United States
Securities and Exchange Commission
Washington, D.C. 20549
Amended
Form N-CSR
Certified Shareholder Report 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
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrants 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: 11/30/2009
Date of Reporting Period: 11/30/2009
Item 1. | Reports to Stockholders |
Federated Premier Intermediate Municipal Income Fund
November 30, 2009
Federated Investors' Closed-End Municipal Funds
Established 2002
FINANCIAL HIGHLIGHTS
PORTFOLIO OF INVESTMENTS SUMMARY TABLES
PORTFOLIOS OF INVESTMENTS
STATEMENTS OF ASSETS AND
LIABILITIES
STATEMENTS OF OPERATIONS
STATEMENTS OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
BOARD OF TRUSTEES AND FUND OFFICERS
LAST MEETING OF
SHAREHOLDERS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
DIVIDEND REINVESTMENT PLAN
DISCLOSURE UPDATE
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE
SOURCE OF DISTRIBUTIONS -
NOTICE
CERTIFICATION DISCLOSURE
Financial Highlights - Federated Premier
Municipal Income Fund
(For a Common Share Outstanding Throughout Each Period)
Year Ended November 30 | 2009 | 2008 | 2007 | 2006 | 2005 |
Net Asset Value, Beginning of Period | $11.08 | $14.60 | $15.56 | $15.05 | $14.66 |
Income From Investment Operations: |
Net investment income1 | 1.07 | 1.12 | 1.12 | 1.12 | 1.12 |
Net realized and unrealized gain (loss) on investments, swap contracts and futures contracts | 2.13 | (3.59) | (0.96) | 0.55 | 0.43 |
Distributions to preferred shareholders from net investment income2 | (0.02) | (0.25) | (0.32) | (0.29) | (0.19) |
TOTAL FROM INVESTMENT OPERATIONS | 3.18 | (2.72) | (0.16) | 1.38 | 1.36 |
Less Distributions to Common Shareholders: |
From net investment income | (1.01) | (0.80) | (0.80) | (0.87) | (0.97) |
Net Asset Value, End of Period | $13.25 | $11.08 | $14.60 | $15.56 | $15.05 |
Market Price, End of Period | $14.47 | $9.37 | $13.92 | $15.80 | $14.44 |
Total Return at Net Asset Value3 | 29.89% | (19.45)% | (1.01)% | 9.51% | 9.49% |
Total Return at Market Price4 | 67.59% | (28.31)% | (7.03)% | 15.90% | 7.75% |
Ratios to Average Net Assets: |
Net expenses5 | 1.03% | 0.98%6 | 0.85% | 0.85% | 0.85% |
Net expenses excluding interest and trust expenses on inverse floater structures5 | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% |
Net investment income7 | 8.59% | 6.37% | 5.33% | 5.49% | 6.16% |
Expense waiver/reimbursement8 | 0.56% | 0.54% | 0.47%9 | 0.45%9 | 0.45%9 |
Supplemental Data: |
Net assets, end of period (000 omitted) | $81,443 | $67,990 | $89,528 | $95,291 | $92,013 |
Portfolio turnover | 79% | 32% | 12% | 21% | 3% |
Total Amount Outstanding |
Asset Coverage Per Share |
Minimum Required Asset Coverage Per Share |
Involuntary Liquidating Preference Per Share |
Average Market Value Per Share10 |
11/30/2009 | $36,575,000 | $80,668 | $50,006 | $25,003 | $25,000 |
11/30/2008 | $44,075,000 | $63,565 | $50,006 | $25,003 | $25,000 |
11/30/2007 | $53,675,000 | $66,699 | $50,006 | $25,003 | $25,000 |
11/30/2006 | $53,675,000 | $69,383 | $50,034 | $25,017 | $25,000 |
11/30/2005 | $53,675,000 | $67,857 | $50,024 | $25,012 | $25,000 |
1 | Per share numbers have been calculated using the average shares method. |
2 | The amounts shown are based on Common Share equivalents. |
3 | 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. |
4 | 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. |
5 | Ratios do not reflect the effect of dividend payments to preferred shareholders and any associated commission costs. |
6 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended November 30, 2008, is 0.98% after taking into account this expense reduction. |
7 | Ratios reflect reductions for dividend payments to preferred shareholders. |
8 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
9 | Additional information relating to contractual expense waivers, which has no effect on net expenses, net investment income and net assets previously reported, has been provided to conform to the current year presentation. |
10 | Represents initial public offering price. |
See Notes which are an integral part of the Financial Statements
Annual Shareholder ReportFinancial
Highlights - Federated Premier
Intermediate Municipal Income Fund
(For a Common Share Outstanding Throughout Each Period)
Year Ended November 30 | 2009 | 2008 | 2007 | 2006 | 2005 |
Net Asset Value, Beginning of Period | $11.90 | $14.15 | $14.83 | $14.41 | $14.53 |
Income From Investment Operations: |
Net investment income1 | 0.92 | 0.97 | 0.99 | 0.96 | 0.92 |
Net realized and unrealized gain (loss) on investments, swap contracts and futures contracts | 1.54 | (2.29) | (0.66) | 0.44 | (0.08) |
Distributions to preferred shareholders from net investment income2 | (0.02) | (0.24) | (0.32) | (0.29) | (0.20) |
TOTAL FROM INVESTMENT OPERATIONS | 2.44 | (1.56) | 0.01 | 1.11 | 0.64 |
Less Distributions to Common Shareholders: |
From net investment income | (0.88) | (0.69) | (0.69) | (0.69) | (0.76) |
Net Asset Value, End of Period | $13.46 | $11.90 | $14.15 | $14.83 | $14.41 |
Market Price, End of Period | $13.62 | $9.37 | $12.50 | $13.81 | $12.68 |
Total Return at Net Asset Value3 | 21.24% | (11.47)% | 0.10% | 7.94% | 4.46% |
Total Return at Market Price4 | 56.22% | (20.62)% | (4.80)% | 14.63% | (0.66)% |
Ratios to Average Net Assets: |
Net expenses5 | 1.08% | 0.98%6 | 0.89% | 0.89% | 0.89% |
Net expenses excluding interest and trust expenses on inverse floater structures5 | 0.89% | 0.89% | 0.89% | 0.89% | 0.89% |
Net investment income7 | 7.01% | 5.43% | 4.63% | 4.61% | 4.97% |
Expense waiver/reimbursement8 | 0.43% | 0.45% | 0.42%9 | 0.39%9 | 0.40%9 |
Supplemental Data: |
Net assets, end of period (000 omitted) | $93,598 | $82,655 | $98,317 | $103,017 | $100,124 |
Portfolio turnover | 47% | 20% | 17% | 46% | 15% |
Total Amount Outstanding |
Asset Coverage Per Share |
Minimum Required Asset Coverage Per Share |
Involuntary Liquidating Preference Per Share |
Average Market Value Per Share10 |
11/30/2009 | $41,900,000 | $80,846 | $50,000 | $25,000 | $25,000 |
11/30/2008 | $50,900,000 | $65,597 | $50,004 | $25,002 | $25,000 |
11/30/2007 | $61,025,000 | $65,277 | $50,018 | $25,009 | $25,000 |
11/30/2006 | $61,025,000 | $67,203 | $50,010 | $25,005 | $25,000 |
11/30/2005 | $61,025,000 | $66,017 | $50,004 | $25,002 | $25,000 |
1 | Per share numbers have been calculated using the average shares method. |
2 | The amounts shown are based on Common Share equivalents. |
3 | 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. |
4 | 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. |
5 | Ratios do not reflect the effect of dividend payments to preferred shareholders and any associated commission costs. |
6 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratio for the year ended November 30, 2008, is 0.98% after taking into account this expense reduction. |
7 | Ratios reflect reductions for dividend payments to preferred shareholders. |
8 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
9 | Additional information relating to contractual expense waivers, which has no effect on net expenses, net investment income and net assets previously reported, has been provided to conform to the current year presentation. |
10 | Represents initial public offering price. |
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report Portfolio of
Investments Summary
Table (unaudited) - Federated Premier
Municipal Income Fund
At November 30, 2009, the Fund's sector composition1 was as follows:
Sector Composition | Percentage of Total Investments2 |
GO State | 16.4% |
GO Local | 12.7% |
Special Tax | 10.4% |
Hospital | 9.1% |
Transportation | 8.4% |
Pre-refunded | 7.9% |
Senior Care | 5.7% |
Water & Sewer | 5.6% |
Education | 5.5% |
Public Power | 5.1% |
Other3 | 13.2% |
TOTAL | 100.0% |
1 | 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 (other than a bond insurer), such as a guarantor, sector classifications are based upon the economic sector and/or revenue source of the third party, as determined by the Fund's Adviser. Securities that are insured by a bond insurer are assigned according to the economic sector and/or revenue source of the underlying obligor. Pre-refunded securities are those whose debt service is paid from escrowed funds, usually U.S. government securities. |
2 | Percentages reflect the fully consolidated asset of any inverse floater trust as presented in the Portfolio of Investments. |
3 | For purposes of this table, sector classifications constitute 86.8% of the Fund's total investments. Remaining sectors have been aggregated under the designation “Other.” |
Portfolio of Investments - Federated Premier Municipal Income Fund
November 30, 2009
Principal Amount |
Value |
Municipal Bonds 98.0% |
Alabama 0.2% |
$350,000 | Courtland, AL IDB, PCR Refunding Bonds (Series 2005A), 5.00% (International Paper Co.), 6/1/2025 | 309,789 |
Arizona 1.3% |
1,000,000 | Phoenix, AZ Civic Improvement Corp. — Water System, Junior Lien Water System Revenue Bonds (Series 2009A), 5.00%, 7/1/2028 | 1,078,120 |
750,000 | Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.50%, 7/15/2027 | 671,850 |
TOTAL | 1,749,970 |
California 12.6% |
2,500,000 | Bay Area Toll Authority, CA, San Francisco Bay Area Toll Bridge Revenue Bonds (Series 2009F-1), 5.00%, 4/1/2028 | 2,629,325 |
1,280,000 | California State, Refunding Economic Recovery Bonds (Series 2009A), 5.00% (California State Fiscal Recovery Fund), 7/1/2018 | 1,367,398 |
2,000,000 | California State, UT GO Various Purpose Bonds, 5.75% (Original Issue Yield: 5.95%), 4/1/2031 | 2,034,500 |
1,500,000 | California State, Various Purpose UT GO Bonds, 5.25%, 10/1/2025 | 1,519,785 |
1,000,000 | California State, Various Purpose UT GO Bonds, 6.00% (Original Issue Yield: 6.10%), 4/1/2038 | 1,017,770 |
1,000,000 | Chula Vista, CA, Industrial Development Refunding Revenue Bonds (Series 2004-B), 5.875% (San Diego Gas & Electric Co.), 2/15/2034 | 1,077,310 |
375,000 | Chula Vista, CA, Industrial Development Refunding Revenue Bonds (Series 2004-D), 5.875% (San Diego Gas & Electric Co.), 1/1/2034 | 403,991 |
260,000 | Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Bonds (Series 2007A-1), 5.75%, 6/1/2047 | 187,036 |
750,000 | Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Revenue Bonds (Series 2003A-2), 7.90% (United States Agency PRF 6/1/2013@100), 6/1/2042 | 912,653 |
1,500,000 | M-S-R Energy Authority, CA, Gas Revenue Bonds (Series 2009A), 7.00% (GTD by Citigroup, Inc.), 11/1/2034 | 1,647,120 |
2,000,000 | Regents of University of California, General Revenue Bonds (Series 2009Q), 5.25%, 5/15/2029 | 2,170,120 |
2,000,000 | San Francisco, CA City & County Airport Commission, Second Series Revenue Bonds (Series 2009E), 5.50%, 5/1/2025 | 2,109,660 |
TOTAL | 17,076,668 |
Colorado 4.4% |
725,000 | Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00% (United States Treasury PRF 12/1/2013@101), 12/1/2023 | 914,667 |
Principal Amount |
Value |
$1,000,000 | Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023 | 888,240 |
500,000 | Colorado Educational & Cultural Facilities Authority, Refunding Revenue Bonds (Series A), 7.00% (Denver Academy)/(Original Issue Yield: 7.25%), 11/1/2023 | 508,490 |
