Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 47

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 47
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 Fund’s Managed Assets.

The Fund may also purchase and sell municipal
market data rate locks (“MMD Rate Locks”). An MMD Rate Lock permits the Fund to lock in a specified municipal interest rate
for a portion of its portfolio to preserve a return on a particular investment or a portion of its portfolio as a duration management
technique or to protect against any increase in the price of securities to be purchased at a later date.

RiverNorth Flexible Municipal Income Fund II, Inc.

In addition to the foregoing principal investment
strategies of the Fund, the Adviser also may allocate the Fund’s Managed Assets among cash and short-term investments. There are
no limits on the Fund’s portfolio turnover, and the Fund may buy and sell securities to take advantage of potential short-term trading
opportunities without regard to length of time and when the Adviser or Subadviser believes investment considerations warrant such action.
High portfolio turnover may result in the realization of net short-term capital gains by the Fund which, when distributed to Common Shareholders,
will be taxable as ordinary income. In addition, a higher portfolio turnover rate results in correspondingly greater brokerage commissions
and other transactional expenses that are borne by the Fund.

All percentage limitations are measured at the
time of investment and may be exceeded on a going-forward basis as a result of credit rating downgrades or market value fluctuations
of the Fund’s portfolio securities. Unless otherwise specified herein, the Fund may count its holdings in Underlying Funds towards
various guideline tests, including the 80% policy so long as the earnings on the underlying holdings of such Underlying Funds are exempt
from regular U.S. federal income taxes (but which may be includable in taxable income for purposes of the Federal alternative minimum
tax).

Unless otherwise specified, the investment policies
and limitations of the Fund are not considered to be fundamental by the Fund and can be changed without a vote of the Common Shareholders.
The Fund’s primary investment objective, 80% policy and certain investment restrictions specifically identified as such in the Fund’s
Statement of Additional Information are considered fundamental and may not be changed without the approval of the holders of a majority
of the outstanding voting securities of the Fund, as defined in the 1940 Act, which includes Common Shares and Preferred Shares, if any,
voting together as a single class, and the holders of the outstanding Preferred Shares, if any, voting as a single class.

Portfolio Composition

Set forth below is a description of the various
types of Municipal Bonds