Monthly Report

Deutsche Equity Income Trust PLC
17 May 2004

                          Deutsche Equity Income Trust

                       REPORT FOR THE MONTH OF APRIL 2004



MARKET BACKGROUND



The UK equity market as measured by the FTSE All-Share Index rose by 1.8% in
capital terms over the month.  Large-cap stocks led the rally (FTSE 100 Index up
2.4%) whereas both mid- and small-cap stocks posted modest losses.



Our investment performance during the month was good.  Our net asset value per
share rose by 2.1%, 0.3% ahead of the FTSE All-Share Index.  This was
particularly pleasing as it was not a good period for equity income investors,
with the FTSE 350 Higher Yield Index underperforming the Lower Yield Index by
0.6% over the month.



Our share price performance during the month was disappointing.  The share price
fell by 3.5%, with the discount to net asset value per share widening from 0.3%
to 5.7%.



The best performing sectors over the month were the 'defensive' areas of
Personal Care & Household Products, Oil & Gas and Pharmaceuticals & Biotech.
The worst performing sectors over the month were the 'cyclical' areas of Steels
& Other Metals, Mining and IT Hardware.  Mining stocks were particularly weak
due to concerns of an economic slowdown in China negatively impacting high
commodity prices.



Key transactions during the period included establishing new holdings in HBOS
and Cable & Wireless.  Holdings were sold in Lloyds TSB and BT.





OUTLOOK



Despite recent rises 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 continue to maintain gearing at c. 4.8%.



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.




                                                                              30/04/04           31/03/04
                                                                                235.5p             230.6p
NET ASSET VALUE

MID-MARKET SHARE PRICE                                                        30/04/04           31/03/04
Ordinary Shares                                                                 222.0p             230.0p
Dividend Yield (%)                                                                 3.6                3.5
Discount/(Premium) (%)                                                             5.7                0.3
Gearing (%)*                                                                       4.8                4.9

*Based on net assets of £93.7 million (£91.7 million).

LARGEST HOLDINGS (market value £65.7 million equal to 66.2% of total portfolio)

                                                                           £'000's   % of portfolio
HSBC Holdings                                                                7,824        7.9
BP                                                                           4,793        4.8
Shell Transport and Trading                                                  4,767        4.8
Royal Bank of Scotland                                                       4,684        4.7
AstraZeneca                                                                  4,357        4.4
GlaxoSmithKline                                                              4,104        4.1
Vodafone Group                                                               3,954        4.0
Barclays                                                                     3,535        3.6
Scottish & Southern Energy                                                   2,939        3.0
Northern Rock                                                                2,675        2.7
GUS                                                                          2,134        2.1
Tate & Lyle                                                                  2,047        2.1
Imperial Tobacco                                                             1,669        1.7
Inchcape                                                                     1,509        1.5
St Ives                                                                      1,467        1.5
Standard Chartered                                                           1,454        1.5
Aviva                                                                        1,447        1.5
Morrison (W) Supermarkets                                                    1,394        1.4
BPB                                                                          1,338        1.3
Wolseley                                                                     1,332        1.3
Gallaher                                                                     1,314        1.3
MMO2                                                                         1,304        1.3
Reckitt Benckiser                                                            1,258        1.3
Associated British Foods                                                     1,236        1.2
William Hill                                                                 1,210        1.2



FINANCIAL CALENDAR

Interim Results announced                         20 May 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