# EDGAR Filing Document

**Accession Number:** 0001587982
**File Stem:** 0001398344-23-005645
**Filing Date:** 2023-3
**Character Count:** 21376
**Document Hash:** ecdeb5929a8da27f94ad4e86d5356bfb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001398344-23-005645.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001398344-23-005645

**CONFORMED SUBMISSION TYPE**: 497K

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**EFFECTIVENESS DATE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Investment Managers Series Trust II
- **CENTRAL INDEX KEY:** 0001587982
- **IRS NUMBER:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 497K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-191476
- **FILM NUMBER:** 23711123

**BUSINESS ADDRESS:**
- **STREET 1:** 235 WEST GALENA STREET
- **CITY:** MILWAUKEE
- **STATE:** WI
- **ZIP:** 53212
- **BUSINESS PHONE:** 414-299-2295

**MAIL ADDRESS:**
- **STREET 1:** 235 WEST GALENA STREET
- **CITY:** MILWAUKEE
- **STATE:** WI
- **ZIP:** 53212

## Series and Classes Contracts Data

### The Diplomat Fund (Series ID: S000077375)

| Class ID   | Class Name        | Ticker Symbol   |
|:---|:---|:---|
| C000237757 | The Diplomat Fund | EMWIX           |

---

| | |
|:---|:---|
|  | **The Diplomat Fund**<br> **Ticker Symbol: EMWIX** |
| **Summary Prospectus** | **March 1, 2023** |

---

 

*Before you invest, you may want to review the Fund's prospectus, which contains more information about the Fund and its risks. You can find the Fund's Statutory Prospectus and Statement of Additional Information and other information about the Fund online at https://www.embassyfunds.com/the-diplomat-fund/. You may also obtain this information at no cost by calling 1-877-771-7731 or by sending an e-mail request to info@embassyfunds.com. The Fund's Prospectus and Statement of Additional Information, both dated March 1, 2023 as each may be amended or supplemented, are incorporated by reference into this Summary Prospectus.*

 

**<u>Investment Objective</u>**

The investment objective of The Diplomat Fund (the "Fund") is to seek total return.

**<u>Fees and Expenses of the Fund</u>**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees to financial intermediaries which are not reflected in the table and example below.

---

| | |
|:---|:---|
| **Shareholder Fees**<br> *(fees paid directly from your investment)* |  |
| Wire fee | $20 |
| Overnight check delivery fee | $25 |
| Retirement account fees (annual maintenance fee) | $15 |
| **Annual Fund Operating Expenses**<br> *(expenses that you pay each year as a percentage of the value of your investment)* |  |
| Management fees | &nbsp;&nbsp;&nbsp;0.90% |
| Distribution (Rule 12b-1) fees |  |
| Other expenses <sup>1</sup> | &nbsp;&nbsp;&nbsp;0.16% |
| **Total annual fund operating expenses** | &nbsp;&nbsp;&nbsp;1.06% |
| Fees waived and/or expenses reimbursed <sup>2</sup> | &nbsp;&nbsp;&nbsp;(0.06%) |
| **Total annual fund operating expenses after waiving fees and/or reimbursing expenses** <sup>2</sup> | &nbsp;&nbsp;&nbsp;1.00% |

---

<sup>1</sup> "Other expenses" have been estimated for the current fiscal year. Actual expenses may differ from estimates.

<sup>2</sup> The Fund's advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses (excluding any Rule 12b-1 fees, shareholder servicing fees, interest on borrowings other than commitment fees associated with borrowing arrangements, expenses incurred with respect to the acquisition and disposition of portfolio securities and the execution of portfolio transactions, brokerage commissions, dividend and interest expenses on short sales, acquired fund fees and expenses (as determined in accordance with SEC Form N-1A), other expenditures which are capitalized in accordance with generally accepted accounting principles, expenses incurred in connection with any merger or reorganization, and extraordinary expenses such as litigation expenses) do not exceed 1.00% of the average daily net assets of the Fund. This agreement is in effect until February 29, 2024, and it may be terminated before that date only by the Trust's Board of Trustees. The Fund's advisor is permitted to seek reimbursement from the Fund, subject to certain limitations, of fees waived or payments made to the Fund for a period ending three years after the date of the waiver or payment. This reimbursement may be requested from the Fund if the reimbursement will not cause the Fund's annual expense ratio to exceed the lesser of (a) the expense limitation in effect at the time such fees were waived or payments made, or (b) the expense limitation in effect at the time of the reimbursement.

