Northern Lights Fund Trust Ii N-CSR Certified annual shareholder report (management investment company)

united states
securities and exchange commission
washington, d.c. 20549

form n-csr

certified shareholder report of registered management
investment companies

Investment Company Act file number 811-22549

Northern Lights Fund Trust II

(Exact name of registrant as specified in charter)

225 Pictoria Drive, Suite 450 Cincinnati, OH 45246

(Address of principal executive offices) (Zip code)

Richard Malinowski, Gemini Fund Services, LLC

80 Arkay Drive, Suite 110 Hauppauge, NY 11788

(Name and address of agent for service)

Registrant's telephone number, including area code: 631-470-2635

Date of fiscal year end: 2/28

Date of reporting period:2/29/20

Item 1. Reports to Stockholders.

WOA All Asset I

Class I shares: WOAIX

Annual Report

February 29, 2020

1-855-754-7935

Distributed by Northern Lights Distributors, LLC

Member FINRA

Dear Shareholders:

The WOA All Asset I (WOAIX) Fund (“the Fund”), is a global dynamic asset allocation strategy managed by WaterOak Advisors (WOA). The Fund is utilized exclusively for private clients of WOA. The strategy makes tactical investment decisions among four broad asset classes (global equities, global fixed income, commodities and currencies/cash). As well, the strategy makes tactical decisions among specific countries and regions within the global equity and global fixed income buckets, implemented with liquid and low cost exchange traded funds (ETF’s). The strategy is based on a quantitative model that incorporates three broad measures; liquidity, value and momentum. Additionally, the strategy is unconstrained and has the potential to add value in a variety of different market environments.

WOA believes that the WOA All Asset Fund is a distinct strategy that is most efficiently delivered to our private clients via a pooled vehicle such as WOAIX. It would potentially be cost prohibitive to try to deliver a tactical allocation strategy of this kind within each and every one of our client accounts. It is the opinion of WOA that the firm’s core managed portfolios consisting of stocks, bonds and alternatives are significantly enhanced by the tactical overlay the Fund provides, affording a client the potential to hold more risk assets during a rising market and less during a declining market.

Operationally, WOAIX represents a portion of virtually every managed portfolio in WOA’s wealth management practice, with varying percentages in each portfolio based on the respective risk level of each individual client. WOAIX was designed for WOA’s private clients and any outside advisors/investors must be approved to use the Fund. Institutional third party research, coupled with WOA’s in house investment expertise, has afforded our clients the ability to have access to a form of active management that they would otherwise be unable to access, with efficient implementation via the pooled WOAIX vehicle. Due to the fact that we waive our wealth advisory fee in clients’ accounts on any assets allocated to the Fund, the structure allows our clients to receive active management with very attractive all in fees. WOAIX was made available to clients of WOA via custodians TD Ameritrade, Fidelity Investments and Charles Schwab.

	Pre-Strategy	Post-Strategy		Since
	Change	Change		Inception**
	04/24/12 –	09/01/13 –	03/01/19 –	4/24/12 –
	08/31/13	02/29/20	02/29/20	2/29/20
WOAIX	1.18%	4.45%	-0.32%	3.88%
CPI + 3%*	3.49%
MSCI World (ACWI)*		7.50%	3.89%	8.31%
60% ACWI/ 40% GblAgg		5.61%	5.77%	5.84%

* Note: The benchmark changed on 09/01/13 (date of strategy change) to the MSCI ACWI NR. Benchmark for prior strategy was CPI + 3%.

** From inception of the Fund in April 24, 2012 to August 31, 2013, WOAIX employed a long-only strategy that involved risk budgeting or risk parity. The benchmark was CPI+3% during this time frame. Effective September 2013, WOAIX transitioned to the new strategy, which is a global tactical allocation strategy. The benchmark changed to MSCI ACWI as a result. The “Since Inception” performance information, consolidating the prior strategy and current strategy, is required to be shown. That said, the ACWI (World Stocks) is not reflective of any performance periods prior to 08/31/13 and therefore the all in figure is not reflective of an accurate benchmark since inception.

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Before March 1, 2019, the Fund’s primary benchmark was the MSCI All Country World Stock Index (ACWI). Broadly speaking, the ACWI index consists of approximately half U.S. stocks and half international stocks. The main drawback of the MSCI ACWI Index as a benchmark is the lack of exposure to fixed income. The Fund has maintained a strategic exposure to fixed income since the change of the strategy in 2013. Since March 1, 2019, the Fund’s primary benchmark is a blended benchmark with a 60% allocation to the MSCI All Country World Index and a 40% allocation to the Bloomberg Barclays Global Aggregate Bond Index.

The Fund is a global tactical strategy, with a neutral balanced allocation of 60% global equities, and 40% global fixed income (including cash), and therefore we expect to underperform when global equities rise rapidly in a short term period (as opposed to a full market cycle). The approximate average allocation during the past year per asset class was 43.8% to global equities and 30.9% to global bonds and 25.3% to cash. Within the equity allocation, on average, 26.1% was allocated to North American equity, 12.0% to international equity, 1.2% to Australasia, and 4.6% to emerging markets. The Fund underperformed its benchmark by 4.21% during the fiscal year. The underperformance can be attributed to the period from September thru November. During this time, the Fund tactically increased its allocation to fixed income and cash, while maintaining an average of 33.3% in global equities while the equity markets rallied 7.46% and Global bonds slid -1.11%.

The Fund ranked in the 52^nd percentile among its tactical peer group in the Morningstar US Tactical Allocation category for the time period of September 1, 2013 to February 29, 2020, out of 175 funds based on annualized returns. The Fund was ranked in the 76th percentile for the 1-year period ending February 29, 2020 out of 244 funds. In addition, the Fund also has one of the lowest fees in the category since it is only available to WaterOak’s private wealth clients. The net expense ratio for the Fund is 1.38% compared with the peer group’s average of 1.65%. As stated earlier, WOA waives the traditional investment advisory fee in clients’ accounts on any assets allocated to the Fund. This advisory fee waiver is not accounted for in the Fund’s performance for the Morningstar Category relative ranking or the performance against the all equity global index.

