nq083113ce-smit.htm
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
 
DWS Strategic Municipal Income Trust
(Exact name of registrant as specified in charter)

345 Park Avenue
New York, NY 10154
(Address of principal executive offices)  (Zip code)
 

Paul Schubert
60 Wall Street
New York, NY 10005
(Name and address of agent for service)
 
Registrant's telephone number, including area code:  (212) 250-3220
 
Date of fiscal year end:  11/30
 
Date of reporting period:  8/31/2013

ITEM 1.
SCHEDULE OF INVESTMENTS


Investment Portfolio   as of August 31, 2013  (Unaudited)

DWS Strategic Municipal Income Trust
 
Principal
Amount ($)
  
Value ($)
  
 
 
Municipal Bonds and Notes 143.9%
  
Arizona 2.1%
  
Arizona, Project Revenue, Health Facilities Authority, The New Foundation Project, 8.25%, 3/1/2019
  
1,145,000
  
1,153,209
  
Maricopa County, AZ, Pollution Control Corp. Revenue, El Paso Electric Co. Project, Series B, 7.25%, 4/1/2040
  
1,570,000
  
1,712,305
  
 
 
2,865,514
  
California 12.1%
  
California, Health Facilities Financing Authority Revenue, Catholic Healthcare West, Series A, 6.0%, 7/1/2034
  
1,000,000
  
1,080,160
  
California, M-S-R Energy Authority, Series B, 7.0%, 11/1/2034
  
1,310,000
  
1,520,661
  
California, Morongo Band of Mission Indians, Enterprise Casino Revenue, Series B, 144A, 6.5%, 3/1/2028
  
1,000,000
  
1,080,280
  
California, South Bayside Waste Management Authority, Solid Waste Enterprise, Shoreway Environmental, Series A, 6.25%, 9/1/2029
  
1,425,000
  
1,524,009
  
California, State General Obligation:
              
 
5.25%, 4/1/2035
  
1,230,000
  
1,262,423
  
 
5.5%, 3/1/2040
  
1,000,000
  
1,034,750
  
 
5.75%, 4/1/2031
  
1,000,000
  
1,068,220
  
 
6.0%, 4/1/2038
  
1,000,000
  
1,107,630
  
 
6.5%, 4/1/2033
  
1,950,000
  
2,269,137
  
California, State Housing Finance Agency, Multi-Family Housing Revenue, Series A, AMT, 0.06% **, 2/1/2041, LOC: Fannie Mae, Freddie Mac
  
250,000
  
250,000
  
California, State Public Works Board Lease Revenue, Capital Projects, Series I-1, 6.375%, 11/1/2034
  
1,000,000
  
1,151,540
  
California, State Public Works Board Lease Revenue, Riverside Campus Project, Series B, 6.125%, 4/1/2028
  
2,000,000
  
2,284,920
  
Sacramento County, CA, Sales & Special Tax Revenue, Bradshaw Road Project, 7.2%, 9/2/2015
  
290,000
  
296,151
  
San Buenaventura, CA, Community Memorial Health Systems, 7.5%, 12/1/2041
  
500,000
  
539,750
  
 
 
16,469,631
  
Colorado 1.2%
  
Colorado, Public Energy Authority, Natural Gas Purchased Revenue, 6.25%, 11/15/2028, GTY: Merrill Lynch & Co., Inc.
  
635,000
  
691,242
  
Colorado, State Health Facilities Authority Revenue, Covenant Retirement Communities, Series A, 5.0%, 12/1/2033
  
440,000
  
389,950
  
Denver, CO, City & County Airport Revenue, Series A, AMT, 5.25%, 11/15/2043
  
600,000
  
576,264
  
 
 
1,657,456
  
Connecticut 2.7%
  
Connecticut, Harbor Point Infrastructure Improvement District, Special Obligation Revenue, Harbor Point Project, Series A, 7.875%, 4/1/2039
  
2,000,000
  
2,154,160
  
Mashantucket, CT, Mashantucket Western Pequot Tribe, 144A, 4.0%, 7/1/2031
  
2,245,069
  
1,532,125
  
 
 
