We’re adding a new category to the How They Rate table this month, Funds, and four names to populate it.

One is a closed-end fund that invests in Australian and Asian debt securities, one is an exchange-traded fund (ETF) the objective of which is to reflect the US dollar price of the Australian dollar and two are ETFs that track the broader Australian market and small-capitalization stocks Down Under, respectively.

As Roger Conrad details in this month’s Portfolio Update, foreign capital is flowing into Australian bonds, particularly those issued by the federal government. Sovereign debt accounts for 45.3 percent of Aberdeen Asia-Pacific Income Fund’s (NYSE: FAX), with 34.2 percent of assets concentrated in Australia.

Like most closed-end funds with solid track records and solid yields, Aberdeen Asia-Pacific trades at a premium to its net asset value. The current level of about 3 percent is a bit above the long-term average but still presents solid value.

We prefer stocks. But for those who want a steady yield and currency play with little credit or interest rate risk, Aberdeen Asia-Pacific Income Fund, which is currently yielding 5.3 percent, is a solid buy up to USD9.

CurrencyShares Australian Dollar Trust (NYSE: FXA) is designed to track the price of the Australian dollar net of expenses, which are expected to be paid from interest earned on a deposit account denominated in Australian dollars. This ETF has an expense ratio of 0.40 percent.

Government debt comprises 49.13 percent of the ETF’s holdings, followed by cash (37.65 percent) and corporate debt (13.22 percent). The current yield is 2.9 percent. We’re commencing coverage of CurrencyShares Australian Dollar Trust with the ETF as a hold.

iShares MSCI Australia Index Fund (NYSE: EWA) includes most of the AE Portfolio among its approximately 70 holdings. Its top five holdings are BHP Billiton Ltd (ASX: BHP, NYSE: BHP), followed by Australia’s Big Four banks; these five account for about 47 percent of the ETF’s holdings.

Australia & New Zealand Banking Group Ltd (ASX: ANZ, OTC: ANEWF), our choice among the Big Four, is the ETF’s No. 3 holding. Rio Tinto Ltd (ASX: RIO, NYSE: RIO) is eighth.

Non-AE Portfolio companies among the top 10 include Woolworths Ltd (ASX: WOW, WOLWF), which discuss at length in this month’s In Focus feature, Wesfarmers Ltd (ASX: WES, OTC: WFAFF), Woodside Petroleum Ltd (ASX: WPL, OTC: WOPEF) and A-REIT Westfield Group Ltd (ASX: WDC, OTC: WEFIF).

iShares MSCI Australia Index Fund is a hold as well.

IQ Australia Small Cap ETF (NYSE: KROO) tracks the IQ Australian Small Cap Index. Its top 10 holdings include just one AE Portfolio Holding, GrainCorp Ltd (ASX: GNC, OTC: GRCLF). We begin coverage of this ETF with it rated a hold.

ETFs certainly make the process easier, at the cost of exposing you to weaker companies and their stocks as well as high-quality dividend-payers. It’s our job to separate the latter from the former and build a portfolio for the long term.

We’re not traders, so we’re not going to generate a lot of trading fees and costs. But if you’re looking for minimum-shot exposure to the Australian market these four are good places to start.

Dividend Watch List

Because Australian companies typically report official earnings and declare dividends only twice a year, changes–additions to and subtractions from–the Dividend Watch List will be rarer than, for example, the Dividend Watch List compiled for AE’s sister letter Canadian Edge.

Reporting season Down Under is well underway, however, which means we’re in the heat of dividend announcements too.

It’s important to note that Australian companies customarily maintain policies of paying out a specified percentage based on particular earnings metrics, whether that metric is statutory net profit after tax (NPAT), underlying NPAT or earnings before interest, taxation, depreciation and amortization (EBITDA).

What this means is that dividend rates will often vary more than they do for Canadian or US companies, which are almost universally pledged to maintaining dividend rates, often at the cost of tapping balance sheets in the absence of sufficient cash flow to cover obligations to shareholders.

This latter is fine in the short term, and it can be manageable in the longer term as well. But Australian firms are traditionally more debt-averse than their North American counterparts.

