N-CSRS 1 tm2516624d11_ncsrs.htm N-CSRS

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:	March 31, 2025

Item 1. Reports to Stockholders.

(a) A copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “1940 Act”) is filed herewith.

abrdn Healthcare Investors (HQH)

Semi-Annual Report

March 31, 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.

Based on generally accepted accounting principles, the Fund estimates the distributions for the fiscal year commenced October 1, 2024 through the distributions declared on May 9, 2025 consisted of 23% net realized short-term capital gains, 0% net realized long-term capital gains and 77% tax 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 Semi-Annual Report, which covers the activities of abrdn Healthcare Investors (the “Fund”), for the six-month period ended March 31, 2025. The Fund’s investment objective is to seek long-term capital appreciation by investing primarily in securities of healthcare companies. In addition, the Fund seeks to provide regular distribution of realized capital gains.

Total Investment Return¹

For the six-month period ended March 31, 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	-6.80%
Market Price²	-6.47%
80% Nasdaq Biotechnology Index, 20% S&P Composite 1500 Health Care Index⁴	-9.42%

For more information about Fund performance, please visit the Fund on the web at https://www.aberdeeninvestments.com/en-us/investor/investment-solutions/closed-end-funds. 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 six-month period 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(-)
3/31/2025	$17.66	$16.24	-8.04%
9/30/2024	$20.32	$18.62	-8.37%

During the six-month period ended March 31, 2025, the Fund’s NAV was within a range of $17.66 to $20.69 and the Fund’s market price traded within a range of $16.03 to $18.73. During the six-month period ended March 31, 2025, the Fund’s shares traded within a range of a premium(+)/discount(-) of -12.77% to -5.89%.

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 May 9, 2025, the Fund announced that it will pay on June 30, 2025, a stock distribution of US $0.54 per share to all shareholders of record as of May 22, 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.

{foots1}

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.

{foots1}

²	Assuming the reinvestment of dividends and distributions.

{foots1}

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.

{foots1}

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, 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 six-month period ended March 31, 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 and management will post the number of shares repurchased on the Fund's website on a monthly basis. Under the terms of the Program, the Fund is permitted to repurchase up to 12% of its outstanding shares of common stock in the open market during any 12-month period.

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 http://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 http://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 https://www.aberdeeninvestments.com/en-us/investor/investment-solutions/closed-end-funds. 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 https://www.aberdeeninvestments.com/en-us/investor/investment-solutions/closed-end-funds.

2	abrdn Healthcare Investors

Letter to Shareholders (unaudited) (concluded)

•	Visit: https://www.aberdeeninvestments.com/en-us/investor/investment-solutions/closed-end-funds

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

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

Yours sincerely,

/s/ Alan Goodson
Alan Goodson
President

{foots1}

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

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 six-month (not annualized), 1-year, 3-year, 5-year and 10-year periods ended March 31, 2025.

	6 Months	1 Year	3 Years	5 Years	10 Years
Net Asset Value (NAV)	-6.80%	1.52%	3.70%	7.15%	3.17%
Market Price	-6.47%	10.24%	2.70%	8.39%	2.03%
80% Nasdaq Biotechnology Index, 20% S&P Composite 1500 Health Care Index	-9.42%	-2.62%	1.98%	6.87%	2.76%
Nasdaq Biotechnology Index	-10.62%	-3.39%	1.46%	5.39%	2.30%

Performance of a $10,000 Investment (as of March 31, 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 March 31, 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 https://www.aberdeeninvestments.com/en-us/investor/investment-solutions/closed-end-funds or by calling 800-522-5465.

The annualized gross operating expense ratio based on the six-month period ended March 31, 2025 was 1.10%.

4	abrdn Healthcare Investors

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

As of March 31, 2025

Asset Allocation
Common Stocks	89.3%
Convertible Preferred Stocks	7.4%
Milestone Interests	2.3%
Convertible Notes	0.3%
Warrants	0.0%
Short-Term Investments	2.5%
Call Options Written	-
Liabilities in Excess of Other Assets	(1.8%)
	100.0%

Industries
Biotechnology	64.7%
Pharmaceuticals	15.2%
Health Care Equipment & Supplies	7.9%
Health Care Providers & Services	6.2%
Life Sciences Tools & Services	5.3%
Short-Term Investments	2.5%
Liabilities in Excess of Other Assets	(1.8%)
	100.0%

Top Ten Holdings
Gilead Sciences, Inc.	6.1%
Amgen, Inc.	6.0%
Regeneron Pharmaceuticals, Inc.	5.9%
Vertex Pharmaceuticals, Inc.	4.0%
Eli Lilly & Co.	3.6%
BioMarin Pharmaceutical, Inc.	2.9%
Alnylam Pharmaceuticals, Inc.	2.8%
UnitedHealth Group, Inc.	2.8%
Abbott Laboratories	2.1%
BioNTech SE, ADR	2.0%

abrdn Healthcare Investors

Portfolio of Investments (unaudited)

As of March 31, 2025

	Shares or Principal Amount		Value
Convertible Preferred Stocks^(a)^,(b)^,(c)—7.4%
Biotechnology—4.3%
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	3,399,998
Arkuda Therapeutics, Inc. Series A, 6.00%^(d)		2,353,932	1,077,395
Arkuda Therapeutics, Inc. Series B, 6.00%^(d)		1,044,322	438,824
Atalanta Therapeutics Series B		1,777,778	3,200,000
Aviceda Therapeutics Series C		86,599	498,793
Flamingo Therapeutics, Inc. Series A3		243,458	460,742
Glycomine, Inc. Series C, 8.00%		6,584,840	3,950,904
Hotspot Therapeutics, Inc. Series B, 6.00%		2,875,000	5,947,513
Hotspot Therapeutics, Inc. Series C, 6.00%		632,394	1,842,733
Incendia Therapeutics, Inc. Series A		1,769,383	3,399,993
Priothera Co. Ltd. Series A, 6.00%^(d)		346,666	37
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%		926,718	1,950,000
			40,889,035
Health Care Equipment & Supplies—0.0%
IO Light Holdinigs, Inc. Series A2		421,634	42
Pharmaceuticals—3.1%
Biotheryx, Inc. Series E, 8.00%		1,295,238	627,154
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	4,288,763
Endeavor Biomedicines, Inc. Series C, 8.00%		121,377	791,936
Engrail Therapeutics, Inc. Series B, 8.00%		4,768,649	5,049,999
HiberCell, Inc. Series B		2,773,472	1,145,167
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		4,394,904	3,450,000
			29,455,309
Total Convertible Preferred Stocks			70,344,386
Convertible Notes^(a)^,(b)^,(c)—0.3%
Biotechnology—0.2%
Hotspot Therapeutics, Inc., 6.00%, 04/10/26	$	720,872	720,872
Incendia Therapeutics, Inc., 8.00%, 04/18/25		1,569,230	1,569,230
			2,290,102
Pharmaceuticals—0.1%
HiberCell, Inc., 10.00%, 12/31/25		439,002	439,002
Total Convertible Notes			2,729,104
Common Stocks—89.3%
Biotechnology—59.9%
AbbVie, Inc.^(f)		74,154	15,536,746
Akero Therapeutics, Inc.^(b)^,(f)		242,032	9,797,455
Alkermes PLC^(b)^,(e)^,(f)		89,235	2,946,540
Alnylam Pharmaceuticals, Inc.^(b)^,(f)		97,674	26,373,934
Amgen, Inc.^(f)		182,323	56,802,731
Arcutis Biotherapeutics, Inc.^(b)		395,004	6,177,863
Argenx SE, ADR^(b)		29,509	17,465,344
Arrowhead Pharmaceuticals, Inc.^(b)		517,298	6,590,377
ARS Pharmaceuticals, Inc.^(b)		433,475	5,453,116
Ascendis Pharma AS, ADR^(b)^,(f)		96,830	15,091,924

