Federated Premier Intermediate Municipal Income Fund
May 31, 2010
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
EVALUATION
AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND
PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO
SCHEDULE
SOURCE OF DISTRIBUTIONS -
NOTICE
Financial Highlights - Federated Premier Municipal Income Fund
(For a Common Share Outstanding Throughout Each Period)
Six
Months Ended (unaudited) 5/31/2010 | Year Ended November 30, | ||||
2009 | 2008 | 2007 | 2006 | 2005 | |
Net
Asset Value, Beginning of Period | $13.25 | $11.08 | $14.60 | $15.56 | $15.05 | $14.66 |
Income
From Investment Operations: | |||||
Net investment income1 | 0.53 | 1.07 | 1.12 | 1.12 | 1.12 | 1.12 |
Net realized and unrealized gain (loss) on investments, swap contracts and futures contracts | 0.61 | 2.13 | (3.59) | (0.96) | 0.55 | 0.43 |
Distributions to preferred shareholders from net investment income2 | (0.01) | (0.02) | (0.25) | (0.32) | (0.29) | (0.19) |
TOTAL FROM INVESTMENT OPERATIONS | 1.13 | 3.18 | (2.72) | (0.16) | 1.38 | 1.36 |
Less Distributions to Common Shareholders: | |||||
Distributions from net investment income | (0.53) | (1.01) | (0.80) | (0.80) | (0.87) | (0.97) |
Net Asset Value, End of Period | $13.85 | $13.25 | $11.08 | $14.60 | $15.56 | $15.05 |
Market Price, End of Period | $14.34 | $14.47 | $9.37 | $13.92 | $15.80 | $14.44 |
Total Return at Net Asset Value3 | 8.69% | 29.89% | (19.45)% | (1.01)% | 9.51% | 9.49% |
Total Return at Market Price4 | 2.91% | 67.59% | (28.31)% | (7.03)% | 15.90% | 7.75% |
Ratios to Average Net Assets: | |||||
Net expenses5 | 1.03%6 | 1.03% | 0.98%7 | 0.85% | 0.85% | 0.85% |
Net expenses excluding interest and trust expenses on inverse floater structures5 | 0.85%6 | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% |
Net investment income8 | 7.81%6 | 8.59% | 6.37% | 5.33% | 5.49% | 6.16% |
Expense waiver/reimbursement9 | 0.45%6 | 0.56% | 0.54% | 0.47%10 | 0.45%10 | 0.45%10 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $85,240 | $81,443 | $67,990 | $89,528 | $95,291 | $92,013 |
Portfolio turnover | 14% | 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 Share11 |
5/31/2010 | $36,575,000 | $83,264 | $50,008 | $25,004 | $25,000 |
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. Total returns for periods of less than one year are not annualized. |
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 | Computed on an annualized basis. |
7 | 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. |
8 | Ratios reflect reductions for dividend payments to preferred shareholders. |
9 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
10 | 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. |
11 | Represents initial public offering price. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder ReportFinancial Highlights - Federated Premier Intermediate Municipal Income Fund
(For a Common Share Outstanding Throughout Each Period)
Six
Months Ended (unaudited) 5/31/2010 | Year Ended November 30, | ||||
2009 | 2008 | 2007 | 2006 | 2005 | |
Net
Asset Value, Beginning of Period | $13.46 | $11.90 | $14.15 | $14.83 | $14.41 | $14.53 |
Income
From Investment Operations: | |||||
Net investment income1 | 0.43 | 0.92 | 0.97 | 0.99 | 0.96 | 0.92 |
Net realized and unrealized gain (loss) on investments, swap contracts and futures contracts | 0.25 | 1.54 | (2.29) | (0.66) | 0.44 | (0.08) |
Distributions to preferred shareholders from net investment income2 | (0.01) | (0.02) | (0.24) | (0.32) | (0.29) | (0.20) |
TOTAL FROM INVESTMENT OPERATIONS | 0.67 | 2.44 | (1.56) | 0.01 | 1.11 | 0.64 |
Less Distributions to Common Shareholders: | |||||
From net investment income | (0.45) | (0.88) | (0.69) | (0.69) | (0.69) | (0.76) |
Net Asset Value, End of Period | $13.68 | $13.46 | $11.90 | $14.15 | $14.83 | $14.41 |
Market Price, End of Period | $13.27 | $13.62 | $9.37 | $12.50 | $13.81 | $12.68 |
Total Return at Net Asset Value3 | 5.04% | 21.24% | (11.47)% | 0.10% | 7.94% | 4.46% |
Total Return at Market Price4 | 0.71% | 56.22% | (20.62)% | (4.80)% | 14.63% | (0.66)% |
Ratios to Average Net Assets: | |||||
Net expenses5 | 1.05%6 | 1.08% | 0.98%7 | 0.89% | 0.89% | 0.89% |
Net expenses excluding interest and trust expenses on inverse floater structures | 0.89%6 | 0.89% | 0.89% | 0.89% | 0.89% | 0.89% |
Net investment income8 | 6.40%6 | 7.01% | 5.43% | 4.63% | 4.61% | 4.97% |
Expense waiver/reimbursement9 | 0.35%6 | 0.43% | 0.45% | 0.42%10 | 0.39%10 | 0.40%10 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $95,269 | $93,598 | $82,655 | $98,317 | $103,017 | $100,124 |
Portfolio turnover | 19% | 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 Share11 |
5/31/2010 | $41,900,000 | $81,843 | $50,002 | $25,001 | $25,000 |
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. Total returns for periods of less than one year are not annualized. |
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 | Computed on an annualized basis. |
7 | 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. |
8 | Ratios reflect reductions for dividend payments to preferred shareholders. |
9 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
10 | 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. |
11 | Represents initial public offering price. |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder ReportPortfolio of Investments Summary Table (unaudited) - Federated Premier Municipal Income Fund
At May 31, 2010, the Fund's sector composition1 was as follows:
Sector Composition | Percentage of Total Investments2 |
GO Local | 14.6% |
GO State | 12.5% |
Hospital | 12.1% |
Special Tax | 10.6% |
Transportation | 10.0% |
Electric & Gas | 5.8% |
Senior Care | 5.8% |
Pre-refunded | 5.7% |
Public Power | 5.3% |
Water & Sewer | 4.9% |
Other3 | 12.7% |
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 87.3% of the Fund's investments. Remaining sectors have been aggregated under the designation “Other.” |
Portfolio of Investments - Federated Premier Municipal Income Fund
May 31, 2010 (unaudited)
Principal Amount | Value |
Municipal Bonds 99.7% |
Alabama 0.5% |
$350,000 | Courtland, AL IDB, PCR Refunding Bonds (Series 2005A), 5.00% (International Paper Co.), 6/1/2025 | 324,174 |
415,000 | Selma, AL IDB, Gulf Opportunity Zone Bonds (Series 2010A), 5.80% (International Paper Co.), 5/1/2034 | 419,565 |
