Edgar Filing: NEW GERMANY FUND INC

nq093014ngf.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: 9/30/2014

ITEM 1.

SCHEDULE OF INVESTMENTS

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 2014 (unaudited)

Shares		Description	Value(a)
INVESTMENTS IN GERMANY – 80.8%
		COMMON STOCKS – 78.0%
		AEROSPACE & DEFENSE – 1.2%
	39,647	MTU Aero Engines	$	3,384,209
		AUTO COMPONENTS – 1.4%
	50,112	Leoni		2,734,807
	99,805	SAF-Holland		1,230,874
				3,965,681
		CHEMICALS – 8.8%
	181,961	Evonik Industries		6,304,674
	230,712	Symrise		12,284,966
	48,174	Wacker Chemie		5,828,056
				24,417,696
		COMMERCIAL SERVICES & SUPPLIES – 1.1%
	47,098	Bilfinger Berger		2,986,021
		CONSTRUCTION & ENGINEERING – 0.5%
	20,526	Hochtief		1,412,800
		DIVERSIFIED TELECOMMUNICATION SERVICES – 0.8%
	432,154	Telefonica Deutschland Holding		2,259,119
		ELECTRICAL EQUIPMENT – 4.3%
	211,339	Nordex*		3,897,458
	217,025	OSRAM Licht Group*		8,082,735
				11,980,193
		ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 1.3%
	15,546	Isra Vision		952,052
	179,637	Jenoptik		2,019,900
	31,254	LPKF Laser & Electronics†		549,147
				3,521,099
		FOOD & STAPLES RETAILING – 2.4%
	204,478	Metro*		6,733,709
		HEALTH CARE EQUIPMENT & SERVICES – 0.8%
	43,626	STRATEC Biomedical†		2,263,506
Shares		Description	Value(a)
		HEALTH CARE PROVIDERS & SERVICES – 3.2%
	297,848	Rhoen Klinikum†	$	9,033,746
		HEALTH CARE TECHNOLOGY – 0.3%
	32,437	CompuGroup Medical		776,567
		HOTELS, RESTAURANTS & LEISURE – 1.4%
	268,025	TUI		4,008,765
		INDUSTRIAL CONGLOMERATES – 0.6%
	34,080	Rheinmetall		1,639,550
		INSURANCE – 3.4%
	54,968	Hannover Rueck		4,443,506
	151,053	Talanx		5,024,904
				9,468,410
		INTERNET SOFTWARE & SERVICES – 4.1%
	158,341	United Internet		6,736,883
	45,357	XING		4,827,481
				11,564,364
		IT SERVICES – 1.8%
	20,362	Bechtle		1,557,836
	90,179	Wirecard		3,331,238
				4,889,074
		LIFE SCIENCES TOOLS & SERVICES – 3.0%
	128,970	Evotec*†		504,673
	67,502	Gerresheimer		4,382,772
	35,291	MorphoSys*		3,462,018
				8,349,463
		MACHINERY – 8.4%
	85,934	DMG MORI SEIKI		2,428,971
	34,975	Duerr		2,553,942
	184,953	GEA Group		8,067,645
	55,597	Krones		4,834,133
	30,408	NORMA Group		1,271,681
	4,776	Rational		1,420,219
	88,095	Stabilus*		2,717,089
				23,293,680

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 2014 (unaudited) (continued)

