Monthly Report

Deutsche Equity Income Trust PLC
16 April 2004



Deutsche Equity Income Trust PLC



                       REPORT FOR THE MONTH OF MARCH 2004


MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share Index fell by 2.1% in
capital terms over the month. Mid-cap stocks were the star performers, declining
by just 0.2% compared with a 2.4% decline in both the FTSE 100 and the FTSE
Small Cap Indices.

Our investment performance during the month was good. Our net asset value per
share fell by 1.8%, 0.3% ahead of the FTSE All-Share Index. It was also a
generally good period for equity income investors as the FTSE 350 Higher Yield
Index outperformed the Lower Yield Index by 0.4% over the month.

Our share price performance during the month was also encouraging. The share
price rose by 0.9%, reducing the discount to net asset value per share from 2.9%
to just 0.3%.

The best performing sectors over the month were Construction & Building
Materials (helped by a benign Budget for the housebuilders), Oil & Gas (helped
by a positive strategy presentation by BP) and Aerospace & Defence. The share
price of Man Group was particularly strong due to a positive trading update
which led to significant upgrades to profit forecasts.

The worst performing sectors over the month were the cyclical areas of IT
Hardware, Automobiles & Parts, Steel & Other Metals and Insurance. The share
prices of Royal & Sun Alliance, Boots and Antofagasta (none of which are held in
the portfolio) were particularly weak.

Key transactions during the period included adding to existing holdings in HSBC
Holdings and Inchcape as well as establishing new holdings in Aviva, Rotork and
IMI. Holdings were significantly reduced in Gallaher and BT, and sold in
Kingfisher and Reuters.


OUTLOOK

Despite the increased likelihood of a further increase in interest rates,
corporate newsflow remains generally favourable. However, the continued threat
of terrorism remains a cloud over investor sentiment. The recent bounce in the
US$ from previously oversold levels is also helpful to the translation of
profits, cash flow and dividends from multi-national companies for
sterling-based investors.

We have maintained gearing at 4.9%.



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.


                                                                                        31/03/04                29/02/04

NET ASSET VALUE                                                                           230.6p                  234.9p

MID-MARKET SHARE PRICE                                                                  31/03/04                29/02/04
Ordinary Shares                                                                           230.0p                  228.0p
Dividend Yield (%)                                                                           3.5                     3.5
Discount/(Premium) (%)                                                                       0.3                     2.9
Gearing (%)*                                                                                 4.9                     4.8

*Based on total assets of £96.2 million (£97.9 million).


LARGEST HOLDINGS (market value £63.7 million equal to 66.3% of total portfolio)

                                                                                         £'000's    % of portfolio

HSBC Holdings                                                                              7,833           8.2
GlaxoSmithKline                                                                            4,592           4.8
Royal Bank of Scotland                                                                     4,587           4.8
BP                                                                                         4,483           4.7
Shell Transport and Trading                                                                4,357           4.5
AstraZeneca                                                                                4,168           4.3
Vodafone Group                                                                             3,716           3.9
Barclays                                                                                   3,332           3.4
Scottish & Southern Energy                                                                 2,961           3.1
Northern Rock                                                                              2,285           2.4
GUS                                                                                        2,046           2.1
Tate & Lyle                                                                                2,001           2.1
Lloyds TSB Group                                                                           1,656           1.7
Imperial Tobacco                                                                           1,585           1.6
Morrison (W) Supermarkets                                                                  1,528           1.6
Aviva                                                                                      1,387           1.4
Wolseley                                                                                   1,361           1.4
MMO2                                                                                       1,311           1.4
BPB                                                                                        1,308           1.4
Gallaher                                                                                   1,269           1.3
Associated British Foods                                                                   1,224           1.3
Standard Chartered                                                                         1,213           1.3
Vardy                                                                                      1,196           1.2
William Hill                                                                               1,172           1.2
EMAP                                                                                       1,150           1.2



FINANCIAL CALENDAR

Half-year end 31 March 2004

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