320,000 | Colorado State Higher Education Capital Construction Lease Purchase Financing Program, COP (Series 2008), 5.50% (Original Issue Yield: 5.60%), 11/1/2027 | 341,347 |
250,000 | Conservatory Metropolitan District, CO, LT GO Bonds, 6.75% (United States Treasury PRF 12/1/2013@102), 12/1/2034 | 300,753 |
500,000 | Conservatory Metropolitan District, CO, LT GO Bonds, 7.55% (United States Treasury PRF 12/1/2013@102), 12/1/2032 | 627,205 |
665,000 | Conservatory Metropolitan District, CO, Refunding & Improvement LT GO Bonds, 5.125% (Radian Asset Assurance, Inc. INS), 12/1/2037 | 472,323 |
1,000,000 | Denver, CO Health & Hospital Authority, Revenue Bonds, 6.25% (United States Treasury PRF 12/1/2014@100)/(Original Issue Yield: 6.28%), 12/1/2033 | 1,216,960 |
500,000 | Southlands, CO Metropolitan District No. 1, LT GO Bonds (Series 2004), 7.00% (United States Treasury PRF 12/1/2014@100)/(Original Issue Yield: 7.05%), 12/1/2024 | 627,205 |
TOTAL | 5,897,190 |
Connecticut 1.1% |
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 | 1,139,237 |
275,000 | Connecticut State, UT GO Bonds (Series 2009A), 5.00%, 2/15/2029 | 300,424 |
TOTAL | 1,439,661 |
District of Columbia 1.7% |
2,500,000 | District of Columbia Tobacco Settlement Financing Corp., Asset Backed Revenue Bonds, 6.50% (Original Issue Yield: 6.67%), 5/15/2033 | 2,351,400 |
Florida 4.9% |
540,000 | Broward County, FL Airport System, Airport System Refunding Revenue Bonds (Series 2009O), 5.375% (Original Issue Yield: 5.48%), 10/1/2029 | 553,856 |
400,000 | 1 | Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102)/(Original Issue Yield: 8.95%), 10/1/2033 | 490,120 |
1,235,000 | Harbor Bay, FL Community Development District, Special Assessment Revenue Bonds, 6.75%, 5/1/2034 | 845,036 |
400,000 | Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.25%, 5/1/2034 | 322,108 |
Principal Amount |
Value |
$1,000,000 | Orlando, FL Utilities Commission, Utility System Revenue Bonds (Series 2009A), 5.25%, 10/1/2039 | 1,044,960 |
1,000,000 | South Lake County, FL Hospital District, Revenue Bonds, 6.625% (South Lake Hospital, Inc.), 10/1/2023 | 1,029,980 |
1,000,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2007), 6.65% (Original Issue Yield: 6.70%), 5/1/2040 | 781,080 |
490,000 | Tuscany Reserve Community Development District, FL, Capital Improvement Revenue Bonds (Series 2005A), 5.55%, 5/1/2036 | 255,221 |
990,000 | Verandah West, FL Community Development District, Capital Improvement Revenue Bonds (Series 2003A), 6.625% (Original Issue Yield: 6.75%), 5/1/2033 | 899,049 |
490,000 | Winter Garden Village at Fowler Groves Community Development District, FL, Special Assessment Bonds (Series 2006), 5.65%, 5/1/2037 | 421,425 |
TOTAL | 6,642,835 |
Georgia 3.0% |
1,500,000 | Atlanta, GA Water & Wastewater, Revenue Bonds (Series 2009A), 6.00% (Original Issue Yield: 6.14%), 11/1/2024 | 1,624,650 |
1,000,000 | Atlanta, GA, Tax Allocation Bonds (Series 2005B), 5.60% (Eastside Tax Allocation District)/(Original Issue Yield: 5.65%), 1/1/2030 | 872,490 |
1,500,000 | DeKalb Private Hospital Authority, GA, Revenue Anticipation Certificates (Series 2009), 5.00% (Children's Healthcare of Atlanta, Inc.), 11/15/2024 | 1,527,060 |
TOTAL | 4,024,200 |
Guam 0.3% |
375,000 | Guam Government LO (Section 30), Bonds (Series 2009A), 5.625% (Original Issue Yield: 5.875%), 12/1/2029 | 379,433 |
Hawaii 1.7% |
750,000 | Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series 2009), 6.50% (Hawaiian Electric Co., Inc.), 7/1/2039 | 797,782 |
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 | 1,496,460 |
TOTAL | 2,294,242 |
Illinois 2.5% |
980,000 | Antioch Village, IL Special Service Area No. 1, Special Tax Revenue Bonds, 6.625% (Deercrest Project), 3/1/2033 | 710,431 |
1,000,000 | Chicago, IL Special Assessment, Improvement Revenue Bonds, 6.75% (Lakeshore East Project)/(Original Issue Yield: 6.769%), 12/1/2032 | 901,290 |
420,000 | DuPage County, IL, Special Tax Bonds (Series 2006), 5.625% (Naperville Campus LLC), 3/1/2036 | 302,308 |
Principal Amount |
Value |
$1,000,000 | Illinois Educational Facilities Authority, Refunding Revenue Bonds (Series A), 5.70% (Augustana College)/(Original Issue Yield: 5.90%), 10/1/2032 | 1,001,980 |
625,000 | Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.00% (Landing at Plymouth Place)/(Original Issue Yield: 6.04%), 5/15/2037 | 489,694 |
TOTAL | 3,405,703 |
Indiana 1.2% |
1,930,000 | Indiana Health & Educational Facility Financing Authority, Revenue Bonds (Series 2005), 5.25% (Baptist Homes of Indiana), 11/15/2035 | 1,644,264 |
Kentucky 0.3% |
325,000 | Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.97%), 10/1/2028 | 332,173 |
Maryland 0.4% |
550,000 | Baltimore, MD, Special Obligation Revenue Bonds (Series 2008A), 7.00% (East Baltimore Research Park), 9/1/2038 | 521,367 |
Mississippi 1.2% |
2,000,000 | Mississippi Development Bank, Special Obligation Bonds (Series 2006A), 5.00% (Municipal Energy Agency of Mississippi)/(Syncora Guarantee, Inc. INS), 3/1/2041 | 1,651,180 |
Missouri 0.4% |
500,000 | Missouri Development Finance Board, Infrastructure Facilities Revenue Bonds (Series 2003A), 5.50% (Branson, MO)/(Original Issue Yield: 5.56%), 12/1/2032 | 476,205 |
New Jersey 0.4% |
500,000 | New Jersey EDA, Revenue Bonds, (Series 2004), 5.75% (NJ Dedicated Cigarette Excise Tax)/(Original Issue Yield: 5.89%), 6/15/2029 | 479,610 |
214,016 | 3 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.50% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.72%), 7/1/2023 | 21 |
TOTAL | 479,631 |
New Mexico 0.6% |
750,000 | 1,2 | Jicarilla, NM Apache Nation, Revenue Bonds, 5.50%, 9/1/2023 | 785,100 |
New York 5.8% |
750,000 | Dutchess County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 7.50% (St. Francis Hospital and Health Centers), 3/1/2029 | 728,355 |
800,000 | 1 | New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC), 3/1/2035 |
743,008 |
1,000,000 | New York City, NY Municipal Water Finance Authority, Revenue Bonds, 5.50% (Original Issue Yield: 5.57%), 6/15/2026 | 1,119,120 |
$2,000,000 | New York City, NY Municipal Water Finance Authority, Water & Sewer System Second General Resolution Revenue Bonds (Series Fiscal 2009EE), 5.25% (Original Issue Yield: 5.50%), 6/15/2040 | 2,082,360 |
Principal Amount |
Value |
1,000,000 | New York State Dormitory Authority, Revenue Bonds (Series 2009C), 5.00% (School District Financing Program)/(Assured Guaranty Corp. INS), 10/1/2025 | 1,071,360 |
2,000,000 | Triborough Bridge & Tunnel Authority, NY, General Revenue Bonds (Series 2009A-2), 5.25% (Original Issue Yield: 5.44%), 11/15/2034 | 2,105,020 |
TOTAL | 7,849,223 |
North Carolina 1.4% |
1,000,000 | North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series 2003C), 5.375% (Original Issue Yield: 5.57%), 1/1/2017 | 1,062,500 |
800,000 | North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80% (Arc of North Carolina Projects), 10/1/2034 | 766,472 |
TOTAL | 1,828,972 |
Ohio 1.6% |
1,090,000 | Ohio State Air Quality Development Authority, 5.70% (FirstEnergy Solutions Corp.), 8/1/2020 | 1,140,478 |
500,000 | Ohio State University, General Receipts Bonds (Series 2008A), 5.00%, 12/1/2026 | 537,490 |
500,000 | Ohio State University, General Receipts Bonds (Series 2008A), 5.00%, 12/1/2027 | 534,370 |
TOTAL | 2,212,338 |
Oregon 0.3% |
500,000 | 1 | Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 10/1/2026 | 349,720 |
Pennsylvania 7.0% |
1,000,000 | Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2009), 6.50% (United States Steel Corp.), 5/1/2017 | 1,013,410 |
935,000 | Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF 1/1/2013@101)/(Original Issue Yield: 7.50%), 1/1/2035 | 1,110,462 |
360,000 | Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF 1/1/2013@101)/(Original Issue Yield: 7.50%), 1/1/2035 | 427,558 |
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 | 515,480 |
$2,000,000 | Pennsylvania State Turnpike Commission, Turnpike Subordinate Revenue Bonds (Series 2009D), 5.50%, 12/1/2041 | 2,032,300 |
Principal Amount |
Value |
1,630,000 | Philadelphia, PA Water & Wastewater System, Water and Wastewater Revenue Bonds (Series 2009A), 5.00% (Original Issue Yield: 5.13%), 1/1/2027 | 1,653,716 |
2,500,000 | Philadelphia, PA, UT GO Refunding Bonds (Series 2009A), 5.25% (Assured Guaranty Corp. INS)/(Original Issue Yield: 5.30%), 8/1/2022 | 2,725,575 |
TOTAL | 9,478,501 |
Puerto Rico 1.5% |
2,000,000 | Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue Bonds (First Subordinate Series 2009A), 6.00% (Original Issue Yield: 6.25%), 8/1/2042 | 2,048,420 |
South Carolina 0.8% |
1,170,000 | South Carolina Jobs-EDA, Health System Revenue Bonds (Series A), 5.625% (Bon Secours Health System)/(Original Issue Yield: 5.84%), 11/15/2030 | 1,141,160 |
South Dakota 2.0% |
1,000,000 | Educational Enhancement Funding Corp., SD, Tobacco Revenue Bonds (Series 2002B), 6.50%, 6/1/2032 | 954,620 |
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 | 1,771,630 |
TOTAL | 2,726,250 |
Tennessee 3.7% |
2,000,000 | Johnson City, TN Health & Education Facilities Board, Hospital Refunding Revenue Bonds (Series A), 7.50% (Mountain States Health Alliance)/(MBIA GIC & cash collateral PRF 7/1/2012@103), 7/1/2025 | 2,270,800 |
2,580,000 | Tennessee State School Board Authority, Higher Educational Facilities Second Program Bonds (Series 2008B), 5.50%, 5/1/2038 | 2,762,793 |
TOTAL | 5,033,593 |
Texas 16.5% |
700,000 | Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 7.125% (Wise Regional Health System), 9/1/2034 | 676,102 |
385,000 | HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at Gleannloch Farms, Inc.), 2/15/2027 | 311,203 |
585,000 | HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at Gleannloch Farms, Inc.), 2/15/2037 | 419,088 |
2,000,000 | Harris County, TX Cultural Education Facilities Finance Corp., Refunding Revenue Bonds (Series 2009), 5.625% (St. Luke's Episcopal Hospital), 2/15/2025 | 2,077,720 |
1,500,000 | Harris County, TX Flood Control District, LT GO Refunding Bonds (Series 2006A), 5.00%, 10/1/2026 | 1,613,940 |
$2,000,000 | Houston, TX Airport System, Senior Lien Revenue & Refunding Bonds (Series 2009A), 5.00%, 7/1/2022 | 2,126,860 |
Principal Amount |
Value |
1,500,000 | Lower Colorado River Authority, TX, Refunding Revenue Bonds (Series 2009), 5.25%, 5/15/2029 | 1,562,385 |
1,050,000 | Sabine River Authority, TX, PCR Refunding Bonds (Series 2003B), 6.15% (Texas Competitive Electric Holdings Co. LLC), 8/1/2022 | 543,974 |
10,000,000 | 4 | Spring Branch, TX ISD, LT GO Bonds, 5.250%, 2/1/2034 | 10,534,197 |
500,000 | Tarrant County, TX Cultural Education Facilities Finance Corp., Revenue Bonds, (Series 2006A), 6.00% (Northwest Senior Housing Corp. Edgemere Project), 11/15/2036 | 428,500 |
1,985,000 | Texas State Department of Housing & Community Affairs, Residential Mortgage Revenue Bonds (Series 2009A), 5.30%, 7/1/2034 | 2,018,546 |
TOTAL | 22,312,515 |
Virginia 3.6% |
1,000,000 | Broad Street CDA, VA, Revenue Bonds, 7.50% (Original Issue Yield: 7.625%), 6/1/2033 | 855,240 |
