annual report 2012 - odin fund management · i wish you a successful 2013 and hope you ... i 4 i...

Annual Report 2012

February 2013

ODIN Equity Mutual Funds

ODIN FUND MANAGEMENT ANNUAL REPORT 2012I 2 I

The Company is a wholly owned subsidiary of SpareBank 1 Gruppen AS

Company registration number: SpareBank 1 Gruppen AS 975 966 372ODIN Forvaltning AS 957 486 657ODIN Fonder, branch to ODIN Forvaltning AS, Norway 516402-8044ODIN Rahastot 1628289-0

ODIN Fonder Stureplan 13, S-111 45 Stockholm. Box 238, S-101 24 Stockholm, SwedenTelephone: +46 8 407 14 00 Fax: +46 8 407 14 66 E-mail: [email protected] www.odinfonder.se

ODIN Fund Management AS Fjordalléen 16, N-0250 Oslo, P.O. Box 1771 Vika, N-0122 Oslo, NorwayTelephone: +47 24 00 48 00 Fax: +47 24 00 48 01E-mail: [email protected] www.odinfond.no

ODIN Rahastot Mannerheimvägen 14 A, FIN-00100 Helsinki, FinlandTelephone: +358 (0) 9 4735 5100Fax: +358 (0) 9 4735 5101E-mail: [email protected] www.odin.fi

3 Comments from CEO 4-7 Market Comments 8-9 Why responsible investments are important 10-12 This is how we invest 13-14 Report from the Board of Directors for 2012 15 Notes 16-20 ODIN Norden comments and annual report 21-24 ODIN Finland comments and annual report 25-28 ODIN Norge comments and annual report 29-32 ODIN Sverige comments and annual report 33-37 ODIN Europa comments and annual report 38-42 ODIN Europa SMB comments and annual report 43-47 ODIN Global comments and annual report 48-52 ODIN Global SMB comments and annual report 53-57 ODIN Emerging Markets comments and annual report 58-61 ODIN Maritim comments and annual report 62-65 ODIN Offshore comments and annual report 66-69 ODIN Eiendom I comments and annual report 70 Auditor’s Report for 2012 71 Notice of election meeting

Contents

The English text in this annual report is a direct translationof the original Norwegian text. All figures are published in NOK.

ODIN FUND MANAGEMENT ANNUAL REPORT 2012 I 3 I

When I took on the task of leading ODIN in the middle of 2012, I was excited - as one often is when starting a new job in a new place and with new colleagues. It did not take long before I had a good feeling – a feeling of coming home. You’ve chosen the right fund manager, Rune, I said to myself at that time. Let me explain why.

My experience of managing organisations such as Fol-ketrygdfondet, the Rasmussen Group and Norfund (The Norwegian Investment Fund for Developing Countries) has made me aware that managing other people’s money requires a particularly high level of responsibility, profes-sionalism and compliance. And these are all qualities that I have found in abundance here at ODIN.

ODIN’s management organisation is in a phase in which we are reaping the fruits of processes that have been on-going for some time. 2012 was a year in which our ma-nagement on the whole delivered very good results. That shows some of the strength that now lies in our carefully considered investment process and the value-oriented philosophy that underpins the investment decisions we make on behalf of our unit holders.

Not everyone understands the great difference between being a long-term investor and a short-term trader in the financial market. Although we buy and sell the same secu-rities, there is in reality a huge difference between these two approaches to investments. At ODIN, we invest for the long term. We do not pretend that we can forecast the short-term movements in the financial market. However, our investment process makes us highly capable of diffe-rentiating good companies from bad ones. As investors, we believe that our unit holders will receive the best re-turn over time if we invest in those companies that are cleverest at creating value. In the long term, it is the com-panies’ ability to create value that is crucial to the return our unit holders achieve.

I think the following quote by Börje Ekholm, the CEO of Investor AB, an important Swedish investment company,

also fits ODIN’s approach: “We don’t trade shares. We own great companies. We don’t focus on beating the market in the short term. We want our investments to beat their competitors in the long term.”

Another aspect of ODIN’s long-term view is that we are not just passing through the shareholder lists, we play an active role as an owner. We use our ownership to work sys-tematically to steer the companies in what we believe to be the right direction. In this work, we focus not only on shareholder value but also on the environment and social factors. You can read more about this, among other is-sues, in this annual report.

