grateful  to
our  shareholders for their support and look forward to a year  in  which  the
region's markets make more progress based on a resolution of the situation  in
Argentina,  an  improving outlook for global growth and company earnings,  and
further progress towards convergence between the US and Mexican economies.

MEXICO

Despite  unmistakable  signs  of  a slowing  economy,  where  official  growth
estimates  have  edged  down from 4.5% to 2% over the  past  few  months,  the
Mexican  equity  market  appreciated  by  2.4%  in  June  in  sterling  terms.
Inflation was lower than expected in June, up only 0.2% for the month or  6.6%
over  the  twelve month period and therefore on track to meet the government's
target  of 6.5% for the year.  As a result, interest rates were able  to  fall
further,  and  are  now at 6% in real terms for the 91 day  rate.   The  trade
deficit  has  shown a remarkably small deterioration, despite the  falloff  in
exports  to the US manufacturing sector and relatively robust consumer demand.
All eyes now are on the progress of negotiations on the fiscal reform bill.

Corporate news included the announcement of a share buy back by leading bakery
group Bimbo, which provided a major boost to its stock price, and the revision
of earnings guidance for the second quarter and second half of the year by the
major  groups.  We met with the senior management of Cemex, conglomerate Grupo
Industrial Saltillo and cellular company America Movil in our London  offices,
and  one  of  our  team is attending a Mexican consumer goods conference  this
week.  We made no major changes to our portfolio over the month.

BRAZIL

The Brazilian market fell by 0.9% in June, rallying strongly towards the month
end as Central Bank President Arminio Fraga hiked interest rates by 150bp.  He
also  announced a new policy of intervention in the currency market to support
the  weak Real, which had fallen by close to 20% against the dollar since  the
start   of  the  year,  influenced  by  spillover  fears  from  Argentina,   a
deteriorating trade balance, the negative impact on growth of the  electricity
crisis, and political infighting.  The currency's weakness had provoked  fears
of  a pass through to inflation, jeopardising the official target of 4-6%  for
the  year.   So  far,  recent inflation figures have been  relatively  benign,
thanks  to a decline in food prices, and the evident slowdown in many  sectors
of  the economy should offset any pressures from tariff increases.  However we
cannot predict with any certainty if the electricity rationing programme  will
be  inflationary nor whether companies will attempt to recover some  of  their
dollar  margins  lost through the currency devaluation.  As  a  result  it  is
difficult  to judge if the interest rate cycle has yet peaked.   Much  of  the
market's direction also rests on developments in neighbouring Argentina, where
the political environment has deteriorated since the month end.

In  corporate news, steel company CSN announced a further significant dividend
resulting  from  the  divestment  of its cross  holdings  in  CVRD,  and  also
announced  the  $50m acquisition of a US steel processing facility,  Heartland
Steel.   Brazilian  pulp  and paper companies Aracruz  and  VCP  produced  the
winning  bid  for  CVRD's subsidiary Cenibra; although its  Japanese  minority
shareholders  may try to block the deal, it indicates a rational  approach  to
industry consolidation and growth among the leading players which is positive.
Aircraft  manufacturer Embraer placed a $750m offering  of  preference  shares
being sold down by its controlling shareholders including the development bank
BNDES.  We held meetings with the senior management of iron ore producer CVRD,
bank  Unibanco  and  supermarket group Pao de Acucar in  London,  as  well  as
attending  a  small group lunch with Francisco Gros, head of BNDES,  where  we
discussed the crisis in the electricity sector and the strength and weaknesses
of  Brazil's  macro and micro-economic policy in considerable detail.   During
the  month  we  further reduced our weighting in Unibanco, which  has  been  a
relatively  good  performer, and added to our holding in Brazil  Telecom.   We
also  acquired a new holding in Tele Centro-Oeste Celular, a stock which looks
certain  to  be  sold  by  its  controlling  shareholder  within  the  ongoing
consolidation of the sector.

ARGENTINA

Argentina  again  generated the greatest amount of  concern  over  the  month,
falling  by  5.6%  in  sterling terms.  After the  successful  US$29.5bn  debt
exchange, which we reported on last month, the market initially regained  some
stability.   However  this  was  lost when Finance  Minister  Domingo  Cavallo
announced  the  introduction  of  a  dual  exchange  rate  for  foreign  trade
transactions, effectively giving the export sector the benefit of  an  ARP1.08
exchange  rate against the US dollar.  This type of mechanism has rarely  been
successful in the past and also penalises imports, which are important in  the
cost  base  of  many  exporters.  We believe that to  have  the  architect  of
convertibility  effectively admit that there is a  problem  with  the  current
exchange rate spells the end for convertibility.  The market showed its unease
by  pushing  spreads  on Argentina's debt up above 1000bp over  Treasuries,  a
level  at which this year's growth targets are likely to be difficult to meet.
Domestic data continues to be weak, and further concern was aroused by  a  row
with  the provincial governors over essential spending cuts.  We remain  zero-
weighted in Argentina and are monitoring developments with particular  concern
given their undeniable short-term impact on Brazil.

