Monthly Report

Deutsche Equity Income Trust PLC
13 February 2004


                          Deutsche Equity Income Trust

                      REPORT FOR THE MONTH OF JANUARY 2004


MARKET BACKGROUND


The UK equity market as measured by the FTSE All-Share Index fell by 0.9% in
capital terms over the month.  Most of this decline was concentrated in larger
stocks (with the FTSE 100 Index falling by 1.9%) whereas both mid- and small-cap
stocks rose (with the FTSE Mid-250 Index up 3.8% and the FTSE Small Cap Index up
5.8% in capital terms).


Our investment performance during the month was slightly disappointing.  Our net
asset value per share fell by 1.2%, 0.3% behind the FTSE All-Share Index.
However, it was generally a difficult period for equity income investors as the
FTSE 350 Higher Yield Index underperformed the Lower Yield Index by 1.0% over
the period.


Our share price performance during the month was somewhat better.  The share
price increased by 0.7% over the period, moving from a 1.4% discount to a modest
0.5% premium to net asset value per share.


The best performing sectors over the month were Steel & Other Metals, Household
Goods, Electrical & Electronic Equipment, IT Hardware and Media.  The share
prices of Reuters and British Airways were particularly strong, with investors
believing that both companies are now over the worst of their recent troubles.


The worst performing sectors over the month were Oil & Gas, Food & Drug
Retailers, Pharmaceuticals & Biotech, Electricity and Other Utilities.  Share
prices in Shell and J. Sainsbury were weak as both companies produced negative
updates to investors.  We are currently sticking with our positions in Shell
ahead of a meeting with management later this month.


Key transactions during the period included switching the holding in HBOS into
Royal Bank of Scotland.  A new holding was also established in Johnson Matthey
which, due to its high exposure to platinum through its precious metals and
autocatalyst businesses, should act as a hedge against our large underweight
position in Mining shares.  Holdings were increased in Bunzl following recent
underperformance based on weakness of the US dollar, but reduced in BT and sold
in Unilever.


We have increased gearing to £4.5 million which we intend to maintain.


OUTLOOK


Despite another increase in interest rates in the UK to 4.0%, investor sentiment
has continued to improve from very depressed levels, helped by more favourable
economic indicators and corporate newsflow.  However, the continued strength of
the oil price (which, if sustained, will curtail any economic recovery) and
weakness of the US$ (which will impact reported profits, cash generation and,
most importantly, dividends to UK shareholders) remain significant concerns.


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.


                                                                              31/01/04           31/12/03

NET ASSET VALUE                                                                 226.8p             229.6p

MID-MARKET SHARE PRICE                                                        31/01/04           31/12/03

Ordinary Shares                                                                 228.0p             226.5p

Dividend Yield (%)                                                                 3.5                3.5

Discount/(Premium) (%)                                                           (0.5)                1.4


LARGEST HOLDINGS (market value £65.7 million equal to 69.9% of total portfolio)

                                                                           £'000's      % of portfolio

HSBC Holdings                                                                7,351        7.8

GlaxoSmithKline                                                              5,074        5.4

BP                                                                           5,009        5.3

Shell Transport and Trading                                                  4,436        4.7

Royal Bank of Scotland                                                       4,351        4.6

AstraZeneca                                                                  4,208        4.5

Vodafone Group                                                               3,969        4.2

Barclays                                                                     3,269        3.5

Scottish & Southern Energy                                                   2,756        3.0

Northern Rock                                                                2,178        2.3

Tate & Lyle                                                                  2,139        2.3

BAA                                                                          2,005        2.1

BT Group                                                                     1,967        2.1

Lloyds TSB Group                                                             1,843        2.0

Imperial Tobacco                                                             1,816        2.0

Gallaher                                                                     1,713        1.8

Bunzl                                                                        1,612        1.7

Viridian Group                                                               1,426        1.5

Morrison (W) Supermarkets                                                    1,384        1.5

BPB                                                                          1,369        1.5

Wolseley                                                                     1,347        1.4

GUS                                                                          1,211        1.3

Vardy                                                                        1,146        1.2

Provident Financial                                                          1,076        1.1

MMO2                                                                         1,066        1.1




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 and approved by Deutsche Investment Trust Managers Limited, One Appold
Street, London EC2A 2UU, authorised and regulated by the Financial Services
Authority and manager of Deutsche Equity Income Trust PLC.  Investors should
note that the price of shares and the income from them can go down as well as up
and are not guaranteed and investors may not get back the amount they invested.
The use of gearing is likely to lead to volatility in the Net Asset Value (NAV),
meaning that a relatively small movement either down or up in the value of the
Trust's total assets will result in a magnified movement in the same direction
of that NAV.  In extreme circumstances, investors may get nothing back at all if
the fall in value is sufficiently large.


                      This information is provided by RNS
            The company news service from the London Stock Exchange