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New America High Income Fund (HYB)

Filed: 30 Mar 22, 4:26pm

 

 

 

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, 2021 
 
Date of reporting period:July 1, 2021 to December 31, 2021 
     

 

 

 

 

 

 

Explanatory Note

 

On March 8, 2022, the undersigned registrant filed its Certified Shareholder Report on Form N-CSR for the annual period ended December 31, 2021.  The registrant hereby amends the original Certified Shareholder Report on Form N-CSR by supplementing Item 1, “Report to Stockholders,” to file an amended and restated audit opinion letter that includes reference to the Statement of Cash Flows and to include additional investment performance information.

 

This amendment does not reflect events occurring after the filing of the original Certified Shareholder Report on Form N-CSR for the annual period ended December 31, 2021, and, other than supplementing Item 1, “Reports to Stockholders,” as stated above, does not modify or update the disclosures in the original Certified Shareholder Report on Form N-CSR in any way.

 

 

 

 

Item 1.Report to Stockholders

 

 

 

 

February 10, 2022

Dear Stockholder,

We are pleased to report to our stockholders on the results of The New America High Income Fund, Inc. (the "Fund") for the year ended December 31, 2021. The Fund's net asset value (the "NAV") per share was $9.78 as of December 31st. The market price for the Fund's shares ended the period at $9.33, representing a market price discount of approximately 4.6%. During the period, the Fund paid dividends totaling $0.6775 per share, which included a special dividend of $0.1275 per share. The dividend yield for a share of common stock purchased at the market price of $8.68 on December 31, 2020 was 7.81%. The dividend yield based upon the December 31, 2020 NAV of $9.79 was 6.92%.

As of December 31st, the Fund had outstanding borrowings of $84 million through its credit facility with the Bank of Nova Scotia (the "Facility"), unchanged from the level of borrowings on June 30th. At year-end, borrowings accounted for approximately 27% of the Fund's total assets. Amounts borrowed under the Facility bear interest at an adjustable rate based on a margin above the London Interbank Offered Rate ("LIBOR). The interest rate on the Facility at the end of the period was approximately 0.95%. The average rate on the Facility in 2021 was 0.97%, down from an average rate of 1.53% in 2020.

After a period of very low interest rates, the Federal Reserve (the "Fed") has indicated that a policy shift to higher rates is imminent. Investors are closely monitoring Fed statements about the pace and magnitude of potential increases in the Federal Funds rate and the impact of higher rates on the economy and fixed income securities. An increase in interest rates would increase the cost of the Fund's borrowings through the Facility and can be expected to result in increased bond price volatility. The Fund's investment adviser—T. Rowe Price Associates—discusses the market environment and its market outlook in detail below.

We remind our stockholders 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.

The Fund's leverage produces a higher dividend for stockholders than the same portfolio would produce without leverage. Leverage also magnifies the effects of price movements on the Fund's NAV per share. For the year ended December 31, 2021, in which the high yield bond market turned in a positive performance, 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, 2021

 
  

1 Year

 

3 Years Cumulative

 
The New America High Income Fund, Inc.
(Stock Price and Dividends)*
  

15.62

%

  

54.83

%

 
The New America High Income Fund, Inc.
(NAV and Dividends)*
  

7.46

%

  

38.73

%

 

Credit Suisse High Yield Index

  

5.50

%

  

26.86

%

 

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 stock price or NAV 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.


1


Market Review

The global high yield market returned 5.50% in 2021, according to the Credit Suisse High Yield Index (the "Index").

In March, President Biden signed the $1.9 trillion American Rescue Plan Act into law. The accelerated vaccine rollout also seemed to provide a further boost to confidence as nearly one-third of Americans had received their first dose by the end of March. Case reports and hospitalizations began to fall sharply throughout the first quarter and many states began to reopen to various degrees. As they did, hiring resumed, particularly in the hospitality and leisure industry. The economic rebound and lingering supply chain disruptions led to price pressures in some parts of the economy, but overall inflation data remained muted in the first quarter.

In the second quarter, inflation pressures began to grow. Core (excluding food and energy) consumer prices jumped by 0.9% in April, the most in nearly four decades and roughly triple consensus estimates. For the most part, however, during the second quarter, investors seemed reassured by repeated statements from Fed officials that inflationary pressures were likely "transitory" and due mostly to pandemic-related supply constraints.

Investors kept a close eye on inflationary pressures throughout the third quarter. The June inflation data showed a sharp increase of 0.9% in headline and core consumer prices, almost twice consensus estimates. The 12-month increase in the core rate of 4.5% was the fastest since 1991. A number of factors were behind the spike in inflation, including the reopening of the economy, lingering supply chain problems, particularly soaring shipping costs, and the release of pent-up demand for travel and recreation. Diminishing fiscal stimulus hopes may have contributed to the market's weakness into the end of the third and into the fourth quarter. On August 10, the U.S. Senate passed a roughly $1 trillion bipartisan infrastructure package, including about $550 billion in new spending, that aims to rebuild traditional transportation infrastructure.

The coronavirus pandemic loomed large over sentiment throughout the fourth quarter. As the quarter came to an end, however, investors seemed reassured that the omicron variant appeared to cause milder symptoms than those with other variants and also appeared to be peaking rapidly in South Africa, where it was first discovered. In late November, Federal Reserve Chair Jerome Powell told a congressional committee that he no longer thought it was appropriate to refer to inflation as "transitory" following a series of upside inflation surprises. Data were soon released showing that consumer prices rose 6.8% in the 12 months ended in November, the biggest increase since 1982.

High yield bond issuance declined in each successive quarter in 2021, however, even excluding refinancing transactions, the year's net issuance of $193 billion easily eclipsed the record of $175 billion previously set in 2013, according to J.P. Morgan. Dominated by refinancings in the first quarter of 2021, the mix of issuance shifted meaningfully throughout the year. During the fourth quarter, merger and acquisition and leveraged buyout activity represented nearly a third of all high yield issuance. The J.P. Morgan par-weighted default rate decreased to 0.27% from 6.17% in December 2020.

Strategy Review

Security selection in the health care segment aided the Fund's relative performance, partly due to Avantor, a leading provider of product and service solutions to laboratory and production companies. Consistent demand for its products supports the company's performance, and management has continued to execute on its deleveraging


2


strategy. The strength of the company's balance sheet should enable Avantor to move forward with strategic plans for vertically integrated merger and acquisition transactions.

Credit selection in the satellites segment added value, partly due to Intelsat, which operates the world's first globalized network, delivering high-quality, cost-effective video and broadband services. Our team has closely followed developments in this credit story for several years. When the company filed for bankruptcy in May 2020, we saw an excellent risk/reward opportunity in an investment in the company's secured bonds and loans, based on our fundamental view that the value of the core business is sufficient to cover the company's secured debt. A financial reorganization plan has been filed that could significantly reduce debt and pay down secured bonds and loans upon exit from bankruptcy, which we believe is imminent in early 2022.

After U.S. Treasuries experienced a sharp selloff in the first quarter, they rallied through the second and early part of the third quarter before another, more moderate selloff during the early part of the fourth quarter as the 10-year Treasury yield ended the year roughly 50 basis points higher than the start. Against this backdrop, the Fund's underweight to and security selection within the relatively more interest rate sensitive BB-rated segment of the high yield market was a top contributor to relative performance during the period.

The portfolio's investments in the Chinese building & real estate companies Shimao Group and Country Garden detracted from performance. We recognized the potential for higher default rates in the Chinese building and real estate industry and waited until after the default of China Evergrande before establishing positions in these two higher quality property developers that met China's heightened regulatory standards for property developers. During the fourth quarter, it appeared that all private sector property developers had lost the support of the government and liquidity across the sector became squeezed. We saw significant price volatility in developers that we believed were fundamentally stable and were slow to recognize our credit selection was fighting against a more powerful regulatory headwind.

Finally, given the rally in low quality and, in our view, fundamentally challenged credits that we did not own—particularly in the first half of the year—our risk-aware positioning within the CCC-rated & below segment of the high yield market was a headwind to the Fund's relative performance to the Index as low dollar bonds rallied from stressed levels.

Outlook

Fundamental conditions in the high yield market appear to be very favorable due to ample liquidity and interest coverage ratios that are at the best levels in a decade, which reinforce our benign default outlook. Leveraged loans currently compose a significant portion of primary issuance. From a technical perspective, this preference among issuers for bank borrowing creates a dearth of new high yield bond supply to meet investor demand and a supportive price backdrop for bonds in the secondary market.

After a record amount of investment-grade credits were downgraded and entered the high yield asset class in 2020, the market is in an upgrade cycle as the number of issuers to receive credit rating upgrades has exceeded downgrades for several consecutive quarters. This trend creates another supply/demand tailwind for the asset class. For context, $42 billion in high yield paper has left the high yield market in the form of rising stars in 2021 compared with just $10 billion in fallen angels.


3


Despite the broadly supportive backdrop, the high yield market faces the headwinds of historically expensive valuations and interest rate volatility. We expect the majority of total return in the year ahead to come from interest payments rather than capital appreciation. The portfolio has a higher average coupon compared with the Index and is less sensitive to interest rate changes due to our leveraged loan holdings. We believe these characteristics could continue to add value as central banks are expected to initiate rate hikes in 2022.

As always, we aim to deliver high current income while seeking to contain the volatility inherent in this 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, 2021 (Unaudited)
 As a Percent of
Total Investments*
 

Energy

  

12.18

%

 

Healthcare

  

8.84

%

 

Cable Operators

  

8.68

%

 

Services

  

8.37

%

 

Financial

  

7.70

%

 

Automotive

  

5.91

%

 

Broadcasting

  

5.86

%

 

Utilities

  

4.92

%

 

Gaming

  

4.27

%

 

Wireless Communications

  

3.73

%

 

Entertainment & Leisure

  

3.31

%

 

Satellites

  

3.14

%

 

Metals & Mining

  

3.07

%

 

Airlines

  

3.04

%

 

Information Technology

  

2.18

%

 

Building & Real Estate

  

1.86

%

 

Retail

  

1.49

%

 

Aerospace & Defense

  

1.43

%

 

Supermarkets

  

1.36

%

 

Manufacturing

  

1.21

%

 

Building Products

  

1.09

%

 

Chemicals

  

1.07

%

 

Food/Tobacco

  

1.00

%

 

Other Telecommunications

  

0.94

%

 

Restaurants

  

0.90

%

 

Container

  

0.65

%

 

Consumer Products

  

0.58

%

 

Real Estate Investment Trust Securities

  

0.49

%

 

Lodging

  

0.48

%

 

Transportation

  

0.25

%

 

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 1.36 times.

Moody's Investors Service Ratings (1)
December 31, 2021 (Unaudited)
 As a Percent of
Total Investments
 

Baa1

  

0.17

%

 

Baa2

  

0.20

%

 

Baa3

  

2.25

%

 

Total Baa

  

2.62

%

 

Ba1

  

4.03

%

 

Ba2

  

11.06

%

 

Ba3

  

16.48

%

 

Total Ba

  

31.57

%

 

B1

  

13.64

%

 

B2

  

15.89

%

 

B3

  

11.34

%

 

Total B

  

40.87

%

 

Caa1

  

11.89

%

 

Caa2

  

5.08

%

 

Caa3

  

0.18

%

 

Total Caa

  

17.15

%

 

Ca

  

0.17

%

 

Unrated

  

4.53

%

 

Equity

  

3.09

%

 

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.

Performance Overview (Unaudited)

Average Annual Total Returns

 

One Year

 

Five Years

 

Ten Years

 

Fund at NAV

  

7.46

%

  

7.83

%

  

8.93

%

 

Fund at Market Price

  

15.62

%

  

8.39

%

  

7.66

%

 

Credit Suisse High Yield Index

  

5.50

%

  

5.80

%

  

6.50

%

 

Growth of $10,000

This graph shows the change in value of a hypothetical investment of $10,00 in the Fund for the period indicated. For comparison, the same investment is shown in the Credit Suisse High Yield Index.

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.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change stock price or NAV 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.


6


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — 120.32% (d)(f)

 

Aerospace & Defense — 1.57%

 

$

325

  Bombardier, Inc., Senior Notes,
7.50%, 03/15/25 (g)
 

Caa1

 

$

331

  
 

460

  Bombardier, Inc., Senior Notes,
7.875%, 04/15/27 (g)
 

Caa1

  

475

  
 

1,830

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

Ba3

  

1,899

  
 

115

  Transdigm Holdings UK, plc,
Senior Notes,
7.50%, 03/15/27
 

B3

  

120

  
 

730

  Transdigm Holdings UK, plc,
Senior Notes,
8%, 12/15/25 (g)
 

Ba3

  

768

  
   

3,593

  

Airlines — 3.45%

 
 

265

  Air Canada, Senior Notes,
4.625%, 08/15/29 (g) (CAD)
 

Ba2

  

209

  
 

355

  American Airlines Inc.,
Senior Notes,
3.75%, 03/01/25 (g)
 

Caa1

  

332

  
 

925

  American Airlines Inc.,
Senior Notes,
5.50%, 04/20/26 (g)
 

Ba2

  

962

  
 

1,015

  American Airlines Inc.,
Senior Notes,
5.75%, 04/20/29 (g)
 

Ba2

  

1,086

  
 

1,460

  American Airlines Inc.,
Senior Notes,
11.75%, 07/15/25 (g)
 

Ba3

  

1,801

  
 

495

  Delta Airlines, Senior Notes,
4.75%, 10/20/28 (g)
 

Baa1

  

541

  
 

550

  Delta Airlines, Senior Notes,
7%, 05/01/25 (g)
 

Baa2

  

630

  
 

725

  Delta Airlines, Senior Notes,
7.375%, 01/15/26
 

Baa3

  

854

  
 

285

  Hawaiian Miles Loyalty, Ltd.,
Senior Notes,
5.75%, 01/20/26 (g)
 

Ba3

  

299

  
 

760

  Mileage Plus Holdings, LLC,
Senior Notes,
6.50%, 06/20/27 (g)
 

Baa3

  

811

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

$

355

  United Airlines Holdings, Inc.,
Senior Notes,
4.625%, 04/15/29 (g)
 

Ba1

 

$

367

  
   

7,892

  

Automotive — 8.03%

 
 

315

  Asbury Automotive Group, Inc.,
Senior Notes,
4.625%, 11/15/29 (g)
 

B1

  

321

  
 

365

  Asbury Automotive Group, Inc.,
Senior Notes,
5%, 02/15/32 (g)
 

B1

  

376

  
 

3,215

  Clarios Global LP, Senior Notes,
8.50%, 05/15/27 (g)
 

Caa1

  

3,400

  
 

76

  Clarios Global LP, Senior
Secured Notes,
6.25%, 05/15/26 (g)
 

B1

  

80

  
 

455

  Dana Inc., Senior Notes,
5.625%, 06/15/28
 

B1

  

483

  
 

335

  Dornoch Debt Merger,
Senior Notes,
6.625%, 10/15/29 (g)
 

Caa1

  

332

  
 

70

  Ford Motor Company,
Senior Notes,
7.45%, 07/16/31
 

Ba2

  

95

  
 

1,185

  Ford Motor Company,
Senior Notes,
9%, 04/22/25
 

Ba2

  

1,448

  
 

480

  Ford Motor Credit Company, LLC,
Senior Notes,
9.625%, 04/22/30
 

Ba2

  

702

  
 

1,488

  Goodyear Tire and Rubber
Company, Senior Notes,
5%, 07/15/29 (g)
 

B2

  

1,587

  
 

620

  Goodyear Tire and Rubber
Company, Senior Notes,
5.25%, 07/15/31 (g)
 

B2

  

670

  
 

305

  Jaguar land Rover Automotive Plc,
Senior Notes,
5.875%, 01/15/28 (g)
 

B1

  

311

  
 