It’s important to note, too, that the CE Watch List is based on the monthly distribution scheme established during the income trust era, which, to the benefit of investors everywhere, persists even after the forced conversion to traditional corporations for many of these stocks.

Australia’s twice-yearly rhythm varies as well from the quarterly dividend arrangement to which most US companies adhere.

We’ll have a full analysis of the fate of dividends for the majority of the 109 individual companies tracked in the Australian Edge How They Rate coverage universe in the September issue.

With recent dividend reductions, changes to guidance or policies that suggest non-regular payment the following companies have declared their worthiness for inclusion on the Dividend Watch List.

Basic Materials

Aditya Birla Minerals Ltd’s (ASX: ABY, OTC: ABWAF) board approved and management declared a AUD0.05 dividend on May 30, finally getting back to a paying basis after “omitting” a mid-year payment. It appears the company pays an annual dividend, but policy remains “to seek to maximise cash returns to Shareholders whilst having regard to ensuring a sound financial structure for the Company and providing for value accretive development and exploration activities and targeted growth opportunities.” Because there’s no clarity on the payment interval this stock will probably be an emeritus member of the Dividend Watch List. It is, however, a speculative buy under USD0.50 for aggressive investors only.

Alumina Ltd (ASX: AWC, NYSE: AWC) didn’t declare an interim dividend when it reported 2012 first-half results on Aug. 16. Management had reduced its final dividend for 2011 by 25 percent, in step with guidance issued late in the year.

The company recorded a net loss of USD14.6 million, compared with a profit of USD67.7 million a year ago, although revenue from continuing operations was flat. Alumina received USD70.4 million in dividends and distributions from its joint venture with Alcoa (NYSE: AA), in line with the previous six-month period but down from USD170 million the year before.

Although the company has undrawn credit facilities to help it through what is an increasingly difficult operating environment for global aluminum companies, absence of any cash flow guidance and rising overall debt levels suggested a dividend cut was highly likely. Hold.

Aquarius Platinum Ltd (ASX: AQP, OTC: AQPBF) halted operations at its Everest mine, the second such move in recent weeks, as its partners in the Marikana mine in South Africa had previously mothballed the No. 4 shaft due to the continuing weakness for platinum-group metals (PGM) prices.

Marikana accounts for approximately 18 percent of Aquarius’s annual production. This comes after the company reported that fiscal 2012 third-quarter earnings slid 137 percent to a AUD9.4 million loss, as production declined 18 percent and prices for PGMs dove 14 percent. Cash costs, meanwhile, surged by 26 percent.

The company didn’t pay an interim dividend on its fiscal 2012 first-half results. Sell.

Arrium Ltd (ASX: ARI, OTC: OSTLF, ADR: OSTLY), formerly OneSteel Ltd, paid a AUD0.03 per share interim dividend, down 50 percent from the AUD0.06 it paid for the first half of fiscal 2011. Having committed full-bore to identifying itself as an iron ore miner, management and the board asked for and received from shareholders their approval to change to company name to Arrium.

The forecast is for “significant improvement” in fiscal 2012 second-half results, which will be revealed on Aug. 21, 2012. Buy under USD0.80.

BlueScope Steel Ltd (ASX: BSL, OTC: BLSFF) is forming a joint venture with Japan’s Nippon Steel Corp (Japan: 5401, OTC: NISTF) that will generate about AUD540 million for the company and help it solve its balance sheet issues. The amount is sufficient to cover its entire amount of outstanding debt.

BlueScope forecast that its Australian steel business would deliver positive earnings before interest, tax, depreciation and amortization (EBITDA) during fiscal 2013, due in part to extensive layoffs.

The company has projected a net loss of AUD1 billion for fiscal 2012 due to the restructuring of its Australian steelmaking business and impairment charges of about AUD310 million; it will report Aug. 20. Management had already “omitted” the interim dividend. Sell.

Independence Group NL (ASX: IGO, OTC: IPGDF) reduced its interim dividend by 50 percent, but its March quarter production report answered several questions about its ability to establish some consistency in its operations, as cash costs for the period were solid and production was 4 percent higher than forecast. Output from its Jaguar gold mine was 98 percent higher in March than in January and February, and costs were the lowest ever for the project.

