abrdn Healthcare Opportunities Fund

SCHEDULE OF INVESTMENTS

December 31, 2023

(Unaudited)

 

   Shares   Value 
Convertible Preferreds (Restricted) (a)(b) - 0.8%        
Biotechnology – 0.4%          
Abcuro, Inc. Series B   601,124   $3,299,991 
           
Health Care Equipment & Supplies – 0.0%          
IO Light Holdings, Inc. Series A2   189,858    204,249 
           
Pharmaceuticals – 0.4%          
Endeavor Biomedicines, Inc. Series B, 8.00%   742,138    3,499,997 
Total Convertible Preferreds (Cost $7,432,719)        7,004,237 

 

   Principal
Amount
     
Non-Convertible Notes - 19.6%        
Biotechnology – 2.9%          
AbbVie, Inc., 3.20% due 05/14/26  $3,245,000    3,144,994 
AbbVie, Inc., 4.25% due 11/14/28   5,303,000    5,274,921 
AbbVie, Inc., 4.45% due 05/14/46   3,080,000    2,827,830 
Amgen, Inc., 3.20% due 11/02/27   2,200,000    2,101,619 
Amgen, Inc., 2.00% due 01/15/32   2,795,000    2,291,788 
Gilead Sciences, Inc., 2.95% due 03/01/27   10,000,000    9,535,356 
         25,176,508 
Health Care Equipment & Supplies – 2.7%          
Abbott Laboratories, 4.75% due 11/30/36   10,498,000    10,752,786 
Becton, Dickinson and Co., 3.70% due 06/06/27   2,413,000    2,338,308 
DH Europe Finance II Sarl, 3.25% due 11/15/39   1,760,000    1,459,675 
Stryker Corp., 3.65% due 03/07/28   3,500,000    3,385,013 
Zimmer Biomet Holdings, Inc., 4.25% due 08/15/35   6,000,000    5,418,840 
         23,354,622 
Health Care Providers & Services – 8.0%          
CVS Health Corp., 4.30% due 03/25/28   789,000    775,625 
CVS Health Corp., 1.88% due 02/28/31   4,400,000    3,621,051 
CVS Health Corp., 4.78% due 03/25/38   2,100,000    1,989,503 
CVS Health Corp., 5.05% due 03/25/48   3,700,000    3,460,640 
Elevance Health, Inc., 3.50% due 08/15/24   10,500,000    10,359,696 
Elevance Health, Inc., 4.10% due 03/01/28   2,975,000    2,931,379 
Elevance Health, Inc., 2.55% due 03/15/31   5,800,000    5,035,969 
Elevance Health, Inc., 4.65% due 08/15/44   2,325,000    2,150,212 
The Cigna Group, 3.50% due 06/15/24   2,100,000    2,079,251 
The Cigna Group, 4.38% due 10/15/28   1,504,000    1,491,884 
The Cigna Group, 2.38% due 03/15/31   5,800,000    4,957,234 
The Cigna Group, 6.13% due 11/15/41   8,250,000    9,025,620 
UnitedHealth Group, Inc., 3.85% due 06/15/28   1,460,000    1,427,586 
UnitedHealth Group, Inc., 3.88% due 12/15/28   4,970,000    4,864,624 
UnitedHealth Group, Inc., 4.20% due 05/15/32   10,940,000    10,705,076 
UnitedHealth Group, Inc., 4.50% due 04/15/33   5,800,000    5,763,157 
         70,638,507 
Healthcare Services – 0.2%          
Laboratory Corporation of America Holdings, 3.60% due 02/01/25   2,100,000    2,064,038 

 

 

The accompanying notes are an integral part of this Schedule of Investments.

