NPORT-EX 2 NPORT_TN00_45487263_1221.htm

Tekla Healthcare Investors

SCHEDULE OF INVESTMENTS

December 31, 2021

(Unaudited) 

SHARES				CONVERTIBLE PREFERRED (Restricted)(a) (b) – 5.7% of Net Assets		VALUE
				Biotechnology – 3.6%
	326,667			Amphivena Therapeutics, Inc. Series B, 6.00% (c)		$	33
	525,972			Amphivena Therapeutics, Inc. Series C, 6.00% (c)			53
	82,076			Arbor Biotechnologies, Series B, 8.00%			1,359,999
	2,353,932			Arkuda Therapeutics, Inc. Series A, 6.00% (c)			2,800,002
	602,572			Dynacure Series C (d)			5,692,523
	2,875,000			Hotspot Therapeutics, Inc. Series B, 6.00%			9,317,587
	632,394			HotSpot Therapeutics, Inc. Series C, 6.00%			2,049,526
	1,020,000			ImmuneID, Inc. Series A, 8.00%			2,040,000
	7,187,500			Invetx, Inc. Series A (c)			3,450,000
	277,444			Oculis SA, Series B2, 6.00% (d)			2,952,004
	75,367			Oculis SA, Series C, 6.00% (d)			801,905
	528,339			Parthenon Therapeutics, Inc. Series A			2,092,307
	346,666			Priothera Ltd. Series A, 6.00% (c)			3,946,791
	981,241			Quell Therapeutics, Series B (d)			1,854,545
	147,295			ReCode Therapeutics, Series B, 5.00%			1,360,004
							39,717,279
				Health Care Equipment & Supplies – 0.1%
	421,634			IO Light Holdings, Inc. Series A2			1,423,015
				Pharmaceuticals  – 2.0%
	616,645			Aristea Therapeutics, Inc. Series B, 8.00%			3,399,996
	1,295,238			Biotheryx, Inc. Series E, 8.00%			6,800,000
	17,547,740			Curasen Therapeutics, Inc. Series A (c)			8,414,141
	2,773,472			HiberCell, Inc. Series B			3,399,999
							22,014,136
				TOTAL CONVERTIBLE PREFERRED                                                                                                     (Cost $73,834,872)			63,154,430

PRINCIPAL AMOUNT				CONVERTIBLE NOTES (Restricted)(a)(b)(c) – 0.0%
				Biotechnology – 0.0%
$	303,323			Amphivena Therapeutics, Inc., 8.00%			0
				TOTAL CONVERTIBLE NOTES                                                                                                     (Cost $303,323)			0

SHARES				COMMON STOCKS AND WARRANTS - 91.4% of Net Assets
				Biotechnology – 52.8%
	66,802			AbbVie, Inc.			9,044,991
	367,414			Affimed N.V. (a)(d)			2,028,125
	90,398			Alkermes plc (a)			2,102,657
	123,013			Alnylam Pharmaceuticals, Inc. (a)			20,860,545
	323,595			Amgen, Inc.			72,799,167
	129,695			Apellis Pharmaceuticals, Inc. (a)			6,131,980
	86,869			Arcutis Biotherapeutics, Inc. (a)			1,801,663
	106,915			Arena Pharmaceuticals, Inc. (a)			9,936,680
	21,958			Argenx SE ADR (a)			7,689,472

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

Tekla Healthcare Investors

SCHEDULE OF INVESTMENTS

December 31, 2021

(Unaudited, continued)

