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

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code:  (212) 454-7190

Date of fiscal year end:  11/30

Date of reporting period: 2/28/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

| Investment Portfolio | **as of February 28, 2009  (Unaudited)** |
|----------------------|------------------------------------------|

 

 

**DWS Strategic Municipal Income Trust**

 

 

|   | **Principal****Amount ($)**          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **Value ($)** |
|--------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|        |
|   | **Municipal Bonds and Notes 156.1%** |  
**Alabama 0.6%**

 
Sylacauga, AL, Health Care Authority Revenue, Coosa Valley Medical Center, Series A, 6.0%, 8/1/2035 

 

1,000,000

 

**627,430**

**Arizona 1.5%**

 
Arizona, Project Revenue, Health Facilities Authority, The New Foundation Project, 8.25%, 3/1/2019 

 

1,725,000

 

**1,635,886**

**California 7.3%**

 
California, Bay Area Toll Authority, Toll Bridge Revenue, Series C, 0.35% *, 4/1/2045 

 

1,000,000

 

1,000,000

California, Morongo Band of Mission Indians, Enterprise Casino Revenue, Series B, 144A, 6.5%, 3/1/2028 

 

1,000,000

 

765,060

 

 

 

California, Special Assessment Revenue, Golden State Tobacco Securitization Corp., Series 2003-A-1, Prerefunded, 6.75%, 6/1/2039 

 

4,500,000

 

5,301,765

Sacramento County, CA, Sales & Special Tax Revenue, Bradshaw Road Project, 7.2%, 9/2/2015 

 

870,000

 

872,636

 

**7,939,461**

**Colorado 3.2%**

 
Colorado, Health Facilities Authority Revenue, Christian Living Communities Project, Series A, 5.75%, 1/1/2037 

 

1,000,000

 

643,350

Colorado, Health Facilities Authority Revenue, Portercare Adventist Health Project, Prerefunded, 6.5%, 11/15/2031 

 

1,000,000

 

1,138,760

Colorado, Public Energy Authority, Natural Gas Purchased Revenue, 6.25%, 11/15/2028 

 

635,000

 

524,224

Colorado, Transportation/Tolls Revenue, Northwest Parkway Public Highway Authority, Series D, Prerefunded, 7.125%, 6/15/2041 

 

1,145,000

 

1,224,246

 

**3,530,580**

**Connecticut 3.3%**

 
Greenwich, CT, Multi-Family Housing Revenue, 6.35%, 9/1/2027 

 

2,000,000

 

1,967,940

Mashantucket, CT, Mashantucket Western Pequot Tribe, Special Revenue, Series A, 144A, 6.5%, 9/1/2031 

 

705,000

 

417,875

Mashantucket, CT, Sports, Expo & Entertainment Revenue, Mashantucket Western Pequot Tribe:

 
 

Series B, 144A, Zero Coupon, 9/1/2017 

 

2,000,000 

 

818,660 

 

Series B, 144A, Zero Coupon, 9/1/2018 

 

1,000,000 

 

366,890 

 

**3,571,365**

**Florida 5.4%**

 
Florida, Capital Region Community Development District Revenue, Capital Improvement, Series A, 7.0%, 5/1/2039 

 

500,000

 

351,685

Florida, Tolomato Community Development District, Special Assessment:

 
 

5.4%, 5/1/2037 

 

1,990,000 

 

1,058,819 

 

6.55%, 5/1/2027 

 

850,000 

 

585,778 

Hillsborough County, FL, Industrial Development Authority Revenue, Health Facilities, University Community Hospital, Series A, 5.625%, 8/15/2029 

 

1,875,000

 

1,411,050

Miami Beach, FL, Health Facilities Authority Hospital Revenue, Mount Sinai Medical Center, 144A, 6.75%, 11/15/2029 

 

1,600,000

 

1,034,496

Orlando, FL, Greater Aviation Authority, Airport Facilities Revenue, Jet Blue Airways Corp., AMT, 6.5%, 11/15/2036 

 