TOTAL | 743,739 |
Arizona 2.0% |
2,000,000 | Pima County, AZ IDA, Revenue Bonds (Series 2008B), 5.75% (Tucson Electric Power Co.), 9/1/2029 | 2,044,540 |
750,000 | Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.50%, 7/15/2027 | 702,202 |
TOTAL | 2,746,742 |
California 8.6% |
2,000,000 | Bay Area Toll Authority, CA, San Francisco Bay Area Toll Bridge Revenue Bonds (Series 2009F-1), 5.00%, 4/1/2028 | 2,127,680 |
1,280,000 | California State, Refunding Economic Recovery Bonds (Series 2009A), 5.00% (California State Fiscal Recovery Fund), 7/1/2018 | 1,452,352 |
1,000,000 | California State, Various Purpose UT GO Bonds, 6.00% (Original Issue Yield: 6.10%), 4/1/2038 | 1,088,570 |
260,000 | Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Bonds (Series 2007A-1), 5.75%, 6/1/2047 | 189,714 |
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 | 893,460 |
1,500,000 | M-S-R Energy Authority, CA, Gas Revenue Bonds (Series 2009A), 7.00% (GTD by Citigroup, Inc.), 11/1/2034 | 1,753,110 |
2,000,000 | Regents of University of California, General Revenue Bonds (Series 2009Q), 5.25%, 5/15/2029 | 2,172,140 |
2,000,000 | San Francisco, CA City & County Airport Commission, Second Series Revenue Bonds (Series 2009E), 5.50%, 5/1/2025 | 2,207,460 |
TOTAL | 11,884,486 |
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 | 897,137 |
1,000,000 | Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023 | 985,430 |
500,000 | Colorado Educational & Cultural Facilities Authority, Refunding Revenue Bonds (Series A), 7.00% (Denver Academy)/(Original Issue Yield: 7.25%), 11/1/2023 | 520,880 |
Principal Amount | Value |
$230,000 | Colorado State Higher Education Capital Construction Lease Purchase Financing Program, COP (Series 2008), 5.50% (Original Issue Yield: 5.60%), 11/1/2027 | 247,475 |
90,000 | Colorado State Higher Education Capital Construction Lease Purchase Financing Program, COP (Series 2008), 5.50% (United States Treasury & Agency PRF 11/1/2018@100)/(Original Issue Yield: 5.60%), 11/1/2027 | 107,363 |
250,000 | Conservatory Metropolitan District, CO, LT GO Bonds, 6.75% (United States Treasury PRF 12/1/2013@102), 12/1/2034 | 295,972 |
500,000 | Conservatory Metropolitan District, CO, LT GO Bonds, 7.55% (United States Treasury PRF 12/1/2013@102), 12/1/2032 | 616,155 |
665,000 | Conservatory Metropolitan District, CO, Refunding & Improvement LT GO Bonds, 5.125% (Radian Asset Assurance, Inc. INS), 12/1/2037 | 499,455 |
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 | 1,203,460 |
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 | 618,730 |
TOTAL | 5,992,057 |
Connecticut 0.9% |
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 | 1,185,875 |
Delaware 0.5% |
715,000 | Delaware EDA, Gas Facilities Refunding Bonds, 5.40% (Delmarva Power and Light Co.), 2/1/2031 | 731,238 |
District of Columbia 1.8% |
2,500,000 | District of Columbia Tobacco Settlement Financing Corp., Asset-Backed Revenue Bonds, 6.50% (Original Issue Yield: 6.67%), 5/15/2033 | 2,441,725 |
Florida 5.2% |
540,000 | Broward County, FL Airport System, Airport System Refunding Revenue Bonds (Series 2009O), 5.375% (Original Issue Yield: 5.48%), 10/1/2029 | 568,523 |
1,215,000 | Harbor Bay, FL Community Development District, Special Assessment Revenue Bonds, 6.75%, 5/1/2034 | 839,540 |
400,000 | Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.25%, 5/1/2034 | 349,140 |
1,000,000 | Orlando, FL Utilities Commission, Utility System Revenue Bonds (Series 2009A), 5.25%, 10/1/2039 | 1,074,530 |
1,000,000 | South Lake County, FL Hospital District, Revenue Bonds (Series 2009A), 6.00% (South Lake Hospital, Inc.)/(Original Issue Yield: 6.05%), 4/1/2029 | 1,032,430 |
Principal Amount | Value |
$1,000,000 | South Lake County, FL Hospital District, Revenue Bonds, 6.625% (South Lake Hospital, Inc.), 10/1/2023 | 1,033,360 |
1,000,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2007), 6.65% (Original Issue Yield: 6.70%), 5/1/2040 | 812,080 |
970,000 | Verandah West, FL Community Development District, Capital Improvement Revenue Bonds (Series 2003A), 6.625% (Original Issue Yield: 6.75%), 5/1/2033 | 938,349 |
480,000 | Winter Garden Village at Fowler Groves Community Development District, FL, Special Assessment Bonds (Series 2006), 5.65%, 5/1/2037 | 445,032 |
TOTAL | 7,092,984 |
Georgia 3.1% |
1,500,000 | Atlanta, GA Water & Wastewater, Revenue Bonds (Series 2009A), 6.00% (Original Issue Yield: 6.14%), 11/1/2024 | 1,667,565 |
1,000,000 | Atlanta, GA, Tax Allocation Bonds (Series 2005B), 5.60% (Eastside Tax Allocation District)/(Original Issue Yield: 5.65%), 1/1/2030 | 1,001,700 |
1,500,000 | DeKalb Private Hospital Authority, GA, Revenue Anticipation Certificates (Series 2009), 5.00% (Children's Healthcare of Atlanta, Inc.), 11/15/2024 | 1,566,660 |
TOTAL | 4,235,925 |
Guam 0.3% |
375,000 | Guam Government GO (Section 30), Bonds (Series 2009A), 5.625% (Original Issue Yield: 5.875%), 12/1/2029 | 385,984 |
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 | 817,043 |
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 | 1,495,116 |
TOTAL | 2,312,159 |
Illinois 2.6% |
977,000 | Antioch Village, IL Special Service Area No. 1, Special Tax Revenue Bonds, 6.625% (Deercrest Project), 3/1/2033 | 749,955 |
1,000,000 | Chicago, IL Special Assessment, Improvement Revenue Bonds, 6.75% (Lakeshore East Project)/(Original Issue Yield: 6.769%), 12/1/2032 | 953,410 |
420,000 | DuPage County, IL, Special Tax Bonds (Series 2006), 5.625% (Naperville Campus LLC), 3/1/2036 | 329,520 |
1,000,000 | Illinois Educational Facilities Authority, Refunding Revenue Bonds (Series A), 5.70% (Augustana College)/(Original Issue Yield: 5.90%), 10/1/2032 | 1,010,810 |
Principal Amount | Value |
$625,000 | Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.00% (Landing at Plymouth Place)/(Original Issue Yield: 6.04%), 5/15/2037 | 511,006 |
TOTAL | 3,554,701 |
Indiana 2.4% |
1,500,000 | Indiana Health & Educational Facility Financing Authority, Hospital Revenue Bonds (Series 2007), 5.50% (Community Foundation of Northwest Indiana), 3/1/2037 | 1,483,290 |
1,930,000 | Indiana Health & Educational Facility Financing Authority, Revenue Bonds (Series 2005), 5.25% (Baptist Homes of Indiana), 11/15/2035 | 1,789,612 |
TOTAL | 3,272,902 |
Kentucky 0.2% |
