![]() Distributions are assumed to be reinvested at prices obtained under the Fund's dividend reinvestment plan. * Returns are historical and are calculated by determining the percentage change stock price or NAV with all distributions reinvested. ![]() Unlike the Fund, the Index has no trading activity, expenses or leverage. The Credit Suisse High Yield Index (the "Index") is an unmanaged index. Total return assumes the reinvestment of dividends. Past performance is no guarantee of future results. Sources: Credit Suisse and The New America High Income Fund, Inc. In a favorable high yield market, the leverage increases the Fund's total return. In 2022's declining high yield market environment, the Fund's NAV fell more than it would have if the Fund did not have a leveraged structure. Leverage also magnifies the effects of price movements on the Fund's NAV per share. The Fund's leverage produces a higher dividend for stockholders than the same portfolio would produce without leverage. The dividend can be affected by portfolio results, the cost and amount of leverage, market conditions, how fully invested the portfolio is, and operating expenses, among other factors. ![]() We remind our stockholders that there is no certainty that the dividend will remain at the current level. While the leverage remains a contributor to the dividend, it is contributing significantly less than in recent years. At the end of 2022, the Fund was paying 5.32% in interest on leverage and earning a market value-weighted current yield of 7.39%, for a spread of only 2.07%. At year-end 2021, the Fund was paying 0.95% in interest on borrowings and earning a market value-weighted current yield of 6.01% on the portfolio, for a spread of 5.06%. The extraordinary year-over-year increase in the cost of the leverage resulted in a significant narrowing of the spread between the interest rate paid on the Facility and the market value-weighted average current yield earned on the portfolio. ![]() The interest rate on the Facility at year-end was approximately 5.32%, more than five times the rate of 0.95% as of December 31, 2021. The rate paid on the Facility rose throughout 2022 as the Federal Reserve increased the Federal Funds rate seven times in the period. Amounts borrowed under the Facility bear interest at an adjustable rate based on a margin above the Secured Overnight Financing Rate ("SOFR"). The dividend yield based upon the DecemNAV of $9.78 was 6.16%.Īs of December 31st, the Fund had outstanding borrowings of $84 million through its credit facility with the Bank of Nova Scotia (the "Facility"), unchanged from the level of borrowings on June 30th. The dividend yield for a share of common stock purchased at the market price of $9.33 on Decemwas 6.45%. During the period, the Fund paid dividends totaling $0.602 per share, which included a special dividend of $0.052 per share. The market price for the Fund's shares ended the period at $6.60, representing a market price discount of approximately 12.8%. The Fund's net asset value (the "NAV") per share was $7.57 as of December 31st. (the "Fund") for the year ended December 31, 2022. ![]() We are pleased to report to our stockholders on the results of The New America High Income Fund, Inc. ![]()
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