 

 

 

 

abrdn Healthcare Opportunities Fund

SCHEDULE OF INVESTMENTS

December 31, 2023

(Unaudited, continued)

 

   Principal
Amount
   Value 
Life Sciences Tools & Services – 0.8%          
Thermo Fisher Scientific, Inc., 5.40% due 08/10/43  $6,500,000   $6,874,804 
           
Pharmaceuticals – 5.0%          
AstraZeneca plc, 6.45% due 09/15/37 (c)    4,750,000    5,551,259 
Bristol-Myers Squibb Co., 3.20% due 06/15/26   7,500,000    7,277,092 
Bristol-Myers Squibb Co., 3.40% due 07/26/29   2,100,000    1,991,772 
IQVIA, Inc., 5.00% due 05/15/27(d)   1,290,000    1,266,064 
Johnson & Johnson, 2.90% due 01/15/28   2,200,000    2,105,009 
Johnson & Johnson, 3.70% due 03/01/46   10,130,000    8,862,577 
Merck & Co., Inc., 2.75% due 02/10/25   2,100,000    2,053,336 
Merck & Co., Inc., 3.40% due 03/07/29   4,000,000    3,842,461 
Pfizer, Inc., 3.45% due 03/15/29   8,100,000    7,804,410 
Pfizer, Inc., 4.00% due 12/15/36   3,200,000    3,020,153 
         43,774,133 
Total Non-Convertible Notes (Cost $176,661,661)        171,882,612 

 

   Shares     
Common Stocks - 101.5%        
Biotechnology – 16.9%          
AbbVie, Inc. (e)   321,003    49,745,835 
Amgen, Inc.   65,086    18,746,070 
argenx SE ADR (b)   12,085    4,597,496 
Biogen, Inc. (b)   43,552    11,269,951 
Fusion Pharmaceuticals, Inc. (b)(c)   14,319    137,606 
Fusion Pharmaceuticals, Inc. (Restricted) (a)(b)(c)   7,160    61,927 
Galera Therapeutics, Inc. (b)   314,430    45,718 
Gilead Sciences, Inc. (e)   214,756    17,397,384 
I-Mab ADR (b)   43,738    83,102 
Incyte Corp. (b)(e)   30,891    1,939,646 
Moderna, Inc. (b)   38,588    3,837,577 
Rallybio Corp. (b)   594,616    1,421,132 
Regeneron Pharmaceuticals, Inc. (b)   24,293    21,336,299 
Sarepta Therapeutics, Inc. (b)   2,700    260,361 
Vertex Pharmaceuticals, Inc. (b)(e)   41,552    16,907,093 
         147,787,197 
Equity Real Estate Investment Trusts – 3.4%          
Diversified Healthcare Trust REIT   293,879    1,099,107 
Global Medical REIT, Inc.   31,668    351,515 
Healthcare Realty Trust, Inc.   25,119    432,800 
Healthpeak Properties, Inc.   66,791    1,322,462 
LTC Properties, Inc.   135,390    4,348,727 
Medical Properties Trust, Inc.   266,557    1,308,795 
National Health Investors, Inc.   5,596    312,537 
Omega Healthcare Investors, Inc.   235,358    7,216,076 
Physicians Realty Trust   582,346    7,751,025 
Sabra Health Care REIT, Inc.   419,879    5,991,673 

 

 

The accompanying notes are an integral part of this Schedule of Investments.

 

 

 

 

abrdn Healthcare Opportunities Fund

SCHEDULE OF INVESTMENTS

December 31, 2023

(Unaudited, continued)

 

   Shares   Value 
Equity Real Estate Investment Trusts (continued)          
Universal Health Realty Income Trust   3,075   $132,994 
         30,267,711 
Health Care Equipment & Supplies – 14.8%          
Abbott Laboratories (e)   261,502    28,783,525 
Baxter International, Inc. (e)   198,244    7,664,113 
Becton, Dickinson and Co.   16,207    3,951,753 
DexCom, Inc. (b)(e)   64,154    7,960,870 
Edwards Lifesciences Corp. (b)(e)   175,447    13,377,834 
Guardant Health, Inc. (b)   74,536    2,016,199 
IDEXX Laboratories, Inc. (b)(e)   18,387    10,205,704 
Inspire Medical Systems, Inc. (b)   24,473    4,978,542 
Insulet Corp. (b)(e)   21,981    4,769,437 
LivaNova plc (b)   108,480    5,612,755 
Medtronic plc (e)   212,554    17,510,199 
STERIS plc   21,172    4,654,664 
Stryker Corp.   42,788    12,813,295 
Zimmer Biomet Holdings, Inc. (e)   43,370    5,278,129 
         129,577,019 
Health Care Providers & Services – 19.0%          
Acadia Healthcare Co., Inc. (b)   74,939    5,827,256 
Charles River Laboratories International, Inc. (b)(e)   30,387    7,183,487 
Community Health Systems, Inc. (b)   79,635    249,257 
CVS Health Corp.   93,621    7,392,314 
Elevance Health, Inc.   56,680    26,728,021 
HCA Healthcare, Inc.   27,081    7,330,285 
Humana, Inc. (e)   41,447    18,974,851 
Molina Healthcare, Inc. (b)(e)   26,312    9,506,789 
R1 RCM, Inc. (b)   232,554    2,458,096 
Tenet Healthcare Corp. (b)(e)   105,224    7,951,778 
The Cigna Group   7,700    2,305,765 
UnitedHealth Group, Inc. (e)   134,051    70,573,830 
         166,481,729 
Health Care Technology – 0.4%          
Veradigm, Inc. (b)   338,217    3,547,896 
           
