UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
811-21235
(Investment Company Act File Number)
Federated Premier Municipal Income Fund
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 11/30/07
Date of Reporting Period: Quarter ended 8/31/07
ITEM 1. SCHEDULE OF INVESTMENTS
FEDERATED PREMIER MUNICIPAL INCOME FUND
PORTFOLIO OF INVESTMENTS
August 31, 2007 (unaudited)
PRINCIPAL VALUE
AMOUNT
MUNICIPAL BONDS-98.9%
ALABAMA--0.4%
$ 550,000 Courtland, AL IDB, PCR Refunding Bonds (Series 2005A), 5.00% (International Paper Co.), 6/1/2025 $ 523,831
ARIZONA-1.4%
400,000 Arizona Tourism & Sports Authority, Multipurpose Stadium Facilities Tax Revenue Bonds (Series 424,884
A), 5.00% (United States Treasury PRF 7/1/2013@100), 7/1/2024
750,000 Tempe, AZ IDA, Senior Living Revenue Bonds (Series A), 6.75% (Friendship Village of Tempe), 796,050
12/1/2030
750,000 Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.50%, 7/15/2027 771,998
TOTAL 1,992,932
ARKANSAS-0.8%
1,000,000 Arkansas Development Finance Authority, Hospital Revenue Bonds (Series 2000), 7.375% (Washington 1,080,560
Regional Medical Center)/(United States Treasury PRF 2/1/2010@100)/(Original Issue Yield:
7.50%), 2/1/2029
CALIFORNIA-5.8%
1,000,000 California State Department of Water Resources Power Supply Program, Power Supply Revenue Bonds 1,082,830
(Series A), 5.375% (United States Treasury PRF 5/1/2012@101)/(Original Issue Yield: 5.48%),
5/1/2022
1,000,000 California State, Refunding UT GO Bonds, 5.25%, 2/1/2020 1,041,020
1,000,000 California State, UT GO Bonds, 5.25%, 10/1/2020 1,046,280
900,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Bonds (Series 873,927
2007A-1), 5.75%, 6/1/2047
250,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds 287,085
(Series 2003A-1), 6.75% (United States Treasury PRF 6/1/2013@100)/(Original Issue Yield: 7.00%),
6/1/2039
750,000 Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Revenue Bonds (Series 2003A- 902,700
2), 7.90% (United States Treasury PRF 6/1/2013@100), 6/1/2042
500,000 La Verne, CA, Revenue COPs (Series 2003B), 6.625% (Brethren Hillcrest Homes)/(Original Issue 530,390
Yield: 6.70%), 2/15/2025
1,000,000 Stockton, CA Public Financing Authority, Redevelopment Projects Revenue Bonds (Series 2006A), 959,200
5.25% (Radian Asset Assurance INS), 9/1/2031
1,500,000 Upland, CA Public Financing Authority, Water System Improvement Lease Revenue Bonds (Issue of 1,529,070
2003), 5.00% (AMBAC INS), 10/1/2027
TOTAL 8,252,502
COLORADO-6.6%
725,000 Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00%, 12/1/2023 795,825
1,000,000 Bromley Park, CO Metropolitan District No.2, UT GO Bonds, 5.125% (Radian Asset Assurance INS), 937,950
12/1/2037
1,000,000 Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023 1,008,080
500,000 Colorado Educational & Cultural Facilities Authority, Revenue Refunding Bonds (Series A), 7.00% 541,440
(Denver Academy)/(Original Issue Yield: 7.25%), 11/1/2023
1,000,000 Colorado Health Facilities Authority, Revenue Bonds (Series 2002A), 6.125% (Covenant Retirement 1,023,820
Communities, Inc.)/(Original Issue Yield: 6.40%), 12/1/2033
2,000,000 Colorado Health Facilities Authority, Revenue Bonds (Series 2006A), 4.75% (Catholic Health 1,874,580
Initiatives)/(Original Issue Yield: 4.828%), 9/1/2040
250,000 Conservatory Metropolitan District, CO, LT GO Bonds, 6.75% (United States Treasury PRF 292,253
12/1/2013@102), 12/1/2034
500,000 Conservatory Metropolitan District, CO, LT GO Bonds, 7.55% (United States Treasury PRF 605,155
12/1/2013@102), 12/1/2032