A high payout ratio coupled with management’s expressed desire to diversify away from nickel through gold-asset acquisitions suggest a choice may have to be made between investing in growth and sustaining a dividend. Hold.

Panoramic Resources Ltd (ASX: PAN, OTC: PANRF) paid 50 percent less for its fiscal 2012 interim dividend than it did a year ago, as lower realized prices for nickel offset double-digit production growth. March quarter nickel production reached a company record, prompting management to again boost its full-year output guidance. Buy under USD1.00.

Western Areas NL (ASX: WSA, OTC: WNARF) cut its interim dividend 50 percent because of lower sales in the first half of fiscal 2012. Lower realized prices for its nickel offset higher production, though costs trends were positive and management reiterated full-year guidance.

March quarter production trends were solid, and sales hit a record. Concentrate sales for the second half are on track for a 25 percent gain over first-half levels.

Western Areas will remain on the Watch List until it reports final fiscal 2012 results, including dividend details. Buy under USD4.60.

Consumer Goods

Billabong International Ltd (ASX: BBG, OTC: BLLAF) already cut its interim distribution by 81 percent, which we said was likely an interim step on the way to zero. Following a management change, the company issued a new downward revision for forecast fiscal 2012 earnings, before interest, taxation, depreciation and amortization (EBITDA), from AUD157 million to AUD130 million to AUD135 million. New management also said it’s unlikely to pay a dividend for the second half of fiscal 2012 or the first half of fiscal 2013.

The company continues to sell productive assets to generate cash to pay down debt, but its ability to pay remaining liabilities will be impaired by the absence of the full cash flow from said assets. Prior management rejected a AUD3 per share cash buyout offer. Sell.

Goodman Fielder Ltd (ASX: GFF, OTC: GDFLF) didn’t pay an interim dividend nor will it pay a final dividend for fiscal 2012.

The company reported a net loss of AUD146.9 million for the year to Jun. 30, which included a significant writedown on its baking assets in Australia and New Zealand, compared with the previous year’s loss of AUD166.7 million.

Earnings before interest and tax (EBIT), before significant items, were AUD233.1 million, at the lower end of guidance of between AUD230 million to AUD245 million. It had already said it would take pretax charges of AUD267 million, as it wrote down the value of its baking and home ingredients businesses, as well as other restructuring costs.

Those who believe in the potential for a takeover of the company have something to hold onto. Hold.

Consumer Services

APN News & Media Holdings Ltd (ASX: APN, OTC: APNDF) cut its 2012 interim dividend to AUD0.015 from the AUD0.035 it paid a year ago.

APN reported a net loss of AUD314.9 million for the six months to Jun. 30, which included a AUD485 million writedown on its New Zealand assets. Revenue fell slightly to AUD409.4 million from AUD411.7 million a year earlier, in line with management’s prior guidance for a AUD3 million shortfall. Debt remains a concern. Sell.

David Jones Ltd (ASX: DJS, ADR: DJNSY) reported that fiscal 2012 third-quarter sales fell 2.9 percent to AUD399. 8 million, while like-for-like sales slid 3.1 percent. Management reaffirmed its guidance for a full-year decline for net profit after tax (NPAT) of 35 percent to 40 percent, as early fourth-quarter activity suggested a carry-through of this weak third-quarter performance.

DJs already slashed its interim dividend by 19 percent, and it appears another reduction may be in the offing as it continues to roll out a new sales strategy built around finally building out a world-class Internet presence.

First-half profit fell 20 percent to AUD85 million from AUD105.7 million a year ago, at the bottom end of company guidance but in broadly in line with market expectations. First-half sales fell 6.7 percent to AUD1.01 billion from AUD1.08 billion a year ago.

DJs, along with most of Australia’s retail sector, has seen earnings slide as cautious consumers have reined in their spending in the wake of concerns over the global and domestic economy. Consumers have also shifted their spending to the Internet to take advantage of the strong Australian dollar to buy from overseas websites. Hold.

Harvey Norman Holdings Ltd (ASX: HVN, OTC: None) trimmed its interim dividend by 16.7 percent, as fiscal 2012 first-half net profit after tax (NPAT) slid 2.1 percent on an 8.2 percent decline in sales. March quarter before-tax earnings slid 44 percent, while nine-month sales fell 25 percent.