Life Sciences Tools & Services – 7.1%          
Agilent Technologies, Inc. (e)   49,775    6,920,218 
Avantor, Inc. (b)(e)   372,520    8,504,632 
Illumina, Inc. (b)(e)   42,604    5,932,181 
Thermo Fisher Scientific, Inc. (e)   73,651    39,093,214 
West Pharmaceutical Services, Inc.   6,192    2,180,327 
         62,630,572 
Medical Devices and Diagnostics – 7.9%          
Boston Scientific Corp. (b)(e)   397,289    22,967,277 
Danaher Corp. (e)   112,281    25,975,086 

 

 

The accompanying notes are an integral part of this Schedule of Investments.

 

 

 

 

abrdn Healthcare Opportunities Fund

SCHEDULE OF INVESTMENTS

December 31, 2023

(Unaudited, continued)

 

   Shares   Value 
Medical Devices and Diagnostics (continued)          
Intuitive Surgical, Inc. (b)   48,321   $16,301,573 
ResMed, Inc. (e)   24,600    4,231,692 
         69,475,628 
Pharmaceuticals – 32.0%          
AstraZeneca plc ADR   49,740    3,349,989 
Bristol-Myers Squibb Co.   276,824    14,203,840 
Catalent, Inc. (b)(e)   48,600    2,183,598 
Eli Lilly & Co. (e)   136,846    79,770,270 
IQVIA Holdings, Inc. (b)   13,712    3,172,683 
Johnson & Johnson (e)   402,883    63,147,881 
McKesson Corp. (e)   31,638    14,647,761 
Merck & Co., Inc.   504,200    54,967,884 
Oculis Holding AG (b)(c)   591,759    6,509,349 
Perrigo Co. plc (c)   28,292    910,437 
Pfizer, Inc.   715,768    20,606,961 
Teva Pharmaceutical Industries Ltd. ADR (b)   77,704    811,230 
Zoetis, Inc.   80,982    15,983,417 
         280,265,300 
Total Common Stocks (Cost $775,769,367)        890,033,052 
           
Short-Term Investments - 4.5%        
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.32% (f)   39,639,469    39,639,469 
Total Short-Term Investments (Cost $39,639,469)        39,639,469 
Total Investments Before Milestone Interests – 126.4% (Cost $999,503,216)        1,108,559,370 

 

     INTEREST     
Milestone Interest (Restricted)(a)(b) – 0.0%          
Biotechnology – 0.0%          
Rainier Therapeutics Milestone Interest   1    0 
Total Milestone Interests (Cost $277,782)        0 

 

    Number of Contracts
(100 Shares each)/
Notional Amount ($)
 
       
Option Contracts Written- (0.1)%                
Call Option Contracts Written - (0.1)%                
Abbott Laboratories Jan24 110 Call     302/(3,322,000)       (49,528 )
Abbvie Inc Jan24 157.5 Call     319/(5,024,250)       (36,366 )
Agilent Technologies Inc Jan24 145 Call     48/(696,000)       (5,040 )

 

 

The accompanying notes are an integral part of this Schedule of Investments.

