N-CSR 1 tm2527059d11_ncsr.htm N-CSR

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:		811-04889

Exact name of registrant as specified in charter:		abrdn Healthcare Investors

Address of principal executive offices:		1900 Market Street, Suite 200
		Philadelphia, PA 19103

Name and address of agent for service:		Sharon Ferrari
		abrdn Inc.
		1900 Market Street Suite 200
		Philadelphia, PA 19103

Registrant’s telephone number, including area code:		1-800-522-5465

Date of fiscal year end:		September 30

Date of reporting period:		September 30, 2025

Item 1. Reports to Stockholders.

(a)

abrdn Healthcare Investors (HQH)

Annual Report

September 30, 2025

aberdeeninvestments.com

Managed Distribution Policy (unaudited)

The Board of Trustees (the "Board") of the abrdn Healthcare Investors (the “Fund”) has authorized a managed distribution policy (“MDP”) of paying quarterly distributions at an annual rate, set once a year, that is a percentage of the rolling average of the Fund’s net asset values over the preceding three month period ending on the last day of the month immediately preceding the distribution’s declaration date (the "Distribution Policy"). The Distribution Policy is subject to regular review by the Board. The Distribution Policy seeks to provide investors with a distribution out of current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital.

With each distribution, the Fund will issue a notice to shareholders and an accompanying press release which will provide detailed information regarding the estimated amount and composition of the distribution and other information required by the Fund’s MDP exemptive order. The Board may amend or terminate the MDP at any time without prior notice to shareholders; however, at this time, there are no reasonably foreseeable circumstances that might cause the termination of the MDP. You should not draw any conclusions about the Fund’s investment performance from the amount of distributions or from the terms of the Fund’s MDP.

Distribution Disclosure Classification (unaudited)

The Fund’s policy is to provide investors with a stable distribution rate. Each quarterly distribution will be paid out of current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital.

The Fund is subject to U.S. corporate, tax and securities laws. Under U.S. tax rules, the amount applicable to the Fund and character of distributable income for each fiscal period depends on the actual exchange rates during the entire year between the U.S. Dollar and the currencies in which the Fund's assets are denominated and on the aggregate gains and losses realized by the Fund during the entire year.

Therefore, the exact amount of distributable income for each fiscal year can only be determined as of the end of the Fund’s fiscal year, September 30. Under Section 19 of the Investment Company Act of

1940, as amended (the “1940 Act”), the Fund is required to indicate the sources of certain distributions to shareholders. The estimated distribution composition may vary from quarter to quarter because it may be materially impacted by future income, expenses and realized gains and losses on securities and fluctuations in the value of the currencies in which the Fund assets are denominated.

The distributions for the fiscal year ended September 30, 2025 consisted of 95% net investment income, 1% net realized gains and 4% return of capital.

In January 2026, a Form 1099-DIV will be sent to shareholders, which will state the final amount and composition of distributions and provide information with respect to their appropriate tax treatment for the 2025 calendar year.

abrdn Healthcare Investors

Letter to Shareholders (unaudited)

Dear Shareholder,

We present the Annual Report, which covers the activities of abrdn Healthcare Investors (the “Fund”), for the fiscal year ended September 30, 2025. The Fund’s investment objective is to seek long-term capital appreciation by investing primarily in equity and related securities (including securities subject to legal or contractual restrictions on resale) of U.S. and foreign companies principally engaged in the healthcare industries ("Healthcare Companies"). In addition, the Fund seeks to provide regular distribution of realized capital gains.

Total Investment Return¹

For the fiscal year ended September 30, 2025, the total return to shareholders of the Fund based on the net asset value (“NAV”) and market price of the Fund, respectively, compared to the Fund’s benchmark, is as follows:

NAV²^,³	10.90%
Market Price²	13.47%
80% Nasdaq Biotechnology Index, 20% S&P Composite 1500 Health Care Index⁴	1.05%

For more information about Fund performance, please visit the Fund on the web at www.aberdeenhqh.com. Here, you can view quarterly commentary on the Fund's performance, monthly fact sheets, distribution and performance information, and other Fund literature.

NAV, Market Price and Premium(+)/Discount(-)

The below table represents a comparison between the current fiscal year end and the prior fiscal year end of the Fund's market price to NAV and associated Premium(+) and Discount(-).


	NAV	Closing Market Price	Premium(+)/ Discount(-)
9/30/2025	$19.70	$18.46	-6.29%
9/30/2024	$20.32	$18.62	-8.37%

During the fiscal year ended September 30, 2025, the Fund’s NAV was within a range of $15.74 to $20.69 and the Fund’s market price traded within a range of $14.14 to $18.73. During the fiscal year ended September 30, 2025, the Fund’s shares traded within a range of a premium(+)/discount(-) of -12.77% to -5.01%.

Aberdeen Name Change

On March 4, 2025, abrdn plc, the parent company of the Fund's adviser, announced that it would change its name, and from that date, will use `Aberdeen' as the principal trading identity for its Investments business. On March 12, 2025, abrdn plc completed the steps to legally change its name to Aberdeen Group plc. Aberdeen has retained `abrdn' as an operational abbreviation across its subsidiary legal entities (including the Fund's adviser, fund names and descriptors).

Managed Distribution Policy

The Fund has a managed distribution policy of paying quarterly distributions at an annual rate, set by the Board of Trustees (the "Board") once a year, as a percentage of the rolling average of the Fund’s NAV over the preceding three month period ending on the last day of the month immediately preceding the distribution’s declaration date. On March 11, 2025, the Board determined the rolling distribution rate to be 12% for the 12-month period commencing with the distribution payable in June 2025. This policy will be subject to regular review by the Board. The distributions will be made from current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital, which is a nontaxable return of capital.

