Loading...
Docoh

New America High Income Fund (HYB)

Filed: 5 Mar 20, 7:24am

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

 811-05399

 

THE NEW AMERICA HIGH INCOME FUND, INC.

(Exact name of registrant as specified in charter)

 

33 Broad Street, Boston, MA

 

02109

(Address of principal executive offices)

 

(Zip code)

 

Ellen E. Terry

33 Broad Street

Boston, MA 02109

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(617) 263-6400

 

 

Date of fiscal year end:

December 31, 2019

 

 

Date of reporting period:

July 1, 2019 to December 31, 2019

 

 


 

Item 1.           Report to Stockholders

 


February 14, 2020

Dear Shareholder,

We are pleased to report to our shareholders on the results of The New America High Income Fund, Inc. (the "Fund") for the year ended December 31, 2019. The Fund's net asset value (the "NAV") was $10.02 as of December 31st. The market price for the Fund's shares ended the period at $9.13, representing a market price discount of approximately 9%. During the period, the Fund paid dividends totaling $0.66 per share, including a special dividend of $0.055 per share. The dividend yield for a share of common stock purchased at the market price of $7.56 on December 31, 2018 was 8.73%. The dividend yield based upon the December 31, 2018 NAV of $8.90 was 7.42%. The Fund's investment adviser discusses the market environment and its market outlook in detail below.

As of December 31st, the Fund's outstanding borrowing through its credit facility with the Bank of Nova Scotia (the "Facility") was unchanged at $91 million. The borrowing represented approximately 28% of the Fund's total assets. Amounts borrowed under the Facility bear interest at an adjustable rate based on a margin above LIBOR. The rate the Fund paid on the Facility decreased during the year, as LIBOR fell following three cuts in the Federal Funds (the "Fed Funds") rate in the second half of the year. The interest rate on the Facility at the end of the period was 2.65%. The average rate on the Facility in 2019 was 3.15%, compared with an average rate of 2.91% in 2018.

For the fifth consecutive year, the spread between the interest rate the Fund paid on leverage (i.e., borrowings) and the market value-weighted average current yield earned on its portfolio declined. At year-end 2018, the Fund was paying 3.31% in interest on borrowings and earning a market-value weighted current yield of 7.36%, for a spread of 4.05 percentage points. At the end of 2019, the Fund was paying 2.65% in interest on leverage, compared with the portfolio's market value-weighted current yield of 6.53%, narrowing the spread to 3.88 percentage points. The multi-year trend of leverage contributing less to the Fund's common stock dividend continued in 2019. The Fund's leverage accounted for approximately 15.2% of the Fund's net income in 2019, down from 16.7%, 20% and 23%, in 2018, 2017 and 2016, respectively.

We remind our shareholders that there is no certainty that the dividend will remain at the current level. The dividend can be affected by portfolio results, the cost and amount of leverage, market conditions, how fully invested the portfolio is, and operating expenses, among other factors.

As noted above, the Fund's leverage produces a higher dividend for shareholders than the same portfolio would without utilizing leverage. Leverage also magnifies the effect of price movements on the Fund's NAV per share.


1



For the year ended December 31, 2019, in which high yield bond market performed well, leverage increased the Fund's total return. Of course, in an unfavorable market, leverage would decrease the Fund's total return.

  

Total Returns for the Periods Ending December 31, 2020

 
  

1 Year

 

3 Years Cumulative

 
New America High Income Fund
(Stock Price and Dividends)*
  

30.09

%

  

24.01

%

 
New America High Income Fund
(NAV and Dividends)*
  

22.03

%

  

28.23

%

 

Credit Suisse High Yield Index

  

14.00

%

  

19.20

%

 

Sources: Credit Suisse and The New America High Income Fund, Inc.

Past performance is no guarantee of future results. Total return assumes the reinvestment of dividends.

The Credit Suisse High Yield Index (the "Index") is an unmanaged index. Unlike the Fund, the Index has no trading activity, expenses or leverage.

*  Returns are historical and are calculated by determining the percentage change in NAV or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Because the Fund's shares may trade at either a discount or premium to the Fund's NAV per share, returns based upon the stock price and dividends will tend to differ from those derived from the underlying change in NAV and dividends. The variance between the Fund's total return based on stock price and dividends and the total return based on the Fund's NAV and dividends is due to the narrowing of the stock price discount to the NAV over the last year.

Commentary by T. Rowe Price Associates, Inc.
Market Review

The high yield market returned approximately 14% in 2019, according to the Index. U.S. Treasury yields fell during the second quarter, as slowing economic growth and tariff concerns led to increasingly dovish signals from the Federal Reserve (the "Fed") and other developed market central banks. At its June 2019 meeting, the Fed noted increased economic uncertainty and signaled a willingness to cut rates, if necessary, to sustain economic expansion. The Fed reduced interest rates in July 2019 and subsequently announced two additional rate cuts, moving the Fed funds rate to a target range of 1.50% to 1.75%. The yield of the 30-year Treasury bond hit a record low in August 2019, and the benchmark 10-year U.S. Treasury note's yield fell to its lowest level since 2016. After starting the year at 2.69%, the yield of the 10-year U.S. Treasury note ended 2019 at 1.92%.

For the first time ever, higher quality issues within the high yield asset class outperformed lower quality credits in a year where the high yield market produced double-digit gains. Bonds rated BB and B returned over 15%, compared with the 12% return of lower-quality credits, partly due to higher quality bonds having longer-duration profiles that benefitted from the decline in interest rates. However, this trend reversed in December 2019 as an abrupt pivot in risk sentiment helped buoy some of the market's most speculative credits that, otherwise, had been under pressure during most of the year. This was especially evident in the energy sector, where CCC-rated names rallied 9% during the month, after being down 40% for the first nine months of the year.

The high yield market was buoyed by new cash from retail investors totaling nearly $20 billion. Despite net positive new issuance in 2019 (i.e., new issuance was greater than maturities), demand for high yield issues vastly outstripped supply, resulting in the largest yearly supply shortfall since J.P. Morgan began tracking the data in 1993. This provided significant technical market support. Refinancing existing debt to extend maturities continued to be the dominant use of proceeds, which supported lower default expectations.


2



The yield spread of the Index relative to U.S. Treasuries tightened by 161 basis points in 2019, ending the period at 414 basis points, with a yield-to-worst of 5.81%. These levels are lower than the long-term averages of approximately 604 basis points and 8.80%, respectively. The J.P. Morgan par-weighted default rate tracked higher, ending the year at 2.63%—an increase from 1.83% at the end of 2018—but remaining low relative to the historical average of 3.70%.

Strategy Review

The portfolio was well positioned for the bifurcated high yield market return environment until December, when CCC-rated bonds outpaced higher-quality issues. This return dynamic was most apparent in the energy sector, where the Fund's defensive positioning and underweight had benefitted relative performance in every month prior to December. However, rising oil prices resulted in a December rally in CCC-rated credits in the exploration & production and services sub-sectors not owned in the Fund. For the full year, however, credit selection in energy was, by far, the largest contributor to the portfolio's outperformance relative to the Index. We maintain a long-term bearish outlook for oil that is driven by oversupply concerns.

Credit selection in media/telecom, healthcare, and metals/minerals also benefited the portfolio. European cable and mobile services provider Altice was a significant contributor in the media/telecom space, following asset sales and renewed management focus on improving operations. Security selection in the healthcare segment also contributed to relative performance due, in part, to Avantor, a leading provider of product and service solutions to laboratory and production companies. With respect to Avantor, a significant acquisition has created synergies, the company's end markets are improving, and its initial public offering in the second quarter was supportive of its credit profile. Fund holding Constellium, a downstream aluminum producer, has raised earnings growth estimates, and its management team continues to focus on achieving a BB-rated capital structure.

Credit selection within the retail industry was the primary detractor from relative performance. Changes to consumer behavior, including increased internet shopping and online competition, are pushing the retail industry away from traditional brick-and-mortar businesses. Jo-Ann Stores is one of the nation's largest specialty retailers of fabrics and crafts. Our thesis for the company was that customers' preference for a hands-on shopping experience for its type of merchandise somewhat insulates it from online competition. While this is still largely true, the securities traded significantly lower during the period. The price deterioration was due to increased competition from two brick-and-mortar peers, including one that has returned to aggressive promotions that have cut into Jo-Ann Stores' same store sales and earnings, as well as tariff headwinds and diminishing liquidity. We eliminated exposure to the name.

We have moved toward a more defensive positioning, as it appears there is currently less relative value in the high yield market than in early 2019. Relative to the portfolio's positioning at the beginning of the year, we endeavored to create a less cyclical and more defensive "all weather" portfolio. We have increased the portfolio's investment in utilities, which, in our view, is one of the most attractive and defensive industries in a slowing economy.

Accounting for approximately 8.7% of the Fund's holdings, as of December 31, 2019, floating rate bank loans represent the largest off-Index allocation in the portfolio. The senior secured status and low duration profile of bank loans have historically produced less volatile returns relative to high yield bonds. The loan market has performed well, despite three Fed interest rate cuts in 2019. Issuers in the bank loan market are generally fundamentally sound, and the bank loan default rate is expected to remain below its long-term average.


3



Outlook

High yield bonds typically perform well against a backdrop of low interest rates and steady economic growth, as high yield issuers are generally more sensitive to macroeconomic factors. The economic cycle is a year older, coupons are lower, and credit spreads are tighter. We believe that the economic expansion will continue, although the pace of growth could slow.

Over the past year, capital appreciation due to falling interest rates bolstered the performance of the high yield asset class. If the Fed remains on hold following its recent rate cuts, lower interest rates are unlikely to be a performance tailwind in 2020. We do not expect to replicate the robust gains of the past year in 2020. Aside from a few troubled industries, high yield company fundamentals are largely solid, and maturities have been extended. The significant increase in the average quality of the high yield market supports the case for a default rate that should remain well below the historical average.

As always, we aim to deliver high current income, while seeking to contain volatility inherent to the high yield market. Our team maintains a commitment to credit research and risk-conscious investing that has led to favorable returns for our high yield clients over various market cycles.

Sincerely,

 

 
Ellen E. Terry
President
The New America High Income Fund, Inc.
 Rodney M. Rayburn
Vice President
T. Rowe Price Associates, Inc.
 

Past performance is no guarantee of future results. The views expressed in this update are as of the date of this letter. These views and any portfolio holdings discussed in the update are subject to change at any time based on market or other conditions. The Fund and T. Rowe Price Associates, Inc. disclaim any duty to update these views, which may not be relied upon as investment advice. In addition, references to specific companies' securities should not be regarded as investment recommendations or indicative of the Fund's portfolio as a whole.


4



The New America High Income Fund, Inc.

Industry Summary
December 31, 2019 (Unaudited)
 As a Percent of
Total Investments*
 

Energy

  

14.75

%

 

Cable Operators

  

10.89

%

 

Healthcare

  

9.37

%

 

Financial

  

7.84

%

 

Utilities

  

6.87

%

 

Services

  

6.22

%

 

Broadcasting

  

5.49

%

 

Metals & Mining

  

4.62

%

 

Gaming

  

4.03

%

 

Information Technology

  

4.00

%

 

Satellites

  

3.39

%

 

Wireless Communications

  

3.12

%

 

Food/Tobacco

  

2.61

%

 

Chemicals

  

2.27

%

 

Container

  

2.10

%

 

Automotive

  

1.64

%

 

Aerospace & Defense

  

1.47

%

 

Manufacturing

  

1.35

%

 

Other Telecommunications

  

1.25

%

 

Supermarkets

  

1.25

%

 

Consumer Products

  

1.24

%

 

Entertainment & Leisure

  

1.21

%

 

Building Products

  

0.71

%

 

Restaurants

  

0.55

%

 

Lodging

  

0.46

%

 

Building & Real Estate

  

0.29

%

 

Airlines

  

0.17

%

 

Retail

  

0.08

%

 

Publishing

  

0.08

%

 

Short-Term Investments

  

0.68

%

 

Total Investments

  

100.00

%

 

*  Percentages do not match the industry percentages in the Schedule of Investments because due to the Fund's leverage total investments exceed net assets by 1.38 times.

Moody's Investors Service Ratings (1)
December 31, 2019 (Unaudited)
 As a Percent of
Total Investments
 

Short-Term Investments P-1

  

0.68

%

 

Baa2

  

0.18

%

 

Baa3

  

0.98

%

 

Total Baa

  

1.16

%

 

Ba1

  

6.02

%

 

Ba2

  

9.27

%

 

Ba3

  

12.31

%

 

Total Ba

  

27.60

%

 

B1

  

11.99

%

 

B2

  

16.86

%

 

B3

  

21.04

%

 

Total B

  

49.89

%

 

Caa1

  

8.98

%

 

Caa2

  

6.06

%

 

Total Caa

  

15.04

%

 

Unrated

  

2.38

%

 

Equity

  

3.25

%

 

Total Investments

  

100.00

%

 

(1)  SOURCE: Moody's Investors Service, Inc. This table compiles the ratings assigned by Moody's to the Fund's holdings.


5



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — 119.80% (d)(f)

 

Aerospace & Defense — 1.63%

 

$

10

  Bombardier, Inc., Senior Notes,
6%, 10/15/22 (g)
 

Caa1

 

$

10

  
 

175

  Bombardier, Inc., Senior Notes,
7.50%, 12/01/24 (g)
 

Caa1

  

184

  
 

885

  Bombardier, Inc., Senior Notes,
8.75%, 12/01/21 (g)
 

Caa1

  

970

  
 

485

  F-Brasile S.p.A., Senior Notes,
7.375%, 08/15/26 (g)
 

B2

  

500

  
 

175

  Moog, Inc., Senior Notes,
4.25%, 12/15/27 (g)
 

Ba3

  

178

  
 

1,830

  Transdigm Holdings UK, plc,
Senior Notes,
6.25%, 03/15/26 (g)
 

Ba3

  

1,981

  
   

3,823

  

Airlines — .24%

 
 

71

  American Airlines Group,
Senior Notes,
5.625%, 07/15/22 (g)
 

(e)

  

72

  
 

55

  United Continental Holdings,
Senior Notes,
5%, 02/01/24
 

Ba3

  

59

  
 

430

  Virgin Australia Holding Limited,
Senior Notes,
8.125%, 11/15/24 (g)
 

B3

  

427

  
   

558

  

Automotive — 2.11%

 
 

1,006

  Ford Motor Credit Company, LLC,
Senior Notes,
5.75%, 02/01/21
 

Baa3

  

1,037

  
 

2,690

  Panther BF Aggregator 2 L.P.,
Senior Notes,
8.50%, 05/15/27 (g)
 

B3

  

2,851

  
 

1,080

  Tesla Inc., Senior Notes,
5.30%, 08/15/25 (g)
 

Caa1

  

1,048

  
   

4,936

  

Broadcasting — 6.59%

 
 

675

  Clear Channel Outdoor Holdings,
Inc., Senior Notes,
5.125%, 08/15/27 (g)
 

B1

  

702

  
 

1,987

  Clear Channel Worldwide Holdings,
Inc., Senior Subordinated
Notes, 9.25%, 02/15/24 (g)
 

Caa2

  

2,201

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

1,205

  Diamond Sports Group, LLC,
Senior Notes,
5.375%, 08/15/26 (g)
 

Ba2

 

$

1,217

  
 

470

  Diamond Sports Group, LLC,
Senior Notes,
6.625%, 08/15/27 (g)
 

B2

  

457

  
 

240

  iHeart Communications, Inc.,
Senior Notes,
5.25%, 08/15/27 (g)
 

B1

  

251

  
 

128

  iHeart Communications, Inc.,
Senior Notes,
6.375%, 05/01/26
 

B1

  

139

  
 

3,217

  iHeart Communications, Inc.,
Senior Notes,
8.375%, 05/01/27
 

Caa1

  

3,555

  
 

800

  Lionsgate Capital Holdings LLC,
Senior Notes,
6.375%, 02/01/24 (g)
 

B2

  

828

  
 

1,365

  MDC Partners, Inc., Senior Notes,
6.50%, 05/01/24 (g)
 

B3

  

1,235

  
 

630

  Nexstar Broadcasting, Inc.,
Senior Notes,
5.625%, 08/01/24 (g)
 

B3

  

657

  
 

550

  Nexstar Escrow, Inc., Senior Notes,
5.625%, 07/15/27 (g)
 

B3

  

579

  
 

445

  Outfront Media Capital, LLC,
Senior Notes,
5%, 08/15/27 (g)
 

B1

  

466

  
 

360

  Scripps Company, Senior Notes,
5.875%, 07/15/27 (g)
 

B3

  

377

  
 

560

  Sirius XM Radio, Inc., Senior Notes,
4.625%, 07/15/24 (g)
 

Ba3

  

585

  
 

620

  Sirius XM Radio, Inc., Senior Notes,
5%, 08/01/27 (g)
 

Ba3

  

654

  
 

760

  Terrier Media Buyer, Inc.,
Senior Notes,
8.875%, 12/15/27 (g)
 

Caa1

  

803

  
 

700

  Townsquare Media, Inc.,
Senior Notes,
6.50%, 04/01/23 (g)
 

B3

  

710

  
   

15,416

  

Building & Real Estate — .40%

 
 

425

  Taylor Morrison Communities, Inc.,
Senior Notes,
5.875%, 04/15/23 (g)
 

Ba3

  

458

  

The accompanying notes are an integral part of these financial statements.
6



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

$

470

  Weekley Homes LLC, Senior Notes,
6.625%, 08/15/25
 

B1

 

$

489

  
   

947

  

Building Products — .87%

 
 

680

  ABC Supply Company, Inc.,
Senior Notes,
5.875%, 05/15/26 (g)
 

B3

  

722

  
 

295

  New Enterprise Stone and Lime
Company, Inc., Senior Notes,
6.25%, 03/15/26 (g)
 

B1

  

309

  
 

470

  PGT Innovations, Inc.,
Senior Notes,
6.75%, 08/01/26 (g)
 

B2

  

503

  
 

290

  Summit Materials LLC,
Senior Notes,
5.125%, 06/01/25 (g)
 

