ar103114stmb.htm

October 31, 2014

Annual Report

to Shareholders

Deutsche Short-Term Municipal Bond Fund

(formerly DWS Short-Term Municipal Bond Fund)

Contents

3 Letter to Shareholders

4 Portfolio Management Review

11 Performance Summary

14 Investment Portfolio

28 Statement of Assets and Liabilities

30 Statement of Operations

31 Statement of Changes in Net Assets

32 Financial Highlights

37 Notes to Financial Statements

47 Report of Independent Registered Public Accounting Firm

48 Information About Your Fund's Expenses

49 Tax Information

50 Advisory Agreement Board Considerations and Fee Evaluation

55 Board Members and Officers

60 Account Management Resources

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, credit, liquidity and market risks to varying degrees. 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. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. 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 DeAWM 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:

I am very pleased to tell you that the DWS funds have been renamed Deutsche funds, aligning more closely with the Deutsche Asset & Wealth Management brand. We are proud to adopt the Deutsche name — a brand that fully represents the global access, discipline and intelligence that support all of our products and services.

Deutsche Asset & Wealth Management combines the asset management and wealth management divisions of Deutsche Bank to deliver a comprehensive suite of active, passive and alternative investment capabilities. Your investment in the Deutsche funds means you have access to the thought leadership and resources of one of the world’s largest and most influential financial institutions.

In conjunction with your fund’s name change, please note that the Deutsche funds’ Web address has changed as well. The former dws-investments.com is now deutschefunds.com.

In addition, key service providers have been renamed as follows:

Former Name	New name, effective August 11, 2014
DWS Investments Distributors, Inc.	DeAWM Distributors, Inc.
DWS Trust Company	DeAWM Trust Company
DWS Investments Service Company	DeAWM Service Company

These changes have no effect on the day-to-day management of your investment, and there is no action required on your part. You will continue to experience the benefits that come from our decades of experience, in-depth research and worldwide network of investment professionals.

Thanks for your continued support. We appreciate your trust and the opportunity to put our capabilities to work for you.

Best regards,

Brian Binder

President, Deutsche Funds

Portfolio Management Review (Unaudited)

Overview of Market and Fund Performance

All performance information below is historical and does not guarantee future results. Returns shown are for Class A shares, unadjusted for sales charges. 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 deutschefunds.com for the most recent month-end performance of all share classes. Fund performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had. Please refer to pages 11 through 13 for more complete performance information.

Investment Process

The fund invests in a wide variety of municipal bonds. These include general obligation bonds, for which payments of principal and interest are secured by the full faith and credit of the issuer and usually supported by the issuer's taxing power. In addition, securities held may include revenue bonds, for which principal and interest are secured by revenues from tolls, rents or other fees gained from the issuing facility. The fund's management team seeks to hold municipal bonds that appear to offer the best opportunity to meet the fund's objective of earning tax-exempt income. A number of factors influence the performance of municipal bonds. These include supply and demand for the asset class, the direction of overall interest rates, and the perceived credit risk associated with an individual municipal issuer. In selecting securities, the managers typically weigh a number of factors from the impact of the economic outlook and potential interest rate movements to characteristics of specific securities, such as coupon, maturity date and call date, credit condition and outlook, liquidity, and changes in supply and demand within the municipal bond market. In addition, supply and demand factors may favor one segment of the municipal market over another.

Deutsche Short-Term Municipal Bond Fund posted a total return for the 12 months ended October 31, 2014 of 1.37%. This compared to a return of 0.65% for the unmanaged Barclays 1-Year General Obligation Bond Index and 1.58% for the unmanaged Barclays 3-Year (2–4) Municipal Bond Index.

As 2013 drew to a close, positive economic data and optimism over budget talks led interest rates to trend upward, and the consensus entering the new year was that the risks were mostly on the upside with respect to the direction of rates.

However, rates would in fact drift down in early 2014 as slowing data coming from China raised concerns over the impact on the global economy. Rates would subsequently trade within a fairly narrow band for some period as markets attempted to evaluate the extent to which the harsh winter explained a softening in U.S. economic data and kept a wary eye on developments in Ukraine. For the most part, credit sentiment remained sanguine as the consensus was that the economy would rebound after the winter lull and indications from the U.S. Federal Reserve Board (the Fed) were that it was in no rush to raise short-term rates subsequent to ending its purchases of longer-term bonds.

As the period progressed, there was ongoing volatility, largely related to geopolitical concerns around Ukraine and Israel. The Fed continued to backstop conditions by emphasizing employment-related considerations over any need to curtail potential inflation risk. The latter part of the period saw increasing fears of deflation globally, in particular with respect to Europe, but also Japan.

In addition to a favorable interest rate backdrop, municipal bonds benefited from favorable supply/demand dynamics for much of the period. Net municipal issuance was generally negative, while net flows into mutual funds reversed the earlier trend and turned positive as 2014 progressed. The period also saw meaningful interest from both retail buyers of individual bonds and, early in 2014, institutional investors traditionally more focused on taxable issues.

For the full period, performance was generally strongest for longer-maturity municipals, as yields declined farther out on the curve. For the 12 months ended October 31, 2014, yields on two-year municipal issues rose 2 basis points, from 0.34% to 0.36%, while bonds with 30-year maturities experienced a yield decline of 103 basis points, from 4.04% to 3.01%, resulting in a yield curve flattening of 105 basis points between 2 and 30 years. (100 basis points equals one percentage point. See the graph below for municipal bond yield changes from the beginning to the end of the period.)

Positive and Negative Contributors to Performance

Given a relatively steep yield curve entering the period, the fund had implemented a somewhat barbelled positioning, balancing very short-term holdings with positions in bonds with maturities in the 5-to-10-year range. This allowed the fund to maintain an overall effective maturity of less than three years while gaining exposure to the more attractive yields on longer-term issues. As rates fell over the period, the fund's exposure to longer-term issues with greater interest rate sensitivity added to return. This was partially offset by the relative stability of the fund's short-term holdings as part of the barbell stance.

Municipal Bond Yield Curve (as of 10/31/14 and 10/31/13)

Source: Thompson Reuters as of 10/31/14.

Chart is for illustrative purposes only and does not represent any Deutsche AWM product.

The fund's significant exposure to A-rated issues in the five-to-seven-year maturity range boosted performance, as these issues benefited not only from both spread tightening, but also declining market interest rate levels. With respect to sectors, holdings of airport, highway revenue and health care bonds helped returns, as investors were attracted to their yield profile relative to other similarly rated issues.

"Municipal bonds benefited from favorable supply/demand dynamics for much of the period."

Outlook and Positioning

Municipal yields are quite low by historical standards and relatively fully valued vs. U.S. Treasuries, especially in the short part of the yield curve. At the end of October 2014, the two-year municipal yield of 0.36% was 72.0% of the 0.50% yield on the comparable maturity U.S. Treasury vs. 113.3% 12 months earlier, while the five-year municipal yield of 1.12% was 69.6% of the 1.61% yield on the comparable maturity U.S. Treasury vs. 80.3% 12 months earlier. While the municipal yield curve has flattened considerably in recent months, we believe there is still significant incremental income to be gained from going out on the curve. We are looking to add exposure to bonds with maturities ranging from seven to nine years, while balancing this exposure with bonds maturing in two years or less. The fund has a substantial position in floating rate issues that should benefit if rates trend upward. We currently see more attractive valuation opportunities among bonds in the AA range vs. A issues.

Municipal credit sentiment appears to have stabilized, as state and local government finances have continued to benefit from improving revenues and headlines around isolated bankruptcy scenarios fade. Nonetheless, there remain exceptions to this generally benign environment, and we believe thorough research into municipal sectors and individual issues continues to be critical. There continue to be uncertainties with respect to the national economic backdrop, and we will closely monitor the implications for Fed policy with respect to short-term interest rates.

Portfolio Management Team

Philip G. Condon, Managing Director

Co-Lead Portfolio Manager of the fund. Began managing the fund in 2003.

— Joined Deutsche Asset & Wealth Management in 1983.

— Vice Chairman of Deutsche Asset & Wealth Management, Americas; formerly, Head of Municipal Bonds.

— BA and MBA, University of Massachusetts at Amherst.

Ashton P. Goodfield, CFA, Managing Director

Co-Lead Portfolio Manager of the fund. Began managing the fund in 2003.

— Joined Deutsche Asset & Wealth Management in 1986.

— Co-Head of Municipal Bonds.

— BA, Duke University.

Matthew J. Caggiano, CFA, Managing Director

Co-Lead Portfolio Manager of the fund. Began managing the fund in 2014.

— Joined Deutsche Asset & Wealth Management in 1989.

— BS, Pennsylvania State University; MS, Boston College.

Effective October 1, 2014, Peter Aloisi was added as a portfolio manager of the fund, joining the current portfolio management team.

Peter Aloisi, CFA, Assistant Vice President

Portfolio Manager of the fund. Began managing the fund in 2014.

— Joined Deutsche Asset & Wealth Management in 2010 with five years of industry experience; previously, served as an Associate at Banc of America Securities.

— Municipal Trader: Boston.

— BA and MBA, Boston College.

The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team's views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.

Terms to Know

The Barclays 1-Year General Obligation Bond Index tracks the performance of investment-grade tax-exempt bonds with maturities of less than one year.

The Barclays 3-Year (2–4) Municipal Bond Index is a market-value-weighted index which covers those issues with remaining maturities of two to four years within the U.S. investment-grade tax-exempt bond market.

