N-Q 1 dnq.htm dnq.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-22842

FORUM FUNDS II
Three Canal Plaza, Suite 600
Portland, Maine 04101

Stacey E. Hong, Principal Executive Officer
Three Canal Plaza, Suite 600
Portland, Maine 04101
207-347-2000

Date of fiscal year end: December 31

Date of reporting period: January 1, 2014 – March 31, 2014
 
 
 
 
 
 
Item 1.  Schedule of Investments.
 
PHOCAS REAL ESTATE FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2014 (Unaudited)
 
 
Shares
  
Security
Description
  
Value
  
 
Common Stock (REITs) - 97.7%
Apartments - 11.5%
 
3,786
  
American Campus Communities, Inc.
  
$
141,407
  
 
3,666
  
AvalonBay Communities, Inc.
  
481,419
  
 
2,926
  
BRE Properties, Inc.
  
183,694
  
 
987
  
Essex Property Trust, Inc.
  
167,840
  
   
974,360
  
Commercial Financing - 2.6%
 
13,563
  
NorthStar Realty Finance Corp.
  
218,907
  
       
Diversified - 6.5%
 
9,312
  
Coresite Realty Corp.
  
288,672
  
 
2,650
  
Vornado Realty Trust
  
261,184
  
   
549,856
  
Freestanding - 2.5%
 
5,187
  
Realty Income Corp.
  
211,941
  
       
Health Care - 8.0%
 
6,995
  
Aviv REIT, Inc.
  
171,028
  
 
10,092
  
Sabra Health Care REIT, Inc.
  
281,466
  
 
3,678
  
Ventas, Inc.
  
222,776
  
   
675,270
  
Industrial - 6.6%
 
17,152
  
First Industrial Realty Trust, Inc.
  
331,377
  
 
5,629
  
Prologis, Inc.
  
229,832
  
   
561,209
  
Infrastructure - 5.1%
 
5,315
  
American Tower Corp.
  
435,139
  
       
Lodging/Resorts - 8.1%
 
9,211
  
Pebblebrook Hotel Trust
  
311,056
  
 
37,016
  
Strategic Hotels & Resorts, Inc. (a)
  
377,193
  
   
688,249
  
Manufactured Homes - 1.8%
 
3,290
  
Sun Communities, Inc.
  
148,346
  
       
Mixed - 2.0%
 
13,421
  
First Potomac Realty Trust
  
173,399
  
       
Office - 15.3%
 
2,588
  
Boston Properties, Inc.
    296,404  
 
7,606
  
Hudson Pacific Properties, Inc.
  
175,470
  
 
6,985
  
Kilroy Realty Corp.
  
409,181
  
 
4,097
  
SL Green Realty Corp.
  
412,240
  
   
1,293,295
  
Regional Malls - 14.4%
 
12,654
  
General Growth Properties, Inc.
  
278,388
  
 
5,712
  
Simon Property Group, Inc.
  
936,768
  
   
1,215,156
  
Self Storage - 6.0%
 
10,379
  
Extra Space Storage, Inc.
  
503,485
  
       
Shopping Centers - 4.2%
 
9,413
  
Acadia Realty Trust
  
248,315
  
 
4,778
  
Kimco Realty Corp.
  
104,543
  
   
352,858
  
Timber - 3.1%
 
8,926
  
Weyerhaeuser Co.
  
261,978
  
       
Total Common Stock (REITs)
(Cost $6,158,487)
  
8,263,448
  
 
Money Market Fund - 1.8%
 
151,769
  
Dreyfus Cash Management, 0.03% (b) (Cost $151,769)
  
151,769
  
       
Total Investments - 99.5%
(Cost $6,310,256)*
  
$
8,415,217
  
Other Assets & Liabilities, Net – 0.5%
  
40,141
  
Net Assets – 100.0%
  
$
8,455,358
  
 
REIT
Real Estate Investment Trust
(a)
Non-income producing security.
(b)
Variable rate security. Rate presented is as of March 31, 2014.

 
*  Cost for federal income tax purposes is substantially the same as for financial statement purposes and net unrealized appreciation consists of:
 
Gross Unrealized Appreciation
  
$
2,161,020
  
Gross Unrealized Depreciation
    
(56,059
)
Net Unrealized Appreciation
  
$
2,104,961
  
 
The Fund 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
 
Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
 
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2014.
 
Valuation Inputs
  
Investments in Securities
Level 1 - Quoted Prices
  
$
8,263,448
  
Level 2 - Other Significant Observable Inputs
    
151,769
  
Level 3 - Significant Unobservable Inputs
    
-
  
Total
  
$
8,415,217
  
 
The Level 1 value displayed in this table is Common Stock. The Level 2 valued displayed in this table is a Money Market Fund. Refer to the Schedule of Investments for a further breakout of each security by industry.
 
There were no transfers between Level 1, Level 2 and Level 3 for the period ended March 31, 2014.
 
THE PORTFOLIO OF INVESTMENTS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS WHICH ARE INCLUDED IN THE FUND’S AUDITED ANNUAL REPORT OR SEMI-ANNUAL REPORT. THESE REPORTS INCLUDE ADDITIONAL INFORMATION ABOUT THE FUND’S SECURITY VALUATION POLICIES AND ABOUT CERTAIN SECURITY TYPES INVESTED BY THE FUND.
 
 
 
 
Item 2.  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 these disclosure 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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 

Item 3.  Exhibits
Certifications as required by Rule 30a-2(a) under the Act.

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.


FORUM FUNDS II
 
By:  /s/ Stacey E. Hong   
  Stacey E. Hong, Principal Executive Officer   
     
Date:  May 6, 2014  

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/ Stacey E. Hong   
  Stacey E. Hong, Principal Executive Officer   
     
Date:  May 6, 2014  
 
By:  /s/ Karen Shaw  
  Karen Shaw, Principal Financial Officer  
     
Date:  May 6, 2014