B3

  

298

  
 

200

  Summit Materials LLC,
Senior Notes,
6.50%, 03/15/27 (g)
 

B3

  

216

  
   

2,048

  

Cable Operators — 15.01%

 
 

1,600

  Altice Financing S.A., Senior Notes,
7.50%, 05/15/26 (g)
 

B2

  

1,720

  
 

810

  Altice France S.A., Senior Notes,
5.50%, 01/15/28 (g)
 

B2

  

831

  
 

1,400

  Altice France S.A., Senior Notes,
7.375%, 05/01/26 (g)
 

B2

  

1,500

  
 

605

  Altice France S.A.,
Senior Notes,
8.125%, 02/01/27 (g)
 

B2

  

685

  
 

2,890

  Altice Luxembourg S.A.,
Senior Notes,
7.625%, 02/15/25 (g)
 

Caa1

  

2,995

  
 

1,120

  Altice Luxembourg S.A.,
Senior Notes,
10.50%, 05/15/27 (g)
 

Caa1

  

1,284

  
 

475

  C&W Senior Financing Designated
Activity, Senior Notes,
6.875%, 09/15/27 (g)
 

B2

  

506

  
 

2,260

  CCO Holdings, LLC, Senior Notes,
5.00%, 02/01/28 (g)
 

B1

  

2,370

  
 

1,658

  CCO Holdings, LLC, Senior Notes,
5.125%, 05/01/27 (g)
 

B1

  

1,749

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

660

  CCO Holdings, LLC, Senior Notes,
5.375%, 06/01/29 (g)
 

B1

 

$

705

  
 

1,130

  CCO Holdings, LLC, Senior Notes,
5.50%, 05/01/26 (g)
 

B1

  

1,189

  
 

865

  CSC Holdings, LLC, Senior Notes,
5.75%, 01/15/30 (g)
 

B3

  

921

  
 

1,210

  CSC Holdings, LLC, Senior Notes,
6.50%, 02/01/29 (g)
 

Ba3

  

1,349

  
 

1,300

  CSC Holdings, LLC, Senior Notes,
6.625%, 10/15/25 (g)
 

Ba3

  

1,380

  
 

605

  CSC Holdings, LLC, Senior Notes,
7.50%, 04/01/28 (g)
 

B3

  

683

  
 

1,215

  CSC Holdings, LLC, Senior Notes,
7.75%, 07/15/25 (g)
 

B3

  

1,292

  
 

1,135

  CSC Holdings, LLC, Senior Notes,
10.875%, 10/15/25 (g)
 

B3

  

1,267

  
 

855

  Dish DBS Corporation, Senior Notes,
5.875%, 11/15/24
 

B1

  

871

  
 

835

  Dish DBS Corporation, Senior Notes,
7.75%, 07/01/26
 

B1

  

883

  
 

555

  GCI LLC, Senior Notes,
6.625%, 06/15/24 (g)
 

B3

  

600

  
 

225

  LCPR Senior Secured Notes,
6.75%, 10/15/27 (g)
 

B1

  

240

  
 

770

  Netflix, Inc., Senior Notes,
5.375%, 11/15/29 (g)
 

Ba3

  

818

  
 

1,555

  Netflix, Inc., Senior Notes,
5.875%, 11/15/28
 

Ba3

  

1,720

  
 

2,625

  Netflix, Inc., Senior Notes,
6.375%, 05/15/29
 

Ba3

  

2,963

  
 

665

  Radiate Holdco, Senior Notes,
6.875%, 02/15/23 (g)
 

(e)

  

680

  
 

615

  UPCB Finance IV Ltd, Senior Notes,
5.375%, 01/15/25 (g)
 

Ba3

  

632

  
 

310

  Videotron Ltee, Senior Notes,
5%, 07/15/22
 

Ba1

  

327

  
 

355

  Videotron Ltee, Senior Notes,
5.125%, 04/15/27 (g)
 

Ba1

  

380

  
 

490

  Virgin Media Secured Finance, Plc,
Senior Notes,
5.50%, 08/15/26 (g)
 

Ba3

  

511

  
 

1,186

  VTR Finance B.V., Senior Notes,
6.875%, 01/15/24 (g)
 

B1

  

1,208

  

The accompanying notes are an integral part of these financial statements.
7



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

$

845

  Ziggo Bond Finance B.V.,
Senior Notes,
6%, 01/15/27 (g)
 

B3

 

$

883

  
   

35,142

  

Chemicals — 3.12%

 
 

275

  Compass Minerals International,
Inc., Senior Notes,
6.75%, 12/01/27 (g)
 

B1

  

292

  
 

180

  Consolidated Energy Finance,
Senior Notes,
6.50%, 05/15/26 (g)
 

B1

  

169

  
 

420

  Consolidated Energy Finance,
Senior Notes,
6.875%, 06/15/25 (g)
 

B1

  

401

  
 

1,440

  CVR Partners, L.P., Senior Notes,
9.25%, 06/15/23 (g)
 

B2

  

1,505

  
 

540

  Element Solutions, Inc.,
Senior Notes,
5.875%, 12/01/25 (g)
 

B2

  

563

  
 

1,520

  Kissner Holdings L.P., Senior Notes,
8.375%, 12/01/22 (g)
 

B3

  

1,590

  
 

200

  Kraton Polymers LLC, Senior Notes,
5.25%, 05/15/26 (g) (EUR)
 

B3

  

232

  
 

560

  Kraton Polymers LLC, Senior Notes,
7%, 04/15/25 (g)
 

B3

  

577

  
 

630

  Neon Holdings, inc., Senior Notes,
10.125%, 04/01/26 (g)
 

B3

  

627

  
 

780

  OCI N.V., Senior Notes,
6.625%, 04/15/23 (g)
 

B1

  

810

  
 

520

  Univar Solutions USA, Senior Notes,
5.125%, 12/01/27 (g)
 

B2

  

543

  
   

7,309

  

Consumer Products — 1.59%

 
 

605

  Avon International, Operating
Company, Senior Notes,
7.875%, 08/15/22 (g)
 

Ba1

  

631

  
 

235

  Energizer Holdings, Inc.,
Senior Notes,
7.75%, 01/15/27 (g)
 

B2

  

263

  
 

325

  Mattel Inc., Senior Notes,
5.875%, 12/15/27 (g)
 

B1

  

342

  
 

950

  Prestige Brands, Inc., Senior Notes,
6.375%, 03/01/24 (g)
 

B3

  

986

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

670

  Tempur Sealy International, Inc.,
Senior Notes,
5.50%, 06/15/26
 

B1

 

$

705

  
 

775

  Tempur Sealy International, Inc.,
Senior Notes,
5.625%, 10/15/23
 

B1

  

796

  
   

3,723

  

Container — 2.56%

 
 

975

  Ardagh Packaging Finance plc,
Senior Notes,
5.25%, 08/15/27 (g)
 

B3

  

1,023

  
 

500

  Ardagh Packaging Finance plc,
Senior Notes,
6%, 02/15/25 (g)
 

B3

  

524

  
 

155

  Berry Global Escrow Corporation,
Senior Notes,
5.625%, 07/15/27 (g)
 

B2

  

167

  
 

100

  Crown Cork and Seal Company,
Inc., Senior Notes,
7.375%, 12/15/26
 

B1

  

119

  
 

203

  Kleopatra Holdings 1 S.C.A.,
Senior Notes,
9.25%, 06/30/23 (k) (EUR)
 

(e)

  

109

  
 

865

  Mauser Packaging Solutions,
Senior Notes,
7.25%, 04/15/25 (g)
 

Caa2

  

856

  
 

325

  Pactiv Corporation, Senior Notes,
7.95%, 12/15/25
 

Caa1

  

369

  
 

1,235

  Reynolds Group Issuer, Inc.,
Senior Notes,
7%, 07/15/24 (g)
 

Caa1

  

1,278

  
 

100

  Trivium Packaging Finance B.V.,
Senior Notes,
3.75%, 08/15/26 (g) (EUR)
 

B2

  

119

  
 

295

  Trivium Packaging Finance B.V.,
Senior Notes,
5.50%, 08/15/26 (g)
 

B2

  

312

  
 

1,000

  Trivium Packaging Finance B.V.,
Senior Notes,
8.50%, 08/15/27 (g)
 

Caa2

  

1,113

  
   

5,989

  

Energy — 17.21%

 
 

375

  Antero Resources Corporation,
Senior Notes,
5.125%, 12/01/22
 

B1

  

336

  

The accompanying notes are an integral part of these financial statements.
8



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

$

633

  Archrock Partners, Senior Notes,
6%, 10/01/22
 

B3

 

$

639

  
 

310

  Archrock Partners, Senior Notes,
6.25%, 04/01/28 (g)
 

B2

  

319

  
 

555

  Archrock Partners, Senior Notes,
6.875%, 04/01/27 (g)
 

B2

  

586

  
 

757

  Berry Petroleum Company, LLC,
Senior Notes,
7%, 02/15/26 (g)
 

B3

  

702

  
 

160

  Bruin E&P Partners, LLC,
Senior Notes,
8.875%, 08/01/23 (g)
 

Caa1

  

104

  
 

985

  Carrizo Oil & Gas, Inc., Senior Notes,
6.25%, 04/15/23
 

B2

  

997

  
 

905

  Carrizo Oil & Gas, Inc., Senior Notes,
8.25%, 07/15/25
 

B2

  

928

  
 

795

  Cheniere Corpus Christi Holdings,
LLC, Senior Notes,
5.125%, 06/30/27
 

Ba1

  

881

  
 

525

  Cheniere Corpus Christi Holdings,
LLC, Senior Notes,
5.875%, 03/31/25
 

Ba1

  

591

  
 

800

  Cheniere Corpus Christi Holdings,
LLC, Senior Notes,
7%, 06/30/24
 

Ba1

  

922

  
 

760

  Cheniere Energy Partners, L.P.,
Senior Notes,
4.50%, 10/01/29 (g)
 

Ba2

  

781

  
 

275

  Cheniere Energy Partners, L.P.,
Senior Notes,
5.625%, 10/01/26
 

Ba2

  

291

  
 

710

  Chesapeake Energy Corporation,
Senior Notes,
11.50%, 01/01/25 (g)
 

Caa2

  

671

  
 

710

  Citgo Holding, Inc., Senior Notes,
9.25%, 08/01/24 (g)
 

Caa1

  

761

  
 

205

  Covey Park Energy, LLC,
Senior Notes,
7.50%, 05/15/25 (g)
 

B3

  

176

  
 

1,190

  CrownRock, L.P., Senior Notes,
5.625%, 10/15/25 (g)
 

B2

  

1,214

  
 

156

  CSI Compressco LP, Senior Notes,
7.25%, 08/15/22
 

Caa2

  

143

  
 

580

  CSI Compressco LP, Senior Notes,
7.50%, 04/01/25 (g)
 

B1

  

570

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

795

  DCP Midstream, LLC, Senior Notes,
6.75%, 09/15/37 (g)
 

Ba2

 

$

841

  
 

650

  DCP Midstream, LLC, Senior Notes,
7.375%, (h)
 

B1

  

611

  
 

470

  DCP Midstream, LLC, Senior Notes,
8.125%, 08/16/30
 

Ba2

  

576

  
 

465

  Endeavor Energy Resources, L.P.,
Senior Notes.
5.50%, 01/30/26 (g)
 

B1

  

480

  
 

598

  Endeavor Energy Resources, L.P.,
Senior Notes.
5.75%, 01/30/28 (g)
 

B1

  

628

  
 

565

  EnLink Midstream Partners, L.P.,
Senior Notes,
4.40%, 04/01/24
 

Ba1

  

548

  
 

1,090

  Exterran NRG Solutions,
Senior Notes,
8.125%, 05/01/25
 

B1

  

1,076

  
 

1,120

  Gulfport Energy Corporation,
Senior Notes,
6.375%, 05/15/25
 

B3

  

711

  
 

1,291

  Jagged Peak Energy LLC,
Senior Notes,
5.875%, 05/01/26
 

B3

  

1,331

  
 

625

  Kosmos Energy Ltd., Senior Notes,
7.125%, 04/04/26 (g)
 

B2

  

636

  
 

1,765

  Magnolia Oil and Gas Operating
LLC, Senior Notes,
6%, 08/01/26 (g)
 

B3

  

1,814

  
 

1,745

  Matador Resources Company,
Senior Notes,
5.875%, 09/15/26
 

B2

  

1,754

  
 

1,410

  NGL Energy Partners L.P.,
Senior Notes,
7.50%, 11/01/23
 

B2

  

1,410

  
 

1,230

  NGL Energy Partners L.P.,
Senior Notes,
7.50%, 04/15/26 (g)
 

B2

  

1,190

  
 

435

  Nustar Logistics, L.P., Senior Notes,
5.625%, 04/28/27
 

Ba2

  

447

  
 

500

  Nustar Logistics, L.P., Senior Notes,
6%, 06/01/26
 

Ba2

  

529

  
 

860

  Parsley Energy, LLC, , Senior Notes,
5.625%, 10/15/27 (g)
 

Ba3

  

908

  
 

1,165

  PDC Energy, Senior Notes,
5.75%, 05/15/26
 

B1

  

1,156

  

The accompanying notes are an integral part of these financial statements.
9



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

$

1,675

  Petrobras Global Finance,
Senior Notes,
7.375%, 01/17/27
 

Ba2

 

$

2,041

  
 

515

  QEP Resrouces, Inc., Senior Notes,
5.25%, 05/01/23
 

Ba3

  

511

  
 

490

  QEP Resrouces, Inc., Senior Notes,
5.625%, 03/01/26
 

Ba3

  

478

  
 

3,020

  Seven Generations Energy Ltd.,
Senior Notes,
5.375%, 09/30/25 (g)
 

Ba3

  

3,043

  
 

240

  Summit Midstream Holdings, LLC,
Senior Notes,
5.50%, 08/15/22
 

B1

  

212

  
 

230

  Summit Midstream Holdings, LLC,
Senior Notes,
5.75%, 04/15/25
 

B1

  

176

  
 

200

  Summit Midstream Partners, LP,
Senior Notes,
9.50%, (h)
 

B3

  

98

  
 

795

  Tallgrass Energy Partners, L.P.,
Senior Notes,
5.50%, 09/15/24 (g)
 

Ba3

  

799

  
 

295

  Targa Resources Partners, L.P.,
Senior Notes,
6.50%, 07/15/27 (g)
 

Ba3

  

323

  
 

435

  Targa Resources Partners, L.P.,
Senior Notes,
6.875%, 01/15/29 (g)
 

Ba3

  

482

  
 

785

  TransMontaigne Partners, L.P.,
Senior Notes
6.125%, 02/15/26
 

B3

  

771

  
 

445

  Transocean, Inc., Senior Notes,
5.875%, 01/15/24 (g)
 

B1

  

455

  
 

450

  USA Compression Partners, L.P.,
Senior Notes,
6.875%, 04/01/26
 

B3

  

473

  
 

390

  USA Compression Partners, L.P.,
Senior Notes,
6.875%, 09/01/27
 

B3

  

406

  
 

85

  Vine Oil & Gas, L.P., Senior Notes,
8.75%, 04/15/23 (g)
 

Caa2

  

42

  
 

905

  Vine Oil & Gas, L.P., Senior Notes,
9.75%, 04/15/23 (g)
 

Caa2

  

453

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

670

  Whiting Petroleum Corporation,
Senior Notes,
5.75%, 03/15/21
 

B2

 

$

633

  
 

603

  WPX Energy, Inc., Senior Notes
5.25%, 10/15/27
 

B1

  

636

  
   

40,290

  

Entertainment & Leisure — 1.67%

 
 

1,450

  AMC Entertainment Holdings,
Senior Subordinated Notes,
5.75%, 06/15/25
 

B3

  

1,334

  
 

448

  AMC Entertainment Holdings,
Senior Subordinated Notes,
5.875%, 11/15/26
 

B3

  

403

  
 

215

  Cedar Fair, L. P., Senior Notes,
5.25%, 07/15/29 (g)
 

B1

  

232

  
 

650

  Cedar Fair, L. P., Senior Notes,
5.375%, 04/15/27
 

B1

  

696

  
 

440

  Live Nation Entertainment Inc.,
Senior Notes,
4.75%, 10/15/27 (g)
 

Ba3

  

455

  
 

200

  Motion Bondco DAC, Senior Notes,
6.625%, 11/15/27 (g)
 

B3

  

211

  
 

545

  Silversea Cruise Finance Ltd.,
Senior Notes,
7.25%, 02/01/25 (g)
 

Baa2

  

576

  
   

3,907

  

Financial — 10.68%

 
 

695

  Acrisure, LLC, Senior Notes,
7%, 11/15/25 (g)
 

Caa2

  

671

  
 

890

  Acrisure, LLC, Senior Notes,
8.125%, 02/15/24 (g)
 

B2

  

966

  
 

390

  Acrisure, LLC, Senior Notes,
10.125%, 08/01/26 (g)
 

Caa2

  

418

  
 

325

  Alliant Holdings, Senior Notes,
6.75%, 10/15/27 (g)
 

Caa2

  

348

  
 

810

  AmWins Group, Inc., Senior Notes,
7.75%, 07/01/26 (g)
 

B3

  

895

  
 

1,685

  Banco Do Brasil S.A. (Cayman),
9% (h)
 

B2

  

1,910

  
 

700

  Banco Santander S.A., Senior Notes,
6.75%, (h) (EUR)
 

Ba1

  

866

  
 

345

  Barclays PLC,
7.875%, (h) (GBP)
 

Ba3

  

507

  
 

340

  Barclays PLC,
7.875%, (h) (GBP)
 

Ba3

  

499

  

The accompanying notes are an integral part of these financial statements.
10



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

$

330

  Cabot Financial (Luxembourg) S.A.,
Senior Notes,
7.50%, 10/01/23 (GBP)
 

B1

 

$

453

  
 

300

  Cabot Financial (Luxembourg) S.A.,
Senior Notes,
7.50%, 10/01/23 (g) (GBP)
 

