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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-05399

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 Street 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:	December 31

Date of reporting period:		July 1, 2006 to December 31, 2006

Item 1 - Report to Shareholders

February 1, 2007

Dear Fellow Shareholder,

We are pleased to report to our fellow shareholders on the results of The New America High Income Fund, Inc. (the "Fund") for the year ended December 31, 2006. The Fund and the high yield market turned in a fourth consecutive year of positive performance.

Highlights of 2006 include:

• The Fund's monthly dividend continued unchanged at $.0175 per share. The regular monthly dividend has been at this level since February 2003. Of course, in the future, the dividend may fluctuate, as it has in the past, depending on portfolio results, market conditions and other factors. For a number of years, in January in lieu of a regular monthly distribution, the Fund has paid a special dividend, which has varied depending upon the amount of undistributed net investment income available at year-end. The special dividend paid in January, 2007 was $.021 per share. The total distributions paid to record date shareholders in 2006 were $.2135 per share.

• The net asset value (the "NAV") was relatively stable for the year, increasing from $2.13 as of December 31, 2005 to $2.19 at the end of 2006.

• The market price for the Fund's shares improved from $2.03 at the beginning of the year to close at $2.26 in trading on the New York Stock Exchange on December 31, 2006, which represented a market price premium of 3.2% over the Fund's NAV at year-end. Annualizing the Fund's monthly dividend of $.0175 during the year, at the opening stock price on January 2, 2006 of $2.10, would have produced a dividend yield of 10%.

• Over the one and three year periods ended December 31, 2006, the Fund's total return has outperformed the Lipper Closed-End Fund Leveraged High Yield universe, the Credit Suisse High Yield Index, and the Citigroup 10 Year Treasury Index.

While the high yield market has provided positive returns in recent years, none of us knows how long the favorable market conditions will continue until there is a correction or a downturn due to economic or other external factors. We are shareholders of a Fund with two major types of risk. The Fund's portfolio of high yield corporate bonds has more credit risk than investment grade debt. In an effort to mitigate the credit risk, T. Rowe Price Associates, Inc. ("TRP"), the Fund's investment advisor, has followed a strategy of investing in a highly diversified, relatively high quality portfolio of high yield bonds.

The Fund's leveraged capital structure is a second major source of risk. The use of leverage, in the form of the Fund's Auction Term Preferred Stock (the "ATP"), increases the volatility of the NAV. If the high yield bond market declines significantly, the Fund may have to reduce the leverage and reduce the common stock dividend. In favorable market conditions, the leverage enables the Fund to pay a higher common stock dividend than is possible with an unleveraged capital structure. The ATP dividend resets monthly in an auction procedure and has generally floated around one month LIBOR (the London Interbank Offered Rate), a widely used money market reference rate. Fund management entered into an interest rate swap in November 2004 in anticipation of rising interest rates to hedge against an expected increase in the ATP dividend. Under the terms of the swap agreement, the Fund pays a fixed rate of 3.775% on a notional amount equal to the amount of ATP outstanding. The Fund receives a payment that fluctuates with one month LIBOR. As a result, to the extent LIBOR exceeds 3.775%, as it did during the period, the Fund receives the difference. If LIBOR is less than 3.775%, the Fund pays the difference to the swap counterparty. The swap agreement terminates in November 2009. Approximately 23% of the Fund's 2006 taxable income was attributable to the Fund's leveraged structure and the Fund's interest rate swap.

	Total Returns for the Periods Ended December 31, 2006
	1 Year			3 Years Cumulative
New America High Income Fund (Stock Price and Dividends)*		22.82	%		41.96	%
New America High Income Fund (NAV and Dividends)		13.54	%		35.53	%
Lipper Closed-End Fund Leveraged High Yield Average		12.89	%		35.36	%
Credit Suisse High Yield Index		11.92	%		28.13	%
Citigroup 10 Year Treasury Index		1.38	%		8.49	%

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

Past performance is no guarantee of future results. Total return assumes the reinvestment of dividends.

* 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.

Below, the Fund's investment advisor, T. Rowe Price Associates, Inc., reviews the performance of the high yield market and the Fund in 2006 and the outlook going forward.

High Yield Market Update

As measured by the Credit Suisse High Yield Index, the high yield market earned a total return of 11.92% return for the year. In our view, this result is impressive relative to expectations at the beginning of the year and was in part driven by a robust new issue calendar and continued healthy credit environment. Investors eagerly absorbed some of the largest deals in the history of the high yield asset class, indicating ongoing strong demand for below investment grade bonds. Private equity sponsored buyouts accounted for the most prominent transactions, and we expect this trend to continue in 2007.

Current valuations for high yield bonds have led to considerable debate regarding prospects for 2007. The pessimists argue that the yield spread, a measure of the differential in yield for the high yield asset class versus comparable-duration Treasury obligations, which ended the year around 300 basis points, leaves little potential for another good year of performance and provides investors precious little in the way of compensation for bearing the risks of this asset class. Optimists have countered that JP Morgan's 12 month rolling default rate for high yield issues came in at less than 1% in 2006 — the lowest level seen in many years. With high yield issuers largely demonstrating solid balance sheets, ample liquidity, and healthy earnings and cash flow, these high yield market bulls believe defaults will not go much higher over the next twelve months. Prospects for the U.S. economy factor heavily into this discussion, and uncertainty has also arisen on the direction of interest rates and the strategy of the Federal Reserve Bank.

Portfolio Update

We held a constructive outlook on high yield bonds into the final months of 2006 and chose to manage opportunistically as the year came to a close. Our participation in the new issue market was significant, and we added about 20 new positions to the portfolio during the fourth quarter. One of the most important deals that we purchased was HCA, which issued high yield bonds to fund the company's leveraged buyout. The company's decision to go private, announced early in the third quarter, led to meaningful losses for holders of HCA's existing bonds, including the Fund, and created additional collateral damage in the market as other health care issuers' bonds traded off on news of the deal. Buying the deal was the right decision as the new HCA bonds appreciated over 6% by year-end, allowing the Fund to recoup about half the losses it incurred in the existing HCA position when the going private transaction was announced.

Other notable purchases included Cricket Communications and MetroPCS, two new wireless services entrants targeting lower income consumers. Both companies' bonds appreciated 5% from issue, with coupons exceeding 9%. We worked closely with our firm's equity analysts on these ideas, as both companies have announced initial public offerings and are executing well. Another strong performer was a new issue from Goodyear Tire, and this purchase continued our theme of capitalizing on positive developments in the auto sector. For the year, our auto

industry allocation earned nearly 20%, with GM and Ford being the top two contributors to performance in 2006. The Fund ended the year with about 6% exposure to high yield bank debt (also known as syndicated loans) and floating rate notes. Generally, bank loans offer investors greater downside protection versus bonds of the same issuer and carry variable interest rates that re-set periodically based on the LIBOR or some other reference instrument. In the current market, with the spread for high yield issues as tight as we noted earlier, we find high yield bank debt to be an attractive alternative to high yield bonds. While bank loans will likely offer less upside potential than their bond counterparts, they should help protect the Fund's principal. We view the prevailing climate as an attractive time to trade a portion of the Fund's bond exposure for the greater credit and interest rate protection and attractive yields available in select bank debt issues.

Overall, strong fundamentals in telecommunications, autos, technology, forest products and service companies led to double digit returns in each of these sectors for 2006. We intentionally avoided overweight exposures in several areas of the market where we lagged the benchmark on a relative basis in 2006, but we believe ultimately should help us avoid losses down the road. Bonds of homebuilders, for example, enjoyed a big bounce in the fourth quarter, even though fundamentals here remain challenging and the jury is still out on the recovery of this sector. We were also cautious in retailing, where private equity sponsors were very busy in taking companies private. The new issues in the retail sector, with very generous coupons, all performed well, but long term, we believe this industry is not well-suited to absorb the extreme amounts of financial leverage associated with these going private transactions.

Outlook

Repeating 2006's absolute returns will be a difficult achievement, and would likely require taking on an inordinate amount of risk. Nevertheless, we remain cautiously optimistic on the high yield market for the new-year, and are hopeful for another twelve months of reasonable market returns. We expect that corporate earnings growth will slow in 2007, but we are more focused on the cash flow generating capability, and the reasonably conservative financial positions, as measured by relatively low levels of long term debt, which we continue to observe at many of the companies in the Fund's portfolio.

Thank you for your continued interest in the Fund.

Sincerely,



Robert F. Birch President The New America High Income Fund, Inc.				Mark Vaselkiv Vice President T. Rowe Price Associates, Inc.



Ellen E. Terry Vice President The New America High Income Fund, Inc.				Paul Karpers Vice President T. Rowe Price Associates, Inc.

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 the Adviser 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.

The New America High Income Fund, Inc.

Industry Summary December 31, 2006	As a Percent of Total Investments
Telecommunications		11.04	%
Oil and Gas		9.95	%
Broadcasting and Entertainment		8.09	%
Utilities		7.68	%
Electronics		7.30	%
Containers, Packaging and Glass		5.63	%
Printing and Publishing		5.46	%
Automobile		5.27	%
Healthcare, Education and Childcare		4.41	%
Diversified/Conglomerate Service		4.03	%
Finance		3.37	%
Hotels, Motels, Inns and Gaming		3.32	%
Retail Stores		3.04	%
Mining, Steel, Iron and Non-Precious Metals		2.66	%
Building and Real Estate		2.61	%
Chemicals, Plastics and Rubber		2.51	%
Personal, Food and Miscellaneous Services		2.00	%
Aerospace and Defense		1.91	%
Beverage, Food and Tobacco		1.52	%
Leisure, Amusement and Entertainment		1.29	%
Diversified/Conglomerate Manufacturing		1.24	%
Furnishings, Housewares, Durable Consumer Products		0.79	%
Personal Non-Durable Consumer Products		0.63	%
Machinery		0.61	%
Ecological		0.58	%
Textiles and Leather		0.42	%
Cargo Transport		0.37	%
Grocery		0.26	%
Farming and Agriculture		0.25	%
Personal Transportation		0.21	%
Short-Term Investments		1.55	%
		100.00	%
Moody's Investors Service Ratings December 31, 2006 (unaudited)	As a Percent of Total Investments
Short Term Prime-1		1.55	%
Baa3		0.77	%
Ba1		6.53	%
Ba2		9.95	%
Ba3		9.49	%
Total Ba		25.97	%
B1		16.03	%
B2		22.99	%
B3		18.02	%
Total B		57.04	%
Caa1		9.47	%
Caa2		1.93	%
Caa3		0.10	%
Total Caa		11.50	%
Unrated		1.99	%
Equity		1.18	%
Total Investments		100.00	%

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — 151.15% (d)
Aerospace and Defense — 3.02%
$	1,100	BE Aerospace, Inc., Senior Subordinated Notes, 8.875%, 05/01/11	B3	$	1,141
	1,625	GenCorp Inc., Senior Subordinated Notes, 9.50%, 08/15/13	B1		1,718
	1,225	L3 Communications Corp., Senior Subordinated Notes, 6.375%, 10/15/15	Ba3		1,216
	775	Moog, Inc., Senior Subordinated Notes, 6.25%, 01/15/15	Ba3		756
	600	Sequa Corporation, Senior Notes, 9%, 08/01/09	B2		640
	825	TransDigm Inc., Senior Subordinated Notes, 7.75%, 07/15/14	B3		850
					6,321
Automobile — 6.57%
	800	Accuride Corporation, Senior Subordinated Notes, 8.50%, 02/01/15	B3		772
	800	ADESA, Inc., Senior Subordinated Notes, 7.625%, 06/15/12	B1		826
	600	Cooper Standard Automotive, Inc., Senior Subordinated Notes, 8.375%, 12/15/14	Caa1		476
	4,350	Ford Motor Credit Company, Senior Notes, 9.824% 04/15/12	B1		4,620
	356	Ford Motor Company, Senior Notes, 4.25%, 12/15/36	Caa1		381
	1,850	General Motors Corporation, Senior Notes, 8.375%, 7/15/33	Caa1		1,711
	300	The Goodyear Tire & Rubber Company, Senior Notes, 7.857%, 08/15/11	B3		302
	1,475	The Goodyear Tire & Rubber Company, Senior Notes, 8.675%, 12/01/11 (g)	B2		1,519
	775	IAAI Finance Corp., Senior Notes, 11%, 04/01/13	Caa1		868

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
$	1,175	Lear Corporation, Senior Notes, 8.75%, 12/01/16 (g)	B3	$	1,138
	1,100	Tenneco Inc., Senior Subordinated Notes, 8.625%, 11/15/14	B3		1,126
					13,739
Beverage, Food and Tobacco — 2.40%
	925	B&G Foods, Inc., Senior Notes, 8%, 10/01/11	B1		937
	1,025	Del Monte Corporation, Senior Subordinated Notes, 8.625%, 12/15/12	B2		1,079
	525	NPI Merger Corporation, Senior Notes, 9.40% 10/15/13 (g)	B3		541
	775	NPI Merger Corporation, Senior Subordinated Notes, 10.75%, 04/15/14 (g)	Caa1		847
	1,050	Reynolds American, Inc., Senior Notes, 7.25%, 06/01/13	Ba3		1,097
	475	Reynolds American, Inc., Senior Notes, 7.625%, 06/01/16	Ba3		508
					5,009
Broadcasting and Entertainment — 12.53%
	1,650	Allbritton Communications Company, Senior Subordinated Notes, 7.75%, 12/15/12	B1		1,667
	75	AMC Entertainment, Inc., Senior Subordinated Notes, 8%, 03/01/14	B3		75
	1,350	AMC Entertainment, Inc., Senior Subordinated Notes, 11%, 02/01/16	B3		1,515
	325	Barrington Broadcasting Group, LLC, Senior Subordinated Notes, 10.50%, 08/15/14 (g)	B3		330
	425	Canadian Satellite Radio, Senior Notes, 12.75%, 02/15/14	(e)		428
	2,475	Charter Communications Operating, LLC, Senior Secured Notes, 8%, 04/30/12 (g)	B3		2,568
	250	Cinemark, Inc., Senior Discount Notes, 9.75%, 03/15/14 (b)(g)	B3		214