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

The yield curve is a graph with a left-to-right line that shows how high or low yields are, from the shortest to the longest maturities. Typically (and when the yield curve is characterized as "steep," this is especially true), the line rises from left to right as investors who are willing to tie up their money for a longer period are rewarded with higher yields.

Credit quality measures a bond issuer’s ability to repay interest and principal in a timely manner. Rating agencies assign letter designations such as AAA, AA and so forth. The lower the rating the higher the probability of default. Credit quality does not remove market risk and is subject to change.

Spread sectors trade at a yield advantage or "spread" relative to comparable maturity U.S. Treasuries. The yield spread for an individual security may tighten or widen depending on shifts in the outlook for timely repayment of principal and interest.

Performance Summary October 31, 2014 (Unaudited)

Class A	1-Year	5-Year	10-Year
Average Annual Total Returns as of 10/31/14
Unadjusted for Sales Charge	1.37%	1.57%	2.08%
Adjusted for the Maximum Sales Charge (max 2.00% load)	–0.66%	1.16%	1.88%
Barclays 1-Year G.O. Bond Index†	0.65%	1.02%	2.19%
Barclays 3-Year (2–4) Municipal Bond Index††	1.58%	2.19%	2.99%
Class B	1-Year	5-Year	10-Year
Average Annual Total Returns as of 10/31/14
Unadjusted for Sales Charge	0.61%	0.81%	1.31%
Adjusted for the Maximum Sales Charge (max 4.00% CDSC)	–2.39%	0.61%	1.31%
Barclays 1-Year G.O. Bond Index†	0.65%	1.02%	2.19%
Barclays 3-Year (2–4) Municipal Bond Index††	1.58%	2.19%	2.99%
Class C	1-Year	5-Year	10-Year
Average Annual Total Returns as of 10/31/14
Unadjusted for Sales Charge	0.61%	0.83%	1.31%
Adjusted for the Maximum Sales Charge (max 1.00% CDSC)	0.61%	0.83%	1.31%
Barclays 1-Year G.O. Bond Index†	0.65%	1.02%	2.19%
Barclays 3-Year (2–4) Municipal Bond Index††	1.58%	2.19%	2.99%
Class S	1-Year	5-Year	10-Year
Average Annual Total Returns as of 10/31/14
No Sales Charges	1.52%	1.72%	2.25%
Barclays 1-Year G.O. Bond Index†	0.65%	1.02%	2.19%
Barclays 3-Year (2–4) Municipal Bond Index††	1.58%	2.19%	2.99%
Institutional Class	1-Year	5-Year	10-Year
Average Annual Total Returns as of10/31/14
No Sales Charges	1.63%	1.82%	2.34%
Barclays 1-Year G.O. Bond Index†	0.65%	1.02%	2.19%
Barclays 3-Year (2–4) Municipal Bond Index††	1.58%	2.19%	2.99%

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 deutschefunds.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 February 1, 2014 are 0.90%, 1.67%, 1.66%, 0.70% and 0.59% 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 tax and the alternative minimum tax.

Returns shown for Class S shares for the period prior to its inception on February 28, 2005 are derived from the historical performance of Institutional Class shares of Deutsche Short-Term Municipal Bond Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of the class. Any difference in expenses will affect performance.

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

Yearly periods ended October 31

The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 2.00%. This results in a net initial investment of $9,800.

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 1-Year General Obligation Bond Index tracks the performance of investment-grade tax-exempt bonds with maturities of less than one year.

†† The Barclays 3-Year (2–4) Municipal Bond Index is a market-value-weighted index which covers those issues with remaining maturities of two to four years within the US investment-grade tax-exempt bond market.

	Class A			Class B			Class C			Class S			Institutional Class
Net Asset Value
10/31/14	$	10.26		$	10.26		$	10.26		$	10.25		$	10.26
10/31/13	$	10.21		$	10.21		$	10.21		$	10.20		$	10.21
Distribution Information as of 10/31/14
Income Dividends, Twelve Months	$	.09		$	.01		$	.01		$	.10		$	.12
October Income Dividend	$	.0066		$	.0001		$	.0001		$	.0080		$	.0088
SEC 30-day Yield‡‡		.00	%		(.74	)%		(.74	)%		.15	%		.25	%
Tax Equivalent Yield‡‡		N/A			N/A			N/A			.27	%		.44	%
Current Annualized Distribution Rate‡‡		.77	%		.01	%		.01	%		.94	%		1.03	%

‡‡ The SEC yield is net investment income per share earned over the month ended October 31, 2014, 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 yields would have been –0.17%, –0.80%, –0.93%, –0.02% and 0.11% for Class 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 income tax rate of 43.4%. Current annualized distribution rate is the latest monthly dividend shown as an annualized percentage of net asset value on October 31, 2014. Distribution rate simply measures the level of dividends and is not a complete measure of performance. The current annualized distribution rates would have been 0.60%, 0.00%, 0.00%, 0.77% and 0.89% for Class 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.

Investment Portfolio as of October 31, 2014

	Principal Amount ($)		Value ($)

