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
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 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/Diane Kenneally

Diane Kenneally

Chief Financial Officer

   
Date: May 23, 2018