Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 17

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 17
---
 taxable net investment income and net realized gains. During the most recent fiscal year, the Plan did not have a material impact on the Fund’s investment strategy. Please refer to the financial
highlights and federal income tax information note in this report for further information about the Fund’s distributions and its effect on net asset value.

The preceding information is the opinion of
portfolio management only through the end of the period of the report as stated on the cover. Any such opinions are subject to change at any time based upon market conditions and should not be relied upon as investment advice.

<div align='center'>For information
regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 18.

8</div>

#### Diversified Income &
Convertible Fund (ACV)

<div align='center'>**MANAGER’S DISCUSSION OF FUND PERFORMANCE
(Unaudited) (Continued)**</div>

#### January 31, 2025
The Fund’s portfolio holdings are
subject to change and may not be representative of the portfolio managers’ current or future investment decisions. The mention of individual securities held by the Fund is for informational purposes only and should not be construed as a
recommendation to purchase or sell any securities. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional.

<div align='center'>For
information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 18.

9</div>

Diversified Income & Convertible Fund (ACV) MANAGER’S DISCUSSION OF FUND PERFORMANCE (Unaudited) (Continued) January 31, 2025

Average Annual Total Returns 1 for periods ended 1/31/25

|                                                                                                   | 1      
 Year   | 5      
 Years  | Since     
 Inception 
 5/26/15   |
| Market                                                                                            
 Value1,2                                                                                          | 12.80% | 11.31% | 10.69%    |
| Net                                                                                               
 Asset Value1,2                                                                                    | 23.29% 
 3      | 11.92% | 11.07%    |
| Composite:                                                                                        
 50% ICE BofA U.S. Convertibles Index/ 25% ICE BofA U.S. High Yield Index/ 25%Russell 1000® Growth 
 Index1,4                                                                                          | 18.19% |