Municipal Bonds and Notes 101.2%
Alaska 0.3%
Alaska, State Housing Finance Corp., Home Mortgage, Series A, AMT, 5.0%, 6/1/2036, INS: NATL		190,000		193,726
Alaska, State Housing Finance Corp., Mortgage Revenue, Series A, 4.0%, 6/1/2040		1,110,000		1,183,426
				1,377,152
Arizona 2.7%
Arizona, Health Facilities Authority Revenue, Banner Health:
Series A, 5.0%, 1/1/2019		2,000,000		2,182,100
Series D, 5.5%, 1/1/2019		5,000,000		5,690,300
Arizona, State School Facilities Board, Certificates of Participation, Series A-2, 4.0%, 9/1/2015		2,750,000		2,837,533
Phoenix, AZ, Civic Improvement Corp., Transportation Excise Tax Revenue, 5.0%, 7/1/2015		2,000,000		2,065,080
Pima County, AZ, Regional Transportation Excise Tax Revenue, Regional Transportation Fund, 4.0%, 6/1/2016		1,290,000		1,364,523
				14,139,536
California 10.0%
California, Health Facilities Financing Authority Revenue, Catholic Healthcare, Series C, 0.06%**, 7/1/2020, INS: NATL, LOC: JPMorgan Chase Bank NA		5,490,000		5,490,000
California, State Department of Water Resources Power Supply Revenue, Series G-4, 5.0%, 5/1/2016		2,500,000		2,677,350
California, State Department of Water Resources, Center Valley Project, Water Systems, Series AT, 0.34%*, Mandatory Put 12/1/2017 @ 100, 12/1/2035 (a)		5,715,000		5,715,915
California, State General Obligation:
5.0%, 4/1/2021		6,000,000		7,211,100
5.25%, 4/1/2022		1,615,000		1,895,913
California, State Municipal Finance Authority, Solid Waste Revenue, Republic Services, Inc., 0.3%**, Mandatory Put 1/2/2015 @ 100, 9/1/2021		635,000		635,025
California, State Pollution Control Financing Authority, Solid Waste Disposal Revenue, Republic Services, Inc., Series A, AMT, 0.45%**, Mandatory Put 2/2/2015 @ 100, 8/1/2023 (a)		2,000,000		2,000,580
California, State Public Works Board Lease Revenue, Various Capital Project, Series I, 5.0%, 11/1/2021		1,000,000		1,203,840
California, State Public Works Board, Lease Revenue, Judicial Council Projects, Series D, 5.0%, 12/1/2020		1,000,000		1,195,670
Los Angeles, CA, Department of Water & Power, Waterworks Revenue, Series R-12322, 144A, 0.09%**, 7/1/2015, INS: AGMC, AMBAC, LIQ: Citibank NA		4,000,000		4,000,000
Orange County, CA, Water District, Certificates of Participation, Series A, 0.05%**, 8/1/2042, LOC: Citibank NA		3,500,000		3,500,000
Port of Oakland, CA, Series O, AMT, 5.0%, 5/1/2020		3,000,000		3,528,420
San Francisco, CA, City & County Airports Commission, International Airport Revenue, Governmental Purpose:
Series C, 5.0%, 5/1/2019		2,300,000		2,691,161
Series C, 5.0%, 5/1/2020		2,000,000		2,377,760
University of California, State Revenues, Series R-12236, 144A, 0.08%**, 10/1/2015, INS: AGMC, FGIC, LIQ: Citibank NA		7,850,000		7,850,000
				51,972,734
Colorado 0.4%
Colorado, State Building Excellent Schools Today, Certificates of Participation, Series G, 5.0%, 3/15/2020		1,000,000		1,183,070
Denver City & County, CO, Airport Systems Revenue, Series A, AMT, 4.0%, 11/15/2015		250,000		259,987
Denver, CO, City & County Airport Revenue, Series A, AMT, 4.0%, 11/15/2014		485,000		485,752
University of Colorado, Hospital Authority Revenue, Series A, 4.0%, 11/15/2014		275,000		275,418
				2,204,227
Delaware 0.0%
Delaware, State Housing Authority Revenue, Single Family Mortgage, Series D, AMT, 5.875%, 1/1/2038		195,000		196,786
District of Columbia 0.4%
Metropolitan Washington, DC, Airport Authority System Revenue, Series A, AMT, 5.0%, 10/1/2016		2,000,000		2,171,840
Florida 5.6%
Broward County, FL, Airport Systems Revenue:
Series P-1, AMT, 5.0%, 10/1/2020		2,000,000		2,341,700
Series P-1, AMT, 5.0%, 10/1/2021		2,640,000		3,101,182
Florida, Citizens Property Insurance Corp.:
Series A-1, 5.0%, 6/1/2020		2,725,000		3,191,847
Series A-1, 5.0%, 6/1/2021		1,910,000		2,258,690
Florida, Housing Finance Corp. Revenue, Homeowner Mortgage Special Program, Series A, 5.0%, 7/1/2028		780,000		834,101
Jacksonville, FL, Sales Tax Revenue, Better Jacksonville, 5.0%, 10/1/2021		1,165,000		1,395,728
Lee County, FL, Airport Revenue, Series A, AMT, 5.5%, 10/1/2023		1,250,000		1,489,862
Miami-Dade County, FL, Aviation Revenue, AMT, 5.0%, 10/1/2022		1,000,000		1,176,180
Palm Beach County, FL, Community Foundation, Palm Beach Project Revenue, 0.07%**, 3/1/2034, LOC: Northern Trust Co.		4,750,000		4,750,000
South Miami, FL, Health Facilities Authority, Hospital Revenue, Baptist Health South Florida Group, 5.0%, 8/15/2021		2,500,000		2,781,850
Tampa, FL, Solid Waste Systems Revenue, AMT, 5.0%, 10/1/2019, INS: AGMC		5,000,000		5,783,900
				29,105,040
Georgia 3.3%
Athens-Clarke County, GA, Unified Government, 3.0%, 12/1/2014		1,300,000		1,303,185
Atlanta, GA, Airport Revenue, Series B, AMT, 5.0%, 1/1/2022		1,000,000		1,162,180
Atlanta, GA, Metropolitan Rapid Transit Authority, Sales Tax Revenue, Second Indenture, Series B, 0.33%*, Mandatory Put 7/1/2017 @ 100, 7/1/2025		1,715,000		1,715,172
Atlanta, GA, Water & Wastewater Revenue, Series B, 5.0%, 11/1/2021		2,085,000		2,510,507
DeKalb County, GA, Water & Sewer Revenue, Series A, 5.0%, 10/1/2020		500,000		594,350
Gainesville & Hall County, GA, Hospital Authority Revenue, Anticipation Certificates, Northeast Georgia Healthcare:
Series A, 5.0%, 2/15/2018		2,000,000		2,216,140
Series A, 5.0%, 2/15/2019		1,500,000		1,690,620
Georgia, Main Street Natural Gas, Inc., Gas Revenue, Series A, 0.05%**, 8/1/2040, SPA: Royal Bank of Canada		3,970,000		3,970,000
Georgia, Municipal Electric Authority, Project One, Series A, 5.0%, 1/1/2021		1,580,000		1,874,322
				17,036,476
Idaho 0.0%
Idaho, Housing Agency, Single Family Mortgage:
Series H-2, AMT, 5.1%, 7/1/2020		25,000		25,048
Class III, AMT, 5.1%, 7/1/2023		105,000		105,157
Series E, AMT, 5.95%, 7/1/2020		20,000		20,053
				150,258
Illinois 6.2%
Chicago, IL, Board of Education, Series A, 5.25%, 12/1/2018, INS: NATL		1,830,000		1,837,430
Chicago, IL, O'Hare International Airport Revenue:
Series A, 5.0%, 1/1/2015, INS: AGMC		4,500,000		4,536,630
Series D, AMT, 5.25%, 1/1/2019		1,000,000		1,148,500
Chicago, IL, Park District, Series B, 4.0%, 1/1/2015		1,780,000		1,791,428
Cook County, IL, General Obligation, Series A, 5.0%, 11/15/2015		4,000,000		4,193,040
Illinois, Metropolitan Pier & Exposition Authority Revenue, McCormick Place Project, Series B, 5.0%, 12/15/2020		1,630,000		1,929,284
Illinois, Railsplitter Tobacco Settlement Authority Revenue, 5.25%, 6/1/2020		2,000,000		2,350,980
Illinois, State Finance Authority Revenue, University of Chicago:
Series B, ETM, Prerefunded, 5.0%, 7/1/2017		345,000		385,144
Series B, 5.0%, 7/1/2017		4,655,000		5,195,353
Illinois, State General Obligation:
4.0%, 7/1/2015		2,500,000		2,557,725
Series A, 5.0%, 4/1/2015		1,000,000		1,018,750
Illinois, State Unemployment Insurance Fund, Building Receipts Revenue, Series B, 5.0%, 12/15/2019		420,000		432,083
Lake County, IL, Forest Preserve District, Series A, 0.637%*, 12/15/2020		5,000,000		4,891,650
				32,267,997
Indiana 1.1%
Indiana, Finance Authority Health Systems Revenue, Sisters of St. Francis Health, Series C, 5.0%, 11/1/2014		2,000,000		2,000,000
Indiana, State Municipal Power Agency, Series A, 0.06%**, 1/1/2018, LOC: Citibank NA		3,890,000		3,890,000
				5,890,000
Iowa 0.2%
Iowa, State Finance Authority Revenue, State Revolving Fund, 3.0%, 8/1/2015		1,000,000		1,021,530
Kentucky 0.0%
Kentucky, Housing Corp. Revenue, Series G, AMT, 5.0%, 7/1/2030		100,000		100,336
Maine 0.4%
Maine, State Housing Authority Mortgage Revenue, Series A-1, AMT, 4.5%, 11/15/2028		2,105,000		2,213,281
Maryland 3.1%
Frederick County, MD, Public Facilities, Prerefunded 12/1/2015 @ 100, 5.0%, 12/1/2016		275,000		289,405
Maryland, State & Local Facilities, Series B, 5.0%, 3/15/2015		260,000		264,763
Maryland, State Department of Transportation & Conservation, 5.0%, 2/15/2018		5,000,000		5,695,600
Montgomery County, MD, Bond Anticipation Notes, Series B, 0.07%**, 6/1/2026, SPA: Wells Fargo Bank NA		10,060,000		10,060,000
				16,309,768
Massachusetts 4.7%
Massachusetts, State Consolidated Loan, Series D-2, 0.34%*, Mandatory Put 8/1/2017 @ 100, 8/1/2043		5,000,000		4,997,250
Massachusetts, State Department of Transportation, Metropolitan Highway System Revenue, Contract Assistance, Series A7, 0.06%**, 1/1/2029, SPA: JPMorgan Chase Bank NA		9,000,000		9,000,000
Massachusetts, State Development Finance Agency Revenue, Partners Healthcare System, Inc., Series M-3, 0.6%*, Mandatory Put 1/30/2018 @ 100, 7/1/2038		4,975,000		4,973,209
Massachusetts, State Water Resources Authority Revenue, Series A-2, 0.04%**, 8/1/2037, SPA: TD Bank NA		2,445,000		2,445,000
Woods Hole, MA, Marthas Vineyard & Nantucket Steamship Authority Revenue, Series B, 5.0%, 3/1/2017		3,300,000		3,352,239
				24,767,698
Michigan 2.0%
Michigan, State Building Authority Revenue, Facilities Program, Series I-A, 5.0%, 10/15/2015		1,500,000		1,568,070
Michigan, State Finance Authority Revenue, Local Government Loan Program, Series C, 3.0%, 11/1/2014		500,000		500,000
Michigan, State Finance Authority Revenue, Unemployment Obligation Assessment, Series B, 5.0%, 7/1/2021		4,175,000		4,771,315
Michigan, State Hospital Finance Authority Revenue, Ascension Health Senior Credit Group, Series B, 5.0%, 11/15/2020		3,000,000		3,494,670
				10,334,055
Minnesota 0.1%
Minnesota, State General Obligation, 5.0%, 8/1/2015		400,000		414,668
Mississippi 0.8%
Mississippi, Development Bank Special Obligation, Department of Corrections, Series D, 5.0%, 8/1/2021		3,695,000		4,320,453
Missouri 0.5%
Kansas City, MO, Airport Revenue, Series A, AMT, 5.0%, 9/1/2015		1,005,000		1,046,225
Missouri, State Housing Development Commission, Single Family Mortgage Revenue, Homeownership Loan Program:
Series D, 4.8%, 3/1/2040		700,000		742,091
Series C, AMT, 5.6%, 9/1/2035		360,000		371,272
Missouri, State Housing Development Commission, Single Family Mortgage Revenue, Special Homeownership Loan Program Market Bonds, Series E-1, 5.0%, 11/1/2027		350,000		375,235
				2,534,823
Nebraska 0.8%
Nebraska, State Investment Finance Authority, Single Family Housing Revenue:
Series A, 2.5%, 9/1/2034		1,390,000		1,440,346
Series E, 3.0%, 3/1/2043		520,000		541,575
Series C, 4.5%, 9/1/2043		2,230,000		2,373,835
				4,355,756
Nevada 1.4%
Clark County, NV, Airport System Revenue, Series C-1, AMT, 2.5%, 7/1/2015		4,650,000		4,722,307
Nevada, State Unemployment Compensation Fund, Special Revenue, 4.0%, 12/1/2015		2,285,000		2,380,262
				7,102,569
New Jersey 1.9%
New Jersey, State Building Authority, Series A, 5.0%, 6/15/2015		1,760,000		1,810,811
New Jersey, State Economic Development Authority Revenue, School Facilities Construction, Series W, ETM, 5.0%, 3/1/2015		365,000		370,946
New Jersey, State Transportation Trust Fund Authority, Transportation Systems:
Series B, 5.0%, 6/15/2020		2,000,000		2,287,600
Series A, 5.25%, 12/15/2014, INS: NATL		1,460,000		1,469,023
New Jersey, State Turnpike Authority Revenue, Series B-2, 0.522%*, Mandatory Put 1/1/2017 @ 100, 1/1/2024		3,750,000		3,751,537
				9,689,917
New Mexico 1.1%
New Mexico, Mortgage Finance Authority, Single Family Mortgage, "I", Series D, 5.35%, 9/1/2040		545,000		582,469
New Mexico, State Severance Tax, Series A, 5.0%, 7/1/2015		305,000		314,946
University of New Mexico, Systems Improvement Revenues, 0.07%**, 6/1/2026, SPA: JPMorgan Chase Bank NA		4,710,000		4,710,000
				5,607,415
New York 20.5%
New York, Metropolitan Transportation Authority Revenue:
Series D-2B, 0.705%*, Mandatory Put 5/15/2018 @ 100, 11/1/2032, INS: AGMC		2,800,000		2,806,664
Series D, 4.0%, 11/15/2015		200,000		207,830
New York, Metropolitan Transportation Authority, Dedicated Tax Fund:
Series B-1, 0.04%**, 11/1/2022, LOC: State Street Bank & Trust Co.		1,900,000		1,900,000
Series A-1, 0.07%**, 11/1/2031, LOC: Royal Bank of Canada		6,955,000		6,955,000
Series A-2B, 0.63%*, Mandatory Put 11/1/2019 @ 100, 11/1/2031		4,000,000		3,999,440
Series B-2, 3.0%, 11/1/2014		2,000,000		2,000,000
New York, State Environmental Facilities Corp., State Clean Water & Drinking Revolving Funds, NYC Municipal Water Finance Project, Series A, 5.0%, 6/15/2015		500,000		515,345
New York, State Local Government Assistance Corp.:
Series 8V, 0.05%**, 4/1/2019, SPA: JPMorgan Chase Bank NA		4,500,000		4,500,000
Series 4V, 0.05%**, 4/1/2022, SPA: Bank of America NA		10,700,000		10,700,000
New York, State Thruway Authority, Series J, 5.0%, 1/1/2024		7,000,000		8,505,420
New York, State Thruway Authority General Revenue, Junior Indebtedness, Series A, 5.0%, 5/1/2019		3,845,000		4,453,087
New York, State Thruway Authority, Second General Highway & Bridge Trust Fund:
Series A-1, 4.0%, 4/1/2015		300,000		304,842
Series A, 5.25%, 4/1/2015, INS: NATL		425,000		434,087
New York, State Urban Development Corp. Revenue:
Series A3C, 0.07%**, 3/15/2033, SPA: JPMorgan Chase Bank NA		3,090,000		3,090,000
Series A3A, 0.07%**, 3/15/2033, SPA: JPMorgan Chase Bank NA		1,730,000		1,730,000
New York, Tobacco Settlement Financing Corp. Revenue, Asset Backed, Series B, 5.0%, 6/1/2020		1,250,000		1,339,938
New York, Triborough Bridge & Tunnel Authority Revenues:
Series B-2C, 0.06%**, 1/1/2032, LOC: U.S. Bank NA		4,050,000		4,050,000
Series B-3, 0.06%**, 1/1/2033, LOC: U.S. Bank NA		2,325,000		2,325,000
Series ABCD-4, 0.4%*, 1/1/2018, INS: AGMC		1,835,000		1,838,266
New York, Utility Debt Securitization Authority, Restructuring Revenue, Series TE, 5.0%, 12/15/2016		7,000,000		7,041,650
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue:
Series B-2, 0.05%**, 6/15/2024, SPA: Royal Bank of Canada		2,260,000		2,260,000
Series DD-3B, 0.06%**, 6/15/2043, SPA: State Street Bank & Trust Co.		2,500,000		2,500,000
Series B-3, 0.06%**, 6/15/2045, SPA: State Street Bank & Trust Co.		4,000,000		4,000,000
Series B-4, 0.06%**, 6/15/2045, SPA: Northern Trust Co.		3,700,000		3,700,000
New York City, NY, Transitional Finance Authority Revenue, Series 3, 0.07%**, 11/1/2022, SPA: Royal Bank of Canada		1,725,000		1,725,000
New York City, NY, Transitional Finance Authority Revenue, Future Tax Secured:
Series C-5, 0.07%**, 8/1/2031, SPA: Bank of America NA		9,730,000		9,730,000
Series A, 5.0%, 11/1/2014		1,030,000		1,030,000
New York, NY, General Obligation:
Series L-4, 0.06%**, 4/1/2038, LOC: U.S. Bank NA		2,500,000		2,500,000
Series G-5, 0.06%**, 4/1/2042, SPA: Wells Fargo Bank NA		500,000		500,000
Series I, 0.07%**, 4/1/2036, LOC: Bank of America NA		1,800,000		1,800,000
Series J-8, 0.43%*, 8/1/2021		1,310,000		1,310,301
Series H-1, 5.0%, 3/1/2015		215,000		218,474
Series I, 5.0%, 8/1/2015		590,000		611,399
Series J, 5.0%, 8/1/2015		2,500,000		2,590,675
Port Authority of New York & New Jersey, Series 178, AMT, 4.0%, 12/1/2015		3,500,000		3,641,960
				106,814,378
North Carolina 2.2%
Charlotte, NC, Douglas Airport Revenue, Series C, 0.05%**, 7/1/2039, LOC: Wells Fargo Bank NA		2,335,000		2,335,000
Mecklenburg County, NC, Public Facilities Corp., Limited Obligation Bond, Annual Appropriation, 5.0%, 3/1/2015		5,000,000		5,081,950
North Carolina, Eastern Municipal Power Agency, Power Systems Revenue, Series B, 5.0%, 1/1/2017		1,500,000		1,640,310
North Carolina, State Grant Anticipation Revenue, 4.0%, Mandatory Put 3/1/2018 @ 100, 3/1/2023		2,000,000		2,163,820
Wake County, NC, General Obligation, Series D, 4.0%, 2/1/2015		260,000		262,553
				11,483,633
Ohio 2.8%
Columbus, OH, General Obligation, Series B, 5.0%, 2/15/2015		200,000		202,846
Ohio, American Municipal Power, Inc. Revenue, Fremont Energy Center Project, Series B, 5.0%, 2/15/2020		870,000		1,024,146
Ohio, State Common Schools, Series C, 4.0%, 9/15/2017		3,835,000		4,207,954
Ohio, State Higher Education, Series A, 5.0%, 8/1/2021		5,000,000		6,065,150
Ohio, State Higher Educational Facility Commission Revenue, Cleveland Clinic Health, Series A, 5.25%, 1/1/2019		2,500,000		2,824,900
Ohio, State Housing Finance Agency, Residential Mortgage Revenue, Mortgage-Backed Securities Program, Series E, 5.0%, 9/1/2039		480,000		513,816
				14,838,812
Oregon 0.5%
Oregon, State Housing & Community Services Department, Mortgage Revenue, Single Family Mortgage Program, Series B, AMT, 5.0%, 7/1/2030		2,570,000		2,774,752
Pennsylvania 2.6%
Pennsylvania, State Economic Development Financing Authority, Solid Waste Disposal, Republic Services, Inc., Series B, 0.3%**, Mandatory Put 1/2/2015 @ 100, 12/1/2030		1,365,000		1,365,109
Pennsylvania, State Economic Development Financing Authority, Solid Waste Disposal, Waste Management, Inc., AMT, 0.37%**, Mandatory Put 2/2/2015 @ 100, 8/1/2045 (a)		8,000,000		8,000,000
Pennsylvania, State Economic Development Financing Authority, Unemployment Compensation Revenue, Series B, 5.0%, 7/1/2021		785,000		883,808
Pennsylvania, State Turnpike Commission Revenue:
Series B-1, 0.93%*, 12/1/2020		2,000,000		2,012,240
Series B, 1.19%*, 12/1/2019		1,500,000		1,535,160