B1

  

412

  
 

325

  CIT Group, Inc., Senior Notes,
5.25%, 03/07/25
 

Ba1

  

359

  
 

295

  CIT Group, Inc., Subordinate Notes,
6.125%, 03/09/28
 

Ba1

  

348

  
 

390

  Credit Agricole SA,
6.50%, (h) (EUR)
 

(e)

  

472

  
 

765

  Credit Suisse Group AG,
7.125%, (h)
 

Ba2

  

820

  
 

885

  Credit Suisse Group AG,
7.50%, (g)(h)
 

(e)

  

998

  
 

780

  DAE Funding, LLC, Senior Notes,
5.25%, 11/15/21 (g)
 

Ba2

  

809

  
 

750

  DNB Bank ASA, Senior Notes,
6.50%, (h)
 

Baa3

  

794

  
 

585

  GTCR AP Finance, Inc.,
Senior Notes,
8%, 05/15/27 (g)
 

Caa2

  

608

  
 

770

  Hub Holdings LLC, Senior Notes,
7%, 05/01/26 (g)
 

Caa2

  

816

  
 

1,305

  Icahn Enterprises, L.P., Senior Notes,
6.25%, 05/15/26
 

Ba3

  

1,390

  
 

980

  Itau Unibankco Holding S.A.,
Senior Notes,
6.125%, (g)(h)
 

B2

  

1,020

  
 

325

  Ladder Capital Finance Holdings
LLLP, Senior Notes,
5.875%, 08/01/21 (g)
 

Ba3

  

330

  
 

930

  LPL Holdings, Inc., Senior Notes,
5.75%, 09/15/25 (g)
 

B1

  

973

  
 

1,115

  Navient Corporation, Senior Notes,
6.125%, 03/25/24
 

Ba3

  

1,210

  
 

130

  Navient Corporation, Senior Notes,
6.75%, 06/25/25
 

Ba3

  

144

  
 

215

  Navient Corporation, Senior Notes,
6.75%, 06/15/26
 

Ba3

  

236

  
 

715

  Navient Corporation, Senior Notes,
7.25%, 09/25/23
 

Ba3

  

810

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

740

  Royal Bank of Scotland Group, plc,
Junior Subordinated Notes,
8.625% (h)
 

Ba2

 

$

796

  
 

755

  Springleaf Finance Corporation,
Senior Notes,
6.125%, 03/15/24
 

Ba3

  

829

  
 

390

  Springleaf Finance Corporation,
Senior Notes,
6.625%, 01/15/28
 

Ba3

  

438

  
 

810

  Springleaf Finance Corporation,
Senior Notes,
6.875%, 03/15/25
 

Ba3

  

920

  
 

300

  Springleaf Finance Corporation,
Senior Notes,
7.125%, 03/15/26
 

Ba3

  

347

  
 

450

  Standard Chartered PLC,
7.50%, (g)(h)
 

Ba1

  

482

  
 

1,050

  UBS Group AG, Senior Notes,
7.125%, (h)
 

Ba1

  

1,115

  
   

25,009

  

Food/Tobacco — 3.59%

 
 

1,425

  B&G Foods, Inc., Senior Notes,
5.25%, 04/01/25
 

B2

  

1,468

  
 

610

  B&G Foods, Inc., Senior Notes,
5.25%, 09/15/27
 

B2

  

609

  
 

1,405

  Chobani LLC., Senior Notes,
7.50%, 04/15/25 (g)
 

Caa2

  

1,409

  
 

770

  Cosan Luxembourg S.A.,
Senior Notes,
7%, 01/20/27 (g)
 

Ba2

  

839

  
 

245

  Darling Ingredients, Inc.,
Senior Notes,
5.25%, 04/15/27 (g)
 

Ba3

  

260

  
 

520

  FAGE International S.A.,
Senior Notes,
5.625%, 08/15/26 (g)
 

B2

  

477

  
 

1,330

  Minerva Luxembourg S.A.,
Senior Notes,
6.50%, 09/20/26 (g)
 

(e)

  

1,411

  
 

485

  Post Holdings, Inc., Senior Notes,
5.625%, 01/15/28 (g)
 

B2

  

521

  
 

330

  Post Holdings, Inc., Senior Notes,
5.75%, 03/01/27 (g)
 

B2

  

354

  
 

335

  Post Holdings, Inc., Senior Notes,
8%, 07/15/25 (g)
 

B2

  

358

  

The accompanying notes are an integral part of these financial statements.
11



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

$

700

  Sigma Holdco., B.V., Senior Notes,
7.875%, 05/15/26 (g)
 

B3

 

$

699

  
   

8,405

  

Gaming — 5.34%

 
 

580

  Boyd Gaming Corporation,
Senior Notes,
6%, 08/15/26
 

B3

  

623

  
 

460

  Caesar's Resorts, Senior Notes,
5.25%, 10/15/25 (g)
 

B3

  

476

  
 

275

  Cirsa Finance International, S.A.R.L.,
Senior Notes,
6.25%, 12/20/23 (g) (EUR)
 

B2

  

326

  
 

1,152

  Cirsa Finance International, S.A.R.L.,
Senior Notes,
7.875%, 12/20/23 (g)
 

B2

  

1,215

  
 

593

  Eldorado Resorts, Inc.,
Senior Notes,
6%, 09/15/26
 

B2

  

653

  
 

1,165

  International Game Technology Plc,
Senior Notes,
6.25%, 01/15/27 (g)
 

Ba2

  

1,311

  
 

200

  Melco Resorts Finance,
Senior Notes,
5.375%, 12/04/29 (g)
 

Ba2

  

206

  
 

315

  MGM China Holdings, Limited,
Senior Notes,
5.375%, 05/15/24 (g)
 

Ba3

  

328

  
 

315

  MGM China Holdings, Limited,
Senior Notes,
5.875%, 05/15/26 (g)
 

Ba3

  

334

  
 

435

  MGM Growth Prop. Operating
Partnership L.P., Senior Notes,
5.75%, 02/01/27 (g)
 

B1

  

486

  
 

605

  MGM Resorts International,
Senior Notes,
6%, 03/15/23
 

Ba3

  

665

  
 

325

  Scientific Games International Inc.,
Senior Notes,
7%, 05/15/28 (g)
 

Caa1

  

348

  
 

325

  Scientific Games International Inc.,
Senior Notes,
7.25%, 11/15/29 (g)
 

Caa1

  

353

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

1,240

  Scientific Games International Inc.,
Senior Notes,
8.25%, 03/15/26 (g)
 

Caa1

 

$

1,366

  
 

1,235

  Stars Group Holdings B.V.,
Senior Notes,
7%, 07/15/26 (g)
 

Caa1

  

1,332

  
 

390

  VICI Properties, Senior Notes,
4.625%, 12/01/29 (g)
 

B1

  

407

 ��
 

1,390

  Wynn Las Vegas, LLC, Senior Notes,
5.25%, 05/15/27 (g)
 

B1

  

1,475

  
 

585

  Wynn Macau Ltd., Senior Notes,
5.50%, 10/01/27 (g)
 

B1

  

608

  
   

12,512

  

Healthcare — 11.10%

 
 

770

  Avantor Inc., Senior Notes,
6%, 10/01/24 (g)
 

Ba2

  

820

  
 

4,505

  Avantor Inc., Senior Notes,
9%, 10/01/25 (g)
 

B3

  

5,034

  
 

1,495

  Bausch Health Companies, Inc.,
Senior Notes,
7%, 03/15/24 (g)
 

Ba2

  

1,555

  
 

760

  Bausch Health Companies, Inc.,
Senior Notes,
7.25%, 05/30/29 (g)
 

B3

  

867

  
 

1,920

  Bausch Health Companies, Inc.,
Senior Notes,
8.50%, 01/31/27 (g)
 

B3

  

2,189

  
 

1,060

  Bausch Health Companies, Inc.,
Senior Notes,
9%, 12/15/25 (g)
 

B3

  

1,204

  
 

1,600

  Bausch Health Companies, Inc.,
Senior Notes,
9.25%, 04/01/26 (g)
 

B3

  

1,840

  
 

155

  Catalent Pharma Solutions, Inc.,
Senior Notes,
5%, 07/15/27 (g)
 

B3

  

162

  
 

545

  Centene Corporation, Senior Notes,
4.25%, 12/15/27 (g)
 

Ba1

  

561

  
 

775

  Centene Corporation, Senior Notes,
4.625%, 12/15/29 (g)
 

Ba1

  

816

  
 

655

  Change Healthcare Holdings LLC,
Senior Notes,
5.75%, 03/01/25 (g)
 

Caa1

  

676

  
 

850

  DaVita Healthcare Partners, Inc.,
Senior Notes,
5%, 05/01/25
 

Ba3

  

873

  

The accompanying notes are an integral part of these financial statements.
12



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

$

850

  DaVita Healthcare Partners, Inc.,
Senior Notes,
5.125%, 07/15/24
 

Ba3

 

$

871

  
 

230

  Eagle Holding Company II, LLC,
Senior Notes,
7.625%, 05/15/22 (g)
 

Caa1

  

233

  
 

1,075

  Eagle Holding Company II, LLC,
Senior Notes,
7.75%, 05/15/22 (g)
 

Caa1

  

1,091

  
 

560

  Envision Healthcare Corporation,
Senior Notes,
8.75%, 10/15/26 (g)
 

Caa2

  

349

  
 

230

  HCA, Incorporated, Senior Notes,
5.625%, 09/01/28
 

Ba2

  

263

  
 

575

  HCA, Incorporated, Senior Notes,
5.875%, 02/15/26
 

Ba2

  

654

  
 

450

  HCA, Incorporated, Senior Notes,
5.875%, 02/01/29
 

Ba2

  

520

  
 

450

  MPT Operating Partnership, L.P.,
Senior Notes,
6.375%, 03/01/24
 

Ba1

  

465

  
 

25

  NVA Holdings, Inc, Senior Notes,
6.875%, 04/01/26 (g)
 

Caa2

  

27

  
 

210

  Regional Care Hospital Partners
Holdings, Inc., Senior Notes,
8.25%, 05/01/23 (g)
 

B1

  

223

  
 

1,030

  Regional Care Hospital Partners
Holdings, Inc., Senior Notes,
9.75%, 12/01/26 (g)
 

Caa1

  

1,166

  
 

435

  Select Medical Corporation,
Senior Notes,
6.25%, 08/15/26 (g)
 

B3

  

471

  
 

1,050

  Tenet Healthcare Corporation,
Senior Notes,
8.125%, 04/01/22
 

Caa1

  

1,162

  
 

575

  Teva Pharma Finance
Netherlands III BV, Senior Notes,
2.80%, 07/21/23
 

Ba2

  

533

  
 

360

  Teva Pharma Finance
Netherlands III BV, Senior Notes,
6%, 04/15/24
 

Ba2

  

363

  
 

970

  Teva Pharma Finance
Netherlands III BV, Senior Notes,
7.125%, 01/31/25 (g)
 

Ba2

  

992

  
   

25,980

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

Information Technology — 4.39%

 

$

60

  EIG Investors Corporation,
Senior Notes,
10.875%, 02/01/24
 

Caa1

 

$

60

  
 

630

  Qorvo, Inc., Senior Notes,
5.50%, 07/15/26
 

Ba1

  

669

  
 

1,200

  Refinitiv US Holdings, Inc.,
Senior Notes,
6.25%, 05/15/26 (g)
 

B2

  

1,310

  
 

310

  Refinitiv US Holdings, Inc.,
Senior Notes,
6.875%, 11/15/26 (g) (EUR)
 

Caa2

  

394

  
 

2,190

  Refinitiv US Holdings, Inc.,
Senior Notes,
8.25%, 11/15/26 (g)
 

Caa2

  

2,466

  
 

2,945

  Solera, LLC, Senior Notes,
10.50%, 03/01/24 (g)
 

Caa1

  

3,122

  
 

750

  SS&C Technologies, Inc.,
Senior Notes,
5.50%, 09/30/27 (g)
 

B2

  

801

  
 

620

  Uber Technologies, Inc.,
Senior Notes,
7.50%, 09/15/27 (g)
 

B3

  

635

  
 

780

  Uber Technologies, Inc.,
Senior Notes,
7.50%, 11/01/23 (g)
 

B3

  

816

  
   

10,273

  

Lodging — .63%

 
 

825

  Marriott Ownership Resorts, Inc.,
Senior Notes,
6.50%, 09/15/26
 

Ba3

  

899

  
 

550

  Ryman Hospitality Group,
Senior Notes,
4.75%, 10/15/27 (g)
 

B1

  

568

  
   

1,467

  

Manufacturing — 1.33%

 
 

1,509

  Apex Tool Group, LLC,
Senior Notes,
9%, 02/15/23 (g)
 

Caa1

  

1,358

  
 

260

  Colfax Corporation, Senior Notes,
6%, 02/15/24 (g)
 

Ba2

  

277

  
 

170

  Colfax Corporation, Senior Notes,
6.375%, 02/15/26 (g)
 

Ba2

  

185

  

The accompanying notes are an integral part of these financial statements.
13



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

$

1,055

  Sensata Technologies UK Financing
Company plc, Senior Notes,
6.25%, 02/15/26 (g)
 

Ba3

 

$

1,139

  
 

150

  Welbilt, Inc., Senior Notes,
9.50%, 02/15/24
 

Caa1

  

159

  
   

3,118

  

Metals & Mining — 5.80%

 
 

200

  Alcoa Nederland Holding B.V.,
Senior Notes,
6.75%, 09/30/24 (g)
 

Ba1

  

211

  
 

600

  Alcoa Nederland Holding B.V.,
Senior Notes,
7%, 09/30/26 (g)
 

Ba1

  

653

  
 

910

  Aleris International, Inc.,
Senior Notes,
10.75%, 07/15/23 (g)
 

Caa2

  

946

  
 

1,310

  Big River Steel, LLC, Senior Notes,
7.25%, 09/01/25 (g)
 

B3

  

1,379

  
 

1,000

  Constellium N.V., Senior Notes,
5.75%, 05/15/24 (g)
 

B2

  

1,028

  
 

1,795

  Constellium N.V., Senior Notes,
6.625%, 03/01/25 (g)
 

B2

  

1,862

  
 

610

  FMG Resources Pty. Ltd.,
Senior Notes,
5.125%, 05/15/24 (g)
 

Ba1

  

647

  
 

505

  FMG Resources Pty. Ltd.,
Senior Notes,
5.125%, 03/15/23 (g)
 

Ba1

  

533

  
 

310

  Freeport McMoran, Inc.,
Senior Notes,
5%, 09/01/27
 

Ba1

  

326

  
 

320

  Freeport McMoran, Inc.,
Senior Notes,
5.25%, 09/01/29
 

Ba1

  

342

  
 

845

  Freeport McMoran, Inc.,
Senior Notes,
5.40%, 11/14/34
 

Ba1

  

883

  
 

210

  Hecla Mining Company,
Senior Notes,
6.875%, 05/01/21
 

Caa2

  

209

  
 

595

  HudBay Minerals, Inc.,
Senior Notes,
7.25%, 01/15/23 (g)
 

B3

  

616

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

185

  HudBay Minerals, Inc.,
Senior Notes,
7.625%, 01/15/25 (g)
 

B3

 

$

195

  
 

785

  New Gold Inc., Senior Notes,
6.375%, 05/15/25 (g)
 

Caa1

  

728

  
 

630

  Novelis Corporation, Senior Notes,
6.25%, 08/15/24 (g)
 

B2

  

661

  
 

880

  Ryerson Inc.,
Senior Secured Notes,
11%, 05/15/22 (g)
 

B3

  

928

  
 

320

  Steel Dynamics, Inc., Senior Notes,
5%, 12/15/26
 

Baa3

  

340

  
 

165

  Steel Dynamics, Inc., Senior Notes,
5.50%, 10/01/24
 

Baa3

  

169

  
 

870

  Zekelman Industries, Senior Notes,
9.875%, 06/15/23 (g)
 

B3

  

917

  
   

13,573

  

Other Telecommunications — 1.40%

 
 

650

  Level 3 Financing, Inc., Senior Notes,
4.625%, 09/15/27 (g)
 

Ba3

  

665

  
 

225

  Level 3 Financing, Inc., Senior Notes,
5.25%, 03/15/26
 

Ba3

  

234

  
 

275

  Level 3 Financing, Inc., Senior Notes,
5.375%, 05/01/25
 

Ba3

  

284

  
 

780

  Zayo Group, LLC, Global Notes,
5.75%, 01/15/27 (g)
 

B3

  

793

  
 

1,255

  Zayo Group, LLC, Global Notes,
6.375%, 05/15/25
 

B3

  

1,293

  
   

3,269

  

Publishing — .12%

 
 

335

  Harland Clarke Holdings
Corporation, Senior Notes,
8.375%, 08/15/22 (g)
 

B3

  

273

  

Restaurants — .76%

 
 

170

  YUM Brands, Inc., Senior Notes,
4.75%, 01/15/30 (g)
 

B1

  

178

  
 

723

  YUM Brands, Inc., Senior Notes,
5.35%, 11/01/43
 

B1

  

721

  
 

760

  YUM Brands, Inc., Senior Notes,
6.875%, 11/15/37
 

B1

  

882

  
   

1,781

  

The accompanying notes are an integral part of these financial statements.
14



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

Retail — .12%

 

$

255

  William Carter Company,
Senior Notes,
5.625%, 03/15/27 (g)
 

Ba2

 

$

274

  

Satellites — 4.09%

 
 

815

  Connect Finco Sarl, Senior Notes,
6.75%, 10/01/26 (g)
 

B1

  

862

  
 

480

  Gogo Intermediate Financing,
Senior Notes,
9.875%, 05/01/24 (g)
 

B3

  

509

  
 

1,750

  Hughes Satellite Systems, Inc.,
Senior Notes,
6.625%, 08/01/26
 

B2

  

1,938

  
 

685

  Intelsat Jackson Holdings Ltd.,
Senior Notes,
8.50%, 10/15/24 (g)
 