3,686,285
  
District of Columbia 0.7%
  
District of  Columbia, Metropolitan Airport Authority Systems Revenue:
              
 
Series A, AMT, 5.0%, 10/1/2038
  
200,000
  
194,148
  
 
Series A, AMT, 5.0%, 10/1/2043
  
850,000
  
816,757
  
 
 
1,010,905
  
Florida 9.9%
  
Florida, Capital Region Community Development District, Capital Improvement Revenue, Series A, 7.0%, 5/1/2039
  
480,000
  
405,211
  
Florida, Middle Village Community Development District, Special Assessment, Series A, 6.0%, 5/1/2035
  
1,000,000
  
739,770
  
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
  
36,879
  
 
Series A-3, Step-up Coupon, 0% to 5/1/2019, 6.61% to 5/1/2040
  
110,000
  
66,172
  
 
Series A-4, Step-up Coupon, 0% to 5/1/2022, 6.61% to 5/1/2040
  
55,000
  
24,517
  
 
5.4%, 5/1/2037
  
1,725,000
  
1,572,631
  
 
Series 1, 6.55%, 5/1/2027
  
10,000
  
9,525
  
 
Series 2, 6.55%, 5/1/2027
  
400,000
  
149,996
  
 
Series 3, 6.55%, 5/1/2027 *
  
130,000
  
1
  
 
Series A-1, 6.55%, 5/1/2027
  
170,000
  
155,460
  
Florida, Village Community Development District No. 9, Special Assessment Revenue, 5.5%, 5/1/2042
  
175,000
  
170,529
  
Hillsborough County, FL, Industrial Development Authority Revenue, Health Facilities, University Community Hospital, Series A, Prerefunded, 5.625%, 8/15/2029
  
1,875,000
  
2,238,975
  
Martin County, FL, Health Facilities Authority, Martin Memorial Medical Center, 5.5%, 11/15/2042
  
335,000
  
322,498
  
Miami Beach, FL, Health Facilities Authority, Mount Sinai Medical Center:
              
 
6.75%, 11/15/2029
  
1,385,000
  
1,450,192
  
 
Prerefunded, 6.75%, 11/15/2029
  
215,000
  
231,576
  
Miami-Dade County, FL, Aviation Revenue:
              
 
Series A, AMT, 5.0%, 10/1/2030
  
165,000
  
159,294
  
 
Series A, AMT, 5.0%, 10/1/2031
  
30,000
  
28,691
  
 
Series A, 5.5%, 10/1/2041
  
3,000,000
  
3,077,730
  
Orlando & Orange County, FL, Expressway Authority Revenue, Series C, 5.0%, 7/1/2035
  
1,080,000
  
1,057,449
  
Tampa-Hillsborough County, FL, Expressway Authority, Series A, 5.0%, 7/1/2037
  
1,590,000
  
1,542,491
  
 
 
13,439,587
  
Georgia 7.6%
  
Americus-Sumter County, GA, Hospital & Healthcare Revenue, Hospital Authority, South Georgia Methodist, Series A, 6.375%, 5/15/2029
  
1,250,000
  
1,253,275
  
Americus-Sumter County, GA, Hospital Authority, Magnolia Manor Obligated Group, Series A, 6.25%, 5/15/2033
  
1,000,000
  
963,190
  
Atlanta, GA, Airport Revenue, Series C, AMT, 5.0%, 1/1/2037
  
375,000
  
356,636
  
Atlanta, GA, Tax Allocation, Beltline Project, Series B, 7.375%, 1/1/2031
  
1,000,000
  
1,138,510
  
Atlanta, GA, Water & Wastewater Revenue, Series A, 6.25%, 11/1/2034
  
2,000,000
  
2,269,240
  
DeKalb County, GA, Water & Sewer Revenue, Series A, 5.25%, 10/1/2036
  
1,000,000
  
1,015,750
  
Gainesville & Hall County, GA, Development Authority Retirement Community Revenue, ACTS Retirement Life Community, Series A-2, 6.625%, 11/15/2039
  
1,000,000
  
1,050,620
  
Georgia, Main Street Natural Gas, Inc., Gas Project Revenue, Series A, 5.5%, 9/15/2024
  
