SCHEDULE: Morgan Stanley Boosts Stake in Virtus Income Fund II

Morgan Stanley and its subsidiary Parametric Portfolio Associates LLC have disclosed an 11.3% beneficial ownership stake in Virtus Convertible & Income Fund II.

Summary

• Morgan Stanley and its wholly-owned subsidiary, Parametric Portfolio Associates LLC, jointly reported beneficial ownership of 2,156,244 common shares of Virtus Convertible & Income Fund II.
• This aggregate amount represents 11.3% of the issuer's common shares outstanding.
• The reporting entities hold 254,068 shares with shared voting power and 2,156,244 shares with shared dispositive power.
• The filing is an Amendment No. 4 to Schedule 13G, indicating a change in previously reported beneficial ownership.

Sentiment

Score: 5

Explanation: The filing is a factual disclosure of beneficial ownership, which is neutral in sentiment. It does not contain positive or negative performance indicators.

Risks

• The filing includes a standard warning that intentional misstatements or omissions of fact constitute federal criminal violations (see 18 U.S.C. 1001).

Future Outlook

NA

Management Comments

• Morgan Stanley and Parametric Portfolio Associates LLC certify that the securities were acquired and are held in the ordinary course of business.
• The securities were not acquired and are not held for the purpose or with the effect of changing or influencing the control of the issuer, nor in connection with any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 14a-11.

Industry Context

NA

Related Party Transactions

• Parametric Portfolio Associates LLC, one of the reporting persons, is a wholly-owned subsidiary of Morgan Stanley, the other reporting person, indicating a related party relationship in their joint beneficial ownership.

Stakeholder Impact

• Shareholders may view the significant institutional ownership by Morgan Stanley and its subsidiary as a sign of confidence in Virtus Convertible & Income Fund II.

Key Dates

Keywords

Virtus Convertible & Income Fund II, Morgan Stanley, Parametric Portfolio Associates LLC, Schedule 13G, Beneficial Ownership, Common Shares, Investment Fund, Institutional Ownership