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UNITED STATES

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SECURITIES AND EXCHANGE COMMISSION

 

 

Washington, D.C. 20549

 

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-5399

 

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 St., 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:

12/31

 

 

Date of reporting period:

1/1/16 - 6/30/16

 

 

Form N-CSR is to be used by management investment companies to file  reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders  under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may use the information provided on Form N-CSR in its  regulatory, disclosure review, inspection, and policymaking roles.

 

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contained in this form are not required to respond unless the

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Item 1.           Report to Stockholders

 



August 11, 2016

Dear Shareholder,

We are pleased to report to our shareholders on the results of The New America High Income Fund (the "Fund") for the six months ended June 30, 2016. The Fund's net asset value (the "NAV") was $9.45 as of June 30th. The market price for the Fund's shares ended the period at $8.55, representing a market price discount of 9.5%. During the period the Fund paid regular monthly dividends of $.06 per share. The annualized dividend yield on a share of common stock purchased at the year-end 2015 price of $7.66 was 9.4%.

During the first six months of the year, the Fund adjusted the amount of its cash position and leverage in response to volatile market conditions. In January, the Fund increased its leverage by $10 million (from $80 million to $90 million), consistent with the view expressed by the Fund's investment advisor that turmoil in the high yield bond market would present buying opportunities for the Fund. The draw-down of cash from the Fund's credit facility (the "Facility") proved to be well-timed as weakness in the market early in the period allowed the Fund to add to positions at attractive prices. However, later in the period the Fund raised cash and reduced the amount of its leverage due to concern about potential adverse market reaction to the pending United Kingdom referendum on continued membership in the European Union (commonly referred to as the "Brexit" vote).

As of June 30th, the Fund had borrowed $76 million through its Facility with the Bank of Nova Scotia. Amounts borrowed under the Facility bear interest at an adjustable rate based on a margin above LIBOR. The interest rate on the Facility at the end of the period was 1.35%, an attractive spread relative to the 7.18% market value-weighted average current yield on the Fund's portfolio on June 30th. The Fund's leverage contributed approximately 25% of the common stock dividend year-to-date. An increase in the cost of the leverage or reduction in the portfolio's yield will reduce the spread and may reduce the income available for the common dividend.

We remind shareholders that there is no certainty that the dividend will remain at the current level. The dividend can be affected by portfolio results, the cost and amount of leverage, market conditions, the extent to which the portfolio is fully invested and operating expenses, among other factors. Leverage magnifies the effect of price movements on the net asset value. The Fund's leverage has increased the Fund's total return in the recent period of positive high yield market performance. Of course the opposite would be true in an unfavorable high yield market.

The Fund's investment advisor discusses in detail below the numerous challenges investors face from political and economic events in the United States and around the world. Bond market investors have been paying close attention to signals from the Federal Reserve concerning when the next increase in interest rates may occur. Fixed income markets have recently experienced increased volatility due, in part, to investors' concerns about the impact of increased interest rates on the prices of fixed income instruments.

Interest rate risk is one of the risks faced by the Fund's shareholders. However, bonds of different quality and varying maturities react differently to changing rates. Duration is a measure of the sensitivity of a bond's price to a change in rates. Duration takes into account a bond's maturity and coupon. A relatively short maturity shortens duration as does a relatively high coupon. A short bond duration indicates less price sensitivity to changes in interest rates. High yield bonds have relatively lower durations compared to investment grade bonds, resulting in less price volatility in changing rate environments, although high yield bonds are more sensitive to credit risk than investment grade bonds, resulting in greater price volatility in changing economic conditions. It is also noteworthy that a change in Fed policy to higher interest rates indicates confidence in the strength of the U.S. economy. In general, a stable to improving economy is beneficial to high yield companies.


1



 

Total Returns for the Periods Ending June 30, 2016

 

 

1 Year

 

3 Years Cumulative

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

7.38

%

   

11.80

%

 
New America High Income Fund
(NAV and Dividends)*
   

2.14

%

   

20.34

%

 

Credit Suisse High Yield Index

   

1.03

%

   

12.23

%

 

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

Past performance is no guarantee of future results.

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

*  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Distributions are assumed to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Because the Fund's shares may trade at either a discount or premium to the Fund's net asset value per share, returns based upon the stock price and dividends will tend to differ from those derived from the underlying change in net asset value and dividends.

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

High yield bonds posted impressive gains of 9.3% during the first six months of the year as measured by the Credit Suisse High Yield Index (the "Index"). Through mid-February, the high yield market was adversely affected by the pronounced weakness in commodity-related sectors and lower quality issues; this was followed by a dramatic rally in below investment-grade bonds as risk aversion subsided. The price of oil continued its outsized impact on the largest sector in the Index, energy, which represents almost 16% of the high yield market. After falling to $26 per barrel in February, oil rose to more than $50 per barrel amid reports of supply disruptions and lower U.S. crude inventories. The high yield energy sector returned over 20% during the six-months ended June 30. The average yield spread-to-worst for the Index compared to U.S. Treasuries tightened by 79 basis points over the prior six months and finished the period at 674 basis points. As of June 30, the yield-to-worst on the Index was a relatively compelling 7.73% in the low global yield environment.

Early in the year, the high yield market struggled amid investors' concerns over slowing growth in China and marked equity volatility. However, a relatively dovish central bank policy narrative and stronger economic figures for the U.S. decreased early-year apprehensions over the possibility of a U.S. recession. Market disruptions, most notably in June around the U.K. referendum to exit the European Union—the so-called "Brexit" vote—were largely short-lived. The surprise "Brexit" result renewed concerns over slowing global growth and lowered expectations for any near-term Fed rate actions. Against this backdrop, U.S. Treasuries rallied and the 10-year Treasury bond yield declined to levels not seen in four years.

According to J.P. Morgan, more than $155 billion of new issues came to market over the past six months, with roughly two-thirds of that volume coming in the second quarter. The use of proceeds for refinancing increased quarter-over-quarter as falling rates and a more favorable environment encouraged issuers to come to the market. Mutual fund cash inflows over the first quarter were followed by outflows in the second, as investors took advantage of the market rally to take profits amid renewed uncertainty.

High yield issuer defaults in the first half of 2016 have surpassed 2015's total default volume. Commodity companies have accounted for 83% of year-to-date bankruptcies. Through June 30, 20 energy companies have defaulted on


2



$29 billion of debt and four metals and mining issuers have defaulted on almost $8 billion of debt. Nearly 13% of high yield energy companies and 17% of metals and mining issuers have defaulted during the year ended June 30. Consequently, the J.P. Morgan par-weighted trailing 12 month default rate increased over the period to 3.56% in June from 1.80% as of December. Market strategists expect to see more bankruptcies in these industries and the high yield default rate to remain elevated above the 20-year average of 3.1%

Portfolio Review

The portfolio was underweighted in energy compared with the Index. However, during the period the exposure to energy was increased through the addition of relatively higher quality credits. Purchases included BB-rated Concho Resources and Cheniere Corporation. We purposely avoided distressed and restructured names that drove the market rally in the period. Similarly, the portfolio was underweight in metals and mining compared with the Index, which hurt the portfolio's performance relative to the Index. We believe commodity-related companies face a number of headwinds and the substantial risk-on rally this year has been somewhat detached from the underlying fundamentals of the issuers.

An overweight allocation to media and telecom also hurt performance relative to the Index, although this was partially offset by our security selection within the industry. Cable is a relatively defensive sector which lagged the broad market in what was a strong positive environment, however, several of our high conviction positions such as Altice and Charter Communications outperformed.

Performance benefited from credit selection in the information technology sector, partly due to our position in Blue Coat, a leading manufacturer of on-premises security systems. The company has adapted to the growing use of cloud storage, and we anticipate continued expansion of its business. Security selection in the manufacturing sector also contributed positively to performance. Apex Tool, a leading tool manufacturer, is beginning to realize the benefits of cost reductions and restructuring undertaken in recent years. The position in Milacron, a leading manufacturer of systems used in the plastic technology and processing industry, also contributed positively to results. The company reported significantly improved year-over-year first quarter results on the back of strong demand for its products in a number of markets.

Outlook

Eight years after the global financial crisis, weakening corporate profitability, creeping leverage and increased idiosyncratic risks are indicative of an aging high yield credit cycle. Ongoing macro factors, geopolitical developments and negative headlines—all in plentiful supply—will continue to cause volatility in risk assets, including high yield bonds. We believe energy and metals issuers may continue to keep the high yield market default rate elevated for the remainder of this year and into 2017. Market valuations of non-commodity issues are relatively unattractive. Today's high yield market trading and liquidity conditions are more challenging in all market environments as a result of new rules and regulations that dissuade broker-dealers from taking on risk and maintaining inventories.

While the market backdrop outlined above is cause for concern, the support provided to the market by investors' demand for income is considerable. Yields on government bonds in many developed countries are negative and U.S. Treasury yields returned to historic low levels late in the period. If demand for income continues and the U.S.


3



economy remains in a slow, albeit positive, growth trajectory, high yield issuers may continue to have access to capital markets to refinance and service debt, investors will lend and the credit cycle will lumber along. In addition, the recent rally in oil and natural gas prices may have pushed off several defaults for at least six months and that high yield energy defaults may be lower in 2017 than in 2016. However, a global recession resulting from "Brexit" or another macro influence—not our base case—would derail this thesis.

As always, we aim to deliver high current income while seeking to contain 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.
  Mark Vaselkiv
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
June 30, 2016 (Unaudited)
  As a Percent of
Total Investments*
 

Energy

   

14.73

%

 

Cable Operators

   

11.85

%

 

Financial

   

8.69

%

 

Health Care

   

6.36

%

 

Services

   

5.89

%

 

Metals & Mining

   

5.11

%

 

Wireless Communications

   

4.69

%

 

Information Technology

   

4.67

%

 

Container

   

3.44

%

 

Gaming

   

3.42

%

 

Broadcasting

   

2.99

%

 

Utilities

   

2.81

%

 

Chemicals

   

2.03

%

 

Manufacturing

   

1.94

%

 

Automotive

   

1.84

%

 

Other Telecommunications

   

1.76

%

 

Building & Real Estate

   

1.76

%

 

Retail

   

1.71

%

 

Building Products

   

1.54

%

 

Aerospace & Defense

   

1.46

%

 

Supermarkets

   

1.46

%

 

Food/Tobacco

   

1.43

%

 

Airlines

   

1.38

%

 

Publishing

   

1.21

%

 

Consumer Products

   

1.15

%

 

Forest Products

   

1.07

%

 

Satellites

   

0.97

%

 

Entertainment & Leisure

   

0.81

%

 

Lodging

   

0.76

%

 

Restaurants

   

0.68

%

 

Transportation

   

0.30

%

 

Real Estate Investment Trust Securities

   

0.09

%

 

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 1.32 times.

