Date of fiscal year end:
|
11/30
|
Date of reporting period:
|
5/31/2013
|
ITEM 1.
|
REPORT TO STOCKHOLDERS
|
MAY 31, 2013
Semiannual Report
to Shareholders
|
DWS Strategic Municipal Income Trust
Ticker Symbol: KSM
|
4 Performance Summary
6 Portfolio Management Team
6 Portfolio Summary
8 Investment Portfolio
20 Statement of Assets and Liabilities
21 Statement of Operations
22 Statement of Cash Flows
23 Statement of Changes in Net Assets
24 Financial Highlights
26 Notes to Financial Statements
34 Dividend Reinvestment Plan
36 Additional Information
38 Privacy Statement
|
Average Annual Total Returns as of 5/31/13
|
||||||||||||||||
DWS Strategic Municipal Income Trust
|
6-Month‡
|
1-Year
|
5-Year
|
10-Year
|
||||||||||||
Based on Net Asset Value(a)
|
-0.19 | % | 9.63 | % | 11.65 | % | 8.54 | % | ||||||||
Based on Market Price(a)
|
-3.49 | % | 4.06 | % | 12.74 | % | 8.78 | % | ||||||||
Barclays Municipal Bond Index(b)
|
-1.09 | % | 3.05 | % | 5.70 | % | 4.68 | % | ||||||||
Morningstar Closed-End High-Yield Municipal Funds Category(c)
|
0.50 | % | 9.58 | % | 7.86 | % | 6.41 | % |
Net Asset Value and Market Price
|
||||||||
As of 5/31/13
|
As of 11/30/12
|
|||||||
Net Asset Value
|
$ | 13.98 | $ | 14.46 | ||||
Market Price
|
$ | 14.48 | $ | 15.49 |
Distribution Information
|
||||
Six Months as of 5/31/13:
Income Dividends (common shareholders)
|
$ | .46 | ||
May Income Dividend (common shareholders)
|
$ | .0770 | ||
Current Annualized Distribution Rate (Based on Net Asset Value) as of 5/31/13†
|
6.61 | % | ||
Current Annualized Distribution Rate (Based on Market Price) as of 5/31/13†
|
6.38 | % | ||
Tax Equivalent Distribution Rate (Based on Net Asset Value) as of 5/31/13†
|
10.17 | % | ||
Tax Equivalent Distribution Rate (Based on Market Price) as of 5/31/13†
|
9.82 | % |
Principal Amount ($)
|
Value ($)
|
|||||||
Municipal Bonds and Notes 138.3%
|
||||||||
Arizona 1.9%
|
||||||||
Arizona, Project Revenue, Health Facilities Authority, The New Foundation Project, 8.25%, 3/1/2019
|
1,145,000 | 1,151,824 | ||||||
Maricopa County, AZ, Pollution Control Corp. Revenue, El Paso Electric Co. Project, Series B, 7.25%, 4/1/2040
|
1,570,000 | 1,843,274 | ||||||
2,995,098 | ||||||||
California 14.0%
|
||||||||
California, Health Facilities Financing Authority Revenue, Catholic Healthcare West, Series A, 6.0%, 7/1/2034
|
1,000,000 | 1,189,210 | ||||||
California, M-S-R Energy Authority, Series B, 7.0%, 11/1/2034
|
1,310,000 | 1,817,756 | ||||||
California, Morongo Band of Mission Indians, Enterprise Casino Revenue, Series B, 144A, 6.5%, 3/1/2028
|
1,000,000 | 1,125,510 | ||||||
California, South Bayside Waste Management Authority, Solid Waste Enterprise, Shoreway Environmental, Series A, 6.25%, 9/1/2029
|
1,425,000 | 1,629,858 | ||||||
California, Special Assessment Revenue, Golden State Tobacco Securitization Corp., Series 2003-A-1, Prerefunded, 6.75%, 6/1/2039
|
4,000,000 | 4,000,000 | ||||||
California, State General Obligation:
|
||||||||
5.25%, 4/1/2035
|
1,230,000 | 1,393,787 | ||||||
5.5%, 3/1/2040
|
1,000,000 | 1,144,780 | ||||||
5.75%, 4/1/2031
|
1,000,000 | 1,163,850 | ||||||
6.0%, 4/1/2038
|
1,000,000 | 1,184,970 | ||||||
6.5%, 4/1/2033
|
1,950,000 | 2,403,609 | ||||||
California, State Public Works Board Lease Revenue, Capital Projects, Series I-1, 6.375%, 11/1/2034
|
1,000,000 | 1,228,610 | ||||||
California, State Public Works Board Lease Revenue, Riverside Campus Project, Series B, 6.125%, 4/1/2028
|
2,000,000 | 2,409,840 | ||||||
Sacramento County, CA, Sales & Special Tax Revenue, Bradshaw Road Project, 7.2%, 9/2/2015
|
420,000 | 424,498 | ||||||
San Buenaventura, CA, Community Memorial Health Systems, 7.5%, 12/1/2041
|
500,000 | 609,130 | ||||||
21,725,408 | ||||||||
Colorado 0.8%
|
||||||||
Colorado, Public Energy Authority, Natural Gas Purchased Revenue, 6.25%, 11/15/2028, GTY: Merrill Lynch & Co., Inc.
