United States Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-21235
(Investment Company Act File Number)
Federated Hermes
Premier Municipal Income Fund
(Exact Name of Registrant as Specified in
Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant’s Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 2026-11-30
Date of Reporting Period: Six months ended
2026-05-31
| Item 1. | Reports to Stockholders |
Semi-Annual Shareholder Report
Federated Hermes Premier Municipal Income Fund
Dear Valued Shareholder,
We are pleased to present the Semi-Annual Shareholder Report for your fund covering
the period from December 1, 2025 through May 31, 2026. This report includes a complete listing of your fund’s holdings, performance information and financial statements along with other important fund information.
As a global leader in active investment management, Federated Hermes is guided by
our conviction that responsible investing is the best way to create wealth over the long term. The company provides capabilities across
a wide range of asset classes to investors around the world.
In addition, FederatedHermes.com/us offers quick and easy access to valuable resources that include timely fund updates,
economic and market insights from our investment strategists and financial planning tools.
You can also access many of those insights by following us on X (@FederatedHermes) and LinkedIn.
Thank you for investing with us. We hope you find this information useful and look
forward to keeping you informed.
Sincerely,
J. Christopher Donahue, President
Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee
Portfolio Overview
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Taxable Equivalent
Dividend Yield2
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Weighted Average Effective Maturity
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Weighted Average Stated Maturity
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Weighted Average Modified Duration3
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Total Number of Securities
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Semi-Annual Shareholder Report
Tax-Free Dividends Per Share Since Inception
February 2003–August 2005
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September 2005–October 2006
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November 2006–February 2009
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December 2012–August 2014
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Performance and composition information is updated monthly on FederatedHermes.com/us.
Past performance is no guarantee of future results. Investment return, price, yield
and NAV will fluctuate.
1
Dividend Yield on market share price is an annualized number, calculated by multiplying the fund’s most recent monthly dividend per share by 12 and then dividing by the month-end market price per share.
2
Taxable Equivalent Dividend Yield–In calculating this yield, the dividend yield is divided by 1 minus the applicable
tax rate. The maximum federal tax rate (37%) is used when calculating the taxable equivalent dividend yield. Federal
tax rates are based on 2018 rates as stated in the Tax Cuts and Jobs Act of 2018.
3
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
4
The ratings agencies that provided the ratings are Standard & Poor’s, Moody’s Investors Service and Fitch Ratings. When ratings vary, the highest rating is used. Credit ratings of A or better are considered high credit quality; credit
ratings of BBB are good credit quality and the lowest category of investment grade; credit ratings BB and below are lower-rated securities (“junk bonds”); and credit ratings of CCC or below have high default risk. The credit quality breakdown does not give effect to the impact of any credit derivative
investments made by the fund.
Semi-Annual Shareholder Report
Portfolio of Investments Summary Table (unaudited)
At May 31, 2026, the Fund’s sector composition1 was as follows:
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Percentage of
Total Investments
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General Obligation—State Appropriation
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Industrial Development Bond/Pollution Control Revenue
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Primary/Secondary Education
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Sector classifications, and the assignment of holdings to such sectors, are based
upon the economic sector and/or revenue source of the underlying borrower, as
determined by the Fund’s Adviser. For securities that have been enhanced by a third-party guarantor, such as bond insurers and banks, sector classifications are
based upon the economic sector and/or revenue source of the underlying obligor, as determined by the Fund’s Adviser.
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For purposes of this table, sector classifications constitute 83.1% of the Fund’s investments. Remaining sectors have been aggregated under the designation
“Other.”
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Semi-Annual Shareholder Report
Portfolio of Investments
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Alabama State Corrections Industrial Finance Authority (Alabama State), Revenue Bonds
(Series 2022A), 5.250%, 7/1/2052
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Jefferson County, AL (Jefferson County, AL Sewer System), Sewer Revenue Warrants (Series
2024), 5.250%, 10/1/2049
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Lower Alabama Gas District, Gas Project Revenue Bonds (Series 2016A), (Goldman Sachs
Group, Inc. GTD), 5.000%, 9/1/2046
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Arizona Board of Regents (Arizona State University), System Revenue Bonds (Series
2024A), 5.000%, 7/1/2042
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Maricopa County, AZ, IDA (Paradise Schools), Revenue Refunding Bonds, 5.000%, 7/1/2036
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Phoenix, AZ Civic Improvement Corp., Junior Lien Wastewater System Revenue Bonds (Series
2023), 5.250%, 7/1/2047
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Phoenix, AZ IDA (GreatHearts Arizona), Education Facility Revenue Bonds (Series 2014A),
5.000%, 7/1/2034
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Pima County, AZ IDA (La Posada at Pusch Ridge), Senior Living Revenue Bonds (Series
2022A), 6.750%, 11/15/2042
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California School Finance Authority (KIPP LA), School Facility Revenue Bonds (Series
2015A), 5.000%, 7/1/2035
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M-S-R Energy Authority, CA, Gas Revenue Bonds (Series 2009A), (Citigroup, Inc. GTD),
7.000%, 11/1/2034
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M-S-R Energy Authority, CA, Gas Revenue Bonds (Series 2009A), (Original Issue Yield:
6.375%), (Citigroup, Inc. GTD),
6.125%, 11/1/2029
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San Francisco, CA City & County Airport Commission, Second Series Revenue Bonds (Series
2019F), 5.000%, 5/1/2050
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University of California (The Regents of), General Revenue Bonds (Series 2025CC),
5.000%, 5/15/2053
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Colorado Educational & Cultural Facilities Authority (University Lab School), Charter
School Refunding & Improvement
Revenue Bonds (Series 2015), 5.000%, 12/15/2035
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Colorado Health Facilities Authority (CommonSpirit Health), Revenue Bonds (Series
2022), 5.500%, 11/1/2047
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Colorado High Performance Transportation Enterprise, C-470 Express Lanes Senior Revenue
Bonds (Series 2017),
5.000%, 12/31/2056
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Colorado State Health Facilities Authority (Intermountain Healthcare Obligated Group),
Revenue Bonds (Series 2024A),
5.000%, 5/15/2054
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Denver, CO City & County School District #1, UT GO Bonds (Series 2025A), 5.500%, 12/1/2044
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Public Authority for Colorado Energy, Natural Gas Purchase Revenue Bonds (Series 2008),
(Original Issue Yield: 6.630%),
(Bank of America Corp. GTD), 6.250%, 11/15/2028
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Stamford, CT Housing Authority (Mozaic Concierge Living), Revenue Bonds (Series 2025A),
6.375%, 10/1/2045
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Delaware State, UT GO Bonds (Series 2025), 4.000%, 5/1/2040
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District of Columbia—0.3%
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District of Columbia (Friendship Public Charter School, Inc.), Revenue Bonds (Series
2016A), 5.000%, 6/1/2041
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Atlantic Beach, FL Health Care Facilities (Fleet Landing Project, FL), Revenue & Refunding
Bonds (Series 2013A),
5.000%, 11/15/2028
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Florida Development Finance Corp. (Tampa General Hospital), Healthcare Facilities
Revenue Bonds (Series 2024A),
5.250%, 8/1/2049
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Florida Local Government Finance Commission (Ponte Vedra Pine Company LLC), Fleet
Landing at Nocatee Senior Living
Revenue Bonds (Series 2025A), (Original Issue Yield: 6.650%), 6.625%, 11/15/2045
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Lakewood Ranch, FL Stewardship District (Taylor Ranch), Special Assessment Revenue
Bonds (Series 2023), 6.125%, 5/1/2043
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Lee County, FL IDA (Cypress Cove at Healthpark), Healthcare Facilities Revenue Bonds
(Series 2026), 5.250%, 10/1/2044
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Miami-Dade County, FL (Miami-Dade County, FL Transit System), Sales Surtax Revenue
Bonds (Series 2020A),
4.000%, 7/1/2050
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Miami-Dade County, FL Aviation Department, Aviation Revenue Bonds (Series 2025B),
5.000%, 10/1/2050
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Midtown Miami, FL CDD, Special Assessment & Revenue Refunding Bonds (Series 2014A),
5.000%, 5/1/2029
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Semi-Annual Shareholder Report