325,000 | Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.97%), 10/1/2028 | 329,644 |
Maryland 0.9% |
550,000 | Baltimore, MD, Special Obligation Revenue Bonds (Series 2008A), 7.00% (East Baltimore Research Park), 9/1/2038 | 555,401 |
690,000 | Maryland State Economic Development Corp., Revenue Bonds (Series B), 5.75% (Ports America Chesapeake, Inc.)/(Original Issue Yield: 5.875%), 6/1/2035 | 707,947 |
TOTAL | 1,263,348 |
Massachusetts 1.3% |
1,730,000 | Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds (Series 2010B), 5.00%, 1/1/2032 | 1,776,347 |
Michigan 1.1% |
1,500,000 | Michigan State Hospital Finance Authority, Refunding Revenue Bonds, 5.75% (Henry Ford Health System, MI)/(Original Issue Yield: 6.00%), 11/15/2039 | 1,507,560 |
Mississippi 1.4% |
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 | 1,869,100 |
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 | 500,575 |
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 | 498,835 |
211,412 | 1 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.50% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.72%), 7/1/2023 | 2 |
TOTAL | 498,837 |
Principal Amount | Value |
New Mexico 0.6% |
$750,000 | 2,3 | Jicarilla, NM Apache Nation, Revenue Bonds, 5.50%, 9/1/2023 | 788,078 |
New York 7.2% |
1,030,000 | Chautauqua County, NY IDA, Exempt Facility Revenue Bonds (Series 2009), 5.875% (NRG Energy, Inc.), 4/1/2042 | 1,051,846 |
800,000 | 2 | New York City, NY IDA,
Liberty Revenue Bonds (Series A),
6.50% (7 World Trade Center LLC), 3/1/2035 | 800,656 |
1,000,000 | New York City, NY Municipal Water Finance Authority, Revenue Bonds, 5.50% (Original Issue Yield: 5.57%), 6/15/2026 | 1,155,720 |
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 | 2,159,800 |
1,430,000 | New York City, NY, UT GO Bonds (Series 2009E), 5.00%, 8/1/2026 | 1,542,255 |
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 | 1,082,940 |
2,000,000 | Triborough Bridge & Tunnel Authority, NY, General Revenue Bonds (Series 2009A-2), 5.25% (Original Issue Yield: 5.44%), 11/15/2034 | 2,158,600 |
TOTAL | 9,951,817 |
North Carolina 1.3% |
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 | 1,068,830 |
800,000 | North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80% (Arc of North Carolina Projects), 10/1/2034 | 790,680 |
TOTAL | 1,859,510 |
Ohio 2.0% |
1,090,000 | Ohio State Air Quality Development Authority, Revenue Bonds (Series 2009A), 5.70% (FirstEnergy Solutions Corp.), 8/1/2020 | 1,172,709 |
430,000 | Ohio State Higher Educational Facility Commission, Hospital Facilities Revenue Bonds (Series 2010), 5.75% (Summa Health System)/(Original Issue Yield: 5.92%), 11/15/2040 | 424,509 |
500,000 | Ohio State University, General Receipts Bonds (Series 2008A), 5.00%, 12/1/2026 | 548,220 |
500,000 | Ohio State University, General Receipts Bonds (Series 2008A), 5.00%, 12/1/2027 | 545,170 |
TOTAL | 2,690,608 |
Oregon 0.3% |
500,000 | 2 | Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 10/1/2026 | 354,955 |
Principal Amount | Value |
Pennsylvania 7.8% |
$1,000,000 | Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2009), 6.50% (United States Steel Corp.), 5/1/2017 | 1,077,270 |
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 | 1,083,786 |
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 | 417,287 |
1,500,000 | Northampton County, PA General Purpose Authority, Hospital Revenue Bonds (Series 2008A), 5.50% (St. Lukes Hospital of Bethlehem)/(Original Issue Yield: 5.60%), 8/15/2035 | 1,501,830 |
2,000,000 | Pennsylvania State Turnpike Commission, Turnpike Subordinate Revenue Bonds (Series 2009D), 5.50%, 12/1/2041 | 2,115,260 |
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 | 1,701,655 |
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 | 2,768,850 |
TOTAL | 10,665,938 |
Puerto Rico 1.6% |
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 | 2,163,920 |
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 | 1,171,170 |
South Dakota 2.0% |
1,000,000 | Educational Enhancement Funding Corp., SD, Tobacco Revenue Bonds (Series 2002B), 6.50%, 6/1/2032 | 1,001,610 |
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 | 1,780,660 |
TOTAL | 2,782,270 |
Tennessee 2.0% |
2,580,000 | Tennessee State School Board Authority, Higher Educational Facilities Second Program Bonds (Series 2008B), 5.50%, 5/1/2038 | 2,813,103 |
Texas 15.5% |
700,000 | Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 7.125% (Wise Regional Health System), 9/1/2034 | 702,632 |
Principal Amount | Value |
$385,000 | HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at Gleannloch Farms, Inc.), 2/15/2027 | 321,922 |
585,000 | HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at Gleannloch Farms, Inc.), 2/15/2037 | 435,076 |
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 | 2,157,580 |
2,000,000 | Houston, TX Airport System, Senior Lien Revenue & Refunding Bonds (Series 2009A), 5.00%, 7/1/2022 | 2,200,140 |
1,500,000 | Lower Colorado River Authority, TX, Refunding Revenue Bonds (Series 2009), 5.25%, 5/15/2029 | 1,606,200 |
1,050,000 | Sabine River Authority, TX, PCR Refunding Bonds (Series 2003B), 6.15% (Texas Competitive Electric Holdings Co. LLC), 8/1/2022 | 619,216 |
10,000,000 | 4 | Spring Branch, TX ISD, LT GO Bonds, 5.250%, 2/1/2034 | 10,693,045 |
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 | 478,310 |
1,985,000 | Texas State Department of Housing & Community Affairs, Residential Mortgage Revenue Bonds (Series 2009A), 5.30%, 7/1/2034 | 2,049,175 |
TOTAL | 21,263,296 |
Virginia 3.0% |
1,000,000 | Broad Street CDA, VA, Revenue Bonds, 7.50% (Original Issue Yield: 7.625%), 6/1/2033 | 884,180 |
500,000 | Fairfax County, VA IDA, Health Care Revenue Bonds (Series 2009C), 5.00% (Inova Health System), 5/15/2025 | 528,850 |
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 | 1,661,212 |
1,000,000 | Virginia Peninsula Port Authority, Coal Terminal Refunding Revenue Bonds (Series 2003), 6.00% (Brinks Co. (The)), 4/1/2033 | 1,028,150 |
TOTAL | 4,102,392 |
Washington 12.0% |
2,000,000 | Tobacco Settlement Authority, WA, Tobacco Settlement Asset-Backed Revenue Bonds, 6.625% (Original Issue Yield: 6.875%), 6/1/2032 | 1,982,840 |
1,000,000 | Washington State Health Care Facilities Authority, Revenue Bonds, 5.00% (Group Health Cooperative)/(Radian Asset Assurance, Inc. INS), 12/1/2036 | 871,680 |