1,220,000
  
1,306,059
  
Georgia, Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare System, 6.5%, 8/1/2038, INS: AGC
  
1,000,000
  
1,062,640
  
 
 
10,415,920
  
Guam 2.4%
  
Guam, Government General Obligation, Series A, 7.0%, 11/15/2039
  
1,000,000
  
1,050,020
  
Guam, Government Waterworks Authority, Water & Wastewater System Revenue, 6.0%, 7/1/2025
  
1,000,000
  
1,010,090
  
Guam, International Airport Authority, Series C, AMT, 6.375%, 10/1/2043 (a)
  
215,000
  
214,271
  
Guam, Power Authority Revenue, Series A, 5.5%, 10/1/2030
  
1,000,000
  
1,001,690
  
 
 
3,276,071
  
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
  
534,650
  
Idaho 0.2%
  
Idaho, Health Facilities Authority Revenue, St. Luke's Regional Medical Center, 6.75%, 11/1/2037
  
305,000
  
325,664
  
Illinois 7.6%
  
Chicago, IL, Airport Revenue, O'Hare International Airport Revenue, Series B, 6.0%, 1/1/2041
  
2,000,000
  
2,153,180
  
Chicago, IL, General Obligation, Series A, 5.25%, 1/1/2035
  
1,000,000
  
937,740
  
Chicago, IL, Waterworks Revenue, 5.0%, 11/1/2042
  
590,000
  
562,140
  
Illinois, Finance Authority Revenue, Friendship Village of Schaumburg, Series A, 5.625%, 2/15/2037
  
2,000,000
  
1,769,960
  
Illinois, Finance Authority Revenue, Park Place of Elmhurst, Series A, 8.0%, 5/15/2030
  
1,000,000
  
975,140
  
Illinois, Finance Authority Revenue, The Admiral at Lake Project, Series A, 8.0%, 5/15/2040
  
1,000,000
  
1,048,840
  
Illinois, Finance Authority Revenue, Three Crowns Park Plaza, Series A, 5.875%, 2/15/2038
  
1,000,000
  
917,650
  
Illinois, Metropolitan Pier & Exposition Authority Revenue, McCormick Place Project, Series A, 5.0%, 6/15/2042
  
300,000
  
293,700
  
Illinois, Railsplitter Tobacco Settlement Authority, 6.0%, 6/1/2028
  
365,000
  
393,291
  
Illinois, State Finance Authority Revenue, Trinity Health Corp., Series L, 5.0%, 12/1/2030
  
1,000,000
  
1,014,780
  
Illinois, State General Obligation, 5.5%, 7/1/2038
  
130,000
  
123,255
  
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
  
170,979
  
 
 
10,360,655
  
Indiana 1.8%
  
Indiana, Finance Authority Hospital Revenue, Deaconess Hospital Obligation, Series A, 6.75%, 3/1/2039
  
525,000
  
568,853
  
Indiana, State Finance Authority Revenue, Community Foundation of Northwest Indiana, 5.0%, 3/1/2041
  
1,000,000
  
906,580
  
Vigo County, IN, Hospital Authority Revenue, Union Hospital, Inc., 144A, 5.7%, 9/1/2037
  
1,000,000
  
983,060
  
 
 
2,458,493
  
Iowa 1.1%
  
Iowa, Finance Authority Retirement Community Revenue, Edgewater LLC Project, 6.5%, 11/15/2027
  
1,000,000
  
1,009,740
  
Iowa, State Finance Authority, Midwestern Disaster Area Revenue, Fertilizer Co. Project, 5.25%, 12/1/2025
  
575,000
  
501,636
  
 
 
1,511,376
  
Kansas 0.2%
  
Lenexa, KS, Health Care Facility Revenue, Lakeview Village, Inc. Project, 7.25%, 5/15/2039
  
300,000
  
309,753
  
Kentucky 4.2%
  
Kentucky, Economic Development Finance Authority, Hospital Facilities Revenue, Owensboro Medical Health Systems, Series A, 6.5%, 3/1/2045
  