Caa2

  

625

  
 

2,380

  Intelsat Jackson Holdings Ltd.,
Senior Notes,
9.50%, 09/30/22 (g)
 

B1

  

2,695

  
 

475

  Intelsat Jackson Holdings Ltd.,
Senior Notes,
9.75%, 07/15/25 (g)
 

Caa2

  

439

  
 

1,260

  Iridium Communications, Inc.,
Senior Notes,
10.25%, 04/15/23 (g)
 

Caa1

  

1,351

  
 

640

  Telesat Canada,
Senior Notes,
6.50%, 10/15/27 (g)
 

B3

  

666

  
 

450

  Viasat, Inc., Senior Notes,
5.625%, 04/15/27 (g)
 

B1

  

482

  
   

9,567

  

Services — 6.12%

 
 

610

  Allied Universal Holdco, LLC,
Senior Secured Notes,
9.75%, 07/15/27 (g)
 

Caa2

  

653

  
 

730

  Ascend Learning, LLC, Senior Notes,
6.875%, 08/01/25 (g)
 

Caa2

  

767

  
 

867

  Avis Budget Car Rental, LLC,
Senior Notes,
6.375%, 04/01/24 (g)
 

B1

  

900

  
 

590

  CDW LLC, Senior Notes,
4.25%, 04/01/28
 

Ba2

  

619

  
 

640

  EG Global Finance plc, Senior Notes,
6.75%, 02/07/25 (g)
 

B2

  

651

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

360

  EG Global Finance plc, Senior Notes,
8.50%, 10/30/25 (g)
 

B2

 

$

382

  
 

790

  Fair Isaac Corporation, Senior Notes,
5.25%, 05/15/26 (g)
 

Ba2

  

863

  
 

95

  GFL Enironmental, Inc.,
Senior Notes,
7%, 06/01/26 (g)
 

Caa2

  

100

  
 

780

  GFL Enironmental, Inc.,
Senior Notes,
8.50%, 05/01/27 (g)
 

Caa2

  

854

  
 

800

  HD Supply, Senior Notes,
5.375%, 10/15/26 (g)
 

Ba2

  

848

  
 

1,440

  H&E Equipment Services,
Senior Notes,
5.625%, 09/01/25
 

B2

  

1,512

  
 

840

  Hertz Corporation, Senior Notes,
5.50%, 10/15/24 (g)
 

B3

  

863

  
 

315

  Hertz Corporation, Senior Notes,
7.125%, 08/01/26 (g)
 

B3

  

341

  
 

1,470

  Laureate Education, Inc.,
Senior Notes,
8.25%, 05/01/25 (g)
 

B3

  

1,586

  
 

515

  MSCI, Inc., Senior Notes,
4%, 11/15/29 (g)
 

Ba2

  

522

  
 

515

  Performance Food Group, Inc.,
Senior Notes,
5.50%, 10/15/27 (g)
 

B1

  

548

  
 

660

  Prime Security Services Borrower,
LLC, Senior Notes,
5.25%, 04/15/24 (g)
 

Ba3

  

698

  
 

280

  Prime Security Services Borrower,
LLC, Senior Notes,
5.75%, 04/15/26 (g)
 

Ba3

  

303

  
 

709

  Prime Security Services Borrower,
LLC, Senior Notes,
9.25%, 05/15/23 (g)
 

B3

  

741

  
 

520

  United Rentals (North America), Inc.,
Senior Notes,
6.50%, 12/15/26
 

Ba3

  

571

  
   

14,322

  

Supermarkets — 1.72%

 
 

545

  Albertsons Companies, LLC,
Senior Notes,
5.875%, 02/15/28 (g)
 

B3

  

578

  

The accompanying notes are an integral part of these financial statements.
15



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CORPORATE DEBT SECURITIES — continued

 

$

1,007

  Albertsons Companies, LLC,
Senior Notes,
6.625%, 06/15/24
 

B3

 

$

1,054

  
 

370

  Albertsons Companies, LLC,
Senior Notes,
7.45%, 08/01/29
 

(e)

  

378

  
 

895

  Albertsons Companies, LLC,
Senior Notes,
7.50%, 03/15/26 (g)
 

B3

  

1,006

  
 

220

  Albertsons Companies, LLC,
Senior Notes,
8%, 05/01/31
 

(e)

  

227

  
 

680

  Iceland Bondco, Plc, Senior Notes,
4.625%, 03/15/25 (GBP)
 

B2

  

785

  
   

4,028

  

Utilities — 7.24%

 
 

535

  AES Corporation, Senior Notes,
5.125%, 09/01/27
 

Ba1

  

571

  
 

1,200

  AES Corporation, Senior Notes,
6%, 05/15/26
 

Ba1

  

1,278

  
 

795

  Calpine Corporation, Senior Notes,
5.125%, 03/15/28 (g)
 

B2

  

811

  
 

380

  Calpine Corporation, Senior Notes,
5.875%, 01/15/24 (g)
 

Ba2

  

388

  
 

723

  Clearway Energy Operating LLC,
Senior Notes,
5.75%, 10/15/25
 

Ba2

  

763

  
 

203

  Edison International, Senior Notes,
2.40%, 09/15/22
 

Baa3

  

201

  
 

635

  Eskom Holdings SOC Limited,
Senior Notes,
6.75%, 08/06/23
 

Caa1

  

647

  
 

1,695

  General Electric Company,
Senior Notes,
5% (h)
 

Baa3

  

1,661

  
 

815

  NextEra Energy Operating Partners,
L.P., Senior Notes,
4.25%, 09/15/24 (g)
 

Ba1

  

848

  
 

570

  NextEra Energy Operating Partners,
L.P., Senior Notes,
4.25%, 07/15/24 (g)
 

Ba1

  

593

  
 

670

  NextEra Energy Operating Partners,
L.P., Senior Notes,
4.50%, 09/15/27 (g)
 

Ba1

  

697

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

620

  NiSource, Incorporated,
Senior Notes,
5.65%, (h)
 

(e)

 

$

635

  
 

340

  NRG Energy, Inc., Senior Notes,
5.25%, 06/15/29 (g)
 

Ba2

  

368

  
 

540

  NRG Energy, Inc., Senior Notes,
6.625%, 01/15/27
 

Ba2

  

587

  
 

2,795

  NRG Energy, Inc., Senior Notes,
7.25%, 05/15/26
 

Ba2

  

3,054

  
 

1,795

  TerraForm Global Operating,
LLC, Senior Notes
6.125%, 03/01/26 (g)
 

Ba3

  

1,867

  
 

145

  Vistra Energy Corporation,
Senior Notes,
8%, 01/15/25 (g)
 

Ba2

  

151

  
 

530

  Vistra Energy Corporation,
Senior Notes,
8.125%, 01/30/26 (g)
 

Ba2

  

567

  
 

390

  Vistra Operations Company, LLC,
Senior Notes,
5%, 07/31/27 (g)
 

Ba2

  

407

  
 

800

  Vistra Operations Company, LLC,
Senior Notes,
5.50%, 09/01/26 (g)
 

Ba2

  

846

  
   

16,940

  

Wireless Communications — 2.37%

 
 

770

  MTN (Mauritius) Investments, Ltd.,
Senior Notes,
6.50%, 10/13/26
 

Ba1

  

853

  
 

410

  Sprint Communications, Inc.,
Senior Notes,
11.50%, 11/15/21
 

B3

  

468

  
 

2,310

  Sprint Corporation, Senior Notes,
7.125%, 06/15/24
 

B3

  

2,489

  
 

1,455

  T-Mobile, USA, Inc., Senior Notes,
6.50%, 01/15/26
 

Ba2

  

1,553

  
 

180

  VB-S1 Issuer LLC, Senior Notes,
6.901%, 06/15/46 (g)
 

(e)

  

189

  
   

5,552

  
  Total Corporate Debt Securities
(Total cost of $270,144)
    

280,431

  

The accompanying notes are an integral part of these financial statements.
16



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

CONVERTIBLE DEBT SECURITIES — .04% (d)(f)

 

Energy — .04%

 

$

115

  Cheniere Energy, Inc., Senior Notes,
4.25%, 03/15/45
 

(e)

 

$

90

  
  Total Convertible Debt Securities
(Total cost of $89)
    

90

  

BANK DEBT SECURITIES — 12.58% (d)(f)

 

Aerospace & Defense — .40%

 
 

324

  Dynasty Acquisition Co., Inc.,
5.945%, 04/06/26
 

B2

  

326

  
 

603

  Dynasty Acquisition Co., Inc.,
5.945%, 04/06/26
 

B2

  

607

  
   

933

  

Automotive — .15%

 
 

354

  Panther BF Aggregator 2 LP,
5.305%, 04/30/26
 

Ba3

  

355

  

Broadcasting — .76%

 
 

570

  iHeart Communications, Inc.,
8.443%, 01/30/20 (a)(b)(i)
 

(e)

  

416

  
 

361

  iHeart Communications, Inc.,
5.691%, 05/01/26
 

B1

  

364

  
 

1,010

  Univision Communications,
4.549%, 03/15/24
 

B2

  

996

  
   

1,776

  

Building Products — .10%

 
 

249

  SRS Distribution, Inc.,
5.049%, 05/23/25
 

B3

  

247

  

Consumer Products — .11%

 
 

267

  ABG Intermediate Holdings 2, LLC,
5.299%, 09/26/24
 

B1

  

268

  

Container — .33%

 
 

788

  BWAY Holding Company, Inc.,
5.234%, 04/03/24
 

B2

  

784

  

Energy — 1.35%

 
 

359

  Brazos Delaware II, LLC,
5.785%, 05/21/25
 

B3

  

306

  
 

810

  Chesapeake Energy Corporation,
9.71%, 06/09/24
 

B3

  

833

  
Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

$

977

  Felix Energy LLC,
8.401%, 08/09/22,
Acquisition Date
08/09/17-03/01/19,
Cost $967 (i)(j)
 

(e)

 

$

967

  
 

570

  Prairie ECI Aquiror LP,
6.695%, 03/11/26
 

B1

  

565

  
 

485

  Stonepeak Lonestar,
6.299%, 10/19/26
 

B1

  

484

  
   

3,155

  

Financial — .13%

 
 

296

  Hub International Limited,
4.690%, 04/25/25
 

B2

  

295

  

Gaming — .21%

 
 

481

  Scientific Games International, Inc.,
4.549%, 08/14/24
 

B1

  

482

  

Healthcare — 1.22%

 
 

625

  Regional Care Hospital Partners,
6.299%, 11/17/25
 

B1

  

630

  
 

960

  Sunshine Luxembourg VII,
6.195%, 10/01/26
 

B2

  

968

  
 

794

  Wink Holdco, Inc.,
4.799%, 12/02/24
 

B2

  

794

  
 

470

  Wink Holdco, Inc.,
8.55%, 12/01/25
 

Caa1

  

470

  
   

2,862

  

Informational Technologies — 1.12%

 
 

789

  Cypress Intermediate
Holdings III, Inc.,
4.55%, 04/29/24
 

B2

  

790

  
 

1,181

  Financial & Risk US Holdings, Inc.,
5.049%, 10/01/25
 

B2

  

1,191

  
 

631

  Infor (US) Inc.,
4.695%, 02/01/22
 

Ba3

  

634

  
   

2,615

  

Manufacturing — .13%

 
 

303

  Filtration Group Corporation,
4.799%, 03/29/25
 

B2

  

304

  

Metals and Mining — .57%

 
 

1,281

  Aleris International, Inc.,
6.555%, 02/27/23
 

B3

  

1,280

  

The accompanying notes are an integral part of these financial statements.
17



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

BANK DEBT SECURITIES — continued

 

$

54

  Big River Steel, LLC,
6.945%, 08/23/23
 

B3

 

$

53

  
   

1,333

  

Other Telecommunications — .33%

 
 

784

  Stonepeak Claremont Merger,
4.799%, 03/20/24
 

B2

  

775

  

Satellites — .59%

 
 

1,355

  Iridium Satellite LLC,
5.542%, 11/04/26
 

B1

  

1,371

  

Services — 2.45%

 
 

1,563

  Kronos, Inc.,
4.909%, 11/01/23
 

B2

  

1,570

  
 

1,650

  Kronos, Inc.,
10.159%, 11/01/24
 

Caa2

  

1,680

  
 

320

  Renaissance Holding Corp.,
8.799%, 05/29/26
 

Caa2

  

299

  
 

623

  Travelport Finance
(Luxembourg) S.a.r.l.,
6.945%, 05/29/26
 

B2

  

581

  
 

1,174

  Ultimate Software Group, Inc.,
5.549%, 05/04/26
 

B2

  

1,181

  
 

424

  Weight Watchers,
6.72%, 11/29/24
 

Ba2

  

424

  
   

5,735

  

Utilities — .70%

 
 

629

  Brookfield Wec Holdings, Inc.,
5.299%, 08/01/25
 

B2

  

633

  
 

758

  

PG&E Corp., 3.97%, 12/31/20

 

(e)

  

758

  
 

252

  PG&E Corp., Delayed Draw,
2.25%, 12/31/20
 

(e)

  

252

  
   

1,643

  

Wireless Communications — 1.93%

 
 

4,460

  Asurion LLC,
8.299%, 08/04/25
 

B3

  

4,511

  
  Total Bank Debt Securities
(Total cost of $29,437)
    

29,444

  

Shares

   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

PREFERRED STOCK — 3.98% (d)(f)

 

Energy — 1.73%

 
 

3,750

  Targa Resources Corp., Series A,
Convertible, 9.50%,
Acquisition Date 10/26/17,
Cost $4,133 (j)
 

(e)

 

$

4,051

  

Healthcare — .60%

 
 

22,270

  Avantor, Inc.,
Series A, Convertible, 6.25%,
 

(e)

  

1,403

  

Manufacturing — .40%

 
 

790

  Danaher Corporation,
Convertible, 4.75%
 

(e)

  

931

  

Utilities — 1.25%

 
 

11,400

  American Electric Power,
Convertible, 6.125%,
 

(e)

  

617

  
 

13,100

  NextEra Energy, Inc.,
Equity Units, 4.872%
 

(e)

  

672

  
 

7,714

  

Sempra Energy, Convertible, 6%

 

(e)

  

926

  
 

13,358

  Southern Company,
Equity Units, 6.75%
 

(e)

  

720

  
   

2,935

  
  Total Preferred Stock
(Total cost of $8,736)
    

9,320

  

COMMON STOCK — .40% (d)(f)

 
 

53,919

  Clear Channel Outdoor
Holdings, Inc. (c)
 

 

  

154

  
 

7,693

  

iHeartMedia, Inc., (c)

    

130

  
 

2,672

  

NextEra Energy, Inc.,

    

647

  
   

931

  
  Total Common Stock
(Total cost of $985)
    

931

  

WARRANTS — .10% (d)(f)

 
 

14,928

  iHeartMedia, Inc.,
warrants, (c)
      

235

  
  Total Warrants
(Total cost of $264)
      

235

  

The accompanying notes are an integral part of these financial statements.
18



The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2019 — Continued (Dollar Amounts in Thousands)

Principal
Amount/Units
   Moody's
Rating
(Unaudited)
 Value
(Note 1)
 

SHORT-TERM INVESTMENTS — .93% (d)(f)

 

U. S. Government Agency Debt — .93%

 

$

2,188

  Federal Home Loan Banks,
Discount Note, 1.00%,
Due 01/02/20
 

P-1

 

$

2,188

  
  Total Short-Term Investments
(Total cost of $2,188)
    

2,188

  
  TOTAL INVESTMENTS —
137.83
(Total cost of $311,843)
    

322,639

  
  CASH AND OTHER ASSETS
LESS LIABILITIES — (37.83)% (d)
    

(88,554

)

 
  

NET ASSETS — 100.00%

   

$

234,085

  

(a)  Denotes income is not being accrued.

(b)  Denotes issuer is in bankruptcy proceedings.

(c)  Non-income producing.

(d)  Percentages indicated are based on total net assets to common shareholders of $234,085.

(e)  Not rated.

(f)  All of the Fund's investments and other assets are pledged as collateral in accordance with a credit agreement with The Bank of Nova Scotia.

(g)  Securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers in transactions exempt from registration. Unless otherwise noted, 144A Securities are deemed to be liquid. See Note 1 of the Note to Schedule of Investments for valuation policy. Total market value of Rule 144A securities amounted to $187,246 as of December 31, 2019.

(h)  Perpetual security with no stated maturity date.

(i)  Level 3 in fair value hierarchy. See Note 1.

(j)  Security cannot be offered for public resale without first being registered under the Securities Act of 1933 (restricted security). Total market value of restricted securities (excluding Rule 144A securities) amounted to $5,018 or 2.14% of total net assets as of December 31, 2019.

(k)  Pay-In-Kind

(EUR) Euro

(GBP) British Pound

The accompanying notes are an integral part of these financial statements.
19



The New America High Income Fund, Inc.