				13,796,317
South Carolina 0.1%
South Carolina, Jobs-Economic Development Authority, Hospital Improvement Revenue, Palmetto Health Alliance, 5.0%, 8/1/2015		500,000		514,600
South Dakota 0.3%
South Dakota, Housing Development Authority, Homeownership Mortgage, Series A, AMT, 4.5%, 5/1/2031		1,455,000		1,559,207
Tennessee 0.9%
Shelby County, TN, General Obligation, Series A, 5.0%, 4/1/2015		320,000		326,550
Tennessee, Housing Development Agency, Homeownership Program, Series 2006-3, AMT, 5.75%, 7/1/2037		375,000		386,276
Tennessee, Housing Development Agency, Residential Financing Program Revenue, Series 1C, 3.0%, 7/1/2038		2,110,000		2,223,539
Tennessee, State Housing Development Agency, Homeownership Program:
Series 2C, 4.0%, 7/1/2038		745,000		821,795
Series 1A, AMT, 4.5%, 1/1/2038		780,000		838,446
				4,596,606
Texas 17.4%
Allen, TX, Independent School District, 5.0%, 2/15/2024		1,000,000		1,189,530
Alvin, TX, Independent School District, School House, Series B, 2.0%, Mandatory Put 8/15/2015 @ 100, 2/15/2039		3,750,000		3,798,600
Clear Creek, TX, Independent School District, Series B, 2.0%, Mandatory Put 8/14/2015 @ 100, 2/15/2038		5,000,000		5,065,600
Dallas, TX, Refunding & Improvement, Series A, 4.0%, 2/15/2015		1,030,000		1,041,660
Dallas, TX, Waterworks & Sewer Systems Revenue:
5.0%, 10/1/2020		3,000,000		3,616,800
5.0%, 10/1/2021		2,000,000		2,387,980
EL Paso, TX, Water & Sewer Revenue, 4.0%, 3/1/2021		1,500,000		1,705,575
Fort Worth, TX, General Obligation, 5.0%, 3/1/2016		4,260,000		4,526,122
Goose Creek, TX, Consolidated Independent School District, School Building, Series B, 2.0%**, Mandatory Put 8/14/2015 @ 100, 2/15/2040		5,000,000		5,064,800
Harris County, TX, Cultural Education Facilities Finance Corp. Revenue, Memorial Herman Hospital Health System, Series B, 0.61%*, Mandatory Put 12/1/2019 @ 100, 12/1/2042		4,000,000		4,000,840
Houston, TX, Airport Systems Revenue, Series A, 5.0%, 7/1/2016		625,000		671,456
Houston, TX, Independent School District, Series A, 1.0%**, Mandatory Put 6/1/2015 @ 100, 6/1/2039		8,000,000		8,029,280
Mission, TX, Economic Development Corp., Solid Waste Disposal Revenue, Republic Services, Inc., AMT, 0.45%**, Mandatory Put 2/2/2015 @ 100, 1/1/2026		1,800,000		1,800,000
North Texas, Tollway Authority Revenue, 5.0%, 1/1/2020		3,000,000		3,542,190
Tarrant County, TX, Cultural Education Facilities Finance Corp., Hospital Revenue, Baylor Health Care System Project, Series E, 0.05%**, 11/15/2050, LOC: Wells Fargo Bank NA		5,000,000		5,000,000
Tarrant County, TX, Cultural Education Facilities Finance Corp., Hospital Revenue, Scott & White Healthcare, 5.25%, 8/15/2021		2,435,000		2,900,572
Texas, Aldine Independent School District, School Building, 5.0%, 2/15/2016		2,115,000		2,244,121
Texas, Dallas-Fort Worth International Airport Revenue:
Series E, AMT, 4.0%, 11/1/2015		1,200,000		1,246,452
Series F, AMT, 5.0%, 11/1/2014		500,000		500,000
Series A, 5.0%, 11/1/2016		4,000,000		4,359,800
Series D, 5.0%, 11/1/2022		1,485,000		1,745,009
Series D, 5.0%, 11/1/2023		2,890,000		3,385,259
Texas, Lower Colorado River Authority Revenue:
Series A, ETM, Prerefunded, 5.0%, 5/15/2016		40,000		42,812
Series A, 5.0%, 5/15/2016		3,460,000		3,702,996
Texas, Municipal Gas Acquisition & Supply Corp. II, Gas Supply Revenue, 0.857%*, 9/15/2017, GTY: JPMorgan Chase & Co.		2,830,000		2,830,849
Texas, Spring Branch Independent School District House, 3.0%, Mandatory Put 6/15/2015 @ 100, 6/15/2041		2,000,000		2,034,380
Texas, State A & M University Revenue, Financing System:
Series A, 5.0%, 5/15/2015		250,000		256,625
Series D, 5.0%, 5/15/2015		275,000		282,287
Texas, State Municipal Gas Acquisition & Supply Corp. III, Gas Supply Revenue:
5.0%, 12/15/2014		1,600,000		1,608,256
5.0%, 12/15/2021		3,000,000		3,529,470
Texas, State Public Finance Authority Revenue, Assessment Unemployment Compensation, Series B, 4.0%, 7/1/2018		1,430,000		1,486,514
Texas, State Tech University Revenues, Series A, 4.25%, 8/15/2021		1,500,000		1,738,065
West Harris County, TX, Regional Water Authority, Water Systems Revenue:
5.0%, 12/15/2015		1,605,000		1,690,065
5.0%, 12/15/2017		1,270,000		1,433,043
Williamson County, TX, Limited Tax-Park, 3.0%*, Mandatory Put 8/15/2015 @ 100, 8/15/2034		2,500,000		2,550,000
				91,007,008
Utah 0.3%
Utah, Single Family Housing Revenue, Series D-2, AMT, 5.0%, 7/1/2018		270,000		270,613
Utah, Single Family Housing Revenue, Mortgage Revenue, Series G, AMT, 4.875%, 1/1/2019		465,000		466,097
Utah, State General Obligation:
Series B, 4.0%, 7/1/2015		450,000		461,709
Series A, 5.0%, 7/1/2015		530,000		547,321
				1,745,740
Virginia 1.6%
Virginia, State College Building Authority, Educational Facilities Revenue, University of Richmond Project, 0.08%**, 11/1/2036, SPA: Wells Fargo Bank NA		5,130,000		5,130,000
Virginia, State Commonwealth Transportation Board, Grant Anticipation Revenue Notes, 5.0%, 9/15/2021		1,500,000		1,815,825
Virginia, State Resource Authority Infrastructure Revenue, Pooled Financing Program:
Series B, ETM, 5.0%, 11/1/2016		290,000		316,285
Series B, 5.0%, 11/1/2016		1,010,000		1,101,425
				8,363,535
Washington 4.8%
Pierce County, WA, Tacoma School District No.10, 2.0%, 12/1/2014		1,000,000		1,001,560
Seattle, WA, General Obligation, 2.5%, 12/1/2014		710,000		711,455
Washington, State General Obligation:
Series 2599, 144A, 0.06%**, 1/1/2016, LIQ: JPMorgan Chase Bank NA		9,005,000		9,005,000
Series R-2014A, 3.0%, 7/1/2015		6,000,000		6,116,160
Series C, 5.0%, 1/1/2015, INS: AMBAC		550,000		554,515
Series R-2011-A, 5.0%, 1/1/2015		725,000		730,952
Washington, State Motor Vehicle Fuel Tax:
Series R-B, 4.0%, 1/1/2015		125,000		125,818
Series B, 5.0%, 7/1/2022		5,000,000		6,109,000
Washington, State Public Power Supply System, Series B, 7.125%, 7/1/2016		450,000		499,775
				24,854,235
Wisconsin 0.2%
Wisconsin, State Clean Water Revenue, Series 2, 5.0%, 6/1/2019		1,000,000		1,171,960
Total Municipal Bonds and Notes (Cost $515,485,923)				528,805,098