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MUNICIPAL BONDS—continued
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Rivers Edge II CDD, Capital Improvement Revenue Bonds (Series 2021), 4.000%, 5/1/2051
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Atlanta, GA Development Authority (Westside Gulch Area Project (Spring Street Atlanta)),
Senior Revenue Bonds
(Series 2024A-1), 5.000%, 4/1/2034
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Fulton County, GA Residential Care Facilities (Lenbrook Square Foundation, Inc.),
Retirement Facility Refunding Revenue
Bonds (Series 2016), 5.000%, 7/1/2036
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Main Street Natural Gas, Inc., GA, Gas Supply Revenue Bonds (Series 2023C), (Royal
Bank of Canada GTD), 5.000%,
Mandatory Tender 9/1/2030
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Municipal Electric Authority of Georgia, Plant Vogtle Units 3&4 Project J Revenue
Refunding Bonds (Series 2015A),
5.500%, 7/1/2060
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Municipal Electric Authority of Georgia, Plant Vogtle Units 3&4 Project M Bonds (Series
2021A), 5.000%, 1/1/2056
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Municipal Electric Authority of Georgia, Plant Vogtle Units 3&4 Project P Revenue
Refunding Bonds (Series 2023A),
5.500%, 7/1/2064
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Savannah-Georgia Convention Center Authority Convention Center Hotel First Tier Revenue
Bonds (Series 2025A), (Original
Issue Yield: 5.270%), 5.125%, 6/1/2050
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Guam Waterworks Authority, Water and Wastewater System Revenue Bonds (Series 2025A),
5.250%, 7/1/2039
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Hawaii State Airports System, Revenue Bonds (Series 2025A), 5.000%, 7/1/2049
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Idaho Housing and Finance Association, Sales Tax Revenue Bonds (Series 2025A), 5.000%,
8/15/2049
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Chicago, IL Board of Education, Dedicated Capital Improvement Tax Bonds (Series 2023),
5.750%, 4/1/2048
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Chicago, IL Water Revenue, Second Lien Water Revenue Bonds (Series 2023A), (Assured
Guaranty, Inc. INS),
5.250%, 11/1/2053
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Chicago, IL Water Revenue, Water Revenue Bonds (Series 2026A), 5.000%, 11/1/2064
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DuPage County, IL (Naperville Campus LLC), Special Tax Bonds (Series 2006), 5.625%,
3/1/2036
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Illinois Finance Authority (Admiral at the Lake), Revenue Refunding Bonds (Series
2017), (Original Issue Yield: 5.500%),
5.250%, 5/15/2054
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Illinois State, UT GO Bonds (Series 2020B), (Original Issue Yield: 5.850%), 5.750%,
5/1/2045
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Illinois State, UT GO Bonds (Series 2022C), 5.125%, 10/1/2043
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Illinois State, UT GO Bonds (Series 2022C), 5.500%, 10/1/2045
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Illinois State, UT GO Bonds (Series 2023C), 5.000%, 12/1/2047
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Illinois State, UT GO Refunding Bonds (Series 2018A), 5.000%, 10/1/2026
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Metropolitan Pier & Exposition Authority, IL, McCormick Place Expansion Project Bonds
(Series 2015A), (Original Issue Yield:
5.060%), 5.000%, 6/15/2053
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Sales Tax Securitization Corp., IL, Sales Tax Securitization Bonds (Series 2022A),
4.000%, 1/1/2042
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Indiana State Finance Authority (CWA Authority, Inc.), First Lien Wastewater Utility
Revenue Bonds (Series 2022B),
5.250%, 10/1/2052
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Indianapolis, IN Local Public Improvement Bond Bank (Indiana Convention Center Hotel),
Senior Revenue Bonds
(Series 2023E), (Original Issue Yield: 5.880%), 5.750%, 3/1/2043
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Whiting, IN Environmental Facilities (BP PLC), Revenue Bonds (Series 2008), 4.200%,
Mandatory Tender 6/21/2035
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Iowa Finance Authority (Iowa Fertilizer Co. LLC), Midwestern Disaster Area Revenue
Refunding Bonds (Series 2022), (United
States Treasury PRF 12/1/2032@100), 5.000%, 12/1/2050
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Iowa Finance Authority (Iowa Fertilizer Co. LLC), Midwestern Disaster Area Revenue
Refunding Bonds (Series 2022), (United
States Treasury PRF 12/1/2032@100), 5.000%, Mandatory Tender 12/1/2042
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Semi-Annual Shareholder Report
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MUNICIPAL BONDS—continued
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Wyandotte County, KS Unified Government Utility System Revenue, Improvement & Refunding
Revenue Bonds
(Series 2014-A), 5.000%, 9/1/2044
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Kentucky Economic Development Finance Authority (Miralea), Revenue Bonds (Series 2016A),
5.000%, 5/15/2031
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Louisiana Stadium and Exposition District, Senior Revenue Bonds (Series 2023A), 5.000%,
7/1/2048
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Baltimore, MD (East Baltimore Research Park), Special Obligation Revenue Refunding
Bonds (Series 2017A),
5.000%, 9/1/2038
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Maryland State Economic Development Corp. (Core Natural Resources, Inc.), Port Facilities
Refunding Revenue Bonds
(Series 2025), 5.000%, Mandatory Tender 3/27/2035
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Westminster, MD (Lutheran Village at Miller’s Grant, Inc.), Revenue Bonds (Series 2014A), 6.000%, 7/1/2034
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Commonwealth of Massachusetts, UT GO Consolidated Loan Bonds (Series 2022C), 5.000%,
11/1/2048
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Commonwealth of Massachusetts, UT GO Consolidated Loan Bonds (Series 2023C), 5.000%,
8/1/2044
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Massachusetts School Building Authority, Subordinated Dedicated Sales Tax Bonds (Series
2025A), 5.250%, 2/15/2050
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Michigan State Finance Authority (McLaren Health Care Corp.), Revenue Bonds (Series
2019A), 4.000%, 2/15/2044
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Michigan State Finance Authority (Provident Group - HFH Energy LLC), Act 38 Facilities
Senior Revenue Bonds (Series 2024),
5.500%, 2/28/2049
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Michigan State Finance Authority (Trinity Healthcare Credit Group), (Series MI 2019A),
4.000%, 12/1/2049
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Wayne County, MI Airport Authority, Airport Revenue Bonds (Series 2025A), 5.500%,
12/1/2050
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Kansas City, MO Redevelopment Authority (Kansas City Convention Center Headquarters
Hotel CID), Revenue Bonds
(Series 2018B), (Original Issue Yield: 5.079%), 5.000%, 2/1/2050
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Kansas City, MO Redevelopment Authority (Kansas City Convention Center Headquarters
Hotel CID), Revenue Bonds
(Series 2018B), 5.000%, 2/1/2040
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Clark County, NV, Highway Revenue Improvement and Refunding Bonds (Series 2025), 4.000%,
7/1/2041
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Nevada State, LT GO Bonds (Series 2023A), 5.000%, 5/1/2042
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National Finance Authority, NH (Attwater Project Texas MUD No. 38), Special Revenue
Capital Appreciation Bonds
(Series 2024), (Original Issue Yield: 6.250%), 6.250%, 4/1/2032
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National Finance Authority, NH (Grand Prairie Project, Harris County, TX MUD), Special
Revenue Bonds (Series 2024),
(Original Issue Yield: 6.000%), 5.875%, 12/15/2032
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National Finance Authority, NH, Municipal Certificates (Series 2024-1 Class A), (Original
Issue Yield: 4.510%),
4.250%, 7/20/2041
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New Jersey EDA (New Jersey State), North Portal Bridge Project (Series 2022), 5.250%,
11/1/2041
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New Jersey EDA (New Jersey State), North Portal Bridge Project (Series 2022), 5.250%,
11/1/2047
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New Jersey State Educational Facilities Authority (New Jersey State), Higher Education
Capital Improvement Fund
(Series 2023A), 4.625%, 9/1/2048
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New Jersey State Transportation Trust Fund Authority (New Jersey State), Transportation
Program Bonds (Series 2023BB),
5.000%, 6/15/2046
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New Jersey State Transportation Trust Fund Authority (New Jersey State), Transportation
Program Bonds (Series 2025AA),
5.000%, 6/15/2050
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New Jersey State Transportation Trust Fund Authority (New Jersey State), Transportation
Program Bonds (Series 2025AA),
5.000%, 6/15/2055
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Semi-Annual Shareholder Report
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MUNICIPAL BONDS—continued
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New Jersey State Transportation Trust Fund Authority (New Jersey State), Transportation
System Bonds (Series 2022CC),
(United States Treasury PRF 12/15/2032@100), 5.500%, 6/15/2050
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Build NYC Resource Corporation (KIPP NYC Canal West), Revenue Bonds (Series 2022),
5.250%, 7/1/2057
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Metropolitan Transportation Authority, NY (MTA Transportation Revenue), Transportation
Revenue Green Bonds
(Series 2020C-1), 5.250%, 11/15/2055
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New York City Housing Development Corp., Multifamily Housing Revenue Bonds (Series
2024B-1), 4.750%, 11/1/2054