1,000,000

 

606,400

Orlando, FL, Special Assessment Revenue, Conroy Road Interchange Project, Series A, 5.8%, 5/1/2026 

 

1,000,000

 

825,470

 

**5,873,698**

**Georgia 2.7%**

 
Americus-Sumter County, GA, Hospital & Healthcare Revenue, Hospital Authority, South Georgia Methodist, Series A, 6.375%, 5/15/2029 

 

1,250,000

 

911,650

Georgia, Main Street Natural Gas, Inc., Gas Project Revenue, Series A, 5.5%, 9/15/2024 

 

1,220,000

 

940,474

Georgia, Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare Systems, 6.5%, 8/1/2038 (a) 

 

1,000,000

 

1,056,930

 

**2,909,054**

**Guam 0.7%**

 
Guam, Government Waterworks Authority, Water & Wastewater System Revenue, 6.0%, 7/1/2025 

 

1,000,000

 

**818,850**

**Idaho 0.3%**

 
Idaho, Health Facilities Authority Revenue, St. Luke's Regional Medical Center, 6.75%, 11/1/2037 

 

305,000

 

**312,247**

**Illinois 9.0%**

 
Aurora, IL, Single Family Mortgage Revenue, Series C, AMT, 5.5%, 6/1/2045 

 

2,859,849

 

2,811,146

 

 

 

Illinois, Finance Authority Revenue, Friendship Village of Schaumburg, Series A, 5.625%, 2/15/2037 

 

2,000,000

 

1,115,100

Illinois, Finance Authority Revenue, Monarch Landing, Inc. Facility:

 
 

Series A, 7.0%, 12/1/2027 

 

1,000,000 

 

738,860 

 

Series A, 7.0%, 12/1/2037 

 

1,000,000 

 

684,330 

Illinois, Finance Authority Revenue, Three Crowns Park Plaza, Series A, 5.875%, 2/15/2038 

 

1,000,000

 

600,300

Illinois, Hospital & Healthcare Revenue, ETM, 6.75%, 2/15/2016 

 

2,180,000

 

2,312,653

Illinois, Upper River Valley Development Authority, Solid Waste Disposal Revenue, Waste Recovery Project, AMT, 5.9%, 2/1/2014 

 

995,000

 

899,002

University Park, IL, Sales & Special Tax Revenue, Governors Gateway Industrial Park, 8.5%, 12/1/2011 

 

620,000

 

621,593

 

**9,782,984**

**Indiana 2.4%**

 
Indiana, Senior Care Revenue, Health Facilities Finance Authority, Franciscan Eldercare Community Services, 5.875%, 5/15/2029 

 

3,000,000

 

2,016,210

Vigo County, IN, Hospital Authority Revenue, Union Hospital, Inc., 144A, 5.7%, 9/1/2037 

 

1,000,000

 

653,420

 

**2,669,630**

**Iowa 2.1%**

 
Cedar Rapids, IA, First Mortgage Revenue, Cottage Grove Place, Series A, 5.875%, 7/1/2028 

 

1,670,000

 

1,089,708

Iowa, Finance Authority Retirement Community Revenue, Edgewater LLC Project, 6.5%, 11/15/2027 

 

1,000,000

 

736,500

Lake City, IA, Senior Care Revenue, Health Care Facility, Opportunity Living Project, 144A, 6.45%, 5/1/2011 

 

525,000

 

521,031

 

**2,347,239**

**Kansas 4.4%**

 
Lenexa, KS, Health Care Facility Revenue, 5.5%, 5/15/2039 

 

2,000,000

 

1,105,220

Manhattan, KS, Senior Care Revenue, Meadowlark Hills Retirement, Series A, Prerefunded, 6.5%, 5/15/2028 

 

300,000

 

306,879

Overland Park, KS, Industrial Development Revenue, Series A, Prerefunded, 7.375%, 1/1/2032 

 

2,000,000

 

2,210,560

Wyandotte County, KS, Unified Government Special Obligation Revenue, Sales Tax, Series B, 5.0%, 12/1/2020 

