SCHEDULE: Morgan Stanley Discloses 6.9% Stake in Virtus Fund II

Morgan Stanley and its subsidiary, Morgan Stanley Smith Barney LLC, have disclosed a 6.9% beneficial ownership stake in Virtus Convertible & Income Fund II's Series A Cumulative Preferred Shares.

Summary

• Morgan Stanley and Morgan Stanley Smith Barney LLC collectively hold 302,449.00 shares of Virtus Convertible & Income Fund II's 5.50% Series A Cumulative Preferred Shares.
• This ownership represents 6.9% of the total class of securities.
• The filing is a Schedule 13G, indicating passive beneficial ownership, not for the purpose of changing or influencing control of the issuer.
• The date of the event requiring this filing was June 30, 2025.

Sentiment

Score: 6

Explanation: The disclosure of a significant passive stake by a reputable financial institution is generally a neutral to slightly positive signal, indicating institutional interest without implying active management or strategic changes.

Positives

• A significant beneficial ownership stake by a major financial institution like Morgan Stanley could be interpreted as a vote of confidence in the Virtus Convertible & Income Fund II's preferred shares.

Future Outlook

This filing is an ownership disclosure and does not contain forward-looking statements or guidance regarding the issuer's future performance or strategy.

Industry Context

Large financial institutions frequently hold significant, passive stakes in various investment funds and companies as part of their ordinary course of business, often on behalf of clients or for investment purposes. This filing is consistent with such practices within the financial services industry.

Related Party Transactions

• Morgan Stanley Smith Barney LLC, one of the reporting persons, is a wholly-owned subsidiary of Morgan Stanley, the other reporting person. The securities are owned or deemed beneficially owned by Morgan Stanley Smith Barney LLC.

Stakeholder Impact

• Shareholders of Virtus Convertible & Income Fund II may view Morgan Stanley's significant stake as a positive indicator of institutional confidence in the fund's preferred shares.

Key Dates

Keywords

Virtus Convertible & Income Fund II, Morgan Stanley, Morgan Stanley Smith Barney LLC, Schedule 13G, beneficial ownership, preferred shares, investment, financial services