NPORT-EX 2 NPORT_TN02_1047222434.htm

Tekla World Healthcare Fund 

SCHEDULE OF INVESTMENTS 

June 30, 2021

(Unaudited)

PRINCIPAL AMOUNT						VALUE
				NON-CONVERTIBLE NOTES - 13.5% of Net Assets
				France – 0.5%
$	2,600,000			Sanofi, 3.63% due 06/19/28		$	2,966,062
				Ireland – 0.5%
	516,000			Endo Dac/Endo Finance LLC/Endo Finco, Inc., 9.50% due 07/31/27 (a)			526,320
	789,000			Endo Dac/Endo Finance LLC/Endo Finco, Inc., 6.00% due 06/30/28 (a)			532,066
	1,500,000			Shire Acquisitions Investments Ireland DAC, 3.20% due 09/23/26			1,629,030
							2,687,416
				United Kingdom – 0.9%
	5,000,000			AstraZeneca plc, 3.38% due 11/16/25			5,472,017
				United States – 11.6%
	3,200,000			AbbVie, Inc., 4.50% due 05/14/35			3,850,958
	1,400,000			Allergan Sales LLC, 5.00% due 12/15/21 (a)			1,413,447
	2,000,000			Amgen, Inc., 3.63% due 05/22/24			2,153,214
	831,000			Baxalta, Inc., 4.00% due 06/23/25			917,620
	1,200,000			Becton, Dickinson and Co., 3.73% due 12/15/24			1,306,844
	560,000			Biogen, Inc., 3.63% due 09/15/22			581,764
	1,400,000			Bristol-Myers Squibb Co., 3.40% due 07/26/29			1,568,087
	2,785,000			Cigna Corp., 3.50% due 06/15/24			2,986,216
	191,000			CVS Health Corp., 3.70% due 03/09/23			201,129
	4,000,000			EMD Finance LLC, 3.25% due 03/19/25 (a)			4,295,111
	2,000,000			GlaxoSmithKline Capital, Inc., 2.80% due 03/18/23			2,082,939
	1,400,000			GlaxoSmithKline Capital plc, 3.00% due 06/01/24			1,491,774
	1,000,000			GlaxoSmithKline Capital plc, 3.38% due 06/01/29			1,111,742
	1,000,000			HCA, Inc., 5.88% due 05/01/23			1,086,700
	1,250,000			HCA, Inc., 5.38% due 02/01/25			1,410,000
	600,000			HCA, Inc., 5.25% due 04/15/25			686,671
	4,300,000			Johnson & Johnson, 2.45% due 03/01/26			4,585,576
	1,400,000			Johnson & Johnson, 2.90% due 01/15/28			1,530,971
	1,400,000			Laboratory Corporation of America Holdings, 3.60% due 02/01/25			1,514,877
	4,000,000			Mallinckrodt International Finance S.A./Mallinckrodt CB LLC, 5.50% due 04/15/25 (a)			2,780,000
	1,200,000			McKesson Corp., 3.80% due 03/15/24			1,290,646
	1,675,000			Medtronic, Inc., 4.38% due 03/15/35			2,086,821
	1,400,000			Merck & Co., Inc., 2.80% due 05/18/23			1,465,439
	1,463,000			Merck & Co., Inc., 2.75% due 02/10/25			1,559,083
	2,115,000			Novartis Capital Corp., 3.40% due 05/06/24			2,280,294
	193,000			Par Pharmaceutical, Inc., 7.50% due 04/01/27 (a)			197,343
	5,300,000			Pfizer, Inc., 3.45% due 03/15/29			5,967,091
	1,750,000			Senior Housing Properties Trust, 4.75% due 05/01/24			1,793,750
	1,500,000			Tenet Healthcare Corp., 6.75% due 06/15/23			1,636,875
	1,400,000			Thermo Fisher Scientific, Inc., 3.20% due 08/15/27			1,529,538
	1,400,000			UnitedHealth Group, Inc., 2.88% due 12/15/21			1,417,284
	2,560,000			UnitedHealth Group, Inc., 3.88% due 12/15/28			2,945,326

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

Tekla World Healthcare Fund 

SCHEDULE OF INVESTMENTS 

June 30, 2021

(Unaudited, continued)

PRINCIPAL AMOUNT						VALUE
				United States – continued
$	5,000,000			Zimmer Biomet Holdings, Inc., 4.25% due 08/15/35		$	5,520,836
							67,245,966
				TOTAL NON-CONVERTIBLE NOTES (Cost $73,505,073)			78,371,461

