<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 EQUITY 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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(3) Filing Party:
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(4) Date Filed:
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<PAGE>
THE LATIN AMERICA EQUITY FUND
- --------------------------------------------------------------------------------
CREDIT SUISSE ASSET MANAGEMENT
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
FUND OBJECTIVES
THE LATIN AMERICA EQUITY FUND, INC. (NYSE: LAQ) 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 80% of its total assets in Argentina, Brazil,
Chile, and Mexico
- - The Fund may invest up to 20% of its assets in corporate and government
debt securities of Latin American issuers; of this amount, up to 15% may be
invested in external debt obligations issued or guaranteed by Latin America
governments of governmental entities
- - No more than 10% of the Fund's assets will be invested in private equity
securities
2
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NAV/MARKET PRICE COMPARISON*
DATE OF INCEPTION: 10/30/91 TICKER: LAQ
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>
10/22/91 10.11%
11/1/91 0.86%
11/8/91 -7.84%
11/15/91 -5.41%
11/22/91 -9.81%
11/29/91 -12.00%
12/6/91 -5.36%
12/13/91 -13.58%
12/20/91 -9.17%
12/27/91 -9.17%
12/31/91 -10.89%
1/3/92 -7.35%
1/10/92 -7.64%
1/17/92 -11.77%
1/24/92 -11.17%
1/31/92 -6.14%
2/7/92 -5.12%
2/14/92 -6.30%
2/21/92 -8.44%
2/28/92 1.41%
3/6/92 -5.22%
3/13/92 -4.53%
3/20/92 -6.02%
3/27/92 -6.28%
3/31/92 -6.32%
4/3/92 -8.46%
4/10/92 -7.79%
4/17/92 -6.36%
4/24/92 -6.33%
4/30/92 -6.60%
5/1/92 -7.36%
5/8/92 -9.68%
5/15/92 -9.78%
5/22/92 -9.02%
5/29/92 -8.09%
6/5/92 -9.32%
6/12/92 -7.29%
6/19/92 -5.09%
6/26/92 -4.13%
6/30/92 -2.30%
7/2/92 -2.38%
7/10/92 -11.23%
7/17/92 -10.42%
7/24/92 -6.68%
7/31/92 -3.68%
8/7/92 -4.88%
8/14/92 -1.68%
8/21/92 -6.71%
8/28/92 -8.48%
8/31/92 -9.46%
9/4/92 -3.66%
9/11/92 -6.58%
9/18/92 -7.50%
9/25/92 -9.26%
9/30/92 -12.77%
10/9/92 -11.56%
10/16/92 -5.56%
10/23/92 -11.43%
10/30/92 -10.07%
11/6/92 -5.71%
11/13/92 -4.49%
11/20/92 -6.35%
11/27/92 -1.75%
11/30/92 -4.35%
12/4/92 -12.77%
12/11/92 -9.68%
12/18/92 -6.41%
12/24/92 -4.45%
12/31/92 -2.57%
1/8/93 -2.74%
1/15/93 -4.10%
1/22/93 -5.85%
1/29/93 -3.58%
2/5/93 -1.45%
2/12/93 1.58%
2/19/93 -1.22%
2/26/93 -2.10%
3/5/93 3.95%
3/12/93 2.80%
3/19/93 -1.38%
3/26/93 2.23%
3/31/93 -4.29%
4/2/93 -4.04%
4/8/93 -4.16%
4/16/93 -5.34%
4/23/93 -5.35%
4/30/93 -5.01%
5/7/93 0.03%
5/14/93 -5.03%
5/21/93 -7.56%
5/28/93 -6.54%
6/4/93 -9.43%
6/11/93 -6.92%
6/18/93 -6.91%
6/25/93 -5.13%
6/30/93 -5.68%
7/2/93 -5.93%
7/9/93 -6.74%
7/16/93 0.16%
7/23/93 -0.59%
7/30/93 -1.95%
8/6/93 -1.48%
8/13/93 -0.98%
8/20/93 -3.73%
8/27/93 -3.02%
8/31/93 0.49%
9/3/93 -2.82%
9/10/93 -5.56%
9/17/93 -5.03%
9/24/93 -8.04%
9/30/93 -4.98%
10/1/93 -3.09%
10/8/93 -0.98%
10/15/93 3.46%
10/22/93 3.95%
10/29/93 2.90%
11/5/93 -3.23%
11/12/93 1.21%
11/19/93 4.95%
11/26/93 8.29%
11/30/93 4.22%
12/3/93 7.47%
12/10/93 22.28%
12/17/93 14.60%
12/23/93 10.26%
12/31/93 13.89%
1/7/94 3.46%
1/14/94 9.00%
1/21/94 6.28%
1/28/94 19.93%
1/31/94 12.25%
2/4/94 6.46%
2/11/94 8.51%
2/18/94 14.94%
2/25/94 8.52%
2/28/94 5.46%
3/3/94 13.54%
3/10/94 11.42%
3/17/94 13.01%
3/25/94 7.20%
3/31/94 -0.74%
4/8/94 12.44%
4/15/94 10.40%
4/22/94 14.42%
4/29/94 9.92%
5/6/94 2.87%
5/13/94 4.68%
5/20/94 9.49%
5/27/94 10.26%
5/31/94 13.99%
6/3/94 10.21%
6/10/94 11.05%
6/17/94 8.15%
6/24/94 0.80%
6/30/94 5.84%
7/1/94 4.02%
7/8/94 4.59%
7/15/94 6.07%
7/22/94 7.09%
7/29/94 4.12%
8/5/94 2.35%
8/12/94 6.35%
8/19/94 0.17%
8/26/94 -3.77%
8/31/94 1.03%
9/2/94 -0.02%
09/09/94 -3.24%
09/16/94 -1.84%
9/23/94 1.97%
9/30/94 -6.15%
10/6/94 -9.62%
10/14/94 -12.94%
10/21/94 -12.61%
10/28/94 -16.92%
10/31/94 -14.05%
11/4/94 -6.16%
11/11/94 -5.89%
11/18/94 -16.28%
11/25/94 -12.14%
11/30/94 -14.47%
12/2/94 -13.74%
12/9/94 -18.02%
12/16/94 -10.53%
12/23/94 -7.59%
12/30/94 -1.65%
1/6/95 -0.75%
1/13/95 -1.55%
1/20/95 -2.88%
1/27/95 0.79%
1/31/95 3.09%
2/3/95 -4.45%
2/10/95 -5.94%
2/17/95 -5.91%
2/24/95 -5.40%
2/28/95 -3.64%
3/3/95 -7.93%
3/10/95 4.51%
3/17/95 -6.40%
3/24/95 -8.99%
3/31/95 1.05%
4/7/95 -0.50%
4/14/95 -6.73%
