UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-05984
THE NEW IRELAND FUND, INC.
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(Exact name of registrant as specified in charter)
Bank of Ireland Asset Management (U.S.) Limited
40 Mespil Road
DUBLIN 4, IRELAND
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(Address of principal executive offices) (Zip code)
PNC Global Investment Servicing (U.S.) Inc.
99 High Street, 27th Floor
BOSTON, MA 02110
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(Name and address of agent for service)
Registrant's telephone number, including area code: 011 353 1 6378000
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Date of fiscal year end: OCTOBER 31
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Date of reporting period: JANUARY 31, 2009
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule of Investments is attached herewith.
THE NEW IRELAND FUND
FIRST QUARTER REPORT
JANUARY 31, 2009
INVESTMENT SUMMARY (UNAUDITED)
TOTAL RETURN (%)
MARKET VALUE (A) NET ASSET VALUE (A)
---------------------- ----------------------
AVERAGE AVERAGE
CUMULATIVE ANNUAL(B) CUMULATIVE ANNUAL(B)
---------- --------- ---------- ---------
Current Quarter (23.10) (23.10) (16.12) (16.12)
One Year (65.55) (65.55) (60.86) (60.86)
Three Year (59.31) (25.90) (54.32) (22.99)
Five Year (32.73) (7.62) (29.77) (6.82)
Ten Year (32.60) (3.87) (20.49) (2.27)
PER SHARE INFORMATION AND RETURNS
2009
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 YTD
------ ------ ------- ------ ----- ----- ------ ------ ------ ------- ------
Net Asset Value ($) 19.75 20.06 13.28 11.04 16.29 20.74 24.36 32.55 30.95 10.18 5.42
Income Dividends ($) -- (0.13) (0.01) (0.03) -- (0.09) (0.03) (0.16) (0.24) (0.36) (0.33)
Capital Gains
Other
Distributions ($) (1.14) (1.60) (2.65) (0.69) -- -- -- (1.77) (2.40) (4.86) (2.76)
Total
Return (%) (a) (b) (2.37) 12.86 (20.99) (11.44) 47.55 28.14 17.51 45.97 2.88 (58.62) (16.12)
NOTES
(a) Total Market Value returns reflect changes in share market prices and
assume reinvestment of dividends and capital gain distributions, if any, at
the price obtained under the Dividend Reinvestment and Cash Purchase Plan
("the Plan"). Total Net Asset Value returns reflect changes in share net
asset value and assume reinvestment of dividends and capital gain
distributions, if any, at the price obtained under the Plan. For more
information with regard to the Plan, see the most recent annual report
filed with the Securities and Exchange Commission.
(b) Periods less than one year are not annualized.
PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE OF THE FUND.
1
PORTFOLIO BY MARKET SECTOR AS OF JANUARY 31, 2009
(PERCENTAGE OF NET ASSETS)
(UNAUDITED)
Diversified Financial Services 4.65%
Financial 4.89%
Health Care Services 8.21%
Business Services 7.33%
Food and Beverages 9.30%
Food and Agriculture 4.31%
Agricultural Operations 2.33%
Construction and Building Materials 29.45%
Transportation 16.56%
Other Assets 12.97%
TOP 10 HOLDINGS BY ISSUER AS OF JANUARY 31, 2009 (UNAUDITED)
% OF
HOLDING SECTOR NET ASSETS
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CRH PLC Construction and Building 24.96%
Materials
Ryanair Holdings PLC Transportation 11.60%
DCC PLC Business Services 7.31%
Kerry Group PLC, Series A Food and Beverages 5.00%
Elan Corp. PLC-Sponsored ADR Health Care Services 4.95%
Aryzta AG Food and Agriculture 4.31%
Ryanair Holdings PLC-Sponsored
ADR Transportation 3.38%
United Drug PLC Health Care Services 3.26%
Allied Irish Banks PLC Financial 3.22%
FBD Holdings PLC Diversified Financial Services 2.44%
2
THE NEW IRELAND FUND, INC.
PORTFOLIO HOLDINGS (UNAUDITED)
Value (U.S.)
