UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number: 811-05767
DWS Strategic Municipal Income Trust
(Exact Name of Registrant as Specified in Charter)
875 Third Avenue
New York, NY 10022-6225
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 454-4500
Diane Kenneally
100 Summer Street
Boston, MA 02110
(Name and Address of Agent for Service)
Date of fiscal year end: | 11/30 |
Date of reporting period: | 5/31/2021 |
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) | |
2 | | DWS Strategic Municipal Income Trust |
Performance Summary | May 31, 2021 (Unaudited) |
Average Annual Total Returns as of 5/31/21 | ||||
DWS Strategic Municipal Income Trust | 6-Months ‡ | 1-Year | 5-Year | 10-Year |
Based on Net Asset Value(a) | 5.49% | 15.80% | 5.04% | 7.06 |
Based on Market Price(a) | 11.64% | 24.66% | 3.34% | 6.24 |
Bloomberg Barclays Municipal Bond Index(b) | 1.40% | 4.74% | 3.52% | 4.29 |
Morningstar Closed-End High-Yield Municipal Funds Category(c) | 6.41% | 16.13% | 4.90% | 7.20 |
‡ | Total returns shown for periods less than one year are not annualized. |
(a) | Total return based on net asset value reflects changes in the Fund’s net asset value during each period. Total return based on market price reflects changes in market price. Each figure assumes that dividend and capital gain distributions, if any, were reinvested. These figures will differ depending upon the level of any discount from or premium to net asset value at which the Fund’s shares traded during the period. Expenses of the Fund include management fee, interest expense and other fund expenses. Total returns shown take into account these fees and expenses. The expense ratio of the Fund for the six months ended May 31, 2021 was 1.91% (1.15% excluding interest expense). |
(b) | The unmanaged, unleveraged Bloomberg Barclays Municipal Bond Index covers the U.S. dollar-denominated long-term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds and pre-refunded bonds. Index returns do not reflect any fees or expenses and it is not possible to invest directly into an index. |
(c) | Morningstar’s Closed-End High-Yield Municipal Funds category represents high-yield muni portfolios that typically invest at least 50% of assets in high-income municipal securities that are not rated or that are rated by a major agency such as Standard & Poor’s or Moody’s at the level of BBB and below (considered part of the high-yield universe within the municipal industry). Morningstar figures represent the average of the total returns based on net asset value reported by all of the closed-end funds designated by Morningstar, Inc. as falling into the Closed-End High-Yield Municipal Funds category. Category returns assume reinvestment of all distributions. It is not possible to invest directly in a Morningstar category. |
DWS Strategic Municipal Income Trust | | 3 |
Net Asset Value and Market Price | ||
As of 5/31/21 | As of 11/30/20 | |
Net Asset Value | $ 12.95 | $ 12.59 |
Market Price | $ 12.29 | $ 11.29 |
Premium (discount) | (5.10%) | (10.33%) |
Distribution Information | |
Six Months as of 5/31/21: Income Dividends (common shareholders) | $ .27 |
Capital Gain Dividend (common shareholders) | $ .0314 |
May Income Dividend (common shareholders) | $ .045 |
Current Annualized Distribution Rate (based on Net Asset Value) as of 5/31/21† | 4.17% |
Current Annualized Distribution Rate (based on Market Price) as of 5/31/21† | 4.39% |
Tax Equivalent Distribution Rate (based on Net Asset Value) as of 5/31/21† | 7.04% |
Tax Equivalent Distribution Rate (based on Market Price) as of 5/31/21† | 7.42% |
† | Current annualized distribution rate is the latest monthly dividend shown as an annualized percentage of net asset value/market price on May 31, 2021. Distribution rate simply measures the level of dividends and is not a complete measure of performance. Tax equivalent distribution rate is based on the Fund’s distribution rate and a marginal income tax rate of 40.8%. Distribution rates are historical, not guaranteed and will fluctuate. Distributions do not include return of capital or other non-income sources. |
4 | | DWS Strategic Municipal Income Trust |
DWS Strategic Municipal Income Trust | | 5 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Open-End Investment Companies) | 5/31/21 | 11/30/20 |
Revenue Bonds | 75% | 74% |
Escrow to Maturity/Prerefunded Bonds | 10% | 10% |
Lease Obligations | 8% | 8% |
General Obligation Bonds | 7% | 8% |
100% | 100% |
Quality (As a % of Investment Portfolio excluding Open-End Investment Companies) | 5/31/21 | 11/30/20 |
AAA | 2% | 2% |
AA | 20% | 19% |
A | 37% | 39% |
BBB | 21% | 20% |
BB | 5% | 6% |
B | 0% | 0% |
Not Rated | 15% | 14% |
100% | 100% |
Top Five State/Territory Allocations (As a % of Investment Portfolio excluding Open-End Investment Companies) | 5/31/21 | 11/30/20 |
New York | 10% | 10% |
Texas | 10% | 11% |
Illinois | 10% | 10% |
Florida | 10% | 10% |
Washington | 6% | 6% |
Interest Rate Sensitivity | 5/31/21 | 11/30/20 |
Effective Maturity | 5.6 years | 6.1 years |
Modified Duration | 5.2 years | 5.4 years |
Leverage (As a % of Total Assets) | 5/31/21 | 11/30/20 |
37% | 38% |
6 | | DWS Strategic Municipal Income Trust |
Investment Portfolio | as of May 31, 2021 (Unaudited) |
Principal Amount ($) | Value ($) | ||
Municipal Bonds and Notes 140.1% | |||
Alabama 0.3% | |||
Alabama, UAB Medicine Finance Authority Revenue, Series B2, 5.0%, 9/1/2041 | 325,000 | 393,687 | |
Alaska 1.6% | |||
Alaska, Industrial Development & Export Authority Revenue, Tanana Chiefs Conference Project, Series A, 4.0%, 10/1/2049 | 2,000,000 | 2,254,141 | |
Arizona 3.2% | |||
Arizona, State Industrial Development Authority, Education Facility Revenue, Odyssey Preparatory Academy Project, 144A, 5.0%, 7/1/2049 | 175,000 | 194,626 | |
Arizona, State University, Green Bond, Series A, 5.0%, 7/1/2043 | 2,000,000 | 2,547,987 | |
Maricopa County, AZ, Industrial Development Authority, Education Revenue, Legacy Traditional Schools Project, Series B, 144A, 5.0%, 7/1/2049 | 150,000 | 173,127 | |
Phoenix, AZ, Civic Improvement Corp., Rental Car Facility Revenue, Series A, 4.0%, 7/1/2045 | 500,000 | 543,787 | |
Phoenix, AZ, Industrial Development Authority, Education Facility Revenue, Leman Academy of Excellence, ORO Valley Project: | |||
Series A, 144A, 5.0%, 7/1/2038 | 195,000 | 201,190 | |
Series A, 144A, 5.25%, 7/1/2048 | 250,000 | 257,837 | |
Yavapai County, AZ, Industrial Development Authority, Hospital Facility, Regional Medical Center, 4.0%, 8/1/2043 | 675,000 | 779,281 | |
4,697,835 | |||
California 9.2% | |||
California, County Tobacco Securitization Agency, Tobacco Settle Revenue, Series B-2, Zero Coupon, 6/1/2055 | 4,000,000 | 794,625 | |
California, Golden State Tobacco Securitization Corp., Tobacco Settlement Revenue: | |||
Series A-1, 5.0%, 6/1/2047 | 100,000 | 103,563 | |
Series A-2, 5.0%, 6/1/2047 | 400,000 | 414,251 | |
California, Morongo Band of Mission Indians Revenue, Series B, 144A, 5.0%, 10/1/2042 | 115,000 | 134,144 | |
California, M-S-R Energy Authority, Series B, 7.0%, 11/1/2034, GTY: Citigroup Global Markets | 1,310,000 | 2,072,667 | |
California, State General Obligation: | |||
5.0%, 11/1/2043 | 1,300,000 | 1,442,525 | |
5.25%, 4/1/2035 | 1,230,000 | 1,281,799 |
DWS Strategic Municipal Income Trust | | 7 |
Principal Amount ($) | Value ($) | ||
California, State Municipal Finance Authority Revenue, LAX Integrated Express Solutions LLC, LINXS Apartment Project: | |||
Series A, AMT, 5.0%, 12/31/2043 | 300,000 | 365,163 | |
Series A, AMT, 5.0%, 12/31/2047 | 160,000 | 194,169 | |
Series A, AMT, 5.0%, 6/1/2048 | 60,000 | 72,699 | |
California, State Public Finance Authority Revenue, ENSO Village Project: | |||
Series A, 144A, 5.0%, 11/15/2046 (a) | 55,000 | 61,499 | |
Series A, 144A, 5.0%, 11/15/2051 (a) | 25,000 | 27,857 | |
California, Statewide Communities Development Authority Revenue, Loma Linda University Medical Center: | |||
Series A, 5.25%, 12/1/2044 | 195,000 | 221,431 | |
Series A, 144A, 5.25%, 12/1/2056 | 735,000 | 829,549 | |
Series A, 5.5%, 12/1/2054 | 195,000 | 221,686 | |
Series A, 144A, 5.5%, 12/1/2058 | 105,000 | 124,766 | |
California, Tobacco Securitization Authority of Northern California, Tobacco Settlement Revenue, Series B-2, Zero Coupon, 6/1/2060 | 1,725,000 | 422,078 | |
Riverside County, CA, Transportation Commission Toll Revenue Senior Lien, Series A, 5.75%, 6/1/2048 | 1,000,000 | 1,088,685 | |
San Buenaventura, CA, Community Memorial Health Systems, Prerefunded, 7.5%, 12/1/2041 | 500,000 | 517,925 | |
San Francisco, CA, City & County Airports Commission, International Airport Revenue: | |||
Series A, AMT, 5.0%, 5/1/2044 | 1,000,000 | 1,118,490 | |
Series A, AMT, 5.0%, 5/1/2049 | 1,110,000 | 1,361,972 | |
San Joaquin Hills, CA, Transportation Corridor Agency, Toll Road Revenue, Series A, 5.0%, 1/15/2050 | 445,000 | 500,864 | |
13,372,407 | |||
Colorado 4.3% | |||
Colorado, High Performance Transportation Enterprise Revenue, C-470 Express Lanes, 5.0%, 12/31/2056 | 225,000 | 258,349 | |
Colorado, Park Creek Metropolitan District Revenue, Senior Ltd. Property Tax Supported, Series A, 5.0%, 12/1/2045 | 235,000 | 269,622 | |
Colorado, Public Energy Authority, Natural Gas Purchased Revenue, 6.25%, 11/15/2028, GTY: Merrill Lynch & Co. | 635,000 | 801,765 | |
Colorado, State Health Facilities Authority Revenue, CommonSpirit Health, Series A-2, 5.0%, 8/1/2044 | 1,000,000 | 1,236,436 | |
Colorado, State Health Facilities Authority Revenue, School Health Systems, Series A, 5.5%, 1/1/2035 | 1,000,000 | 1,127,561 | |
Colorado, State Health Facilities Authority, Hospital Revenue, Covenant Retirement Communities Obligated Group: | |||
