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Closed-End Fund Fixed Income Hybrid

Virtus Convertible & Income Fund II

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Ticker
CUSIP
Inception
Market Price
$
(as of )
Premium/Discount
%
Managed Assets
$ (as of )
Net Assets
$ (as of )
Average Daily Volume
(as of )
Shares Outstanding
Distribution Frequency

Portfolio Overview

Investment Overview

The Fund seeks total return through a combination of capital appreciation and high current income.

Invests in a diversified portfolio of domestic convertible securities and high-yield bonds rated below investment grade.

Under normal circumstances, the Fund will invest at least 80% of its total assets in a diversified portfolio of convertible securities and non-convertible income-producing securities and also seeks to invest at least 50% of its total assets in convertible securities, but determines its allocation based on changes in equity prices, changes in interest rates, and other economic and market factors. For the convertible portion, Voya Investment Management seeks to capture the upside potential of equities with potentially less volatility than a pure stock investment.

In searching for investment opportunities, the manager looks for issuers that will successfully adapt to change, exceed minimum credit statistics, and exhibit the most promising operating performance potential.

Management Team

Investment Partner

Voya Investment Management

Voya Investment Management (Voya IM) strives to help investors push what's possible. As the asset management business of Voya Financial (NYSE: VOYA), Voya IM seeks to understand and anticipate client needs, delivering differentiated solutions across public and private fixed income, equity, and multi-asset platforms, including private markets and alternatives.


Learn more about Voya Investment Management

Investment Professionals

Kass, Justin

Justin M. Kass, CFA

Senior Managing Director, Chief Investment Officer, Co-Head of Income & Growth

Industry start date: 1998
Start date as fund Portfolio Manager: 2003

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Yee, Michael

Michael E. Yee

Managing Director, Lead Portfolio Manager – Income & Growth

Industry start date: 1994
Start date as fund Portfolio Manager: 2022

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Oberto, David

David J. Oberto

Senior Vice President, Lead Portfolio Manager – Income & Growth

Industry start date: 2003
Start date as fund Portfolio Manager: 2022

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Ethan Turner

Ethan Turner, CFA

Vice President, Portfolio Manager – Income & Growth

Industry start date: 2005
Start date as fund Portfolio Manager: 2023

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Performance & Risk

Performance

As of
As of

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost.

Performance reflects the deduction of fund operating expenses. Performance does not reflect the incurrence of brokerage expenses, which typically apply to exchange traded products. Total return net of brokerage expenses would be lower than the total returns on market value shown in the table.

Expenses

Portfolio

Portfolio Breakdown (% Fund)

(as of 03/28/2024)
Convertible Securities
59.33
 59.33%
High Yield Bonds
37.96
 37.96%
Other
1.58
 1.58%
Cash and Equivalents
1.13
 1.13%

Allocations are subject to change daily.

Ratings Distribution (% Fixed Income)

(as of 03/28/2024)
AAA
0.00
 0.00%
AA
0.00
 0.00%
A
1.73
 1.73%
BBB
7.91
 7.91%
BB
22.26
 22.26%
B
15.29
 15.29%
CCC and Below
0.85
 0.85%
Not Rated
51.95
 51.95%

Credit ratings issued by Nationally Recognized Statistical Rating Organizations assess the credit worthiness of the issuers of the underlying securities and not to the Fund or its shares. Ratings are measured using a scale that ranges from AAA (highest) to NR (not rated). Not rated securities do not necessarily indicate low quality. The security's credit rating does not eliminate risk and credit ratings are subject to change. Credit Quality reflects the higher of the ratings of Standard & Poor's Corporation and Moody's Investors Service, Inc. Only one rating will be utilized if only one is available. Ratings are then adjusted to the Standard & Poor's rating tiers shown. Ratings are subject to change.

Sector Allocation (% Invested Assets)

(as of 03/28/2024)
Information Technology
18.86
 18.86%
Consumer Discretionary
18.57
 18.57%
Industrials
17.84
 17.84%
Financials
10.54
 10.54%
Health Care
9.05
 9.05%
Communication Services
7.76
 7.76%
Energy
5.55
 5.55%
Utilities
4.18
 4.18%
Real Estate
3.89
 3.89%
Materials
3.01
 3.01%
Consumer Staples
0.76
 0.76%

Allocations are subject to change daily.

