Edgar Filing: NEW GERMANY FUND INC

nqa033111ngf.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

100 Plaza One

Jersey City, NJ 07311

(Name and address of agent for service)

Registrant's telephone number, including area code: (201) 593-6408

Date of fiscal year end: 12/31

Date of reporting period: 3/31/11

ITEM 1.

SCHEDULE OF INVESTMENTS

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2011 (unaudited)

Shares		Description	Value(a)
INVESTMENTS IN GERMAN SECURITIES – 91.7%
		COMMON STOCKS – 87.7%
		AEROSPACE & DEFENSE – 3.4%
	174,084	MTU Aero Engines Holding	$	11,820,156
		AUTO COMPONENTS – 6.1%
	165,000	Continental*		14,907,376
	188,344	ElringKlinger		5,947,874
				20,855,250
		CHEMICALS – 13.1%
	247,760	Lanxess		18,555,941
	360,000	Symrise		10,569,280
	71,364	Wacker Chemie		16,070,837
				45,196,058
		COMPUTERS & PERIPHERALS – 3.0%
	127,727	Wincor Nixdorf		10,354,505
		CONSTRUCTION & ENGINEERING – 8.1%
	108,181	Bilfinger Berger		9,402,416
	171,567	Hochtief		18,478,126
				27,880,542
		ELECTRICAL EQUIPMENT – 2.5%
	60,686	SGL Carbon*†		2,974,358
	160,000	Tognum		5,766,816
				8,741,174
		HEALTH CARE PROVIDERS & SERVICES – 1.4%
	190,000	Celesio		4,672,341
		HOTELS, RESTAURANTS & LEISURE – 0.3%
	100,000	TUI*		1,196,643
		HOUSEHOLD DURABLES – 0.3%
	118,886	Loewe		1,088,110
		INDUSTRIAL CONGLOMERATES – 4.2%
	172,583	Rheinmetall		14,319,027
		INSURANCE – 2.7%
	170,000	Hannover Rueckversicherung		9,293,386
		INTERNET SOFTWARE & SERVICES – 2.6%
	500,966	United Internet		9,028,059

Shares		Description	Value(a)
		MACHINERY – 7.7%
	473,046	GEA Group	$	15,599,903
	200,000	Gildemeister		4,526,610
	298,963	MAX Automation		1,696,914
	32,714	Pfeiffer Vacuum Technology		4,594,767
				26,418,194
		MEDIA – 1.4%
	30,000	Axel Springer		4,855,108
		METALS & MINING – 4.7%
	160,000	Aurubis		8,551,462
	95,000	Salzgitter		7,508,638
				16,060,100
		PROFESSIONAL SERVICES – 1.0%
	50,000	Bertrandt		3,370,125
		REAL ESTATE MANAGEMENT & DEVELOPMENT – 2.2%
	202,041	Deutsche Euroshop		7,726,462
		SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 4.5%
	280,000	Aixtron†		12,275,202
	201,957	Solarworld†		3,295,635
				15,570,837
		SOFTWARE – 6.7%
	180,000	PSI†		5,008,786
	110,000	Software		18,246,921
				23,255,707
		SPECIALTY RETAIL – 2.9%
	52,000	Douglas Holdings		2,841,576
	50,000	Fielmann†		4,728,817
	120,000	Tom Tailor Holding*		2,332,836
				9,903,229
		TEXTILES, APPAREL & LUXURY GOODS – 0.5%
	5,647	Puma		1,658,310
		THRIFTS & MORTGAGE FINANCE – 1.5%
	160,000	Aareal Bank*		5,137,915
		TRADING COMPANIES & DISTRIBUTORS – 4.3%
	55,000	Brenntag*		6,115,606
	260,000	Kloeckner & Co.*		8,677,469
				14,793,075

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2011 (unaudited) (continued)

Shares		Description	Value(a)
INVESTMENTS IN GERMAN SECURITIES – 91.7% (continued)
		TRANSPORTATION INFRASTRUCTURE – 2.6%
	120,000	Fraport	$	8,805,179
		Total Common Stocks (cost $196,058,770 )		301,999,492
		PREFERRED STOCKS – 4.0%
		HEALTH CARE EQUIPMENT & SUPPLIES – 0.8%
	62,632	Sartorius (cost $691,433)		2,728,456
		MACHINERY – 1.1%
	95,000	Jungheinrich (cost $3,195,087)		3,821,722
		MEDIA – 2.1%
	245,000	ProSiebenSat.1 Media (cost $5,665,065)		7,180,814
		Total Preferred Stocks (cost $9,551,585)		13,730,992
		RIGHTS – 0.0%
		MACHINERY – 0.0%
	200,000	Gildemeister (cost $0)*		133,670
		Total Investments in German Securities (cost $205,610,355)		315,864,154
INVESTMENTS IN DUTCH COMMON STOCKS – 8.4%
		AEROSPACE & DEFENSE – 5.8%
	689,645	EADS*		20,100,572
		LIFE SCIENCES TOOLS & SERVICES – 2.6%
	445,887	QIAGEN*		8,918,099
		Total Investments in Dutch Common Stocks (cost $24,025,611)		29,018,671
		Total Investments in Common and Preferred Stocks – 100.1% (cost $229,635,966)		344,882,825

Shares		Description	Value(a)
SECURITIES LENDING COLLATERAL – 5.9%
	20,408,329	Daily Assets Fund Institutional, 0.22% (cost $20,408,329)(b)(c)	$	20,408,329
CASH EQUIVALENTS – 0.0%
	16,275	Central Cash Management Fund, 0.17% (cost $16,275)(c)		16,275
		Total Investments – 106.0% (cost $250,060,570)**		365,307,429
		Other Assets and Liabilities, Net – (6.0%)		(20,812,001	)
		NET ASSETS – 100.0%	$	344,495,428

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 $251,654,213. At March 31, 2011, net unrealized appreciation for all securities based on tax cost was $113,653,216. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $117,174,264 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $3,521,048.

† All or a portion of these securities were on loan. The value of all securities loaned at March 31, 2011 amounted to $19,701,611, which is 5.7% 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.

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, 2011 (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, 2011 in valuing the Fund's investments.

Category	Level 1		Level 2		Level 3		Total
Common Stocks and/or Other Equity Investments(d)
Germany	$	315,864,154	$	—	$	—	$	315,864,154
Netherlands		29,018,671		—		—		29,018,671
Short-Term Instruments(d)		20,424,604		—		—		20,424,604
Total	$	365,307,429	$	—	$	—	$	365,307,429

There have been no significant transfers between Level 1 and Level 2 fair value measurements during the period ended March 31, 2011.

(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/Michael G. Clark Michael G. Clark President

Date:	May 18. 2011

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/Michael G. Clark Michael G. Clark President

Date:	May 18. 2011



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

Date:	May 18. 2011