1,400,000 | Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% (Virginia Baptist Homes Obligated Group)/(United States Treasury PRF 12/1/2013@100)/(Original Issue Yield: 7.625%), 12/1/2032 | 1,691,270 |
1,200,000 | Virginia College Building Authority, Educational Facilities Revenue Bonds (Series 2009A), 5.00%, 2/1/2028 | 1,303,776 |
1,000,000 | Virginia Peninsula Port Authority, Coal Terminal Refunding Revenue Bonds (Series 2003), 6.00% (Brinks Co. (The)), 4/1/2033 | 1,014,740 |
TOTAL | 4,865,026 |
Washington 10.6% |
1,000,000 | Washington State Health Care Facilities Authority, Revenue Bonds, 5.00% (Group Health Cooperative)/(Radian Asset Assurance, Inc. INS), 12/1/2036 | 831,180 |
12,790,000 | 4 | Washington State, UT GO Bonds (Series 2008A), 5.000%, 7/1/2030 | 13,558,551 |
TOTAL | 14,389,731 |
Wisconsin 4.1% |
2,000,000 | Wisconsin State General Fund Appropriation, Revenue Bonds (Series 2009A), 6.00% (Wisconsin State)/(Original Issue Yield: 6.10%), 5/1/2036 | 2,180,060 |
1,500,000 | Wisconsin State HEFA, Health Facilities Revenue Bonds (Series A), 5.25% (Ministry Health Care)/(National Public Finance Guarantee Corporation INS)/(Original Issue Yield: 5.38%), 2/15/2032 | 1,392,285 |
160,000 | Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.75% (Blood Center of Wisconsin, Inc.)/(Original Issue Yield: 5.82%), 6/1/2034 | 161,450 |
500,000 | Wisconsin State HEFA, Revenue Bonds, 6.50% (Tomah Memorial Hospital, Inc.)/(Original Issue Yield: 6.75%), 7/1/2023 | 468,300 |
$500,000 | Wisconsin State HEFA, Revenue Bonds, 6.625% (Tomah Memorial Hospital, Inc.)/(Original Issue Yield: 6.875%), 7/1/2028 | 467,605 |
Principal Amount |
Value |
1,000,000 | Wisconsin State HEFA, Revenue Bonds, 7.25% (Community Memorial Hospital)/(Original Issue Yield: 7.45%), 1/15/2033 | 908,760 |
TOTAL | 5,578,460 |
Wyoming 0.9% |
1,200,000 | Sweetwater County, WY PCRB, PCR Refunding Bonds (Series 2006), 5.25% (Idaho Power Co.), 7/15/2026 | 1,228,068 |
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $132,237,507) |
132,502,988 |
Short-Term Municipals 2.0%;5 |
New York 1.2% |
1,600,000 | New York City, NY IDA, Liberty Revenue Bonds (Series 2004 B) Daily VRDNs (One Bryant Park LLC)/(Bank of America N.A. and Citibank NA, New York LOCs), 0.220%, 12/1/2009 | 1,600,000 |
Pennsylvania 0.8% |
800,000 | Philadelphia, PA Authority for Industrial Development Daily VRDNs (Newcourtland Elder Services)/(PNC Bank, N.A. LOC), 0.210%, 12/1/2009 | 800,000 |
300,000 | Philadelphia, PA Hospitals & Higher Education Facilities Authority, (Series 2005A) Daily VRDNs (Children's Hospital of Philadelphia)/(Bank of America N.A. LIQ), 0.190%, 12/1/2009 | 300,000 |
TOTAL | 1,100,000 |
TOTAL SHORT-TERM MUNICIPALS (AT AMORTIZED COST) |
2,700,000 |
TOTAL MUNICIPAL INVESTMENTS — 100.0% (IDENTIFIED COST $134,937,507)6 |
135,202,988 |
OTHER ASSETS AND LIABILITIES — NET7 | (17,185,231) |
LIQUIDATION VALUE OF AUCTION PREFERRED SHARES | (36,575,000) |
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | $81,442,757 |
1 | Denotes a restricted security 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) is subject to a contractual restriction on public sales. At November 30, 2009, these restricted securities amounted to $2,367,948, which represented 1.8% of total market value. |
2 | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At November 30, 2009, these liquid restricted securities amounted to $785,100, which represented 0.6% of total market value. |
3 | Obligor filed for bankruptcy. On September 30, 2008, a Notice of Initial Distribution was received and a portion of the bond was redeemed at par. Subsequent distributions occurred on March 19, 2009 and August 12, 2009. The market value of the remaining par is adjusted to reflect the expected value of future distributions. |
4 | Underlying security in inverse floater structure. |
5 | Current rate and next reset date shown for Variable Rate Demand Notes. |
6 | The cost of investments for federal tax purposes amounts to $117,745,408. |
7 | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total market value at November 30, 2009.
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.)
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.
The following is a summary of the inputs used, as of November 30, 2009, in valuing the Fund's assets carried at fair value:
Valuation Inputs |
Level 1 — Quoted Prices and Investments in Mutual Funds |
Level 2 — Other Significant Observable Inputs |
Level 3 — Significant Unobservable Inputs |
Total |
Debt Securities: |
Municipal Bonds | $ — | $132,502,988 | $ — | $132,502,988 |
Short-Term Municipals | — | 2,700,000 | — | 2,700,000 |
TOTAL SECURITIES | $ — | $135,202,988 | $ — | $135,202,988 |
CDA | — Community Development Authority |
COP | — Certificate of Participation |
EDA | — Economic Development Authority |
EDFA | — Economic Development Finance Authority |
GO | — General Obligation |
GTD | — Guaranteed |
HEFA | — Health and Education Facilities Authority |
HFDC | — Health Facility Development Corporation |
IDA | — Industrial Development Authority |
IDB | — Industrial Development Bond |
INS | — Insured |
ISD | — Independent School District |
LIQ | — Liquidity Agreement |
LO | — Limited Obligation |
LOC(s) | — Letter(s) of Credit |
LT | — Limited Tax |
PCR | — Pollution Control Revenue |
PCRB | — Pollution Control Revenue Bond |
PRF | — Prerefunded |
UT | — Unlimited Tax |
VRDNs | — Variable Rate Demand Notes |
See Notes which are an integral part of the Financial Statements
Annual Shareholder ReportPortfolio of
Investments Summary
Table (unaudited) - Federated Premier
Intermediate Municipal Income Fund
At November 30, 2009, the Fund's sector composition1 was as follows:
Sector Composition | Percentage of Total Investments2 |
GO State | 29.5% |
Special Tax | 10.2% |
Pre-refunded | 8.4% |
Hospital | 7.6% |
Senior Care | 6.5% |
GO Local | 6.0% |
Public Power | 5.3% |
Electric & Gas | 4.9% |
Water & Sewer | 4.4% |
Education | 3.6% |
Other3 | 13.6% |
TOTAL | 100.0% |
1 | 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 (other than a bond insurer), such as a guarantor, sector classifications are based upon the economic sector and/or revenue source of the third party, as determined by the Fund's Adviser. Securities that are insured by a bond insurer are assigned according to the economic sector and/or revenue source of the underlying obligor. Pre-refunded securities are those whose debt service is paid from escrowed funds, usually U.S. government securities. |
2 | Percentages reflect the fully consolidated asset of any inverse floater trust as presented in the Portfolio of Investments. |
3 | For purposes of this table, sector classifications constitute 86.4% of the Fund's total investments. Remaining sectors have been aggregated under the designation “Other.” |
Portfolio of
Investments - Federated Premier
Intermediate Municipal Income Fund
November 30, 2009
Principal Amount |
Value |
Municipal Bonds 97.6% |
Alabama 0.2% |
$350,000 | Courtland, AL IDB, PCR Refunding Bonds (Series 2005A), 5.00% (International Paper Co.), 6/1/2025 | 309,789 |
Arizona 2.5% |
1,500,000 | Arizona Transportation Board, Subordinated Highway Revenue Bonds (Series 2004B), 5.00%, 7/1/2020 | 1,636,500 |
690,000 | Pima County, AZ IDA, PCRBs (Series 2009A), 4.95% (Tucson Electric Power Co.), 10/1/2020 | 696,879 |
1,500,000 | Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.15%, 7/15/2017 | 1,500,825 |
TOTAL | 3,834,204 |
Arkansas 1.5% |
1,000,000 | Arkansas Development Finance Authority, Revenue Bonds, 7.25% (Washington Regional Medical Center)/(United States Agency PRF 2/1/2010@100)/(Original Issue Yield: 7.40%), 2/1/2020 | 1,010,940 |
1,000,000 | Independence County, AR, PCR Refunding Bonds (Series 2005), 5.00% (Entergy Arkansas, Inc.), 1/1/2021 | 976,680 |
300,000 | Jefferson County, AR, PCR Refunding Bonds (Series 2006), 4.60% (Entergy Arkansas, Inc.), 10/1/2017 | 302,697 |
TOTAL | 2,290,317 |
California 7.4% |
570,000 | California Health Facilities Financing Authority, Health Facility Revenue Bonds (Series 2004I), 4.95% TOBs (Catholic Healthcare West), Mandatory Tender 7/1/2014 | 605,220 |
1,705,000 | California State, Refunding Economic Recovery Bonds (Series 2009A), 5.00% (California State Fiscal Recovery Fund), 7/1/2018 | 1,821,418 |
2,000,000 | California State, Various Purpose UT GO Bonds, 5.00%, 10/1/2018 | 2,111,380 |
1,335,000 | California Statewide Communities Development Authority, Proposition 1A Receivables Program (Series 2009), 5.00% (California State), 6/15/2013 | 1,407,237 |
2,000,000 | California Statewide Communities Development Authority, Revenue Bonds (Series 2007), 5.00% (Inland Regional Center), 12/1/2017 | 1,822,080 |
1,680,000 | Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds (Series 2003A-1), 6.25% (United States Agency PRF 6/1/2013@100)/(Original Issue Yield: 6.55%), 6/1/2033 | 1,873,603 |
1,500,000 | San Diego, CA Public Facilities Authority, Senior Sewer Refunding Revenue Bonds (Series 2009B), 5.00%, 5/15/2016 | 1,691,445 |
TOTAL | 11,332,383 |
Principal Amount |
Value |
Colorado 3.4% |
$725,000 | Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00% (United States Treasury PRF 12/1/2013@101), 12/1/2023 | 914,667 |
500,000 | Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023 | 444,120 |
260,000 | Colorado Educational & Cultural Facilities Authority, Refunding Revenue Bonds (Series A), 6.25% (Denver Academy)/(Original Issue Yield: 6.50%), 11/1/2013 | 265,494 |
1,265,000 | Colorado Health Facilities Authority, Revenue Bonds (Series 2005), 5.00% (Covenant Retirement Communities, Inc.), 12/1/2013 | 1,285,430 |
865,000 | Conservatory Metropolitan District, CO, LT GO Bonds, 7.40% (United States Treasury PRF 12/1/2013@102), 12/1/2016 | 1,052,515 |
600,000 | Denver (City & County), CO, Airport System Revenue Bonds (Series 2009A), 5.00% (Denver, CO City & County Department of Aviation), 11/15/2016 | 667,476 |
500,000 | Southlands, CO Metropolitan District No. 1, LT GO Bonds (Series 2004), 7.00% (United States Treasury PRF 12/1/2014@100)/(Original Issue Yield: 7.05%), 12/1/2024 | 627,205 |
TOTAL | 5,256,907 |
District of Columbia 0.7% |
1,000,000 | District of Columbia, Ballpark Revenue Bonds (Series 2006B-1), 5.25% (FGIC and National Public Finance Guarantee Corporation INS), 2/1/2016 | 1,033,960 |
Florida 5.0% |
600,000 | 1 | Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102), (Original Issue Yield: 8.95%), 10/1/2033 | 735,180 |
1,000,000 | Citizens Property Insurance Corp. FL, Senior Secured Bonds (Series 2009A-1), 5.00% (Assured Guaranty Corp. INS), 6/1/2014 | 1,061,950 |
180,000 | Fishhawk Community Development District II, Special Assessment Revenue Bonds (Series 2004B), 7.04% (Original Issue Yield: 7.087%), 11/1/2014 | 169,258 |
1,000,000 | Florida Municipal Loan Council, Revenue Bonds (Series 2003B), 5.25% (National Public Finance Guarantee Corporation INS), 12/1/2019 | 1,043,030 |
385,000 | Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.00%, 5/1/2020 | 330,738 |
500,000 | Orlando, FL, Senior Tourist Development Tax Revenue Bonds (Series 2008A), 5.25% (6th Cent Contract Payments)/(Assured Guaranty Corp. INS), 11/1/2020 | 545,450 |
