Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 14

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 14
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60% | 3.95% |
| Composite:                                                                  
 60% ICE BofA U.S. Convertibles Index/ 40% ICE BofA U.S. High Yield Index1,3 | 13.17% | 7.59% | 7.79% |
| ICE                                                                         
 BofA U.S. Convertibles Index1,3                                             | 15.43% | 9.63% | 9.44% |
| ICE                                                                         
 BofA U.S. High Yield Index1,3                                               | 9.67%  | 4.33% | 5.15% |

All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Please visit Virtus.com for performance data current to the most recent month-end. Growth of $10,000 for periods ended 1/31 This graph shows the change in value of a hypothetical investment of $10,000 in the Fund for the years indicated. For comparison, the same investment is shown in the indicated index.

| 1 | Past                                                                                                                                                                                                                                                     
 performance is not indicative of future results. Current performance may be lower or higher than performance in historical periods.                                                                                                                      |
| 2 | Total                                                                                                                                                                                                                                                    
 return on market value is calculated assuming a purchase of common shares on the opening of the first day and sale on the closing of the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to 
 be reinvested at prices obtained under the Fund’s Automatic Reinvestment and Cash Purchase Plan. Total return on market value is not annualized for periods of less than one year. Brokerage commissions that a shareholder may pay are not              
 reflected. Total return on market value does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the sale of Fund shares. Total return on net asset value uses the same methodology, but with use of net asset value  
 for the beginning, ending and reinvestment values.                                                                                                                                                                                                       |
| 3 | The                                                                                                                                                                                                                                                      
 index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.                                                                           |

For information regarding the indexes and certain key investment terms, see Key Investment Terms starting on page 18. 7

#### Diversified Income &
Convertible Fund (ACV)

### MANAGER’S DISCUSSION OF FUND