Monthly Report

Deutsche Equity Income Trust PLC
11 December 2002

                          Deutsche Equity Income Trust

                     REPORT FOR THE MONTH OF NOVEMBER 2002


MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share index rose by 3.3% in
capital terms over the month. Our net asset value per share rose by 2.5% and the
share price by 1.5% over the same period as the premium to net asset value fell
from 2.9% to 1.8%.

However, in contrast to the previous month, the market recovery was skewed
towards small capitalisation stocks, with the FTSE Small Cap index up 7.1% in
capital terms compared with just 3.2% from both the FTSE 100 and FTSE 250
indices. In addition, market conditions were once again not that favourable for
equity income funds, with the FTSE 350 Higher Yield index underperforming the
FTSE 350 Lower Yield index by 1.2% in capital terms over the month.

The best performing sectors over the month were those which produced some of the
largest falls during the market downturn: IT Hardware, Telecoms, Software,
Media, Insurance and Life Assurance. The worst performing sector over the month
was Steel & Other Metals (due to disappointing newsflow from Corus), but many
'defensive' sectors such as Tobacco, Food Producers, Beverages and Utilities
also underperformed.

We have taken advantage of this sector rotation within the UK equity market to
add to our existing positions in Scottish & Southern Energy and Imperial
Tobacco. Holdings were reduced in HBOS, Barclays and Forth Ports and sold in
Yule Catto following recent strong outperformance.



OUTLOOK

Investor sentiment has continued to improve from very 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.

                                                                                        30/11/02                31/10/02

NET ASSET VALUE                                                                           206.2p                  201.1p

MID-MARKET SHARE PRICE                                                                  30/11/02                31/10/02

Ordinary Shares                                                                           210.0p                  207.0p

Dividend Yield (%)                                                                           3.6                     3.6


LARGEST HOLDINGS (market value £55.3 million equal to 67.1% of total portfolio)

                                                                                         £'000's     % of portfolio

GlaxoSmithKline                                                                            5,662           6.8

HSBC Holdings                                                                              5,444           6.6

BP                                                                                         5,418           6.6

Royal Bank of Scotland                                                                     4,503           5.4

AstraZeneca                                                                                3,757           4.5

Vodafone Group                                                                             3,136           3.8

Shell Transport & Trading                                                                  2,801           3.4

Imperial Tobacco                                                                           1,966           2.4

BT Group                                                                                   1,950           2.4

Scottish & Southern Energy                                                                 1,869           2.3

HBOS                                                                                       1,819           2.2

Tate & Lyle                                                                                1,608           1.9

Legal & General                                                                            1,587           1.9

Prudential                                                                                 1,472           1.8

Barclays                                                                                   1,312           1.6

Lloyds TSB                                                                                 1,294           1.6

Debenhams                                                                                  1,243           1.5

Canary Wharf Group                                                                         1,242           1.5

SIG                                                                                        1,141           1.4

3i Group                                                                                   1,097           1.3

GUS                                                                                        1,079           1.3

Centrica                                                                                   1,042           1.3

MM02 7.625% 25/1/2012                                                                        974           1.2

Morrison(W)Supermarket                                                                       970           1.2

Viridian                                                                                     968           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 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