January 31, 2009 Shares (Note A)
---------------- --------- ------------
COMMON STOCKS (94.47%)
COMMON STOCKS OF IRISH COMPANIES (94.47%)
AGRICULTURAL OPERATIONS (2.33%)
Origin Enterprises PLC(a)* 428,163 $ 960,204
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BUSINESS SERVICES (7.33%)
DCC PLC 202,501 3,010,242
Newcourt Group PLC* 155,655 8,976
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3,019,218
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BUSINESS SUPPORT SERVICES (1.24%)
CPL Resources PLC 220,495 299,517
Veris PLC* 500,000 211,446
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510,963
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CONSTRUCTION AND BUILDING MATERIALS (29.44%)
CRH PLC 441,003 10,285,589
Grafton Group PLC-UTS 469,211 950,039
Kingspan Group PLC 260,706 896,705
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12,132,333
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DIVERSIFIED FINANCIAL SERVICES (4.65%)
Boundary Capital PLC(a)* 635,534 48,866
FBD Holdings PLC 98,198 1,006,720
IFG Group PLC 624,801 496,421
TVC Holdings PLC(a)* 815,973 365,982
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1,917,989
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ENERGY (1.53%)
Dragon Oil PLC* 277,156 628,657
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FINANCIAL (4.89%)
Allied Irish Banks PLC 849,471 1,328,081
Irish Life & Permanent PLC 324,867 686,920
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2,015,001
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FOOD & AGRICULTURE (4.31%)
Aryzta AG* 71,179 1,774,139
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3
THE NEW IRELAND FUND, INC.
PORTFOLIO HOLDINGS (UNAUDITED) (CONTINUED)
Value (U.S.)
January 31, 2009 Shares (Note A)
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COMMON STOCKS (CONTINUED)
COMMON STOCKS OF IRISH COMPANIES (CONTINUED)
FOOD AND BEVERAGES (9.30%)
C&C Group PLC 613,858 $ 615,164
Fyffes PLC 552,258 173,390
Glanbia PLC 237,543 809,730
Kerry Group PLC, Series A 109,675 2,059,025
Total Produce PLC 552,258 173,390
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3,830,699
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HEALTH CARE SERVICES (8.21%)
Elan Corp. PLC-Sponsored ADR* 282,000 2,038,860
United Drug PLC 452,235 1,344,524
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3,383,384
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LEISURE AND HOTELS (2.03%)
Paddy Power PLC 59,912 836,867
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REAL ESTATE DEVELOPMENT (0.03%)
Blackrock International Land PLC* 218,009 11,175
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TECHNOLOGY (2.21%)
Norkom Group PLC(a)* 364,481 280,248
Norkom Group PLC* 818,699 629,494
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909,742
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TELECOMMUNICATIONS (0.41%)
Zamano PLC* 1,100,000 169,157
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TRANSPORTATION (16.56%)
Aer Lingus Group PLC(a)* 249,183 322,520
Aer Lingus Group PLC* 252,040 326,217
Ryanair Holdings PLC* 1,300,000 4,781,250
Ryanair Holdings PLC-Sponsored ADR* 57,996 1,393,064
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6,823,051
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TOTAL COMMON STOCKS OF IRISH COMPANIES
(Cost $65,758,281) 38,922,579
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TOTAL COMMON STOCKS BEFORE FOREIGN CURRENCY
ON DEPOSIT
(Cost $65,758,281) $ 38,922,579
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4
THE NEW IRELAND FUND, INC
PORTFOLIO HOLDINGS (UNAUDITED) (CONTINUED)
Face Value (U.S.)
January 31, 2009 Value (Note A)
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FOREIGN CURRENCY ON DEPOSIT (0.05%)
British Pounds Sterling L 600 $ 865
Euro E16,740 21,452
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TOTAL FOREIGN CURRENCY ON DEPOSIT
(Cost $22,968)** 22,317
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TOTAL INVESTMENTS (94.52%)
(Cost $65,781,249) 38,944,896
OTHER ASSETS AND LIABILITIES (5.48%) 2,257,394
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NET ASSETS (100.00%)
$41,202,290
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(a) Securities exempt from registration pursuant to Rule 144A under the
Securities Act of 1933, as amended. These securities may only be resold, in
transactions exempt from registration, to qualified institutional buyers.