Series A, 5.0%, 12/1/2043 | 165,000 | 194,137 |
8 | | DWS Strategic Municipal Income Trust |
Principal Amount ($) | Value ($) | ||
Series A, 5.0%, 12/1/2048 | 260,000 | 304,635 | |
Denver City & County, CO, Special Facilities Airport Revenue, United Airlines, Inc. Project, AMT, 5.0%, 10/1/2032 | 200,000 | 213,770 | |
Denver, CO, City & County Airport Revenue: | |||
Series A, AMT, 5.0%, 12/1/2048 | 585,000 | 713,010 | |
Series A, AMT, 5.25%, 11/15/2043 | 600,000 | 660,491 | |
Denver, CO, Health & Hospital Authority, Certificate of Participations, 5.0%, 12/1/2048 | 140,000 | 169,219 | |
Denver, CO, Health & Hospital Authority, Healthcare Revenue, Series A, 4.0%, 12/1/2040 | 300,000 | 347,981 | |
6,296,976 | |||
Connecticut 0.1% | |||
Connecticut, State Health & Educational Facilities Authority Revenue, Covenant Home, Inc., Series B, 5.0%, 12/1/2040 | 85,000 | 100,085 | |
District of Columbia 2.0% | |||
District of Columbia, Latin American Montessori Bilingual Public Charter School, 5.0%, 6/1/2050 | 1,220,000 | 1,433,225 | |
District of Columbia, Metropolitan Airport Authority Systems Revenue: | |||
Series A, AMT, 5.0%, 10/1/2038 | 200,000 | 219,596 | |
Series A, AMT, 5.0%, 10/1/2043 | 850,000 | 934,113 | |
District of Columbia, Metropolitan Airport Authority, Dulles Toll Road Revenue, Dulles Metrorail & Capital Improvement Project, Series B, 4.0%, 10/1/2049 | 320,000 | 366,401 | |
2,953,335 | |||
Florida 10.9% | |||
Broward County, FL, Airport Systems Revenue: | |||
Series A, AMT, 4.0%, 10/1/2044 | 145,000 | 166,794 | |
Series A, AMT, 4.0%, 10/1/2049 | 230,000 | 262,972 | |
Collier County, FL, Industrial Development Authority, Continuing Care Community Revenue, Arlington of Naples Project, Series A, 144A, 8.125%, 5/15/2044* (b) | 290,000 | 197,200 | |
Davie, FL, Educational Facilities Revenue, Nova Southeastern University Project, 5.0%, 4/1/2048 | 335,000 | 394,909 | |
Florida, Capital Trust Agency, Educational Facilities Authority, Charter Educational Foundation Project, Series A, 144A, 5.375%, 6/15/2048 | 230,000 | 257,600 | |
Florida, Capital Trust Agency, Educational Growth Fund LLC, Charter School Portfolio Project, Series A-1, 144A, 5.0%, 7/1/2056 | 240,000 | 282,251 |
DWS Strategic Municipal Income Trust | | 9 |
Principal Amount ($) | Value ($) | ||
Florida, Development Finance Corp., Educational Facilities Revenue, Mater Academy Projects: | |||
Series A, 5.0%, 6/15/2050 | 140,000 | 159,204 | |
Series A, 5.0%, 6/15/2055 | 125,000 | 141,312 | |
Florida, Development Finance Corp., Surface Transportation Facilities Revenue, Brightline Passenger Rail Project, Series B, 144A, AMT, 7.375%, 1/1/2049 | 750,000 | 814,303 | |
Florida, Development Finance Corp., Surface Transportation Facilities Revenue, Virgin Trains USA Passenger Rail Project: | |||
Series A, 144A, AMT, 6.375% (c), 1/1/2049 | 155,000 | 157,810 | |
Series A, 144A, AMT, 6.5% (c), 1/1/2049 | 170,000 | 172,773 | |
Florida, State Atlantic University Finance Corp., Capital Improvements Revenue, Student Housing Project, Series B, 4.0%, 7/1/2044 | 1,685,000 | 1,944,594 | |
Florida, State Higher Educational Facilities Financial Authority Revenue, Florida Institution of Technology, 4.0%, 10/1/2049 | 1,000,000 | 1,094,810 | |
Florida, Tolomato Community Development District, Special Assessment: | |||
Series 2015-1, Step-up Coupon, 0.0% to 11/1/2021, 6.61% to 5/1/2040 | 250,000 | 241,844 | |
Series 2015-2, Step-up Coupon, 0.0% to 11/1/2024, 6.61% to 5/1/2040 | 150,000 | 113,501 | |
Series A-4, Step-up Coupon, 0.0% to 5/1/2022, 6.61% to 5/1/2040 | 55,000 | 48,622 | |
Series 3, 6.55%, 5/1/2027* (b) | 130,000 | 1 | |
Series 2015-3, 6.61%, 5/1/2040* (b) | 165,000 | 2 | |
Florida, Village Community Development District No. 12, Special Assessment Revenue: | |||
144A, 4.25%, 5/1/2043 | 385,000 | 429,600 | |
144A, 4.375%, 5/1/2050 | 290,000 | 323,543 | |
Florida, Village Community Development District No. 9, Special Assessment Revenue, 5.5%, 5/1/2042 | 140,000 | 144,064 | |
Greater Orlando, FL, Aviation Authority Airport Facilities Revenue, Series A, AMT, 5.0%, 10/1/2047 | 400,000 | 484,709 | |
Hillsborough County, FL, Aviation Authority, Tampa International Airport, Series A, AMT, 5.0%, 10/1/2048 | 500,000 | 617,659 | |
Martin County, FL, Health Facilities Authority, Martin Memorial Medical Center, Prerefunded, 5.5%, 11/15/2042 | 335,000 | 343,171 | |
Miami Beach, FL, Health Facilities Authority, Mount Sinai Medical Center, 5.0%, 11/15/2044 | 500,000 | 553,440 | |
Miami-Dade County, FL, Aviation Revenue, Series B, AMT, 5.0%, 10/1/2040 | 470,000 | 571,747 |
10 | | DWS Strategic Municipal Income Trust |
Principal Amount ($) | Value ($) | ||
Miami-Dade County, FL, Health Facilities Authority Hospital Revenue, Nicklaus Children’s Hospital, 5.0%, 8/1/2047 | 665,000 | 801,068 | |
Seminole County, FL, Industrial Development Authority, Legacy Pointe At UCF Project, Series A, 5.5%, 11/15/2049 | 365,000 | 377,700 | |
Tallahassee, FL, Health Facilities Revenue, Memorial Healthcare, Inc. Project, Series A, 5.0%, 12/1/2055 | 1,150,000 | 1,288,679 | |
Tampa, FL, The University of Tampa Project, Series A, 4.0%, 4/1/2050 | 160,000 | 182,560 | |
Tampa-Hillsborough County, FL, Expressway Authority: | |||
Series A, Prerefunded, 5.0%, 7/1/2031 | 1,500,000 | 1,578,684 | |
Series A, Prerefunded, 5.0%, 7/1/2037 | 1,590,000 | 1,673,405 | |
15,820,531 | |||
Georgia 3.7% | |||
Americus-Sumter County, GA, Hospital Authority, Magnolia Manor Obligated Group, Series A, Prerefunded, 6.25%, 5/15/2033 | 1,000,000 | 1,117,016 | |
Atlanta, GA, Airport Revenue, Series C, AMT, 5.0%, 1/1/2037 | 375,000 | 384,918 | |
Atlanta, GA, Development Authority Revenue Bonds, Series A-1, 5.0%, 7/1/2027 | 70,000 | 81,044 | |
Cobb County, GA, Kennestone Hospital Authority, Revenue Anticipation Certificates, Wellstar Health System, Series A, 5.0%, 4/1/2047 | 175,000 | 209,000 | |
DeKalb County, GA, Water & Sewer Revenue, Series A, 5.25%, 10/1/2036 | 1,000,000 | 1,016,191 | |
Fulton County, GA, Development Authority Hospital Revenue, Revenue Anticipation Certificates, Wellstar Health System, Series A, 5.0%, 4/1/2042 | 210,000 | 250,677 | |
Gainesville & Hall County, GA, Hospital Authority, Northeast Georgia Health System, Inc. Project, Series A, 5.5%, 8/15/2054 | 180,000 | 206,585 | |
George L Smith II, GA, Congress Center Authority, Convention Center Hotel Second Tier, Series B, 144A, 5.0%, 1/1/2054 | 620,000 | 734,951 | |
Georgia, Main Street Natural Gas, Inc., Gas Project Revenue, Series A, 5.5%, 9/15/2024, GTY: Merrill Lynch & Co. | 1,220,000 | 1,413,393 | |
5,413,775 | |||
Hawaii 1.1% | |||
Hawaii, State Airports Systems Revenue, Series A, AMT, 5.0%, 7/1/2041 | 695,000 | 797,803 | |
Hawaii, State Department of Budget & Finance, Special Purpose Revenue, 3.2%, 7/1/2039 | 745,000 | 812,566 | |
1,610,369 |
DWS Strategic Municipal Income Trust | | 11 |
Principal Amount ($) | Value ($) | ||
Illinois 15.1% | |||
Chicago, IL, Board of Education: | |||
Series A, 5.0%, 12/1/2032 | 105,000 | 130,044 | |
Series A, 5.0%, 12/1/2033 | 100,000 | 123,454 | |
Series H, 5.0%, 12/1/2036 | 245,000 | 293,499 | |
Series H, 5.0%, 12/1/2046 | 140,000 | 164,917 | |
Chicago, IL, General Obligation: | |||
Series A, 5.0%, 1/1/2036 | 500,000 | 539,790 | |
Series A, 5.0%, 1/1/2044 | 200,000 | 238,040 | |
Series D, 5.5%, 1/1/2037 | 750,000 | 843,340 | |
Series A, 5.5%, 1/1/2049 | 115,000 | 140,000 | |
Series A, 6.0%, 1/1/2038 | 555,000 | 675,592 | |
Chicago, IL, O’Hare International Airport Revenue: | |||
Series A, AMT, 5.0%, 1/1/2037 | 1,500,000 | 1,858,355 | |
Series C, AMT, 5.0%, 1/1/2046 | 1,000,000 | 1,132,533 | |
Chicago, IL, O’Hare International Airport Revenue, Senior Lien: | |||
Series D, AMT, 5.0%, 1/1/2047 | 415,000 | 495,097 | |
Series D, AMT, 5.0%, 1/1/2052 | 560,000 | 668,123 | |
Chicago, IL, O’Hare International Airport, Special Facility Revenue, AMT, 5.0%, 7/1/2048 | 130,000 | 154,662 | |
Chicago, IL, Transit Authority, Sales Tax Receipts Revenue: | |||
Series A, 4.0%, 12/1/2050 | 95,000 | 108,503 | |
Series A, 4.0%, 12/1/2055 | 90,000 | 102,411 | |
Illinois, Metropolitan Pier & Exposition Authority Revenue, McCormick Place Expansion Project: | |||
Series B, 5.0%, 6/15/2052 | 520,000 | 536,838 | |
Series A, 5.0%, 6/15/2057 | 390,000 | 461,603 | |
Illinois, Metropolitan Pier & Exposition Authority, Dedicated State Tax Revenue, Capital Appreciation-McCormick, Series A, Zero Coupon, 6/15/2036, INS: NATL | 3,000,000 | 2,075,802 | |
Illinois, Railsplitter Tobacco Settlement Authority, Prerefunded, 6.0%, 6/1/2028 | 365,000 | 365,000 | |
Illinois, State Finance Authority Revenue, Friendship Village of Schaumburg, 5.0%, 2/15/2037 | 1,000,000 | 737,851 | |
Illinois, State Finance Authority Revenue, OSF Healthcare Systems, Series A, 5.0%, 11/15/2045 | 525,000 | 605,131 | |
Illinois, State Finance Authority Revenue, Trinity Health Corp., Series L, Prerefunded, 5.0%, 12/1/2030 | 1,000,000 | 1,024,555 | |
Illinois, State Finance Authority, Health Services Facilities Lease Revenue, University of Health Services Facility Project, 4.0%, 10/1/2050 | 1,400,000 | 1,593,989 | |
Illinois, State General Obligation: | |||
Series D, 5.0%, 11/1/2027 | 500,000 | 615,908 |
12 | | DWS Strategic Municipal Income Trust |
Principal Amount ($) | Value ($) | ||
5.0%, 2/1/2029 | 495,000 | 590,551 | |
Series A, 5.0%, 10/1/2033 | 620,000 | 755,325 | |
Series B, 5.0%, 10/1/2033 | 395,000 | 481,215 | |
5.0%, 2/1/2039 | 2,000,000 | 2,174,416 | |
5.0%, 5/1/2039 | 315,000 | 343,861 | |
Series A, 5.0%, 12/1/2042 | 435,000 | 510,724 | |
Series A, 5.0%, 3/1/2046 | 135,000 | 167,861 | |