445

  Jaguar land Rover Automotive Plc,
Senior Notes,
7.75%, 10/15/25 (g)
 

B1

  

480

  
 

535

  LCM Investments Holdings II, LLC,
Senior Notes,
4.875%, 05/01/29 (g)
 

B2

  

547

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

435

  Meritor, Inc., Senior Notes,
6.25%, 06/01/25 (g)
 

B1

 

$

453

  
 

635

  Metis Merger, LLC, Senior Notes,
6.50%, 05/15/29 (g)
 

Caa2

  

616

  
 

3,500

  Rivian Holdings LLC,
Senior Notes,
6.625%, 10/15/26,
Acquisition Date 10/8/21,
cost 3,431 (g)(i)
 

(e)

  

3,649

  
 

915

  Tenneco Inc., Senior Notes,
5%, 07/15/26
 

Caa1

  

883

  
 

960

  Tenneco Inc., Senior Notes,
5.125%, 04/15/29 (g)
 

Ba3

  

938

  
 

285

  Tenneco Inc., Senior Notes,
5.375%, 12/15/24
 

Caa1

  

282

  
 

645

  Tenneco Inc., Senior Notes,
7.875%, 01/15/29 (g)
 

Ba3

  

698

  
   

18,351

  

Broadcasting — 7.95%

 
 

365

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

B1

  

376

  
 

540

  Clear Channel Outdoor Holdings,
Inc., Senior Notes,
7.50%, 06/01/29 (g)
 

Caa2

  

575

  
 

1,080

  Clear Channel Outdoor Holdings,
Inc., Senior Notes,
7.75%, 04/15/28 (g)
 

Caa2

  

1,158

  
 

85

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

Caa1

  

43

  
 

765

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

Ca

  

216

  
 

680

  Gray Escrow II, Inc., Senior Notes,
5.375%, 11/15/31 (g)
 

B3

  

699

  
 

5,169

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

Caa1

  

5,453

  
 

1,570

  Midas Opco Holdings LLC,
Senior Notes,
5.625%, 08/15/29 (g)
 

B3

  

1,605

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

$

310

  Lions Gate Capital Holdings, LLC,
Senior Notes,
5.50%, 04/15/29 (g)
 

B3

 

$

314

  
 

355

  Nexstar Broadcasting, Inc.,
Senior Notes,
4.75%, 11/01/28 (g)
 

B2

  

362

  
 

170

  Nielsen Finance LLC,
Senior Notes,
4.50%, 07/15/29 (g)
 

B2

  

167

  
 

220

  Nielsen Finance LLC,
Senior Notes,
4.75%, 07/15/31 (g)
 

B2

  

218

  
 

450

  Nielsen Finance LLC,
Senior Notes,
5.625%, 10/01/28 (g)
 

B2

  

464

  
 

145

  Outfront Media Capital, LLC,
Senior Notes,
4.25%, 01/15/29 (g)
 

B2

  

144

  
 

480

  Sirius XM Radio, Inc.,
Senior Notes,
3.875%, 09/01/31 (g)
 

Ba3

  

470

  
 

1,285

  Sirius XM Radio, Inc.,
Senior Notes,
4%, 07/15/28 (g)
 

Ba3

  

1,291

  
 

620

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

Ba3

  

642

  
 

425

  Sirius XM Radio, Inc.,
Senior Notes,
4.125%, 07/01/30 (g)
 

Ba3

  

426

  
 

1,130

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

Caa1

  

1,220

  
 

585

  Townsquare Media, Inc.,
Senior Notes,
6.875%, 02/01/26 (g)
 

B2

  

622

  
 

780

  Univision Communications, Inc.,
Senior Notes,
4.50%, 05/01/29 (g)
 

B1

  

788

  
 

580

  Univision Communications, Inc.,
Senior Notes,
6.625%, 06/01/27 (g)
 

B2

  

623

  
 

280

  Univision Communications, Inc.,
Senior Notes,
9.50%, 05/01/25 (g)
 

B2

  

300

  
   

18,176

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

Building & Real Estate — 2.52%

 

$

455

  Brookfield Residential Properties,
Senior Notes,
5%, 06/15/29 (g)
 

B2

 

$

456

  
 

990

  Country Garden Holdings
Company, Ltd., Senior Notes,
5.125%, 01/14/27
 

(e)

  

911

  
 

200

  Country Garden Holdings
Company, Ltd., Senior Notes,
5.625%, 01/14/30
 

(e)

  

185

  
 

755

  Cushman & Wakefield U.S.
Borrower, LLC, Senior Notes,
6.75%, 05/15/28 (g)
 

Ba3

  

810

  
 

645

  Howard Hughes Corporation,
Senior Notes,
4.125%, 02/01/29 (g)
 

Ba3

  

653

  
 

345

  Howard Hughes Corporation,
Senior Notes,
4.375%, 02/01/31 (g)
 

Ba3

  

349

  
 

570

  Howard Hughes Corporation,
Senior Notes,
5.375%, 08/01/28 (g)
 

Ba3

  

603

  
 

150

  Realogy Group LLC, Senior Notes,
7.625%, 06/15/25 (g)
 

Ba3

  

159

  
 

400

  Realogy Group LLC, Senior Notes,
9.375%, 04/01/27 (g)
 

B2

  

434

  
 

350

  Shimao Group Holdings, Ltd.,
Senior Notes,
5.20%, 01/16/27
 

(e)

  

211

  
 

915

  Shimao Group Holdings, Ltd.,
Senior Notes,
5.60%, 07/15/26
 

(e)

  

576

  
 

225

  Taylor Morrison Communities, Inc.,
Senior Notes,
5.125%, 08/01/30 (g)
 

Ba3

  

247

  
 

160

  Weekley Homes LLC,
Senior Notes,
4.875%, 09/15/28 (g)
 

Ba3

  

165

  
   

5,759

  

Building Products — 1.48%

 
 

120

  CP Atlas Buyer, Inc., Senior Notes,
7%, 12/01/28 (g)
 

Caa2

  

119

  
 

355

  Graphic Packaging International,
LLC, Senior Notes,
3.75%, 02/01/30 (g)
 

Ba2

  

359

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

$

355

  Mercer International, Inc.,
Senior Notes,
5.125%, 02/01/29
 

Ba3

 

$

362

  
 

80

  Mercer International, Inc.,
Senior Notes,
5.50%, 01/15/26
 

Ba3

  

81

  
 

320

  New Enterprise Stone and Lime
Company, Inc., Senior Notes,
5.25%, 07/15/28 (g)
 

B2

  

325

  
 

480

  PGT Innovations, Inc.,
Senior Notes,
4.375%, 10/01/29 (g)
 

B2

  

482

  
 

395

  Specialty Building Products
Holdings, LLC, Senior Note,
6.375%, 09/30/26 (g)
 

B2

  

413

  
 

450

  SRS Distribution, Inc.,
Senior Notes,
6%, 12/01/29 (g)
 

Caa2

  

452

  
 

120

  Summit Materials LLC,
Senior Notes,
5.25%, 01/15/29 (g)
 

B1

  

125

  
 

640

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

B1

  

664

  
   

3,382

  

Cable Operators — 11.78%

 
 

1,285

  Altice Financing S.A.,
Senior Notes,
5%, 01/15/28 (g)
 

B2

  

1,246

  
 

795

  Altice Financing S.A.,
Senior Notes,
5.75%, 08/15/29 (g)
 

B2

  

783

  
 

1,270

  Altice France S.A.,
Senior Notes,
5.125%, 07/15/29 (g)
 

B2

  

1,237

  
 

795

  Altice France S.A.,
Senior Notes,
5.50%, 10/15/29 (g)
 

B2

  

780

  
 

2,340

  Altice France S.A.,
Senior Notes,
6%, 02/15/28 (g)
 

Caa1

  

2,235

  
 

475

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

B2

  

495

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

405

  CCO Holdings, LLC, Senior Notes,
4.25%, 01/15/34 (g)
 

B1

 

$

398

  
 

1,090

  CCO Holdings, LLC, Senior Notes,
4.50%, 06/01/33 (g)
 

B1

  

1,110

  
 

845

  CCO Holdings, LLC, Senior Notes,
4.50%, 05/01/32
 

B1

  

869

  
 

1,070

  CCO Holdings, LLC, Senior Notes,
4.50%, 08/15/30 (g)
 

B1

  

1,097

  
 

2,260

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

B1

  

2,350

  
 

1,658

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

B1

  

1,716

  
 

680

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

B1

  

731

  
 

1,410

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

Ba3

  

1,512

  
 

895

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

B3

  

958

  
 

465

  Direct TV Financing, LLC,
Senior Notes,
5.875%, 08/15/27 (g)
 

Ba3

  

475

  
 

425

  Dish DBS Corporation,
Senior Notes,
5.125%, 06/01/29
 

B3

  

387

  
 

950

  Dish DBS Corporation,
Senior Notes,
5.25%, 12/01/26 (g)
 

Ba3

  

964

  
 

950

  Dish DBS Corporation,
Senior Notes,
5.75%, 12/01/28 (g)
 

Ba3

  

957

  
 

450

  Dish DBS Corporation,
Senior Notes,
7.375%, 07/01/28
 

B3

  

457

  
 

550

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

B3

  

580

  
 

202

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

B1

  

213

  
 

2,625

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

Ba1

  

3,271

  
 

570

  Radiate Holdco LLC, Senior Notes,
6.50%, 09/15/28 (g)
 

Caa1

  

570

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

$

1,225

  VMed O2 UK Financing I, plc,
Senior Notes,
4.75%, 07/15/31 (g)
 

Ba3

 

$

1,251

  
 

270

  VTR Finance B.V., Senior Notes,
6.375%, 07/15/28 (g)
 

B1

  

281

  
   

26,923

  

Chemicals — 1.45%

 
 

221

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

B1

  

234

  
 

460

  CVR Partners, L.P., Senior Notes,
6.125%, 06/15/28 (g)
 

B2

  

482

  
 

630

  GPD Companies, Inc,.
Senior Notes,
10.125%, 04/01/26 (g)
 

B3

  

669

  
 

480

  Methanex Corporation,
Senior Notes,
5.125%, 10/15/27
 

Ba1

  

505

  
 

280

  Methanex Corporation,
Senior Notes,
5.25%, 12/15/29
 

Ba1

  

295

  
 

520

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

B1

  

542

  
 

575

  W.R. Grace Holdings LLC,
Senior Notes,
5.625%, 08/15/29 (g)
 

B3

  

587

  
   

3,314

  

Consumer Products — .61%

 
 

105

  CD&R Smokey Buyer, Inc.,
Senior Notes,
6.75%, 07/15/25 (g)
 

B2

  

110

  
 

93

  Life Time Inc, Senior Notes,
5.75%, 01/15/26 (g)
 

B3

  

96

  
 

145

  Mattel Inc., Senior Notes,
5.45%, 11/01/41
 

B1

  

173

  
 

325

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

Ba2

  

349

  
 

260

  Mattel Inc., Senior Notes,
6.20%, 10/01/40
 

B1

  

335

  
 

340

  Wolverine World Wide, Inc.,
Senior Notes,
4%, 08/15/29 (g)
 

Ba2

  

327

  
   

1,390

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

Container — .79%

 

$

310

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

Caa3

 

$

309

  
 

235

  Mauser Packaging Solutions,
Senior Notes,
8.50%, 04/15/24 (g)
 

B3

  

242

  
 

1,200

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

Caa2

  

1,265

  
   

1,816

  

Energy — 13.48%

 
 

285

  Aethon United BR, LP,
Senior Notes,
8.25% 02/15/26 (g)
 

B3

  

305

  
 

900

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

Caa1

  

903

  
 

800

  Citgo Petroleum Corporation,
Senior Notes,
7%, 06/15/25 (g)
 

B3

  

818

  
 

530

  Comstock Resources, Inc.,
Senior Notes,
5.875%, 01/15/30 (g)
 

B3

  

545

  
 

340

  Comstock Resources, Inc.,
Senior Notes,
6.75%, 03/01/29 (g)
 

B3

  

368

  
 

695

  Continental Resources, Inc.,
Senior Notes,
5.75%, 01/15/31 (g)
 

Baa3

  

817

  
 

795

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

Ba1

  

1,062

  
 

540

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

Ba3

  

535

  
 

470

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

Ba1

  

637

  
 

598

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

Ba3

  

632

  
 

110

  Endeavor Energy Resources, L.P.,
Senior Notes.
6.625%, 07/15/25 (g)
 

Ba3

  

116

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

$

700

  EQT Corporation, Senior Notes,
7.50%, 02/01/30
 

Ba1

 

$

896

  
 

375

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

B3

  

347

  
 

440

  Gulfport Energy Corporation,
Senior Notes,
8%, 05/17/26 (g)
 

B3

  

477

  
 

265

  HilCorp Energy, L.P.,
Senior Notes,
5.75%, 02/01/29 (g)
 

Ba3

  

272

  
 

275

  HilCorp Energy, L.P.,
Senior Notes,
6%, 02/01/31 (g)
 

Ba3

  

285

  
 

605

  Independence Energy Finance
LLC, Senior Notes,
7.25%, 05/01/26 (g)
 

B2

  

629

  
 

1,505

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

B2

  

1,546

  
 

490

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

Caa1

  

483

  
 

1,780

  NGL Energy Partners L.P.,
Senior Notes,
7.50%, 02/01/26 (g)
 

B1

  

1,833

  
 

345

  Nustar Logistics, L.P.,
Senior Notes,
5.75%, 10/01/25
 

Ba3

  

369

  
 

1,190

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

Ba3

  

1,294

  
 

310

  Occidental Petroleum Corporation,
Senior Notes,
6.125%, 01/01/31
 

Ba2

  

376

  
 

290

  Occidental Petroleum Corporation,
Senior Notes,
6.375%, 09/01/28
 

Ba2

  

344

  
 

100

  Occidental Petroleum Corporation,
Senior Notes,
6.45%, 09/15/36
 

Ba2

  

127

  
 

230

  Occidental Petroleum Corporation,
Senior Notes,
6.625%, 09/01/30
 

Ba2

  

285

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

285

  Occidental Petroleum Corporation,
Senior Notes,
7.50%, 05/01/31
 

Ba2

 

$

375

  
 

180

  Occidental Petroleum Corporation,
Senior Notes,
7.875%, 09/15/31
 

Ba2

  

241

  
 

790

  Occidental Petroleum Corporation,
Senior Notes,
7.95%, 06/15/39
 

Ba2

  

1,042

  
 

470

  Occidental Petroleum Corporation,
Senior Notes,
8%, 07/15/25
 

Ba2

  

546

  
 

625

  Occidental Petroleum Corporation,
Senior Notes,
8.50%, 07/15/27
 

Ba2

  

778

  
 

1,190

  Occidental Petroleum Corporation,
Senior Notes,
8.875%, 07/15/30
 

Ba2

  

1,606

  
 

660

  Petroleos Mexicanos, Senior Notes,
6.625%, 06/15/35
 

Ba3

  

632

  
 

650

  Petroleos Mexicanos, Senior Notes,
7.69%, 01/23/50
 

Ba3

  

628

  
 

215

  Range Resources, Corporation,
Senior Notes,
8.25%, 01/15/29
 

B1

  

239

  
 

530

  Range Resources, Corporation,
Senior Notes,
9.25%, 02/01/26
 

B1

  

570

  
 

315

  Rockcliff Energy II LLC,
Senior Notes,
5.50%, 10/15/29 (g)
 

B3

  

324

  
 

320

  Solaris Midstream Holdings, LLC,
Senior Notes,
7.625%, 04/01/26 (g)
 

B3

  

337

  
 

420

  Southwestern Energy Company,
Senior Notes,
4.75%, 02/01/32
 

Ba3

  

442

  
 

39

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

Caa3

  

29

  
 

635

  Tallgrass Energy Partners, L.P.,
Senior Notes,
6%, 09/01/31 (g)
 

