Tekla Healthcare Investors Pays Distribution

BOSTON, MA, June 30, 2015-- On June 30, 2015, Tekla Healthcare Investors paid a quarterly stock distribution of $0.68 per share. It is currently estimated that $0.2380 of this distribution is derived from short-term capital gains and $0.4420 is derived from long-term capital gains. The composition of this and subsequent distributions may vary from quarter to quarter 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 gains on sale of securities is $ 669,705,916, of which $ 563,757,597 represents net unrealized appreciation of portfolio securities.

The following table sets forth the estimated amounts of the current distribution, paid June 30, 2015, 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. All amounts are expressed per common share.

 Current DistributionPercentage Breakdown of Current DistributionTotal Cumulative Distributions for the Fiscal Year to Date1Percentage Breakdown of the Total Cumulative Distributions for the Fiscal Year to Date1
Net Investment Income  $0.0000  0%  $0.0000  0%
Net Realized ST Cap Gains  $0.2380  35%  $0.3325  18%
Net Realized LT Cap Gains  $0.4420  65%  $1.5675  82%
Return of Capital or Other Capital Source  $0.0000  0%  $0.0000  0%
Total (Per Common Share)  $0.6800  100%  $1.9000  100%


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

Average annual total return at NAV for the period from February 28, 2010 through April 30, 2015 26.03%
Annualized current distribution rate expressed as a percentage of NAV as of April 30, 2015 8.21%
Cumulative total return at NAV for the fiscal year, through April 30, 2015² 16.90%
umulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of April 30, 2015


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 plan.

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 Investors (NYSE: HQH) 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 $3.4 billion of assets under management as of June 30, 2015. Tekla also serves as investment adviser to Tekla Life Sciences Investors (NYSE: HQL) Tekla Healthcare Opportunities Fund (NYSE: THQ) and Tekla World Healthcare Fund (NYSE: THW), closed-end funds that invest in companies in the life sciences and healthcare industries.

For additional information please visit www.teklacap.com or call (617) 772-8500.

¹ The Fund’s current fiscal year began on October 1, 2014.
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, 2014 throughApril 30, 2015