|
635,000 | 798,074 | ||||||
Colorado, State Health Facilities Authority Revenue, Covenant Retirement Communities, Series A, 5.0%, 12/1/2033
|
440,000 | 461,538 | ||||||
1,259,612 | ||||||||
Connecticut 2.3%
|
||||||||
Connecticut, Harbor Point Infrastructure Improvement District, Special Obligation Revenue, Harbor Point Project, Series A, 7.875%, 4/1/2039
|
2,000,000 | 2,264,880 | ||||||
Mashantucket, CT, Mashantucket Western Pequot Tribe, Special Revenue, Series A, 144A, 6.5%, 9/1/2031*
|
705,000 | 328,629 | ||||||
Mashantucket, CT, Sports Expo & Entertainment Revenue, Mashantucket Western Pequot Tribe:
|
||||||||
Series B, 144A, Zero Coupon, 9/1/2017*
|
2,000,000 | 635,600 | ||||||
Series B, 144A, Zero Coupon, 9/1/2018*
|
1,000,000 | 299,500 | ||||||
3,528,609 | ||||||||
Florida 8.8%
|
||||||||
Florida, Capital Region Community Development District, Capital Improvement Revenue, Series A, 7.0%, 5/1/2039
|
480,000 | 462,230 | ||||||
Florida, Middle Village Community Development District, Special Assessment, Series A, 6.0%, 5/1/2035
|
1,000,000 | 839,380 | ||||||
Florida, Tolomato Community Development District, Special Assessment:
|
||||||||
Series A-2, Step-up Coupon, 0% to 5/1/2017, 6.61% to 5/1/2039
|
50,000 | 38,151 | ||||||
Series A-3, Step-up Coupon, 0% to 5/1/2019, 6.61% to 5/1/2040
|
110,000 | 68,683 | ||||||
Series A-4, Step-up Coupon, 0% to 5/1/2022, 6.61% to 5/1/2040
|
55,000 | 25,553 | ||||||
5.4%, 5/1/2037
|
1,725,000 | 1,711,183 | ||||||
Series 1, 6.55%, 5/1/2027
|
15,000 | 8,129 | ||||||
Series 2, 6.55%, 5/1/2027
|
400,000 | 159,660 | ||||||
Series 3, 5/1/2027*
|
130,000 | 1 | ||||||
Series A-1, 6.55%, 5/1/2027
|
170,000 | 166,590 | ||||||
Florida, Village Community Development District No. 9, Special Assessment Revenue, 5.5%, 5/1/2042
|
175,000 | 187,717 | ||||||
Hillsborough County, FL, Industrial Development Authority Revenue, Health Facilities, University Community Hospital, Series A, Prerefunded, 5.625%, 8/15/2029
|
1,875,000 | 2,312,344 | ||||||
Martin County, FL, Health Facilities Authority, Martin Memorial Medical Center, 5.5%, 11/15/2042
|
335,000 | 363,857 | ||||||
Miami Beach, FL, Health Facilities Authority, Mount Sinai Medical Center:
|
||||||||
6.75%, 11/15/2029
|
1,385,000 | 1,455,870 | ||||||
Prerefunded, 6.75%, 11/15/2029
|
215,000 | 234,604 | ||||||
Miami-Dade County, FL, Aviation Revenue:
|
||||||||
Series A, AMT, 5.0%, 10/1/2030
|
165,000 | 180,360 | ||||||
Series A, AMT, 5.0%, 10/1/2031
|
30,000 | 32,620 | ||||||
Series A, 5.5%, 10/1/2041
|
3,000,000 | 3,382,500 | ||||||
Orlando & Orange County, FL, Expressway Authority Revenue, Series C, 5.0%, 7/1/2035
|
1,080,000 | 1,174,111 | ||||||
Tampa-Hillsborough County, FL, Expressway Authority, Series A, 5.0%, 7/1/2037
|
895,000 | 977,904 | ||||||
13,781,447 | ||||||||
Georgia 6.5%
|
||||||||
Americus-Sumter County, GA, Hospital & Healthcare Revenue, Hospital Authority, South Georgia Methodist, Series A, 6.375%, 5/15/2029
|
1,250,000 | 1,250,950 | ||||||
Atlanta, GA, Airport Revenue, Series C, AMT, 5.0%, 1/1/2037
|
375,000 | 399,900 | ||||||
Atlanta, GA, Tax Allocation, Beltline Project, Series B, 7.375%, 1/1/2031
|
1,000,000 | 1,221,900 | ||||||
Atlanta, GA, Water & Wastewater Revenue, Series A, 6.25%, 11/1/2034
|
2,000,000 | 2,409,800 | ||||||
DeKalb County, GA, Water & Sewer Revenue, Series A, 5.25%, 10/1/2036
|
1,000,000 | 1,138,280 | ||||||
Gainesville & Hall County, GA, Development Authority Retirement Community Revenue, ACTS Retirement Life Community, Series A-2, 6.625%, 11/15/2039
|
1,000,000 | 1,132,530 | ||||||
Georgia, Main Street Natural Gas, Inc., Gas Project Revenue, Series A, 5.5%, 9/15/2024
|
1,220,000 | 1,468,392 | ||||||
Georgia, Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare System, 6.5%, 8/1/2038, INS: AGC
|
1,000,000 | 1,128,260 | ||||||
10,150,012 | ||||||||
Guam 2.1%
|
||||||||
Guam, Government General Obligation, Series A, 7.0%, 11/15/2039
|
1,000,000 | 1,117,920 | ||||||
Guam, Government Waterworks Authority, Water & Wastewater System Revenue, 6.0%, 7/1/2025
|
1,000,000 | 1,038,540 | ||||||
Guam, Power Authority Revenue, Series A, 5.5%, 10/1/2030
|
1,000,000 | 1,115,990 | ||||||
3,272,450 | ||||||||
Hawaii 0.4%
|
||||||||
Hawaii, State Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Inc., 6.5%, 7/1/2039, GTY: Hawaiian Electric Co., Inc.
|
500,000 | 586,315 | ||||||
Idaho 0.2%
|
||||||||
Idaho, Health Facilities Authority Revenue, St. Luke's Regional Medical Center, 6.75%, 11/1/2037
|
305,000 | 354,575 | ||||||
Illinois 7.4%
|
||||||||
Chicago, IL, Airport Revenue, O'Hare International Airport Revenue, Series B, 6.0%, 1/1/2041
|
2,000,000 | 2,365,060 | ||||||
Chicago, IL, General Obligation, Series A, 5.25%, 1/1/2035
|
1,000,000 | 1,085,460 | ||||||
Chicago, IL, Waterworks Revenue, 5.0%, 11/1/2042
|
590,000 | 647,301 | ||||||
Illinois, Finance Authority Revenue, Friendship Village of Schaumburg, Series A, 5.625%, 2/15/2037
|
2,000,000 | 2,023,120 | ||||||
Illinois, Finance Authority Revenue, Park Place of Elmhurst, Series A, 8.0%, 5/15/2030
|
1,000,000 | 1,055,120 | ||||||
Illinois, Finance Authority Revenue, The Admiral at Lake Project, Series A, 8.0%, 5/15/2040
|
1,000,000 | 1,197,770 | ||||||
Illinois, Finance Authority Revenue, Three Crowns Park Plaza, Series A, 5.875%, 2/15/2038
|
1,000,000 | 1,025,740 | ||||||
Illinois, Metropolitan Pier & Exposition Authority Revenue, McCormick Place Project, Series A, 5.0%, 6/15/2042
|
300,000 | 325,764 | ||||||
Illinois, Railsplitter Tobacco Settlement Authority, 6.0%, 6/1/2028
|
365,000 | 435,919 | ||||||
Illinois, State Finance Authority Revenue, Trinity Health Corp., Series L, 5.0%, 12/1/2030
|
1,000,000 | 1,125,510 | ||||||
Illinois, Upper River Valley Development Authority, Solid Waste Disposal Revenue, Waste Recovery Project, AMT, 5.9%, 2/1/2014, GTY: GreenGold Ray Energies, Inc.
|
170,000 | 170,274 | ||||||
11,457,038 | ||||||||
Indiana 1.7%
|
||||||||
Indiana, Finance Authority Hospital Revenue, Deaconess Hospital Obligation, Series A, 6.75%, 3/1/2039
|
525,000 | 614,476 | ||||||
Indiana, State Finance Authority Revenue, Community Foundation of Northwest Indiana, 5.0%, 3/1/2041
|
1,000,000 | 1,055,390 | ||||||
Vigo County, IN, Hospital Authority Revenue, Union Hospital, Inc., 144A, 5.7%, 9/1/2037
|
1,000,000 | 1,041,480 | ||||||
2,711,346 | ||||||||
Iowa 1.7%
|
||||||||
Iowa, Finance Authority Retirement Community Revenue, Edgewater LLC Project, 6.5%, 11/15/2027
|
1,000,000 | 1,061,270 | ||||||
Iowa, State Finance Authority Midwestern Disaster Area Revenue, Fertilizer Co. Project, 5.25%, 12/1/2025
|
575,000 | 593,751 | ||||||
Iowa, State Finance Authority, Wellness Facilities Revenue, Community Marshalltown Project, 0.17%**, 1/1/2031, LOC: Northern Trust Co.
