CBH Virtus Convertible and Income 2024 Target Term Fund

THE BOARD OF TRUSTEES RECOMMENDS A VOTE “FOR” PROPOSAL 3

The Funds and their management are sensitive to the health and travel concerns of the Funds’ Shareholders and the evolving recommendations from public health officials. Due to the difficulties arising from the novel coronavirus pandemic known as “COVID-19”, the Meetings will be conducted in person and virtually via webcast. Any Shareholder wishing to participate in the Meetings by means of remote communication can do so.

TO PARTICIPATE IN THE VIRTUAL SPECIAL MEETINGS

Registered

Beneficial

To Vote at the Virtual Meeting

On July 7, 2020, Allianz Global Investors U.S. LLC (“AllianzGI U.S.”) announced that it had agreed to a strategic partnership with Virtus Investment Partners, Inc., which operates a multi-boutique asset management business. Central to the strategic partnership, Virtus Investment Advisers, Inc. (“Virtus”) will become investment adviser to certain AllianzGI U.S.’s retail open- and closed-end funds, as well as the named investment adviser to AllianzGI U.S.’s retail separate account clients, while AllianzGI U.S. assumes the role of sub-adviser to these client assets. The transition to these new arrangements is expected to be completed at a time agreed by AllianzGI U.S. and Virtus (the “Closing”) prior to the end of 2020.

This FAQ focuses on matters on which shareholders of the AllianzGI U.S.’s closed-end funds will be asked to vote. Matters pertaining to other AllianzGI products are not addressed here; information on the AllianzGI retail open-end funds, is provided in a separate FAQ.

Virtus is a wholly-owned subsidiary of Virtus Partners, Inc., which in turn is a wholly-owned subsidiary of Virtus Investment Partners, Inc. Virtus acts as the investment adviser for over 40 mutual funds. As of June 30, 2020, Virtus had approximately $32.1 billion in assets under management. Virtus has acted as an investment adviser for over 80 years and is an indirect wholly-owned subsidiary of Virtus Investment Partners, Inc., a publicly traded multi-manager asset management business.

Under the strategic partnership, Virtus will become the investment adviser of each Fund, the governance of each Fund is expected to be more closely aligned with other Virtus-sponsored funds, and the same AllianzGI U.S. portfolio management teams will continue to manage the Funds in a sub-advisory capacity.

AllianzGI U.S.’s portfolio managers will continue to manage the Funds’ investment strategies in a subadvisory capacity either in their current roles as employees or associated persons of AllianzGI U.S. or, in the case of AllianzGI U.S.’s Dallas-based Value Equity U.S. team, as it pertains to the NFJ closed-end fund, as employees of NFJ Investment Group, LLC (the “Virtus Value Equity Subadviser”), a newly formed Virtus affiliated registered investment adviser.

As investment adviser, Virtus would be responsible for overseeing AllianzGI U.S. and a new Virtus-affiliated subadviser for NFJ, including the portfolio management teams of each AllianzGI closed-end fund.

The Funds will convene a joint special meeting of the Funds’ Shareholders, scheduled for October 28, 2020, for purposes of approving a series of changes that will allow a transition (the “Transition”) to a new management structure in line with the recently announced strategic partnership between AllianzGI U.S., the manager of the Funds, and Virtus. Assuming sufficient support for approving the Proposals, the Closing will be effected by AllianzGI U.S. and Virtus thereafter.

The NFJ portfolio management team, to be employed by the Virtus Value Equity Subadviser, is the same portfolio management team currently providing portfolio management to NFJ, as employees of AllianzGI U.S. In connection with the strategic partnership between AllianzGI U.S. and Virtus, that team will no longer be employed by AllianzGI U.S. and will instead be employed by the Virtus Value Equity Subadviser.