In addition to updating the benchmark, another change to the Fund going forward is that WOA was approved to remove the 12b-1 fee as of March 1^st, 2019. WOA believes removal of the 12b-1 fee is beneficial to existing shareholders of the Fund, prospective clients, and also to WOA because (1) the net expense ratio was reduced by 3 basis points, (2) the Fund is more in line with its peer group, and (3) it alleviates any negative connotations typically associated with 12b-1 fees.

Growing turmoil from the spread of the coronavirus, and the potential for an enduring and significant adverse impact on global economies, have driven a sharp increase in volatility across markets and a strong flight to quality. The Adviser will continue to monitor the evolving situation and its impact on the Fund closely. As the news and impact of coronavirus continues to evolve, we wanted to share with you what we are doing to ensure the safety and well-being of our clients and employees, as well as their families. We are actively reviewing the latest reports and recommendations from the Centers for Disease Control (CDC), the World Health Organization (WHO) and the U.S. State Department. All of our employees are now working remotely to comply with local laws. We are able to maintain our business operations without

2

disruption to our clients. Having our firm located in Central Florida has allowed us to test our ability to work remotely and still serve our clients. Over the past 3 years we have tested our Business Continuity Plan with numerous hurricanes and a tropical storm, and in each instance, we have remained fully operational before, during and following each storm. We remain committed to being here for our clients. Thank you for being a shareholder of the WOA All Asset Fund.

Sincerely,

WaterOak Advisors

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Long only: The purchase of a security such as a stock, commodity, or currency, with the expectation that the asset will appreciate in value.

CPI + 3%: Consumer Price Index + 3%: The CPI is an index that measures changes in the cost of a set of goods and services, typically housing, electricity, food, & transportation. 3% (annualized) is added to the CPI number and the result was used as the benchmark to measure WOAIX against.

MSCI All Country World Stock Index (ACWI): MSCI ACWI captures large and mid cap representation across 23 Developed Markets (DM) and 21 Emerging Markets (EM) countries*. With 2,433 constituents, the index covers approximately 85% of the global investable equity opportunity set.

* from msci.com

Bloomberg Barclays Global Aggregate Bond Index:The Bloomberg Barclays Global Aggregate Bond Index is a flagship measure of global investment grade debt from twenty-four local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.*

* from Bloomberg

Risk Budgeting / Risk Parity: The process of identifying, quantifying, & distributing risk throughout a portfolio’s asset classes. Risk parity focuses on the allocation of risk evenly among asset classes, with the goal to realize the same level of returns while taking less risk, or to realize better returns taking on the same level of risk than a traditional asset allocation strategy.

© 2020 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

2159-NLD-4/22/2020

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WOA All Asset I

PORTFOLIO REVIEW (Unaudited)

February 29, 2020

The Portfolio’s performance figures* for the periods ended February 29, 2020, as compared to its benchmark:

		Annualized	Annualized
	One Year	Five Year	Since Inception**
WOA All Asset I Fund - Class I	(0.32)%	3.07%	3.88%
MSCI All Country World Index Net (USD)	3.89%	5.55%	8.23%

* The performance data quoted here represents past performance. The performance comparison includes reinvestment of all dividends and capital gains. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Performance figures for periods greater than 1 year are annualized. The Fund’s total annual operating expenses are 1.38% for Class I shares per the June 28, 2019 prospectus. For performance information current to the most recent month-end, please call toll-free 1-855-754-7935.

** Inception date is April 24, 2012.

The MSCI All Country World Index Net (USD) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 47 country indexes comprising 23 developed and 24 emerging market country indexes. Investors cannot invest directly in an index or benchmark.

Comparison of the Change in Value of a $10,000 Investment

The Fund’s Top Asset Classes are as follows:

Holdings by Asset Class	% of Net Assets
Equity Funds - ETFs		54.8	%
Debt Funds - ETFs		42.6	%
Mutual Fund - Debt Fund		1.3	%
Other Assets In Excess of Liabilities		1.3	%
		100.0	%

Please refer to the Portfolio of Investments in this report for a detailed listing of the Fund’s holdings.

5

WOA All Asset I

PORTFOLIO OF INVESTMENTS

February 29, 2020

Shares			Value
		EXCHANGE TRADED FUNDS - 97.4%
		DEBT FUNDS - 42.6%
	337,765	iShares 1-3 Year Treasury Bond ETF	$	28,956,593
	130,280	iShares 7-10 Year Treasury Bond ETF		15,276,633
	928,597	Vanguard Total International Bond ETF		53,849,340
				98,082,566
		EQUITY FUNDS - 54.8%
	49,676	iShares Latin America 40 ETF		1,389,934
	79,604	iShares MSCI Australia ETF		1,601,632
	82,977	iShares MSCI Canada ETF		2,289,335
	39,621	iShares MSCI Emerging Markets ETF		1,605,443
	122,361	iShares MSCI France ETF		3,539,904
	131,785	iShares MSCI Germany ETF		3,455,403
	32,752	iShares MSCI Italy ETF		892,165
	112,661	iShares MSCI Japan ETF		5,966,527
	40,376	iShares MSCI Netherlands ETF		1,229,045
	4,838	iShares MSCI New Zealand ETF		255,785
	44,533	iShares MSCI Spain ETF		1,170,773
	78,651	iShares MSCI Sweden ETF		2,389,417
	164,906	iShares MSCI Switzerland ETF		6,246,639
	157,177	iShares MSCI United Kingdom ETF		4,605,286
	106,922	SPDR S&P Emerging Asia Pacific ETF		10,268,639
	204,425	Vanguard S&P 500 ETF		55,550,450
	159,299	Vanguard Small-Cap ETF		23,647,937
				126,104,314
		TOTAL EXCHANGE TRADED FUNDS (Cost $216,149,415)		224,186,880
		MUTUAL FUND - 1.3%
		DEBT FUND - 1.3%
	82,047	Vanguard Total International Bond Index Fund - Institutional Shares (Cost $2,572,017)		2,854,428
		TOTAL INVESTMENTS - 98.7% (Cost $218,721,432)	$	227,041,308
		OTHER ASSETS IN EXCESS OF LIABILITIES - 1.3%		3,091,393
		NET ASSETS - 100.0%	$	230,132,701

ETF - Exchange Traded Fund

See accompanying notes to financial statements.

