Forum Funds II

05/21/2026 | Press release | Distributed by Public on 05/21/2026 11:41

Semi-Annual Report by Investment Company (Form N-CSRS)

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
190 Middle Street, Suite 101
Portland, Maine 04101
Zachary Tackett, Principal Executive Officer
190 Middle Street, Suite 101
Portland, Maine 04101
207-347-2000
Date of fiscal year end: September 30
Date of reporting period: October 1, 2025 - March 31, 2026

ITEM 1. REPORT TO SHAREHOLDERS.
(a) A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act, as amended ("Act"), is attached hereto.

Baywood SociallyResponsible Fund

BVSIX

: Institutional Class

Semi-Annual Shareholder Report - March 31, 2026

Fund Overview

This semi-annual shareholder report contains important information about the Baywood SociallyResponsible Fund for the period of October 1, 2025, to March 31, 2026. You can find additional information about the Fund at https://www.skba.com/baywood-funds. You can also request this information by contacting us at (855) 409-2297.

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Institutional Class
$45
0.89%

How did the Fund perform in the last six months?

The one thing that remains clear in this environment is that increased levels of volatility will likely persist. Volatility is likely to permeate across inflation, the economy, politics and is likely to greatly affect financial markets as well. The broad market's strong return in the fourth quarter of 2025 compared to its roughly 4% decline in the first quarter reflects this volatility. The SociallyResponsible strategy outperformed the broad market during this volatility and generated positive returns in an overall down period.

The largest source of relative outperformance was in the IT sector whereby the Fund's holdings produced positive returns in the period while the Morningstar US Market TR Index holdings declined. The Fund's relative performance was further aided by the high concentration of IT stocks in the benchmark, which represent over 30%, while the Fund holds approximately 11%, given IT was one of the worst performing sectors for the benchmark in the period.

The strongest absolute contributors for both the value benchmark and the SociallyResponsible sectors came from the energy sector. The energy sector contribution to GDP is approximately 8% per year on average and having no representation of such a large contribution to the economy unnecessarily narrows diversification opportunities. Carefully curated companies provide a great benefit to the strategy without owning some of the more egregious environmental offenders. Companies like Texas Pacific Land Corporation, which is a real estate holding company that leases its property to a number of different companies. Texas Pacific was the top performing company in the strategy and most of its approximate 65% return in the first quarter came before the increases in the price of oil as investors recognized that Texas Pacific would benefit from having its land available for data centers collocated near energy sources with both energy and water rights, ideal for the current building boom in A.I.

In the communication sector, Verizon, a new holding for the quarter, and AT&T helped generate positive returns despite negative benchmark contribution. Both companies languished last year as the A.I. frenzy left these "boring" companies behind, yet what investors don't realize is that without these companies, the A.I. boom has no legs to stand on. Verizon, which was initiated in the quarter, has a dividend yield in excess of 5% and is well covered by its earnings - a stable ballast for these volatile markets. Should Verizon experience a pull-back in the price of its shares we are likely to continue to build our position. Both AT&T and Verizon contributed positively to returns in the quarter and we believe they are likely to continue to provide stability for the strategy in this volatile market.

In healthcare, our holdings in Avantor and Solventum were mostly responsible for the relative underperformance. Solventum, recently spun out of 3M, continues to transition into a stand-alone company. It recently completed the divestiture of its purification and filtration business which allowed it to pay down nearly 1/3 of its debt, while it temporarily carries higher separation costs. The mixed results pressured the price of its shares in the quarter but we believe these to be temporary in nature and maintain our holdings in Solventum. Some of the weakness from Solventum and Avantor were offset by our holding in Royal Philips, which we sold out of in the period for a strong gain.

Building a portfolio of companies that have been neglected by years of the markets' near-singular focus on a small group of technology giants has produced a great opportunity for investors in the SociallyResponsible fund. Owning companies whose fundamentals appear mispriced provides us with confidence navigating in what we believe are going to be volatile markets going forward.

For SKBA's in depth investment perspectives, please visit our website at www.skba.com.

Total Return Based on a $10,000 Investment

Table Summary
Date
Institutional ClassFootnote Reference*
Morningstar US Market TR Index
Morningstar US Large Value TR Index
03/31/16
$10,000
$10,000
$10,000
06/30/16
$10,314
$10,260
$10,436
09/30/16
$10,917
$10,696
$10,670
12/31/16
$11,530
$11,124
$11,496
03/31/17
$11,881
$11,781
$11,784
06/30/17
$11,927
$12,143
$11,838
09/30/17
$12,465
$12,692
$12,417
12/31/17
$13,458
$13,512
$13,230
03/31/18
$13,004
$13,429
$12,816
06/30/18
$13,290
$13,928
$12,875
09/30/18
$14,044
$14,933
$13,770
12/31/18
$11,752
$12,830
$12,449
03/31/19
$13,162
$14,638
$13,734
06/30/19
$13,731
$15,252
$14,161
09/30/19
$13,804
$15,447
$14,613
12/31/19
$14,873
$16,836
$15,649
03/31/20
$10,341
$13,373
$11,721
06/30/20
$12,094
$16,313
$13,180
09/30/20
$12,871
$17,820
$13,569
12/31/20
$15,502
$20,354
$15,552
03/31/21
$17,621
$21,578
$17,127
06/30/21
$18,725
$23,383
$17,782
09/30/21
$18,419
$23,391
$17,557
12/31/21
$19,670
$25,603
$18,894
03/31/22
$20,035
$24,239
$19,203
06/30/22
$17,616
$20,155
$17,637
09/30/22
$17,207
$19,232
$16,386
12/31/22
$19,528
$20,628
$18,944
03/31/23
$19,804
$22,154
$19,080
06/30/23
$20,252
$24,036
$19,854
09/30/23
$20,149
$23,270
$19,612
12/31/23
$22,010
$26,082
$21,184
03/31/24
$23,775
$28,751
$23,067
06/30/24
$23,796
$29,751
$22,932
09/30/24
$25,733
$31,555
$24,921
12/31/24
$25,221
$32,365
$24,296
03/31/25
$25,539
$30,865
$25,740
06/30/25
$26,158
$34,303
$25,971
09/30/25
$27,430
$37,080
$27,572
12/31/25
$27,570
$37,979
$28,714
03/31/26
$27,776
$36,391
$29,393
Footnote Description
Footnote*
Performance for Institutional Shares for periods prior to January 8, 2016, reflects the performance and expenses of City National Rochdale Socially Responsible Equity Fund, a series of City National Rochdale Funds (the "Predecessor Fund").

The above chart represents historical performance of a hypothetical $10,000 investment over the past 10 years.