2,000,000
  
2,077,640
  
Kentucky, Economic Development Finance Authority, Louisville Arena Project Revenue, Series A-1, 6.0%, 12/1/2033, INS: AGC
  
365,000
  
373,118
  
Louisville & Jefferson County, KY, Metropolitan Government Health Systems Revenue, Norton Healthcare, Inc., 5.0%, 10/1/2030
  
3,425,000
  
3,319,647
  
 
 
5,770,405
  
Louisiana 4.2%
  
Louisiana, Local Government Environmental Facilities, Community Development Authority Revenue, 6.75%, 11/1/2032
  
1,000,000
  
1,040,440
  
Louisiana, St. John Baptist Parish Revenue, Marathon Oil Corp., Series A, 5.125%, 6/1/2037
  
1,500,000
  
1,454,790
  
Louisiana, Tobacco Settlement Financing Corp. Revenue, Series A, 5.25%, 5/15/2035
  
180,000
  
170,183
  
Morehouse Parish, LA, Pollution Control Revenue, International Paper Co. Project, Series A, 5.25%, 11/15/2013
  
3,000,000
  
3,024,120
  
 
 
5,689,533
  
Maine 1.1%
  
Maine, Health & Higher Educational Facilities Authority Revenue, Maine General Medical Center, 6.75%, 7/1/2036
  
1,000,000
  
1,093,580
  
Maine, State Housing Authority Mortgage Revenue, Series B, AMT, 0.07% **, 11/15/2036, SPA: State Street Bank & Trust Co.
  
400,000
  
400,000
  
 
 
1,493,580
  
Maryland 4.4%
  
Maryland, Economic Development Corp., Pollution Control Revenue, Potomac Electric Power Co., 6.2%, 9/1/2022
  
1,500,000
  
1,757,190
  
Maryland, State Economic Development Corp. Revenue, Senior Lien Project, Chesapeake Bay:
              
 
Series A, 5.0%, 12/1/2031
  
1,000,000
  
579,980
  
 
Series B, 5.25%, 12/1/2031
  
1,000,000
  
579,980
  
Maryland, State Health & Higher Educational Facilities Authority Revenue, Anne Arundel Health Systems, Series A, 6.75%, 7/1/2039
  
500,000
  
580,070
  
Maryland, State Health & Higher Educational Facilities Authority Revenue, Washington County Hospital:
              
 
5.75%, 1/1/2033
  
1,000,000
  
1,013,090
  
 
6.0%, 1/1/2028
  
1,385,000
  
1,432,561
  
 
 
5,942,871
  
Massachusetts 4.8%
  
Massachusetts, Development Finance Agency, Senior Living Facility Revenue, Groves-Lincoln:
              
 
Series A, 7.75%, 6/1/2039
  
250,000
  
17,250
  
 
Series A, 7.875%, 6/1/2044
  
250,000
  
17,250
  
Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032
  
1,675,000
  
1,629,926
  
Massachusetts, Project Revenue, Health & Educational Facilities Authority, Jordan Hospital, Series E, 6.75%, 10/1/2033
  
1,790,000
  
1,790,698
  
Massachusetts, State Development Finance Agency Revenue, Clark University, 0.05% **, 10/1/2038, LOC: TD BankNorth NA
  
600,000
  
600,000
  
Massachusetts, State Development Finance Agency Revenue, Linden Ponds, Inc. Facility:
              
 
Series B, 11/15/2056 *
  
505,485
  
2,826
  
 
Series A-2, 5.5%, 11/15/2046
  
101,629
  
70,261
  
 
Series A-1, 6.25%, 11/15/2039
  
1,903,948
  
1,518,779
  
Massachusetts, State Health & Educational Facilities Authority Revenue, Milford Regional Medical Center, Series E, 5.0%, 7/15/2037
  
950,000
  
845,073
  
 
 
6,492,063
  
Michigan 6.1%
  
Detroit, MI, Water & Sewerage Department, Sewerage Disposal System Revenue, Series A, 5.25%, 7/1/2039
  
