Report for the Month of February 2000

Morgan Grenfell Lat Amer Co Tst PLC
16 March 2000


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Morgan Grenfell Latin American Companies Trust
                                       
                                       
                                       
                     REPORT FOR THE MONTH OF FEBRUARY 2000


SUMMARY

Latin America staged a rebound in February after the previous month's losses.
The announcement by Moody's on February 2 that it was considering raising its
ratings on Mexican debt caused a strong rally in the Mexican stock market.
Latin American markets also experienced some relief after the US Fed raised
rates by only 25bps at its February meeting.  For the month, the MSCI Latin
America Free Index rose 10.55% in sterling terms, outperforming MSCI World
(+2.96%) as well as the overall global emerging markets index (4.03%).  The
strongest markets were Venezuela (+22%) boosted by the steady rise in oil
prices, Mexico (16.7%) and Argentina (+16.6%).

During the month, our NAV rose 9.85%, slightly behind the rise in the index.
The main reasons for our underperformance were our underweights in Argentina
and Venezuela and our stock selection in Mexico, where we did not hold many of
the market's most high-beta names.  However, stock selection in Brazil was a
major positive.  Our share price rose 7.67% to 84.25p with the discount
remaining more or less flat at 15.2%.

MEXICO

The prospect of Moody's raising Mexico's foreign currency debt rating to
investment grade, which we have long believed would happen this year, came
closer in February.  Indeed the upgrade has just been confirmed as we write
this report.  This prospect dominated stock market activity over the month, as
investors sought out companies likely to benefit from lower financing costs.
The upgrade has much wider and very positive implications for the market,
raising the prospect of a broader investor base for both equity and debt
securities, reinforcing already-strong capital flows (FDI reached US$11.9
billion in 1999) and, together with a firm oil price, contributing to a
stronger currency in 2000, which in turn should benefit inflation.

Recent macroeconomic releases from Mexico have been good; Q4 99 GDP was a
stronger than expected 5.2%, with full year 1999 GDP growth reaching 3.7%.
The fiscal deficit ended the year at just 1.15% of GDP, and inflation figures
for January and February were subdued, so that the official target of 10% for
2000 looks achievable.  Our only concern is the potential expansion of the
current account deficit as the economy grows.  On the political front, the
PRI's candidate, Francisco Labastida, saw his lead narrow and even vanish
against Vicente Fox of the PAN in several polls indicating voter preferences
ahead of the July Presidential election.

The banking sector seems set for major change as Spain's BBVA announced its
interest in acquiring Mexico's second largest bank, Bancomer, and the
government prepares to push through the sale of the third largest, Serfin.
We think the fact that a European bank is prepared to buy and recapitalise
Bancomer is a major positive for the banking sector and for the whole economy.
S&P cited fragility in the financial sector as a major reason why it would not
consider a rating change before the election.

During the month we sold our holding in beverage company Coca Cola Femsa which
had seen a steep rise in its share price.  We added to our weighting in its
parent company Femsa, which also owns one of Mexico's two largest brewers.  We
also reduced our holding in media company Televisa after the share price rose
well above our target.  Nevertheless, we maintained our Mexican overweight.

BRAZIL

The MSCI Brazilian Free Index rose only 7% in February, less than the rise
recorded for the region as a whole.  This was despite some very strong rallies
in several of the cellular stocks in particular: many of the major index
constituents were weak.

Overall macroeconomic news in the Brazilian market was positive.  Inflation
figures for February were subdued, the currency has been stable at around the
R1.73 level and the primary fiscal surplus for 1999 came in at R31bn, well
above the IMF target. These releases all indicate scope for interest rate
reductions in the near future, although rates were again left unchanged last
month.  Statistics showed a significant increase in both industrial sales and
capacity utilisation in Q499, earnings releases on balance have been strong.
Nevertheless, the economy is showing unmistakable signs of growth.

S&P changed its outlook on Brazil's foreign debt from stable to positive and
upgraded the rating on long-term local currency debt.  This improving backdrop
allowed Brazil to launch a well received US$1 billion 30-year global bond at
679bps over US Treasuries.

During the month we sold our small holding in Rio de Janeiro electricity
distributor Cerj, and took some profits in fixed line telecoms company Tele
Norte Leste.  We added instead to our holding in Telesp Cellular, which has
experienced significant subscriber growth.

ARGENTINA

The Argentine market rose 16.6% in February, with strong performance in
particular from Telefonica de Argentina after the bid from Telefonica of Spain
that we discussed last month, and from Banco Rio which was the subject of a
tender offer from its controlling shareholder BSCH.