Shares		Description	Value(a)
INVESTMENTS IN GERMANY – 80.8% (continued)
		MEDIA – 7.2%
	59,721	Axel Springer	$	3,287,109
	269,322	ProSiebenSat.1 Media		10,729,300
	458,177	Sky Deutschland*		3,892,996
	95,204	Stroeer Media		2,097,736
				20,007,141
		METALS & MINING – 1.3%
	42,431	Aurubis		2,098,100
	46,608	Salzgitter		1,606,951
				3,705,051
		PHARMACEUTICALS – 0.7%
	51,120	Stada Arzneimittel		2,033,623
		PROFESSIONAL SERVICES – 0.5%
	21,818	Amadeus Fire		1,525,145
		REAL ESTATE MANAGEMENT & DEVELOPMENT – 8.1%
	395,131	Deutsche Annington Immobilien		11,465,456
	160,072	LEG Immobilien		11,090,484
				22,555,940
		SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 2.2%
	98,923	Dialog Semiconductor*		2,778,625
	531,832	Kontron*		3,328,845
				6,107,470
		SPECIALTY RETAIL – 0.8%
	35,316	Fielmann		2,167,022
		TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS – 0.3%
	15,370	Wincor Nixdorf		787,176
		TEXTILES, APPAREL & LUXURY GOODS – 1.9%
	68,319	Gerry Weber International		2,697,119
	20,840	Hugo Boss		2,604,100
				5,301,219
		THRIFTS & MORTGAGE FINANCE – 1.9%
	120,254	Aareal Bank		5,228,014
Shares		Description	Value(a)
		TRADING COMPANIES & DISTRIBUTORS – 2.5%
	112,098	Brenntag	$	5,507,560
	114,899	Kloeckner*		1,580,679
				7,088,239
		WIRELESS TELECOMMUNICATION SERVICES – 1.8%
	195,367	Freenet		5,083,046
		Total Common Stocks (cost $181,873,127)		217,536,738
		PREFERRED STOCKS – 2.8%
		CONSTRUCTION MATERIALS – 0.9%
	15,056	Sto (cost $2,540,671)		2,695,790
		HEALTH CARE EQUIPMENT & SUPPLIES – 1.0%
	30,665	Draegerwerk† (cost $3,559,932)		2,714,321
		SPECIALTY RETAIL – 0.9%
	31,614	Hornbach Holding (cost $3,239,684)		2,498,929
		Total Preferred Stocks (cost $9,340,287)		7,909,040
		Total Investments in Germany (cost $191,213,414)		225,445,778
INVESTMENTS IN NETHERLANDS – 13.2%
		AEROSPACE & DEFENSE – 10.4%
	460,000	Airbus Group NV		28,937,549
		LIFE SCIENCES TOOLS & SERVICES – 2.8%
	347,319	QIAGEN*		7,907,231
		Total Investments in Netherlands (cost $19,110,728)		36,844,780

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 2014 (unaudited) (continued)

Shares		Description		Value(a)
INVESTMENTS IN LUXEMBOURG – 2.7%
		MEDIA – 2.7%
	87,354	RTL Group		$	7,488,396
		Total Investments in Luxembourg (cost $6,352,695)			7,488,396
INVESTMENTS IN SWITZERLAND – 1.3%
		CLOSED-END FUNDS – 1.3%
		HEALTH CARE – 1.3%
	17,529	BB Biotech*			3,413,042
		Total Investments in Switzerland (cost $3,413,542)			3,413,042
		Total Investments in Common and Preferred Stocks – 98.0% (cost $220,090,379)			273,191,996
SECURITIES LENDING COLLATERAL – 3.5%
	9,870,186	Daily Assets Fund Institutional, 0.08% (cost $9,870,186)(b)(c)			9,870,186
Shares			Description	Value(a)
CASH EQUIVALENTS – 2.2%
	6,253,195		Central Cash Management Fund, 0.05% (cost $6,253,195)(c)	$		6,253,195
			Total Investments – 103.7% (cost $236,213,760)**			289,315,377
			Other Assets and Liabilities, Net – (3.7%)			(10,280,966	)
			NET ASSETS – 100.0%	$		279,034,411

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 $237,002,249. At September 30, 2014, net unrealized appreciation for all securities based on tax cost was $52,313,128. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $69,919,924 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $17,606,796.

† All or a portion of these securities were on loan. The value of all securities loaned at September 30, 2014 amounted to $9,515,871, which is 3.4% 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 — SEPTEMBER 30, 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 associated with investing in those securities.

The following is a summary of the inputs used as of September 30, 2014 in valuing the Fund's investments.

Assets	Level 1		Level 2		Level 3		Total
Common Stocks and/or Other Equity Investments(1)
Germany	$	225,445,778	$	—	$	—	$	225,445,778
Netherlands		36,844,780		—		—		36,844,780
Luxembourg		7,488,396		—		—		7,488,396
Switzerland		3,413,042		—		—		3,413,042
Short-Term Instruments(1)		16,123,381		—		—		16,123,381
Total	$	289,315,377	$	—	$	—	$	289,315,377

There have been no transfers between fair value measurement levels during the period ended September 30, 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:	November 21, 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:	November 21, 2014



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

Date:	November 21, 2014