Virtus Convertible & Income Fund and Virtus Convertible & Income Fund II Announce Adjustments to Monthly Distributions

Rhea-AI Summary

Virtus Convertible & Income Fund (NYSE: NCV) and Virtus Convertible & Income Fund II (NYSE: NCZ) announced a 20% decrease in their monthly distributions, effective from the April distribution payable on May 1, 2023. For NCV, the new distribution will be $0.034 per share, down from $0.0425. Similarly, NCZ's distribution will drop to $0.03 from $0.0375. The adjustment reflects increased costs of leverage and current earnings in the prevailing market environment. Additionally, the reported distribution amounts are estimates and subject to tax regulations, with final amounts determined by the funds' investment performance.

Positive

• None.

Negative

• 20% reduction in monthly distributions for both NCV and NCZ.
• Decrease in NCV's distribution from $0.0425 to $0.034 per share.
• Decrease in NCZ's distribution from $0.0375 to $0.03 per share.

HARTFORD, Conn.--(BUSINESS WIRE)-- Virtus Convertible & Income Fund (NYSE: NCV) and Virtus Convertible & Income Fund II (NYSE: NCZ) announced that each fund will adjust the monthly distribution of its respective common shares effective with the April distribution payable May 1, 2023:

Virtus Convertible & Income Fund:

Ticker	Current Distribution Amount	New Distribution Amount	Ex-Date	Record Date	Payable Date
NCV	$0.0425	$0.034	April 12, 2023	April 13, 2023	May 1, 2023
NCV	$0.0425	$0.034	May 10, 2023	May 11, 2023	June 1, 2023
NCV	$0.0425	$0.034	June 9, 2023	June 12, 2023	July 3, 2023

Virtus Convertible & Income Fund II:

Ticker	Current Distribution Amount	New Distribution Amount	Ex-Date	Record Date	Payable Date
NCZ	$0.0375	$0.03	April 12, 2023	April 13, 2023	May 1, 2023
NCZ	$0.0375	$0.03	May 10, 2023	May 11, 2023	June 1, 2023
NCZ	$0.0375	$0.03	June 9, 2023	June 12, 2023	July 3, 2023

The 20% decrease in each fund’s monthly distribution reflects the increase in each fund’s respective cost of leverage, current and expected earnings, and the overall market environment.

The amounts of distributions reported in this notice are estimates only and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax purposes will depend on the fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund or your broker will send a Form 1099-DIV for the calendar year that will tell you what distributions to report for federal income tax purposes.

About the Funds

Virtus Convertible & Income Fund (NCV) and Virtus Convertible & Income Fund II (NCZ) each have an investment objective to provide total return through a combination of capital appreciation and high current income. Virtus Investment Advisers, Inc. is the investment adviser and Voya Investment Management is the subadviser to each fund. For more information on the funds, contact Shareholder Services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the closed-end funds section of virtus.com.

Fund Risks

An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund’s shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about each fund’s investment objective and risks, please see the fund’s annual report. A copy of the most recent annual report may be obtained free of charge by contacting Shareholder Services.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230303005050/en/

For Further Information:

Shareholder Services

(866) 270-7788

closedendfunds@virtus.com

Source: Virtus Convertible & Income Fund and Virtus Convertible & Income Fund II

FAQ

What changes were announced for Virtus Convertible & Income Fund (NCV)?

NCV announced a 20% decrease in its monthly distribution, reducing it from $0.0425 to $0.034 per share, effective with the April distribution payable on May 1, 2023.

What distribution adjustment was made for Virtus Convertible & Income Fund II (NCZ)?

NCZ will also see a 20% decrease in its monthly distribution, from $0.0375 to $0.03 per share, effective with the April distribution payable on May 1, 2023.

When is the payable date for the new distribution amounts for NCV and NCZ?

The payable date for the new distribution amounts for both NCV and NCZ is May 1, 2023.

What are the reasons for the distribution decrease for NCV and NCZ?

The distribution decrease is due to increased costs of leverage, current earnings, and the overall market environment.