PAGE 1
000 B000000 12/31/95
000 C000000 0000825345
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 U
001 A000000 THE NEW AMERICA HIGH INCOME FUND, INC.
001 B000000 811-5399
001 C000000 6173508610
002 A000000 TEN WINTHROP SQUARE
002 B000000 BOSTON
002 C000000 MA
002 D010000 02110
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
020 A000001 BT SECURITIES
020 B000001 13-4941247
020 C000001 1
020 A000002 DILLON REED
020 B000002 13-1939216
020 C000002 2
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 3
022 A000001 SWISS BANK CORP
022 B000001 13-5424347
022 C000001 495438
022 D000001 0
022 A000002 SMITH BARNEY
022 B000002 13-1912900
022 C000002 416046
022 D000002 12373
022 A000003 AUBREY LANSTON
022 B000003 13-5552129
022 C000003 374946
022 D000003 0
022 A000004 J P MORGAN
022 B000004 13-3224016
<PAGE>
PAGE 2
022 C000004 313066
022 D000004 305
022 A000005 PAINE WEBBER
022 B000005 13-2638166
022 C000005 258236
022 D000005 1072
022 A000006 DONALDSON, LUFKIN, JENRETTE
022 B000006 13-2741729
022 C000006 191259
022 D000006 0
022 A000007 SALOMON BROTHERS
022 B000007 13-3082694
022 C000007 95975
022 D000007 0
022 A000008 GOLDMAN SACHS
022 B000008 13-5108880
022 C000008 21687
022 D000008 20623
022 A000009 CS FIRST
022 B000009 13-3071659
022 C000009 16478
022 D000009 17087
022 A000010 MERRILL LYNCH
022 B000010 13-5674085
022 C000010 15279
022 D000010 17642
023 C000000 2262354
023 D000000 124402
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 2.5
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 94.6
062 Q000000 1.7
062 R000000 0.3
063 A000000 0
063 B000000 6.4
066 A000000 N
071 A000000 155508
071 B000000 153089
<PAGE>
PAGE 3
071 C000000 244331
071 D000000 63
072 A000000 12
072 B000000 26267
072 C000000 74
072 D000000 0
072 E000000 156
072 F000000 782
072 G000000 204
072 H000000 0
072 I000000 143
072 J000000 82
072 K000000 0
072 L000000 23
072 M000000 180
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 66
072 S000000 621
072 T000000 0
072 U000000 0
072 V000000 33
072 W000000 1561
072 X000000 3695
072 Y000000 0
072 Z000000 22802
072AA000000 565
072BB000000 0
072CC010000 21138
072CC020000 0
072DD010000 23662
072DD020000 0
072EE000000 0
073 A010000 0.5000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 6679
074 C000000 0
074 D000000 254964
074 E000000 782
074 F000000 88
074 G000000 0
074 H000000 0
074 I000000 1
074 J000000 192
074 K000000 0
074 L000000 6534
<PAGE>
PAGE 4
074 M000000 59
074 N000000 269299
074 O000000 648
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 3828
074 S000000 100000
074 T000000 164823
074 U010000 34978
074 U020000 0
074 V010000 4.71
074 V020000 0.00
074 W000000 0.0000
074 X000000 5386
074 Y000000 0
075 A000000 0
075 B000000 256114
076 000000 4.75
077 A000000 Y
077 B000000 Y
077 E000000 Y
077 Q010000 N
077 Q020000 N
077 Q030000 N
080 A000000 NATIONAL UNION FIRE INSURANCE COMPANY
080 C000000 750
081 A000000 N
081 B000000 0
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
085 B000000 N
086 A010000 705577
086 A020000 3230
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
<PAGE>
PAGE 5
This report is signed on behalf of The New America High Income Fund, Inc.
