Does Federated Hermes Premier Municipal Income Fund pass AAOIFI screening?

Federated Hermes Premier Municipal Income Fund (FMN) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (FMN: 0.0%), (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. HalalScreener provides free AAOIFI screening for 6,200+ stocks at halalscreener.app.

How much purification is needed for Federated Hermes Premier Municipal Income Fund stock?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the exact percentage and amount for Federated Hermes Premier Municipal Income Fund (FMN) using the latest financial data.

Where can I screen Federated Hermes Premier Municipal Income Fund for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Federated Hermes Premier Municipal Income Fund (FMN) and 5,100+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows the verdict, compliance grade, score, and debt ratio free. No credit card or signup required for basic screening; the full ratio breakdown is part of Pro. HalalScreener also includes an AI Islamic Scholar for follow-up questions about FMN's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

FMN: Is Federated Hermes Premier Municipal Income Fund Halal?

Federated Hermes Premier Municipal Income Fund

NYSEFinancial ServicesUS

$11.02

+0.27%

Market Cap: 86.2M

Compliance Status

Not Halal

Screened on Aug 26, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Federated Hermes Premier Municipal Income Fund (FMN) halal? Not Halal. Based on AAOIFI screening, Federated Hermes Premier Municipal Income Fund has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

Basket rule

Over the limit

An ETF is halal when non-compliant holdings stay under 5% of the basket by weight.

100.0% of 5.0% limit

100% of the basket's holdings were screened individually.

About Federated Hermes Premier Municipal Income Fund

Federated Premier Municipal Income Fund is a closed-ended fixed income mutual fund launched by Federated Investors, Inc. The fund is managed by Federated Investment Management Company. It invests in fixed income markets of United States. The fund primarily invests in tax-exempt municipal bonds of GO state, GO local, special tax, hospital, transportation, pre-refunded, senior care, water and sewer, education, electric and gas, and public power sectors. It benchmarks the performance of its portfolio against S&P Municipal Bond Index. Federated Premier Municipal Income Fund was formed on December 20, 2002 and is domiciled in United States.

Sector: Financial Services · Industry: Asset Management

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 26, 2026

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Basket-weighted haram holdings exceed 5% (100.0%)

Basket Composition

100% of basket screened

ETFs are baskets of many stocks. AAOIFI-aligned rule: basket is halal when haram weight is under 5%. The purification share is the weighted prohibited-income contribution of the underlying holdings.

100%

Halal0%

Doubtful0%

Not Halal100%

Unknown0%

Top Holdings

PUERTO RICO SALES TAX FINANCING CORPNot Halal1.92%INDIANAPOLIS LOCAL PUBLIC IMPROVEMENT BOND BANK (IN)Not Halal1.73%LOWER ALABAMA GAS DISTRICT (THE) (AL)Not Halal1.68%DENVER CITY AND COUNTY SCHOOL DISTRICT N.1 (CO)Not Halal1.47%OREGON (OR), STATE OFNot Halal1.43%ILLINOIS (IL), STATE OFNot Halal1.37%FORT BEND TEX INDPT SCH DISTNot Halal1.37%CLIFTON TEX HIGHER ED FIN CORPNot Halal1.37%ILLINOIS (IL), STATE OFNot Halal1.36%MIAMI-DADE (FL), COUNTY OFNot Halal1.35%

Fiscal: N/AData source: FMP-LOOKTHROUGH

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is Federated Hermes Premier Municipal Income Fund (FMN) halal to invest in?

Federated Hermes Premier Municipal Income Fund (FMN) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Federated Hermes Premier Municipal Income Fund get a F compliance rating?

Federated Hermes Premier Municipal Income Fund's compliance grade is determined by AAOIFI Standard 21 screening, a two-step process: (1) qualitative screen for prohibited business activities and (2) quantitative check of debt, interest deposits, and prohibited income ratios. Scroll up to see the detailed ratio breakdown.

What could change Federated Hermes Premier Municipal Income Fund's Shariah verdict?

Federated Hermes Premier Municipal Income Fund's verdict is recalculated whenever the fund rebalances or holdings change materially. If the haram-weight of underlying holdings crosses 5% (the AAOIFI threshold for fund look-through), the verdict will flip to Not Halal. HalalScreener rescreens ETFs at each rebalance cycle.

How often is Federated Hermes Premier Municipal Income Fund re-screened for Shariah compliance?

Federated Hermes Premier Municipal Income Fund (FMN) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Aug 26, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.