Form N-CSRS - Certified Shareholder Report, Semi-Annual (2024)

The Board of Trustees (the "Board") of theabrdn Healthcare Opportunities Fund (the "Fund") has authorized a stable distribution policy ("SDP") of paying monthly distributions at an annual rate set once a year. The Fund's current monthly distribution is set ata rate of $0.18 per share. The SDP is subject to regular review by the Board. The SDP seeks to provide investors with a distribution out of current income, supplemented by realized capital gains and, to the extentnecessary, paid-in capital. On February 9, 2024, the Board determined to increase the distribution rate from $0.1125 to $0.18 commencing with the distribution payable on February 29, 2024.

With each distribution, the Fund will issuea notice to shareholders and an accompanying press release which will provide detailed information regarding the amount and estimated composition of the distribution and other information required by the Fund's SDPexemptive order. The Fund's Board may amend or terminate the SDP at any time without prior notice to shareholders; however, at this time, there are no reasonably foreseeable circ*mstances that might cause thetermination of the SDP. 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 SDP.

Distribution DisclosureClassification (unaudited)

The Fund’s policy is to provideinvestors with a stable distribution rate. Each monthly 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 yearbetween the U.S. Dollar and the currencies in which Fund assets are denominated and on the aggregate gains and losses realized by the Fund during the entire year.

Therefore, the exact amountof 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 “1940Act”), the Fund is required to indicate

the sources of certain distributions toshareholders. The estimated distribution composition may vary from month-to-month because it may be materially impacted by future income, expenses and realized gains and losses on securities and fluctuations in thevalue of the currencies in which Fund assets are denominated.

Based on generally acceptedaccounting principles, the Fund estimates the distributions for the fiscal year commenced October 1, 2023 through the distributions declared on May 9, 2024 consisted of 1% net realized long-term capital gains and 99%tax return of capital.

In January 2025, a Form1099-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 2024 calendar year.

abrdn Healthcare Opportunities Fund

Dear Shareholder,

We present the Semi-AnnualReport, which covers the activities of abrdn Healthcare Opportunities Fund (formerly, Tekla Healthcare Opportunities Fund) (the “Fund”), for the six-month period ended March 31, 2024. The Fund’sinvestment objective is to seek current income and long-term capital appreciation.

Effective close of regularbusiness on October 27, 2023, abrdnInc. is your new investment adviser. abrdn Inc. assumed responsibility for the management of four former Tekla Capital Management LLC closed-end funds: abrdn HealthcareInvestors (Ticker: HQH), formerly Tekla Healthcare Investors, abrdn Life Sciences Investors (Ticker: HQL), formerly Tekla Life Sciences Investors, abrdn Healthcare Opportunities Fund (Ticker: THQ), formerly TeklaHealthcare Opportunities Fund and abrdn World Healthcare Fund (Ticker: THW), formerly Tekla World Healthcare Fund.

Total Investment Return¹

For the six-month periodended March 31, 2024, 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:

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

NAV, Market Price andPremium(+)/Discount(-)

The below table represents acomparison from current six-month period end to prior fiscal year end of market price to published NAV and associated Premium(+) and Discount(-).

During the six-month periodended March 31, 2024, the Fund’s NAV was within a range of $18.90 to $22.39 and the Fund’s market price traded within a range of $15.33 to $20.21. During the six-month period ended March 31, 2024, theFund’s shares traded within a range of a premium(+)/discount(-) of -8.59% to -19.22%.

Portfolio Management Updates

On March 21, 2024, the Fundannounced the appointment of Dr. Jason Akus as co-lead portfolio manager to the Fund alongside Dr. Daniel Omstead. Effective June 1, 2024, Dr. Akus will become the lead Portfolio manager. Dr. Akus has served on theinvestment team with Dr. Omstead for over 20 years. The Fund will continue to be managed in accordance with its existing investment objective and strategies, pursuing the same investment philosophy and employingthe same investment process that has served the Fund well through the years.

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Stable Distribution Policy

The Fund has a stabledistribution policy (the "Policy") that provides for monthly distributions at a rate set by the Board of Trustees (the "Board"). On February 9, 2024, the Board determined to increase the distribution rate from $0.1125to $0.18 for the 12-month period commencing with the distribution payable in February 2024. Under the current Policy, the Fund intends to make monthly distributions at a rate of $0.18 per share to shareholders ofrecord. 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 anontaxable return of capital.

On April 9, 2024 and May 9,2024, the Fund announced that it will pay on April 30, 2024 and May 31, 2024 a distribution of $0.18 per share to all shareholders of record as of April 23, 2024 and May 23, 2024.