12,790,000 | 4 | Washington State, UT GO Bonds, (Series 2008A), 5.000%, 7/1/2030 | 13,666,243 |
TOTAL | 16,520,763 |
Principal Amount | Value |
Wisconsin 3.0% |
$2,000,000 | Wisconsin State General Fund Appropriation, Revenue Bonds (Series 2009A), 6.00% (Wisconsin State)/(Original Issue Yield: 6.10%), 5/1/2036 | 2,221,540 |
500,000 | Wisconsin State HEFA, Revenue Bonds, 6.50% (Tomah Memorial Hospital, Inc.)/(Original Issue Yield: 6.75%), 7/1/2023 | 483,315 |
500,000 | Wisconsin State HEFA, Revenue Bonds, 6.625% (Tomah Memorial Hospital, Inc.)/(Original Issue Yield: 6.875%), 7/1/2028 | 488,140 |
1,000,000 | Wisconsin State HEFA, Revenue Bonds, 7.25% (Community Memorial Hospital)/(Original Issue Yield: 7.45%), 1/15/2033 | 938,820 |
TOTAL | 4,131,815 |
Wyoming 0.9% |
1,200,000 | Sweetwater County, WY PCRB, PCR Refunding Bonds (Series 2006), 5.25% (Idaho Power Co.), 7/15/2026 | 1,273,800 |
TOTAL MUNICIPAL
BONDS (IDENTIFIED COST $133,162,725) | 136,859,363 |
Short-Term Municipal 0.3%;5 |
Michigan 0.3% |
450,000 | Michigan
State Hospital Finance Authority, (Series 2007)
Weekly VRDNs (Henry Ford Health System, MI)/(JPMorgan Chase Bank, N.A.
LOC), 0.270%, 6/2/2010 (AT AMORTIZED COST) | 450,000 |
TOTAL MUNICIPAL
INVESTMENTS — 100.0% (IDENTIFIED COST $133,612,725)6 | 137,309,363 |
OTHER ASSETS AND LIABILITIES — NET7 | (15,494,046) |
LIQUIDATION VALUE OF AUCTION PREFERRED SHARES | (36,575,000) |
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | $85,240,317 |
At May 31, 2010, the Fund held no securities that are subject to the federal alternative minimum tax (AMT).
1 | 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 have occurred on various dates to redeem portions of the remaining bonds at discounts to par. The market value of the holding is adjusted to reflect the expected value of future distributions. |
2 | 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 May 31, 2010, these restricted securities amounted to $1,943,689, which represented 1.4% of total market value. |
3 | 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 May 31, 2010, these liquid restricted securities amounted to $788,078, which represented 0.6% of total market value. |
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 $116,390,163. |
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 May 31, 2010.
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.
As of May 31, 2010, all investments of the Fund utilized Level 2 inputs in valuing the Fund's assets carried at fair value.
The following acronyms are used throughout this portfolio:
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 |
LOC | — Letter 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
Semi-Annual Shareholder ReportPortfolio of Investments Summary Table (unaudited) - Federated Premier Intermediate Municipal Income Fund
At May 31, 2010, the Fund's sector composition1 was as follows:
Sector Composition | Percentage of Total Investments2 |
GO State | 24.3% |
Public Power | 11.3% |
Special Tax | 10.1% |
Hospital | 7.6% |
Transportation | 6.3% |
Pre-refunded | 6.2% |
Electric & Gas | 5.7% |
Education | 5.4% |
Senior Care | 4.6% |
Water & Sewer | 4.3% |
Other3 | 14.2% |
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 85.8% of the Fund's total investments. Remaining sectors have been aggregated under the designation “Other.” |
Portfolio of Investments - Federated Premier Intermediate Municipal Income Fund
May 31, 2010 (unaudited)
Principal Amount | Value |
Municipal Bonds 99.5% |
Alabama 0.2% |
$350,000 | Courtland, AL IDB, PCR Refunding Bonds (Series 2005A), 5.00% (International Paper Co.), 6/1/2025 | 324,174 |
Arizona 2.5% |
1,500,000 | Arizona Transportation Board, Subordinated Highway Revenue Bonds (Series 2004B), 5.00%, 7/1/2020 | 1,666,935 |
690,000 | Pima County, AZ IDA, PCRBs (Series 2009A), 4.95% (Tucson Electric Power Co.), 10/1/2020 | 705,090 |
1,500,000 | Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.15%, 7/15/2017 | 1,512,150 |
TOTAL | 3,884,175 |
Arkansas 0.8% |
1,000,000 | Independence County, AR, PCR Refunding Bonds (Series 2005), 5.00% (Entergy Arkansas, Inc.), 1/1/2021 | 1,000,390 |
300,000 | Jefferson County, AR, PCR Refunding Bonds (Series 2006), 4.60% (Entergy Arkansas, Inc.), 10/1/2017 | 302,667 |
TOTAL | 1,303,057 |
California 8.2% |
570,000 | California Health Facilities Financing Authority, Health Facility Revenue Bonds (Series 2004I), 4.95% TOBs (Catholic Healthcare West), Mandatory Tender 7/1/2014 | 616,683 |
2,000,000 | California State Department of Water Resources Power Supply Program, Power Supply Revenue Bonds (Series 2010L), 5.00%, 5/1/2021 | 2,236,140 |
1,705,000 | California State, Refunding Economic Recovery Bonds (Series 2009A), 5.00% (California State Fiscal Recovery Fund), 7/1/2018 | 1,934,578 |
1,335,000 | California Statewide CDA, Proposition 1A Receivables Program (Series 2009), 5.00% (California State), 6/15/2013 | 1,451,986 |
2,000,000 | California Statewide CDA, Revenue Bonds (Series 2007), 5.00% (Inland Regional Center), 12/1/2017 | 1,848,580 |
1,475,000 | 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 | 1,642,855 |
1,500,000 | San Diego, CA Public Facilities Authority, Senior Sewer Refunding Revenue Bonds (Series 2009B), 5.00%, 5/15/2016 | 1,706,475 |
1,000,000 | San Francisco, CA City & County Airport Commission, Second Series Refunding Revenue Private Activity Bonds (Series 2010C), 5.00%, 5/1/2021 | 1,106,530 |
TOTAL | 12,543,827 |
Principal Amount | Value |
Colorado 4.3% |
$725,000 | Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00% (United States Treasury PRF 12/1/2013@101), 12/1/2023 | 897,137 |
500,000 | Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023 | 492,715 |
260,000 | Colorado Educational & Cultural Facilities Authority, Refunding Revenue Bonds (Series A), 6.25% (Denver Academy)/(Original Issue Yield: 6.50%), 11/1/2013 | 268,700 |
500,000 | Colorado Educational & Cultural Facilities Authority, Refunding Revenue Bonds (Series A), 7.00% (Denver Academy)/(Original Issue Yield: 7.25%), 11/1/2023 | 520,880 |
1,265,000 | Colorado Health Facilities Authority, Revenue Bonds (Series 2005), 5.00% (Covenant Retirement Communities, Inc.), 12/1/2013 | 1,316,523 |
865,000 | Conservatory Metropolitan District, CO, LT GO Bonds, 7.40% (United States Treasury PRF 12/1/2013@102), 12/1/2016 | 1,032,187 |
