The first of 2013 was a fair-to-middling quarter for the AE Portfolio, at least if you’re comparing to major measures of equity performance such as the S&P/Australian Securities Exchange 200 Index, the S&P 500 Index and the MSCI World Index.

The main Australian benchmark, the S&P/ASX 200, generated a total return in US dollar terms during the first three months of the year of 8.47 percent. The S&P 500–the most widely benchmarked equity index in the world–was up 10.61 percent, while the MSCI World Index was up 7.87 percent.

The Australian dollar began 2013 at USD1.0394, sank as low as USD1.0196 on March 4 and surged to USD1.0419 by the end of March, providing a very slight uplift for US investors’ capital gains and dividends. As of this writing the aussie is at USD1.0503.

The 26 current members of the AE Portfolio, meanwhile, generated an average return of 6.39 percent, lagging even the broader AE How They Rate coverage universe, whose 115 members generated an average US-dollar total return of 6.89 percent.

Breaking it down to its constituent parts, however, reveals somewhat encouraging data. The Conservative Holdings, among which are five of the “Eight Income Wonders from Down Under” that comprised the original AE Portfolio, generated a total return of 9.71 percent, trailing only the S&P 500 among our three benchmarks.

The Aggressive Holdings, half of which hail from the Basic Materials sector, the biggest laggard among the 10 designated by S&P and that define our How They Rate groupings, posted a positive return of 2.53 percent.

Holding-Level Performance

The best performer among Conservative Holdings was April Sector Spotlight M2 Telecommunications Group Ltd (ASX: MTU, OTC: MTCZF), which was up 20.2 percent in US dollar terms over the first three months of the year.

M2 was also the subject of a September 2012 Sector Spotlight, from which time through April 12, 2013, it’s up 51.92 percent.

On March 18, 2013, M2 announced another set of acquisitions that is forecast to boost earnings by approximately 20 percent in fiscal 2014. This follows the June 2012 “transformative” acquisition of Primus Telecom Holdings Ltd that drove a significant increase in fiscal 2013 first-half earnings and 15.3 percent increase in M2’s interim dividend.

For more on M2’s recent activities see this month’s Sector Spotlight. M2 Telecommunications is now a buy on dips to USD5.25.

Ramsay Health Care Ltd (ASX: RHC, OTC: RMSYF), which operates private hospitals in Australia, Indonesia, the UK and France and is in the early stages of expansion into other parts of Asia, including Malaysia, posted a 19.8 percent total return in the first quarter.

Ramsay, which we added to the Portfolio in the September 2012 issue, has returned 32.69 percent since then. Management boosted the interim distribution by 13.7 percent when it revealed a 12.3 percent earnings increase for the first half of fiscal 2013. Ramsay Health Care is a buy on dips to USD30.

SMS Management & Technology Ltd (ASX: SMX, OTC: SMSUF) recovered from a late-2012 swoon triggered by a profit warning to post a solid, 12.9 percent first-quarter total return. SMS is a buy under USD6.50.

And Wesfarmers Ltd (ASX: WES, OTC: WFAFF, ADR: WFAFY), which we added to the Portfolio in November 2012, posted an 11.6 percent gain and is now 24 percent to the positive since it joined the Conservative Holdings. Wesfarmers is a buy on dips to USD40.

The worst-performing Conservative Holding was Cardno Ltd (ASX: CDD, OTC: COLDF), which was up 1.4 percent. Cardno posted fiscal 2013 first-half earnings that came in at the upper end of guidance management issued in November 2012.

This guidance, however, was lower than that proffered during the company’s August 2012 presentation of fiscal 2012 final results, and it caused a steep decline in the share price.

Cardno went from AUD7.80 on Nov. 19 to AUD6.01 by Nov. 21, a 22.9 percent haircut that was proven to be overdone by the company’s results and forecast for fiscal 2013.

Cardno climbed back from a post-revision closing low of AUD5.29 on the Australian Securities Exchange (ASX) on Nov. 30, 2012, to as high as AUD7.36 on Feb. 19, 2013, before settling back in recent weeks.

Management maintained the interim dividend at AUD0.18 per share, and Cardno laid a foundation for longer-term growth by executing five acquisitions in the mining, energy, environmental and infrastructure sectors during the period. Cardno remains a buy up to USD8.05.

The biggest drag on Aggressive Holdings’ performance during the first quarter was exerted by the second of our two Sector Spotlights for April, Rio Tinto Ltd (ASX: RIO, NYSE: RIO), which was off by 11.8 percent.

