Report for Month of July 2000

Deutsche Latin American Cos Tst PLC
15 August 2000


Deutsche Latin American Companies Trust



                       REPORT FOR THE MONTH OF JULY 2000



SUMMARY

Latin  American  markets made little progress during July,  despite  generally
positive  local  news.  After the excitement and euphoria over  Vicente  Fox's
unexpected win in the Mexican presidential elections, attention turned back to
more prosaic factors, including second quarter earnings releases from many  of
the  region's major companies, sharp cuts in Brazilian interest rates, and the
fortunes of the US stock market.  The MSCI Latin America index fell by 1.2% in
sterling terms over July, although it outperformed Emerging Markets as a whole
after big falls in Asia, and also beat the MSCI World Index (down 1.9%).  Year
to  date  it  is practically unchanged (-0.1%).  In July, the worst-performing
market  was  Peru (-3.6% in sterling), still negatively affected by  politics,
whereas Colombia rose by 13% (though the market is still down by 23% YTD)  and
Brazil  was  flat.   Despite this lack of progress, the  Latin  American  bond
markets  have been performing extremely well in recent weeks, and we see  this
as  an  encouraging  indication that international investor  interest  in  the
equity markets may return.

Our  NAV  fell  by 2.0% during the month, underperforming the regional  index.
Asset allocation was positive, but we were hurt by weakness in several of  our
stock  overweights, particularly CTC in Chile, Credicorp in Peru and  Brazil's
TeleNordeste Celular.  Telecoms stocks underperformed generally throughout the
region.  A strong rally in the shares of cyclical/commodity companies that  we
do not own also affected performance.  However, our share price recovered from
its end-June low, rising by 3.2% as the discount narrowed back down to 18.6%.

MEXICO

As  we  reported  in  our  last monthly report, the Mexican  currency  reacted
sharply  to the Fox victory.  It has continued to be extremely strong  and  is
now  back  at  levels  of P9.32 to the dollar from P10 at  the  end  of  June,
supported by higher oil prices, lower than expected inflation (July  CPI  came
in  at  0.4%  or 9.1% on a rolling 12 month basis) and tight monetary  policy.
Short-term  interest rates have recently risen slightly to 15.2%  nominal  (6%
real),  reflecting the Central Bank's tightening stance, but  are  still  well
below  the 17% they reached at the end of June.  Industrial production figures
have  continued  to  be strong.  Our principal concern is  the  growing  trade
deficit; in June, despite oil prices at $30/barrel, the trade balance was $4bn
worse  than  in June 1999 as imports rose by 18% YOY.  Signs of a slowdown  in
the US economy are also being keenly watched for its impact on Mexico.

Telmex  released second quarter earnings figures that were poorly received  by
the  market,  showing  a  drop in profitability in its  core  local  telephony
business despite a thriving cellular franchise.  We are less concerned; it  is
clearly  in  Telmex's  interest to present lower profit  figures  ahead  of  a
potentially  tougher  regulatory regime under  President  Fox.   In  addition,
Telmex's  entry  into  the Brazilian market and series of strategic  alliances
with  major  international players show that it is preparing  itself  for  the
increasing  competition in its home market.  Mexico's leading  bank,  Banacci,
responded to the BBVA takeover of rival Bancomer by using Q2 results to  clean
up  its  own  balance sheet even further, preparing itself  for  a  return  to
lending in 2001.

The  best-performing stocks during the month included miner Grupo  Mexico,  up
38%  in USD after a long period of underperformance following its takeover  of
Asarco  and  weak copper prices.  The company announced plans for a  New  York
listing  and was also boosted by better news on copper prices and inventories.
Retailer  Comercial  Mexicana  rose by 21% on  strong  consumer  spending  and
takeover  speculation.   Conglomerates  Alfa  and  Grupo  Industrial  Saltillo
rallied  after  a long period of underperformance, and Banacci  stock  reacted
well  to  its balance sheet cleanup and to increased optimism on the  economy.
Telmex  and  Carso Global Telecom were both down around 8% in USD,  and  media
group Televisa and retailer Soriana also underperformed.  We used the rally in
the conglomerates to cut our exposure there back to neutral, and instead added
to  stocks  more exposed to domestic consumption where we consider the  medium
term upside to be brighter, such as Kimberly Clark, Femsa and Soriana.  We are
still  slightly underweight in Mexico overall but will be looking  to  add  on
weakness.

