As filed with the Securities and Exchange Commission on February 12, 2021
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: June 30
Date of reporting period: July 1, 2020 – December 31, 2020
ITEM 1. REPORT TO STOCKHOLDERS.
December
31,
2020
(Unaudited)
Beginning
on
January
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
paper
copies
of
the
Fund’s
shareholder
reports
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
paper
copies
of
the
reports
from
the
Fund
or
from
your
financial
intermediary,
such
as
a
broker-dealer
or
bank.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
You
may
elect
to
receive
shareholder
reports
and
other
communications
from
the
Fund
or
your
financial
intermediary
electronically
by
contacting
the
Fund
at
(844)
805-5628,
acuitas.ta@apexfs.com,
or
by
contacting
your
financial
intermediary
directly.
You
may
elect
to
receive
all
future
reports
in
paper
free
of
charge.
You
can
inform
the
Fund
or
your
financial
intermediary
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports
by
contacting
the
Fund
at
(844)
805-5628,
acuitas.ta@apexfs.com,
or
by
contacting
your
financial
intermediary
directly.
Schedule
of
Investments
1
Statement
of
Assets
and
Liabilities
4
Statement
of
Operations
5
Statements
of
Changes
in
Net
Assets
6
Financial
Highlights
7
Notes
to
Financial
Statements
8
Additional
Information
12
ACUITAS
US
MICROCAP
FUND
SCHEDULE
OF
INVESTMENTS
December
31,
2020
See
Notes
to
Financial
Statements.
Shares
Security
Description
Value
Common
Stock
-
95.2%
Communications
-
0.3%
1,300
ATN
International,
Inc.
$
54,288
3,300
Cambium
Networks
Corp.
(a)
82,764
137,052
Consumer
Discretionary
-
9.4%
2,700
At
Home
Group,
Inc.
(a)
41,742
5,448
CarParts.com,
Inc.
(a)
67,501
19,200
Clean
Energy
Fuels
Corp.
(a)
150,912
98,290
Fluent,
Inc.
(a)
521,920
11,900
Green
Brick
Partners,
Inc.
(a)
273,224
4,300
Haverty
Furniture
Cos.,
Inc.
118,981
1,700
Hooker
Furniture
Corp.
54,825
3,400
Huami
Corp.,
ADR
(a)
40,290
60,130
Interface,
Inc.
631,365
3,600
Lazydays
Holdings,
Inc.
(a)
58,500
7,800
Liquidity
Services,
Inc.
(a)
124,098
1,400
M/I
Homes,
Inc.
(a)
62,006
2,000
MarineMax,
Inc.
(a)
70,060
27,461
Motorcar
Parts
of
America,
Inc.
(a)
538,785
500
Overstock.com,
Inc.
(a)
23,985
5,486
Purple
Innovation,
Inc.
(a)
180,709
7,497
The
Children's
Place,
Inc.
(a)
375,599
59,099
Tilly's,
Inc.,
Class A
482,248
6,200
Universal
Technical
Institute,
Inc.
(a)
40,052
3,400
Vista
Outdoor,
Inc.
(a)
80,784
3,112
Winmark
Corp.
578,209
40,900
ZAGG,
Inc.
(a)
170,553
4,686,348
Consumer
Staples
-
1.8%
1,300
Ingles
Markets,
Inc.,
Class A
55,458
3,660
MGP
Ingredients,
Inc.
172,240
2,000
Seneca
Foods
Corp.,
Class A
(a)
79,800
3,500
SpartanNash
Co.
60,935
7,590
The
Chefs'
Warehouse,
Inc.
(a)
194,987
15,748
Village
Super
Market,
Inc.,
Class A
347,401
910,821
Energy
-
4.0%
9,850
Bonanza
Creek
Energy,
Inc.
(a)
190,400
28,425
Geospace
Technologies
Corp.
(a)
243,318
21,085
Natural
Gas
Services
Group,
Inc.
(a)
199,886
34,300
Newpark
Resources,
Inc.
(a)
65,856
15,400
Oil
States
International,
Inc.
(a)
77,308
32,860
Par
Pacific
Holdings,
Inc.
(a)
459,383
9,090
Stabilis
Solutions,
Inc.
(a)
24,997
69,199
SunCoke
Energy,
Inc.
301,016
18,020
Trecora
Resources
(a)
125,960
169,600
VAALCO
Energy,
Inc.
(a)
300,192
1,988,316
Financial
Services
-
14.1%
10,110
B
Riley
Financial,
Inc.
447,064
17,760
Bryn
Mawr
Bank
Corp.
543,367
3,600
Central
Valley
Community
Bancorp
53,604
3,700
ConnectOne
Bancorp,
Inc.
73,223
19,950
Customers
Bancorp,
Inc.
(a)
362,691
6,248
Encore
Capital
Group,
Inc.
(a)
243,360
8,400
Enova
International,
Inc.
(a)
208,068
3,500
Enterprise
Financial
Services
Corp.
122,325
4,700
Financial
Institutions,
Inc.
105,750
6,600
First
Foundation,
Inc.
132,000
6,000
First
Internet
Bancorp
172,440
5,800
Forterra,
Inc.
(a)
99,731
11,100
Global
Medical
REIT,
Inc.
144,966
42,227
Great
Elm
Capital
Corp.
