<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant / /
Filed by a party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
/ / Definitive Proxy Statement
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
THE LATIN AMERICA INVESTMENT FUND, INC.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/X/ No fee required
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
and 0-11
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
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(2) Form, Schedule or Registration Statement No.:
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(3) Filing Party:
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(4) Date Filed:
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<PAGE>
THE LATIN AMERICA INVESTMENT FUND
- -------------------------------------------------------------------------------
CREDIT SUISSE ASSET MANAGEMENT
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
FUND OBJECTIVES
THE LATIN AMERICA INVESTMENT FUND, INC. (NYSE: LAM) IS A NON DIVERSIFIED,
CLOSED-END MANAGEMENT INVESTMENT COMPANY.
- - The Fund's investment objective is long term capital appreciation
- - The Fund must have at least 65% of its total assets in Brazil, Chile, and
Mexico
- - The Fund may invest up to 35% of its total assets in debt securities of
which no more than 30% may be invested in external debt obligations issued
or guaranteed by Latin American governments or governmental entities
(sovereign debt)
- - No more than 25% of the Fund's assets will be invested in private equity
securities
2
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
NAV/MARKET PRICE COMPARISON*
Date of Inception: 8/1/90 TICKER:LAM
COMPARATIVE DISCOUNT/PREMIUM REPORT
[GRAPH]
In the printed version of the document, a line graph appears
which depicts the following plot points:
<TABLE>
<CAPTION>
Date Discount(-)/Premium %
<S> <C>
7/31/90 3.56%
8/3/90 -4.55%
8/10/90 -14.88%
8/17/90 -16.73%
8/24/90 -21.75%
8/31/90 -19.11%
9/7/90 -21.52%
9/14/90 -20.68%
9/21/90 -25.74%
9/28/90 -28.07%
10/5/90 -23.66%
10/12/90 -26.42%
10/19/90 -18.89%
10/26/90 -27.90%
10/31/90 -26.75%
11/2/90 -22.99%
11/9/90 -26.31%
11/16/90 -22.28%
11/23/90 -21.71%
11/30/90 -24.24%
12/7/90 -20.49%
12/14/90 -15.92%
12/21/90 -21.04%
12/28/90 -23.32%
12/31/90 -21.88%
1/4/91 -20.08%
1/11/91 -18.97%
1/18/91 -15.45%
1/25/91 -20.55%
1/31/91 -17.18%
2/1/91 -16.15%
2/8/91 -14.53%
2/15/91 -10.77%
2/22/91 -12.52%
2/28/91 -18.06%
3/1/91 -19.99%
3/8/91 -14.14%
3/15/91 -13.18%
3/22/91 -13.23%
3/29/91 -16.09%
4/5/91 -15.29%
4/12/91 -9.84%
4/19/91 -10.90%
4/26/91 -9.75%
4/30/91 -11.81%
5/3/91 -12.30%
5/10/91 -14.99%
5/17/91 -12.20%
5/24/91 -11.37%
5/31/91 -6.79%
6/7/91 -15.46%
6/14/91 -13.75%
6/21/91 -14.18%
6/28/91 -15.63%
7/5/91 -12.46%
7/12/91 -5.80%
7/19/91 -6.52%
7/26/91 -7.27%
7/31/91 -2.31%
8 /2/91 -2.25%
8/9/91 -3.39%
8/16/91 -8.82%
8/23/91 -8.58%
8/30/91 11.05%
9/6/91 0.82%
9/13/91 4.72%
9/20/91 0.77%
9/27/91 4.05%
9/30/91 0.81%
10/4/91 -3.28%
10/11/91 -0.30%
10/18/91 7.80%
10/25/91 6.19%
10/31/91 11.16%
11/1/91 8.43%
11/8/91 5.09%
11/15/91 -5.50%
11/22/91 -4.28%
11/29/91 -10.88%
12/6/91 -4.28%
12/13/91 -3.16%
12/20/91 4.51%
12/27/91 1.67%
12/31/91 1.73%
1/3/92 4.21%
1/10/92 5.76%
1/17/92 0.43%
1/24/92 -0.67%
1/31/92 -0.29%
2/7/92 -1.36%
2/14/92 -6.41%
2/21/92 -0.85%
2/28/92 6.62%
3/6/92 0.97%
3/13/92 -1.29%
3/20/92 5.00%
3/27/92 5.77%
3/31/92 3.55%
4/3/92 -2.55%
4/10/92 -4.93%
4/17/92 -7.76%
4/24/92 -5.27%
4/30/92 -3.43%
5/1/92 -4.17%
5/8/92 -4.82%
5/15/92 -0.21%
5/22/92 0.78%
5/29/92 -4.71%
6/5/92 -7.98%
6/12/92 -10.71%
6/19/92 -13.08%
6/26/92 -11.47%
6/30/92 -8.01%
7/2/92 -7.80%
7/10/92 -12.71%
7/17/92 -11.90%
7/24/92 -6.27%
7/31/92 -3.85%
8/7/92 -0.38%
8/14/92 -0.30%
8/21/92 2.25%
8/28/92 2.65%
8/31/92 4.08%
9/4/92 3.17%
9/11/92 -1.22%
9/18/92 -5.39%
9/25/92 -6.71%
9/30/92 -11.45%
10/9/92 -3.85%
10/16/92 -0.70%
10/23/92 -3.56%
10/30/92 -1.17%
11/6/92 5.13%
11/13/92 0.21%
11/20/92 -6.57%
11/27/92 -7.27%
11/30/92 -8.41%
12/4/92 -9.30%
12/11/92 -7.07%
12/18/92 -5.30%
12/24/92 -5.30%
12/31/92 -3.88%
1/8/93 -6.19%
1/15/93 -7.30%
1/22/93 -3.59%
1/29/93 14.04%
2/5/93 12.76%
2/12/93 9.45%
2/19/93 9.97%
2/26/93 11.04%
3/5/93 15.52%
3/12/93 10.58%
3/19/93 5.26%
3/26/93 -4.09%
3/31/93 -4.99%
4/2/93 -1.72%
4/8/93 2.63%
4/16/93 0.81%
4/23/93 -0.55%
4/30/93 0.29%
5/7/93 2.90%
5/14/93 1.18%
5/21/93 -2.61%
5/28/93 -6.57%
6/4/93 -9.64%
6/11/93 -7.50%
6/18/93 -7.20%
6/25/93 -7.01%
6/30/93 -4.62%
7/2/93 -3.94%
7/9/93 -4.47%
7/16/93 5.47%
7/23/93 3.39%
7/30/93 3.71%
8/6/93 9.81%
8/13/93 9.40%
8/20/93 0.12%
8/27/93 0.28%
8/31/93 1.00%
9/3/93 4.74%
9/10/93 1.44%
9/17/93 3.73%
9/24/93 0.68%
9/30/93 -3.76%
10/1/93 -5.00%
10/8/93 -5.52%
10/15/93 -4.09%
10/22/93 7.84%
10/29/93 4.62%
11/5/93 -0.51%
11/12/93 2.65%
11/19/93 8.61%
11/26/93 8.25%
11/30/93 8.29%
12/3/93 11.29%
12/10/93 19.07%
12/17/93 14.44%
12/23/93 14.74%
12/31/93 22.43%
1/7/94 13.34%
1/14/94 13.17%
1/21/94 16.92%
1/28/94 18.84%
1/31/94 15.34%
2/4/94 17.95%
2/11/94 12.21%
2/18/94 16.36%
2/25/94 3.36%
2/28/94 2.60%
3/3/94 7.40%
3/10/94 1.68%
3/17/94 -1.32%
3/25/94 -1.60%
3/31/94 -8.03%
4/8/94 -2.88%
4/15/94 -0.58%
4/22/94 4.43%
4/29/94 2.05%
5/6/94 -6.18%
5/13/94 -5.90%
5/20/94 -4.27%
5/27/94 -1.06%
5/31/94 -1.87%
6/3/94 -3.29%
6/10/94 -1.09%
6/17/94 -4.64%
6/24/94 -7.64%
6/30/94 -8.29%
7/1/94 -9.16%
7/8/94 -7.12%
7/15/94 -6.49%
7/22/94 -3.01%
7/29/94 -4.47%
8/5/94 -5.17%
8/12/94 -1.46%
8/19/94 -3.30%
8/26/94 -4.16%
8/31/94 -5.08%
9/2/94 -15.65%
9/9/94 -5.72%
9/16/94 -4.09%
9/23/94 -0.22%
9/30/94 -6.75%
10/6/94 -10.77%
10/14/94 -11.90%
10/21/94 -10.54%
10/28/94 -16.86%
10/31/94 -13.01%
11/4/94 -5.57%
11/11/94 -10.02%
11/18/94 -13.70%
11/25/94 -14.31%
11/30/94 -13.90%
12/2/94 -12.36%
12/9/94 -15.20%
12/16/94 -9.09%
12/23/94 -6.03%
12/30/94 -7.09%
1/6/95 -2.47%
1/13/95 1.51%
1/20/95 0.39%
1/27/95 0.40%
1/31/95 3.33%
2/3/95 -1.17%
2/10/95 -4.58%
2/17/95 -3.78%
2/24/95 -8.99%
2/28/95 -6.43%
3/3/95 -6.63%
3/10/95 1.38%
3/17/95 -4.05%
3/24/95 -7.96%
3/31/95 0.17%
4/7/95 -1.07%
4/14/95 -4.03%
4/21/95 -4.14%
4/28/95 0.33%
5/5/95 -5.38%
5/12/95 -7.38%
5/19/95 -6.30%
5/26/95 -6.16%
5/31/95 -7.01%
6/2/95 -8.15%
6/9/95 -11.77%
6/16/95 -10.16%
6/23/95 -14.63%
6/30/95 -10.61%
7/7/95 0.43%
7/14/95 -5.72%
7/21/95 -7.56%
7/28/95 -6.56%
7/31/95 -6.72%
8/4/95 -9.51%
8/11/95 -12.52%
8/18/95 -11.45%
8/25/95 -12.39%
8/31/95 -13.27%
9/8/95 -13.03%
9/15/95 -14.96%
9/22/95 -13.56%
9/29/95 -16.11%
10/6/95 -14.11%
10/13/95 -15.76%
10/20/95 -16.95%
10/27/95 -17.41%
10/31/95 -12.31%
11/3/95 -14.55%
11/10/95 -15.27%
11/17/95 -14.51%
11/24/95 -11.81%
11/30/95 -9.43%
12/1/95 -22.67%
12/8/95 -9.37%
12/15/95 -12.00%
12/22/95 -13.01%
12/29/95 -13.69%
1/5/96 -4.44%
1/12/96 -1.54%
1/19/96 -1.69%
1/26/96 -0.58%
1/31/96 -1.51%
2/2/96 -4.00%
2/9/96 -4.66%
2/16/96 -3.53%
2/23/96 -6.10%
2/29/96 -8.47%
3/1/96 -8.30%
3/8/96 -8.73%
3/15/96 -8.09%
3/22/96 -8.94%
3/29/96 -8.99%
4/5/96 -9.93%
4/12/96 -9.59%
4/19/96 -9.57%
4/26/96 -12.18%
4/30/96 -12.88%
5/3/96 -15.83%
5/10/96 -12.99%
5/17/96 -10.44%
5/24/96 -8.29%
5/31/96 -9.24%
6/7/96 -11.32%
6/14/96 -9.19%
6/21/96 -13.35%
6/30/96 -15.02%
7/5/96 -15.33%
7/12/96 -17.46%
7/19/96 -17.93%
7/26/96 -17.84%
7/31/96 -18.14%
8/2/96 -18.28%
8/9/96 -16.15%
8/16/96 -14.89%
8/23/96 -16.07%
8/31/96 -15.08%
9/6/96 -14.45%
9/13/96 -12.73%
9/20/96 -15.56%
9/27/96 -14.82%
9/30/96 -14.26%
10/4/96 -15.78%
10/11/96 -14.08%
10/18/96 -18.12%
10/25/96 -16.14%
10/31/96 -17.20%
11/1/96 -16.36%
11/8/96 -17.63%
11/15/96 -16.80%
11/22/96 -16.36%
11/30/96 -16.67%
12/6/96 -19.78%
12/13/96 -18.60%
12/20/96 -18.52%
12/27/96 -17.42%
12/31/96 -17.41%
1/3/97 -16.58%
1/10/97 -14.27%
1/17/97 -14.07%
1/24/97 -15.97%
1/31/97 -14.03%
2/7/97 -16.02%
2/14/97 -13.24%
2/21/97 -12.46%
2/28/97 -14.96%
3/7/97 -14.61%
3/14/97 -15.15%
3/21/97 -17.39%
3/27/97 -16.87%
3/31/97 -15.89%
4/4/97 -17.42%
4/11/97 -16.71%
4/18/97 -15.94%
4/25/97 -16.63%
4/30/97 -16.82%
5/2/97 -17.37%
5/9/97 -16.71%
5/16/97 -15.29%
5/23/97 -15.46%
5/30/97 -16.28%
6/6/97 -17.31%
6/13/97 -19.09%
6/20/97 -17.21%
6/27/97 -14.93%
6/30/97 -15.51%
7/3/97 -16.38%
7/11/97 -17.22%
7/18/97 -15.67%
7/25/97 -16.77%
7/31/97 -17.61%
8/1/97 -16.88%
8/8/97 -18.51%
8/15/97 -17.32%
8/22/97 -20.41%
8/29/97 -20.31%
9/5/97 -18.52%
9/12/97 -18.90%
9/19/97 -20.16%
9/26/97 -18.98%
9/30/97 -19.92%
10/3/97 -20.26%
10/10/97 -20.57%
10/17/97 -20.86%
10/24/97 -23.93%
10/31/97 -22.36%
11/7/97 -21.34%
11/14/97 -20.21%
11/21/97 -23.65%
11/28/97 -22.93%
12/5/97 -19.10%
12/12/97 -20.45%
12/19/97 -20.78%
12/26/97 -19.25%
12/31/97 -21.40%
1/2/98 -21.41%
1/9/98 -20.54%
1/16/98 -18.97%
1/23/98 -19.35%
1/30/98 -16.64%
2/6/98 -15.02%
2/13/98 -17.62%
2/20/98 -17.43%
2/27/98 -17.98%
3/6/98 -18.43%
3/13/98 -19.36%
3/20/98 -18.89%
3/27/98 -18.42%
3/31/98 -18.84%
4/3/98 -20.39%
4/10/98 -20.84%
4/17/98 -21.27%
4/24/98 -19.51%
4/30/98 -20.00%
5/1/98 -20.04%
5/8/98 -19.48%
5/15/98 -20.39%
5/22/98 -20.71%
5/29/98 -22.82%
6/5/98 -22.66%
6/12/98 -24.22%
6/19/98 -23.32%
6/26/98 -22.19%
6/30/98 -21.98%
7/3/98 -21.92%
7/10/98 -22.64%
7/17/98 -21.97%
7/24/98 -22.84%
7/31/98 -22.85%
8/7/98 -22.61%
8/14/98 -26.64%
8/21/98 -23.25%
8/28/98 -27.50%
8/31/98 -28.62%
9/4/98 -30.69%
9/11/98 -29.02%
9/18/98 -31.15%
9/25/98 -31.94%
9/30/98 -29.22%
10/2/98 -29.09%
10/9/98 -29.40%
10/16/98 -28.21%
10/23/98 -26.25%
10/30/98 -25.67%
11/6/98 -24.28%
11/13/98 -22.19%
11/20/98 -22.96%
11/27/98 -23.84%
11/30/98 -23.60%
12/4/98 -23.38%
12/11/98 -26.22%
12/18/98 -25.91%
12/31/98 -27.65%
1/8/99 -26.02%
1/15/99 -25.14%
1/22/99 -24.98%
1/29/99 -26.47%
2/5/99 -21.95%
2/12/99 -23.13%
2/19/99 -24.43%
2/26/99 -23.21%
3/5/99 -24.87%
3/12/99 -22.07%
3/19/99 -21.56%
3/26/99 -24.09%
</TABLE>
PERFORMANCE RECORD: (US$)
<TABLE>
<CAPTION>
1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NAV(1) 17.09 105.78 8.31 54.71 3.23 -14.24 13.09 13.71 -33.33
Market Price(2) 17.60 122.45 9.17 60.34 5.51 -10.61 15.13 10.99 -32.39
MSCI Latin(3) -32.85 105.78 8.31 54.71 3.23 -14.24 13.09 13.71 -33.33
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND DISTRIBUTION:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(PER SHARE US$) 0.2647 3.469 2.44 8.87 4.40 0.19 0.23 2.63 0.45
</TABLE>
*Source: Lipper Analytical Services
1 - Total return based on NAV and assuming the reinvestment of dividends and
distributions
2 - Total return based on Market Price and assuming the reinvestment of
dividends and distributions
3 - Morgan Stanley Capital Latin Index
3
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
COMPARATIVE PERFORMANCE REPORT*
<TABLE>
<CAPTION>
YEAR YEAR YEAR FOURTH
INCEPTION ENDED ENDED ENDED QUARTER
DATE 1996 1997 6/20/05 12/31/98
--------- ------ ------ -------- --------
<S> <C> <C> <C> <C> <C>
Latin America Investment Fund, Inc. 8/01/90 13.13% 13.71% -33.33% 10.87%
Latin America Discovery Fund 6/23/92 46.38% 42.04% -43.62% 10.35%
Morgan Grenfell Latin America (a) 3/31/94 27.80% 18.12% -37.78% 6.31%
Scudder Latin America Inv Trust (a) 6/03/94 27.86% 31.72% -33.84% 4.40%
MSCI Emerging Markets Latin America Index 22.21% 31.64% -35.11% 7.08%
</TABLE>
Source: Lipper Analytical Services
(a) This Fund is not registered under the Investment Company Act of 1940
1998 PERFORMANCE IN ABSOLUTE TERMS WAS AWFUL. IN RELATIVE TERMS, LAM
OUTPERFORMED.
