LATIN AMERICA INVESTMENT FUND INC, N-30D, 1999-08-31

LATIN AMERICA INVESTMENT FUND INC
N-30D, 1999-08-31

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<PAGE>

The Latin American
Investment Fund, Inc.
- ---------------------
SEMI-ANNUAL REPORT
JUNE 30, 1999

[PHOTO]

<PAGE>
CONTENTS

<TABLE>
<S> <C>
Letter to Shareholders........................................................................ 1

Portfolio Summary............................................................................. 7

Schedule of Investments....................................................................... 9

Statement of Assets and Liabilities........................................................... 14

Statement of Operations....................................................................... 15

Statement of Changes in Net Assets............................................................ 16

Financial Highlights.......................................................................... 17

Notes to Financial Statements................................................................. 19

Results of Annual Meeting of Shareholders..................................................... 25

Description of InvestLink-SM- Program......................................................... 26
</TABLE>

PICTURED ON THE COVER IS PALENQUE, ONE OF THE MOST BEAUTIFUL MAYAN RUINS. IT IS
LOCATED IN PALENQUE NATIONAL PARK IN THE STATE OF CHIAPAS, MEXICO.

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<PAGE>
LETTER TO SHAREHOLDERS

August 5, 1999

DEAR SHAREHOLDER:

I am writing to report on the activities of The Latin America Investment Fund,
Inc. (the "Fund") for the six months ended June 30, 1999.

At June 30, 1999, the Fund's net assets were approximately $100.0 million. The
Fund's net asset value ("NAV") was $14.64 per share, as compared to $11.49 at
December 31, 1998.

PERFORMANCE: EFFECTIVE CHOICES IN MEXICO, ARGENTINA AND COLOMBIA

For the six months ended June 30, 1999, the Fund's total return, based on NAV
was 27.4%. By comparison, the Morgan Stanley Capital International Emerging
Markets Free Latin America Index ("EMFLA") rose by 31.0% over the same period.

As the Fund invests a substantial portion of assets (around 33%) in Latin
American fixed income, however, a more realistic performance benchmark would be
one that proportionately blends the returns of Latin American fixed income and
equity indices. Utilizing the Latin component of J.P. Morgan's Emerging Markets
Bond Index Plus ("EMBI+") and EMFLA in this way, the Fund's blended benchmark
would have returned approximately 22.4% during the first half of 1999, versus
the Fund's 27.4%.

Overall performance on the equity side gained most from positions in Mexico and
Argentina, as well as stock selection more generally:

- - I overweighted Mexico relative to EMFLA during a period in which, by far,
Mexico was the strongest Latin American market. Mexican stock selection
emphasized companies well-positioned to prosper as the domestic economy
recovered.

- - My underweight in Argentina proved effective during the second quarter, when
investor interest declined following the elimination of YPF Sociedad Anonima
(the nation's biggest oil and gas company and most liquid stock) from trading
due to its acquisition by Spain's Repsol.

The Fund's fixed income holdings, which amounted to roughly a third of the
portfolio at June 30, generated a return meaningfully higher than that of
EMBI+'s Latin component. Within the fixed income allocation, for which Salomon
Brothers Asset Management Inc. serves as adviser to the Fund, three country
weighting decisions were particularly successful:

- - Overweighting Venezuela, which returned nearly 21% and was, by far, the
period's best-performing Latin debt market.

- - Underweighting Argentina and Ecuador, which were the weakest Latin debt
markets. Ecuador, which declined over 8%, was also the only Latin debt market
to generate a negative return during the period.

- --------------------------------------------------------------------------------
1
<PAGE>
LETTER TO SHAREHOLDERS

LATIN AMERICA: FROM RALLY TO RECOVERY?

EQUITIES. The impressive rally in Latin American equity markets over the first
half of this year was driven by improved sovereign risk, stronger commodity
prices, falling interest rates and generally positive macroeconomic
fundamentals. All of these conditions had been missing for some time, and their
reemergence was warmly received by investors.

The first stage of the equity rally ended in mid-May, with an ensuing correction
fueled by profit-taking and concerns about the potential for higher U.S.
interest rates. Investors returned to Latin markets in mid-June, however,
igniting a second rally phase, one more focused on corporate performance and
less on the excessively low valuations that had stimulated the first.

- - As mentioned earlier, Mexico (+52.3%) was the year's best-performing Latin
market through June. In addition to its very strong macroeconomic
fundamentals, Mexico benefited in the second quarter from an unusual financial
aid package from global lenders like the International Monetary Fund ("IMF").

The package was unusual in that, perhaps for the first time, the lenders
provided it on a proactive, rather than a reactive, basis. This approach
allowed investors to ignore some of the inevitable political noise about crime
and corruption preceding next year's presidential election and focus instead
on Mexico's economic outlook, which was (and is) very positive.

- - Although Brazil generated a healthy 18.7% return in the first half, there is
some cause for concern. Deteriorating economic fundamentals increasingly
suggest that the country will be unable to meet its IMF-mandated economic
targets for 1999. However, investor sentiment has been buoyed by the central
bank's aggressive interest-rate cuts (I.E., from a high of 45% in early March
to 21% at the end of June) and the belief that the Brazilian market still
offers substantial value that is--as yet--largely unrealized.

- - Chilean stocks (+28.7%) rose on the strength of major interest-rate cuts, a
recovery in the price of copper (+10% year-to-date through June) and the
government's announcement of an emergency plan to stimulate the economy.
Elsewhere, almost all other Latin equity markets did well over the first half,
with Peru up 19.8%, Argentina up 24.8% and Venezuela up 15.5%.

FIXED INCOME. Investors in Latin fixed income markets responded positively to a
number of factors, most notably conditions in Brazil. While I just cited reasons
for concern about Brazil's economy, it should be noted that the backdrop of
these concerns is much more favorable than was the case as recently as late
1998. Since that time, the government has finally devalued the real--long
dreaded as a measure of last resort--and dramatically reduced interest rates.

The net effect of these and other developments in Brazil has been favorable for
the nation's sovereign debt. Given Brazil's importance among Latin American
economies, fixed income markets elsewhere in the region have benefited by
association. Other positive drivers of Latin debt prices included firming prices
for key regional commodities like oil and copper, as well as investors' higher
comfort level with sovereign risk among emerging markets more generally.

- --------------------------------------------------------------------------------
2
<PAGE>
LETTER TO SHAREHOLDERS

PORTFOLIO STRATEGY: FOCUSING ON BLUE CHIP EQUITIES AND BIGGEST SOVEREIGN DEBT
MARKETS

TOP 5 EQUITY HOLDINGS, BY ISSUER* TOP 5 FIXED INCOME
HOLDINGS, BY ISSUER

<TABLE>
<CAPTION>
% OF % OF
HOLDING COUNTRY NET ASSETS HOLDING COUNTRY NET ASSETS
------------------------------ ---------------- ---------- ------------------------------ ---------------- ----------
<C><S> <C> <C> <C><C> <C> <C>
1. Telmex Mexico 7.4 1. Argentina Gov't Bonds Argentina 7.6
2. Camuzzi Argentina Argentina 4.1 2. Brazil Gov't Bonds Brazil 6.8
3. Televisa Mexico 4.1 3. Mexico Gov't Bonds Mexico 6.4
4. Telebras Brazil 3.0 4. Venezuela Gov't Bonds Venezuela 5.6
5. Tele Norte Leste Brazil 2.8 5. Colombia Gov't Bonds Colombia 2.3
--- ---
Total 21.4 Total 28.7
* Company names are abbreviations of those found in the chart on page 8.
</TABLE>

<TABLE>
<S> <C>
CURRENT ASSET ALLOCATION
(% of net assets)
EDGAR REPRESENTATION OF
DATA POINTS USED IN
PRINTED GRAPHIC

Equities 57.38%
Fixed Income 33.23%
Private Equities 6.65%
Cash & Other Assets 2.74%
</TABLE>

HISTORICAL EQUITIES/FIXED INCOME MIX

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C> <C> <C> <C>
Equities Fixed Income
12/31/96 87.16 2.7
6/30/97 90.22 9.51
12/31/97 90.25 15.23
6/30/98 70.97 23.61
12/31/98 63.43 34.72
6/30/99 63.76 33.5
</TABLE>

EQUITIES. I have chosen to address volatility in Latin equity markets by
sticking to my proverbial knitting: careful stock selection and a reliance on
highly liquid, well-managed companies with strong balance sheets and strong
earnings growth. With this in mind, my focus remains on blue chips, particularly
those that are both well-positioned to prosper in a recovering economic
environment and available at reasonable valuations. I also anticipate some
allocation to neglected smaller names as market conditions stabilize.

On a country level, I strongly favor the two biggest Latin American markets,
Mexico and Brazil, but for somewhat different reasons. Mexico's positive
macroeconomic fundamentals prompt me to weigh in on the side of growth stocks
across the board there, particularly those in sectors that are most responsive
to the domestic economy, such as food

- --------------------------------------------------------------------------------
3
<PAGE>
LETTER TO SHAREHOLDERS

and beverages, retail and other consumer-related. My preference in Brazil is
decidedly for those sectors that are benefiting from a wave of corporate
restructurings currently well under way (E.G., oil & natural gas,
telecommunications).