On November 11, 2025, the Fund announced that it will pay on January 12, 2026, a stock distribution of US $0.57 per share to all shareholders of record as of November 21, 2025. This stock distribution will automatically be paid in newly issued shares of the Fund unless otherwise instructed by the shareholder. Shares of common stock will be issued at the lower of the NAV per share or the market price per share with a floor for the NAV of not less than 95% of the market price. Fractional shares will generally be settled in cash, except for registered shareholders with book entry accounts at Computershare Investor Services who will have whole and fractional shares added to their account.

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Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance quoted. NAV return data include investment management fees, custodial charges and administrative fees (such as Trustee and legal fees) and assumes the reinvestment of all distributions.

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²	Assuming the reinvestment of dividends and distributions.

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³	The Fund’s total return is based on the reported NAV for each financial reporting period end and may differ from what is reported on the Financial Highlights due to financial statement rounding or adjustments.

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⁴

The NASDAQ Biotechnology Index is an unmanaged stock market index made up of securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as either the Biotechnology or the Pharmaceutical industry. The S&P Composite 1500^® Health Care Index is an unmanaged index that comprises those companies included in the S&P Composite 1500 that are classified as members of the GICS^® Health Care sector. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.

abrdn Healthcare Investors

Letter to Shareholders (unaudited) (continued)

Shareholders may request to be paid their quarterly distributions in cash instead of shares of common stock by providing advance notice to the bank, brokerage or nominee who holds their shares if the shares are in “street name” or by filling out in advance an election card received from Computershare Investor Services if the shares are in registered form.

The Fund is covered under exemptive relief received by the Fund’s investment manager from the U.S. Securities and Exchange Commission (“SEC”) that allows the Fund to distribute long-term capital gains as frequently as quarterly in any one taxable year.

Unclaimed Share Accounts

Please be advised that abandoned or unclaimed property laws for certain states require financial organizations to transfer (escheat) unclaimed property (including Fund shares) to the state. Each state has its own definition of unclaimed property, and Fund shares could be considered “unclaimed property” due to account inactivity (e.g., no owner-generated activity for a certain period), returned mail (e.g., when mail sent to a shareholder is returned to the Fund's transfer agent as undeliverable), or a combination of both. If your Fund shares are categorized as unclaimed, your financial advisor or the Fund's transfer agent will follow the applicable state’s statutory requirements to contact you, but if unsuccessful, laws may require that the shares be escheated to the appropriate state. If this happens, you will have to contact the state to recover your property, which may involve time and expense. For more information on unclaimed property and how to maintain an active account, please contact your financial adviser or the Fund's transfer agent.

Options Writing

In order to further support the increase in distribution rate for the Fund, the Fund employs a strategy of writing (selling) covered call options on a portion of the common stocks in its portfolio, writing (selling) put options on a portion of the common stocks in its portfolio and, to a lesser extent, writing (selling) covered call and writing (selling) put options on indices of securities and sectors of securities generally within the healthcare industry. This option strategy is intended to generate current income from option premiums as a means to enhance distributions payable to the Fund's shareholders. The Fund's investment team does not anticipate any adverse implications to the Fund's existing total return potential or risk profile as a result of the strategy; however, the investment adviser may choose to decrease or modify its use of the option writing strategy to the extent that it may negatively impact the Fund's ability to benefit from capital appreciation. The Fund currently expects that it will not write options on more than 10% of its assets.

Open Market Repurchase Program

The Board has approved an open market repurchase and discount management policy (the “Program”). The Program allows the Fund to purchase, in the open market for a one-year period ending

September 30, 2026, up to 12% of its outstanding common shares, with the amount and timing of any repurchase determined at the discretion of the Fund's investment adviser. Such purchases may be made opportunistically at certain discounts to NAV per share in the reasonable judgment of management based on historical discount levels and current market conditions. If shares are repurchased, the Fund reports repurchase activity on its website on a monthly basis. For the fiscal year ended September 30, 2025, the Fund did not repurchase any shares through the Program.

On a quarterly basis, the Board will receive information on any transactions made pursuant to this policy during the prior quarter.

Portfolio Holdings Disclosure

The Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year are included in the Fund's semi-annual and annual reports to shareholders. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These reports are available on the SEC’s website at www.sec.gov. The Fund makes the information available to shareholders upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465.

Proxy Voting

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available by August 31 of the relevant year: (1) upon request without charge by calling Investor Relations toll-free at 1-800-522-5465; and (2) on the SEC’s website at www.sec.gov.

Investor Relations Information

As part of Aberdeen's commitment to shareholders, we invite you to visit the Fund on the web at www.aberdeenhqh.com. Here, you can view monthly fact sheets, quarterly commentary, distribution and performance information, as well as other Fund literature. Enroll in Aberdeen's email services to receive content related to your fund. In addition, you will receive monthly factsheets based on your preferences. Sign up today at www.aberdeenhqh.com.

•	Visit: www.aberdeenhqh.com

•	Email: Investor.Relations@aberdeenplc.com; or

•	Call: 1-800-522-5465 (toll free in the U.S.).

Yours sincerely,

2	abrdn Healthcare Investors

Letter to Shareholders (unaudited) (concluded)

/s/ Alan Goodson
Alan Goodson
President

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All amounts are U.S. Dollars unless otherwise stated.

abrdn Healthcare Investors

Report of the Investment Adviser (unaudited)

Performance Review

For the fiscal year ended September 30, 2025, HQH returned 10.90%¹ on a net asset value² (NAV) basis, compared with 1.05% for the Fund’s blended performance target³. On a market–price basis for the same period, shares returned 13.47%. The positive outcome reflected stock selection driven primarily by a few investments, but additionally by a broad SMID–cap biotechnology rally and a constructive cadence of clinical and regulatory catalysts.