The accompanying notes are an integral part of these financial statements.
5

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
$	2,125	Cinemark, Inc., Senior Discount Notes, 9.75%, 03/15/14 (b)	B3	$	1,822
	775	Cinemark USA, Inc., Senior Subordinated Notes, 9%, 02/01/13	B2		818
	1,000	CSC Holdings, Inc., Senior Notes, 7.25%, 07/15/08	B2		1,009
	1,303	DIRECTV Holdings, LLC, Senior Notes, 8.375%, 03/15/13	Ba3		1,355
	500	EchoStar DBS Corporation, Senior Notes, 6.625%, 10/01/14	Ba3		487
	775	EchoStar DBS Corporation, Senior Notes, 7%, 10/01/13	Ba3		774
	175	Fisher Communications, Inc., Senior Notes, 8.625%, 09/15/14	B2		186
	850	Gray Television, Inc., Senior Subordinated Notes, 9.25%, 12/15/11	B1		889
	195	Insight Midwest, L.P., Senior Notes, 9.75%, 10/01/09	B2		199
	500	Intelsat Subsidiary Holding Company, Ltd., Senior Notes, 8.25%, 01/15/13	B2		511
	800	Intelsat (Bermuda), Ltd., Senior Notes, 10.484%, 01/15/12	B2		812
	475	Kabel Deutschland GmbH, Senior Notes, 10.625%, 07/01/14	B2		520
	1,325	Liberty Media Corporation, Senior Notes, 4%, 11/15/29	Ba2		866
	625	Nexstar Broadcasting, Inc., Senior Subordinated Notes 7%, 01/15/14	B3		592
	1,200	Nexstar Holdings, Inc., Senior Notes, 11.375%, 04/01/13 (b)	Caa1		1,077
	924	Panamsat Corp., Senior Notes, 9%, 08/15/14	B2		977
	500	Quebecor World, Inc., Senior Notes, 9.75%, 01/15/15 (g)	B2		504
	250	Rainbow National Services LLC, Senior Notes, 8.75%, 09/01/12 (g)	B2		263

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
$	500	Rogers Cable Inc., Senior Secured Notes, 6.75%, 03/15/15	Ba2	$	518
	300	Shaw Communications, Inc., Senior Notes, 8.25%, 04/11/10	Ba2		319
	950	Sinclair Broadcast Group, Inc., Senior Subordinated Notes, 8%, 03/15/12	B1		981
	1,075	Sinclair Broadcast Group, Inc., Senior Subordinated Notes, 8.75%, 12/15/11	Ba3		1,123
	875	Sirius Satellite Radio, Inc., Senior Notes, 9.625%, 08/01/13	Caa1		861
	250	Videotron Ltee., Senior Notes, 6.375%, 12/15/15	Ba2		245
	825	Videotron Ltee., Senior Notes, 6.875%, 01/15/14	Ba2		833
	850	XM Satellite Radio, Inc., Senior Notes 9.75%, 05/01/14	Caa1		846
					26,184
Building and Real Estate — 4.12%
	225	AMH Holdings, Inc., Senior Discount Notes, 11.25%, 03/01/14 (b)	Caa2		152
	625	B.F. Saul Real Estate Investment Trust, Senior Secured Notes, 7.50%, 03/01/14	B2		637
	1,250	Building Materials Corporation of America, Senior Notes, 7.75%, 08/01/14	B3		1,131
	1,050	Collins & Aikman Floorcoverings, Inc., Senior Subordinated Notes, 9.75%, 02/15/10	B3		1,076
	475	FelCor Lodging Limited Partnership, Senior Notes, 8.50%, 06/01/11	Ba3		505
	100	Host Marriott, L.P., Senior Notes, 6.375%, 03/15/15	Ba1		99
	2,700	Host Marriott, L.P., Senior Notes, 6.75%, 06/01/16	Ba1		2,707
	550	Host Marriott, L.P., Senior Notes, 7.125%, 11/01/13	Ba1		560
	875	Texas Industries, Inc., Senior Notes, 7.25%, 07/15/13	Ba3		892
	500	Ventas Realty, Limited Partnership, Senior Notes, 6.50%, 06/01/16	Ba2		513

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
$	325	Ventas Realty, Limited Partnership, Senior Notes, 6.75%, 06/01/10	Ba2	$	335
					8,607
Cargo Transport — .59%
	725	American Commercial Lines LLC, Senior Notes, 9.50%, 02/15/15	B3		802
	400	TFM, S.A. de C.V., Senior Notes, 9.375%, 05/01/12	B3		427
					1,229
Chemicals, Plastics and Rubber — 3.96%
	1,490	BCP Caylux Holdings Luxembourg S.C.A., Senior Subordinated Notes, 9.625%, 06/15/14	B3		1,643
	550	Hercules, Incorporated, Senior Subordinated Notes, 6.75%, 10/15/29	Ba3		542
	1,225	Huntsman International LLC, Senior Subordinated Notes, 7.875%, 11/15/14 (g)	B3		1,231
	1,175	Ineos Group Holdings, plc, Senior Notes, 8.50%, 02/15/16 (g)	B2		1,128
	1,000	INVISTA S.A.R.L., Senior Notes 9.25%, 05/01/12 (g)	B1		1,070
	500	Koppers Inc., Senior Secured Notes, 9.875%, 10/15/13	B2		544
	1,300	Nell AF S.a.r.l. Senior Notes, 8.375%, 08/15/15 (g)	B2		1,336
	525	PolyOne Corporation, Senior Notes, 10.625%, 05/15/10	B2		556
	213	Rockwood Specialties Group, Inc., Senior Subordinated Notes, 10.625%, 05/15/11	B3		227
					8,277
Containers, Packaging and Glass — 8.90%
	825	Abitibi-Consolidated, Inc., Senior Notes, 8.55%, 08/01/10	B2		792
	650	Ball Corporation, Senior Notes, 6.875%, 12/15/12	Ba1		662
	575	Berry Plastics Holding Corporation, Senior Secured Notes, 8.875%, 09/15/14 (g)	B2		588

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
$	350	Berry Plastics Holding Corporation, Senior Secured Notes, 9.235%, 09/15/14 (g)	B2	$	355
	950	Boise Cascade, LLC, Senior Subordinated, Notes, 7.125%, 10/15/14	B2		921
	775	BWAY Corporation, Senior Subordinated Notes, 10%, 10/15/10	B3		814
	525	Covalence Specialty Materials, Senior Subordinated Notes, 10.25%, 03/01/16 (g)	B3		480
	275	Domtar Inc., Senior Notes, 5.375%, 12/01/13	B2		249
	525	Domtar Inc., Senior Notes, 7.875%, 10/15/11	B2		545
	100	Domtar Inc., Senior Notes, 9.50%, 08/01/16	B2		111
	375	Georgia-Pacific Corporation, Senior Notes, 7%, 01/15/15 (g)	Ba3		374
	1,300	Georgia-Pacific Corporation, Senior Notes, 7.125%, 01/15/17 (g)	Ba3		1,297
	525	Georgia-Pacific Corporation, Senior Notes, 7.70%, 06/15/15	B2		537
	525	Georgia-Pacific Corporation, Senior Notes, 8.125%, 05/15/11	B2		550
	175	Graham Packaging Company, Senior Notes, 8.50%, 10/15/12	Caa1		177
	450	Graphic Packaging International Inc., Senior Notes, 8.50%, 08/15/11	B2		467
	325	Graphic Packaging International Inc., Senior Subordinated, Notes, 9.50%, 08/15/13	B3		344
	350	Greif Brothers Corporation, Senior Subordinated Notes, 8.875%, 08/01/12	Ba3		367
	350	JSG Funding PLC, Senior Subordinated Notes, 7.75%, 04/01/15	Caa1		336
	1,410	MDP Acquisitions Plc, Senior Notes, 9.625%, 10/01/12	B3		1,496
	125	NewPage Corporation, Senior Secured Notes, 10%, 05/01/12	B2		132

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
$	625	NewPage Corporation, Senior Secured Notes, 11.621%, 05/01/12	B2	$	675
	475	NewPage Corporation, Senior Subordinated Notes, 12%, 05/01/13	B3		504
	700	Norske Skog Canada Ltd., Senior Notes 7.375%, 03/01/14	B2		664
	1,175	Owens-Brockway Glass Container, Inc., Senior Secured Notes, 8.75%, 11/15/12	Ba2		1,243
	1,225	Owens-Brockway Glass Container, Inc., Senior Secured Notes, 8.875%, 02/15/09	Ba2		1,253
	375	Silgan Holdings Inc., Senior Subordinated Notes, 6.75%, 11/15/13	B1		367
	325	Stone Container Corporation, Senior Notes, 8.375%, 07/01/12	B2		323
	700	Stone Container Finance Company of Canada, Senior Notes, 7.375%, 07/15/14	B2		651
	175	Verso Paper Holdings, LLC, Senior Notes, 9.121%, 08/01/14 (g)	B2		178
	350	Verso Paper Holdings, LLC, Senior Notes, 9.125%, 08/01/14 (g)	B2		367
	750	Verso Paper Holdings, LLC, Senior Subordinated Notes, 11.375%, 08/01/16 (g)	B3		784
					18,603
Diversified/Conglomerate Manufacturing — 1.96%
	850	Bombardier Inc., Senior Notes, 6.75%, 05/01/12 (g)	Ba2		833
	850	Case New Holland Inc., Senior Notes, 9.25%, 08/01/11	Ba3		901
	500	Hawk Corporation, Senior Notes, 8.75%, 11/01/14	B3		498
	175	Manitowoc Company, Inc., Senior Notes, 7.125%, 11/01/13	Ba3		176
	1,625	RBS Global, Inc., Senior Notes, 9.50%, 08/01/14 (g)	B3		1,688
					4,096

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
Diversified/Conglomerate Service — 6.37%
$	1,525	Brand Services, Inc., Senior Subordinated Notes, 12%, 10/15/12	Caa1	$	1,685
	1,225	The Brickman Group, Ltd., Senior Subordinated Notes, 11.75%, 12/15/09	Ba3		1,306
	2,100	Education Management, LLC, Senior Subordinated Notes, 10.25%, 06/01/16 (g)	Caa1		2,221
	825	H&E Equipment Services, Inc., Senior Notes, 8.375%, 07/15/16 (g)	B3		866
	1,000	Hertz Corporation, Senior Notes, 8.875%, 01/01/14 (g)	B1		1,050
	800	IKON Office Solutions, Inc., Senior Notes, 7.75%, 09/15/15	Ba3		840
	550	Interline Brands, Inc., Senior Subordinated Notes, 8.125%, 06/15/14	B3		567
	910	Invensys plc, Senior Notes, 9.875%, 03/15/11 (g)	B2		987
	504	Mobile Mini, Inc., Senior Notes, 9.50%, 07/01/13	B1		538
	650	Mobile Services Group, Inc., Senior Notes, 9.75%, 08/01/14 (g)	B3		682
	750	Neff Rental LLC, Senior Notes, 11.25%, 06/15/12	Caa1		815
	825	Rental Service Corporation, Senior Notes, 9.50%, 12/01/14 (g)	Caa1		852
	850	Sunstate Equipment Co, LLC, Senior Secured Notes, 10.50%, 04/01/13 (g)	B3		899
					13,308
Ecological — .92%
	1,250	Casella Waste Systems, Inc., Senior Subordinated Notes, 9.75%, 02/01/13	B3		1,314
	575	WCA Waste Corporation, Senior Notes, 9.25%, 06/15/14	B3		599
					1,913