Top Holdings (% Fund)

(as of 03/28/2024)
Security
Wells Fargo & Company 7.5 % Non Cum Perp Conv Pfd Registered Shs A Series L
3.15
 3.15%
Block, Inc. 0.125% 3/1/2025
2.22
 2.22%
Uber Technologies, Inc. 0.0% 12/15/2025
2.19
 2.19%
Southern Company 3.875% 12/15/2025
2.14
 2.14%
Welltower Inc. 2.75% 5/15/2028
2.04
 2.04%
Affirm Holdings, Inc. 0.0% 11/15/2026
1.89
 1.89%
Pg&e Corporation 4.25% 12/1/2027
1.86
 1.86%
Microstrategy Incorporated 0.0% 2/15/2027
1.76
 1.76%
Global Payments Inc. 1.5% 3/1/2031
1.75
 1.75%
Royal Caribbean Cruises Ltd
1.68
 1.68%

Holdings are subject to change.

Leverage

Assets (in millions)

(as of 05/31/2024)
Total Net Assets $247.98
Total Preferred Assets $131.00
 Mandatory Redeemable Preferred Shares $22.00
 Series A Cumulative Preferred Shares $109.00
Total Borrowed Debt $25.00
Total Managed Assets $403.98

Effective Leverage

(as of 05/31/2024)
Preferred Assets 32.43%
Borrowed Debt 6.19%
Total Effective Leverage 38.62%

Borrowed Debt Leverage Statistics

(as of 05/31/2024)
Short Term Notes $0.00
Short Term Loan $25.00
Assets (in Millions):

Total Net Assets: includes net assets applicable to Common Shareholders
Total Preferred Assets: consists of the value of: Auction Rate Preferred Shares, and/or Series A Cumulative Preferred Shares, and/or Mandatory Redeemable Preferred Shares
Total Managed Assets: Total Net Assets + Total Preferred Assets + Total Borrowed Debt

Effective Leverage:

Preferred Assets: % consists of Total Preferred Assets divided by Total Managed Assets
Borrowed Debt: % is short term debt + long term debt divided by Total Managed Assets
Total Effective Leverage (%) consists of Total Preferred Assets + Total Borrowed Debt, as applicable, divided by Total Managed Assets

Distributions

Ex. Dividend Date
Record Date
Payable Date
Frequency
Latest($/Share)
YTD($/Share)
Market Price Distribution Rate
(as of )

Distributions are not guaranteed and are subject to change.

Distributions may be comprised of net investment income, capital gains and/or return of capital. Please refer to Section 19a notices below, if applicable for estimates on the composition of the distribution.

Year-to-Date Distribution History

Month Ex-Date Payable Date Distribution
June 06/13/2024 06/27/2024 $0.030000
May 05/10/2024 05/30/2024 $0.030000
April 04/10/2024 04/29/2024 $0.030000
March 03/08/2024 03/28/2024 $0.030000
February 02/09/2024 02/28/2024 $0.030000
January 01/11/2024 01/30/2024 $0.030000

Ex-Date Record Date Payable Date Total Distribution ($/Share) Note



You should not draw any conclusions about the Fund’s investment performance from its distributions. Please view the Fund’s Section 19a notices below, if applicable, which set forth information regarding the estimated composition of the distributions, including any portion that may constitute a return of capital.

The distribution table above is for informational purposes only and should not be used for tax reporting purposes. A Form 1099 DIV (or substitute Form 1099 DIV) will be sent to shareholders at the beginning of each year that will state the federal tax status of distributions received during the previous calendar year. Please consult a tax professional regarding specific tax matters.

Form 8937 Organizational Actions

Automatic Reinvestment Plan

This plan offers shareholders a convenient way to acquire additional shares of the fund. Registered holders will be automatically placed in the Plan. If shares are held at a brokerage firm, contact your broker about participation.

