nq022814ce-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:  2/28/2014

ITEM 1.
SCHEDULE OF INVESTMENTS


Investment Portfolio    as of February 28, 2014  (Unaudited)
 
DWS Strategic Municipal Income Trust
 
Principal
Amount ($)
  
Value ($)
  
 
 
Municipal Bonds and Notes 142.1%
  
Arizona 1.2%
  
Maricopa County, AZ, Pollution Control Corp. Revenue, El Paso Electric Co. Project, Series B, 7.25%, 4/1/2040
  
1,570,000
  
1,763,298
  
California 12.4%
  
California, Health Facilities Financing Authority Revenue, Catholic Healthcare West, Series A, 6.0%, 7/1/2034
  
1,000,000
  
1,117,430
  
California, M-S-R Energy Authority, Series B, 7.0%, 11/1/2034, GTY: Citigroup, Inc.
  
1,310,000
  
1,726,449
  
California, Morongo Band of Mission Indians, Enterprise Casino Revenue, Series B, 144A, 6.5%, 3/1/2028
  
1,000,000
  
1,090,770
  
California, South Bayside Waste Management Authority, Solid Waste Enterprise, Shoreway Environmental, Series A, 6.25%, 9/1/2029
  
1,425,000
  
1,583,959
  
California, State General Obligation:
              
 
5.25%, 4/1/2035
  
1,230,000
  
1,373,615
  
 
5.5%, 3/1/2040
  
1,000,000
  
1,117,570
  
 
5.75%, 4/1/2031
  
1,000,000
  
1,154,190
  
 
6.0%, 4/1/2038
  
1,000,000
  
1,164,510
  
 
6.5%, 4/1/2033
  
1,950,000
  
2,384,908
  
California, State Public Works Board Lease Revenue, Capital Projects, Series I-1, 6.375%, 11/1/2034
  
1,000,000
  
1,168,780
  
California, State Public Works Board Lease Revenue, Riverside Campus Project, Series B, 6.125%, 4/1/2028
  
2,000,000
  
2,352,940
  
Riverside County, CA, Transportation Commission Toll Revenue Senior Lien, Series A, 5.75%, 6/1/2048
  
1,000,000
  
1,035,680
  
San Buenaventura, CA, Community Memorial Health Systems, 7.5%, 12/1/2041
  
500,000
  
564,595
  
 
 
17,835,396
  
Colorado 2.0%
  
Colorado, Public Energy Authority, Natural Gas Purchased Revenue, 6.25%, 11/15/2028, GTY: Merrill Lynch & Co., Inc.
  
635,000
  
749,066
  
Colorado, State Health Facilities Authority Revenue, Covenant Retirement Communities, Series A, 5.0%, 12/1/2033
  
440,000
  
430,773
  
Colorado, State Health Facilities Authority Revenue, School Health Systems, Series A, 5.5%, 1/1/2035
  
1,000,000
  
1,108,540
  
Denver, CO, City & County Airport Revenue, Series A, AMT, 5.25%, 11/15/2043
  
600,000
  
622,374
  
 
 
2,910,753
  
Connecticut 2.6%
  
Connecticut, Harbor Point Infrastructure Improvement District, Special Obligation Revenue, Harbor Point Project, Series A, 7.875%, 4/1/2039
  
2,000,000
  
2,212,620
  
Mashantucket, CT, Mashantucket Western Pequot Tribe, 144A, 4.0%, 7/1/2031
  
2,256,447
  
1,555,685
  
 
 
3,768,305
  
District of Columbia 0.8%
  
District of Columbia, Metropolitan Airport Authority Systems Revenue:
              
 
Series A, AMT, 5.0%, 10/1/2038
  
200,000
  
210,338
  
 
Series A, AMT, 5.0%, 10/1/2043
  
850,000
  
887,834
  
 
 
1,098,172
  
Florida 11.1%
  
Collier County, FL, Industrial Development Authority, Continuing Care Community Revenue, Arlington of Naples Project, Series A, 8.125%, 5/15/2044
  