- - 1998 was a torrid time for the Latin markets
- - The strategy of focusing on the larger stocks helped only marginally as
they were sold to provide liquidity
- - Increasing the exposure to bonds to the maximum allowed proved to be a good
move
- - With the benefit of hindsight, more cash would have been the best strategy
4
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
CURRENT STRUCTURE
COUNTRY ALLOCATION
[CHART]
In the printed version of the document, a pie chart appears which depicts the
following percentages:
<TABLE>
<CAPTION>
Allocation
Country (% of Total Portfolio+)
<S> <C>
Argentina 19%
Brazil 22%
Chile 7%
Colombia 2%
Mexico 34%
Peru 4%
Venezuela 7%
Other* 5%
</TABLE>
*Other includes Jamaica, Latin America, Panama, Global, and Costa Rica
**A list of portfolio holdings for the preceding 12 months is available upon
request.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
(As of 2/28/99)
Name of Issuer Country of Issuer % of Total Portfolio+
<S> <C> <C>
Republic of Argentina Argentina 9.4%
United Mexican States Mexico 7.5%
Telefonos de Mexico, S.A. de C.V. Mexico 7.3%
Telecomunicacoes Brasileiras S.A. Brazil 7.3%
Republic of Venezuela Venezuela 6.3%
Federal Republic of Brazil Brazil 5.7%
Camuzzi Argentina S.A. Argentina 4.0%
Cifra S.A. de C.V. Mexico 3.3%
Cementos Mexicanos S.A. Mexico 3.1%
YPFSociedad Anonima Argentina 3.0%
</TABLE>
+ excluding cash
5
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
MANAGEMENT STYLE
- - Equity component of the Fund comprises two elements
-publicly listed equities (typically range 50-80%)
-privately held (typically range 0-10%)
- - Debt component managed independently by SBAM
-typically ranges from 5-35%
- - Main emphasis of equity investments in "core" blue chip positions
- - Use lower volatility of bonds (and cash) component to reduce overall Fund
volatility
- - Opportunistic switching between bonds and equities
6
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
RECENT DEVELOPMENTS IN CONTEXT
LATIN AMERICA STOCK PRICE PERFORMANCE
LTM % CHANGE 1991-1998
[GRAPH]
In the printed version of the document, a line graph appears
which depicts the following plot points:
% change
<TABLE>
<CAPTION>
Date % Change
<S> <C>
6-Sep-91 104.29
13-Sep-91 117.02
20-Sep-91 114.28
27-Sep-91 117.67
4-Oct-91 119.27
11-Oct-91 137.07
18-Oct-91 139.89
25-Oct-91 131.02
1-Nov-91 131.77
8-Nov-91 125.75
15-Nov-91 120.09
22-Nov-91 106.07
29-Nov-91 112.07
6-Dec-91 109.23
13-Dec-91 114.61
20-Dec-91 125.53
27-Dec-91 139.37
3-Jan-92 150.66
10-Jan-92 169.66
17-Jan-92 163.72
24-Jan-92 173.92
31-Jan-92 150.5
7-Feb-92 131.66
14-Feb-92 125.95
21-Feb-92 143.93
28-Feb-92 138.4
6-Mar-92 133.5
13-Mar-92 133.65
20-Mar-92 128.73
27-Mar-92 122.61
3-Apr-92 115.3
10-Apr-92 118.34
16-Apr-92 116.85
24-Apr-92 116.22
1-May-92 108.4
8-May-92 100.29
15-May-92 97.24
22-May-92 85.43
29-May-92 76.52
5-Jun-92 72.07
12-Jun-92 68.51
19-Jun-92 56.06
26-Jun-92 49.04
2-Jul-92 45.44
10-Jul-92 42.04
17-Jul-92 44.12
24-Jul-92 31.93
31-Jul-92 30.98
7-Aug-92 33.1
14-Aug-92 25.6
21-Aug-92 15.93
28-Aug-92 17.09
4-Sep-92 12.29
11-Sep-92 5.32
18-Sep-92 5.21
25-Sep-92 9.42
2-Oct-92 10.25
9-Oct-92 4.49
16-Oct-92 1.92
23-Oct-92 8.94
30-Oct-92 13.13
6-Nov-92 12.4
13-Nov-92 9.82
20-Nov-92 17.98
27-Nov-92 20.12
4-Dec-92 19.14
11-Dec-92 19.84
18-Dec-92 15.09
24-Dec-92 12.83
31-Dec-92 6.26
8-Jan-93 8
15-Jan-93 6.33
22-Jan-93 -2
29-Jan-93 -4.77
5-Feb-93 -2.85
12-Feb-93 -5.34
19-Feb-93 -10.54
26-Feb-93 -12.63
5-Mar-93 -13.12
12-Mar-93 -11.52
19-Mar-93 -11.84
26-Mar-93 -12
2-Apr-93 -14.52
8-Apr-93 -15.76
16-Apr-93 -16.43
23-Apr-93 -16.17
30-Apr-93 -15.94
7-May-93 -17.95
14-May-93 -20.17
21-May-93 -15.34
28-May-93 -15.75
4-Jun-93 -12.1
11-Jun-93 8.58
18-Jun-93 1.11
25-Jun-93 9.14
2-Jul-93 6.34
9-Jul-93 8.83
16-Jul-93 3.01
23-Jul-93 13.7
30-Jul-93 11.64
6-Aug-93 11.94
13-Aug-93 19.1
20-Aug-93 32.4
27-Aug-93 29.71
3-Sep-93 35.93
10-Sep-93 40.18
17-Sep-93 40.09
24-Sep-93 37.77
1-Oct-93 35.96
8-Oct-93 42.62
15-Oct-93 49.92
22-Oct-93 38.71
29-Oct-93 33.15
5-Nov-93 33.6
12-Nov-93 43.17
19-Nov-93 49.13
26-Nov-93 46.43
3-Dec-93 45.4
10-Dec-93 45.28
17-Dec-93 47.15
23-Dec-93 49.6
31-Dec-93 50.67
7-Jan-94 53.15
14-Jan-94 54.56
21-Jan-94 67.95
28-Jan-94 73.74
4-Feb-94 85.25
11-Feb-94 92.49
18-Feb-94 82.85
25-Feb-94 72.23
4-Mar-94 69.73
11-Mar-94 68.25
18-Mar-94 57.84
25-Mar-94 59.81
31-Mar-94 54.19
8-Apr-94 48.05
15-Apr-94 39.77
22-Apr-94 35.83
29-Apr-94 47.9
6-May-94 38.28
13-May-94 41.05
20-May-94 48.76
27-May-94 52.31
3-Jun-94 51.7
10-Jun-94 48.44
17-Jun-94 41.71
24-Jun-94 30.17
1-Jul-94 37.65
8-Jul-94 40.12
15-Jul-94 41.7
22-Jul-94 38.17
29-Jul-94 43.66
5-Aug-94 53.65
12-Aug-94 50.8
19-Aug-94 52.33
26-Aug-94 52.04
2-Sep-94 49.11
9-Sep-94 50.21
16-Sep-94 53.39
23-Sep-94 57.99
30-Sep-94 57.73
7-Oct-94 46.33
14-Oct-94 44.27
21-Oct-94 43.21
28-Oct-94 45.12
4-Nov-94 45.35
11-Nov-94 38.69
18-Nov-94 28.79
25-Nov-94 22.69
2-Dec-94 25.88
9-Dec-94 25.63
16-Dec-94 22.74
23-Dec-94 -0.16
30-Dec-94 -0.97
6-Jan-95 -13.99
13-Jan-95 -10.6
20-Jan-95 -22.63
27-Jan-95 -23.43
3-Feb-95 -26.23
10-Feb-95 -34.27
17-Feb-95 -36.48
24-Feb-95 -32.02
3-Mar-95 -36.61
10-Mar-95 -41.23
17-Mar-95 -35.62
24-Mar-95 -32
31-Mar-95 -31.19
7-Apr-95 -23.82
13-Apr-95 -23.19
21-Apr-95 -14.72
28-Apr-95 -14.78
5-May-95 -2.86
12-May-95 -2.05
19-May-95 -10.35
26-May-95 -14.97
2-Jun-95 -15.69
9-Jun-95 -17.93
16-Jun-95 -14.9
23-Jun-95 -10.88
30-Jun-95 -11.18
7-Jul-95 -9.71
14-Jul-95 -7.29
21-Jul-95 -9.73
28-Jul-95 -15.53
4-Aug-95 -17.53
11-Aug-95 -18.62
18-Aug-95 -24.58
25-Aug-95 -26.58
1-Sep-95 -26.4
8-Sep-95 -26.11
15-Sep-95 -26.4
22-Sep-95 -29.69
29-Sep-95 -30.71
6-Oct-95 -28.88
13-Oct-95 -32.24
20-Oct-95 -28.51
27-Oct-95 -33.8
3-Nov-95 -33.39
10-Nov-95 -35.77
17-Nov-95 -32.66
24-Nov-95 -28.75
1-Dec-95 -27.96
8-Dec-95 -29.57
15-Dec-95 -28.81
22-Dec-95 -13.24
29-Dec-95 -15.09
5-Jan-96 -1.68
12-Jan-96 -5.9
19-Jan-96 1.94
26-Jan-96 4.76
2-Feb-96 6.49
9-Feb-96 13.52
16-Feb-96 19.91
23-Feb-96 20.05
1-Mar-96 27.01
8-Mar-96 28.49
15-Mar-96 23.48
22-Mar-96 19.5
29-Mar-96 21.39
4-Apr-96 14.83
12-Apr-96 21.44
19-Apr-96 17.17
26-Apr-96 11.84
3-May-96 5.03
10-May-96 5.97
17-May-96 7.47
24-May-96 11.28
31-May-96 8.66
7-Jun-96 12.25
14-Jun-96 11
21-Jun-96 17.07
28-Jun-96 13.96
5-Jul-96 6.71
12-Jul-96 3.52
19-Jul-96 6.7
26-Jul-96 4.51
2-Aug-96 5.63
9-Aug-96 5.89
16-Aug-96 8.17
23-Aug-96 7.87
30-Aug-96 6.82
6-Sep-96 6.07
13-Sep-96 6.07
20-Sep-96 10.09
27-Sep-96 11.52
4-Oct-96 17.08
11-Oct-96 18.25
18-Oct-96 16.28
25-Oct-96 21.48
1-Nov-96 22.7
8-Nov-96 27.25
15-Nov-96 25.82
22-Nov-96 22.17
29-Nov-96 18.13
6-Dec-96 20.77
13-Dec-96 16.98
20-Dec-96 15.38
27-Dec-96 18.46
3-Jan-97 12.49
10-Jan-97 18.53
17-Jan-97 20.8
24-Jan-97 18.79
31-Jan-97 15.02
7-Feb-97 20.8
14-Feb-97 29.19
21-Feb-97 28.93
28-Feb-97 31.52
7-Mar-97 40.28
14-Mar-97 38.43
21-Mar-97 32.13
27-Mar-97 33.37
4-Apr-97 32.77
11-Apr-97 30.72
18-Apr-97 26.39
25-Apr-97 28.38
2-May-97 32.23
9-May-97 30.59
16-May-97 28.9
23-May-97 30.85
30-May-97 34.95
6-Jun-97 37.77
13-Jun-97 42.61
20-Jun-97 41.46
27-Jun-97 43.72
3-Jul-97 46.65
11-Jul-97 51.47
18-Jul-97 39.28
25-Jul-97 54.74
1-Aug-97 47.98
8-Aug-97 48.79
15-Aug-97 42.55
22-Aug-97 43.13
29-Aug-97 38.11
5-Sep-97 45.31
12-Sep-97 40.44
19-Sep-97 43.97
26-Sep-97 45.57
3-Oct-97 46.47
10-Oct-97 46.84
17-Oct-97 45.39
24-Oct-97 39.49
31-Oct-97 19.91
7-Nov-97 18.6
14-Nov-97 15.31
21-Nov-97 23.45
28-Nov-97 24.11
5-Dec-97 28.29
12-Dec-97 24.6
19-Dec-97 21.57
26-Dec-97 23.3
2-Jan-98 28.62
9-Jan-98 5.82
16-Jan-98 5.1
23-Jan-98 3.59
30-Jan-98 3.82
6-Feb-98 4.67
13-Feb-98 0.96
20-Feb-98 -0.34
27-Feb-98 2.5
6-Mar-98 3.79
13-Mar-98 5.41
20-Mar-98 8.43
27-Mar-98 8.92
3-Apr-98 7.23
9-Apr-98 7.26
17-Apr-98 8.31
24-Apr-98 4.83
1-May-98 2.87
8-May-98 -1.67
15-May-98 -4.97
22-May-98 -11.39
29-May-98 -15.76
5-Jun-98 -14.94
12-Jun-98 -24.17
19-Jun-98 -25.45
26-Jun-98 -29.06
2-Jul-98 -27.74
10-Jul-98 -27.48
17-Jul-98 -15.83
24-Jul-98 -24.4
31-Jul-98 -26.16
7-Aug-98 -32.95
14-Aug-98 -35.42
21-Aug-98 -41.76
28-Aug-98 -46.11
4-Sep-98 -53.46
11-Sep-98 -55.63
18-Sep-98 -49.44
25-Sep-98 -46.94
2-Oct-98 -50.36
9-Oct-98 -50.73
16-Oct-98 -47
23-Oct-98 -40.89
30-Oct-98 -30.86
6-Nov-98 -23.15
13-Nov-98 -25.99
20-Nov-98 -26.64
27-Nov-98 -25.01
4-Dec-98 -35.94
11-Dec-98 -33.13
18-Dec-98 -34.48
24-Dec-98 -33.97
31-Dec-98 -38.55
8-Jan-99 -31.12
15-Jan-99 -39.16
22-Jan-99 -39.12
29-Jan-99 -38.58
5-Feb-99 -37.49
12-Feb-99 -36.08
19-Feb-99 -35.16
26-Feb-99 -37.95
5-Mar-99 -36.87
12-Mar-99 -34.59
19-Mar-99 -32.69
26-Mar-99 -32.8
</TABLE>
Source: MSCI, CSAM
A. DISCOVERY
- - Emerging market mania
- - Latin stabilization. Excess liquidity into EMF
B. DISAPPOINTMENT
- - Regional crash caused by the "Tequila Crisis"