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New York City, NY Municipal Water Finance Authority, Water and Sewer System Second
General Resolution Revenue Bonds
(Series 2024CC-1), 5.250%, 6/15/2054
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New York City, NY Transitional Finance Authority, Future Tax Secured Subordinate Bonds
(Series 2023F-1), (Original Issue
Yield: 4.450%), 4.000%, 2/1/2051
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New York City, NY, UT GO Bonds (Series 2025E), 5.000%, 8/1/2054
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New York Liberty Development Corporation (3 World Trade Center), Revenue Bonds (Series
2014 Class 1),
5.000%, 11/15/2044
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New York State Dormitory Authority (New York State Sales Tax Revenue Bond Fund), Revenue
Bonds (Series 2024A),
5.000%, 3/15/2049
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New York State Thruway Authority (New York State Personal Income Tax Revenue Bond
Fund), Revenue Bonds (Series 2022A),
4.000%, 3/15/2051
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New York Transportation Development Corporation (JFK International Air Terminal LLC),
Special Facilities Revenue Bonds
(Series 2020C), 4.000%, 12/1/2040
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Suffolk County, NY Off-Track Betting Corp., Revenue Bonds (Series 2024), (Original
Issue Yield: 5.076%), 5.000%, 12/1/2034
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Suffolk County, NY Off-Track Betting Corp., Revenue Bonds (Series 2024), (Original
Issue Yield: 5.865%), 5.750%, 12/1/2044
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Muskingum County, OH (Genesis Healthcare Corp.), Hospital Facilities Revenue Bonds
(Series 2013), 5.000%, 2/15/2027
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Ohio State Water Development Authority, Drinking Water Assistance Fund Revenue Bonds
(Series 2025A), 5.250%, 12/1/2045
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Oregon State Housing and Community Services Department, Single Family Mortgage Program
(Series 2023A),
4.600%, 7/1/2043
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Oregon State, UT GO Bonds (Series 2025A), 5.250%, 5/1/2045
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Allegheny County, PA Hospital Development Authority (Allegheny Health Network Obligated
Group), Revenue Bonds
(Series 2018A), 5.000%, 4/1/2047
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Cumberland County, PA Municipal Authority (Diakon Lutheran Social Ministries), Revenue
Bonds (Series 2015),
5.000%, 1/1/2038
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Northampton County, PA General Purpose Authority (St. Luke’s University Health Network), Hospital Revenue Bonds
(Series 2016A), 4.000%, 8/15/2040
|
|
|
|
|
Pennsylvania State Economic Development Financing Authority (UPMC Health System),
Revenue Bonds (Series 2023A-2),
4.000%, 5/15/2053
|
|
|
|
|
Pennsylvania State Turnpike Commission, Subordinate Revenue Bonds (Series 2019A),
5.000%, 12/1/2044
|
|
|
|
|
Pennsylvania State Turnpike Commission, Turnpike Revenue Bonds (Series 2022B), 5.250%,
12/1/2052
|
|
|
|
|
Upper St Clair TWP PA School District, UT GO Bonds (Series 2025), 4.000%, 10/1/2043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Bonds (Series 2019A),
(Original Issue Yield: 5.154%),
5.000%, 7/1/2058
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Bonds (Series 2019A-1),
4.750%, 7/1/2053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Carolina Jobs-EDA (Novant Health, Inc.), Health Care Facilities Revenue Bonds
(Series 2024A), 5.500%, 11/1/2054
|
|
Semi-Annual Shareholder Report
|
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|
|
MUNICIPAL BONDS—continued
|
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|
|
|
|
|
|
|
|
South Carolina Jobs-EDA (Seafields at Kiawah Island), Retirement Community Revenue
Bonds TEMPS-75 (Series 2023B-1),
5.750%, 11/15/2029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chattanooga, TN Health, Educational & Housing Facility Board (CommonSpirit Health),
Revenue Bonds (Series 2019A),
5.000%, 8/1/2049
|
|
|
|
|
Metropolitan Nashville, TN Airport Authority, Airport Improvement Revenue Bonds (Series
2022A), 5.000%, 7/1/2052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Austin, TX Water and Wastewater System Revenue Refunding Bonds (Series 2022), 5.000%,
11/15/2052
|
|
|
|
|
Clifton, TX Higher Education Finance Corp. (Idea Public Schools), Education Revenue
and Refunding Bonds (Series 2025),
(Texas Permanent School Fund Guarantee Program GTD), 5.000%, 8/15/2045
|
|
|
|
|
Conroe, TX Independent School District, UT GO Tax School Building Bonds (Series 2025),
(Texas Permanent School Fund
Guarantee Program GTD), 4.000%, 2/15/2050
|
|
|
|
|
Eagle Mountain-Saginaw, TX Independent School District, UT GO School Building Bonds
(Series 2025), (Texas Permanent
School Fund Guarantee Program GTD), 5.250%, 8/15/2050
|
|
|
|
|
Fort Bend, TX Independent School District, UT GO School Building and Refunding Bonds
(Series 2025A), (Texas Permanent
School Fund Guarantee Program GTD), 5.250%, 8/15/2055
|
|
|
|
|
Harris County, TX IDC (Energy Transfer LP), Marine Terminal Refunding Revenue Bonds
(Series 2023), 4.050%, Mandatory
Tender 6/1/2033
|
|
|
|
|
Houston, TX (Houston, TX Convention & Entertainment Facilities Department), First
Lien Hotel Occupancy Tax Special
Revenue and Refunding Bonds (Series 2026C), (Assured Guaranty, Inc. INS), 5.000%,
9/1/2045
|
|
|
|
|
Houston, TX, Public Improvement and Refunding Bonds (Series 2024A), (Original Issue
Yield: 4.380%), 4.125%, 3/1/2051
|
|
|
|
|
San Antonio, TX Electric & Gas System (CPS Energy), Revenue Bonds (Series 2024A),
5.250%, 2/1/2049
|
|
|
|
|
Texas Municipal Gas Acquisition & Supply Corp. IV, Gas Supply Revenue Bonds (Series
2023B), (BP PLC GTD), 5.500%,
Mandatory Tender 1/1/2034
|
|
|
|
|
Texas Municipal Gas Acquisition & Supply Corp. V, Gas Supply Revenue Bonds (Series
2026), (Citigroup, Inc. GTD),
5.000%, 4/1/2036
|
|
|
|
|
Texas State Transportation Commission (State Highway 249 System), First Tier Toll
Revenue Bonds (Series 2019A),
5.000%, 8/1/2057
|
|
|
|
|
Texas Water Development Board (Texas State Water Implementation Revenue Fund), Revenue
Bonds (Series 2025),
4.750%, 10/15/2055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Downtown Revitalization Public Infrastructure District, UT, SEG Redevelopment Project
First Lien Sales Tax Revenue Bonds
(Series 2025A), (Assured Guaranty, Inc. INS), 5.250%, 6/1/2041
|
|
|
|
|
Salt Lake City, UT Department of Airports, Airport Revenue Bonds (Series 2025B), 5.500%,
7/1/2050
|
|
|
|
|
Salt Lake City, UT Department of Airports, Airport Revenue Bonds (Series 2025B), 5.500%,
7/1/2055
|
|
|
|
|
Utah State Board of Higher Education (University of Utah), General Revenue Bonds (Series
2022A), 4.000%, 8/1/2051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chesapeake Bay, VA Bridge & Tunnel District, First Tier General Resolution Revenue
Bonds (Series 2016), 5.000%, 7/1/2046
|
|
|
|
|
James City County, VA EDA (Williamsburg Landing), Residential Care Facility Revenue
Bonds (Series 2024A),
6.875%, 12/1/2058
|
|
|
|
|
Virginia Beach, VA Development Authority (Westminster-Canterbury on Chesapeake Bay),
Residential Care Facility Revenue
Bonds (Series 2023A), 7.000%, 9/1/2053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington State Housing Finance Commission (Presbyterian Retirement Communities Northwest),
Revenue Bonds
(Series 2016), 5.000%, 1/1/2031
|
|
|
|
|
Washington State Housing Finance Commission (Rockwood Retirement Communities), Nonprofit
Housing Revenue &
Refunding Revenue Bonds (Series 2020A), 5.000%, 1/1/2041
|
|
|
|
|
Washington State, UT GO Bonds (Series 2024C), 5.000%, 2/1/2049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public Finance Authority, WI (Aurora Integrated Oncology Foundation), Revenue Bonds
(Series 2023), 9.000%, 11/1/2028
|
|
Semi-Annual Shareholder Report
|
|
|
|
|
|
|
|
MUNICIPAL BONDS—continued
|
|
|
|
|
|
|
|
|
|
Public Finance Authority, WI (LVHN CHP JV, LLC), Revenue Bonds (Series 2022A), 7.250%,
12/1/2042
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority (Ascension Health Alliance Senior
Credit Group), Revenue Bonds
(Series 2024A), 4.000%, 11/15/2046
|
|
|
|
|
|
|
|
|
|
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $150,109,729)
|
|
|
|
|
SHORT-TERM MUNICIPALS—1.1%
|
|
|
|
|
|
|
|
|
|
Ohio State Higher Educational Facility Commission (Cleveland Clinic), (Series 2013B-2)
Daily VRDNs, (TD Bank, N.A. LIQ),
2.800%, 6/1/2026
|
|
|
|
|
|
|
|
|
|
Delaware County, PA IDA (United Parcel Service, Inc.), (Series 2015) Daily VRDNs,
(United Parcel Service, Inc. GTD),
2.850%, 6/1/2026
|
|
|
|
|
TOTAL SHORT-TERM MUNICIPALS
(IDENTIFIED COST $1,650,000)
|
|
|
|
|
TOTAL INVESTMENT IN SECURITIES—100%
(IDENTIFIED COST $151,759,729)3
|
|
|
|
|
OTHER ASSETS AND LIABILITIES - NET4
|
|
|
|
|
LIQUIDATION VALUE OF VARIABLE RATE MUNICIPAL TERM PREFERRED SHARES (VMTPS)
|
|
|
|
|
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
|
|
At May 31, 2026, the Fund held no securities that are subject to the federal alternative
minimum tax (AMT).
|
|
Denotes a restricted security that either: (a) cannot be offered for public sale without
first being registered, or availing of an exemption from registration, under
the Securities Act of 1933; or (b) is subject to a contractual restriction on public
sales. At May 31, 2026, these restricted securities amounted to $11,672,109,
which represented 12.0% of net assets.
|
|
|
Current rate and current maturity or next reset date shown for floating rate notes
and variable rate notes/demand instruments. Certain variable rate securities are
not based on a published reference rate and spread but are determined by the issuer
or agent and are based on current market conditions. These securities do
not indicate a reference rate and spread in their description above.
|
|
|
The cost of investments for federal tax purposes amounts to $151,558,317.
|
|
|
Assets, other than investments in securities, less liabilities. See Statement of Assets
and Liabilities.
|
Note: The categories of investments are shown as a percentage of total market value
at May 31, 2026.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the
risk associated with investing in those securities.
Semi-Annual Shareholder Report
As of May 31, 2026, all investments of the Fund utilized Level 2 inputs in valuing the Fund’s assets carried at fair value.