 

1,400,000

 

1,218,084

 

**4,840,743**

**Kentucky 3.7%**

 
Kentucky, Economic Development Finance Authority, Health System Revenue, Norton Healthcare:

 
 

Series A, 6.625%, 10/1/2028 

 

215,000 

 

194,500 

 

Series A, Prerefunded, 6.625%, 10/1/2028 

 

785,000 

 

856,262 

Kentucky, Economic Development Finance Authority, Louisville Arena Project Revenue, Series A-1, 6.0%, 12/1/2033 (a) 

 

365,000

 

374,078

Louisville & Jefferson County, KY, Metropolitan Government Health Systems Revenue, Norton Healthcare, Inc., 5.0%, 10/1/2030 

 

3,425,000

 

2,610,021

 

**4,034,861**

**Louisiana 4.1%**

 
Louisiana, Local Government Environmental Facilities, Community Development Authority Revenue, 6.75%, 11/1/2032 

 

1,000,000

 

663,450

Louisiana, St. John Baptist Parish Revenue, Marathon Oil Corp., Series A, 5.125%, 6/1/2037 

 

1,500,000

 

1,106,895

Morehouse Parish, LA, Pollution Control Revenue, International Paper Co. Project, Series A, 5.25%, 11/15/2013 

 

3,000,000

 

2,654,280

 

**4,424,625**

**Maryland 8.1%**

 
Anne Arundel County, MD, General Obligation, National Business Park Project, 144A, Prerefunded, 7.375%, 7/1/2028 

 

966,000

 

1,055,538

Anne Arundel County, MD, Revenue Lease, Arundel Mills Project, Prerefunded, 7.1%, 7/1/2029 

 

1,500,000

 

1,558,350

 

 

 

Maryland, Higher Education Revenue, Collegiate Housing Foundation, Series A, Prerefunded, 5.75%, 6/1/2031 

 

1,000,000

 

1,033,480

Maryland, Hospital & Healthcare Revenue, University of Maryland Medical System, Prerefunded, 6.75%, 7/1/2030 

 

1,000,000

 

1,085,100

Maryland, State Economic Development Corp. Revenue, Senior Lien Project, Chesapeake Bay:

 
 

Series A, 5.0%, 12/1/2031 

 

1,000,000 

 

510,720 

 

Series B, 5.25%, 12/1/2031 

 

2,000,000 

 

1,058,060 

Maryland, State Health & Higher Educational Facilities Authority Revenue, Anne Arundel Health Systems, Series A, 6.75%, 7/1/2039 

 

500,000

 

505,315

Maryland, State Health & Higher Educational Facilities Authority Revenue, Washington County Hospital:

 
 

5.75%, 1/1/2033 

 

1,000,000 

 

784,370 

 

6.0%, 1/1/2028 

 

1,385,000 

 

1,177,624 

 

**8,768,557**

**Massachusetts 6.2%**

 
Massachusetts, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, Civic Investments, Series A, Prerefunded, 9.0%, 12/15/2015 

 

1,600,000

 

1,957,984

Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032 

 

1,875,000

 

1,430,625

Massachusetts, Project Revenue, Health & Educational Facilities Authority, Jordan Hospital, Series E, 6.75%, 10/1/2033 

 

1,790,000

 

1,291,360

Massachusetts, State Development Finance Agency Revenue, Linden Ponds, Inc. Facility, Series A, 5.75%, 11/15/2035 

 

2,700,000

 

1,540,134

Massachusetts, State Health & Educational Facilities Authority Revenue, Milford Regional Medical Center, Series E, 5.0%, 7/15/2037 

 

950,000

 

541,851

Massachusetts, State Health & Educational Facilities Authority Revenue, Partners Healthcare Systems, Series C, 5.75%, 7/1/2032 

 

35,000

 

35,076

 

**6,797,030**

**Michigan 5.8%**

 
Kalamazoo, MI, Economic Development Corp. Revenue, Heritage Community, 5.375%, 5/15/2027 