Market Review

U.S. stocks, as measured by the broad S&P 500 Index, posted strong gains over the 12 months ended September 30, 2025.

Global markets fluctuated over the review period amid monetary policy shifts, trade developments, and geopolitical tensions. The U.S. Federal Reserve cut rates twice in late 2024 and again in mid–2025, supporting sentiment alongside hopes for a soft landing and easing inflation. President Trump’s election initially boosted equities, but optimism faded as tariff concerns and tighter immigration policies weighed on markets, leading to a sharp sell–off in April before rebounding after most tariffs were paused. Further support came from a U.S.–China tariff truce extension and new trade agreements with the EU and Japan, though optimism was tempered by steep new tariffs on pharmaceuticals and higher duties on several countries. Geopolitical risks, including Middle East violence, briefly pressured markets, but a U.S.–brokered ceasefire helped stabilize conditions. However, the partial shutdown of the U.S. government starting in September added to economic and political uncertainty. Inflation eased earlier in the year, but remaining above target, central banks maintained a data–dependent stance. Global economic growth held up better than expected, with early–2025 fears of a U.S. recession proving to be short–lived.

The performance of the U.S. healthcare sector notably lagged that of the S&P 500 Index over the period due to the sector’s defensive nature. In addition, the nomination of Robert F. Kennedy Jr. to run the Department of Health and Human Services affected the healthcare sector’s returns shortly after the announcement. Subsequently, healthcare stocks faced headwinds from regulatory uncertainty, including proposed Medicaid work requirements and uncertainty in biotechnology regulation and funding. Although the Trump administration announced high tariffs on branded and patented pharmaceutical imports, the tariff rate implemented was lower than initially feared. Moreover, companies building manufacturing

facilities in the U.S. were exempted, which helped to limit the policy’s perceived impact on the healthcare sector.

Portfolio Review

Allocation remained diversified across the healthcare ecosystem, with emphasis on therapeutics (biotech/biopharma) and diversified healthcare, complemented by select exposure to tools/diagnostics and med–tech. During the period we deliberately rotated down the market–cap spectrum within therapeutics—trimming select large–cap biopharma and reallocating to SMID–cap biotech—where we saw pronounced relative–value gaps versus larger peers, particularly in late–stage assets with visible milestones. This shift built on our ongoing focus on innovation–led franchises and tilted the portfolio further toward late–stage therapeutics, while maintaining balanced exposure elsewhere to manage subsector dispersion and event risk.

Performance was supported by targeted exposure to innovators with advancing pipelines and resilient franchises. uniQure, benefited from renewed gene–therapy optimism, including progress in Huntington’s disease (AMT–130, an unpartnered program) and epilepsy. The portfolio did benefit materially from share price gains in this company. Gilead Sciences contributed as investor focus on its HIV prevention franchise increased. Alnylam Pharmaceuticals rose on strong Amvuttra uptake and updates to its RNA cardiovascular platform with reaffirmed growth targets. Together these holdings exemplify the pipeline visibility and cash–flow durability we seek.

As in any portfolio, some investments did not perform as anticipated and detracted from overall results, notably Regeneron Pharmaceuticals, Sarepta Therapeutics, and UnitedHealth Group, where manufacturing costs/competition, clinical/regulatory scrutiny, and medical–cost/utilization trends, respectively, pressured sentiment. We have kept measured exposure where we see enduring competitive advantages and attractive long–term opportunity—in payers, scale and data assets that support cash generation as visibility improves; in innovative therapeutics, significant unmet need and milestone–rich pipelines; and in med–tech, durable adoption curves even as budgets reset. Several positions have de–rated, improving forward risk–reward while we await clarity on utilization, reimbursement, or regulatory pathways. Positions are sized to near–term uncertainty, reassessed around defined catalysts, and balanced within a broadly diversified portfolio.

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Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance quoted. Net asset value return data include investment management fees, custodial charges and administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions.

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2	Net asset value (“NAV”) – A key measure of the value of a company, fund or trust – the total value of assets less liabilities, divided by the number of shares.

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3	The blended performance target of the fund consists of 80% NASDAQ Biotechnology Index, 20% S&P Composite 1500 Health Care Index.

4	abrdn Healthcare Investors

Report of the Investment Adviser (unaudited) (continued)

We employed a modest degree of call–option⁴ writing/overwriting⁵,⁶, which was additive during the period. Selling covered calls on select holdings generated incremental income—especially around clinical–event volatility—and can partially offset downside following unfavorable outcomes. Trade–offs include capped upside during sharp rallies and potential assignment of called–away positions.

Venture exposure is a distinct, intentional feature of HQH. Our aim is to access differentiated science near pivotal inflection points, where rigorous diligence and structuring can create asymmetric long–term optionality alongside our public holdings. We emphasize: (i) milestone–based sizing (positions are small at inception, with increases tied to data, regulatory, or commercial progress); (ii) portfolio–level balance (diversified across mechanisms and stages); and (iii) discipline on valuation and syndicate quality. Venture investments can be volatile and are not expected to drive near–term results every year, but we believe they add a unique source of long–duration growth when pipelines convert to products or when strategic acquirers seek external innovation. During the period, the Fund invested in Crystalys Therapeutics (Dotinurad for gout/hyperuricemia) and participated in the initial financing of Third Arc Bio (multi–specific antibodies for oncology and immunology). Venture activity was measured and not a material driver of annual performance, consistent with our philosophy of carefully sized optionality.

Portfolio Activity

We introduced several new holdings in late 2024, including Halozyme Therapeutics, Vir Biotechnology and Travere Therapeutics, for a variety of reasons, including near–term clinical data events and commercial opportunities.

