Monthly Report - May 2000

Morgan Grenfell Lat Amer Co Tst PLC
12 June 2000


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                       REPORT FOR THE MONTH OF MAY 2000


SUMMARY

May  was a better month for the Latin American region than April, although  we
were  still subject to the vagaries of US market sentiment.  Most of the rally
came  late  in the month after unexpectedly benign US data releases encouraged
investors  hoping for a soft landing.  The regional index, MSCI Latin  America
Free,  fell  0.8%  in  sterling  terms over the  month;  however,  there  were
considerable  variations  within  markets.  Venezuela  was  the  month's  best
performer,  up  19.3%  after  a take-over bid for the  index's  second-largest
stock, utility Electricidad de Caracas.  Chile rallied strongly as the Finance
Minister announced the ending of capital controls on foreign investment in the
local  market.  Brazil put in a good performance, rising 3% in sterling terms,
after positive macro news allowed investors to feel more comfortable about the
economic recovery despite rising US interest rates.  Mexico, in contrast, fell
by  6.3% as its strong US-linked growth came under threat from higher interest
rates  at  home and abroad. And sentiment worsened significantly in  Argentina
after  a  wider than expected fiscal deficit raised concerns about its ability
to meet this year's IMF targets.

Our  NAV  rose  by  1.01%  during the month, outperforming  the  market  by  a
comfortable margin.  We were helped by our big underweight in Argentina,  good
stock  selection in Chile, and our decision to strongly favour  Brazil,  where
some  of  our recent purchases have risen significantly.  However,  the  share
price fell by 1.7% to 71.25p as the discount widened slightly.

It  is  gratifying  to  see  that despite the recent  market  volatility,  our
relative  performance has been improving; according to the latest  comparative
figures  (measured by NAV) we were the best-performing Latin  trust  over  the
last six months.

BRAZIL

The Brazilian MSCI index rose 3% in sterling terms in a month characterised by
weak  volumes.  However, the market's steep rebound (+14.8% from  its  23  May
low)  indicates that generally positive sentiment towards Brazil  is  growing.
Macro  news during the month was good.  GDP growth was announced to have  been
3.1%  in Q1 2000 and April IPCA inflation came in at only 0.42%, which despite
the  effects of a minimum wage hike gives a 6.77% annualised figure, down from
6.9% last month.  Brazil also showed a healthy primary fiscal surplus for  Q1,
reflecting the effects of relatively contained spending and good tax revenues.

During  the  month,  we saw the first steps in the untangling  of  the  cross-
shareholdings  between mining group CVRD and steelmaker CSN, which  should  be
beneficial  to both companies.  We also saw CVRD acquire control  of  Samitri,
the  third  largest  iron ore producer in Brazil, from the  Arbed  group.  The
acquisition  has  a number of strategic positives and demonstrates  a  welcome
focus by CVRD on its core iron ore business.

We  have also seen the first moves in the consolidation of the telecoms sector
in  Brazil.  After Telefonica's buyout of its subsidiaries was approved by the
Brazilian  authorities, and Portugal Telecom launched a tender offer  for  the
rest  of  the common shares in its subsidiary Telesp Celular, Bell  South  has
acquired a significant stake in Tele Centro Oeste. We believe that we will see
further consolidation among the smaller cellular companies in order to improve
efficiency, particularly since the auction of PCS licences later in  the  year
will only increase competition.

During  the  month,  we purchased a new holding in Tele  Nordeste  Celular,  a
cellular  company controlled by Telecom Italia, in order to benefit from  this
consolidation theme.  The stock had fallen sharply from its March highs and we
saw this as an attractive entry opportunity.  It has performed very well since
our  purchase.   Our  weighting  in Brazil has  now  risen  to  a  significant
overweight (43% vs 35% for the MSCI).

MEXICO

The  Mexican market fell 6.29% in sterling terms over the month, making it one
of  the  region's worst performers.  This fall adds to its 9% drop  in  April.
Interest  rates  have risen convincingly, as we expected,  with  28-day  Cetes
moving  up over the month from levels below 13% to almost 15.5%.  This  brings
real  rates  back  around   a  more realistic  5%  level,  in  step  with  the
authorities' need to calm the exuberant domestic economy.

