Edgar Filing: NEW GERMANY FUND INC

nq093010ngf.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

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: 9/30/10

ITEM 1. SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2010 (unaudited)

THE NEW GERMANY FUND, INC.

Shares		Description	Value(a)
INVESTMENTS IN GERMAN SECURITIES – 89.2%
		COMMON STOCKS – 86.3%
		AEROSPACE & DEFENSE – 2.6%
	129,084	MTU Aero Engines Holding	$	7,386,630
		AUTO COMPONENTS – 7.1%
	150,000	Continental*		11,671,942
	188,344	ElringKlinger		6,032,165
	80,000	Leoni*		2,716,151
				20,420,258
		CHEMICALS – 14.7%
	317,760	Lanxess		17,430,830
	360,000	Symrise		10,016,455
	79,364	Wacker Chemie		14,661,643
				42,108,928
		COMPUTERS & PERIPHERALS – 2.9%
	127,727	Wincor Nixdorf		8,337,551
		CONSTRUCTION & ENGINEERING – 8.4%
	133,181	Bilfinger Berger		9,190,733
	171,567	Hochtief		14,874,593
				24,065,326
		ELECTRICAL EQUIPMENT – 2.0%
	60,686	SGL Carbon*		2,105,133
	164,800	Tognum		3,654,077
				5,759,210
		HEALTH CARE PROVIDERS & SERVICES – 3.7%
	250,000	Celesio		5,445,951
	229,946	Rhoen Klinikum		5,079,716
				10,525,667
		HOUSEHOLD DURABLES – 0.3%
	118,886	Loewe		1,002,813
		INDUSTRIAL CONGLOMERATES – 4.0%
	172,583	Rheinmetall		11,424,589
		INSURANCE – 1.0%
	60,000	Hannover Rueckversicherung		2,763,104
		INTERNET SOFTWARE & SERVICES – 3.4%
	600,966	United Internet		9,728,266

Shares		Description	Value(a)
		LIFE SCIENCES TOOLS & SERVICES – 1.5%
	108,287	Gerresheimer*	$	4,337,957
		MACHINERY – 7.4%
	573,046	GEA Group		14,340,729
	190,000	Gildemeister		2,776,138
	298,963	MAX Automation		1,156,019
	32,714	Pfeiffer Vacuum Technology		3,098,803
				21,371,689
		METALS & MINING – 2.2%
	130,000	Aurubis		6,202,310
		PHARMACEUTICALS – 2.5%
	247,563	Stada Arzneimittel		7,116,147
		REAL ESTATE MANAGEMENT & DEVELOPMENT – 2.2%
	179,592	Deutsche Euroshop		6,372,028
		SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 3.4%
	180,000	Aixtron		5,355,867
	130,766	Kontron		1,136,577
	271,957	Solarworld		3,414,986
				9,907,430
		SOFTWARE – 6.0%
	200,000	PSI		3,952,751
	110,000	Software		13,302,315
				17,255,066
		SPECIALTY RETAIL – 3.3%
	30,000	Douglas Holdings		1,508,078
	50,000	Fielmann		4,669,323
	170,000	Praktiker Bau- und Heimwerkermaerkte		1,437,676
	120,000	Tom Tailor Holding*		1,924,509
				9,539,586
		TEXTILES, APPAREL & LUXURY GOODS – 0.6%
	5,647	Puma		1,865,237
		THRIFTS & MORTGAGE FINANCE – 1.6%
	210,000	Aareal Bank*		4,676,352
		TRADING COMPANIES & DISTRIBUTORS – 1.6%
	200,000	Kloeckner & Co.*		4,505,535

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 2010 (unaudited) (continued)

Shares		Description	Value(a)
INVESTMENTS IN GERMAN SECURITIES – 89.2% (continued)
		TRANSPORTATION INFRASTRUCTURE – 2.5%
	120,000	Fraport	$	7,306,583
		WIRELESS TELECOMMUNICATION SERVICES – 1.4%
	335,646	Freenet		3,953,145
		Total Common Stocks (cost $169,530,629)		247,931,407
		PREFERRED STOCKS – 2.9%
		HEALTH CARE EQUIPMENT & SUPPLIES – 0.5%
	62,632	Sartorius		1,504,561
		MACHINERY – 0.5%
	44,000	Jungheinrich		1,474,365
		MEDIA – 1.9%
	225,000	ProSiebenSat.1 Media		5,352,797
		Total Preferred Stocks (cost $3,813,738)		8,331,723
		Total Investments in German Securities (cost $173,344,367)		256,263,130
INVESTMENTS IN DUTCH COMMON STOCKS – 8.8%
		AEROSPACE & DEFENSE – 6.0%
	689,645	EADS*		17,221,019
		LIFE SCIENCES TOOLS & SERVICES – 2.8%
	445,887	QIAGEN*		7,987,759
		Total Investments in Dutch Common Stocks (cost $24,025,610)		25,208,778
		Total Investments in Common and Preferred Stocks – 98.0% (cost $197,369,977)		281,471,908

Shares		Description	Value(a)
CASH EQUIVALENTS – 0.0%
	197,184	Central Cash Management Fund, 0.21%(b) (cost $197,184)	$	197,184
		Total Investments – 98.0% (cost $197,567,161)**		281,669,092
		Other Assets and Liabilities, Net – 2.0%		5,626,266
		NET ASSETS – 100.0%	$	287,295,358

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 $201,620,475. At September 30, 2010, net unrealized appreciation for all securities based on tax cost was $80,048,617. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $89,941,554 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $9,892,937.

(a) Value stated in US dollars.

(b) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.

THE NEW GERMANY FUND, INC.

SCHEDULE OF INVESTMENTS — SEPTEMBER 30, 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 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, 2010 in valuing the Fund's investments.

Category	Level 1		Level 2		Level 3		Total
Common Stocks and/or Other Equity Investments(c)
Germany	$	256,263,130	$	—	$	—	$	256,263,130
Netherlands		25,208,778		—		—		25,208,778
Short-Term Instruments		197,184		—		—		197,184
Total	$	281,669,092	$	—	$	—	$	281,669,092

There have been no transfers in and out of Level 1 and Level 2 fair value measurements during the period ended September 30, 2010.

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:	November 23, 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.

By:	/s/Michael G. Clark Michael G. Clark President

Date:	November 23, 2010



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

Date:	November 23, 2010