4/21/95 -2.63%
4/28/95 -1.71%
5/5/95 -3.23%
5/12/95 -7.00%
5/19/95 -3.85%
5/26/95 -2.43%
5/31/95 -6.72%
6/2/95 -5.36%
6/9/95 -11.58%
6/16/95 -12.03%
6/23/95 -15.75%
6/30/95 -11.05%
7/7/95 -2.04%
7/14/95 -6.49%
7/21/95 -7.81%
7/28/95 -4.87%
7/31/95 -5.47%
8/4/95 -8.37%
8/11/95 -10.44%
8/18/95 -8.50%
8/25/95 -13.50%
8/31/95 -11.38%
9/8/95 -13.27%
9/15/95 -12.13%
9/22/95 -10.49%
9/29/95 -14.29%
10/6/95 -16.07%
10/13/95 -17.21%
10/20/95 -15.91%
10/27/95 -15.64%
10/31/95 -11.62%
11/3/95 -14.18%
11/10/95 -14.65%
11/17/95 -15.61%
11/24/95 -9.71%
11/30/95 -10.23%
12/1/95 2.68%
12/8/95 -9.17%
12/15/95 -11.39%
12/22/95 -12.99%
12/29/95 -13.76%
1/5/96 -1.00%
1/12/96 -2.31%
1/19/96 -2.94%
1/26/96 -0.94%
1/31/96 0.09%
2/2/96 -1.92%
2/9/96 -3.14%
2/16/96 -3.06%
2/23/96 -3.79%
2/29/96 -6.87%
3/1/96 -6.59%
3/8/96 -8.74%
3/15/96 -6.33%
3/22/96 -7.96%
3/29/96 -9.59%
4/5/96 -9.20%
4/12/96 -11.16%
4/19/96 -10.06%
4/26/96 -13.30%
4/30/96 -13.40%
5/3/96 -13.47%
5/10/96 -12.95%
5/17/96 -11.13%
5/24/96 -9.36%
5/31/96 -10.61%
6/7/96 -11.77%
6/14/96 -10.92%
6/21/96 -14.02%
6/30/96 -13.17%
7/5/96 -15.39%
7/12/96 -16.95%
7/19/96 -18.66%
7/26/96 -15.73%
7/31/96 -17.55%
8/2/96 -17.58%
8/9/96 -15.84%
8/16/96 -17.05%
8/23/96 -15.65%
8/31/96 -15.25%
9/6/96 -14.34%
9/13/96 -13.82%
9/20/96 -16.18%
9/27/96 -13.99%
9/30/96 -14.77%
10/4/96 -15.42%
10/11/96 -12.67%
10/18/96 -17.44%
10/25/96 -17.61%
10/31/96 -18.07%
11/1/96 -17.81%
11/8/96 -19.28%
11/15/96 -20.67%
11/22/96 -17.17%
11/30/96 -18.58%
12/6/96 -18.85%
12/13/96 -17.83%
12/20/96 -16.87%
12/27/96 -18.01%
12/31/96 -17.11%
1/3/97 -16.86%
1/10/97 -13.82%
1/17/97 -12.06%
1/24/97 -14.44%
1/31/97 -13.36%
2/7/97 -14.62%
2/14/97 -11.47%
2/21/97 -11.29%
2/28/97 -15.64%
3/7/97 -13.86%
3/14/97 -15.55%
3/21/97 -16.85%
3/27/97 -18.42%
3/31/97 -16.80%
4/4/97 -16.93%
4/11/97 -16.85%
4/18/97 -14.54%
4/25/97 -15.90%
4/30/97 -17.90%
5/2/97 -17.72%
5/9/97 -19.67%
5/16/97 -15.09%
5/23/97 -14.49%
5/30/97 -16.06%
6/6/97 -17.18%
6/13/97 -18.22%
6/20/97 -17.60%
6/27/97 -14.10%
6/30/97 -13.63%
7/3/97 -15.03%
7/11/97 -15.74%
7/18/97 -17.19%
7/25/97 -15.64%
7/31/97 -14.84%
8/1/97 -14.05%
8/8/97 -17.09%
8/15/97 -16.03%
8/22/97 -18.99%
8/29/97 -19.14%
9/5/97 -18.79%
9/12/97 -19.08%
9/19/97 -19.29%
9/26/97 -19.11%
9/30/97 -19.95%
10/3/97 -20.38%
10/10/97 -19.90%
10/17/97 -21.77%
10/24/97 -22.60%
10/31/97 -23.28%
11/7/97 -22.32%
11/14/97 -21.41%
11/21/97 -22.92%
11/28/97 -22.44%
12/5/97 -20.16%
12/12/97 -21.70%
12/19/97 -21.92%
12/26/97 -20.70%
12/31/97 -20.51%
1/2/98 -22.37%
1/9/98 -20.65%
1/16/98 -18.27%
1/23/98 -17.78%
1/30/98 -16.80%
2/6/98 -15.16%
2/13/98 -17.80%
2/20/98 -17.28%
2/27/98 -17.45%
3/6/98 -17.51%
3/13/98 -19.28%
3/20/98 -18.07%
3/27/98 -18.01%
3/31/98 -19.20%
4/3/98 -19.41%
4/10/98 -20.91%
4/17/98 -20.64%
4/24/98 -19.50%
4/30/98 -20.16%
5/1/98 -19.46%
5/8/98 -18.83%
5/15/98 -21.17%
5/22/98 -21.45%
5/29/98 -23.22%
6/5/98 -22.78%
6/12/98 -23.30%
6/19/98 -24.38%
6/26/98 -21.16%
6/30/98 -22.57%
7/3/98 -22.56%
7/10/98 -21.10%
7/17/98 -22.40%
7/24/98 -21.21%
7/31/98 -21.99%
8/7/98 -22.74%
8/14/98 -25.66%
8/21/98 -25.04%
8/28/98 -26.08%
8/31/98 -28.53%
9/4/98 -32.37%
9/11/98 -27.04%
9/18/98 -30.48%
9/25/98 -29.85%
9/30/98 -29.91%
10/2/98 -29.18%
10/9/98 -30.04%
10/16/98 -26.87%
10/23/98 -27.56%
10/30/98 -26.64%
11/6/98 -23.71%
11/13/98 -21.94%
11/20/98 -23.58%
11/27/98 -23.21%
11/30/98 -23.34%
12/4/98 -23.38%
12/11/98 -25.85%
12/18/98 -25.52%
12/31/98 -28.55%
1/8/99 -24.56%
1/15/99 -26.99%
1/22/99 -24.67%
1/29/99 -25.68%
2/5/99 -22.04%
2/12/99 -23.81%
2/19/99 -22.67%
2/26/99 -22.04%
3/5/99 -24.92%
3/12/99 -21.06%
3/19/99 -22.09%
3/26/99 -23.84%
</TABLE>
PERFORMANCE RECORD: (US$)
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NAV (1) 93.30 4.53 61.97 1.80 -15.20 13.55 15.01 -40.62
MARKET PRICE (2) 71.01 9.23 61.53 6.68 -12.24 16.07 13.31 -39.59
MSCI LATIN (3) 48.97 13.37 53.92 0.64 -12.84 22.14 31.64 -35.11
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND DISTRIBUTION:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(PER SHARE US$) 0.07 7.71 0.75 3.27 0.24 0.06 1.66 0.11
</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 EQUITY 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 EQUITY FUND, INC. 10/26/91 13.59% 15.01% -40.62% 5.19%
