<PAGE>
[PHOTO]
THE LATIN AMERICA
EQUITY FUND, INC.
-----------------------------
SEMI-ANNUAL REPORT
JUNE 30, 2000
<PAGE>
CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders..................................................................... 1
Portfolio Summary.......................................................................... 6
Schedule of Investments.................................................................... 8
Statement of Assets and Liabilities........................................................ 12
Statement of Operations.................................................................... 13
Statement of Changes in Net Assets......................................................... 14
Financial Highlights....................................................................... 16
Notes to Financial Statements.............................................................. 18
Results of Annual Meeting of Shareholders.................................................. 24
Description of InvestLink-SM- Program...................................................... 25
</TABLE>
PICTURED ON THE COVER IS CHICHEN ITZA; CHACMOOL ON THE TEMPLE OF THE WARRIORS, A
FAMOUS SIGHT IN MEXICO.
<PAGE>
LETTER TO SHAREHOLDERS
August 4, 2000
DEAR SHAREHOLDER:
I am writing to report on the activities of The Latin America Equity Fund, Inc.
(the "Fund") for the six months ended June 30, 2000.
At June 30, 2000, the Fund's net assets were $107.5 million. The Fund's net
asset value ("NAV") was $17.53 per share as compared to $17.04 at December 31,
1999.
PERFORMANCE: EFFECTIVE STOCK SELECTION
For the six months ended June 30, 2000, the Fund's total return, based on NAV
was 2.9%, versus -3.8% for the Morgan Stanley Capital International Emerging
Markets Free Latin America Index ("EMFLA").*
The Fund outperformed its EMFLA benchmark primarily as a result of good stock
selection in Mexico and our involvement in a Jamaican private placement.
In Mexico, our sector weightings relative to EMFLA and general preference for
well-known, large-capitalization names proved quite favorable. More
specifically, we held a sizable position in Wal-Mart de Mexico S.A. de C.V. (the
Fund's fifth-largest holding at June 30), which was strong; overweighted banks
like Grupo Financiero Banamex Accival, S.A. de C.V. (the Fund's sixth-largest
holding at June 30), which rose on the basis of a variety of factors;
underweighted Telefonos de Mexico, S.A. de C.V. (the Fund's largest holding at
June 30), which underperformed; and underweighted poor-performing sectors like
beverages, cement and industrial conglomerates.
As for Jamaica, we note that the Fund does not usually invest in Caribbean
markets due to their thin capitalization and other logistical difficulties. In
this case, we were able to take advantage of an attractive opportunity in the
form of a private partnership vehicle that, itself, owns shares in some of the
most prominent Jamaican stocks and offered a sufficiently compelling risk/reward
profile. The partnership enjoyed robust returns due to the Jamaican market's
vigorous rally during the period.
On the negative side, results in Venezuela detracted most from relative
performance. In particular, we significantly underweighted the Venezuelan market
based on our unfavorable view of the nation's prospects; unfortunately, we did
so at a time when one of the few liquid Venezuelan stocks, a major electric
utility, soared following the news that it was being taken over.
THE MARKETS: A TALE OF TWO QUARTERS
Activity in Latin American equity markets in the first half of 2000 followed a
pattern similar to that of most equity markets elsewhere. In other words,
substantial swings in investor sentiment drove Latin stocks up in the first
quarter, down considerably in April and May, and back up a bit in June.
The good news during the first quarter was a combination of strong regional
economic growth, higher commodity
===============================================================================
1
<PAGE>
LETTER TO SHAREHOLDERS
prices, notable progress on the inflation and interest-rate fronts, and a
healthy global appetite for equities in information-based "New Economy"
industries like technology, media and telecommunications (known collectively as
"TMT"). An additional plus was the upgrading of Mexico's sovereign debt rating
to investment-grade in March, which took place sooner than anticipated and
generated investor goodwill that helped Latin markets as a group.
The second quarter, by contrast, was much tougher, with NASDAQ's collapse in
April-May the defining event. In keeping with their recent strong correlation
with NASDAQ returns, Latin markets moved in virtual lockstep with NASDAQ during
the period. Previously buoyant TMT stocks--which are especially influential in
many Latin and emerging equity markets--were hit hard.
This was followed by a sharp rally in early June on the back of benign U.S.
inflationary data and signs that the U.S. economy was slowing. The rally was
short-lived, however, as global investors showed little interest in Latin
equities in the face of expected further hikes in U.S. interest rates later in
the year.
The following goes into greater detail about second-quarter developments in
Brazil and Mexico which, combined, currently account for the lion's share of the
Fund's assets:
- The macroeconomic scene in Brazil remained quite positive. For example:
inflation was well-behaved and should meet targets set by the International
Monetary Fund ("IMF"); fiscal prudence was such that the government is
expected to exceed or easily meet the IMF's fiscal targets as well; the
current-account deficit was no longer a matter of immediate concern; and the
foreign-exchange rate was stable. In addition, foreigners poured capital
into the country. This had the effect of strengthening both the real and
investor confidence which, in turn, smoothed the way for an unexpectedly
large interest-rate cut (I.E., a full percentage point) on June 20.
- Sentiment in Mexico was much less favorable, although macroeconomic
conditions were fairly strong. Uncertainty about the July 2 presidential
election--for which polls showed a virtual tie between the two leading
candidates--helped to push down the value of the peso versus the dollar in
June, prompting fears of higher inflation and tighter monetary policy.
Investors were also concerned about a slowdown in the U.S. economy (which
absorbs around 80% of Mexican exports) and leery of a possible decline in
oil prices, whose strength had been very supportive of the domestic economy
for over a year. Many market participants thought Mexico's market was
vulnerable to downside risk, and thus elected to shift assets to Brazil,
whose potential they felt was greater.
===============================================================================
2
<PAGE>
LETTER TO SHAREHOLDERS
PORTFOLIO STRUCTURE AND STRATEGY: CONTINUED FOCUS ON MEXICO AND BRAZIL
TOP 10 HOLDINGS, BY ISSUER *
<TABLE>
<CAPTION>
% OF
HOLDING COUNTRY NET ASSETS
------- ------- ----------
<S> <C> <C>
1. Telmex Mexico 9.8
2. Televisa Mexico 4.6
3. Tele Norte Leste Brazil 4.4
4. Carso Global Telecom Mexico 4.3
5. Wal-Mart de Mexico Mexico 4.1
6. Banamex Accival Mexico 4.1
7. Embratel Brazil 3.9
8. Grupo Modelo Mexico 3.9
9. CVRD Brazil 3.8
10. Petrobras Brazil 3.5
----
Total 46.4
====
</TABLE>
---------------
* Company names are abbreviations of
those found in the chart on page 7.
