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
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The New Ireland Fund, Inc.
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(Exact name of registrant as specified in charter)
Kleinwort Benson Investors International, Ltd.
One Rockefeller Plaza, 32nd Floor
New York, NY 10020
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(Address of principal executive offices) (Zip code)
BNY Mellon Investment Servicing (US) Inc.
One Boston Place, 34th Floor
Boston, MA 02108
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(Name and address of agent for service)
Registrant's telephone number, including area code: 508 871 8500
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Date of fiscal year end: October 31
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Date of reporting period: July 31, 2011
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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 (Sections 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. Section 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule of Investments is attached herewith.
THE
NEW IRELAND
FUND
Third Quarter Report
July 31, 2011
INVESTMENT SUMMARY (UNAUDITED)
TOTAL RETURN (%)
MARKET VALUE (a) NET ASSET VALUE (a)
---------------------- ----------------------
AVERAGE AVERAGE
CUMULATIVE ANNUAL(b) CUMULATIVE ANNUAL(b)
---------- --------- ---------- ---------
Current Quarter (5.58) (5.58) (7.35) (7.35)
One Year 27.28 27.28 21.34 21.34
Three Year (16.44) (5.81) (13.89) (4.86)
Five Year (32.16) (7.47) (30.43) (7.00)
Ten Year 64.38 5.10 52.82 4.40
PER SHARE INFORMATION AND RETURNS
2011
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD
------ ------ ----- ----- ----- ------ ------ ------ ----- ----- -----
Net Asset Value ($) 13.28 11.04 16.29 20.74 24.36 32.55 30.95 10.18 8.20 7.70 8.95
Income Dividends ($) (0.01) (0.03) -- (0.09) (0.03) (0.16) (0.24) (0.36) (0.33) -- (0.06)
Capital Gains
Other Distributions ($) (2.65) (0.69) -- -- -- (1.77) (2.40) (4.86) (2.76) -- --
Total Return (%) (a) -20.99 -11.44 47.55 28.14 17.51 45.97 2.88 -58.62 26.91 -6.10 17.24 (b)
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 July 31, 2011
(Percentage of Net Assets)
(Unaudited)
[PIE CHART]
Food and Agriculture 4.60%
Business Services 5.45%
Diversified Financial Services 5.58%
Energy 6.46%
Health Care Services 8.51%
Transportation 12.25%
Other Assets 15.20%
Agriculture Operations 4.58%
Construction and Building Materials 21.81%
Food and Beverages 15.56%
Top 10 Holdings by Issuer as of July 31, 2011
HOLDING SECTOR % OF NET ASSETS
---------------------------- ----------------------------------- ---------------
CRH PLC Construction and Building Materials 13.41%
Ryanair Holdings PLC Transportation 7.41%
DCC PLC Business Services 5.45%
C&C Group PLC Food and Beverages 4.75%
Kingspan Group PLC Construction and Building Materials 4.70%
Kerry Group PLC, Series A Food and Beverages 4.67%
Aryzta AG Food and Agriculture 4.60%
Dragon Oil PLC Energy 4.59%
Paddy Power PLC Leisure and Hotels 4.54%
Elan Corp. PLC-Sponsored ADR Health Care Services 4.53%
2
THE NEW IRELAND FUND, INC.
Portfolio Holdings (unaudited)
Value (U.S.)
July 31, 2011 Shares (Note A)
------------- ------- ------------
COMMON STOCKS (97.87%)
COMMON STOCKS OF IRISH COMPANIES (88.55%)
AGRICULTURAL OPERATIONS (4.58%)
Continental Farmer Group PLC* 765,697 $ 341,097
Origin Enterprises PLC 434,790 2,311,749
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2,652,846
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BUSINESS SERVICES (5.45%)
DCC PLC 116,820 3,159,340
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BUSINESS SUPPORT SERVICES (3.33%)
CPL Resources PLC 497,050 1,928,516
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CONSTRUCTION AND BUILDING MATERIALS (21.81%)
CRH PLC 395,038 7,777,122
Grafton Group PLC-UTS 513,167 2,145,909
Kingspan Group PLC 270,673 2,722,717
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12,645,748
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DIVERSIFIED FINANCIAL SERVICES (5.58%)
FBD Holdings PLC 51,296 507,881
IFG Group PLC 624,801 1,571,228
TVC Holdings PLC* 815,973 902,872
Worldspreads Group PLC* 405,006 256,079
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3,238,060
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ENERGY (4.59%)
Dragon Oil PLC 296,983 2,661,747
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FOOD AND AGRICULTURE (4.60%)
Aryzta AG 49,417 2,667,946
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FOOD AND BEVERAGES (13.31%)
C&C Group PLC 540,907 2,751,600
Glanbia PLC 296,437 1,946,315
Kerry Group PLC, Series A 65,481 2,704,812
Total Produce PLC 552,258 313,472
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7,716,199
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HEALTH CARE SERVICES (8.51%)
Elan Corp. PLC-Sponsored ADR* 237,200 2,623,432
ICON PLC-Sponsored ADR* 70,767 1,580,227
United Drug PLC 216,966 729,570
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4,933,229
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3
THE NEW IRELAND FUND, INC.