600,000 | Denver (City & County), CO, Airport System Revenue Bonds (Series 2009A), 5.00% (Denver, CO City & County Department of Aviation), 11/15/2016 | 670,698 |
675,000 | Denver (City & County), CO, Airport System Revenue Bonds (Series 2010A), 5.00% (Denver, CO City & County Department of Aviation), 11/15/2022 | 735,500 |
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 | 618,730 |
TOTAL | 6,553,070 |
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 | 1,063,890 |
Florida 4.3% |
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 | 714,540 |
1,000,000 | Citizens Property Insurance Corp. FL, Senior Secured Bonds (Series 2009A-1), 5.00% (Assured Guaranty Corp. INS), 6/1/2014 | 1,070,160 |
145,000 | Fishhawk Community Development District II, Special Assessment Revenue Bonds (Series 2004B), 7.04% (Original Issue Yield: 7.087%), 11/1/2014 | 142,463 |
360,000 | Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.00%, 5/1/2020 | 323,809 |
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 | 522,725 |
1,500,000 | Tolomato Community Development District, FL, Special Assessment Revenue Bonds (Series 2007), 6.375%, 5/1/2017 | 1,381,140 |
Principal Amount | Value |
$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 | 2,433,737 |
TOTAL | 6,588,574 |
Georgia 3.7% |
1,500,000 | Atlanta, GA Water & Wastewater, Revenue Bonds (Series 2009A), 6.00%, 11/1/2019 | 1,745,115 |
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 | 1,442,854 |
500,000 | DeKalb Private Hospital Authority, GA, Revenue Anticipation Certificates (Series 2009), 5.00% (Children's Healthcare of Atlanta, Inc.), 11/15/2016 | 549,720 |
750,000 | Fulton County, GA Residential Care Facilities, Revenue Bonds (Series 2004A), 6.00% (Canterbury Court), 2/15/2022 | 718,897 |
1,115,000 | Municipal Electric Authority of Georgia, Revenue Bonds (Series 2002A), 5.25% (National Public Finance Guarantee Corporation INS), 11/1/2015 | 1,207,969 |
TOTAL | 5,664,555 |
Guam 0.9% |
1,250,000 | Guam Government LO (Section 30), Bonds (Series 2009A), 5.00%, 12/1/2015 | 1,321,238 |
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 | 1,647,557 |
Illinois 3.8% |
1,825,000 | Chicago, IL Sales Tax, Refunding Revenue Bonds, 5.00% (Assured Guaranty Municipal Corp. INS), 1/1/2019 | 1,987,114 |
1,000,000 | Chicago, IL Special Assessment, Improvement Bonds (Series 2002), 6.625% (Lakeshore East Project)/(Original Issue Yield: 6.637%), 12/1/2022 | 982,110 |
1,000,000 | Illinois Educational Facilities Authority, Refunding Revenue Bonds (Series A), 5.00% (Augustana College)/(Original Issue Yield: 5.05%), 10/1/2014 | 1,038,880 |
875,000 | Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.00% (Landing at Plymouth Place), 5/15/2025 | 773,894 |
1,000,000 | Illinois Finance Authority, Refunding Revenue Bonds (Series 2005A), 5.00% (Depaul University), 10/1/2014 | 1,091,450 |
TOTAL | 5,873,448 |
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 | 1,110,459 |
Principal Amount | Value |
$955,000 | Indiana State Finance Authority, Environmental Facilities Refunding Revenue Bonds (Series 2009B), 4.90% (Indianapolis, IN Power & Light Co.), 1/1/2016 | 1,032,918 |
TOTAL | 2,143,377 |
Kansas 0.8% |
1,055,000 | Butler County, KS Union School District No. 394, UT GO Bonds, 5.00% (Assured Guaranty Municipal Corp. INS), 9/1/2020 | 1,159,783 |
Kentucky 0.9% |
1,335,000 | Kentucky EDFA, Revenue Bonds (Series 2000A), 6.25% (Norton Healthcare, Inc.)/(Original Issue Yield: 6.45%), 10/1/2012 | 1,366,399 |
Louisiana 1.5% |
981,000 | Lakeshore Villages Master Community Development District, LA, Special Assessment Bonds (Series 2007), 5.25% (Original Issue Yield: 5.378%), 7/1/2017 | 593,152 |
1,000,000 | Louisiana Local Government Environmental Facilities CDA, Revenue Bonds, 5.375% (BRCC Facilities Corp.)/(National Public Finance Guarantee Corporation INS), 12/1/2014 | 1,070,280 |
635,000 | West Feliciana Parish, LA, PCRBs, 7.00% (Entergy Gulf States Louisiana LLC), 11/1/2015 | 636,784 |
TOTAL | 2,300,216 |
Maryland 10.7% |
1,000,000 | Maryland State Economic Development Corp., Revenue Bonds (Series A), 5.125% (Ports America Chesapeake, Inc. )/(Original Issue Yield: 5.25%), 6/1/2020 | 1,012,890 |
13,500,000 | 2 | Maryland State, UT GO Bonds (Second Series 2008), 5.000%, 7/15/2022 | 15,423,210 |
TOTAL | 16,436,100 |
Massachusetts 2.1% |
2,000,000 | Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds (Series 2010B), 5.00%, 1/1/2024 | 2,131,680 |
1,030,000 | Massachusetts HEFA, Revenue Bonds (Series 2010A), 5.00% (Northeastern University), 10/1/2023 | 1,109,248 |
TOTAL | 3,240,928 |
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 | 2,187,140 |
1,500,000 | Michigan State Building Authority, Refunding Revenue Bonds (Series 2009I), 5.00% (Michigan State), 10/15/2016 | 1,643,415 |
TOTAL | 3,830,555 |
Principal Amount | Value |
Nevada 2.5% |
$2,000,000 | Clark County, NV, IDRBs (Series 2003C), 5.45% TOBs (Southwest Gas Corp.), Mandatory Tender 3/1/2013 | 2,096,740 |
975,000 | Las Vegas, NV, Local Improvement Special Assessment Bonds (Series 2004), 5.50% (Providence SID No. 607), 6/1/2013 | 964,382 |
805,000 | 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 | 737,726 |
TOTAL | 3,798,848 |
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 | 501,910 |
251,750 | 3 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.00% (Pascack Valley Hospital Association)/(Original Issue Yield: 6.25%), 7/1/2013 | 3 |
TOTAL | 501,913 |
New Mexico 1.3% |
1,000,000 | Farmington, NM, PCR Refunding Revenue Bonds (Series A), 5.20% TOBs (Public Service Co., NM), Mandatory Tender 6/1/2020 | 999,220 |
1,000,000 | Farmington, NM, Refunding Revenue Bonds (Series 2002A), 4.00% TOBs (El Paso Electric Co.)/(FGIC INS), Mandatory Tender 8/1/2012 | 1,001,320 |
TOTAL | 2,000,540 |
New York 7.6% |
2,000,000 | Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.15%), 7/1/2020 | 2,068,280 |
800,000 | 1 | New York City, NY IDA,
Liberty Revenue Bonds (Series A),
6.25% (7 World Trade Center LLC), 3/1/2015 | 806,552 |
2,000,000 | New York City, NY, UT GO Bonds (Fiscal 2002 Series D), 5.00% (Original Issue Yield: 5.21%), 6/1/2017 | 2,125,600 |
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 | 2,286,140 |
2,000,000 | Tobacco Settlement Financing Corp., NY, (Series 2003B-1C), 5.50% (New York State), 6/1/2019 | 2,183,400 |