Bearing in mind that we spend a lot of time and effort on finding the cleverest companies and following them up closely, it is also natural for our funds to have concentra-ted portfolios. We do not spread the money we have been asked to manage widely around the market and hope for the best. We make active choices based on what we are convinced are the cleverest companies and follow these companies up to help them succeed. This means that each choice of investment has a considerable effect on us.

We want to tell you about these choices and this work. Through our in-depth fund reports and market com-ments, you have a chance to see the world and financial markets from our perspective. You can do so not only in this annual report but also in our electronic newsletters, which you can subscribe to on our website.

As mentioned, I’m very comfortable with ODIN’s perspec-tive on the world and look forward to continue leading this good team of highly competent employees. So I also feel I’m on solid ground when I state that your choice of ODIN as your fund manager is a good one.

I wish you a successful 2013 and hope you enjoy reading this report!

Comments from the CEO

Rune Selmar

«You’ve chosen the right fund manager»


You could have made a lot of money if you had known with certainty this time last year that the Euro would hold its ground and that none of the Eurozone coun-tries would default on their national debt. The broad European stock market delivered 11,1 per cent, and the bombed-out Greek stock market delivered 26,3 per cent (numbers in NOK). Don’t we all wish we had invested everything there at this time last year…

In all modesty, we would of course like to mention that ODIN also delivered solid returns in 2012. 10 out 12 eq-uity funds and all balanced funds beat their benchmarks. Our actively managed bond fund had a fantastic year, with returns exceeding 15 per cent.

We have been through a rough period the last few years, and we have worked hard to retain your trust in our ex-pertise. Consequently it is especially satisfying to note the good results in 2012. Naturally, both you as our cli-ent and we as portfolio managers have a longer perspec-tive than a year, but satisfying results from the job done so far strengthens our belief that we are heading in the right direction.

At the same time, our impression is that many are sur-prised to learn how well 2012 actually turned out. This is understandable. If you have been following the news, both in financial and other media, you will have had plenty of reason to worry. In addition to a lot of political turbulence, with important election campaigns and re-gime shifts, there were the ongoing Euro crisis, quarrels

regarding budgetary and tax reforms in the USA, natu-ral disasters such as Hurricane Sandy, accidents like the Concordia shipwreck, the civil war in Syria, the nuclear programme in Iran, the increased conflict in the South China Sea and rocket launches in North Korea.

The nature and function of the media is to put the spot-light on challenges. But consequently, the media’s agenda is not always a representative reflection of the prevailing mood in the financial markets, as 2012 demonstrates.

This will make for an interesting 2013…The Speaker said: “What has happened, will happen again, and what has been done will be done again, and there is nothing new under the sun.” (Ecclesiastes 1:9)

Many of you who take a brief look at the list below may think just that – there is not a lot that is new here. But those who take a look underneath the surface will dis-cover that the world is actually moving forward, perhaps not always at a very high speed but there is nonetheless progress.

And we believe that it is exactly the progress in the main topics on the agenda which will make 2013 a rather in-teresting year.

The following overview gives us some key points to fol-low in the year ahead:

Market Comments

A good year

Many people are surprised when they see what a good year 2012 actually was, both for the market in general but also for the ODIN funds in particular.

ODIN has based its market comments on the views of sources that are considered to be reliable. However, ODIN cannot guarantee that the information provided by its sources is either accurate or complete. Statements in this annual report reflect ODIN’s views on the market at the time when the annual report was being prepared.

Leading central banks such as the US Federal Re-serve, Bank of Japan, Bank of England and ECB are doing what they can to keep interest rates low and their economies running, among other things by printing money – a lot of money.

When inflation and very low interest rates com-bine in negative expected real rate of return on long-term government securities, people and insti-tutions with large fortunes have to seek a return elsewhere. Many have invested in corporate bonds and this market is currently at its busiest level ever. Gold has been another alternative and has set new price records over the past few years.

However, for a long-term investor, the current price levels for bonds and gold do not provide any reason to expect as fantastic developments in the future. More and more investors will look to the stock market to find investment opportunities, and this will lead to share prices rising.

The large central banks’ eagerness to print money devalues their respective currencies. This benefits the country’s export industries but is correspond-ingly unfavourable to foreign companies that want to sell goods to the country’s inhabitants.

