UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
-------------------------------
Investment Company Act file number 811-05767
Scudder Strategic Municipal Income Trust
----------------------------------------
(Exact name of registrant as specified in charter)
222 South Riverside Plaza
Chicago, IL 60606
-----------------
(Address of principal executive offices) (Zip code)
Salvatore Schiavone
Two International Place
Boston, Massachusetts 02110
---------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 295-2663
--------------
Date of fiscal year end: 11/30
-----
Date of reporting period: 8/31/04
-------
Form N-Q is to be used by registered management investment companies, other than
small business investment companies registered on Form N-5 (ss.ss. 239.24 and
274.5 of this chapter), to file reports with the Commission, not later than 60
days after the close of the first and third fiscal quarters, pursuant to rule
30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-4). The
Commission may use the information provided on Form N-Q in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. The OMB has reviewed this collection of information under the
clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS
Scudder Strategic Municipal Income Trust
Investment Portfolio as of August 31, 2004 (Unaudited)
------------------------------------------------------------------------------------------------------------------
Principal
Amount ($) Value ($)
-------------------------------------------
Municipal Investments 150.5%
Alabama 2.0%
Alabama, Sales & Special Tax Revenue, Public School
and College Authority, Series C, 5.625%, 7/1/2013 1,000,000 1,134,350
Huntsville, AL, Hospital & Healthcare Revenue, Health
Care Authority, Series A, 5.75%, 6/1/2031 1,500,000 1,554,360
------------
2,688,710
Arizona 1.5%
Arizona, Project Revenue, Health Facilities Authority,
The New Foundation Project, 8.25%, 3/1/2019 2,050,000 1,947,418
California 8.7%
California, Special Assessment Revenue, Golden State
Tobacco Securitization Corp.:
Series B, 5.625%, 6/1/2038 1,890,000 1,957,151
Series 2003-A-1, 6.75%, 6/1/2039 4,500,000 4,207,050
California, State Public Works Board, Lease Revenue,
Department of Corrections, Series C, 5.5%, 6/1/2019 1,920,000 2,085,773
Sacramento County, CA, Sales & Special Tax Revenue,
Bradshaw Road Project, 7.2%, 9/2/2015 1,190,000 1,217,751
Sacramento, CA, Project Revenue, City Financing Authority,
Convention Center Hotel, Series A, 6.25%, 1/1/2030 2,000,000 2,017,460
------------
11,485,185
Colorado 6.6%
Arapahoe County, CO, Highway Revenue, Capital
Improvement Trust Fund, Series E-470, Prerefunded,
Zero Coupon, 8/31/2010 5,000,000 3,521,150
Colorado, Hospital & Healthcare Revenue, Portercare
Adventist Health Project, 6.5% , 11/15/2031 1,000,000 1,092,610
Colorado, Transportation/Tolls Revenue, Northwest Parkway
Public Highway Authority, Series D, 7.125%, 6/15/2041 1,150,000 1,221,104
Denver, CO, Airport Revenue:
AMT, Series A, Prerefunded, 7.5% , 11/15/2023 170,000 175,450
AMT, Series A, 7.5% , 11/15/2023 830,000 855,415
Denver, CO, Sales & Special Tax Revenue, Urban
Renewal Authority, AMT, 7.75%, 9/1/2016 1,760,000 1,863,101
------------
8,728,830
Connecticut 2.6%
Greenwich, CT, Multi Family Housing Revenue,
6.35% , 9/1/2027 2,000,000 1,979,740
Mashantucket, CT, Sports, Expo & Entertainment
Revenue, Mashantucket Western Pequot Tribe:
Series B, Zero Coupon, 9/1/2017 2,000,000 1,009,360
Series B, Zero Coupon, 9/1/2018 1,000,000 473,240
------------
3,462,340
District of Columbia 0.8%
District Columbia, Core City GO, Series A,
5.0%, 6/1/2018 (a) 1,000,000 1,061,200
Florida 7.5%
