Northeast Investors Trust
Dear Shareholders:
We are pleased to submit our 48th Annual Report. Net assets rose to $11.79
per share at year-end, up from $10.90 per share on September 30, 1996. Total net
assets were $2,074,181,767, up from $1,200,483,907 on September 30, 1996. This
increase in assets helped to lower our yearly expense ratio once again, to .64%.
Our trailing one- five-, and ten-year average annual total return figures are
18.16%, 14.93% and 11.76%, respectively, to September 30, 1997.
We have been concerned about the closing of the spread between Treasuries and
high-yield bonds. However, in 1983 the spread was on the order of 125 basis
points, so today's 250-300 is generous by that historical comparison, at least.
To try to protect asset value and earning power, we have been gradually and,
hopefully, carefully, employing the proceeds of maturing Treasury bills and
incoming cash to acquire "yield-to-call" paper that gives us a good income and
short maturity, and to purchase selected new issues when attractive. The new
issues are often debt offerings of companies to which banks have been lending
for years, but who now seek more permanent financing.
We are often asked if the inflow of money and the significant increase in the
size of our fund that has occurred in the last year have had an effect on our
ability to manage the portfolio. Today the high yield market is over $400
billion in size, with well over 500 issuers, so the aggregate portfolio is
considerably less than 1% of this agora. Unlike a standard corporation, where
additional shares often are seen to result in dilution, new net shares sold by a
mutual fund result in money being brought in, during a rising market, at the
higher market level then extant, softening, if not eliminating any dilution. As
set forth above, our costs are spread over a larger base.
We are also asked about the influence that higher interest rates could have
on our price. If interest rates are not carried to 1979-82 extremes, higher
rates usually reflect a better economy which normally raises the cash flow
available for payment of the interest accruing on our holdings.
These, then, are the current factors in our efforts to try to continue to
provide superior results for our shareholders.
Respectfully submitted,
Ernest E. Monrad
Chairman of the Trustees
October 14, 1997
<PAGE>
<TABLE>
Distribution Per Share
Fiscal At End of Fiscal Year During Fiscal Year Average
====================================================================================================================================
Year Approximate Full Net Asset Total From From Monthly
Ended Number of Shares Value Net Net Realized Net Asset
Sept. 30 Shareholders Outstanding Per Share Assets Income Gain Value
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1950(a) 67 27,685 $10.12 $ 280,172 $0.22 $0.0000 $ 9.86
1951 113 51,070 11.09 566,238 0.60 0.2709 10.71
1952 159 78,519 11.33 889,359 0.61 0.2597 11.28
1953 193 96,413 10.83 1,044,115 0.65 0.1046 11.57
1954 290 131,031 14.17 1,855,734 0.61 0.2269 12.75
1955 366 159,278 16.93 2,695,322 0.675 0.3886 16.30
1956 417 168,256 16.87 2,837,437 0.745 0.3185 17.65
1957 437 180,360 14.57 2,626,103 0.76 1.2450 16.72
1958 505 210,929 16.55 3,489,777 0.76 0.6658 15.75
1959 694 259,709 16.77 4,354,809 0.76 1.6951 18.36
1960 884 316,915 15.73 4,986,360 0.79 0.5663 16.58
1961 1,156 391,126 17.23 6,739,320 0.80 0.8179 17.33
1962 1,508 492,454 16.48 8,111,024 0.80 0.4345 17.45
1963 2,142 676,976 17.80 12,046,866 0.80 0.4134 17.70
1964 2,800 981,037 18.48 18,122,167 0.83 0.4899 18.36
1965 3,380 1,238,570 18.46 22,855,525 0.84 0.4642 18.80
1966 3,678 1,445,424 16.03 23,163,540 0.86 0.4346 18.08
1967 3,773 1,644,607 17.31 28,454,561 0.90 0.3157 17.08
1968 3,932 1,954,413 17.74 34,657,130 0.94 0.4357 17.31
1969 4,396 2,225,423 15.30 34,032,661 0.99 0.4378 17.07
1970 5,066 2,618,638 14.15 37,049,008 1.035 0.0000 14.57
1971 5,574 3,174,649 15.23 48,329,677 1.10 0.0000 15.04
1972 6,276 3,924,201 15.75 61,787,749 1.15 0.0000 15.74
1973 7,269 4,541,622 15.18 68,896,938 1.14 0.0000 15.62
1974 7,380 4,735,497 12.35 58,446,955 1.16 0.0000 13.95
1975 8,354 5,995,696 13.04 78,126,666 1.21 0.0000 13.10
1976 10,023 8,067,930 14.57 117,514,100 1.25 0.0000 14.02
1977 12,871 10,781,998 14.93 160,882,937 1.28 0.0000 14.96
1978 13,717 11,838,531 14.03 166,015,297 1.28 0.0000 14.34
1979 13,924 12,463,013 13.01 162,045,583 1.285 0.0000 13.89
1980 13,086 12,405,590 11.26 139,586,138 1.34 0.0000 11.78
1981 11,828 12,249,619 9.38 114,852,760 1.395 0.0000 10.35
1982 12,792 13,360,184 10.88 145,243,484 1.41 0.0000 10.01
1983 13,027 14,361,773 11.83 169,821,605 1.44 0.0000 11.96
1984 11,634 15,324,746 10.98 168,229,381 1.46 0.0000 10.34
1985 11,991 17,887,582 12.19 217,989,344 1.46 0.0000 11.77
1986 14,431 23,037,102 13.60 313,197,229 1.46 0.0000 13.17
1987 17,532 26,987,069 12.89 347,841,198 1.46 0.0000 13.63
1988 19,107 33,268,240 12.16 404,218,905 1.94 0.0000 12.13
1989 18,749 34,498,332 11.18 385,389,718 1.54 0.0000 11.64
1990 16,895 31,459,941 8.81 277,133,819 1.43 0.0000 9.78
1991 15,747 35,220,038 8.83 310,667,350 1.34 0.0000 8.36
1992 15,918 47,684,814 9.50 452,773,909 1.15 0.0000 9.22
1993 16,209 47,797,167 9.94 474,975,825 1.02 0.0000 9.68
1994 17,460 58,148,389 10.02 582,093,443 0.99 0.0000 10.27
1995 20,644 77,209,155 10.33 797,559,000 0.96 0.0000 10.01
1996 24,631 110,229,375 10.90 1,200,483,907 0.99 0.0000 10.46
1997 34,213 175,955,357 11.79 2,074,181,767 1.00 0.0000 11.32
(a)From March 1, 1950, date of organization of the Trust. The shares were initially sold on March 1,1950 at a net asset value of
$10.00 per share.