Moving into 2025, we made several changes to the portfolio. The portfolio management team identified relative value differentials favoring smaller–cap equities over large–cap pharmaceutical and biotechnology companies. Additionally, concerns over pending tariffs led us to adopt a more cautious stance toward the large–cap pharmaceutical and biotechnology sector. Examples of new initiations included Crinetics Pharmaceuticals, Personalis, Cidara Therapeutics, Avidity Biosciences, ARS Pharmaceuticals, NewAmsterdam Pharma, Tempus AI, and Sionna Therapeutics.

We also initiated Humana, a managed–care company, after its shares had underperformed earlier in 2025. The decision reflected the company’s stable Medicare Advantage franchise, along with demographic trends and recent membership gains. We added

Codexis, a small–cap company, as a new holding after a significant downturn in its share price. The investment reflected developments in its enzyme engineering pipeline, with particular focus on the company’s core biocatalyst technology used in pharmaceutical manufacturing and gene therapy development, as well as anticipated opportunities. We also initiated a position in Acadia Healthcare, which operates psychiatric hospitals and treatment centers, to gain exposure to behavioral health services. The company was added as a mid–cap holding with improving fundamentals. The decision reflected factors, such as moderating labor cost pressures and sustained demand for mental health services.

New positions initiated later in the period were CVS Health, Jazz Pharmaceuticals, Arcus Biosciences, Aquestive Therapeutics, Equillium, Abivax, and InspireMD, targeting diversified cash flows and clinical catalysts.

As part of the Fund’s venture activities, we made two new investments into two pre–public, venture–backed drug companies: Nuvig Therapeutics and Aviceda Therapeutics. We also made a new investment in a pre–public, venture–backed company, Abcuro.

Conversely, we sold several positions. These disposals included Exelixis after the company won a patent lawsuit, Pfizer due to reduced conviction and Edwards Lifesciences based on an assessment of revenue growth trends.

Some sales were motivated by a lack of confidence in the companies' prospects, while others resulted from failed clinical trials. Examples included Biogen, Johnson & Johnson, IDEXX Laboratories, Avantor, 89bio, Moderna, and Marinus Pharmaceuticals.

Meanwhile, we sold Stryker, HCA Healthcare and Medpace Holdings after periods of strong share–price performance. The disposals also reflected sector reallocation, a shift away from large–cap providers, and broader portfolio strategy considerations. We also sold Teva Pharmaceutical Industries, Halozyme Therapeutics, and others to recycle capital into higher–conviction companies. The portfolio tilted further towards late–stage therapeutics while maintaining diversified exposure.

The monthly distribution⁷ reflects the Fund’s current policy to provide shareholders with a relatively stable cash flow per share. During the 12–month period ended September 30, 2025, the distributions comprised ordinary income, capital gains, and a return of capital.

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4	Call option – A contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a set period.

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5	Call-option writing – Selling a call option, which obligates the seller to sell the asset at the strike price if the option is exercised.

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6	Overwriting – Selling a call option on an asset the seller does not expect to reach the strike price before expiration, aiming to collect the premium without exercise.

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7	Distribution – The payment of any income, capital gains or return of capital by a fund.

abrdn Healthcare Investors

Report of the Investment Adviser (unaudited) (concluded)

Outlook and Strategy

Uncertainty continues to cloud the macroeconomic, geopolitical, and market outlook. A combination of shifting fiscal and monetary policies along with structural changes in global trade dynamics has created an increasingly volatile market environment. Much of the focus remains on the Trump administration’s tariff strategy and its potential implications for economic growth and inflation. However, the broader macroeconomic backdrop is further complicated by labor–market data revisions, proposed tax cuts, widening budget deficits, evolving interest–rate policy, healthcare reform, and a range of other policy initiatives that may have both intended and unintended consequences. Given the rapidly evolving landscape, market participants are struggling to build meaningful conviction around the trajectory of both domestic and international economies. Policy and macro variables remain live sources of volatility, but we believe relative valuation for many healthcare subsectors—especially late–stage therapeutics and enabling platforms—remains attractive versus the broader market after multi–year de–rating. In our view, fundamentals should ultimately drive share appreciation: secular demand, productivity–enhancing tools and diagnostics, and pipelines converting to marketed products. We also expect continued M&A as large–cap companies address loss–of–exclusivity (LOE) cliffs and pipeline gaps; for small/mid–cap innovators and platform companies, this can provide valuation support and episodic catalysts. Parts of the healthcare sector—most visibly managed care (MCO)—face elevated uncertainty around utilization and reimbursement, but we expect volatility to moderate as visibility improves, and rate frameworks are finalized. For HQH, we will continue to pair core, cash–generative franchises with select innovation leaders, maintain a measured but meaningful venture sleeve, and—where valuations and milestones align—lean into SMID–cap opportunities created by valuation gaps with large–cap peers, keeping the portfolio diversified so that fundamentals—not headlines—drive returns over a full cycle.

abrdn Inc.

Risk Considerations

Past performance is not an indication of future results.

The healthcare industries can be volatile and a concentration of investments in any healthcare industry or in healthcare companies generally may increase the risk and volatility of an investment company’s portfolio. No assurance can be given that future declines in the market prices of securities of companies in the industries in which the Fund may invest will not occur, or that such declines will not adversely affect the Fund.

Healthcare-related issuers are likely to be more sensitive to, and possibly more adversely affected by, regulatory, economic or political factors or trends relating to the healthcare, agricultural and environmental technology industries. Healthcare companies have, in the past, been characterized by limited product focus, rapidly changing technology and extensive government regulation. In particular, technological advances can render an existing product, which may account for a disproportionate share of a company’s revenue, obsolete. Obtaining governmental approval from U.S. governmental agencies and from non-U.S. governmental agencies for new products can be lengthy, expensive and uncertain as to the outcome. Such delays in product development may result in the need to seek additional capital, potentially diluting the interests of existing investors such as the Fund.