SHARES
				CONVERTIBLE PREFERRED (Restricted)(b)(c) - 1.1% of Net Assets
				France – 0.6%
	131,952			Dynacure Series C			3,320,125
				Ireland – 0.1%
	52,267			Priothera Ltd. Series A, 6.00%			619,756
				Switzerland – 0.3%
	151,333			Oculis SA, Series B2, 6.00%			1,610,183
	41,109			Oculis SA, Series C, 6.00%			437,400
							2,047,583
				United States – 0.1%
	98,455			IO Light Holdings, Inc. Series A2			340,152
	1,307,690			Rainier Therapeutics, Inc. Series A, 6.00%			131
	757,575			Rainier Therapeutics, Inc. Series B, 6.00%			124,394
							464,677
				TOTAL CONVERTIBLE PREFERRED (Cost $7,223,020)			6,452,141
				COMMON STOCKS AND WARRANTS - 96.9% of Net Assets
				Australia  – 1.4%
	38,719			CSL Ltd.			8,281,153
				China – 1.1%
	5,594			BeiGene Ltd. ADR (c)			1,919,805
	127,000			Everest Medicines Ltd. (a)(c)			1,263,572
	38,848			I-Mab ADR (c)			3,261,289
							6,444,666
				Denmark – 1.0%
	81,867			MorphoSys AG ADR (c)(d)			1,575,940
	48,406			Novo Nordisk A/S ADR			4,054,970
							5,630,910
				France – 0.7%
	81,554			Sanofi ADR			4,294,634
				Germany  – 1.9%
	332,698			Affimed N.V. (c)			2,827,933
	131,684			Bayer AG			7,996,151
							10,824,084

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

Tekla World Healthcare Fund 

SCHEDULE OF INVESTMENTS 

June 30, 2021

(Unaudited, continued)

SHARES						VALUE
				Ireland– 4.7%
	36,963			Endo International plc (c)		$	172,987
	36,357			ICON plc (c)(e)			7,515,356
	32,980			Mallinckrodt plc (c)			9,564
	140,817			Medtronic plc (e)			17,479,614
	15,882			Perrigo Co. plc			728,190
	7,211			STERIS plc			1,487,629
							27,393,340
				Israel – 0.2%
	90,281			Teva Pharmaceutical Industries Ltd. ADR (c)			893,782
				Japan – 3.4%
	88,837			Astellas Pharma, Inc.			1,546,921
	108,150			Daiichi Sankyo Co., Ltd.			2,331,025
	13,660			Eisai Co., Ltd.			1,343,314
	19,364			Hoya Corp.			2,567,458
	14,872			M3, Inc.			1,086,066
	57,880			Olympus Corp.			1,150,358
	22,660			Ono Pharmaceutical Co., Ltd.			505,641
	41,616			Otsuka Holdings Co., Ltd.			1,725,774
	15,413			Shionogi & Co., Ltd			803,427
	7,430			Sysmex Corp.			882,812
	210,146			Takeda Pharmaceutic ADR			3,536,757
	19,200			Takeda Pharmaceuticals Co., Ltd.			642,736
	34,576			Terumo Corp.			1,401,154
							19,523,443
				Netherlands – 1.8%
	14,399			Argenx SE ADR (c)			4,335,107
	56,927			Koninklijke Philips N.V.			2,829,272
	100,918			uniQure N.V. (c)(d)			3,108,274
							10,272,653
				Spain – 0.1%
	47,373			Grifols, S.A. ADR			821,922
				Switzerland – 6.5%
	5,773			Lonza Group AG			4,091,795
	136,225			Novartis AG ADR			12,429,169
	453,086			Roche Holding AG ADR			21,290,511
							37,811,475
				United Kingdom– 5.1%
	364,898			AstraZeneca plc ADR (d)(e)			21,857,390
	107,670			Smith & Nephew plc ADR (e)			4,677,185
	436,105			Verona Pharma plc ADR (c)			2,852,126
	513,192			Verona Pharma plc Warrants (expiration 04/27/22, exercise price $2.86) (b)(c)			1,278
							29,387,979

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

Tekla World Healthcare Fund 

SCHEDULE OF INVESTMENTS 

June 30, 2021

(Unaudited, continued)