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Average Annual Total Return (unaudited):
One year ended September 30, 1997..................................18.16%
Five years ended September 30, 1997................................14.93%
Ten years ended September 30, 1997.................................11.76%
SEC yield calculated as of September 30, 1997 (unaudited):...............7.28%
</TABLE>
<TABLE>
<S> <C> <C>
Corporate Bonds
Advertising $6,956,250 .34%
Apparel 40,084,192 1.93%
Automobile &Truck 1,320,000 .06%
Automotive Products 9,658,125 .47%
Building &Construction 91,560,580 4.41%
Chemicals 120,728,750 5.82%
Clothing 5,719,000 .28%
Computer Software & Services 8,980,000 .43%
Conglomerate 22,139,192 1.07%
Entertainment 3,595,250 .17%
Fast Food Service 3,977,500 .19%
Food &Beverage 146,102,358 7.04%
Food Service 19,201,250 .93%
Furniture 12,292,500 .59%
Gaming 236,391,769 11.40%
Grocery Stores 112,133,100 5.41%
Metals & Mining 28,702,113 1.38%
Oil/Gas Exploration 10,900,000 .53%
Packaging & Container 156,667,531 7.55%
Paper &Forest Products 58,177,280 2.80%
Petroleum & Drilling 12,486,940 .60%
Publishing & Printing 23,251,900 1.12%
Real Estate 50,096,180 2.42%
Recreation 27,750,000 1.34%
Retail 24,281,078 1.17%
Retail Food Chains 68,420,254 3.30%
Tobacco & Distilling 1,065,000 .05%
Transportation 18,770,265 .90%
Miscellaneous 54,987,708 2.65%
- --------------------------------------------------------------------------------
Total Corporate Bonds 1,376,396,065 66.35%
Total Treasury Bills 148,725,000 7.17%
Total Foreign Bonds 61,954,755 2.99%
Total Common Stocks 260,741,264 12.57%
Total Preferred Stocks 100,573,050 4.85%
Total Warrants and Units 11,355,600 .55%
Total Repurchase Agreement 82,884,007 4.00%
Total Investments 2,042,629,741 98.48%
Cash &Receivables 41,881,679 2.02%
Total Assets 2,084,511,420 100.50%
Less Liabilities (10,329,653) (0.50%)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $2,074,181,767 100.00%
====================================================================================================================================
</TABLE>
<PAGE>
The following graph compares the cumulative total shareholder return onNortheast
Investors Trust shares over the ten preceding fiscal years to the cumulative
total share return on the First Boston High Yield Index, assuming an investment
of $10,000 in both at their closing prices on September 30, 1987 and
reinvestment of dividends and capital gains. For management's discussion of the
Trust's fiscal year 1997 performance, see the Chairman's letter to shareholders.
(EDGAR REFERENCE - GRAPH)
<TABLE>
<CAPTION>
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Northeast Investors Trust $10,000 $11,062 $11,601 $10,572 $12,436 $15,153 $17,615 $19,546 $22,173 $25,716 $30,386
First Boston High Yield Index$10,000$11,380 $12,011 $10,944 $14,986 $18,056 $20,888 $21,608 $24,648 $27,302 $31,593
</TABLE>
<PAGE>
<TABLE>
Corporate Bonds
<CAPTION>
Market
Name of Issuer Principal Value (Note B)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Advertising--.34%
- ------------------------------------------------------------------------------------------------------------------------------------
Outdoor Communications Sen. Sub. Notes, 9.25%, 8/15/07.................. 7,000,000 $ 6,956,250
Apparel--1.93%
- ------------------------------------------------------------------------------------------------------------------------------------
JPS Textile Group, Inc. Sen. Sub. Disc. Notes, 10.25%, 6/01/99~......... 6,143,000 4,883,685
JPS Textile Group, Inc. Sen. Sub. Disc. Notes, 10.85%, 6/01/99~........ . 14,592,000 11,600,640
JPStevens Debentures, 9%, 3/01/17^...................................... 12,671,000 13,114,485
Samsonite Corp. Senior Sub. Notes, 11.125%, 7/15/05..................... 2,667,000 3,060,382
United States Leather, Inc. Senior Notes, 10.25%, 7/31/03^.............. 13,500,000 7,425,000
====================================================================================================================================
40,084,192
Automobile &Truck--.06%
- ------------------------------------------------------------------------------------------------------------------------------------
Speedy Muffler King, Inc. Senior Notes, 10.875%, 10/01/06............... 1,500,000 1,320,000
Automotive Products--.47%
- ------------------------------------------------------------------------------------------------------------------------------------
Exide Corp. Senior Notes, 10.75%, 12/15/02.............................. 9,090,000 9,658,125
Building & Construction--4.41%
- ------------------------------------------------------------------------------------------------------------------------------------
Aluma Enterprises, Inc., 7.50%, 12/31/01................................ 5,167,783 3,617,448
American Standard Senior Sub. Deb., 0/10.50%, 6/01/05#.................. 70,000,000 69,650,000
Associated Materials Senior Sub. Deb. Notes, 11.5%, 8/15/03............. 6,200,000 6,587,500
Nortek, Inc. Senior Sub. Notes, 9.875%, 3/01/04......................... 5,950,000 6,083,875
Nualt Enterprises, Inc., 0/6%,12/31/04#................................. 8,031,082 5,621,757
- ------------------------------------------------------------------------------------------------------------------------------------
91,560,580
Chemicals--5.82%
- ------------------------------------------------------------------------------------------------------------------------------------
Huntsman Corp. Sen. Sub. Floating Rate Notes, 7/01/07................... 22,500,000 23,400,000
Huntsman Polymer Corp. Senior Notes, 11.75%, 12/01/04................... 14,000,000 15,645,000
Indspec Chemical Corp. Sen. Sub. Notes, 0/11.5%, 12/01/03#^............. 15,869,000 15,472,275
LaRoche Ind. Sen. Sub. Notes, 9.50%, 9/15/07............................ 6,000,000 6,030,000
NL Industries Senior Disc. Notes, 0/13%, 10/15/05#^..................... 17,460,000 17,110,800
Pioneer Americas Acq. Senior Notes, 9.25%, 6/15/07...................... 12,500,000 12,500,000
Plastic Specialties &Technologies Sen. Nts, 11.25%, 12/01/03^........... 12,000,000 12,780,000
Revlon Worldwide Senior Disc. Notes Series B, 0%, 3/15/98............... 10,000,000 9,755,000
UCC Investors Holding Disc. Notes, 0/12%, 5/01/05#...................... 2,300,000 2,202,250
Uniroyal Technology Senior Notes, 11.75%, 6/01/03....................... 6,045,000 5,833,425
<PAGE>
120,728,750
====================================================================================================================================