SHARES				Biotechnology – continued		VALUE
	87,937			Arrowhead Pharmaceuticals, Inc. (a)		$	5,830,223
	43,409			Ascendis Pharma A/S ADR (a)			5,839,813
	37,582			BeiGene Ltd. ADR (a)			10,182,091
	66,310			Biogen, Inc. (a)			15,909,095
	28,433			Biohaven Pharmaceutical Holding Co., Ltd. (a)			3,918,352
	71,154			BioMarin Pharmaceutical, Inc. (a)			6,286,456
	57,580			BioNTech SE ADR (a)			14,844,124
	90,404			Black Diamond Therapeutics, Inc. (a)(e)			481,853
	305,576			Caribou Biosciences, Inc.  (Restricted) (a)(b)			4,150,028
	170,000			Caribou Biosciences, Inc. (a)			2,565,300
	51,708			ChemoCentryx, Inc. (a)			1,882,688
	143,592			Denali Therapeutics, Inc. (a)			6,404,203
	43,739			Fate Therapeutics, Inc. (a)			2,559,169
	15,186			Fusion Pharmaceuticals, Inc. (a)(d)			63,326
	200,492			G1 Therapeutics, Inc. (a)(e)			2,047,023
	296,462			Galera Therapeutics, Inc. (a)(e)			1,360,761
	854,746			Gilead Sciences, Inc.			62,063,107
	53,885			I-Mab ADR (a)			2,553,610
	36,800			Intellia Therapeutics, Inc. (a)			4,351,232
	33,437			Intercept Pharmaceuticals, Inc. (a)(e)			544,689
	112,999			Ionis Pharmaceuticals, Inc. (a)			3,438,560
	67,254			Karuna Therapeutics, Inc. (a)			8,810,274
	1,063,799			Mereo Biopharma Group plc ADR (a)			1,702,078
	300,836			Moderna, Inc. (a)(f)			76,406,327
	81,617			Neurocrine Biosciences, Inc. (a)			6,951,320
	2,970			NexGel, Inc. (a)			7,752
	37,188			Novavax, Inc. (a)(e)			5,320,487
	51,406			Praxis Precision Medicines, Inc. (a)			1,012,698
	154,807			Precision BioSciences, Inc. (a)			1,145,572
	389,846			Pyxis Oncology, Inc. (Restricted) (a) (b)			3,848,950
	91,800			Pyxis Oncology, Inc. (a)			1,007,046
	282,694			Rallybio Corp. (a)(e)			2,696,901
	779,418			Rallybio Corp. (Restricted) (a)(b)			6,692,083
	78,356			Regeneron Pharmaceuticals, Inc. (a)			49,483,381
	146,483			Sarepta Therapeutics, Inc. (a)			13,190,794
	68,117			Scholar Rock Holding Corp. (a)			1,692,026
	237,823			Seagen, Inc. (a)			36,767,436
	231,299			Sutro Biopharma, Inc. (a)			3,441,729
	142,714			Travere Therapeutics, Inc. (a)			4,429,843
	138,057			TScan Therapeutics, Inc. (a)			621,257
	80,403			Ultragenyx Pharmaceutical, Inc. (a)			6,761,088
	357,080			uniQure N.V. (a)(d)			7,405,839
	65,800			United Therapeutics Corp. (a)			14,218,064
	567,550			Vectivbio Holding AG (a)			2,786,670
	177,475			Vertex Pharmaceuticals, Inc. (a)			38,973,510
	27,684			Zai Lab Ltd. ADR (a)			1,739,939
							586,784,047
				Health Care Equipment & Supplies  – 7.2%
	106,073			Abbott Laboratories			14,928,714

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

Tekla Healthcare Investors

SCHEDULE OF INVESTMENTS

December 31, 2021

(Unaudited, continued)