CHILE

The Chilean market fell by 5.7% in sterling terms during June, as the currency
weakened   further.   The  Chilean  peso  has  been  negatively  affected   by
developments  in  Argentina,  to  which it is tied  by  substantial  bilateral
investments.  It has also seen the prospects for economic growth  weaken  this
year  as  Japan has fallen back into recession and prices for its  key  export
commodities  have  softened.   Domestic data shows  still-rising  unemployment
holding back consumer confidence and a lack of private sector investment.   In
response  the  Central  Bank has cut rates to a low of 3.5%  above  inflation.
Recent reforms to capital markets legislation, including the abolition of  CGT
for  foreigners, produced strong gains for the market year to date and to some
extent  June's losses also reflect an element of profit taking.   We  made  no
changes to our Chilean portfolio during the month.

ANDEAN MARKETS

Peru led the region in June with an 8.3% rise in sterling terms following  the
election  of  Alejandro  Toledo as President and the appointment  of  orthodox
economist  Pedro  Pablo Kuczynski as Minister of Finance.   However  a  severe
earthquake in the south of the country combined with the arrival of Fujimori's
disgraced  spy  chief  Vladimiro Montesinos to stand  trial,  bringing  30,000
videos  recording abuses under the former regime, is likely to create problems
for  the  new government.  GDP fell by 0.4% in May, accumulating a  1.6%  drop
over  the first five months of the year.  We remain on the sidelines until  we
see signs of growth returning.

Colombia  rose by 4% on signs of political and economic progress  including  a
US$2.5bn  local debt swap.  However, growth seems to have slowed significantly
and the country's inflation, running at 7.9% for the twelve months to May,  is
up  against the 8% year end target.  Venezuela fell by 4.7%, led by  CANTV  on
fading  prospects of a tender offer.  Inflation, at 12.5% accumulated for  the
twelve months to June, is proving stubborn, and official unemployment rose  to
14.5% in April.  We made no changes to our portfolio over the month.

NET ASSET VALUE                                              
                                                  Fully diluted
                               30/06/01  31/05/01 30/06/01  31/05/0
                                 89.8p     89.6p    92.0p     91.8p

MID-MARKET SHARE PRICE               30/06/01   31/05/01
Ordinary Shares                       74.50p     77.75p
Warrants                              22.50p     22.25p


NAV based on total assets less current liabilities of £43.1 million (£43.0
million).

                                       Market exposure
                                     30/06/01      31/05/01
                                         %             %
EQUITIES                                                 
                                                         
Brazil                                 36.6          35.2
                                                         
Chile                                   9.6          10.4
                                                         
Mexico                                 41.0          40.7
                                                         
Venezuela                               1.1           1.1
                                                         
TOTAL PORTFOLIO                        88.3          87.4
                                                         
Net Current Assets                     11.7          12.6
                                     ------        ------
TOTAL                                 100.0         100.0
                                     ------        ------

Based on total assets of £53.8 million (£53.6 million).
                                                         
GEARING                                                  
Gearing at                           30/06/01   31/05/01
                                      24.7%         24.5%
                                       ====          ====


LARGEST HOLDINGS (market value £42.9 million equal to 90.3% of total
portfolio)
                                                      
                                                         % of
                            Country          £000's   portfolio
Telmex                       Mexico          5,564       11.7
Petrobras                    Brazil          4,075        8.6
Ambev                        Brazil          2,962        6.2
Banco Itau                   Brazil          2,918        6.1
Femsa                        Mexico          2,397        5.1
Banamex                      Mexico          2,372        5.0
Wal-Mart de Mexico           Mexico          2,139        4.5
America Movil                Brazil          1,691        3.6
Vale do Rio Doce             Brazil          1,683        3.5
Grupo Modelo                 Mexico          1,632        3.4
Cemex                        Mexico          1,528        3.2
G.F BBVA-Bancomer            Mexico          1,474        3.1
CSN                          Brazil          1,367        2.9
Grupo Televisa               Mexico          1,317        2.8
Eletrobras                   Brazil          1,244        2.6
Brasil Telecom               Brazil          1,227        2.6
Unibanco                     Brazil          1,069        2.3
Tele Norte Leste             Brazil          1,023        2.2
Telecom de Chile             Chile             960        2.0
Enersis                      Chile             934        2.0
D & S                        Chile             728        1.5
Kimberly-Clark de Mexico     Mexico            684        1.4
Gerdau                       Brazil            680        1.4
Consorcio Ara                Mexico            622        1.3
Embratel                     Brazil            617        1.3
                                                                
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.