	Shares or Principal Amount		Value


Avidity Biosciences, Inc.^(b)		141,554	$ 4,178,674
BioMarin Pharmaceutical, Inc.^(b)^,(f)		393,089	27,787,461
BioNTech SE, ADR^(b)^,(f)		211,403	19,250,357
Chinook Therapeutics, Inc. CVR^(a)^,(b)^,(c)		91,800	207,468
Cidara Therapeutics, Inc.^(b)		84,117	1,811,880
Crinetics Pharmaceuticals, Inc.^(b)		116,778	3,916,734
Cytokinetics, Inc.^(b)^,(f)		285,648	11,480,193
Denali Therapeutics, Inc.^(b)		422,310	5,741,304
Galera Therapeutics, Inc.^(b)		296,462	8,894
Geron Corp.^(b)		2,332,131	3,708,088
Gilead Sciences, Inc.^(f)		520,818	58,357,657
GRAIL, Inc.^(b)		198,327	5,065,272
Halozyme Therapeutics, Inc.^(b)		67,157	4,285,288
Ideaya Biosciences, Inc.^(b)		286,579	4,694,164
I-Mab, ADR^(b)		53,885	44,396
Immunovant, Inc.^(b)		556,610	9,512,465
Insmed, Inc.^(b)		210,996	16,096,885
Ionis Pharmaceuticals, Inc.^(b)		264,178	7,970,250
Janux Therapeutics, Inc.^(b)		153,551	4,145,877
Krystal Biotech, Inc.^(b)		24,744	4,461,343
Merus NV^(b)		56,166	2,364,027
Mural Oncology PLC^(b)^,(e)		17,390	21,911
Neurocrine Biosciences, Inc.^(b)		114,326	12,644,456
Newamsterdam Pharma Co. NV^(b)		119,582	2,447,844
Novavax, Inc.^(b)		37,188	238,375
Nuvalent, Inc., Class A^(b)		42,867	3,040,128
Praxis Precision Medicines, Inc.^(b)		60,418	2,288,030
Pyxis Oncology, Inc.^(b)		626,637	614,042
Rallybio Corp.^(b)		755,076	494,197
Regeneron Pharmaceuticals, Inc.^(f)		88,608	56,197,852
Rhythm Pharmaceuticals, Inc.^(b)		71,232	3,773,159
Sarepta Therapeutics, Inc.^(b)^,(f)		284,179	18,136,304
Scholar Rock Holding Corp.^(b)		58,722	1,887,912
Sera Prognostics, Inc., Class A^(b)		600,000	2,208,000
Sionna Therapeutics, Inc.^(b)		520,716	5,446,689
Summit Therapeutics, Inc.^(b)^,(f)		788,556	15,211,245
Sutro Biopharma, Inc.^(b)		69,389	45,144
Travere Therapeutics, Inc.^(b)		330,000	5,913,600
TScan Therapeutics, Inc.^(b)		498,008	687,251
Ultragenyx Pharmaceutical, Inc.^(b)		324,294	11,742,686
uniQure NV^(b)^,(e)^,(f)		1,149,694	12,186,756
Vaxcyte, Inc.^(b)		177,104	6,687,447
Vertex Pharmaceuticals, Inc.^(b)^,(f)		77,609	37,626,395
Vir Biotechnology, Inc.^(b)		477,038	3,091,206
Xencor, Inc.^(b)		191,603	2,038,656
Xenon Pharmaceuticals, Inc.^(b)		245,906	8,250,146
			570,244,138
Health Care Equipment & Supplies—7.9%
Abbott Laboratories^(f)		146,684	19,457,633
Becton Dickinson & Co.^(f)		46,369	10,621,283
Boston Scientific Corp.^(b)^,(f)		22,943	2,314,490
Dexcom, Inc.^(b)		64,933	4,434,275
Inspire Medical Systems, Inc.^(b)		45,501	7,247,399
Insulet Corp.^(b)		4,770	1,252,650
Intuitive Surgical, Inc.^(b)^,(f)		23,786	11,780,492
Medtronic PLC^(e)^,(f)		140,729	12,645,908
Stryker Corp.		5,969	2,221,960
Tandem Diabetes Care, Inc.^(b)		170,194	3,260,917
Willow Laboratories, Inc.^(a)^,(b)^,(c)		160,000	16
			75,237,023

6	abrdn Healthcare Investors

Portfolio of Investments (unaudited) (continued)

As of March 31, 2025

	Shares or Principal Amount		Value
Common Stocks (continued)
Health Care Providers & Services—6.2%
Elevance Health, Inc.		23,071	$ 10,034,962
Guardant Health, Inc.^(b)		128,783	5,486,156
HCA Healthcare, Inc.		14,452	4,993,888
McKesson Corp.		3,401	2,288,839
Molina Healthcare, Inc.^(b)		14,994	4,938,874
Tenet Healthcare Corp.^(b)^,(f)		35,984	4,839,848
UnitedHealth Group, Inc.^(f)		50,353	26,372,384
			58,954,951
Life Sciences Tools & Services—5.3%
Adaptive Biotechnologies Corp.^(b)		764,885	5,683,095
Danaher Corp.		20,650	4,233,250
Illumina, Inc.^(b)^,(f)		143,240	11,364,662
Medpace Holdings, Inc.^(b)		15,401	4,692,531
Personalis, Inc.^(b)		810,579	2,845,132
Tempus AI, Inc.^(b)		168,958	8,150,534
Thermo Fisher Scientific, Inc.^(f)		26,994	13,432,214
			50,401,418
Pharmaceuticals—10.0%
Amylyx Pharmaceuticals, Inc.^(b)		1,687,269	5,972,932
AstraZeneca PLC, ADR		127,486	9,370,221
Axsome Therapeutics, Inc.^(b)		34,152	3,983,148
Bristol-Myers Squibb Co.		50,638	3,088,412
Edgewise Therapeutics, Inc.^(b)		196,575	4,324,650
Eli Lilly & Co.		41,131	33,970,504
EyePoint Pharmaceuticals, Inc.^(b)		160,464	869,715
Fusion Pharmaceuticals, Inc. CVR^(a)^,(b)^,(c)^,(e)		7,593	10,478
Merck & Co., Inc.		127,564	11,450,145
Oculis Holding AG^(b)^,(e)		407,012	7,745,438
Spectrum Pharmaceuticals, Inc. CVR^(a)^,(b)^,(c)		79,790	0
Structure Therapeutics, Inc., ADR^(b)		169,939	2,941,644
Tetraphase Pharmaceuticals, Inc. CVR^(a)^,(b)^,(c)		28,747	575
Teva Pharmaceutical Industries Ltd., ADR^(b)		235,815	3,624,477
Zoetis, Inc.^(f)		45,408	7,476,427
			94,828,766
Total Common Stocks			849,666,296
Warrants^(a)^,(b)^,(c)—0.0%
Pharmaceuticals—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

	Shares or Principal Amount		Value
Short-Term Investment—2.5%
State Street Institutional U.S. Government Money Market Fund, Premier Class, 4.29%^(g)		23,346,081	$ 23,346,081
Total Short-Term Investment			23,346,081
Total Investments Before Milestone Interests—99.5% (Cost $893,643,696)			946,085,874
		Interests	Value
Milestone Interests^(a)^,(b)^,(c)—2.3%
Biotechnology—0.3%
Amphivena Milestone Interest		1	$ 0
Invetx, Inc. Milestone Interest		1	3,092,652
			3,092,652
Pharmaceuticals—2.0%
Afferent Milestone Interest		1	0
Amolyt Milestone Interest		1	1,638,962
Ethismos Research Milestone Interest		1	0
Neurovance Milestone Interest		1	17,226,142
			18,865,104
Total Milestone Interests			21,957,756
Total Investments (Cost $900,374,735)^(h)—101.8%			968,043,630
Liabilities in Excess of Other Assets (1.8%)			(16,834,239)
Net Assets—100.0%			$951,209,391

(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 $13,184,582).
(e)	Foreign security.
(f)	A portion of security is pledged as collateral for call options written.
(g)	Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of March 31, 2025.
(h)	See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities.

ADR	American Depositary Receipt
ARS	Auction Rate Security
CVR	Contingent Value Right
PLC	Public Limited Company

abrdn Healthcare Investors

Portfolio of Investments (unaudited) (concluded)

As of March 31, 2025

	Number of Contracts (100 shares each)	Notional Amount ($)	Value ($)
Option Contracts Written—0.0%
Call Options Written—0.0%
Abbott Laboratories Apr25 135 Call	183	(2,470,500)	(42,090)
AbbVie, Inc. Apr25 215 Call	46	(989,000)	(4,048)
Akero Therapeutics, Inc. Apr25 50 Call	198	(990,000)	(5,742)
Alnylam Pharmaceuticals, Inc. Apr25 270 Call	37	(999,000)	(29,230)
Amgen, Inc. Apr25 330 Call	75	(2,475,000)	(9,000)
Becton Dickinson & Co. Apr25 240 Call	41	(984,000)	(4,100)
BioMarin Pharmaceutical, Inc. Apr25 75 Call	264	(1,980,000)	(10,560)
BioNTech SE Apr25 105 Call	141	(1,480,500)	(5,640)
Boston Scientific Corp. Apr25 100 Call	99	(990,000)	(29,700)
Cytokinetics, Inc. Apr25 50 Call	198	(990,000)	(10,890)
Gilead Sciences, Inc. Apr25 115 Call	129	(1,483,500)	(19,350)
Illumina, Inc. Apr25 90 Call	165	(1,485,000)	(5,775)
Intuitive Surgical, Inc. Apr25 520 Call	19	(988,000)	(2,755)
Medtronic PLC Apr25 95 Call	208	(1,976,000)	(5,408)
Regeneron Pharmaceuticals, Inc. Apr25 680 Call	15	(1,020,000)	(6,000)
Regeneron Pharmaceuticals, Inc. Apr25 680 Call	22	(1,496,000)	(2,860)
Sarepta Therapeutics, Inc. Apr25 85 Call	465	(3,952,500)	(6,975)
Summit Therapeutics, Inc. Apr25 25 Call	594	(1,485,000)	(9,504)
Tenet Healthcare Corp. Apr25 135 Call	147	(1,984,500)	(71,295)
Thermo Fisher Scientific, Inc. Apr25 540 Call	18	(972,000)	(1,836)
uniQure NV Apr25 15 Call	659	(988,500)	(6,590)
UnitedHealth Group, Inc. Apr25 530 Call	47	(2,491,000)	(84,835)
Vertex Pharmaceuticals, Inc. Apr25 530 Call	28	(1,484,000)	(3,024)
Zoetis, Inc. Apr25 170 Call	87	(1,479,000)	(11,310)
Total Call Options Written (Premiums received $(700,455))			(388,517)

See accompanying Notes to Financial Statements.