The following acronym(s) are used throughout this portfolio:
|
|
|
|
—Community Development District
|
|
|
—Economic Development Authority
|
|
|
|
|
|
|
|
|
—Industrial Development Authority
|
|
|
—Industrial Development Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—Tax Exempt Mandatory Paydown Securities
|
|
|
|
|
|
—Variable Rate Demand Notes
|
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
Financial Highlights
(For a Common Share Outstanding Throughout Each Period)
|
|
Six Months
Ended
(unaudited)
5/31/2026
|
|
|
|
|
|
|
|
|
Net Asset Value, Beginning of Period
|
|
|
|
|
|
|
Income From Investment Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
|
|
|
|
Distributions to auction market preferred shareholders from net investment income2
|
|
|
|
|
|
|
Total from Investment Operations
|
|
|
|
|
|
|
Less Distributions to Common Shareholders:
|
|
|
|
|
|
|
Distributions from net investment income
|
|
|
|
|
|
|
Increase From Common Share Tender and Repurchase
|
|
|
|
|
|
|
Net Asset Value, End of Period
|
|
|
|
|
|
|
Market Price, End of Period
|
|
|
|
|
|
|
Total Return at Net Asset Value4
|
|
|
|
|
|
|
Total Return at Market Price5
|
|
|
|
|
|
|
Ratios to Average Net Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses excluding all interest and trust expenses8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense waiver/reimbursement11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000 omitted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Semi-Annual Shareholder Report
Asset Coverage Requirements for Investment Company Act of 1940—Preferred Shares
|
|
|
|
Minimum
Required
Asset
Coverage
Per Share
|
Involuntary
Liquidating
Preference
Per Share
|
Average
Market
Value
Per Share13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share numbers have been calculated using the average shares method.
|
|
|
The amounts shown are based on Common Share equivalents.
|
|
|
Represents less than $0.01.
|
|
|
Total Return at Net Asset Value is the combination of changes in the Common Share
net asset value, reinvested dividend income and reinvested capital gains
distributions at net asset value, if any, and does not reflect the sales charge, if
applicable.
|
|
|
Total Return at Market Price is the combination of changes in the market price per
share and the effect of reinvested dividend income and reinvested capital gains
distributions, if any, at the average price paid per share at the time of the reinvestment.
|
|
|
Amount does not reflect net expenses incurred by investment companies in which the
Fund may invest.
|
|
|
Computed on an annualized basis.
|
|
|
Ratios do not reflect the effect of interest expense on variable rate municipal term
preferred shares, dividend payments to preferred shareholders and any
associated commission costs, or interest and trust expenses on tender option bond
trusts.
|
|
|
The net expense ratio is calculated without reduction for expense offset arrangements.
The net expense ratio is 0.99% for the six months ended May 31, 2026
and for the years ended November 30, 2025, 2024, and 2023, respectively, after taking
into account these expense reductions.
|
|
|
Ratios reflect reductions for dividend payments to preferred shareholders.
|
|
|
This expense decrease is reflected in both the net expense and the net investment
income ratios shown above. Amount does not reflect expense waiver/
reimbursement recorded by investment companies in which the Fund may invest.
|
|
|
Securities that mature are considered sales for purposes of this calculation.
|
|
|
Represents initial public offering price.
|
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
Statement of Assets and Liabilities
May 31, 2026 (unaudited)
|
|
|
Investment in securities, at value (identified cost $151,759,729)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for investments purchased
|
|
Income distribution payable - Common Shares
|
|
|
|
|
|
|
|
Payable for investment adviser fee (Note 4)
|
|
Payable for administrative fee (Note 4)
|
|
Accrued expenses (Note 4)
|
|
TOTAL ACCRUED LIABILITIES
|
|
|
|
|
Variable Rate Municipal Term Preferred Shares (VMTPS) (1,147 shares authorized and
issued at $50,000 per share)
|
|
|
|
|
Net assets applicable to Common Shares
|
|
Net Assets Applicable to Common Shares Consists of:
|
|
|
|
|
Total distributable earnings (loss)
|
|
NET ASSETS APPLICABLE TO COMMON SHARES
|
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
|
|
$97,356,119 ÷ 7,818,701 shares outstanding, ($0.01 par value, unlimited shares authorized)
|
|
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
Statement of Operations
Six Months Ended May 31, 2026 (unaudited)
|
|
|
|
|
|
|
|
|
Investment adviser fee (Note 4)
|
|
Administrative fee (Note 4)
|
|
|
|
|
|
|
|
Directors’/Trustees’ fees (Note 4)
|
|
|
|
|
|
|
|
Portfolio accounting fees
|
|
|
|
|
Interest expense - VMTPS (Note 6)
|
|
|
|
|
|
|
|
|
|
|
Waiver of investment adviser fee (Note 4)
|
|
Reduction of custodian fees (Note 5)
|
|
TOTAL WAIVER AND REDUCTION
|
|
|
|
|
|
|
|
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
|
|
Net realized gain on investments
|
|
Net realized loss on futures contracts
|
|
Net change in unrealized appreciation of investments
|
|
Net realized and unrealized gain (loss) on investments and futures contracts
|
|
Change in net assets resulting from operations applicable to Common Shares
|
|
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
Statement of Changes in Net Assets
|
|
Six Months
Ended
(unaudited)
5/31/2026
|
|
Increase (Decrease) in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation
|
|
|
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS APPLICABLE TO COMMON SHARES
|
|
|
Distribution to Common Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
Statement of Cash Flows
May 31, 2026 (unaudited)
|
|
|
Change in net assets resulting from operations applicable to common shares
|
|
Adjustments to Reconcile Change in Net Assets Resulting from Operations to Net Cash
Provided by Operating Activities:
|
|
Purchases of investment securities
|
|
Proceeds from sale of investment securities
|
|
Net sale of short-term investment securities
|
|
Decrease in income receivable
|
|
Increase in payable for investments purchased
|
|
Decrease in interest payable—VMTPS
|
|
Decrease in payable for portfolio accounting fees
|
|
Increase in payable for investment adviser fee
|
|
Increase in payable for administrative fee
|
|
Decrease in payable for auditing fees
|
|
Increase in payable for legal fees
|
|
Decrease in accrued expenses
|
|
Net amortization of premium
|
|
Net realized gain on investments
|
|
Net change in unrealized appreciation of investments
|
|
Net Cash Provided By Operating Activities
|
|
|
|
|
Redemption of VMTPS, at liquidation value
|
|
Income distributions to participants
|
|
Net Cash Used In Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
Cash paid for interest expense during the period ended May 31, 2026, was $1,205,489.
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder Report
Notes to Financial Statements
Federated Hermes Premier Municipal Income Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, closed-end management investment company. The investment objective of the Fund is to provide current income exempt from federal income tax, including the federal AMT.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed
by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting
principles (GAAP).
In calculating its net asset value (NAV), the Fund generally values investments as
follows:
■
Fixed-income securities are fair valued using price evaluations provided by a pricing
service approved by Federated Investment Management Company (the “Adviser”).
■
Shares of other mutual funds or non-exchange-traded investment companies are valued
based upon their reported NAVs, or NAV per share practical expedient, as applicable.
■
Derivative contracts listed on exchanges are valued at their reported settlement or
closing price, except that options are valued at the mean of closing bid and ask quotations.
■
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations
provided by a pricing service approved by the Adviser.
■
For securities that are fair valued in accordance with procedures established by and
under the general supervision of the Adviser, certain factors may be considered such as: the last traded or purchase price of the
security, information obtained by contacting the issuer or dealers, analysis of the issuer’s financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security
is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of
a relevant index, or other factors including but not limited to industry changes and relevant government actions.
If any price, quotation, price evaluation or other pricing source is not readily available
when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an
investment within a reasonable period of time as set forth in the Adviser’s valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser’s valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described
below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment
at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different.
Fair Valuation Procedures
Pursuant to Rule 2a-5 under the Act, the Fund’s Board of Trustees (the “Trustees”) has designated the Adviser as the Fund’s valuation designee to perform any fair value determinations for securities and other assets
held by the Fund. The Adviser is subject to the Trustees’ oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser’s fair value determinations.
The Adviser, acting through its Valuation Committee, is responsible for determining
the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser’s affiliated companies and determines fair value and oversees the calculation of the
NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain
investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service
evaluations including periodic reviews of third-party pricing services’ policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services,
and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations
are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures
adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser’s fair valuation and significant events procedures as part of the Fund’s compliance program and will review any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields
or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported
transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price
evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally
uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations
and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures
adopted by the Adviser.
Semi-Annual Shareholder Report
Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and
losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Distributions
to common shareholders, if any, are recorded on the ex-dividend date and are declared and paid monthly. In addition, distributions
of capital gains, if any, are declared and paid at least annually. Non-cash dividends included in dividend income, if any, are recorded at
fair value. Amortization/accretion of premium and discount is included in investment income. The detail of the total fund expense waiver
and reduction of $205,839 is disclosed in Note 5 and Note 6.
It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the “Code”) and to distribute to shareholders each year substantially all of its income. Accordingly, no provision
for federal income tax is necessary. As of and during the six months ended May 31, 2026, the Fund did not have a liability for any uncertain
tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement
of Operations. As of May 31, 2026, tax years 2022 through 2025 remain subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the State of Delaware.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records
when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available
to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and
begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the
failure of counterparties to perform under the contract.
The Fund purchases and sells financial futures contracts to manage duration, market
and yield curve risks. Upon entering into a financial futures contract with a broker, the Fund is required to deposit with a broker, either
a specified amount of cash, which is shown as due from broker in the Statement of Assets and Liabilities, or government securities.
Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund
recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract
may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees
the futures contracts against default.
At May 31, 2026, the Fund had no outstanding futures contracts.
The average notional value of long futures contracts held by the Fund throughout the
period was $488,036. This is based on amounts held as of each month-end throughout the six-month period.
The Fund may purchase securities which are considered restricted. Restricted securities
are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of
an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases,
when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer’s expense, either upon demand by the Fund or in connection with another registered offering of
the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted
securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund’s restricted securities, like other securities, are priced in accordance with procedures established by and under
the general supervision of the Adviser.
