Report to 31 March 2001
Deutsche Equity Income Trust PLC
9 April 2001
Investment trusts
the easy way to invest on the stock market
REPORT TO 31 MARCH 2001
MARKET BACKGROUND
The UK Equity market as measured by the FT-SE All-Share fell by 9.1% in
capital terms in the three months to 31 March. Our net asset value per share
fell by 4.3% and the share price by 7.2% over the same period.
Conditions continued to favour income funds as the lower yielding sectors such
as Software, I.T. hardware and Telecoms fell sharply, continuing the
correction that started last year. By contrast 'defensive' areas of the
market rose in value as investors sought security of earnings. Sectors such
as Mining, Oil and Gas, General Retailers and Real Estate all produced
positive returns in a weak equity market.
Our purchases included both higher yielding shares such as HSBC Holdings,
Lloyds TSB and CGNU and some growth stocks such as GlaxoSmithKline, BG,
Reuters and Carphone Warehouse. We also took advantage of further falls in
the share prices of technology stocks to add to positions in Marconi and Cable
& Wireless, although the latter proved to be rather premature as the company
disappointed with a surprise profit warning.
OUTLOOK
We continue to believe that the market should respond positively to falling
interest rates and continued low inflation. However, profit forecasts still
appear to be too optimistic and corporate news flow is likely to remain poor
for the next few months.
NET ASSET VALUE 31/03/01 31/12/00
256.1p 270.8p
MID-MARKET SHARE PRICE 31/03/01 31/12/00
Ordinary Shares 245.0p 264.0p
Dividend Yield (%) 3.3 3.2
LARGEST HOLDINGS (market value £62.9 million equal to 61.7% of total
portfolio)
% of
31/03/01 £'000's portfolio
GlaxoSmithKline 8,709 8.5
BP Amoco 6,361 6.2
HSBC Holdings 4,357 4.3
Vodafone Group 3,827 3.7
AstraZeneca 3,121 3.1
Shell Transport & Trading 2,864 2.8
Royal Bank of Scotland 2,834 2.8
Cookson Group 2,260 2.2
CGNU 2,329 2.3
Smiths Group 2,193 2.1
Allied Domecq 2,099 2.1
EMAP 1,916 1.9
Lloyds TSB 1,794 1.8
Barclays 1,719 1.7
Carlton Communications 1,714 1.7
BG Group 1,666 1.6
Britannic 1,635 1.6
Morgan Crucible 1,623 1.6
Diageo 1,583 1.5
Whitbread 1,494 1.5
Centrica 1,436 1.4
British Telecom 1,433 1.4
Reuters Group 1,371 1.3
Powergen 1,298 1.3
Bunzl 1,280 1.3
FINANCIAL CALENDAR
Company Half-year end 31 March 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 and low cost ISA contact Mark Pope on 020-7545-0520, e-mail address:
mark.pope@db.com. Further details of the Deutsche Equity Income Trust
including the latest annual and interim 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.
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