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, 2014

Dear Shareholder,

The Fund's net asset value (the "NAV") was $11.05 as of June 30th. The market price for the Fund's shares ended the period at $10.04, representing a market price discount of 9.1%. 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 2013 price of $9.65 was 8.1%.

High yield bond investors have enjoyed several years of attractive total returns. However, the very low interest rate environment of recent years has resulted in coupons on new issue high yield bonds at historically low levels. While the yield spread between U.S. Treasury securities and high yield bonds, as measured by the J.P. Morgan Global High Yield Index, remains attractive, it is well below the long term average yield spread that investors have required in the past. As discussed in detail below, the Fund's investment advisor believes there are currently fewer attractive investment opportunities in the U.S. high yield bond market than there were earlier in this market cycle. There are positive underpinnings to the market, but valuations are relatively high, coupons are low, and the terms of some new issues are not as favorable to the investor as they are to the issuer. In response to these market conditions, the Fund reduced its leverage and carried more cash during the period than is typical, with the consequence that the Fund's portfolio generated less income during the first half of the year compared with earlier periods.

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, how fully invested the portfolio is and operating expenses among other factors. 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.

As of June 30th, the Fund had borrowed $90 million through its credit facility (the "Facility") with the Bank of Nova Scotia, a reduction of $10 million from year-end. 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 1.05%. 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. 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

High yield bonds posted solid returns during the six month period as several lingering tailwinds continued to persist in powering results for the asset class, including limited defaults, generally healthy earnings and free cash flow on the part of issuers, and continued low financing costs. Despite the predominantly favorable climate, a recent isolated event, the default of TXU, led to an uptick in the overall default rate.

High yield bonds are enjoying a meaningful amount of technical support as investors' persistent search for yield continues to drive capital into the asset class. This appetite has pushed below investment-grade bond yields to historically low levels and stretched valuations to some extent. From a credit spread perspective, the average spread-to-worst for the J.P. Morgan Global High Yield Index, a measure of the differential in yields between the average below investment grade bond and comparable Treasuries, tightened to 420 basis points during the second quarter, roughly 180 basis points inside of the 20-year average. A basis point equates to one one-hundredth of a percentage point. While still well above the all-time low of 263 basis points achieved in June 2007, we believe that further substantial spread tightening is unlikely for the broad high yield market in 2014. Moreover, the par-weighted average price of this index was slightly above $105 at the end of June—a significant premium that suggests muted capital appreciation potential In the near term. Even with current trading levels suggesting low expectations for further capital appreciation, yields on below investment-grade corporate bonds compare favorably with most fixed income sectors, providing an attractive carry in a fundamentally stable market.

Returns were positive across all major industries and credit quality segments in the second quarter and for the first half, with higher-rated securities edging out CCCs in the second quarter, but slightly under-performing their lower quality counterparts over the first six months. Lingering concerns about the pace of economic growth and questions about the timing and pace of Fed rate policy gained momentum, particularly in the second quarter, leading to another leg down in U.S. Treasury yields. This rate effect was likely the biggest single contributing factor behind the gains in higher-quality, longer-duration bonds relative to the lower-quality CCC-rated category.

According to J.P. Morgan, $121.2 billion of new high yield bonds came to the market in the second quarter, approximately $30 billion more than the previous quarter. Although year-to-date issuance is behind last year's record-setting pace, a substantial pickup in merger and acquisition (M&A) financing helped narrow the difference. Underwriters continued to test the limits on new deal terms, keeping our investment team highly cautious and selective. On the other hand, issuers have generally allocated proceeds from recent debt offerings in a prudent manner, with a keen focus on interest expense and leverage.

As expected, Energy Future Holdings (formerly known as TXU) filed for Chapter 11 in April. This U.S. power producer was the subject of the largest-ever leveraged buyout in 2007 and now represents the largest below investment-grade default in history, affecting nearly $40 billion of loans and bonds. J.P. Morgan's par-weighted U.S. high yield bond default rate increased significantly from 0.61% to 2.15% in April as a result, but the market reaction was largely muted as this event was well telegraphed. Additionally, the default rate is expected to remain relatively stable for the rest of the year due to a minimal amount of near-term debt maturities. The Energy Future Holdings organizational structure is highly complex, with various underlying holding companies. This company's loan and bond prices vary widely based on capital structure position and claims on assets, with some securities still trading above par value even after the bankruptcy filing.

