nq033110ngf.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  811-5983
 
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
345 Park Avenue
New York, NY  10154-0004
(Name and address of agent for service)
 
Registrant's telephone number, including area code:  (212) 454-7190
 
Date of fiscal year end:  12/31
 
Date of reporting period: 3/31/10

ITEM 1.
SCHEDULE OF INVESTMENTS


 
THE NEW GERMANY FUND, INC.
 
 
SCHEDULE OF INVESTMENTS — MARCH 31, 2010 (unaudited)
 
Shares
  
Description
  
Value(a)
  
INVESTMENTS IN GERMAN
SECURITIES – 92.8%
      
   
COMMON STOCKS – 90.8%
  
   
AEROSPACE &
DEFENSE – 2.7%
  
 
129,084
    
MTU Aero Engines Holding
  
$
7,521,409
    
   
AIRLINES – 0.3%
  
 
170,000
    
Air Berlin*†
    
959,159
    
   
AUTO COMPONENTS – 4.6%
  
 
90,000
    
Continental*
    
4,570,841
    
 
188,344
    
ElringKlinger
    
4,698,013
    
 
150,000
    
Leoni
    
3,483,879
    
     
12,752,733
    
   
CHEMICALS – 12.8%
  
 
317,760
    
Lanxess
    
14,663,785
    
 
360,000
    
Symrise
    
8,585,316
    
 
79,364
    
Wacker Chemie†
    
11,852,068
    
     
35,101,169
    
   
COMMERCIAL BANKS – 1.2%
  
 
100,000
    
Deutsche Postbank*
    
3,213,339
    
   
COMPUTERS &
PERIPHERALS – 3.2%
  
 
127,727
    
Wincor Nixdorf
    
8,664,732
    
   
CONSTRUCTION &
ENGINEERING – 9.2%
  
 
44,341
    
Bauer
    
1,988,339
    
 
133,181
    
Bilfinger Berger
    
8,898,704
    
 
171,567
    
Hochtief
    
14,439,936
    
     
25,326,979
    
   
CONSTRUCTION
MATERIALS – 4.5%
  
 
222,500
    
HeidelbergCement
    
12,430,298
    
   
ELECTRICAL EQUIPMENT – 3.4%
  
 
50,000
    
Q-Cells*†
    
497,794
    
 
60,686
    
SGL Carbon*†
    
1,777,248
    
 
271,957
    
Solarworld†
    
4,107,338
    
 
164,800
    
Tognum
    
3,103,115
    
     
9,485,495
    
   
HEALTH CARE PROVIDERS &
SERVICES – 4.6%
  
 
130,000
    
Celesio
    
4,162,393
    
 
329,946
    
Rhoen Klinikum
    
8,457,725
    
     
12,620,118
    
 

 
Shares
  
Description
  
Value(a)
  
   
HOUSEHOLD DURABLES – 0.6%
  
 
118,886
    
Loewe
  
$
1,675,714
    
   
INDUSTRIAL
CONGLOMERATES – 4.5%
  
 
172,583
    
Rheinmetall
    
12,380,014
    
   
INTERNET SOFTWARE &
SERVICES – 3.3%
  
 
600,966
    
United Internet*
    
9,129,167
    
   
LIFE SCIENCES TOOLS &
SERVICES – 1.2%
  
 
108,287
    
Gerresheimer
    
3,391,008
    
   
MACHINERY – 7.3%
  
 
50,000
    
Demag Cranes*
    
1,755,467
    
 
573,046
    
GEA Group
    
13,301,734
    
 
100,000
    
Gildemeister
    
1,347,695
    
 
298,963
    
MAX Automation
    
1,132,340
    
 
32,714
    
Pfeiffer Vacuum Technology
    
2,500,251
    
     
20,037,487
    
   
METALS & MINING – 2.4%
  
 
130,000
    
Aurubis†
    
6,709,595
    
   
MORTGAGE BANKS – 1.7%
  
 
210,000
    
Aareal Bank*†
    
4,601,885
    
   
PHARMACEUTICALS – 3.6%
  
 
247,563
    
Stada Arzneimittel
    
9,768,405
    
   
REAL ESTATE MANAGEMENT & DEVELOPMENT – 2.2%
  
 
179,592
    
Deutsche Euroshop†
    
5,906,943
    
   
SEMICONDUCTORS &
SEMICONDUCTOR
EQUIPMENT – 1.0%
  
 
40,000
    
Aixtron
    
1,440,625
    
 
130,766
    
Kontron
    
1,280,840
    
     
2,721,465
    
   
SOFTWARE – 5.7%
  
 
200,000
    
PSI*
    
2,661,031
    
 
110,000
    
Software
    
13,119,432
    
     
15,780,463
    
   
SPECIALTY RETAIL – 3.8%
  
 
30,000
    
Douglas Holdings
    
1,388,073
    
 
50,000
    
Fielmann
    
4,031,722
    
 
263,465
    
Praktiker Bau- und
Heimwerkermaerkte
    
2,824,027
    
 
120,000
    
Tom Tailor Holding*
    
2,063,950
    
     
10,307,772
    
 

 
 
6
 
 

 
 
THE NEW GERMANY FUND, INC.
 
