N-Q 1 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

Jessica Chase, 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: July 1, 2016 – September 30, 2016

 
Item 1.  Schedule of Investments.
PHOCAS REAL ESTATE FUND
SCHEDULE OF INVESTMENTS (Unaudited)
SEPTEMBER 30, 2016
 
 
Shares
  
Security
Description
  
Value
  
Common Stock (REITs) - 95.6%
Apartments - 13.9%
 
4,037
  
AvalonBay Communities, Inc.
$
717,940
  
 
2,803
  
Camden Property Trust
  
234,723
  
 
5,110
  
Equity Residential
  
328,727
  
 
2,046
  
Essex Property Trust, Inc.
  
455,644
  
   
1,737,034
  
Data Centers - 6.7%
 
5,915
  
CoreSite Realty Corp.
  
437,946
  
 
7,439
  
QTS Realty Trust, Inc., Class A REIT
  
393,151
  
   
831,097
  
Diversified - 3.4%
 
4,151
  
Vornado Realty Trust
  
420,123
  
Diversified Financials - 1.3%
 
8,548
  
Colony Capital, Inc. REIT, Class A
  
155,830
  
Free Standing - 3.2%
 
7,749
  
Seritage Growth Properties REIT, Class A
  
392,720
  
Health Care - 9.8%
 
7,186
  
Healthcare Realty Trust, Inc. REIT
  
244,755
  
 
11,113
  
Sabra Health Care REIT, Inc.
  
279,825
  
 
4,052
  
Ventas, Inc.
  
286,193
  
 
5,514
  
Welltower, Inc. REIT
  
412,282
  
   
1,223,055
  
Industrial - 9.2%
 
18,885
  
First Industrial Realty Trust, Inc.
  
532,935
  
 
14,106
  
Rexford Industrial Realty, Inc. REIT
  
322,886
  
 
11,736
  
STAG Industrial, Inc.
  
287,649
  
   
1,143,470
  
Lodging/Resorts - 1.2%
 
7,742
  
Chatham Lodging Trust
  
149,033
  
Manufactured Homes - 2.3%
 
3,623
  
Sun Communities, Inc.
  
284,333
  
Office - 20.7%
 
7,121
  
Alexandria Real Estate Equities, Inc.
  
774,551
  
 
2,851
  
Boston Properties, Inc.
  
388,563
  
 
12,079
  
Hudson Pacific Properties, Inc.
  
397,037
  
 
7,695
  
Kilroy Realty Corp.
  
533,648
  
 
4,512
  
SL Green Realty Corp.
  
487,747
  
   
2,581,546
  
Regional Malls - 9.1%
 
5,502
  
Simon Property Group, Inc.
  
1,138,969
  
 
Shares
  
Security
Description
  
Value
  
Self Storage - 8.5%
 
9,730
  
Extra Space Storage, Inc.
$
772,659
  
 
13,860
  
National Storage Affiliates Trust REIT
  
290,229
  
   
1,062,888
  
Shopping Centers - 6.3%
 
13,714
  
Acadia Realty Trust
  
496,995
  
 
3,787
  
Regency Centers Corp.
  
293,455
  
   
790,450
  
Total Common Stock (REITs)
(Cost $8,318,505)
  
11,910,548
  
Total Investments - 95.6%
(Cost $8,318,505)*
$
11,910,548
  
Other Assets & Liabilities, Net – 4.4%
  
545,407
  
Net Assets – 100.0%
$
12,455,955
  
 
REIT
Real Estate Investment Trust
 
*  Cost for federal income tax purposes is substantially the same as for financial statement purposes and net unrealized appreciation consists of:
Gross Unrealized Appreciation
  
$
3,749,401
  
Gross Unrealized Depreciation
    
(157,358
)
Net Unrealized Appreciation
  
$
3,592,043
  
 
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 September 30, 2016.
Valuation Inputs
  
Investments in Securities
Level 1 - Quoted Prices
  
$
11,910,548
  
Level 2 - Other Significant Observable Inputs
    
-
  
Level 3 - Significant Unobservable Inputs
    
-
  
Total
  
$
11,910,548
  
 
The Level 1 value displayed in this table is Common Stock (REITs). Refer to this Schedule of Investments for a further breakout of each security by industry.
The Fund utilizes the end of period methodology when determining transfers. There were no transfers among Level 1, Level 2 and Level 3 for the period ended September 30, 2016.
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/ Jessica Chase  
 
Jessica Chase, Principal Executive Officer
  
     
Date
October 31, 2016
  

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
October 31, 2016
  

By
 /s/ Jessica Chase  
 
Karen Shaw, Principal Financial Officer
  
     
Date
October 31, 2016