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 Scudder Strategic Municipal Income Trust ---------------------------------------- (Exact name of registrant as specified in charter) 222 South Riverside Plaza Chicago, IL 60606 (Address of principal executive offices) (Zip code) Paul Schubert 345 Park Avenue New York, NY 10154 (Name and address of agent for service) Registrant's telephone number, including area code: (212) 454-7190 -------------- Date of fiscal year end: 11/30 ----- Date of reporting period: 8/31/05 -------- Form N-Q is to be used by registered management investment companies, other than small business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-4). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. SCHEDULE OF INVESTMENTS Investment Portfolio as of August 31, 2005 (Unaudited) ------------------------------------------------------------------------------------------------------------ Scudder Strategic Municipal Income Trust Principal Amount ($) Value ($) --------------------------------- ------------------------------------------------------------------------------------------------------------ Municipal Bonds and Notes 148.1% ------------------------------------------------------------------------------------------------------------ Alabama 2.0% Alabama, Sales & Special Tax Revenue, Public School and College Authority, Series C, 5.625%, 7/1/2013 1,000,000 1,099,490 Huntsville, AL, Hospital & Healthcare Revenue, Health Care Authority, Series A, 5.75%, 6/1/2031 1,500,000 1,605,165 ------------- 2,704,655 Arizona 1.5% Arizona, Project Revenue, Health Facilities Authority, The New Foundation Project, 8.25%, 3/1/2019 1,975,000 1,993,664 California 10.3% California, Special Assessment Revenue, Golden State Tobacco Securitization Corp.: Series B, 5.625%, 6/1/2038 1,890,000 2,162,935 Series 2003-A-1, 6.75%, 6/1/2039 4,500,000 5,192,505 California, State Public Works Board, Lease Revenue, Department of Corrections, Series C, 5.5%, 6/1/2019 1,920,000 2,141,261 Hayward, CA, Multi-Family Housing Revenue, Timbers Apartments, Series A, AMT, 2.47% *, 3/15/2033 1,400,000 1,400,000 Sacramento County, CA, Sales & Special Tax Revenue, Bradshaw Road Project, 7.2%, 9/2/2015 1,130,000 1,146,486 Sacramento, CA, Project Revenue, City Financing Authority, Convention Center Hotel, Series A, 6.25%, 1/1/2030 2,000,000 2,109,460 ------------- 14,152,647 Colorado 3.8% Colorado, Hospital & Healthcare Revenue, Portercare Adventist Health Project, 6.5%, 11/15/2031 1,000,000 1,123,700 Colorado, Transportation/Tolls Revenue, Northwest Parkway Public Highway Authority, Series D, 7.125%, 6/15/2041 1,150,000 1,251,016 Denver, CO, Sales & Special Tax Revenue, Urban Renewal Authority, AMT, 7.75%, 9/1/2016 1,615,000 1,697,252 Mesa County, CO, Valley School District No. 051 Grand Junction, Series A, 5.0%, 12/1/2024 (a) 1,000,000 1,078,630 ------------- 5,150,598 Connecticut 2.7% Greenwich, CT, Multi-Family Housing Revenue, 6.35%, 9/1/2027 2,000,000 2,124,480 Mashantucket, CT, Sports, Expo & Entertainment Revenue, Mashantucket Western Pequot Tribe: Series B, 144A, Zero Coupon, 9/1/2017 2,000,000 1,100,580 Series B, 144A, Zero Coupon, 9/1/2018 1,000,000 520,260 ------------- 3,745,320 District of Columbia 0.8% District of Columbia, Core City General Obligation, Series A, 5.0%, 6/1/2018 (a) 1,000,000 1,054,380 Florida 6.8% Alachua County, FL, Health Facilities Authority Revenue, Shands Teaching Hospital, Series A, 2.3% *, 12/1/2032, SunTrust Bank (b) 200,000 200,000 Florida, Industrial Development Revenue, Capital Travel Agency, Seminole Tribe Convention, Series A, 10.0%, 10/1/2033 2,000,000 2,204,520 Hillsborough County, FL, Industrial Development Revenue, University Community Hospital Project, Series A, 5.625%, 8/15/2023 2,000,000 2,080,440 Miami Beach, FL, Health Facilities Authority Hospital Revenue, Mount