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
Electronics — 10.88%
$	825	Celestica Inc., Senior Subordinated Notes, 7.875%, 07/01/11	B2	$	819
	675	Conexant Systems, Inc., Senior Notes 9.126%, 11/15/10 (g)	B1		687
	675	Dycom Investments, Inc., Senior Subordinated Notes, 8.125%, 10/15/15	Ba3		702
	500	Freescale Semiconductor, Inc., Senior Notes, 9.244%, 12/15/14 (g)	B1		496
	1,375	Freescale Semiconductor, Inc., Senior Notes, 8.875%, 12/15/14 (g)	B1		1,372
	1,600	Freescale Semiconductor, Inc., Senior Subordinated Notes, 10.125%, 12/15/16 (g)	B2		1,604
	825	General Cable Corporation, Senior Notes, 9.50%, 11/15/10	B1		882
	900	iPayment Inc., Senior Subordinated Notes, 9.75%, 05/15/14	Caa1		926
	650	iPayment Investors LP, Senior Notes, 12.75%, 07/15/14 (g)(i)	(e)		692
	1,125	Nortel Networks, Ltd., Senior Notes, 9.624%, 07/15/11 (g)	B3		1,181
	675	NXP, B.V., Senior Notes, 8.118%, 10/15/23 (g)	Ba2		686
	1,650	NXP, B.V., Senior Notes, 9.50%, 10/15/15 (g)	B2		1,704
	350	Serena Software, Inc., Senior Subordinated Notes, 10.375%, 03/15/16	Caa1		374
	550	Spansion Technology, Inc., Senior Notes, 11.25%, 01/15/16 (g)	Caa1		577
	300	SS&C Technologies, Inc., Senior Subordinated Notes, 11.75%, 12/01/13	Caa1		326
	350	STATS ChipPAC Ltd., Senior Notes, 6.75%, 11/15/11	Ba2		344
	325	STATS ChipPAC Ltd., Senior Notes, 7.50%, 07/19/10	Ba2		328
	1,425	Sunguard Data Systems, Inc., Senior Notes, 9.125%, 08/15/13	Caa1		1,502
	475	Sunguard Data Systems, Inc., Senior Notes, 9.973%, 08/15/13	Caa1		494

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
$	475	Superior Essex Communications, Senior Notes, 9%, 04/15/12	B3	$	494
	825	TDS Investor Corporation, Senior Subordinated Notes, 11.875%, 09/01/16 (g)	Caa1		848
	1,024	UGS Capital Corporation, II, Senior Notes, 10.348%, 06/01/11 (g)(i)	Caa1		1,045
	1,050	UGS Corporation, Senior Subordinated Notes, 10%, 06/01/12	B3		1,143
	325	Unisys Corporation, Senior Notes, 6.875%, 03/15/10	B2		320
	425	Unisys Corporation, Senior Notes, 7.875%, 04/01/08	B2		424
	250	Unisys Corporation, Senior Notes, 8%, 10/15/12	B2		248
	900	Xerox Corp., Senior Notes, 6.40%, 03/15/16	Baa3		918
	1,225	Xerox Corp., Senior Notes, 6.75%, 02/01/17	Baa3		1,271
	325	Xerox Corp., Senior Notes, 7.625%, 06/15/13	Baa3		340
					22,747
Farming and Agriculture — .39%
	750	Terra Capital, Inc., Senior Notes, 11.50%, 06/01/10	B2		812
Finance — 5.32%
	2,825	General Motors Acceptance Corporation, Senior Notes, 6.75%, 12/01/14	Ba1		2,910
	5,250	General Motors Acceptance Corporation, Senior Notes, 8%, 11/01/31	Ba1		6,038
	1,015	Global Cash Access LLC, Senior Subordinated Notes, 8.75%, 03/15/12	B3		1,070
	1,100	Leucadia National Corporation, Senior Notes, 7%, 08/15/13	Ba2		1,111
					11,129
Furnishings, Housewares, Durable Consumer Products — 1.15%
	1,050	Sealy Mattress Company, Senior Subordinated Notes, 8.25%, 06/15/14	B2		1,101
	1,025	Simmons Company, Senior Discount Notes, 10%, 12/15/14 (b)	Caa1		800

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
$	500	Simmons Company, Senior Subordinated Notes, 7.875%, 01/15/14	B3	$	507
					2,408
Grocery — .41%
	850	Pathmark Stores, Inc., Senior Subordinated Notes, 8.75%, 02/01/12	Caa2		850
Healthcare, Education and Childcare — 6.97%
	700	Biovail Corporation, Senior Subordinated Notes, 7.875%, 04/01/10	B1		715
	525	Community Health Systems, Inc., Senior Subordinated Notes, 6.50%, 12/15/12	B2		517
	1,425	Concentra Operating Corporation, Senior Subordinated Notes, 9.50%, 08/15/10	B3		1,498
	625	CRC Health Corporation, Senior Subordinated Notes, 10.75%, 02/01/16	Caa1		682
	600	DaVita, Inc., Senior Notes, 6.625%, 03/15/13	B2		602
	550	DaVita, Inc., Senior Subordinated Notes, 7.25%, 03/15/15	B3		562
	575	Fresenius Medical Care Capital Trust IV, 7.875%, 06/15/11	B1		595
	1,125	Genesis Healthcare Corporation, Senior Subordinated Notes, 8%, 10/15/13	B1		1,178
	1,400	HCA Inc., Senior Notes, 8.75%, 09/01/10	Caa1		1,459
	2,175	HCA Inc., Senior Notes, 9.25%, 11/15/16 (g)	B2		2,322
	350	Omnicare, Inc., Senior Subordinated Notes, 6.75%, 12/15/13	Ba3		346
	725	Team Health, Inc., Senior Subordinated Notes, 11.25%, 12/01/13	Caa1		752
	825	Triad Hospitals, Inc., Senior Subordinated Notes, 7%, 11/15/13	B2		827
	850	US Oncology, Inc., Senior Notes, 9%, 08/15/12	B2		901

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
$	1,000	Vanguard Health Holding Company II, LLC, Senior Subordinated Notes, 9%, 10/01/14	Caa1	$	1,014
	575	VWR International, Inc., Senior Subordinated Notes, 8%, 04/15/14	B3		594
					14,564
Hotels, Motels, Inns and Gaming — 4.77%
	1,025	American Casino & Entertainment Properties LLC, Senior Secured Notes, 7.85%, 02/01/12	B3		1,048
	25	Boyd Gaming Corporation, Senior Subordinated Notes, 8.75%, 04/15/12	Ba3		26
	775	Buffalo Thunder Development Authority, Senior Notes, 9.375%, 12/15/14 (g)	B2		785
	475	Chukchansi Economic Development Authority, Senior Notes, 8.877%, 11/15/12 (g)	B2		492
	525	Little Traverse Bay Bands of Odawa Indians, Senior Notes, 10.25%, 02/15/14 (g)	B2		528
	1,500	MGM MIRAGE, Senior Notes, 8.50%, 09/15/10	Ba2		1,609
	1,100	Mohegan Tribal Gaming Authority, Senior Subordinated Notes, 8%, 04/01/12	Ba2		1,145
	225	MTR Gaming Group, Inc., Senior Subordinated Notes, 9%, 06/01/12 (g)	B3		231
	925	Penn National Gaming, Inc., Senior Subordinated Notes, 6.75%, 03/01/15	B1		913
	900	Pokagon Gaming Authority, Senior Notes, 10.375%, 06/15/14 (g)	B3		985
	975	Poster Financial group, Inc., Senior Notes, 8.75%, 12/01/11	B3		1,018
	700	Trump Entertainment ResortsHoldings, L.P., Senior Secured Notes, 8.50%, 06/01/15	Caa1		700
	475	Tunica Biloxi Gaming Authority, Senior Notes, 9%, 11/15/15 (g)	B2		492
					9,972

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
Leisure, Amusement and Entertainment — 2.04%
$	800	AMF Bowling Worldwide, Inc. Senior Subordinated Notes, 10%, 03/01/10	B3	$	833
	850	Eastman Kodak Company, Senior Notes, 7.25%, 11/15/13	B2		846
	775	K2 Inc., Senior Notes, 7.375%, 07/01/14	B1		785
	513	Town Sports International, Inc., Senior Notes, 9.625%, 04/15/11	B2		539
	1,175	Universal City Development Partners, Ltd., Senior Notes, 11.75%, 04/01/10	B2		1,260
					4,263
Machinery — .96%
	1,125	Columbus McKinnon Corporation, Senior Subordinated Notes, 8.875%, 11/01/13	B2		1,188
	775	Terex Corporation, Senior Subordinated Notes, 9.25%, 07/15/11	B1		811
					1,999
Mining, Steel, Iron and Non-Precious Metals — 4.21%
	650	Aleris International, Inc., Senior Subordinated Notes, 10%, 12/15/16 (g)	Caa1		655
	825	Alpha Natural Resources, LLC, Senior Notes, 10%, 06/01/12	B3		897
	575	Arch Western Finance LLC, Senior Notes, 6.75%, 07/01/13	B1		570
	450	Century Aluminum Company, Senior Notes, 7.50%, 08/15/14	B1		455
	625	ESCO Corporation, Senior Notes, 8.625%, 12/15/13 (g)	B2		639
	350	ESCO Corporation, Senior Floating Rate Notes, 9.235%, 12/15/13 (g)	B2		356
	1,125	Foundation PA Coal Company, Senior Notes, 7.25%, 08/01/14	Ba3		1,142
	750	Gerdau Ameristeel Corporation, Senior Notes, 10.375%, 07/15/11	Ba2		802

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
$	1,075	Gibraltar Industries, Inc., Senior Subordinated Notes, 8%, 12/01/15	Ba3	$	1,053
	500	Indalex Holding Corporation, Senior Secured Notes, 11.50%, 02/01/14 (g)	Caa1		520
	375	Metals USA, Inc., Senior Notes, 11.125%, 12/01/15	B3		413
	850	Novelis, Inc., Senior Notes, 8.25%, 02/15/15 (g)	B2		818
	450	Peabody Energy Corporation, Senior Notes, 7.375%, 11/01/16	Ba1		478
					8,798
Oil and Gas — 14.53%
	1,650	AmeriGas Partners, L.P., Senior Notes, 7.25%, 05/20/15	B1		1,666
	750	Atlas Pipeline Partners, L.P., Senior Notes, 8.125%, 12/15/15	B2		771
	1,050	Chaparral Energy, Inc., Senior Notes, 8.50%, 12/01/15	B3		1,053
	1,100	CHC Helicopter Corporation, Senior Subordinated Notes, 7.375%, 05/01/14	B1		1,064
	550	Chesapeake Energy Corporation, Senior Notes, 6.50%, 08/15/17	Ba2		536
	1,900	Chesapeake Energy Corporation, Senior Notes, 6.875%, 11/15/20	Ba2		1,862
	300	Colorado Interstate Gas Company, Senior Notes, 5.95%, 03/15/15	Ba1		298
	1,450	Colorado Interstate Gas Company, Senior Notes, 6.80%, 11/15/15	Ba1		1,508
	675	Complete Production Services, Inc., Senior Notes, 8%, 12/15/16 (g)	B2		690
	1,075	Compton Petroleum Finance Corporation, Senior Notes, 7.625%, 12/01/13	B2		1,037
	750	Copano Energy, LLC, Senior Notes , 8.125%, 03/01/16	B2		776
	725	Denbury Resources, Inc., Senior Subordinated Notes, 7.50%, 04/01/13	B1		732
	350	Denbury Resources, Inc., Senior Subordinated Notes, 7.50%, 12/15/15	B1		355

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
$	850	Encore Acquisition Company, Senior Subordinated Notes, 7.25%, 12/01/17	B1	$	820
	900	Ferrellgas Partners L.P., Senior Notes, 8.75%, 06/15/12	B2		921
	1,000	Hanover Compressor Company, Senior Notes, 7.50%, 04/15/13	B2		1,007
	500	Hanover Equipment Trust, Senior Secured Notes, 8.75%, 09/01/11	Ba3		521
	1,250	Hilcorp Energy I, L.P., Senior Notes, 7.75%, 11/01/15 (g)	B3		1,230
	650	Magnum Hunter Resources, Inc., Senior Notes, 9.60%, 03/15/12	B1		683
	850	Mission Energy Holding Company, Senior Notes, 13.50%, 07/15/08	B2		940
	200	Northwest Pipeline Corporation, Senior Notes, 8.125%, 03/01/10	Ba1		208
	875	Offshore Logistics, Inc., Senior Notes, 6.125%, 06/15/13	Ba2		827
	775	OPTI Canada, Inc., Senior Notes, 8.25%, 12/15/14 (g)	B1		792
	650	Petrohawk Energy Corporation, Senior Notes, 9.125%, 07/15/13	B3		679
	525	Range Resources Corporation, Senior Subordinated Notes, 6.375%, 03/15/15	B1		512
	325	Range Resources Corporation, Senior Subordinated Notes, 7.375%, 07/15/13	B1		333
	475	Range Resources Corporation, Senior Subordinated 7.50%, 05/15/16	B1		489
	1,125	Southern Natural Gas Company, Senior Notes, 8.875%, 03/15/10	Ba1		1,181
	750	Stewart & Stevenson, LLC, Senior Notes, 10%, 07/15/14 (g)	B3		790
	825	Stone Energy Corporation, Senior Notes, 8.124%, 07/15/10 (g)	B3		820
	400	Swift Energy Company, Senior Subordinated Notes, 9.375%, 05/01/12	B2		422
	700	Williams Clayton Energy, Inc., Senior Notes, 7.75%, 08/01/13	B3		642
	175	Williams Companies, Inc., Senior Notes, 7.625%, 07/15/19	Ba2		187