This creates major difficulties for emerging econo-mies that obtain a lot of their revenues from ex-ports to rich countries. A currency conflict that comes to a head between rich countries and the emerging economies may have huge consequences for international trade in the short term and lead to a lot of turbulence in the financial markets.

In longer perspective it shouldn’t be any conflicts for there to be growth in emerging economies such as Brazil, India and China on the one hand and in the USA, Japan and Europe on the other. By trade, everyone can become richer. But the road to a more harmonious balance will probably be a bumpy one.

Despite a lot of concern about China’s lower growth rate, the year ended with positive figures for the manufacturing industry and the purchasing man-agers’ confidence in the future was at the same high level as that measured in November. This strength-ens our faith in a controlled slow down of China’s growth.

Changing the basis for its economic growth from mainly investments towards more emphasis on do-mestic consumption has been a strategic goal for China. The country also sorely needs reform in a number of other areas in order to overcome struc-tural problems that are impeding growth.

President Xi is an enigmatic figure and several peo-ple have questioned the eagerness to introduce reforms of the other members of the country’s top leadership – primarily in relation to political reforms. In the economic area, the modernisation will probably continue as before, with particular emphasis on reforming towns and achieving more sustainable urbanisation.

Not only China but all the four large emerging economies have faced challenges lately. However, unlike China, which wants to turn more towards domestic consumption, Brazil and India in par-ticular need more investments to maintain sound growth in their economies. But this is exactly what they are finding it difficult to do.

The reduction in assistance from rich export mar-kets has helped to push the structural challenges faced by the BRIC countries up to the surface. Key issues for Brazil, Russia, India and China are cor-ruption, suffocating bureaucracy, unpredictable political protectionism and other risk factors that frighten off both foreign business players and fi-nancial investors.

The BRIC countries are key growth engines in the global economy and many people are waiting in great suspense to see how they will handle these challenges.

Low interest-rates complicates the hunt for returns World War III to be fought using currencies?

Broken BRICsChina’s route from factory to market place

Market Comments

Market Comments

Despite massive media coverage of the fiscal cliff and debt ceiling crises in the USA, these are not as dangerous as one could believe. Both are crises that have been inflicted on the USA by politicians – and are necessary mechanisms to force a compromise in a deadlocked situation. A permanent solution to the USA’s public economy problem of too low incomes compared to expenses requires extensive budgetary and/or tax changes. The challenge lies in the fact that this must be tackled during a period of high unemployment and great social differences.

The way in which the authorities choose to save money is therefore just as important as the amount they save. This is important for us too, since the US market is important to many of the companies in which we own shares.

A permanent revitalisation of the USA’s middle class, as President Obama and others want to see, will probably be very beneficial to the global econ-omy in time.

The rumours of the euro’s death are exaggerated. In fact, the risk of the euro collapsing is less now than it has been for quite some time. At the end of 2012, European politicians even managed to agree on a common banking supervisory authority, an important step in the direction of a new and much more institutionally robust eurozone. The hardest hit countries in Europe have also shown a willing-ness to tighten their spending and introduce re-forms.These developments show clearly how crises can function constructively as change mechanisms in political processes, and progress in the reform work is beneficial to long-term exposure to Europe.

A lot of work remains but, if its members can man-age to implement all the necessary structural re-forms, the eurozone may emerge from this crisis as the most dynamic of all the western economies. Europe is hurting but is actually starting to get a grip.

Looking at the global banking industry in detail currently appears to be like taking a trip around the haunted house at a fairground, and in 2012 several skeletons fell out of the cupboard. The foremost of these was the so-called Libor scandal, in which around 20 banks are being investigated due to al-legations that they manipulated this important benchmark interest rate. The authorities are intro-ducing a huge pile of new regulations, in which the global Basel III regulations for capital reserves and liquidity are the most important.

The sorting out and regulation of this key sector has been high on the agenda ever since the finan-cial crisis in 2008 and will probably be an impor-tant topic for quite some time. The trip around the haunted house is not over yet and the regulation work will take time.

In November 2012, the International Energy Agency (IEA) published its annual World Energy Outlook analysis. One of the surprising news in the analysis was the IEA’s prediction that the USA will pull ahead of Saudi Arabia and Russia to become the world’s biggest oil producer in 2017. The IEA also predicts that the USA will be self-sufficient in energy in 2030 as a result of the ongoing revolu-tion in the extraction of shale gas and shale oil.