Portfolio Holdings (unaudited) (continued)
Value (U.S.)
July 31, 2011 Shares (Note A)
------------- ------- ------------
LEISURE AND HOTELS (4.54%)
Paddy Power PLC 53,771 $ 2,631,024
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TRANSPORTATION (12.25%)
Aer Lingus Group PLC* 836,229 813,530
Irish Continental Group PLC 91,000 1,994,209
Ryanair Holdings PLC 937,342 4,295,484
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7,103,223
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TOTAL COMMON STOCKS OF IRISH COMPANIES
(Cost $44,112,272) 51,337,878
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COMMON STOCKS OF DUTCH COMPANIES (2.25%)
FOOD AND BEVERAGES (2.25%)
Unilever NV-CVA 40,000 1,301,930
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TOTAL COMMON STOCKS OF DUTCH COMPANIES
(Cost $1,236,299) 1,301,930
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COMMON STOCKS OF GERMAN COMPANIES (3.07%)
INFORMATION TECHNOLOGY (3.07%)
SAP AG 28,400 1,781,199
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TOTAL COMMON STOCKS OF GERMAN COMPANIES
(Cost $1,690,141) 1,781,199
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COMMON STOCKS OF FRENCH COMPANIES (4.00%)
ENERGY (1.87%)
Total SA 20,000 1,085,804
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INDUSTRIALS (2.13%)
Schneider Electric SA 8,500 1,235,504
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TOTAL COMMON STOCKS OF FRENCH COMPANIES
(Cost $2,559,869) 2,321,308
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TOTAL COMMON STOCKS BEFORE FOREIGN CURRENCY ON DEPOSIT
(Cost $49,598,581) $ 56,742,315
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Face
Value
--------
FOREIGN CURRENCY ON DEPOSIT (1.62%)
British Pounds Sterling L 19,706 32,348
Euro E629,924 905,206
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TOTAL FOREIGN CURRENCY ON DEPOSIT
(Cost $935,945)** 937,554
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4
THE NEW IRELAND FUND, INC.
Portfolio Holdings (unaudited) (continued)
Value (U.S.)
July 31, 2011 (Note A)
------------------------------------ ------------
TOTAL INVESTMENTS (99.49%)
(Cost $50,534,526) $ 57,679,869
OTHER ASSETS AND LIABILITIES (0.51%) 293,494
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NET ASSETS (100.00%) $ 57,973,363
============
* 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 Inputs of methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. Transfers
in and out of levels are recognized at market value at the end of the period.
The summary of inputs used to value the Fund's net assets as of July 31, 2011 is
as follows (See Note A - Security Valuation in the Notes to Quarterly Portfolio
Holdings):
LEVEL 2
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
07/31/11 PRICE INPUTS INPUTS
----------- ----------- ----------- ------------
Investments in Securities +
Common Stocks*
Agricultural Operations $ 2,652,846 $ 2,311,749 $ 341,097 $ --
Business Services 3,159,340 3,159,340 -- --
Business Support Services 1,928,516 -- 1,928,516 --
Construction
and Building Materials 12,645,748 12,645,748 -- --
Diversified Financial
Services 3,238,060 2,981,981 256,079 --
Energy 3,747,551 3,747,551 -- --
Food and Agriculture 2,667,946 2,667,946 -- --
Food and Beverages 9,018,129 9,018,129 -- --
Health Care Services 4,933,229 4,933,229 -- --
Industrials 1,235,504 1,235,504 -- --
Information Technology 1,781,199 1,781,199 -- --
Leisure and Hotels 2,631,024 2,631,024 -- --
Transportation 7,103,223 7,103,223 -- --
----------- ----------- ----------- ------------
Total Common Stocks $56,742,315 $54,216,623 $ 2,525,692 $ --
=========== =========== =========== ============
+ Total Investments exclude Foreign Currency on Deposit.
