UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
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Investment Company Act file number 811-05767
Scudder Strategic Municipal Income Trust
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(Exact name of registrant as specified in charter)
222 South Riverside Plaza
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Paul Schubert
345 Park Avenue
New York, NY 10154
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 454-7190
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Date of fiscal year end: 11/30
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Date of reporting period: 8/31/05
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Form N-Q is to be used by registered management investment companies, other than
small business investment companies registered on Form N-5 (ss.ss. 239.24 and
274.5 of this chapter), to file reports with the Commission, not later than 60
days after the close of the first and third fiscal quarters, pursuant to rule
30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-4). The
Commission may use the information provided on Form N-Q in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. The OMB has reviewed this collection of information under the
clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS
Investment Portfolio as of August 31, 2005 (Unaudited)
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Scudder Strategic Municipal Income Trust
Principal
Amount ($) Value ($)
---------------------------------
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Municipal Bonds and Notes 148.1%
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Alabama 2.0%
Alabama, Sales & Special Tax Revenue, Public School and College Authority,
Series C, 5.625%, 7/1/2013 1,000,000 1,099,490
Huntsville, AL, Hospital & Healthcare Revenue, Health Care Authority,
Series A, 5.75%, 6/1/2031 1,500,000 1,605,165
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2,704,655
Arizona 1.5%
Arizona, Project Revenue, Health Facilities Authority, The New Foundation
Project, 8.25%, 3/1/2019 1,975,000 1,993,664
California 10.3%
California, Special Assessment Revenue, Golden State Tobacco Securitization
Corp.:
Series B, 5.625%, 6/1/2038 1,890,000 2,162,935
Series 2003-A-1, 6.75%, 6/1/2039 4,500,000 5,192,505
California, State Public Works Board, Lease Revenue, Department of
Corrections, Series C, 5.5%, 6/1/2019 1,920,000 2,141,261
Hayward, CA, Multi-Family Housing Revenue, Timbers Apartments, Series A,
AMT, 2.47% *, 3/15/2033 1,400,000 1,400,000
Sacramento County, CA, Sales & Special Tax Revenue, Bradshaw Road Project,
7.2%, 9/2/2015 1,130,000 1,146,486
Sacramento, CA, Project Revenue, City Financing Authority, Convention
Center Hotel, Series A, 6.25%, 1/1/2030 2,000,000 2,109,460
-------------
14,152,647
Colorado 3.8%
Colorado, Hospital & Healthcare Revenue, Portercare Adventist Health
Project, 6.5%, 11/15/2031 1,000,000 1,123,700
Colorado, Transportation/Tolls Revenue, Northwest Parkway Public Highway
Authority, Series D, 7.125%, 6/15/2041 1,150,000 1,251,016
Denver, CO, Sales & Special Tax Revenue, Urban Renewal Authority, AMT,
7.75%, 9/1/2016 1,615,000 1,697,252
Mesa County, CO, Valley School District No. 051 Grand Junction, Series A,
5.0%, 12/1/2024 (a) 1,000,000 1,078,630
-------------
5,150,598
Connecticut 2.7%
Greenwich, CT, Multi-Family Housing Revenue, 6.35%, 9/1/2027 2,000,000 2,124,480
Mashantucket, CT, Sports, Expo & Entertainment Revenue, Mashantucket
Western Pequot Tribe:
Series B, 144A, Zero Coupon, 9/1/2017 2,000,000 1,100,580