COUNTRY BREAKDOWN
(% of net assets)
<TABLE>
<S> <C>
Argentina 2.54
Brazil 36.23
Chile 9.94
Cash & Other Assets 0.22
Mexico 43.82
Other* 7.25
</TABLE>
---------------
* Other includes Colombia, Global,
Jamaica, Latin America, Peru, U.S.
and Venezuela.
The following is a summary of our current approach to the Fund's portfolio:
COUNTRY SELECTION. We continue to focus on Mexico and Brazil. Mexican stocks
rallied immediately following the outcome of the presidential election,
reflecting investor optimism going forward into a new political era. More
recently, however, they have sold off in recognition of the challenges involved
as the new administration begins to assume power. In Brazil, we see a realistic
possibility of further interest-rate cuts, bolstered by improving fundamentals
and vibrant foreign direct investment. These and other factors are quite bullish
for Brazilian equities later in the year.
The corollary to our emphasis on Mexico and Brazil is that we are maintaining
only minimal exposure to Argentina, given its lack of real progress on pressing
economic issues, as well as smaller markets such as Venezuela and Peru, where
lack of liquidity is a limiting factor.
STOCK SELECTION. Our emphasis remains on large, liquid, blue-chip companies with
strong managements and clean balance sheets. By contrast, we are avoiding more
speculative turnaround stories, takeover targets or less-liquid names generally.
SECTOR WEIGHTINGS. Relative to the EMFLA benchmark, we are overweighting the
telecommunications sector, if less aggressively than previously; underweighting
electric utilities, if not so much as before; and keeping a
neutral-to-overweight exposure to financial services, particularly banks. Latin
American banks in general are extremely liquid and very healthy, which sharply
contrasts with banks in the U.S. and Asia.
===============================================================================
3
<PAGE>
LETTER TO SHAREHOLDERS
OUTLOOK: CAUTIOUS IN THE NEAR TERM, MORE OPTIMISTIC FURTHER AHEAD
Our overall view on Latin equities is cautious in the near term and more
optimistic over the next six-12 months. We continue to believe that the region's
markets will lack a firm trend until the U.S. macroeconomic picture becomes
clearer and global risk aversion wanes. With regard to the former, we expect the
Federal Reserve to maneuver the robust U.S. economy into a desirable "soft
landing" that should prove notably beneficial to Latin markets like Brazil and
Mexico.
Looking further ahead, we believe that Latin markets offer investors a
compelling blend of strong fundamentals and valuations that are increasingly
attractive, both on an absolute basis and relative to those in developed
markets. Corporate earnings remain robust (I.E., in the double digits),
suggesting that many companies are transitioning well into a newly competitive
global marketplace. For these and other reasons, we are inclined to keep the
Fund fully invested.
There are risks, to be sure. One is that the Fed goes too far in raising
interest rates, thereby initiating an abrupt "hard landing" for the U.S. economy
and, by extension, those of its Latin neighbors. Another is that U.S.
corporations fail to deliver expected earnings growth, thereby setting off
another round of stock-market volatility throughout the world.
All in all, we like what we see and look forward to the prospect of further
appreciation.
On an administrative note, we are pleased to announce that, subject to
shareholder approval, the Fund intends to merge its assets with those of its
sister fund, The Latin America Investment Fund, Inc. ("LAM"). For tax purposes,
the Fund will merge into LAM and LAM will subsequently change its name to that
of the Fund and formally adopt the Fund's investment objective and policies. We
are hopeful that the shareholders both of the Fund and LAM will approve the
transaction at their respective meetings to be held in early October.
We additionally note in this context that the Fund's investment adviser, Credit
Suisse Asset Management, LLC ("CSAM"), has agreed effective July 1, 2000 to
calculate its management fee based on the market value of the Fund's shares
instead of its total net asset value. This is intended as a measure to help
reduce the discount to NAV at which the Fund's shares currently trade, and
indicates CSAM's commitment to better align its own interests with those of the
Fund's shareholders.
/s/ Emily Alejos
Respectfully,
Emily Alejos
Chief Investment Officer **
===============================================================================
4
<PAGE>
LETTER TO SHAREHOLDERS
FROM CREDIT SUISSE ASSET MANAGEMENT, LLC:
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 also provides for
additional share repurchases. The Program is described on pages 25 through 27 of
this report.
--------------------------------------------------------------------------------
* The Morgan Stanley Capital International Emerging Markets Free Latin America
Index is an unmanaged index (with no defined investment objective) of Latin
American equities that includes reinvestment of dividends, and is the exclusive
property of Morgan Stanley Capital International Inc.
** Emily Alejos, who is a Director of Credit Suisse Asset Management, LLC
("CSAM"), is primarily responsible for management of the Fund's assets. She has
served the Fund in such capacity since November 9, 1999. Ms. Alejos joined CSAM
in 1997 from Bankers Trust, where she was an emerging markets portfolio manager.
Previously, she focused on Latin American equities at G.T. Capital Management in
San Francisco. Ms. Alejos is Chief Investment Officer of the Fund. She is also
Chief Investment Officer of The Brazilian Equity Fund, Inc. and The Latin
America Investment Fund, Inc. and Investment Officer of The Chile Fund, Inc.,
The Emerging Markets Telecommunications Fund, Inc. and The Emerging Markets
Infrastructure Fund, Inc.