Statement of Assets and Liabilities
December 31, 2019

(Dollars in thousands, except shares and per share amounts)

Assets:

 
INVESTMENTS IN SECURITIES, at value (Identified
cost of $311,843 see Schedule of Investments
and Note 1)
 

$

322,639

  
CASH  

1,028

  

RECEIVABLES:

 
Investment securities sold  

368

  
Interest and dividends  

4,727

  
PREPAID EXPENSES  

95

  
UNREALIZED GAIN ON CURRENCY AND
FORWARD CURRENCY EXCHANGE
CONTRACTS (Notes 1 and 7)
  

18

  

Total assets

 

$

328,875

  

Liabilities:

 

CREDIT AGREEMENT (Note 4)

 

$

91,000

  

PAYABLES:

 
Investment securities purchased  

1,956

  
Dividend on common stock  

1,344

  
Interest on loan (Note 4)  

7

  
ACCRUED EXPENSES (Note 3)  

231

  
UNREALIZED LOSS ON CURRENCY AND
FORWARD CURRENCY EXCHANGE CONTRACTS
(Notes 1 and 7)
  

252

  

Total liabilities

 

$

94,790

  

Net Assets

 

$

234,085

  

Represented By:

 

COMMON STOCK:

 
$0.01 par value, 40,000,000 shares authorized,
23,368,918 shares issued and outstanding
 

$

234

  

CAPITAL IN EXCESS OF PAR VALUE

  

239,609

  
DISTRIBUTABLE EARNINGS  

(5,758

)

 
Net Assets Applicable To Common Stock
(Equivalent to $10.02 per share, based on
23,368,918 shares outstanding)
 

$

234,085

  

Statement of Operations
For the Year Ended
December 31, 2019
(Dollars in thousands)

Investment Income: (Note 1) 

Interest income

 

$

19,661

  
Dividend income  

415

  
Other income  

12

  

Total investment income

 

$

20,088

  

Expenses:

 

Cost of leverage:

 

Interest expense (Note 4)

 

$

2,867

  
Loan fees (Note 4)  

14

  

Total cost of leverage

 

$

2,881

  

Professional services:

 

Investment Advisor (Note 3)

 

$

1,106

  
Custodian and transfer agent  

240

  
Legal  

240

  
Audit  

59

  

Total professional services

 

$

1,645

  

Administrative:

 
General administrative (Note 6) 

$

513

  
Directors  

273

  
Insurance  

135

  
Shareholder communications  

37

  
Shareholder meeting  

28

  
NYSE  

25

  

Miscellaneous

  

3

  

Total administrative

 

$

1,014

  

Total expenses

 

$

5,540

  

Net investment income

 

$

14,548

  

Realized and Unrealized Gain (Loss) on Investment Activities:

 

Realized loss on investments and currencies, net

 

$

(3,571

)

 
Change in net unrealized appreciation on
investments and other financial instruments
 

$

30,638

  

Net gain on investments

 

$

27,067

  
Net increase in net assets resulting
from operations
 

$

41,615

  

The accompanying notes are an integral part of these financial statements.
20



The New America High Income Fund, Inc.

Statements of Changes in Net Assets (Dollars in thousands, except shares and per share amounts)

 For the
Year Ended
December 31,
2019
 For the
Year Ended
December 31,
2018
 

From Operations:

 

Net investment income

 

$

14,548

  

$

15,427

  
Realized loss on investments and currencies, net  

(3,571

)

  

(2,155

)

 
Change in net unrealized appreciation (depreciation) on investments and other
financial instruments
  

30,638

   

(27,358

)

 

Net increase (decrease) in net assets resulting from operations

 

$

41,615

  

$

(14,086

)

 

Distributions to Common Stockholders:

 

Distributable earnings ($.66 and $.70 per share in 2019 and 2018, respectively)

 

$

(15,423

)

 

$

(16,265

)

 

Total net increase (decrease) in net assets

 

$

26,192

  

$

(30,351

)

 

Net Assets Applicable to Common Stock:

 

Beginning of period

 

$

207,893

  

$

238,244

  

End of period

 

$

234,085

  

$

207,893

  

The accompanying notes are an integral part of these financial statements.
21



The New America High Income Fund, Inc.

Financial Highlights
Selected Per Share Data and Ratios
For Each Share of Common Stock Outstanding Throughout the Period

  

For the Years Ended December 31,

 

 

2019

 

2018

 

2017

 

2016

 

2015

 

NET ASSET VALUE:

 

Beginning of period

 

$

8.90

  

$

10.19

  

$

9.89

  

$

8.84

  

$

10.09

  
NET INVESTMENT INCOME  

.62

   

.66

   

.71

   

.75

   

.76

  
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND OTHER FINANCIAL
INSTRUMENTS
  

1.16

   

(1.25

)

  

.30

   

1.06

   

(1.20

)

 
TOTAL FROM INVESTMENT OPERATIONS  

1.78

   

(.59

)

  

1.01

   

1.81

   

(.44

)

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS:

 
From net investment income  

(.66

)

  

(.70

)

  

(.71

)

  

(.76

)

  

(.81

)

 
TOTAL DISTRIBUTIONS  

(.66

)

  

(.70

)

  

(.71

)

  

(.76

)

  

(.81

)

 

NET ASSET VALUE:

 

End of period

 

$

10.02

  

$

8.90

  

$

10.19

  

$

9.89

  

$

8.84

  

PER SHARE MARKET VALUE:

 

End of period

 

$

9.13

  

$

7.56

  

$

9.40

  

$

9.26

  

$

7.66

  
TOTAL INVESTMENT RETURN†  

30.09

%

  

(12.70

)%

  

9.19

%

  

31.68

%

  

(5.68

)%

 

  †  Total investment return is calculated assuming a purchase of $1,000 of common stock at the current market value on the first day and a sale at the current market value on the last day of each year reported. Dividends and distributions are assumed for purposes of this calculation to be reinvested at prices obtained under the dividend reinvestment plan. This calculation does not reflect brokerage commissions.

The accompanying notes are an integral part of these financial statements.
22



The New America High Income Fund, Inc.

Financial Highlights
Selected Per Share Data and Ratios
For Each Share of Common Stock Outstanding Throughout the Period — Continued

  

For the Years Ended December 31,

 

 

2019

 

2018

 

2017

 

2016

 

2015

 

NET ASSETS, END OF PERIOD, APPLICABLE TO COMMON STOCK (a)

 

$

234,085

  

$

207,893

  

$

238,244

  

$

231,092

  

$

206,523

  

EXPENSE RATIOS:

 
Ratio of interest expense to average net assets  

1.26

%

  

1.16

%

  

.76

%

  

.55

%

  

.42

%

 
Ratio of leverage expenses to average net assets  

.01

%

  

.01

%

  

.01

%

  

.01

%

  

.01

%

 
Ratio of operating expenses to average net assets  

1.16

%

  

1.18

%

  

1.14

%

  

1.26

%

  

1.20

%

 
RATIO OF TOTAL EXPENSES TO AVERAGE NET ASSETS  

2.43

%

  

2.35

%

  

1.91

%

  

1.82

%

  

1.63

%

 
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS  

6.38

%

  

6.77

%

  

6.92

%

  

7.90

%

  

7.65

%

 
PORTFOLIO TURNOVER RATE  

65.64

%

  

71.56

%

  

70.11

%

  

77.10

%

  

71.73

%

 

  (a)  Dollars in thousands.

The accompanying notes are an integral part of these financial statements.
23



The New America High Income Fund, Inc.

Information Regarding
Senior Securities

  

As of December 31,

 

 

2019

 

2018

 

2017

 

2016

 

2015

 

TOTAL AMOUNT OUTSTANDING:

 

Credit Agreement

 

$

91,000,000

  

$

91,000,000

  

$

91,000,000

  

$

91,000,000

  

$

80,000,000

  
ASSET COVERAGE: 

Per $1,000 borrowed under Credit Agreement (1)

 

$

3,572

  

$

3,285

  

$

3,618

  

$

3,539

  

$

3,582

  
Credit Agreement Asset Coverage (2)  

357

%

  

328

%

  

362

%

  

354

%

  

358

%

 

  (1)  Calculated by subtracting the Fund's total liabilities excluding the amount borrowed under the credit facility, from the Fund's total assets and dividing such amount by the amount borrowed under the credit facility, (per $1,000 of amount borrowed).

  (2)  Calculated by subtracting the Fund's total liabilities excluding the amount borrowed under the credit facility, from the Fund's total assets and dividing such amount by the amount borrowed under the credit facility.

The accompanying notes are an integral part of these financial statements.
24



The New America High Income Fund, Inc.

Statement of Cash Flows (Dollars in thousands)

  For the
Year
Ended
December 31,
2019
 

Cash Flows From Operating Activities:

 

Purchases of portfolio securities

 

$

(210,711

)

 
Sales of portfolio securities  

206,782

  
Net purchases, sales and maturities of short-term securities  

5,033

  
Interest and dividends received  

21,343

  
Operating expenses paid  

(5,660

)

 

Net cash provided by operating activities

 

$

16,787

  

Cash Flows From Financing Activities:

 

Common stock dividends

 

$

(16,083

)

 

Net cash used by financing activities

 

$

(16,083

)

 

Net Increase in Cash

 

$

704

  

Cash at Beginning of Period

  

324

  

Cash at End of Period

 

$

1,028

  
Reconciliation of Net Increase in Net Assets Resulting from Operations
to Net Cash Provided by Operating Activities:
 

Purchases of portfolio securities

 

$

(210,711

)

 
Sales of portfolio securities  

206,782

  
Net purchases, sales and maturities of short-term securities  

5,033

  
Net increase in net assets resulting from operations  

41,615

  
Amortization of interest  

779

  
Net realized loss on investments and currencies  

3,571

  
Change in net unrealized appreciation on investments and other financial instruments  

(30,638

)

 
Decrease in interest and dividend receivable  

476

  
Decrease in accrued expenses and other payables  

(120

)

 

Net cash provided by operating activities

 

$

16,787

  

The accompanying notes are an integral part of these financial statements.
25



The New America High Income Fund, Inc.

Notes to Financial Statements
December 31, 2019

(1) Significant Accounting and Other Policies

The New America High Income Fund, Inc. (the Fund) was organized as a corporation in the state of Maryland on November 19, 1987 and is registered with the Securities and Exchange Commission as a diversified, closed-end investment company under the Investment Company Act of 1940. The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 "Financial Services Investment Companies". The Fund commenced operations on February 26, 1988. The investment objective of the Fund is to provide high current income while seeking to preserve stockholders' capital through investment in a professionally managed, diversified portfolio of "high yield" fixed-income securities.

The Fund invests primarily in fixed maturity corporate debt securities that are rated less than investment grade. Risk of loss upon default by the issuer is significantly greater with respect to such securities compared to investment grade securities because these securities are generally unsecured and are often subordinated to other creditors of the issuer and because these issuers usually have high levels of indebtedness and are more sensitive to adverse economic conditions, such as a recession, than are investment grade issuers. In some cases, the collection of principal and timely receipt of interest is dependent upon the issuer attaining improved operating results, selling assets or obtaining additional financing.

The Fund may focus its investments in certain industries, subjecting it to greater risk than a Fund that is more diversified. See the schedule of investments for information on individual securities as well as industry diversification and credit quality ratings.

The Fund's financial statements have been prepared in conformity with accounting principles generally accepted in the United States for investment companies that require the management of the Fund to, among other things, make estimates and assumptions that affect the

reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

The following is a summary of significant accounting policies consistently followed by the Fund, which are in conformity with those generally accepted in the investment company industry.

(a)  Valuation of Investments—Except as otherwise described below, the Fund's investments are valued based on evaluated bid prices provided by an independent pricing service. Independent pricing services provide prices based primarily on quotations from dealers and brokers, market transactions, data accessed from quotations services, offering sheets obtained from dealers and various relationships among similar securities. Investments whose primary market is on an exchange are valued at the last sale price on the day of valuation. Short-term investments with original maturities of 60 days or less are stated at amortized cost, which approximates the fair value of such investments. Following procedures approved by the Board of Directors, investments for which market prices are not yet provided by an independent pricing service (primarily newly issued fixed-income corporate bonds and notes) shall be valued at the most recently quoted bid price provided by a principal market maker for the security. Other investments for which market quotations are not readily available are valued in good faith at fair value using methods approved by the Board of Directors. Fair value measurement is further discussed in section (f) of this footnote.

(b)  Foreign Currency—Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U. S. dollar amounts on the respective dates of such transactions.


26



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2019

The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transaction, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

(c)  Foreign Currency Forward Exchange Contracts—The Fund may enter into foreign currency forward exchange contracts to hedge against foreign currency exchange rate risks on its non-U.S. dollar denominated investment securities. When entering into a forward currency contract, the Fund agrees to receive or deliver a fixed quantity of foreign currency for an agreed upon price on an agreed future date. The Fund's net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the statement of assets and liabilities. Realized and unrealized gains and losses are included in the statement of operations. These instruments involve market risk, credit risk or both kinds of risks, in excess of the amount recognized in the statement of assets and liabilities. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movement in currency and securities values and interest rates.

(d)  Securities Transactions and Net Investment Income—Securities transactions are recorded on trade

date. Realized gains or losses on sales of securities are calculated on the identified cost basis. Interest income is accrued on a daily basis. Discount on short-term investments is amortized to investment income. Premiums or discounts on corporate debt securities are amortized based on the interest method for financial reporting purposes. All income on original issue discount and step interest bonds is accrued based on the effective interest method. The Fund does not amortize market premiums or discounts for tax purposes. Dividend payments received in the form of additional securities are recorded on the ex-dividend date in an amount equal to the value of the security on such date.

(e)  Federal Income Taxes—It is the Fund's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders each year. Accordingly, no federal income tax provision is required.

(f)  Fair Value Measurement—The Fund applies ASC 820 "Fair Value Measurements and Disclosures". This standard establishes the definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements.

The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

Level 2—Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.


27



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2019

Level 3—Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

A description of the valuation techniques applied to the Fund's major asset and liability categories is as follows.

Debt securities (corporate, U.S. Treasury, convertible & bank debt). The fair value of debt securities is provided by independent pricing services using quotations from dealers and brokers, market transactions, data from quotations services, offering sheets and various relationships between securities. While most corporate bonds are categorized in level 2 of the fair value hierarchy, there may be instances where less observable inputs necessitate a level 3 categorization.

Equity securities (preferred and common stock). Equity securities for which the primary market is on an exchange will be valued at the last sale price on the day of valuation and are categorized in level 1 of the fair value hierarchy. Other equity securities traded in inactive markets or valued by independent pricing services using methods similar to debt securities are categorized in level 2. The fair value of equity securities in which observable inputs are unavailable are categorized in level 3.

Short-term investments. Short-term investments are valued using amortized cost, which approximates fair value. To the extent the inputs are observable and timely the values would be categorized in level 2 of the fair value hierarchy.

Forwards are valued at the unrealized gain or loss on the contract as measured by the difference between the forward exchange rates at the date of entry into the contract and the forward rates at the reporting date. Forwards are categorized in level 2 of the fair value hierarchy.

The following is a summary of the inputs used as of December 31, 2019 in valuing the Fund's investments:

  

Level 1

 

Level 2

 

Level 3

 

Total Value

 
  Quoted
Prices

(000's)
 Significant
Observable
Inputs
(000's)
 Significant
Unobservable
Inputs
(000's)
 

(000's)

 

Investments

 

Debt Securities*

 

$

  

$

308,582

  

$

1,383

  

$

309,965

  
United States
Agency Debt
  

   

2,188

   

   

2,188

  

Preferred Stock

 

Energy

  

   

4,051

   

   

4,051

  

Healthcare

  

1,403

   

   

   

1,403

  

Manufacturing

  

931

   

   

   

931

  

Utilities

  

2,935

   

   

   

2,935

  

Common Stock

 

Broadcasting

  

284

   

   

   

284

  

Utilities

  

647

   

   

   

647

  

Warrants

 

Broadcasting

  

   

235

   

   

235

  

Total Investments

 

$

6,200

  

$

315,056

  

$

1,383

  

$

322,639

  


28



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2019

  

Level 1

 

Level 2

 

Level 3

 

Total Value

 
  Quoted
Prices

(000's)
 Significant
Observable
Inputs
(000's)
 Significant
Unobservable
Inputs
(000's)
 

(000's)

 
Forward Currency
Exchange
Contracts
 

$

  

$

(234

)

 

$

  

$

(234

)

 

*  Debt Securities — Type of debt and industries are shown on the Schedule of Investments.

  Fair Value as
of 12/31/19
 Valuation
Techniques
 Unobservable
Input
 Input
Values
 Impact to Valuation
from an increase
to input
 
Felix Energy LLC,
8.401%, 08/09/22
  

967

  Expected
corporate action
 

New debt issuance

 

Pricing

 

Increase

 
iHeart Communications,
Inc., 8.443%, 01/30/20
  

416

  Estimated
restructure proceeds
 

Last vendor quote

 

Pricing

 

Increase

 

The Fund owned two Level 3 securities at December 31, 2019. They are identified on the Schedule of Investments with a footnote (i) and have a value of $1,383,000. The value was determined by the Valuation Committee of the Fund's investment advisor, T. Rowe Price, under procedures approved by the Board of Directors. The techniques used to arrive at this valuation take into account the occurrence of company specific or industry events, liquidity, and other market factors.

The following is a reconciliation of Fund investments using Level 3 inputs for the period:

  Securities
(000's)
 

Balance, December 31, 2018

 

$

898

  

Net purchases/(sales)

  

416

  

Change in unrealized appreciation (depreciation)

  

8

  

Realized gain

  

61

  

Balance, December 31, 2019

 

$

1,383

  

Level 1 and Level 2 assets are evaluated on a quarterly basis for changes in listings or delistings on national exchanges.

Transfers between levels are recognized at the value at the end of the reporting period. During the twelve months

ended December 31, 2019, the Fund recognized no transfers between Levels 1 and 2.

(2) Tax Matters and Distributions

At December 31, 2019, the total cost of securities (including temporary cash investments) for federal income tax purposes was approximately $313,438,000. Aggregate gross unrealized gain on securities in which there was an excess of value over tax cost was approximately $12,692,000. Aggregate gross unrealized loss on securities in which there was an excess of tax cost over value was approximately $3,491,000. Net unrealized gain on investments for tax purposes at December 31, 2019 was approximately $9,201,000.

At December 31, 2019, the Fund had approximate capital loss carryforwards available to offset future capital gains, if any, to the extent provided by regulations:

Carryover Available

 

Character

 

Expiration Date

 

$

4,828,000

  

Short-term

 

None

 
 9,101,000  

Long-term

 

None

 

$

13,929,000

        


29



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2019

As a result of the passage of the Regulated Investment Company Modernization Act of 2010 (the "Act"), losses incurred in the 2011 fiscal year and beyond retain their character as short-term or long-term, have no expiration date and are utilized before the capital losses incurred prior to the enactment of the Act. At December 31, 2019, the Fund had total non-expiring capital loss carryforwards of $13,929,000.

It is the policy of the Fund to reduce future distributions of realized gains to shareholders to the extent of the unexpired capital loss carryforwards.