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
$	3,725	Williams Companies, Inc., Senior Notes, 8.125%, 03/15/12	Ba2	$	4,023
					30,375
Personal, Food and Miscellaneous Services — 3.16%
	225	American Greetings Corporation, Senior Notes, 7.375%, 06/01/16	Ba2		231
	750	FTD, Inc., Senior Subordinated Notes, 7.75%, 02/15/14	B3		750
	800	FTI Consulting, Inc., Senior Notes, 7.625%, 06/15/13	Ba2		826
	525	FTI Consulting, Inc., Senior Notes, 7.75%, 10/01/16 (g)	Ba2		544
	600	Mac-Gray Corporation, Senior Notes, 7.625%, 08/15/15	B2		609
	850	O'Charleys, Inc., Senior Subordinated Notes, 9%, 11/01/13	B1		892
	475	Real Mex Restaurants, Inc., Senior Notes, 10.25%, 04/01/10	Ba2		501
	900	Restaurant Company, Senior Notes, 10%, 10/01/13	B3		846
	350	West Corporation, Senior Notes, 9.50%, 10/15/14 (g)	Caa1		350
	1,050	West Corporation, Senior Subordinated Notes, 11%, 10/15/16 (g)	Caa1		1,063
					6,612
Personal Non-Durable Consumer Products — .99%
	800	ACCO Brands Corporation, Senior Subordinated Notes, 7.625%, 08/15/15	B2		786
	519	American Achievement Group Holding Corp., Senior Notes, 12.75%, 10/01/12 (i)	Caa1		550
	50	Jostens Holding Corporation, Senior Notes, 10.25%, 12/01/13 (b)	B3		44
	675	Jostens Intermediate Holding Corp., Senior Subordinated Notes, 7.625%, 10/01/12	B2		685
					2,065
Personal Transportation — .33%
	675	Continental Airlines, Inc., Senior Notes, 8.75%, 12/01/11	Caa1		678

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
Printing and Publishing — 8.63%
$	1,225	Advanstar Communications Inc., Senior Secured Notes, 10.75%, 08/15/10	B1	$	1,317
	575	Advanstar Communications Inc., Senior Subordinated Notes, 12%, 02/15/11	Caa1		601
	675	Advanstar Inc., Senior Discount Debentures, 15%, 10/15/11	(e)		700
	406	Affinity Group Holding, Inc., Senior Notes, 10.875%, 02/15/12 (i)	B3		400
	850	Affinity Group Inc., Senior Subordinated Notes, 9%, 02/15/12	B2		845
	1,053	CanWest Media, Inc., Senior Subordinated Notes, 8%, 09/15/12	B2		1,095
	1,137	Dex Media East LLC, Senior Subordinated Notes, 12.125%, 11/15/12	B2		1,255
	75	Dex Media Inc., Senior Discount Notes, 9%, 11/15/13 (b)	B3		67
	800	Dex Media West LLC, Senior Subordinated Notes, 9.875%, 08/15/13	B2		875
	725	Haights Cross Communications Operating Company, Senior Notes, 11.75%, 08/15/11	Caa2		743
	3,025	Idearc, Inc., Senior Notes, 8%, 11/15/16 (g)	B2		3,082
	1,750	Lamar Publishing Corporation, Senior Subordinated Notes, 6.625%, 08/15/15	Ba3		1,737
	225	MediaNews Group, Inc., Senior Subordinated Notes, 6.375%, 04/01/14	B2		195
	650	MediaNews Group, Inc., Senior Subordinated Notes, 6.875%, 10/01/13	B2		588
	1,000	Morris Publishing Group, LLC, Senior Subordinated Notes, 7%, 08/01/13	B1		950
	1,450	R.H. Donnelley Finance Corporation, Senior Notes, 8.875%, 01/15/16	B3		1,522

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
$	1,900	R.H. Donnelley Inc., Senior Subordinated Notes, 10.875%, 12/15/12	B2	$	2,071
					18,043
Retail Stores — 4.81%
	1,000	Alimentation Couche-Tard, Inc., Senior Subordinated Notes, 7.50%, 12/15/13	Ba2		1,025
	300	AutoNation, Inc. Senior Notes, 7%, 04/15/14	Ba2		301
	275	AutoNation, Inc. Senior Notes, 7.374%, 04/15/13	Ba2		276
	700	Bon-Ton Department Stores, Inc., Senior Notes, 10.25%, 03/15/14	B3		718
	2,925	GameStop Corporation, Senior Notes, 8%, 10/01/12	B1		3,049
	125	General Nutrition Centers, Inc., Senior Notes, 8.625%, 01/15/11	B1		130
	525	General Nutrition Centers, Inc., Senior Subordinated Notes, 8.50%, 12/01/10	B3		538
	250	Gregg Appliances, Inc., Senior Notes, 9%, 02/01/13	B2		240
	1,150	Leslie's Poolmart, Inc., Senior Notes, 7.75%, 02/01/13	B3		1,141
	1,400	Nebraska Book Company, Inc., Senior Subordinated Notes, 8.625%, 03/15/12	B3		1,344
	50	Payless Shoesource, Inc., Senior Subordinated Notes, 8.25%, 08/01/13	B1		52
	800	Sally Holdings, LLC, Senior Notes, 9.25%, 11/15/14 (g)	B2		815
	388	Stripes Acquisition, LLC, Senior Notes, 10.625%, 12/15/13 (g)	B2		419
					10,048
Telecommunications — 17.46%
	100	American Cellular Corporation, Senior Notes, 10%, 08/01/11	B3		106
	150	American Towers, Inc., Senior Subordinated Notes, 7.25%, 12/01/11	Ba2		155
	475	Broadview Networks Holdings, Inc., Senior Secured Notes, 11.375%, 09/01/12 (g)	B3		494

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
$	1,075	Centennial Cellular Operating Co. LLC, Senior Notes, 10.125%, 06/15/13	B2	$	1,164
	475	Centennial Communications Corp., Senior Notes, 10%, 01/01/13	Caa1		505
	450	Citizens Communications Company, Senior Notes, 6.25%, 01/15/13	Ba2		442
	400	Citizens Communications Company, Senior Notes, 7.875%, 01/15/27 (g)	Ba2		404
	2,000	Citizens Communications Company, Senior Notes, 9%, 08/15/31	Ba2		2,165
	1,025	Cricket Communications, Inc., Senior Notes, 9.375%, 11/01/14 (g)	Caa2		1,081
	1,050	Digicel Limited, Senior Notes, 9.25%, 09/01/12 (g)	B3		1,114
	600	Dobson Cellular Systems, Inc., Senior Secured Notes, 9.875%, 11/01/12	B1		654
	725	Dobson Communications Corporation, Senior Notes, 8.875%, 10/01/13	Caa2		741
	850	GCI, Inc., Senior Notes, 7.25%, 02/15/14	B1		842
	850	Hellas Telecommuncations II S.a.r.l., Senior Notes, 11.115%, 01/15/15 (g)	Caa1		853
	425	Horizon PCS Escrow Company, Senior Notes, 11.375%, 07/15/12	B3		474
	450	iPCS Escrow Company, Senior Notes, 11.50%, 05/01/12	B3		501
	192	Level 3 Communications, Inc., Convertible Subordinated Bonds, 6%, 09/15/09	Caa3		180
	183	Level 3 Communications, Inc., Convertible Subordinated Notes, 6%, 03/15/10	Caa3		168
	475	Level 3 Communications, Inc., Senior Notes, 9.25%, 11/01/14 (g)	B2		484
	800	Level 3 Communications, Inc., Senior Notes, 11.50%, 03/01/10	Caa2		846
	725	Lucent Technologies, Inc., Senior Notes 6.45%, 03/15/29	Ba3		669

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
$	1,275	Lucent Technologies, Inc., Senior Notes 6.50%, 01/15/28	Ba3	$	1,179
	1,550	MetroPCS Wireless, Inc., Senior Notes, 9.25%, 11/01/14 (g)	Caa2		1,620
	2,675	Nordic Telephone Company Holdings ApS., Senior Notes, 8.875%, 05/01/16 (g)	B2		2,849
	1,250	Qwest Corporation, Senior Notes, 7.50%, 10/01/14	Ba1		1,323
	1,025	Qwest Corporation, Senior Notes, 7.875%, 09/01/11	Ba1		1,092
	825	Qwest Corporation, Senior Notes, 8.61%, 06/15/13	Ba1		893
	975	Qwest Corporation, Senior Notes, 8.875%, 03/15/12	Ba1		1,086
	375	Rogers Wireless Inc., Senior Secured Notes, 7.50%, 03/15/15	Ba2		409
	2,400	Rogers Wireless Inc., Senior Secured Notes, 8%, 12/15/12	B1		2,562
	1,000	Rogers Wireless Inc., Senior Secured Notes, 9.625%, 05/01/11	Ba2		1,135
	475	Rural Cellular Corporation, Senior Notes, 9.875%, 02/01/10	B3		508
	325	Rural Cellular Corporation, Senior Subordinated Notes, 11.121%, 11/01/12	Caa2		339
	850	Syniverse Technologies, Inc., Senior Subordianted Notes, 7.75%, 08/15/13	B1		844
	100	Time Warner Telecom Holdings, Inc., Senior Notes, 9.25%, 02/15/14	B3		107
	500	Valor Telecommunications Enterprise, L.L.C., Senior Notes, 7.75%, 02/15/15	Ba1		536
	1,525	Wind Acquistion Finance S.A., Senior Notes, 10.75%, 12/01/15 (g)	B2		1,735
	3,850	Windstream Corporation, Senior Notes, 8.625%, 08/01/16 (g)	Ba3		4,235
					36,494

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
CORPORATE DEBT SECURITIES — continued
Textiles and Leather — .66%
$	500	AGY Holding Corporation, Senior Notes, 11%, 11/15/14 (g)	B2	$	500
	100	Interface, Inc., Senior Subordinated Notes, 9.50%, 02/01/14	B3		105
	760	Rafaella Apparel Group, Inc., Senior Secured, 11.25%, 06/15/11(g)	B2		775
					1,380
Utilities — 12.14%
	350	The AES Corporation, Senior Notes, 7.75%, 03/01/14	B1		369
	1,075	The AES Corporation, Senior Notes, 9.375%, 09/15/10	B1		1,169
	3,100	The AES Corporation, Senior Secured Notes, 9%, 05/15/15 (g)	Ba3		3,340
	1,050	Allegheny Energy Supply Company, LLC, Senior Notes, 8.25%, 04/15/12 (g)	Ba3		1,152
	1,700	Midwest Generation, LLC, Senior Secured Notes, 8.75%, 05/01/34	Ba2		1,849
	825	Mirant Americas Generation, LLC, Senior Notes, 8.30%, 05/01/11	Caa1		846
	3,250	Mirant North America, LLC, Senior Notes, 7.375%, 12/31/13	B2		3,307
	1,275	NRG Energy, Inc., Senior Notes, 7.25%, 02/01/14	B1		1,281
	4,800	NRG Energy, Inc., Senior Notes, 7.375%, 02/01/16	B1		4,824
	1,650	Orion Power Holdings, Inc., Senior Notes, 12%, 05/01/10	B2		1,877
	700	Roseton-Danskammer 2001, Senior Secured Notes, 7.27%, 11/08/10	Ba3		716
	225	Sierra Pacific Resources, Senior Notes, 7.803%, 06/15/12	B1		233
	2,050	Sierra Pacific Resources, Senior Notes, 8.625%, 03/15/14	B1		2,201
	1,500	TECO Energy, Inc., Senior Notes, 7%, 05/01/12	Ba2		1,581
	600	Utilicorp Canada Financial Corporation, Senior Notes, 7.75%, 06/15/11	B2		635
					25,380
		Total Corporate Debt Securities (Total cost of $309,656)			315,903

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
BANK DEBT — 2.57% (d) (Note 9)
Automobile — .24%
$	500	The Goodyear Tire & Rubber Company, 8.89%, 03/01/11 (h)	(e)	$	508
Electronics — .65%
	750	Infor Enterprise Solutions Holdings, Inc., 9.12%, 07/28/12 (h)	(e)		756
	600	Sanmina-SCI Corporation, 7.88%, 01/31/08 (h)	Ba2		604
					1,360
Hotels, Motels, Inns and Gaming — .48%
	1,000	Lakes Gaming And Resorts, LLC, 11.615%, 06/21/10 (h)	(e)		1,001
Oil and Gas — 1.20%
	500	Lyondell Chemical Company, 7.121%, 08/16/13 (h)	(e)		502
	2,000	SandRidge Energy, Inc., 9.853%, 03/12/07 (h)	(e)		2,000
					2,502
		Total Bank Debt (Total cost of $5,345)			5,371
Shares
PREFERRED STOCK — 1.78% (d)
Automobile — 1.52%
	18,100	Ford Motor Company Capital Trust II, Convertible, Preferred Stock, 6.50%,	Caa2		615
	120,925	General Motors Corporation, Senior Convertible, Series B, Preferred Stock, 5.25%	Caa1		2,559
					3,174
Banking — 0.00%
	57,935	WestFed Holdings, Inc., Cumulative, Series A, Preferred Stock, 15.50% (a)(c)	(e)		—
Broadcasting and Entertainment — .26%
	483	Spanish Broadcasting System, Inc., Series B, Preferred Stock, 10.75%	B3		536
		Total Preferred Stock (Total cost of $8,392)			3,710

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

The New America High Income Fund, Inc.

