United States Securities and Exchange Commission Washington, D.C. 20549 Form N-Q Quarterly Schedule of Portfolio Holdings of Registered Management Investment Companies 811-21235 (Investment Company Act File Number) Federated Premier Municipal Income Fund --------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Federated Investors Funds 5800 Corporate Drive Pittsburgh, Pennsylvania 15237-7000 (412) 288-1900 (Registrant's Telephone Number) John W. McGonigle, Esquire Federated Investors Tower 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: 11/30/04 -------- Date of Reporting Period: Quarter ended 8/31/04 --------------------- Item 1. Schedule of Investments Federated Premier Municipal Income Fund Portfolio of Investments August 31, 2004 (unaudited) Principal Credit Amount Rating 1 Value Long-Term Municipals--99.9% Alabama--1.6% $ 2,000,000 Jefferson County, AL Sewer System, Capital Improvement Warrants (Series 2002D), 5.25% (FGIC INS), 2/1/2026 AAA / Aaa / AAA $ 2,267,920 Arizona--2.2% 500,000 Arizona Tourism & Sports Authority, Multipurpose Stadium Facilities Tax Revenue Bonds (Series A), 5.00% (MBIA Insurance Corp. INS), 7/1/2024 NR / Aaa / AAA 519,320 1,000,000 Arizona Tourism & Sports Authority, Multipurpose Stadium Facility Tax Revenue Bonds (Series A), 5.375% (MBIA Insurance Corp. INS), 7/1/2022 NR / Aaa / AAA 1,090,150 750,000 Tempe, AZ IDA, Senior Living Revenue Bonds (Series A), 6.75% (Friendship Village of Tempe), 12/1/2030 NR 762,780 750,000 Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.50%, 7/15/2027 NR 776,693 Total 3,148,943 Arkansas--0.7% 1,000,000 Arkansas Development Finance Authority, Hospital Revenue Bonds (Series 2000), 7.375% (Washington Regional Medical Center)/(Original Issue Yield: 7.50%), BBB- / Baa3 / 2/1/2029 BBB 1,089,420 California--5.2% 1,000,000 California State Department of Water Resources Power Supply Program, Power Supply Revenue Bonds (Series A), 5.375% (Original Issue Yield: 5.48%), 5/1/2022 BBB+ / A2 / A- 1,066,590 2,000,000 California State, Refunding UT GO Bonds , 5.25%, 2/1/2020 A / A3 / BBB 2,139,480 1,000,000 California State, UT GO Bonds , 5.25%, 10/1/2020 A / A3 / BBB 1,067,420 250,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.75% (Original Issue Yield: BBB / Baa3 / 7.00%), 6/1/2039 BBB 233,725 750,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Revenue BBB / Baa3 / Bonds (Series 2003A-2), 7.90%, 6/1/2042 BBB 791,730 500,000 La Verne, CA, Revenue Certificates of Participation (Series 2003B), 6.625% (Brethren Hillcrest Homes)/(Original Issue Yield: 6.70%), 2/15/2025 BBB- / NR / NR 509,030 1,500,000 Upland, CA Public Financing Authority, Water System Improvement Lease Revenue Bonds (Issue of 2003), 5.00% (AMBAC INS), 10/1/2027 AAA / Aaa / AAA 1,535,685 Total 7,343,660 Colorado--3.8% 725,000 Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00%, 12/1/2023 NR 727,617 1,000,000 Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023 NR 1,003,560 500,000 Colorado Educational & Cultural Facilities Authority, Revenue Refunding Bonds (Series A), 7.00% (Denver Academy)/(Original Issue Yield: 7.25%), 11/1/2023 BB+ / NR / NR 503,895 1,000,000 Colorado Health Facilities Authority, Revenue Bonds (Series 2002A), 6.125% (Covenant Retirement Communities, Inc.)