Monthly Report

Deutsche Equity Income Trust PLC
12 November 2002





                          Deutsche Equity Income Trust



                      REPORT FOR THE MONTH OF OCTOBER 2002



MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share index rose by 7.6% in
capital terms over the month. Our net asset value per share rose by 7.1% and the
share price by 9.2% over the same period as the premium to net asset value
increased from 1.0% to 2.9%.

The market recovery was skewed towards large capitalisation stocks, with the
FTSE 100 index up 8.5% in capital terms compared with a more modest recovery in
the FTSE mid 250 index of 3.1% and FTSE Small Cap index of just 0.5%. In
addition, market conditions were generally not that favourable for equity income
funds, with the FTSE 350 Higher Yield index underperforming the FTSE 350 Lower
Yield index by 1.3% in capital terms over the month.

The best performing sectors over the month were those with high betas or with
strong liquidity: Life Assurance, Banks, Software, Telecoms and General
Retailers. Some of the worst performing sectors were IT Hardware, Autos and
Engineering although it should be noted that many 'defensive' sectors such as
Beverages, Food Retailers and Tobacco also failed to participate in the market
rally.

Our purchases included adding to existing holdings in Debenhams and RMC as well
as establishing new positions in Lonmin and P&O Princess. Holdings were sold in
National Grid Transco and reduced in Barclays and BP.



OUTLOOK

Investor sentiment has improved from previously depressed levels and we continue
to be cautiously optimistic of a further recovery in the UK equity market over
the next 12-18 months. However, a quick resolution to the unstable geopolitical
situation still looks unlikely and corporate newsflow continues to be mixed.

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.






                                                                                           31/10/02             30/09/02

NET ASSET VALUE                                                                              201.1p               187.7p
MID-MARKET SHARE PRICE                                                                  31/10/02                30/09/02
Ordinary Shares                                                                           207.0p                  189.5p
Dividend Yield (%)                                                                           3.6                     4.0

LARGEST HOLDINGS (market value £53.3 million equal to 65.1% of total portfolio)

                                                                                         £'000's          % of portfolio
GlaxoSmithKline                                                                            5,742                     7.0

BP                                                                                         5,308                     6.5

HSBC Holdings                                                                              4,922                     6.0

Royal Bank of Scotland                                                                     4,138                     5.0

AstraZeneca                                                                                3,664                     4.5

Shell Transport & Trading                                                                  2,759                     3.4

HBOS                                                                                       2,341                     2.9

Vodafone Group                                                                             2,037                     2.5

Imperial Tobacco                                                                           1,709                     2.1

BT Group                                                                                   1,685                     2.1

Barclays                                                                                   1,656                     2.0

Tate & Lyle                                                                                1,655                     2.0

Legal & General                                                                            1,532                     1.9

Canary Wharf Group                                                                         1,364                     1.7

Centrica                                                                                   1,361                     1.7

Scottish & Southern Energy                                                                 1,341                     1.6

Lloyds TSB                                                                                 1,324                     1.6

Forth Ports                                                                                1,320                     1.6

Prudential                                                                                 1,256                     1.5

Debenhams                                                                                  1,155                     1.4

GUS                                                                                        1,058                     1.3

Viridian Group                                                                             1,021                     1.2

SIG                                                                                        1,003                     1.2

MM02 7.625% 25/1/2012                                                                        962                     1.2

Morrison(W)Supermarket                                                                       959                     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 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 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, 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