Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 4

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 4
---
 represented by the Bloomberg U.S. Aggregate Bond Index, was up 2.07% for the 12-month period, while
non-investment grade bonds, as measured by the Bloomberg U.S. Corporate High Yield Bond Index, were up 9.68%.

If you have any questions about your Fund or require
assistance, please call our shareholder service team at 1-866-270-7788. We appreciate your business and remain committed to your long-term financial success.

Sincerely,

George R.
Aylward 
 President and Chief Executive Officer, Virtus Closed-End Funds 
 March 2025

Refer to the Manager’s Discussion section for your
Fund’s performance. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above.

<div align='center'>**1

Artificial Intelligence
& Technology Opportunities Fund (AIO)**</div>

### MANAGER’S DISCUSSION OF
FUND PERFORMANCE (Unaudited)

#### January 31, 2025
About
the Fund:

Artificial Intelligence &
Technology Opportunities Fund’s (NYSE: AIO) (the “Fund”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. There is no guarantee that the Fund will achieve its investment objective.

The use of leverage currently enables the
Fund to borrow at short-term rates and seek to invest at higher yields on its investments. As of January 31, 2025, the Fund’s leverage consisted of $130.0 million of borrowings made pursuant to margin financing and/or securities lending, which
represented approximately 14% of the Fund’s total assets.

Manager Comments - Voya Investment Management Co. LLC
(“Voya IM”)

Voya IM manages
the Fund. As the asset management business of Voya Financial (NYSE: VOYA), Voya IM seeks to understand and anticipate client needs, delivering differentiated solutions across public and private fixed income, equity, and multi-asset platforms,
including private markets and alternatives. The following commentary is provided by the portfolio team at Voya IM.

How did the markets perform during the Fund’s fiscal year
ended January 31, 2025?

Global equities
rallied during the reporting period. Many markets hit new highs as a U.S. recession failed to materialize and most major central banks started to cut interest rates. Sentiment across U.S. equities improved following