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 | 2,137,980 |
TOTAL | 11,607,952 |
North Carolina 5.0% |
1,000,000 | North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series D), 5.50%, 1/1/2014 | 1,122,550 |
2,000,000 | North Carolina Eastern Municipal Power Agency, Refunding Revenue Bonds, 6.00% (AMBAC INS), 1/1/2018 | 2,309,120 |
Principal Amount | Value |
$965,000 | North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.50% (Arc of North Carolina Projects), 10/1/2024 | 962,086 |
3,000,000 | North Carolina Municipal Power Agency No. 1, Electric Revenue Bonds (Series 2003A), 5.50%, 1/1/2014 | 3,304,680 |
TOTAL | 7,698,436 |
Ohio 3.9% |
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 | 1,613,160 |
1,000,000 | Cuyahoga, OH Community College District, General Receipts Revenue Bonds (Series 2002A), 5.00% (AMBAC INS), 12/1/2022 | 1,039,650 |
2,135,000 | Franklin County, OH Hospital Facility Authority, Hospital Improvement Revenue Bonds (Series 2009), 5.00% (Nationwide Children's Hospital), 11/1/2019 | 2,289,083 |
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 | 966,449 |
TOTAL | 5,908,342 |
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 | 354,955 |
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 | 1,179,750 |
TOTAL | 1,534,705 |
Pennsylvania 11.9% |
435,000 | Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2005), 5.50% (United States Steel Corp.), 11/1/2016 | 440,612 |
1,000,000 | Allegheny County, PA IDA, Environmental Improvement Refunding Revenue Bonds (Series 2009), 6.50% (United States Steel Corp.), 5/1/2017 | 1,077,270 |
12,000,000 | 2 | Commonwealth of Pennsylvania, UT GO Bonds, 5.00%, 3/15/2025 | 13,371,480 |
1,000,000 | Lancaster, PA Higher Education Authority, College Revenue Bonds, 5.00% (Franklin & Marshall College), 4/15/2019 | 1,086,310 |
1,420,000 | Northampton County, PA General Purpose Authority, Hospital Revenue Bonds (Series 2008A), 5.25% (St. Lukes Hospital of Bethlehem)/(Original Issue Yield: 5.37%), 8/15/2024 | 1,447,392 |
675,000 | Philadelphia, PA Water & Wastewater System, Refunding Revenue Bonds (Series 2010A), 5.00% (Assured Guaranty Municipal Corp. INS), 6/15/2019 | 759,334 |
TOTAL | 18,182,398 |
Principal Amount | Value |
South Carolina 0.7% |
$1,000,000 | Georgetown County, SC Environmental Improvements, Refunding Revenue Bonds (Series 2000A), 5.95% (International Paper Co.), 3/15/2014 | 1,094,170 |
South Dakota 1.1% |
1,715,000 | Educational Enhancement Funding Corp., SD, Tobacco Revenue Bonds (Series 2002B), 6.50%, 6/1/2032 | 1,717,761 |
Tennessee 0.8% |
1,000,000 | Memphis, TN Electric System, Subordinate Refunding Revenue Bonds (Series 2010), 5.00%, 12/1/2018 | 1,165,530 |
Texas 7.1% |
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 | 721,920 |
1,000,000 | Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 6.50% (Wise Regional Health System), 9/1/2014 | 1,048,990 |
1,000,000 | Harris County, TX, Toll Road Senior Lien Revenue Bonds (Series 2009D), 5.00%, 8/15/2018 | 1,147,190 |
1,000,000 | Houston, TX Airport System, Senior Lien Revenue & Refunding Bonds (Series 2009A), 5.00%, 7/1/2018 | 1,140,020 |
2,000,000 | Lower Colorado River Authority, TX, Transmission Contract Refunding & Improvement Revenue Bonds (Series 2010), 5.00% (LCRA Transmission Services Corp.), 5/15/2022 | 2,195,580 |
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 | 173,770 |
545,000 | Tarrant County, TX Cultural Education Facilities Finance Corp., Retirement Facility Revenue Bonds (Series 2007), 5.00% (Air Force Village), 5/15/2016 | 551,148 |
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 | 506,120 |
1,000,000 | Tyler, TX HFDC, Hospital Revenue Bonds, 5.25% (Mother Frances Hospital ), 7/1/2012 | 1,043,810 |
2,235,000 | West Harris County, TX Regional Water Authority, Water System Revenue Bonds (Series 2006), 5.00% (AMBAC INS), 12/15/2021 | 2,381,258 |
TOTAL | 10,909,806 |
Virginia 1.5% |
167,000 | Bell Creek CDA, VA, Special Assessment Revenue Bonds (Series 2003), 6.75%, 3/1/2022 | 154,238 |
1,000,000 | Broad Street CDA, VA, Revenue Bonds, 7.10% (Original Issue Yield: 7.15%), 6/1/2016 | 1,006,830 |
Principal Amount | Value |
$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 | 1,201,310 |
TOTAL | 2,362,378 |
Washington 2.5% |
2,000,000 | Energy Northwest, WA, Project 3 Electric Refunding Revenue Bond (Series 2010-A), 5.00%, 7/1/2018 | 2,333,900 |
1,435,000 | Tobacco Settlement Authority, WA, Tobacco Settlement Asset-Backed Revenue Bonds, 6.50% (Original Issue Yield: 6.65%), 6/1/2026 | 1,448,589 |
TOTAL | 3,782,489 |
Wisconsin 1.9% |
2,000,000 | Wisconsin State HEFA, Revenue Bonds, 5.75% (SynergyHealth, Inc.), 11/15/2015 | 2,151,340 |
790,000 | Wisconsin State HEFA, Revenue Bonds, 7.125% (Community Memorial Hospital)/(Original Issue Yield: 7.25%), 1/15/2022 | 790,277 |
TOTAL | 2,941,617 |
TOTAL MUNICIPAL
BONDS (IDENTIFIED COST $147,859,035) | 152,451,808 |
SHORT-TERM MUNICIPALS 0.5%;4 |
Michigan 0.2% |
200,000 | Michigan State Hospital Finance Authority, (Series 2007) Weekly VRDNs (Henry Ford Health System, MI)/(JPMorgan Chase Bank, N.A. LOC), 0.270%, 6/2/2010 | 200,000 |
New York 0.2% |
300,000 | New York City, NY Transitional Finance Authority, New York City Recovery Bonds (2003 Sub Series 3-E) Daily VRDNs (GTD by Landesbank Baden-Wurttemberg LIQ), 0.280%, 6/1/2010 | 300,000 |
Pennsylvania 0.1% |
200,000 | Philadelphia, PA Hospitals & Higher Education Facilities Authority, (Series B of 2008) Daily VRDNs (Children's Hospital of Philadelphia)/(Wells Fargo Bank, N.A. LIQ), 0.280%, 6/1/2010 | 200,000 |
TOTAL SHORT-TERM
MUNICIPALS (AT AMORTIZED COST) | 700,000 |
TOTAL MUNICIPAL
INVESTMENTS — 100.0% (IDENTIFIED COST $148,559,035)5 | 153,151,808 |
OTHER ASSETS AND LIABILITIES — NET6 | (15,982,845) |
LIQUIDATION VALUE OF AUCTION PREFERRED SHARES | (41,900,000) |
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | $95,268,963 |
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 May 31, 2010, these restricted securities amounted to $1,876,047, 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 have occurred on various dates to redeem portions of the remaining bonds at discounts to par. The market value of the holding 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 $129,313,147. |
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 market value at May 31, 2010.
