sr113013shyt.htm

November 30, 2013

Semiannual Report

to Shareholders

DWS Strategic High Yield Tax-Free Fund

Contents

3 Letter to Shareholders

4 Performance Summary

8 Portfolio Management Team

8 Portfolio Summary

10 Investment Portfolio

35 Statement of Assets and Liabilities

37 Statement of Operations

38 Statement of Cash Flows

39 Statement of Changes in Net Assets

40 Financial Highlights

45 Notes to Financial Statements

55 Information About Your Fund's Expenses

57 Advisory Agreement Board Considerations and Fee Evaluation

62 Account Management Resources

64 Privacy Statement

This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the fund. Please read the prospectus carefully before you invest.

Bond investments are subject to interest-rate and credit risks. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investments in lower-quality ("junk bonds") and non-rated securities present greater risk of loss than investments in higher-quality securities. The fund invests in inverse floaters, which are derivatives that involve leverage and could magnify the fund's gains or losses. Although the fund seeks income that is exempt from federal income taxes, a portion of the fund's distributions may be subject to federal, state and local taxes, including the alternative minimum tax. See the prospectus for details.

Deutsche Asset & Wealth Management represents the asset management and wealth management activities conducted by Deutsche Bank AG or any of its subsidiaries, including the Advisor and DWS Investments Distributors, Inc.

NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Letter to Shareholders

Dear Shareholder:

Having recently joined Deutsche Asset & Wealth Management as president of the DWS funds and head of Fund Administration, I'd like to take this opportunity to introduce myself. I come with 20 years of experience in asset management and the mutual fund industry. My job is to work closely with your fund board to ensure optimal oversight of the DWS funds' management and operations. I look forward to serving in this role on your behalf.

As for the economy, experts seem to agree that both the U.S. and global economies are recovering. Interest rates, while destined to rise to a level more in line with historical "normal" at some point, will likely remain relatively low for the foreseeable future. The stock markets continue to demonstrate strength as housing rebounds, American manufacturing strengthens, the U.S. budget deficit improves and unemployment continues to move lower. However, uncertainty persists regarding the pace of the recovery, the eventual tapering of government bond purchases, the potential for further political gridlock around the fiscal impasse and lingering effects of the financial crisis. All this uncertainty may well contribute to volatility in both the bond and stock markets.

It may help to remember that market fluctuations are not unusual. However, significant market swings may also reflect behavior that is driven more by investor emotion than any fundamental factors relating to the securities in question. If volatility is making you nervous, it may be time to review your investments. A trusted financial advisor can help you determine if a strategy change is appropriate and identify risk management strategies that serve your specific goals and situation.

Best regards,

Brian Binder

President, DWS Funds

Performance Summary November 30, 2013 (Unaudited)

Class A	6-Month‡			1-Year			5-Year			10-Year
Average Annual Total Returns as of 11/30/13
Unadjusted for Sales Charge		-6.01	%		-7.03	%		8.92	%		4.26	%
Adjusted for the Maximum Sales Charge (max 2.75% load)		-8.60	%		-9.58	%		8.31	%		3.97	%
Barclays Municipal Bond Index†		-2.45	%		-3.51	%		6.26	%		4.40	%
Average Annual Total Returns as of 9/30/13 (most recent calendar quarter end)
Unadjusted for Sales Charge					-4.94	%		6.27	%		4.40	%
Adjusted for the Maximum Sales Charge (max 2.75% load)					-7.56	%		5.67	%		4.11	%
Barclays Municipal Bond Index†					-2.21	%		5.98	%		4.40	%
Class B	6-Month‡			1-Year			5-Year			10-Year
Average Annual Total Returns as of 11/30/13
Unadjusted for Sales Charge		-6.37	%		-7.73	%		8.10	%		3.46	%
Adjusted for the Maximum Sales Charge (max 4.00% CDSC)		-10.03	%		-10.39	%		7.96	%		3.46	%
Barclays Municipal Bond Index†		-2.45	%		-3.51	%		6.26	%		4.40	%
Average Annual Total Returns as of 9/30/13 (most recent calendar quarter end)
Unadjusted for Sales Charge					-5.66	%		5.45	%		3.60	%
Adjusted for the Maximum Sales Charge (max 4.00% CDSC)					-8.39	%		5.29	%		3.60	%
Barclays Municipal Bond Index†					-2.21	%		5.98	%		4.40	%
Class C	6-Month‡			1-Year			5-Year			10-Year
Average Annual Total Returns as of 11/30/13
Unadjusted for Sales Charge		-6.44	%		-7.72	%		8.11	%		3.47	%
Adjusted for the Maximum Sales Charge (max 1.00% CDSC)		-7.35	%		-7.72	%		8.11	%		3.47	%
Barclays Municipal Bond Index†		-2.45	%		-3.51	%		6.26	%		4.40	%
Average Annual Total Returns as of 9/30/13 (most recent calendar quarter end)
Unadjusted for Sales Charge					-5.65	%		5.48	%		3.62	%
Adjusted for the Maximum Sales Charge (max 1.00% CDSC)					-5.65	%		5.48	%		3.62	%
Barclays Municipal Bond Index†					-2.21	%		5.98	%		4.40	%
Class S	6-Month‡			1-Year			5-Year			10-Year
Average Annual Total Returns as of 11/30/13
No Sales Charges		-5.88	%		-6.78	%		9.20	%		4.48	%
Barclays Municipal Bond Index†		-2.45	%		-3.51	%		6.26	%		4.40	%
Average Annual Total Returns as of 9/30/13 (most recent calendar quarter end)
No Sales Charges					-4.70	%		6.51	%		4.62	%
Barclays Municipal Bond Index†					-2.21	%		5.98	%		4.40	%
Institutional Class	6-Month‡			1-Year			5-Year			10-Year
Average Annual Total Returns as of 11/30/13
No Sales Charges		-5.95	%		-6.78	%		9.22	%		4.53	%
Barclays Municipal Bond Index†		-2.45	%		-3.51	%		6.26	%		4.40	%
Average Annual Total Returns as of 9/30/13 (most recent calendar quarter end)
No Sales Charges					-4.76	%		6.55	%		4.65	%
Barclays Municipal Bond Index†					-2.21	%		5.98	%		4.40	%

Performance in the Average Annual Total Returns table(s) above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws-investments.com for the Fund's most recent month-end performance. Fund performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.

The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated October 1, 2013 are 1.03%, 1.79%, 1.78%, 0.89% and 0.79% for Class A, Class B, Class C, Class S and Institutional Class shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report.

Index returns do not reflect any fees or expenses and it is not possible to invest directly into an index.

Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

A portion of the Fund's distributions may be subject to federal, state and local taxes and the alternative minimum tax.

Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge)

Yearly periods ended November 30

The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 2.75%. This results in a net initial investment of $9,725.

The growth of $10,000 is cumulative.

Performance of other share classes will vary based on the sales charges and the fee structure of those classes.

† The 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.

‡ Total returns shown for periods less than one year are not annualized.

	Class A			Class B			Class C			Class S			Institutional Class
Net Asset Value
11/30/13	$	11.88		$	11.88		$	11.88		$	11.89		$	11.89
5/31/13	$	12.95		$	12.95		$	12.96		$	12.96		$	12.97
Distribution Information as of 11/30/13
Income Dividends, Six Months	$	.29		$	.25		$	.25		$	.31		$	.31
November Income Dividend	$	.0495		$	.0421		$	.0422		$	.0520		$	.0521
SEC 30-day Yield‡‡		4.18	%		3.54	%		3.55	%		4.56	%		4.57	%
Tax Equivalent Yield‡‡		7.39	%		6.25	%		6.27	%		8.06	%		8.07	%
Current Annualized Distribution Rate‡‡		5.00	%		4.25	%		4.26	%		5.25	%		5.26	%

†† The SEC yield is net investment income per share earned over the month ended November 30, 2013 shown as an annualized percentage of the maximum offering price per share on the last day of the period. The SEC yield is computed in accordance with a standardized method prescribed by the Securities and Exchange Commission. The SEC yield would have been 4.05%, 3.38%, 3.41%, 4.28% and 4.43% for Classes A, B, C, S and Institutional shares, respectively, had certain expenses not been reduced. Tax equivalent yield is based on the Fund's yield and a marginal federal income rate of 43.4%. Current annualized distribution rate is the latest monthly dividend shown as an annualized percentage of net asset value on November 30, 2013. Distribution rate simply measures the level of dividends and is not a complete measure of performance. The current annualized distribution rate would have been 4.87%, 4.09%, 4.12%, 4.97% and 5.12% for Classes A, B, C, S and Institutional shares, respectively, had certain expenses not been reduced. Yields and distribution rates are historical, not guaranteed and will fluctuate.

Portfolio Management Team

Philip G. Condon, Managing Director

Lead Portfolio Manager of the fund. Joined the fund in 1987.

— Joined Deutsche Asset & Wealth Management in 1983.

— Head of US Retail Fixed Income.

— BA and MBA, University of Massachusetts at Amherst.

Rebecca L. Flinn, Director

Portfolio Manager of the fund. Joined the fund in 1998.

— Joined Deutsche Asset & Wealth Management in 1986.

— BA, University of Redlands, California.

A. Gene Caponi, CFA, Managing Director

Portfolio Manager of the fund. Joined the fund in 2009.

— Joined Deutsche Asset & Wealth Management in 1998.

— BS, State University of New York, Oswego; MBA, State University of New York at Albany.

Portfolio Summary (Unaudited)

Investment Portfolio as of November 30, 2013 (Unaudited)

	Principal Amount ($)		Value ($)

