Federated Hermes Premier Municipal Income Fund : Annual Report

Annual

Shareholder Report

November 30, 2022

Federated Hermes Premier Municipal Income Fund

Fund Established 2002

Dear Valued Shareholder,

We are pleased to present the Annual Shareholder Report for your fund covering the period from December 1, 2021 through November 30, 2022. This report includes Management's Discussion of Fund Performance, a complete listing of your fund's holdings, performance information and financial statements along with other important fund information.

As a global leader in active, responsible investment management, Federated Hermes is guided by our conviction that responsible investing is the best way to create wealth over the long term. The company provides capabilities across a wide range of asset classes to investors around the world.

In addition, FederatedInvestors.comoffers quick and easy access to valuable resources that include timely fund updates, economic and market insights from our investment strategists and financial planning tools. You can also access many of those insights by following us on Twitter (@FederatedHermes) and LinkedIn.

Thank you for investing with us. We hope you find this information useful and look forward to keeping you informed.

Sincerely,

J. Christopher Donahue, President

Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee

CONTENTS
Management's Discussion of Fund Performance	1
The Fund's Investment Objectives, Principal Strategies and Principal Risks	10
Portfolio of Investments Summary Table	16
Portfolio of Investments	17
Financial Highlights	32
Statement of Assets and Liabilities	34
Statement of Operations	35
Statement of Changes in Net Assets	36
Statement of Cash Flows	37
Notes to Financial Statements	38
Report of Independent Registered Public Accounting Firm	48
Last Meeting of Shareholders	50
Board of Trustees and Fund Officers	52
Evaluation and Approval of Advisory Contract	60
Dividend Reinvestment Plan	69
Voting Proxies on Fund Portfolio Securities	72
Quarterly Portfolio Schedule	72
Source of Distributions - Notice	72
Certification Disclosure	73

Management's Discussion of Fund

Performance (unaudited)

The total return of Federated Hermes Premier Municipal Income Fund

(the "Fund") based on net asset value (NAV) for the 12-month reporting period ended November 30, 2022 was -17.84% for the Fund's Common Shares (FMN).1 This total return consisted of 3.44% of tax-exempt dividends and reinvestments and a depreciation of -21.28% in NAV of the Common Shares.2 The Fund's broad-based securities market index, the S&P Municipal Bond Index (SPMUNI),3 had a total return of -7.94% during the reporting period. The median total return of the Lipper General Municipal Debt Funds (Leveraged) Median (LGMDF),4 a peer group comparison for the Fund, was -17.28% during the reporting period. The Fund's and the LGMDF's total returns reflected the effect of leverage, cash flows, transaction costs and expenses, which were not reflected in the total return of the SPMUNI.

The Fund's use of structural leverage was the dominant factor detracting from relative performance as leverage amplified the steep decline in the Fund's NAV amid the Federal Reserve's (the "Fed") sharp tightening of monetary policy to counter four-decade highs in U.S. inflation. The Fund's leveraged strategy increased the monthly dividends paid to shareholders as the cost of leverage remained below the yield on its bond portfolio. The cost of leverage increased as the dividend rate paid to preferred shareholders is directly linked to the Securities Industry and Financial Markets Association (SIMFA) Municipal Swap index, which increased sharply as the Fed tightened monetary policy, rising from 0.05% at November 30, 2021 to 1.85% at November 30, 2022.

Excluding the impact of leverage, the Fund's portfolio underperformed the SPMUNI. Security selection and allocation of bonds among different credit ratings5 detracted from relative performance. Sector allocation, duration6 and yield curve7 positioning offered positive contributions to relative performance.

PERFORMANCE AT NAV

The Fund provided similar performance at NAV relative to its peer group of leveraged long-term municipal closed-end funds. Additional performance data is updated monthly on FederatedInvestors.com.

