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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number   811-21338

Registrant’s telephone number, including area code:  212-739-3371

Date of fiscal year:  February 29, 2012

Date of reporting period:  August 31, 2011

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e -1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-2001. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

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Semi-Annual Report

August 31, 2011

AGIC Convertible & Income Fund

AGIC Convertible & Income Fund II

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Hans W. Kertess

Chairman

Brian S. Shlissel

President & CEO

Dear Shareholder:

The U.S. economy encountered strong headwinds during the six-month fiscal period ended August 31, 2011. Unemployment and housing remained in the doldrums, political gridlock in Washington and the unprecedented downgrading of the federal government’s credit rating eroded confidence and Europe’s sovereign debt crisis spread. Consumers and corporations reacted to all of this with caution, opting to preserve cash and refrain from spending. An extraordinary period of volatility in the financial markets punctuated by a decline in stock prices and a rush to the perceived safe haven of U.S. Treasury bonds reflected the uncertainty and nervousness that many investors felt.

Six Months in Review through August 31, 2011

For the fiscal six-month period ended August 31, 2011:

In comparison, the BofA Merrill Lynch All Convertibles Index, an unmanaged index generally representative of the convertible securities market, declined 8.14%. The S&P 500 Index, an unmanaged index that is generally representative of the U.S. stock market, declined 7.23% and the Barclays Capital U.S. Credit Index increased 5.30%.

The downshifting economy was reflected by gross domestic product (“GDP”). After slowing throughout 2010, GDP the value of goods and services produced in the country, the broadest measure of economic activity and the principal indicator of economic performance expanded at an annualized rate of just 0.4% in the first quarter of 2011. GDP accelerated somewhat, to 1.0% between April and June 2011. Key economic indicators pointed to a similarly feeble growth during July and August, the final two months of the reporting period.

The wobbly economy and political uncertainty proved to be a boon for U.S. Treasury bonds. As the fiscal period drew to a close, the yield on the 10-year

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bond plunged below 2.0%, the lowest level in half-a-century. The drop in yields in August alone was 0.59%.

The Federal Reserve (the “Fed”), responding to the slowdown, revealed that it would keep interest rates near zero until “at least mid-2013.” The Fed also hinted that it could take additional measures to stimulate the economy, though no details were provided.

Positioned to Face Today’s Challenges

The challenges of the last six months have been substantial. Given the political and economic uncertainty that exists in the United States and abroad, it is not unreasonable to suggest that the road ahead could be difficult. It is worth noting, however, that corporate America is in far better shape than it was a few years ago, when the economy fell into recession. Non-financial firms in

the Standard & Poor’s 500 are holding $1.12 trillion in cash and short-term investments, up 59% from the dark days of 2008. Should economic conditions deteriorate further, this substantial cushion will help. Our outlook is cautious — but as always, we urge investors to adopt a long-term view and remain patient.

For specific information on the Funds and their performance, please refer to the following pages. If you have any questions regarding the information provided, we encourage you to contact your financial advisor or call the Funds’ shareholder servicing agent at (800) 254-5197. In addition, a wide range of information and resources is available on our website, www.allianzinvestors.com/closedendfunds.

Together with Allianz Global Investors Fund Management LLC, the Funds’ investment manager, and Allianz Global Investors Capital LLC, the Funds’ sub-adviser, we thank you for investing with us.

We remain dedicated to serving your investment needs.

Sincerely,

Receive this report electronically and eliminate paper mailings. To enroll, go to www.allianzinvestors.com/ edelivery.

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AGIC Convertible & Income Funds Fund Insights

August 31, 2011 (unaudited)

Performance Overview

For the six-month period ended August 31, 2011, AGIC Convertible & Income Fund and AGIC Convertible & Income Fund II returned -9.54% and -9.66% on net asset value (“NAV”) and -13.91% and -11.84%, respectively, on market price.

Market Environment — Convertibles

The positive trend in the convertible market reversed during the reporting period. The BofA Merrill Lynch All Convertibles Index fell 8.14%.

During the reporting period, convertibles retreated as equities declined due to reports of slowing global economic growth and macro-related factors including gridlock in Washington, S&P's downgrade of the U.S. and sovereign debt risk throughout Europe. In addition, credit spread widening hindered returns. On a positive note, most corporate profits for the second quarter exceeded expectations.

Within the convertible market, sector performance was mostly negative for the period with utilities as the only positive performer. Defensive sectors such as utilities, health care and telecommunications were the best performers during the reporting period as investors rotated into less volatile names. Economically-sensitive sectors such as materials, consumer discretionary, industrials and transportation underperformed.

New convertible issuance slowed as the market corrected and fell sharply in August 2011 with no new deals pricing during the month. Over the reporting period, fifty-one new deals priced for $16.7 billion in total proceeds. Many companies are still accessing the corporate debt markets instead of the convertible markets because of the absolute level of interest rates. Redemptions continued to outpace new issuance in the convertible market.

In the convertibles sleeve of the Funds’ portfolios, utilities, telecommunications, media and healthcare issues posted the strongest returns as investors gravitated to the counter-cyclical sectors. The health care sector benefited from owning drug manufacturing companies, which were higher during the period on better-than-expected quarterly profits. On the downside, economically-sensitive sectors such as energy, consumer discretionary, industrials and transportation underperformed. Energy issuers were lower as weaker-than-expected macro data drove down energy prices. Industrial issuers underperformed despite impressive operating profits and solid end market demand.

