Monthly Report

Deutsche Equity Income Trust PLC
09 April 2003



                          Deutsche Equity Income Trust



                       REPORT FOR THE MONTH OF MARCH 2003



MARKET BACKGROUND

With investor attention switched to the Iraqi crisis, the UK equity market as
measured by the FTSE All-Share Index fell by 1.3% in capital terms over the
month. Our net asset value per share fell by 1.8% but the share price rose by
1.4% over the same period as the shares moved from a 0.9% discount to a 2.3%
premium.

Large companies outperformed, with the FTSE 100 Index falling by 1.2% in capital
terms, the FTSE Mid 250 Index falling by 1.9% and the FTSE Small Cap Index
falling by a disappointing 3.8%. It was also generally a difficult month for
equity income funds, with the FTSE 350 Higher Yield Index underperforming the
Lower Yield Index by 1.8%, mainly due to a disappointing performance from
Financial stocks.

The best performing sectors over the month were the relatively defensive areas
of Transport, Food & Drug Retailers and Food Producers, although it should be
noted that the big sectors of Pharmaceuticals and Oils also outperformed. Apart
from the Financial stocks, the worst performing sectors were Steel & Other
Metals, Software & Computer Services and Electronic & Electrical Equipment.

Major transactions during the period included a switch out of Shell Transport
into Royal Dutch and the purchase of a new position in GKN. Holdings were sold
in Gallaher and Capital Shopping Centre corporate bonds.



OUTLOOK

Despite the US-led coalition making strong in-roads into Iraq, the threat of
global terrorism remains. In addition, UK manufacturing remains depressed and
there are signs that the boom in UK consumer expenditure of the past few years
is coming to an end. Another concern is that UK Government finances are under
pressure at a time when there is a commitment to increase public expenditure.
However, the dividend yield from UK equities continues to look attractive
relative to other asset classes.

With this uncertain outlook in mind, we continue to 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.






                                                                             31/03/03               28/02/03

NET ASSET VALUE                                                              178.9p                 182.1p

MID-MARKET SHARE PRICE                                                     31/03/03              28/02/03
Ordinary Shares                                                            183.0p                180.5p
Dividend Yield (%)                                                         4.2                   4.2

LARGEST HOLDINGS (market value £50.1 million equal to 69.8% of total portfolio)

                                                                                 £'000's         % of portfolio
GlaxoSmithKline                                                                            5,239           7.3

BP                                                                                         5,195           7.2

HSBC Holdings                                                                              4,926           6.9

Royal Bank of Scotland                                                                     3,803           5.3

AstraZeneca                                                                                3,313           4.6

Royal Dutch Petrol                                                                         3,117           4.3

Vodafone Group                                                                             2,240           3.1

Scottish & Southern Energy                                                                 1,990           2.8

BT Group                                                                                   1,612           2.3

Imperial Tobacco                                                                           1,512           2.1

Tate & Lyle                                                                                1,494           2.1

HBOS                                                                                       1,346           1.9

Barclays                                                                                   1,262           1.8

Viridian Group                                                                             1,251           1.7

Lloyds TSB                                                                                 1,238           1.7

SIG                                                                                        1,221           1.7

Provident                                                                                  1,189           1.7

BPB                                                                                        1,151           1.6

Debenhams                                                                                  1,142           1.6

Legal & General                                                                            1,076           1.5

MMO2 7.625% 25/1/2012                                                                      1,036           1.4

GUS                                                                                        1,033           1.4

Senior                                                                                       962           1.3

Morrison (W) Supermarket                                                                     919           1.3

Bunzl                                                                                        857           1.2
FINNCIAL CALENDAR

Interim results announced                                                                                    21 May 2003



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, 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