 

 

 

 

abrdn Healthcare Opportunities Fund

SCHEDULE OF INVESTMENTS

December 31, 2023

(Unaudited, continued)

 

    Number of Contracts
(100 Shares each)/
Notional Amount ($)
  Value  
Call Option Contracts Written (continued)            
Avantor, Inc. Jan24 25 Call   536/(1,340,000)   $ (8,040 )
Baxter International, Inc. Jan24 41 Call   95/(389,500)     (1,995 )
Boston Scientific Corp. Jan24 57.5 Call   578/(3,323,500)     (73,406 )
Catalent, Inc. Jan24 45 Call   46/(207,000)     (8,464 )
Charles River Laboratories International, Inc. Jan24 240 Call   29/(696,000)     (13,195 )
Danaher Corp. Jan24 235 Call   166/(3,901,000)     (70,550 )
Dexcom, Inc. Jan24 130 Call   92/(1,196,000)     (23,000 )
Edwards Lifesciences Corp. Jan24 80 Call   260/(2,080,000)     (14,300 )
Eli Lilly & Co. Jan24 610 Call   186/(11,346,000)     (89,280 )
Gilead Sciences, Inc. Jan24 82.5 Call   313/(2,582,250)     (27,544 )
Humana, Inc. Jan24 475 Call   20/(950,000)     (8,000 )
Idexx Laboratories, Inc. Jan24 560 Call   27/(1,512,000)     (31,050 )
Illumina, Inc. Jan24 140 Call   41/(574,000)     (25,010 )
Incyte Corp. Jan24 65 Call   45/(292,500)     (3,510 )
Insulet Corp. Jan24 220 Call   32/(704,000)     (25,280 )
Johnson & Johnson Jan24 160 Call   586/(9,376,000)     (53,912 )
Mckesson Corp. Jan24 460 Call   31/(1,426,000)     (31,930 )
Medtronic Plc Jan24 85 Call   309/(2,626,500)     (12,360 )
Molina Healthcare, Inc. Jan24 380 Call   25/(950,000)     (4,150 )
ResMed, Inc. Jan24 180 Call   36/(648,000)     (7,560 )
Tenet Healthcare Corp. Jan24 80 Call   99/(792,000)     (9,207 )
Thermo Fisher Scientific, Inc. Jan24 540 Call   73/(3,942,000)     (61,320 )
Unitedhealth Group, Inc. Jan24 550 Call   108/(5,940,000)     (30,564 )
Vertex Pharmaceuticals, Inc. Jan24 425 Call   40/(1,700,000)     (6,000 )
Zimmer Biomet Holdings, Inc. Jan24 125 Call   42/(525,000)     (5,460 )
Total Call Option Contracts Written (Premiums received $(805,029))         (736,021 )
Total Investments- 126.3% (Cost $998,975,969)         1,107,823,349  
Other Liabilities in Excess Of Assets- (26.3)%         (230,954,738 )
Net Assets - 100%       $ 876,868,611  

 

The percentage shown for each investment category in the Schedule of Investments is based on net assets.

 

(a)Security fair valued using significant unobservable inputs. See Investment Valuation and Fair Value Measurements.
(b)Non-income producing security.
(c)Foreign security.
(d)Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(e)A portion of security is pledged as collateral for call options written.
(f)Registered investment company advised by State Street Global Advisors. The rate shown is the annualized seven-day yield as of December 31, 2023

ADR American Depository Receipt  

 

 

The accompanying notes are an integral part of this Schedule of Investments.

 

 

 

 

abrdn Healthcare Opportunities Fund

December 31, 2023

(Unaudited)

 

1. Summary of Significant Accounting Policies

 

a. Security Valuation:

 

The Fund values its securities at current market value or fair value, consistent with regulatory requirements. "Fair value" is defined in the Fund's Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to transact at the measurement date. Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Board of Trustees (the “Board”) designated abrdn Inc. (the “Investment Adviser” or the “Adviser”) as the valuation designee ("Valuation Designee") for the Fund to perform the fair value determinations relating to Fund investments for which market quotations are not readily available. With respect to the Fund's investments in securities of early and /or later stage financing of a privately held companies ("Venture Capital Securities"), the Private Venture Valuation Committee ("PV Valuation Committee"), which is a Committee of the Board, performs fair value determinations for the Fund.

 

Long-term debt and other fixed-income securities are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service provider. If there are no current day bids, the security is valued at the previously applied bid. Pricing services generally price debt securities assuming orderly transactions of an institutional “round lot” size and the strategies employed by the Valuation Designee generally trade in round lot sizes. In certain circumstances, some trades may occur in smaller “odd lot” sizes which may be effected at lower, or higher, prices than institutional round lot trades. Short-term debt securities (such as commercial paper and U.S. treasury bills) having a remaining maturity of 60 days or less are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service, or on the basis of amortized cost, if it represents the best approximation of fair value. Debt and other fixed-income securities are generally determined to be Level 2 investments.

