nq022811smit.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
100 Plaza One
Jersey City, NJ 07311
(Name and address of agent for service)
 
Registrant's telephone number, including area code:  (201) 593-6408
 
Date of fiscal year end:  11/30
 
Date of reporting period: 02/28/11

ITEM 1.
SCHEDULE OF INVESTMENTS


  Investment Portfolio  
as of February 28, 2011  (Unaudited)

DWS Strategic Municipal Income Trust
 
Principal
Amount ($)
  
Value ($)
  
 
 
Municipal Bonds and Notes 148.2%
  
Alabama 0.6%
  
Sylacauga, AL, Health Care Authority Revenue, Coosa Valley Medical Center, Series A, 6.0%, 8/1/2035
  
1,000,000
  
791,180
  
Arizona 2.5%
  
Arizona, Project Revenue, Health Facilities Authority, The New Foundation Project, 8.25%, 3/1/2019
  
1,525,000
  
1,526,022
  
Maricopa County, AZ, Pollution Control Corp. Revenue, El Paso Electric Co. Project, Series B, 7.25%, 4/1/2040
  
1,570,000
  
1,707,862
  
 
 
3,233,884
  
California 14.3%
  
California, Health Facilities Financing Authority Revenue, Catholic Healthcare West, Series A, 6.0%, 7/1/2034
  
1,000,000
  
1,013,650
  
California, M-S-R Energy Authority, Series B, 7.0%, 11/1/2034
  
1,310,000
  
1,444,262
  
California, Morongo Band of Mission Indians, Enterprise Casino Revenue, Series B, 144A, 6.5%, 3/1/2028
  
1,000,000
  
936,140
  
California, South Bayside Waste Management Authority, Solid Waste Enterprise, Shoreway Environmental, Series A, 6.25%, 9/1/2029
  
1,425,000
  
1,486,517
  
California, Special Assessment Revenue, Golden State Tobacco Securitization Corp., Series 2003-A-1, Prerefunded, 6.75%, 6/1/2039
  
4,000,000
  
4,518,520
  
California, State General Obligation:
          
 
5.5%, 3/1/2040
  
1,000,000
  
993,540
  
 
5.75%, 4/1/2031
  
1,000,000
  
1,033,560
  
 
6.0%, 4/1/2038
  
1,000,000
  
1,033,890
  
 
6.5%, 4/1/2033
  
1,950,000
  
2,120,957
  
California, State Public Works Board Lease Revenue, Capital Projects, Series I-1, 6.375%, 11/1/2034
  
1,000,000
  
1,027,010
  
California, State Public Works Board Lease Revenue, Riverside Campus Project, Series B, 6.125%, 4/1/2028
  
2,000,000
  
2,062,860
  
Sacramento County, CA, Sales & Special Tax Revenue, Bradshaw Road Project, 7.2%, 9/2/2015
  
655,000
  
662,768
  
 
 
18,333,674
  
Colorado 0.5%
  
Colorado, Public Energy Authority, Natural Gas Purchased Revenue, 6.25%, 11/15/2028, GTY: Merrill Lynch & Co., Inc.
  
635,000
  
654,279
  
Connecticut 3.9%
  
Connecticut, Harbor Point Infrastructure Improvement District, Special Obligation Revenue, Harbor Point Project, Series A, 7.875%, 4/1/2039
  
2,000,000
  
2,025,360
  
Greenwich, CT, Multi-Family Housing Revenue, 6.35%, 9/1/2027
  
2,000,000
  
2,031,260
  
Mashantucket, CT, Mashantucket Western Pequot Tribe, Special Revenue, Series A, 144A, 6.5%, 9/1/2031 *
  
705,000
  
268,711
  
Mashantucket, CT, Sports Expo & Entertainment Revenue, Mashantucket Western Pequot Tribe:
          
 
Series B, 144A, Zero Coupon, 9/1/2017 *
  
2,000,000
  
499,640
  
 
Series B, 144A, Zero Coupon, 9/1/2018 *
  
1,000,000
  
235,310
  
 
 
5,060,281
  
Florida 10.0%
  
Florida, Capital Region Community Development District, Capital Improvement Revenue, Series A, 7.0%, 5/1/2039
  
495,000
  
447,965
  
Florida, Middle Village Community Development District, Special Assessment, Series A, 6.0%, 5/1/2035
  
