Monthly Report - May 2001

Deutsche Latin American Cos Tst PLC
12 June 2001



                       REPORT FOR THE MONTH OF MAY 2001

SUMMARY

May  was  another positive month for Latin American equity markets.  The  MSCI
Latin  American  Free Index rose by 3.3% in sterling terms,  with  Mexico  and
Chile the strongest of the major markets, up 8.7% and 8% respectively.  Brazil
was  weak,  falling  by 4.7%, hit by a worsening energy crisis  and  political
bickering, while Argentina also underperformed in the run up to its major debt
exchange.   Overall the Latin American region remained the strongest performer
among emerging markets, with the MSCI Global Emerging Markets Free Index up by
1.6%  over the month; the developed markets of MSCI World fell by 0.8% in May.
Year  to date, MSCI Latin America has risen 9.9% in sterling, Emerging Markets
Free by 4.1% and MSCI World has fallen 3.5%.

Our  own performance was good in May, with our NAV rising by 4.9%, well  ahead
of the index, and our share price up by 7.6% as the discount narrowed to 15.3%
at the month end.  Our recent move to increase our Mexico weightings served us
well,  with  strong rises seen in many key stocks in that market  particularly
after  the surprise announcement by Citigroup of its US$12.5bn acquisition  of
Grupo Financiero Banamex-Accival, Mexico's leading banking group.  We see  the
acquisition as a clear positive for Mexico and a further step along  the  road
to  economic convergence with its northern neighbour.  The last few weeks also
witnessed  the  announcement of a tender offer by  Portugal  Telecom  for  the
remaining  shares  in its Brazilian subsidiary, Telesp Celular,  whose  market
value  has  fallen  to a third of what it was immediately after  the  Telebras
privatisation  in 1998.  Corporate activity provides fundamental  support  for
current  market  valuation levels, and while family ownership  of  many  Latin
American  companies  means  that  change  is  unlikely  to  happen  overnight,
international bidders with access to capital at much lower cost will  continue
to  make acquisitions in the region where these are seen as earnings-accretive
and strategically attractive.

BRAZIL

May  was  not a good month for Brazil.  The Brazilian market fell by  4.7%  in
sterling terms, and the currency depreciated by nearly 8% against the  dollar.
The factors behind the fall were various, but chief among them was the growing
realisation that the current energy crisis was serious and would require tough
measures, which will lead to much slower growth this year.  The government has
announced rationing plans designed to reduce electricity consumption  by  20%.
So  far  the  rationing plan has focused on the more developed  south-east  of
Brazil  but there are already suggestions that it will be extended into  other
areas.   The  impact that rationing will have on GDP growth is  uncertain  but
forecasts are for a reduction of between 1% and 2% to previous expectations of
4%  growth for this year.  This compares with the Q1 GDP growth figure of 3.8%
driven  by industrial output.  Concern over this slowdown and the government's
handling of the crisis, alongside a corruption scandal in Congress, forced the
currency lower.  In response, interest rates were raised again to 16.75% in an
effort to contain the inflationary pressure from the weaker Real.

The  worst  performing  stocks over the month were those  in  the  electricity
sector  and  in  energy-intensive industries such as  steelmaking.   The  best
performers  were exporters including pulp producer Aracruz, seen  as  a  hedge
against a weak Real, and cellular telecom stocks which rallied on the news  of
the  Telesp  Celular  tender offer, and on resulting  speculation  of  further
consolidation among the sector's many operating companies.

Towards  the  end  of  the month, we added modestly to  our  holdings  in  the
electricity sector after steep falls.  We believe that the news on the  energy
crisis is already priced into the Brazilian market, that the first indications
show that the inflationary impact should be contained, that the likelihood  is
that  further interest rate rises will be modest, and that the successful debt
swap  in  Argentina should allow concerns there to subside for several months.
As  a  result,  we  feel  that the Brazilian market  is  looking  increasingly
attractive,  and while uncertainty and volatility will persist,  opportunities
certainly exist for us to increase our weighting in selected stocks.

MEXICO

The  Mexican  market did well again in May, rising by 8.7% in sterling  terms,
led  by  shares  in  the financial sector after Citigroup's  $12.5bn  bid  for
Banamex was announced.  Citigroup will pay half in cash and half in shares  to
acquire 100% of Banamex and subsequently plans to list its own shares  in  the
Mexican  market.  The deal sets a number of precedents: a foreign  group  will
acquire  full  control  of  a  Mexican  bank  for  the  first  time;  minority
shareholders  will  receive  the  same  price  as  that  given  to   Banamex's
controlling  shareholders, two of whom will take  up  seats  on  the  Citibank
board;  and  despite  the  40% premium offered, the deal  is  expected  to  be
earnings  accretive  to Citi in the first year, given Banamex's  already  good
level  of profitability and the opportunities afforded by the combined group's
leading market share.  The Mexican immigrant population in the USA is a  clear
target for the bank as well as the underdeveloped banking market in Mexico.

Following the announcement of the deal, the equity market reacted strongly  to
the  perception  that this significant amount of new foreign investment  would
further strengthen the banking sector and was a further step along the road to
investment grade status for Mexico, implying lower interest rates and eventual
convergence with the US economy. In response, the Central Bank moved to loosen
monetary  policy  through the corto mechanism, recognising  that  the  slowing
economy  and  stronger  peso had cooled inflationary  pressures.   Short  term
interest rates have now fallen to 10% in nominal terms with inflation of 5.4%.
The  trade picture in Mexico is still worsening, as weak industrial production
and  exports coincide with still-high levels of consumer spending,  despite  a
sharp  slowdown  in GDP growth (+1.9% in Q1).  There has also been  a  general
recognition that the long-awaited fiscal reform bill will not now  be  debated
until September.  However, Mexico's favourable fundamentals, in particular the
continuing flows of foreign investment and the likelihood of further falls  in
interest rates mean that the stock market should continue to do well.

