<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-6094
-------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Hal Liebes, Esq.
The Latin America Equity Fund, Inc.
466 Lexington Avenue
New York, New York 10017-3147
------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 875-3500
-------------------
Date of fiscal year end: December 31, 2003
--------------------------
Date of reporting period: January 1 to June 30, 2003
--------------------------------
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
THE LATIN AMERICA
EQUITY FUND, INC.
SEMI-ANNUAL REPORT
JUNE 30, 2003
[LAQ LISTED NYSE(R) LOGO]
3019-SA-03
<Page>
CONTENTS
<Table>
Letter to Shareholders 1
Portfolio Summary 4
Schedule of Investments 6
Statement of Assets and Liabilities 9
Statement of Operations 10
Statement of Changes in Net Assets 11
Financial Highlights 12
Notes to Financial Statements 14
Results of Annual Meeting of Shareholders 20
Privacy Policy Notice 21
</Table>
<Page>
LETTER TO SHAREHOLDERS
August 1, 2003
DEAR SHAREHOLDER:
We are writing to report on the activities of The Latin America Equity Fund,
Inc. (the "Fund") for the six months ended June 30, 2003.
At June 30, 2003, the Fund's net assets were $86.3 million. The Fund's net asset
value ("NAV") was $13.65 per share, as compared with $11.55 on December 31,
2002.
PERFORMANCE
For the six months ended June 30, 2003, the Fund's total return, based on NAV,
was 18.18%, compared with an increase of 24.23% for the Morgan Stanley Capital
International EMF (Emerging Markets Free) Latin America Index.* We attribute the
Fund's underperformance of its benchmark largely to its private equity holdings,
which were negatively revalued (based on the underlying issuers' book values) in
the period. In addition, we were underweighted in Argentina, which had a strong
rally yet which was mostly unattractive in our view from a risk/reward
perspective. On the positive side, factors that aided the Fund included good
stock selection in Mexico.
MARKET REVIEW
The period was a positive one for Latin America's equity markets. Stocks
struggled in January and February, but market conditions improved due to global
as well as local catalysts. Globally, investors' appetite for risk returned in
the wake of the swift and seemingly successful end to the Iraq war. With a major
market overhang removed, asset classes offering higher short-term risk and
potentially higher long-term rewards were favored; emerging markets outperformed
developed markets in this environment.
Within Latin America, Brazil was a solid performer, aided by optimism regarding
its reform goals and by a supportive interest-rate backdrop. For dollar-based
investors, returns were greatly improved by the appreciation of Brazil's
currency vs. the dollar in the period.
On the reform front, Lula da Silva, who took office as Brazil's president in
January, has signaled an intent to rein in fiscal profligacy. Lula appears
committed to running a budget surplus of more than 4% of the country's Gross
Domestic Product (excluding payments on Brazil's debt, which remains at a level
equal to about 60% of GDP). Investors have been encouraged by his proposals thus
far, notwithstanding the inevitable political opposition he faces.
Regarding monetary policy, Brazil's central bank reduced its benchmark
short-term interest rate by 50 basis points in June, to 26%. This was the first
rate reduction since last summer, and while the Bank has declared a neutral
stance on interest-rate bias for now, the market seemed to view June's move as
the start of a longer-term downward trend.
1
<Page>
Mexico underperformed Brazil in the period in dollar terms (but outperformed
Brazil in local-currency terms, as did the region's other stock markets).
Factors that supported market sentiment included an encouraging inflation and
interest-rate backdrop. Short-term bond yields fell in the period, and the
inflation data has been more benign than expected. And because Mexico stands to
be a prime beneficiary of any U.S. economic recovery, it rose in part on
optimism that U.S. growth might improve later this year.
Elsewhere, the region's smaller markets all rose in the environment of lowered
risk thresholds. One noteworthy catalyst in Chile was its June signing of a free
trade agreement with the United States. If, as expected, ratification of this
agreement by both countries occurs in this year's second half, Chile will begin
to trade freely with the United States early in 2004.
OUTLOOK AND STRATEGY
We ended the period with significant exposure to both Mexico and Brazil,
although we lowered our weighting in the latter market in June. We sold some
Brazilian telecom stocks that reached our price targets, and we reduced our
exposure to the country's banks based on our view that bank earnings are now at
or near a peak. We had increased our exposure to Brazil's banks at the beginning
of the year, as part of our general shift toward a less-defensive strategy.
On the buy side in Brazil, we increased our exposure to certain construction and
consumer companies that we think will benefit from a downward trend in interest
rates over the next 12-18 months. We believe that the central bank's June rate
cut finally marks the start of an easing cycle.
Elsewhere of note, we increased our exposure to Mexican cement and construction
companies that we deemed to be attractively valued, and we trimmed our weighting
in Chile. We held minor positions in certain of the region's smaller markets on
a highly stock-specific basis.
While profit-taking could restrain markets in the near term, and while
geopolitical issues could return to hamper riskier asset classes, we see grounds
for optimism regarding Latin America's investment climate over the next 18
months. Even in the wake of the recent market rally, valuations are mostly
reasonable in our view, especially compared with valuations on developed market
stocks. In addition, capital flows have been supportive of the region's markets,
and we believe the trend can continue. We also view the good performance of
"second tier" Latin American stocks in the period as a vote of confidence in the
area's prospects.
In this environment, we intend to continue to focus on Brazil and Mexico.
Brazil, as noted, is undertaking some ambitious reform efforts, and there
remains the threat of negative disappointments on this front. Still, Lula
appears to have broad popular support, and over time we expect some
market-helpful reforms to gain traction. Brazil could also benefit from
2
<Page>
the potential for lower interest rates. With respect to Mexico, we do not see
many positive catalysts over the intermediate term, but if and when the U.S.
economy accelerates, Mexico stands to benefit the most among the region's
economies.
Respectfully,
/s/ Emily Alejos
Emily Alejos
Chief Investment Officer **
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS; THESE RISKS ARE GENERALLY HEIGHTENED FOR EMERGING-MARKET
INVESTMENTS.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
- ----------
* The Morgan Stanley Capital International EMF (Emerging Markets Free) Latin
America Index is a free float-adjusted market capitalization index that is
designed to measure equity-market performance in Latin America. It is the
exclusive property of Morgan Stanley Capital International Inc. Investors cannot
invest directly in an index.
