Monthly Report

Deutsche Latin American Cos Tst PLC
15 August 2003


Deutsche Latin American Companies Trust PLC


                       REPORT FOR THE MONTH OF JULY 2003

SUMMARY


The Latin American benchmark was up 7.5% in July, outperforming the S&P and Dow
Jones Indices but underperforming the Nasdaq and some of their emerging market
peers. Year to date Latin America continues to outperform both its emerging
market peers and the U.S. markets. Within Latin America, Chile, Brazil and
Mexico were the strongest performers in July, up 10.5%, 8.1%, and 7.1%
respectively. Argentina fell for the month, down 2.4% in GBP. By sector, July
performance was led by materials and consumer discretionary with consumer
staples declining. Most Latin American currencies depreciated against sterling
for the month with the exception of the Mexican and Chilean pesos which were up
1.3 and 1.7% respectively. Although the Brazilian real and Argentine Peso were
off against sterling, they remain the strongest performers to date.

A large number of Latin American companies released second quarter earnings in
July. The reporting season is nearly over in Mexico and most of the companies
owned in the portfolio posted strong results, with the exception of Telmex. In
Brazil, results are beginning to come in and have generally been in line or
slightly weaker than expectations given the continued softness in the economy.

The Trust was slightly behind the index for the month, with the NAV up 6.2%.
Again, the country allocation was positive however stock selection, particularly
in Brazil was off for the month. Some of the biggest detractors included the
Brazilian wireline companies and Ambev, based on weaker results, and Telmex in
Mexico. For the year to date, the NAV for the Trust is up 24.7% versus the index
of 27.4%.

Brazil

The Brazilian MSCI rose over 8% for the month despite the currency weakening
1.5% against sterling. News of continued progress on the reform front, a cut in
the Copom rate and moderate inflation figures helped spur the market ahead. The
government managed to have the Social Security and Bankruptcy Law reforms
approved in a special committee for the chamber of deputies and the senate. We
now think it may be possible to have this reform passed in Congress by the end
of October or November. Industrial production figures remain weak, with May
numbers coming in only slightly ahead of a year ago. We do not expect any
substantial recovery until at least the fourth quarter this year, as consistent
cuts in the interest rate kick in to improve consumer and business sentiment.
Retail sales have remained sluggish, a reflection of the decline in real income,
deterioration of the labour market and lack of consumer credit. Finally,
President Lula's popularity slipped in July however he still commands a
favourable rating by 78% of those polled.



Mexico


The Mexican market gained over 7% in sterling, helped by better U.S. economic
data and supportive global markets, despite the disappointing congressional
election results earlier in the month. The currency strengthened against
sterling, as domestic interest rates stayed low and economic activity data
remains sluggish. The Central Bank reduced its 2003 GDP estimate to 2%, the
second time this year. The trade deficit continues to improve driven primarily
by higher oil exports, as the manufacturing exports continue to be lacklustre.
May retail sales were up slightly, the fifth consecutive month of rises however
the fall in industrial production figures (again) signals that economic activity
remains weak. After the moderately successful election results by the PRI, they
appear more willing to move forward on fiscal reform. President Fox's PAN was
the clear loser in the July 6 ballot, which ended up with fewer deputies than in
the previous Congress. The PRD also came out ahead, doubling its number of
deputies. Ongoing corporate results, economic activity data (both in the U.S.
and in Mexico) and any structural reform progress remain the key issues for
August.

On the corporate side, while Telmex's bottom line results were weaker than
expected, they continue to post strong EBITDA margins signalling a commitment to
profitability. America Movil results surprised on the upside with very strong
top line growth. Other large cap stocks which came in with better than expected
news included Televisa, Bancomer, Cemex and Walmex, all of which are owned in
the portfolio.

Chile


The Chilean MSCI greatly outperformed the regional index for the month, up 10.5%
in sterling terms. The portfolio continues to be underweight the index, at 3.5%
versus 10.3% however our stock selection was positive for the month with solid
gains by the names held. The Chilean peso strengthened again for the month, up
1.8 as copper prices rose and domestic economic activity was relatively robust.
The Central Bank held rates unchanged as inflation remained tame. We continue to
search for selective investment opportunities in this market of low liquidity,
however remain mindful of balance sheet issues for selective companies
(particularly utilities).