SHARES						VALUE
				United States – 69.0%
	10,451			1Life Healthcare, Inc. (c)		$	345,510
	181,604			Abbott Laboratories (e)			21,053,352
	183,726			AbbVie, Inc.			20,694,897
	12,900			Agilent Technologies, Inc.			1,906,749
	15,870			Alexion Pharmaceuticals, Inc. (c)			2,915,478
	3,039			Align Technology, Inc. (c)			1,856,829
	28,276			Amgen, Inc.			6,892,275
	30,649			Anthem, Inc. (e)			11,701,788
	282,002			Ardelyx, Inc. (c)			2,137,575
	62,815			Atreca, Inc. (c)(d)			535,184
	5,100			Becton, Dickinson and Co.			1,240,269
	8,362			Biogen, Inc. (c)(e)			2,895,510
	42,319			Boston Scientific Corp. (c)			1,809,560
	124,748			Bristol-Myers Squibb Co.			8,335,661
	7,053			Celldex Therapeutics, Inc. (c)			235,852
	7,600			Charles River Laboratories International, Inc. (c)(e)			2,811,392
	53,610			Cigna Corp. (e)			12,709,323
	8,700			Community Health Systems, Inc. (c)			134,328
	14,900			Community Healthcare Trust, Inc.			707,154
	30,182			CVS Health Corp.			2,518,386
	39,368			Danaher Corp.			10,564,797
	125,408			DENTSPLY Sirona, Inc. (e)			7,933,310
	20,269			DexCom, Inc. (c)(e)			8,654,863
	63,841			Diversified Healthcare Trust			266,855
	37,128			Edwards Lifesciences Corp. (c)			3,845,347
	65,095			Eli Lilly & Co. (e)			14,940,604
	23,148			Exact Sciences Corp. (c)			2,877,528
	4,325			Five Star Senior Living, Inc. (c)			24,912
	187,532			Galera Therapeutics, Inc. (c)			1,843,440
	71,708			Gilead Sciences, Inc.			4,937,813
	143,229			Global Medical REIT, Inc.			2,114,060
	28,785			HCA Healthcare, Inc. (e)			5,951,011
	92,654			Healthcare Realty Trust, Inc.			2,798,151
	56,913			Healthcare Trust of America, Inc.			1,519,577
	83,601			Healthpeak Properties, Inc.			2,783,077
	4,217			Hologic, Inc. (c)			281,358
	104,670			Horizon Therapeutics plc (c)(e)			9,801,299
	15,846			Humana, Inc. (e)			7,015,341
	5,643			IDEXX Laboratories, Inc. (c)			3,563,837
	8,908			Illumina, Inc. (c)			4,215,355
	11,108			Incyte Corp. (c)			934,516
	6,885			Intuitive Surgical, Inc. (c)			6,331,721
	38,367			Iovance Biotherapeutics, Inc. (c)			998,309
	11,779			IQVIA Holdings, Inc. (c)			2,854,287
	118,873			Johnson & Johnson			19,583,138
	14,680			Laboratory Corporation of America Holdings (c)(e)			4,049,478
	46,903			LTC Properties, Inc.			1,800,606
	40,211			McKesson Corp.			7,689,952
	145,186			Medical Properties Trust, Inc.			2,918,239

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

Tekla World Healthcare Fund 

SCHEDULE OF INVESTMENTS 

June 30, 2021

(Unaudited, continued)