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) 6/3/94 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 WAS A HORRIBLE YEAR FOR LATIN AMERICA EQUITY MARKETS.
- - LAQ's policy of being more fully invested proved to be the major reason for
underperformance
- - Mexican growth stocks (Femsa, Cifra, etc.) were crushed
- - Extreme volatility in Brazil made a stable investment strategy impossible
- - Growth stocks (telecoms and utilities) were derated in Brazil and Mescico
- - Being underweight Argentina also detracted from performance
4
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
CURRENT STRUCTURE AS OF 2/28/99
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 13.88%
Brazil 29.33%
Chile 9.11%
Jamaica 1.19%
Mexico 38.19%
Peru 5.39%
Venezuela 1.17%
Other* 1.74%
</TABLE>
* Other includes: Colombia and Latin America General
** A list of portfolio holdings for the preceding 12 months is available upon
request.
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
Name of Issuer Country of Issuer % of Total Portfolio+
<S> <C> <C>
Telefonos de Mexico S.A. de C.V. Mexico 7.3%
Telecomunicacoes Brasileiras S.A. Brazil 6.5%
Cia. Vale do Rio Doce Brazil 5.5%
Cifra S.A. de C.V. Mexico 4.7%
YPF S.A. Argentina 4.5%
Kimberly-Clark de Mexico SA Mexico 4.3%
Camuzzi Argentina S.A. Argentina 4.0%
Grupo Televisa S.A. Mexico 3.9%
Telecomunicacoes de Sao Paulo SA Brazil 3.5%
Cementos Mexicanos S.A. Mexico 3.1%
</TABLE>
+ excluding cash.
5
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
MANAGEMENT STYLE
- - Focus to providing a diversified portfolio of Latin equities
- - Active country and sector allocations
- - Relatively limited use of bonds
- - Concentrated bets on particular stocks are taken
- - Private equities typically less than 10% of the Fund
6
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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:
<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 EQUITY FUND, INC.
EMERGING MARKETS: HOW THE ASIAN CRISIS IMPACTS ON LATIN AMERICA
-----------------------
ECONOMIC CRISIS IN ASIA
-----------------------
Competitive Lower Commodity
Devaluations Prices
|
|
|
|
|
|
|
|
|
\ /
WORSENING EXTERNAL ACCOUNT
AND
WEAKER FISCAL BALANCES
8
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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>
GDP GROWTH (% CHANGE)
COUNTRY 1991 1992 1993 1994 1995 1996 1997 1998E 1999F 2000F
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ARGENTINA -1.8 10.6 9.6 5.7 8.0 -4.0 4.8 8.6 4.4 -2.1
BRAZIL -4.3 0.3 -0.8 4.2 5.9 4.2 2.8 3.7 0.5 -6.0
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
ECUADOR 3.0 4.9 3.6 2.0 4.3 2.3 2.0 3.4 0.7 -4.3
MEXICO 5.1 4.2 3.6 2.0 4.5 -6.2 5.1 7.0 4.9 1.2
PANAMA 8.1 9.4 8.2 5.5 2.9 1.8 2.4 4.4 3.5 2.5
PERU -3.8 2.9 -1.7 6.4 13.1 7.2 2.6 7.2 0.6 1.2
VENEZUELA 6.5 9.7 6.8 0.3 -2.3 3.7 -0.4 5.1 -0.7 -3.0
</TABLE>
Source: Salomon Smith Barney
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
9
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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)
US$ BILLION
<S> <C> <C> <C> <C> <C> <C> <C>
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
10
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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
11
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
BRAZILIAN BALANCE OF PAYMENTS, 1999
<TABLE>
<CAPTION>
ROLLOVER RATIO
<S> <C> <C> <C>
50% 65% 75%
USES OF FUNDS (US$ bn)
Current Account Deficit 20 20 20
Amortization of Medium and Long Term Debt 33 33 33
Of Which: Bank Debt 12 12 12
Suppliers Credit 8 8 8
Bonds, etc. 13 13 13
Puttable Corporate Debt 3 3 3
Short-term Debt 26 26 26
TOTAL 82 82 82
SOURCES OF FUNDS
Foreign Direct Investment 18 18 18
Multilateral Development Banks 6 6 6
Rollover of Bank Credit 19 25 29
Rollover of Suppliers Credit 4 5 6
TOTAL 47 54 59
ANTICIPATED FINANCING GAP 35 25 21
IMF/BIS SUPPORT TO END 1999 30 30 30
</TABLE>
12
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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: Salomon 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
13
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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: PROBABILITY OF A "MUDDLE THROUGH" SCENARIO IS INCREASING