FIXED INCOME. The Fund's fixed income adviser also is emphasizing the biggest
Latin markets. In order of descending size, target country allocations are
approximately 25% of fixed income assets in Argentina (I.E., a modest
overweight), 20% each in Brazil and Mexico (neutral), 14% in Venezuela
(overweight), 8% in Colombia (overweight), 4% each in Panama (neutral) and Peru
(overweight) and 3% in Ecuador (underweight).

OUTLOOK: GLOBAL PICTURE SEEMS HELPFUL, BRAZIL A CORE CONCERN

As is their usual pattern, Latin American equity and debt markets are likely to
remain volatile in the near-term. Elections and concerns about reliance on
external funding are major reasons for recent market weakness. On the other
hand, no one seems to like Latin assets at the moment. The latter normally is a
good sign, so I intend to remain fully invested both in equities and fixed
income.

EQUITIES. Assuming global growth picks-up and commodity prices proceed on an
upward path, I would see any market corrections as opportunities to increase
equity exposure.

A key driver will be whether Brazil's economy, which is now in deep recession,
has bottomed out and will begin to recover in the second half. Positives in this
regard are that the real currency is very competitive at existing levels,
Brazilian interest rates are trending downward, inflation is very much under
control and there is definitely room for continued easing of monetary policy.

On Brazil's corporate side, aggressive restructuring in certain sectors like oil
& natural gas and telecommunication, along with cost-cutting and tariff
increases, should help to hold investor interest. And there also is the fact
that Brazilian equities are still some 20% below their peak reached in May. In
other words, value remains available to those who are carefully opportunistic,
as I intend to be.

Beyond this, I am ever mindful of the region's political instability. Most Latin
American countries have an important election coming up, or a needed reform that
must be pushed through. This is particularly the case in Brazil, where doubts
about the nation's commitment to fiscal reform are keeping equity valuations low
versus those of other Latin equity markets. It is nothing new, though, and is
among many factors that I watch carefully every day to help position the Fund's
equity portion for future appreciation.

In addition, I continue to seek out private equities with good performance
prospects for medium-term investors.

FIXED INCOME. My near-term outlook for Latin fixed income markets is similarly
cautious, as a variety of technical elements (E.G., low trading volume, the
unwillingness of many dealers to maintain significant inventory for sale, an
expected heavy issuance of new bonds in the next six-12 months) is serving to
maintain downward pressure on prices and valuations.

- --------------------------------------------------------------------------------
4
<PAGE>
LETTER TO SHAREHOLDERS

In the long-term, however, I believe that underlying credit fundamentals will
continue to improve and current high yields offer some cushion against further
meaningful declines. In this respect, ongoing recovery across the world's
economies and a consequent pick-up in commodity prices, for example, should be
good news. Patient bond investors willing to hold positions with the latter
factors in mind should benefit accordingly.

SHARE REPURCHASE UPDATE

In October 1998, the Fund's directors proposed and approved a program to
repurchase up to 15% of outstanding shares to help reduce the difference between
the Fund's share price and its net asset value. The program was completed in
late July, and I am happy to report both that it was successful in its goal of
benefiting shareholder value--nearly all shares were bought back at a discount
to NAV well over 20%--and not disruptive to the market in doing so.

Respectfully,

/s/Richard W. Watt

Richard W. Watt
President and Chief Investment Officer*

FROM CREDIT SUISSE ASSET MANAGEMENT:

I. Effective January 12, 1999, the Fund's investment adviser, BEA Associates,
changed its name to Credit Suisse Asset Management ("CSAM"). In making the
announcement, the firm said that it expected the new name to enhance its
recognition as a global asset manager. CSAM is the investment division of
Credit Suisse Group, one of the world's largest financial organizations,
with $600 billion in assets under management.

II. We wish to remind shareholders whose shares are registered in their own
name that they automatically participate in the Fund's dividend
reinvestment program known as the InvestLink-SM- Program (the "Program").
The Program can be of value to shareholders in maintaining their
proportional ownership interest in the Fund in an easy and convenient way.
A shareholder whose shares are held in the name of a broker/dealer or
nominee should contact the Fund's Transfer Agent for details about
participating in the Program. The Program is described on pages 26 through
28 of this report.

III. Many services provided to the Fund and its shareholders by CSAM and the
Fund's service providers rely on the functioning of their respective
computer systems. Many computer systems cannot distinguish the year 2000
from the year 1900, with resulting potential difficulty in performing
various calculations (the "Year 2000 Issue"). The Year 2000 Issue could
potentially have an adverse impact on the handling of security trades, the
payment of interest and dividends, pricing, account services and other Fund
operations.

- --------------------------------------------------------------------------------
5
<PAGE>
LETTER TO SHAREHOLDERS

CSAM recognizes the importance of the Year 2000 Issue and is taking
appropriate steps necessary in preparation for the year 2000. At this time,
there can be no assurance that these steps will be sufficient to avoid any
adverse impact on the Fund, nor can there be any assurance that the Year
2000 Issue will not have an adverse effect on the Fund's investments or on
global markets or economies, generally.

CSAM anticipates that its systems will be adapted in time for the year
2000. CSAM is seeking assurances that comparable steps are being taken by
the Fund's other major service providers. CSAM will be monitoring the Year
2000 Issue in an effort to ensure appropriate preparation.

- --------------------------------------------------------------------------------
* Richard W. Watt, who is a Managing Director of Credit Suisse Asset Management
("CSAM"), is primarily responsible for management of the Fund's assets. Mr. Watt
has served the Fund in such capacity since January 1, 1997. He joined CSAM on
August 2, 1995. Mr. Watt was formerly associated with Gartmore Investment
Limited in London, where he was head of emerging markets investments and
research. Before joining Gartmore Investment Limited in 1992, Mr. Watt was a
director of Kleinwort Benson International Investments in London, where he was
responsible for research, analysis and trading of equities in Latin America and
other regions. Mr. Watt is President, Chief Investment Officer and a Director of
the Fund. He also is President, Chief Investment Officer and a Director of The
Brazilian Equity Fund, Inc., The Chile Fund, Inc., The Emerging Markets
Infrastructure Fund, Inc., The Emerging Markets Telecommunications Fund, Inc.,
The First Israel Fund, Inc., The Latin America Equity Fund, Inc. and The
Portugal Fund, Inc.
Peter Wilby, of Salomon Brothers Asset Management Inc. ("SBAM") is responsible
for managing the Fund's sovereign debt portfolio. Mr. Wilby, who joined SBAM in
1989, is a Senior Portfolio Manager responsible for SBAM's portfolios which
invest in high yield sovereign debt and high yield corporate securities. Prior
to that time, Mr. Wilby managed high yield bonds and leveraged equities in
mutual funds and institutional portfolios for Prudential Capital Management
Group ("Prudential"). He had previously served as director of Prudential's
credit research unit and as a corporate and sovereign credit analyst with
Prudential. Mr. Wilby is a Chartered Financial Analyst and a Certified Public
Accountant.

- --------------------------------------------------------------------------------
6
<PAGE>
- --------------------------------------------------------------------------------

THE LATIN AMERICA INVESTMENT FUND, INC.

PORTFOLIO SUMMARY - AS OF JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
GEOGRAPHIC ASSET BREAKDOWN

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Argentina 13.99% 17.74%
Brazil 24.47% 28.35%
Chile 9.34% 6.55%
Colombia 2.28% 2.01%
Ecuador 1.54% 1.33%
Mexico 33.34% 28.96%
Panama 1.19% 1.04%
Peru 3.87% 3.86%
Venezuela 6.05% 6.62%
Other 1.77% 1.77%
Cash & Cash Equivalents 2.16% 1.77%
</TABLE>

SECTOR ALLOCATION

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Banking 2.33% 1.81%
Broadcast, Radio & Television 4.09% 1.85%
Cement 1.68% 2.15%
Electric Distribution 1.82% 1.66%
Food & Beverages 8.81% 6.80%
Investment & Holding Companies 3.10% 2.36%
Local and/or Long Distance Telephone
Service 10.08% 6.58%
Mining 1.79% 2.39%
Oil & Natural Gas 5.27% 8.88%
Paper Products 2.70% 2.72%
Retail 1.76% 3.15%
Telecommunications 11.62% 13.99%
Utilities 2.30% 4.34%
Fixed or Floating Rate Investments 33.50% 34.72%
Other 6.41% 4.75%
Cash & Cash Equivalents 2.74% 1.85%
</TABLE>

- --------------------------------------------------------------------------------
7
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

PORTFOLIO SUMMARY - AS OF JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS, BY ISSUER

<TABLE>
<CAPTION>
Percent of Net
Holding Sector Country Assets
<C> <S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
1. Republic of Argentina Fixed or Floating Rate
Investments Argentina 7.6
- ----------------------------------------------------------------------------------------------------------------------------
2. Telefonos de Mexico, S.A. Telecommunications Mexico 7.4
- ----------------------------------------------------------------------------------------------------------------------------
3. Federal Republic of Brazil Fixed or Floating Rate
Investments Brazil 6.8
- ----------------------------------------------------------------------------------------------------------------------------
4. United Mexican States Fixed or Floating Rate
Investments Mexico 6.4
- ----------------------------------------------------------------------------------------------------------------------------
5. Republic of Venezuela Fixed or Floating Rate
Investments Venezuela 5.6
- ----------------------------------------------------------------------------------------------------------------------------
6. Camuzzi Argentina S.A. Oil & Natural Gas Argentina 4.1
- ----------------------------------------------------------------------------------------------------------------------------
7. Grupo Televisa S.A. Broadcast, Radio &
Television Mexico 4.1
- ----------------------------------------------------------------------------------------------------------------------------
8. Telecomunicacoes Brasileiras S.A. Local and/or Long Distance
Telephone Service Brazil 3.0
- ----------------------------------------------------------------------------------------------------------------------------
9. Tele Norte Leste Participacoes S.A. Local and/or Long Distance
Telephone Service Brazil 2.8
- ----------------------------------------------------------------------------------------------------------------------------
10. Kimberly-Clark de Mexico, S.A. de C.V. Paper Products Mexico 2.7
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