Schedule of Investments — December 31, 2006 — Continued (Dollar Amounts in Thousands)

Principal Amount/Units			Moody's Rating (Unaudited)	Value (Note 1(a))
COMMON STOCK and WARRANTS — .10% (d)
$	27,474	WestFed Holdings, Inc., Common Stock (a)(c)		$	—
	10,052	WKI Holding Company, Inc., Common Stock (c)(f)(h) (Note 9)			201
		Total Common Stock and Warrants (Total cost of $2,295)			201
SHORT-TERM INVESTMENTS — 2.44% (d)
	1,123	Old Line Funding LLC, Commercial Paper, Due 01/05/07, Discount of 5.36%	P-1		1,122
	2,000	Park Avenue Receivables Company LLC, Commercial Paper, Due 02/01/07, Discount of 5.27% (g)	P-1		1,991
	2,000	Ranger Funding Company LLC, Commercial Paper, Due 01/10/07, Discount of 5.26%	P-1		1,998
		Total Short-Term Investments (Total cost of $5,111)			5,111
		TOTAL INVESTMENTS (Total cost of $330,799)		$	330,296

(a) Denotes issuer is in bankruptcy proceedings. Income is not being accrued.

(b) Securities are step interest bonds. Interest on these bonds accrues based on the effective interest method which results in a constant rate of interest being recognized.

(c) Security is valued at fair value using methods determined by the Board of Directors. The total value of these securities at December 31, 2006 was $201.

(d) Percentages indicated are based on total net assets to common shareholders of $208,999.

(e) Not rated.

(f) Non-income producing.

(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 Note to Schedule of Investments for vaulation policy. Total market value of Rule 144A securities amounted to $80,127 as of December 31, 2006.

(h) Restricted as to public resale. At the date of acquisition, these securities were valued at cost. The total value of restricted securities owned at December 31, 2006 was $5,572 or 2.67% of total net assets to common shareholders.

(i) Payment-In-Kind Security.

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

The New America High Income Fund, Inc.

Statement of Assets and Liabilities
December 31, 2006
(Dollars in thousands, except per share amounts)

Assets:
INVESTMENTS IN SECURITIES, at value (Identified cost of $330,799 see Schedule of Investments and Notes 1 and 2)	$	330,296
INTEREST RATE SWAP, at fair value (Note 6)		4,183
CASH		26
RECEIVABLES:
Investment securities sold		754
Interest and dividends		6,352
Swap settlement		154
PREPAID EXPENSES		29
Total assets	$	341,794
Liabilities:
PAYABLES:
Investment securities purchased	$	97
Dividend on common stock		2,264
Dividend on preferred stock		217
ACCRUED EXPENSES (Note 3)		217
Total liabilities	$	2,795
Auction Term Preferred Stock:
$1.00 par value, 1,000,000 shares authorized, 5,200 shares issued and outstanding, liquidation preference of $25,000 per share (Notes 4 and 5)	$	130,000
Net Assets	$	208,999
Represented By:
COMMON STOCK:
$0.01 par value, 200,000,000 shares authorized, 95,498,192 shares issued and outstanding	$	955
CAPITAL IN EXCESS OF PAR VALUE		385,536
UNDISTRIBUTED NET INVESTMENT INCOME (Note 2)		(1,539	)
ACCUMULATED NET REALIZED LOSS FROM SECURITIES TRANSACTIONS (Note 2)		(179,633	)
NET UNREALIZED APPRECIATION ON INVESTMENTS AND INTEREST RATE SWAPS		3,680
Net Assets Applicable To Common Stock (Equivalent to $2.19 per share, based on 95,498,192 shares outstanding)	$	208,999

Statement of Operations
For the Year Ended
December 31, 2006 (Dollars in thousands)

Investment Income: (Note 1)
Interest income	$	25,608
Other income		504
Dividend income		188
Total investment income	$	26,300
Expenses:
Cost of leverage:
Preferred and auction (Note 5)	$	338
Total cost of leverage	$	338
Professional services:
Management (Note 3)	$	1,151
Custodian and transfer agent		246
Legal (Note 8)		95
Audit		56
Total professional services	$	1,548
Administrative:
General administrative (Note 8)	$	489
Directors		217
NYSE		89
Shareholder communications		40
Shareholder meeting		40
Miscellaneous		35
Total administrative	$	910
Total expenses	$	2,796
Net investment income	$	23,504
Realized and Unrealized Gain (Loss) on Investment Activities:
Realized gain on investments, net	$	556
Net swap settlement receipts (Note 6)	$	1,680
Change in net unrealized depreciation on investments	$	7,319
Change in unrealized appreciation on interest rate swap agreement		(305	)
Total change in net unrealized depreciation on investments and interest rate swap	$	7,014
Net gain on investments and interest rate swap	$	9,250
Cost of Preferred Leverage
Distributions to preferred stockholders	$	(6,557	)
Net increase in net assets resulting from operations	$	26,197

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

The New America High Income Fund, Inc.

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

	For the Year Ended December 31, 2006			For the Year Ended December 31, 2005
From Operations:
Net investment income	$	23,504		$	23,606
Realized gain on investments, net		556			1,761
Net swap settlement receipts (disbursements)		1,680			(643	)
Change in net unrealized depreciation on investments and other financial instruments		7,014			(12,511	)
Distributions from net investment income related to preferred stock
Dividends to preferred stockholders		(6,557	)		(4,364	)
Net increase in net assets resulting from operations	$	26,197		$	7,849
From Fund Share and Auction Term Preferred Stock Transactions:
Net asset value of 1,173,203 shares and 456,871 shares issued to common stockholders for reinvestment of dividends in 2006 and 2005, respectively		2,527			993
Increase in net assets resulting from fund share transactions	$	2,527		$	993
Distributions to Common Stockholders:
From net investment income ($.21 and $.22 per share in 2006 and 2005, respectively)	$	(20,274	)	$	(20,458	)
Total net increase (decrease) in net assets	$	8,450		$	(11,616	)
Net Assets Applicable to Common Stock:
Beginning of period	$	200,549		$	212,165
End of period (Including $(1,539) and $(1,304) of accumulated deficit of net investment income at December 31, 2006 and December 31, 2005, respectively)	$	208,999		$	200,549

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

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 Years Ended December 31,
	2006			2005			2004			2003 (b)			2002
NET ASSET VALUE:
Beginning of period	$	2.13		$	2.26		$	2.19		$	1.89		$	2.61
NET INVESTMENT INCOME		.25			.25			.26			.26	#		.37
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND OTHER FINANCIAL INSTRUMENTS		.07			(.11	)		.09			.34			(.72	)
DISTRIBUTIONS FROM NET INVESTMENT INCOME RELATED TO PREFERRED STOCK:		(.05	)		(.05	)		(.05	)		(.06	)		(.08	)
TOTAL FROM INVESTMENT OPERATIONS		.27			.09			.30			.54			(.43	)
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
From net investment income		(.21	)		(.22	)		(.23	)		(.22	)		(.29	)
TOTAL DISTRIBUTIONS		(.21	)		(.22	)		(.23	)		(.22	)		(.29	)
Effect of rights offering and related expenses; and Auction Term Preferred Stock offering costs and sales load		—			—			—			(.02	)		—
NET ASSET VALUE:
End of period	$	2.19		$	2.13		$	2.26		$	2.19		$	1.89
PER SHARE MARKET VALUE:
End of period	$	2.26		$	2.03		$	2.19		$	2.16		$	2.01
TOTAL INVESTMENT RETURN†		22.82	%		2.47	%		12.80	%		19.23	%		(12.97	)%

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

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 Years Ended December 31,
	2006			2005			2004			2003 (b)			2002
NET ASSETS, END OF PERIOD, APPLICABLE TO COMMON STOCK (a)	$	208,999		$	200,549		$	212,165		$	204,705		$	131,170
NET ASSETS, END OF PERIOD, APPLICABLE TO PREFERRED STOCK (a)	$	130,000		$	130,000		$	130,000		$	130,000		$	100,000
TOTAL NET ASSETS APPLICABLE TO COMMON AND PREFERRED STOCK, END OF PERIOD (a)	$	338,999		$	330,549		$	342,165		$	334,705		$	231,170
EXPENSE RATIOS:
Ratio of preferred and other leverage expenses to average net assets* .		.16	%		.16	%		.15	%		.16	%		.18	%
Ratio of operating expenses to average net assets*		1.21	%		1.23	%		1.27	%		1.56	%		1.46	%
RATIO OF TOTAL EXPENSES TO AVERAGE NET ASSETS*		1.37	%		1.39	%		1.42	%		1.72	%		1.64	%
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS*		11.54	%		11.48	%		12.02	%		12.81	%		16.48	%
RATIO OF TOTAL EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON AND PREFERRED STOCK		.84	%		.85	%		.87	%		1.05	%		.89	%
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS APPLICABLE TO COMMON AND PREFERRED STOCK		7.05	%		7.03	%		7.38	%		7.79	%		8.91	%
PORTFOLIO TURNOVER RATE		64.08	%		61.54	%		70.90	%		120.47	%		82.47	%

(a) Dollars in thousands.

(b) The Fund issued Series C ATP on October 17, 2003. The per share data and ratios for the year ended December 31, 2003 reflect this transaction.

* 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.

# Calculation is based on average shares outstanding during the indicated period due to the per share effect of the Fund's August, 2003 rights offering.

† Total investment return is calculated assuming a purchase 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.
20

The New America High Income Fund, Inc.

Information Regarding
Senior Securities

	As of December 31,
	2006		2005		2004		2003		2002
TOTAL AMOUNT OUTSTANDING: Preferred Stock	$	130,000,000	$	130,000,000	$	130,000,000	$	130,000,000	$	100,000,000
ASSET COVERAGE: Per Preferred Stock Share (1)	$	65,192	$	63,567	$	65,801	$	64,366	$	57,793
INVOLUNTARY LIQUIDATION PREFERENCE: Preferred Stock Share (2)	$	25,000	$	25,000	$	25,000	$	25,000	$	25,000
APPROXIMATE MARKET VALUE: Per Preferred Stock Share (2)	$	25,000	$	25,000	$	25,000	$	25,000	$	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) Plus accumulated and unpaid dividends.

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

The New America High Income Fund, Inc.

Notes to Financial Statements
December 31, 2006

(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 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—Investments for which market quotations are readily available are stated at market value, which is determined by using the most recently quoted bid price provided by an independent pricing service or principal market maker. Independent pricing services provide market quotations based primarily on quotations from dealers and brokers, market transactions, accessing data from quotations services, offering sheets obtained from dealers and various relationships between securities. Short-term investments with original maturities of 60 days or less are stated at amortized cost, which approximates market value. Following procedures approved by the Board of Directors, investments for which market quotations are not readily available (primarily fixed-income corporate bonds and notes) are stated at fair value on the basis of subjective valuations furnished by securities dealers and brokers. Other investments, for which market quotations are not readily available with a cost of approximately $7,214,000 and a value of $201,000, are valued in good faith at fair market value using methods determined by the Board of Directors.

(b) 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

The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2006

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.

(c) 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.

(d) New Accounting Pronouncements—In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes, a clarification of FASB Statement No. 109, Accounting for Income Taxes. FIN 48 establishes financial reporting rules regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. FIN 48 is to be implemented no later than June 29, 2007 and is to be applied to all open tax years as of the date of effectiveness. At this time, management believes that the adoption of FIN 48 will have no impact on the financial statements of the Fund.

In September 2006, the FASB released the Statement of Financial Accounting Standard No. 157 ("FAS 157"), Fair Value Measurements. FAS 157 clarifies the definition of fair value and establishes the framework for measuring fair value, as well as proper disclosure of this methodology in the financial statements. It will be effective for the Fund's fiscal year beginning January 1, 2008. Management is evaluating the effects of FAS 157; however it is not expected to have a material impact on the Fund's net assets or results of operations.

(2) Tax Matters and Distributions

At December 31, 2006, the total cost of securities (including temporary cash investments) for federal income tax purposes was approximately $332,534,000. Aggregate gross unrealized gain on securities in which there was an excess of value over tax cost was approximately $7,415,000. Aggregate unrealized loss on securities in which there was an excess of tax cost over value was approximately $9,653,000. Net unrealized loss on investments for tax purposes at December 31, 2006 was approximately $2,238,000

At December 31, 2006, the Fund had approximate capital loss carryovers available to offset future capital gains, if any, to the extent provided by regulations:

Carryover Available		Expiration Date
$	35,581,000	December 31, 2007
	21,821,000	December 31, 2008
	67,043,000	December 31, 2009
	45,239,000	December 31, 2010
	7,387,000	December 31, 2011
	125,000	December 31, 2012
	954,000	December 31, 2013
	1,481,000	December 31, 2014
$	179,631,000

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 and preferred shareholders of approximately $26,777,000 and $24,790,000 in 2006 and 2005, respectively, was from ordinary income.

As of December 31, 2006, the components of distributable earnings on a tax basis were approximately:

Undistributed Net Investment Income	$	411,000
Undistributed Long-Term Gain		—
Unrealized Gain	$	1,946,000
Capital Losses Carry Forward	$	(179,631,000	)

The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2006

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, and deductibility of preferred stock dividends. For the year ended December 31, 2006, the Fund reclassed $1,412,000 between undistributed income and accumulated net realized losses from transactions relating to permanent differences between financial and tax reporting.

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 was required to amortize market discounts and premiums for financial reporting purposes beginning January 1, 2001. This new accounting policy 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.

(3) Investment Advisory Agreement

T. Rowe Price Associates, Inc. (T. Rowe Price), the Fund's Investment Advisor, earned approximately $1,151,000 in management fees during the year ended December 31, 2006. 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 a tributable to the Fund's common and auction term preferred stock. At December 31, 2006, the fee payable to T. Rowe Price was approximately $99,000, which was included in accrued expenses on the accompanying statement of assets and liabilities.