 

1,000,000

 

636,730

Kalamazoo, MI, Industrial Development Revenue, Economic Development Corp., Series A, Prerefunded, 7.5%, 5/15/2029 

 

2,000,000

 

2,190,020

Royal Oak, MI, Hospital Finance Authority Revenue, William Beaumont Hospital, 8.25%, 9/1/2039 

 

1,000,000

 

1,065,380

Saginaw, MI, Hospital & Healthcare Revenue, Hospital Finance Authority, Covenant Medical Center, Series F, 6.5%, 7/1/2030 

 

1,000,000

 

945,950

Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services:

 
 

Series A, ETM, 5.6%, 2/15/2013 

 

190,000 

 

202,605 

 

Series A, ETM, 5.75%, 2/15/2023 

 

1,300,000 

 

1,317,251 

 

**6,357,936**

**Minnesota 1.0%**

 
Minneapolis, MN, Health Care Systems Revenue, Fairview Health Services, Series A, 6.75%, 11/15/2032 

 

1,000,000

 

**1,048,120**

**Mississippi 1.2%**

 
Lowndes County, MS, Solid Waste Disposal & Pollution Control Revenue, Weyerhaeuser Co. Project, Series A, 6.8%, 4/1/2022 

 

250,000

 

200,565

Mississippi, Business Finance Corp., Pollution Control Revenue, Systems Energy Resources, Inc. Project, 5.875%, 4/1/2022 

 

1,000,000

 

823,390

Warren County, MS, Gulf Opportunity Zone, International Paper Co., Series A, 6.5%, 9/1/2032 

 

435,000

 

305,909

 

**1,329,864**

**Missouri 0.7%**

 
Branson, MO, Regional Airport Transportation Development District, Airport Revenue, Series B, AMT, 6.0%, 7/1/2037 

 

250,000

 

153,768

 

 

 

St. Louis, MO, Special Assessment Revenue, Scullin Redevelopment Area, Series A, 10.0%, 8/1/2010 

 

535,000

 

560,054

 

**713,822**

**Nevada 9.4%**

 
Clark County, NV, Industrial Development Revenue, Nevada Power Co. Project, Series B, AMT, 5.9%, 10/1/2030 

 

1,665,000

 

1,212,270

Clark County, NV, School District, General Obligation, Series A, 5.0%, 6/15/2022 (a) 

 

7,140,000

 

7,184,268

Henderson, NV, Health Care Facility Revenue, Catholic Healthcare West, Series B, 5.25%, 7/1/2031 

 

2,000,000

 

1,726,260

Las Vegas, NV, Transportation/Tolls Revenue, Las Vegas Monorail Project, 3.688%,    1/1/2030 (b) 

 

2,000,000

 

160,000

 

**10,282,798**

**New Hampshire 5.2%**

 
New Hampshire, Health & Education Facilities Authority Revenue, Dartmouth College Issue, 0.43% *, 6/1/2032 

 

2,100,000

 

2,100,000

New Hampshire, Higher Education Revenue, Health & Educational Facilities Authority, New Hampshire College Issue, Prerefunded, 7.4%, 1/1/2023 

 

1,000,000

 

1,119,670

New Hampshire, Hospital & Healthcare Revenue, Rivermead at Peterborough Retirement Community, 5.75%, 7/1/2028 

 

1,500,000

 

1,022,355

New Hampshire, State Business Finance Authority, Solid Waste Disposal Revenue, Waste Management, Inc. Project, AMT, 5.2%, 5/1/2027 

 

1,750,000

 

1,409,432

 

**5,651,457**

**New Jersey 1.2%**

 
New Jersey, Economic Development Authority Revenue, Cigarette Tax, 5.75%, 6/15/2034 

 

290,000

 

211,532

New Jersey, Health Care Facilities Financing Authority Revenue, St. Joseph's Health Care System, 6.625%, 7/1/2038 

 

1,430,000

 

1,042,084

 