CHILE

The Chilean market also outperformed in May, up by 8% in sterling terms.  This
rally was led by local shares as capital gains tax for foreigners was removed,
the  last  step  in fully opening the local market to foreign investors.   The
market  was  also pushed higher by corporate activity as a bid  was  made  for
pharmaceutical  company LabChile by Ivax of the US.  We  participated  through
our  local fund in a placing of shares in telecoms company Entel by the Luksic
Group.   However, macro data in Chile has remained relatively weak,  with  the
March GDP proxy showing only 2.4% growth yoy, and unemployment rising to 9% in
April,  although this has allowed inflation to remain subdued despite currency
weakness.  We expect that lower interest rates should start to produce  higher
growth figures in a few months' time.

ARGENTINA

The  Argentine market, where we are zero-weighted, rose by only  1.8%  in  May
amid  nervousness ahead of a planned jumbo debt exchange.  In the end, $29.5bn
of  bonds  were  exchanged for longer-dated issues yielding on average  15.4%.
The  success  of  the swap has been greeted as a short-term  positive  by  the
markets   and  allowed  a  brief  rally  in  the  country's  bonds  and   some
stabilisation  in  the Brazilian currency.  However, now the country's  short-
term liquidity issue has been solved, attention must turn back to the original
problem  of growth.  Macro figures have been mixed, with better data  emerging
towards the end of the month providing some grounds for optimism.  As we  said
last month, the market still does not look like an attractive proposition  for
equity investors.

ANDEAN MARKETS

The  Peruvian  market had a good month, rising by 7.7% ahead  of  the  3  June
presidential election in which Alejandro Toledo narrowly secured victory  over
former   President   Alan  Garcia.   There  is,  however,  still   significant
uncertainty over the direction in which the new President will take  Peru  and
the  support  he will have from Congress.  Meanwhile macro data  remains  weak
(March GDP fell by 3.6% yoy) and it will be some time before any recovery  can
be expected.

Colombia  was  the  strongest market in the region over the month,  rising  by
25.2%  in sterling thanks to the announcement by its leading company, Bavaria,
of a major stock buyback in which we participated, receiving a modest premium.
Growth  slowed in Colombia to 1.75% in the first quarter, due to weaker export
demand  and still-high unemployment.  Some progress was made on fiscal  reform
and  a  large  domestic  bond  swap  was unveiled,  which  also  helped  local
sentiment.  However, prospects for the market remain poor and we believe  that
many  foreign investors like ourselves will have taken the opportunity of  the
Bavaria tender offer to exit the stock and the market's liquidity problems.

Venezuela  rose by 3.9%, led by CANTV on further bid speculation as  AES-owned
local utility EDC announced its intention to sell its stake in CANTV's control
group.  We are however far from clear that a tender from the other controlling
shareholders would include minorities.  As a result further upside  is  likely
to remain limited.


NET ASSET VALUE                                              
                                                     Fully diluted
                               31/05/01  30/04/01 31/05/01  30/04/01
                                 89.6p     85.5p    91.8p     88.5p

MID-MARKET SHARE PRICE               31/05/01   30/04/01
Ordinary Shares                       77.75p     72.25p
Warrants                              22.25p     19.25p


NAV based on total assets less current liabilities of £43.0 million (£41.0
million).

                                       Market exposure
                                     31/05/01   30/04/01
                                          %             %
EQUITIES                                                 
                                                         
Brazil                                 35.2          39.0
                                                         
Chile                                  10.4           9.4
                                                         
Colombia                                  -           0.4
                                                         
Mexico                                 40.7          38.7
                                                         
Venezuela                               1.1           1.1
                                                         
TOTAL PORTFOLIO                        87.4          88.6
                                                         
Net Current Assets                     12.6          11.4
                                     ------        ------
TOTAL                                 100.0         100.0
                                     ------        ------

Based on total assets of £53.6 million (£51.5 million).
                                                         
GEARING                                                  
Gearing at                           31/05/01   30/04/01
                                      24.5%         25.6%
                                       ====          ====


LARGEST HOLDINGS (market value £42.5 million equal to 90.8% of total
portfolio)
                                                      
                                                         % of
                            Country          £000's   portfolio
Telmex                       Mexico          5,414       11.6
Petrobras                    Brazil          4,391        9.4
Ambev                        Brazil          2,843        6.1
Banamex                      Mexico          2,685        5.7
Banco Ita£                   Brazil          2,672        5.7
Femsa                        Mexico          2,375        5.1
Wal-Mart de Mexico           Mexico          2,071        4.4
Vale do Rio Doce             Brazil          1,773        3.8
America Movil                Brazil          1,636        3.5
Grupo Modelo                 Mexico          1,604        3.4
Sider Nacional               Brazil          1,481        3.2
Cemex                        Mexico          1,466        3.1
Grupo Televisa               Mexico          1,375        2.9
G.F BBVA-Bancomer            Mexico          1,355        2.9
Eletrobras Centrais          Brazil          1,168        2.5
Unibanco                     Brazil          1,144        2.4
Tele Norte Leste             Brazil          1,052        2.2
Enersis                      Chile           1,022        2.2
Telecom de Chile             Chile           1,016        2.2
Brasil Telecom               Brazil            819        1.7
D & S                        Chile             773        1.7
Kimberly-Clark de Mexico     Mexico            628        1.3
CANTV                        Venezuela         598        1.3
Consorcio                    Mexico            597        1.3
Gerdau                       Brazil            583        1.2
                                                                
FINANCIAL CALENDAR                                              
Annual General Meeting                                            29 June 2001
Subscription date for Warrants                                    30 June 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.