Florida, Industrial Development Revenue, Capital
Travel Agency, Seminole Tribe Convention, Series A,
10.0%, 10/1/2033 2,000,000 2,395,240
Hillsborough County, FL, Industrial Development
Revenue, University Community Hospital Project,
Series A, 5.625%, 8/15/2023 2,000,000 1,972,440
Miami Beach, FL, Health Facilities Authority Hospital
Revenue, Mount Sinai Medical Center, 6.75%, 11/15/2029 1,600,000 1,659,744
Nassau County, FL, Senior Care Revenue, Amelia Island
Care Center Project, Series A, 9.75%, 1/1/2023 1,875,000 1,915,631
Orlando, FL, Special Assessment Revenue, Conroy Road
Interchange Project, Series A, 5.8%, 5/1/2026 1,000,000 1,003,500
Palm Beach County, FL, Hospital & Healthcare Revenue,
Health Facilities Authority, 5.125%, 11/15/2029 1,000,000 944,550
------------
9,891,105
Georgia 1.5%
Americus-Sumter County, GA, Hospital & Healthcare
Revenue, Hospital Authority, South George Methodist,
Series A, 6.375%, 5/15/2029 1,250,000 1,230,763
Brunswick & Glynn County, GA, Development Authority
First Mortgage Revenue, Coastal Community Retirement,
Series A, 7.25%, 1/1/2035 740,000 723,927
------------
1,954,690
Hawaii 1.1%
Hawaii, State GO, Lease, Series CU, 5.75%, 10/1/2011 (a) 1,250,000 1,433,825
Illinois 13.0%
Chicago, IL, Central Station Project, Series A,
Prerefunded, 8.9% , 1/1/2011 1,360,000 1,369,466
Chicago, IL, Core City GO, Board of Education, Series A,
5.75%, 12/1/2017 (a) 1,380,000 1,578,168
Illinois, Core City GO, 5.0%, 6/1/2019 (a) 3,000,000 3,200,070
Illinois, Hospital & Healthcare Revenue, 6.75%,
2/15/2016 2,180,000 2,440,401
Illinois, State GO, Prerefunded, 6.0%, 1/1/2013 (a) 3,315,000 3,829,024
Illinois, Upper River Valley Development Authority,
Solid Waste Recovery Illinois Project, AMT,
5.9%, 2/1/2014 1,750,000 1,729,402
St. Charles, IL, Multi Family Housing Revenue, Wessel
Court Project, AMT, 7.6% , 4/1/2024 1,685,000 1,739,392
University Park, IL, Sales & Special Tax Revenue,
Governors Gateway Industrial Park, 8.5% , 12/1/2011 1,365,000 1,408,407
------------
17,294,330
Indiana 2.2%
Indiana, Senior Care Revenue, Health Facilities
Finance Authority, Franciscan Eldercare Community
Services, 5.875%, 5/15/2029 3,000,000 2,881,230
Iowa 0.9%
Lake City, IA, Senior Care Revenue, Health Care
Facility, Opportunity Living Project,
6.45%, 5/1/2011 1,225,000 1,256,850
Kansas 1.9%
Manhattan, KS, Senior Care Revenue, Meadowlark
Hills Retirement, Series A, 6.5%, 5/15/2028 500,000 501,470
Overland Park, KS, Industrial Development Revenue,
Development Corp., Series A, 7.375%, 1/1/2032 2,000,000 2,044,460
------------
2,545,930
Kentucky 0.8%
Kentucky, Hospital & Healthcare Revenue, Economic
Development Finance Authority, Norton
Healthcare, Inc., Series A, 6.625%, 10/1/2028 1,000,000 1,053,050
Louisiana 2.4%
Morehouse Parish, LA, Pollution Control Revenue,
International Paper Co. Project, Series A,
5.25%, 11/15/2013 3,000,000 3,221,670
Maryland 7.7%
Anne Arundel County, MD, County GO, National
Business Park Project, Prerefunded,
7.375%, 7/1/2028 1,000,000 1,245,860
Anne Arundel County, MD, County REV Lease,
Arundel Mills Project, Prerefunded, 7.1%, 7/1/2029 1,500,000 1,817,970
Maryland, Higher Education Revenue,
Collegiate Housing Foundation:
Series A, 5.75%, 6/1/2019 1,000,000 1,019,200
Series A, 5.75%, 6/1/2031 1,000,000 1,005,170
Maryland, Hospital & Healthcare Revenue, University
of Maryland Medical System, 6.75%, 7/1/2030 1,000,000 1,128,530
Maryland, Project Revenue, Economic
Development Corp., Chesapeake Bay,
Series B, 7.625%, 12/1/2022 4,000,000 3,960,480
------------
10,177,210
Massachusetts 8.0%
Massachusetts, Hospital & Healthcare Revenue,
Health & Educational Facilities Authority, Civic