SHARES				Health Care Equipment & Supplies  – continued		VALUE
	160,000			Cercacor Laboratories, Inc. (Restricted) (a)(b)		$	1,550,985
	3,880			DexCom, Inc. (a)			2,083,366
	43,827			Edwards Lifesciences Corp. (a)			5,677,788
	173,673			Guardant Health, Inc. (a)			17,370,773
	10,945			Hologic, Inc. (a)			837,949
	21,513			IDEXX Laboratories, Inc. (a)			14,165,450
	36,792			Medtronic plc			3,806,132
	55,019			Stryker Corp.			14,713,181
	39,439			Zimmer Biomet Holdings, Inc.			5,010,331
							80,144,669
				Health Care Providers & Services – 6.0%
	17,832			Addus HomeCare Corp. (a)			1,667,470
	29,482			AMN Healthcare Services, Inc. (a)			3,606,533
	2,644			Anthem, Inc.			1,225,600
	18,681			Charles River Laboratories International, Inc. (a)			7,038,627
	41,860			Cigna Corp.			9,612,312
	34,995			HCA Healthcare, Inc.			8,990,916
	6,740			Humana, Inc.			3,126,416
	222,222			InnovaCare, Inc. Escrow Shares (Restricted) (a)(b)			139,711
	13,049			Medpace Holdings, Inc. (a)			2,839,984
	20,567			Molina Healthcare, Inc. (a)			6,541,951
	107,595			Owens & Minor, Inc.			4,680,383
	33,507			UnitedHealth Group, Inc.			16,825,205
							66,295,108
				Healthcare Services (a)– 2.1%
	15,929			Laboratory Corporation of America Holdings			5,005,051
	173,530			Syneos Health, Inc.			17,818,061
							22,823,112
				Life Sciences Tools & Services – 8.2%
	216,209			Adaptive Biotechnologies Corp. (a)			6,066,824
	35,350			ICON plc (a)(e)			10,947,895
	126,722			Illumina, Inc. (a)			48,210,118
	10,514			PerkinElmer, Inc.			2,113,945
	31,571			Thermo Fisher Scientific, Inc.			21,065,434
	8,360			Waters Corp. (a)			3,114,936
							91,519,152
				Medical Devices and Diagnostics – 1.3%
	126,126			Boston Scientific Corp. (a)			5,357,832
	24,181			Danaher Corp.			7,955,791
	3,402			Intuitive Surgical, Inc. (a)			1,222,339
							14,535,962
				Pharmaceuticals – 13.6%
	51,378			Arvinas, Inc. (a)			4,220,189
	160,160			AstraZeneca plc ADR			9,329,320
	104,219			Aurinia Pharmaceuticals, Inc. (a)(d)(e)			2,383,489
	153,223			Bristol-Myers Squibb Co.			9,553,454

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

Tekla Healthcare Investors

SCHEDULE OF INVESTMENTS

December 31, 2021

(Unaudited, continued)

SHARES				Pharmaceuticals – continued		VALUE
	37,913			Eli Lilly & Co.		$	10,472,329
	465,507			Endo International plc (a)(d)			1,750,306
	432,599			Horizon Therapeutics plc (a)			46,616,868
	134,848			Intra-Cellular Therapies, Inc. (a)			7,057,944
	22,510			IQVIA Holdings, Inc. (a)			6,350,971
	42,253			Jazz Pharmaceuticals plc (a)(d)			5,383,032
	36,231			Johnson & Johnson			6,198,037
	48,115			McKesson Corp.			11,959,946
	71,668			Merck & Co., Inc.			5,492,636
	55,093			Mirati Therapeutics, Inc. (a)			8,081,592
	7,050			Perrigo Co. plc			274,245
	60,450			Pfizer, Inc.			3,569,572
	79,790			Spectrum Pharmaceuticals, Inc. (a)			101,333
	28,747			Tetraphase Pharmaceuticals, Inc. CVR (a)(b)			1,725
	291,666			Teva Pharmaceutical Industries Ltd. ADR (a)			2,336,245
	452,402			Theravance Biopharma, Inc. (a)(d)			4,999,042
	69,000			Theseus Pharmaceuticals, Inc. (a)(e)			874,920
	94,775			VYNE Therapeutics, Inc. (a)(e)			96,671
	12,377			Zoetis, Inc.			3,020,359
	51,696			Zogenix, Inc. (a)			840,060
							150,964,285
				Special Purpose Acquisition Company (a)– 0.2%
	171,597			Helix Acquisition Corp.			1,697,094
				TOTAL COMMON STOCKS AND WARRANTS                                                                                                     (Cost $721,490,519)			1,014,763,429

PRINCIPAL AMOUNT				SHORT-TERM INVESTMENTS - 1.4% of Net Assets
$	3,670,000			Repurchase Agreement, Fixed Income Clearing Corp., repurchase value $3,670,000, 0.00%, dated 12/31/21, due 01/03/22 (collateralized by U.S. Treasury Note 1.38%, due 12/31/28, market value $3,743,432)			3,670,000

SHARES
	11,734,255			State Street Institutional U.S. Government Money Market Fund, Institutional Class, 0.03%  (g)			11,734,255
				TOTAL SHORT-TERM INVESTMENTS                                                                                                     (Cost $15,404,255)			15,404,255
				TOTAL INVESTMENTS BEFORE MILESTONE INTERESTS - 98.5% (Cost $811,032,969)			1,093,322,114
INTERESTS				MILESTONE INTERESTS (Restricted)(a)(b) - 1.0% of Net Assets
				Biotechnology – 0.2%
	1			Rainier Therapeutics Milestone Interest			426,856
	1			Therachon Milestone Interest			1,355,671
							1,782,527