- - EMBI spread widens sharply to over 1900 bps
- - Brazil recovers under new President Cardoso and the Real Plan
- - Mexico stabilizes as exports boom and the US Treasury offers $50bln
C. DEFLATION?
- - Contagion from ASIAN crisis
- - October 1997 Brazil barely escapes
- - Mid-1998 Russia default plus Japanese inertia results in 40% fall in one
month (August)
- - Brazil devalues and all of Latin America is held hostage
7
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
LATIN AMERICA: ECONOMIC OUTLOOK
SHARPLY LOWER GROWTH
[GRAPH]
In the printed version of the document, a horizontal linear graph appears
which depicts the following percentages:
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996 1997 1998E 1999F 2000F
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mexico 5.1 4.2 3.6 2.0 4.5 -6.2 5.1 7.0 4.9 1.2
Argentina -1.8 10.6 9.6 5.7 8.0 -4.0 4.8 8.6 4.4 -2.1
Chile 3.3 7.3 12.3 7.0 5.7 10.6 7.4 7.1 3.2 0.2
Colombia 4.3 2.0 4.0 5.4 5.8 5.8 2.1 3.1 1.6 0.8
Peru -3.8 2.9 -1.7 6.4 13.1 7.2 2.6 7.2 0.6 1.2
Ecuador 3.0 4.9 3.6 2.0 4.3 2.3 2.0 3.4 0.7 -4.3
Brazil -4.3 0.3 -0.8 4.2 5.9 4.2 2.8 3.7 0.5 -6.0
Venezuela 6.5 9.7 6.8 0.3 -2.3 3.7 -0.4 5.1 -0.7 -3.0
</TABLE>
ECONOMIC GROWTH PROSPECTS POOR
- - Pressures on exchange rates and interest rates
- - Financing difficulties due to reduced access to international capital
markets
- - Multilateral/bilateral funding much more important
- - Brazil, Argentina, and Venezuela most affected; Chile relatively insulated
8
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
LATIN AMERICA: FINANCING PRESSURES
- - Financial pressures could be manageable if all goes well
- - Argentina and Mexico are most vulnerable
- - The wild card everywhere: private sector capital flight
<TABLE>
<CAPTION>
1999F
- ----------------------------------------------------------------------------------------------------------------
ARGENTINA MEXICO BRAZIL CHILE VENEZUELA MEXICO(12/94) KOREA (12/97)
<S> <C> <C> <C> <C> <C> <C> <C>
US$BILLION
Short Term Bank Debt 34.5 28.2 35.0* 10.1 4.8 60.0 100.0
Amortization 8.8 14.7 32.9 2.2 3.6 11.0 6.0
Current Account Deficit 9.2 10.3 13.2 2.7 4.1 30.0 2.0
TOTAL EXPOSURE 52.4 53.2 81.1 15.0 12.6 101.0 108.0
Gross Revenues 26.4 30.7 35.8 16.0 13.9 6.0 6.0
Multilateral Support 0.0 0.0 25.0 0.0 0.0 0.0 38.0
TOTAL RESERVES 26.4 30.7 60.8 16.0 13.9 6.0 44.0
EXPOSURE/RESOURCES (%) 2.0 1.7 1.3 0.9 0.9 16.8 2.5
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Salomon Smith Barney, BIS (end June 1998 data), Salomon Smith Barney
Forecast for 1999*Salomon Smith Barney Estimate
9
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
BRAZIL
<TABLE>
<CAPTION>
<S><C>
CONTINUUM OF POLICY OPTIONS
--------------------------------
POLICY OPTIONS
--------------------------------
/ \
/ \
/ \
/ \
/ \
/ \
/ \
-------------------- -------------------
MARKET RESPONSE NON-MARKET RESPONSE
SCENARIO SCENARIO
-------------------- -------------------
/ \ / \
/ \ / \
/ \ / \
/ \ / \
--------------------- ---------------------- ---------------------- ------------------------
Lower Interest Rates/ Higher Interest Rates/ Low Level of Voluntary High Level of Forced
Weaker Real/ Stronger Real/ Debt Restructuring/Low Debt Restructuring/High
Less GDP Contraction More GDP Contraction Degree of Capital Degree of Capital
Controls Controls
-------------------- ---------------------- ---------------------- ------------------------
</TABLE>
Source: Bear Stearns, 2/99
10
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
SCHEDULED DEBT AMORTIZATIONS
[GRAPH]
In the printed version of the document, a columnar graph appears which depicts
the following plot points:
<TABLE>
<CAPTION>
US$MILLIONS
January February March April May June
<S> <C> <C> <C> <C> <C> <C>
Eurobonds 650 1500 1550 1000 750 1450
Loans 250 400 1250 300 1000
Total 650 1696 1929 2344 1057 2491
</TABLE>
Source: Bozano, Simonsen
11
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
BRAZIL: INTERNATIONAL RESERVES IN 1H 1999
INTERNATIONAL LIQUIDITY
[GRAPH]
In the printed version of the document, a line graph appears
which depicts the following plot points:
<TABLE>
<CAPTION>
Date U.S.$Millions
<S> <C>
27-Jan 36,116.00
28-Jan 36,111.00
29-Jan 35,892.00
1-Feb 35,918.00
2-Feb 35,911.00
3-Feb 35,948.00
4-Feb 35,931.00
5-Feb 35,928.00
8-Feb 35,836.00
9-Feb 35,831.00
10-Feb 35,825.00
11-Feb 35,823.00
12-Feb 35,787.00
17-Feb 35,774.00
18-Feb 35,757.00
19-Feb 35,738.00
22-Feb 35,705.00
23-Feb 35,687.00
24-Feb 35,603.00
25-Feb 35,328.00
26-Feb 35,093.00
1-Mar 35,028.00
2-Mar 34,799.00
3-Mar 34,588.00
4-Mar 34,572.00
5-Mar 34,536.00
8-Mar 35,502.00
9-Mar 35,423.00
10-Mar 35,139.00
11-Mar 34,641.00
12-Mar 34,355.00
15-Mar 34,386.00
16-Mar 34,398.00
17-Mar 34,317.00
End April + 38,300.00
End May + 37,100.00
</TABLE>
+ forecast
Source: Solomon Smith Barney
TOUGH POLICY CHOICES AHEAD
- - Currency float has provided short-term relief
- - Harsh policy choices need to be strictly followed
- - Deep recession ahead
-Lower interest rates critical, but unlikely in the near future
- - Critical issues to monitor
-Fiscal adjustment
-Usable Fx reserves, market interest rates
-IMF consultations and official financial assistance
-Private capital inflows
12
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
BRAZIL: EVOLUTION & PROSPECTS FOR NET PUBLIC SECTOR DEBT
NET PUBLIC SECTOR DEBT AS A % OF GDP
[GRAPH]
In the printed version of the document, a line graph appears
which depicts the following plot points:
<TABLE>
<CAPTION>
Date % of GDP
<S> <C>
Jan-97 33.4
Feb-97 33.5
Mar-97 33.3
Apr-97 33.4
May-97 33.2
Jun-97 32.3
Jul-97 32.7
Aug-97 32.6
Sep-97 33.1
Oct-97 33.4
Nov-97 33.5
Dec-97 34.5
Jan-98 35.3
Feb-98 35.9
Mar-98 36
Apr-98 36.4
May-98 36.9
Jun-98 38.2
Jul-98 38.6
Aug-98 38.9
Sep-98 39.7
Oct-98 40.8
Nov-98 41.9
Dec-98 42.6
Jan-99+ 52
Feb-99+ 53.2
Mar-99+ 52.2
Apr-99+ 52
May-99+ 51.7
Jun-99+ 51.4
Jul-99+ 51.1
Aug-99+ 51.4
Sep-99+ 51.2
Oct-99+ 50.9
Nov-99+ 50.4
Dec-99+ 49.3
Jan-00+ 48.6
Feb-00+ 48.7
Mar-00+ 48.5
Apr-00+ 48.7
May-00+ 48.6
Jun-00+ 48.8
Jul-00+ 49.2
Aug-00+ 49.1
Sep-00+ 48.4
Oct-00+ 48.4
Nov-00+ 48.2
Dec-00+ 47.4
</TABLE>
+ forecast
AN UPSIDE SCENARIO?