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8
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

SCHEDULE OF INVESTMENTS - JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
<S> <C> <C>
- --------------------------------------------------------------------
EQUITY OR EQUITY-LINKED SECURITIES-63.76%
ARGENTINA-6.37%
BANKING-0.40%
Banco Frances S.A. ADR.................. 10,200 $ 193,800
Bansud S.A., Class B+................... 81,512 207,884
-----------
401,684
-----------
LOCAL AND/OR LONG DISTANCE TELEPHONE SERVICE-0.64%
Telecom Argentina Stet - France Telecom
S.A. ADR............................... 23,900 639,325
-----------
OIL & NATURAL GAS-4.13%
Camuzzi Argentina S.A.*+................ 1,536,387 4,132,881
-----------
TELECOMMUNICATIONS-1.20%
Telefonica de Argentina S.A. ADR........ 38,232 1,199,529
-----------
TOTAL ARGENTINA (Cost $4,612,479)...................... 6,373,419
-----------
BRAZIL-17.67%
BANKING-1.45%
Banco do Brasil S.A., Series A, Warrants
(expiring 06/30/01)+................... 11,877,000 7,448
Banco do Brasil S.A., Series B, Warrants
(expiring 06/30/06)+................... 17,815,500 13,085
Banco do Brasil S.A., Series C, Warrants
(expiring 06/30/11)+................... 29,692,500 26,337
Banco Itau S.A. PN...................... 2,731,100 1,404,125
-----------
1,450,995
-----------
FERTILIZER-0.01%
Serrana S.A. ON+........................ 14,249 4,830
Serrana S.A. PN+........................ 16,991 5,088
-----------
9,918
-----------
FOOD & BEVERAGES-1.95%
Companhia Brasileira de Distribuicao
Grupo Pao de Acucar GDR................ 32,000 598,000
Companhia Cervejaria Brahma ADR......... 119,600 1,352,975
-----------
1,950,975
-----------

<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>
LOCAL AND/OR LONG DISTANCE TELEPHONE SERVICE-9.44%
Embratel Participacoes S.A. ADR......... 62,765 $ 870,864
Tele Centro Sul Participacoes S.A.
ADR.................................... 16,100 893,550
Tele Norte Leste Participacoes S.A.
ADR.................................... 149,500 2,775,094
Telecomunicacoes Brasileiras S.A. ADR... 33,100 2,985,206
Telecomunicacoes de Minas Gerais S.A.
PNB.................................... 132,070 3,283
Telecomunicacoes de Sao Paulo S.A. PN... 7,847,193 931,023
Telecomunicacoes de Sao Paulo S.A., PN
Receipts+.............................. 135,170 16,037
Telesp Participacoes S.A. ADR........... 42,000 960,750
-----------
9,435,807
-----------
MINING-1.26%
Companhia Vale do
Rio Doce ADR........................... 18,900 375,239
Companhia Vale do
Rio Doce PNA........................... 44,868 882,151
-----------
1,257,390
-----------
OIL & NATURAL GAS-1.14%
Petroleo Brasileiro S.A. PN............. 4,500,000 699,153
Petroleo Brasileiro S.A. PN ADR......... 30,400 444,911
-----------
1,144,064
-----------
TELECOMMUNICATIONS-0.66%
Telesp Celular Participacoes
S.A. ADR............................... 24,700 660,725
-----------
UTILITIES-1.76%
Centrais Eletricas Brasileiras S.A. PNB
ADR.................................... 53,336 536,987
Companhia Paranaense de Energia ADR..... 146,549 1,227,348
-----------
1,764,335
-----------
TOTAL BRAZIL (Cost $16,613,854)........................ 17,674,209
-----------
</TABLE>

- --------------------------------------------------------------------------------
9
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>
CHILE-8.76%
BANKING-0.48%
Banco de Credito e Inversiones.......... 72,752 $ 484,452
-----------
CONSUMER DURABLES-0.37%
Empresas Almacenes Paris S.A............ 441,229 370,351
-----------
ELECTRIC DISTRIBUTION-1.16%
Chilectra S.A. ADR...................... 53,550 1,158,656
-----------
ELECTRIC GENERATION-0.85%
Empresa Nacional de Electricidad S.A.... 1,221,723 470,301
Enersis S.A............................. 830,623 376,645
-----------
846,946
-----------
ENGINEERING & CONSTRUCTION-0.15%
Besalco S.A............................. 66,354 153,642
-----------
FERTILIZER-0.45%
Sociedad Quimica y Minera de Chile S.A.,
Class A................................ 129,061 448,258
-----------
FINANCIAL SERVICES-0.01%
Invercap S.A............................ 12,094 6,534
-----------
FOOD & BEVERAGES-1.71%
Compania Cervecerias
Unidas S.A............................. 48,420 270,946
Embotelladora Andina S.A. PNA........... 121,203 397,579
Embotelladora Andina S.A. PNB........... 49,172 123,355
Embotelladora Arica S.A. ADR++.......... 75,000 918,750
-----------
1,710,630
-----------
FORESTRY-1.48%
Compania Chilena de
Fosforos S.A........................... 69,033 113,223
Compania de Petroleos de
Chile S.A.............................. 262,729 892,239
Empresas CMPC S.A....................... 51,504 473,052
-----------
1,478,514
-----------
<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>
INSURANCE-0.12%
Compania de Seguros La Prevision Vida
S.A.+.................................. 188,348 $ 119,932
-----------
RETAIL-0.36%
Sociedad Anonima Comercial e Industrial
Falabella.............................. 438,743 364,878
-----------
STEEL-0.42%
Compania Acero del Pacifico S.A......... 270,555 417,644
-----------
TELECOMMUNICATIONS-0.66%
Compania de Telecomunicaciones de Chile
S.A., Class A.......................... 40,717 248,270
Compania de Telecomunicaciones de Chile
S.A., Class B.......................... 113,213 415,060
-----------
663,330
-----------
UTILITIES-0.54%
Gener S.A. ADR.......................... 30,305 537,914
-----------
TOTAL CHILE (Cost $7,848,164).......................... 8,761,681
-----------
COLOMBIA-0.00%
BANKING-0.00%
Banco de Bogota (Cost $0)............... 9 26
-----------
JAMAICA-0.67%
INVESTMENT & HOLDING COMPANIES-0.67%
Jamaican Assets I L.P.+=/= (Cost
$801,191).............................. 794,973 668,660
-----------
LATIN AMERICA-0.00%
TELECOMMUNICATIONS-0.00%
International Wireless Communications,
Inc.,
Series D*+............................. 186,400 0
International Wireless Communications,
Inc.,
Series F*+............................. 10,840 0
</TABLE>

- --------------------------------------------------------------------------------
10
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS (CONTINUED)
International Wireless Communications,
Inc., Warrants (expiring 08/17/07)*+... 1 $ 0
-----------
TOTAL LATIN AMERICA (Cost $1,259,471).................. 0
-----------
MEXICO-26.92%
BROADCAST, RADIO & TELEVISION-4.09%
Grupo Televisa S.A. GDR+................ 91,145 4,084,435
-----------
CEMENT-1.68%
Cemex, S.A. de C.V. CPO................. 340,777 1,678,589
-----------
DIVERSIFIED OPERATIONS-1.40%
Alfa, S.A., Series A.................... 312,110 1,295,770
Desc, S.A. de C.V. ADR.................. 4,600 104,075
-----------
1,399,845
-----------
FINANCIAL SERVICES-1.15%
Grupo Financiero Banamex Accival, S.A.
de C.V., Series O+..................... 114,000 290,138
Grupo Financiero Bancomer, S.A. de C.V.,
Series O............................... 2,384,000 862,083
-----------
1,152,221
-----------
FOOD & BEVERAGES-5.15%
Coca-Cola Femsa S.A. ADR+............... 71,900 1,393,062
Fomento Economico Mexicano, S.A. de C.V.
ADR.................................... 26,480 1,055,890
Grupo Industrial Bimbo, S.A. de C.V.,
Series A............................... 229,914 512,004
Grupo Modelo, S.A. de C.V., Series C.... 766,849 2,187,512
-----------
5,148,468
-----------
INVESTMENT & HOLDING COMPANIES-1.94%
Grupo Carso, S.A. de C.V.,
Series A1+............................. 417,825 1,936,262
-----------
PAPER PRODUCTS-2.70%
Kimberly-Clark de Mexico, S.A. de C.V.,
Series A............................... 657,102 2,703,665
-----------
<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>
RETAIL-1.40%
Cifra S.A. de C.V. ADR+................. 72,889 $ 1,397,960
-----------
TELECOMMUNICATIONS-7.41%
Telefonos de Mexico, S.A.,
Class L ADR............................ 91,689 7,409,617
-----------
TOTAL MEXICO (Cost $22,988,821)........................ 26,911,062
-----------
PERU-2.44%
ELECTRIC DISTRIBUTION-0.66%
Ontario-Quinta A.V.V.*.................. 824,037 654,159
-----------
MINING-0.53%
Southern Peru Copper Corp. ADR.......... 36,700 529,856
-----------
TELECOMMUNICATIONS-1.25%
Telefonica del Peru S.A. ADR............ 82,700 1,250,837
-----------
TOTAL PERU (Cost $2,491,031)........................... 2,434,852
-----------
VENEZUELA-0.44%
CEMENT-0.00%
Corporacion Venezolana de Cementos,
S.A.C.A., Shares 1..................... 217 89
Corporacion Venezolana de Cementos,
S.A.C.A., Shares 2..................... 29 12
-----------
101
-----------
TELECOMMUNICATIONS-0.44%
Venworld Telecommunications=/=.......... 40,140 437,014
-----------
TOTAL VENEZUELA (Cost $816,963)........................ 437,115
-----------
GLOBAL-0.49%
INVESTMENT & HOLDING COMPANIES-0.49%
Emerging Markets Ventures, L.P.+=/=#
(Cost $530,167)........................ 521,708 490,087
-----------
TOTAL EQUITY OR EQUITY-LINKED SECURITIES (Cost
$57,962,141).......................................... 63,751,111
-----------
</TABLE>