Corporate Bonds--continued Market
Name of Issuer Principal Value (Note B)
- ------------------------------------------------------------------------------------------------------------------------------------
Clothing--.28%
- ------------------------------------------------------------------------------------------------------------------------------------
Westpoint Stevens Senior Notes, 8.75%, 12/15/01......................... 350,000 $ 364,000
Westpoint Stevens Senior Sub. Debentures, 9.375%, 12/15/05.............. 5,100,000 5,355,000
====================================================================================================================================
5,719,000
Computer Software & Services--.43%
- ------------------------------------------------------------------------------------------------------------------------------------
Unisys Corporation Senior Notes, 12%, 4/15/03........................... 8,000,000 8,980,000
Conglomerate--1.07%
- ------------------------------------------------------------------------------------------------------------------------------------
Jordan Industries Sen. Sub. Disc. Notes, 0/11.75%, 8/01/05#............. 21,616,713 11,889,192
Jordan Industries Senior Notes, 10.375%, 8/01/07........................ 10,000,000 10,250,000
====================================================================================================================================
22,139,192
Entertainment--.17%
- ------------------------------------------------------------------------------------------------------------------------------------
Telemundo Group, Inc. Sen. Disc. Notes, 7/10.5%, 2/15/06#............... 3,650,000 3,595,250
Fast Food Service--.19%
- ------------------------------------------------------------------------------------------------------------------------------------
Boston Chicken Convertible Notes, 0%, 6/01/15........................... 18,500,000 3,977,500
Food & Beverage-- 7.04%
- ------------------------------------------------------------------------------------------------------------------------------------
Americold Corp. First Mortgage Notes Series B, 11.50%, 3/01/05.......... 29,708,000 32,010,370
Americold Corp. Senior Sub. Notes, 12.875%, 5/01/08..................... 15,150,000 18,180,000
Envirodyne Industries, Inc. Senior Notes, 10.25%, 12/01/01^............. 20,395,000 20,445,988
Great American Cookie Senior Sec. Notes, 10.875%, 1/15/01............... 3,500,000 3,570,000
Specialty Foods Senior Notes, 10.25%, 8/15/01........................... 49,600,000 48,856,000
Specialty Foods Corp. Sen. Notes Series B, 11.125%, 10/01/02............ 23,040,000 23,040,000
====================================================================================================================================
146,102,358
Food Service--.93%
- ------------------------------------------------------------------------------------------------------------------------------------
B&GFoods Senior Sub. Notes, 9.625%, 8/01/07............................. 7,000,000 6,991,250
SC International Service Senior Sub. Notes, 9.25%, 9/01/07.............. 12,000,000 12,210,000
====================================================================================================================================
19,201,250
Furniture--.59%
- ------------------------------------------------------------------------------------------------------------------------------------
Lifestyle Furnishings Intl. Ltd. Sen. Sub. Notes, 10.875%, 8/01/06...... 11,000,000 12,292,500
<PAGE>
Corporate Bonds--continued Market
Name of Issuer Principal Value (Note B)
- ------------------------------------------------------------------------------------------------------------------------------------
Gaming--11.40%
- ------------------------------------------------------------------------------------------------------------------------------------
Aztar Corp. Senior Sub. Notes, 11%, 10/01/02............................ 1,652,000 $ 1,701,560
Aztar Corp. Senior Sub. Notes, 13.75%, 10/01/04^........................ 21,548,000 24,699,395
Boyd Gaming Senior Sub. Notes, 9.50%, 7/15/07........................... 45,000,000 45,900,000
California Hotel Finance Co. Sen. Sub. Notes, 11%, 12/01/02............. 17,085,000 17,939,250
Coast Hotels &CasinoFirst Mortgage Notes, 13%, 12/15/02................. 10,000,000 11,275,000
Eldorado Resorts Senior Sub. Notes, 10.5%, 8/15/06...................... 1,500,000 1,635,000
GBProperty Funding Corp. Mort. Notes, 10.875%, 1/15/04^................. 17,350,000 15,615,000
Griffin Gaming &Entertainment First Mort. Notes, 0%, 6/30/00............ 10,390,000 10,305,764
Harrahs Operating, Inc. Senior Sub. Notes, 8.75%, 3/15/00............... 20,760,000 21,227,100
Marvel Holdings Sen. Sec. Disc. Notes Series B, 0%, 4/15/98^~........... 5,000,000 550,000
Riviera Holdings Corp. First Mortgage Notes, 10%, 8/15/04............... 17,000,000 17,085,000
Showboat, Inc. Senior Sub. Notes, 13%, 8/01/09.......................... 900,000 1,044,000
Trump Atlantic City First Mortgage Notes, 11.25%, 5/01/06............... 55,000,000 53,350,000
Trump Plaza Funding First Mortgage Notes, 10.875%, 6/15/01.............. 13,000,000 14,064,700
====================================================================================================================================
236,391,769
Grocery Stores--5.41%
- ------------------------------------------------------------------------------------------------------------------------------------
Fleming Co., Inc. Medium Term Notes, 9.24%, 2/28/00..................... 5,000,000 5,044,500
Fleming Co., Inc. Medium Term Notes Series B, 8.74%, 9/19/02............ 6,000,000 5,981,400
Fleming Co., Inc. Medium Term Notes Series C, 6.04%, 7/19/00^........... 5,000,000 4,662,500
Fleming Co., Inc. Medium Term Notes, 5.77%, 8/06/98..................... 3,000,000 2,927,400
Fleming Co., Inc. Senior Sub. Notes, 10.50%, 12/01/04................... 20,000,000 20,700,000
Fleming Co., Inc. Senior Sub. Notes, 10.625%, 7/31/07................... 18,000,000 18,720,000
Food 4 Less Holdings Debentures, 0/13.625%, 7/15/05#.................... 29,000,000 23,127,500
Grand Union Company Senior Notes, 12%, 9/01/04^......................... 13,500,000 6,142,500
P&C Food Market Senior Notes, 11.5%, 10/15/01^.......................... 25,590,000 24,822,300
Victory Markets, Inc. Sub. Notes, 12.5%, 3/15/00~....................... 2,000,000 5,000
====================================================================================================================================