Municipal Bonds and Notes 92.7%
Alabama 0.1%
Montgomery, AL, Medical Clinic Board, Health Care Facility Revenue, Jackson Hospital & Clinic, 5.25%, 3/1/2036		2,000,000		1,937,340
Arizona 1.2%
Arizona, Salt Verde Financial Corp., Gas Revenue, 5.25%, 12/1/2025		4,000,000		4,316,880
Arizona, State Health Facilities Authority, Hospital Systems Revenue, Phoenix Children's Hospital, Series A, 5.0%, 2/1/2034		2,500,000		2,367,550
Maricopa County, AZ, Pollution Control Corp. Revenue, El Paso Electric Co. Project, Series B, 7.25%, 4/1/2040		3,930,000		4,341,432
Pima County, AZ, Industrial Development Revenue, Tucson Electric Power, 5.75%, 9/1/2029		2,250,000		2,289,352
Tempe, AZ, Industrial Development Authority Revenue, Tempe Life Care Village, Inc.:
Series A, 6.25%, 12/1/2042		1,535,000		1,523,810
Series A, 6.25%, 12/1/2046		1,400,000		1,383,172
Yavapai County, AZ, Industrial Development Authority, Solid Waste Disposal Revenue, Waste Management, Inc. Project, Series A-1, 144A, AMT, 4.9%, 3/1/2028		5,000,000		5,049,350
				21,271,546
California 8.5%
California, Bay Area Toll Authority, Toll Bridge Revenue, San Francisco Bay Area:
Series F-1, 5.125%, 4/1/2039		10,000,000		10,548,300
Series F-1, 5.5%, 4/1/2043		10,000,000		10,599,700
California, M-S-R Energy Authority, Series B, 7.0%, 11/1/2034		8,750,000		10,764,600
California, Morongo Band of Mission Indians, Enterprise Casino Revenue, Series B, 144A, 6.5%, 3/1/2028		5,000,000		5,457,750
California, State General Obligation:
5.0%, 8/1/2034		5,185,000		5,426,206
5.5%, 3/1/2040		5,130,000		5,548,864
California, State General Obligation, Various Purposes:
5.0%, 11/1/2032		10,000,000		10,466,600
5.0%, 11/1/2037		9,145,000		9,413,406
5.0%, 12/1/2037		5,000,000		5,149,750
5.0%, 4/1/2038		2,650,000		2,723,617
5.75%, 4/1/2031		23,360,000		26,042,662
California, State Public Works Board, Lease Revenue, Capital Projects:
Series A-1, 6.0%, 3/1/2035		10,175,000		11,471,804
Series I-1, 6.375%, 11/1/2034		5,000,000		5,742,050
California, Statewide Communities Development Authority Revenue, Kaiser Permanente, Series A, 5.0%, 4/1/2042		2,645,000		2,623,047
California, Statewide Communities Development Authority Revenue, Terraces At San Joaquin Gardens Project:
Series A, 5.625%, 10/1/2032		500,000		486,935
Series A, 6.0%, 10/1/2042		1,000,000		995,820
Series A, 6.0%, 10/1/2047		1,000,000		990,690
Long Beach, CA, Bond Finance Authority, Natural Gas Purchase Revenue, Series A, 5.25%, 11/15/2023		620,000		678,373
San Buenaventura, CA, Community Memorial Health Systems, 7.5%, 12/1/2041		3,250,000		3,554,167
San Diego, CA, Community College District, Election of 2006, 5.0%, 8/1/2036		2,050,000		2,167,527
San Francisco, CA, City & County Public Utilities Commission, Water Revenue, Series A, 5.125%, 11/1/2039		10,400,000		10,873,408
San Francisco, CA, City & County Redevelopment Financing Authority, Tax Allocation, Mission Bay South Redevelopment, Series D, 7.0%, 8/1/2041		1,400,000		1,492,638
Vernon, CA, Electric Systems Revenue, Series A, 5.5%, 8/1/2041		2,240,000		2,261,347
				145,479,261
Colorado 2.2%
Colorado, E-470 Public Highway Authority Revenue:
Series C, 5.375%, 9/1/2026		2,000,000		2,059,140
Series A-1, 5.5%, 9/1/2024, INS: NATL		3,500,000		3,704,225
Colorado, Health Facilities Authority Revenue, Christian Living Communities Project, Series A, 5.75%, 1/1/2037		1,000,000		968,310
Colorado, Health Facilities Authority Revenue, Covenant Retirement Communities, Inc., 5.0%, 12/1/2035		11,750,000		10,318,380
Colorado, Health Facilities Authority Revenue, Valley View Hospital Association, 5.75%, 5/15/2036		2,000,000		2,038,860
Colorado, Public Energy Authority, Natural Gas Purchased Revenue, 6.25%, 11/15/2028, GTY: Merrill Lynch & Co., Inc.		6,365,000		7,198,306
Colorado, Regional Transportation District, Private Activity Revenue, Denver Transit Partners, 6.0%, 1/15/2041		2,000,000		2,033,680
Colorado, State Health Facilities Authority Revenue, Christian Living Community, 6.375%, 1/1/2041		1,615,000		1,621,961
Colorado, State Health Facilities Authority Revenue, Covenant Retirement Communities, Series A, 5.0%, 12/1/2033		4,835,000		4,453,035
Montrose, CO, Memorial Hospital Revenue, 6.375%, 12/1/2023		2,355,000		2,411,755
				36,807,652
Connecticut 2.1%
Connecticut, Harbor Point Infrastructure Improvement District, Special Obligation Revenue, Harbor Point Project, Series A, 7.875%, 4/1/2039		20,000,000		21,699,800
Connecticut, Mashantucket Western Pequot Tribe Bond, 144A, 4.0%, 7/1/2031		14,641,716		10,062,080
Connecticut, Mohegan Tribe Indians Gaming Authority, Priority Distribution, 144A, 5.25%, 1/1/2033		3,000,000		2,683,440
Hamden, CT, Facility Revenue, Whitney Center Project, Series A, 7.625%, 1/1/2030		1,200,000		1,233,864
				35,679,184
Florida 7.2%
Bayside, FL, Sales & Special Tax Revenue, Community Development District, Series A, 6.3%, 5/1/2018		250,000		245,408
Florida, Capital Region Community Development District, Capital Improvement Revenue, Series A, 7.0%, 5/1/2039		6,080,000		5,713,619
Florida, Harbourage at Braden River Community Development District, Capital Improvement Revenue, Series A, 6.125%, 5/1/2034		1,330,000		1,258,180
Florida, Middle Village Community Development District, Special Assessment, Series A, 6.0%, 5/1/2035		8,125,000		6,127,306
Florida, Tolomato Community Development District, Special Assessment, 5.4%, 5/1/2037		16,125,000		15,030,435
Florida, Village Community Development District No. 9, Special Assessment Revenue:
5.5%, 5/1/2042		1,520,000		1,517,538
7.0%, 5/1/2041		1,830,000		2,017,319
Greater Orlando, FL, Aviation Authority Airport Facilities Revenue, Jetblue Airways Corp. Project, AMT, 5.0%, 11/15/2026		1,500,000		1,381,395
Highlands County, FL, Health Facilities Authority Revenue, Adventist Health System:
Series G, 5.125%, 11/15/2020		970,000		1,067,805
Series G, Prerefunded, 5.125%, 11/15/2020		30,000		34,009
Series G, Prerefunded, 5.125%, 11/15/2021		70,000		79,355
Series G, 5.125%, 11/15/2022		2,205,000		2,417,937
Series G, Prerefunded, 5.125%, 11/15/2022		75,000		85,023
Series G, 5.125%, 11/15/2023		2,245,000		2,461,800
Series G, Prerefunded, 5.125%, 11/15/2023		180,000		204,055
Lee County, FL, Airport Revenue, Series A, AMT, 5.375%, 10/1/2032		1,750,000		1,787,502
Martin County, FL, Health Facilities Authority, Martin Memorial Medical Center, 5.5%, 11/15/2042		3,040,000		2,964,699
Miami Beach, FL, Health Facilities Authority, Mount Sinai Medical Center:
5.0%, 11/15/2029		1,000,000		985,390
6.75%, 11/15/2029		7,005,000		7,291,014
Prerefunded, 6.75%, 11/15/2029		1,095,000		1,163,087
Miami-Dade County, FL, Aviation Revenue, Miami International Airport:
Series A, AMT, 5.25%, 10/1/2033, INS: AGC		10,000,000		10,427,800
Series A-1, 5.5%, 10/1/2041		5,000,000		5,201,650
Miami-Dade County, FL, Double Barreled Aviation, 5.0%, 7/1/2041		5,000,000		5,069,800
Miami-Dade County, FL, Water & Sewer Systems Revenue, 5.0%, 10/1/2034		3,650,000		3,754,025
Orange County, FL, Health Facilities Authority Revenue, Orlando Regional Healthcare, Series C, 5.25%, 10/1/2035		5,000,000		5,041,050
Palm Beach County, FL, Health Facilities Authority Revenue, Waterford Project, 5.375%, 11/15/2022		2,600,000		2,652,832
Palm Beach County, FL, Health Facilities Authority, Retirement Community Revenue, Acts Retirement-Life Communities, Inc., 5.5%, 11/15/2033		9,000,000		9,069,570
Port St. Lucie, FL, Special Assessment Revenue, Southwest Annexation District 1, Series B, 5.0%, 7/1/2027, INS: NATL		2,500,000		2,555,025
Seminole Tribe, FL, Special Obligation Revenue:
Series A, 144A, 5.5%, 10/1/2024		8,000,000		8,357,520
Series A, 144A, 5.75%, 10/1/2022		9,500,000		10,059,645
South Miami, FL, Health Facilities Authority Hospital Revenue, Baptist Health South Florida Group:
5.0%, 8/15/2024		1,000,000		1,096,870
5.0%, 8/15/2025		5,000,000		5,431,500
				122,550,163
Georgia 3.9%
Americus-Sumter County, GA, Hospital Authority, Magnolia Manor Obligated Group, Series A, 6.375%, 5/15/2043		4,000,000		3,844,800
Atlanta, GA, Tax Allocation, Beltline Project:
Series B, 7.375%, 1/1/2031		4,915,000		5,668,027
Atlanta, GA, Tax Allocation, Princeton Lakes Project, 144A, 5.5%, 1/1/2031		1,045,000		1,045,146
Atlanta, GA, Water & Wastewater Revenue:
Series B, 5.375%, 11/1/2039, INS: AGMC		10,000,000		10,360,700
Series A, 6.25%, 11/1/2034		10,000,000		11,412,200
De Kalb County, GA, Hospital Authority Revenue, Anticipation Certificates, Dekalb Medical Center, Inc. Project, 6.125%, 9/1/2040		7,500,000		7,482,000
De Kalb County, GA, Water & Sewer Revenue:
Series A, 5.25%, 10/1/2032		820,000		882,632
Series A, 5.25%, 10/1/2033		1,365,000		1,464,522
Series A, 5.25%, 10/1/2036		4,635,000		4,928,303
Georgia, Glynn-Brunswick Memorial Hospital Authority Revenue, Anticipation Certificates-Southeast Health, Series A, 5.625%, 8/1/2034		5,500,000		5,714,280
Georgia, Main Street Natural Gas, Inc., Gas Project Revenue:
Series A, 5.0%, 3/15/2019 (a)		10,000,000		11,090,000
Series A, 5.5%, 9/15/2024		2,440,000		2,693,150
				66,585,760
Guam 0.9%
Government of Guam, General Obligation, Series A, 7.0%, 11/15/2039		10,155,000		10,641,831
Guam, International Airport Authority, Series C, AMT, 6.375%, 10/1/2043		1,610,000		1,667,525
Guam, Power Authority Revenue, Series A, 5.5%, 10/1/2030		3,000,000		3,042,390
				15,351,746
Hawaii 1.8%
Hawaii, State Airports Systems Revenue, Series A, 5.0%, 7/1/2034		15,000,000		15,337,050
Hawaii, State Department of Budget & Finance, Special Purpose Revenue, 15 Craigside Project, Series A, 9.0%, 11/15/2044		2,000,000		2,209,520
Hawaii, State Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Inc.:
Series B, AMT, 4.6%, 5/1/2026, INS: FGIC		11,790,000		11,367,682
6.5%, 7/1/2039, GTY: Hawaiian Electric Co., Inc.		2,500,000		2,712,425
				31,626,677
Illinois 7.2%
Chicago, IL, Board of Education, Series A, 5.5%, 12/1/2039		10,000,000		9,770,200
Chicago, IL, General Obligation:
Series A, 5.0%, 1/1/2033		10,000,000		9,390,600
Series A, 5.25%, 1/1/2029, INS: AGMC		175,000		175,033
Series A, 5.25%, 1/1/2035		4,050,000		3,880,467
Chicago, IL, O'Hare International Airport Revenue, Third Lien:
Series A, 5.75%, 1/1/2039		9,955,000		10,353,399
Series B, 6.0%, 1/1/2041		12,095,000		13,070,946
Chicago, IL, Waterworks Revenue, 5.0%, 11/1/2042		4,410,000		4,304,425
Cook County, IL, Forest Preservation District, Series C, 5.0%, 12/15/2037		1,845,000		1,895,295
Illinois, Finance Authority Revenue, Elmhurst Memorial Healthcare, Series A, 5.625%, 1/1/2037		5,500,000		5,620,340
Illinois, Finance Authority Revenue, Friendship Village of Schaumburg:
Series A, 5.625%, 2/15/2037		5,000,000		4,373,600
7.25%, 2/15/2045		4,000,000		4,024,120
Illinois, Finance Authority Revenue, Park Place of Elmhurst, Series A, 8.125%, 5/15/2040		8,000,000		7,380,000
Illinois, Finance Authority Revenue, Rush University Medical Center, Series B, 5.75%, 11/1/2028, INS: NATL		1,250,000		1,315,150
Illinois, Finance Authority Revenue, Swedish Covenant Hospital, Series A, 6.0%, 8/15/2038		7,830,000		8,080,638
Illinois, Finance Authority Revenue, The Admiral at Lake Project:
Series A, 7.75%, 5/15/2030		1,675,000		1,725,769
Series A, 8.0%, 5/15/2040		1,000,000		1,031,360
Series A, 8.0%, 5/15/2046		3,500,000		3,600,555
Illinois, Finance Authority Revenue, Three Crowns Park Plaza:
Series A, 5.875%, 2/15/2026		1,225,000		1,218,287
Series A, 5.875%, 2/15/2038		500,000		461,225
Illinois, Metropolitan Pier & Exposition Authority Revenue, McCormick Place Project, Series A, 5.0%, 6/15/2042		2,700,000		2,718,603
Illinois, Metropolitan Pier & Exposition Authority, Dedicated State Tax Revenue, McCormick Place, Series B, 5.0%, 6/15/2050, INS: AGMC		8,000,000		7,656,800
Illinois, Municipal Electric Agency, Power Supply Revenue:
Series A, 5.25%, 2/1/2023, INS: NATL		3,500,000		3,789,870
Series A, 5.25%, 2/1/2024, INS: NATL		2,500,000		2,708,000
Illinois, Railsplitter Tobacco Settlement Authority, 6.0%, 6/1/2028		6,405,000		6,985,677
Illinois, State Finance Authority Revenue, OSF Healthcare Systems, Series A, 5.0%, 5/15/2041		5,265,000		5,138,166
Illinois, State Finance Authority Revenue, Trinity Health Corp., Series L, 5.0%, 12/1/2030		1,500,000		1,554,030
Illinois, State General Obligation, 5.5%, 7/1/2038		1,280,000		1,281,818
				123,504,373
Indiana 1.2%
Indiana, Health & Educational Facility Financing Authority, Hospital Revenue, Community Foundation Northwest, 5.5%, 3/1/2037		1,750,000		1,799,910
Indiana, State Finance Authority Revenue, Community Foundation of Northwest Indiana, 5.0%, 3/1/2041		6,830,000		6,483,924
North Manchester, IN, Economic Development Revenue, Peabody Retirement Community Project:
Series B, 1.0%, 12/1/2045		1,341,246		13
Series A, 5.13%, 12/1/2045		1,557,576		1,287,819
Valparaiso, IN, Exempt Facilities Revenue, Pratt Paper LLC Project, AMT, 7.0%, 1/1/2044, GTY: Pratt Industries (U.S.A.)		6,220,000		6,290,784
Vigo County, IN, Hospital Authority Revenue, Union Hospital, Inc.:
144A, 5.5%, 9/1/2027		1,000,000		980,080
8.0%, 9/1/2041		4,000,000		4,453,040
				21,295,570
Iowa 0.8%
Altoona, IA, Urban Renewal Tax Increment Revenue, Annual Appropriation:
6.0%, 6/1/2034		1,000,000		1,029,640
6.0%, 6/1/2039		2,000,000		2,047,880
Iowa, Finance Authority Retirement Community Revenue, Edgewater LLC Project, 6.5%, 11/15/2027		5,000,000		5,032,650
Iowa, State Finance Authority, Midwestern Disaster Area Revenue, Fertilizer Co. Project, 5.25%, 12/1/2025		6,665,000		6,003,632
				14,113,802
Kansas 0.4%
Lenexa, KS, Health Care Facility Revenue, 5.5%, 5/15/2039		6,340,000		5,520,428
Lenexa, KS, Health Care Facility Revenue, Lakeview Village, Inc. Project, 7.25%, 5/15/2039		1,200,000		1,242,168
				6,762,596
Kentucky 1.2%
Kentucky, Economic Development Finance Authority, Hospital Facilities Revenue, Owensboro Medical Health Systems, Series A, 6.5%, 3/1/2045		15,000,000		15,748,350
Kentucky, Economic Development Finance Authority, Louisville Arena Project Revenue, Series A-1, 6.0%, 12/1/2033, INS: AGC		3,635,000		3,637,799
Louisville & Jefferson County, KY, Metropolitan Government Health Systems Revenue, Norton Healthcare, Inc., 5.0%, 10/1/2030		1,000,000		985,940
				20,372,089
Louisiana 2.6%
DeSoto Parish, LA, Environmental Improvement Revenue, International Paper Co. Project:
Series A, AMT, 5.0%, 11/1/2018		1,260,000		1,260,617
Series A, AMT, 5.75%, 9/1/2031		5,000,000		5,279,650
Louisiana, Local Government Environmental Facilities & Community Development, Westlake Chemical Corp., Series A, 6.5%, 8/1/2029		6,055,000		6,665,284
Louisiana, Local Government Environmental Facilities, Community Development Authority Revenue, 6.75%, 11/1/2032		6,000,000		6,379,320
Louisiana, Public Facilities Authority Revenue, Ochsner Clinic Foundation Project, 6.75%, 5/15/2041		2,500,000		2,747,575
Louisiana, Public Facilities Authority, Hospital Revenue, Lafayette General Medical Center, 5.5%, 11/1/2040		5,000,000		5,025,250
Louisiana, St. John Baptist Parish Revenue, Marathon Oil Corp., Series A, 5.125%, 6/1/2037		15,000,000		14,894,550
Louisiana, Tobacco Settlement Financing Corp. Revenue, Series A, 5.25%, 5/15/2035		1,820,000		1,785,511
				44,037,757
Maine 0.6%
Maine, Health & Higher Educational Facilities Authority Revenue, Maine General Medical Center, 6.75%, 7/1/2036		9,000,000		9,405,990
Maryland 2.0%
Anne Arundel County, MD, Special Obligation, National Business Park North Project, 6.1%, 7/1/2040		2,200,000		2,265,912
Maryland, State Economic Development Corp. Revenue, Senior Lien Project, Chesapeake Bay:
Series A, 5.0%, 12/1/2031		7,000,000		3,989,930
Series B, 5.25%, 12/1/2031		3,400,000		1,937,966
Maryland, State Health & Higher Educational Facilities Authority Revenue, Adventist Healthcare, Series A, 6.125%, 1/1/2036		3,250,000		3,425,435
Maryland, State Health & Higher Educational Facilities Authority Revenue, Doctors Community Hospital, Inc., 5.75%, 7/1/2038		6,250,000		5,927,187
Maryland, State Health & Higher Educational Facilities Authority Revenue, Mercy Medical Center:
Series A, 5.0%, 7/1/2037		5,005,000		4,660,656
6.25%, 7/1/2031		2,500,000		2,696,025
Maryland, State Health & Higher Educational Facilities Authority Revenue, Washington County Hospital:
5.75%, 1/1/2033		2,660,000		2,673,779
6.0%, 1/1/2028		6,100,000		6,328,445
				33,905,335
Massachusetts 3.4%
Boston, MA, Industrial Development Financing Authority Revenue, Crosstown Center Project:
AMT, 6.5%, 9/1/2035		8,805,000		6,206,997
AMT, 8.0%, 9/1/2035*		960,000		313,853
Massachusetts, Industrial Development Revenue, Development Finance Agency, Series A, 7.1%, 7/1/2032		3,355,000		3,298,703
Massachusetts, Project Revenue, Health & Educational Facilities Authority, Jordan Hospital, Series E, 6.75%, 10/1/2033		7,450,000		7,453,948
Massachusetts, State Development Finance Agency Revenue, Linden Ponds, Inc. Facility:
Series A-2, 5.5%, 11/15/2046		86,572		60,406
Series A-1, 6.25%, 11/15/2039		1,621,881		1,305,144
Series B, 11/15/2056*		430,598		2,192
Massachusetts, State Development Finance Agency Revenue, Partners Healthcare System, Inc., Series L, 5.0%, 7/1/2036		6,070,000		6,208,214
Massachusetts, State Development Finance Agency Revenue, Tufts Medical Center, Inc., Series I, 7.25%, 1/1/2032		2,250,000		2,591,662
Massachusetts, State Health & Educational Facilities Authority Revenue, Caregroup Healthcare System:
Series E-1, 5.0%, 7/1/2028		1,500,000		1,528,545
Series E-1, 5.125%, 7/1/2038		1,500,000		1,509,675
Massachusetts, State Health & Educational Facilities Authority Revenue, Jordan Hospital, Series B, 6.875%, 10/1/2015		1,705,000		1,709,569
Massachusetts, State Health & Educational Facilities Authority Revenue, Milford Regional Medical Center:
Series E, 5.0%, 7/15/2022		2,250,000		2,303,595
Series E, 5.0%, 7/15/2032		3,250,000		3,089,125
Series E, 5.0%, 7/15/2037		2,750,000		2,546,940
Massachusetts, State Health & Educational Facilities Authority Revenue, South Shore Hospital:
Series F, 5.625%, 7/1/2019		255,000		255,936
Series F, 5.75%, 7/1/2029		1,480,000		1,485,284
Massachusetts, State Health & Educational Facilities Authority Revenue, Suffolk University, Series A, 5.75%, 7/1/2039		7,145,000		7,382,071
Massachusetts, State Port Authority Special Facilities Revenue, Delta Air Lines, Inc. Project:
Series A, AMT, 5.5%, 1/1/2016, INS: AMBAC		5,000,000		5,002,200
Series A, AMT, 5.5%, 1/1/2018, INS: AMBAC		4,000,000		4,000,720
				58,254,779
Michigan 2.4%
Dearborn, MI, Economic Development Corp. Revenue, Limited Obligation, Henry Ford Village:
7.0%, 11/15/2038		4,500,000		4,330,800
7.125%, 11/15/2043		1,500,000		1,456,215
Detroit, MI, Water & Sewerage Department, Sewerage Disposal System Revenue, Series A, 5.25%, 7/1/2039		2,100,000		1,926,981
Detroit, MI, Water Supply Systems Revenue, Series A, 5.75%, 7/1/2037		7,590,000		7,287,007
Kalamazoo, MI, Economic Development Corp. Revenue, Limited Obligation, Heritage Community:
5.375%, 5/15/2027		1,000,000		901,300
5.5%, 5/15/2036		1,000,000		837,300
Kentwood, MI, Economic Development Corp., Limited Obligation, Holland Home, 5.625%, 11/15/2041		3,750,000		3,416,737
Michigan, State Finance Authority Revenue, Trinity Health Corp., 5.0%, 12/1/2031		10,910,000		11,140,856
Michigan, State Hospital Finance Authority Revenue, Henry Ford Health Hospital, 5.75%, 11/15/2039		6,315,000		6,450,394
Wayne County, MI, Airport Authority Revenue, Detroit Metropolitan Airport, Series A, 5.0%, 12/1/2042		3,450,000		3,302,443
				41,050,033
Mississippi 1.1%
Lowndes County, MS, Solid Waste Disposal & Pollution Control Revenue, Weyerhaeuser Co. Project, Series A, 6.8%, 4/1/2022		5,500,000		6,114,350
Warren County, MS, Gulf Opportunity Zone, International Paper Co.:
Series A, 5.375%, 12/1/2035		1,000,000		978,790
Series A, 5.5%, 9/1/2031		4,250,000		4,372,102
Series A, 5.8%, 5/1/2034, GTY: International Paper Co.		4,000,000		4,100,920
Series A, 6.5%, 9/1/2032		2,620,000		2,858,237
				18,424,399
Missouri 1.0%
Cass County, MO, Hospital Revenue, 5.5%, 5/1/2027		2,000,000		2,006,400
Kansas City, MO, Industrial Development Authority, Health Facilities Revenue, First Mortgage, Bishop Spencer, Series A, 6.5%, 1/1/2035		1,000,000		1,000,860
Kirkwood, MO, Industrial Development Authority, Retirement Community Revenue, Aberdeen Heights:
Series A, 8.25%, 5/15/2039		1,000,000		1,106,340
Series A, 8.25%, 5/15/2045		2,850,000		3,148,310
Missouri, State Health & Educational Facilities Authority, Health Facilities Revenue, Lester E Cox Medical Centers, Series A, 5.0%, 11/15/2048		2,885,000		2,821,963
Missouri, State Health & Educational Facilities Authority, Lutheran Senior Services, 6.0%, 2/1/2041		2,250,000		2,329,875
St. Louis, MO, Lambert-St. Louis International Airport Revenue, Series A-1, 6.625%, 7/1/2034		4,085,000		4,554,366
				16,968,114
Nebraska 0.2%
Douglas County, NE, Hospital Authority No. 002 Revenue, Health Facilities, Immanuel Obligation Group, 5.625%, 1/1/2040		1,500,000		1,548,225
Lancaster County, NE, Hospital Authority No.1, Health Facilities Revenue, Immanuel Obligation Group, 5.625%, 1/1/2040		2,500,000		2,580,375
				4,128,600
Nevada 0.4%
Reno, NV, Hospital Revenue, Renown Regional Medical Center Project, Series A, 5.0%, 6/1/2027		5,000,000		5,028,150
Sparks, NV, Local Improvement Districts, Limited Obligation District No. 3, 6.75%, 9/1/2027		2,000,000		2,011,800
				7,039,950
New Hampshire 1.4%
New Hampshire, Health & Education Facilities Authority Revenue, Havenwood-Heritage Heights:
Series A, 5.35%, 1/1/2026		1,035,000		991,406
Series A, 5.4%, 1/1/2030		550,000		508,206
New Hampshire, Health & Education Facilities Authority Revenue, Wentworth-Douglas Hospital, Series A, 7.0%, 1/1/2038		5,325,000		5,865,381
New Hampshire, Senior Care Revenue, Health & Educational Facilities Authority, New Hampshire Catholic Charities, 5.8%, 8/1/2022		2,550,000		2,555,125
New Hampshire, Senior Care Revenue, Health & Educational Facilities Authority, Rivermead at Peterborough, 5.625%, 7/1/2018		1,615,000		1,616,195
New Hampshire, State Business Finance Authority Revenue, Elliot Hospital Obligation Group, Series A, 6.125%, 10/1/2039		5,000,000		5,185,350
New Hampshire, State Business Finance Authority, Solid Waste Disposal Revenue, Waste Management, Inc. Project, AMT, 5.2%, 5/1/2027		4,000,000		4,090,080
New Hampshire, State Health & Education Facilities Authority Revenue, Rivermead Retirement Community:
Series A, 6.625%, 7/1/2031		700,000		716,891
Series A, 6.875%, 7/1/2041		2,825,000		2,901,049
				24,429,683
New Jersey 4.0%
New Jersey, Economic Development Authority Revenue, Motor Vehicle Surplus Revenue, Series A, 5.0%, 7/1/2023, INS: NATL		1,770,000		1,812,622
New Jersey, Health Care Facilities Financing Authority Revenue, St. Joseph's Health Care System, 6.625%, 7/1/2038		5,785,000		5,844,759
New Jersey, Industrial Development Revenue, Economic Development Authority, Harrogate, Inc., Series A, 5.875%, 12/1/2026		1,425,000		1,380,355
New Jersey, State Economic Development Authority Revenue, 5.0%, 6/15/2028		450,000		453,411
New Jersey, State Economic Development Authority Revenue, The Goethals Bridge Replacement Project, AMT, 5.375%, 1/1/2043		2,275,000		2,243,582
New Jersey, State Economic Development Authority, Continental Airlines, Inc. Project, AMT, 4.875%, 9/15/2019		11,790,000		11,461,177
New Jersey, State Health Care Facilities Financing Authority Revenue, Saint Barnabas Health, Series A, 5.625%, 7/1/2032		3,500,000		3,639,930
New Jersey, State Transportation Trust Fund Authority, Transportation Systems:
Series B, 5.5%, 6/15/2031		9,100,000		9,821,357
Series A, 5.5%, 6/15/2041		7,000,000		7,324,940
New Jersey, Tobacco Settlement Financing Corp.:
Series 1A, 4.75%, 6/1/2034		16,240,000		11,734,862
Series 1-A, 5.0%, 6/1/2029		15,965,000		12,741,187
				68,458,182
New Mexico 0.5%
Farmington, NM, Pollution Control Revenue, Public Service Co. of New Mexico, Series C, 5.9%, 6/1/2040		7,500,000		7,703,400
New York 3.4%
Albany, NY, Industrial Development Agency, Civic Facility Revenue, St. Peter's Hospital Project:
Series A, 5.25%, 11/15/2027		3,000,000		3,136,920
Series A, 5.75%, 11/15/2022		1,500,000		1,664,205
Hudson, NY, Yards Infrastructure Corp. Revenue:
Series A, 5.25%, 2/15/2047		5,000,000		5,130,600
Series A, 5.75%, 2/15/2047		7,000,000		7,481,810
New York, State Dormitory Authority Revenues, NYU Hospital Center, Series B, 5.25%, 7/1/2024		770,000		815,723
New York, State Dormitory Authority Revenues, Orange Regional Medical Center, 6.125%, 12/1/2029		2,000,000		2,007,240
New York, State Dormitory Authority, Personal Income Tax Revenue, Series C, 5.0%, 3/15/2041		10,000,000		10,326,200
New York & New Jersey, Port Authority, Special Obligation Revenue, JFK International Air Terminal LLC, 6.0%, 12/1/2042		5,795,000		6,211,718
New York City, NY, Industrial Development Agency, Special Facility Revenue, American Airlines, JFK International Airport:
AMT, 7.625%, 8/1/2025, GTY: AMR Corp.		5,000,000		5,416,650
AMT, 7.75%, 8/1/2031, GTY: AMR Corp.		6,470,000		7,009,210
AMT, 8.0%, 8/1/2028, GTY: AMR Corp.		6,100,000		6,662,908
New York City, NY, Industrial Development Agency, Special Facility Revenue, British Airways PLC Project, AMT, 7.625%, 12/1/2032		1,500,000		1,507,050
Orange County, NY, Senior Care Revenue, Industrial Development Agency, The Glen Arden Project, 5.7%, 1/1/2028		1,250,000		668,000
				58,038,234
North Carolina 0.2%
Charlotte, NC, Airport Revenue, Series A, 5.0%, 7/1/2039		1,450,000		1,486,729
North Carolina, Medical Care Commission, Retirement Facilities Revenue, First Mortgage, Southminster Project, Series A, 5.625%, 10/1/2027		2,500,000		2,456,200
				3,942,929
North Dakota 0.1%
Grand Forks, ND, Health Care System Revenue, Altru Health System, 5.0%, 12/1/2032		2,000,000		1,974,640
Ohio 0.7%
Cleveland, OH, Airport Systems Revenue, Series A, 5.0%, 1/1/2030		1,000,000		998,860
Hamilton County, OH, Health Care Facilities Revenue, Christ Hospital Project, 5.5%, 6/1/2042		3,100,000		3,134,596
Hamilton County, OH, Health Care Revenue, Life Enriching Communities Project:
6.125%, 1/1/2031		2,100,000		2,113,881
6.625%, 1/1/2046		2,500,000		2,647,325
Ohio, State Higher Educational Facility Commission Revenue, Summa Health Systems Project, Series 2010, 5.75%, 11/15/2040		3,000,000		3,108,630

