As filed with the Securities and Exchange Commission on March 16, 2020
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 811-22842
FORUM FUNDS II
Three Canal Plaza, Suite 600
Portland, Maine 04101
Jessica Chase, Principal Executive Officer
Three Canal Plaza, Suite 600
Portland, Maine 04101
207-347-2000
Date of fiscal year end: July 31
Date of reporting period: August 1, 2019 – January 31, 2020
ITEM 1. REPORT TO STOCKHOLDERS.
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
ABR
Dynamic
Short
Volatility
Fund
Semi-Annual
Report
January
31,
2020
(Unaudited)
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
SCHEDULE
OF
INVESTMENTS
January
31,
2020
See
Notes
to
Financial
Statements.
At
January
31,
2020,
the
Fund
held
the
following
exchange
traded
futures
contracts:
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's investments
as
of
January
31,
2020.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
For
more
information
on
valuation
inputs,
and
their
aggregation
into
the
levels
used
in
the
table
below,
please
refer
to
the
Security
Valuation
section
in
Note
2
of
the
accompanying
Notes
to
Financial
Statements.
The
Level
1
value
displayed
in
this
table
includes
futures.
The
Level
2
value
displayed
in
this
table
is
U.S.
Treasury
Securities.
Principal
Security
Description
Rate
Maturity
Value
U.S.
Government
&
Agency
Obligations
-
70.4%
U.S.
Treasury
Securities
-
70.4%
30,000,000
U.S.
Treasury
Bill
(a)
1.83-1.90%
06/18/20
$
29,830,425
3,000,000
U.S.
Treasury
Bill
(a)
1.77
09/10/20
2,972,741
3,000,000
U.S.
Treasury
Bill
(a)
1.41
12/03/20
2,964,044
35,767,210
Total
U.S.
Government
&
Agency
Obligations
(Cost
$35,721,104)
35,767,210
Investments,
at
value
-
70.4%
(Cost
$35,721,104)
$
35,767,210
Other
Assets
&
Liabilities,
Net
-
29.6%
15,060,873
Net
Assets
-
100.0%
$
50,828,083
(a)
Zero
coupon
bond.
Interest
rate
presented
is
yield
to
maturity.
Contracts
Description
Expiration
Date
Notional
Contract
Value
Value
Net
Unrealized
Appreciation
158
CBOE
VIX
Future
02/19/20
$
2,646,755
$
2,879,550
$
232,795
118
CBOE
VIX
Future
03/18/20
2,031,916
2,091,550
59,634
283
S&P
500
E-mini
Future
03/20/20
45,404,374
45,619,600
215,226
$
50,083,045
$
50,590,700
$
507,655
Valuation
Inputs
Investments
in
Securities
Other
Financial
Instruments*
Level
1
-
Quoted
Prices
$
–
$
507,655
Level
2
-
Other
Significant
Observable
Inputs
35,767,210
–
Level
3
-
Significant
Unobservable
Inputs
–
–
Total
$
35,767,210
$
507,655
*
Other
Financial
Instruments
are
derivatives
not
reflected
in
the
Schedule
of
Investments,
such
as
futures,
which
are
valued
at
the
unrealized
appreciation
(depreciation)
at
period
end.
PORTFOLIO
HOLDINGS
%
of
Total
Net
Assets
U.S.
Government
&
Agency
Obligations
70.4%
Other
Assets
&
Liabilities,
Net
29.6%
100.0%
ABR
Dynamic
Short
Volatility
Fund
SCHEDULE
OF
INVESTMENTS
January
31,
2020
See
Notes
to
Financial
Statements.
At
January
31,
2020,
the
Fund
held
the
following
exchange
traded
futures
contracts:
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's investments
as
of
January
31,
2020.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
For
more
information
on
valuation
inputs,
and
their
aggregation
into
the
levels
used
in
the
table
below,
please
refer
to
the
Security
Valuation
section
in
Note
2
of
the
accompanying
Notes
to
Financial
Statements.
The
Level
1
value
displayed
in
this
table
includes
futures.
The
Level
2
value
displayed
in
this
table
is
U.S.
Treasury
Securities.
Principal
Security
Description
Rate
Maturity
Value
U.S.
Government
&
Agency
Obligations
-
58.6%
U.S.
Treasury
Securities
-
58.6%
$
692,000
U.S.
Treasury
Bond
2.50%
02/15/45
$
758,037
637,000
U.S.
Treasury
Bond
3.00
05/15/45
761,924
646,000
U.S.
Treasury
Bond
2.88
08/15/45
757,334
635,000
U.S.
Treasury
Bond
3.00
11/15/45
761,554
690,000
U.S.
Treasury
Bond
2.50
02/15/46
757,828
693,000
U.S.
Treasury
Bond
2.50
05/15/46
761,623
4,558,300
Total
U.S.
Government
&
Agency
Obligations
(Cost
$4,251,508)
4,558,300
Investments,
at
value
-
58.6%
(Cost
$4,251,508)
$
4,558,300
Other
Assets
&
Liabilities,
Net
-
41.4%
3,226,973
Net
Assets
-
100.0%
$
7,785,273
Contracts
Description
Expiration
Date
Notional
Contract
Value
Value
Net
Unrealized
Depreciation
(94)
CBOE
VIX
Future
02/19/20
$
(1,581,689)
$
(1,713,150)
$
(131,461)
(71)
CBOE
VIX
Future
03/18/20
(1,181,590)
(1,258,475)
(76,885)
$
(2,763,279)
$
(2,971,625)
$
(208,346)
Valuation
Inputs
Investments
in
Securities
Other
Financial
Instruments*
Level
1
-
Quoted
Prices
$
–
$
(208,346)
Level
2
-
Other
Significant
Observable
Inputs
4,558,300
–
Level
3
-
Significant
Unobservable
Inputs
–
–
Total
$
4,558,300
$
(208,346)
*
Other
Financial
Instruments
are
derivatives
not
reflected
in
the
Schedule
of
Investments,
such
as
futures,
which
are
valued
at
the
unrealized
appreciation
(depreciation)
at
period
end.
PORTFOLIO
HOLDINGS
%
of
Total
Net
Assets
U.S.
