-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FLvWXXkkv3KYYqMfZF/yFtg4VVd7rzGp7uUL+D21xF09cKHLAgh8DUikBeyJNkJX ufcdi2+K0e7p+NpfKB1QWA== 0001047469-99-013982.txt : 19990409 0001047469-99-013982.hdr.sgml : 19990409 ACCESSION NUMBER: 0001047469-99-013982 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990408 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LATIN AMERICA INVESTMENT FUND INC CENTRAL INDEX KEY: 0000862599 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 133577304 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: SEC FILE NUMBER: 811-06094 FILM NUMBER: 99589491 BUSINESS ADDRESS: STREET 1: 153 EAST 53RD ST- 58TH FLR STREET 2: C/O BEA ASSOCIATES INC CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 2128322626 MAIL ADDRESS: STREET 1: 103 BELLEVUE PARKWAY CITY: WIMINGTON STATE: DE ZIP: 19809 DEFA14A 1 DEFA14A SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant / / Filed by a party other than the Registrant / / Check the appropriate box: / / Preliminary Proxy Statement / / Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) / / Definitive Proxy Statement /X/ Definitive Additional Materials / / Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 THE LATIN AMERICA INVESTMENT FUND, INC. - -------------------------------------------------------------------------------- (Name of Registrant as Specified In Its Charter) - -------------------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): /X/ No fee required / / Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11 (1) Title of each class of securities to which transaction applies: ------------------------------------------------------------------------ (2) Aggregate number of securities to which transaction applies: ------------------------------------------------------------------------ (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): ------------------------------------------------------------------------ (4) Proposed maximum aggregate value of transaction: ------------------------------------------------------------------------ (5) Total fee paid: ------------------------------------------------------------------------ / / 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: ------------------------------------------------------------------------ (2) Form, Schedule or Registration Statement No.: ------------------------------------------------------------------------ (3) Filing Party: ------------------------------------------------------------------------ (4) Date Filed: ------------------------------------------------------------------------ THE LATIN AMERICA INVESTMENT FUND - ------------------------------------------------------------------------------- CREDIT SUISSE ASSET MANAGEMENT - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. FUND OBJECTIVES THE LATIN AMERICA INVESTMENT FUND, INC. (NYSE: LAM) IS A NON DIVERSIFIED, CLOSED-END MANAGEMENT INVESTMENT COMPANY. - - The Fund's investment objective is long term capital appreciation - - The Fund must have at least 65% of its total assets in Brazil, Chile, and Mexico - - The Fund may invest up to 35% of its total assets in debt securities of which no more than 30% may be invested in external debt obligations issued or guaranteed by Latin American governments or governmental entities (sovereign debt) - - No more than 25% of the Fund's assets will be invested in private equity securities 2 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. NAV/MARKET PRICE COMPARISON* Date of Inception: 8/1/90 TICKER:LAM COMPARATIVE DISCOUNT/PREMIUM REPORT [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points:
Date Discount(-)/Premium % 7/31/90 3.56% 8/3/90 -4.55% 8/10/90 -14.88% 8/17/90 -16.73% 8/24/90 -21.75% 8/31/90 -19.11% 9/7/90 -21.52% 9/14/90 -20.68% 9/21/90 -25.74% 9/28/90 -28.07% 10/5/90 -23.66% 10/12/90 -26.42% 10/19/90 -18.89% 10/26/90 -27.90% 10/31/90 -26.75% 11/2/90 -22.99% 11/9/90 -26.31% 11/16/90 -22.28% 11/23/90 -21.71% 11/30/90 -24.24% 12/7/90 -20.49% 12/14/90 -15.92% 12/21/90 -21.04% 12/28/90 -23.32% 12/31/90 -21.88% 1/4/91 -20.08% 1/11/91 -18.97% 1/18/91 -15.45% 1/25/91 -20.55% 1/31/91 -17.18% 2/1/91 -16.15% 2/8/91 -14.53% 2/15/91 -10.77% 2/22/91 -12.52% 2/28/91 -18.06% 3/1/91 -19.99% 3/8/91 -14.14% 3/15/91 -13.18% 3/22/91 -13.23% 3/29/91 -16.09% 4/5/91 -15.29% 4/12/91 -9.84% 4/19/91 -10.90% 4/26/91 -9.75% 4/30/91 -11.81% 5/3/91 -12.30% 5/10/91 -14.99% 5/17/91 -12.20% 5/24/91 -11.37% 5/31/91 -6.79% 6/7/91 -15.46% 6/14/91 -13.75% 6/21/91 -14.18% 6/28/91 -15.63% 7/5/91 -12.46% 7/12/91 -5.80% 7/19/91 -6.52% 7/26/91 -7.27% 7/31/91 -2.31% 8 /2/91 -2.25% 8/9/91 -3.39% 8/16/91 -8.82% 8/23/91 -8.58% 8/30/91 11.05% 9/6/91 0.82% 9/13/91 4.72% 9/20/91 0.77% 9/27/91 4.05% 9/30/91 0.81% 10/4/91 -3.28% 10/11/91 -0.30% 10/18/91 7.80% 10/25/91 6.19% 10/31/91 11.16% 11/1/91 8.43% 11/8/91 5.09% 11/15/91 -5.50% 11/22/91 -4.28% 11/29/91 -10.88% 12/6/91 -4.28% 12/13/91 -3.16% 12/20/91 4.51% 12/27/91 1.67% 12/31/91 1.73% 1/3/92 4.21% 1/10/92 5.76% 1/17/92 0.43% 1/24/92 -0.67% 1/31/92 -0.29% 2/7/92 -1.36% 2/14/92 -6.41% 2/21/92 -0.85% 2/28/92 6.62% 3/6/92 0.97% 3/13/92 -1.29% 3/20/92 5.00% 3/27/92 5.77% 3/31/92 3.55% 4/3/92 -2.55% 4/10/92 -4.93% 4/17/92 -7.76% 4/24/92 -5.27% 4/30/92 -3.43% 5/1/92 -4.17% 5/8/92 -4.82% 5/15/92 -0.21% 5/22/92 0.78% 5/29/92 -4.71% 6/5/92 -7.98% 6/12/92 -10.71% 6/19/92 -13.08% 6/26/92 -11.47% 6/30/92 -8.01% 7/2/92 -7.80% 7/10/92 -12.71% 7/17/92 -11.90% 7/24/92 -6.27% 7/31/92 -3.85% 8/7/92 -0.38% 8/14/92 -0.30% 8/21/92 2.25% 8/28/92 2.65% 8/31/92 4.08% 9/4/92 3.17% 9/11/92 -1.22% 9/18/92 -5.39% 9/25/92 -6.71% 9/30/92 -11.45% 10/9/92 -3.85% 10/16/92 -0.70% 10/23/92 -3.56% 10/30/92 -1.17% 11/6/92 5.13% 11/13/92 0.21% 11/20/92 -6.57% 11/27/92 -7.27% 11/30/92 -8.41% 12/4/92 -9.30% 12/11/92 -7.07% 12/18/92 -5.30% 12/24/92 -5.30% 12/31/92 -3.88% 1/8/93 -6.19% 1/15/93 -7.30% 1/22/93 -3.59% 1/29/93 14.04% 2/5/93 12.76% 2/12/93 9.45% 2/19/93 9.97% 2/26/93 11.04% 3/5/93 15.52% 3/12/93 10.58% 3/19/93 5.26% 3/26/93 -4.09% 3/31/93 -4.99% 4/2/93 -1.72% 4/8/93 2.63% 4/16/93 0.81% 4/23/93 -0.55% 4/30/93 0.29% 5/7/93 2.90% 5/14/93 1.18% 5/21/93 -2.61% 5/28/93 -6.57% 6/4/93 -9.64% 6/11/93 -7.50% 6/18/93 -7.20% 6/25/93 -7.01% 6/30/93 -4.62% 7/2/93 -3.94% 7/9/93 -4.47% 7/16/93 5.47% 7/23/93 3.39% 7/30/93 3.71% 8/6/93 9.81% 8/13/93 9.40% 8/20/93 0.12% 8/27/93 0.28% 8/31/93 1.00% 9/3/93 4.74% 9/10/93 1.44% 9/17/93 3.73% 9/24/93 0.68% 9/30/93 -3.76% 10/1/93 -5.00% 10/8/93 -5.52% 10/15/93 -4.09% 10/22/93 7.84% 10/29/93 4.62% 11/5/93 -0.51% 11/12/93 2.65% 11/19/93 8.61% 11/26/93 8.25% 11/30/93 8.29% 12/3/93 11.29% 12/10/93 19.07% 12/17/93 14.44% 12/23/93 14.74% 12/31/93 22.43% 1/7/94 13.34% 1/14/94 13.17% 1/21/94 16.92% 1/28/94 18.84% 1/31/94 15.34% 2/4/94 17.95% 2/11/94 12.21% 2/18/94 16.36% 2/25/94 3.36% 2/28/94 2.60% 3/3/94 7.40% 3/10/94 1.68% 3/17/94 -1.32% 3/25/94 -1.60% 3/31/94 -8.03% 4/8/94 -2.88% 4/15/94 -0.58% 4/22/94 4.43% 4/29/94 2.05% 5/6/94 -6.18% 5/13/94 -5.90% 5/20/94 -4.27% 5/27/94 -1.06% 5/31/94 -1.87% 6/3/94 -3.29% 6/10/94 -1.09% 6/17/94 -4.64% 6/24/94 -7.64% 6/30/94 -8.29% 7/1/94 -9.16% 7/8/94 -7.12% 7/15/94 -6.49% 7/22/94 -3.01% 7/29/94 -4.47% 8/5/94 -5.17% 8/12/94 -1.46% 8/19/94 -3.30% 8/26/94 -4.16% 8/31/94 -5.08% 9/2/94 -15.65% 9/9/94 -5.72% 9/16/94 -4.09% 9/23/94 -0.22% 9/30/94 -6.75% 10/6/94 -10.77% 10/14/94 -11.90% 10/21/94 -10.54% 10/28/94 -16.86% 10/31/94 -13.01% 11/4/94 -5.57% 11/11/94 -10.02% 11/18/94 -13.70% 11/25/94 -14.31% 11/30/94 -13.90% 12/2/94 -12.36% 12/9/94 -15.20% 12/16/94 -9.09% 12/23/94 -6.03% 12/30/94 -7.09% 1/6/95 -2.47% 1/13/95 1.51% 1/20/95 0.39% 1/27/95 0.40% 1/31/95 3.33% 2/3/95 -1.17% 2/10/95 -4.58% 2/17/95 -3.78% 2/24/95 -8.99% 2/28/95 -6.43% 3/3/95 -6.63% 3/10/95 1.38% 3/17/95 -4.05% 3/24/95 -7.96% 3/31/95 0.17% 4/7/95 -1.07% 4/14/95 -4.03% 4/21/95 -4.14% 4/28/95 0.33% 5/5/95 -5.38% 5/12/95 -7.38% 5/19/95 -6.30% 5/26/95 -6.16% 5/31/95 -7.01% 6/2/95 -8.15% 6/9/95 -11.77% 6/16/95 -10.16% 6/23/95 -14.63% 6/30/95 -10.61% 7/7/95 0.43% 7/14/95 -5.72% 7/21/95 -7.56% 7/28/95 -6.56% 7/31/95 -6.72% 8/4/95 -9.51% 8/11/95 -12.52% 8/18/95 -11.45% 8/25/95 -12.39% 8/31/95 -13.27% 9/8/95 -13.03% 9/15/95 -14.96% 9/22/95 -13.56% 9/29/95 -16.11% 10/6/95 -14.11% 10/13/95 -15.76% 10/20/95 -16.95% 10/27/95 -17.41% 10/31/95 -12.31% 11/3/95 -14.55% 11/10/95 -15.27% 11/17/95 -14.51% 11/24/95 -11.81% 11/30/95 -9.43% 12/1/95 -22.67% 12/8/95 -9.37% 12/15/95 -12.00% 12/22/95 -13.01% 12/29/95 -13.69% 1/5/96 -4.44% 1/12/96 -1.54% 1/19/96 -1.69% 1/26/96 -0.58% 1/31/96 -1.51% 2/2/96 -4.00% 2/9/96 -4.66% 2/16/96 -3.53% 2/23/96 -6.10% 2/29/96 -8.47% 3/1/96 -8.30% 3/8/96 -8.73% 3/15/96 -8.09% 3/22/96 -8.94% 3/29/96 -8.99% 4/5/96 -9.93% 4/12/96 -9.59% 4/19/96 -9.57% 4/26/96 -12.18% 4/30/96 -12.88% 5/3/96 -15.83% 5/10/96 -12.99% 5/17/96 -10.44% 5/24/96 -8.29% 5/31/96 -9.24% 6/7/96 -11.32% 6/14/96 -9.19% 6/21/96 -13.35% 6/30/96 -15.02% 7/5/96 -15.33% 7/12/96 -17.46% 7/19/96 -17.93% 7/26/96 -17.84% 7/31/96 -18.14% 8/2/96 -18.28% 8/9/96 -16.15% 8/16/96 -14.89% 8/23/96 -16.07% 8/31/96 -15.08% 9/6/96 -14.45% 9/13/96 -12.73% 9/20/96 -15.56% 9/27/96 -14.82% 9/30/96 -14.26% 10/4/96 -15.78% 10/11/96 -14.08% 10/18/96 -18.12% 10/25/96 -16.14% 10/31/96 -17.20% 11/1/96 -16.36% 11/8/96 -17.63% 11/15/96 -16.80% 11/22/96 -16.36% 11/30/96 -16.67% 12/6/96 -19.78% 12/13/96 -18.60% 12/20/96 -18.52% 12/27/96 -17.42% 12/31/96 -17.41% 1/3/97 -16.58% 1/10/97 -14.27% 1/17/97 -14.07% 1/24/97 -15.97% 1/31/97 -14.03% 2/7/97 -16.02% 2/14/97 -13.24% 2/21/97 -12.46% 2/28/97 -14.96% 3/7/97 -14.61% 3/14/97 -15.15% 3/21/97 -17.39% 3/27/97 -16.87% 3/31/97 -15.89% 4/4/97 -17.42% 4/11/97 -16.71% 4/18/97 -15.94% 4/25/97 -16.63% 4/30/97 -16.82% 5/2/97 -17.37% 5/9/97 -16.71% 5/16/97 -15.29% 5/23/97 -15.46% 5/30/97 -16.28% 6/6/97 -17.31% 6/13/97 -19.09% 6/20/97 -17.21% 6/27/97 -14.93% 6/30/97 -15.51% 7/3/97 -16.38% 7/11/97 -17.22% 7/18/97 -15.67% 7/25/97 -16.77% 7/31/97 -17.61% 8/1/97 -16.88% 8/8/97 -18.51% 8/15/97 -17.32% 8/22/97 -20.41% 8/29/97 -20.31% 9/5/97 -18.52% 9/12/97 -18.90% 9/19/97 -20.16% 9/26/97 -18.98% 9/30/97 -19.92% 10/3/97 -20.26% 10/10/97 -20.57% 10/17/97 -20.86% 10/24/97 -23.93% 10/31/97 -22.36% 11/7/97 -21.34% 11/14/97 -20.21% 11/21/97 -23.65% 11/28/97 -22.93% 12/5/97 -19.10% 12/12/97 -20.45% 12/19/97 -20.78% 12/26/97 -19.25% 12/31/97 -21.40% 1/2/98 -21.41% 1/9/98 -20.54% 1/16/98 -18.97% 1/23/98 -19.35% 1/30/98 -16.64% 2/6/98 -15.02% 2/13/98 -17.62% 2/20/98 -17.43% 2/27/98 -17.98% 3/6/98 -18.43% 3/13/98 -19.36% 3/20/98 -18.89% 3/27/98 -18.42% 3/31/98 -18.84% 4/3/98 -20.39% 4/10/98 -20.84% 4/17/98 -21.27% 4/24/98 -19.51% 4/30/98 -20.00% 5/1/98 -20.04% 5/8/98 -19.48% 5/15/98 -20.39% 5/22/98 -20.71% 5/29/98 -22.82% 6/5/98 -22.66% 6/12/98 -24.22% 6/19/98 -23.32% 6/26/98 -22.19% 6/30/98 -21.98% 7/3/98 -21.92% 7/10/98 -22.64% 7/17/98 -21.97% 7/24/98 -22.84% 7/31/98 -22.85% 8/7/98 -22.61% 8/14/98 -26.64% 8/21/98 -23.25% 8/28/98 -27.50% 8/31/98 -28.62% 9/4/98 -30.69% 9/11/98 -29.02% 9/18/98 -31.15% 9/25/98 -31.94% 9/30/98 -29.22% 10/2/98 -29.09% 10/9/98 -29.40% 10/16/98 -28.21% 10/23/98 -26.25% 10/30/98 -25.67% 11/6/98 -24.28% 11/13/98 -22.19% 11/20/98 -22.96% 11/27/98 -23.84% 11/30/98 -23.60% 12/4/98 -23.38% 12/11/98 -26.22% 12/18/98 -25.91% 12/31/98 -27.65% 1/8/99 -26.02% 1/15/99 -25.14% 1/22/99 -24.98% 1/29/99 -26.47% 2/5/99 -21.95% 2/12/99 -23.13% 2/19/99 -24.43% 2/26/99 -23.21% 3/5/99 -24.87% 3/12/99 -22.07% 3/19/99 -21.56% 3/26/99 -24.09%
