Company: RFMZ
Filing Date: 2025-03-31
Form Type: N-2/A
Source: 0001398344-25-006257
Chunk: 19

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-03-31
Form: N-2/A
Chunk 19
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 “Incorporation by Reference” below for more information.

INVESTMENT PHILOSOPHY AND PROCESS

The Adviser allocates the Fund’s assets between the Tactical Municipal Closed-End Fund Strategy and the Municipal Bond Income Strategy (as described above). The amount allocated to each of the principal strategies may change depending on the Adviser’s assessment of market risk, security valuations, market volatility, and the prospects for earning income and capital appreciation. See “Risks-Structural Risks-Multi-Manager Risk.”

Tactical Municipal Closed-End Fund Strategy.The Adviser considers a number of factors when selecting Underlying Funds, including fundamental and technical analysis to assess the relative risk and reward potential throughout the financial markets. The term “tactical” is used to indicate that the portion of the Fund’s Managed Assets allocated to this strategy that invests in CEFs to take advantage of pricing discrepancies in the CEF market.

In selecting CEFs, the Adviser opportunistically utilizes a combination of short-term and longer-term trading strategies to seek to derive value from the discount and premium spreads associated with CEFs by identifying pricing aberrations. The Adviser employs both a quantitative and qualitative approach in its selection of CEFs and has developed proprietary screening models and algorithms to trade CEFs. The Adviser’s mean reversion investing looks to capitalize on changes within the pricing of a CEF and, based upon its research and analysis, a view that it will revert to historical pricing. The Adviser employs the following trading strategies, among others:

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Statistical Analysis (Mean Reversion)

| ● | Using                                                                                              
 proprietary quantitative models, the Adviser seeks to identify CEFs that are trading at compelling 
 absolute and/or relative discounts.                                                                |

| ● | The                                                                                         
 Adviser will attempt to capitalize on the perceived mispricing if the Adviser believes that 
 the discount widening is irrational and expects the discount to narrow to longer-term mean  
 valuations.                                                                                 |

Corporate Actions

| ● | The                                                                                         
 Adviser pursues investments in CEFs that have announced, or the Adviser believes are likely 
 to announce, certain corporate actions that may drive value for their shareholders.         |

| ● | The                                                                                         
 Adviser has developed trading strategies that focus on CEF tender offers, rights offerings, 
 shareholder distributions, open-endings and liquidations.                                   |

Shareholder Activism

| ● | The                                                                                        
 Adviser assesses activism opportunities by determining a CEF’s susceptibility to dissident