Series B, 144A, Zero Coupon, 9/1/2018 1,000,000 520,260
-------------
3,745,320
District of Columbia 0.8%
District of Columbia, Core City General Obligation, Series A, 5.0%,
6/1/2018 (a) 1,000,000 1,054,380
Florida 6.8%
Alachua County, FL, Health Facilities Authority Revenue, Shands Teaching
Hospital, Series A, 2.3% *, 12/1/2032, SunTrust Bank (b) 200,000 200,000
Florida, Industrial Development Revenue, Capital Travel Agency, Seminole
Tribe Convention, Series A, 10.0%, 10/1/2033 2,000,000 2,204,520
Hillsborough County, FL, Industrial Development Revenue, University
Community Hospital Project, Series A, 5.625%, 8/15/2023 2,000,000 2,080,440
Miami Beach, FL, Health Facilities Authority Hospital Revenue, Mount Sinai
Medical Center, 144A, 6.75%, 11/15/2029 1,600,000 1,812,624
Nassau County, FL, ICF/MR-Intercare Facilities Mentally Retarded Revenue,
GF/Amelia Island Properties Project, Series A, 9.75%, 1/1/2023 1,845,000 1,860,664
Orlando, FL, Special Assessment Revenue, Conroy Road Interchange Project,
Series A, 5.8%, 5/1/2026 1,000,000 1,016,840
Palm Beach County, FL, Health Facilities Authority Revenue, Bethesda
Healthcare System Project, 2.34% *, 12/1/2031, SunTrust Bank (b) 100,000 100,000
-------------
9,275,088
Georgia 1.6%
Americus-Sumter County, GA, Hospital & Healthcare Revenue, Hospital
Authority, South Georgia Methodist, Series A, 6.375%, 5/15/2029 1,250,000 1,286,200
Burke County, GA, Development Authority Pollution Control Revenue,
Oglethorpe Power Corp., 2.34% *, 1/1/2022 (a) 365,000 365,000
Monroe County, GA, Development Authority Pollution Control Revenue,
Oglethorpe Power Corp. Project, 2.34% *, 1/1/2018 (a) 600,000 600,000
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2,251,200
Hawaii 1.0%
Hawaii, State General Obligation:
Prerefunded, Series CU, 5.75%, 10/1/2011 (a) 65,000 72,733
Series CU, 5.75%, 10/1/2011 (a) 1,185,000 1,319,225
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1,391,958
Illinois 10.2%
Chicago, IL, Core City General Obligation, Board of Education, Series A,
5.75%, 12/1/2017 (a) 1,380,000 1,567,376
Illinois, Core City General Obligation, 5.0%, 6/1/2019 (a) 3,000,000 3,246,240
Illinois, Hospital & Healthcare Revenue, 6.75%, 2/15/2016 2,180,000 2,491,544
Illinois, State General Obligation, Prerefunded, 6.0%, 1/1/2013 (a) 3,315,000 3,692,612
Illinois, Upper River Valley Development Authority, Solid Waste Disposal
Revenue, Waste Recovery Project, AMT, 5.9%, 2/1/2014 1,615,000 1,644,409
University Park, IL, Sales & Special Tax Revenue, Governors Gateway
Industrial Park, 8.5%, 12/1/2011 1,240,000 1,271,583
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13,913,764
Indiana 2.2%
Indiana, Senior Care Revenue, Health Facilities Finance Authority,
Franciscan Eldercare Community Services, 5.875%, 5/15/2029 3,000,000 3,051,510
Iowa 0.8%
Lake City, IA, Senior Care Revenue, Health Care Facility, Opportunity
Living Project, 144A, 6.45%, 5/1/2011 1,050,000 1,076,922
Kansas 3.0%
Manhattan, KS, Senior Care Revenue, Meadowlark Hills Retirement, Series A,
6.5%, 5/15/2028 500,000 521,275
Overland Park, KS, Industrial Development Revenue, Series A, 7.375%,
1/1/2032 2,000,000 2,195,680
Wyandotte County, KS, Unified Government Special Obligation Revenue, Sales
Tax, Series B, 5.0%, 12/1/2020 1,400,000 1,443,526
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4,160,481
Kentucky 0.8%
Kentucky, Hospital & Healthcare Revenue, Economic Development Finance
Authority, Norton Healthcare, Inc., Series A, 6.625%, 10/1/2028 1,000,000 1,107,130
Louisiana 2.4%
Morehouse Parish, LA, Pollution Control Revenue, International Paper Co.