/(Original Issue Yield: 6.40%), BBB+ / NR / 12/1/2033 BBB+ 1,026,140 500,000 Conservatory Metropolitan District, CO, LT GO Bonds, 7.55%, 12/1/2032 NR 516,565 1,000,000 Denver, CO Health & Hospital Authority, Revenue Bonds, 6.25% (Original Issue Yield: 6.28%), 12/1/2033 BBB / Baa3 / NR 1,048,080 500,000 Southlands, CO Metropolitan District No. 1, LT GO Bonds (Series 2004), 7.00% (Original Issue Yield: 7.05%), 12/1/2024 NR 499,655 Total 5,325,512 Connecticut--2.4 % 1,250,000 Connecticut State Development Authority, First Mortgage Gross Revenue Health Care Project Bonds (Series 2003), 5.85% (Elim Park Baptist Home, Inc.)/(Original Issue Yield: 5.98%), 12/1/2033 BBB+ / NR / NR 1,273,375 2,000,000 Connecticut State Transportation Infrastructure Authority, Transportation Infrastructure Special Tax Revenue Bonds (Series 2002B), 5.00% (AMBAC INS), 12/1/2022 AAA / Aaa / AAA 2,087,060 Total 3,360,435 District Of Columbia--1.6% 2,500,000 District of Columbia Tobacco Settlement Financing Corp., Asset Backed Revenue Bonds, 6.50% (Original Issue Yield: BBB / Baa3 / 6.67%), 5/15/2033 BBB 2,251,050 Florida--7.4% 600,000 Broward County, FL Educational Facilities Authority, Educational Facilities Revenue Bonds (Series 2004B), 5.60% (Nova Southeastern University)/(Original Issue BBB / Baa2 / Yield: 5.625%), 4/1/2029 BBB+ 616,536 400,000 2,3 Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033 NR 464,500 1,000,000 2,3 Capital Trust Agency, FL, Revenue Bonds (Series 2001), 10.00% (Seminole Tribe of Florida Convention and Resort Hotel Facilities), 10/1/2033 NR 1,197,620 1,490,000 Citrus County, FL Hospital Board, Revenue Refunding Bonds, 6.375% (Citrus Memorial Hospital)/(Original Issue Yield: 6.50%), 8/15/2032 NR / Baa3 / BBB 1,543,357 1,320,000 Harbor Bay, FL Community Development District, Special Assessment Revenue Bonds, 6.75%, 5/1/2034 NR 1,413,179 2,000,000 Jacksonville, FL Sales Tax, Revenue Bonds (Series 2003), 5.00% (MBIA Insurance Corp. INS), 10/1/2024 AAA / Aaa / AAA 2,085,180 400,000 Midtown Miami, FL Community Development District, Special Assessment Bonds (Series 2004A), 6.00%, 5/1/2024 NR 408,636 400,000 Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.25%, 5/1/2034 NR 406,964 1,000,000 South Lake County, FL Hospital District, Revenue Bonds, 6.625% (South Lake NR / Baa3 / Hospital, Inc.), 10/1/2023 BBB- 1,048,560 1,190,000 Verandah West, FL Community Development District, Capital Improvement Revenue Bonds (Series 2003A), 6.625% (Original Issue Yield: 6.75%), 5/1/2033 NR 1,243,383 Total 10,427,915 Georgia--0.3% 500,000 Athens, GA Housing Authority, Lease Revenue Bonds, 5.25% (University of Georgia-East Campus)/(AMBAC INS), 12/1/2023 NR / Aaa / AAA 531,415 Hawaii--1.0% 1,400,000 Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 8.00% (Kahala Nui)/(Original Issue Yield: 8.175%), 11/15/2033 NR 1,416,030 Illinois--4.0% 1,000,000 Antioch Village, IL Special Service Area No. 1, Special Tax Revenue Bonds, 6.625% (Deercrest Project), 3/1/2033 NR 997,460 2,500,000 Chicago, IL Sales Tax, Revenue Bonds, 5.25% (FGIC INS)/(Original Issue Yield: 5.385%), 1/1/2028 AAA / Aaa / AAA 2,583,450 1,000,000 Chicago, IL Special Assessment, Improvement Revenue Bonds, 6.75% (Lakeshore East Project)/(Original Issue Yield: 6.769%), 12/1/2032 NR 1,036,530 1,000,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Series A), 5.70% (Augustana College)/(Original Issue Yield: 5.90%), 10/1/2032 NR / Baa1 / NR 1,024,720 Total 5,642,160 Kansas--2.2% 3,000,000 Wichita, KS Water & Sewer Utility, Revenue Bonds (Series 2003), 5.00% (FGIC INS), 10/1/2021 AAA / Aaa / AAA 3,178,410 Kentucky--1.1% 1,500,000 Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.97%), 10/1/2028 NR / NR / BBB+ 1,579,575 Massachusetts--3.4% 1,500,000 Commonwealth of