500,000
  
504,900
  
Florida, Capital Region Community Development District, Capital Improvement Revenue, Series A, 7.0%, 5/1/2039
  
480,000
  
468,029
  
Florida, Middle Village Community Development District, Special Assessment, Series A, 6.0%, 5/1/2035
  
955,000
  
745,855
  
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
  
36,782
  
 
Series A-3, Step-up Coupon, 0% to 5/1/2019, 6.61% to 5/1/2040
  
110,000
  
65,976
  
 
Series A-4, Step-up Coupon, 0% to 5/1/2022, 6.61% to 5/1/2040
  
55,000
  
24,445
  
 
5.4%, 5/1/2037
  
1,700,000
  
1,651,720
  
 
Series 1, 6.55%, 5/1/2027 *
  
10,000
  
9,949
  
 
Series 2, 6.55%, 5/1/2027 *
  
400,000
  
228,760
  
 
Series 3, 6.55%, 5/1/2027 *
  
130,000
  
1
  
 
Series A-1, 6.55%, 5/1/2027
  
170,000
  
162,438
  
Florida, Village Community Development District No. 9, Special Assessment Revenue, 5.5%, 5/1/2042
  
170,000
  
177,553
  
Hillsborough County, FL, Industrial Development Authority Revenue, Health Facilities, University Community Hospital, Series A, Prerefunded, 5.625%, 8/15/2029
  
1,875,000
  
2,243,419
  
Martin County, FL, Health Facilities Authority, Martin Memorial Medical Center, 5.5%, 11/15/2042
  
335,000
  
342,356
  
Miami Beach, FL, Health Facilities Authority, Mount Sinai Medical Center:
              
 
6.75%, 11/15/2029
  
1,385,000
  
1,438,461
  
 
Prerefunded, 6.75%, 11/15/2029
  
215,000
  
225,028
  
Miami-Dade County, FL, Aviation Revenue:
              
 
Series A, AMT, 5.0%, 10/1/2031
  
30,000
  
31,215
  
 
Series A, 5.5%, 10/1/2041
  
3,000,000
  
3,224,130
  
Orlando & Orange County, FL, Expressway Authority Revenue, Series C, 5.0%, 7/1/2035
  
1,080,000
  
1,120,597
  
Tampa-Hillsborough County, FL, Expressway Authority:
              
 
Series A, 5.0%, 7/1/2031
  
1,500,000
  
1,605,975
  
 
Series A, 5.0%, 7/1/2037
  
1,590,000
  
1,672,362
  
 
 
15,979,951
  
Georgia 6.6%
  
Americus-Sumter County, GA, Hospital Authority, Magnolia Manor Obligated Group, Series A, 6.25%, 5/15/2033
  
1,000,000
  
1,009,290
  
Atlanta, GA, Airport Revenue, Series C, AMT, 5.0%, 1/1/2037
  
375,000
  
386,876
  
Atlanta, GA, Tax Allocation, Beltline Project, Series B, 7.375%, 1/1/2031
  
1,000,000
  
1,167,990
  
Atlanta, GA, Water & Wastewater Revenue, Series A, 6.25%, 11/1/2034
  
2,000,000
  
2,316,760
  
DeKalb County, GA, Water & Sewer Revenue, Series A, 5.25%, 10/1/2036
  
1,000,000
  
1,088,280
  
Gainesville & Hall County, GA, Development Authority Retirement Community Revenue, ACTS Retirement Life Community, Series A-2, 6.625%, 11/15/2039
  
1,000,000
  
1,087,050
  
Georgia, Main Street Natural Gas, Inc., Gas Project Revenue, Series A, 5.5%, 9/15/2024, GTY: Merrill Lynch & Co., Inc.
  