Net Asset Value vs. Market Price

Net Asset Value (NAV) represents the total value of all assets held by the Fund (minus its total liabilities), divided by the total number of common shares outstanding. The net asset value returns reflect the performance of the manager. Market price is the price at which investors may purchase or sell shares of the Fund. Market price is determined in the open market by buyers and sellers, based on supply and demand. The Fund’s Market Price fluctuates throughout the day and may differ from its underlying NAV. Shares of the Fund may trade at a premium (higher than) or a discount (lower than) to NAV. This characteristic is a risk separate and distinct from the risk that the Fund’s net asset value could decline. The Fund has no control over the market price. The difference between the market price and the NAV (Premium/Discount) is expressed as a percentage of NAV.

Disclosures

There can be no assurance that the fund will achieve its investment objectives.

This information does not represent an offer, or the solicitation of an offer, to buy or sell securities of the Fund.

Contact your financial representative for more information, or  or call for service at 1-866-270-7788.

Risk Considerations

Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the portfolio.
Leverage: When the Fund leverages its portfolio, the Fund may be less liquid and/or may liquidate positions at an unfavorable time, and the value of the Fund's shares will be more volatile and sensitive to market movements.
Preferred Stocks: Preferred stocks may decline in price, fail to pay dividends, or be illiquid.
Lower-Rated Securities: Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities.
Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict, terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio's manager(s) to invest its assets as intended.
Closed-End Funds: Closed-end funds may trade at a discount or premium from their net asset values, which may affect whether an investor will realize gains or losses. They may also employ leverage, which may increase volatility.
No Guarantee: There is no guarantee that the portfolio will meet its objective.

Related Literature

Fact Sheet

Virtus Convertible & Income Fund II Fact Sheet

Distributions

June 6, 2024
June 3, 2024 - Preferred Shares
March 1, 2024 - Preferred Shares
March 1, 2024
December 1, 2023 - Preferred Shares
November 16, 2023
September 1, 2023 - Preferred Shares
August 31, 2023
June 1, 2023 - Preferred Shares
January 20, 2023 - NCV and NCZ Auction Rate Preferred Securities Max Rate

Holdings

Virtus Convertible & Income Fund II Monthly Holdings
Virtus Convertible & Income Fund II Holdings Fiscal Q1
Virtus Convertible & Income Fund II Holdings Fiscal Q3

Automatic Reinvestment

Dividend Reinvestment Plan (AIO/CBH/NCV/NCZ/ACV/NIE/NFJ)

Section 19a Notices

May 2024
April 2024
March 2024
February 2024
January 30, 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022 (Record Date 11/14/2022)
December 2022 (Record Date 11/15/2022)
November 2022
September 2022
August 2022
July 2022
June 2022