SHARES						VALUE
				United States – continued
	147,710			Merck & Co., Inc.		$	11,487,407
	3,150			Mettler-Toledo International, Inc. (c)			4,363,821
	24,934			Molina Healthcare, Inc. (c)(e)			6,309,798
	4,442			National Health Investors, Inc.			297,836
	1,002			Nektar Therapeutics (c)			17,194
	96,025			New Senior Investment Group, Inc.			843,100
	71,075			Omega Healthcare Investors, Inc.			2,579,312
	14,771			Organon & Co. (c)			446,971
	40,906			Owens & Minor, Inc.			1,731,551
	8,245			PerkinElmer, Inc.			1,273,110
	183,469			Pfizer, Inc.			7,184,646
	168,741			Physicians Realty Trust			3,116,646
	70,097			R1 RCM, Inc. (c)			1,558,957
	7,560			Regeneron Pharmaceuticals, Inc. (c)			4,222,562
	49,324			ResMed, Inc.			12,159,353
	90,781			Sabra Health Care REIT, Inc.			1,652,214
	30,766			Stryker Corp.			7,990,853
	600			Teleflex, Inc.			241,074
	40,047			Thermo Fisher Scientific, Inc. (e)			20,202,510
	89,487			UnitedHealth Group, Inc. (e)			35,834,174
	8,183			Universal Health Realty Income Trust			503,664
	18,957			Universal Health Services, Inc.			2,775,874
	51,692			Ventas, Inc.			2,951,613
	18,786			Vertex Pharmaceuticals, Inc. (c)			3,787,821
	13,745			Waters Corp. (c)(e)			4,750,409
	41,484			Welltower, Inc.			3,447,320
	57,419			Zimmer Biomet Holdings, Inc. (e)			9,234,124
	18,783			Zoetis, Inc.			3,500,400
							400,994,167
				TOTAL COMMON STOCKS AND WARRANTS (Cost $491,819,189)			562,574,208
				EXCHANGE TRADED FUND(d)(e) - 2.1% of Net Assets
	96,849			Health Care Select Sector SPDR Fund			12,198,131
				TOTAL EXCHANGE TRADED FUND (Cost $11,762,669)			12,198,131

PRINCIPAL AMOUNT
				SHORT-TERM INVESTMENTS – 10.6% of Net Assets
$	38,708,000			Repurchase Agreement, Fixed Income Clearing Corp., repurchase value $38,708,000, 0.00%, dated 06/30/21, due 07/01/21 (collateralized by U.S. Treasury Note 1.25% due 06/30/28, market value $39,482,161)			38,708,000

SHARES
	23,053,920			State Street Institutional U.S. Government Money Market Fund, Institutional Class, 0.03% (f)			23,053,920
				TOTAL SHORT-TERM INVESTMENTS (Cost $ 61,761,920)			61,761,920

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

Tekla World Healthcare Fund

SCHEDULE OF INVESTMENTS 

June 30, 2021

(Unaudited, continued)

NUMBER OF CONTRACTS (100 SHARES EACH)/ NOTIONAL AMOUNT ($)		OPTION CONTRACTS WRITTEN - (0.1)% of Net Assets		VALUE
		Call Option Contracts Written - (0.1)%
181/(2,045,300)		Abbott Laboratories Jul21 113 Call		$	(60,635	)
45/(1,732,500)		Anthem, Inc. Jun21 405 Call			(17,100	)
480/(2,880,000)		AstraZeneca plc Jul21 60 Call			(38,400	)
14/(525,000)		Biogen, Inc. Jul21 375 Call			(3,570	)
76/(2,888,000)		Charles River Laboratories International, Inc. Jul21 380 Call			(21,280	)
53/(1,258,750)		Cigna Corp. Jul21 237.5 Call			(20,405	)
62/(403,000)		DENTSPLY Sirona, Inc. Jun21 67.5 Call			(3,410	)
20/(880,000)		DexCom, Inc. Jul21 440 Call			(9,700	)
64/(1,424,000)		Eli Lilly & Co. Jul21 222.5 Call			(57,920	)
28/(588,000)		HCA Healthcare, Inc. Jun21 220 Call			(8,064	)
143/(1,801,800)		Health Care Select Sector SPDR Fund Jul21 126 Call			(18,733	)
102/(1,020,000)		Horizon Therapeutics plc Jul21 100 Call			(8,160	)
15/(675,000)		Humana, Inc. Jul21 450 Call			(6,225	)
34/(748,000)		ICON plc Jul21 220 Call			(7,854	)
14/(378,000)		Laboratory Corporation of America Holdings Jul21 270 Call			(12,600	)
140/(1,778,000)		Medtronic plc Jul21 127 Call			(7,840	)
24/(624,000)		Molina Healthcare, Inc. Jul21 260 Call			(10,080	)
155/(697,500)		Smith & Nephew plc Jul21 45 Call			(5,425	)
19/(950,000)		Thermo Fisher Scientific, Inc. Jul21 500 Call			(20,767	)
89/(3,560,000)		UnitedHealth Group, Inc. Jul21 400 Call			(75,205	)
20/(700,000)		Waters Corp. Jul21 350 Call			(7,300	)
56/(952,000)		Zimmer Biomet Holdings, Inc. Jul21 170 Call			(1,792	)
TOTAL OPTION CONTRACTS WRITTEN  (Premiums received ($321,654))					(422,465	)
TOTAL INVESTMENTS – 124.1% (Cost $645,750,217)					720,935,396
OTHER LIABILITIES IN EXCESS OF ASSETS - (24.1)%					(140,221,388	)
NET ASSETS - 100%				$	580,714,008

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended.  These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

(b) Security fair valued using significant unobservable inputs. See Investment Valuation and Fair Value Measurements.