6

WOA All Asset I

STATEMENT OF ASSETS AND LIABILITIES

February 29, 2020

ASSETS
Investment in securities at value (identified cost $218,721,432)	$	227,041,308
Receivable for securities sold		40,651,919
Receivable for fund shares sold		1,560,079
Dividends and interest receivable		9,778
Prepaid expenses and other assets		25,658
TOTAL ASSETS		269,288,742
LIABILITIES
Due to Custodian		1,350,030
Payable for investments purchased		35,101,061
Investment advisory fees payable		193,790
Payable for Fund shares repurchased		2,450,226
Payable to related parties		34,950
Accrued expenses and other liabilities		25,984
TOTAL LIABILITIES		39,156,041
NET ASSETS	$	230,132,701
Net Assets Consist Of:
Paid in capital	$	227,547,198
Accumulated earnings		2,585,503
NET ASSETS	$	230,132,701
Net Asset Value Per Share:
Class I Shares:
Net Assets	$	230,132,701
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized)		20,696,221
Net asset value (Net Assets ÷ Shares Outstanding), offering price and redemption price per share	$	11.12

See accompanying notes to financial statements.

7

WOA All Asset I

STATEMENT OF OPERATIONS

For the Year Ended February 29, 2020

INVESTMENT INCOME
Dividends	$	5,565,339
Interest		64,252
TOTAL INVESTMENT INCOME		5,629,591
EXPENSES
Investment advisory fees		2,531,719
Distribution (12b-1) fees:
Class I		24,081
Administrative services fees		162,198
Legal fees		48,960
Accounting services fees		43,992
Custodian fees		33,376
Transfer agent fees		30,464
Trustees fees and expenses		29,134
Compliance officer fees		25,532
Insurance expense		19,957
Audit fees		17,416
Registration fees		17,126
Third party administrative servicing fees		10,556
Printing and postage expenses		10,046
Other expenses		21,896
TOTAL EXPENSES		3,026,453
NET INVESTMENT INCOME		2,603,138
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from security transactions		3,566,314
Net change in unrealized depreciation on investments		(7,355,177	)
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS		(3,788,863	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(1,185,725	)

See accompanying notes to financial statements.

8

WOA All Asset I

STATEMENTS OF CHANGES IN NET ASSETS

	For The			For The
	Year Ended			Year Ended
	February 29, 2020			February 28, 2019
FROM OPERATIONS
Net investment income	$	2,603,138		$	2,932,760
Net realized gain from security transactions		3,566,314			7,273,671
Net change in unrealized depreciation of investments		(7,355,177	)		(5,025,218	)
Net increase (decrease) in net assets resulting from operations		(1,185,725	)		5,181,213
DISTRIBUTIONS TO SHAREHOLDERS
Total distributions paid
Class I		(17,102,079	)		(4,738,226	)
Net decrease in net assets resulting from distributions to shareholders		(17,102,079	)		(4,738,226	)
FROM SHARES OF BENEFICIAL INTEREST
Proceeds from shares sold:
Class I		120,533,272			52,988,193
Net asset value of shares issued in reinvestment of distributions:
Class I		3,288,684			631,442
Payments for shares redeemed:
Class I		(112,096,555	)		(49,534,700	)
Net increase in net assets resulting from shares of beneficial interest		11,725,401			4,084,935
TOTAL INCREASE (DECREASE) IN NET ASSETS		(6,562,403	)		4,527,922
NET ASSETS
Beginning of Year		236,695,104			232,167,182
End of Year	$	230,132,701		$	236,695,104
SHARE ACTIVITY
Class I:
Shares sold		9,981,978			4,468,010
Shares reinvested		276,825			55,438
Shares redeemed		(9,379,693	)		(4,209,816	)
Net increase in shares of beneficial interest outstanding		879,110			313,632

See accompanying notes to financial statements.

9

WOA All Asset I

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Year

	For The			For The			For The			For The			For The
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	February 29, 2020			February 28, 2019			February 28, 2018			February 28, 2017			February 29, 2016
Net asset value, beginning of year	$	11.94		$	11.90		$	10.93		$	9.67		$	10.84
Activity from investment operations:
Net investment income (1)(4)		0.13			0.14			0.09			0.09			0.08
Net realized and unrealized gain (loss) on investments		(0.15	)		0.12			1.15			1.25			(1.17	)
Total from investment operations		(0.02	)		0.26			1.24			1.34			(1.09	)
Less distributions from:
Net investment income		(0.17	)		(0.12	)		(0.06	)		(0.08	)		(0.08	)
Net realized gains		(0.63	)		(0.10	)		(0.21	)		—			—
Total distributions		(0.80	)		(0.22	)		(0.27	)		(0.08	)		(0.08	)
Net asset value, end of year	$	11.12		$	11.94		$	11.90		$	10.93		$	9.67
Total return (2)		(0.59	)% (5)		2.30	%		11.39	%		13.87	%		(10.06	)%
Net assets, at end of year (000s)	$	230,133		$	236,695		$	232,167		$	149,262		$	121,707
Ratio of net expenses to average net assets (3)		1.20	%		1.20	%		1.21	%		1.25	%		1.27	%
Ratio of net investment income to average net assets (3)(4)		1.03	%		1.19	%		0.80	%		0.83	%		0.80	%
Portfolio Turnover Rate		285	%		139	%		75	%		162	%		176	%

(1) Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the year.

(2) Total returns are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distributions, if any. Total returns for periods less than one year are not annualized.

(3) Does not include the expenses of other investment companies in which the Fund invests.

(4) Recognition of net investment income by the Fund is affected by the timing of declaration of dividends by the underlying investment companies in which the Fund invests.

(5) Includes adjustments in accordance with accounting principles generally accepted in the United States and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions.