Rio was followed closely by fellow Super Miner BHP Billiton Ltd (ASX: BHP, NYSE: BHP), which posted its own double-digit first-quarter loss of 10 percent.

Both Rio and BHP have new CEOs in the aftermath of significant asset writedowns at both companies that left old leadership in tough stead with the respective boards of directors. Both companies are now engaged in critical looks at plans for capital and operating expenditures, and both companies appear to be on a more disciplined course concerning new projects.

We have more on Rio Tinto in a Sector Spotlight, while Portfolio Update takes a closer look at BHP Billiton. Rio is a buy under USD70 on the ASX.

Rio Tinto’s New York Stock Exchange (NYSE) listing is an American Depositary Receipt (ADR) that represents one share of the company’s London listing. Rio’s ADR is a buy under USD60.

BHP is a buy under USD40 on the ASX. BHP’s NYSE listing is an ADR worth two ordinary, ASX-listed shares. BHP’s ADR is a buy under USD80.

Our most recent addition to the Aggressive Holdings, Ausdrill Ltd (ASX: ASL, OTC: AUSDF) is not off to a good start. Although its first-quarter total return in US dollar terms was 2.8 percent, the stock is off by 17.9 percent since we made it an Aggressive Holding in a March Sector Spotlight.

One of the company’s main concentrations is providing drill and blast services to the gold mining industry. Ausdrill’s emphasis is on the production rather than the exploration part of the mining cycle, but the stock is nevertheless suffering the steep decline in the price of bullion over the last several weeks. The stock is also trading ex-dividend as of April 10, which has contributed some to the selling momentum.

We remain confident in Ausdrill’s long-term wealth-building capabilities, as its order book is strong and its relationships with top-tier miners are intact. Ausdrill is a buy under USD3.80.

Looking at the positive notes from the Aggressive Holdings, cinema, hotel and resort operator Amalgamated Holdings Ltd (ASX: AHD, OTC: None), which we added to the Portfolio in the November 2012 issue, more than justified our decision with a 23.2 percent total return for the first quarter of 2013.

The stock is now up 27.66 percent in US dollar terms from our initial recommendation through April 12, 2013. The one drawback is that Amalgamated doesn’t have an active listing on the US over-the-counter (OTC) market, though it has in the past traded under the symbol AMGHF.

Amalgamated, which runs movie theaters in Australia, New Zealand and Germany and hotels and resorts in Australia, boosted its interim dividend by 7.1 percent. Amalgamated Holdings is a buy on dips to USD7.50.

February 2013 addition Spark Infrastructure Group (ASX: SKI, OTC: SFDPF) is off to a solid start, with a 2.9 percent first-quarter US dollar total return and an 8.4 percent gain since we added it to the Aggressive Holdings.

We designated Spark, whose portfolio includes 49 percent interests in two entities that control three power companies in Australia, an Aggressive rather than a Conservative Holding because of restrictions on purchases of the stock by US investors.

On the merits Spark is suitable for investors of all risk tolerances. Spark Infrastructure is a buy under USD1.80.

Origin Energy Ltd (ASX: ORG, OTC: OGFGF, ADR: OGFGY) recovered from a downward guidance revision for full-year fiscal 2013 earnings and a cost blowout at its Australia-Pacific Liquefied Natural Gas (AP LNG) project to post a 17.1 percent total return in the first quarter.

The stock actually closed as high as AUD13.57 on the ASX on March 27 but has since settled to AUD12.72 as of this writing.

This week Origin signed an agreement to purchase gas for domestic users or projects other than AP LNG from Beach Energy Ltd (ASX: BPT, OTC: BEPTF, ADR: BCHEY) for up to AUD1.5 billion. The eight-year deal, under which deliveries will begin in 2015, pegged the per-gigajoule price at AUD7 to AUD9 for as much as 139 petajoules.

Origin’s Energy Markets CEO Frank Calabria noted in a statement that the agreement allows the company to lock in supply and bolster its east coast gas portfolio ahead of what’s expected to be a tripling of gas demand over the next decade. Origin Energy remains a buy under USD15.

How They Rated

Thirty-three members of the How They Rate coverage universe raised dividends during the recently concluded earnings reporting season. That’s matched by 33 companies that either reduced their payouts or didn’t declare a dividend at all.