PERFORMANCE RECORD: (US$)
1990 1991 1992 1993 1994 1995 1996 1997 1998 NAV(1) 17.09 105.78 8.31 54.71 3.23 -14.24 13.09 13.71 -33.33 Market Price(2) 17.60 122.45 9.17 60.34 5.51 -10.61 15.13 10.99 -32.39 MSCI Latin(3) -32.85 105.78 8.31 54.71 3.23 -14.24 13.09 13.71 -33.33
DIVIDEND DISTRIBUTION: (PER SHARE US$) 0.2647 3.469 2.44 8.87 4.40 0.19 0.23 2.63 0.45
*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 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. COMPARATIVE PERFORMANCE REPORT*
YEAR YEAR YEAR FOURTH INCEPTION ENDED ENDED ENDED QUARTER DATE 1996 1997 6/20/05 12/31/98 --------- ------ ------ -------- -------- Latin America Investment Fund, Inc. 8/01/90 13.13% 13.71% -33.33% 10.87% Latin America Discovery Fund 6/23/92 46.38% 42.04% -43.62% 10.35% Morgan Grenfell Latin America (a) 3/31/94 27.80% 18.12% -37.78% 6.31% Scudder Latin America Inv Trust (a) 6/03/94 27.86% 31.72% -33.84% 4.40% MSCI Emerging Markets Latin America Index 22.21% 31.64% -35.11% 7.08%
Source: Lipper Analytical Services (a) This Fund is not registered under the Investment Company Act of 1940 1998 PERFORMANCE IN ABSOLUTE TERMS WAS AWFUL. IN RELATIVE TERMS, LAM OUTPERFORMED. - - 1998 was a torrid time for the Latin markets - - The strategy of focusing on the larger stocks helped only marginally as they were sold to provide liquidity - - Increasing the exposure to bonds to the maximum allowed proved to be a good move - - With the benefit of hindsight, more cash would have been the best strategy 4 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. CURRENT STRUCTURE COUNTRY ALLOCATION [CHART] In the printed version of the document, a pie chart appears which depicts the following percentages:
Allocation Country (% of Total Portfolio+) Argentina 19% Brazil 22% Chile 7% Colombia 2% Mexico 34% Peru 4% Venezuela 7% Other* 5%
*Other includes Jamaica, Latin America, Panama, Global, and Costa Rica **A list of portfolio holdings for the preceding 12 months is available upon request.
TOP TEN HOLDINGS (As of 2/28/99) Name of Issuer Country of Issuer % of Total Portfolio+ Republic of Argentina Argentina 9.4% United Mexican States Mexico 7.5% Telefonos de Mexico, S.A. de C.V. Mexico 7.3% Telecomunicacoes Brasileiras S.A. Brazil 7.3% Republic of Venezuela Venezuela 6.3% Federal Republic of Brazil Brazil 5.7% Camuzzi Argentina S.A. Argentina 4.0% Cifra S.A. de C.V. Mexico 3.3% Cementos Mexicanos S.A. Mexico 3.1% YPFSociedad Anonima Argentina 3.0%
+ excluding cash 5 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. MANAGEMENT STYLE - - Equity component of the Fund comprises two elements -publicly listed equities (typically range 50-80%) -privately held (typically range 0-10%) - - Debt component managed independently by SBAM -typically ranges from 5-35% - - Main emphasis of equity investments in "core" blue chip positions - - Use lower volatility of bonds (and cash) component to reduce overall Fund volatility - - Opportunistic switching between bonds and equities 6 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. RECENT DEVELOPMENTS IN CONTEXT LATIN AMERICA STOCK PRICE PERFORMANCE LTM % CHANGE 1991-1998 [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points: % change
Date % Change 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
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 $50bln C. DEFLATION? - - Contagion from ASIAN crisis - - October 1997 Brazil barely escapes - - Mid-1998 Russia default plus Japanese inertia results in 40% fall in one month (August) - - Brazil devalues and all of Latin America is held hostage 7 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. LATIN AMERICA: ECONOMIC OUTLOOK SHARPLY LOWER GROWTH [GRAPH] In the printed version of the document, a horizontal linear graph appears which depicts the following percentages:
1991 1992 1993 1994 1995 1996 1997 1998E 1999F 2000F Mexico 5.1 4.2 3.6 2.0 4.5 -6.2 5.1 7.0 4.9 1.2 Argentina -1.8 10.6 9.6 5.7 8.0 -4.0 4.8 8.6 4.4 -2.1 Chile 3.3 7.3 12.3 7.0 5.7 10.6 7.4 7.1 3.2 0.2 Colombia 4.3 2.0 4.0 5.4 5.8 5.8 2.1 3.1 1.6 0.8 Peru -3.8 2.9 -1.7 6.4 13.1 7.2 2.6 7.2 0.6 1.2 Ecuador 3.0 4.9 3.6 2.0 4.3 2.3 2.0 3.4 0.7 -4.3 Brazil -4.3 0.3 -0.8 4.2 5.9 4.2 2.8 3.7 0.5 -6.0 Venezuela 6.5 9.7 6.8 0.3 -2.3 3.7 -0.4 5.1 -0.7 -3.0
ECONOMIC GROWTH PROSPECTS POOR - - Pressures on exchange rates and interest rates - - Financing difficulties due to reduced access to international capital markets - - Multilateral/bilateral funding much more important - - Brazil, Argentina, and Venezuela most affected; Chile relatively insulated 8 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. LATIN AMERICA: FINANCING PRESSURES - - Financial pressures could be manageable if all goes well - - Argentina and Mexico are most vulnerable - - The wild card everywhere: private sector capital flight
1999F - ---------------------------------------------------------------------------------------------------------------- ARGENTINA MEXICO BRAZIL CHILE VENEZUELA MEXICO(12/94) KOREA (12/97) US$BILLION Short Term Bank Debt 34.5 28.2 35.0* 10.1 4.8 60.0 100.0 Amortization 8.8 14.7 32.9 2.2 3.6 11.0 6.0 Current Account Deficit 9.2 10.3 13.2 2.7 4.1 30.0 2.0 TOTAL EXPOSURE 52.4 53.2 81.1 15.0 12.6 101.0 108.0 Gross Revenues 26.4 30.7 35.8 16.0 13.9 6.0 6.0 Multilateral Support 0.0 0.0 25.0 0.0 0.0 0.0 38.0 TOTAL RESERVES 26.4 30.7 60.8 16.0 13.9 6.0 44.0 EXPOSURE/RESOURCES (%) 2.0 1.7 1.3 0.9 0.9 16.8 2.5 - ----------------------------------------------------------------------------------------------------------------