152,017
Shares
Security
Description
Value
Financial
Services
-
14.1%
(continued)
3,800
HomeStreet,
Inc.
$
128,250
6,950
Horizon
Bancorp,
Inc.
110,227
2,000
I3
Verticals,
Inc.,
Class A
(a)
66,400
4,982
James
River
Group
Holdings,
Ltd.
244,865
5,400
Kearny
Financial
Corp.
57,024
7,800
Lakeland
Bancorp,
Inc.
99,060
7,200
Luther
Burbank
Corp.
70,560
3,900
Marlin
Business
Services
Corp.
47,736
42,180
Medallion
Financial
Corp.
(a)
206,682
19,507
NMI
Holdings,
Inc.,
Class A
(a)
441,834
15,980
Northrim
BanCorp,
Inc.
542,521
8,900
OP
Bancorp
68,530
4,687
Premier
Financial
Bancorp,
Inc.
62,290
6,835
Premier
Financial
Corp.
157,205
5,900
RBB
Bancorp
90,742
10,120
Regional
Management
Corp.
302,183
5,070
Stewart
Information
Services
Corp.
245,185
2,250
Texas
Capital
Bancshares,
Inc.
(a)
133,875
4,400
The
Bancorp,
Inc.
(a)
60,060
5,600
The
First
of
Long
Island
Corp.
99,960
12,470
TriState
Capital
Holdings,
Inc.
(a)
216,978
8,660
Veritex
Holdings,
Inc.
222,216
1,300
Virtus
Investment
Partners,
Inc.
282,100
2,900
Washington
Trust
Bancorp,
Inc.
129,920
3,500
West
BanCorp,
Inc.
67,550
7,014,559
Health
Care
-
23.3%
3,174
Aerie
Pharmaceuticals,
Inc.
(a)
42,881
22,515
Affimed
NV
(a)
131,037
2,600
AnaptysBio,
Inc.
(a)
55,900
5,100
AngioDynamics,
Inc.
(a)
78,183
1,800
Anika
Therapeutics,
Inc.
(a)
81,468
1,957
AtriCure,
Inc.
(a)
108,946
6,402
Autolus
Therapeutics
PLC,
ADR
(a)
57,234
77,344
Avid
Bioservices,
Inc.
(a)
892,550
3,500
Avrobio,
Inc.
(a)
48,790
8,700
BioCryst
Pharmaceuticals,
Inc.
(a)
64,815
27,900
BioDelivery
Sciences
International,
Inc.
(a)
117,180
11,954
BioLife
Solutions,
Inc.
(a)
476,845
15,145
Biomerica,
Inc.
(a)
75,422
2,755
Cardiovascular
Systems,
Inc.
(a)
120,559
4,806
Castle
Biosciences,
Inc.
(a)
322,723
20,000
Catalyst
Pharmaceuticals,
Inc.
(a)
66,800
9,115
Centogene
NV
(a)
98,260
8,300
Champions
Oncology,
Inc.
(a)
89,557
51,530
ChromaDex
Corp.
(a)
247,344
5,300
Collegium
Pharmaceutical,
Inc.
(a)
106,159
12,600
Community
Health
Systems,
Inc.
(a)
93,618
1,800
Computer
Programs
and
Systems,
Inc.
48,312
4,100
Cue
Biopharma,
Inc.
(a)
51,291
13,800
Cymabay
Therapeutics,
Inc.
(a)
79,212
20,565
CytoSorbents
Corp.
(a)
163,903
1,930
DermTech,
Inc.
(a)
62,609
11,900
Dynavax
Technologies
Corp.
(a)
52,955
14,135
Epizyme,
Inc.
(a)
153,506
8,353
Esperion
Therapeutics,
Inc.
(a)
217,178
16,182
Evolent
Health,
Inc.,
Class A
(a)
259,397
4,735
Frequency
Therapeutics,
Inc.
(a)
166,956
18,655
GenMark
Diagnostics,
Inc.
(a)
272,363
19,900
GlycoMimetics,
Inc.
(a)
74,824
18,200
Harvard
Bioscience,
Inc.
(a)
78,078
6,320
Health
Catalyst,
Inc.
(a)
275,110
3,553
Inmode,
Ltd.
(a)
168,696
ACUITAS
US
MICROCAP
FUND
SCHEDULE
OF
INVESTMENTS
December
31,
2020
See
Notes
to
Financial
Statements.
Shares
Security
Description
Value
Health
Care
-
23.3%
(continued)
2,640
Inogen,
Inc.
(a)
$
117,955
1,600
Intellia
Therapeutics,
Inc.
(a)
87,040
15,997
IntriCon
Corp.
(a)
289,546
14,500
Kadmon
Holdings,
Inc.
(a)
60,175
5,100
Kala
Pharmaceuticals,
Inc.
(a)
34,578
2,000
Kura
Oncology,
Inc.
(a)
65,320
23,500
MannKind
Corp.
(a)
73,555
20,900
MEI
Pharma,
Inc.
(a)
55,176
22,681
Meridian
Bioscience,
Inc.
(a)
423,908
43,835
MiMedx
Group,
Inc.
(a)
398,022
31,268
Misonix,
Inc.
(a)
390,850
5,800
Molecular
Templates,
Inc.
(a)
54,462
8,500
Myriad
Genetics,
Inc.