14
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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>
Operational Balance as
Yearly % of GDP GDP, Annual Growth
Quarters 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 as a Trade Balance for Services, Income
Quarters % of GDP Past 12 Months and 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
15
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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>
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
16
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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 % of GDP GDP Annual Growth
Quarters 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 as Trade Balance for Services, Income
Quarters % of GDP Past 12 Months and 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
17
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
TELEBRAS
TELEBRAS
[GRAPH]
In the printed version of the document, a line graph appears which
depicts the following plot points:
<TABLE>
<CAPTION>
Date Brazilian Real Closing Price
<S> <C>
9-Sep-98 45.25
10-Sep-98 38
11-Sep-98 37
14-Sep-98 37
15-Sep-98 37
16-Sep-98 51
17-Sep-98 46
18-Sep-98 52
21-Sep-98 52
22-Sep-98 52
23-Sep-98 52
24-Sep-98 52
25-Sep-98 52
28-Sep-98 52
29-Sep-98 52
30-Sep-98 52
1-Oct-98 52
2-Oct-98 52
5-Oct-98 52
6-Oct-98 52
7-Oct-98 52
8-Oct-98 44
9-Oct-98 47.5
13-Oct-98 48.5
14-Oct-98 48.5
15-Oct-98 50.5
16-Oct-98 48
19-Oct-98 48
20-Oct-98 48.5
21-Oct-98 52
22-Oct-98 56
23-Oct-98 53.5
26-Oct-98 50
27-Oct-98 50.01
28-Oct-98 49.5
29-Oct-98 47.5
30-Oct-98 50.75
3-Nov-98 53.5
4-Nov-98 54
5-Nov-98 58.5
6-Nov-98 63.5
9-Nov-98 64
10-Nov-98 61.7
11-Nov-98 58
12-Nov-98 55.5
13-Nov-98 56
16-Nov-98 60
17-Nov-98 63.99
18-Nov-98 67
19-Nov-98 64.5
20-Nov-98 67
23-Nov-98 67
24-Nov-98 68
25-Nov-98 72
26-Nov-98 72.5
27-Nov-98 74
30-Nov-98 68.5
1-Dec-98 69
2-Dec-98 68
3-Dec-98 62
4-Dec-98 62
7-Dec-98 64
8-Dec-98 61.99
9-Dec-98 62
10-Dec-98 62
11-Dec-98 59
14-Dec-98 54
15-Dec-98 56
16-Dec-98 53.49
17-Dec-98 52.9
18-Dec-98 54.5
21-Dec-98 58
22-Dec-98 57.5
23-Dec-98 58.4
28-Dec-98 56
29-Dec-98 53.99
30-Dec-98 54
4-Jan-99 53
5-Jan-99 55
6-Jan-99 58
7-Jan-99 54.5
8-Jan-99 53
11-Jan-99 49.5
12-Jan-99 45.5
13-Jan-99 43
14-Jan-99 38.29
15-Jan-99 56
18-Jan-99 59.99
19-Jan-99 61.5
20-Jan-99 63.5
21-Jan-99 61
22-Jan-99 59
26-Jan-99 62
27-Jan-99 64
28-Jan-99 66
29-Jan-99 65
1-Feb-99 73
2-Feb-99 71
3-Feb-99 70
4-Feb-99 70
5-Feb-99 67.5
8-Feb-99 69
9-Feb-99 67.5
10-Feb-99 68
11-Feb-99 70
12-Feb-99 70.7
17-Feb-99 69.7
18-Feb-99 69.01
19-Feb-99 70.5
22-Feb-99 71.5
23-Feb-99 70.99
24-Feb-99 70
25-Feb-99 68
26-Feb-99 70.5
1-Mar-99 71.99
2-Mar-99 71.44
3-Mar-99 71.5
4-Mar-99 75
5-Mar-99 75.5
8-Mar-99 77.13
9-Mar-99 75.39
10-Mar-99 77.2
11-Mar-99 77.4
12-Mar-99 75.5
15-Mar-99 78.55
16-Mar-99 83.49
17-Mar-99 82.49
18-Mar-99 87
19-Mar-99 86.5
22-Mar-99 83
23-Mar-99 81.49
24-Mar-99 82.99
25-Mar-99 88.47
26-Mar-99 87
29-Mar-99 85.5
30-Mar-99 86
</TABLE>
- - From centralized state-owned utility to 12 new independently managed
privatized companies
- - Twelve new managements including several foreign strategic operators (I.e.
MCI Worldcom, Tisa, Bell Canada)
- - Growth fueled by pent-up demand (10% fixed line penetration) and efficiency
gains
- - TBH provides exposure to all segments of telecommunications
- - Cheap valuations and debt free trading below replacement value of the
assets
Source: Factset
The information provided in this report should not be considered a
recommendation to purchase or sell any particular security. There is no
assurance that any security discussed herein will remain in an account's
portfolio at the time you receive this report or that securities sold have not
been repurchased. The securities discussed do not represent an account's entire
portfolio and in the aggregate may represent only a small percentage of an
account's portfolio holdings. It should not be assumed that any of the
securities transactions or holdings discussed were or will prove to be
profitable, or that the investment recommendations or decisions we make in the
future will be profitable or will equal the investment performance of the
securities discussed herein.