1,000,000
  
869,500
  
Florida, Tolomato Community Development District, Special Assessment:
          
 
5.4%, 5/1/2037
  
1,910,000
  
1,344,774
  
 
6.55%, 5/1/2027
  
850,000
  
593,181
  
Hillsborough County, FL, Industrial Development Authority Revenue, Health Facilities, University Community Hospital, Series A, Prerefunded, 5.625%, 8/15/2029
  
1,875,000
  
2,277,375
  
Miami Beach, FL, Health Facilities Authority Hospital Revenue, Mount Sinai Medical Center, 144A, 6.75%, 11/15/2029
  
1,600,000
  
1,551,920
  
Miami-Dade County, FL, Aviation Revenue, Series A, 5.5%, 10/1/2041
  
3,000,000
  
2,844,960
  
Orlando & Orange County, FL, Expressway Authority Revenue, Series C, 5.0%, 7/1/2035
  
1,080,000
  
1,010,696
  
Orlando, FL, Greater Aviation Authority, Airport Facilities Revenue, Jet Blue Airways Corp., AMT, 6.5%, 11/15/2036
  
1,000,000
  
933,860
  
Orlando, FL, Special Assessment Revenue, Conroy Road Interchange Project, Series A, 5.8%, 5/1/2026
  
1,000,000
  
915,870
  
 
 
12,790,101
  
Georgia 5.8%
  
Americus-Sumter County, GA, Hospital & Healthcare Revenue, Hospital Authority, South Georgia Methodist, Series A, 6.375%, 5/15/2029
  
1,250,000
  
1,058,750
  
Atlanta, GA, Tax Allocation, Beltline Project, Series B, 7.375%, 1/1/2031
  
1,000,000
  
987,050
  
Atlanta, GA, Water & Wastewater Revenue, Series A, 6.25%, 11/1/2034
  
2,000,000
  
2,083,300
  
Gainesville & Hall County, GA, Development Authority Retirement Community Revenue, ACTS Retirement, Life Community, Series A-2, 6.625%, 11/15/2039
  
1,000,000
  
1,009,410
  
Georgia, Main Street Natural Gas, Inc., Gas Project Revenue, Series A, 5.5%, 9/15/2024
  
1,220,000
  
1,200,870
  
Georgia, Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare System, 6.5%, 8/1/2038, INS: AGC
  
1,000,000
  
1,061,170
  
 
 
7,400,550
  
Guam 2.3%
  
Guam, Government General Obligation, Series A, 7.0%, 11/15/2039
  
1,000,000
  
1,044,900
  
Guam, Government Waterworks Authority, Water & Wastewater System Revenue, 6.0%, 7/1/2025
  
1,000,000
  
973,410
  
Guam, Power Authority Revenue, Series A, 5.5%, 10/1/2030
  
1,000,000
  
946,080
  
 
 
2,964,390
  
Hawaii 0.4%
  
Hawaii, State Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., 6.5%, 7/1/2039, GTY: Hawaiian Electric Co.
  
500,000
  
493,380
  
Idaho 0.3%
  
Idaho, Health Facilities Authority Revenue, St. Luke's Regional Medical Center, 6.75%, 11/1/2037
  
305,000
  
326,609
  
Illinois 7.1%
  
Illinois, Finance Authority Revenue, Elmhurst Memorial Healthcare, Series A, 5.625%, 1/1/2037
  
3,000,000
  
2,583,120
  
Illinois, Finance Authority Revenue, Friendship Village of Schaumburg, Series A, 5.625%, 2/15/2037
  
2,000,000
  
1,534,940
  
Illinois, Finance Authority Revenue, Park Place of Elmhurst, Series A, 8.0%, 5/15/2030
  
1,000,000
  
961,060
  
Illinois, Finance Authority Revenue, Roosevelt University Project, 6.5%, 4/1/2044
  
1,000,000
  
1,005,140
  
Illinois, Finance Authority Revenue, The Admiral at Lake Project, Series A, 8.0%, 5/15/2040
  
1,000,000
  
949,220
  
Illinois, Finance Authority Revenue, Three Crowns Park Plaza, Series A, 5.875%, 2/15/2038
  
1,000,000
  
850,570
  
Illinois, Railsplitter Tobacco Settlement Authority Revenue, 6.0%, 6/1/2028
  
365,000
  
358,047
  
Illinois, Upper River Valley Development Authority, Solid Waste Disposal Revenue, Waste Recovery Project, AMT, 5.9%, 2/1/2014, GTY: GreenGold Ray Energies, Inc.
  