===============================================================================
5
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
PORTFOLIO SUMMARY - AS OF JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
GEOGRAPHIC ASSET BREAKDOWN
[CHART]
AS A PERCENT OF NET ASSETS
<TABLE>
<CAPTION>
June 30, 2000 December 31, 1999
<S> <C> <C>
Argentina 2.54% 4.17%
Brazil 36.23% 35.60%
Chile 9.94% 8.55%
Colombia 0.00% 0.97%
Jamaica 2.22% 0.99%
Latin America 0.36% 0.16%
Mexico 43.82% 44.62%
Peru 1.30% 1.73%
United States 0.46% 0.00%
Venezuela 1.84% 0.32%
Global 1.07% 0.64%
Cash & Cash Equivalents 0.22% 2.25%
</TABLE>
SECTOR ALLOCATION
[CHART]
AS A PERCENT OF NET ASSETS
<TABLE>
<CAPTION>
June 30, 2000 December 31, 1999
<S> <C> <C>
Banking 5.32% 5.17%
Broadcast, Radio & Television 4.62% 3.67%
Cellular Telecommunications 7.93% 3.63%
Cement 2.25% 3.85%
Diversified Operations 1.26% 2.16%
Electric Distribution 2.16% 1.35%
Financial Services 5.97% 4.67%
Food & Beverages 10.87% 13.48%
Investment & Holding Companies 8.69% 5.87%
Local and/or Long Distance Telephone Service 13.36% 15.29%
Mining 6.29% 5.13%
Oil & Natural Gas 3.45% 5.31%
Paper Products 1.95% 4.32%
Retail 4.31% 3.80%
Steel 3.30% 2.90%
Telecommunications 13.72% 10.97%
Fixed or Floating Rate Investments 0.00% 0.16%
Other 4.33% 5.99%
Cash & Cash Equivalents 0.22% 2.28%
</TABLE>
================================================================================
6
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
PORTFOLIO SUMMARY - AS OF JUNE 30, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
TOP 10 HOLDINGS, BY ISSUER
<TABLE>
<CAPTION>
Percent of
Holding Sector Country Net Assets
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Telefonos de Mexico, S.A. de C.V. Telecommunications Mexico 9.8
-------------------------------------------------------------------------------------------------------------------------
2. Grupo Televisa S.A. Broadcast, Radio & Television Mexico 4.6
-------------------------------------------------------------------------------------------------------------------------
3. Tele Norte Leste Participacoes S.A. Local and/or Long Distance
Telephone Service Brazil 4.4
-------------------------------------------------------------------------------------------------------------------------
4. Carso Global Telecom Investment & Holding Companies Mexico 4.3
-------------------------------------------------------------------------------------------------------------------------
5. Wal-Mart de Mexico S.A. de C.V. Retail Mexico 4.1
-------------------------------------------------------------------------------------------------------------------------
6. Grupo Financiero Banamex Accival, S.A. de C.V. Financial Services Mexico 4.1
-------------------------------------------------------------------------------------------------------------------------
7. Embratel Participacoes S.A. Local and/or Long Distance
Telephone Service Brazil 3.9
-------------------------------------------------------------------------------------------------------------------------
8. Grupo Modelo, S.A. de C.V. Food & Beverages Mexico 3.9
-------------------------------------------------------------------------------------------------------------------------
9. Companhia Vale do Rio Doce Mining Brazil 3.8
-------------------------------------------------------------------------------------------------------------------------
10. Petroleo Brasileiro S.A. Oil & Natural Gas Brazil 3.5
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
7
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS - JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares/Units (Note A)
--------------------------------------------------------------------------------------
<S> <C> <C>
EQUITY OR EQUITY-LINKED SECURITIES-99.78%
ARGENTINA-2.54%
BANKING-0.10%
Banco de Galicia y Buenos Aires
S.A., de C.V., Class B ADR 7,400 $ 109,612
-----------
LOCAL AND/OR LONG DISTANCE
TELEPHONE SERVICE-1.81%
Telecom Argentina Stet -
France Telecom S.A. ADR 70,700 1,944,250
-----------
TELECOMMUNICATIONS-0.63%
IMPSAT Fiber Networks Inc. 40,000 670,000
-----------
TOTAL ARGENTINA (Cost $2,843,744) 2,723,862
-----------
BRAZIL-36.23%
BANKING-4.47%
Banco Bradesco S.A. PN 143,787,752 1,251,715
Banco do Brasil S.A.,
Series A, Warrants
(expiring 06/30/01)+ 11,076,400 3,808
Banco do Brasil S.A.,
Series B, Warrants
(expiring 06/30/06)+ 16,614,600 11,055
Banco do Brasil S.A.,
Series C, Warrants
(expiring 06/30/11)+ 27,691,000 20,881
Banco Itau S.A. PN 25,046,753 2,201,226
Uniao de Bancos Brasileiros
S.A. GDR 45,900 1,319,625
-----------
4,808,310
-----------
CELLULAR TELECOMMUNICATIONS-5.33%
Celular CRT Participacoes
S.A., PNA+ 4,270,000 1,870,419
Telemig Celular Participacoes
S.A. ADR 19,000 1,358,500
Telemig Celular S.A. PNC+ 144,037 3,674
Telesp Celular Participacoes
S.A. ADR 55,500 2,490,562
-----------
5,723,155
-----------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Description Shares/Units (Note A)
--------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRIC DISTRIBUTION-2.16%
Eletropaulo Metropolitana
S.A. PN 32,940,999 $ 2,319,660
-----------
FERTILIZER-0.03%
Serrana S.A. ON 27,210 15,540
Serrana S.A. ON
Rights (expiring 12/25/50)+ 20,731 0
Serrana S.A. PN 32,445 17,091
Serrana S.A. PN Rights
(expiring 12/25/50)+ 24,720 0
-----------
32,631
-----------
FOOD & BEVERAGES-2.91%
Companhia Brasileira de
Distribuicao Grupo Pao
de Acucar ADR 65,580 2,106,757
Companhia Cervejaria
Brahma PN 1,128,611 957,458
Seara Alimentos S.A. 160,771,340 66,858
-----------
3,131,073
-----------