**1,253,616**

**New Mexico 2.1%**

 
Farmington, NM, Pollution Control Revenue, 5.8%, 4/1/2022 

 

2,750,000

 

**2,267,182**

**New York 17.3%**

 
Long Island, NY, Power Authority, Electric System Revenue, Series E, 5.0%, 12/1/2021 (a) 

 

2,900,000

 

2,924,853

Nassau County, NY, Industrial Development Agency, Continuing Care Retirement, Amsterdam at Harborside, Series A, 6.7%, 1/1/2043 

 

1,000,000

 

758,680

Nassau County, NY, Project Revenue, North Shore Healthcare Systems Project, Series B, 5.875%, 11/1/2011 

 

365,000

 

384,261

New York, Core City General Obligation, Series C, 7.0%, 2/1/2010 

 

315,000

 

322,478

New York, Sales & Special Tax Revenue, Metropolitan Transportation Authority, Series A, Prerefunded, 5.125%, 4/1/2019 (a) 

 

1,450,000

 

1,689,511

New York, State General Obligation Lease, Higher Education Revenue, Dormitory Authority, State University, 5.125%, 5/15/2021 (a) 

 

1,515,000

 

1,517,984

New York & New Jersey Port Authority, One Hundred Forty-Seventh, AMT, 5.0%,    10/15/2023 (a) 

 

8,260,000

 

8,011,044

New York City, NY, Industrial Development Agency Revenue, Liberty-7, World Trade Center, Series A, 6.25%, 3/1/2015 

 

2,000,000

 

1,705,360

New York City, NY, Industrial Development Agency, Special Facility Revenue, American Airlines, JFK International Airport, AMT, 8.0%, 8/1/2028 

 

2,000,000

 

1,545,120

 

**18,859,291**

**North Carolina 3.1%**

 
North Carolina, Electric Revenue, Municipal Power Agency:

 
 

Series C, 5.375%, 1/1/2017 

 

1,000,000 

 

1,026,430 

 

Series B, 6.375%, 1/1/2013 

 

1,300,000 

 

1,345,396 

North Carolina, Medical Care Commission, Health Care Facilities Revenue, University Health Systems, Series D, 6.25%, 12/1/2033 

 

1,000,000

 

1,035,710

 

**3,407,536**

 

 

 

**North Dakota 1.0%**

 
Grand Forks, ND, Hospital & Healthcare Revenue, Altru Health Care System, Prerefunded, 7.125%, 8/15/2024 

 

1,000,000

 

**1,095,580**

**Ohio 4.3%**

 
Buckeye, OH, Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/1/2030 

 

7,350,000

 

**4,661,443**

**Pennsylvania 4.6%**

 
Montgomery County, PA, Industrial Development Authority Revenue, Whitemarsh Continuing Care, 6.25%, 2/1/2035 

 

600,000

 

362,844

Montgomery County, PA, Senior Care Revenue, Higher Education & Health Authority, Philadelphia Geriatric Center, Series A, Prerefunded, 7.25%, 12/1/2027 

 

2,000,000

 

2,131,220

Pennsylvania, Hospital & Healthcare Revenue, Economic Development Financing Authority, UPMC Health System, Series A, 6.0%, 1/15/2031 

 

750,000

 

758,325

Philadelphia, Redevelopment Authority Revenue, First Lien Mortgage, Series A, 6.5%, 1/1/2029 

 

596,400

 

596,621

Westmoreland County, PA, Senior Care Revenue, Industrial Development Authority, Health Care Facilities-Redstone, Series B, Prerefunded, 8.125%, 11/15/2030 

 

1,000,000

 

1,112,020

 

**4,961,030**

**Puerto Rico 3.3%**

 
Commonwealth of Puerto Rico, Aqueduct & Sewer Authority Revenue, Series A, 6.0%, 7/1/2038 

 

4,000,000

 

**3,623,200**

**South Carolina 6.2%**

 
Hardeeville, SC, Assessment Revenue, Anderson Tract Municipal Improvement District, Series A, 7.75%, 11/1/2039 

 