(a)
168,088
20,055
Neuronetics,
Inc.
(a)
222,811
4,400
OraSure
Technologies,
Inc.
(a)
46,574
46,647
Organogenesis
Holdings,
Inc.
(a)
351,252
6,058
OrthoPediatrics
Corp.
(a)
249,893
5,900
Owens
&
Minor,
Inc.
159,595
7,135
Psychemedics
Corp.
36,317
6,268
Quanterix
Corp.
(a)
291,462
23,950
Quotient,
Ltd.
(a)
124,780
3,500
RadNet,
Inc.
(a)
68,495
18,952
Repro-Med
Systems,
Inc.
(a)
114,091
11,720
SI-BONE,
Inc.
(a)
350,428
81,260
SIGA
Technologies,
Inc.
(a)
590,760
1,856
STAAR
Surgical
Co.
(a)
147,032
7,839
The
Joint
Corp.
(a)
205,852
4,600
Triple-S
Management
Corp.,
Class B
(a)
98,210
4,900
Vanda
Pharmaceuticals,
Inc.
(a)
64,386
15,140
Vericel
Corp.
(a)
467,523
6,800
X4
Pharmaceuticals,
Inc.
(a)
43,724
12,446
Xenon
Pharmaceuticals,
Inc.
(a)
191,419
23,700
ZIOPHARM
Oncology,
Inc.
(a)
59,724
11,603,664
Industrials
-
2.5%
11,703
Atkore
International
Group,
Inc.
(a)
481,110
15,584
Caesarstone,
Ltd.
200,878
3,100
CAI
International,
Inc.
96,844
3,500
Danaos
Corp.
(a)
75,005
6,200
Modine
Manufacturing
Co.
(a)
77,872
5,300
Myers
Industries,
Inc.
110,134
10,000
Ranpak
Holdings
Corp.
(a)
134,400
7,700
US
Xpress
Enterprises,
Inc.,
Class A
(a)
52,668
1,228,911
Materials
&
Processing
-
8.6%
12,810
AdvanSix,
Inc.
(a)
256,072
6,560
Apogee
Enterprises,
Inc.
207,821
16,200
Armstrong
Flooring,
Inc.
(a)
61,884
13,178
BlueLinx
Holdings,
Inc.
(a)
385,588
4,450
Chase
Corp.
449,495
1,600
Clearwater
Paper
Corp.
(a)
60,400
4,900
Eldorado
Gold
Corp.
(a)
65,023
1,300
Hawkins,
Inc.
68,003
20,500
Insteel
Industries,
Inc.
456,535
3,200
Koppers
Holdings,
Inc.
(a)
99,712
3,200
L
B
Foster
Co.,
Class A
(a)
48,160
25,219
Landec
Corp.
(a)
273,626
1,600
Lawson
Products,
Inc.
(a)
81,456
3,610
Materion
Corp.
230,029
23,408
Northern
Technologies
International
Corp.
247,188
4,100
Northwest
Pipe
Co.
(a)
116,030
16,500
Rayonier
Advanced
Materials,
Inc.
(a)
107,580
14,600
TimkenSteel
Corp.
(a)
68,182
Shares
Security
Description
Value
Materials
&
Processing
-
8.6%
(continued)
13,316
UFP
Technologies,
Inc.
(a)
$
620,526
110,746
Venator
Materials
PLC
(a)
366,569
4,269,879
Producer
Durables
-
10.9%
6,055
Allied
Motion
Technologies,
Inc.
309,410
12,520
Argan,
Inc.
557,015
2,715
Barrett
Business
Services,
Inc.
185,190
7,715
CIRCOR
International,
Inc.
(a)
296,565
14,624
Columbus
McKinnon
Corp.
562,147
1,000
CRA
International,
Inc.
50,930
3,316
Cryoport,
Inc.
(a)
145,506
11,100
Great
Lakes
Dredge
&
Dock
Corp.
(a)
146,187
12,790
Harsco
Corp.
(a)
229,964
149,604
Hill
International,
Inc.
(a)
287,240
17,944
IES
Holdings,
Inc.
(a)
826,142
3,000
Powell
Industries,
Inc.
88,470
85,667
Radiant
Logistics,
Inc.
(a)
496,869
9,100
Sharps
Compliance
Corp.
(a)
85,995
32,480
The
Hackett
Group,
Inc.
467,387
8,000
Titan
Machinery,
Inc.
(a)
156,400
16,825
TransAct
Technologies,
Inc.
(a)
119,457
2,300
Vectrus,
Inc.
(a)
114,356
6,700
Vishay
Precision
Group,
Inc.
(a)
210,916
1,600
VSE
Corp.
61,584
5,397,730
Real
Estate
-
0.2%
5,600
UMH
Properties,
Inc.
REIT
82,936
Technology
-
20.1%
11,330
ADTRAN,
Inc.
167,344
19,480
Agilysys,
Inc.
(a)
747,642
20,424
Airgain,
Inc.
(a)
363,139
28,030
Akoustis
Technologies,
Inc.
(a)
342,807
28,605
AXT,
Inc.
(a)
273,750
4,700
Calix,
Inc.
(a)
139,872
11,100
Celestica,
Inc.
(a)
89,577
1,885
Cerence,
Inc.
(a)
189,405
9,240
CEVA,
Inc.