630,000
  
602,652
  
University Park, IL, Sales & Special Tax Revenue, Governors Gateway Industrial Park, 8.5%, 12/1/2011
  
225,000
  
225,967
  
 
 
9,070,716
  
Indiana 1.0%
  
Indiana, Finance Authority Hospital Revenue, Deaconess Hospital Obligation, Series A, 6.75%, 3/1/2039
  
525,000
  
556,931
  
Vigo County, IN, Hospital Authority Revenue, Union Hospital, Inc., 144A, 5.7%, 9/1/2037
  
1,000,000
  
748,260
  
 
 
1,305,191
  
Iowa 1.7%
  
Cedar Rapids, IA, First Mortgage Revenue, Cottage Grove Place, Series A, 5.875%, 7/1/2028
  
1,670,000
  
1,137,570
  
Iowa, Finance Authority Retirement Community Revenue, Edgewater LLC Project, 6.5%, 11/15/2027
  
1,000,000
  
911,660
  
Lake City, IA, Senior Care Revenue, Health Care Facility, Opportunity Living Project, 144A, 6.45%, 5/1/2011
  
175,000
  
175,149
  
 
 
2,224,379
  
Kansas 1.3%
  
Lenexa, KS, Health Care Facility Revenue, Lakeview Village, Inc. Project, 7.25%, 5/15/2039
  
300,000
  
265,527
  
Wyandotte County, KS, Unified Government Special Obligation Revenue, Sales Tax, Series B, 5.0%, 12/1/2020
  
1,375,000
  
1,392,311
  
 
 
1,657,838
  
Kentucky 4.3%
  
Kentucky, Economic Development Finance Authority, Health System Revenue, Norton Healthcare, Series A, 6.625%, 10/1/2028
  
215,000
  
216,374
  
Kentucky, Economic Development Finance Authority, Hospital Facilities Revenue, Owensboro Medical Health Systems, Series A, 6.5%, 3/1/2045
  
2,000,000
  
1,910,660
  
Kentucky, Economic Development Finance Authority, Louisville Arena Project Revenue, Series A-1, 6.0%, 12/1/2033, INS: AGC
  
365,000
  
377,417
  
Louisville & Jefferson County, KY, Metropolitan Government Health Systems Revenue, Norton Healthcare, Inc., 5.0%, 10/1/2030
  
3,425,000
  
3,065,923
  
 
 
5,570,374
  
Louisiana 4.4%
  
Louisiana, Local Government Environmental Facilities, Community Development Authority Revenue, 6.75%, 11/1/2032
  
1,000,000
  
1,032,720
  
Louisiana, St. John Baptist Parish Revenue, Marathon Oil Corp., Series A, 5.125%, 6/1/2037
  
1,500,000
  
1,386,975
  
Morehouse Parish, LA, Pollution Control Revenue, International Paper Co. Project, Series A, 5.25%, 11/15/2013
  
3,000,000
  
3,207,630
  
 
 
5,627,325
  
Maryland 4.6%
  
Maryland, Economic Development Corp., Pollution Control Revenue, Potomac Electric Power Co., 6.2%, 9/1/2022
  
1,500,000
  
1,701,465
  
Maryland, State Economic Development Corp. Revenue, Senior Lien Project, Chesapeake Bay:
          
 
Series A, 5.0%, 12/1/2031
  
1,000,000
  
630,210
  
 
Series B, 5.25%, 12/1/2031
  
1,000,000
  
652,990
  
Maryland, State Health & Higher Educational Facilities Authority Revenue, Anne Arundel Health Systems, Series A, 6.75%, 7/1/2039
  
500,000
  
544,805
  
Maryland, State Health & Higher Educational Facilities Authority Revenue, Washington County Hospital:
          
 
5.75%, 1/1/2033
  
1,000,000
  
947,590
  
 
6.0%, 1/1/2028
  
1,385,000
  
1,387,950
  
 
 
5,865,010
  
Massachusetts 7.1%
  
Massachusetts, Development Finance Agency, Senior Living Facility Revenue, Groves-Lincoln:
          
 
Series A, 7.75%, 6/1/2039
  
250,000
  
244,770
  
 
Series A, 7.875%, 6/1/2044
  
250,000
  
246,850
  
Massachusetts, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, Civic Investments, Series A, Prerefunded, 9.0%, 12/15/2015, GTY: Harvard Pilgrim Health Care, Inc.
  