983,000

 

739,953

South Carolina, Jobs Economic Development Authority Revenue, Bon Secours Health System:

 
 

Series A, Prerefunded, 5.625%, 11/15/2030 

 

415,000 

 

471,569 

 

Series B, 5.625%, 11/15/2030 

 

1,585,000 

 

1,388,840 

South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Palmetto Health Alliance:

 
 

Series C, Prerefunded, 7.0%, 8/1/2030 

 

1,545,000 

 

1,841,977

 

Series A, Prerefunded, 7.375%, 12/15/2021 

 

1,000,000 

 

1,119,050 

South Carolina, Transportation Infrastructure Bank Revenue, Series A, Prerefunded, 5.375%, 10/1/2024 (a) 

 

1,150,000

 

1,194,804

 

**6,756,193**

**South Dakota 1.8%**

 
South Dakota, Hospital & Healthcare Revenue, Sioux Valley Hospital, Series E, 5.375%, 11/1/2024 

 

2,000,000

 

**2,010,500**

**Tennessee 2.9%**

 
Clarksville, TN, Natural Gas Acquisition Corp., Gas Revenue:

 
 

5.0%, 12/15/2017 

 

500,000 

 

404,955 

 

5.0%, 12/15/2018 

 

540,000 

 

430,375 

Johnson City, TN, Hospital & Healthcare Revenue, Health & Educational Facilities Board Hospital, Series A, Prerefunded, 7.5%, 7/1/2033 

 

2,000,000

 

2,284,420

 

**3,119,750**

**Texas 11.9%**

 
Abilene, TX, Senior Care Revenue, Health Facilities Development, Sears Methodist Retirement Facilities, Series A, 5.9%, 11/15/2025 

 

2,500,000

 

1,791,375

Austin, TX, Bergstrom Landhost Enterprises, Inc., Airport Hotel Project, Series A, 6.75%, 4/1/2027 

 

1,975,000

 

1,252,960

Houston, TX, Transportation/Tolls Revenue, Special Facilities, Continental Airlines, Inc., Series E, AMT, 6.75%, 7/1/2029 

 

2,000,000

 

1,421,820

North Texas, Tollway Authority Revenue, Toll Second Tier, Series F, 5.75%, 1/1/2033 

 

2,000,000

 

1,865,000

Tarrant County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp., Prerefunded, 6.7%, 11/15/2030 

 

1,000,000

 

1,097,700

Texas, Industrial Development Revenue, Waste Disposal Authority, Series A, AMT, 6.1%, 8/1/2024 

 

1,000,000

 

711,430

 

 

 

Texas, Lower Colorado River Authority Revenue, Series B, Prerefunded, 6.0%, 5/15/2013 (a) 

 

10,000

 

10,219

Travis County, TX, Health Facilities Development Corp., Retirement Facility Revenue, Querencia Barton Creek Project, 5.65%, 11/15/2035 

 

1,250,000

 

755,700

Travis County, TX, Hospital & Healthcare Revenue, Ascension Health Credit, Series A, 6.0%, 11/15/2012 (a) 

 

3,860,000

 

4,015,172

 

**12,921,376**

**Virgin Islands 2.8%**

 
Virgin Islands, Sales & Special Tax Revenue, Public Finance Authority, Series A, 6.375%, 10/1/2019 

 

3,000,000

 

**3,009,480**

**Washington 1.8%**

 
Washington, State Health Care Facilities Authority Revenue, Series C, 5.375%, 8/15/2028 (a) 

 

595,000

 

431,744

Washington, State Health Care Facilities Authority Revenue, Virginia Mason Medical Center, Series A, 6.125%, 8/15/2037 

 

2,000,000

 

1,549,660

 

**1,981,404**

**West Virginia 2.0%**

 
West Virginia, Hospital Finance Authority Revenue, Charleston Medical Center, Prerefunded, 6.75%, 9/1/2022

 

2,000,000

 