5.75%, 5/1/2045 | 590,000 | 762,001 | |
Springfield, IL, Electric Revenue, Senior Lien, 5.0%, 3/1/2040, INS: AGMC | 385,000 | 443,215 | |
21,914,206 | |||
Indiana 2.4% | |||
Indiana, State Finance Authority Revenue, Community Foundation of Northwest Indiana, Prerefunded, 5.0%, 3/1/2041 | 1,000,000 | 1,036,821 | |
Indiana, State Finance Authority Revenue, Greencroft Obligation Group, Series A, 7.0%, 11/15/2043 | 460,000 | 500,002 | |
Indiana, State Finance Authority, Health Facilities Revenue, Baptist Healthcare System, Series A, 5.0%, 8/15/2051 | 1,560,000 | 1,867,078 | |
3,403,901 | |||
Iowa 0.9% | |||
Iowa, Finance Authority, Educational Facility Revenue, Holy Family Catholic School Project, 0.02% (d), 6/1/2021, LOC: U.S. Bank NA | 55,000 | 55,000 | |
Iowa, State Higher Education Loan Authority Revenue, Private College Facility, Des Moines University Project: | |||
4.0%, 10/1/2045 | 230,000 | 261,301 | |
4.0%, 10/1/2050 | 770,000 | 871,863 | |
Iowa, Tobacco Settlement Authority Revenue, “1” , Series A-2, 4.0%, 6/1/2049 | 130,000 | 150,897 | |
1,339,061 | |||
Kansas 0.2% | |||
Wyandotte County, KS, Unified Government, Legends Apartments Garage & West Lawn Project, 4.5%, 6/1/2040 | 275,000 | 288,223 | |
Kentucky 1.7% | |||
Columbia, KY, Educational Development Revenue, Lindsey Wilson College Project, 5.0%, 12/1/2033 | 440,000 | 501,562 | |
Kentucky, Public Transportation Infrastructure Authority Toll Revenue, 1st Tier-Downtown Crossing, Series A, 6.0%, 7/1/2053 | 1,440,000 | 1,596,085 |
DWS Strategic Municipal Income Trust | | 13 |
Principal Amount ($) | Value ($) | ||
Kentucky, State Economic Development Finance Authority, Owensboro Health, Inc., Obligated Group: | |||
Series A, 5.0%, 6/1/2045 | 130,000 | 148,690 | |
Series A, 5.25%, 6/1/2041 | 190,000 | 222,791 | |
2,469,128 | |||
Louisiana 2.1% | |||
Calcasieu Parish, LA, Memorial Hospital Service, District Hospital Revenue, 5.0%, 12/1/2039 | 500,000 | 545,138 | |
Louisiana, New Orleans Aviation Board, General Airport North Terminal, Series B, AMT, 5.0%, 1/1/2048 | 140,000 | 167,000 | |
Louisiana, Public Facilities Authority Revenue, Ochsner Clinic Foundation Project, 5.0%, 5/15/2046 | 1,000,000 | 1,197,049 | |
Louisiana, State Local Government Environmental Facilities & Community Development Authority Revenue, Westlake Chemical Corp. Project, 3.5%, 11/1/2032 | 1,010,000 | 1,123,918 | |
3,033,105 | |||
Maine 0.7% | |||
Maine, Health & Higher Educational Facilities Authority Revenue, Maine General Medical Center, Prerefunded, 6.75%, 7/1/2036 | 1,000,000 | 1,005,363 | |
Maryland 1.3% | |||
Maryland, State Economic Development Corp., Port Covington Project, 4.0%, 9/1/2050 | 100,000 | 114,581 | |
Maryland, State Economic Development Corp., Student Housing Revenue, Morgan State University Project: | |||
5.0%, 7/1/2050 | 60,000 | 73,870 | |
5.0%, 7/1/2056 | 110,000 | 134,819 | |
Maryland, State Health & Higher Educational Facilities Authority Revenue, Adventist Healthcare, Obligated Group, Series A, 5.5%, 1/1/2046 | 375,000 | 443,120 | |
Maryland, State Health & Higher Educational Facilities Authority Revenue, Meritus Medical Center Obligated Group, 5.0%, 7/1/2040 | 1,000,000 | 1,138,698 | |
1,905,088 | |||
Massachusetts 4.2% | |||
Massachusetts, State Development Finance Agency Revenue, Partners Healthcare System, Inc., Series Q, 5.0%, 7/1/2035 | 5,000,000 | 6,029,971 | |
Massachusetts, State Health & Educational Facilities Authority Revenue, Baystate Medical Center, Series K-1, 0.01% (d), 6/1/2021, LOC: TD Bank NA | 100,000 | 100,000 | |
6,129,971 |
14 | | DWS Strategic Municipal Income Trust |
Principal Amount ($) | Value ($) | ||
Michigan 2.7% | |||
Detroit, MI, Water & Sewerage Department, Sewerage Disposal System Revenue, Series A, Prerefunded, 5.25%, 7/1/2039 | 280,000 | 295,601 | |
Detroit, MI, Water Supply Systems Revenue, Series A, Prerefunded, 5.75%, 7/1/2037 | 1,000,000 | 1,004,582 | |
Michigan, State Building Authority Revenue, Facilities Program, Series I-A, Prerefunded, 5.5%, 10/15/2045 | 2,000,000 | 2,040,183 | |
Michigan, State Finance Authority Revenue, Detroit Water & Sewer Department: | |||
Series C-3, 5.0%, 7/1/2033, INS: AGMC | 180,000 | 204,360 | |
Series C, 5.0%, 7/1/2035 | 90,000 | 105,111 | |
Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services, Series A, ETM, 5.75%, 2/15/2023 | 320,000 | 321,260 | |
3,971,097 | |||
Minnesota 1.2% | |||
Duluth, MN, Economic Development Authority, Health Care Facilities Revenue, Essentia Health Obligated Group: | |||
Series A, 5.0%, 2/15/2048 | 200,000 | 239,718 | |
Series A, 5.0%, 2/15/2053 | 565,000 | 674,605 | |
Minneapolis, MN, Health Care Systems Revenue, Fairview Health Services, Series A, 5.0%, 11/15/2049 | 205,000 | 247,293 | |
Minnesota, State Housing Finance Agency, Series E, 3.5%, 7/1/2050 | 250,000 | 276,481 | |
Minnesota, State Office of Higher Education Revenue, AMT, 2.65%, 11/1/2038 | 265,000 | 270,782 | |
1,708,879 | |||
Mississippi 0.6% | |||
Lowndes County, MS, Solid Waste Disposal & Pollution Control Revenue, Weyerhaeuser Co. Project, Series A, 6.8%, 4/1/2022 | 250,000 | 262,683 | |
West Rankin, MS, Utility Authority Revenue, 5.0%, 1/1/2048, INS: AGMC | 500,000 | 611,171 | |
873,854 | |||
Missouri 1.5% | |||
Kansas City, MO, Industrial Development Authority, Airport Special Obligation, International Airport Terminal Modernization Project, Series B, AMT, 5.0%, 3/1/2046 | 1,000,000 | 1,225,415 | |
Kansas City, MO, Land Clearance Redevelopment Authority Project Revenue, Convention Center Hotel Project: | |||
Series B, 144A, 5.0%, 2/1/2040 | 200,000 | 217,066 | |
Series B, 144A, 5.0%, 2/1/2050 | 220,000 | 237,283 |
DWS Strategic Municipal Income Trust | | 15 |
Principal Amount ($) | Value ($) | ||
Missouri, State Health & Educational Facilities Authority Revenue, Medical Research, Lutheran Senior Services, Series A, 5.0%, 2/1/2046 | 65,000 | 73,146 | |
Missouri, State Health & Educational Facilities Authority, Health Facilities Revenue, Lester E Cox Medical Centers, Series A, 5.0%, 11/15/2048 | 150,000 | 163,911 | |
St. Louis, MO, Industrial Development Authority Financing Revenue, Ballpark Village Development Project, Series A, 4.75%, 11/15/2047 | 225,000 | 230,695 | |
2,147,516 | |||
Nebraska 0.5% | |||
Douglas County, NE, Hospital Authority No.2, Health Facilities, Children’s Hospital Obligated Group, 5.0%, 11/15/2047 | 535,000 | 641,111 | |
Nebraska, Central Plains Energy Project, Gas Project Revenue, Series A, 5.0%, 9/1/2029, GTY: Goldman Sachs Group, Inc. | 70,000 | 89,204 | |
730,315 | |||
Nevada 1.2% | |||
Las Vegas Valley, NV, Water District, Series B, 5.0%, 6/1/2037 | 1,565,000 | 1,636,676 | |
Reno, NV, Sales Tax Revenue, Transportation Rail Access, Series C, 144A, Zero Coupon, 7/1/2058 | 500,000 | 83,798 | |
1,720,474 | |||
New Hampshire 0.1% | |||
New Hampshire, State Health & Educational Facilities Authority Revenue, Hillside Village: | |||
Series A, 144A, 6.125%, 7/1/2037* (b) | 100,000 | 75,000 | |
Series A, 144A, 6.25%, 7/1/2042* (b) | 125,000 | 93,750 | |
168,750 | |||
New Jersey 7.6% | |||
Atlantic County, NJ, Improvement Authority Lease Revenue, Atlantic City Compus Phase II Project, Series A, 4.0%, 7/1/2053, INS: AGMC | 125,000 | 147,010 | |
Atlantic County, NJ, Improvement Authority Lease Revenue, General Obligation Bonds, Atlantic City Compus Phase II Project, Series A, 4.0%, 7/1/2047, INS: AGMC | 95,000 | 112,460 | |
Essex County, NJ, Improvement Authority Network LLC, Student Housing Project, Series A, 4.0%, 8/1/2060, INS: BAM | 315,000 | 369,642 | |
New Jersey, Economic Development Authority, Self Designated Social Bonds: | |||
Series QQQ, 4.0%, 6/15/2046 | 40,000 | 45,885 | |
Series QQQ, 4.0%, 6/15/2050 | 40,000 | 45,689 |
16 | | DWS Strategic Municipal Income Trust |
Principal Amount ($) | Value ($) | ||
New Jersey, State Covid-19 General Obligation Emergency Bonds: | |||
Series A, 4.0%, 6/1/2030 | 85,000 | 105,075 | |
Series A, 4.0%, 6/1/2031 | 85,000 | 106,619 | |
Series A, 4.0%, 6/1/2032 | 40,000 | 50,940 | |
New Jersey, State Economic Development Authority Revenue, Series BBB, 5.5%, 6/15/2030 | 895,000 | 1,098,428 | |
New Jersey, State Economic Development Authority Revenue, Black Horse EHT Urban Renewal LLC Project, Series A, 144A, 5.0%, 10/1/2039 | 605,000 | 614,850 | |
New Jersey, State Economic Development Authority Revenue, White Horse HMT Urban Renewal LLC Project, 144A, 5.0%, 1/1/2040 | 270,000 | 273,487 | |
New Jersey, State Economic Development Authority, Special Facilities Revenue, Continental Airlines, Inc. Project, Series B, AMT, 5.625%, 11/15/2030 | 500,000 | 561,261 | |
New Jersey, State Economic Development Authority, State Government Buildings Project: | |||
Series A, 5.0%, 6/15/2042 | 115,000 | 138,396 | |
Series A, 5.0%, 6/15/2047 | 130,000 | 155,379 | |
New Jersey, State Health Care Facilities Financing Authority Revenue, University Hospital, Series A, 5.0%, 7/1/2046, INS: AGMC | 180,000 | 206,675 | |
New Jersey, State Higher Education Assistance Authority, Student Loan Revenue: | |||
Series B, AMT, 2.5%, 12/1/2040 | 205,000 | 208,172 | |
Series B, AMT, 3.5%, 12/1/2039 | 200,000 | 220,287 | |
New Jersey, State Transportation Trust Fund Authority: | |||
Series AA, 4.0%, 6/15/2045 | 175,000 | 200,973 | |
Series AA, 4.0%, 6/15/2050 | 190,000 | 216,289 | |
Series B, 5.5%, 6/15/2031 | 1,500,000 | 1,502,890 | |
New Jersey, State Transportation Trust Fund Authority, Transportation Program, Series AA, 5.0%, 6/15/2046 | 1,400,000 | 1,708,405 | |
New Jersey, State Turnpike Authority Revenue, Series A, 4.0%, 1/1/2051 | 2,000,000 | 2,360,309 | |
New Jersey, Tobacco Settlement Financing Corp.: | |||