|
1,000,000 | 1,000,000 | ||||||
2,655,021 | ||||||||
Kansas 0.2%
|
||||||||
Lenexa, KS, Health Care Facility Revenue, Lakeview Village, Inc. Project, 7.25%, 5/15/2039
|
300,000 | 335,124 | ||||||
Kentucky 4.1%
|
||||||||
Kentucky, Economic Development Finance Authority, Hospital Facilities Revenue, Owensboro Medical Health Systems, Series A, 6.5%, 3/1/2045
|
2,000,000 | 2,337,880 | ||||||
Kentucky, Economic Development Finance Authority, Louisville Arena Project Revenue, Series A-1, 6.0%, 12/1/2033, INS: AGC
|
365,000 | 394,609 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Health Systems Revenue, Norton Healthcare, Inc., 5.0%, 10/1/2030
|
3,425,000 | 3,581,317 | ||||||
6,313,806 | ||||||||
Louisiana 3.7%
|
||||||||
Louisiana, Local Government Environmental Facilities, Community Development Authority Revenue, 6.75%, 11/1/2032
|
1,000,000 | 1,135,840 | ||||||
Louisiana, St. John Baptist Parish Revenue, Marathon Oil Corp., Series A, 5.125%, 6/1/2037
|
1,500,000 | 1,583,370 | ||||||
Morehouse Parish, LA, Pollution Control Revenue, International Paper Co. Project, Series A, 5.25%, 11/15/2013
|
3,000,000 | 3,061,200 | ||||||
5,780,410 | ||||||||
Maine 0.8%
|
||||||||
Maine, Health & Higher Educational Facilities Authority Revenue, Maine General Medical Center, 6.75%, 7/1/2036
|
1,000,000 | 1,200,150 | ||||||
Maryland 4.1%
|
||||||||
Maryland, Economic Development Corp., Pollution Control Revenue, Potomac Electric Power Co., 6.2%, 9/1/2022
|
1,500,000 | 1,827,810 | ||||||
Maryland, State Economic Development Corp. Revenue, Senior Lien Project, Chesapeake Bay:
|
||||||||
Series A, 5.0%, 12/1/2031
|
1,000,000 | 659,750 | ||||||
Series B, 5.25%, 12/1/2031
|
1,000,000 | 689,650 | ||||||
Maryland, State Health & Higher Educational Facilities Authority Revenue, Anne Arundel Health Systems, Series A, 6.75%, 7/1/2039
|
500,000 | 615,725 | ||||||
Maryland, State Health & Higher Educational Facilities Authority Revenue, Washington County Hospital:
|
||||||||
5.75%, 1/1/2033
|
1,000,000 | 1,077,580 | ||||||
6.0%, 1/1/2028
|
1,385,000 | 1,514,761 | ||||||
6,385,276 | ||||||||
Massachusetts 4.2%
|
||||||||
Massachusetts, Development Finance Agency, Senior Living Facility Revenue, Groves-Lincoln:
|
||||||||
Series A, 7.75%, 6/1/2039
|
250,000 | 117,510 | ||||||
Series A, 7.875%, 6/1/2044
|
250,000 | 117,510 | ||||||
Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032
|
1,715,000 | 1,715,858 | ||||||
Massachusetts, Project Revenue, Health & Educational Facilities Authority, Jordan Hospital, Series E, 6.75%, 10/1/2033
|
1,790,000 | 1,812,196 | ||||||
Massachusetts, State Development Finance Agency Revenue, Linden Ponds, Inc. Facility:
|
||||||||
Series B, 11/15/2056*
|
505,485 | 3,559 | ||||||
Series A-2, 5.5%, 11/15/2046
|
101,629 | 81,481 | ||||||
Series A-1, 6.25%, 11/15/2039
|
1,903,948 | 1,743,559 | ||||||
Massachusetts, State Health & Educational Facilities Authority Revenue, Milford Regional Medical Center, Series E, 5.0%, 7/15/2037
|
950,000 | 952,926 | ||||||
6,544,599 | ||||||||
Michigan 6.0%
|
||||||||
Detroit, MI, Water & Sewerage Department, Sewerage Disposal System Revenue, Series A, 5.25%, 7/1/2039
|
280,000 | 298,841 | ||||||
Detroit, MI, Water Supply Systems Revenue, Series A, 5.75%, 7/1/2037
|
1,000,000 | 1,102,750 | ||||||
Kalamazoo, MI, Economic Development Corp. Revenue, Limited Obligation, Heritage Community, 5.5%, 5/15/2036
|
1,000,000 | 999,970 | ||||||
Kentwood, MI, Economic Development, Limited Obligation, Holland Home, Series A, 5.375%, 11/15/2036
|
2,000,000 | 2,032,520 | ||||||
Michigan, State Building Authority Revenue, Facilities Program, Series I-A, 5.5%, 10/15/2045
|
2,000,000 | 2,250,160 | ||||||
Royal Oak, MI, Hospital Finance Authority Revenue, William Beaumont Hospital, 8.25%, 9/1/2039
|
1,000,000 | 1,264,950 | ||||||
Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services, Series A, ETM, 5.75%, 2/15/2023
|
1,300,000 | 1,305,902 | ||||||
9,255,093 | ||||||||
Minnesota 0.8%
|
||||||||
Minneapolis, MN, Health Care Systems Revenue, Fairview Health Services, Series A, 6.75%, 11/15/2032
|
1,000,000 | 1,207,050 | ||||||
Mississippi 1.2%
|
||||||||
Lowndes County, MS, Solid Waste Disposal & Pollution Control Revenue, Weyerhaeuser Co. Project, Series A, 6.8%, 4/1/2022
|
250,000 | 299,275 | ||||||
Mississippi, Business Finance Corp., Pollution Control Revenue, Systems Energy Resources, Inc. Project, 5.875%, 4/1/2022
|
1,000,000 | 1,003,010 | ||||||
Warren County, MS, Gulf Opportunity Zone, International Paper Co., Series A, 6.5%, 9/1/2032
|
435,000 | 495,830 | ||||||
1,798,115 | ||||||||
Missouri 2.1%
|
||||||||
Missouri, State Health & Educational Facilities Authority Revenue, Lutheran Senior Services, Series C, 5.0%, 2/1/2042
|
2,000,000 | 2,037,060 | ||||||
Missouri, State Health & Educational Facilities Authority, Health Facilities Revenue, Lester E Cox Medical Centers, Series A, 5.0%, 11/15/2048
|
740,000 | 783,741 | ||||||
St. Louis, MO, Lambert-St. Louis International Airport Revenue, Series A-1, 6.625%, 7/1/2034
|
415,000 | 484,625 | ||||||
3,305,426 | ||||||||
Nevada 5.9%
|
||||||||
Clark County, NV, School District, Series A, 5.0%, 6/15/2022, INS: FGIC, NATL
|
5,140,000 | 5,938,962 | ||||||
Henderson, NV, Health Care Facility Revenue, Catholic Healthcare West, Series B, 5.25%, 7/1/2031
|
2,000,000 | 2,106,740 | ||||||
Las Vegas Valley, NV, Water District, Series B, 5.0%, 6/1/2037
|
1,000,000 | 1,106,410 | ||||||
9,152,112 | ||||||||
New Hampshire 2.2%
|
||||||||
New Hampshire, Hospital & Healthcare Revenue, Rivermead at Peterborough Retirement Community, 5.75%, 7/1/2028
|
1,500,000 | 1,501,275 | ||||||