1,400,000
  
1,585,514
  
Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032
  
1,800,000
  
1,628,928
  
Massachusetts, Project Revenue, Health & Educational Facilities Authority, Jordan Hospital, Series E, 6.75%, 10/1/2033
  
1,790,000
  
1,636,615
  
Massachusetts, State Development Finance Agency Revenue, Linden Ponds, Inc. Facility, Series A, 5.75%, 11/15/2035
  
2,700,000
  
1,538,730
  
Massachusetts, State Development Finance Agency Revenue, YMCA of Greater Worcester, 0.25% **, 9/1/2041, LOC: TD Bank NA
  
1,500,000
  
1,500,000
  
Massachusetts, State Health & Educational Facilities Authority Revenue, Milford Regional Medical Center, Series E, 5.0%, 7/15/2037
  
950,000
  
746,377
  
Massachusetts, State Health & Educational Facilities Authority Revenue, Partners Healthcare Systems, Series C, 5.75%, 7/1/2032
  
35,000
  
35,194
  
 
 
9,162,978
  
Michigan 3.7%
  
Kalamazoo, MI, Economic Development Corp. Revenue, Limited Obligation, Heritage Community, 5.5%, 5/15/2036
  
1,000,000
  
744,330
  
Kentwood, MI, Economic Development, Limited Obligation, Holland Home, Series A, 5.375%, 11/15/2036
  
2,000,000
  
1,542,560
  
Royal Oak, MI, Hospital Finance Authority Revenue, William Beaumont Hospital, 8.25%, 9/1/2039
  
1,000,000
  
1,119,040
  
Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services:
          
 
Series A, ETM, 5.6%, 2/15/2013
  
100,000
  
103,438
  
 
Series A, ETM, 5.75%, 2/15/2023
  
1,300,000
  
1,305,382
  
 
 
4,814,750
  
Minnesota 0.8%
  
Minneapolis, MN, Health Care Systems Revenue, Fairview Health Services, Series A, 6.75%, 11/15/2032
  
1,000,000
  
1,077,610
  
Mississippi 1.3%
  
Lowndes County, MS, Solid Waste Disposal & Pollution Control Revenue, Weyerhaeuser Co. Project, Series A, 6.8%, 4/1/2022
  
250,000
  
259,870
  
Mississippi, Business Finance Corp., Pollution Control Revenue, Systems Energy Resources, Inc. Project, 5.875%, 4/1/2022
  
1,000,000
  
985,230
  
Warren County, MS, Gulf Opportunity Zone, International Paper Co., Series A, 6.5%, 9/1/2032
  
435,000
  
452,517
  
 
 
1,697,617
  
Missouri 2.3%
  
Branson, MO, Regional Airport Transportation Development District, Airport Revenue, Series B, AMT, 6.0%, 7/1/2037
  
250,000
  
92,862
  
Kirkwood, MO, Industrial Development Authority, Retirement Community Revenue, Aberdeen Heights, Series C-3, 6.5%, 5/15/2015
  
825,000
  
824,233
  
Missouri, State Health & Educational Facilities Authority Revenue, Lutheran Senior Services, Series C, 5.0%, 2/1/2042
  
2,000,000
  
1,664,260
  
St. Louis, MO, Lambert-St. Louis International Airport Revenue, Series A-1, 6.625%, 7/1/2034
  
415,000
  
422,931
  
 
 
3,004,286
  
Nevada 6.5%
  
Clark County, NV, School District, Series A, 5.0%, 6/15/2022, INS: FGIC, NATL
  
6,140,000
  
6,491,699
  
Henderson, NV, Health Care Facility Revenue, Catholic Healthcare West, Series B, 5.25%, 7/1/2031
  
2,000,000
  
1,867,200
  
Nevada, Director State Department of Business & Industry, Las Vegas Monorail Project, Second Tier, 7.375%, 1/1/2030 *
  
2,000,000
  
4,000
  
 
 
8,362,899
  
New Hampshire 2.3%
  
New Hampshire, Hospital & Healthcare Revenue, Rivermead at Peterborough Retirement Community, 5.75%, 7/1/2028
  
1,500,000
  
1,238,610
  
New Hampshire, State Business Finance Authority, Solid Waste Disposal Revenue, Waste Management, Inc. Project, AMT, 5.2%, 5/1/2027
  