1,500,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2007), 6.375%, 5/1/2017 | 1,327,080 |
$2,390,000 | University of Central Florida Athletics Association, Inc., FL, COP (Series 2004A), 5.125% (FGIC and National Public Finance Guarantee Corporation INS), 10/1/2022 | 2,410,912 |
TOTAL | 7,623,598 |
Principal Amount |
Value |
Georgia 4.3% |
1,500,000 | Atlanta, GA Water & Wastewater, Revenue Bonds (Series 2009A), 6.00%, 11/1/2019 | 1,686,675 |
1,400,000 | Burke County, GA Development Authority, PCRBs (Series 2007E), 4.75% TOBs (Oglethorpe Power Corp.)/(National Public Finance Guarantee Corporation INS), Mandatory Tender 4/1/2011 | 1,451,884 |
500,000 | DeKalb Private Hospital Authority, GA, Revenue Anticipation Certificates (Series 2009), 5.00% (Children's Healthcare of Atlanta, Inc.), 11/15/2016 | 543,705 |
750,000 | Fulton County, GA Residential Care Facilities, Revenue Bonds (Series 2004A), 6.00% (Canterbury Court), 2/15/2022 | 671,438 |
2,115,000 | Municipal Electric Authority of Georgia, Revenue Bonds (Series 2002A), 5.25% (National Public Finance Guarantee Corporation INS), 11/1/2015 | 2,267,597 |
TOTAL | 6,621,299 |
Guam 0.9% |
1,250,000 | Guam Government LO (Section 30), Bonds (Series 2009A), 5.00%, 12/1/2015 | 1,301,500 |
Hawaii 1.1% |
1,550,000 | Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 7.00% (Kahala Nui)/(Original Issue Yield: 7.00%), 11/15/2012 | 1,662,391 |
Illinois 3.8% |
1,825,000 | Chicago, IL Sales Tax, Refunding Revenue Bonds, 5.00% (FSA INS), 1/1/2019 | 2,024,436 |
1,000,000 | Chicago, IL Special Assessment, Improvement Bonds (Series 2002), 6.625% (Lakeshore East Project)/(Original Issue Yield: 6.637%), 12/1/2022 | 947,140 |
1,000,000 | Illinois Educational Facilities Authority, Refunding Revenue Bonds (Series A), 5.00% (Augustana College)/(Original Issue Yield: 5.05%), 10/1/2014 | 1,033,280 |
875,000 | Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.00% (Landing at Plymouth Place), 5/15/2025 | 753,882 |
1,000,000 | Illinois Finance Authority, Refunding Revenue Bonds (Series 2005A), 5.00% (Depaul University), 10/1/2014 | 1,082,340 |
TOTAL | 5,841,078 |
Indiana 1.4% |
1,050,000 | Indiana Health & Educational Facility Financing Authority, Revenue Bonds (Series 2005), 5.00% (Baptist Homes of Indiana), 11/15/2014 | 1,069,719 |
$955,000 | Indiana State Finance Authority, Environmental Facilities Refunding Revenue Bonds (Series 2009B), 4.90% (Indianapolis, IN Power & Light Co.), 1/1/2016 | 1,011,039 |
TOTAL | 2,080,758 |
Principal Amount |
Value |
Kansas 0.7% |
1,055,000 | Butler County, KS Union School District No. 394, UT GO Bonds, 5.00% (FSA INS), 9/1/2020 | 1,146,405 |
Kentucky 1.4% |
1,335,000 | Kentucky EDFA, Revenue Bonds (Series 2000A), 6.25% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.45%), 10/1/2012 | 1,384,248 |
665,000 | Kentucky EDFA, Revenue Bonds (Series 2000A), 6.25% (Norton Healthcare, Inc.)/(United States Treasury PRF 10/1/2010@101)/(Original Issue Yield: 6.45%), 10/1/2012 | 703,251 |
TOTAL | 2,087,499 |
Louisiana 1.6% |
981,000 | Lakeshore Villages Master Community Development District, LA, Special Assessment Bonds (Series 2007), 5.25% (Original Issue Yield: 5.378%), 7/1/2017 | 805,980 |
1,000,000 | Louisiana Local Government Environmental Facilities Community Development Authority, Revenue Bonds, 5.375% (BRCC Facilities Corp.)/(National Public Finance Guarantee Corporation INS), 12/1/2014 | 1,074,680 |
635,000 | West Feliciana Parish, LA, PCRBs, 7.00% (Entergy Gulf States Louisiana LLC), 11/1/2015 | 636,022 |
TOTAL | 2,516,682 |
Maryland 10.0% |
13,500,000 | 2 | Maryland State, UT GO Bonds (Second Series 2008), 5.000%, 7/15/2022 | 15,381,765 |
Michigan 2.5% |
2,000,000 | Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco Corp.)/(United States Treasury PRF 5/1/2012@100), 5/1/2018 | 2,229,260 |
1,500,000 | Michigan State Building Authority, Refunding Revenue Bonds (Series 2009I), 5.00% (Michigan State), 10/15/2016 | 1,636,560 |
TOTAL | 3,865,820 |
Mississippi 0.6% |
1,000,000 | Mississippi Hospital Equipment & Facilities Authority, Refunding & Improvement Revenue Bonds , 5.75% (Southwest Mississippi Regional Medical Center)/(Original Issue Yield: 5.85%), 4/1/2023 | 962,100 |
Nevada 2.4% |
2,000,000 | Clark County, NV, IDRBs (Series 2003C), 5.45% TOBs (Southwest Gas Corp.), Mandatory Tender 3/1/2013 | 2,042,780 |
$975,000 | Las Vegas, NV, Local Improvement Special Assessment Bonds (Series 2004), 5.50% (Providence SID No. 607), 6/1/2013 | 922,174 |
815,000 | North Las Vegas, NV SID No. 60, Subordinate LT Obligation Refunding Bonds (Series 2006B), 5.00% (Aliante SID No. 60)/(Original Issue Yield: 5.05%), 12/1/2017 | 730,713 |
TOTAL | 3,695,667 |
Principal Amount |
Value |
New Jersey 0.3% |
500,000 | New Jersey EDA, Refunding Revenue Bonds (Series A), 5.75% (Winchester Gardens at Ward Homestead)/(Original Issue Yield: 5.75%), 11/1/2024 | 498,980 |
255,556 | 3 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.00% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.25%), 7/1/2013 | 26 |
TOTAL | 499,006 |
New Mexico 2.5% |
1,000,000 | Farmington, NM, Refunding Revenue Bonds (Series 2002A), 4.00% TOBs (El Paso Electric Co.)/(FGIC INS), Mandatory Tender 8/1/2012 | 1,000,440 |
655,000 | Mariposa East Public Improvement District, NM, UT GO Bonds, Series 2006, 5.75%, 9/1/2021 | 555,040 |
2,000,000 | New Mexico State, UT GO Capital Project Bonds, 5.00%, 3/1/2016 | 2,333,920 |
TOTAL | 3,889,400 |
New York 7.6% |
305,000 | Dutchess County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 7.25% (St. Francis Hospital and Health Centers), 3/1/2019 | 305,177 |
2,000,000 | Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.15%), 7/1/2020 | 2,026,760 |
800,000 | 1 | New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.25% (7 World Trade Center LLC), 3/1/2015 |
791,048 |
2,000,000 | New York City, NY, UT GO Bonds (Fiscal 2002 Series D), 5.00% (Original Issue Yield: 5.21%), 6/1/2017 | 2,089,500 |
2,000,000 | New York State Dormitory Authority, Revenue Bonds (Series 2009C), 5.00% (School District Financing Program)/(Assured Guaranty Corp. INS), 10/1/2015 | 2,283,300 |
2,000,000 | Tobacco Settlement Financing Corp., NY, (Series 2003B-1C), 5.50% (New York State), 6/1/2019 | 2,135,140 |
2,000,000 | Tobacco Settlement Financing Corp., NY, Asset-Backed Revenue Bonds (Series 2003A-1), 5.25% (New York State)/(AMBAC INS), 6/1/2022 | 2,091,540 |
TOTAL | 11,722,465 |
North Carolina 4.6% |
1,000,000 | North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series D), 5.50%, 1/1/2014 | 1,094,630 |
$965,000 | North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.50% (Arc of North Carolina Projects), 10/1/2024 | 930,800 |
3,000,000 | North Carolina Municipal Power Agency No. 1, Electric Revenue Bonds (Series 2003A), 5.50%, 1/1/2014 | 3,341,280 |
Principal Amount |
Value |
1,500,000 | North Carolina State, Public Improvement UT GO Bonds (Series 2005A), 5.00%, 3/1/2020 | 1,658,325 |
TOTAL | 7,025,035 |
Ohio 2.4% |
2,000,000 | Buckeye Tobacco Settlement Financing Authority, OH, Tobacco Settlement Asset-Backed Bonds (Series 2007A-2), 5.875% (Original Issue Yield: 5.95%), 6/1/2030 | 1,677,060 |
1,000,000 | Cuyahoga, OH Community College District, General Receipts Revenue Bonds (Series 2002A), 5.00% (AMBAC INS), 12/1/2022 | 1,026,230 |
925,000 | Ohio State Air Quality Development Authority, Environmental Improvement Refunding Revenue Bonds (Series 1995), 5.00% TOBs (Marathon Oil Corp.), Mandatory Tender 11/1/2011 | 971,102 |
TOTAL | 3,674,392 |
Oregon 1.0% |
500,000 | 1 | Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 10/1/2026 | 349,720 |
1,000,000 | Yamhill County, OR Hospital Authority, Revenue Bonds, 6.50% (Friendsview Retirement Community)/(United States Treasury PRF 12/1/2013@101), 12/1/2018 | 1,198,330 |
TOTAL | 1,548,050 |
Pennsylvania 12.1% |
1,090,000 | Allegheny County, PA Hospital Development, Health System Revenue Bonds, (Series 2000B), 9.25% (West Penn Allegheny Health System)/(United States Treasury PRF 11/15/2010@102)/(Original Issue Yield: 9.30%), 11/15/2015 | 1,201,071 |
435,000 | Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2005) , 5.50% (United States Steel Corp.), 11/1/2016 | 428,475 |
1,000,000 | Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2009), 6.50% (United States Steel Corp.), 5/1/2017 | 1,013,410 |
12,000,000 | 2 | Commonwealth of Pennsylvania, UT GO Bonds 5.000%, 3/15/2025 | 13,274,160 |
1,000,000 | Lancaster, PA Higher Education Authority, College Revenue Bonds, 5.00% (Franklin & Marshall College), 4/15/2019 | 1,083,760 |
1,500,000 | Pennsylvania State Higher Education Facilities Authority, Health System Revenue Bonds (Series A), 6.25% (UPMC Health System), 1/15/2018 | 1,552,200 |
TOTAL | 18,553,076 |
South Carolina 2.1% |
$1,000,000 | Georgetown County, SC Environmental Improvements, Refunding Revenue Bonds (Series 2000A), 5.95% (International Paper Co.), 3/15/2014 | 1,036,980 |
Principal Amount |
Value |
2,000,000 | Kershaw County, SC Public Schools Foundation, Installment Purchase Revenue Bonds (Series 2006), 5.00% (Kershaw County, SC School District)/(CIFG Assurance NA INS), 12/1/2019 | 2,134,820 |
TOTAL | 3,171,800 |
South Dakota 1.1% |
1,715,000 | Educational Enhancement Funding Corp., SD, Tobacco Revenue Bonds (Series 2002B), 6.50%, 6/1/2032 | 1,637,173 |
Tennessee 0.8% |
1,000,000 | Tennessee State, GO Bonds (Series 2009A), 5.00%, 5/1/2016 | 1,176,180 |
Texas 5.7% |
1,000,000 | Abilene, TX HFDC, Retirement Facilities Revenue Bonds (Series 2003A), 6.50% (Sears Methodist Retirement), 11/15/2020 | 937,460 |
1,000,000 | Brazos River Authority, TX, PCR Refunding Bonds (Series 2003D), 5.40% TOBs (Texas Competitive Electric Holdings Co. LLC), Mandatory Tender 10/1/2014 | 638,380 |
1,000,000 | Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 6.50% (Wise Regional Health System), 9/1/2014 | 1,047,170 |
1,000,000 | Houston, TX Airport System, Senior Lien Revenue & Refunding Bonds (Series 2009A), 5.00%, 7/1/2018 | 1,110,380 |
390,000 | Montgomery County, TX, UT GO Bonds (Series 2002A), 5.20% (FSA INS)/(Original Issue Yield: 5.29%), 3/1/2021 | 416,454 |
165,000 | Sabine River Authority, TX, PCR Refunding Bonds (Series 2006), 4.95% (Southwestern Electric Power Co.)/(National Public Finance Guarantee Corporation INS), 3/1/2018 | 170,221 |
545,000 | Tarrant County, TX Cultural Education Facilities Finance Corp., Retirement Facility Revenue Bonds (Series 2007), 5.00% (Air Force Village), 5/15/2016 | 537,397 |
500,000 | Tarrant County, TX Cultural Education Facilities Finance Corp., Revenue Bonds, Series 2006A, 6.00% (Northwest Senior Housing Corp. Edgemere Project), 11/15/2026 | 459,615 |
1,000,000 | Tyler, TX HFDC, Hospital Revenue Bonds, 5.25% (Mother Frances Hospital), 7/1/2012 | 1,025,930 |
2,235,000 | West Harris County, TX Regional Water Authority, Water System Revenue Bonds (Series 2006), 5.00% (AMBAC INS), 12/15/2021 | 2,378,554 |
TOTAL | 8,721,561 |
Principal Amount |
Value |
Virginia 2.3% |
$187,000 | Bell Creek CDA, VA, Special Assessment Revenue Bonds (Series 2003), 6.75%, 3/1/2022 | 168,119 |