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.
As of May 31, 2010, all investments of the Fund utilized Level 2 inputs in valuing the Fund's assets carried at fair value.
Semi-Annual Shareholder ReportAMBAC | — 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 |
GO | — General Obligation |
GTD | — Guaranteed |
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 | — Letter 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
Semi-Annual Shareholder ReportStatements of Assets and Liabilities
May 31, 2010 (unaudited)
Federated Premier Municipal Income Fund | Federated Premier Intermediate Municipal Income Fund |
Assets: |
Total investments in securities, at value | $137,309,363 | $153,151,808 |
Cash | 71,123 | 24,472 |
Income receivable | 2,091,458 | 2,285,158 |
Receivable for investments sold | — | 2,352,458 |
TOTAL ASSETS | 139,471,944 | 157,813,896 |
Liabilities: |
Payable for floating rate certificate securities (Note 2) | 17,100,000 | 19,125,000 |
Payable for investments purchased | — | 1,000,000 |
Income distribution payable — Common Shares | 535,557 | 487,348 |
Income distribution payable — Preferred Shares | 6,374 | 1,468 |
Payable for Directors'/Trustees' fees | 1,248 | 1,245 |
Accrued expenses | 13,448 | 29,872 |
TOTAL LIABILITIES | 17,656,627 | 20,644,933 |
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 | $87,231,145 | $98,675,625 |
Net unrealized appreciation of investments | 3,696,638 | 4,592,773 |
Accumulated net realized loss on investments | (6,306,632) | (8,316,099) |
Undistributed net investment income | 619,166 | 316,664 |
TOTAL NET ASSETS APPLICABLE TO COMMON SHARES | $85,240,317 | $95,268,963 |
Common Shares Outstanding, ($0.01 par
value, unlimited shares authorized) | 6,155,306 | 6,961,724 |
Net asset value per share | $13.85 | $13.68 |
Investments, at identified cost | $133,612,725 | $148,559,035 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder ReportStatements of Operations
Six Months Ended May 31, 2010 (unaudited)
Federated Premier Municipal Income Fund | Federated Premier Intermediate Municipal Income Fund |
Investment Income: |
Interest | $3,726,478 | $3,554,801 |
Expenses: |
Investment adviser fee (Note 5) | 329,222 | 373,468 |
Administrative personnel and services fee (Note 5) | 74,795 | 74,795 |
Custodian fees | 1,725 | 1,902 |
Transfer and dividend disbursing agent fees and expenses | 17,227 | 17,196 |
Directors'/Trustees' fees | 4,068 | 4,104 |
Auditing fees | 20,460 | 20,460 |
Legal fees | 6,777 | 5,489 |
Portfolio accounting fees | 37,950 | 38,200 |
Printing and postage | 11,520 | 10,758 |
Insurance premiums | 2,202 | 2,205 |
Auction agent fees | 3,241 | 3,241 |
Trailer commission fees (Note 2) | 45,791 | 52,957 |
Interest and trust expenses (Note 2) | 74,892 | 72,018 |
Miscellaneous | 34,295 | 34,195 |
TOTAL EXPENSES | 664,165 | 710,988 |
Waivers and Reimbursement (Note 5): |
Waiver of investment adviser fee | (34,983) | (39,715) |
Waiver of administrative personnel and services fee | (74,795) | (74,795) |
Reimbursement of other operating expenses | (77,905) | (50,824) |
TOTAL WAIVERS AND REIMBURSEMENT | (187,683) | (165,334) |
Net expenses | 476,482 | 545,654 |
Net investment income | 3,249,996 | 3,009,147 |
Realized and Unrealized Gain on Investments: |
Net realized gain on investments | 327,181 | 116,194 |
Net change in unrealized appreciation of investments | 3,431,157 | 1,585,783 |
Net realized and unrealized gain on investments | 3,758,338 | 1,701,977 |
Income distributions declared to Preferred Shareholders | (35,007) | (40,672) |
Change in net assets resulting from operations applicable to common shares | $6,973,327 | $4,670,452 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder ReportStatements of Changes in Net Assets
Federated
Premier Municipal Income Fund | Federated Premier Intermediate Municipal Income Fund | |||
Six
Months Ended (unaudited) 5/31/2010 | Year
Ended 11/30/2009 | Six
Months Ended (unaudited) 5/31/2010 | Year
Ended 11/30/2009 | |
Increase (Decrease) in Net Assets | ||||
Operations: | ||||
Net investment income | $3,249,996 | $6,557,167 | $3,009,147 | $6,363,257 |
Net realized gain (loss) on investments | 327,181 | (2,789,157) | 116,194 | (4,052,217) |
Net change in unrealized appreciation/depreciation of investments | 3,431,157 | 15,896,294 | 1,585,783 | 14,846,199 |
Distributions from net investment income — Preferred Shares | (35,007) | (143,262) | (40,672) | (161,038) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS APPLICABLE TO COMMON SHARES | 6,973,327 | 19,521,042 | 4,670,452 | 16,996,201 |
Distributions to Common Shareholders: | ||||
Distributions from net investment income — Common Shares | (3,267,067) | (6,209,927) | (3,110,644) | (6,139,077) |
Share Transactions Applicable to Common Shares: | ||||
Net asset value of shares issued to shareholders in payment of distributions declared | 91,300 | 141,293 | 111,273 | 85,482 |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 91,300 | 141,293 | 111,273 | 85,482 |
Change in net assets | 3,797,560 | 13,452,408 | 1,671,081 | 10,942,606 |
Net Assets Applicable to Common Shares: | ||||
Beginning of period | 81,442,757 | 67,990,349 | 93,597,882 | 82,655,276 |
End of period | $85,240,317 | $81,442,757 | $95,268,963 | $93,597,882 |
Undistributed net investment income included in net assets at end of period | $619,166 | $671,244 | $316,664 | $458,833 |
See Notes which are an integral part of the Financial Statements
Semi-Annual Shareholder ReportNotes to Financial Statements
May 31, 2010 (unaudited)
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.