City of Boston state of Massachusetts February 28, 1996
The New America High Income Fund, Inc.:
/s/ Ellen E. Terry /s/Paul E. Saidnawey
- ----------------------- ----------------------
Ellen E. Terry Paul E. Saidnawey
Vice President Administrator
<PAGE>
ARTHUR ANDERSEN LLP
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors of
The New America High Income Fund, Inc.:
In planning and performing our audit of the financial statements of The New
America High Income Fund, Inc. for the year ended December 31, 1995, we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of The New America High Income Fund, Inc. is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce,
to a relatively low level, the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses, as defined above, as of
December 31, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/ Arthur Andersen LLP
Boston, Massachusetts
January 26, 1996
<PAGE>
On January 8, 1992, the United States District Court for the District of
Massachusetts dismissed, in their entirety, four separate actions filed in each
case against the Fund, its former Investment Advisor, certain of its officers,
its directors, and certain other parties. The actions purported to be class
actions on behalf of the named plaintiffs and other persons allegedly similarly
situated who purchased Common Stock of the Fund within a specified period. The
actions alleged that the Fund and the other defendants, including the Fund's
underwriters, in connection with its February 1988 public offering, violated
certain federal securities laws by reason of their alleged failure to adequately
disclose material facts in the Fund's prospectus and/or other documents
published by the Fund. Plaintiffs were granted leave to amend their complaint
limited to certain disclosure obligations under the Securities Act of 1933, and
did so. All of the defendants, including the Fund, jointly moved for summary
judgment on July 8, 1992. By memorandum and order dated August 26, 1993, the
court granted the defendants' motion for summary judgment in favor of all
defendants on all claims and entered judgment for defendants on August 27, 1993,
and the plaintiffs appealed. On September 28, 1994, the United States Court of
Appeals for the First Circuit issued an opinion affirming the decision of the
district court in part and reversing it in part. The Court held that the
district court properly entered summary judgment for the defendants as to all
disclosure issues except one. It reversed the district court's decision with
respect to that one issue and remanded the case for further proceedings. The one
remaining issue is whether it was misleading to purchasers in the initial public
offering for the original prospectus to include certain statistics regarding the
average performance of the high yield bond market for a ten year period without
also including different statistics, alleged by the plaintiffs to exist and to
be material, for the six year period prior to the offering. The defendants
jointly moved for summary judgment on this remaining issue on March 31, 1995.
On November 16, 1995, the parties executed a Stipulation and Agreement of
Compromise, Settlement and Release providing for the settlement of the action.
Pursuant to the parties' agreement, the defendants will create a Settlement Fund
amounting in the aggregate to $2,500,000 for distribution, after deduction of
certain fees and expenses, to a class consisting of all persons who purchased
shares of the Fund's common stock between February 19, 1988 and March 26, 1990,
other than the defendants. The Fund will contribute $1,250,000 to the Settlement
Fund, and the balance will be contributed by certain of the underwriters of the
Fund's initial public offering. In addition, the Fund will contribute $7,500 to
a Notice and Administration Fund, to be used for mailing notice to class members
and other administrative purposes. The settlement is subject to the approval of
the Court, which has set April 1, 1996 as the date for a hearing at which it
will consider final approval of the settlement.
If the settlement is approved by the Court and becomes effective in accordance
with its terms, the Company will also release, and receive a reciprocal release
from, the other defendants to the litigation.
The Fund has established a reserve for its share of the Settlement Fund and has
charged $1,250,000 to operations for the year ended December 31, 1995.
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 263747
<INVESTMENTS-AT-VALUE> 262514
<RECEIVABLES> 6726
<ASSETS-OTHER> 28
<OTHER-ITEMS-ASSETS> 31
<TOTAL-ASSETS> 269299
<PAYABLE-FOR-SECURITIES> 648
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3828
<TOTAL-LIABILITIES> 4476
<SENIOR-EQUITY> 100000
<PAID-IN-CAPITAL-COMMON> 267110
<SHARES-COMMON-STOCK> 34978
<SHARES-COMMON-PRIOR> 34372
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 851
<ACCUMULATED-NET-GAINS> (100203)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1233)
<NET-ASSETS> 264823
<DIVIDEND-INCOME> 74
<INTEREST-INCOME> 26267
<OTHER-INCOME> 156
<EXPENSES-NET> 3695
<NET-INVESTMENT-INCOME> 22802
<REALIZED-GAINS-CURRENT> 565
<APPREC-INCREASE-CURRENT> 21138
<NET-CHANGE-FROM-OPS> 44505
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 23662
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 840
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 706
<NET-CHANGE-IN-ASSETS> 23233
<ACCUMULATED-NII-PRIOR> 396
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 782
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3695
<AVERAGE-NET-ASSETS> 256114
<PER-SHARE-NAV-BEGIN> 4.13
<PER-SHARE-NII> .67
<PER-SHARE-GAIN-APPREC> .62
<PER-SHARE-DIVIDEND> .71
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 4.71
<EXPENSE-RATIO> 1.44
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
