FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

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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Item 1 -  Report to Shareholders

August 12, 2013

Dear Shareholder,

The Fund's net asset value (the "NAV") was $10.33 as of June 30th. The market price for the Fund's shares ended the period at $10.06, representing a market price discount of 2.6%. During the period the Fund's regular monthly dividend remained at $.065 per share. The annualized dividend yield for a common stock purchase at the year-end 2012 price of $10.45 was 7.46%. As always, 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 and operating expenses among other factors.

As of June 30th, the Fund had borrowed $100 million through its credit facility (the "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 1.09%. While the spread between the cost of leverage and the portfolio's current yield at the end of the period was attractive, there is no guarantee that it will remain at this level. As discussed below in the market and strategy review provided by our investment adviser, the current yield of the high yield market as measured by the J.P. Morgan High Yield Index reached a record low during the first half of the year, before rebounding. 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.

Sources: Credit Suisse, Citigroup, Lipper Inc., 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 and Citigroup 10 Year Treasury Index are unmanaged indices. Unlike the Fund, the indices have no trading activity, expenses or leverage.

*  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.

Market Review

The high yield market began the year on a high note, carrying over the positive momentum from the fourth quarter of 2012. However, sentiment shifted in the latter part of the second quarter, leading to negative absolute returns for the quarter. The combined result was a modest gain of 1.52% for the first half as measured by the Credit Suisse High Yield Index. The decline of the high yield market in May and June continues a trend of second-quarter weakness that this asset class has experienced every year since 2008. Although there is no guarantee this trend will continue, in four of those five years, high yield bonds bounced back with positive third-quarter performance as value-conscious and credit-focused investors bought on weakness.

The change in investor sentiment that took hold as we approached mid-year was partly driven by Fed tapering concerns. Although the central bank did not adjust its policy stance, a misinterpretation of Fed Chairman Ben

Bernanke's comments spawned a so-called taper tantrum in which market participants quickly adjusted their expectations regarding the future of Fed asset purchases. U.S. Treasury yields soared to their highest level in nearly two years—pressuring the entire fixed income market—in response to the Federal Reserve more clearly defining the framework for normalizing monetary policy.

In addition, a heavy new issue environment in May likely contributed to the pullback as the market was saturated with new deal terms that mostly favored bond issuers—including historically low coupons. A record-setting $52.3 billion of new high yield bonds priced in May, surpassing the previous mark of $48.4 billion set in January 2013. We believe the heavy supply drained portfolio managers' cash positions, leading to selling pressure as high yield funds experienced redemptions. Industry outflows were modest in May but hit an all-time high in June.

As market volatility increases, buy-side investors should be able to negotiate more favorable deal terms—such as better covenants or higher yields—on new issues. For example, investors had little tolerance for the original pricing and structure of the Valeant Pharmaceuticals deal that was issued to finance its acquisition of Bausch & Lomb. After receiving pushback related to rising-rate concerns, the underwriter shortened the maturities on this sizable deal and increased the coupon. While it is uncertain if investor pushback will continue to gain traction, the example above is a welcomed development as issuers seemed to have the upper hand in most transactions year-to-date.

Importantly, we believe the sell-off was unrelated to the quality of the companies in the below investment-grade universe as fundamentals remained strong and defaults were largely benign. The par-weighted default rate for the J.P. Morgan Global High Yield Index ended the month at 1.09%.

Strategy Review

High yield valuations became somewhat stretched following several quarters of strong performance, leading us to maintain a heavy degree of discipline with respect to playing new issues as we saw little value among new offerings. Our strategy worked well from April into the third week of May as gains in the portfolio's existing holdings were substantial enough to counteract the negative effects of the late-period sell-off. For example, Rite Aid represented a top holding and our high conviction was reflected across three of the company's bond issues. The U.S. drugstore chain has executed a significant operational turnaround over the last few years, leading to solid earnings. Moreover, this issuer's liquidity and maturity profile are favorable, and credit metrics continue to improve, which has resulted in nice gains in the company's bonds. Additionally, we were able to take profits in names like MBIA, Radio Shack and Clear Channel, holdings that have recovered smartly off their lows and delivered compelling gains.