Project, Series A, 5.25%, 11/15/2013 3,000,000 3,221,940
Maryland 7.6%
Anne Arundel County, MD, General Obligation, National Business Park
Project, Prerefunded, 144A, 7.375%, 7/1/2028 997,000 1,198,025
Anne Arundel County, MD, Revenue Lease, Arundel Mills Project, Prerefunded,
7.1%, 7/1/2029 1,500,000 1,740,255
Maryland, Higher Education Revenue, Collegiate Housing Foundation:
Series A, 5.75%, 6/1/2019 1,000,000 1,054,740
Series A, 5.75%, 6/1/2031 1,000,000 1,044,350
Maryland, Hospital & Healthcare Revenue, University of Maryland Medical
System, 6.75%, 7/1/2030 1,000,000 1,123,970
Maryland, Project Revenue, Economic Development Corp., Chesapeake Bay,
Series B, 7.625%, 12/1/2022 4,000,000 4,267,360
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10,428,700
Massachusetts 8.0%
Massachusetts, Hospital & Healthcare Revenue, Health & Educational
Facilities Authority, Civic Investments, Series A, 9.0%, 12/15/2015 2,000,000 2,457,460
Massachusetts, Hospital & Healthcare Revenue, Partners Healthcare System,
Series C, 5.75%, 7/1/2032 1,000,000 1,109,970
Massachusetts, Industrial Development Revenue, Development Finance Agency,
Series A, 7.1%, 7/1/2032 1,955,000 2,017,169
Massachusetts, Project Revenue, Health & Educational Facilities Authority,
Jordan Hospital, Series E, 6.75%, 10/1/2033 1,790,000 1,989,191
Massachusetts, State General Obligation, Consolidated Loan:
Series B, Prerefunded, 5.0%, 4/1/2016 (a) 915,000 966,615
Series B, 5.0%, 4/1/2016 (a) 2,260,000 2,387,487
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10,927,892
Michigan 3.8%
Detroit, MI, Sewer Disposal Revenue, Senior Lien, Series B, 2.3% *,
7/1/2033 (a) 90,000 90,000
Kalamazoo, MI, Industrial Development Revenue, Economic Development Corp.,
Series A, 7.5%, 5/15/2029 2,000,000 2,091,580
Michigan, University of Michigan Hospitals Revenue, Series A, 2.3% *,
12/1/2019 175,000 175,000
Saginaw, MI, Hospital & Healthcare Revenue, Hospital Finance Authority,
Covenant Medical Center, Series F, 6.5%, 7/1/2030 1,000,000 1,099,710
Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services:
Series A, ETM, 5.6%, 2/15/2013 345,000 368,108
Series A, ETM, 5.75%, 2/15/2023 1,300,000 1,394,055
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5,218,453
Missouri 2.8%
St. Louis, MO, Industrial Development Authority Revenue, St. Louis Convention
Center:
AMT, Series A, 6.875%, 12/15/2020 1,000,000 823,660
AMT, Series A, 7.2%, 12/15/2028 2,000,000 1,648,280
St. Louis, MO, Special Assessment Revenue, Scullin Redevelopment Area,
Series A, 10.0%, 8/1/2010 1,175,000 1,345,704
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3,817,644
Nebraska 0.0%
Nebraska, Single Family Housing Revenue, Investment Finance Authority, AMT,
Series A, 6.7%, 9/1/2026 40,000 40,587
Nevada 1.6%
Las Vegas, NV, Transportation/Tolls Revenue, Las Vegas Monorail Project,
7.375%, 1/1/2030 2,000,000 2,111,540
Nevada, Single Family Housing Revenue, AMT, Series C, 6.5%, 4/1/2028 95,000 97,681
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2,209,221
New Hampshire 3.5%
New Hampshire, Higher Education Revenue, Health & Educational Facilities
Authority, New Hampshire College Issue, 7.4%, 1/1/2023 1,000,000 1,195,680
New Hampshire, Hospital & Healthcare Revenue, Rivermead at Peterborough
Retirement Community, 5.75%, 7/1/2028 1,500,000 1,541,190
New Hampshire, Senior Care Revenue, Higher Education Revenue, Havenwood
Heritage Heights, 7.45%, 1/1/2025 2,000,000 2,053,460
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4,790,330
New Jersey 5.3%
New Jersey, Economic Development Authority Revenue, Cigarette Tax, 5.75%,
6/15/2034 290,000 312,020
New Jersey, Economic Development Authority Revenue, Motor Vehicle Surplus
Revenue:
Series A, 5.0%, 7/1/2022 (a) 1,430,000 1,543,742
Series A, 5.0%, 7/1/2023 (a) 1,770,000 1,906,680
New Jersey, Higher Education Revenue, Education Facilities Authority,
Caldwell College, Series A, 7.25%, 7/1/2025 1,785,000 1,822,324
New Jersey, Resource Recovery Revenue, Tobacco Settlement Financing Corp.,
5.75%, 6/1/2032 1,665,000 1,741,956
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7,326,722
New Mexico 2.1%
Farmington, NM, Pollution Control Revenue, 5.8%, 4/1/2022 2,750,000 2,816,495
New York 13.4%