112,133,100
Metals & Mining--1.38%
- ------------------------------------------------------------------------------------------------------------------------------------
Armco, Inc. Senior Notes, 11.375%, 10/15/99............................. 7,705,000 7,878,363
Armco, Inc. Senior Notes, 9%, 9/15/07................................... 4,000,000 4,050,000
Kaiser Aluminum Chemical Corp. Sub. Notes, 12.75%, 2/01/03.............. 2,000,000 2,160,000
Kaiser Aluminum Chemical Corp Series B, 10.875%, 10/15/06............... 13,500,000 14,613,750
- ------------------------------------------------------------------------------------------------------------------------------------
28,702,113
Oil/Gas Exploration--.53%
- ------------------------------------------------------------------------------------------------------------------------------------
Santa Fe Energy Resources Senior Sub. Deb., 11%, 5/15/04................ 10,000,000 10,900,000
Packaging & Container--7.55%
- ------------------------------------------------------------------------------------------------------------------------------------
Florida Coast Paper Co. First Mortgage Notes, 12.75%, 6/01/03........... 7,000,000 7,612,500
Four M Corporation Senior Notes, Series B 12%, 6/01/06.................. 1,500,000 1,620,000
Gaylord Container Corp. Sen. Sub. Deb., 12.75%, 5/15/05................. 45,319,000 49,567,656
<PAGE>
Corporate Bonds--continued Market
Name of Issuer Principal Value (Note B)
- ------------------------------------------------------------------------------------------------------------------------------------
Packaging & Container--continued
- ------------------------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp. Senior Notes, 9.75%, 6/15/07.................... 19,000,000 $ 19,285,000
Huntsman Packaging Corp. Sen. Sub. Notes, 9.125%, 10/01/07.............. 4,500,000 4,590,000
Owens-Illinois, Inc. Senior Sub. Notes, 9.95%, 10/15/04................. 1,000,000 1,052,500
Packaging Resources, Inc. Senior Notes, 11.625%, 5/01/03................ 8,800,000 9,328,000
Stone Container Corp. Conv. Sen. Sub. Notes, 8.875%, 7/15/00 ........... 3,000,000 4,636,875
Stone Container Corp. Senior Notes, 12.58%, 8/01/16..................... 25,000,000 27,625,000
Stone Container Corp. Senior Sub. Notes, 12.25%, 4/01/02................ 10,000,000 10,400,000
Stone Container Corp. Senior Notes, 11.5%, 8/15/06...................... 20,000,000 20,950,000
===================================================================================================================================
156,667,531
Paper & Forest Products-- 2.80%
- ------------------------------------------------------------------------------------------------------------------------------------
Fort Howard Corp. Sub. Notes, 10%, 3/15/03.............................. 7,445,000 7,966,150
MAXXAM Group, Inc. Senior Disc. Notes, 0/12.25%, 8/01/03#............... 30,000,000 27,600,000
MAXXAM Group, Inc. Sen. Sec. Disc. Notes, 12%, 8/01/03................. 7,000,000 7,560,000
Repap New Brunswick Sen. FRN, Libor +.325%, 7/15/00..................... 15,000,000 14,812,500
WTDIndustries, Inc. Senior Sub. Deb., 8%, 6/30/05....................... 340,900 238,630
===================================================================================================================================
58,177,280
Petroleum & Drilling-- .60%
- ------------------------------------------------------------------------------------------------------------------------------------
Global Marine Senior Notes, 12.75%, 12/15/99............................ 4,400,000 4,543,000
Harcor Energy, Inc. Senior Notes, 14.875%, 7/15/02...................... 4,982,000 5,828,940
Parker Drilling Company Senior Notes, 9.75%, 11/15/06................... 2,000,000 2,115,000
- ------------------------------------------------------------------------------------------------------------------------------------
12,486,940
Publishing & Printing-- 1.12%
- ------------------------------------------------------------------------------------------------------------------------------------
American Pad &Paper Senior Sub. Notes, 13%, 11/15/05.................... 19,705,000 23,251,900
Real Estate--2.42%
- ------------------------------------------------------------------------------------------------------------------------------------
Crow Winthrop Operating Partnership, 11.85%, 4/01/98~................... 12,309,100 9,847,280
Olympia & York Maiden Lane Sec. Notes, 10.375%, 12/31/95~............... 19,535,000 10,548,900
Rockefeller Center Properties Conv. Deb., 0%, 12/31/00.................. 43,200,000 29,700,000
- ------------------------------------------------------------------------------------------------------------------------------------
50,096,180
Recreation--1.34%
- ------------------------------------------------------------------------------------------------------------------------------------
Genmar Holdings, Inc. Senior Sub. Notes, 13.5%, 7/15/01................. 18,000,000 18,000,000
Outboard Marine Corp. Debentures, 9.125%, 4/15/17^...................... 9,750,000 9,750,000
- ------------------------------------------------------------------------------------------------------------------------------------
27,750,000
Retail--1.17%
- ------------------------------------------------------------------------------------------------------------------------------------
Bradlees, Inc. Senior Sub. Notes, 11%, 8/01/02~......................... 2,000,000 125,000
Bradlees, Inc. Senior Sub. Notes, 9.25%, 3/01/03~....................... 15,455,000 772,750
Eyecare Centers of America, Inc. Senior Notes, 12%, 10/01/03............ 7,000,000 7,588,000
Finlay Enterprises Senior Disc. Debentures, 0/12%, 5/01/05#............. 8,000,000 7,740,000
<PAGE>
Corporate Bonds--continued Market
Name of Issuer Principal Value (Note B)
- ------------------------------------------------------------------------------------------------------------------------------------
Retail--continued
- ------------------------------------------------------------------------------------------------------------------------------------
Orion Stores Secured Notes, 12.75%, 10/01/98............................ 5,178,265 $ 5,230,047
Town & Country Corp. Senior Sub. Notes, 13%, 5/31/98.................... 7,434,949 2,825,281
====================================================================================================================================
24,281,078
Retail Food Chains--3.30%