(4) Auction Term Preferred Stock (ATP)

The Fund had 5,200 shares of ATP issued and outstanding at December 31, 2006. The ATP's dividends are cumulative at a rate determined at an auction, and dividend periods will typically be 28 days unless notice is given for periods to be longer or shorter than 28 days. Dividend rates ranged from 4.25% – 5.30% for the year ended December 31, 2006. The average dividend rate as of December 31, 2006 was 5.27%.

The ATP is redeemable, at the option of the Fund, or subject to mandatory redemption (if the Fund is in default of certain coverage requirements) at a redemption price equal to $25,000 per share plus accumulated and unpaid dividends. The ATP has a liquidation preference of $25,000 per share plus accumulated and unpaid dividends. The Fund is required to maintain certain asset coverages with respect to the ATP under the Fund's Charter and the 1940 Act in order to maintain the Fund's Aaa/AAA ratings by Moody's Investors Service, Inc. and Fitch, Inc., respectively.

(5) ATP Auction-Related Matters

Bankers Trust Company (BTC) serves as the ATP's auction agent pursuant to an agreement entered into on January 4, 1994. The term of the agreement is unlimited and may be terminated by either party. BTC may resign upon notice to the Fund, such resignation to be effective on the earlier of the 90th day after the delivery of such notice and the date on which a successor auction agent is appointed by the Fund. The Fund may also replace BTC as auction agent at any time.

After each auction, BTC as auction agent will pay to each broker-dealer, from funds provided by the Fund, a maximum service charge at the annual rate of 0.25 of

The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2006

1% or such other percentage subsequently agreed to by the Fund and the broker-dealers, of the purchase price of shares placed by such broker-dealers at such auction. In the event an auction scheduled to occur on an auction date fails to occur for any reason, the broker-dealers will be entitled to service charges as if the auction had occurred and all holders of shares placed by them had submitted valid hold orders. The Fund incurred approximately $338,000 for service charges for the year ended December 31, 2006. This amount is included under the caption preferred and auction fees in the accompanying statement of operations.

(6) Interest Rate Swaps

The Fund entered into an interest payment swap arrangement with Fleet National Bank (Fleet) for the purpose of partially hedging its dividend payment obligations with respect to the ATP. Pursuant to the Swap Arrangement the Fund makes payments to Fleet on a monthly basis at a fixed annual rate. In exchange for such payment Fleet makes payments to the Fund on a monthly basis at a variable rate determined with reference to one month LIBOR. The variable rates ranged from 4.31% to 5.41% for the year ended December 31, 2006. The effective date, notional amount, maturity and fixed rate of the swap is as follows:

Effective
Date

Notional
Contract
Amount

Maturity

Fixed
Annual
Rate

11/5/04

$130 million

11/5/09

3.775

Swap transactions, which involve future settlement, give rise to credit risk. Credit risk is the amount of loss the Fund would incur in the event counterparties failed to perform according to the terms of the contractual commitments. In the event of nonperformance by the counterparty, the Fund's dividend payment obligation with respect to the ATP would no longer be partially hedged. Therefore, the ATP dividend would no longer be partially fixed. In an unfavorable interest rate environment, the Fund would be subject to higher net ATP dividend payments, resulting in less income available for the common share dividend. The Fund does not anticipate nonperformance by any counterparty. While notional contract amounts are used to express the volume of interest rate swap agreements, the amounts potentially subject to credit risk, in the event of nonperformance by counterparties, are substantially smaller.

The Fund recognizes all freestanding derivative instruments in the balance sheet as either assets or liabilities and measures them at fair value. Any change in the unrealized gain or loss is recorded in current earnings. For the year ended December 31, 2006, the Fund's obligations under the swap agreements were less than the amount received from Fleet by approximately $1,680,000 and such amount is included in the accompanying statement of operations.

The estimated fair value of the interest rate swap agreement at December 31, 2006 amounted to approximately $4,183,000 of unrealized gain and is presented in the accompanying balance sheet.

(7) Purchases and Sales of Securities

Purchases and proceeds of sales or maturities of long-term securities during the year ended December 31, 2006 were approximately:

Cost of purchases				$	208,975,000
Proceeds of sales or maturities				$	205,057,000

(8) Related Party Transactions

A partner of Goodwin Procter LLP, counsel to the Fund, serves as a Director of the Fund. Fees earned by Goodwin Procter LLP amounted to approximately $95,000 for the year ended December 31, 2006.

The Fund paid approximately $299,000 during the year ended December 31, 2006 to two officers of the Fund for the provision of certain administrative services.

The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
December 31, 2006

(9) Investments in Restricted Securities

(Dollars in thousands)

The Fund is permitted to invest in restricted securities. The total restricted securities (excluding 144A issues) at December 31, 2006 amounts to $5,572 and represents 2.67% of net assets to common shareholders.

Description	Acquistition Date	Principal Amount/ Shares		Acquisition Cost		Value
The Goodyear Tire & Rubber Company, 8.89%, 03/01/11	7/17/06-7/26/06	$	500	$	505	$	508
Infor Enterprise Solutions Holdings, Inc. 9.12%, 07/28/12	07/25/06		750		750		756
Lakes Gaming And Resorts, LLC, 11.615%, 06/21/10	06/07/06		1,000		990		1,001
Lyondell Chemical Company, 7.121%, 08/16/13	09/28/06		500		500		502
SandRidge Energy, Inc. 9.853%, 03/12/07	11/20/06		2,000		2,000		2,000
Sanmina-SCI Corporation 7.88%, 01/31/08	10/19/06		600		600		604
WKI Holding Company, Inc.	03/13/03		10		2,295		201
Total						$	5,572

The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information (Unaudited)

Information About the Review and Approval of the Fund's Investment Advisory Agreement

On October 31, 2006 the Board of Directors, including all of the Directors that are not "interested persons" of the Fund (the "Independent Directors"), approved the continuation of the Advisory Agreement with the Adviser. In considering this action, the Directors requested and reviewed a variety of materials relating to the Fund and the Adviser, including comparative performance, fee and expense information for a group of closed-end high yield debt funds with leveraged capital structures selected by Fund management to be representative of the Fund's principal competitors (the "Peer Group"). The Directors also requested and reviewed performance information for the Lipper CEFHY Leveraged Index, the Lipper CEFHY Non-Leveraged Index, the Lipper High Yield Index, the Credit Suisse High Yield Index, the Lehman Brothers U.S. Corporate High Yield Index, the Merrill Lynch High Yield Index, the J. P. Morgan Global High Yield Index and the Citigroup BB-B Index (the "Indices") and other information regarding the nature, extent and quality of services provided by the Adviser. The Directors also took into account performance, fee, expense and other information regarding the Fund provided to them by the Adviser and Fund management on a quarterly basis throughout the year.

Nature, Extent and Quality of Services. In considering the nature, extent and quality of the services provided by the Adviser, the Directors reviewed information relating to the Adviser's operations and personnel. Among other things, the Investment Manager provided financial information, biographical information on its portfolio management and other professional staff and descriptions of its organizational and management structure, its trade placement policies and its compliance practices. The Directors also took into account information provided periodically since the Board's last renewal of the Advisory Agreement by the Adviser relating to the performance of its duties with respect to the Fund and Fund management, and the Directors' familiarity with the Adviser's management through Board meetings, discussions and reports. In the course of their deliberations regarding the Advisory Agreement, the Directors evaluated, among other things: (a) the services rendered by the Adviser in the past; (b) the qualifications and experience of the Adviser's personnel; and (c) the Adviser's compliance programs. The Directors also took into account the financial condition of the Adviser with respect to its ability to provide the services required under the Advisory Agreement. After consideration of the foregoing, the Directors concluded that: (1) the Adviser is a large, well capitalized organization with substantial resources and personnel; (2) the Adviser has demonstrated that it possesses the capability and resources to perform the duties required of it under the Advisory Agreement; (3) the Adviser's personnel are qualified to manage the Fund's assets in accordance with its investment objectives and policies; (4) the Adviser's disciplined but flexible investment approach is appropriate for the Fund; (5) the Adviser has demonstrated an appropriate awareness of the special requirements associated with the Fund's leveraged structure; and (6) the Adviser maintains appropriate compliance programs.

Fund Performance. The Directors noted that according to Lipper Inc., the Fund's total return based on its net asset value (which reflects the effect both of the Fund's fees and expenses and of the costs and effects of the Fund's leverage) was above the median, above the median and below the median for total return performance based on net asset value for funds in the Peer Group for the one year, two year and three year periods ended September 30, 2006, respectively. In addition, the Directors noted that the Fund's total return calculated without taking into account the effect of any fees and expenses or the costs or effects of the Fund's leverage ("gross performance") exceeded the performance of all the Lipper Indices for one year, two year and three year periods ended September 30, 2006 except

The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information (Unaudited)

for the three year performance of the Lipper CEFHY Non-Leveraged Index; the Fund's gross performance exceeded that of the Citigroup BB-B Index, the Index deemed to be most comparable to the Fund's general investment focus under the Adviser's management, for the one and two year periods ended September 30, 2006, but not for the three year period ended September 30, 2006; and the Fund's gross performance for the one, two and three year periods ended September 30, 2006 was below that of the other non-Lipper Indices. In analyzing the Adviser's performance, the Directors took note of the fact that the Adviser commenced its tenure on December 2, 2002 managing an investment portfolio created by the Fund's prior adviser; the Directors also took into account conditions in the high yield debt market during the period since the Adviser was retained and the Adviser's responsiveness to the Board's emphasis on maintaining dividend stability. On the basis of the foregoing, among other considerations associated with the Fund's performance, such as the limitations imposed on portfolio management by the diversification and asset coverage requirements associated with the credit rating for the Fund's auction term preferred stock, the Directors concluded that the Fund's performance is reasonable given the investment/risk profile the Fund has sought to maintain and prevailing conditions in the high yield debt market.

Costs of Services/Adviser Profitability. The Directors determined that information relating to the cost to the Adviser of the services it provides under the Advisory Agreement and the profitability to the Adviser of its relationship with the Fund were not relevant to their consideration of the Advisory Agreement's continuation, since (a) during all relevant time periods there has been no affiliation or other relationship between Fund management or the Directors on one hand and the Adviser on the other hand, that would compromise the complete independence of Fund management and the Directors from the Adviser and (b) the process of selecting the Adviser to succeed Wellington Management Company was characterized by independent evaluation of potential successor firms and arm's length bargaining between Fund management and the Board on one hand, and the Adviser on the other, to determine the terms of, and the fee rate to be paid under, the Advisory Agreement.

Economies of Scale. Given the Fund's advisory fee structure under the Advisory Agreement (which provides for breakpoints), and the Fund's current and anticipated size, the Directors concluded that the Fund's advisory fee adequately reflects any economies of scale the Adviser might enjoy in managing the Fund.

Advisory Fee. In considering the fee payable to the Adviser under the Advisory Agreement, the Directors reviewed information relating to the fees paid by open-end funds for which the Adviser serves as investment manager or subadviser, the fee schedule for separate account clients of the Adviser and data from Lipper Inc. on advisory fees paid by funds in the Peer Group. Among other things, the Directors noted that (a) as of September 30, 2006, the effective advisory fee rate for the Fund was lower than the advisory fees the Adviser charges its open-end fund clients; (b) the Fund's advisory fee rate schedule is more favorable than the Adviser's standard fee schedules for high yield debt separate accounts; and (c) the Fund's advisory fee is below those charged by a substantial majority of the Peer Group. The Directors concluded that, in light of the nature, extent and quality of the services provided by the Adviser, the Fund's performance, and the other considerations noted above with respect to the Adviser, the Fund's advisory fees are reasonable.

Based on the above-mentioned factors and their related conclusions, with no single factor or conclusion being determinative and with each Director not necessarily attributing the same weight to each factor, the Directors concluded

The New America High Income Fund, Inc.

Notes to Financial Statements — Continued
Supplemental Information (Unaudited)

that approval of the Advisory Agreement would be in the interests of the Fund and its shareholders. Accordingly, on October 31, 2006 the Directors, including all of the Independent Directors, voted to approve continuation of the Advisory Agreement.

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 Certifications

On June 1, 2006, your Fund submitted a CEO annual certification to the New York Stock Exchange (NYSE) on which the Fund's principal executive officer certified that he was not aware, as of that date, of any violation by the Fund of the NYSE's Corporate Governance listing standards. In addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC rules, the Fund's principal executive and principal financial officers have made quarterly certifications, included in filings with the SEC on Forms N-CSR and N-Q, relating to, among other things, the Fund's disclosure controls and procedures and internal control over financial reporting.

Common and Auction Term Preferred Stock Transactions

From time to time in the future, the Fund may effect redemptions and/or repurchases of its ATP as provided in the applicable constituent instruments or as agreed upon by the Fund and sellers. The Fund intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements.

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 in the best interest of its stockholders. 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.

The New America High Income Fund, Inc.

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders
The New America High Income Fund, Inc.

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of The New America High Income Fund, Inc., as of December 31, 2006, and the related statement of operations for the year then ended and the statement of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The financial highlights for each of the three years in the period ended December 31, 2004 were audited by other auditors whose report dated February 17, 2005, expressed an unqualified opinion.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (US). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of The New America High Income Fund, Inc. as of December 31, 2006, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for each of the years indicated thereon, in conformity with accounting principles generally accepted in the United States of America.

TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania
February 2 , 2007

The New America High Income Fund, Inc.

Directors

Robert F. Birch
Joseph L. Bower
Richard E. Floor
Bernard J. Korman
Ernest E. Monrad
Marguerite A. Piret

Officers

Robert F. Birch – President
Ellen E. Terry – Vice President, Treasurer
Richard E. Floor – 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 Bank and Trust Company
225 Franklin Street
Boston, MA 02110

Transfer Agent

American Stock Transfer & Trust Company
59 Maiden Lane
New York, NY 10038
(866) 624-4105
Web site: www.amstock.com

Independent Registered Public Accountants

Tait, Weller & Baker LLP
1818 Market Street
Philadelphia, PA 19103

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

The New America High Income Fund, Inc.

Information About the Fund's Directors and Officers

Independent Directors

Name,
Address¹, and
Date of Birth

Position(s)
Held with
Fund

Term of Office²and Length of
Time Served

Principal
Occupation(s)
During
Past 5 Years

Number of
Portfolios
in Fund
Complex³Overseen
by Director

Other
Directorships
Held by
Director

Joseph L. Bower
DOB: 09/21/38

Director

Director
since 1988

Professor, Harvard Business School since 1963 – as Donald K. David Professor of Business Administration since 1986, Senior Associate Dean, Chair of the Doctoral Programs, Chair of the General Management Area, and currently, Chair of the General Manager Program.

Director of Anika Therapeutics, Inc., Sonesta International Hotels Corporation, Loews, Corporation (a conglomerate), and Brown Shoe Company, Inc., and Trustee of TH Lee-Putnam Emerging Opportunities Portfolio.

Bernard J. Korman
DOB: 10/13/31

Director

Director
since 1987

Chairman of the Board of Directors of Philadelphia Health Care Trust (non-profit corporation supporting healthcare delivery, education and research).

Director of Omega Healthcare Investors, Inc. (real estate investment trust), Medical Nutrition USA, Inc. (develops and distributes nutritional products), and Nutramax Products, Inc. (a consumer healthcare products company).

1 The address for each Director is c/o The New America High Income Fund, Inc., 33 Broad Street, Boston, MA 02109.

2 Each Director serves as such until the next annual meeting of the Fund's stockholders and until the Director's successor shall have been duly elected and qualified.

3 The New America High Income Fund, Inc. is not part of any fund complex.

The New America High Income Fund, Inc.

Information About the Fund's Directors and Officers — Continued

Name,
Address¹, and
Date of Birth

Position(s)
Held with
Fund

Term of Office²and Length of
Time Served

Principal
Occupation(s)
During
Past 5 Years

Number of
Portfolios
in Fund
Complex³Overseen
by Director

Other
Directorships
Held by
Director

Ernest E. Monrad
DOB: 5/30/30

Director

Director
since 1988*

Trustee since 1960 and Chairman of the Trustees from 1969 to May 2001 of Northeast Investors Trust; Chairman, Assistant Treasurer and a Director since 1981 of Northeast Investors Growth Fund; Director and Vice President of Northeast Investment Management, Inc., until 12/31/06, and Director of Northeast Management & Research Company, Inc.

Marguerite A. Piret
DOB: 5/10/48

Director

Director
since 2004

President and Chief Executive Officer, Newbury, Piret & Company, Inc., (an investment bank).

Trustee of Pioneer Funds.

Interested Directors and Officers

Robert F. Birch⁴
DOB: 3/12/36

Director and President

Director
since 1992

Mutual Fund Director

Director of Hyperion Funds and the Brandywine Funds.

Richard E. Floor⁵
DOB: 8/3/40

Director and Secretary

Director
since 1987

Partner through his professional corporation with the law firm of Goodwin Procter LLP, Boston, Massachusetts.

Director of Affiliated Managers Group, Inc.

1 The address for each Director is c/o The New America High Income Fund, Inc., 33 Broad Street, Boston, MA 02109.

2 Each Director serves as such until the next annual meeting of the Fund's stockholders and until the Director's successor shall have been duly elected and qualified.

3 The New America High Income Fund, Inc. is not part of any fund complex.

4 As the Fund's President, Mr. Birch is an interested person of the Fund within the meaning of the Investment Company Act of 1940, as amended (the "1940 Act").

5 Mr. Floor is an interested person of the Fund within the meaning of the 1940 Act because, through his professional corporation, Mr. Floor is a partner of Goodwin Procter LLP, counsel to the Fund.

* Includes service as Director Emeritus from April 2005 until July 2005.

Ellen E. Terry (D.O.B. 4/9/59), Vice President and Treasurer of the Fund since February 18, 1992, is the only executive officer of the Fund not named in the above table of interested Directors. Ms. Terry served as Acting President and Treasurer of the Fund from October 1991 through February 18, 1992, and as Vice President of the Fund prior to such time. Ms. Terry's address is: c/o The New America High Income Fund, 33 Broad Street, Boston, MA 02109. A Fund officer holds office until the officer's successor is duly elected and qualified, until the officer's death or until the officer resigns or has been removed.

THIS PAGE INTENTIONALLY LEFT BLANK

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

The New
America
High Income
Fund, Inc.

Annual

Report

December 31, 2006

ITEM 2. CODE OF ETHICS.

As of December 31, 2003, the Fund has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer, Principal Financial Officer/Chief Financial Officer, Principal Accounting Officer, Vice President, Treasurer and Manager of Accounting and Finance. The code of ethics is posted on the Fund’s web site at
www.newamerica-hyb.com.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Fund’s Audit and Nominating Committee is comprised solely of Directors who are “independent” as such term has been defined by the Securities and Exchange Commission in regulations implementing Section 407 of the Sarbanes-Oxley Act. The Board of Directors (a) has determined that each member of the Audit and Nominating Committee is “financially literate” and has “accounting or related financial management experience” as these terms are used in the corporate governance standards of the New York Stock Exchange and (b) believes that each has substantial experience relating to the review of financial statements and the operations of audit committees. In addition, the Board of Directors has determined that based upon their review of her experience and education, Ms. Piret qualifies as an “audit committee financial expert”, as that term has been defined by the instructions to this Item.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information required by this Item regarding principal accountants, fees and services appears under the caption “Independent Accountants and Fees” in the Fund’s Proxy Statement dated February 27, 2007 prepared for the Annual Meeting of Shareholders to be held April 27, 2007, which was filed with the SEC via EDGAR on February 22, 2007. The information under that caption is incorporated herein by reference.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The information required by this Item regarding the audit committee of the Fund appears under the caption “Committees of the Board of Directors and Meetings—Audit and Nominating Committee” in the Fund’s Proxy Statement dated February 27, 2007 prepared for the Annual Meeting of Shareholders to be held April 27, 2007, which was filed with the SEC via EDGAR on February 22, 2007. The information under that caption is incorporated herein by reference.

ITEM 6.

This schedule is 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.

PROXY VOTING POLICIES AND PROCEDURES

At its June 26, 2003 meeting, the Fund’s Board of Directors authorized and directed T. Rowe Price Associates, Inc. (“T. Rowe Price”), the Fund’s investment adviser, to vote proxies relating to the Fund’s portfolio securities in accordance with T. Rowe Price’s proxy voting policies and procedures. T. Rowe Price, as an investment adviser with a fiduciary responsibility to the Fund, analyzes the proxy statements of issuers whose stock is owned by the Fund, if any.

RESPONSIBILITY TO VOTE PROXIES

T. Rowe Price recognizes and adheres to the principle that one of the privileges of owning stock in a company is the right to vote in the election of the company’s directors and on matters affecting certain important aspects of the company’s structure and operations that are submitted to shareholder vote. As an investment adviser with a fiduciary responsibility to its clients, T. Rowe Price analyzes the proxy statements of issuers whose stock is owned by the U.S.-registered investment companies which it sponsors and serves as investment adviser (“T. Rowe Price Funds”) and by institutional and private counsel clients who have requested that T. Rowe Price be involved in the proxy process. T. Rowe Price has assumed the responsibility for voting proxies on behalf of the T. Rowe Price Funds and certain counsel clients who have delegated such responsibility to T. Rowe Price. In addition, T. Rowe Price makes recommendations regarding proxy voting to counsel clients who have not delegated the voting responsibility but who have requested voting advice.

T. Rowe Price has adopted these Proxy Voting Policies and Procedures (“Policies and Procedures”) for the purpose of establishing formal policies and procedures for performing and documenting its fiduciary duty with regard to the voting of client proxies.

Fiduciary Considerations. It is the policy of T. Rowe Price that decisions with respect to proxy issues will be made in light of the anticipated impact of the issue on the desirability of investing in the portfolio company from the viewpoint of the particular client or Price Fund. Proxies are voted solely in the interests of the client, Price Fund shareholders or, where employee benefit plan assets are involved, in the interests of plan participants and beneficiaries. Our intent has always been to vote proxies, where possible to do so, in a manner consistent with our fiduciary obligations and responsibilities. Practicalities and costs involved with international investing may make it impossible at times, and at other times disadvantageous, to vote proxies in every instance.

Consideration Given Management Recommendations. One of the primary factors T. Rowe Price considers when determining the desirability of investing in a particular company is the quality and depth of its management. The Policies and Procedures were developed with the recognition that a company’s management is entrusted with the day-to-day operations of the company, as well as its long-term direction and strategic planning, subject to the oversight of the company’s board of directors. Accordingly, T. Rowe Price believes that the recommendation of management on most issues should be given weight in determining how proxy issues should be voted. However, the position of the company’s management will not be supported in any situation where it is found to be not in the best interests of the client, and the portfolio manager may always elect to vote contrary to management when he or she believes a particular proxy proposal may adversely affect the investment merits of owning stock in a portfolio company.

ADMINISTRATION OF POLICIES AND PROCEDURES

Proxy Committee. T. Rowe Price’s Proxy Committee (“Proxy Committee”) is responsible for establishing positions with respect to corporate governance and other proxy issues, including those involving social responsibility issues. The Proxy Committee also reviews questions and responds to inquiries from clients and mutual fund shareholders pertaining to proxy issues of corporate responsibility. While the Proxy Committee sets voting guidelines and serves as a resource for T. Rowe Price portfolio management, it does not have proxy voting authority for any Price Fund or counsel client. Rather, this responsibility is held by the Chairperson of the Fund’s Investment Advisory Committee or counsel client’s portfolio manager.

Investment Services Group. The Investment Services Group (“Investment Services Group”) is responsible for administering the proxy voting process as set forth in the Policies and Procedures.

Proxy Administrator. The Investment Services Group will assign a Proxy Administrator (“Proxy Administrator”) who will be responsible for ensuring that all meeting notices are reviewed and important proxy matters are communicated to the portfolio managers and regional managers for consideration.

HOW PROXIES ARE REVIEWED, PROCESSED AND VOTED

In order to facilitate the proxy voting process, T. Rowe Price has retained Institutional Shareholder Services (“ISS”) as an expert in the proxy voting and corporate governance area. ISS specializes in providing a variety of fiduciary-level proxy advisory and voting services. These services include in-depth research, analysis, and voting recommendations as well as vote execution, reporting, auditing and consulting assistance for the handling of proxy voting responsibility and corporate governance-related efforts. While the Proxy Committee relies upon ISS research in establishing T. Rowe Price’s proxy voting guidelines, and many of our guidelines are consistent with ISS positions, T. Rowe Price does at times deviate from ISS recommendations on general policy issues or specific proxy proposals.

Meeting Notification

T. Rowe Price utilizes ISS’ voting agent services to notify us of upcoming shareholder meetings for portfolio companies held in client accounts and to transmit votes to the various custodian banks of our clients. ISS tracks and reconciles T. Rowe Price holdings against incoming proxy ballots. If ballots do not arrive on time, ISS procures them from the appropriate custodian or proxy distribution agent. Meeting and record date information is updated daily, and transmitted to T. Rowe Price through ProxyMaster.com, an ISS web-based application. ISS is also responsible for maintaining copies of all proxy statements received by issuers and to promptly provide such materials to T. Rowe Price upon request.

ISS provides comprehensive summaries of proxy proposals (including social responsibility

issues), publications discussing key proxy voting issues, and specific vote recommendations regarding portfolio company proxies to assist in the proxy research process. Upon request, portfolio managers may receive any or all of the above-mentioned research materials to assist in the vote determination process. The final authority and responsibility for proxy voting decisions remains with T. Rowe Price. Decisions with respect to proxy matters are made primarily in light of the anticipated impact of the issue on the desirability of investing in the company from the viewpoint of our clients.

Portfolio managers may decide to vote their proxies consistent with T. Rowe Price’s policies as set by the Proxy Committee and instruct our Proxy Administrator to vote all proxies accordingly. In such cases, he or she may request to review the vote recommendations and sign-off on all the proxies before the votes are cast, or may choose only to sign-off on those votes cast against management. The portfolio managers are also given the option of reviewing and determining the votes on all proxies without utilizing the vote guidelines of the Proxy Committee. In all cases, the portfolio managers may elect to receive current reports summarizing all proxy votes in his or her client accounts. Portfolio managers who vote their proxies inconsistent with T. Rowe Price guidelines are required to document the rationale for their vote. The Proxy Administrator is responsible for maintaining this documentation and assuring that it adequately reflects the basis for any vote which is cast in opposition to T. Rowe Price policy.

