Federated Hermes Premier Munic – GuruFocus.com

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PITTSBURGH, June 9, 2022 /PRNewswire/ — Federated Hermes Premier Municipal Income Fund (NYSE: FMN) has declared a dividend. The fund aims to provide investors with current dividend income that is exempt from ordinary federal income tax. In addition, this fund includes income that is exempt from the federal alternative minimum tax (AMT).

Registration Date :

June 23, 2022

Ex-dividend date:

June 22, 2022

Payment date :

July 1, 2022

Tax-free dividend per share

Rising

Change
The preceding month

$0.041

$(0.013)

Reasons for this change include, but are not limited to, maturities of higher income holdings, reinvestment at lower yields, an upward shift in the credit quality of the portfolio, the expected increase in costs indebtedness linked to the rapid tightening of the Federal Reserve and the reduction of the fund’s outstanding leverage.

The fund reduced its preferred shares by $25 million, reducing the fund’s effective leverage from around 42.8% to around 36.8%. This reduction in leverage is intended to reduce the volatility of the fund’s net asset value when market interest rates fluctuate. This reduction in leverage also contributes to the decline in the fund’s dividend to ordinary shareholders. The remaining preferred shares outstanding continue to pay dividends at a floating rate. The fund has secured the spread on a prevailing short-term tax exemption rate which it will use to calculate dividends for the next period.

Investors can view additional portfolio information in the Products section of FederatedInvestors.com.

Federated Hermes, Inc. (NYSE: FHI) is a global leader in active and responsible investment management, with $631.1 billion in assets under management. We provide investment solutions that help investors target a wide range of outcomes and offer equity, fixed income, alternative/private markets, multi-asset and cash management strategies to over 11,000 institutions and intermediaries around the world. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks, and broker/dealers. Based at PittsburghFederated Hermes has nearly 2,000 employees in London, New York, Boston and offices around the world. For more information, visit FederatedHermes.com.

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View original content: https://www.prnewswire.com/news-releases/federated-hermes-premier-municipal-income-fund-declares-dividend-and-announces-change-in-leverage-301565060.html

SOURCE Federated Hermes, Inc.

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