Source: Salomon Smith Barney, BIS (end June 1998 data), Salomon Smith Barney Forecast for 1999*Salomon Smith Barney Estimate 9 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. BRAZIL
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 -------------------- ---------------------- ---------------------- ------------------------
Source: Bear Stearns, 2/99 10 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. SCHEDULED DEBT AMORTIZATIONS [GRAPH] In the printed version of the document, a columnar graph appears which depicts the following plot points:
US$MILLIONS January February March April May June Eurobonds 650 1500 1550 1000 750 1450 Loans 250 400 1250 300 1000 Total 650 1696 1929 2344 1057 2491
Source: Bozano, Simonsen 11 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. BRAZIL: INTERNATIONAL RESERVES IN 1H 1999 INTERNATIONAL LIQUIDITY [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points:
Date U.S.$Millions 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
+ forecast Source: Solomon Smith Barney TOUGH POLICY CHOICES AHEAD - - Currency float has provided short-term relief - - Harsh policy choices need to be strictly followed - - Deep recession ahead -Lower interest rates critical, but unlikely in the near future - - Critical issues to monitor -Fiscal adjustment -Usable Fx reserves, market interest rates -IMF consultations and official financial assistance -Private capital inflows 12 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. BRAZIL: EVOLUTION & PROSPECTS FOR NET PUBLIC SECTOR DEBT NET PUBLIC SECTOR DEBT AS A % OF GDP [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points:
Date % of GDP 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
+ forecast AN UPSIDE SCENARIO? - - Stabilizing the foreign exchange market -The approach to the commercial banks -Bridge financing from IFIs -Current account adjustment - - Keeping inflation under control -Implementing the fiscal program -Inflation targeting at the central bank -Pass-through to consumer prices - - Managing internal debt dynamics -Real interest rates and economic growth -Evolution of internal debt ratios -Avoiding forced scheduling CONCLUSION: PROBABLITY OF A "MUDDLE THROUGH" SCENARIO IS INCREASING 13 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. MEXICO FISCAL BUDGET [GRAPH] In the printed version of the document, a vertical and linear graph appears which depicts the following plot points:
Yearly Operational Balance as GDP, Annual Growth Quarters % of GDP for Past 12 Months in Real Terms 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%
CURRENT ACCOUNT BALANCE [GRAPH] In the printed version of the document, a vertical and linear graph appears which depicts the following plot points:
Yearly Current Account Trade Balance for Services, Income and Quarters as a % of GDP Past 12 Months Transfers Balance 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
Source: Merrill Lynch - - Mexico managed its fiscal budget prudently in 1998 - - Oil price declines were met with successive cuts in expenditures - - This clearly set the stage for reduced sovereign risk recently - - At the same time, the current account widened significantly - - FDI flows were robust and covered the deficit, but export growth is a key variable for 1999 14 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. COPPER PRICE & INVENTORIES LME 1990-1999 COPPER PRICE [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points:
Date Inventories LME Cu LME, spot 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
CHILEAN TRADE DEFICIT [GRAPH] In the printed version of the document, a vertical and linear graph appears which depicts the following plot points:
12 Months Period Ending U.S.$Millions 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
Source: Celfin 15 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. ARGENTINA FISCAL BUDGET [GRAPH] In the printed version of the document, a vertical and linear graph appears which depicts the following plot points:
Yearly Operational Balance as GDP Annual Growth Quarters % of GDP for Past 12 Months in Real Terms 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%
CURRENT ACCOUNT BALANCE [GRAPH] In the printed version of the document, a vertical and linear graph appears which depicts the following plot points:
Yearly Current Account Trade Balance for Services, Income and Quarters as a % of GDP Past 12 Months Transfers Balance 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
Source: Merrill Lynch - - Despite a substantial period of economic growth, Argentina has fiscal deficit - - Fiscal reform is unlikely ahead of the Presidential elections - - The current account deficit has increased and exports face further pressures due to Brazil - - Talk of dollarization is potentially bad news 16 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. ARE LATIN AMERICAN STOCK MARKETS CHEAP? LATIN AMERICA: 12-MONTH FORWARD P/E [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points:
Date 12MF PE Mean + 1 Stdev - 1 Stdev 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
Source: Bear Stearns - - The markets have a tendency to overshoot - - Asset prices start to incorporate the worst case scenario - - International community steps up support, restores confidence in the region. Stock prices find a floor. 17 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. SOVEREIGN SPREADS ARGENTINA 9.75% [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points:
