| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 155.43 | 974 |
| Intrinsic value (DCF) | 189179.41 | 1307291 |
| Graham-Dodd Method | 11.99 | -17 |
| Graham Formula | 384.15 | 2555 |
Virtus Convertible & Income Fund II (NCZ) is a closed-end fixed income mutual fund managed by Allianz Global Investors Fund Management LLC, focusing on convertible securities and non-convertible high-yield bonds in the U.S. market. The fund targets below-investment-grade bonds with maturities typically between five to ten years, employing a bottom-up, fundamental analysis approach to portfolio construction. Operating in the Financial Services sector under Asset Management - Income, NCZ provides investors with exposure to a diversified mix of fixed-income instruments, aiming for income generation and capital appreciation. With a market cap of approximately $228.5 million, the fund has historically delivered a dividend yield of $2.16 per share, appealing to income-focused investors. NCZ’s strategy leverages proprietary research models, distinguishing it in a competitive landscape dominated by larger asset managers. The fund’s performance is closely tied to credit markets and interest rate trends, making it a strategic option for investors seeking hybrid fixed-income exposure.
Virtus Convertible & Income Fund II (NCZ) offers a niche investment opportunity in convertible and high-yield bonds, appealing to income-seeking investors with its $2.16 annual dividend per share. The fund’s focus on below-investment-grade securities introduces credit risk, but its diversified approach and active management mitigate some downside. With a beta of 1.24, NCZ exhibits higher volatility than the broader market, reflecting its sensitivity to interest rate fluctuations and credit spreads. The absence of leverage (zero total debt) is a positive, but the fund’s performance remains tied to macroeconomic conditions. Investors should weigh the attractive yield against potential risks in a rising-rate or recessionary environment. NCZ’s small size ($228.5M market cap) may limit liquidity compared to larger peers, but its specialized strategy could offer alpha in favorable credit cycles.
Virtus Convertible & Income Fund II (NCZ) competes in the convertible and high-yield bond segment, differentiating itself through a hybrid strategy that blends convertible securities with non-convertible junk bonds. Its competitive edge lies in Allianz Global Investors’ proprietary research and bottom-up stock selection, which aims to identify mispriced credit opportunities. However, NCZ’s small scale ($228.5M AUM) limits its resources compared to larger asset managers like PIMCO or BlackRock, which benefit from economies of scale and broader distribution networks. The fund’s niche focus on sub-investment-grade debt exposes it to higher default risks, though its convertible holdings provide equity upside participation—a unique feature relative to pure high-yield funds. NCZ’s zero leverage policy is a conservative strength, but its 1.24 beta suggests higher volatility than many fixed-income alternatives. In a crowded market, NCZ’s appeal hinges on its active management and yield-centric approach, but it lacks the brand recognition and diversified product suite of mega-cap competitors.