The Australian Bureau of Statistics reported that April retail sales declined by 0.2 percent after 10 months of growth, offering little hope for this already struggling franchise. Sell.

JB Hi-Fi Ltd (ASX: JBH, OTC: JBHIF) reduced its final dividend to AUD0.16 per share from AUD0.29 a year ago. Total dividends for fiscal 2012 were AUD0.65 per share, down from AUD0.77 for fiscal 2011. We have more on JB in this month’s In Focus feature. Buy.

Myer Holdings Ltd (ASX: MYR, OTC: MYGSF) posted a fiscal 2012 third-quarter sales decline of 0.9 percent. The biggest worry was the 2.1 percent slide in like-for-like sales, as store open more than a year showed serious weakness. Management expressed a commitment to closing non-performing stores as it gathers itself to compete in a world rapidly shifting away from traditional to online stores.

A downward revision to full-year guidance from a prior forecast of up to a 10 percent decline to a new prediction of up to a 15 percent shortfall earn the stock a place on the Watch List. Hold.

Navitas Ltd (ASX: NVT) reduced its fiscal 2012 final dividend to AUD0.101 from AUD0.12 in fiscal 2011. Total dividends for fiscal 2012 were AUD0.195 per share, down from AUD0.207 per share in fiscal 2011. We have more on Navitas in this month’s In Focus feature. Buy.

Seven West Media Ltd (ASX: SWM, OTC: WANHF), Australia’s largest diversified media business, announced Apr. 24, 2012, that earnings before interest and taxation (EBIT) for the fiscal year ending Jun. 30, 2012, would be AUD460 million to AUD470 million, about AUD50 million lower than previously expected and below analysts’ consensus forecast of AUD517 million.

“Based on conditions now becoming evident in all segments (TV, Newspapers and Magazines), the previous expectations of the market strengthening in the final quarter are unlikely to be met,” Seven West said in a statement.

Shares slid from a AUD3.77 close on the Australian Securities Exchange (ASX) on Apr. 24 to AUD2.69 May 10, as investors priced in a significant dividend cut; the posted yield is now 16.7 percent. The company will report fiscal 2012 results on or about Aug. 24, 2012. Hold.

Southern Cross Media Group Ltd (ASX: SXL, OTC: SOUTF) management highlighted the fact that “like for like” revenue was off only 2.7 percent from the first half of fiscal 2012 compared to the prior corresponding period. Unequivocal good news can be found in the conclusion that cost-control efforts exceeded expectations; coupled with the cash saved from a 28.6 percent interim dividend reduction Southern Cross should be able to continue to ride out challenging advertising conditions. Buy under USD1.25.

Financials

QBE Insurance Ltd (ASX: QBE, OTC: QBEIF) reported first-half net profit was AUD760 million compared with AUD673 million a year ago. Management announced a dividend of AUD0.40 per share, down from AUD0.62 a year ago.

Management also cut its net insurance margin forecast to 12 percent or better from at least 13 percent forecast previously. Hold.

Westfield Group Ltd (ASX: WRT, OTC: WEFIF, ADR: WFGPY) boosted its interim distribution to AUD0.2475 per stapled security from AUD0.242 a year ago, returning to growth after it cut its full-year 2011 payout by 24 percent. Hold.

Industrials

GWA Group Ltd (ASX: GWA, OTC: GWAXF, ADR: GWAXY), which manufactures building fittings for homes and commercial buildings, didn’t cut its dividend. But fiscal 2012 sales revenue declined 6 percent to AUD602 million, trading earnings before interest and taxation (EBIT) slid 25 percent to AUD75.4 million, and statutory net profit after tax (NPAT) fell 37 percent to AUD39.7 million. Management maintained the full-year dividend at AUD0.18 per share, but its payout policy is under review “due to sustained poor trading conditions.”

GWA Group, which earns a “4” under the updated interpretation of the AE Safety Rating System, is now a buy under USD2.

Leighton Holdings Ltd (ASX: LEI, OTC: LGTHF) slashed its interim distribution from AUD0.59 per share to AUD0.20 per share.

