nq033113ngf.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:  3/31/2013

ITEM 1.
SCHEDULE OF INVESTMENTS


THE NEW GERMANY FUND, INC.
 
SCHEDULE OF INVESTMENTS — MARCH 31, 2013 (unaudited)
 
Shares
  
Description
  
Value(a)
  
INVESTMENTS IN GERMANY – 86.3%
      
   
COMMON STOCKS – 81.0%
  
   
AEROSPACE &
DEFENSE – 3.2%
  
 
101,650
    
MTU Aero Engines Holding
  
$
9,642,078
    
   
AUTO COMPONENTS – 2.7%
  
 
20,000
    
Continental
    
2,392,748
    
 
63,950
    
ElringKlinger
    
1,939,158
    
 
100,000
    
Leoni
    
3,875,037
    
     
8,206,943
    
   
CHEMICALS – 3.2%
  
 
242,150
    
Symrise
    
9,600,826
    
   
COMPUTERS &
PERIPHERALS – 1.0%
  
 
61,327
    
Wincor Nixdorf
    
3,048,236
    
   
CONSTRUCTION &
ENGINEERING – 4.6%
  
 
100,000
    
Bilfinger Berger
    
10,393,718
    
 
56,567
    
Hochtief*
    
3,681,618
    
     
14,075,336
    
   
ELECTRICAL EQUIPMENT – 0.3%
  
 
24,436
    
SGL Carbon†
    
962,419
    
   
FOOD & STAPLES
RETAILING – 2.4%
  
 
260,000
    
Metro
    
7,397,074
    
   
FOOD PRODUCTS – 3.1%
  
 
9,000
    
KWS Saat
    
3,209,315
    
 
150,000
    
Suedzucker
    
6,339,745
    
     
9,549,060
    
   
HEALTH CARE PROVIDERS &
SERVICES – 0.8%
  
 
76,000
    
Celesio
    
1,428,158
    
 
50,000
    
Rhoen Klinikum
    
1,061,755
    
     
2,489,913
    
   
HOTELS, RESTAURANTS &
LEISURE – 1.8%
  
 
500,000
    
TUI*†
    
5,368,741
    
   
INDUSTRIAL
CONGLOMERATES – 1.7%
  
 
110,000
    
Rheinmetall
    
5,091,485
    
Shares
  
Description
  
Value(a)
  
   
INSURANCE – 4.0%
  
 
80,000
    
Hannover Rueckversicherung
  
$
6,279,073
    
 
200,000
    
Talanx*
    
6,042,800
    
     
12,321,873
    
   
INTERNET SOFTWARE &
SERVICES – 4.0%
  
 
500,000
    
United Internet
    
12,166,410
    
   
IT SERVICES – 1.0%
  
 
66,500
    
Bechtle
    
3,090,829
    
   
LIFE SCIENCES TOOLS &
SERVICES – 2.3%
  
 
123,450
    
Gerresheimer
    
7,098,008
    
   
MACHINERY – 9.7%
  
 
449,196
    
GEA Group
    
14,813,683
    
 
102,450
    
Gildemeister
    
2,153,853
    
 
60,000
    
KUKA
    
2,619,017
    
 
50,000
    
MAN
    
5,379,002
    
 
283,913
    
MAX Automation†
    
1,617,302
    
 
100,000
    
NORMA Group
    
3,153,518
    
     
29,736,375
    
   
MEDIA – 7.1%
  
 
123,450
    
Axel Springer†
    
5,352,999
    
 
175,000
    
Kabel Deutschland Holding
    
16,157,530
    
     
21,510,529
    
   
METALS & MINING – 2.3%
  
 
110,000
    
Aurubis
    
6,995,589
    
   
PHARMACEUTICALS – 1.6%
  
 
120,000
    
Stada Arzneimittel
    
4,916,333
    
   
PROFESSIONAL SERVICES – 1.3%
  
 
33,250
    
Bertrandt
    
3,881,130
    
   
REAL ESTATE MANAGEMENT & DEVELOPMENT – 4.2%
  
 
150,000
    
Deutsche Euroshop
    
6,071,340
    
 
585,668
    
TAG Immobilien
    
6,708,540
    
     
12,779,880
    
   
SEMICONDUCTORS &
SEMICONDUCTOR
EQUIPMENT – 2.7%
  
 
240,000
    
Dialog Semiconductor*
    
3,186,227
    
 
450,000
    
Suss Microtec*
    
5,145,294
    
     
8,331,521
    
 

 
 
6
 
 
 
 
THE NEW GERMANY FUND, INC.
 