Intense competition exists within and among certain healthcare industries, including competition to obtain and sustain proprietary technology protection upon which healthcare companies can be highly dependent for maintenance of profit margins and market exclusivity. The complex nature of the technologies involved can lead to patent disputes, including litigation, that may be costly and that could result in a company losing an exclusive right to a patent. Additionally, certain healthcare companies may be exposed to potential product liability risks that are inherent to the healthcare industries. A product liability claim may have a material adverse effect on a company in which the Fund has invested.

All of these factors, as well as others may cause the value of the Fund’s shares to fluctuate significantly over relatively short periods of time.

6	abrdn Healthcare Investors

Total Investment Return (unaudited)

The following table summarizes the average annual Fund performance compared to the Fund’s primary benchmark for the 1-year, 3-year, 5-year and 10-year periods ended September 30, 2025.

	1 Year	3 Years	5 Years	10 Years
Net Asset Value (NAV)	10.90%	12.81%	6.57%	5.98%
Market Price	13.47%	14.68%	8.48%	6.04%
80% Nasdaq Biotechnology Index, 20% S&P Composite 1500 Health Care Index	1.05%	9.32%	4.48%	5.68%
Nasdaq Biotechnology Index	3.19%	9.90%	3.58%	5.09%

Performance of a $10,000 Investment (as of September 30, 2025)

This graph shows the change in value of a hypothetical investment of $10,000 in the Fund for the periods indicated. For comparison, the same investment is shown in the indicated index.

Returns represent past performance. Total investment return at NAV is based on changes in the NAV of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. All return data at NAV includes fees charged to the Fund, which are listed in the Fund’s Statement of Operations under “Expenses.” Total investment return at market value is based on changes in the market price at which the Fund’s shares traded on the NYSE during the period and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. The Fund’s total investment return is based on the reported NAV as of the financial reporting period end date of September 30, 2025. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on both market price and NAV. Past performance is no guarantee of future results. The performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received from the Fund or the sale of Fund shares. The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return, market price and NAV will fluctuate. Performance information current to the most recent month-end is available at www.aberdeenhqh.com or by calling 800-522-5465.

The gross operating expense ratio based on the fiscal year ended September 30, 2025 was 1.11%.

abrdn Healthcare Investors

Portfolio Summary (as a percentage of net assets) (unaudited)

As of September 30, 2025

Asset Allocation
Common Stocks	88.8%
Convertible Preferred Stocks	6.8%
Milestone Interests	2.0%
Warrants	0.7%
Convertible Notes	0.4%
Short-Term Investments	1.4%
Call Options Written	(0.1%)
Other Assets in Excess of Liabilities	0.0%
	100.0%

Industries
Biotechnology	65.9%
Pharmaceuticals	14.5%
Health Care Equipment & Supplies	8.5%
Life Sciences Tools & Services	5.1%
Health Care Providers & Services	4.7%
Short-Term Investments	1.4%
Liabilities in Excess of Other Assets	(0.1%)
	100.0%

Top Ten Holdings
uniQure NV	7.6%
Amgen, Inc.	3.0%
Vertex Pharmaceuticals, Inc.	2.5%
Argenx SE, ADR	2.5%
Alnylam Pharmaceuticals, Inc.	2.3%
Cytokinetics, Inc.	2.2%
Regeneron Pharmaceuticals, Inc.	2.2%
BioMarin Pharmaceutical, Inc.	2.1%
Eli Lilly & Co.	2.1%
Abbott Laboratories	1.9%

8	abrdn Healthcare Investors

Portfolio of Investments

As of September 30, 2025

	Shares or Principal Amount		Value
Convertible Preferred Stocks^(a)^,(b)^,(c)—6.8%
Biotechnology—4.0%
Abcuro, Inc. Series B		532,816	$ 2,925,000
Abcuro, Inc. Series C1		117,926	712,120
Arbor Biotechnologies, Inc. Series B, 8.00%		82,076	1,359,999
Arbor Biotechnologies, Inc. Series C, 8.00%		827,250	3,399,997
Arkuda Therapeutics, Inc. Series A, 6.00%^(d)		2,353,932	948,870
Arkuda Therapeutics, Inc. Series B, 6.00%^(d)		1,044,322	375,016
Atalanta Therapeutics, Inc. Series B		1,777,778	3,200,000
Aviceda Therapeutics Series C		86,599	498,793
Flamingo Therapeutics, Inc. Series A3		243,458	327,278
Glycomine, Inc. Series C, 8.00%		6,584,840	3,950,904
Hotspot Therapeutics, Inc. Series B, 6.00%		2,875,000	6,900,000
Hotspot Therapeutics, Inc. Series C, 6.00%		632,394	2,049,526
Incendia Therapeutics, Inc. Series A		1,769,383	3,399,993
Priothera Co. Ltd. Series A, 6.00%^(d)		346,666	41
Quell Therapeutics Ltd. Series B^(e)		1,798,941	3,739,998
Recode Therapeutics, Inc. Series B, 5.00%		331,413	3,060,003
Seismic Therapeutics, Inc. Series B		647,722	2,924,983
Third Arc Bio, Inc. Series A, 8.00%		1,853,436	3,900,000
			43,672,521
Health Care Equipment & Supplies—0.0%
IO Light Holdings, Inc. Series A2		421,634	42
Pharmaceuticals—2.8%
Biotheryx, Inc. Series E, 8.00%		1,295,238	736,213
Crystalys Therapeutics, Inc. Series A		2,328,492	2,332,800
Curasen Therapeutics, Inc. Series A^(d)		21,114,774	10,124,534
Curasen Therapeutics, Inc. Series B^(d)		3,219,587	1,543,792
Endeavor Biomedicines, Inc. Series B, 8.00%		657,322	3,099,996
Endeavor Biomedicines, Inc. Series C, 8.00%		121,377	791,936
Engrail Therapeutics, Inc., 8.00%		4,768,649	5,049,999
HiberCell, Inc. Series B		2,773,472	1,103,010
HiberCell, Inc. Series C		1,529,261	708,966
Nuvig Therapeutics, Inc. Series B		1,644,892	1,724,998
Qlaris Bio, Inc. Series B^(d)		4,394,904	3,450,000
			30,666,244
Total Convertible Preferred Stocks			74,338,807
Convertible Notes^(a)^,(b)^,(c)—0.4%
Biotechnology—0.3%
Hotspot Therapeutics, Inc., 6.00%, 04/10/26	$	720,872	720,872
Incendia Therapeutics, Inc., 8.00%, 04/18/26		1,569,230	1,569,230
Incendia Therapeutics, Inc., 10.00%, 09/09/26		547,370	547,370
			2,837,472
Health Care Providers & Services—0.0%
Recode Therapeutics, Inc., 8.00%, 03/23/27		161,370	161,371