18
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
YPF
YPF
[GRAPH]
In the printed version of the document, a line graph appears which
depicts the following plot points:
<TABLE>
<CAPTION>
Date Closing Price U.S. $
<S> <C>
27-Mar-97 26.5
31-Mar-97 26.5
1-Apr-97 27.2344
2-Apr-97 27.375
3-Apr-97 26.875
4-Apr-97 27
7-Apr-97 27
8-Apr-97 26.875
9-Apr-97 26.75
10-Apr-97 26.75
11-Apr-97 26.25
14-Apr-97 25.875
15-Apr-97 26.25
16-Apr-97 26.5156
17-Apr-97 26.75
18-Apr-97 26.625
21-Apr-97 26.75
22-Apr-97 27.0156
23-Apr-97 27.625
24-Apr-97 27.75
25-Apr-97 27.5
28-Apr-97 27.25
29-Apr-97 27.75
30-Apr-97 27.625
1-May-97 27.375
2-May-97 28
5-May-97 28.125
6-May-97 28
7-May-97 27.875
8-May-97 28.375
9-May-97 28.5
12-May-97 28.625
13-May-97 29
14-May-97 28.875
15-May-97 29.125
16-May-97 29
19-May-97 29
20-May-97 29.375
21-May-97 30.125
22-May-97 29.875
23-May-97 29.75
27-May-97 29.8125
28-May-97 30
29-May-97 29.625
30-May-97 29.875
2-Jun-97 30.25
3-Jun-97 30.5
4-Jun-97 30.75
5-Jun-97 30.625
6-Jun-97 30.625
9-Jun-97 30.5
10-Jun-97 30.875
11-Jun-97 30.625
12-Jun-97 30.75
13-Jun-97 31.125
16-Jun-97 31.125
17-Jun-97 31.25
18-Jun-97 31.375
19-Jun-97 31.625
20-Jun-97 31.75
23-Jun-97 31.375
24-Jun-97 31.375
25-Jun-97 31.3125
26-Jun-97 31.0625
27-Jun-97 30.625
30-Jun-97 30.75
1-Jul-97 31
2-Jul-97 30.875
3-Jul-97 30.9844
7-Jul-97 31.5
8-Jul-97 31.5
9-Jul-97 31.625
10-Jul-97 31.4375
11-Jul-97 31.125
14-Jul-97 30.6875
15-Jul-97 30.4375
16-Jul-97 30
17-Jul-97 30.125
18-Jul-97 29.75
21-Jul-97 28.9375
22-Jul-97 29.625
23-Jul-97 30.25
24-Jul-97 30.5
25-Jul-97 30.5625
28-Jul-97 31
29-Jul-97 31.6875
30-Jul-97 32
31-Jul-97 32.3125
1-Aug-97 32.25
4-Aug-97 31.6875
5-Aug-97 31.9375
6-Aug-97 32.8125
7-Aug-97 32.375
8-Aug-97 32
11-Aug-97 32.0625
12-Aug-97 32.0625
13-Aug-97 31.875
14-Aug-97 31.8125
15-Aug-97 31.375
18-Aug-97 31.125
19-Aug-97 31.6875
20-Aug-97 32.262
21-Aug-97 32.75
22-Aug-97 32.25
25-Aug-97 32.262
26-Aug-97 32.875
27-Aug-97 33.625
28-Aug-97 33.4375
29-Aug-97 32.5625
2-Sep-97 33.3125
3-Sep-97 34.25
4-Sep-97 34.4375
5-Sep-97 34.4375
8-Sep-97 34.8125
9-Sep-97 34.9375
10-Sep-97 33.8125
11-Sep-97 33.375
12-Sep-97 34.125
15-Sep-97 33.875
16-Sep-97 34.625
17-Sep-97 34.75
18-Sep-97 35.4375
19-Sep-97 35.3125
22-Sep-97 35.375
23-Sep-97 35.75
24-Sep-97 36.875
25-Sep-97 37.125
26-Sep-97 37.25
29-Sep-97 37
30-Sep-97 36.8125
1-Oct-97 36.5
2-Oct-97 36.6875
3-Oct-97 36.4375
6-Oct-97 36.5
7-Oct-97 36.8125
8-Oct-97 36.5
9-Oct-97 36.625
10-Oct-97 36.625
13-Oct-97 36.75
14-Oct-97 36.75
15-Oct-97 37
16-Oct-97 37.4375
17-Oct-97 37.375
20-Oct-97 37.5
21-Oct-97 38.125
22-Oct-97 38
23-Oct-97 35.875
24-Oct-97 34.4375
27-Oct-97 30.5
28-Oct-97 32.625
29-Oct-97 32.8125
30-Oct-97 31.0625
31-Oct-97 32
3-Nov-97 33.5
4-Nov-97 33.637
5-Nov-97 33.0625
6-Nov-97 33
7-Nov-97 31.762
10-Nov-97 31.5625
11-Nov-97 31.375
12-Nov-97 30.125
13-Nov-97 30.6875
14-Nov-97 30.875
17-Nov-97 31.9375
18-Nov-97 31.75
19-Nov-97 32.012
20-Nov-97 32.75
21-Nov-97 33.9375
24-Nov-97 33
25-Nov-97 33.125
26-Nov-97 33.875
28-Nov-97 33.625
1-Dec-97 33
2-Dec-97 33
3-Dec-97 33.3125
4-Dec-97 34.125
5-Dec-97 34.625
8-Dec-97 35.5
9-Dec-97 34.9375
10-Dec-97 33.25
11-Dec-97 31.375
12-Dec-97 31.0625
15-Dec-97 32.9375
16-Dec-97 33.25
17-Dec-97 32.9375
18-Dec-97 31.875
19-Dec-97 31.75
22-Dec-97 32
23-Dec-97 31.625
24-Dec-97 31.5
26-Dec-97 31.5
29-Dec-97 32.8125
30-Dec-97 33.625
31-Dec-97 34.1875
2-Jan-98 34.25
5-Jan-98 33.5625
6-Jan-98 31.4375
7-Jan-98 31.875
8-Jan-98 30.1758
9-Jan-98 29.3125
12-Jan-98 29.5156
13-Jan-98 31.1875
14-Jan-98 31.9375
15-Jan-98 31.8125
16-Jan-98 31.9375
20-Jan-98 32.0625
21-Jan-98 31.5625
22-Jan-98 29.9375
23-Jan-98 29.0625
26-Jan-98 29.5625
27-Jan-98 30
28-Jan-98 30.8125
29-Jan-98 30.5625
30-Jan-98 30.4375
2-Feb-98 31.5625
3-Feb-98 32.125
4-Feb-98 32
5-Feb-98 32.375
6-Feb-98 32.6875
9-Feb-98 32.25
10-Feb-98 32.5625
11-Feb-98 32
12-Feb-98 31.375
13-Feb-98 30.9375
17-Feb-98 30.9375
18-Feb-98 30.9375
19-Feb-98 31.5
20-Feb-98 31.25
23-Feb-98 30.5
24-Feb-98 30.375
25-Feb-98 31
26-Feb-98 31.4375
27-Feb-98 31.625
2-Mar-98 31.875
3-Mar-98 31.9375
4-Mar-98 32.1875
5-Mar-98 31.9375
6-Mar-98 32.0625
9-Mar-98 31.4375
10-Mar-98 31.5
11-Mar-98 32.3125
12-Mar-98 32.8125
13-Mar-98 33
16-Mar-98 32.6875
17-Mar-98 31.6875
18-Mar-98 31.9375
19-Mar-98 31.875
20-Mar-98 32.625
23-Mar-98 34.5
24-Mar-98 33.8125
25-Mar-98 34
26-Mar-98 34.5
27-Mar-98 34.125
