Edgar Filing: NEW GERMANY FUND INC

nq033114ngf.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

_______________________________

Investment Company Act file number: 811-05983

The New Germany Fund, Inc.

(Exact name of registrant as specified in charter)

345 Park Avenue

New York, NY 10154

(Address of principal executive offices) (Zip code)

Paul Schubert

60 Wall Street

New York, NY 10005

(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 250-3220

Date of fiscal year end: 12/31

Date of reporting period: 3/31/2014

ITEM 1.

SCHEDULE OF INVESTMENTS

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2014 (unaudited)

Shares		Description	Value(a)
INVESTMENTS IN GERMANY – 84.6%
		COMMON STOCKS – 82.0%
		AEROSPACE & DEFENSE – 0.6%
	21,467	MTU Aero Engines Holding	$	1,995,715
		AUTO COMPONENTS – 2.1%
	50,112	Leoni		3,658,073
	209,967	SAF-Holland*		3,268,271
				6,926,344
		CHEMICALS – 5.7%
	103,512	Evonik Industries*		4,034,139
	179,559	Symrise		8,972,546
	50,326	Wacker Chemie		6,146,868
				19,153,553
		COMMERCIAL SERVICES & SUPPLIES – 2.1%
	55,726	Bilfinger Berger		7,072,144
		CONSTRUCTION & ENGINEERING – 1.0%
	38,518	Hochtief†		3,498,081
		DIVERSIFIED TELECOMMUNICATION SERVICES – 1.1%
	451,460	Telefonica Deutschland Holding		3,599,801
		ELECTRICAL EQUIPMENT – 5.6%
	505,392	Nordex*		8,162,754
	161,348	OSRAM Licht Group*		10,465,076
				18,627,830
		ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 2.0%
	23,220	Isra Vision		1,679,013
	285,869	Jenoptik		5,188,401
				6,867,414
		FOOD & STAPLES RETAILING – 2.3%
	192,455	Metro		7,857,209
		HEALTH CARE PROVIDERS & SERVICES – 2.3%
	236,837	Rhoen Klinikum		7,588,453
		HEALTH CARE TECHNOLOGY – 0.2%
	20,282	CompuGroup Medical		508,701
Shares		Description	Value(a)
		HOTELS, RESTAURANTS & LEISURE – 2.5%
	504,931	TUI†	$	8,419,729
		INDUSTRIAL CONGLOMERATES – 2.9%
	138,087	Rheinmetall		9,714,697
		INSURANCE – 4.1%
	90,791	Hannover Rueck		8,123,981
	157,801	Talanx		5,678,026
				13,802,007
		INTERNET SOFTWARE & SERVICES – 4.5%
	178,319	United Internet		8,376,096
	47,383	XING		6,817,165
				15,193,261
		IT SERVICES – 3.4%
	46,102	Bechtle		3,972,729
	177,235	Wirecard		7,356,736
				11,329,465
		LIFE SCIENCES TOOLS & SERVICES – 1.0%
	36,867	MorphoSys*		3,419,272
		MACHINERY – 9.1%
	167,718	Deutz		1,413,836
	89,773	DMG MORI SEIKI		2,750,829
	32,513	Duerr		2,509,145
	276,915	GEA Group		12,662,037
	64,301	Krones		6,142,668
	464,528	M.A.X Automation†		3,149,617
	31,766	NORMA Group		1,683,872
				30,312,004
		MEDIA – 5.9%
	62,389	Axel Springer		3,994,121
	252,328	ProSiebenSat.1 Media		11,551,698
	478,646	Sky Deutschland*		4,129,234
				19,675,053
		METALS & MINING – 2.1%
	80,035	Aurubis†		4,348,429
	70,572	Salzgitter		2,790,254
				7,138,683
		PHARMACEUTICALS – 1.3%
	98,310	Stada Arzneimittel		4,208,718

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2014 (unaudited) (continued)