Distributions to commonshareholders for the six-month period ended March 31, 2024 totaled $0.81 per share. Based on the market price of $20.10 on March 31, 2024, the annualizsed distribution rate was 9.4%. Based on the NAV of $22.30 onMarch 31, 2024 the annualized distribution rate was 8.5%.

The Fund is covered underexemptive 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 monthlyin any one taxable year.

Unclaimed Share Accounts

Please be advised thatabandoned 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 unclaimedproperty, 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 toashareholder 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 willfollow 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 thestate 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 transferagent.

Open Market Repurchase Program

The Fund’s Boardapproved the renewal of the 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 theamount 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 ofmanagement based on historical discount levels and current market conditions. If shares are repurchased, the Fund reports repurchase activity on the Fund's website on a monthly basis. For the six-month period endedMarch 31, 2024, the Fund did not repurchase any shares through the Program.

On a quarterly basis, theFund’s 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 monthlybasis. 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 scheduleof 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 withthe 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 informationavailable to shareholders upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465.

Proxy Voting

A description of the policiesand 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 monthperiod 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 athttp://www.sec.gov.

Investor Relations Information

As part of abrdn’scommitment to shareholders, we invite you to visit the Fund on the web at www.abrdnthq.com. Here, you can view monthly fact sheets, quarterly commentary, distribution and performance information, and other Fundliterature.

Enroll in abrdn’s emailservices and be among the first to receive the latest closed-end fund news, announcements, videos, and other

Dear shareholders,

After more than twenty yearsof sharing my thoughts with you, this will be my final letter to shareholders. As we announced in recent months, sponsorship and management of your Fund has transitioned to abrdn while Dr. Jason Akus MD, MBA willbecome Lead Portfolio manager on June 1, 2024.

abrdn, founded in 1825, is aUK-based asset manager offering a large and diverse set of investment products, including closed-end funds. In fact, it is one of the largest managers of closed-end funds worldwide, managing 35 closed-end funds. I amconfident that your Fund and its healthcare siblings will benefit from abrdn.

As I make my own transition,I note that my enthusiasm for the healthcare sector continues unabated. After a twenty-year career in

pharmaceutical and biotech operatingcompanies and a subsequent twenty-year career investing in such companies, I continue to be amazed by the pace and magnitude of innovation I see. The pharmaceutical (including biotech) sector has been makingdiscoveries that improve and extend the lives of people for nearly one hundred years. I just can’t imagine that it won’t continue for another hundred years. This is great for the lives of peopleeverywhere. And it provides the basis for a long-term investment thesis. Quite a combination.

Sincerely,

Daniel R. Omstead, PhD
Former Portfolio Manager of the Fund

1.Organization

abrdn HealthcareOpportunities Fund (the "Fund") is a Massachusetts business trust formed on April 2, 2014 and registered under the Investment Company Act of 1940 as a non-diversified closed-end management investment company. The Fundcommenced operations on July 31, 2014. The Fund’s investment objective is to seek current income and long-term capital appreciation. The Fund invests primarily equity and debt in securities of public andprivateU.S. and non-U.S. companies in the healthcare industry believed by the Fund’s Investment Adviser, abrdn Inc. (as of October 27, 2023) (prior to October 27, 2023, Tekla Capital Management, LLC)(the"Investment Adviser," the "Adviser" or "abrdn"), to have significant potential for above-average growth. The Fund may invest in private companies and other restricted securities, including privateinvestments in public equity and venture capital investments, if these securities would currently comprise 10% or less of Managed Assets.

2.Summary of SignificantAccounting Policies

The Fundis aninvestment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 FinancialServices-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 accountingprinciples ("GAAP") in the United States of America. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosureof 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 ofthe 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 itssecurities 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 assetor 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 1940 Act, the Board designatedabrdnas 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 deemedunreliable. 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 ("PVValuation

Committee"), which is a Committee of the Board,performs fair value determinations for the Fund.

Long-term debt and otherfixed-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 thepreviously 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 generallytrade in round lot sizes. In certain circ*mstances, 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 debtsecurities (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 independentpricing 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 aretraded 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, whenappropriate, of the valuation factors described in the paragraph below. Under normal circ*mstances, 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 arevalued at the NASDAQ official closing price.

Convertible preferred shares,warrants or convertible note interests in Venture Capital Securities, milestone interests, and other restricted securities aretypically valued in good faith, based upon the recommendations made by the PVValuation Committee or the Valuation Designee pursuant to fair valuationpolicies and procedures approved by the Board.

Derivative instruments arevalued 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 basedon 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 isderived 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 aregenerally 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. Inthe absence of a sales price, options are valued at the mean of the bid/ask price quoted at theclose on the exchange on which the options trade. When market quotations or exchange rates are not readilyavailable, 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 ValuationProcedures.