Mexican  Q1  GDP growth was 7.9%, the fastest growth for nearly  three  years.
This  figure  was  announced on the same day that the US Fed raised  rates  by
50bp.  At the same time, the Mexican Central Bank tightened monetary policy by
increasing  the 'corto' by a largely symbolic MXP20 million.  Inflation  still
looks  benign,  up  only 0.37% in May and 9.48% YOY.  However,  the  peso  has
weakened somewhat, which has been blamed on political uncertainties going into
the  July  2 election.  The race still looks close, although the latest  polls
show  Fox  losing  some  momentum and better  ratings  for  the  ruling  PRI's
Labastida.

In  corporate news, France Telecom announced plans to sell its $2.5bn stake in
Telmex  in  a  global public offering in order to raise cash  for  its  recent
purchase of Orange.  We remain neutral in Mexico.

CHILE

Last month, the Central Bank announced the elimination of the one-year holding
period  on foreign investment in the local stock market.  This had been widely
anticipated,  but  the  actual  timing was a  surprise.   We  anticipate  that
international investors will now start to look seriously at some of  the  more
liquid  local stocks, although because local pension funds should be  able  to
invest more abroad the net effect may be fairly neutral.  The Finance Minister
has  also said that capital gains tax for foreigners will be removed in a bill
to  be  put  before Congress in the next few months.  This news provided  some
support to the market, which rose 6.2% in sterling terms.  Investors were also
attracted  to  Chile  for its traditional qualities as  a  safe  haven  during
regional  turbulence, a perception which was helped by the continuing economic
recovery.   GDP  grew  5.5%  in Q1, driven by strong  consumption  and  export
figures.   Our holdings in Enersis and retailer D & S did well.   We  made  no
changes to our Chilean portfolio during the month and remain close to neutral.

ARGENTINA

The Argentine market fell 2.1% in sterling terms during May.  Confidence ebbed
away  after the release of disappointing numbers for the April fiscal deficit,
which  led to concerns that Argentina might not be able to meet the IMF target
of  a  US$696m   deficit for Q200.  The Finance Ministry announced  a  further
round  of budget cuts totalling $940m in an attempt to meet the targets.   The
package requires significant public sector wage reductions which are likely to
be  unpopular with Argentina's powerful unions. Major structural  reforms  are
still  needed  to  reduce  the  amount of  transfers  made  from  the  federal
government to the provinces.  However, the real problem this year  is  due  to
the  lack  of  revenues.  As the economy has failed to show any real  recovery
which would provide revenue growth, it is far from clear that the budget  cuts
alone  will  allow the government to hit its 2000 deficit target.   We  remain
underweight, and convinced that dollarisation is now inevitable.

During  the  month,  the leading Argentine bank Banco de Galicia  announced  a
controversial capital restructuring which will significantly dilute the voting
rights  of  minority shareholders.  The stock dived on the news, falling  over
20%.   The terms of the deal were later slightly improved, but still mean that
minority shareholders would have little say in the event of a takeover bid.

ANDEAN MARKETS

The Andean markets showed a wide variation in performance during the month.

Colombia  fell by 12.3%, of which about half was due to a further  decline  in
the  peso.   This  was caused by a continued deterioration  in  the  political
environment   which  threatened  to  jeopardise  the  reform  process.    Some
rapprochement  now  seems  to have been reached,  but  the  situation  remains
fragile.   Standard  and Poors downgraded the country's foreign  debt  to  two
notches below investment grade, citing the weak fiscal outlook.

Peru  fell  by  6%,  as  political tensions escalated  ahead  of  the  May  28
Presidential  election.   President Fujimori's challenger,  Alejandro  Toledo,
called  for  the  elections to be delayed due to considerable  irregularities.
However  the  ruling  party  insisted on going  ahead  despite  protests  from
international  observers.   Toledo then urged his supporters  to  boycott  the
polls:  in the end, 30% of voters invalidated their ballots in protest  but  a
Fujimori  win  was  confirmed.  Sanctions  and  protests  from  the   US   and
international agencies were feared but now seem unlikely; so far, the OAS  has
announced  it  will  send  a mission to the country  in  order  to  strengthen
democracy.