 

Equity securities that are traded on an exchange are valued at the last quoted sale price or the official close price on the principal exchange on which the security is traded at the “Valuation Time” subject to application, when appropriate, of the valuation factors described in the paragraph below. Under normal circumstances, the Valuation Time is as of the close of regular trading on the New York Stock Exchange ("NYSE") (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask price quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price.

 

Convertible preferred shares, warrants or convertible note interests in Venture Capital Securities, milestone interests, and other restricted securities are typically valued in good faith, based upon the recommendations made by the PV Valuation Committee or the Valuation Designee pursuant to fair valuation policies and procedures approved by the Board.

 

Derivatives are valued at fair value. Exchange traded derivatives are generally Level 1 investments and over-the-counter and centrally cleared derivatives are generally Level 2 investments. Forward foreign currency contracts are generally valued based on the bid price of the forward rates and the current spot rate. Forward exchange rate quotations are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12-month periods. An interpolated valuation is derived based on the actual settlement dates of the forward contracts held. Exchange-traded options are valued at the last quoted sales price. In the absence of a sales price, options are valued at the mean of the bid/ask price quoted at the close on the exchange on which the options trade. When market quotations or exchange rates are not readily available, or if the Adviser concludes that such market quotations do not accurately reflect fair value, the fair value of a Fund’s assets are determined in good faith in accordance with the Valuation Procedures.

 

Foreign equity securities that are traded on foreign exchanges that close prior to the Valuation Time are valued by applying valuation factors to the last sale price or the mean price as noted above. Valuation factors are provided by an independent pricing service provider. These valuation factors are used when pricing the Fund's portfolio holdings to estimate market movements between the time foreign markets close and the time the Fund values such foreign securities. These valuation factors are based on inputs such as depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When prices with the application of valuation factors are utilized, the value assigned to the foreign securities may not be the same as quoted or published prices of the securities on their primary markets. A security that applies a valuation factor is determined to be a Level 2 investment because the exchange-traded price has been adjusted. Valuation factors are not utilized if the independent pricing service provider is unable to provide a valuation factor or if the valuation factor falls below a predetermined threshold; in such case, the security is determined to be a Level 1 investment.

 

 

 

 

abrdn Healthcare Opportunities Fund

December 31, 2023

(Unaudited, continued)

 

In the event that a security’s, other than a Venture Capital Security, market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closes before the Valuation Time), the security is valued at fair value as determined by the Valuation Designee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. A security that has been fair valued by the Valuation Designee may be classified as Level 2 or Level 3 depending on the nature of the inputs.

 

Venture Capital Securities are valued based on a consideration of relevant factors, including both observable and unobservable inputs. Observable and unobservable inputs considered may include (i) the existence of any contractual restrictions on the disposition of securities; (ii) information obtained from the company, which may include an analysis of the company's financial statements, products, intended markets or technologies; (iii) the price of the same or similar security negotiated at arm's length in an issuer's completed subsequent round of financing; (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies; or (v) a probability and time value adjusted analysis of contractual terms. Where available and appropriate, multiple valuation methodologies are applied to confirm fair value. Significant unobservable inputs are often used in the fair value determination. A significant change in any of these inputs may result in a significant change in the fair value measurement. Additionally, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different from the valuations used at the date of these financial statements.

 

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level, measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3, the lowest level, measurements to valuations based upon unobservable inputs that are significant to the valuation. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement Open-end mutual funds are valued at the respective net asset value (“NAV”) as reported by such company. The prospectuses for the registered open-end management investment companies in which the Fund invests explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time (as defined below). A security using any of these pricing methodologies is determined to be a Level 1 investment.

 

The three-level hierarchy of inputs is summarized below:

 

Level 1 - quoted prices in active markets for identical investments;

 

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or

 

Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). Investments that are included in this category are Venture Capital Securities investments.

 

Level 3 investments are valued using significant unobservable inputs. The Fund may also use a discounted cash flow based valuation approach in which the anticipated future cash flows of the investment are used to estimate the current fair value. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

 

 

 


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