** 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 the Chief Investment Officer of the Fund and The
Brazilian Equity Fund, Inc. She is also an Investment Officer of The Chile Fund,
Inc. and The Emerging Markets Telecommunications Fund, Inc.
3
<Page>
THE LATIN AMERICA EQUITY FUND, INC.
PORTFOLIO SUMMARY - AS OF JUNE 30, 2003 (UNAUDITED)
[CHART]
GEOGRAPHIC ASSET BREAKDOWN
AS A PERCENT OF NET ASSETS
<Table>
<Caption>
30-JUN-03 31-DEC-02
Brazil 39.70% 35.44%
Chile 7.57% 9.85%
Jamaica 3.24% 6.01%
Latin America 1.56% 1.59%
Mexico 43.14% 43.98%
Peru 0.97% 2.05%
Venezuela 0.54% 1.13%
Global 1.60% 1.90%
Other 1.68% -1.95%
</Table>
[CHART]
SECTOR ALLOCATION
AS A PERCENT OF NET ASSETS
<Table>
<Caption>
30-JUN-03 31-DEC-02
Banking 5.56% 2.21%
Bottling 5.37% 4.04%
Cellular Telecommunications 7.56% 6.55%
Cement 3.24% 6.50%
Diversified Operations 4.44% 3.79%
Financial Services 4.12% 4.73%
Food & Beverages 4.80% 2.82%
Investment & Holding Companies 3.24% 6.01%
Mining 5.46% 10.50%
Oil & Natural Gas 10.60% 10.86%
Retail-Major Department Stores 6.23% 5.91%
Telephone-Integrated 19.41% 21.39%
Other 19.97% 14.69%
</Table>
4
<Page>
TOP 10 HOLDINGS, BY ISSUER
<Table>
<Caption>
PERCENT OF
HOLDING SECTOR COUNTRY NET ASSETS
- ------------------------------------------------------------------------------------------------------
1. Telefonos de Mexico, S.A. de C.V. Telephone-Integrated Mexico 11.5
2. Petroleo Brasileiro S.A. Oil & Natural Gas Brazil 10.6
3. America Movil, S.A. de C.V. Cellular Telecommunications Mexico 7.6
4. Wal-Mart de Mexico, S.A. de C.V. Retail-Major Department Stores Mexico 5.8
5. Companhia de Bebidas das Americas Bottling Brazil 5.4
6. Companhia Vale do Rio Doce Mining Brazil 4.5
7. Tele Norte Leste Participacoes S.A. Telephone-Integrated Brazil 3.8
8. Fomento Economico Mexicano, S.A. de C.V. Food & Beverages Mexico 3.3
9. Jamaican Assets I, L.P. Investment & Holding Companies Jamaica 3.2
10. Banco Itau Holding Financeira S.A. Banking Brazil 2.9
</Table>
5
<Page>
THE LATIN AMERICA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS - JUNE 30, 2003 (UNAUDITED)
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
EQUITY OR EQUITY-LINKED SECURITIES-98.32%
BRAZIL-39.71%
AEROSPACE/DEFENSE-EQUIPMENT-2.67%
Empresa Brasileira de
Aeronautica S.A., ADR 120,722 $ 2,305,790
------------
BANKING-4.66%
Banco Bradesco S.A., PN 415,900,000 1,555,446
Banco Itau Holding
Financeira S.A., PN 36,960,000 2,461,244
------------
4,016,690
------------
BOTTLING-5.37%
Companhia de Bebidas das
Americas, PN, ADR 227,800 4,635,730
------------
ELECTRIC-INTEGRATED-0.71%
Companhia Energetica de
Minas Gerais, ADR 66,400 612,872
------------
FOOD-RETAIL-1.93%
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar, ADR 108,600 1,665,924
------------
MINING-4.49%
Companhia Vale do Rio
Doce, ADR 139,700 3,876,675
------------
OIL & NATURAL GAS-10.60%
Petroleo Brasileiro S.A., ADR 515,100 9,148,176
------------
PAPER & RELATED PRODUCTS-1.63%
Aracruz Celulose S.A., ADR 41,300 869,778
Votorantim Celulose e Papel
S.A., ADR 27,600 533,784
------------
1,403,562
------------
TELEPHONE-INTEGRATED-5.78%
Brasil Telecom Participacoes
S.A., ADR 46,400 1,737,680
Tele Norte Leste Participacoes
S.A., ADR 278,600 $ 3,254,048
------------
4,991,728
------------
TOBACCO-1.87%
Souza Cruz S.A., ON 195,300 1,611,003
------------
TOTAL BRAZIL
(Cost $30,180,829) 34,268,150
------------
CHILE-7.57%
BANKING-0.91%
Banco de Chile 6,300,000 207,966
Banco Santander Chile S.A. 29,273,000 577,687
------------
785,653
------------
CHEMICALS-DIVERSIFIED-0.61%
Sociedad Quimica y Minera
de Chile S.A., Class B 185,000 524,426
------------
CONTAINERS-METAL/GLASS-0.22%
Cristalerias de Chile S.A. 22,603 192,048
------------
DIVERSIFIED OPERATIONS-1.46%
Compania de Petroleos
de Chile S.A. 240,000 1,257,266
------------
ELECTRIC-INTEGRATED-1.28%
Colbun S.A. 4,250,000 344,575
Enersis S.A.+ 2,500,000 218,156
Enersis S.A., ADR+ 123,000 542,430
------------
1,105,161
------------
FOOD & BEVERAGES-0.49%
Embotelladora Andina
S.A., PNA 47,000 60,710
Vina Concha y Toro S.A. 404,311 359,774
------------
420,484
------------
PAPER & RELATED PRODUCTS-0.64%
Empresas CMPC S.A. 50,000 552,565
------------
</Table>
See accompanying notes to financial statements.