1,220,000
  
1,391,642
  
Georgia, Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare System, 6.5%, 8/1/2038, INS: AGC
  
1,000,000
  
1,095,550
  
 
 
9,543,438
  
Guam 2.4%
  
Guam, Government General Obligation, Series A, 7.0%, 11/15/2039
  
1,000,000
  
1,060,030
  
Guam, Government Waterworks Authority, Water & Wastewater System Revenue, 6.0%, 7/1/2025
  
1,000,000
  
1,019,770
  
Guam, International Airport Authority Revenue, Series C, AMT, 6.375%, 10/1/2043
  
215,000
  
226,814
  
Guam, Power Authority Revenue, Series A, 5.5%, 10/1/2030
  
1,000,000
  
1,060,550
  
 
 
3,367,164
  
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
  
546,235
  
Idaho 0.2%
  
Idaho, Health Facilities Authority Revenue, St. Luke's Regional Medical Center, 6.75%, 11/1/2037
  
305,000
  
338,224
  
Illinois 6.6%
  
Chicago, IL, Airport Revenue, O'Hare International Airport Revenue, Series B, 6.0%, 1/1/2041
  
2,000,000
  
2,217,660
  
Chicago, IL, General Obligation, Series A, 5.25%, 1/1/2035
  
1,000,000
  
1,023,280
  
Illinois, Finance Authority Revenue, Friendship Village of Schaumburg, Series A, 5.625%, 2/15/2037
  
2,000,000
  
1,787,220
  
Illinois, Finance Authority Revenue, Park Place of Elmhurst, Series A, 8.0%, 5/15/2030
  
1,000,000
  
550,100
  
Illinois, Finance Authority Revenue, The Admiral at Lake Project, Series A, 8.0%, 5/15/2040
  
1,000,000
  
1,053,640
  
Illinois, Finance Authority Revenue, Three Crowns Park Plaza, Series A, 5.875%, 2/15/2038
  
1,000,000
  
966,330
  
Illinois, Metropolitan Pier & Exposition Authority Revenue, McCormick Place Project, Series A, 5.0%, 6/15/2042
  
300,000
  
307,452
  
Illinois, Railsplitter Tobacco Settlement Authority, 6.0%, 6/1/2028
  
365,000
  
417,863
  
Illinois, State Finance Authority Revenue, Trinity Health Corp., Series L, 5.0%, 12/1/2030
  
1,000,000
  
1,068,480
  
Illinois, State General Obligation, 5.5%, 7/1/2038
  
130,000
  
138,338
  
 
 
9,530,363
  
Indiana 2.7%
  
Indiana, Finance Authority Hospital Revenue, Deaconess Hospital Obligation, Series A, 6.75%, 3/1/2039
  
525,000
  
582,902
  
Indiana, State Finance Authority Revenue, Community Foundation of Northwest Indiana, 5.0%, 3/1/2041
  
1,000,000
  
1,009,190
  
Indiana, State Finance Authority Revenue, Greencroft Obligation Group, Series A, 7.0%, 11/15/2043
  
460,000
  
475,645
  
Valparaiso, IN, Exempt Facilities Revenue, Pratt Paper LLC Project, AMT, 7.0%, 1/1/2044, GTY: Pratt Industries (U.S.A.)
  
780,000
  
828,321
  
Vigo County, IN, Hospital Authority Revenue, Union Hospital, Inc., 144A, 5.7%, 9/1/2037
  
1,000,000
  
953,740
  
 
 
3,849,798
  
Iowa 1.4%
  
Iowa, Finance Authority Retirement Community Revenue, Edgewater LLC Project, 6.5%, 11/15/2027
  
1,000,000
  
1,018,640
  
Iowa, State Finance Authority, Midwestern Disaster Area Revenue, Fertilizer Co. Project, 5.25%, 12/1/2025
  
1,000,000
  
970,890
  
 
 
1,989,530
  
Kansas 0.2%
  
Lenexa, KS, Health Care Facility Revenue, Lakeview Village, Inc. Project, 7.25%, 5/15/2039
  
300,000
  
315,786
  
Kentucky 5.2%
  
Kentucky, Economic Development Finance Authority, Hospital Facilities Revenue, Owensboro Medical Health Systems, Series A, 6.5%, 3/1/2045
  
