Monthly Report

Deutsche Equity Income Trust PLC
10 December 2001




DEUTSCHE EQUITY INCOME TRUST


                    REPORT FOR THE MONTH OF NOVEMBER 2001


MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share index rose by 4.2% in
capital terms over the month. Our net asset value per share rose by 3.9%, but
the share price rose by 6.7% over the same period as the discount to net asset
value narrowed from 3.8% to 1.1%.

Conditions were not particularly favourable for income funds as the FTSE 350
Higher Yield index underperformed the FTSE 350 Growth index by 0.2% in capital
terms. However, there was significant outperformance from the FTSE 250 index
(which rose by 9.0% in capital terms) and the FTSE Small Cap index (which rose
by 12.0% in capital terms) relative to the FTSE 100 (which rose by just 3.3%
in capital terms). The best performing sectors over the month were the 'TMT'
and 'cyclical' areas of the market such as Electronics & Electrical Equipment,
IT Hardware, Steel & Other Metals and Mining. The worst performing sectors
over the month were the 'defensive' areas of the market such as Household
Goods & Textiles, Tobacco, Electricity and Pharmaceuticals. The Oil & Gas
sector also significantly underperformed as the oil price weakened.

Our purchases included increasing existing holdings in BP and Imperial Tobacco
as well as buying new holdings in Wolverhampton & Dudley, Morgan Crucible and
Profile Therapeutics. Holdings were sold in Smiths Group, ICI, GKN, BAe
Systems and Royal Sun Alliance.


OUTLOOK

The UK equity market has bounced strongly in recent weeks and is now at a
higher level than that seen before the terrorist attacks on 11 September.
However, despite some signs of a recovery in consumer confidence, the
immediate outlook for economic growth and corporate profitability remains poor
despite the substantial reduction in interest rates around the world by the
monetary authorities. As a result, we continue to adopt a balanced approach to
portfolio construction in the current uncertain environment.


NET ASSET VALUE                     30/11/01              31/10/01

                                    240.2p                231.2p

MID-MARKET SHARE PRICE                      30/11/01          31/10/01
Ordinary Shares                             237.5p            222.5p
Dividend Yield (%)                          3.2               3.4

LARGEST HOLDINGS (market value £64.3 million equal to 65.8% of total portfolio)

                                                             % of
                                              £'000's        portfolio

GlaxoSmithKline                               7,958          8.1

BP                                            6,732          6.9

HSBC Holdings                                 5,632          5.8

AstraZeneca                                   4,232          4.3

Royal Bank of Scotland                        3,977          4.1

Vodafone Group                                3,569          3.7

Shell Transport & Trading                     2,658          2.7

Lloyds TSB                                    2,609          2.7

Legal & General                               2,389          2.5

Diageo                                        2,129          2.2

Barclays                                      2,000          2.0

EMAP                                          1,977          2.0

BT Group                                      1,968          2.0

Forth Ports                                   1,684          1.7

CGNU                                          1,659          1.7

Bunzl                                         1,621          1.7

Centrica                                      1,543          1.6

3i Group                                      1,413          1.4

Canary Wharf Group                            1,316          1.3

National Grid                                 1,283          1.3

United Utilities                              1,281          1.3

Morrison(W)Supermarket                        1,247          1.3

Imperial Tobacco                              1,225          1.3

Mediaone Group                                1,122          1.1

BG Group                                      1,102          1.1
FINANCIAL CALENDAR

Annual General Meeting                                         14 December 2001

Final dividend paid                                            28 December 2001


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.