665,000 Conservatory Metropolitan District, CO, Refunding & Improvement LT GO Bonds, 5.125% (Radian 615,504
Asset Assurance INS), 12/1/2037
1,000,000 Denver, CO Health & Hospital Authority, Revenue Bonds, 6.25% (United States Treasury PRF 1,140,990
12/1/2014@100)/(Original Issue Yield: 6.28%), 12/1/2033
500,000 Southlands, CO Metropolitan District No. 1, LT GO Bonds (Series 2004), 7.00% (United States 596,330
Treasury PRF 12/1/2014@100)/(Original Issue Yield: 7.05%), 12/1/2024
TOTAL 9,431,927
CONNECTICUT-1.4%
1,250,000 Connecticut State Development Authority, First Mortgage Gross Revenue Health Care Project Bonds 1,269,588
(Series 2003), 5.85% (Elim Park Baptist Home, Inc.)/(Original Issue Yield: 5.98%), 12/1/2033
825,000 Connecticut State HEFA, Revenue Bonds (Series 2006B), 5.00% (Canterbury School)/ 767,877
(Radian Asset Assurance INS), 7/1/2036
TOTAL 2,037,465
DISTRICT OF COLUMBIA-1.9%
2,500,000 District of Columbia Tobacco Settlement Financing Corp., Asset-Backed Revenue Bonds, 6.50% 2,735,600
(Original Issue Yield: 6.67%), 5/15/2033
FLORIDA-8.3%
600,000 Broward County, FL Educational Facilities Authority, Educational Facilities Revenue Bonds 609,798
(Series 2004B), 5.60% (Nova Southeastern University)/(Original Issue Yield: 5.625%), 4/1/2029
400,000 1 Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida 474,440
Convention and Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102), 10/1/2033
1,490,000 Citrus County, FL Hospital Board, Revenue Refunding Bonds, 6.375% (Citrus Memorial 1,554,636
Hospital)/(Original Issue Yield: 6.50%), 8/15/2032
1,275,000 Harbor Bay, FL Community Development District, Special Assessment Revenue Bonds, 6.75%, 5/1/2034 1,348,835
2,000,000 Jacksonville, FL Sales Tax, Revenue Bonds (Series 2003), 5.00% (MBIA Insurance Corp. INS), 2,048,340
10/1/2024
400,000 Midtown Miami, FL Community Development District, Special Assessment Bonds (Series 2004A), 395,812
6.00%, 5/1/2024
400,000 Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.25%, 410,228
5/1/2034
1,000,000 South Lake County, FL Hospital District, Revenue Bonds, 6.625% (South Lake Hospital, Inc.), 1,063,280
10/1/2023
2,000,000 South Miami, FL Health Facilities Authority, Health Facilities Revenue Bonds (Series 2007), 1,967,480
5.00% (Baptist Health System of South Florida), 8/15/2042
500,000 Tuscany Reserve Community Development District, FL, Capital Improvement Revenue Bonds (Series 464,195
2005A), 5.55%, 5/1/2036
1,030,000 Verandah West, FL Community Development District, Capital Improvement Revenue Bonds (Series 1,080,377
2003A), 6.625% (Original Issue Yield: 6.75%), 5/1/2033
500,000 Winter Garden Village at Fowler Groves Community Development District, FL, Special Assessment 471,225
Bonds (Series 2006), 5.65%, 5/1/2037
TOTAL 11,888,646
HAWAII-1.1%
1,400,000 Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 8.00% 1,574,146
(Kahala Nui)/(Original Issue Yield: 8.175%), 11/15/2033
ILLINOIS-4.7%
996,000 Antioch Village, IL Special Service Area No. 1, Special Tax Revenue Bonds, 6.625% (Deercrest 1,033,768
Project), 3/1/2033
2,500,000 Chicago, IL Sales Tax, Revenue Bonds, 5.25% (FGIC INS)/(Original Issue Yield: 5.385%), 1/1/2028 2,563,900
1,000,000 Chicago, IL Special Assessment, Improvement Revenue Bonds, 6.75% (Lakeshore East 1,049,430
Project)/(Original Issue Yield: 6.769%), 12/1/2032
420,000 DuPage County, IL, Special Tax Bonds (Series 2006), 5.625% (Naperville Campus LLC), 3/1/2036 398,509
1,000,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Series A), 5.70% (Augustana 1,017,300