BRAZIL

The  Brazilian market was basically flat over the month, falling by  0.04%  in
sterling  terms,  and  therefore outperforming the region  as  a  whole.   The
Brazilian  authorities made two more interest rate cuts in July, so  that  the
overnight rate fell by 100bp over the month to 16.5% from 19% at the start  of
the  year.   Real rates are currently around 9.5%.  The authorities cited  the
ongoing  lack of inflationary pressures and the improved external  environment
as  reasons behind their move, but they are also clearly driven by a desire to
see  the economy return to higher growth.  Despite a higher than expected IPCA
inflation  figure for July, caused mainly by supply-side shocks and government
price increases, we expect the rate cutting cycle to continue.  The effect  of
lower  interest  rates and the more competitive exchange rate can  already  be
seen  in the economy, which grew by 3.8% in the first half of the year, driven
by  the  export sector, particularly commodities and agriculture,  and  strong
industrial  production.  This growth combined with spending cuts is  producing
fiscal  results  well  above  the  IMF targets  for  the  year,  allowing  the
government  some  room  for  targeted spending ahead  of  October's  important
municipal elections.  This week Brazil successfully placed a landmark issue of
US$5.2bn  in  40-year bonds in exchange for more expensive  Brady  debt,  thus
significantly improving its debt profile; it estimates this exchange will save
it  US$1bn  in  debt service over the next 10 years as well as releasing  over
$300m in collateral.  We believe the success of this placement signals renewed
investor confidence in the country's outlook.

As  already mentioned, telecoms stocks were weak throughout the region in July
following a global selloff, and Brazilian cellulars were no exception. Bidding
rules  were announced for the auction of the PCS licences to be sold off  from
December;  these  were  generally interpreted as negative  for  the  incumbent
cellular  operators and likely to cause faster consolidation.   Unibanco,  the
third  largest  private sector bank in Brazil, bought Banco Bandeirantes  from
its  Portuguese owners in an opportunistic transaction which will increase its
deposit  base by a third.  Though the price it paid can be seen  as  a  little
high,  it illustrates Unibanco's intention to strengthen its franchise.  There
was news of further delays in the sale of Banespa, which now looks unlikely to
be  sold  for  another  year.  A small stake in iron  ore  producer  CVRD  was
acquired  by  Billiton  from  George Soros.  The  iron  ore  sector  has  been
surrounded by speculation of further consolidation given the bidding war  over
North,  which had previously expressed interest in smaller Brazilian  producer
Caemi.  This week the Brazilian government also raised US$4bn from a secondary
issue of voting shares in Petrobras, placed both in Brazil and overseas.

The  month's  best performers were leading brewer Brahma, up  24%  in  USD  on
optimism  over  a  recovery in consumption and its even greater  market  power
following  its  merger with rival Antartica; commodity stocks  including  VCP,
Aracruz  and Suzano, following a worldwide trend; and steel stocks  were  also
strong  following  interest rate cuts.  Utilities including Cesp,  Coelba  and
Light  did  well on speculation over their financial restructuring and  future
sale/buyout  of  minorities: we are underweight this sector.  Banks  Itau  and
Unibanco  had a strong month, while Banespa suffered, along with most  of  the
telecoms stocks, although fixed-line provider Tele Norte-Leste outperformed.

During  the  month,  we  added to our overweight in steelmaker  Gerdau,  which
reported  excellent Q2 earnings.  We also slightly increased our  holdings  in
Unibanco and TeleNordeste Celular, while trimming our exposure to Brahma after
its  strong  rally.   We  remain overweight Brazil and very  positive  on  the
prospects for the market.

CHILE

The  Chilean market fell by 3.4% in sterling terms during the month.  Much  of
this  fall  can be attributed to further weakness in the Chilean  peso,  which
dropped  by  3%  against the dollar during the month, and  to  poor  sentiment
following severe floods in June.  The economy has shown a continuing  recovery
with  GDP  growing 7.4% year on year in May and rising by 6.1% for  the  first
five  months of the year.  This has been reflected in rising imports; however,
inflation  has remained benign, unemployment has increased, consumer  spending
is  sluggish  and  so  the Central Bank has not yet felt  the  need  to  raise
interest rates.  The recent rise in copper prices will directly benefit Chile,
where copper is still the most important export commodity.

The  weakest stock in the market during July was benchmark CTC, which fell  by
17% in USD.  We still believe that CTC is likely to be taken out by its parent
Telefonica,  particularly  given  the  recent  resignation  of  Chairman  Juan
Villalonga,  as CTC is now the one piece which does not fit into  Telefonica's
Latin  American strategy.  We made no changes to our Chilean portfolio  during
the month.

ARGENTINA

The  Argentine market fell 3.4% in sterling terms in July.  Economic news  was
mostly  negative,  with a month-on-month decline in industrial  production  in
June,  a  big  fall in auto sales, rising unemployment (15.4%  in  May,  above
expectations  and  last October's figure of 13.8%), and  poor  tax  collection
figures for July highlighting the deceleration in economic activity.  The only
bright  spot  has  been export performance, with the trade  balance  improving
significantly  due  to better demand from Brazil and higher commodity  prices,
especially  oil.   Capital  goods imports have lagged.   Shares  in  Banco  de
Galicia  rose  by  19%  during  the month  in  USD  on  the  approval  of  the
controversial  share swap into the holding company, Grupo Financiero  Galicia.
The  energy stocks underperformed.  We made no changes to our portfolio during
the  month  and  remain strongly underweight in the belief that the  full-year
fiscal targets will remain out of reach and that the weak economy will produce
only subdued earnings growth.