B1

  

629

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

$

345

  Tallgrass Energy Partners, L.P.,
Senior Notes,
6%, 03/01/27 (g)
 

B1

 

$

359

  
 

450

  Tallgrass Energy Partners, L.P.,
Senior Notes,
6%, 12/31/30 (g)
 

B1

  

450

  
 

370

  Tallgrass Energy Partners, L.P.,
Senior Notes,
7.50%, 10/01/25 (g)
 

B1

  

401

  
 

675

  Targa Resources Partners, L.P.,
Senior Notes,
4%, 01/15/32 (g)
 

Ba1

  

705

  
 

295

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

Ba1

  

316

  
 

435

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

Ba1

  

485

  
 

137

  Transocean Phoenix 2, Ltd.,
Senior Notes,
7.75%, 10/15/24 (g)
 

(e)

  

139

  
 

221

  Transocean Pontus, Ltd.,
Senior Notes,
6.125%, 08/01/25 (g)
 

Caa1

  

216

  
 

165

  Transocean Proteus, Ltd.,
Senior Notes,
6.25%, 12/01/24 (g)
 

(e)

  

163

  
 

450

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

B3

  

468

  
 

390

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

B3

  

409

  
 

410

  Venture Global Calcasieu Pass,
LLC, Senior Notes,
3.875%, 08/15/29 (g)
 

Ba3

  

426

  
 

510

  Venture Global Calcasieu Pass,
LLC, Senior Notes,
4.125%, 08/15/31 (g)
 

Ba3

  

539

  
 

945

  Vine Energy Holdings, LLC,
Senior Notes,
6.75%, 04/15/29 (g)
 

B1

  

1,025

  
   

30,820

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

Entertainment & Leisure — 4.49%

 

$

315

  AMC Entertainment Holdings, Inc.,
Senior Notes,
10%, 06/15/26 (g)
 

Ca

 

$

310

  
 

475

  Carnival Corporation, Senior Notes,
4%, 08/01/28 (g)
 

Ba2

  

471

  
 

710

  Carnival Corporation, Senior Notes,
5.75%, 03/01/27 (g)
 

B2

  

710

  
 

635

  Carnival Corporation, Senior Notes,
6%, 05/01/29 (g)
 

B2

  

630

  
 

1,065

  Carnival Corporation, Senior Notes,
7.625%, 03/01/26 (g)
 

B2

  

1,110

  
 

525

  Carnival Corporation, Senior Notes,
9.875%, 08/01/27 (g)
 

B1

  

595

  
 

245

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

B3

  

251

  
 

650

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

B3

  

666

  
 

410

  Cinemark USA, Inc., Senior Notes,
5.25%, 07/15/28 (g)
 

Caa1

  

399

  
 

285

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

B3

  

292

  
 

305

  Merlin Entertainment Limited,
Senior Notes,
5.75%, 06/15/26 (g)
 

B2

  

318

  
 

730

  NCL Corporation Ltd., Senior Notes,
5.875%, 03/15/26 (g)
 

Caa1

  

726

  
 

215

  NCL Finance, Ltd., Senior Notes,
6.125%, 03/15/28 (g)
 

Caa1

  

213

  
 

590

  Royal Caribbean Cruises, Ltd.,
Senior Notes,
5.50%, 04/01/28 (g)
 

B2

  

599

  
 

635

  Royal Caribbean Cruises, Ltd.,
Senior Notes,
5.50%, 08/31/26 (g)
 

B2

  

642

  
 

75

  Royal Caribbean Cruises, Ltd.,
Senior Notes,
9.125%, 06/15/23 (g)
 

B2

  

80

  
 

415

  Royal Caribbean Cruises, Ltd.,
Senior Notes,
10.875%, 06/01/23 (g)
 

Ba2

  

453

  
 

960

  SeaWorld Parks & Entertainment,
Inc.,Senior Notes,
5.25%, 08/15/29 (g)
 

Caa1

  

978

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

$

615

  Viking Cruises, Ltd., Senior Notes,
7%, 02/15/29 (g)
 

Caa2

 

$

613

  
 

190

  Viking Cruises, Ltd., Senior Notes,
13%, 05/15/25 (g)
 

B2

  

214

  
   

10,270

  

Financial — 10.31%

 
 

425

  Acrisure, LLC, Senior Notes,
4.25%, 02/15/29 (g)
 

B2

  

412

  
 

695

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

Caa2

  

697

  
 

1,375

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

Caa2

  

1,512

  
 

315

  Alliant Holdings, Senior Notes,
5.875%, 11/01/29 (g)
 

Caa2

  

321

  
 

665

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

Caa2

  

687

  
 

195

  AmWins Group, Inc., Senior Notes,
4.875%, 06/30/29 (g)
 

B3

  

197

  
 

970

  Apollo Commercial Real Estate
Finance, Inc., Senior Notes,
4.625%, 06/15/29 (g)
 

Ba2

  

941

  
 

825

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

B2

  

880

  
 

475

  Cobra Acquisition Company, LLC,
Senior Notes,
6.375%, 11/01/29 (g)
 

B2

  

470

  
 

745

  Enact Holdings, Inc., Senior Notes,
6.50%, 08/15/25 (g)
 

Ba2

  

814

  
 

475

  Freedom Mortgage Corporation,
Senior Notes,
6.625%, 01/15/27 (g)
 

B2

  

464

  
 

585

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

Caa2

  

604

  
 

485

  Home Point Capital, Inc.,
Senior Notes,
5%, 02/01/26 (g)
 

B3

  

450

  
 

790

  Hub Holdings LLC, Senior Notes,
5.625%, 12/1/29 (g)
 

Caa2

  

808

  
 

1,090

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

Caa2

  

1,119

  
 

460

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

Ba3

  

478

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

980

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

B2

 

$

982

  
 

490

  Jane Street Group LLC,
Senior Notes,
4.50%, 11/15/29 (g)
 

Ba2

  

496

  
 

505

  LPL Holdings, Inc., Senior Notes,
4%, 03/15/29 (g)
 

Ba2

  

516

  
 

75

  LPL Holdings, Inc., Senior Notes,
4.375%, 05/15/31 (g)
 

Ba2

  

77

  
 

480

  Midcap Financial Issuer Trust,
Senior Notes,
5.625%, 01/15/30 (g)
 

B1

  

475

  
 

950

  Midcap Financial Issuer Trust,
Senior Notes,
6.50%, 05/01/28 (g)
 

B1

  

993

  
 

685

  Navient Corporation, Senior Notes,
4.875%, 03/15/28
 

Ba3

  

683

  
 

500

  Navient Corporation, Senior Notes,
5%, 03/15/27
 

Ba3

  

510

  
 

630

  Navient Corporation, Senior Notes,
5.50%, 03/15/29
 

Ba3

  

631

  
 

1,115

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

Ba3

  

1,190

  
 

550

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

Ba3

  

602

  
 

215

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

Ba3

  

237

  
 

300

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

Ba2

  

317

  
 

390

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

Ba2

  

438

  
 

810

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

Ba2

  

901

  
 

300

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

Ba2

  

343

  
 

840

  PennyMac Financial Services, Inc.,
Senior Notes,
4.25%, 02/15/29 (g)
 

B1

  

806

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

$

300

  PennyMac Financial Services, Inc.,
Senior Notes,
5.375%, 10/15/25 (g)
 

B1

 

$

307

  
 

790

  Prog Holdings, Inc., Senior Notes,
6%, 11/15/29 (g)
 

B1

  

814

  
 

335

  SLM Corporation, Senior Notes,
4.20%, 10/29/25
 

Ba1

  

351

  
 

240

  Starwood Property Trust,
Senior Notes,
3.75%, 12/31/24 (g)
 

Ba3

  

243

  
 

320

  United Wholesale Mortgage, LLC,
Senior Notes,
5.50%, 04/15/29 (g)
 

Ba3

  

313

  
 

490

  United Wholesale Mortgage, LLC,
Senior Notes,
5.75%, 06/15/27 (g)
 

Ba3

  

489

  
   

23,568

  

Food/Tobacco — 1.36%

 
 

770

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

Ba2

  

797

  
 

230

  Kraft Foods Group, Senior Notes,
6.875%, 01/26/39
 

Baa3

  

337

  
 

485

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

B2

  

513

  
 

330

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

B2

  

341

  
 

780

  Triton Water Holdings, Inc.,
Senior Notes
6.25%, 04/01/29 (g)
 

Caa1

  

753

  
 

360

  US Foods, Inc., Senior Notes,
4.625%, 06/01/30 (g)
 

B3

  

364

  
   

3,105

  

Gaming — 5.80%

 
 

160

  Affinity Gaming Corporation,
Senior Notes,
6.875%, 12/15/27 (g)
 

B3

  

166

  
 

420

  Caesar's Entertainment, Inc.,
Senior Notes,
4.625%, 10/15/29 (g)
 

Caa1

  

422

  
 

375

  Caesar's Resorts, Senior Notes,
5.75%, 07/01/25 (g)
 

B1

  

391

  
 

1,410

  Caesar's Resorts, Senior Notes,
8.125%, 07/01/27 (g)
 

Caa1

  

1,558

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

275

  Cirsa Finance International,
S.A.R.L., Senior Notes,
4.50%, 03/15/27 (g) (EUR)
 

B3

 

$

306

  
 

235

  International Game Technology Plc,
Senior Notes,
4.125%, 04/15/26 (g)
 

Ba3

  

241

  
 

375

  International Game Technology Plc,
Senior Notes,
5.25%, 01/15/29 (g)
 

Ba3

  

397

  
 

1,165

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

Ba3

  

1,299

  
 

395

  MGM China Holdings, Limited,
Senior Notes,
4.75%, 02/01/27 (g)
 

Ba3

  

384

  
 

315

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

Ba3

  

317

  
 

435

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

B1

  

493

  
 

140

  MGM Resorts International,
Senior Notes,
4.75%, 10/15/28
 

Ba3

  

145

  
 

500

  Midwest Gaming Borrower, LLC,
Senior Notes,
4.875%, 05/01/29 (g)
 

B3

  

505

  
 

965

  Peninsula Pacific Entertainment
LLC, Senior Notes,
8.50%, 11/15/27 (g)
 

B3

  

1,048

  
 

105

  Raptor Acquisition, Senior Notes,
4.875%, 11/01/26 (g)
 

(e)

  

106

  
 

230

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

Caa2

  

246

  
 

1,390

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

Caa2

  

1,552

  
 

585

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

Caa2

  

616

  
 

350

  Studio City Finance Ltd.,
Senior Notes,
5%, 01/15/29 (g)
 

B1

  

313

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

$

1,390

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

B2

 

$

1,421

  
 

450

  Wynn Macau Ltd., Senior Notes,
5.50%, 01/15/26 (g)
 

B2

  

423

  
 

995

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

B2

  

917

  
   

13,266

  

Healthcare — 10.82%

 
 

250

  AdaptHealth, LLC, Senior Notes,
5.125%, 03/01/30 (g)
 

B1

  

252

  
 

780

  Bausch Health Companies, Inc.,
Senior Notes,
4.875%, 06/01/28 (g)
 

Ba2

  

796

  
 

85

  Bausch Health Companies, Inc.,
Senior Notes,
7%, 01/15/28 (g)
 

B3

  

85

  
 

515

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

B3

  

506

  
 

1,970

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

B3

  

2,076

  
 

1,600

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

B3

  

1,688

  
 

640

  Cano Health, LLC, Senior Notes,
6.25%, 10/01/28 (g)
 

Caa2

  

635

  
 

775

  Centene Corporation, Senior Notes,
4.625%, 12/15/29
 

Ba1

  

833

  
 

455

  CHS/Community Health Systems,
Inc, Senior Notes,
6%, 01/15/29 (g)
 

B2

  

486

  
 

915

  CHS/Community Health Systems,
Inc, Senior Notes,
6.125%, 04/01/30 (g)
 

Caa2

  

908

  
 

370

  CHS/Community Health Systems,
Inc, Senior Notes,
6.875%, 04/15/29 (g)
 

Caa2

  

377

  
 

900

  CHS/Community Health Systems,
Inc, Senior Notes,
8%, 12/15/27 (g)
 

B2

  

974

  
 

155

  DaVita Healthcare Partners, Inc.,
Senior Notes,
4.625%, 06/01/30 (g)
 

Ba3

  

159

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

230

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

Baa3

 

$

269

  
 

450

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

Baa3

  

535

  
 

1,585

  Mozart Debt Merger, Senior Notes,
3.875%, 04/01/29 (g)
 

B1

  

1,579

  
 

2,350

  Mozart Debt Merger, Senior Notes,
5.25%, 10/01/29 (g)
 

Caa1

  

2,379

  
 

550

  Option Care Health, Inc.,
Senior Notes,
4.375%, 10/31/29 (g)
 

B3

  

550

  
 

1,070

  Organon & Company, Senior Notes,
5.125%, 04/30/31 (g)
 

B1

  

1,115

  
 

530

  Radiology Partners, Inc.,
Senior Notes,
9.25%, 02/01/28 (g)
 

Caa2

  

549

  
 

275

  RP Escrow Issuer LLC,
Senior Notes,
5.25%, 12/15/25 (g)
 

B2

  

277

  
 

435

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

B3

  

459

  
 

475

  Tenet Healthcare Corporation,
Senior Notes,
4.375%, 01/15/30 (g)
 

B1

  

480

  
 

1,640

  Tenet Healthcare Corporation,
Senior Notes,
6.125%, 10/01/28 (g)
 

Caa1

  

1,726

  
 

424

  Tenet Healthcare Corporation,
Senior Notes,
6.875%, 11/15/31
 

Caa1

  

484

  
 

810

  Tenet Healthcare Corporation,
Senior Notes,
7.50%, 04/01/25 (g)
 

B1

  

851

  
 

630

  Teva Pharma Finance
Netherlands III BV, Senior Notes,
4.75%, 05/09/27
 

Ba2

  

639

  
 

800

  Teva Pharma Finance
Netherlands III BV, Senior Notes,
5.125%, 05/09/29
 

Ba2

  

806

  
 

360

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

Ba2

  

376

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

$

465

  Teva Pharma Finance
Netherlands III BV, Senior Notes,
6.75%, 03/01/28
 

Ba2

 

$

500

  
 

1,290

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

Ba2

  

1,380

  
   

24,729

  

Information Technology — 2.24%

 
 

135

  Boxer Parent Company, Inc.,
Senior Notes,
6.50%, 10/02/25 (g) (EUR)
 

B2

  

161

  
 

150

  Boxer Parent Company, Inc.,
Senior Notes,
7.125%, 10/02/25 (g)
 

B2

  

157

  
 

130

  Logmein, Inc., Senior Notes,
5.50%, 09/01/27 (g)
 

B2

  

131

  
 

475

  Match Group Holdings II, LLC,
Senior Notes,
3.625%, 10/01/31 (g)
 

Ba3

  

461

  
 

145

  Match Group Holdings II, LLC,
Senior Notes,
4.125%, 08/01/30 (g)
 

Ba3

  

147

  
 

1,165

  Photo Holdings Merger,
Senior Notes,
8.50%, 10/01/26 (g)
 

B2

  

1,212

  
 

475

  Roblox Corporation, Senior Notes,
3.875%, 05/01/30 (g)
 

Ba2

  

480

  
 

1,755

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

B3

  

1,902

  
 

215

  Veritas Bermuda Ltd.,
Senior Notes,
7.50%, 09/01/25 (g)
 

B3

  

223

  
 

245

  Viavi Solutions, icn., Senior Notes,
3.75%, 10/01/29 (g)
 

Ba2

  

244

  
   

5,118

  

Lodging — .65%

 
 

150

  Hilton Domestic Operating
Company, Inc.,Senior Notes,
5.375%, 05/01/25 (g)
 

Ba2

  