See accompanying notes to financial statements.

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WOA All Asset I

NOTES TO FINANCIAL STATEMENTS

February 29, 2020

1. ORGANIZATION

The WOA All Asset I Fund (the “Fund”) is a diversified series of shares of beneficial interest of Northern Lights Fund Trust II (the “Trust”), a statutory trust organized under the laws of the State of Delaware on August 26, 2010, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Fund seeks maximum total returns, which consists of capital appreciation and current income. The Fund commenced operations on April 24, 2012.

The Fund currently offers one class of shares, the Class I shares. Class I shares are offered at net asset value without an initial sales charge.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies” including FASB Accounting Standard Update “ASU” 2013-08.

Security Valuation –Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the primary exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale such securities shall be valued at the mean between the current bid and ask prices on the day of valuation. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value.

Valuation of Fund of Funds– The Fund may invest in portfolios of open-end or closed-end investment companies (the “Underlying Funds”). The Underlying Funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value to the methods established by the board of directors of the Underlying Funds.

A Fund may hold securities, such as private investments, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued using the “fair value” procedures approved by the Trusts’ Board of Trustees (the “Board”). The Board has delegated execution of these procedures to a fair value team composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) Adviser. The team may

11

WOA All Asset I

NOTES TO FINANCIAL STATEMENTS (Continued)

February 29, 2020

also enlist third party consultants such as a valuation specialist at a public accounting firm, valuation consultant or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value. The Board has also engaged a third-party valuation firm to attend valuation meetings held by the Trust, review minutes of such meetings and report to the Board on a quarterly basis. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.

Fair Valuation Process –As noted above, the fair value team is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) adviser. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source), (ii) securities for which, in the judgment of the adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause the adviser to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on which they are traded, but prior to a Fund’s calculation of its net asset values. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private investments or non-traded securities are valued via inputs from the adviser based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the adviser is unable to obtain a current bid from such independent dealers or other independent parties, the fair value team shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Funds’ holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.

12

WOA All Asset I

NOTES TO FINANCIAL STATEMENTS (Continued)

February 29, 2020

The Fund utilizes various methods to measure fair value of all of their investments on a recurring basis. GAAP establishes the hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access.

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of February 29, 2020 for the Fund’s assets and liabilities measured at fair value:

Assets*	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	224,186,880	$	—	$	—	$	224,186,880
Mutual Fund		2,854,428		—		—		2,854,428
Total	$	227,041,308	$	—	$	—	$	227,041,308

The Fund did not hold any Level 3 securities during the period.

* Please refer to the Portfolio of Investments for industry classifications.

13

WOA All Asset I

NOTES TO FINANCIAL STATEMENTS (Continued)

February 29, 2020

Security Transactions and Related Income – Security transactions are accounted for on trade date. Interest income is recognized on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

Dividends and Distributions to Shareholders– Dividends from net investment income, if any, are declared and paid annually. Distributable net realized capital gains, if any, are declared and distributed annually in December. Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions to shareholders are recorded on ex-dividend date.

Federal Income Taxes –The Fund intends to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to their shareholders. Therefore, no provision for Federal income tax is required. The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years ended February 28, 2017 to February 28, 2019, or expected to be taken in the Fund’s February 29, 2020 year-end tax return. The Fund has identified its major tax jurisdictions as U.S. Federal and Ohio, however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

Exchange Traded Funds –The Fund may invest in exchange traded funds (“ETFs”). ETFs are a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. A Fund may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.

Expenses –Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses, which are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable (as determined by the Board), taking into consideration the nature and type of expense and the relative sizes of the fund in the Trust.

14

WOA All Asset I

NOTES TO FINANCIAL STATEMENTS (Continued)

February 29, 2020

Indemnification –The Trust indemnifies its officers and trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnities. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be remote.

3. INVESTMENT TRANSACTIONS

For the year ended February 29, 2020, cost of purchases and proceeds from sales of portfolio securities, other than short-term investments, amounted to $696,155,298 and $701,239,777 respectively.

4. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES

Water Oak Advisors, LLC (the “Fund Manager”) serves as the Fund’s Investment Adviser (the “Adviser”).

Pursuant to an Advisory Agreement with the Fund, the Adviser, under the oversight of the Board, directs the daily operations of the Fund and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Adviser, the Fund pays the Adviser a management fee, computed and accrued daily and paid monthly, at an annual rate of 1.00% of average daily net assets. For the year ended February 29, 2020, the Fund incurred $2,531,719 in advisory fees.

Pursuant to a written contract (the “Waiver Agreement”), the Adviser has agreed, at least until June 30, 2021, to waive a portion of its advisory fee and has agreed to reimburse the Fund for other expenses to the extent necessary so that the total expenses incurred by the Funds (excluding taxes, leverage interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, dividend expense on securities sold short, or extraordinary expenses, such as litigation, not incurred in the ordinary course of the Fund’s business) do not exceed 1.50%.

If the Adviser waives any fee or reimburses any expenses pursuant to the Waiver Agreement, and any Funds operating expenses are subsequently lower than their respective expense limitation, the Adviser shall be entitled to reimbursement by the Fund(s) provided that such reimbursement does not cause that Fund’s operating expenses to exceed the respective expense limitation. If any Fund’s operating expenses subsequently exceed the respective expense limitation, the reimbursements for such Fund shall be suspended. The Adviser may seek reimbursement only for expenses waived or paid by it during the three fiscal years prior to such reimbursement; provided, however, that such expenses may only be reimbursed to the extent they were waived or paid after the date of the Waiver Agreement (or any similar agreement). The Board may terminate this expense reimbursement arrangement at any time.

15

WOA All Asset I

NOTES TO FINANCIAL STATEMENTS (Continued)

February 29, 2020

As of February 29, 2020, there were no previously waived fees or reimbursed expenses available for recapture.