New Hampshire, State Business Finance Authority, Solid Waste Disposal Revenue, Waste Management, Inc. Project, AMT, 5.2%, 5/1/2027
|
1,750,000 | 1,901,970 | ||||||
3,403,245 | ||||||||
New Jersey 7.0%
|
||||||||
New Jersey, Economic Development Authority Revenue, Cigarette Tax, Prerefunded, 5.75%, 6/15/2034
|
290,000 | 306,318 | ||||||
New Jersey, Health Care Facilities Financing Authority Revenue, St. Joseph's Health Care System, 6.625%, 7/1/2038
|
715,000 | 814,449 | ||||||
New Jersey, State Economic Development Authority Revenue, School Facilities Construction:
|
||||||||
Series NN, 5.0%, 3/1/2030
|
500,000 | 559,940 | ||||||
Series NN, 5.0%, 3/1/2031
|
275,000 | 306,287 | ||||||
New Jersey, State Economic Development Authority, Continental Airlines, Inc. Project, AMT, 4.875%, 9/15/2019
|
1,000,000 | 1,040,270 | ||||||
New Jersey, State Housing & Mortgage Finance Agency, Multi-Family Housing Revenue, Series 5, AMT, 0.14%**, 11/1/2046, LOC: Citibank NA
|
180,000 | 180,000 | ||||||
New Jersey, State Transportation Trust Fund Authority:
|
||||||||
Series AA, 5.0%, 6/15/2038
|
840,000 | 915,482 | ||||||
Series B, 5.5%, 6/15/2031
|
1,500,000 | 1,741,095 | ||||||
New Jersey, State Turnpike Authority, Series A, 5.0%, 1/1/2038
|
1,190,000 | 1,292,602 | ||||||
New Jersey, Tobacco Settlement Financing Corp., Series 1A, 4.75%, 6/1/2034
|
4,280,000 | 3,757,241 | ||||||
10,913,684 | ||||||||
New York 10.1%
|
||||||||
New York, Metropolitan Transportation Authority Revenue:
|
||||||||
Series D, 5.0%, 11/15/2032
|
1,000,000 | 1,115,160 | ||||||
Series E, 5.0%, 11/15/2042
|
305,000 | 329,934 | ||||||
New York, State Energy Research & Development Authority, Consolidated Edison Co. of New York, Inc., Series A-2, 0.11%**, 5/1/2039, LOC: Mizuho Corporate Bank
|
800,000 | 800,000 | ||||||
New York, State Thruway Authority Revenue, Series I, 5.0%, 1/1/2037
|
270,000 | 296,957 | ||||||
New York & New Jersey, Port Authority, Special Obligation Revenue, JFK International Air Terminal LLC, 6.0%, 12/1/2042
|
680,000 | 791,629 | ||||||
New York & New Jersey Port Authority, One Hundred Forty-Seventh, AMT, 5.0%, 10/15/2023, INS: FGIC, NATL
|
8,260,000 | 9,239,140 | ||||||
New York City, NY, Industrial Development Agency, Special Facility Revenue, American Airlines, JFK International Airport, AMT, 8.0%, 8/1/2028, GTY: AMR Corp.
|
2,000,000 | 2,329,260 | ||||||
New York City, NY, Transitional Finance Authority Revenue, NYC Recovery, Series 1, 0.09%**, 11/1/2022, SPA: Landesbank Hessen-Thuringen
|
840,000 | 840,000 | ||||||
15,742,080 | ||||||||
North Carolina 0.8%
|
||||||||
North Carolina, Medical Care Commission, Health Care Facilities Revenue, University Health Systems, Series D, 6.25%, 12/1/2033
|
1,000,000 | 1,189,270 | ||||||
Ohio 1.8%
|
||||||||
Kent, OH, State University Revenues, General Receipts, Series A, 5.0%, 5/1/2037
|
1,000,000 | 1,105,540 | ||||||
Ohio, American Municipal Power, Inc. Revenue, Fremont Energy Center Project, Series B, 5.0%, 2/15/2037
|
1,575,000 | 1,715,710 | ||||||
2,821,250 | ||||||||
Pennsylvania 3.0%
|
||||||||
Butler County, PA, Hospital Authority Revenue, Butler Health Systems Project, 7.25%, 7/1/2039
|
2,000,000 | 2,419,240 | ||||||
Montgomery County, PA, Industrial Development Authority Revenue, Whitemarsh Continuing Care, 6.25%, 2/1/2035
|
600,000 | 608,304 | ||||||
Philadelphia, PA, Redevelopment Authority Revenue, First Lien Mortgage, Series A, 6.5%, 1/1/2029
|
531,500 | 532,595 | ||||||
Westmoreland County, PA, Industrial Development Authority Revenue, Retirement Community-Redstone, Series A, 5.875%, 1/1/2032
|
1,000,000 | 1,022,980 | ||||||
4,583,119 | ||||||||
Puerto Rico 6.8%
|
||||||||
Commonwealth of Puerto Rico, Aqueduct & Sewer Authority Revenue, Series A, 6.0%, 7/1/2038
|
4,000,000 | 4,107,920 | ||||||
Puerto Rico, Public Buildings Authority Revenue, Series Q, 5.625%, 7/1/2039
|
1,000,000 | 1,011,230 | ||||||
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue:
|
||||||||
Series A, 5.375%, 8/1/2039
|
1,000,000 | 1,050,730 | ||||||
Series A, 6.5%, 8/1/2044
|
2,000,000 | 2,273,640 | ||||||
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue, Convertible Capital Appreciation, Series A, Step-up Coupon, 0% to 8/1/2016, 6.75% to 8/1/2032
|
2,000,000 | 2,048,920 | ||||||
10,492,440 | ||||||||
South Carolina 0.7%
|
||||||||
Hardeeville, SC, Assessment Revenue, Anderson Tract Municipal Improvement District, Series A, 7.75%, 11/1/2039
|
950,000 | 894,292 | ||||||
South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Palmetto Health Alliance, Series C, Prerefunded, 7.0%, 8/1/2030
|
170,000 | 171,918 | ||||||
1,066,210 | ||||||||
Tennessee 1.5%
|
||||||||
Clarksville, TN, Natural Gas Acquisition Corp., Gas Revenue:
|
||||||||
5.0%, 12/15/2017
|
500,000 | 573,660 | ||||||
5.0%, 12/15/2018
|
540,000 | 616,399 | ||||||
Johnson City, TN, Health & Educational Facilities Board Hospital Revenue, Mountain States Health Alliance, Series A, 7.75%, 7/1/2038
|
1,000,000 | 1,205,640 | ||||||
2,395,699 | ||||||||
Texas 16.8%
|
||||||||
Austin, TX, Austin-Bergstrom Landhost Enterprises, Inc., Airport Hotel Project, Series A, 3.375%, 4/1/2027 (a)
|
1,960,000 | 939,232 | ||||||
Austin, TX, Electric Utility System Revenue, 5.0%, 11/15/2040
|
455,000 | 505,082 | ||||||
Brazos River, TX, Harbor Navigation District, Brazoria County Environmental Health, Dow Chemical Co. Project:
|
||||||||
Series B-2, 4.95%, 5/15/2033
|
1,000,000 | 1,081,380 | ||||||
Series A-3, AMT, 5.125%, 5/15/2033
|
1,000,000 | 1,068,510 | ||||||
Central Texas, Regional Mobility Authority Revenue, Series A, 5.0%, 1/1/2043
|
225,000 | 240,723 | ||||||
Central Texas, Regional Mobility Authority Revenue, Senior Lien, 6.0%, 1/1/2041
|