The tax character of distributions paid to common shareholders in 2019 and 2018 of approximately $15,419,000 and $16,430,000, respectively, was from ordinary income.

As of December 31, 2019, the components of distributable earnings on a tax basis were approximately:

Unrealized Gain on Investments

 

$

9,201,000

  

Capital Loss Carryforwards

  

(13,929,000

)

 

Other Accumulated Losses

  

(1,113,000

)

 
Undistributed Net Investment Income  

83,000

  
  

$

(5,758,000

)

 

The difference between components of distributable earnings on a tax basis and amounts in accordance with generally accepted accounting principals ("GAAP") are primarily due to market discount and premium adjustments, wash sales, and the recognition of unrealized gain on currency forward contracts. GAAP also requires components related to permanent differences of net assets to be classified differently for financial reporting purposes than for tax reporting purposes. These differences have no net effect on the net asset value of the Fund. For the year ended December 31, 2019, the Fund recorded a reclassification entry for $1,000 from capital in excess of par value to net accumulated realized losses to reflect the effect of a permanent difference between book and tax accounting. This reclassification has no impact on the net assets of the Fund.

As of December 31, 2019, the Fund had $1,113,000 of post-October losses which are deferred until fiscal

year 2020 for tax purposes. The other accumulated losses incurred after October 31, and within the taxable year are deemed to arise on the first day of the Fund's next taxable year. Distributions on common stock are declared based upon annual projections of the Fund's investment company taxable income. The Fund records all dividends and distributions payable to shareholders on the ex-dividend date and declares and distributes income dividends monthly.

The Fund is required to amortize market discounts and premiums for financial reporting purposes. This results in additional interest income in some years and decreased interest income in others for financial reporting purposes only. The Fund does not amortize market discounts or premiums for tax purposes. Therefore, the additional or decreased interest income for financial reporting purposes does not result in additional or decreased common stock dividend income.

The Fund recognizes the tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained assuming examination by tax authorities. Management has analyzed the Fund's tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2016-2018, or expected to be taken in the Fund's 2019 tax returns. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

(3) Investment Advisory Agreement

T. Rowe Price Associates, Inc. (T. Rowe Price), the Fund's Investment Advisor, earned approximately $1,106,000 in management fees during the twelve months ended December 31, 2019. Management fees paid by the Fund to T. Rowe Price were calculated at 0.50% on the first $50,000,000 of the Fund's average weekly net assets, 0.40% on the next $50 million and 0.30% on average weekly net assets in excess of


30



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2019

$100 million. T. Rowe Price's fee is calculated based on assets attributable to the Fund's common stock and senior securities. At December 31, 2019, the fee payable to T. Rowe Price was approximately $96,000, which was included in accrued expenses on the accompanying statement of assets and liabilities.

(4) Bank Credit Agreement

The Fund has a credit agreement with The Bank of Nova Scotia pursuant to which the Fund may borrow up to an aggregate amount of $100,000,000. On December 31, 2019 the total amount outstanding on the loan was $91,000,000. The term of the facility has been extended to October 2020. Amounts borrowed under the credit facility bear interest at an adjustable rate based on a margin above LIBOR. The rate paid on these borrowings is approximately 2.65% and will be in effect until January 31, 2020 at which time the rate will be reset. For the twelve months ended December 31, 2019 the weighted average rate on the loan was approximately 3.15% and the maximum amount borrowed during the period was $91,000,000.

The Fund pays a commitment fee to The Bank of Nova Scotia at a rate of .15% per annum for any unused portion of borrowings not to exceed $100,000,000. For the twelve months ended December 31, 2019 the Fund paid approximately $14,000 for this commitment.

The Fund has granted to The Bank of Nova Scotia a security interest in the investments and other assets of the Fund in accordance with the Credit Agreement.

(5) Purchases and Sales of Securities

Purchases and proceeds of sales or maturities of long-term securities during the year ended December 31, 2019 were approximately:

Cost of purchases

 

$

208,027,000

  

Proceeds of sales or maturities

 

$

205,552,000

  

(6) Related Party Transactions

The Fund paid approximately $215,000 during the year ended December 31, 2019 to the president of the Fund for her services as an officer and employee of the Fund.

(7) Derivative Contracts (Currency Amounts in Thousands)

Forward Currency Exchange Contracts—As of December 31, 2019 the Fund had forward currency exchange contracts outstanding as follows:

Counterparty Settlement
Date
 Receive
(Deliver)
 

Asset

 Liability Unrealized
Appreciation
(Depreciation)
 

UBS

 

1/24/20

 

CAD

8

  

$

6

  

$

6

  

$

  

JP Morgan

 

1/24/20

 

CAD

6

   

5

   

5

   

  

UBS

 

1/24/20

 

CAD

6

   

5

   

5

   

  

Canadian Imperial Bank

 

1/24/20

 

CAD

102

   

79

   

77

   

2

  

State Street Bank

 

1/24/20

 

CAD

(122

)

  

93

   

94

   

(1

)

 

Canadian Imperial Bank

 

1/31/20

 

GBP

108

   

144

   

140

   

4

  

Citibank

 

1/31/20

 

GBP

108

   

144

   

140

   

4

  

UBS

 

1/31/20

 

GBP

179

   

236

   

229

   

7

  

Citibank

 

1/31/20

 

GBP

(2,422

)

  

2,996

   

3,211

   

(215

)

 

State Street Bank

 

2/21/20

 

EUR

101

   

113

   

112

   

1

  

Citibank

 

2/21/20

 

EUR

(467

)

  

517

   

526

   

(9

)

 

UBS

 

2/21/20

 

EUR

(108

)

  

120

   

121

   

(1

)

 

UBS

 

2/21/20

 

EUR

(789

)

  

878

   

888

   

(10

)

 

Citibank

 

2/21/20

 

EUR

(117

)

  

129

   

131

   

(2

)

 

Citibank

 

2/21/20

 

EUR

(855

)

  

948

   

962

   

(14

)

 

Net unrealized loss on open forward currency exchange contracts

 

$

(234

)

 


31



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2019

Fair Value of Derivative Instruments—The fair value of derivative instruments as of December 31, 2019 was as follows:

 Asset Derivatives
December 31, 2019
 

 Statement of Assets
and Liabilities Location
 Fair
Value
 
Forward currency contracts
 
 
 Unrealized gain
on forward currency
exchange contracts
 

$

18

  

 
 
 Unrealized loss
on forward currency
exchange contracts
  

(252

)

 

The effect of derivative instruments that are included on the Statement of Operations for the twelve months ended December 31, 2019 was as follows:

Amount of Realized Gain on Derivatives

 
  Realized gain (loss) on
investments, net
 

Forward currency contracts

 

$

456

  

Change in Unrealized Depreciation on Derivatives

 
  Change in
net unrealized
appreciation
(depreciation) on
investments and other
financial instruments
 

Forward currency contracts

 

$

(358

)

 

(8) New Accounting Pronouncement Adopted

In March 2017, FASB issued Accounting Standards Update ("ASU") No. 2018-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The Fund has adopted and applied ASU 2017-08,

and as of January 1, 2019, the amortized cost of investments was reduced by $512,000 and unrealized appreciation was increased by $512,000. The adoption of ASU 2017-08 had no impact on beginning net assets or the current results from operations.

(9) Recent Accounting Pronouncement Not Yet Adopted

In August 2018, the Financial Accounting Standards Board issued Accounting Standard Update ("ASU") 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. The changes affect all companies that are required to include fair value measurement disclosures. In general, the amendments in ASU 2018-13 are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. ASU 2018-13 will require the need to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements and the changes in unrealized gains and losses for recurring Level 3 fair value measurements. ASU 2018-13 will also require that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. An entity is permitted to early adopt the removed or modified disclosures upon the issuance of ASU 2018-13 and may delay adoption of the additional disclosures, which are required for public companies only, until their effective date. Management is currently evaluating the impact these changes will have on the Fund's financial statements and disclosures.

(9) Subsequent Events

The Fund has evaluated the need for additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no adjustments were required to the financial statements as of December 31, 2019.


32



The New America High Income Fund, Inc.

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of
The New America High Income Fund, Inc.
Boston, Massachusetts

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of The New America High Income Fund, Inc. (the "Fund"), including the schedule of investments, as of December 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the Fund's auditor since 2005.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

  TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania
February 14, 2020


33



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information
(Unaudited)

Availability of Portfolio Holdings

The Fund provides a complete schedule of its portfolio holdings quarterly. The lists of holdings as of the end of the second and fourth quarters appear in the Fund's semi-annual and annual reports to shareholders, respectively. The schedules of portfolio holdings as of the end of the first and third quarters are filed with the Securities and Exchange Commission (the "SEC") on Form N-Q (the "Forms") within 60 days of the end of the first and third quarters. Shareholders can look up the Forms on the SEC's web site at www.sec.gov. The Forms may also be reviewed and copied at the SEC's public reference room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC's web site and their public reference room. In addition, the Forms may be reviewed on the Fund's web site at www.newamerica-hyb.com.

Compliance with CFTC Regulation of Transactions in Commodity Interests

The Fund does not currently intend to engage in transactions in commodity interests such as futures contracts, options on futures contracts, and swaps. However, the Fund may in the future enter into interest rate transactions, such as swaps, caps, collars and floors for the purpose or with the effect of hedging its portfolio and/or its payment obligations with respect to senior securities. In addition, the Fund has reserved the right, subject to the approval of the Board of Directors, to purchase and sell financial futures contracts and options on such futures contracts for the purpose of hedging its portfolio securities (or portfolio securities which it expects to acquire) against anticipated changes in prevailing interest rates. To the extent it engages in transactions in commodity interests, the Fund expects their use to be limited such that the Fund may claim the exclusion from the definition of the term "commodity pool operator" available under Regulation 4.5 of the Commodity Futures Trading Commission under the Commodity Exchange Act, and will not therefor be subject to regulation as a pool operator under the Commodity Exchange Act.

Common Stock Transactions

The Fund may purchase shares of its Common Stock in the open market when the Common Stock trades at a discount to net asset value or at other times if the Fund determines such purchases are advisable. There can be no assurance that the Fund will take such action in the event of a market discount to net asset value or that Fund purchases will reduce a discount.


34



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information
(Unaudited)

Information About the Review and Approval of the Fund's Investment Advisory Agreement

The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory or sub-advisory agreement between a registered fund and its investment adviser or sub-adviser will continue in effect from year to year only if its continuation is approved at least annually by the fund's board of directors, including a majority of the directors who are not "interested persons" of the fund within the meaning of the 1940 Act, voting in person at a meeting called for the purpose of considering such approval.

On October 31, 2019, the Board of Directors, including all of the Directors who are not "interested persons" of the Fund (the "Independent Directors"), approved the continuation of the Advisory Agreement with the Adviser. Prior to taking this action, the Directors reviewed information relating to the Fund and the Adviser that was prepared in response to specific inquiries made on behalf of the Board to assist it with its consideration of the Advisory Agreement. This information included, among other things: information about the Adviser's organization, operations, personnel and regulatory and compliance efforts; the services the Adviser provides to the Fund; the Adviser's portfolio management practices; and the performance, fees and expenses of the Fund relative to other high yield debt funds and high yield debt indices, as detailed in a comparative analysis prepared by an independent data provider. The Directors also took into account information regarding the Fund and the Adviser provided throughout the year at meetings of the Board and its committees.

Based on all of the above-mentioned information, and such other factors and conclusions as the Directors deemed relevant, including those described below (but with no single factor or conclusion being determinative, and with each Director not necessarily attributing the same weight to each factor), the Directors concluded that the continuation of the Advisory Agreement is in the interests of the Fund and its shareholders.

Nature, Extent and Quality of Services. In considering the nature, extent and quality of the services provided by the Adviser, the Directors reviewed information relating to various aspects of the Adviser's operations and personnel, including: its organizational and management structure; the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the Fund; and the portfolio management and trading practices employed in managing the Fund. In particular, the Directors considered that Mark J. Vaselkiv — longtime portfolio manager of the Fund — is no longer serving as a co-portfolio manager alongside Rodney M. Rayburn, leaving Mr. Rayburn as the sole portfolio manager of the Fund. The Directors also considered Mr. Rayburn's background, noting that he has nearly two decades of investment experience. The Directors further noted that Mr. Rayburn has been an employee of the Adviser since 2014, holding positions as a high yield credit analyst and as a portfolio manager (beginning in 2015). In addition, the Directors considered that Mr. Rayburn, prior to joining the Adviser, had also worked at Vãrde Partners, where he was a managing director and analyst focusing on loans, bonds and reorganized equity securities.

In the course of their deliberations, the Directors also evaluated, among other things: (a) the nature, extent and quality of services rendered by the Adviser in prior years; (b) the Adviser's financial condition and its ability to devote the resources necessary to provide the services required under the Advisory Agreement; and (c) the Adviser's dedication to maintaining appropriate compliance programs with respect to the Fund. In evaluating the nature, extent and quality of services rendered by the Adviser, the Directors also took into account information concerning the


35



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information
(Unaudited)

benefits of the closed-end fund structure, as well as the Fund's market prices, trading volume data, distribution rates and other matters relevant to long-term Fund shareholders.

After consideration of the foregoing, the Directors concluded that: (1) the Adviser is a large, well-capitalized organization with substantial resources and personnel; (2) the Adviser possesses the capability and resources to perform the duties required of it under the Advisory Agreement; (3) the Adviser's personnel are qualified to manage the Fund's assets in accordance with its investment objectives, strategies and policies; (4) the Adviser's disciplined, but flexible, investment approach in managing high yield investments is appropriate for the Fund; (5) the Adviser has demonstrated an appropriate awareness of the special requirements associated with the Fund's closed-end, leveraged structure; and (6) the Adviser has demonstrated its commitment to the maintenance of appropriate compliance policies and practices.

Fund Performance. The Board evaluated the Fund's performance relative to the performance of: (a) a peer group of comparable leveraged closed-end high yield debt funds identified by an independent data provider; (b) a composite designed to present the aggregate investment results for the other high yield debt account mandates managed by the Adviser; and (c) various third-party indices tracking the high yield debt market. The Board noted that, although the Fund's bank loan investments had detracted from relative performance in 2019, the Fund's annualized performance was: (i) in the first quintile of its peer group for the year-to-date since August 31, 2019, and for the one-year period ended August 31, 2019; and (ii) in the second quintile of its performance universe for the three-, five- and ten-year periods ended August 31, 2019.

The Directors also took note of the conditions in the high yield debt and bank loan markets over recent periods, the Fund's security selection within the high yield debt and bank loan markets, including among different credit qualities, the Adviser's responsiveness to the Board's emphasis on maintaining dividend stability, and the limitations imposed on portfolio management by the asset coverage requirements for the Fund's credit facility.

On the basis of the foregoing, among other considerations associated with the Fund's performance, the Directors concluded that the Fund's performance has been satisfactory, given the investment/risk profile the Fund has sought to maintain and conditions in the high yield debt and bank loan markets.

Advisory Fee. In considering the fee payable to the Adviser under the Advisory Agreement, the Directors reviewed comparative information presented in the report of an independent data provider relating to the fees paid by a peer group of comparable leveraged closed-end high yield debt funds selected by the independent data provider. The Directors considered, based on this data, that the Fund has the lowest contractual and effective advisory fee rate amongst its peers. The Directors also considered the fees charged by the Adviser to other registered funds and institutional separate accounts with a high yield debt mandate comparable to the Fund's. The Directors concluded that, after considering the foregoing information and in light of the nature, extent and quality of the services provided by the Adviser, the Fund's advisory fee is reasonable.

Profitability. In considering the continuation of the Advisory Agreement, the Directors considered information provided by the Adviser with respect to the profitability of its investment advisory business, while acknowledging the Adviser's representations as to the difficulty of measuring the specific profitability to the Adviser of its relationship with the


36



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information
(Unaudited)

Fund. The Directors took into account that the Adviser's initial selection by the Fund's Board was conducted on an arm's-length basis through a competitive process that included other investment management firms, and that each annual continuation of the Advisory Agreement had likewise been conducted on an arm's-length basis with data from an independent data provider regarding fee rates charged to comparable funds. In this regard, it was noted that none of the Directors, officers or other Fund personnel serves as a director, officer or employee of the Adviser or any of its affiliates. On the basis of the foregoing, and taking into account the nature extent and quality of the services rendered to the Fund by the Adviser, the Directors concluded that the profits realized by the Adviser are not unreasonable.

Fallout Benefits. On the basis of information provided by the Adviser and the other factors noted above, the Board concluded that the Adviser did not appear to receive a material benefit from the Fund other than its receipt of the advisory fee pursuant to the Advisory Agreement. Accordingly, the Directors determined that any fallout or ancillary benefits were not a material factor for consideration in connection with the continuation of the Advisory Agreement.

Economies of Scale. In reviewing the Fund's advisory fee, the Directors considered the extent to which the Adviser, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale in the event the assets of the Fund increase. Taking into account the Fund's closed-end structure and its current and expected asset levels, the Directors concluded that the structure of the advisory fee, which includes breakpoints at several asset levels, will allow the Fund to continue to benefit from economies of scale in the future.


37



The New America High Income Fund, Inc.

Directors

Joseph L. Bower
Bernard J. Korman
Stuart A. McFarland
Marguerite A. Piret
Oleg M. Pohotsky
Ellen E. Terry

Officer

Ellen E. Terry – President, Treasurer, Secretary

Investment Advisor

T. Rowe Price Associates, Inc.
100 E. Pratt Street
Baltimore, Maryland 21202

Administrator

The New America High Income Fund, Inc.
33 Broad Street
Boston, MA 02109
(617) 263-6400

Custodian

State Street Corporation
One Lincoln Street
Boston, MA 02111

Independent Registered Public Accountants

Tait, Weller & Baker LLP
Two Liberty Place
Philadelphia, PA 19102

Transfer Agent

American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
(800) 937-5449
Web site: www.astfinancial.com

Listed: NYSE
Symbol: HYB
Web site: www.newamerica-hyb.com


38



The New America High Income Fund, Inc.