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

Tekla Healthcare Investors

SCHEDULE OF INVESTMENTS

December 31, 2021

(Unaudited, continued)

INTERESTS				Health Care Equipment & Supplies – 0.0%		VALUE
	1			Therox Milestone Interest		$	1,982
				Pharmaceuticals – 0.8%
	1			Afferent Milestone Interest			738,018
	1			Ethismos Research Milestone Interest			0
	1			Impact Biomedicines Milestone Interest			2,370,355
	1			Neurovance Milestone Interest			6,132,136
							9,240,509
				TOTAL MILESTONE INTERESTS (Cost $8,061,450)			11,025,018

NUMBER OF CONTRACTS (100 SHARES EACH)/ NOTIONAL AMOUNT ($)				PUT OPTION CONTRACTS PURCHASED   - 1.7% of Net Assets
	610/24,400,000			Moderna, Inc. Jan22 400 Put			9,009,700
	736/27,968,000			Moderna, Inc. Jan22 380 Put			9,077,824
	156/4,056,000			Moderna, Inc. Jan22 260 Put			305,292
				TOTAL PUT OPTION CONTRACTS PURCHASED  (Premiums paid $8,511,879)			18,392,816

NUMBER OF CONTRACTS (100 SHARES EACH)/ NOTIONAL AMOUNT($)				CALL OPTION CONTRACTS WRITTEN - 0.0% of Net Assets
	610/(29,280,000	)		Moderna, Inc. Jan22 480 Call			(4,270	)
	736/(33,856,000	)		Moderna, Inc. Jan22 460 Call			(5,888	)
	156/(4,992,000	)		Moderna, Inc. Jan22 320 Call			(32,760	)
				TOTAL CALL OPTION CONTRACTS WRITTEN                                                                                                     (Premiums received $(7,619,045))			(42,918	)
				TOTAL INVESTMENTS - 101.2% (Cost $819,987,253)			1,122,697,030
				OTHER LIABILITIES IN EXCESS OF ASSETS - (1.2)%			(12,769,008	)
				NET ASSETS - 100%		$	1,109,928,022

(a)	Non-income producing security.
(b)	Security fair valued using significant unobservable inputs. See Investment Valuation and Fair Value Measurements.
(c)	Affiliated issuers in which the Fund holds 5% or more of the voting securities (total market value of $18,611,020).
(d)	Foreign security.
(e)	All or a portion of this security is on loan as of December 31, 2021.
(f)	A portion of security is pledged as collateral for call options written.
(g)	This security represents the investment of cash collateral received for securities lending and is a registered investment company advised by State Street Global Advisors. The rate shown is the annualized seven-day yield as of  December 31, 2021.
ADR	American Depository Receipt
CVR	Contingent Value Right

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

Tekla hEALTHCARE Investors 

NOTES TO SCHEDULE OF INVESTMENTS 

December 31, 2021 

(unaudited)

Investment Valuation

Shares of publicly traded companies listed on national securities exchanges or trading in the over-the-counter market are typically valued at the last sale price, as of the close of trading, generally 4 p.m., Eastern Time. The Board of Trustees of the Fund (the Trustees) has established and approved fair valuation policies and procedures with respect to securities for which quoted prices may not be available or which do not reflect fair value. Convertible, corporate and government bonds are valued using a third-party pricing service. Convertible bonds are valued using this pricing service only on days when there is no sale reported. Restricted securities of companies that are publicly traded are typically valued based on the closing market quote on the valuation date adjusted for the impact of the restriction as determined in good faith by Tekla Capital Management LLC (the Adviser) also using fair valuation policies and procedures approved by the Trustees described below. Non-exchange traded warrants of publicly traded companies are generally valued using the Black-Scholes model, which incorporates both observable and unobservable inputs. Short-term investments with a maturity of 60 days or less are generally valued at amortized cost, which approximates fair value.

Convertible preferred shares, warrants or convertible note interests in private companies, milestone interests and other restricted securities, as well as shares of publicly traded companies for which market quotations are not readily available, such as stocks for which trading has been halted or for which there are no current day sales, or which do not reflect fair value, are typically valued in good faith, based upon the recommendations made by the Adviser pursuant to fair valuation policies and procedures approved by the Trustees.