- ------------------------------------------------------------------------------------------------------------------------------------
American Restaurant Group Senior Notes, 13%, 9/15/98.................... 6,744,674 6,609,780
American Restaurant Group Senior Notes, 13%, 9/15/98.................... 4,231,300 4,146,674
Family Restaurants Senior Notes, 9.75%, 2/01/02......................... 18,000,000 14,580,000
Flagstar Corporation Senior Notes, 10.875%, 12/01/02.................... 14,200,000 14,576,300
Flagstar Corporation Senior Sub Notes, 11.25%, 11/01/04~................ 22,000,000 10,010,000
Flagstar Corporation Senior Notes, 10.75%, 9/15/01...................... 15,750,000 16,222,500
Flagstar Corporation Senior Sub. Notes, 11.375%, 9/15/03~............... 5,000,000 2,275,000
- ------------------------------------------------------------------------------------------------------------------------------------
68,420,254
Tobacco & Distilling--.05%
- ------------------------------------------------------------------------------------------------------------------------------------
MacAndrews & Forbes Co. Sen. Sub. Notes, 11.875%, 11/15/02.............. 1,000,000 1,065,000
Transportation--.90%
- ------------------------------------------------------------------------------------------------------------------------------------
Central Transport Rental Group Notes, 9.5%, 4/30/03.................... 13,440,250 14,280,265
Moran Transportation Co. Mortgage Notes, 11.75%, 7/15/04^............... 4,000,000 4,490,000
====================================================================================================================================
18,770,265
Miscellaneous--2.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Acadia Partners L.P. Sub. Notes, 13%, 10/01/97.......................... 14,000,000 14,000,000
Hines Horticulture Senior Sub. Notes, 11.75%, 10/15/05.................. 3,000,000 3,270,000
Iron Mountain, Inc. Senior Sub. Notes, 10.125%, 10/01/06................ 2,500,000 2,700,000
K&F Industries Senior Notes, 11.875%, 12/01/03 ......................... 5,661,000 5,986,508
Mosler, Inc. Senior Notes, 11%, 4/15/03................................. 10,340,000 8,659,750
Precise Technology Sen. Sub. Notes, 11.125%, 6/15/07^................... 7,500,000 7,593,750
Specialty Equipment Senior Sub. Notes, 11.375%, 12/01/03................ 7,620,000 8,267,700
Tokheim Corporation Senior Sub. Notes, 11.5%, 8/01/06................... 4,000,000 4,510,000
====================================================================================================================================
54,987,708
====================================================================================================================================
Total Corporate Bonds--66.35% (cost--$1,365,125,727) 1,376,396,065
====================================================================================================================================
Treasury Bills--
U.S. Treasury Bills--7.17%
====================================================================================================================================
U.S. Treasury Bill, 2/19/1998........................................... 50,000,000 49,020,000
U.S. Treasury Bill, 11/13/1997.......................................... 50,000,000 49,710,000
U.S. Treasury Bill, 10/02/1997.......................................... 50,000,000 49,995,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total Treasury Bills--7.17% (cost--$148,590,012) 148,725,000
====================================================================================================================================
<PAGE>
Foreign Bonds-- Market
Name of Issuer Principal Value (NoteB)
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign Bonds-- 2.99%
- ------------------------------------------------------------------------------------------------------------------------------------
Argentina GlobalBonds, 9.75%, 9/19/27................................... 32,751,000 $ 32,914,755
Republic of Brazil Discount FRN, Libor +.8125%, 4/15/24................. 33,000,000 29,040,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total Foreign Bonds--2.99% (cost--$53,115,724) 61,954,755
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Market
Stocks-- Shares Value (Note B)
- ------------------------------------------------------------------------------------------------------------------------------------
Common Stock-12.57%
- ------------------------------------------------------------------------------------------------------------------------------------
Alarmguard Holdings, Inc.+.............................................. 48,300 422,625
American Building Co.+.................................................. 8,807 250,449
Bankers Trust NY^....................................................... 350,000 42,875,000
Central Transport Rental Group+......................................... 4,111,586 2,826,715
Chase Manhattan Corp.................................................... 225,000 26,550,000
Chubb Corp.^............................................................ 500,000 35,531,250
Cole National Corp. Class A+ ........................................... 48,000 1,995,000
Crompton &Knowles Corp.................................................. 206,724 5,491,106
Darling International, Inc.+............................................ 248,510 7,144,662
Fred Meyer, Inc.+ ...................................................... 12,649 673,578
Gaylord Container Corp.+................................................ 1,243,799 10,572,292
Grand Union Co.+........................................................ 167,904 293,832
Homeland Stores Holdings Corp. A+....................................... 6,354 50,832
International Airline Support Group+.................................... 224,540 2,469,940
J P Morgan & Co.^....................................................... 200,000 22,725,000
Leucadia National Corp+................................................. 242,608 8,309,324
Little Switzerland, Inc.+............................................... 273,659 1,812,991
MAXXAM, Inc.+........................................................... 200,000 10,800,000
NL Industries........................................................... 1,000,000 16,000,000
Specialty Equipment Co. +............................................... 400,000 6,700,000
Stage Stores, Inc.+..................................................... 134,986 5,821,271
Telemundo Group, Inc.+.................................................. 244,660 8,563,100