College)/(Original Issue Yield: 5.90%), 10/1/2032
625,000 Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.00% (Landing at Plymouth 619,369
Place)/(Original Issue Yield: 6.04%), 5/15/2037
TOTAL 6,682,276
INDIANA-1.3%
1,930,000 Indiana Health & Educational Facility Financing Authority, Revenue Bonds (Series 2005), 5.25% 1,874,551
(Baptist Homes of Indiana), 11/15/2035
KENTUCKY-2.6%
325,000 Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(Original Issue 347,688
Yield: 6.97%), 10/1/2028
1,175,000 Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(United States 1,283,288
Treasury PRF 10/1/2010@101)/(Original Issue Yield: 6.97%), 10/1/2028
2,000,000 Kentucky Municipal Power Agency, Power System Revenue Bonds (Series 2007A), 5.25% (MBIA 2,058,000
Insurance Corp. INS), 9/1/2042
TOTAL 3,688,976
LOUISIANA-1.4%
1,000,000 Louisiana State, Gasoline & Fuels Tax Revenue Bonds (Series 2006A), 4.75% (Louisiana State Gas & 982,250
Fuels)/(FSA INS), 5/1/2039
1,000,000 St. John the Baptist Parish, LA, Revenue Bonds (Series 2007A), 5.125% (Marathon Oil Corp.), 960,280
6/1/2037
TOTAL 1,942,530
MARYLAND-0.2%
300,000 Maryland State Health & Higher Educational Facilities Authority, Revenue Bonds (Series 2007A), 281,940
5.25% (King Farm Presbyterian Retirement Community), 1/1/2027
MASSACHUSETTS-2.2%
1,000,000 Massachusetts HEFA, Revenue Bonds (Series 2003E), 6.75% (Jordan Hospital )/(Original Issue 1,051,180
Yield: 7.00%), 10/1/2033
2,000,000 Massachusetts State Development Finance Agency, Revenue Bonds, 5.75% (Massachusetts College of 2,088,120
Pharmacy & Allied Health Sciences), 7/1/2033
TOTAL 3,139,300
MICHIGAN-2.2%
2,000,000 Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco 2,182,080
Corp.)/(United States Treasury PRF 5/1/2012@100), 5/1/2018
1,000,000 Detroit, MI Sewage Disposal System, Refunding Senior Lien Revenue Bonds (Series 2003A), 5.00% 1,024,310
(FSA INS), 7/1/2024
TOTAL 3,206,390
MINNESOTA-0.7%
900,000 St. Paul, MN Port Authority, Hotel Facility Revenue Bonds (Series 2), 7.375% (Radisson Kellogg 955,035
Project)/(United States Treasury PRF 8/1/2008@103)/(Original Issue Yield: 7.50%), 8/1/2029
MISSISSIPPI-3.0%
2,000,000 Lowndes County, MS Solid Waste Disposal, Refunding PCRBs (Series 1992B), 6.70% (Weyerhaeuser 2,268,680
Co.), 4/1/2022
2,000,000 Mississippi Development Bank, Special Obligation Bonds (Series 2006A), 5.00% (Municipal Energy 2,008,240
Agency of Mississippi)/(XL Capital Assurance Inc. INS), 3/1/2041
TOTAL 4,276,920
MISSOURI-0.3%
500,000 Missouri Development Finance Board, Infrastructure Facilities Revenue Bonds (Series 2003A), 481,475
5.50% (Branson, MO)/(Original Issue Yield: 5.56%), 12/1/2032
NEVADA-3.3%
650,000 1 Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series 663,884
2004A), 7.00% (Las Ventanas Retirement Community)/(Original Issue Yield: 7.125%), 11/15/2034
2,000,000 Nevada State, COPs (Series 2004: Capitol Complex Building 1), 5.00% (FGIC INS), 4/1/2032 2,026,780
2,000,000 Truckee Meadows, NV Water Authority, Water Revenue Bonds (Series 2001A), 5.00% (United States 2,092,020
Treasury PRF 7/1/2011@100)/(Original Issue Yield: 5.36%), 7/1/2025
TOTAL 4,782,684
NEW HAMPSHIRE-2.3%
3,000,000 Manchester, NH School Facilities, Revenue Bonds, 5.50% (United States Treasury PRF 3,251,340
6/1/2013@100), 6/1/2028
NEW JERSEY-1.7%
500,000 New Jersey EDA, Revenue Bonds, (Series 2004), 5.75% (NJ Dedicated Cigarette Excise 517,830
Tax)/(Original Issue Yield: 5.89%), 6/15/2029
300,000 New Jersey EDA, Revenue Refunding Bonds (Series A), 5.80% (Winchester Gardens at Ward 302,526