The Adviser has a Valuation Sub-Committee comprised of senior management which reports to the Valuation Committee of the Board at least quarterly. Each fair value determination is based on a consideration of relevant factors, including both observable and unobservable inputs. Observable and unobservable inputs the Adviser considers 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 identified by the Adviser 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. Due to the uncertainty inherent in the valuation process, such estimates of fair value may differ significantly from the values that would have been used had a ready market for the investments existed, and differences could be material. 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 this schedule of investments.

Federal Income Tax Cost

At December 31, 2021, the cost of securities for Federal income tax purposes was $819,987,253. The net unrealized gain on securities held by the Fund was $302,709,777, including gross unrealized gain of $375,911,353 and gross unrealized loss of $73,201,576.

Securities Lending

The Fund may lend its securities to approved borrowers to earn additional income. The Fund receives cash collateral from the borrower in an amount not less than the market value of the loaned securities. The Fund will invest its cash collateral in State Street Institutional U.S. Government Money Market Fund (SAHXX), which is registered with the Securities and Exchange Commission (SEC) as an investment company. SAHXX invests substantially all of its assets in the State Street U.S. Government Money Market Portfolio. The Fund will receive the benefit of any gains and bear any losses generated by SAHXX with respect to the cash collateral.

The Fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the Fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of SAHXX.

Tekla hEALTHCARE Investors 

NOTES TO SCHEDULE OF INVESTMENTS 

December 31, 2021 

(Unaudited, continued)

Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the Fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The Fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the Fund is net of fees retained by the securities lending agent. Net income received from SAHXX is a component of securities lending income as recorded by the Fund.

As of December 31, 2021, the Fund loaned securities valued at $10,984,619 and received $11,734,255 of cash collateral.

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 period ended December 31, 2021 were as follows:

Affiliated Companies		Beginning Value as of September 30, 2021				Purchases at Cost				Proceeds from Sales				Net Realized Gain/(Loss) on sale of Affiliated Companies				Change in Unrealized Appreciation/ Depreciation				Ending Value as of December 31, 2021
Amphivena Therapeutics, Inc.		$	86			$	-			$	-			$	-			$	-			$	86
Arkuda Therapeutics, Inc.			2,800,002				-				-				-				-				2,800,002
Curasen Therapeutics, Inc.			7,000,000				1,414,141				-				-				-				8,414,141
Invetx, Inc.			3,450,000				-				-				-				-				3,450,000
Priothera Ltd.			1,081,123	*			2,946,771				-				-				(81,103	)			3,946,791
		$	14,331,211			$	4,360,912			$	-			$	-			$	(81,103	)		$	18,611,020

Affiliated Companies		Shares as of December 31, 2021				Principal Amount as of December 31, 2021				Dividend/ Interest Income from Affiliated Companies				Capital Gain Distributions from Affiliated Companies
Amphivena Therapeutics, Inc.			852,639			$	303,323			$	-			$	-
Arkuda Therapeutics, Inc.			2,353,932				-				-				-
Curasen Therapeutics, Inc.			17,547,740
Invetx, Inc.			7,187,500				-				-				-
Priothera Ltd.			346,666				-				-				-
			28,288,477			$	303,323			$	-			$	-

* Not an affiliate as of September 30, 2021.

Fair Value Measurements

The Fund uses a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels. Level 1 includes quoted prices in active markets for identical investments. Level 2 includes prices determined using other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.). The independent pricing vendor may value bank loans and debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, and/or other methodologies designed to identify the market value for such securities and such securities are considered Level 2 in the fair value hierarchy. Level 3 includes prices determined using significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). These inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Tekla hEALTHCARE Investors 

NOTES TO SCHEDULE OF INVESTMENTS 

December 31, 2021 

(Unaudited, continued)

For the period ended December 31, 2021, the total amount of transfers between Level 3 and Level 1 was $322. The investment was transferred due to an initial public offering and the value is being supported by the market price and transfers between Level 3 and Level 2 was $4,079,999. The investment was transferred due to an initial public offering lockup period and the value is being supported by significant observable inputs. There were no other transfers between levels.

The following is a summary of the levels used as of December 31, 2021 to value the Fund’s investments.