Distributor –The Board has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (the “Plan”). The Plan provides that a monthly service and/or distribution fee is calculated by the Fund at an annual rate of up to 0.10% of the average daily net assets of the Fund’s Class I shares. Currently, the Fund’s Board of Trustees has set the 12b-1 fee level at 0.00% of the Fund’s Class I shares average daily net assets. The Fund will give Class I shareholders 30 days’ prior written notice before raising the distribution fee under the 12b-1 Plan. Prior to June 28, 2019, the distribution and shareholder servicing fee had been set at 0.03% of the Fund’s average daily net assets annually. The Fund will pay Northern Lights Distributors, LLC (the “Distributor”), to provide compensation for ongoing distribution-related activities or services and/or maintenance of the Fund’s shareholder accounts, not otherwise required to be provided by the Adviser. The Plan is a compensation plan, which means that compensation is provided regardless of 12b-1 expenses incurred. The Distributor acts as the Fund’s principal underwriter in a continuous public offering of the Fund’s shares. For the year ended February 29, 2020, the Fund incurred distribution fees of $24,081 for Class I shares.

In addition, certain affiliates of the Distributor provide services to the Fund as follows:

Gemini Fund Services, LLC (“GFS”) – GFS, an affiliate of the Distributor, provides administration, fund accounting, and transfer agent services to the Trust. Pursuant to separate servicing agreements with GFS, the Fund pays GFS customary fees for providing administration, fund accounting and transfer agent services to the Fund. Certain officers of the Trust are also officers of GFS, and are not paid any fees directly by the Trust for serving in such capacities.

Northern Lights Compliance Services, LLC(“NLCS”) – NLCS, an affiliate of GFS and the Distributor, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Funds.

Blu Giant, LLC(“Blu Giant”) – Blu Giant, an affiliate of GFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Fund on an ad -hoc basis. For the provision of these services, Blu Giant receives customary fees from the Fund.

Effective February 1, 2019, NorthStar Financial Services Group, LLC, the parent company of GFS and its affiliated companies including NLD, NLCS and Blu Giant (collectively, the “Gemini Companies”), sold its interest in the Gemini Companies to a third party private equity firm that contemporaneously acquired Ultimus Fund Solutions, LLC (an independent mutual fund administration firm) and its affiliates (collectively, the “Ultimus Companies”). As a result of these separate transactions, the Gemini Companies and the Ultimus Companies are now indirectly owned through a common parent entity, The Ultimus Group, LLC.

16

WOA All Asset I

NOTES TO FINANCIAL STATEMENTS (Continued)

February 29, 2020

5. DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

The tax character of distributions paid during the following years was as follows:

	Fiscal Year Ended		Fiscal Year Ended
	February 29, 2020		February 28, 2019
Ordinary Income	$	8,963,215	$	5,056,628
Long-Term Capital Gain		8,138,864		575,236
	$	17,102,079	$	5,631,864

As of February 29, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed		Undistributed		Post October Loss			Capital Loss		Other		Unrealized		Total
Ordinary		Long-Term		and			Carry		Book/Tax		Appreciation/		Accumulated
Income		Gains		Late Year Loss			Forwards		Differences		(Depreciation)		Earnings/(Deficits)
$	—	$	—	$	(503,827	)	$	—	$	—	$	3,089,330	$	2,585,503

The difference between book basis and tax basis undistributed net investment loss, accumulated net realized loss, and unrealized appreciation from investments is primarily attributable to the tax deferral of losses on wash sales.

Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Fund incurred and elected to defer such late year losses of $377,783.

Capital losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Fund incurred and elected to defer such capital losses of $126,044.

Permanent book and tax differences, primarily attributable to the reclass of Fund distributions and tax adjustments for non-deductible expenses resulted in reclassifications for the Fund for the fiscal year ended February 29, 2020 as follows:

Paid In			Accumulated
Capital			Earnings/(Losses)
$	(82,846	)	$	82,846

17

WOA All Asset I

NOTES TO FINANCIAL STATEMENTS (Continued)

February 29, 2020

6. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS

		Gross Unrealized		Gross Unrealized			Net Unrealized
Tax Cost		Appreciation		Depreciation			Appreciation
$	223,951,978	$	9,236,334	$	(6,147,004	)	$	3,089,330

7. SUBSEQUENT EVENTS

Subsequent events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees
of Northern Lights Fund Trust II and
Shareholders of WOA All Asset I Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of WOA All Asset I Fund (the “Fund”), a series of Northern Lights Fund Trust II, including the portfolio of investments, as of February 29, 2020, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of February 29, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the Fund’s auditor since 2012.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of February 29, 2020 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania
April 29, 2020

19

WOA All Asset I

EXPENSE EXAMPLES (Unaudited)

February 29, 2020

As a shareholder of WOA All Asset I, you incur ongoing costs, including management fees, distribution and/or service (12b-1 fees) fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note, the expenses shown in the tables are meant to highlight ongoing costs only and do not reflect any transactional costs.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2019 through February 29, 2020.

Actual Expenses

The “Actual Expenses” line in the table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The “Hypothetical” line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or redemption fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning	Ending	Expenses Paid	Expense Ratio
	Account Value	Account Value	During Period*	During Period**
	9/1/19	2/29/20	9/1/19 - 2/29/20	9/1/19 - 2/29/20
Actual - Class I	$1,000.00	$966.80	$5.87	1.20%
	Beginning	Ending	Expenses Paid	Expense Ratio
	Account Value	Account Value	During Period*	During Period**
	9/1/19	2/29/20	9/1/19 - 2/29/20	9/1/19 - 2/29/20
Hypothetical - Class I (5% return before expenses)	$1,000.00	$1,018.90	$6.02	1.20%

* Expenses are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the period (182) divided by the number of days in the fiscal year (366).

** Annualized.

20

FACTORS CONSIDERED BY THE TRUSTEES IN APPROVAL OF THE RENEWAL OF AN INVESTMENT ADVISORY AGREEMENT

At a Regular meeting (the “Meeting”) of the Board of Trustees (the “Board”) of Northern Lights Fund Trust II (the “Trust”) held on January 22-23, 2020, the Board, including the disinterested Trustees (the “Independent Trustees”), considered the renewal of the Investment Advisory Agreement between the Trust, on behalf of WOA All Asset I (“WOA All Asset”) and Water Oak Advisors, LLC (“Water Oak”) (the “WOA Advisory Agreement”).

