Monthly Report

Deutsche Equity Income Trust PLC
18 June 2002



                        REPORT FOR THE MONTH OF MAY 2002



MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share Index fell by 1.5% in
capital terms over the month. Our net asset value per share fell by 0.9% but the
share price rose by 1.2% over the same period as the shares moved from close to
parity to a 2.0% premium.

Conditions were once again generally favourable for equity income funds as the
FTSE 350 Higher Yield index outperformed the FTSE 350 Lower Yield index by 4.4%
in capital terms, continuing the trend since the end of last year. The FTSE 100
index (which fell by 1.6% in capital terms) underperformed both the FTSE 250
index (which fell by 1.2%) and the FTSE Small Cap index (which rose by 0.4%).
The best performing sectors over the month were the 'defensive' areas of Tobacco
and Household Goods and the 'cyclical' areas of Steel, Mining, Forestry & Paper
and Aerospace. The worst performing sectors were the 'TMT' areas of Software &
Computer Services and IT Hardware as well as Pharmaceuticals.

Our purchases included buying a new holding in BskyB and adding to existing
holdings in Lattice Group and Prudential. Holdings were sold in National Grid,
Kelda Group and Friends Ivory & Sime.



OUTLOOK

Equity markets have fallen sharply since the month end due to increased tensions
between India and Pakistan combined with lacklustre corporate newsflow. However,
bond markets have begun to rally following recent weakness due a scaling back of
expectations for interest rate increases later in the year. This should
ultimately provide some stability to equity markets in the absence of further
adverse geopolitical events.

As ever, our stock selection and our balanced approach to portfolio construction
will continue to be the key to rewarding our shareholders.


                                                                            31/05/02               30/04/02

NET ASSET VALUE                                                              250.9p                 253.1p

MID-MARKET SHARE PRICE                                                     31/05/02                 30/04/02
Ordinary Shares                                                            256.0p                   253.0p
Dividend Yield (%)                                                         2.9                      3.0

LARGEST HOLDINGS (market value £65.1 million equal to 64.2% of total portfolio)

                                                                                        £'000's       % of portfolio

BP                                                                                         7,180           7.1

GlaxoSmithKline                                                                            6,608           6.5

HSBC Holdings                                                                              5,236           5.2

Royal Bank of Scotland                                                                     4,844           4.8

AstraZeneca                                                                                4,437           4.4

Barclays                                                                                   3,119           3.1

Shell Transport & Trading                                                                  2,970           2.9

Lloyds TSB                                                                                 2,227           2.2

Imperial Tobacco                                                                           2,209           2.2

HBOS                                                                                       2,179           2.2

Vodafone Group                                                                             2,047           2.0

BT Group                                                                                   1,991           2.0

Diageo                                                                                     1,928           1.9

Lattice Group                                                                              1,888           1.9

Forth Ports                                                                                1,871           1.8

Prudential                                                                                 1,832           1.8

Centrica                                                                                   1,734           1.7

Legal & General                                                                            1,657           1.6

Canary Wharf Group                                                                         1,458           1.4

Morrison(W)Supermarket                                                                     1,402           1.4

3i Group                                                                                   1,395           1.4

Senior                                                                                     1,300           1.3

Scottish & Southern Energy                                                                 1,241           1.2

BG Group                                                                                   1,154           1.1

EMAP                                                                                       1,148           1.1
FINANCIAL CALENDAR

Pay interim dividend                                                                              26 June 2002

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