	Shares or Principal Amount		Value

Pharmaceuticals—0.1%
HiberCell, Inc., 10.00%, 12/31/25	$	439,002	$ 439,002
Curasen Therapeutics, Inc., 8.00%, 03/31/26^(d)		1,029,195	1,029,195
			1,468,197
Total Convertible Notes			4,467,040
Common Stocks—88.8%
Biotechnology—60.6%
AbbVie, Inc.		46,238	10,705,946
Abivax SA, ADR^(b)		109,000	9,254,100
Akero Therapeutics, Inc.^(b)		324,750	15,419,130
Alkermes PLC^(b)^,(e)		82,930	2,487,900
Alnylam Pharmaceuticals, Inc.^(b)		55,209	25,175,304
Amgen, Inc.		118,123	33,334,311
Arcus Biosciences, Inc.^(b)		137,136	1,865,050
Arcutis Biotherapeutics, Inc.^(b)		456,927	8,613,074
Argenx SE, ADR^(b)^,(f)		36,398	26,845,709
Arrowhead Pharmaceuticals, Inc.^(b)^,(f)		307,633	10,610,262
ARS Pharmaceuticals, Inc.^(b)		1,258,342	12,646,337
Ascendis Pharma AS, ADR^(b)^,(f)		29,241	5,813,403
Avidity Biosciences, Inc.^(b)		158,583	6,909,461
BioMarin Pharmaceutical, Inc.^(b)^,(f)		433,273	23,466,066
BioNTech SE, ADR^(b)^,(f)		156,035	15,388,172
Chinook Therapeutics, Inc. CVR^(a)^,(b)^,(c)		91,800	29,376
Cidara Therapeutics, Inc.^(b)^,(f)		121,218	11,607,836
Cytokinetics, Inc.^(b)^,(f)		429,845	23,624,281
Denali Therapeutics, Inc.^(b)		636,019	9,234,996
Geron Corp.^(b)		3,928,864	5,382,544
Gilead Sciences, Inc.		153,299	17,016,189
GRAIL, Inc.^(b)^,(f)		181,466	10,730,085
Ideaya Biosciences, Inc.^(b)		344,524	9,374,498
Immunic, Inc.^(b)		4,738,771	4,177,700
Immunovant, Inc.^(b)		650,869	10,492,008
Insmed, Inc.^(b)		133,612	19,241,464
Ionis Pharmaceuticals, Inc.^(b)		44,059	2,882,340
Janux Therapeutics, Inc.^(b)		252,161	6,162,815
Krystal Biotech, Inc.^(b)		39,218	6,923,154
Merus NV^(b)		103,372	9,732,474
Neurocrine Biosciences, Inc.^(b)		62,060	8,711,983
Newamsterdam Pharma Co. NV^(b)		268,916	7,647,971
Nuvalent, Inc., Class A^(b)		42,867	3,707,138
Palvella Therapeutics, Inc.^(b)		35,018	2,195,278
Regeneron Pharmaceuticals, Inc.		41,838	23,524,252
Rhythm Pharmaceuticals, Inc.^(b)		15,073	1,522,222
Sarepta Therapeutics, Inc.^(b)^,(f)		865,589	16,679,900
Sera Prognostics, Inc., Class A^(b)		1,145,722	3,505,909
Sionna Therapeutics, Inc.^(b)		661,270	19,447,951
Summit Therapeutics, Inc.^(b)		745,674	15,405,625
Sutro Biopharma, Inc.^(b)		69,389	60,257
Tectonic Therapeutic, Inc.^(b)		240,675	3,776,191
Travere Therapeutics, Inc.^(b)		665,607	15,908,007
TScan Therapeutics, Inc.^(b)		559,214	1,017,769
Twist Bioscience Corp.^(b)		209,543	5,896,540
Ultragenyx Pharmaceutical, Inc.^(b)		624,540	18,786,163
uniQure NV^(b)^,(e)		1,432,300	83,603,351
Vaxcyte, Inc.^(b)		492,580	17,742,732
Vericel Corp.^(b)		241,950	7,614,166
Vertex Pharmaceuticals, Inc.^(b)		70,373	27,560,882
Vir Biotechnology, Inc.^(b)		973,173	5,556,818

abrdn Healthcare Investors

Portfolio of Investments (continued)