Based on their evaluation of the information provided by Water Oak, in conjunction with the WOA All Asset’s other service providers, the Board, by a unanimous vote (including a separate vote of the Independent Trustees), approved the renewal of the WOA Advisory Agreement with respect to WOA All Asset.

In advance of the Meeting, the Board requested and received materials to assist them in considering the WOA Advisory Agreement. The materials provided contained information with respect to the factors enumerated below, including the WOA Advisory Agreement, a memorandum prepared by the Trust’s outside legal counsel discussing in detail the Trustees’ fiduciary obligations and the factors they should assess in considering the continuation of the WOA Advisory Agreement and comparative information relating to the advisory fee and other expenses of WOA All Asset. The materials also included due diligence materials relating to Water Oak (including due diligence questionnaires completed by Water Oak, select financial information of Water Oak, bibliographic information regarding Water Oak’s key management and investment advisory personnel, and comparative fee information relating to WOA All Asset) and other pertinent information. At the Meeting, the Independent Trustees were advised by counsel that is experienced in Investment Company Act of 1940 matters and that is independent of fund management and met with such counsel separately from fund management.

The Board reviewed and discussed the written materials that were provided in advance of the Meeting and deliberated on the renewal of the WOA Advisory Agreement. The Board relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the WOA Advisory Agreement and the weight to be given to each such factor. The conclusions reached by the Board were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Moreover, each Trustee may have afforded different weight to the various factors in reaching his conclusions with respect to the WOA Advisory Agreement. In considering the renewal of the WOA Advisory Agreement, the Board reviewed and analyzed various factors that they determined were relevant, including the factors enumerated below.

Nature, Extent and Quality of Services. The Board reviewed materials provided by Water Oak related to the proposed renewal of the WOA Advisory Agreement, including its ADV, a description of the manner in which investment decisions are made and executed, and a review of the professional personnel performing services for Water Oak, including the team of individuals that primarily monitors and executes the investment process. The Board discussed the extent of Water Oaks research capabilities, the quality of Water Oak’s compliance infrastructure and the experience of its fund management personnel. Additionally, the Board received satisfactory responses from the representatives of Water Oak with respect to a series of important questions, including: whether Water Oak was involved in any lawsuits or pending regulatory actions; whether the management of other accounts would conflict with its management of WOA All Asset; and whether there are procedures in place to adequately allocate trades among its respective clients and whether Water Oak’s CCO had processes in place to review the portfolio managers’ performance of their duties to ensure compliance under Water Oak’s compliance program. The Board reviewed the information provided on the practices for monitoring compliance with Water Oak’s investment limitations and discussed Water Oak’s compliance program with the CCO of the Trust. The Board noted that the CCO of the Trust continued to represent that Water Oak’s policies and procedures were reasonably designed to prevent violations of

21

applicable federal securities laws. The Board also noted Water Oak’s representation that the prospectus and statement of additional information for WOA All Asset accurately describe the investment strategies of WOA All Asset. The Board then reviewed the capitalization of Water Oak based on financial information provided, and representations made, by Water Oak and its representatives, and concluded that Water Oak was sufficiently well-capitalized, or its principals had the ability to make additional contributions in order to meet its obligations to WOA All Asset. The Board noted that WOA All Asset was used only for Water Oaks’ own advisory clients and that Water Oak used third party research signals received monthly to assist in implementing WOA All Asset’s investment objectives. Additionally, the Board noted that Water Oak reviewed and tested any signals prior to implementation to ensure transactions are compliant and further WOA All Asset’s investment objective. The Board concluded that Water Oak had sufficient quality and depth of personnel, resources, investment methods and compliance policies and procedures essential to performing its duties under the WOA Advisory Agreement and that the nature, overall quality and extent of the management services to be provided by Water Oak to WOA All Asset were satisfactory.

Performance.The Board discussed the reports prepared by Broadridge and reviewed the performance of WOA All Asset as compared to its peer group, Morningstar category and benchmark for the one year, three year, five year and since inception periods as of December 31, 2019 noting that WOA All Asset underperformed its peer group median and benchmark, but matched its Morningstar category median for the one year period while outperforming its peer group median and Morningstar category median but underperforming its benchmark for the three year and five year periods. The Board further noted that WOA All Asset underperformed its Morningstar category median, peer group median and benchmark for the since inception period. The Board discussed the underperformance of WOA All Asset versus its benchmark, the BBgBarc Glb Agg TR USD 40/MSCI ACWI Index, for all periods noting that WOA All Asset had changed its benchmark on June 28, 2019. While WOA All Asset underperformed its benchmark for most periods ended December 31, 2019, the Board concluded that recent performance was acceptable and that the current strategy was expected to benefit WOA All Asset and its shareholders in the long-term. The Board noted that WOA All Asset’s larger investment in cash and fixed income as compared to its peer group and Morningstar category funds may have impacted relative performance. After discussion, the Board concluded that past performance was satisfactory and in-line with the Fund’s investment objective.

Fees and Expenses. As to the costs of the services to be provided by Water Oak, the Board reviewed and discussed WOA All Asset’s advisory fee and total operating expenses as compared to its peer group and Morningstar category as presented in the Broadridge Report. The Board noted that the 1.00% advisory fee for WOA All Asset was very close to the peer group average of 0.98% and just slightly above the Morningstar category median of 0.95% for the tactical allocation category. The Board reviewed the contractual expense limitation arrangements for WOA All Asset, and noted Water Oak’s commitment to waive or limit its advisory fee and/or reimburse expenses at least until June 30, 2021 in order to limit net annual operating expenses, exclusive of certain fees, so as not to exceed 1.50% of WOA All Asset’s average net assets and found such arrangements to be in line with its peers. The Board also noted earlier discussions with the representatives of Water Oak regarding the possibility of either adding a break point or reducing the advisory fee in the future. The Board concluded that based on Water Oak’s experience, expertise and services to WOA All Asset, the advisory fee charged by Water Oak was not unreasonable.

