Monthly Report

Deutsche Equity Income Trust PLC
09 September 2002




                          Deutsche Equity Income Trust


                      REPORT FOR THE MONTH OF AUGUST 2002


MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share index fell by 0.2% in
capital terms over the month, a disappointing performance given the sharp fall
in equity markets over the past few months. Our net asset value per share fell
by 0.1% but the share price rose by 1.2% over the same period as the premium to
net asset value increased from 1.9% to 3.1%.

The market was mixed over the period, with the FTSE 100 index down 0.5% and the
FTSE Small Cap index down 1.0% in capital terms, but the FTSE 250 index was up
1.6%. Market conditions were generally favourable for equity income funds, with
the FTSE 350 Higher Yield index outperforming the FTSE 350 Lower Yield index by
0.8% in capital terms over the month.

The best performing sectors over the month were generally defensive: Gas
Distribution outperformed due to a strong bounce in the share price of Centrica,
and Personal Care once again performed well due to excellent interim results
from Reckitt Benckiser. In addition, there was a bounce in Aviva and Invensys
from depressed levels, helping the performance of both the Life Assurance and
Electronics & Electrical Equipment sectors.

The worst performing sectors over the month were Insurance (due to further
problems at Royal & Sun Alliance), Software and Steel. Disappointing newsflow
from AstraZeneca on two of its late stage pipeline drugs also resulted in a poor
performance from the Pharmaceuticals sector.

Our purchases included buying new holdings in Provident Financial, GKN and IMI
as well as adding to the existing holding in Tate & Lyle. Holdings were sold in
Railtrack and Intertek, and significantly reduced in Lloyds TSB and Imperial
Tobacco.

OUTLOOK

The valuation of UK equities continues to look attractive at current depressed
levels and we are cautiously optimistic of a market recovery. However, a quick
resolution to the unstable geopolitical situation looks unlikely and will
continue to act as a drag upon investor sentiment.

Our investment philosophy remains unchanged: we use cash flow return on
investment (CFROI) rather than earnings per share as the principal tool to
analyse and value companies, and construct the portfolio using the most
attractive stocks in each sector. Combined with our commitment to achieve a
respectable level of income, we are confident that this philosophy will continue
to reward shareholders over the longer term.


                                                                                    31/08/02              31/07/02

NET ASSET VALUE                                                                      209.9p                210.1p

MID-MARKET SHARE PRICE                                                           31/08/02               31/07/02
Ordinary Shares                                                                   216.5p                 214.0p
Dividend Yield (%)                                                                  3.5                    3.5

LARGEST HOLDINGS (market value £55.7 million equal to 66.8% of total portfolio)

                                                                                 £'000's         % of portfolio
BP                                                                                         6,954           8.3

GlaxoSmithKline                                                                            5,723           6.8

HSBC Holdings                                                                              5,084           6.1

Royal Bank of Scotland                                                                     3,899           4.7

AstraZeneca                                                                                2,828           3.4

Shell Transport & Trading                                                                  2,657           3.2

Barclays                                                                                   2,453           2.9

HBOS                                                                                       2,396           2.9

Vodafone Group                                                                             2,052           2.4

Centrica                                                                                   1,847           2.2

Imperial Tobacco                                                                           1,799           2.1

Forth Ports                                                                                1,717           2.1

Lattice Group                                                                              1,659           2.0

BT Group                                                                                   1,581           1.9

Tate & Lyle                                                                                1,410           1.7

Prudential                                                                                 1,399           1.7

Legal & General                                                                            1,345           1.6

Lloyds TSB                                                                                 1,345           1.6

Scottish & Southern Energy                                                                 1,222           1.5

Morrison(W)Supermarket                                                                     1,215           1.5

Canary Wharf Group                                                                         1,187           1.4

3i Group                                                                                   1,061           1.3

Arriva                                                                                       979           1.2

Viridian Group                                                                               975           1.2

Bunzl                                                                                        952           1.1




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