Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 6

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 6
---
 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 monthly distribution at a rate of $0.15 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.

2</div>

Artificial Intelligence & Technology Opportunities Fund (AIO) 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  | Since     
 Inception 
 10/31/19  |
| Market                                                                          
 Value1,2                                                                        | 45.60% | 17.55% | 16.53%    |
| Net                                                                             
 Asset Value1,2                                                                  | 23.83% | 14.02% | 14.41%    |
| Composite:                                                                      
 50% MSCI All Country World Index (net)/ 50% ICE BofA U.S. Convertibles Index1,3 | 18.10% | 10.43% | 11.27%    
 4         |
| MSCI                                                                            
 All Country World Index (net)1,3                                                | 20