At January 31, 2009, these securities amounted to $1,977,820 or 4.80% of
net assets. These securities have been determined by the Advisor to be
liquid.
* Non-income producing security.
** Foreign currency held on deposit at JPMorgan Chase & Co.
ADR - American Depositary Receipt traded in U.S. dollars.
UTS - Units
The summary of inputs used to value each Fund's net assets as of January
31, 2009 is as follows (See Note A - Security Valuation in the Notes to
Portfolio Holdings):
INVESTMENTS
VALUATION INPUTS IN SECURITIES
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Level 1 - Quoted Prices $38,922,579
AVERAGE
Level 3 - Significant Unobservable Inputs --
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Total Market Value of Investments $38,922,579
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+ Investments in Securities exclude Foreign Currency on Deposit.
5
THE NEW IRELAND FUND, INC.
NOTES TO PORTFOLIO HOLDINGS (UNAUDITED)
A. VALUATION AND INVESTMENT PRACTICES:
SECURITY VALUATION: Securities listed on a stock exchange for which market
quotations are readily available are valued at the closing prices on the date of
valuation, or if no such closing prices are available, at the last bid price
quoted on such day. If there are no such quotations available for the date of
valuation, the last available closing price will be used. The value of
securities and other assets for which no market quotations are readily
available, or whose values have been materially affected by events occurring
before the Fund's pricing time but after the close of the securities' primary
markets, are valued by methods deemed by the Board of Directors to represent
fair value. Short-term securities that mature in 60 days or less are valued at
amortized cost.
In September 2006, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 157 Fair Value Measurements
("FAS 157") effective for fiscal years beginning after November 15, 2007. This
standard clarifies the definition of fair value for financial reporting,
establishes a framework for measuring fair value and requires additional
disclosures about the use of fair value measurements. FAS 157 became effective
for the Fund as of November 1, 2008, the beginning of its current fiscal year.
The three levels of the fair value hierarchy under FAS 157 are described as
follows:
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 -- 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. A
summary of the inputs used to value the Fund's net assets as of January 31, 2009
is included with the Fund's Portfolio of Investments.
CURRENCY TRANSLATION: The books and records of the Fund are maintained in
U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the
spot rate of such currencies against U.S. dollars by obtaining from FT-IDC each
day the current 4:00pm London time spot rate and future rate (the future rates
are quoted in 30-day increments) on foreign currency contracts. Net realized
foreign currency gains and losses resulting from changes in exchange rates
include foreign currency gains and losses between trade date and settlement date
on investment securities transactions, foreign currency transactions and the
difference between the amounts of interest and dividends recorded on the books
of the Fund and the amount actually received. The portion of foreign currency
gains and losses related to fluctuation in exchange rates between the initial
purchase trade date and subsequent sale trade date is included in realized gains
and losses on security transactions.
FORWARD FOREIGN CURRENCY CONTRACTS: The Fund may enter into forward foreign
currency contracts for non-trading purposes in order to protect investment
securities and related receivables and payables against future changes in
foreign currency exchange rates. Fluctuations in the value of such contracts are
recorded as unrealized gains or losses; realized gains or losses include net
gains or losses on contracts which have terminated by settlements or by entering
into offsetting
6
THE NEW IRELAND FUND, INC.
NOTES TO PORTFOLIO HOLDINGS (UNAUDITED) (CONTINUED)
commitments. Risks associated with such contracts include movement in the value
of the foreign currency relative to the U.S. dollar and the ability of the
counterparty to perform. There were no such contracts open in the Fund as of
January 31, 2009.
SECURITIES TRANSACTIONS: Securities transactions are recorded as of the
trade date. Realized gains and losses from securities sold are recorded on the
identified cost basis.