LOCAL AND/OR LONG DISTANCE TELEPHONE SERVICE-10.12%
Embratel Participacoes
S.A. ADR 179,300 4,235,962
Tele Centro Sul Participacoes
S.A. ADR 26,040 1,902,547
Tele Norte Leste Participacoes
S.A. ADR 200,051 4,726,205
Telecomunicacoes Brasileiras
S.A. PN 43,464,259 964
Telecomunicacoes de
Minas Gerais S.A. PNB 144,037 5,271
Telecomunicacoes de
Sao Paulo S.A. 435 5
-----------
10,870,954
-----------
MINING-3.81%
Companhia Vale do
Rio Doce PNA+ 145,101 4,095,171
-----------
</TABLE>
================================================================================
8
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
--------------------------------------------------------------------------------------
<S> <C> <C>
OIL & NATURAL GAS-3.46%
Petroleo Brasileiro S.A. ADR 129,900 $ 3,712,282
------------
PAPER PRODUCTS-1.95%
Aracruz Celulose S.A. ADR 32,100 619,931
Votorantim Celulose e Papel
S.A. ADR 80,200 1,473,675
------------
2,093,606
------------
STEEL-1.99%
Gerdau S.A. PN 175,548,076 2,141,424
------------
TOTAL BRAZIL (Cost $32,394,582) 38,928,266
------------
CHILE-9.94%
BANKING-0.73%
Banco de Credito e Inversiones 121,029 785,897
------------
ELECTRIC GENERATION-1.17%
Empresa Nacional de
Electricidad S.A.+ 281,002 103,515
Empresa Nacional de
Electricidad S.A. ADR 32,000 354,000
Enersis S.A.+ 1,222,321 491,106
Gener S.A. 1,440,000 307,321
------------
1,255,942
------------
ENGINEERING & CONSTRUCTION-0.22%
Besalco S.A. 64,421 141,072
Maderas y Sinteticos S.A. 256,850 100,099
------------
241,171
------------
FERTILIZER-0.40%
Sociedad Quimica y Minera de
Chile S.A. 213 4,899
Sociedad Quimica y Minera de
Chile S.A. ADR 6,700 149,075
Sociedad Quimica y Minera de
Chile S.A., Class A 81,321 195,436
Sociedad Quimica y Minera de
Chile S.A., Class B 35,000 77,944
------------
427,354
------------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
--------------------------------------------------------------------------------------
<S> <C> <C>
FOOD & BEVERAGES-2.02%
Compania Cervecerias
Unidas S.A. 69,567 $ 312,429
Compania Cervecerias Unidas
S.A. ADR 16,700 378,881
Distribucion y Servicio D&S
S.A. ADR 41,100 714,112
Embotelladora Andina
S.A. ADR 40,200 384,412
Embotelladora Andina
S.A. PNA 174,674 363,060
Embotelladora Andina
S.A. PNB 10,923 18,345
------------
2,171,239
------------
FORESTRY-1.72%
Compania de Petroleos de
Chile S.A. 277,815 1,175,500
Empresas CMPC S.A. 59,359 671,968
------------
1,847,468
------------
INSURANCE-0.12%
Compania de Seguros
La Prevision Vida S.A. 217,878 133,432
------------
PHARMACEUTICALS-0.11%
Laboratorio Chile S.A. 122,018 117,206
------------
REAL ESTATE INVESTMENT & MANAGEMENT-0.09%
Parque Arauco S.A. 200,000 102,069
------------
RETAIL-0.18%
Sociedad Anonima Comercial e
Industrial Falabella 198,223 189,449
------------
STEEL-0.29%
Compania Acero
del Pacifico S.A. 155,931 309,634
------------
</TABLE>
================================================================================
9
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
No. of Value
Description Shares/Units (Note A)
--------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS-2.89%
Compania de Telecomunicaciones
de Chile S.A. ADR 108,900 $ 1,973,813
Compania de Telecomunicaciones
de Chile S.A., Class A 79,573 363,273
Empresa Nacional de
Telecomunicaciones S.A. 86,142 767,341
------------
3,104,427
------------
TOTAL CHILE (Cost $10,202,051) 10,685,288
------------
COLOMBIA-0.00%
CEMENT-0.00%
Cementos Paz del Rio S.A. ADR++
(Cost $337) 31 176
------------
JAMAICA-2.22%
INVESTMENT & HOLDING COMPANIES-2.22%
Jamaican Assets I L.P. @+
(Cost $1,041,186) 939,513 2,388,854
------------
LATIN AMERICA-0.36%
DIVERSIFIED OPERATIONS-0.36%
J.P. Morgan Latin America
Capital Partners, L.P.+*# 382,426 382,426
------------
TELECOMMUNICATIONS-0.0%
International Wireless
Communications
Holdings, Corp.*+ 6,318 0
------------
TOTAL LATIN AMERICA
(Cost $355,753) 382,426
------------
MEXICO-43.82%
BROADCAST, RADIO & TELEVISION-4.62%
Grupo Televisa S.A. GDR+ 72,000 4,963,500
------------
CELLULAR TELECOMMUNICATIONS-2.60%
Grupo Iusacell S.A. de C.V.,
Series V ADR 178,834 2,794,281
------------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
--------------------------------------------------------------------------------------
<S> <C> <C>
CEMENT-2.25%
Cemex, S.A. de C.V. ADR 103,402 $ 2,417,022
------------
DIVERSIFIED OPERATIONS-0.91%
Alfa, S.A., Series A 426,684 975,352
------------
FINANCIAL SERVICES-5.97%
Grupo Financiero Banamex Accival,
S.A. de C.V., Series O+ 1,034,153 4,349,683
Grupo Financiero Bancomer,
S.A. de C.V., Series O+ 2,438,887 1,238,894
Grupo Financiero Inbursa,
S.A. de C.V., Series O+ 247,367 830,588
------------
6,419,165
------------
FOOD & BEVERAGES-5.94%
Fomento Economico Mexicano,
S.A. de C.V. ADR 51,570 2,220,733
Grupo Modelo, S.A. de C.V.,
Series C 1,793,285 4,163,016
------------
6,383,749
------------
INVESTMENT & HOLDING COMPANIES-5.39%
Carso Global Telecom,
Class A-1+ 1,626,393 4,643,060
Grupo Carso S.A. de C.V.,
Series A1+ 324,900 1,151,987
------------
5,795,047
------------
MINING-1.18%
Grupo Mexico S.A., Series B 451,892 1,271,707
------------
RETAIL-4.14%
Wal-Mart de Mexico S.A. de
C.V. ADR+ 189,300 4,442,492
------------
STEEL-1.02%
Tubos de Acero de Mexico,
S.A. ADR 79,000 1,096,125
------------
</TABLE>
================================================================================
10
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
No. of Value
Description Shares/Units (Note A)
--------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS-9.80%
Telefonos de Mexico, S.A.