Moody's Investors Service Ratings (1)
June 30, 2016 (Unaudited)
  As a Percent of
Total Investments
 

Baa3

   

1.48

%

 

Total Baa

 

Ba1

   

5.06

%

 

Ba2

   

9.09

%

 

Ba3

   

12.78

%

 

Total Ba

   

26.93

%

 

B1

   

16.13

%

 

B2

   

12.22

%

 

B3

   

18.20

%

 

Total B

   

46.55

%

 

Caa1

   

13.53

%

 

Caa2

   

5.98

%

 

Caa3

   

0.43

%

 

Total Caa

   

19.94

%

 

Ca

   

0.03

%

 

C

   

0.10

%

 

Unrated

   

3.45

%

 

Equity

   

1.52

%

 

Total Investments

   

100.00

%

 

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


5




The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — 129.49% (d)(f)

 

Aerospace & Defense — 1.93%

 

$

2,075

    Bombardier, Inc., Senior Notes,
7.50%, 03/15/18 (g)
 

B3

 

$

2,145

   
 

425

    Huntington Ingalls Industries,
Senior Notes,
5%, 11/15/25 (g)
 

Ba2

   

449

   
 

900

    Standard Aero Aviation Holdings Inc.,
Senior Notes,
10%, 07/15/23 (g)
 

Caa2

   

902

   
 

100

    Transdigm, Inc., Senior
Subordinated Notes,
6.375%, 6/15/26 (g)
 

B3

   

100

   
 

350

    Transdigm, Inc., Senior
Subordinated Notes,
6.50%, 07/15/24
 

B3

   

353

   
 

300

    Transdigm, Inc., Senior
Subordinated Notes,
6.50%, 05/15/25
 

B3

   

300

   
     

4,249

   

Airlines — 1.82%

 
 

100

    Air Canada, Senior Notes,
6.75%, 10/01/19 (g)
 

Ba3

   

102

   
 

1,100

    American Airlines Group,
Senior Notes,
5.50%, 10/01/19 (g)
 

B1

   

1,089

   
 

120

    American Airlines Group,
Senior Notes,
5.625%, 01/15/21 (g)
 

(e)

   

123

   
 

1,325

    American Airlines Group,
Senior Notes,
6.125%, 06/01/18
 

B1

   

1,375

   
 

124

    United Airlines, Senior Notes,
4.625%, 03/03/24
 

(e)

   

123

   
 

575

    United Continental Holdings, Inc.,
Senior Notes,
6%, 12/01/20
 

B1

   

601

   
 

575

    United Continental Holdings, Inc.,
Senior Notes,
6.375%, 06/01/18
 

B1

   

604

   
     

4,017

   

Automotive — 2.43%

 
 

350

    Group 1 Automotive, Inc.,
Senior Notes,
5%, 06/01/22
 

Ba2

   

344

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

$

275

    Group 1 Automotive, Inc.,
Senior Notes,
5.25%, 12/15/23 (g)
 

Ba2

 

$

272

   
 

1,025

    Jaguar Land Rover Automotive Plc,
Senior Notes,
5.625%, 02/01/23 (g)
 

Ba2

   

1,061

   
 

825

    MPG Holdco Inc., Senior Notes,
7.375%, 10/15/22
 

B3

   

817

   
 

575

    Penske Auto Group, Inc., Senior
Subordinated Notes,
5,50%, 5/15/26
 

B1

   

546

   
 

400

    Penske Auto Group, Inc., Senior
Subordinated Notes,
5.75%, 10/01/22
 

B1

   

400

   
 

525

    Sonic Automotive, Inc., Senior
Subordinated Notes,
5%, 05/15/23
 

B2

   

515

   
 

100

    Sonic Automotive, Inc., Senior
Subordinated Notes,
7%, 07/15/22
 

B2

   

105

   
 

1,325

    TI Group Auto Systems, L.L.C.,
Senior Notes,
8.75%, 07/15/23 (g)
 

Caa1

   

1,299

   
     

5,359

   

Broadcasting — 3.94%

 
 

1,075

    AMC Networks, Inc., Senior Notes,
4.75%, 12/15/22
 

Ba3

   

1,064

   
 

600

    Clear Channel Worldwide Holdings,
Inc., Senior Notes,
6.50%, 11/15/22
 

B2

   

597

   
 

450

    Lamar Media Corporation, Senior
Subordinated Notes,
5.875%, 02/01/22
 

Ba3

   

468

   
 

475

    Lin Television Corporation,
Senior Notes,
5.875%, 11/15/22
 

B3

   

477

   
 

1,700

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

B3

   

1,691

   
 

725

    Outfront Media Capital LLC,
Senior Notes,
5.25%, 02/15/22
 

B1

   

734

   
 

250

    Outfront Media Capital LLC,
Senior Notes,
5.625%, 02/15/24
 

B1

   

257

   
 

250

    Sinclair Television Group, Inc.,
Senior Notes,
5.875%, 3/15/26 (g)
 

B1

   

257

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

800

    Sirius XM Radio, Inc., Senior Notes,
6%, 07/15/24 (g)
 

Ba3

 

$

827

   
 

725

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

B3

   

716

   
 

825

    Tribune Media Company,
Senior Notes,
5.875%, 07/15/22
 

B2

   

821

   
 

475

    Univision Communications, Inc.,
Senior Notes,
5.125%, 02/15/25 (g)
 

B2

   

469

   
 

300

    Univision Communications, Inc.,
Senior Notes,
6.75%, 09/15/22 (g)
 

B2

   

316

   
     

8,694

   

Building & Real Estate — 2.15%

 
 

325

    CCRE Company, Senior Notes,
7.75%, 02/15/18 (g)
 

B1

   

314

   
 

525

    Greystar Real Estate Partners, LLC,
Senior Notes,
8.25%, 12/01/22 (g)
 

B2

   

539

   
 

750

    Howard Hughes Corporation,
Senior Notes,
6.875%, 10/01/21 (g)
 

Ba3

   

761

   
 

325

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

Ba3

   

290

   
 

550

    RPG Byty s.r.o., Senior Notes,
6.75%, 05/01/20 (g) (EUR)
 

Ba2

   

626

   
 

350

    Shea Homes Limited Partnership,
Senior Notes,
5.875%, 04/01/23 (g)
 

B2

   

350

   
 

425

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

B2

   

427

   
 

675

    William Lyon Homes, Inc.,
Senior Notes,
7%, 08/15/22
 

B3

   

675

   
 

750

    William Lyon Homes, Inc.,
Senior Notes,
8.50%, 11/15/20
 

B3

   

776

   
     

4,758

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

Building Products — 2.02%

 

$

250

    ABC Supply Company, Inc.,
Senior Notes,
5.75%, 12/15/23 (g)
 

B3

 

$

258

   
 

519

    Builders First Source, Inc.,
Senior Notes,
7.625%, 06/01/21 (g)
 

B3

   

545

   
 

825

    Cemex Finance LLC, Senior Notes,
9.375%, 10/12/22 (g)
   

(e)

     

904

   
 

550

    LSF9 Balta Issuer, S.A.,
Senior Notes,
7.75%, 09/15/22 (EUR)
 

B2

   

642

   
 

275

    Masonite International Corporation,
Senior Notes,
5.625%, 03/15/23 (g)
 

B1

   

286

   
 

750

    Reliance Intermediate Holdings L.P.,
Senior Notes,
6.50%, 04/01/23 (g)
 

B1

   

782

   
 

750

    RSI Home Products, Inc.,
Senior Notes,
6.50%, 03/15/23 (g)
 

B1

   

770

   
 

275

    Springs Industries, Inc.,
Senior Notes,
6.25%, 06/01/21
 

B2

   

276

   
     

4,463

   

Cable Operators — 15.44%

 
 

375

    Altice Financing S.A., Senior Notes,
6.625%, 02/15/23 (g)
 

B1

   

369

   
 

775

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

B1

   

758

   
 

900

    Altice Financing S.A., Senior Notes,
8.125%, 01/15/24 (g)
 

B3

   

880

   
 

1,100

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

B3

   

1,075

   
 

2,175

    Altice Luxembourg S.A.,
Senior Notes,
7.75%, 05/15/22 (g)
 

B3

   

2,197

   
 

425

    B Communications Ltd.,
Senior Notes,
7.375%, 02/15/21 (g)
 

(e)

   

454

   
 

300

    Cable One, Inc., Senior Notes,
5.75%, 06/15/22 (g)
 

B1

   

307

   
 

425

    CCO Holdings, LLC, Senior Notes,
5.75%, 09/01/23
 

B1

   

439

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

575

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

B1

 

$

587

   
 

1,225

    CCO Holdings, LLC, Senior Notes,
5.75%, 01/15/24
 

B1

   

1,280

   
 

700

    CCO Holdings, LLC, Senior Notes,
6.625%, 01/31/22
 

B1

   

737

   
 

500

    Cequel Communications Holdings I,
LLC, Senior Notes,
5.125%, 12/15/21 (g)
 

Caa1

   

476

   
 

2,275

    Cequel Communications Holdings I,
LLC, Senior Notes,
6.375%, 09/15/20 (g)
 

Caa1

   

2,301

   
 

1,000

    Cequel Communications Holdings I,
LLC, Senior Notes,
7.75%, 07/15/25 (g)
 

Caa1

   

1,041

   
 

600

    Charter Communications LLC,
Senior Notes,
6.384%, 10/23/35 (g)
 

Ba1

   

708

   
 

600

    Charter Communications LLC,
Senior Notes,
6.484%, 10/23/45 (g)
 

Ba1

   

716

   
 

525

    Dish DBS Corporation,
Senior Notes,
5.875%, 07/15/22
 

Ba3

   

511

   
 

1,125

    Dish DBS Corporation,
Senior Notes,
6.75%, 06/01/21
 

Ba3

   

1,167

   
 

275

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

Ba3

   

283

   
 

550

    LGE Holdco VI B.V., Senior Notes,
7.125%, 05/15/24 (g) (EUR)
 

B2

   

673

   
 

3,550

    Neptune Finco Corporation,
Senior Notes,
10.125%, 01/15/23 (g)
 

B2

   

3,967

   
 

1,050

    Neptune Finco Corporation,
Senior Notes,
10.875%, 10/15/25 (g)
 

B2

   

1,192

   
 

175

    Netflix, Inc., Senior Notes,
5.75%, 03/01/24
 

B1

   

182

   
 

700

    Numericable Group, S.A.,
Senior Notes,
6.25%, 05/15/24 (g)
 

B1

   

665

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

$

900

    Numericable Group, S.A.,
Senior Notes,
7.375%, 05/01/26 (g)
 

B1

 

$

887

   
 

120

    Time Warner Cable Inc.,
Senior Notes,
6.55%, 05/01/37
 

Ba1

   

140

   
 

67

    Time Warner Cable Inc.,
Senior Notes,
6.75%, 06/15/39
 

Ba1

   

80

   
 

100

    Time Warner Cable Inc.,
Senior Notes,
7.30%, 07/01/38
 

Ba1

   

126

   
 

525

    United Group BV, Senior Notes,
7.875%, 11/15/20 (g) (EUR)
 

B2

   

611

   
 

825

    United Group BV, Senior Notes,
7.875%, 11/15/20 (EUR)
 

B2

   

961

   
 

900

    Unitymedia Hessen GmbH &
Company, Senior Notes,
5%, 01/15/25 (g)
 

Ba3

   

907

   
 

1,975

    Unitymedia Kabel BW GmbH,
Senior Notes,
6.125%, 01/15/25 (g)
 

B3

   

1,985

   
 

575

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

Ba2

   

595

   
 

375

    Virgin Media Finance, Plc,
Senior Notes,
6%, 10/15/24 (g)
 

B2

   

367

   
 

650

    Virgin Media Finance, Plc,
Senior Notes,
6.375%, 04/15/23 (g)
 

B2

   

653

   
 

325

    Virgin Media Secured Finance, Plc,
Senior Notes,
5.25%, 01/15/26 (g)
 

Ba3

   

315

   
 

550

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

Ba3

   

536

   
 

100

    Virgin Media Secured Finance, Plc,
Senior Notes,
6.25%, 03/28/29 (GBP)
 

Ba3

   

131

   
 

700

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

B1

   

697

   
 

710

    WideOpenWest Finance, LLC,
Senior Notes,
10.25%, 07/15/19
 

Caa1

   

734

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

975

    WideOpenWest Finance, LLC,
Senior Subordinated Notes,
13.375%, 10/15/19
 

Caa1

 

$

1,038

   
 

375

    Ziggo Bond Finance BV,
Senior Notes,
5.875%, 01/15/25 (g)
 

B2

   

360

   
     

34,088

   

Chemicals — 2.68%

 
 