155

  
 

170

  Hilton Domestic Operating
Company, Inc.,Senior Notes,
5.75%, 05/01/28 (g)
 

Ba2

  

181

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

125

  Hilton Worldwide Finance, LLC,
Senior Notes,
4.875%, 04/01/27
 

Ba2

 

$

129

  
 

370

  Park Intermediate Holdings, LLC,
Senior Notes,
4.875%, 05/15/29 (g)
 

B1

  

377

  
 

300

  Park Intermediate Holdings, LLC,
Senior Notes,
5.875%, 10/01/28 (g)
 

B1

  

313

  
 

155

  RLJ Lodging Trust, L.P.,
Senior Notes,
3.75%, 07/01/26 (g)
 

Ba3

  

155

  
 

185

  XHR L.P., Senior Notes,
4.875%, 06/01/29 (g)
 

B1

  

188

  
   

1,498

  

Manufacturing — .93%

 
 

240

  Apex Tool /BC Mountain,
9%, 02/15/23 (g)
 

Caa3

  

227

  
 

255

  Hillenbrand Inc., Senior Notes,
3.75%, 03/01/31
 

Ba1

  

255

  
 

15

  Hillenbrand Inc., Senior Notes,
5%, 09/15/26
 

Ba1

  

17

  
 

735

  Madison IAQ, LLC, Senior Notes,
4.125%, 06/30/28 (g)
 

B1

  

736

  
 

420

  Madison IAQ, LLC, Senior Notes,
5.875%, 06/30/29 (g)
 

Caa1

  

419

  
 

300

  Mueller Water Products,
Senior Notes,
4%, 06/15/29 (g)
 

Ba1

  

304

  
 

160

  Roller Bearing Company of
America, Inc., Senior Notes,
4.375%, 10/15/29 (g)
 

B2

  

163

  
   

2,121

  

Metals & Mining — 4.17%

 
 

745

  Alcoa Nederland Holding B.V.,
Senior Notes,
5.50%, 12/15/27 (g)
 

Ba1

  

796

  
 

300

  Allegheny Technologies,
Senior Notes,
5.125%, 10/01/31
 

B3

  

301

  
 

780

  Arconic Corporation, Senior Notes,
6.125%, 02/15/28 (g)
 

Ba3

  

827

  
 

708

  Big River Steel, LLC, Senior Notes,
6.625%, 01/31/29 (g)
 

Ba2

  

766

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

$

232

  Cleveland-Cliffs, Inc., Senior Notes,
9.875%, 10/17/25 (g)
 

Ba2

 

$

262

  
 

385

  Constellium N.V., Senior Notes,
3.75%, 04/15/29 (g)
 

B2

  

377

  
 

310

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

Baa3

  

324

  
 

320

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

Baa3

  

349

  
 

1,182

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

Baa3

  

1,441

  
 

330

  Freeport McMoran, Inc.,
Senior Notes,
5.45%, 03/15/43
 

Baa3

  

415

  
 

265

  GrafTech Finance Inc.,
Senior Notes,
4.625%, 12/15/28 (g)
 

Ba3

  

269

  
 

1,145

  Hecla Mining Company,
Senior Notes,
7.25%, 02/15/28
 

B3

  

1,227

  
 

315

  HudBay Minerals, Inc.,
Senior Notes,
4.50%, 04/01/26 (g)
 

B3

  

315

  
 

545

  HudBay Minerals, Inc.,
Senior Notes,
6.125%, 04/01/29 (g)
 

B3

  

577

  
 

62

  New Gold Inc., Senior Notes,
7.50%, 07/15/27 (g)
 

B3

  

66

  
 

745

  Novelis Corporation, Senior Notes,
4.75%, 01/30/30 (g)
 

B1

  

783

  
 

405

  Ryerson Inc., Senior
Secured Notes,
8.50%, 08/01/28 (g)
 

B2

  

440

  
   

9,535

  

Other Telecommunications — 1.27%

 
 

475

  Consolidated Communications,
Inc., Senior Notes,
6.50%, 10/01/28 (g)
 

B2

  

504

  
 

385

  Embarq Corporation, Senior Notes,
7.995%, 06/01/36
 

Ba2

  

434

  
 

475

  Level 3 Financing, Inc.,
Senior Notes,
3.75%, 07/15/29 (g)
 

Ba3

  

455

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

1,065

  Lumen Technologies, Inc.,
Senior Notes,
4.50%, 01/15/29 (g)
 

B2

 

$

1,033

  
 

475

  Lumen Technologies, Inc.,
Senior Notes,
5.375%, 06/15/29 (g)
 

B2

  

477

  
   

2,903

  

Real Estate Investment Trust Securities — .67%

 
 

915

  American Fin Tr Senior Notes,
4.50%, 09/30/28 (g)
 

(e)

  

918

  
 

620

  Service Properties Trust,
Senior Notes,
4.35%, 10/01/24
 

Ba2

  

610

  
   

1,528

  

Restaurants — 1.22%

 
 

572

  Dave and Buster's, Inc.,
Senior Notes,
7.625%, 11/01/25 (g)
 

B1

  

611

  
 

723

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

Ba3

  

797

  
 

760

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

Ba3

  

959

  
 

395

  YUM Brands, Inc., Senior Notes,
7.75%, 04/01/25 (g)
 

Ba3

  

416

  
   

2,783

  

Retail — 2.02%

 
 

320

  At Home Group, Inc., Senior Notes
7.125%, 07/15/29 (g)
 

Caa1

  

316

  
 

445

  Bath and Body Works, Inc.,
Senior Notes,
6.625%, 10/01/30 (g)
 

Ba2

  

505

  
 

65

  Bath and Body Works, Inc.,
Senior Notes,
6.694%, 01/15/27
 

Ba2

  

75

  
 

260

  Bath and Body Works, Inc.,
Senior Notes,
6.95%, 03/01/33
 

B1

  

304

  
 

350

  Bath and Body Works, Inc.,
Senior Notes,
7.50%, 06/15/29
 

Ba2

  

396

  
 

277

  Bath and Body Works, Inc.,
Senior Notes,
9.375%, 07/01/25 (g)
 

Ba2

  

338

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

$

480

  LSF9 Atlantis Holdings, LLC,
Senior Notes,
7.75%, 02/15/26 (g)
 

B2

 

$

484

  
 

250

  Petsmart, Inc., Senior Notes,
4.75%, 02/15/28 (g)
 

B1

  

257

  
 

1,450

  Petsmart, Inc., Senior Notes,
7.75%, 02/15/29 (g)
 

Caa1

  

1,575

  
 

355

  Rent-A-Center, Inc., Senior Notes,
6.375%, 02/15/29 (g)
 

B1

  

369

  
   

4,619

  

Satellites — 3.04%

 
 

815

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

B1

  

856

  
 

1,750

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

B2

  

1,956

  
 

2,855

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

B3

  

3,301

  
 

475

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

Caa1

  

367

  
 

450

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

Ba3

  

464

  
   

6,944

  

Services — 8.68%

 
 

635

  Adtalem Global Education,
Inc., Senior Notes,
5.50%, 03/01/28 (g)
 

B1

  

618

  
 

480

  ADT Security Corporation,
Senior Notes,
4.125%, 08/01/29 (g)
 

Ba3

  

474

  
 

895

  Advantage Sales and Marketing,
Inc., Senior Notes,
6.50%, 11/15/28 (g)
 

B2

  

938

  
 

635

  Albion Financing 1 S.a.r.l.,
Senior Notes,
6.125%, 10/15/26 (g)
 

B1

  

642

  
 

315

  Albion Financing 1 S.a.r.l.,
Senior Notes,
8.75%, 04/15/27 (g)
 

B3

  

320

  
 

1,000

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

Caa1

  

1,067

  
 

560

  Black Knight, Inc., Senior Notes,
3.625%, 09/01/28 (g)
 

Ba3

  

559

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

625

  Clarivate Science Holdings Corp.,
Senior Secured Notes,
3.875%, 07/01/28 (g)
 

B1

 

$

628

  
 

440

  Clarivate Science Holdings Corp.,
Senior Secured Notes,
4.875%, 07/01/29 (g)
 

Caa1

  

444

  
 

130

  Constellation Automotive Ltd.,
Senior Notes,
4.875%, 07/15/27 (g)(GBP)
 

B2

  

173

  
 

215

  Dun & Bradstreet Corporation,
Senior Notes,
5%, 12/15/29 (g)
 

Caa1

  

217

  
 

640

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

B3

  

645

  
 

660

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

B3

  

685

  
 

790

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

Ba2

  

866

  
 

295

  Gartner, Inc., Senior Notes,
3.625%, 06/15/29 (g)
 

Ba3

  

297

  
 

555

  GFL Enironmental, Inc.,
Senior Notes,
4.75%, 06/15/29 (g)
 

B3

  

561

  
 

1,265

  H&E Equipment Services,
Senior Notes,
3.875%, 12/15/28 (g)
 

B2

  

1,257

  
 

115

  IPD 3 B.V., Senior Notes,
5.50%, 12/01/25 (g) (EUR)
 

B3

  

134

  
 

320

  Millennium Escrow Corporation,
Senior Notes,
6.625%, 08/01/26 (g)
 

B2

  

322

  
 

310

  Presidio Holding, Inc., Senior Notes,
4.875%, 02/01/27 (g)
 

B1

  

319

  
 

455

  Presidio Holding, Inc., Senior Notes,
8.25%, 02/01/28 (g)
 

Caa1

  

485

  
 

465

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

Ba3

  

498

  
 

710

  Prime Security Services Borrower,
LLC, Senior Notes,
6.25%, 01/15/28 (g)
 

B3

  

739

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

$

140

  Ritchie Brothers Holdings Inc.,
Senior Notes,
4.75%, 12/15/31 (g)
 

Ba3

 

$

146

  
 

300

  Sabre GLBL, Inc., Senior Notes,
7.375%, 09/01/25 (g)
 

Ba3

  

310

  
 

360

  Sabre GLBL, Inc., Senior Notes,
9.25%, 04/15/25 (g)
 

Ba3

  

402

  
 

972

  Staples, Inc., Senior Notes
7.50%, 04/15/26 (g)
 

B2

  

994

  
 

645

  Staples, Inc., Senior Notes
10.75%, 04/15/27 (g)
 

Caa1

  

606

  
 

1,460

  TK Elevator U.S. Newco, Inc.,
Senior Notes,
5.25%, 07/15/27 (g)
 

B1

  

1,533

  
 

1,309

  TK Elevator U.S. Newco, Inc.,
Senior Notes,
7.625%, 07/15/28 (g)
 

Caa1

  

1,397

  
 

775

  United Rentals (North America),
Inc., Senior Notes,
3.75%, 01/15/32
 

Ba2

  

779

  
 

100

  Verde Bidco, Senior Notes,
4.625%, 10/01/26 (g) (EUR)
 

B2

  

116

  
 

400

  Wash Multifamily Acquisition, Inc.,
Senior Notes,
5.75%, 04/15/26 (g)
 

B3

  

420

  
 

245

  White Cap Buyer, LLC,
Senior Notes,
6.875%, 10/15/28 (g)
 

Caa1

  

257

  
   

19,848

  

Supermarkets — 1.85%

 
 

1,050

  Albertsons Companies, LLC,
Senior Notes,
3.50%, 03/15/29 (g)
 

Ba3

  

1,051

  
 

540

  Albertsons Companies, LLC,
Senior Notes,
4.875%, 02/15/30 (g)
 

Ba3

  

583

  
 

545

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

Ba3

  

576

  
 

370

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

(e)

  

428

  
 

220

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

(e)

  

266

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

680

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

B2

 

$

861

  
 

425

  United Natural Foods, Inc.,
Senior Notes,
6.75%, 10/15/28 (g)
 

B2

  

455

  
   

4,220

  

Transportation — .33%

 
 

730

  Watco Companies, LLC,
Senior Notes,
6.50%, 06/15/27 (g)
 

Caa1

  

761

  

Utilities — 5.45%

 
 

310

  Calpine Corporation, Senior Notes,
4.50%, 02/15/28 (g)
 

Ba2

  

322

  
 

625

  Calpine Corporation, Senior Notes,
5%, 02/01/31 (g)
 

B2

  

630

  
 

795

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

B2

  

803

  
 

235

  First Energy Corporation,
Senior Notes,
7.375%, 11/15/31
 

Ba1

  

317

  
 

670

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

Ba1

  

722

  
 

620

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

(e)

  

641

  
 

135

  Pattern Energy Operations L.P.,
Senior Notes,
4.50%, 08/15/28 (g)
 

Ba3

  

140

  
 

540

  PG&E Corporation, Senior Notes,
5%, 07/01/28
 

B1

  

568

  
 

805

  PG&E Corporation, Senior Notes,
5.25%, 07/01/30
 

B1

  

844

  
 

420

  Pike Corporation, Senior Notes,
5.50%, 09/01/28 (g)
 

B3

  

421

  
 

1,795

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

Ba3

  

1,829

  
 

1,735

  Vistra Operations Company, LLC,
Senior Notes,
4.375%, 05/01/29 (g)
 

Ba2

  

1,735

  
 

1,065

  Vistra Operations Company, LLC,
Senior Notes,
7%, (g)(h)
 

Ba3

  

1,080

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

$

2,270

  Vistra Operations Company, LLC,
Senior Notes,
8%, (g)(h)
 

Ba3

 

$

2,401

  
   

12,453

  

Wireless Communications — 1.91%

 
 

950

  Iliad Holdings SAS, Senior Notes,
6.50%, 10/15/26 (g)
 

B2

  

999

  
 

725

  Sprint Capital Corporation,
Senior Notes,
6.875%, 11/15/28
 

Ba2

  

916

  
 

2,194

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

Ba2

  

2,461

  
   

4,376

  
  Total Corporate Debt Securities
(Total cost of $265,208)
    

275,061

  

CONVERTIBLE DEBT SECURITIES — .15% (d)(f)

 

Energy — .15%

 
 

412

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

(e)

  

346

  
  Total Convertible Debt Securities
(Total cost of $283)
    

346

  

BANK DEBT SECURITIES — 11.06% (d)(f)

 

Aerospace & Defense — .38%

 
 

635

  Peraton Holding Corporation,
4.50%, 02/01/28
 

B1

  

635

  
 

220

  Peraton Holding Corporation,
8.50%, 02/01/29
 

(e)

  

222

  
   

857

  

Airlines — .67%

 
 

345

  AAdvantage Loyalty IP, Ltd.,
5.50%, 04/20/28
 

Ba2

  

357

  
 

775

  Mileage Plus Holdings, LLC,
6.25%, 06/21/27
 

Baa3

  

816

  
 

357

  United Airlines, nc.,
4.50%, 04/21/28
 

Ba1

  

358

  
   

1,531

  

Consumer Products — .18%

 
 

419

  Life Time Fitness,
5.75%, 12/16/24
 

B2

  

420

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

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

BANK DEBT SECURITIES — continued

 

Container — .09%

 

$

185

  Kouti B.V.,
3.75%, 08/31/28 (EUR)
 

B2

 

$

211

  

Energy — 1.13%

 
 

1,873

  BCP Raptor, LLC,
5.25%, 06/24/24
 

B2

  

1,868

  
 

345

  Prairie ECI Acquiror, LP,
4.854%, 03/11/26
 

B3

  

334

  
 

372

  Stonepeak Lonestar,
4.624%, 10/19/26
 

B1

  

373

  
   

2,575

  

Healthcare — .66%

 
 

314

  ADMI Corporation,
4%, 12/23/27
 

B2

  

313

  
 

417

  ADMI Corporation,
3.875%, 12/23/27
 

B2

  

414

  
 

773

  Gainwell Acquisition Corporation,
4.75%, 10/01/27
 

B2

  

774

  
   

1,501

  

Information Technology — .72%

 
 