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Market Environment — High Yield

The BofA Merrill Lynch High Yield Master II Index declined 1.45% for the reporting period. The high yield market outperformed most stock averages for the six-month period ended August 31, 2011.

The high yield market’s resiliency was tested in the reporting period. Macro-events, including many carried over from earlier in the reporting period, the disaster in Japan, sovereign debt issues in Europe and weaker economic statistical reports in the U.S., weighed on investor sentiment. Company-specific news affected certain issuers, but for the majority of the market, the macro shifts and the resulting weakness in the equity markets triggered managers and trading desks to de-risk (i.e. sell).

In the high yield market, the majority of industries produced a negative return for the reporting period. The strongest performing industries included food & drug retail, restaurants, railroad and hotels. Publishing/printing, broadcasting, building materials and insurance trailed the universe by the greatest margin.

Higher risk issuers underperformed lower risk issuers (as represented by the rating agencies) during the six-month period. The BofA ML CCC-rated index underperformed the BB-rated sleeve by over 700 basis points in the period. In addition to the flight-to-quality trade witnessed in periods of market weakness, U.S. Treasuries’ positive performance had a strong influence on the narrower average spread and the higher-correlated BB sleeve.

New high yield issuance was strong in the first half of the period but slowed over the last three months of the semi-annual period due to market volatility and an end of summer slowdown. Year-to-date through August 31, 2011, 429 deals priced, raising $201 billion in proceeds. Over the last six months, the majority of proceeds went towards refinancing.

In the high yield sleeve of the portfolios, the automotive & auto parts, apparel/textiles, and food & drug retail industries recorded the strongest returns. Automobile and automobile part companies were higher as auto sales exceeded expectations and production schedules were increased. Conversely, paper, homebuilders/real estate and utilities issuers trailed by the greatest margin. A paper company was lower due to industry pricing disappointments as well as a contagion effect from a failing competitor, while a homebuilder was lower due to a continuation of the lagged rebound in the industry as well as a softer than expected first quarter report.

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AGIC Convertible & Income Funds Fund Insights

August 31, 2011 (unaudited) (continued)

Outlook

The outlook for the high yield, convertible and equity markets is unchanged and constructive. The global economy is going through a soft patch, but we expect improvement in the fourth quarter of 2011. The supply chain disruptions from the Japan disaster seem to be abating, and while European sovereign debt issues will continue to make headlines, corporate profits remain resilient. In addition, U.S. corporate cash levels are high, debt levels have been reduced and maturities have been extended.

The market has dealt with some important macro issues, in addition to softer recent economic statistics and a weaker equity market. The recent lack of clarity, as well as the abundant negative headlines in the media, have made investors short-term focused and pessimistic. Little focus is on the strength of corporate profitability. The strength of the credit quality of issuers should continue to drive demand for the asset class.

With respect to the high yield market, spreads ended August at approximately 730 basis points over comparable Treasuries. The historical average spread is well inside of this level specifically at the current point in the credit cycle. Furthermore, the average leverage ratio, the rating upgrade-to-downgrade ratio and default rate (both current and forecast) are all at or superior to all-time historical levels from a credit strength perspective.

For the balance of 2011, we expect companies to use the high cash levels on their balance sheets and future free cash flow to boost shareholder value. Share buybacks, increased dividends and merger and acquisition activity are possible uses of excess cash. We believe these factors will benefit equity and convertible investors.

While credit spread widening occurred in August, we believe overall corporate credit quality is healthy for a majority of issuers. This should provide downside support if the equity markets continue to deteriorate. Convertible total returns should be supported by their fixed income value and benefit from a more stable equity market.

Our disciplined approach of focusing on companies that are exceeding expectations and improving their credit statistics should be rewarded as those companies differentiate themselves from their peer group. In this environment, we believe companies that have reasonable earnings visibility should command premium valuations relative to other companies.

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We continue to build the Funds’ portfolios one company at a time, by identifying those issuers that are opportunistically capitalizing on change. In addition, we are maintaining our discipline of seeking to identify the best total return candidates with the optimal risk/reward profile.

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AGIC Convertible & Income Fund Fund Performance & Statistics

August 31, 2011 (unaudited)

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AGIC Convertible & Income Fund II Fund Performance & Statistics

August 31, 2011 (unaudited)

(1) Past performance is no guarantee of future results. Total return is calculated by determining the percentage change in NAV or market price (as applicable) in the specified period. The calculation assumes that all income dividends and capital gain distributions, if any, have been reinvested. Total return does not reflect broker commissions or sales charges in connection with the purchase or sale of Fund shares. Total return for a period of less than one year is not annualized. Total return for a period of more than one year represents the average annual total return.

Performance at market price will differ from results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the Funds, market conditions, supply and demand for each Fund’s shares, or changes in the Funds’ dividends.

An investment in the Funds involves risk, including the loss of principal. Total return, market price, market price yield and NAV will fluctuate with changes in market conditions. This data is provided for information purposes only and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one time public offering and once issued, shares of closed-end funds are traded in the open market through a stock exchange. NAV is equal to total assets attributable to common shareholders less total liabilities divided by the number of common shares outstanding. Holdings are subject to change daily.

(2) Market Price Yield is determined by dividing the annualized current monthly per common share dividend (comprised of net investment income) payable to common shareholders by the market price per common share at August 31, 2011.

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AGIC Convertible & Income Fund Schedule of Investments

August 31, 2011 (unaudited)

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