- - Stabilizing the foreign exchange market
-The approach to the commercial banks
-Bridge financing from IFIs
-Current account adjustment
- - Keeping inflation under control
-Implementing the fiscal program
-Inflation targeting at the central bank
-Pass-through to consumer prices
- - Managing internal debt dynamics
-Real interest rates and economic growth
-Evolution of internal debt ratios
-Avoiding forced scheduling
CONCLUSION: PROBABLITY OF A "MUDDLE THROUGH" SCENARIO IS INCREASING
13
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
MEXICO
FISCAL BUDGET
[GRAPH]
In the printed version of the document, a vertical and linear graph appears
which depicts the following plot points:
<TABLE>
<CAPTION>
Yearly Operational Balance as GDP, Annual Growth
Quarters % of GDP for Past 12 Months in Real Terms
<S> <C> <C>
87Q1 -14.27511696 -1.00%
87Q2 -13.6520619 0.20%
87Q3 -11.99784216 2.90%
87Q4 -14.2915844 4.90%
88Q1 -13.43961486 2.70%
88Q2 -12.48379852 1.10%
88Q3 -11.91861678 0.10%
88Q4 -10.29000088 1.30%
89Q1 -8.640149355 3.10%
89Q2 -6.99806503 4.80%
89Q3 -5.795022229 5.90%
89Q4 -4.636537929 3.20%
90Q1 -4.721293484 4.30%
90Q2 -3.867609234 3.90%
90Q3 -2.964623635 4.80%
90Q4 -2.621958642 7.20%
91Q1 -1.562415248 3.80%
91Q2 -1.106026102 5.60%
91Q3 -0.738848938 3.40%
91Q4 -0.499846521 4.00%
92Q1 0.424476902 4.90%
92Q2 0.948883314 2.40%
92Q3 1.638925813 4.50%
92Q4 1.455705079 2.90%
93Q1 1.274777083 4.00%
93Q2 1.238623041 0.60%
93Q3 0.487235054 1.30%
93Q4 0.656179463 2.00%
94Q1 0.464136052 2.30%
94Q2 -0.122847656 5.60%
94Q3 -0.213130679 4.60%
94Q4 -0.121880263 5.20%
95Q1 0.360650946 -0.40%
95Q2 0.873855279 -9.20%
95Q3 1.35976196 -8.00%
95Q4 -0.010905054 -7.00%
96Q1 -0.457475539 0.10%
96Q2 0.255240218 6.50%
96Q3 0.098107259 7.10%
96Q4 -0.128870268 7.10%
97Q1 0.507167265 4.60%
97Q2 0.112853072 8.30%
97Q3 0.012769827 7.40%
97Q4 -0.678072117 6.60%
98Q1 -1.190457653 7.50%
98Q2 -1.365866102 4.40%
98Q3 -1.458681184 5.00%
98Q4 -1.250794251 2.60%
</TABLE>
CURRENT ACCOUNT BALANCE
[GRAPH]
In the printed version of the document, a vertical and linear graph appears
which depicts the following plot points:
<TABLE>
<CAPTION>
Yearly Current Account Trade Balance for Services, Income and
Quarters as a % of GDP Past 12 Months Transfers Balance
<S> <C> <C> <C>
86Q1 0.158566212 7.142 -6.917478
86Q2 -0.074789976 6.414 -6.516997
86Q3 -0.858852041 5.428 -6.480182
86Q4 -1.126178545 5.019 -6.394506
87Q1 0.288720205 6.122 -5.719427
87Q2 1.909573743 7.849 -5.072606
87Q3 2.703360796 8.736 -4.794214
87Q4 2.901440552 8.786 -4.548186
88Q1 2.193669283 8.195 -4.576118
88Q2 1.181597435 6.814 -4.68131
88Q3 0.082891099 4.782 -4.633655
88Q4 -1.205883298 2.611 -4.986774
89Q1 -1.939622427 1.337 -5.502643
89Q2 -2.440747027 0.389 -5.862117
89Q3 -2.836059263 0.526 -6.606634
89Q4 -2.584955824 0.405 -6.22741
90Q1 -2.904270402 0.543 -7.525084
90Q2 -2.915580345 -0.546 -6.824524
90Q3 -2.788821088 -0.941 -6.148193
90Q4 -2.605721412 -0.881 -6.572033
91Q1 -2.491418523 -2.2855 -5.081622
91Q2 -3.027821192 -2.8834 -6.70681
91Q3 -3.946410748 -4.6092 -7.379294
91Q4 -4.33745029 -6.9849 -7.612937
92Q1 -5.1402285 -9.4996 -8.145734
92Q2 -5.40869975 -11.9977 -7.662731
92Q3 -6.256050319 -14.0253 -8.31197
92Q4 -6.296533533 -15.9334 -8.506056
93Q1 -6.365249505 -16.1684 -8.775955
93Q2 -6.141980478 -15.4172 -9.235278
93Q3 -6.259856723 -14.8502 -9.621898
93Q4 -5.475101126 -13.4532 -9.918648
94Q1 -5.742301808 -14.1397 -10.35718
94Q2 -6.189158827 -15.4871 -10.910577
94Q3 -6.783264266 -16.8013 -10.866568
94Q4 -7.104022513 -18.5461 -11.198223
95Q1 -8.966155091 -13.6516 -10.665326
95Q2 -5.617717494 -6.4706 -9.98225
95Q3 -3.082882488 0.5746 -9.53319
95Q4 -0.543993342 7.0896 -8.665211
96Q1 -0.107201765 8.4272 -8.752741
96Q2 -0.118026257 8.0247 -8.411492
96Q3 -0.232909927 7.222 -7.988889
96Q4 -0.629978725 6.5309 -8.8612
97Q1 -0.637149409 6.1661 -8.5511
97Q2 -0.963061516 4.6097 -8.4257
97Q3 -1.399641184 2.889 -8.4197
97Q4 -1.697724214 0.6637 -8.0809
98Q1 -2.407866695 -2.6519 -7.671
98Q2 -2.951518132 -4.4374 -8.1906
98Q3 -3.762987133 -6.4183 -8.3042
98Q4 -3.824673351 -7.7422 -8.0441
</TABLE>
Source: Merrill Lynch
- - Mexico managed its fiscal budget prudently in 1998
- - Oil price declines were met with successive cuts in expenditures
- - This clearly set the stage for reduced sovereign risk recently
- - At the same time, the current account widened significantly
- - FDI flows were robust and covered the deficit, but export growth is a key
variable for 1999
14
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
COPPER PRICE & INVENTORIES LME 1990-1999
COPPER PRICE
[GRAPH]
In the printed version of the document, a line graph appears which depicts
the following plot points:
<TABLE>
<CAPTION>
Date Inventories LME Cu LME, spot
<S> <C> <C>
5-Jan-90 108,975 1.123
12-Jan-90 106,200 1.109
19-Jan-90 104,375 1.039
26-Jan-90 104,150 0.997
2-Feb-90 99,950 1.014
9-Feb-90 93,725 1.036
16-Feb-90 88,300 1.075
23-Feb-90 88,300 1.091
2-Mar-90 78,875 1.097
9-Mar-90 76,525 1.156
16-Mar-90 75,000 1.185
23-Mar-90 72,075 1.143
30-Mar-90 59,125 1.16
6-Apr-90 55,225 1.159
13-Apr-90 54,575 1.166
20-Apr-90 66,900 1.114
27-Apr-90 62,675 1.127
4-May-90 61,200 1.139
11-May-90 61,350 1.151
18-May-90 78,675 1.137
25-May-90 77,100 1.143
1-Jun-90 76,425 1.114
8-Jun-90 73,050 1.125
15-Jun-90 66,325 1.113
22-Jun-90 60,725 1.123
29-Jun-90 59,400 1.152
6-Jul-90 53,550 1.182
13-Jul-90 46,850 1.231
20-Jul-90 61,525 1.184
27-Jul-90 84,975 1.259
3-Aug-90 104,350 1.269
10-Aug-90 115,600 1.308
17-Aug-90 129,750 1.31
24-Aug-90 131,025 1.301
31-Aug-90 133,075 1.296
7-Sep-90 133,175 1.3
14-Sep-90 150,675 1.321
21-Sep-90 174,800 1.237
28-Sep-90 187,575 1.235
5-Oct-90 186,200 1.235
12-Oct-90 193,375 1.183
19-Oct-90 197,500 1.17
26-Oct-90 184,025 1.207
2-Nov-90 181,975 1.154
9-Nov-90 179,675 1.161
16-Nov-90 177,650 1.18
23-Nov-90 178,250 1.155
30-Nov-90 168,400 1.129
7-Dec-90 163,300 1.141
14-Dec-90 165,075 1.12
21-Dec-90 173,275 1.113
28-Dec-90 178,650 1.15
4-Jan-91 181,500 1.161
11-Jan-91 178,475 1.15
18-Jan-91 186,525 1.103
25-Jan-91 187,075 1.056
1-Feb-91 188,925 1.078
8-Feb-91 190,800 1.081
15-Feb-91 193,600 1.087
22-Feb-91 195,450 1.097
1-Mar-91 202,775 1.106
8-Mar-91 209,150 1.097
15-Mar-91 207,050 1.063
22-Mar-91 207,950 1.077
29-Mar-91 213,925 1.077
5-Apr-91 186,900 1.079
12-Apr-91 218,775 1.08
19-Apr-91 226,600 1.088
26-Apr-91 230,175 1.092
3-May-91 237,875 1.043
10-May-91 261,775 1.04
17-May-91 285,925 0.971
24-May-91 286,350 1
31-May-91 279,800 0.963
7-Jun-91 273,100 0.986
14-Jun-91 269,275 0.996
21-Jun-91 259,900 1.014
28-Jun-91 263,350 1.008
5-Jul-91 265,000 1.034
12-Jul-91 262,575 1.013
19-Jul-91 255,350 1.01
26-Jul-91 259,775 1.012
2-Aug-91 266,500 1.032
9-Aug-91 280,100 1.02
16-Aug-91 288,575 1.001
23-Aug-91 296,000 0.995
30-Aug-91 303,250 1.018
6-Sep-91 310,000 1.041
13-Sep-91 312,475 1.047
20-Sep-91 312,075 1.035
27-Sep-91 309,300 1.051
4-Oct-91 304,825 1.048
11-Oct-91 300,925 1.044
18-Oct-91 300,125 1.055
25-Oct-91 294,050 1.047
1-Nov-91 291,625 1.063
8-Nov-91 293,200 1.059
15-Nov-91 292,650 1.052
22-Nov-91 297,025 1.039
29-Nov-91 302,325 1.031
6-Dec-91 314,600 1.017
13-Dec-91 314,450 0.99
20-Dec-91 316,875 1.01
27-Dec-91 325,500 0.991
3-Jan-92 332,325 0.965
10-Jan-92 332,425 0.959
17-Jan-92 327,850 0.993
24-Jan-92 315,675 0.993
31-Jan-92 305,575 1.008
7-Feb-92 310,225 0.999
14-Feb-92 305,950 1.005
21-Feb-92 308,550 1.008
28-Feb-92 302,725 1.028
6-Mar-92 302,325 1.01
13-Mar-92 301,975 1.011
20-Mar-92 303,300 1.007
27-Mar-92 300,775 1.015
3-Apr-92 296,400 1.026
10-Apr-92 292,050 1.008
17-Apr-92 287,300 1.001
24-Apr-92 282,925 1.007
1-May-92 279,650 1.007
8-May-92 275,350 1.008
15-May-92 271,750 1.014
22-May-92 265,725 1.013
29-May-92 264,750 1.015
5-Jun-92 264,500 1.034
12-Jun-92 263,350 1.026
19-Jun-92 263,750 1.046
26-Jun-92 261,200 1.085
3-Jul-92 259,125 1.113
10-Jul-92 262,400 1.123
17-Jul-92 257,975 1.166
24-Jul-92 255,975 1.145
31-Jul-92 251,350 1.151
7-Aug-92 248,500 1.144
14-Aug-92 251,350 1.12
21-Aug-92 262,325 1.164
28-Aug-92 268,550 1.137
4-Sep-92 275,275 1.147
11-Sep-92 278,800 1.077
18-Sep-92 285,075 1.092
25-Sep-92 288,225 1.099
2-Oct-92 296,750 1.036
9-Oct-92 300,125 1.042
16-Oct-92 302,450 1.014
23-Oct-92 307,150 1.018
30-Oct-92 314,400 1.032
6-Nov-92 320,475 0.997
13-Nov-92 321,100 0.979
20-Nov-92 324,100 0.973
27-Nov-92 327,000 0.995
4-Dec-92 327,375 0.99
11-Dec-92 332,850 1
18-Dec-92 337,325 1.005
25-Dec-92 342,400 1.023
8-Jan-93 314,900 1.084
15-Jan-93 308,900 0.998
22-Jan-93 314,850 1.012
29-Jan-93 311,325 1.003
5-Feb-93 315,475 1.015
12-Feb-93 318,875 1.004
19-Feb-93 319,425 1.019
26-Feb-93 328,125 0.979
5-Mar-93 334,775 0.966
12-Mar-93 339,400 1.001
19-Mar-93 347,350 0.996
26-Mar-93 354,700 0.981
2-Apr-93 362,125 0.974
9-Apr-93 367,250 0.927
16-Apr-93 369,600 0.847
23-Apr-93 382,100 0.861
30-Apr-93 392,375 0.852
7-May-93 400,300 0.793
14-May-93 407,125 0.839
21-May-93 413,675 0.83
28-May-93 420,400 0.814
4-Jun-93 424,800 0.868
11-Jun-93 436,300 0.832
18-Jun-93 449,375 0.836
25-Jun-93 455,375 0.858
2-Jul-93 447,075 0.876
9-Jul-93 454,500 0.901
16-Jul-93 456,825 0.867
23-Jul-93 462,975 0.865
30-Jul-93 463,250 0.892
6-Aug-93 470,600 0.884
13-Aug-93 479,925 0.863
20-Aug-93 497,450 0.865
27-Aug-93 517,250 0.874
3-Sep-93 524,500 0.886
10-Sep-93 526,150 0.86
17-Sep-93 547,875 0.796
24-Sep-93 567,875 0.801
1-Oct-93 601,725 0.769
8-Oct-93 594,550 0.77
15-Oct-93 601,250 0.77
22-Oct-93 606,050 0.743
29-Oct-93 613,600 0.742
5-Nov-93 606,675 0.754
12-Nov-93 592,800 0.756
19-Nov-93 585,825 0.745
26-Nov-93 585,975 0.752
3-Dec-93 592,425 0.763
10-Dec-93 589,950 0.778
17-Dec-93 586,700 0.79
24-Dec-93 589,225 0.817
31-Dec-93 599,500 0.811
14-Jan-94 617,800 0.83
21-Jan-94 607,575 0.849
28-Jan-94 600,775 0.851
4-Feb-94 594,950 0.865
11-Feb-94 583,400 0.835
18-Feb-94 564,850 0.864
25-Feb-94 558,950 0.864
4-Mar-94 546,875 0.864
11-Mar-94 537,475 0.869
18-Mar-94 520,625 0.889
25-Mar-94 514,975 0.881
1-Apr-94 504,350 0.862
8-Apr-94 497,825 0.86
15-Apr-94 495,475 0.854
22-Apr-94 480,975 0.869
29-Apr-94 473,450 0.882
6-May-94 456,425 0.915
13-May-94 424,700 0.981
20-May-94 399,725 1.004
27-May-94 387,000 1.009
3-Jun-94 382,750 1.016
10-Jun-94 371,200 1.087
17-Jun-94 360,850 1.113
24-Jun-94 356,900 1.116
1-Jul-94 353,925 1.09
8-Jul-94 347,800 1.108
15-Jul-94 342,125 1.13
22-Jul-94 339,600 1.143
29-Jul-94 338,650 1.108
5-Aug-94 340,550 1.09
12-Aug-94 346,475 1.1
19-Aug-94 353,575 1.094
26-Aug-94 360,450 1.096
2-Sep-94 367,350 1.133
9-Sep-94 369,400 1.134
16-Sep-94 368,825 1.127
23-Sep-94 366,300 1.16
30-Sep-94 360,800 1.134
7-Oct-94 347,375 1.149
14-Oct-94 337,100 1.126
21-Oct-94 338,400 1.166
28-Oct-94 335,075 1.201
4-Nov-94 332,225 1.216
11-Nov-94 319,200 1.219
18-Nov-94 323,225 1.284
25-Nov-94 320,075 1.282
2-Dec-94 318,275 1.33
9-Dec-94 304,275 1.342
16-Dec-94 299,875 1.362
23-Dec-94 297,325 1.347
30-Dec-94 301,850 1.374
6-Jan-95 313,175 1.355
13-Jan-95 313,025 1.373
20-Jan-95 312,575 1.389
27-Jan-95 310,125 1.358
3-Feb-95 307,450 1.299
10-Feb-95 301,525 1.304
17-Feb-95 290,525 1.305
24-Feb-95 283,600 1.295
3-Mar-95 273,700 1.309
10-Mar-95 266,050 1.315
17-Mar-95 256,225 1.31
24-Mar-95 249,300 1.332
31-Mar-95 239,900 1.326
7-Apr-95 226,825 1.33
14-Apr-95 222,375 1.312
21-Apr-95 208,775 1.291
28-Apr-95 204,750 1.261
5-May-95 211,800 1.231
12-May-95 211,275 1.249