				12,003,292
Oklahoma 0.4%
Tulsa County, OK, Industrial Authority, Senior Living Community Revenue, Montereau, Inc. Project, Series A, 7.25%, 11/1/2045		6,500,000		6,812,845
Pennsylvania 2.7%
Cumberland County, PA, Municipal Authority Revenue, Asbury Obligation Group, 6.125%, 1/1/2045		4,350,000		4,315,330
Lancaster County, PA, Hospital Authority Revenue, Brethren Village Project, Series A, 6.375%, 7/1/2030		1,000,000		1,002,700
Montgomery County, PA, Industrial Development Authority Revenue, Whitemarsh Continuing Care, 6.25%, 2/1/2035		2,400,000		2,336,616
Northampton County, PA, Hospital Authority Revenue, St. Luke's Hospital Project:
Series A, 5.375%, 8/15/2028		3,500,000		3,608,220
Series A, 5.5%, 8/15/2035		6,500,000		6,535,555
Pennsylvania, Economic Development Finance Authority, U.S. Airways Group, Series B, 8.0%, 5/1/2029, GTY: U.S. Airways, Inc.		985,000		1,094,739
Pennsylvania, Economic Development Financing Authority, Sewer Sludge Disposal Revenue, Philadelphia Biosolids Facility, 6.25%, 1/1/2032		1,500,000		1,493,625
Pennsylvania, State Turnpike Commission Revenue, Series A, 6.5%, 12/1/2036		6,385,000		7,202,216
Philadelphia, PA, Airport Revenue, Series A, 5.0%, 6/15/2035		7,085,000		7,151,741
Philadelphia, PA, Gas Works Revenue, 5.25%, 8/1/2040		3,000,000		3,009,810
Philadelphia, PA, Hospitals & Higher Education Facilities Authority Revenue, Temple University Health Systems, Series A, 5.0%, 7/1/2034		10,000,000		7,780,800
				45,531,352
Puerto Rico 4.9%
Commonwealth of Puerto Rico, Aqueduct & Sewer Authority Revenue, Series A, 6.0%, 7/1/2038		25,750,000		19,299,625
Commonwealth of Puerto Rico, General Obligation, Series A, 6.0%, 7/1/2038		7,200,000		5,366,880
Commonwealth of Puerto Rico, Public Improvement, Series B, 6.5%, 7/1/2037		10,000,000		7,942,500
Puerto Rico, Electric Power Authority Revenue:
Series TT, 5.0%, 7/1/2032		5,500,000		3,896,310
Series TT, 5.0%, 7/1/2037		4,000,000		2,741,840
Series XX, 5.25%, 7/1/2040		6,665,000		4,669,032
Puerto Rico, Electric Power Authority, Power Revenue, Series A, 6.75%, 7/1/2036		12,030,000		9,898,765
Puerto Rico, Public Buildings Authority Revenue, Government Facilities, Series M, 6.25%, 7/1/2022		5,000,000		4,077,500
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue:
Series C, 5.25%, 8/1/2041		3,065,000		2,251,059
Series A, 5.5%, 8/1/2042		4,045,000		3,077,395
Series A, 5.75%, 8/1/2037		2,130,000		1,709,794
Series A, 6.0%, 8/1/2042		4,570,000		3,689,361
Series A, 6.375%, 8/1/2039		10,000,000		8,447,200
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue, Convertible Capital Appreciation, Series A, Step-up Coupon, 0% to 8/1/2016, 6.75% to 8/1/2032		10,000,000		7,415,200
				84,482,461
South Carolina 1.1%
Greenwood County, SC, Hospital Revenue, Self Regional Healthcare, Series B, 5.0%, 10/1/2031		1,000,000		1,035,440
Hardeeville, SC, Assessment Revenue, Anderson Tract Municipal Improvement District:
Series B, 7.5%, 11/1/2015		660,000		646,298
Series A, 7.75%, 11/1/2039		4,679,000		3,972,518
South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Palmetto Health Alliance, 5.75%, 8/1/2039		3,595,000		3,718,381
South Carolina, State Public Service Authority Revenue, Santee Cooper, Series A, 5.75%, 12/1/2043		8,890,000		9,754,819
				19,127,456
South Dakota 0.5%
South Dakota, State Health & Educational Facilities Authority Revenue, Avera Health:
Series B, 5.25%, 7/1/2038		3,000,000		3,034,560
Series B, 5.5%, 7/1/2035		5,000,000		5,120,700
South Dakota, State Health & Educational Facilities Authority Revenue, Sanford Health, 5.0%, 11/1/2027		1,000,000		1,020,690
				9,175,950
Tennessee 2.8%
Clarksville, TN, Natural Gas Acquisition Corp., Gas Revenue:
5.0%, 12/15/2017		2,500,000		2,750,750
5.0%, 12/15/2018		2,160,000		2,393,431
Jackson, TN, Hospital Revenue, Jackson-Madison Project, 5.625%, 4/1/2038		3,000,000		3,138,090
Johnson City, TN, Health & Educational Facilities, Board Hospital Revenue, First Mortgage, Mountain States Health Alliance, Series A, 5.5%, 7/1/2036		18,795,000		19,072,038
Johnson City, TN, Health & Educational Facilities, Board Hospital Revenue, Mountain States Health Alliance:
5.0%, 8/15/2042		2,000,000		1,930,420
6.5%, 7/1/2038		3,570,000		3,866,239
Tennessee, Energy Acquisition Corp., Gas Revenue:
Series C, 5.0%, 2/1/2027		6,435,000		6,644,266
Series A, 5.25%, 9/1/2018		8,000,000		8,928,800
				48,724,034
Texas 12.6%
Bexar County, TX, Health Facilities Development Corp. Revenue, Army Retirement Residence Project, 6.2%, 7/1/2045		6,000,000		6,261,120
Brazos River, TX, Harbor Navigation District, Brazoria County Environmental Health, Dow Chemical Co. Project:
Series B-2, 4.95%, 5/15/2033		4,000,000		4,041,840
Series A-3, AMT, 5.125%, 5/15/2033		9,000,000		9,061,560
Brazos River, TX, Pollution Control Authority Revenue, Series D-1, 144A, AMT, 8.25%, 5/1/2033		7,000,000		244,930
Cass County, TX, Industrial Development Corp., Environmental Improvement Revenue, International Paper Co. Projects, Series A, 9.25%, 3/1/2024		2,000,000		2,387,320
Central Texas, Regional Mobility Authority Revenue, Capital Appreciation:
Zero Coupon, 1/1/2030		5,000,000		1,944,050
Zero Coupon, 1/1/2032		3,500,000		1,178,870
Central Texas, Regional Mobility Authority Revenue, Senior Lien:
Series A, 5.0%, 1/1/2043		1,000,000		908,980
6.0%, 1/1/2041		5,455,000		5,564,918
Gulf Coast, TX, Industrial Development Authority, Exxon Mobil Project, 0.04%**, 11/1/2041		800,000		800,000
Harris County, TX, Cultural Education Facilities Finance Corp. Revenue, 1st Mortgage-Brazos Presbyterian Homes, Inc. Project:
Series B, 7.0%, 1/1/2043 (b)		3,000,000		3,023,760
Series B, 7.0%, 1/1/2048 (b)		4,000,000		3,999,640
Houston, TX, Airport Systems Revenue, Special Facilities Continental Airlines, Inc. Terminal Projects, AMT, 6.625%, 7/15/2038		2,000,000		2,001,560
Houston, TX, Transportation/Tolls Revenue, Special Facilities, Continental Airlines, Inc., Series E, AMT, 6.75%, 7/1/2029		10,100,000		10,098,788
La Vernia, TX, Higher Education Finance Corp. Revenue, Lifeschools of Dallas:
Series A, 7.25%, 8/15/2031		1,275,000		1,370,217
Series A, 7.5%, 8/15/2041		1,785,000		1,927,175
Lewisville, TX, Combination Contract Revenue, 6.75%, 10/1/2032		15,345,000		15,490,625
Matagorda County, TX, Navigation District No. 1, Pollution Control Revenue, AEP Texas Central Co. Project, Series A, 4.4%, 5/1/2030, INS: AMBAC		11,000,000		10,189,410
Matagorda County, TX, Navigation District No. 1, Pollution Control Revenue, Central Power & Light Co. Project, Series A, 6.3%, 11/1/2029		3,000,000		3,321,870
North Texas, Tollway Authority Revenue:
First Tier, Series A, 5.625%, 1/1/2033		1,000,000		1,060,890
Second Tier, Series F, 5.75%, 1/1/2038		17,500,000		18,354,525
First Tier, 6.0%, 1/1/2043		5,000,000		5,362,900
First Tier, Series A, 6.25%, 1/1/2039		9,525,000		10,521,029
Red River, TX, Health Facilities Development Corp., Retirement Facilities Revenue, Sears Methodist Retirement System Obligated Group Project:
Series A, 5.45%, 11/15/2038		2,411,000		1,924,002
Series A, 6.05%, 11/15/2046		2,565,000		2,165,630
Series D, 6.05%, 11/15/2046		445,000		375,714
Series B, 6.15%, 11/15/2049		4,852,000		4,116,097
Series C, 6.25%, 5/9/2053		226,000		192,740
San Antonio, TX, Convention Center Hotel Finance Corp., Contract Revenue, Empowerment Zone, Series A, AMT, 5.0%, 7/15/2039, INS: AMBAC		8,000,000		7,239,760
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facility, Mirador Project:
Series A, 8.125%, 11/15/2039		1,000,000		1,038,280
Series A, 8.25%, 11/15/2044		3,430,000		3,568,332
Texas, Dallas/Fort Worth International Airport Revenue:
Series D, 5.0%, 11/1/2035		2,715,000		2,754,530
Series A, 5.25%, 11/1/2038		15,000,000		15,242,850
Texas, Love Field Airport Modernization Corp., Special Facilities Revenue, Southwest Airlines Co. Project, 5.25%, 11/1/2040		7,445,000		7,370,550
Texas, Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue:
Series D, 5.625%, 12/15/2017		8,875,000		9,996,623
Series D, 6.25%, 12/15/2026		16,875,000		19,396,462
Texas, SA Energy Acquisition Public Facility Corp., Gas Supply Revenue, 5.5%, 8/1/2020		10,000,000		11,296,100
Texas, State Municipal Gas Acquisition & Supply Corp., III Gas Supply Revenue, 5.0%, 12/15/2030		1,670,000		1,617,879
Texas, State Private Activity Bond, Surface Transportation Corp. Revenue, Senior Lien, North Tarrant Express Mobility Partners Segments LLC, AMT, 6.75%, 6/30/2043		2,220,000		2,329,646
Texas, Uptown Development Authority, Tax Increment Contract Revenue, Infrastructure Improvement Facilities, 5.5%, 9/1/2029		1,000,000		1,039,510
Travis County, TX, Health Facilities Development Corp. Revenue, Westminster Manor Health:
7.0%, 11/1/2030		1,530,000		1,635,157
7.125%, 11/1/2040		3,580,000		3,796,876
				216,212,715
Virginia 1.3%
Virginia, Marquis Community Development Authority Revenue:
Series C, Zero Coupon, 9/1/2041		7,906,000		771,468
Series B, 5.625%, 9/1/2041		5,332,000		4,269,812
Virginia, Mosaic District Community Development Authority Revenue, Series A, 6.875%, 3/1/2036		2,000,000		2,207,520
Virginia, Peninsula Ports Authority, Residential Care Facility Revenue, Virginia Baptist Homes, Series C, 5.4%, 12/1/2033		2,600,000		2,183,974
Virginia, Route 460 Funding Corp., Toll Road Revenue, Series A, 5.0%, 7/1/2052		12,000,000		10,762,440
Virginia, State Small Business Financing Authority Revenue, Elizabeth River Crossings LLC Project, AMT, 6.0%, 1/1/2037		2,000,000		2,066,220
				22,261,434
Washington 1.8%
Klickitat County, WA, Public Hospital District No. 2 Revenue, Skyline Hospital, 6.5%, 12/1/2038		3,205,000		3,009,847
Washington, Port of Seattle, Industrial Development Corp., Special Facilities- Delta Airlines, AMT, 5.0%, 4/1/2030		2,000,000		1,768,620
Washington, State Health Care Facilities Authority Revenue, Series C, 5.375%, 8/15/2028, INS: Radian		2,970,000		2,990,582
Washington, State Health Care Facilities Authority Revenue, Virginia Mason Medical Center:
Series B, 5.75%, 8/15/2037, INS: ACA		6,675,000		6,757,570
Series A, 6.125%, 8/15/2037		16,000,000		16,402,720
				30,929,339
West Virginia 0.8%
West Virginia, State Hospital Finance Authority Revenue, Charleston Medical Center, Series A, 5.625%, 9/1/2032		3,080,000		3,164,916
West Virginia, State Hospital Finance Authority Revenue, Thomas Health Systems, 6.5%, 10/1/2028		10,000,000		9,878,950
				13,043,866
Wisconsin 1.0%
Wisconsin, Public Finance Authority, Apartment Facilities Revenue, Senior Obligation Group, AMT, 5.0%, 7/1/2042		3,500,000		3,002,895
Wisconsin, State Health & Educational Facilities Authority Revenue, Aurora Health Care, Inc., Series A, 5.625%, 4/15/2039		8,160,000		8,285,990
Wisconsin, State Health & Educational Facilities Authority Revenue, Ministry Health Care, Inc., Series C, 5.0%, 8/15/2032		5,035,000		5,111,029
Wisconsin, State Health & Educational Facilities Authority Revenue, St. John's Communities, Inc., Series A, 7.625%, 9/15/2039		1,000,000		1,068,600
				17,468,514
Other Territories 0.1%
Non-Profit Preferred Funding Trust I, Series A1, 4.22%, 9/15/2037		2,332,796		2,306,296
Total Municipal Bonds and Notes (Cost $1,552,962,600)				1,589,179,338

