Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
| SHARES | CONVERTIBLE PREFERRED AND WARRANTS (Restricted)(a) (b) - 4.6% of Net Assets | VALUE | ||||||
| Biotechnology – 3.8% | ||||||||
| 140,000 | Amphivena Therapeutics, Inc. Series B, 6.00% | $ | 2,100,000 | |||||
| 225,416 | Amphivena Therapeutics, Inc. Series C, 6.00% | 808,848 | ||||||
| 848,333 | Arkuda Therapeutics, Inc. Series A, 6.00% | 2,018,184 | ||||||
| 398,616 | Decipher Biosciences, Inc. Series II, 8.00% | 1,861,537 | ||||||
| 396,284 | Decipher Biosciences, Inc. Series III, 8.00% | 1,850,646 | ||||||
| 30,646 | Decipher Biosciences, Inc. Series IV, 8.00% | 143,117 | ||||||
| 103,675 | Dynacure Series C (c) | 2,687,610 | ||||||
| 645,834 | Hotspot Therapeutics, Inc. Series B, 6.00% | 1,550,002 | ||||||
| 3,229,167 | Invetx, Inc. Series A | 1,550,000 | ||||||
| 117,704 | Oculis SA, Series B2, 6.00% (c) | 1,106,973 | ||||||
| 41,067 | Priothera Ltd. Series A, 6.00% | 501,695 | ||||||
| 1,153,847 | Rainier Therapeutics, Inc. Series A, 6.00% | 115 | ||||||
| 668,449 | Rainier Therapeutics, Inc. Series B, 6.00% | 67 | ||||||
| 2,229,766 | Rallybio Holdings, LLC Series B | 3,100,044 | ||||||
| 345,010 | Vectivbio Holding AG Series A2, 6.00% | 397,106 | ||||||
| 19,675,944 | ||||||||
| Health Care Equipment & Supplies – 0.2% | ||||||||
| 362,887 | IO Light Holdings, Inc. Series A2 | 1,397,369 | ||||||
| Pharmaceuticals – 0.6% | ||||||||
| 2,719,854 | Curasen Therapeutics, Inc. Series A | 2,999,999 | ||||||
| TOTAL CONVERTIBLE PREFERRED
AND WARRANTS (Cost $23,450,638) | 24,073,312 | |||||||
| PRINCIPAL AMOUNT | CONVERTIBLE NOTES (Restricted)(a) (b) - 0.1% of Net Assets | |||||||
| Biotechnology – 0.1% | ||||||||
| $ | 652,728 | Rainier Therapeutics, Inc. Promissory Notes, 8.00% due 03/31/21 | 291,940 | |||||
| TOTAL
CONVERTIBLE NOTES (Cost $652,735) | 291,940 | |||||||
| SHARES | COMMON STOCKS AND WARRANTS - 91.3% of Net Assets | |||||||
| Biotechnology – 68.7% | ||||||||
| 52,739 | AC Immune SA (a) (c) | 272,661 | ||||||
| 111,776 | ACADIA Pharmaceuticals, Inc. (a) | 5,975,545 | ||||||
| 84,312 | Affimed N.V. (a) (c) | 490,696 | ||||||
| 138,469 | Alexion Pharmaceuticals, Inc. (a) | 21,634,397 | ||||||
| 60,092 | Alkermes plc (a) | 1,198,835 | ||||||
| 43,142 | Allakos, Inc. (a) | 6,039,880 | ||||||
| 15,135 | Allogene Therapeutics, Inc. (a) | 382,007 | ||||||
| 68,432 | Alnylam Pharmaceuticals, Inc. (a) | 8,894,107 | ||||||
| 291,970 | Amarin Corp. plc (a) (d) | 1,427,733 | ||||||
| 115,240 | Amgen, Inc. | 26,495,981 | ||||||
| 149,195 | Amicus Therapeutics, Inc. (a) | 3,444,913 | ||||||
| 102,111 | Apellis Pharmaceuticals, Inc. (a) | 5,840,749 | ||||||
| 32,461 | ARCA biopharma, Inc. (a) | 130,169 | ||||||
The accompanying notes are an integral part of this Schedule of Investments.
Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
| SHARES | Biotechnology – continued | VALUE | ||||||
| 18,027 | ARCA biopharma, Inc. Warrants (expiration 06/11/22, exercise price $109.82) (a) (b) | $ | 901 | |||||
| 289,336 | Ardelyx, Inc. (a) | 1,872,004 | ||||||
| 85,286 | Arena Pharmaceuticals, Inc. (a) | 6,552,523 | ||||||
| 27,928 | Argenx SE (a) (d) | 8,213,346 | ||||||
| 52,166 | Arrowhead Pharmaceuticals, Inc. (a) | 4,002,697 | ||||||
| 34,499 | Ascendis Pharma A/S (a) (d) | 5,753,743 | ||||||
| 48,919 | Atreca, Inc. (a) | 790,042 | ||||||
| 6,000 | Bellicum Pharmaceuticals, Inc. (a) | 21,180 | ||||||
| 67,462 | Biogen, Inc. (a) | 16,518,745 | ||||||
| 83,603 | BioMarin Pharmaceutical, Inc. (a) | 7,331,147 | ||||||
| 45,530 | Blueprint Medicines Corp. (a) | 5,106,190 | ||||||
| 53,779 | ChemoCentryx, Inc. (a) | 3,329,996 | ||||||
| 168,782 | Cogent Biosciences, Inc. (a) | 1,895,422 | ||||||
| 154,310 | Corbus Pharmaceuticals Holdings, Inc. (a) | 192,888 | ||||||
| 23,648 | CRISPR Therapeutics AG (a) (c) | 3,620,745 | ||||||
| 32,636 | CymaBay Therapeutics, Inc. (a) | 187,331 | ||||||
| 19,036 | Deciphera Pharmaceuticals, Inc. (a) | 1,086,385 | ||||||
| 22,667 | Denali Therapeutics, Inc. (a) | 1,898,588 | ||||||
| 21,531 | Dicerna Pharmaceuticals, Inc. (a) | 474,328 | ||||||
| 6,118 | Eidos Therapeutics, Inc. (a) | 805,006 | ||||||
| 14,732 | Esperion Therapeutics, Inc. (a) | 383,032 | ||||||
| 20,843 | Exact Sciences Corp. (a) | 2,761,489 | ||||||
| 351,690 | Exelixis, Inc. (a) | 7,058,418 | ||||||
| 81,121 | Fate Therapeutics, Inc. (a) | 7,376,333 | ||||||
| 67,921 | FibroGen, Inc. (a) | 2,519,190 | ||||||
| 53,186 | Forma Therapeutics Holdings, Inc. (a) | 1,856,191 | ||||||
| 145,858 | Galera Therapeutics, Inc. (a) | 1,492,127 | ||||||
| 29,963 | Genmab A/S (a) (d) | 1,218,296 | ||||||
| 424,275 | Gilead Sciences, Inc. | 24,718,262 | ||||||
| 132,716 | Gritstone Oncology, Inc. (a) | 522,901 | ||||||
| 33,366 | Harpoon Therapeutics, Inc. (a) | 554,209 | ||||||
| 11,056 | Incyte Corp. (a) | 961,651 | ||||||
| 37,238 | Insmed, Inc. (a) | 1,239,653 | ||||||
| 18,630 | Intercept Pharmaceuticals, Inc. (a) | 460,161 | ||||||
| 75,143 | Ionis Pharmaceuticals, Inc. (a) | 4,248,585 | ||||||
| 101,017 | Iovance Biotherapeutics, Inc. (a) | 4,687,189 | ||||||
| 223,863 | Kadmon Holdings, Inc. (a) | 929,031 | ||||||
| 28,463 | Karuna Therapeutics, Inc. (a) | 2,891,556 | ||||||
| 95,149 | Kura Oncology, Inc. (a) | 3,107,566 | ||||||
| 114,141 | Magenta Therapeutics, Inc. (a) | 894,865 | ||||||
| 99,234 | Moderna, Inc. (a) | 10,366,976 | ||||||
| 116,213 | Molecular Templates, Inc. (a) | 1,091,240 | ||||||
| 37,223 | Nektar Therapeutics (a) | 632,791 | ||||||
| 96,922 | Neurocrine Biosciences, Inc. (a) | 9,289,974 | ||||||
| 44,550 | NexGel, Inc. (a) (b) | 138 | ||||||
| 32,032 | Novavax, Inc. (a) | 3,571,888 | ||||||
| 144,434 | NuCana plc (a) (d) | 648,509 | ||||||
| 111,820 | Ovid Therapeutics, Inc. (a) | 258,304 | ||||||
The accompanying notes are an integral part of this schedule of investments.
Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
| SHARES | Biotechnology – continued | VALUE | ||||||
| 374,819 | Pieris Pharmaceuticals, Inc. (a) | $ | 937,048 | |||||
| 23,821 | Pieris Pharmaceuticals, Inc., Series A Warrants (expiration 06/08/21, exercise price $3.00) (a) (b) | 7,623 | ||||||
| 11,911 | Pieris Pharmaceuticals, Inc., Series B Warrants (expiration 06/08/21, exercise price $2.00) (a) (b) | 8,099 | ||||||
| 23,594 | Praxis Precision Medicines, Inc. (a) | 1,298,142 | ||||||
| 50,367 | Regeneron Pharmaceuticals, Inc. (a) | 24,332,801 | ||||||
| 51,250 | Sage Therapeutics, Inc. (a) | 4,433,638 | ||||||
| 64,886 | Sarepta Therapeutics, Inc. (a) | 11,062,414 | ||||||
| 37,492 | Scholar Rock Holding Corp. (a) | 1,819,487 | ||||||
| 104,281 | Seagen, Inc. (a) | 18,263,774 | ||||||
| 212,991 | Sutro Biopharma, Inc. (a) | 4,624,035 | ||||||
| 41,924 | TG Therapeutics, Inc. (a) | 2,180,886 | ||||||
| 248,575 | Trillium Therapeutics, Inc. (a) (c) | 3,656,538 | ||||||
| 29,770 | Ultragenyx Pharmaceutical, Inc. (a) | 4,121,061 | ||||||
| 42,765 | uniQure N.V. (a) (c) | 1,545,099 | ||||||
| 20,511 | United Therapeutics Corp. (a) | 3,113,365 | ||||||
| 375,000 | Vectivbio Holding AG (Restricted) (a) (b) | 296,250 | ||||||
| 97,100 | Vertex Pharmaceuticals, Inc. (a) | 22,948,614 | ||||||
| 46,595 | Xencor, Inc. (a) | 2,032,940 | ||||||
| 23,842 | Y-mAbs Therapeutics, Inc. (a) | 1,180,417 | ||||||
| 11,502 | Zai Lab Ltd. (a) (d) | 1,556,681 | ||||||
| 28,012 | Zymeworks, Inc. (a) (c) | 1,323,847 | ||||||
| 358,364,164 | ||||||||
| Drug Discovery Technologies(a) – 0.1% | ||||||||
| 51,160 | ImmunoGen, Inc. | 329,982 | ||||||
| Health Care Equipment & Supplies(a) – 3.5% | ||||||||
| 22,683 | Axonics Modulation Technologies, Inc. | 1,132,335 | ||||||
| 130,000 | Cercacor Laboratories, Inc. (Restricted) (b) | 1,714,706 | ||||||
| 36,049 | Guardant Health, Inc. | 4,645,995 | ||||||
| 8,329 | IDEXX Laboratories, Inc. | 4,163,417 | ||||||
| 5,042 | Inogen, Inc. | 225,277 | ||||||
| 33,786 | NovoCure Ltd. | 5,846,329 | ||||||
| 17,728,059 | ||||||||
| Health Care Providers & Services(a) – 0.2% | ||||||||
| 148,148 | InnovaCare, Inc. Escrow Shares (Restricted) (b) | 105,496 | ||||||
| 5,822 | Medpace Holdings, Inc. | 810,423 | ||||||
| 915,919 | ||||||||
| Healthcare Services(a) – 0.8% | ||||||||
| 62,372 | Syneos Health, Inc. | 4,249,404 | ||||||
| Life Sciences Tools & Services – 8.6% | ||||||||
| 105,253 | Adaptive Biotechnologies Corp. (a) | 6,223,610 | ||||||
| 16,541 | Bio-Techne Corp. | 5,252,595 | ||||||
| 71,882 | Illumina, Inc. (a) | 26,596,340 | ||||||
| 53,405 | PRA Health Sciences, Inc. (a) | 6,699,123 | ||||||
| 44,771,668 | ||||||||
The accompanying notes are an integral part of this schedule of investments.
Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
| SHARES | Pharmaceuticals – 9.2% | VALUE | ||||||
| 20,403 | Aerie Pharmaceuticals, Inc. (a) | $ | 275,645 | |||||
| 34,619 | Arvinas, Inc. (a) | 2,940,192 | ||||||
| 96,486 | Aurinia Pharmaceuticals, Inc. (a) (c) | 1,334,401 | ||||||
| 95,101 | Avadel Pharmaceuticals plc (a) (d) | 635,275 | ||||||
| 9,784 | Axsome Therapeutics, Inc. (a) | 797,102 | ||||||
| 18,008 | Bristol-Myers Squibb Co. | 1,117,036 | ||||||
| 399,550 | Bristol-Myers Squibb Co., CVR 03/31/21 (a) (e) | 275,729 | ||||||
| 165,330 | Clearside Biomedical, Inc. (a) | 453,004 | ||||||
| 29,100 | Endo International plc (a) (c) | 208,938 | ||||||
| 40,585 | Heron Therapeutics, Inc. (a) | 858,982 | ||||||
| 133,689 | Horizon Therapeutics plc (a) | 9,779,350 | ||||||
| 118,880 | Intra-Cellular Therapies, Inc. (a) | 3,780,384 | ||||||
| 25,203 | Jazz Pharmaceuticals plc (a) | 4,159,755 | ||||||
| 4,060 | Madrigal Pharmaceuticals, Inc. (a) | 451,350 | ||||||
| 77,794 | Milestone Pharmaceuticals, Inc. (a) (c) | 521,220 | ||||||
| 28,691 | Mirati Therapeutics, Inc. (a) | 6,301,691 | ||||||
| 12,440 | Reata Pharmaceuticals, Inc. (a) | 1,537,833 | ||||||
| 66,856 | Revance Therapeutics, Inc. (a) | 1,894,699 | ||||||
| 34,880 | Spectrum Pharmaceuticals, Inc. (a) | 118,941 | ||||||
| 14,218 | Tetraphase Pharmaceuticals, Inc. CVR (a) (e) | 2,844 | ||||||
| 141,641 | Theravance Biopharma, Inc. (a) (c) | 2,516,961 | ||||||
| 41,021 | Turning Point Therapeutics, Inc. (a) | 4,998,409 | ||||||
| 315,800 | Verona Pharma plc (a) (d) | 2,210,600 | ||||||
| 371,622 | Verona Pharma plc Warrants (expiration 04/27/22, exercise price $2.67) (a) (b) (c) | 21,395 | ||||||
| 162,481 | VYNE Therapeutics, Inc. (a) | 256,720 | ||||||
| 37,281 | Zogenix, Inc. (a) | 745,247 | ||||||
| 48,193,703 | ||||||||
| Special Purpose Acquisition Company – 0.2% | ||||||||
| 78,403 | Helix Acquisition Corp. (a) | 849,104 | ||||||
| TOTAL
COMMON STOCKS AND WARRANTS (Cost $316,852,289) | 475,402,003 | |||||||
| PRINCIPAL AMOUNT | SHORT-TERM INVESTMENT - 2.4% of Net Assets | |||||||
| $ | 12,566,000 | Repurchase Agreement, Fixed Income Clearing Corp., repurchase value $12,566,000, 0.00%, dated 12/31/20, due 01/04/21 (collateralized by U.S. Treasury Note 2.38%, due 03/15/22, market value $12,817,390) | 12,566,000 | |||||
| TOTAL
SHORT-TERM INVESTMENT (Cost $12,566,000) | 12,566,000 | |||||||
| TOTAL INVESTMENTS BEFORE MILESTONE INTERESTS - 98.4% (Cost $353,521,662) | 512,333,255 | |||||||
| INTERESTS | MILESTONE INTERESTS (Restricted)(a) (b) - 1.8% of Net Assets | |||||||
| Biotechnology – 0.3% | ||||||||
| 1 | Therachon Milestone Interest | 1,516,217 | ||||||
The accompanying notes are an integral part of this schedule of investments.
Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
| INTERESTS | Health Care Equipment & Supplies – 0.0% | VALUE | ||||||
| 1 | Therox Milestone Interest | $ | 1,727 | |||||
| Pharmaceuticals – 1.5% | ||||||||
| 1 | Afferent Milestone Interest | 280,576 | ||||||
| 1 | Ethismos Research Milestone Interest | 0 | ||||||
| 1 | Impact Biomedicines Milestone Interest | 3,461,720 | ||||||
| 1 | Neurovance Milestone Interest | 3,973,536 | ||||||
| 7,715,832 | ||||||||
| TOTAL
MILESTONE INTERESTS (Cost $4,994,233) | 9,233,776 | |||||||
| NUMBER OF CONTRACTS (100 SHARES EACH)/NOTIONAL AMOUNT ($) | CALL OPTION CONTRACTS PURCHASED - 0.0% of Net Assets | |||||||
| 87/3,045,000 | Biogen, Inc. Mar21 350 Call | 46,110 | ||||||
| TOTAL
CALL OPTION CONTRACTS PURCHASED (Premiums paid $173,308) | 46,110 | |||||||
| TOTAL
INVESTMENTS - 100.2% (Cost $358,689,203) | 521,613,141 | |||||||
| OTHER LIABILITIES IN EXCESS OF ASSETS - (0.2)% | (874,839 | ) | ||||||
| NET ASSETS - 100% | $ | 520,738,302 | ||||||
| (a) | Non-income producing security. | |
| (b) | Security fair valued using significant unobservable inputs. See Investment Valuation and Fair Value Measurements. | |
| (c) | Foreign security. | |
| (d) | American Depository Receipt | |
| (e) | Contingent Value Right | |
The accompanying notes are an integral part of this schedule of investments.
Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
Investment Valuation
Shares of publicly traded companies listed on national securities exchanges or trading in the over-the-counter market are typically valued at the last sale price, as of the close of trading, generally 4 p.m., Eastern Time. The Board of Trustees of the Fund (the Trustees) has established and approved fair valuation policies and procedures with respect to securities for which quoted prices may not be available or which do not reflect fair value. Convertible, corporate and government bonds are valued using a third-party pricing service. Convertible bonds are valued using this pricing service only on days when there is no sale reported. Restricted securities of companies that are publicly traded are typically valued based on the closing market quote on the valuation date adjusted for the impact of the restriction as determined in good faith by Tekla Capital Management LLC (the Adviser) also using fair valuation policies and procedures approved by the Trustees described below. Non-exchange traded warrants of publicly traded companies are generally valued using the Black-Scholes model, which incorporates both observable and unobservable inputs. Short-term investments with a maturity of 60 days or less are generally valued at amortized cost, which approximates fair value.
Convertible preferred shares, warrants or convertible note interests in private companies, milestone interests, and other restricted securities, as well as shares of publicly traded companies for which market quotations are not readily available, such as stocks for which trading has been halted or for which there are no current day sales, or which do not reflect fair value, are typically valued in good faith, based upon the recommendations made by the Adviser pursuant to fair valuation policies and procedures approved by the Trustees.
The Adviser has a Valuation Sub-Committee comprised of senior management which reports to the Valuation Committee of the Board at least quarterly. Each fair value determination is based on a consideration of relevant factors, including both observable and unobservable inputs. Observable and unobservable inputs the Adviser considers may include (i) the existence of any contractual restrictions on the disposition of securities; (ii) information obtained from the company, which may include an analysis of the company’s financial statements, products, intended markets or technologies; (iii) the price of the same or similar security negotiated at arm’s length in an issuer’s completed subsequent round of financing; (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies; or (v) a probability and time value adjusted analysis of contractual terms. Where available and appropriate, multiple valuation methodologies are applied to confirm fair value. Significant unobservable inputs identified by the Adviser are often used in the fair value determination. A significant change in any of these inputs may result in a significant change in the fair value measurement. Due to the uncertainty inherent in the valuation process, such estimates of fair value may differ significantly from the values that would have been used had a ready market for the investments existed, and differences could be material. Additionally, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different from the valuations used at the date of this schedule of investments.