This may lead to epoch-making changes in the commodity markets and energy transport sector as well as in global politics. The transport routes for gas and oil will change, gas will take over from coal in several places, OPEC’s influence will weaken and the price volatility in the oil and gas markets may increase.

The size of these changes means that the market will spend a lot of time and effort in future in order to get a hold on this.

The motor of US spending A glimpse of a new, dynamic eurozone

The shale revolutionSorting out the banking industry


Our recommendationFew people predicted a good 2012, while many feared the worst. This is an important explanation for why the return was so good: the prices were low to start with because a posi-tive outcome was uncertain. This example illustrates how dif-ficult it is to forecast short-term movements in the financial markets.

When trying to forecast the future, the simplest solution is often the best. In his book entitled The Signal and the Noise: Why So Many Predictions Fail – but Some Don’t, statistician Nate Silver analyses what characterises good and bad fore-casts. Silver became world-famous last autumn because of his accurate predictions about the US presidential election, and the book was published shortly afterwards.

One reason for the failings of many economic forecasts is that economists have a tendency to bury themselves in the enor-mous amounts of data constantly being produced by the fi-nancial markets, according to Silver. They often end up finding correlations and patterns that are in practice random and not predictable at all. They misinterpret noise as signals, he claims.Instead of digging through mountains of data, Silver propos-es that a better approach is to look at the foundations of the phenomenon being analyzed, take the average of several inde-pendent forecasts and reduce the complexity of the forecast as much as possible. Apparently, financial services professionals can learn a lot from weather forecasters in this regard. They have actually become quite good at predicting the weather and

one important reason for this is that weather forecasters sys-tematically learn from their mistakes and adjust their models subsequently. Another important reason is that weather fore-casters know their limitations and do not predict the weather for much more than one week into the future.

Unlike weather forecasts, in the financial markets it is worth noting that the likelihood of a prediction being correct actually increases in proportion to the time horizon. Where a weath-er forecast should be short-term, a stock-market prediction should thus be long-term and span cycles and fluctuations in the short term in order to be credible and useful.

In the short term, it is impossible to forecast the stock mar-ket’s movements with any useful degree of certainty, but in the long term it behaves quite predictably: the longer our time horizon, the more likely it is that we will achieve a good re-turn. We have no guarantee of this, but we do have probability comfortably on our side, supported by fundamental economic factors and long historical experience.

There are many indications that 2013 may be a good year for equity markets. However, we do not advise anyone to base their investments on such short-term expectations. On the other hand, we do advise everyone to have a significant share of long-term share investments in their portfolio – including in 2013.

Market Comments

Despite the shale revolution and a weak global economy, we are currently in a trend with a high level of activity in the upstream oil and gas sector. The demand for oil and gas is increasing while ex-isting reserves are shrinking rapidly. To meet de-mand, we must find and develop more and more new reserves worldwide.

These are long-term processes that require a lot of resources and are the reason for the oil companies’ investments in the exploration for and develop-ment of new fields being at a historically high level both in Norway and worldwide.

According to Barclays Bank’s annual forecast re-garding global investments in exploration and de-velopment in 2013, the strongest growth will prob-ably take place in Latin America, South East Asia/Australia and the Middle East, but almost all areas will probably experience some increase in activity. This means, among other things, strong demand for oil service companies.

“It’s difficult to predict, especially the future,” said Storm P, a famous Danish writer. But, when try-ing to do so, the simplest is often the best. Unlike weather forecasts, the likelihood of a stock market prediction coming true increases in proportion to the time horizon.

A weather forecast should therefore be short term, while a stock market prediction should be long term and cover short-term cycles and fluctuations.

In the short term, the market’s fluctuations are namely almost impossible to predict with any de-gree of certainty. So we do not advise anyone to base their investments on short-term expecta-tions. However, in the long term the stock market is more predictable. The longer a time horizon you have, the more likely it is that you will achieve a good return. We therefore recommend that you include a sizeable percentage of long-term equity investments in your portfolio in 2013.

Jarle Sjo, CIO

Take a long-term view – don’t forget equitiesRecord-high oil and gas investments


Even hardened finance people have gradually come to realise the positive effect on their reputation of complying with established principles for responsible investment. However, responsible invest-ments can give us fund managers much more than just an attrac-tive halo.