Municipal Inverse Floating Rate Notes (c) 15.7%
California 0.3%
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2027, INS: AGMC (d)		2,126,587		2,294,412
San Diego County, CA, Water Authority Revenue, Certificates of Participation, Series 2008-A, 5.0%, 5/1/2028, INS: AGMC (d)		1,935,078		2,087,790
Trust: San Diego County, CA, Water Utility Improvements, Certificates of Participation, Series 2008-1104, 144A, 9.344%, 11/1/2015, Leverage Factor at purchase date: 2 to 1
				4,382,202
Hawaii 0.7%
Hawaii, State General Obligation, Series DK, 5.0%, 5/1/2027 (d)		10,000,000		11,083,100
Trust: Hawaii, State General Obligation, Series 2867, 144A, 18.14%, 5/1/2016, Leverage Factor at purchase date: 4 to 1
Louisiana 0.6%
Louisiana, State Gas & Fuels Tax Revenue, Series B, 5.0%, 5/1/2033 (d)		3,026,513		3,217,125
Louisiana, State Gas & Fuels Tax Revenue, Series B, 5.0%, 5/1/2034 (d)		3,304,152		3,512,250
Louisiana, State Gas & Fuels Tax Revenue, Series B, 5.0%, 5/1/2035 (d)		3,666,834		3,897,774
Trust: Louisiana, State Gas & Fuels Tax Revenue, Series 3806, 144A, 9.408%, 5/1/2018, Leverage Factor at purchase date: 2 to 1
				10,627,149
Nevada 2.5%
Clark County, NV, School District, Series C, 5.0%, 6/15/2021 (d)		7,851,481		8,684,474
Clark County, NV, School District, Series C, 5.0%, 6/15/2022 (d)		8,203,602		9,073,952
Clark County, NV, School District, Series C, 5.0%, 6/15/2023 (d)		5,298,193		5,860,299
Trust: Clark County, NV, School Improvements, Series 2008-1153, 144A, 9.171%, 6/15/2015, Leverage Factor at purchase date: 2 to 1
Las Vegas Valley, NV, General Obligation, Water District, Series A, 5.0%, 2/1/2035 (d)		9,150,000		9,398,260
Las Vegas Valley, NV, General Obligation, Water District, Series A, 5.0%, 2/1/2036 (d)		9,605,000		9,865,605
Trust: Las Vegas Valley, NV, General Obligation, Water District, 144A, 9.388%, 2/1/2016, Leverage Factor at purchase date: 2 to 1
				42,882,590
New York 2.2%
New York, State Dormitory Authority Revenues, Personal Income Tax Revenue, Series A, 5.0%, 3/15/2023 (d)		5,095,207		5,672,881
Trust: New York, State Dormitory Authority Revenues, Secondary Issues, Series 1955-2, 144A, 18.213%, 3/15/2015, Leverage Factor at purchase date: 4 to 1
New York, State Dormitory Authority, Personal Income Tax Revenue, Series F, 5.0%, 2/15/2035 (d)		10,000,000		10,505,300
Trust: New York, State Dormitory Authority Revenues, Series 4688, 144A, 9.48%, 3/15/2024, Leverage Factor at purchase date: 2 to 1
New York, State Environmental Facilities Corp., Clean Drinking Water, Series A, 5.0%, 6/15/2025 (d)		4,000,000		4,502,755
New York, State Environmental Facilities Corp., Clean Drinking Water, Series A, 5.0%, 6/15/2026 (d)		3,000,000		3,377,066
New York, State Environmental Facilities Corp., Clean Drinking Water, Series A, 5.0%, 6/15/2027 (d)		3,000,000		3,377,067
Trust: New York, State Environmental Facilities Corp., Clean Drinking Water, Series 2870, 144A, 16.547%, 12/15/2015, Leverage Factor at purchase date: 3.6 to 1
New York City, NY, Transitional Finance Authority Revenue, Series C-1, 5.0%, 11/1/2027 (d)		10,000,000		11,025,280
Trust: New York City, NY, Transitional Finance Authority Revenue, Series 2072, 144A, 11.45%, 11/1/2027, Leverage Factor at purchase date: 2.5 to 1
				38,460,349
Ohio 0.7%
Ohio, State Higher Educational Facilities Commission Revenue, Cleveland Clinic Health, Series A, 5.125%, 1/1/2028 (d)		4,522,767		4,706,499
Ohio, State Higher Educational Facilities Commission Revenue, Cleveland Clinic Health, Series A, 5.25%, 1/1/2033 (d)		7,712,913		8,026,241
Trust: Ohio, State Higher Educational Revenue, Series 3139, 144A, 14.619%, 1/1/2016, Leverage Factor at purchase date: 3 to 1
				12,732,740
Pennsylvania 2.5%
Pennsylvania, State General Obligation, Series A, 5.0%, 8/1/2023 (d)		21,790,000		24,658,662
Trust: Pennsylvania, State General Obligation, Series R-11505-1, 144A, 44.94%, 8/1/2015, Leverage Factor at purchase date: 10 to 1
Pennsylvania, State Revenue Bond, Series A, 5.0%, 8/1/2024 (d)		15,475,000		17,511,348
Trust: Pennsylvania, State Revenue Bond, Series 2720, 144A, 12.977%, 8/1/2015, Leverage Factor at purchase date: 3 to 1
				42,170,010
Tennessee 1.0%
Nashville & Davidson County, TN, Metropolitan Government, 5.0%, 1/1/2024 (d)		14,996,415		17,443,365
Trust: Nashville & Davidson County, TN, Metropolitan Government, Series 2631-1, 144A, 18.226%, 1/1/2016, Leverage Factor at purchase date: 4 to 1
Texas 3.3%
Conroe, TX, Independent School District, School Building, 5.0%, 2/15/2024 (d)		3,710,000		4,047,042
Conroe, TX, Independent School District, School Building, 5.0%, 2/15/2025 (d)		4,315,000		4,707,005
Trust: Conroe, TX, Independent School District, Series 2487, 144A, 18.107%, 2/15/2014, Leverage Factor at purchase date: 4 to 1
Harris County, TX, Flood Control District, Series A, 5.0%, 10/1/2034 (d)		5,500,000		5,848,260
Trust: Harris County, TX, Flood Control District, Series 4692, 144A, 9.58%, 10/11/2018, Leverage Factor at purchase date: 2 to 1
San Antonio, TX, Electric & Gas Revenue, 5.0%, 2/1/2024 (d)		15,000,000		16,903,350
Trust: San Antonio, TX, Electric & Gas Revenue, Series 2957, 144A, 13.76%, 2/1/2016, Leverage Factor at purchase date: 3 to 1
Texas, North East Independent School District, School Building, Series A, 5.0%, 8/1/2024 (d)		10,000,000		11,315,900
Trust: Texas, North East Independent School District, Series 2355, 144A, 22.64%, 8/1/2015, Leverage Factor at purchase date: 5 to 1
Texas, State Transportation Commission Revenue, 5.0%, 4/1/2026 (d)		12,500,000		14,030,625
Trust: Texas, State Transportation Commission Revenue, Series 2563, 144A, 22.52%, 4/1/2015, Leverage Factor at purchase date: 5 to 1
				56,852,182
Washington 1.9%
Washington, Energy Northwest Electric Revenue, Columbia Generating Station, Series A, 5.0%, 7/1/2024 (d)		10,000,000		10,894,400
Trust: Washington, Energy Northwest Electric Revenue, Series 2301, 144A, 22.64%, 7/1/2014, Leverage Factor at purchase date: 5 to 1
Washington, State General Obligation, Series A, 5.0%, 7/1/2025 (d)		10,000,000		11,267,300
Trust: Washington, State General Obligation, Series 2154, 144A, 22.64%, 7/1/2015, Leverage Factor at purchase date: 5 to 1
Washington, State General Obligation, Series 2007A, 5.0%, 7/1/2023, INS: AGMC (d)		10,000,000		11,173,900
Trust: Washington, State General Obligation, Series 2302, 144A, 22.56%, 7/1/2014, Leverage Factor at purchase date: 5 to 1
				33,335,600
Total Municipal Inverse Floating Rate Notes (Cost $249,625,278)				269,969,287