The company reported 2012 first-half statutory net profit after tax (NPAT) of AUD114.6 million, at the low end of its AUD100 million to AUD150 million guidance. Management, however, maintained full-year NPAT guidance of AUD400 million to AUD450 million, which is a reduction from previous guidance for 2012 NPAT of AUD600 million to AUD650 million. Sell.

Toll Holdings Ltd (ASX: TOL, OTC: THKUF) also warrants a place on the List after chopping its previous guidance for fiscal 2012 underlying earnings before interest and taxation (EBIT) to AUD400 million to AUD420 million from a prior target of AUD450 million. Fiscal 2011 underlying EBIT was AUD436 million.

Australia’s largest trucking company and freight handler has a relatively strong balance sheet, and its operating performance remains sound. But external pressures in the form of a weakening Chinese economy and a still-recovering Japanese economy suggest an overabundance of caution is in order. Hold.

Oil & Gas

Caltex Australia Ltd (ASX: CTX, OTC: CTXAF) paid AUD0.45 per share in respect of 2011 results, down from AUD0.60 in 2010. The refiner’s unaudited March quarter profit showed a 10 percent decline. Hold.

Utilities

DUET Group (ASX: DUE, OTC: DUETF) announced in mid-2011 that it would reduce its payout by 10 percent to reduce debt. The company recently completed an equity offering that reduced net debt, but distribution coverage is still a concern.

The company announced a deal this week to internalize its management, which should reduce costs and increase dividend visibility. The stock is now a buy under USD2.

Spark Infrastructure Group (ASX: SKI, OTC: SFDPF) reduced its 2011 payout by 25.1 percent, but management forecast 5 percent distribution growth for 2012. Spark Infrastructure is a buy under USD1.40.

The ADR List

We continue to track the How They Rate coverage universe and beyond for Australia-based companies that afford US investors the convenience of ADR investing, either on their initiative or via the effort of an interested financial institution.

Here again is our primer on Australian stocks, US OTC symbols and ADRs.

The great majority of the companies under How They Rate coverage have US symbols, many because they actively seek to raise capital here on their own accord. That means they comply, to varying degrees, with US Securities and Exchange Commission filing requirements for foreign companies and with US accounting principles. Others trade here because a sponsoring institution has effectively created a secondary market for the shares, without the underlying company’s active participation.

Shares traded on US OTC markets bearing a final “F” in their five-letter symbols are basically home-listed shares trading in a market created by and for US institutions. Individuals can buy and sell here, too. Prices basically reflect ASX prices and also reflect changes in the relationship between the US dollar and the Australian dollar. One “F” share represents one ASX-listed share. The dividend you receive in respect of an “F” share is the dividend paid in respect of the ASX-listed share, adjusted for currency effects.

An ADR is a certificate that represents stock of a foreign company. ADRs are listed on US stock exchanges or the OTC Bulletin Board or Pink Sheets. Those that trade OTC have five-letter symbols ending with the letter “Y.” All transactions, including dividend payments, are conducted in US dollars.

One ADR certificate may represent one or more shares of the foreign stock; it can also represent a fraction of a share. For example, one Telstra Corp Ltd (ASX: TLS, OTC: TTRAF, ADR: TLSYY) ADR, which trades under the symbol TLSYY, is worth five ordinary shares that trade on the Australian Securities Exchange under the symbol TLS. Australia & New Zealand Banking Group Ltd’s (ASX: ANZ, OTC: ANEWF, ADR: ANZBY) ADR, ANZBY, is worth one Australia-listed ANZ share.

Because many ADRs don’t have a one-to-one ratio between the depositary receipts and the shares of stock, financial ratios are often not included in stock listings. Data in Australian Edge Portfolio tables and How They Rate is derived based on Australian Securities Exchange symbols so is as complete as you’ll find anywhere.

Foreign companies themselves often “sponsor” the creation of their own ADRs. These are called “sponsored ADRs.” There are three levels of sponsorship.