As active stock pickers, it is our experience at ODIN that working on responsible investments also gives us greater insight, especially into how to protect ourselves against downside risk.

This is valuable because, in order to achieve good results as a portfolio manager, it is at least as important to avoid making large wrong investments as it is to find big win-ners. Many years of alternating crises in the financial markets have made protection against so-called down-side risk quite an important topic for most investors.

More than just customer care For many of our customers, it is a prerequisite that ODIN must invest responsibly as regards the environment, social consequences and proper corporate governance of the listed companies. Such customer demands have made responsible investments, including the signing of the UN Principles for Responsible Investment, into a hygiene factor for serious management environments. ODIN has also signed the UN Principles for Responsible Investment.

But for us this is about more than just reputation build-ing. We have worked for a long time to integrate envi-ronmental issues, social conditions and proper corporate governance into our investment process and day-to-day portfolio management as key assessment criteria. One important reason for this is that the questions which must be asked when these criteria are to be assessed re-veal information about and insight into such things as the operational risk in the companies in which we own or are considering buying shares.

Why responsible investments are important

ESG = Environmental, Social & Governance

Follows from our philosophyOur approach to responsible investments is linked to our fundamental investment philosophy. We are value-oriented, active stock pickers who conduct thorough analyses of all potential investments. We manage con-centrated fund portfolios with relatively few companies and have a long-term perspective for each individual in-vestment.

This means we have strong incentives and good opportu-nities to know and understand the fundamental value-creation and risk drivers in each company and to play an active role in the corporate governance of our portfolio companies.

Thorough documentationFor those companies that pass our test, we will have ob-tained and processed information on their effect on the environment, social conditions and proper corporate governance. This information is updated continuously for companies included in the portfolio.

Because the quality of data and analyses is crucial to the effective integration of responsible investments, we have among other things chosen to hire Hermes Equity Ownership Services, a world-leading agency, to assist us. Apart from the reports we receive from Hermes, we also obtain a lot of information ourselves, including through in-depth talks with key persons in our portfolio compa-nies.


ESG = Environmental, Social & Governance

Not everything should be ownedAlthough we place most emphasis on being an active and constructive investor in the companies in which we own shares, there are some companies that we do not want to invest in, either because of what the company does or because of the way that it does it. As an example of the former, ODIN will not invest in companies that obtain a significant share (>5 per cent) of their revenue from the manufacture and sale of controversial weapons (such as nuclear weapons, landmines, cluster bombs and chemi-cal or biological weapons).ODIN also refuses to invest in companies which clearly contravene laws, rules or international treaties or con-ventions - in accordance with the principles stated in the UN Global Compact.

Cooperation and promotionIn addition to our own choices of investments and in-dependent conduct as an owner, we also place emphasis on cooperating constructively with other investors in or-der to influence companies in a positive direction. Our memberships of Norway’s Owner Forum, Sweden’s Sus-tainable Investment Forum and Finland’s Sustainable Investment Forum are examples of this.

We are also aware of our responsibility for keeping these issues high on the agenda in future and actively try to improve our own and other parties’ ability to act as re-sponsible owners.

Relevant issues from our portfoliosOur analyses and data received from Hermes Equity Ownership Services have revealed four issues in ODIN portfolio companies which are considered to be especially worthy to comment. The recommendations from Hermes and our own assessment indicate that it is possible and likely that we can influence these companies in a positive direction through our ownership. We will therefore prioritise following up these issues in our contact with the companies:

Halliburton and Transocean Ltd – the experience gained from the accident and oil spills from the Deepwater Horizon rig in the Gulf of Mexico has raised serious questions about the companies’ handling of environmental risks and it is important that they actively address this issue.

Hyundai Motor Co – despite improvements in the company’s relationships with its permanent employees, there is still reason to monitor the company’s relationships with its temporary employees internationally and these em-ployees’ working conditions. The company’s management has been constructive and active in the dialogue on these issues.

Syngenta AG – it is disappointing and rather worrying that the company has not so far taken part constructively in the important international debate on gene-modified food, and is thus allowing the counterarguments to prevail. Combined with an aggressive sales practice which also gives rise to opposition, this may weaken the market basis for the company’s products over time and have serious effects on the world’s access to food. The company is willing to listen to ideas on this topic and we will help to keep the issue high on the agenda.

