The closing price for NTHEX on 3/28/2024 was $3.66

Advisors

NORTHEAST INVESTORS TRUST

FUND FACTS k12/31/2023
Ticker NTHEX
CUSIP 664210101
Inception March 1, 1950
Load/12b-1 Fee None
Dividends Quarterly
Expense Ratio a/o 9/30/2023 * 2.26% (*includes .06% interest expense and commitment fee)
Number of Holdings 45
Total Net Assets $136,288,199
Current Price a/o 12/31/2023 $3.63
 

Objective

The Trust is a high-yield bond fund whose primary objective is the production of income.

Overview

The Trust focuses on marketable securities of established companies that are believed to provide reasonable income and, where consistent with the primary objective, may potentially have capital appreciation. This includes bonds, preferred stocks, dividend paying common stocks, securities convertible into common stocks and securities with warrants attached.

Style

Fixed income, long term value investing

Approach

-Buy & Hold – Know Investments, Avoid “Bandwagon” investing
-Quantitatively Driven – Concentrated Positions, Occasional Cyclical Purchases
-Industry Assessment – Hard Assets, Demonstrated Cash Flows, Regulatory Issues
-Capital Structure Analysis – Experience in Distressed Security Analysis, Underweight Holdco / Dividend Deals
-Experienced Hands – On Portfolio Management – Managers and
Trustees are significant shareholders
-Limited International Exposure

Portfolio Management

Bruce H. Monrad – Chairman and Portfolio Manager (32 Years).  Chapin P. Mechem-Co-Portfolio Manager.

Risks

The Trust invests in lower rated debt securities which may be subject to increased market volatility based on factors such as: the ability of an issuer to make current interest payments, the potential for principal loss if an issuer declares bankruptcy, and the potential difficulty in disposing of certain securities in a timely manner at a desired price and therefore can present an increased risk of investment loss.

Dividends

Quarterly

Investing With Us

Our fund is available to retail and institutional investors. Many financial advisors and planners invest in our fund for their clients. The Trust is available on many self-directed brokerage platforms, mutual fund clearing platforms and with various company retirement plans.

RISK METRICS (3-Year) ^ 12/31/2023
Beta 0.48
R-Squared 67%
Upside Capture 71%
Downside Capture 38%
Standard Deviation 4.93
TOP TEN SECTORS (% of NET ASSETS) a/o 12/31/2023
1. Energy & Natural Resource 13%
2. Tobacco 9%
3. Metals & Mining 7%
4. Technology 7%
5. Building Products 7%
6. Oil & Gas Drilling 6%
7. Food Processing 6%
8. Diversified Chemical 5%
9. Industrial Svc./Mfg. 5%
10. Retail Food Chains 4%
ASSET ALLOCATION (% OF TOTAL MARKET VALUE) a/o 12/31/2023
Corporate Bonds 81%
Common Stocks & Warrants 13%
Preferred Stocks 4%
Cash & Cash Equivalents 2%
S & P RATINGS (% OF FIXED INCOME MARKET VALUE) 12/31/2023
BBB 0%
BB 60%
B 23%
CCC 3%
Not Rated 14%
FIXED INCOME CHARACTERISTICS
Weighted Avg. Coupon 7.03%
Effective Duration 2.97 years
Yield to Maturity 8.92%
AVERAGE ANNUAL TOTAL RETURNS a/o 12/31/2023
3 Mo. YTD 1YR 3YR 5YR 10YR Inception~
NEIT 4.60 11.76 11.76 4.66 2.20 0.19 6.83

BofA Merrill Lynch

US High Yield Index

7.06 13.44 13.44 2.00 5.21 4.51 n/a
CALENDAR YEAR RETURNS a/o 12/31/2023
YEAR 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
NEIT -5.36 -17.99 16.72 6.28 -5.04 0.92 -3.61 5.17 -2.49 11.76

Past Performance does not guarantee future results, and an investment in the Trust is not guaranteed.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than that quoted.  Current month-end performance data may be obtained by calling 1-800-225-6704.

The ICE BofA US High Yield Index is an unmanaged market value-weighted index comprised of all domestic and yankee high yield bonds, including deferred interest bonds and payment-in-kind securities.  Issues included in the index have maturities of one year or more and have a credit rating lower than BBB-/Baa3, but are not in default.  It is shown for comparative purposes only and reflects no deduction for fees, expenses and taxes.

Investors should carefully consider investment objectives, risks, charges and expenses.  This material must be precede or accompanied by a prospectus or summary prospectus.  Please read carefully before investing.

Mutual Fund investing involves risk.  The Trust invests in lower rated debt securities which may be subject to increased market volatility based on factors such as: the ability of an issuer to make current interest payments, the potential for principal loss if an issuer declares bankruptcy, and the potential difficulty in disposing of certain securities in a timely manner at a desired price and therefore can present an increased risk of investment loss.

Beta measures the volatility of an investment relative to an index. R-squared (R-2) measures the relationship between an investments performance relative to an index.  A higher R2 indicates that movement in the index more closely affects the movement in the investment.  Upside Capture measures an investment manager’s overall performance in up-markets.  It is used to evaluate how well a portfolio performed relative to an index during periods when that index has risen.  Downside Capture measures an investment manager’s overall performance in down-markets.  It is used to evaluate how well a portfolio performed relative to an index during periods when that index has fallen.  Standard deviation measures historical volatility.  Higher standard deviation implies higher price volatility.  Issuers with credit ratings of BBB or better are considered to be of good credit quality, with adequate capacity to meet financial commitments.  Issuers with credit rating below BBB are considered speculative in nature and are vulnerable to the possibility of issuer failure.

Falling interest rates and bond defaults may negatively impact the Trust’s distributable income. In addition, during periods of declining interest rates, higher yield securities may be called and the Trust may be unable to reinvest those proceeds in similar yielding securities. Therefore, shareholders should expect the Trust’s quarterly dividend distributions to decline under these circumstances. The Trust is generally for investors with longer-term investment horizons, and should not be used for short-term trading purposes. An investment in the Trust involves risk and should be part of a balanced investment program.

*The current expense ratio may differ from the one reported here due to fluctuations in net assets and expenses.

^Risk Metrics are calculated against the ICE BofA US High Yield Index using monthly data over a 3 year period.

~The inception date of the Trust is 3/1/1950; the inception date for the ICE BofA US High Yield Index is 8/31/1986.

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