	Shares		Value ($)

Open-End Investment Company 0.0%
BlackRock MuniFund, 0.02%*** (Cost $44,577)		44,577		44,577

	% of Net Assets			Value ($)

Total Investment Portfolio (Cost $515,530,500) †		101.2			528,849,675
Other Assets and Liabilities, Net		(1.2	)		(6,322,082	)
Net Assets		100.0			522,527,593

* Floating rate securities' yields vary with a designated market index or market rate, such as the coupon-equivalent of the U.S. Treasury Bill rate. These securities are shown at their current rate as of October 31, 2014.

** 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 October 31, 2014.

*** Current yield; not a coupon rate.

† The cost for federal income tax purposes was $515,530,500. At October 31, 2014, net unrealized appreciation for all securities based on tax cost was $13,319,175. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $13,582,835 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $263,660.

(a) When-issued security.

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

AGMC: Assured Guaranty Municipal Corp.

AMBAC: Ambac Financial Group, Inc.

AMT: Subject to alternative minimum tax.

ETM: Bonds bearing the description ETM (escrow to maturity) are collateralized usually by U.S. Treasury securities which are held in escrow and used to pay principal and interest on bonds so designated.

FGIC: Financial Guaranty Insurance Co.

GTY: Guaranty Agreement

INS: Insured

LIQ: Liquidity Facility

LOC: Letter of Credit

NATL: National Public Finance Guarantee Corp.

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

SPA: Standby Bond Purchase Agreement

Fair Value Measurements

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

The following is a summary of the inputs used as of October 31, 2014 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 Bonds and Notes (b)	$	—	$	528,805,098	$	—	$	528,805,098
Open-End Investment Company		44,577		—		—		44,577
Total	$	44,577	$	528,805,098	$	—	$	528,849,675

There have been no transfers between fair value measurement levels during the year ended October 31, 2014.

(b) 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 October 31, 2014
Assets
Investments in securities, at value (cost $515,530,500)	$	528,849,675
Receivable for investments sold		897,467
Receivable for Fund shares sold		1,850,152
Interest receivable		4,229,573
Other assets		22,633
Total assets		535,849,500
Liabilities
Payable for investments purchased — when-issued securities		11,715,000
Payable for Fund shares redeemed		1,019,889
Distributions payable		47,519
Accrued management fee		104,097
Accrued Trustees' fees		8,541
Other accrued expenses and payables		426,861
Total liabilities		13,321,907
Net assets, at value	$	522,527,593
Net Assets Consist of
Accumulated distributions in excess of net investment income		(47,519	)
Net unrealized appreciation (depreciation) on investments		13,319,175
Accumulated net realized gain (loss)		(14,498,718	)
Paid-in capital		523,754,655
Net assets, at value	$	522,527,593

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

Statement of Assets and Liabilities as of October 31, 2014 (continued)
Net Asset Value
Class A Net Asset Value and redemption price per share ($221,629,459 ÷ 21,601,175 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	10.26
Maximum offering price per share (100 ÷ 98.00 of $10.26)	$	10.47
Class B Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($208,987 ÷ 20,372 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	10.26
Class C Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($32,526,546 ÷ 3,171,367 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	10.26
Class S Net Asset Value, offering and redemption price per share ($95,719,474 ÷ 9,342,466 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	10.25
Institutional Class Net Asset Value, offering and redemption price per share ($172,443,127 ÷ 16,807,642 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)	$	10.26