Consistent with the proposed subadvisory agreement with the Virtus Value Equity Subadviser, the portfolio management team will continue to provide the same portfolio management services, in the same strategies, for the NFJ closed-end fund, as are currently being provided by AllianzGI U.S. No changes to the portfolio management team or the principal investment strategies or risks of the value equity strategies are expected in connection with the subadvisory agreement.

However, AllianzGI U.S., currently the investment manager, would cease providing services with respect to the value equity strategies. Furthermore, as investment adviser, Virtus would be responsible for overseeing the performance and operations of the Virtus Value Equity Subadviser and AllianzGI U.S. as subadviser.

There will be no changes to the investment teams, investment strategies or investment processes as a result of the Transition. Upon the Closing, it is also expected that the naming convention of the Funds will change. “Virtus” will be inserted before the current name of each of Fund other than NFJ, and “Virtus NFJ” will replace “AllianzGI” in the current name of NFJ. In addition, while it is possible the CUSIP numbers of the Funds may change, the Funds’ ticker symbols should remain the same.

The specific matters on which Shareholders will be asked to vote, all of which are discussed in more detail in the Proxy Statement for the Funds (the “Proposals”), are as follows:

1. Approval of a new Investment Advisory Agreement with Virtus by Shareholders of each Fund;

2A. Approval of a new Subadvisory Agreement with AllianzGI U.S. by Shareholders of each Fund;

2B. Approval of a new Subadvisory Agreement with the Virtus Value Equity Subadviser by Shareholders of NFJ; and

3. To consider and act upon such other matters as may properly come before the Meetings and any adjourned or postponed session thereof.

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The Board of Trustees of each Fund, including the Independent Trustees, unanimously recommends that Shareholders vote FOR the proposals, as applicable.

While AllianzGI U.S. has served the Funds well for many years, it has determined to exit the U.S. fund business except in its role as subadviser. The combination of AllianzGI U.S.’s portfolio management expertise with Virtus’ investment oversight and administration capabilities is intended to result in mutually beneficial growth.

The completion of the Transition is dependent on the mutual agreement of Virtus and AllianzGI U.S. to proceed with their strategic partnership and to transition operational control of the Funds. Even if Shareholders approve the Proposals for a particular Fund, Proposals 1 and 2 will not move forward if Virtus and AllianzGI U.S. do not proceed with the Closing of the Transition. This is because the proposed Transition relates to a new constellation of management arrangements. With respect to each Fund, Proposals 1 and 2 are contingent on one another. Approval of the new investment advisory agreement for each Fund is dependent on approval of the new subadvisory agreement and vice versa; neither Proposal will proceed without approval of the other. Lastly, there may be circumstances where a Fund does not reach a quorum or a sufficient number of votes to approve a Proposal, but AllianzGI U.S. and Virtus nevertheless proceed to Closing. In the absence of Shareholder approval of the new investment advisory and subadvisory agreements for one or more Fund, there would be no automatic change to existing contractual arrangements; however, the Trustees (either acting of their own accord or responding to action taken or a proposal by AllianzGI U.S. and/or Virtus) may take such further action as they may deem to be in the best interests of the Shareholders of the relevant Funds.

The target closing date of the Transition is no later than December 31, 2020.

It is important to note that shareholders are NOT being asked to vote on the Transition itself. Rather, shareholders are being asked to vote on certain proposals that are being presented to them as a result of the Transition in the summary list above.

The shareholder vote is expected to occur at the joint special meetings to be held at the offices of Allianz Global Investors U.S. LLC (“AllianzGI U.S.”), at 1633 Broadway, between West 50th and West 51st Streets, 42nd Floor, New York, New York 10019, scheduled for 12:00 p.m., Eastern time, on October 28, 2020. Shareholders will also be able to attend the Meetings virtually via webcast.

In each case, each Fund’s Shareholders can effectively approve a Proposal by an affirmative vote of a majority of the outstanding shares of that Fund, which means the affirmative vote of 67% or more of voting shares where a 50% quorum has been reached.