Profitability.The Board also considered the level of profit that could be expected to accrue to Water Oak with respect to WOA All Asset based on the profitability report and analysis reviewed by the Board and the selected financial information of Water Oak provided by Water Oak. After review and discussion, the Board concluded that based on the services provided by Water Oak and the current assets of WOA All Asset, that the profits from Water Oak’s relationship with WOA All Asset were not excessive.

Economies of Scale. As to the extent to which WOA All Asset would realize economies of scale as it grows, and whether the fee levels reflect these economies of scale for the benefit of its shareholders, the Board

22

discussed the current size of WOA All Asset, Water Oak’s expectations for growth of WOA All Asset, and concluded that any additional material economies of scale would not be achieved in the near term.

Conclusion. The Board relied upon the advice of counsel, and their own business judgment in determining the material factors to be considered in evaluating the WOA Advisory Agreement and the weight to be given to each such factor. Accordingly, having requested and received such information from Water Oak as the Trustees believed to be reasonably necessary to evaluate the terms of the WOA Advisory Agreement, and as assisted by the advice of independent counsel, the Board, including a majority of the Independent Trustees, determined that, with respect to the WOA Advisory Agreement, (a) the terms of the WOA Advisory Agreement are reasonable; (b) the advisory fee is not unreasonable; and (c) the WOA Advisory Agreement is in the best interests of WOA All Asset and its shareholders. In considering the renewal of the WOA Advisory Agreement, the Board did not identify any one factor as all important, but rather considered these factors collectively and determined that approval of the renewal of the WOA Advisory Agreement was in the best interest of WOA All Asset and its shareholders. Moreover, the Board noted that each Trustee may have afforded different weight to the various factors in reaching his conclusions with respect to the WOA Advisory Agreement.

23

WOA All Asset I

SUPPLEMENTAL INFORMATION (Unaudited)

February 29, 2020

The Trustees and the officers of the Trust are listed below with their present positions with the Trust and principal occupations over at least the last five years. The business address of each Trustee and Officer is 225 PictoriaDrive, Suite 450, Cincinnati, OH 45246. All correspondence to the Trustees and Officers should be directed to c/o Gemini Fund Services, LLC, P.O. Box 541150, Omaha, Nebraska 68154.

Independent Trustees

Name and Year of Birth	Position/Term of Office*	Principal Occupation During the Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships held by Trustee During the Past Five Years
Thomas T. Sarkany 1946	Trustee Since October 2011	President, TTS Consultants, LLC (financial services) (since 2010).	1	Director, Aquila Distributors; Trustee, Arrow ETF Trust; Trustee, Arrow Investments Trust; Trustee, Northern Lights Fund Trust IV
Anthony H. Lewis 1946	Trustee Since May 2011	Chairman and CEO of The Lewis Group USA (executive consulting firm) (since 2007).	1	Director, Member of the Compensation Committee and Member of the Risk Committee of Torotel Inc. (Magnetics, Aerospace and Defense), Trustee, Chairman of the Fair Valuation Committee and Member of the Audit Committee of the Wildermuth Endowment Strategy Fund
Keith Rhoades 1948	Trustee Since May 2011	Retired since 2008.	1	NONE
Randal D. Skalla 1962	Trustee Since May 2011	President, L5 Enterprises, Inc. (financial services company) (since 2001).	1	Board Member, Orizon Investment Counsel (financial services company) (from 2001 to 2017)

24

WOA All Asset I

SUPPLEMENTAL INFORMATION (Unaudited) (Continued)

February 29, 2020

Interested Trustees and Officers

Name and Year of Birth	Position/Term of Office*	Principal Occupation During the Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships held by Trustee During the Past Five Years
Brian Nielsen** 1972	Trustee Since May 2011	Trustee of Northern Lights Fund Trust II (since 2011); Special Projects Counsel of NorthStar Financial Services Group, LLC (from 2018 to 2019 ); Secretary of CLS Investments, LLC (from 2001 to 2018); Secretary of Orion Advisor Services, LLC (from 2001 to 2018); Manager (from 2012 to 2015), General Counsel and Secretary (from 2003 to 2018) of NorthStar Financial Services Group, LLC; CEO (from 2012 to 2018), Secretary (from 2003 to 2018) and Manager (from 2005 to 2018) of Northern Lights Distributors, LLC; Director, Secretary and General Counsel of Constellation Trust Company (from 2004 to 2018); CEO (from 2015 to 2018), Manager (from 2008 to 2015), General Counsel and Secretary (from 2011 to 2018) of Northern Lights Compliance Services, LLC; General Counsel and Secretary of Blu Giant, LLC (from 2011 to 2018); Secretary of Gemini Fund Services, LLC (from 2012 to 2018); Manager of Arbor Point Advisors, LLC (from 2012 to 2018); Secretary and General Counsel of NorthStar Holdings, LLC (from 2013 to 2015); Director, Secretary and General Counsel of NorthStar CTC Holdings, Inc. (from 2015 to 2018) and Secretary and Chief Legal Officer of AdvisorOne Funds (from 2003 to 2018).	1	Manager of Northern Lights Distributors, LLC (from 2005 to 2018); Manager of NorthStar Financial Services Group, LLC (from 2012 to 2015); Manager of Arbor Point Advisors, LLC (from 2012 to 2018); Director of Constellation Trust Company (from 2004 to 2018)
Kevin E. Wolf 1969	President Since January 2013	Vice President of The UltimusGroup, LLC and Executive Vice President of Gemini Fund Services, LLC (since 2019), President, Gemini Fund Services, LLC (2012-2019).	N/A	N/A
Richard Malinowski 1983	Secretary Since January 2018	Senior Vice President and Senior Managing Counsel, Gemini Fund Services, LLC, (since February 2020); Senior Vice President Legal Administration, Gemini Fund Services, LLC (since April 2017); Vice President and Counsel (April 2016 to 2017) and AVP and Staff Attorney (September 2012 to March 2016).	N/A	N/A
Erik Naviloff 1968	Treasurer Since January 2013	Vice President of Gemini Fund Services, LLC (since 2011).	N/A	N/A
Emile R. Molineaux 1962	Chief Compliance Officer and Anti Money Laundering Officer Since May 2011	Senior Compliance Officer and CCO of Various clients of Northern Lights Compliance Services, LLC (since 2011).	N/A	N/A

* The term of office for each Trustee and Officer listed above will continue indefinitely.