(a)
420,420
4,300
ChannelAdvisor
Corp.
(a)
68,714
3,700
Cohu,
Inc.
141,266
14,900
Conduent,
Inc.
(a)
71,520
3,000
Digital
Turbine,
Inc.
(a)
169,680
19,001
eGain
Corp.
(a)
224,402
4,850
ePlus,
Inc.
(a)
426,558
4,728
EverQuote,
Inc.,
Class A
(a)
176,591
9,872
GAN,
Ltd.
(a)
200,204
19,247
Ichor
Holdings,
Ltd.
(a)
580,201
1,700
Insight
Enterprises,
Inc.
(a)
129,353
37,850
Key
Tronic
Corp.
(a)
261,165
6,800
Kimball
Electronics,
Inc.
(a)
108,732
45,500
Limelight
Networks,
Inc.
(a)
181,545
7,600
MagnaChip
Semiconductor
Corp.
(a)
102,752
25,292
Magnite,
Inc.
(a)
776,717
5,300
Mitek
Systems,
Inc.
(a)
94,234
32,239
MiX
Telematics,
Ltd.,
ADR
405,889
34,325
NeoPhotonics
Corp.
(a)
312,014
4,553
Perficient,
Inc.
(a)
216,950
49,820
Photronics,
Inc.
(a)
555,991
11,734
QAD,
Inc.,
Class A
741,354
9,388
Radware,
Ltd.
(a)
260,517
9,672
Red
Violet,
Inc.
(a)
252,536
7,436
ShotSpotter,
Inc.
(a)
280,337
3,610
Smith
&
Wesson
Brands,
Inc.
64,078
20,100
TESSCO
Technologies,
Inc.
125,424
ACUITAS
US
MICROCAP
FUND
SCHEDULE
OF
INVESTMENTS
December
31,
2020
See
Notes
to
Financial
Statements.
At
December
31,
2020
,
the
Fund
held
the
following
exchange
traded
futures
contract:
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's investments
as
of
December
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.
* Other
Financial
Instruments
are
derivatives
not
reflected
in
the
Schedule
of
Investments,
such
as
futures at
period
end.
The
Level
1
value
displayed
in
this
table
is
Common
Stock.
The
Level
2
value
displayed
in
this
table
is
a
Money
Market
Fund.
Refer
to
this
Schedule
of
Investments
for
a
further
breakout
of
each
security
by
industry.
Shares
Security
Description
Value
Technology
-
20.1%
(continued)
10,200
TrueCar,
Inc.
(a)
$
42,840
3,300
Ultra
Clean
Holdings,
Inc.
(a)
102,795
8,100
USA
Technologies,
Inc.
(a)
84,888
5,200
Veeco
Instruments,
Inc.
(a)
90,272
9,983,475
Total
Common
Stock
(Cost
$35,945,846)
47,303,691
Shares
Security
Description
Value
Money
Market
Fund
-
4.5%
2,234,270
BlackRock
Liquidity
Funds
FedFund
Portfolio,
Institutional
Shares,
0.01%
(b)
(Cost
$2,234,270)
2,234,270
Investments,
at
value
-
99.7%
(Cost
$38,180,116)
$
49,537,961
Other
Assets
&
Liabilities,
Net
-
0.3%
148,907
Net
Assets
-
100.0%
$
49,686,868
ADR
American
Depositary
Receipt
PLC
Public
Limited
Company
REIT
Real
Estate
Investment
Trust
(a)
Non-income
producing
security.
(b)
Dividend
yield
changes
daily
to
reflect
current
market
conditions.
Rate
was
the
quoted
yield
as
of
December
31,
2020.
Contracts
Description
Exp.Date
Notional
Contract
Value
Value
Net
Unrealized
Appreciation
12
CME
E-mini
Russell
2000
Index
Future
03/19/21
$1,150,175
$1,184,880
$
34,705
Valuation
Inputs
Investments
in
Securities
Other
Financial
Instruments*
Level
1
-
Quoted
Prices
$
47,303,691
$
34,705
Level
2
-
Other
Significant
Observable
Inputs
2,234,270
–
Level
3
-
Significant
Unobservable
Inputs
–
–
Total
$
49,537,961
$
34,705
PORTFOLIO
HOLDINGS
%
of
Total
Investments
Communications
0.3%
Consumer
Discretionary
9.5%
Consumer
Staples
1.8%
Energy
4.0%
Financial
Services
14.2%
Health
Care
23.4%
Industrials
2.5%
Materials
&
Processing
8.6%
Producer
Durables
10.9%
Real
Estate
0.2%
Technology
20.1%
Money
Market
Fund
4.5%
100.0%
ACUITAS
US
MICROCAP
FUND
STATEMENT
OF
ASSETS
AND
LIABILITIES
December
31,
2020
See
Notes
to
Financial
Statements.
*
Shares
redeemed
or
exchanged
within
60
days
of
purchase
are
charged
a
1.00%
redemption
fee.