Foreign equity securitiesthat 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 anindependent 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 suchforeign 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 closingprices 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 theirprimary 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 independentpricing 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 arecomprised of cash and cash equivalents invested in short-term investment funds which are redeemable daily. The Fund sweeps available cash into the State Street InstitutionalU.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 arecategorized as Level 1 investments.

In the event that asecurity’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 theValuation Time), the security is valued at fair value as determined by the Valuation Designee, taking into account the relevant factors and surrounding circ*mstances using valuation policies and procedures approved bythe 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 Securitiesare valued based on a consideration of relevant factors, including both observable andunobservable inputs. Observable and unobservable inputs considered may include (i) the existence of any contractualrestrictions on the disposition of securities; (ii) information obtained from the company, which may

include an analysis of the company'sfinancial 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 andextent 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 valuationmethodologies 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 inthe 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 bedifferent from the valuations used at the date of these financialstatements.

In accordance with theauthoritative 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 techniquesused 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 tovaluations 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 unobservableinputs 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 riskinherent 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. Observableinputs 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. Unobservableinputs 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 inthe circ*mstances. 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 arevalued at the respective NAV as reported by such company. The prospectuses for the registered open-end management investment companies in which the Fund invests explain the circ*mstances under which those companieswill use fair value pricing and the effects of using fair value pricing. Closed-end funds and ETFsare valued at the market price of the security at the Valuation Time (defined below). A security using any ofthese pricing methodologies is generally determined to be a Level 1 investment.

The three-level hierarchy of inputs issummarized below:

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

Level 2 - other significant observableinputs (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 usingsignificant 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. Thederived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results ofoperations.

A summary of standardinputs is listed below:

The following is asummary of the inputs used as of March 31, 2024 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 indicationof the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:

Restricted securities are privately-placedsecurities 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 andprivately-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"), as amended. Rule 144Asecurities 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 circ*mstances.

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 byan independent pricing service approved by the Board.

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

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

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

The Fund does not isolatethat 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 andunrealized 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 gainsor 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 translationof other assets and liabilities denominated in foreign currencies.

Net realized foreign exchangegains 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 dateon 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 currencytransactions 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; theopposite effect occurs if the U.S. Dollar falls in relative value.

d.Rights Issues andWarrants:

Rights issues give theright, 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 thecompany’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. PublicRights issues and warrants are speculative andhave no value if they are not exercised before the

expiration date. Rights issues and warrants arevalued at the last sale price on the exchange on which they are traded.

Options

An option contract is acontract 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 aspecified 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 obligationunder 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 orloss is recognized when the option contract expires, is exercised or is closed.

If the Fund writes a coveredcall 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 Fundwrites 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 meetthe 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 therisk 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 exactlywith changes in the value of the securities or currencies hedged.

All options on securities andsecurities 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 thesecurities 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 theoption. 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 priceof the option.

Information about derivatives reflected asof the date of this report is generally indicative of the type of activity for the six-month period ended March 31, 2024. The table below summarizes the weighted average values of derivatives holdings for the Fundduring the six-month period ended March 31, 2024.

e.Security Transactions,Investment Income and Expenses:

Security transactions arerecorded 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 onthe ex-date, except for certain dividends and corporate actions which may be recorded after the

ex-date, as soon as the Fund acquiresinformation regarding such dividends or corporate actions. Interest income and expenses are recorded on an accrual basis.

The calendar year-end amountsof ordinary income, capital gains and return of capital included in distributions received from the Funds’ investments in real estate investment trusts (“REITs”) are reported to the Funds after theend of the fiscal year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates arebased on the most recent REIT distribution information available.

f.Distributions:

The Fund has a stabledistribution policy to pay distributions from net investment income supplemented by net realized capital gains and return of capital distributions, if necessary, on a monthly basis. The stable distribution policy issubject to regular review by the Board. The Fund will also declare and pay distributions at least annually from net realized gains on investment transactions. Dividends and distributions to shareholders are recordedon the ex-dividend date. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP.

g.Federal Income Taxes:

The Fund intends tocontinue 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, 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.

For tax purposes, theSubsidiary is not a RIC and is a separate taxable entity not consolidated for tax purposes. As such, it is taxed at normal corporate tax rates based on taxable income and, as a result of its activities, may generatean income tax provision or benefit. The taxable income or loss of the Subsidiary may differ from its book income or loss due to temporary book and tax timing differences and permanent differences. This income taxprovision, or benefit, if any, and the related tax assets and liabilities are reflected in the consolidated financial statements.

