abrdn WORLD HEALTHCARE FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2023
(Unaudited)
| Principal Amount | Value | |||||||
| Non-Convertible Notes – 19.8% | ||||||||
| France – 0.6% | ||||||||
| Sanofi, 3.63% due 06/19/28 | $ | 2,600,000 | $ | 2,550,564 | ||||
| Ireland – 0.3% | ||||||||
| Endo Dac/Endo Finance LLC/Endo Finco, Inc., 9.50% due 07/31/27 (a) | 516,000 | 36,120 | ||||||
| Endo Dac/Endo Finance LLC/Endo Finco, Inc., 6.00% due 06/30/28 (a) | 789,000 | 55,230 | ||||||
| Shire Acquisitions Investments Ireland DAC, 3.20% due 09/23/26 | 1,500,000 | 1,443,017 | ||||||
| 1,534,367 | ||||||||
| United Kingdom – 1.1% | ||||||||
| AstraZeneca plc, 3.38% due 11/16/25 | 5,000,000 | 4,890,209 | ||||||
| United States – 17.8% | ||||||||
| Abbott Laboratories, 4.75% due 11/30/36 | 5,652,000 | 5,789,174 | ||||||
| AbbVie, Inc., 4.50% due 05/14/35 | 3,200,000 | 3,129,701 | ||||||
| AbbVie, Inc., 4.45% due 05/14/46 | 1,705,000 | 1,565,406 | ||||||
| Amgen, Inc., 3.63% due 05/22/24 | 2,000,000 | 1,984,042 | ||||||
| Amgen, Inc., 2.00% due 01/15/32 | 1,555,000 | 1,275,038 | ||||||
| Baxalta, Inc., 4.00% due 06/23/25 | 831,000 | 816,625 | ||||||
| Becton, Dickinson and Co., 3.73% due 12/15/24 | 328,000 | 322,837 | ||||||
| Bristol-Myers Squibb Co., 3.40% due 07/26/29 | 1,400,000 | 1,327,848 | ||||||
| CVS Health Corp., 1.88% due 02/28/31 | 2,448,000 | 2,014,621 | ||||||
| DH Europe Finance II Sarl, 3.25% due 11/15/39 | 985,000 | 816,920 | ||||||
| Elevance Health, Inc., 2.55% due 03/15/31 | 3,200,000 | 2,778,465 | ||||||
| EMD Finance LLC, 3.25% due 03/19/25(a) | 4,000,000 | 3,904,585 | ||||||
| GlaxoSmithKline Capital plc, 3.00% due 06/01/24 | 1,400,000 | 1,385,627 | ||||||
| GlaxoSmithKline Capital plc, 3.38% due 06/01/29 | 1,000,000 | 962,925 | ||||||
| HCA, Inc., 5.38% due 02/01/25 | 1,250,000 | 1,248,163 | ||||||
| HCA, Inc., 5.25% due 04/15/25 | 600,000 | 599,303 | ||||||
| IQVIA, Inc., 5.00% due 05/15/27(a) | 710,000 | 696,826 | ||||||
| Johnson & Johnson, 2.45% due 03/01/26 | 4,300,000 | 4,135,527 | ||||||
| Johnson & Johnson, 2.90% due 01/15/28 | 1,400,000 | 1,339,551 | ||||||
| Johnson & Johnson, 3.70% due 03/01/46 | 5,470,000 | 4,785,617 | ||||||
| Laboratory Corporation of America Holdings, 3.60% due 02/01/25 | 1,400,000 | 1,376,025 | ||||||
| Mallinckrodt CB LLC, 0.00% due 06/15/29 | 997,897 | 0 | ||||||
| Medtronic, Inc., 4.38% due 03/15/35 | 1,675,000 | 1,634,630 | ||||||
| Merck & Co., Inc., 2.75% due 02/10/25 | 1,463,000 | 1,430,491 | ||||||
| Novartis Capital Corp., 3.40% due 05/06/24 | 2,115,000 | 2,101,012 | ||||||
| Par Pharmaceutical, Inc., 7.50% due 04/01/27 (a) | 193,000 | 123,520 | ||||||
| Pfizer, Inc., 3.45% due 03/15/29 | 5,300,000 | 5,106,590 | ||||||
| Pfizer, Inc., 4.00% due 12/15/36 | 1,800,000 | 1,698,836 | ||||||
| Roche Holdings, Inc., 2.08% due 12/13/31(a) | 3,600,000 | 3,030,962 | ||||||
| Senior Housing Properties Trust, 4.75% due 05/01/24 | 1,750,000 | 1,743,062 | ||||||
| The Cigna Group, 3.50% due 06/15/24 | 2,785,000 | 2,757,483 | ||||||
| The Cigna Group, 2.38% due 03/15/31 | 3,200,000 | 2,735,025 | ||||||
| Thermo Fisher Scientific, Inc., 5.40% due 08/10/43 | 3,500,000 | 3,701,818 | ||||||
| UnitedHealth Group, Inc., 3.88% due 12/15/28 | 2,560,000 | 2,505,722 | ||||||
| UnitedHealth Group, Inc., 4.20% due 05/15/32 | 6,060,000 | 5,929,868 | ||||||
The accompanying notes are an integral part of this Schedule of Investments.