Average Annual Total Returns

Table Summary
One Year
Five Year
Ten Year
Institutional ClassFootnote Reference*
8.76%
9.53%
10.76%
Morningstar US Market TR Index
17.90%
11.02%
13.79%
Morningstar US Large Value TR Index
14.19%
11.41%
11.38%
Footnote Description
Footnote*
Performance for Institutional Shares for periods prior to January 8, 2016, reflects the performance and expenses of City National Rochdale Socially Responsible Equity Fund, a series of City National Rochdale Funds (the "Predecessor Fund").

The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Fund Statistics

Table Summary
Total Net Assets
$26,362,999
# of Portfolio Holdings
52
Portfolio Turnover Rate
13%
Investment Advisory Fees (Net of fees waived)
$21,992

Top Ten Holdings

(% total investments)

Table Summary
Kontoor Brands, Inc.
4.05%
Texas Pacific Land Corp.
4.01%
W R Berkley Corp.
3.83%
Kinder Morgan, Inc.
3.29%
Healthcare Realty Trust, Inc. REIT
3.27%
AT&T, Inc.
3.23%
CME Group, Inc.
3.21%
Medtronic PLC
3.21%
American Express Co.
3.17%
NIKE, Inc., Class B
3.13%

* excluding cash equivalents

Sector Weightings

(% total investments)

Table Summary
Value
Value
Financials
21.6%
Health Care
17.9%
Technology
12.0%
Energy
8.7%
Consumer Discretionary
8.2%
Capital Goods / Industrials
7.3%
Consumer Staples
6.4%
Communication Services
5.0%
Real Estate
4.9%
Basic Materials
4.7%
Transportation
1.7%
Utilities
1.6%

* excluding cash equivalents

Where can I find additional information about the Fund?

Additional information is available by scanning the QR code or at https://www.skba.com/baywood-funds, including its:

  • prospectus

  • financial information

  • holdings

  • proxy voting information

Baywood SociallyResponsible Fund

BVSIX

: Institutional Class

Semi-Annual Shareholder Report - March 31, 2026

217S-BVSIX-26

Baywood ValuePlus Fund

BVPIX

: Institutional Class

Semi-Annual Shareholder Report - March 31, 2026

Fund Overview

This semi-annual shareholder report contains important information about the Baywood ValuePlus Fund for the period of October 1, 2025, to March 31, 2026. You can find additional information about the Fund at https://www.skba.com/baywood-funds. You can also request this information by contacting us at (855) 409-2297.

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Institutional Class
$36
0.70%

How did the Fund perform in the last six months?

With concentration comes risk and our benchmark proved this to be the case over the last six months ending in March. Baywood ValuePlus was underweight to the Morningstar US Market Index in the following sectors: communications, consumer discretionary and technology. It is worth noting that those three sectors house the "Magnificient 7" which generally has the effect of crowding out every other economic sector. As a result of such benchmark concentration, by being active, ValuePlus is commensurately overweight in everything else (Consumer Staples, Energy, Financials, Health Care, Industrials, Materials, Real Estate and Utilities). The strategy's outperformance in the period was in part related to what we owned but also related to what we did not own. ValuePlus had approximately half of the benchmark weight in communications and our positions increased about 7% versus flat for the benchmark. ValuePlus had a mere fourth of the benchmark's technology exposure with the companies held by the Fund also declining less than those of the benchmark. Those two differences in and of themselves contributed over 2% to the strategy's excess returns.

In terms of relative overweights, ValuePlus had approximately 50% greater exposure to healthcare compared with our benchmark; this contributed an additional 1% to excess returns. We were also overweight financials, energy and utilities, all of which contributed approximately 3% to excess returns in the period. While we were generally equal weight in industrials, our higher exposure to aerospace was another noteworthy contributor.

The two sectors worth mentioning due to their detraction from overall relative returns were consumer staples and materials. Within consumer staples, Diageo was the culprit while in materials, it was Graphic Packaging. Even in sectors in which we outperformed, there were some notable laggards: Kinder Morgan in energy, Corebridge in financials, Medtronic in healthcare and 3M in industrials. Yet that is the attraction of having an actively managed yet diversified portfolio. Not all companies behave in a similar fashion. We have what can be viewed as natural hedges in the portfolio from a true diversification standpoint. We cannot say that nearly half of our exposure is directly tied to AI and hyper-scaler growth. Nor would we want to. Not only do we have a more balanced exposure across economic sectors but exposure within sectors is also greater. For example, in healthcare we have exposure to a few select pharmaceuticals companies but also have exposure to medical equipment. In financials, we have exposure to lending institutions but also to insurance companies and exchanges, companies which behave very differently from one another. Within industrials, we have exposure to pro-cyclical companies but also to those not prone to economic weakness.

We report to you on a semi-annual basis. Our objectives are longer term and aim to capture mis-pricings in established companies that are temporary in nature. The companies we seek tend to reward shareholders in the form of dividends and also buybacks to a greater extent than the broad market. Since the composite's inception in 1989, the strategy has outperformed both value and broad market benchmarks while exhibiting lower risk than the market. The Fund is managed using the same disciplined investment process that has guided the strategy for nearly four decades.

For SKBA's in depth investment perspectives, please visit our website at www.skba.com or ask us any questions at [email protected].

Total Return Based on a $10,000 Investment

Table Summary
Date
Institutional Class
Morningstar US Market TR Index
Morningstar US Large Value TR Index
03/31/16
$10,000
$10,000
$10,000
06/30/16
$10,409
$10,260
$10,436
09/30/16
$10,821
$10,696
$10,670
12/31/16
$11,563
$11,124
$11,496
03/31/17
$11,779
$11,781
$11,784
06/30/17
$11,901
$12,143
$11,838
09/30/17
$12,509
$12,692
$12,417
12/31/17
$13,428
$13,512
$13,230
03/31/18
$13,316
$13,429
$12,816
06/30/18
$13,532
$13,928
$12,875
09/30/18
$14,080
$14,933
$13,770
12/31/18
$12,056
$12,830
$12,449
03/31/19
$13,336
$14,638
$13,734
06/30/19
$13,672
$15,252
$14,161
09/30/19
$13,862
$15,447
$14,613
12/31/19
$14,893
$16,836
$15,649
03/31/20
$10,404
$13,373
$11,721
06/30/20
$12,295
$16,313
$13,180
09/30/20
$12,646
$17,820
$13,569
12/31/20
$14,971
$20,354
$15,552
03/31/21
$16,637
$21,578
$17,127
06/30/21
$17,525
$23,383
$17,782
09/30/21
$17,299
$23,391
$17,557
12/31/21
$18,266
$25,603
$18,894
03/31/22
$19,290
$24,239
$19,203
06/30/22
$17,493
$20,155
$17,637
09/30/22
$16,578
$19,232
$16,386
12/31/22
$19,038
$20,628
$18,944
03/31/23
$19,025
$22,154
$19,080
06/30/23
$19,530
$24,036
$19,854
09/30/23
$19,231
$23,270
$19,612
12/31/23
$21,189
$26,082
$21,184
03/31/24
$22,900
$28,751
$23,067
06/30/24
$22,471
$29,751
$22,932
09/30/24
$24,512
$31,555
$24,921
12/31/24
$23,920
$32,365
$24,296
03/31/25
$24,888
$30,865
$25,740
06/30/25
$25,755
$34,303
$25,971
09/30/25
$26,699
$37,080
$27,572
12/31/25
$26,832
$37,979
$28,714
03/31/26
$27,947
$36,391
$29,393

The above chart represents historical performance of a hypothetical $10,000 investment over the past 10 years.

