Monthly Report

Deutsche Equity Income Trust PLC
11 July 2003



                          Deutsche Equity Income Trust

                       REPORT FOR THE MONTH OF JUNE 2003



MARKET BACKGROUND

The UK equity market was relatively flat over the month, with the FTSE All-Share
Index rising by just 0.1% in capital terms. However, performance across the
market was mixed, with the FTSE 100 Index falling by 0.4% but the FTSE Mid 250
Index rising by 3.1% and the FTSE Small Cap Index rising by 3.6%. Equity
investors looking for income also fared relatively well, with the FTSE 350
Higher Yield Index outperforming the FTSE 350 Lower Yield Index by 1.4% in
capital terms.

Performance over the month was good, with our net asset value per share rising
by 1.1%. The share price rose by 6.1% over the same period, moving to a modest
1.0% premium to net asset value from a 3.8% discount.

The best performing sectors over the month were the 'cyclical' areas of
Automobiles & Parts and Electronic & Electrical Equipment. General Retailers,
Leisure & Hotel and Financial stocks also performed well. The worst performing
sectors were Telecom Services and IT Hardware, although Food Producers &
Processors were also weak following another disappointing update from Unilever.

Major transactions during the period included adding to existing holdings in
Tate & Lyle, Gallaher and Smith & Nephew, as well as establishing a new holding
in Marks & Spencer. Holdings were sold in both Debenhams and Carphone Warehouse,
and reduced in Electrocomponents.

OUTLOOK

The sharp rally in equity markets over the last few months has reduced the
available dividend yield from the UK equity market to 3.4%. However, despite the
adverse impact of a weak dollar on many large multi-national companies, we are
detecting a modest recovery in corporate profitability and cash generation which
should ultimately result in better dividend growth. In addition, we continue to
believe that UK interest rates have the potential to fall further. This should
help entice investors sitting on cash back into the UK equity market,
particularly into shares or funds providing an attractive level of income.


                                                                                        30/06/03                31/05/03

NET ASSET VALUE                                                                           207.4p                  205.2p

MID-MARKET SHARE PRICE                                                                  30/06/03                31/05/03
Ordinary Shares                                                                           209.5p                  197.5p
Dividend Yield (%)                                                                           3.6                     3.8

LARGEST HOLDINGS (market value £60.6 million equal to 72.7% of total portfolio)

                                                                                         £'000's          % of portfolio
HSBC Holdings                                                                              6,346                     7.6

GlaxoSmithKline                                                                            5,559                     6.7

BP                                                                                         5,358                     6.4

Royal Bank of Scotland                                                                     4,537                     5.4

AstraZeneca                                                                                3,733                     4.5

Shell Transport and Trading                                                                3,519                     4.2

BT Group                                                                                   2,912                     3.6

Scottish & Southern Energy                                                                 2,536                     3.0

Vodafone Group                                                                             2,518                     3.0

Tate & Lyle                                                                                2,403                     2.9

Imperial Tobacco                                                                           2,262                     2.7

Barclays                                                                                   1,710                     2.1

National Grid Transco                                                                      1,710                     2.1

Lloyds TSB                                                                                 1,577                     1.9

SIG                                                                                        1,567                     1.9

Gallaher                                                                                   1,523                     1.8

GUS                                                                                        1,374                     1.6

Viridian Group                                                                             1,371                     1.6

Provident                                                                                  1,348                     1.6

Legal & General                                                                            1,301                     1.6

Standard Chartered                                                                         1,235                     1.5

BPB                                                                                        1,130                     1.4

3i Group                                                                                   1,041                     1.2

BAA                                                                                        1,031                     1.2

Morrison (W) Supermarkets                                                                  1,031                     1.2


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 Plan (a plan 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 Investment Trust Managers website located at
www.deutsche-its.co.uk.

Issued by Deutsche Equity Income Trust PLC and approved by Deutsche Investment
Trust Managers Limited authorised and 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, the
price of shares and the income from them may 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