abrdn WORLD HEALTHCARE FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2023
(Unaudited, continued)
| Principal Amount | Value | |||||||
| United States – continued | ||||||||
| Zimmer Biomet Holdings, Inc., 4.25% due 08/15/35 | $ | 5,000,000 | $ | 4,515,700 | ||||
| 81,269,545 | ||||||||
| TOTAL NON-CONVERTIBLE NOTES (Cost $96,162,909) | 90,244,685 | |||||||
| Shares | ||||||||
| Convertible Preferreds (Restricted) (b) (c) - 1.3% | ||||||||
| France – 0.7% | ||||||||
| Amolyt Pharma SAS Series C | 981,328 | 2,318,342 | ||||||
| Flamingo Therapeutics, Inc. Series A3 | 136,337 | 919,611 | ||||||
| 3,237,953 | ||||||||
| Ireland – 0.2% | ||||||||
| Priothera Ltd. Series A, 6.00% | 194,134 | 750,100 | ||||||
| United States – 0.4% | ||||||||
| Endeavor Biomedicines, Inc. Series B, 8.00% | 424,079 | 1,999,999 | ||||||
| IO Light Holdings, Inc. Series A2 | 101,839 | 109,559 | ||||||
| 2,109,558 | ||||||||
| TOTAL CONVERTIBLE PREFERREDS (Cost $10,054,472) | 6,097,611 | |||||||
| Common Stocks - 105.3% | ||||||||
| Australia – 1.3% | ||||||||
| CSL Ltd. | 30,845 | 6,013,206 | ||||||
| Canada – 0.0% | ||||||||
| Fusion Pharmaceuticals, Inc. (b) | 7,378 | 70,903 | ||||||
| Fusion Pharmaceuticals, Inc.(Restricted) (b) | 3,689 | 31,906 | ||||||
| 102,809 | ||||||||
| China – 0.2% | ||||||||
| BeiGene Ltd. ADR (b) | 4,114 | 742,001 | ||||||
| I-Mab ADR (b) | 38,848 | 73,811 | ||||||
| 815,812 | ||||||||
| Denmark – 5.2% | ||||||||
| Novo Nordisk A/S ADR | 227,310 | 23,515,219 | ||||||
| France – 1.8% | ||||||||
| Abivax S.A. (b) | 37,000 | 402,667 | ||||||
| Sanofi ADR | 158,645 | 7,889,416 | ||||||
| 8,292,083 | ||||||||
| Germany – 1.4% | ||||||||
| Bayer AG | 173,684 | 6,444,354 | ||||||
| Ireland – 0.1% | ||||||||
| Perrigo Co. plc | 15,882 | 511,083 | ||||||
The accompanying notes are an integral part of this Schedule of Investments.