Average Annual Total Returns

Table Summary
One Year
Five Year
Ten Year
Institutional Class
12.29%
10.93%
10.82%
Morningstar US Market TR Index
17.90%
11.02%
13.79%
Morningstar US Large Value TR Index
14.19%
11.41%
11.38%

The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Fund Statistics

Table Summary
Total Net Assets
$5,803,640
# of Portfolio Holdings
52
Portfolio Turnover Rate
14%
Investment Advisory Fees (Net of fees waived and expenses reimbursed)
$(64,065)

Top Ten Holdings

(% total investments)

Table Summary
Medtronic PLC
4.00%
AT&T, Inc.
3.62%
RTX Corp.
3.31%
Kontoor Brands, Inc.
3.31%
Kinder Morgan, Inc.
3.28%
Chevron Corp.
3.03%
CME Group, Inc.
2.99%
ConocoPhillips
2.98%
NIKE, Inc., Class B
2.96%
The Hershey Co.
2.82%

* excluding cash equivalents

Sector Weightings

(% total investments)

Table Summary
Value
Value
Financials
17.0%
Health Care
15.0%
Energy
11.4%
Capital Goods / Industrials
9.3%
Consumer Discretionary
9.2%
Technology
8.0%
Consumer Staples
8.0%
Real Estate
6.7%
Communication Services
5.3%
Basic Materials
4.4%
Utilities
4.1%
Transportation
1.6%

* excluding cash equivalents

Where can I find additional information about the Fund?

Additional information is available by scanning the QR code or at https://www.skba.com/baywood-funds, including its:

  • prospectus

  • financial information

  • holdings

  • proxy voting information

Baywood ValuePlus Fund

BVPIX

: Institutional Class

Semi-Annual Shareholder Report - March 31, 2026

217S-BVPIX-26

(b) Not applicable.
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 financial statements filed under Item 7(a).
(b) Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
(a)
Semi
Annual
Financials
and
Other
Information
March
31,
2026
(Unaudited)
Advised
by:
SKBA
Capital
Management,
LLC
www.baywoodfunds.com
BAYWOOD
VALUE
PLUS
FUND
SCHEDULE
OF
INVESTMENTS
March
31,
2026
2
See
Notes
to
Financial
Statements.
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's instruments
as
of
March
31,
2026.
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
is
Common
Stock
and
a
Money
Market
Fund.
Refer
to
this
Schedule
of
Investments
for
a
further
breakout
of
each
security
by
industry.
Shares
Security
Description
Value
Common
Stock
-
95.3%
Basic
Materials
-
4.2%
400‌
Air
Products
and
Chemicals,
Inc.
$
116,196‌
5,600‌
Graphic
Packaging
Holding
Co.
55,664‌
350‌
Packaging
Corp.
of
America
74,277‌
246,137‌
Capital
Goods
/
Industrials
-
8.8%
950‌
3M
Co.
137,969‌
400‌
L3Harris
Technologies,
Inc.
138,060‌
60‌
Parker-Hannifin
Corp.
53,714‌
950‌
RTX
Corp.
183,255‌
512,998‌
Communication
Services
-
5.0%
6,900‌
AT&T,
Inc.
200,031‌
1,850‌
Verizon
Communications,
Inc.
92,870‌
292,901‌
Consumer
Discretionary
-
8.8%
350‌
Darden
Restaurants,
Inc.
68,614‌
1,000‌
Hasbro,
Inc.
93,600‌
2,600‌
Kontoor
Brands,
Inc.
182,754‌
3,100‌
NIKE,
Inc.,
Class B
163,742‌
508,710‌
Consumer
Staples
-
7.6%
1,270‌
Diageo
PLC,
ADR
94,552‌
650‌
Ingredion,
Inc.
73,229‌
3,200‌
Kenvue,
Inc.
55,168‌
400‌
PepsiCo.,
Inc.
62,116‌
750‌
The
Hershey
Co.
155,917‌
440,982‌
Energy
-
10.9%
810‌
Chevron
Corp.
167,589‌
1,250‌
ConocoPhillips
165,000‌
5,400‌
Kinder
Morgan,
Inc.
181,062‌
650‌
Phillips
66
118,417‌
632,068‌
Financials
-
16.2%
1,100‌
American
International
Group,
Inc.
82,775‌
1,000‌
Brookfield
Asset
Management,
Ltd.,
Class A
44,450‌
1,100‌
Citigroup,
Inc.
124,751‌
560‌
CME
Group,
Inc.
165,396‌
2,800‌
Corebridge
Financial,
Inc.
66,808‌
1,100‌
MetLife,
Inc.
77,792‌
3,000‌
Radian
Group,
Inc.
99,240‌
2,100‌
Truist
Financial
Corp.
96,537‌
1,500‌
U.S.
Bancorp
78,015‌
1,300‌
Wells
Fargo
&
Co.
103,493‌
939,257‌
Health
Care
-
14.4%
290‌
Amgen,
Inc.
102,036‌
850‌
Becton
Dickinson
&
Co.
133,646‌
230‌
Cardinal
Health,
Inc.
48,601‌
8,600‌
DENTSPLY
SIRONA,
Inc.
99,760‌
2,550‌
Medtronic
PLC
220,958‌
1,100‌
Merck
&
Co.,
Inc.
132,319‌
3,400‌
Pfizer,
Inc.
95,472‌
832,792‌
Real
Estate
-
6.4%
8,500‌
Healthcare
Realty
Trust,
Inc.
REIT
144,415‌
1,104‌
Realty
Income
Corp.
REIT
67,543‌
2,600‌
VICI
Properties,
Inc.
REIT
71,032‌
3,500‌
Weyerhaeuser
Co.
REIT
85,505‌
368,495‌
Shares
Security
Description
Value
Technology
-
7.6%
1,200‌
Cisco
Systems,
Inc.
$
93,108‌
430‌
International
Business
Machines
Corp.
104,227‌
700‌
NetApp,
Inc.
71,673‌
480‌
NXP
Semiconductors
NV
94,493‌
400‌
Texas
Instruments,
Inc.
77,656‌
441,157‌
Transportation
-
1.5%
360‌
Union
Pacific
Corp.
87,343‌
Utilities
-
3.9%
800‌
American
Electric
Power
Co.,
Inc.
104,864‌
1,200‌
Pinnacle
West
Capital
Corp.
120,900‌
225,764‌
Total
Common
Stock
(Cost
$4,112,126)
5,528,604‌
Shares
Security
Description
Value
Money
Market
Fund
-
4.2%
246,654‌
First
American
Government
Obligations
Fund,
Class X,
3.58%
(a)
(Cost
$246,654)
246,654‌
Investments,
at
value
-
99.5%
(Cost
$4,358,780)
$
5,775,258‌
Other
Assets
&
Liabilities,
Net
-
0.5%
28,382‌
Net
Assets
-
100.0%
$
5,803,640‌
ADR
American
Depositary
Receipt
PLC
Public
Limited
Company
REIT
Real
Estate
Investment
Trust
(a)
Dividend
yield
changes
daily
to
reflect
current
market
conditions.
Rate
was
the
quoted
yield
as
of
March
31,
2026.
Valuation
Inputs
Investments
in
Securities
Level
1
-
Quoted
Prices
$
5,775,258‌
Level
2
-
Other
Significant
Observable
Inputs
-‌
Level
3
-
Significant
Unobservable
Inputs
-‌
Total
$
5,775,258‌
BAYWOOD
VALUE
PLUS
FUND
STATEMENT
OF
ASSETS
AND
LIABILITIES
March
31,
2026
3
See
Notes
to
Financial
Statements.
ASSETS
Investments,
at
value
(Cost
$4,358,780)
$
5,775,258‌
Receivables:
Fund
shares
sold
24,234‌
Dividends
8,216‌
From
investment
advisor
11,079‌
Prepaid
expenses
17,163‌
Total
Assets
5,835,950‌
LIABILITIES
Payables:
Fund
shares
redeemed
9,508‌
Accrued
Liabilities:
Trustees'
fees
and
expenses
11‌
Fund
services
fees
4,998‌
Other
expenses
17,793‌
Total
Liabilities
32,310‌
NET
ASSETS
$
5,803,640‌
COMPONENTS
OF
NET
ASSETS
Paid-in
capital
$
4,124,083‌
Distributable
Earnings
1,679,557‌
NET
ASSETS
$
5,803,640‌
SHARES
OF
BENEFICIAL
INTEREST
AT
NO
PAR
VALUE
(UNLIMITED
SHARES
AUTHORIZED)
248,051‌
NET
ASSET
VALUE,
OFFERING
AND
REDEMPTION
PRICE
PER
SHARE
$
23.40‌
BAYWOOD
VALUE
PLUS
FUND
STATEMENT
OF
OPERATIONS
SIX
MONTHS
ENDED
MARCH
31,
2026
4
See
Notes
to
Financial
Statements.
INVESTMENT
INCOME
Dividend
income
(Net
of
foreign
withholding
taxes
of
$287)
$
91,667‌
Total
Investment
Income
91,667‌
EXPENSES
Investment
advisor
fees
14,000‌
Fund
services
fees
28,020‌
Transfer
agent
fees
10,018‌
Custodian
fees
2,613‌
Registration
fees
10,904‌
Professional
fees
17,579‌
Trustees'
fees
and
expenses
4,075‌
Other
expenses
21,165‌
Total
Expenses
108,374‌
Fees
waived
and
expenses
reimbursed
(88,773‌)
Net
Expenses
19,601‌
NET
INVESTMENT
INCOME
72,066‌
NET
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
Net
realized
gain
on
investments
229,793‌
Net
change
in
unrealized
appreciation
(depreciation)
on
investments
(47,829‌)
NET
REALIZED
AND
UNREALIZED
GAIN
181,964‌
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
$
254,030‌
BAYWOOD
VALUE
PLUS
FUND
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
5
See
Notes
to
Financial
Statements.
For
the
Six
Months
Ended
March
31,
2026
