Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 80

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 80
---
 economies of scale may develop for certain funds as their assets
increase and their fixed fund-level expenses decline as a percentage of assets, but that closed-end funds such as the Funds typically do not have the ability to increase substantially their asset base as do open-end funds.

The Board also noted that VIA had agreed to
implement an extension of each Fund’s expense limitation agreement through January 31, 2026. The Board then concluded that, given the Funds’ closed-end structure, no changes to the Funds’ advisory and subadvisory fee structures
were necessary or advisable at this time. The Board agreed that it would be appropriate to monitor this matter in the event that the assets of the Funds were to increase substantially via a secondary or rights offering, capital appreciation,
reinvested dividends, the use of increased leverage or some other means, such as (but not limited to) at-the-market offerings.

Other Factors

The Board considered
other benefits that may be realized by VIA, each Subadviser and their respective affiliates as a result of their relationships with the Funds. The Board noted that an affiliate of VIA provides administrative services to the Funds. The Board noted
management’s discussion of the fact that, while the NFJ Investment Group is an affiliate of VIA, there are no other direct benefits received by NFJ Investment Group or VIA in providing investment advisory services to NFJ, other than the fees
earned under the respective Agreement. The Board considered that there may be certain indirect or ancillary benefits which may accrue to VIA and its affiliates, including (but not limited to): (a) the ability to leverage relationships with service
providers to obtain more favorable terms or rates, (b) reputational benefits, (c) the receipt of research products and services acquired through commissions paid on portfolio transactions, and (d) the potential to attract other business.

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### CONSIDERATION OF ADVISORY AND
SUBADVISORY AGREEMENTS

#### BY THE BOARD OF TRUSTEES (Unaudited)
(Continued)

Conclusion

Based on all of the foregoing
considerations, the Board, including a majority of the Independent Trustees, determined that the continuation of each Agreement, as amended, was in the best interests of each applicable Fund and its respective shareholders. Accordingly, the Board,
and the Independent Trustees voting separately, approved the continuation of the Agreements, as amended, with respect to each Fund.

<div align='center'>114</div>

FUND MANAGEMENT TABLE