 
SCHEDULE OF INVESTMENTS — MARCH 31, 2010 (unaudited) (continued)
 
Shares
  
Description
  
Value(a)
  
INVESTMENTS IN GERMAN
SECURITIES – 92.8% (continued)
      
   
TEXTILES, APPAREL &
LUXURY GOODS – 0.7%
  
 
5,647
    
Puma
  
$
1,791,656
    
   
TRADING COMPANIES &
DISTRIBUTORS – 2.2%
  
 
200,000
    
Kloeckner & Co.*
    
5,920,768
    
   
TRANSPORTATION
INFRASTRUCTURE – 2.3%
  
 
120,000
    
Fraport
    
6,328,201
    
   
WIRELESS TELECOMMUNICATION
SERVICES – 1.8%
  
 
390,646
    
Freenet*
    
4,835,106
    
       
Total Common Stocks
(cost $180,163,410)
    
249,361,080
    
   
PREFERRED STOCKS – 2.0%
  
   
HEALTH CARE EQUIPMENT &
SUPPLIES – 0.6%
  
 
62,632
    
Sartorius
    
1,664,793
    
   
TELEVISION – 1.4%
  
 
225,000
    
ProSiebenSat.1 Media
    
3,804,469
    
       
Total Preferred Stocks
(cost $2,545,737)
    
5,469,262
    
       
Total Investments in German
Securities
(cost $182,709,147)
    
254,830,342
    
INVESTMENTS IN DUTCH
COMMON STOCKS – 6.8%
      
   
AEROSPACE & DEFENSE – 3.8%
  
 
519,645
    
EADS
    
10,470,050
    
   
LIFE SCIENCES TOOLS &
SERVICES – 3.0%
  
 
355,887
    
QIAGEN*†
    
8,208,012
    
       
Total Investments in
Dutch Common Stocks
(cost $11,363,007)
    
18,678,062
    
       
Total Investments in
Common and Preferred
Stocks – 99.6%
(cost $194,072,154)
    
273,508,404
    
 

 
Shares
  
Description
  
Value(a)
  
SECURITIES LENDING
COLLATERAL – 8.6%
  
 
23,735,792
    
Daily Assets Fund
Institutional, 0.22%
(cost $23,735,792)(b)(c)
  
$
23,735,792
    
CASH EQUIVALENTS – 0.1%
  
 
263,517
    
Central Cash
Management Fund, 0.16%
(cost $263,517)(c)
    
263,517
    
   
Total Investments – 108.3%
(cost $218,071,463)**
    
297,507,713
    
   
Other Assets and Liabilities,
Net – (8.3%)
    
(22,785,361
)
  
   
NET ASSETS–100.0%
  
$
274,722,352
    
 
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 $222,124,777. At March 31, 2010, net unrealized appreciation for all securities based on tax cost was $75,382,936. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $87,614,004 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $12,231,068
 
 
† All or a portion of these securities were on loan. The value of all securities loaned at March 31, 2010 amounted to $22,754,610 which is 8.3% of the net assets.
 
 
(a) Value stated in US 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.
 
 

 
 
7
 
 

 
 
THE NEW GERMANY FUND, INC.
 
 
SCHEDULE OF INVESTMENTS — MARCH 31, 2010 (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 unobservable 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, 2010 in valuing the Fund's investments.
 
Category
  
Level 1
  
Level 2
  
Level 3
  
Total
  
Common Stocks and/or Other Equity Investments(d)
  
Germany
  
$
254,830,342
    
$
0
    
$
0
    
$
254,830,342
    
Netherlands
    
18,678,062
      
0
      
0
      
18,678,062
    
Short-Term Investments
    
23,999,309
      
0
      
0
      
23,999,309
    
Total
  
$
297,507,713
    
$
0
    
$
0
    
$
297,507,713
    
 
(d) See Schedule of investments for additional detailed categorizations
 
 

 
 
8
 
 

 
 
[THIS PAGE INTENTIONALLY LEFT BLANK.]
 
 

 
 
[THIS PAGE INTENTIONALLY LEFT BLANK.]
 
 


 

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/Michael G. Clark
Michael G. Clark
President
   
Date:
May 21, 2010


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.

Registrant:
The New Germany Fund, Inc.
   
By:
/s/Michael G. Clark
Michael G. Clark
President
   
Date:
May 21, 2010
   
   
   
By:
/s/Paul Schubert
Paul Schubert
Chief Financial Officer and Treasurer
   
Date:
May 21, 2010