Long Island, NY, Power Authority, Electric System Revenue, Series 1B, 2.32%
*, 5/1/2033, State Street Bank & Trust Co. (b) 140,000 140,000
Nassau County, NY, Hospital & Healthcare Revenue, 6.0%, 8/1/2016 (a) 2,825,000 3,185,611
Nassau County, NY, Project Revenue, North Shore Healthcare Systems Project,
Series B, 5.875%, 11/1/2011 760,000 833,667
New York, Core City General Obligation, Series C, 7.0%, 2/1/2010 315,000 320,034
New York, General Obligation, Series A-4, 2.3% *, 8/1/2021, Landesbank
Baden-Wurttm (b) 250,000 250,000
New York, Sales & Special Tax Revenue, Metropolitan Transportation
Authority, Series A, Prerefunded, 5.125%, 4/1/2019 (a) 1,450,000 1,632,555
New York, Sales & Special Tax Revenue, Transitional Finance Authority,
Series B, 6.0%, 11/15/2013 490,000 556,679
New York, State General Obligation Lease, Higher Education Revenue,
Dormitory Authority, State University, Prerefunded, 5.125%, 5/15/2021
(a) 1,880,000 1,986,220
New York, Transitional Finance Authority, Series B, Prerefunded, 6.0%,
11/15/2013 1,510,000 1,715,481
New York, Transportation/Tolls Revenue, Triborough Bridge and Tunnel
Authority Systems, ETM, Series Y, 6.0%, 1/1/2012 5,000,000 5,633,200
New York City, NY, Industrial Development Agency Revenue, Liberty-7, World
Trade Center, Series A, 6.25%, 3/1/2015 2,000,000 2,127,300
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18,380,747
North Carolina 1.8%
North Carolina, Electric Revenue, Municipal Power Agency:
Series C, 5.375%, 1/1/2017 1,000,000 1,069,860
Series B, 6.375%, 1/1/2013 1,300,000 1,447,134
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2,516,994
North Dakota 0.8%
Grand Forks, ND, Hospital & Healthcare Revenue, Altru Health Care System,
7.125%, 8/15/2024 1,000,000 1,113,120
Pennsylvania 6.6%
Montgomery County, PA, Industrial Development Authority Revenue, Whitemarsh
Continuing Care, 6.25%, 2/1/2035 600,000 636,318
Montgomery County, PA, Senior Care Revenue, Higher Education & Health
Authority, Philadelphia Geriatric Center, Series A, 7.25%, 12/1/2027 2,000,000 2,145,080
Pennsylvania, Higher Educational Facilities Authority Revenue, Philadelphia
College of Textiles and Science, 6.7%, 4/1/2014 2,000,000 2,065,000
Pennsylvania, Hospital & Healthcare Revenue, Economic Development Financing
Authority, UPMC Health System, Series A, 6.0%, 1/15/2031 750,000 828,848
Pennsylvania, St. Mary Hospital Authority, Health Systems Revenue, Catholic
Health East, Series B, 5.5%, 11/15/2024 1,465,000 1,595,634
Philadelphia, PA, Redevelopment Authority Revenue, First Lien Mortgage,
Series A, 6.5%, 1/1/2029 640,600 664,443
Westmoreland County, PA, Senior Care Revenue, Industrial Development
Authority, Health Care Facilities-Redstone, Series B, 8.125%,
11/15/2030 1,000,000 1,106,680
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9,042,003
Rhode Island 1.6%
Rhode Island, Special Assessment Revenue, Series A, 6.125%, 6/1/2032 2,000,000 2,124,440
South Carolina 7.0%
South Carolina, Hospital & Healthcare Revenue, Jobs Economic Development
Authority, Bon Secours Health Systems, Inc., Series A, 5.625%,
11/15/2030 2,000,000 2,141,460
South Carolina, Hospital & Healthcare Revenue, Jobs Economic Development
Authority, Palmetto Health Alliance:
Series C, 7.0%, 8/1/2030 1,545,000 1,794,765
Series A, Prerefunded, 7.375%, 12/15/2021 1,000,000 1,212,980
South Carolina, Transportation/Tolls Revenue, Series A, 5.375%, 10/1/2024
(a) 4,150,000 4,489,470
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9,638,675
South Dakota 1.5%
South Dakota, Hospital & Healthcare Revenue, Sioux Valley Hospital, Series
E, 5.375%, 11/1/2024 2,000,000 2,121,160
Tennessee 1.7%
Johnson City, TN, Hospital & Healthcare Revenue, Health & Educational
Facilities Board Hospital, Series A, 7.5%, 7/1/2033 2,000,000 2,388,440
Texas 21.2%
Abilene, TX, Senior Care Revenue, Health Facilities Development, Sears
Methodist Retirement Facilities, Series A, 5.9%, 11/15/2025 2,500,000 2,547,900
Austin, TX, Project Revenue, Bergstrom Landhost Enterprises, Inc. Airport
Hotel Project, Series A, 6.75%, 4/1/2027 ** 1,995,000 927,495
Crowley, TX, School District General Obligation, 5.125%, 8/1/2025 4,000,000 4,234,680
Hidalgo County, TX, Hospital & Healthcare Revenue, Mission Hospital, Inc.