2,000,000
  
2,127,300
  
Kentucky, Economic Development Finance Authority, Louisville Arena Project Revenue, Series A-1, 6.0%, 12/1/2033, INS: AGC
  
365,000
  
374,800
  
Kentucky, Public Transportation Infrastructure Authority Toll Revenue, 1st Tier-Downtown Crossing, Series A, 6.0%, 7/1/2053
  
1,440,000
  
1,543,421
  
Louisville & Jefferson County, KY, Metropolitan Government Health Systems Revenue, Norton Healthcare, Inc., 5.0%, 10/1/2030
  
3,425,000
  
3,462,983
  
 
 
7,508,504
  
Louisiana 1.9%
  
Louisiana, Local Government Environmental Facilities, Community Development Authority Revenue, 6.75%, 11/1/2032
  
1,000,000
  
1,073,420
  
Louisiana, St. John Baptist Parish Revenue, Marathon Oil Corp., Series A, 5.125%, 6/1/2037
  
1,500,000
  
1,507,020
  
Louisiana, Tobacco Settlement Financing Corp. Revenue, Series A, 5.25%, 5/15/2035
  
180,000
  
181,885
  
 
 
2,762,325
  
Maine 0.8%
  
Maine, Health & Higher Educational Facilities Authority Revenue, Maine General Medical Center, 6.75%, 7/1/2036
  
1,000,000
  
1,089,050
  
Maryland 4.1%
  
Maryland, Economic Development Corp., Pollution Control Revenue, Potomac Electric Power Co., 6.2%, 9/1/2022
  
1,500,000
  
1,777,245
  
Maryland, State Economic Development Corp. Revenue, Senior Lien Project, Chesapeake Bay:
              
 
Series A, 5.0%, 12/1/2031
  
1,000,000
  
499,750
  
 
Series B, 5.25%, 12/1/2031
  
1,000,000
  
499,750
  
Maryland, State Health & Higher Educational Facilities Authority Revenue, Anne Arundel Health Systems, Series A, 6.75%, 7/1/2039
  
500,000
  
591,080
  
Maryland, State Health & Higher Educational Facilities Authority Revenue, Washington County Hospital:
              
 
5.75%, 1/1/2033
  
1,000,000
  
1,021,990
  
 
6.0%, 1/1/2028
  
1,385,000
  
1,454,956
  
 
 
5,844,771
  
Massachusetts 4.2%
  
Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032
  
1,675,000
  
1,674,950
  
Massachusetts, Project Revenue, Health & Educational Facilities Authority, Jordan Hospital, Series E, 6.75%, 10/1/2033
  
1,790,000
  
1,791,271
  
Massachusetts, State Development Finance Agency Revenue, Linden Ponds, Inc. Facility:
              
 
Series B, 11/15/2056*
  
505,485
  
2,371
  
 
Series A-2, 5.5%, 11/15/2046
  
101,629
  
72,920
  
 
Series A-1, 6.25%, 11/15/2039
  
1,903,948
  
1,572,794
  
Massachusetts, State Health & Educational Facilities Authority Revenue, Milford Regional Medical Center, Series E, 5.0%, 7/15/2037
  
950,000
  
910,765
  
 
 
6,025,071
  
Michigan 6.0%
  
Detroit, MI, Water & Sewerage Department, Sewerage Disposal System Revenue, Series A, 5.25%, 7/1/2039
  
280,000
  
272,146
  
Detroit, MI, Water Supply Systems Revenue, Series A, 5.75%, 7/1/2037
  
1,000,000
  
1,001,390
  
Kalamazoo, MI, Economic Development Corp. Revenue, Limited Obligation, Heritage Community, 5.5%, 5/15/2036
  
1,000,000
  
892,880
  
Kentwood, MI, Economic Development, Limited Obligation, Holland Home, Series A, 5.375%, 11/15/2036
  
2,000,000
  
1,877,080
  
Michigan, State Building Authority Revenue, Facilities Program, Series I-A, 5.5%, 10/15/2045
  