Strategy Review

Merger and acquisition activity has picked up in intensity and we expect it to remain an important theme in the months ahead. There have been several recent cases of high yield companies initiating complex acquisitions that are strategic in nature—especially in the broad media space. Many media companies are making acquisitions to diversify their service offerings and/or broaden their geographic presence. We expect this to continue in the medium term and have constructed significant overweight allocations in the cable, wireless communications, and broadcasting sectors from a bottom-up perspective to take advantage of this trend.

In terms of noteworthy activity in the media space, affiliated European cable providers Numericable and Altice recently priced the largest-ever below investment-grade debt deal to finance an acquisition of SFR from Vivendi. On a combined basis, this multi-tranche, multi-currency new deal was $16.7 billion in size, according to J.P. Morgan—more than twice the previous record. Each tranche was several times oversubscribed and subsequently appreciated in the secondary market due to overwhelming demand. The Fund participated in this new deal in meaningful size, increasing the portfolio's overall exposure to these names. We have maintained a favorable view on both Numericable and Altice based on their individual merits for quite some time, although our investment thesis partly hinged on their capacity to unlock value through prudent acquisitions.

SFR is one of the largest mobile and fixed-line telecommunications operators in France, allowing Numericable and Altice to bundle additional service offerings in a key market. While it may take time for the synergies to be recognized, our high yield credit analysts expect this transaction to boost the free cash flow generation and credit profiles of these affiliated cable names. Furthermore, because of the way this deal was structured—with an equity component in addition to debt financing—leverage and interest coverage remained at reasonable levels.

With valuations somewhat stretched for many U.S. noninvestment-grade bonds—particularly higher-rated issues—we have methodically expanded our opportunity set to cover European high yield and emerging markets credits. Importantly, our high yield team continues to leverage the T. Rowe Price's global research platform to its fullest extent to uncover attractive investments outside the U.S.

Outlook

With a year-to-date return of nearly 6%, as measured by the Credit Suisse High Yield Index, the asset class is outpacing expectations for coupon-like performance in 2014. We expect capital appreciation potential is limited for the remainder of this year, particularly in the U.S. where most bonds are trading at a premium to par value.

Technical factors have pushed valuations to less compelling levels in certain segments of the market, namely higher-rated bonds. Strong demand for new issues is setting the stage for issuer-friendly deal structures and pricing, increasing the importance of fundamental credit analysis and selectivity. Along these lines, a meaningful number of domestic, BB rated new issues have been priced with coupons in the 4% area. This presents a major imbalance between upside potential and downside risk for the issuers, many of which we do not expect are ever likely to reach investment grade. Higher-rated, longer-duration bonds also appear to be vulnerable to a potential sell-off in U.S. Treasuries. With this in mind, we are maintaining a cautious view on the higher-quality segment of the market.

Although valuations are somewhat stretched, underlying high yield fundamentals remain sound. Most issuers have focused on improving their balance sheets over the past several years rather than re-leveraging, and taken

advantage of abundant liquidity and low capital costs. Robust equity markets have also contributed, allowing many high yield companies to issue stock, including numerous IPOs of leveraged buyout-related names. A portion of the proceeds from these IPOs is often used to pay down debt.

Following a surge in refinancing activity over the past several years, many issuers have pushed out near-term maturities for an extended period. Based on analysis from J.P. Morgan, roughly $86 billion of high yield bonds are set to mature in 2014 and 2015, representing less than 5% of the total market. The limited amount of bond maturities over the next two years is highly supportive of the low default environment.

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.

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

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2014 (Unaudited) (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2014 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2014 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2014 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2014 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2014 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2014 (Unaudited) — Continued (Dollar Amounts in Thousands)

The New America High Income Fund, Inc.

Schedule of Investments — June 30, 2014 (Unaudited) — Continued (Dollar Amounts in Thousands)