de C.V., Class L ADR 184,400 $ 10,533,850
------------
TOTAL MEXICO
(Cost $42,408,489) 47,092,290
------------
PERU-1.30%
ENGINEERING & CONSTRUCTION-0.00%
Tecsur S.A.+ 78,486 5,176
------------
MINING-1.30%
Compania de Minas Buenaventura
S.A. ADR, Class B 80,600 1,395,388
------------
TOTAL PERU
(Cost $1,310,293) 1,400,564
------------
UNITED STATES-0.46%
INTERNET SERVICES-0.46%
StarMedia Network, Inc.+
(Cost $497,429) 26,100 492,638
------------
VENEZUELA-1.84%
LOCAL AND/OR LONG DISTANCE TELEPHONE SERVICE-1.43%
Compania Anonima Nacional
Telefonos de Venezuela ADR 56,694 1,541,368
------------
TELECOMMUNICATIONS-0.41%
Venworld
Telecommunications@+ 40,161 436,240
------------
TOTAL VENEZUELA
(Cost $2,352,029) 1,977,608
------------
GLOBAL-1.07%
INVESTMENT & HOLDING COMPANIES-1.07%
Emerging Markets Ventures I,
L.P.@+# (Cost $833,631) 803,343 1,149,126
------------
TOTAL EQUITY OR EQUITY-LINKED
SECURITIES (Cost $94,239,524) 107,221,098
------------
</TABLE>
<TABLE>
<CAPTION>
Par Value
Description (000) (Note A)
--------------------------------------------------------------------------------------
<S> <C> <C>
FLOATING RATE INVESTMENTS-0.00%
ARGENTINA-0.00%
Republic of Argentina, Bocon
Pre 2, 6.61%, 04/01/01(a)
(Cost $145) USD 0 $ 144
------------
TOTAL INVESTMENTS-99.78%
(Cost $94,239,669) (Notes A,D) 107,221,242
CASH AND OTHER ASSETS IN
EXCESS OF LIABILITIES-0.22% 238,951
------------
NET ASSETS-100.00% $107,460,193
============
</TABLE>
* Not readily marketable security.
@ Restricted security, not readily marketable (See Note F).
+ Security is non-income producing.
++ SEC Rule 144A security. Such securities are traded only among "qualified
institutional buyers."
# As of June 30, 2000, the Fund committed to investing an additional $412,822
and $3,281,833 of capital in Emerging Markets Ventures I, L.P. and J.P.
Morgan Latin America Capital Partners, L.P., respectively.
(a) Floating rate bond; rate resets based on 1 month U.S. dollar London
Interbank Offered Rate (LIBOR). Pro-rata sinking fund has been established.
ADR American Depositary Receipts.
GDR Global Depositary Receipts.
ON Ordinary Shares.
PN Preferred Shares.
PNA Preferred Shares, Class A.
PNB Preferred Shares, Class B.
PNC Preferred Shares, Class C.
USD United States Dollars.
================================================================================
See accompanying notes to financial statements. 11
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at value (Cost $94,239,669) (Note A) ............................................................... $107,221,242
Receivables:
Investments sold .............................................................................................. 586,567
Dividends ..................................................................................................... 314,599
Prepaid expenses ................................................................................................ 8,256
------------
Total Assets .................................................................................................... 108,130,664
------------
LIABILITIES
Due to custodian ................................................................................................ 59,155
Payables:
Investment advisory fee (Note B) .............................................................................. 305,093
Investments purchased ......................................................................................... 64,081
Administration fees (Note B) .................................................................................. 33,251
Other accrued expenses ........................................................................................ 208,891
------------
Total Liabilities ............................................................................................... 670,471
------------
NET ASSETS (applicable to 6,131,428 shares of common stock outstanding) (Note C) ................................ $107,460,193
============
NET ASSET VALUE PER SHARE ($107,460,193/6,131,428) .............................................................. $17.53
============
NET ASSETS CONSIST OF
Capital stock, $0.001 par value; 6,131,428 shares issued and outstanding
(100,000,000 shares authorized) ............................................................................... $ 6,131
Paid-in capital ................................................................................................. 107,048,763
Accumulated net investment loss ................................................................................. (240,291)
Accumulated net realized loss on investments and foreign currency related transactions .......................... (12,336,017)
Net unrealized appreciation in value of investments and translation of other
assets and liabilities denominated in foreign currencies ...................................................... 12,981,607
------------
Net assets applicable to shares outstanding ..................................................................... $107,460,193
============
</TABLE>
================================================================================
12 See accompanying notes to financial statements
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Income (Note A):
Dividends ..................................................................................................... $ 843,695
Interest ...................................................................................................... 336,450
Less: Foreign taxes withheld .................................................................................. (51,602)
------------
Total Investment Income ....................................................................................... 1,128,543
------------
Expenses:
Investment advisory fees (Note B) ............................................................................. 713,174
Consulting fees (Note H) ...................................................................................... 140,461
Audit and legal fees .......................................................................................... 103,523
Administration fees (Note B) .................................................................................. 103,050
Custodian fees ................................................................................................ 78,800
Printing ...................................................................................................... 68,530
Accounting fees ............................................................................................... 39,632
Directors' fees ............................................................................................... 20,930
Transfer agent fees ........................................................................................... 13,660
NYSE listing fees ............................................................................................. 8,063
Insurance ..................................................................................................... 4,584
Other ......................................................................................................... 39,467
Brazilian taxes (Note A) ...................................................................................... 78,108
------------
Total Expenses ................................................................................................ 1,411,982
Less: Fee waivers ............................................................................................. (43,148)
------------
Net Expenses ................................................................................................ 1,368,834
------------
Net Investment Loss .......................................................................................... (240,291)
------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS AND FOREIGN CURRENCY
RELATED TRANSACTIONS
Net realized gain from:
Investments ................................................................................................... 15,311,788
Foreign currency related transactions ......................................................................... 10,444
Net change in unrealized appreciation in value of investments and translation
of other assets and liabilities denominated in foreign currencies ............................................. (17,435,219)
------------
Net realized and unrealized loss on investments and foreign currency related transactions ....................... (2,112,987)
------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................................................ $ (2,353,278)
============
</TABLE>
================================================================================
See accompanying notes to financial statements 13
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
June 30, 2000 December 31,
(unaudited) 1999
----------------------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
Operations:
Net investment income/(loss) ........................................... $ (240,291) $ 426,810
Net realized gain on investments and foreign currency related
transactions .......................................................... 15,322,232 1,497,554
Net change in unrealized appreciation/(depreciation) in value of
investments and translation of other assets and liabilities denominated
in foreign currencies ................................................. (17,435,219) 46,392,673
------------ ------------
Net increase/(decrease) in net assets resulting from operations ...... (2,353,278) 48,317,037
------------ ------------
Capital share transactions:
Cost of 1,104,000 shares and 1,378,200 shares repurchased,
respectively (Note G) ................................................. (13,448,170) (11,731,377)
------------ ------------
Total increase/(decrease) in net assets .............................. (15,801,448) 36,585,660
------------ ------------
NET ASSETS
Beginning of period ...................................................... 123,261,641 86,675,981
------------ ------------
End of period ............................................................ $107,460,193 $123,261,641
============ ============
</TABLE>
================================================================================
14 See accompanying notes to financial statements
<PAGE>
This page intentionally left blank.