As of September 30, 2025

	Shares or Principal Amount		Value
Common Stocks (continued)
Biotechnology (continued)
Xencor, Inc.^(b)		300,730	$ 3,527,563
Xenon Pharmaceuticals, Inc.^(b)		367,341	14,748,741
			663,293,394
Health Care Equipment & Supplies—8.5%
Abbott Laboratories		153,748	20,593,007
Becton Dickinson & Co.^(f)		58,286	10,909,391
Boston Scientific Corp.^(b)		81,310	7,938,295
Dexcom, Inc.^(b)		86,217	5,801,542
Inspire Medical Systems, Inc.^(b)		156,787	11,633,595
InspireMD, Inc.^(b)		1,219,960	2,940,104
Insulet Corp.^(b)		14,645	4,521,351
Intuitive Surgical, Inc.^(b)		26,558	11,877,534
Medtronic PLC^(e)		141,255	13,453,126
Tandem Diabetes Care, Inc.^(b)		292,029	3,545,232
Willow Laboratories, Inc.^(a)^,(b)^,(c)		160,000	16
			93,213,193
Health Care Providers & Services—4.7%
Acadia Healthcare Co., Inc.^(b)		158,106	3,914,705
CVS Health Corp.		119,183	8,985,206
Elevance Health, Inc.		23,761	7,677,654
Guardant Health, Inc.^(b)		75,303	4,704,932
Humana, Inc.		47,510	12,360,677
McKesson Corp.		2,045	1,579,844
Molina Healthcare, Inc.^(b)		37,834	7,239,914
Tenet Healthcare Corp.^(b)		11,261	2,286,434
UnitedHealth Group, Inc.		7,554	2,608,396
			51,357,762
Life Sciences Tools & Services—5.1%
Adaptive Biotechnologies Corp.^(b)		619,649	9,269,949
Codexis, Inc.^(b)		2,504,728	6,111,536
Danaher Corp.^(f)		60,739	12,042,114
Illumina, Inc.^(b)		77,288	7,340,041
Personalis, Inc.^(b)		1,313,531	8,564,222
Tempus AI, Inc.^(b)^,(f)		99,921	8,064,624
Thermo Fisher Scientific, Inc.		7,923	3,842,814
			55,235,300
Pharmaceuticals—9.9%
Aquestive Therapeutics, Inc.^(b)		428,840	2,397,216
AstraZeneca PLC, ADR		114,076	8,751,911
Axsome Therapeutics, Inc.^(b)		55,429	6,731,852
Bristol-Myers Squibb Co.^(f)		31,852	1,436,525
Crinetics Pharmaceuticals, Inc.^(b)		208,197	8,671,405
Edgewise Therapeutics, Inc.^(b)		356,587	5,783,841
Eli Lilly & Co.		29,564	22,557,332
EyePoint Pharmaceuticals, Inc.^(b)		520,522	7,412,233
Fusion Pharmaceuticals, Inc. CVR^(a)^,(b)^,(c)^,(e)		7,593	10,478
Jazz Pharmaceuticals PLC^(b)		50,964	6,717,055
LENZ Therapeutics, Inc.^(b)		91,389	4,256,900
Merck & Co., Inc.		74,337	6,239,105
Oculis Holding AG^(b)^,(e)		407,012	7,216,323
Spectrum Pharmaceuticals, Inc. CVR^(a)^,(b)^,(c)		79,790	0
Structure Therapeutics, Inc., ADR^(b)		381,989	10,695,692
Zoetis, Inc.		64,019	9,367,260
			108,245,128
Total Common Stocks			971,344,777

	Shares or Principal Amount		Value
Warrants^(b)—0.7%
Biotechnology—0.7%
Immunic, Inc., Series A(expiration date 12/31/2025)^(a)		5,247,245	$ 1,028,830
Immunic, Inc.		5,247,245	4,625,971
Immunic, Inc., Series B(expiration date 6/30/2030)^(a)		5,247,245	1,379,169
			7,033,970
Health Care Providers & Services—0.0%
Recode Therapeutics, Inc.(expiration date 9/23/2035, exercise price $0.01)^(a)^,(c)		161,371	0
Pharmaceuticals^(a)^,(c)—0.0%
HiberCell, Inc.(expiration date 09/15/28, exercise price $0.46)		1,529,261	2
HiberCell, Inc.(expiration date 09/13/34, exercise price $0.08)		5,487,525	5
			7
Total Warrants			7,033,977
Short-Term Investment—1.4%
State Street Institutional U.S. Government Money Market Fund, Premier Class, 4.09%^(g)		15,607,345	15,607,345
Total Short-Term Investment			15,607,345
Total Investments Before Milestone Interests—98.1% (Cost $857,572,048)			1,072,791,946
		Interests	Value
Milestone Interests^(a)^,(b)^,(c)—2.0%
Biotechnology—0.3%
Amphivena Milestone Interest		1	$ 0
Invetx, Inc. Milestone Interest		1	3,243,635
			3,243,635
Pharmaceuticals—1.7%
Afferent Milestone Interest		1	0
Amolyt Milestone Interest		1	2,516,698
Ethismos Research Milestone Interest		1	0
Neurovance Milestone Interest		1	16,077,438
			18,594,136
Total Milestone Interests			21,837,771
Total Investments (Cost $864,303,087)^(h)—100.1%			1,094,629,717
Liabilities in Excess of Other Assets—(0.1%)			(800,910)
Net Assets—100.0%			$1,093,828,807

(a)	Level 3 security. See Note 2(a) of the accompanying Notes to Financial Statements.
(b)	Non-income producing security.
(c)	Restricted security.
(d)	Affiliated issuers in which the Fund holds 5% or more of the voting securities (total market value of $19,538,041).
(e)	Foreign security.
(f)	A portion of security is pledged as collateral for call options written.
(g)	Registered investment company advised by State Street Investment Management. The rate shown is the 7 day yield as of September 30, 2025.
(h)	See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities.