B. UNREALIZED APPRECIATION/(DEPRECIATION):
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation on investments and depreciation on assets and
liabilities in foreign currencies on a tax basis as of January 31, 2009 were as
follows:
GROSS
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED NET UNREALIZED DEPRECIATION NET
TOTAL COST OF APPRECIATION DEPRECIATION DEPRECIATION ON FOREIGN UNREALIZED
INVESTMENTS ON INVESTMENTS ON INVESTMENTS ON INVESTMENTS CURRENCY DEPRECIATION
------------- -------------- -------------- -------------- ------------ ------------
$65,781,249 $7,242,964 $(34,078,666) $(26,835,702) $(326) $(26,836,028)
C. RISK FACTORS:
Investing in the fund may involve certain risks including, but not limited
to, those described below.
The prices of securities held by the fund may decline in response to
certain events, including those directly involving the companies whose
securities are owned by the fund; conditions affecting the general economy;
overall market changes; local, regional or global political, social or economic
instability; and currency, interest rate and commodity price fluctuations. The
growth-oriented, equity-type securities generally purchased by the fund may
involve large price swings and potential for loss.
Investments in securities issued by entities based outside the United
States may also be affected by currency controls; different accounting,
auditing, financial reporting, and legal standards and practices in some
countries; expropriation; changes in tax policy; greater market volatility;
differing securities market structures; higher transaction costs; and various
administrative difficulties, such as delays in clearing and settling portfolio
transactions or in receiving payment of dividends. These risks may be heightened
in connection with investments in developing countries.
7
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THE NEW IRELAND FUND, INC.
DIRECTORS AND OFFICERS
Peter J. Hooper - CHAIRMAN OF THE BOARD
Michael J. Grealy - PRESIDENT AND DIRECTOR
David Dempsey - DIRECTOR
Margaret Duffy - DIRECTOR
Denis P. Kelleher - DIRECTOR
George G. Moore - DIRECTOR
Lelia Long - TREASURER
Colleen Cummings - ASSISTANT TREASURER
Vincenzo A. Scarduzio - SECRETARY
Salvatore Faia - CHIEF COMPLIANCE OFFICER
PRINCIPAL INVESTMENT ADVISOR
Bank of Ireland Asset Management (U.S.) Limited
40 Mespil Road
Dublin 4, Ireland
ADMINISTRATOR
PNC Global Investment Servicing (U.S.) Inc.
4400 Computer Drive
Westborough, Massachusetts 01581
CUSTODIANS
JPMorgan Chase & Co.
North America Investment Services
3 Metro Tech - 7th Floor
Brooklyn, New York 11245
SHAREHOLDER SERVICING AGENT
American Stock Transfer & Trust Company
59 Maiden Lane
New York, New York 10038
LEGAL COUNSEL
Seward & Kissel LLP
One Battery Park Plaza
New York, New York 10004
INDEPENDENT PUBLIC REGISTERED ACCOUNTING FIRM
Tait Weller Baker LP
1818 Market Street
Philadelphia, PA 19103
CORRESPONDENCE
ALL CORRESPONDENCE SHOULD BE ADDRESSED TO:
The New Ireland Fund, Inc.
c/o PNC Global Investment Servicing (U.S.) Inc.
99 High Street
27th Floor
Boston, Massachusetts 02110
TELEPHONE INQUIRIES SHOULD BE DIRECTED TO:
1-800-GO-TO-IRL (1-800-468-6475)
WEBSITE ADDRESS:
www.newirelandfund.com
IR-QTR 01/09
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
quarter that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
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 IRELAND FUND, INC.
By (Signature and Title)* /S/ MICHAEL GREALY
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Michael Grealy, President
(principal executive officer)
Date MARCH 24, 2009
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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 (Signature and Title)* /S/ MICHAEL GREALY
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Michael Grealy, President
(principal executive officer)
Date MARCH 24, 2009
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By (Signature and Title)* /S/ LELIA LONG
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Lelia Long, Treasurer
(principal financial officer)
Date MARCH 24, 2009
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* Print the name and title of each signing officer under his or her signature.