280,000
  
242,068
  
Detroit, MI, Water Supply Systems Revenue, Series A, 5.75%, 7/1/2037
  
1,000,000
  
930,180
  
Kalamazoo, MI, Economic Development Corp. Revenue, Limited Obligation, Heritage Community, 5.5%, 5/15/2036
  
1,000,000
  
827,570
  
Kentwood, MI, Economic Development, Limited Obligation, Holland Home, Series A, 5.375%, 11/15/2036
  
2,000,000
  
1,702,960
  
Michigan, State Building Authority Revenue, Facilities Program, Series I-A, 5.5%, 10/15/2045
  
2,000,000
  
2,036,560
  
Royal Oak, MI, Hospital Finance Authority Revenue, William Beaumont Hospital, 8.25%, 9/1/2039
  
1,000,000
  
1,195,810
  
Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services, Series A, ETM, 5.75%, 2/15/2023
  
1,300,000
  
1,305,694
  
 
 
8,240,842
  
Minnesota 0.8%
  
Minneapolis, MN, Health Care Systems Revenue, Fairview Health Services, Series A, 6.75%, 11/15/2032
  
1,000,000
  
1,144,550
  
Mississippi 1.3%
  
Lowndes County, MS, Solid Waste Disposal & Pollution Control Revenue, Weyerhaeuser Co. Project, Series A, 6.8%, 4/1/2022
  
250,000
  
275,495
  
Mississippi, Business Finance Corp., Pollution Control Revenue, Systems Energy Resources, Inc. Project, 5.875%, 4/1/2022
  
1,000,000
  
983,760
  
Warren County, MS, Gulf Opportunity Zone, International Paper Co., Series A, 6.5%, 9/1/2032
  
435,000
  
466,346
  
 
 
1,725,601
  
Missouri 2.2%
  
Missouri, State Health & Educational Facilities Authority Revenue, Lutheran Senior Services, Series C, 5.0%, 2/1/2042
  
2,000,000
  
1,794,980
  
Missouri, State Health & Educational Facilities Authority, Health Facilities Revenue, Lester E Cox Medical Centers, Series A, 5.0%, 11/15/2048
  
740,000
  
682,087
  
St. Louis, MO, Lambert-St. Louis International Airport Revenue, Series A-1, 6.625%, 7/1/2034
  
415,000
  
455,110
  
 
 
2,932,177
  
Nevada 6.8%
  
Clark County, NV, School District, Series A, 5.0%, 6/15/2022, INS: NATL
  
5,140,000
  
5,677,952
  
Henderson, NV, Health Care Facility Revenue, Catholic Healthcare West, Series B, 5.25%, 7/1/2031
  
2,000,000
  
1,991,820
  
Las Vegas Valley, NV, Water District, Series B, 5.0%, 6/1/2037
  
1,565,000
  
1,570,384
  
 
 
9,240,156
  
New Hampshire 2.3%
  
New Hampshire, Hospital & Healthcare Revenue, Rivermead at Peterborough Retirement Community, 5.75%, 7/1/2028
  
1,500,000
  
1,445,550
  
New Hampshire, State Business Finance Authority, Solid Waste Disposal Revenue, Waste Management, Inc. Project, AMT, 5.2%, 5/1/2027
  
1,750,000
  
1,711,377
  
 
 
3,156,927
  
New Jersey 6.5%
  
New Jersey, Economic Development Authority Revenue, Cigarette Tax, Prerefunded, 5.75%, 6/15/2034
  
290,000
  
302,806
  
New Jersey, Health Care Facilities Financing Authority Revenue, St. Joseph's Health Care System, 6.625%, 7/1/2038
  
715,000
  
704,218
  
New Jersey, State Economic Development Authority Revenue, School Facilities Construction, Series NN, 5.0%, 3/1/2030
  
500,000
  
506,415
  
New Jersey, State Economic Development Authority, Continental Airlines, Inc. Project, AMT, 4.875%, 9/15/2019
  
880,000
  
855,897
  
New Jersey, State Transportation Trust Fund Authority:
              