The Fund recognizes the taxbenefits 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 nosignificant 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 ofthe most recent four fiscalyears up to the most recent fiscal year ended September 30, 2023 are subject to such review.

h.Milestone Interests

The Fund holds financialinstruments 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 estimatedrisk 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. Themilestone interests were received as part of the proceeds from the sale of one private company. Any payments received are treated as a reduction of

the cost basis of the milestone interestswith payments received in excess of the cost basis treated as a realized gain. The contractual obligations with respect to the milestone interests provide for payments at various stages of the developmentofRainier Therapeutics’ principal product candidate as of the date of the sale.

The following is a summary ofthe impact of the milestone interests on the financial statements as of and for the six-month period ended March 31, 2024:

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

i.Cash FlowInformation:

The cash amount shown inthe Statement of Cash Flows is the amount included in the Fund’s Statement of Assets and Liabilities and represents cash deposits at March 31, 2024.

3.Agreements and Transactionswith Affiliates

a.Investment Advisory andOther Affiliated Fees

Effective as of the closeof business October 27, 2023, abrdnserves as the Fund’s Investment Adviser pursuant to an investment management agreement (the “Advisory Agreement”) with the Fund. The Adviser is a wholly-ownedindirect subsidiary of abrdn plc. In rendering management services, the Adviser may use the resources of investment Adviser subsidiaries of abrdn plc. These affiliates have entered into procedures pursuant to whichinvestment professionals from affiliates may render portfolio management and research services as associated persons of the Adviser.

As compensation for itsservices to the Fund, the Investment Adviser receives an annual investment advisory fee at an annual rate of 1.00% of the average daily value of the Fund’s Managed Assets. Managed Assets means the total assetsof the Fund minus the Fund’s liabilities other than the loan payable. For the six-month period ended March 31, 2024, the Fund paid the Adviser $4,660,229.

Prior to close of business onOctober 27, 2023, the Fund paid Tekla Capital Management, LLC (the "Prior Adviser") an annual fee calculated at the same rate as discussed above. For the period from October 1, 2023 to October 27, 2023, the PriorAdviser earned an advisory fee of $770,332.

The Fund entered into aServices Agreement (the "Agreement") with the Adviser. Pursuant to the terms of the Agreement, the Fund reimbursed the Adviser for certain services related to a portion of the

payment of salary and provision of benefitsto the Fund’s Chief Compliance Officer. For the period from October 1, 2023 to October 27, 2023, these payments amounted to $7,722 and are included in the Miscellaneous category of expenses in the Statement ofOperations, together with insurance and other expenses incurred to unaffiliated entities. Expenses incurred pursuant to the Agreement as well as certain expenses paid for by the Prior Adviser are allocated to the Fundin an equitable fashion as approved by the Trustees or officers of the Fund who are also officers of the Adviser.

Effective upon the close ofbusiness on October 27, 2023, the Adviser as Adviser of the Fund, 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 1.44% of the average daily net assets of the Fund on an annualized basis for twelve months (the “ExpenseLimitation 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 (asdefined in the 1940 Act). During the six-month period ended March 31, 2024, the Adviser waived and assumed $45,503 of the Fund's expenses pursuant to the Expense Limitation Agreement.

b.Investor Relations:

Prior to March 1, 2024,Destra Capital Advisors LLC ("Destra") provided the Fund investor support services in connection with the ongoing operation of the Fund. The fund paid Destra a fee in an annual amount equal to 0.05% of the averageaggregate daily value of the Fund's Managed Assets pursuant to the investor support services agreement. Effective March 1, 2024, under the terms of the Investor Relations Services Agreement, abrdn Inc. provides andpays third parties to provide investor relations services to the Fund and certain other funds advised by abrdn Inc. or its affiliates as part of an Investor Relations Program. Under the terms of the Investor RelationsServices Agreement, abrdn Inc. provides and pays third parties to provide investor relations services to the Fund and certain other funds advised by abrdn Inc. or its affiliates as part of an Investor RelationsProgram. 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 arelimited by abrdn Inc. 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 andthe Fund's Portion is paid for by abrdn Inc.

Pursuant to the terms of theInvestor Relations Services Agreement, abrdn Inc. (or third parties engaged by abrdn Inc.), among other things,

provides objective and timely information toshareholders 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 andwebcasts, 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 largeinstitutional 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 periodended March 31, 2024, the Fund incurred investor relations fees of approximately $12,686. For the six-month period ended March 31, 2024, abrdn Inc. did not contribute to the investor relations fees for the Fundbecause 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 ofinvestment securities (excluding short-term securities) for the six-month period ended March 31, 2024, were $151,396,739 and $176,288,582, respectively.

5.Capital

The Fund is authorized toissue an unlimited number of common shares of beneficial interest at par value $0.01 per common share. As of March 31, 2024, there were 41,356,058 shares of common stock issued and outstanding.

