RiverNorth Flexible Municipal Income Fund II Inc Dossier
Qualitative Analysis
Business overview
RiverNorth Flexible Municipal Income Fund II, Inc. (NYSE: RFMZ) is a diversified, closed-end management investment company that commenced operations on February 24, 2021. The Fund's primary investment objective is to provide current income exempt from regular U.S. federal income taxes, with a secondary objective of total return. To achieve these objectives, the Fund dynamically allocates its managed assets between two principal strategies: the Tactical Municipal Closed-End Fund (CEF) Strategy (managed by RiverNorth Capital Management, LLC) and the Municipal Bond Income Strategy (managed by MacKay Shields LLC). The Tactical CEF Strategy opportunistically invests in municipal closed-end funds and exchange-traded funds to capture value from discount and premium spreads, while the Municipal Bond Income Strategy primarily invests directly in municipal debt securities. Under normal market conditions, the Fund allocates 25% to 65% of its assets to the Tactical CEF Strategy and 35% to 75% to the Municipal Bond Income Strategy.
Research as of 20 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
The fund maintains a Level Distribution Policy, setting monthly distributions to provide compelling tax-exempt income to shareholders. For the period following December 31, 2024, the distribution was set at 6.75% of the fund's NAV at that date.
Expected impact: Provides predictable, tax-advantaged monthly cash flows to investors, supporting secondary market demand and helping manage the market price discount relative to NAV.
Active allocation of managed assets between two principal strategies: the Tactical Municipal Closed-End Fund (CEF) Strategy (managed by RiverNorth, targeting 25% to 65% of assets) and the Municipal Bond Income Strategy (managed by MacKay Shields, targeting 35% to 75% of assets).
Expected impact: Aims to capture alpha from pricing discrepancies (discounts and premiums) in the CEF market while maintaining a core exposure to tax-exempt municipal bonds.