Town & Country Corp. Class A+........................................... 1,079,455 202,398
Walter Industries, Inc.+................................................ 536,183 10,690,149
WestPoint Stevens, Inc.+^............................................... 635,000 26,193,750
WPS Investors LP+@...................................................... 200,000 5,776,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks--12.57% (cost--$170,176,876) 260,741,264
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred Stocks--4.85%
- ------------------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc. Series M,PIK 10.25%................................... 88,122 100,459,080
Town & Country Corp. Conv., 6%.......................................... 303,919 113,970
- ------------------------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks--4.85% (cost--$94,900,787) 100,573,050
====================================================================================================================================
<PAGE>
Warrants and Units Number of Market
Name of Issuer Shares or Units Value (Note B)
- ------------------------------------------------------------------------------------------------------------------------------------
Warrants and Units--.55%+
- ------------------------------------------------------------------------------------------------------------------------------------
Cookies USA, Inc. Warrants.............................................. 630 6,300
Eyecare Center Corp. Warrants........................................... 6,500 6,500
Federated Dept. Stores C Warrants....................................... 225,869 4,602,081
Federated Dept. Stores D Warrants....................................... 290,771 5,742,727
Harcor Energy, Inc. Warrants............................................ 88,000 88,000
Homeland Holding Corp. Warrants......................................... 6,687 7,891
Jewel Recovery L P Units@............................................... 281,290 2,813
Wherehouse Entertainment A Warrants..................................... 81,163 743,453
Wherehouse Entertainment B Warrants..................................... 14,090 83,131
Wherehouse Entertainment C Warrants..................................... 14,090 72,704
- ------------------------------------------------------------------------------------------------------------------------------------
.............................Total Warrants and Units--.55% (cost--$5,072,141) 11,355,600
Principal
Repurchase Agreement--4.00%
- ------------------------------------------------------------------------------------------------------------------------------------
Investors Bank &Trust Repurchase Agreement, 5.62%, due 10/1/97.......... $82,884,007 82,884,007
- ------------------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreement--4.00% (cost--$82,884,007)** 82,884,007
====================================================================================================================================
Total Investments--98.48% (cost--$1,919,865,274) $2,042,629,741
====================================================================================================================================
<FN>
** Acquired on September 30, 1997. Collateralized by $87,028,699 various U.S.Government mortgage-backed securities, due
through 4/01/27. The maturity value is $82,896,946. As an operating policy, the Trust, through the custodian bank, secures
receipt
of adequate collateral supporting repurchase agreements.--(see Note G).
- ------------------------------------------------------------------------------------------------------------------------------------
~ Non-income producing security due to default or bankruptcy filing + Non-income
producing security @ Securities valued in good faith (See Note B)
# Represents a zero coupon bond that converts to a fixed rate at a
designated future date. The date shown on the schedule of investments represents
the maturity date of the security and not the date of coupon conversion.
^ Pledged to collateralize short-term borrowings (See Note F)
PIK Payment in Kind
Federal Tax Information: At September 30, 1997, the aggregate
cost of investment securities for income tax purposes was $1,919,102,561. Net
unrealized appreciation aggregated $123,527,180 of which $187,919,936 related to
appreciated investment securities and $64,392,756 related to depreciated
investment securities.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
September 30, 1997
====================================================================================================================================
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments--at market value
(cost $1,919,865,274)--Note B ....... $2,042,629,741
Interest receivable..................... 34,190,928
Receivable for securities sold.......... 1,807,229
Receivable for shares of beneficial
interest sold........................ 5,210,376
Receivable for dividends................ 673,146
-----------
Total Assets.......... 2,084,511,420
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payable for securities purchased........ 6,114,375
Payable for shares of beneficial
interest repurchased................. 1,450,814
Trustee fees payable--Note C............. 2,594,419
Accrued expenses........................ 170,045
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities..... 10,329,653
====================================================================================================================================
Net Assets.............................. $2,074,181,767
====================================================================================================================================
Net Assets Consist of (Note B):
Capital, at a $1.00 par value...........$ ..175,955,357
Paid-in surplus......................... 1,776,728,026
Accumulated net investment income....... 861,454
Accumulated net realized loss
on investments....................... (2,127,537)
Net unrealized appreciation of
investments.......................... 122,764,467
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, for 175,955,357 shares
outstanding......................... .$2,074,181,767
====================================================================================================================================
Net Asset Value, offering price
and redemption price per share
($2,074,181,767/175,955,357 shares) $11.79
====================================================================================================================================
..............
