Total Returns for the Periods Ending June 30, 2023
	1 Year	3 Years Cumulative
New America High Income Fund, Inc. (Stock Price and Dividends)*	17.42%	(1.01)%
New America High Income Fund, Inc. (NAV and Dividends)*	11.28%	2.11%
Credit Suisse High Yield Index	10.22%	5.96%

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

Past performance is no guarantee of future results. Total returns are calculated by determining the percentage change in net asset value or market price (as applicable) and assumes the reinvestment of dividends. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted.

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

Commentary by T. Rowe Price Associates, Inc.

Market Review

The high yield market returned 2.74% in the six months ended June 30, 2024, according to the Credit Suisse High Yield Index.

The U.S. economy has continued down a path of resilient growth despite the Fed Funds rate remaining at a two-decade high, providing a supportive backdrop for sub-investment grade fundamentals, which tend to be sensitive to economic conditions.

U.S. stocks rose in the first half of 2024, adding to 2023's brisk gains and lifting some equity market indexes to new all-time highs. Inflation remained somewhat elevated, discouraging Federal Reserve policymakers from reducing short-term interest rates. While bond yields rebounded partially from a sharp decline late last year, the equity market was boosted by generally favorable corporate earnings ad strong investor interest in companies expected to benefit from artificial intelligence (AI) developments.

Stocks picked up momentum in February, seemingly helped by signs that the economy was continuing to defy skeptics and grow despite high interest rates. However, stronger economic growth brought some unwelcome inflation surprises late in the first quarter, dashing hopes for a March rate cut. Fed Chair Jerome Powell testified before Congress that policymakers were "not far" from having confidence that inflation's downtrend will be sustained, enabling them to begin cutting rates.

Following flat growth in April, retail sales rose by just 0.1% in May. Personal income rose more than expected, up 0.5% in May, while personal spending fell slightly short of expectations at 0.2%, indicating that households are saving more. The Labor Department reported that employers added 272,000 jobs in May, well above expectations and higher than the downwardly revised count for April. However, the unemployment rate rose for the third consecutive month, reaching 4% even as the labor force participation rate declined.

Downside surprises in consumer and producer prices data supported the view that inflationary pressures are easing and fueled expectations that the Fed remains on course to begin cutting interest rates in the year's second half. The consumer price index ("CPI") and producer price index readings came in below expectations in May, as core CPI rose by a smaller-than-expected 3.4% year over year ("YoY"), while producer prices rose 2.2% YoY, down from 2.3% in April. The core personal consumption expenditures inflation rate, which is closely watched by the Fed, improved from 2.8% on an annual basis to 2.6% in May.

The Federal Open Market Committee made no rate moves at its June meeting, as expected, and made minimal changes to the policy statement, which noted "modest" further progress toward its inflation target. The summary of economic projections was on the hawkish side of expectations. The median projection was for only one rate cut this year, down from the three reductions expected in March. The outlook for the long-run neutral Fed Funds rate was raised from 2.6% to 2.8%.

The yield spread between high yield bonds and U.S. Treasuries narrowed by 52 basis points during the six-month period While $165.5 billion in new high yield debt was issued in the first half of the year, compared with $95.6 billion during the first half of 2023, net issuance was considerably lower as refinancing was the largest category of issuance at 81% of the gross volume. The J.P. Morgan par-weighted default rate declined to 1.17% from 2.08% in December, remaining well below its long-term average.

Portfolio Review

Credit selection in the services segment contributed to relative performance, partly due to the Fund's position in Ascend Learning, which provides online educational content, software, and analytics serving institutions, students, and employers in health care and other licensure-driven professions. We believe that the company has an attractive business model, growth tailwinds in several key end markets, and should be relatively defensive in the event of an economic downturn. The company's loans steadily rallied from the mid-80s to high-90s throughout the first quarter. Ascend Learning subsequently posted strong 1Q24 results.

The portfolio's allocation to bank loans aided relative performance, partly due to UKG (Ultimate Kronos Group), a provider of workforce management solutions and human resource management services. The company has a market-leading product suite, diversified and sticky customer base, and, in our view, a recession-resilient recurring revenue profile.

Our meaningful underweight in the other telecommunications (wirelines) sector added value. In our view, these issuers operate in a highly competitive landscape with the emergence of 5G technology potentially contributing to the industry's secular decline.

Security selection in the energy industry was beneficial, partly due to Venture Global, a low-cost provider of American liquified natural gas (LNG). The company is developing multiple LNG export facilities in Louisiana using modular, mid-scale liquefaction technology, enabling significantly lower cost of development and shorter development timelines. With its demonstrated track record of contracting and executing construction of large-scale projects that are backed by long-term contracts with solid customers, we believe Venture Global could migrate to investment-grade status as it matures.

The portfolio's investments in cable operators were the primary detractor from relative results, largely due to the holdings of Altice France. In September 2023, the company and bondholders reached an agreement that Altice would sell assets and pay down debt at par. However, in March 2024 the Company aggressively moved pending asset sales to an unrestricted subsidiary and threatened to withhold the sale proceeds from creditors unless bondholders took a haircut to their claims. Formation of bondholder groups may lead to greater disagreement among the company's creditors. Although we believe a bankruptcy filing is not in the best interest of creditors or the company's owner, Patrick Drahi, we cannot rule out the possibility of a coercive debt exchange at severe discounts to par. We continue to monitor the situation closely and believe an agreement under which bondholders will receive a higher value for their holdings than current prices may be achievable.

Our overweight allocation to the media industry held back relative gains, partly due to our higher weight in iHeartMedia (IHRT), the number-one audio company in America based on consumer reach. The company's 1Q24 results met guidance and consensus expectations. However, the 2Q24 outlook was disappointing, which caused the prices of the company's securities to fall. Management indicated that they expect revenue to be flat and EBITDA to decline roughly 22% year-over-year for the first half of the year. However, management noted that, they expect improvements revenue to strengthen as the second quarter progresses, and they remained bullish on the performance tailwind from political spending in the year’s second half.

Outlook

Financial conditions and lending standards have been tightening for over a year as the Fed and most developed market central banks aggressively raised short-term interest rates to combat inflation in 2022 and 2023. The tighter financial conditions have resulted in historically light new issuance, most of which has been secured paper. Low new issuance of debt combined with manageable cash flows have created positive technical conditions in the high yield market. These factors and the need to reinvest coupon payments have resulted in strong demand for new issues, while the absence of significant outflows has supported bond prices in the secondary market.

The economy continues to be resilient which is supportive for sub-investment grade fundamentals. High yield market issuers with credit ratings of BB have been able to refinance debt with near-term maturities. In contrast, lower quality issuers have struggled to refinance upcoming debt maturities in the current high-rate environment. Some issuers have restructured debt in a manner that favors one class of debt over another in their capital structure, while other issuers have defaulted. As a result of the tighter financial conditions, we anticipate the default rate could continue to normalize over the near to medium term toward the high yield market’s long-term average of 3%-4%, although we believe it may remain well below levels seen during previous recessions. Despite mediocre spreads, the asset class continues to provide extremely attractive yields, and we believe investors could be fairly compensated for accepting marginally higher default risk.

We are not aware of two consecutive years of negative returns in the high yield bond market. We believe that years in which the asset class sells off, as it did in 2022, have historically been followed by multi-year periods of positive returns. Given the current high-quality nature of the asset class, which is roughly 60% composed of BB rated bonds, we believe this trend will continue.

Sincerely,

Ellen E. Terry President The New America High Income Fund, Inc.

Rodney Rayburn Vice President T. Rowe Price Associates, Inc.

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