abrdn WORLD HEALTHCARE FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2023
(Unaudited, continued)
| Shares | Value | |||||||
| Israel – 0.2% | ||||||||
| Teva Pharmaceutical Industries Ltd. ADR (b) | 90,281 | $ | 942,534 | |||||
| Japan – 1.7% | ||||||||
| Astellas Pharma, Inc. | 44,419 | 528,287 | ||||||
| Daiichi Sankyo Co., Ltd. | 54,075 | 1,480,396 | ||||||
| Eisai Co., Ltd. | 6,830 | 340,074 | ||||||
| Hoya Corp. | 9,682 | 1,205,788 | ||||||
| M3, Inc. | 7,436 | 122,711 | ||||||
| Olympus Corp. | 28,940 | 417,728 | ||||||
| Ono Pharmaceutical Co., Ltd. | 11,330 | 201,555 | ||||||
| Otsuka Holdings Co., Ltd. | 20,808 | 778,156 | ||||||
| Shionogi & Co., Ltd. | 7,707 | 370,922 | ||||||
| Takeda Pharmaceuticals Co., Ltd. | 9,600 | 275,309 | ||||||
| Takeda Pharmaceuticals Co., Ltd. ADR | 105,073 | 1,499,392 | ||||||
| Terumo Corp. | 17,288 | 565,335 | ||||||
| 7,785,653 | ||||||||
| Netherlands – 1.3% | ||||||||
| argenx SE ADR (b) | 8,681 | 3,302,513 | ||||||
| Koninklijke Philips N.V. (b) | 114,765 | 2,677,467 | ||||||
| 5,979,980 | ||||||||
| Switzerland – 6.8% | ||||||||
| Lonza Group AG | 8,006 | 3,375,219 | ||||||
| Novartis AG ADR | 38,071 | 3,844,029 | ||||||
| Oculis Holding AG (b) | 304,333 | 3,347,663 | ||||||
| Roche Holding AG ADR | 562,829 | 20,391,295 | ||||||
| Sandoz Group AG ADR (b) | 7,614 | 243,724 | ||||||
| 31,201,930 | ||||||||
| United Kingdom – 4.6% | ||||||||
| AstraZeneca plc ADR | 240,450 | 16,194,307 | ||||||
| Smith & Nephew plc ADR | 181,710 | 4,957,049 | ||||||
| 21,151,356 | ||||||||
| United States – 80.7% | ||||||||
| Abbott Laboratories (d) | 111,065 | 12,224,925 | ||||||
| AbbVie, Inc. (d) | 107,919 | 16,724,207 | ||||||
| Acadia Healthcare Co., Inc. (b) | 25,973 | 2,019,661 | ||||||
| Agilent Technologies, Inc. (d) | 19,531 | 2,715,395 | ||||||
| Amgen, Inc. (d) | 45,424 | 13,083,021 | ||||||
| Ardelyx, Inc. (b) | 454,742 | 2,819,400 | ||||||
| Avantor, Inc. (b)(d) | 180,484 | 4,120,450 | ||||||
| Baxter International, Inc. (d) | 86,526 | 3,345,095 | ||||||
| Becton, Dickinson and Co. | 6,521 | 1,590,015 | ||||||
| Biogen, Inc. (b) | 20,604 | 5,331,697 | ||||||
| Boston Scientific Corp. (b)(d) | 172,145 | 9,951,703 | ||||||
| Bristol-Myers Squibb Co. | 100,088 | 5,135,515 | ||||||
| Catalent, Inc. (b)(d) | 26,200 | 1,177,166 | ||||||
| Charles River Laboratories International, Inc. (b)(d) | 21,364 | 5,050,450 | ||||||
| Community Health Systems, Inc. (b) | 8,700 | 27,231 | ||||||
| Community Healthcare Trust, Inc. | 14,900 | 396,936 | ||||||
The accompanying notes are an integral part of this Schedule of Investments.
