Total Returns for the Periods Ending December 31, 2024
	1 Year	3 Years Cumulative
New America High Income Fund, Inc. (Stock Price and Dividends)*	22.82%	8.07%
New America High Income Fund, Inc. (NAV and Dividends)*	5.71%	4.48%
Credit Suisse High Yield Index	7.94%	9.64%

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

Sources: Credit Suisse and The New America High Income Fund, Inc. Past performance is no guarantee of future results. Total return assumes the reinvestment of dividends. The Credit Suisse High Yield Index (the "Index") is an unmanaged index. Unlike the Fund, the Index has no trading activity, expenses or leverage.

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

Notice to Stockholders:

As previously announced, stockholders of the Fund approved a proposal to reorganize the Fund into the T. Rowe Price High Yield Fund (the "T. Rowe Price Fund"), a separate series of the T. Rowe Price High Yield Fund, Inc. (the "Reorganization") in November 2024. The Reorganization initially expected to close following the close of business of the New York Stock Exchange on Friday, February 21, 2025, is now expected to close on a mutually agreed upon date in writing by the parties, subject to satisfaction of customary closing conditions. Upon the closing of the Reorganization, stockholders of the Fund will become holders of Investor Class shares of the T. Rowe Price Fund.

Market Review

The high yield market returned 7.94% in the year ended December 31, 2024, according to the Credit Suisse High Yield Index.

U.S. Treasury bill yields declined in 2024, as the Federal Reserve reduced the fed funds target rate. Intermediate- and long-term U.S. Treasury yields fluctuated but ultimately increased for the year amid expectations for fewer interest rate cuts in 2025. After starting at 3.88%, the benchmark 10-year U.S. Treasury note's yield ended the year at 4.58%.

U.S. stocks produced strong gains for the second consecutive year, and various equity indexes reached new all-time highs at times. Generally favorable corporate earnings and continuing investor interest in companies expected to benefit from artificial intelligence ("AI") developments buoyed equity markets. Although inflation remained above the Fed's long-term 2% target, the central bank shifted its focus toward supporting the moderating labor market in the second half of the year.

Nonfarm payroll growth rebounded to 227,000 in November, meeting expectations, from an upwardly revised 36,000 tally in October, when hurricanes disrupted hiring. The more volatile household survey, however, showed a loss of 355,000 jobs, causing the unemployment rate to tick up to 4.2%, the highest level since late 2021.

Headline inflation edged up to 2.7% year over year ("YoY") in November, while the core consumer price index held steady at 3.3% for the third consecutive month. Meanwhile, the core personal consumption expenditure inflation report, the Fed's preferred inflation metric, was softer than expected, up 2.8% YoY, matching October's level.

At the Fed's annual Jackson Hole symposium in August, Chairman Jerome Powell said that "the time has come for policy to adjust," though the pace of cuts will "depend on incoming data, the evolving outlook, and the balance of risks." On September 18th, the central bank reduced the fed funds target rate by 50 basis points ("bps"), noting the potential for "additional adjustments." The Fed chairman justified the rate cut by saying the central bank's objective is to "restore price stability without the kind of painful increase in unemployment that has come sometimes with disinflation," suggesting that the central bank is focused on delivering a soft landing.

At its mid-December meeting, the Federal Open Market Committee (the "FOMC") delivered an expected 25 bps rate cut, lowering the Fed's policy rate to the 4.25% to 4.50% range, and bringing the total reduction in rates to 100 bps since the start of the easing cycle in September. However, investors generally viewed the decision as hawkish. Investors were largely focused on changes to the central bank's summary of economic projections, which showed a median forecast for just two rate cuts in 2025, down from four in September. The FOMC raised its estimate for growth and core inflation next year. At his last press conference of 2024, Chair Powell said that the Fed's policy stance is "now significantly less restrictive," allowing policymakers to "be more cautious as we consider further adjustments to our policy rate"

In the final months of the year, investors generally welcomed not only looser monetary policy, but also U.S. election results. Former President Donald Trump defeated Vice President Kamala Harris in the presidential election, and Republican victories in House of Representatives and Senate races gave the party majorities in both chambers of Congress. Market volatility increased, however, amid concerns that President-elect Trump's plans to implement tariffs on various imports could lead to higher inflation, while his expected tax policies could stimulate an already strong economy and hinder the Fed's ability to reduce short-term rates.

High yield capital market activity increased roughly 64% YoY. Gross issuance in 2024 totaled $288.8 billion compared with $175.9 billion in 2023, according to J.P. Morgan. Refinancing activity was the largest category of issuance for the year, accounting for roughly 76% of the total volume. The J.P. Morgan par-weighted default rate decreased to 0.36% from 2.08% at the end of 2023, remaining well below the long-term average of 3%-4%.