1,000,000 | Broad Street Community Development Authority, VA, Revenue Bonds, 7.10% (Original Issue Yield: 7.15%), 6/1/2016 | 994,060 |
1,000,000 | Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% (Virginia Baptist Homes Obligated Group)/(United States Treasury PRF 12/1/2013@100)/(Original Issue Yield: 7.50%), 12/1/2023 | 1,224,920 |
1,000,000 | Virginia Public Schools Authority, School Financing Bonds (1997 Resolution) (Series 2009B), 5.00%, 8/1/2016 | 1,169,740 |
TOTAL | 3,556,839 |
Washington 1.3% |
500,000 | Skagit County, WA Public Hospital District No. 1, Refunding Revenue Bonds (Series 2003), 6.00% (Skagit Valley Hospital), 12/1/2018 | 507,620 |
1,490,000 | Tobacco Settlement Authority, WA, Tobacco Settlement Asset Backed Revenue Bonds, 6.50% (Original Issue Yield: 6.65%), 6/1/2026 | 1,505,362 |
TOTAL | 2,012,982 |
Wisconsin 2.4% |
200,000 | Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.50% (Blood Center of Wisconsin, Inc.)/(Original Issue Yield: 5.583%), 6/1/2024 | 204,634 |
500,000 | Wisconsin State HEFA, Revenue Bonds (Series 2004A), 6.125% (Southwest Health Center)/(Original Issue Yield: 6.15%), 4/1/2024 | 502,115 |
2,000,000 | Wisconsin State HEFA, Revenue Bonds, 5.75% (SynergyHealth, Inc.), 11/15/2015 | 2,134,260 |
830,000 | Wisconsin State HEFA, Revenue Bonds, 7.125% (Community Memorial Hospital)/(Original Issue Yield: 7.25%), 1/15/2022 | 811,184 |
TOTAL | 3,652,193 |
TOTAL MUNICIPAL BONDS (IDENTIFIED COST $146,677,284) |
149,684,274 |
Short-Term Municipals 2.4%;4 |
Michigan 1.4% |
2,200,000 | Michigan State Hospital Finance Authority, (Series 1999 A) Weekly VRDNs (Covenant Retirement Communities, Inc.)/(Bank of America N.A. LOC), 0.260%, 12/3/2009 | 2,200,000 |
Pennsylvania 1.0% |
1,250,000 | Philadelphia, PA Authority for Industrial Development Daily VRDNs (Newcourtland Elder Services)/(PNC Bank, N.A. LOC), 0.210%, 12/1/2009 | 1,250,000 |
Principal Amount |
Value |
$300,000 | Philadelphia, PA Hospitals & Higher Education Facilities Authority, (Series 2002-B) Daily VRDNs (Children's Hospital of Philadelphia)/(JPMorgan Chase Bank, N.A. LIQ), 0.190%, 12/1/2009 | 300,000 |
TOTAL | 1,550,000 |
TOTAL SHORT-TERM MUNICIPALS (AT AMORTIZED COST) |
3,750,000 |
TOTAL MUNICIPAL INVESTMENTS — 100.0% (IDENTIFIED COST $150,427,284)5 |
153,434,274 |
OTHER ASSETS AND LIABILITIES — NET6 | (17,936,392) |
LIQUIDATION VALUE OF AUCTION PREFERRED SHARES | (41,900,000) |
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | $93,597,882 |
At November 30, 2009 the Fund held no securities that are subject to the federal alternative minimum tax (AMT).
1 | Denotes a restricted security 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) is subject to a contractual restriction on public sales. At November 30, 2009, these restricted securities amounted to $1,875,948, which represented 1.2% of total market value. |
2 | Underlying security in inverse floater structure. |
3 | Obligor filed for bankruptcy. On September 30, 2008, a Notice of Initial Distribution was received and a portion of the bond was redeemed at par. Subsequent distributions occurred on March 19, 2009 and August 12, 2009. The market value of the remaining par is adjusted to reflect the expected value of future distributions. |
4 | Current rate and next reset date shown for Variable Rate Demand Notes. |
5 | The cost of investments for federal tax purposes amounts to $131,168,940. |
6 | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
Note: The categories of investments are shown as a percentage of total net assets at November 30, 2009.
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.)
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.
Annual Shareholder ReportValuation Inputs |
Level 1 — Quoted Prices and Investments in Mutual Funds |
Level 2 — Other Significant Observable Inputs |
Level 3 — Significant Unobservable Inputs |
Total |
Debt Securities: |
Municipal Bonds | $ — | $149,684,274 | $ — | $149,684,274 |
Short-Term Municipals | — | 3,750,000 | — | 3,750,000 |
TOTAL SECURITIES | $ — | $153,434,274 | $ — | $153,434,274 |
The following acronyms are used throughout this portfolio:
AMBAC | — American Municipal Bond Assurance Corporation |
CDA | — Community Development Authority |
COP | — Certificate of Participation |
EDA | — Economic Development Authority |
EDFA | — Economic Development Finance Authority |
FGIC | — Financial Guaranty Insurance Company |
FSA | — Financial Security Assurance |
GO | — General Obligation |
HEFA | — Health and Education Facilities Authority |
HFDC | — Health Facilities Development Corporation |
IDA | — Industrial Development Authority |
IDB | — Industrial Development Bond |
IDRBs | — Industrial Development Revenue Bonds |
INS | — Insured |
LIQ | — Liquidity Agreement |
LO | — Limited Obligation |
LOC(s) | — Letter(s) of Credit |
LT | — Limited Tax |
PCR | — Pollution Control Revenue |
PCRBs | — Pollution Control Revenue Bonds |
PRF | — Prerefunded |
SID | — Special Improvement District |
TOBs | — Tender Option Bonds |
UT | — Unlimited Tax |
VRDNs | — Variable Rate Demand Notes |
See Notes which are an integral part of the Financial Statements
Annual Shareholder ReportStatements of Assets and Liabilities
November 30, 2009
Federated Premier Municipal Income Fund |
Federated Premier Intermediate Municipal Income Fund |
Assets: |
Total investments in securities, at value | $135,202,988 | $153,434,274 |
Cash | 16,500 | 49,652 |
Income receivable | 2,040,683 | 2,293,394 |
Receivable for investments sold | — | 5,150 |
TOTAL ASSETS | 137,260,171 | 155,782,470 |
Liabilities: |
Payable for floating rate certificate securities (Note 2) | 17,100,000 | 19,125,000 |
Payable for investments purchased | 1,523,475 | 540,790 |
Income distribution payable — Common Shares | 553,424 | 549,344 |
Income distribution payable — Preferred Shares | 4,693 | 635 |
Payable for Directors'/Trustees' fees | 2,604 | 2,621 |
Accrued expenses | 58,218 | 66,198 |
TOTAL LIABILITIES | 19,242,414 | 20,284,588 |
Auction Market Preferred Shares (1,463 and 1,676 shares, respectively, authorized and issued at $25,000 per share) | $36,575,000 | $41,900,000 |
Net Assets Applicable to Common Shares Consist of: |
Paid-in capital | $87,139,845 | $98,564,352 |
Net unrealized appreciation of investments | 265,481 | 3,006,990 |
Accumulated net realized loss on investments | (6,633,813) | (8,432,293) |
Undistributed net investment income | 671,244 | 458,833 |
TOTAL NET ASSETS APPLICABLE TO COMMON SHARES | $81,442,757 | $93,597,882 |
Common Shares Outstanding, ($0.01 par value, unlimited shares authorized) | 6,148,789 | 6,953,476 |
Net asset value per share | $13.25 | $13.46 |
Investments, at identified cost | $134,937,507 | $150,427,284 |
See Notes which are an integral part of the Financial Statements
Annual Shareholder ReportStatements of Operations
Year Ended November 30, 2009
Federated Premier Municipal Income Fund |
Federated Premier Intermediate Municipal Income Fund |
Investment Income: |
Interest | $7,427,083 | $7,427,458 |
Expenses: |
Investment adviser fee (Note 5) | $627,727 | $730,121 |
Administrative personnel and services fee (Note 5) | 150,000 | 150,000 |
Custodian fees | 4,956 | 4,933 |
Transfer and dividend disbursing agent fees and expenses | 34,371 | 34,149 |
Directors'/Trustees' fees | 12,636 | 12,779 |
Auditing fees | 42,908 | 43,209 |
Legal fees | 5,498 | 8,684 |
Portfolio accounting fees | 75,654 | 77,408 |
Printing and postage | 21,741 | 22,878 |
Insurance premiums | 4,083 | 4,106 |
Auction agent fees | 6,501 | 6,501 |
Trailer commission fees (Note 2) | 100,214 | 113,330 |
Interest and trust expenses (Note 2) | 131,616 | 164,124 |
Miscellaneous | 71,942 | 72,577 |
TOTAL EXPENSES | 1,289,847 | 1,444,799 |
Waivers and Reimbursement (Note 5): |
Waiver of investment adviser fee | $(118,724) | $(138,306) |
Waiver of adminstrative personnel and services fee | (150,000) | (150,000) |
Reimbursement of other operating expenses | (151,207) | (92,292) |
TOTAL WAIVERS AND REIMBURSEMENT | (419,931) | (380,598) |
Net expenses | 869,916 | 1,064,201 |
Net investment income | 6,557,167 | 6,363,257 |
Realized and Unrealized Gain (Loss) on Investments: |
Net realized loss on investments | (2,789,157) | (4,052,217) |
Net change in unrealized depreciation of investments | 15,896,294 | 14,846,199 |
Net realized and unrealized gain on investments | 13,107,137 | 10,793,982 |
Income distributions declared to Preferred Shareholders | (143,262) | (161,038) |
Change in net assets resulting from operations applicable to common shares | $19,521,042 | $16,996,201 |
See Notes which are an integral part of the Financial Statements
Annual Shareholder ReportStatements of Changes in Net Assets
Year Ended November 30 | Federated Premier Municipal Income Fund |
Federated Premier Intermediate Municipal Income Fund | ||
2009 | 2008 | 2009 | 2008 | |
Increase (Decrease) in Net Assets | ||||
Operations: | ||||
Net investment income | $6,557,167 | $6,837,312 | $6,363,257 | $6,771,960 |
Net realized loss on investments | (2,789,157) | (1,660,730) | (4,052,217) | (948,465) |
Net change in unrealized appreciation/depreciation of investments | 15,896,294 | (20,364,198) | 14,846,199 | (15,016,855) |
Distributions from net investment income — Preferred Shares | (143,262) | (1,510,335) | (161,038) | (1,675,137) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS APPLICABLE TO COMMON SHARES | 19,521,042 | (16,697,951) | 16,996,201 | (10,868,497) |
Distributions to Common Shareholders: |
||||
Distributions from net investment income — Common Shares | (6,209,927) | (4,932,705) | (6,139,077) | (4,793,417) |
Share Transactions Applicable to Common Shares: |
||||
Net asset value of shares issued to shareholders in payment of distributions declared | 141,293 | 92,689 | 85,482 | — |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 141,293 | 92,689 | 85,482 | — |
Change in net assets | 13,452,408 | (21,537,967) | 10,942,606 | (15,661,914) |
Net Assets Applicable to Common Shares: |
||||
Beginning of period | 67,990,349 | 89,528,316 | 82,655,276 | 98,317,190 |
End of period | $81,442,757 | $67,990,349 | $93,597,882 | $82,655,276 |
Undistributed net investment income included at end of period | $671,244 | $458,085 | $458,833 | $366,512 |
See Notes which are an integral part of the Financial Statements
Annual Shareholder ReportNotes to Financial Statements
November 30, 2009
Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund (individually referred to as the “Fund”, or collectively as the “Funds”) are registered under the Investment Company Act of 1940, as amended (the “Act”), as diversified, closed-end management investment companies. Each Fund's investment objective 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 Funds in the preparation of their financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), each Fund generally values investments as follows:
If the Funds cannot obtain a price or price evaluation from a pricing service for an investment, the Funds may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Funds use the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Funds could purchase or sell an investment at the price used to calculate each Fund's NAV.