For
the
Year
Ended
September
30,
2025
OPERATIONS
Net
investment
income
$
72,066‌
$
133,440‌
Net
realized
gain
229,793‌
291,296‌
Net
change
in
unrealized
appreciation
(depreciation)
(47,829‌)
3,233‌
Increase
in
Net
Assets
Resulting
from
Operations
254,030‌
427,969‌
DISTRIBUTIONS
TO
SHAREHOLDERS
Total
Distributions
Paid
(356,722‌)
(257,268‌)
CAPITAL
SHARE
TRANSACTIONS
Sale
of
shares
151,745‌
397,712‌
Reinvestment
of
distributions
356,029‌
256,114‌
Redemption
of
shares
(90,862‌)
(368,928‌)
Increase
in
Net
Assets
from
Capital
Share
Transactions
416,912‌
284,898‌
Increase
in
Net
Assets
314,220‌
455,599‌
NET
ASSETS
Beginning
of
Period
5,489,420‌
5,033,821‌
End
of
Period
$
5,803,640‌
$
5,489,420‌
SHARE
TRANSACTIONS
Sale
of
shares
6,462‌
17,914‌
Reinvestment
of
distributions
15,580‌
11,332‌
Redemption
of
shares
(3,940‌)
(17,697‌)
Increase
in
Shares
18,102‌
11,549‌
BAYWOOD
VALUE
PLUS
FUND
FINANCIAL
HIGHLIGHTS
6
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period.
For
the
Six
Months
Ended
March
31,
2026
For
the
Years
Ended
September
30,
2025
2024
2023
2022
2021
INSTITUTIONAL
SHARES
NET
ASSET
VALUE,
Beginning
of
Period
$
23.87‌
$
23.05‌
$
19.11‌
$
17.31‌
$
20.03‌
$
14.96‌
INVESTMENT
OPERATIONS
Net
investment
income
(a)
0.30‌
0.59‌
0.60‌
0.60‌
0.55‌
0.45‌
Net
realized
and
unrealized
gain
(loss)
0.76‌
1.38‌
4.49‌
2.17‌
(1.26‌)
5.04‌
Total
from
Investment
Operations
1.06‌
1.97‌
5.09‌
2.77‌
(0.71‌)
5.49‌
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
investment
income
(0.28‌)
(0.53‌)
(0.56‌)
(0.59‌)
(0.49‌)
(0.42‌)
Net
realized
gain
(1.25‌)
(0.62‌)
(0.59‌)
(0.38‌)
(1.52‌)
-‌
Total
Distributions
to
Shareholders
(1.53‌)
(1.15‌)
(1.15‌)
(0.97‌)
(2.01‌)
(0.42‌)
NET
ASSET
VALUE,
End
of
Period
$
23.40‌
$
23.87‌
$
23.05‌
$
19.11‌
$
17.31‌
$
20.03‌
TOTAL
RETURN
4.68‌%(b)
8.92‌%
27.46‌%
16.00‌%
(4.16‌)%
36.80‌%
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Period
(000s
omitted)
$
5,804‌
$
5,489‌
$
5,034‌
$
3,920‌
$
3,234‌
$
3,389‌
Ratios
to
Average
Net
Assets:
Net
investment
income
2.57‌%(c)
2.60‌%
2.84‌%
3.08‌%
2.77‌%
2.39‌%
Net
expenses
0.70‌%(c)
0.70‌%
0.70‌%
0.70‌%
0.70‌%
0.70‌%
Gross
expenses
(d)
3.87‌%(c)
4.10‌%
4.57‌%
4.75‌%
5.19‌%
5.66‌%
PORTFOLIO
TURNOVER
RATE
14‌%(b)
30‌%
22‌%
28‌%
48‌%
35‌%
(a)
Calculated
based
on
average
shares
outstanding
during
each
period.
(b)
Not
annualized.
(c)
Annualized.
(d)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
Expense
waivers
and/or
reimbursements
would
decrease
the
total
return
had
such
reductions
not
occurred.
BAYWOOD
SOCIALLY
RESPONSIBLE
FUND
SCHEDULE
OF
INVESTMENTS
March
31,
2026
7
See
Notes
to
Financial
Statements.
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's instruments
as
of
March
31,
2026.
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
is
Common
Stock.and
a
Money
Market
Fund.
Refer
to
this
Schedule
of
Investments
for
a
further
breakout
of
each
security
by
industry.
Shares
Security
Description
Value
Common
Stock
-
94.2%
Basic
Materials
-
4.4%
2,100‌
Air
Products
and
Chemicals,
Inc.
$
610,029‌
27,500‌
Graphic
Packaging
Holding
Co.
273,350‌
1,300‌
Packaging
Corp.
of
America
275,886‌
1,159,265‌
Capital
Goods
/
Industrials
-
6.8%
4,100‌
3M
Co.
595,443‌
98,500‌
Clarivate
PLC
(a)
249,205‌
700‌
Cummins,
Inc.
376,614‌
4,900‌
nVent
Electric
PLC
579,572‌
1,800,834‌
Communication
Services
-
4.8%
900‌
Alphabet,
Inc.,
Class A
258,804‌
27,700‌
AT&T,
Inc.
803,023‌
3,800‌
Verizon
Communications,
Inc.
190,760‌
1,252,587‌
Consumer
Discretionary
-
7.8%
2,800‌
Hasbro,
Inc.
262,080‌
14,300‌
Kontoor
Brands,
Inc.
1,005,147‌
14,700‌
NIKE,
Inc.,
Class B
776,454‌
2,043,681‌
Consumer
Staples
-
6.0%
30,600‌
Kenvue,
Inc.
527,544‌
5,100‌
Mondelez
International,
Inc.,
Class A
293,964‌
1,200‌
PepsiCo.,
Inc.
186,348‌
2,800‌
The
Hershey
Co.
582,092‌
1,589,948‌
Energy
-
8.2%
6,800‌
Devon
Energy
Corp.
342,176‌
24,400‌
Kinder
Morgan,
Inc.
818,132‌
2,100‌
Texas
Pacific
Land
Corp.
996,576‌
2,156,884‌
Financials
-
20.3%
2,600‌
American
Express
Co.
786,448‌
6,100‌
American
International
Group,
Inc.
459,025‌
1,600‌
Berkshire
Hathaway,
Inc.,
Class B
(a)
766,720‌
7,462‌
Brookfield
Corp.
301,987‌
1,000‌
Cboe
Global
Markets,
Inc.
281,070‌
2,700‌
CME
Group,
Inc.
797,445‌
12,800‌
Corebridge
Financial,
Inc.
305,408‌
2,800‌
Interactive
Brokers
Group,
Inc.
187,796‌
5,900‌
Truist
Financial
Corp.
271,223‌
4,900‌
U.S.
Bancorp
254,849‌
14,350‌
W
R
Berkley
Corp.
951,118‌
5,363,089‌
Health
Care
-
16.9%
3,150‌
AstraZeneca
PLC
621,243‌
36,100‌
Avantor,
Inc.
(a)
283,024‌
4,100‌
Becton
Dickinson
&
Co.
644,643‌
34,600‌
DENTSPLY
SIRONA,
Inc.
401,360‌
1,850‌
Labcorp
Holdings,
Inc.
493,599‌
9,200‌
Medtronic
PLC
797,180‌
1,800‌
Merck
&
Co.,
Inc.
216,522‌
600‌
Regeneron
Pharmaceuticals,
Inc.
463,584‌
8,200‌
Solventum
Corp.
(a)
535,460‌
4,456,615‌
Real
Estate
-
4.6%
47,700‌
Healthcare
Realty
Trust,
Inc.
REIT
810,423‌
16,800‌
Weyerhaeuser
Co.
REIT
410,424‌
1,220,847‌
Technology
-
11.3%
1,500‌
Adobe,
Inc.
(a)
364,620‌
6,300‌
Cisco
Systems,
Inc.
488,817‌
1,500‌
Coherent
Corp.
(a)
357,315‌
Shares
Security
Description
Value
Technology
-
11.3%
(continued)
5,600‌
Intel
Corp.
(a)
$
247,128‌
2,200‌
International
Business
Machines
Corp.
533,258‌
3,200‌
NetApp,
Inc.
327,648‌
3,400‌
NXP
Semiconductors
NV
669,324‌
2,988,110‌
Transportation
-
1.6%
1,700‌
Union
Pacific
Corp.
412,454‌
Utilities
-
1.5%
3,400‌
WEC
Energy
Group,
Inc.
393,618‌
Total
Common
Stock
(Cost
$21,980,803)
24,837,932‌
Shares
Security
Description
Value
Money
Market
Fund
-
5.4%
1,423,801‌
First
American
Government
Obligations
Fund,
Class X,
3.58%
(b)
(Cost
$1,423,801)
1,423,801‌
Investments,
at
value
-
99.6%
(Cost
$23,404,604)
$
26,261,733‌
Other
Assets
&
Liabilities,
Net
-
0.4%
101,266‌
Net
Assets
-
100.0%
$
26,362,999‌