6.Open Market RepurchaseProgram

In March 2024, the Boardapproved 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. Prior to this renewal, in March 2023,the Trustees approved the renewal of the share repurchase program to allow the Fund to repurchase up to 12% of its outstanding shares for a one-year period ending July 14, 2024.

For the six-month period endedMarch 31, 2024, the Fund did not repurchase any shares through this program.

On January 26, 2024 the Fund’sRevolving Credit Facility with the Bank of Nova Scotia was amended to extend the scheduled commitment termination date to January 24, 2025 with a committed facility amount of $225,000,000. ("Revolving CreditFacility”).

The Fund maintains a$225,000,000 revolving credit facility with the Bank of Nova Scotia, which expires on January 24, 2025. As of March 31, 2024, the Fund had drawn down $225,000,000 from the Revolving Credit Facility, which was themaximum borrowing outstanding during the period. The Fund is charged interest at the rate of 0.95% plus a SOFR Adjustment plus the relevant SOFR rate. The Fund is also charged a commitment fee on the daily unusedbalance of the revolving credit facility at the rate of 0.10% (per annum). Per the Revolving Credit Facility agreement, the Fund paid an upfront fee of 0.05% on the total revolving credit facility balance, which wasamortized through January 24, 2025. The Fund pledges its investment securities as the collateral for the revolving credit facility per the terms of the agreement. The weighted average interest rate and the averageoutstanding loan payable for the period from October 1, 2023 to March 31, 2024 were 6.57% and $225,000,000, respectively. The stated carrying amount of the revolving credit facility approximates its fair value basedupon the short term nature of the borrowings and the interest rates being based upon the market terms.

The Fund’s leveragedcapital structure creates special risks not associated with unleveraged funds having similar investment objectives and policies. The funds borrowed pursuant to the loan facility may constitute a substantial lien andburden by reason of their prior claim against the income of the Fund and against the net assets of the Fund in liquidation. The Fund is not permitted to declare

dividends or other distributions in theevent of default under the loan facility. In the event of a default under the loan facility, the lenders have the right to cause a liquidation of the collateral (i.e., sell portfolio securities and other assets of theFund) and, if any such default is not cured, the lenders may be able to control the liquidation as well. A liquidation of the Fund’s collateral assets in an event of default, or a voluntary paydown of the loanfacility in order to avoid an event of default, would typically involve administrative expenses and sometimes penalties. Additionally, such liquidations often involve selling off of portions of the Fund’s assetsat inopportune times which can result in losses when markets are unfavorable. The loan facility has a term of three years and is not a perpetual form of leverage; there can be no assurance that the loan facility willbe available for renewal on acceptable terms, if at all. Bank loan fees and expenses included in the Statement of Operations include fees for the loan facility as well as commitment fees for any portion of the loanfacility not drawn upon at any time during the period. During the fiscal year ended March 31, 2024, the Fund incurred fees of approximately $7,516,983.

The credit agreementgoverning the loan facility includes usual and customary covenants for this type of transaction. These covenants impose on the Fund asset coverage requirements, Fund composition requirements and limits on certaininvestments, such as illiquid investments, which are more stringent than those imposed on the Fund by the 1940 Act. The covenants or guidelines could impede the Investment Manager from fully managing the Fund’sportfolio in accordance with the Fund’s investment objective and policies. Furthermore, non-compliance with such covenants or the occurrence of other events could lead to the cancellation of the loanfacility.

9.Portfolio Investment Risks

a.Concentration Risk:

The Fund’s portfoliomay 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 numberof 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, theFund’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 overrelatively short periods of time.

b.Convertible SecuritiesRisk:

Convertible securitiesgenerally offer lower interest or dividend yields than nonconvertible debt securities of similar quality. The market value of convertible securities tends to decline as interest rates increase and, conversely, tendsto increase as interest rates decline. In addition, because of the conversion feature, the market value of convertible securities tends to vary with fluctuations in the market value of the underlying common stock.Consequently, a unique feature of convertible securities is that as the market price of the underlying common stock declines, convertible securities tend to trade increasingly on a yield basis, and so may notexperience market value declines to the same extent as the underlying common stock. Investments in convertible securities generally entail less risk than investments in common stock of the same issuer but more riskthan the issuer’s debt obligations.

c.Derivatives Risk(including Options, Futures and Swaps):

Derivatives are speculativeand may hurt the Fund’s performance. Thepotential benefits to be derived from the Fund’s options, futures andderivatives strategy are dependent upon the portfolio managers’abilityto discern pricing inefficiencies and predict trends in thesemarkets, which decisions could prove to be inaccurate.

d.Emerging MarketsRisk:

The Fund is subject toemerging markets risk. This is a magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging market countries because the countries may have lessstable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below).

e.Equity-Linked Notes:

The Fund may invest inequity-linked notes, which are generally subject to the same risks as the foreign equity securities or the basket of foreign securities they are linked to. If the linked security(ies) declines in value, the note mayreturn a lower amount at maturity. The

trading price of an equity-linked note alsodepends on the value of the linked security(ies).

f.Equity SecuritiesRisk:

The stock or other securityof 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) or to the industry inwhich the company is engaged (such as a reduction in the demand for products or services in a particular industry). Holders of common stock generally are subject to more risks than holders of preferred stock or debtsecurities 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.

g.Foreign SecuritiesRisk:

Foreign countries in whichthe Fund may invest may have markets that are less liquid, less regulated and more volatile than U.S. markets. The value of the Fund's investments may decline because of factors such as unfavorable or unsuccessfulgovernment actions, reduction of government or central bank support and political or financial instability. To the extent the Fundfocuses its investments in a single country or only a few countries in aparticular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified fund.

h.Key Personnel Risk:

There may be only a limitednumber 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.

i.Leverage Risk:

The Fund may use leverageto purchase securities. Increases and decreases in the value of the Fund's portfolio will be magnified when the Fund uses leverage.

j.Market Events Risk:

Markets are affected bynumerous factors, including interest rates, the outlook for corporate profits, the health of the national and world economies, the fluctuation of other stock markets around the world, and financial, economic and otherglobal market developments and disruptions, such as those arising from war, terrorism, market manipulation, government interventions, trading and tariff arrangements, defaults and shutdowns, political changes ordiplomatic developments, public health emergencies and natural/

environmental disasters. Such events cannegatively impact the securities markets and cause the Fund to lose value.

Policy and legislativechanges in countries around the world are affecting many aspects of financial regulation, and governmental and quasi-governmental authorities and regulators throughout the world have previously responded to seriouseconomic disruptions with a variety of significant fiscal and monetary policy changes.

The impact of these changeson the markets, and the practical implications for market participants, may not be fully known for some time. In addition, economies and financial markets throughout the world are becoming increasingly interconnected.As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to countries or sectors experiencing economic and financial difficulties, the value and liquidity of theFund’s investments may be negatively affected by such events.

k.REIT and Real EstateRisk:

Investment in real estateinvestment trusts ("REITs") and real estate involves the risks that are associated with direct ownership of real estate and with the real estate industry in general. These risks include: declines in the value of realestate; risks related to local economic conditions, overbuilding and increased competition; increases in property taxes and operating expenses; changes in zoning laws; casualty or condemnation losses; variations inrental income, neighborhood values or the appeal of properties to tenants; changes in interest rates and changes in general economic and market conditions; reduced demand for commercial and office space; increasedmaintenance or tenant improvement costs to convert properties for other uses; default risk of tenants and borrowers; the financial condition of tenants, buyers and sellers; and the inability to re-lease space onattractive terms or to obtainmortgage financing on a timely basis or at all. REITs’ share prices may decline because of adverse developments affecting the real estate industry including changes in interestrates. The returns from REITs may trail returns from the overall market. Additionally, there is always a risk that a given REIT will fail to qualify for favorable tax treatment. REITs may be leveraged, which increasesrisk. Certain REITs charge management fees, which may result in layering the management fee paid by the Fund.

l.Restricted Securitiesand Valuation Risk:

Some of the Fund’sinvestments are subject to restrictions on resale and generally have no established trading market or are otherwiseilliquid with little or no trading activity. The valuation process requires an analysis ofvarious 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) informationobtained from the issuer which may include an analysis of the company’s financial statements, the company’s

products or intended markets, or thecompany’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 someof 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 pursuantto 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 thedifferences could be material.

m.Risks Associated withthe Fund’s Option Strategy:

The ability of the Fund toachieve 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 withthe 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 transactionnot 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 ofmarket behavior or unexpected events.

As the writer of a calloption 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 thepremium 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 fromcapital 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 portionof 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 receivedon 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 asa writer of the option.

When the Fund writes putoptions, 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 purchasethe 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 itwrote 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 priceof the option minus the put premium.

n.Sector Risk:

To the extent that the Fundhas 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 inthat economic sector than funds that invest more broadly.

Pharmaceutical SectorRisk. 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 dependenton 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 theexpiration 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 propertyrights 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 isalso 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 thepharmaceutical 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 adverselyaffected by government regulation and changes in reimbursem*nt rates. The ability of many pharmaceutical companies to commercialize and monetize current and any future products depends in part on the extent to whichreimbursem*nt 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 IndustryRisk. 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 thedevelopment, 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 theexpiration 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 intellectualproperty 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 isalso 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 pricediscounting. 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 thebiotechnology sector may be adversely affected by government regulation and changes in reimbursem*nt 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 SectorRisk. 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 productsdepends 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 futuremedical 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 areregulated 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 conductbusiness 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 inthe 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 ToolsIndustry Risk. Life science industries are characterized by limited product focus, rapidly changing technology, extensive government regulation, and intense competition. In particular, technologicaladvances 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 maydisadvantage a company in an

intensely competitive environment. Thesevarious 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 lifescience industries.

