Tekla Healthcare Opportunities Fund Paid Distribution

Rhea-AI Summary

The Tekla Healthcare Opportunities Fund (NYSE: THQ) announced a monthly distribution of $0.1125 per share on October 30, 2020. This payout is primarily derived from net investment income and a return of capital, which may fluctuate based on future gains and losses. The current fund's portfolio includes net unrealized appreciation of approximately $60.7 million, against net realized losses. For the fiscal year, the annualized distribution rate is 6.66% based on NAV, with a cumulative total return at NAV of 16.30% year-to-date.

Positive

• Monthly distribution of $0.1125 per share reflects consistent income generation.
• Annualized distribution rate of 6.66% indicates strong performance relative to NAV.
• Cumulative total return at NAV for the fiscal year is 16.30%, showcasing solid returns.

Negative

• Distribution includes a significant return of capital (88%), which may not reflect true investment performance.

BOSTON--(BUSINESS WIRE)--On October 30, 2020, Tekla Healthcare Opportunities Fund paid a monthly distribution of $0.1125 per share. It is currently estimated that this distribution is derived from net investment income and return of capital or other capital source. The composition of this and subsequent distributions may vary from month to month because it may be materially impacted by future realized gains and losses on securities. The aggregate of the net unrealized appreciation of portfolio securities and net realized losses on sale of securities is $58,567,815, of which $60,738,359 represents net unrealized appreciation of portfolio securities.

The following table sets forth the estimated amounts of the current distribution, paid on October 30, 2020, and the cumulative distributions paid this fiscal year-to-date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you have invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income’. All amounts are expressed per common share.

	Current Distribution	Percentage Breakdown of Current Distribution	Total Cumulative Distributions for the Fiscal Year to Date1	Percentage Breakdown of the Total Cumulative Distributions for the Fiscal Year to Date1
Net Investment Income	$0.0133	12%	$0.0133	12%
Net Realized ST Cap Gains	$0.0000	0%	$0.0000	0%
Net Realized LT Cap Gains	$0.0000	0%	$0.0000	0%
Return of Capital or Other Capital Source	$0.0992	88%	$0.0992	88%
TOTAL (per common share):	$0.1125	100%	$0.1125	100%

The table below includes information relating to the Fund’s performance based on its NAV for certain periods.

Average annual return at NAV for the period from September 30, 2015 through September 30, 2020	10.13%
Annualized current distribution rate expressed as a percentage of NAV as of September 30, 2020	6.66%
Cumulative total return at NAV for the fiscal year, through September 30, 20202	16.30%
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of September 30, 20201	0.55%

You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s managed distribution policy.

The amounts and sources of distributions reported in this press release are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Tekla Healthcare Opportunities Fund (NYSE: THQ) is a closed-end fund that invests in companies in the healthcare industry.

Tekla Capital Management LLC, the Fund’s investment adviser, is a Boston, MA based healthcare-focused investment manager with approximately $3.1 billion of assets under management as of September 30, 2020. Tekla also serves as investment adviser to Tekla Healthcare Investors (NYSE: HQH), Tekla Life Sciences Investors (NYSE: HQL) and Tekla World Healthcare Fund (NYSE: THW), closed-end funds that invest in companies in the healthcare and life sciences industries. Information regarding the Funds and Tekla Capital Management LLC can be found at www.teklacap.com.

Please contact Destra Capital Advisors, the Fund’s marketing and investor support services agent, at THQ@destracapital.com or call (877) 855-3434 if you have any questions regarding THQ.

1 The Fund’s current fiscal year began on October 1, 2020.
2 Cumulative total return at NAV is the percentage change in the Fund’s NAV and includes all distributions and assumes the reinvestment of those distributions for the period of September 30, 2019 through September 30, 2020.