Monthly Report

Deutsche Equity Income Trust PLC
10 January 2003


                          Deutsche Equity Income Trust

                     REPORT FOR THE MONTH OF DECEMBER 2002


MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share index fell by 5.5% in
capital terms over the month. Our net asset value per share fell by 4.9% but the
share price fell by 7.6% over the same period as the shares moved from a 1.8%
premium to a 1.1% discount to net asset value.

There was little difference in performance across the market in terms of size
(the FTSE 100 index fell by 5.5%, the FTSE Mid 250 index by 5.2% and the FTSE
Small Cap index by 5.1% in capital terms) or by investment style (the FTSE 350
Higher Yield index fell by 5.4% compared with a 5.5% fall in the FTSE 350 Lower
Yield index).

The best performing sectors over the month were the 'defensive' areas of
Tobacco, Personal Care and Electricity, but Oil & Gas stocks also performed well
due to increased geopolitical concerns (Iraq, North Korea, Venezuela). The worst
performing sector over the month was once again Steel & Other Metals, but Life
Assurance, IT Hardware and Aerospace & Defence stocks also significantly
underperformed.

We bought new positions in both Securicor and Tibbett & Britten and increased
holdings in BPB, Barclays and Viridian Group. We sold our positions in both Emap
and De La Rue and reduced holdings in Antofagasta and Wm Morrison Supermarkets
following recent outperformance.

OUTLOOK

Despite the modest setback in equity markets over the past month, investor
sentiment continues to improve from very depressed levels. Combined with
increased purchases of shares by directors and the scope for further interest
rate cuts as the slowing UK housing market impacts consumer spending, we
continue to be cautiously optimistic of a 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.





                                                                                        31/12/02                30/11/02

NET ASSET VALUE                                                                           196.2p                  206.2p


MID-MARKET SHARE PRICE                                                                  31/12/02                30/11/02

Ordinary Shares                                                                           194.0p                  210.0p
Dividend Yield (%)                                                                           3.9                     3.6



LARGEST HOLDINGS (market value £52.7 million equal to 67.9% of total portfolio)

                                                                                         £'000's          % of portfolio

GlaxoSmithKline                                                                            5,610           7.2

BP                                                                                         5,528           7.1

HSBC Holdings                                                                              4,901           6.3

Royal Bank of Scotland                                                                     3,971           5.1

AstraZeneca                                                                                3,410           4.4

Shell Transport & Trading                                                                  2,747           3.5

Imperial Tobacco                                                                           2,272           2.9

Vodafone Group                                                                             2,245           2.9

Scottish & Southern Energy                                                                 2,128           2.7

BT Group                                                                                   1,913           2.5

HBOS                                                                                       1,710           2.2

Tate & Lyle                                                                                1,655           2.1

Legal & General                                                                            1,487           1.9

Barclays                                                                                   1,331           1.7

Viridian Group                                                                             1,224           1.6

Prudential                                                                                 1,207           1.6

Debenhams                                                                                  1,124           1.4

Canary Wharf Group                                                                         1,099           1.4

SIG                                                                                        1,066           1.4

Lloyds TSB                                                                                 1,064           1.4

GUS                                                                                        1,057           1.4

3i Group                                                                                   1,023           1.3

Senior                                                                                     1,015           1.3

MM02 7.625% 25/1/2012                                                                        996           1.3

Centrica                                                                                     974           1.3




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