Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 2

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 2
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 amounts for tax
reporting purposes will depend upon the Fund’s investment results during its fiscal year and may be subject to changes based on tax regulations. The Funds will send shareholders a Form 1099-DIV for the calendar year that will tell you how to
report distributions for federal income tax purposes.

The Board may amend, suspend or terminate
the Plan at any time, without prior notice to shareholders, if it deems such action to be in the best interest of the Fund and its shareholders.

Information on each Fund is available
through the closed-end fund section on the web at www.Virtus.com . Section 19(a) notices are posted on the website at:

https://www.virtus.com/AIO 
 https://www.virtus.com/ACV 
 https://www.virtus.com/NFJ 
 https://www.virtus.com/NIE

Table of Contents

| Message to                                                                                                                          
 Shareholders                                                                                                                        |   1 |
| Manager’s Discussion of Fund Performance:                                                                                           |     |
| Virtus Artificial Intelligence & Technology Opportunities Fund (“Artificial Intelligence & Technology Opportunities Fund” or “AIO”) |   2 |
| Virtus Convertible & Income Fund (“Convertible & Income Fund” or “NCV”)                                                             |   4 |
| Virtus Convertible & Income Fund II (“Convertible & Income Fund II” or “NCZ”)                                                       |   6 |
| Virtus Diversified Income & Convertible Fund (“Diversified Income & Convertible Fund” or “ACV”)                                     |   8 |
| Virtus Dividend, Interest & Premium Strategy Fund (“Dividend, Interest & Premium Strategy Fund” or “NFJ”)                           |  11 |
| Virtus Equity & Convertible Income Fund (“Equity & Convertible Income Fund” or “NIE”)                                               |  14 |
| Portfolio Holdings Summary                                                                                                          
 Weightings                                                                                                                          |  16 |
| Key Investment                                                                                                                      
 Terms                                                                                                                               |  18 |
| Schedules of Investments:                                                                                                           |     |
| AIO                                                                                                                                 |  21 |
| NCV                                                                                                                                 |  25 |
| NCZ                                                                                                                                 |  33 |
| ACV                                                                                                                                 |  41 |
| NFJ                                                                                                                                 |  51 |
| NIE                                                                                                                                 |  58 |
| Statements of Assets and                                                                                                            
 Liabilities                                                                                                                         |  64 |
| Statements of                                                                                                                       
 Operations                                                                                                                          |  66 |
| Statements of