2,000,000
  
2,143,180
  
Royal Oak, MI, Hospital Finance Authority Revenue, William Beaumont Hospital, 8.25%, 9/1/2039
  
1,000,000
  
1,220,700
  
Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services, Series A, ETM, 5.75%, 2/15/2023
  
1,200,000
  
1,205,616
  
 
 
8,612,992
  
Minnesota 0.8%
  
Minneapolis, MN, Health Care Systems Revenue, Fairview Health Services, Series A, 6.75%, 11/15/2032
  
1,000,000
  
1,167,360
  
Mississippi 1.2%
  
Lowndes County, MS, Solid Waste Disposal & Pollution Control Revenue, Weyerhaeuser Co. Project, Series A, 6.8%, 4/1/2022
  
250,000
  
290,280
  
Mississippi, Business Finance Corp., Pollution Control Revenue, Systems Energy Resources, Inc. Project, 5.875%, 4/1/2022
  
1,000,000
  
1,000,160
  
Warren County, MS, Gulf Opportunity Zone, International Paper Co., Series A, 6.5%, 9/1/2032
  
435,000
  
479,266
  
 
 
1,769,706
  
Missouri 1.8%
  
Missouri, State Health & Educational Facilities Authority Revenue, Lutheran Senior Services, Series C, 5.0%, 2/1/2042
  
2,000,000
  
1,988,000
  
Missouri, State Health & Educational Facilities Authority, Health Facilities Revenue, Lester E Cox Medical Centers, Series A, 5.0%, 11/15/2048
  
150,000
  
153,114
  
St. Louis, MO, Lambert-St. Louis International Airport Revenue, Series A-1, 6.625%, 7/1/2034
  
415,000
  
470,739
  
 
 
2,611,853
  
Nevada 6.7%
  
Clark County, NV, School District, Series A, 5.0%, 6/15/2022, INS: NATL
  
5,140,000
  
5,844,026
  
Henderson, NV, Health Care Facility Revenue, Catholic Healthcare West, Series B, 5.25%, 7/1/2031
  
2,000,000
  
2,045,320
  
Las Vegas Valley, NV, Water District, Series B, 5.0%, 6/1/2037
  
1,565,000
  
1,672,343
  
 
 
9,561,689
  
New Hampshire 1.3%
  
New Hampshire, State Business Finance Authority, Solid Waste Disposal Revenue, Waste Management, Inc. Project, AMT, 5.2%, 5/1/2027
  
1,750,000
  
1,825,670
  
New Jersey 5.8%
  
New Jersey, Economic Development Authority Revenue, Cigarette Tax, Prerefunded, 5.75%, 6/15/2034
  
290,000
  
294,875
  
New Jersey, Health Care Facilities Financing Authority Revenue, St. Joseph's Health Care System, 6.625%, 7/1/2038
  
715,000
  
732,060
  
New Jersey, State Economic Development Authority Revenue, The Goethals Bridge Replacement Project, AMT, 5.375%, 1/1/2043
  
1,000,000
  
1,024,660
  
New Jersey, State Economic Development Authority, Continental Airlines, Inc. Project, AMT, 4.875%, 9/15/2019
  
880,000
  
878,918
  
New Jersey, State Economic Development Authority, Special Facilities Revenue, Continental Airlines, Inc. Project, Series B, AMT, 5.625%, 11/15/2030 (a)
  
500,000
  
501,220
  
New Jersey, State Transportation Trust Fund Authority, Series B, 5.5%, 6/15/2031
  
1,500,000
  
1,682,925
  
New Jersey, Tobacco Settlement Financing Corp., Series 1A, 4.75%, 6/1/2034
  
4,280,000
  
3,264,227
  
 
 
8,378,885
  
New York 10.0%
  
New York, Metropolitan Transportation Authority Revenue:
              