Homestead)/(Original Issue Yield: 5.82%), 11/1/2031
600,000 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.50% (Pascack Valley 420,612
Hospital Association)/(Original Issue Yield: 6.72%), 7/1/2023
1,000,000 New Jersey State Educational Facilities Authority, Revenue Bonds, Project C, 6.50% (Georgian 1,133,300
Court University)/(United States Treasury PRF 7/1/2013@100), 7/1/2033
TOTAL 2,374,268
NEW MEXICO-0.6%
750,000 1,2 Jicarilla, NM Apache Nation, Revenue Bonds, 5.50%, 9/1/2023 789,090
NEW YORK-6.4%
190,000 Amherst, NY IDA, Civic Facility Revenue Bonds (Series 2006A), 5.20% (Beechwood Health Care 166,450
Center, Inc.), 1/1/2040
750,000 Dutchess County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 7.50% (St. Francis 811,275
Hospital and Health Centers), 3/1/2029
750,000 Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.25%), 757,508
7/1/2022
1,000,000 Metropolitan Transportation Authority, NY, MTA State Service Contract Revenue Refunding Bonds, 1,024,060
(Series A), 5.00% (New York State)/(FGIC INS)/(Original Issue Yield: 5.14%), 7/1/2022
2,000,000 Metropolitan Transportation Authority, NY, Revenue Bonds (Series 2006A), 5.00% (MTA 2,029,340
Transportation Revenue), 11/15/2031
800,000 1 New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC), 835,856
3/1/2035
1,000,000 New York City, NY IDA, PILOT Revenue Bonds (Series 2006), 4.75% (Yankee Stadium LLC)/(MBIA 960,600
Insurance Corp. INS), 3/1/2046
2,000,000 New York State Dormitory Authority, Revenue Bonds (Series 2003A), 5.50% (Brooklyn Law 2,066,240
School)/(Radian Asset Assurance INS), 7/1/2019
530,000 New York State Dormitory Authority, Revenue Bonds (Series 2007B), 5.25% (Health Quest Systems, 550,591
Inc. Obligated Group)/(Assured Guaranty Corp. INS), 7/1/2027
TOTAL 9,201,920
NORTH CAROLINA-1.3%
1,000,000 North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series 1,019,640
2003C), 5.375% (Original Issue Yield: 5.57%), 1/1/2017
800,000 North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80% 819,640
(Arc of North Carolina Projects), 10/1/2034
TOTAL 1,839,280
NORTH DAKOTA-1.5%
2,000,000 Fargo, ND, Health System Revenue Bonds (Series 2000A), 5.60% (Meritcare Obligated Group)/(FSA 2,089,180
INS)/(Original Issue Yield: 5.70%), 6/1/2021
OHIO-0.7%
1,000,000 Ohio State Air Quality Development Authority, PCR Refunding Bonds (Series 2002A), 6.00% 1,005,120
(Cleveland Electric Illuminating Co.), 12/1/2013
OREGON-0.3%
500,000 1 Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%, 494,670
10/1/2026
PENNSYLVANIA-3.8%
1,165,000 Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny 1,375,259
Health System)/(United States Treasury PRF 11/15/2010@102)/(Original Issue Yield: 9.70%),
11/15/2030
935,000 Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 1,090,575
7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF
1/1/2013@101)/(Original Issue Yield: 7.50%), 1/1/2035
360,000 Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A), 419,900
7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF
1/1/2013@101)/(Original Issue Yield: 7.50%), 1/1/2035
2,000,000 Montgomery County, PA Higher Education & Health Authority Hospital, Revenue Bonds (Series 2,035,060
2006FF1), 5.00% (Dickinson College)/(CDC IXIS Financial Guaranty NA INS), 5/1/2031
500,000 Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, (Series A), 6.00% (UPMC 531,205
Health System)/(Original Issue Yield: 6.16%), 1/15/2031
TOTAL 5,451,999
SOUTH CAROLINA-5.3%
1,000,000 Clemson University, SC, University Revenue Bonds, 5.00% (XL Capital Assurance Inc. INS), 1,023,260