1,750,000
  
1,697,745
  
 
 
2,936,355
  
New Jersey 1.3%
  
New Jersey, Economic Development Authority Revenue, Cigarette Tax, 5.75%, 6/15/2034
  
290,000
  
250,087
  
New Jersey, Health Care Facilities Financing Authority Revenue, St. Joseph's Health Care System, 6.625%, 7/1/2038
  
1,430,000
  
1,405,905
  
 
 
1,655,992
  
New York 10.6%
  
Nassau County, NY, Project Revenue, North Shore Healthcare Systems Project, Series B, 5.875%, 11/1/2011
  
130,000
  
132,597
  
New York & New Jersey Port Authority, One Hundred Forty-Seventh, AMT, 5.0%, 10/15/2023, INS: FGIC, NATL
  
8,260,000
  
8,318,894
  
New York & New Jersey Port Authority, Special Obligation Revenue, JFK International Air Terminal LLC, 6.0%, 12/1/2042
  
680,000
  
662,796
  
New York City, NY, Industrial Development Agency Revenue, Liberty-7, World Trade Center, Series A, 6.25%, 3/1/2015
  
2,000,000
  
2,000,940
  
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
  
2,067,840
  
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Series F-2, 0.27% **, 6/15/2033, SPA: JPMorgan Chase Bank
  
500,000
  
500,000
  
 
 
13,683,067
  
North Carolina 1.6%
  
North Carolina, Electric Revenue, Municipal Power Agency, Series C, 5.375%, 1/1/2017
  
1,000,000
  
1,052,140
  
North Carolina, Medical Care Commission, Health Care Facilities Revenue, University Health Systems, Series D, 6.25%, 12/1/2033
  
1,000,000
  
1,047,390
  
 
 
2,099,530
  
Ohio 4.1%
  
Buckeye, OH, Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/1/2030
  
7,350,000
  
5,305,010
  
Pennsylvania 3.2%
  
Butler County, PA, Hospital Authority Revenue, Butler Health Systems Project, 7.25%, 7/1/2039
  
2,000,000
  
2,182,520
  
Montgomery County, PA, Industrial Development Authority Revenue, Whitemarsh Continuing Care, 6.25%, 2/1/2035
  
600,000
  
487,176
  
Philadelphia, Redevelopment Authority Revenue, First Lien Mortgage, Series A, 6.5%, 1/1/2029
  
566,100
  
566,525
  
Westmoreland County, PA, Industrial Development Authority Revenue, Retirement Community-Redstone, Series A, 5.875%, 1/1/2032
  
1,000,000
  
810,180
  
 
 
4,046,401
  
Puerto Rico 8.1%
  
Commonwealth of Puerto Rico, Aqueduct & Sewer Authority Revenue, Series A, 6.0%, 7/1/2038
  
4,000,000
  
3,750,240
  
Commonwealth of Puerto Rico, Highway & Transportation Authority Revenue, Series L, 5.25%, 7/1/2038, INS: AMBAC
  
1,300,000
  
1,133,600
  
Puerto Rico, Public Buildings Authority Revenue, Series Q, 5.625%, 7/1/2039
  
1,000,000
  
936,220
  
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue:
          
 
Series A, 5.375%, 8/1/2039
  
1,000,000
  
925,420
  
 
Series A, 6.5%, 8/1/2044
  
2,000,000
  
2,084,040
  
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
  
1,619,480
  
 
 
10,449,000
  
South Carolina 2.0%
  
Hardeeville, SC, Assessment Revenue, Anderson Tract Municipal Improvement District, Series A, 7.75%, 11/1/2039
  
983,000
  
788,071
  
South Carolina, Jobs Economic Development Authority Revenue, Bon Secours Health System, Series B, 5.625%, 11/15/2030
  
1,585,000
  
1,532,648
  
South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Palmetto Health Alliance, Series C, Prerefunded, 7.0%, 8/1/2030
  
170,000
  
194,871
  
 
 
2,515,590
  
South Dakota 1.6%
  
South Dakota, Hospital & Healthcare Revenue, Sioux Valley Hospital, Series E, 5.375%, 11/1/2024
  
2,000,000
  
2,010,420
  

Tennessee 4.5%
  
Clarksville, TN, Natural Gas Acquisition Corp., Gas Revenue:
            