Series A, 5.0%, 6/1/2046 | 350,000 | 418,244 | |
Series A, 5.25%, 6/1/2046 | 175,000 | 213,242 | |
11,080,607 | |||
New Mexico 0.3% | |||
New Mexico, State Mortgage Finance Authority, “I” , Series D, 3.25%, 7/1/2044 | 470,000 | 498,825 |
DWS Strategic Municipal Income Trust | | 17 |
Principal Amount ($) | Value ($) | ||
New York 8.0% | |||
Monroe County, NY, Industrial Development Corp. Revenue, St. Ann’s Community Project, 5.0%, 1/1/2050 | 750,000 | 820,100 | |
New York, Brooklyn Arena Local Development Corp., Pilot Revenue, Barclays Center Project, Series A, 4.0%, 7/15/2035, INS: AGMC | 45,000 | 49,483 | |
New York, Buffalo & Fort Erie Public Bridge Authority, 5.0%, 1/1/2047 | 1,000,000 | 1,186,505 | |
New York, Metropolitan Transportation Authority Revenue: | |||
Series D, 5.0%, 11/15/2033 | 500,000 | 618,246 | |
Series D, 5.0%, 11/15/2038 | 275,000 | 300,065 | |
Series E-1, 5.0%, 11/15/2042 | 70,000 | 74,226 | |
Series E-1, Prerefunded, 5.0%, 11/15/2042 | 235,000 | 251,784 | |
Series C-1, 5.0%, 11/15/2050 | 1,845,000 | 2,267,589 | |
Series C-1, 5.25%, 11/15/2055 | 210,000 | 261,947 | |
New York, Metropolitan Transportation Authority Revenue, Green Bond, Series D-3, 4.0%, 11/15/2049 | 500,000 | 573,197 | |
New York, Metropolitan Transportation Authority, Dedicated Tax Fund, Series A-1, 0.02% (d), 6/1/2021, LOC: TD Bank NA | 600,000 | 600,000 | |
New York, State Liberty Development Corp. Revenue, World Trade Center, “1-3” , 144A, 5.0%, 11/15/2044 | 415,000 | 459,260 | |
New York, State Transportation Development Corp., Special Facilities Revenue, American Airlines, Inc., John F. Kennedy International Airport Project, AMT, 5.0%, 8/1/2031, GTY: American Airlines Group | 445,000 | 448,148 | |
New York, State Transportation Development Corp., Special Facilities Revenue, Delta Air Lines, Inc., LaGuardia Airport C&D Redevelopment, AMT, 5.0%, 1/1/2033 | 100,000 | 121,624 | |
New York, State Transportation Development Corp., Special Facilities Revenue, Laguardia Gateway Partners LLC, Redevelopment Project, Series A, AMT, 5.0%, 7/1/2041 | 1,200,000 | 1,359,779 | |
New York, Triborough Bridge & Tunnel Authority Revenue, Series F, 0.01% (d), 6/1/2021, LOC: Citibank NA | 100,000 | 100,000 | |
New York, TSASC, Inc.: | |||
Series A, 5.0%, 6/1/2041 | 60,000 | 70,162 | |
Series B, 5.0%, 6/1/2048 | 1,040,000 | 1,136,670 | |
New York, NY, General Obligation, Series G-6, 0.01% (d), 6/1/2021, LOC: Mizuho Bank Ltd. | 150,000 | 150,000 | |
Port Authority of New York & New Jersey, Series 207, AMT, 5.0%, 9/15/2048 | 625,000 | 751,948 | |
11,600,733 |
18 | | DWS Strategic Municipal Income Trust |
Principal Amount ($) | Value ($) | ||
North Carolina 0.4% | |||
New Hanover County, NC, Hospital Revenue, New Hanover Regional Medical Centre: | |||
Prerefunded, 5.0%, 10/1/2042 | 260,000 | 326,179 | |
Prerefunded, 5.0%, 10/1/2047 | 240,000 | 301,088 | |
627,267 | |||
Ohio 6.0% | |||
Buckeye, OH, Tobacco Settlement Financing Authority, “2” , Series B-2, 5.0%, 6/1/2055 | 2,450,000 | 2,840,133 | |
Centerville, OH, Health Care Revenue, Graceworks Lutheran Services, 5.25%, 11/1/2047 | 220,000 | 232,862 | |
Chillicothe, OH, Hospital Facilities Revenue, Adena Health System Obligated Group Project, 5.0%, 12/1/2047 | 445,000 | 532,110 | |
Cleveland-Cuyahoga County, OH, Port Authority Cultural Facility Revenue, Playhouse Square Foundation Project, 5.5%, 12/1/2053 | 270,000 | 314,821 | |
Cleveland-Cuyahoga County, OH, Port Authority, Cultural Facility Revenue, PlayHouse Square Foundation Project, 5.5%, 12/1/2043 | 1,290,000 | 1,504,145 | |
Ohio, Akron, Bath & Copley Joint Township Hospital District Revenue, 5.25%, 11/15/2046 | 615,000 | 725,726 | |
Ohio, American Municipal Power, Inc. Revenue, Fremont Energy Center Project, Series B, 5.0%, 2/15/2037 | 1,575,000 | 1,629,392 | |
Ohio, State Air Quality Development Authority, Exempt Facilities Revenue, Pratt Paper LLC Project: | |||
AMT, 144A, 4.25%, 1/15/2038, GTY: Pratt Industries, Inc. | 70,000 | 79,024 | |
AMT, 144A, 4.5%, 1/15/2048, GTY: Pratt Industries, Inc. | 225,000 | 255,672 | |
Ohio, State Hospital Revenue, Aultman Health Foundation, 144A, 5.0%, 12/1/2048 | 500,000 | 530,463 | |
8,644,348 | |||
Oklahoma 0.9% | |||
Oklahoma, State Development Finance Authority, Health System Revenue, OU Medicine Project: | |||
Series B, 5.5%, 8/15/2052 | 180,000 | 222,222 | |
Series B, 5.5%, 8/15/2057 | 880,000 | 1,083,903 | |
1,306,125 | |||
Oregon 0.6% | |||
Clackamas County, OR, Hospital Facilities Authority Revenue, Mary’s Woods at Marylhurst, Inc. Project, Series A, 5.0%, 5/15/2038 | 25,000 | 27,275 | |
Oregon, Portland Airport Revenue, Series 25B, AMT, 5.0%, 7/1/2049 | 665,000 | 817,626 | |
844,901 |
DWS Strategic Municipal Income Trust | | 19 |
Principal Amount ($) | Value ($) | ||
Pennsylvania 6.8% | |||
Franklin County, PA, Industrial Development Authority Revenue, Menno Haven, Inc. Project: | |||
5.0%, 12/1/2043 | 60,000 | 64,783 | |
5.0%, 12/1/2054 | 175,000 | 187,434 | |
Lancaster County, PA, Hospital Authority, Brethren Village Project: | |||
5.125%, 7/1/2037 | 100,000 | 110,966 | |
5.25%, 7/1/2041 | 100,000 | 110,719 | |
Pennsylvania, Certificate of Participations, Series A, 5.0%, 7/1/2043 | 155,000 | 187,064 | |
Pennsylvania, Commonwealth Financing Authority, Series A, 5.0%, 6/1/2035 | 315,000 | 366,945 | |
Pennsylvania, Commonwealth Financing Authority, Tobacco Master Settlement Payment Revenue Bonds: | |||
5.0%, 6/1/2034 | 250,000 | 306,924 | |
5.0%, 6/1/2035 | 125,000 | 153,255 | |
Pennsylvania, Geisinger Authority Health System Revenue, Series A-1, 5.0%, 2/15/2045 | 740,000 | 882,300 | |
Pennsylvania, Higher Education Assistance Agency Education Loan Revenue, Series A, AMT, 2.625%, 6/1/2042 (a) | 200,000 | 200,527 | |
Pennsylvania, State Economic Development Financing Authority Revenue, Bridges Finco LP: | |||
5.0%, 12/31/2034 | 1,000,000 | 1,173,372 | |
AMT, 5.0%, 12/31/2038 | 1,000,000 | 1,167,617 | |
Pennsylvania, State Turnpike Commission Revenue: | |||
Series A, 4.0%, 12/1/2043 | 750,000 | 891,008 | |
Series A, 4.0%, 12/1/2044 | 90,000 | 106,482 | |
Series A, 4.0%, 12/1/2045 | 30,000 | 35,428 | |
Series A, 4.0%, 12/1/2046 | 60,000 | 70,777 | |
Series A-1, 5.0%, 12/1/2040 | 2,500,000 | 2,913,490 | |
Series C, 5.0%, 12/1/2044 | 240,000 | 274,383 | |
Philadelphia, PA, School District, Series B, 5.0%, 9/1/2043 | 500,000 | 616,398 | |
9,819,872 | |||
South Carolina 3.1% | |||
South Carolina, State Ports Authority Revenue, Series B, AMT, 4.0%, 7/1/2059 | 2,000,000 | 2,267,380 | |
South Carolina, State Public Service Authority Revenue, Series E, 5.25%, 12/1/2055 | 1,070,000 | 1,263,751 | |
South Carolina, State Public Service Authority Revenue, Santee Cooper, Series A, Prerefunded, 5.75%, 12/1/2043 | 890,000 | 1,012,982 | |
4,544,113 |
20 | | DWS Strategic Municipal Income Trust |
Principal Amount ($) | Value ($) | ||
South Dakota 0.3% | |||
Lincon County, SD, Economic Development Revenue, Augustana Collage Assocition Project: | |||
Series A, 4.0%, 8/1/2051 | 125,000 | 139,619 | |
Series A, 4.0%, 8/1/2056 | 125,000 | 138,233 | |
Series A, 4.0%, 8/1/2061 | 165,000 | 180,479 | |
458,331 | |||
Tennessee 1.0% | |||
Greeneville, TN, Health & Educational Facilities Board Hospital Revenue, Ballad Health Obligation Group: | |||
Series A, 5.0%, 7/1/2037 | 300,000 | 368,804 | |
Series A, 5.0%, 7/1/2044 | 400,000 | 485,280 | |
Nashville & Davidson County, TN, Metropolitan Government Health & Education Facilities Board Revenue, Blakeford At Green Hills Corp., Series A, 4.0%, 11/1/2055 | 500,000 | 534,017 | |
1,388,101 | |||
Texas 15.4% | |||
Central Texas, Regional Mobility Authority Revenue, Senior Lien: | |||
Series A, 5.0%, 1/1/2040 | 230,000 | 264,092 | |
Series A, Prerefunded, 5.0%, 1/1/2043 | 1,500,000 | 1,616,049 | |
Dallas-Fort Worth, International Airport Revenue, Series D, AMT, Prerefunded, 5.0%, 11/1/2038 | 2,000,000 | 2,040,032 | |
Houston, TX, Airport System Revenue, Series A, AMT, 5.0%, 7/1/2041 | 750,000 | 930,320 | |
Matagorda County, TX, Navigation District No. 1, Pollution Control Revenue, AEP Texas Central Co. Project, Series A, 4.4%, 5/1/2030, INS: AMBAC | 1,250,000 | 1,524,417 | |
Newark, TX, Higher Education Finance Corp., Education Revenue, Austin Achieve Public School, Inc., 5.0%, 6/15/2048 | 60,000 | 61,717 | |
North Texas, Tollway Authority Revenue: | |||
Series B, 5.0%, 1/1/2045 | 665,000 | 757,402 | |
5.0%, 1/1/2048 | 1,355,000 | 1,630,799 | |
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 | 1,000,724 | |
Tarrant County, TX, Cultural Education Facilities Finance Corp. Revenue, Christus Health Obligated Group, Series B, 5.0%, 7/1/2048 | 1,000,000 | 1,219,295 | |
Tarrant County, TX, Cultural Education Facilities Finance Corp. Revenue, Trinity Terrace Project, The Cumberland Rest, Inc., Series A-1, 5.0%, 10/1/2044 | 175,000 | 191,120 |
DWS Strategic Municipal Income Trust | | 21 |
Principal Amount ($) | Value ($) | ||
Tarrant County, TX, Cultural Education Facilities Finance Corp., Buckner Retirement Services Revenue, 5.0%, 11/15/2046 | 1,000,000 | 1,170,762 | |
Tarrant County, TX, Cultural Education Facilities Finance Corp., Hospital Revenue, Scott & White Healthcare, Prerefunded, 5.0%, 8/15/2043 | 2,100,000 | 2,322,418 | |
Temple, TX, Tax Increment, Reinvestment Zone No. 1, Series A, 144A, 5.0%, 8/1/2038 | 300,000 | 330,723 | |
Temple, TX, Tax Increment, Reinvestment Zone No. One: | |||
Series A, 4.0%, 8/1/2039, INS: BAM (a) | 75,000 | 87,509 | |
Series A, 4.0%, 8/1/2041, INS: BAM (a) | 90,000 | 104,766 | |
Texas, Grand Parkway Transportation Corp., System Toll Revenue: | |||
First Tier, Series C, 4.0%, 10/1/2049 | 600,000 | 702,837 | |