5/1/2023
2,000,000 Kershaw County, SC Public Schools Foundation, Installment Purchase Revenue Bonds (Series 2006), 2,035,440
5.00% (Kershaw County, SC School District)/(CDC IXIS Financial Guaranty NA INS), 12/1/2029
1,940,000 Myrtle Beach, SC, Hospitality Fee Revenue Bonds (Series2004A), 5.375% (FGIC INS), 6/1/2023 2,059,931
2,500,000 South Carolina Jobs-EDA, Health System Revenue Bonds (Series A), 5.625% (Bon Secours Health 2,539,725
System)/(Original Issue Yield: 5.84%), 11/15/2030
TOTAL 7,658,356
SOUTH DAKOTA-1.3%
1,750,000 South Dakota State Health & Educational Authority, Revenue Bonds, 5.65% (Westhills Village 1,808,887
Retirement Community)/(Original Issue Yield: 5.75%), 9/1/2023
TENNESSEE-2.9%
2,000,000 Johnson City, TN Health & Education Facilities Board, Hospital Revenue Refunding Bonds (Series 2,272,400
A), 7.50% (Mountain States Health Alliance), 7/1/2025
270,000 Knox County, TN Health Education & Housing Facilities Board, Hospital Facilities Revenue Bonds, 279,706
6.50% (Baptist Health System of East Tennessee)/(Original Issue Yield: 6.625%), 4/15/2031
1,535,000 Knox County, TN Health Education & Housing Facilities Board, Refunding Improvement Revenue Bonds 1,554,556
(Series 2003B), 5.75% (East Tennessee Children's Hospital)/(Original Issue Yield: 5.90%),
7/1/2033
TOTAL 4,106,662
TEXAS-10.8%
600,000 Abilene, TX HFDC, Retirement Facilities Revenue Bonds (Series 2003A), 7.00% (Sears Methodist 646,212
Retirement )/(Original Issue Yield: 7.25%), 11/15/2033
700,000 Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 7.125% (Wise Regional 748,391
Health System), 9/1/2034
385,000 HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at 364,329
Gleannloch Farms, Inc.), 2/15/2027
585,000 HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at 538,738
Gleannloch Farms, Inc.), 2/15/2037
1,400,000 Harlandale, TX ISD, UT GO School Building Bonds, 4.75% (GTD by PSFG)/(Original Issue Yield: 1,345,904
4.80%), 8/15/2040
2,500,000 Houston, TX Combined Utility System, First Lien Revenue Refunding Bonds (Series 2004A), 5.25% 2,602,925
(FGIC INS), 5/15/2023
200,000 Matagorda County, TX Navigation District No. 1, Collateralized Refunding Revenue Bonds, 5.60% 200,242
(Centerpoint Energy Houston Electric), 3/1/2027
4,000,000 North Central Texas HFDC, Hospital Revenue Refunding Bonds (Series 2002), 5.25% (Children's 4,121,400
Medical Center of Dallas)/(AMBAC INS)/(Original Issue Yield: 5.35%), 8/15/2022
1,350,000 North Central Texas HFDC, Retirement Facility Revenue Bonds (Series 1999), 7.50% (Northwest 1,478,547
Senior Housing Corp. Edgemere Project)/(United States Treasury PRF 11/15/2009@102)/(Original
Issue Yield: 7.75%), 11/15/2029
500,000 Sabine River Authority, TX, PCR Refunding Bonds (Series 2001C), 5.20% (TXU Energy Co. LLC), 456,250
5/1/2028
1,050,000 Sabine River Authority, TX, PCR Refunding Bonds (Series 2003B), 6.15% (TXU Energy Co. LLC), 1,062,295
8/1/2022
335,000 Sabine River Authority, TX, Refunding PCRBs (Series 2003A), 5.80% (TXU Energy Co. LLC), 7/1/2022 333,650
500,000 Tarrant County, TX Cultural Education Facilities Finance Corp., Revenue Bonds, (Series 2006A), 505,120
6.00% (Northwest Senior Housing Corp. Edgemere Project), 11/15/2036
1,000,000 Tyler, TX HFDC, Hospital Revenue Bonds, 5.75% (Mother Frances Hospital )/(United States Treasury 1,095,090
PRF 7/1/2013@100)/(Original Issue Yield: 5.84%), 7/1/2027
TOTAL 15,499,093
VIRGINIA-3.5%
1,000,000 Broad Street CDA, VA, Revenue Bonds, 7.50% (Original Issue Yield: 7.625%), 6/1/2033 1,080,560