Fair Valuation and Significant Events Procedures
The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. 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 asked for the investment (a “mid” evaluation). The Funds normally use bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Funds normally use mid evaluations for other types of fixed-income securities and 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 Trustees.
Annual Shareholder ReportThe Funds may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Funds will determine the fair value of the investment using another method approved by the Trustees.
Investment Income, 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. Non-cash dividends included in dividend income, if any, are recorded at fair value. Distributions to common shareholders are recorded on the ex-dividend date and are declared and paid monthly. Distributions to preferred shareholders are recorded daily and paid weekly at a rate set through auction procedures or under each Fund's Statement of Preferences. The dividend rate to preferred shareholders for Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund at November 30, 2009, was 0.155% and 0.166%, respectively.
Each auction requires the participation of one or more Broker-Dealers. The auction agent, currently Deutsche Bank Trust Company Americas, will enter into agreements with one or more Broker-Dealers selected by the Funds, which provide for the participation of those Broker-Dealers in auctions for preferred shares. The auction agent will pay each Broker-Dealer after each auction, from funds provided by the Funds. The trailer commissions for Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund for the year ended November 30, 2009 were $100,214 and $113,330, respectively.
Premium and Discount Amortization
All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.
Federal Taxes
It is each Fund's policy to comply with the Subchapter M provision of the Internal Revenue 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 year ended November 30, 2009, the Funds did not have a liability for any uncertain tax positions. The Annual Shareholder ReportWhen-Issued and Delayed Delivery Transactions
The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain 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.
Inverse Floater Structures
The Funds may participate in Inverse Floater Structures in which fixed-rate, tax-exempt municipal bonds purchased by the Funds are transferred to a trust. The trust subsequently issues two or more variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One or more of these variable-rate securities pays interest based on a floating rate set by a remarketing agent at predetermined intervals. A residual-interest tax-exempt security, which is transferred to the Funds, is also created by the trust and pays interest based on the remaining cash flow of the trust, after payment of interest on the other securities and various expenses of the trust.
The Funds account for the transfer of bonds to the trusts as secured borrowings, with the securities transferred remaining in the Funds' investments, and the related floating rate notes reflected as Fund liabilities under the caption, “Payable for floating rate certificate securities” in the Statements of Assets and Liabilities. At November 30, 2009, for Federated Premier Municipal Income Fund investments with a value of $24,092,748 are held by the trust and serve as collateral for the $17,100,000 in floating-rate certificate securities outstanding at that date, and for Federated Premier Intermediate Municipal Income Fund investments with a value of $28,655,925 are held by the trust and serve as collateral for the $19,125,000 in floating-rate certificate securities outstanding at that date. The Federated Premier Municipal Income Fund and the Federated Premier Intermediate Municipal Income Fund recorded interest and trust expenses of $131,616 and $164,124, respectively, for these investments for the year ended November 30, 2009.
While these inverse floater structures are accounted for as secured borrowings, the Funds' Adviser has determined that they do not constitute borrowings for purposes of any fundamental limitation on borrowings that may be applicable to the Funds.
Restricted Securities
The Funds 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 Funds 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 Annual Shareholder ReportAdditional information on restricted securities, excluding securities purchased under Rule 144A, if applicable, that have been deemed liquid by the Trustees, held at November 30, 2009, is as follows:
Federated Premier Municipal Income Fund:
Security | Acquisition Date | Acquisition Cost | Market Value |
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102)/(Original Issue Yield: 8.95%), 10/1/2033 | 5/9/2003 | $400,000 | $490,120 |
Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 10/1/2026 | 6/9/2006 | $500,000 | $349,720 |
New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC), 3/1/2035 | 3/15/2005 | $800,000 | $743,008 |
Federated Premier Intermediate Municipal Income Fund:
Security | Acquisition Date | Acquisition Cost | Market Value |
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida Convention and Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102), (Original Issue Yield: 8.95%), 10/1/2033 | 5/9/2003 | $600,000 | $735,180 |
Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 10/1/2026 | 6/9/2006 | $500,000 | $349,720 |
New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.25% (7 World Trade Center LLC), 3/1/2015 | 3/15/2005 | $800,000 | $791,048 |
Other
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 from those estimated.
Annual Shareholder ReportThe following tables summarize share activity:
Federated Premier Municipal Income Fund |
Year Ended November 30 | 2009 | 2008 |
Shares issued to shareholders in payment of distributions declared | 10,995 | 6,638 |
TOTAL CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 10,995 | 6,638 |
Federated Premier Intermediate Municipal Income Fund |
Year Ended November 30 | 2009 | 2008 |
Shares issued to shareholders in payment of distributions declared | 6,495 | — |
TOTAL CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 6,495 | — |
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due in part to differing treatments for discount accretion/premium amortization on debt securities and inverse floater structures.
For the year ended November 30, 2009, permanent differences identified and reclassified among the components of net assets were as follows:
Increase (Decrease) | |
Undistributed Net Investment Income (Loss) |
Accumulated Net Realized Gains (Losses) |
Federated Premier Municipal Income Fund | $9,181 | $(9,181) |
Federated Premier Intermediate Municipal Income Fund | $29,179 | $(29,179) |
Net investment income (loss), net realized gains (losses) and net assets were not affected by this reclassification.
The tax character of distributions as reported on the Statements of Changes in Net Assets for the years ended November 30, 2009 and 2008, was as follows:
2009 Tax-Exempt Income |
2008 Tax-Exempt Income |
Federated Premier Municipal Income Fund | $6,353,189 | $6,443,040 |
Federated Premier Intermediate Municipal Income Fund | $6,300,115 | $6,468,554 |
Federated Premier Municipal Income Fund |
Federated Premier Intermediate Municipal Income Fund |
Undistributed tax-exempt income | $671,244 | $458,833 |
Net unrealized appreciation | $357,580 | $3,140,334 |
Capital loss carryforwards | $(6,725,912) | $(8,565,637) |
The difference between book-basis and tax-basis net unrealized appreciation/depreciation is attributable to differing treatments for the deferral of losses on wash sales, discount accretion/premium amortization on debt securities and inverse floater structures.
At November 30, 2009, the following amounts apply for federal income tax purposes:
Cost of Investments |
Unrealized Appreciation |
Unrealized Depreciation |
Net Unrealized Appreciation |
Federated Premier Municipal Income Fund | $117,745,408 | $5,544,896 | $5,187,316 | $357,580 |
Federated Premier Intermediate Municipal Income Fund | $131,168,940 | $5,949,624 | $2,809,290 | $3,140,334 |
At November 30, 2009, Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund had capital loss carryforwards of $6,725,912 and $8,565,637, respectively, which will reduce the Funds' taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal income tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:
2011 | 2012 | 2013 | 2015 | 2016 | 2017 | Total Capital Loss Carryforwards |
Federated Premier Municipal Income Fund |
$ — | $1,497,121 | $678,904 | $ — | $1,763,799 | $2,786,088 | $6,725,912 |
Federated Premier Intermediate Municipal Income Fund |
$5,504 | $1,598,165 | $1,175,977 | $615,196 | $1,122,663 | $4,048,132 | $8,565,637 |
5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
Each Fund has entered into an Investment Management Agreement (the “Agreement”) with Federated Investment Management Company (the “Adviser”), to serve as investment manager to the Funds. The Agreement provides for an annual management fee, payable daily, at the annual rate of 0.55% of each Fund's managed assets.
Annual Shareholder ReportAdministrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Funds with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:
Administrative Fee | Average Aggregate Daily Net Assets of the Federated Funds |
0.150% | on the first $5 billion |
0.125% | on the next $5 billion |
0.100% | on the next $10 billion |
0.075% | on assets in excess of $20 billion |
The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the year ended November 30, 2009, FAS waived its entire fee of $150,000 on each Fund.
Interfund Transactions
During the year ended November 30, 2009, the Funds engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees, and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and were as follows:
Purchases | Sales |
Federated Premier Municipal Income Fund | $84,270,000 | $71,900,000 |
Federated Premier Intermediate Municipal Income Fund | $50,965,000 | $56,305,000 |
General
Certain Officers and Trustees of the Funds are Officers and Directors or Trustees of the above companies.
Annual Shareholder ReportOn February 13, 2003, Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund offered 2,147 and 2,441 Auction Market Preferred Shares (AMPS), respectively. The AMPS are redeemable at the option of the Funds at the redemption price of $25,000 per share plus an amount equal to accumulated, but unpaid dividends thereon through the redemption date. As of November 30, 2009, Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund currently have outstanding 1,463 and 1,676 AMPS, respectively.
On July 17, 2008, the Funds' Trustees approved a plan to use inverse floater structures to refinance a portion of the Funds' outstanding AMPS. During the year ended November 30, 2009, Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund redeemed $7,500,000 and $9,000,000, representing 300 and 360 of their outstanding preferred shares, respectively, at liquidation value, using proceeds that arose from the use of the inverse floater structures. During the year ended November 30, 2008, Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund redeemed $9,600,000 and $10,125,000, representing 384 and 405 of their outstanding preferred shares, respectively, at liquidation value, using proceeds that arose from the use of the inverse floater structures.
Whenever AMPS are outstanding, common shareholders will not be entitled to receive any distributions from the Funds unless all accrued dividends on preferred shares have been paid, the Funds satisfy the 200% asset coverage requirement, and certain other requirements imposed by any Nationally Recognized Statistical Ratings Organizations (NRSROs) rating the preferred shares have been met. Should these requirements not be met, or should dividends accrued on the AMPS not be paid, the Funds may be restricted in their ability to declare dividends to common shareholders or may be required to redeem certain of the AMPS. At November 30, 2009, there were no such restrictions on the Funds.