8	abrdn Healthcare Investors

Statement of Assets and Liabilities (unaudited)

As of March 31, 2025

Assets
Investments in unaffiliated issuers, at value(cost $848,891,219)	$ 909,555,211
Investments in affiliated issuers, at value (cost $21,406,385)	13,184,582
Short-term investment, at value (cost $23,346,081)	23,346,081
Milestone interests, at value(cost $6,731,050)	21,957,756
Foreign currency, at value (cost $56)	54
Receivable for investments sold	9,786,320
Interest and dividends receivable	452,458
Tax reclaim receivable	13,787
Prepaid expenses	71,409
Other assets (Note 2j)	272
Total assets	978,367,930
Liabilities
Due to custodian	16,120,538
Payable for investments purchased	9,385,453
Investment advisory fees payable (Note 3)	847,459
Written options, at value (premiums received$700,455)	388,517
Trustee fees payable	31,523
Administration fees payable	13,629
Investor relations fees payable (Note 3)	6,806
Other accrued expenses	364,614
Total liabilities	27,158,539
Commitments and Contingencies (Notes 8 & 10)

Net Assets	$951,209,391
Composition of Net Assets
Common stock (par value $0.010 per share) (Note 5)	$ 538,622
Paid-in capital in excess of par	970,096,265
Accumulated loss	(19,425,496)
Net Assets	$951,209,391
Net asset value per share based on 53,862,184 shares issued and outstanding	$17.66

See accompanying Notes to Financial Statements.

abrdn Healthcare Investors

Statement of Operations (unaudited)

For the Six-Month Period Ended March 31, 2025

Net Investment Income
Investment Income:
Dividends	$ 3,951,904
Interest and other income	780,840
Total investment income	4,732,744
Expenses:
Investment advisory fee (Note 3)	4,952,246
Legal fees and expenses	134,907
Independent auditors’ fees and tax expenses	78,874
Reports to shareholders and proxy solicitation	78,390
Trustees' fees and expenses	70,089
Investor relations fees and expenses (Note 3)	49,384
Insurance expense	32,202
Custodian’s fees and expenses	31,490
Transfer agent’s fees and expenses	30,119
Administration fee	25,605
Miscellaneous	74,659
Total expenses	5,557,965

Net Investment Loss	(825,221)
Net Realized/Unrealized Gain/(Loss):
Net realized gain/(loss) from:
Investments in unaffiliated issuers	10,822,294
Written options	991,833
	11,814,127
Net change in unrealized appreciation/depreciation on:
Investments in unaffiliated issuers	(88,668,745)
Investments in affiliated issuers	2,123,963
Milestone interests	612,225
Written options	110,934
Foreign currency translation	(2)
	(85,821,625)
Net realized and unrealized gain from investments, milestone interests, written options and foreign currencies	(74,007,498)
Change in Net Assets Resulting from Operations	$(74,832,719)

See accompanying Notes to Financial Statements.

10	abrdn Healthcare Investors

Statements of Changes in Net Assets

	For the Six-Month Period Ended March 31, 2025 (unaudited)	For the Year Ended September 30, 2024
Increase/(Decrease) in Net Assets:
Operations:
Net investment loss	$(825,221)	$(349,962)
Net realized gain from investments and written options	11,814,127	47,763,436
Net change in unrealized appreciation/depreciation investments, milestone interests, written options and foreign currency translations	(85,821,625)	137,533,157
Net increase/(decrease) in net assets resulting from operations	(74,832,719)	184,946,631
Distributions to Shareholders From:
Distributable earnings	(62,538,774)	(72,972,514)
Return of capital	–	(30,002,831)
Net decrease in net assets from distributions	(62,538,774)	(102,975,345)
Reinvestment of dividends resulting in the issuance of 1,732,292 and 2,687,876 shares of common stock, respectively	28,984,932	46,281,675
Change in net assets	(108,386,561)	128,252,961
Net Assets:
Beginning of period	1,059,595,952	931,342,991
End of period	$951,209,391	$1,059,595,952

Amounts listed as “–” are $0 or round to $0.

See accompanying Notes to Financial Statements.

abrdn Healthcare Investors

Statement of Cash Flows (unaudited)

For the Six-Month Period Ended March 31, 2025

Cash flows from operating activities:
Net increase/(decrease) in net assets resulting from operations	$ (74,832,719)
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Investments purchased	(335,036,652)
Investments sold and principal repayments	340,783,605
Proceeds from option contracts written	1,227,639
Net change in short-term investments	11,085,456
Decrease in interest, dividends and other receivables	42,908
Decrease in prepaid expenses	22,992
Decrease in accrued investment advisory fee payable	(14,022)
Increase in other accrued expenses	146,599
Net change in unrealized depreciation of investments	85,821,623
Net change in unrealized depreciation on foreign currency translation	2
Net realized gain on investments transactions and options	(11,814,127)
Net cash provided by operating activities	17,433,304
Cash flows from financing activities:
Increase in payable to custodian	$ 16,120,538
Distributions paid to shareholders	(33,553,842)
Net cash used in financing activities	(17,433,304)
Effect of exchange rate on cash	(2)
Net change in cash	(2)
Unrestricted and restricted cash and foreign currency, beginning of period	56
Unrestricted and restricted cash and foreign currency, end of period	$54

See accompanying Notes to Financial Statements.

12	abrdn Healthcare Investors

Financial Highlights

	For the Six-Month Period Ended March 31,	For the Fiscal Years Ended September 30,
	2025 (unaudited)	2024 ^(a)	2023	2022 ^(b)	2021 ^(b)	2020 ^(b)
PER SHARE OPERATING PERFORMANCE:
Net asset value per common share, beginning of period	$20.33	$18.84	$19.36	$25.47	$24.04	$20.33
Net investment loss^(c)	(0.02)	(0.01)	(0.02)	(0.08)	(0.14)	(0.05)
Net realized and unrealized gains/(losses) on investments, written options and foreign currency transactions	(1.46)	3.54	1.11	(4.20)	3.63	5.50
Total from investment operations applicable to common shareholders	(1.48)	3.53	1.09	(4.28)	3.49	5.45
Distributions to common shareholders from:
Net investment income	(1.19)	(0.56)	–	(0.11)	(0.61)	(0.01)
Net realized gains	–	(0.89)	(1.61)	(1.72)	(1.45)	(1.77)
Return of capital	–	(0.59)	–	–	–	–
Total distributions	(1.19)	(2.04)	(1.61)	(1.83)	(2.06)	(1.78)
Effect of Fund shares repurchased	–	–	–	–	–	0.04
Net asset value per common share, end of period	$17.66	$20.33	$18.84	$19.36	$25.47	$24.04
Market price, end of period	$16.24	$18.62	$15.55	$17.28	$25.57	$20.62
Total Investment Return Based on^(d):
Market price	(6.47%)	34.58%	(1.24%)	(26.01%)	34.64%	23.38%
Net asset value	(6.80%)	21.28%^(e)	6.80%	(16.78%)	15.03%	29.77%
Ratio to Average Net Assets Applicable to Common Shareholders/Supplementary Data:
Net assets applicable to common shareholders, end of period (000 omitted)	$951,209	$1,059,596	$931,343	$916,565	$1,156,902	$1,054,696
Average net assets applicable to common shareholders (000 omitted)	$1,011,602	$989,149	$976,134	$1,007,052	$1,143,870	$991,235
Gross operating expenses	1.10%^(f)	1.12%	1.18%	1.19%	1.11%	1.10%
Net Investment loss	(0.16%)^(f)	(0.04%)	(0.12%)	(0.36%)	(0.54%)	(0.20%)
Portfolio turnover	34%^(g)	44%	43%	41%	69%	52%

(a)	Effective October 27, 2023, abrdn Inc. became the investment adviser of the Fund. Prior to October 27, 2023, the Fund was managed by Tekla Capital Management, LLC. Members of the portfolio management team from Tekla joined abrdn Inc., and continue to manage the Fund.
(b)	Beginning with the year ended September 30, 2023, the Fund’s financial statements were audited by KPMG LLP. Previous years were audited by a different independent registered public accounting firm.
(c)	Based on average shares outstanding.
(d)	Total investment return based on market value is calculated assuming that shares of the Fund’s common stock were purchased at the closing market price as of the beginning of the period, dividends, capital gains and other distributions were reinvested as provided for in the Fund’s dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Fund’s net asset value is substituted for the closing market value.
(e)	The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.
(f)	Annualized. See accompanying Notes to Financial Statements.

abrdn Healthcare Investors

Financial Highlights (concluded)

(g)	Not annualized.