170

  Banff Merger Sub Inc.,
6%, 02/27/26
 

Caa2

  

171

  
 

673

  Polaris Newco, Inc.,
4.50%, 06/2/28
 

B2

  

673

  
 

190

  Proofpoint, Inc.,
6.75%, 08/31/29
 

(e)

  

192

  
 

600

  RealPage Inc.,
7.25%, 04/23/29
 

(e)

  

607

  
   

1,643

  

Manufacturing — .18%

 
 

431

  Apex Tool Group, LLC,
6.75%, 08/01/24
 

Caa1

  

422

  

Satellites — 1.22%

 
 

2,025

  Intelsat Jackson Holdings, S.A.,
8%, 11/27/23 (b)
 

(e)

  

2,019

  
 

634

  Intelsat Jackson Holdings, S.A.,
5.392%, 7/13/22 (b)
 

(e)

  

633

  
 

140

  Intelsat Jackson Holdings, S.A.,
8.625%, 01/02/24 (b)
 

(e)

  

140

  
   

2,792

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

Services — 2.68%

 

$

760

  Ascend Learning, LLC,
4%, 12/10/28
 

B2

 

$

758

  
 

985

  Ascend Learning, LLC,
6.25%, 11/18/29
 

Caa2

  

987

  
 

320

  Celestial Saturn Parent, Inc.,
7%, 06/4/29
 

Caa1

  

322

  
 

320

  Renaissance Holding Corp.,
7.104%, 05/29/26
 

Caa2

  

321

  
 

2,180

  Ultimate Software Group, Inc.,
5.75%, 05/03/27
 

Caa1

  

2,184

  
 

1,540

  Ultimate Software Group, Inc.,
4%, 05/04/26
 

B1

  

1,530

  
 

30

  Ultimate Software Group, Inc.,
3.75%, 05/04/26
 

B1

  

30

  
   

6,132

  

Wireless Communications — 3.15%

 
 

878

  Asurion LLC,
3.354%, 07/31/27
 

Ba3

  

872

  
 

2,664

  Asurion LLC,
5.354%, 01/31/28
 

B3

  

2,671

  
 

3,670

  Asurion LLC,
5.354%, 01/20/29
 

B3

  

3,652

  
   

7,195

  
  Total Bank Debt Securities
(Total cost of $24,863)
    

25,279

  

Shares

       

PREFERRED STOCK — 4.19% (d)(f)

 

Energy — 1.76%

 
 

3,750

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

(e)

  

4,038

  

Financial — .14%

 
 

325

  Alliant Services, Series A,
Cvt, 9.75%,
Acquisition Date 11/06/20,
Cost $320(c)
 

(e)

  

321

  

Healthcare — .53%

 
 

9,383

  Avantor, Inc., Series A, Cvt,
6.25%, 05/15/22
 

(e)

  

1,213

  

Manufacturing — .53%

 
 

694

  Danaher Corporation, Cvt,
5%, 04/15/23
 

(e)

  

1,206

  

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


The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2021 — Continued (Dollar Amounts in Thousands)

Shares

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

PREFERRED STOCK — continued

 

Utilities — 1.23%

 
 

6,150

  American Electric Power, Cvt,
Series B, 6.125%, 03/15/22
 

(e)

 

$

308

  
 

10,632

  American Electric Power, Cvt,
Series C, 6.125%, 08/15/23
 

(e)

  

559

  
 

22,232

  NextEra Energy, Inc., Cvt,
5.279%, 03/01/23
 

(e)

  

1,279

  
 

12,300

  Southern Company, Cvt,
6.75%, 08/01/22
 

(e)

  

661

  
   

2,807

  
    Total Preferred Stock
(Total cost of $8,168)
    

9,585

  
    TOTAL INVESTMENTS —
135.72
(Total cost of $298,522)
    

310,271

  
    CASH AND OTHER ASSETS
LESS LIABILITIES — (35.72)% (d)
    

(81,655

)

 
    

NET ASSETS — 100.00%

   

$

228,616

  

(a)  Denotes income is not being accrued.

(b)  Denotes issuer is in bankruptcy proceedings.

(c)  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 $4,359 or 1.91% of total net assets as of December 31, 2021.

(d)  Percentages indicated are based on total net assets to common shareholders of $228,616.

(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 notes to the portfolio of investments for valuation policy. Total market value of Rule 144A securities amounted to $207,699 as of December 31, 2021.

(h)  Perpetual security with no stated maturity date.

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

(CAD) Canadian Dollar

(EUR) Euro

(GBP) British Pound

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


The New America High Income Fund, Inc.

Statement of Assets and Liabilities
December 31, 2021

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

Assets:

 
INVESTMENTS IN SECURITIES, at value (Identified
cost of $298,522 see Schedule of Investments
and Note 1)
 

$

310,271

  

CASH

  

1,305

  

RECEIVABLES:

 

Investment securities sold

  

953

  

Interest and dividends

  

4,470

  

PREPAID EXPENSES

  

92

  

Total assets

 

$

317,091

  

Liabilities:

 

CREDIT AGREEMENT (Note 4)

 

$

84,000

  

PAYABLES:

 

Dividend on common stock

  

2,980

  

Investment securities purchased

  

1,273

  

Investment management fees (Note 3)

  

93

  

Interest on loan (Note 4)

  

2

  

ACCRUED EXPENSES

  

108

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

19

  

Total liabilities

 

$

88,475

  

Net Assets

 

$

228,616

  

Represented By:

 

COMMON STOCK:

 
$0.01 par value, 40,000,000 shares authorized,
23,374,744 shares issued and outstanding
 

$

234

  

CAPITAL IN EXCESS OF PAR VALUE

  

239,667

  

DISTRIBUTABLE EARNINGS

  

(11,285

)

 
Net Assets Applicable To Common Stock
(Equivalent to $9.78 per share, based on
23,374,744 shares outstanding)
 

$

228,616

  

Statement of Operations
For the Year Ended
December 31, 2021
(Dollars in thousands)

Investment Income: (Note 1) 

Interest income

 

$

17,626

  

Dividend income

  

644

  

Loan fee income

  

78

  

Other income

  

81

  

Total investment income

 

$

18,429

  

Expenses:

 

Cost of leverage:

 

Interest expense (Note 4)

 

$

811

  

Loan fees (Note 4)

  

24

  

Total cost of leverage

 

$

835

  

Professional services:

 

Investment Advisor (Note 3)

 

$

1,097

  

Legal

  

240

  

Custodian and transfer agent

  

237

  

Audit

  

61

  

Total professional services

 

$

1,635

  

Administrative:

 

General administrative (Note 6)

 

$

540

  

Directors

  

218

  

Insurance

  

133

  

Shareholder meeting

  

41

  

Shareholder communications

  

39

  

NYSE

  

25

  

Total administrative

 

$

996

  

Total expenses

 

$

3,466

  

Net investment income

 

$

14,963

  
Realized and Unrealized Gain on Investment
Activities:
 

Net realized gain (loss)

 

Investments

 

$

5,745

  

Forward currency exchange contracts

  

10

  

Foreign currency transactions

  

(9

)

 

Net realized gain

 

$

5,746

  

Change in net unrealized gain (loss)

 

Investments

 

$

(5,262

)

 

Forward currency exchange contracts

  

67

  

Change in net unrealized loss

  

(5,195

)

 

Net gain on investments

 

$

551

  
Net increase in net assets resulting
from operations
 

$

15,514

  

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


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,
2021
 For the
Year Ended
December 31,
2020
 

From Operations:

 

Net investment income

 

$

14,963

  

$

14,778

  

Realized gain (loss) on investments and currencies, net

  

5,746

   

(11,097

)

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

(5,195

)

  

6,360

  

Net increase in net assets resulting from operations

 

$

15,514

  

$

10,041

  

From Fund Share Transactions:

 
Net asset value of 5,826 shares issued to common stockholders for the
reinvestment of dividends in 2021
 

$

58

  

$

  

Distributions to Common Stockholders:

 

Distributable earnings ($.68 and $.65 per share in 2021 and 2020, respectively)

 

$

(15,834

)

 

$

(15,248

)

 

Total net decrease in net assets

 

$

(262

)

 

$

(5,207

)

 

Net Assets Applicable to Common Stock:

 

Beginning of period

 

$

228,878

  

$

234,085

  

End of period

 

$

228,616

  

$

228,878

  

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


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,

 
  

2021

 

2020

 

2019

 

2018

 

2017

 

NET ASSET VALUE:

 

Beginning of period

 

$

9.79

  

$

10.02

  

$

8.90

  

$

10.19

  

$

9.89

  

NET INVESTMENT INCOME

  

.64

   

.63

   

.62

   

.66

   

.71

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

.03

   

(.21

)

  

1.16

   

(1.25

)

  

.30

  

TOTAL FROM INVESTMENT OPERATIONS

  

.67

   

.42

   

1.78

   

(.59

)

  

1.01

  

DISTRIBUTIONS TO COMMON SHAREHOLDERS:

 

From net investment income

  

(.68

)

  

(.65

)

  

(.66

)

  

(.70

)

  

(.71

)

 

TOTAL DISTRIBUTIONS

  

(.68

)

  

(.65

)

  

(.66

)

  

(.70

)

  

(.71

)

 

NET ASSET VALUE:

 

End of period

 

$

9.78

  

$

9.79

  

$

10.02

  

$

8.90

  

$

10.19

  

PER SHARE MARKET VALUE:

 

End of period

 

$

9.33

  

$

8.68

  

$

9.13

  

$

7.56

  

$

9.40

  

TOTAL INVESTMENT RETURN†

  

15.62

%

  

2.94

%

  

30.09

%

  

(12.70

)%

  

9.19

%

 

  †  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.
25


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 Ended December 31,

 
  

2021

 

2020

 

2019

 

2018

 

2017

 

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

 

$

228,616

  

$

228,878

  

$

234,085

  

$

207,893

  

$

238,244

  

EXPENSE RATIOS:

 

Ratio of interest expense to average net assets

  

.35

%

  

.57

%

  

1.26

%

  

1.16

%

  

.76

%

 

Ratio of leverage expenses to average net assets

  

.01

%

  

.01

%

  

.01

%

  

.01

%

  

.01

%

 

Ratio of operating expenses to average net assets

  

1.14

%

  

1.20

%

  

1.16

%

  

1.18

%

  

1.14

%

 

RATIO OF TOTAL EXPENSES TO AVERAGE NET ASSETS

  

1.50

%

  

1.78

%

  

2.43

%

  

2.35

%

  

1.91

%

 

RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS

  

6.46

%

  

6.80

%

  

6.38

%

  

6.77

%

  

6.92

%

 

PORTFOLIO TURNOVER RATE

  

50.73

%

  

53.11

%

  

65.64

%

  

71.56

%

  

70.11

%

 

  (a)  Dollars in thousands.

The accompanying notes are an integral part of these financial statements.
26


The New America High Income Fund, Inc.

Information Regarding
Senior Securities

  

As of December 31,

 
  

2021

 

2020

 

2019

 

2018

 

2017

 

TOTAL AMOUNT OUTSTANDING:

 

Credit Agreement

 

$

84,000,000

  

$

84,000,000

  

$

91,000,000

  

$

91,000,000

  

$

91,000,000

  
ASSET COVERAGE: 

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

 

$

3,722

  

$

3,725

  

$

3,572

  

$

3,285

  

$

3,618

  

Credit Agreement Asset Coverage (2)

  

372

%

  

372

%

  

357

%

  

328

%

  

362

%

 

  (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.
27


The New America High Income Fund, Inc.

Statement of Cash Flows (Dollars in thousands)

  For the
Year
Ended
December 31,
2021
 

Cash Flows From Operating Activities:

 

Purchases of portfolio securities

 

$

(159,861

)

 

Sales of portfolio securities

  

156,679

  

Interest and dividends received

  

19,283

  

Operating expenses paid

  

(3,503

)

 

Net cash provided by operating activities

 

$

12,598

  

Cash Flows From Financing Activities:

 

Common stock dividends

 

$

(14,957

)

 

Net cash used by financing activities

 

$

(14,957

)

 

Net Decrease in Cash

 

$

(2,359

)

 

Cash at Beginning of Period

  

3,664

  

Cash at End of Period

 

$

1,305

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

Purchases of portfolio securities

 

$

(159,861

)

 

Sales of portfolio securities

  

156,679

  

Net increase in net assets resulting from operations

  

15,514

  

Amortization of interest

  

666

  

Net realized gain on investments and currencies

  

(5,746

)

 

Change in net unrealized depreciation on investments and other financial instruments

  

5,195

  

Decrease in interest and dividend receivable

  

188

  

Decrease in prepaid expenses

  

1

  

Decrease in accrued expenses and other payables

  

(38

)

 

Net cash provided by operating activities

 

$

12,598

  

The accompanying notes are an integral part of these financial statements.
28


The New America High Income Fund, Inc.

Notes to Financial Statements
December 31, 2021

(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.


29


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2021

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. Loan fee income is recorded when received. 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.


30


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2021

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, 2021 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*

 

$

  

$

297,037

  

$

3,649

  

$

300,686

  

Preferred Stock

 

Energy

  

   

4,038

   

   

4,038

  

Finance

  

   

321

   

   

321

  

Healthcare

  

1,212

   

   

   

1,212

  

Manufacturing

  

1,206

   

   

   

1,206

  

Utilities

  

2,249

   

559

   

   

2,808

  

Total Investments

 

$

4,667

  

$

301,955

  

$

3,649

  

$

310,271

  
Forward Currency
Exchange
Contracts
 

$

  

$

(19

)

 

$

  

$

(19

)

 

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


31


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2021

  Fair Value as
of 12/31/21
 Valuation
Techniques
 Unobservable
Input
 Input
Values
 Impact to Valuation
from an increase
to input
 
Rivian Holdings LLC,
Senior notes
 

$

3,649,000

  Market making broker
bid quote
 New private placement
issuance
 

Pricing

 

Increase

 

The Fund owned one Level 3 securities at December 31, 2021. It is identified on the Schedule of Investments with a footnote (i) and has a value of $3,649,000. 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 lack of trading, lack of vendor coverage, liquidity, resale restrictions, company specific or industry events and other market factors. The value is derived by the bid quote supplied by the market making broker.

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

  Securities
(000's)
 

Balance, December 31, 2020

 

$

320

  

Transfers out

  

(326

)

 

Purchases

  

3,431

  

Change in unrealized appreciation

  

224

  

Balance, December 31, 2021

 

$

3,649

  

The change in unrealized appreciation for level 3 securities still held at December 31, 2021, and still classified as level 3 was $218,000.

(2) Tax Matters and Distributions

At December 31, 2021, the total cost of securities (including temporary cash investments) for federal income tax purposes was approximately $299,491,000. Aggregate gross unrealized gain on securities in which there was an excess of value over tax cost was approximately $13,262,000. Aggregate gross unrealized loss on securities in which there was an excess of tax cost over value was approximately $2,482,000. Net unrealized gain on investments for tax purposes at December 31, 2021 was approximately $10,780,000.

At December 31, 2021, 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

 

$

4,911,000

  

Short-term

 

None

 
 

17,369,000

  

Long-term

 

None

 

$

22,280,000

      

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, 2021, the Fund had total non-expiring capital loss carryforwards of $22,280,000.

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 2021 and 2020 of approximately $15,834,000 and $15,248,000, respectively, was from ordinary income.

As of December 31, 2021, the components of distributable earnings on a tax basis were approximately:

Unrealized Gain on Investments

 

$

10,780,000

  

Capital Loss Carryforwards

  

(22,280,000

)

 

Other Accumulated Losses

  

  

Undistributed Net Investment Income

  

215,000

  
  

$

(11,285,000

)

 

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


32


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2021

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. As of December 31, 2021, there were no financial reporting reclassifications recorded to the net asset accounts.