1,280,000 Hampton, VA Convention Center, Revenue Bonds, 5.125% (AMBAC INS), 1/15/2028 1,305,613
1,400,000 Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375% 1,670,844
(Virginia Baptist Homes Obligated Group)/(United States Treasury PRF 12/1/2013@100)/(Original
Issue Yield: 7.625%), 12/1/2032
1,000,000 Virginia Peninsula Port Authority, Coal Terminal Revenue Refunding Bonds (Series 2003), 6.00% 1,023,920
(Brinks Co. (The)), 4/1/2033
TOTAL 5,080,937
WASHINGTON-2.8%
1,910,000 King County, WA Public Hospital District No. 1, Refunding LT GO Bonds, 5.00% (FSA INS)/ 1,972,915
(Original Issue Yield: 5.17%), 12/1/2021
2,000,000 Washington State, Various Purpose UT GO Bonds (Series 2002A), 5.00% (FSA INS)/ 2,038,960
(Original Issue Yield: 5.09%), 7/1/2022
TOTAL 4,011,875
WISCONSIN-4.1%
3,000,000 Wisconsin State HEFA, Health Facilities Revenue Bonds (Series A), 5.25% (Ministry Health 3,055,410
Care)/(MBIA Insurance Corp. INS)/(Original Issue Yield: 5.38%), 2/15/2032
160,000 Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.75% (Blood Center of Wisconsin, 161,586
Inc.)/(Original Issue Yield: 5.82%), 6/1/2034
500,000 Wisconsin State HEFA, Revenue Bonds, 6.50% (Tomah Memorial Hospital, Inc.)/(Original Issue 515,815
Yield: 6.75%), 7/1/2023
500,000 Wisconsin State HEFA, Revenue Bonds, 6.625% (Tomah Memorial Hospital, Inc.)/(Original Issue 515,635
Yield: 6.875%), 7/1/2028
1,000,000 Wisconsin State HEFA, Revenue Bonds, 7.25% (Community Memorial Hospital)/(Original Issue Yield: 1,060,330
7.45%), 1/15/2033
500,000 Wisconsin State HEFA, Revenue Bonds, (Series 2006A), 5.375% (Marshfield Clinic, WI), 2/15/2034 483,220
TOTAL 5,791,996
TOTAL MUNICIPAL BONDS 141,284,359
(IDENTIFIED COST $137,065,929)
SHORT-TERM MUNICIPALS--1.1%3
ALASKA-1.0%
1,000,000 Valdez, AK Marine Terminal, (Series 2003B) Daily VRDNs (BP Pipelines (Alaska) Inc.)/(GTD by BP 1,000,000
PLC), 3.940%, 9/4/2007
500,000 Valdez, AK Marine Terminal, (Series 2003C) Daily VRDNs (BP Pipelines (Alaska) Inc.)/(GTD by BP 500,000
PLC), 3.940%, 9/4/2007
TOTAL 1,500,000
TENNESSEE-0.1%
100,000 Sevier County, TN Public Building Authority, (Series IV-J-2) Daily VRDNs (Mt. Juliet, TN)/ 100,000
(AMBAC INS)/(JPMorgan Chase Bank, N.A. LIQ), 4.000%, 9/4/2007
TOTAL SHORT-TERM MUNICIPALS (AT COST) 1,600,000
TOTAL MUNICIPAL INVESTMENTS - 100% 142,884,359
(IDENTIFIED COST $138,665,929)4
OTHER ASSETS AND LIABILITIES - NET (384,954)
LIQUIDATION VALUE OF AUCTION PREFERRED SHARES (53,675,000)
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS $ 88,824,405
At August 31, 2007, the fund holds no securities that are subject to the
federal alternative minimum tax (AMT).
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 August 31, 2007,
these restricted securities amounted to $3,257,940, which represented 2.3%
of total market value.
2 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. At August 31, 2007,
these liquid restricted securities amounted to $789,090, which represented
0.6% of total market value.
3 Current rate and next reset date shown for Variable Rate Demand Notes.
4 At August 31, 2007, the cost of investments for federal tax purposes was
$138,665,190. The net unrealized appreciation of investments for federal
tax purposes was $4,219,169. This consists of net unrealized appreciation
from investments for those securities having an excess of value over cost
of $5,564,958 and net unrealized depreciation from investments for those
securities having an excess of cost over value of $1,345,789.
Note: The categories of investments are shown as a percentage of total
market value at August 31, 2007.