**<u>Example</u>**

This example is intended to help you compare the costs of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The example reflects the Fund's contractual fee waiver and/or expense reimbursement only for the term of the contractual fee waiver and/or expense reimbursement.

Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | |
|:---|:---|
| **One Year** | **Three Years** |
| $102 | $331 |

---

**<u>Portfolio Turnover</u>**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the fiscal period September 13, 2022 (commencement of operations), through October 31, 2022, the Fund's portfolio turnover rate was 0% of the average value of its portfolio.

**<u>Principal Investment Strategies</u>**

Under normal circumstances, the Fund pursues its investment objective by investing primarily in debt securities of the U.S. government and interest rate futures contracts related to debt securities ("Interest Rate Futures"). The Fund will invest in a core portfolio consisting of U.S. Treasury securities, generally with maturities of 7 to 10 years (the "Core Portfolio"). As the time to maturity of the securities shortens over time, the Fund's sub-advisor, RichBrook Advisors, LP ("RichBrook" or the "Sub-Advisor"), will from time to time sell securities from the Core Portfolio and replace them with similar but longer-date U.S. Treasury securities in order to maintain the average maturity in the 7-to-10-year range.

The Fund will be managed based on a proprietary quantitative model that consists of a combination of macroeconomic, valuation and technical factors. This model is managed and maintained by Duration Capital (the "Portfolio Strategist") to predict the direction and extent of U.S. interest rate movements over an approximately 30-day period. Prices of fixed income securities generally move in the opposite direction of interest rates. Duration is a measure of the sensitivity of a fixed income security's price to a change in interest rates. Based on the model's output (*i.e.,* its predicted interest rate moves), and at the direction of the Fund's investment advisor, Embassy Asset Management LP (the "Advisor"), the Sub-Advisor will use Interest Rate Futures to increase or decrease the Fund's duration to a target level of duration generated by the model. For example, if the model predicts higher interest rates over the next 30-day period, it will revise its target duration to a lower number, and the Fund will sell Interest Rate Futures on the appropriate futures exchange in order to decrease the Fund's duration to a level that is in line with the new model target. The model may be changed without notice by the Portfolio Strategist. The Fund's Advisor retains discretion over the final implementation of the Fund's strategy, and the Fund's adjusted duration may differ from the duration determined by the model's output.

The Fund will employ limit orders on its positions in Interest Rate Futures to reduce downside volatility. A "limit order" is an order placed with a broker to buy or sell a prescribed number of bonds, contracts or shares at a specified price or better and is used to help control the Fund's portfolio exposures and trading costs. The Advisor will establish limits at which the futures positions will be unwound. These limits will be implemented by the Sub-Advisor. If these limits are triggered, the Fund will exit the Interest Rate Futures positions. In such a case the Core Portfolio will not be affected. New Interest Rate Futures positions will then be established based on the model's next output.

Because much of the trading within the Fund is in futures markets, the Fund will maintain an appropriate cash balance surplus to meet margin requirements. The cash portfolio will be invested on a short-term, highly liquid, basis so that the Fund may meet margin calls on the futures positions. These investments may include shorter term U.S. Government securities, short-term debt securities, money market instruments, cash and other cash equivalents.

The Fund may trade securities actively and this may lead to high portfolio turnover.

The Advisor or Sub-Advisor may sell all or a portion of a position of the Fund's portfolio holdings when, in the Advisor's opinion and in consultation with the Sub-Advisor, one or more of the following occurs, among other reasons: (1) the Fund's portfolio requires rebalancing; (2) the Advisor or Sub-Advisor identifies a more attractive investment opportunity; or (3) the Fund requires cash to meet redemption requests.