19-May-95 198,500 1.243
26-May-95 197,950 1.282
2-Jun-95 206,325 1.301
9-Jun-95 210,550 1.306
16-Jun-95 204,000 1.348
23-Jun-95 178,500 1.364
30-Jun-95 166,425 1.343
7-Jul-95 146,125 1.342
14-Jul-95 141,450 1.363
21-Jul-95 154,250 1.289
28-Jul-95 154,075 1.312
4-Aug-95 150,550 1.348
11-Aug-95 157,325 1.34
18-Aug-95 163,650 1.379
25-Aug-95 162,750 1.365
1-Sep-95 173,500 1.313
8-Sep-95 173,125 1.318
15-Sep-95 174,300 1.281
22-Sep-95 178,300 1.317
29-Sep-95 178,100 1.31
6-Oct-95 175,550 1.273
13-Oct-95 176,350 1.258
20-Oct-95 181,550 1.218
27-Oct-95 190,950 1.222
3-Nov-95 201,575 1.275
10-Nov-95 207,325 1.281
17-Nov-95 211,450 1.247
24-Nov-95 216,650 1.251
1-Dec-95 221,875 1.235
8-Dec-95 230,125 1.213
15-Dec-95 251,150 1.227
22-Dec-95 278,700 1.224
29-Dec-95 296,425 1.205
5-Jan-96 315,175 1.156
12-Jan-96 330,675 1.134
19-Jan-96 342,450 1.125
26-Jan-96 354,175 1.118
2-Feb-96 353,700 1.147
9-Feb-96 345,275 1.152
16-Feb-96 356,800 1.119
23-Feb-96 353,050 1.138
1-Mar-96 347,975 1.144
8-Mar-96 343,525 1.173
15-Mar-96 339,575 1.153
22-Mar-96 339,250 1.142
29-Mar-96 322,025 1.149
5-Apr-96 319,375 1.123
12-Apr-96 305,100 1.161
19-Apr-96 302,725 1.182
26-Apr-96 300,975 1.183
3-May-96 306,975 1.193
10-May-96 318,200 1.214
17-May-96 310,800 1.142
24-May-96 313,550 1.097
31-May-96 309,450 1.11
7-Jun-96 308,325 1.002
14-Jun-96 284,800 0.898
21-Jun-96 272,775 0.857
28-Jun-96 262,625 0.881
5-Jul-96 241,600 0.87
12-Jul-96 232,875 0.848
19-Jul-96 228,725 0.853
26-Jul-96 226,775 0.903
2-Aug-96 234,850 0.879
9-Aug-96 246,675 0.88
16-Aug-96 261,000 0.874
23-Aug-96 271,675 0.884
30-Aug-96 275,275 0.925
6-Sep-96 273,675 0.877
13-Sep-96 269,825 0.848
20-Sep-96 265,450 0.862
27-Sep-96 247,325 0.888
4-Oct-96 229,575 0.867
11-Oct-96 202,500 0.888
18-Oct-96 172,425 0.88
25-Oct-96 145,825 0.92
1-Nov-96 123,700 0.888
8-Nov-96 113,400 0.91
15-Nov-96 101,175 0.974
22-Nov-96 93,900 1.002
29-Nov-96 92,475 1.017
6-Dec-96 99,875 0.97
13-Dec-96 112,500 0.967
20-Dec-96 117,450 0.975
27-Dec-96 121,400 0.965
3-Jan-97 123,225 0.995
10-Jan-97 131,275 1.023
17-Jan-97 138,500 1.02
24-Jan-97 156,000 1.017
31-Jan-97 191,750 0.992
7-Feb-97 215,825 1.016
14-Feb-97 221,725 1.024
21-Feb-97 222,500 1.073
28-Feb-97 216,575 1.079
7-Mar-97 208,575 1.084
14-Mar-97 201,250 1.069
21-Mar-97 187,775 1.074
28-Mar-97 183,475 1.076
4-Apr-97 174,475 1.06
11-Apr-97 159,675 1.029
18-Apr-97 152,475 1.038
25-Apr-97 145,200 1.081
2-May-97 147,925 1.07
9-May-97 153,350 1.084
16-May-97 143,675 1.119
23-May-97 137,675 1.143
30-May-97 133,225 1.147
6-Jun-97 132,625 1.128
13-Jun-97 125,650 1.175
20-Jun-97 121,550 1.164
27-Jun-97 124,900 1.097
4-Jul-97 129,850 1.091
11-Jul-97 139,125 1.036
18-Jul-97 181,150 1.051
25-Jul-97 210,225 1.077
1-Aug-97 234,950 1.048
8-Aug-97 248,700 1.038
15-Aug-97 260,875 1.004
22-Aug-97 272,575 0.991
29-Aug-97 275,150 0.996
5-Sep-97 284,850 0.984
12-Sep-97 288,775 0.952
19-Sep-97 301,950 0.965
26-Sep-97 322,450 0.953
3-Oct-97 335,175 0.943
10-Oct-97 341,475 0.95
17-Oct-97 338,625 0.957
24-Oct-97 335,225 0.919
31-Oct-97 341,225 0.914
7-Nov-97 345,850 0.895
14-Nov-97 343,025 0.889
21-Nov-97 344,275 0.849
28-Nov-97 339,600 0.851
5-Dec-97 345,650 0.819
12-Dec-97 337,550 0.823
19-Dec-97 329,175 0.806
26-Dec-97 331,525 0.796
2-Jan-98 335,025 0.792
9-Jan-98 341,850 0.757
16-Jan-98 340,550 0.779
23-Jan-98 343,500 0.793
30-Jan-98 361,525 0.799
6-Feb-98 372,975 0.776
13-Feb-98 368,025 0.769
20-Feb-98 375,550 0.757
27-Feb-98 378,075 0.774
6-Mar-98 370,525 0.806
13-Mar-98 358,150 0.825
20-Mar-98 353,450 0.799
27-Mar-98 347,000 0.796
3-Apr-98 338,750 0.771
10-Apr-98 326,775 0.805
17-Apr-98 304,975 0.841
24-Apr-98 277,350 0.849
1-May-98 262,200 0.84
8-May-98 274,900 0.805
15-May-98 275,650 0.79
22-May-98 268,675 0.77
29-May-98 263,575 0.775
5-Jun-98 261,325 0.768
12-Jun-98 256,900 0.764
19-Jun-98 252,225 0.766
26-Jun-98 248,925 0.743
3-Jul-98 249,150 0.733
10-Jul-98 247,125 0.727
17-Jul-98 249,100 0.771
24-Jul-98 256,400 0.804
31-Jul-98 260,150 0.77
7-Aug-98 263,850 0.749
14-Aug-98 270,000 0.738
21-Aug-98 285,500 0.74
28-Aug-98 303,200 0.733
4-Sep-98 337,300 0.757
11-Sep-98 362,725 0.767
18-Sep-98 379,600 0.755
25-Sep-98 401,375 0.755
2-Oct-98 414,575 0.733
9-Oct-98 425,025 0.73
16-Oct-98 432,175 0.747
23-Oct-98 441,450 0.731
30-Oct-98 457,675 0.733
6-Nov-98 464,200 0.741
13-Nov-98 478,400 0.72
20-Nov-98 484,425 0.733
27-Nov-98 504,025 0.721
4-Dec-98 531,675 0.693
11-Dec-98 543,925 0.67
18-Dec-98 558,150 0.668
25-Dec-98 576,825 0.665
1-Jan-99 589,925 0.677
8-Jan-99 601,075 0.665
15-Jan-99 604,225 0.67
22-Jan-99 615,875 0.664
29-Jan-99 643,900 0.649
4-Feb-99 663,000 0.666
</TABLE>
CHILEAN TRADE DEFICIT
[GRAPH]
In the printed version of the document, a vertical and linear graph appears
which depicts the following plot points:
<TABLE>
<CAPTION>
12 Months
Period Ending U.S.$Millions
<S> <C>
1/15/81 -496.1
2/15/81 -679.9
3/15/81 -760.1
4/15/81 -990.8
5/15/81 -1062.4
6/15/81 -1267.3
7/15/81 -1500.5
8/15/81 -1522.6
9/15/81 -1622.2
10/15/81 -1669.1
11/15/81 -1739.8
12/15/81 -1651.9
1/15/82 -1547.6
2/15/82 -1413.8
3/15/82 -1231.2
4/15/82 -1017.8
5/15/82 -999.6
6/15/82 -772.9
7/15/82 -453.8
8/15/82 -169
9/15/82 71.7
10/15/82 287.5
11/15/82 486
12/15/82 700.3
1/15/83 791.6
2/15/83 865.7
3/15/83 885
4/15/83 927.5
5/15/83 1156.8
6/15/83 1312.5
7/15/83 1329.2
8/15/83 1392.7
9/15/83 1402.6
10/15/83 1402.9
11/15/83 1440.3
12/15/83 1377.2
1/15/84 1368.6
2/15/84 1360.7
3/15/84 1346.2
4/15/84 1376.4
5/15/84 1300
6/15/84 1221.8
7/15/84 1165.5
8/15/84 1001.5
9/15/84 925.9
10/15/84 814
11/15/84 792.3
12/15/84 808.5
1/15/85 790.2
2/15/85 749.2
3/15/85 743.1
4/15/85 720.8
5/15/85 779
6/15/85 740.6
7/15/85 816.9
8/15/85 896.2
9/15/85 929.6
10/15/85 1089.5
11/15/85 1087.2
12/15/85 1080.3
1/15/86 1090.5
2/15/86 1132
3/15/86 1167.6
4/15/86 1241.9
5/15/86 1253.8
6/15/86 1315.3
7/15/86 1299.6
8/15/86 1340.8
9/15/86 1334
10/15/86 1320.5
11/15/86 1286.8
12/15/86 1308.2
1/15/87 1255.5
2/15/87 1299.7
3/15/87 1214.8
4/15/87 1183.3
5/15/87 1131
6/15/87 1113.2
7/15/87 1151.5
8/15/87 1109.8
9/15/87 1109.9
10/15/87 1104.3
11/15/87 1142.1
12/15/87 1306.4
1/15/88 1532.1
2/15/88 1618.3
3/15/88 1726.9
4/15/88 1853.7
5/15/88 1941.7
6/15/88 2018.2
7/15/88 2048.6
8/15/88 2035.5
9/15/88 2146.4
10/15/88 2088.2
11/15/88 2293.5
12/15/88 2314.9
1/15/89 2275.3
2/15/89 2274
3/15/89 2315.3
4/15/89 2275.2
5/15/89 2343.4
6/15/89 2190.6
7/15/89 2002.2
8/15/89 2008
9/15/89 1945.8
10/15/89 2071
11/15/89 1914.7
12/15/89 1543.1
1/15/90 1454.8
2/15/90 1332.3
3/15/90 1221.6
4/15/90 1267.5
5/15/90 1294.8
6/15/90 1418.8
7/15/90 1538.7
8/15/90 1531.6
9/15/90 1537.5
10/15/90 1397.3
11/15/90 1307.9
12/15/90 1410.7
1/15/91 1368.9
2/15/91 1425
3/15/91 1538.7
4/15/91 1605.4
5/15/91 1524.3
6/15/91 1586.7
7/15/91 1572.3
8/15/91 1599.1
9/15/91 1609.5
10/15/91 1588.8
11/15/91 1529.5
12/15/91 1575.9
1/15/92 1531.8
2/15/92 1465.9
3/15/92 1537.5
4/15/92 1349.3
5/15/92 1352.7
6/15/92 1200.5
7/15/92 1155.7
8/15/92 1115.7
9/15/92 956.3
10/15/92 942
11/15/92 779.1
12/15/92 749.3
1/15/93 539
2/15/93 384
3/15/93 223.4
4/15/93 119.1
5/15/93 -169.9
6/15/93 -279.2
7/15/93 -470.8
8/15/93 -570.6
9/15/93 -656.9
10/15/93 -803.5
11/15/93 -778.6
12/15/93 -978.6
1/15/94 -817
2/15/94 -631.2
3/15/94 -664.3
4/15/94 -638.7
5/15/94 -492.5
6/15/94 -498.4
7/15/94 -327
8/15/94 -266.4
9/15/94 -150.6
10/15/94 -9.8
11/15/94 280.6
12/15/94 725.1
1/15/95 969.9
2/15/95 1045.9
3/15/95 1435.6
4/15/95 1637.9
5/15/95 1863.2
6/15/95 1883.5
7/15/95 1873
8/15/95 1795.7
9/15/95 1776.3
10/15/95 1641.6
11/15/95 1585.2
12/15/95 1369.2
1/15/96 1027.5
2/15/96 909.4
3/15/96 645.8
4/15/96 556.5
5/15/96 387.5
6/15/96 465.1
7/15/96 338.2
8/15/96 101.8
9/15/96 -81.9
10/15/96 -480.7
11/15/96 -816.6
12/15/96 -1095
1/15/97 -768
2/15/97 -395.3
3/15/97 -695.5
4/15/97 -1000.8
5/15/97 -1072.5
6/15/97 -1161.1
7/15/97 -1333.7
8/15/97 -1083.5
9/15/97 -1257
10/15/97 -1388.4
11/15/97 -1581.9
12/15/97 -1876.6
1/15/98 -2534.7
2/15/98 -3116.4
3/15/98 -3074.8
4/15/98 -3092.2
5/15/98 -3355.9
6/15/98 -3510
7/15/98 -3704.9
8/15/98 -4009.8
9/15/98 -3889.1
10/15/98 -3492.7
11/15/98 -3190.7
12/15/98 -2607.8
1/15/99
2/15/99
</TABLE>
Source: Celfin
15
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
ARGENTINA
FISCAL BUDGET
[GRAPH]
In the printed version of the document, a vertical and linear graph appears
which depicts the following plot points:
<TABLE>
<CAPTION>
Yearly Operational Balance as GDP Annual Growth
Quarters % of GDP for Past 12 Months in Real Terms
<S> <C> <C>
94Q1 0.240251056 11.50%
94Q2 0.433315698 8.50%
94Q3 0.37016937 6.60%
94Q4 0.066294454 5.90%
95Q1 -0.199634828 3.20%
95Q2 -0.468426361 -4.50%
95Q3 -0.610877412 -7.20%
95Q4 -0.611810359 -7.00%
96Q1 -0.431081627 -2.50%
96Q2 -0.481198944 5.50%
96Q3 -0.643811216 7.20%
96Q4 -0.808729397 9.00%
97Q1 -1.192673844 8.00%
97Q2 -1.089765979 8.30%
97Q3 -0.957591304 9.90%
97Q4 -0.852895035 8.20%
98Q1 -0.904033817 7.20%
98Q2 -0.739026285 7.40%
98Q3 -0.82157116 2.90%
98Q4 -0.775808964 0.20%
</TABLE>
CURRENT ACCOUNT BALANCE
[GRAPH]
In the printed version of the document, a vertical and linear graph appears
which depicts the following plot points:
<TABLE>
<CAPTION>
Yearly Current Account Trade Balance for Services, Income and
Quarters as a % of GDP Past 12 Months Transfers Balance
<S> <C> <C> <C>
87Q1 -3.085427874 2.133799956 -5.214
87Q2 -3.009933477 1.715899915 -5.144
87Q3 -3.412942188 1.209999968 -5.223
87Q4 -4.017841176 0.930000002 -5.252
88Q1 -4.02756792 1.231999965 -5.37
88Q2 -3.319293764 1.769999993 -5.524
88Q3 -2.122346963 2.98800046 -5.616
88Q4 -1.127265659 4.241000851 -5.814
89Q1 -1.073321361 4.636000861 -6.219
89Q2 -1.910323435 5.223000814 -6.446
89Q3 -1.171323742 5.764000302 -6.749
89Q4 -1.446512639 5.680889927 -7.014
90Q1 0.547619297 6.576889984 -6.143
90Q2 1.363115685 7.401689999 -5.838
90Q3 2.060588851 8.077798046 -5.077
90Q4 2.285100951 8.627194952 -4.076
91Q1 2.151947074 7.843123925 -4.446
91Q2 1.483771956 7.198023959 -4.416
91Q3 0.740684485 6.014515964 -4.533
91Q4 -0.311634996 4.404723031 -5.066
92Q1 -0.946431265 3.17014003 -5.117
92Q2 -1.217672139 1.426272002 -4.352
92Q3 -2.038141324 -0.638528 -4.368
92Q4 -2.210658362 -1.450122 -4.012
93Q1 -2.462591291 -1.493168 -4.262
93Q2 -2.248529019 -1.5327 -4.484
93Q3 -2.439317156 -1.7207 -4.983
93Q4 -2.736087164 -2.4174 -5.246
94Q1 -3.430004818 -3.7909 -5.451
94Q2 -3.519596292 -4.4487 -5.983
94Q3 -3.374364384 -4.5793 -5.595
94Q4 -3.297227165 -4.2386 -5.88
95Q1 -2.935094235 -3.0695 -5.541
95Q2 -1.96576074 -0.5261 -5.352
95Q3 -1.364633364 1.1703 -5.155
95Q4 -0.934450556 2.2356 -5.006
96Q1 -0.793539536 2.6457 -4.967
96Q2 -0.872643673 2.0258 -4.822
96Q3 -1.033026539 1.6382 -4.904
96Q4 -1.161702446 1.619 -5.409
97Q1 -1.46127711 1.234 -5.902
97Q2 -1.799369768 0.16 -6.422
97Q3 -2.253441893 -0.853 -7.015
97Q4 -2.6531485 -2.163 -7.173
98Q1 -3.197661243 -3 -7.911
98Q2 -3.02895013 -3.188 -8.137
98Q3 -3.38748122 -3.717 -8.414
98Q4 #N/A #N/A #N/A
</TABLE>
Source: Merrill Lynch
- - Despite a substantial period of economic growth, Argentina has fiscal
deficit
- - Fiscal reform is unlikely ahead of the Presidential elections
- - The current account deficit has increased and exports face further
pressures due to Brazil
- - Talk of dollarization is potentially bad news
16
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
ARE LATIN AMERICAN STOCK MARKETS CHEAP?
