The closing price for NTHEX on 4/13/2021 was $3.85

Advisors

NORTHEAST INVESTORS TRUST

Fund Facts k03/31/2021
Inception March 1, 1950
Number of Holdings 51
Total Net Assets $164,960,253
Expense Ratio a/0 9/30/2020 1.71% (includes .08% interest expense)
Minimum Investment $1000 ($500 for retirement accounts)
CUSIP 664210101
Ticker NTHEX
30-Day SEC Yield a/o 3/31/21 4.18%
Shares Outstanding 42,967,787
Load None
 

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 Managers

Bruce H. Monrad – Managed Fund from 1989-present

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.

Portfolio Statistics a/o 03/31/2021
Number of Holdings 51
Turnover a/o 9/30/2020 43.75%
Alpha 3 year ^ -0.46
Beta 3 year ^ 0.70
R Squared 3 year 0.74
Top 10 Sector Breakdown a/o 03/31/2021
1. Metals & Mining 10%
2. Energy/Nat Resources 10%
3. Consumer Discretionary 10%
4. Tobacco 9%
5. Food Processing 9%
6. Wireless Telecom 7%
7. Industrial Services/Mfg 7%
8. Auto Manufacturing 6%
9. Pipeline 6%
10. Chemicals 6%
Asset Allocation a/o 03/31/2021
Corporate Bonds 77%
Repurchase Agreement 6%
Common Stock & Warrants 11%
Preferred Stocks 6%
Maturity Distribution a/o 03/31/2021
Under 1 Year 43%
1-5 Years 49%
6-10 Years 1%
More than 10 Years 7%
Average Annual Returns a/o 03/31/2021
3 Mo. YTD 1YR 3YR 5YR 10YR Inception*
NEIT 4.60 4.60 17.02 -0.29 5.97 1.52 6.97

ICE BofA Merrill Lynch

US High Yield Index

0.90 0.90 23.31 6.52 7.93 6.31 n/a
Calendar Year Returns a/o 03/31/2021
YEAR 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
NEIT -0.72 14.63 13.01 -5.36 -17.99 16.72 6.28 -5.04 0.92 -3.60

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.  Additional performance data may be obtained by calling 1-800-225-6704 or by visiting www.northeastinvestors.com/performance.

The ICE BofA Merrill Lynch US High Yield Index is an unmanaged market value-weighted index comprised of approximately 2,200 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.

^ As compared to the ICE BofA Merrill Lynch US High Yield Index.

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

Investors should carefully consider investment objectives, risks, charges and expenses.  This and other important information about the Trust is contained in the prospectus or summary prospectus, either of which may be obtained by calling 1-800-225-6704 or by visiting www.northeastinvestors.com.  Please read either one 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 or 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.

If you want to receive correspondence from the fund, please provide your e-mail address below.