6
<Page>
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES/UNITS VALUE
- --------------------------------------------------------------------------------
RETAIL-MAJOR DEPARTMENT STORES-0.39%
S.A.C.I. Falabella, S.A. 310,000 $ 338,052
------------
TELEPHONE-INTEGRATED-1.57%
Compania de Telecomunicaciones
de Chile S.A., ADR+ 76,800 906,240
Compania de Telecomunicaciones
de Chile S.A., Class A+ 98,000 290,519
Empresa Nacional de
Telecomunicaciones S.A. 30,000 154,790
------------
1,351,549
------------
TOTAL CHILE
(Cost $5,329,878) 6,527,204
------------
JAMAICA-3.24%
INVESTMENT & HOLDING COMPANIES-3.24%
Jamaican Assets I, L.P.++
(Cost $1,484,581) 900,664 2,799,001
------------
LATIN AMERICA-1.56%
DIVERSIFIED OPERATIONS-1.56%
J.P. Morgan Latin America Capital
Partners (Cayman), L.P.++ 807,719 703,572
J.P. Morgan Latin America Capital
Partners (Delaware), L.P.++# 1,363,091 641,702
------------
1,345,274
------------
TELECOMMUNICATIONS-0.00%
International Wireless
Communications Holdings
Corp.+++ 12,636 0
------------
TOTAL LATIN AMERICA
(Cost $2,026,887) 1,345,274
------------
MEXICO-43.13%
AIRPORT DEVELOPMENT/MAINTENANCE-0.68%
Grupo Aeroportuario del Sureste,
S.A. de C.V., ADR 40,000 585,200
------------
BROADCAST, RADIO & TELEVISION-3.88%
Grupo Televisa, S.A., ADR 70,700 2,439,150
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
TV Azteca, S.A. de C.V., ADR 140,200 $ 911,300
------------
3,350,450
------------
CELLULAR TELECOMMUNICATIONS-7.56%
America Movil, S.A. de C.V.,
Series L, ADR 347,800 6,521,250
------------
CEMENT-3.23%
Apasco S.A. de C.V.,
Nominative Shares 247,200 1,911,182
Cemex, S.A. de C.V., ADR 39,500 880,455
------------
2,791,637
------------
DIVERSIFIED OPERATIONS-1.42%
Alfa, S.A., Series A 609,700 1,222,200
------------
FINANCIAL SERVICES-4.12%
Grupo Financiero Banorte S.A.
de C.V., Series O 482,400 1,361,669
Grupo Financiero BBVA Bancomer,
S.A. de C.V., Class B+ 2,596,770 2,193,999
------------
3,555,668
------------
FOOD & BEVERAGES-4.31%
Fomento Economico Mexicano,
S.A. de C.V., ADR 68,600 2,826,320
Grupo Modelo, S.A. de C.V.,
Series C 391,022 890,472
------------
3,716,792
------------
REAL ESTATE DEVELOPMENT-0.57%
Consorcio ARA, S.A. de C.V.+ 246,800 490,011
------------
RETAIL-MAJOR DEPARTMENT STORES-5.84%
Wal-Mart de Mexico, S.A.
de C.V., V Shares, ADR 170,506 5,039,595
------------
TELEPHONE-INTEGRATED-11.52%
Telefonos de Mexico, S.A. de C.V.,
Class L, ADR 316,400 9,941,288
------------
TOTAL MEXICO
(Cost $34,239,426) 37,214,091
------------
</Table>
See accompanying notes to financial statements.
7
<Page>
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES/UNITS VALUE
- --------------------------------------------------------------------------------
PERU-0.97%
MINING-0.97%
Compania de Minas Buenaventura
S.A.u., ADR (Cost $610,715) 27,733 $ 834,486
------------
VENEZUELA-0.54%
TELEPHONE-INTEGRATED-0.54%
Compania Anonima Nacional
Telefonos de Venezuela,
ADR (Cost $454,266) 37,500 468,375
------------
GLOBAL-1.60%
VENTURE CAPITAL-1.60%
Emerging Markets Ventures I
L.P.+++# (Cost $2,032,623) 2,172,510 1,379,218
------------
TOTAL EQUITY OR EQUITY-LINKED
SECURITIES (Cost $76,359,205) 84,835,799
------------
WARRANTS-0.00%
VENEZUELA-0.00%
Venezuela Oil Obligations,
Warrants+ (Cost $0) 1,785 446
------------
<Caption>
PRINCIPAL
DESCRIPTION AMOUNT (000'S) VALUE
- --------------------------------------------------------------------------------
SHORT TERM INVESTMENT-1.71%
GRAND CAYMAN-1.71%
Brown Brothers Harriman & Co.,
overnight deposit, 0.36%,
07/01/03** (Cost $1,480,000) $ 1,480 $ 1,480,000
------------
TOTAL INVESTMENTS-100.03%
(Cost $77,839,205) (Notes A,D,F) 86,316,245
------------
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS-(0.03)% (29,249)
------------
NET ASSETS-100.00% $ 86,286,996
============
</Table>
- ----------
+ Security is non-income producing.
++ Restricted security, not readily marketable; security is valued at fair
value as determined in good faith by the Board of Directors. (See Notes A
and G.)
# As of June 30, 2003, the Fund has committed to investing additional capital
as follows: J.P. Morgan Latin America Capital Partners (Delaware), L.P.
($3,789,370) and Emerging Markets Ventures I L.P. ($327,490). The aggregate
amount of open commitments for the Fund is $4,116,860.
** Variable rate account. Rate resets on a daily basis; amounts are available
on the same business day.
ADR American Depositary Receipts.
ON Ordinary Shares.
PN Preferred Shares.
PNA Preferred Shares, Class A.
See accompanying notes to financial statements.
8
<Page>
THE LATIN AMERICA EQUITY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - JUNE 30, 2003 (UNAUDITED)
<Table>
ASSETS
Investments, at value (Cost $77,839,205) (Notes A,D,F) $ 86,316,245
Cash (including $11,806 of foreign currencies with a cost of $11,421) 101,651
Dividends receivable 154,286
Prepaid expenses 19,326
-------------
Total Assets 86,591,508
-------------
LIABILITIES
Payables:
Investment advisory fee (Note B) 170,670
Administration fees (Note B) 28,924
Directors' fees 24,158
Investments purchased 2,499
Other accrued expenses 78,261
-------------
Total Liabilities 304,512
-------------
NET ASSETS (applicable to 6,322,240 shares of common stock outstanding) (Note C) $ 86,286,996
=============
NET ASSETS CONSIST OF
Capital stock, $0.001 par value; 6,322,240 shares issued and outstanding
(100,000,000 shares authorized) $ 6,322
Paid-in capital 140,608,217
Distributions in excess of net investment income (253,872)
Accumulated net realized loss on investments and foreign currency related transactions (62,548,658)
Net unrealized appreciation in value of investments and translation of other
assets and liabilities denominated in foreign currencies 8,474,987
-------------
Net assets applicable to shares outstanding $ 86,286,996
=============
NET ASSET VALUE PER SHARE ($86,286,996 DIVIDED BY 6,322,240) $ 13.65
=============
MARKET PRICE PER SHARE $ 11.45
=============
</Table>
See accompanying notes to financial statements.