ANDEAN MARKETS

Colombia  was the best performing market in the region last month,  rising  by
13%  in  sterling  terms  after peace talks with the  guerrilla  group,  FARC,
resumed  and  the main political parties adopted a more constructive  approach
after recent disputes.  Industrial production figures showed a healthy rise in
May  and  year to date (up 10%), and exports are being boosted by  strong  oil
prices  and  a  weaker peso.  Our holding in brewer Bavaria  outperformed  the
market's rise.

Peru  fell  by  3.6% in sterling terms as politics continued to  dominate  the
headlines: President Fujimori was sworn in amidst mass protests in  Lima,  and
did  not  make any convincing new policy announcements, though he did  present
some  changes  to his Cabinet team.  Although May's GDP growth came  in  at  a
stronger  than expected 6.6%, we expect growth to be slower in H2.   Inflation
remains  subdued  despite  the higher cost of oil  imports.   Our  holding  in
Credicorp  underperformed  the market, falling by  12%  in  USD  on  fears  of
deteriorating  asset  quality.   Its  second  quarter  earnings  release   was
disappointing.  We have been reducing our weight in the stock on a slower than
expected  recovery, but we believe that the current price does not  adequately
reflect its franchise value.

Venezuela  fell  by 0.6% in sterling terms, outperforming the  regional  index
ahead of the polls on July 28 which saw Hugo Chavez re-elected as President by
a  wide  margin.  Chavez had earlier announced a 20% increase in  the  minimum
wage,  which  has  begun to feed through to inflation figures.   Policies  are
unlikely  to change in the near term.  There have been some gradual  signs  of
recovery in the economy, but the biggest positive continues to be the strength
of  the oil price.  Our holding in CANTV underperformed during the month, down
nearly 8% in USD.



NET ASSET VALUE                                              
                                                    Fully diluted
                               31/07/00  30/06/00 31/07/00  30/06/00
                                 96.9p     98.9p    97.5p     99.1p

MID-MARKET SHARE PRICE               31/07/00   30/06/00
Ordinary Shares                       79.75p     77.25p
Warrants                              22.00p     22.25p


                                       Market exposure
                                     31/07/00   30/06/00
EQUITIES                                                 
                                                         
Argentina                               1.4           1.4
                                                         
Brazil                                 47.6          46.3
                                                         
Chile                                   9.9          10.5
                                                         
Colombia                                0.4           0.4
                                                         
Mexico                                 36.4          36.4
                                                         
Peru                                    1.3           1.4
                                                         
Venezuela                               1.5           1.6
                                                         
TOTAL PORTFOLIO                        98.5          98.0
                                                         
Net Current Assets                      1.5           2.0
                                     ------       -------
TOTAL                                 100.0         100.0
                                     ------       -------
                                          
Based on total assets less current liabilities of £51.6 million (£52.7
million).
                                                         
GEARING                                                  
Borrowings and Gearing at            31/07/00   30/06/00
                                      £000's     £000's
                                        NIL           NIL
                                       ====          ====
                                                         

LARGEST HOLDINGS (market value £45.1 million equal to 88.6% of total
portfolio)
                                                      
                                                         % of
                            Country          £000's   portfolio
Telmex                       Mexico          7,273       14.3
Tele Norte Leste             Brazil          3,361        6.6
Petrobras                    Brazil          2,583        5.1
Unibanco                     Brazil          2,499        4.9
Banco Itau                   Brazil          2,414        4.8
Vale do Rio Doce             Brazil          2,339        4.6
Brasil Telecom               Brazil          2,173        4.3
Gerdau                       Brazil          2,100        4.1
Femsa                        Mexico          2,046        4.0
Brahma                       Brazil          2,035        4.0
Telecom de Chile             Chile           1,663        3.3
Grupo Televisa               Mexico          1,566        3.1
Telenordeste Celular         Brazil          1,496        2.9
Banamex                      Mexico          1,379        2.7
Grupo Modelo                 Mexico          1,291        2.5
Cemex                        Mexico          1,072        2.1
Soriana                      Mexico          1,007        2.0
Embratel                     Brazil          1,005        2.0
Telesp Celular               Brazil            944        1.9
Kimberly-Clark               Mexico            923        1.8
Electrobras                  Brazil            840        1.7
Enersis                      Chile             779        1.5
Sider Nacional               Brazil            771        1.5
CANTV                        Venezuela         769        1.5
PC Holdings                  Argentina         717        1.4
                                                                
FINANCIAL CALENDAR                                              
Half year                                         31 August 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 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.co.uk.

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.