990

    Consolidated Energy Finance,
Senior Notes,
6.75%, 10/15/19 (g)
 

B2

   

936

   
 

450

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

B1

   

458

   
 

475

    W.R. Grace & Company Conn.,
Senior Notes,
5.125%, 10/01/21 (g)
 

Ba3

   

488

   
 

1,425

    Hexion Specialty Chemicals, Inc.,
Senior Notes,
6.625%, 04/15/20
 

B3

   

1,190

   
 

250

    Hexion Specialty Chemicals, Inc.,
Senior Notes,
10%, 04/15/20
 

B3

   

235

   
 

75

    Huntsman International,
Senior Notes,
4.875%, 11/15/20
 

B1

   

76

   
 

350

    Ineos Group Holdings S.A.,
Senior Notes,
6.125%, 08/15/18 (g)
 

B3

   

353

   
 

475

    Platform Specialty Products
Corporation, Senior Notes,
6.50%, 02/01/22 (g)
 

Caa1

   

418

   
 

475

    Platform Specialty Products
Corporation, Senior Notes,
10.375%, 05/01/21 (g)
 

Caa1

   

479

   
 

350

    PQ Corporation, Senior Notes,
6.75%, 11/15/22 (g)
 

B2

   

364

   
 

925

    Univar, Inc., Senior Notes,
6.75%, 07/15/23 (g)
 

Caa1

   

912

   
     

5,909

   

Consumer Products — 1.52%

 
 

575

    24 Hour Holdings III LLC,
Senior Notes,
8%, 06/01/22 (g)
 

Caa1

   

434

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

$

150

    Boardriders, S.A., Senior Notes,
9.50%, 12/15/20 (g) (EUR)
 

Caa1

 

$

128

   
 

300

    Central Garden and Pet Company,
Senior Notes,
6.125%, 11/15/23
 

B2

   

311

   
 

650

    Energizer Spinco, Inc., Senior Notes,
5.50%, 06/15/25 (g)
 

Ba3

   

646

   
 

675

    Lifetime Fitness, Inc., Senior Notes,
8.50%, 06/15/23 (g)
 

Caa1

   

640

   
 

400

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

B1

   

394

   
 

400

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

B1

   

412

   
 

375

    Vista Outdoor Inc. Inc, Senior Notes,
5.875%, 10/01/23 (g)
 

Ba3

   

391

   
     

3,356

   

Container — 4.53%

 
 

425

    AEP Industries, Inc., Senior Notes,
8.25%, 04/15/19
 

B3

   

433

   
 

200

    Ardagh Packaging Finance plc,
Senior Notes,
6%, 06/30/21 (g)
 

B3

   

197

   
 

400

    Ardagh Packaging Finance plc,
Senior Notes,
6.75%, 01/31/21 (g)
 

B3

   

403

   
 

575

    Ardagh Packaging Finance plc,
Senior Notes,
7.25%, 5/15/24 (g)
 

B3

   

588

   
 

787

    Ardagh Finance Holdings S.A.,
Senior Notes,
8.375%, 06/15/19 (g)(h) (EUR)
 

Caa2

   

891

   
 

1,286

    Ardagh Finance Holdings S.A.,
Senior Notes,
8.625%, 06/15/19 (g)(h)
 

Caa2

   

1,302

   
 

125

    Ball Corporation, Senior Notes,
4%, 11/15/23
 

Ba1

   

123

   
 

400

    Beverage Packaging Holdings
(Lux) II S.A., Senior Notes,
5.625%, 12/15/16 (g)
 

Caa2

   

401

   
 

275

    Bormioli Rocco Holdings,
Senior Notes,
10%, 08/01/18 (g) (EUR)
 

B3

   

311

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

700

    Consolidated Container Company
LLC, Senior Notes,
10.125%, 07/15/20 (g)
 

Caa3

 

$

634

   
 

100

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

B1

   

110

   
 

325

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

Caa2

   

333

   
 

425

    Reynolds Group Issuer, Inc.,
Senior Notes,
5.75%, 10/15/20
 

B1

   

439

   
 

500

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

Caa2

   

514

   
 

1,600

    Reynolds Group Issuer, Inc.,
Senior Notes,
8.25%, 02/15/21
 

Caa2

   

1,668

   
 

1,425

    SIG Combibloc Holdings,
Senior Notes,
7.75%, 02/15/23 (g) (EUR)
 

Caa1

   

1,662

   
     

10,009

   

Energy — 18.77%

 
 

290

    Alberta Energy Company, Ltd.,
Senior Notes,
7.375%, 11/01/31
 

Ba2

   

289

   
 

120

    Alberta Energy Company, Ltd.,
Senior Notes,
8.125%, 09/15/30
 

Ba2

   

128

   
 

205

    Anadarko Petroleum Company,
Senior Notes,
8.70%, 03/15/19
 

Ba1

   

234

   
 

375

    Archrock Partners, Senior Notes,
6%, 04/01/21
 

B3

   

336

   
 

375

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

B3

   

330

   
 

700

    Cenovus Energy, Inc., Senior Notes,
6.75%, 11/15/39
 

Ba2

   

739

   
 

725

    CGG SA, Senior Notes,
6.875%, 01/15/22
 

Caa2

   

315

   
 

800

    Chenier Corpus Christi Holdings,
LLC, Senior Notes,
7%, 06/30/24 (g)
 

Ba3

   

822

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

$

1,220

    Chesapeake Energy Corp.,
Senior Notes,
8%, 12/15/22 (g)
 

Caa1

 

$

1,039

   
 

125

    Concho Resources, Inc.,
Senior Notes,
5.50%, 10/01/22
 

Ba2

   

126

   
 

1,575

    Concho Resources, Inc.,
Senior Notes,
5.50%, 04/01/23
 

Ba2

   

1,579

   
 

125

    Concho Resources, Inc.,
Senior Notes,
6.50%, 01/15/22
 

Ba2

   

128

   
 

700

    Concho Resources, Inc.,
Senior Notes,
7%, 01/15/21
 

Ba2

   

721

   
 

600

    Continental Resources,
Senior Notes,
4.90%, 06/01/44
 

Ba3

   

500

   
 

825

    CrownRock, L.P., Senior Notes,
7.125%, 04/15/21 (g)
 

B3

   

846

   
 

1,175

    CrownRock, L.P., Senior Notes,
7.75%, 02/15/23 (g)
 

B3

   

1,222

   
 

100

    DCP Midstream Operating LP,
Senior Notes,
5.60%, 04/01/44
 

Ba1

   

84

   
 

300

    DCP Midstream, LLC, Senior Notes,
6.45%, 11/03/36 (g)
 

Ba2

   

258

   
 

100

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

Ba2

   

98

   
 

125

    DCP Midstream, LLC, Senior Notes,
9.75%, 03/15/19 (g)
 

Ba2

   

136

   
 

260

    Devon Energy Corporation,
Senior Notes,
7.95%, 04/15/32
 

Ba2

   

305

   
 

70

    Devon Financing Corporation U.L.C.,
Senior Notes,
7.875%, 09/30/31
 

Ba2

   

81

   
 

890

    Encana Corporation, Senior Notes,
6.50%, 05/15/19
 

Ba2

   

948

   
 

525

    Encana Corporation, Senior Notes,
7.20%, 11/01/31
 

Ba2

   

521

   
 

550

    Energy Transfer Partners, L.P.,
Senior Notes,
9%, 04/15/19
 

Baa3

   

618

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

190

    Energy Transfer Partners, L.P.,
Senior Notes,
9.70%, 03/15/19
 

Baa3

 

$

216

   
 

150

    EQT Corporation, Senior Notes,
8.125%, 06/01/19
 

Baa3

   

165

   
 

550

    Gibson Energy, Inc., Senior Notes,
6.75%, 07/15/21 (g)
 

Ba2

   

549

   
 

645

    Gulfport Energy Corporation,
Senior Notes,
6.625%, 05/01/23
 

B2

   

635

   
 

675

    Gulfport Energy Corporation,
Senior Notes,
7.75%, 11/01/20
 

B2

   

695

   
 

175

    Hess Corporation, Senior Notes,
6%, 01/15/40
 

Ba1

   

181

   
 

70

    Hess Corporation, Senior Notes,
7.125%, 03/15/33
 

Ba1

   

77

   
 

180

    Hess Corporation, Senior Notes,
7.30%, 08/15/31
 

Ba1

   

207

   
 

1,355

    Hess Corporation, Senior Notes,
7.875%, 10/01/29
 

Ba1

   

1,614

   
 

75

    Hess Corporation, Senior Notes,
8.125%, 02/15/19
 

Ba1

   

84

   
 

800

    Kosmos Energy Ltd., Senior Notes,
7.875%, 08/01/21 (g)
 

(e)

   

772

   
 

1,125

    Matador Resources Company,
Senior Notes,
6.875%, 04/15/23
 

B3

   

1,147

   
 

825

    MPLX LP, Senior Notes,
4.50%, 07/15/23 (g)
 

Baa3

   

802

   
 

325

    Newfield Exploration Company,
Senior Notes,
5.375%, 01/01/26
 

Ba3

   

316

   
 

675

    Newfield Exploration Company,
Senior Subordinated Notes,
5.75%, 01/30/22
 

Ba3

   

680

   
 

60

    Noble Energy, Inc., Senior Notes,
8.25%, 03/01/19
 

Baa3

   

69

   
 

75

    Nustar Logistics, L.P., Senior Notes,
4.80%, 09/01/20
 

Ba1

   

73

   
 

1,725

    Pacific Exploration and Production
Corporation, Senior Notes,
5.375%, 01/26/19 (a)(b)(g)
   

(e)

     

319

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

$

825

    Pacific Exploration and Production
Corporation, Senior Notes,
5.625%, 01/19/25 (a)(b)(g)
 

(e)

 

$

153

   
 

270

    Pacific Exploration and Production
Corporation, Senior Notes,
12%, 12/22/17 (b)(i)
 

(e)

   

238

   
 

75

    Parsley Energy LLC, Senior Notes
6.25%, 06/01/24 (g)
 

B3

   

76

   
 

1,075

    Parsley Energy LLC, Senior Notes
7.50%, 2/15/22 (g)
 

B3

   

1,123

   
 

1,550

    Petrobras Global Finance,
Senior Notes,
8.375%, 05/23/21
 

B3

   

1,597

   
 

20

    Pride International,Inc.,
Senior Notes,
6.875%, 08/15/20
 

B1

   

19

   
 

520

    Pride International,Inc.,
Senior Notes,
8.50%, 06/15/19
 

B1

   

533

   
 

125

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

B1

   

115

   
 

325

    QEP Resrouces, Inc., Senior Notes,
6.875%, 03/01/21
 

B1

   

328

   
 

875

    Range Resources Corporaiton,
Senior Subordinated Notes,
4.875%, 05/15/25
 

Ba3

   

833

   
 

175

    Rockies Expres Pipeline LLC,
Senior Notes,
6%, 01/15/19 (g)
 

Ba2

   

179

   
 

730

    Rowan Companies, Inc.,
Senior Notes,
7.875%, 08/01/19
 

B1

   

752

   
 

325

    Sabine Pass LNG, L.P.,
Senior Notes,
5.75%, 05/15/24
 

Ba2

   

323

   
 

175

    Sabine Pass LNG, L.P.,
Senior Notes,
5.875%, 06/30/26 (g)
 

Ba2

   

175

   
 

1,050

    Sabine Pass LNG, L.P.,
Senior Notes,
6.25%, 03/15/22
 

Ba2

   

1,074

   
 

1,725

    SESI, L.L.C., Senior Notes,
7.125%, 12/15/21
 

B2

   

1,660

   
 

550

    Seven Generations Energy Ltd.,
Senior Notes,
6.75%, 05/01/23 (g)
 