A Level I sponsored ADR is created by a company because it wants to extend the market for its securities to the US. It does not, however, want to register with the Securities and Exchange Commission (SEC) or conform to generally accepted accounting principles (GAAP). Level I ADRs trade on the OTC Bulletin Board or Pink Sheets trading systems, usually but not exclusively by institutional investors. Australia & New Zealand Banking Group’s is a Level I ADR.

Level II and Level III sponsored ADRs must be registered with the SEC, and financial statements must be reconciled to generally accepted accounting principles. A Level II ADR requires partial compliance with GAAP, while a Level III ADR requires complete compliance. A Level III sponsorship is require if the ADR is a primary offering and is used to raise capital for the company. Only Level II and Level III sponsored ADRs can be listed on the New York Stock Exchange (NYSE), the American Stock Exchange or Nasdaq. Telstra Corp sponsors a Level III ADR in the US, meaning it’s actively seeking to raise capital here.

An unsponsored ADR is created by a US investment bank or brokerage that buys ordinary shares on the underlying company’s home market then deposits them in a local custodian bank. This depositary bank then issues shares that represent an interest in the stocks and handles most of the transactions with American investors, serving both as transfer agent and registrar for the ADR.

The shares of the foreign stock held in the custodian bank are called “American Depositary Shares,” although this term is sometimes used as a synonym for “American Depositary Receipts.” Unsponsored ADRs can’t be listed on the major American stock exchanges because they aren’t registered with the SEC and lack other necessary qualifications.

The price of an ADR is determined by supply and demand but will generally track the price of the underlying ordinary share. When dividends are paid, the custodian bank receives it and withholds any foreign taxes, exchanges it for US dollars and then sends it to the depositary bank, which then sends it to the investors.

The US depositary bank handles most of the interaction with US investors, including rights offerings, stock splits and stock dividends. Sponsored ADR investors may receive communications, including financial statements, directly from the company.

Here is a list of companies in the How They Rate coverage universe that have an ADR listing in the US, along with the number of ordinary ASX-listed shares the ADR represents.

Basic Materials          

• Alumina Ltd (ASX: AWC, NYSE: AWC)–One ADR is worth four ordinary shares.
• Aquarius Platinum Ltd (ASX: AQP, OTC: AQPBF, ADR: AQPTY)–One ADR is worth two ordinary shares.
• Arrium Ltd (ASX: ARI, OTC: OSTLF, ADR: OSTLY)–One ADR is worth 20 ordinary shares.
• BHP Billiton Ltd (ASX: BHP, NYSE: BHP)–One NYSE-listed ADR is worth two ordinary shares.
• BlueScope Steel Ltd (ASX: BSL, OTC: BLSFF, ADR: BLSFY)–One ADR is worth five ordinary shares.
• Fortescue Metals Group Ltd (ASX: FMG, OTC: FSUMF, ADR: FSUMY)–One ADR is worth five ordinary shares.
• Iluka Resources Ltd (ASX: ILU, OTC: ILKAF, ADR: ILKAY)–One ADR is worth five ordinary shares.
• Kingsgate Consolidated Ltd (ASX: KCN, OTC: KSKGF, ADR: KSKGY)–One ADR is worth one ordinary share.
• Newcrest Mining Ltd (ASX: NCM, OTC: NCMGF, ADR: NCMGY)–One ADR is worth one ordinary share.
• Oz Minerals Ltd (ASX: OZL, OTC: OZMLF, ADR: OZMLY)–One ADR is worth 0.5 ordinary shares.
• Rio Tinto Ltd (ASX: RIO, NYSE: RIO)–One ADR is worth one ordinary share.

Consumer Goods

• Billabong International Ltd (ASX: BBG, OTC: BLLAF, ADR: BLLAY)–One ADR is worth two ordinary shares.
• Goodman Fielder Ltd (ASX: GFF, OTC: GDFLF, ADR: GDFLY)–One ADR is worth 10 ordinary shares.

Consumer Services

• Crown Ltd (ASX: CWN, OTC: CWLDF, ADR: CWLDY)–One ADR is worth two ordinary shares.
• David Jones Ltd (ASX: DJS, ADR: DJNSY)–One ADR is worth one ordinary share.
• Metcash Ltd (ASX: MTS, OTC: MCSHF, ADR: MHTLY)–One ADR is worth six ordinary shares.
• TABCORP Holdings Ltd (ASX: TAH, OTC: TABCF, ADR: TACBY)–One ADR is worth two ordinary shares.
• Wesfarmers Ltd (ASX: WES, OTC: WFAFF, ADR: WFAFY)–One ADR is worth 0.5 ordinary share.