Investments, Series A, 9.0%, 12/15/2015 2,000,000 2,314,540
Massachusetts, Hospital & Healthcare Revenue,
Partners Healthcare System, Series C, 5.75%, 7/1/2032 1,000,000 1,061,680
Massachusetts, Industrial Development Revenue,
Development Finance Agency, Series A, 7.1%, 7/1/2032 1,980,000 1,916,858
Massachusetts, Project Revenue, Health &
Educational Facilities Authority, Jordan Hospital,
Series E, 6.75%, 10/1/2033 1,790,000 1,872,000
Massachusetts, State GO, Consolidated Loan:
Series B, Prerefunded, 5.0%, 4/1/2016 (a) 915,000 1,002,117
Series B, Refunded, 5.0%, 4/1/2016 (a) 2,260,000 2,475,174
------------
10,642,369
Michigan 4.2%
Kalamazoo, MI, Industrial Development Revenue,
Economic Development Corp., Series A,
7.5%, 5/15/2029 2,000,000 2,070,500
Michigan, Hospital Finance Authority Revenue,
Crittenton Hospital Medical Center, Series B,
1.36%*, 3/1/2014 (b) 600,000 600,000
Saginaw, MI, Hospital & Healthcare Revenue,
Hospital Finance Authority, Covenant Medical
Center, Series F, 6.5%, 7/1/2030 1,000,000 1,076,720
Tawas City, MI, Hospital Finance Authority,
St. Joseph Health Services:
Series A, ETM, 5.6% , 2/15/2013 380,000 413,159
Series A, ETM, 5.75%, 2/15/2023 1,300,000 1,439,984
------------
5,600,363
Missouri 3.2%
St. Louis, MO, County GO, Industrial Development Authority Revenue, St. Louis
Convention
Center, AMT, Series A, 7.2%, 12/15/2028 2,000,000 1,732,800
St. Louis, MO, Industrial Development Revenue,
St. Louis Convention, AMT, Series A,
6.875%, 12/15/2020 1,000,000 865,800
St. Louis, MO, Special Assessment Revenue,
Scullin Redevelopment Area, Series A,
10.0%, 8/1/2010 1,350,000 1,593,851
------------
4,192,451
Nebraska 0.2%
Nebraska, Single Family Housing Revenue, Investment
Finance Authority, AMT, Series A, 6.7%, 9/1/2026 295,000 305,414
Nevada 1.7%
Las Vegas, NV, Transportation/Tolls Revenue,
Las Vegas Monorail Project, 7.375%, 1/1/2030 2,000,000 2,001,160
Nevada, Single Family Housing Revenue:
AMT, Series C, 6.5%, 4/1/2028 240,000 248,407
AMT, Series B2, 7.9%, 10/1/2021 20,000 20,039
------------
2,269,606
New Hampshire 3.4%
New Hampshire, Higher Education Revenue, Health
& Educational Facilities Authority, New Hampshire
College Issue, 7.4%, 1/1/2023 1,000,000 1,088,160
New Hampshire, Hospital & Healthcare Revenue,
Rivermead at Peterborough Retirement
Community, 5.75%, 7/1/2028 1,500,000 1,385,400
New Hampshire, Senior Care Revenue, Higher
Education Revenue, Havenwood Heritage Heights,
7.45%, 1/1/2025 2,000,000 2,028,440
------------
4,502,000
New Jersey 4.5%
New Jersey, Economic Development Authority Revenue,
Motor Vehicle Surplus:
Series A, 5.0%, 7/1/2022 (a) 1,430,000 1,503,058
Series A, 5.0%, 7/1/2023 (a) 1,770,000 1,848,889
New Jersey, Higher Education Revenue, Education
Facilities Authority, Caldwell College,
Series A, 7.25%, 7/1/2025 1,020,000 1,048,081
New Jersey, Resource Recovery Revenue, Tobacco
Settlement Financing Corp., 5.75%, 6/1/2032 1,745,000 1,582,750
------------
5,982,778
New Mexico 2.1%
Farmington, NM, Pollution Control Revenue,
5.8%, 4/1/2022 2,750,000 2,773,238
New York 12.4%
Nassau County, NY, Hospital & Healthcare Revenue,
6.0%, 8/1/2016 (a) 2,825,000 3,241,066
Nassau County, NY, Project Revenue, North Shore
Healthcare Systems Project, Series B,
5.875%, 11/1/2011 845,000 932,145
New York, NY, Core City GO, Series C, 7.0%, 2/1/2010 315,000 321,650
New York, NY, Sales & Special Tax Revenue,
Metropolitan Transportation Authority, Series A,
Prerefunded, 5.125%, 4/1/2019 (a) 1,450,000 1,646,721
New York, NY, Sales & Special Tax Revenue,
Transitional Finance Authority, Series B,
6.0%, 11/15/2013 490,000 567,680
New York, NY, State GO Lease, Higher Education