Amounts listed as “–” are $0 or round to $0.

See accompanying Notes to Financial Statements.

14	abrdn Healthcare Investors

Notes to Financial Statements (unaudited)
March 31, 2025

1. Organization

abrdn Healthcare Investors (the "Fund") is a Massachusetts business trust formed on October 31, 1986 and registered under the Investment Company Act of 1940 as a non-diversified closed-end management investment company. The Fund commenced operations on April 22, 1987. The Fund’s investment objective is to seek long-term capital appreciation by investing primarily in securities of healthcare companies. In addition, the Fund seeks to provide regular distribution of realized capital gains. The Fund invests primarily in securities of public and private companies that are believed by the Fund’s investment adviser, abrdn Inc. (the "Investment Adviser," the "Adviser" or "Aberdeen") to have significant potential for above-average growth. The Fund may invest up to 20% of its net assets in securities of foreign issuers, expected to be located primarily in Western Europe, Canada and Japan, and securities of U.S. issuers that are traded primarily in foreign markets.

2. Summary of Significant Accounting Policies

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 Financial Services-Investment Companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to generally accepted accounting principles in the United States of America ("U.S. GAAP"). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. Dollars and the U.S. Dollar is used as both the functional and reporting currency.

a. Security Valuation:

The Fund values its securities at 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, also referred to as market value. Pursuant to Rule 2a-5 under the 1940 Act, the Board designated Aberdeen 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 or deemed unreliable and the Fund's investments in securities of early and/or later stage financing of a privately held companies ("Venture Capital Securities").

In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. 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.

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.

abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

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 Valuation Designee pursuant to fair valuation policies and procedures approved by the Board.

Derivative instruments are valued at fair value. Exchange-traded futures are generally Level 1 investments and centrally cleared swaps and forwards 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. Futures contracts are valued at the settlement price or at the last bid price if no settlement price is available. Swap agreements are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows). 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 the 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/exchange-traded funds ("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 generally 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.

Short-term investments are comprised of cash and cash equivalents invested in short-term investment funds which are redeemable daily.

The Fund sweeps available cash into the State Street Institutional U.S. Government Money Market Fund, which has elected to qualify as a “government money market fund” pursuant to Rule 2a-7 under the 1940 Act, and has an objective, which is not guaranteed, to maintain a $1.00 per share NAV. Generally, these investment types are categorized as Level 1 investments.

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 Adviser 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.

The three-level hierarchy of inputs is summarized below:

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

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

Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of 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

16	abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

A summary of standard inputs is listed below:

Security Type	Standard Inputs
Foreign equities utilizing a fair value factor	Depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security.

The following is a summary of the inputs used as of March 31, 2025 in valuing the Fund's investments and other financial instruments at fair value. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:

Investments, at Value	Level 1 – Quoted Prices	Level 2 – Other Significant Observable Inputs	Level 3 – Significant Unobservable Inputs	Total
Assets
Investments in Securities
Common Stocks	$849,447,759	$–	$218,537	$849,666,296
Convertible Preferred Stocks	–	–	70,344,386	70,344,386
Milestone Interests	–	–	21,957,756	21,957,756
Convertible Notes	–	–	2,729,104	2,729,104
Warrants	–	–	7	7
Short-Term Investment	23,346,081	–	–	23,346,081
Total Investments	$872,793,840	$–	$95,249,790	$968,043,630
Other Assets	$–	$–	$272	$272
Total Investment Assets	$872,793,840	$–	$95,250,062	$968,043,902
Liabilities
Other Financial Instruments
Written Options	$(388,517)	$–	$–	$(388,517)
Total Investment Liabilities	$(388,517)	$–	$–	$(388,517)

abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

Rollforward of Level 3 Fair Value Measurements For the Six Months Ended March 31, 2025
Investments in Securities	Balance as of September 30, 2024	Net Realized Gain (Loss) and Change in Unrealized Appreciation/ Depreciation	Net Purchases and conversions	Net Sales and conversions	Balance as of March 31, 2025	Net Change in Unrealized Appreciation/ Depreciation from Investments Held at March 31, 2025
Common Stocks
Biotechnology	$207,468	$0	$0	$0	$207,468	$0
Health Care Equipment & Supplies	16	0	0	0	16	0
Pharmaceuticals	12,203	(1,150)	0	0	11,053	(1,150)
Convertible Notes
Biotechnology	2,290,102	0	0	0	2,290,102	0
Pharmaceuticals	439,002	0	0	0	439,002	0
Convertible Preferred Stocks
Biotechnology	34,452,920	955,158	7,297,915	(1,816,958)	40,889,035	955,158
Health Care Equipment & Supplies	42	0	0	0	42	0
Pharmaceuticals	27,169,007	(205,061)	2,491,363	0	29,455,309	(205,061)
Milestone Interests
Biotechnology	3,119,480	183,832	0	(210,660)	3,092,652	183,832
Pharmaceuticals	18,436,700	428,404	0	0	18,865,104	428,404
Warrants
Pharmaceuticals	7	0	0	0	7	0
Other Assets	272	0	0	0	272	0
Total	$86,127,219	$1,361,183	$9,789,278	$(2,027,618)	$95,250,062	$1,361,183

Description	Fair Value at 03/31/25	Valuation Technique (s)	Unobservable Inputs	Range	Weighted Average	Relationship Between Fair Value and Input; if input value increases then Fair Value:
Common Stocks	$16	Market approach	Transaction Price^(a)	N/A	N/A	Increase
	$218,521	Income approach	Probability of events Timing of events	0.00% - 90.00% 0.00 - 4.75 years	74.73% 1.70 years	Increase Decrease
Convertible Notes	$2,729,104	Market approach	Transaction Price^(a)	N/A	N/A	Increase
Convertible Preferred Stocks	$59,183,788	Market approach	Transaction Price^(a)	N/A	N/A	Increase
	$9,644,379	Income approach	Timing of events Implied market volatility Risk free rate Transaction Price^(a)	3 years 113.26% - 137.91% 3.48% - 4.31% N/A	3 years 118.00% 3.64% N/A	Decrease Decrease Decrease Increase
	$1,516,219	Income approach	Discount rate Probability of events Timing of events	4.23% - 4.47% 1.00% - 90%s 1.50 - 12 years	4.35% 27.16%s 5.59 years	Decrease Increase Decrease

18	abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

Description	Fair Value at 03/31/25	Valuation Technique (s)	Unobservable Inputs	Range	Weighted Average	Relationship Between Fair Value and Input; if input value increases then Fair Value:
Milestone Interests	$21,957,756	Income approach	Discount rate Probability of events Timing of events	4.23% - 10.00% 0.00% - 90.00% 0.00 - 9.25 years	5.10% 48.43% 3.60 years	Decrease Increase Decrease
Warrants	$7	Market approach	Transaction Price^(a)	N/A	N/A	Increase
Other Assets	$272		Discount rate Probability of events Timing of events	4.41% 5.00% 6.75 years	4.41% 5.00% 6.75 years	Decrease Increase Decrease
Total	$95,250,062

Amounts listed as “–” are $0 or round to $0.

(a)	The valuation technique used as a basis to approximate fair value of these investments is based on a transaction price or subsequent financing rounds.

b. Restricted Securities:

Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Fund may invest in restricted securities, including unregistered securities eligible for resale without registration pursuant to Rule 144A and privately-placed securities of U.S. and non-U.S. issuers offered outside the U.S. without registration pursuant to Regulation S under the Securities Act of 1933, as amended (the "1933 Act"). Rule 144A securities may be freely traded among certain qualified institutional investors, such as the Fund, but resale of such securities in the U.S. is permitted only in limited circumstances.

c. Foreign Currency Translation:

Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of the Valuation Time, as provided by an independent pricing service approved by the Board.

Foreign currency amounts are translated into U.S. Dollars on the following basis:

(i) fair value of investment securities, other assets and liabilities – at the current daily rates of exchange at the Valuation Time; and

(ii) purchases and sales of investment securities, income and expenses – at the relevant rates of exchange prevailing on the respective dates of such transactions.

