Monthly Report

Deutsche Equity Income Trust PLC
12 February 2003


DEUTSCHE EQUITY INCOME TRUST PLC


                      REPORT FOR THE MONTH OF JANUARY 2003

MARKET BACKGROUND


The UK equity market as measured by the FTSE All-Share index fell by a
disappointing 9.1% in capital terms over the month. Our net asset value per
share fell by 8.4% but the share price fell by 7.5% over the same period as the
discount to net asset value reduced from 1.1% to 0.2%.


Large companies underperformed, with the FTSE 100 index falling for an
unprecedented period of 11 consecutive days and by 9.5% in capital terms. The
FTSE Mid 250 and Small Cap Indices fared a little better, falling by 7.0% and
5.0% respectively. Poor performance from financial stocks also resulted in the
FTSE 350 Higher Yield Index underperforming the Lower Yield Index by 2.0% in
capital terms over the month.


Despite fears of a consumer slowdown over Christmas and evidence of further
softness in the UK housing market, the best performing sector was Construction &
Building Materials. Telecoms and Pharmaceutical stocks also performed relatively
well. The worst performing sector was Life Assurance, driven down by increased
concerns regarding the strength of their balance sheets and sustainability of
dividends. Banks were also weak, but several 'defensive' sectors such as
Personal Care & Household and Food Producers also underperformed.


Major purchases during the period included new holdings in Capita, Rank and Wood
Group. Holdings were sold in both Antofagasta and Brambles. Within corporate
bonds, holdings were sold in both EMI and Yell Finance (owner of the Yellow
Pages) but a new position was established in Corus.



OUTLOOK


After a modest recovery at the end of last year, investor sentiment has once
again deteriorated. Corporate newsflow, however, appears to be improving with
recent positive trading updates from AstraZeneca, Imperial Tobacco and Vodafone.
As a result, although a quick resolution to the unstable geopolitical situation
looks unlikely, we continue to believe that the UK equity market looks
attractive at current levels.


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.



                                                                             31/01/03               31/12/02

NET ASSET VALUE                                                              179.8p                 196.2p

MID-MARKET SHARE PRICE                                                     31/01/03              31/12/02

Ordinary Shares                                                            179.5p                194.0p

Dividend Yield (%)                                                         4.2                   3.9

LARGEST HOLDINGS (market value £48.5 million equal to 67.3% of total portfolio)

                                                                                         £'000's      % of portfolio

GlaxoSmithKline                                                                            5,384           7.5

BP                                                                                         4,946           6.9

HSBC Holdings                                                                              4,537           6.3

Royal Bank of Scotland                                                                     3,573           5.0

AstraZeneca                                                                                3,157           4.4

Shell Transport & Trading                                                                  2,478           3.4

Vodafone Group                                                                             2,161           3.0

Imperial Tobacco                                                                           2,001           2.8

Scottish & Southern Energy                                                                 1,900           2.6

BT Group                                                                                   1,702           2.4

Tate & Lyle                                                                                1,487           2.1

HBOS                                                                                       1,439           2.0

Barclays                                                                                   1,211           1.7

Viridian Group                                                                             1,186           1.6

Legal & General                                                                            1,165           1.6

SIG                                                                                        1,128           1.6

Senior                                                                                     1,099           1.5

BPB                                                                                        1,052           1.4

Canary Wharf Group                                                                         1,051           1.4

Prudential                                                                                 1,047           1.4

Debenhams                                                                                  1,036           1.4

MMO2 7.625% 25/1/2012                                                                        990           1.4

Corus Finance 6.75% 20/5/08                                                                  950           1.3

3i Group                                                                                     907           1.3

GUS                                                                                          905           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 Asset Management 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