Government
&
Agency
Obligations
58.6%
Other
Assets
&
Liabilities,
Net
41.4%
100.0%
ABR
Funds
STATEMENTS
OF
ASSETS
AND
LIABILITIES
January
31,
2020
See
Notes
to
Financial
Statements.
ABR
Dynamic
Blend
Equity
and
Volatility
Fund
ABR
Dynamic
Short
Volatility
Fund
ASSETS
Investments,
at
value
(Cost
$35,721,104
and
$4,251,508,
respectively)
$
35,767,210
$
4,558,300
Cash
9,563,630
1,087,479
Deposits
with
broker
5,477,527
1,911,107
Receivables:
Fund
shares
sold
93,553
14,713
Investment
securities
sold
–
172,080
Interest
3,717
38,002
From
investment
adviser
–
25,603
Prepaid
expenses
17,780
12,901
Total
Assets
50,923,417
7,820,185
LIABILITIES
Payables:
Fund
shares
redeemed
10,530
2,301
Accrued
Liabilities:
Investment
adviser
fees
53,146
–
Trustees’
fees
and
expenses
109
157
Fund
services
fees
11,833
14,184
Other
expenses
19,716
18,270
Total
Liabilities
95,334
34,912
NET
ASSETS
$
50,828,083
$
7,785,273
COMPONENTS
OF
NET
ASSETS
Paid-in
capital
$
50,387,345
$
7,469,654
Distributable
earnings
440,738
315,619
NET
ASSETS
$
50,828,083
$
7,785,273
SHARES
OF
BENEFICIAL
INTEREST
AT
NO
PAR
VALUE
(UNLIMITED
SHARES
AUTHORIZED)
Institutional
Shares
4,360,303
754,817
Investor
Shares
588,664
188,597
NET
ASSET
VALUE,
OFFERING
AND
REDEMPTION
PRICE
PER
SHARE
Institutional
Shares
(based
on
net
assets
of
$44,864,490
and
$6,236,599,
respectively)
$
10.29
$
8.26
Investor
Shares
(based
on
net
assets
of
$5,963,593
and
$1,548,674,
respectively)
$
10.13
$
8.21
ABR
Funds
STATEMENTS
OF
OPERATIONS
SIX
MONTHS
ENDED
JANUARY
31,
2020
See
Notes
to
Financial
Statements.
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
ABR
Dynamic
Short
Volatility
Fund
INVESTMENT
INCOME
Interest
income
$
319,940
$
42,735
Total
Investment
Income
319,940
42,735
EXPENSES
Investment
adviser
fees
376,286
63,824
Fund
services
fees
44,710
33,835
Transfer
agent
fees:
Institutional
Shares
10,427
11,826
Investor
Shares
12,336
14,576
Distribution
fees:
Investor
Shares
5,694
1,267
Custodian
fees
2,467
2,887
Registration
fees:
Institutional
Shares
9,502
8,866
Investor
Shares
9,704
10,686
Professional
fees
22,227
13,880
Trustees'
fees
and
expenses
5,344
1,976
Brokerage
fees
3,884
4,276
Other
expenses
42,120
13,537
Total
Expenses
544,701
181,436
Fees
waived
and
expenses
reimbursed
(108,979)
(116,347)
Net
Expenses
435,722
65,089
NET
INVESTMENT
LOSS
(115,782)
(22,354)
NET
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
Net
realized
gain
on:
Investments
–
141,082
Futures
1,092,552
694,556
Net
realized
gain
1,092,552
835,638
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
73,262
194,318
Futures
(333,631)
(209,702)
Net
change
in
unrealized
appreciation
(depreciation)
(260,369)
(15,384)
NET
REALIZED
AND
UNREALIZED
GAIN
832,183
820,254
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
$
716,401
$
797,900
ABR
Funds
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
See
Notes
to
Financial
Statements.
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
ABR
Dynamic
Short
Volatility
Fund
For
the
Six
Months
Ended
January
31,
2020
For
the
Year
Ended
July
31,
2019
For
the
Six
Months
Ended
January
31,
2020
For
the
Year
Ended
July
31,
2019
OPERATIONS
Net
investment
loss
$
(115,782)
$
(472,931)
$
(22,354)
$
(34,414)
Net
realized
gain
(loss)
1,092,552
(29,054)
835,638
133,509
Net
change
in
unrealized
appreciation
(depreciation)
(260,369)
563,043
(15,384)
21,075
Increase
in
Net
Assets
Resulting
from
Operations
716,401
61,058
797,900
120,170
DISTRIBUTIONS
TO
SHAREHOLDERS
Institutional
Shares
(297,985)
(1,166,701)
(431,179)
(313,280)
Investor
Shares
(38,721)
(139,157)
(152,115)
(151,806)
Total
Distributions
Paid
(336,706)
(1,305,858)
(583,294)
(465,086)
CAPITAL
SHARE
TRANSACTIONS
Sale
of
shares:
Institutional
Shares
15,515,878
26,732,916
4,277,798
1,870,260
Investor
Shares
3,118,730
3,775,779
3,280,926
997,665
Reinvestment
of
distributions:
Institutional
Shares
234,469
1,062,270
311,458
243,751
Investor
Shares
38,721
139,157
152,115
151,806
Redemption
of
shares:
Institutional
Shares
(8,548,366)
(13,259,134)
(1,394,618)
(2,037,468)
Investor
Shares
(400,726)
(1,989,725)
(2,595,734)
(2,009,491)
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
9,958,706
16,461,263
4,031,945
(783,477)
Increase
(Decrease)
in
Net
Assets
10,338,401
15,216,463
4,246,551
(1,128,393)
NET
ASSETS
Beginning
of
Period
40,489,682
25,273,219
3,538,722
4,667,115
End
of
Period
$
50,828,083
$
40,489,682
$
7,785,273
$
3,538,722
SHARE
TRANSACTIONS
Sale
of
shares:
Institutional
Shares
1,527,091
2,645,296
521,322
264,762
Investor
Shares
310,747
362,151
391,616
139,729
Reinvestment
of
distributions:
Institutional
Shares
23,123
110,194
37,937
42,539
Investor
Shares
3,880
14,617
18,641
26,586
Redemption
of
shares:
Institutional
Shares
(850,248)
(1,333,224)
(172,199)
(312,390)
Investor
Shares
(40,069)
(204,499)
(315,197)
(298,542)
Increase
(Decrease)
in
Shares
974,524
1,594,535
482,120
(137,316)
ABR
DYNAMIC
BLEND
EQUITY
&
VOLATILITY
FUND
FINANCIAL
HIGHLIGHTS
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period
.