- --------------------------------------------------------------------------------
11
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Description (000) (Note A)
- --------------------------------------------------------------------
<S> <C> <C>
FIXED OR FLOATING RATE INVESTMENTS-33.50%
ARGENTINA-7.62%
Republic of Argentina, Series REGS, Euro
MTN, 11.75%, 02/12/07++................ ARS 150 $ 120,579
Republic of Argentina, Global Note,
11.75%, 04/07/09....................... USD 225 203,625
Republic of Argentina, Global Senior
Note, 9.164%, 04/10/05(4).............. 650 585,000
Republic of Argentina, Note, 11.75%,
02/12/07++............................. 2,000 1,607,500
Republic of Argentina, Series 54,
Tranche 1, Unsubordinated Note, 8.75%,
07/10/02++............................. 1,250 1,023,750
Republic of Argentina, Series XW, Global
Note, 11.00%, 12/04/05................. 4,390 4,055,262
<CAPTION>
No. of
Shares
-------------
<S> <C> <C>
Republic of Argentina, Warrants
(expiring 12/03/99)+................... 2,940 25,725
-----------
TOTAL ARGENTINA (Cost $7,779,694)...................... 7,621,441
-----------

BRAZIL-6.80%
<CAPTION>
Par (000)
-------------
<S> <C> <C>
Federal Republic of Brazil, Bearer Bond,
5.00%, 04/15/09(4)(5)(6)............... USD 248 142,600
Federal Republic of Brazil,
Capitalization Bond, 8.00%,
04/15/14(1)(5)(6)...................... 1,178 768,029
Federal Republic of Brazil, Series L,
Capitalization Debenture, 8.00%,
04/15/14(1)(5)(6)...................... 1,793 1,169,320
Federal Republic of Brazil, Series L,
Debt Conversion Bond, 5.9375%,
04/15/12(3)(5)(6)...................... 5,450 3,385,812
<CAPTION>

Par Value
Description (000) (Note A)
- --------------------------------------------------------------------
<S> <C> <C>
BRAZIL (CONTINUED)
Federal Republic of Brazil, Series L,
Debt Conversion Bond, 5.9375%,
04/15/12(3)(5)(6)...................... USD 2,150 $ 1,335,688
-----------
TOTAL BRAZIL (Cost $6,499,445)......................... 6,801,449
-----------
COLOMBIA-2.28%
Republic of Colombia, Global Bond,
10.875%, 03/09/04...................... 1,400 1,344,000
Republic of Colombia, Global
Unsubordinated Bond, 7.625%,
02/15/07............................... 200 154,500
Republic of Colombia, Series 9, Euro
MTN, 7.27%, 06/15/03................... 500 431,250
Republic of Colombia, Yankee Note,
9.705%, 08/13/05(4).................... 400 345,000
-----------
TOTAL COLOMBIA (Cost $2,336,018)....................... 2,274,750
-----------
COSTA RICA-0.34%
Banco Central Costa Rica, Series B,
Principal Bond, 6.25%, 05/21/15(5)(6)
(Cost $347,955)........................ 400 338,000
-----------
ECUADOR-1.54%
The Republic of Ecuador, Par Bond,
4.00%, 02/28/25(5)(7).................. 3,400 1,326,000
The Republic of Ecuador, Series IE,
Bearer Bond, 6.1875%,
12/21/04(2)(5)(6)...................... 375 217,500
-----------
TOTAL ECUADOR (Cost $1,706,324)........................ 1,543,500
-----------
LATIN AMERICA-0.27%
International Wireless Communications,
Inc., Senior Secured Note,
14.00%-25.00%, 08/17/02*(8) (Cost
$456,942).............................. 323 266,820
-----------
MEXICO-6.42%
United Mexican States, Global Bond,
10.375%, 02/17/09...................... 1,525 1,549,781
United Mexican States, Series
W-B, Par Bond, 6.25%, 12/31/19(5)...... 6,500 4,740,450
</TABLE>

- --------------------------------------------------------------------------------
12
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

TOTAL INVESTMENTS-97.84%
(Cost $91,208,807) (Notes A,D)........................ 97,824,616
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES-2.16%...
2,164,032
-----------
NET ASSETS-100.00%..................................... $99,988,648
-----------
-----------
- ---------------------------------------------------------
* Not readily marketable security.
+ Security is non-income producing.
++ SEC Rule 144A security. Such securities are traded
only among "qualified institutional buyers."
=/= Restricted security, not readily marketable (See
Note F).
# As of June 30, 1999, the Fund committed to investing
an additional $711,375 of capital in Emerging
Markets Ventures, L.P.
(1) Payment-in-kind bond; of which all or a portion of
the coupon is being capitalized at periodic
intervals.
(2) Floating rate bond; rate resets based on 6-month
London Interbank Offered Rate ("LIBOR") plus
0.8125%.
(3) Floating rate bond; rate resets based on 6-month
LIBOR plus 0.875%.
(4) Variable rate bond; coupon varies at periodic
intervals.
(5) Brady Bond.
(6) Pro-rata sinking fund has been established.
(7) Step-up bond; coupon increases at periodic
intervals.
(8) As of March 31, 1998, this investment ceased
accruing interest.
ADR American Depositary Receipts.
ARS Argentine Pesos.
CPO Ordinary Participation Certificates.
GDR Global Depositary Receipts.
MTN Medium Term Note.
ON Ordinary Shares.
PN Preferred Shares.
PNA Preferred Shares, Class A.
PNB Preferred Shares, Class B.
USD United States Dollars.
</TABLE>

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
13
<PAGE>
- --------------------------------------------------------------------------------

THE LATIN AMERICA INVESTMENT FUND, INC.

STATEMENT OF ASSETS AND LIABILITIES - JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS
Investments, at value (Cost $91,208,807)
(Note A)............................... $ 97,824,616
Cash (Note A)........................... 2,163,023
Receivables:
Interest.............................. 838,570
Dividends............................. 411,639
Investments sold...................... 58,333
Prepaid expenses and other assets....... 17,315
------------
Total Assets............................ 101,313,496
------------

LIABILITIES
Payables:
Capital shares repurchased (Note G)... 464,980
Investment advisory fees (Note B)..... 278,586
Investments purchased................. 209,231
Administration fees (Note B).......... 41,187
Other accrued expenses................ 279,727
Chilean repatriation taxes (Note A)... 51,137
------------
Total Liabilities....................... 1,324,848
------------
NET ASSETS (applicable to 6,830,439
shares of common stock outstanding)
(Note C)............................... $ 99,988,648
------------
------------

NET ASSET VALUE PER SHARE ($99,988,648
DIVIDED BY 6,830,439)................. $14.64
------------
------------

NET ASSETS CONSIST OF
Capital stock, $0.001 par value;
6,830,439 shares issued and outstanding
(100,000,000 shares authorized)........ $ 6,830
Paid-in capital......................... 121,399,527
Undistributed net investment income..... 774,494
Accumulated net realized loss on
investments and foreign currency
related transactions................... (28,748,675)
Net unrealized appreciation in value of
investments and translation of other
assets and liabilities denominated in
foreign currencies..................... 6,556,472
------------
Net assets applicable to shares
outstanding............................ $ 99,988,648
------------
------------
</TABLE>

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME
Income (Note A):
Dividends............................. $ 916,769
Interest.............................. 2,198,994
Less: Foreign taxes withheld.......... (74,697)
-----------
Total Investment Income............... 3,041,066
-----------
Expenses:
Investment advisory fees (Note B)..... 573,790
Administration fees (Note B).......... 85,460
Audit and legal fees.................. 54,295
Custodian fees........................ 44,697
Accounting fees....................... 40,031
Printing.............................. 39,738
Directors' fees....................... 19,836
Transfer agent fees................... 17,833
NYSE listing fees..................... 8,018
Insurance............................. 5,700
Other................................. 7,553
Brazilian taxes (Note A).............. 6,350
-----------
Total Expenses........................ 903,301
Less: Fee waivers (Note B)............ (55,113)
-----------
Net Expenses........................ 848,188
-----------
Net Investment Income................. 2,192,878
-----------

NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY
RELATED TRANSACTIONS
Net realized loss from:
Investments........................... (502,950)
Foreign currency related
transactions......................... (525,898)
Net change in unrealized depreciation in
value of investments and translation of
other assets and liabilities
denominated in foreign currencies...... 17,956,157
-----------
Net realized and unrealized gain on
investments and foreign currency
related transactions................... 16,927,309
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................ $19,120,187
-----------
-----------
</TABLE>

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
15
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
For the Six
Months Ended For the Year
June 30, 1999 Ended
(unaudited) December 31, 1998
<S> <C> <C>
-------------------------------------

INCREASE/(DECREASE) IN NET ASSETS
Operations:
Net investment income................. $ 2,192,878 $ 3,439,779
Net realized loss on investments and
foreign currency related
transactions......................... (1,028,848) (25,228,498)
Net change in unrealized
appreciation/(depreciation) in value
of investments and translation of
other assets and liabilities
denominated in foreign currencies.... 17,956,157 (27,737,482)
-------------- -----------------
Net increase/(decrease) in net
assets resulting from operations... 19,120,187 (49,526,201)
-------------- -----------------
Dividends to shareholders:
Net investment income................. -- (3,566,312)
-------------- -----------------
Capital share transactions:
Proceeds from 78,479 shares issued in
reinvestment of dividends............ -- 1,069,270
Cost of 1,094,700 shares and 26,100
shares, respectively, repurchased
(Note G)............................. (10,230,846) (235,428)
-------------- -----------------
Net increase/(decrease) in net
assets resulting from capital share
transactions..................... (10,230,846) 833,842
-------------- -----------------
Total increase/(decrease) in net
assets............................. 8,889,341 (52,258,671)
-------------- -----------------

NET ASSETS
Beginning of period..................... 91,099,307 143,357,978
-------------- -----------------
End of period........................... $ 99,988,648* $ 91,099,307
-------------- -----------------
-------------- -----------------
- ------------------------------
</TABLE>

* Includes undistributed net investment income of $774,494.

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------

THE LATIN AMERICA INVESTMENT FUND, INC.

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from information provided in the financial statements and market price
data for the Fund's shares.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30, For the Years Ended December 31,
1999+ -----------------------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994+
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------
PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning
of period................. $11.49 $18.21 $19.07 $17.09 $20.18 $25.73
---------- --------- ---------- ---------- ---------- ----------
Net investment income...... 0.30 0.43 0.11 0.28 0.19 0.09
Net realized and unrealized
gain/ (loss) on
investments and foreign
currency related
transactions.............. 2.45 (6.71)++ 1.66 1.93 (3.09) 1.29
---------- --------- ---------- ---------- ---------- ----------
Net increase/(decrease) in
net assets resulting from
operations................ 2.75 (6.28) 1.77 2.21 (2.90) 1.38
---------- --------- ---------- ---------- ---------- ----------
Dividends and distributions
to shareholders:
Net investment income.... -- (0.45) (0.21) (0.23) -- (0.07)
Net realized gain on
investments and foreign
currency related
transactions............ -- -- (2.42) -- (0.19) (4.33)
In excess of net realized
gains................... -- -- -- -- -- --
---------- --------- ---------- ---------- ---------- ----------
Total dividends and
distributions to
shareholders.............. -- (0.45) (2.63) (0.23) (0.19) (4.40)
---------- --------- ---------- ---------- ---------- ----------
Dilution due to capital
share rights offering..... -- -- -- -- -- (2.53)
---------- --------- ---------- ---------- ---------- ----------
Anti-dilutive impact due to
capital shares
repurchased............... 0.40 0.01 -- -- -- --
---------- --------- ---------- ---------- ---------- ----------
Net asset value, end
of period................. $14.64 $11.49 $18.21 $19.07 $17.09 $20.18
---------- --------- ---------- ---------- ---------- ----------
---------- --------- ---------- ---------- ---------- ----------
Market value, end of
period.................... $11.250 $8.188 $14.313 $15.750 $14.750 $18.750
---------- --------- ---------- ---------- ---------- ----------
---------- --------- ---------- ---------- ---------- ----------
Total investment
return(a)................. 37.40% (39.56)% 8.21% 8.26% (20.34)% (26.63)%
---------- --------- ---------- ---------- ---------- ----------
---------- --------- ---------- ---------- ---------- ----------
RATIOS/SUPPLEMENTAL
DATA
Net assets, end of period
(000 omitted)............. $99,989 $91,099 $143,358 $150,007 $134,290 $156,673
Ratio of expenses to
average net assets(c)..... 1.85%(b) 2.39% 2.46% 1.70% 2.00% 2.02%
Ratio of expenses to
average net assets,
excluding fee waivers..... 1.97%(b) 2.51% 2.58% 1.82% 2.12% --
Ratio of expenses to
average net assets,
excluding taxes........... 1.83%(b) 1.80% 1.68% -- 1.78% 1.72%
Ratio of net investment
income to average net
assets.................... 4.77%(b) 2.91% 0.53% 1.47% 1.10% 0.63%
Portfolio turnover rate.... 73.77% 172.62% 124.98% 50.21% 38.71% 77.81%

<CAPTION>
For the Period
August 1,
For the Years Ended December 31, 1990*
through
-------------------------------------- December 31,
1993 1992 1991 1990
<S> <C> <C> <C> <C>

PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning
of period................. $25.36 $26.05 $14.24 $13.64**
---------- ---------- ---------- -------
Net investment income...... 0.08 0.24 0.61 0.29
Net realized and unrealized
gain/ (loss) on
investments and foreign
currency related
transactions.............. 10.18 1.51 14.66 0.58
---------- ---------- ---------- -------
Net increase/(decrease) in
net assets resulting from
operations................ 10.26 1.75 15.27 0.87
---------- ---------- ---------- -------
Dividends and distributions
to shareholders:
Net investment income.... (0.22) -- (0.63) (0.27)
Net realized gain on
investments and foreign
currency related
transactions............ (8.61) (2.44) (2.83) --
In excess of net realized
gains................... (0.04) -- -- --
---------- ---------- ---------- -------
Total dividends and
distributions to
shareholders.............. (8.87) (2.44) (3.46) (0.27)
---------- ---------- ---------- -------
Dilution due to capital
share rights offering..... (1.02) -- -- --
---------- ---------- ---------- -------
Anti-dilutive impact due to
capital shares
repurchased............... -- -- -- --
---------- ---------- ---------- -------
Net asset value, end
of period................. $25.73 $25.36 $26.05 $14.24
---------- ---------- ---------- -------
---------- ---------- ---------- -------
Market value, end of
period.................... $31.500 $24.375 $26.500 $11.125
---------- ---------- ---------- -------
---------- ---------- ---------- -------
Total investment
return(a)................. 89.45% 2.35% 167.96% (18.35)%
---------- ---------- ---------- -------
---------- ---------- ---------- -------
RATIOS/SUPPLEMENTAL
DATA
Net assets, end of period
(000 omitted)............. $140,458 $102,259 $104,435 $57,081
Ratio of expenses to
average net assets(c)..... 2.06% 2.61% 2.30% 3.27%(b)
Ratio of expenses to
average net assets,
excluding fee waivers..... -- -- -- --
Ratio of expenses to
average net assets,
excluding taxes........... -- 2.31% -- --
Ratio of net investment
income to average net
assets.................... 1.45% 1.15% 2.85% 5.10%(b)
Portfolio turnover rate.... 70.17% 55.40% 82.39% 52.49%
</TABLE>

- --------------------------------------------------------------------------------
17
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------

* Commencement of investment operations.
** Initial public offering price of $15.00 per share less underwriting
discount of $1.05 per share and offering expenses of $0.31 per share.
+ Based on average shares outstanding except for dividends and
distributions to shareholders, if any, which are based on actual
dividends and distributions paid.
++ Includes a $0.05 per share decrease to the Fund's net asset value per
share resulting from the dilutive impact of shares issued pursuant to
the Fund's automatic dividend reinvestment program for the year ended
December 31, 1998.
(a) Total investment return at market value is based on the changes in
market price of a share during the period and assumes reinvestment of
dividends and distributions, if any, at actual prices pursuant to the
Fund's dividend reinvestment program. Total investment return does not
reflect brokerage commissions or initial underwriting discounts and
has not been annualized.
(b) Annualized.
(c) Ratios reflect actual expenses incurred by the Fund. Amounts are net
of fee waivers and inclusive of taxes.

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------

THE LATIN AMERICA INVESTMENT FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------

NOTE A. SIGNIFICANT ACCOUNTING POLICIES

The Latin America Investment Fund, Inc. (the "Fund") was incorporated in
Maryland on April 17, 1990 and commenced investment operations on August 1,
1990. The Fund is registered under the Investment Company Act of 1940, as
amended, as a closed-end, non-diversified management investment company.
Significant accounting policies are as follows:

MANAGEMENT ESTIMATES: The preparation of financial statements in accordance with
generally accepted accounting principles requires management to make certain
estimates and assumptions that may affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.

PORTFOLIO VALUATION: Investments are stated at value in the accompanying
financial statements. All securities for which market quotations are readily
available are valued at the last sales price or lacking any sales, at the
closing price last quoted for the securities (but if bid and asked quotations
are available, at the mean between the current bid and asked prices). Securities
that are traded over-the-counter are valued at the mean between the current bid
and the asked prices, if available. All other securities and assets are valued
at fair value as determined in good faith by the Board of Directors. Short-term
investments having a maturity of 60 days or less are valued on the basis of
amortized cost. The Board of Directors has established general guidelines for
calculating fair value of not readily marketable securities. At June 30, 1999,
the Fund held 6.65% of its net assets in securities valued in good faith by the
Board of Directors with an aggregate cost of $6,968,194 and fair value of
$6,649,621. The net asset value per share of the Fund is calculated on each
business day, with the exception of those days on which the New York Stock
Exchange is closed.