 
5.0%, 12/15/2017
  
500,000
  
514,850
  
 
5.0%, 12/15/2018
  
540,000
  
545,762
  
Jackson, TN, Energy Authority, Water Systems Revenue, 0.25% **, 12/1/2023, LOC: US Bank NA
  
1,500,000
  
1,500,000
  
Johnson City, TN, Health & Educational Facilities Board Hospital Revenue, Mountain States Health Alliance, Series A, 7.75%, 7/1/2038
  
1,000,000
  
1,075,080
  
Johnson City, TN, Hospital & Healthcare Revenue, Health & Educational Facilities Board Hospital, Series A, Prerefunded, 7.5%, 7/1/2033
  
2,000,000
  
2,201,680
  
 
 
5,837,372
  
Texas 12.9%
  
Abilene, TX, Senior Care Revenue, Health Facilities Development, Sears Methodist Retirement Facilities, Series A, 5.9%, 11/15/2025
  
2,500,000
  
1,955,375
  
Austin, TX, Austin-Bergstrom Landhost Enterprises, Inc., Airport Hotel Project, Series A, 3.375%, 4/1/2027 (a)
  
1,960,000
  
1,110,889
  
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
  
884,840
  
 
Series A-3, AMT, 5.125%, 5/15/2033
  
1,000,000
  
894,650
  
Houston, TX, Transportation/Tolls Revenue, Special Facilities, Continental Airlines, Inc., Series E, AMT, 6.75%, 7/1/2029
  
2,000,000
  
1,957,020
  
Matagorda County, TX, Navigation District No. 1, Pollution Control Revenue, AEP Texas Central Co. Project, Series A, 4.4%, 5/1/2030, INS: AMBAC
  
2,250,000
  
1,984,882
  
North Texas, Tollway Authority Revenue, Toll Second Tier, Series F, 5.75%, 1/1/2033
  
2,000,000
  
1,932,320
  
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
  
808,370
  
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility, Mirador Project, Series A, 8.25%, 11/15/2044
  
1,000,000
  
974,860
  
Texas, Industrial Development Revenue, Waste Disposal Authority, Series A, AMT, 6.1%, 8/1/2024
  
1,000,000
  
1,003,590
  
Texas, Love Field Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project, 5.25%, 11/1/2040
  
555,000
  
496,875
  
Texas, SA Energy Acquisition Public Facility Corp., Gas Supply Revenue, 5.5%, 8/1/2020
  
2,000,000
  
2,031,360
  
Travis County, TX, Health Facilities Development Corp. Revenue, Westminster Manor Health, 7.125%, 11/1/2040
  
510,000
  
494,353
  
 
 
16,529,384
  
Virgin Islands 2.4%
  
Virgin Islands, Sales & Special Tax Revenue, Public Finance Authority, Series A, 6.375%, 10/1/2019
  
3,000,000
  
3,035,070
  
Virginia 1.2%
  
Washington County, VA, Industrial Development Authority, Hospital Facility Revenue, Mountain States Health Alliance, Series C, 7.75%, 7/1/2038
  
1,370,000
  
1,508,178
  
Washington 1.9%
  
Washington, State Health Care Facilities Authority Revenue, Series C, 5.375%, 8/15/2028, INS: Radian
  
595,000
  
546,632
  
Washington, State Health Care Facilities Authority Revenue, Virginia Mason Medical Center, Series A, 6.125%, 8/15/2037
  
2,000,000
  
1,930,220
  
 
 
2,476,852
  
Wisconsin 3.8%
  
Wisconsin, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, Aurora Health Care, Inc., 6.875%, 4/15/2030
  
1,000,000
  
1,023,170
  
Wisconsin, State Health & Educational Facilities Authority Revenue, Aurora Health Care, Inc., Series A, 5.6%, 2/15/2029
  
1,000,000
  
984,410
  
Wisconsin, State Health & Educational Facilities Authority Revenue, Prohealth Care, Inc. Obligation Group, 6.625%, 2/15/2039
  
1,110,000
  
1,164,112
  
Wisconsin, State Health & Educational Facilities Authority Revenue, Thedacare, Inc., Series A, 5.5%, 12/15/2038
  
1,765,000
  
1,685,151
  
 
 
4,856,843
  
 
Total Municipal Bonds and Notes (Cost $188,195,661)
  
190,434,365
  
 
 