For
the
Six
Months
Ended
January
31,
2020
For
the
Years
Ended
July
31,
August
3,
2015
(a)
Through
July
31,
2016
2019
2018
2017
INSTITUTIONAL
SHARES
NET
ASSET
VALUE,
Beginning
of
Period
$
10.20
$
10.63
$
10.12
$
9.67
$
10.00
INVESTMENT
OPERATIONS
Net
investment
loss
(b)
(0.03)
(0.13)
(0.16)
(0.02)
(0.00)(c)
Net
realized
and
unrealized
gain
(loss)
0.20
0.08
1.00
0.59
(0.26)(d)
Total
from
Investment
Operations
0.17
(0.05)
0.84
0.57
(0.26)
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
investment
income
–
–
–
–
(0.02)
Net
realized
gain
(0.08)
(0.38)
(0.33)
(0.12)
(0.05)
Total
Distributions
to
Shareholders
(0.08)
(0.38)
(0.33)
(0.12)
(0.07)
NET
ASSET
VALUE,
End
of
Period
$
10.29
$
10.20
$
10.63
$
10.12
$
9.67
TOTAL
RETURN
1.70%(e)
(0.31)%
8.45%
5.99%
(2.56)%(e)
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Period
(000s
omitted)
$
44,864
$
37,331
$
23,783
$
15,335
$
1,410
Ratios
to
Average
Net
Assets:
Net
investment
loss
(0.51)%(g)
(1.31)%
(1.54)%
(0.21)%(f)
(0.03)%(f)(g)
Net
expenses
2.00%(g)
2.00%
2.03%
2.00%(f)
2.00%(f)(g)
Brokerage
fees
0.02%(g)
0.02%
0.03%
–%(f)
–%(f)(g)
Net
expenses
without
brokerage
fees
1.98%(g)
1.98%
2.00%
2.00%(f)
2.00%(f)(g)
Gross
expenses
(h)
2.40%(g)
2.41%
2.68%
4.63%(f)
21.68%(f)(g)
PORTFOLIO
TURNOVER
RATE
0%(e)
0%
0%
467%
739%(e)
(a)
Commencement
of
operations.
(b)
Calculated
based
on
average
shares
outstanding
during
each
period.
(c)
Less
than
$0.01
per
share.
(d)
Per
share
amount
does
not
accord
with
the
amount
reported
in
the
Statement
of
Operations
due
to
the
timing
of
Fund
share
sales
and
the
amount
per
share
of
realized
and
unrealized
gains
and
losses
at
such
times.
(e)
Not
annualized.
(f)
The
ratios
of
expenses
and
net
investment
loss
to
average
net
assets
do
not
reflect
the
Fund’s
proportionate
share
of
income
and
expenses
of
underlying
investment
companies
in
which
the
Fund
invests.
(g)
Annualized.
(h)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
ABR
DYNAMIC
BLEND
EQUITY
&
VOLATILITY
FUND
FINANCIAL
HIGHLIGHTS
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period
.
For
the
Six
Months
Ended
January
31,
2020
For
the
Years
Ended
July
31,
August
14,
2015
(a)
Through
July
31,
2016
2019
2018
2017
INVESTOR
SHARES
NET
ASSET
VALUE,
Beginning
of
Period
$
10.05
$
10.51
$
10.08
$
9.65
$
9.99
INVESTMENT
OPERATIONS
Net
investment
loss
(b)
(0.04)
(0.16)
(0.19)
(0.03)
(0.01)
Net
realized
and
unrealized
gain
(loss)
0.20
0.08
0.95
0.58
(0.26)(c)
Total
from
Investment
Operations
0.16
(0.08)
0.76
0.55
(0.27)
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
investment
income
–
–
–
–
(0.02)
Net
realized
gain
(0.08)
(0.38)
(0.33)
(0.12)
(0.05)
Total
Distributions
to
Shareholders
(0.08)
(0.38)
(0.33)
(0.12)
(0.07)
NET
ASSET
VALUE,
End
of
Period
$
10.13
$
10.05
$
10.51
$
10.08
$
9.65
TOTAL
RETURN
1.63%(d)
(0.61)%
7.67%
5.79%
(2.70)%(d)
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Period
(000s
omitted)
$
5,964
$
3,158
$
1,491
$
1,308
$
260
Ratios
to
Average
Net
Assets:
Net
investment
loss
(0.76)%(f)
(1.58)%
(1.80)%
(0.29)%(e)
(0.14)%(e)(f)
Net
expenses
2.25%(f)
2.25%
2.28%
2.25%(e)
2.25%(e)(f)
Brokerage
fees
0.02%(f)
0.02%
0.03%
–%(e)
–%(e)(f)
Net
expenses
without
brokerage
fees
2.23%(f)
2.23%
2.25%
2.25%(e)
2.25%(e)(f)
Gross
expenses
(g)
3.59%(f)
3.81%
6.41%
13.83%(e)
41.59%(e)(f)
PORTFOLIO
TURNOVER
RATE
0%(d)
0%
0%
467%
739%(d)
(a)
Commencement
of
operations.
(b)
Calculated
based
on
average
shares
outstanding
during
each
period.
(c)
Per
share
amount
does
not
accord
with
the
amount
reported
in
the
Statement
of
Operations
due
to
the
timing
of
Fund
share
sales
and
the
amount
per
share
of
realized
and
unrealized
gains
and
losses
at
such
times.
(d)
Not
annualized.
(e)
The
ratios
of
expenses
and
net
investment
loss
to
average
net
assets
do
not
reflect
the
Fund’s
proportionate
share
of
income
and
expenses
of
underlying
investment
companies
in
which
the
Fund
invests.