==============================================================================
15
<PAGE>
------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY 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 For the Years Ended December 31,
June 30, 2000 --------------------------------
(unaudited) 1999 1998
------------- ------------- -------------
PER SHARE OPERATING PERFORMANCE
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period.......................................... $17.04 $10.06 $17.22
------------- ------------- -------------
Net investment income/(loss).................................................. (0.04)+ 0.06+ 0.15
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions....................................... (0.08) 6.49 (7.20)++
------------- ------------- -------------
Net increase/(decrease) in net assets resulting from operations............... (0.12) 6.55 (7.05)
------------- ------------- -------------
Dividends and distributions to shareholders:
Net investment income......................................................... -- -- (0.11)
Net realized gain on investments and foreign currency related transactions.... -- -- --
In excess of net realized gains............................................... -- -- --
------------- ------------- -------------
Total dividends and distributions to shareholders............................. -- -- (0.11)
------------- ------------- -------------
Anti-dilutive impact due to capital shares repurchased........................ 0.61 0.43 --
Effect of reduction of accrued offering costs................................. -- -- --
Dilutive impact due to capital share rights offering.......................... -- -- --
------------- ------------- -------------
Net asset value, end of period................................................ $17.53 $17.04 $10.06
------------- ------------- -------------
------------- ------------- -------------
Market value, end of period................................................... $13.000 $12.625 $7.188
------------- ------------- -------------
------------- ------------- -------------
Total investment return(a).................................................... 2.97% 75.65% (46.63)%
------------- ------------- -------------
------------- ------------- -------------
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted)....................................... $107,460 $123,262 $86,676
Ratio of expenses to average net assets (b)................................... 2.40%(c) 2.14% 2.41%
Ratio of expenses to average net assets, excluding fee waivers................ 2.47%(c) 2.22% 2.60%
Ratio of expenses to average net assets, excluding taxes...................... 2.26%(c) 2.05% 1.77%
Ratio of net investment income/(loss) to average net assets................... (0.42)%(c) 0.46% 1.12%
Portfolio turnover rate....................................................... 69.25% 161.71% 142.35%
--------------------------------------------------------------------------------------------------------------------------------
* 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 $0.10 per share.
+ Based on average shares outstanding.
++ Includes a $0.01 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.
(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) Ratios reflect actual expenses incurred by the Fund. Amounts are net of fee
waivers and inclusive of taxes.
(c) Annualized.
</TABLE>
==============================================================================
16 See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
For the Years Ended December 31,
------------------------------------------------
1997 1996 1995 1994
---- ---- ---- ----
PER SHARE OPERATING PERFORMANCE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.......................................... $16.89 $14.93 $17.92 $22.50
------- ------- ------- -----
Net investment income/(loss).................................................. 0.15 0.19 0.06 0.01+
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions....................................... 1.84 1.83 (2.81) 0.96
------- ------- ------- -----
Net increase/(decrease) in net assets resulting from operations............... 1.99 2.02 (2.75) 0.97
------- ------- ------- -----
Dividends and distributions to shareholders:
Net investment income......................................................... (0.16) (0.06) -- (0.17)
Net realized gain on investments and foreign currency related transactions.... (1.50) -- (0.24) (3.10)
In excess of net realized gains............................................... -- -- -- --
------- ------- ------- -----
Total dividends and distributions to shareholders............................. (1.66) (0.06) (0.24) (3.27)
------- ------- ------- -----
Anti-dilutive impact due to capital shares repurchased........................ -- -- -- --
Effect of reduction of accrued offering costs................................. -- -- -- --
Dilutive impact due to capital share rights offering.......................... -- -- -- (2.28)
------- ------- ------- -----
Net asset value, end of period................................................ $17.22 $16.89 $14.93 $17.92
------- ------- ------- -----
------- ------- ------- -----
Market value, end of period................................................... $13.688 $14.000 $12.875 $17.625
------- ------- ------- -----
------- ------- ------- -----
Total investment return(a).................................................... 10.29% 9.18% (25.65)% (17.78)%
------- ------- ------- -----
------- ------- ------- -----
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted)....................................... $148,130 $145,230 $128,377 $153,128
Ratio of expenses to average net assets (b)................................... 1.89% 1.69% 2.04% 1.94%
Ratio of expenses to average net assets, excluding fee waivers................ 2.02% 1.80% 2.15% --
Ratio of expenses to average net assets, excluding taxes...................... 1.65% -- 1.81% 1.70%
Ratio of net investment income/(loss) to average net assets................... 0.77% 1.16% 0.42% 0.04%
Portfolio turnover rate....................................................... 111.83% 43.22% 27.05% 68.46%
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
For the Period
For the Years Ended December 31, October 30, 1991*
-------------------------------- through
1993 1992 December 31, 1991
---- ---- -----------------
PER SHARE OPERATING PERFORMANCE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period.......................................... $14.37 $15.44 $13.85**
------- ------- -------
Net investment income/(loss).................................................. 0.11+ 0.21 0.06
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions....................................... 8.75 0.43 1.60
------- ------- -------
Net increase/(decrease) in net assets resulting from operations............... 8.86 0.64 1.66
------- ------- -------
Dividends and distributions to shareholders:
Net investment income......................................................... -- (0.21) (0.06)
Net realized gain on investments and foreign currency related transactions.... (0.75) (1.32) (0.01)
In excess of net realized gains............................................... -- (0.18) --
------- ------- -------
Total dividends and distributions to shareholders............................. (0.75) (1.71) (0.07)
Anti-dilutive impact due to capital shares repurchased........................ -- -- --
Effect of reduction of accrued offering costs................................. 0.02 -- --
Dilutive impact due to capital share rights offering.......................... -- -- --
------- ------- -------
Net asset value, end of period................................................ $22.50 $14.37 $15.44
------- ------- -------
------- ------- -------
Market value, end of period................................................... $25.625 $14.000 $13.500
------- ------- -------
------- ------- -------
Total investment return(a).................................................... 89.35% 16.49% (2.73)%
------- ------- -------
------- ------- -------
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) omitted)...................................... $135,573 $86,359 $92,751
Ratio of expenses to average net assets (b)................................... 2.00% 2.20% 2.35%(c)
Ratio of expenses to average net assets, excluding fee waivers................ -- -- --
Ratio of expenses to average net assets, excluding taxes...................... -- -- --
Ratio of net investment income/(loss) to average net assets................... 0.63% 1.27% 2.46%(c)
Portfolio turnover rate....................................................... 49.48% 68.70% 11.58%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
==============================================================================
17
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTE A. SIGNIFICANT ACCOUNTING POLICIES
The Latin America Equity Fund, Inc. (the "Fund") was incorporated in Maryland on
September 16, 1991 and commenced investment operations on October 30, 1991. 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
accounting principles generally accepted in the United States 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 equity securities shall be valued at the closing price
on the exchange or market on which the security is primarily traded ("Primary
Market"). If the security did not trade on the Primary Market, it shall be
valued at the closing price on another exchange where it trades. If there are no
such sale prices, the value shall be the most recent bid, and if there is no
bid, the security shall be valued at the most recent bid. If no pricing service
is available and there are more than two dealers, the value shall be the mean of
the highest bid and lowest ask. If there is only one dealer, then the value
shall be the mean if bid and ask are available, otherwise the value shall be the
bid. 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, 2000, the Fund held 4.05% of its net
assets in securities valued in good faith by the Board of Directors with an
aggregate cost of $3,051,065 and fair value of $4,356,646. 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, 2000, the interest
rate was 6.00% 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, 1999, the Fund had a capital loss carryforward of $26,333,554,
of which $22,030,617 expires in 2006 and $4,302,937 expires in 2007.