Sinai Medical Center, 144A, 6.75%, 11/15/2029 1,600,000 1,812,624 Nassau County, FL, ICF/MR-Intercare Facilities Mentally Retarded Revenue, GF/Amelia Island Properties Project, Series A, 9.75%, 1/1/2023 1,845,000 1,860,664 Orlando, FL, Special Assessment Revenue, Conroy Road Interchange Project, Series A, 5.8%, 5/1/2026 1,000,000 1,016,840 Palm Beach County, FL, Health Facilities Authority Revenue, Bethesda Healthcare System Project, 2.34% *, 12/1/2031, SunTrust Bank (b) 100,000 100,000 ------------- 9,275,088 Georgia 1.6% Americus-Sumter County, GA, Hospital & Healthcare Revenue, Hospital Authority, South Georgia Methodist, Series A, 6.375%, 5/15/2029 1,250,000 1,286,200 Burke County, GA, Development Authority Pollution Control Revenue, Oglethorpe Power Corp., 2.34% *, 1/1/2022 (a) 365,000 365,000 Monroe County, GA, Development Authority Pollution Control Revenue, Oglethorpe Power Corp. Project, 2.34% *, 1/1/2018 (a) 600,000 600,000 ------------- 2,251,200 Hawaii 1.0% Hawaii, State General Obligation: Prerefunded, Series CU, 5.75%, 10/1/2011 (a) 65,000 72,733 Series CU, 5.75%, 10/1/2011 (a) 1,185,000 1,319,225 ------------- 1,391,958 Illinois 10.2% Chicago, IL, Core City General Obligation, Board of Education, Series A, 5.75%, 12/1/2017 (a) 1,380,000 1,567,376 Illinois, Core City General Obligation, 5.0%, 6/1/2019 (a) 3,000,000 3,246,240 Illinois, Hospital & Healthcare Revenue, 6.75%, 2/15/2016 2,180,000 2,491,544 Illinois, State General Obligation, Prerefunded, 6.0%, 1/1/2013 (a) 3,315,000 3,692,612 Illinois, Upper River Valley Development Authority, Solid Waste Disposal Revenue, Waste Recovery Project, AMT, 5.9%, 2/1/2014 1,615,000 1,644,409 University Park, IL, Sales & Special Tax Revenue, Governors Gateway Industrial Park, 8.5%, 12/1/2011 1,240,000 1,271,583 ------------- 13,913,764 Indiana 2.2% Indiana, Senior Care Revenue, Health Facilities Finance Authority, Franciscan Eldercare Community Services, 5.875%, 5/15/2029 3,000,000 3,051,510 Iowa 0.8% Lake City, IA, Senior Care Revenue, Health Care Facility, Opportunity Living Project, 144A, 6.45%, 5/1/2011 1,050,000 1,076,922 Kansas 3.0% Manhattan, KS, Senior Care Revenue, Meadowlark Hills Retirement, Series A, 6.5%, 5/15/2028 500,000 521,275 Overland Park, KS, Industrial Development Revenue, Series A, 7.375%, 1/1/2032 2,000,000 2,195,680 Wyandotte County, KS, Unified Government Special Obligation Revenue, Sales Tax, Series B, 5.0%, 12/1/2020 1,400,000 1,443,526 ------------- 4,160,481 Kentucky 0.8% Kentucky, Hospital & Healthcare Revenue, Economic Development Finance Authority, Norton Healthcare, Inc., Series A, 6.625%, 10/1/2028 1,000,000 1,107,130 Louisiana 2.4% Morehouse Parish, LA, Pollution Control Revenue, International Paper Co. Project, Series A, 5.25%, 11/15/2013 3,000,000 3,221,940 Maryland 7.6% Anne Arundel County, MD, General Obligation, National Business Park Project, Prerefunded, 144A, 7.375%, 7/1/2028 997,000 1,198,025 Anne Arundel County, MD, Revenue Lease, Arundel Mills Project, Prerefunded, 7.1%, 7/1/2029 1,500,000 1,740,255 Maryland, Higher Education Revenue, Collegiate Housing Foundation: Series A, 5.75%, 6/1/2019 1,000,000 1,054,740 Series A, 5.75%, 6/1/2031 1,000,000 1,044,350 Maryland, Hospital & Healthcare Revenue, University of Maryland Medical System, 6.75%, 7/1/2030 1,000,000 1,123,970 Maryland, Project Revenue, Economic Development Corp., Chesapeake Bay, Series B, 7.625%, 12/1/2022 4,000,000 4,267,360 ------------- 10,428,700 Massachusetts 8.0% Massachusetts, Hospital & Healthcare Revenue, Health & Educational Facilities Authority, Civic Investments, Series A, 9.0%, 12/15/2015 2,000,000 2,457,460 Massachusetts, Hospital & Healthcare Revenue, Partners Healthcare System, Series C, 5.75%, 7/1/2032 1,000,000 1,109,970 Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032 1,955,000 2,017,169 Massachusetts, Project