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended November 30, 2009, were as follows:
Purchases | Sales |
Federated Premier Municipal Income Fund | $88,336,585 | $96,341,835 |
Federated Premier Intermediate Municipal Income Fund | $60,901,861 | $70,569,415 |
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Funds, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Funds to borrow from other participating affiliated funds. As of November 30, 2009, there were no outstanding loans. During the year ended November 30, 2009, the program was not utilized.
Annual Shareholder ReportSince October 2003, Federated Investors, Inc. and related entities (collectively, “Federated”), and various Federated funds (Federated Funds) have been named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Federated Funds from the SEC, the Office of the New York State Attorney General (NYAG), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated entities have also been named as defendants in several additional lawsuits that are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Federated Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Federated Fund redemptions, reduced sales of Federated Fund shares, or other adverse consequences for the Federated Funds.
Management has evaluated subsequent events through January 25, 2010, the date the financial statements were issued, and determined that no events have occurred that require additional disclosure.
11. FEDERAL TAX INFORMATION (UNAUDITED)
For the year ended November 30, 2009, 100.0% of the distributions from net investment income for each Fund is exempt from federal income tax, other than the federal AMT.
Annual Shareholder ReportReport of Independent Registered Public Accounting Firm
TO THE BOARD OF Trustees AND SHAREHOLDERS OF Federated premier municipal income fund and federated premier intermediate municipal income fund:
We have audited the accompanying statements of assets and liabilities of Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund (the “Funds”) including the portfolios of investments, as of November 30, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2009 by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Boston, Massachusetts
January 25, 2010
Board of Trustees and Fund Officers
The Board is responsible for managing the Funds' business affairs and for exercising all the Funds' powers except those reserved for the shareholders. The following tables give information about each Board member and the senior officers of the Funds. Where required, the tables separately list Board members who are “interested persons” of the Funds (i.e., “Interested” Board members) and those who are not (i.e., “Independent” Board members). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Board members listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2009, the Federated Fund Complex consisted of 43 investment companies (comprising 145 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Board member oversees all portfolios in the Federated Fund Complex.
INTERESTED TRUSTEES BACKGROUND
Name Birth Date Positions Held with Funds Date Service Began |
Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
Year of Term Expiration |
John F. Donahue*+ Birth Date: July 28, 1924 TRUSTEE Began serving: December 2002 |
Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.; Chairman of the
Federated Fund Complex's Executive Committee. Previous Positions: Chairman of the Federated Fund Complex; Trustee, Federated Investment Management Company and Chairman and Director, Federated Investment Counseling. |
2010 |
J. Christopher Donahue* Birth Date: April 11, 1949 PRESIDENT AND TRUSTEE Began serving: December 2002 |
Principal Occupations: Principal Executive Officer and President of the Federated Fund Complex; Director or Trustee of some of the Funds in
the Federated Fund Complex; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global
Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services
Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
2011 |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
+ | Member of Executive Committee |
INDEPENDENT TRUSTEES BACKGROUND
Name Birth Date Address Positions Held with Funds Date Service Began |
Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
Year of Term Expiration |
John T. Conroy, Jr., Ph. D.++ Birth Date: June 23, 1937 Investment Properties Corporation 3838 North Tamiami Trail Suite 402 Naples, FL TRUSTEE Began serving: December 2002 |
Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman of the Board, Investment Properties Corporation; Partner
or Trustee in private real estate ventures in Southwest Florida; Assistant Professor of Theology, Blessed Edmund Rice School for Pastoral Ministry. Previous Positions: President, Investment Properties Corporation; Senior Vice President, John R. Wood and Associates, Inc., Realtors; President, Naples Property Management, Inc. and Northgate Village Development Corporation. |
2010 |
Nicholas P. Constantakis++** Birth Date: September 3, 1939 TRUSTEE Began serving: December 2002 |
Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director and Chairman of the Audit Committee, Michael Baker Corporation (architecture, engineering and construction services). Previous Position: Partner, Andersen Worldwide SC. |
2011 |
John F. Cunningham++ Birth Date: March 5, 1943 353 El Brillo Way Palm Beach, FL TRUSTEE Began serving: December 2002 |
Principal Occupations: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc. |
2011 |
Maureen Lally-Green++ Birth Date: July 5, 1949 TRUSTEE Began serving: August 2009 |
Principal Occupation: Director or Trustee of the Federated Fund Complex; Director, Office of Church Relations, Diocese of
Pittsburgh; Adjunct professor of law, Duquesne University School of Law. Other Directorships Held: Director, Auberle; Trustee, St. Francis University; Director, Ireland Institute of Pittsburgh; Director, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Saint Thomas More Society, Allegheny County; Director, Carlow University. Previous Positions: Pennsylvania Superior Court Judge. |
2010 |
Name Birth Date Address Positions Held with Funds Date Service Began |
Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
Year of Term Expiration |
Peter E. Madden+ ++ Birth Date: March 16, 1942 One Royal Palm Way 100 Royal Palm Way Palm Beach, FL TRUSTEE Began serving: December 2002 |
Principal Occupation: Director or Trustee and Chairman of the Board of Directors or Trustees of the Federated Fund
Complex. Other Directorships Held: Board of Overseers, Babson College. Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, Chief Operating Officer and Director, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange. |
2010 |
Charles F. Mansfield, Jr.**++ Birth Date: April 10, 1945 80 South Road Westhampton Beach, NY TRUSTEE Began serving: December 2002 |
Principal Occupations: Director or Trustee, Chairman of the Audit Committee of the Federated Fund Complex; Management
Consultant. Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). |
2012 |
R. James Nicholson++ Birth Date: February 4, 1938 P.O. Box 6396 McLean, VA TRUSTEE Began serving: January 2008 |
Principal Occupations: Director or Trustee of the Federated Fund Complex; Senior Counsel, Brownstein Hyatt Farber Schrek, P.C.; Former
Secretary of the U.S. Dept. of Veterans Affairs; Former U.S. Ambassador to the Holy See; Former Chairman of the Republican National Committee. Other Directorships Held: Director, Horatio Alger Association; Director, The Daniels Fund. Previous Positions: Colonel, U.S. Army Reserve; Partner, Calkins, Kramer, Grimshaw and Harring, P.C.; General Counsel, Colorado Association of Housing and Building; Chairman and CEO, Nicholson Enterprises, Inc. (real estate holding company); Chairman and CEO, Renaissance Homes of Colorado. |
2012 |
Name Birth Date Address Positions Held with Funds Date Service Began |
Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
Year of Term Expiration |
Thomas M. O'Neill++ ** Birth Date: June 14, 1951 95 Standish Street P.O. Box 2779 Duxbury, MA TRUSTEE Began serving: October 2006 |
Principal Occupations: Director or Trustee of the Federated Fund Complex; Managing Director and Partner, Navigator Management Company, L.P.
(investment and strategic consulting). Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College. Previous Positions: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; and Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber). |
2010 |
John S. Walsh+**++ Birth Date: November 28, 1957 2604 William Drive Valparaiso, IN TRUSTEE Began serving: December 2002 |
Principal Occupations: Director or Trustee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of
construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Previous Position: Vice President, Walsh & Kelly, Inc. |
2010 |
James F. Will++ Birth Date: October 12, 1938 721 E. McMurray Road McMurray, PA TRUSTEE Began serving: April 2006 |
Principal Occupations: Director or Trustee of the Federated Fund Complex; formerly, Vice Chancellor and President, Saint Vincent
College. Other Directorships Held: Trustee, Saint Vincent College; Alleghany Corporation. Previous Positions: Chairman, President and Chief Executive Officer, Armco, Inc.; President and Chief Executive Officer, Cyclops Industries; President and Chief Operating Officer, Kaiser Steel Corporation. |
2012 |
+ | Member of Executive Committee |
** | Member of Audit Committee |
++ | Member of Nominating Committee |
Name Birth Date Positions Held with Funds Date Service Began |
Principal Occupation(s) for Past Five Years and Previous Position(s) |
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Began serving: November 1993 |
Principal Occupations: Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President,
Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Richard A. Novak Birth Date: December 25, 1963 TREASURER Began serving: January 2006 |
Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated
Administrative Services; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. Previous Positions: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur Andersen & Co. |
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Began serving: December 2002 |
Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated
Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Brian P. Bouda Birth Date: February 28, 1947 SENIOR VICE PRESIDENT AND CHIEF COMPLIANCE OFFICER Began serving: August 2004 |
Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Complex; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of its subsidiaries. Mr. Bouda joined Federated in 1999 and is a member of the American Bar Association and the State Bar Association of Wisconsin. |
Mary Jo Ochson Birth Date: September 12, 1953 CHIEF INVESTMENT OFFICER, TAX-FREE FIXED INCOME, AND VICE PRESIDENT Began serving: December 2002 |
Principal Occupations: Mary Jo Ochson was the Fund's Portfolio Manager from December 2002 through December 2009. Ms. Ochson was named Chief Investment Officer of tax-exempt fixed-income products in 2004 and is a Vice President of the Trust. She joined Federated in 1982 and has been a Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser since 1996. Ms. Ochson is a Chartered Financial Analyst and received her M.B.A. in Finance from the University of Pittsburgh. |
Last Meeting of Shareholders (unaudited)
FEDERATED PREMIER MUNICIPAL INCOME FUND
An Annual Meeting of Fund shareholders (Common Shares and Preferred Shares) was held on September 18, 2009. On July 8, 2009, the record date for shareholders voting at the meeting, there were 6,145,129 total outstanding shares. The following item was considered by shareholders and the results of their voting are listed below. Unless otherwise noted, each matter was approved.
ELECTION OF THREE CLASS III TRUSTEES - COMMON SHARES AND PREFERRED SHARES:
1. R. James Nicholson
For | Withheld Authority to Vote |
5,733,129 | 130,263 |
2. Charles F. Mansfield, Jr.
For | Withheld Authority to Vote |
5,748,338 | 115,054 |
3. James F. Will
For | Withheld Authority to Vote |
5,723,730 | 139,662 |
An Annual Meeting of Fund shareholders (Preferred Shares) was held on September 18, 2009. On July 8, 2009, the record date for shareholders voting at the meeting, there were 1,463 total outstanding shares. The following item was considered by shareholders and the results of their voting are listed below. Unless otherwise noted, each matter was approved.
ELECTION OF TWO TRUSTEES - PREFERRED SHARES ONLY:
1. Peter E. Madden
For | Withheld Authority to Vote |
1,178 | 0 |
2. John S. Walsh
For | Withheld Authority to Vote |
1,178 | 0 |
The following Trustees of the Fund continued their terms as Trustees of the Fund: John F. Donahue, J. Christopher Donahue, John T. Conroy, Jr., Nicholas P. Constantakis, John F. Cunningham, and Thomas M. O'Neill.
FEDERATED PREMIER INTERMEDIATE MUNICIPAL INCOME FUND
An Annual Meeting of Fund shareholders (Common Shares and Preferred Shares) was held on September 18, 2009. On July 8, 2009, the record date for shareholders voting at the meeting, there were 6,948,657 total outstanding shares. The following item was considered by shareholders and the results of their voting are listed below. Unless otherwise noted, each matter was approved.
ELECTION OF Three CLASS Iii TRUSTEES - COMMON SHARES AND PREFERRED SHARES:
1. R. James Nicholson
For | Withheld Authority to Vote |
6,372,233 | 195,022 |
2. Charles F. Mansfield, Jr.
For | Withheld Authority to Vote |
6,391,328 | 175,927 |
3. James F. Will
For | Withheld Authority to Vote |
6,383,493 | 183,762 |
An Annual Meeting of Fund shareholders (Preferred Shares) was held on September 18, 2009. On July 8, 2009, the record date for shareholders voting at the meeting, there were 1,676 total outstanding shares. The following item was considered by shareholders and the results of their voting are listed below. Unless otherwise noted, each matter was approved.