The Fund does not isolate that portion of gains and losses on investments in equity securities due to changes in the foreign exchange rates from the portion due to changes in market prices of

equity securities. Accordingly, realized and unrealized foreign currency gains and losses with respect to such securities are included in the reported net realized and unrealized gains and losses on investment transactions balances.

Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation/depreciation in value of investments, and translation of other assets and liabilities denominated in foreign currencies.

Net realized foreign exchange gains or losses represent foreign exchange gains and losses from transactions in foreign currencies and forward foreign currency contracts, exchange gains or losses realized between the trade date and settlement date on security transactions, and the difference between the amounts of interest and dividends recorded on the Fund’s books and the U.S. Dollar equivalent of the amounts actually received.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. Dollar. Generally, when the U.S. Dollar rises in value against foreign currency, the Fund's investments denominated in that foreign currency will lose value because the foreign currency is worth fewer U.S. Dollars; the opposite effect occurs if the U.S. Dollar falls in relative value.

abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

d. Rights Issues and Warrants:

Rights issues give the right, normally to existing shareholders, to buy a proportional number of additional securities at a given price (generally at a discount) within a fixed period (generally a short-term period) and are offered at the company’s discretion. Warrants are securities that give the holder the right to buy common stock at a specified price for a specified period of time. Rights issues and warrants are speculative and have no value if they are not exercised before the expiration date. Rights issues and warrants are valued at the last sale price on the exchange on which they are traded.

e. Options:

An option contract is a contract in which the writer (seller) of the option grants the buyer of the option, upon payment of a premium, the right to purchase from (call option) or sell to (put option) the writer a designated instrument at a specified price within a specified period of time. Certain options, including options on indices, will require cash settlement by the Fund if the option is exercised.

The Fund’s obligation under an exchange traded written option or investment in an exchange traded purchased option is valued at the last sale price, or in the absence of a sale, the mean between the closing bid and asked prices. Gain or loss is recognized when the option contract expires, is exercised or is closed.

If the Fund writes a covered call option, the Fund foregoes, in exchange for the premium, the opportunity to profit during the option period

from an increase in the market value of the underlying security above the exercise price. If the Fund writes a put option it accepts the risk of a decline in the market value of the underlying security below the exercise price. Over-the-counter options have the risk of the potential inability of counterparties to meet the terms of their contracts. The Fund’s maximum exposure to purchased options is limited to the premium initially paid. In addition, certain risks may arise upon entering into option contracts including the risk that an illiquid secondary market will limit the Fund’s ability to close out an option contract prior to the expiration date and that a change in the value of the option contract may not correlate exactly with changes in the value of the securities or currencies hedged.

All options on securities and securities indices written by the Fund are required to be covered. When the Fund writes a call option, this means that during the life of the option the Fund may own or have the contractual right to acquire the securities subject to the option or may maintain with the Fund’s custodian in a segregated account appropriate liquid securities in an amount at least equal to the market value of the securities underlying the option. When the Fund writes a put option, this means that the Fund will maintain with the Fund’s custodian in a segregated account appropriate liquid securities in an amount at least equal to the exercise price of the option.

Summary of Derivative Instruments:

The Fund may use derivatives for various purposes as noted above. The following is a summary of the fair value of derivative instruments, not accounted for as hedging instruments, as of March 31, 2025:

	Risk Exposure Category
	Interest Rate Contracts	Foreign Currency Contracts	Credit Contracts	Equity Contracts	Commodity Contracts	Other	Total

Liabilities:
Unrealized depreciation on:
Written Options, market value	$–	$–	$–	$388,517	$–	$–	$388,517
Total	$–	$–	$–	$388,517	$–	$–	$388,517

Amounts listed as “–” are $0 or round to $0.

20	abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

The effect of derivative instruments on the Statement of Operations for the six-month period ended March 31, 2025:

	Risk Exposure Category
	Interest Rate Contracts	Foreign Currency Contracts	Credit Contracts	Equity Contracts	Commodity Contracts	Total

Realized Gain/(Loss) on Derivatives Recognized as a Result of Operations:
Written Options	$–	$–	$–	$991,833	$–	$991,833
Total	$–	$–	$–	$991,833	$–	$991,833
Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized as a Result of Operations:
Written Options	$–	$–	$–	$110,934	$–	$110,934
Total	$–	$–	$–	$110,934	$–	$110,934

Amounts listed as “–” are $0 or round to $0.

Information about derivatives reflected as of the date of this report is generally indicative of the type of activity for the six-month period ended March 31, 2025. The table below summarizes the weighted average values of derivatives holdings for the Fund during the six-month period ended March 31, 2025.

Derivative	Average Notional Value
Written Options Contracts	$278,806

f. Security Transactions, Investment Income and Expenses:

Security transactions are recorded on the trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated on the identified cost basis. Dividend income and corporate actions are recorded generally on the ex-date, except for certain dividends and corporate actions which may be recorded after the ex-date, as soon as the Fund acquires information regarding such dividends or corporate actions. Interest income and expenses are recorded on an accrual basis.

g. Distributions:

The Fund has a managed distribution policy to pay distributions from net investment income supplemented by net realized capital gains and return of capital distributions, if necessary, on a quarterly basis. The managed distribution policy is subject to regular review by the Board. The Fund will also declare and pay distributions at least annually from net realized gains on investment transactions and net realized foreign exchange gains, if any. Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

h. Federal Income Taxes:

The Fund intends to continue to qualify as a “regulated investment company” ("RIC") by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all federal income taxes. Therefore, no federal income tax provision is required.

The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Since tax authorities can examine previously filed tax returns, the Fund's U.S. federal and state tax returns for each of the most recent four fiscal years up to the most recent fiscal year ended September 30, 2024 are subject to such review.

i. Milestone Interests

The Fund holds financial instruments which reflect the current value of future milestone payments the Fund may receive as a result of contractual obligations from other parties. The value of such payments are adjusted to reflect the estimated risk based on the relative uncertainty of both the timing and the achievement of individual milestones. A risk to the Fund is that the milestones will not be achieved and no payment will be received by the Fund. The milestone interests were received as part of the proceeds from the sale of six private companies. Any payments received are treated as a reduction of the cost basis of the milestone interests with payments received in excess of the cost basis treated as a realized gain. The contractual obligations with respect to the milestone interests provide for

abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

payments at various stages of the development of Afferent, Amolyt, Amphivena, Ethismos Research, Invetx and Neurovance principal product candidate as of the date of the sale.

The following is a summary of the impact of the milestone interests on the financial statements as of and for the six-month period ended March 31, 2025:

Statement of Assets and Liabilities, Milestone interests, at value	$21,957,756
Statement of Assets and Liabilities, Total distributable earnings	$15,226,706
Statement of Operations, Change in unrealized appreciation/depreciation	$612,225

j. Other Assets

Other assets in the Statement of Assets and Liabilities consists of amounts due to the Fund at various times in the future in connection with the sale of investments in one private company.

3. Agreements and Transactions with Affiliates

a. Investment Adviser and Other Affiliated Fees

Effective as of the close of business October 27, 2023, abrdn Inc. serves as the Fund’s Investment Adviser pursuant to an investment advisory agreement (the “Advisory Agreement”) with the Fund. The Adviser is a wholly-owned indirect subsidiary of Aberdeen Group plc. In rendering management services, the Adviser may use the resources of investment adviser subsidiaries of Aberdeen Group plc. These affiliates have entered into procedures pursuant to which investment professionals from affiliates may render portfolio management and research services as associated persons of the Adviser. As compensation for its services to the Fund, the Investment Adviser receives an annual investment advisory fee at an annual rate of (i) 2.50% of the average net assets for the month of its venture capital and other restricted securities up to 25% of net assets and (ii) for all other net assets, 0.98% of the average net assets up to $250 million, 0.88% of the average net assets for the next $250 million, 0.80% of the average net assets for the next $500 million and 0.70% of the average net assets thereafter. The aggregate fee would not exceed a rate when annualized of 1.36%. For the six-month period ended March 31, 2025, the Fund paid the Adviser $4,952,246.

Effective upon the close of business on October 27, 2023, the Adviser entered into a written contract with the Fund to limit the total ordinary operating expenses of the Fund (excluding leverage costs, interest, taxes, brokerage commissions, acquired fund fees and expenses and any non-routine expenses) from exceeding 1.17% of the average daily net assets of the Fund on an annualized basis for twelve months (the “Expense Limitation Agreement”). The Expense Limitation Agreement may not be terminated before October 27, 2025, without the approval of the Fund’s trustees who are not

“interested persons” of the Fund (as defined in the 1940 Act). For the six-month period ended March 31, 2025 the Adviser did not waive any Fund's expenses pursuant to the Expense Limitation Agreement.

b. Investor Relations:

Effective March 1, 2024, under the terms of the Investor Relations Services Agreement, abrdn Inc. is compensated to provide and may pay third parties to provide investor relations services to the Fund and certain other funds advised by Aberdeen or its affiliates as part of an Investor Relations Program. Under the Investor Relations Services Agreement, the Fund owes a portion of the fees related to the Investor Relations Program (the "Fund's Portion"). However, investor relations services fees are limited by Aberdeen so that the Fund will only pay up to an annual rate of 0.05% of the Fund's average weekly net assets. Any difference between the capped rate of 0.05% of the Fund's average weekly net assets and the Fund's Portion is paid for by Aberdeen.