LATIN AMERICA: 12-MONTH FORWARD P/E
[GRAPH]
In the printed version of the document, a line graph appears which depicts
the following plot points:
<TABLE>
<CAPTION>
Date 12MF PE Mean + 1 Stdev - 1 Stdev
<S> <C> <C> <C> <C>
1/10/97 10.53 12.4 15.45 9.35
1/17/97 10.92 12.4 15.45 9.35
1/24/97 10.81 12.4 15.45 9.35
1/31/97 10.95 12.4 15.45 9.35
2/7/97 11.3 12.4 15.45 9.35
2/14/97 11.77 12.4 15.45 9.35
2/21/97 11.81 12.4 15.45 9.35
2/28/97 11.77 12.4 15.45 9.35
3/7/97 11.91 12.4 15.45 9.35
3/14/97 11.97 12.4 15.45 9.35
3/21/97 11.82 12.4 15.45 9.35
3/28/97 11.88 12.4 15.45 9.35
4/4/97 11.99 12.4 15.45 9.35
4/11/97 11.96 12.4 15.45 9.35
4/18/97 11.93 12.4 15.45 9.35
4/25/97 12.17 12.4 15.45 9.35
5/2/97 12.65 12.4 15.45 9.35
5/9/97 12.84 12.4 15.45 9.35
5/16/97 12.86 12.4 15.45 9.35
5/23/97 13.2 12.4 15.45 9.35
5/30/97 13.46 12.4 15.45 9.35
6/6/97 13.86 12.4 15.45 9.35
6/13/97 14.48 12.4 15.45 9.35
6/20/97 14.7 12.4 15.45 9.35
6/27/97 14.98 12.4 15.45 9.35
7/4/97 15.89 12.4 15.45 9.35
7/11/97 16.12 12.4 15.45 9.35
7/18/97 14.81 12.4 15.45 9.35
7/25/97 15.7 12.4 15.45 9.35
8/1/97 16.4 12.4 15.45 9.35
8/8/97 16.4 12.4 15.45 9.35
8/15/97 15.94 12.4 15.45 9.35
8/22/97 15.68 12.4 15.45 9.35
8/29/97 15.07 12.4 15.45 9.35
9/5/97 16.54 12.4 15.45 9.35
9/12/97 16.12 12.4 15.45 9.35
9/19/97 16.68 12.4 15.45 9.35
9/26/97 16.79 12.4 15.45 9.35
10/3/97 18.2 12.4 15.45 9.35
10/10/97 18.05 12.4 15.45 9.35
10/17/97 17.95 12.4 15.45 9.35
10/24/97 16.9 12.4 15.45 9.35
10/31/97 14.17 12.4 15.45 9.35
11/7/97 13.99 12.4 15.45 9.35
11/14/97 13.5 12.4 15.45 9.35
11/21/97 14.53 12.4 15.45 9.35
11/28/97 14.63 12.4 15.45 9.35
12/5/97 15.27 12.4 15.45 9.35
12/12/97 14.28 12.4 15.45 9.35
12/19/97 14.33 12.4 15.45 9.35
12/26/97 14.72 12.4 15.45 9.35
1/2/98 15.46 12.4 15.45 9.35
1/9/98 13.52 12.4 15.45 9.35
1/16/98 13.74 12.4 15.45 9.35
1/23/98 13.5 12.4 15.45 9.35
1/30/98 13.71 12.4 15.45 9.35
2/6/98 13.83 12.4 15.45 9.35
2/13/98 13.9 12.4 15.45 9.35
2/20/98 13.81 12.4 15.45 9.35
2/27/98 14.09 12.4 15.45 9.35
3/6/98 14.13 12.4 15.45 9.35
3/13/98 14.43 12.4 15.45 9.35
3/20/98 14.68 12.4 15.45 9.35
3/27/98 14.8 12.4 15.45 9.35
4/3/98 14.22 12.4 15.45 9.35
4/10/98 14.28 12.4 15.45 9.35
4/17/98 14.36 12.4 15.45 9.35
4/24/98 14.27 12.4 15.45 9.35
5/1/98 13.86 12.4 15.45 9.35
5/8/98 13.42 12.4 15.45 9.35
5/15/98 13.02 12.4 15.45 9.35
5/22/98 12.17 12.4 15.45 9.35
5/29/98 11.77 12.4 15.45 9.35
6/5/98 11.73 12.4 15.45 9.35
6/12/98 10.84 12.4 15.45 9.35
6/19/98 10.87 12.4 15.45 9.35
6/26/98 10.58 12.4 15.45 9.35
7/3/98 10.84 12.4 15.45 9.35
7/10/98 11.07 12.4 15.45 9.35
7/17/98 11.72 12.4 15.45 9.35
7/24/98 11.24 12.4 15.45 9.35
7/31/98 11.03 12.4 15.45 9.35
8/7/98 9.64 12.4 15.45 9.35
8/14/98 9 12.4 15.45 9.35
8/21/98 8.07 12.4 15.45 9.35
8/28/98 7.03 12.4 15.45 9.35
9/4/98 6.26 12.4 15.45 9.35
9/11/98 5.8 12.4 15.45 9.35
9/18/98 6.84 12.4 15.45 9.35
9/25/98 7.19 12.4 15.45 9.35
10/2/98 6.74 12.4 15.45 9.35
10/9/98 6.65 12.4 15.45 9.35
10/16/98 7.13 12.4 15.45 9.35
10/23/98 7.52 12.4 15.45 9.35
10/30/98 7.45 12.4 15.45 9.35
11/6/98 8.43 12.4 15.45 9.35
11/13/98 7.97 12.4 15.45 9.35
11/20/98 8.4 12.4 15.45 9.35
11/27/98 8.68 12.4 15.45 9.35
12/4/98 7.88 12.4 15.45 9.35
12/11/98 7.7 12.4 15.45 9.35
12/18/98 7.55 12.4 15.45 9.35
12/25/98 7.86 12.4 15.45 9.35
1/1/99 7.77 12.4 15.45 9.35
</TABLE>
Source: Bear Stearns
- - The markets have a tendency to overshoot
- - Asset prices start to incorporate the worst case scenario
- - International community steps up support, restores confidence in the region.
Stock prices find a floor.
17
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
SOVEREIGN SPREADS
ARGENTINA 9.75%
[GRAPH]
In the printed version of the document, a line graph appears which depicts
the following plot points:
<TABLE>
<CAPTION>
Date Spread
<S> <C>
8/21/97 310
8/22/97 310
8/25/97 310
8/26/97 334
8/27/97 340
8/28/97 333
8/29/97 335
9/2/97 341
9/3/97 343
9/4/97 342
9/5/97 345
9/8/97 345
9/9/97 344
9/10/97 345
9/11/97 346
9/12/97 338
9/15/97 338
9/16/97 331
9/17/97 328
9/18/97 328
9/19/97 325
9/22/97 328
9/23/97 336
9/24/97 338
9/25/97 339
9/26/97 339
9/29/97 335
9/30/97 339
10/1/97 338
10/2/97 336
10/3/97 329
10/6/97 331
10/7/97 372
10/8/97 413
10/9/97 587
10/10/97 587
10/14/97 614
10/15/97 610
10/16/97 537
10/17/97 489
10/20/97 450
10/21/97 497
10/22/97 523
10/23/97 545
10/24/97 562
10/27/97 590
10/28/97 617
10/29/97 566
10/30/97 548
10/31/97 509
11/3/97 521
11/4/97 500
11/5/97 496
11/6/97 455
11/7/97 496
11/10/97 479
11/12/97 479
11/13/97 472
11/14/97 465
11/17/97 443
11/18/97 431
11/20/97 429
11/21/97 419
11/24/97 401
11/25/97 412
11/26/97 432
12/1/97 471
12/2/97 494
12/3/97 518
12/4/97 479
12/5/97 478
12/8/97 474
12/9/97 487
12/10/97 495
12/11/97 491
12/12/97 486
12/15/97 477
12/16/97 468
12/17/97 459
12/18/97 434
12/19/97 431
12/22/97 429
12/23/97 431
12/24/97 433
12/26/97 450
12/29/97 467
12/30/97 441
12/31/97 478
1/2/98 489
1/5/98 489
1/6/98 472
1/7/98 466
1/8/98 481
1/9/98 460
1/12/98 462
1/13/98 464
1/14/98 466
1/15/98 462
1/16/98 457
1/20/98 452
1/21/98 441
1/22/98 442
1/23/98 438
1/26/98 417
1/27/98 405
1/28/98 410
1/29/98 407
1/30/98 404
2/2/98 400
2/3/98 407
2/4/98 403
2/5/98 401
2/6/98 411
2/9/98 410
2/10/98 411
2/11/98 411
2/12/98 410
2/13/98 406
2/17/98 411
2/18/98 409
2/19/98 406
2/20/98 397
2/23/98 396
2/24/98 396
2/25/98 390
2/26/98 385
2/27/98 388
3/2/98 396
3/3/98 392
3/4/98 402
3/5/98 395
3/6/98 395
3/9/98 400
3/10/98 394
3/11/98 398
3/12/98 401
3/13/98 397
3/16/98 394
3/17/98 395
3/18/98 388
3/19/98 395
3/20/98 394
3/23/98 394
3/24/98 388
3/25/98 392
3/27/98 397
3/30/98 401
3/31/98 413
4/1/98 437
4/2/98 430
4/3/98 422
4/6/98 421
4/7/98 418
4/8/98 415
4/9/98 413
4/13/98 413
4/14/98 411
4/15/98 419
4/16/98 420
4/17/98 422
4/20/98 413
4/21/98 413
4/22/98 410
4/23/98 416
4/24/98 427
4/27/98 431
4/28/98 428
4/29/98 422
4/30/98 423
5/1/98 423
5/4/98 427
5/5/98 437
5/6/98 435
5/7/98 434
5/8/98 433
5/11/98 450
5/12/98 445
5/13/98 443
5/14/98 436
5/15/98 471
5/18/98 467
5/19/98 457
5/20/98 451
5/21/98 457
5/22/98 469
5/26/98 480
5/27/98 488
5/28/98 473
5/29/98 477
6/1/98 488
6/2/98 462
6/3/98 457
6/4/98 451
6/5/98 452
6/8/98 458
6/9/98 461
6/10/98 476
6/11/98 502
6/12/98 497
6/15/98 517
6/16/98 502
6/17/98 479
6/18/98 490
6/19/98 486
6/22/98 488
6/23/98 486
6/24/98 490
6/25/98 498
6/26/98 514
6/29/98 510
6/30/98 504
7/1/98 489
7/2/98 489
7/6/98 500
7/7/98 487
7/8/98 472
7/9/98 481
7/10/98 465
7/13/98 449
7/14/98 440
7/15/98 450
7/16/98 435
7/17/98 434
7/20/98 428
7/21/98 440
7/22/98 441
7/23/98 452
7/24/98 451
7/27/98 453
7/28/98 456
7/29/98 453
7/30/98 452
7/31/98 453
8/3/98 465
8/4/98 485
8/5/98 482
8/6/98 485
8/7/98 528
8/10/98 571
8/11/98 555
8/12/98 577
8/13/98 520
8/14/98 511
8/17/98 572
8/18/98 568
8/19/98 577
8/20/98 644
8/21/98 810
8/24/98 793
8/25/98 726
8/26/98 771
8/27/98 986
8/28/98 899
8/31/98 976
9/1/98 746
9/2/98 855
9/3/98 896
9/4/98 890
9/8/98 855
9/9/98 886
9/10/98 1070
9/11/98 1004
9/14/98 1002
9/15/98 834
9/16/98 772
9/17/98 864
9/18/98 804
9/21/98 815
9/22/98 721
9/23/98 624
9/24/98 710
9/25/98 673
9/28/98 685
9/29/98 668
9/30/98 723
10/1/98 777
10/2/98 679
10/5/98 721
10/6/98 689
10/7/98 699
10/8/98 670
10/9/98 613
10/13/98 581
10/14/98 612
10/15/98 560
10/16/98 604
10/19/98 607
10/20/98 597
10/21/98 604
10/22/98 614
10/23/98 631
10/26/98 636
10/27/98 651
10/28/98 675
10/29/98 687
10/30/98 651
11/2/98 587
11/3/98 599
11/4/98 606
11/5/98 595
11/9/98 608
11/10/98 620
11/11/98 620
11/12/98 632
11/13/98 632
11/16/98 626
11/17/98 626
11/18/98 642
11/19/98 632
11/20/98 573
11/23/98 573
11/24/98 580
11/25/98 582
11/27/98 570
11/30/98 601
12/1/98 610
12/2/98 616
12/3/98 642
12/4/98 624
12/7/98 613
12/8/98 619
12/9/98 622
12/10/98 634
12/11/98 629
12/14/98 660
12/15/98 625
12/16/98 639
12/17/98 639
12/18/98 639
12/21/98 615
12/22/98 587
12/23/98 584
12/24/98 584
12/28/98 597
12/29/98 586
12/30/98 592
12/31/98 590
1/4/99 587
1/5/99 568
1/6/99 577
1/7/99 585
1/8/99 586
1/11/99 610
1/12/99 649
1/13/99 802
1/14/99 899
1/15/99 713
1/19/99 691
1/20/99 686
1/21/99 754
1/22/99 759
1/25/99 773
1/26/99 730
1/27/99 720
1/28/99 710
1/29/99 695
2/1/99 664
2/2/99 649
2/3/99 650
2/4/99 665
2/5/99 667
2/8/99 670
2/9/99 676
2/10/99 668
2/11/99 646
2/12/99 641
2/16/99 631
2/17/99 660
2/18/99 660
2/19/99 667
2/22/99 666
2/23/99 675
2/24/99 657
2/25/99 661
2/26/99 668
3/1/99 656
3/2/99 673
3/3/99 666
3/4/99 641
3/5/99 641
3/8/99 653
3/9/99 657
3/10/99 641
3/11/99 639
3/12/99 625
3/15/99 618
3/16/99 626
3/17/99 628
3/18/99 618
3/19/99 613
3/22/99 613
3/23/99 625
3/24/99 621
3/25/99 626
3/26/99 622
3/29/99 628
3/30/99 638
3/31/99
4/1/99
<CAPTION>
MEXICO 11.5%
[GRAPH]
In the printed version of the document, a line graph appears which depicts
the following plot points:
Date Spread
<S> <C>
5/21/97 349
5/22/97 347
5/23/97 336
5/27/97 335
5/28/97 332
5/29/97 331
5/30/97 330
6/2/97 328
6/3/97 325
6/4/97 334
6/5/97 328
6/6/97 328
6/9/97 332
6/10/97 327