Argentina

The Argentine MSCI fell for the month, down 2.4% as the deceleration of the
economy continues to be felt. In addition, the effects of the capital controls
imposed in June also contributed to the market's weakness. The currency declined
versus sterling and domestic interest rates stayed relatively low. Discussions
began with the IMF on a new program. Corporate results and the ongoing IMF
negotiations will dominate headlines for August. We remain uninvested in this
market at present.

Venezuela /Peru

The Venezuelan market underperformed the index on concerns over potential
changes in the foreign exchange regime. The government made some economic
progress, with the announced debt swap proposals, but little political progress
with no date for the referendum on Chavez's regime. We have no exposure to this
market.

The Peruvian market rose nearly 9% in sterling in July as positive commodity
prices offset ongoing political noise, with changes at the Central Bank and
Ministry of Finance. President Toledo's popularity remains weak and the economy
is now showing signs of deceleration. Despite this, the portfolio's sole holding
in Peru, the gold company Buenaventura, was a stand out contributor to
performance for the month.




NET ASSET VALUE
                                                                                                   Fully diluted
                                                               31/07/03        30/06/03        31/07/03        30/06/03

                                                                  70.7p           66.6p           76.9p           73.7p

MID-MARKET SHARE PRICE                                                         31/07/03        30/06/03
Ordinary Shares                                                                  58.50p          55.75p
Warrants                                                                         10.00p           9.75p



NAV based on total assets less current liabilities of £33.8 million (£31.8 million).

                                                                                                Market exposure
                                                                                         31/07/03               30/06/03
                                                                                                %                      %
EQUITIES

Brazil                                                                                       47.4                   45.8

Chile                                                                                         3.5                    3.5

Mexico                                                                                       47.7                   47.8

Peru                                                                                          2.0                    1.8


TOTAL PORTFOLIO                                                                             100.6                   98.9


Net Current Assets                                                                          (0.6)                    1.1
                                                                                         --------               --------
TOTAL                                                                                       100.0                  100.0
                                                                                         --------               --------
Based on total assets of £36.9 million (£34.9 million).

GEARING

Gearing at                                                                               31/07/03               30/06/03
                                                                                             9.2%                   9.5%
 
                                                                                            ====                   ====
LARGEST HOLDINGS (market value £36.8 million equal to 99.1% of total          
portfolio)                                                                    

                                           Country            £000's        % of      
                                                                       portfolio 

  Petrobras                                Brazil              4,702        12.7

  Wal-Mart de Mexico                       Mexico              3,388         9.1

  Telmex                                   Mexico              3,321         8.9

  Ambev                                    Brazil              2,152         5.8

  Grupo Televisa                           Mexico              2,025         5.5

  Vale do Rio Doce                         Brazil              2,003         5.4

  America Movil                            Mexico              2,001         5.4

  G.F BBVA-Bancomer                        Mexico              1,963         5.3

  Cemex                                    Mexico              1,878         5.1

  Banco Itau                               Brazil              1,876         5.1

  Tele Norte Leste                         Brazil              1,620         4.3

  Brasil Telecom                           Brazil              1,246         3.3

  Femsa                                    Mexico              1,103         3.0

  Bco Bradesco                             Brazil                929         2.4

  Grupo Modelo                             Mexico                844         2.3

  Gerdau                                   Brazil                836         2.3

  Telecom de Chile                         Chile                 788         2.1

  Coca-Cola Femsa                          Mexico                766         2.1

  Minas Buenaventura                       Peru                  724         2.0

  Pao de Acucar                            Brazil                654         1.8

  Sider Nacional                           Brazil                593         1.6

  Bco Santander                            Chile                 494         1.3

  Telesp Celular                           Brazil                328         0.9

  Kimberly-Clark de Mexico                 Mexico                310         0.8

  Aracruz Celulose                         Brazil                245         0.6

 

 Financial Calendar                                                            

  Half-year                                          31 August 2003    



For further information, contact Mark Pope at Deutsche Investment Trust Managers
Limited on 020-7545-0520.


For additional copies, changes of address or details of our Private Investors'
Plan, low cost ISA and Dividend Reinvestment Plan (a plan 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 Investment Trust Managers website located at
www.deutsche-its.co.uk.


Issued by Deutsche Latin American Companies Trust PLC and approved by Deutsche
Investment Trust Managers Limited, authorised and regulated by the Financial
Services Authority and manager of Deutsche Latin American Companies Trust PLC.
Investors should be aware that past performance is not necessarily a guide to
future returns, the price of shares and the income from them may 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.



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