Monthly Report

Deutsche Equity Income Trust PLC
08 October 2002

                          Deutsche Equity Income Trust



                     REPORT FOR THE MONTH OF SEPTEMBER 2002



MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share index fell by a
disappointing 12.0% in capital terms over the month. Our net asset value per
share fell by 10.6% but the share price fell by 12.5% over the same period as
the premium to net asset value fell from 3.1% to 1.0%.

The market was weak across the board, with the FTSE 100 index down 12.0%, the
FTSE 250 index down 11.8% and the FTSE Small Cap index down 12.7% in capital
terms. Market conditions were generally poor for equity income funds, with the
FTSE 350 Higher Yield index underperforming the FTSE 350 Lower Yield index by
2.6% in capital terms over the month.

The best performing sectors over the month were generally defensive:
Pharmaceuticals made small positive returns following recent weakness, and
Personal Care and Beverages were broadly flat; General Retailers and Food
Retailers also performed relatively well.

The worst performing sectors over the month were Steels (due to concerns about
Corus's planned merger with a Brazilian operator), Life Assurance (due to weak
equity markets putting further pressure on stretched balance sheets and a
surprise rights issue from Legal & General) and Software. The Aerospace &
Defence sector also performed poorly following poor interim results from BAe
Systems.

Our purchases included adding to existing holdings in SIG, Shell, Canary Wharf
and Tate & Lyle as well as establishing a new position in Northern Foods.
Holdings were sold in Smith & Nephew and reduced in Lattice, Centrica, Morrison
and Forth Ports following strong outperformance.

OUTLOOK

Investor sentiment is currently at very depressed levels and we continue to be
cautiously optimistic of a recovery in the UK equity market from current low
levels. However, a quick resolution to the unstable geopolitical situation looks
unlikely and corporate newsflow continues to be disappointing.

Our investment philosophy remains unchanged: we use cash flow return on
investment (CFROI) rather than earnings per share as the principal tool to
analyse and value companies, and construct the portfolio using the most
attractive stocks in each sector. Combined with our commitment to achieve a
respectable level of income, we are confident that this philosophy will continue
to reward shareholders over the longer term.








                                                                                           30/09/02             31/08/02

NET ASSET VALUE                                                                              187.7p               209.9p
MID-MARKET SHARE PRICE                                                                  30/09/02                31/08/02
Ordinary Shares                                                                           189.5p                  216.5p
Dividend Yield (%)                                                                           4.0                     3.5

LARGEST HOLDINGS (market value £49.3 million equal to 66.1% of total portfolio)

                                                                                         £'000's          % of portfolio
BP                                                                                         5,905                     7.9

GlaxoSmithKline                                                                            5,789                     7.8

HSBC Holdings                                                                              4,452                     6.0

Royal Bank of Scotland                                                                     3,161                     4.2

AstraZeneca                                                                                2,992                     4.0

Shell Transport & Trading                                                                  2,545                     3.4

Barclays                                                                                   1,964                     2.6

HBOS                                                                                       1,944                     2.6

Imperial Tobacco                                                                           1,677                     2.2

Vodafone Group                                                                             1,616                     2.2

Tate & Lyle                                                                                1,586                     2.1

Forth Ports                                                                                1,451                     1.9

BT Group                                                                                   1,336                     1.8

Centrica                                                                                   1,294                     1.7

Scottish & Southern Energy                                                                 1,249                     1.7

Canary Wharf Group                                                                         1,166                     1.6

Morrison(W)Supermarket                                                                     1,137                     1.5

Lloyds TSB                                                                                 1,130                     1.5

Lattice Group                                                                              1,123                     1.5

Legal & General                                                                            1,026                     1.4

Viridian Group                                                                             1,013                     1.4

GUS                                                                                          993                     1.3

MM02 7.625% 25/1/2012                                                                        940                     1.3

Prudential                                                                                   933                     1.3

Bunzl                                                                                        901                     1.2
FINANCIAL CALENDAR                                                                                       25 October 2002

Year-end results announced

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.deutsche-its.co.uk.

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