B1

   

556

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

2,650

    Seven Generations Energy Ltd.,
Senior Notes,
8.25%, 05/15/20 (g)
 

B1

 

$

2,746

   
 

650

    SM Energy Company, Senior Notes,
6.50%, 01/01/23
 

B3

   

601

   
 

550

    Southwestern Energy Company,
Senior Notes,
4.05%, 01/23/20
 

B1

   

540

   
 

125

    Southwestern Energy Company,
Senior Notes,
4.95%, 01/23/25
 

B1

   

120

   
 

850

    Southwestern Energy Company,
Senior Notes,
7.50%, 02/01/18
 

B1

   

905

   
 

600

    Sunoco L.P., Senior Notes,
6.25%, 04/15/21 (g)
 

Ba3

   

600

   
 

75

    Sunoco L.P., Senior Notes,
6.375%, 04/01/23 (g)
 

Ba3

   

74

   
 

1,450

    Targa Resources Partners L.P.,
Senior Notes,
4.25%, 11/15/23
 

Ba3

   

1,305

   
 

800

    Targa Resources Partners L.P.,
Senior Notes,
5.25%, 05/01/23
 

Ba3

   

758

   
 

675

    Targa Resources Partners L.P.,
Senior Notes,
6.75%, 03/15/24 (g)
 

Ba3

   

692

   
 

175

    Tesoro Logistics, L.P., Senior Notes,
6.125%, 10/15/21
 

Ba3

   

182

   
 

350

    Transocean, Inc., Senior Notes,
6%, 03/15/18
 

B2

   

355

   
 

250

    Transocean, Inc., Senior Notes,
8.125%, 12/15/21
 

B2

   

210

   
 

850

    WPX Energy, Inc., Senior Notes,
7.50%, 08/01/20
 

B3

   

846

   
 

715

    YPF Sociedad Anonima,
Senior Notes,
8.50%, 03/23/21 (g)
 

B3

   

765

   
     

41,437

   

Entertainment & Leisure — 1.06%

 
 

425

    ClubCorp Club Operations, Inc.,
Senior Notes,
8.25%, 12/15/23 (g)
 

B3

   

423

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

$

425

    Entertainment One, Ltd.
Senior Notes,
6.875%, 12/15/22 (g) (GBP)
 

B1

 

$

570

   
 

1,000

    Regal Entertainment Group,
Senior Notes,
5.75%, 03/15/22
 

B3

   

1,025

   
 

322

    WMG Acquisition Corporation,
Senior Notes,
6%, 01/15/21 (g)
 

Ba3

   

332

   
     

2,350

   

Financial — 11.42%

 
 

450

    Aircastle Limited, Senior Notes,
5.50%, 02/15/22
 

Ba1

   

470

   
 

125

    Ally Financial, Inc., Senior Notes,
5.125%, 09/30/24
 

Ba3

   

127

   
 

600

    Ally Financial, Inc., Senior Notes,
5.75%, 11/20/25
 

(e)

   

602

   
 

619

    Ally Financial, Inc., Senior Notes,
7.50%, 09/15/20
 

Ba3

   

693

   
 

625

    Ally Financial, Inc., Senior Notes,
8%, 11/01/31
 

Ba3

   

725

   
 

1,000

    Banco Bilbao Vizcaya Argentina, S.A.,
Senior Notes,
7%, 12/29/49 (EUR)
 

(e)

   

952

   
 

1,000

    Banco Santander S.A., Senior Notes,
6.375%, 05/29/49
 

Ba1

   

860

   
 

1,575

    Citigroup, Inc.
5.95%, 12/29/49
 

Ba2

   

1,528

   
 

300

    Citigroup, Inc.
6.25%, 12/29/49
 

Ba2

   

307

   
 

250

    CNO Financial Group Inc.,
Senior Notes,
5.25%, 05/30/25
 

Ba1

   

258

   
 

950

    Credit Agricole S.A., Senior Notes,
6.625%, 09/29/49 (g)
 

Ba2

   

864

   
 

1,200

    Discover Financial Services,
Senior Notes,
10.25%, 07/15/19
 

Ba1

   

1,427

   
 

300

    Garfunkelux Holdco 3 S.A.,
Senior Notes,
8.50%, 11/01/22 (g) (GBP)
 

B2

   

377

   
 

1,200

    Goldman Sachs Group, Inc.
5.375%, 12/29/49
 

Ba1

   

1,184

   
 

625

    HRG Group, Inc., Senior Notes,
7.875%, 07/15/19
 

Ba3

   

655

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

400

    HSBC Holdings, plc, Senior Notes,
6.875%, 12/29/49
 

Baa3

 

$

400

   
 

750

    Hub Holdings LLC, Senior Notes,
8.125%, 07/15/19 (g)
 

Caa2

   

718

   
 

900

    Hub International Limited,
Senior Notes,
7.875%, 10/01/21 (g)
 

Caa2

   

866

   
 

250

    Hub International Limited,
Senior Notes,
9.25%, 02/15/21 (g)
 

B3

   

261

   
 

650

    Icahn Enterprises, Senior Notes,
4.875%, 03/15/19
 

Ba3

   

637

   
 

450

    Icahn Enterprises, Senior Notes,
6%, 08/01/20
 

Ba3

   

444

   
 

1,650

    Intesa Sanpaolo Spa,
7.70%, 12/29/49 (g)
 

Ba3

   

1,446

   
 

1,465

    JP Morgan Chase & Co.
5.30%, 12/29/49
 

Baa3

   

1,461

   
 

150

    National Financial Partnership,
Senior Notes,
9%, 07/15/21 (g)
 

Caa2

   

145

   
 

875

    Nationstar Mortgage LLC,
Senior Notes,
6.50%, 07/01/21
 

B2

   

753

   
 

225

    Nationstar Mortgage LLC,
Senior Notes,
7.875%, 10/01/20
 

B2

   

210

   
 

675

    Navient Corporation, Senior Notes,
5%, 10/26/20
 

Ba3

   

629

   
 

900

    Ocwen Financial Group,
Senior Notes,
6.625%, 05/15/19
 

Caa1

   

617

   
 

850

    OneMain Financial Holdings, Inc.,
Senior Notes,
7.25%, 12/15/21 (g)
 

B2

   

825

   
 

450

    Provident Funding Associates, L.P.,
Senior Notes,
6.75%, 06/15/21 (g)
 

B1

   

428

   
 

1,125

    Quicken Loans, Inc., Senior Notes,
5.75%, 05/01/25 (g)
 

Ba2

   

1,094

   
 

205

    Royal Bank of Scotland Group, plc,
Subordinated Notes,
6.125%, 12/15/22
 

Ba2

   

213

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

$

675

    Springleaf Finance Corporation,
Senior Notes,
8.25%, 12/15/20
 

B3

 

$

672

   
 

1,100

    USI Inc., Senior Notes,
7.75%, 01/15/21 (g)
 

Caa2

   

1,078

   
 

375

    Walter Investment Management
Corporation, Senior Notes,
7.875%, 12/15/21
 

Caa1

   

185

   
 

1,125

    Wayne Merger Sub, LLC,
Senior Notes,
8.25%, 08/01/23 (g)
 

Caa2

   

1,103

   
     

25,214

   

Food/Tobacco — 1.89%

 
 

750

    Dean Foods Company, Senior Notes,
6.50%, 03/15/23 (g)
 

B2

   

773

   
 

800

    Minerva Luxembourg S.A.,
Senior Notes,
7.75%, 01/31/23 (g)
 

B1

   

814

   
 

675

    Pinnacle Foods Finance, L.L.C.,
Senior Notes,
5.875%, 01/15/24 (g)
 

B2

   

707

   
 

525

    Post Holdings, Inc., Senior Notes,
6.75%, 12/01/21 (g)
 

B3

   

555

   
 

825

    Post Holdings, Inc., Senior Notes,
7.375%, 02/15/22
 

B3

   

867

   
 

425

    Shearers Food, Inc., Senior Notes,
9%, 11/01/19 (g)
 

B1

   

448

   
     

4,164

   

Forest Products — 1.40%

 
 

275

    Cascades, Inc., Senior Notes,
5.50%, 07/15/22 (g)
 

Ba3

   

267

   
 

1,150

    Cascades, Inc., Senior Notes,
5.75%, 07/15/23 (g)
 

Ba3

   

1,113

   
 

325

    Graphic Packaging International,
Inc., Senior Notes,
4.75%, 04/15/21
 

Ba2

   

340

   
 

625

    Mercer International, Inc.,
Senior Notes,
7%, 12/01/19
 

B2

   

623

   
 

350

    Mercer International, Inc.,
Senior Notes,
7.75%, 12/01/22
 

B2

   

350

   
 

400

    Norbord, Inc., Senior Notes,
6.25%, 04/15/23 (g)
 

Ba2

   

409

   
     

3,102

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

Gaming — 4.51%

 

$

550

    Boyd Gaming Corporation,
Senior Notes,
6.375%, 04/01/26 (g)
 

B3

 

$

576

   
 

850

    Cirsa Funding Luxembourg S.A.,
Senior Notes,
5.875%, 05/15/23 (g) (EUR)
 

B2

   

949

   
 

875

    Eldorado Resorts, Inc.,
Senior Notes,
7%, 08/01/23
 

Caa1

   

910

   
 

150

    GLP Capital L.P., Senior Notes,
4.375%, 04/15/21
 

Ba1

   

155

   
 

275

    GLP Capital L.P., Senior Notes,
5.375%, 04/15/26
 

Ba1

   

285

   
 

700

    Great Canadian Gaming
Corporation, Senior Notes,
6.625%, 07/25/22 (g) (CAD)
 

B1

   

554

   
 

959

    International Game Technology Plc,
Senior Notes,
6.25%, 02/15/22 (g)
 

Ba2

   

976

   
 

800

    International Game Technology Plc,
Senior Notes,
6.50%, 02/15/25 (g)
 

Ba2

   

804

   
 

425

    Intralot Finance Luxembourg S.A.,
Senior Notes,
9.75%, 08/15/18 (g) (EUR)
 

B1

   

493

   
 

325

    MGM Growth Properties Operating
Partnership L.P., Senior
Notes, 5.625%, 05/01/24 (g)
 

B2

   

342

   
 

600

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

B1

   

633

   
 

925

    MGM Resorts International,
Senior Notes,
6.625%, 12/15/21
 

B1

   

999

   
 

375

    Peninsula Gaming, LLC,
Senior Notes,
8.375%, 02/15/18 (g)
 

Caa1

   

377

   
 

225

    Rivers Pittsburgh Borrower, L.P.,
Senior Notes,
9.50%, 06/15/19 (g)
 

B3

   

231

   
 

275

    Safari Holding Verwaltungs GmbH,
Senior Notes,
8.25%, 02/15/21 (g) (EUR)
 

B2

   

321

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

$

500

    Scientific Games International Inc.,
Senior Notes,
7%, 01/01/22 (g)
 

Ba3

 

$

503

   
 

775

    Shingle Springs Tribal Gaming
Authority, Senior Notes,
9.75%, 09/01/21 (g)
 

B2

   

845

   
     

9,953

   

Health Care — 8.17%

 
 

450

    AMAG Pharmaceuticals, Inc.,
Senior Notes,
7.875%, 09/01/23 (g)
 

B3

   

401

   
 

560

    Capsugel S.A., Senior Notes,
7%, 05/15/19 (g)
 

Caa1

   

562

   
 

275

    Centene Escrow Corporation,
Senior Notes,
5.625%, 02/15/21 (g)
 

Ba2

   

287

   
 

175

    Centene Escrow Corporation,
Senior Notes,
6.125%, 02/15/24 (g)
 

Ba2

   

186

   
 

125

    Concordia Healthcare Corporation,
Senior Notes,
9.50%, 10/21/22 (g)
 