CASH: Deposits held at Brown Brothers Harriman & Co., the Fund's custodian, in a
variable rate account are classified as cash. At June 30, 1999, the interest
rate was 4.00%, which resets on a daily basis. Amounts on deposit are generally
available on the same business day.

INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on an accrual basis; dividend
income is recorded on the ex-dividend date.

TAXES: No provision is made for U.S. federal income or excise taxes as it is the
Fund's intention to continue to qualify as a regulated investment company and to
make the requisite distributions to its shareholders which will be sufficient to
relieve it from all or substantially all U.S. federal income and excise taxes.

At December 31, 1998, the Fund had a capital loss carryforward of $22,881,266
which expires in 2006.

For U.S. federal income tax purposes, realized foreign currency losses and net
realized capital losses from investments incurred after October 31, 1998, within
the Fund's prior fiscal year, are deemed to arise on the first day of the
current fiscal year. The Fund incurred and elected to defer such losses of
$72,132 and $3,037,861, respectively.

Income received by the Fund from sources within Latin America may be subject to
withholding and other taxes imposed by Latin American countries. Also, certain
Latin American countries impose taxes on funds remitted or repatriated from such
countries.

- --------------------------------------------------------------------------------
19
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------

The Fund is subject to a 10% Chilean repatriation tax with respect to all
remittances from Chile in excess of original invested capital. For the six
months ended June 30, 1999, the Fund incurred no such expense.

From January 23, 1997 through January 22, 1999, Brazil imposed a 0.20%
Contribucao Provisoria sobre Movimentacaoes Financieras ("CPMF") tax that
applied to most debit transactions carried out by financial institutions.
Effective January 23, 1999, the CPMF tax expired and was reinstated on June 17,
1999 for a period of three years. The tax is assessed at a rate of 0.38% for the
initial year and will drop to 0.30% for the remaining two years. For the six
months ended June 30, 1999, the Fund incurred $6,350 of such expense.

FOREIGN CURRENCY TRANSLATIONS: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:

(I) market value of investment securities, assets and liabilities at the
current rate of exchange; and

(II) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.

The Fund does not isolate that portion of gains and losses in investments in
equity securities which is due to changes in the foreign exchange rates from
that which is due to changes in market prices of equity securities. Accordingly,
realized and unrealized foreign currency gains and losses with respect to such
securities are included in the reported net realized and unrealized gains and
losses on investment transactions balances. However, the Fund does isolate the
effect of fluctuations in foreign exchange rates when determining the gain or
loss upon the sale or maturity of foreign currency denominated debt obligations
pursuant to U.S. federal income tax regulations, with such amount categorized as
foreign exchange gain or loss for both financial reporting and U.S. federal
income tax reporting purposes.

Net currency gains or losses from valuing foreign currency denominated assets
and liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation/depreciation in value of investments and translation of
other assets and liabilities denominated in foreign currencies.

Net realized foreign exchange losses represent foreign exchange gains and losses
from sales and maturities of debt securities, transactions in foreign currencies
and forward foreign currency contracts, exchange gains or losses realized
between the trade date and settlement dates on security transactions, and the
difference between the amounts of interest and dividends recorded on the Fund's
books and the U.S. dollar equivalent of the amounts actually received.

DISTRIBUTIONS OF INCOME AND GAINS: The Fund distributes at least annually to
shareholders, substantially all of its net investment income and net realized
short-term capital gains, if any. The Fund determines annually whether to
distribute any net realized long-term capital gains in excess of net realized
short-term capital losses, including capital loss carryovers, if any. An
additional distribution may be made to the extent necessary to avoid the payment
of a 4% U.S. federal excise tax. Dividends and distributions to shareholders are
recorded by the Fund on the ex-dividend date.

The character of distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for U.S.

- --------------------------------------------------------------------------------
20
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
federal income tax purposes due to U.S. generally accepted accounting
principles/tax differences in the character of income and expense recognition.

OTHER: Securities denominated in currencies other than U.S. dollars are subject
to changes in value due to fluctuations in exchange rates.

Some countries require governmental approval for the repatriation of investment
income, capital or the proceeds of sales of securities by foreign investors. In
addition, if there is a deterioration in a country's balance of payments or for
other reasons, a country may impose temporary restrictions on foreign capital
remittances abroad. Amounts repatriated prior to the end of specified periods
may be subject to taxes as imposed by a foreign country.

The Latin American securities markets are substantially smaller, less liquid and
more volatile than the major securities markets in the United States.
Consequently, acquisition and disposition of securities by the Fund may be
inhibited. A significant proportion of the aggregate market value of equity
securities listed on the major securities exchanges are held by a small number
of investors. This may limit the number of shares for acquisition or disposition
by the Fund.

The Fund, subject to local investment limitations, may invest up to 25% of its
assets in non-publicly traded equity securities, which may involve a high degree
of business and financial risk and may result in substantial losses. Because of
the current absence of any liquid trading market for these investments, the Fund
may take longer to liquidate these positions than would be the case for publicly
traded securities. Although these securities may be resold in privately
negotiated transactions, the prices realized on such sales could be
substantially less than those originally paid by the Fund or the current
carrying values. Further, companies whose securities are not publicly traded may
not be subject to the disclosure and other investor protection requirements
applicable to companies whose securities are publicly traded.

The Fund is permitted to engage in the trading of sovereign debt of Latin
American countries, which involves a high degree of risk. The issuer of the debt
or the governmental authorities that control the repayment of the debt may be
unable or unwilling to repay principal and/or interest when due in accordance
with the terms of such debt. Sovereign debt in which the Fund will invest is
widely considered to have a credit quality below investment grade as determined
by U.S. rating agencies. As a result, sovereign debt may be regarded as
predominantly speculative with respect to the issuer's capacity to pay interest
and repay principal in accordance with the terms of the obligations and involves
major risk exposure to adverse conditions.

The Fund may enter into repurchase agreements ("repos") on U.S. Government
securities with primary government securities dealers recognized by the Federal
Reserve Bank of New York and member banks of the Federal Reserve System and on
securities issued by the governments of foreign countries, their
instrumentalities and with creditworthy parties in accordance with established
procedures. Repos are contracts under which the buyer of a security
simultaneously buys and commits to resell the security to the seller at an
agreed upon price and date. Repos are deposited with the Fund's custodian and,
pursuant to the terms of the repo, the collateral must have an aggregate market
value greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities fall below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities at
market value and

- --------------------------------------------------------------------------------
21
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
may claim any resulting loss against the seller; collectibility of such claims
may be limited. At June 30, 1999, the Fund had no such agreements.

NOTE B. AGREEMENTS

Credit Suisse Asset Management ("CSAM"), formerly BEA Associates, serves as the
Fund's investment adviser, with respect to all investments other than sovereign
debt. As compensation for its advisory services, CSAM receives from the Fund an
annual fee, calculated weekly and paid quarterly, equal to 1.0625% of the first
$100 million of the Fund's average weekly net assets, 0.9775% of the next $50
million of the Fund's average weekly net assets and 0.8925% of amounts over $150
million. CSAM has agreed to waive its portion of the advisory fee previously
payable to the Fund's former sub-advisers. For the six months ended June 30,
1999, CSAM earned $487,722 for advisory services, of which CSAM waived $46,846.
CSAM also provides certain administrative services to the Fund and is reimbursed
by the Fund for costs incurred on behalf of the Fund (up to $20,000 per annum).
For the six months ended June 30, 1999, CSAM was reimbursed $6,447 for
administrative services rendered to the Fund.

Salomon Brothers Asset Management Inc. ("SBAM") serves as the Fund's investment
adviser, with respect to sovereign debt. In return for its services, SBAM is
paid an annual fee, calculated weekly and paid quarterly, equal to 0.1875% of
the first $100 million of the Fund's average weekly net assets, 0.1725% of the
next $50 million of the Fund's average weekly net assets and 0.1575% of amounts
over $150 million. SBAM has agreed to waive its portion of the advisory fee
previously payable to the former sub-advisers. For the six months ended June 30,
1999, advisory fees amounted to $86,068, of which $8,267 was waived by SBAM.

Celfin Servicios Financieros Limitada ("Celfin") serves as the Fund's
sub-adviser with respect to Chilean investments. In return for its services,
Celfin is paid a fee, out of the advisory fees payable to CSAM and SBAM,
computed weekly and paid quarterly at an annual rate of 0.05% of the Fund's
average weekly net assets. For the six months ended June 30, 1999, these
sub-advisory fees amounted to $22,967.

Bear Stearns Funds Management Inc. ("BSFM") serves as the Fund's U.S.
administrator. The Fund pays BSFM a monthly fee that is computed weekly at an
annual rate of 0.10% of the first $100 million of the Fund's average weekly net
assets and 0.08% of amounts in excess of $100 million. For the six months ended
June 30, 1999, BSFM earned $45,873 for administrative services.