Date Spread 8/21/97 310 8/22/97 310 8/25/97 310 8/26/97 334 8/27/97 340 8/28/97 333 8/29/97 335 9/2/97 341 9/3/97 343 9/4/97 342 9/5/97 345 9/8/97 345 9/9/97 344 9/10/97 345 9/11/97 346 9/12/97 338 9/15/97 338 9/16/97 331 9/17/97 328 9/18/97 328 9/19/97 325 9/22/97 328 9/23/97 336 9/24/97 338 9/25/97 339 9/26/97 339 9/29/97 335 9/30/97 339 10/1/97 338 10/2/97 336 10/3/97 329 10/6/97 331 10/7/97 372 10/8/97 413 10/9/97 587 10/10/97 587 10/14/97 614 10/15/97 610 10/16/97 537 10/17/97 489 10/20/97 450 10/21/97 497 10/22/97 523 10/23/97 545 10/24/97 562 10/27/97 590 10/28/97 617 10/29/97 566 10/30/97 548 10/31/97 509 11/3/97 521 11/4/97 500 11/5/97 496 11/6/97 455 11/7/97 496 11/10/97 479 11/12/97 479 11/13/97 472 11/14/97 465 11/17/97 443 11/18/97 431 11/20/97 429 11/21/97 419 11/24/97 401 11/25/97 412 11/26/97 432 12/1/97 471 12/2/97 494 12/3/97 518 12/4/97 479 12/5/97 478 12/8/97 474 12/9/97 487 12/10/97 495 12/11/97 491 12/12/97 486 12/15/97 477 12/16/97 468 12/17/97 459 12/18/97 434 12/19/97 431 12/22/97 429 12/23/97 431 12/24/97 433 12/26/97 450 12/29/97 467 12/30/97 441 12/31/97 478 1/2/98 489 1/5/98 489 1/6/98 472 1/7/98 466 1/8/98 481 1/9/98 460 1/12/98 462 1/13/98 464 1/14/98 466 1/15/98 462 1/16/98 457 1/20/98 452 1/21/98 441 1/22/98 442 1/23/98 438 1/26/98 417 1/27/98 405 1/28/98 410 1/29/98 407 1/30/98 404 2/2/98 400 2/3/98 407 2/4/98 403 2/5/98 401 2/6/98 411 2/9/98 410 2/10/98 411 2/11/98 411 2/12/98 410 2/13/98 406 2/17/98 411 2/18/98 409 2/19/98 406 2/20/98 397 2/23/98 396 2/24/98 396 2/25/98 390 2/26/98 385 2/27/98 388 3/2/98 396 3/3/98 392 3/4/98 402 3/5/98 395 3/6/98 395 3/9/98 400 3/10/98 394 3/11/98 398 3/12/98 401 3/13/98 397 3/16/98 394 3/17/98 395 3/18/98 388 3/19/98 395 3/20/98 394 3/23/98 394 3/24/98 388 3/25/98 392 3/27/98 397 3/30/98 401 3/31/98 413 4/1/98 437 4/2/98 430 4/3/98 422 4/6/98 421 4/7/98 418 4/8/98 415 4/9/98 413 4/13/98 413 4/14/98 411 4/15/98 419 4/16/98 420 4/17/98 422 4/20/98 413 4/21/98 413 4/22/98 410 4/23/98 416 4/24/98 427 4/27/98 431 4/28/98 428 4/29/98 422 4/30/98 423 5/1/98 423 5/4/98 427 5/5/98 437 5/6/98 435 5/7/98 434 5/8/98 433 5/11/98 450 5/12/98 445 5/13/98 443 5/14/98 436 5/15/98 471 5/18/98 467 5/19/98 457 5/20/98 451 5/21/98 457 5/22/98 469 5/26/98 480 5/27/98 488 5/28/98 473 5/29/98 477 6/1/98 488 6/2/98 462 6/3/98 457 6/4/98 451 6/5/98 452 6/8/98 458 6/9/98 461 6/10/98 476 6/11/98 502 6/12/98 497 6/15/98 517 6/16/98 502 6/17/98 479 6/18/98 490 6/19/98 486 6/22/98 488 6/23/98 486 6/24/98 490 6/25/98 498 6/26/98 514 6/29/98 510 6/30/98 504 7/1/98 489 7/2/98 489 7/6/98 500 7/7/98 487 7/8/98 472 7/9/98 481 7/10/98 465 7/13/98 449 7/14/98 440 7/15/98 450 7/16/98 435 7/17/98 434 7/20/98 428 7/21/98 440 7/22/98 441 7/23/98 452 7/24/98 451 7/27/98 453 7/28/98 456 7/29/98 453 7/30/98 452 7/31/98 453 8/3/98 465 8/4/98 485 8/5/98 482 8/6/98 485 8/7/98 528 8/10/98 571 8/11/98 555 8/12/98 577 8/13/98 520 8/14/98 511 8/17/98 572 8/18/98 568 8/19/98 577 8/20/98 644 8/21/98 810 8/24/98 793 8/25/98 726 8/26/98 771 8/27/98 986 8/28/98 899 8/31/98 976 9/1/98 746 9/2/98 855 9/3/98 896 9/4/98 890 9/8/98 855 9/9/98 886 9/10/98 1070 9/11/98 1004 9/14/98 1002 9/15/98 834 9/16/98 772 9/17/98 864 9/18/98 804 9/21/98 815 9/22/98 721 9/23/98 624 9/24/98 710 9/25/98 673 9/28/98 685 9/29/98 668 9/30/98 723 10/1/98 777 10/2/98 679 10/5/98 721 10/6/98 689 10/7/98 699 10/8/98 670 10/9/98 613 10/13/98 581 10/14/98 612 10/15/98 560 10/16/98 604 10/19/98 607 10/20/98 597 10/21/98 604 10/22/98 614 10/23/98 631 10/26/98 636 10/27/98 651 10/28/98 675 10/29/98 687 10/30/98 651 11/2/98 587 11/3/98 599 11/4/98 606 11/5/98 595 11/9/98 608 11/10/98 620 11/11/98 620 11/12/98 632 11/13/98 632 11/16/98 626 11/17/98 626 11/18/98 642 11/19/98 632 11/20/98 573 11/23/98 573 11/24/98 580 11/25/98 582 11/27/98 570 11/30/98 601 12/1/98 610 12/2/98 616 12/3/98 642 12/4/98 624 12/7/98 613 12/8/98 619 12/9/98 622 12/10/98 634 12/11/98 629 12/14/98 660 12/15/98 625 12/16/98 639 12/17/98 639 12/18/98 639 12/21/98 615 12/22/98 587 12/23/98 584 12/24/98 584 12/28/98 597 12/29/98 586 12/30/98 592 12/31/98 590 1/4/99 587 1/5/99 568 1/6/99 577 1/7/99 585 1/8/99 586 1/11/99 610 1/12/99 649 1/13/99 802 1/14/99 899 1/15/99 713 1/19/99 691 1/20/99 686 1/21/99 754 1/22/99 759 1/25/99 773 1/26/99 730 1/27/99 720 1/28/99 710 1/29/99 695 2/1/99 664 2/2/99 649 2/3/99 650 2/4/99 665 2/5/99 667 2/8/99 670 2/9/99 676 2/10/99 668 2/11/99 646 2/12/99 641 2/16/99 631 2/17/99 660 2/18/99 660 2/19/99 667 2/22/99 666 2/23/99 675 2/24/99 657 2/25/99 661 2/26/99 668 3/1/99 656 3/2/99 673 3/3/99 666 3/4/99 641 3/5/99 641 3/8/99 653 3/9/99 657 3/10/99 641 3/11/99 639 3/12/99 625 3/15/99 618 3/16/99 626 3/17/99 628 3/18/99 618 3/19/99 613 3/22/99 613 3/23/99 625 3/24/99 621 3/25/99 626 3/26/99 622 3/29/99 628 3/30/99 638 3/31/99 4/1/99 MEXICO 11.5% [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points: Date Spread 5/21/97 349 5/22/97 347 5/23/97 336 5/27/97 335 5/28/97 332 5/29/97 331 5/30/97 330 6/2/97 328 6/3/97 325 6/4/97 334 6/5/97 328 6/6/97 328 6/9/97 332 6/10/97 327 6/11/97 319 6/12/97 319 6/13/97 318 6/16/97 314 6/17/97 311 6/18/97 304 6/19/97 306 6/20/97 310 6/23/97 313 6/24/97 315 6/25/97 331 6/26/97 327 6/27/97 319 6/30/97 324 7/1/97 326 7/2/97 327 7/3/97 313 7/7/97 309 7/8/97 307 7/9/97 307 7/10/97 313 7/11/97 302 7/14/97 307 7/15/97 298 7/16/97 297 7/17/97 296 7/18/97 286 7/21/97 281 7/22/97 288 7/23/97 290 7/24/97 281 7/25/97 287 7/28/97 278 7/29/97 286 7/30/97 303 7/31/97 290 8/1/97 288 8/4/97 286 8/5/97 287 8/6/97 287 8/7/97 293 8/8/97 292 8/11/97 296 8/12/97 301 8/13/97 297 8/14/97 292 8/15/97 294 8/18/97 299 8/19/97 297 8/20/97 301 8/21/97 301 8/22/97 301 8/25/97 303 8/26/97 315 8/27/97 315 8/28/97 320 8/29/97 333 9/2/97 310 9/3/97 310 9/4/97 310 9/5/97 308 9/8/97 308 9/9/97 303 9/10/97 306 9/11/97 308 9/12/97 298 