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.
(Exact name of registrant as specified in charter)
Bank of Ireland Asset Management (U.S.) Limited
40 Mespil Road
DUBLIN 4, IRELAND
(Address of principal executive offices) (Zip code)
PNC Global Investment Servicing (U.S.) Inc.
99 High Street, 27th Floor
BOSTON, MA 02110
(Name and address of agent for service)
Registrant's telephone number, including area code: 011 353 1 6378000
-------------------
Date of fiscal year end: OCTOBER 31
Date of reporting period: JULY 31, 2009
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
THIRD QUARTER REPORT
JULY 31, 2009
INVESTMENT SUMMARY (UNAUDITED)
TOTAL RETURN (%)
MARKET VALUE (a) NET ASSET VALUE (a)
---------------------- ----------------------
AVERAGE AVERAGE
CUMULATIVE ANNUAL(b) CUMULATIVE ANNUAL(b)
---------- --------- ---------- ---------
Current Quarter 29.82 29.82 17.09 17.09
One Year (31.96) (31.96) (29.41) (29.41)
Three Year (44.75) (17.94) (42.97) (17.07)
Five Year (3.93) (0.80) (5.22) (1.07)
Ten Year 29.94 2.65 20.26 1.86
PER SHARE INFORMATION AND RETURNS
2009
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 YTD
----- ----- ------ ------ ----- ----- ----- ----- ----- ------ -----
Net Asset
Value ($) 19.75 20.06 13.28 11.04 16.29 20.74 24.36 32.55 30.95 10.18 7.40
Income
Dividends ($) -- (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) 14.53
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, 2009
(PERCENTAGE OF NET ASSETS)
(UNAUDITED)
(PIE CHART)
Energy 3.74%
Construction and Building Materials 27.27%
Transportation 12.51%
Other Assets 11.84%
Food and Beverages 10.76%
Health Care Services 9.93%
Financial 7.46%
Business Services 6.91%
Diversified Financial Services 4.99%
Food and Agriculture 4.59%
TOP 10 HOLDINGS BY ISSUER AS OF JULY 31, 2009 (UNAUDITED)
HOLDING SECTOR % OF NET ASSETS
------- ------ ---------------
CRH PLC Construction and Building Materials 19.82%
Ryanair Holdings PLC Transportation 10.66%
DCC PLC Business Services 6.91%
Elan Corp. PLC-Sponsored ADR Health Care Services 5.73%
Aryzta AG Food and Agriculture 4.60%
Kerry Group PLC, Series A Food and Beverages 4.28%
Grafton Group PLC-UTS Construction and Building Materials 4.20%
Allied Irish Banks PLC Financial 3.96%
Dragon Oil PLC Energy 3.74%
Irish Life & Permanent PLC Financial 3.51%
2
THE NEW IRELAND FUND, INC.
PORTFOLIO HOLDINGS (UNAUDITED)
Value (U.S.)
July 31, 2009 Shares (Note A)
------------- ---------- ------------
COMMON STOCKS (99.86%)
COMMON STOCKS OF IRISH COMPANIES (99.86%)
AGRICULTURAL OPERATIONS (3.00%)
Origin Enterprises PLC(a)* 428,163 $ 1,608,631
------------
BUSINESS SERVICES (6.91%)
DCC PLC 174,079 3,702,023
Newcourt Group PLC* 155,655 0
------------
3,702,023
------------
BUSINESS SUPPORT SERVICES (1.48%)
CPL Resources PLC 382,417 786,152
Veris PLC* 18,310 6,230
------------
792,382
------------
CONSTRUCTION AND BUILDING MATERIALS (27.27%)
CRH PLC 447,141 10,618,442
Grafton Group PLC-UTS 469,211 2,248,466
Kingspan Group PLC 260,706 1,744,595
------------
14,611,503
------------
DIVERSIFIED FINANCIAL SERVICES (4.99%)
FBD Holdings PLC 119,561 1,186,558
IFG Group PLC 624,801 930,106
TVC Holdings PLC(a)* 815,973 555,288
------------
2,671,952
------------
ENERGY (3.74%)
Dragon Oil PLC* 363,569 2,005,109
------------
FINANCIAL (7.46%)
Allied Irish Banks PLC 849,471 2,119,643
Irish Life & Permanent PLC 384,862 1,878,094
------------
3,997,737
------------
FOOD & AGRICULTURE (4.59%)
Aryzta AG* 71,179 2,462,313
------------
3
THE NEW IRELAND FUND, INC.
PORTFOLIO HOLDINGS (UNAUDITED) (CONTINUED)
Value (U.S.)