Pursuant to the terms of the Investor Relations Services Agreement, abrdn Inc. (or third parties engaged by Aberdeen), among other things, provides objective and timely information to shareholders based on publicly-available information; provides information efficiently through the use of technology while offering shareholders immediate access to knowledgeable investor relations representatives; develops and maintains effective communications with investment professionals from a wide variety of firms; creates and maintains investor relations communication materials such as fund manager interviews, films and webcasts, publishes white papers, magazine articles and other relevant materials discussing the Fund's investment results, portfolio positioning and outlook; develops and maintains effective communications with large institutional shareholders; responds to specific shareholder questions; and reports activities and results to the Board and management detailing insight into general shareholder sentiment.

During the six-month period ended March 31, 2025, the Fund incurred investor relations fees of approximately $49,384. For the six-month period ended March 31, 2025, Aberdeen did not contribute to the investor relations fees for the Fund because the Fund’s contribution was below 0.05% of the Fund’s average weekly net assets on an annual basis.

4. Investment Transactions

Purchases and sales of investment securities (excluding short-term securities) for the six-month period ended March 31, 2025, were $344,422,105 and $348,594,529, respectively.

22	abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

5. Capital

The Fund is authorized to issue an unlimited number of common shares of beneficial interest at par value $0.01 per common share. As of March 31, 2025, there were 53,862,184 shares of common stock issued and outstanding.

The following table shows the shares issued by the Fund as a part of a quarterly distribution to shareholders during the fiscal year ended March 31, 2025.

Payment Date	Shares Issued
January 10, 2025	884,565
March 31, 2025	847,727

6. Other Transactions with Affiliates

An affiliate company is a company in which the Fund holds 5% or more of the voting securities. Transactions involving such companies during the six-month period ended March 31, 2025 were as follows:

	Value at September 30, 2024	Cost of Purchases	Proceeds from Shares Sold	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation	Value at March 31, 2025	Shares held at March 31, 2025	Principal Amount at March 31, 2025	Dividend Income	Capital Gains Distributions
Arkuda Therapeutics, Inc.	$1,196,819	$0	$(1,816,958)	$0	$2,136,358	$1,516,219	3,398,254	$0	$0	$0
Curasen Therapeutics, Inc.	10,922,803	754,809	0	0	(9,286)	11,668,326	24,334,361	0	0	0
Priothora Co. Ltd.	39	3,107	0	0	(3,109)	37	346,666	0	0	0
Total	$12,119,661	$757,916	$(1,816,958)	$0	$2,123,963	$13,184,582	28,079,281	$0	$0	$0

7. Open Market Repurchase Program

In March 2024, the Board approved the renewal of the repurchase program to allow the Fund to repurchase up to 12% of its outstanding shares in the open market for a one-year period ending July 14, 2025.

For the six-month period ended March 31, 2025, the Fund did not repurchase any shares through this program.

8. Private Companies and Other Restricted Securities

The Fund may invest in private companies and other restricted securities if these securities currently comprise 40% or less of net assets. The value of these securities represented 10.01% of the Fund’s net assets at March 31, 2025.

At March 31, 2025, the Fund had a commitment of $6,742,873 relating to additional investments in three private companies.

The following table details the acquisition date, cost, carrying value per unit, and value of the Fund’s private companies and other restricted securities at March 31, 2025. The Fund on its own does not have the right to demand that such securities be registered.

abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

Security	Acquisition Date	Cost	Carrying Value per Unit	Value
Abcuro, Inc., Series B — Convertible Preferred Stock	12/19/23, 8/10/23	$2,927,272	$5.49	$2,925,000
Abcuro, Inc., Series C1 — Convertible Preferred Stock	2/7/25	712,120	6.04	712,120
Afferent Milestone Interest	7/27/16	57,300	0.00	0
Amolyt Milestone Interest	7/12/24	1,598,208	102.55	1,638,962
Amphivena Milestone Interest	10/18/22	0	0.00	0
Arbor Biotechnologies, Inc., Series B — Convertible Preferred Stock	10/29/21	1,367,906	16.57	1,359,999
Arbor Biotechnologies, Inc., Series C — Convertible Preferred Stock	9/27/24	3,408,611	4.11	3,399,998
Arkuda Therapeutics, Inc., Series B — Convertible Preferred Stock	1/24/22, 1/23/23	1,398,454	0.42	438,824
Arkuda Therapeutics, Inc., Series A — Convertible Preferred Stock	5/16/19, 04/2/20, 7/15/21	4,244,888	0.46	1,077,395
Atalanta Therapeutics, Series B — Convertible Preferred Stock	10/11/24	3,201,518	1.80	3,200,000
Aviceda Therapeutics, Series C — Convertible Preferred Stock	12/17/24	509,922	5.76	498,793
Biotheryx, Inc., Series E — Convertible Preferred Stock	5/19/21	6,814,111	0.48	627,154
Chinook Therapeutics, Inc. CVR — Common Stock	8/14/23	35,802	2.26	207,468
Curasen Therapeutics, Inc., Series B — Convertible Preferred Stock	8/20/24, 1/7/25	1,545,504	0.48	1,543,792
Curasen Therapeutics, Inc., Series A — Convertible Preferred Stock	8/20/24	10,165,381	0.48	10,124,534
Endeavor Biomedicines, Inc., Series B — Convertible Preferred Stock	1/21/22	3,106,638	6.53	4,288,763
Endeavor Biomedicines, Inc., Series C — Convertible Preferred Stock	4/19/24	792,452	6.53	791,936
Engrail Therapeutics, Inc., Series B — Convertible Preferred Stock	3/14/24	5,051,699	1.06	5,049,999
Ethismos Research Milestone Interest	10/31/17	0	0.00	0
Flamingo Therapeutics, Inc., Series A3 — Convertible Preferred Stock	4/21/20, 10/28/20	5,612,058	1.89	460,742
Fusion Pharmaceuticals, Inc. CVR — Common Stock	7/10/24	4,176	1.38	10,478
Glycomine, Inc., Series C — Convertible Preferred Stock	7/22/24, 3/26/25	3,952,262	0.60	3,950,904
HiberCell, Inc., Series C — Convertible Preferred Stock	5/5/21	711,659	0.46	708,965
HiberCell, Inc., Series B — Convertible Preferred Stock	5/5/21	3,415,841	0.41	1,145,167
HiberCell, Inc. — Warrant, expiration date 9/15/28	9/20/22	2,749	0.00*	2
HiberCell, Inc. — Convertible Note	9/13/24	439,002	100.00	439,002
HiberCell, Inc. — Warrant, expiration date 9/13/34	9/13/24	0	0.00*	6
Hotspot Therapeutics, Inc., Series C — Convertible Preferred Stock	11/15/21	2,055,041	2.91	1,842,733
Hotspot Therapeutics, Inc., Series B — Convertible Preferred Stock	4/22/20, 6/17/21	6,925,074	2.07	5,947,513
Hotspot Therapeutics, Inc. — Convertible Note	4/12/24	720,872	100.00	720,872
Incendia Therapeutics, Inc., Series A — Convertible Preferred Stock	8/12/21	3,412,960	1.92	3,399,993
Incendia Therapeutics, Inc. — Convertible Note	4/18/24	1,569,230	100.00	1,569,230
Invetx, Inc. Milestone Interest	9/4/24	2,908,820	99.14	3,092,652
IO Light Holdinigs, Inc., Series A2 — Convertible Preferred Stock	4/30/20, 5/17/21, 9/15/21	1,395,847	0.00*	42
Neurovance Milestone Interest	3/20/17	2,166,711	351.51	17,226,141
Nuvig Therapeutics, Inc., Series B — Convertible Preferred Stock	10/18/24	1,731,484	1.05	1,724,998
Priothera Co. Ltd., Series A — Convertible Preferred Stock	10/7/20	4,052,158	0.00*	38
Qlaris Bio, Inc., Series B — Convertible Preferred Stock	4/11/24	3,453,838	0.79	3,450,000
Quell Therapeutics Ltd., Series B — Convertible Preferred Stock	11/29/21, 03/23/22, 2/18/25	3,420,830	2.08	3,739,998
Recode Therapeutics, Inc., Series B — Convertible Preferred Stock	1/26/24, 10/12/21, 2/16/22	3,074,644	9.23	3,060,003
Seismic Therapeutics, Inc., Series B — Convertible Preferred Stock	8/30/24	2,931,369	4.52	2,924,983
Spectrum Pharmaceuticals, Inc. CVR — Common Stock	8/2/23	6,383	0.00	0
Tetraphase Pharmaceuticals, Inc. CVR — Common Stock	9/1/21	5,749	0.02	575
Third Arc Bio, Inc., Series A — Convertible Preferred Stock	7/15/24	1,956,945	2.10	1,950,000
Willow Laboratories, Inc. — Common Stock	3/31/98	0	0.00*	16
Total		$102,863,488		$95,249,790

*	Carrying value is less than $0.01.