Massachusetts, LT GO Bonds, 5.25% (U.S. Treasury PRF), 1/1/2022 AAA / Aaa / AAA 1,684,215 2,000,000 Massachusetts Development Finance Agency, Revenue Bonds, 5.75% (Massachusetts College of Pharmacy & Allied Health Sciences), 7/1/2033 BBB / NR / NR 2,063,940 1,000,000 Massachusetts HEFA, Revenue Bonds (Series 2003E), 6.75% (Jordan Hospital )/(Original Issue Yield: 7.00%), 10/1/2033 BBB- / NR / NR 1,045,810 Total 4,793,965 Michigan--4.6% 2,000,000 Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco Corp.), 5/1/2018 BBB / Baa2 / NR 2,084,300 1,000,000 Detroit, MI Sewage Disposal System, Refunding Senior Lien Revenue Bonds (Series 2003A), 5.00% (FSA INS), 7/1/2024 AAA / Aaa / AAA 1,033,470 2,375,000 Melvindale-Northern Allen Park, MI School District, Building & Site LT GO Bonds, 5.00% (FSA INS), 5/1/2023 AAA / Aaa / AAA 2,469,264 900,000 West Bloomfield, MI School District, School Building & Site UT GO Bonds, 5.125% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.35%), 5/1/2021 AAA / Aaa / AAA 957,771 Total 6,544,805 Minnesota--0.6% 900,000 St. Paul, MN Port Authority, Hotel Facility Revenue Bonds (Series 2), 7.375% (Radisson Kellogg Project)/(Original Issue Yield: 7.50%), 8/1/2029 NR 912,384 Mississippi--1.6% 2,000,000 Lowndes County, MS Solid Waste Disposal, Refunding PCR Bonds (Series 1992B), 6.70% (Weyerhaeuser Co.), 4/1/2022 BBB / Baa2 / NR 2,280,380 Missouri--0.7% 1,000,000 Missouri Development Finance Board, Infrastructure Facilities Bonds (Series 2003A), 5.50% (Branson, MO)/(Original BBB+ / Baa1 / Issue Yield: 5.56%), 12/1/2032 NR 1,023,540 Nevada--2.4% 700,000 Las Vegas, NV Special Improvement District No. 607, Local Improvement Special Assessment Bonds (Series 2004), 6.25% (Original Issue Yield: 6.285%), 6/1/2024 NR 721,294 650,000 North Las Vegas, NV Special Improvement District No. 60, Local Improvement Special Assessment Bonds (Series 2002), 6.40% (Aliante), 12/1/2022 NR 660,264 2,000,000 Truckee Meadows, NV Water Authority, Water Revenue Bonds (Series 2001A), 5.00% (FSA INS)/(Original Issue Yield: 5.36%), 7/1/2025 AAA / Aaa / AAA 2,044,560 Total 3,426,118 New Hampshire--2.3% 3,000,000 Manchester, NH School Facilites, Revenue Bonds , 5.50% (MBIA Insurance Corp. INS), 6/1/2028 AAA / Aaa / AAA 3,227,820 New Jersey--1.8% 300,000 New Jersey EDA, Revenue Refunding Bonds (Series A), 5.80% (Winchester Gardens at Ward Homestead)/(Original Issue Yield: 5.82%), 11/1/2031 NR / NR / BBB- 299,523 600,000 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.50% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.72%), 7/1/2023 B+ / NR / BB 570,600 500,000 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.625% (Palisades Medical Center)/(Original Issue Yield: 6.67%), BBB- / Baa3 / 7/1/2031 BBB- 526,205 1,000,000 New Jersey State Educational Facilities Authority, Revenue Bonds, Project C, BBB+ / Baa1 / 6.50% (Georgian Court College), 7/1/2033 NR 1,104,090 Total 2,500,418 New Mexico--0.6% 750,000 2,3 Jicarilla, NM Apache Nation, Revenue Bonds, 5.50%, 9/1/2023 NR / NR / AAA 791,003 New York--4.8% 750,000 Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.25%), 7/1/2022 NR / Baa1 / NR 767,970 750,000 Dutchess County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 7.50% (St. Francis Hospital and Health Centers), 3/1/2029 NR 742,620 3,000,000 Metropolitan Transportation Authority, NY, Service Contract Revenue Refunding Bonds, (Series A), 5.00% (FGIC INS)/(Original Issue Yield: 5.14%), 7/1/2022 AAA / Aaa / AAA 3,141,300 2,000,000 New York State Dormitory Authority, Revenue