 
Series D, 5.0%, 11/15/2038
  
275,000
  
292,044
  
 
Series E, 5.0%, 11/15/2042
  
305,000
  
318,893
  
New York, State Energy Research & Development Authority Facilties Revenue, Consolidated Edison Co., Inc. Project, Series A-3, AMT, 0.04% **, 6/1/2036, LOC: Scotiabank
  
1,750,000
  
1,750,000
  
New York & New Jersey, Port Authority, Special Obligation Revenue, JFK International Air Terminal LLC, 6.0%, 12/1/2042
  
680,000
  
742,125
  
New York & New Jersey Port Authority, One Hundred Forty-Seventh, AMT, 5.0%, 10/15/2023, INS: NATL
  
8,260,000
  
9,088,808
  
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
  
2,198,340
  
 
 
14,390,210
  
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
  
1,137,040
  
Ohio 1.1%
  
Ohio, American Municipal Power, Inc. Revenue, Fremont Energy Center Project, Series B, 5.0%, 2/15/2037
  
1,575,000
  
1,641,638
  
Pennsylvania 3.1%
  
Butler County, PA, Hospital Authority Revenue, Butler Health Systems Project, 7.25%, 7/1/2039
  
2,000,000
  
2,285,940
  
Montgomery County, PA, Industrial Development Authority Revenue, Whitemarsh Continuing Care, 6.25%, 2/1/2035
  
600,000
  
604,836
  
Philadelphia, PA, Redevelopment Authority Revenue, First Lien Mortgage, Series A, 6.5%, 1/1/2029
  
512,400
  
513,297
  
Westmoreland County, PA, Industrial Development Authority Revenue, Retirement Community-Redstone, Series A, Prerefunded, 5.875%, 1/1/2032
  
1,000,000
  
1,097,720
  
 
 
4,501,793
  
Puerto Rico 6.9%
  
Commonwealth of Puerto Rico, Aqueduct & Sewer Authority Revenue, Series A, 6.0%, 7/1/2038
  
4,000,000
  
3,102,120
  
Puerto Rico, Electric Power Authority Revenue, Series A, 6.75%, 7/1/2036
  
1,605,000
  
1,177,701
  
Puerto Rico, Public Buildings Authority Revenue, Series Q, 5.625%, 7/1/2039
  
1,000,000
  
758,480
  
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue:
              
 
Series A, 5.5%, 8/1/2042
  
1,000,000
  
777,660
  
 
Series A, 6.0%, 8/1/2042
  
1,000,000
  
826,610
  
 
Series A, 6.375%, 8/1/2039
  
2,000,000
  
1,719,900
  
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
  
1,497,660
  
 
 
9,860,131
  
South Carolina 1.3%
  
Hardeeville, SC, Assessment Revenue, Anderson Tract Municipal Improvement District, Series A, 7.75%, 11/1/2039
  
935,000
  
820,172
  
South Carolina, State Public Service Authority Revenue, Santee Cooper, Series A, 5.75%, 12/1/2043
  
890,000
  
1,004,392
  
 
 
1,824,564
  
Tennessee 1.6%
  
Clarksville, TN, Natural Gas Acquisition Corp., Gas Revenue:
              
 
5.0%, 12/15/2017, GTY: Merrill Lynch & Co., Inc.
  
500,000
  
568,335
  
 
5.0%, 12/15/2018, GTY: Merrill Lynch & Co., Inc.
  
540,000
  
611,172
  
Johnson City, TN, Health & Educational Facilities Board Hospital Revenue, Mountain States Health Alliance, Series A, 7.75%, 7/1/2038
  
1,000,000
  
1,147,390
  
 
 
2,326,897
  
Texas 18.2%
  
Brazos River, TX, Harbor Navigation District, Brazoria County Environmental Health, Dow Chemical Co. Project:
              
 
Series B-2, 4.95%, 5/15/2033
  
1,000,000
  
1,024,380
  
 
Series A-3, AMT, 5.125%, 5/15/2033
  
1,000,000
  
1,017,990
  
Central Texas, Regional Mobility Authority Revenue, Series A, 5.0%, 1/1/2043
  
1,500,000
  
1,499,895
  
Central Texas, Regional Mobility Authority Revenue, Senior Lien, 6.0%, 1/1/2041
  
545,000
  
577,825
  
Dallas-Fort Worth, International Airport Revenue:
              
