Monthly report

Deutsche Equity Income Trust PLC
11 August 2003



DEUTSCHE EQUITY INCOME TRUST PLC



                       REPORT FOR THE MONTH OF JULY 2003



MARKET BACKGROUND

The UK equity market made steady progress over the month, with the FTSE
All-Share Index rising by 3.8% in capital terms. However, larger companies
continued to underperform, with the FTSE 100 Index rising by just 3.1% whereas
the FTSE Mid 250 and FTSE Small Cap indices each rose by over 7%. Equity
investors looking for income also fared relatively well, with the FTSE 350
Higher Yield Index outperforming the FTSE 350 Lower Yield Index by 3.1% in
capital terms.

Performance over the month was slightly disappointing, with our net asset value
per share rising by 3.0%. The share price rose by just 0.2% over the same
period, moving from a 1.0% premium to a 1.7% discount to net asset value.

The best performing sectors over the month were the 'cyclical' areas Steel &
Other Metals, IT Hardware and Life Assurance. Mining stocks also performed well
following a modest rally in the US dollar. 'Defensive' sectors generally
performed poorly, with significant underperformance from Tobacco, Utilities,
Pharmaceuticals, Telecoms and Oils.

Major transactions during the period included adding to existing holdings in
Vodafone, Alliance & Leicester and Wm Morrison. New holdings were also
established in both Kesa Electricals and Kingfisher post the demerger. Holdings
were sold in United Utilities, Luminar, Marks & Spencer and Renold and were
significantly reduced in Imperial Tobacco.



OUTLOOK

There have been few shocks in the recent reporting season and we continue to
detect an improvement in corporate profitability and cash generation despite the
adverse impact of a weak US dollar on many large multi-national companies. This
should ultimately result in better dividend growth, providing some support to
the UK equity market following the recent sharp rally.

We construct the portfolio using the most attractive stocks in each sector. Our
principal tool to analyse and value companies remains cash flow return on
investment (CFROI) rather than earnings per share, and we also use cash flow to
predict the sustainability of dividends. This is important given our commitment
to achieve a respectable level of income for shareholders and we are confident
that this investment philosophy will continue to reward shareholders over the
longer term.



                                                                                           31/07/03             30/06/03

NET ASSET VALUE                                                                              213.7p               207.4p

MID-MARKET SHARE PRICE                                                                     31/07/03             30/06/03

Ordinary Shares                                                                              210.0p              209.5p

Dividend Yield (%)                                                                           3.6                     3.6

LARGEST HOLDINGS (market value £62.2 million equal to 72.3% of total portfolio)

                                                                                       £'000's        % of portfolio
HSBC Holdings                                                                              6,691           7.8

BP                                                                                         5,431           6.3

GlaxoSmithKline                                                                            5,418           6.3

Royal Bank of Scotland                                                                     4,689           5.5

AstraZeneca                                                                                3,814           4.4

Shell Transport and Trading                                                                3,426           4.0

Vodafone Group                                                                             3,084           3.6

BT Group                                                                                   2,797           3.3

Scottish & Southern Energy                                                                 2,513           2.9

Tate & Lyle                                                                                2,408           2.8

Lloyds TSB                                                                                 1,988           2.3

Barclays                                                                                   1,779           2.1

SIG                                                                                        1,758           2.0

Imperial Tobacco                                                                           1,641           1.9

National Grid Transco                                                                      1,606           1.9

Legal & General                                                                            1,560           1.8

GUS                                                                                        1,478           1.7

Gallaher                                                                                   1,473           1.7

Morrison (W) Supermarkets                                                                  1,468           1.7

Viridian Group                                                                             1,382           1.6

Provident                                                                                  1,368           1.6

3i Group                                                                                   1,161           1.3

BPB                                                                                        1,155           1.3

Standard Chartered                                                                         1,121           1.3

Vardy (Reg)                                                                                1,013           1.2




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 by Deutsche Equity Income Trust PLC and approved by Deutsche Investment
Trust Managers Limited authorised and 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, the
price of shares and the income from them may 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