In plain terms — Federated Hermes Premier Municipal Income Fund
Shares currently cost about 9.1% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 10.2% discount, so today's level is not wide for this fund (Z-score -0.3). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 5.3% a year of the share price (4.8% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.10 of assets — a ReinvestCapture™ rate of 5.8%, more than the payout rate itself. That is buying power, not a return.
The assets themselves fell 5.5% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | -9.54% | 0.99% | -0.86 | 62 |
| 6 months | -9.58% | 0.82% | -1.01 | 124 |
| 1 year | -10.16% | 0.92% | -0.26 | 245 |
| 3 years | -10.57% | — | — | — |
| 5 years | -10.94% | — | — | — |
Current contemporaneous premium/discount -10.40% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -12.41% to -7.72%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -5.05% | -12.54% | -10.26% | -9.77% | +1.09% | -8.08% |
| Market price total return | -4.63% | -11.44% | -6.91% | -5.26% | +5.68% | -3.86% |
| NAV return | -3.85% | -10.07% | -9.49% | -9.57% | -0.53% | -6.24% |
| NAV total return | -3.47% | -9.05% | -6.45% | -5.51% | +3.51% | -2.41% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
Federated Premier Municipal Income Fund is a closed-ended fixed income mutual fund launched by Federated Investors, Inc. The fund is managed by Federated Investment Management Company. It invests in fixed income markets of United States. The fund primarily invests in tax-exempt municipal bonds of GO state, GO local, special tax, hospital, transportation, pre-refunded, senior care, water and sewer, education, electric and gas, and public power sectors. It benchmarks the performance of its portfolio against S&P Municipal Bond Index. Federated Premier Municipal Income Fund was formed on December 20, 2002 and is domiciled in United States.
CEF Explorer research page for Federated Hermes Premier Municipal Income Fund. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.