July 31, 2009 Shares (Note A)
------------- ---------- ------------
COMMON STOCKS (CONTINUED)
COMMON STOCKS OF IRISH COMPANIES (CONTINUED)
FOOD AND BEVERAGES (10.76%)
C&C Group PLC 613,858 $ 1,784,117
Fyffes PLC 552,258 297,528
Glanbia PLC 317,890 1,126,726
Kerry Group PLC, Series A 97,278 2,292,172
Total Produce PLC 552,258 266,209
------------
5,766,752
------------
HEALTH CARE SERVICES (9.93%)
Elan Corp. PLC-Sponsored ADR* 389,700 3,070,836
ICON PLC-Sponsored ADR* 53,449 1,256,051
United Drug PLC 370,043 991,552
------------
5,318,439
------------
LEISURE AND HOTELS (3.34%)
Paddy Power PLC 72,370 1,791,038
------------
REAL ESTATE DEVELOPMENT (0.04%)
Blackrock International Land PLC* 218,009 22,563
------------
TECHNOLOGY (3.26%)
Norkom Group PLC(a)* 364,481 537,415
Norkom Group PLC* 818,699 1,207,144
------------
1,744,559
------------
TELECOMMUNICATIONS (0.58%)
Zamano PLC* 1,100,000 311,907
------------
TRANSPORTATION (12.51%)
Aer Lingus Group PLC* 501,223 319,775
Ryanair Holdings PLC* 1,300,000 5,713,557
Ryanair Holdings PLC-Sponsored ADR* 23,587 667,748
------------
6,701,080
------------
TOTAL COMMON STOCKS OF IRISH COMPANIES
(Cost $65,127,142) 53,507,988
------------
TOTAL COMMON STOCKS BEFORE FOREIGN CURRENCY ON DEPOSIT
(Cost $65,127,142) $ 53,507,988
------------
4
THE NEW IRELAND FUND, INC.
PORTFOLIO HOLDINGS (UNAUDITED) (CONTINUED)
FACE Value (U.S.)
July 31, 2009 VALUE (Note A)
------------- ---------- ------------
FOREIGN CURRENCY ON DEPOSIT (0.06%)
British Pounds Sterling L 600 $ 996
Euro E 20,138 28,551
------------
TOTAL FOREIGN CURRENCY ON DEPOSIT
(Cost $29,543)** 29,547
------------
TOTAL INVESTMENTS (99.92%)
(Cost $65,156,685) 53,537,535
OTHER ASSETS AND LIABILITIES (0.08%) 43,294
------------
NET ASSETS (100.00%) $ 53,580,829
============
(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 July 31, 2009, these securities amounted to $2,701,334 or 5.04% 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 July 31,
2009 is as follows (See Note A - Security Valuation in the Notes to Portfolio
Holdings):
LEVEL 2
TOTAL MARKET LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
07/31/09 PRICE INPUTS INPUTS
------------ ----------- ----------- ------------
Common Stocks* $53,507,988 $53,507,988 $-- $--
----------- ----------- --- ---
Total Investments+ $53,507,988 $53,507,988 $-- $--
=========== =========== === ===
* See Portfolio Holdings detail for industry breakout.
+ Total Investments 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)
In April 2009, FASB issued FASB Staff Position No. 157-4, "Determining Fair
Value when the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not Orderly",
("FSP 157-4"). FSP 157-4 is effective for fiscal years and interim periods
ending after June 15, 2009. FSP 157-4 provides additional guidance for
estimating fair value in accordance with SFAS 157, when the volume and level of
activity for the asset or liability have significantly decreased. FSP 157-4 also
includes guidance on identifying circumstances that indicate a transaction is
not orderly. FSP 157-4 requires entities to describe the inputs and valuation
techniques used to measure fair value and changes in those techniques and
related inputs during the period. FSP 157-4 expands the three-level hierarchy
disclosure and the level three roll forward disclosure for each major security
type as described in paragraph 19 of SFAS 115, "Accounting for Certain
Investments in Debt and Equity Securities".
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 July 31, 2009 is
included with the Fund's Portfolio Holdings.
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
6
THE NEW IRELAND FUND, INC.
NOTES TO PORTFOLIO HOLDINGS (UNAUDITED) (CONTINUED)
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, 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 July 31, 2009 were as
follows:
GROSS
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED NET UNREALIZED APPRECIATION NET
TOTAL COST OF APPRECIATION DEPRECIATION DEPRECIATION ON FOREIGN UNREALIZED
INVESTMENTS ON INVESTMENTS ON INVESTMENTS ON INVESTMENTS CURRENCY DEPRECIATION
------------- -------------- -------------- -------------- ------------ ------------
$65,127,142 $11,143,032 $(22,762,186) $(11,619,154) $793 $(11,618,361)
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
Chris Johns - 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 07/09
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/ CHRIS JOHNS
-------------------------------------------------------
Chris Johns, President
(principal executive officer)
Date 9/18/09
----------------------------------------------------------------------------
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/ CHRIS JOHNS
-------------------------------------------------------
Chris Johns, President
(principal executive officer)
Date 9/18/09
----------------------------------------------------------------------------
By (Signature and Title)* /S/ LELIA LONG
-------------------------------------------------------
Lelia Long, Treasurer
(principal financial officer)
Date 9/22/09
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.