Portfolio Update

Merrill Lynch Latin Amer Inv. Trust
15 September 2006

MERRILL LYNCH LATIN AMERICAN INVESTMENT TRUST PLC

All information is at 31 August 2006 and unaudited.

Performance at month end is calculated with net income reinvested

                                            One          Three              One           Three            Five
                                         Month         Months              Year           Years           Years
Sterling:
Net asset value                            0.4%           7.8%            30.0%          133.5%          120.9%
Share price                                2.2%           7.9%            45.1%          198.8%          185.2%
MSCI EM Latin American                   -0.9%            6.6%            32.0%          160.5%          159.0%
US Dollars:
Net asset value                            2.3%           9.6%            37.5%          180.8%          189.7%
MSCI EM Latin American                     1.0%           8.4%            39.6%          213.2%          239.7%

Sources:  Merrill Lynch Investment Managers, Standard & Poor's Micropal.
At month end
Net asset value*:                           326.96p
Share price:                                315.50p
Total assets:                               £191.0m
Discount:                                      3.5%
Gearing:                                       5.8%
Net yield:                                     1.5%
Ordinary shares in issue:                  55,608,059

*includes 8 months net revenue equal to 2.48p (after interim dividend paid of 1.31p (2.5 cents)).


Geographical Regional Exposure                                % of Total Assets
Brazil                                                                     62.4
Mexico                                                                     29.6
Chile                                                                       4.7
Argentina                                                                   3.9
Colombia                                                                    0.7
Panama                                                                      0.5
Net current liabilities                                                   (1.8)
                                                                          -----
Total                                                                     100.0
                                                                          -----




Ten Largest Equity Investments (in alphabetical order)
Company                                                               Country of Risk
AmBev                                                                 Brazil
America Movil                                                         Mexico
Banco Bradesco                                                        Brazil
Corporacion GEO S.A. de C.V.                                          Mexico
CVRD                                                                  Brazil
Petrobas                                                              Brazil
Tenaris                                                               Argentina
Unibanco                                                              Brazil
Usiminas                                                              Brazil
Walmart de Mexico (Walmex)                                            Mexico




Commenting on the markets, Will Landers, representing the Investment Manager
noted:



Performance

For the month of August 2006, the Merrill Lynch Latin America Investment Trust
posted a 2.3% increase in its NAV and 3.6% return for its shares (all in USD).
This compares favourably with the 1.0% return (in USD terms) posted by its
benchmark, the MSCI EM Latin America Free Index.  For the year-to-date, the fund
posted a 16.0% growth in NAV and 25.8% return for its shares, while the
benchmark posted a 16.6% return (all in USD terms).



Most of the month's outperformance was derived from positive stock selection in
Brazil, where overweights in railroad operator ALL, TAM airlines and recently
added utility CESP topped the list, along with underweights in large caps CVRD
and Petrobras.  Detractors from performance included steel producer Usiminas and
oil services provider Tenaris.



Transactions/Leverage

During the month of August, a number of holdings were bought and sold
intra-country, but without any significant impact on overall country weightings.
  At the margin, holdings in Brazil and Panama were reduced slightly and
exposure to Argentina and Mexico were increased.  In Argentina, the Company
continued to add to Tenaris given the strong prospects for the oil services
industry and a pullback in the stock.  In Brazil, holdings in Bradesco and Itau
were sold and proceeds reinvested in Unibanco, given more positive relative
valuation and short-term growth prospects, and the Company also sold its holding
in Perdigao due to poor industry fundamentals.  Additionally the Company took
some profits in Petrobras and Usiminas, using some of these to add to VCP due to
continued strength in pulp prices.  Finally, profits were taken in Copa Airlines
in Panama and added to Femsa in Mexico due to attractive growth prospects and
continued rerating of its Mexican beer and retail operations.



Positioning

The Company continues to be positioned with a large overweight in Brazil and
underweights in Chile and Mexico.  In Brazil, the market was positively
surprised by the Copom's decision to reduce rates 50 bps during August - the
benchmark Selic rate currently stands at 14.25% and should finish the year well
below 14%.  As a result, we continue to be positive on Brazil's domestic economy
and the Company has a large overweight in domestic-related Brazilian stocks.
The Company continues to be overweight the Chilean consumer sector, mostly via
retailers, and see Chile's economy continuing to post 5-6% GDP growth for 2006
and 2007.  In Mexico, the confirmation of Felipe Calderon's victory in July's
presidential election provided a boost for the market - we feel that Mexican
valuations already reflect a lot of the good news and remain somewhat sceptical
regarding the passage of significant reforms during the next government.  We
therefore continue to focus on infrastructure and homebuilders in Mexico along
with overweights in pan-regional wireless provider America Movil and leading
retailer WalMart de Mexico, given strong growth prospects for both companies.




Latest information is available by typing www.mlim.co.uk/its on the internet,
'MLIMINDEX' on Reuters, 'MLIM' on Bloomberg or '8800' on Topic 3 (ICV terminal).



15 September 2006


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