Company: HQL
Filing Date: 2025-12-08
Form Type: N-CSR
Source: 0001104659-25-119341
Chunk: 10

Company: abrdn Life Sciences Investors
Filing Date: 2025-12-08
Form: N-CSR
Chunk 10
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ies, Natera, BeiGene, Avantor, 89bio, Moderna, AstraZeneca, and Marinus Pharmaceuticals. Meanwhile, we sold Incyte Corporation, reallocating capital given the appearance of a maturing growth profile and increased competitive pressures in its core business. We also disposed of Medpace Holdings, a clinical research organization, after a period of strong share-price performance. We sold our holding in Arvinas after a reassessment of the company’s risk and competitive position in the targeted protein degradation field. We also sold smaller biotechnology positions with matured theses or liquidity concerns, increasing exposure to late-stage pipelines and diversifying the therapeutic mix. The monthly distribution 6reflects the Fund’s current policy to provide shareholders with a relatively stable cash flow per share. During the 12-month period ended September 30, 2025, the distributions comprised ordinary income, capital gains, and a return of capital. Outlook and Strategy Uncertainty continues to cloud the macroeconomic, geopolitical, and market outlook. A combination of shifting fiscal and monetary policies along with structural changes in global trade dynamics has created an increasingly volatile market environment. Much of the focus remains on the Trump administration’s tariff strategy and its

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| 4 | Call-option writing – Selling a call option, which obligates the seller to sell the asset at the strike price if the option is exercised. |

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| 5 | Overwriting – Selling a call option on an asset the seller does not expect to reach the strike price before expiration, aiming to collect the premium without exercise. |

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| 6 | Distribution – The payment of any income, capital gains, or return of capital by a fund. |

| abrdn Life Sciences Investors | 5 |

Report of the Investment Adviser (unaudited) (concluded) potential implications for economic growth and inflation. However, the broader macroeconomic backdrop is further complicated by labor market data revisions, proposed tax cuts, widening budget deficits, evolving interest-rate policy, healthcare reform, and a range of other policy initiatives that may have both intended and unintended consequences. Given the rapidly evolving landscape, market participants are struggling to build meaningful conviction around the trajectory of both domestic and international economies. With policy and macro variables still in play, we believe relative valuation across many parts of biotech remains attractive versus the broader equity market after a multi–year de–rating—particularly within innovation–rich SMID caps where milestones can unlock disproportionate value. As