News Releases/Communications

June 4, 2024 - Virtus Closed-End Funds Announce Results of Joint Annual Meeting of Shareholders
April 10, 2024 - Joint Annual Meeting of Shareholders Proxy Statement
May 26, 2023 – Virtus Convertible & Income Fund and Virtus Convertible & Income Fund II Announce Private Placement of Mandatory Redeemable Preferred Shares
May 23, 2023 - Virtus Closed-End Funds Announce Results of Joint Annual Meeting of Shareholders
April 11, 2023 - Joint Annual Meeting of Shareholders Proxy Statement
March 23, 2023 - Certain Virtus Closed-End Funds Announce Date of Shareholder Meetings
March 3, 2023 – Virtus Convertible & Income Fund and Virtus Convertible & Income Fund II Announce Adjustment to Monthly Distributions
January 27, 2023 - Certain Virtus Closed-End Funds Name Ethan Turner as Portfolio Manager
January 4, 2023 - Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II Announce Redemption of Remaining Auction Rate Preferred Shares
November 3, 2022 – NCV & NCZ Announce Final Results of ARPS Tender Offer and NCZ Declares October Distribution; Starts Process to Pay Previously Declared Common Share Distribution
October 12, 2022 - Virtus Convertible & Income Fund II Postpones Record and Ex-Dividend Dates for Monthly Distribution on Common Shares
October 3, 2022 - Virtus Convertible & Income Fund II Tender Offer to Purchase Auction Rate Preferred Shares
October 3, 2022 - Virtus Convertible & Income Fund II Postpones Monthly Distribution on Common Shares
October 3, 2022 - Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II Commence Tender Offers for Outstanding Auction Rate Preferred Shares
September 28, 2022 - Certain Virtus Closed-End Funds Announce Results of Shareholder Meeting
September 28, 2022 - Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II Announce Tender Offers for Outstanding Auction Rate Preferred Shares
August 4, 2022 - Joint Special Meeting of Shareholders Proxy Statement
July 21, 2022 - Certain Virtus Closed-End Funds Announce Shareholder Proposal For New Subadvisory Agreements
July 13, 2022 - Virtus Closed-End Funds Announce Shareholder Meeting Results
July 8, 2022 - Virtus Convertible & Income Fund II Announces Payment of Previously Declared Monthly Common Share Distribution Reconfirms August 1 Distribution
June 8, 2022 - Virtus Closed-End Funds Announce Fund Name Changes
May 31, 2022 - Virtus AllianzGI Closed-End Funds Joint Proxy Statement
May 18, 2022 - Virtus AllianzGI Closed-End Funds Announce Future Change in Subadviser
July 16, 2021 - Certain Virtus AllianzGI Closed-End Funds Announce Future Change In Portfolio Management Team
June 8, 2021 - Virtus AllianzGI Closed-End Funds Joint Annual Meeting of Shareholders Proxy Statement
January 27, 2021 - AllianzGI Closed-End Funds Provide Additional Information on Fund Name Change
AllianzGI Convertible Income II Press Release November 2019
AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release June 2020
AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ January 2020
AllianzGI Monthly Dividend Press Release For ACV CBH NCV NCZ December 2019
AllianzGI Monthly Dividend Press Release For AIO NCV NCZ CBH ACV October 2020
NCV NCZ ACV CBH Press Release March 2019
AllianzGI CEF Second Adjournment of Special Meeting - Press Release - 12.24.20
AllianzGI Convertible Income Fund II Press Release August 2020
AllianzGI Convertible Income Fund II Press Release June 2020
AllianzGI Convertible Income Fund II Press Release May 31 2019
AllianzGI Monthly Dividend Press Release For ACV AIO NCV NCZ CBH August 2020
AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release March 2020
AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release February 2020
AllianzGI Monthly Dividend Press Release For ACV CBH NCV NCZ October 2019
AllianzGI Monthly Dividend Press Release NCZ NCV ACV CBH AIO For January 2021
NCV NCZ ACV CBH Press Release September 2019
ACV, AIO, CBH, NCV, NCZ - Press Release
AllianzGI Convertible Income Fund II NCZ Press Release Form 8K
AllianzGI Convertible Income Fund II Press Release December 2020
AllianzGI Convertible Income Fund II Press Release Results May 2020
AllianzGI Convertible Income II Press Release February 2020
AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release July 2020
AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release May 2020
AllianzGI Monthly Dividend Press Release For ACV CBH NCV NCZ August 2019
AllianzGI Monthly Dividend Press Release For AIO NCV NCZ CBH ACV December 2020
AllianzGI NCV NCZ Press Release Tender Offer Commencement 6.27.18
Allianz CEF Adjournment of Special Meeting - Press Release
AllianzGI Convertible Income Fund II Press Release April 14 2020 Payment For March Dividend
AllianzGI Convertible Income Fund II Press Release Declares Monthly Dividend
AllianzGI Convertible Income Fund II Press Release April 2020 Postpone Payment Revised
NCZ Preferred Shares Dividend Notice Press Release March 2020
NCZ Press Release 8.31.19
NCZ Preferred Shares Dividend Notice Press Release December 2019
NCZ Preferred Shares Dividend Notice Press Release September 2019
NCZ Preferred Shares Dividend Notice Press Release March 2019
NCV And NCZ Announce CPS Repurchase Plan Press Release
NCZ Preferred Shares Dividend Notice Press Release September 2020
NCZ Preferred Shares Dividend Notice Press Release June 2020
January 22, 2021 - AllianzGI Closed-End Funds Announce Fund Name Changes

Governance

Procedures for Complaints Regarding Accounting, Internal Accounting Controls or Auditing Matters
Governance & Nominating Committee Charter
Audit Committee Charter

Financial Materials

ACV AIO CBH NCV NCZ NIE NFJ Annual Report
AIO CBH ACV NCV NCZ NIE NFJ Semi-Annual Report
AIO CBH NCV NCZ ACV NFJ & NIE 2023 Tax Information