abrdn WORLD HEALTHCARE FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2023
(Unaudited, continued)
| Shares | Value | |||||||
| United States - continued | ||||||||
| Danaher Corp. (d) | 54,909 | $ | 12,702,648 | |||||
| DexCom, Inc. (b)(d) | 25,415 | 3,153,747 | ||||||
| Diversified Healthcare Trust REIT | 63,841 | 238,765 | ||||||
| Edwards Lifesciences Corp. (b)(d) | 50,982 | 3,887,378 | ||||||
| Elevance Health, Inc. | 24,573 | 11,587,644 | ||||||
| Eli Lilly & Co. (d) | 52,523 | 30,616,707 | ||||||
| Galera Therapeutics, Inc. (b) | 161,709 | 23,513 | ||||||
| Gilead Sciences, Inc. (d) | 87,662 | 7,101,499 | ||||||
| Global Medical REIT, Inc. | 143,229 | 1,589,842 | ||||||
| GSK plc ADR | 41,852 | 1,551,035 | ||||||
| Guardant Health, Inc. (b) | 53,333 | 1,442,658 | ||||||
| HCA Healthcare, Inc. (d) | 12,213 | 3,305,815 | ||||||
| Healthcare Realty Trust, Inc. | 149,567 | 2,577,039 | ||||||
| Healthpeak Properties, Inc. | 83,601 | 1,655,300 | ||||||
| Humana, Inc. (d) | 19,238 | 8,807,349 | ||||||
| IDEXX Laboratories, Inc. (b)(d) | 12,104 | 6,718,325 | ||||||
| Illumina, Inc. (b)(d) | 26,735 | 3,722,581 | ||||||
| Incyte Corp. (b)(d) | 12,302 | 772,443 | ||||||
| Insulet Corp. (b)(d) | 8,341 | 1,809,830 | ||||||
| Intuitive Surgical, Inc. (b) | 20,041 | 6,761,032 | ||||||
| IQVIA Holdings, Inc. (b) | 16,311 | 3,774,039 | ||||||
| Johnson & Johnson (d) | 164,139 | 25,727,147 | ||||||
| LTC Properties, Inc. | 46,903 | 1,506,524 | ||||||
| McKesson Corp. (d) | 10,401 | 4,815,455 | ||||||
| Medical Properties Trust, Inc. | 145,186 | 712,863 | ||||||
| Medtronic plc (d) | 79,482 | 6,547,727 | ||||||
| Merck & Co., Inc. | 172,615 | 18,818,487 | ||||||
| Moderna, Inc. (b) | 14,416 | 1,433,671 | ||||||
| Molina Healthcare, Inc. (b)(d) | 12,236 | 4,420,989 | ||||||
| National Health Investors, Inc. | 4,442 | 248,086 | ||||||
| Omega Healthcare Investors, Inc. | 71,075 | 2,179,160 | ||||||
| Pfizer, Inc. (d) | 392,775 | 11,307,992 | ||||||
| Physicians Realty Trust | 291,309 | 3,877,323 | ||||||
| R1 RCM, Inc. (b) | 124,297 | 1,313,819 | ||||||
| Regeneron Pharmaceuticals, Inc. (b) | 10,566 | 9,280,012 | ||||||
| ResMed, Inc. (d) | 10,104 | 1,738,090 | ||||||
| Sabra Health Care REIT, Inc. | 90,781 | 1,295,445 | ||||||
| Stryker Corp. | 16,321 | 4,887,487 | ||||||
| The Cigna Group | 2,600 | 778,570 | ||||||
| Thermo Fisher Scientific, Inc. (d) | 31,366 | 16,648,759 | ||||||
| UnitedHealth Group, Inc. (d) | 50,201 | 26,429,321 | ||||||
| Universal Health Realty Income Trust | 8,183 | 353,915 | ||||||
| Ventas, Inc. | 66,681 | 3,323,381 | ||||||
| Veradigm, Inc. (b) | 90,363 | 947,908 | ||||||
| Vertex Pharmaceuticals, Inc. (b)(d) | 17,979 | 7,315,475 | ||||||
| Welltower, Inc. | 41,484 | 3,740,612 | ||||||
| West Pharmaceutical Services, Inc. | 3,370 | 1,186,644 | ||||||
| Zimmer Biomet Holdings, Inc. (d) | 23,986 | 2,919,096 | ||||||
The accompanying notes are an integral part of this Schedule of Investments.