9
<Page>
THE LATIN AMERICA EQUITY FUND, INC.
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income (Note A):
Dividends $ 1,335,477
Net investment income allocated from partnerships 303,537
Interest 2,776
Less: Foreign taxes withheld (42,574)
-------------
Total Investment Income 1,599,216
-------------
Expenses:
Investment advisory fees (Note B) 318,380
Administration fees (Note B) 72,126
Legal fees 58,902
Audit fees 33,037
Printing (Note B) 26,253
Custodian fees 24,842
Directors' fees 21,747
Accounting fees 17,333
Transfer agent fees 14,016
NYSE listing fees 7,106
Insurance 5,526
Miscellaneous 6,513
Brazilian taxes (Note A) 257
Chilean repatriation taxes (Note A) (110,958)
-------------
Total Expenses 495,080
-------------
Net Investment Income 1,104,136
-------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY RELATED TRANSACTIONS
Net realized loss from:
Investments (1,545,180)
Foreign currency related transactions (44,245)
Net change in unrealized depreciation in value of investments and translation
of other assets and liabilities denominated in foreign currencies 13,726,840
-------------
Net realized and unrealized gain on investments and foreign currency related
transactions 12,137,415
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 13,241,551
=============
</Table>
See accompanying notes to financial statements.
10
<Page>
THE LATIN AMERICA EQUITY FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE SIX MONTHS FOR THE YEAR
ENDED JUNE 30, 2003 ENDED
(UNAUDITED) DECEMBER 31, 2002
------------------- ------------------
INCREASE/(DECREASE) IN NET ASSETS
Operations:
Net investment income $ 1,104,136 $ 210,693
Net realized loss on investments and foreign currency related transactions (1,589,425) (16,468,305)
Net change in unrealized appreciation/(depreciation) in value of
investments and translation of other assets and liabilities denominated
in foreign currencies 13,726,840 (9,317,510)
------------------- ------------------
Net increase/(decrease) in net assets resulting from operations 13,241,551 (25,575,122)
------------------- ------------------
Dividends to shareholders:
Net investment income -- (1,327,670)
------------------- ------------------
Capital share transactions (Note H):
Cost of 1,115,689 shares purchased under tender offer -- (12,060,598)
------------------- ------------------
Total increase/(decrease) in net assets 13,241,551 (38,963,390)
------------------- ------------------
NET ASSETS
Beginning of period 73,045,445 112,008,835
------------------- ------------------
End of period $ 86,286,996 $ 73,045,445
=================== ==================
</Table>
See accompanying notes to financial statements.
11
<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, 2003 --------------------------------
(UNAUDITED) 2002 2001
------------- ------------ ------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 11.55 $ 15.06 $ 16.60
------------- ------------ ------------
Net investment income/(loss) 0.18 0.01** 0.41*
Net realized and unrealized gain/(loss) on investments
and foreign currency related transactions 1.92 (3.41) (1.50)
------------- ------------ ------------
Net increase/(decrease) in net assets resulting from operations 2.10 (3.40) (1.09)
------------- ------------ ------------
Dividends and distributions to shareholders:
Net investment income -- (0.21) (0.57)
Net realized gain on investments and
foreign currency related transactions -- -- --
------------- ------------ ------------
Total dividends and distributions to shareholders -- (0.21) (0.57)
------------- ------------ ------------
Anti-dilutive impact due to capital shares tendered or repurchased -- 0.10 0.12
------------- ------------ ------------
Effect of reduction of accrued offering costs -- -- --
------------- ------------ ------------
Dilutive impact due to capital share rights offering -- -- --
------------- ------------ ------------
Net asset value, end of period $ 13.65 $ 11.55 $ 15.06
============= ============ ============
Market value, end of period $ 11.45 $ 9.67 $ 12.15
============= ============ ============
Total investment return (a) 18.41% (18.83)% (1.07)%
============= ============ ============
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 86,287 $ 73,045 $ 112,009
Ratio of expenses to average net assets (b) 1.30(c) 3.06% 1.51%
Ratio of expenses to average net assets, excluding fee waivers 1.30(c) 3.06% 1.51%
Ratio of expenses to average net assets, excluding taxes 1.59%(c) 1.52% 1.40%
Ratio of net investment income/(loss) to average net assets 2.90%(c)(d) 0.21% 2.52%
Portfolio turnover rate 32.15% 75.28% 101.73%
</Table>
^ Per share amounts prior to November 10, 2000 have been restated to reflect a
conversion factor of 0.9175 for shares issued in connection with the merger
of The Latin America Investment Fund, Inc. and The Latin America Equity Fund,
Inc.
* Based on actual shares outstanding on November 21, 2001 (prior to the 2001
tender offer) and December 31, 2001.
** Based on actual shares outstanding on November 6, 2002 (prior to the 2002
tender offer) and December 31, 2002.
+ 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.
See accompanying notes to financial statements.