 
Series AA, 5.0%, 6/15/2038
  
840,000
  
827,030
  
 
Series B, 5.5%, 6/15/2031
  
1,500,000
  
1,577,430
  
New Jersey, State Turnpike Authority, Series A, 5.0%, 1/1/2038
  
1,190,000
  
1,186,597
  
New Jersey, Tobacco Settlement Financing Corp., Series 1A, 4.75%, 6/1/2034
  
4,280,000
  
2,931,286
  
 
 
8,891,679
  
New York 9.1%
  
New York, Metropolitan Transportation Authority Revenue:
              
 
Series D, 5.0%, 11/15/2038
  
275,000
  
270,718
  
 
Series E, 5.0%, 11/15/2042
  
305,000
  
297,656
  
New York & New Jersey, Port Authority, Special Obligation Revenue, JFK International Air Terminal LLC, 6.0%, 12/1/2042
  
680,000
  
743,791
  
New York & New Jersey Port Authority, One Hundred Forty-Seventh, AMT, 5.0%, 10/15/2023, INS: NATL
  
8,260,000
  
8,853,150
  
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
  
2,253,200
  
 
 
12,418,515
  
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
  
1,109,220
  
Ohio 1.8%
  
Kent, OH, State University Revenues, General Receipts, Series A, 5.0%, 5/1/2037
  
1,000,000
  
978,210
  
Ohio, American Municipal Power, Inc. Revenue, Fremont Energy Center Project, Series B, 5.0%, 2/15/2037
  
1,575,000
  
1,518,080
  
 
 
2,496,290
  
Pennsylvania 3.2%
  
Butler County, PA, Hospital Authority Revenue, Butler Health Systems Project, 7.25%, 7/1/2039
  
2,000,000
  
2,231,060
  
Montgomery County, PA, Industrial Development Authority Revenue, Whitemarsh Continuing Care, 6.25%, 2/1/2035
  
600,000
  
574,734
  
Philadelphia, PA, Redevelopment Authority Revenue, First Lien Mortgage, Series A, 6.5%, 1/1/2029
  
522,100
  
522,742
  
Westmoreland County, PA, Industrial Development Authority Revenue, Retirement Community-Redstone, Series A, 5.875%, 1/1/2032
  
1,000,000
  
960,890
  
 
 
4,289,426
  
Puerto Rico 7.0%
  
Commonwealth of Puerto Rico, Aqueduct & Sewer Authority Revenue, Series A, 6.0%, 7/1/2038
  
4,000,000
  
3,014,640
  
Puerto Rico, Electric Power Authority Revenue, Series A, 6.75%, 7/1/2036
  
1,605,000
  
1,400,314
  
Puerto Rico, Public Buildings Authority Revenue, Series Q, 5.625%, 7/1/2039
  
1,000,000
  
737,840
  
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue:
              
 
Series A, 5.375%, 8/1/2039
  
1,000,000
  
810,870
  
 
Series A, 6.5%, 8/1/2044
  
2,000,000
  
1,893,280
  
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
  
1,655,580
  
 
 
9,512,524
  
South Carolina 1.3%
  
Hardeeville, SC, Assessment Revenue, Anderson Tract Municipal Improvement District, Series A, 7.75%, 11/1/2039
  
950,000
  
791,018
  
South Carolina, State Public Service Authority Revenue, Santee Cooper, Series A, 5.75%, 12/1/2043
  
890,000
  
951,810
  
 
 
1,742,828
  
Tennessee 1.7%
  
Clarksville, TN, Natural Gas Acquisition Corp., Gas Revenue:
              
 
5.0%, 12/15/2017
  
500,000
  
545,475
  
 
5.0%, 12/15/2018
  
540,000
  
595,134
  
Johnson City, TN, Health & Educational Facilities Board Hospital Revenue, Mountain States Health Alliance, Series A, 7.75%, 7/1/2038
  
1,000,000
  
1,124,570
  
 
 
2,265,179
  
Texas 17.3%
  
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
  
976,550
  
 
Series A-3, AMT, 5.125%, 5/15/2033
  
1,000,000
  
967,990
  
Central Texas, Regional Mobility Authority Revenue, Series A, 5.0%, 1/1/2043
  
225,000
  
192,728
  
Central Texas, Regional Mobility Authority Revenue, Senior Lien, 6.0%, 1/1/2041
  
545,000
  
540,607
  
Dallas-Fort Worth, International Airport Revenue:
              