ASSETS
Investments,
at
value
(Cost
$38,180,116)
$
49,537,961
Deposits
with
broker
292,435
Receivables:
Fund
shares
sold
8,624
Investment
securities
sold
282,457
Dividends
17,790
Prepaid
expenses
13,362
Total
Assets
50,152,629
LIABILITIES
Payables:
Investment
securities
purchased
338,816
Fund
shares
redeemed
62,093
Accrued
Liabilities:
Investment
adviser
fees
20,857
Trustees’
fees
and
expenses
673
Fund
services
fees
15,296
Other
expenses
28,026
Total
Liabilities
465,761
NET
ASSETS
$
49,686,868
COMPONENTS
OF
NET
ASSETS
Paid-in
capital
$
48,069,738
Distributable
earnings
1,617,130
NET
ASSETS
$
49,686,868
SHARES
OF
BENEFICIAL
INTEREST
AT
NO
PAR
VALUE
(UNLIMITED
SHARES
AUTHORIZED)
Institutional
Shares
3,953,501
NET
ASSET
VALUE,
OFFERING
AND
REDEMPTION
PRICE
PER
SHARE*
Institutional
Shares
(based
on
net
assets
of
$49,686,868)
$
12.57
ACUITAS
US
MICROCAP
FUND
STATEMENT
OF
OPERATIONS
SIX
MONTHS
ENDED
DECEMBER
31,
2020
See
Notes
to
Financial
Statements.
INVESTMENT
INCOME
Dividend
income
(Net
of
foreign
withholding
taxes
of
$815)
$
230,481
Total
Investment
Income
230,481
EXPENSES
Investment
adviser
fees
264,008
Fund
services
fees
94,007
Shareholder
servicing
fees
20,110
Custodian
fees
13,320
Registration
fees
11,844
Professional
fees
28,315
Trustees'
fees
and
expenses
3,886
Interest
expense
45
Other
expenses
38,141
Total
Expenses
473,676
Fees
waived
(156,820)
Net
Expenses
316,856
NET
INVESTMENT
LOSS
(86,375)
NET
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
Net
realized
gain
on:
Investments
4,752,684
Futures
58,730
Net
realized
gain
4,811,414
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
10,848,165
Futures
34,705
Net
change
in
unrealized
appreciation
(depreciation)
10,882,870
NET
REALIZED
AND
UNREALIZED
GAIN
15,694,284
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
$
15,607,909
ACUITAS
US
MICROCAP
FUND
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
See
Notes
to
Financial
Statements.
For
the
Six
Months
Ended
December
31,
2020
For
the
Year
Ended
June
30,
2020
OPERATIONS
Net
investment
loss
$
(86,375)
$
(309,189)
Net
realized
gain
(loss)
4,811,414
(11,493,277)
Net
change
in
unrealized
appreciation
(depreciation)
10,882,870
(2,702,798)
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
15,607,909
(14,505,264)
DISTRIBUTIONS
TO
SHAREHOLDERS
Institutional
Shares
–
(76,614)
Total
Distributions
Paid
–
(76,614)
CAPITAL
SHARE
TRANSACTIONS
Sale
of
shares:
Institutional
Shares
2,129,813
10,600,855
Reinvestment
of
distributions:
Institutional
Shares
–
76,603
Redemption
of
shares:
Institutional
Shares
(8,534,211)
(33,277,864)
Redemption
fees:
Institutional
Shares
69
2,453
Decrease
in
Net
Assets
from
Capital
Share
Transactions
(6,404,329)
(22,597,953)
Increase
(Decrease)
in
Net
Assets
9,203,580
(37,179,831)
NET
ASSETS
Beginning
of
Period
40,483,288
77,663,119
End
of
Period
$
49,686,868
$
40,483,288
SHARE
TRANSACTIONS
Sale
of
shares:
Institutional
Shares
201,143
1,230,179
Reinvestment
of
distributions:
Institutional
Shares
–
7,073
Redemption
of
shares:
Institutional
Shares
(871,181)
(4,343,714)
Decrease
in
Shares
(670,038)
(3,106,462)
ACUITAS
US
MICROCAP
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
December
31,
2020
For
the
Years
Ended
June
30,
2020
2019
2018
2017
2016
INSTITUTIONAL
SHARES
NET
ASSET
VALUE,
Beginning
of
Period
$
8.76
$
10.05
$
14.17
$
12.57
$
10.38
$
11.27
INVESTMENT
OPERATIONS
Net
investment
loss
(a)
(0.02)
(0.05)
(0.09)
(0.12)
(0.09)
(0.08)
Net
realized
and
unrealized
gain
(loss)
3.83
(1.23)
(1.46)
2.19
2.39
(0.41)
Total
from
Investment
Operations
3.81
(1.28)
(1.55)
2.07
2.30
(0.49)
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
realized
gain
–
(0.01)
(2.57)
(0.47)
(0.11)
(0.40)
Total
Distributions
to
Shareholders
–
(0.01)
(2.57)
(0.47)
(0.11)
(0.40)
REDEMPTION
FEES(a)
0.00(b)
0.00(b)
0.00(b)
0.00(b)
0.00(b)
0.00(b)
NET
ASSET
VALUE,
End
of
Period
$
12.57
$
8.76
$
10.05
$
14.17
$
12.57
$
10.38
TOTAL
RETURN
43.49%(c)
(12.75)%
(9.68)%
16.77%
22.21%
(4.27)%
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Period
(000s
omitted)
$
49,687
$
40,483
$
77,663
$
108,339
$
87,690
$
66,156
Ratios
to
Average
Net
Assets:
Net
investment
loss
(0.41)%(d)
(0.47)%
(0.78)%
(0.91)%
(0.78)%
(0.80)%
Net
expenses
1.50%(d)
1.70%
1.70%
1.70%
1.70%
1.70%
Gross
expenses
(e)
2.24%(d)
2.03%
1.87%
1.80%
1.86%
2.04%
PORTFOLIO
TURNOVER
RATE
37%(c)
74%
108%
48%
50%
52%
(a)
Calculated
based
on
average
shares
outstanding
during
each
period.