Municipal Inverse Floating Rate Notes (b) 12.7%
  
California 3.2%
  
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2027, INS: AGMC (c)
  
2,121,349
  
2,143,053
  
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2028, INS: AGMC (c)
  
1,930,312
  
1,950,060
  
 
Trust: San Diego County, CA, Water Utility Improvements, Certificates of Participation, Series 2008-1104, 144A, 9.123%, 5/1/2027, Leverage Factor at purchase date: 2 to 1
      
 
 
4,093,113
  
New York 4.6%
  
New York, State Dormitory Authority, State Personal Income Tax Revenue, Series A, 5.0%, 3/15/2023 (c)
  
5,535,000
  
5,903,480
  
 
Trust: New York, State Dormitory Authority Revenue, Secondary Issues, Series 1955-2, 144A, 17.614%, 3/15/2023, Leverage Factor at purchase date: 4 to 1
      
Tennessee 4.9%
  
Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2024 (c)
  
5,918,585
  
6,385,318
  
 
Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-1, 144A, 17.626%, 1/1/2024, Leverage Factor at purchase date: 4 to 1
      
 
Total Municipal Inverse Floating Rate Notes (Cost $15,929,238)
  
16,381,911
  

 
% of
Net Assets
  
Value ($)
  
 
Total Investment Portfolio (Cost $204,124,899) †
160.9
  
206,816,276
  
Other Assets and Liabilities, Net
(6.4)
  
(8,286,015)
  
Preferred Shares, at Redemption Value
(54.5)
  
(70,000,000)
  
 
Net Assets Applicable to Common Shareholders
100.0
  
128,530,261
  

For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.
*
Non-income producing security.  In the case of a bond, generally denotes that the issuer has defaulted on the payment of principal or interest.

The following table represents bonds that are in default:

Security
  
Coupon
  
Maturity
Date
  
Principal Amount ($)
    
Acquisition
Cost ($)
    
Value ($)
  
Mashantucket, CT, Mashantucket Western Pequot Tribe, Special Revenue, Series A, 144A
     6.5 %
9/1/2031
     705,000       735,378       268,711  
Mashantucket, CT, Sports Expo & Entertainment Revenue, Mashantucket Western Pequot Tribe, Series B, 144A
     0.0 %
9/1/2017
     2,000,000       930,679       499,640  
Mashantucket, CT, Sports Expo & Entertainment Revenue, Mashantucket Western Pequot Tribe, Series B, 144A
     0.0 %
9/1/2018
     1,000,000       436,601       235,310  
Nevada, Director State Department of Business & Industry, Las Vegas Monorail Project, Second Tier
     7.375 %
1/1/2030
     2,000,000       1,933,273       4,000  
Austin, TX, Austin-Bergstrom Landhost Enterprises, Inc., Airport Hotel Project,          Series A (a)
     3.375 %
4/1/2027
     1,960,000       1,960,000       1,110,889  
                        5,995,931       2,118,550  

**
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, 2011.
†
The cost for federal income tax purposes was $203,433,982.  At February 28, 2011, net unrealized appreciation for all securities based on tax cost was $3,382,294.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $12,950,187 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $9,567,893.
(a)
Partial interest paying security.  The rate shown represents 50% of the original coupon rate.
(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 US Treasury securities which are held in escrow and used to pay principal and interest on bonds so designated.
FGIC: Financial Guaranty Insurance Co.
GTY: Guaranty Agreement
INS: Insured
LOC: Letter of Credit
NATL: National Public Finance Guarantee Corp.
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.
Radian: Radian Asset Assurance, Inc.
SPA: Standby Bond Purchase Agreement
 

 
Fair Value Measurements

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

The following is a summary of the inputs used as of February 28, 2011 in valuing the Fund's investments.

   
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets
                        
Municipal Bonds and Notes(d)
   $ —     $ 206,816,276     $ —     $ 206,816,276  
Total
   $ —     $ 206,816,276     $ —     $ 206,816,276  

There have been no transfers between Level 1 and Level 2 fair value measurements during the period ended February 28, 2011.
(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/Michael G. Clark
Michael G. Clark
President
   
Date:
April 18, 2011


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/Michael G. Clark
Michael G. Clark
President
   
Date:
April 18, 2011
   
   
   
By:
/s/Paul Schubert
Paul Schubert
Chief Financial Officer and Treasurer
   
Date:
April 18, 2011