**<u>Principal Risks of Investing</u>**

Risk is inherent in all investing and you could lose money by investing in the Fund. The Fund is not designed to be a complete investment program and the Fund is not suitable as a short-term investment. The Fund is intended for long-term investors. A summary description of certain principal risks of investing in the Fund is set forth below. Before you decide whether to invest in the Fund, carefully consider these risk factors associated with investing in the Fund, which may cause investors to lose money. There can be no assurance that the Fund will achieve its investment objective.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Market Risk:*** The market price of a security or instrument may decline, sometimes rapidly
or unpredictably, due to general market conditions that are not specifically related to a particular issuer, company, or asset class such
as real or perceived adverse economic or political conditions throughout the world, changes in the general outlook for individual consumers
and borrowers, credit markets and corporate earnings, changes in interest or currency rates, or adverse investor sentiment generally.
In addition, local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health
issues, or other events could have a significant impact on a security or instrument. The market value of a security or instrument also
may decline because of factors that affect a particular industry or industries, such as labor shortages or increased production costs
and competitive conditions within an industry.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Fixed Income Securities Risk:*** The prices of fixed income securities respond to economic
developments, particularly interest rate changes, as well as to changes in an issuer's credit rating or market perceptions about
the creditworthiness of an issuer. Generally fixed income securities decrease in value if interest rates rise and increase in value if
interest rates fall, and longer-term and lower rated securities are more volatile than shorter-term and higher rated securities.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Derivatives Risk:*** Derivatives include instruments and contracts that are based on and valued
in relation to one or more underlying securities, financial benchmarks, indices, or other reference obligations or measures of value.
Using derivatives exposes the Fund to additional or heightened risks, including leverage risk, liquidity risk, valuation risk, market
risk, counterparty risk, and credit risk. Derivatives transactions can be highly illiquid and difficult to unwind or value, they can increase
Fund volatility, and changes in the value of a derivative held by the Fund may not correlate with the value of the underlying instrument
or the Fund's other investments. Many of the risks applicable to trading the instruments underlying derivatives are also applicable to
derivatives trading. However, derivatives are subject to additional risks such as operational risk, including settlement issues, and legal
risk, including that underlying documentation is incomplete or ambiguous. For derivatives that are required to be cleared by a regulated
clearinghouse, other risks may arise from the Fund's relationship with a brokerage firm through which it submits derivatives trades
for clearing, including in some cases from other clearing customers of the brokerage firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Futures Risk:*** The Fund's use of exchange-traded futures contracts exposes the Fund
to leverage and tracking risks because a small investment in futures contracts may produce large losses and futures contracts may not
be perfect substitutes for securities.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Leveraging Risk:*** Certain Fund transactions, such as entering into futures contracts, may
give rise to a form of leverage. Leverage can magnify the effects of changes in the value of the Fund's investments and make the
Fund more volatile. Leverage creates a risk of loss of value on a larger pool of assets than the Fund would otherwise have had, potentially
resulting in the loss of all assets. The Fund may also have to sell assets at inopportune times to satisfy its obligations in connection
with such transactions.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Interest Rate Risk:*** Generally fixed income securities decrease in value if interest rates
rise and increase in value if interest rates fall, with longer-term securities being more sensitive than shorter-term securities. For
example, the price of a security with a seven-year duration would be expected to drop by approximately 7% in response to a 1% increase
in interest rates. Generally, the longer the maturity and duration of a bond or fixed rate loan, the more sensitive it is to this risk. 
Falling interest rates also create the potential for a decline in the Fund's income. Changes in governmental policy, rising
inflation rates, and general economic developments, among other factors, could cause interest rates to increase and could have a substantial
and immediate effect on the values of the Fund's investments. In addition, a potential rise in interest rates may result in
periods of volatility and increased redemptions that might require the Fund to liquidate portfolio securities at disadvantageous prices
and times.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Model Risk:*** Like all quantitative strategies, the Portfolio Strategist's investment
model carries a risk that the model used might be based on one or more incorrect assumptions. Rapidly changing and unforeseen market dynamics
could also lead to a decrease in short term effectiveness of the Portfolio Strategist's model. No assurance can be given that the
Fund will be successful under ll or any market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Management and Strategy Risk:*** The value of your investment depends on the judgment of the
Advisor about the quality, relative yield, value or market trends affecting a particular security, issuer, sector or region, which may
prove to be incorrect.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Portfolio Turnover Risk:*** Active and frequent trading of the Fund's portfolio securities
may lead to higher transaction costs and may result in a greater number of taxable transactions than would otherwise be the case, which
could negatively affect the Fund's performance. A high rate of portfolio turnover is 100% or more.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Recent Market Events:*** Periods of market volatility may occur in response to market events
and other economic, political, and global macro factors. For example, in recent years the COVID-19 pandemic, the large expansion of government
deficits and debt as a result of government actions to mitigate the effects of the pandemic, Russia's invasion of Ukraine, and the
rise of inflation have resulted in extreme volatility in the global economy and in global financial markets. These and other similar events
could be prolonged and could adversely affect the value and liquidity of the Fund's investments, impair the Fund's ability
to satisfy redemption requests, and negatively impact the Fund's performance.