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
March
31,
2026.
Valuation
Inputs
Investments
in
Securities
Level
1
-
Quoted
Prices
$
26,261,733‌
Level
2
-
Other
Significant
Observable
Inputs
-‌
Level
3
-
Significant
Unobservable
Inputs
-‌
Total
$
26,261,733‌
BAYWOOD
SOCIALLY
RESPONSIBLE
FUND
STATEMENT
OF
ASSETS
AND
LIABILITIES
March
31,
2026
8
See
Notes
to
Financial
Statements.
ASSETS
Investments,
at
value
(Cost
$23,404,604)
$
26,261,733‌
Receivables:
Fund
shares
sold
78,106‌
Dividends
33,144‌
Reclaims
444‌
Prepaid
expenses
16,147‌
Total
Assets
26,389,574‌
LIABILITIES
Payables:
Fund
shares
redeemed
25‌
Accrued
Liabilities:
Investment
advisor
fees
4,184‌
Trustees'
fees
and
expenses
51‌
Fund
services
fees
5,965‌
Other
expenses
16,350‌
Total
Liabilities
26,575‌
NET
ASSETS
$
26,362,999‌
COMPONENTS
OF
NET
ASSETS
Paid-in
capital
$
22,247,377‌
Distributable
Earnings
4,115,622‌
NET
ASSETS
$
26,362,999‌
SHARES
OF
BENEFICIAL
INTEREST
AT
NO
PAR
VALUE
(UNLIMITED
SHARES
AUTHORIZED)
1,479,333‌
NET
ASSET
VALUE,
OFFERING
AND
REDEMPTION
PRICE
PER
SHARE
$
17.82‌
BAYWOOD
SOCIALLY
RESPONSIBLE
FUND
STATEMENT
OF
OPERATIONS
SIX
MONTHS
ENDED
MARCH
31,
2026
9
See
Notes
to
Financial
Statements.
INVESTMENT
INCOME
Dividend
income
(Net
of
foreign
withholding
taxes
of
$1,180)
$
328,575‌
Total
Investment
Income
328,575‌
EXPENSES
Investment
advisor
fees
93,410‌
Fund
services
fees
35,036‌
Transfer
agent
fees
9,961‌
Custodian
fees
2,595‌
Registration
fees
10,915‌
Professional
fees
18,768‌
Trustees'
fees
and
expenses
5,198‌
Other
expenses
24,948‌
Total
Expenses
200,831‌
Fees
waived
(82,067‌)
Net
Expenses
118,764‌
NET
INVESTMENT
INCOME
209,811‌
NET
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
Net
realized
gain
on
investments
1,339,930‌
Net
change
in
unrealized
appreciation
(depreciation)
on
investments
(1,200,651‌)
NET
REALIZED
AND
UNREALIZED
GAIN
139,279‌
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
$
349,090‌
BAYWOOD
SOCIALLY
RESPONSIBLE
FUND
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
10
See
Notes
to
Financial
Statements.
For
the
Six
Months
Ended
March
31,
2026
For
the
Year
Ended
September
30,
2025
OPERATIONS
Net
investment
income
$
209,811‌
$
285,758‌
Net
realized
gain
1,339,930‌
470,757‌
Net
change
in
unrealized
appreciation
(depreciation)
(1,200,651‌)
595,523‌
Increase
in
Net
Assets
Resulting
from
Operations
349,090‌
1,352,038‌
DISTRIBUTIONS
TO
SHAREHOLDERS
Total
Distributions
Paid
(806,846‌)
(463,976‌)
CAPITAL
SHARE
TRANSACTIONS
Sale
of
shares
1,534,599‌
16,850,159‌
Reinvestment
of
distributions
798,994‌
454,435‌
Redemption
of
shares
(1,554,423‌)
(1,199,402‌)
Increase
in
Net
Assets
from
Capital
Share
Transactions
779,170‌
16,105,192‌
Increase
in
Net
Assets
321,414‌
16,993,254‌
NET
ASSETS
Beginning
of
Period
26,041,585‌
9,048,331‌
End
of
Period
$
26,362,999‌
$
26,041,585‌
SHARE
TRANSACTIONS
Sale
of
shares
84,632‌
967,057‌
Reinvestment
of
distributions
44,414‌
26,109‌
Redemption
of
shares
(85,559‌)
(69,221‌)
Increase
in
Shares
43,487‌
923,945‌
BAYWOOD
SOCIALLY
RESPONSIBLE
FUND
FINANCIAL
HIGHLIGHTS
11
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period.
For
the
Six
Months
Ended
March
31,
2026
For
the
Years
Ended
September
30,
2025
2024
2023
2022
2021
INSTITUTIONAL
SHARES
NET
ASSET
VALUE,
Beginning
of
Period
$
18.14‌
$
17.68‌
$
14.39‌
$
12.80‌
$
14.32‌
$
10.18‌
INVESTMENT
OPERATIONS
Net
investment
income
(a)
0.14‌
0.29‌
0.29‌
0.27‌
0.25‌
0.18‌
Net
realized
and
unrealized
gain
(loss)
0.09‌
0.84‌
3.60‌
1.91‌
(1.14‌)
4.19‌
Total
from
Investment
Operations
0.23‌
1.13‌
3.89‌
2.18‌
(0.89‌)
4.37‌
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
investment
income
(0.12‌)
(0.22‌)
(0.26‌)
(0.27‌)
(0.21‌)
(0.14‌)
Net
realized
gain
(0.43‌)
(0.45‌)
(0.34‌)
(0.32‌)
(0.42‌)
(0.09‌)
Total
Distributions
to
Shareholders
(0.55‌)
(0.67‌)
(0.60‌)
(0.59‌)
(0.63‌)
(0.23‌)
NET
ASSET
VALUE,
End
of
Period
$
17.82‌
$
18.14‌
$
17.68‌
$
14.39‌
$
12.80‌
$
14.32‌
TOTAL
RETURN
1.26‌%(b)
6.59‌%
27.72‌%
17.10‌%
(6.58‌)%
43.10‌%
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Period
(000s
omitted)
$
26,363‌
$
26,042‌
$
9,048‌
$
6,981‌
$
6,536‌
$
6,766‌
Ratios
to
Average
Net
Assets:
Net
investment
income
1.57‌%(c)
1.71‌%
1.81‌%
1.88‌%
1.73‌%
1.31‌%
Net
expenses
0.89‌%(c)
0.89‌%
0.89‌%
0.89‌%
0.89‌%
0.89‌%
Gross
expenses
(d)
1.50‌%(c)
1.91‌%
3.03‌%
3.12‌%
3.17‌%
3.76‌%
PORTFOLIO
TURNOVER
RATE
13‌%(b)
15‌%
23‌%
25‌%
22‌%
15‌%
(a)
Calculated
based
on
average
shares
outstanding
during
each
period.
(b)
Not
annualized.
(c)
Annualized.
(d)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
Expense
waivers
and/or
reimbursements
would
decrease
the
total
return
had
such
reductions
not
occurred.
BAYWOOD
FUNDS
NOTES
TO
FINANCIAL
STATEMENTS
March
31,
2026
12
Note
1.
Organization
Baywood
Value
Plus
Fund
and
Baywood
Socially
Responsible
Fund
(individually,
a
"Fund"
and
collectively,
the
"Funds")
are
diversified
portfolios
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
each
Fund's
shares
of
beneficial
interest
without
par
value.
The
Baywood
Value
Plus
Fund
commenced
operations
on
December
2,
2013,
through
a
reorganization
of
a
collective
investment
trust
into
the
Baywood
Value
Plus
Fund.
The
collective
investment
trust
was
previously
managed
by
the
Baywood
Value
Plus
Fund's
Advisor
and
portfolio
management
team.
This
collective
investment
trust
was
organized
and
commenced
operations
on
June
27,
2008.
The
Baywood
Value
Plus
Fund
currently
offers
Institutional
Shares.
The
Baywood
Value
Plus
Fund
seeks
to
achieve
long-term
capital
appreciation
by
investing
in
undervalued
equity
securities.
The
Baywood
Socially
Responsible
Fund
commenced
operations
on
January
3,
2005.
The
Baywood
Socially
Responsible
Fund
currently
offers
Institutional
Shares.
The
Baywood
Socially