Revenue, Dormitory Authority, State University,
Prerefunded, 5.125%, 5/15/2021 (a) 1,880,000 2,006,749
New York, NY, Transitional Finance Authority,
Series B, Prerefunded, 6.0%, 11/15/2013 1,510,000 1,773,359
New York, NY, Transitional Finance Authority,
NYC Recovery, Series 3-B, 1.4%*, 11/1/2022 200,000 200,000
New York, NY, Transportation/Tolls Revenue,
Triborough Bridge and Tunnel Authority
Systems, ETM, Series Y, 6.0%, 1/1/2012 5,000,000 5,785,250
------------
16,474,620
North Carolina 1.9%
North Carolina, Electric Revenue, Municipal Power Agency:
Series C, 5.375%, 1/1/2017 1,000,000 1,065,550
Series B, 6.375%, 1/1/2013 1,300,000 1,471,795
------------
2,537,345
North Dakota 0.8%
Grand Forks, ND, Hospital & Healthcare Revenue,
Altru Health Care System, 7.125%, 8/15/2024 1,000,000 1,088,520
Oklahoma 1.0%
Woodward, OK, Hospital & Healthcare Revenue,
Municipal Authority Hospital, 8.5%, 11/1/2014 1,335,000 1,364,690
Pennsylvania 4.5%
Montgomery County, PA, Senior Care Revenue,
Higher Education & Health Authority, Philadelphia
Geriatric Center, Series A, 7.25%, 12/1/2027 2,000,000 2,041,280
Pennsylvania, Higher Education Revenue, Higher
Educational Facilities Authority, Philadelphia College
of Textiles and Science, 6.7%, 4/1/2014 2,000,000 2,099,020
Pennsylvania, Hospital & Healthcare Revenue,
Economic Development Financing Authority, UPMC
Health System, Series A, 6.0%, 1/15/2031 750,000 791,700
Westmoreland County, PA, Senior Care Revenue,
Industrial Development Authority, Health Care
Facilities-Redstone, Series B, 8.125%, 11/15/2030 1,000,000 1,076,290
------------
6,008,290
Rhode Island 1.3%
Rhode Island, Special Assessment Revenue,
Series A, 6.125%, 6/1/2032 2,000,000 1,757,080
South Carolina 7.1%
South Carolina, Hospital & Healthcare Revenue,
Jobs Economic Development Authority, Bon Secours
Health Systems, Inc., Series A, 5.625%, 11/15/2030 2,000,000 2,024,840
South Carolina, Hospital & Healthcare Revenue,
Jobs Economic Development Authority, Palmetto
Health Alliance:
Series C, 7.0%, 8/1/2030 1,545,000 1,699,546
Series A, Prerefunded, 7.375%, 12/15/2021 1,000,000 1,245,220
South Carolina, Transportation/Tolls Revenue,
Series A, 5.375%, 10/1/2024 (a) 4,150,000 4,437,014
------------
9,406,620
South Dakota 1.6%
South Dakota, Hospital & Healthcare Revenue, Sioux
Valley Hospital, Series E, 5.375%, 11/1/2024 2,000,000 2,065,600
Tennessee 1.8%
Johnson City, TN, Hospital & Healthcare Revenue,
Health & Educational Facilities Board Hospital,
Series A, 7.5%, 7/1/2033 2,000,000 2,336,360
Texas 21.5%
Abilene, TX, Senior Care Revenue, Health Facilities
Development, Sears Methodist Retirement
Facilities, Series A, 5.9%, 11/15/2025 2,500,000 2,437,775
Austin, TX, Project Revenue, Bergstrom Landhost
Enterprises, Inc. Airport Hotel Project,
Series A, 6.75%, 4/1/2027 1,995,000 986,747
Crowley, TX, School District GO, 5.125%, 8/1/2025 4,000,000 4,078,360
Hidalgo County, TX, Hospital & Healthcare Revenue,
Mission Hospital, Inc. Project, 6.75%, 8/15/2016 2,000,000 2,055,800
Houston, TX, General Obligation:
Prerefunded, Series A, 5.0%, 3/1/2016 1,365,000 1,485,475
Unrefunded,, 5.0%, 3/1/2016 1,635,000 1,730,549
Houston, TX, School District GO, Series A,
5.0%, 2/15/2024 2,000,000 2,035,080
Houston, TX, Transportation/Tolls Revenue,
Special Facilities, Continental Airlines, Inc.,
AMT, Series E, 6.75%, 7/1/2029 2,000,000 1,536,680
Tarrant County, TX, Hospital & Healthcare Revenue,
Health Facilities Development Corp., 6.7%,
11/15/2030 1,000,000 1,088,190
Texas, Electric Revenue, Lower Colorado River
Authority, Series B, 6.0%, 5/15/2013 (a) 5,000,000 5,715,850
Texas, Industrial Development Revenue, Waste Disposal