Bonds (Series 2003A), 5.50% (Brooklyn Law School)/(Radian Asset Assurance INS), 7/1/2019 AA / NR / NR 2,193,980 Total 6,845,870 North Carolina--3.0% 1,000,000 Appalachian State University, NC, Revenue Bonds, (Series 2003 A), 5.125% (FGIC INS), 5/1/2021 NR / Aaa / AAA 1,067,830 1,000,000 Haywood County, NC Industrial Facilities & Pollution Control Financing Authority, Refunding Revenue Bonds, 6.00% (Champion International Corp.), 3/1/2020 NR / Baa2 / NR 1,049,490 1,000,000 North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series 2003C), 5.375% (Original BBB / Baa2 / Issue Yield: 5.57%), 1/1/2017 BBB+ 1,065,550 1,000,000 North Carolina Municipal Power Agency No. 1, Electric Revenue Bonds (Series 2003A), 5.25% (Catawba Electric)/(MBIA Insurance Corp. INS), 1/1/2019 AAA / Aaa / AAA 1,085,940 Total 4,268,810 North Dakota--3.0% 2,000,000 Fargo, ND, Health System Revenue Bonds (Series 2000A), 5.60% (Meritcare Obligated Group)/(FSA INS)/(Original Issue Yield: 5.70%), 6/1/2021 AAA / Aaa / NR 2,182,800 2,000,000 Ward County, ND Health Care Facility, Revenue Bonds (Series A), 6.25% (Trinity Obligated Group, ND)/(Original Issue Yield: 6.375%), 7/1/2026 BBB+ / NR / NR 2,041,480 Total 4,224,280 Ohio--0.7% 1,000,000 Ohio State Air Quality Development Authority, PCR Refunding Bonds (Series 2002A), 6.00% (Cleveland Electric BB+ / Baa3 / Illuminating Co.), 12/1/2013 BBB- 1,031,860 Pennsylvania--3.8% 1,165,000 Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny Health System)/(Original Issue Yield: 9.70%), 11/15/2030 B / B2 / B+ 1,326,538 200,000 Allegheny County, PA HDA, Revenue Bonds, (Series A), 8.75% (Covenant at South Hills)/(Original Issue Yield: 8.80%), 2/1/2031 NR 150,620 1,295,000 Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(Original Issue Yield: 7.50%), 1/1/2035 NR 1,308,791 1,500,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, (Series A), 6.00% (UPMC Health System)/(Original Issue Yield: 6.16%), 1/15/2031 A / NR / A 1,583,400 1,000,000 Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Bonds (Series 2003A), 5.25% (MBIA Insurance Corp. INS), 12/1/2023 AAA / Aaa / AAA 1,072,990 Total 5,442,339 South Carolina--5.5% 1,000,000 Clemson University, SC, University Revenue Bonds, 5.00% (XL Capital Assurance Inc. INS), 5/1/2023 AAA / Aaa / AAA 1,036,800 1,940,000 Myrtle Beach, SC, Hospitality Fee Revenue Bonds (Series2004A), 5.375% (FGIC INS), 6/1/2023 AAA / Aaa / NR 2,103,736 2,500,000 South Carolina Jobs-EDA, Health System Revenue Bonds (Series A), 5.625% (Bon Secours Health System)/(Original Issue Yield: 5.84%), 11/15/2030 A- / A3 / A- 2,531,050 2,000,000 South Carolina State Public Service Authority, Refunding Revenue Bonds (Series 2002D), 5.00% (Santee Cooper)/(FSA INS), 1/1/2020 AAA / Aaa / AAA 2,119,340 Total 7,790,926 South Dakota--1.3% 1,750,000 South Dakota State Health & Educational Authority, Revenue Bonds, 5.65% (Westhills Village Retirement Community)/(Original Issue Yield: 5.75%), 9/1/2023 A- / NR / NR 1,795,290 Tennessee--3.8% 2,000,000 Johnson City, TN Health & Education Facilities Board, Hospital Revenue Refunding Bonds (Series A), 7.50% (Mountain States Health Alliance), BBB+ / Baa2 / 7/1/2025 BBB- 2,348,460 1,535,000 Knox County, TN Health Education & Housing Facilities Board, Refunding Improvement Revenue Bonds (Series 2003B), 5.75% (East Tennessee Children's Hospital)/(Original Issue Yield: 5.90%), BBB+ / Baa1 / 7/1/2033 NR 1,565,193 1,500,000 Knox County, TN Health Education & Housing Facilities Board, Revenue Bonds, 