Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 13

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 13
---
media and telecom—detracted from performance due to weakness in advertising and wired telecommunications, respectively.

With respect to the high yield allocation,
all industries finished higher and contributed to performance for the period. Financial services, energy, and technology had the greatest impact on the Fund. In financial services, consumer lending holdings were the primary drivers of performance.
Gains in energy were broad, with every position closing higher for the fiscal year. Technology was led by cybersecurity and data storage holdings. There were no industries that detracted from performance for the 12-month period.

#### Level Distribution Practice
The Fund has a practice of seeking to
maintain a specified level of monthly distributions to holders of common shares, which may be changed at any time. As a result of this practice, 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 practice 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.

6</div>

Convertible & Income Fund II (NCZ) 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                                                                    | 27.69% | 2.17% | 2.26% |
| Net                                                                         
 Asset Value1,2                                                              | 19.83% | 2.