I 10 I ODIN FUND MANAGEMENT ANNUAL REPORT 2012

ODIN is a selective asset manager. We believe that the best result over time is achieved when an experienced and close-knit team of managers creates concentrated portfolios through a thorough investment process.

All ODIN funds are actively managed, which means that we deliberately choose which individual investments we want to include in our various funds. This also means we are an active owner in the companies in which we invest, in order to protect our unit holders’ interests in the best way possible.

There are three fundamental elements in ODIN’s manage-ment model:

Interacting expertiseSharing knowledge and information, making each other good and working towards a common goal are the main-stays of ODIN’s management culture. For this reason, we place emphasis on close collaboration between our expe-rienced managers and analysts.

Even the most advanced computer cannot match the ex-perience-based knowledge and intuition, and analytical and creative qualities, that are necessary for being a good stock picker. And when several experienced managers work well together towards a common goal, the whole becomes greater than the sum of its parts. We believe that portfolio management consists of equal parts of craftsmanship and science and equal parts of teamwork and individual performance. Our management culture and team spirit are therefore crucial reasons for our suc-cess .

A lot has been written about the importance of team spirit, esprit de corps, etc, in creating results. Andrew Carnegie said: “Teamwork is the ability to work together toward a common vision and direct individual accom-plishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results.”

Concentrated portfoliosWe believe it is possible to pick good investments at an attractive price and that if we keep to these alone we will achieve a greater return than if we spread the portfolio widely in the market. For this reason, we pick out and invest in a small selection of only the best investment opportunities that we find. This means each individual choice of investment has a noticeable effect on us.

Our goal is to keep the portfolios at between 30 and 40 companies. This means that ‘normal shareholdings have 2-3 per cent of the fund and a good return on an invest-ment has a noticeable effect on the fund. The gain, in the form of a spread of risk, from spreading the portfolio

ODINs Investment Process

This is how we invest

A close-knit team of experienced managers

Interacting expertise

We only include the best investment opportunities

All individual investments are examined according to the same framework

Concentrated portfolios

A consistent approach

I 11 IODIN FUND MANAGEMENT ANNUAL REPORT 2012


across more companies than this would be marginal and the effect of each individual choice of investment would also be marginalised.

Active portfolio management involves constantly bal-ancing an overview over the whole and insight into the individual parts. By concentrating the portfolio, manag-ers can have a closer relationship with both the entire portfolio and each individual company. That makes us better equipped to notice and assess new information that affects each of our investments, so that we have good control over both the company-specific and total risk in the portfolios.

Since we also place emphasis on active ownership in or-der to counteract company-specific risks, insight is at least as important as an overview in risk assessments. In addition, we must make sure that the portfolio has a good balance of sector-specific risk factors and liquidity risks and there are rules for this in relation to each fund.

When we set a limit for the number of individual in-vestments in the portfolios, this means that all portfo-lio investments are constantly being challenged by new

portfolio candidates. Only those which we regard as the strongest are retained and this helps to ensure that the quality of the portfolio is always high.

A consistent approachOne important condition for being able to compare and contrast quite different companies is our consistent and thorough framework for analysing and assessing all po-tential investments. We look at companies from several different angles, including their market position, com-petitive situation, sales growth, margin developments, cash flow, cost of capital, management and corporate governance as well as environmental, social and govern-ance (ESG) issues and other risk factors. An important tool in this analysis is the ODIN Company Scorecard, in which the analyses are summarised and assessed on a uniform scale across different types of companies and sectors. The scorecard summarises the background for each investment and triggers for reassessment and a possibly sale. In this way, everyone in the team can re-late to each other’s analyses and investment decisions on the same basis and we are ensured a systematic approach that minimises the risk of known psychological pitfalls.

A thorough investment process

ODIN’s investment process consists of five main steps:

Principles for responsible investment (ESG)

Risk monitoring based on each fund’s rules

Documentation

List of candidates

Market monitor-ing, searches and filtration

Analysis Decision to buy

Monitoring of the portfolio

Decision to sell

The first is market monitoring, searches and filtration. Here we apply a number of different filtration criteria to find promising investment opportunities. Our opinion on key value-drivers in the economy plays a major role here, as does our prioritisation of companies that can create a sound return on capital. We use recognised tools such as Bloomberg and FactSet and reliable third-party analysts in this work.