INVESTMENT VALUATION
Market values of the Funds' portfolio securities are determined as follows:
{circle}for fixed-income securities, according to prices as furnished by an
independent pricing service, except that fixed-income securities with
remaining maturities of less than 60 days at the time of purchase are
valued at amortized cost;
{circle}for investments in other open-end registered investment companies,
based on net asset value;
{circle}futures contracts and options are generally valued at market values
established by the exchanges on which they are traded at the close of
trading on such exchanges. Options traded in the over-the-counter market
are generally valued according to the mean between the last bid and the
last asked price for the option as provided by an investment dealer or
other financial institution that deals in the option. The Board of
Trustees (the "Trustees") may determine in good faith that another method
of valuing such investments is necessary to appraise their fair market
value;
{circle}prices for total return swaps are based upon a valuation model
determined by management incorporating underlying reference indexes,
interest rates, yield curves and other market data or factors; prices for
credit default swaps are furnished by an independent pricing service and
are based upon a valuation model incorporating default probabilities,
recovery rates and other market data or factors; prices for interest rate
swaps are furnished by an independent pricing service and are based upon a
valuation model incorporating interest rates, yield curves and other
market data or factors; and
{circle}for all other securities at fair value as determined in accordance
with procedures established by and under the general supervision of the
Trustees.
Prices for fixed-income securities furnished by a pricing service may be based
on a valuation matrix which incorporates both dealer-supplied valuations and
electronic data processing techniques. Such prices are generally intended to be
indicative of the bid prices currently offered to institutional investors for
the securities. The Trustees have approved the use of such pricing services. A
number of pricing services are available, and the Fund may use various pricing
services or discontinue the use of any pricing service.
Prices provided by independent pricing services may be determined without
relying exclusively on quoted prices and may consider institutional trading in
similar groups of securities, yield, quality, stability, risk, coupon rate,
maturity, type of issue, trading characteristics, and other market data or
factors. From time to time, when prices cannot be obtained from an independent
pricing service, securities may be valued based on quotes from broker-dealers or
other financial institutions that trade the securities.
RESTRICTED SECURITIES
Additional information on restricted securities, excluding securities purchased
under Rule 144A that have been deemed liquid by the Trustees, held at August 31,
2007 is as follows:
SECURITY ACQUISITION DATE ACQUISITION COST
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),
10/1/2033 5/9/2003 $400,000
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
Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series
2004A), 7.00% (Las Ventanas Retirement Community)/(Original Issue Yield: 7.125%),
11/15/2034 12/23/2004 $639,925
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
The following acronyms are used throughout this portfolio:
AMBAC --American Municipal Bond Assurance Corporation
CDA --Community Development Authority
COPs --Certificates of Participation
EDA --Economic Development Authority
EDFA --Economic Development Finance Authority
FGIC --Financial Guaranty Insurance Company
FSA --Financial Security Assurance
GO --General Obligation
GTD --Guaranteed
HDA --Hospital Development Authority
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
LIQ --Liquidity Agreement
LT --Limited Tax
PCR --Pollution Control Revenue
PCRBs --Pollution Control Revenue Bonds
PRF --Prerefunded
PSFG --Permanent School Fund Guarantee
UT --Unlimited Tax
VRDNs --Variable Rate Demand Notes
ITEM 2. CONTROLS AND PROCEDURES
(a) The registrant's Principal Executive Officer and Principal Financial Officer
have concluded that the registrant's disclosure controls and procedures (as
defined in rule 30a-3(c) under the Act) are effective in design and
operation and are sufficient to form the basis of the certifications required by
Rule 30a-(2) under the Act, based on their evaluation of these disclosure
controls and procedures within 90 days of the filing date of this report on Form
N-Q.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal
quarter that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934 AND THE
INVESTMENT COMPANY ACT OF 1940, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE
SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED.
REGISTRANT FEDERATED PREMIER MUNICIPAL INCOME FUND
BY /S/ RICHARD A. NOVAK
RICHARD A. NOVAK
PRINCIPAL FINANCIAL OFFICER
DATE OCTOBER 23, 2007
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.
BY /S/ J. CHRISTOPHER DONAHUE
J. CHRISTOPHER DONAHUE
PRINCIPAL EXECUTIVE OFFICER
DATE OCTOBER 23, 2007
BY /S/ RICHARD A. NOVAK
RICHARD A. NOVAK
PRINCIPAL FINANCIAL OFFICER
DATE OCTOBER 23, 2007