Revenue, Health & Educational Facilities Authority, Jordan Hospital, Series E, 6.75%, 10/1/2033 1,790,000 1,989,191 Massachusetts, State General Obligation, Consolidated Loan: Series B, Prerefunded, 5.0%, 4/1/2016 (a) 915,000 966,615 Series B, 5.0%, 4/1/2016 (a) 2,260,000 2,387,487 ------------- 10,927,892 Michigan 3.8% Detroit, MI, Sewer Disposal Revenue, Senior Lien, Series B, 2.3% *, 7/1/2033 (a) 90,000 90,000 Kalamazoo, MI, Industrial Development Revenue, Economic Development Corp., Series A, 7.5%, 5/15/2029 2,000,000 2,091,580 Michigan, University of Michigan Hospitals Revenue, Series A, 2.3% *, 12/1/2019 175,000 175,000 Saginaw, MI, Hospital & Healthcare Revenue, Hospital Finance Authority, Covenant Medical Center, Series F, 6.5%, 7/1/2030 1,000,000 1,099,710 Tawas City, MI, Hospital Finance Authority, St. Joseph Health Services: Series A, ETM, 5.6%, 2/15/2013 345,000 368,108 Series A, ETM, 5.75%, 2/15/2023 1,300,000 1,394,055 ------------- 5,218,453 Missouri 2.8% St. Louis, MO, Industrial Development Authority Revenue, St. Louis Convention Center: AMT, Series A, 6.875%, 12/15/2020 1,000,000 823,660 AMT, Series A, 7.2%, 12/15/2028 2,000,000 1,648,280 St. Louis, MO, Special Assessment Revenue, Scullin Redevelopment Area, Series A, 10.0%, 8/1/2010 1,175,000 1,345,704 ------------- 3,817,644 Nebraska 0.0% Nebraska, Single Family Housing Revenue, Investment Finance Authority, AMT, Series A, 6.7%, 9/1/2026 40,000 40,587 Nevada 1.6% Las Vegas, NV, Transportation/Tolls Revenue, Las Vegas Monorail Project, 7.375%, 1/1/2030 2,000,000 2,111,540 Nevada, Single Family Housing Revenue, AMT, Series C, 6.5%, 4/1/2028 95,000 97,681 ------------- 2,209,221 New Hampshire 3.5% New Hampshire, Higher Education Revenue, Health & Educational Facilities Authority, New Hampshire College Issue, 7.4%, 1/1/2023 1,000,000 1,195,680 New Hampshire, Hospital & Healthcare Revenue, Rivermead at Peterborough Retirement Community, 5.75%, 7/1/2028 1,500,000 1,541,190 New Hampshire, Senior Care Revenue, Higher Education Revenue, Havenwood Heritage Heights, 7.45%, 1/1/2025 2,000,000 2,053,460 ------------- 4,790,330 New Jersey 5.3% New Jersey, Economic Development Authority Revenue, Cigarette Tax, 5.75%, 6/15/2034 290,000 312,020 New Jersey, Economic Development Authority Revenue, Motor Vehicle Surplus Revenue: Series A, 5.0%, 7/1/2022 (a) 1,430,000 1,543,742 Series A, 5.0%, 7/1/2023 (a) 1,770,000 1,906,680 New Jersey, Higher Education Revenue, Education Facilities Authority, Caldwell College, Series A, 7.25%, 7/1/2025 1,785,000 1,822,324 New Jersey, Resource Recovery Revenue, Tobacco Settlement Financing Corp., 5.75%, 6/1/2032 1,665,000 1,741,956 ------------- 7,326,722 New Mexico 2.1% Farmington, NM, Pollution Control Revenue, 5.8%, 4/1/2022 2,750,000 2,816,495 New York 13.4% Long Island, NY, Power Authority, Electric System Revenue, Series 1B, 2.32% *, 5/1/2033, State Street Bank & Trust Co. (b) 140,000 140,000 Nassau County, NY, Hospital & Healthcare Revenue, 6.0%, 8/1/2016 (a) 2,825,000 3,185,611 Nassau County, NY, Project Revenue, North Shore Healthcare Systems Project, Series B, 5.875%, 11/1/2011 760,000 833,667 New York, Core City General Obligation, Series C, 7.0%, 2/1/2010 315,000 320,034 New York, General Obligation, Series A-4, 2.3% *, 8/1/2021, Landesbank Baden-Wurttm (b) 250,000 250,000 New York, Sales & Special Tax Revenue, Metropolitan Transportation Authority, Series A, Prerefunded, 5.125%, 4/1/2019 (a) 1,450,000 1,632,555 New York, Sales & Special Tax Revenue, Transitional Finance Authority, Series B, 6.0%, 11/15/2013 490,000 556,679 New York, State General Obligation Lease, Higher Education Revenue, Dormitory Authority, State University, Prerefunded, 5.125%, 5/15/2021 (a) 1,880,000 1,986,220 New York, Transitional Finance Authority, Series B, Prerefunded, 6.0%, 11/15/2013 1,510,000 1,715,481 New York, Transportation/Tolls