Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 72

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 72
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 in certain markets, a fund may not be able to close out a transaction without incurring substantial losses. Although a fund’s use of futures and options transactions for hedging should tend to minimize the risk of loss due to a decline in the value of the hedged position, at the same time, it will tend to limit any potential gain to a fund that might result from an increase in value of the position.

Market Events Risks. The Fund may experience
increased volatility, illiquidity, or other potentially adverse effects in response to changing market conditions, inflation, changes
in interest rates, lack of liquidity in the bond or equity markets, volatility in the equity markets, market disruptions caused by local
or regional events such as war, acts of terrorism, the spread of infectious illness (including epidemics and pandemics) or other public
health issues, financial institution instability, trade disruption, recessions or other events or adverse investor sentiment or other
political, regulatory, economic and social developments, and developments that impact specific economic sectors, industries or segments
of the market. Additionally, from time to time, uncertainty regarding the status of negotiations in the U.S. government to increase the
statutory debt ceiling could impact the creditworthiness of the U.S. and could impact the liquidity of the U.S. government securities
markets and ultimately the Fund. These risks may be magnified if certain events or developments adversely interrupt the global supply
chain; in these and other circumstances, such risks might affect companies worldwide due to increasingly interconnected global economies
and financial markets.

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RiverNorth Flexible Municipal Income Fund II, Inc.

The COVID-19 pandemic has negatively affected
the worldwide economy, as well as the economies of individual countries, the financial health of individual companies and the market in
general in significant and unforeseen ways. On May 5, 2023, the World Health Organization declared the end of the global emergency status
for COVID-19. The United States subsequently ended the federal COVID-19 public health emergency declaration effective May 11, 2023. Although
vaccines for COVID-19 are widely available, it is unknown how long certain circumstances related to the pandemic will persist, whether
they will reoccur in the future, and what additional implications may follow from the pandemic. The impact of these events and other epidemics
or pandemics in the future could adversely affect the Fund’s performance.

The impairment