Here’s a brief look, sector by How They Rate sector, at total return and dividend highlights and lowlights from the coverage universe.

Basic Materials

The ASX/S&P 200 Materials Index was off by 8 percent in US dollar terms during the first quarter. The How They Rate Basic Materials group–the worst performer among the 11 sectors in our coverage universe–was down 8.14 percent.

The most noteworthy positive performance for the period was turned in by mining services favorite MACA Ltd (ASX: MLD, OTC: None), which we’ve recommended in several In Focus features in the past. We’ve hesitated to add the stock to the Portfolio because it doesn’t have an active US OTC listing.

MACA, which boasts a contracted order book that provides at least AUD400 million of revenue per year over the next three fiscal years, posted a total return in US dollar terms of 31.1 percent. Management also boosted the interim dividend by 28.6 percent. MACA is a strong buy under USD3.

At the other end of the spectrum, Whitehaven Coal Ltd (ASX: WHC, OTC: WHITF) shed 39.2 percent to post the largest first-quarter loss among How They Rate Basic Materials names. Management also declared no dividend in respect of fiscal 2013 first-half results.

Whitehaven is suffering due to lower prices for coal as well the threat that major shareholder Nathan Tinkler is about to unload his stake in the company. Whitehaven is a hold at these levels.

Consumer Goods

Goodman Fielder Ltd (ASX: GFF, OTC: GDFLF, ADR: GDFLY), Australia’s largest food manufacturer, posted a 14.9 percent total return during the first quarter, even as management reported a 13 percent decline in normalized earnings before interest, taxation, depreciation and amortization (EBITDA).

Support for the stock is based on continuing efforts to streamline the company’s brand lineup and cut costs. Last month management completed the sale of the Champion flour milling business for NZD51 million that will go to further debt reduction.

Management also noted during its discussion of first-half results that it will resume paying dividends beginning with a “final” declaration for fiscal 2013 in August. Goodman Fielder hadn’t made a payment to shareholders since November 2011, as it held cash to strengthen its balance sheet and streamline its operation.

Goodman Fielder, a solid speculation for aggressive investors, is a buy on the ASX under USD0.75.

The stock also trades on the US OTC market as an ADR. Goodman Fielder’s ADR, which is worth 10 ordinary, ASX-listed shares, is a buy for aggressive investors under USD7.50.

Ridley Corp Ltd (ASX: RIC, OTC: RIDYF), meanwhile, which makes animal feed and has interests in salt as well, posted a negative total return of 15.2 percent during the first quarter.

Management also omitted the interim dividend, as the company posted a AUD12.7 million net loss due to AUD24.9 million of writedowns, impairments and transaction costs related to its Dry Creek and Cheetham salt assets. Ridley Corp is a hold.

Note that struggling surfwear manufacturer and marketer Billabong International Ltd (ASX: BBG, OTC: BLLAF, ADR: BLLAY), which was in a trading halt on the ASX from since March 29, 2013, until April 10, may be on the verge of being bought out for AUD0.60 per share by a group headed by a former company executive.

It’s unclear whether the standing proposal, which is currently being evaluated by Billabong, will mature into a firm offer.

The shares have sunk to AUD0.52, down from AUD2.29 a year ago and well below the AUD3.30 per share offer it received from TPG Capital in 2012. Sell Billabong.

Consumer Services

All 16 Consumer Services companies under How They Rate coverage posted positive total return figures during the first quarter of 2013, as the group posted the top average among the 11 sectors with an average of 26.93 percent. The S&P/ASX 200 Consumer Services Index, meanwhile, was up 13.12 percent.

The most impressive dual return/dividend performance among the entertainment, retail, media and education companies that comprise the segment was turned in by electronics and appliance store operator JB Hi-Fi Ltd (ASX: JBH, OTC:  JBHIF).

We wrote up and recommended JB as a buy under USD9.75 in the August 2012 In Focus feature Others Receiving Votes, wherein we discussed a group of favorite stocks that sat just outside the Portfolio.

The stock dipped below that buy-under target during September 2012 but has surged to AUD14.68 as of its April 12 close on the ASX. That’s about USD15.40 based on prevailing exchange rates.

JB, which on a cost-of-doing-business basis really shines against its retail peers, has also established a moderately successful presence online with a web-based store that allows consumers to download music, mitigating somewhat the threat to traditional bricks-and-mortar electronics shops posed by Amazon.com Inc (NSDQ: AMZN) and Apple Inc’s (NSDQ: AAPL) iTunes.