(f)
Annualized.
(g)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
ABR
DYNAMIC
SHORT
VOLATILITY
FUND
FINANCIAL
HIGHLIGHTS
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period
.
For
the
Six
Months
Ended
January
31,
2020
For
the
Year
Ended
July
31,
2019
October
2,
2017
(a)
Through
July
31,
2018
INSTITUTIONAL
SHARES
NET
ASSET
VALUE,
Beginning
of
Period
$
7.68
$
7.80
$
10.00
INVESTMENT
OPERATIONS
Net
investment
loss
(b)
(0.03)
(0.05)
(0.05)
Net
realized
and
unrealized
gain
(loss)
1.46
0.57
(2.05)(c)
Total
from
Investment
Operations
1.43
0.52
(2.10)
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
realized
gain
(0.85)
(0.64)
(0.10)
Total
Distributions
to
Shareholders
(0.85)
(0.64)
(0.10)
NET
ASSET
VALUE,
End
of
Period
$
8.26
$
7.68
$
7.80
TOTAL
RETURN
18.67%(d)
9.46%
(21.24)%(d)
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Period
(000s
omitted)
$
6,237
$
2,824
$
2,909
Ratios
to
Average
Net
Assets:
Net
investment
loss
(0.83)%(e)
(0.74)%
(0.73)%(e)
Net
expenses
2.50%(e)
2.50%
2.66%(e)
Brokerage
fees
0.17%(e)
0.14%
0.16%(e)
Net
expenses
without
brokerage
fees
2.33%(e)
2.36%
2.50%(e)
Gross
expenses
(f)
6.17%(e)
6.66%
10.28%(e)
PORTFOLIO
TURNOVER
RATE
392%(d)
963%
748%(d)
(a)
Commencement
of
operations.
(b)
Calculated
based
on
average
shares
outstanding
during
each
period.
(c)
Per
share
amount
does
not
accord
with
the
amount
reported
in
the
Statement
of
Operations
due
to
the
timing
of
Fund
share
sales
and
the
amount
per
share
of
realized
and
unrealized
gains
and
losses
at
such
times.
(d)
Not
annualized.
(e)
Annualized.
(f)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
ABR
DYNAMIC
SHORT
VOLATILITY
FUND
FINANCIAL
HIGHLIGHTS
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period
.
For
the
Six
Months
Ended
January
31,
2020
For
the
Year
Ended
July
31,
2019
October
11,
2017
(a)
Through
July
31,
2018
INVESTOR
SHARES
NET
ASSET
VALUE,
Beginning
of
Period
$
7.64
$
7.79
$
10.06
INVESTMENT
OPERATIONS
Net
investment
loss
(b)
(0.04)
(0.07)
(0.06)
Net
realized
and
unrealized
gain
(loss)
1.46
0.56
(2.11)(c)
Total
from
Investment
Operations
1.42
0.49
(2.17)
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
realized
gain
(0.85)
(0.64)
(0.10)
Total
Distributions
to
Shareholders
(0.85)
(0.64)
(0.10)
NET
ASSET
VALUE,
End
of
Period
$
8.21
$
7.64
$
7.79
TOTAL
RETURN
18.63%(d)
9.07%
(21.81)%(d)
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Period
(000s
omitted)
$
1,549
$
715
$
1,758
Ratios
to
Average
Net
Assets:
Net
investment
loss
(1.06)%(e)
(0.99)%
(0.95)%(e)
Net
expenses
2.75%(e)
2.75%
2.91%(e)
Brokerage
fees
0.17%(e)
0.14%
0.16%(e)
Net
expenses
without
brokerage
fees
2.58%(e)
2.61%
2.75%(e)
Gross
expenses
(f)
10.81%(e)
8.24%
9.55%(e)
PORTFOLIO
TURNOVER
RATE
392%(d)
963%
748%(d)
(a)
Commencement
of
operations.
(b)
Calculated
based
on
average
shares
outstanding
during
each
period.
(c)
Per
share
amount
does
not
accord
with
the
amount
reported
in
the
Statement
of
Operations
due
to
the
timing
of
Fund
share
sales
and
the
amount
per
share
of
realized
and
unrealized
gains
and
losses
at
such
times.
(d)
Not
annualized.
(e)
Annualized.
(f)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
ABR
Funds
NOTES
TO
FINANCIAL
STATEMENTS
January
31,
2020
Organization
The
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
and
ABR
Dynamic
Short
Volatility
Fund
(individually,
a
“Fund”
and
collectively,
the
“Funds”)
are
diversified
and
non-diversified
portfolios
of
Forum
Funds
II
(the
“Trust”),
respectively.
The
Trust
is
a
Delaware
statutory
trust
that
is
registered
as
an
open-end,
management
investment
company
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Act”).
Under
its
Trust
Instrument,
the
Trust
is
authorized
to
issue
an
unlimited
number
of
each
Fund’s
shares
of
beneficial
interest
without
par
value.
Each
Fund
currently
offers
two
classes
of
shares:
Institutional
Shares
and
Investor
Shares.
Institutional
Shares
and
Investor
Shares
commenced
operations
on
August
3,
2015,
and
August
14,
2015,
respectively,
for
the
ABR
Dynamic
Blend
Equity
&
Volatility
Fund,
and
October
2,
2017
and
October
11,
2017,
respectively,
for
the
ABR
Dynamic
Short
Volatility
Fund.
The
ABR
Dynamic
Blend
Equity
&
Volatility
Fund’s
investment
objective
is
to
seek
investment
results
that
correspond
generally
to
the
performance,
before
the
Fund’s
fees
and
expenses,
of
a
benchmark
index
that
measures
the
investment
returns
of
a
dynamic
ratio
of
large-capitalization
stocks
and
the
volatility
of
large-capitalization
stocks.
The
ABR
Dynamic
Short
Volatility
Fund’s
investment
objective
is
to
seek
long-term
capital
appreciation.
Summary
of
Significant
Accounting
Policies
The
Funds
are
investment
companies
and
follow
accounting
and
reporting
guidance
under
Financial
Accounting
Standards
Board
(“FASB”)
Accounting
Standards
Codification
(“ASC”)
Topic
946,
“Financial
Services
–
Investment
Companies.”