Additional information on restricted securities held at May 31, 2026, is as follows:
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Atlanta, GA Development Authority (Westside Gulch Area Project (Spring Street Atlanta)),
Senior Revenue Bonds
(Series 2024A-1), 5.000%, 4/1/2034
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California School Finance Authority (KIPP LA), School Facility Revenue Bonds (Series
2015A), 5.000%, 7/1/2035
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Downtown Revitalization Public Infrastructure District, UT, SEG Redevelopment Project
First Lien Sales Tax Revenue
Bonds (Series 2025A), (Assured Guaranty, Inc. INS), 5.250%, 6/1/2041
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Florida Local Government Finance Commission (Ponte Vedra Pine Company LLC), Fleet
Landing at Nocatee Senior
Living Revenue Bonds (Series 2025A), (Original Issue Yield: 6.650%), 6.625%, 11/15/2045
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Kansas City, MO Redevelopment Authority (Kansas City Convention Center Headquarters
Hotel CID), Revenue
Bonds (Series 2018B), (Original Issue Yield: 5.079%), 5.000%, 2/1/2050
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Kansas City, MO Redevelopment Authority (Kansas City Convention Center Headquarters
Hotel CID), Revenue
Bonds (Series 2018B), 5.000%, 2/1/2040
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Maricopa County, AZ, IDA (Paradise Schools), Revenue Refunding Bonds, 5.000%, 7/1/2036
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Maryland State Economic Development Corp. (Core Natural Resources, Inc.), Port Facilities
Refunding Revenue
Bonds (Series 2025), 5.000%, Mandatory Tender 3/27/2035
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Semi-Annual Shareholder Report
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National Finance Authority, NH (Attwater Project Texas MUD No. 38), Special Revenue
Capital Appreciation Bonds
(Series 2024), (Original Issue Yield: 6.250%), 6.250%, 4/1/2032
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National Finance Authority, NH (Grand Prairie Project, Harris County, TX MUD), Special
Revenue Bonds
(Series 2024), (Original Issue Yield: 6.000%), 5.875%, 12/15/2032
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New York Liberty Development Corporation (3 World Trade Center), Revenue Bonds (Series
2014 Class 1),
5.000%, 11/15/2044
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Pima County, AZ IDA (La Posada at Pusch Ridge), Senior Living Revenue Bonds (Series
2022A), 6.750%, 11/15/2042
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Public Finance Authority, WI (Aurora Integrated Oncology Foundation), Revenue Bonds
(Series 2023),
9.000%, 11/1/2028
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Public Finance Authority, WI (LVHN CHP JV, LLC), Revenue Bonds (Series 2022A), 7.250%,
12/1/2042
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South Carolina Jobs-EDA (Seafields at Kiawah Island), Retirement Community Revenue
Bonds TEMPS-75
(Series 2023B-1), 5.750%, 11/15/2029
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Washington State Housing Finance Commission (Presbyterian Retirement Communities Northwest),
Revenue Bonds
(Series 2016), 5.000%, 1/1/2031
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Washington State Housing Finance Commission (Rockwood Retirement Communities), Nonprofit
Housing Revenue
& Refunding Revenue Bonds (Series 2020A), 5.000%, 1/1/2041
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Additional Disclosure Related to Derivative Instruments
The Effect of Derivative Instruments on the Statement of Operations for the Six Months
Ended May 31, 2026
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
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The preparation of financial statements in conformity with GAAP requires management
to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial
statements. Actual results could differ materially from those estimated. The Fund applies investment company accounting and reporting guidance.
3. FEDERAL TAX INFORMATION
At May 31, 2026, the cost of investments for federal tax purposes was $151,558,317.
The net unrealized appreciation of investments for federal tax purposes was $2,555,555. This consists of unrealized appreciation from
investments for those securities having an excess of value over cost of $3,821,649 and unrealized depreciation from investments for those
securities having an excess of cost over value of $1,266,094.
As of November 30, 2025, the Fund had a capital loss carryforward of $17,970,195 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted
by the Code, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund
of any liability for federal income tax. Pursuant to the Code, these net capital losses retain their character as either short-term or
long-term and do not expire.
The following schedule summarizes the Fund’s capital loss carryforwards:
4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment management agreement between the Fund and the Adviser provides for
an annual management fee, payable daily, at the annual rate of 0.55% of the Fund’s managed assets.
Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily
choose to waive any portion of its fee for competitive reasons such as to maintain the Fund’s expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the six months ended May 31, 2026, the Adviser voluntarily waived $203,475 of
its fee.
Semi-Annual Shareholder Report
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement,
provides the Fund with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Hermes Funds subject to a fee under the Administrative Services Agreement. The fee
paid to FAS is based on the average daily net assets of the Investment Complex as specified below:
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Average Daily Net Assets
of the Investment Complex
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on assets up to $50 billion
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on assets over $50 billion
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Subject to the terms described in the Expense Limitation note, FAS may voluntarily
choose to waive any portion of its fee. For the six months ended May 31, 2026, the annualized fee paid to FAS was 0.080% of average daily
net assets of the Fund.
In addition, FAS may charge certain out-of-pocket expenses to the Fund.
The Adviser and certain of its affiliates (which may include FAS) on their own initiative
have agreed to waive certain amounts of their respective fees and/or reimburse expenses. The total annual fund operating expenses
(as shown in the financial highlights, excluding any interest and trust expenses on inverse floater trusts, interest expense on variable
rate municipal term preferred shares (VMTPS) and commission costs on preferred shareholder dividend payments) paid by the Fund will
not exceed 0.99%. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these
arrangements, no assurance can be given that future total annual operating expenses will not be more or less than 0.99%.
During the six months ended May 31, 2026, the Fund engaged in purchase and sale transactions
with funds that have a common investment adviser (or affiliated investment advisers), common Trustees and/or common
Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $14,375,000 and $14,770,000,
respectively. Net realized gain (loss) recognized on these transactions was $0.
Directors’/Trustees’ and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of
certain of the above companies. To efficiently facilitate payment, Independent Directors’/Trustees’ fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due
course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses
may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of
Operations, respectively.
Through arrangements with the Fund’s custodian, net credits realized as a result of uninvested cash balances were used to offset custody expenses. For the six months ended May 31, 2026, the Fund’s expenses were offset by $2,364 under these arrangements.
Variable Rate Municipal Term Preferred Shares
The Fund’s VMTPS are a floating-rate form of preferred shares with dividends (which are treated as interest payments for financial reporting purposes) that reset weekly based on a fixed spread (subject to certain
adjustments) above the Securities Industry and Financial Markets Association Municipal Swap Index. The VMTPS have a mandatory redemption
date of October 18, 2049, as well as potential “Early Term Redemption Dates” (as such term is defined in the Statement Establishing and Fixing the Rights and Preferences of Variable Rate Municipal Term Preferred Shares (the “Statement”)), including on each third anniversary of their issuance.
The Fund designated a special terms period, pursuant to the terms of the Statement,
which commenced on March 13, 2025 and will end on June 13, 2028 (the “Special Terms Period”), and terminated early the then-current three-year period of the VMTPS. For the Special Terms Period, the fixed spread used to calculate the distribution rate on
the VMTPS was increased from 0.91% to 1.25%, due to rising interest rates. The designation of the Special Terms Period changed the next
Early Term Redemption Date from June 2025 to June 2028.
In the Fund’s Statement of Assets and Liabilities, the aggregate liquidation value of the VMTPS is shown as a liability since the shares have a stated mandatory redemption date. VMTPS are senior in priority to the Fund’s outstanding common shares as to payment of dividends. On April 2, 2026, the Fund redeemed 200 outstanding VMTPS at $50,000 per
VMTP. The average liquidation value outstanding and average annualized dividend rate of VMTPS for the Fund during the
six months ended May 31, 2026, were $64.1 million and 3.6%, respectively. Dividends paid on VMTPS are treated as interest expense and
recorded as incurred. For the six months ended May 31, 2026, interest expense on VMTPS amounted to $1,153,549.
Whenever preferred shares (including VMTPS) are outstanding, common shareholders will
not be entitled to receive any distributions from the Fund unless all dividends and distributions due on the preferred shares have
been paid, the Fund satisfies the 200% asset coverage requirement after giving effect to the distribution, and certain other requirements
imposed by any nationally recognized statistical ratings organizations rating the preferred shares have been met.
Semi-Annual Shareholder Report
7. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government securities
and short-term obligations, for the six months ended May 31, 2026, were as follows:
An operating segment is defined as a component of a public entity that engages in
business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess
its performance, and has discrete financial information available. A management committee of the Adviser acts as the CODM. The
Fund represents a single operating segment, as the CODM monitors the operating results of the Fund as a whole and the strategic asset
allocation is determined based on the investment objective of the Fund and executed by the Fund’s portfolio management team. The financial information in the form of the Fund’s portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions) which is reviewed by the CODM to assess the Fund’s performance in comparison to the Fund’s benchmarks and to make resource allocation decisions for the Fund’s single segment is consistent with the information presented in these financial statements. Segment assets are reflected on the accompanying Statement of Assets and Liabilities as “total assets” and significant segment expenses are listed on the accompanying Statement of Operations.
Under the Fund’s organizational documents, its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund (other than liabilities arising out of
their willful misfeasance, bad faith, gross negligence or reckless disregard of their duties to the Fund). In addition, in the normal course
of business, the Fund provides certain indemnifications under arrangements with third parties. Typically, obligations to indemnify a third
party arise in the context of an arrangement entered into by the Fund under which the Fund agrees to indemnify such third party for certain
liabilities arising out of actions taken pursuant to the arrangement, provided the third party’s actions are not deemed to have breached an agreed-upon standard of care (such as willful misfeasance, bad faith, gross negligence or reckless disregard of their duties under the contract). 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 arisen. The Fund does not anticipate any material claims or losses pursuant to these arrangements
at this time, and accordingly expects the risk of loss to be remote.
