Monthly Report

Deutsche Equity Income Trust PLC
14 November 2003

DEUTSCHE EQUITY INCOME TRUST PLC



                      REPORT FOR THE MONTH OF OCTOBER 2003

MARKET BACKGROUND

The FTSE All-Share Index rose by 4.8% in capital terms over the month, resuming
its recovery from very depressed levels earlier in the year. In contrast to
recent months, there was little difference between the performance from larger
and smaller companies, with the FTSE 100 Index rising by 4.8%, the FTSE Mid-250
Index by 4.9% and the FTSE Small Cap Index by 5.0%. However, the FTSE 350 Higher
Yield Index outperformed the FTSE 350 Lower Yield Index by 0.6%, principally due
to strong outperformance from Mining and Life Assurance shares.

Our net asset value per share rose by a slightly disappointing 3.9% over the
month. This underperformance was mainly due to our overweighting of shares in
the Construction & Building Materials sector, which retraced some of their
recent gains following the release of the latest minutes from the MPC indicating
an increase in future interest rates. Our large underweighting in Mining shares
was also detrimental to performance, but we strongly believe that many current
high commodity prices are unsustainable given slowing demand in China and
increased supply. Our holdings in Food Producers & Processors also
underperformed over the month following another negative update from key
constituent Unilever. Our share price rose by just 1.2% over the same period,
with the discount to net asset value widening from 0.5% to 3.0%.

Major purchases during the period included establishing new holdings in Standard
Chartered preference shares, HBOS and Cattles. Holdings were sold in Alliance &
Leicester, and reduced in both Royal Bank of Scotland and Provident Financial.

OUTLOOK

UK base rates have recently been increased by 0.25% and are forecast to increase
further in the coming months. However, the new inflation measure of HCIP is
below the Bank of England's target and sterling has been strong against most
major currencies. As a result, UK base rates look unlikely to rise significantly
from current levels given that the central banks in both the US and Europe
appear intent on keeping their interest rates on hold.

A continued concern, however, is the high oil price caused by a combination of
OPEC's cut in production and further unrest in the Middle East. Any sustained
increase in the price of oil will have a detrimental effect upon GDP growth and,
ultimately, corporate profitability and cash generation.




                                                                                        31/10/03                30/09/03

NET ASSET VALUE                                                                           220.2p                  212.0p

MID-MARKET SHARE PRICE                                                                  31/10/03                30/09/03
Ordinary Shares                                                                           213.5p                  211.0p
Dividend Yield (%)                                                                           3.7                     3.6
Discount/(Premium) (%)                                                                       3.0                     0.5

LARGEST HOLDINGS (market value £62.8 million equal to 69.9% of total portfolio)

                                                                                         £'000's      % of portfolio
HSBC Holdings                                                                              7,690           8.6

BP                                                                                         6,073           6.8

GlaxoSmithKline                                                                            5,893           6.6

AstraZeneca                                                                                4,066           4.5

Vodafone Group                                                                             3,572           4.0

Royal Bank of Scotland                                                                     3,340           3.7

Barclays                                                                                   3,245           3.6

Shell Transport and Trading                                                                3,237           3.6

BT Group                                                                                   2,651           2.9

Scottish & Southern Energy                                                                 2,548           2.8

Tate & Lyle                                                                                2,039           2.3

Gallaher                                                                                   1,673           1.9

Imperial Tobacco                                                                           1,640           1.8

Lloyds TSB                                                                                 1,639           1.8

Legal & General                                                                            1,611           1.8

National Grid Transco                                                                      1,565           1.7

Morrison (W) Supermarkets                                                                  1,395           1.6

Viridian Group                                                                             1,321           1.5

BPB                                                                                        1,224           1.4

GUS                                                                                        1,198           1.3

British Sky Broadcasting                                                                   1,119           1.2

Northern Rock                                                                              1,099           1.2

Bunzl                                                                                      1,030           1.1

Vardy (Reg)                                                                                  982           1.1

Associated British Foods                                                                     980           1.1


FINANCIAL CALENDAR

Ex-dividend date
                                                                                                        12 November 2003

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