	% of Net Assets			Value ($)

Total Investment Portfolio (Cost $1,802,587,878)†		108.4			1,859,148,625
Other Assets and Liabilities, Net		(8.4	)		(143,634,880	)
Net Assets		100.0			1,715,513,745

The following table represents bonds that are in default:

Security

Coupon

Maturity Date

Principal Amount ($)

Cost ($)

Value ($)

Boston, MA, Industrial Development Financing Authority Revenue, Crosstown Center Project, AMT*

8.0

9/1/2035

960,000

313,853

* Non-income producing security.

** 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 November 30, 2013.

† The cost for federal income tax purposes was $1,630,747,578. At November 30, 2013, net unrealized appreciation for all securities based on tax cost was $62,046,477. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $112,257,922 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $50,211,445.

(a) At November 30, 2013, this security has been pledged, in whole or in part, as collateral for tender option bond trust.

(b) When-issued security.

(d) Security forms part of the below tender option bond trust. Principal Amount and Value shown take into account the leverage factor.

144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

ACA: ACA Financial Guaranty Corp.

AGC: Assured Guaranty Corp.

AGMC: Assured Guaranty Municipal Corp.

AMBAC: Ambac Financial Group, Inc.

AMT: Subject to alternative minimum tax.

FGIC: Financial Guaranty Insurance Co.

GTY: Guaranty Agreement

INS: Insured

NATL: National Public Finance Guarantee Corp.

Prerefunded: Bonds which are prerefunded are collateralized usually by U.S. Treasury securities which are held in escrow and used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date.

Radian: Radian Asset Assurance, Inc.

Fair Value Measurements

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

The following is a summary of the inputs used as of November 30, 2013 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.

Assets	Level 1		Level 2		Level 3		Total

Municipal Investments (e)	$	—	$	1,859,148,625	$	—	$	1,859,148,625
Total	$	—	$	1,859,148,625	$	—	$	1,859,148,625

There have been no transfers between fair value measurement levels during the period ended November 30, 2013.

(e) See Investment Portfolio for additional detailed categorizations.

The accompanying notes are an integral part of the financial statements.