Assets at Value		Level 1				Level 2				Level 3				Total
Convertible Preferred
Biotechnology		$	-			$	-			$	39,717,279			$	39,717,279
Health Care Equipment & Supplies			-				-				1,423,015				1,423,015
Pharmaceuticals			-				-				22,014,136				22,014,136
Convertible Notes
Biotechnology			-				-				0				0
Common Stocks and Warrants
Biotechnology			572,092,986				14,691,061				-				586,784,047
Health Care Equipment & Supplies			78,593,684				-				1,550,985				80,144,669
Health Care Providers & Services			66,155,397				-				139,711				66,295,108
Healthcare Services			22,823,112				-				-				22,823,112
Life Sciences Tools & Services			91,519,152				-				-				91,519,152
Medical Devices And Diagnostics			14,535,962				-				-				14,535,962
Pharmaceuticals			150,962,560				1,725				-				150,964,285
Special Purpose Acquisition Company			1,697,094				-				-				1,697,094
Short-term Investments			11,734,255				3,670,000				-				15,404,255
Milestone Interests
Biotechnology			-				-				1,782,527				1,782,527
Health Care Equipment & Supplies			-				-				1,982				1,982
Pharmaceuticals			-				-				9,240,509				9,240,509
Other Assets			-				-				5,166				5,166
Total		$	1,010,114,202			$	18,362,786			$	75,875,310			$	1,104,352,298
Other Financial Instruments
Assets
Put Options Contracts Purchased		$	18,392,816			$	-			$	-			$	18,392,816
Liabilities
Call Options Contracts Written			(42,918	)			-				-				(42,918	)
Total		$	18,349,898			$	-			$	-			$	18,349,898

Tekla hEALTHCARE Investors 

NOTES TO SCHEDULE OF INVESTMENTS 

December 31, 2021 

(Unaudited, continued)

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

Investments in Securities		Balance as of September 30, 2021				Net realized gain (loss) and change in unrealized appreciation (depreciation)				Cost of purchases and conversions				Proceeds from sales and conversions				Net transfers in (out of) Level 3				Balance as of December 31, 2021
Convertible Preferred
Biotechnology		$	31,989,201			$	2,209,146			$	9,598,931				-			$	(4,079,999	)		$	39,717,279
Health Care Equipment & Supplies			1,423,015				-				-				-				-				1,423,015
Pharmaceuticals			20,599,995				(133	)			1,414,274				-				-				22,014,136
Convertible Notes
Biotechnology			0				-				-				-				-				0
Common Stock
Biotechnology			322				-				-				-				(322	)			-
Health Care Equipment & Supplies			1,768,200				(217,215	)			-				-				-				1,550,985
Health Care Providers & Services			139,911				(200	)			-				-				-				139,711
Milestone Interests
Biotechnology			1,758,375				24,152				-				-				-				1,782,527
Health Care Equipment & Supplies			1,982				-				-				-				-				1,982
Pharmaceuticals			9,289,198				(48,689	)			-				-				-				9,240,509
Other Assets			15,966				-				-				(10,800	)			-				5,166
		$	66,986,165			$	1,967,061			$	11,013,205			$	(10,800	)		$	(4,080,321	)		$	75,875,310

Net change in unrealized appreciation (depreciation) from investments still held as of December 31, 2021 $ 1,967,061

The following is a quantitative disclosure about significant unobservable inputs used in the determination of the fair value of Level 3 assets.

		Fair Value at December 31, 2021				Valuation Technique		Unobservable Input		Range (Weighted Average)
Common Stock		$	1,550,985			Income approach		(a)		N/A
			139,711			Probability adjusted value		Probability of events Timing of events		20.00% (20.00%) 0.25 - 2.25 (1.25) years
Convertible Preferred			40,847,580			Market approach		(a)		N/A
			22,306,850			Recent transactions		(b)		N/A
Milestones Interests			11,025,018			Probability adjusted value		Probability of events Timing of events		10.00%- 100.00% (73.33%) 0.50 - 15.25 (4.14) years
Other Assets			5,166			Probability adjusted value		Probability of events Timing of events		80.00%- 95.00% (80.79%) 0.25 - 6.00 (0.55) years
		$	75,875,310

(a) There is no quantitative information to provide as these methods of measure are investment specific.

(b) The valuation technique used as a basis to approximate fair value of these investments is based upon subsequent financing rounds.