9/15/97 299 9/16/97 293 9/17/97 283 9/18/97 286 9/19/97 286 9/22/97 280 9/23/97 292 9/24/97 289 9/25/97 290 9/26/97 292 9/29/97 294 9/30/97 286 10/1/97 296 10/2/97 296 10/3/97 292 10/6/97 294 10/7/97 324 10/8/97 354 10/9/97 488 10/10/97 420 10/14/97 448 10/15/97 477 10/16/97 457 10/17/97 407 10/20/97 385 10/21/97 395 10/22/97 425 10/23/97 444 10/24/97 440 10/27/97 456 10/28/97 472 10/29/97 449 10/30/97 436 10/31/97 421 11/3/97 425 11/4/97 418 11/5/97 405 11/6/97 388 11/7/97 391 11/10/97 390 11/12/97 383 11/13/97 381 11/14/97 379 11/17/97 388 11/18/97 350 11/20/97 359 11/21/97 349 11/24/97 347 11/25/97 349 11/26/97 357 12/1/97 378 12/2/97 386 12/3/97 404 12/4/97 392 12/5/97 388 12/8/97 383 12/9/97 393 12/10/97 404 12/11/97 399 12/12/97 395 12/15/97 391 12/16/97 388 12/17/97 384 12/18/97 376 12/19/97 368 12/22/97 367 12/23/97 367 12/24/97 368 12/26/97 377 12/29/97 386 12/30/97 380 12/31/97 391 1/2/98 403 1/5/98 416 1/6/98 402 1/7/98 396 1/8/98 400 1/9/98 388 1/12/98 390 1/13/98 393 1/14/98 395 1/15/98 393 1/16/98 384 1/20/98 385 1/21/98 373 1/22/98 372 1/23/98 366 1/26/98 361 1/27/98 350 1/28/98 351 1/29/98 347 1/30/98 347 2/2/98 342 2/3/98 344 2/4/98 341 2/5/98 340 2/6/98 347 2/9/98 350 2/10/98 354 2/11/98 357 2/12/98 356 2/13/98 354 2/17/98 356 2/18/98 350 2/19/98 351 2/20/98 344 2/23/98 339 2/24/98 338 2/25/98 334 2/26/98 332 2/27/98 334 3/2/98 340 3/3/98 336 3/4/98 343 3/5/98 340 3/6/98 344 3/9/98 349 3/10/98 344 3/11/98 347 3/12/98 350 3/13/98 337 3/16/98 330 3/17/98 334 3/18/98 326 3/19/98 334 3/20/98 338 3/23/98 336 3/24/98 331 3/25/98 336 3/27/98 343 3/30/98 350 3/31/98 358 4/1/98 376 4/2/98 370 4/3/98 359 4/6/98 352 4/7/98 349 4/8/98 345 4/9/98 341 4/13/98 340 4/14/98 340 4/15/98 345 4/16/98 345 4/17/98 345 4/20/98 342 4/21/98 339 4/22/98 339 4/23/98 344 4/24/98 357 4/27/98 356 4/28/98 351 4/29/98 351 4/30/98 350 5/1/98 350 5/4/98 353 5/5/98 361 5/6/98 360 5/7/98 358 5/8/98 359 5/11/98 372 5/12/98 371 5/13/98 373 5/14/98 367 5/15/98 391 5/18/98 389 5/19/98 385 5/20/98 384 5/21/98 387 5/22/98 396 5/26/98 406 5/27/98 414 5/28/98 395 5/29/98 401 6/1/98 408 6/2/98 394 6/3/98 388 6/4/98 382 6/5/98 377 6/8/98 383 6/9/98 384 6/10/98 397 6/11/98 423 6/12/98 421 6/15/98 439 6/16/98 436 6/17/98 414 6/18/98 433 6/19/98 431 6/22/98 434 6/23/98 433 6/24/98 436 6/25/98 442 6/26/98 463 6/29/98 458 6/30/98 451 7/1/98 443 7/2/98 444 7/6/98 460 7/7/98 444 7/8/98 433 7/9/98 439 7/10/98 425 7/13/98 414 7/14/98 402 7/15/98 402 7/16/98 391 7/17/98 386 7/20/98 381 7/21/98 395 7/22/98 395 7/23/98 405 7/24/98 410 7/27/98 407 7/28/98 406 7/29/98 405 7/30/98 406 7/31/98 411 8/3/98 421 8/4/98 437 8/5/98 436 8/6/98 443 8/7/98 491 8/10/98 537 8/11/98 538 8/12/98 574 8/13/98 506 8/14/98 503 8/17/98 558 8/18/98 540 8/19/98 561 8/20/98 641 8/21/98 764 8/24/98 750 8/25/98 655 8/26/98 673 8/27/98 859 8/28/98 795 8/31/98 851 9/1/98 740 9/2/98 750 9/3/98 789 9/4/98 767 9/8/98 754 9/9/98 780 9/10/98 883 9/11/98 853 9/14/98 876 9/15/98 779 9/16/98 689 9/17/98 754 9/18/98 730 9/21/98 766 9/22/98 694 9/23/98 627 9/24/98 669 9/25/98 653 9/28/98 681 9/29/98 659 9/30/98 722 10/1/98 762 10/2/98 703 10/5/98 747 10/6/98 711 10/7/98 698 10/8/98 676 10/9/98 637 10/13/98 614 10/14/98 639 10/15/98 605 10/16/98 631 10/19/98 630 10/20/98 614 10/21/98 615 10/22/98 605 10/23/98 605 10/26/98 616 10/27/98 635 10/28/98 652 10/29/98 663 10/30/98 635 11/2/98 582 11/3/98 580 11/4/98 564 11/5/98 555 11/9/98 558 11/10/98 572 11/11/98 572 11/12/98 593 11/13/98 586 11/16/98 574 11/17/98 568 11/18/98 570 11/19/98 557 11/20/98 539 11/23/98 539 11/24/98 550 11/25/98 553 11/27/98 548 11/30/98 575 12/1/98 595 12/2/98 610 12/3/98 626 12/4/98 618 12/7/98 608 12/8/98 606 12/9/98 602 12/10/98 608 12/11/98 604 12/14/98 633 12/15/98 605 12/16/98 609 12/17/98 606 12/18/98 606 12/21/98 583 12/22/98 577 12/23/98 566 12/24/98 566 12/28/98 580 12/29/98 568 12/30/98 574 12/31/98 572 1/4/99 574 1/5/99 536 1/6/99 549 1/7/99 547 1/8/99 550 1/11/99 564 1/12/99 622 1/13/99 721 1/14/99 723 1/15/99 619 1/19/99 574 1/20/99 570 1/21/99 608 1/22/99 617 1/25/99 632 1/26/99 615 1/27/99 619 1/28/99 599 1/29/99 587 2/1/99 567 2/2/99 564 2/3/99 579 2/4/99 577 2/5/99 590 2/8/99 597 2/9/99 598 2/10/99 585 2/11/99 569 2/12/99 551 2/16/99 546 2/17/99 560 2/18/99 557 2/19/99 559 2/22/99 556 2/23/99 558 2/24/99 555 2/25/99 548 2/26/99 540 3/1/99 535 3/2/99 541 3/3/99 546 3/4/99 533 3/5/99 520 3/8/99 533 3/9/99 531 3/10/99 525 3/11/99 513 3/12/99 499 3/15/99 485 3/16/99 490 3/17/99 490 3/18/99 489 3/19/99 478 3/22/99 480 3/23/99 483 3/24/99 496 3/25/99 487 3/26/99 489 3/29/99 481 3/30/99 485 3/31/99 4/1/99 BRAZIL 10.125% [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points: Date Spread 5/21/97 384 5/22/97 382 5/23/97 375 5/27/97 373 5/28/97 378 5/29/97 386 5/30/97 385 6/2/97 382 6/3/97 381 6/4/97 388 6/5/97 382 6/6/97 383 6/9/97 382 6/10/97 383 6/11/97 381 6/12/97 379 6/13/97 379 6/16/97 376 6/17/97 374 6/18/97 371 6/19/97 367 6/20/97 367 6/23/97 372 6/24/97 374 6/25/97 394 6/26/97 393 6/27/97 388 6/30/97 398 7/1/97 396 7/2/97 397 7/3/97 389 7/7/97 384 7/8/97 382 7/9/97 382 7/10/97 381 7/11/97 374 7/14/97 381 7/15/97 371 7/16/97 374 7/17/97 378 7/18/97 368 7/21/97 361 7/22/97 357 7/23/97 366 7/24/97 357 7/25/97 364 7/28/97 361 7/29/97 366 7/30/97 381 7/31/97 374 8/1/97 370 8/4/97 372 8/5/97 372 8/6/97 373 8/7/97 374 8/8/97 370 8/11/97 380 8/12/97 390 8/13/97 385 8/14/97 381 8/15/97 381 8/18/97 383 8/19/97 374 8/20/97 382 8/21/97 377 8/22/97 374 8/25/97 373 8/26/97 384 8/27/97 385 8/28/97 395 8/29/97 404 9/2/97 381 9/3/97 384 9/4/97 378 9/5/97 381 9/8/97 384 9/9/97 380 9/10/97 382 9/11/97 381 9/12/97 377 9/15/97 378 9/16/97 371 