Monthly Report

Deutsche Equity Income Trust PLC
10 September 2001



                                DEUTSCHE EQUITY INCOME TRUST PLC

                     REPORT FOR THE MONTH OF AUGUST 2001



MARKET BACKGROUND

The UK equity market as measured by the FT-SE All-share index fell by 2.8% in
capital terms over the month. Our net asset value per share fell by 2.5%, but
the share price rose by 2.7% over the same period as the discount to net asset
value narrowed from 5.5% to 0.5%.

Conditions were generally more favourable for income funds as the FT-SE 350
Value index outperformed the FT-SE 350 Growth index by 1.3% in capital terms.
However, the performance by sector was varied, with some 'cyclical' areas such
as Packaging, Forestry & Paper and Steel & Other Metals performing well but
Aerospace & Defence underperforming. Other poor performing sectors included IT
Hardware, Telecommunication Services and Pharmaceuticals.

Our purchases included topping up existing holdings with attractive yields,
such as National Grid and Cable & Wireless, and buying new holdings in
Luminar, Provident Financial, Euromoney and Arriva. Holdings were sold in
Cookson, Man Group and Thus, and significantly reduced in British Telecom,
Lloyds TSB and CGNU.



OUTLOOK

Corporate news flow continues to deteriorate but recent interest rate cuts and
signs of improvement in the leading indicators suggest that the downturn in
the global economy may be coming to an end. However, we continue to be highly
selective in our stock selection in these uncertain times.





NET ASSET VALUE                                31/08/01              31/07/01

                                                 251.2p                257.7p

MID-MARKET SHARE PRICE                         31/08/01              31/07/01
Ordinary Shares                                  250.0p                243.5p
Dividend Yield (%)                                 3.0                    3.0

LARGEST HOLDINGS (market value £62.1 million equal to 61.6% of total portfolio)

                                                                    % of
                                                      £'000's    portfolio
GlaxoSmithKline                                        8,739        8.7

BP Amoco                                               6,388        6.3

HSBC Holdings                                          4,140        4.1

Shell Transport & Trading                              3,648        3.6

Royal Bank of Scotland                                 3,408        3.4

AstraZeneca                                            3,048        3.0

Vodafone Group                                         2,726        2.7

Legal & General                                        2,578        2.6

Lloyds TSB                                             2,568        2.5

British Telecom                                        2,377        2.4

CGNU                                                   2,024        2.0

EMAP                                                   1,903        1.9

BG Group                                               1,694        1.7

Centrica                                               1,633        1.6

Bunzl                                                  1,599        1.6

Diageo                                                 1,581        1.6

Carlton Communications                                 1,469        1.5

Cookson Group                                          1,400        1.4

Bank of Scotland                                       1,386        1.4

Lonmin                                                 1,356        1.3

Powergen                                               1,353        1.3

Barclays                                               1,329        1.3

United Utilities                                       1,275        1.3

3i Group                                               1,253        1.2

Morrison (W)                                           1,247        1.2




For further information, contact Graham Ashby at Deutsche Asset Management on
020-7545-6000.

For additional copies, changes of address or details of our Private Investors'
Plan, low cost ISA and Dividend Reinvestment Scheme (a recently established
scheme through which shareholders, who hold their shares on the Company's main
register, can use their dividends to purchase further shares) contact Mark
Pope on 020-7545-0520, e-mail address: [e-mail]. Further details of
Deutsche Equity Income Trust including the latest annual, interim and monthly
reports can be found on the Deutsche Asset Management website located at
www.deam-uk.com/uk/invest/.

Issued by Deutsche Equity Income Trust PLC and approved by Deutsche Investment
Trust Managers Limited, regulated by the Investment Management Regulatory
Organisation and manager of Deutsche Equity Income Trust PLC. Investors should
be aware that past performance is not necessarily a guide to future returns,
values can fall as well as rise and investors may not get back the amount they
invested.