(b)
Less
than
$0.01
per
share.
(c)
Not
annualized.
(d)
Annualized.
(e)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
ACUITAS
US
MICROCAP
FUND
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2020
Organization
The
Acuitas
US
Microcap
Fund
(the
“Fund”)
is
a
diversified
portfolio
of
Forum
Funds
II
(the
“Trust”).
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
the
Fund’s
shares
of
beneficial
interest
without
par
value.
The
Fund
currently
offers
two
classes
of
shares:
Institutional
Shares
and
Investor
Shares.
As
of
December
31,
2020,
Investor
Shares
had
not
commenced
operations.
The
Fund
seeks
capital
appreciation.
The
Fund
commenced
operations
on
July
18,
2014.
Summary
of
Significant
Accounting
Policies
The
Fund
is
an
investment
company
and
follows
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
the
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.
Futures
contracts
are
valued
at
the
day’s
settlement
price
on
the
exchange
where
the
contract
is
traded.
Exchange-traded
options
for
which
the
last
quoted
sale
price
is
outside
the
closing
bid
and
ask
price
will
be
valued
at
the
mean
of
the
closing
bid
and
ask
price.
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.
The
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
3,
believes
that
the
values
available
are
unreliable.
The
Trust’s
Valuation
Committee,
as
defined
in
the
Fund’s
registration
statement,
performs
certain
functions
as
they
relate
to
the
administration
and
oversight
of
the
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
the
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.
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
ACUITAS
US
MICROCAP
FUND
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2020
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
the
Fund’s
own
assumptions
in
determining
the
fair
value
of
investments).
The
aggregate
value
by
input
level,
as
of
December
31,
2020,
for
the
Fund’s
investments
is
included
at
the
end
of
the
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.
Interest
income
is
recorded
on
an
accrual
basis.
Premium
is
amortized
to
the
next
call
date
above
par
and
discount
is
accreted
to
maturity
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
–
The
Fund
may
purchase
index
futures
contracts
to
equitize
the
Fund’s
cash
position.
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
December
31,
2020,
for
the
Fund,
are
disclosed
in
the
Schedule
of
Investments.
Distributions
to
Shareholders
–
The
Fund
declares
any
dividends
from
net
investment
income
and
pays
them
annually.
Any
net
capital
gains
realized
by
the
Fund
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
the
Fund,
timing
differences
and
differing
characterizations
of
distributions
made
by
the
Fund.
Federal
Taxes
–
The
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
its
taxable
income
to
shareholders.
In
addition,
by
distributing
in
each
calendar
year
substantially
all
of
its
net
investment
income
and
capital
gains,
if
any,
the
Fund
will
not
be
subject
to
a
federal
excise
tax.
Therefore,
no
federal
income
or
excise
tax
provision
is
required.
The
Fund
files
a
U.S.
federal
income
and
excise
tax
return
as
required.
The
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
December
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.
Redemption
Fees
–
A
shareholder
who
redeems
or
exchanges
shares
within
60
days
of
purchase
will
incur
a
redemption
fee
of
1.00%
of
the
current
NAV
of
shares
redeemed
or
exchanged,
subject
to
certain
limitations.
The
fee
is
charged
for
the
benefit
of
the
remaining
shareholders
and
will
be
paid
to
the
Fund
to
help
offset
transaction
costs.
The
fee
is
accounted
for
as
an
addition
to
paid-in
capital.
The
Fund
reserves
the
right
to
modify
the
terms
of
or
terminate
the
fee
at
any
time.
There
are
limited
exceptions
to
the
imposition
of
the
redemption
fee.
Redemption
fees
incurred
for
the
Fund,
if
any,
are
reflected
on
the
Statements
of
Changes
in
Net
Assets.
ACUITAS
US
MICROCAP
FUND
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2020
Commitments
and
Contingencies
–
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
provide
general
indemnifications
by
the
Fund
to
the
counterparty
to
the
contract.
The
Fund’s
maximum
exposure
under
these
arrangements
is
dependent
on
future
claims
that
may
be
made
against
the
Fund
and,
therefore,
cannot
be
estimated;
however,
based
on
experience,
the
risk
of
loss
from
such
claims
is
considered
remote.
The
Fund
has
determined
that
none
of
these
arrangements
requires
disclosure
on
the
Fund’s
balance
sheet.
Fees
and
Expenses
Investment
Adviser
–
Acuitas
Investments,
LLC
(the
“Adviser”)
is
the
investment
adviser
to
the
Fund.
Pursuant
to
an
investment
advisory
agreement,
the
Adviser
receives
an
advisory
fee,
payable
monthly,
from
the
Fund
at
an
annual
rate
of
1.25%
of
the
Fund’s
average
daily
net
assets.
