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: 9/30/2016
| ITEM 1. | SCHEDULE OF INVESTMENTS |
The New Germany Fund, Inc.
Schedule of Investments as of September 30, 2016 (Unaudited)
| Shares | Value ($) | ||
| Germany 77.3% | |||
| Common Stocks 73.8% | |||
| Aerospace & Defense 3.5% | |||
| MTU Aero Engines AG | 90,252 | 9,132,526 | |
| Chemicals 12.7% | |||
| Covestro AG 144A | 182,781 | 10,809,729 | |
| Evonik Industries AG | 160,583 | 5,430,556 | |
| K+S AG (Registered)† | 177,074 | 3,359,744 | |
| Symrise AG | 165,890 | 12,159,563 | |
| Wacker Chemie AG | 15,994 | 1,347,934 | |
| 33,107,526 | |||
| Commercial Services & Supplies 0.5% | |||
| Bilfinger SE* | 36,695 | 1,211,048 | |
| Communications Equipment 0.2% | |||
| ADVA Optical Networking SE* | 43,828 | 441,276 | |
| Diversified Financial Services 0.5% | |||
| GRENKE AG | 6,074 | 1,168,842 | |
| Diversified Telecommunication Services 1.1% | |||
| Telefonica Deutschland Holding AG | 679,099 | 2,732,674 | |
| Electrical Equipment 3.9% | |||
| OSRAM Licht AG | 172,937 | 10,155,649 | |
| Electronic Equipment, Instruments & Components 0.9% | |||
| Jenoptik AG | 122,743 | 2,244,061 | |
| Food & Staples Retailing 3.3% | |||
| METRO AG | 290,878 | 8,658,511 | |
| Food Products 0.8% | |||
| Suedzucker AG | 78,382 | 2,178,606 | |
| Health Care Equipment & Supplies 0.2% | |||
| STRATEC Biomedical AG | 10,473 | 603,724 | |
| Health Care Technology 0.7% | |||
| CompuGroup Medical SE | 41,161 | 1,897,976 | |
| Household Durables 0.4% | |||
| HELMA Eigenheimbau AG† | 14,378 | 963,900 | |
| Industrial Conglomerates 1.5% | |||
| Rheinmetall AG | 54,506 | 3,794,950 | |
| Insurance 1.1% | |||
| Hannover Rueck SE | 27,620 | 2,959,029 | |
| Internet & Catalog Retail 4.3% | |||
| Zalando SE 144A* | 267,124 | 11,151,213 | |
| Internet Software & Services 4.9% | |||
| Scout24 AG 144A* | 75,833 | 2,556,406 | |
| United Internet AG (Registered) | 218,101 | 9,652,480 | |
| XING AG | 3,163 | 664,825 | |
| 12,873,711 | |||
| IT Services 2.5% | |||
| Wirecard AG | 125,655 | 6,530,432 | |
| Life Sciences Tools & Services 1.3% | |||
| Evotec AG* | 125,975 | 711,047 | |
| Gerresheimer AG | 17,149 | 1,457,415 | |
| MorphoSys AG* | 26,540 | 1,110,161 | |
| 3,278,623 | |||
| Shares | Value ($) | ||
| Machinery 8.6% | |||
| GEA Group AG | 197,888 | 10,987,141 | |
| KION Group AG | 108,837 | 7,046,934 | |
| KUKA AG* | 30,784 | 3,723,827 | |
| Pfeiffer Vacuum Technology AG | 7,854 | 746,640 | |
| 22,504,542 | |||
| Media 1.2% | |||
| CTS Eventim AG & Co. KGaA | 53,964 | 1,921,661 | |
| Stroeer SE & Co. KGaA† | 26,971 | 1,172,287 | |
| 3,093,948 | |||
| Metals & Mining 2.5% | |||
| Aurubis AG | 78,295 | 4,388,007 | |
| Salzgitter AG | 66,279 | 2,172,142 | |
| 6,560,149 | |||
| Pharmaceuticals 1.7% | |||
| STADA Arzneimittel AG | 78,737 | 4,376,061 | |
| Real Estate Management & Development 9.9% | |||
| ADO Properties SA 144A | 92,077 | 3,683,423 | |
| Deutsche Wohnen AG | 239,914 | 8,722,628 | |
| LEG Immobilien AG* | 94,162 | 9,013,940 | |
| TLG Immobilien AG | 170,632 | 3,852,999 | |
| VIB Vermoegen AG | 27,403 | 612,160 | |
| 25,885,150 | |||
| Semiconductors & Semiconductor Equipment 0.4% | |||
| AIXTRON SE*† | 118,504 | 723,075 | |
| Siltronic AG* | 15,042 | 397,467 | |
| 1,120,542 | |||
| Software 1.4% | |||
| Software AG | 88,243 | 3,739,769 | |
| Textiles, Apparel & Luxury Goods 0.5% | |||
| HUGO BOSS AG | 21,603 | 1,194,951 | |
| Trading Companies & Distributors 3.3% | |||
| Brenntag AG | 157,582 | 8,606,725 | |
| Preferred Stocks 3.5% | |||
| Auto Components 1.1% | |||
| Schaeffler AG (Cost $ 2,622,395) | 177,797 | 2,813,050 | |
| Health Care Equipment & Supplies 1.2% | |||
| Sartorius AG (Cost $ 2,014,562) | 38,939 | 3,241,426 | |
| Machinery 1.2% | |||