Details of the US$7.4 billion IMF standby loan for Argentina were announced,
requiring both a significant reduction in the fiscal deficit and social
security and labour reforms.  Economic data releases were mixed at best, with
private sector employment and supermarket sales falling in January from
December, although industrial production rose YOY in January.  We continue to
believe that Argentina will struggle to meet its fiscal targets without
choking off economic growth this year, and its significant dependence on
external funding is still of real concern.  The market now looks expensive, as
the recent spate of tender offers have reduced the available investment
options for the local pension funds, driving up valuations in the remaining
stocks.  Given this negative backdrop, we further reduced our weight in Banco
de Galicia during the month.

CHILE

The MSCI Chilean Index fell 0.41% in sterling terms in February.  Although the
Central Bank left local interest rates unchanged during the month, the recent
strength of the economy, which grew 4.9% YOY in December, leads us to expect a
further rise in rates in March.  The Chilean peso has strengthened
significantly, up 4.2% since the start of the year, so that despite the
economic recovery consumer inflation has so far remained subdued.

During the month, we reduced our holding in Coke bottler Andina, due to our
concern over the outlook for its franchises in Brazil and Argentina.

ANDEAN MARKETS

Venezuela was the strongest performer in the region in February due to a new
tariff agreement reached between the government and telephone company CANTV,
which rallied over 40% during the month.  The stronger oil price provided a
firm background to the government's outline of its 2000 budget.

Peru rose 11.26% following the Telefonica bid for TDP and the announcement
that December GDP grew by 9% based on a strong performance by the export
sector.  Stronger growth was also reflected in higher value-added tax
collection.  The concession for the huge Camisea gas field was finally granted
to an international consortium (Pluspetrol, Hunt Oil Co and SK Group) which
will invest $400m into the field through 2003.

The Colombian market fell 12.85%, erasing the gains made in January when it
was the region's best performing market.  Weak auto sales figures and an
annualised figure for January CPI of 8.3%, the lowest in 20 years, point to
continuing weakness in the economic environment.

During the month we took some profits in TDP which was already reflecting most
of the value of the Telefonica offer.



NET ASSET VALUE                                              
                                                  Fully diluted
                            29/02/00  31/01/00 29/02/00  31/01/00
                                99.2p    90.3p   99.3p    92.0p

MID-MARKET SHARE PRICE               29/02/00   31/01/00
Ordinary Shares                       84.25p     78.25p
Warrants                              26.75p     25.00p


                                       Market exposure
                                     29/02/00   31/01/00
EQUITIES                                                 
                                                         
Argentina                               1.9           3.9
                                                         
Brazil                                 37.5          37.5
                                                         
Chile                                  10.0          11.2
                                                         
Colombia                                0.7           0.8
                                                         
Mexico                                 44.2          41.7
                                                         
Peru                                    3.2           3.6
                                                         
Other                                     -             -
                                                         
TOTAL PORTFOLIO                        97.5          98.7
                                                         
Net Current Assets                      2.5           1.3
                                     ------       -------
TOTAL                                 100.0         100.0
                                     ------       -------

Based on total assets less current liabilities of £59.7 million
(£55.4million).
                                                         
GEARING                                                  
Borrowings and Gearing at            29/02/00     31/01/00
                                      £000's       £000's
                                        NIL           NIL
                                       ====          ====
                                                         

LARGEST HOLDINGS (market value £49.2 million equal to 84.6% of total
portfolio)
                                                      
                                                      
                                                         % of
                            Country          £000's   portfolio
Telmex                       Mexico          9,912       17.0
Tele Norte Leste             Brazil          3,214        5.5
Femsa                        Mexico          2,638        4.5
Telesp                       Brazil          2,289        3.9
Vale do Rio Doce             Brazil          2,196        3.8
Petrobras                    Brazil          2,181        3.8
Tele Centro Sul              Brazil          2,156        3.7
Banco Itau                   Brazil          1,997        3.4
Banamex                      Mexico          1,783        3.1
Grupo Televisa               Mexico          1,766        3.0
Unibanco                     Brazil          1,568        2.7
Telesp Celular               Brazil          1,554        2.7
Telecom de Chile             Chile           1,482        2.5
Gerdau                       Brazil          1,425        2.5
Soriana                      Mexico          1,420        2.4
Grupo Modelo                 Mexico          1,418        2.4
Embratel                     Brazil          1,338        2.3
Quinenco                     Chile           1,330        2.3
Brahma                       Brazil          1,310        2.3
Cemex                        Mexico          1,291        2.2
Alfa                         Mexico          1,198        2.1
Gissa                        Mexico          1,048        1.8
PC Holdings                  Argentina         929        1.6
Desc                         Mexico            901        1.6
Kimberly-Clark               Mexico            865        1.5
                                                                
FINANCIAL CALENDAR                                              
Preliminary Results Announced                                  26 April 2000



For  further  information, contact Rosie Bichard at Deutsche Investment  Trust
Managers Limited on 0207-545-6000.

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Issued  by Morgan Grenfell Latin American Companies Trust PLC and approved  by
Deutsche  Investment  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.