These
financial
statements
are
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“GAAP”),
which
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities,
the
disclosure
of
contingent
liabilities
at
the
date
of
the
financial
statements,
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
fiscal
period.
Actual
amounts
could
differ
from
those
estimates.
The
following
summarizes
the
significant
accounting
policies
of
each
Fund:
Security
Valuation
–
Securities
are
valued
at
market
prices
using
the
last
quoted
trade
or
official
closing
price
from
the
principal
exchange
where
the
security
is
traded,
as
provided
by
independent
pricing
services
on
each
Fund
business
day.
In
the
absence
of
a
last
trade,
securities
are
valued
at
the
mean
of
the
last
bid
and
ask
price
provided
by
the
pricing
service.
Debt
securities
may
be
valued
at
prices
supplied
by
a
fund’s
pricing
agent
based
on
broker
or
dealer
supplied
valuations
or
matrix
pricing,
a
method
of
valuing
securities
by
reference
to
the
value
of
other
securities
with
similar
characteristics
such
as
rating,
interest
rate
and
maturity.
Futures
contracts
are
valued
at
the
day’s
settlement
price
on
the
exchange
where
the
contract
is
traded.
Shares
of
non-exchange
traded
open-end
mutual
funds
are
valued
at
net
asset
value
(“NAV”).
Short-term
investments
that
mature
in
sixty
days
or
less
may
be
valued
at
amortized
cost.
Each
Fund
values
its
investments
at
fair
value
pursuant
to
procedures
adopted
by
the
Trust’s
Board
of
Trustees
(the
“Board”)
if
(1)
market
quotations
are
not
readily
available
or
(2)
the
Adviser,
as
defined
in
Note
4,
believes
that
the
values
available
are
unreliable.
The
Trust’s
Valuation
Committee,
as
defined
in
each
Fund’s
registration
statement,
performs
certain
functions
as
they
relate
to
the
administration
and
oversight
of
each
Fund’s
valuation
procedures.
Under
these
procedures,
the
Valuation
Committee
convenes
on
a
regular
and
ad
hoc
basis
to
review
such
investments
and
considers
a
number
of
factors,
including
valuation
methodologies
and
significant
unobservable
inputs,
when
arriving
at
fair
value.
The
Valuation
Committee
may
work
with
the
Adviser
to
provide
valuation
inputs.
In
determining
fair
valuations,
inputs
may
include
market-based
analytics
that
may
consider
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values
and
other
relevant
investment
information.
Adviser
inputs
may
include
an
income-based
approach
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
in
determining
fair
value.
Discounts
may
also
be
applied
based
on
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
The
Valuation
Committee
performs
regular
reviews
of
valuation
methodologies,
key
inputs
and
assumptions,
disposition
analysis
and
market
activity.
Fair
valuation
is
based
on
subjective
factors
and,
as
a
result,
the
fair
value
price
of
an
investment
may
differ
from
the
security’s
market
price
and
may
not
be
the
price
at
which
the
asset
may
be
sold.
Fair
valuation
could
result
in
a
different
NAV
than
a
NAV
determined
by
using
market
quotes.
GAAP
has
a
three-tier
fair
value
hierarchy.
The
basis
of
the
tiers
is
dependent
upon
the
various
“inputs”
used
to
determine
the
value
of
each
Fund’s
investments.
These
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
-
Quoted
prices
in
active
markets
for
identical
assets
and
liabilities.
ABR
Funds
NOTES
TO
FINANCIAL
STATEMENTS
January
31,
2020
Level
2
-
Prices
determined
using
significant
other
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
prepayment
speeds,
credit
risk,
etc.).
Short-term
securities
with
maturities
of
sixty
days
or
less
are
valued
at
amortized
cost,
which
approximates
market
value,
and
are
categorized
as
Level
2
in
the
hierarchy.
Municipal
securities,
long-term
U.S.
government
obligations
and
corporate
debt
securities
are
valued
in
accordance
with
the
evaluated
price
supplied
by
a
pricing
service
and
generally
categorized
as
Level
2
in
the
hierarchy.
Other
securities
that
are
categorized
as
Level
2
in
the
hierarchy
include,
but
are
not
limited
to,
warrants
that
do
not
trade
on
an
exchange,
securities
valued
at
the
mean
between
the
last
reported
bid
and
ask
quotation
and
international
equity
securities
valued
by
an
independent
third
party
with
adjustments
for
changes
in
value
between
the
time
of
the
securities’
respective
local
market
closes
and
the
close
of
the
U.S.
market.
Level
3
-
Significant
unobservable
inputs
(including
each
Fund’s
own
assumptions
in
determining
the
fair
value
of
investments).
The
aggregate
value
by
input
level,
as
of
January
31,
2020,
for
each
Fund’s
investments
is
included
in
each
Fund’s
Schedule
of
Investments.
Security
Transactions,
Investment
Income
and
Realized
Gain
and
Loss
–
Investment
transactions
are
accounted
for
on
the
trade
date.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Foreign
dividend
income
is
recorded
on
the
ex-dividend
date
or
as
soon
as
possible
after
determining
the
existence
of
a
dividend
declaration
after
exercising
reasonable
due
diligence.
Income
and
capital
gains
on
some
foreign
securities
may
be
subject
to
foreign
withholding
taxes,
which
are
accrued
as
applicable.
Interest
income
is
recorded
on
an
accrual
basis.
Premium
is
amortized
and
discount
is
accreted
using
the
effective
interest
method.
Identified
cost
of
investments
sold
is
used
to
determine
the
gain
and
loss
for
both
financial
statement
and
federal
income
tax
purposes.
Futures
Contracts
–
Each
Fund
may
purchase
futures
contracts
to
gain
exposure
to
market
changes,
which
may
be
more
efficient
or
cost
effective
than
actually
buying
the
securities.
A
futures
contract
is
an
agreement
between
parties
to
buy
or
sell
a
security
at
a
set
price
on
a
future
date.