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

Statement of Operations

for the year ended October 31, 2014
Investment Income
Income: Interest	$	8,933,707
Expenses: Management fee		2,217,528
Administration fee		556,501
Services to shareholders		539,318
Distribution and service fees		997,775
Custodian fee		16,638
Professional fees		94,700
Reports to shareholders		53,597
Registration fees		84,634
Trustees' fees and expenses		26,191
Other		59,733
Total expenses before expense reductions		4,646,615
Expense reductions		(833,191	)
Total expenses after expense reductions		3,813,424
Net investment income		5,120,283
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from: Investments		(184,856	)
Capital gain distributions from non-affiliated Underlying Funds		2,493
		(182,363	)
Change in net unrealized appreciation (depreciation) on investments		2,737,950
Net gain (loss)		2,555,587
Net increase (decrease) in net assets resulting from operations	$	7,675,870

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

Statement of Changes in Net Assets

	Years Ended October 31,
Increase (Decrease) in Net Assets	2014			2013
Operations: Net investment income	$	5,120,283		$	6,080,037
Net realized gain (loss)		(182,363	)		(152,835	)
Change in net unrealized appreciation (depreciation)		2,737,950			(7,283,214	)
Net increase (decrease) in net assets resulting from operations		7,675,870			(1,356,012	)
Distributions to shareholders from: Net investment income: Class A		(2,250,895	)		(3,041,113	)
Class B		(422	)		(994	)
Class C		(43,986	)		(91,455	)
Class S		(1,281,741	)		(1,854,702	)
Institutional Class		(1,545,729	)		(1,091,421	)
Total distributions		(5,122,773	)		(6,079,685	)
Fund share transactions: Proceeds from shares sold		283,133,700			259,203,473
Reinvestment of distributions		3,478,063			4,039,664
Payments for shares redeemed		(353,326,130	)		(305,367,424	)
Net increase (decrease) in net assets from Fund share transactions		(66,714,367	)		(42,124,287	)
Increase (decrease) in net assets		(64,161,270	)		(49,559,984	)
Net assets at beginning of period		586,688,863			636,248,847
Net assets at end of period (including accumulated distributions in excess of net investment income of $47,519 and $54,668, respectively)	$	522,527,593		$	586,688,863

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

Financial Highlights

	Years Ended October 31,
Class A		2014			2013			2012			2011			2010
Selected Per Share Data
Net asset value, beginning of period	$	10.21		$	10.34		$	10.24		$	10.27		$	10.14
Income (loss) from investment operations: Net investment incomea		.09			.10			.14			.17			.17
Net realized and unrealized gain (loss)		.05			(.13	)		.10			(.03	)		.13
Total from investment operations		.14			(.03	)		.24			.14			.30
Less distributions from: Net investment income		(.09	)		(.10	)		(.14	)		(.17	)		(.17	)
Net asset value, end of period	$	10.26		$	10.21		$	10.34		$	10.24		$	10.27
Total Return (%)b,c		1.37			(.31	)		2.36			1.42			3.03
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		222			294			338			336			424
Ratio of expenses before expense reductions (%)		.90			.90			.88			.86			.85
Ratio of expenses after expense reductions (%)		.73			.74			.75			.75			.82
Ratio of net investment income (%)		.87			.96			1.36			1.71			1.70
Portfolio turnover rate (%)		36			41			50			26			24
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charges. c Total return would have been lower had certain expenses not been reduced.

	Years Ended October 31,
Class B		2014			2013			2012			2011			2010
Selected Per Share Data
Net asset value, beginning of period	$	10.21		$	10.33		$	10.24		$	10.27		$	10.14
Income (loss) from investment operations: Net investment incomea		.01			.02			.06			.10			.10
Net realized and unrealized gain (loss)		.05			(.12	)		.09			(.03	)		.13
Total from investment operations		.06			(.10	)		.15			.07			.23
Less distributions from: Net investment income		(.01	)		(.02	)		(.06	)		(.10	)		(.10	)
Net asset value, end of period	$	10.26		$	10.21		$	10.33		$	10.24		$	10.27
Total Return (%)b,c		.61			(.96	)		1.49			.66			2.26
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		.2			.4			1			1			1
Ratio of expenses before expense reductions (%)		1.66			1.67			1.66			1.67			1.67
Ratio of expenses after expense reductions (%)		1.48			1.49			1.50			1.50			1.58
Ratio of net investment income (%)		.13			.21			.62			.96			.94
Portfolio turnover rate (%)		36			41			50			26			24
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charges. c Total return would have been lower had certain expenses not been reduced.

	Years Ended October 31,
Class C		2014			2013			2012			2011			2010
Selected Per Share Data
Net asset value, beginning of period	$	10.21		$	10.33		$	10.24		$	10.27		$	10.13
Income (loss) from investment operations: Net investment incomea		.01			.02			.06			.10			.10
Net realized and unrealized gain (loss)		.05			(.12	)		.09			(.03	)		.14
Total from investment operations		.06			(.10	)		.15			.07			.24
Less distributions from: Net investment income		(.01	)		(.02	)		(.06	)		(.10	)		(.10	)
Net asset value, end of period	$	10.26		$	10.21		$	10.33		$	10.24		$	10.27
Total Return (%)b,c		.61			(.96	)		1.50			.66			2.35
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		33			39			46			52			64
Ratio of expenses before expense reductions (%)		1.67			1.66			1.65			1.63			1.64
Ratio of expenses after expense reductions (%)		1.48			1.49			1.50			1.50			1.57
Ratio of net investment income (%)		.12			.21			.61			.96			.95
Portfolio turnover rate (%)		36			41			50			26			24
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charges. c Total return would have been lower had certain expenses not been reduced.

	Years Ended October 31,
Class S		2014			2013			2012			2011			2010
Selected Per Share Data
Net asset value, beginning of period	$	10.20		$	10.32		$	10.23		$	10.26		$	10.13
Income (loss) from investment operations: Net investment incomea		.10			.11			.16			.19			.19
Net realized and unrealized gain (loss)		.05			(.12	)		.09			(.03	)		.13
Total from investment operations		.15			(.01	)		.25			.16			.32
Less distributions from: Net investment income		(.10	)		(.11	)		(.16	)		(.19	)		(.19	)
Net asset value, end of period	$	10.25		$	10.20		$	10.32		$	10.23		$	10.26
Total Return (%)b		1.52			(.06	)		2.41			1.57			3.17
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		96			167			161			161			182
Ratio of expenses before expense reductions (%)		.71			.70			.73			.72			.77
Ratio of expenses after expense reductions (%)		.58			.59			.60			.60			.67
Ratio of net investment income (%)		1.03			1.11			1.51			1.86			1.85
Portfolio turnover rate (%)		36			41			50			26			24
a Based on average shares outstanding during the period. b Total return would have been lower had certain expenses not been reduced.

	Years Ended October 31,
Institutional Class		2014			2013			2012			2011			2010
Selected Per Share Data
Net asset value, beginning of period	$	10.21		$	10.34		$	10.24		$	10.27		$	10.14
Income (loss) from investment operations: Net investment incomea		.12			.12			.17			.20			.20
Net realized and unrealized gain (loss)		.05			(.13	)		.10			(.03	)		.13
Total from investment operations		.17			(.01	)		.27			.17			.33
Less distributions from: Net investment income		(.12	)		(.12	)		(.17	)		(.20	)		(.20	)
Net asset value, end of period	$	10.26		$	10.21		$	10.34		$	10.24		$	10.27
Total Return (%)b		1.63			(.06	)		2.62			1.67			3.28
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		172			85			90			51			72
Ratio of expenses before expense reductions (%)		.60			.59			.59			.59			.59
Ratio of expenses after expense reductions (%)		.48			.49			.50			.50			.57
Ratio of net investment income (%)		1.12			1.21			1.59			1.96			1.95
Portfolio turnover rate (%)		36			41			50			26			24
a Based on average shares outstanding during the period. b Total return would have been lower had certain expenses not been reduced.

Notes to Financial Statements

A. Organization and Significant Accounting Policies

Deutsche Short-Term Municipal Bond Fund (formerly DWS Short-Term Municipal Bond Fund) (the "Fund") is a diversified series of Deutsche Municipal Trust (formerly 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. 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, prepayment speeds and other data, as well as broker quotes. If the pricing services are unable to provide valuations, debt securities are valued at the average of the most recent reliable bid quotations or evaluated prices, as applicable, obtained from broker-dealers. These securities are generally categorized as Level 2.

Investments in open-end investment companies are valued at their net asset value each business day and are categorized as Level 1.

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 considered 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.

When-Issued/Delayed Delivery Securities. The Fund may purchase or sell 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 or sell 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 October 31, 2014, the Fund had a net tax basis capital loss carryforward of approximately $14,499,000, including $12,896,000 of pre-enactment losses, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or October 31, 2015 ($631,000), October 31, 2016 ($5,651,000), October 31, 2017 ($5,603,000) and October 31, 2018 ($1,011,000), the respective expiration dates, whichever occurs first; and approximately $1,603,000 of post-enactment losses, which may be applied against realized net taxable capital gains indefinitely, including short-term losses ($169,000) and long-term losses ($1,434,000).

The Fund has reviewed the tax positions for the open tax years as of October 31, 2014 and has determined that no provision for income tax and/or uncertain tax provisions 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 certain securities sold at a loss. 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.

At October 31, 2014, the Fund's components of distributable earnings (accumulated losses) on a tax basis were as follows:

Capital loss carryforwards		$	(14,499,000	)
Net unrealized appreciation (depreciation) on investments		$	13,319,175

In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:

	Years Ended October 31,
	2014		2013
Tax-exempt income	$	5,122,773	$	6,079,685

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. All premiums and discounts are amortized/accreted for both tax and financial reporting purposes with the exception of securities in default of principal.