Management reported expectations-beating fiscal 2013 first-half results, helped in part by a 40 percent surge in online sales, and boosted the interim dividend by 2.8 percent. At these levels, however, JB Hi-Fi is effectively a hold.

Other Consumer Services companies with impressive return figures for the first quarter include APN News & Media Holdings Ltd (ASX: APN, OTC: APNDF), which showed 46.4 percent upside during the period. Management, however, didn’t declare a final dividend in respect of 2012 results, and the total payout for the year was down 82.5 percent. APN is a sell.

Retailer Harvey Norman Holdings Ltd (ASX: HVN, OTC: None) and media outfit Southern Cross Media Ltd (ASX: SXL, OTC: SOUTF) both posted total return numbers greater than 40 percent but also reduced interim dividends by 10 percent.

Harvey Norman, which was up 44.1 percent for the first quarter, and Southern Cross, which was up 49 percent, are both rated hold.

Gambling and gaming companies TABCORP Holdings Ltd (ASX: TAH, OTC: TABCF) and Tatts Group Ltd (ASX: TTS, OTC: TTSLF) were the underperformers among the group, posting total returns of 9.1 percent and 8.2 percent, respectively.

They were the only two not to post double-digit returns for the quarter, as a beaten-down sector enjoyed a positive uplift due to the Reserve Bank of Australia’s (RBA) long series of rate cuts. TABCORP is a buy on dips to USD3.15, while Tatts Group is a buy under USD3.

Financials

Bank of Queensland (ASX: BOQ, OTC: BKQNF), which will report results for the first half of its fiscal 2013 on April 18, generated the best total return among Financials names at 31.7 percent.

The group was the second-best performer among the 11 How They Rate sectors with an average total return of 12.96 percent. All 15 companies in the group, which includes banks, insurers and Australian real estate investment trusts (A-REIT) posted a positive total return for the period.

Each of Australia’s Big Four Banks posted double-digit returns, led by National Australia Bank Ltd (ASX: NAB, OTC: NAUBF, ADR: NABZY) at 23.7 percent.

Commonwealth Bank of Australia (ASX: CBA, OTC: CBAUF, ADR: CMWAY), meanwhile, boosted its interim dividend by 19.7 percent. All three banks are holds at current levels.

Westfield Retail Trust (ASX: WRT, OTC: WTSRF) was tops among A-REITs with a 13.6 percent increase in its total dividend for 2012. The A-REIT also posted a 3.3 percent total return for the first quarter. Westfield Retail Trust is a buy under USD3.40.

A-REITs–which we profiled in a January 2013 In Focus feature–generally reported solid financial and operating results, as Commonwealth Property Office Fund (ASX: CPA, OTC: CWHPF) raised its interim dividend by 10.7 percent, Dexus Property Group (ASX: DXS, OTC: DXSPF) boosted by 8.2 percent, Goodman Group (ASX: GMG, OTC: GMGSF) raised by 7.8 percent and GPT Group (ASX: GPT, OTC: GPTGF) increased its payout 8.4 percent.

Mirvac Group (ASX: MGR, OTC: MRVGF), meanwhile lifted its payout by 5 percent, Westfield Group (ASX: WDC, OTC: WEFIF, ADR: WFGPY) by 2.3 percent.

Health Care

Conservative Holding Ramsay Health Care Ltd (ASX: RHC, OTC: RMSYF) paced the six Health Care companies in How They Rate with a 19.8 percent first-quarter total return; management complemented that performance with a 13.7 percent interim dividend increase.

Ramsay’s brownfield-focused growth strategy continues to pay dividends, as management’s expertise in refurbishing, updating and turning around underperforming health care properties now spreads throughout Greater Asia.

Also positioned to benefit from an aging Australian population, Ramsay is poised for long-term, steady growth.

Ramsay Health Care is a buy under USD30.

Fellow Conservative Holding CSL Ltd (ASX: CSL, OTC: CMXHF, ADR: CMXHY) was up 11.1 percent and raised its interim dividend a sector-leading 35.2 percent.

CSL, which has generated a total return in excess of 100 percent since our initial October 2011 recommendation, is a hold.

Health insurance company NIB Holdings Ltd (ASX: NHF, OTC: None) also turned in a double-digit double, boosting its interim dividend 17.6 percent and posting a 15.7 percent first-quarter total return.