Statement of Assets and Liabilities

as of November 30, 2013 (Unaudited)
Assets
Investments in non-affiliated securities, at value (cost $1,802,587,878)	$	1,859,148,625
Cash		423,053
Receivable for investments sold		1,760,000
Receivable for Fund shares sold		5,389,263
Interest receivable		29,934,526
Due from Advisor		174,852
Other assets		106,371
Total assets		1,896,936,690
Liabilities
Payable for investments purchased — when-issued securities		6,980,610
Payable for Fund shares redeemed		4,758,884
Payable for floating rate notes issued		166,354,570
Distributions payable		1,503,425
Accrued management fee		708,288
Accrued Trustees' fees		32,193
Other accrued expenses and payables		1,084,975
Total liabilities		181,422,945
Net assets, at value	$	1,715,513,745
Net Assets Consist of
Undistributed net investment income		1,510,233
Net unrealized appreciation (depreciation) on investments		56,560,747
Accumulated net realized gain (loss)		(129,520,145	)
Paid-in capital		1,786,962,910
Net assets, at value	$	1,715,513,745

The accompanying notes are an integral part of the financial statements.

Statement of Assets and Liabilities as of November 30, 2013 (Unaudited) (continued)
Net Asset Value
Class A Net Asset Value and redemption price per share ($446,447,692 ÷ 37,593,617 outstanding shares of capital stock outstanding, $.01 par value, unlimited number of shares authorized)	$	11.88
Maximum offering price per share (100 ÷ 97.25 of $11.88)	$	12.22
Class B Net Asset Value offering and redemption price (subject to contingent deferred sales charge) per share ($4,057,628 ÷ 341,652 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	11.88
Class C Net Asset Value offering and redemption price (subject to contingent deferred sales charge) per share ($148,597,522 ÷ 12,505,439 shares of capital stock outstanding, $.01 par value, unlimited number of shares authorized)	$	11.88
Class S Net Asset Value offering and redemption price per share ($853,911,658 ÷ 71,838,528 shares of capital stock outstanding, $.01 par value, unlimited number of shares authorized)	$	11.89
Institutional Class Net Asset Value offering and redemption price per share ($262,499,245 ÷ 22,078,846 shares of capital stock outstanding, $.01 par value, unlimited number of shares authorized)	$	11.89

The accompanying notes are an integral part of the financial statements.

Statement of Operations

for the six months ended November 30, 2013 (Unaudited)
Investment Income
Income: Interest	$	54,297,090
Expenses: Management fee		4,635,461
Administration fee		935,598
Services to shareholders		1,709,143
Distribution and service fees		1,482,092
Custodian fee		13,802
Professional fees		63,162
Reports to shareholders		53,733
Registration fees		61,154
Trustees' fees and expenses		38,899
Interest expense and fees on floating rate notes issued		505,657
Other		67,261
Total expenses before expense reductions		9,565,962
Expense reductions		(1,525,280	)
Total expenses after expense reductions		8,040,682
Net investment income		46,256,408
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from investments		(36,515,277	)
Change in net unrealized appreciation (depreciation) on investments		(142,291,248	)
Net gain (loss)		(178,806,525	)
Net increase (decrease) in net assets resulting from operations	$	(132,550,117	)

The accompanying notes are an integral part of the financial statements.

Statement of Cash Flows

for the six months ended November 30, 2013 (Unaudited)
Increase (Decrease) in Cash: Cash Flows from Operating Activities
Net increase (decrease) in net assets resulting from operations	$	(132,550,117	)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided (used) by operating activities: Purchases of long-term investments		(204,239,962	)
Net amortization of premium/(accretion of discount)		1,158,437
Proceeds from sales and maturities of long-term investments		566,588,715
(Increase) decrease in interest receivable		4,368,567
(Increase) decrease in other assets		(20,733	)
(Increase) decrease in receivable for investments sold		(1,760,000	)
Increase (decrease) in payable for investments purchased — when-issued securities		(1,237,282	)
Increase (decrease) in other accrued expenses and payables		(697,773	)
Change in unrealized (appreciation) depreciation on investments		142,291,248
Net realized (gain) loss from investments		36,515,277
Cash provided (used) by operating activities		410,416,377
Cash Flows from Financing Activities
Proceeds from shares sold		208,804,553
Payments for shares redeemed		(608,990,039	)
Distributions paid (net of reinvestment of distributions)		(9,850,089	)
Cash provided (used) by financing activities		(410,035,575	)
Increase (decrease) in cash		380,802
Cash at beginning of period		42,251
Cash at end of period	$	423,053
Supplemental Disclosure of Non-Cash Activities
Reinvestment of distributions	$	35,514,659
Interest expense and fees on floating rate notes issued	$	(505,657	)

The accompanying notes are an integral part of the financial statements.

Statement of Changes in Net Assets

Increase (Decrease) in Net Assets	Six Months Ended November 30, 2013 (Unaudited)			Year Ended May 31, 2013
Operations: Net investment income	$	46,256,408		$	93,051,448
Operations: Net investment income	$	46,256,408		$	93,051,448
Net realized gain (loss)		(36,515,277	)		(6,812,799	)
Change in net unrealized appreciation (depreciation)		(142,291,248	)		30,458,648
Net increase (decrease) in net assets resulting from operations		(132,550,117	)		116,697,297
Distributions to shareholders from: Net investment income: Class A		(12,057,181	)		(25,535,786	)
Class B		(98,508	)		(231,349	)
Class C		(3,410,353	)		(6,833,242	)
Class S		(23,274,183	)		(47,793,999	)
Institutional Class		(7,010,160	)		(11,066,955	)
Total distributions		(45,850,385	)		(91,461,331	)
Fund share transactions: Proceeds from shares sold		209,078,691			697,266,520
Reinvestment of distributions		35,514,659			72,190,350
Payments for shares redeemed		(605,104,030	)		(546,897,901	)
Net increase (decrease) in net assets from Fund share transactions		(360,510,680	)		222,558,969
Increase (decrease) in net assets		(538,911,182	)		247,794,935
Net assets at beginning of year		2,254,424,927			2,006,629,992
Net assets at end of year (including undistributed net investment income of $1,510,233 and $1,104,210, respectively)	$	1,715,513,745		$	2,254,424,927

The accompanying notes are an integral part of the financial statements.

Financial Highlights

						Years Ended May 31,
Class A	Six Months Ended 11/30/13 (Unaudited)				2013				2012			2011			2010			2009
Selected Per Share Data
Net asset value, beginning of period		$	12.95			$	12.78		$	11.78		$	12.23		$	11.21		$	12.46
Income from investment operations: Net investment income			.29				.55			.59			.61			.62			.64
Net realized and unrealized gain (loss)			(1.07	)			.16			1.00			(.45	)		1.02			(1.25	)
Total from investment operations			(.78	)			.71			1.59			.16			1.64			(.61	)
Less distributions from: Net investment income			(.29	)			(.54	)		(.59	)		(.61	)		(.62	)		(.64	)
Net realized gains			—				—			(.00	)***		—			—			(.00	)***
Total distributions			(.29	)			(.54	)		(.59	)		(.61	)		(.62	)		(.64	)
Net asset value, end of period		$	11.88			$	12.95		$	12.78		$	11.78		$	12.23		$	11.21
Total Return (%)a,b			(6.01	)**			5.57			13.88			1.37			14.96			(4.48	)
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)			446				618			569			432			464			275
Ratio of expenses before expense reductions (including interest expense) (%)c			1.04	*			1.03			1.03			1.08			1.05			1.39
Ratio of expenses after expense reductions (including interest expense) (%)c			.95	*			.97			.99			1.03			1.03			1.31
Ratio of expenses after expense reductions (excluding interest expense) (%)			.90	*			.91			.92			.94			.93			.92
Ratio of net investment income (%)			4.85	*			4.18			4.92			5.35			5.31			6.10
Portfolio turnover rate (%)			10	**			21			29			30			28			82
a Total return does not reflect the effect of any sales charges. b Total return would have been lower had certain expenses not been reduced. c Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized Not annualized * Amount is less than $.005.

						Years Ended May 31,
Class B	Six Months Ended 11/30/13 (Unaudited)				2013				2012			2011			2010			2009
Selected Per Share Data
Net asset value, beginning of period		$	12.95			$	12.78		$	11.78		$	12.23		$	11.21		$	12.46
Income from investment operations: Net investment income			.25				.45			.50			.52			.53			.56
Net realized and unrealized gain (loss)			(1.07	)			.16			1.00			(.45	)		1.02			(1.25	)
Total from investment operations			(.82	)			.61			1.50			.07			1.55			(.69	)
Less distributions from: Net investment income			(.25	)			(.44	)		(.50	)		(.52	)		(.53	)		(.56	)
Net realized gains			—				—			(.00	)***		—			—			(.00	)***
Total distributions			(.25	)			(.44	)		(.50	)		(.52	)		(.53	)		(.56	)
Net asset value, end of period		$	11.88			$	12.95		$	12.78		$	11.78		$	12.23		$	11.21
Total Return (%)a,b			(6.37	)**			4.78			13.02			.61			14.10			(5.19	)
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)			4				6			8			9			12			14
Ratio of expenses before expense reductions (including interest expense) (%)c			1.82	*			1.79			1.80			1.87			1.82			2.17
Ratio of expenses after expense reductions (including interest expense) (%)c			1.70	*			1.72			1.74			1.78			1.77			2.06
Ratio of expenses after expense reductions (excluding interest expense) (%)			1.65	*			1.66			1.67			1.69			1.67			1.67
Ratio of net investment income (%)			4.09	*			3.42			4.19			4.59			4.57			5.35
Portfolio turnover rate (%)			10	**			21			29			30			28			82
a Total return does not reflect the effect of any sales charges. b Total return would have been lower had certain expenses not been reduced. c Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized Not annualized * Amount is less than $.005.

						Years Ended May 31,
Class C	Six Months Ended 11/30/13 (Unaudited)				2013				2012			2011			2010			2009
Selected Per Share Data
Net asset value, beginning of period		$	12.96			$	12.79		$	11.79		$	12.24		$	11.22		$	12.47
Income from investment operations: Net investment income			.25				.45			.50			.52			.53			.56
Net realized and unrealized gain (loss)			(1.08	)			.16			1.00			(.45	)		1.02			(1.25	)
Total from investment operations			(.83	)			.61			1.50			.07			1.55			(.69	)
Less distributions from: Net investment income			(.25	)			(.44	)		(.50	)		(.52	)		(.53	)		(.56	)
Net realized gains			—				—			(.00	)***		—			—			(.00	)***
Total distributions			(.25	)			(.44	)		(.50	)		(.52	)		(.53	)		(.56	)
Net asset value, end of period		$	11.88			$	12.96		$	12.79		$	11.79		$	12.24		$	11.22
Total Return (%)a,b			(6.44	)**			4.78			13.03			.61			14.11			(5.17	)
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)			149				202			188			141			154			87
Ratio of expenses before expense reductions (including interest expense) (%)c			1.80	*			1.78			1.77			1.82			1.84			2.16
Ratio of expenses after expense reductions (including interest expense) (%)c			1.70	*			1.72			1.74			1.78			1.78			2.06
Ratio of expenses after expense reductions (excluding interest expense) (%)			1.65	*			1.66			1.67			1.69			1.68			1.67
Ratio of net investment income (%)			4.10	*			3.43			4.16			4.60			4.56			5.35
Portfolio turnover rate (%)			10	**			21			29			30			28			82
a Total return does not reflect the effect of any sales charges. b Total return would have been lower had certain expenses not been reduced. c Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized Not annualized * Amount is less than $.005.

						Years Ended May 31,
Class S	Six Months Ended 11/30/13 (Unaudited)				2013				2012			2011			2010			2009
Selected Per Share Data
Net asset value, beginning of period		$	12.96			$	12.79		$	11.79		$	12.24		$	11.22		$	12.47
Income from investment operations: Net investment income			.31				.58			.62			.64			.65			.67
Net realized and unrealized gain (loss)			(1.07	)			.16			1.00			(.45	)		1.02			(1.25	)
Total from investment operations			(.76	)			.74			1.62			.19			1.67			(.58	)
Less distributions from: Net investment income			(.31	)			(.57	)		(.62	)		(.64	)		(.65	)		(.67	)
Net realized gains			—				—			(.00	)***		—			—			(.00	)***
Total distributions			(.31	)			(.57	)		(.62	)		(.64	)		(.65	)		(.67	)
Net asset value, end of period		$	11.89			$	12.96		$	12.79		$	11.79		$	12.24		$	11.22
Total Return (%)a			(5.88	)**			5.83			14.15			1.63			15.22			(4.23	)
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)			854				1,128			1,023			832			858			645
Ratio of expenses before expense reductions (including interest expense) (%)b			.93	*			.89			.90			.94			.98			1.30
Ratio of expenses after expense reductions (including interest expense) (%)b			.70	*			.72			.74			.78			.78			1.06
Ratio of expenses after expense reductions (excluding interest expense) (%)			.65	*			.66			.67			.69			.68			.67
Ratio of net investment income (%)			5.10	*			4.43			5.17			5.60			5.56			6.35
Portfolio turnover rate (%)			10	**			21			29			30			28			82
a Total return would have been lower had certain expenses not been reduced. b Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized Not annualized * Amount is less than $.005.