545,000 | 628,766 | ||||||
Dallas-Fort Worth, TX, International Airport Revenue:
|
||||||||
Series F, AMT, 5.0%, 11/1/2035
|
1,000,000 | 1,045,520 | ||||||
Series D, AMT, 5.0%, 11/1/2038
|
2,000,000 | 2,077,160 | ||||||
Houston, TX, Transportation/Tolls Revenue, Special Facilities, Continental Airlines, Inc., Series E, AMT, 6.75%, 7/1/2029
|
2,000,000 | 2,008,660 | ||||||
Matagorda County, TX, Navigation District No. 1, Pollution Control Revenue, AEP Texas Central Co. Project, Series A, 4.4%, 5/1/2030, INS: AMBAC
|
2,250,000 | 2,316,150 | ||||||
North Texas, Tollway Authority Revenue, Toll Second Tier, Series F, 5.75%, 1/1/2033
|
2,000,000 | 2,217,280 | ||||||
Red River, TX, Health Facilities Development Corp., Retirement Facilities Revenue, Sears Methodist Retirement System Obligation Group Project, Series A, 5.45%, 11/15/2038
|
2,410,000 | 2,197,173 | ||||||
San Antonio, TX, Convention Center Hotel Finance Corp., Contract Revenue, Empowerment Zone, Series A, AMT, 5.0%, 7/15/2039, INS: AMBAC
|
1,000,000 | 1,001,240 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility, Mirador Project, Series A, 8.25%, 11/15/2044
|
570,000 | 641,677 | ||||||
Texas, Industrial Development Revenue, Waste Disposal Authority, Series A, AMT, 6.1%, 8/1/2024
|
1,000,000 | 1,004,030 | ||||||
Texas, Love Field Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project, 5.25%, 11/1/2040
|
1,055,000 | 1,136,066 | ||||||
Texas, SA Energy Acquisition Public Facility Corp., Gas Supply Revenue, 5.5%, 8/1/2020
|
2,000,000 | 2,345,000 | ||||||
Texas, State Municipal Gas Acquisition & Supply Corp., III Gas Supply Revenue:
|
||||||||
5.0%, 12/15/2030
|
165,000 | 175,491 | ||||||
5.0%, 12/15/2031
|
335,000 | 355,489 | ||||||
5.0%, 12/15/2032
|
1,000,000 | 1,058,740 | ||||||
Texas, State Transportation Commission, Turnpike Systems Revenue, Series A, 5.0%, 8/15/2041
|
1,280,000 | 1,366,003 | ||||||
Travis County, TX, Health Facilities Development Corp. Revenue, Westminster Manor Health, 7.125%, 11/1/2040
|
510,000 | 601,703 | ||||||
26,011,075 | ||||||||
Virginia 1.7%
|
||||||||
Virginia, Route 460 Funding Corp., Toll Road Revenue, Series A, 5.0%, 7/1/2052
|
1,000,000 | 1,036,380 | ||||||
Washington County, VA, Industrial Development Authority, Hospital Facility Revenue, Mountain States Health Alliance, Series C, 7.75%, 7/1/2038
|
1,370,000 | 1,665,632 | ||||||
2,702,012 | ||||||||
Washington 1.8%
|
||||||||
Washington, State Health Care Facilities Authority Revenue, Series C, 5.375%, 8/15/2028, INS: Radian
|
595,000 | 626,226 | ||||||
Washington, State Health Care Facilities Authority Revenue, Virginia Mason Medical Center, Series A, 6.125%, 8/15/2037
|
2,000,000 | 2,171,340 | ||||||
2,797,566 | ||||||||
Wisconsin 3.2%
|
||||||||
Wisconsin, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, Aurora Health Care, Inc., 6.875%, 4/15/2030
|
1,000,000 | 1,002,820 | ||||||
Wisconsin, State Health & Educational Facilities Authority Revenue, Agnesian Healthcare, Inc., Series B, 5.0%, 7/1/2036
|
500,000 | 549,635 | ||||||
Wisconsin, State Health & Educational Facilities Authority Revenue, Prohealth Care, Inc. Obligation Group, 6.625%, 2/15/2039
|
1,110,000 | 1,281,406 | ||||||
Wisconsin, State Health & Educational Facilities Authority Revenue, Thedacare, Inc., Series A, 5.5%, 12/15/2038
|
1,765,000 | 1,930,310 | ||||||
Wisconsin, University Hospitals & Clinics Authority, Series A, 5.0%, 4/1/2038
|
145,000 | 159,097 | ||||||
4,923,268 | ||||||||
Total Municipal Bonds and Notes (Cost $190,137,291)
|
214,795,010 | |||||||
Municipal Inverse Floating Rate Notes (b) 11.4%
|
||||||||
California 2.9%
|
||||||||
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2027, INS: AGMC (c)
|
2,121,349 | 2,376,602 | ||||||
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2028, INS: AGMC (c)
|
1,930,312 | 2,162,578 | ||||||
Trust: San Diego County, CA, Water Utility Improvements, Certificates of Participation, Series 2008-1104, 144A, 9.304%, 11/1/2015, Leverage Factor at purchase date: 2 to 1
|
||||||||
4,539,180 | ||||||||
New York 4.0%
|
||||||||
New York, State Dormitory Authority, State Personal Income Tax Revenue, Series A, 5.0%, 3/15/2023 (c)
|
5,535,000 | 6,241,143 | ||||||
Trust: New York, State Dormitory Authority Revenue, Secondary Issues, Series 1955-2, 144A, 17.974%, 3/15/2015, Leverage Factor at purchase date: 4 to 1
|
||||||||
Tennessee 4.5%
|
||||||||
Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2024 (c)
|
5,918,585 | 6,972,404 | ||||||
Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-1, 144A, 17.986%, 1/1/2016, Leverage Factor at purchase date: 4 to 1
|
||||||||
Total Municipal Inverse Floating Rate Notes (Cost $15,679,922)
|
17,752,727 |
% of Net Assets
|
Value ($)
|
|||||||
Total Investment Portfolio (Cost $205,817,213)†
|
149.7 | 232,547,737 | ||||||
MTPS, at Liquidation Value
|
(38.9 | ) | (60,475,000 | ) | ||||
Other Assets and Liabilities, Net
|
(4.7 | ) | (7,255,160 | ) | ||||
ARPS, at Liquidation Value
|
(6.1 | ) | (9,525,000 | ) | ||||
Net Assets Applicable to Common Shareholders
|
100.0 | 155,292,577 |
Security
|
Coupon
|
Maturity Date
|
Principal Amount ($)
|
Cost ($)
|
Value ($)
|
||||||||||||
Austin, TX, Austin-Bergstrom Landhost Enterprises, Inc., Airport Hotel Project, Series A (a)
|
3.375 | % |
4/1/2027
|
1,960,000 | 1,960,000 | 939,232 | |||||||||||
Mashantucket, CT, Sports Expo & Entertainment Revenue, Mashantucket Western Pequot Tribe, Series B, 144A*
|
Zero Coupon
|
9/1/2017
|
2,000,000 | 1,417,501 | 635,600 | ||||||||||||
Mashantucket, CT, Sports Expo & Entertainment Revenue, Mashantucket Western Pequot Tribe, Series B, 144A*
|
Zero Coupon
|
9/1/2018
|
1,000,000 | 667,388 | 299,500 | ||||||||||||