abrdn WORLD HEALTHCARE FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2023
(Unaudited, continued)
| Shares | Value | |||||||
| United States - continued | ||||||||
| Zoetis, Inc. | 27,301 | $ | 5,388,398 | |||||
| 368,654,412 | ||||||||
| TOTAL COMMON STOCKS (Cost $486,516,224) | 481,410,431 | |||||||
| Short-Term Investments – 0.9% | ||||||||
| State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.32% (e) | 3,937,975 | $ | 3,937,975 | |||||
| TOTAL SHORT-TERM INVESTMENTS (Cost $3,937,975) | 3,937,975 | |||||||
| TOTAL INVESTMENTS BEFORE MILESTONE INTEREST – 127.3% (Cost $596,671,580) | 581,690,702 | |||||||
| Interest | ||||||||
| Milestone Interest (Restricted) (b) (c) – 0.0% | ||||||||
| Biotechnology – 0.0% | ||||||||
| Rainier Therapeutics Milestone Interest | 1 | 0 | ||||||
| TOTAL MILESTONE INTERESTS (Cost $143,115) | 0 |
| Number
of Contracts (100 shares each)/ Notional Amount ($) |
||||||||
| Option Contracts Written – (0.1)% | ||||||||
| Call Option Contracts Written – (0.1)% | ||||||||
| Abbott Laboratories Jan24 110 Call | 162/(1,782,000) | $ | (26,568 | ) | ||||
| Abbvie, Inc. Jan24 157.5 Call | 89/(1,401,750) | (10,146 | ) | |||||
| Agilent Technologies, Inc. Jan24 145 Call | 19/(275,500) | (1,995 | ) | |||||
| Amgen, Inc. Jan24 285 Call | 67/(1,909,500) | (47,570 | ) | |||||
| Avantor, Inc. Jan24 25 Call | 259/(647,500) | (3,885 | ) | |||||
| Baxter International, Inc. Jan24 41 Call | 41/(168,100) | (861 | ) | |||||
| Boston Scientific Corp. Jan24 57.5 Call | 250/(1,437,500) | (31,750 | ) | |||||
| Catalent, Inc. Jan24 45 Call | 25/(112,500) | (4,600 | ) | |||||
| Charles River Laboratories International, Inc. Jan24 240 Call | 20/(480,000) | (9,100 | ) | |||||
| Danaher Corp. Jan24 235 Call | 81/(1,903,500) | (34,425 | ) | |||||
| Dexcom, Inc. Jan24 130 Call | 35/(455,000) | (8,750 | ) | |||||
| Edwards Lifesciences Corp. Jan24 80 Call | 75/(600,000) | (4,125 | ) | |||||
| Eli Lilly & Co. Jan24 610 Call | 77/(4,697,000) | (36,960 | ) | |||||
| Gilead Sciences, Inc. Jan24 82.5 Call | 128/(1,056,000) | (11,264 | ) | |||||
| Hca Healthcare, Inc. Jan24 280 Call | 9/(252,000) | (1,881 | ) | |||||
| Humana, Inc. Jan24 475 Call | 9/(427,500) | (3,600 | ) | |||||
| Idexx Laboratories, Inc. Jan24 560 Call | 17/(952,000) | (19,550 | ) | |||||
| Illumina, Inc. Jan24 140 Call | 26/(364,000) | (15,860 | ) | |||||
| Incyte Corp. Jan24 65 Call | 18/(117,000) | (1,404 | ) | |||||
| Insulet Corp. Jan24 220 Call | 12/(264,000) | (9,480 | ) | |||||
| Johnson & Johnson Jan24 160 Call | 238/(3,808,000) | (21,896 | ) | |||||
| Mckesson Corp. Jan24 460 Call | 10/(460,000) | (10,300 | ) | |||||
| Medtronic Plc Jan24 85 Call | 90/(765,000) | (3,600 | ) | |||||
| Molina Healthcare, Inc. Jan24 380 Call | 12/(456,000) | (1,992 | ) | |||||
| Pfizer, Inc. Jan24 28 Call | 387/(1,083,600) | (47,214 | ) | |||||
| ResMed, Inc. Jan24 180 Call | 15/(270,000) | (3,150 | ) | |||||
| Thermo Fisher Scientific, Inc. Jan24 540 Call | 31/(1,674,000) | (26,040 | ) | |||||
The accompanying notes are an integral part of this Schedule of Investments.