BEA Administration, Administradora de Fondos de Inversion de Capital Extranjero
S.A. ("AFICE") serves as the Fund's Chilean administrator. For its services,
AFICE is paid an annual fee by the Fund equal to the greater of 2,000 U.F.'s
(approximately $57,500 at June 30, 1999) or 0.10% of the Fund's average weekly
net assets invested in Chile and an annual reimbursement of out-of-pocket
expenses not to exceed 500 U.F.'s. Such fees are paid by AFICE to Celfin for
certain administrative services. An accounting fee is also paid to Celfin, which
is calculated, and paid quarterly at an annual rate of 205.32 U.F.'s
(approximately $5,900 at June 30, 1999). For the six months ended June 30, 1999,
Celfin earned $33,140 and $2,969 for administrative and accounting services,
respectively.

NOTE C. CAPITAL STOCK

The authorized capital stock of the Fund is 100,000,000 shares of common stock,
$0.001, par value. Of the 6,830,439 shares outstanding at June 30, 1999, CSAM
owned 7,169 shares.

- --------------------------------------------------------------------------------
22
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------

NOTE D. INVESTMENT IN SECURITIES

For U.S. federal income tax purposes, the cost of securities owned at June 30,
1999 was $91,915,464. Accordingly, the net unrealized appreciation of
investments (including investments denominated in foreign currencies) of
$5,909,152, was composed of gross appreciation of $11,668,929 for those
investments having an excess of value over cost and gross depreciation of
$5,759,777 for those investments having an excess of cost over value.

For the six months ended June 30, 1999, purchases and sales of securities, other
than short-term investments, were $65,667,498 and $76,060,259, respectively.

NOTE E. CREDIT AGREEMENT

The Fund, along with 10 other U.S. regulated investment companies for which CSAM
serves as investment adviser, has a credit agreement with BankBoston, N.A. The
agreement provides that each fund is permitted to borrow an amount equal to the
lesser of $25,000,000 or 25% of the net assets of the fund. However, at no time
shall the aggregate outstanding principal amount of all loans to any of the 11
funds exceed $25,000,000. The line of credit will bear interest at (i) the
greater of the bank's prime rate or the Federal Funds Effective Rate plus 0.50%
or (ii) the Adjusted Eurodollar Rate plus 1.50%. The Fund had no amounts
outstanding under the credit agreement during the six months ended and at June
30, 1999. Upon termination of the above agreement with BankBoston, N.A., the
Fund entered into a credit agreement with Deutsche Bank AG and State Street Bank
and Trust Company effective July 28, 1999.

NOTE F. RESTRICTED SECURITIES

Certain of the Fund's investments are restricted as to resale and are valued at
the direction of the Fund's Board of Directors in good faith, at fair value,
after taking into consideration appropriate indications of value. The table
below shows the number of shares held, the acquisition dates, aggregate cost,
fair value as of June 30, 1999, per share value of such securities and
percentage of net assets which the securities comprise.

<TABLE>
<CAPTION>
PERCENT
NUMBER FAIR VALUE VALUE OF
OF ACQUISITION AT PER NET
SECURITY SHARES DATES COST 06/30/99 SHARE ASSETS
- --------------------------------------- -------- ---------------- ------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets Ventures, L.P......... 5,333 01/22/98 $ 5,434 $ 5,010 $ 0.94 0.01
Emerging Markets Ventures, L.P......... 234,746 05/06/98 239,183 220,518 0.94 0.22
Emerging Markets Ventures, L.P......... 115,870 07/07/98 118,060 108,847 0.94 0.11
Emerging Markets Ventures, L.P......... 91,609 10/27/98 93,340 86,057 0.94 0.08
Emerging Markets Ventures, L.P......... 52,774 02/26/99 52,774 49,575 0.94 0.05
Emerging Markets Ventures, L.P......... 21,376 04/19/99 21,376 20,080 0.94 0.02
Jamaican Assets I L.P.................. 397,486 07/29/97 400,595 334,330 0.84 0.33
Jamaican Assets I L.P.................. 397,487 10/17/97 400,596 334,330 0.84 0.34
Venworld Telecommunications............ 24,887 07/30/92 501,978 270,951 10.89 0.27
Venworld Telecommunications............ 15,253 08/07/92 314,981 166,063 10.89 0.17
</TABLE>

The Fund may incur certain costs in connection with the disposition of the above
securities.

- --------------------------------------------------------------------------------
23
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA INVESTMENT FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------

NOTE G. SHARE REPURCHASE PROGRAM

On October 21, 1998, the Fund announced that its Board of Directors has
authorized the repurchase by the Fund of up to 15% of the Fund's outstanding
common stock, for the purposes of enhancing shareholder value. The Fund's Board
has authorized management of the Fund to repurchase such shares in open market
transactions at prevailing market prices from time to time and in a manner
consistent with the Fund continuing to seek to achieve its investment
objectives. The Board's actions were taken in light of the significant discounts
at which the Fund's shares recently have been trading. It is intended both to
provide additional liquidity to those shareholders that elect to sell their
shares and to enhance the net asset value of the shares held by those
shareholders that maintain their investment. The repurchase program will be
subject to review by the Board of Directors of the Fund. From October 21, 1998
through December 31, 1998, the Fund repurchased 26,100 of its shares for a total
cost of $235,428 at a weighted average discount of 25.43% from net asset value.
The discount of individual repurchases ranged from 25.31% - 25.83%. For the six
months ended June 30, 1999, the Fund repurchased 1,094,700 of its shares for a
total cost of $10,230,846 at a weighted average discount of 23.09% from net
asset value. The discount of individual repurchases ranged from 17.55% - 27.68%.

- --------------------------------------------------------------------------------
24
<PAGE>
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)

On May 11, 1999, the annual meeting of shareholders of The Latin America
Investment Fund, Inc. (the "Fund") was held and the following matters were voted
upon:

(1) To re-elect two directors to the Board of Directors of the Fund.

<TABLE>
<CAPTION>
NAME OF DIRECTOR FOR WITHHELD NON-VOTES
- ----------------------------------------------------------------------------------- ---------- --------- ----------
<S> <C> <C> <C>
James J. Cattano 5,724,766 717,285 1,124,288
Riordan Roett 5,709,138 732,913 1,124,288
</TABLE>

In addition to the directors re-elected at the meeting, Dr. Enrique R. Arzac,
Peter A. Gordon, George W. Landau, Martin M. Torino, William W. Priest, Jr. and
Richard W. Watt continue to serve as directors of the Fund.

(2) To ratify the selection of PricewaterhouseCoopers LLP as independent public
accountants for the fiscal year ending December 31, 1999.

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN NON-VOTES
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
6,350,045 56,172 35,834 1,124,288
</TABLE>

(3) To approve a shareholder proposal providing that the advisory contract
between the Fund and Credit Suisse Asset Management be terminated.

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN NON-VOTES
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
1,154,790 5,214,868 72,393 1,124,288
</TABLE>

The required votes were not received to approve the above proposal.

- --------------------------------------------------------------------------------
25
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM

The InvestLink-SM- Program is sponsored and administered by BankBoston, N.A.,
not by The Latin America Investment Fund, Inc. (the "Fund"). BankBoston, N.A.
will act as program administrator (the "Program Administrator") of the
InvestLink-SM- Program (the "Program"). The purpose of the Program is to provide
interested investors with a simple and convenient way to invest funds and
reinvest dividends in shares of the Fund's common stock ("Shares") at prevailing
prices, with reduced brokerage commissions and fees.

An interested investor may join the Program at any time. Purchases of Shares
with funds from a participant's cash payment or automatic account deduction will
begin on the next day on which funds are invested. If a participant selects the
dividend reinvestment option, automatic investment of dividends generally will
begin with the next dividend payable after the Program Administrator receives
his enrollment form. Once in the Program, a person will remain a participant
until he terminates his participation or sells all Shares held in his Program
account, or his account is terminated by the Program Administrator. A
participant may change his investment options at any time by requesting a new
enrollment form and returning it to the Program Administrator.

A participant will be assessed certain charges in connection with his
participation in the Program. First-time investors will be subject to an initial
service charge which will be deducted from their initial cash deposit. All
optional cash deposit investments will be subject to a service charge. Sales
processed through the Program will have a service fee deducted from the net
proceeds, after brokerage commissions. In addition to the transaction charges
outlined above, participants will be assessed per share processing fees (which
include brokerage commissions.) Participants will not be charged any fee for
reinvesting dividends.

The number of Shares to be purchased for a participant depends on the amount of
his dividends, cash payments or bank account or payroll deductions, less
applicable fees and commissions, and the purchase price of the Shares. The
Program Administrator uses dividends and funds of participants to purchase
Shares of the Fund's common stock in the open market. Such purchases will be
made by participating brokers as agent for the participants using normal cash
settlement practices. All Shares purchased through the Program will be allocated
to participants as of the settlement date, which is usually three business days
from the the purchase date. In all cases, transaction processing will occur
within 30 days of the receipt of funds, except where temporary curtailment or
suspension of purchases is necessary to comply with applicable provisions of the
Federal Securities laws or when unusual market conditions make prudent
investment impracticable. In the event the Program Administrator is unable to
purchase Shares within 30 days of the receipt of funds, such funds will be
returned to the participants.

The average price of all Shares purchased by the Program Administrator with all
funds received during the time period from two business days preceding any
investment date up to the second business day preceding the next investment date
shall be the price per share allocable to a participant in connection with the
Shares purchased for his account with his funds or dividends received by the
Program Administrator during such time period. The average price of all Shares
sold by the Program Administrator pursuant to sell orders received during such
time period shall be the price per share allocable to a participant in
connection with the Shares sold for his account pursuant to his sell orders
received by the Program Administrator during such time period.