12
<Page>
<Table>
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------
2000 1999 1998 1997
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 18.57 $ 10.96 $ 18.77 $ 18.41
--------- --------- --------- ---------
Net investment income/(loss) (0.11)+ 0.07+ 0.16 0.16
Net realized and unrealized gain/(loss) on investments
and foreign currency related transactions (2.44) 7.07 (7.85)++ 2.01
--------- --------- --------- ---------
Net increase/(decrease) in net assets resulting from operations (2.55) 7.14 (7.69) 2.17
--------- --------- --------- ---------
Dividends and distributions to shareholders:
Net investment income (0.08) -- (0.12) (0.17)
Net realized gain on investments and
foreign currency related transactions -- -- -- (1.64)
--------- --------- --------- ---------
Total dividends and distributions to shareholders (0.08) -- (0.12) (1.81)
--------- --------- --------- ---------
Anti-dilutive impact due to capital shares tendered or repurchased 0.66 0.47 -- --
--------- --------- --------- ---------
Effect of reduction of accrued offering costs -- -- -- --
--------- --------- --------- ---------
Dilutive impact due to capital share rights offering -- -- -- --
--------- --------- --------- ---------
Net asset value, end of period $ 16.60 $ 18.57 $ 10.96 $ 18.77
========= ========= ========= =========
Market value, end of period $ 12.875 $ 13.760 $ 7.834 $ 14.918
========= ========= ========= =========
Total investment return (a) (5.87)% 75.65% (46.63)% 10.29%
========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 145,281 $ 123,262 $ 86,676 $ 148,130
Ratio of expenses to average net assets (b) 2.13% 2.14% 2.41% 1.89%
Ratio of expenses to average net assets, excluding fee waivers 2.19% 2.22% 2.60% 2.02%
Ratio of expenses to average net assets, excluding taxes 2.03% 2.05% 1.77% 1.65%
Ratio of net investment income/(loss) to average net assets (0.55)% 0.46% 1.12% 0.77%
Portfolio turnover rate 125.83% 161.71% 142.35% 111.83%
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------
1996 1995 1994 1993
--------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 16.27 $ 19.53 $ 24.52 $ 15.66
--------- --------- --------- ---------
Net investment income/(loss) 0.21 0.07 0.01+ 0.12+
Net realized and unrealized gain/(loss) on investments
and foreign currency related transactions 2.00 (3.07) 1.05 9.54
--------- --------- --------- ---------
Net increase/(decrease) in net assets resulting from operations 2.21 (3.00) 1.06 9.66
--------- --------- --------- ---------
Dividends and distributions to shareholders:
Net investment income (0.07) -- (0.18) --
Net realized gain on investments and
foreign currency related transactions -- (0.26) (3.38) (0.82)
--------- --------- --------- ---------
Total dividends and distributions to shareholders (0.07) (0.26) (3.56) (0.82)
--------- --------- --------- ---------
Anti-dilutive impact due to capital shares tendered or repurchased -- -- -- --
--------- --------- --------- ---------
Effect of reduction of accrued offering costs -- -- -- 0.02
--------- --------- --------- ---------
Dilutive impact due to capital share rights offering -- -- (2.49) --
--------- --------- --------- ---------
Net asset value, end of period $ 18.41 $ 16.27 $ 19.53 $ 24.52
========= ========= ========= =========
Market value, end of period $ 15.259 $ 14.033 $ 19.210 $ 27.929
========= ========= ========= =========
Total investment return (a) 9.18% (25.65)% (17.78)% 89.35%
========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 145,230 $ 128,377 $ 153,128 $ 135,573
Ratio of expenses to average net assets (b) 1.69% 2.04% 1.94% 2.00%
Ratio of expenses to average net assets, excluding fee waivers 1.80% 2.15% -- --
Ratio of expenses to average net assets, excluding taxes -- 1.81% 1.70% --
Ratio of net investment income/(loss) to average net assets 1.16% 0.42% 0.04% 0.63%
Portfolio turnover rate 43.22% 27.05% 68.46% 49.48%
</Table>
- ----------
(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.
(b) Ratios reflect actual expenses incurred by the Fund. Amounts are net of fee
waivers and inclusive of taxes.
(c) Annualized.
(d) Ratio includes the effect of a reversal of Chilean repatriation tax accrual;
excluding the reversal, the ratio would have been 2.61%.
13
<Page>
THE LATIN AMERCIA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE A. SIGNIFICANT ACCOUNTING POLICIES
The Latin America Equity Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended, as a closed-end, non-diversified
management investment company.
USE OF ESTIMATES: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
("GAAP") requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenue and expenses during the reporting period. Actual results could differ
from those estimates.
SECURITY VALUATION: The net asset value of the Fund is determined daily as of
the close of regular trading on the New York Stock Exchange, Inc. (the
"Exchange") on each day the Exchange is open for business. The Fund's equity
investments are valued at market value, which is generally determined using the
closing price on the exchange or market on which the security is primarily
traded at the time of valuation (the "Valuation Time"). If no sales are
reported, equity investments are generally valued at the most recent bid
quotation as of the Valuation Time or at the lowest ask quotation in the case of
a short sale of securities. Debt securities with a remaining maturity greater
than 60 days are valued in accordance with the price supplied by a pricing
service, which may use a matrix, formula or other objective method that takes
into consideration market indices, yield curves and other specific adjustments.
Debt obligations that will mature in 60 days or less are valued on the basis of
amortized cost, which approximates market value, unless the Board of Directors
determines that using this method would not reflect an investment's fair value.
Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by the Board of
Directors under procedures established by the Board of Directors in the absence
of readily ascertainable market values. At June 30, 2003, the Fund held 6.40% of
its net assets in securities valued at fair value as determined in good faith by
the Board of Directors with an aggregate cost of $5,544,091 and fair value of
$5,523,493. Although these securities may be resold in privately negotiated
transactions, the prices realized on such sales could differ from the prices
originally paid by the Fund or the current carrying values, and the difference
could be material.
SHORT-TERM INVESTMENT: The Fund sweeps available cash into a short-term deposit
issued by Brown Brothers Harriman & Co., the Fund's custodian. The short-term
time deposit is a variable rate account classified as a short-term investment.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on a trade date basis. The cost of investments sold is determined
by use of the specific identification method for both financial reporting and
U.S. income tax purposes. Interest income is accrued as earned; dividend income
is recorded on the ex-dividend date.
TAXES: No provision is made for U.S. 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. income and excise taxes.
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.
14
<Page>
The Fund is subject to a 10% Chilean repatriation tax with respect to certain
remittances from Chile and on net realized gains on certain securities held in
Chilean pesos. Realized capital gains on certain liquid securities will not be
subject to the tax. Realized capital gains on illiquid securities, interest and
dividends received are subject to the remittance tax. For the six months ended
June 30, 2003, the Fund did not incur such expense.
Brazil imposes a CONTRIBUCAO PROVISORIA SOBRE MOVIMENTACAOES FINANCIERAS
("CPMF") tax that applies to foreign exchange transactions related to
fixed-income instruments carried out by financial institutions. The tax rate of
0.38% is effective until the end of 2003, and will decline to 0.08% during 2004.
For the six months ended June 30, 2003, the Fund incurred $257 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
valuation date 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 transaction balances.