B. Purchases and Sales of Securities

During the year ended October 31, 2014, purchases and sales of investment securities (excluding short-term investments) aggregated $198,024,113 and $249,125,514, 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 $500 million of the Fund's average daily net assets	.400	%
Next $500 million of such net assets	.385	%
Next $1.0 billion of such net assets	.370	%
Over $2.0 billion of such net assets	.355	%

Accordingly, for the year ended October 31, 2014, the fee pursuant to the Investment Management Agreement was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.40% of the Fund's average daily net assets.

For the period from November 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	.73%
Class B	1.48%
Class C	1.48%
Class S	.58%
Institutional Class	.48%

Effective October 1, 2014 through September 30, 2015, 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	.76%
Class B	1.51%
Class C	1.51%
Class S	.61%
Institutional Class	.51%

For the year ended October 31, 2014, fees waived and/or expenses reimbursed for each class are as follows:

Class A	$	432,432
Class B		602
Class C		68,039
Class S		165,821
Institutional Class		166,297
	$	833,191

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 year ended October 31, 2014, the Administration Fee was $556,501, of which $44,428 is unpaid.

Service Provider Fees. DeAWM Service Company ("DSC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent of the Fund. Pursuant to a sub-transfer agency agreement between DSC and DST Systems, Inc. ("DST"), DSC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the year ended October 31, 2014, the amounts charged to the Fund by DSC were as follows:

Services to Shareholders	Total Aggregated		Unpaid at October 31, 2014
Class A	$	10,490	$	2,257
Class B		152		33
Class C		2,585		516
Class S		24,497		1,617
Institutional Class		4,249		1,252
	$	41,973	$	5,675

Distribution and Service Fees. Under the Fund's Class B and Class C 12b-1 Plans, DeAWM Distributors, Inc. ("DDI"), 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, DDI enters into related selling group agreements with various firms at various rates for sales of Class B and C shares. For the year ended October 31, 2014, the Distribution Fee was as follows:

Distribution Fee	Total Aggregated		Unpaid at October 31, 2014
Class B	$	2,491	$	136
Class C		267,485		20,888
	$	269,976	$	21,024

In addition, DDI 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. DDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder accounts the firms service. For the year ended October 31, 2014, the Service Fee was as follows:

Service Fee	Total Aggregated		Unpaid at October 31, 2014		Annual Rate
Class A	$	637,958	$	95,437		.25	%
Class B		827		101		.25	%
Class C		89,014		14,799		.25	%
	$	727,799	$	110,337

Underwriting Agreement and Contingent Deferred Sales Charge. DDI is the principal underwriter for the Fund. Underwriting commissions paid in connection with the distribution of Class A shares for the year ended October 31, 2014, aggregated $4,102.

In addition, DDI 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 year ended October 31, 2014, the CDSC for Class B and C shares was $950 and $4,190, respectively. A deferred sales charge of up to 50% is assessed on certain redemptions of Class A shares. For the year ended October 31, 2014, DDI received $14,269 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 year ended October 31, 2014, the amount charged to the Fund by DIMA included in the Statement of Operations under "Reports to shareholders" aggregated $24,511, of which $8,822 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. Line of Credit

The Fund and other affiliated funds (the "Participants") share in a $400 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 October 31, 2014.

E. Concentration of Ownership

From time to time, the Fund may have a concentration of several shareholder accounts holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund. At October 31, 2014, one shareholder account held approximately 15% of the outstanding shares of the Fund.

F. Share Transactions

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

	Year Ended October 31, 2014						Year Ended October 31, 2013
	Shares			Dollars			Shares			Dollars
Shares sold
Class A		4,190,174		$	42,833,574			8,074,254		$	82,916,340
Class B		—			—			1,109			11,437
Class C		471,352			4,817,588			722,935			7,416,759
Class S		5,111,294			52,217,167			9,137,142			93,722,122
Institutional Class		17,925,901			183,265,371			7,312,736			75,136,815
				$	283,133,700					$	259,203,473
Shares issued to shareholders in reinvestment of distributions
Class A		189,539		$	1,939,732			252,184		$	2,590,887
Class B		41			421			99			1,017
Class C		3,240			33,133			6,778			69,790
Class S		73,353			749,861			74,051			759,593
Institutional Class		73,733			754,916			60,221			618,377
				$	3,478,063					$	4,039,664
Shares redeemed
Class A		(11,563,934	)	$	(118,306,830	)		(12,245,288	)	$	(125,786,514	)
Class B		(23,042	)		(235,737	)		(8,321	)		(85,774	)
Class C		(1,165,870	)		(11,920,240	)		(1,348,527	)		(13,835,628	)
Class S		(12,260,631	)		(125,058,129	)		(8,391,172	)		(86,049,059	)
Institutional Class		(9,551,024	)		(97,805,194	)		(7,750,490	)		(79,610,449	)
				$	(353,326,130	)				$	(305,367,424	)
Net increase (decrease)
Class A		(7,184,221	)	$	(73,533,524	)		(3,918,850	)	$	(40,279,287	)
Class B		(23,001	)		(235,316	)		(7,113	)		(73,320	)
Class C		(691,278	)		(7,069,519	)		(618,814	)		(6,349,079	)
Class S		(7,075,984	)		(72,091,101	)		820,021			8,432,656
Institutional Class		8,448,610			86,215,093			(377,533	)		(3,855,257	)
				$	(66,714,367	)				$	(42,124,287	)

Report of Independent Registered Public Accounting Firm

To the Trustees of Deutsche Municipal Trust and Shareholders of Deutsche Short-Term Municipal Bond Fund:

In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Deutsche Short-Term Municipal Bond Fund (formerly DWS Short-Term Municipal Bond Fund) (the "Fund") at October 31, 2014, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian, brokers and transfer agent, and the application of alternative auditing procedures where such confirmations had not been received, provide a reasonable basis for our opinion.

Boston, Massachusetts

December 22, 2014

PricewaterhouseCoopers LLP

Information About Your Fund's Expenses

As an investor, 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 (May 1, 2014 to October 31, 2014).

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 October 31, 2014 (Unaudited)
Actual Fund Return	Class A		Class B		Class C		Class S		Institutional Class
Beginning Account Value 5/1/14	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00
Ending Account Value 10/31/14	$	1,007.20	$	1,003.30	$	1,003.40	$	1,008.00	$	1,008.50
Expenses Paid per $1,000*	$	3.69	$	7.52	$	7.47	$	2.99	$	2.43
Hypothetical 5% Fund Return	Class A		Class B		Class C		Class S		Institutional Class
Beginning Account Value 5/1/14	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00	$	1,000.00
Ending Account Value 10/31/14	$	1,021.53	$	1,017.69	$	1,017.74	$	1,022.23	$	1,022.79
Expenses Paid per $1,000*	$	3.72	$	7.58	$	7.53	$	3.01	$	2.45

* 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 184 (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
Deutsche Short-Term Municipal Bond Fund	.73%	1.49%	1.48%	.59%	.48%

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.

Tax Information (Unaudited)

Of the dividends paid from net investment income for the taxable year ended October 31, 2014, 100% are designated as exempt interest dividends for federal income tax purposes.

Please contact a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call (800) 728-3337.

Advisory Agreement Board Considerations and Fee Evaluation

The Board of Trustees approved the renewal of Deutsche Short-Term Municipal Bond Fund’s investment management agreement (the "Agreement") with Deutsche Investment Management Americas Inc. ("DIMA") in September 2014.

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

— In September 2014, 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 counsel to discuss contract review and other matters. In addition, the Independent Trustees were 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 ("DB"), 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 Deutsche fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.

In 2012, DB combined its Asset Management (of which DIMA was a part) and Wealth Management divisions into a new Asset and Wealth Management ("AWM") division. DB has advised the Independent Trustees that the U.S. asset management business is a critical and integral part of DB, and that DB will continue to invest in AWM a significant portion of the savings it has realized by combining its Asset and Wealth Management divisions, including ongoing enhancements to AWM’s 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 index(es) 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 a peer universe), and receives more frequent reporting and information from DIMA regarding such funds, along with DIMA’s 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, 2013, the Fund’s performance (Class A shares) was in the 4th quartile, 3rd quartile and 3rd 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 three- and five-year periods and has underperformed its benchmark in the one-year period ended December 31, 2013. 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 observed that the Fund had experienced improved relative performance during the first seven months of 2014. The Board recognized the efforts by DIMA in recent years to enhance its investment platform and improve long-term performance across the Deutsche 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 (3rd quartile) of the applicable Lipper peer group (based on Lipper data provided as of December 31, 2013). The Board noted that the Fund’s Class A shares total (net) operating expenses (excluding 12b-1 fees) were expected to be higher than the median (3rd quartile) of the applicable Lipper expense universe (based on Lipper data provided as of December 31, 2013, 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 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 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 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 information requested by the Board as part of its review of fees and expenses also included information about institutional accounts and funds offered primarily to European investors ("Deutsche Europe funds") managed by DIMA and its affiliates. The Board noted that DIMA indicated that it does not manage any institutional accounts or Deutsche Europe funds comparable to the Fund.

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 Deutsche U.S. mutual funds ("Deutsche 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 DIMA 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.

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 Deutsche 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 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.

Board Members and Officers

The following table presents certain information regarding the Board Members and Officers of the fund. Each Board Member's year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Kenneth C. Froewiss, Chairman, Deutsche Mutual Funds, P.O. Box 390601, Cambridge, MA 02139. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the fund. Because the fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex.