abrdn WORLD HEALTHCARE FUND
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2023
(Unaudited, continued)
| Number
of Contracts (100 shares each)/ Notional Amount ($) |
Value | |||||||
| Call Option Contracts Written (continued) | ||||||||
| Unitedhealth Group, Inc. Jan24 550 Call | 13/(715,000) | $ | (3,679 | ) | ||||
| Vertex Pharmaceuticals, Inc. Jan24 425 Call | 17/(722,500) | (2,550 | ) | |||||
| Zimmer Biomet Holdings, Inc. Jan24 125 Call | 23/(287,500) | (2,990 | ) | |||||
| TOTAL CALL OPTION CONTRACTS WRITTEN (Premiums received $(399,135)) | (407,185 | ) | ||||||
| TOTAL INVESTMENTS - 127.2% (Cost $596,415,560) | 581,283,517 | |||||||
| OTHER LIABILITIES IN EXCESS OF ASSETS - (27.2)% | (124,173,951 | ) | ||||||
| NET ASSETS - 100% | $ | 457,109,566 | ||||||
The percentage shown for each investment category in the Schedule of Investments is based on net assets.
| (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) | Non-income producing security. |
| (c) | Security fair valued using significant unobservable inputs. See Investment Valuation and Fair Value Measurements. |
| (d) | A portion of security is pledged as collateral for call options written. |
| (e) | Registered investment company advised by State Street Global Advisors. The rate shown is the annualized seven-day yield as of December 31, 2023. |
| ADR | American Depository Receipt |
The following forward contract were held as of December 31, 2023
| Description | Counterparty | Settlement
Date |
Currency | Settlement Value (in USD) |
Current Value |
Unrealized Gain/(Loss) |
||||||||||||||||
| Contracts Sold: | ||||||||||||||||||||||
| Australian Dollar | Goldman Sachs Bank | 01/31/24 | 4,572,304 | AUD | $ | 3,116,286 | $ | 3,118,603 | $ | (2,317 | ) | |||||||||||
| British Pound | Goldman Sachs Bank | 01/31/24 | 9,440,375 | GBP | 12,004,381 | 12,035,003 | (30,622 | ) | ||||||||||||||
| Danish Krone | Goldman Sachs Bank | 01/31/24 | 53,401,650 | DKK | 7,905,500 | 7,919,328 | (13,828 | ) | ||||||||||||||
| Euro | Goldman Sachs Bank | 01/31/24 | 11,906,072 | EUR | 13,136,981 | 13,158,110 | (21,129 | ) | ||||||||||||||
| Israeli Sheqel | Goldman Sachs Bank | 01/31/24 | 4,457,647 | ILS | 1,237,410 | 1,231,855 | 5,555 | |||||||||||||||
| Japanese Yen | Goldman Sachs Bank | 01/31/24 | 523,322,125 | JPY | 3,703,790 | 3,726,677 | (22,887 | ) | ||||||||||||||
| Swiss Franc | Goldman Sachs Bank | 01/31/24 | 13,872,816 | CHF | 16,287,331 | 16,541,006 | (253,675 | ) | ||||||||||||||
| $ | 57,730,582 | $ | (338,903 | ) | ||||||||||||||||||
The accompanying notes are an integral part of this Schedule of Investments.
abrdn World Healthcare Fund
December 31, 2023
(Unaudited)
1. Summary of Significant Accounting Policies
a. Security Valuation:
The Fund values its securities at current market value or fair value, consistent with regulatory requirements. "Fair value" is defined in the Fund's Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to transact at the measurement date. Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Board of Trustees (the “Board”) designated abrdn Inc. (the “Investment Adviser” or the “Adviser”) as the valuation designee ("Valuation Designee") for the Fund to perform the fair value determinations relating to Fund investments for which market quotations are not readily available. With respect to the Fund's investments in securities of early and /or later stage financing of a privately held companies ("Venture Capital Securities"), the Private Venture Valuation Committee ("PV Valuation Committee"), which is a Committee of the Board, performs fair value determinations for the Fund.
Long-term debt and other fixed-income securities are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service provider. If there are no current day bids, the security is valued at the previously applied bid. Pricing services generally price debt securities assuming orderly transactions of an institutional “round lot” size and the strategies employed by the Valuation Designee generally trade in round lot sizes. In certain circumstances, some trades may occur in smaller “odd lot” sizes which may be effected at lower, or higher, prices than institutional round lot trades. Short-term debt securities (such as commercial paper and U.S. treasury bills) having a remaining maturity of 60 days or less are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service, or on the basis of amortized cost, if it represents the best approximation of fair value. Debt and other fixed-income securities are generally determined to be Level 2 investments.