Responsible
Fund
seeks
to
provide
long-term
capital
growth.
Each
Fund
included
herein
is
deemed
to
be
an
individual
reporting
segment
and
is
not
part
of
a
consolidated
reporting
entity.
The
objective
and
strategy
of
each
Fund
is
used
by
the
Advisor,
as
defined
in
Note
3,
to
make
investment
decisions,
and
the
results
of
the
operations,
as
shown
on
the
Statements
of
Operations
and
the
financial
highlights
for
each
Fund
is
the
information
utilized
for
the
day-
to-day
management
of
the
Funds.
Each
Fund
is
party
to
the
expense
agreements
as
disclosed
in
the
Notes
to
the
Financial
Statements
and
there
are
no
resources
allocated
to
the
Funds
based
on
performance
measurements.
Due
to
the
significance
of
oversight
and
their
role,
the
management
committee
of
SKBA
Capital
Management,
LLC,
the
Funds'
Advisor,
is
deemed
to
be
the
Chief
Operating
Decision
Maker.
Note
2.
Summary
of
Significant
Accounting
Policies
The
Funds
are
investment
companies
and
follow
accounting
and
reporting
guidance
under
Financial
Accounting
Standards
Board
Accounting
Standards
Codification
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
recorded
at
fair
value
using
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.
Shares
of
non-exchange
traded
open-end
mutual
funds
are
valued
at
net
asset
value
per
share
("NAV").
Short-term
investments
that
mature
in
sixty
days
or
less
may
be
recorded
at
amortized
cost,
which
approximates
fair
value.
Pursuant
to
Rule
2a-5
under
the
Investment
Company
Act,
the
Trust's
Board
of
Trustees
(the
"Board")
has
designated
the
Advisor
as
each
Fund's
valuation
designee
to
perform
any
fair
value
determinations
for
securities
and
other
assets
held
by
each
Fund.
The
Advisor
is
subject
to
the
oversight
of
the
Board
and
certain
reporting
and
other
requirements
intended
to
provide
the
Board
the
information
needed
to
oversee
the
Advisor's
fair
value
determinations.
The
Advisor
is
responsible
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
in
accordance
with
policies
and
procedures
that
have
been
approved
by
the
Board.
Under
these
procedures,
the
Advisor
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
Board
has
approved
the
Advisor's
fair
valuation
procedures
as
a
part
of
each
Fund's
compliance
program
and
will
review
any
changes
made
to
the
procedures.
The
Advisor
provides
fair
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.
Advisor
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
Advisor
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
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.
BAYWOOD
FUNDS
NOTES
TO
FINANCIAL
STATEMENTS
March
31,
2026
13
GAAP
has
a
three-tier
fair
value
hierarchy.
The
basis
of
the
tiers
is
dependent
upon
the
level
of
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.
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
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
that
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
March
31,
2026,
for
each
Fund's
investments
is
included
at
the
end
of
each
Fund's
Schedule
of
Investments.
REITs
-
Each
Fund
has
made
certain
investments
in
real
estate
investment
trusts
("REITs")
which
pay
dividends
to
their
shareholders
based
upon
funds
available
from
operations.
It
is
quite
common
for
these
dividends
to
exceed
the
REIT's
taxable
earnings
and
profits
resulting
in
the
excess
portion
of
such
dividends
being
designated
as
a
return
of
capital.
Each
Fund
may
include
the
gross
dividends
from
such
REITs
in
income
or
may
utilize
estimates
of
any
potential
REIT
dividend
reclassifications
in
each
Fund's
annual
distributions
to
shareholders
and,
accordingly,
a
portion
of
each
Fund's
distributions
may
be
designated
as
a
return
of
capital,
require
reclassification,
or
be
under
distributed
on
an
excise
basis
and
subject
to
excise
tax.
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.
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
and
included
in
interest
income.
Identified
cost
of
investments
sold
is
used
to
determine
the
gain
and
loss
for
both
financial
statement
and
federal
income
tax
purposes.
Distributions
to
Shareholders
-
Distributions
to
shareholders
of
net
investment
income,
if
any,
are
declared
and
paid
at
least
annually.
Distributions
to
shareholders
of
net
capital
gains,
if
any,
are
declared
and
paid
at
least
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
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
Funds
will
not
be
subject
to
a
federal
excise
tax.
Therefore,
no
federal
income
or
excise
tax
provision
is
required.
Each
Fund
recognizes
interest
and
penalties,
if
any,
related
to
unrecognized
tax
benefits
as
income
tax
expense
in
the
Statements
of
Operations.
During
the
period,
each
Fund
did
not
incur
any
interest
or
penalties.
Each
Fund
files
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
March
31,
2026,
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.
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
BAYWOOD
FUNDS
NOTES
TO
FINANCIAL
STATEMENTS
March
31,
2026
14
claims
is
considered
remote.
Each
Fund
has
determined
that
none
of
these
arrangements
requires
disclosure
on
each
Fund's
Statement
of
Assets
and
Liabilities.
Note
3.
Fees
and
Expenses
Investment
Advisor
-
SKBA
Capital
Management,
LLC
(the
"Advisor")
is
the
investment
adviser
to
the
Funds.
Pursuant
to
an
investment
advisory
agreement,
the
Advisor
receives
an
advisory
fee,
payable
monthly,
at
an
annual
rate
of
0.50%
and
0.70%
of
the
average
daily
net
assets
of
Baywood
Value
Plus
Fund
and
Baywood
Socially
Responsible
Fund,
respectively.
Distribution
-
Foreside
Fund
Services,
LLC,
a
wholly
owned
subsidiary
of
Foreside
Financial
Group,
LLC
(d/b/a
ACA
Group)
(the
"Distributor"),
acts
as
the
agent
of
the
Trust
in
connection