Independent Board Members
Name, Year of Birth, Position with the Fund and Length of Time Served1	Business Experience and Directorships During the Past Five Years	Number of Funds in Deutsche Fund Complex Overseen	Other Directorships Held by Board Member
Kenneth C. Froewiss (1945) Chairperson since 2013, and Board Member since 2001	Adjunct Professor of Finance, NYU Stern School of Business (September 2009–present; Clinical Professor from 1997–September 2009); Member, Finance Committee, Association for Asian Studies (2002–present); Director, Mitsui Sumitomo Insurance Group (US) (2004–present); prior thereto, Managing Director, J.P. Morgan (investment banking firm) (until 1996)	105	—
William McClayton (1944) Vice Chairperson since 2013, and Board Member since 2004	Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Trustee, Ravinia Festival	105	—
John W. Ballantine (1946) Board Member since 1999	Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); former Directorships: Director and former Chairman of the Board, Healthways, Inc.2 (provider of disease and care management services) (2003–2014); Stockwell Capital Investments PLC (private equity); First Oak Brook Bancshares, Inc. and Oak Brook Bank; Prisma Energy International	105	Portland General Electric2 (utility company) (2003– present)
Henry P. Becton, Jr. (1943) Board Member since 1990	Vice Chair and former President, WGBH Educational Foundation. Directorships: Public Radio International; Public Radio Exchange (PRX); North Bennett Street School (Boston); former Directorships: Belo Corporation2 (media company); The PBS Foundation; Association of Public Television Stations; Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service; Connecticut College	105	Lead Director, Becton Dickinson and Company2 (medical technology company)
Dawn-Marie Driscoll (1946) Board Member since 1987	Emeritus Executive Fellow, Center for Business Ethics, Bentley University; formerly: President, Driscoll Associates (consulting firm); Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene's (retail) (1978–1988). Directorships: Director of ICI Mutual Insurance Company (since 2007); Advisory Board, Center for Business Ethics, Bentley University; Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); former Directorships: Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees)	105	—
Keith R. Fox, CFA (1954) Board Member since 1996	Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies; former Directorships: BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) (2011–2012)	105	—
Paul K. Freeman (1950) Board Member since 1993	Consultant, World Bank/Inter-American Development Bank; Chair, Governing Council of the Independent Directors Council (Chairman of Education Committee); formerly: Project Leader, International Institute for Applied Systems Analysis (1998–2001); Chief Executive Officer, The Eric Group, Inc. (environmental insurance) (1986–1998); Directorships: Denver Zoo Foundation (December 2012–present); former Directorships: Prisma Energy International	105	—
Richard J. Herring (1946) Board Member since 1990	Jacob Safra Professor of International Banking and Professor, Finance Department, The Wharton School, University of Pennsylvania (since July 1972); Co-Director, Wharton Financial Institutions Center; Co-Chair, U.S. Shadow Financial Regulatory Committee; Executive Director, Financial Economists Roundtable; formerly: Vice Dean and Director, Wharton Undergraduate Division (July 1995–June 2000); Director, Lauder Institute of International Management Studies (July 2000–June 2006)	105	Director, Aberdeen Singapore and Japan Funds (since 2007); Independent Director of Barclays Bank Delaware (since September 2010)
Rebecca W. Rimel (1951) Board Member since 1995	President and Chief Executive Officer, The Pew Charitable Trusts (charitable organization) (1994 to present); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012)	105	Director, Becton Dickinson and Company2 (medical technology company) (2012– present); Director, BioTelemetry Inc.2 (health care) (2009– present)
William N. Searcy, Jr. (1946) Board Member since 1993	Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012)	105	—
Jean Gleason Stromberg (1943) Board Member since 1997	Retired. Formerly, Consultant (1997–2001); Director, Financial Markets U.S. Government Accountability Office (1996–1997); Partner, Norton Rose Fulbright, L.L.P. (law firm) (1978–1996). Directorships: The William and Flora Hewlett Foundation (charitable organization); former Directorships: Service Source, Inc. (nonprofit), Mutual Fund Directors Forum (2002–2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987–1990 and 1994–1996)	105	—
Robert H. Wadsworth (1940) Board Member since 1999	President, Robert H. Wadsworth & Associates, Inc. (consulting firm) (1983 to present); Director, The Phoenix Boys Choir Association	105	—

Officers4
Name, Year of Birth, Position with the Fund and Length of Time Served5		Business Experience and Directorships During the Past Five Years
Brian E. Binder8 (1972) President and Chief Executive Officer, 2013–present		Managing Director3 and Head of Fund Administration, Deutsche Asset & Wealth Management (2013–present); formerly: Head of Business Management and Consulting at Invesco, Ltd. (2010–2012); Chief Administrative Officer, Van Kampen Funds Inc. (2008–2010); and Chief Administrative Officer, Morgan Stanley Investment Management Americas Distribution (2003–2008)
John Millette7 (1962) Vice President and Secretary, 1999–present		Director,3 Deutsche Asset & Wealth Management
Melinda Morrow6 (1970) Vice President, 2012–present		Director,3 Deutsche Asset & Wealth Management
Paul H. Schubert6 (1963) Chief Financial Officer, 2004–present Treasurer, 2005–present		Managing Director,3 Deutsche Asset & Wealth Management (since July 2004); formerly: Executive Director, Head of Mutual Fund Services and Treasurer for UBS Family of Funds (1998–2004); Vice President and Director of Mutual Fund Finance at UBS Global Asset Management (1994–1998)
Caroline Pearson7 (1962) Chief Legal Officer, 2010–present		Managing Director,3 Deutsche Asset & Wealth Management; formerly: Assistant Secretary for DWS family of funds (1997–2010)
Robert Kloby6 (1962) Chief Compliance Officer, 2006–present		Managing Director,3 Deutsche Asset & Wealth Management
Wayne Salit6 (1967) Anti-Money Laundering Compliance Officer, 2014–present		Director,3 Deutsche Asset & Wealth Management; formerly: Managing Director, AML Compliance Officer at BNY Mellon (2011–2014); and Director, AML Compliance Officer at Deutsche Bank (2004–2011)
Hepsen Uzcan7 (1974) Assistant Secretary, 2013–present		Director,3 Deutsche Asset & Wealth Management
Paul Antosca7 (1957) Assistant Treasurer, 2007–present		Director,3 Deutsche Asset & Wealth Management
Jack Clark7 (1967) Assistant Treasurer, 2007–present		Director,3 Deutsche Asset & Wealth Management
Diane Kenneally7 (1966) Assistant Treasurer, 2007–present		Director,3 Deutsche Asset & Wealth Management

1 The length of time served represents the year in which the Board Member joined the board of one or more Deutsche funds currently overseen by the Board.

2 A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934.

3 Executive title, not a board directorship.

4 As a result of their respective positions held with the Advisor, these individuals are considered "interested persons" of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the fund.

5 The length of time served represents the year in which the officer was first elected in such capacity for one or more Deutsche funds.

6 Address: 60 Wall Street, New York, NY 10005.

7 Address: One Beacon Street, Boston, MA 02108.

8 Address: 222 South Riverside Plaza, Chicago, IL 60606.

The fund's Statement of Additional Information ("SAI") includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the following toll-free number: (800) 728-3337.

Account Management Resources


For More Information		The automated telephone system allows you to access personalized account information and obtain information on other Deutsche 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		deutschefunds.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 Deutsche 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 — deutschefunds.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 deutschefunds.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: DeAWM 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	SRMAX	SRMBX	SRMCX	SRMSX	MGSMX
CUSIP Number	25158T 863	25158T 871	25158T 889	25158T 806	25158T 830
Fund Number	436	636	736	2336	536

Notes

Date of fiscal year end:	10/31

Date of reporting period:	10/31/2014


ITEM 2.	CODE OF ETHICS

	As of the end of the period covered by this report, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Financial Officer. There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

ITEM 3.	AUDIT COMMITTEE FINANCIAL EXPERT

	The fund’s audit committee is comprised solely of trustees who are "independent" (as such term has been defined by the Securities and Exchange Commission ("SEC") in regulations implementing Section 407 of the Sarbanes-Oxley Act (the "Regulations")). The fund’s Board of Trustees has determined that there are several "audit committee financial experts" (as such term has been defined by the Regulations) serving on the fund’s audit committee including Mr. Paul K. Freeman, the chair of the fund’s audit committee. An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an “audit committee financial expert” does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.

ITEM 4.	PRINCIPAL ACCOUNTANT FEES AND SERVICES

Fiscal Year Ended October 31,	Audit Fees Billed to Fund		Audit-Related Fees Billed to Fund		Tax Fees Billed to Fund		All Other Fees Billed to Fund
2014	$	68,799	$	0	$	0	$	0
2013	$	66,194	$	0	$	0	$	0

Fiscal Year Ended October 31,	Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers		Tax Fees Billed to Adviser and Affiliated Fund Service Providers		All Other Fees Billed to Adviser and Affiliated Fund Service Providers
2014	$	0	$	63,439	$	0
2013	$	0	$	66,535	$	0

Fiscal Year Ended October 31,	Total Non-Audit Fees Billed to Fund (A)		Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B)		Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C)		Total of (A), (B) and (C)
2014	$	0	$	63,439	$	0	$	63,439
2013	$	0	$	66,535	$	0	$	66,535


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, Deutsche Mutual Funds, P.O. Box 390601, Cambridge, MA 02139.

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)	Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH.

	(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:	Deutsche Short-Term Municipal Bond Fund, a series of Deutsche Municipal Trust


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

Date:	December 30, 2014

Fund Board	Principal Executive Officers	Principal Financial Officers	Treasurer
Deutsche Funds	Brian Binder5	Paul Schubert	Paul Schubert
Germany*	Brian Binder	Paul Schubert	Paul Schubert

December 30, 2014	/s/Paul Schubert
	Paul Schubert
	Chief Financial Officer and Treasurer