Semi-Annual Shareholder Report
Evaluation and Approval of Advisory Contract–May 2026
federated hermes premier municipal income fund (the “Fund”)
At its meetings in May 2026 (the “May Meetings”), the Fund’s Board of Trustees (the “Board”), including those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “Independent Trustees”), reviewed and unanimously approved the continuation of the investment advisory contract between the Fund and Federated Investment Management Company (the “Adviser”) (the “Contract”) for an additional one-year term. The Board’s determination to approve the continuation of the Contract reflects the exercise of its business judgment after considering such information deemed necessary to evaluate the terms
of the Contract and to approve the continuation of the existing arrangement. The information, factors and conclusions that formed the basis for the Board’s approval are summarized below.
Information Received and Review Process
At the request of the Independent Trustees, the Fund’s Chief Compliance Officer (the “CCO”) furnished to the Board in advance of its May Meetings an independent written report regarding data related to the Fund’s management fee (the “CCO Management Fee Report”). The Board considered the CCO Management Fee Report, along with other information, in evaluating the reasonableness of the Fund’s management fee and in determining to approve the continuation of the Contract.
In addition to the CCO Management Fee Report, the Board considered information specifically
prepared in connection with the approval of the continuation of the Contract that was presented at the May
Meetings. In this regard, in the months preceding the May Meetings, the Board requested and reviewed written responses and
supporting materials prepared by the Adviser and its affiliates (collectively, “Federated Hermes”) in response to requests posed to Federated Hermes by independent legal counsel on behalf of the Independent Trustees encompassing a wide
variety of topics, including those summarized below. The Board also considered such additional matters as the Independent
Trustees deemed reasonably necessary to evaluate the Contract, which included detailed information about the
Fund and Federated Hermes furnished to the Board at its meetings throughout the year.
The Board’s consideration of the Contract included review of materials and information covering the following matters, among others: (1) a copy of the Contracts; (2) the nature, quality and extent of the
advisory and other services provided to the Fund by Federated Hermes; (3) Federated Hermes’ business and operations; (4) the Adviser’s investment philosophy, personnel and processes; (5) the Fund’s investment objective and strategies; (6) the Fund’s short-term and long-term performance - in absolute terms (both on a gross basis and net of expenses) and relative
to an appropriate group of peer funds and its benchmark; (7) the Fund’s fees and expenses, including the advisory fee and the overall expense structure of the Fund - in absolute terms and relative to an appropriate group of peer funds, with
due regard for contractual or voluntary expense limitations (if any); (8) the financial condition of Federated Hermes; (9) the Adviser’s profitability with respect to managing the Fund; and (10) the use and allocation of brokerage commissions derived from trading the Fund’s portfolio securities (if any).
The Board also considered judicial decisions concerning allegedly excessive investment
advisory fees charged to other registered funds in evaluating the Contract. Using these judicial decisions as a guide,
the Board considered several factors it deemed relevant to an adviser’s fiduciary duty with respect to its receipt of compensation from a fund, including: (1) the nature and quality of the services provided by the adviser to the fund and its shareholders,
including the performance of the fund, its benchmark and comparable funds; (2) the adviser’s cost of providing the services and the profitability to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize “economies of scale” as the fund grows larger and, if such economies of scale exist, whether they have been
appropriately shared with the fund and its shareholders or the family of funds; (4) any “fall-out” benefits that accrue to the adviser because of its relationship with the fund, including research services received from brokers that execute fund trades
and any fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fees and expenses, including
a comparison of management fees paid to the adviser with those paid by similar funds managed by the same adviser or
other advisers as well as management fees charged to institutional and other advisory clients of the same adviser for what
might be viewed as like services; and (6) the extent of care, conscientiousness and independence with which the fund’s board members perform their duties and their expertise, including whether they are fully informed about all facts the board
deems relevant to its consideration of the adviser’s services and fees. The Board considered that the Securities and Exchange Commission (“SEC”) disclosure requirements regarding the basis for a fund board’s approval of the fund’s investment advisory contract generally align with the factors listed above. The Board was guided by these factors in its evaluation
of the Contract to the extent it considered them to be appropriate and relevant, as discussed further below. The Board
considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and
working with Federated Hermes on matters relating to the oversight of the other funds advised by Federated Hermes (each, a “Federated Hermes Fund” and, collectively, the “Federated Hermes Funds”).
Semi-Annual Shareholder Report
In addition, the Board considered the preferences and expectations of Fund shareholders
and the potential disruptions of the Fund’s operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew the Contract. In particular, the Board recognized that many
shareholders likely have invested in the Fund based on the strength of Federated Hermes’ industry standing and reputation and with the expectation that Federated Hermes will have a continuing role in providing advisory services to the Fund. Thus,
the Board observed that there is a range of investment options available to the Fund’s shareholders in the marketplace and such shareholders, having had the opportunity to consider other investment options, have effectively selected Federated
Hermes by virtue of investing in the Fund.
In determining to approve the continuation of the Contract, the members of the Board
reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise
of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board’s determination to approve the continuation of the Contract was based on a comprehensive
consideration of all information provided to the Board throughout the year. The Board recognized that its evaluation
process is evolutionary and that the factors considered and the emphasis placed on relevant factors may change in recognition
of changing circumstances in the registered fund marketplace. The Independent Trustees were assisted throughout
the evaluation process by independent legal counsel. In connection with their deliberations at the May Meetings, the Independent
Trustees met separately in executive session with their independent legal counsel and without management present
to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management
representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel
to discuss the materials and presentations furnished to the Board at the May Meetings. The Board considered the
approval of the Contract for the Fund as part of its consideration of agreements for funds across the family of Federated
Hermes Funds, but its approvals were made on a fund-by-fund basis.
Nature, Extent and Quality of Services
The Board considered the nature, extent and quality of the services provided to the
Fund by the Adviser and the resources of Federated Hermes dedicated to the Fund. In this regard, the Board evaluated,
among other things, the terms of the Contract and the full range of services provided to the Fund by Federated Hermes. The Board considered the Adviser’s personnel, investment philosophy and process, investment research capabilities and
resources, trade operations capabilities, experience and performance track record. The Board reviewed the qualifications,
backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day
management of the Fund and evaluated Federated Hermes’ ability and experience in attracting and retaining qualified personnel to service the Fund. The Board considered the trading operations by the Adviser, including the execution of
portfolio transactions and the selection of brokers for those transactions. The Board also considered the Adviser’s ability to deliver competitive investment performance for the Fund when compared to the Fund’s Performance Peer Group (as defined below), which was deemed by the Board to be a useful indicator of how the Adviser is executing the Fund’s investment program. The Board also took into account information concerning the Fund’s closed-end structure, as well as the Fund’s market prices, net asset values, trading volume data, distribution rates and other matters relevant to Fund shareholders.
In addition, the Board considered the financial resources and overall reputation of
Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity,
business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds.
The Board considered the quality of Federated Hermes’ communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Federated Hermes Funds. The Board also considered that Federated
Hermes is responsible for providing the Federated Hermes Funds’ officers.
The Board received and evaluated information regarding Federated Hermes’ regulatory and compliance environment. The Board considered Federated Hermes’ compliance program and compliance history and reports from the CCO about Federated Hermes’ compliance with applicable laws and regulations, including responses to regulatory developments and any compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes’ support of the Federated Hermes Funds’ compliance control structure and the compliance-related resources devoted by Federated Hermes in support of the Fund’s obligations pursuant to Rule 38a-1 under the Investment Company Act of 1940, as amended, including Federated Hermes’ commitment to respond to rulemaking and other regulatory initiatives of the SEC. The Board considered Federated Hermes’ approach to internal audits and risk management with respect to the Federated Hermes Funds and its day-to-day oversight of the Federated Hermes Funds’ compliance with their investment objectives and policies as well as with applicable laws and regulations, noting that regulatory
and other developments had over time led, and continue to lead, to an increase in the scope of Federated Hermes’ oversight in this regard. In addition, the Board noted Federated Hermes’ commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes due to the market, regulatory and control environments
in which the Fund and its service providers operate.
Semi-Annual Shareholder Report
The Board considered Federated Hermes’ efforts to provide shareholders in the Federated Hermes Funds with a comprehensive array of funds with different investment objectives, policies and strategies.
The Board considered the expenses that Federated Hermes had incurred, as well as the entrepreneurial and other
risks assumed by Federated Hermes, in sponsoring and providing on-going services to new funds to expand these opportunities
for shareholders. The Board noted the benefits to shareholders of being part of the family of Federated Hermes
Funds.
Based on these considerations, the Board concluded that it was satisfied with the
nature, extent and quality of the services provided by the Adviser to the Fund.
Fund Investment Performance
The Board considered the investment performance of the Fund. In evaluating the Fund’s investment performance, the Board considered performance results in light of the Fund’s investment objective, strategies and risks. The Board considered detailed investment reports on, and the Adviser’s analysis of, the Fund’s performance over different time periods that were provided to the Board throughout the year and in connection with
the May Meetings. These reports included, among other items, information on the Fund’s gross and net returns, the Fund’s investment performance compared to one or more relevant categories or groups of peer funds and the Fund’s benchmark, performance attribution information and commentary on the effect of market conditions. The Board noted that
it evaluated investment performance at meetings throughout the year and received reports from Federated Hermes regarding
the performance of certain Federated Hermes Funds as well as Federated Hermes’ explanations for less favorable performance and any specific actions Federated Hermes had taken, or had determined to take, to seek to enhance
Fund investment performance and the results of those actions.
The Board also reviewed comparative information regarding the performance of other
registered funds in the category of peer funds selected by Morningstar, Inc. (“Morningstar”), an independent fund ranking organization (the “Performance Peer Group”). The Board noted the CCO’s statement that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The
Board also considered a report comparing the performance of the Fund solely to other funds with a quantitative focus
in the Performance Peer Group.
