Monthly Report

Deutsche Equity Income Trust PLC
8 February 2002


DEUTSCHE EQUITY INCOME TRUST PLC


                      REPORT FOR THE MONTH OF JANUARY 2002


MARKET BACKGROUND


The UK equity market as measured by the FTSE All-Share index fell by 1.1% in
capital terms over the month. Our net asset value per share rose by 0.2%, but
the share price fell by 1.1% over the same period as the discount to net asset
value widened from 1.3% to 2.5%.


Conditions were generally favourable for equity income funds as the FTSE 350
Higher Yield index outperformed the FTSE 350 Lower Yield index by 5.5% in
capital terms. However, both the FTSE 250 index (which fell by 1.5% in capital
terms) and the FTSE Small Cap index (which fell by 2.0% in capital terms)
underperformed the FTSE 100 index (which fell by just 1.0% in capital terms).
The best performing sectors over the month were the 'cyclical' areas of Mining
and Steel & Other Metals as well as the 'defensive' areas of Electricity and
Tobacco. The worst performing sectors over the month included the 'TMT' areas of
Telecom Services, IT Hardware and Media, although the Insurance sector was also
weak due to concerns about the deteriorating prospects for key constituent Royal
& Sun Alliance.


Our purchases included buying new holdings in Gallaher Group, Severn Trent,
Kelda and Slough Estates as well as in the MMO2 corporate bond. Holdings were
sold in Morgan Crucible, Powergen and Six Continents and significantly reduced
in both United Utilities and Imperial Tobacco.


OUTLOOK


The outlook for dividend growth continues to deteriorate due to further pressure
on corporate profitability and cash generation. In addition, the expected
increase in equity issuance by UK companies looking to strengthen their balance
sheets over the coming months is likely to put a ceiling on the short-term
potential for capital growth despite a continued favourable outlook for
inflation and interest rates and some tentative signs of a pick-up in global
economic activity.


As a result, we continue to maintain our balanced approach to portfolio
construction, preferring to pick the most attractive stocks in each sector
rather than making large macro-economic calls.

                                               31/01/02               31/12/01

NET ASSET VALUE                                  242.1p                 241.6p

MID-MARKET SHARE PRICE                         31/01/02              31/12/01

Ordinary Shares                                  236.0p                238.5p

Dividend Yield (%)                                  3.2                   3.2

LARGEST HOLDINGS (market value £62.1 million equal to 64.4% of total portfolio)

                                              £'000's         % of portfolio

GlaxoSmithKline                                 7,899           8.2

BP                                              7,115           7.4

HSBC Holdings                                   4,885           5.1

AstraZeneca                                     4,388           4.6

Royal Bank of Scotland                          4,242           4.4

Vodafone Group                                  3,019           3.1

Lloyds TSB                                      2,736           2.8

Shell Transport & Trading                       2,639           2.7

Legal & General                                 2,359           2.5

Barclays                                        1,974           2.0

Diageo                                          1,847           1.9

Forth Ports                                     1,736           1.8

Centrica                                        1,684           1.8

CGNU                                            1,640           1.7

Bunzl                                           1,611           1.7

BT Group                                        1,595           1.7

Enterprise Oil                                  1,370           1.4

Scottish & Southern Energy                      1,368           1.4

Canary Wharf Group                              1,270           1.3

3i Group                                        1,240           1.3

Morrison(W)Supermarket                          1,222           1.3

BG Group                                        1,198           1.2

Sage Group                                      1,068           1.1

HBOS                                            1,006           1.0

MMO2 7.625% 25/1/12                             995           1.0


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 Financial Services Authority 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.



                      This information is provided by RNS
            The company news service from the London Stock Exchange