Advent Convertible and Income Fund : AVK Semi-Annual Report April 2023

C E F

April 30, 2023

AVK | SEMIANNUAL REPORT

Advent Convertible and

Income Fund

DEAR SHAREHOLDER

The Fund's investment objective is to provide total return through a combination of capital appreciation and current income. Under normal market conditions, the Fund invests at least 80% of its managed assets in a diversified portfolio of convertible securities and non-convertible income securities. Under normal market conditions, the Fund will invest at least 30% of its managed assets in convertible securities and may invest up to 70% of its managed assets in non-convertible income securities. The Fund may invest without limitation in foreign securities. The Fund also uses a strategy of writing (selling) covered call options on up to 25% of the securities held in the portfolio, thus generating option writing premiums.

All Fund returns cited - whether based on net asset value ("NAV") or market price - assume the reinvestment of all distributions. For the Reporting Period, the Fund generated a total return based on market price of 6.41% and a total return based on NAV of 5.11%. As of April 30, 2023, the Fund's market price of $11.75 per share represented a discount of 4.70% to its NAV of $12.33 per share. As of October 31, 2022, the Fund's market price of $11.71 per share represented a discount of 5.56% to its NAV of $12.40 per share.

Past performance is not a guarantee of future results. All NAV returns include the deduction of management fees, operating expenses, and all other Fund expenses. The market price of the Fund's shares fluctuates from time to time, and may be higher or lower than the Fund's NAV per share.

During the Reporting Period, the Fund paid a monthly distribution of $0.1172 per share. The most recent distribution represents an annualized distribution rate of 11.97% based on the Fund's closing market price of $11.75 per share on April 30, 2023.

The Fund's distribution rate is not constant and the amount of distributions, when declared by the Fund's Board of Trustees, is subject to change. There is no guarantee of any future distribution or that the current returns and distribution rate will be maintained. Please see the Distributions to

AVK l ADVENT CONVERTIBLE AND INCOME FUND SEMIANNUAL REPORT l 3

Shareholders & Annualized Distribution Rate table on page 16, and Note 2(h) on page 47 for more information on distributions for the period.

We encourage shareholders to consider the opportunity to reinvest their distributions from the Fund through the Dividend Reinvestment Plan ("DRIP"), which is described in detail on page 85 of this report. When shares trade at a discount to NAV, the DRIP takes advantage of the discount by reinvesting the monthly dividend distribution in common shares of the Fund purchased in the market at a price less than NAV. Conversely, when the market price of the Fund's common shares is at a premium above NAV, the DRIP reinvests participants' dividends in newly issued common shares at the greater of NAV per share or 95% of the market price per share. The DRIP provides a cost-effective means to accumulate additional shares and enjoy the benefits of compounding returns over time. The DRIP effectively provides an income averaging technique which causes shareholders to accumulate a larger number of Fund shares when the market price is depressed than when the price is higher.

The Fund is managed by a team of experienced and seasoned professionals led by myself in my capacity as Chief Investment Officer (as well as President and Founder) of Advent Capital Management, LLC. To learn more about the Fund's performance and investment strategy over the Reporting Period, we encourage you to read the Economic and Market Overview and the Management's Discussion of Fund Performance, which begins on page 5.

We thank you for your investment in the Fund and we are honored that you have chosen the Advent Convertible and Income Fund as part of your investment portfolio. For the most up-to-date information regarding your investment, including related investment risks, please visit the Fund's website at guggenheiminvestments.com/avk.

Sincerely,

Tracy V. Maitland

President and Chief Executive Officer of the

Advent Convertible and Income Fund

May 31, 2023

4 l AVK l ADVENT CONVERTIBLE AND INCOME FUND SEMIANNUAL REPORT

The Reporting Period began with considerable economic uncertainty. The Federal Reserve (the "Fed") had raised the Federal Funds rate from 0% to 3%; inflation had shown next-to-no signs of decelerating, and corporate earnings were expected to decline on a combination of weakened demand, falling profit margins or both. Abroad, a difficult winter in Europe with gas supplies uncertain in the wake of the Russia-Ukraine conflict, and continued COVID restrictions in China as the nation conducted its Communist Party Congress, contributed to pessimistic forecasts for global growth.

However, as the Reporting Period progressed many of these fears were not realized. U.S. gross domestic product ("GDP") growth came in at a finalized 2.6% in the fourth calendar quarter of 2022 and a 1.1% preliminary annualized pace in the first calendar quarter of 2023. Although many sectors showed demand declines, services and consumer spending remained robust, and the housing market showed preliminary signs of recovery. Interest rates fell as inflation slowed down, partly helped by falling commodity prices; this led the Fed to slow down its monetary policy tightening. European GDP growth also stayed positive, as warm weather reduced gas needs and many industries shifted to other energy sources. China pivoted quickly to reopening the economy in the late fall, leading to a meaningful equity rally.

As of the end of the Reporting Period, recession fears have not ended, and the impact of regional bank stresses could lead to intermediate-term credit availability headwinds for sectors that depend on bank lending. The European Central Bank remains on strong hawkish policy, as inflation has not decelerated as in the U.S. That said, the chances of a soft landing have improved as Western economies have weathered the impact of the first batch of rate hikes well so far.

The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on market and other conditions, and should not be construed as a recommendation of any specific security or strategy.

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