Series B, Prerefunded, 5.0%, 4/1/2053 | 500,000 | 556,644 | |
Texas, Love Field Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project, 5.25%, 11/1/2040 | 1,055,000 | 1,076,219 | |
Texas, New Hope Cultural Education Facilities Finance Corp., Educational Revenue, Cumberland Academy Project, Series A, 144A, 5.0%, 8/15/2050 | 700,000 | 758,895 | |
Texas, New Hope Cultural Education Facilities Finance Corp., Retirement Facilities Revenue, Presbyterian Village North Project: | |||
5.0%, 10/1/2039 | 180,000 | 193,430 | |
Series A, 5.25%, 10/1/2055 | 2,000,000 | 2,171,041 | |
Texas, New Hope Cultural Education Facilities Finance Corp., Senior Living Revenue, Bridgemoor Plano Project, Series A, 7.25%, 12/1/2053 | 460,000 | 416,456 | |
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 | 317,903 | |
Texas, State Transportation Commission, Turnpike Systems Revenue, Series C, 5.0%, 8/15/2034 | 825,000 | 926,029 | |
22,371,599 | |||
Utah 1.7% | |||
Salt Lake City, UT, Airport Revenue: | |||
Series A, AMT, 5.0%, 7/1/2043 | 190,000 | 230,225 | |
Series A, AMT, 5.0%, 7/1/2047 | 595,000 | 717,135 | |
Series A, AMT, 5.0%, 7/1/2048 | 115,000 | 139,257 | |
Utah, Infrastructure Agency Telecommunication Revenue: | |||
4.0%, 10/15/2041 | 100,000 | 116,281 | |
Series 2019, 4.0%, 10/15/2042 | 650,000 | 744,751 |
22 | | DWS Strategic Municipal Income Trust |
Principal Amount ($) | Value ($) | ||
Utah, State Charter School Finance Authority, St. George Campus Project, Series A, 144A, 5.0%, 6/15/2052 | 170,000 | 193,738 | |
Utah, State Charter School Financing Authority Revenue, Freedom Academy Foundation Project, 144A, 5.375%, 6/15/2048 | 320,000 | 357,924 | |
2,499,311 | |||
Virginia 1.6% | |||
Roanoke County, VA, Economic Development Authority, RSDL Care Facilities Revenue, Richfield Living: | |||
Series 2020, 5.0%, 9/1/2050 | 220,000 | 214,698 | |
Series A, 5.375%, 9/1/2054 | 500,000 | 505,765 | |
Virginia, Peninsula Town Center, Community Development Authority Revenue, Special Obligation: | |||
144A, 5.0%, 9/1/2037 | 100,000 | 109,883 | |
144A, 5.0%, 9/1/2045 | 400,000 | 438,312 | |
Virginia, Small Business Financing Authority, Private Activity Revenue, Transform 66 P3 Project, AMT, 5.0%, 12/31/2056 | 865,000 | 1,038,003 | |
2,306,661 | |||
Washington 5.9% | |||
Klickitat County, WA, Public Hospital District No. 2 Revenue, Skyline Hospital: | |||
5.0%, 12/1/2037 | 100,000 | 105,213 | |
5.0%, 12/1/2046 | 500,000 | 519,314 | |
Pierce County, WA, Bethel School District No. 403, 4.0%, 12/1/2037 | 1,000,000 | 1,202,050 | |
Washington, Port of Seattle Revenue: | |||
Series A, AMT, 5.0%, 5/1/2043 | 415,000 | 489,259 | |
AMT, 5.0%, 4/1/2044 | 1,000,000 | 1,222,601 | |
Washington, State Convention Center Public Facilities District, 5.0%, 7/1/2043 | 600,000 | 713,847 | |
Washington, State Higher Educational Facilities Authority, Seattle University Project: | |||
4.0%, 5/1/2045 | 610,000 | 700,643 | |
4.0%, 5/1/2050 | 1,180,000 | 1,347,676 | |
Washington, State Housing Finance Commission Municipal Certificates, “A” , Series A-1, 3.5%, 12/20/2035 | 245,000 | 285,188 | |
Washington, State Housing Finance Commission, Non-Profit Housing Revenue, Rockwood Retirement Communities Project: | |||
Series A, 144A, 5.0%, 1/1/2051 | 500,000 | 559,718 | |
Series A, 144A, 7.375%, 1/1/2044 | 1,000,000 | 1,090,130 |
DWS Strategic Municipal Income Trust | ���| 23 |
Principal Amount ($) | Value ($) | ||
Washington, State Housing Finance Commission, The Hearthstone Project: | |||
Series A, 144A, 5.0%, 7/1/2038 | 50,000 | 54,154 | |
Series A, 144A, 5.0%, 7/1/2048 | 115,000 | 122,997 | |
Series A, 144A, 5.0%, 7/1/2053 | 75,000 | 80,035 | |
8,492,825 | |||
West Virginia 0.7% | |||
West Virginia, State Hospital Finance Authority, State University Health System Obligated Group, Series A, 5.0%, 6/1/2047 | 805,000 | 964,554 | |
Wisconsin 3.6% | |||
Wisconsin, Health Educational Facilities Authority, Covenant Communities, Inc. Project: | |||
Series A-1, 5.0%, 7/1/2043 | 500,000 | 544,802 | |
Series B, 5.0%, 7/1/2048 | 90,000 | 93,804 | |
Wisconsin, Public Finance Authority, Education Revenue, Mountain Island Charter School Ltd.: | |||
5.0%, 7/1/2047 | 200,000 | 213,630 | |
5.0%, 7/1/2052 | 90,000 | 95,949 | |
Wisconsin, Public Finance Authority, Hospital Revenue, Series A, 5.0%, 10/1/2044 | 730,000 | 895,729 | |
Wisconsin, Public Finance Authority, Senior Living Community First Mortgage Revenue, Cedars Obligated Group: | |||
144A, 5.5%, 5/1/2039 | 520,000 | 533,380 | |
144A, 5.75%, 5/1/2054 | 515,000 | 526,456 | |
Wisconsin, Public Finance Authority, Senior Living Revenue, Mary’s Woods at Marylhurst Project, Series A, 144A, 5.25%, 5/15/2052 | 1,000,000 | 1,098,281 | |
Wisconsin, Public Financing Authority, Retirement Facilities Revenue, Southminster, Inc.: | |||
144A, 5.0%, 10/1/2043 | 65,000 | 71,870 | |
144A, 5.0%, 10/1/2053 | 535,000 | 588,310 | |
Wisconsin, State Health & Educational Facilities Authority Revenue, Agnesian Healthcare, Inc., Series B, Prerefunded, 5.0%, 7/1/2036 | 500,000 | 550,024 | |
5,212,235 | |||
Guam 0.3% | |||
Guam, Government Waterworks Authority, Water & Wastewater System Revenue, Series A, 5.0%, 1/1/2050 | 70,000 | 85,487 |
24 | | DWS Strategic Municipal Income Trust |
Principal Amount ($) | Value ($) | ||
Guam, International Airport Authority Revenue, Series C, AMT, 6.375%, 10/1/2043 | 215,000 | 232,523 | |
Guam, Port Authority Revenue, Series A, 5.0%, 7/1/2048 | 65,000 | 76,629 | |
394,639 | |||
Puerto Rico 3.1% | |||
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue: | |||
Series A-1, Zero Coupon, 7/1/2046 | 3,226,000 | 1,050,289 | |
Series A-1, Zero Coupon, 7/1/2051 | 2,670,000 | 631,410 | |
Series A-1, 4.75%, 7/1/2053 | 2,500,000 | 2,810,410 | |
4,492,109 | |||
Total Municipal Bonds and Notes (Cost $184,363,240) | 203,269,228 | ||
Underlying Municipal Bonds of Inverse Floaters (e) 16.7% | |||
Florida 4.2% | |||
Orange County, FL, School Board, Certificate of Participations, Series C, 5.0%, 8/1/2034 (f) | 5,000,000 | 5,998,237 | |
Trust: Orange County, FL, School Board, Series 2016-XM0183, 144A, 17.75%, 2/1/2024, Leverage Factor at purchase date: 4 to 1 | |||
New York 8.3% | |||
New York, State Urban Development Corp. Revenue, Personal Income Tax, Series C-3, 5.0%, 3/15/2040 (f) | 5,000,000 | 6,118,914 | |
Trust: New York, State Urban Development Corp. Revenue, Personal Income Tax, Series 2018-XM0581, 144A, 18.305%, 9/15/2025, Leverage Factor at purchase date: 4 to 1 | |||
New York City, NY, Transitional Finance Authority, Building AID Revenue, Series S-1, 5.0%, 7/15/2037 (f) | 5,000,000 | 5,919,832 | |
Trust: New York, Transitional Finance Authority Building AID Revenue, Series 2018-XM0619, 144A, 18.215%, 1/15/2024, Leverage Factor at purchase date: 4 to 1 | |||
12,038,746 | |||
Washington 4.2% | |||
Washington, State General Obligation, Series D, 5.0%, 2/1/2035 (f) | 5,000,000 | 6,116,385 | |
Trust: Washington, State General Obligation, Series 2017-XM0478, 144A, 17.87%, 8/1/2024, Leverage Factor at purchase date: 4 to 1 | |||
Total Underlying Municipal Bonds of Inverse Floaters (Cost $22,266,175) | 24,153,368 |
DWS Strategic Municipal Income Trust | | 25 |
Shares | Value ($) | ||
Open-End Investment Companies 0.1% | |||
BlackRock Liquidity Funds MuniCash Portfolio, Institutional Shares, 0.01% (g) (Cost $183,456) | 183,266 | 183,303 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $206,812,871) | 156.9 | 227,605,899 | |
Floating Rate Notes (e) | (10.3) | (15,000,000) | |
Series 2020-1 VMTPS, net of deferred offering costs | (48.1) | (69,800,678) | |
Other Assets and Liabilities, Net | 1.5 | 2,253,632 | |
Net Assets Applicable to Common Shareholders | 100.0 | 145,058,853 |
* | Non-income producing security. |
(a) | When-issued security. |
(b) | Defaulted security or security for which income has been deemed uncollectible. |
(c) | Variable or floating rate security. These securities are shown at their current rate as of May 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(d) | Variable rate demand notes are securities whose interest rates are reset periodically (usually daily mode or weekly mode) by remarketing agents based on current market levels, and are not directly set as a fixed spread to a reference rate. These securities may be redeemed at par by the holder at any time, and are shown at their current rates as of May 31, 2021. Date shown reflects the earlier of demand date or stated maturity date. |
(e) | Securities represent the underlying municipal obligations of inverse floating rate obligations held by the Fund. The Floating Rate Notes represents leverage to the Fund and is the amount owed to the floating rate note holders. |
(f) | Security forms part of the below inverse floater. The Fund accounts for these inverse floaters as a form of secured borrowing, by reflecting the value of the underlying bond in the investments of the Fund and the amount owed to the floating rate note holder as a liability. |
(g) | Current yield; not a coupon rate. |
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. |
AGMC: Assured Guaranty Municipal Corp. |
AMBAC: Ambac Financial Group, Inc. |
AMT: Subject to alternative minimum tax. |
BAM: Build America Mutual |
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 |
26 | | DWS Strategic Municipal Income Trust |
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. |
Assets | Level 1 | Level 2 | Level 3 | Total |
Municipal Investments (a) | $ — | $227,422,596 | $— | $227,422,596 |
Open-End Investment Companies | 183,303 | — | — | 183,303 |
Total | $183,303 | $227,422,596 | $ — | $227,605,899 |
(a) | See Investment Portfolio for additional detailed categorizations. |