** Brian Nielsen is an “interested person” of the Trust as that term is defined under the 1940 Act, because of his prior affiliation with Northern Lights Distributors, LLC (the Fund’s Distributor).

*** As of February 29, 2020, the Trust was comprised of 20 active portfolios managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Fund, and not to any other series of the Trust. The Fund does not hold itself out as related to any other series within the Trust for investment purposes, nor does it share the same investment adviser with any other series.

25

Privacy Policy

Rev. May 2019

FACTS	WHAT DOES NORTHERN LIGHTS FUND TRUST II (“NLFT II”) DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include:
	●    Social Security number ●    Employment information ●    Account balances	●    Account transactions ●    Income ●    Investment experience
	When you are no longer our customer, we continue to share your information as described in this notice.
How?	All financial companies need to share a customer’s personal information to run their everyday business - to process transactions, maintain customer accounts, and report to credit bureaus. In the section below, we list the reasons financial companies can share their customer’s personal information; the reasons NLFT II chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does NLFT II share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	Yes	No
For our affiliates’ everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates’ everyday business purposes — information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share

Questions? Call 1-402-493-4603

26

Who we are
Who is providing this notice?	Northern Lights Fund Trust II
What we do
How does NLFT II protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
How does NLFT II collect my personal information?	We collect your personal information, for example, when you
	●    open an account ●    give us your income information ●    provide employment information	●    provide account information ●    give us your contact information
	We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only ●    sharing for affiliates’ everyday business purposes—information about your creditworthiness ●    affiliates from using your information to market to you ●    sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. ●    Northern Lights Fund Trust II has no affiliates.
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. ●    NLFT II does not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products and services to you. ●    Our joint marketing partners include other financial service companies.

27

PROXY VOTING POLICY

Information regarding how the Fund voted proxies relating to portfolio securities for the most recent twelve-month period ended June 30 as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies is available without charge, upon request, by calling 1-855-754-7935 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

PORTFOLIO HOLDINGS

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (1-800-SEC-0330). The information on Form N-Q is available without charge, upon request, by calling 1-855-754-7935.

INVESTMENT ADVISOR

Water Oak Advisors, LLC

145 Lincoln Avenue, Suite A

Winter Park, Florida 32789

ADMINISTRATOR

Gemini Fund Services, LLC

80 Arkay Drive, Suite 110

Hauppauge, New York 11788

Item 2. Code of Ethics.

(a)       As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(b)        For purposes of this item, “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:

(1) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

(2) Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant;

(3)        Compliance with applicable governmental laws, rules, and regulations;

(4) The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and

(5)        Accountability for adherence to the code.

(c)        Amendments: During the period covered by the report, there have not been any amendments to the provisions of the code of ethics.

(d)        Waivers: During the period covered by the report, the registrant has not granted any express or implicit waivers from the provisions of the code of ethics.

(e) The Code of Ethics is not posted on Registrant’ website.

(f) A copy of the Code of Ethics is attached as an exhibit.

Item 3. Audit Committee Financial Expert.

(a) The Registrant’s board of trustees has determined that Keith Rhoades is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Rhoades is independent for purposes of this Item.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees

2020 - $13,800

2019 - $13,800

(b) Audit-Related Fees

2020 - None

2019 – None

(c) Tax Fees

2020 – $ 2,800

2019 – $ 2,800

Preparation of Federal & State income tax returns, assistance with calculation of required income, capital gain and excise distributions and preparation of Federal excise tax returns.

(d) All Other Fees

2020 - None

2019 - None

(e) (1)Audit Committee’s Pre-Approval Policies

The registrant’s Audit Committee is required to pre-approve all audit services and, when appropriate, any non-audit services (including audit-related, tax and all other services) to the registrant. The registrant’s Audit Committee also is required to pre-approve, when appropriate, any non-audit services (including audit-related, tax and all other services) to its adviser, or any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant, to the extent that the services may be determined to have an impact on the operations or financial reporting of the registrant. Services are reviewed on an engagement by engagement basis by the Audit Committee.

(2) Percentages of Services Approved by the Audit Committee

	2020			2019
Audit-Related Fees:		0.00	%		0.00	%
Tax Fees:		0.00	%		0.00	%
All Other Fees:		0.00	%		0.00	%

(f) During the audit of registrant's financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant's engagement were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

(g) The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant:

2020 - $ 2,800

2019 - $ 2,800

(h)        The registrant's audit committee has considered whether the provision of non-audit services to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence.

Item 5. Audit Committee of Listed Companies.Not applicable to open-end investment companies.

Item 6. Schedule of Investments.See Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Funds. Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders. None

Item 11. Controls and Procedures.

(a)       Based on an evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the principal executive officer and principal financial officer of the Registrant have concluded that the disclosure controls and procedures of the Registrant are reasonably designed to ensure that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported by the filing date, including that information required to be disclosed is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b)       There were no significant changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. -Not applicable to open-end investment companies.

Item 13. Exhibits.

(a)(1) Code of Ethics herewith.

(a)(2) Certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 11(a)(2) of Form N-CSR) are filed herewith.

(a)(3) Not applicable for open-end investment companies.

(b) Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 11(b) of Form N-CSR) are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)Northern Lights Fund Trust II

By (Signature and Title)

/s/ Kevin E. Wolf

Kevin E. Wolf, Principal Executive Officer/President

Date 5/11/20

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)

/s/ Kevin E. Wolf

Kevin E. Wolf, Principal Executive Officer/President

Date 5/11/20

By (Signature and Title)

/s/ Erik Naviloff

Erik Naviloff, Principal Financial Officer/ Treasurer

Date 5/11/20