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 10154-0004
(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) 250-3220
Date of fiscal year end: 12/31
Date of reporting period: 3/31/2018
| ITEM 1. | SCHEDULE OF INVESTMENTS |
The New Germany Fund, Inc.
Schedule of Investments as of March 31, 2018 (Unaudited)
| Shares | Value ($) | |
| Germany 84.8% | ||
| Common Stocks 79.7% | ||
| Aerospace & Defense 4.2% | ||
| MTU Aero Engines AG | 85,500 | 14,381,893 |
| Auto Components 1.6% | ||
| Hella GmbH & Co. KGaA | 33,000 | 2,166,801 |
| Leoni AG | 49,623 | 3,167,974 |
| 5,334,775 | ||
| Chemicals 9.0% | ||
| Covestro AG 144A | 69,826 | 6,856,624 |
| Evonik Industries AG | 137,973 | 4,858,822 |
| K+S AG (Registered)† | 186,845 | 5,385,214 |
| LANXESS AG | 67,981 | 5,199,263 |
| Symrise AG | 90,405 | 7,265,547 |
| Wacker Chemie AG | 8,315 | 1,363,387 |
| 30,928,857 | ||
| Construction & Engineering 0.3% | ||
| HOCHTIEF AG | 5,000 | 932,652 |
| Electrical Equipment 6.4% | ||
| OSRAM Licht AG | 215,840 | 15,860,117 |
| Varta AG* | 255,613 | 5,971,733 |
| 21,831,850 | ||
| Electronic Equipment, Instruments & Components 1.0% | ||
| Jenoptik AG | 96,297 | 3,400,643 |
| Food & Staples Retailing 1.6% | ||
| METRO AG | 314,370 | 5,562,445 |
| Health Care Technology 1.7% | ||
| CompuGroup Medical SE | 108,340 | 5,853,461 |
| Independent Power & Renewable Electricity Producers 1.8% | ||
| Uniper SE | 207,060 | 6,301,374 |
| Industrial Conglomerates 0.4% | ||
| Rheinmetall AG | 10,000 | 1,418,344 |
| Insurance 2.7% | ||
| Talanx AG | 212,438 | 9,231,294 |
| Internet & Direct Marketing Retail 4.4% | ||
| Zalando SE 144A* | 278,100 | 15,141,624 |
| Internet Software & Services 6.9% | ||
| Delivery Hero AG 144A* | 77,005 | 3,721,134 |
| Scout24 AG 144A | 153,859 | 7,158,762 |
| United Internet AG (Registered) | 176,379 | 11,082,344 |
| XING SE | 6,192 | 1,800,636 |
| 23,762,876 | ||
| IT Services 4.0% | ||
| Wirecard AG | 115,826 | 13,660,893 |
| Life Sciences Tools & Services 1.4% | ||
| Evotec AG*† | 122,525 | 2,395,442 |
| MorphoSys AG* | 24,464 | 2,496,718 |
| 4,892,160 | ||
| Machinery 2.9% | ||
| KION Group AG | 104,537 | 9,735,521 |
| Media 0.8% | ||
| CTS Eventim AG & Co. KGaA | 18,143 | 849,066 |
| Stroeer SE & Co. KGaA | 24,861 | 1,734,796 |
| 2,583,862 | ||
| Shares | Value ($) | |
| Metals & Mining 2.0% | ||
| Aurubis AG | 56,807 | 4,769,350 |
| Salzgitter AG | 39,539 | 2,019,557 |
| 6,788,907 | ||
| Multi-Utilities 1.8% | ||
| Innogy SE 144A | 131,077 | 6,200,297 |
| Pharmaceuticals 0.5% | ||
| Dermapharm Holding SE* | 56,349 | 1,666,346 |
| Real Estate Management & Development 5.8% | ||
| Deutsche Wohnen SE | 155,312 | 7,237,825 |
| Instone Real Estate Group BV 144A* | 136,081 | 3,095,516 |
| LEG Immobilien AG | 71,853 | 8,069,930 |
| TLG Immobilien AG | 56,975 | 1,562,259 |
| 19,965,530 | ||
| Semiconductors & Semiconductor Equipment 3.5% | ||
| Siltronic AG* | 70,377 | 12,006,809 |
| Software 1.8% | ||
| Software AG | 120,634 | 6,307,058 |
| Specialty Retail 1.5% | ||
| CECONOMY AG | 433,926 | 4,988,743 |
| Textiles, Apparel & Luxury Goods 2.7% | ||
| HUGO BOSS AG | 20,918 | 1,820,002 |
| Puma SE | 15,477 | 7,545,601 |
| 9,365,603 | ||
| Trading Companies & Distributors 4.1% | ||
| Brenntag AG | 239,002 | 14,194,252 |
| Transportation Infrastructure 3.1% | ||
| Fraport AG Frankfurt Airport Services Worldwide | 109,007 | 10,736,204 |
| Wireless Telecommunication Services 1.8% | ||
| 1&1 Drillisch AG | 93,137 | 6,270,039 |
| Preferred Stocks 5.1% | ||
| Health Care Equipment & Supplies 3.0% | ||
| Sartorius AG (Cost $4,937,802) | 72,580 | 10,129,236 |
| Machinery 2.1% | ||
| Jungheinrich AG (Cost $4,675,150) | 163,233 | 7,217,578 |
