BOSTON--(BUSINESS WIRE)--On January 31, 2019, Tekla Healthcare Opportunities Fund paid a monthly distribution of $0.1125 per share. It is currently estimated that this distribution is derived from 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 $6,684,425, of which $17,384,877 represents net unrealized appreciation of portfolio securities.
The following table sets forth the estimated amounts of the current distribution, paid on January 31, 2019, 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.
Total Cumulative Distributions for the
Fiscal Year to Date1
of the Total Cumulative Distributions for the
Fiscal Year to Date1
|Net Investment Income||$0.0000||0%||$0.0168||4%|
|Net Realized ST Cap Gains||$0.0000||0%||$0.0068||2%|
|Net Realized LT Cap Gains||$0.0000||0%||$0.0657||14%|
|Return of Capital or Other Capital Source||$0.1125||100%||$0.3607||80%|
|TOTAL (per common share):||$0.1125||100%||$0.4500||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 inception through December 31, 20182||7.25%|
|Annualized current distribution rate expressed as a percentage of NAV as of December 31, 2018||7.35%|
|Cumulative total return at NAV for the fiscal year, through December 31, 20183||-11.30%|
|Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of December 31, 20181||2.45%|
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.
IMPORTANT CLARIFICATION IN FOREIGN SECURITY INVESTMENT DEFINITION
Effective immediately, the Fund’s investment strategy with respect to foreign securities is as follows:
Foreign Securities. The Trust will not invest more than 20% of its Managed Assets as measured at the time of investment in non-U.S. securities, which may include securities denominated in U.S. dollars or in non-U.S. currencies or multinational currency units. The Trust may invest in non-U.S. securities of so-called emerging market issuers. For purposes of the Fund, Tekla Capital Management LLC, as the Fund’s investment adviser determines, in its discretion, whether a company is a non-U.S. company using an independent analysis of one or more classifications assigned by third parties. These classifications are generally based on a number of criteria, including a company’s country of domicile, the primary stock exchange on which a company’s securities trade, the location from which the majority of a company’s revenue is derived, and a company’s reporting currency. Non-U.S. securities markets generally are not as developed or efficient as those in the United States. Securities of some non-U.S. issuers are less liquid and more volatile than securities of comparable U.S. issuers. Similarly, volume and liquidity in most non-U.S. securities markets are less than in the United States and, at times, price volatility can be greater than in the United States.
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 $2.7 billion of assets under management as of December 31, 2018. 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, 2018.
2 Inception date was July 29, 2014, which is the date of the initial public offering.
3 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, 2018 through December 31, 2018.