DWS Strategic Municipal Income Trust | | 27 |
Assets | |
Investment in securities, at value (cost $206,812,871) | $ 227,605,899 |
Receivable for investments sold | 15,000 |
Interest receivable | 2,997,327 |
Other assets | 1,557 |
Total assets | 230,619,783 |
Liabilities | |
Payable for investments purchased — when-issued securities | 477,106 |
Payable for floating rate notes issued | 15,000,000 |
Interest expense payable on preferred shares | 90,520 |
Accrued management fee | 107,162 |
Accrued Trustees' fees | 3,116 |
Other accrued expenses and payables | 82,348 |
Series 2020-1 VMTPS, net of deferred offering costs (liquidation value $70,000,000, see page 38 for more details) | 69,800,678 |
Total liabilities | 85,560,930 |
Net assets applicable to common shareholders, at value | $ 145,058,853 |
Net Assets Applicable to Common Shareholders Consist of | |
Distributable earnings (loss) | 18,002,207 |
Paid-in capital | 127,056,646 |
Net assets applicable to common shareholders, at value | $ 145,058,853 |
Net Asset Value | |
Net Asset Value per common share ($145,058,853 ÷ 11,203,941 outstanding shares of beneficial interest, $.01 par value, unlimited number of common shares authorized) | $ 12.95 |
28 | | DWS Strategic Municipal Income Trust |
Investment Income | |
Income: | |
Interest | $ 4,321,752 |
Expenses: | |
Management fee | 637,637 |
Services to shareholders | 4,611 |
Custodian fee | 2,489 |
Professional fees | 51,378 |
Reports to shareholders | 12,425 |
Trustees' fees and expenses | 5,762 |
Interest expense and amortization of deferred cost on Series 2020-1 VMTPS | 569,496 |
Interest expense on floating rate notes | 55,454 |
Stock Exchange listing fees | 11,843 |
Other | 55,887 |
Total expenses | 1,406,982 |
Net investment income | 2,914,770 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | (2,113,346) |
Change in net unrealized appreciation (depreciation) on investments | 6,524,533 |
Net gain (loss) | 4,411,187 |
Net increase (decrease) in net assets resulting from operations | $ 7,325,957 |
DWS Strategic Municipal Income Trust | | 29 |
Increase (Decrease) in Cash: Cash Flows from Operating Activities | |
Net increase (decrease) in net assets resulting from operations | $ 7,325,957 |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | |
Purchases of long-term investments | (25,033,688) |
Net amortization of premium/(accretion of discount) | 516,810 |
Proceeds from sales and maturities of long-term investments | 24,580,915 |
Amortization of deferred offering cost on Series 2020-1 VMTPS | 37,475 |
(Increase) decrease in interest receivable | 16,885 |
(Increase) decrease in other assets | (1,515) |
(Increase) decrease in receivable for investments sold | (10,000) |
(Increase) decrease in receivable for investments sold - when issued securities | 112,444 |
Increase (decrease) in payable for investments purchased - when issued securities | 366,090 |
Increase (decrease) in other accrued expenses and payables | (148,167) |
Change in unrealized (appreciation) depreciation on investments | (6,524,533) |
Net realized (gain) loss from investments | 2,113,346 |
Cash provided by (used in) operating activities | $ 3,352,019 |
Cash Flows from Financing Activities | |
(Increase) decrease in deferred offering cost on Series 2020-1 VMTPS | (39,284) |
Distributions paid (net of reinvestment of distributions) | (3,316,567) |
Cash provided by (used in) financing activities | (3,355,851) |
Increase (decrease) in cash | (3,832) |
Cash at beginning of period | 3,832 |
Cash at end of period | $ — |
Supplemental disclosure | |
Interest expense paid on preferred shares | $ (494,127) |
Interest expense paid and fees on floating rate notes issued | $ (55,454) |
30 | | DWS Strategic Municipal Income Trust |
Six Months Ended May 31, 2021 | Year Ended November 30, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2020 |
Operations: | ||
Net investment income | $ 2,914,770 | $ 5,855,339 |
Net realized gain (loss) | (2,113,346) | (660,015) |
Change in net unrealized appreciation (depreciation) | 6,524,533 | (493,224) |
Net increase (decrease) in net assets applicable to common shareholders | 7,325,957 | 4,702,100 |
Distributions to common shareholders | (3,354,461) | (5,819,333) |
Increase (decrease) in net assets | 3,971,496 | (1,117,233) |
Net assets at beginning of period applicable to common shareholders | 141,087,357 | 142,204,590 |
Net assets at end of period applicable to common shareholders | $145,058,853 | $141,087,357 |
Other Information: | ||
Common shares outstanding at beginning of period | 11,203,941 | 11,203,941 |
Common shares outstanding at end of period | 11,203,941 | 11,203,941 |
DWS Strategic Municipal Income Trust | | 31 |
Six Months Ended 5/31/21 | Years Ended November 30, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data Applicable to Common Shareholders | ||||||
Net asset value, beginning of period | $12.59 | $12.69 | $11.76 | $12.39 | $12.15 | $12.90 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .26 | .52 | .53 | .61 | .70 | .80 |
Net realized and unrealized gain (loss) | .40 | (.10) | 1.00 | (.64) | .24 | (.76) |
Total from investment operations | .66 | .42 | 1.53 | (.03) | .94 | .04 |
Less distributions applicable to common shareholders from: | ||||||
Net investment income | (.27) | (.50) | (.57) | (.60) | (.67) | (.79) |
Net realized gains | (.03) | (.02) | (.03) | (.00)* | (.03) | — |
Total distributions | (.30) | (.52) | (.60) | (.60) | (.70) | (.79) |
Net asset value, end of period | $12.95 | $12.59 | $12.69 | $11.76 | $12.39 | $12.15 |
Market price, end of period | $12.29 | $11.29 | $12.32 | $10.30 | $11.91 | $12.08 |
Total Return | ||||||
Based on net asset value (%)b | 5.49 ** | 3.98 c | 13.68 | .31 | 7.93 | (.07) |
Based on market price (%)b | 11.64 ** | (3.95) c | 26.01 | (8.60) | 4.35 | (1.63) |
32 | | DWS Strategic Municipal Income Trust |
Six Months Ended 5/31/21 | Years Ended November 30, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Ratios to Average Net Assets Applicable to Common Shareholders and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 145 | 141 | 142 | 132 | 139 | 136 |
Ratio of expenses before expense reductions (%) (including interest expense)d,e | 1.91 *** | 2.33 | 2.89 | 2.75 | 2.37 | 1.88 |
Ratio of expenses after expense reductions (%) (including interest expense)d,f | 1.91 *** | 2.23 | 2.89 | 2.75 | 2.37 | 1.88 |
Ratio of expenses after expense reductions (%) (excluding interest expense)g | 1.15 *** | 1.05 | 1.12 | 1.13 | 1.11 | 1.12 |
Ratio of net investment income (%) | 4.15 *** | 4.25 | 4.26 | 5.05 | 5.63 | 6.09 |
Portfolio turnover rate (%) | 11 ** | 35 | 28 | 39 | 27 | 37 |
Senior Securities | ||||||
Preferred Shares information at period end, aggregate amount outstanding: | ||||||
Series 2018 MTPS ($ millions) | — | — | 70 | 70 | 70 | 70 |
Series 2020-1 VMTPS ($ millions) | 70 | 70 | — | — | — | — |
Asset coverage per share ($)h | 307,227 | 301,553 | 75,787 | 72,050 | 74,572 | 73,568 |
Liquidation and market price per share ($) | 100,000 | 100,000 | 25,000 | 25,000 | 25,000 | 25,000 |
DWS Strategic Municipal Income Trust | | 33 |
a | Based on average common shares outstanding during the period. |
b | Total return based on net asset value reflects changes in the Fund’s net asset value during each period. Total return based on market price reflects changes in market price. Each figure assumes that dividend and capital gain distributions, if any, were reinvested. These figures will differ depending upon the level of any discount from or premium to net asset value at which the Fund’s shares traded during the period. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities and interest paid to shareholders of Series 2018 MTPS and Series 2020-1 VMTPS. |
e | The ratio of expenses before expense reductions (based on net assets of common and Preferred Shares, including interest expense) was 1.28%, 1.54%, 1.92%, 1.81% 1.58% and 1.27% for the periods ended May 31, 2021, November 30, 2020, 2019, 2018, 2017 and 2016, respectively. |
f | The ratio of expenses after expense reductions (based on net assets of common and Preferred Shares, including interest expense) was 1.28%, 1.48%, 1.92%, 1.81% 1.58% and 1.27% for the periods ended May 31, 2021, November 30, 2020, 2019, 2018, 2017 and 2016, respectively. |
g | The ratio of expenses after expense reductions (based on net assets of common and Preferred Shares, excluding interest expense) was 0.77%, 0.70%, 0.74%, 0.74% 0.74% and 0.76% for the periods ended May 31, 2021, November 30, 2020, 2019, 2018, 2017 and 2016, respectively. |
h | Asset coverage per share equals net assets of common shares plus the liquidation value of the Preferred Shares divided by the total number of Preferred Shares outstanding at the end of the period. |
* | Amount is less than $.005. |
** | Not annualized |
*** | Annualized |
34 | | DWS Strategic Municipal Income Trust |
Notes to Financial Statements | (Unaudited) |
A. | Organization and Significant Accounting Policies |
DWS Strategic Municipal Income Trust | | 35 |
36 | | DWS Strategic Municipal Income Trust |
DWS Strategic Municipal Income Trust | | 37 |
38 | | DWS Strategic Municipal Income Trust |
DWS Strategic Municipal Income Trust | | 39 |
B. | Purchases and Sales of Securities |
40 | | DWS Strategic Municipal Income Trust |
C. | Related Parties |
DWS Strategic Municipal Income Trust | | 41 |
D. | Concentration of Ownership |
E. | Share Repurchases |
F. | Other — COVID-19 Pandemic |
42 | | DWS Strategic Municipal Income Trust |
DWS Strategic Municipal Income Trust | | 43 |
44 | | DWS Strategic Municipal Income Trust |