Caa2

   

117

   
 

450

    Crimson Merger, Inc., Senior Notes,
6.625%, 05/15/22 (g)
 

Caa2

   

374

   
 

450

    DPX Holdings BV, Senior Notes,
7.50%, 02/01/22 (g)
 

Caa1

   

458

   
 

725

    Endo Finance LLC, Senior Notes,
6%, 07/15/23 (g)
 

B3

   

638

   
 

575

    Endo Finance LLC, Senior Notes,
6%, 02/01/25 (g)
 

B3

   

499

   
 

150

    HCA, Inc., Senior Notes,
5%, 03/15/24
 

Ba1

   

155

   
 

1,575

    HCA, Inc., Senior Notes,
5.25%, 06/15/26
 

Ba1

   

1,634

   
 

275

    Hill-Rom Holdings, Inc.,
Senior Notes,
5.75%, 09/01/23 (g)
 

B1

   

282

   
 

800

    Iasis Healthcare Capital
8.375%, 05/15/19
 

Caa1

   

768

   
 

1,000

    JLL/Delta Dutch Senior Notes,
8.75%, 05/01/20 (g)
 

Caa2

   

987

   
 

625

    Kindred Healthcare, Inc.,
Senior Notes,
8%, 01/15/20
 

B3

   

619

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

450

    Molina Healthcare, Inc.,
Senior Notes,
5.375%, 11/15/22 (g)
 

Ba3

 

$

450

   
 

225

    MPH Acquisition Holdings,
Senior Notes,
7.125%, 06/01/24 (g)
 

Caa1

   

236

   
 

450

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

Ba1

   

480

   
 

525

    MPT Operating Partnership, L.P.,
Senior Notes,
6.875%, 05/01/21
 

Ba1

   

543

   
 

425

    Surgery Center Holdings,
Senior Notes,
8.875%, 04/15/21 (g)
 

Caa2

   

438

   
 

575

    Synlab Bondco PLC, Senior Notes,
6.25%, 07/01/22 (g) (EUR)
 

B2

   

673

   
 

250

    Synlab Bondco PLC, Senior Notes,
8.25%, 07/01/23 (g) (EUR)
 

Caa1

   

281

   
 

300

    Tenet Healthcare Corporation,
Senior Notes,
4.153%, 06/15/20
 

Ba3

   

298

   
 

1,332

    Tenet Healthcare Corporation,
Senior Notes,
6.75%, 06/15/23
 

Caa1

   

1,279

   
 

575

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

Caa1

   

586

   
 

675

    Valeant Pharmaceuticals
International, Senior Notes,
5.375%, 03/15/20 (g)
 

B3

   

577

   
 

2,350

    Valeant Pharmaceuticals
International, Senior Notes,
5.875%, 05/15/23 (g)
 

B3

   

1,898

   
 

2,200

    Valeant Pharmaceuticals
International, Senior Notes,
6.375%, 10/15/20 (g)
 

B3

   

1,892

   
 

350

    Valeant Pharmaceuticals
International, Senior Notes,
6.75%, 08/15/21 (g)
 

B3

   

299

   
 

150

    Valeant Pharmaceuticals
International, Senior Notes,
7%, 10/01/20 (g)
 

B3

   

134

   
     

18,031

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

Information Technology — 6.15%

 

$

875

    Ancestry.com Inc., Senior Notes,
9.625%, 10/15/18 (g)
 

Caa1

 

$

890

   
 

1,325

    Ancestry.com Inc., Senior Notes,
11%, 12/15/20
 

B3

   

1,421

   
 

1,700

    Bankrate, Inc., Senior Notes,
6.125%, 08/15/18 (g)
 

B2

   

1,687

   
 

700

    Blue Coat Holdings, Inc.,
Senior Notes,
8.375%, 06/01/23 (g)
 

Caa2

   

791

   
 

11

    CommScope Holding Company, Inc.,
Senior Notes,
6.625%, 06/01/20 (g)
 

B2

   

11

   
 

875

    CommScope Technologies LLC,
Senior Notes,
6%, 06/15/25 (g)
 

B2

   

901

   
 

325

    Diamond 1 Finance Corporation,
Senior Notes,
5.875%, 06/15/21 (g)
 

Ba2

   

332

   
 

525

    Diamond 1 Finance Corporation,
Senior Notes,
7.125%, 06/15/24 (g)
 

Ba2

   

549

   
 

300

    Match Group, Inc., Senior Notes,
6.375%, 06/01/24 (g)
 

Ba3

   

310

   
 

575

    Match Group, Inc., Senior Notes,
6.75%, 12/15/22 (g)
 

Ba3

   

595

   
 

350

    Micron Technology, Inc.,
Senior Notes,
5.25%, 08/01/23 (g)
 

Ba3

   

299

   
 

675

    Microsemi Corporation,
Senior Notes,
9.125%, 04/15/23 (g)
 

B2

   

744

   
 

400

    NXP B.V., Senior Notes,
5.75%, 02/15/21 (g)
 

Ba2

   

414

   
 

350

    SS&C Technologies Holdings, Inc.,
Senior Notes,
5.875%, 07/15/23
 

B3

   

359

   
 

200

    Veritas Bermuda Ltd., Senior Notes,
10.50%, 02/01/24 (g)
 

Caa1

   

170

   
 

1,425

    Western Digital Corporation,
Senior Notes,
7.375%, 04/01/23 (g)
 

Ba1

   

1,518

   
 

1,764

    Western Digital Corporation,
Senior Notes,
10.50%, 04/01/24 (g)
 

Ba2

   

1,887

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

650

    Zebra Technologies Corporation,
Senior Notes,
7.25%, 10/15/22
 

B2

 

$

689

   
     

13,567

   

Lodging — 1.00%

 
 

850

    Hilton Worldwide Finance,
Senior Notes,
5.625%, 10/15/21
 

Ba3

   

880

   
 

1,325

    Playa Resorts Holding B.V.,
Senior Notes,
8%, 08/15/20 (g)
 

Caa1

   

1,332

   
     

2,212

   

Manufacturing — 2.55%

 
 

700

    Accudyne Industries Borrower
S.C.A., Senior Notes,
7.75%, 12/15/20 (g)
 

Caa3

   

618

   
 

1,350

    Apex Tool Group, Senior Notes,
7%, 02/01/21 (g)
 

Caa1

   

1,174

   
 

400

    CNH Capital LLC, Senior Notes,
3.625%, 04/15/18
 

Ba1

   

401

   
 

500

    Gardner Denver Inc., Senior Notes,
6.875%, 08/15/21 (g)
 

Caa2

   

453

   
 

150

    Manitowoc Food Service,
Senior Notes,
9.50%, 02/15/24 (g)
 

Caa1

   

167

   
 

600

    Milacron LLC, Senior Notes,
7.75%, 02/15/21 (g)
 

Caa1

   

615

   
 

700

    Pfleiderer GmbH, Senior Notes,
7.875%, 08/01/19 (EUR)
 

B2

   

804

   
 

700

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

Ba3

   

721

   
 

675

    Terex Corporation, Senior Notes,
6%, 05/15/21
 

B2

   

673

   
     

5,626

   

Metals & Mining — 6.73%

 
 

350

    Aleris International, Inc.,
Senior Notes,
7.875%, 11/01/20
 

Caa2

   

307

   
 

450

    ArcelorMittal, Senior Notes,
10.85%, 06/01/19
 

Ba2

   

530

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

$

825

    BlueScope Steel (Finance) Limited,
Senior Notes,
6.50%, 05/15/21 (g)
 

Ba2

 

$

854

   
 

229

    BlueScope Steel (Finance) Limited,
Senior Notes,
7.125%, 05/01/18 (g)
 

Ba2

   

236

   
 

1,125

    Constellium NV, SeniorNotes,
7.875%, 04/01/21 (g)
 

B2

   

1,159

   
 

675

    Eldorado Gold Corporation,
Senior Notes,
6.125%, 12/15/20 (g)
 

B1

   

668

   
 

1,175

    FMG Resources, Senior Notes,
9.75%, 03/01/22 (g)
 

Ba2

   

1,287

   
 

475

    Freeport McMoran, Inc.,
Senior Notes,
2.375%, 03/15/18
 

B1

   

464

   
 

225

    Freeport McMoran, Inc.,
Senior Notes,
3.10%, 03/15/20
 

B1

   

213

   
 

325

    Freeport McMoran, Inc.,
Senior Notes,
4%, 11/14/21
 

B1

   

297

   
 

450

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

B1

   

358

   
 

1,775

    HudBay Minerals, Inc.,
Senior Notes,
9.50%, 10/01/20
 

Caa1

   

1,487

   
 

825

    Lundin Mining Corporation,
Senior Notes,
7.50%, 11/01/20 (g)
 

B1

   

837

   
 

225

    Lundin Mining Corporation,
Senior Notes,
7.875%, 11/01/22 (g)
 

B1

   

232

   
 

1,075

    Murray Energy Corporation,
Senior Notes,
11.25%, 04/15/21 (g)
 

C

   

301

   
 

425

    Novelis, Inc., Senior Notes,
8.75%, 12/15/20
 

B2

   

443

   
 

875

    Nyrstar Netherlands Holdings B.V.,
Senior Notes,
8.50%, 09/15/19 (g) (EUR)
 

Caa1

   

981

   
 

1,050

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

Caa1

   

1,087

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

375

    Teck Resources Limited,
Senior Notes,
6%, 08/15/40
 

Caa1

 

$

262

   
 

500

    Teck Resources Limited,
Senior Notes,
6.25%, 07/15/41
 

Caa1

   

357

   
 

325

    Teck Resources Limited,
Senior Notes,
8%, 06/01/21 (g)
 

B1

   

335

   
 

140

    Vale Overseas Limited,
Senior Notes,
4.375%, 01/11/22
 

Ba3

   

131

   
 

616

    Vale Overseas Limited,
Senior Notes,
5.875%, 06/10/21
 

Ba3

   

614

   
 

975

    Vale Overseas Limited,
Senior Notes,
6.875%, 11/21/36
 

Ba3

   

887

   
 

525

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

Caa2

   

529

   
     

14,856

   

Other Telecommunications — 2.32%

 
 

600

    Century Link Inc., Senior Notes,
7.50%, 04/01/24
 

Ba3

   

603

   
 

50

    Earthlink Inc., Senior Notes,
7.375%, 06/01/20
 

Ba3

   

52

   
 

475

    Equinix, Inc., Senior Notes,
5.375%, 01/01/22
 

B1

   

489

   
 

250

    Equinix, Inc., Senior Notes,
5.75%, 01/01/25
 

B1

   

258

   
 

875

    Frontier Communications, Inc.,
Senior Notes,
8.875%, 09/15/20
 

Ba3

   

934

   
 

625

    Level 3 Communications, Inc.,
Senior Notes,
5.75%, 12/01/22
 

B2

   

636

   
 

225

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

B1

   

220

   
 

725

    Level 3 Financing, Inc.,
Senior Notes,
5.375%, 01/15/24
 

B1

   

730

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

$

250

    Level 3 Financing, Inc.,
Senior Notes,
5.625%, 02/01/23
 

B1

 

$

252

   
 

650

    Rackspace Hosting, Inc.,
Senior Notes,
6.50%, 01/15/24 (g)
 

Ba1

   

643

   
 

300

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

B3

   

308

   
     

5,125

   

Publishing — 1.60%

 
 

625

    Cengage Learning, Inc.,
Senior Notes,
9.50%, 06/15/24 (g)
 

Caa1

   

637

   
 

225

    EMI Music Publishing Group,
Senior Notes,
7.625%, 06/15/24 (g)
 

B3

   

231

   
 

250

    Harland Clarke Holdings
Corporation, Senior Notes,
6.875%, 03/01/20 (g)
 