24	abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

9. Portfolio Investment Risks

a. Concentration Risk:

The Fund’s portfolio may be more sensitive to, and possibly more adversely affected by, regulatory, economic or political factors or trends relating to the healthcare industries than a portfolio of companies representing a larger number of industries. This risk is in addition to the risks normally associated with any strategy seeking capital appreciation by investing in a portfolio of equity securities. As a result of its concentration policy, the Fund’s investments may be subject to greater risk than a fund that has securities representing a broader range of investments and may cause the value of the Fund’s shares to fluctuate significantly over relatively short periods of time.

b. Derivatives Risk (including Options):

Derivatives are speculative and may hurt the Fund’s performance. The potential benefits to be derived from the Fund’s options strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate.

c. Equity Securities Risk:

The stock or other security of a company may not perform as well as expected, and may decrease in value, because of factors related to the company (such as poorer than expected earnings or certain management decisions), to the industry in which the company is engaged (such as a reduction in the demand for products or services in a particular industry) or to the market as a whole (such as periods of market volatility or instability, or general and prolonged periods of economic decline). Holders of common stock generally are subject to more risks than holders of preferred stock or debt securities because the right to repayment of common shareholders' claims is subordinated to that of preferred stock and debt securities upon the bankruptcy of the issuer.

d. Key Personnel Risk:

There may be only a limited number of securities professionals who have comparable experience to that of the Fund’s existing portfolio management team in the area of healthcare companies. If one or more of the team members dies, resigns, retires or is otherwise unable to act on behalf of the Investment Adviser, there can be no assurance that a suitable replacement could be found immediately.

e. Restricted Securities and Valuation Risk:

Some of the Fund’s investments are subject to restrictions on resale and generally have no established trading market or are otherwise illiquid with little or no trading activity. The valuation process requires an analysis of various factors. The Fund’s fair value methodology includes the examination of, among other things, (i) the existence of any contractual restrictions on the disposition of the securities; (ii)

information obtained from the issuer which may include an analysis of the company’s financial statements, the company’s products or intended markets, or the company’s technologies; and (iii) the price of a security sold at arm’s length in an issuer’s subsequent completed round of financing. As there is typically no readily available market value for some of the Restricted Securities in the Fund’s portfolio, such Restricted Securities in the Fund’s portfolio are valued at fair value as determined in good faith by or under the direction of the Board pursuant to the Fund’s valuation policy and a consistently applied valuation process. Because of the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s investments determined in good faith by the Board may differ significantly from the values that would have been used had a ready market existed for the investments, and the differences could be material.

f. Risks Associated with the Fund’s Option Strategy:

The ability of the Fund to achieve its investment objective is partially dependent on the successful implementation of its option strategy. There are several risks associated with transactions in options on securities used in connection with the Fund's option strategy. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objectives. A decision as to whether, when and how to use options involves the exercise of skill and judgment, and even a well-conceived transaction may be unsuccessful to some degree because of market behavior or unexpected events.

As the writer of a call option covered with a security held by the Fund, the Fund forgoes, during the option's life, the opportunities to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call but retains the risk of loss should the price of the underlying security decline. As the Fund writes such covered calls over more of its portfolio, its ability to benefit from capital appreciation becomes more limited. To the extent the Fund writes call options that are not fully covered by securities in its portfolio (such as calls on an index or sector), it will lose money if the portion of the security or securities underlying the option that is not covered by securities in the Fund's portfolio appreciate in value above the exercise price of the option by an amount that exceeds the premium received on the option plus the exercise price of the option. The amount of this loss theoretically could be unlimited. The writer of an option has no control over the time when it may be required to fulfill its obligations as a writer of the option.

abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

When the Fund writes put options, it bears the risk of loss if the value of the underlying stock declines below the exercise price minus the put premium. If the option is exercised, the Fund could incur a loss if it is required to purchase the stock underlying the put option at a price greater than the market price of the stock at the time of exercise plus the put premium the Fund received when it wrote the option. While the Fund's potential gain as the writer of a covered put option is limited to the premium received from the purchaser of the put option, the Fund risks a loss equal to the entire exercise price of the option minus the put premium.

g. Sector Risk:

To the extent that the Fund has a significant portion of its assets invested in securities conducting business in a broadly related group of industries within an economic sector, the Fund may be more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.

Pharmaceutical Sector Risk. The success of companies in the pharmaceutical sector is highly dependent on the development, procurement and marketing of drugs. The values of pharmaceutical companies are also dependent on the development, protection and exploitation of intellectual property rights and other proprietary information, and the profitability of pharmaceutical companies may be significantly affected by such things as the expiration of patents or the loss of, or the inability to enforce, intellectual property rights. The research and other costs associated with developing or procuring new drugs and the related intellectual property rights can be significant, and the results of such research and expenditures are unpredictable. There can be no assurance that those efforts or costs will result in the development of a profitable drug.

The pharmaceutical sector is also subject to rapid and significant technological change and competitive forces that may make drugs obsolete or make it difficult to raise prices and, in fact, may result in price discounting. Companies in the pharmaceutical sector may also be subject to expenses and losses from extensive litigation based on intellectual property, product liability and similar claims. Companies in the pharmaceutical sector may be adversely affected by government regulation and changes in reimbursement rates. The ability of many pharmaceutical companies to commercialize and monetize current and any future products depends in part on the extent to which reimbursement for the cost of such products and related treatments are available from third-party payors, such as Medicare, Medicaid, private health insurance plans and health maintenance organizations.

Biotechnology Industry Risk. The success of biotechnology companies is highly dependent on the development, procurement and/or marketing of drugs. The values of biotechnology companies are also dependent on the development, protection and exploitation of

intellectual property rights and other proprietary information, and the profitability of biotechnology companies may be significantly affected by such things as the expiration of patents or the loss of, or the inability to enforce, intellectual property rights. The research and other costs associated with developing or procuring new drugs, products or technologies and the related intellectual property rights can be significant, and the results of such research and expenditures are unpredictable. There can be no assurance that those efforts or costs will result in the development of a profitable drug, product or technology.

The biotechnology sector is also subject to rapid and significant technological change and competitive forces that may make drugs, products or technologies obsolete or make it difficult to raise prices and, in fact, may result in price discounting. Companies in the biotechnology sector may also be subject to expenses and losses from extensive litigation based on intellectual property, product liability and similar claims. Companies in the biotechnology sector may be adversely affected by government regulation and changes in reimbursement rates. Healthcare providers, principally hospitals, that transact with companies in the biotechnology industry, often rely on third party payors, such as Medicare, Medicaid, private health insurance plans and health maintenance organizations to reimburse all or a portion of the cost of healthcare related products or services. Biotechnology companies will continue to be affected by the efforts of governments and third-party payors to contain or reduce health care costs.

Managed Care Sector Risk. Companies in the managed care sector often assume the risk of both medical and administrative costs for their customers in return for monthly premiums. The profitability of these products depends in large part on the ability of such companies to predict, price for, and effectively manage medical costs. Managed care companies base the premiums they charge and their Medicare bids on estimates of future medical costs over the fixed contract period; however, many factors may cause actual costs to exceed what was estimated and reflected in premiums or bids.

Managed care companies are regulated at the federal, state, local and international levels. The evolution of the ACA and other regulatory reforms could materially and adversely affect the manner in which U.S. managed care companies conduct business and their results of operations, financial position and cash flows. New laws or regulations could drive substantial change to the way healthcare products and services are currently delivered and paid for in the United States. A transformative overhaul of the U.S. healthcare system could impact the financial viability of managed care companies in which the Fund may invest.

Life Science and Tools Industry Risk. Life science industries are characterized by limited product focus, rapidly changing technology,

26	abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

extensive government regulation, and intense competition. In particular, technological advances can render an existing product, which may account for a disproportionate share of a company’s revenue, obsolete. Extensive regulation can delay cause delays in product development, which may disadvantage a company in an intensely competitive environment. These various factors may result in abrupt advances and declines in the securities prices of particular companies, and, in some cases, may have a broad effect on the prices of securities of companies in particular life science industries.

Healthcare Technology Sector Risk. Companies in the healthcare technology sector may incur substantial cost related to product-related liabilities, interruptions at their data centers or client support facilities, claims for infringement or misappropriation of intellectual property rights of others, or infringement or misappropriation of their intellectual property. Each of these may adversely impact the prices of securities of companies in the healthcare technology sector.