The
sub-advisory
fee,
calculated
as
a
percentage
of
the
Fund’s
average
daily
net
assets
managed
by
the
subadviser,
is
paid
by
the
Adviser.
Distribution
–
Foreside
Fund
Services,
LLC
serves
as
the
Fund’s
distributor
(the
“Distributor”).
The
Fund
has
adopted
a
Distribution
Plan
(the
“Plan”)
for
Investor
Shares
in
accordance
with
Rule
12b-1
of
the
Act.
Under
the
Plan,
the
Fund
pays
the
Distributor
and/or
any
other
entity
as
authorized
by
the
Board
a
fee
of
up
to
0.25%
of
the
average
daily
net
assets
of
Investor
Shares.
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.
Currently,
Investor
Shares
are
not
offered
for
sale,
therefore
the
Fund
is
not
currently
paying
12b-1
fees.
Other
Service
Providers
–
Apex
provides
fund
accounting,
fund
administration,
compliance
and
transfer
agency
services
to
the
Fund.
The
fees
related
to
these
services
are
included
in
Fund
services
fees
within
the
Statement
of
Operations.
Apex
also
provides
certain
shareholder
report
production
and
EDGAR
conversion
and
filing
services.
Pursuant
to
an
Apex
Services
Agreement,
the
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
the
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
the
Fund
is
disclosed
in
the
Statement
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
the
Fund.
Expense
Reimbursement
and
Fees
Waived
The
Adviser
has
contractually
agreed
to
waive
its
fees
and/or
reimburse
expenses
to
limit
total
annual
operating
expenses
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
acquired
fund
fees
and
expenses,
proxy
expenses
and
extraordinary
expenses)
of
Institutional
Shares
to
1.50%
and
Investor
Shares
to
1.75%
through
November
1,
2021.
Other
fund
service
providers
have
voluntarily
agreed
to
waive
a
portion
of
their
fees.
Voluntary
fee
waivers
may
be
reduced
or
eliminated
at
any
time.
For
the
period
ended
December
31,
2020,
the
fees
waived
and/or
reimbursed
expenses
were
as
follows:
The
Adviser
may
be
reimbursed
by
the
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
and
(ii)
the
expense
cap
in
place
at
the
time
the
fees/expenses
were
waived/reimbursed.
As
of
December
31,
2020,
$483,644
is
subject
to
recapture
by
the
adviser.
Other
waivers
are
not
eligible
for
recoupment.
Investment
Adviser
Fees
Waived
Other
Waivers
Total
Fees
Waived
and
Expenses
Reimbursed
$
146,173
$
10,647
$
156,820
ACUITAS
US
MICROCAP
FUND
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2020
Security
Transactions
The
cost
of
purchases
and
proceeds
from
sales
of
investment
securities
(including
maturities),
other
than
short-term
investments
during
the
period
ended
December
31,
2020,
totaled
$14,928,777
and
$22,378,644,
respectively.
Summary
of
Derivative
Activity
The
volume
of
open
derivative
positions
may
vary
on
a
daily
basis
as
the
Fund
transacts
derivative
contracts
in
order
to
achieve
the
exposure
desired
by
the
Adviser.
The
notional
value
of
activity
for
the
period
ended
December
31,
2020
,
for
futures
contracts
was
$2,435,265.
The
Fund’s
use
of
derivatives
for
the
period
ended
December
31,
2020
,
was
limited
to
futures
contracts.
Federal
Income
Tax
As
of
December
31,
2020,
the
cost
for
federal
income
tax
purposes
is
substantially
the
same
as
for
financial
statement
purposes
and
the
components
of
net
unrealized
depreciation
consists
of:
As
of
June
30,
2020,
distributable
earnings
on
a
tax
basis
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
investments
in
equity
return
of
capital,
real
estate
investment
trusts,
late
year
ordinary
losses
and
wash
sales.
For
tax
purposes,
the
deferred
late
year
ordinary
loss
was
$103,475
for
the
Fund
(realized
during
the
period
January
1,
2020
through
June
30,
2020).
This
loss
was
recognized
for
tax
purposes
on
the
first
business
day
of
the
Fund’s
current
fiscal
year,
July
1,
2020.
As
of
June
30,
2020,
the
Acuitas
US
Microcap
Fund
had
$8,186,432
of
available
short-term
capital
loss
carryforwards
and
$4,027,078
of
available
long-term
capital
loss
carryforwards
that
have
no
expiration
date.
Subsequent
Events
The
global
outbreak
of
the
COVID-19
virus
has
caused
negative
effects
on
many
companies,
sectors,
countries,
regions,
and
financial
markets
in
general,
and
uncertainty
exists
as
to
its
long-term
implications.
The
effects
of
the
pandemic
may
adversely
impact
the
Fund's
assets
and
performance.
The
financial
statements
do
not
include
any
adjustments
that
might
result
from
the
outcome
of
this
uncertainty.
Location:
Equity
Contracts
Net
realized
gain
(loss)
on:
Futures
$
58,730
Total
net
realized
gain
(loss)
$
58,730
Net
change
in
unrealized
appreciation
(depreciation)
on:
Futures
$
34,705
Total
net
change
in
unrealized
appreciation
(depreciation)
$
34,705
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
$
13,065,754
$
(1,707,909)
$
11,357,845
Capital
and
Other
Losses
Unrealized
Depreciation
Total
$
(12,316,985)
$
(1,673,794)
$
(13,990,779)
ACUITAS
US
MICROCAP
FUND
ADDITIONAL
INFORMATION
December
31,
2020
Liquidity
Risk
Management
Program
The
Fund
has
adopted
and
implemented
a
written
liquidity
risk
management
program,
as
required
by
Rule
22e-4
(the
“Liquidity
Rule”)
under
the
Investment
Company
Act
of
1940,
as
amended.