 
Series F, AMT, 5.0%, 11/1/2035
  
1,000,000
  
1,017,810
  
 
Series D, AMT, 5.0%, 11/1/2038
  
2,000,000
  
2,031,060
  
Houston, TX, Transportation/Tolls Revenue, Special Facilities, Continental Airlines, Inc., Series E, AMT, 6.75%, 7/1/2029
  
2,000,000
  
2,000,360
  
Matagorda County, TX, Navigation District No. 1, Pollution Control Revenue, AEP Texas Central Co. Project, Series A, 4.4%, 5/1/2030, INS: AMBAC
  
2,250,000
  
2,198,678
  
North Texas, Tollway Authority Revenue, Toll Second Tier, Series F, 5.75%, 1/1/2033
  
2,000,000
  
2,140,660
  
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
  
1,928,265
  
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
  
965,780
  
Tarrant County, TX, Cultural Education Facilities Finance Corp., Hospital Revenue, Scott & White Healthcare, 5.0%, 8/15/2043
  
2,100,000
  
2,152,479
  
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility, Mirador Project, Series A, 8.25%, 11/15/2044
  
570,000
  
552,609
  
Texas, Grand Parkway Transportation Corp., System Toll Revenue, Series B, 5.0%, 4/1/2053
  
500,000
  
513,980
  
Texas, Love Field Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project, 5.25%, 11/1/2040
  
1,055,000
  
1,076,332
  
Texas, SA Energy Acquisition Public Facility Corp., Gas Supply Revenue, 5.5%, 8/1/2020, GTY: The Goldman Sachs Group, Inc.
  
2,000,000
  
2,314,200
  
Texas, State Municipal Gas Acquisition & Supply Corp., III Gas Supply Revenue:
              
 
5.0%, 12/15/2030
  
165,000
  
169,359
  
 
5.0%, 12/15/2031
  
1,000,000
  
1,022,790
  
 
5.0%, 12/15/2032
  
1,000,000
  
1,019,180
  
Texas, State Private Activity Bond, Surface Transportation Corp. Revenue, Senior Lien, North Tarrant Express Mobility Partners Segments LLC, AMT, 6.75%, 6/30/2043
  
280,000
  
306,732
  
Travis County, TX, Health Facilities Development Corp. Revenue, Westminster Manor Health, 7.125%, 11/1/2040
  
510,000
  
553,207
  
 
 
26,083,571
  
Virgin Islands 1.1%
  
Virgin Islands, Public Finance Authority Revenue, Gross Receipts Tax Loan Note, Series A, 5.0%, 10/1/2032
  
1,500,000
  
1,516,110
  
Virginia 1.8%
  
Virginia, Route 460 Funding Corp., Toll Road Revenue, Series A, 5.0%, 7/1/2052
  
1,000,000
  
1,002,150
  
Washington County, VA, Industrial Development Authority, Hospital Facility Revenue, Mountain States Health Alliance, Series C, 7.75%, 7/1/2038
  
1,370,000
  
1,575,144
  
 
 
2,577,294
  
Washington 3.3%
  
Washington, State Health Care Facilities Authority Revenue, Series C, 5.375%, 8/15/2028, INS: Radian
  
595,000
  
606,930
  
Washington, State Health Care Facilities Authority Revenue, Virginia Mason Medical Center, Series A, 6.125%, 8/15/2037
  
2,000,000
  
2,079,080
  
Washington, State Health Care Facilities Authority, Catholic Health Initiatives, Series A, 5.0%, 2/1/2041
  
1,000,000
  
1,020,480
  
Washington, State Housing Finance Commission, Rockwood Retirement Communities Project, Series A, 7.375%, 1/1/2044
  
1,000,000
  
1,009,070
  
 
 