with
the
continuous
offering
of
shares
of
the
Funds.
The
Funds
do
not
have
a
distribution
(12b-1)
plan;
accordingly,
the
Distributor
does
not
receive
compensation
from
the
Funds
for
its
distribution
services.
The
Advisor
compensates
the
Distributor
directly
for
its
services.
The
Distributor
is
not
affiliated
with
the
Advisor
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
and
administration
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
-
Each
Independent
Trustee
receives
an
annual
fee
of
$25,000
($32,500
for
the
Chairman)
for
service
to
the
Trust.
The
Audit
Committee
Chairman
receives
an
additional
$2,000
annually.
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.
Note
4.
Expense
Reimbursement
and
Fees
Waived
The
Advisor
has
contractually
agreed
to
waive
its
fee
and/or
reimburse
certain
expenses
to
limit
total
operating
expenses
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
acquired
fund
fees
and
expenses,
proxy
expenses
and
extraordinary
expenses)
to
0.70%
through
January
31,
2027,
for
Baywood
Value
Plus
Fund.
The
Advisor
also
has
contractually
agreed
to
waive
its
fees
and/or
reimburse
certain
expenses
to
limit
total
operating
expenses
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
acquired
fund
fees
and
expenses,
proxy
expenses
and
extraordinary
expenses)
to
0.89%
through
January
31,
2027,
for
Baywood
Socially
Responsible
Fund.
Other
Fund
service
providers
have
agreed
to
waive
a
portion
of
their
fees
and
such
waivers
may
be
changed
or
eliminated
with
the
approval
of
the
Board
of
Trustees
of
the
Trust.
For
the
period
ended
March
31,
2026,
fees
waived
and
expenses
reimbursed
were
as
follows:
The
Advisor
may
be
reimbursed
by
each
Fund
for
fees
waived
and
expenses
reimbursed
by
the
Advisor
pursuant
to
the
Expense
Cap
if
such
payment
is
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
March
31,
2026,
$449,747
and
$443,436
in
the
Baywood
Value
Plus
Fund
and
Baywood
Socially
Responsible
Fund,
respectively,
is
subject
to
recapture
by
the
Advisor.
Other
Waivers
are
not
eligible
for
recoupment.
Note
5.
Security
Transactions
The
cost
of
purchases
and
proceeds
from
sales
of
investment
securities
(including
maturities),
other
than
short-term
investments
during
the
period
ended
March
31,
2026,
were
as
follows:
Investment
Adviser
Fees
Waived
Investment
Adviser
Expenses
Reimbursed
Other
Waivers
Total
Fees
Waived
and
Expenses
Reimbursed
Baywood
Value
Plus
Fund
$
14,000‌
$
64,065‌
$
10,708‌
$
88,773‌
Baywood
Socially
Responsible
Fund
71,418‌
‌-
10,649‌
82,067‌
BAYWOOD
FUNDS
NOTES
TO
FINANCIAL
STATEMENTS
March
31,
2026
15
Note
6.
Federal
Income
Tax
As
of
March
31,
2026
,
the
cost
for
federal
income
tax
purposes
is
substantially
the
same
as
for
financial
statement
purposes
and
the
components
of
net
unrealized
appreciation
were
as
follows:
As
of
September
30,
2025,
distributable
earnings
(accumulated
loss)
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
wash
sales,
REITs
and
equity
return
of
capital.
Note
7.
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.
Purchases
Sales
Baywood
Value
Plus
Fund
$
1,053,509‌
$
730,369‌
Baywood
Socially
Responsible
Fund
3,356,917
3,273,543
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
Baywood
Value
Plus
Fund
$
1,512,548‌
$
(96,070‌)
$
1,416,478‌
Baywood
Socially
Responsible
Fund
4,598,811‌
(1,741,682‌)
2,857,129‌
Undistributed
Ordinary
Income
Undistributed
Long-Term
Gain
Net
Unrealized
Appreciation
Total
Baywood
Value
Plus
Fund
$
3,729‌
$
288,894‌
$
1,489,626‌
$
1,782,249‌
Baywood
Socially
Responsible
Fund
13,678‌
489,331‌
4,070,369‌
4,573,378‌
Baywood
Funds
OTHER
INFORMATION
March
31,
2026
16
Changes
in
and
Disagreements
with
Accountants
(Item
8
of
Form
N-CSR)
N/A
Proxy
Disclosure
(Item
9
of
Form
N-CSR)
N/A
Remuneration
Paid
to
Directors,
Officers,
and
Others
(Item
10
of
Form
N-CSR)
Please
see
financial
statements
in
Item
7.
Statement
Regarding
the
Basis
for
the
Board's
Approval
of
Investment
Advisory
Contract
(Item
11
of
Form
N-CSR)
N/A
FOR
MORE
INFORMATION:
P.O.
Box
588
Portland,
ME
04112
(855)
409-2297
(toll
free)
INVESTMENT
ADVISOR
SKBA
Capital
Management,
LLC
601
California
Street,
Suite
1500
San
Francisco,
CA
94108
TRANSFER
AGENT
Apex
Fund
Services
P.O.
Box
588
Portland,
ME
04112
www.apexgroup.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.
217-SAR-0326
(b) Included as part of financial statements filed under Item 7(a).
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Included as part of financial statements filed under Item 7(a).
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Not applicable.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Registrant does not accept nominees to the Board of Trustees from shareholders.
ITEM 16. 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 Reporting Period that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable.
ITEM 19. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Not applicable.
(a)(3) Certifications pursuant to Rule 30a-2(a) of the Act, and Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
(a)(4) Not applicable.
(a)(5) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) of the Act, and Section 906 of the Sarbanes-Oxley Act of 2002 (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/ Zachary Tackett
Zachary Tackett, Principal Executive Officer
Date:
May 18, 2026
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/ Zachary Tackett
Zachary Tackett, Principal Executive Officer
Date:
May 18, 2026
By:
/s/ Karen Shaw
Karen Shaw, Principal Financial Officer
Date:
May 18, 2026
Forum Funds II published this content on May 21, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 21, 2026 at 17:41 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]