Project, 6.75%, 8/15/2016 2,000,000 2,165,760
Houston, TX, General Obligation:
Prerefunded, Series A, 5.0%, 3/1/2016 1,365,000 1,431,025
5.0%, 3/1/2016 1,635,000 1,704,177
Houston, TX, School District General Obligation, Series A, 5.0%, 2/15/2024 2,000,000 2,127,300
Houston, TX, Transportation/Tolls Revenue, Special Facilities, Continental
Airlines, Inc., AMT, Series E, 6.75%, 7/1/2029 2,000,000 1,923,160
Tarrant County, TX, Hospital & Healthcare Revenue, Health Facilities
Development Corp., 6.7%, 11/15/2030 1,000,000 1,116,380
Texas, Electric Revenue, Lower Colorado River Authority, Series B, 6.0%,
5/15/2013 (a) 5,000,000 5,517,700
Texas, Industrial Development Revenue, Waste Disposal Authority, AMT,
Series A, 6.1%, 8/1/2024 1,000,000 1,074,790
Travis County, TX, Hospital & Healthcare Revenue, Ascension Health Credit,
Series A, 6.0%, 11/15/2012 (a) 3,860,000 4,259,510
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29,029,877
Utah 0.0%
Utah, Single Family Housing Revenue, Housing Finance Agency, AMT, Series
B2, 6.65%, 7/1/2026 35,000 35,298
Virgin Islands 2.5%
Virgin Islands, Sales & Special Tax Revenue, Public Finance Authority,
Series A, 6.375%, 10/1/2019 3,000,000 3,413,730
Virginia 1.6%
Fairfax County, VA, Hospital & Healthcare Revenue, Economic Development
Authority, Greenspring Retirement Community, Series A, 7.25%, 10/1/2019 2,000,000 2,186,440
Washington 0.5%
Washington, State Health Care Facilities Authority Revenue, Providence
Services, Series A, 2.34% *, 12/1/2030 (a) 700,000 700,000
West Virginia 1.7%
West Virginia, Hospital & Healthcare Revenue, Hospital Finance Authority,
Charleston Medical Center, Series A, 6.75%, 9/1/2022 390,000 436,387
West Virginia, Hospital Finance Authority, Charleston Medical Center,
Prerefunded, 6.75%, 9/1/2022 1,610,000 1,880,850
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2,317,237
Wisconsin 1.6%
Wisconsin, Hospital & Healthcare Revenue, Health & Education Facilities
Authority, Aurora Health Care, Inc.:
Series A, 5.6%, 2/15/2029 1,000,000 1,036,630
6.875%, 4/15/2030 1,000,000 1,151,750
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2,188,380
% of
Net Assets Value ($)
---------------------------------
Total Investment Portfolio (Cost $ 184,966,434) 148.1 203,023,842
Other Assets and Liabilities, Net 2.9 4,028,823
Preferred Stock, at Redemption Value (51.0) (70,000,000)
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Net Assets Applicable to Common Shareholders 100.0 137,052,665
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 August 31, 2005.
** Non-income producing security. In the case of a bond, generally denotes
that the issuer has defaulted on the payment of principal or interest or
has filed for bankruptcy. The following table represents bonds that are in
default:
Maturity Principal Acquisition
Security Coupon Date Amount ($) Cost ($) Value ($)
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Austin, TX, Project Revenue,
Bergstrom, Landhost
Enterprises, Inc. Airport
Hotel, Inc 6.75 4/1/2027 1,995,000 1,995,000 927,495
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As a % of Total
Insurance Coverage Investment Portfolio
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Ambac Financial Group 2.4
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Financial Guaranty Insurance Company 2.8
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Financial Security Assurance, Inc. 5.1
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MBIA Corp. 10.2
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(b) Security incorporates a letter of credit from a major bank.
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
by US Treasury securities which are held in escrow and used to pay principal and
interest on bonds so designated.
Prerefunded: Bonds which are prerefunded are collateralized by US Treasury
securities which are held in escrow and are used to pay principal and interest
on tax-exempt issues and to retire the bonds in full at the earliest refunding
date.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Scudder Strategic Municipal Income Trust
By: /s/Vincent J. Esposito
------------------------------
Vincent J. Esposito
President
Date: October 25, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
Registrant: Scudder Strategic Municipal Income Trust
By: /s/Vincent J. Esposito
------------------------------
Vincent J. Esposito
President
Date: October 25, 2005
By: /s/Paul Schubert
------------------------------
Paul Schubert
Chief Financial Officer and Treasurer
Date: October 25, 2005