(c) Non-income producing security.

(d) All or a portion of this security is on loan as of June 30, 2021.

(e) A portion of security is pledged as collateral for call options written.

(f) 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 June 30, 2021.

ADR American Depository Receipt

Tekla World Healthcare Fund

SCHEDULE OF INVESTMENTS 

June 30, 2021

(Unaudited, continued)

The following forward contracts were held as of June 30, 2021
Description		Counterparty		Settlement  Date		Currency								Settlement Value (in USD)				Current Value				Unrealized Gain/(Loss)
Contracts Sold:
Australian Dollar		Goldman Sachs Bank		07/30/21			4,572,304				AUD			$	3,468,609			$	3,429,483			$	39,126
British Pound		Goldman Sachs Bank		07/30/21			9,626,100				GBP				13,364,203				13,316,914				47,289
Danish Krone		Goldman Sachs Bank		07/30/21			10,661,183				DKK				1,711,295				1,700,905				10,390
Euro		Goldman Sachs Bank		07/30/21			11,686,116				EUR				13,950,444				13,864,850				85,594
Israeli Sheqel		Goldman Sachs Bank		07/30/21			4,457,647				ILS				1,371,099				1,367,619				3,480
Japanese Yen		Goldman Sachs Bank		07/30/21			1,203,463,586				JPY				10,858,733				10,835,229				23,504
Swiss Franc		Goldman Sachs Bank		07/30/21			16,552,450				CHF				18,047,781				17,903,008				144,773
																		$	62,418,008			$	354,156

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

Tekla World Healthcare Fund

NOTES TO SCHEDULE OF INVESTMENTS

June 30, 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 Fund holds securities, currencies and other assets that are denominated in a foreign currency. The Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time) when valuing such assets. 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. Puts and calls generally are valued at the close of regular trading on the securities or commodities exchange on which they are primarily traded. Options on securities generally are valued at their last sale price in the case of exchange traded options or, in the case of OTC-traded options, the average of the last sale price as obtained from two or more dealers unless there is only one dealer, in which case that dealer’s price is used. Forward foreign currency contracts are valued on the basis of the value of the underlying currencies at the prevailing forward exchange rates. 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. 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, 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 June 30, 2021, the cost of securities for Federal income tax purposes was $646,199,292. The net unrealized gain on securities held by the Fund was $74,736,104, including gross unrealized gain of $109,917,838 and gross unrealized loss of $35,181,734.

Security 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.

Tekla World Healthcare Fund 

NOTES TO SCHEDULE OF INVESTMENTS

June 30, 2021

(Unaudited, continued)

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.

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 June 30, 2021, the Fund loaned securities valued at $22,467,735 and received $23,053,920 of cash collateral.

Forward Contracts

Forward contracts involve the purchase or sale of a specific quantity of a commodity, government security, foreign currency, or other asset at a specified price, with delivery and settlement at a specified future date. Because it is a completed contract, a purchase forward contract can be a cover for the sale of a futures contract. The Fund may enter into forward contracts for hedging purposes and non-hedging purposes (i.e., to increase returns). Forward contracts may be used by the Fund for hedging purposes to protect against uncertainty in the level of future foreign currency exchange rates, such as when the Fund anticipates purchasing or selling a foreign security. Forward contracts may also be used to attempt to protect the value of the Fund’s existing holdings of foreign securities. Forward contracts may also be used for non-hedging purposes to pursue the Fund’s investment objective. There is no requirement that the Fund hedge all or any portion of its exposure to foreign currency risks.

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.

For the period ended June 30, 2021, there were no transfers between the levels.

Tekla World Healthcare Fund

NOTES TO SCHEDULE OF INVESTMENTS

June 30, 2021

(Unaudited, continued)

The following is a summary of the levels used as of June 30, 2021 to value the Fund’s net assets.