Income received by the Fund from sources within Latin America may be subject to
withholding and other taxes imposed by such countries. Also, certain Latin
American countries impose taxes on funds remitted or repatriated from such
countries.
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, 2000, the Fund did not incur 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
================================================================================
18
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
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 dropped to 0.30% for the
remaining two years. For the six months ended June 30, 2000, the Fund
incurred $78,108 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 gains 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 date 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 short-term
capital losses, including capital loss carryforwards, if any. 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.
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.
================================================================================
19
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
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 exchange 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 10% 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 Fund's custodian and
pursuant to the terms of the repurchase agreement, the collateral must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If 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 may claim any resulting loss against the seller; collectibility
of such claims may be limited. As of June 30, 2000, the Fund had no such
agreements.
NOTE B. AGREEMENTS
Credit Suisse Asset Management, LLC ("CSAM"), serves as the Fund's investment
adviser, with respect to all investments. As compensation for its advisory
services, CSAM receives from the Fund an annual fee, calculated weekly and paid
quarterly, equal to 1.25% of the first $100 million of the Fund's average weekly
net assets, 1.15% of the next $50 million of the Fund's average weekly net
assets and 1.05% of the Fund's average weekly net assets in excess of $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,
2000, CSAM earned $713,174 for advisory services, of which CSAM waived $43,148.
CSAM also provides certain administrative services to
================================================================================
20
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
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, 2000, CSAM was
reimbursed $14,006 for administrative services rendered to the Fund.
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, computed weekly
and paid quarterly at an annual rate of 0.25% of the Fund's average weekly net
assets invested in Chile. For the six months ended June 30, 2000, Celfin earned
$9,390 for sub-advisory services.
Bear Stearns Funds Management Inc. ("BSFM") serves as the Fund's U.S.
administrator. The Fund pays BSFM a monthly fee for its services rendered 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, 2000, BSFM earned $56,004 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 $56,000 at June 30, 2000) 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 $6,000 at June 30, 2000). For the six months June 30, 2000,
Celfin earned $33,040 and $2,140 for administration 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 6,131,428 shares outstanding at June 30, 2000, CSAM
owned 7,169 shares.
NOTE D. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the cost of securities owned at June 30,
2000 was $94,892,747. Accordingly, the net unrealized appreciation of
investments (including investments denominated in foreign currencies) of
$12,328,495 was composed of gross appreciation of $15,738,305 for those
investments having an excess of value over cost and gross depreciation of
$3,409,810 for those investments having an excess of cost over value.
For the six months ended June 30, 2000, purchases and sales of securities, other
than short-term investments, were $79,658,862 and $90,575,321, respectively.
NOTE E. CREDIT FACILITY
The Fund, together with other funds advised by CSAM established a $350 million
committed, unsecured, line of credit facility ("Credit Facility") with Deutsche
Bank AG as administrative agent, State Street Bank and Trust Company as
operations agent, Bank of Nova Scotia as syndication agent as well as certain
other lenders, for temporary or emergency purposes. Under the terms of the
Credit Facility, the funds with access to the Credit Facility pay an aggregate
commitment fee at a rate of 0.075% per annum on the average daily balance of the
Credit Facility that is undisbursed and uncanceled during the preceding quarter
allocated among the participating funds in such manner as is determined by the
governing Boards of the various funds. In addition, the participating funds will
pay interest on borrowing at the Federal Funds rate plus 0.50%. At June 30, 2000
and during the six months ended June 30, 2000, the Fund had no borrowings under
the Credit Facility.
================================================================================
21
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
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 units/shares held, the acquisition dates, aggregate
cost, fair value as of June 30, 2000, value per unit/share of such securities
and percent of net assets which the securities comprise.
<TABLE>
<CAPTION>
FAIR VALUE AT VALUE PERCENT
NUMBER OF ACQUISITION JUNE 30, PER OF NET
SECURITY UNITS/SHARES DATES COST 2000 UNIT/SHARE ASSETS
-------- ------------ ----------------- ---------- ------------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets Ventures I , L.P. .... 711,734 01/22/98-12/21/99 $ 742,023 $1,018,086 $ 1.43 0.95
91,609 03/24/00 91,608 131,040 0.12
------------ ---------- ------------- ---------- -------
803,343 833,631 1,149,126 1.07
------------ ---------- ------------- ---------- -------
Jamaican Assets I L.P. ................ 939,513 07/29/97-10/20/97 1,041,186 2,388,854 2.54 2.22
------------ ---------- ------------- ---------- -------
Venworld Telecommunications ........... 40,161 07/30/92-08/07/92 817,105 436,240 10.86 0.41
------------ ---------- ------------- ---------- -------
</TABLE>
The Fund may incur certain costs in connection with the disposition of the above
securities.