As of December 31, 2021, the Fund had no post-October losses which are deferred until fiscal year 2022 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 2018-2020, or expected to be taken in the Fund's 2021 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 $1,097,000 in management fees during the year ended December 31, 2021. 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 $100 million. T. Rowe Price's fee is calculated based on assets attributable to the Fund's common stock and amounts borrowed under the credit facility. At December 31, 2021, the fee payable to T. Rowe Price was approximately $93,000, as shown 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, 2021 the total amount outstanding on the loan was $84,000,000. The term of the facility has been extended to October 2022. 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 .95% and will be in effect until January 31, 2022 at which time the rate will be reset. For the year ended December 31, 2021 the weighted average rate on the loan was approximately .97% and the maximum amount borrowed during the period was $84,000,000.

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 year ended December 31, 2021 the Fund paid approximately $24,000 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.


33


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2021

(5) Purchases and Sales of Securities

Purchases and proceeds of sales or maturities of long-term securities during the year ended December 31, 2021 were approximately:

Cost of purchases

 

$

158,281,000

  

Proceeds of sales or maturities

 

$

157,553,000

  

(6) Related Party Transactions

The Fund paid approximately $229,000 during the year ended December 31, 2021 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, 2021 the Fund had forward currency exchange contracts outstanding as follows:

Counterparty

 Settlement
Date
 Receive
(Deliver)
 

Asset

 

Liability

 Unrealized
Appreciation
(Depreciation)
 

Canadian Imperial Bank of Commerce

 

1/31/22

 

CAD

(265

)

 

$

209

  

$

210

  

$

(1

)

 

UBS

 

1/31/22

 

EUR

(249

)

  

283

   

284

   

(1

)

 

Bank of America

 

1/31/22

 

EUR

(187

)

  

212

   

213

   

(1

)

 

Bank of America

 

1/31/22

 

EUR

(187

)

  

212

   

213

   

(1

)

 

Bank of America

 

1/31/22

 

EUR

(208

)

  

235

   

237

   

(2

)

 

State Street Bank

 

1/31/22

 

GBP

(767

)

  

1,025

   

1,038

   

(13

)

 

Net unrealized loss on open forward currency exchange contracts

 

$

(19

)

 

Fair Value of Derivative Instruments—The fair value of derivative instruments as of December 31, 2021 was as follows:

  Asset Derivatives
December 31, 2021
 

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

$

(19

)

 

The effect of derivative instruments that are included on the Statement of Operations for the year ended December 31, 2021 was as follows:

Amount of Realized Gain on Derivatives

 

Forward currency exchange contracts

 

$

10

  

Change in Unrealized Depreciation on Derivatives

 

Forward currency exchange contracts

 

$

67

  

(8) LIBOR Transition

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in the ASU provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and


34


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2021

believes the adoption of this ASU will not have a material impact on the consolidated financial statements.

(9) Covid-19 Risks

In early 2020, an outbreak of a novel strain of coronavirus (COVID-19) emerged globally. This coronavirus has resulted in closing international borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general public concern and uncertainty. The impact of this outbreak has negatively affected the worldwide economy, as well as the economies of individual countries, the financial health of individual companies and the market in general in significant and unforeseen ways. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund, including

political, social and economic risks. Any such impact could adversely affect the Fund's performance, the performance of the securities in which the Fund Invests and may lead to losses on your investment in the Fund. The ultimate impact of COVID-19 on the financial performance of the Fund's investments is not reasonably estimable at this time.

(10) 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, 2021.


35


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, 2021, the related statement of operations and cash flows 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, 2021, the results of its operations and cash flows 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, 2021 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 21, 2022


36


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information
(Unaudited)

Investment Objective, Strategies and Restrictions

Investment Objective

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, commonly known as "junk bonds". The Fund's investment objective may not be changed without the affirmative vote of the holders of a majority of the outstanding shares of the Fund's Common Stock, which means the lesser of (a) more than 50% of the Fund's Common Stock or (b) 67% or more of the Fund's Common Stock present at a meeting at which more than 50% of the outstanding shares of such stock are present or represented by proxy.

Investment Strategies

The Fund will normally invest at least 80% of its net assets (including any borrowings for investment purposes) in a widely diversified portfolio of high yield corporate bonds, as well as income-producing convertible securities and preferred stocks that are rated below investment grade or not rated by any major credit rating agency but deemed to be below investment grade by the Fund's investment adviser, T. Rowe Price Associates, Inc. (the "Adviser"). The Fund uses leverage through borrowing from a credit facility (not to exceed 331/3% of the Fund's total assets) to employ its investment strategies.

If a holding is split rated (i.e., rated investment grade by at least one rating agency and below investment grade by another rating agency), the lower rating will be used for purposes of the Fund's 80% investment policy. High yield bonds are rated below investment grade (BB and lower, or an equivalent rating), and tend to provide high income in an effort to compensate investors for their higher risk of default, which is the failure to make required interest or principal payments. High yield bond issuers include small or relatively new companies lacking the history or capital to merit investment grade status, former blue chip companies downgraded because of financial problems, companies electing to borrow heavily to finance or avoid a takeover or buyout, and firms with heavy debt loads.

While high yield corporate bonds are typically issued with a fixed interest rate, bank loans have floating interest rates that reset periodically (typically quarterly or monthly). Bank loans represent amounts borrowed by companies or other entities from banks and other lenders. In many cases, the borrowing companies have significantly more debt than equity and the loans have been issued in connection with recapitalizations, acquisitions, leveraged buyouts, or refinancings. The loans held by the Fund may be senior or subordinate obligations of the borrower. The Fund may invest up to 10% of its total assets in bank loans.

The Fund may purchase securities of any maturity and its weighted average maturity will vary with market conditions. In selecting investments, the Fund relies extensively on the Adviser's credit research analysts. The Fund intends to focus primarily on the higher-quality range (BB and B, or an equivalent rating) of the high yield market.

While most assets will typically be invested in U.S. dollar-denominated bonds, the Fund may also invest in bonds of foreign issuers (including securities of issuers in emerging markets). The Fund may invest up to 20% of its total assets in non-U.S. dollar-denominated securities and may invest without limitation in U.S. dollar-denominated bonds of foreign issuers. The Fund may also use forward currency exchange contracts to protect the Fund's non-U.S. dollar-denominated holdings from adverse currency movements by hedging the Fund's foreign currency exposure back to the U.S. dollar.


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Supplemental Information
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The Adviser integrates environmental, social, and governance ("ESG") factors into its investment research process. While ESG matters vary widely, the Adviser generally considers ESG to mean: Environmental or "E" matters, such as climate change, resource depletion, waste, pollution, or deforestation; Social or "S" matters, such as companies' relationships with their employees and suppliers, including labor standards, diversity, and human rights issues; and Governance or "G" matters, such as shareholder rights, bribery and corruption, executive pay, and board composition. The Adviser focus on the ESG factors it considers most likely to have a material impact on the performance of the holdings in the Fund's portfolio.

The Fund may sell holdings for a variety of reasons, including, but not limited to adjusting the portfolio's average maturity, duration, or overall credit quality, shifting assets into and out of higher-yielding instruments, or reducing its exposure to certain instruments.

Notwithstanding any of the foregoing, when market conditions warrant a temporary defensive investment strategy, the Fund may invest without limitation in money market instruments, including rated and unrated commercial paper of domestic and foreign corporations, certificates of deposit, bankers' acceptances and other obligations of banks, repurchase agreements and short-term obligations issued or guaranteed by the United States government or its instrumentalities or agencies. The Fund reserves the right to invest in investment grade securities and securities of comparable quality when the difference in yields between quality classifications is relatively narrow or for temporary defensive purposes.

Other Portfolio Investments and Practices

The Fund and the Adviser reserve the right to engage in certain investment practices described below in order to help achieve the Fund's investment objective.

Leverage. The Fund intends to use leverage through borrowing from a credit facility. The Fund is permitted to engage in other transactions, such as reverse repurchase agreements and issuance of debt securities or preferred securities, which have the effect of leverage, but currently has no intention to do so.

The Fund also may borrow money as a temporary measure for extraordinary or emergency purposes, including the payment of dividends and the settlement of securities transactions, which otherwise might require untimely dispositions of Fund securities. The Fund also may incur leverage through the use of investment management techniques (e.g., futures contracts and options on futures contracts).

Changes in the value of the Fund's portfolio (including investments bought with amounts borrowed) will be borne entirely by the shareholders. If leverage is used and there is a net decrease (or increase) in the value of the Fund's investment portfolio, the leverage will decrease (or increase) the net asset value ("NAV") per share to a greater extent than if the Fund were not leveraged. During periods in which the Fund uses leverage, the fees paid to the Adviser for investment advisory services (which are effectively borne by the Common Stockholders and not holders of the Fund's leverage) will be higher than if the Fund did not use leverage because the fees paid will be calculated on the basis of the Fund's managed assets, including the amount obtained from leverage, which may create an incentive to leverage the Fund.


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The 1940 Act generally prohibits the Fund from engaging in most forms of leverage representing indebtedness other than preferred shares, unless immediately after such incurrence, the Fund's total assets less all liabilities and indebtedness not represented by senior securities (for these purposes, "total net assets") is at least 300% of the aggregate senior securities representing indebtedness (i.e., the use of leverage through senior securities representing indebtedness may not exceed 331/3% of the Fund's total net assets (including the proceeds from leverage)). Additionally, under the 1940 Act, the Fund generally may not declare any dividend or other distribution upon any class of its capital shares, or purchase any such capital shares, unless at the time of such declaration or purchase, this asset coverage test is satisfied. If the Fund borrows, the Fund intends, to the extent possible, to prepay all or a portion of the principal amount of the borrowing to the extent necessary in order to maintain the required asset coverage. Failure to maintain certain asset coverage requirements could result in an event of default.

The Fund will pay, and Common Stockholders will effectively bear, any costs and expenses related to any borrowings. Such costs and expenses would include the higher investment advisory fee resulting from the use of such leverage.

Capital, if any, raised through leverage will be subject to dividend or interest payments, which may exceed the income and appreciation on the assets purchased. Entering into a borrowing program involves expenses and other costs and may limit the Fund's freedom to pay dividends on common shares or to engage in other activities. Unless the income and appreciation, if any, on assets acquired with leverage proceeds exceed the associated costs of such borrowings (and other Fund expenses), the use of leverage would diminish the investment performance of the Fund's Common Stock compared with what it would have been without leverage.

Repurchase Agreements. The Fund may enter into repurchase agreements. A repurchase agreement is a contract under which the Fund acquires a security for a relatively short period (usually not more than one week) subject to the obligation of the seller to repurchase and the Fund to re-sell such security at a fixed time and price (representing the Fund's cost plus interest). It is the Fund's present intention to enter into repurchase agreements only with commercial banks and registered broker-dealers and only with respect to obligations of the United States government or its agencies or instrumentalities. Repurchase agreements may also be viewed as loans made by the Fund which are collateralized by the securities subject to repurchase. The Adviser will monitor such transactions to ensure that the value of the underlying securities will be at least equal at all times to the total amount of the repurchase obligation, including the interest factor.

Reverse Repurchase Agreements. The Fund may enter into reverse repurchase agreements with respect to debt obligations which could otherwise be sold by the Fund. A reverse repurchase agreement is an instrument under which the Fund may sell an underlying debt instrument and simultaneously obtain the commitment of the purchaser (a commercial bank or a broker or dealer) to sell the security back to the Fund at an agreed upon price on an agreed upon date. The value of underlying securities will be at least equal at all times to the total amount of the resale obligation, including the interest factor. The Fund receives payment for such securities only upon physical delivery or evidence of book entry transfer by its custodian. Securities sold by the Fund under a reverse repurchase agreement must be either segregated pending repurchase or the proceeds must be segregated on the Fund's books and records pending repurchase.


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Supplemental Information
(Unaudited)

When-Issued and Delayed Delivery Securities. From time to time, in the ordinary course of business, the Fund may purchase securities on a when-issued or delayed delivery basis (i.e., delivery and payment can take place beyond the customary settlement date for transactions of securities of that nature). The purchase price and the interest rate payable on the securities are fixed on the transaction date. The securities so purchased are subject to market fluctuation, and no interest accrues to the Fund until delivery and payment take place. At the time the Fund makes the commitment to purchase securities on a when-issued or delayed delivery basis, it will record the transaction and thereafter reflect the value of such securities in determining its NAV. The Fund will make commitments for such when-issued transactions only with the intention of actually acquiring the securities. To facilitate such acquisitions, the Fund's custodian bank will maintain liquid assets from its portfolio, marked to market daily and having value equal to or greater than such commitments. On the delivery dates for such transactions, the Fund will meet its obligations from maturities or sales of the portfolio securities and/or from then available cash flow.

Permitted Investments in Direct Placement Securities. The Fund is permitted by its investment objective and policies to invest in direct placement securities, which are treated as restricted securities.

Notes, Loan Participations, and Assignments. The Fund may make investments in a company through the purchase or execution of a privately negotiated note representing the equivalent of a loan. Larger loans to corporations or governments, including governments of less developed countries, may be shared or syndicated among several lenders, usually banks. The Fund could participate in such syndicates or could buy part of a loan, becoming a direct lender. These loans may often be obligations of companies or governments in financial distress or in default.

Interest Rate Transactions. The Fund may 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.

Options. The Fund may write (sell) call options which are traded on national securities exchanges with respect to securities in its portfolio. The Fund may only write "covered" call options, that is, options on securities it holds in its portfolio or has an immediate right to acquire through conversion or exchange of securities held in its portfolio. The Fund reserves the right to write call options on its portfolio securities in an attempt to realize a greater current return than would be realized on the securities alone. The Fund may also write call options as a partial hedge against a possible market decline. The Fund may also enter into "closing purchase transactions" in order to terminate its obligation as a writer of a call option prior to the expiration of the option.

Futures Contracts and Related Options. The Adviser does not currently intend that the Fund will invest in futures contracts or related options with respect to the portfolio. However, 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. This technique could be employed if the Adviser anticipates that interest rates may rise, in which event the Fund could sell a futures contract to protect against the potential decline in the value of its portfolio securities. Conversely, if declining interest rates were anticipated, the Fund could purchase a futures contract to protect against a potential increase in the price of securities the Fund intends to purchase.


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Supplemental Information
(Unaudited)

In the event the Fund determines to invest in futures contracts and options thereon, it will not purchase or sell such instruments if, immediately thereafter, the amount committed to margin plus the amount paid for premiums for unexpired options on futures contracts would exceed 5% of the value of the Fund's total assets. There is no overall limitation on the percentage of the Fund's portfolio securities which may be subject to a hedge position. The Fund also intends to comply with Rule 4.5 of the Commodity Futures Trading Commission (the "CFTC") under which the Fund will be exempted from registration as a commodity pool operator. Subject to the approval of the Board of Directors, the Fund would have the right to write options on futures contracts for income purposes without CFTC registration. The extent to which the Fund may enter into transactions involving futures contracts also may be limited by the requirements of the Code for qualification as a regulated investment company.

Securities Loans. The Fund reserves the right to make secured loans of its portfolio securities amounting to not more than one-third of the value of its total assets, thereby realizing additional income. As a matter of policy securities loans are made to unaffiliated broker-dealers pursuant to agreements requiring that loans be continuously secured by collateral in cash or short-term debt obligations at least equal at all times to the value of the securities subject to the loan. The borrower pays to the Fund an amount equal to any interest or dividends received on the securities subject to the loan. The Fund retains all or a portion of the interest received on investment of the cash collateral or receives a fee from the borrower. Although voting rights or rights to consent with respect to the loaned securities pass to the borrower, the Fund retains the right to call the loans at any time on reasonable notice, and it will do so in order that the securities may be voted by the Fund if the holders of such securities are asked to vote upon or consent to matters materially affecting the investment. The Fund may also call such loans in order to sell the securities involved.

