Monthly Report

Deutsche Equity Income Trust PLC
18 March 2002



                          Deutsche Equity Income Trust


                     REPORT FOR THE MONTH OF FEBRUARY 2002



MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share index fell by 1.2% in
capital terms over the month. Our net asset value per share fell by 0.1%, but
the share price fell by 3.6% over the same period as the discount to net asset
value widened from 2.5% to 5.9%.

Conditions were generally favourable for equity income funds as the FTSE 350
Higher Yield index outperformed the FTSE 350 Lower Yield index by 1.5% in
capital terms, continuing the trend since the end of last year. The FTSE 250
index (which fell by 0.3% in capital terms) outperformed the FTSE 100 index
(which fell by 1.2% in capital terms), but the FTSE Small Cap index (which fell
by 2.7% in capital terms) underperformed. The best performing sectors over the
month were the 'defensive' areas of Personal Care & Household Products, Food
Producers & Processors and Food & Drug Retailers as well as the 'safe haven'
area of Oil & Gas given the escalation of tensions in the Middle East. The worst
performing sectors over the month were once again the 'TMT' areas of IT
Hardware, Software & Computer Services and Telecommunication Services as well as
the Insurance and Life Assurance sectors due to increased pressure on balance
sheets and the ability to maintain dividends.

Our purchases included buying new holdings in Daily Mail and Prudential as well
as adding to holdings in both Barclays and HBOS. Holdings were sold in BAA,
Slough Estates, Sytner Group and Wilson (Connolly) and reduced in Lloyds TSB
following recent strong outperformance.

OUTLOOK

The outlook for dividend growth within the UK equity market continues to
deteriorate and increased equity issuance to shore up weak balance sheets or to
provide a war chest for acquisitions is putting a ceiling on the short-term
potential for capital growth. However, despite increased tensions in the Middle
East, there are some further signs of an increase in economic activity without
an increase in inflation. As a result, the longer-term outlook for the UK equity
market continues to look positive.

We continue to maintain our balanced approach to portfolio construction,
preferring to pick the most attractive stocks in each sector rather than making
large macro-economic calls.




                                                                           28/02/02              31/01/02

NET ASSET VALUE                                                            241.8p                242.1p

MID-MARKET SHARE PRICE                                                     28/02/02              31/01/02
Ordinary Shares                                                            227.5p                236.0p
Dividend Yield (%)                                                         3.3                   3.2

LARGEST HOLDINGS (market value £62.1 million equal to 64.3% of total portfolio)

                                                                                         £'000's    % of portfolio
GlaxoSmithKline                                                                            8,063           8.4

BP                                                                                         7,563           7.8

AstraZeneca                                                                                4,828           5.0

HSBC Holdings                                                                              4,758           4.9

Royal Bank of Scotland                                                                     4,116           4.3

Shell Transport & Trading                                                                  2,702           2.8

Vodafone Group                                                                             2,652           2.7

Barclays                                                                                   2,245           2.3

Legal & General                                                                            2,243           2.3

Lloyds TSB                                                                                 2,046           2.1

Forth Ports                                                                                1,948           2.0

Diageo                                                                                     1,883           1.9

BT Group                                                                                   1,817           1.9

Centrica                                                                                   1,555           1.6

HBOS                                                                                       1,453           1.5

CGNU                                                                                       1,425           1.5

Enterprise Oil                                                                             1,399           1.5

Scottish & Southern Energy                                                                 1,396           1.5

Canary Wharf Group                                                                         1,323           1.4

Morrison(W)Supermarket                                                                     1,297           1.3

Bunzl                                                                                      1,165           1.2

BG Group                                                                                   1,138           1.2

3i Group                                                                                   1,109           1.2

Associated British Foods                                                                     998           1.0

MMO2 7.625% 25/1/12                                                                          977           1.0


FINANCIAL CALENDAR

Company Half-year end                                             31 March 2002

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