Edgar Filing: NEW GERMANY FUND INC

nq033112ngf.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: 3/31/2012

ITEM 1.

SCHEDULE OF INVESTMENTS

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2012 (unaudited)

Shares		Description	Value(a)
INVESTMENTS IN GERMANY – 89.4%
		COMMON STOCKS – 81.3%
		AEROSPACE & DEFENSE – 4.8%
	174,084	MTU Aero Engines Holding	$	14,000,073
		AUTO COMPONENTS – 6.9%
	180,000	Continental*		16,963,993
	120,000	ElringKlinger		3,430,992
				20,394,985
		CHEMICALS – 9.4%
	247,760	Lanxess		20,449,805
	255,000	Symrise		7,368,962
				27,818,767
		COMPUTERS & PERIPHERALS – 2.1%
	127,727	Wincor Nixdorf		6,274,769
		CONSTRUCTION & ENGINEERING – 5.3%
	108,181	Bilfinger Berger		10,146,473
	91,567	Hochtief		5,547,040
				15,693,513
		ELECTRICAL EQUIPMENT – 0.9%
	60,686	SGL Carbon*†		2,775,610
		FOOD PRODUCTS – 3.2%
	9,000	KWS Saat		2,025,516
	230,000	Suedzucker		7,312,697
				9,338,213
		HEALTH CARE PROVIDERS & SERVICES – 0.5%
	80,000	Celesio		1,445,693
		HOUSEHOLD DURABLES – 0.3%
	118,886	Loewe*†		838,307
		INDUSTRIAL CONGLOMERATES – 1.7%
	82,583	Rheinmetall		4,882,375
		INSURANCE – 4.4%
	220,000	Hannover Rueckversicherung		13,049,062
		INTERNET SOFTWARE & SERVICES – 2.5%
	395,966	United Internet		7,450,861
		IT SERVICES – 1.1%
	70,000	Bechtle		3,113,515
		LIFE SCIENCES TOOLS & SERVICES – 1.0%
	70,000	Gerresheimer		3,057,583

Shares		Description	Value(a)
		MACHINERY – 8.7%
	473,046	GEA Group	$	16,290,645
	200,000	Gildemeister*		3,911,203
	298,963	MAX Automation		1,749,379
	17,714	Pfeiffer Vacuum Technology		2,003,948
	440,000	Singulus Technologies*†		1,575,028
				25,530,203
		MEDIA – 4.3%
	130,000	Axel Springer		6,556,092
	100,000	Kabel Deutschland Holding*		6,167,103
				12,723,195
		METALS & MINING – 4.3%
	140,000	Aurubis		7,380,148
	95,000	Salzgitter		5,198,990
				12,579,138
		PROFESSIONAL SERVICES – 0.9%
	35,000	Bertrandt		2,633,437
		REAL ESTATE MANAGEMENT & DEVELOPMENT – 3.6%
	202,041	Deutsche Euroshop		7,116,584
	381,818	TAG Immobilien*†		3,551,642
				10,668,226
		SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 2.3%
	210,000	Aixtron†		3,652,321
	130,000	Dialog Semiconductor*		3,170,711
				6,823,032
		SOFTWARE – 4.0%
	160,000	PSI		3,589,198
	220,000	Software		8,226,710
				11,815,908
		SPECIALTY RETAIL – 2.4%
	50,000	Fielmann†		4,800,113
	120,000	Tom Tailor Holding*		2,134,981
				6,935,094
		TEXTILES, APPAREL & LUXURY GOODS – 0.7%
	5,647	Puma		2,013,885
		THRIFTS & MORTGAGE FINANCE – 0.7%
	100,000	Aareal Bank*		2,016,860

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2012 (unaudited) (continued)

Shares		Description	Value(a)
INVESTMENTS IN GERMANY – 89.4% (continued)
		TRADING COMPANIES & DISTRIBUTORS – 2.3%
	55,000	Brenntag	$	6,725,218
		TRANSPORTATION INFRASTRUCTURE – 3.0%
	140,000	Fraport		8,753,264
		Total Common Stocks (cost $175,267,052)		239,350,786
		PREFERRED STOCKS – 8.1%
		HEALTH CARE EQUIPMENT & SUPPLIES – 2.5%
	30,000	Draegerwerk (cost $3,429,764)		3,355,884
	62,632	Sartorius (cost $691,434)		3,963,919
				7,319,803
		MACHINERY – 1.1%
	95,000	Jungheinrich (cost $3,195,087)		3,106,490
		MEDIA – 2.6%
	295,000	ProSiebenSat.1 Media (cost $6,955,308)		7,570,248
		TEXTILES, APPAREL & LUXURY GOODS – 1.9%
	50,000	Hugo Boss (cost $4,218,358)		5,754,276
		Total Preferred Stocks (cost $18,489,951)		23,750,817
		Total Investments in Germany (cost $193,757,003)		263,101,603
INVESTMENTS IN NETHERLANDS – 10.0%
		AEROSPACE & DEFENSE – 9.3%
	669,645	EADS		27,381,683
		LIFE SCIENCES TOOLS & SERVICES – 0.7%
	125,887	QIAGEN*		1,957,240
		Total Investments in Netherlands (cost $17,490,456)		29,338,923
		Total Investments in Common and Preferred Stocks – 99.4% (cost $211,247,459)		292,440,526

Shares		Description	Value(a)
SECURITIES LENDING COLLATERAL – 2.9%
	8,463,402	Daily Assets Fund Institutional, 0.27% (cost $8,463,402)(b)(c)	$	8,463,402
CASH EQUIVALENTS – 0.7%
	2,134,470	Central Cash Management Fund, 0.11% (cost $2,134,470)(c)		2,134,470
		Total Investments – 103.0% (cost $221,845,331)**		303,038,398
		Other Assets and Liabilities, Net – (3.0%)		(8,838,985	)
		NET ASSETS – 100.0%	$	294,199,413

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 $222,193,203. At March 31, 2012, net unrealized appreciation for all securities based on tax cost was $80,845,195. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $92,274,728 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $11,429,533.

† All or a portion of these securities were on loan. The value of all securities loaned at March 31, 2012 amounted to $8,097,231, which is 2.8% 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 — MARCH 31, 2012 (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, 2012 in valuing the Fund's investments.

Category	Level 1		Level 2		Level 3		Total
Common Stocks and/or Other Equity Investments(d)
Germany	$	263,101,603	$	—	$	—	$	263,101,603
Netherlands		29,338,923		—		—		29,338,923
Short-Term Instruments(d)		10,597,872		—		—		10,597,872
Total	$	303,038,398	$	—	$	—	$	303,038,398

There have been no transfers between Level 1 and Level 2 fair value measurements during the period ended March 31, 2012.

(d) 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/W. Douglas Beck W. Douglas Beck President

Date:	May 24, 2012

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 24, 2012



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

Date:	May 24, 2012