Tekla hEALTHCARE Investors 

NOTES TO SCHEDULE OF INVESTMENTS 

December 31, 2021 

(Unaudited, continued)

Private Companies and Other Restricted Securities

The Fund may invest in private companies and other restricted securities if these securities would currently comprise 40% or less of net assets. The value of these securities represented 8% of the Fund’s net assets at December 31, 2021.

At December 31, 2021, the Fund had a commitment of $6,873,813 relating to additional investments in five 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 December 31, 2021. The Fund on its own does not have the right to demand that such securities be registered.

Security (#)		Acquisition Date		Cost				Carrying Value per Unit				Value
Afferent Milestone Interest		07/27/16		$	377,701			$	738,018.00			$	738,018
Amphivena Therapeutics, Inc.
Series B Cvt. Pfd		07/17/17			4,902,917				0.00	††			33
Series C Cvt. Pfd		12/10/18			1,887,420				0.00	††			53
Cvt. Note		08/25/21			303,323				0.00				0
Arbor Biotechnologies, Series B Cvt. Pfd		10/29/21			1,359,999				16.57				1,359,999
Aristea Therapeutics, Inc. Series B Cvt. Pfd		07/27/21			3,399,996				5.51				3,399,996
Arkuda Therapeutics, Inc. Series A Cvt. Pfd		05/16/19,04/02/20,07/15/21			5,600,004				1.19				2,800,002
Biotheryx, Inc. Series E Cvt. Pfd		05/19/21			6,809,590				5.25				6,800,000
Caribou Biosciences, Inc. Common		03/01/21			2,906,735				13.58				4,150,028
Cercacor Laboratories, Inc. Common		03/31/98	†		0				9.69				1,550,985
Curasen Therapeutics, Inc. Series A Cvt. Pfd		09/18/18, 01/07/20 10/21/21			8,414,141				0.48				8,414,141
Dynacure Series C Cvt. Pfd		04/21/20,10/28/20			5,611,822				9.45				5,692,523
Ethismos Research Milestone Interest		10/31/17			0				0.00				0
HiberCell, Inc. Series B Cvt. Pfd		05/05/21			3,406,945				1.23				3,399,999
Hotspot Therapeutics, Inc.
Series B Cvt. Pfd		04/22/20, 06/17/21			6,903,492				3.24				9,317,587
Series C Cvt. Pfd		11/15/21			2,050,294				3.24				2,049,526
ImmuneID, Inc. Series A, Cvt. Pfd		04/28/21			2,044,520				2.00				2,040,000
Impact Biomedicines Milestone Interest		07/20/10			0				2,370,355.00				2,370,355
InnovaCare, Inc. Escrow Shares Common		12/21/12	†		96,109				0.63				139,711
Invetx, Inc. Series A Cvt. Pfd		08/06/20			3,450,000				0.48				3,450,000
IO Light Holdings, Inc. Series A2 Cvt. Pfd		04/30/20	†		1,394,759				3.38				1,423,015
Neurovance Milestone Interest		03/20/17			4,917,880				6,132,136.00				6,132,136
Oculis SA
Series B2 Cvt. Pfd		01/16/19			2,335,688				10.64				2,952,004
Series C Cvt. Pfd		04/07/21			801,905				10.64				801,905
Parthenon Therapeutics, Inc. Series A Cvt. Pfd		08/12/21			2,092,307				3.96				2,092,307
Priothera Ltd. Series A Cvt. Pfd		10/07/20,10/19/21			4,044,974				11.39				3,946,791
Pyxis Oncology, Inc. Common		03/05/21			4,085,725				9.87				3,848,950
Quell Therapeutics, Series B Cvt. Pfd		11/29/21			1,871,828				1.89				1,854,545
Rainier Therapeutics Milestone Interest		09/28/21			395,493				426,856.00				426,856
Rallybio Corp. Common		03/27/20			6,913,546				8.59				6,692,083
ReCode Therapeutics, Series B Cvt. Pfd		10/12/21			1,366,546				9.23				1,360,004
Therachon Milestone Interest		07/01/19			2,362,765				1,355,671.00				1,355,671
Therox Milestone Interest		06/18/19			7,611				1,982.00				1,982
				$	92,116,035							$	90,561,205

(#) See Schedule of Investments and corresponding footnotes for more information on each issuer.

†    Interest received as part of a corporate action for a previously owned security.

†† Carrying value per unit is greater than $0.00 but less than $0.01