The Fund reports certain foreign currency related transactions and foreign taxes
withheld on security transactions as components of realized gains for financial
reporting purposes, whereas such foreign currency related transactions are
treated as ordinary income for U.S. income tax purposes.
Net unrealized 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 or losses represent foreign exchange gains
and losses from sales and maturities of debt securities, transactions in foreign
currencies and forward foreign currency contracts, exchange gains or losses
realized between the trade date and settlement dates on security transactions,
and the difference between the amounts of interest and dividends recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received.
DISTRIBUTIONS OF INCOME AND GAINS: The Fund distributes at least annually to
shareholders substantially all of its net investment income and net realized
short-term capital gains, if any. The Fund determines annually whether to
distribute any net realized long-term capital gains in excess of net realized
short-term capital losses, including capital loss carryovers, if any. An
additional distribution may be made to the extent necessary to avoid the payment
of a 4% U.S. federal excise tax. Dividends and distributions to shareholders are
recorded by the Fund on the ex-dividend date.
15
<Page>
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.
income tax purposes due to U.S. generally accepted accounting principles/tax
differences in the character of income and expense recognition.
PARTNERSHIP ACCOUNTING POLICY: The Fund records its pro-rata share of the
income/(loss) and capital gains/(losses) allocated from the underlying
partnerships and adjusts the cost of the underlying partnerships accordingly.
These amounts are included in the Fund's Statement of Operations.
OTHER: Securities denominated in currencies other than U.S. dollars are subject
to changes in value due to fluctuations in exchange rates.
Some countries require governmental approval for the repatriation of investment
income, capital or the proceeds of sales of securities by foreign investors. In
addition, if there is a deterioration in a country's balance of payments or for
other reasons, a country may impose temporary restrictions on foreign capital
remittances abroad. Amounts repatriated prior to the end of specified periods
may be subject to taxes as imposed by a foreign country.
The Latin American securities markets are substantially smaller, less liquid and
more volatile than the major securities markets in the United States. A high
proportion of the securities of many companies in Latin American countries may
be held by a limited number of persons, which may limit the number of securities
available for investment by the Fund. The limited liquidity of Latin American
country securities markets may also affect the Fund's ability to acquire or
dispose of securities at the price and time it wishes to do so.
The Fund, subject to local investment limitations, may invest up to 10% of its
assets (at the time of commitment) in illiquid equity securities, including
securities of private equity funds (whether in corporate or partnership form)
that invest primarily in emerging markets. When investing through another
investment fund, the Fund will bear its proportionate share of the expenses
incurred by the fund, including management fees. Such securities are expected to
be illiquid 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 and this difference could be material.
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.
NOTE B. AGREEMENTS
Credit Suisse Asset Management, LLC ("CSAM"), serves as the Fund's investment
adviser, with respect to all investments. CSAM receives as compensation for its
advisory services from the Fund, an annual fee, calculated weekly and paid
quarterly, equal to 1.00% of the first $100 million of the Fund's average weekly
market value or net assets (whichever is lower), 0.90% of the next $50 million
and 0.80% of amounts over $150 million. For the six months ended June 30, 2003,
CSAM earned $318,380 for advisory services. CSAM also provides certain
administrative services to the Fund and is reimbursed by the Fund for costs
incurred on behalf of the Fund (up to $20,000 per annum). For the six months
ended June 30, 2003, CSAM was reimbursed $4,922 for administrative services
rendered to the Fund.
16
<Page>
CELFIN CAPITAL Servicios Financieros S.A. ("Celfin") serves as the Fund's
sub-adviser, with respect to Chilean investments. As compensation 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 assets
invested in Chilean securities reduced by a percentage equal to the discount at
which the Fund's shares are trading. For the six months ended June 30, 2003,
these sub-advisory fees amounted to $5,067.
For the six months ended June 30, 2003, Celfin earned approximately $2,750 in
brokerage commissions from portfolio transactions executed on behalf of the
Fund.
Bear Stearns Funds Management Inc. ("BSFM") serves as the Fund's U.S.
administrator. The Fund pays BSFM a monthly fee that is computed weekly at an
annual rate of 0.10% of the first $100 million of the Fund's average weekly net
assets and 0.08% of amounts in excess of $100 million. For the six months ended
June 30, 2003, BSFM earned $38,260 for administrative services.
Celfin Capital S.A. Administradora de Fondos de Capital Extranjero ("AFCE")
serves as the Fund's Chilean administrator. For its services, AFCE is paid an
annual fee by the Fund equal to the greater of 2,000 Unidad de Fomentos
("U.F.'s") (approximately $48,600 at June 30, 2003) or 0.10% of the Fund's
average weekly market value or net assets invested in Chile (whichever is lower)
and an annual reimbursement of out-of-pocket expenses not to exceed 500 U.F.'s.
In addition, an accounting fee is also paid to Celfin. For the six months ended
June 30, 2003, the administration fees and accounting fees amounted to $28,944
and $2,380, respectively.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the
Fund to provide certain financial printing services. For the six months ended
June 30, 2003, Merrill was paid $26,601 for its services to the Fund.
On May 8, 2000, the Fund's Board of Directors unanimously approved a proposal by
the Independent Directors to partially compensate Independent Directors in
shares of the Fund. Under this policy, such directors receive fifty percent
(50%) of their annual retainer in the form of shares purchased by the Fund's
transfer agent in the open market. Directors as a group own less than 1% of the
Fund's outstanding shares.
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 6,322,240 shares outstanding at June 30, 2003, CSAM
owned 13,746 shares.
NOTE D. INVESTMENT IN SECURITIES
For the six months ended June 30, 2003, purchases and sales of securities, other
than short-term investments, were $24,555,959 and $26,880,766, respectively.
NOTE E. CREDIT FACILITY
The Fund, together with other funds/portfolios advised by CSAM (collectively,
the "Participating Funds"), participates in a $100 million committed, unsecured
line of credit facility ("Credit Facility") with Deutsche Bank, A.G. as
administrative agent and syndication agent and State Street Bank and Trust
Company as operations agent for temporary or emergency purposes. Under the terms
of the Credit Facility, the Participating Funds pay an aggregate commitment fee
at a rate of 0.10% per annum on the average unused amount of the Credit
Facility, which is allocated among the Participating Funds in such manner as is
determined by the governing Boards of the Participating Funds. In addition, the
Participating Funds pay interest on borrowing at the Federal Funds rate plus
0.50%. During the six months ended June 30,
17
<Page>
2003, the Fund had no borrowings under the Credit Facility.