Shares		Description	Value(a)
INVESTMENTS IN GERMANY – 84.6% (continued)
		REAL ESTATE MANAGEMENT & DEVELOPMENT – 4.1%
	183,650	Deutsche Annington Immobilien*	$	5,241,454
	129,828	LEG Immobilien		8,518,189
				13,759,643
		SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 2.5%
	103,342	Dialog Semiconductor*		2,553,512
	721,674	Kontron		4,943,853
	17,280	SMA Solar Technology†		916,822
				8,414,187
		SOFTWARE – 0.7%
	30,027	Nemetschek		2,482,813
		TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS – 2.6%
	119,042	Wincor Nixdorf†		8,555,300
		TEXTILES, APPAREL & LUXURY GOODS – 2.1%
	141,182	Gerry Weber International†		6,982,863
		THRIFTS & MORTGAGE FINANCE – 2.0%
	151,234	Aareal Bank*		6,653,667
		TRADING COMPANIES & DISTRIBUTORS – 3.7%
	55,238	Brenntag		10,250,028
	147,465	Kloeckner*		2,175,486
				12,425,514
		TRANSPORTATION INFRASTRUCTURE – 0.4%
	15,857	Fraport		1,184,844
		WIRELESS TELECOMMUNICATION SERVICES – 2.1%
	204,095	Freenet		7,139,869
		Total Common Stocks (cost $188,464,563)		274,506,834
Shares		Description	Value(a)
		PREFERRED STOCKS – 2.6%
		CONSTRUCTION MATERIALS – 1.0%
	15,282	Sto (cost $2,584,806)	$	3,155,860
		HEALTH CARE EQUIPMENT & SUPPLIES – 1.1%
	30,665	Draegerwerk† (cost $3,559,931)		3,767,851
		MACHINERY – 0.5%
	23,542	Jungheinrich (cost $671,727)		1,784,053
		Total Preferred Stocks (cost $6,816,464)		8,707,764
		Total Investments in Germany (cost $195,281,027)		283,214,598
INVESTMENTS IN LUXEMBOURG – 2.9%
		MEDIA – 2.9%
	85,513	RTL Group		9,739,928
		Total Investments in Luxembourg (cost $6,158,507)		9,739,928
INVESTMENTS IN NETHERLANDS – 11.5%
		AEROSPACE & DEFENSE – 9.2%
	432,113	Airbus Group NV		30,959,781
		LIFE SCIENCES TOOLS & SERVICES – 2.3%
	362,835	QIAGEN*		7,605,349
		Total Investments in Netherlands (cost $16,512,611)		38,565,130
INVESTMENTS IN SWITZERLAND – 1.0%
		CLOSED-END FUNDS – 1.0%
		HEALTH CARE – 1.0%
	18,312	BB Biotech*†		3,218,822
		Total Investments in Switzerland (cost $3,567,550)		3,218,822
		Total Investments in Common and Preferred Stocks and Closed-End Funds – 100.0% (cost $221,519,695)		334,738,478

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2014 (unaudited) (continued)

Shares		Description	Value(a)
SECURITIES LENDING COLLATERAL – 5.1%
	17,155,444	Daily Assets Fund Institutional, 0.07% (cost $17,155,444)(b)(c)	$	17,155,444
CASH EQUIVALENTS – 0.2%
	383,428	Central Cash Management Fund, 0.05% (cost $383,428)(c)		383,428
		Total Investments – 105.3% (cost $239,058,567)**		352,277,350
		Other Assets and Liabilities, Net – (5.3%)		(17,421,670	)
		NET ASSETS — 100.0%	$	334,855,680

For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.

* Non-income producing security.

** The cost for federal income tax purposes was $239,847,055. At March 31, 2014, net unrealized appreciation for all securities based on tax cost was $112,430,295. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $114,254,158 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $1,823,863.

† All or a portion of these securities were on loan. The value of all securities loaned at March 31, 2014 amounted to $16,345,910, which is 4.9% of net assets.

(a) Value stated in U.S. dollars.

(b) Represents collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates.

(c) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.

For purposes of its industry concentration policy, the Fund classifies issuers of portfolio securities at the industry sub-group level. Certain of the categories in the above Schedule of Investments consist of multiple industry sub-groups or industries.

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2014 (unaudited) (continued)

Fair Value Measurements

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2014 in valuing the Fund's investments.

Assets	Level 1		Level 2		Level 3		Total
Common Stocks and/or Other Equity Investments(1)
Germany	$	283,214,598	$	—	$	—	$	283,214,598
Netherlands		38,565,130		—		—		38,565,130
Luxembourg		9,739,928		—		—		9,739,928
Switzerland		3,218,822		—		—		3,218,822
Short-Term Instruments(1)		17,538,872		—		—		17,538,872
Total	$	352,277,350	$	—	$	—	$	352,277,350

There have been no transfers between fair value measurement levels during the period ended March 31, 2014.

(1) See Schedule of Investments for additional detailed categorizations.

ITEM 2.	CONTROLS AND PROCEDURES

	(a) The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

	(b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

ITEM 3.	EXHIBITS

	Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

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.

Registrant:	The New Germany Fund, Inc.

By:	/s/Brian E. Binder Brian E. Binder President

Date:	May 23, 2014

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/Brian E. Binder Brian E. Binder President

Date:	May 23, 2014



By:	/s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer

Date:	May 23, 2014