The
liquidity
risk
management
program
is
reasonably
designed
to
assess
and
manage
the
Fund’s
liquidity
risk,
taking
into
consideration,
among
other
factors,
the
Fund's
investment
strategy
and
the
liquidity
of
the
portfolio
investments
during
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources.
The
Board
approved
the
designation
of
the
Trust’s
Valuation
Committee
as
the
administrator
of
the
liquidity
risk
management
program
(the
“Program
Administrator”).
The
Program
Administrator
is
responsible
for
the
administration
and
oversight
of
the
program
and
for
reporting
to
the
Board
on
at
least
an
annual
basis
regarding,
among
other
things,
the
program’s
operation,
adequacy,
and
effectiveness.
The
Program
Administrator
assessed
the
Fund’s
liquidity
risk
profile
based
on
information
gathered
for
the
period
June
1,
2019
through
June
30,
2020
in
order
to
prepare
a
written
report
to
the
Board
for
review
at
its
meeting
held
on
September
10,
2020.
The
Program
Administrator’s
written
report
stated
that:
(i)
the
Fund
is
able
to
meet
redemptions
in
normal
and
reasonably
foreseeable
stressed
conditions
and
without
significant
dilution
of
remaining
shareholders’
interests
in
the
Fund;
(ii)
the
Fund's
strategy
is
appropriate
for
an
open-end
mutual
fund;
(iii)
the
liquidity
classification
determinations
regarding
the
Fund's
portfolio
investments,
which
take
into
account
a
variety
of
factors
and
may
incorporate
analysis
from
one
or
more
third-party
data
vendors,
remained
appropriate;
(iv)
the
Fund
did
not
approach
the
internal
triggers
set
forth
in
the
liquidity
risk
management
program
or
the
regulatory
percentage
limitation
(15%)
on
holdings
in
illiquid
investments;
(v)
it
continues
to
be
appropriate
to
not
set
a
“highly
liquid
investment
minimum”
for
the
Fund
because
the
Fund
primarily
holds
“highly
liquid
investments”;
and
(vi)
the
liquidity
risk
management
program
remains
reasonably
designed
and
adequately
implemented
to
prevent
violations
of
the
Liquidity
Rule.
The
report
also
reviewed
the
changes
to
the
Program
since
its
inception.
No
significant
liquidity
events
impacting
the
Fund
or
proposed
changes
to
the
Program
were
noted
in
the
report.
Proxy
Voting
Information
A
description
of
the
policies
and
procedures
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
securities
held
in
the
Fund’s
portfolio
is
available,
without
charge
and
upon
request,
by
calling
(844)
805-5628
and
on
the
U.S.
Securities
and
Exchange
Commission's
(the
"SEC")
website
at
www.sec.gov.
The
Fund’s
proxy
voting
record
for
the
most
recent
twelve-month
period
ended
June
30
is
available,
without
charge
and
upon
request,
by
calling
(844)
805-5628
and
on
the
SEC’s
website
at
www.sec.gov.
Availability
of
Quarterly
Portfolio
Schedules
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-PORT.
Forms
N-PORT
are
available
free
of
charge
on
the
SEC’s
website
at
www.sec.gov.
Shareholder
Expense
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
including
redemption
fees,
and
(2)
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
Fund,
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
July
1,
2020
through
December
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.
ACUITAS
US
MICROCAP
FUND
ADDITIONAL
INFORMATION
December
31,
2020
Hypothetical
Example
for
Comparison
Purposes
–
The
second
line
of
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
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
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
and
do
not
reflect
any
transactional
costs,
such
as
redemption
fees.
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.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
July
1,
2020
Ending
Account
Value
December
31,
2020
Expenses
Paid
During
Period*
Annualized
Expense
Ratio*
Institutional
Shares
Actual
$
1,000.00
$
1,434.93
$
9.21
1.50%
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,017.64
$
7.63
1.50%
*
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
365
to
reflect
the
half-year
period.
FOR
MORE
INFORMATION
Investment
Adviser
Acuitas
Investments,
LLC
520
Pike
Street,
Suite
1221
Seattle,
WA
98101
www.acuitasinvestments.com
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,
ME
04101
www.foreside.com
Acuitas
US
Microcap
Fund
P.O.
Box
588
Portland,
ME
04112
(844)
805-5628
This
report
is
submitted
for
the
general
information
of
the
shareholders
of
the
Fund.
It
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
an
effective
prospectus,
which
includes
information
regarding
the
Fund’s
risks,
objectives,
fees
and
expenses,
experience
of
its
management,
and
other
information.
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 Investment Company Act of 1940 (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)(3) Not applicable.
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: | February 12, 2021 | |
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: | February 12, 2021 | |
| By: | /s/ Karen Shaw | |
| | Karen Shaw, Principal Financial Officer | |
| | | |
| Date: | February 12, 2021 | |