Portfolio Review

The portfolio's allocation to bank loans aided relative performance. Loans outperformed all other fixed income asset classes in 2024. Returns were driven by historically high coupons, even as the Fed began its much-anticipated easing cycle. Within the loan asset class, Asurion, the leading provider of mobile protection services, was a notable contributor. We believe that Asurion's dominant market position, solid credit profile, near-term revenue visibility - in part due to the extension of its contract with Verizon through the end of 2027 - and an attractive coupon support our high conviction.

Selection in the services segment added value, partly due to Ascend Learning, which provides online educational content, software, and analytics serving institutions, students, and employers in health care and other licensure-driven professions. The company posted solid 3Q24 results, which were broadly positive across all metrics. While all segments of the company's business performed well, health care was an especially meaningful contributor.

Within the energy industry, Venture Global, a low-cost provider of American liquified natural gas (LNG), was a notable contributor. With its demonstrated track record of contracting and executing the construction of large-scale projects that are backed by long-term contracts with solid customers, Venture Global is rapidly developing into one of the largest LNG companies in the world. Additionally, the company is expected to migrate to investment-grade status as it matures.

Credit selection in the CCC rating tier detracted from relative performance. In 2024 CCC-rated credits outperformed BB-rated bonds by the widest margin since the global financial crisis. The bottom decile of credits-mainly companies engaged in liability management exercise ("LME") situations-have driven a disproportionate share of CCC performance. However, we maintained the portfolio's more conservative CCC positioning, focusing investments mainly on BB and B-rated bonds and making selective investments in lower-quality issues when compelling valuation and risk/reward opportunities arose.

Selection among cable operators weighed on relative results, largely due to the portfolio's holdings of Altice France. After conciliatory meetings with investors in September 2023 to sell assets and pay down debt at par, in March the company aggressively moved pending asset sales to an unrestricted subsidiary and threatened to withhold the proceeds from the asset sales from creditors unless bondholders took a haircut to their claims. Although we believe a bankruptcy filing is not in the best interest of creditors and the company's owner, Patrick Drahi, we cannot rule out a coercive debt exchange at significant discounts to par. The company reported weak 3Q24 results, putting additional pressure on credit metrics.

Our underweight allocation in the other telecommunication (wirelines) segment detracted from relative performance. Despite secular challenges, the growing demand for AI technology has been a major tailwind for the industry as fiber demand from hyperscalers (large-scale data centers and cloud infrastructure companies) continues to accelerate. Hyperscalers need fiber infrastructure to connect to data centers to support their burgeoning AI efforts. This demand will likely require: (1) the buildout of new unique routes and (2) utilization of excess capacity in existing long-haul and metro fiber networks. From a credit perspective, a significant portion of the cash tied to the contract values of these new deals is received upfront—providing a positive working capital cash inflow - which pre-funds growth capital expenditures and provides much-needed liquidity for otherwise cash-constrained companies.

Outlook

After a period of tightening financial conditions and lending standards, the Fed and most developed market central banks began to cut rates as inflation concerns abated from extremely elevated levels. After a slowdown in the previous two years, new issuance in the high yield market increased, however, a majority of the new issuance refinanced existing bonds. With rates falling, but still at high levels, leveraged buyout (LBO) activity slowed significantly in 2024. Combined with steady inflows to the asset class, the lack of new net supply created positive technical conditions in the high yield market which supported prices in the secondary market.

The economy continues to be resilient, which is supportive for sub-investment grade fundamentals. High-quality issuers, which comprise the majority of the high yield asset class, have accessed the primary market and addressed near-term maturities. However, lower-quality issuers, with capital structures not equipped to operate in a high-rate environment, have often resorted to LME or have defaulted. As a result of tighter financial conditions, we expect the high yield bond market default rate to normalize to the long-term average annual default rate of 3-4% over the medium term and potentially exceed the market's long-term average. We believe the increase in the default rate will largely be due to a concentrated handful of issuers with large distressed capital structures that we project will pursue a negotiated LME with bondholders.

Despite the current mediocre yield spread between U.S. Treasuries and high yield bonds, we believe the asset class continues to provide extremely attractive yields. The current yield-to-worst of the high yield asset class is well above its ten-year average. Given the large portion of secured debt and the high-quality nature of the asset class (roughly 60% is composed of BB rated bonds), we view high yield as a compelling source of risk-adjusted returns.

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.