The Board also considered comparative performance data from Lipper, Inc. that was
included in reports provided to the Board throughout the year.
The Board considered that for the one-year, three-year and five-year periods ended December 31, 2025, the Fund’s performance was above the median of the Performance Peer Group.
Based on these considerations, the Board concluded that it had continued confidence in the Adviser’s overall capabilities to manage the Fund.
The Board considered the advisory fee, and overall expense structure of the Fund and
the comparative fee and expense information that had been provided in connection with the May Meetings. In this regard,
the Board was presented with, and considered, information regarding the contractual advisory fee rates, and total
expense ratios relative to the overall category of peer funds selected by Morningstar (the “Expense Peer Group”).
While mindful that courts have cautioned against giving too much weight to comparative
information concerning fees charged to funds by other advisers, the use of comparisons between the Fund and its
Expense Peer Group assisted the Board in its evaluation of the Fund’s fees and expenses. The Board focused on comparisons with other registered funds more heavily than non-registered fund products or services because such comparisons
are believed to be more relevant. The Board considered that other registered closed-end funds are the products most
like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles, and they are the
type of investment vehicle, in fact, chosen and maintained by the Fund’s shareholders. The Board noted that the range of such other registered closed-end funds’ fees and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace in which the Fund competes.
The Board reviewed the contractual advisory fee rate, net advisory fee rate and other
expenses of the Fund and noted the position of the Fund’s fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the Expense Peer Group, and the Board was
satisfied that the overall expense structure of the Fund remained competitive.
The Board reviewed the contractual advisory fee rate, net advisory fee rate and other
expenses of the Fund with the Adviser and noted the position of the Fund’s fee rates relative to its Expense Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the Expense Peer Group,
and the Board was satisfied that the overall expense structure of the Fund remained competitive.
Semi-Annual Shareholder Report
The Board also received and considered information about the nature and extent of
services offered and fees charged by Federated Hermes to other types of clients with investment strategies similar to those
of the Federated Hermes Funds, including non-registered fund clients (such as institutional separate accounts) and
third-party unaffiliated registered funds for which the Adviser or its affiliates serve as sub-adviser. The Board noted the CCO’s statement that non-registered fund clients are inherently different products due to the following differences, among
others: (i) types of targeted investors; (ii) applicable laws and regulations; (iii) legal structures; (iv) average account
sizes; (v) portfolio management techniques made necessary by different cash flows and different associated costs; (vi) the time
spent by portfolio managers and their teams (among other personnel across various departments, including legal, compliance
and risk management) in reviewing securities pricing; (vii) SEC mandated risk management programs with respect to fund
liquidity and use of derivatives; (viii) questions on regulatory reporting; (ix) a variety of different administrative
responsibilities; and (x) degrees of risk associated with management. The Board also considered information regarding the differences
in the nature of the services required for Federated Hermes to manage its proprietary registered fund business versus
managing a discrete pool of assets as a sub-adviser to another institution’s registered fund, noting the CCO’s statement that Federated Hermes generally performs significant additional services and assumes substantially greater risks in
managing the Fund and other Federated Hermes Funds than in its role as sub-adviser to an unaffiliated third-party registered
fund. The Board noted that the CCO emphasized that differences in fees for providing advisory services to other types
of clients may not be appropriate when judging the appropriateness of the Federated Hermes Funds’ advisory fees because of the different services provided.
In the case of the Fund, the Board noted that Federated Hermes does not manage any
other types of clients that are comparable to the Fund.
Based on these considerations, the Board concluded that the fees and total operating
expenses of the Fund, in conjunction with other matters considered, are reasonable in light of the services
provided.
The Board received and considered profitability information furnished by Federated
Hermes. Such profitability information included revenues reported on a fund-by-fund basis and estimates of the
allocation of expenses made on a fund-by-fund basis, using allocation methodologies specified by the CCO and described
to the Board. The Board considered the CCO’s statement that, while the cost allocation report applies consistent allocation processes for purposes of general comparison of funds, the inherent difficulties in arbitrarily allocating
costs lack precision and may cause the report to be unreliable because a single change in an allocation estimate can dramatically
alter the resulting estimate of cost and/or profitability of a Federated Hermes Fund and can produce unintended consequences.
In addition, the Board considered the CCO’s statement that the allocation methodologies used by Federated Hermes in estimating profitability for purposes of reporting to the Board in connection with the continuation of the Contract
are consistent with the methodologies previously reviewed by an independent consultant. The Board noted that
the independent consultant had previously conducted a review of the allocation methodologies and reported to the
Board that, although there is no single best method to allocate expenses, the methodologies used by Federated Hermes are reasonable.
The Board considered the CCO’s statement that the estimated profitability to the Adviser from its relationship with the Fund was not unreasonable in relation to the services provided.
The Board also reviewed information compiled by Federated Hermes comparing its profitability
information to other publicly-held fund management companies, including information regarding profitability
trends over time. The Board recognized that profitability comparisons among fund management companies are difficult
because of the variation in the type of comparative information that is publicly available, and the profitability
of any fund management company is affected by numerous factors. The Board considered the CCO’s statement that, based on such profitability information, Federated Hermes’ profit margins did not appear to be excessive and that Federated Hermes appeared financially sound, with the resources available to fulfill its contractual obligations.
The Board also considered whether the Fund might benefit from economies of scale.
The Board noted that, as a closed-end fund, the Fund has made an offering of a fixed number of common shares and (other
than the issuance of preferred shares contemplated at the time of the Fund’s initial public offering) has not made and does not expect to make additional offerings to raise more assets. As a result, the Fund is unlikely to grow materially
in size. The Board noted that, as a consequence, there does not appear to be any meaningful economies of scale to be realized
from internal growth. Accordingly, the Board concluded that this was not a particularly relevant consideration
in its overall evaluation.
Semi-Annual Shareholder Report
The Board also received and considered information on adviser-paid fees (commonly referred to as “revenue sharing” payments) that was provided to the Board throughout the year and in connection with
the May Meetings. The Board considered that Federated Hermes believes that this information is relevant to consider
whether Federated Hermes had an incentive to either not apply breakpoints, or to apply breakpoints at higher levels,
but should not be considered when evaluating the reasonableness of advisory fees. The Board also noted the absence of
any applicable regulatory or industry guidelines on economies of scale, which is compounded by the lack of any uniform methodology
or pattern with respect to structuring fund advisory fees with breakpoints that serve to reduce the fees as a
fund attains a certain size.
The Board considered information regarding the compensation and other ancillary (or “fall-out”) benefits that Federated Hermes derived from its relationships with the Federated Hermes Funds. The Board considered
that Federated Hermes may derive a benefit to its reputation as an adviser to the Fund, which may help in
attracting other clients and investment personnel. The Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds’ investment advisory contracts, Federated Hermes’ affiliates also receive fees for providing other services to the Federated Hermes Funds under separate service contracts, including for serving as the Federated Hermes Funds’ administrator and distributor. In this regard, the Board considered that Federated Hermes’ affiliates provide distribution and shareholder services to the Federated Hermes Funds, for which they may be compensated through
distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The Board also received and considered
information detailing the benefits, if any, that Federated Hermes may derive from its receipt of research services from brokers
who execute portfolio trades for the Federated Hermes Funds.
The Board considered the CCO’s presentation and statements and the information accompanying the CCO Management Fee Report. The Board recognized that its evaluation of the Federated Hermes Funds’ advisory and sub-advisory arrangements is a continuing and ongoing process that is informed by the information
that the Board requests and receives from management throughout the course of the year.
On the basis of the information and factors summarized above, among other information
and factors deemed relevant by the Board, and the evaluation thereof, the Board, including the Independent Trustees,
unanimously voted to approve the continuation of the Contract. The Board based its determination to approve the Contract
on the totality of the circumstances and relevant factors and with a view of past and future long-term considerations.
Not all of the factors and considerations identified above were necessarily deemed to be relevant to the Fund,
nor did the Board consider any one of them to be determinative.
Semi-Annual Shareholder Report
Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to
vote proxies, if any, relating to securities held in the Fund’s portfolio is available, without charge and upon request, by calling 1-800-341-7400, Option #4. A report on “Form N-PX” of how the Fund voted any proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with
the Fund and share class name at FederatedHermes.com/us/FundInformation. Form N-PX filings are also available at the SEC’s website at sec.gov.
Quarterly Portfolio Schedule
For each fiscal quarter, the Fund will file with the SEC a complete schedule of its
monthly portfolio holdings on “Form N-PORT.” The Fund’s holdings as of the end of the third month of every fiscal quarter, as reported on Form N-PORT, will be publicly available on the SEC’s website at sec.gov within 60 days of the end of the fiscal quarter upon filing. You may also access this information via the link to the Fund and share
class name at FederatedHermes.com/us.
Source of Distributions–Notice
Under the federal securities laws, the Fund is required to provide a notice to shareholders
regarding the source of distributions made by the Fund if such distributions are from sources other than ordinary
investment income. In addition, important information regarding the Fund’s distributions, if applicable, is available via the link to the Fund and share class name at FederatedHermes.com/us.
Semi-Annual Shareholder Report
Closed-end funds are not bank deposits or obligations, are not guaranteed by any bank
and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve
Board or any other government agency. Investment in closed-end funds involves investment risk, including the possible
loss of principal.
This Overview and Report is for shareholder information. This is not a Prospectus
intended for use in the sale of Fund Shares. Statements and other information contained in this Overview and Report are
as dated and subject to change.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver
a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides
(so-called “householding”), as permitted by applicable rules. The Fund’s “householding” program covers its Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders
must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive
mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative;
other shareholders may call the Fund at 1-800-730-6001 or email ceinfo@federatedhermes.com.
