Northeast Investors Growth Fund

Management

Northeast Management & Research Company, Inc. (“NMR”), located at 100 High Street, Boston, MA 02110, is the investment advisor to the Northeast Investors Growth Fund and serves the Fund pursuant to an interim Advisory and Service Contract. As the manager, NMR is responsible for choosing the Fund’s investments and is subject to the general supervision of the Fund’s Trustees.

Objective

Northeast Investors Growth Fund (the ‘Fund’) is a no-load fund whose primary objective is to produce long-term capital appreciation for its shareholders.

Strategy

The Fund maintains a flexible investment policy which primarily targets common stocks of large domestic companies. The Fund emphasizes well-known companies which it believes to have strong management, solid financial fundamentals and which are established leaders in their industries. The Fund generally invests in companies with market capitalizations in excess of $10 billion.

The investment policy allows the Fund to achieve its objective through the purchase of common stocks of both domestic and foreign issuers (ADRs). The Fund may also invest in securities convertible into common stocks, preferred stocks, corporate bonds, warrants or money market instruments. Over the past decade, common stocks have represented at least 95% of the Fund’s portfolio. In addition to the strategies mentioned above, the Fund may lend its securities to certain approved broker dealers to generate additional income for the Fund.

 

Important Notice

May 19, 2017

Dear Fellow Shareholder:

For more than 30 years, Northeast Investors Growth Fund (the “Fund”) has sought to help shareholders build and preserve wealth. The Fund has survived market fluctuations, wide economic swings and a myriad of domestic and foreign political upheavals. Our mission has always been to consider first and foremost the long-term interest of our shareholders. In keeping with this mission, on May 18, 2017, the Board of Trustees of the Fund (the “Board”) approved the involuntary redemption of all the Fund’s shares outstanding as of June 29, 2017. The Board also approved the subsequent liquidation and dissolution of the Fund.

For some time, the Fund’s investment advisor, Northeast Management and Research Co., Inc. (the “Advisor”) and the Board have been monitoring the Fund’s size and have taken many steps to reduce the Fund’s expenses. The death of Billy Oates, the sole owner of the Advisor and President of the Fund, accelerated this discussion. The Board approved an interim contract allowing the Advisor to continue managing the Fund through July 14, 2017. However, in order to continue managing the Fund after that date, a meeting of the shareholders and subsequent vote to approve a new investment advisory agreement is required. The estimated cost of this effort would be high relative to the size of the Fund and such cost would be borne by the Fund’s shareholders. The Advisor and the Board considered alternatives to the Fund’s liquidation, including the possibility of the Advisor’s acquisition and the Fund’s combination with another mutual fund, but the Board determined that the Fund’s liquidation was in the best interests of the shareholders. Additionally, as you the shareholder know, the Fund is not part of a larger fund complex. It is a stand-alone Fund that does not afford investors different investment opportunities, making it less attractive to new investors. Finally, increasing regulatory burdens and associated costs of operating mutual funds have made it very difficult for the Fund to compete with larger funds that have the scale to manage these costs. After careful consideration, the Advisor recommended liquidation to the Board and the Board concluded that liquidation was in the best interest of the shareholders.

Prior to June 29, 2017, shareholders may continue to redeem their shares at their net asset value in accordance with the procedures set forth in the Fund’s Prospectus.

All shareholders will receive a package in the mail which will include this letter and a Transaction Request form with instructions on how to redeem their shares. IRA owners will receive this letter and an IRA Distribution form plus additional information regarding their redemption options.

All shares that are not redeemed prior to June 29, 2017 will be involuntarily redeemed at their net asset value on that date without any approval or action of shareholders.

We thank you for the time that you were a shareholder of the Fund and remind you that we at Northeast Management and Research Company, Inc. and our affiliated investment adviser, Northeast Investment Management, Inc., remain committed to providing a high level of service to all of our clients. If you have any questions, please call us at 1-855-755-6344 Monday through Friday from 9 a.m. to 8 p.m. Eastern time or visit our website at www.northeastinvestorsgrowthfund.com.

Sincerely,
Nancy M. Mulligan
President

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