The  elections  have  taken a toll on Peru's public sector  finances;  despite
rebounding  growth  (GDP  grew  8.6%  in Q1  2000)  the  primary  balance  has
deteriorated  from  a  1.4% surplus in Q199 to a 0.1% deficit  in  Q100.   The
overall  fiscal position has picked up since its worst point (Q399)  but  this
means  the government now needs to keep a careful control of spending for  the
rest  of the year to meet its IMF targets which may be difficult when it needs
to restore confidence and regain public support.

Venezuela rose 19.3% in sterling terms during May, largely due to a bid by  US
utility  AES  for the index's second-largest stock, Electricidad  de  Caracas.
The  stock rose from $13 to $27 as the company's management rejected the offer
and  launched an aggressive stock buyback programme.  After several weeks, AES
finally announced that it had gained control of the company.  This means  that
CANTV,  the  telecoms company we hold, is likely to be the only  liquid  stock
available for international investors in the Venezuelan market.

Venezuelan  GDP grew by 0.3% in Q1 2000, the first positive growth  in  nearly
two  years, led by the private sector.  The recovery seems to be only gradual,
and still weak demand has produced falling inflation (the 12-month rate in May
was  only  16.9%,  against  20%  in  December).   Election  worries  also  hit
Venezuela,  with President Chavez cancelling the poll due on  May  28  due  to
technical difficulties.  A new date has yet to be announced.

We  made  no changes to our position during the month, and are underweight  in
the Andean region as a whole.


NET ASSET VALUE                                              
                                                    Fully diluted
                               31/05/00  30/04/00 31/05/00  30/04/00
                                 89.8p     88.9p    91.8p     90.9p
 
MID-MARKET SHARE PRICE               30/04/00   30/04/00
Ordinary Shares                       71.25p     72.50p
Warrants                              21.75p     22.50p


                                         Market exposure
                                     31/05/00      30/04/00
EQUITIES                                                 
                                                         
Argentina                               1.4           1.3
                                                         
Brazil                                 43.0          37.9
                                                         
Chile                                  12.5          10.7
                                                         
Colombia                                0.5           0.6
                                                         
Mexico                                 38.0          45.7
                                                         
Peru                                    1.7           1.9
                                                         
Venezuela                               1.9           1.8
                                                         
TOTAL PORTFOLIO                        99.0          99.9
                                                         
Net Current Assets                      1.0           0.1
                                     ------       -------
TOTAL                                 100.0         100.0
                                     ------       -------

Based on total assets less current liabilities of £48.4 million (£51.3
million).
                                                         
GEARING                                                  
Borrowings and Gearing at            31/05/00   30/04/00
                                      £000's     £000's
                                        NIL        NIL
                                       ====       ====
                                                         

LARGEST HOLDINGS (market value £40.5 million equal to 84.5% of total
portfolio)
                                                      
                                                         % of
                            Country          £000's   portfolio
Telmex                       Mexico          6,775       14.1
Tele Norte Leste             Brazil          3,049        6.4
Telecom de Chile             Chile           2,207        4.6
Vale do Rio Doce             Brazil          2,076        4.3
Petrobras                    Brazil          2,034        4.3
Banco Itau                   Brazil          2,001        4.2
Tele Centro Sul              Brazil          1,895        4.0
Femsa                        Mexico          1,878        3.9
Unibanco                     Brazil          1,780        3.7
Brahma                       Brazil          1,618        3.4
Gerdau                       Brazil          1,306        2.7
Grupo Modelo                 Mexico          1,277        2.7
Embratel                     Brazil          1,233        2.6
Grupo Televisa               Mexico          1,166        2.4
Telesp Celular               Brazil          1,154        2.4
Banamex                      Mexico          1,023        2.1
Cemex                        Mexico            983        2.1
Kimberly-Clark               Mexico            980        2.1
Soriana                      Mexico            977        2.0
CANTV                        Venezuela         894        1.9
Alfa                         Mexico            873        1.8
Enersis                      Chile             861        1.8
D & S                        Chile             856        1.8
Credicorp                    Peru              832        1.7
Grupo IMSA                   Mexico            732        1.5
                                                                
FINANCIAL CALENDAR                                              
Annual General Meeting                                           30 June 2000
Subscription date for warrants                                   30 June 2000
Final dividend paid                                               4 July 2000

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  and  low  cost ISA contact Mark Pope on 020-7545-0520,  e-mail  address:
[e-mail].   Further  details of the  Morgan  Grenfell  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.co.uk

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.