9/17/97 359 9/18/97 363 9/19/97 360 9/22/97 356 9/23/97 368 9/24/97 370 9/25/97 372 9/26/97 373 9/29/97 371 9/30/97 362 10/1/97 369 10/2/97 371 10/3/97 367 10/6/97 363 10/7/97 396 10/8/97 429 10/9/97 602 10/10/97 583 10/14/97 665 10/15/97 609 10/16/97 682 10/17/97 620 10/20/97 562 10/21/97 578 10/22/97 617 10/23/97 651 10/24/97 646 10/27/97 678 10/28/97 710 10/29/97 683 10/30/97 636 10/31/97 607 11/3/97 619 11/4/97 590 11/5/97 577 11/6/97 547 11/7/97 578 11/10/97 572 11/12/97 551 11/13/97 548 11/14/97 546 11/17/97 536 11/18/97 507 11/20/97 504 11/21/97 474 11/24/97 460 11/25/97 468 11/26/97 487 12/1/97 527 12/2/97 560 12/3/97 570 12/4/97 537 12/5/97 529 12/8/97 515 12/9/97 541 12/10/97 566 12/11/97 553 12/12/97 539 12/15/97 533 12/16/97 526 12/17/97 519 12/18/97 499 12/19/97 493 12/22/97 492 12/23/97 492 12/24/97 493 12/26/97 510 12/29/97 533 12/30/97 528 12/31/97 542 1/2/98 559 1/5/98 583 1/6/98 549 1/7/98 543 1/8/98 560 1/9/98 538 1/12/98 544 1/13/98 550 1/14/98 556 1/15/98 551 1/16/98 541 1/20/98 534 1/21/98 519 1/22/98 523 1/23/98 511 1/26/98 503 1/27/98 488 1/28/98 489 1/29/98 481 1/30/98 480 2/2/98 473 2/3/98 474 2/4/98 470 2/5/98 469 2/6/98 472 2/9/98 476 2/10/98 479 2/11/98 481 2/12/98 477 2/13/98 474 2/17/98 475 2/18/98 469 2/19/98 470 2/20/98 466 2/23/98 461 2/24/98 460 2/25/98 452 2/26/98 451 2/27/98 453 3/2/98 462 3/3/98 458 3/4/98 462 3/5/98 457 3/6/98 454 3/9/98 448 3/10/98 444 3/11/98 441 3/12/98 444 3/13/98 434 3/16/98 431 3/17/98 437 3/18/98 424 3/19/98 433 3/20/98 434 3/23/98 427 3/24/98 422 3/25/98 425 3/27/98 433 3/30/98 438 3/31/98 449 4/1/98 472 4/2/98 463 4/3/98 451 4/6/98 446 4/7/98 442 4/8/98 439 4/9/98 435 4/13/98 432 4/14/98 433 4/15/98 445 4/16/98 446 4/17/98 448 4/20/98 443 4/21/98 447 4/22/98 443 4/23/98 451 4/24/98 468 4/27/98 464 4/28/98 458 4/29/98 450 4/30/98 452 5/1/98 453 5/4/98 460 5/5/98 471 5/6/98 471 5/7/98 471 5/8/98 475 5/11/98 490 5/12/98 489 5/13/98 485 5/14/98 480 5/15/98 522 5/18/98 515 5/19/98 509 5/20/98 500 5/21/98 510 5/22/98 523 5/26/98 535 5/27/98 550 5/28/98 527 5/29/98 539 6/1/98 553 6/2/98 524 6/3/98 525 6/4/98 517 6/5/98 518 6/8/98 530 6/9/98 534 6/10/98 557 6/11/98 588 6/12/98 581 6/15/98 608 6/16/98 593 6/17/98 566 6/18/98 586 6/19/98 586 6/22/98 592 6/23/98 588 6/24/98 595 6/25/98 618 6/26/98 654 6/29/98 639 6/30/98 630 7/1/98 608 7/2/98 616 7/6/98 643 7/7/98 632 7/8/98 612 7/9/98 607 7/10/98 584 7/13/98 567 7/14/98 553 7/15/98 564 7/16/98 549 7/17/98 542 7/20/98 531 7/21/98 541 7/22/98 539 7/23/98 560 7/24/98 567 7/27/98 580 7/28/98 583 7/29/98 573 7/30/98 570 7/31/98 566 8/3/98 587 8/4/98 608 8/5/98 614 8/6/98 625 8/7/98 697 8/10/98 769 8/11/98 764 8/12/98 814 8/13/98 748 8/14/98 712 8/17/98 790 8/18/98 778 8/19/98 820 8/20/98 911 8/21/98 1061 8/24/98 1077 8/25/98 1002 8/26/98 1084 8/27/98 1316 8/28/98 1208 8/31/98 1288 9/1/98 1113 9/2/98 1176 9/3/98 1206 9/4/98 1267 9/8/98 1217 9/9/98 1252 9/10/98 1489 9/11/98 1392 9/14/98 1416 9/15/98 1235 9/16/98 1131 9/17/98 1299 9/18/98 1228 9/21/98 1255 9/22/98 1152 9/23/98 1075 9/24/98 1151 9/25/98 1119 9/28/98 1119 9/29/98 1122 9/30/98 1200 10/1/98 1278 10/2/98 1180 10/5/98 1268 10/6/98 1194 10/7/98 1184 10/8/98 1140 10/9/98 1059 10/13/98 964 10/14/98 1004 10/15/98 922 10/16/98 975 10/19/98 977 10/20/98 929 10/21/98 957 10/22/98 937 10/23/98 939 10/26/98 974 10/27/98 1,023 10/28/98 1,070 10/29/98 1,075 10/30/98 1,023 11/2/98 936 11/3/98 929 11/4/98 907 11/5/98 841 11/9/98 867 11/10/98 908 11/11/98 908 11/12/98 942 11/13/98 938 11/16/98 899 11/17/98 872 11/18/98 883 11/19/98 849 11/20/98 825 11/23/98 825 11/24/98 842 11/25/98 846 11/27/98 828 11/30/98 861 12/1/98 886 12/2/98 921 12/3/98 1008 12/4/98 1013 12/7/98 984 12/8/98 977 12/9/98 982 12/10/98 1,004 12/11/98 1026 12/14/98 1,094 12/15/98 1036 12/16/98 1064 12/17/98 1081 12/18/98 1081 12/21/98 1030 12/22/98 1,017 12/23/98 1,019 12/24/98 1,019 12/28/98 1,042 12/29/98 1,032 12/30/98 1,037 12/31/98 1,036 1/4/99 994 1/5/99 953 1/6/99 1,001 1/7/99 1,034 1/8/99 1,064 1/11/99 1,103 1/12/99 1,184 1/13/99 1,368 1/14/99 1,429 1/15/99 1,123 1/19/99 1,059 1/20/99 1,049 1/21/99 1,187 1/22/99 1,279 1/25/99 1,315 1/26/99 1,194 1/27/99 1,245 1/28/99 1,177 1/29/99 1,177 2/1/99 1,078 2/2/99 1,056 2/3/99 1,048 2/4/99 1,059 2/5/99 1,062 2/8/99 1,062 2/9/99 1,077 2/10/99 1,064 2/11/99 1,040 2/12/99 1,027 2/16/99 971 2/17/99 973 2/18/99 965 2/19/99 976 2/22/99 980 2/23/99 1,007 2/24/99 999 2/25/99 1,050 2/26/99 1,047 3/1/99 1,045 3/2/99 1,115 3/3/99 1,146 3/4/99 1,090 3/5/99 1,033 3/8/99 1,029 3/9/99 1,011 3/10/99 985 3/11/99 985 3/12/99 989 3/15/99 950 3/16/99 954 3/17/99 958 3/18/99 933 3/19/99 933 3/22/99 927 3/23/99 941 3/24/99 957 3/25/99 919 3/26/99 913 3/29/99 873 3/30/99 869 3/31/99 4/1/99 VENEZUELA 9.25% [GRAPH] In the printed version of the document, a line graph appears which depicts the following plot points: Date Spread 8/25/97 337 8/26/97 349 8/27/97 351 8/28/97 342 8/29/97 342 9/2/97 344 9/3/97 345 9/4/97 346 9/5/97 346 9/8/97 349 9/9/97 345 9/10/97 347 9/11/97 347 9/12/97 343 9/15/97 344 9/16/97 337 9/17/97 334 9/18/97 333 9/19/97 332 9/22/97 330 9/23/97 340 9/24/97 343 9/25/97 341 9/26/97 339 9/29/97 342 9/30/97 343 10/1/97 342 10/2/97 341 10/3/97 333 10/6/97 338 10/7/97 371 10/8/97 403 10/9/97 592 10/10/97 592 10/14/97 552 10/15/97 549 10/16/97 499 10/17/97 460 10/20/97 414 10/21/97 457 10/22/97 478 10/23/97 514 10/24/97 529 10/27/97 548 10/28/97 567 10/29/97 528 10/30/97 528 10/31/97 505 11/3/97 514 11/4/97 482 11/5/97 478 11/6/97 451 11/7/97 484 11/10/97 475 11/12/97 475 11/13/97 469 11/14/97 462 11/17/97 450 11/18/97 439 11/20/97 439 11/21/97 435 11/24/97 421 11/25/97 427 11/26/97 441 12/1/97 