For the Period Ended November 30, 2022:

			Total Returns (Annualized)
						Current
		1-Year	3-Year	5-Year	10-Year	Yield8
FMN	-17.84%	-3.12%	0.28%	2.33%	3.99%
Lipper General Municipal
Debt Funds Median (Leveraged)	-17.28%	-2.72%	0.40%	2.22%	4.39%

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PERFORMANCE AT MARKET PRICE

For the Period Ended November 30, 2022:

			Total Returns (Annualized)
						Dividend
		1-Year	3-Year	5-Year	10-Year	Yield9
FMN	-24.14%	-3.66%	-0.32%	0.93%	4.46%
Lipper General Municipal
Debt Funds Median (Leveraged)	-21.67%	-2.89%	0.54%	1.40%	4.70%

MARKET PRICE AND NAV

A closed-end fund's market price typically differs from its NAV. If a closed-end fund's shares trade at a price below their NAV, they are said to be trading at a discount. Conversely, if a closed-end fund's shares trade at a price above their NAV, they are said to be trading at a premium. Market forces in the trading of the shares of a fund determine the market price, while a fund's NAV is primarily based on the total market value of the securities held in a fund's portfolio. The extent to which the share price and NAV diverge will affect the return for a fund's shareholders. Below is the Premium/Discount of Market Price to NAV for the Fund and the median for its peers on the following dates:

Premium(+)/Discount(-)	11/30/2022	5/31/2022	11/30/2021
FMN	-10.55%	-9.08%	-2.75%
Lipper General Municipal Debt
Funds Median (Leveraged)	-7.37%	-6.66%	-1.93%

MARKET OVERVIEW

Municipal bond and U.S. Treasury yields increased sharply during the

12-month reporting period as U.S. inflation increased to the highest levels in over 40 years, reaching a high of 9.1% as measured by the year-over-year percent change in the Consumer Price Index at the end of June 2022. The ongoing reopening of the global economy as the pandemic eased, stimulative monetary policy, lingering effects of earlier stimulative U.S. fiscal policy, global supply chain disruptions and widespread resource constraints drove inflation sharply higher. The Fed responded to the inflation surge by rapidly increasing target interest rates and slowly shrinking its large balance sheet. The upper band of the Fed's federal funds target range rose from 0.25% at November 30, 2021 to 4.00% at November 30, 2022.

U.S. economic growth decelerated in 2022 as higher interest rates slowed new home building and business investment; government spending fell and exports declined as the dollar surged. Bond mutual funds experienced record redemptions during most of the period as investors reacted to falling bond prices and negative total returns. Later in the reporting period, some decline in

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inflation, slowing global growth and comments from Fed policy makers prompted expectations that the Fed would soon reach a pause in their tightening in monetary policy. The moderating outlook for inflation and Fed policy prompted some recovery in investor demand for bonds and a partial retracement lower in Treasury and municipal yields. Very light municipal bond supply amid renewed demand amplified the partial downward yield retracement late in the period for municipal bonds. During the fiscal year, the yields on 2-, 10- and 30-year Treasury securities increased 374, 216 and

195 basis points, respectively. Yields on 2-, 10- and 30-year AAA tax-exempt municipal bonds, as measured by Bloomberg Evaluation Services (BVAL),10 increased 235, 168 and 202 basis points, respectively, during the period.

SECURITY SELECTION

During the reporting period, security selection provided a large, negative contribution to relative performance as gross return was below that of the SPMUNI after accounting for duration, yield curve, credit quality or sector positioning. In particular, sharp underperformance of low coupon bonds that experienced large duration extension amid the rapid increase in market yields detracted from Fund relative performance. When market yields were lower, such securities had been priced to their call dates. The rapid rise in market yields shifted pricing of these securities to their maturity dates as yields increased, driving prices lower. Many such securities experienced further price loss because their prices declined below the threshold that causes their future price accretion to be treated as taxable income (i.e., below the de minimis threshold for market discount bonds under federal tax rules).

CREDIT QUALITY

Mid- and lower-quality municipal bonds underperformed during the period. The heavy redemptions from bond mutual funds and rising yields on high quality instruments prompted widening in credit spreads for A-rated,BBB-rated and below investment grade securities relative to AAA-rated municipal yields.11 The Fund held overweight allocations relative to the SPMUNI in A-rated,BBB-rated and below investment grade securities and underweight allocations to high-quality (AAA- and AA-rated) securities, detracting from relative performance.

SECTOR ALLOCATION

The allocation of holdings across municipal sectors had a net small positive impact on relative performance during the reporting period. For example, overweight exposure to underperforming bonds of not-for-profit senior care providers and hospitals detracted from performance, while underweight exposure to underperforming Local GO and Dedicated Tax bonds provided a larger positive contribution to relative performance.

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