Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 3

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 3
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 Changes in Net                                                                                                        
 Assets                                                                                                                              |  68 |
| Statements of Cash                                                                                                                  
 Flows                                                                                                                               |  71 |
| Financial                                                                                                                           
 Highlights                                                                                                                          |  72 |
| Notes to Financial                                                                                                                  
 Statements                                                                                                                          |  80 |
| Report of Independent Registered Public Accounting                                                                                  
 Firm                                                                                                                                |  92 |
| Tax Information                                                                                                                     
 Notice                                                                                                                              |  93 |
| Investment Objective, Principal Strategies and Principal                                                                            
 Risks                                                                                                                               |  95 |
| Automatic Reinvestment and Cash Purchase                                                                                            
 Plan                                                                                                                                | 107 |
| Consideration of Advisory and Subadvisory Agreements by the Board of                                                                
 Trustees                                                                                                                            | 110 |
| Fund Management                                                                                                                     
 Tables                                                                                                                              | 115 |

### MESSAGE TO SHAREHOLDERS
To Virtus Closed-End Fund Shareholders:

I am pleased to present this annual report,
which reviews the performance of your Fund for the 12 months ended January 31, 2025.

Higher-volatility areas of the market
outperformed during the 12-month period, driving equities, convertible securities, and high yield bonds higher. The U.S. economy showed strength while inflation eased somewhat. The Federal Reserve (the “Fed”) began its anticipated
interest rate cuts in September, adding to market optimism. Strong corporate earnings were fueled by developments in artificial intelligence (“AI”), as well as the outcome of the U.S. presidential election, which was deemed positive for
the markets.

Domestic and international equity indexes
posted strong returns for the 12 months ended January 31, 2025. U.S. large-capitalization stocks returned 26.38%, as measured by the S&P 500 ® Index, while small-cap
stocks returned 19.09%, as measured by the Russell 2000 ® Index. Convertible securities, as measured by the ICE BofA U.S. Convertibles Index, returned 15.43%. Within
international equities, developed markets, as measured by the MSCI EAFE ® Index (net), returned 8.65%, while emerging markets, as measured by the MSCI Emerging Markets Index
(net), were up 14.75%.

In fixed income markets, the
yield on the 10-year Treasury rose to 4.58% on January 31, 2025, from 3.99% on January 31, 2024. The broader U.S. fixed income market, as