4,715,560
  
Wisconsin 2.5%
  
Wisconsin, State Health & Educational Facilities Authority Revenue, Agnesian Healthcare, Inc., Series B, 5.0%, 7/1/2036
  
500,000
  
516,555
  
Wisconsin, State Health & Educational Facilities Authority Revenue, Prohealth Care, Inc. Obligation Group, 6.625%, 2/15/2039
  
1,110,000
  
1,220,068
  
Wisconsin, State Health & Educational Facilities Authority Revenue, Thedacare, Inc., Series A, 5.5%, 12/15/2038
  
1,765,000
  
1,847,637
  
 
 
3,584,260
  
 
Total Municipal Bonds and Notes (Cost $187,429,059)
  
204,153,357
  
 
 
Municipal Inverse Floating Rate Notes (b) 12.2%
  
California 3.1%
  
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2027, INS: AGMC (c)
  
2,121,349
  
2,371,736
  
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2028, INS: AGMC (c)
  
1,930,312
  
2,158,149
  
 
Trust: San Diego County, CA, Water Utility Improvements, Certificates of Participation, Series 2008-1104, 144A, 9.364%, 11/1/2015, Leverage Factor at purchase date: 2 to 1
      
 
 
4,529,885
  
New York 4.3%
  
New York, State Dormitory Authority, State Personal Income Tax Revenue, Series A, 5.0%, 3/15/2023 (c)
  
5,535,000
  
6,148,514
  
 
Trust: New York, State Dormitory Authority Revenue, Secondary Issues, Series 1955-2, 144A, 18.273%, 3/15/2015, Leverage Factor at purchase date: 4 to 1
      
Tennessee 4.8%
  
Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2024 (c)
  
5,918,585
  
6,865,903
  
 
Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-1, 144A, 18.286%, 1/1/2016, Leverage Factor at purchase date: 4 to 1
      
 
Total Municipal Inverse Floating Rate Notes (Cost $15,749,093)
  
17,544,302
  
         
 
% of
Net Assets
  
Value ($)
  
 
Total Investment Portfolio (Cost $203,178,152) †
154.3
  
221,697,659
  
MTPS, at Liquidation Value
(42.1)
  
(60,475,000)
  
Other Assets and Liabilities, Net
(5.6)
  
(7,981,608)
  
ARPS, at Liquidation Value
(6.6)
  
(9,525,000)
  
 
Net Assets Applicable to Common Shareholders
100.0
  
143,716,051
  

 
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.
The following table represents bonds that are in default:
  

Security
  
Coupon
  
Maturity
Date
  
Principal Amount ($)
    
Cost ($)
    
Value ($)
  
Florida, Tolomato Community Development District, Special Assessment, Series 2 *
     6.55 %
5/1/2027
     400,000       141,280       228,760  
Florida, Tolomato Community Development District, Special Assessment, Series 1 *
     6.55 %
5/1/2027
     10,000       4,160       9,949  
Florida, Tolomato Community Development District, Special Assessment, Series 3 *
     6.55 %
5/1/2027
     130,000       1       1  
                        145,441       238,710  
   

*
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 February 28, 2014.
†
The cost for federal income tax purposes was $201,984,049.  At February 28, 2014, net unrealized appreciation for all securities based on tax cost was $19,713,610.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $23,828,158 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $4,114,548.
(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.

 
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, 2014 in valuing the Fund's investments.

Assets
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Municipal Bonds and Notes(d)
   $ —     $ 221,697,659     $ —     $ 221,697,659  
Total
   $ —     $ 221,697,659     $ —     $ 221,697,659  

There have been no transfers between fair value measurement levels during the period ended February 28, 2014.
(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/Brian E. Binder
Brian E. Binder
President
   
Date:
April 22, 2014


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/Brian E. Binder
Brian E. Binder
President
   
Date:
April 22, 2014
   
   
   
By:
/s/Paul Schubert
Paul Schubert
Chief Financial Officer and Treasurer
   
Date:
April 22, 2014