Information About the Fund's Directors and Officers — February 15, 2019

Independent Directors

Name,
Address1, and
Date of Birth
 Term of Office2
and Length of
Time Served
 Principal Occupation(s) During
Past 5 Years (and Other Relevant
Experience, Attributes and Skills)3
 Other Directorships
Held by Director
 
Joseph L. Bower
Date of Birth:
9/21/38
 Director
since 1988
 

Harvard Business School Professor from 1963-2014 (Donald K. David Professor Emeritus since July 2014 Donald K. David Professor of Business Administration from 1986-2007; Baker Foundation Professor from 2007-2014); Senior Associate Dean, Chair of the Doctoral Programs, Chair of the General Management Area, Chair of the General Manager and Corporate Leader Programs; Consultant on leadership, strategy, and organizational development.

 

Director of Anika Therapeutics since 1992; Brown Shoe 1982-2012; and Loews Corporation (a conglomerate) since 2002. Life Trustee of New England Conservatory of Music.

 
Bernard J. Korman
Date of Birth: 10/13/31
 Director
since 1987
 

Director of Omega Healthcare Investors, Inc. (real estate investment trust) from 1993-2019, and Chairman from 2004-2017. Chairman of the Board of Directors of Philadelphia Health Care Trust (non-profit corporation supporting healthcare delivery, education and research) from 1995-2010; Director of Medical Nutrition USA, INC (develops and distributes nutritional products) from 2004-2010;

   
Stuart A. McFarland
Date of Birth:
4/05/47
 Director
since 2013
and
Lead Director
since December 1, 2017;
 

Managing Partner, Federal City Capital Advisors, LLC since 1997; Chairman, Federal City Bancorp from 2004-2007; Director, Brandywine Funds from 2001-2013; President and CEO, Pedestal Inc. (internet enabled mortgage securities exchange) from 1999-2003; EVP and General Manager, GE Capital Mortgage Services from 1990-1996; President and CEO, GE Capital Asset Management Corporation from 1990-1996; President and CEO, Skyline Financial Services Corp. from 1988-1990 President and CEO, National Permanent Federal Savings Bank from 1986-1988. Executive Vice President – Operations and Chief Financial Officer with Federal National Mortgage Association (Fannie Mae) from 1980-1985; and President and Director, Ticor Mortgage Insurance Company from 1972-1980.

 

Director, New Senior Investment Group (real estate investment trust) since 2014; Director, Brookfield Funds (9 funds) since 2008; Director, Drive Shack (golf course management and entertainment company) since 2002 (operated as Newcastle Investment Corp., a real estate investment trust, prior to 2017)

 
Marguerite A. Piret
Date of Birth: 5/10/48
 Director
since 2004
 

Chief Financial Officer, American Ag Energy, Inc. (controlled environment agriculture) since 2016. President and Chief Executive Officer of Newbury Piret Company (an investment bank) from 1981-2019; Member, Board of Governors, Investment Company Institute from 1996-2004.

 

Trustee of Pioneer Funds Complex since 1980 (46 funds).

 


39



The New America High Income Fund, Inc.

Information About the Fund's Directors and Officers — February 15, 2019 — Continued

Name,
Address1, and
Date of Birth
 Term of Office2
and Length of
Time Served
 Principal Occupation(s) During
Past 5 Years (and Other Relevant
Experience, Attributes and Skills)3
 Other Directorships
Held by Director
 
Oleg M. Pohotsky
Date of Birth: 3/28/47
 Director
since 2013
 

Consultant and Managing Partner, Right Bank Partners (corporate governance and strategy consultancy) since 2002; SVP and Director of Mergers and Acquisitions, First Albany Corp. from 1991-2002; General Partner, Strategic Capital Associates from 1989-1991.

 

Director, Avangardco Investments Public Limited (agricultural production) since 2011; Advisor, Board of Advisors, Kaufman & Co. LLC (investment banking) since 2007; Trustee since 2000 and Chairman since 2012 of Tekla Healthcare Investors, Tekla Life Sciences Investors, Tekla Healthcare Opportunities Fund (since 2014) and Tekla World Healthcare Fund (since 2015).

 

Interested Directors and Officers

Name,
Address1, and
Date of Birth
 Term of Office2
and Length of
Time Served
 Principal Occupation(s) During
Past 5 Years (and Other Relevant
Experience, Attributes and Skills)3
 Other Directorships
Held by Director
 
Ellen E. Terry4 Date of Birth: 4/9/59 Director
Since 2014
 

President of the New America High Income Fund, Inc. since April 2013; Treasurer of the Fund since 1991; and Chief Compliance Officer of the Fund since 2004. She served as Vice President of the Fund from 1992 to April 2013.

 

 

 

  1  The address for each Director is c/o The New America High Income Fund, Inc., 33 Broad Street, Boston, MA 02109.

  2  Each Director serves as such until the next annual meeting of the Fund's stockholders and until the Director's successor shall have been duly elected and qualified.

  3  The information reported includes the principal occupation during the last five years for each Director and other information relating to the professional experiences, attributes and skills relevant to each Director's qualifications to serve as a Director.

  4  Ms. Terry is an interested person of the Fund on the basis of her positions with the Fund.


40



The New America High Income Fund, Inc.

PRIVACY POLICY

The New America High Income Fund Inc., (the "Fund") receives nonpublic personal information about individuals from the following sources:

• Information the Fund receives from an individual who chooses to register Fund shares in the individual's own name (a "registered holder") as provided on applications, forms, and otherwise;

• Information generated by a registered holder's Fund transaction and other account activity; and

• Information provided by individuals who make inquiries to the Fund via letter, E-mail or phone call ("correspondents")

The Fund does not disclose any nonpublic personal information about registered holders, former registered holders or correspondents to anyone, except as required by law or allowed under certain limited federal privacy law exceptions that relate, for example, to the maintenance and servicing of the Fund relationship. The Fund limits access to nonpublic personal information about these individuals to those Fund employees and third-party service providers who need the information in connection with Fund-related activities the Fund has asked them to perform. The Fund also maintains physical, electronic, and procedural safeguards that comply with federal standards to protect the security of registered holders' and correspondents' nonpublic personal information.


41



American Stock Transfer & Trust Company
59 Maiden Lane
New York, NY 10038

The New
America
High Income
Fund, Inc.

Annual

Report

December 31, 2019



 

ITEM 2. CODE OF ETHICS.

 

As of December 31, 2003, the Fund has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer, Principal Financial Officer/Chief Financial Officer, Principal Accounting Officer, Vice President, Treasurer and Manager of Accounting and Compliance.  During the period covered by this report, there were no amendments to or waivers granted under the Code of Ethics.  The code of ethics is attached as an exhibit to this report and posted on the Fund’s web site at www.newamerica-hyb.com.

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

 

The Fund’s Audit Committee is comprised solely of Directors who are “independent” as such term has been defined by the Securities and Exchange Commission in regulations implementing Section 407 of the Sarbanes-Oxley Act.  The Board of Directors (a) has determined that each member of the Audit Committee is “financially literate” and has “accounting or related financial management experience” as these terms are used in the corporate governance standards of the New York Stock Exchange and (b) believes that each has substantial experience relating to the review of financial statements and the operations of audit committees.  In addition, the Board of Directors has determined that based upon their review of her experience and education, Ms. Piret qualifies as an “audit committee financial expert”, as that term has been defined by the instructions to this Item.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 

Tait, Weller & Baker LLP (“Tait, Weller”) served as independent public accountants for the Fund for the years ended December 31, 2019 and December 31, 2018. The services provided by Tait, Weller consisted of the examination of the Fund’s annual financial statements, assistance and consultation in connection with SEC filings, and review of tax and certain compliance matters on behalf of the Fund.

 

Audit Fees. For fiscal 2019, the aggregate fees billed by Tait, Weller in connection with the audit of the Fund’s 2019 financial statements and review of the 2019 semi-annual financial statements totaled $51,850. Those fees for fiscal 2018 were $51,600.

 

Audit-Related Fees.  In fiscal 2019 and fiscal 2018, Tait, Weller did not bill the Fund for any assurance and related services that are reasonably related to the performance of the audit and review of the Fund’s financial statements.

 

Tax Fees. For fiscal 2019, the aggregate fees billed by Tait, Weller for its professional services related to preparation of the Fund’s federal and state tax returns, review of excise distributions, and testing of quarterly asset diversification totaled $8,150. For fiscal 2018 those fees were $7,900.

 

All Other Fees. Tait Weller did not bill for any products or services except as noted above, in fiscal 2019 or 2018.

 

Tait, Weller did not provide any audit or non-audit services to T. Rowe Price Group, Inc. (“Price Group”), the parent company of the Fund’s investment adviser, or any of Price Group’s subsidiaries in 2019 or 2018.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

 

The Board of Directors has an Audit Committee, which consists of all the independent Directors. The Audit Committee is presently comprised of Mr. Bernard J. Korman, Mr. Stuart Mc Farland, Ms. Marguerite Piret, Mr. Oleg Pohotsky and Professor Joseph L. Bower.

 

ITEM 6.

 

This schedule is included as part of the Report to Shareholders filed under Item 1 of this Form.

 


 

ITEM. 7

 

T. ROWE PRICE ASSOCIATES, INC. AND ITS INVESTMENT ADVISER AFFILIATES

 

PROXY VOTING POLICIES AND PROCEDURES

 

RESPONSIBILITY TO VOTE PROXIES

 

T. Rowe Price Associates, Inc., and its affiliated investment advisers (collectively, “T. Rowe Price”) recognize and adhere to the principle that one of the privileges of owning stock in a company is the right to vote in the election of the company’s directors and on matters affecting certain important aspects of the company’s structure and operations that are submitted to shareholder vote. The U.S.-registered investment companies which T. Rowe Price sponsors and serves as investment adviser (the “Price Funds”) as well as other investment advisory clients have delegated to T. Rowe Price certain proxy voting powers. As an investment adviser, T. Rowe Price has a fiduciary responsibility to such clients when exercising its voting authority with respect to securities held in their portfolios. T. Rowe Price reserves the right to decline to vote proxies in accordance with client-specific voting guidelines.

 

T. Rowe Price has adopted these Proxy Voting Policies and Procedures (“Policies and Procedures”) for the purpose of establishing formal policies and procedures for performing and documenting its fiduciary duty with regard to the voting of client proxies. This document is reviewed at least annually and updated as necessary.

 

Fiduciary Considerations. It is the policy of T. Rowe Price that decisions with respect to proxy issues will be made in light of the anticipated impact of the issue on the desirability of investing in the portfolio company from the viewpoint of the particular advisory client or Price Fund. Proxies are voted solely in the interests of the client, Price Fund shareholders or, where employee benefit plan assets are involved, in the interests of plan participants and beneficiaries. Our intent has always been to vote proxies, where possible to do so, in a manner consistent with our fiduciary obligations and responsibilities.

 

One of the primary factors T. Rowe Price considers when determining the desirability of investing in a particular company is the quality and depth of its management. We recognize that a company’s management is entrusted with the day-to-day operations of the company, as well as its long-term direction and strategic planning, subject to the oversight of the company’s board of directors. Accordingly, our proxy voting guidelines are not intended to substitute our judgment for management’s with respect to the company’s day-to-day operations. Rather, our proxy voting guidelines are designed to promote accountability of a company’s management and board of directors to its shareholders; to align the interests of management with those of shareholders; and to encourage companies to adopt best practices in terms of their corporate governance and disclosure. In addition to our proxy voting guidelines, we rely on a company’s public filings, its board recommendations, its track record, country-specific best practices codes, our research

 

TRP 2020 Proxy Voting Policies and Procedures.doc

Updated: February 2020

 


 

providers and — most importantly — our investment professionals’ views in making voting decisions.

 

T. Rowe Price seeks to vote all of its clients’ proxies.  In certain circumstances, T. Rowe Price may determine that refraining from voting a proxy is in a client’s best interest, such as when the cost to the client of voting outweigh the expected benefit to the client.  For example, the practicalities and costs involved with international investing may make it impossible at times, and at other times disadvantageous, to vote proxies in every instance.

 

ADMINISTRATION OF POLICIES AND PROCEDURES

 

Environmental, Social and Governance Committee. T. Rowe Price’s Environmental, Social and Governance Committee (“ESG Committee”) is responsible for establishing positions with respect to corporate governance and other proxy issues. Certain delegated members of the ESG Committee also review questions and respond to inquiries from clients and mutual fund shareholders pertaining to proxy issues. While the ESG Committee sets voting guidelines and serves as a resource for T. Rowe Price portfolio management, it does not have proxy voting authority for any Price Fund or advisory client. Rather, voting authority and responsibility is held by the Chairperson of the Price Fund’s Investment Advisory Committee or the advisory client’s portfolio manager.  The ESG Committee is also responsible for the oversight of third-party proxy services firms that T. Rowe Price engages to facilitate the proxy voting process.

 

Proxy Voting Team. The Proxy Voting team is responsible for administering the proxy voting process as set forth in the Policies and Procedures.

 

Corporate Governance Team. Our Corporate Governance team is responsible for reviewing the proxy agendas for all upcoming meetings and making company-specific recommendations to our global industry analysts and portfolio managers with regard to the voting decisions in their portfolios.

 

HOW PROXIES ARE REVIEWED, PROCESSED AND VOTED

 

In order to facilitate the proxy voting process, T. Rowe Price has retained Institutional Shareholder Services (“ISS”) as an expert in the proxy voting and corporate governance area. ISS specializes in providing a variety of fiduciary-level proxy advisory and voting services. These services include custom vote recommendations, research, vote execution, and reporting. In order to reflect T. Rowe Price’s issue-by-issue voting guidelines as approved each year by the ESG Committee, ISS maintains and implements a custom voting policy for the Price Funds and other advisory client accounts.

 

Meeting Notification

 

T. Rowe Price utilizes ISS’ voting agent services to notify us of upcoming shareholder

 


 

meetings for portfolio companies held in client accounts and to transmit votes to the various custodian banks of our clients. ISS tracks and reconciles T. Rowe Price holdings against incoming proxy ballots. If ballots do not arrive on time, ISS procures them from the appropriate custodian or proxy distribution agent. Meeting and record date information is updated daily and transmitted to T. Rowe Price through ProxyExchange, an ISS application.

 

Vote Determination

 

Each day, ISS delivers into T. Rowe Price’s customized ProxyExchange environment a comprehensive summary of upcoming meetings, proxy proposals, publications discussing key proxy voting issues, and custom vote recommendations to assist us with proxy research and processing. The final authority and responsibility for proxy voting decisions remains with T. Rowe Price. Decisions with respect to proxy matters are made primarily in light of the anticipated impact of the issue on the desirability of investing in the company from the perspective of our clients.

 

Portfolio managers execute their responsibility to vote proxies in different ways. Some have decided to vote their proxies generally in line with the guidelines as set by the ESG Committee. Others review the customized vote recommendations and approve them before the votes are cast. In all cases, portfolio managers receive current reports summarizing all proxy votes in their client accounts. Portfolio managers who vote their proxies inconsistent with T. Rowe Price guidelines are required to document the rationale for their votes. The Proxy Voting team is responsible for maintaining this documentation and assuring that it adequately reflects the basis for any vote which is contrary to our proxy voting guidelines.

 

T. Rowe Price Voting Policies

 

Specific proxy voting guidelines have been adopted by the ESG Committee for all regularly occurring categories of management and shareholder proposals. A detailed set of proxy voting guidelines is available on the T. Rowe Price website, www.troweprice.com. The following is a summary of our guidelines on the most significant proxy voting topics:

 

Election of Directors — For most companies, T. Rowe Price generally expects boards to maintain a majority of independent directors. T. Rowe Price may vote against outside directors who do not meet our criteria relating to their independence, particularly when they serve on key board committees, such as compensation and nominating committees, for which we believe that all directors should be independent.  In certain markets where majority-independent boards are uncommon, we expect companies to adhere to the minimum independence standard established by regional corporate governance codes. At a minimum, however, we believe boards in all regions should include a blend of executive and non-executive members, and we are likely to vote against senior executives at companies with insufficient representation by independent directors. We also vote against directors who are unable to dedicate sufficient time to their board duties due to their commitments to other boards. We may vote against certain directors who have served on company boards where we believe there has been a gross failure in governance or oversight. In certain markets, a lack of diversity on the board may cause us to oppose the members of the board’s Nominating Committee. Additionally, we may vote against compensation committee members

 


 

who approve excessive executive compensation or severance arrangements. We support efforts to elect all board members annually because boards with staggered terms lessen directors’ accountability to shareholders and act as deterrents to takeover proposals. To strengthen boards’ accountability, T. Rowe Price supports proposals calling for a majority vote threshold for the election of directors and we may withhold votes from an entire board if they fail to implement shareholder proposals that receive majority support.

 

Anti-Takeover, Capital Structure and Corporate Governance Issues — T. Rowe Price generally opposes anti-takeover measures since they adversely impact shareholder rights and limit the ability of shareholders to act on potential value-enhancing transactions. Such anti-takeover mechanisms include classified boards, supermajority voting requirements, dual share classes, and poison pills. When voting on capital structure proposals, T. Rowe Price will consider the dilutive impact to shareholders and the effect on shareholder rights.

 

Executive Compensation Issues — T. Rowe Price’s goal is to assure that a company’s equity-based compensation plan is aligned with shareholders’ long-term interests. We evaluate plans on a case-by-case basis, using a number of factors, including dilution to shareholders, problematic plan features, burn rate, and the equity compensation mix. Plans that are constructed to effectively and fairly align executives’ and shareholders’ incentives generally earn our approval. Conversely, we oppose compensation packages that provide what we view as excessive awards to few senior executives or contain the potential for excessive dilution relative to the company’s peers. We also may oppose equity plans at any company where we deem the overall compensation practices to be problematic. We generally oppose efforts to reprice options in the event of a decline in value of the underlying stock unless such plans appropriately balance shareholder and employee interests. For companies with particularly egregious pay practices such as excessive severance packages, executives with outsized pledged/hedged stock positions, executive perks, and bonuses that are not adequately linked to performance, we may vote against members of the board’s Compensation Committee. We analyze management proposals requesting ratification of a company’s executive compensation practices (“Say-on-Pay” proposals) on a case-by-case basis, using a screen that assesses the long-term linkage between executive compensation and company performance as well as the presence of objectionable structural features in compensation plans. Finally, we may oppose Compensation Committee members or even the entire board if we have cast votes against a company’s “Say-on-Pay” vote in consecutive years.