Upon
entering
into
such
a
contract,
a
fund
is
required
to
pledge
to
the
broker
an
amount
of
cash,
U.S.
Government
obligations
or
other
high-quality
debt
securities
equal
to
the
minimum
“initial
margin”
requirements
of
the
exchange
on
which
the
futures
contract
is
traded.
Pursuant
to
the
contract,
the
Fund
agrees
to
receive
from
or
pay
to
the
broker
an
amount
of
cash
equal
to
the
daily
fluctuation
in
the
value
of
the
contract.
Such
receipts
or
payments
are
known
as
“variation
margin”
and
are
recorded
by
the
Fund
as
unrealized
gains
or
losses.
When
the
contract
is
closed,
the
Fund
records
a
realized
gain
or
loss
equal
to
the
difference
between
the
value
of
the
contract
at
the
time
it
was
opened
and
value
at
the
time
it
was
closed.
Risks
of
entering
into
futures
contracts
include
the
possibility
that
there
may
be
an
illiquid
market
and
that
a
change
in
the
value
of
the
contract
may
not
correlate
with
changes
in
the
value
of
the
underlying
securities.
Notional
amounts
of
each
individual
futures
contract
outstanding
as
of
January
31,
2020,
for
each
Fund,
are
disclosed
in
the
Schedules
of
Investments.
Distributions
to
Shareholders
–
Each
Fund
declares
any
dividends
from
net
investment
income
and
pays
them
annually.
Any
net
capital
gains
realized
by
the
Funds
are
distributed
at
least
annually.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributions
are
based
on
amounts
calculated
in
accordance
with
applicable
federal
income
tax
regulations,
which
may
differ
from
GAAP.
These
differences
are
due
primarily
to
differing
treatments
of
income
and
gain
on
various
investment
securities
held
by
each
Fund,
timing
differences
and
differing
characterizations
of
distributions
made
by
each
Fund.
Federal
Taxes
–
Each
Fund
intends
to
continue
to
qualify
each
year
as
a
regulated
investment
company
under
Subchapter
M
of
Chapter
1,
Subtitle
A,
of
the
Internal
Revenue
Code
of
1986,
as
amended
(“Code”),
and
to
distribute
all
of
their
taxable
income
to
shareholders.
In
addition,
by
distributing
in
each
calendar
year
substantially
all
of
their
net
investment
income
and
capital
gains,
if
any,
the
Funds
will
not
be
subject
to
a
federal
excise
tax.
Therefore,
no
federal
income
or
excise
tax
provision
is
required.
Each
Fund
will
file
a
U.S.
federal
income
and
excise
tax
return
as
required.
Each
Fund’s
federal
income
tax
returns
are
subject
to
examination
by
the
Internal
Revenue
Service
for
a
period
of
three
fiscal
years
after
they
are
filed.
As
of
January
31,
2020,
there
are
no
uncertain
tax
positions
that
would
require
financial
statement
recognition,
de-recognition
or
disclosure.
Income
and
Expense
Allocation
–
The
Trust
accounts
separately
for
the
assets,
liabilities
and
operations
of
each
of
its
investment
portfolios.
Expenses
that
are
directly
attributable
to
more
than
one
investment
portfolio
are
allocated
among
the
respective
investment
portfolios
in
an
equitable
manner.
ABR
Funds
NOTES
TO
FINANCIAL
STATEMENTS
January
31,
2020
The
Funds'
class-specific
expenses
are
charged
to
the
operations
of
that
class
of
shares.
Income
and
expenses
(other
than
expenses
attributable
to
a
specific
class)
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
the
class’
respective
net
assets
to
the
total
net
assets
of
each
Fund.
Commitments
and
Contingencies
–
In
the
normal
course
of
business,
each
Fund
enters
into
contracts
that
provide
general
indemnifications
by
each
Fund
to
the
counterparty
to
the
contract.
Each
Fund’s
maximum
exposure
under
these
arrangements
is
dependent
on
future
claims
that
may
be
made
against
each
Fund
and,
therefore,
cannot
be
estimated;
however,
based
on
experience,
the
risk
of
loss
from
such
claims
is
considered
remote.
Each
Fund
has
determined
that
none
of
these
arrangements
requires
disclosure
on
each
Fund’s
balance
sheet.
Cash
–
Concentration
in
Uninsured
Account
For
cash
management
purposes,
each
Fund
may
concentrate
cash
with
each
Fund’s
custodian.
This
typically
results
in
cash
balances
exceeding
the
Federal
Deposit
Insurance
Corporation
(“FDIC”)
insurance
limits.
As
of
January
31,
2020,
the
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
and
ABR
Dynamic
Short
Volatility
Fund
Fund
had
$9,313,630
and
$837,479,
respectively,
at
MUFG
Union
Bank,
N.A.
that
exceeded
the
FDIC
insurance
limit.
Fees
and
Expenses
Investment
Adviser
–
ABR
Dynamic
Funds,
LLC
(the
“Adviser”)
is
the
investment
adviser
to
the
Funds.
Pursuant
to
an
investment
advisory
agreement,
the
Adviser
receives
an
advisory
fee,
payable
monthly,
at
an
annual
rate
of
1.75%
and
2.50%
of
the
average
daily
net
assets
of
the
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
and
ABR
Dynamic
Short
Volatility
Fund,
respectively.
Distribution
–
Foreside
Fund
Services,
LLC
serves
as
each
Fund’s
distributor
(the
“Distributor”).
The
Funds
have
adopted
a
Distribution
Plan
(the
“Plan”)
in
accordance
with
Rule
12b-1
of
the
Act.
Under
the
Plan,
each
Fund
may
pay
the
Distributor
and/or
any
other
entity
as
authorized
by
the
Board
a
fee
of
up
to
0.25%
of
each
Fund’s
average
daily
net
assets
of
Investor
Shares
for
providing
distribution
and/
or
shareholder
services
to
the
Funds.
The
Distributor
is
not
affiliated
with
the
Adviser
or
Atlantic
Fund
Administration,
LLC,
a
wholly
owned
subsidiary
of
Apex
US
Holdings,
LLC
(d/b/a
Apex
Fund
Services)
(“Apex”)
or
their
affiliates.