DWS Strategic Municipal Income Trust | | 45 |
Automated Information Line | DWS Closed-End Fund Info Line (800) 349-4281 |
Web Site | dws.com Obtain fact sheets, financial reports, press releases and webcasts when available. |
Written Correspondence | DWSAttn: Secretary of the DWS Funds 100 Summer Street Boston, MA 02110 |
Legal Counsel | Vedder Price P.C. 222 North LaSalle Street Chicago, IL 60601 |
Dividend Reinvestment Plan Agent | DST Systems, Inc. 333 W. 11th Street, 5th Floor Kansas City, MO 64105 |
Shareholder Service Agent and Transfer Agent | DWS Service Company P.O. Box 219066 Kansas City, MO 64121-9066 (800) 294-4366 |
Custodian | State Street Bank and Trust Company State Street Financial Center One Lincoln Street Boston, MA 02111 |
Independent Registered Public Accounting Firm | Ernst & Young LLP 200 Clarendon Street Boston, MA 02116 |
Proxy Voting | The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800) 728-3337. |
Portfolio Holdings | Following the Fund’s fiscal first and third quarter-end, a complete portfolio holdings listing is posted on dws.com, and is available free of charge by contacting your financial intermediary, or if you are a direct investor, by calling (800) 728-3337. In addition, the portfolio holdings listing is filed with SEC on the Fund’s Form N-PORT and will be available on the SEC’s Web site at sec.gov. Additional portfolio holdings for the Fund are also posted on dws.com from time to time. |
46 | | DWS Strategic Municipal Income Trust |
Investment Management | DWS Investment Management Americas, Inc. (“DIMA” or the “Advisor” ), which is part of the DWS Group GmbH & Co. KGaA (“DWS Group” ), is the investment advisor for the Fund. DIMA and its predecessors have more than 90 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients. DIMA is an indirect, wholly owned subsidiary of DWS Group. |
DWS Group is a global organization that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts and an office network that reaches the world’s major investment centers. This well-resourced global investment platform brings together a wide variety of experience and investment insight across industries, regions, asset classes and investing styles. |
NYSE Symbol | KSM |
CUSIP Number | Common Shares 23342Q 101 |
DWS Strategic Municipal Income Trust | | 47 |
FACTS | What Does DWS Do With Your Personal Information? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share can include: — Social Security number — Account balances — Purchase and transaction history — Bank account information — Contact information such as mailing address, e-mail address and telephone number |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons DWS chooses to share and whether you can limit this sharing. |
Reasons we can share your personal information | Does DWS share? | Can you limit this sharing? |
For our everyday business purposes —such as to process your transactions, maintain your account(s), respond to court orders or legal investigations | Yes | No |
For our marketing purposes — to offer our products and services to you | Yes | No |
For joint marketing with other financial companies | No | We do not share |
For our affiliates’ everyday business purposes — information about your transactions and experiences | No | We do not share |
For our affiliates’ everyday business purposes — information about your creditworthiness | No | We do not share |
For non-affiliates to market to you | No | We do not share |
Questions? | Call (800) 728-3337 or e-mail us at service@dws.com |
48 | | DWS Strategic Municipal Income Trust |
Who we are | |
Who is providing this notice? | DWS Distributors, Inc; DWS Investment Management Americas, Inc.; DWS Trust Company; the DWS Funds |
What we do | |
How does DWS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards, secured files, and secured buildings. |
How does DWS collect my personal information? | We collect your personal information, for example, when you: — open an account — give us your contact information — provide bank account information for ACH or wire transactions — tell us where to send money — seek advice about your investments |
Why can’t I limit all sharing? | Federal law gives you the right to limit only — sharing for affiliates’ everyday business purposes — information about your creditworthiness — affiliates from using your information to market to you — sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial or non-financial companies. Our affiliates include financial companies with the DWS or Deutsche Bank (“DB” ) name, such as DB AG Frankfurt. |
Non-affiliates | Companies not related by common ownership or control. They can be financial and non-financial companies. Non-affiliates we share with include account service providers, service quality monitoring services, mailing service providers and verification services to help in the fight against money laundering and fraud. |
Joint marketing | A formal agreement between non-affiliated financial companies that together market financial products or services to you. DWS does not jointly market. |
DWS Strategic Municipal Income Trust | | 49 |
(b) Not applicable | |
ITEM 2. | CODE OF ETHICS |
Not applicable. | |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
Not applicable | |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Not applicable | |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
Not applicable | |
ITEM 6. | SCHEDULE OF INVESTMENTS |
Not applicable | |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Not applicable | |
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Portfolio Manager Team Disclosure:
As of the date of this report the Fund is managed by a Team of investment professionals who collaborate to develop and implement the Fund’s investment strategy. Each Portfolio Manager on the Team has authority over all aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio construction techniques, portfolio risk assessment, and the management of daily cash flows in accordance with portfolio holdings.
The following individuals handle the day-to-day management of the Fund.
Ashton P. Goodfield*, CFA, Head of Investment Strategy Fixed Income and Portfolio Manager of the Fund.
- Joined DWS in 1986 and the Fund in 2014.
- Head of Municipal Bonds.
- BA, Duke University.
Chad Farrington, CFA, Senior Portfolio Manager Fixed Income and Portfolio Manager of the Fund.
- Joined DWS and the Fund in 2018 with 20 years of industry experience; previously, worked as Portfolio Manager, Head of Municipal Research & Senior Credit Analyst at Columbia Threadneedle.
- Effective October 1, 2021, Co-Head of Municipal Bond Department.
- BS, Montana State University.
Michael J. Generazo, Senior Portfolio Manager Fixed Income and Portfolio Manager of the Fund.
- Joined DWS in 1999 and the Fund in 2010.
- BS, Bryant College; MBA, Suffolk University
Peter Aloisi**, CFA, Portfolio Manager Fixed Income and Portfolio Manager of the Fund.
- Joined DWS in 2010 with 5 years industry experience; previously, served as an Associate at Banc of America Securities. Joined the Fund in 2021.
- BA and MBA, Boston College.
*Ashton P. Goodfield will leave the portfolio management team effective October 1, 2021.
** Peter Aloisi will join the portfolio management team effective October 1, 2021.
Compensation of Portfolio Managers
The Advisor and its affiliates are part of DWS. The brand DWS represents DWS Group GmbH & KGaA (“DWS Group”) and any of its subsidiaries such as DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services. DWS seeks to offer its investment professionals competitive short-term and long-term compensation based on continuous, above average, fund performance relative to the market. This includes measurement of short and long-term performance against industry and portfolio benchmarks. As employees of DWS, portfolio managers are paid on a total compensation basis, which includes Fixed Pay (base salary) and Variable Compensation, as set forth below. The compensation information below is provided as of the Fund’s most recent semiannual report dated May 31, 2021.
· | Fixed Pay (FP) is the key and primary element of compensation for the majority of DWS employees and reflects the value of the individual’s role and function within the organization. It rewards factors that an employee brings to the organization such as skills and experience, while reflecting regional and divisional (i.e. DWS) specifics. FP levels play a significant role in ensuring competitiveness of the Advisor and its affiliates in the labor market, thus benchmarking provides a valuable input when determining FP levels. |
· | Variable Compensation (VC) is a discretionary compensation element that enables the Advisor and its affiliates to provide additional reward to employees for their performance and behaviors, while reflecting DWS affordability and the financial situation of Deutsche Bank AG (the “Bank”) and DWS. VC aims to: |
o | Recognize that every employee contributes to the DWS Group’s success through the DWS Group and/or Bank component of VC (Group Component), |
o | Reflect individual performance, investment performance, behaviours and culture through discretionary individual VC (Individual Component), and |
o | Reward outstanding contributions at the junior levels through the discretionary Recognition Award. |
Employee seniority as well as divisional and regional specifics determine which VC elements are applicable for a given employee and the conditions under which they apply. Both Group and Individual Components may be awarded in shares or other share-based instruments and other deferral arrangements.
