Report to 31 December 2000

Deutsche Equity Income Trust PLC
10 January 2001


Investment trusts
the easy way to invest on the stock market

DEUTSCHE EQUITY INCOME TRUST

                                        
                                       
                          REPORT TO 31 DECEMBER 2000
                                       
                                        
MARKET BACKGROUND

The UK Equity market as measured by the FT-SE All-Share fell by 1.5% in
capital terms in the three months to 31st December.  Our net asset value per
share rose by 3.2% and the share price by 6.0% 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 earlier in the year.  By contrast 'defensive' areas of
the market rose in value as investors sought security of earnings and lower
valuations.  Sectors such as Chemicals, Building, Food, Beverages and
Insurance rose by between 20% and 30% in value.

Our purchases included both higher yielding shares such as Whitbread,
Inchcape, Cookson and Morgan Crucible and some growth stocks such as EMAP and
Carlton.  We began to buy back some technology with small holdings in Bookham
and Sage but this move was premature and prices have since fallen.

OUTLOOK

The market should respond positively to falling interest rates and continued
low inflation.  However, low inflation remains a problem for many companies.
We see a move away from general themes such as value, growth, technology, old
economy/new economy, to the more specific question, namely whether or not a
company can invest and grow profitably in an environment of low growth and low
inflation.





NET ASSET VALUE                      31/12/00   30/09/00
                                       270.8p    262.5p

MID-MARKET SHARE PRICE               31/12/00   30/09/00
Ordinary Shares                       264.0p     249.0p
Dividend Yield (%)                      3.2        3.3

LARGEST  HOLDINGS  (market value £61.5 million  equal  to 61.4% of total
portfolio)
                                               
                                                  % of
31/12/00                             £'000's   portfolio
                                                    
BP Amoco                              5,902       5.9
GlaxoSmithKline                       5,820       5.8
Vodafone Group                        4,867       4.9
AstraZeneca                           3,135       3.1
HSBC Holdings                         2,981       3.0
Shell Transport & Trading             2,891       2.9
Royal Bank of Scotland                2,804       2.8
United Utilities                      2,503       2.5
Cookson Group                         2,422       2.4
EMAP                                  2,261       2.3
Carlton Communications                2,241       2.2
Allied Domecq                         2,224       2.2
Diageo                                1,941       1.9
Powergen                              1,883       1.9
British Telecom                       1,836       1.8
Britannic                             1,780       1.8
CGNU                                  1,777       1.7
Morgan Crucible                       1,704       1.7
Barclays                              1,623       1.6
Lonmin                                1,606       1.6
Abbey National                        1,579       1.6
Centrica                              1,571       1.6
Whitbread                             1,425       1.4
BAE Systems                           1,377       1.4
Mediaone Group                        1,371       1.4
                                                         
FINANCIAL CALENDAR                                       
Half year results announced                                       23 May 2001

For further information, contact Adrian Frost 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:
[e-mail].   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.