Federal Income Tax Cost
At December 31, 2020, the cost of securities for Federal income tax purposes was $358,689,251. The net unrealized gain on securities held by the Fund was $162,923,890, including gross unrealized gain of $192,706,142 and gross unrealized loss of $29,782,252.
Fair Value Measurements
The Fund uses a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels. Level 1 includes quoted prices in active markets for identical investments. Level 2 includes prices determined using other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.). The independent pricing vendor may value bank loans and debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, and/or other methodologies designed to identify the market value for such securities and such securities are considered Level 2 in the fair value hierarchy. Level 3 includes prices determined using significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). These inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
For the period ended December 31, 2020, there were no transfers between levels.
The following is a summary of the levels used as of December 31, 2020 to value the Fund’s net assets.
| Assets at Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Convertible Preferred and Warrants | ||||||||||||||||
| Biotechnology | $ | - | $ | - | $ | 19,675,944 | $ | 19,675,944 | ||||||||
| Health Care Equipment & Supplies | - | - | 1,397,369 | 1,397,369 | ||||||||||||
| Pharmaceuticals | - | - | 2,999,999 | 2,999,999 | ||||||||||||
| Convertible Notes | ||||||||||||||||
| Biotechnology | - | - | 291,940 | 291,940 | ||||||||||||
| Common Stocks and Warrants | ||||||||||||||||
| Biotechnology | 358,051,153 | - | 313,011 | 358,364,164 | ||||||||||||
| Drug Discovery Technologies | 329,982 | - | - | 329,982 | ||||||||||||
| Health Care Equipment & Supplies | 16,013,353 | - | 1,714,706 | 17,728,059 | ||||||||||||
| Health Care Providers & Services | 810,423 | - | 105,496 | 915,919 | ||||||||||||
| Healthcare Services | 4,249,404 | - | - | 4,249,404 | ||||||||||||
| Life Sciences Tools & Services | 44,771,668 | - | - | 44,771,668 | ||||||||||||
| Pharmaceuticals | 48,169,464 | 2,844 | 21,395 | 48,193,703 | ||||||||||||
| Special Purpose Acquisition Company | 849,104 | - | - | 849,104 | ||||||||||||
| Short-term Investment | - | 12,566,000 | - | 12,566,000 | ||||||||||||
| Milestone Interests | ||||||||||||||||
| Biotechnology | - | - | 1,516,217 | 1,516,217 | ||||||||||||
| Health Care Equipment & Supplies | - | - | 1,727 | 1,727 | ||||||||||||
| Pharmaceuticals | - | - | 7,715,832 | 7,715,832 | ||||||||||||
| Other Assets | - | - | 91,694 | 91,694 | ||||||||||||
| Total | $ | 473,244,551 | $ | 12,568,844 | $ | 35,845,330 | $ | 521,658,725 | ||||||||
| Other Financial Instruments | ||||||||||||||||
| Assets | ||||||||||||||||
| Call Options Contracts Purchased | $ | 46,110 | $ | - | $ | - | $ | 46,110 | ||||||||
| Total | $ | 46,110 | $ | - | $ | - | $ | 46,110 | ||||||||
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
| Investments in securities | Balance as of September 30, 2020 | Net Realized gain (loss) and change in unrealized appreciation (depreciation) | Cost of purchases and conversions | Proceeds from sales and conversions | Net transfers into (out of) Level 3 | Balance as of December 31, 2020 | ||||||||||||||||||
| Convertible Preferred and Warrants | ||||||||||||||||||||||||
| Biotechnology | $ | 15,928,255 | $ | 2,229,332 | $ | 1,518,357 | $ | - | $ | - | $ | 19,675,944 | ||||||||||||
| Health Care Equipment & Supplies | 1,397,369 | - | - | - | - | 1,397,369 | ||||||||||||||||||