Other
Service
Providers
–
Apex
provides
fund
accounting,
fund
administration,
compliance
and
transfer
agency
services
to
each
Fund.
The
fees
related
to
these
services
are
included
in
Fund
services
fees
and
Transfer
agent
fees
within
the
Statements
of
Operations.
Apex
also
provides
certain
shareholder
report
production
and
EDGAR
conversion
and
filing
services.
Pursuant
to
an
Apex
services
agreement,
each
Fund
pays
Apex
customary
fees
for
its
services.
Apex
provides
a
Principal
Executive
Officer,
a
Principal
Financial
Officer,
a
Chief
Compliance
Officer
and
an
Anti-Money
Laundering
Officer
to
each
Fund,
as
well
as
certain
additional
compliance
support
functions.
Trustees
and
Officers
–
The
Trust
pays
each
Independent
Trustee
an
annual
fee
of
$16,000
($21,000
for
the
Chairman)
for
service
to
the
Trust.
The
Independent
Trustees
and
Chairman
may
receive
additional
fees
for
special
Board
meetings.
The
Independent
Trustees
are
also
reimbursed
for
all
reasonable
out-of-pocket
expenses
incurred
in
connection
with
their
duties
as
Trustees,
including
travel
and
related
expenses
incurred
in
attending
Board
meetings.
The
amount
of
Independent
Trustees’
fees
attributable
to
each
Fund
is
disclosed
in
the
Statements
of
Operations.
Certain
officers
of
the
Trust
are
also
officers
or
employees
of
the
above
named
service
providers,
and
during
their
terms
of
office
received
no
compensation
from
each
Fund.
Expenses
Reimbursed
and
Fees
Waived
The
Adviser has
contractually
agreed
to
waive
its
fee
and/or
reimburse
Fund
expenses
to
limit
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
proxy
expenses
and
extraordinary
expenses)
to
2.00%
for
Institutional
Shares
and
2.25%
for
Investor
Shares
of
the
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
and
2.50%
for
Institutional
Shares
and
2.75%
for
Investor
Shares
of
the
ABR
Dynamic
Short
Volatility
Fund,
through
at
least
at
least
November
30,
2021.
Other
Fund
service
providers
have
voluntarily
agreed
to
waive
and
reimburse
a
portion
of
their
fees.
These
voluntary
fee
waivers
and
reimbursements
may
be
reduced
or
eliminated
at
any
time.
For
the
period
ended
January
31,
2020,
fees
waived
and
expenses
reimbursed
were
as
follows:
ABR
Funds
NOTES
TO
FINANCIAL
STATEMENTS
January
31,
2020
The
Adviser
may
be
reimbursed
by
each
Fund
for
fees
waived
and
expenses
reimbursed
by
the
Adviser
pursuant
to
the
Expense
Cap
if
such
payment
is
approved
by
the
Board,
made
within
three
years
of
the
fee
waiver
or
expense
reimbursement,
and
does
not
cause
the
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
to
exceed
the
lesser
of
(i)
the
then-current
expense
cap,
or
(ii)
the
expense
cap
in
place
at
the
time
the
fees/expenses
were
waived/reimbursed.
As
of
January
31,
2020,
$396,793
and
$404,450
is
subject
to
recapture
by
the
Adviser
for
the
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
and
ABR
Dynamic
Short
Volatility
Fund,
respectively.
Other
Waivers
are
not
eligible
for
recoupment.
Security
Transactions
The
cost
of
purchases
and
proceeds
from
sales
of
investment
securities
(including
maturities),
other
than
short-term
investments,
during
the
period
ended
January
31,
2020,
were
as
follows:
Summary
of
Derivative
Activity
The
volume
of
open
derivative
positions
may
vary
on
a
daily
basis
as
each
Fund
transacts
derivative
contracts
in
order
to
achieve
the
exposure
desired
by
the
Adviser.
The
total
value
of
transactions
for
the
period
ended
January
31,
2020,
for
any
derivative
type
that
was
held
is
as
follows:
Each
Fund’s
use
of
derivatives
during
the
period
ended
January
31,
2020,
was
limited
to
futures
contracts.
Realized
and
unrealized
gains
and
losses
on
derivatives
contracts
during
the
period
ended
January
31,
2020,
by
each
Fund
are
recorded
in
the
following
locations
on
the
Statement
of
Operations:
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
ABR
Dynamic
Short
Volatility
Fund
Investment
Adviser
Fees
Waived
Investment
Adviser
Expenses
Reimbursed
Other
Waivers
Total
Fees
Waived
and
Expenses
Reimbursed
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
$
94,378
$
–
$
14,601
$
108,979
ABR
Dynamic
Short
Volatility
Fund
63,824
41,522
11,001
116,347
U.S.
Government
Obligations
Purchases
Sales
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
$
–
$
–
ABR
Dynamic
Short
Volatility
Fund
15,086,801
13,595,433
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
ABR
Dynamic
Short
Volatility
Fund
Futures
Contracts
$
239,533,687
$
14,818,001
Location:
Equity
Contracts
Net
realized
gain
(loss)
on:
Futures
$
1,092,552
Total
net
realized
gain
(loss)
$
1,092,552
Net
change
in
unrealized
appreciation
(depreciation)
on:
Futures
$
(333,631)
Total
net
change
in
unrealized
appreciation
(depreciation)
$
(333,631)
Location:
Equity
Contracts
Net
realized
gain
(loss)
on:
Futures
$
694,556
Total
net
realized
gain
(loss)
$
694,556
Net
change
in
unrealized
appreciation
(depreciation)
on:
Futures
$
(209,702)
Total
net
change
in
unrealized
appreciation
(depreciation)
$
(209,702)
ABR
Funds
NOTES
TO
FINANCIAL
STATEMENTS
January
31,
2020
Federal
Income
Tax
As
of
January
31,
2020,
the
cost
of
investments
for
federal
income
tax
purposes
is
substantially
the
same
as
for
financial
statement
purposes
and
components
of
net
unrealized
appreciation
were
as
follows:
As
of
July
31,
2019,
distributable
earnings
(accumulated
loss)
on
a
tax
basis
for
the
Funds
were
as
follows:
The
difference
between
components
of
distributable
earnings
on
a
tax
basis
and
the
amounts
reflected
in
the
Statements
of
Assets
and
Liabilities
are
primarily
due
to
wash
sales
and
futures
mark-to-market.