Healthcare Technology SectorRisk. 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 forinfringement 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 ofcompanies in the healthcare technology sector.

Additionally, the success ofhealthcare 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 technologycompanies’ prospects for long-term growth.

Healthcare Services SectorRisk. 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 mayresult in government audits, lower reimbursem*nts, significant fines and penalties, the potential loss of certification, recoupment efforts or voluntary repayments. If healthcare services companies fail to adhere toall 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 ahealthcare 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 SectorRisk. 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 theirbusiness through marketing partnerships, their business may be materially and adversely affected.

Quality is extremelyimportant 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 andservices. If a healthcare supplies company fails to meet these standards or fails to adapt to evolving standards, its

reputation could be damaged, it could losecustomers, and its revenue and results of operations could decline.

Healthcare Facilities SectorRisk. A healthcare facility’s ability to negotiate favorable contracts significantly affects the revenues and operating results of such healthcare facilities. If a healthcare facility isunable 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 difficultycollecting from managed care payers, its results of operations could be adversely affected.

Further changes in theMedicare 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 Medicaidprograms 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 timingof payments to facilities, which could in turn adversely affect a healthcare facility’s overall business, financial condition, results of operations or cashflows.

Healthcare Equipment SectorRisk. 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 itis anticipated that governmental authorities will continue to scrutinize this industry closely, and that additional regulation may increase compliance and legal costs, exposure to litigation, andother adverse effects to operations.

Healthcare equipmentcompanies 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 healthcareequipment 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 producinghigh-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 meetthese standards, its reputation could be damaged, it could lose customers, and its revenue and results of operations could decline.

Healthcare DistributorsSector 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 thenature of the business of healthcare 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 onthe 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 suchcompanies, including pandemics, epidemics or natural disasters, or could be terminated. A sustained supply interruption could have an adverse effect on business.

o.Valuation Risk:

The price that the Fundcould 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 afair 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 couldrealize 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 pricingservices or other third-party service providers.

p.Venture CapitalInvestments Risk:

The Fund may occasionallyinvest 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 theventure 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 withsubstantial 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” capitalto 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 atthe 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 returnscommensurate with their associated risks.

These investments, which areconsidered 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 otherwisewhen 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 believesthat, 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 lowas “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 predominantlyspeculative.

10.Contingencies

In the normal course ofbusiness, 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 madeagainst the Fund, and therefore, cannot be estimated; however, the Fund expects the risk of loss from such claims to be remote.

11.TaxInformation

The U.S. federalincome tax basis of the Fund's investments (including derivatives, if applicable) and the net unrealized appreciation as of March 31, 2024, were as follows:

12.Subsequent Events

Based on this evaluation,no disclosures and/or adjustments were required to the financial statements as of March 31, 2024, other than as noted below.

On April 9, 2024 and May 9, 2024, the Fundannounced that it will pay on April 30, 2024 and May 31, 2024 a distribution of $0.18 per share to all shareholders of record as of April 23, 2024 and May 23, 2024.

On May 24, 2024, the Board ofabrdn plc announced Stephen Bird would be leaving abrdn effective June 30, 2024.

The Fund intends to distribute toshareholders 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 andshort-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 nameswill 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 shareholderselect 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, asdividend 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 sharescertified 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 receivedistributions 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 tohave 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 asagent 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, nonparticipantsin the Plan will receive cash and participants in the Plan will receive common stock, to be issued by the Fund or purchased by the Plan Agent in the open market, as provided below. If the market price per share (plusexpected per share fees) on the valuation date equals or exceeds NAV per share on that date, the Fund will issue new shares to participants at NAV; provided, however, that if the NAV is less than 95% of the marketprice on the valuation date, then such shares will be issued at 95% of the market price. The valuation date will be the payable date for such distribution or dividend or, if that date is not a trading day on the NYSE,the immediately preceding trading date. If NAV exceeds the market price of Fund shares at such time, or if the Fund should declare an income dividend or capital gains distribution payable only in cash, the Plan Agentwill, as agent for the participants, buy Fund shares in the open market, on the NYSE or elsewhere, for the participants’ accounts on, or shortly after, the payment date. If, before the Plan Agent has completedits purchases, the market price exceeds the NAV of the Fund share, the average per share purchase price paid by the Plan Agent may exceed the NAV of the Fund’s shares, resulting in the acquisition of fewershares than if the distribution had been paid in shares issued by the Fund on the dividend payment date. Because of

the foregoing difficulty with respect toopen-market purchases, the Plan provides that if the Plan Agent is unable to invest the full dividend amount in open-market purchases during the purchase period or if the market discount shifts to a market premiumduring the purchase period, the Plan Agent will cease making open-market purchases and will receive the uninvested portion of the dividend amount in newly issued shares at the close of business on the last purchasedate.

