Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 2

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 2
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 years due to structural leverage, which was maintained near 40% throughout
the fiscal year. These characteristics reflect our core view that long-duration municipal exposure remains an important tool for delivering
tax-exempt income and future price recovery when rates eventually normalize.

| 2 | (888) 848-7569 | www.rivernorth.com |

RiverNorth Flexible Municipal Income Fund II, Inc.

The Fund maintained its level distribution policy
(“LDP”) during the year, with distributions currently set at 6.75% of the Fund’s December 31, 2024 NAV. We believe a
sustainable LDP can provide liquidity to shareholders at NAV and can play a significant role in keeping discounts relatively narrow.

Looking ahead, we believe the Fund is well positioned.
Municipal credit fundamentals remain healthy across the vast majority of the market, and the supply/demand dynamics remain favorable as
reinvestment needs outpace new issuance in many periods. If CEF valuations become less compelling, we may increase our allocation to actively
managed municipal bonds through MacKay. Alternatively, if discounts widen, RiverNorth can tactically allocate to secondary market funds
trading at attractive levels. This dynamic and complementary structure gives the Fund flexibility in evolving markets while maintaining
a core focus on long-term, tax-advantaged income generation.

We are pleased to provide you with the 2025 Annual
Report. Please visit www.rivernorth.com for additional information. We thank you for your continued investment and trust.

Respectfully,

RiverNorth Capital Management, LLC

Opinions and estimates offered constitute our judgement and are subject to change.

DEFINITIONS

U.S. Treasuries are seen as a good example
of a risk-free investment because they are backed by the “full faith and credit” of the U.S. government. Treasury securities
are divided into three primary categories according to the length of maturity. These are Treasury Bills, Treasury Bonds, and Treasury
Notes.

The U.S. Treasury yield curve is a line chart
that allows for the comparison of the yields of short-term Treasury bills and the yields of long-term Treasury notes and bonds.

Leverage, the use of borrowed money to invest,
is a strategy that can be employed by closed end funds in an effort to potentially increase income and enhance returns.

Duration is a measure of the sensitivity of
the price of a bond or other debt instrument to a change in interest rates. Duration is non-linear and accelerates as time to maturity
lessens.