For
tax
purposes,
the
prior
year
late-year
ordinary
losses
were
$248,473
and
$13,304
for
the
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
and
ABR
Dynamic
Short
Volatility
Fund,
respectively
(realized
during
the
period
January
1,
2019
through
July
31,
2019).
These
losses
were
recognized
for
tax
purposes
on
the
first
business
day
of
each
Fund’s
current
fiscal
year,
August
1,
2019.
Subsequent
Events
Subsequent
events
occurring
after
the
date
of
this
report
through
the
date
these
financial
statements
were
issued
have
been
evaluated
for
potential
impact,
and
each
Fund
has
had
no
such
events.
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
$
46,490
$
(384)
$
46,106
ABR
Dynamic
Short
Volatility
Fund
306,792
–
306,792
Undistributed
Long-Term
Gain
Capital
and
Other
Losses
Unrealized
Appreciation
(Depreciation)
Total
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
$
336,672
$
(248,473)
$
(27,156)
$
61,043
ABR
Dynamic
Short
Volatility
Fund
9,846
(13,304)
104,471
101,013
ABR
Funds
ADDITIONAL
INFORMATION
January
31,
2020
Proxy
Voting
Information
A
description
of
the
policies
and
procedures
that
each
Fund
uses
to
determine
how
to
vote
proxies
relating
to
securities
held
in
each
Fund’s
portfolio
is
available,
without
charge
and
upon
request,
by
calling
(855)
422-4518
and
on
the
U.S.
Securities
and
Exchange
Commission’s
(the
“SEC”)
website
at
www.sec.gov.
Each
Fund’s
proxy
voting
record
for
the
most
recent
twelve-month
period
ended
June
30
is
available,
without
charge
and
upon
request,
by
calling
(855)
422-4518
and
on
the
SEC’s
website
at
www.sec.gov.
Availability
of
Quarterly
Portfolio
Schedules
Each
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.
These
filings
are
available,
without
charge
and
upon
request
on
the
SEC’s
website
at
www.sec.gov
or
may
be
reviewed
and
copied
at
the
SEC’s
Public
Reference
Room
in
Washington,
D.C.
Information
on
the
operation
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Shareholder
Expense
Example
As
a
shareholder
of
the
Funds
,
you
incur
ongoing
costs,
including
management
fees,
distribution
and/or
service
(12b-1)
fees
(for
Investor
Shares
only)
and
other
Fund
expenses.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Funds
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
from
August
1,
2019
through
January
31,
2020.
Actual
Expenses
–
The
first
line
of
the
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
line,
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
first
line
under
the
heading
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
the
period.
Hypothetical
Example
for
Comparison
Purposes
–
The
second
line
of
the
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
each
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
each
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
each
Fund
and
other
funds.
To
do
so,
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.
Therefore,
the
second
line
of
the
table
is
useful
in
comparing
ongoing
costs
only
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
ABR
Funds
ADDITIONAL
INFORMATION
January
31,
2020
Beginning
Account
Value
August
1,
2019
Ending
Account
Value
January
31,
2020
Expenses
Paid
During
Period*
Annualized
Expense
Ratio*
ABR
Dynamic
Blend
Equity
&
Volatility
Fund
Institutional
Shares
Actual
$
1,000.00
$
1,017.04
$
10.14
2.00%
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,015.08
$
10.13
2.00%
Investor
Shares
Actual
$
1,000.00
$
1,016.30
$
11.40
2.25%
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,013.83
$
11.39
2.25%
ABR
Dynamic
Short
Volatility
Fund
Institutional
Shares
Actual
$
1,000.00
$
1,186.67
$
13.74
2.50%
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,012.57
$
12.65
2.50%
Investor
Shares
Actual
$
1,000.00
$
1,186.35
$
15.11
2.75%
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,011.31
$
13.90
2.75%
*
Expenses
are
equal
to
the
Fund’s
annualized
expense
ratio
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half-year
(184)
divided
by
366
to
reflect
the
half-year
period.
ABR
Funds
FOR
MORE
INFORMATION:
P.O.
Box
588
Portland,
ME
04112
(855)
422-4518
(toll
free)
INVESTMENT
ADVISER
ABR
Dynamic
Funds,
LLC
48
Wall
Street
New
York,
NY
10005
TRANSFER
AGENT
Apex
Fund
Services
P.O.
Box
588
Portland,
ME
04112
www.theapexgroup.com
DISTRIBUTOR
Foreside
Fund
Services,
LLC
Three
Canal
Plaza,
Suite
100
Portland,
Maine
04101
www.foreside.com
This
report
is
submitted
for
the
general
information
of
the
shareholders
of
the
Funds.
It
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
an
effective
prospectus,
which
includes
information
regarding
the
Funds’
risks,
objectives,
fees
and
expenses,
experience
of
its
management,
and
other
information.
For
the
most
recent
month-end
performance
and
current
fund
prices,
please
call
(855)
422-4518.
227-SAR-0120
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
ITEM 6. INVESTMENTS.
(a)
Included as part of report to shareholders under Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Registrant does not accept nominees to the board of trustees from shareholders.
ITEM 11. CONTROLS AND PROCEDURES
(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act are effective, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in
Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report 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
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) of the Act, and Section 302 of the Sarbanes-Oxley Act of 2002. (Exhibits filed herewith)
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) of the Act, and Section 906 of the Sarbanes-Oxley Act of 2002. (Exhibit 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 Forum Funds II
| By: | /s/ Jessica Chase | |
| | Jessica Chase, Principal Executive Officer | |
| | | |
| Date: | March 9, 2020 | |
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: | /s/ Jessica Chase | |
| | Jessica Chase, Principal Executive Officer | |
| | | |
| Date: | March 9, 2020 | |
| By: | /s/ Karen Shaw | |
| | Karen Shaw, Principal Financial Officer | |
| | | |
| Date: | March 9, 2020 | |