· | VC can be delivered via cash, restricted equity awards, and/or restricted incentive awards or restricted compensation. Restricted compensation may include: |
o | notional fund investments |
o | restricted equity, notional equity, |
o | restricted cash, |
o | or such other form as DWS may decide in its sole discretion |
· | VC comprises a greater proportion of total compensation as an employee’s seniority and total compensation level increase. Proportion of VC delivered via a long-term incentive award, which is subject to performance conditions and forfeiture provisions, will increase significantly as the amount of the VC increases. |
· | Additional forfeiture and claw back provisions, including complete forfeiture and claw back of VC may apply in certain events if an employee is an InstVV [CRD IV EU Directive4] Material Risk Taker. |
· | For key investment professionals, in particular, a portion of any long-term incentives will be in the form of notional investments aligned, where possible, to the funds they manage. |
In general, each of the Advisor and its advisory affiliates seek to offer their investment professionals competitive short-term and long-term compensation based on continuous, above average, fund performance relative to the market. This includes measurement of short and long-term performance against industry and portfolio benchmarks. To evaluate their investment professionals in light of and consistent with the compensation principles set forth above, the Advisor and its affiliates review investment performance for all accounts managed in relation to the appropriate Morningstar peer group universe with respect to a fund, iMoneyNet peer group with respect to a money market fund or relevant benchmark index(es) set forth in the governing documents with respect to each other account type. The ultimate goal of this process is to evaluate the degree to which investment professionals deliver investment performance that meets or exceeds their clients’ risk and return objectives. When determining total compensation, the Advisor and its affiliates consider a number of quantitative, qualitative and other factors:
- | Quantitative measures (e.g. one-, three- and five-year pre-tax returns versus the appropriate Morningstar peer group universe for a fund, or versus the appropriate iMoneyNet peer group for a money market fund or relevant benchmark index(es) set forth in the governing documents with respect to each other account type, taking risk targets into account) are utilized to measure performance. |
- | Qualitative measures (e.g. adherence to, as well as contributions to, the enhancement of the investment process) are included in the performance review. |
- | Other factors (e.g. non-investment related performance, teamwork, adherence to compliance rules, risk management and "living the values" of the Advisor and its affiliates) are included as part of a discretionary component of the review process, giving management the ability to consider additional markers of performance on a subjective basis. |
- | Furthermore, it is important to note that DWS Group functions within a controlled environment based upon the risk limits established by DWS Group’s Risk division, in conjunction with DWS Group management. Because risk consideration is inherent in all business activities, performance assessment factors in an employee’s ability to assess and manage risk. |
Fund Ownership of Portfolio Managers
The following table shows the dollar range of Fund shares owned beneficially and of record by each member of the Fund’s portfolio management team as well as in all US registered DWS Funds advised by DWS Investment Management Americas, Inc.
(Advisor) as a group, including investments by their immediate family members sharing the same household and amounts invested through retirement and deferred compensation plans. This information is provided as of the Fund’s most recent semiannual report dated May 31, 2021.
Name of Portfolio Manager | Dollar Range of Fund Shares Owned | Dollar Range of All DWS Fund Shares Owned |
Ashton P. Goodfield | - | Over $1,000,000 |
Chad Farrington | - | $100,001-$500,000 |
Michael J. Generazo | - | $10,001-$50,000 |
Peter Aloisi | - | $50,001-$100,000 |
Conflicts of Interest
In addition to managing the assets of the Fund, the Fund’s portfolio managers may have responsibility for managing other client accounts of the Advisor or its affiliates. The tables below show, for each portfolio manager, the number and asset size of (1) SEC registered investment companies (or series thereof) other than the Fund, (2) pooled investment vehicles that are not registered investment companies and (3) other accounts (e.g., accounts managed for individuals or organizations) managed by each portfolio manager. Total assets attributed to each portfolio manager in the tables below include total assets of each account managed by them, although the manager may only manage a portion of such account’s assets. For Funds subadvised by subadvisors unaffiliated with the Advisor, total assets of Funds managed may only include assets allocated to the portfolio manager and not the total assets of each Fund managed. The tables also show the number of performance-based fee accounts, as well as the total assets of the accounts for which the advisory fee is based on the performance of the account. This information is provided as of the Fund’s most recent semiannual report dated May 31, 2021.
Other SEC Registered Investment Companies Managed:
Name of Portfolio Manager | Number of Registered Investment Companies | Total Assets of Registered Investment Companies | Number of Investment Company Accounts with Performance Based Fee | Total Assets of Performance- Based Fee Accounts |
Ashton P. Goodfield | 8 | $7,905,567,640 | - | - |
Chad Farrington | 2 | $4,810,412,683 | - | - |
Michael J. Generazo | 5 | $6,345,449,750 | - | - |
Peter Aloisi | 4 | $2,067,200,576 | - | - |
Other Pooled Investment Vehicles Managed:
Name of Portfolio Manager | Number of Pooled Investment Vehicles | Total Assets of Pooled Investment Vehicles | Number of Pooled Investment Vehicle Accounts with Performance-Based Fee | Total Assets of Performance- Based Fee Accounts |
Ashton P. Goodfield | - | - | - | - |
Michael J. Generazo | - | - | - | - |
Michael J. Generazo | - | - | - | - |
Peter Aloisi | - | - | - | - |
Other Accounts Managed:
Name of Portfolio Manager | Number of Other Accounts | Total Assets of Other Accounts | Number of Other Accounts with Performance- Based Fee | Total Assets of Performance- Based Fee Accounts |
Ashton P. Goodfield | - | - | - | - |
Chad Farrington | - | - | - | - |
Michael J. Generazo | 3 | $33,194,527 | - | - |
Peter Aloisi | 6 | $114,235,416 | - | - |
In addition to the accounts above, an investment professional may manage accounts in a personal capacity that may include holdings that are similar to, or the same as, those of the Funds. The Advisor or Subadvisor, as applicable, has in place a Code of Ethics that is designed to address conflicts of interest and that, among other things, imposes restrictions on the ability of portfolio managers and other “access persons” to invest in securities that may be recommended or traded in the Funds and other client accounts.
Real, potential or apparent conflicts of interest may arise when a portfolio manager has day-to-day portfolio management responsibilities with respect to more than one fund or account, including the following:
· | Certain investments may be appropriate for the Fund and also for other clients advised by the Advisor and their affiliates, including other client accounts managed by the Fund’s portfolio management team. Investment decisions for the Fund and other clients are made with a view to achieving their respective investment objectives and after consideration of such factors as their current holdings, availability of cash for investment and the size of their investments generally. A particular security may be bought or sold for only one client or in different amounts and at different times for more than one but less than all clients. Likewise, because clients of the Advisor and their affiliates may have differing investment strategies, a particular security may be bought for one or more clients when one or more other clients are selling the security. The investment results achieved for the Fund may differ from the results achieved for other clients of the Advisor and their affiliates. In addition, purchases or sales of the same security may be made for two or more clients on the same day. In such event, such transactions will be allocated among the clients in a manner believed by the Advisor and their affiliates to be most equitable to each client, generally utilizing a pro rata allocation methodology. In some cases, the allocation procedure could potentially have an adverse effect or positive effect on the price or amount of the securities purchased or sold by the Fund. Purchase and sale orders for the Fund may be combined with those of other clients of the Advisor and their affiliates in the interest of achieving the most favorable net results to the Fund and the other clients. |
· | To the extent that a portfolio manager has responsibilities for managing multiple client accounts, a portfolio manager will need to divide time and attention among relevant accounts. The Advisor and their affilates attempt to minimize these conflicts by aligning its portfolio management teams by investment strategy and by employing similar investment models across multiple client accounts. |
· | In some cases, an apparent conflict may arise where the Advisor has an incentive, such as a performance-based fee, in managing one account and not with respect to other accounts it manages. The Advisor and their affiliates will not determine allocations based on whether it receives a performance-based fee from the client. Additionally, the Advisor has in place supervisory oversight processes to periodically monitor performance deviations for accounts with like strategies. |
· | The Advisor and its affiliates and the investment team of each Fund may manage other mutual funds and separate accounts on a long only or a long-short basis. The simultaneous management of long and short portfolios creates potential conflicts of interest including the risk that short sale activity could adversely affect the market value of the long positions (and vice versa), the risk arising from sequential orders in long and short positions, and the risks associated with receiving opposing orders at the same time. The Advisor has adopted procedures that it believes are reasonably designed to mitigate these and other potential conflicts of interest. Included in these procedures are specific guidelines developed to provide fair and equitable treatment for all clients whose accounts are managed by each Fund’s portfolio management team. The Advisor and the portfolio management team have established monitoring procedures, a protocol for supervisory reviews, as well as compliance oversight to ensure that potential conflicts of interest relating to this type of activity are properly addressed. |
The Advisor is owned by the DWS Group, a multinational global financial services firm that is a majority owned subsidiary of Deutsche Bank AG. Therefore, the Advisor is affiliated with a variety of entities that provide, and/or engage in commercial banking, insurance, brokerage, investment banking, financial advisory, broker-dealer activities (including sales and trading), hedge funds, real estate and private equity investing, in addition to the provision of investment management services to institutional and individual investors. Since Deutsche Bank AG, its affiliates, directors, officers and employees (the “Firm”) are engaged in businesses and have interests in addition to managing asset management accounts, such wide ranging activities involve real, potential or apparent conflicts of interest. These interests and activities include potential advisory, transactional and financial activities and other interests in securities and companies that may be directly or indirectly purchased or sold by the Firm for its clients’ advisory accounts. The Advisor and their affiliates may take investment positions in securities in which other clients or related persons within the Firm have different investment positions. There may be instances in which the Advisor is purchasing or selling for their client accounts, or pursuing an outcome in the context of a workout or restructuring with respect to, securities in which the Firm is undertaking the same or differing strategy in other businesses or other client accounts. These are considerations of which advisory clients should be aware and which will cause conflicts that could be to the disadvantage of the Advisor’s advisory clients, including the Fund. The Advisor and their affiliates have instituted business and compliance policies, procedures and disclosures that are designed to identify, monitor and mitigate conflicts of interest and, as appropriate, to report them to a Fund’s Board.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
(a) | (b) | (c) | (d) | |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs |
December 1 through December 31 | - | n/a | n/a | n/a |
January 1 through January 31 | - | n/a | n/a | n/a |
February 1 through February 29 | - | n/a | n/a | n/a |
March 1 through March 31 | - | n/a | n/a | n/a |
April 1 through April 30 | - | n/a | n/a | n/a |
May 1 through May 31 | - | n/a | n/a | n/a |
Total | - | n/a | n/a | n/a |
The Fund may from time to time repurchase shares in the open market. | ||||
On September 25, 2020, the Fund announced that the Fund's Board of Trustees extended the Fund's existing open market share repurchase program for an additional 12 month period. The Fund may continue to purchase outstanding shares of common stock in open-market transactions over the period December 1, 2020 until November 30, 2021, when the Fund's shares trade at a discount to net asset value. The Board's authorization of the repurchase program extension follows the previous repurchase program, which commenced on December 1, 2019 and ran until November 30, 2020. |
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | ||
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | |||
ITEM 11. | 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. | ||
ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. | ||
Not applicable | |||
ITEM 13. | EXHIBITS | ||
(a)(1) | Not applicable | ||
(a)(2) | 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. | ||
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. | ||
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/Hepsen Uzcan Hepsen Uzcan President |
Date: | 7/30/2021 |
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/Hepsen Uzcan Hepsen Uzcan President |
Date: | 7/30/2021 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 7/30/2021 |