NOTE F. FEDERAL INCOME TAXES
Income and capital gains distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP. These differences are
primarily due to differing treatments of foreign currency transactions, losses
deferred due to wash sales, Post-October losses (as defined below), and excise
tax regulations.
The tax characteristic of dividends paid during the fiscal year ended December
31, 2002 for the Fund was $1,327,670 from ordinary income.
Under current tax law, certain capital losses realized after October 31 within a
taxable year may be deferred and treated as occurring on the first day of the
following tax year ("Post-October losses"). For the tax period ended December
31, 2002, the Fund incurred and elected to defer net realized losses of
$1,976,715 from investments and $72,562 from foreign currency related
transactions.
At December 31, 2002, the Fund had a capital loss carryover for U.S. federal
income tax purposes of $53,838,421 of which, $9,424,172 and $674,775 expire in
2006 and 2007, respectively and are subject to Internal Revenue Code Sections
limitations. In addition, capital loss carryovers of $8,654,660, $154,310,
$19,880,258 and $15,050,246 expire in 2005, 2006, 2009 and 2010, respectively.
At June 30, 2003, the identified cost for federal income tax purposes, the gross
unrealized appreciation from investments for those securities having an excess
of value over cost, gross unrealized depreciation from investments for those
securities having an excess of cost over value and the net unrealized
appreciation from investments were $83,250,833, $8,280,584, $(5,215,172) and
$3,065,412, respectively.
NOTE G. RESTRICTED SECURITIES
Certain of the Fund's investments are restricted as to resale and are valued at
fair value as determined in good faith by the Board of Directors under
procedures established by the Board of Directors in the absence of readily
ascertainable market values. The table below shows the number of units/shares
held, the acquisition dates, aggregate cost, fair value as of June 30, 2003,
value per unit/share of such securities and percent of net assets which the
securities comprise.
<Table>
<Caption>
NUMBER FAIR PERCENT
OF VALUE AT VALUE PER OF NET
SECURITY UNITS/SHARES ACQUISITION DATES COST 06/30/2003 UNIT/SHARE ASSETS
- -------- ------------ ----------------- ----------- ----------- ---------- --------
Emerging Markets
Ventures I L.P. 2,172,510 01/22/98-10/01/02 $ 2,032,623 $ 1,379,218 $ 0.63 1.60
------------ ----------- ----------- --------
International Wireless
Communications Holdings Corp. 12,636 12/08/97 274,680 0 0.00 0.00
------------ ----------- ----------- --------
Jamaican Assets I, L.P. 900,664 07/29/97-10/20/97 1,484,581 2,799,001 3.11 3.24
------------ ----------- ----------- --------
J.P. Morgan Latin America
Capital Partners (Cayman), L.P. 609,755 04/10/00-6/28/01 593,760 531,133 0.87 0.62
197,964 04/17/03-5/28/03 196,908 172,439 0.87 0.20
------------ ----------- ----------- --------
807,719 790,668 703,572 0.82
------------ ----------- ----------- --------
</Table>
18
<Page>
<Table>
<Caption>
NUMBER FAIR PERCENT
OF VALUE AT VALUE PER OF NET
SECURITY UNITS/SHARES ACQUISITION DATES COST 06/30/2003 UNIT/SHARE ASSETS
- -------- ------------ ----------------- ----------- ---------- ---------- --------
J.P. Morgan Latin America
Capital Partners (Delaware), L.P. 1,288,029 04/10/00-12/09/02 $ 898,863 $ 606,365 $ 0.47 0.70
75,062 04/17/03 62,676 35,337 0.47 0.04
------------ ----------- ----------- --------
1,363,091 961,539 641,702 0.74
------------ ----------- ----------- --------
Total $ 5,544,091 $ 5,523,493 6.40
=========== =========== ========
</Table>
The Fund may incur certain costs in connection with the disposition of the above
securities.
NOTE H. SELF-TENDER OFFER
In June 2000, the Board of Directors of the Fund approved a self-tender program,
the terms of which include the following: (i) commencing in 2001, 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. Pursuant to this program,
the Fund completed a tender offer for 15% of its outstanding shares in November
2002 (1,115,689 shares) at a price of $10.81 per share.
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. In addition, the self-tender program is likely to reduce the Fund's
asset levels over time. Absent substantial appreciation in the Fund's portfolio
or opportunities to raise additional funds, this could lead to higher expense
ratios, the absence of reasonable diversification or investment opportunities or
other factors that adversely affect the Fund and possibly the continued
viability of the Fund as a closed-end fund. The Board will reevaluate the
program from time to time in light of its effect on the Fund.
19
<Page>
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
On April 24, 2003, 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
- ---------------- --------- --------
Enrique R. Arzac 3,887,210 135,775
George W. Landau 3,881,236 141,749
</Table>
In addition to the directors re-elected at the meeting, James J. Cattano,
William W. Priest, Jr., Riordan Roett and Martin M. Torino continued as
directors of the Fund.
Effective May 21, 2003, Joseph D. Gallagher was appointed as Chairman of the
Fund, Chief Executive Officer and President. Laurence R. Smith, who previously
held these positions, resigned from the Fund effective May 21, 2003.
20
<Page>
PRIVACY POLICY NOTICE (UNAUDITED)
We are committed to maintaining the privacy of every current and prospective
customer. We recognize that you entrust important personal information to us,
and we wish to assure you that we take seriously our responsibilities in
protecting and safeguarding this information.
In connection with making available investment products and services to current
and potential customers, we may obtain nonpublic personal information about you.
This information may include your name, address, e-mail address, social security
number, account number, assets, income, financial situation, transaction history
and other personal information.
We may collect nonpublic information about you from the following sources:
- - Information we receive on applications, forms, questionnaires, web sites,
agreements or in the course of establishing or maintaining a customer
relationship; and
- - Information about your transactions with us, our affiliates, or others.
We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except with your consent or as otherwise permitted
by law. In cases where we believe that additional products and services may be
of interest to you, we may share the information described above with our
affiliates. We may also disclose this information to firms that perform services
on our behalf. These agents and service providers are required to treat the
information confidentially and use it only for the purpose for which it is
provided.
