Company: RFMZ
Filing Date: 2025-03-07
Form Type: N-CSRS
Source: 0001398344-25-005064
Chunk: 34

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-03-07
Form: N-CSRS
Chunk 34
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 Adviser (the “Supplemental Peer Group”). It was noted that the Fund had underperformed
(on both a NAV and market price basis) the Supplemental Peer Group median for the three-month, one-year, three-year and since inception
periods ended September 30, 2024. It was also noted that the Fund’s net management fee was above the Supplemental Peer Group median
and that the Fund’s total net expenses calculated as a percentage of net assets was above the Supplemental Peer Group median. The
Directors also reviewed the Fund’s fees relative to other funds managed by the Adviser. The Board, including the Independent Directors,
determined that the fees were reasonable given the characteristics of the Fund’s fee structure, unique investment strategy, the
capabilities of the Adviser, and the nature of the services provided to the Fund.

Nature, Extent and Quality of Services

As to the nature, extent and quality of the services
provided by the Adviser to the Fund, the Board considered that under the terms of the Advisory Agreement, the Adviser, subject to the
supervision of the Board, provides or arranges to be provided to the Fund such investment advice as the Adviser, in its discretion, deems
advisable and furnishes or arranges to be furnished a continuous investment program for the Fund consistent with the Fund’s investment
objective and policies. The Board reviewed the Adviser’s Form ADV, which was previously provided to the Board and that provided
details regarding the experience of each of the Adviser’s personnel. The Adviser also provided additional information regarding
its experience managing other investment accounts. Based on the foregoing information, the Board, including the Independent Directors,
concluded that the Adviser had provided quality services and would continue to do so for the Fund.

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RiverNorth Flexible Municipal Income Fund II, Inc.

Profitability and Other Benefits

As to the cost of the services provided and the
profits to be realized by the Adviser, the Board reviewed the Adviser’s estimates of its profitability and its financial condition.
The Board reviewed the Adviser’s financial statements and noted the Adviser’s financial condition is stable as income from
its asset management operations have contributed to higher revenues for the Adviser. The Board acknowledged the Adviser’s management
fees were in the same range as those charged to other funds to which the Adviser provides advisory or sub-advis