DEF 14A: Federated Hermes Premier Municipal Income Fund to Hold Annual Shareholder Meeting on November 8, 2024

Federated Hermes Premier Municipal Income Fund is set to hold its annual shareholder meeting on November 8, 2024, to elect trustees and address other business matters.

Summary

• Federated Hermes Premier Municipal Income Fund will hold its annual meeting of shareholders on November 8, 2024.
• Shareholders are being asked to vote on the election of John B. Fisher and G. Thomas Hough as Class III Trustees, to be elected by both Common and Preferred Shareholders.
• Preferred Shareholders will also vote separately to elect John G. Carson and John S. Walsh as Trustees.
• The Board of Trustees recommends voting FOR the election of all nominees.
• The record date for determining shareholders eligible to vote is July 31, 2024.
• The proxy statement and enclosed proxy cards were expected to be first mailed on or about September 18, 2024.
• As of the record date, the Fund had 11,498,091 Common Shares and 1,772 Variable Rate Municipal Term Preferred Shares outstanding.
• The Fund's Annual Report for the fiscal year ended November 30, 2023, was mailed to shareholders on or about January 26, 2024.
• The Fund's Semi-Annual Report for the six months ended May 31, 2024, was mailed to shareholders on or about July 29, 2024.
• The Fund has announced that it will conduct a tender offer for up to 32% of its outstanding Common Shares at a price equal to 99% of the Funds net asset value per share as determined on the day the tender offer expires or the preceding business day.
• The Fund currently anticipates that the tender offer will end on October 11, 2024.

Sentiment

Score: 7

Explanation: The document is primarily procedural and informational, with a positive recommendation from the Board. The sentiment is neutral to slightly positive.

Positives

• The Board of Trustees unanimously recommends voting FOR the election of all nominees, indicating confidence in their abilities.
• The Fund is providing multiple avenues for shareholders to vote, including by mail and in person, to encourage participation.
• The Fund is making efforts to reduce costs and avoid duplicate mailings through householding of documents.

Negatives

• The document mentions that in the unlikely event that a quorum is not reached in a timely manner, the Fund may employ Computershare as a proxy solicitor, the cost of which is estimated to be approximately $500, indicating a potential expense if shareholder participation is low.
• The Fund has announced that it will conduct a tender offer for up to 32% of its outstanding Common Shares at a price equal to 99% of the Funds net asset value per share as determined on the day the tender offer expires or the preceding business day, which may be seen as a negative by some shareholders.

Risks

• Low shareholder turnout could necessitate additional proxy solicitation efforts, incurring extra costs.
• The staggered terms of trustees could limit the ability of other entities or persons to acquire control of the board, which may be viewed negatively by some shareholders.
• The Control Beneficial Interest Statute limits the ability of holders of control beneficial interests to vote their shares of a listed closed-end fund above various threshold levels that start at 10% unless the other shareholders of such fund vote to reinstate those rights.

Future Outlook

The document outlines the process for shareholder proposals and nominations for the 2025 annual meeting, indicating ongoing governance activities.

Management Comments

• The Board of Trustees of the Fund unanimously recommends that Shareholders vote FOR the election of the above-named nominees.
• The Adviser recommended the tender offer in connection with entering into an agreement with Saba Capital Management, L.P. (Saba), pursuant to which Saba agreed to comply with certain standstill covenants and vote its Common Shares in accordance with recommendations of the Board during the effective period of the agreement.

Industry Context

This announcement is typical for publicly traded investment funds, ensuring compliance with NYSE rules and providing shareholders with the opportunity to participate in the governance of the fund.

Comparison to Industry Standards

• The structure of the Board of Trustees, with both interested and independent trustees, is a common practice in the investment management industry, aligning with regulatory requirements and best practices.
• The staggered terms for trustees are a common governance mechanism used by closed-end funds to promote stability and continuity.
• The details provided regarding the Audit Committee's responsibilities and pre-approval processes for audit and non-audit services are consistent with industry standards and regulatory requirements, similar to practices at companies like BlackRock or Vanguard.

Stakeholder Impact

• Shareholders have the opportunity to influence the governance of the fund through their votes.
• The outcome of the trustee elections will impact the leadership and oversight of the fund.
• The tender offer may impact shareholders who choose to participate.

Next Steps

• Shareholders are requested to vote by completing, dating, and signing the enclosed proxy card and returning it in the enclosed envelope.
• The Fund will hold its annual meeting on November 8, 2024, to conduct the proposed elections and address other business matters.

Key Dates

Keywords

Trustees, Shareholders, Proxy, Federated Hermes, Annual Meeting, Fund