Semi-Annual Shareholder Report
Federated Hermes Premier Municipal Income Fund
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedHermes.com/us
or call 1-800-341-7400.
CUSIP 31423P108
CUSIP 31423P504
© 2026 Federated Hermes, Inc.
Not Applicable
| Item 3. | Audit Committee Financial Expert |
Not Applicable
| Item 4. | Principal Accountant Fees and Services |
Not Applicable
| Item 5. | Audit Committee of Listed Registrants |
Not Applicable
| Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included
as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the
reporting period covered since the previous Form N-CSR filing.
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Companies |
Not Applicable
| Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies |
Not Applicable
| Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Not Applicable
| Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Not Applicable
| Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
A statement regarding the bases for approval of the Fund’s
investment advisory contract is included as part of the Report to Stockholders filed under Item 1 of this form.
| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable.
| Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
(a) Not Applicable
(b) Effective February 27, 2026, Ann Ferentino and Derek Plaski
were added to the Fund’s portfolio management team.
Ann Ferentino
Ann Ferentino, CFA, Senior Portfolio Manager, has been the
Fund’s portfolio manager since February of 2026.
Ms. Ferentino is Head of the Municipal Bonds Group. She is
responsible for day to day management of the Fund focusing on asset allocation, interest rate strategy and security selection. She has
been with the Adviser or an affiliate since 1995; has worked in investment management since 2000; and has managed investment portfolios
since 2013. Education: B.S., University of Dayton; M.P.A., University of Pittsburgh.
Portfolio Manager Information
The following information about the registrant’s portfolio
manager is provided as of May 31, 2026.
| Other Accounts Managed by Ann Ferentino |
Total Number of Other Accounts Managed / Total Assets* |
| Registered Investment Companies |
8 / $4.3 billion |
| Other Pooled Investment Vehicles |
0 / $0 |
| Other Accounts |
0 / $0 |
* None of the Accounts has an advisory fee that is based on
the performance of the account.
Dollar value range of shares owned in the Fund: None.
Ann Ferentino is paid a fixed base salary and a variable annual
incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager’s
experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may
also include a discretionary component based on a variety of factors deemed relevant, such as financial measures and performance, and
may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Hermes, Inc. (Federated Hermes). The total
combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.
IPP is measured on a rolling one, three and five calendar year
pre-tax gross total return basis versus the Fund’s benchmark (i.e. S&P Municipal Bond Index reweighted 40% AAA&AA-rated,
27.5% A-rated, 17.5% BBB-rated, 15% High Yield, 3 years and longer maturity) and versus the Fund’s designated peer group of comparable
accounts. Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with
less than one year of performance history under a portfolio manager may be excluded.
As noted above, Ms. Ferentino is also the portfolio manager
for other accounts in addition to the Fund. Such other accounts may have different benchmarks and performance measures. The allocation
or weighting given to the performance of the Fund or other accounts or activities for which Ms. Ferentino is responsible when her compensation
is calculated may be equal or can vary.
In addition, Ms. Fererntino has oversight responsibility for
other portfolios that she does not personally manage and serves on one or more Investment Teams that establish guidelines on various performance
drivers (e.g., currency, duration, sector and/or yield curve) for taxable, fixed-income accounts. A portion of the IPP score is based
on Federated Hermes senior management’s assessment of team contributions.
For purposes of calculating the annual incentive amount, each
account managed by the portfolio manager currently is categorized into one of five IPP groups (which may be adjusted periodically). Within
each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed
or activity engaged in by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the Fund
is greater than or equal to the weighting assigned to certain other accounts or activities used to determine IPP, and is lesser than or
equal to the weighting assigned to certain other accounts or activities used to determine IPP (but can be adjusted periodically). A portion
of the bonus tied to the IPP score may be adjusted based on management's assessment of overall contributions to account performance and
any other factors as deemed relevant.
Any individual allocations from the discretionary pool may
be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or
asset class basis, and considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).
As a general matter, certain conflicts of interest may arise
in connection with a portfolio manager’s management of a fund’s investments, on the one hand, and the investments of other
funds/pooled investment vehicles or accounts (collectively, including the Fund, as applicable, “accounts”) for which the portfolio
manager is responsible, on the other. For example, it is possible that the various accounts managed could have different investment strategies
that, at times, might conflict with one another to the possible detriment of the Fund. Alternatively, to the extent that the same investment
opportunities might be desirable for more than one account, possible conflicts could arise in determining how to allocate them. Other
potential conflicts can include, for example, conflicts created by specific portfolio manager compensation arrangements (including, for
example, the allocation or weighting given to the performance of the Fund or other accounts or activities for which the portfolio manager
is responsible in calculating the portfolio manager’s compensation), and conflicts relating to selection of brokers or dealers to
execute Fund portfolio trades and/or specific uses of commissions from Fund portfolio trades (for example, research, or “soft dollars”).
The Adviser has adopted policies and procedures and has structured the portfolio managers’ compensation in a manner reasonably designed
to safeguard the Fund from being negatively affected as a result of any such potential conflicts.
Derek Plaski
Derek Plaski, CFA, Portfolio Manager, has been the Fund’s
portfolio manager since February of 2026.
Mr. Plaski is responsible for day to day management of the
Fund focusing on asset allocation, interest rate strategy and security selection. He has been with the Adviser or an affiliate since 2018;
has worked in investment management since 2020; has managed investment portfolios since 2024. Education: B.S., M.B.A, University of Pittsburgh.
Portfolio Manager Information
The following information about the registrant’s portfolio
manager is provided as of May 31, 2026.
| Other Accounts Managed by Derek Plaski |
Total Number of Other Accounts Managed / Total Assets* |
| Registered Investment Companies |
6 / $2.5 billion |
| Other Pooled Investment Vehicles |
0 / $0 |
| Other Accounts |
0 / $0 |
* None of the Accounts has an advisory fee that is based on
the performance of the account.
Dollar value range of shares owned in the Fund: None.
Derek Plaski is paid a fixed base salary and a variable annual
incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager’s
experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may
also include a discretionary component based on a variety of factors deemed relevant, such as financial measures and performance, and
may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Hermes, Inc. (Federated Hermes). The total
combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.
IPP is measured on a rolling one, three and five calendar year
pre-tax gross total return basis versus the Fund’s benchmark (i.e. S&P Municipal Bond Index reweighted 40% AAA&AA-rated,
27.5% A-rated, 17.5% BBB-rated, 15% High Yield, 3 years and longer maturity) and versus the Fund’s designated peer group of comparable
accounts. Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with
less than one year of performance history under a portfolio manager may be excluded.
As noted above, Mr. Plaski is also the portfolio manager for
other accounts in addition to the Fund. Such other accounts may have different benchmarks and performance measures. The allocation or
weighting given to the performance of the Fund or other accounts for which Mr. Plaski is responsible when his compensation is calculated
may be equal or can vary.
For purposes of calculating the annual incentive amount, each
account managed by the portfolio manager currently is categorized into one of three IPP groups (which may be adjusted periodically). Within
each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed
by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the Fund is greater than or equal
to the weighting assigned to certain other accounts used to determine IPP (but can be adjusted periodically). A portion of the bonus tied
to the IPP score may be adjusted based on management's assessment of overall contributions to account performance and any other factors
as deemed relevant.
Any individual allocations from the discretionary pool may
be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or
asset class basis, and considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).
In addition, Mr. Plaski was awarded a grant of restricted Federated
Hermes stock. Awards of restricted stock are discretionary and are made in variable amounts based on the subjective judgment of Federated
Hermes’ senior management.
As a general matter, certain conflicts of interest may arise
in connection with a portfolio manager’s management of a fund’s investments, on the one hand, and the investments of other
funds/pooled investment vehicles or accounts (collectively, including the Fund, as applicable, “accounts”) for which the portfolio
manager is responsible, on the other. For example, it is possible that the various accounts managed could have different investment strategies
that, at times, might conflict with one another to the possible detriment of the Fund. Alternatively, to the extent that the same investment
opportunities might be desirable for more than one account, possible conflicts could arise in determining how to allocate them. Other
potential conflicts can include, for example, conflicts created by specific portfolio manager compensation arrangements (including, for
example, the allocation or weighting given to the performance of the Fund or other accounts or activities for which the portfolio manager
is responsible in calculating the portfolio manager’s compensation), and conflicts relating to selection of brokers or dealers to
execute Fund portfolio trades and/or specific uses of commissions from Fund portfolio trades (for example, research, or “soft dollars”).
The Adviser has adopted policies and procedures and has structured the portfolio managers’ compensation in a manner reasonably designed
to safeguard the Fund from being negatively affected as a result of any such potential conflicts.
| Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
No such purchases this period.
| Item 15. | Submission of Matters to a Vote of Security Holders. |
No changes to report.
| Item 16. | Controls and Procedures. |
(a) The registrant’s President and Treasurer have
concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in
design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their
evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal
control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that have materially
affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
| Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not Applicable. The registrant does not currently participate
in a securities lending program and did not engage in any securities lending activities during the period of this report.
| Item 18. | Recovery of Erroneously Awarded Compensation |
(a) Not Applicable
(b) Not Applicable
(a)(1) Not Applicable
(a)(2) Not Applicable
(a)(3) Certifications of Principal Executive Officer and Principal Financial Officer
(a)(4) Not Applicable
(a)(5) Not Applicable
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Registrant: Federated Hermes Premier Municipal
Income Fund
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: July 24, 2026
Pursuant to the requirements of the Securities Exchange Act
of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.
By: /s/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer
Date: July 24, 2026
By: /s/ Jeremy D. Boughton
Jeremy D. Boughton, Principal Financial Officer
Date: July 24, 2026