Mashantucket, CT, Mashantucket Western Pequot Tribe, Special Revenue, Series A, 144A*
|
6.5 | % |
9/1/2031
|
705,000 | 733,004 | 328,629 | |||||||||||
4,777,893 | 2,202,961 |
Assets
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Municipal Investments (d)
|
$ | — | $ | 232,547,737 | $ | — | $ | 232,547,737 | ||||||||
Total
|
$ | — | $ | 232,547,737 | $ | — | $ | 232,547,737 |
as of May 31, 2013 (Unaudited)
|
||||
Assets
|
||||
Investments:
Investments in securities, at value (cost $205,817,213)
|
$ | 232,547,737 | ||
Cash
|
44,041 | |||
Interest receivable
|
3,224,016 | |||
Other assets
|
2,832 | |||
Deferred offering costs
|
276,691 | |||
Total assets
|
236,095,317 | |||
Liabilities
|
||||
Payable for floating rate notes issued
|
10,615,039 | |||
Distributions payable
|
193 | |||
Accrued management fee
|
116,050 | |||
Accrued Trustees' fees
|
5,658 | |||
Other accrued expenses and payables
|
65,800 | |||
MTPS, at liquidation value (see page 29 for more details)
|
60,475,000 | |||
Total liabilities
|
71,277,740 | |||
ARPS, at liquidation value (see page 29 for more details)
|
9,525,000 | |||
Net assets applicable to common shareholders, at value
|
$ | 155,292,577 | ||
Net Assets Applicable to Common Shareholders Consist of
|
||||
Undistributed net investment income
|
2,751,767 | |||
Net unrealized appreciation (depreciation) on investments
|
26,730,524 | |||
Accumulated net realized gain (loss)
|
(93,051 | ) | ||
Paid-in capital
|
125,903,337 | |||
Net assets applicable to common shareholders, at value
|
$ | 155,292,577 | ||
Net Asset Value
|
||||
Net Asset Value per common share ($155,292,577 ÷ 11,106,707 outstanding shares of beneficial interest, $.01 par value, unlimited number of common shares authorized)
|
$ | 13.98 |
for the six months ended May 31, 2013 (Unaudited)
|
||||
Investment Income
|
||||
Income:
Interest
|
$ | 6,108,771 | ||
Expenses:
Management fee
|
681,153 | |||
Services to shareholders
|
6,368 | |||
Custodian fee
|
3,883 | |||
Professional fees
|
45,696 | |||
Reports to shareholders
|
30,261 | |||
Trustees' fees and expenses
|
6,616 | |||
Interest expense
|
409,001 | |||
Auction service fees
|
12,085 | |||
Stock exchange listing fees
|
11,906 | |||
Offering costs
|
48,327 | |||
Other
|
32,048 | |||
Total expenses
|
1,287,344 | |||
Net investment income
|
4,821,427 | |||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) from investments
|
124,432 | |||
Change in net unrealized appreciation (depreciation) on investments
|
(5,117,608 | ) | ||
Net gain (loss)
|
(4,993,176 | ) | ||
Net increase (decrease) in net assets resulting from operations
|
(171,749 | ) | ||
Distributions to ARPS
|
(10,228 | ) | ||
Net increase (decrease) in net assets applicable to common shareholders
|
$ | (181,977 | ) |
for the six months ended May 31, 2013 (Unaudited)
|
||||
Increase (Decrease) in Cash:
Cash Flows from Operating Activities
|
||||
Net increase (decrease) in net assets resulting from operations (excluding distributions to ARPS)
|
$ | (171,749 | ) | |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided (used) by operating activities:
Purchases of long-term investments
|
(28,124,233 | ) | ||
Net amortization of premium/(accretion of discount)
|
(35,933 | ) | ||
Proceeds from sales and maturities of long-term investments
|
29,053,975 | |||
(Increase) decrease in interest receivable
|
(26,286 | ) | ||
(Increase) decrease in other assets
|
2,851 | |||
(Increase) decrease in receivable for investments sold
|
200,000 | |||
Increase (decrease) in payable for investments purchased — when-issued secuities
|
(902,697 | ) | ||
Increase (decrease) in other accrued expenses and payables
|
(161,981 | ) | ||
Change in net unrealized (appreciation) depreciation on investments
|
5,117,608 | |||
Net realized (gain) loss from investments
|
(124,432 | ) | ||
Cash provided (used) by operating activities
|
4,827,123 | |||
Cash Flows from Financing Activities
|
||||
(Increase) decrease in deferred offering cost on MTPS
|
14,983 | |||
Distributions paid (net of reinvestment of distributions)
|
(4,886,403 | ) | ||
Cash provided (used) by financing activities
|
(4,871,420 | ) | ||
Increase (decrease) in cash
|
(44,297 | ) | ||
Cash at beginning of period
|
88,338 | |||
Cash at end of period
|
$ | 44,041 | ||
Supplemental Disclosure
|
||||
Reinvestment of distributions
|
$ | 250,486 | ||
Interest expense
|
$ | (409,001 | ) |
Increase (Decrease) in Net Assets
|
Six Months Ended May 31, 2013 (Unaudited)
|
Year Ended November 30, 2012
|
||||||
Operations:
Net investment income
|
$ | 4,821,427 | $ | 10,541,641 | ||||
Net realized gain (loss)
|
124,432 | (1,012,969 | ) | |||||
Change in net unrealized appreciation (depreciation)
|
(5,117,608 | ) | 20,288,605 | |||||
Net increase (decrease) in net assets resulting from operations
|
(171,749 | ) | 29,817,277 | |||||
Distributions to ARPS
|
(10,228 | ) | (173,076 | ) | ||||
Net increase (decrease) in net assets applicable to common shareholders
|
(181,977 | ) | 29,644,201 | |||||
Distributions to common shareholders from:
Net investment income
|
(5,126,640 | ) | (10,294,498 | ) | ||||
Fund share transactions:
Net increase resulting from the tender of ARPS
|
— | 2,419,000 | ||||||
Net proceeds from shares issued to common shareholders from reinvestment of distributions
|
250,486 | 534,598 | ||||||
Net increase (decrease) in net assets from Fund share transactions
|
250,486 | 2,953,598 | ||||||
Increase (decrease) in net assets
|
(5,058,131 | ) | 22,303,301 | |||||
Net assets at beginning of period applicable to common shareholders
|
160,350,708 | 138,047,407 | ||||||