**2,178,500**

**Wisconsin 1.5%**

 
Wisconsin, Hospital & Healthcare Revenue, Health & Education Facilities Authority, Aurora Health Care, Inc., 6.875%, 4/15/2030 

 

1,000,000

 

881,900

Wisconsin, State Health & Educational Facilities Authority Revenue, Aurora Health Care, Inc., Series A, 5.6%, 2/15/2029 

 

1,040,000

 

795,236

 

**1,677,136**

**Total Municipal Bonds and Notes** (Cost $183,949,488)

 

**170,051,454**

 

**Municipal Inverse Floating Rate Notes (c) 14.8%**

 
**California 3.8%**

 
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A,

5.0%, 5/1/2027 (a) (d)

 

2,121,349

 

2,129,333

San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A,

5.0%, 5/1/2028 (a) (d)

 

1,930,312

 

1,937,576

 

*Trust: San Diego County, CA, Water Utility Improvements, Certificates of Participation, Series 2008-1104, 144A, 8.723%, 5/1/2027, Leverage Factor at purchase date: 2 to 1*

 

 

 

 

 

**4,066,909**

**New York 5.3%**

 
New York, State Dormitory Authority, State Personal Income Tax Revenue, Series A, 5.0%, 

3/15/2023 (d)

 

5,535,000

 

**5,782,404**

 

*Trust: New York, State Dormitory Authority Revenues, Secondary Issues, Series 1955-2, 144A, 17.704%, 3/15/2023, Leverage Factor at purchase date: 4 to 1*

 

 

 

 

 

**Tennessee 5.7%**

 
Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2024 (d)

 

5,918,585

 

**6,242,764**

 

*Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-1, 144A, 17.356%, 1/1/2024, Leverage Factor at purchase date: 4 to 1*

 

 

 

 

**Total Municipal Inverse Floating Rate Notes** (Cost $15,914,004)

 

**16,092,077**

 

**% of****Net Assets**

 

**Value ($)**

**Total Investment Portfolio** (Cost $199,863,492) †

170.9

 

**186,143,531**

**Other Assets and Liabilities, Net**

(6.6)

 

**(7,233,078)**

**Preferred Shares, at Redemption Value**

(64.3)

 

**(70,000,000)**

**Net Assets Applicable to Common Shareholders**

100.0

 

**108,910,453**

*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.*

 

 

 

***

*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 rates as of February 28, 2009.*

*†*

*The cost for federal income tax purposes was $199,343,075.  At February 28, 2009, net unrealized depreciation for all securities based on tax cost was $13,199,544.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $8,613,178 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $21,812,722.*

*(a)*

*Bond is insured by one of these companies:*

**Insurance Coverage**

**As a % of Total****Investment Portfolio**

 
Ambac Financial Group, Inc.

0.6

 
Assured Guaranty Corp.

0.8

 
Financial Guaranty Insurance Co.

10.5

 
Financial Security Assurance, Inc.

3.1

 
MBIA Corp.

2.2

 
Radian

0.2

 
*(b)*

*Partial interest paying security.  The rate shown represents 50% of the original coupon rate.*

*(c)*

*Securities represent the underlying municipal obligations of inverse floating rate obligations held by the Fund.*

*(d)*

*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.*

*AMT: Subject to alternative minimum tax.*

*ETM: Bonds bearing the description ETM (escrow to maturity) are collateralized usually 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 usually by US 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.*

 

***Fair Value Measurements***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements,” establishes a three-tier hierarchy for measuring fair value and requires additional disclosure about the classification of 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 February 28, 2009 in valuing the Fund's investments. Please see below for information on the Fund’s policy regarding valuation inputs, and their aggregate levels used in the table below:*

 

**Valuation Inputs**

**Investments in  Securities**

Level 1 

$                                 -   

Level 2 

186,143,531   

Level 3 

-   

**Total**

**$              186,143,531**

 

**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/Michael G. Clark

 

Michael G. Clark

President

 

Date:

April 22, 2009

 

 

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: 

DWS Strategic Municipal Income Trust

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

April 22, 2009

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        April 22, 2009

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