T. Rowe Price Voting Policies

Specific voting guidelines have been adopted by the Proxy Committee for routine anti-takeover, executive compensation and corporate governance proposals, as well as other common shareholder proposals, and are available to clients upon request. The following is a summary of the significant T. Rowe Price policies:

Election of Directors – T. Rowe Price generally supports slates with a majority of independent directors. T. Rowe Price withholds votes for outside directors that do not meet certain criteria relating to their independence or their inability to dedicate sufficient time to their board duties due to their commitments to other boards. We also withhold votes for inside directors serving on compensation, nominating and audit committees and for directors who miss more than one-fourth of the scheduled board meetings. We vote against management efforts to stagger board member terms by withholding votes from directors because a staggered board may act as a deterrent to takeover proposals. T. Rowe Price supports shareholder proposals calling for a majority vote threshold for the election of directors.

Anti-takeover and Corporate Governance Issues – T. Rowe Price generally opposes anti-takeover measures since they adversely impact shareholder rights and limit the ability of shareholders to act on possible transactions. Such anti-takeover mechanisms include classified boards, supermajority voting requirements, dual share classes, and poison pills. We also oppose proposals that give management a “blank check” to create new classes of stock with disparate rights and privileges. We generally support proposals to permit cumulative voting and those that seek to prevent potential acquirers from receiving a takeover premium for their shares. When voting on corporate governance proposals, T. Rowe Price will consider the dilutive impact to shareholders and

the effect on shareholder rights. With respect to proposals for the approval of a company’s auditor, we typically oppose auditors who have a significant non-audit relationship with the company.

Executive Compensation Issues – T. Rowe Price’s goal is to assure that a company’s equity-based compensation plan is aligned with shareholders’ long-term interests. While we evaluate most plans on a case-by-case basis, T. Rowe Price generally opposes compensation packages that provide what we view as excessive awards to a few senior executives or that contain excessively dilutive stock option grants based on a number of criteria such as the costs associated with the plan, plan features, burn rates which are excessive in relation to the company’s peers, dilution to shareholders and comparability to plans in the company’s peer group. We generally oppose efforts to reprice options in the event of a decline in value of the underlying stock.

Social and Corporate Responsibility Issues - Vote determinations for corporate responsibility issues are made by the Proxy Committee using ISS voting recommendations. T. Rowe Price generally votes with a company’s management on the following social issues unless the issue has substantial economic implications for the company’s business and operations which have not been adequately addressed by management:

· Corporate environmental practices;

· Board diversity;

· Employment practices and employment opportunity;

· Military, nuclear power and related energy issues;

· Tobacco, alcohol, infant formula and safety in advertising practices;

· Economic conversion and diversification;

· International labor practices and operating policies;

· Genetically-modified foods;

· Animal rights; and

· Political contributions/activities and charitable contributions.

Global Portfolio Companies – ISS applies a two-tier approach to determining and applying global proxy voting policies. The first tier establishes baseline policy guidelines for the most fundamental issues, which span the corporate governance spectrum without regard to a company’s domicile. The second tier takes into account various idiosyncrasies of different countries, making allowances for standard market practices, as long as they do not violate the fundamental goals of good corporate governance. The goal is to enhance shareholder value through effective use of shareholder franchise, recognizing that application of policies developed for U.S. corporate governance issues are not necessarily appropriate for foreign markets. The Proxy Committee has reviewed ISS’ general global policies and has developed international proxy voting guidelines which in most instances are consistent with ISS recommendations.

Index and Passively Managed Accounts – Proxy voting for index and other passively-managed portfolios is administered by the Investment Services Group using ISS voting recommendations when their recommendations are consistent with T. Rowe Price’s policies as set by the Proxy Committee. If a portfolio company is held in both an actively managed account and an index account, the index account will default to the vote as determined by the actively managed proxy voting process.

Divided Votes – In the unusual situation where a decision is made which is contrary to the policies established by the Proxy Committee, or differs from the vote for any other client or Price Fund, the Investment Services Group advises the portfolio managers involved of the divided vote. The persons representing opposing views may wish to confer to discuss their positions. Opposing votes will be cast only if it is determined to be prudent to do so in light of each client’s investment program and objectives. In such instances, it is the normal practice for the portfolio manager to document the reasons for the vote if it is against T. Rowe Price policy. The Proxy Administrator is responsible for assuring that adequate documentation is maintained to reflect the basis for any vote which is cast in opposition to T. Rowe Price policy.

Shareblocking – Shareblocking is the practice in certain foreign countries of “freezing” shares for trading purposes in order to vote proxies relating to those shares. In markets where shareblocking applies, the custodian or sub-custodian automatically freezes shares prior to a shareholder meeting once a proxy has been voted. Shareblocking typically takes place between one and fifteen (15) days before the shareholder meeting, depending on the market. In markets where shareblocking applies, there is a potential for a pending trade to fail if trade settlement takes place during the blocking period. Depending upon market practice and regulations, shares can sometimes be unblocked, allowing the trade to settle but negating the proxy vote. T. Rowe Price’s policy is generally to vote all shares in shareblocking countries unless, in its experience, trade settlement would be unduly restricted.

Securities on Loan – The T. Rowe Price Funds and our institutional clients may participate in securities lending programs to generate income. Generally, the voting rights pass with the securities on loan; however, lending agreements give the lender the right to terminate the loan and pull back the loaned shares provided sufficient notice is given to the custodian bank in advance of the voting deadline. T. Rowe Price’s policy is generally not to vote securities on loan unless the portfolio manager has knowledge of a material voting event that could affect the value of the loaned securities. In this event, the portfolio manager has the discretion to instruct the Proxy Administrator to pull back the loaned securities in order to cast a vote at an upcoming shareholder meeting.

Number of
Accounts

TOTAL Assets

· registered investment companies:

337.1 million

· other pooled investment vehicles:

· other accounts:

As of 12/31/2006.

Once the vote has been determined, the Proxy Administrator enters votes electronically into ISS’s ProxyMaster system. ISS then transmits the votes to the proxy agents or custodian banks and

sends electronic confirmation to T. Rowe Price indicating that the votes were successfully transmitted.

On a daily basis, the Proxy Administrator queries the ProxyMaster system to determine newly announced meetings and meetings not yet voted. When the date of the stockholders’ meeting is approaching, the Proxy Administrator contacts the applicable portfolio manager if the vote for a particular client or Price Fund has not yet been recorded in the computer system.

Should a portfolio manager wish to change a vote already submitted, the portfolio manager may do so up until the deadline for vote submission, which varies depending on the company’s domicile.

Monitoring and Resolving Conflicts of Interest

The Proxy Committee is also responsible for monitoring and resolving possible material conflicts between the interests of T. Rowe Price and those of its clients with respect to proxy voting. We have adopted safeguards to ensure that our proxy voting is not influenced by interests other than those of our fund shareholders. While membership on the Proxy Committee is diverse, it does not include individuals whose primary duties relate to client relationship management, marketing, or sales. Since T. Rowe Price’s voting guidelines are pre-determined by the Proxy Committee using recommendations from ISS, an independent third party, application of the T. Rowe Price guidelines by fund portfolio managers to vote fund proxies should in most instances adequately address any possible conflicts of interest. However, the Proxy Committee reviews all proxy votes that are inconsistent with T. Rowe Price guidelines to determine whether the portfolio manager’s voting rationale appears reasonable. The Proxy Committee also assesses whether any business or other relationships between T. Rowe Price and a portfolio company could have influenced an inconsistent vote on that company’s proxy. Issues raising possible conflicts of interest are referred to designated members of the Proxy Committee for immediate resolution prior to the time T. Rowe Price casts its vote. With respect to personal conflicts of interest, T. Rowe Price’s Code of Ethics and Conduct requires all employees to avoid placing themselves in a “compromising position” in which their interests may conflict with those of our clients and restricts their ability to engage in certain outside business activities. Portfolio managers or Proxy Committee members with a personal conflict of interest regarding a particular proxy vote must recuse themselves and not participate in the voting decisions with respect to that proxy.

Specific Conflict of Interest Situations - Voting of T. Rowe Price Group, Inc. common stock (sym: TROW) by certain T. Rowe Price Index Funds will be done in all instances in accordance with T. Rowe Price policy and votes inconsistent with policy will not be permitted. In addition, T. Rowe Price has voting authority for proxies of the holdings of certain T. Rowe Price funds that invest in other T. Rowe Price funds. In cases where the underlying fund of a T. Rowe Price fund-of -funds holds a proxy vote, T. Rowe Price will mirror vote the fund shares held by the fund-of-funds in the same proportion as the votes cast by the shareholders of the underlying funds.

REPORTING AND RECORD RETENTION

Vote Summary Reports will be generated for each client that requests T. Rowe Price to furnish proxy voting records. The report specifies the portfolio companies, meeting dates, proxy proposals, and votes which have been cast for the client during the period and the position taken with respect to each issue. Reports normally cover quarterly or annual periods. All client requests for proxy information will be recorded and fulfilled by the Proxy Administrator.

T. Rowe Price retains proxy solicitation materials, memoranda regarding votes cast in opposition to the position of a company’s management, and documentation on shares voted differently. In addition, any document which is material to a proxy voting decision such as the T. Rowe Price voting guidelines, Proxy Committee meeting materials, and other internal research relating to voting decisions will be kept. Proxy statements received from issuers (other than those which are available on the SEC’s EDGAR database) are kept by ISS in its capacity as voting agent and are available upon request. All proxy voting materials and supporting documentation are retained for six years.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Item 8(a)(1)

The New America High Income Fund (the “Fund”) is managed by an Investment Advisory Committee co-chaired by Mark J. Vaselkiv and Paul Karpers. Messrs. Vaselkiv and Karpers share day-to-day responsibility for managing the Fund and work with the Committee in developing and executing the Fund’s investment program. Their biographies are as follows:

Mark J. Vaselkiv

Mark Vaselkiv is a Vice President of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc., and a Portfolio Manager in the Fixed Income Group, heading taxable high-yield bond management. He serves as President of the T. Rowe Price High Yield Fund and Chairman of the High Yield Fund Investment Advisory Committee. Prior to joining the firm in 1988, he was employed as a Vice President, analyzing and trading high-yield debt securities for Shenkman Capital Management, Inc., New York, and a Private Placement Credit Analyst in the Capital Markets Group of Prudential Insurance Company. Mark earned a B.A. in Political Science from Wheaton College, Illinois, and an M.B.A. in finance from New York University.

Paul A. Karpers, CFA

Paul Karpers is a Vice President of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc., and a High Yield Portfolio Manager/Analyst in the Fixed Income Group. Prior to joining the firm in 1995, he was an Analyst with the Vanguard Group in Philadelphia. Paul earned a B.S. in Finance from LaSalle University and an M.B.A. with concentrations in Finance and Information Systems from New York University. He has also achieved the Chartered Financial Analyst accreditation and is a member of the Association for Investment Management and Research and the Baltimore Securities Analyst Society.

Item 8(a)(2)

Other Accounts:

Mark Vaselkiv:

	Number of Accounts	TOTAL Assets
· registered investment companies:	10	$	6,067.7 million
· other pooled investment vehicles:	7	$	2,688.6 million
· other accounts:	13	$	1,748.3 million
As of 12/31/2006.

Paul Karpers:

None of the accounts listed above have performance-based fees.

Conflicts of Interest

Portfolio managers at T. Rowe Price typically manage multiple accounts. These accounts may include, among others, mutual funds, separate accounts (assets managed on behalf of institutions such as pension funds, colleges and universities, foundations), and commingled trust accounts. Portfolio managers make investment decisions for each portfolio based on the investment objectives, policies, practices and other relevant investment considerations that the managers believe are applicable to that portfolio. Consequently, portfolio managers may purchase (or sell) securities for one portfolio and not another portfolio. T. Rowe Price has adopted brokerage and trade allocation policies and procedures which it believes are reasonably designed to address any potential conflicts associated with managing multiple accounts for multiple clients. Also, as disclosed under the “Portfolio Manager’s Compensation” section, our portfolio managers’ compensation is determined in the same manner with respect to all portfolios managed by the portfolio manager.

Item 8(a)(4)

Ownership of Securities

Portfolio Manager	Fund	Dollar Range of Equity Securities Beneficially Owned*

Mark J. Vaselkiv	New America High Income Fund	None
Paul A. Karpers	New America High Income Fund	None

* As of 12/31/2006.

Item 8(b) – Not applicable.

ITEM 9. PURCHASE 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 of the period that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1)	The Fund’s Code of Ethics for Principal Executive and Senior Financial Officers was filed with the SEC via Edgar on March 7, 2005 as Exhibit 99 to the Registrant’s Annual Report on Form N-CSR (File No. 811-05399) for the fiscal year ended December 31, 2004 and is incorporated by reference herein.

(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.

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/ Robert F. Birch
Name:		Robert F. Birch
Title:		President and Director
Date:		February 27, 2007

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/ Robert F. Birch
Name:		Robert F. Birch
Title:		President
Date:		February 27, 2007

By:	/s/ Ellen E. Terry
Name:		Ellen E. Terry
Title:		Treasurer
Date:		February 27, 2007