6.375% (Baptist Health System of East Tennessee)/(Original Issue Yield: 6.50%), 4/15/2022 NR / Baa3 / NR 1,449,570 Total 5,363,223 Texas--10.1% 1,200,000 Abilene, TX Health Facilites Development Corp., Retirement Facilities Revenue Bonds (Series 2003A), 7.00% (Sears Methodist Retirement) /(Original Issue Yield: 7.25%), 11/15/2033 NR 1,284,780 700,000 Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 7.125% (Wise Regional Health System), 9/1/2034 NR 696,220 2,500,000 Houston, TX Combined Utility System, First Lien Revenue Refunding Bonds (Series 2004A), 5.25% (FGIC INS), 5/15/2023 AAA / Aaa / AAA 2,671,325 200,000 Matagorda County, TX Navigation District Number One, Collateralized Refunding Revenue Bonds, 5.60% (Centerpoint Energy BBB / Baa2 / Houston Electric), 3/1/2027 BBB 203,800 4,000,000 North Central Texas HFDC, Hospital Revenue Refunding Bonds (Series 2002), 5.25% (Children's Medical Center of Dallas)/(AMBAC INS)/(Original Issue Yield: 5.35%), 8/15/2022 AAA / Aaa / AAA 4,231,120 1,350,000 North Central Texas HFDC, Retirement Facility Revenue Bonds (Series 1999), 7.50% (Northwest Senior Housing Corp. Edgemere Project)/(Original Issue Yield: 7.75%), 11/15/2029 NR 1,401,300 335,000 Sabine River Authority, TX, Refunding PCR Bonds (Series 2003A), 5.80% (TXU Energy), 7/1/2022 BBB / Baa2 / NR 342,782 1,050,000 Sabine River Authority, TX, PCR Refunding Bonds (Series 2003B), 6.15% (TXU Energy), BBB / Baa2 / 8/1/2022 BBB+ 1,102,395 1,300,000 Texas State University System, Refunding Revenue Bonds, 5.00% (FSA INS), 3/15/2020 AAA / Aaa / AAA 1,364,441 1,000,000 Tyler, TX Health Facilities Development Corp., Hospital Revenue Bonds, 5.75% (Mother Frances Hospital )/(Original NR / Baa1 / Issue Yield: 5.84%), 7/1/2027 BBB+ 1,015,120 Total 14,313,283 Virginia--3.4% 1,000,000 Broad Street Community Development Authority, VA, Revenue Bonds, 7.50% (Original Issue Yield: 7.625%), 6/1/2033 NR 989,940 1,280,000 Hampton, VA Convention Center, Revenue Bonds, 5.125% (AMBAC INS), 1/15/2028 AAA / Aaa / AAA 1,325,914 1,400,000 Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% (Virginia Baptist Homes Obligated Group)/(Original Issue Yield: 7.625%), 12/1/2032 NR 1,467,116 1,000,000 Virginia Peninsula Port Authority, Coal Terminal Revenue Refunding Bonds (Series 2003), 6.00% (Dominion Terminal Associates Project-Brink's Issue), 4/1/2033 BBB / Baa3 / NR 1,033,940 Total 4,816,910 Washington--5.1% 1,000,000 Everett, WA, LT GO Refunding Bonds, 5.00% (MBIA Insurance Corp. INS), 12/1/2020 NR / Aaa / AAA 1,054,870 1,910,000 King County, WA Public Hospital District No. 1, Refunding LT GO Bonds, 5.00% (FSA INS)/(Original Issue Yield: 5.17%), 12/1/2021 AAA / Aaa / AAA 1,991,786 2,000,000 Washington State, UT GO Bonds (Series 2002B), 5.00% (FSA INS)/(Original Issue Yield: 5.05%), 1/1/2021 AAA / Aaa / AAA 2,089,060 2,000,000 Washington State, Various Purpose UT GO Bonds (Series 2002A), 5.00% (FSA INS)/(Original Issue Yield: 5.09%), 7/1/2022 AAA / Aaa / AAA 2,070,640 Total 7,206,356 Wisconsin--3.9% 3,000,000 Wisconsin State HEFA, Health Facilities Revenue Bonds (Series A), 5.25% (Ministry Health Care)/(MBIA Insurance Corp. INS)/(Original Issue Yield: 5.38%), 2/15/2032 AAA / Aaa / AAA 3,092,640 160,000 Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.75% (Blood Center of Southeastern Wisconsin, Inc.)/(Original Issue Yield: 5.82%), 6/1/2034 BBB+ / NR / NR 162,418 250,000 Wisconsin State HEFA, Revenue Bonds (Series 2004A), 6.25% (Southwest Health Center)/(Original Issue Yield: 6.32%), 4/1/2034 NR 243,673 500,000 Wisconsin State HEFA, Revenue Bonds, 6.50% (Tomah Memorial Hospital, Inc.)