Net assets at end of period applicable to common shareholders (including undistributed net investment income of $2,751,767 and $3,067,208, respectively)
|
$ | 155,292,577 | $ | 160,350,708 | ||||
Other Information
|
||||||||
Common shares outstanding at beginning of period
|
11,089,387 | 11,050,828 | ||||||
Shares issued to common shareholders from reinvestment of distributions
|
17,320 | 38,559 | ||||||
Common shares outstanding at end of period
|
11,106,707 | 11,089,387 |
Years Ended November 30,
|
||||||||||||||||||||||||
Six Months Ended 5/31/13 (Unaudited)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||||||
Selected Per Share Data Applicable to Common Shareholders
|
||||||||||||||||||||||||
Net asset value, beginning of period
|
$ | 14.46 | $ | 12.49 | $ | 12.40 | $ | 12.01 | $ | 9.66 | $ | 12.11 | ||||||||||||
Income (loss) from investment operations:
Net investment incomea
|
.43 | .95 | 1.01 | 1.00 | 1.01 | .95 | ||||||||||||||||||
Net realized and unrealized gain (loss)
|
(.45 | ) | 1.75 | .08 | .35 | 2.25 | (2.50 | ) | ||||||||||||||||
Total from investment operations
|
(.02 | ) | 2.70 | 1.09 | 1.35 | 3.26 | (1.55 | ) | ||||||||||||||||
Distributions to ARPS from net investment income (common share equivalent)
|
(.00 | )*** | (.02 | ) | (.02 | ) | (.03 | ) | (.05 | ) | (.24 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from operations
|
(.02 | ) | 2.68 | 1.07 | 1.32 | 3.21 | (1.79 | ) | ||||||||||||||||
Less distributions to common shareholders from:
Net investment income
|
(.46 | ) | (.93 | ) | (.92 | ) | (.93 | ) | (.86 | ) | (.66 | ) | ||||||||||||
Net realized gains
|
— | — | (.06 | ) | — | — | — | |||||||||||||||||
Total distributions
|
(.46 | ) | (.93 | ) | (.98 | ) | (.93 | ) | (.86 | ) | (.66 | ) | ||||||||||||
NAV accretion resulting from ARPS tendered at a discounta
|
— | .22 | — | — | — | — | ||||||||||||||||||
Net asset value, end of period
|
$ | 13.98 | $ | 14.46 | $ | 12.49 | $ | 12.40 | $ | 12.01 | $ | 9.66 | ||||||||||||
Market price, end of period
|
$ | 14.48 | $ | 15.49 | $ | 13.33 | $ | 12.78 | $ | 12.33 | $ | 7.80 | ||||||||||||
Total Return
|
||||||||||||||||||||||||
Based on net asset value (%)c
|
(.19 | )** | 23.77 | 9.32 | 11.18 | 35.09 | (14.99 | )b | ||||||||||||||||
Based on market price (%)c
|
(3.49 | )** | 24.23 | 13.20 | 11.61 | 71.76 | (23.67 | ) | ||||||||||||||||
Ratios to Average Net Assets Applicable to Common Shareholders and Supplemental Data
|
||||||||||||||||||||||||
Net assets, end of period ($ millions)
|
155 | 160 | 138 | 136 | 132 | 106 | ||||||||||||||||||
Ratio of expenses before fee reductions (%) (including interest expense)d,e
|
1.64 | * | 1.30 | 1.29 | 1.32 | 1.48 | 1.90 | |||||||||||||||||
Ratio of expenses after fee reductions (%) (including interest expense)d,f
|
1.64 | * | 1.30 | 1.29 | 1.32 | 1.48 | 1.89 | |||||||||||||||||
Ratio of expenses after fee reductions (%) (excluding interest expense)g
|
1.12 | * | 1.23 | 1.23 | 1.26 | 1.39 | 1.33 | |||||||||||||||||
Ratio of net investment income (%)h
|
6.13 | * | 7.06 | 8.40 | 8.00 | 9.35 | 8.34 | |||||||||||||||||
Portfolio turnover rate (%)
|
12 | ** | 41 | 26 | 26 | 79 | 65 | |||||||||||||||||
Financial Highlights (continued)
|
||||||||||||||||||||||||
Years Ended November 30,
|
||||||||||||||||||||||||
Six Months Ended 5/31/13 (Unaudited)
|
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Senior Securities
|
||||||||||||||||||||||||
Preferred shares information at end of period, aggregate amount outstanding:
ARPS ($ millions)
|
10 | 10 | 70 | 70 | 70 | 70 | ||||||||||||||||||
MTPS ($ millions)
|
60 | 60 | — | — | — | — | ||||||||||||||||||
Asset coverage per share ($)i
|
80,462 | 82,268 | 74,303 | 73,726 | 72,033 | 62,784 | ||||||||||||||||||
Liquidation and market price per share ($)
|
25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 |
a Based on average common shares outstanding during the period.
b Total return would have been lower had certain fees not been reduced.
c Total return based on net asset value reflects changes in the Fund's net asset value during each period. Total return based on market price reflects changes in market price. Each figure assumes that dividend and capital gain distributions, if any, were reinvested. These figures will differ depending upon the level of any discount from or premium to net asset value at which the Fund's shares traded during the period.
d Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities and interest paid to shareholders of MTPS.
e The ratio of expenses before fee reductions (based on net assets of common and preferred shares, including interest expense) were 1.13%, 0.89%, 0.85%, 0.88%, 0.93% and 1.22% for the periods ended May 31, 2013, November 30, 2012, 2011, 2010, 2009 and 2008, respectively.
f The ratio of expenses after fee reductions (based on net assets of common and preferred shares, including interest expense) were 1.13%, 0.89%, 0.85%, 0.88%, 0.93% and 1.21% for the periods ended May 31, 2013, November 30, 2012, 2011, 2010, 2009 and 2008, respectively.
g The ratio of expenses after fee reductions (based on net assets of common and preferred shares, excluding interest expense) were 0.77%, 0.85%, 0.81%, 0.84%, 0.88% and 0.86% for the periods ended May 31, 2013, November 30, 2012, 2011, 2010, 2009 and 2008, respectively.
h The ratio of net investment income after distributions paid to ARPS were 6.12%, 6.94%, 8.23%, 7.80%, 8.92% and 4.01% for the periods ended May 31, 2013, November 30, 2012, 2011, 2010, 2009 and 2008, respectively.
i Asset coverage per share equals net assets of common shares plus the liquidation value of the preferred shares divided by the total number of preferred shares outstanding at the end of the period.