Participants have the optionof making additional cash payments of a minimum of $50 per investment (by check, one-time online bank debit or recurring automatic monthly ACH debit) to the Plan Agent for investment in the Fund’s common stock,with an annual maximum contribution of $250,000. The Plan Agent will wait up to three business days after receipt of a check or electronic funds transfer to ensure it receives good funds. Following confirmation ofreceipt of good funds, the Plan Agent will use all such funds received from participants to purchase Fund shares in the open market on the 25th day of each month or the next trading day if the 25th is not a tradingday.

If the participant sets uprecurring automatic monthly ACH debits, funds will be withdrawn from his or her U.S. bank account on the 20th of each month or the next business day if the 20th is not a banking business day and invested on the nextinvestment date. The Plan Agent maintains all shareholder accounts in the Plan and furnishes written confirmations of all transactions in an account, including information needed by shareholders for personal and taxrecords. Shares in the account of each Plan participant will be held by the Plan Agent in the name of the participant, and each shareholder’s proxy will include those shares purchased pursuant to the Plan. Therewill be no brokerage charges with respect to common shares issued directly by the Fund. However, each participant will pay a per share fee of $0.02 incurred with respect to the Plan Agent’s open market purchasesin connection with the reinvestment of dividends, capital gains distributions and voluntary cash payments made by the participant. Per share fees include any applicable brokerage commissions the Plan Agent is requiredto pay.

Participants also have theoption of selling their shares through the Plan. The Plan supports two types of sales orders. Batch order sales are submitted on each market day and will be grouped with other sale requests to be sold. The price willbe the average sale price obtained by Computershare’s broker, net of fees, for each batch order and will be sold generally within 2 business days of the request during regular open market hours. Please note thatall written sales requests are always processed by Batch Order. ($10 and $0.12 per share). Market Order sales will sell at the next available trade. The shares are sold real time when they hit the market, however anavailable trade must be presented to complete this transaction. Market Order sales may only

be requested by phone at 1-800-647-0584 orusing Investor Center through www.computershare.com/buyaberdeen. ($25 and $0.12 per share).

The receipt of dividends anddistributions under the Plan will not relieve participants of any income tax that may be payable on such dividends or distributions. The Fund or the Plan Agent may terminate the Plan as applied to any voluntary cashpayments made and any dividend or distribution paid subsequent to notice of the termination sent to members of the Plan at least 30 days prior to the record date for such dividend or distribution. The Plan also may beamended by

the Fund or the Plan Agent, but (except whennecessary or appropriate to comply with applicable law or the rules or policies of the SEC or any other regulatory authority) only by mailing a written notice at least 30 days prior to the effective date to theparticipants in the Plan. All correspondence concerning the Plan should be directed to the Plan Agent by phone at 1-800-647-0584, using Investor Center through www.computershare.com/buyaberdeen or in writing to Computershare Trust Company N.A., P.O. Box 43006, Providence, RI 02940-3078.

Trustees

ToddReit, Chair
Jeffrey Bailey
Stephen Bird
Rose DiMartino
Kathleen Goetz
C. William Maher

Investment Adviser

abrdn Inc.
1900 Market Street, Suite 200
Philadelphia, PA19103

Custodian and Administrator

State Street Bank and Trust Company
One Congress Street, Suite 1
Boston, MA 02114-2016

Transfer Agent

Computershare Trust Company, N.A.
P.O. Box 43006
Providence, RI 02940-3078

Independent Registered Public Accounting Firm

KPMG LLP
1601 Market Street
Philadelphia, PA 19103

Legal Counsel

Dechert LLP
1900 K Street N.W.
Washington D.C. 20006

Investor Relations

abrdn Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
1-800-522-5465
Investor.Relations@abrdn.com

The Financial Statementsas of March 31, 2024, included in this report, were not audited and accordingly, no opinion is expressed thereon.

Notice is hereby given inaccordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may purchase, from time to time, shares of its common stock in the open market.

Shares of abrdnHealthcare Opportunities Fund are traded on the NYSEunder the symbol “THQ.” Information about the Fund’s net asset value and market price is available at www.abrdnthq.com.

This report, includingthe financial information herein, is transmitted to the shareholders of abrdn Healthcare Opportunities Fund for their general information only. It does not have regard to the specific investment objectives, financialsituation and the particular needs of any specific person. Past performance is no guarantee of future results.