B1

   

231

   
 

325

    Harland Clarke Holdings
Corporation, Senior Notes,
9.75%, 08/01/18 (g)
 

B1

   

331

   
 

600

    McGraw Hill Global, Senior Notes,
7.875%, 05/15/24 (g)
 

B1

   

621

   
 

575

    MHGE Parent, LLC, Senior Notes,
8.50%, 08/01/19 (g)
 

Caa1

   

579

   
 

875

    Trader Corporation, Senior Notes,
9.875%, 08/15/18 (g)
 

B1

   

900

   
     

3,530

   

Real Estate Investment Trust Securities — .12%

 
 

250

    VEREIT Operating Partnership, L.P.,
Senior Securities,
4.125%, 06/01/21
 

Ba1

   

261

   

Restaurants — .90%

 
 

425

    1011778 B.C. United Liability
Company, Senior Notes,
4.625%, 01/15/22 (g)
 

Ba3

   

431

   
 

225

    KFC Holding Company,
Senior Notes,
5%, 06/01/24 (g)
 

B1

   

230

   
 

450

    KFC Holding Company,
Senior Notes,
5.25%, 06/01/26 (g)
 

B1

   

461

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

300

    P.F. Chang's China Bistro, Inc.,
Senior Notes,
10.25%, 06/30/20 (g)
 

Caa1

 

$

276

   
 

575

    Seminole Hard Rock Entertainment
Inc., Senior Notes,
5.875%, 05/15/21 (g)
 

B2

   

581

   
     

1,979

   

Retail — 2.25%

 
 

1,050

    Argos Merger, Inc., Senior Notes,
7.125%, 03/15/23 (g)
 

B3

   

1,079

   
 

150

    Claire's Stores, Inc., Senior
Subordinated Notes,
10.50%, 06/01/17
 

Ca

   

81

   
 

350

    JC Penney Corporation, Inc.,
Senior Notes,
5.875%, 07/01/23 (g)
 

B1

   

352

   
 

750

    JC Penney Corporation, Inc.,
Senior Notes,
8.125%, 10/01/19
 

Caa2

   

775

   
 

325

    JoAnn Stores Holdings, Inc.,
Senior Notes,
9.75%, 10/15/19 (g)
 

Caa1

   

281

   
 

550

    JoAnn Stores LLC, Senior Notes,
8.125%, 03/15/19 (g)
 

B3

   

527

   
 

400

    Kirk Beauty One GmbH,
Senior Notes,
8.75%, 07/15/23 (g) (EUR)
 

Caa1

   

469

   
 

120

    Matalan Finance Plc, Senior Notes,
6.875%, 06/01/19 (g) (GBP)
 

B2

   

123

   
 

425

    New Look Secured Issuer Plc,
Senior Notes,
6.50%, 07/01/22 (g) (GBP)
 

B1

   

519

   
 

125

    New Look Senior Issuer Plc,
Senior Notes,
8%, 07/01/23 (g) (GBP)
 

Caa1

   

144

   
 

725

    The Men's Warehouse, Inc.,
Senior Notes,
7%, 07/01/22
 

B2

   

608

   
     

4,958

   

Satellites — 1.28%

 
 

775

    Hughes Satellite Systems, Inc.,
Senior Notes,
7.625%, 06/15/21
 

B3

   

834

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

$

825

    Intelsat Jackson Holdings Ltd.,
Senior Notes,
7.25%, 10/15/20
 

Caa2

 

$

588

   
 

1,275

    Intelsat Jackson Holdings Ltd.,
Senior Notes,
7.50%, 04/01/21
 

Caa2

   

880

   
 

525

    Intelsat Jackson Holdings Ltd.,
Senior Notes,
8%, 02/15/24 (g)
 

B1

   

520

   
     

2,822

   

Services — 7.68%

 
 

525

    Acosta, Inc., Senior Notes,
7.75%, 10/01/22 (g)
 

Caa1

   

463

   
 

350

    The ADT Corporation, Senior Notes,
4.125%, 06/15/23
 

Ba2

   

327

   
 

600

    The ADT Corporation, Senior Notes,
6.25%, 10/15/21
 

Ba2

   

637

   
 

550

    Alliance Data Systems Company,
Senior Notes,
5.375%, 08/01/22 (g)
 

(e)

   

525

   
 

250

    Ashtead Capital Inc., Senior Notes,
6.50%, 07/15/22 (g)
 

Ba3

   

258

   
 

825

    Avis Budget Car, Senior Notes,
5.25%, 03/15/25 (g)
 

B1

   

738

   
 

425

    Blueline Rental Finance,
Senior Notes,
7%, 02/01/19 (g)
 

B3

   

364

   
 

1,625

    CEB, Inc., Senior Notes,
5.625%, 06/15/23 (g)
 

Ba3

   

1,580

   
 

700

    Corelogic Inc., Senior Notes,
7.25%, 06/01/21
 

Ba3

   

726

   
 

750

    First Data Corporation,
Senior Notes,
5.375%, 08/15/23 (g)
 

B1

   

759

   
 

3,425

    First Data Corporation,
Senior Notes,
7%, 12/01/23 (g)
 

Caa1

   

3,476

   
 

675

    H&E Equipment Services,
Senior Notes,
7%, 09/01/22
 

B3

   

699

   
 

541

    Lender Processing Services, Inc.,
Senior Notes,
5.75%, 04/15/23
 

Baa3

   

566

   
 

1,600

    Lincoln Finance Limited,
Senior Notes,
6.875%, 04/15/21 (g) (EUR)
 

B1

   

1,900

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

150

    Loxam SAS, Senior
Subordinated Notes,
7%, 07/23/22 (g) (EUR)
 

(e)

 

$

177

   
 

425

    MSCI, Inc., Senior Notes,
5.25%, 11/15/24 (g)
 

Ba2

   

432

   
 

325

    Nord Anglia Education Finance LLC,
Senior Notes,
5.75%, 07/15/22 (g) (CHF)
 

B1

   

337

   
 

925

    Outerwall, Inc., Senior Notes,
6%, 03/15/19
 

B1

   

853

   
 

475

    Prime Security One , LLC,
Senior Notes,
4.875%, 07/15/32 (g)
 

(e)

   

363

   
 

300

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

B3

   

318

   
 

225

    Sabre GLBL, Inc., Senior Notes,
5.375%, 04/15/23 (g)
 

Ba3

   

228

   
 

900

    Safway Group Holding LLC,
Senior Notes,
7%, 05/15/18 (g)
 

B3

   

902

   
 

650

    Transworld Systems, Inc.,
Senior Notes,
9.50%, 08/15/21 (g)
 

Caa2

   

315

   
     

16,943

   

Supermarkets — 1.92%

 
 

725

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

B3

   

749

   
 

325

    Albertson's Inc., Senior Notes,
7.45%, 08/01/29
 

(e)

   

317

   
 

200

    Albertson's Inc., Senior Notes,
8%, 05/01/31
 

(e)

   

198

   
 

1,325

    Rite Aid Corporation, Senior Notes,
6.125%, 04/01/23 (g)
 

B3

   

1,418

   
 

1,300

    Rite Aid Corporation, Senior Notes,
6.75%, 06/15/21
 

B3

   

1,372

   
 

182

    Safeway, Inc., Senior Notes,
7.25%, 02/01/31
 

B3

   

175

   
     

4,229

   

Transportation — .40%

 
 

325

    OPE KAG Finance, Senior Notes,
7.875%, 07/31/23 (g)
 

B3

   

321

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

$

125

    Swissport Investments, S.A.,
Senior Notes,
6.75%, 12/15/21 (g) (EUR)
 

B1

 

$

142

   
 

425

    Watco Companies, LLC,
Senior Notes,
6.375%, 04/01/23 (g)
 

B3

   

421

   
     

884

   

Utilities — 3.50%

 
 

850

    AES Corporation, Senior Notes,
5.50%, 03/15/24
 

Ba3

   

871

   
 

400

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

Ba3

   

409

   
 

625

    Calpine Corporation, Senior Notes,
5.375%, 01/15/23
 

B2

   

609

   
 

825

    ContourGlobal Power Holdings S.A.,
Senior Notes,
5.125%, 06/15/21 (g) (EUR)
 

(e)

   

906

   
 

675

    Dynergy Finance, Senior Notes,
6.75%, 11/01/19
 

B3

   

677

   
 

1,646

    Energy Future Intermediate Holding
Company, Senior Secured Notes,
11.75%, 03/01/22 (a)(b)(g)
 

(e)

   

1,930

   
 

1,150

    NRG Energy, Inc., Senior Notes,
6.625%, 03/15/23
 

B1

   

1,133

   
 

675

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

B1

   

672

   
 

450

    TerraForm Power Operating LLC,
Senior Notes,
5.875%, 02/01/23 (g)
 

Caa1

   

428

   
 

100

    TerraForm Power Operating LLC,
Senior Notes,
6.125%, 06/15/25 (g)
 

Caa1

   

94

   
     

7,729

   

Wireless Communications — 5.41%

 
 

675

    Arqiva Broadcasting, Senior Notes,
9.50%, 03/31/20 (g) (GBP)
 

B3

   

953

   
 

400

    Digicel Group Limited,
Senior Notes,
6%, 04/15/21 (g)
 

B1

   

342

   
 

250

    Digicel Group Limited,
Senior Notes,
7.125%, 04/01/22 (g)
 

Caa1

   

186

   
 

1,375

    Digicel Group Limited,
Senior Notes,
8.25%, 09/30/20 (g)
 

Caa1

   

1,145

   

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

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

CORPORATE DEBT SECURITIES — continued

 

$

500

    OTE Plc, Senior Notes,
7.875%, 02/07/18 (EUR)
 

Caa2

 

$

590

   
 

825

    Sable International Finance Limited,
Senior Notes,
6.875%, 08/01/22 (g)
 

Ba3

   

821

   
 

2,500

    Sprint Communications, Inc.,
Senior Notes,
8.75%, 03/15/32
 

Caa1

   

2,128

   
 

325

    TBG Global Pte. Ltd., Senior Notes,
5.25%, 02/10/22
 

(e)

   

327

   
 

275

    T-Mobile, USA, Inc., Senior Notes,
6%, 04/15/24
 

Ba3

   

285

   
 

300

    T-Mobile, USA, Inc., Senior Notes,
6.375%, 03/01/25
 

Ba3

   

314

   
 

175

    T-Mobile, USA, Inc., Senior Notes,
6.50%, 01/15/24
 

Ba3

   

184

   
 

2,400

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

Ba3

   

2,532

   
 

180

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

(e)

   

179

   
 

305

    Vimpelcom Holdings, Senior Notes,
5.20%, 02/13/19 (g)
 

Ba3

   

314

   
 

1,725

    Wind Acquistion Holdings Finance
S.A., Senior Notes,
7.375%, 04/23/21 (g)
 

Caa1

   

1,652

   
     

11,952

   
    Total Corporate Debt Securities
(Total cost of $289,257)
           

285,826

   

BANK DEBT SECURITIES — .22% (d)(f)

 

Energy — .22%

 
 

514

    Hercules Offshore Inc.,
10.50%, 05/06/20 (b)
 

(e)

   

489

   
    Total Bank Debt Securities
(Total cost of $498)
           

489

   

Shares

 

PREFERRED STOCK — .66% (d)(f)

 

Health Care — .20%

 
 

539

   

Allergan Plc, Convertible, 5.50%

 

(e)

   

449

   

Shares

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

Wireless Communications — .46%

 
 

2,207

    American Tower Corporation,
Convertible, 5.25%
 

(e)

 

$

248

   
 

2,159

    American Tower Corporation,
Convertible, 5.50%
 

(e)

   

243

   
 

2,800

    Crown Castle International Corp.,
Convertible, 4.50%
 

(e)

   

339

   
 

2,476

    T-Mobile US, Inc., Convertible,
5.50%
 

(e)

   

182

   
     

1,012

   
    Total Preferred Stock
(Total cost of $1,381)
           

1,461

   

COMMON STOCK — 1.34% (d)(f)

 
 

17,400

   

First Data Corporation (c)

 

 

   

193

   
 

3,000

   

Howard Hughes Corporation (c)

 

 

   

343

   
 

6,025

   

Liberty Broadband Corporation (c)

 

 

   

362

   
 

28,643

   

NRG Energy, Inc

 

 

   

429

   
 

6,750

    Pacific Exploration Corporation,
Warrants (b)(c)(i)
 

 

   

22

   
 

26,400

   

Rowan Companies plc (c)

 

 

   

466

   
 

267

   

Sentry Holdings A (c)(i) (GBP)

 

 

   

   
 

59,572

   

Sentry Holdings B (c)(i) (GBP)

 

 

   

40

   
 

15,600

   

T-Mobile US, Inc. (c)

 

 

   

675

   
 

21,900

   

YPF S.A. ADR

 

 

   

420

   
     

2,950

   
    Total Common Stock
(Total cost of $3,015)
           

2,950

   
    TOTAL INVESTMENTS —
131.71% (d)
(Total cost of $294,151)
           

290,726

   
    CASH AND OTHER ASSETS
LESS LIABILITIES — (31.71)% (d)
           

(70,001

)

 
       

NET ASSETS — 100.00%

     

$

220,725

   

(a)  Denotes income is not being accrued.