6/11/97 319
6/12/97 319
6/13/97 318
6/16/97 314
6/17/97 311
6/18/97 304
6/19/97 306
6/20/97 310
6/23/97 313
6/24/97 315
6/25/97 331
6/26/97 327
6/27/97 319
6/30/97 324
7/1/97 326
7/2/97 327
7/3/97 313
7/7/97 309
7/8/97 307
7/9/97 307
7/10/97 313
7/11/97 302
7/14/97 307
7/15/97 298
7/16/97 297
7/17/97 296
7/18/97 286
7/21/97 281
7/22/97 288
7/23/97 290
7/24/97 281
7/25/97 287
7/28/97 278
7/29/97 286
7/30/97 303
7/31/97 290
8/1/97 288
8/4/97 286
8/5/97 287
8/6/97 287
8/7/97 293
8/8/97 292
8/11/97 296
8/12/97 301
8/13/97 297
8/14/97 292
8/15/97 294
8/18/97 299
8/19/97 297
8/20/97 301
8/21/97 301
8/22/97 301
8/25/97 303
8/26/97 315
8/27/97 315
8/28/97 320
8/29/97 333
9/2/97 310
9/3/97 310
9/4/97 310
9/5/97 308
9/8/97 308
9/9/97 303
9/10/97 306
9/11/97 308
9/12/97 298
9/15/97 299
9/16/97 293
9/17/97 283
9/18/97 286
9/19/97 286
9/22/97 280
9/23/97 292
9/24/97 289
9/25/97 290
9/26/97 292
9/29/97 294
9/30/97 286
10/1/97 296
10/2/97 296
10/3/97 292
10/6/97 294
10/7/97 324
10/8/97 354
10/9/97 488
10/10/97 420
10/14/97 448
10/15/97 477
10/16/97 457
10/17/97 407
10/20/97 385
10/21/97 395
10/22/97 425
10/23/97 444
10/24/97 440
10/27/97 456
10/28/97 472
10/29/97 449
10/30/97 436
10/31/97 421
11/3/97 425
11/4/97 418
11/5/97 405
11/6/97 388
11/7/97 391
11/10/97 390
11/12/97 383
11/13/97 381
11/14/97 379
11/17/97 388
11/18/97 350
11/20/97 359
11/21/97 349
11/24/97 347
11/25/97 349
11/26/97 357
12/1/97 378
12/2/97 386
12/3/97 404
12/4/97 392
12/5/97 388
12/8/97 383
12/9/97 393
12/10/97 404
12/11/97 399
12/12/97 395
12/15/97 391
12/16/97 388
12/17/97 384
12/18/97 376
12/19/97 368
12/22/97 367
12/23/97 367
12/24/97 368
12/26/97 377
12/29/97 386
12/30/97 380
12/31/97 391
1/2/98 403
1/5/98 416
1/6/98 402
1/7/98 396
1/8/98 400
1/9/98 388
1/12/98 390
1/13/98 393
1/14/98 395
1/15/98 393
1/16/98 384
1/20/98 385
1/21/98 373
1/22/98 372
1/23/98 366
1/26/98 361
1/27/98 350
1/28/98 351
1/29/98 347
1/30/98 347
2/2/98 342
2/3/98 344
2/4/98 341
2/5/98 340
2/6/98 347
2/9/98 350
2/10/98 354
2/11/98 357
2/12/98 356
2/13/98 354
2/17/98 356
2/18/98 350
2/19/98 351
2/20/98 344
2/23/98 339
2/24/98 338
2/25/98 334
2/26/98 332
2/27/98 334
3/2/98 340
3/3/98 336
3/4/98 343
3/5/98 340
3/6/98 344
3/9/98 349
3/10/98 344
3/11/98 347
3/12/98 350
3/13/98 337
3/16/98 330
3/17/98 334
3/18/98 326
3/19/98 334
3/20/98 338
3/23/98 336
3/24/98 331
3/25/98 336
3/27/98 343
3/30/98 350
3/31/98 358
4/1/98 376
4/2/98 370
4/3/98 359
4/6/98 352
4/7/98 349
4/8/98 345
4/9/98 341
4/13/98 340
4/14/98 340
4/15/98 345
4/16/98 345
4/17/98 345
4/20/98 342
4/21/98 339
4/22/98 339
4/23/98 344
4/24/98 357
4/27/98 356
4/28/98 351
4/29/98 351
4/30/98 350
5/1/98 350
5/4/98 353
5/5/98 361
5/6/98 360
5/7/98 358
5/8/98 359
5/11/98 372
5/12/98 371
5/13/98 373
5/14/98 367
5/15/98 391
5/18/98 389
5/19/98 385
5/20/98 384
5/21/98 387
5/22/98 396
5/26/98 406
5/27/98 414
5/28/98 395
5/29/98 401
6/1/98 408
6/2/98 394
6/3/98 388
6/4/98 382
6/5/98 377
6/8/98 383
6/9/98 384
6/10/98 397
6/11/98 423
6/12/98 421
6/15/98 439
6/16/98 436
6/17/98 414
6/18/98 433
6/19/98 431
6/22/98 434
6/23/98 433
6/24/98 436
6/25/98 442
6/26/98 463
6/29/98 458
6/30/98 451
7/1/98 443
7/2/98 444
7/6/98 460
7/7/98 444
7/8/98 433
7/9/98 439
7/10/98 425
7/13/98 414
7/14/98 402
7/15/98 402
7/16/98 391
7/17/98 386
7/20/98 381
7/21/98 395
7/22/98 395
7/23/98 405
7/24/98 410
7/27/98 407
7/28/98 406
7/29/98 405
7/30/98 406
7/31/98 411
8/3/98 421
8/4/98 437
8/5/98 436
8/6/98 443
8/7/98 491
8/10/98 537
8/11/98 538
8/12/98 574
8/13/98 506
8/14/98 503
8/17/98 558
8/18/98 540
8/19/98 561
8/20/98 641
8/21/98 764
8/24/98 750
8/25/98 655
8/26/98 673
8/27/98 859
8/28/98 795
8/31/98 851
9/1/98 740
9/2/98 750
9/3/98 789
9/4/98 767
9/8/98 754
9/9/98 780
9/10/98 883
9/11/98 853
9/14/98 876
9/15/98 779
9/16/98 689
9/17/98 754
9/18/98 730
9/21/98 766
9/22/98 694
9/23/98 627
9/24/98 669
9/25/98 653
9/28/98 681
9/29/98 659
9/30/98 722
10/1/98 762
10/2/98 703
10/5/98 747
10/6/98 711
10/7/98 698
10/8/98 676
10/9/98 637
10/13/98 614
10/14/98 639
10/15/98 605
10/16/98 631
10/19/98 630
10/20/98 614
10/21/98 615
10/22/98 605
10/23/98 605
10/26/98 616
10/27/98 635
10/28/98 652
10/29/98 663
10/30/98 635
11/2/98 582
11/3/98 580
11/4/98 564
11/5/98 555
11/9/98 558
11/10/98 572
11/11/98 572
11/12/98 593
11/13/98 586
11/16/98 574
11/17/98 568
11/18/98 570
11/19/98 557
11/20/98 539
11/23/98 539
11/24/98 550
11/25/98 553
11/27/98 548
11/30/98 575
12/1/98 595
12/2/98 610
12/3/98 626
12/4/98 618
12/7/98 608
12/8/98 606
12/9/98 602
12/10/98 608
12/11/98 604
12/14/98 633
12/15/98 605
12/16/98 609
12/17/98 606
12/18/98 606
12/21/98 583
12/22/98 577
12/23/98 566
12/24/98 566
12/28/98 580
12/29/98 568
12/30/98 574
12/31/98 572
1/4/99 574
1/5/99 536
1/6/99 549
1/7/99 547
1/8/99 550
1/11/99 564
1/12/99 622
1/13/99 721
1/14/99 723
1/15/99 619
1/19/99 574
1/20/99 570
1/21/99 608
1/22/99 617
1/25/99 632
1/26/99 615
1/27/99 619
1/28/99 599
1/29/99 587
2/1/99 567
2/2/99 564
2/3/99 579
2/4/99 577
2/5/99 590
2/8/99 597
2/9/99 598
2/10/99 585
2/11/99 569
2/12/99 551
2/16/99 546
2/17/99 560
2/18/99 557
2/19/99 559
2/22/99 556
2/23/99 558
2/24/99 555
2/25/99 548
2/26/99 540
3/1/99 535
3/2/99 541
3/3/99 546
3/4/99 533
3/5/99 520
3/8/99 533
3/9/99 531
3/10/99 525
3/11/99 513
3/12/99 499
3/15/99 485
3/16/99 490
3/17/99 490
3/18/99 489
3/19/99 478
3/22/99 480
3/23/99 483
3/24/99 496
3/25/99 487
3/26/99 489
3/29/99 481
3/30/99 485
3/31/99
4/1/99
<CAPTION>
BRAZIL 10.125%
[GRAPH]
In the printed version of the document, a line graph appears which depicts
the following plot points:
Date Spread
<S> <C>
5/21/97 384
5/22/97 382
5/23/97 375
5/27/97 373
5/28/97 378
5/29/97 386
5/30/97 385
6/2/97 382
6/3/97 381
6/4/97 388
6/5/97 382
6/6/97 383
6/9/97 382
6/10/97 383
6/11/97 381
6/12/97 379
6/13/97 379
6/16/97 376
6/17/97 374
6/18/97 371
6/19/97 367
6/20/97 367
6/23/97 372
6/24/97 374
6/25/97 394
6/26/97 393
6/27/97 388
6/30/97 398
7/1/97 396
7/2/97 397
7/3/97 389
7/7/97 384
7/8/97 382
7/9/97 382
7/10/97 381
7/11/97 374
7/14/97 381
7/15/97 371
7/16/97 374
7/17/97 378
7/18/97 368
7/21/97 361
7/22/97 357
7/23/97 366
7/24/97 357
7/25/97 364
7/28/97 361
7/29/97 366
7/30/97 381
7/31/97 374
8/1/97 370
8/4/97 372
8/5/97 372
8/6/97 373
8/7/97 374
8/8/97 370
8/11/97 380
8/12/97 390
8/13/97 385
8/14/97 381
8/15/97 381
8/18/97 383
8/19/97 374
8/20/97 382
8/21/97 377
8/22/97 374
8/25/97 373
8/26/97 384
8/27/97 385
8/28/97 395
8/29/97 404
9/2/97 381
9/3/97 384
9/4/97 378
9/5/97 381
9/8/97 384
9/9/97 380
9/10/97 382
9/11/97 381
9/12/97 377
9/15/97 378
9/16/97 371
9/17/97 359
9/18/97 363
9/19/97 360
9/22/97 356
9/23/97 368
9/24/97 370
9/25/97 372
9/26/97 373
9/29/97 371
9/30/97 362
10/1/97 369
10/2/97 371
10/3/97 367
10/6/97 363
10/7/97 396
10/8/97 429
10/9/97 602
10/10/97 583
10/14/97 665
10/15/97 609
10/16/97 682
10/17/97 620
10/20/97 562
10/21/97 578
10/22/97 617
10/23/97 651
10/24/97 646
10/27/97 678
10/28/97 710
10/29/97 683
10/30/97 636
10/31/97 607
11/3/97 619
11/4/97 590
11/5/97 577
11/6/97 547
11/7/97 578
11/10/97 572
11/12/97 551
11/13/97 548
11/14/97 546
11/17/97 536
11/18/97 507
11/20/97 504
11/21/97 474
11/24/97 460
11/25/97 468
11/26/97 487
12/1/97 527
12/2/97 560
12/3/97 570
12/4/97 537
12/5/97 529
12/8/97 515
12/9/97 541
12/10/97 566
12/11/97 553
12/12/97 539
12/15/97 533
12/16/97 526
12/17/97 519
12/18/97 499
12/19/97 493
12/22/97 492
12/23/97 492
12/24/97 493
12/26/97 510
12/29/97 533
12/30/97 528
12/31/97 542
1/2/98 559
1/5/98 583
1/6/98 549
1/7/98 543
1/8/98 560
1/9/98 538
1/12/98 544
1/13/98 550
1/14/98 556
1/15/98 551
1/16/98 541
1/20/98 534
1/21/98 519
1/22/98 523
1/23/98 511
1/26/98 503
1/27/98 488
1/28/98 489
1/29/98 481
1/30/98 480
2/2/98 473
2/3/98 474
2/4/98 470
2/5/98 469
2/6/98 472
2/9/98 476
2/10/98 479
2/11/98 481
2/12/98 477
2/13/98 474
2/17/98 475
2/18/98 469
2/19/98 470
2/20/98 466
2/23/98 461
2/24/98 460
2/25/98 452
2/26/98 451
2/27/98 453
3/2/98 462
3/3/98 458
3/4/98 462
3/5/98 457
3/6/98 454
3/9/98 448
3/10/98 444
3/11/98 441
3/12/98 444
3/13/98 434
3/16/98 431
3/17/98 437
3/18/98 424
3/19/98 433
3/20/98 434
3/23/98 427
3/24/98 422
3/25/98 425
3/27/98 433
3/30/98 438
3/31/98 449
4/1/98 472
4/2/98 463
4/3/98 451
4/6/98 446
4/7/98 442
4/8/98 439
4/9/98 435
4/13/98 432
4/14/98 433
4/15/98 445
4/16/98 446
4/17/98 448
4/20/98 443
4/21/98 447
4/22/98 443
4/23/98 451
4/24/98 468
4/27/98 464
4/28/98 458
4/29/98 450
4/30/98 452
5/1/98 453
5/4/98 460
5/5/98 471
5/6/98 471
5/7/98 471
5/8/98 475
5/11/98 490
5/12/98 489
5/13/98 485
5/14/98 480
5/15/98 522
5/18/98 515
5/19/98 509
5/20/98 500
5/21/98 510
5/22/98 523
5/26/98 535
5/27/98 550
5/28/98 527
5/29/98 539
6/1/98 553
6/2/98 524
6/3/98 525
6/4/98 517
6/5/98 518
6/8/98 530
6/9/98 534
6/10/98 557
6/11/98 588
6/12/98 581
6/15/98 608
6/16/98 593
6/17/98 566
6/18/98 586
6/19/98 586
6/22/98 592
6/23/98 588
6/24/98 595
6/25/98 618
6/26/98 654
6/29/98 639
6/30/98 630
7/1/98 608
7/2/98 616
7/6/98 643
7/7/98 632
7/8/98 612
7/9/98 607
