Filing Details

 

1	NAME OF REPORTING PERSON   Karpus Investment Management
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP		(a) x   (b) o
3	SEC USE ONLY
4	SOURCE OF FUNDS   AF
5	CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)		¨
6	CITIZENSHIP OR PLACE OF ORGANIZATION   NEW YORK
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH	7	SOLE VOTING POWER   1,488,555
	8	SHARED VOTING POWER   -
	9	SOLE DISPOSITIVE POWER   1,488,555
	10	SHARED DISPOSITIVE POWER   -
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON   1,488,555
12	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES		o
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)   21.3%
14	TYPE OF REPORTING PERSON   IA

 

1	NAME OF REPORTING PERSON   George W. Karpus
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP		(a) x   (b) o
3	SEC USE ONLY
4	SOURCE OF FUNDS                   AF
5	CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)		¨
6	CITIZENSHIP OR PLACE OF ORGANIZATION   NEW YORK
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH	7	SOLE VOTING POWER   123,301*
	8	SHARED VOTING POWER   9,826*
	9	SOLE DISPOSITIVE POWER   123,301*
	10	SHARED DISPOSITIVE POWER   9,826*
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON   133,127*
12	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES		o
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)   1.9%
14	TYPE OF REPORTING PERSON   OO

 

Item 1.

Security and Issuer.

 

Item 2.

Identity and Background.

 

 

 

 

 

Item 3.

Source and Amount of Funds or Other Consideration.

 

Item 4.

Purpose of Transaction..

 

 

 

 

 

Item 5.

Interest in Securities of the Issuer.

 

 

 

 

 

Name	Position & Present Principal Occupation	Business Address	Shares Owned
George W. Karpus	President, CEO, and Chairman of the Board	183 Sully’s Trail, Pittsford, New York 14534	See Above
Kathleen Finnerty Crane	Chief Financial Officer and Chief Compliance Officer	183 Sully’s Trail, Pittsford, New York 14534	None
Dana R. Consler	Executive Vice President	183 Sully’s Trail, Pittsford, New York 14534	None
Thomas M. Duffy	Vice President	183 Sully’s Trail, Pittsford, New York 14534	None
Sharon L. Thornton	Senior Director of Investments	183 Sully’s Trail, Pittsford, New York 14534	None
Daniel L. Lippincott	Sr. Tax-Sensitive Manager and Director of Investment Personnel	183 Sully’s Trail, Pittsford, New York 14534	None

 

 

 

 

Nature of the Transaction

Securities Purchased/(Sold)

Price Per Share($)

Date of Purchase / Sale

Purchase of Common Stock	2,000	$12.83	1/18/2017
Purchase of Common Stock	5,300	$12.75	1/19/2017
Purchase of Common Stock	1,900	$12.68	1/20/2017
Purchase of Common Stock	9,640	$12.73	1/23/2017
Purchase of Common Stock	2,500	$12.68	1/25/2017
Purchase of Common Stock	1,500	$12.69	1/26/2017
Sale of Common Stock	(1,300)	$12.74	1/27/2017
Purchase of Common Stock	9,700	$12.78	2/2/2017
Purchase of Common Stock	6,479	$12.82	2/6/2017
Purchase of Common Stock	200	$12.82	2/7/2017
Purchase of Common Stock	5,758	$12.87	2/8/2017
Purchase of Common Stock	3,629	$12.85	2/9/2017
Purchase of Common Stock	15,584	$12.84	2/13/2017
Purchase of Common Stock	400	$12.82	2/14/2017
Purchase of Common Stock	2,200	$12.82	2/22/2017
Purchase of Common Stock	13,885	$12.91	2/27/2017
Purchase of Common Stock	30,795	$12.98	2/28/2017
Purchase of Common Stock	8,489	$12.93	3/1/2017
Purchase of Common Stock	1,904	$12.82	3/3/2017
Purchase of Common Stock	1,277	$12.81	3/6/2017
Purchase of Common Stock	500	$12.81	3/7/2017
Purchase of Common Stock	1,493	$12.71	3/8/2017
Purchase of Common Stock	9,187	$12.70	3/9/2017
Purchase of Common Stock	4,298	$12.72	3/10/2017
Purchase of Common Stock	8,100	$12.68	3/13/2017
Purchase of Common Stock	900	$12.73	3/14/2017