(b)  Denotes issuer is in bankruptcy proceedings.

(c)  Non-income producing.

(d)  Percentages indicated are based on total net assets to common shareholders of $220,725.

(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.

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



The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2016 (Unaudited) — Continued (Dollar Amounts in Thousands)

(g)  Securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers in transactions exempt from registration. Unless otherwise noted, 144A Securities are deemed to be liquid. See Note 1of the Notes to Financial Statements for valuation policy. Total market value of Rule 144A securities amounted to $167,620 as of June 30, 2016.

(h)  Pay-In-Kind

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

(CAD)  Canadian Dollar

(CHF)  Swiss Franc

(EUR)  Euro

(GBP)  British Pound

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




The New America High Income Fund, Inc.

Statement of Assets and Liabilities
June 30, 2016 (Unaudited)

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

Assets:

 
INVESTMENTS IN SECURITIES, at value (Identified
cost of $294,151 see Schedule of Investments
and Note 1)
 

$

290,726

   
CASH    

2,008

   

RECEIVABLES:

 
Investment securities sold    

465

   

Interest and dividends

   

5,351

   
PREPAID EXPENSES    

42

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

579

   

Total assets

 

$

299,171

   

Liabilities:

 

CREDIT AGREEMENT (Note 4)

 

$

76,000

   

PAYABLES:

 
Investment securities purchased    

1,993

   
Dividend on common stock    

69

   
Interest on loan (Note 4)    

73

   
ACCRUED EXPENSES (Note 3)    

183

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

128

   

Total liabilities

 

$

78,446

   

Net Assets

 

$

220,725

   

Represented By:

 

COMMON STOCK:

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

$

234

   

CAPITAL IN EXCESS OF PAR VALUE

   

268,521

   
UNDISTRIBUTED NET INVESTMENT INCOME
(Note 2)
   

1,387

   
ACCUMULATED NET REALIZED LOSS FROM
SECURITIES TRANSACTIONS (Note 2)
   

(46,443

)

 
NET UNREALIZED DEPRECIATION ON
INVESTMENTS AND FORWARD
CURRENCY EXCHANGE CONTRACTS
   

(2,974

)

 
Net Assets Applicable To Common Stock
(Equivalent to $9.45 per share, based on
23,368,918 shares outstanding)
 

$

220,725

   

Statement of Operations
For the Six Months Ended
June 30, 2016 (Unaudited)
(Dollars in thousands)

Investment Income: (Note 1)  

Interest income

 

$

10,497

   
Dividend income    

70

   

Total investment income

 

$

10,567

   

Expenses:

 

Cost of leverage:

 

Interest expense (Note 4)

 

$

601

   
Loan fees (Note 4)    

8

   

Total cost of leverage

 

$

609

   

Professional services:

 

Investment Advisor (Note 3)

 

$

523

   
Custodian and transfer agent    

162

   
Legal    

149

   
Audit    

29

   

Total professional services

 

$

863

   

Administrative:

 
General administrative (Note 6)  

$

228

   
Directors    

151

   
Insurance    

68

   

Shareholder communications

   

19

   
Miscellaneous    

15

   
NYSE    

13

   

Total administrative

 

$

494

   

Total expenses

 

$

1,966

   

Net investment income

 

$

8,601

   

Realized and Unrealized Gain (Loss) on Investment Activities:

 

Realized loss on investments and currencies, net

 

$

(6,007

)

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

$

18,619

   

Net gain on investments

 

$

12,612

   
Net increase in net assets resulting
from operations
 

$

21,213

   

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



The New America High Income Fund, Inc.

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

  Six Months
Ended
June 30, 2016
(Unaudited)
  For the
Year Ended
December 31,
2015
 

From Operations:

 

Net investment income

 

$

8,601

   

$

17,773

   

Realized loss on investments and currencies, net

   

(6,007

)

   

(8,653

)

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

18,619

     

(19,470

)

 

Net increase (decrease) in net assets resulting from operations

 

$

21,213

   

$

(10,350

)

 

Distributions to Common Stockholders:

 

From net investment income ($.30 and $.81 per share in 2016 and 2015, respectively)

 

$

(7,011

)

 

$

(18,869

)

 

Total net increase (decrease) in net assets

 

$

14,202

   

$

(29,219

)

 

Net Assets Applicable to Common Stock:

 

Beginning of period

 

$

206,523

   

$

235,742

   
End of period (Including $1,387 and $82 of undistributed net investment income/(loss)
at June 30, 2016 and December 31, 2015, respectively)
 

$

220,725

   

$

206,523

   

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



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
Six Months
Ended
June 30, 2016
 

For the Years Ended December 31,

 
   

(Unaudited)

 

2015

 

2014

 

2013

 

2012

 

2011

 

NET ASSET VALUE:

 

Beginning of period

 

$

8.84

   

$

10.09

   

$

10.58

   

$

10.49

   

$

9.58

   

$

10.17

   

NET INVESTMENT INCOME

   

.37

     

.76

     

.80

     

.83

     

.93

     

1.03

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

.54

     

(1.20

)

   

(.45

)

   

.12

     

.96

     

(.57

)

 
DISTRIBUTIONS FROM NET INVESTMENT INCOME RELATED TO
PREFERRED STOCK: (b)
   

     

     

     

     

(.01

)

   

(.01

)

 

TOTAL FROM INVESTMENT OPERATIONS

   

.91

     

(.44

)

   

.35

     

.95

     

1.88

     

.45

   

DISTRIBUTIONS TO COMMON SHAREHOLDERS:

 

From net investment income

   

(.30

)

   

(.81

)

   

(.84

)

   

(.86

)

   

(.97

)

   

(1.04

)

 

TOTAL DISTRIBUTIONS

   

(.30

)

   

(.81

)

   

(.84

)

   

(.86

)

   

(.97

)

   

(1.04

)

 

NET ASSET VALUE:

 

End of period

 

$

9.45

   

$

8.84

   

$

10.09

   

$

10.58

   

$

10.49

   

$

9.58

   

PER SHARE MARKET VALUE:

 

End of period

 

$

8.55

   

$

7.66

   

$

8,94

   

$

9.65

   

$

10.45

   

$

10.21

   

TOTAL INVESTMENT RETURN†

   

15.71

%

   

(5.68

)%

   

1.02

%

   

.73

%

   

12.18

%

   

13.61

%

 

  †  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.
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 — Continued

  For the
Six Months
Ended
June 30, 2016
 

For the Years Ended December 31,

 
   

(Unaudited)

 

2015

 

2014

 

2013

 

2012

 

2011

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

$

220,725

   

$

206,523

   

$

235,742

   

$

247,288

   

$

244,631

   

$

221,656

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

     

     

     

     

   

$

85,425

   
TOTAL NET ASSETS APPLICABLE TO COMMON AND PREFERRED
STOCK, END OF PERIOD (a)(b)
 

$

220,725

   

$

206,523

   

$

235,742

   

$

247,288

   

$

244,631

   

$

307,081

   

EXPENSE RATIOS:

 

Ratio of interest expense to average net assets*

   

.57

%**

   

.42

%

   

.40

%

   

.43

%

   

.06

%

   

   
Ratio of preferred and other leverage expenses to
average net assets*
   

.01

%**

   

.01

%

   

     

     

.04

%

   

.04

%

 

Ratio of operating expenses to average net assets*

   

1.29

%**

   

1.20

%

   

1.14

%

   

1.23

%

   

1.38

%

   

1.42

%

 

RATIO OF TOTAL EXPENSES TO AVERAGE NET ASSETS*

   

1.87

%**

   

1.63

%

   

1.54

%

   

1.66

%

   

1.48

%

   

1.46

%

 

RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS*

   

8.20

%**

   

7.65

%

   

7.41

%

   

7.82

%

   

9.07

%

   

10.10

%

 
RATIO OF TOTAL EXPENSES TO AVERAGE NET ASSETS APPLICABLE
TO COMMON AND PREFERRED STOCK (b)
   

     

     

     

     

1.13

%

   

1.07

%

 
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS
APPLICABLE TO COMMON AND PREFERRED STOCK (b)
   

     

     

     

     

6.94

%

   

7.41

%

 

PORTFOLIO TURNOVER RATE

   

39.74

%

   

71.73

%

   

48.26

%

   

63.65

%

   

69.91

%

   

58.91

%

 

  (a)  Dollars in thousands.

  (b)  In November 2012, the preferred stock was redeemed.

  *  Ratios calculated on the basis of expenses and net investment income applicable to the common shares relative to the average net assets of the common stockholders only.

  **  Annualized

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



The New America High Income Fund, Inc.

Information Regarding
Senior Securities

   

June 30, 2016

 

As of December 31,

 
   

(Unaudited)

 

2015

 

2014

 

2013

 

2012

 

2011

 

TOTAL AMOUNT OUTSTANDING:

 

Preferred Stock

 

$

   

$

   

$

   

$

   

$

   

$

85,425,000

   

Credit Agreement

 

$

76,000,000

   

$

80,000,000

   

$

90,000,000

   

$

100,000,000

   

$

85,425,000

     

   
ASSET COVERAGE:  

Per Preferred Stock Share (1)

 

$

   

$

   

$

   

$

   

$

   

$

89,869

   

Per $1,000 borrowed under Credit Agreement (2)

 

$

3,904

   

$

3,582

   

$

3,619

   

$

3,473

   

$

3,864

     

   

Credit Agreement Asset Coverage (3)

   

390

%

   

358

%

   

362

%

   

347

%

   

386

%

   

   

INVOLUNTARY LIQUIDATION PREFERENCE:

 

Per Preferred Stock Share (4)(5)

 

$

   

$

   

$

   

$

   

$

   

$

25,000

   

LIQUIDATION VALUE:

 

Per Preferred Stock Share (4)(5)

 

$

   

$

   

$

   

$

   

$

   

$

25,000

   

  (1)  Calculated by subtracting the Fund's total liabilities from the Fund's total assets and dividing such amount by the number of preferred shares outstanding.

  (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, (per $1,000 of amount borrowed).

  (3)  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.

  (4)  Plus accumulated and unpaid dividends.

  (5)  In November 2012, the Fund redeemed all outstanding shares of its preferred stock at the liquidation preference per share of $25,000.

