UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS FOR REGISTERED MANAGEMENT INVESTMENT
COMPANY
Investment Company Act file number 811-03074
Northeast Investors Growth Fund
(Exact name of registrant as specified in charter)
100 High Street
Boston, MA 02110
(Address of principal executive offices) (Zip code)
David Randall
100 High Street
Boston, MA 02110
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-523-3588
Date of fiscal year end: December 31
Date of reporting period: March 31, 2010
Form N-Q is to be used by management investment companies, other than
small business investment companies registered on Form N-5 ( 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days
after the close of the first and third fiscal quarters, pursuant to rule 30b1-5
under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission
may use the information provided on Form N-Q in its regulatory, disclosure
review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by
Form N-Q, and the Commission will make this information public. A
registrant is not required to respond to the collection of information
contained in Form N-Q unless the Form displays a currently valid Office of
Management and Budget ("OMB") control number. Please direct comments
concerning the accuracy of the information collection burden estimate and
any suggestions for reducing the burden to Secretary, Securities and Exchange
Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has
reviewed this collection of information under the clearance requirements of 44
U.S.C. 3507.
Item 1. Schedule of Investments.
Schedule of Investments
3/31/2010 (unaudited)
Common Stock Sector Percent of
Number of Market Net
Name of Issuer Shares Value Assets
--------------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary
------------------------------------------------------------------------------------------------------------
Ford Motor Co. 122,500 $ 1,539,825
McDonald's Corp.* 31,500 2,101,680
Nike, Inc. 32,600 2,396,100
----------------------
6,037,605 6.41%
Consumer Staples
------------------------------------------------------------------------------------------------------------
CVS Caremark Corp.* 47,630 1,741,353
Nestle SA, ADR* 44,000 2,252,800
PepsiCo, Inc.* 26,900 1,779,704
Procter & Gamble Co.* 29,300 1,853,811
----------------------
7,627,668 8.09%
Energy
------------------------------------------------------------------------------------------------------------
Apache Corp. 22,000 2,233,000
Chevron Corp.* 25,700 1,948,831
EnCana Corp. 30,600 949,518
Exxon Mobil Corp.* 22,582 1,512,542
National-Oilwell Varco, Inc. 34,500 1,400,010
Occidental Petroleum Corp. 26,000 2,198,040
Petroleo Brasileiro SA, ADR 42,000 1,662,780
Schlumberger Ltd. 35,000 2,221,100
----------------------
14,125,821 14.99%
Financials
------------------------------------------------------------------------------------------------------------
Bank of America Corp. 124,000 2,213,400
CME Group, Inc. 5,150 1,627,967
Eaton Vance Corp.* 54,600 1,831,284
Fifth Third Bancorp 185,000 2,508,600
Goldman Sachs Group, Inc. 15,400 2,627,702
JPMorgan Chase & Co. 54,500 2,438,875
T. Rowe Price Group, Inc.* 33,700 1,852,489
Wells Fargo & Co. 47,000 1,462,640
----------------------
16,562,957 17.58%
Health Care
------------------------------------------------------------------------------------------------------------
Athenahealth, Inc. 28,500 1,041,960
Johnson & Johnson 21,800 1,421,360
Medco Health Solutions, Inc. 18,900 1,220,184
Teva Pharmaceutical Industries Ltd., ADR 28,000 1,766,240
----------------------
5,449,744 5.78%
Industrials
------------------------------------------------------------------------------------------------------------
Danaher Corp.* 29,900 2,389,309
Deere & Co.* 42,550 2,530,023
Emerson Electric Co.* 59,400 2,990,196
General Electric Co. 123,000 2,238,600
United Technologies Corp.* 34,900 2,568,989
----------------------
12,717,117 13.50%
Information Technology
------------------------------------------------------------------------------------------------------------
Akamai Technologies, Inc.^# 92,900 2,918,918
Apple, Inc.^ 13,050 3,066,750
Cisco Systems, Inc.^ 95,500 2,485,865
Corning, Inc.* 154,100 3,114,361
Google, Inc., Class A*^ 5,400 3,062,448
International Business Machines Corp. 18,000 2,308,500
Oracle Corp. 58,000 1,491,180
Qualcomm, Inc. 37,500 1,573,500
----------------------
20,021,522 21.25%
Materials
------------------------------------------------------------------------------------------------------------
BHP Billiton Ltd., ADR# 19,000 1,526,080
Freeport-McMoRan Copper & Gold, Inc. 21,500 1,796,110
Kinross Gold Corp. 65,000 1,110,850
United States Steel Corp. 21,000 1,333,920
Vale, ADR# 45,000 1,448,550
----------------------
7,215,510 7.66%
Telecommunication Services
------------------------------------------------------------------------------------------------------------
America Movil, ADR 39,500 1,988,430
American Tower Corp., Class A^ 55,531 2,366,176
----------------------
4,354,606 4.62%
Total Common Stocks (Cost-$73,668,224) $ 94,112,550 99.88%
----------------------
Repurchase Agreement
------------------------------------------------------------------------------------------------------------
State Street Bank & Trust Co. Repurchase Agreement, 0.01% due 4/1/10 @ 164,837
Total Repurchase Agreement (Cost-$164,837) $ 164,837 0.17%
----------------------
Cash Equivalents
------------------------------------------------------------------------------------------------------------
State Street Bank & Trust Navigator Prime~ 15,664,812
Total Cash Equivalents (Cost-$15,664,812) $ 15,664,812 16.62%
----------------------
Total Investment Portfolio (Cost-$89,497,873) 109,942,199 116.67%
----------------------
Net Other Assets and Liabilities (15,711,975) -16.67%
----------------------
Total Net Assets $94,230,224 100.00%
======================
* All or a portion of this security is pledged to collateralize short-term
borrowings, when utilized
^ Non-income producing security
# All or a portion of this security is out on loan
@ Acquired on March 31, 2010. Collateralized by $172,831 of market value of
U.S. Government mortgage-backed securities due through 11/25/39. The
maturity value is $164,837.
