Virtus Convertible & Income Fund II (NCZ) Stock Price, News & Analysis

Virtus Convertible & Income Fund II (NYSE: NCZ) is a diversified, closed-end management investment company. According to available information, the fund has an investment objective to provide total return through a combination of capital appreciation and high current income. It is associated with the finance and insurance sector and is classified within securities and related investment activities.

The fund is described as diversified, with a portfolio of investments that includes sector exposure in areas such as healthcare services, media, oil, gas, and consumable fuels, among others. This diversified approach reflects a strategy that combines different industries within a single closed-end fund structure.

Virtus Convertible & Income Fund II is listed on the New York Stock Exchange under the symbol NCZ. The fund is advised by Virtus Investment Advisers (also referenced as Virtus Investment Advisers, LLC or Inc. in the news items), which is identified as a registered investment adviser affiliated with Virtus Investment Partners, Inc. The fund’s subadviser is Voya Investment Management, which is responsible for subadvisory investment management services as described in the news releases.

In addition to its common shares, Virtus Convertible & Income Fund II has issued 5.500% Series A Cumulative Preferred Shares, which trade on the New York Stock Exchange under the symbol NCZ PR A. These preferred shares are rated “A” by Fitch Ratings and were issued on September 11, 2018 at $25.00 per share. The preferred shares pay distributions quarterly and are described in multiple press releases that outline their dividend rate and distribution schedule. The preferred shares are callable at any time at the liquidation value of $25.00 per share plus accrued dividends.

The fund’s stated objective of total return through capital appreciation and high current income, combined with its diversified sector exposure and closed-end structure, positions it as an investment vehicle that blends income-oriented and total-return characteristics within a single listed fund. Shares of closed-end funds, including Virtus Convertible & Income Fund II, may trade at a premium or discount to their net asset value, and the fund’s disclosures emphasize that an investment is subject to risk, including the possible loss of principal.

Fund communications highlight that more detailed information about the fund’s investment objective and risks is available in its annual report. These communications also note that copies of the most recent annual report may be obtained free of charge by contacting shareholder services as described in the fund’s public announcements.

Capital structure and distributions

The fund has both common shares and the 5.500% Series A Cumulative Preferred Shares. The preferred shares have an annual dividend rate of $1.375 per share and pay distributions on a quarterly schedule, with accrual periods and payable dates described in recurring press releases. These distributions are characterized as cash distributions to preferred shareholders of record on specified dates.

In a separate announcement, Virtus Convertible & Income Fund II disclosed that a 1-for-4 reverse stock split of the issued and outstanding common shares of NCZ became effective as of the start of trading on February 10, 2025. As a result of this reverse stock split, one new common share was issued for every four outstanding common shares. The fund retained its trading symbol NCZ and was assigned a new CUSIP number in connection with the reverse split. The announcement explains that, immediately following the reverse stock split, each shareholder of record held the same percentage of the fund’s outstanding common shares as before the split.

The reverse stock split notice states that the transaction was intended to result in a higher per-share market price for the common shares and that it was anticipated that a higher per-share market price could broaden the range of potential investors and potentially improve the market and liquidity for the common shares. The notice also indicates that the reverse split may reduce certain per-share transaction fees and other administrative costs, such as stock exchange listing fees. Shareholders were to be paid cash for any fractional shares resulting from the reverse split, except for shareholders participating in the fund’s Automatic Dividend Reinvestment Plan, who would receive fractional shares.

Risk considerations

Fund communications consistently emphasize that an investment in Virtus Convertible & Income Fund II is subject to risk, including the risk of possible loss of principal. They state that a fund’s shares may be worth less upon their sale than what an investor paid for them. The disclosures also note that shares of closed-end funds may trade at a premium or discount to net asset value, which is a structural feature of closed-end funds.

These communications further explain that the distributions reported in certain notices are estimates and are not provided for tax reporting purposes. The actual amounts and sources of distributions for tax purposes depend on the fund’s investment experience during its fiscal year and may be subject to change based on tax regulations. Investors are informed that a Form 1099-DIV for the calendar year will specify what distributions to report for federal income tax purposes.

Investment objective and management

Across multiple press releases, Virtus Convertible & Income Fund II reiterates that its investment objective is to provide total return through a combination of capital appreciation and high current income. The fund’s management structure involves Virtus Investment Advisers as the investment adviser and Voya Investment Management as the subadviser. These roles are highlighted in the context of both the fund’s common shares and its preferred shares.

The fund’s communications direct interested parties to its annual report for more information about the investment objective and risks. They also indicate that the most recent annual report can be accessed through the closed-end funds section referenced in the fund’s announcements or obtained free of charge via shareholder services.

Industry classification and portfolio sectors

Virtus Convertible & Income Fund II is associated with the finance and insurance sector and is classified in an industry category related to securities and commodity exchanges or securities-related activities. According to the available description, the fund’s portfolio includes investments in sectors such as healthcare services, media, oil, gas, and consumable fuels, among others. This reflects a diversified approach across multiple industries within the fund’s investment mandate.

Key structural features summarized

• Diversified, closed-end management investment company.
• Investment objective to provide total return through a combination of capital appreciation and high current income.
• Listed on the New York Stock Exchange under the symbol NCZ.
• Advised by Virtus Investment Advisers and subadvised by Voya Investment Management.
• Portfolio exposure includes sectors such as healthcare services, media, oil, gas, and consumable fuels, among others.
• Has issued 5.500% Series A Cumulative Preferred Shares (NCZ PR A), rated “A” by Fitch Ratings, paying quarterly distributions and callable at liquidation value plus accrued dividends.
• Implemented a 1-for-4 reverse stock split of common shares effective February 10, 2025, with shareholders maintaining the same percentage ownership after the split.
• Fund communications highlight that shares of closed-end funds may trade at a premium or discount to net asset value and that investments are subject to the risk of loss of principal.