Based on this extensive search, we apply our analysis framework to the most promising investment opportu-nities. The investment opportunities that pass this test are then put on our buy list. The next job is then to find as many shares as we want at as favourable a price as possible in the market. This work is carried out by a sepa-rate trading manager in the management team.

The existing portfolio is monitored constantly in order to pick up on any important changes in the companies in which we have invested. We use SimCorp Dimension as a platform for administering all our fund portfolios. From SimCorp, we create, among other things, fact sheets for each fund (Fund Fact Sheet) which provide a regular snapshot of the fund’s composition, return and risks.

Each investment decision we make includes the price level at which we believe the company has fulfilled its potential. Shares in companies that reach this level are sold. If a company does not develop as we expected when we bought the share and our view of the company’s fu-ture prospects changes in a negative direction as a result, this company’s shares are also sold.

In addition to the potential of the individual invest-ments, it is important that the portfolio as a whole has good liquidity and a balanced composition and that the fund meets all the requirements stipulated by our own, the industry’s and public authorities’ regulations.

Investment opportunities that do not quite pass our test but which nonetheless have a potential which we believe may become clearer in the future are put on our list of candidates. Former portfolio investments also end up there. This list is monitored continuously and, when fac-tors that indicate a new assessment arise, these trigger a new assessment by us. Over time, the list of candidates has become an important source of new investment op-portunities as more and more corporate analyses are is-sued.

Throughout the process, we have documentation which means we can return to a previous date in the fund’s his-tory and use our own investment history as a basis for analysis and further development. Documentation also forms an important basis for the ongoing compliance and risk management work as well as for the work on responsible investments which is deeply integrated into the investment process and the analysis of each individ-ual investment.



benchmark indices. Historic returns in ODIN’s various equity funds are available under each funds annual report.

The funds’ independence of the indices and the manager’s knowledge and experience are important prerequisites for good investment decisions. The investment decisions are based on a fundamental analysis and are made on the back-ground of in-house company analyses. Investments are made in those sectors that the manager possesses a good knowledge of and has a deep insight into. Monitoring of compliance with internal and external framework conditions is made by daily reports to the group management and the fund manager.

ODIN has a permanent function which is responsible for risk management. The company has established a risk-manage-ment strategy containing general guidelines for risk manage-ment in the mutual funds and risk profiles for each mutual fund. The function responsible for risk management monitors and measures the risk in relation to the funds’ risk profiles.

Redemptions during the periodThe funds have not experienced any extraordinarily large re-demptions of units that have affected the value of their units during the year.

The companies’ routines for subscribing for and redeeming units ensure equal treatment for the unit-holders.

The largest amount redeemed in 2012 comprised:

Continued operationsAll activity linked to the funds is carried out by ODIN Forvalt-ning AS. The various funds have in that respect no employees.

The fund’s accounts have been prepared on the basis of the go-ing concern assumption.

The management company, ODIN Forvaltning AS, is in a healthy economic and financial position.

ODIN’s in-house managed equity funds include funds in the categories Norwegian funds (ODIN Norge), Swedish funds (ODIN Sweden), Nordic funds (ODIN Norden), European funds (ODIN Europa and ODIN Europa SMB), Global funds (ODIN Global, ODIN Global SMB and ODIN Emerging Mar-kets) other regional funds (ODIN Finland) and sector funds (ODIN Eiendom I, ODIN Maritim and ODIN Offshore).

The equity funds are managed according to an index independ-ent and value oriented investment philosophy. The funds can freely invest within the limits stipulated in their regulations. The funds’ goal is to provide the unit-holders with the best possible absolute return over time.

The fund mandates and fees have not been changed during 2012.

At the year-end 2012, ODIN Forvaltning AS managed:

Handelsbanken (Org.nr. 971171324) is the trustee for the funds.

Financial risk and risk managementThe financial risk relating to investments in equity funds is traditionally measured as being the price volatility or fluctua-tions in the fund’s unit values. Measured in this way, invest-ments in shares and equity funds always involve a certain risk – in the sense that the value of the units will vary from day to day and over time. Equity funds should be a long-term invest-ment alternative. The Norwegian Mutual Fund Association recommends a minimum investment period of at least five years.