30-Mar-98 34.3125
31-Mar-98 34
1-Apr-98 34.25
2-Apr-98 34.5625
3-Apr-98 33.8125
6-Apr-98 33.25
7-Apr-98 32.5
8-Apr-98 32.5625
9-Apr-98 33.125
13-Apr-98 33.0625
14-Apr-98 33.3125
15-Apr-98 33.5
16-Apr-98 33.8125
17-Apr-98 34.1875
20-Apr-98 34.125
21-Apr-98 33.875
22-Apr-98 33.6875
23-Apr-98 33.3125
24-Apr-98 33.0625
27-Apr-98 32.75
28-Apr-98 33.8125
29-Apr-98 34.125
30-Apr-98 34.875
1-May-98 36
4-May-98 35.75
5-May-98 35.625
6-May-98 34.875
7-May-98 34.625
8-May-98 35.125
11-May-98 35
12-May-98 34.875
13-May-98 34.75
14-May-98 34.75
15-May-98 35
18-May-98 33.5
19-May-98 33.5625
20-May-98 33.8125
21-May-98 33.5
22-May-98 32.6875
26-May-98 31.4375
27-May-98 31.8125
28-May-98 31.625
29-May-98 31.125
1-Jun-98 30.375
2-Jun-98 31.4375
3-Jun-98 31.3125
4-Jun-98 31.625
5-Jun-98 31.75
8-Jun-98 31.625
9-Jun-98 30.875
10-Jun-98 30.1875
11-Jun-98 30.0625
12-Jun-98 30.1875
15-Jun-98 29.25
16-Jun-98 29
17-Jun-98 30
18-Jun-98 28.8125
19-Jun-98 28.875
22-Jun-98 28.6875
23-Jun-98 29.6875
24-Jun-98 29.625
25-Jun-98 29.1875
26-Jun-98 29.125
29-Jun-98 29.5
30-Jun-98 30.0625
1-Jul-98 30.75
2-Jul-98 30.875
6-Jul-98 30.5
7-Jul-98 30.3125
8-Jul-98 30.375
9-Jul-98 30.0625
10-Jul-98 30.625
13-Jul-98 31.25
14-Jul-98 31.6875
15-Jul-98 31.8125
16-Jul-98 31.5195
17-Jul-98 32.125
20-Jul-98 30.9883
21-Jul-98 31.1875
22-Jul-98 30.625
23-Jul-98 30.1875
24-Jul-98 30.25
27-Jul-98 29.875
28-Jul-98 29.3125
29-Jul-98 29.3125
30-Jul-98 29.8125
31-Jul-98 29.25
3-Aug-98 29
4-Aug-98 27.25
5-Aug-98 26.9375
6-Aug-98 27.125
7-Aug-98 26.6875
10-Aug-98 26.4805
11-Aug-98 26.875
12-Aug-98 26
13-Aug-98 26.25
14-Aug-98 27
17-Aug-98 26.1875
18-Aug-98 26
19-Aug-98 26.125
20-Aug-98 24.5
21-Aug-98 22.0625
24-Aug-98 22.75
25-Aug-98 22.5625
26-Aug-98 22.5
27-Aug-98 21
28-Aug-98 23.125
31-Aug-98 22.125
1-Sep-98 24.75
2-Sep-98 24.25
3-Sep-98 22.125
4-Sep-98 21.75
8-Sep-98 22
9-Sep-98 21.25
10-Sep-98 20
11-Sep-98 20.625
14-Sep-98 22
15-Sep-98 25
16-Sep-98 24.0625
17-Sep-98 23.25
18-Sep-98 23.5
21-Sep-98 22.9375
22-Sep-98 24.9375
23-Sep-98 26.4375
24-Sep-98 25.8125
25-Sep-98 26.1875
28-Sep-98 26.625
29-Sep-98 26.875
30-Sep-98 26
1-Oct-98 23.75
2-Oct-98 24.875
5-Oct-98 23
6-Oct-98 23.75
7-Oct-98 23.4375
8-Oct-98 23.3125
9-Oct-98 25.25
12-Oct-98 26.375
13-Oct-98 25.5
14-Oct-98 25.1875
15-Oct-98 27.625
16-Oct-98 26.625
19-Oct-98 27.25
20-Oct-98 28
21-Oct-98 28.5
22-Oct-98 28.1875
23-Oct-98 27.625
26-Oct-98 27.25
27-Oct-98 27.6875
28-Oct-98 27.375
29-Oct-98 27.375
30-Oct-98 28.9375
2-Nov-98 29.625
3-Nov-98 29.875
4-Nov-98 29.75
5-Nov-98 29.5625
6-Nov-98 28.9375
9-Nov-98 29
10-Nov-98 29.375
11-Nov-98 29.1875
12-Nov-98 28
13-Nov-98 28.4375
16-Nov-98 28.5625
17-Nov-98 28.3125
18-Nov-98 28.5
19-Nov-98 29.6875
20-Nov-98 30.75
23-Nov-98 29.625
24-Nov-98 30.4375
25-Nov-98 30.0625
27-Nov-98 30.9375
30-Nov-98 29.75
1-Dec-98 28.875
2-Dec-98 28.125
3-Dec-98 26.6875
4-Dec-98 26.75
7-Dec-98 27
8-Dec-98 26
9-Dec-98 26.625
10-Dec-98 26.5
11-Dec-98 26.375
14-Dec-98 25.25
15-Dec-98 25.5625
16-Dec-98 26.5
17-Dec-98 26.75
18-Dec-98 27.0625
21-Dec-98 27.6875
22-Dec-98 27.9375
23-Dec-98 28.5
24-Dec-98 28.625
28-Dec-98 28.125
29-Dec-98 28.375
30-Dec-98 27.75
31-Dec-98 27.9375
4-Jan-99 29.125
5-Jan-99 29.125
6-Jan-99 32
7-Jan-99 31.9375
8-Jan-99 31.3125
11-Jan-99 31
12-Jan-99 29.6875
13-Jan-99 26.625
14-Jan-99 27.375
15-Jan-99 29
19-Jan-99 30.4375
20-Jan-99 31
21-Jan-99 29.125
22-Jan-99 28.875
25-Jan-99 29.125
26-Jan-99 28.625
27-Jan-99 30.25
28-Jan-99 30.375
29-Jan-99 31.875
1-Feb-99 31.8125
2-Feb-99 31.75
3-Feb-99 32.75
4-Feb-99 31.625
5-Feb-99 31.3125
8-Feb-99 31.25
9-Feb-99 30.625
10-Feb-99 30.5625
11-Feb-99 29.8125
12-Feb-99 29.4375
16-Feb-99 29.5625
17-Feb-99 29.1875
18-Feb-99 29.1875
19-Feb-99 29.375
22-Feb-99 29.25
23-Feb-99 29.1875
24-Feb-99 28.6875
25-Feb-99 28.5
26-Feb-99 29
1-Mar-99 29.4375
2-Mar-99 29.6875
3-Mar-99 30.375
4-Mar-99 31
5-Mar-99 31.375
8-Mar-99 31
9-Mar-99 30.6875
10-Mar-99 31.625
11-Mar-99 30.9375
12-Mar-99 30.6875
15-Mar-99 30.375
16-Mar-99 29.875
17-Mar-99 30.625
18-Mar-99 31.0625
19-Mar-99 31.25
22-Mar-99 30.75
23-Mar-99 30.8125
24-Mar-99 30.5625
25-Mar-99 30.625
26-Mar-99 30.75
29-Mar-99 31.375
30-Mar-99 31.4375
</TABLE>
- - The stock is attractive from both a bottom up and top-down perspective
- - Management is top quality with a strong orientation towards adding
shareholder value
- - Improving oil prices offer upside potential and earnings appreciation