The company continues to benefit from rising private health insurance rolls in Australia, despite the imposition of a “means test” on the government-sponsored 30 percent health insurance rebate.

NIB Holdings is a buy on dips to USD2.15.

Cochlear Ltd (ASX: COH, OTC: CHEOF, ADR: CHEOY), which is facing stepped-up competition for market share by a lower-cost competitor in Mainland China, raised its interim dividend by 4 percent.

But the stock generated a negative total return of 12.1 percent in the first quarter, as investors began to question its ability to hold onto its dominant position in the aftermath of a product recall and the introduction of a cheaper alternative in one of its key growth markets. Cochlear is now a hold.

Industrials

The Industrials section of How They Rate now numbers 18 as of this issue. We’ve moved former Oil & Gas denizen Boart Longyear Ltd (ASX: BLY, OTC: BOARF, ADR: BLGPY) into the group to better reflect its primary operating focus on contract drilling services for the mining industry.

Utah-based Boart is also distinguished as the biggest loser among its new peers, with a total loss of 31.1 percent for the first quarter. Management also slashed the final dividend for 2012 by 82.1 percent, bringing the full-year dividend decline to 28.8 percent.

Boart is struggling along with the junior miners that form an important part of its growth profile. But risks are largely priced into the stock, and management continues to strengthen the balance sheet.

Boart Longyear, which is yielding 6.3 percent as of this writing, is a buy for speculators under USD1.35 on the ASX using the symbol ASX and on the US OTC market using the symbol BOARF.

Boart Longyear also trades on the US OTC market as an ADR. Boart’s ADR, which is worth two ordinary, ASX-listed shares, is a buy under USD2.70.

Bradken Ltd (ASX: BKN, OTC: BRKNF) is a mining services company that’s more exposed to the less volatile production as opposed to the exploration aspect of the industry.

Management reported a 9 percent profit increase, as first-half cash flow surged from AUD10.7 million a year ago to AUD70.8 million, and boosted the interim dividend by 2.6 percent.

Investors, impressed by Bradken’s relatively stable revenue profile and attracted to what had been a beaten-down stock, carried the shares to a 22.5 percent total return for the first quarter.

Bradken–yielding 7.2 percent at current levels–is a buy under USD6.25.

Freight forwarding and logistics outfit Toll Holdings Ltd (ASX: TOL, OTC: THKUF, ADR: THKUY) posted solid if unspectacular financial and operating results for the first half of 2013, though management forecast better results in the second half of the year.

The company continues to leverage its market-leading position and strong cash flow to grow through the acquisition of less stable and/or smaller rivals. An enduring rebound for Australia’s retail sector would provide significant upside momentum.

Despite broader economic challenges, Toll posted an Industrials-best 33.2 percent total return during the first quarter. And management boosted the interim dividend by 8.2 percent.

Toll Holdings, which is currently yielding 4.5 percent, is a buy on the ASX using the symbol TOL and on the US OTC market using the symbol THKUF.

Toll Holdings also trades as an ADR on the US OTC market. Toll’s ADR, which is worth two ordinary, ASX-listed shares, is a buy under USD12.

Oil & Gas

Woodside Petroleum Ltd (ASX: WPL, OTC: WOPEF, ADR: WOPEY), which late this week got a huge share-price uplift from management’s decision to put off a final determination on the USD40 billion-plus Browse LNG project, posted a 7.8 percent total return for the first quarter.

That trailed Caltex Australia Ltd’s (ASX: CTX, OTC: CTXAF, ADR: CTXAY) 12.7 percent gain and Santos Ltd’s (ASX: STO, OTC: STOSF, ADR: SSLTY) 13.6 percent.

But petroleum refiner Caltex trimmed its final dividend by 17.8 percent on account of the closure of one the Kurnell refinery. And Santos’ final and full-year dividends were flat compared to a year ago.

But Woodside, spreading the benefits of the start-up of the Pluto LNG project, boosted its 2012 dividend by 18.2 percent. Management is also far along the process of acquiring the largest natural gas field in Israel, as it continues to add assets and boost production.

Woodside Petroleum is a buy under USD42. Santos, meanwhile, is a buy under USD13.50, while Caltex, which has enjoyed a significant run over the last year-plus, is a hold.

Technology

Codan Ltd (ASX: CDA, OTC: None), which metal detection devices and advanced radio equipment, posted the strongest first-quarter total return in the entire How They Rate coverage universe at 61.5 percent.

