Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 96

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 96
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. Certain investment teams
consist of Portfolio Managers, Research Analysts, and Traders, while certain other investment teams share Research Analysts and/or Traders.
MacKay Shields’ investment teams may compete with each other for the same investment opportunities and/or take contrary positions.
At times, two or more of MacKay Shields’ investment teams may jointly manage the assets of a single client portfolio (“Crossover
Mandate”). In such instances, the asset allocation decisions will be discussed amongst the various investment teams, but the day-to-day
investment decision-making process will typically be made independently by each team for the portion of the Crossover Mandate that team
is responsible for managing. Orders within an investment team will typically be aggregated or bunched to reduce the costs of the transactions.
Orders are typically not aggregated across investment teams even though there may be orders by separate investment teams to execute the
same instrument on the same trading day; provided, however, that orders for the same instrument are typically aggregated across investment
teams that are supported by a shared trading desk.

MacKay Shields’ clients have held, and it is expected
that in the future they will at times hold, different segments of the capital structure of the same issuer that have different priorities.
These investments create conflicts of interest, particularly because MacKay Shields can take certain actions for clients that can have
an adverse effect on other clients. For example, certain MacKay Shields clients may hold instruments that are senior or subordinated relative
to instruments of the same issuer held by other clients, and any action that the portfolio managers were to take on behalf of the issuer’s
senior instrument, for instance, could have an adverse effect on the issuer’s junior instrument held by other clients, and vice
versa, particularly in distressed or default situations. To the extent MacKay Shields or any of its employees were to serve on a formal
or informal creditor or similar committee on behalf of a client, such conflicts of interest may be exacerbated.

MacKay Shields engages in transactions and investment strategies
for certain clients that differ from the transactions and strategies executed on behalf of other clients, including clients that have
retained the services of the same investment team. MacKay Shields may make investments for certain clients that they conclude are inappropriate
for other clients. For instance, clients within one investment strategy may take short positions in the debt or equity instruments of
certain issuers, while at the same time those instruments or other instruments of that issuer are acquired or held long by clients in
another investment