Financials

• Australia & New Zealand Banking Group Ltd (ASX: ANZ, OTC: ANEWF, ADR: ANZBY)–One ADR is worth one ordinary share.
• Commonwealth Bank of Australia Ltd (ASX: CBA, OTC: CBAUF, ADR: CMWAY)–One ADR is worth one ordinary share.
• National Australia Bank Ltd (ASX: NAB, OTC: NAUBF, ADR: NABZY)–One ADR is worth one ordinary share.
• QBE Insurance Ltd (ASX: QBE, OTC: QBEIF, ADR: QBIEY)–One ADR is worth one ordinary share.
• Westfield Group Ltd (ASX: WDC, OTC: WEFIF, ADR: WFGPY)–One ADR is worth two ordinary shares.
• Westpac Banking Corp Ltd (ASX: WBC, NYSE: WBK)–One ADR is worth five ordinary shares.

Health Care

• Cochlear Ltd (ASX: COH, OTC: CHEOF, ADR: CHEOY)–One ADR is worth 0.5 ordinary share.
• CSL Ltd (ASX: CSL, OTC: CMXHF, ADR: CMXHY)–One ADR is worth 0.5 ordinary share.
• Sonic Healthcare Ltd (ASX: SHL, OTC: SKHCF, ADR: SKHCY)–One ADR is worth one ordinary share.

Industrials

• Amcor Ltd (ASX: AMC, OTC: AMCRF, ADR: AMCRY)–One ADR is worth four ordinary shares.
• Boral Ltd (ASX: BLD, OTC: BOALF, ADR: BOALY)–One ADR is worth four ordinary shares.
• GWA Group Ltd (ASX: GWA, OTC: GWAXF, ADR: GWAXY)–One ADR is worth four ordinary shares.
• Toll Holdings Ltd (ASX: TOL, OTC: THKUF, ADR: THKUY)–One ADR is worth two ordinary shares.

Oil & Gas

• Beach Energy Ltd (ASX: BPT, OTC: BEPTF, ADR: BCHEY)–One ADR is worth 20 ordinary shares.
• Boart Longyear Ltd (ASX: BLY, OTC: BOARF, ADR: BLGPY)–One ADR is worth two ordinary shares.
• Caltex Australia Ltd (ASX: CTX, OTC: CTXAF, ADR: CTXAY)–One ADR is worth two ordinary shares.
• Oil Search Ltd (ASX: OSH, OTC: OISHF, ADR: OISHY)–One ADR is worth 10 ordinary shares.
• Santos Ltd (ASX: STO, OTC: STOSF, ADR: SSLTY)–One ADR is worth one ordinary share.
• Woodside Petroleum Ltd (ASX: WPL, OTC: WOPEF, ADR: WOPEY)–One ADR is worth one ordinary share.
• WorleyParsons Ltd (ASX: WOR, OTC: WYGPF, ADR: WYGPY)–One ADR represents one ordinary share.

Technology

• Redflex Holdings Ltd (ASX: RDF, OTC: RFLXF, ADR: RFLXY)–One ADR is worth eight ordinary shares.

Telecommunications  

• Singapore Telecommunications Ltd (Singapore: ST, ASX: SGT, OTC: SNGNF, ADR: SGAPY)–One ADR is worth 10 ordinary shares.
• Telecom Corp of New Zealand Ltd (ASX: TEL, NYSE: NZT)–One ADR is worth five ordinary shares.
• Telstra Corp Ltd (ASX: TLS, OTC: TTRAF, ADR: TLSYY)–One ADR is worth five ordinary shares.

Utilities

• AGL Energy Ltd (ASX: AGK, OTC: AGLNF, ADR: AGLNY)–One ADR is worth one ordinary share.
• Origin Energy Ltd (ASX: ORG, OTC: OGFGF, ADR: OGFGY)–One ADR is worth one ordinary share.