7/10/98 584
7/13/98 567
7/14/98 553
7/15/98 564
7/16/98 549
7/17/98 542
7/20/98 531
7/21/98 541
7/22/98 539
7/23/98 560
7/24/98 567
7/27/98 580
7/28/98 583
7/29/98 573
7/30/98 570
7/31/98 566
8/3/98 587
8/4/98 608
8/5/98 614
8/6/98 625
8/7/98 697
8/10/98 769
8/11/98 764
8/12/98 814
8/13/98 748
8/14/98 712
8/17/98 790
8/18/98 778
8/19/98 820
8/20/98 911
8/21/98 1061
8/24/98 1077
8/25/98 1002
8/26/98 1084
8/27/98 1316
8/28/98 1208
8/31/98 1288
9/1/98 1113
9/2/98 1176
9/3/98 1206
9/4/98 1267
9/8/98 1217
9/9/98 1252
9/10/98 1489
9/11/98 1392
9/14/98 1416
9/15/98 1235
9/16/98 1131
9/17/98 1299
9/18/98 1228
9/21/98 1255
9/22/98 1152
9/23/98 1075
9/24/98 1151
9/25/98 1119
9/28/98 1119
9/29/98 1122
9/30/98 1200
10/1/98 1278
10/2/98 1180
10/5/98 1268
10/6/98 1194
10/7/98 1184
10/8/98 1140
10/9/98 1059
10/13/98 964
10/14/98 1004
10/15/98 922
10/16/98 975
10/19/98 977
10/20/98 929
10/21/98 957
10/22/98 937
10/23/98 939
10/26/98 974
10/27/98 1,023
10/28/98 1,070
10/29/98 1,075
10/30/98 1,023
11/2/98 936
11/3/98 929
11/4/98 907
11/5/98 841
11/9/98 867
11/10/98 908
11/11/98 908
11/12/98 942
11/13/98 938
11/16/98 899
11/17/98 872
11/18/98 883
11/19/98 849
11/20/98 825
11/23/98 825
11/24/98 842
11/25/98 846
11/27/98 828
11/30/98 861
12/1/98 886
12/2/98 921
12/3/98 1008
12/4/98 1013
12/7/98 984
12/8/98 977
12/9/98 982
12/10/98 1,004
12/11/98 1026
12/14/98 1,094
12/15/98 1036
12/16/98 1064
12/17/98 1081
12/18/98 1081
12/21/98 1030
12/22/98 1,017
12/23/98 1,019
12/24/98 1,019
12/28/98 1,042
12/29/98 1,032
12/30/98 1,037
12/31/98 1,036
1/4/99 994
1/5/99 953
1/6/99 1,001
1/7/99 1,034
1/8/99 1,064
1/11/99 1,103
1/12/99 1,184
1/13/99 1,368
1/14/99 1,429
1/15/99 1,123
1/19/99 1,059
1/20/99 1,049
1/21/99 1,187
1/22/99 1,279
1/25/99 1,315
1/26/99 1,194
1/27/99 1,245
1/28/99 1,177
1/29/99 1,177
2/1/99 1,078
2/2/99 1,056
2/3/99 1,048
2/4/99 1,059
2/5/99 1,062
2/8/99 1,062
2/9/99 1,077
2/10/99 1,064
2/11/99 1,040
2/12/99 1,027
2/16/99 971
2/17/99 973
2/18/99 965
2/19/99 976
2/22/99 980
2/23/99 1,007
2/24/99 999
2/25/99 1,050
2/26/99 1,047
3/1/99 1,045
3/2/99 1,115
3/3/99 1,146
3/4/99 1,090
3/5/99 1,033
3/8/99 1,029
3/9/99 1,011
3/10/99 985
3/11/99 985
3/12/99 989
3/15/99 950
3/16/99 954
3/17/99 958
3/18/99 933
3/19/99 933
3/22/99 927
3/23/99 941
3/24/99 957
3/25/99 919
3/26/99 913
3/29/99 873
3/30/99 869
3/31/99
4/1/99
<CAPTION>
VENEZUELA 9.25%
[GRAPH]
In the printed version of the document, a line graph appears which depicts
the following plot points:
Date Spread
<S> <C>
8/25/97 337
8/26/97 349
8/27/97 351
8/28/97 342
8/29/97 342
9/2/97 344
9/3/97 345
9/4/97 346
9/5/97 346
9/8/97 349
9/9/97 345
9/10/97 347
9/11/97 347
9/12/97 343
9/15/97 344
9/16/97 337
9/17/97 334
9/18/97 333
9/19/97 332
9/22/97 330
9/23/97 340
9/24/97 343
9/25/97 341
9/26/97 339
9/29/97 342
9/30/97 343
10/1/97 342
10/2/97 341
10/3/97 333
10/6/97 338
10/7/97 371
10/8/97 403
10/9/97 592
10/10/97 592
10/14/97 552
10/15/97 549
10/16/97 499
10/17/97 460
10/20/97 414
10/21/97 457
10/22/97 478
10/23/97 514
10/24/97 529
10/27/97 548
10/28/97 567
10/29/97 528
10/30/97 528
10/31/97 505
11/3/97 514
11/4/97 482
11/5/97 478
11/6/97 451
11/7/97 484
11/10/97 475
11/12/97 475
11/13/97 469
11/14/97 462
11/17/97 450
11/18/97 439
11/20/97 439
11/21/97 435
11/24/97 421
11/25/97 427
11/26/97 441
12/1/97 475
12/2/97 495
12/3/97 512
12/4/97 478
12/5/97 479
12/8/97 486
12/9/97 497
12/10/97 509
12/11/97 509
12/12/97 509
12/15/97 500
12/16/97 490
12/17/97 481
12/18/97 452
12/19/97 449
12/22/97 449
12/23/97 449
12/24/97 449
12/26/97 470
12/29/97 497
12/30/97 473
12/31/97 514
1/2/98 531
1/5/98 537
1/6/98 534
1/7/98 539
1/8/98 554
1/9/98 530
1/12/98 530
1/13/98 531
1/14/98 531
1/15/98 531
1/16/98 531
1/20/98 519
1/21/98 511
1/22/98 512
1/23/98 500
1/26/98 486
1/27/98 480
1/28/98 484
1/29/98 476
1/30/98 470
2/2/98 454
2/3/98 458
2/4/98 457
2/5/98 455
2/6/98 472
2/9/98 473
2/10/98 476
2/11/98 478
2/12/98 477
2/13/98 473
2/17/98 473
2/18/98 477
2/19/98 478
2/20/98 468
2/23/98 459
2/24/98 459
2/25/98 451
2/26/98 444
2/27/98 450
3/2/98 458
3/3/98 453
3/4/98 456
3/5/98 452
3/6/98 455
3/9/98 453
3/10/98 450
3/11/98 452
3/12/98 458
3/13/98 445
3/16/98 444
3/17/98 441
3/18/98 417
3/19/98 432
3/20/98 430
3/23/98 426
3/24/98 418
3/25/98 425
3/27/98 435
3/30/98 441
3/31/98 452
4/1/98 474
4/2/98 467
4/3/98 458
4/6/98 455
4/7/98 452
4/8/98 449
4/9/98 446
4/13/98 454
4/14/98 466
4/15/98 471
4/16/98 469
4/17/98 467
4/20/98 461
4/21/98 461
4/22/98 461
4/23/98 466
4/24/98 474
4/27/98 472
4/28/98 470
4/29/98 463
4/30/98 462
5/1/98 461
5/4/98 470
5/5/98 481
5/6/98 477
5/7/98 481
5/8/98 485
5/11/98 496
5/12/98 490
5/13/98 486
5/14/98 482
5/15/98 514
5/18/98 516
5/19/98 514
5/20/98 509
5/21/98 513
5/22/98 524
5/26/98 535
5/27/98 540
5/28/98 530
5/29/98 532
6/1/98 540
6/2/98 520
6/3/98 518
6/4/98 513
6/5/98 510
6/8/98 515
6/9/98 525
6/10/98 537
6/11/98 564
6/12/98 567
6/15/98 600
6/16/98 586
6/17/98 559
6/18/98 593
6/19/98 594
6/22/98 596
6/23/98 587
6/24/98 597
6/25/98 611
6/26/98 642
6/29/98 641
6/30/98 656
7/1/98 658
7/2/98 680
7/6/98 743
7/7/98 746
7/8/98 747
7/9/98 768
7/10/98 750
7/13/98 746
7/14/98 711
7/15/98 702
7/16/98 674
7/17/98 667
7/20/98 662
7/21/98 675
7/22/98 692
7/23/98 728
7/24/98 744
7/27/98 770
7/28/98 788
7/29/98 806
7/30/98 810
7/31/98 809
8/3/98 823
8/4/98 851
8/5/98 858
8/6/98 886
8/7/98 1020
8/10/98 1176
8/11/98 1134
8/12/98 1187
8/13/98 1010
8/14/98 1027
8/17/98 1133
8/18/98 1110
8/19/98 1323
8/20/98 1509
8/21/98 1491
8/24/98 1425
8/25/98 1393
8/26/98 1479
8/27/98 2051
8/28/98 1712
8/31/98 1792
9/1/98 1547
9/2/98 1734
9/3/98 1833
9/4/98 1813
9/8/98 1699
9/9/98 1686
9/10/98 1840
9/11/98 1777
9/14/98 1734
9/15/98 1641
9/16/98 1452
9/17/98 1575
9/18/98 1498
9/21/98 1457
9/22/98 1397
9/23/98 1222
9/24/98 1280
9/25/98 1216
9/28/98 1171
9/29/98 1159
9/30/98 1223
10/1/98 1207
10/2/98 1129
10/5/98 1190
10/6/98 1151
10/7/98 1114
10/8/98 1020
10/9/98 971
10/13/98 977
10/14/98 984
10/15/98 951
10/16/98 997
10/19/98 982
10/20/98 953
10/21/98 1002
10/22/98 1,034
10/23/98 1,038
10/26/98 1,061
10/27/98 1,066
10/28/98 1,106
10/29/98 1,097
10/30/98 1,066
11/2/98 986
11/3/98 989
11/4/98 972
11/5/98 946
11/9/98 1027
11/10/98 1058
11/11/98 1058
11/12/98 1159
11/13/98 1,162
11/16/98 1122
11/17/98 1,096
11/18/98 1,111
11/19/98 1071
11/20/98 1065
11/23/98 1065
11/24/98 1091
11/25/98 1191
11/27/98 1133
11/30/98 1,212
12/1/98 1470
12/2/98 1170
12/3/98 1196
12/4/98 1175
12/7/98 1,155
12/8/98 1,083
12/9/98 1,119
12/10/98 1,170
12/11/98 1177
12/14/98 1,196
12/15/98 1147
12/16/98 1152
12/17/98 1144
12/18/98 1144
12/21/98 1148
12/22/98 1,122
12/23/98 1,101
12/24/98 1,101
12/28/98 1,126
12/29/98 1,103
12/30/98 1,108
12/31/98 1,107
1/4/99 1,009
1/5/99 984
1/6/99 970
1/7/99 1,038
1/8/99 1,017
1/11/99 1,051
1/12/99 1,100
1/13/99 1,273
1/14/99 1,324
1/15/99 1,112
1/19/99 1,210
1/20/99 1,176
1/21/99 1,181
1/22/99 1,217
1/25/99 1,206
1/26/99 1,153
1/27/99 1,168
1/28/99 1,113
1/29/99 1,106
2/1/99 1,108
2/2/99 1,114
2/3/99 1,111
2/4/99 1,111
2/5/99 1,145
2/8/99 1,145
2/9/99 1,104
2/10/99 1,070
2/11/99 1,100
2/12/99 1,112
2/16/99 1,108
2/17/99 1,149
2/18/99 1,151
2/19/99 1,114
2/22/99 1,145
2/23/99 1,117
2/24/99 1121
2/25/99 1,097
2/26/99 1,090
3/1/99 1,100
3/2/99 1,127
3/3/99 1,151
3/4/99 1,141
3/5/99 1,156
3/8/99 1,183
3/9/99 1,188
3/10/99 1,128
3/11/99 1,085
3/12/99 1,075
3/15/99 1,068
3/16/99 1,086
3/17/99 1,095
3/18/99 1,090
3/19/99 1,087
3/22/99 1,087
3/23/99 1,106
3/24/99 1,099
3/25/99 1,098
3/26/99 1,097
3/29/99 1,045
3/30/99 1,014
3/31/99
4/1/99
</TABLE>
Source: Deutsche Bank Research
18
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
PORTFOLIO SUMMARY AS OF 3/30/99
<TABLE>
<CAPTION>
COUNTRY % OF MSCI INDEX % EQUITIES % DEBT % PRIVATE PLACEMENT % CASH
<S> <C> <C> <C> <C> <C>
Argentina 12.6 4.9 9.1 3.6 0.0
Brazil 29.4 16.9 5.9 0.0 0.1
Chile 13.6 7.4 0.0 0.0 0.0
Colombia 1.7 0.0 2.2 0.0 0.0
Costa Rica 0.0 0.0 0.4 0.0 0.0
Equador 0.0 0.0 1.3 0.0 0.0
Latin America 0.0 0.0 0.0 4.4 0.0
Mexico 37.8 16.8 7.4 0.0 0.0
Panama 0.0 0.0 1.4 0.0 0.0
Peru 2.7 1.7 1.6 0.6 0.0
Venezuela 2.2 0.0 6.1 0.3 0.0
United States 0.0 0.0 0.0 0.5 7.5
---- ---- ---- ---- ----
TOTAL 100.0 47.7 35.4 9.4 7.6
</TABLE>
19
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.
POLICY AND MARKET OUTLOOK
- - At this point, Latin America's capital markets' prospects rest largely on
events in Brazil; forced debt rescheduling and/or capital controls could
destabilize the region for some time
- - Growth will slow and is unlikely to recover for some time; savings need to
be generated to finance fiscal and external balances
- - Despite all the bad news, at least the latest Brazilian crisis has had
limited contagion effects (so far)
- - Leverage in the system is low, and valuations are very low
- - Maintain high exposure to bonds to differentiate and offer a balanced Fund
- - High yields on sovereign debt look compelling and will likely lead any
equity market rally
20
