Northeast Management & Research Company, Inc.

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

NMR was organized in July, 1980 to manage the Fund and at present engages in no other activities. William A. Oates, Jr. was the President of NMR and President and portfolio manager of the Fund. He served in these capacities from the Fund’s inception in 1980 until his death in February, 2017. Nancy Mulligan is now President of NMR and along with John Francini are co-portfolio managers and have day-to-day responsibility for managing the Fund’s portfolio. Both Nancy and John are directors of NMR and officers of the Fund. Justin E. Oates and John R. Lawrie serve as analysts to the Fund. Additional information related to each portfolio manager’s compensation, ownership percentages and other accounts managed may be found in the Statement of Additional Information.

NMR serves the Fund pursuant to an interim Advisory and Service Contract. Under its terms, NMR is required to provide an investment program within the limitations of the Fund’s investment policies and restrictions, and is authorized in its discretion to buy and sell securities on behalf of the Fund. NMR also provides the Fund’s executive management and office space. A discussion regarding the basis for the Trustees approving the continuance of the Fund’s previous Advisory and Service Contract with NMR is set forth in the Fund’s Semi-Annual Report to Shareholders for the six-month period ended June 30, 2016.

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

Nancy M. Mulligan