 

Mergers and Acquisitions — T. Rowe Price considers takeover offers, mergers, and other extraordinary corporate transactions on a case-by-case basis to determine if they are beneficial to shareholders’ current and future earnings stream and to ensure that our Price Funds and advisory clients are receiving fair consideration for their securities. We oppose a high proportion of proposals for the ratification of executive severance packages (“Say on Golden Parachute” proposals) in conjunction with merger transactions if we conclude these arrangements reduce the alignment of executives’ incentives with shareholders’ interests.

 

Corporate Social Responsibility Issues — Vote recommendations for corporate responsibility issues are generated by the Corporate Governance team in consultation with our

 


 

Responsible Investment team. T. Rowe Price takes into consideration a company’s existing level of disclosure on matters of a social, environmental, or corporate responsibility nature. If the proposal addresses an issue with substantial investment implications for the company’s business or operations, and those issues have not been adequately addressed by management, T. Rowe Price generally supports calls for additional disclosure.

 

Global Portfolio Companies — The ESG Committee has developed custom international proxy voting guidelines based on ISS’ general global policies, regional codes of corporate governance, and our own views as investors in these markets.  ISS applies a two-tier approach to determining and applying global proxy voting policies. The first tier establishes baseline policy guidelines for the most fundamental issues, which span the corporate governance spectrum without regard to a company’s domicile. The second tier takes into account various idiosyncrasies of different countries, making allowances for standard market practices, as long as they do not violate the fundamental goals of good corporate governance. The goal is to enhance shareholder value through effective use of the shareholder franchise, recognizing that application of policies developed for U.S. corporate governance issues are not appropriate for all markets.

 

Fixed Income and Passively Managed Strategies — Proxy voting for our fixed income and indexed portfolios is administered by the Proxy Voting team using T. Rowe Price’s guidelines as set by the ESG Committee. Indexed strategies generally vote in line with the T. Rowe Price guidelines. Fixed income strategies generally follow the proxy vote determinations on security holdings held by our equity accounts unless the matter is specific to a particular fixed income security such as consents, restructurings, or reorganization proposals.

 

Shareblocking — Shareblocking is the practice in certain foreign countries of “freezing” shares for trading purposes in order to vote proxies relating to those shares. In markets where shareblocking applies, the custodian or sub-custodian automatically freezes shares prior to a shareholder meeting once a proxy has been voted. T. Rowe Price’s policy is generally to refrain from voting shares in shareblocking countries unless the matter has compelling economic consequences that outweigh the loss of liquidity in the blocked shares.

 

Securities on Loan — The Price Funds and our institutional clients may participate in securities lending programs to generate income for their portfolios. Generally, the voting rights pass with the securities on loan; however, lending agreements give the lender the right to terminate the loan and pull back the loaned shares provided sufficient notice is given to the custodian bank in advance of the applicable deadline. T. Rowe Price’s policy is generally not to vote securities on loan unless we determine there is a material voting event that could affect the value of the loaned securities. In this event, we have the discretion to pull back the loaned securities in order to cast a vote at an upcoming shareholder meeting. A monthly monitoring process is in place to review securities on loan and how they may affect proxy voting.

 


 

Monitoring and Resolving Conflicts of Interest

 

The ESG Committee is also responsible for monitoring and resolving potential material conflicts between the interests of T. Rowe Price and those of its clients with respect to proxy voting. We have adopted safeguards to ensure that our proxy voting is not influenced by interests other than those of our fund shareholders and other investment advisory clients. While membership on the ESG Committee is diverse, it does not include individuals whose primary duties relate to client relationship management, marketing, or sales. Since T. Rowe Price’s voting guidelines are predetermined by the ESG Committee, application of the guidelines by portfolio managers to vote client proxies should in most instances adequately address any potential conflicts of interest. However, consistent with the terms of the Policies and Procedures, which allow portfolio managers to vote proxies opposite our general voting guidelines, the ESG Committee regularly reviews all such proxy votes that are inconsistent with the proxy voting guidelines to determine whether the portfolio manager’s voting rationale appears reasonable. The ESG Committee also assesses whether any business or other material relationships between T. Rowe Price and a portfolio company (unrelated to the ownership of the portfolio company’s securities) could have influenced an inconsistent vote on that company’s proxy. Issues raising potential conflicts of interest are referred to designated members of the ESG Committee for immediate resolution prior to the time T. Rowe Price casts its vote.

 

With respect to personal conflicts of interest, T. Rowe Price’s Code of Ethics and Conduct requires all employees to avoid placing themselves in a “compromising position” in which their interests may conflict with those of our clients and restrict their ability to engage in certain outside business activities. Portfolio managers or ESG Committee members with a personal conflict of interest regarding a particular proxy vote must recuse themselves and not participate in the voting decisions with respect to that proxy.

 

Specific Conflict of Interest Situations - Voting of T. Rowe Price Group, Inc. common stock (sym: TROW) by certain T. Rowe Price Index Funds will be done in all instances in accordance with T. Rowe Price voting guidelines and votes inconsistent with the guidelines will not be permitted. In the event that there is no previously established guideline for a specific voting issue appearing on the T. Rowe Price Group proxy, the Price Funds will abstain on that voting item.  In addition, T. Rowe Price has voting authority for proxies of the holdings of certain Price Funds that invest in other Price Funds. In cases where the underlying fund of an investing Price Fund, including a fund-of-funds, holds a proxy vote, T. Rowe Price will mirror vote the fund shares held by the upper-tier fund in the same proportion as the votes cast by the shareholders of the underlying funds (other than the T. Rowe Price Reserve Investment Fund).

 

Limitations on Voting Proxies of Banks

 

T. Rowe Price has obtained relief from the U.S. Federal Reserve Board (the “FRB Relief”) which permits, subject to a number of conditions, T. Rowe Price to acquire in the aggregate on behalf of its clients, 10% or more of the total voting stock of a bank, bank holding company, savings and loan holding company or savings association (each a “Bank”), not to exceed a 15% aggregate beneficial ownership maximum in such Bank.  One such condition affects the manner

 


 

in which T. Rowe Price will vote its clients’ shares of a Bank in excess of 10% of the Bank’s total voting stock (“Excess Shares”).  The FRB Relief requires that T. Rowe Price use its best efforts to vote the Excess Shares in the same proportion as all other shares voted, a practice generally referred to as “mirror voting,” or in the event that such efforts to mirror vote are unsuccessful, Excess Shares will not be voted.  With respect to a shareholder vote for a Bank of which T. Rowe Price has aggregate beneficial ownership of greater than 10% on behalf of its clients, T. Rowe Price will determine which of its clients’ shares are Excess Shares on a pro rata basis across all of its clients’ portfolios for which T. Rowe Price has the power to vote proxies.

 

REPORTING, RECORD RETENTION AND OVERSIGHT

 

The ESG Committee, and certain personnel under the direction of the ESG Committee, perform the following oversight and assurance functions, among others, over T. Rowe Price’s proxy voting: (1) periodically samples proxy votes to ensure that they were cast in compliance with T. Rowe Price’s proxy voting guidelines; (2) reviews, no less frequently than annually, the adequacy of the Policies and Procedures to make sure that they have been implemented effectively, including whether they continue to be reasonably designed to ensure that proxies are voted in the best interests of our clients; (3) performs due diligence on whether a retained proxy advisory firm has the capacity and competency to adequately analyze proxy issues, including the adequacy and quality of the proxy advisory firm’s staffing and personnel and its policies; and (4) oversees any retained proxy advisory firms and their procedures regarding their capabilities to (i) produce proxy research that is based on current and accurate information and (ii) identify and address any conflicts of interest and any other considerations that we believe would be appropriate in considering the nature and quality of the services provided by the proxy advisory firm.

 

T. Rowe Price will furnish Vote Summary Reports, upon request, to its institutional clients that have delegated proxy voting authority. The report specifies the portfolio companies, meeting dates, proxy proposals, and votes which have been cast for the client during the period and the position taken with respect to each issue. Reports normally cover quarterly or annual periods and are provided to such clients upon request.

 

T. Rowe Price retains proxy solicitation materials, memoranda regarding votes cast in opposition to the position of a company’s management, and documentation on shares voted differently. In addition, any document which is material to a proxy voting decision such as the T. Rowe Price proxy voting guidelines, ESG Committee meeting materials, and other internal research relating to voting decisions are maintained in accordance with applicable requirements.

 


 

Item 8. Portfolio Managers of Closed-End Management Investment Companies

 

Item 8(a)(1)

 

The New America High Income Fund (the “Fund”) is managed by an Investment Advisory Committee chaired by Rodney Rayburn.  Mr. Rayburn has day-to-day responsibility for managing the Fund and works with the Committee in developing and executing the Fund’s investment program. Mr. Rayburn was co-chairman and co-portfolio manager of the Fund from January 14, 2019-December 31, 2019. Effective January 1, 2020, Mr. Rayburn became the Fund’s sole portfolio manager and sole Chairman of the Fund’s Investment Advisory Committee. His biography follows:

 

Rodney Rayburn

 

Rodney Rayburn is a vice president of T. Rowe Price Group, Inc. and T. Rowe Price Associates, Inc., and a portfolio manager in the Fixed Income Division. He is the lead portfolio manager of the Credit Opportunities Fund and is president and chairman of its Investment Advisory Committee. Prior to joining T. Rowe Price in 2014, Rodney spent five years as a managing director at Värde Partners in Minneapolis, where he was actively involved in performing and nonperforming loans, bonds, and reorganized equities across a variety of industries. Prior to that, he was a senior investment analyst at Stark Investments in Milwaukee. Rodney earned a B.S. in economics from the Georgia Institute of Technology and an M.B.A. in finance and economics from the University of Chicago Booth School of Business. He also has earned the Chartered Financial Analyst designation.

 


 

Item 8(a)(2)

 

Other Accounts:

 

Rodney Rayburn:

 

 

 

Number of
Accounts

 

TOTAL Assets

 

 

 

 

 

 

 

·   registered investment companies:

 

3

 

$

10,153.2 million

 

·   other pooled investment vehicles:

 

2

 

$

1,793.4 million

 

·   other accounts:

 

0

 

$

0

 

 

As of 12/31/2019.

 

None of the accounts listed above have performance-based fees.

 

Conflicts of Interest

 

Portfolio managers at T. Rowe Price and its affiliates may manage multiple accounts. These accounts may include, among others, mutual funds, separate accounts (assets managed on behalf of institutions such as pension funds, colleges and universities, and foundations), offshore funds, and common trust funds. Portfolio managers make investment decisions for each portfolio based on the investment objectives, policies, practices, and other relevant investment considerations that the managers believe are applicable to that portfolio. Consequently, portfolio managers may purchase (or sell) securities for one portfolio and not another portfolio. T. Rowe Price and its affiliates have adopted brokerage and trade allocation policies and procedures that they believe are reasonably designed to address any potential conflicts associated with managing multiple accounts for multiple clients.

 

The T. Rowe Price Funds may, from time to time, own shares of Morningstar, Inc. Morningstar is a provider of investment research to individual and institutional investors, and publishes ratings on mutual funds, including the T. Rowe Price Funds. T. Rowe Price manages the Morningstar retirement plan and acts as subadvisor to two mutual funds offered by Morningstar. In addition, T. Rowe Price and its affiliates pay Morningstar for a variety of products and services. In addition, Morningstar may provide investment consulting and investment management services to clients of T. Rowe Price or its affiliates.

 

Since the T. Rowe Price Funds and other accounts have different investment objectives or strategies, potential conflicts of interest may arise in executing investment decisions or trades among client accounts. For example, if T. Rowe Price purchases a security for one account and sells the same security short for another account, such a trading pattern could disadvantage either the account that is long or short. It is possible that short sale activity could adversely affect the market value of long positions in one or more T. Rowe Price Funds and other accounts (and vice versa) and create potential trading conflicts, such as when long and short positions are being executed at the same time. To mitigate these potential conflicts of interest, T. Rowe Price has implemented policies and procedures requiring trading and investment decisions to be made in accordance with T. Rowe Price’s fiduciary duties to all accounts, including the T. Rowe Price Funds. Pursuant to these policies, portfolio managers are generally prohibited from managing multiple strategies where they hold the same security long in one strategy and short in another, except in certain circumstances, including where an investment oversight committee has specifically reviewed and approved the holdings or strategy. Additionally, T. Rowe Price has implemented policies and procedures that it believes are reasonably designed to ensure the fair and equitable allocation of trades, both long and short, to minimize the impact of trading activity across client accounts. T. Rowe Price monitors short sales to determine whether its procedures are working as intended and that such short sale activity is not materially impacting our trade executions and long positions for other clients.

 


 

Item 8(a)(3)

 

Compensation:

 

Portfolio manager compensation consists primarily of a base salary, a cash bonus, and an equity incentive that usually comes in the form of restricted stock grants. Compensation is variable and is determined based on the following factors. Investment performance over 1-, 3-, 5-, and 10-year periods is the most important input. The weightings for these time periods are generally balanced and are applied consistently across similar strategies. T. Rowe Price (and T. Rowe Price Hong Kong, T. Rowe Price Singapore, T. Rowe Price Japan, and T. Rowe Price International, as appropriate) evaluates performance in absolute, relative, and risk-adjusted terms. Relative performance and risk-adjusted performance are typically determined with reference to the broad-based index (e.g., S&P 500 Index) and the Lipper average or index (e.g., Large-Cap Growth Index) set forth in the total returns table in the fund’s prospectus, although other benchmarks may be used as well. Investment results are also measured against comparably managed funds of competitive investment management firms. The selection of comparable funds is approved by the applicable investment steering committee and is the same as the selection presented to the directors of the T. Rowe Price Funds in their regular review of fund performance. Performance is primarily measured on a pretax basis, although tax efficiency is considered.

 

Compensation is viewed with a long-term time horizon. The more consistent a manager’s performance over time, the higher the compensation opportunity. The increase or decrease in a fund’s assets due to the purchase or sale of fund shares is not considered a material factor. In reviewing relative performance for fixed income funds, a fund’s expense ratio is usually taken into account. Contribution to T. Rowe Price’s overall investment process is an important consideration as well. Leveraging ideas and investment insights across the global investment platform; working effectively with and mentoring others; and other contributions to our clients, the firm, or our culture are important components of T. Rowe Price’s long-term success and are generally taken into consideration.

 

All employees of T. Rowe Price, including portfolio managers, participate in a 401(k) plan sponsored by T. Rowe Price Group. In addition, all employees are eligible to purchase T. Rowe Price common stock through an employee stock purchase plan that features a limited corporate matching contribution. Eligibility for and participation in these plans is on the same basis for all employees. Finally, all vice presidents of T. Rowe Price Group, including all portfolio managers, receive supplemental medical/hospital reimbursement benefits and are eligible to participate in a supplemental savings plan sponsored by T. Rowe Price Group.

 

This compensation structure is used when evaluating the performance of all portfolios (including the T. Rowe Price Funds) managed by the portfolio manager.

 


 

Item 8(a)(4)

 

Ownership of Securities

 

Portfolio Manager

 

Fund

 

Dollar Range of Equity
Securities
Beneficially Owned*

 

 

 

 

 

 

 

Rodney Rayburn

 

New America High Income Fund

 

None

 

 


* As of 12/31/2019.

 

Item 8(b) — Not applicable.

 


 

ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

 

Not applicable.

 

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

 

Not applicable.

 

ITEM 11. CONTROLS AND PROCEDURES.

 

(a) The Fund’s principal executive officer and principal financial officer concluded that the Fund disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) provide reasonable assurances that information required to be disclosed by the Fund on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Fund in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Fund’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure, based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this report.

 

(b) There was no change in the Fund’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Fund’s second fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

 

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

(a) If the registrant is a closed-end management investment company, provide the following dollar amounts of income and fees/compensation related to the securities lending activities of the registrant during its most recent fiscal year: (1) Gross income from securities lending activities; (2) All fees and/or compensation for each of the following securities lending activities and related services: any share of revenue generated by the securities lending program paid to the securities lending agent(s) (“revenue split”); fees paid for cash collateral management services (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split; administrative fees that are not included in the revenue split; fees for indemnification that are not included in the revenue split; rebates paid to borrowers; and any other fees relating to the securities lending program that are not included in the revenue split, including a description of those other fees; (3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and (4) Net income from securities lending activities (i.e., the dollar amount in paragraph (1) minus the dollar amount in paragraph (3)).

 

Instruction to paragraph (a).

 

If a fee for a service is included in the revenue split, state that the fee is “included in the revenue split.”

 

(b) If the registrant is a closed-end management investment company, describe the services provided to the registrant by the securities lending agent in the registrant's most recent fiscal year.

 

ITEM 13. EXHIBITS.

 

(a)(1)

 

The Code of Ethics.

 

 

 

(a)(2)

 

The certifications required by Rule 30a-2(a) under the 1940 Act.

 

 

 

(a)(3)

 

Not applicable.

 

 

 

(b)

 

The certifications required by Rule 30a-2(b) under the 1940 Act.

 


 

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.

 

 

 

The New America High Income Fund, Inc.

 

 

 

 

 

 

 

By:

 /s/ Ellen E. Terry

 

Name:

 Ellen E. Terry

 

Title:

 President

 

Date:

 March 5, 2020

 

 

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.

 

 

 

By:

/s/ Ellen E. Terry

 

Name:

  Ellen E. Terry

 

Title:

  President

 

Date:

  March 5, 2020

 

 

 

By:

/s/ Ellen E. Terry

 

Name:

  Ellen E. Terry

 

Title:

  Treasurer

 

Date:

  March 5, 2020