* Annualized
** Not annualized
*** Amount is less than $.005.
|
Automated Information Line
|
DWS Investments Closed-End Fund Info Line
(800) 349-4281
|
|
Web Site
|
www.dws-investments.com
Obtain fact sheets, financial reports, press releases and webcasts when available.
|
|
Written Correspondence
|
Deutsche Investment Management Americas Inc.
345 Park Avenue
New York, NY 10154
|
|
Legal Counsel
|
Vedder Price P.C.
222 North LaSalle Street
Chicago, IL 60601
|
|
Dividend Reinvestment Plan Agent
|
Computershare Inc.
P.O. Box 43078
Providence, RI 02940-3078
|
|
Shareholder Service Agent and Transfer Agent
|
DWS Investments Service Company
P.O. Box 219066
Kansas City, MO 64121-9066
(800) 294-4366
|
|
Custodian
|
State Street Bank and Trust Company
Lafayette Corporate Center
2 Avenue De Lafayette
Boston, MA 02111
|
|
Independent Registered Public Accounting Firm
|
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
|
|
Proxy Voting
|
The fund's policies and procedures for voting proxies for portfolio securities and information about how the fund voted proxies related to its portfolio securities during the 12-month period ended June 30 are available on our Web site — www.dws-investments.com (click on "proxy voting"at the bottom of the page) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the fund's policies and procedures without charge, upon request, call us toll free at (800) 728-3337.
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Portfolio Holdings
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Following the fund's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. This form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330. The fund's portfolio holdings as of the month-end are posted on www.dws-investments.com on or after the last day of the following month. More frequent posting of portfolio holdings information may be made from time to time on www.dws-investments.com.
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Investment Management
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Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is part of Deutsche Asset & Wealth Management, is the investment advisor for the fund. DIMA and its predecessors have more than 80 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients.
DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution engaged in a wide variety of financial services, including investment management, retail, private and commercial banking, investment banking and insurance.
DWS Investments is the retail brand name in the U.S. for the asset management activities of Deutsche Bank AG and DIMA. As such, DWS is committed to delivering the investing expertise, insight and resources of this global investment platform to American investors.
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NYSE Symbol
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KSM
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CUSIP Number
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Common Shares
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23338T 101
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Auction Rate Preferred Shares
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23338T 200
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FACTS
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What Does DWS Investments Do With Your Personal Information?
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Why?
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Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do.
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What?
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The types of personal information we collect and share can include:
• Social Security number
• Account balances
• Purchase and transaction history
• Bank account information
• Contact information such as mailing address, e-mail address and telephone number
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How?
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All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information, the reasons DWS Investments chooses to share and whether you can limit this sharing.
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Reasons we can share your personal information
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Does DWS Investments share?
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Can you limit this sharing?
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For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders or legal investigations
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Yes
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No
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For our marketing purposes — to offer our products and services to you
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Yes
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No
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For joint marketing with other financial companies
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No
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We do not share
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For our affiliates' everyday business purposes — information about your transactions and experiences
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No
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We do not share
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For our affiliates' everyday business purposes — information about your creditworthiness
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No
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We do not share
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For non-affiliates to market to you
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No
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We do not share
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Questions?
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Call (800) 728-3337 or e-mail us at dws-investments.info@dws.com
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Who we are
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Who is providing this notice?
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DWS Investments Distributors, Inc.; Deutsche Investment Management Americas Inc.; DeAM Investor Services, Inc.; DWS Trust Company; the DWS Funds
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What we do
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How does DWS Investments protect my personal information?
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To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
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How does DWS Investments collect my personal information?
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We collect your personal information, for example. When you:
• open an account
• give us your contact information
• provide bank account information for ACH or wire transactions
• tell us where to send money
• seek advice about your investments
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Why can't I limit all sharing?
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Federal law gives you the right to limit only
• sharing for affiliates' everyday business purposes — information about your creditworthiness
• affiliates from using your information to market to you
• sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing.
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Definitions
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Affiliates
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Companies related by common ownership or control. They can be financial or non-financial companies. Our affiliates include financial companies with the DWS or Deutsche Bank ("DB") name, such as DB AG Frankfurt and DB Alex Brown.
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Non-affiliates
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Companies not related by common ownership or control. They can be financial and non-financial companies.
Non-affiliates we share with include account service providers, service quality monitoring services, mailing service providers and verification services to help in the fight against money laundering and fraud.
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Joint marketing
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A formal agreement between non-affiliated financial companies that together market financial products or services to you. DWS Investments does not jointly market.
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Rev. 09/2012
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ITEM 2.
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CODE OF ETHICS
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Not applicable.
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ITEM 3.
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AUDIT COMMITTEE FINANCIAL EXPERT
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Not applicable
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ITEM 4.
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PRINCIPAL ACCOUNTANT FEES AND SERVICES
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Not applicable
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ITEM 5.
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AUDIT COMMITTEE OF LISTED REGISTRANTS
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Not applicable
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ITEM 6.
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SCHEDULE OF INVESTMENTS
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Not applicable
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ITEM 7.
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DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
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Not applicable
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ITEM 8.
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PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
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Not applicable
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ITEM 9.
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PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
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Period
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(a)
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(b)
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(c)
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(d)
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|||
Total Number of
Shares Purchased
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Average Price Paid
per Share
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Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
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Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
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December 1 through December 31
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-
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n/a
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n/a
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n/a
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January 1 through January 31
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-
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n/a
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n/a
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n/a
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February 1 through February 28
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-
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n/a
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n/a
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n/a
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|||
March 1 through March 31
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-
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n/a
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n/a
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n/a
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April 1 through April 30
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-
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n/a
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n/a
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n/a
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May 1 through May 31
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-
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n/a
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n/a
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n/a
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Total
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-
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n/a
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n/a
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The Fund may from time to time repurchase shares in the open market.
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ITEM 10.
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SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
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There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Kenneth C. Froewiss, Independent Chairman, DWS Mutual Funds, P.O. Box 78, Short Hills, NJ 07078.
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ITEM 11.
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CONTROLS AND PROCEDURES
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(a)
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The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
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(b)
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There have been no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
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ITEM 12.
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EXHIBITS
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(a)(1)
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Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
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(b)
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Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.
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Registrant:
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DWS Strategic Municipal Income Trust
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By:
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/s/W. Douglas Beck
W. Douglas Beck
President
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Date:
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July 29, 2013
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By:
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/s/W. Douglas Beck
W. Douglas Beck
President
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Date:
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July 29, 2013
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By:
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/s/Paul Schubert
Paul Schubert
Chief Financial Officer and Treasurer
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Date:
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July 29, 2013
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