475 12/2/97 495 12/3/97 512 12/4/97 478 12/5/97 479 12/8/97 486 12/9/97 497 12/10/97 509 12/11/97 509 12/12/97 509 12/15/97 500 12/16/97 490 12/17/97 481 12/18/97 452 12/19/97 449 12/22/97 449 12/23/97 449 12/24/97 449 12/26/97 470 12/29/97 497 12/30/97 473 12/31/97 514 1/2/98 531 1/5/98 537 1/6/98 534 1/7/98 539 1/8/98 554 1/9/98 530 1/12/98 530 1/13/98 531 1/14/98 531 1/15/98 531 1/16/98 531 1/20/98 519 1/21/98 511 1/22/98 512 1/23/98 500 1/26/98 486 1/27/98 480 1/28/98 484 1/29/98 476 1/30/98 470 2/2/98 454 2/3/98 458 2/4/98 457 2/5/98 455 2/6/98 472 2/9/98 473 2/10/98 476 2/11/98 478 2/12/98 477 2/13/98 473 2/17/98 473 2/18/98 477 2/19/98 478 2/20/98 468 2/23/98 459 2/24/98 459 2/25/98 451 2/26/98 444 2/27/98 450 3/2/98 458 3/3/98 453 3/4/98 456 3/5/98 452 3/6/98 455 3/9/98 453 3/10/98 450 3/11/98 452 3/12/98 458 3/13/98 445 3/16/98 444 3/17/98 441 3/18/98 417 3/19/98 432 3/20/98 430 3/23/98 426 3/24/98 418 3/25/98 425 3/27/98 435 3/30/98 441 3/31/98 452 4/1/98 474 4/2/98 467 4/3/98 458 4/6/98 455 4/7/98 452 4/8/98 449 4/9/98 446 4/13/98 454 4/14/98 466 4/15/98 471 4/16/98 469 4/17/98 467 4/20/98 461 4/21/98 461 4/22/98 461 4/23/98 466 4/24/98 474 4/27/98 472 4/28/98 470 4/29/98 463 4/30/98 462 5/1/98 461 5/4/98 470 5/5/98 481 5/6/98 477 5/7/98 481 5/8/98 485 5/11/98 496 5/12/98 490 5/13/98 486 5/14/98 482 5/15/98 514 5/18/98 516 5/19/98 514 5/20/98 509 5/21/98 513 5/22/98 524 5/26/98 535 5/27/98 540 5/28/98 530 5/29/98 532 6/1/98 540 6/2/98 520 6/3/98 518 6/4/98 513 6/5/98 510 6/8/98 515 6/9/98 525 6/10/98 537 6/11/98 564 6/12/98 567 6/15/98 600 6/16/98 586 6/17/98 559 6/18/98 593 6/19/98 594 6/22/98 596 6/23/98 587 6/24/98 597 6/25/98 611 6/26/98 642 6/29/98 641 6/30/98 656 7/1/98 658 7/2/98 680 7/6/98 743 7/7/98 746 7/8/98 747 7/9/98 768 7/10/98 750 7/13/98 746 7/14/98 711 7/15/98 702 7/16/98 674 7/17/98 667 7/20/98 662 7/21/98 675 7/22/98 692 7/23/98 728 7/24/98 744 7/27/98 770 7/28/98 788 7/29/98 806 7/30/98 810 7/31/98 809 8/3/98 823 8/4/98 851 8/5/98 858 8/6/98 886 8/7/98 1020 8/10/98 1176 8/11/98 1134 8/12/98 1187 8/13/98 1010 8/14/98 1027 8/17/98 1133 8/18/98 1110 8/19/98 1323 8/20/98 1509 8/21/98 1491 8/24/98 1425 8/25/98 1393 8/26/98 1479 8/27/98 2051 8/28/98 1712 8/31/98 1792 9/1/98 1547 9/2/98 1734 9/3/98 1833 9/4/98 1813 9/8/98 1699 9/9/98 1686 9/10/98 1840 9/11/98 1777 9/14/98 1734 9/15/98 1641 9/16/98 1452 9/17/98 1575 9/18/98 1498 9/21/98 1457 9/22/98 1397 9/23/98 1222 9/24/98 1280 9/25/98 1216 9/28/98 1171 9/29/98 1159 9/30/98 1223 10/1/98 1207 10/2/98 1129 10/5/98 1190 10/6/98 1151 10/7/98 1114 10/8/98 1020 10/9/98 971 10/13/98 977 10/14/98 984 10/15/98 951 10/16/98 997 10/19/98 982 10/20/98 953 10/21/98 1002 10/22/98 1,034 10/23/98 1,038 10/26/98 1,061 10/27/98 1,066 10/28/98 1,106 10/29/98 1,097 10/30/98 1,066 11/2/98 986 11/3/98 989 11/4/98 972 11/5/98 946 11/9/98 1027 11/10/98 1058 11/11/98 1058 11/12/98 1159 11/13/98 1,162 11/16/98 1122 11/17/98 1,096 11/18/98 1,111 11/19/98 1071 11/20/98 1065 11/23/98 1065 11/24/98 1091 11/25/98 1191 11/27/98 1133 11/30/98 1,212 12/1/98 1470 12/2/98 1170 12/3/98 1196 12/4/98 1175 12/7/98 1,155 12/8/98 1,083 12/9/98 1,119 12/10/98 1,170 12/11/98 1177 12/14/98 1,196 12/15/98 1147 12/16/98 1152 12/17/98 1144 12/18/98 1144 12/21/98 1148 12/22/98 1,122 12/23/98 1,101 12/24/98 1,101 12/28/98 1,126 12/29/98 1,103 12/30/98 1,108 12/31/98 1,107 1/4/99 1,009 1/5/99 984 1/6/99 970 1/7/99 1,038 1/8/99 1,017 1/11/99 1,051 1/12/99 1,100 1/13/99 1,273 1/14/99 1,324 1/15/99 1,112 1/19/99 1,210 1/20/99 1,176 1/21/99 1,181 1/22/99 1,217 1/25/99 1,206 1/26/99 1,153 1/27/99 1,168 1/28/99 1,113 1/29/99 1,106 2/1/99 1,108 2/2/99 1,114 2/3/99 1,111 2/4/99 1,111 2/5/99 1,145 2/8/99 1,145 2/9/99 1,104 2/10/99 1,070 2/11/99 1,100 2/12/99 1,112 2/16/99 1,108 2/17/99 1,149 2/18/99 1,151 2/19/99 1,114 2/22/99 1,145 2/23/99 1,117 2/24/99 1121 2/25/99 1,097 2/26/99 1,090 3/1/99 1,100 3/2/99 1,127 3/3/99 1,151 3/4/99 1,141 3/5/99 1,156 3/8/99 1,183 3/9/99 1,188 3/10/99 1,128 3/11/99 1,085 3/12/99 1,075 3/15/99 1,068 3/16/99 1,086 3/17/99 1,095 3/18/99 1,090 3/19/99 1,087 3/22/99 1,087 3/23/99 1,106 3/24/99 1,099 3/25/99 1,098 3/26/99 1,097 3/29/99 1,045 3/30/99 1,014 3/31/99 4/1/99
Source: Deutsche Bank Research 18 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. PORTFOLIO SUMMARY AS OF 3/30/99
COUNTRY % OF MSCI INDEX % EQUITIES % DEBT % PRIVATE PLACEMENT % CASH Argentina 12.6 4.9 9.1 3.6 0.0 Brazil 29.4 16.9 5.9 0.0 0.1 Chile 13.6 7.4 0.0 0.0 0.0 Colombia 1.7 0.0 2.2 0.0 0.0 Costa Rica 0.0 0.0 0.4 0.0 0.0 Equador 0.0 0.0 1.3 0.0 0.0 Latin America 0.0 0.0 0.0 4.4 0.0 Mexico 37.8 16.8 7.4 0.0 0.0 Panama 0.0 0.0 1.4 0.0 0.0 Peru 2.7 1.7 1.6 0.6 0.0 Venezuela 2.2 0.0 6.1 0.3 0.0 United States 0.0 0.0 0.0 0.5 7.5 ---- ---- ---- ---- ---- TOTAL 100.0 47.7 35.4 9.4 7.6
19 - -------------------------------------------------------------------------------- THE LATIN AMERICA INVESTMENT FUND, INC. POLICY AND MARKET OUTLOOK - - At this point, Latin America's capital markets' prospects rest largely on events in Brazil; forced debt rescheduling and/or capital controls could destabilize the region for some time - - Growth will slow and is unlikely to recover for some time; savings need to be generated to finance fiscal and external balances - - Despite all the bad news, at least the latest Brazilian crisis has had limited contagion effects (so far) - - Leverage in the system is low, and valuations are very low - - Maintain high exposure to bonds to differentiate and offer a balanced Fund - - High yields on sovereign debt look compelling and will likely lead any equity market rally 20 -----END PRIVACY-ENHANCED MESSAGE-----