Monthly Report

Deutsche Equity Income Trust PLC
14 June 2004

                          Deutsche Equity Income Trust

                        REPORT FOR THE MONTH OF MAY 2004


MARKET BACKGROUND

The UK equity market as measured by the FTSE All-Share Index fell by 1.6% over
the month.  The small and mid-cap indices under-performed, falling 4.5% and 2.5%
respectively, whilst the FTSE 100 Index fell by 1.3%.  The FTSE 350 Higher Yield
Index out-performed the Lower Yield Index by 1.8% over the month.

Investment performance was modestly positive over the month, with our diluted
net asset value per share falling by 1.3%, 0.3% ahead of the FTSE All-Share
Index.  However, our share price performance was very disappointing, falling by
3.2% with the discount to net asset value per share rising from 5.7% to 7.5%.

Defensive areas such as Utilities provided the best performance as investors
grew concerned over the potential impact of interest rate rises in the US and
high oil prices.  General Retailers also performed well due to bid speculation
surrounding Marks & Spencer.  In contrast, IT, Basic Industries and Telecomms
under-performed.

During the month we trimmed both Shell Transport & Trading and GlaxoSmithKline
following a bounce in the share prices from previously depressed levels.  We
also purchased shares in Standard Chartered, which appears attractive on a
long-term view and offers a yield premium over the wider stock market.

OUTLOOK

Despite recent rises in interest rates, corporate newsflow remains generally
favourable.  However, high oil prices and the continued threat of terrorism
remain clouds over investor sentiment.

Our investment philosophy remains unchanged: we use cash return on investment
(CFROI) rather than earnings per share as the principle 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 reasonable level of
income, we are confident that this philosophy will continue to reward
shareholders over the longer term.

GEARING

We have maintained gearing at c. 5%.

                                                                            31/05/04           30/04/04
                                                                              
NET ASSET VALUE                                                               232.4p             235.5p

MID-MARKET SHARE PRICE                                                      31/05/04           30/04/04
Ordinary Shares                                                               215.0p             222.0p
Dividend Yield (%)                                                              3.7                3.6
Discount/(Premium) (%)                                                          7.5                5.7

Gearing (%)*                                                                    4.9                4.8

*Based on net assets of £92.4 million (£93.7 million).


LARGEST HOLDINGS (market value £63.0 million equal to 64.8% 
of total portfolio)

                                                                           £'000's      % of portfolio
HSBC Holdings                                                                7,833        8.0
BP                                                                           4,697        4.8
Royal Bank of Scotland                                                       4,557        4.7
AstraZeneca                                                                  4,198        4.3
Vodafone Group                                                               3,702        3.8
Standard Chartered                                                           3,274        3.4
Scottish & Southern Energy                                                   2,982        3.1
Shell Transport and Trading                                                  2,871        3.0
GlaxoSmithKline                                                              2,752        2.8
Northern Rock                                                                2,606        2.7
GUS                                                                          2,221        2.3
Barclays                                                                     2,217        2.3
Tate & Lyle                                                                  2,033        2.1
Cable & Wireless                                                             1,885        1.9
Imperial Tobacco                                                             1,622        1.7
Inchcape                                                                     1,584        1.6
St Ives                                                                      1,477        1.5
BPB                                                                          1,429        1.5
Aviva                                                                        1,398        1.4
Wolseley                                                                     1,355        1.4
Morrison (W) Supermarkets                                                    1,329        1.4
Gallaher                                                                     1,277        1.3
MMO2                                                                         1,271        1.3
Reckitt Benckiser                                                            1,268        1.3
Associated British Foods                                                     1,210        1.2


FINANCIAL CALENDAR

Interim Dividend Paid                                   25 June 2004

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 and approved by Deutsche Investment Trust Managers Limited, One Appold
Street, London EC2A 2UU, authorised and regulated by the Financial Services
Authority and manager of Deutsche Equity Income Trust PLC.  Investors should
note that the price of shares and the income from them can go down as well as up
and are not guaranteed and investors may not get back the amount they invested.
The use of gearing is likely to lead to volatility in the Net Asset Value (NAV),
meaning that a relatively small movement either down or up in the value of the
Trust's total assets will result in a magnified movement in the same direction
of that NAV.  In extreme circumstances, investors may get nothing back at all if
the fall in value is sufficiently large.


                      This information is provided by RNS
            The company news service from the London Stock Exchange