NOTE G. SHARE REPURCHASE PROGRAM
On October 21, 1998, the Fund's Board of Directors 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 had 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 were
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 is subject to review by the Board of Directors of the Fund.
By July, 1999, the Fund had repurchased the full amount so authorized (1,300,000
shares). On October 14, 1999, the Fund's Board of Directors authorized the
repurchase by the Fund of up to an additional 15% of the Fund's outstanding
common shares, for the purpose of further enhancing shareholder value. For the
year ended December 31, 1999, the Fund repurchased 1,378,200 of its shares for a
total cost of $11,731,377 at a weighted average discount of 23.16% from net
asset value. The discount of individual repurchases ranged from 16.83% - 27.28%.
For the six months ended June 30, 2000, the Fund repurchased 1,104,000 of its
shares for a total cost of $13,448,170 at a weighted average discount of 24.29%
from net asset value. The discount of individual repurchases ranged from 20.26%
- 28.48%.
================================================================================
22
<PAGE>
--------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
NOTE H. SUBSEQUENT EVENTS
--------------------------------------------------------------------------------
The Fund engaged an Investment Banking Firm during the year to look at various
strategic options for the Fund. As a result of such engagement, on July 24,
2000, the Fund's Board of Directors approved the merger (the "Merger") of the
Fund with and into The Latin America Investment Fund, Inc. ("LAM"). As a result
of the Merger, the Fund will cease to exist, LAM will be the surviving legal
corporation and each share of common stock of the Fund will be converted into an
equivalent dollar amount of full shares of common stock of LAM, based on the net
asset value of each of the Fund and LAM. The Fund will not issue any fractional
shares to the Fund's shareholders. LAM's transfer agent will aggregate all
fractional shares, sell the resulting shares on the New York Stock Exchange at
the current market price for the shares and remit the cash proceeds to the
Fund's shareholders in proportion to their fractional shares.
Consummation of the Merger is subject to a number of conditions, including
shareholder approval and certain regulatory approvals. Upon consummation of the
Merger, LAM will change its name to "The Latin America Equity Fund, Inc." and
will adopt the Fund's investment objective and policies.
In addition, on June 27, 2000 the Board of Directors of the Fund approved the
overall terms of a self-tender program that the Fund intends to launch in
calendar year 2001, which terms include the following: (i) the Fund will make a
tender offer to acquire at least 15% of its outstanding shares during each
calendar year of the program, and (ii) the per share purchase price will be at
least 95% of the Fund's net asset value per share. Implementation of the
self-tender program is conditioned on consummation of the Merger. The
self-tender program is subject to change based on economic or market conditions
or other factors. For example, a sustained reduction in the market discount at
which the Fund's shares trade, a risk of material adverse tax consequences, or a
risk of the Fund becoming subject to delisting may lead the Board of Directors
to conclude that it is appropriate to suspend the self-tender program.
================================================================================
23
<PAGE>
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
On May 23, 2000, the annual meeting of shareholders of The Latin America Equity
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>
George W. Landau 5,662,387 362,668 1,100,473
Richard W. Watt 5,665,553 359,502 1,100,473
</TABLE>
In addition to the directors re-elected at the meeting, Dr. Enrique R. Arzac,
James J. Cattano, William W. Priest, Jr. and Martin M. Torino 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, 2000.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN NON-VOTES
--------- ------- ------- ---------
<S> <C> <C> <C> <C>
5,957,489 48,296 19,270 1,100,473
</TABLE>
(3) To approve a shareholder proposal requesting that the Board of Directors
present for shareholder approval a program to permit shareholders to
realize net asset value for their shares.
<TABLE>
<CAPTION>
DELEGATED
NON-VOTES/
FOR AGAINST ABSTAIN NON-VOTES
--------- ------- ------- ----------
<S> <C> <C> <C> <C>
3,131,877 750,787 63,375 3,179,489
</TABLE>
================================================================================
24
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM (UNAUDITED)
The InvestLink-SM- Program is sponsored and administered by EquiServe, L.P.,
not by The Latin America Equity Fund, Inc. (the "Fund"). EquiServe, L.P. will
act as program administrator (the "Program Administrator") of the InvestLink
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 Company 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.
EquiServe, L.P., as Program Administrator, administers the Program for
participants, keeps 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
==============================================================================
25
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM (UNAUDITED) (CONTINUED)
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 share) 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
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.
==============================================================================
26
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM (UNAUDITED) (CONTINUED)
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) 338-1176; Current
Shareholders--(800) 730-6001. All correspondence regarding the Program should
be directed to: EquiServe, L.P., InvestLink-SM- Program, P.O. Box 8040,
Boston, MA 02266-8040.
-------------------------------------------------
* InvestLink is a service mark of EquiServe, L.P.
==============================================================================
27
<PAGE>
SUMMARY OF GENERAL INFORMATION
The Fund--The Latin America Equity 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
securities. The Fund is managed and advised by Credit Suisse Asset
Management, LLC ("CSAM"). 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, 2000, CSAM-Americas managed approximately
$70.0 billion in assets.
SHAREHOLDER INFORMATION
The market price is published in: THE NEW YORK TIMES (daily) under the
designation "LatAEqt" and THE WALL STREET JOURNAL (daily), and BARRON'S (each
Monday) under the designation "LatinAmEqty". The Fund's New York Stock
Exchange trading symbol is LAQ. Weekly comparative net asset value (NAV) and
market price information about The Latin America Equity 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 Investment Fund, Inc. (LAM)
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 Equity 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
George W. Landau Director
Martin M. Torino Director
William W. Priest, Jr. Chairman of the Board of Directors
Richard W. Watt President and Director
Emily Alejos Chief Investment Officer
Yarek Aranowicz 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 ADVISER
Credit Suisse Asset Management, LLC
466 Lexington Avenue
New York, NY 10017
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
EquiServe, L.P.
P.O. Box 1865
Mail Stop 45-02-62
Boston, MA 02105
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Two Commerce Square, Suite 1700
2001 Market Street
Philadelphia, PA 19103
LEGAL COUNSEL
Willkie Farr & Gallagher
787 Seventh Avenue
New York, NY 10019
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.
LAQ
LISTED
NYSE
THE NEW YORK STOCK EXCHANGE
===============================================================================
3915-SAR-00