Annual Shareholder Report1. Peter E. Madden
For | Withheld Authority to Vote |
588 | 0 |
2. John S. Walsh
For | Withheld Authority to Vote |
588 | 0 |
The following Trustees of the Fund continued their terms as Trustees of the Fund: John F. Donahue, J. Christopher Donahue, John T. Conroy, Jr., Nicholas P. Constantakis, John F. Cunningham, and Thomas M. O'Neill.
Annual Shareholder ReportEvaluation and Approval of Advisory Contract - May 2009
FEDERATED PREMIER MUNICIPAL INCOME FUND
(“FMN” OR THE “FUND”)
Federated Premier Intermediate Municipal Income Fund (“fpt” OR the “Fund”)
The Fund's Board reviewed each Fund's investment advisory contract at meetings held in May 2009. The Board's decision regarding these contracts reflects the exercise of its business judgment on whether to continue the existing arrangements.
In this connection, the Federated funds' Board had previously appointed a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated fund. The Senior Officer has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent, written evaluation that covered topics discussed below. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.
During its review of these contracts, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered judicial decisions concerning allegedly excessive investment advisory fees, which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize “economies of scale” as a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for what might be viewed as like services, and the cost to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
Annual Shareholder ReportThe Senior Officer reviewed reports compiled by Federated, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other regulated investment companies, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees.
FMN's performance fell below the median of the relevant peer group for the one-year, three-year and five-year periods covered by the report. The Board discussed FMN's performance with the Adviser and recognized the efforts being undertaken by the Adviser. The Board will continue to monitor these efforts and the performance of FMN.
FPT's performance fell below the median of the relevant peer group for the one-year, three-year and five-year periods covered by the report. The Board discussed FPT's performance with the Adviser and recognized the efforts being undertaken by the Adviser. The Board will continue to monitor these efforts and the performance of FPT.
The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the Annual Shareholder ReportFederated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.
The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.
The Board also considered whether the Fund might benefit from “economies of scale” and noted that, as a “closed-end fund,” the Fund has made an offering of a fixed number of common shares, and preferred shares contemplated at the time of the Fund's initial public offering. The Board noted that the Fund has not made and does not expect to make additional offerings to raise more assets, although the Fund may make additional offerings to replace the existing preferred shares. Accordingly, the Board noted that the Fund is unlikely to grow materially in size and, as a consequence, there are no meaningful “economies of scale” to be realized from internal growth. The Board concluded that this was not a relevant consideration in its overall evaluation.
It was noted in the materials for the Board meeting that for the period covered by the report, FMN's investment advisory fee was below the median of the relevant peer group. The Board reviewed the fees and other expenses of FMN with the Adviser and was satisfied that the overall expense structure of FMN remained competitive.
It was noted in the materials for the Board meeting that for the period covered by the report, FPT's investment advisory fee was above the median of the relevant peer group. The Board reviewed the fees and other expenses of FPT with the Adviser and was satisfied that the overall expense structure of FPT remained competitive. The Board will continue to monitor advisory fees and other expenses borne by FPT.
Annual Shareholder ReportIn its decision to continue an existing investment advisory contract, the Board was mindful of 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 an advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.
The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangements.
Annual Shareholder ReportDividend Reinvestment Plan
The following description of each Fund's Dividend Reinvestment Plan (the “Plan”) is furnished to you annually as required by federal securities laws.
Unless the registered owner of a Fund's common shares elects to receive cash by contacting Computershare Trust Co., N.A. (the “Plan Administrator”), all dividends declared on common shares of the Fund will be automatically reinvested by the Plan Administrator, as agent for shareholders in the Plan, in additional common shares of the Fund. Common shareholders who elect not to participate in the Plan will receive all dividends and other distributions in cash. You may elect not to participate in the Plan and to receive all dividends in cash by contacting the Plan Administrator at the address set forth below if your Shares are registered in your name, or by contacting your bank, broker, or other nominee if your Shares are held in street or other nominee name. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by written notice to the Plan Administrator. Such notice will be effective for a dividend if received and processed by the Plan Administrator prior to the dividend record date; otherwise the notice will be effective with respect to any subsequently declared dividend or other distribution. Some brokers may automatically elect to receive cash on your behalf and may reinvest that cash in additional common shares of the Fund for you. If you wish for all dividends declared on your common shares to be automatically reinvested pursuant to the Plan, please contact your broker.
The Plan Administrator will open an account for each common shareholder under the Plan in the same name in which the shareholder's common shares are registered. Whenever the Fund declares a dividend or other distribution payable in cash (together, a “dividend”), non-participants in the Plan will receive cash, and participants in the Plan will receive the equivalent in common shares. The common shares will be acquired by the Plan Administrator for the participants' accounts, depending upon the circumstances described below, either: (1) through receipt from the Fund of additional authorized but unissued common shares (“newly issued common shares”); or (2) by purchase of outstanding common shares on the open market (“open-market purchases”) on the New York Stock Exchange or elsewhere. If, on the payment date for a dividend, the closing market price plus estimated brokerage commissions per common share is equal to or greater than the net asset value (NAV) per common share, the Plan Administrator will invest the dividend amount on behalf of the participants in newly issued common shares. The number of newly issued common shares to be credited to each participant's account will be determined by dividing the dollar amount of the dividend by the NAV per common share on the payment date; provided that, if the NAV is less than or equal to 95% of the closing market value on the payment date, the dollar amount of the dividend will be divided by 95% of the closing market price per common share on the payment date. If, on the payment date for any dividend, Annual Shareholder ReportIn the event of a market discount on the payment date for any dividend, the Plan Administrator will have until the last business day before the next date on which the common shares trade on an “ex-dividend” basis or 30 days after the payment date for such dividend, whichever is sooner (the “last purchase date”), to invest the dividend amount in common shares acquired in open-market purchases. It is contemplated that the Funds will pay monthly income dividends. Therefore, the period during which open-market purchases can be made will exist only from the payment date of each dividend through the day before the next “ex-dividend” date, which will be approximately ten days. If, before the Plan Administrator has completed its open-market purchases, the market price per common share exceeds the NAV per common share, the average per share purchase price paid by the Plan Administrator may exceed the NAV of the common shares, resulting in the acquisition of fewer common shares than if the dividend had been paid in newly issued common shares on the dividend payment date. Because of the foregoing difficulty with respect to open-market purchases, the Plan provides that if the Plan Administrator is unable to invest the full dividend amount in open-market purchases during the purchase period or if the market discount shifts to a market premium during the purchase period, the Plan Administrator may cease making open-market purchases and may invest the uninvested portion of the dividend amount in newly issued common shares at the NAV per common share at the close of business on the last purchase date; provided that, if the NAV is less than or equal to 95% of the then current market price per common share, the dollar amount of the dividend will be divided by 95% of the market price on the payment date.
The Plan Administrator maintains all shareholders' accounts in the Plan and furnishes written confirmation of all transactions in the accounts, including information needed by shareholders for tax records. Common shares in the account of each Plan participant will be held by the Plan Administrator on behalf of the Plan participant, and each shareholder proxy will include those shares purchased or received pursuant to the Plan. The Plan Administrator will forward all proxy solicitation materials to participants and vote proxies for shares held under the Plan in accordance with the instructions of the participants.
In the case of record shareholders such as banks, brokers, or nominees which hold common shares for others who are the beneficial owners, the Plan Administrator will administer the Plan on the basis of the number of common shares certified from time to time by the record holder as held for the account of beneficial owners who participate in the Plan.
Annual Shareholder ReportEach Fund reserves the right to amend or terminate its Plan. There is no direct service charge to participants with regard to purchases in the Plan; however, each Fund reserves the right to amend its Plan to include a service charge payable by the participants.
All correspondence or questions concerning the Plan should be directed to the Plan Administrator, Computershare Trust Company, N.A., P.O. Box 43011, Providence, RI 02940-3011 or by telephone at (800) 730-6001.
The address of the principal office of the Funds is 4000 Ericsson Drive, Warrendale, PA 15086-7561.
The Funds' transfer agent is Computershare Trust Company, N.A., P.O. Box 43011, Providence, RI 02940-3011.
Disclosure Update
Federated Premier Municipal Income Fund will maintain a dollar-weighted average portfolio maturity of 10 to 30 years. Previously, it maintained a dollar-weighted average portfolio maturity of 15 to 30 years.
As previously, Federated Premier Municipal Income Fund will continue to maintain a dollar-weighted average duration of 13 years or less. Federated Premier Municipal Income Fund's average portfolio maturity represents an average based on the actual stated maturity dates of the debt securities in Federated Premier Municipal Income Fund's portfolio, except that: (1) variable-rate securities are deemed to mature at the next interest-rate adjustment date, unless subject to a demand feature; (2) variable-rate securities subject to a demand feature are deemed to mature on the longer of the next interest-rate adjustment date or the date on which principal can be recovered through demand; (3) floating-rate securities subject to a demand feature are deemed to mature on the date on which the principal can be recovered through demand; and (4) securities being hedged with futures contracts may be deemed to have a longer maturity, in the case of purchases of futures contracts, and a shorter maturity, in the case of sales of futures contracts, than they would otherwise be deemed to have. The average portfolio maturity of the Fund is dollar-weighted based upon the market value of Federated Premier Municipal Income Fund's securities at the time of calculation. Federated Premier Municipal Income Annual Shareholder ReportMary Jo Ochson is no longer a co-portfolio manager of Federated Premier Municipal Income Fund or Federated Premier Intermediate Municipal Income Fund. Co-portfolio managers R.J. Gallo and Lee R. Cunningham, who have acted as such since the inception of Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund, remain primarily responsible for the day-to-day management of Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund.
Annual Shareholder ReportA description of the policies and procedures that each Fund uses to determine how to vote proxies relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. 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 from Federated's Web site at FederatedInvestors.com. To access this information go to the “Products” section of the Web site, select “Closed-End Funds,” select the name of the Fund, then select “Shareholder and Regulatory Reports” from the left menu. This information is also available directly from the EDGAR database on the SEC's Web site at www.sec.gov.
Quarterly Portfolio Schedule
Each Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on “Form N-Q.” These filings are available on the SEC's Web site at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the “Products” section of the Federated Investors Web site at FederatedInvestors.com by clicking on “Closed-End Funds,” selecting the name of the Fund, then selecting “Portfolio Holdings” from the left menu.
Source of Distributions - Notice
Under the federal securities laws, the Funds are required to provide a notice to shareholders regarding the source of distributions made by the Funds if such distributions are from sources other than ordinary investment income. In addition, important information regarding the Funds' distributions, if applicable, is available in the “Products” section of Federated's Web site at FederatedInvestors.com. To access this information from the “Products” section of the Web site, click on the “Notice to Shareholders - Source of Distribution” link under “Related Information.”
Annual Shareholder ReportIn October 2009, the Funds' Chief Executive Officer submitted to the New York Stock Exchange the annual certification as to compliance with the Exchange's Corporate Governance Listing Standards required by Section 303A.12(a) of the Exchange's Listed Company Manual. The certification was unqualified.
The Funds' reports on Form N-CSR and Form N-Q filed with the SEC during the past fiscal year, including the annual report for the year ended November 30, 2008, have contained the certifications of the Funds' Chief Executive Officer and Chief Financial Officer regarding the quality of the Funds' public disclosure required by Section 302 of the Sarbanes-Oxley Act.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERYIn 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 itsSemi-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@federatedinvestors.com.
Annual Shareholder ReportClosed-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.
Federated Premier Municipal Income Fund
Federated Premier Intermediate Municipal Income Fund
Federated
Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call
1-800-341-7400.
Federated Securities Corp., Distributor
Cusip 31423M105
Cusip 31423M204
Cusip 31423P108
Cusip 31423P207
29861 (1/10)
Privacy
Policy Also Enclosed
See Page i, ii, and iii
Federated is a registered mark of Federated Investors, Inc.
2010
© Federated Investors, Inc.
Item 12. | Exhibits |
The following exhibits are filed with this report:
(a) (2) |
Certifications of Principal Executive Officer and Principal Financial Officer. | |
(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 Premier Municipal Income Fund
By | /S/ RICHARD A. NOVAK | |
Richard A. Novak Principal Financial Officer |
Date June 22, 2010
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 June 22, 2010
By | /S/ RICHARD A. NOVAK | |
Richard A. Novak Principal Financial Officer |
Date June 22, 2010