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As discussed in detail in the proxy statement, investment management fees for the Funds will be maintained at current levels, and the Funds will have expense limitation arrangements in place that will contractually limit each Fund’s total operating expenses so that, on a net basis, such expenses will be equal to or lower than current net total expenses for at least two years following the Closing.

List of Funds to be subadvised by AllianzGI U.S. following the Transition to Virtus as the Investment Adviser:

Fund to be subadvised by the Value Equity investment team, following the Transition to Virtus as the Investment Adviser:

For any questions regarding the Proxy Statement, Shareholders should contact AST Fund Solutions, LLC at 1-877-361-7967. For questions related to the Funds, Shareholders should visit Funds’ website at us.allianzgi.com.

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AllianzGI Funds

Level I Answering Machine Script

Hello.

I am calling regarding your investment with the AllianzGI Funds.

The Special Meeting of Shareholders is scheduled to take place on October 28, 2020. All shareholders are being asked to consider and vote on important matters. As of today, your vote has not been registered.

Please contact us as soon as possible at 1-866-342-4883 Monday through Friday between the hours of 9:00am and 10:00pm Eastern Time.

Your vote is very important. Thank you and have a good day.

		AllianzGI Funds  Level I Call Guide (CONFIRM RECEIPT OF PROXY MATERIAL)

Good (morning, afternoon, evening), my name is (AGENT’S FULL NAME).

May I please speak with (SHAREHOLDER’S FULL NAME)?

(Re-Greet If Necessary)

I am calling on a recorded line regarding your current investment with AllianzGI Funds. I wanted to confirm that you have received the proxy material for the Special Meeting of Shareholders scheduled to take place on October 28, 2020.

Have you received the information?

(Pause for response)

Would you like to vote along with the Board’s recommendation?

(Pause For Response)

(Review Voting Options with Shareholder If Necessary)

If we identify any additional accounts you own with AllianzGI Funds before the meeting takes place, would you like to vote those accounts in the same manner as well?

(Pause For Response)

*Confirmation – I am recording your (Recap Voting Instructions).

For confirmation purposes:

Thank you. You will receive written confirmation of this vote within 3 to 5 business days. Upon receipt, please review and retain for your records. If you should have any questions, please call the toll free number listed on the confirmation. Mr. /Ms.                     , your vote is important and your time is greatly appreciated. Thank you and have a good (morning, afternoon, evening.)

ALLIANZGI CONVERTIBLE & INCOME FUND

ALLIANZGI CONVERTIBLE & INCOME FUND II

ALLIANZGI CONVERTIBLE & INCOME 2024 TARGET TERM FUND

ALLIANZGI DIVERSIFIED INCOME & CONVERTIBLE FUND

ALLIANZGI EQUITY & CONVERTIBLE INCOME FUND

ALLIANZGI DIVIDEND, INTEREST & PREMIUM STRATEGY FUND

Dear Valued Shareholder:

As a shareholder in one of the above mentioned Funds, we mailed time sensitive proxy voting material to you requesting your vote on important proposals relating to the operation of the Fund. According to our records, we have not received your proxy vote.

If the Fund does not receive sufficient votes to pass the proposals as detailed in the proxy materials previously mailed to you, we may occasionally call shareholders to encourage them to vote. In efforts to keep Fund costs down, we’d greatly appreciate your vote on these important proposals.

Voting is easy and fast. You can vote your proxy using one of the options below:

By casting your proxy vote now, you ensure your shares are represented and that we won’t contact you further relating to this issue.

Shareholders will vote on the proposals at the Special Meeting of Shareholders to be held on October 28, 2020. Detailed information about the Special Meeting of Shareholders and the proposals can be found in the proxy statement, or online at: https://vote.proxyonline.com/Allianz/docs/CEFSpecialMeeting.pdf

If you have any questions about these proposals, you may contact your financial advisor or AST Fund Solutions at (866) 342-4883.

Sincerely,

Thomas J. Fuccillo

President and Chief Executive Officer

R1-AGI-B1