Assets at Value		Level 1				Level 2				Level 3				Total
Non-convertible Notes
France		$	-			$	2,966,062			$	-			$	2,966,062
Ireland			-				2,687,416				-				2,687,416
United Kingdom			-				5,472,017				-				5,472,017
United States			-				67,245,966				-				67,245,966
Convertible Preferred
France			-				-				3,320,125				3,320,125
Ireland			-				-				619,756				619,756
Switzerland			-				-				2,047,583				2,047,583
United States			-				-				464,677				464,677
Common Stocks And Warrants
Australia			8,281,153				-				-				8,281,153
China			6,444,666				-				-				6,444,666
Denmark			5,630,910				-				-				5,630,910
France			4,294,634				-				-				4,294,634
Germany			10,824,084				-				-				10,824,084
Ireland			27,393,340				-				-				27,393,340
Israel			893,782				-				-				893,782
Japan			19,523,443				-				-				19,523,443
Netherlands			10,272,653				-				-				10,272,653
Spain			821,922				-				-				821,922
Switzerland			37,811,475				-				-				37,811,475
United Kingdom			29,386,701				-				1,278				29,387,979
United States			400,994,167				-				-				400,994,167
Exchange Traded Fund			12,198,131				-				-				12,198,131
Short-term Investment			23,053,920				38,708,000				-				61,761,920
Other Assets			-				-				113,889				113,889
Total		$	597,824,981			$	117,079,461			$	6,567,308			$	721,471,750
Assets
Forward Currency Contracts		$	-			$	354,156			$	-			$	354,156
Liabilities
Options Contracts Written			(422,465	)			-				-				(422,465	)
Total		$	(422,465	)		$	354,156			$	-			$	(68,309	)

Tekla World Healthcare Fund

NOTES TO SCHEDULE OF INVESTMENTS

June 30, 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, 2020				Net realized gain (loss) and change in unrealized appreciation (depreciation)				Cost of purchases and conversions				Proceeds from sales and conversions				Net transfers into (out of) Level 3				Balance as of June 30, 2021
Convertible Notes
United States		$	334,708			$	(221,749	)		$	-			$	(112,959	)		$	-			$	-
Convertible Preferred and Warrants
France			1,969,726				33,087				1,317,312				-				-				3,320,125
Ireland			-				4,756				615,000				-				-				619,756
Switzerland			1,368,002				242,180				1,711,411				(1,274,010	)			-				2,047,583
United States			2,898,102				10,991,796				879				(13,426,100	)			-				464,677
Common Stocks and Warrants
United Kingdom			68,537				(67,259	)			-				-				-				1,278
Other Assets			-				-				113,889				-				-				113,889
Total		$	6,639,075			$	10,982,811			$	3,758,491			$	(14,813,069	)		$	-			$	6,567,308

Net change in unrealized appreciation (depreciation) from  investments still held as of June 30, 2021    $433,712

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 June 30, 2021

Valuation Technique

Unobservable Input

Range (Weighted Average)

Common Stock and Warrants

$

1,278

Income approach,   Black-Scholes

Discount for lack of marketability

20.00% (20.00%)

Convertible Preferred

7,867

Probability adjusted value

Probability of events Timing of events

50.00% (50.00%) 0.25 (0.25) years

5,492,233

Market approach

(a)

N/A

952,041

Recent transaction

(b)

N/A

Other Assets

113,889

Probability adjusted value

Probability of events Timing of events

20.00% (20.00%) 0.25 (0.25) years

$

6,567,308

(a) There is no quantitative information to provide as this method of measure is investment specific.

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

Tekla World Healthcare Fund 

NOTES TO SCHEDULE OF INVESTMENTS

June 30, 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 10% or less of Managed Assets. The value of these securities represented 1% of the Fund’s Managed Assets at June 30, 2021.

At June 30, 2021, the Fund had commitments of $2,026,462 relating to an additional investment in one private company.

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 June 30, 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
Dynacure Series C Cvt. Pfd			04/21/20, 10/28/20			$	3,142,223			$	25.16			$	3,320,125
IO Light Holdings, Inc.Series A2 Cvt. Pfd			04/30/20†				336,881				3.45				340,152
Oculis SA
Series B2 Cvt. Pfd			01/16/19				1,274,010				10.64				1,610,183
Series C Cvt. Pfd			04/07/21				437,400				10.64				437,400
Priothera Ltd. Series A Cvt. Pfd			10/07/20				615,000				11.86				619,756
Rainier Therapeutics, Inc.
Series A Cvt. Pfd			01/19/16, 10/24/16				850,737				0.00††				131
Series B Cvt. Pfd			03/03/17				566,769				0.16				124,394
						$	7,223,020							$	6,452,141

(#) 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