| Jungheinrich AG (Cost $ 2,157,430) | 92,453 | 3,127,592 | |
| Total Germany (Cost $152,681,169) | 201,348,182 | ||
| Netherlands 20.1% | |||
| Common Stocks | |||
| Aerospace & Defense 10.2% | |||
| Airbus Group SE | 439,591 | 26,595,259 | |
| Household Durables 5.0% | |||
| Steinhoff International Holdings NV | 2,277,006 | 13,072,254 | |
| Life Sciences Tools & Services 4.9% | |||
| QIAGEN NV* | 464,706 | 12,796,269 | |
| Total Netherlands (Cost $35,744,354) | 52,463,782 | ||
| Luxembourg 1.0% | |||
| Common Stocks | |||
| Machinery 0.5% | |||
| Stabilus SA* | 24,784 | 1,395,274 | |
| Media 0.5% | |||
| RTL Group SA | 15,468 | 1,285,006 | |
| Total Luxembourg (Cost $2,457,656) | 2,680,280 | ||
| Shares | Value ($) | ||
| United Kingdom 1.0% | |||
| Common Stocks | |||
| Semiconductors & Semiconductor Equipment 1.0% | |||
| Dialog Semiconductor PLC* (Cost $1,223,329) | 65,165 | 2,512,747 | |
| Securities Lending Collateral 2.5% | |||
| Government & Agency Securities Portfolio “Deutsche Government Cash Institutional Shares”, 0.63% (Cost $6,421,419) (a) (b) | 6,421,419 | 6,421,419 | |
| Cash Equivalents 0.5% | |||
| Deutsche Central Cash Management Government Fund, 0.42% (Cost $1,200,964) (b) | 1,200,964 | 1,200,964 | |
| % of Net Assets | Value ($) | ||
| Total Investments Portfolio (Cost $199,728,891)** | 102.4 | 266,627,374 | |
| Other Assets and Liabilities, Net | (2.4) | (6,154,649) | |
| Net Assets | 100.0 | 260,472,725 | |
| * | Non-income producing security. | |
| ** | The cost for federal income tax purposes was $200,781,746. At September 30, 2016, net unrealized appreciation for all securities based on tax cost was $65,845,628. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $79,258,672 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $13,413,044. | |
| † | All or a portion of these securities were on loan. The value of all securities loaned at September 30, 2016 amounted to $6,152,515, which is 2.4% of net assets. | |
| (a) | Represents collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. | |
| (b) | Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end. | |
| 144A: | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
|
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. Securities are listed in the country of domicile. For purposes of the Fund's investment objective policy to invest in German companies, non-Germany domiciled securities may qualify as German companies as defined in the Fund's Statement of Investment Objectives, Policies and Investment Restrictions. |
| 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 level assigned to the securities valuations may not be an indication of the risk associated with investing in those securities. | ||||||||
| The following is a summary of the inputs used as of September 30, 2016 in valuing the Fund’s investments. | ||||||||
| Assets | Level 1 | Level 2 | Level 3 | Total | ||||
| Common Stocks and/or Other Equity Investments (c) | ||||||||
| Germany | $ | 201,348,182 | $ | — | $ | — | $ | 201,348,182 |
| Netherlands | 52,463,782 | — | — | 52,463,782 | ||||
| Luxembourg | 2,680,280 | — | — | 2,680,280 | ||||
| United Kingdom | 2,512,747 | — | — | 2,512,747 | ||||
| Short-Term Instruments (c) | 7,622,383 | — | — | 7,622,383 | ||||
| Total | $ | 266,627,374 | $ | — | $ | — | $ | 266,627,374 |
| There have been no transfers between fair value measurement levels during the period ended September 30, 2016. |
| (c) 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/Brian E. Binder Brian E. Binder President |
| Date: | November 18, 2016 |
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/Brian E. Binder Brian E. Binder President |
| Date: | November 18, 2016 |
| By: |
/s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer |
| Date: | November 18, 2016 |