Investment Restrictions

The following investment restrictions are fundamental policies of the Fund, and may not be amended without the affirmative vote of the holders of a majority of the outstanding shares of the Fund's Common Stock, which means the lesser of (a) more than 50% of the Fund's Common Stock or (b) 67% or more of the Fund's Common Stock present at a meeting at which more than 50% of the outstanding shares of such stock are present or represented by proxy. Under these restrictions, the Fund may not:

1.  Borrow money (through reverse repurchase agreements or otherwise) or issue senior securities, except as permitted by Section 18 of the 1940 Act.

2.  Pledge, hypothecate, mortgage or otherwise encumber its assets, except to secure borrowings permitted by restriction 1 above. Collateral arrangements with respect to margins for futures contracts and options are not deemed to be pledges or other encumbrances for purposes of this restriction.

3.  Purchase securities on margin, except such short-term credits as may be necessary for the clearance of purchases and sales of securities and except that the Fund may make margin payments in connection with transactions in futures contracts and options.

4.  Make short sales of securities or maintain a short position for the account of the Fund unless at all times when a short position is open the Fund owns an equal amount of such securities or owns securities which,


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The New America High Income Fund, Inc.

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Supplemental Information
(Unaudited)

without payment of any further consideration, are convertible into or exchangeable for securities of the same issue as, and in equal amount to, the securities sold short.

5.  Underwrite securities issued by other persons except to the extent that, in connection with the disposition of its portfolio investments, the Fund may be deemed to be an underwriter under the federal securities laws.

6.  Purchase or sell real estate (including real estate mortgage loans), although the Fund may purchase securities of issuers that deal in real estate, securities that are secured by interests in real estate and securities representing interests in real estate.

7.  Purchase or sell commodities or commodity contracts, except that the Fund may purchase or sell financial futures contracts and related options.

8.  Make loans, except by purchase of debt obligations in which the Fund may invest consistently with its investment policies, by entering into repurchase agreements with respect to not more than 25% of the value of its total assets, or through the lending of its portfolio securities with respect to not more than one-third of the value of its total assets.

9.  Acquire more than 10% of the voting securities of any issuer.

10.  Invest more than 25% of the value of its total assets in any one industry, provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the United States government or its agencies or instrumentalities.

11.  Buy or sell oil, gas or other mineral leases, rights or royalty contracts, although the Fund may purchase securities of issuers which deal in, represent interests in or are secured by interests in such leases, rights or contracts.

12.  Make investments for the purpose of exercising control or management over the issuer of any security.

Principal Risks

High Yield Bond Investing Risk. High yield bond investing (which is sometimes referred to as "junk investing") subjects the Fund to heightened credit risk. Issuers of high yield bonds and loans are not as strong financially as those with higher credit ratings, so the issuers and lenders are more vulnerable to financial setbacks and recession than more creditworthy issuers, which may impair their ability to make interest and principal payments. As a result, below investment grade investments carry greater risks of default and erratic price swings due to real or perceived changes in the credit quality of the issuer or lender.

Because the credit quality of the issuer is lower, such investments are more sensitive to developments affecting the issuer's or lender's underlying fundamentals, such as changes in financial condition or a particular country's general economy. In addition, the entire below investment-grade bond and loan markets can experience sudden and sharp price swings due to a variety of factors, including changes in economic forecasts, stock market activity, large sustained sales by institutional investors, a high-profile default, or a change in the market's psychology. This type of volatility is usually associated more with stocks than bonds, but investors in lower-quality bonds and loans should


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Supplemental Information
(Unaudited)

also anticipate it. Since pooled investment vehicles, like registered investment companies, can be a major source of demand in certain high yield bond and loan markets, substantial cash flows into and out of these funds can affect prices. If, for example, a significant number of funds were to sell bonds or loans to meet shareholder redemptions, bond and loan prices could fall more than underlying fundamentals might justify.

Any investments in distressed or defaulted instruments subject the Fund to even greater credit risk than investments in other below investment-grade investments. Investments in obligations of restructured, distressed, and bankrupt issuers, including debt obligations that are already in default, generally trade significantly below par and may lack liquidity. Defaulted securities might be repaid only after lengthy bankruptcy proceedings, during which the issuer might not make any interest or other payments, and such proceedings may result in only partial recovery of principal or no recovery at all. Recovery could involve an exchange of the defaulted obligation for other debt instruments or equity securities of the issuer or its affiliates, each of which may in turn lack liquidity or be speculative and be valued by the Fund at significantly less than its original purchase price. In addition, investments in distressed issuers may subject the Fund to liability as a lender.

Fixed Income Markets Risk. The market price of investments owned by the Fund may go up or down, sometimes rapidly or unpredictably. The Fund's investments may decline in value due to factors affecting the overall fixed income markets, or particular industries or sectors. The value of a holding may decline due to developments related to a particular issuer, but also due to general fixed income market conditions, including real or perceived adverse economic developments such as changes in interest rates, credit quality, inflation, or currency rates, or generally adverse investor sentiment. The value of a holding may also decline due to factors that negatively affect a particular industry, such as labor shortages, increased production costs, or competitive conditions.

Interest Rate Risk. The prices of bonds and other fixed income securities typically increase as interest rates fall and prices typically decrease as interest rates rise (bond prices and interest rates usually move in opposite directions). Prices fall because the bonds and notes in the Fund's portfolio become less attractive to other investors when securities with higher yields become available. Generally, securities with longer maturities or durations and funds with longer weighted average maturities or durations have greater interest rate risk. As a result, in a rising interest rate environment, the NAV of a fund with a longer weighted average maturity or duration typically decreases at a faster rate than the NAV of a fund with a shorter weighted average maturity or duration. Interest rates have recently been near historically low levels. Extremely low or negative interest rates may increase the Fund's susceptibility to interest rate risk and reduce the Fund's yield. In addition, recent and potential future changes in monetary policy made by central banks and/or governments are likely to affect the level of interest rates. The discontinuation and replacement of a benchmark rate such as LIBOR (an indicative measure of the average interest rate at which major global banks could borrow from one another) may have a significant impact on the financial markets and may adversely impact the Fund's performance. As a result, rapid changes in interest rates may increase the Fund's overall exposure to interest rate risk.

Credit Quality Risk. An issuer of a debt instrument held by the Fund could default (fail to make scheduled interest or principal payments), potentially reducing the Fund's income, NAV and share price. Credit risk is increased when portfolio holdings are downgraded or the perceived financial condition of an issuer deteriorates. Holdings with an


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The New America High Income Fund, Inc.

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(Unaudited)

investment-grade rating (AAA through BBB, or an equivalent rating) should have a relatively low risk of encountering financial problems and a relatively high probability of future payments. However, holdings rated BBB (or an equivalent rating) or below are more susceptible to adverse economic conditions than other investment-grade holdings and may have speculative characteristics. Holdings rated below investment grade should be regarded as speculative because their issuers may be more susceptible to financial setbacks and recession than more creditworthy issuers (commonly referred to as "junk").

Callable Bonds Risk. During periods of falling interest rates, issuers of callable bonds may redeem securities with higher interest rates before their maturity. The Fund would then lose any price appreciation above the bond's call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the Fund's income.

Foreign Investing Risk. The Fund's investments outside the U.S. are subject to special risks, whether the securities (including depositary receipts and other instruments that represent interests in a non-U.S. issuer) are denominated in U.S. dollars or foreign currencies. These risks include potentially adverse local, political, social, and economic conditions overseas, greater volatility, lower liquidity, and the possibility that settlement practices and regulatory and accounting standards will differ from those of U.S. issuers. Foreign currencies could decline against the U.S. dollar, lowering the value of securities denominated in those currencies and possibly the Fund's share price. These risks are heightened for any investments in emerging markets, which are more susceptible to governmental interference, less efficient trading markets, and the imposition of local taxes or restrictions on gaining access to sales proceeds for foreign investors.

Emerging Market Securities Risk. The Fund may invest in securities of issuers located in "emerging markets." Because of less developed markets and economies and, in some countries, less mature governments and governmental institutions, the risks of investing in foreign securities can be intensified in the case of investments in issuers domiciled or operating in emerging market countries. These risks include high concentration of market capitalization and trading volume in a small number of issuers representing a limited number of industries, as well as a high concentration of investors and financial intermediaries; lack of liquidity and greater price volatility due to the smaller size of the market for such securities and lower trading volume; political and social uncertainties; national policies that may restrict the Fund's investment opportunities including restrictions on investing in issuers or industries deemed sensitive to relevant national interests; greater risks of expropriation, confiscatory taxation and nationalization; over-dependence on exports, especially with respect to primary commodities, making these economies vulnerable to changes in commodities prices; overburdened infrastructure and obsolete or unseasoned financial systems; environmental problems; less developed legal systems; and less reliable custodial services and settlement practices. Dividends paid by issuers in emerging market countries will generally not qualify for the reduced U.S. federal income tax rates applicable to qualified dividends under the Internal Revenue Code of 1986, as amended.

Foreign Currency Risk. Although the Fund will report its NAV and pay expenses and distributions in U.S. dollars, the Fund intends to invest in foreign securities denominated or quoted in currencies other than the U.S. dollar. Therefore, changes in foreign currency exchange rates will affect the U.S. dollar value of the Fund's investment securities and the NAV of its shares. The currencies of certain countries in which the Fund invests are more volatile than


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(Unaudited)

those of other countries and, therefore, the Fund's investments related to those countries may be more adversely impacted by currency rate fluctuations. Generally, if a foreign currency depreciates against the U.S. dollar (i.e., if the U.S. dollar strengthens), the value of the existing investment in the securities denominated in that currency will decline. When a given currency appreciates against the U.S. dollar (i.e., if the U.S. dollar weakens), the value of the existing investment in the securities denominated in that currency will rise. Certain foreign countries may impose restrictions on the ability of foreign securities issuers to make payments of principal and interest to investors located outside of the country, due to a blockage of foreign currency exchanges or otherwise.

Bank Loan Risk. Investments in bank loans expose the Fund to additional risks beyond those normally associated with more traditional debt instruments. The Fund's ability to receive payments in connection with a loan depends primarily on the financial condition of the borrower and whether or not a loan is secured by collateral, although there is no assurance that the collateral securing a loan will be sufficient to satisfy the loan obligation. Bank loans often have contractual restrictions on resale. These restrictions can delay or impede the Fund's ability to sell loans and may adversely affect the price that can be obtained. Loans and unlisted securities are typically less liquid than securities traded on national exchanges. The secondary market for loans may be subject to irregular trading activity and extended settlement periods, and the liquidity of bank loans can vary significantly over time. For example, if the credit quality of a bank loan unexpectedly declines significantly, secondary market trading in that floating rate loan can also decline. During periods of infrequent trading, valuing a bank loan can be more difficult and buying or selling a loan at an acceptable price may not be possible or may be delayed. In addition, bank loans may not be securities and therefore may not have the protections afforded by the federal securities laws, so investors in loans may have less protection against improper practices than investors in registered securities.

The terms of the bank loans held by the Fund may require that the borrowing company maintain collateral to support payment of its obligations. However, the value of the collateral securing a bank loan can decline or be insufficient to meet the obligations of the company. In addition, collateral securing a loan may be found invalid, may be used to pay other outstanding obligations of the borrower, or may be difficult to liquidate. The Fund's access to the collateral may be limited by bankruptcy, other insolvency laws, or by the type of loan the Fund has purchased. For example, if the Fund purchases a participation interest instead of an assignment, it would not have direct access to collateral of the borrower. As a result, a bank loan may not be fully collateralized and can decline significantly in value.

Leverage Risk. Leverage, to the extent it is used, creates three major types of risks for stockholders:

• the likelihood of greater volatility of NAV and market price of common stock;

• the possibility either that common stock income will fall if the interest rate on any borrowings rises, or that common stock income and distributions will fluctuate because the interest rate on any borrowings varies; and

• if the Fund leverages through borrowings, the Fund may not be permitted to declare dividends or other distributions with respect to its common shares, unless at the time thereof the Fund meets certain asset coverage requirements.


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(Unaudited)

Leverage involves certain additional risks, including the risk that the cost of leverage may exceed the return earned by the Fund on the proceeds of such leverage. The use of leverage will increase the volatility of changes in the Fund's NAV, market price and distributions. In the event of a general market decline in the value of assets in which the Fund invests, the effect of that decline will be magnified in the Fund because of the additional assets purchased with the proceeds of the leverage.

In addition, funds borrowed pursuant a credit facility may constitute a substantial lien and burden by reason of their prior claim against the income of the Fund and against the net assets of the Fund in liquidation. In the event of an event of default under a loan facility, lenders may have the right to cause a liquidation of the collateral (i.e., sell portfolio securities and other assets of the Fund) and, if any such default is not cured, the lenders may be able to control the liquidation as well. A leverage facility agreement may include covenants that impose on the Fund asset coverage requirements, Fund composition requirements and limits on certain investments, such as illiquid investments or derivatives, which are more stringent than those imposed on the Fund by the 1940 Act.

Liquidity Risk. The Fund may not be able to sell a holding in a timely manner at a desired price. Sectors of the bond market can experience sudden downturns in trading activity. During periods of reduced market liquidity, the spread between the price at which a security can be bought and the price at which it can be sold can widen, and the Fund may not be able to sell a holding readily at a price that reflects what the Adviser believes it should be worth. Securities with lower overall liquidity can also become more difficult to value. Liquidity risk may be the result of, among other things, the reduced number and capacity of traditional broker-dealers to make a market in fixed income securities or the lack of an active market. The potential for liquidity risk may be magnified by a rising interest rate environment or other circumstances where selling activity from fixed income investors may be higher than normal, potentially causing increased supply in the market.

Derivatives Risk. The use of forward currency exchange contracts exposes the Fund to additional volatility in comparison to investing directly in bonds and other debt instruments. These instruments can experience reduced liquidity and become difficult to value, and any of these instruments not traded on an exchange are subject to the risk that a counterparty to the transaction will fail to meet its obligations under the derivatives contract. The use of these instruments involves the risks that anticipated changes in currency movements or the creditworthiness of an issuer will not be accurately predicted. The values of the Fund's positions in options will fluctuate in response to changes in the value of the underlying reference asset, and the Fund is exposed to the risk that the underlying reference asset will not move in a direction that is favorable to the Fund. Selling options could limit the Fund's opportunity to profit from a greater increase in the market value of the reference asset or specific holdings within an underlying index. As a result, selling options could diminish the Fund's returns during periods of strong equity market performance. Unusual market conditions or the lack of a liquid market for particular options may reduce the Fund's returns. Recent regulations have changed the requirements related to the use of certain derivatives. Some of these new regulations have limited the availability of certain derivatives and made their use by funds more costly. It is expected that additional changes to the regulatory framework will occur, but the extent and impact of additional new regulations are not certain at this time. Changes in regulations could significantly impact the Fund's ability to invest in specific types of derivatives, which could limit the Fund's ability to employ certain strategies that use derivatives.


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(Unaudited)

Convertible Security and Preferred Stock Risk. Investments in convertible securities and preferred stocks subject the Fund to risks associated with both equity and fixed income securities, depending on the price of the underlying security and the conversion price. A convertible security may be called back by the issuer prior to maturity at a price that is disadvantageous to the Fund. In addition, convertible securities are typically issued by smaller-capitalized companies whose stock prices are more volatile than companies that have access to more conventional means of raising capital. Preferred stockholders would be paid after corporate bondholders, but before common stockholders, in the event a company fails.

Active Management Risk. The Adviser's judgments about the attractiveness, value, or potential appreciation of the Fund's investments may prove to be incorrect. The Fund could underperform other funds with a similar benchmark or similar investment program if the Fund's investment selections or overall strategies fail to produce the intended results. Regulatory, tax, or other developments may affect the investment strategies available to the Adviser, which could adversely affect the ability to implement the Fund's overall investment program and achieve the Fund's investment objective.