Equity securities that are traded on an exchange are valued at the last quoted sale price or the official close price on the principal exchange on which the security is traded at the “Valuation Time” subject to application, when appropriate, of the valuation factors described in the paragraph below. Under normal circumstances, the Valuation Time is as of the close of regular trading on the New York Stock Exchange ("NYSE") (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask price quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price.
Convertible preferred shares, warrants or convertible note interests in Venture Capital Securities, milestone interests, and other restricted securities are typically valued in good faith, based upon the recommendations made by the PV Valuation Committee or the Valuation Designee pursuant to fair valuation policies and procedures approved by the Board.
Derivatives are valued at fair value. Exchange traded derivatives are generally Level 1 investments and over-the-counter and centrally cleared derivatives are generally Level 2 investments. Forward foreign currency contracts are generally valued based on the bid price of the forward rates and the current spot rate. Forward exchange rate quotations are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12-month periods. An interpolated valuation is derived based on the actual settlement dates of the forward contracts held. Exchange-traded options are valued at the last quoted sales price. In the absence of a sales price, options are valued at the mean of the bid/ask price quoted at the close on the exchange on which the options trade. When market quotations or exchange rates are not readily available, or if the Adviser concludes that such market quotations do not accurately reflect fair value, the fair value of a Fund’s assets are determined in good faith in accordance with the Valuation Procedures.
Foreign equity securities that are traded on foreign exchanges that close prior to the Valuation Time are valued by applying valuation factors to the last sale price or the mean price as noted above. Valuation factors are provided by an independent pricing service provider. These valuation factors are used when pricing the Fund's portfolio holdings to estimate market movements between the time foreign markets close and the time the Fund values such foreign securities. These valuation factors are based on inputs such as depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When prices with the application of valuation factors are utilized, the value assigned to the foreign securities may not be the same as quoted or published prices of the securities on their primary markets. A security that applies a valuation factor is determined to be a Level 2 investment because the exchange-traded price has been adjusted. Valuation factors are not utilized if the independent pricing service provider is unable to provide a valuation factor or if the valuation factor falls below a predetermined threshold; in such case, the security is determined to be a Level 1 investment.
abrdn World Healthcare Fund
December 31, 2023
(Unaudited, continued)
In the event that a security’s, other than a Venture Capital Security, market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closes before the Valuation Time), the security is valued at fair value as determined by the Valuation Designee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. A security that has been fair valued by the Valuation Designee may be classified as Level 2 or Level 3 depending on the nature of the inputs.
Venture Capital Securities are valued based on a consideration of relevant factors, including both observable and unobservable inputs. Observable and unobservable inputs considered may include (i) the existence of any contractual restrictions on the disposition of securities; (ii) information obtained from the company, which may include an analysis of the company's financial statements, products, intended markets or technologies; (iii) the price of the same or similar security negotiated at arm's length in an issuer's completed subsequent round of financing; (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies; or (v) a probability and time value adjusted analysis of contractual terms. Where available and appropriate, multiple valuation methodologies are applied to confirm fair value. Significant unobservable inputs are often used in the fair value determination. A significant change in any of these inputs may result in a significant change in the fair value measurement. Additionally, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different from the valuations used at the date of these financial statements.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level, measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3, the lowest level, measurements to valuations based upon unobservable inputs that are significant to the valuation. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement Open-end mutual funds are valued at the respective net asset value (“NAV”) as reported by such company. The prospectuses for the registered open-end management investment companies in which the Fund invests explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time (as defined below). A security using any of these pricing methodologies is determined to be a Level 1 investment.
The three-level hierarchy of inputs is summarized below:
Level 1 - quoted prices in active markets for identical investments;
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or
Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). Investments that are included in this category are Venture Capital Securities investments.
Level 3 investments are valued using significant unobservable inputs. The Fund may also use a discounted cash flow based valuation approach in which the anticipated future cash flows of the investment are used to estimate the current fair value. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.