						Years Ended May 31,
Institutional Class	Six Months Ended 11/30/13 (Unaudited)				2013				2012			2011			2010			2009
Selected Per Share Data
Net asset value, beginning of period		$	12.97			$	12.79		$	11.79		$	12.24		$	11.22		$	12.48
Income from investment operations: Net investment income			.31				.58			.63			.64			.66			.67
Net realized and unrealized gain (loss)			(1.08	)			.17			1.00			(.45	)		1.02			(1.26	)
Total from investment operations			(.77	)			.75			1.63			.19			1.68			(.59	)
Less distributions from: Net investment income			(.31	)			(.57	)		(.63	)		(.64	)		(.66	)		(.67	)
Net realized gains			—				—			(.00	)***		—			—			(.00	)***
Total distributions			(.31	)			(.57	)		(.63	)		(.64	)		(.66	)		(.67	)
Net asset value, end of period		$	11.89			$	12.97		$	12.79		$	11.79		$	12.24		$	11.22
Total Return (%)a			(5.95	)**			5.93			14.17			1.66			15.33			(4.26	)
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)			262				301			220			143			147			28
Ratio of expenses before expense reductions (including interest expense) (%)b			.79	*			.79			.79			.82			.79			1.13
Ratio of expenses after expense reductions (including interest expense) (%)b			.70	*			.71			.74			.75			.76			1.06
Ratio of expenses after expense reductions (excluding interest expense) (%)			.65	*			.65			.67			.66			.66			.67
Ratio of net investment income (%)			5.12	*			4.44			5.16			5.62			5.58			6.35
Portfolio turnover rate (%)			10	**			21			29			30			28			82
a Total return would have been lower had certain expenses not been reduced. b Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. * Annualized Not annualized * Amount is less than $.005.

Notes to Financial Statements (Unaudited)

A. Organization and Significant Accounting Policies

DWS Strategic High Yield Tax-Free Fund (the "Fund") is a diversified series of DWS Municipal Trust (the "Trust"), which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Massachusetts business trust.

The Fund offers multiple classes of shares which provide investors with different purchase options. Class A shares are offered to investors subject to an initial sales charge. Class B shares of the Fund are closed to new purchases, except exchanges or the reinvestment of dividends or other distributions. Class B shares were offered to investors without an initial sales charge and are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions. Class B shares automatically convert to Class A shares six years after issuance. Class C shares are offered to investors without an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions within one year of purchase. Class C shares do not automatically convert into another class. Institutional Class shares are generally available only to qualified institutions, are not subject to initial or contingent deferred sales charges and generally have lower ongoing expenses than other classes. Class S shares are not subject to initial or contingent deferred sales charges and are only available to a limited group of investors.

Investment income, realized and unrealized gains and losses, and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.

The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.

Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.

Municipal debt securities are valued at prices supplied by independent pricing services approved by the Fund's Board, whose valuations are intended to reflect the mean between the bid and asked prices. If the pricing services are unable to provide valuations, the securities are valued at the mean of the most recent bid and asked quotations or evaluated prices, as applicable, obtained from one or more broker-dealers. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. These securities are generally categorized as Level 2.

Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Fund's valuation procedures, factors used in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security's disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company's or issuer's financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.

Disclosure about the classification of fair value measurements is included in a table following the Fund's Investment Portfolio.

Inverse Floaters. The Fund invests in inverse floaters. Inverse floaters are debt instruments with a weekly floating rate of interest that bears an inverse relationship to changes in the short-term interest rate market. Inverse floaters are created by depositing a fixed-rate municipal bond into a special purpose trust (the "Trust"). In turn the Trust issues a short-term floating rate note and an inverse floater. The income stream from the underlying bond in the Trust is divided between the floating rate note and the inverse floater. The income provided by the inverse floater bears an inverse relationship with the short-term rate paid to the floating rate note holder. The short-term floating rate note is issued in a face amount equal to some fraction of the underlying bond's par amount and is paid to a third party, usually a tax-exempt money market fund, at rates that generally reset weekly. The inverse floater earns all of the interest from the underlying fixed-rate bond less the amount of interest paid on the floating rate note and the expenses of the Trust. The inverse floater represents an investment in the underlying bond on a leveraged basis; the Fund bears all of the price risk of the underlying bond in the Trust and receives all the benefits from any potential appreciation of the underlying bond's value. The floating rate notes issued by the Trust are valued at cost, which approximates fair value.

By holding the inverse floater, the Fund has the right to collapse the Trust by causing the holders of the floating rate instrument to tender their notes at par and have the broker transfer the underlying bond to the Fund. The floating rate note holder can also elect to tender the note for redemption at par at each reset date. The Fund accounts for these transactions 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 under the caption "Payable for floating rate notes issued" in the Statement of Assets and Liabilities. Income earned on the underlying bond is included in interest income, and interest paid on the floaters and the expenses of the Trust are included in "Interest expense and fees on floating rate notes issued" in the Statement of Operations.

The Fund may enter into shortfall and forbearance agreements by which the Fund agrees to reimburse the Trust, in certain circumstances, for the difference between the liquidation value of the underlying bond held by the Trust and the liquidation value of the floating rate notes plus any shortfalls in interest cash flows. This could potentially expose the Fund to losses in excess of the value of the Fund's inverse floater investments. In addition, the value of inverse floaters may decrease significantly when interest rates increase. The market for inverse floaters may be more volatile and less liquid than other municipal bonds of comparable maturity. The Trust could be terminated outside of the Fund's control, resulting in a reduction of leverage and disposal of portfolio investments at inopportune times and prices. Investments in inverse floaters generally involve greater risk than in an investment in fixed-rate bonds. In connection with these agreements, securities and or cash may be pledged as collateral.

The weighted average outstanding daily balance of the floating rate notes issued during the six months ended November 30, 2013 was approximately $166,355,000, with a weighted average interest rate of 0.61%.

When-Issued/Delayed Delivery Securities. The Fund may purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time the Fund enters into a commitment to purchase a security, the transaction is recorded and the value of the transaction is reflected in the net asset value. The price of such security and the date when the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. At the time the Fund enters into a purchase transaction it is required to segregate cash or other liquid assets at least equal to the amount of the commitment.

Certain risks may arise upon entering into when-issued or delayed delivery transaction from the potential inability of counterparties to meet the terms of their contracts or if the issuer does not issue the securities due to political, economic, or other factors. Additionally, losses may arise due to changes in the value of the underlying securities.

Federal Income Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable and tax-exempt income to its shareholders.

Under the Regulated Investment Company Modernization Act of 2010, net capital losses incurred post-enactment may be carried forward indefinitely, and their character is retained as short-term and/or long-term. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

At May 31, 2013, the Fund had net tax basis capital loss carryforwards of approximately $97,943,000, including $28,939,000 of pre-enactment losses, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until May 31, 2014 ($2,294,000), May 31, 2015 ($234,000), May 31, 2017 ($3,436,000), May 31, 2018 ($19,507,000) and May 31, 2019 ($3,468,000), the respective expiration dates, whichever occurs first; and approximately $69,004,000 of post-enactment losses, which may be applied against realized net taxable capital gains indefinitely, including short-term losses ($45,234,000) and long-term losses ($23,770,000).

The Fund has reviewed the tax positions for the open tax years as of May 31, 2013 and has determined that no provision for income tax is required in the Fund's financial statements. The Fund's federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.

Distribution of Income and Gains. Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually. The Fund may also make additional distributions for tax purposes if necessary.

The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to investments in inverse floaters transactions, certain securities sold at a loss and accretion of market discount on debt securities. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.

The tax character of current year distributions will be determined at the end of the current fiscal year.

Expenses. Expenses of the Trust arising in connection with a specific fund are allocated to that fund. Other Trust expenses which cannot be directly attributed to a fund are apportioned among the funds in the Trust based upon the relative net assets or other appropriate measures.

Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.

Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Proceeds from litigation payments, if any, are included in net realized gain (loss) from investments. All premiums and discounts are amortized/accreted for financial reporting purposes, with the exception of securities in default of principal.

Statement of Cash Flows. Information on financial transactions which have been settled through the receipt and disbursement of cash is presented in the Statement of Cash Flows. The cash amount shown in the Statement of Cash Flows represents the cash position at the Fund's custodian bank at November 30, 2013.

B. Purchases and Sales of Securities

During the six months ended November 30, 2013, purchases and sales of investment securities (excluding short-term investments) aggregated $204,239,962 and $566,588,715, respectively.

C. Related Parties

Management Agreement. Under the Investment Management Agreement with Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.

Under the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the Fund's average daily net assets, computed and accrued daily and payable monthly, at the following annual rates:

First $300 million of the Fund's average daily net assets	.565	%
Next $200 million of such net assets	.515	%
Next $500 million of such net assets	.490	%
Next $1 billion of such net assets	.470	%
Over $2 billion of such net assets	.450	%

Accordingly, for the six months ended November 30, 2013, the fee pursuant to the Investment Management Agreement was equivalent to an annualized effective rate of 0.50% of the Fund's average daily net assets.

For the period from June 1, 2013 through September 30, 2013, the Advisor had contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) of each class as follows:

Class A	.91%
Class B	1.66%
Class C	1.66%
Class S	.66%
Institutional Class	.66%

Effective October 1, 2013 through September 30, 2014, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) of each class as follows:

Class A	.86%
Class B	1.61%
Class C	1.61%
Class S	.61%
Institutional Class	.61%

Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee ("Administration Fee") of 0.10% of the Fund's average daily net assets, computed and accrued daily and payable monthly. For the six months ended November 30, 2013, the Administration Fee was $935,598, of which $142,393 is unpaid.

Service Provider Fees. DWS Investments Service Company ("DISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to a sub-transfer agency agreement between DISC and DST Systems, Inc. ("DST"), DISC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DISC compensates DST out of the shareholder servicing fee it receives from the Fund. For the six months ended November 30, 2013, the amounts charged to the Fund by DISC were as follows:

Services to Shareholders	Total Aggregated		Waived
Class A	$	26,538	$	26,538
Class B		557		557
Class C		11,122		11,122
Class S		298,255		298,255
Institutional Class		4,656		4,656
	$	341,128	$	341,128

In addition, for the six months ended November 30, 2013, the Advisor reimbursed the Fund $775,573 and $127,723 of sub-recordkeeping fees for Class S and Institutional Class shares, respectively.

Distribution and Service Fees. Under the Fund's Class B and Class C 12b-1 Plans, DWS Investments Distributors, Inc. ("DIDI"), an affiliate of the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily net assets of each of Class B and C shares. In accordance with the Fund's Underwriting and Distribution Services Agreement, DIDI enters into related selling group agreements with various firms at various rates for sales of Class B and C shares. For the six months ended November 30, 2013, the Distribution Fee was as follows:

Distribution Fee	Total Aggregated		Unpaid at November 30, 2013
Class B	$	18,256	$	2,584
Class C		630,639		93,272
	$	648,895	$	95,856

In addition, DIDI provides information and administrative services for a fee ("Service Fee") to Class A, B and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. DIDI in turn has various agreements with financial services firms that provide these services and pay these fees based upon the assets of shareholder accounts the firms service. For the six months ended November 30, 2013, the Service Fee was as follows:

Service Fee	Total Aggregated		Waived		Unpaid at November 30, 2013		Annualized Effective Rate
Class A	$	617,075	$	206,230	$	185,220		.16	%
Class B		6,062		2,243		1,934		.16	%
Class C		210,060		72,383		48,987		.16	%
	$	833,197	$	280,856	$	236,141

Underwriting Agreement and Contingent Deferred Sales Charge. DIDI is the principal underwriter for the Fund. Underwriting commissions paid in connection with the distribution of Class A shares for the six months ended November 30, 2013 aggregated $14,842.

In addition, DIDI receives any contingent deferred sales charge ("CDSC") from Class B share redemptions occurring within six years of purchase and Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is based on declining rates, ranging from 4% to 1% for Class B and 1% for Class C, of the value of the shares redeemed. For the six months ended November 30, 2013, the CDSC for Class B and Class C shares aggregated $5,187 and $26,016, respectively. A deferred sales charge of up to 0.50% is assessed on certain redemptions of Class A shares. For the six months ended November 30, 2013, DIDI received $38,788 for Class A shares.

Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Fund. For the six months ended November 30, 2013, the amount charged to the Fund by DIMA included in the Statement of Operations under "reports to shareholders" aggregated $11,438, of which $7,876 is unpaid.

Trustees' Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and Vice Chairperson and to each committee Chairperson.

D. Investing in High-Yield Securities

The Fund's performance could be hurt if a security declines in credit quality or goes into default, or if an issuer does not make timely payments of interest or principal. Because the issuers of high-yield debt securities or junk bonds (debt securities rated below the fourth-highest category) may be in uncertain financial health, the risk of loss from default by the issuer is significantly greater. Prices and yields of high-yield securities will fluctuate over time and, during periods of economic uncertainty, volatility of high-yield securities may adversely affect a fund's net asset value. Because the Fund may invest in securities not paying current interest or in securities already in default, these risks may be more pronounced.

E. Line of Credit

The Fund and other affiliated funds (the "Participants") share in a $375 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if LIBOR exceeds the Federal Funds Rate the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at November 30, 2013.