Management also boosted the interim dividend 50 percent after reporting a near tripling of first-half underlying profit and forecasting second-half results as strong as the first. In addition to growing its dividend at an impressive clip, Codan has cut its gearing ratio by 56 percent since fiscal 2012.

At these levels, however, Codan is a hold.

Redflex Holdings Ltd (ASX: RDF, OTC: RFLXF) is caught up in a corruption investigation in Chicago that has now carried over into “two other geographies” in the US, as an internal investigation revealed and management announced along with fiscal 2013 first-half results.

Redflex has not yet decided whether it will pay an interim dividend, though it’s looking pretty grim at this stage.

Chicago, which accounted for approximately 13 percent of fiscal 2012 revenue, will not allow Redflex to bid on impending contracts for new traffic light camera installations.

Fiscal 2013 first-half NPAT was below forecast at AUD3.6 million, revenue was down 7.2 percent and EBITDA was off by 25.8 percent. And the board hasn’t decided whether to pay an interim dividend.

It was not a good quarter for the stock, as Redflex generated a negative total return of 46.5 percent. Sell.

Telecommunications

Telecommunications, which includes just five companies, was the No. 3 performer among How They Rate groups in the first quarter with an average total return of 12.3 percent.

Amcom Telecommunications Ltd (ASX: AMM, OTC: ATMUF) led the way at 22.2 percent, as management boosted the interim dividend by 11.1 percent.

Amcom continues to post impressive operating results, and the integration of the L7 acquisition is beating expectations. The company is a leader in “cloud” computing services Down Under, and management has proven itself capable of growing the business organically and through acquisitions.

The stock has run a bit too far, however. Should Amcom pull back to USD1.30, buy it.

M2 Telecommunications Group Ltd (ASX: MTU, OTC: MTCZF) posted a 20.2 percent total return and lifted its interim dividend by 15.3 percent, which led AE Telecoms. The company is the subject of an April Sector Spotlight. M2 is a buy under USD5.25.

Utilities

Five of the seven members of the How They Rate Utilities group are members of the AE Portfolio. The average total return of 9.73 percent, led by Aggressive Holding Origin Energy Ltd’s (ASX: ORG, OTC: OGFGF, ADR: OGFGY) 17.1 percent, went a long way, but not enough, toward helping the AE Portfolio maintain pace with benchmark equity indexes.

Origin and Conservative Holding APA Group (ASX: APA, OTC: APAJF) were the only members of the group not to boost dividends during the recently concluded reporting period.

APA, however, following the acquisition of Hastings Diversified Utilities Fund and the required disposition, for AUD400 million, of the Moomba-to-Adelaide Pipeline System is adding assets that will support long-term growth. As of April 12 the stock is once again near its all-time high.

APA Group is a buy on any dip to USD5.50. We’ll hopefully have reason to lift our buy-under target when management declares its next dividend on or about June 19.

Conservative Holding AGL Energy Ltd’s (ASX: AGK, OTC: AGLNF, ADR: AGLNY) 6.9 percent boost was tops among the group, which generally pursues a policy of slow and steady when it comes to dividend growth. AGL is a buy under USD17.25.

Envestra Ltd (ASX: ENV, OTC: EVSRF), like APA and AGL an original member of the AE Portfolio, posted a total return of 15.8 percent for the first quarter, as management boosted the interim dividend by 3.4 percent. Now trading well above our buy-under target of USD0.85, Envestra is effectively a hold at these levels.

Funds

If there’s another positive point to be made about the performance of the AE Portfolio during the first quarter of 2013, it’s that our Holdings collectively beat all three of the four funds in the How They Rate coverage universe.

Aberdeen Asia-Pacific Income Fund (NYSE: FAX), the portfolio of which is concentrated in Australian government bonds and includes issues from other Asian nations, posted a gain of 1.9 percent. Aberdeen Asia-Pacific, also a member of the Conservative Holdings, is a buy under USD9.

iShares MSCI Australia Index Fund (NYSE: EWA), focused on large-cap Australian equities such as the Big Four banks, posted a total return of 7.6 percent to best the AE Portfolio. iShares MSCI Australia is a buy under USD23.

IQ Australia Small Cap ETF (NYSE: KROO), which includes among its portfolio Aggressive Holding GrainCorp Ltd (ASX: GNC, OTC: GRCLF), posted a total return of 3.4 percent. IQ Australia Small Cap is a buy under USD20.