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



The New America High Income Fund, Inc.

Statement of Cash Flows (Dollars in thousands)

    For the
Six Months
Ended
June 30, 2016
(Unaudited)
 

Cash Flows From Operating Activities:

 

Purchases of portfolio securities

 

$

(114,208

)

 
Sales of portfolio securities    

117,330

   

Net purchases, sales and maturities of short-term securities

   

9

   
Interest and dividends received    

10,361

   

Operating expenses paid

   

(1,971

)

 

Net cash provided by operating activities

 

$

11,521

   

Cash Flows From Financing Activities:

 

Credit facility reduction

   

(4,000

)

 

Common stock dividends

   

(9,181

)

 

Net cash used by financing activities

 

$

(13,181

)

 

Net Decrease in Cash

 

$

(1,660

)

 
Cash at Beginning of Period    

3,668

   

Cash at End of Period

 

$

2,008

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

Purchases of portfolio securities

 

$

(114,208

)

 
Sales of portfolio securities    

117,330

   

Net purchases, sales and maturities of short-term securities

   

9

   
Net increase in net assets resulting from operations    

21,213

   
Amortization of interest    

(130

)

 
Net realized loss on investments and currencies    

6,007

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

(18,619

)

 
Increase in interest and dividend receivable    

(76

)

 
Decrease in prepaid expenses    

53

   
Decrease in accrued expenses and other payables    

(58

)

 

Net cash provided by operating activities

 

$

11,521

   

The accompanying notes are an integral part of these financial statements.
27




The New America High Income Fund, Inc.

Notes to Financial Statements
June 30, 2016 (Unaudited)

(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.


28



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
June 30, 2016 (Unaudited)

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

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

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

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

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

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

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

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

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

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


29



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
June 30, 2016 (Unaudited)

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, 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 June 30, 2016 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*

 

$

   

$

286,077

   

$

238

   

$

286,315

   

Preferred Stock

 

Health Care

   

449

     

     

     

449

   
Wireless
Communications
   

1,012

     

     

     

1,012

   

Common Stock

 
Building & Real
Estate
   

343

     

     

     

343

   

Cable

   

362

     

     

     

362

   

Energy

   

886

     

     

22

     

908

   

Financial

   

     

     

40

     

40

   

Services

   

193

     

     

     

193

   

Utilities

   

429

     

     

     

429

   
Wireless
Communications
   

675

     

     

     

675

   

Total Investments

 

$

4,349

   

$

286,077

   

$

300

   

$

290,726

   


30



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
June 30, 2016 (Unaudited)

   

Level 1

 

Level 2

 

Level 3

 

Total Value

 
    Quoted
Prices

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

(000's)

 
Forward Currency
Exchange
Contracts
 

$

   

$

459

   

$

   

$

459

   

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

The Fund owned four Level 3 securities at June 30, 2016. They are identified on the Schedule of Investments with a footnote (i) and have a value of $300,000. 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 absence of trading, the occurrence of company specific or industry events, liquidity, broker coverage and other market factors.

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

 

Securities

 

Balance, December 31, 2015

 

$

   

Net purchases/(sales)

   

260

   

Change in unrealized appreciation (depreciation)

   

   

Realized gain (loss)

   

   

Transfers to Level 3 from Level 2

   

40

   

Balance, June 30, 2016

 

$

300

   

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

Transfers between levels are recognized at the value at the end of the reporting period. During the six months ended June 30, 2016, the Fund recognized no transfers between Levels 1 and 2.

(2) Tax Matters and Distributions

At June 30, 2016, the total cost of securities (including temporary cash investments) for federal income tax purposes was approximately $294,223,000. Aggregate gross unrealized gain on securities in which there was

an excess of value over tax cost was approximately $7,432,000. Aggregate gross unrealized loss on securities in which there was an excess of tax cost over value was approximately $10,929,000. Net unrealized loss on investments for tax purposes at June 30, 2016 was approximately $3,497,000.

At December 31, 2015, the Fund had approximate capital loss carryovers available to offset future capital gains, if any, to the extent provided by regulations:

Carryover Available

 

Character

 

Expiration Date

 

$

2,073,000

           

December 31, 2016

 
 

26,830,000

           

December 31, 2017

 
 

6,644,000

   

Short-term

 

None

 
 

2,266,000

   

Long-term

 

None

 

$

37,813,000

               

As a result of the passage of the Regulated Investment Company Modernization Act of 2010 (the "Act"), losses incurred in this 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, 2015, the Fund had total capital loss carryforwards of $37,813,000. At December 31, 2015, the Fund has post October capital loss deferrals of $2,853,000 which will be recognized in 2016.

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

The tax character of distributions paid to common shareholders in 2015 and 2014 of approximately $18,869,000 and $19,513,000, respectively, was from ordinary income.

As of December 31, 2015, the components of distributable earnings on a tax basis were approximately:

Undistributed Ordinary income

 

$

834,000

   
Unrealized Loss Investments and
Currencies
   

(22,400,000

)

 

Capital Losses Carry Forward

   

(37,813,000

)

 

Post October Losses

   

(2,853,000

)

 
   

$

(62,232,000

)

 


31



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
June 30, 2016 (Unaudited)

The difference between components of distributable earnings on a tax basis and the amounts reflected in the Statement of Assets and Liabilities are primarily due to market discount adjustments, wash sales and post-October losses. The Fund has recorded several reclassifications in the capital accounts to present undistributed net investment income and accumulated net realized losses on a tax basis. These reclassifications have no impact on the net asset value of the Fund. For the year ended December 31, 2015, permanent differences between book and tax accounting have been reclassified as follows:

Increase (decrease) in:

Undistributed net investment income

 

$

1,246,000

   

Capital in excess of par value

 

$

1,000

   
Accumulated net realized loss from
securities transactions
 

$

(1,247,000

)

 

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 2012-2014, or expected to be taken in the Fund's 2015 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 $523,000 in management fees during the six months ended June 30, 2016. 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 senior securities. At June 30, 2016, the fee payable to T. Rowe Price was approximately $89,000, which was included in accrued expenses on the accompanying statement of assets and liabilities.

(4) Bank Credit Agreement

The Fund has a credit agreement with The Bank of Nova Scotia pursuant to which the Fund may borrow up to an aggregate amount of $100,000,000. During the six months ended June 30, 2016 the Fund had a net loan reduction of $4,000,000. On June 30, 2016 the total amount outstanding on the loan was $76,000,000. The term of the facility has been extended to October 2016. 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 1.35% and will be in effect until July 8, 2016 at which time the rate will be reset. For the six months ended June 30, 2016 the weighted average rate on the loan was approximately 1.33% and the maximum amount borrowed during the period was $90,000,000.

The Fund pays a commitment fee to The Bank of Nova Scotia at a rate of .15% per annum for any unused


32



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
June 30, 2016 (Unaudited)

portion of borrowings not to exceed $100,000,000. For the six months ended June 30, 2016 the Fund paid approximately $8,000 for this commitment.

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

(5) Purchases and Sales of Securities

Purchases and proceeds of sales or maturities of long-term securities during the six months ended June 30, 2016 were approximately:

Cost of purchases

 

$

116,121,000

   

Proceeds of sales or maturities

 

$

117,623,000

   

(6) Related Party Transactions

The Fund paid approximately $96,000 during the six months ended June 30, 2016 to an officer of the Fund for the provision of certain administrative services.

(7) Derivative Contracts (Unaudited) (Currency Amounts in Thousands)

Forward Currency Exchange Contracts—As of June 30, 2016 the Fund had forward currency exchange contracts outstanding as follows:

Counterparty   Settlement
Date
  Receive
(Deliver)
 

Asset

 

Liability

  Unrealized
Appreciation
(Depreciation)
 

Morgan Stanley

 

7/15/16

 

GBP

86

   

$

114

   

$

124

   

$

(10

)

 

Barclays Bank

 

7/15/16

 

GBP

818

     

1,088

     

1,183

     

(95

)

 

Westpac Banking

 

7/15/16

 

GBP

(3,055

)

   

4,355

     

4,067

     

288

   

Barclays Bank

 

7/15/16

 

GBP

(105

)

   

155

     

139

     

16

   

Standard Chartered Bank

 

8/19/16

 

CHF

(343

)

   

354

     

352

     

2

   

JP Morgan

 

9/15/16

 

EUR

104

     

115

     

117

     

(2

)

 

JP Morgan

 

9/15/16

 

EUR

104

     

116

     

118

     

(2

)

 

Royal Bank of Scotland

 

9/15/16

 

EUR

130

     

144

     

147

     

(3

)

 

Deutsche Bank

 

9/15/16

 

EUR

243

     

270

     

270

     

   

Standard Chartered Bank

 

9/15/16

 

EUR

(14,509

)

   

16,407

     

16,143

     

264

   

Citibank

 

9/15/16

 

EUR

(699

)

   

787

     

778

     

9

   

Bank of America

 

9/30/16

 

CAD

(736

)

   

562

     

570

     

(8

)

 

Net unrealized gain on open forward currency exchange contracts

 

$

459

   


33



The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
June 30, 2016 (Unaudited)

Fair Value of Derivative Instruments—The fair value of derivative instruments as of June 30, 2016 was as follows:

  Asset Derivatives
June 30, 2016
 

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

$

579

   

 
 
 
  Unrealized loss
on currency and
forward currency
exchange contracts
   

(120

)

 

The effect of derivative instruments that are included on the Statement of Operations for the six months ended June 30, 2016 was as follows:

Amount of Realized Gain on Derivatives

 
    Realized gain on
investments and
currencies, net
 

Forward currency contracts

 

$

55

   

Change in Unrealized Appreciation on Derivatives

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

Forward currency contracts

 

$

54

   

(8) Recent Accounting Pronouncement

In May 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-07 "Disclosure for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)". The amendments in ASU No. 2015-07 remove the requirement to categorize within the fair value hierarchy investments measured using the NAV practical expedient. The ASU also removes certain disclosure requirements for investments that qualify, but do not utilize, the NAV practical expedient. The amendments in the ASU are effective for fiscal years beginning after December 15, 2015, and interim periods within those years. Management has adopted this pronouncement and there is no impact on the Fund's financial statements and related disclosures.

(9) Subsequent Events

The Fund has evaluated the need for additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no adjustments were required to the financial statements as of June 30, 2016.


34




The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information
(Unaudited)

Availability of Portfolio Holdings

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

Compliance with CFTC Regulation of Transactions in Commodity Interests

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

Common Stock Transactions

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


35



The New America High Income Fund, Inc.

Directors

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

Officer

Ellen E. Terry – President, Treasurer, Secretary

Investment Advisor

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

Administrator

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

Custodian

State Street Corporation
One Lincoln Street
Boston, MA 02111

Transfer Agent

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

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


36




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

The New
America
High Income
Fund, Inc.

Semi-Annual

Report

June 30, 2016




 

Item 2 -

Code of Ethics - Not required in semi-annual filing.

 

 

Item 3 -

Audit Committee Financial Experts - Not required in a semi-annual filing.

 

 

Item 4 -

Principal Accountant Fees and Services - Not required in semi-annual filing.

 

 

Item 5 -

Audit Committee of Listed Registrant - Not required in semi-annual filing.

 

 

Item 6 -

Schedule of Investments - Included as part of the report to shareholders filed under Item 1 of this Form.

 

 

Item 7 -

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies - Not required in semi-annual filing.

 

 

Item 8 -

Portfolio Managers of Closed-End Management Investment Companies - Not required in semi-annual filing.

 

2



 

Item 9 -

Purchases 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 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

 

ITEM 12.  EXHIBITS.

 

(a)(1)

 Not Applicable.

 

 

(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.

 

3



 

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:

August 31, 2016

 

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 and Treasurer

 

Date:

August 31, 2016

 

4