Company: HQL
Filing Date: 2025-12-08
Form Type: N-CSR
Source: 0001104659-25-119341
Chunk: 8

Company: abrdn Life Sciences Investors
Filing Date: 2025-12-08
Form: N-CSR
Chunk 8
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ification so that fundamentals—not headlines—drive outcomes over a full cycle. We used call–option 3writing/overwriting 4, 5selectively to generate incremental income—particularly around clinical–event

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| 1 | Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be                
 lower or higher than the performance quoted. Net asset value return data include investment management fees, custodial charges and administrative fees (such as Director and legal fees) and assumes the reinvestment of 
 all distributions.                                                                                                                                                                                                       |

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| 2 | Net asset value (“NAV”) – A key measure of the value of a company, fund or trust – the total value of assets less liabilities, divided by the number of shares. |

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| 3 | Call option – A contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a set period. |

| 4 | abrdn Life Sciences Investors |

Report of the Investment Adviser (unaudited) (continued) volatility—which was additive to returns. As always, options can cap upside in strong rallies and introduce assignment risk if positions are called away; we calibrate use to the catalyst calendar and valuation. Venture is a differentiating feature of HQL and a deliberate source of long–duration optionality. Our philosophy: deploy modest, milestone–driven capital into differentiated science nearing clinical validation, with disciplined pacing, syndicate quality, and valuation awareness. Venture outcomes are expected to be episodic; the goal is to compound selectively through cycles without allowing single assets to dominate risk. During the year, activity was measured and not a material driver of overall performance. We invested in Crystalys Therapeutics (Dotinurad for gout/hyperuricemia) and participated in Third Arc Bio (multi–specific antibodies for oncology/immunology), and we added venture stakes in Nuvig Therapeutics and Aviceda Therapeutics, as well as a new investment in Abcuro—each sized to risk with clear paths to value via data, partnering, or regulatory progress. Portfolio Activity We introduced several new holdings in late 2024, including Halozyme Therapeutics, Syndax Pharmaceuticals, Allogene Therapeutics, Personalis, Vir Biotechnology, Travere, Dyne Therapeutics, and Cargo Therapeutics.