/(Original Issue Yield: 6.75%), 7/1/2023 NR 503,345 500,000 Wisconsin State HEFA, Revenue Bonds, 6.625% (Tomah Memorial Hospital, Inc.)/(Original Issue Yield: 6.875%), 7/1/2028 NR 503,025 1,000,000 Wisconsin State HEFA, Revenue Bonds, 7.25% (Community Memorial Hospital)/(Original Issue Yield: 7.45%), 1/15/2033 NR 1,012,130 Total 5,517,231 Total Long-Term Municipals (identified cost $136,926,021) 141,679,256 SHORT-TERM MUNICIPALS - 0.1% Utah--0.1% 150,000 Weber County, UT, (Series 2000B) Daily VRDNs (IHC Health Services, Inc.)/ (WestLB AG (GTD) LIQ) (at amortized cost) AA+ / Aa1 / NR 150,000 Total Investments - 100% (identified cost $137,076,021)4 141,829,256 OTHER ASSETS AND LIABILITIES - NET 393,753 LIQUIDATION VALUE OF AUCTION PREFERRED SHARES (53,675,000) TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS $ 88,548,009 At August 31, 2004, the fund holds no securities that are subject to the federal alternative minimum tax (AMT). 1 Current credit ratings provided by Standard & Poor's, Moody's Investor Service and Fitch Ratings, respectively, are unaudited. 2 Denotes a restricted security, including securities purchased under Rule 144A of the Securities Act of 1933. These securities, unless registered under the Act or exempted from registration, may only be sold to qualified institutional investors. At August 31, 2004, these securities amounted to $2,453,123 which represents 1.7% of total market value. 3 Denotes a restricted security, including securities purchased under Rule 144A that have been deemed liquid by criteria approved by the fund's Board of Trustees. At August 31, 2004, these securities amounted to $2,453,123 which represents 1.7% of total market value. 4 The cost of investments for federal tax purposes amounts to $137,075,832. The net unrealized appreciation of investments for federal tax purposes was $4,753,424. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $5,174,087 and net unrealized depreciation from investments for those securities having an excess of cost over value of $420,663. Note: The categories of investments are shown as a percentage of total market value at August 31, 2004. The following acronyms are used throughout this portfolio: AMBAC --American Municipal Bond Assurance Corporation EDA --Economic Development Authority EDFA --Economic Development Finance Authority FGIC --Financial Guaranty Insurance Company FSA --Financial Security Assurance GO --General Obligation GTD --Guaranteed HDA --Hospital Development Authority HEFA --Health and Education Facilities Authority HFDC --Health Facility Development Corporation IDA --Industrial Development Authority INS --Insured LIQ --Liquidity Agreement LT --Limited Tax PCR --Pollution Control Revenue PRF --Prerefunded UT --Unlimited Tax VRDNs --Variable Rate Demand Notes Item 2. Controls and Procedures (a) The registrant's Principal Executive Officer and Principal Financial Officer 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-Q. (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 last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits 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 Premier Municipal Income Fund By /S/ Richard J. Thomas, Principal Financial Officer (insert name and title) Date October 25, 2004 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, Principal Executive Officer Date October 25, 2004 By /S/ Richard J. Thomas, Principal Financial Officer Date October 25, 2004