&nbsp;&nbsp;&nbsp;&nbsp;·  ***Limited Operating History:*** The
Fund is recently organized and has a limited operating history. As a result, prospective investors have a limited track record or history
on which to base their investment decisions.

&nbsp;&nbsp;&nbsp;&nbsp;•  ***Cybersecurity Risk:*** Cybersecurity incidents may allow an unauthorized party to gain access
to Fund assets, customer data (including private shareholder information), or proprietary information, or cause the Fund, the advisor,
the Sub-Advisor, and/or other service providers (including custodians, sub-custodians, transfer agents and financial intermediaries) to
suffer data breaches, data corruption or loss of operational functionality. In an extreme case, a shareholder's ability to exchange
or redeem Fund shares may be affected. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the
value of those securities could decline if the issuers experience cybersecurity incidents.

**<u>Performance</u>**

The Fund is new and does not have a full calendar year performance record to compare against other mutual funds or broad measures of securities market performance such as indices. Performance information will be available after the Fund has been in operation for one calendar year.

**<u>Investment Advisor and the Sub-Advisor</u>**

Embassy Asset Management LP is the Fund's Advisor.

RichBrook Advisors, LP is the Fund's Sub-Advisor.

**<u>Portfolio Managers</u>**

Andrew Ball and Vlad Kotlyarsky have been jointly and primarily responsible for the day-to-day management of the Fund's portfolio since its inception on September 7, 2022.

**<u>Purchase and Sale of Fund Shares</u>**

The Fund is generally sold to (i) institutional investors, including registered investment advisors (RIAs), and (ii) clients of such institutional investors. The minimum initial investment (which may be waived or reduced in certain circumstances) is $2,500. This minimum may be modified and/or applied in the aggregate for certain intermediaries that submit trades on behalf of underlying investors (e.g., registered investment advisors or benefit plans). Differences in the policies of different intermediaries may include different minimum investment amounts. There is no minimum for subsequent investments.

Fund shares are redeemable on any business day the New York Stock Exchange (the "NYSE") is open for business by written request or by telephone.

Investors may be charged a fee if they effect transactions through an intermediary, broker, or agent. The Fund has authorized one or more brokers to receive on its behalf purchase and redemption orders. Such brokers are authorized to designate other intermediaries to receive purchase and redemption orders on the Fund's behalf. The Fund will be deemed to have received a purchase or redemption order when an authorized broker or, if applicable, a broker's authorized designee, receives the order. Customer orders will be priced at the Fund's net asset value ("NAV") next computed after they are received by an authorized broker or the broker's authorized designee.

**<u>Tax Information</u>**

The Fund's distributions are generally taxable, and will ordinarily be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Shareholders investing through such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

**<u>Payments to Broker-Dealers and Other Financial Intermediaries</u>**

The Fund is not generally sold through financial intermediaries other than certain registered investment advisers, and no sales loads are charged to investors or paid to financial intermediaries. If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Advisor may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.