Report to June 2001

Deutsche Equity Income Trust PLC
6 July 2001


Deutsche Equity Income Trust Monthly Report


Investment trusts
the easy way to invest on the stock market


                       REPORT FOR THE MONTH OF JUNE 2001
                                      
MARKET BACKGROUND

The UK equity market as measured by the FT-SE All-Share index fell by 3.0%  in
capital terms over the month.  Our net asset value per share fell by 2.5%  and
the share price by 0.6% over the same period.

Conditions  were generally less favourable for income funds as the  FT-SE  350
Value  index  underperformed the FT-SE 350 Growth index  by  0.7%  in  capital
terms.  However, the performance by sector was varied, with 'defensive'  areas
such  as  Food  Producers, Beverages and Food Retailers performing  well.   In
contrast,   the   'new   economy'  sectors  of  IT  Hardware,   Software   and
Telecommunications continued to perform poorly.

Our purchases included both higher yielding shares, such as Slough Estates and
Thistle  Hotels, and some growth stocks, such as 3i Group, J.  D.  Wetherspoon
and  Ultraframe.  Holdings were sold in Hilton Group and Morgan Crucible,  and
reduced in Britannic Assurance and Northern Foods.


OUTLOOK

Corporate  news  flow  continues to deteriorate due  to  the  global  economic
slowdown.   Although it is difficult to predict when there will be a recovery,
we  continue to believe that the UK equity market should respond positively to
falling interest rates and continued low inflation.


NET ASSET VALUE                      30/06/01   31/05/01
                                       261.6p     268.2p

MID-MARKET SHARE PRICE               30/06/01    31/05/01
Ordinary Shares                       265.0p     266.5p
Dividend Yield (%)                      2.8        2.8

LARGEST  HOLDINGS  (market value £65.8 million  equal  to 62.7% of total
portfolio)
                                               
                                                  % of
                                     £'000's   portfolio
GlaxoSmithKline                       9,561       9.1
BP Amoco                              6,388       6.1
HSBC Holdings                         4,350       4.1
Shell Transport & Trading             3,796       3.6
Vodafone Group                        3,123       3.0
AstraZeneca                           3,035       2.9
Lloyds TSB                            2,848       2.7
British Telecom                       2,842       2.7
Royal Bank of Scotland                2,777       2.6
Legal & General                       2,474       2.3
CGNU                                  2,361       2.2
Cookson Group                         2,045       1.9
Bunzl                                 1,948       1.9
EMAP                                  1,855       1.8
Diageo                                1,746       1.7
Barclays                              1,707       1.6
BG Group                              1,660       1.6
Centrica                              1,642       1.6
Carlton Communications                1,530       1.5
3i Group                              1,476       1.4
Allied Domecq                         1,366       1.3
United Utilities                      1,363       1.3
Lonmin                                1,350       1.3
Morrison (W)                          1,334       1.3
Powergen                              1,305       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.