| Pharmaceuticals | 2,999,999 | - | - | - | - | 2,999,999 | ||||||||||||||||||
| Convertible Notes | ||||||||||||||||||||||||
| Biotechnology | 295,378 | (3,438 | ) | - | - | - | 291,940 | |||||||||||||||||
| Common Stocks and Warrants | ||||||||||||||||||||||||
| Biotechnology | 329,220 | (16,864 | ) | 655 | - | - | 313,011 | |||||||||||||||||
| Health Care Equipment & Supplies | 1,331,738 | 382,968 | - | - | - | 1,714,706 | ||||||||||||||||||
| Health Care Providers & Services | 105,467 | 29 | - | - | - | 105,496 | ||||||||||||||||||
| Pharmaceuticals | 49,631 | (28,236 | ) | - | - | - | 21,395 | |||||||||||||||||
| Milestone Interests | ||||||||||||||||||||||||
| Biotechnology | 1,515,794 | 423 | - | - | - | 1,516,217 | ||||||||||||||||||
| Health Care Equipment & Supplies | 3,407 | (1,680 | ) | - | - | - | 1,727 | |||||||||||||||||
| Pharmaceuticals | 7,711,390 | 4,442 | - | - | - | 7,715,832 | ||||||||||||||||||
| Other Assets | 91,662 | - | 32 | - | - | 91,694 | ||||||||||||||||||
| $ | 31,759,310 | $ | 2,566,976 | $ | 1,519,044 | $ | - | $ | - | $ | 35,845,330 | |||||||||||||
| Net change in unrealized appreciation (depreciation) from investments still held as of December 31, 2020 | $ | 2,566,976 | ||||||||||||||||||||||
The following is a quantitative disclosure about significant unobservable inputs used in the determination of the fair value of Level 3 assets.
| Fair
Value at December 31, 2020 | Valuation
Technique | Unobservable
Input | Range
(Weighted Average) | ||||||||
| Common Stock and Warrants | $ | 1,752,724 | Income approach, Black-Scholes | Discount for lack of marketability | 20.00%-50.00% (20.71%) | ||||||
| 105,496 | Probability adjusted value | Probability of events Timing of events | 20.00% (20.00%) 1.00-3.00 (2.00) years | ||||||||
| 296,388 | Market approach | (a) | N/A | ||||||||
| Convertible Preferred and Warrants | 172,629 | Probability adjusted value | Probability of events Timing of events | 20.00% (20.00%) 0.50 (0.50) years | |||||||
Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
| 10,258,926 | Market approach | (a) | N/A | ||||||||
| 13,641,757 | Recent transaction | (b) | N/A | ||||||||
| Convertible Notes | 291,940 | Probability adjusted value | Probability of events Timing of events | 0.00%-99.00% (35.28%) 0.25-14.50 (2.46) years | |||||||
| Milestone Interests | 9,233,776 | Probability adjusted value | Probability of events Timing of events | 10.00%-100.00% (60.06%) 0.25-16.25 (3.66) years | |||||||
| 0 | Market approach | (a) | N/A | ||||||||
| Other Assets | 91,694 | Probability adjusted value | Probability of events Timing of events | 20.00%-90.00% (20.46%) 0.25-6.25 (0.29) years | |||||||
| $ | 35,845,330 |
| (a) | There is no quantitative information to provide as this method of measure is investment specific. |
| (b) | The valuation technique used as a basis to approximate fair value of these investments is based on subsequent financing rounds. |
Private Companies and Other Restricted Securities
The Fund may invest in private companies and other restricted securities if these securities would currently comprise 40% or less of net assets. The value of these securities represented 7% of the Fund’s net assets at December 31, 2020.
At December 31, 2020, the Fund had a commitment of $3,564,526 relating to additional investments in three private companies.
The following table details the acquisition date, cost, carrying value per unit, and value of the Fund’s private companies and other restricted securities at December 31, 2020. The Fund on its own does not have the right to demand that such securities be registered.
