Virtus Convertible & Income Fund II
Virtus Convertible & Income Fund II
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.
Contact Us
Contact your financial representative for more information.
Email or call for service at
1-866-270-7788
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
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
Michael E. Yee
Managing Director, Lead Portfolio Manager – Income & Growth
Industry start date: 1994
Start date as fund Portfolio Manager: 2022
David J. Oberto
Senior Vice President, Lead Portfolio Manager – Income & Growth
Industry start date: 2003
Start date as fund Portfolio Manager: 2022
Ethan Turner, CFA
Vice President, Portfolio Manager – Income & Growth
Industry start date: 2005
Start date as fund Portfolio Manager: 2023
Performance
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
Expenses
Portfolio Breakdown (% Fund)
| Convertible Securities | |
| High Yield Bonds | |
| Cash and Equivalents | |
| Other |
Allocations are subject to change daily.
Ratings Distribution (% Fixed Income)
| AAA | |
| AA | |
| A | |
| BBB | |
| BB | |
| B | |
| CCC and Below | |
| Not Rated |
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)
| Information Technology | |
| Consumer Discretionary | |
| Industrials | |
| Communication Services | |
| Financials | |
| Energy | |
| Health Care | |
| Real Estate | |
| Utilities | |
| Materials | |
| Consumer Staples |
Allocations are subject to change daily.
Top Holdings (% Fund)
| Security | |
|---|---|
| Liberty Broadband Corporation. 3.125% 31-mar-2053 | |
| Wells Fargo & Company 7.5 % Non Cum Perp Conv Pfd Registered Shs A Series L | |
| Palo Alto Networks, Inc. 0.375% 01-jun-2025 | |
| Uber Technologies, Inc. 0.0% 15-dec-2025 | |
| Welltower Op Llc 2.75% 15-may-2028 | |
| Southern Company 3.875% 15-dec-2025 | |
| Zillow Group, Inc. 2.75% 15-may-2025 | |
| Akamai Technologies, Inc. 0.125% 01-may-2025 | |
| On Semiconductor Corporation 0.5% 01-mar-2029 | |
| CCF Holdings LLC |
Holdings are subject to change.
Assets (in millions)
(as of 11/30/2023)| Total Net Assets | $246.55 |
| 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 | $402.55 |
Effective Leverage
(as of 11/30/2023)| Preferred Assets | 32.54% |
| Borrowed Debt | 6.21% |
| Total Effective Leverage | 38.75% |
Borrowed Debt Leverage Statistics
(as of 11/30/2023)| 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 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 |
|---|---|---|---|
| November | 11/10/2023 | 12/01/2023 | $0.030000 |
| October | 10/11/2023 | 11/01/2023 | $0.030000 |
| September | 09/08/2023 | 10/02/2023 | $0.030000 |
| August | 08/10/2023 | 09/01/2023 | $0.030000 |
| July | 07/12/2023 | 08/01/2023 | $0.030000 |
| June | 06/09/2023 | 07/03/2023 | $0.030000 |
| May | 05/10/2023 | 06/01/2023 | $0.030000 |
| April | 04/12/2023 | 05/01/2023 | $0.030000 |
| March | 03/10/2023 | 04/03/2023 | $0.037500 |
| February | 02/10/2023 | 03/01/2023 | $0.037500 |
| January | 01/19/2023 | 02/01/2023 | $0.037500 |
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
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 email or call for service at 1-866-270-7788.
Risk Considerations
Distributions
| December 1, 2023 - Preferred Shares | |
| November 16, 2023 | |
| September 1, 2023 - Preferred Shares | |
| August 31, 2023 | |
| June 1, 2023 - Preferred Shares | |
| May 25, 2023 | |
| March 3, 2023 | |
| February 28, 2023 - Preferred Shares | |
| January 20, 2023 - NCV and NCZ Auction Rate Preferred Securities Max Rate | |
| December 2, 2022 | |
| December 1, 2022 - Preferred Shares | |
| December 17, 2021 | |
| December 1, 2021 | |
| December 1, 2021 - Preferred Shares | |
| November 1, 2021 | |
| October 1, 2021 |
Holdings
Section 19a Notices
| 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 | |
| May 2022 | |
| April 2022 | |
| March 2022 | |
| February 2022 | |
| January 2022 | |
| December 2021 |
News Releases/Communications
| 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 - Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II Announce Tender Offers for Outstanding Auction Rate Preferred Shares | |
| September 28, 2022 - Certain Virtus Closed-End Funds Announce Results of Shareholder Meeting | |
| 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 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 | |
| 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 | |
| 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 | |
| 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 |