Monthly Report

Deutsche Equity Income Trust PLC
10 July 2002





                       REPORT FOR THE MONTH OF JUNE 2002





MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share index fell by 8.6% in
capital terms over the month, the worst month since September of last year. Our
net asset value per share fell by 7.0% but the share price fell by 9.0% over the
same period as the shares moved from a 2.0% premium to close to parity.

The market was weak across the board with the FTSE 350 Higher Yield index (which
fell by 8.7% in capital terms) marginally underperforming the FTSE 350 Lower
Yield index (which fell by 8.4%), and the FTSE 100 index (which fell by 8.4% in
capital terms) modestly outperforming the FTSE 250 index and the FTSE Small Cap
index (which fell by 9.1% and 10.5% respectively). The best performing sectors
over the month were the 'defensive' areas of Household Goods & Textiles,
Personal Care, Beverages and Pharmaceuticals, as well as the 'cyclical' areas of
Forestry & Paper and Chemicals which benefited from the strengthening of the
euro. The worst performing sectors were the 'TMT' areas of IT Hardware and
Media, although the Insurance and Life Assurance sectors were also weak due to
falling equity markets putting further pressure on already stretched balance
sheets.

Our purchases included buying new holdings in Electrocomponents and Smith &
Nephew and adding to existing holdings in BP and HSBC Holdings. Holdings were
sold in BG Group, United Utilities, Safeway and Rank Group and significantly
reduced in Diageo and Severn Trent.

OUTLOOK

The sharp fall in equity markets has put further pressure on insurance companies
solvency ratios and companies' defined benefit pension schemes, raising fears
that they will be forced sellers in a market where investor confidence is
already low due to increased concerns about the quality of reported profits.
However, bond markets have rallied strongly after being weak earlier in the year
and this should help provide some support to equity markets. In addition,
economic data generally remains robust although a little softer than that
recorded earlier in the year, reducing the need to immediately raise interest
rates.

Our rigorous stock selection and balanced approach to portfolio construction
will continue to be the key to rewarding our shareholders over the longer-term.










                                                                           30/06/02               31/05/02

NET ASSET VALUE                                                              233.2p                 250.9p

MID-MARKET SHARE PRICE                                                     30/06/02              31/05/02
Ordinary Shares                                                            233.0p                256.0p
Dividend Yield (%)                                                         3.2                   2.9

LARGEST HOLDINGS (market value £61.9 million equal to 66.7% of total portfolio)

                                                                                 £'000's         % of portfolio
BP                                                                                7,655           8.2

GlaxoSmithKline                                                                   6,674           7.2

HSBC Holdings                                                                     5,216           5.6

Royal Bank of Scotland                                                            4,663           5.0

AstraZeneca                                                                       4,061           4.4

Barclays                                                                          2,918           3.1

Shell Transport & Trading                                                         2,774           3.0

HBOS                                                                              2,181           2.4

Lloyds TSB                                                                        2,061           2.2

Imperial Tobacco                                                                  2,050           2.2

Centrica                                                                          1,994           2.1

Forth Ports                                                                       1,813           2.0

BT Group                                                                          1,790           1.9

Vodafone Group                                                                    1,784           1.9

Lattice Group                                                                     1,779           1.9

Prudential                                                                        1,649           1.8

Legal & General                                                                   1,432           1.5

Canary Wharf Group                                                                1,351           1.5

Scottish & Southern Energy                                                        1,279           1.4

Morrison(W)Supermarket                                                            1,272           1.4

3i Group                                                                          1,262           1.4

Bunzl                                                                             1,138           1.2

Senior                                                                            1,132           1.2

Diageo                                                                            1,001           1.1

Luminar                                                                           1,000           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 Scheme (a recently established
scheme 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 Asset Management website located at www.deam-uk.com/uk/
invest/.

Issued by Deutsche Equity Income Trust PLC and approved by Deutsche Investment
Trust Managers Limited, 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, values can 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