Authority, AMT, Series A, 6.1%, 8/1/2024 1,000,000 1,043,970
Travis County, TX, Hospital & Healthcare Revenue,
Ascension Health Credit, Series A, 6.0%, 11/15/2012 (a) 3,860,000 4,395,035
------------
28,589,511
Utah 0.1%
Utah, Single Family Housing Revenue, Housing
Finance Agency, AMT, Series B2, 6.65%, 7/1/2026 70,000 70,448
Virgin Islands 2.6%
Virgin Islands, Sales & Special Tax Revenue,
Public Finance Authority, Series A, 6.375%, 10/1/2019 3,000,000 3,410,040
Virginia 1.6%
Fairfax County, VA, Hospital & Healthcare Revenue,
Economic Development Authority, Greenspring
Retirement Community, Series A, 7.25%, 10/1/2019 2,000,000 2,103,580
West Virginia 1.8%
West Virginia, Hospital & Healthcare Revenue,
Hospital Finance Authority, Charleston Medical
Center, Series A, 6.75%, 9/1/2022 390,000 431,703
West Virginia, Hospital Finance Authority, Charleston
Medical Center, Prerefunded, 6.75%, 9/1/2022 1,610,000 1,957,196
------------
2,388,899
Wisconsin 2.0%
Wisconsin, Hospital & Healthcare Revenue, Health
& Education Facilities Authority, Aurora Health
Care, Inc.:
Series A, 5.6% , 2/15/2029 1,000,000 990,120
6.875% , 4/15/2030 1,000,000 1,086,670
Wisconsin, Hospital & Healthcare Revenue, Memorial
Hospital Oconomowoco Project, Prerefunded,
6.35%, 7/1/2017 600,000 622,182
------------
2,698,972
Total Municipal Investments (Cost $185,563,924) 199,652,367
% of
Net Assets Value ($)
---------- ---------
Total Investment Portfolio (Cost $185,563,924) 150.5 199,652,367
Other Assets and Liabilities, Net 2.3 3,046,977
Preferred Shares, at Redemption Value -52.8 -70,000,000
-----------------------------
Net Assets Applicable to Common Shareholders 100 132,699,344
============
* Variable rate demand notes are securities whose interest rates are reset
periodically at market levels. These securities are often payable on demand and
are shown at their current rate as of August 31, 2004.
(a) Bond is insured by one of these companies:
As a % of total
Insurance coverage investment portfolio
--------------------------------------------------------------------------------
AMBAC AMBAC Assurance Corp. 2.2
--------------------------------------------------------------------------------
FGIC Financial Guaranty Insurance Company 2.9
--------------------------------------------------------------------------------
FSA Financial Security Assurance 5.3
--------------------------------------------------------------------------------
MBIA Municipal Bond Investors Assurance 9.3
--------------------------------------------------------------------------------
(b) Security incorporates a letter of credit from a major bank.
AMT: Subject to alternative minimum tax
ETM: Bonds bearing the description ETM (escrowed to maturity) are collateralized
by US Treasury securities which are held in escrow and used to pay principal and
interest on bonds so designated.
Prerefunded: Bonds which are prerefunded are collateralized by US Treasury
securities which are held in escrow and are used to pay principal and interest
on tax-exempt issues and to retire the bonds in full at the earliest refunding
date.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Scudder Strategic Municipal Income Trust
By: /s/ Julian Sluyters
---------------------------
Julian Sluyters
Chief Executive Officer
Date: October 26, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
Registrant: Scudder Strategic Municipal Income Trust
By: /s/ Julian Sluyters
---------------------------
Julian Sluyters
Chief Executive Officer
Date: October 26, 2004
By: /s/ Paul Schubert
---------------------------
Paul Schubert
Chief Financial Officer
Date: October 26, 2004