| Total Germany (Cost $191,411,571) | 290,791,126 | |
| Netherlands 12.6% | ||
| Common Stocks | ||
| Aerospace & Defense 10.5% | ||
| Airbus SE | 312,426 | 36,034,115 |
| Life Sciences Tools & Services 2.1% | ||
| QIAGEN NV* | 219,411 | 7,081,929 |
| Total Netherlands (Cost $10,937,534) | 43,116,044 | |
| Italy 1.1% | ||
| Common Stocks | ||
| Health Care Equipment & Supplies 1.1% | ||
| DiaSorin SpA (Cost $3,847,053) | 41,776 | 3,754,984 |
| France 0.5% | ||
| Common Stocks | ||
| Health Care Equipment & Supplies 0.5% | ||
| Sartorius Stedim Biotech (Cost $1,491,332) | 18,362 | 1,658,348 |
| United Kingdom 0.5% | ||
| Common Stocks | ||
| Semiconductors & Semiconductor Equipment 0.5% | ||
| Dialog Semiconductor PLC* (Cost $2,150,177) | 69,665 | 1,652,811 |
| Shares | Value ($) | |
| Securities Lending Collateral 1.9% | ||
| Deutsche Government & Agency Securities Portfolio "Deutsche Government Cash Institutional Shares", 1.56% (Cost $6,620,705) (a) (b) | 6,620,705 | 6,620,705 |
| Cash Equivalents 0.7% | ||
| Deutsche Central Cash Management Government Fund, 1.64% (Cost $2,541,102) (b) | 2,541,102 | 2,541,102 |
| % of Net Assets |
Value ($) | |
| Total Investment Portfolio (Cost $218,999,474) | 102.1 | 350,135,120 |
| Other Assets and Liabilities, Net | (2.1) | (7,115,838) |
| Net Assets | 100.0 | 343,019,282 |
For information on the Fund’s policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual financial statements.
A summary of the Fund’s transactions with affiliated Underlying Deutsche Funds during the period ended March 31, 2018 are as follows:
| Value ($) at 12/31/2017 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/ (Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) |
Capital Gain Distributions ($) |
Number of shares at 3/31/2018 |
Value ($) at 3/31/2018 |
| Securities Lending Collateral 1.9% | ||||||||
| Deutsche Government & Agency Securities Portfolio “Deutsche Government Cash Institutional Shares”, 1.56% (a) (b) | ||||||||
| 2,096,047 | 18,971,881 | 14,447,223 | - | - | 49,121 | - | 6,620,705 | 6,620,705 |
| Cash Equivalents 0.7% | ||||||||
| Deutsche Central Cash Management Government Fund, 1.64% (b) | ||||||||
| 3,180,295 | 33,520,861 | 34,160,054 | - | - | 10,667 | - | 2,541,102 | 2,541,102 |
| 5,276,342 | 52,492,742 | 48,607,277 | - | - | 59,788 | - | 9,161,807 | 9,161,807 |
| * | Non-income producing security. | ||
| † | All or a portion of these securities were on loan. The value of all securities loaned at March 31, 2018 amounted to $6,395,000, which is 1.9% 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
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 March 31, 2018 in valuing the Fund’s investments. | ||||
| Assets | Level 1 | Level 2 | Level 3 | Total | ||||
| Common Stocks and/or Other Equity Investments (c) | ||||||||
| Germany | $ | 290,791,126 | $ | — | $ | — | $ | 290,791,126 |
| Netherlands | 43,116,044 | — | — | 43,116,044 | ||||
| Italy | 3,754,984 | — | — | 3,754,984 | ||||
| France | 1,658,348 | — | — | 1,658,348 | ||||
| United Kingdom | 1,652,811 | — | — | 1,652,811 | ||||
| Short-Term Instruments (c) | 9,161,807 | — | — | 9,161,807 | ||||
| Total | $ | 350,135,120 | $ | — | $ | — | $ | 350,135,120 |
| There have been no transfers between fair value measurement levels during the period ended March 31, 2018. |
| (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/Hepsen Uzcan Hepsen Uzcan President |
| Date: | May 23, 2018 |
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/Hepsen Uzcan Hepsen Uzcan President |
| Date: | May 23, 2018 |
| By: |
/s/Paul Shubert Paul Shubert Chief Financial Officer and Treasurer |
| Date: | May 23, 2018 |