BankBoston, N.A., as Program Administrator, administers the Program for
participants, keeps

- --------------------------------------------------------------------------------
26
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM (CONTINUED)

records, sends statements of account to participants and performs other duties
relating to the Program. Each participant in the Program will receive a
statement of his account following each purchase of Shares. The statements will
also show the amount of dividends credited to such participant's account (if
applicable), as well as the fees paid by the participant. In addition, each
participant will receive copies of the Fund's annual and semi-annual reports to
shareholders, proxy statements and, if applicable, dividend income information
for tax reporting purposes.

If the Fund is paying dividends on the Shares, a participant will receive
dividends through the Program for all Shares held on the dividend record date on
the basis of full and fractional Shares held in his account, and for all other
Shares of the Fund registered in his name. The Program Administrator will send
checks to the participants for the amounts of their dividends that are not to be
automatically reinvested at no cost to the participants.

Shares of the Fund purchased under the Program will be registered in the name of
the accounts of the respective participants. Unless requested, the Fund will not
issue to participants certificates for Shares of the Fund purchased under the
Program. The Program Administrator will hold the Shares in book-entry form until
a Program participant chooses to withdraw his Shares or terminate his
participation in the Program. The number of Shares purchased for a participant's
account under the Program will be shown on his statement of account. This
feature protects against loss, theft or destruction of stock certificates.

A participant may withdraw all or a portion of the Shares from his Program
account by notifying the Program Administrator. After receipt of a participant's
request, the Program Administrator will issue to such participant certificates
for the whole Shares of the Fund so withdrawn or, if requested by the
participant, sell the Shares for him and send him the proceeds, less applicable
brokerage commissions, fees, and transfer taxes, if any. If a participant
withdraws all full and fractional Shares in his Program account, his
participation in the Program will be terminated by the Program Administrator. In
no case will certificates for fractional Shares be issued. The Program
Administrator will convert any fractional Shares held by a participant at the
time of his withdrawal to cash.

Participation in any rights offering, dividend distribution or stock split will
be based upon both the Shares of the Fund registered in participants' names and
the Shares (including fractional Shares) credited to participants' Program
accounts. Any stock dividend or Shares resulting from stock splits with respect
to Shares of the Fund, both full and fractional, which participants hold in
their Program accounts and with respect to all Shares registered in their names
will be automatically credited to their accounts.

All Shares of the Fund (including any fractional Shares) credited to his account
under the Program will be voted as the participant directs. The participants
will be sent the proxy materials for the annual meetings of shareholders. When a
participant returns an executed proxy, all of such Shares will be voted as
indicated. A participant may also elect to vote his Shares in person at the
Shareholders' meeting.

A participant will receive tax information annually for his personal records and
to help him prepare his U.S. federal income tax return. The automatic
reinvestment of dividends does not relieve him of any income tax which may be
payable on dividends. For further information as to tax consequences of
participation in the Program, participants should consult with their own tax
advisors.

The Program Administrator in administering the Program will not be liable for
any act done in good faith or for any good faith omission to act. However, the

- --------------------------------------------------------------------------------
27
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM (CONTINUED)

Program Administrator will be liable for loss or damage due to error caused by
its negligence, bad faith or willful misconduct. Shares held in custody by the
Program Administrator are not subject to protection under the Securities
Investors Protection Act of 1970.

The participant should recognize that neither the Fund nor the Program
Administrator can provide any assurance of a profit or protection against loss
on any Shares purchased under the Program. A participant's investment in Shares
held in his Program account is no different than his investment in directly held
Shares in this regard. The participant bears the risk of loss and the benefits
of gain from market price changes with respect to all of his Shares. Neither the
Fund nor the Program Administrator can guarantee that Shares purchased under the
Program will, at any particular time, be worth more or less than their purchase
price. Each participant must make an independent investment decision based on
his own judgment and research.

While the Program Administrator hopes to continue the Program indefinitely, the
Program Administrator reserves the right to suspend or terminate the Program at
any time. It also reserves the right to make modifications to the Program.
Participants will be notified of any such suspension, termination or
modification in accordance with the terms and conditions of the Program. The
Program Administrator also reserves the right to terminate any participant's
participation in the Program at any time. Any question of interpretation arising
under the Program will be determined in good faith by the Program Administrator
and any such good faith determination will be final.

Any interested investor may participate in the Program. To participate in the
Program, an investor who is not already a registered owner of the Shares must
make an initial investment of at least $250.00. All other cash payments or bank
account deductions must be at least $100.00, up to a maximum of $100,000.00
annually. An interested investor may join the Program by reading the Program
description, completing and signing the enrollment form and returning it to the
Program Administrator. The enrollment form and information relating to the
Program (including the terms and conditions) may be obtained by calling the
Program Administrator at one of the following telephone numbers: First Time
Investors--(800) 337-9697; Current Shareholders--(800) 730-6001. All
correspondence regarding the Program should be directed to: BankBoston, N.A.,
InvestLink Program, P.O. Box 8040, Boston, MA 02266-8040.

- ---------------------------------------------
*InvestLink is a service mark of Boston EquiServe Limited Partnership.

- --------------------------------------------------------------------------------
28
<PAGE>
SUMMARY OF GENERAL INFORMATION

The Fund--The Latin America Investment Fund, Inc.--is a closed-end,
non-diversified management investment company whose shares trade on the New York
Stock Exchange. Its investment objective is long-term capital appreciation
through investments primarily in Latin American equity and debt securities. The
Fund is managed and advised by Credit Suisse Asset Management ("CSAM"), formerly
known as BEA Associates. CSAM is a diversified asset manager, handling equity,
balanced, fixed income, international and derivative based accounts. Portfolios
include international and emerging market investments, common stocks, taxable
and non-taxable bonds, options, futures and venture capital. CSAM manages money
for corporate pension and profit-sharing funds, public pension funds, union
funds, endowments and other charitable institutions and private individuals. As
of June 30, 1999, CSAM-Americas managed approximately $42.8 billion in assets.

SHAREHOLDER INFORMATION

The market price is published in: THE NEW YORK TIMES (daily) under the
designation "LatInv" and THE WALL STREET JOURNAL (daily), and BARRON'S (each
Monday) under the designation "LatinAmFd". The Fund's New York Stock Exchange
trading symbol is LAM. Weekly comparative net asset value (NAV) and market price
information about The Latin America Investment Fund, Inc.'s shares are published
each Sunday in THE NEW YORK TIMES and each Monday in THE WALL STREET JOURNAL and
BARRON'S, as well as other newspapers, in a table called "Closed-End Funds."

THE CSAM GROUP OF FUNDS

LITERATURE REQUEST--Call today for free descriptive information on the
closed-end funds listed below at 1-800-293-1232 or visit our website on the
Internet: http://www.cefsource.com.

CLOSED-END FUNDS
SINGLE COUNTRY
The Brazilian Equity Fund, Inc. (BZL)
The Chile Fund, Inc. (CH)
The First Israel Fund, Inc. (ISL)
The Indonesia Fund, Inc. (IF)
The Portugal Fund, Inc. (PGF)

MULTIPLE COUNTRY
The Emerging Markets Infrastructure Fund, Inc. (EMG)
The Emerging Markets Telecommunications Fund, Inc. (ETF)
The Latin America Equity Fund, Inc. (LAQ)

FIXED INCOME
Credit Suisse Asset Management Income Fund, Inc. (CIK)
Credit Suisse Asset Management Strategic Global Income Fund, Inc. (CGF)

Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that The Latin America Investment Fund, Inc.
may from time to time purchase shares of its capital stock in the open market.

- --------------------------------------------------------------------------------
<PAGE>
DIRECTORS AND CORPORATE OFFICERS

Dr. Enrique R. Arzac Director
James J. Cattano Director
Peter A. Gordon Director
George W. Landau Director
Riordan Roett Director
Martin M. Torino Director
William W. Priest, Jr. Chairman of the Board of Directors
Richard W. Watt President, Chief Investment Officer
and Director
Emily Alejos Investment Officer
Hal Liebes Senior Vice President
Michael A. Pignataro Chief Financial Officer and
Secretary
Rocco A. Del Guercio Vice President
Robert M. Rizza Treasurer

INVESTMENT ADVISERS

Credit Suisse Asset Management
One Citicorp Center
153 East 53rd Street
New York, NY 10022

Salomon Brothers Asset Management Inc.
7 World Trade Center
New York, NY 10048

ADMINISTRATOR

Bear Stearns Funds Management Inc.
575 Lexington Avenue
New York, NY 10022

CUSTODIAN

Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109

SHAREHOLDER SERVICING AGENT

BankBoston, N.A.
P.O. Box 1865
Mail Stop 45-02-62
Boston, MA 02105-1865

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA 19103

LEGAL COUNSEL

Willkie Farr & Gallagher
787 Seventh Avenue
New York, NY 10019-6099

This report, including the financial statements herein, is sent to the
shareholders of the Fund for their information. The financial information
included herein is taken from the records of the Fund without examination by
independent accountants who do not express an opinion thereon. It is not a
prospectus, circular or representation intended for use in the purchase or sale
of shares of the Fund or of any securities mentioned in this report.

[LOGO]

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3914-SAR-99