Additionally, the success of healthcare technology companies depends upon the recruitment and retention of key personnel. The failure to attract and retain qualified personnel could have a material adverse effect on healthcare technology companies’ prospects for long-term growth.

Healthcare Services Sector Risk. The operations of healthcare services companies are subject to extensive federal, state and local government regulations. A violation or departure from any of these legal requirements may result in government audits, lower reimbursements, significant fines and penalties, the potential loss of certification, recoupment efforts or voluntary repayments. If healthcare services companies fail to adhere to all of the complex government regulations that apply to their businesses, such companies could suffer severe consequences that would substantially reduce revenues, earnings, cash flows and stock prices.

A substantial percentage of a healthcare services company’s service revenues may be generated from patients who have state Medicaid or other non-Medicare government-based programs, such as coverage through the Department of Veterans Affairs (“VA”), as their primary coverage. As state governments and other governmental organizations face increasing budgetary pressure, healthcare services companies may in turn face reductions in payment rates, delays in the receipt of payments, limitations on enrollee eligibility or other changes to the applicable programs.

Healthcare Supplies Sector Risk. If healthcare supplies companies are unable to successfully expand their product lines through internal research and development and acquisitions or are unable to successfully grow their business through marketing partnerships, their business may be materially and adversely affected.

Quality is extremely important to healthcare supplies companies and their customers due to the serious and costly consequences of product failure. Quality certifications are critical to the marketing success of their products and services. If a healthcare supplies company fails to meet these standards or fails to adapt to evolving standards, its reputation could be damaged, it could lose customers, and its revenue and results of operations could decline.

Healthcare Facilities Sector Risk. A healthcare facility’s ability to negotiate favorable contracts significantly affects the revenues and operating results of such healthcare facilities. If a healthcare facility is unable to enter into and maintain managed care contractual arrangements on acceptable terms, if it experiences material reductions in the contracted rates received from managed care payers, or if it has difficulty collecting from managed care payers, its results of operations could be adversely affected.

Further changes in the Medicare and Medicaid programs or other government health care programs could have an adverse effect on a healthcare facility’s business. In addition to the changes affected by the ACA, the Medicare and Medicaid programs are subject to other regulatory changes which could materially increase or decrease payments from government programs in the future, as well as affect the cost of providing services to patients and the timing of payments to facilities, which could in turn adversely affect a healthcare facility’s overall business, financial condition, results of operations or cashflows.

Healthcare Equipment Sector Risk. The medical device markets are highly competitive and characterized by rapid change, which may affect a company’s ability to be competitive. They are also rigorously regulated and it is anticipated that governmental authorities will continue to scrutinize this industry closely, and that additional regulation may increase compliance and legal costs, exposure to litigation, and other adverse effects to operations.

Healthcare equipment companies are substantially dependent on patent and other proprietary rights and failing to protect such rights or to be successful in litigation related to such rights may negatively impact the ability of healthcare equipment companies to sell current or future products. Quality problems with the processes, goods and services of a healthcare equipment company could harm the company’s reputation for producing high-quality products and erode its competitive advantage, sales and market share. Quality certifications are critical to the marketing success of goods and services. If a healthcare equipment company fails to meet these standards, its reputation could be damaged, it could lose customers, and its revenue and results of operations could decline.

Healthcare Distributors Sector Risk. Companies in the healthcare distribution sector operate in markets that are highly competitive and in an industry that is highly regulated and often subject to legal proceedings. Due to the nature of the business of healthcare

abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (continued)
March 31, 2025

distribution companies, each of the above may have an adverse impact on the securities prices of companies in the healthcare distribution sector.

Healthcare distribution companies depend on the availability of various components, compounds, raw materials and energy supplied by others for their operations. Any of these supplier relationships could be interrupted due to events beyond the control of such companies, including pandemics, epidemics or natural disasters, or could be terminated. A sustained supply interruption could have an adverse effect on business.

h. Valuation Risk:

The price that the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund's valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lower than expected gain upon the sale of the investment. The Fund's ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

i. Venture Capital Investments Risk:

The Fund may occasionally invest in venture capital opportunities. While these securities offer the opportunity for significant capital gains, such investments also involve a degree of risk that can result in substantial losses. Some of the venture capital opportunities in which the Fund may invest are expected to be companies that are in a “start-up” stage of development, have little or no operating history, operate at a loss or with substantial variations in operating results

from period to period, have limited products, markets, financial resources or management depth, or have the need for substantial additional “follow-on” capital to support expansion or to achieve or maintain a competitive position. Such additional investments may dilute the interests of prior investors, such as the Fund. Some of these companies may be emerging companies at the research and development stage with no marketable or approved products or technology. There can be no assurance that securities of start-up or emerging growth companies will, in the future, yield returns commensurate with their associated risks.

These investments, which are considered Restricted Securities, will be made primarily in convertible preferred stock. The Fund may also purchase non-convertible debt securities in connection with its venture capital investments, and otherwise when the Investment Adviser believes that such investments would be consistent with the Fund’s investment objective. While these debt investments typically will not be rated, the Investment Adviser believes that, in light of the risk characteristics associated with investments in emerging growth companies, if such investments were to be compared with investments rated by S&P or Moody’s, they may be rated as low as “C” in the rating categories established by S&P and Moody’s. Such securities are commonly referred to as “junk bonds” and are considered, on balance, as predominantly speculative.

10. Contingencies

In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund, and therefore, cannot be estimated; however, the Fund expects the risk of loss from such claims to be remote.

11. Tax Information

The U.S. federal income tax basis of the Fund's investments (including derivatives, if applicable) and the net unrealized appreciation as of March 31, 2025, were as follows:

Tax Cost of Securities	Unrealized Appreciation	Unrealized Depreciation	Net Unrealized Appreciation/ (Depreciation)
$936,224,700	$205,386,814	$(173,255,947)	$32,130,867

12. Segment Reporting

In this reporting period, the Fund adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”). Adoption of the new standard impacted disclosures only and did not affect the Fund’s financial position nor the results of its operations. Operating segments are components of a public entity that engage in business activities

from which it may recognize revenues and incur expenses, have discrete financial information available, and have their operating results regularly reviewed by the public entity’s chief operating decision maker (“CODM”) when assessing segment performance and making decisions about segment resources. The Chief Financial Officer of the Fund acts as the Fund’s CODM. The

28	abrdn Healthcare Investors

Notes to Financial Statements (unaudited) (concluded)
March 31, 2025

CODM monitors the operating results of the Fund as a whole, and the Fund’s asset allocation is managed in accordance with its Prospectus. The Fund operates as a single operating and reporting segment pursuant to its investment objective and principal investment strategy. The Fund’s portfolio composition, total returns, expense ratios and changes in net assets used by the CODM to assess segment performance and make resource allocations are consistent with the information presented within the Fund's financial statements. Segment assets are reflected on the Fund’s Statement of Assets and Liabilities as “Total Assets” and significant segment expenses are listed on the Statement of Operations.

13. Subsequent Events

Based on this evaluation, no disclosures and/or adjustments were required to the financial statements as of March 31, 2025, other than as noted below.

On May 9, 2025, the Fund announced that it will pay on June 30, 2025, a stock distribution of US $0.54 per share to all shareholders of record as of May 22, 2025.

abrdn Healthcare Investors

Dividend Reinvestment and Optional Cash Purchase Plan (Unaudited)

The Fund intends to distribute to shareholders substantially all of its net investment income and to distribute any net realized capital gains at least annually. Net investment income for this purpose is income other than net realized long-term and short-term capital gains net of expenses. Pursuant to the Dividend Reinvestment and Optional Cash Purchase Plan (the “Plan”), shareholders whose shares of common stock are registered in their own names will be deemed to have elected to have all distributions automatically reinvested by Computershare Trust Company N.A. (the “Plan Agent”) in the Fund shares pursuant to the Plan, unless such shareholders elect to receive distributions in cash. Shareholders who elect to receive distributions in cash will receive such distributions paid by check in U.S. Dollars mailed directly to the shareholder by the Plan Agent, as dividend paying agent. In the case of shareholders such as banks, brokers or nominees that hold shares for others who are beneficial owners, the Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by the shareholders as representing the total amount registered in such shareholders’ names and held for the account of beneficial owners that have not elected to receive distributions in cash. Investors that own shares registered in the name of a bank, broker or other nominee should consult with such nominee as to participation in the Plan through such nominee and may be required to have their shares registered in their own names in order to participate in the Plan. Please note that the Fund does not issue certificates so all shares will be registered in book entry form. The Plan Agent serves as agent for the shareholders in administering the Plan. If the Trustees of the Fund declare an income dividend or a capital gains distribution payable either in the Fund’s common stock or in cash, nonpa

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