Revenue, Triborough Bridge and Tunnel Authority Systems, ETM, Series Y, 6.0%, 1/1/2012 5,000,000 5,633,200 New York City, NY, Industrial Development Agency Revenue, Liberty-7, World Trade Center, Series A, 6.25%, 3/1/2015 2,000,000 2,127,300 ------------- 18,380,747 North Carolina 1.8% North Carolina, Electric Revenue, Municipal Power Agency: Series C, 5.375%, 1/1/2017 1,000,000 1,069,860 Series B, 6.375%, 1/1/2013 1,300,000 1,447,134 ------------- 2,516,994 North Dakota 0.8% Grand Forks, ND, Hospital & Healthcare Revenue, Altru Health Care System, 7.125%, 8/15/2024 1,000,000 1,113,120 Pennsylvania 6.6% Montgomery County, PA, Industrial Development Authority Revenue, Whitemarsh Continuing Care, 6.25%, 2/1/2035 600,000 636,318 Montgomery County, PA, Senior Care Revenue, Higher Education & Health Authority, Philadelphia Geriatric Center, Series A, 7.25%, 12/1/2027 2,000,000 2,145,080 Pennsylvania, Higher Educational Facilities Authority Revenue, Philadelphia College of Textiles and Science, 6.7%, 4/1/2014 2,000,000 2,065,000 Pennsylvania, Hospital & Healthcare Revenue, Economic Development Financing Authority, UPMC Health System, Series A, 6.0%, 1/15/2031 750,000 828,848 Pennsylvania, St. Mary Hospital Authority, Health Systems Revenue, Catholic Health East, Series B, 5.5%, 11/15/2024 1,465,000 1,595,634 Philadelphia, PA, Redevelopment Authority Revenue, First Lien Mortgage, Series A, 6.5%, 1/1/2029 640,600 664,443 Westmoreland County, PA, Senior Care Revenue, Industrial Development Authority, Health Care Facilities-Redstone, Series B, 8.125%, 11/15/2030 1,000,000 1,106,680 ------------- 9,042,003 Rhode Island 1.6% Rhode Island, Special Assessment Revenue, Series A, 6.125%, 6/1/2032 2,000,000 2,124,440 South Carolina 7.0% South Carolina, Hospital & Healthcare Revenue, Jobs Economic Development Authority, Bon Secours Health Systems, Inc., Series A, 5.625%, 11/15/2030 2,000,000 2,141,460 South Carolina, Hospital & Healthcare Revenue, Jobs Economic Development Authority, Palmetto Health Alliance: Series C, 7.0%, 8/1/2030 1,545,000 1,794,765 Series A, Prerefunded, 7.375%, 12/15/2021 1,000,000 1,212,980 South Carolina, Transportation/Tolls Revenue, Series A, 5.375%, 10/1/2024 (a) 4,150,000 4,489,470 ------------- 9,638,675 South Dakota 1.5% South Dakota, Hospital & Healthcare Revenue, Sioux Valley Hospital, Series E, 5.375%, 11/1/2024 2,000,000 2,121,160 Tennessee 1.7% Johnson City, TN, Hospital & Healthcare Revenue, Health & Educational Facilities Board Hospital, Series A, 7.5%, 7/1/2033 2,000,000 2,388,440 Texas 21.2% Abilene, TX, Senior Care Revenue, Health Facilities Development, Sears Methodist Retirement Facilities, Series A, 5.9%, 11/15/2025 2,500,000 2,547,900 Austin, TX, Project Revenue, Bergstrom Landhost Enterprises, Inc. Airport Hotel Project, Series A, 6.75%, 4/1/2027 ** 1,995,000 927,495 Crowley, TX, School District General Obligation, 5.125%, 8/1/2025 4,000,000 4,234,680 Hidalgo County, TX, Hospital & Healthcare Revenue, Mission Hospital, Inc. Project, 6.75%, 8/15/2016 2,000,000 2,165,760 Houston, TX, General Obligation: Prerefunded, Series A, 5.0%, 3/1/2016 1,365,000 1,431,025 5.0%, 3/1/2016 1,635,000 1,704,177 Houston, TX, School District General Obligation, Series A, 5.0%, 2/15/2024 2,000,000 2,127,300 Houston, TX, Transportation/Tolls Revenue, Special Facilities, Continental Airlines, Inc., AMT, Series E, 6.75%, 7/1/2029 2,000,000 1,923,160 Tarrant County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp., 6.7%, 11/15/2030 1,000,000 1,116,380 Texas, Electric Revenue, Lower Colorado River Authority, Series B, 6.0%, 5/15/2013 (a) 5,000,000 5,517,700 Texas, Industrial Development Revenue, Waste Disposal Authority, AMT, Series A, 6.1%, 8/1/2024 1,000,000 1,074,790 Travis County, TX, Hospital & Healthcare Revenue, Ascension Health Credit, Series A, 6.0%, 11/15/2012 (a) 3,860,000 4,259,510 ------------- 29,029,877 Utah 0.0% Utah, Single Family Housing Revenue, Housing Finance Agency, AMT, Series B2, 6.65%, 7/1/2026 35,000 35,298 Virgin Islands 2.5% Virgin Islands, Sales & Special Tax Revenue, Public Finance Authority, Series A, 6.375%, 10/1/2019 3,000,000 3,413,730 Virginia 1.6% Fairfax County, VA, Hospital & Healthcare Revenue, Economic Development Authority, Greenspring Retirement Community, Series A, 7.25%, 10/1/2019 2,000,000 2,186,440 Washington 0.5% Washington, State Health Care Facilities Authority Revenue, Providence Services, Series A, 2.34% *, 12/1/2030 (a) 700,000 700,000 West Virginia 1.7% West Virginia, Hospital & Healthcare Revenue, Hospital Finance Authority, Charleston Medical Center, Series A, 6.75%, 9/1/2022 390,000 436,387 West Virginia, Hospital Finance Authority, Charleston Medical Center, Prerefunded, 6.75%, 9/1/2022 1,610,000 1,880,850 ------------- 2,317,237 Wisconsin 1.6% Wisconsin, Hospital & Healthcare Revenue, Health & Education Facilities Authority, Aurora Health Care, Inc.: Series A, 5.6%, 2/15/2029 1,000,000 1,036,630 6.875%, 4/15/2030 1,000,000 1,151,750 ------------- 2,188,380 % of Net Assets Value ($) --------------------------------- Total Investment Portfolio (Cost $ 184,966,434) 148.1 203,023,842 Other Assets and Liabilities, Net 2.9 4,028,823 Preferred Stock, at Redemption Value (51.0) (70,000,000) ------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shareholders 100.0 137,052,665 For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements. * Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand and are shown at their current rates as of August 31, 2005. ** Non-income producing security. In the case of a bond, generally denotes that the issuer has defaulted on the payment of principal or interest or has filed for bankruptcy. The following table represents bonds that are in default: Maturity Principal Acquisition Security Coupon Date Amount ($) Cost ($) Value ($) -------------------------------------------------------------------------------------------------------- Austin, TX, Project Revenue, Bergstrom, Landhost Enterprises, Inc. Airport Hotel, Inc 6.75 4/1/2027 1,995,000 1,995,000 927,495 -------------------------------------------------------------------------------------------------------- As a % of Total Insurance Coverage Investment Portfolio ------------------------------------------------------------------------- Ambac Financial Group 2.4 ------------------------------------------------------------------------- Financial Guaranty Insurance Company 2.8 ------------------------------------------------------------------------- Financial Security Assurance, Inc. 5.1 ------------------------------------------------------------------------- MBIA Corp. 10.2 ------------------------------------------------------------------------- (b) Security incorporates a letter of credit from a major bank. 144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. AMT: Subject to alternative minimum tax. ETM: Bonds bearing the description ETM (escrow to maturity) are collateralized by US Treasury securities which are held in escrow and used to pay principal and interest on bonds so designated. Prerefunded: Bonds which are prerefunded are collateralized by US Treasury securities which are held in escrow and are used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: Scudder Strategic Municipal Income Trust By: /s/Vincent J. Esposito ------------------------------ Vincent J. Esposito President Date: October 25, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Registrant: Scudder Strategic Municipal Income Trust By: /s/Vincent J. Esposito ------------------------------ Vincent J. Esposito President Date: October 25, 2005 By: /s/Paul Schubert ------------------------------ Paul Schubert Chief Financial Officer and Treasurer Date: October 25, 2005