- - Dollar revenue and local currency costs make this company a perfect hedge
- - Repsol's potential full acquisition adds to capital gains windfall
Source: Factset
The information provided in this report should not be considered a
recommendation to purchase or sell any particular security. There is no
assurance that any security discussed herein will remain in an account's
portfolio at the time you receive this report or that securities sold have not
been repurchased. The securities discussed do not represent an account's entire
portfolio and in the aggregate may represent only a small percentage of an
account's portfolio holdings. It should not be assumed that any of the
securities transactions or holdings discussed were or will prove to be
profitable, or that the investment recommendations or decisions we make in the
future will be profitable or will equal the investment performance of the
securities discussed herein.
19
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
CEMEX
CEMEX
[GRAPH]
In the printed version of the document, a line graph appears which
depicts the following plot points:
<TABLE>
<CAPTION>
Date Closing Price U.S. $
<S> <C>
28-Mar-97 8.288
4-Apr-97 7.958
11-Apr-97 7.865
18-Apr-97 7.723
25-Apr-97 7.633
2-May-97 7.292
9-May-97 7.87
16-May-97 7.895
23-May-97 8.149
30-May-97 8.148
6-Jun-97 8.569
13-Jun-97 8.847
20-Jun-97 9.526
27-Jun-97 9.858
4-Jul-97 10.011
11-Jul-97 11.352
18-Jul-97 10.785
25-Jul-97 11.067
1-Aug-97 11.482
8-Aug-97 12.132
15-Aug-97 12.1563
22-Aug-97 12.289
29-Aug-97 11.004
5-Sep-97 11.763
12-Sep-97 11.152
19-Sep-97 11.858
26-Sep-97 11.8125
3-Oct-97 11.595
10-Oct-97 11.054
17-Oct-97 10.945
24-Oct-97 10.318
31-Oct-97 8.693
7-Nov-97 8.749
14-Nov-97 7.856
21-Nov-97 9.288
28-Nov-97 9.865
5-Dec-97 10.341
12-Dec-97 9.896
19-Dec-97 10.075
26-Dec-97 10.13
2-Jan-98 10.658
9-Jan-98 8.908
16-Jan-98 8.722
23-Jan-98 8.449
30-Jan-98 8.463
6-Feb-98 9.48
13-Feb-98 8.796
20-Feb-98 8.475
27-Feb-98 9.62
6-Mar-98 9.567
13-Mar-98 9.92
20-Mar-98 9.901
27-Mar-98 11.106
3-Apr-98 10.575
10-Apr-98 11.311
17-Apr-98 11.167
24-Apr-98 11.512
1-May-98 12.006
8-May-98 11.322
15-May-98 10.948
22-May-98 10.319
29-May-98 9.732
5-Jun-98 10.668
12-Jun-98 8.945
19-Jun-98 9.666
26-Jun-98 9.022
3-Jul-98 9.197
10-Jul-98 9.892
17-Jul-98 10.029
24-Jul-98 9.644
31-Jul-98 8.497
7-Aug-98 7.928
14-Aug-98 6.933
21-Aug-98 6.347
28-Aug-98 5.187
4-Sep-98 4.634
11-Sep-98 3.792
18-Sep-98 4.76
25-Sep-98 5.349
2-Oct-98 4.738
9-Oct-98 4.461
16-Oct-98 5.222
23-Oct-98 5.54
30-Oct-98 5.433
6-Nov-98 6.277
13-Nov-98 5.892
20-Nov-98 6.121
27-Nov-98 6.168
4-Dec-98 5.326
11-Dec-98 5.289
18-Dec-98 5.252
25-Dec-98 5.202
1-Jan-99 4.944
8-Jan-99 4.712
15-Jan-99 4.057
22-Jan-99 4.304
29-Jan-99 5.276
5-Feb-99 5.731
12-Feb-99 5.918
19-Feb-99 5.946
26-Feb-99 6.138
5-Mar-99 6.327
12-Mar-99 6.9219
19-Mar-99 7.093
26-Mar-99 7.702
31-Mar-99 8.196
</TABLE>
- - Third largest cement producer in the world and the second-largest
multinational corporation in Latin America
- - Almost 50% of total sales and cash flow is generated in Mexico, where Cemex
is unquestionable leader and price setter
- - A combination of low unemployment, real wage growth, decreasing inflation
and interest rates, and strong Peso allow Cemex to enjoy impressive pricing
gains and margin expansion
- - An environment of positive economic growth and increasing consumer
confidence contributes to stable volume growth and improving capital
structure
- - Diversification and expansion of operations through timely acquisitions in
Colombia, Philippines and Indonesia
Source: Factset
The information provided in this report should not be considered a
recommendation to purchase or sell any particular security. There is no
assurance that any security discussed herein will remain in an account's
portfolio at the time you receive this report or that securities sold have not
been repurchased. The securities discussed do not represent an account's entire
portfolio and in the aggregate may represent only a small percentage of an
account's portfolio holdings. It should not be assumed that any of the
securities transactions or holdings discussed were or will prove to be
profitable, or that the investment recommendations or decisions we make in the
future will be profitable or will equal the investment performance of the
securities discussed herein.
