Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 21

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 21
---

sizeable order backlog.

Top detractors
included a cybersecurity provider that experienced softer-than-expected subscription trends and a cloud services holding that saw slower volume growth for a key segment. Other detractors included a medical device company that experienced sales
weakness stemming from a reorganization, a residential solar provider due to regulatory uncertainty, and a semiconductor company that has exposure to electric vehicle manufacturing.

#### Managed Distribution Plan
As discussed on the inside cover of this
Report, the Fund currently operates under a Managed Distribution Plan (the “Plan”) pursuant to which the Fund makes a quarterly distribution at a current rate of $0.305 per share. As a result of execution on the Plan, the Fund may pay
distributions in excess of the Fund’s 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.

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.

12</div>

Dividend, Interest & Premium Strategy Fund (NFJ) 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  | 10    
 Years |
| Market                                                                 
 Value1,2                                                               | 17.41% | 8.13%  | 6.58% |
| Net                                                                    
 Asset Value1,2                                                         | 9.90%  | 7.26%  | 5.91% |