Market Conditions Risk. The value of investments held by the Fund may decline, sometimes rapidly or unpredictably, due to factors affecting certain issuers, particular industries or sectors, or the overall markets. Rapid or unexpected changes in market conditions could cause the Fund to liquidate its holdings at inopportune times or at a loss or depressed value. The value of a particular holding may decrease due to developments related to that issuer but also due to general market conditions, including real or perceived economic developments, such as changes in interest rates, credit quality, inflation, or currency rates, or generally adverse investor sentiment. The value of a holding may also decline due to factors that negatively affect a particular industry or sector, such as labor shortages, increased production costs, or competitive conditions. In addition, local, regional, or global events such as war, acts of terrorism, political and social unrest, regulatory changes, recessions, shifts in monetary or trade policies, natural or environmental disasters, and the spread of infectious diseases or other public health issues could have a significant negative impact on securities markets and the Fund's investments. Unpredictable events such as natural disasters, pandemics, and widespread health crises, including the coronavirus pandemic and related governmental and public responses, may lead to unexpected suspensions or closures of securities exchanges; travel restrictions or quarantines; business disruptions and closures; inability to obtain raw materials, supplies and component parts; reduced or disrupted operations for the Fund's service providers or issuers in which the Fund invests; and an extended adverse impact on global market conditions. Government intervention in markets may impact interest rates, market volatility, and security pricing. The occurrence, reoccurrence, and uncertainty of widespread diseases and health crises could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets of specific countries or worldwide.

Cybersecurity Risk. The Fund may be subject to operational and information security risks resulting from breaches in cybersecurity. Cybersecurity breaches may involve deliberate attacks and unauthorized access to the digital information systems (for example, through "hacking" or malicious software coding) used by the Fund or its third-party service providers but may also result from outside attacks such as denial-of-service attacks, which are efforts to make network services unavailable to intended users. These breaches may, among other things, result in financial losses to the Fund and its shareholders, cause the Fund to lose proprietary information, disrupt business operations,


47


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information
(Unaudited)

or result in the unauthorized release of confidential information. Further, cybersecurity breaches involving the Fund's third-party service providers, financial intermediaries, trading counterparties, or issuers in which the fund invests could subject the Fund to many of the same risks associated with direct breaches.

COVID-19 Risk. The illness COVID-19—caused by a novel coronavirus—has resulted in a global pandemic and major disruption to economies and markets around the world, including the United States. Financial markets have experienced extreme volatility and severe losses, and trading in many instruments has been disrupted. Liquidity for many instruments has been greatly reduced for periods of time. Some interest rates are very low and in some cases yields are negative. Some sectors of the economy and individual issuers have experienced particularly large losses. These circumstances may continue for an extended period of time, and as a result may affect adversely the value and liquidity of the Fund's investments. To the extent the impacts of COVID-19 continue, the Fund may experience negative impacts to its business that could exacerbate other risks described herein, including:

• significant mark-downs in the fair value of the Fund's investments and decreases in NAV per share;

• the Fund's investments may require a workout, restructuring, recapitalization or reorganizations that involve additional investment from the Fund and/or that result in greater risks and losses to the Fund;

• operational impacts on and availability of key personnel of the Adviser, custodian, and/or any of the Fund's other third-party service providers, vendors and counterparties as they face changed circumstances and/or illness related to the pandemic;

• difficulty in valuing the Fund's assets in light of significant changes in the financial markets, including difficulty in forecasting discount rates and making market comparisons, and circumstances affecting the Adviser and the Fund's service providers' personnel during the pandemic;

• significant changes to the valuations of pending or prospective investments; and

• limitations on the Fund's ability to make distributions or dividends, as applicable, to the Fund's common stockholders.

The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, including the Fund, are not known. As a result, the long-term impact of COVID-19 presents uncertainty and risk with respect to the Fund and the performance of its investments and ability to pay distributions. The full extent of the impact and effects of COVID-19 will depend on future developments.

Risk of Premium/Discount From NAV. The Fund is a closed-end investment company. Closed-end investment companies differ from open-end investment companies (commonly referred to as "mutual funds") in that closed-end investment companies have a fixed capital base, whereas open-end companies issue securities redeemable at NAV at any time at the option of the stockholder and typically engage in a continuous offering of their shares. Shares of closed-end funds frequently trade at a market price that is less than the value of the net assets attributable to those shares. The possibility that shares of the Fund will trade at a discount from NAV is a separate risk from the risk that the Fund's NAV will decrease. However, it should be noted that, in some cases, shares of closed-end funds may trade at a premium. The Fund cannot predict whether its Common Stock will trade at a premium or a discount in the future.


48


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 NPORT-P (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.

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.


49


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 28, 2021, the Board of Directors (the "Board") of The New America High Income Fund, Inc. (the "Fund"), including all of the Directors who are not "interested persons" of the Fund (the "Independent Directors"), approved the continuation of the investment advisory agreement dated December 2, 2002, between T. Rowe Price Associates, Inc. ("T. Rowe Price") and the Fund (the "Advisory Agreement") for an additional one-year period. Prior to taking this action, the Directors reviewed information relating to the Fund and T. Rowe Price 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 T. Rowe Price's organization, operations, personnel and regulatory and compliance efforts; the services T. Rowe Price provides to the Fund; T. Rowe Price's portfolio management practices; and the performance, fees and expenses of the Fund relative to other comparable high yield (leveraged) closed-end 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 and presentations regarding the Fund and T. Rowe Price provided to the Board and its committees throughout the year.

Based on an evaluation 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 dispositive, and with each Director potentially giving different weight to different factors), the Board 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 T. Rowe Price, the Board reviewed information relating to various aspects of T. Rowe Price'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 Board considered that Rodney M. Rayburn served as the sole portfolio manager for the Fund, and considered the Fund's performance during tenure as the Fund's sole portfolio manager relative to the Fund's performance over longer time periods.

In the course of their deliberations, the Board also evaluated, among other things: (a) the nature, extent, and quality of services rendered by T. Rowe Price in prior years; (b) T. Rowe Price's financial condition and its ability to devote the resources necessary to provide the services required under the Advisory Agreement; and (c) T. Rowe Price's dedication to maintaining appropriate compliance programs with respect to the Fund. In evaluating the nature, extent, and quality of services rendered by T. Rowe Price, the Board also took into account information concerning the Fund's closed-end structure, as well as the Fund's market prices, net asset values, trading volume data, distribution rates, and other matters relevant to Fund shareholders.


50


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information
(Unaudited)

After consideration of the foregoing, the Board concluded that: (1) T. Rowe Price is a large, well-capitalized organization with substantial resources and personnel; (2) T. Rowe Price possesses the capability and resources to perform the duties required of it under the Advisory Agreement; (3) T. Rowe Price's personnel are qualified to manage the Fund's assets in accordance with its investment objectives, strategies, and policies; (4) T. Rowe Price's disciplined, but flexible, investment approach in managing high yield investments is appropriate for the Fund; (5) T. Rowe Price has demonstrated an appropriate awareness of the special requirements associated with the Fund's closed-end, leveraged structure; and (6) T. Rowe Price 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 other comparable high yield (leveraged) closed-end funds ("performance universe"); (b) a composite designed to present the aggregate investment results for the other high yield debt account mandates managed by T. Rowe Price; and (c) various third-party indices tracking the high yield debt market. The Board considered that the Fund's annualized performance relative to its performance universe for periods ended August 31, 2021 was: (i) in the second quintile of its performance universe for the ten-year period; (ii) in the third quintile of its performance universe for the five- and three-year periods; and (iii) in the fourth quintile of its performance universe for the one-year and year-to-date periods.

In considering the Fund's short- and long-term performance, the Board noted the relative market conditions during certain of the relevant performance periods. The Board also took note of the Fund's security selection within the high yield debt and bank loan markets, including among different credit qualities, T. Rowe Price's responsiveness to the Board's emphasis on maintaining dividend stability, and the limitations imposed on portfolio management by the asset coverage requirements imposed by the Fund's credit facility.

On the basis of this evaluation, among other considerations associated with the Fund's performance, and the Board's ongoing review of investment results, the Board concluded that the Fund's performance has been adequate, 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 T. Rowe Price under the Advisory Agreement, the Board reviewed comparative information presented in the report of an independent data provider relating to the fees paid by a peer group of other comparable high yield (leveraged) closed-end funds. The Board considered, based on this data, that the Fund has the lowest contractual and effective advisory fee rates among its peers. The Board also considered the fees paid by the Fund for non-advisory services, as well as the Fund's total expense ratio relative to comparable funds. In addition, the Board reviewed the fees charged by T. Rowe Price to other registered funds and institutional separate accounts with a high yield debt mandate comparable to the Fund's. The Board concluded that, after considering the foregoing information and in light of the nature, extent, and quality of the services provided by T. Rowe Price, the Fund's advisory fee is reasonable.

Profitability. In considering the continuation of the Advisory Agreement, the Board considered information provided by T. Rowe Price with respect to the profitability of its investment advisory business, while acknowledging T. Rowe Price's representations as to the difficulty of measuring the specific profitability to T. Rowe Price of its relationship with the Fund. The Board took into account that T. Rowe Price's initial selection by the Fund's Board was the


51


The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information
(Unaudited)

result of an arm's-length negotiation through a competitive process that included other investment management firms, and that each annual continuation of the Advisory Agreement was likewise the result of an arm's-length negotiation 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 T. Rowe Price 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 T. Rowe Price, the Board concluded that the profits realized by T. Rowe Price are not unreasonable.

Fallout Benefits. On the basis of information provided by T. Rowe Price and the other factors noted above, the Board concluded that T. Rowe Price 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 Board 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 Board considered the extent to which T. Rowe Price, on the one hand, and the Fund, on the other hand, could 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 Board concluded that the structure of the advisory fee, which includes breakpoints at several asset levels, would allow the Fund to continue to benefit from economies of scale in the future.


52


The New America High Income Fund, Inc.

Directors

Joseph L. Bower
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


53


The New America High Income Fund, Inc.

Information About the Fund's Directors and Officers — February 10, 2022

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 Inc. 1992-June 2021; Brown Shoe 1982-2012; and Loews Corporation (a conglomerate) since 2002. Life Trustee of New England Conservatory of Music.

 
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) 2014-June 2021; 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 Operating Officer, North Country Growers, LLC (controlled environment agriculture) since 2018; 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 (42 funds).

 


54


The New America High Income Fund, Inc.

Information About the Fund's Directors and Officers — February 10, 2022 — 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.


55


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.


56


American Stock Transfer & Trust Company
6201 15th Avenue
Brooklyn, NY 11219

The New
America
High Income
Fund, Inc.

Annual

Report

December 31, 2021


 

 

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, 2021 and December 31, 2020. 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 2021, the aggregate fees billed by Tait, Weller in connection with the audit of the Fund’s 2021 financial statements and review of the 2021 semi-annual financial statements totaled $52,550. Those fees for fiscal 2020 were $52,200.

 

Audit-Related Fees. In fiscal 2021 and fiscal 2020, 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 2021, 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 $8,450. For fiscal 2020 those fees were $8,300.

 

All Other Fees. Tait Weller did not bill for any products or services except as noted above, in fiscal 2021 or 2020.

 

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 2021 or 2020.

 

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. 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 CERTAIN OF ITS INVESTMENT ADVISER AFFILIATES

 

PROXY VOTING POLICIES AND PROCEDURES

 

RESPONSIBILITY TO VOTE PROXIES

 

T. Rowe Price Associates, Inc. and certain of its investment adviser affiliates1 (collectively, “T. Rowe Price”) have adopted these Proxy Voting Policies and Procedures (“Policies and Procedures”) for the purpose of establishing formal policies and procedures for performing and documenting their fiduciary duty with regard to the voting of client proxies. This document is reviewed at least annually and updated as necessary.

 

T. Rowe Price recognizes and adheres 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.

 

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 providers and – most importantly – our investment professionals’ views in making voting decisions. T. Rowe Price investment personnel do not coordinate with investment personnel of its affiliated investment adviser, TRPIM, with respect to proxy voting decisions.

 

 

1 This document is not applicable to T. Rowe Price Investment Management, Inc. (“TRPIM”). TRPIM votes proxies independently from the other T. Rowe Price-related investment advisers and has adopted its own proxy voting policy.

 

 

 

 

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 of voting outweighs 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 (“TRPA ESG Committee”) is responsible for establishing positions with respect to corporate governance and other proxy issues. Certain delegated members of the TRPA ESG Committee also review questions and respond to inquiries from clients and mutual fund shareholders pertaining to proxy issues. While the TRPA 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 TRPA 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.

 

Governance Team. Our 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.

 

Responsible Investment Team. Our Responsible Investment team oversees the integration of environmental and social factors into our investment processes across asset classes. In formulating vote recommendations for matters of an environmental or social nature, the Governance team frequently consults with the appropriate sector analyst from the Responsible Investment team.

 

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. Services provided by ISS do not include automated processing of votes on our behalf using the ISS Benchmark Policy recommendations. Instead, in order to reflect T. Rowe Price’s issue-by-issue voting guidelines as approved each year by the TRPA ESG Committee, ISS maintains and implements custom voting policies 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 our clients’ 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 TRPA ESG Committee. Others review the customized vote recommendations and approve them before the votes are cast. Portfolio managers have access to 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 TRPA 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/esgpolicy.

 

Global Portfolio Companies

 

The TRPA 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 a single set of policies is 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 TRPA 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 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 TRPA 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 TRPA 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 TRPA 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 TRPA 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 TRPA 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 TRPA 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 TRPA 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.2

 

 

2 The FRB Relief and the process for voting of Excess Shares described herein apply to the aggregate beneficial ownership of T. Rowe Price and TRPIM.

 

 

 

 

REPORTING, RECORD RETENTION AND OVERSIGHT

 

The TRPA ESG Committee, and certain personnel under the direction of the TRPA 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, TRPA 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.

 

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: 5 $11,389 million 
   other pooled investment vehicles: 2 $4,748 million 
   other accounts: 0 $0 

 

As of 12/31/2021.

 

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.

 

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. T. Rowe Price and its affiliates pay Morningstar for a variety of products and services. Morningstar may provide investment consulting and investment management services to clients of T. Rowe Price or its affiliates. The T. Rowe Price Funds may generally not purchase shares of stock issued by T. Rowe Price Group, Inc. However, a T. Rowe Price Index Fund is permitted to make such purchases to the extent T. Rowe Price Group, Inc. is represented in the benchmark index the fund is designed to track.

 

Additional potential conflicts may be inherent in our use of multiple strategies. For example, conflicts will arise in cases where different clients invest in different parts of an issuer’s capital structure, including circumstances in which one or more clients may own securities or obligations of an issuer and other clients may own or seek to acquire securities of the same issuer that may be in different parts of the issuer’s capital structure. For example, a client may acquire a loan, loan participation or a loan assignment of a particular borrower in which one or more other clients have an equity investment or may invest in senior debt obligations of an issuer for one client and junior debt obligations or equity of the same issuer for another client. While it is appropriate for different clients to hold investments in different parts of the same issuer’s capital structure under normal circumstances, the interests of stockholders and debt holders may conflict, for example when an issuer is in a distressed financial condition, involved in a merger or acquisition, or a going-private transaction, among other situations. In these situations, investment personnel are mindful of potentially conflicting interests of our clients with investments in different parts of an issuer’s capital structure and take appropriate measures to ensure that the interests of all clients are fairly represented.

 

 

 

 

Item 8(a)(3)

 

Portfolio Manager 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, Price International, and T. Rowe Price Investment Management, 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, can 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 Over $100,000

 

 

* As of 12/31/2021.

 

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 8, 2022

 

 

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 8, 2022

 

 

 By:/s/ Ellen E. Terry
 Name:Ellen E. Terry
 Title:Treasurer
 Date:March 8, 2022