20
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
ESTIMATES ARE REVISED DOWNWARDS BUT SIGNIFICANTLY LAG PRICES
EARNINGS ESTIMATES FOR LATIN AMERICA
[GRAPH]
In the printed version of the document, a line graph appears which
depicts the following plot points:
<TABLE>
<CAPTION>
Date
Estimate 98 Earnings 99 Earnings
Made Price Index Estimate Estimate
<S> <C> <C> <C>
2-Jan-98 100.9 100
9-Jan-98 88.22 98.01
16-Jan-98 89.74 97.68
23-Jan-98 88.19 96.26
30-Jan-98 89.42 95.64
9-Feb-98 92.75 94.71
17-Feb-98 92.37 95.07
23-Feb-98 91.98 94.98
26-Feb-98 93.47 94.64
6-Mar-98 96.44 94.64
16-Mar-98 98.34 93.46
19-Mar-98 99.1 93.38
26-Mar-98 100.86 92.86
2-Apr-98 100.82 91.53 100
9-Apr-98 99.94 90.81 98.66
16-Apr-98 100.33 90.76 98.39
23-Apr-98 99.68 90.81 98.46
30-Apr-98 99.74 91.34 99.88
7-May-98 96.58 91.27 99.23
14-May-98 92.73 91.55 98.93
21-May-98 87.75 91.19 98.86
28-May-98 84.89 91.06 98.4
4-Jun-98 85.54 91.28 98.46
11-Jun-98 81.95 91.36 97.94
18-Jun-98 79.27 89.35 95.21
25-Jun-98 78.99 89.16 95.02
1-Jul-98 81.28 88.9 95.13
10-Jul-98 83.91 88.42 94.93
17-Jul-98 88.74 87.53 93.88
24-Jul-98 85.16 86.92 93.29
30-Jul-98 85.04 87.03 93.44
7-Aug-98 75.37 86.44 93.67
13-Aug-98 70.36 86.63 93.67
20-Aug-98 66.1 85.89 93.02
27-Aug-98 55.67 85.79 92.92
4-Sep-98 50.72 85.57 92.85
9-Sep-98 50.03 84.95 92.01
16-Sep-98 55.28 83.83 90.55
24-Sep-98 58.3 81.6 88.82
1-Oct-98 53.67 81.57 88.82
8-Oct-98 53.58 81.08 88.31
15-Oct-98 59.06 80.39 87.89
23-Oct-98 62.29 79.58 87.45
30-Oct-98 61.74 77.96 85.38
6-Nov-98 68.42 77.34 84.99
13-Nov-98 64.74 76.64 84.19
18-Nov-98 68.12 76.58 84.23
25-Nov-98 69.6 76.26 83.88
2-Dec-98 66.28 75.82 83.68
9-Dec-98 62.77 75.15 83.16
16-Dec-98 58.76 74.25 81.22
23-Dec-98 62.42 73.86 81.19
30-Dec-98 61.06 73.13 79.99
8-Jan-99 59.39 72.25 78.93
15-Jan-99 52.13 71.35 77.99
22-Jan-99 50.83 70.52 68.51
29-Jan-99 52.55 69.6 68.19
5-Feb-99 55.02 69.73 67.99
11-Feb-99 56.6 69.69 67.9
18-Feb-99 56.12 68.89 64.82
25-Feb-99 54.78 67.47 64.58
4-Mar-99 55.9 66.29 64.35
11-Mar-99 60.97 64.92 63.77
18-Mar-99 63.99 65.14 63.92
25-Mar-99 64.46 65.34 62.7
</TABLE>
Source: Bear Stearns
- - Either the markets are overly efficient or analysts are way behind the
curve
- - The potential for devaluation creates overwhelming uncertainty
- - Investors rush to quality, paying up for visibility
21
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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
22
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
PORTFOLIO SUMMARY AS OF 3/30/99
<TABLE>
<CAPTION>
COUNTRY % MSCI INDEX % EQUITIES % PRIVATE PLACEMENT % CASH
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Argentina 12.6 9.3 3.5 0.0
Brazil 29.4 26.6 0.0 0.1
Chile 13.6 9.1 0.0 0.0
Colombia 1.7 0.2 0.0 0.0
Costa Rica 0.0 0.0 0.0 0.0
Equador 0.0 0.0 0.0 0.0
Latin America 0.0 0.0 3.3 0.0
Mexico 37.8 34.7 0.0 0.0
Panama 0.0 0.0 0.0 0.0
Peru 2.7 4.3 0.6 0.0
Venezuela 2.2 0.9 0.3 0.0
United States 0.0 0.0 0.5 6.6
----- ---- ---- ----
Total 100.0 85.1 8.2 6.7
</TABLE>
23
<PAGE>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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
- - High yields on sovereign debt look compelling and will likely lead any
equity market rally
- - Maintain high exposure to bonds to differentiate and offer a balanced Fund
24