| Security (#) | Acquisition Date | Cost | Carrying Value per Unit | Value | |||||||||||||
| Afferent Milestone Interest | 07/27/16 | $ | 161,872 | $ | 280,576.00 | $ | 280,576 | ||||||||||
| Amphivena Therapeutics, Inc. | |||||||||||||||||
| Series B Cvt. Pfd | 07/17/17 | 2,101,222 | 15.00 | 2,100,000 | |||||||||||||
| Series C Cvt. Pfd | 12/10/18 | 808,848 | 3.59 | 808,848 | |||||||||||||
| Arkuda Therapeutics, Inc. Series A Cvt. Pfd | 05/16/19, 04/02/20 | 2,018,184 | 2.38 | 2,018,184 | |||||||||||||
| Cercacor Laboratories, Inc. Common | 03/31/98 | † | 0 | 13.19 | 1,714,706 | ||||||||||||
| Curasen Therapeutics, Inc. Series A Cvt. Pfd | 09/18/18, 01/07/20 | 2,999,999 | 1.10 | 2,999,999 | |||||||||||||
| Decipher Biosciences, Inc. | |||||||||||||||||
| Series II Cvt. Pfd | 03/29/19 | 1,846,993 | 4.67 | 1,861,537 | |||||||||||||
| Series III Cvt. Pfd | 03/29/19 | 417,887 | 4.67 | 1,850,646 | |||||||||||||
| Series IV Cvt. Pfd | 05/14/20 | 66,534 | 4.67 | 143,117 | |||||||||||||
| Dynacure Series C Cvt. Pfd | 04/21/20 | 2,468,329 | 25.92 | 2,687,610 | |||||||||||||
| Ethismos Research Milestone Interest | 10/31/17 | 0 | 0.00 | 0 | |||||||||||||
| Hotspot Therapeutics, Inc. Series B Cvt. Pfd | 04/22/20 | 1,550,002 | 2.40 | 1,550,002 | |||||||||||||
| Impact Biomedicines Milestone Interest | 07/20/10 | 0 | 3,461,720.00 | 3,461,720 | |||||||||||||
| InnovaCare, Inc. Escrow Shares Common | 12/21/12 | † | 95,673 | 0.71 | 105,496 | ||||||||||||
| Invetx, Inc. Series A Cvt. Pfd | 08/06/20 | 1,550,000 | 0.48 | 1,550,000 | |||||||||||||
| IO Light Holdings, Inc. Series A2 Cvt. Pfd | 04/30/20 | † | 1,394,759 | 3.85 | 1,397,369 | ||||||||||||
| Neurovance Milestone Interest | 03/20/17 | 3,417,500 | 3,973,536.00 | 3,973,536 | |||||||||||||
| Oculis SA, Series B2 Cvt. Pfd | 01/16/19 | 990,902 | 9.40 | 1,106,973 | |||||||||||||
Tekla Life Sciences Investors
SCHEDULE OF INVESTMENTS
December 31, 2020
(Unaudited)
| Priothera Ltd. Series A Cvt. Pfd | 10/07/20 | 483,215 | 12.22 | 501,695 | |||||||||||||
| Rainier Therapeutics, Inc. | |||||||||||||||||
| Series A Cvt. Pfd | 01/19/16, 10/24/16 | 750,652 | 0.00 | †† | 115 | ||||||||||||
| Series B Cvt. Pfd | 03/03/17 | 500,091 | 0.00 | †† | 67 | ||||||||||||
| Cvt. Promissory Notes | 01/30/19 | 189,675 | 0.00 | 0 | |||||||||||||
| Cvt. Promissory Notes | 03/28/19 | 189,674 | 0.00 | 0 | |||||||||||||
| Cvt. Promissory Notes | 07/16/19 | 218,635 | 106.79 | 233,473 | |||||||||||||
| Cvt. Promissory Notes | 10/07/19 | 54,751 | 106.79 | 58,467 | |||||||||||||
| Rallybio Holdings, LLC Series B Cvt. Pfd | 03/27/20 | 3,105,343 | 1.39 | 3,100,044 | |||||||||||||
| Therachon Milestone Interest | 07/01/19 | 1,409,779 | 1,516,217.00 | 1,516,217 | |||||||||||||
| Therox Milestone Interest | 06/18/19 | 5,082 | 1,727.00 | 1,727 | |||||||||||||
| Vectivbio Holding AG | |||||||||||||||||
| Common | 07/01/19 | † | 293,249 | 0.79 | 296,250 | ||||||||||||
| Series A2 Cvt. Pfd | 09/02/20 | 397,678 | 1.15 | 397,106 | |||||||||||||
| $ | 29,486,528 | $ | 35,715,480 |
(#) See Schedule of Investments and corresponding footnotes for more information on each issuer.
† Interest received as part of a corporate action for a previously owned security.
†† Carrying value per unit is greater than $0.00 but less than $0.01.