This letter shall serve as notice to the Federated Premier Intermediate Municipal Income Fund ("FPT" or the "Fund"), as to Karpus Management, Inc.'s ("Karpus") timely submittal of a shareholder proposal pursuant to Rule 14a-8 of the Securities Exchange Act of 1934 for presentation to FPT shareholders at the Fund's next annual shareholders' meeting anticipated to be held in September 2017, or any postponement or adjournment thereof (the "Meeting"). Karpus' non-binding 14a-8 shareholder proposal (the "Proposal") is as follows: BE IT RESOLVED, the shareholders of the Federated Premier Intermediate Municipal Income Fund ("FPT" or the "Fund") request that the Board of Trustees promptly consider authorizing a self-tender offer for all outstanding common shares of the Fund at or close to net asset value ("NAV"). If more than 50% of the Fund's outstanding common shares are tendered, the tender offer should be cancelled and the Board should take the steps necessary to liquidate, merge, or convert the Fund to an open-end mutual fund or exchange traded fund. Supporting Statement Although trading at a discount for a short period of time is not uncommon for closed-end funds, the persistent nature of FPT's discount combined with poor NAV performance creates cause for concern and requires strong action by the Board. Presumably, these exact conditions are why the Fund included language in its prospectus nearly 15 years ago, which stated: "shares of closed-end funds frequently trade at a discount to their net asset value. Because of this possibility and the recognition that any such discount may not be in the interest of shareholders, the fund's board might consider from time to time engaging in open-market repurchases, tender offers for common shares or other programs intended to reduce the discount" [emphasis added]. The prospectus further stated: "the board might also consider converting the fund to an open-end mutual fund, which would also require a vote of the shareholders of the fund" [emphasis added]. To our knowledge, none of these actions have been undertaken. Furthering our concerns, consider the following:

• *FPT's current discount is 7.4%. Its Lipper peer group's weighted average discount (by total net assets) is 4.6%.
  *FPT's discount has averaged over 8% over the last 3 years.
  *Based on NAV return, FPT ranks as follows compared to it Lipper group peers:
  
  • *1 Yr. - 75th percentile
    *3 Yrs. - 73rd percentile
    *5 Yrs. - 60th percentile
    

Sources: Closed-end Fund Assocaition, Lipper Classification Average for Intermediate Municipal Debt Funds and Bloomberg Finance, L.P. Data through 3/17/2017. The Fund's persistent discount and repeated underperformance compared to its Lipper peer group clearly show that our proposal should be approved and implemented by the Board. If put in place and a majority of outstanding shares are tendered, this would indicate that shareholders do not support the Fund continuing in its closed-end fund format. The Fund and Board are likely to come up with a litany of arguments against our Proposal but the simple fact of the matter is that the Board has not been able to effectively manage the Fund's discount, nor have they taken action to address Federated Investment Management Company's perpetual underperformance. Now is the time for action! Please vote FOR Karpus' Proposal and let the Board know that the status quo is not acceptable. END OF PROPOSAL As is required by Rule 14a-8, attached as Exhibits 1 and 2 are letters from U. S. Bank N.A. and the "record" holder of the referenced shares, verifying that the referenced shares were continuously and beneficially owned, and had a market value of $2,000 or more, for at least a one year period prior to the date of the submittal of the above Proposal. Karpus intends to hold the shares referenced through the date of the Meeting. Please advise us immediately if this notice is deficient in any way or if any additional information is required so that Karpus may promptly provide it in order to cure any deficiency.

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Exhibit 1
U.S. Bank N.A. Letter

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Exhibit 2
Cede & Co. Letter

 

In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of each of them of a Statement on Schedule 13D (including additional amendments thereto), dated the date hereof, with respect to the shares of Common Stock of the Federated Premier Intermediate Municipal Income Fund. This Joint Filing Agreement shall be filed as an Exhibit to such statement. March 21, 2017