* See Portfolio Holdings detail for country breakout.
The Fund did not have any significant transfers in and out of Level 1 and Level
2 during the period.
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.
FAIR VALUE MEASUREMENTS: As described above, the Fund utilizes various
methods to measure the fair value of most of its investments on a recurring
basis. U.S. Generally Accepted Accounting Principals ("GAAP") establishes a
hierarchy that prioritizes inputs to valuation methods. The three levels of
inputs are:
Level 1 - unadjusted quoted prices in active markets for identical
assets or liabilities that the Fund has the ability to access.
Level 2 - observable inputs other than quoted prices included in level 1
that are observable for the asset or liability, either
directly or indirectly. These inputs may include quoted prices
for the identical instrument on an inactive market, prices for
similar instruments, interest rates, prepayment speeds, credit
risk, yield curves, default rates and similar data.
Level 3 - unobservable inputs for the asset or liability, to the extent
relevant observable inputs are not available, representing the
Fund's own assumptions about the assumptions a market
participant would use in valuing the asset or liability, and
would be based on the best information available.
The availability of observable inputs can vary from security to security
and is affected by a wide variety of factors, including, for example, the type
of security, whether the security is new and not yet established in the
marketplace, the liquidity of markets, and other characteristics particular to
the security. To the extent that valuation is based on models or inputs that are
less observable or unobservable in the market, the determination of fair value
requires more judgment. Accordingly, the degree of judgment exercised in
determining fair value is greatest for instruments categorized in level 3.
The inputs used to measure fair value may fall into different levels of
the fair value hierarchy. In such cases, for disclosure purposes, the level in
the fair value hierarchy within which the fair value measurement falls in its
entirety, is determined based on the lowest level input that is significant to
the fair value measurement in its entirety. A summary of the levels of the
Fund's investments as of July 31, 2011 is included with the Fund's Portfolio of
Investments.
At the end of each calendar quarter, management evaluates the Level 2 and
Level 3 assets and liabilities, if any, for changes in liquidity, including but
not limited to: whether a broker is willing to execute at the quoted price, the
depth and consistency of prices from third party services, and the existence of
contemporaneous, observable trades in the market. Additionally, management
6
THE NEW IRELAND FUND, INC.
NOTES TO PORTFOLIO HOLDINGS (unaudited) (continued)
evaluates the Level 1 and Level 2 assets and liabilities on a quarterly basis
for changes in listings or delistings on national exchanges.
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-Interactive Data Corp. ("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 been terminated by
settlements or by entering into offsetting 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 July 31, 2011.
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 July 31, 2011 were as
follows:
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED NET UNREALIZED APPRECIATION NET
TOTAL COST OF APPRECIATION DEPRECIATION APPRECIATION ON FOREIGN UNREALIZED
INVESTMENTS ON INVESTMENTS ON INVESTMENTS ON INVESTMENTS CURRENCY APPRECIATION
------------- -------------- -------------- -------------- ------------ ------------
$ 49,598,581 $ 12,901,151 $ (5,757,417) $ 7,143,734 $ 3,668 $ 7,147,402
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.
7
THE NEW IRELAND FUND, INC.
Notes to Financial Statements (unaudited) (continued)
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.
8
THE NEW IRELAND FUND, INC.
DIRECTORS AND OFFICERS
Peter J. Hooper - Chairman of the Board
Sean Hawkshaw - Director and President
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
Kleinwort Benson Investment International Ltd.
One Rockefeller Plaza - 32nd Floor
New York, NY 10020
ADMINISTRATOR
BNY Mellon Investment Servicing (US) 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 BNY Mellon Center
One Boston Place
201 Washington Street
34th Floor
Boston, Massachusetts 02109
Telephone inquiries should be directed to:
1-800-GO-TO-IRL (1-800-468-6475)
Website address:
www.newirelandfund.com
IR-QTR 07/11
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.
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By (Signature and Title)* /s/ Sean Hawkshaw
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Sean Hawkshaw, President
(principal executive officer)
Date October 4, 2011
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/ Sean Hawkshaw
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Sean Hawkshaw, President
(principal executive officer)
Date October 4, 2011
By (Signature and Title)* /s/ Lelia Long
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Lelia Long, Treasurer
(principal financial officer)
Date October 6, 2011
* Print the name and title of each signing officer under his or her
signature.