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year Ended September 30, 1997
====================================================================================================================================
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Interest.................................$ 136,040,421
Dividends................................. 9,922,099
Other Income.............................. 2,608,528
---------
Total Income .............148,571,048
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Trustee fees--Note C........ $8,594,779
Administrative
expenses and
salaries................. 693,093
Registration and
filing fees.............. 237,810
Computer and
related expenses......... 210,785
Printing, postage
and stationery........... 192,926
Custodian fees.............. 116,249
Interest--Note F............ 110,638
Legal fees.................. 102,199
Auditing fees............... 67,710
Other expenses.............. 44,108
Insurance................... 14,720
- --------------------------------------------------------------------------------
Total Expenses ...................... 10,385,017
- --------------------------------------------------------------------------------
Net Investment Income.............. 138,186,031
================================================================================
Realized and Unrealized Gain (Loss) on Investments --Note B:
================================================================================
Net realized gain from investment
transactions........................... 13,597,710
Change in unrealized appreciation
of investments......................... 118,703,536
-----------
Net Gain on Investments.................... 132,301,246
-----------
Net Increase in Net Assets Resulting
from Operations........................ $270,487,277
================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Increase in Net Assets
From Operations:
Net investment income................................................ $ 138,186,031 $ 87,229,924
Net realized gain from investment transactions....................... 13,597,710 14,771,550
Change in unrealized appreciation of investments..................... 118,703,536 39,213,982
------------ ------------
Net Increase in Net Assets Resulting from
Operations...................................................... 270,487,277 141,215,456
Distributions to Shareholders from Net Investment Income.. ..............(140,252,504) (87,486,984)
($1.00 and $.99 per share, respectively)
From Net Trust Share Transactions--Note D............................. 743,463,087 349,196,435
Total Increase in Net Assets.................................. 873,697,860 402,924,907
====================================================================================================================================
Net Assets:
Beginning of Period.................................................. 1,200,483,907 797,559,000
--------------- ------------
End of Period (including undistributed net investment
income of $861,454 and $1,850,095, respectively).................. $2,074,181,767 $1,200,483,907
===================================================================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
Note A-Organization
Northeast Investors Trust (the Trust), a diversified open-end management
investment company (a Massachusetts Trust), is registered under the Investment
Company Act of 1940, as amended.
Note B-Significant Accounting Policies
Significant accounting policies of the Trust are as follows:
Valuation of Investments: Securities for which market quotations are
readily available are valued at market values determined on the basis of the
last quoted sale prices prior to the close of the New York Stock Exchange (or
the last quoted bid prices in the event there are no sales reported on that day)
in the principal market in which such securities normally are traded, as
publicly reported, or are furnished by recognized dealers in such securities.
Securities for which market quotations are not readily available (including
restricted securities and private placements, if any) are valued at their fair
value as determined in good faith under consistently applied procedures approved
by the Board of Trustees. Securities may also be valued on the basis of
valuations furnished by a pricing service that uses both dealer supplied
valuations and evaluations based on expert analysis of market data and other
factors if such valuations are believed to reflect more accurately the fair
value of such securities.
Federal Income Taxes: The Trust does not provide for federal income taxes
as it is the policy of the Trust to distribute its taxable income for each year
in taxable dividends so as to qualify as a regulated investment company under
the Internal Revenue Code.
State Income Taxes: Because the Trust has been organized by an Agreement
and Declaration of Trust executed under the laws of the Commonwealth of
Massachusetts, it is not subject to state income or excise taxes.
Net Asset Value: In determining the net asset value per share, rounding
adjustments are made for fractions of a cent to the next higher cent.
Distributions and Income: Income and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments for capital loss carryforwards and losses deferred due to
wash sales. Permanent book and tax differences relating to shareholder
distributions will result in reclassifications to paid-in surplus. The Trust's
distributions and dividend income are recorded on the ex-dividend date. Interest
income, which includes accretion of market discount, is accrued as earned.
Original issue discount on bonds and step-up bonds is accreted according to the
effective-yield method. Certain securities held by the Trust pay interest in the
form of cash or additional securities (known as Payment-in-kind or PIK);
interest on such securities is recorded on the accrual basis by means of the
effective-yield method.
Security Transactions: Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the basis of
identified cost.
Use of Estimates: The preparation of financial statements in conformity
with generally accepted accounting principles requiresmanagement to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Note C-Trustees' Compensation
Trustees' compensation has been computed at the rate of 1/8 of 1% of the
net assets (before deduction of accrued Trustees' compensation) at the close of
each quarter, from which the Trustees have paid certain expenses specified in
the Declaration of Trust. <PAGE>
Note D-Shares of Beneficial Interest
At September 30, 1997, there were unlimited shares of beneficial interest
authorized with a par value of $1. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
------------ ------------- ------------ -------------
Shares sold............................................. 118,017,888 $1,336,261,827 60,008,485 $631,430,398
Shares issued to shareholders in reinvestment of
distributions from net investment income............ 8,383,229 94,018,470 5,469,554 56,729,325
------------ ------------- ------------ -------------
126,401,117 1,430,280,297 65,478,039 688,159,723
Shares repurchased...................................... (60,675,135) (686,817,210) (32,457,819) (338,963,288)
------------ ------------ ------------- -------------
Net Increase......................................... 65,725,982 $743,463,087 33,020,220 $349,196,435
------------ -------------- ------------ -----------
</TABLE>
Note E-Purchases and Sales of Investments
Purchases and sales of securities, other than short-term and government
securities, aggregated $1,047,689,128 and $528,263,842, respectively, for the
period ended September 30, 1997.
Note F-Short-term Borrowings
Short-term bank borrowings, which do not require maintenance of
compensating balances, are generally on a demand basis and are at rates equal to
adjusted money market interest rates in effect during the period in which such
loans are outstanding. At September 30, 1997 the Trust has unused lines of
credit amounting to $120,000,000. The committed lines of credit may be
terminated at the banks' option at their annual renewal dates. The following
information relates to aggregate short-term borrowings for the year ended
September 30, 1997: <TABLE> <CAPTION>
<S> <C>
Maximum amount outstanding at any month end.................... $7,810,636
Average amount outstanding (total of daily outstanding principal balances
divided by number of days with debt outstanding during the period). $4,166,183
Average interest rate ........................................... 6.25%
</TABLE>
Interest expense includes commitment fees of $108,410. Under the most
restrictive arrangement, the Trust must pledge to the banks securities having a
market value equal to or greater than 200% of the total bank borrowings.