Semi-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, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. 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 May 31, 2010, was 0.309% and 0.287%, 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 six months ended May 31, 2010 were $45,791 and $52,957, 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 (the “Code”) and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended May 31, 2010, the Funds did not have a liability for any uncertain tax positions. The Semi-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 May 31, 2010, for Federated Premier Municipal Income Fund, investments with a value of $24,359,288 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 the Federated Premier Intermediate Municipal Income Fund, investments with a value of $28,794,690 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 $74,892 and $72,018, respectively, for these investments for the six months ended May 31, 2010.
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 Semi-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 May 31, 2010, is as follows:
Federated Premier Municipal Income Fund:
Security | Acquisition Date | Acquisition Cost | Market Value |
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 | $354,955 |
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 | $800,656 |
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 | $714,540 |
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 | $354,955 |
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 | $806,552 |
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.
The following tables summarize share activity:
Federated Premier Municipal Income Fund | Six
Months Ended 5/31/2010 | Year
Ended 11/30/2009 |
Shares issued to shareholders in payment of distributions declared | 6,517 | 10,995 |
TOTAL CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 6,517 | 10,995 |
Federated Premier Intermediate Municipal Income Fund | Six
Months Ended 5/31/2010 | Year
Ended 11/30/2009 |
Shares issued to shareholders in payment of distributions declared | 8,248 | 6,495 |
TOTAL CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 8,248 | 6,495 |
At May 31, 2010, the following amounts apply for federal income tax purposes:
Cost
of Investments | Unrealized Appreciation | Unrealized Depreciation | Net
Unrealized Appreciation/ (Depreciation) |
Federated Premier Municipal Income Fund | $116,390,163 | $7,002,813 | $3,183,614 | $3,819,199 |
Federated Premier Intermediate Municipal Income Fund | $129,313,147 | $6,835,356 | $2,121,695 | $4,713,661 |
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.
In order to reduce the Funds' expenses, the Adviser has contractually agreed to waive a portion of its investment adviser fee at the annual rate of 0.20% of the average daily net value of each Fund's managed assets, inclusive of any assets attributable to any preferred shares that may be issued, from the commencement of operations through December 31, 2007, and at a declining rate thereafter through December 31, 2010. Effective January 1, 2009 and Semi-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 six months ended May 31, 2010, FAS waived its entire fee of $74,795 on each Fund.
Interfund Transactions
During the six months ended May 31, 2010, 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 | $11,950,000 | $14,200,000 |
Federated Premier Intermediate Municipal Income Fund | $18,040,000 | $21,090,000 |
General
Certain Officers and Trustees of the Funds are Officers and Directors or Trustees of the above companies.
6. PREFERRED SHARES
On 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 May 31, 2010, Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund currently have outstanding 1,463 and 1,676 AMPS, respectively.
Semi-Annual Shareholder ReportWhenever 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 May 31, 2010, 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 six months ended May 31, 2010, were as follows:
Purchases | Sales |
Federated Premier Municipal Income Fund | $17,136,749 | $16,472,991 |
Federated Premier Intermediate Municipal Income Fund | $26,433,599 | $25,010,129 |
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, 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 May 31, 2010, there were no outstanding loans. During the six months ended May 31, 2010, the program was not utilized.
Since October 2003, Federated Investors, Inc. and related entities (collectively, “Federated”), and various Federated sponsored mutual 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 certain Federated 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. Federated without admitting the validity of any claim has reached a preliminary settlement with the Plaintiffs in these cases. Any settlement would have to be approved by the Court. 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. These lawsuits have been consolidated into a single action alleging Semi-Annual Shareholder ReportManagement has evaluated subsequent events through the date the financial statements were issued, and determined that no events have occurred that require additional disclosure.
Semi-Annual Shareholder Report
Evaluation and
Approval of Advisory
Contract - May
2010
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 2010. 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 the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the 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.
Semi-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 relevant in judging the reasonableness of proposed fees.
For the periods covered by the report, FMN's performance for the one-year and five-year periods was above the median of the relevant peer group, and FMN's performance fell below the median of the relevant peer group for the three-year period. 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.
For the periods covered by the report, FPT's performance for the one-year and five-year periods was above the median of the relevant peer group, and FPT's performance fell below the median of the relevant peer group for the three-year period. 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 Semi-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,” which has made an offering of a fixed number of common shares and (other than the issuance of preferred shares contemplated at the time of the Fund's initial public offering) has not made and does not expect to make additional offerings to raise more assets (although it may make additional offerings to replace existing preferred shares), 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. Accordingly, 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 below 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.
Semi-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.
Semi-Annual Shareholder ReportVoting Proxies on Fund Portfolio Securities
A 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 website at FederatedInvestors.com. To access this information go to the “Products” section of the website, 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 website 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 website 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 website 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 website at FederatedInvestors.com. To access this information from the “Products” section of the website, click on the “Notice to Shareholders - Source of Distribution” link under “Related Information.”
Semi-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.
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 its Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-730-6001 or email CEinfo@federatedinvestors.com.
Semi-Annual Shareholder Report
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
31423P108
Cusip 31423P207
Cusip
31423M105
Cusip
31423M204
28583 (7/10)
Federated is a registered
mark of Federated Investors, Inc.
2010 © Federated
Investors,
Inc.
Item 7.
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Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
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Not Applicable
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Item 8.
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Portfolio Managers of Closed-End Management Investment Companies
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No change in any of the Portfolio Managers identified in Item 8(a)(1) in the Registrant’s most recent annual report.
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Item 9.
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Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
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No such purchases this period.
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(a)(2)
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Certifications of Principal Executive Officer and Principal Financial Officer.
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(b)
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Certifications pursuant to 18 U.S.C. Section 1350.
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Registrant
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Federated Premier Municipal Income Fund
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By
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/S/ Richard A. Novak
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Date
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July 21, 2010
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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.
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By
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/S/ J. Christopher Donahue
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J. Christopher Donahue, Principal Executive Officer
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Date
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July 21, 2010
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By
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/S/ Richard A. Novak
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Richard A. Novak, Principal Financial Officer
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Date
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July 21, 2010
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