We restrict access to nonpublic personal information about you to those
employees, agents or other parties who need to know that information to provide
products or services to you or in connection with your investments with or
through us. We maintain physical, electronic and procedural safeguards that
comply with federal standards to guard your nonpublic personal information.
NOTE: THIS NOTICE IS PROVIDED TO CLIENTS AND PROSPECTIVE CLIENTS OF CREDIT
SUISSE ASSET MANAGEMENT, LLC ("CSAM"), CSAM CAPITAL INC., AND CREDIT SUISSE
ASSET MANAGEMENT SECURITIES, INC., AND SHAREHOLDERS AND PROSPECTIVE SHAREHOLDERS
IN CSAM SPONSORED AND ADVISED INVESTMENT COMPANIES, INCLUDING CREDIT SUISSE
FUNDS, AND OTHER CONSUMERS AND CUSTOMERS, AS APPLICABLE. THIS NOTICE IS NOT
INTENDED TO BE INCORPORATED IN ANY OFFERING MATERIALS BUT IS MERELY A STATEMENT
OF OUR CURRENT PRIVACY POLICY, AND MAY BE AMENDED FROM TIME TO TIME UPON NOTICE
TO YOU. THIS NOTICE IS DATED AS OF MAY 31, 2003.
21
<Page>
OTHER FUNDS MANAGED BY CREDIT SUISSE ASSET MANAGEMENT, LLC
Credit Suisse Capital Appreciation Fund
Credit Suisse Cash Reserve Fund
Credit Suisse Emerging Growth Fund
Credit Suisse Emerging Markets Fund
Credit Suisse Fixed Income Fund
Credit Suisse Global Fixed Income Fund
Credit Suisse Global Post-Venture Capital Fund
Credit Suisse High Income Fund
Credit Suisse International Focus Fund
Credit Suisse Japan Equity Fund
Credit Suisse Large Cap Value Fund
Credit Suisse Municipal Money Fund
Credit Suisse New York Municipal Fund
Credit Suisse New York Tax Exempt Fund
Credit Suisse Select Equity Fund
Credit Suisse Short Duration Bond Fund
Credit Suisse Small Cap Growth Fund
Credit Suisse Small Cap Value Fund
Credit Suisse Strategic Small Cap Fund
Credit Suisse Tax Efficient Fund
Credit Suisse U.S. Government Money Fund
Fund shares are not deposits or other obligations of Credit Suisse Asset
Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by
Credit Suisse Asset Management, LLC or any affiliate. Fund investments are
subject to investment risks, including loss of your investment. There are
special risk considerations associated with international, global,
emerging-market, small-company, high-yield debt, single-industry, single-country
and other special, aggressive or concentrated investment strategies. Past
performance cannot guarantee future results.
More complete information about a fund, including charges and expenses, is
provided in the Prospectus, which should be read carefully before investing. You
may obtain copies by calling Credit Suisse Funds at 800-927-2874. For up-to-date
performance, please look in the mutual fund section of your newspaper under
Credit Suisse.
Credit Suisse Asset Management Securities, Inc., Distributor.
22
<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,
Inc. Its investment objective is long-term capital appreciation through
investments primarily in Latin American equity securities. Credit Suisse Asset
Management, LLC (New York), the Fund's investment adviser, is part of Credit
Suisse Asset Management ("CSAM"), the institutional and mutual-fund
asset-management arm of Credit Suisse First Boston. As of June 30, 2003, CSAM
managed over $51 billion in the U.S. and, together with its global affiliates,
managed assets of over $312 billion in 14 countries.
SHAREHOLDER INFORMATION
The market price is published in: THE NEW YORK TIMES (daily) under the
designation "LatAmerEq" and THE WALL STREET JOURNAL (daily), and BARRON'S (each
Monday) under the designation "LatAmEq". 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.csam-americas.com.
CLOSED-END FUNDS
SINGLE COUNTRY
The Chile Fund, Inc. (CH)
The First Israel Fund, Inc. (ISL)
The Indonesia Fund, Inc. (IF/INDF)
MULTIPLE COUNTRY
The Emerging Markets Telecommunications Fund, Inc. (ETF)
FIXED INCOME
Credit Suisse Asset Management Income Fund, Inc. (CIK)
Credit Suisse High Yield Bond Fund (DHY)
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
Enrique R. Arzac Director
James J. Cattano Director
George W. Landau Director
William W. Priest, Jr. Director
Riordan Roett Director
Martin M. Torino Director
Joseph D. Gallagher Chairman of the Fund,
Chief Executive Officer
and President
Emily Alejos Chief Investment Officer
Yaroslaw 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.
383 Madison Avenue
New York, NY 10179
CUSTODIAN
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
SHAREHOLDER SERVICING AGENT
Fleet National Bank
(c/o EquiServe, L.P.)
P.O. Box 43010
Providence, RI 02940
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
Two Commerce Square
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 auditors 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(R) LOGO]
3019-SA-03
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ITEM 2. CODE OF ETHICS. Form N-CSR disclosure requirement not yet effective with
respect to the Registrant.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Form N-CSR disclosure requirement not
yet effective with respect to the Registrant.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Form N-CSR disclosure
requirement not yet effective with respect to the Registrant.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Form N-CSR disclosure requirement
not yet effective with respect to the Registrant.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES. Form N-CSR disclosure requirement not
yet effective with respect to the Registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Principal Executive Officer and Principal Financial Officer
concluded that the Registrant's Disclosure Controls and Procedures are
effective based on their evaluation of the Disclosure Controls and
Procedures as of a date within 90 days of the filing date of this
report.
(b) There were no significant changes in Registrant's internal controls
or in other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
(a)(1) Form N-CSR disclosure requirement not yet effective with respect
to the Registrant.
(a)(2) The certifications of the Registrant as required by Rule 30a-2(a)
under the Act are exhibits to this report.
(b) The certifications of the Registrant as required by Rule 30a-2(b)
under the Act are an exhibit to this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
The Latin America Equity Fund, Inc.
/s/ Joseph D. Gallagher
--------------------------------------------------------------
Name: Joseph D. Gallagher
Title: Chief Executive Officer
Date: September 2, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/ Joseph D. Gallagher
--------------------------------------------------------------
Name: Joseph D. Gallagher
Title: Chief Executive Officer
Date: September 2, 2003
/s/ Michael A. Pignataro
------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: September 2, 2003