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NORTHEAST INVESTORS TRUST
0000072760
2013-01-31
2013-02-01
2013-02-01
2012-09-30
Investment Objective:
Northeast Investors Trust (the "Trust") is a no-load high-yield bond fund whose primary objective is the production of income.
Fees and Expenses:
These tables describe the fees and expenses that you may pay if you buy and hold shares of the Trust.
Shareholder Fees (Fees Paid Directly From Your Investment)
0
0
0
0.005
0
0.0055
0.0005
0.005
0.0105
Annual Trust Operating Expenses (Expenses Deducted From Fund Assets)
107
334
579
1283
Example
This example is intended to help you compare the cost of investing in the Trust with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Trust for the time periods indicated and redeem at the end of the period. The example also assumes that your investment has a 5% return each year, including reinvested dividends and distributions, and that the Trust's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
0.1463
0.1192
0.0941
0.1558
0.0464
0.0182
0.0219
0.1
0.1038
0.0384
0.0367
0.0654
0.1435
0.1438
0.0223
0.121
0.0017
-0.3727
0.5379
0.1425
-0.0072
0.1463
Best quarter:
Worst quarter:
2009-06-30
2008-12-31
0.3146
-0.2822
Portfolio Turnover:
The Trust pays transaction costs, such as commissions, when it buys or sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Trust shares are held in a taxable account. These costs, which are not reflected in annual Trust operating expenses or in the example, affect the Trust's performance. During the most recent fiscal year, the Trust's portfolio turnover rate was 25.36% of the average value of its portfolio.
Primary Investment Strategies:
The Trustees invest primarily in marketable securities of established companies which the Trustees believe provide reasonable income and which, where consistent with this objective, may have potential for capital appreciation. The Trust's portfolio emphasizes debt securities which are rated as lower than investment grade by either of the two principal rating services or unrated securities having similar characteristics (sometimes referred to as "junk bonds").
Principal Risks:
Risk of Lower Rated Debt Securities. Lower rated debt securities may be subject to increased market volatility based on factors such as: the ability of an issuer to make its current interest payments, the potential for principal loss if an issuer declares bankruptcy, and the potential difficulty in disposing of certain securities and therefore can present an increased risk of investment loss.<br/><br/>Income Risk. The chance that falling interest rates and/or defaults will cause the Trust's income to decline. Shareholders should expect the Trust's quarterly income to fluctuate.<br/><br/>Interest Rate Risk. The chance that the value of bonds tends to fall as interest rates rise. Longer-term debt securities are more sensitive to interest rate changes than those with shorter maturities.
Performance Information:
The following performance related information provides some indication of the risks of investing in the Trust. The bar chart shows how the Trust's performance (including operating expenses) varied from one calendar year to another over the past ten years. The table shows the average annual returns (including operating expenses) compared with those of a relevant market index over set periods of time. The table also presents the impact of taxes on the Trust's returns. To calculate these figures, we used the highest individual federal marginal income and capital gains tax rates in effect at the time of each distribution, but we do not take into consideration state or local income taxes. Return after taxes on distributions and sale of Trust shares may be higher than other returns for the same period due to the tax benefit of realizing a capital loss on the sale of Trust shares. Actual after-tax returns depend on the individual investor's tax situation and may differ from those shown.<br/><br/>Please note that if you own the Trust in a tax-deferred account, such as an individual retirement account or a 401(k) plan, this after-tax information does not apply to your investment, because such accounts are subject to taxes only upon distribution. Keep in mind that past performance - whether before taxes or after taxes - does not guarantee future results.<br/><br/>The Trust may experience short-term swings of performance as suggested by the best and worst calendar quarter returns.
Average Annual Total Return<br/>for the Periods Ended December 31, 2012
Annual Total Returns:
The following bar chart shows the change in value of the Trust's shares over the past 10 years. It illustrates how the returns can differ one year to the next.
Best quarter: 2nd quarter 2009, up 31.46% Worst quarter: 4th quarter 2008, down 28.22%
0
SUMMARY SECTION
You can find the Trust's prospectus and other information about the Trust, including the Statement of Additional Information and the most recent reports to shareholders online at www.northeastinvestors.com. You can also get this information at no cost by calling 800-225-6704 or by sending an email to website@northeastinvestors.com.
800-225-6704
www.northeastinvestors.com
0.2536
The bar chart shows how the Trust's performance (including operating expenses) varied from one calendar year to another over the past ten years. The table shows the average annual returns (including operating expenses) compared with those of a relevant market index over set periods of time.
The table also presents the impact of taxes on the Trust's returns. To calculate these figures, we used the highest individual federal marginal income and capital gains tax rates in effect at the time of each distribution, but we do not take into consideration state or local income taxes.
Return after taxes on distributions and sale of Trust shares may be higher than other returns for the same period due to the tax benefit of realizing a capital loss on the sale of Trust shares.
Please note that if you own the Trust in a tax-deferred account, such as an individual retirement account or a 401(k) plan, this after-tax information does not apply to your investment, because such accounts are subject to taxes only upon distribution.
Keep in mind that past performance - whether before taxes or after taxes - does not guarantee future results.
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