Securities with principal amounts and market values aggregating $99,266,000 and
$163,253,348, respectively, have been pledged to collateralize short-term
borrowings. Note G-Repurchase Agreement
On a daily basis, the Trust invests uninvested cash balances into
repurchase agreements secured by U.S. Government obligations. Securities pledged
as collateral for repurchase agreements are held by the Trust's custodian bank
until maturity of the repurchase agreement. Provisions of the agreement ensure
that the market value of the collateral is sufficient in the event of default.
However, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings. Note H-Capital Loss Carryforward
At September 30, 1997 the Trust had $2,028,795 accumulated net realized
losses on sales of investments available to be carried forward to offset future
net realized gains on sales of investments. To the extent that such
carryforwards are utilized by the Trust, no capital gains distributions will be
made. The carryforward expires on September 30, 2001.
Year Ended September 30,
<PAGE>
<TABLE>
<CAPTION>
Year Ended September 30,
Per Share Data 1997 1996 1995 1994 1993 1992~ 1991~ 1990~ 1989~ 1988~
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value:
Beginning of Period............ $10.90 $10.33 $10.02 $9.94 $9.50 $8.83 $8.81 $11.18 $12.16 $12.89
Income From Investment
Operations:
Net investment income............ .98 .98 .98 .98 1.04 1.15 1.32 1.45 1.50 1.65
Net realized and
unrealized gain (loss)
on investment................. .91 .58 .29 .09 .42 .67 .04 (2.39) (.94) (.44)
Total from investment
operations.................... 1.89 1.56 1.27 1.07 1.46 1.82 1.36 (.94) .56 1.21
Less Distributions:
Net investment income......... (1.00) (.99) (.96) (.99) (1.02) (1.15) (1.34) (1.43) (1.54) (1.94)+
Net Asset Value:
End ofPeriod................... $11.79 $10.90 $10.33 $10.02 $9.94 $9.50 $8.83 $8.8 $11.18 $12.16
Total Return.................... 18.16% 15.98% 13.44% 10.96% 16.25% 21.85% 17.63% (8.87)% 4.87% 10.62%
Ratios &Supplemental Data
Net assets end of
period (in millions)............$2,074.2 $1,200.5 $797.6 $582.1 $475.0 $452.8 $310.7 $277.1 $385.4 $404.2
Ratio of operating
expenses to average
net assets.................... .64% .66% .67% .70% .73% .79% .88% .78% .72% .75%
Ratio of interest expense
to average net assets......... .01% .03% .35% .36% .48% .65% 1.01% .69% .61% .66%
Ratio of net investment
income to average
net assets ................... 8.65% 9.41% 9.77% 9.37% 10.53% 12.36% 15.38% 14.35% 12.68% 13.16%
Portfolio turnover rate.......... 33.44% 32.01% 40.58% 73.36% 75.72% 59.41% 33.77% 21.23% 33.61% 17.35%
Average broker
commission>..................... $0.05 $0.06
<FN>
+Includes accumulated undistributed net investment income (including original
issue discount)through December 31, 1987 as required under the excise tax
provisions of the Tax Reform Act of 1986, estimated by the trustees to be $.42
per share.
~ Audited by other auditors.
> For fiscal years after August 31,1996 the trust is required to disclose its
average commission rate per share paid for security trades.
</FN>
</TABLE>
<PAGE>
To the Shareholders and Trustees of
Northeast Investors Trust
We have audited the accompanying statement of assets and liabilities of
Northeast Investors Trust, including the schedule of portfolio investments, as
of September 30, 1997, and the related statement of operations for the year then
ended, the changes in net assets for each of the two years in the period then
ended and the financial highlights for each of the five years in the period then
ended. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for the years ended September 30, 1988 through
1992, presented herein, were audited by other auditors whose report dated
October 30, 1992, expressed an unqualified opinion on such financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1997 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Northeast Investors Trust as of September 30, 1997, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Trustees
- --------------------------------------------------------------------------------
Ernest E. Monrad C. Earl Russell
Robert B. Minturn, Jr. Fred L. Glimp
Bruce H. Monrad J. Murray Howe
Officers
- --------------------------------------------------------------------------------
William A. Oates, Jr., President
Robert B. Minturn, Jr., Vice President & Clerk
Gordon C. Barrett, Vice President & Treasurer
Bruce H. Monrad, Vice President
Kelly A. Beatty, Asst. Vice President
Lisa A. Hislop, Asst. Vice President
Lynn A. Manton, Asst. Vice President
Custodian
- --------------------------------------------------------------------------------
200 Clarendon Street
Boston, MA 02116
Legal Counsel
- --------------------------------------------------------------------------------
and Popeo, P.C.
One Financial Center
Boston, Massachusetts 02111
Transfer Agent
- --------------------------------------------------------------------------------
50 Congress Street
Boston, Massachusetts 02109
Independent Accountants
- --------------------------------------------------------------------------------
One Post Office Square
Boston, Massachusetts 02109
This report is prepared for the information of the shareholders of Northeast
Investors Trust and must not be given to others unless preceded or accompanied
by a copy of the current Prospectus by which all offerings of the Trust's shares
are made. It should be noted in reading this report and the letter to
shareholders that the record of past performance is not a representation as to
the Trust's future performance, and that the Trust's investments are subject to
market risks.
Shares of the Fund are sold to investors at net asset value by
Northeast Investors Trust
50 Congress Street
Boston, Massachusetts 02109
800-225-6704
617-523-3588
The share price for Northeast Investors Trust is quoted daily in the Mutual
Funds section of most major newspapers under several abbreviations including: NE
Investors, NE Inv Tr.