SCHEDULE OF INVESTMENTS — MARCH 31, 2013 (unaudited) (continued)
 
Shares
  
Description
  
Value(a)
  
INVESTMENTS IN GERMANY – 86.3% (continued)
      
   
SOFTWARE – 2.7%
  
 
151,950
    
PSI
  
$
3,062,952
    
 
132,950
    
Software
    
5,143,335
    
     
8,206,287
    
   
SPECIALTY RETAIL – 2.3%
  
 
47,500
    
Fielmann
    
4,386,834
    
 
113,950
    
Tom Tailor Holding
    
2,566,634
    
     
6,953,468
    
   
TEXTILES, APPAREL & LUXURY
GOODS – 3.1%
  
 
55,000
    
Gerry Weber International
    
2,402,177
    
 
62,500
    
Hugo Boss
    
7,008,352
    
     
9,410,529
    
   
THRIFTS & MORTGAGE
FINANCE – 1.9%
  
 
277,900
    
Aareal Bank*
    
5,892,322
    
   
TRADING COMPANIES &
DISTRIBUTORS – 3.6%
  
 
52,250
    
Brenntag
    
8,163,167
    
 
200,000
    
Kloeckner*
    
2,834,767
    
     
10,997,934
    
   
TRANSPORTATION
INFRASTRUCTURE – 2.4%
  
 
132,950
    
Fraport
    
7,456,641
    
       
Total Common Stocks
(cost $176,862,317)
    
247,177,769
    
   
PREFERRED STOCKS – 5.3%
  
   
HEALTH CARE EQUIPMENT &
SUPPLIES – 1.8%
  
 
13,500
    
Draegerwerk
(cost $1,334,248)†
    
1,744,632
    
 
35,000
    
Sartorius
(cost $383,052)
    
3,748,691
    
     
5,493,323
    
   
MACHINERY – 1.4%
  
 
90,250
    
Jungheinrich
(cost $3,012,078)
    
3,795,312
    
 
5,366
    
MAN
(cost $499,279)
    
576,105
    
     
4,371,417
    
Shares
  
Description
  
Value(a)
  
   
MEDIA – 2.1%
  
 
180,000
    
ProSiebenSat.1 Media
(cost $3,744,901)
  
$
6,430,175
    
       
Total Preferred Stocks
(cost $8,973,558)
    
16,294,915
    
       
Total Investments in Germany
(cost $185,835,875)
    
263,472,684
    
INVESTMENTS IN NETHERLANDS – 10.7%
      
   
AEROSPACE & DEFENSE – 9.7%
  
 
580,000
    
EADS
    
29,535,450
    
   
LIFE SCIENCES TOOLS &
SERVICES – 1.0%
  
 
152,787
    
QIAGEN*
    
3,186,633
    
       
Total Investments in Netherlands
(cost $15,755,098)
    
32,722,083
    
       
Total Investments in Common and
Preferred Stocks – 97.0%
(cost $201,590,973)
    
296,194,767
    
SECURITIES LENDING COLLATERAL – 3.1%
      
 
9,439,301
    
Daily Assets Fund
Institutional, 0.14%
(cost $9,439,301)(b)(c)
    
9,439,301
    
CASH EQUIVALENTS – 1.0%
      
 
2,896,077
    
Central Cash Management
Fund, 0.12%
(cost $2,896,077)(c)
    
2,896,077
    
       
Total Investments – 101.1%
(cost $213,926,351)**
    
308,530,145
    
       
Other Assets and Liabilities,
Net – (1.1%)
    
(3,311,352
)
  
       
NET ASSETS – 100.0%
  
$
305,218,793
    
 
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.
 

 
 
7
 
 
 
 
THE NEW GERMANY FUND, INC.
 
SCHEDULE OF INVESTMENTS — MARCH 31, 2013 (unaudited) (continued)
 
*  Non-income producing security.
**  The cost for federal income tax purposes was $217,561,140. At March 31, 2013, net unrealized appreciation for all securities based on tax cost was $90,969,005. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $100,958,948 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $9,989,943.
†  All or a portion of these securities were on loan. The value of all securities loaned at March 31, 2013 amounted to $9,037,614, which is 3.0% 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.
 

 
 
8
 
 
 
 
THE NEW GERMANY FUND, INC.
 
SCHEDULE OF INVESTMENTS — MARCH 31, 2013 (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 inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used as of March 31, 2013 in valuing the Fund's investments.
Category
  
Level 1
  
Level 2
  
Level 3
  
Total
  
Common Stocks and/or Other Equity Investments(1)
  
Germany
  
$
263,472,684
    
$
–
    
$
–
    
$
263,472,684
    
Netherlands
    
32,722,083
      
–
      
–
      
32,722,083
    
Short-Term Instruments(1)
    
12,335,378
      
–
      
–
      
12,335,378
    
Total
  
$
308,530,145
    
$
–
    
$
–
    
$
308,530,145
    
 
There have been no transfers between fair value measurement levels during the period ended March 31, 2013.
 
 
(1) See Schedule of Investments for additional detailed categorizations.
 

 
 
9
 
 
 
 


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/W. Douglas Beck
W. Douglas Beck
President
   
Date:
May 17, 2013


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/W. Douglas Beck
W. Douglas Beck
President
   
Date:
May 17, 2013
   
   
   
By:
/s/Paul Schubert
Paul Schubert
Chief Financial Officer and Treasurer
   
Date:
May 17, 2013