Monthly Report

Deutsche Equity Income Trust PLC
9 October 2001


 DEUTSCHE EQUITY INCOME TRUST


                    REPORT FOR THE MONTH OF SEPTEMBER 2001

MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share index fell by 9.6% in
capital terms over the month. Our net asset value per share fell by 9.8%, but
the share price fell by 12.4% over the same period as the discount to net
asset value widened from 0.5% to 3.4%.

Conditions were not particularly favourable for income funds as the FTSE 350
Value index underperformed the FTSE 350 Growth index by 0.5% in capital terms.
In addition, there was significant underperformance from the FTSE 250 index
(which fell by 16.3% in capital terms) and the FTSE Small Cap index (which
fell by 19.7% in capital terms) relative to the FTSE 100 (which fell by just
8.3% in capital terms). The best performing sectors over the month were
'defensive' areas such as Pharmaceuticals, Tobacco and Water although
Telecommunication Services were also resilient to the market downturn,
reversing some of the underperformance in recent months. Apart from the
underperformance of Insurance stocks following the WTC bombing, the worst
performing sectors were 'cyclical' areas such as Electronic & Electrical
Equipment, Steel & Other Metals, Engineering & Machinery and Media &
Photography.

Our purchases included increasing existing holdings in AstraZeneca, HSBC
Holdings, Canary Wharf and Forth Ports as well as buying new holdings in
Alliance & Leicester and GUS. Holdings were sold in Bradford & Bingley, Reed
International, Rexam, Wetherspoon (J.D.) and Slough Estates and significantly
reduced in Cookson convertible bonds and Allied Domecq.



OUTLOOK

The terrible events of September have accelerated the bear market and added to
investor fear and uncertainty, prolonging the downturn in the global economy.
However, although the short-term outlook is particularly uncertain, policy
makers both here in the UK and abroad are making concerted efforts to provide
liquidity, lower interest rates and release more funds for personal and public
expenditure which should ultimately help support economies and markets.




NET ASSET VALUE                                      30/09/01       31/08/01

                                                   226.6p                251.2p

MID-MARKET SHARE PRICE                              30/09/01          31/08/01
Ordinary Shares                                  219.0p            250.0p
Dividend Yield (%)                                 3.4               3.0

LARGEST HOLDINGS (market value £60.0 million equal to 66.5% of total portfolio)

                                                                    % of
                                                   
                                                     £'000's       portfolio
GlaxoSmithKline                                        9,530        10.6

BP Amoco                                               6,142        6.8

HSBC Holdings                                          4,634        5.2

AstraZeneca                                            3,969        4.4

Royal Bank of Scotland                                 3,277        3.6

Shell Transport & Trading                              3,276        3.6

Vodafone Group                                         2,974        3.3

Lloyds TSB                                             2,349
                                                                 2.6
Legal & General                                        2,271
                                                                    2.5
Diageo                                                 2,012
                                                                    2.2
British Telecom                                        1,915
                                                                    2.1
CGNU                                                   1,667
                                                                    1.9
Barclays                                               1,604
                                                                    1.8
Centrica                                               1,469
                                                                    1.6
Bunzl                                                  1,453
                                                                    1.6
BG Group                                               1,445
                                                                    1.6
EMAP                                                   1,431
                                                                    1.6
United Utilities                                       1,281
                                                                    1.4
Morrison(W)Supermarket                                 1,266
                                                                    1.4
Forth Ports                                            1,047
                                                                    1.2
Mediaone Group                                         1,005
                                                                    1.1
Abbey National                                         1,001
                                                                    1.1
BAE Systems                                              993
                                                                    1.1
Lonmin                                                   974
                                                                    1.1
3I Group                                                 969
                                                                    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 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.