Edgar Filing: NEW GERMANY FUND INC

nq093013ngf.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: 9/30/2013

ITEM 1.

SCHEDULE OF INVESTMENTS

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 2013 (unaudited)

Shares		Description			Value(a)
INVESTMENTS IN GERMANY – 82.4%
		COMMON STOCKS – 79.1%
		AEROSPACE & DEFENSE – 1.5%
	57,769	MTU Aero Engines Holding			$	5,398,628
		AUTO COMPONENTS – 3.6%
	63,950	ElringKlinger				2,878,225
	100,000	Leoni				6,083,311
	288,201	SAF-Holland*				3,529,442
						12,490,978
		CHEMICALS – 1.9%
	150,000	Symrise				6,646,580
		COMPUTERS & PERIPHERALS – 2.5%
	137,257	Wincor Nixdorf				8,573,582
		CONSTRUCTION & ENGINEERING – 3.9%
	85,015	Bilfinger Berger				8,927,282
	53,434	Hochtief				4,665,964
						13,593,246
		DIVERSIFIED TELECOMMUNICATION SERVICES – 1.1%
	478,205	Telefonica Deutschland Holding				3,775,869
		ELECTRICAL EQUIPMENT – 5.0%
	675,778	Nordex*†				9,885,343
	161,597	OSRAM Licht*				7,587,955
						17,473,298
		ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 1.5%
	329,611	Jenoptik				5,156,102
		FOOD & STAPLES RETAILING – 4.2%
	368,396	Metro				14,606,445
		FOOD PRODUCTS – 0.8%
	8,502	KW	S	Saat		2,956,761
		HEALTH CARE PROVIDERS & SERVICES – 1.1%
	165,306	Celesio				3,722,236
		HEALTH CARE TECHNOLOGY – 1.4%
	203,090	CompuGroup Medical				4,957,778

Shares		Description	Value(a)
		HOTELS, RESTAURANTS & LEISURE – 1.7%
	472,302	TUI*	$	6,035,840
		INDUSTRIAL CONGLOMERATES – 1.7%
	101,470	Rheinmetall		5,831,522
		INSURANCE – 3.1%
	323,788	Talanx		10,909,933
		INTERNET SOFTWARE & SERVICES – 3.9%
	344,780	United Internet		13,063,576
	3,952	XING		430,823
				13,494,399
		IT SERVICES – 3.0%
	66,500	Bechtle		3,398,389
	208,221	Wirecard		7,124,420
				10,522,809
		LIFE SCIENCES TOOLS & SERVICES – 2.0%
	59,145	Gerresheimer		3,543,950
	42,508	Morphosys*		3,301,178
				6,845,128
		MACHINERY – 9.8%
	50,000	Duerr		3,673,261
	340,000	GEA Group		13,965,971
	106,330	Krones		9,043,220
	353,913	M.A.X Automation†		2,504,726
	100,000	NORMA Group		4,818,745
				34,005,923
		MEDIA – 3.8%
	88,000	Axel Springer		4,895,445
	75,504	ProSiebenSat.1 Media		3,208,201
	551,887	Sky Deutschland*		5,085,053
				13,188,699
		METALS & MINING – 2.6%
	92,281	Aurubis		5,593,760
	81,370	Salzgitter		3,382,025
				8,975,785
		PHARMACEUTICALS – 1.7%
	113,353	Stada Arzneimittel		5,749,797

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 2013 (unaudited) (continued)

Shares		Description	Value(a)
INVESTMENTS IN GERMANY – 82.4% (continued)
		REAL ESTATE MANAGEMENT & DEVELOPMENT – 2.4%
	144,152	Deutsche Annington Immobilien*	$	3,706,263
	107,748	Deutsche Euroshop		4,670,850
				8,377,113
		SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 2.0%
	119,155	Dialog Semiconductor*		2,280,748
	721,674	Kontron		4,624,055
				6,904,803
		TEXTILES, APPAREL & LUXURY GOODS – 3.7%
	126,997	Gerry Weber International		5,237,200
	59,038	Hugo Boss		7,639,103
				12,876,303
		THRIFTS & MORTGAGE FINANCE – 2.7%
	306,454	Aareal Bank*		9,577,348
		TRADING COMPANIES & DISTRIBUTORS – 3.7%
	63,690	Brenntag		10,605,102
	170,029	Kloeckner*		2,305,434
				12,910,536
		TRANSPORTATION INFRASTRUCTURE – 0.8%
	40,618	Fraport		2,851,547
		WIRELESS TELECOMMUNICATION SERVICES – 2.0%
	285,896	Freenet		6,919,250
		Total Common Stocks (cost $190,289,287)		275,328,238
		PREFERRED STOCKS – 3.3%
		CONSTRUCTION MATERIALS – 0.7%
	13,405	Sto (cost $2,226,806)		2,420,736
Shares		Description	Value(a)
		HEALTH CARE EQUIPMENT & SUPPLIES – 1.3%
	35,357	Draegerwerk† (cost $4,191,604)	$	4,509,400
		MACHINERY – 1.3%
	76,606	Jungheinrich (cost $3,321,274)		4,475,660
		Total Preferred Stocks (cost $9,739,684)		11,405,796
		Total Investments in Germany (cost $200,028,972)		286,734,034
INVESTMENTS IN NETHERLANDS – 11.7%
		AEROSPACE & DEFENSE – 9.9%
	538,424	EADS		34,313,198
		LIFE SCIENCES TOOLS & SERVICES – 1.8%
	300,000	QIAGEN*		6,468,973
		Total Investments in Netherlands (cost $17,538,281)		40,782,171
INVESTMENTS IN LUXEMBOURG – 4.0%
		MEDIA – 4.0%
	138,294	RTL Group		14,037,330
		Total Investments in Luxembourg (cost $10,409,852)		14,037,330
		Total Investments in Common and Preferred Stocks – 98.1% (cost $227,977,104)		341,553,535
SECURITIES LENDING COLLATERAL – 2.0%
	6,854,803	Daily Assets Fund Institutional, 0.09% (cost $6,854,803)(b)(c)		6,854,803

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 2013 (unaudited) (continued)

Shares		Description	Value(a)
CASH EQUIVALENTS – 0.8%
	2,740,270	Central Cash Management Fund, 0.05% (cost $2,740,270)(c)	$	2,740,270
		Total Investments – 100.9% (cost $237,572,178)**		351,148,608
		Other Assets and Liabilities, Net – (0.9%)		(3,181,152	)
		NET ASSETS – 100.0%	$	347,967,456

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 $241,206,967. At September 30, 2013, net unrealized appreciation for all securities based on tax cost was $109,941,641. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $111,794,744 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $1,853,103.

† All or a portion of these securities were on loan. The value of all securities loaned at September 30, 2013 amounted to $6,336,168, which is 1.8% 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, 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 September 30, 2013 in valuing the Fund's investments.

Category	Level 1		Level 2		Level 3		Total
Common Stocks and/or Other Equity Investments(1)
Germany	$	286,734,034	$	—	$	—	$	286,734,034
Netherlands		40,782,171		—		—		40,782,171
Luxembourg		14,037,330		—		—		14,037,330
Short-Term Instruments(1)		9,595,073		—		—		9,595,073
Total	$	351,148,608	$	—	$	—	$	351,148,608

There have been no transfers between fair value measurement levels during the period ended September 30, 2013.

(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/Robert Kendall Robert Kendall President

Date:	November 22, 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/Robert Kendall Robert Kendall President

Date:	November 22, 2013



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

Date:	November 22, 2013