 
Series F, AMT, 5.0%, 11/1/2035
  
1,000,000
  
925,470
  
 
Series D, AMT, 5.0%, 11/1/2038
  
2,000,000
  
1,828,860
  
Houston, TX, Transportation/Tolls Revenue, Special Facilities, Continental Airlines, Inc., Series E, AMT, 6.75%, 7/1/2029
  
2,000,000
  
1,999,840
  
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
  
1,976,625
  
North Texas, Tollway Authority Revenue, Toll Second Tier, Series F, 5.75%, 1/1/2033
  
2,000,000
  
2,092,540
  
Red River, TX, Health Facilities Development Corp., Retirement Facilities Revenue, Sears Methodist Retirement System Obligated Group Project, Series A, 5.45%, 11/15/2038
  
2,410,000
  
1,923,614
  
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
  
856,540
  
Tarrant County, TX, Cultural Education Facilities Finance Corp., Hospital Revenue, Scott & White Healthcare, 5.0%, 8/15/2043
  
2,100,000
  
1,977,402
  
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility, Mirador Project, Series A, 8.25%, 11/15/2044
  
570,000
  
596,835
  
Texas, Grand Parkway Transportation Corp., System Toll Revenue, Series B, 5.0%, 4/1/2053
  
500,000
  
461,330
  
Texas, Love Field Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project, 5.25%, 11/1/2040
  
1,055,000
  
991,099
  
Texas, SA Energy Acquisition Public Facility Corp., Gas Supply Revenue, 5.5%, 8/1/2020
  
2,000,000
  
2,203,220
  
Texas, State Municipal Gas Acquisition & Supply Corp., III Gas Supply Revenue:
              
 
5.0%, 12/15/2030
  
165,000
  
152,077
  
 
5.0%, 12/15/2031
  
335,000
  
305,748
  
 
5.0%, 12/15/2032
  
1,000,000
  
904,520
  
Texas, State Transportation Commission, Turnpike Systems Revenue, Series A, 5.0%, 8/15/2041
  
1,280,000
  
1,196,045
  
Travis County, TX, Health Facilities Development Corp. Revenue, Westminster Manor Health, 7.125%, 11/1/2040
  
510,000
  
547,271
  
 
 
23,616,911
  
Virginia 1.7%
  
Virginia, Route 460 Funding Corp., Toll Road Revenue, Series A, 5.0%, 7/1/2052
  
1,000,000
  
780,360
  
Washington County, VA, Industrial Development Authority, Hospital Facility Revenue, Mountain States Health Alliance, Series C, 7.75%, 7/1/2038
  
1,370,000
  
1,544,072
  
 
 
2,324,432
  
Washington 2.7%
  
Washington, State Health Care Facilities Authority Revenue, Series C, 5.375%, 8/15/2028, INS: Radian
  
595,000
  
596,244
  
Washington, State Health Care Facilities Authority Revenue, Virginia Mason Medical Center, Series A, 6.125%, 8/15/2037
  
2,000,000
  
2,054,940
  
Washington, State Health Care Facilities Authority, Catholic Health Initiatives, Series A, 5.0%, 2/1/2041
  
1,000,000
  
956,840
  
 
 
3,608,024
  
Wisconsin 2.6%
  
Wisconsin, State Health & Educational Facilities Authority Revenue, Agnesian Healthcare, Inc., Series B, 5.0%, 7/1/2036
  
500,000
  
476,100
  
Wisconsin, State Health & Educational Facilities Authority Revenue, Prohealth Care, Inc. Obligation Group, 6.625%, 2/15/2039
  
1,110,000
  
1,189,465
  
Wisconsin, State Health & Educational Facilities Authority Revenue, Thedacare, Inc., Series A, 5.5%, 12/15/2038
  
1,765,000
  
1,778,361
  
Wisconsin, University Hospitals & Clinics Authority, Series A, 5.0%, 4/1/2038
  
145,000
  
138,098
  
 
 
3,582,024
  
 
Total Municipal Bonds and Notes (Cost $187,708,092)
  