10	abrdn Healthcare Investors

Portfolio of Investments (continued)

As of September 30, 2025

ADR	American Depositary Receipt
CVR	Contingent Value Right
PLC	Public Limited Company

abrdn Healthcare Investors

Portfolio of Investments (concluded)

As of September 30, 2025

	Number of Contracts (100 shares each)	Notional Amount ($)	Value ($)
Option Contracts Written—(0.1)%
Call Options Written—(0.1)%
Argenx SE Oct25 770 Call	13	(1,001,000)	(11,245)
Arrowhead Pharmaceuticals, Inc. Oct25 35 Call	563	(1,970,500)	(92,895)
Ascendis Pharma AS Oct25 210 Call	70	(1,470,000)	(23,590)
Becton Dickinson & Co. Oct25 190 Call	78	(1,482,000)	(17,784)
BioMarin Pharmaceutical, Inc. Oct25 57.5 Call	257	(1,477,750)	(15,420)
BioNTech SE Oct25 105 Call	94	(987,000)	(9,400)
Bristol-Myers Squibb Co. Oct25 45.5 Call	217	(987,350)	(6,510)
Cidara Therapeutics, Inc. Oct25 80 Call	185	(1,480,000)	(352,425)
Cytokinetics, Inc. Oct25 55 Call	269	(1,479,500)	(71,285)
Danaher Corp. Oct25 195 Call	76	(1,482,000)	(33,440)
GRAIL, Inc. Oct25 50 Call	200	(1,000,000)	(207,400)
GRAIL, Inc. Oct25 55 Call	140	(770,000)	(148,120)
GRAIL, Inc. Oct25 70 Call	100	(700,000)	(48,000)
Sarepta Therapeutics, Inc. Oct25 20 Call	740	(1,480,000)	(25,900)
Tempus AI, Inc. Oct25 90 Call	150	(1,350,000)	(29,250)
Total Call Options Written (Premiums received $(484,995))			(1,092,664)

See accompanying Notes to Financial Statements.

12	abrdn Healthcare Investors

Statement of Assets and Liabilities

As of September 30, 2025

Assets
Investments in unaffiliated issuers, at value (cost $813,988,920)	$ 1,037,646,560
Investments in affiliated issuers, at value (cost $27,975,783)	19,538,041
Short-term investment, at value (cost $15,607,345)	15,607,345
Milestone interests, at value (cost $6,731,039)	21,837,771
Foreign currency, at value (cost $56)	59
Receivable for investments sold	2,089,229
Interest and dividends receivable	449,324
Tax reclaim receivable	13,787
Prepaid expenses	75,341
Other assets (Note 2j)	272
Total assets	1,097,257,729
Liabilities
Payable for investments purchased	1,213,010
Written options, at value (premiums received $484,995)	1,092,664
Investment advisory fees payable (Note 3)	789,878
Investor relations fees payable (Note 3)	45,456
Trustee fees payable	35,187
Administration fees payable	21,564
Other accrued expenses	231,163
Total liabilities	3,428,922
Commitments and Contingencies (Notes 8 & 10)

Net Assets	$1,093,828,807
Composition of Net Assets
Common stock (par value $0.010 per share) (Note 5)	$ 555,103
Paid-in capital in excess of par	991,687,903
Distributable earnings	101,585,801
Net Assets	$1,093,828,807
Net asset value per share based on 55,510,323 shares issued and outstanding	$19.70^(a)

(a)	The NAV shown above differs from the traded NAV on September 30, 2025 due to financial statement rounding and/or financial statement adjustments.

See accompanying Notes to Financial Statements.

abrdn Healthcare Investors

Statement of Operations

For the Year Ended September 30, 2025

Net Investment Income
Investment Income:
Dividends	$ 6,531,989
Interest and other income	1,001,370
Total investment income	7,533,359
Expenses:
Investment advisory fee (Note 3)	9,679,507
Legal fees and expenses	186,194
Investor relations fees and expenses (Note 3)	177,463
Reports to shareholders and proxy solicitation	159,212
Independent auditors’ fees and tax expenses	150,628
Trustees' fees and expenses	144,128
Custodian’s fees and expenses	89,740
Administration fee	57,750
Transfer agent’s fees and expenses	55,726
Insurance expense	52,089
Miscellaneous	127,264
Total expenses	10,879,701

Net Investment Loss	(3,346,342)
Net Realized/Unrealized Gain/(Loss):
Net realized gain/(loss) from:
Investments	22,757,010
Written options	3,286,105
	26,043,115
Net change in unrealized appreciation/depreciation on:
Investments in unaffiliated issuers	74,321,064
Investments in affiliated issuers	1,911,863
Milestone interests	492,251
Written options	(808,673)
Foreign currency translation	3
	75,916,508
Net realized and unrealized gain from investments, milestone interests, written options and foreign currencies	101,959,623
Change in Net Assets Resulting from Operations	$98,613,281

See accompanying Notes to Financial Statements.

14	abrdn Healthcare Investors

Statements of Changes in Net Assets

	For the Year Ended September 30, 2025	For the Year Ended September 30, 2024
Increase/(Decrease) in Net Assets:
Operations:
Net investment loss	$(3,346,342)	$(349,962)
Net realized gain from investments and written options	26,043,115	47,763,436
Net change in unrealized appreciation on investments, milestone interests, written options and foreign currency translations	75,916,508	137,533,157
Net increase in net assets resulting from operations	98,613,281

SEC Form N-CSR filed by abrdn Healthcare Investors Shares of Beneficial Interest