F. Share Transactions

The following table summarizes share and dollar activity in the Fund:

	Six Months Ended November 30, 2013						Year Ended May 31, 2013
	Shares			Dollars			Shares			Dollars
Shares sold
Class A		3,576,205		$	43,035,030			15,378,010		$	200,957,397
Class B		779			9,435			16,587			218,762
Class C		571,727			6,870,605			3,758,171			49,032,738
Class S		8,544,182			102,755,995			24,445,039			319,989,799
Institutional Class		4,685,981			56,407,626			9,695,490			127,067,824
				$	209,078,691					$	697,266,520
Shares issued to shareholders in reinvestment of distributions
Class A		846,499		$	10,082,408			1,674,245		$	21,860,370
Class B		6,276			74,756			12,743			166,321
Class C		211,507			2,521,066			386,528			5,049,783
Class S		1,367,049			16,299,729			2,638,167			34,478,200
Institutional Class		548,368			6,536,700			813,519			10,635,676
				$	35,514,659					$	72,190,350
Shares redeemed
Class A		(14,509,332	)	$	(174,713,484	)		(13,880,941	)	$	(181,608,426	)
Class B		(127,703	)		(1,529,332	)		(159,584	)		(2,084,636	)
Class C		(3,855,234	)		(46,329,597	)		(3,234,807	)		(42,287,044	)
Class S		(25,109,130	)		(306,296,431	)		(20,011,449	)		(261,842,971	)
Institutional Class		(6,346,116	)		(76,235,186	)		(4,509,602	)		(59,074,824	)
				$	(605,104,030	)				$	(546,897,901	)
Net increase (decrease)
Class A		(10,086,628	)	$	(121,596,046	)		3,171,314		$	41,209,341
Class B		(120,648	)		(1,445,141	)		(130,254	)		(1,699,553	)
Class C		(3,072,000	)		(36,937,926	)		909,892			11,795,477
Class S		(15,197,899	)		(187,240,707	)		7,071,757			92,625,028
Institutional Class		(1,111,767	)		(13,290,860	)		5,999,407			78,628,676
				$	(360,510,680	)				$	222,558,969

Information About Your Fund's Expenses

As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include sales charges (loads) and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, the Fund limited these expenses; had it not done so, expenses would have been higher. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (June 1, 2013 to November 30, 2013).

The tables illustrate your Fund's expenses in two ways:

—Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.

— Hypothetical 5% Fund Return. This helps you to compare your Fund's ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.

Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. Subject to certain exceptions, an account maintenance fee of $20.00 assessed once per calendar year for Classes A, B, C and S shares may apply for accounts with balances less than $10,000. This fee is not included in these tables. If it was, the estimate of expenses paid for Classes A, B, C and S shares during the period would be higher, and account value during the period would be lower, by this amount.

Expenses and Value of a $1,000 Investment for the six months ended November 30, 2013 (Unaudited)
Actual Fund Return	Class A		Class B		Class C		Class S		Institutional Class
Beginning Account Value 6/1/13	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00
Ending Account Value 11/30/13	$	939.90	$	936.30	$	935.60	$	941.20	$	940.50
Expenses Paid per $1,000*	$	4.62	$	8.25	$	8.25	$	3.41	$	3.41
Hypothetical 5% Fund Return	Class A		Class B		Class C		Class S		Institutional Class
Beginning Account Value 6/1/13	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00
Ending Account Value 11/30/13	$	1,020.31	$	1,016.55	$	1,016.55	$	1,021.56	$	1,021.56
Expenses Paid per $1,000*	$	4.81	$	8.59	$	8.59	$	3.55	$	3.55

* Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 183 (the number of days in the most recent six-month period), then divided by 365.

Annualized Expense Ratios	Class A	Class B	Class C	Class S	Institutional Class
DWS Strategic High Yield Tax-Free Fund†	.95%	1.70%	1.70%	.70%	.70%

† Includes interest expense and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities of 0.05% for each class.

For more information, please refer to the Fund's prospectus.

For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to http://apps.finra.org/fundanalyzer/1/fa.aspx.

Advisory Agreement Board Considerations and Fee Evaluation

The Board of Trustees approved the renewal of DWS Strategic High Yield Tax-Free Fund's investment management agreement (the "Agreement") with Deutsche Investment Management Americas Inc. ("DIMA") in September 2013.

In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:

— In September 2013, all of the Fund's Trustees were independent of DIMA and its affiliates.

— The Trustees met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board's Contract Committee, in coordination with the Board's Fixed Income and Asset Allocation Oversight Committee, reviewed comprehensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund's performance, fees and expenses, and profitability compiled by a fee consultant retained by the Fund's Independent Trustees (the "Fee Consultant"). The Board also received extensive information throughout the year regarding performance of the Fund.

— The Independent Trustees regularly meet privately with their independent counsel to discuss contract review and other matters. In addition, the Independent Trustees were also advised by the Fee Consultant in the course of their review of the Fund's contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations.

— In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund's Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements.

— Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee's findings and recommendations.

In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the Fund, and that the Agreement was approved by the Fund's shareholders. DIMA is part of Deutsche Bank AG, a major global banking institution that is engaged in a wide range of financial services. The Board believes that there are advantages to being part of a global asset management business that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts with research capabilities in many countries throughout the world.

As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund's performance. In many cases, this led to a negotiation with DIMA of lower expense caps as part of the 2012 and 2013 contract review processes than had previously been in place. As part of these negotiations, the Board indicated that it would consider relaxing these new lower caps in future years following sustained improvements in performance, among other considerations.

In June 2012, Deutsche Bank AG ("DB"), DIMA's parent company, announced that DB would combine its Asset Management (of which DIMA was a part) and Wealth Management divisions. DB has advised the Independent Trustees that the U.S. asset management business is a critical and integral part of DB, and that it has, and will continue to, reinvest a significant portion of the substantial savings it expects to realize by combining its Asset Management and Wealth Management divisions into the new Asset and Wealth Management ("AWM") division, including ongoing enhancements to its investment capabilities. DB also has confirmed its commitment to maintaining strong legal and compliance groups within the AWM division.

While shareholders may focus primarily on fund performance and fees, the Fund's Board considers these and many other factors, including the quality and integrity of DIMA's personnel and such other issues as back-office operations, fund valuations, and compliance policies and procedures.

Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel, the resources made available to such personnel, the ability of DIMA to attract and retain high-quality personnel, and the organizational depth and stability of DIMA. The Board reviewed the Fund's performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including market indices and a peer universe compiled by the Fee Consultant using information supplied by Morningstar Direct ("Morningstar"), an independent fund data service. The Board also noted that it has put into place a process of identifying "Focus Funds" (e.g., funds performing poorly relative to their benchmark or a peer universe compiled by an independent fund data service), and receives more frequent reporting and information from DIMA regarding such funds, along with DIMA's remedial plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that for the one-, three- and five-year periods ended December 31, 2012, the Fund's performance (Class A shares) was in the 3rd quartile, 4th quartile and 2nd quartile, respectively, of the applicable Morningstar universe (the 1st quartile being the best performers and the 4th quartile being the worst performers). The Board also observed that the Fund has outperformed its benchmark in the one- and three-year periods and has underperformed its benchmark in the five-year period ended December 31, 2012. The Board noted the disappointing investment performance of the Fund in recent periods and continued to discuss with senior management of DIMA the factors contributing to such underperformance and actions being taken to improve performance. The Board recognized the efforts made by DIMA in recent years to enhance its investment platform and improve long-term performance across the DWS fund complex.

Fees and Expenses. The Board considered the Fund's investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Lipper Inc. ("Lipper") and the Fee Consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund's administrative services agreement, were higher than the median (4th quartile) of the applicable Lipper peer group (based on Lipper data provided as of December 31, 2012). The Board noted that the Fund's Class A shares total (net) operating expenses (excluding 12b-1 fees) were expected to be lower than the median (2nd quartile) of the applicable Lipper expense universe (based on Lipper data provided as of December 31, 2012, and analyzing Lipper expense universe Class A (net) expenses less any applicable 12b-1 fees) ("Lipper Universe Expenses"). The Board also reviewed data comparing each share class's total (net) operating expenses to the applicable Lipper Universe Expenses. The Board considered the Fund's management fee rate as compared to fees charged by DIMA to comparable funds and considered differences between the Fund and the comparable funds. The Board also considered how the Fund's total (net) operating expenses compared to the total (net) operating expenses of a more customized peer group selected by Lipper (based on such factors as asset size). The Board also noted that the expense limitations agreed to by DIMA helped to ensure that the Fund's total (net) operating expenses would remain competitive. The Board noted that, in connection with the 2013 contract renewal process, DIMA agreed to implement a new management fee breakpoint.

The information considered by the Board as part of its review of management fees included information regarding fees charged by DIMA and its affiliates to similar institutional accounts and to similar funds offered primarily to European investors ("DWS Europe funds"), in each case as applicable. The Board observed that advisory fee rates for institutional accounts generally were lower than the management fees charged by similarly managed DWS U.S. mutual funds ("DWS Funds"), but also took note of the differences in services provided to DWS Funds as compared to institutional accounts. In the case of DWS Europe funds, the Board observed that fee rates for DWS Europe funds generally were higher than for similarly managed DWS Funds, but noted that differences in the types of services provided to DWS Funds relative to DWS Europe funds made it difficult to compare such fees.

On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.

Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs and pre-tax profits realized by DIMA from advising the DWS Funds, as well as estimates of the pre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DWS and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA's methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that the pre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed information regarding the profitability of certain similar investment management firms. The Board noted that while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates' overall profitability with respect to the DWS fund complex (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of many comparable firms for which such data was available.

Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund's management fee schedule includes fee breakpoints. The Board concluded that the Fund's fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.

Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities, along with the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board concluded that management fees were reasonable in light of these fallout benefits.

Compliance. The Board considered the significant attention and resources dedicated by DIMA to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience and seniority of both DIMA's chief compliance officer and the Fund's chief compliance officer; (ii) the large number of DIMA compliance personnel; and (iii) the substantial commitment of resources by DIMA and its affiliates to compliance matters.

Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and their independent counsel present. It is possible that individual Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.

Account Management Resources


For More Information		The automated telephone system allows you to access personalized account information and obtain information on other DWS funds using either your voice or your telephone keypad. Certain account types within Classes A, B, C and S also have the ability to purchase, exchange or redeem shares using this system. For more information, contact your financial advisor. You may also access our automated telephone system or speak with a Shareholder Service representative by calling: (800) 728-3337
Web Site		dws-investments.com View your account transactions and balances, trade shares, monitor your asset allocation, subscribe to fund and account updates by e-mail, and change your address, 24 hours a day. Obtain prospectuses and applications, blank forms, interactive worksheets, news about DWS funds, retirement planning information, and more.
Written Correspondence		Deutsche Asset & Wealth Management PO Box 219151 Kansas City, MO 64121-9151
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 12-month period ended June 30 are available on our Web site — dws-investments.com (click on "proxy voting"at the bottom of the page) — 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 filed with the SEC on Form N-Q. This form will be available on the SEC's Web site at sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330. The fund's portfolio holdings are also posted on dws-investments.com from time to time. Please see the fund's current prospectus for more information.
Principal Underwriter		If you have questions, comments or complaints, contact: DWS Investments Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 (800) 621-1148
Investment Management		Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is part of Deutsche Asset & Wealth Management, is the investment advisor for the fund. DIMA and its predecessors have more than 80 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 Deutsche Bank AG. Deutsche Bank AG is a major global banking institution engaged in a wide variety of financial services, including investment management, retail, private and commercial banking, investment banking and insurance. Deutsche Asset & Wealth Management is the retail brand name in the U.S. for the wealth management and asset management activities of Deutsche Bank AG and DIMA. Deutsche Asset & Wealth Management is committed to delivering the investing expertise, insight and resources of this global investment platform to American investors.

	Class A	Class B	Class C	Class S	Institutional Class
Nasdaq Symbol	NOTAX	NOTBX	NOTCX	SHYTX	NOTIX
CUSIP Number	23337W-105	23337W-204	23337W-303	23337W-501	23337W-600
Fund Number	152	252	352	2008	512

Privacy Statement

FACTS	What Does Deutsche Asset & Wealth Management 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 Deutsche Asset & Wealth Management chooses to share and whether you can limit this sharing.
Reasons we can share your personal information		Does Deutsche Asset & Wealth Management 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


Who we are
Who is providing this notice?	DWS Investments Distributors, Inc.; Deutsche Investment Management Americas Inc.; DeAM Investor Services, Inc.; DWS Trust Company; the DWS Funds
What we do
How does Deutsche Asset & Wealth Management 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 and secured files and buildings.
How does Deutsche Asset & Wealth Management 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 and DB Alex Brown.
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. Deutsche Asset & Wealth Management does not jointly market.
		Rev. 09/2013

Notes

Date of fiscal year end:	5/31

Date of reporting period:	11/30/2013


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

	Not applicable

ITEM 9.	PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

	Not applicable

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 Kenneth C. Froewiss, Independent Chairman, DWS Mutual Funds, P.O. Box 78, Short Hills, NJ 07078.

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.	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.

Registrant:	DWS Strategic High Yield Tax-Free Fund, a series of DWS Municipal Trust


By:	/s/Brian E. Binder Brian E. Binder President

Date:	January 29, 2014

By:	/s/Brian E. Binder Brian E. Binder President

Date:	January 29, 2014



By:	/s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer

Date:	January 29, 2014

January 29, 2014	/s/Brian E. Binder
	Brian E. Binder
	President

January 29, 2014	/s/Paul Schubert
	Paul Schubert
	Chief Financial Officer and Treasurer

ITEM 1.	REPORT TO STOCKHOLDERS