As has been a fairly consistent pattern over recent years, May brought with it a high degree of volatility that carried over into June. The J.P. Morgan Global High Yield Index recorded an all-time low yield of 5.24% in the first part of the month but by late June yields had surged to 7.20%. The Fund was not immune to this adverse move, with BB holdings suffering the greatest degree of volatility. Many securities in this ratings category declined 6 to 10 points in price. The Fund's holdings in the information technology sector saw particularly steep declines. Bonds for NCR, the maker of ATMs, were issued in May with a 4.625% coupon and traded as high as $102 shortly after, but by June had declined to $94.75 as rate fears took hold. BB-rated names like Vimplecom and Eldorado Goldcorp also saw significant markdowns, but we remain constructive on the Fund's positions in these names.

The energy sector also proved to be challenging with many bonds in that industry suffering meaningful declines in the June sell-off. As many of the credits are rated BB, they suffered not only from poor industry fundamentals during the first half, but also a high degree of rate sensitivity. El Paso Holdings bonds, for example, dropped from a range around $118 to as low as $103 in the June softness. We like the credit and attribute the negative price action to the move in rates. We remain underweight the sector and hope that a conservative posture for this industry will help mitigate some of the rate volatility.

On a positive note, the sell-off in the secondary market provided us with opportunities to invest in names we believe are fundamentally sound at a discount or to purchase recently issued bonds that were difficult to source due to overwhelming demand. Our recent credit meeting discussions have centered on these potential secondary market opportunities, with a focus on higher-quality securities that, in our view, have experienced outsized underperformance and spread widening. We also initiated positions in select high-quality emerging markets companies—such as Marfrig and Israel Electric—that look to have become oversold as many investors focused on risk reduction.

Outlook

Similar to the past several years, the high yield market experienced a second-quarter correction. A combination of excessive new supply, capital outflows, and rising U.S. Treasury yields have pressured the asset class. Corrections are normal and healthy, particularly when valuations arguably reach stretched levels. Moreover, we view the sell-off as having been largely driven by technicals and unrelated to the quality of the companies in the high yield universe.

With below investment-grade yields and credit spreads moving higher, we believe the market will eventually stabilize as value-conscious investors reallocate and buy on weakness. We think high yield issuers are fundamentally sound and we expect defaults to remain low over the next two years. A meaningful portion of new issuance in the current cycle has been refinancing related, leading to lower debt costs and a meaningful reduction in near-term maturities.

While our investment team primarily focuses on credit fundamentals and less on the macro environment, we have a constructive view on the U.S. economy. We expect the U.S. to continue on a modest growth trajectory for the foreseeable future, creating a favorable operating environment for most high yield companies. We also think uncertainty around the timing of Fed tapering and monetary policy normalization—given the stated linkage to employment market conditions—could cause additional volatility in the Treasury market. We believe the portfolio will hold up well in relative terms in a rising-rate environment given its low duration and high level of diversity across industries.

From a diversification standpoint, we continue to methodically expand our investment opportunity set, evaluating both emerging markets and European opportunities. Our investment team is afforded the unique opportunity to leverage various independent insights that arise from the firm's global research platform as we broaden our scope outside of traditional U.S. high yield bonds. Our efforts here do not reflect a change in approach and will be prudent, incremental and opportunistic, and are subject to the Fund's non-fundamental limitation restricting non-dollar denominated securities principally traded in foreign markets to 10% of total assets.

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,

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.

The New America High Income Fund, Inc.

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2013 (Unaudited) (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2013 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2013 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2013 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2013 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2013 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2013 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2013 (Unaudited) — Continued (Dollar Amounts in Thousands)