Edgar Filing: NEW GERMANY FUND INC

nq093012ngf.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: 9/30/2012

ITEM 1.

SCHEDULE OF INVESTMENTS

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 2012 (unaudited)

Shares			Description			Value(a)
INVESTMENTS IN GERMANY – 88.1%
			COMMON STOCKS – 81.1%
			AEROSPACE & DEFENSE – 3.0%
	101,650		MTU Aero Engines Holding			$		8,126,261
			AUTO COMPONENTS – 3.0%
	50,950		Continental					4,993,918
	113,950		ElringKlinger					3,017,957
								8,011,875
			CHEMICALS – 4.9%
	60,260		Lanxess					5,001,878
	242,150		Symrise					8,207,433
								13,209,311
			COMPUTERS & PERIPHERALS – 1.8%
	121,327		Wincor Nixdorf					4,748,995
			CONSTRUCTION & ENGINEERING – 4.7%
	114,131		Bilfinger Berger					10,100,301
	56,567		Hochtief*					2,652,908
								12,753,209
			ELECTRICAL EQUIPMENT – 0.4%
	24,436		SGL Carbon†					980,365
			FOOD & STAPLES RETAILING – 2.9%
	260,000		Metro					7,784,044
			FOOD PRODUCTS – 3.8%
	9,000		KW	S	Saat			2,401,008
	218,400		Suedzucker					7,739,564
								10,140,572
			HEALTH CARE PROVIDERS & SERVICES – 0.9%
	76,000		Celesio					1,356,403
	50,000		Rhoen Klinikum†					985,306
								2,341,709
			HOUSEHOLD DURABLES – 0.3%
	118,886		Loewe*					767,674
			INDUSTRIAL CONGLOMERATES – 1.4%
	78,433		Rheinmetall					3,662,248
			INSURANCE – 5.0%
	208,950		Hannover Rueckversicherung					13,364,707

Shares		Description					Value(a)
		INTERNET SOFTWARE & SERVICES – 2.9%
	376,016	United Internet					$		7,675,833
		IT SERVICES – 0.9%
	66,500	Bechtle							2,566,168
		LIFE SCIENCES TOOLS & SERVICES – 2.4%
	123,450	Gerresheimer							6,458,141
		MACHINERY – 8.1%
	449,196	GEA Group							13,604,320
	102,450	Gildemeister							1,819,902
	30,000	MAN							2,749,466
	283,913	MAX Automation							1,332,970
	17,714	Pfeiffer Vacuum Technology							1,893,705
	217,850	Singulus Technologies*†							408,281
									21,808,644
		MEDIA – 6.6%
	123,450	Axel Springer							5,354,525
	175,000	Kabel Deutschland Holding*							12,495,440
									17,849,965
		METALS & MINING – 4.0%
	132,950	Aurubis							7,755,466
	76,000	Salzgitter							2,939,118
									10,694,584
		PROFESSIONAL SERVICES – 0.9%
	33,250	Bertrandt							2,459,245
		REAL ESTATE MANAGEMENT & DEVELOPMENT – 4.5%
	191,891	Deutsche Euroshop							7,158,052
	452,568	TAG Immobilien†							4,821,851
									11,979,903
		SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 2.8%
	199,450	Aixtron†							2,661,733
	183,450	Dialog Semiconductor*							3,577,331
	123,450	Suss Microtec*							1,184,760
									7,423,824
		SOFTWARE – 3.0%
	151,950	PSI							3,201,525
	132,950	Software							4,791,800
									7,993,325

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 2012 (unaudited) (continued)

Shares		Description	Value(a)
INVESTMENTS IN GERMANY – 88.1% (continued)
		SPECIALTY RETAIL – 2.5%
	47,500	Fielmann	$	4,410,755
	113,950	Tom Tailor Holding		2,430,928
				6,841,683
		TEXTILES, APPAREL & LUXURY GOODS – 2.9%
	55,000	Gerry Weber International		2,275,207
	62,500	Hugo Boss		5,506,972
				7,782,179
		THRIFTS & MORTGAGE FINANCE – 2.1%
	277,900	Aareal Bank*		5,699,744
		TRADING COMPANIES & DISTRIBUTORS – 2.5%
	52,250	Brenntag		6,694,034
		TRANSPORTATION INFRASTRUCTURE – 2.9%
	132,950	Fraport		7,696,466
		Total Common Stocks (cost $171,912,252)		217,514,708
		PREFERRED STOCKS – 7.0%
		HEALTH CARE EQUIPMENT & SUPPLIES – 3.3%
	40,500	Draegerwerk (cost $4,437,948)		4,018,099
	59,482	Sartorius (cost $655,949)		4,736,074
				8,754,173
		MACHINERY – 1.1%
	90,250	Jungheinrich (cost $3,012,077)		2,993,344
		MEDIA – 2.6%
	280,150	ProSiebenSat.1 Media (cost $6,536,771)		7,064,798
		Total Preferred Stocks (cost $14,642,745)		18,812,315
		Total Investments in Germany (cost $186,554,997)		236,327,023
INVESTMENTS IN NETHERLANDS – 9.7%
		AEROSPACE & DEFENSE – 8.7%
	733,345	EADS		23,266,536

Shares		Description	Value(a)
		LIFE SCIENCES TOOLS & SERVICES – 1.0%
	152,787	QIAGEN*	$	2,814,308
		Total Investments in Netherlands (cost $20,015,555)		26,080,844
		Total Investments in Common and Preferred Stocks – 97.8% (cost $206,570,552)		262,407,867
SECURITIES LENDING COLLATERAL – 3.5%
	9,472,187	Daily Assets Fund Institutional, 0.23% (cost $9,472,187)(b)(c)		9,472,187
CASH EQUIVALENTS – 0.6%
	1,588,032	Central Cash Management Fund, 0.15% (cost $1,588,032)(c)		1,588,032
		Total Investments – 101.9% (cost $217,630,771)**		273,468,086
		Other Assets and Liabilities, Net – (1.9%)		(5,081,191	)
		NET ASSETS – 100.0%	$	268,386,895

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 $217,978,643. At September 30, 2012, net unrealized appreciation for all securities based on tax cost was $55,489,443. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $73,469,371 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $17,979,928.

† All or a portion of these securities were on loan. The value of all securities loaned at September 30, 2012 amounted to $9,005,778, 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, 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 September 30, 2012 in valuing the Fund's investments.

Category	Level 1		Level 2		Level 3		Total
Common Stocks and/or Other Equity Investments(1)
Germany	$	236,327,023	$	—	$	—	$	236,327,023
Netherlands		26,080,844		—		—		26,080,844
Short-Term Instruments(1)		11,060,219		—		—		11,060,219
Total	$	273,468,086	$	—	$	—	$	273,468,086

There have been no transfers between fair value measurement levels during the period ended September 30, 2012.

(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/W. Douglas Beck W. Douglas Beck President

Date:	November 20, 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:	November 20, 2012



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

Date:	November 20, 2012