196,007,717
  
 
 
Municipal Inverse Floating Rate Notes (b) 12.6%
  
California 3.2%
  
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2027, INS: AGMC (c)
  
2,121,349
  
2,236,629
  
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2028, INS: AGMC (c)
  
1,930,312
  
2,035,210
  
 
Trust: San Diego County, CA, Water Utility Improvements, Certificates of Participation, Series 2008-1104, 144A, 9.344%, 11/1/2015, Leverage Factor at purchase date: 2 to 1
      
 
 
4,271,839
  
New York 4.4%
  
New York, State Dormitory Authority, State Personal Income Tax Revenue, Series A, 5.0%, 3/15/2023 (c)
  
5,535,000
  
6,039,709
  
 
Trust: New York, State Dormitory Authority Revenue, Secondary Issues, Series 1955-2, 144A, 18.183%, 3/15/2015, Leverage Factor at purchase date: 4 to 1
      
Tennessee 5.0%
  
Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2024 (c)
  
5,918,585
  
6,826,891
  
 
Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-1, 144A, 18.196%, 1/1/2016, Leverage Factor at purchase date: 4 to 1
      
 
Total Municipal Inverse Floating Rate Notes (Cost $15,781,041)
  
17,138,439
  
         
 
% of
Net Assets
  
Value ($)
  
 
Total Investment Portfolio (Cost $203,489,133) †
156.5
  
213,146,156
  
MTPS, at Liquidation Value
(44.4)
  
(60,475,000)
  
ARPS, at Liquidation Value
(7.0)
  
(9,525,000)
  
Other Assets and Liabilities, Net
(5.1)
  
(6,967,781)
  
 
Net Assets Applicable to Common Shareholders
100.0
  
136,178,375
  

For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.
*
Non-income producing security.
**
Variable rate demand notes are securities whose interest rates are reset periodically at market levels.  These securities are payable on demand and are shown at their current rates as of August 31, 2013.
†
The cost for federal income tax purposes was $191,728,706.  At August 31, 2013, net unrealized appreciation for all securities based on tax cost was $10,802,411.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $17,858,738 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $7,056,327.
(a)
When-issued security.
(b)
Securities represent the underlying municipal obligations of inverse floating rate obligations held by the Fund.
(c)
Security forms part of the below tender option bond trust.  Principal Amount and Value shown take into account the leverage factor.
   

144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
AGC: Assured Guaranty Corp.
AGMC: Assured Guaranty Municipal Corp.
AMBAC: Ambac Financial Group, Inc.
AMT: Subject to alternative minimum tax.
ETM: Bonds bearing the description ETM (escrow to maturity) are collateralized usually by U.S. Treasury securities which are held in escrow and used to pay principal and interest on bonds so designated.
GTY: Guaranty Agreement
INS: Insured
LOC: Letter of Credit
NATL: National Public Finance Guarantee Corp.
Prerefunded: Bonds which are prerefunded are collateralized usually by U.S. Treasury securities which are held in escrow and used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date.
Radian: Radian Asset Assurance, Inc.
SPA: Standby Bond Purchase Agreement

 
 
Fair Value Measurements

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2013 in valuing the Fund's investments.

Assets
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Municipal Bonds and Notes(d)
   $ —     $ 213,146,156     $ —     $ 213,146,156  
Total
   $ —     $ 213,146,156     $ —     $ 213,146,156  

There have been no transfers between fair value measurement levels during the period ended August 31, 2013.
(d)
See Investment Portfolio for additional detailed categorizations.




ITEM 2.
CONTROLS AND PROCEDURES
   
 
(a)   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.
   
 
(b)   There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
   
ITEM 3.
EXHIBITS
   
 
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.

 

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:
DWS Strategic Municipal Income Trust
   
By:
/s/Robert Kendall
Robert Kendall
President
   
Date:
October 23, 2013


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.

By:
/s/Robert Kendall
Robert Kendall
President
   
Date:
October 23, 2013
   
   
   
By:
/s/Paul Schubert
Paul Schubert
Chief Financial Officer and Treasurer
   
Date:
October 23, 2013