~ Security held as collateral for securities on loan
Accounting Standards Codification ASC 820, "Fair Value Measurements and
Disclosures" (ASC 820) established a fair value hierarchy that distinguishes
between market data obtained from independent sources (observable inputs)
and the Fund's own market assumptions (unobservable inputs). The inputs or
methodologies used for valuing securities are not necessarily an indication of
the risk associated with investing in those securities. The various inputs that
may be used to determine the value of the Fund's investments are summarized in
the following fair value hierarchy:
Level 1 - Unadjusted quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 - Significant unobservable inputs (including the Fund's own assumptions
used to determine the fair value of investments).
The following table summarized the Fund's investment as of March 31, 2010, based
on the inputs used to value them.
Level 1 Level 2 Level 3 Total
Common Stock $94,112,550 --- --- $94,112,550
Cash Equivalents $15,664,812 --- --- $15,664,812
Repurchase Agreement --- $164,837 --- $164,837
-------------------------------------------------------
$109,777,362 $164,837 --- $109,942,199
Note: Each fiscal quarter-end the Fund is required to file a complete schedule
of investments with the Securities and Exchange Commission. The schedules of
portfolio holdings for the second and fourth quarters appear in the semi-annual
and annual reports to shareholders. For the first and third quarters, the
Fund files the schedules of portfolio holdings with the SEC on Form N-Q. The
Fund makes the information on Forms N-Q available on its website at
www.northeastinvestors.com or upon request.
Shareholders may also access and review information and reports of the Fund,
including Form N-Q, at the SEC's Public Reference Room in Washington, D.C.
You can call the SEC at 1-202-942-8090 for information about the operation of
the Public Reference Room. Reports and other information about the Fund are
available on the SEC's internet site at http://www.sec.gov and copies may be
obtained for a duplicating fee by electronic request at the following E-mail
address: publicinfo@sec.gov or by writing the Public Reference Center of the
Securities and Exchange Commission, Washington, D.C. 20549-0102. The Fund's
reference number as a registrant under the Investment Company Act of 1940 is
811-3074
Item 2. Controls and Procedures.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3
(c))) are effective, as of a date within 90 days of the filing date of the
report that includes the disclosure required by this paragraph, based on their
evaluation of these controls and procedures required by Rule 30a-3(b) under the
1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15
(b)).
(b) There was no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the registrant's last fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)
) and Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Northeast Investors Growth Fund
By (Signature and Title) /s/ William A. Oates, Jr.
William A. Oates, Jr.
President
(principal executive officer)
Date: June 1, 2010
By (Signature and Title) /s/ Gordon C. Barrett
Gordon C. Barrett
Chief Financial Officer
(principal financial officer)
Date: June 1, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on
the dates indicated.
(Registrant) Northeast Investors Growth Fund
By (Signature and Title) /s/ William A. Oates, Jr.
William A. Oates, Jr.
President
(principal executive officer)
Date: June 1, 2010
By (Signature and Title) /s/ Gordon C. Barrett
Gordon C. Barrett
Chief Financial Officer
(principal financial officer)
Date: June 1, 2010
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act
I, William A. Oates, Jr., certify that:
1. I have reviewed this report on Form N-Q of Northeast Investors Growth Fund;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the
registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant
and have:
a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report based on such evaluation;
and
d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
control over financial reporting.
Date: June 1, 2010 /s/ William A. Oates, Jr.
William A. Oates, Jr.
President
(principal executive officer)
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act
I, Gordon C. Barrett, certify that:
1. I have reviewed this report on Form N-Q of Northeast Investors Growth Fund;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the
registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal
control over financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report based on such evaluation;
and
d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
control over financial reporting.
Date: June 1, 2010 /s/ Gordon C. Barrett
Gordon C. Barrett
Chief Financial Officer
(principal financial officer)