Tender Offer - Federated Hermes Premier Municipal Income Fund

Form Type: N-CSR

Filing Date: 2025-01-29

Corporate Action: Tender-offer

Type: New

Accession Number: 000162363225000161

Filing Summary: The Federated Hermes Premier Municipal Income Fund presents its Annual Shareholder Report for the period from December 1, 2023, to November 30, 2024. The Fund achieved a total return of 9.47% based on net asset value (NAV) for its Common Shares, which is a combination of 3.73% from tax-exempt dividends and reinvestments and a 5.74% appreciation in NAV. The report highlights the Fund's performance relative to the S&P Municipal Bond Index and the Morningstar US Closed End Muni National Long category. The Fund utilized structural leverage effectively, resulting in amplified NAV volatility and positive net impacts despite the increased risks presented by leverage. A tender offer was completed in October 2024, where 32% of the outstanding Common Shares were purchased at 99% of NAV, providing liquidity options for shareholders. Additionally, the report discusses adjustments made to preferred shares outstanding, ensuring compliance with leverage constraints while also managing dividend rates linked to market conditions. The monthly dividend was raised during the reporting period, reflecting favorable conditions after a reduction in leverage costs. Overall, the report provides insights into the Fund's investment strategies, assets allocation, sector performance, and adherence to regulatory requirements.

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