Fund Evaluator:
Northeast Investors Trust (NTHEX)
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Best Performing in High Yield Bond Over the Last Year
| 15.7% | Fidelity Capital & Income (FAGIX) |
| 14.3% | Fidelity Advisor Capital & Income Z (FIQTX) |
| 10.0% | Northeast Investors Trust (NTHEX) |
| 8.5% | American Beacon SiM High Yld Opps Inv (SHYPX) |
| 8.5% | Fidelity Advisor High Income Z (FGUMX) |
Fund Details
Northeast Investors Trust Overview
Northeast Investors Trust (NTHEX) is an actively managed Taxable Bond High Yield Bond fund. Northeast Investors launched the fund in 1950.
The investment seeks the production of income, capital appreciation is also an objective of the trust but its achievement must be compatible with the primary objective. The fund invests primarily in marketable securities of established companies which the Trustees believe provide income and which, where consistent with the objective, may have potential for capital appreciation. The manager emphasizes high yield corporate bonds which are unrated or rated as lower than investment grade by either of the two principal rating services.
About Northeast Investors Trust (NTHEX)
There are 2 members of the management team with an average tenure of 20.68 years: Chapin Mechem (2022), Bruce Monrad (1989). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: ICE BofA US High Yield TR USD index with a weighting of 100%. Northeast Investors Trust has 41 securities in its portfolio. The top 10 holdings constitute 48.1% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Northeast Investors Trust is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Northeast Investors Trust has 5.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 15.8%. There is 1.3% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 70.8% (66.8% domestic bond, 4.0% foreign bond and 0.0% convertible bond). Northeast Investors Trust has 10.2% of the portfolio in cash.
Assets Under Management
The fund has $123 million in total assets, which is below the $545 million average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
NTHEX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Northeast Investors Trust expense ratio is high compared to funds in the High Yield Bond category. Northeast Investors Trust has an expense ratio of 1.94%, which is 111% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Northeast Investors Trust has a portfolio turnover rate of 40%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 71% for the High Yield Bond category.
Recently, in the month of June 2026, Northeast Investors Trust returned 0.3%, which earned it a grade of B, as the High Yield Bond category had an average return of 0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Northeast Investors Trust has a trailing yield of 4.46%, which is below the 6.26% category average. The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Northeast Investors Trust Grades
Year to date, the fund has returned 1.4%, 0.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 10.0% over the past year (grade of A), 8.2% over the past three years (grade of C) and 5.4% per year over the past five years (grade of A) and 4.2% per year over the past 10 years (grade of F).
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NTHEX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| NTHEX Return (NAV) | 0.3% | 1.4% | 10.0% | 8.2% | 5.4% | 4.2% |
| NTHEX Grade | B | F | A | C | A | F |
| +/- Category | 0.0% | -1.0% | 4.3% | 0.0% | 1.6% | -0.9% |
| High Yield Bond Avg | 0.2% | 2.4% | 5.7% | 8.1% | 3.8% | 5.1% |
| NTHEX Tax Cost Ratio | na | na | 1.8% | 2.0% | 2.1% | 2.2% |
NTHEX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| NTHEX Return (NAV) | 1.4% | 10.3% | 6.0% | 11.7% | -2.5% | 5.2% | -3.6% | 0.9% | -5.0% | 6.3% | 16.7% |
| NTHEX Grade | D | A | F | C | A | C | F | F | F | D | A |
| +/- Category | -0.5% | 2.4% | -1.6% | -0.2% | 7.5% | 0.1% | -8.9% | -12.1% | -2.4% | -0.4% | 3.3% |
| High Yield Bond Avg | 1.9% | 7.9% | 7.6% | 11.9% | -10.0% | 5.1% | 5.3% | 13.0% | -2.7% | 6.7% | 13.4% |
| Risk Measures | |
| Standard Deviation: | 5.4% |
| Total Risk Index: | 0.45 - Low |
| Category Risk Index: | 1.35 - High |
| Category Risk Grade: | F (99% Rank) |
| Beta: | 0.24 |
| R-Squared: | 6% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Value |
| Bond Investment Style: | na |
| Yield: | 4.5% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $123 Mil |
| Fund Total Assets: | $ 124 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 41% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 36.9 years | |||
| Average Tenure: 20.7 years | |||
| Managers (Year): Monrad Bruce (1989), Mechem Chapin (2022) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 41 |
| % in Top 10 Holdings: | 48.1% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 5.4% |
Portfolio Allocation |
|
| Domestic Stock: | 15.8% |
| Foreign Stock: | 1.3% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 66.8% |
| Foreign Bond: | 4.0% |
| Convertible Bond: | 0.0% |
| Other: | 1.8% |
| Cash: | 10.2% |
Purchase Information
| Fund Family: | Northeast Investors |
| Phone Number: | 800-225-6704 |
| Website: | www.northeastinvestors.com |
| Status: | Open |
| Inception Date: | March 1, 1950 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $ 500 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 1.94% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.92% |
| Share Class: | Northeast Investors Trust |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