The funds’ performances are compared to their own bench-mark indices. ODIN’s managers may freely compose the funds’ portfolios, irrespective of the benchmark indices to which the funds are compared. Since the funds are managed according to an index independent investment philosophy, performance will deviate from the benchmark indices. Over time, the result will be that the funds perform either worse or better than the

NOK Fund6 360 million ODIN Norden1 341 million ODIN Finland4 535 million ODIN Norge2 416 million ODIN Sverige

969 million ODIN Europa1 920 million ODIN Europa SMB

878 million ODIN Global422 million ODIN Global SMB159 million ODIN Emerging Markets609 million ODIN Maritim

2 093 million ODIN Offshore100 million ODIN Eiendom I

Fund %ODIN Norden 1.39 %

ODIN Finland 0.52 %ODIN Norge 1.95 %ODIN Sverige 1.33 %

ODIN Europa 0.99 %ODIN Europa SMB 2.81 %ODIN Global 0.74 %ODIN Global SMB 1.31 %

ODIN Emerging Market 8.22 %ODIN Maritim 0.63 %ODIN Offshore 2.68 %ODIN Eiendom I 2.17 %

Report from the Board of Directors for 2012


The profit for the year and their appropriationThe 2012 annual accounts show that the funds made the following profit:

All these annual profits have been transferred in their entirety to equity.

The returns in ODIN’s equity funds vary from year to year. The board of ODIN Fund Management is satisfied with the fact that 10 out of 12 funds in 2012 performed better than their respective benchmark indices in 2012. The Board is confident that the value-oriented investment philosophy applied by ODIN, and the measures implemented in 2011 and 2012, is a good foundation to create good long-term results.

Fund NOKODIN Norden 644 251 000

ODIN Finland 153 016 000ODIN Norge 409 077 000ODIN Sverige 389 158 000

ODIN Europa 177 867 000ODIN Europa SMB 441 312 000ODIN Global 92 017 000ODIN Global SMB 55 463 000ODIN Emerging Markets 14 734 000ODIN Maritim 20 913 000ODIN Offshore 100 145 000

ODIN Eiendom I had a profit of NOK 14 491 000 which has been appropriated as follows:

Appropriated NOKDividend distributed to unit holders: 2 482 000

Transfered to equity: 12 008 000Total appropriated: 14 491 000

Oslo, 8 February 2013 The Board of ODIN Forvaltning AS

Kirsten IdebøenChairman of the Board

(sig.)

Harald Elgaaen (sig.)

Anne Bruun-Olsen (sig.)

Tore Haarberg(sig.)

Rune SelmarManaging Director

(sig.)

Joachim Høegh-Krohn(sig.)

Tone Rønoldtangen(sig.)

Jan Friestad(sig.)

Stine Rolstad Brenna (sig.)

Report from the Board of Directors for 2012


Note 5/6 - Commission revenues/Costs:ODIN Forvaltning AS compensates the funds for brokerage costs in the case of large net subscriptions/redemptions.

Note 7 - Management fee:The management fees are calculated daily based on the funds’ total assets according to that day’s evaluation of the funds’ as-sets. The fees are paid to the management company monthly. The funds’ management fee is 2 per cent.

Note 8 - Other income and costs:Other portfolio income represents the difference between the original book value of foreign-currency bank deposits and the value of these deposits as at 31 December.

Other income represents gains from underwriting fees (in-come from the funds underwriting a part of a share issue to the market).

Other costs reflects the funds’ delivery costs invoiced by cus-todian banks. The basis for the calculations is the number of deliveries multiplied by the delivery cost per unit per market.

In August 2012, ODIN announced that, like other mutual fund providers, we have been striving to obtain a refund of the withholding tax that foreign authorities have unlawfully deducted from the dividend paid to ODIN’s equity funds. This tax contravenes the principles regarding the free flow of capi-tal stated in the EU Treaty/EEA Agreement. ODIN has applied for a refund of withholding tax to several countries, and has appealed against several decisions, including in Sweden, Fin-land, Germany and France.

On 10 January 2013, the withholding tax for 2004-2008 was refunded to ODIN by the Swedish tax authorities– a total of SEK 148 million for all the ODIN equity funds that have re-ceived dividend from Swedish companies during the period in question. The company’s other applications for refunds have not been processed yet.

The additional return from the refunded withholding tax will be credited to unit holders that are invested in the fund on the date when the amount is credited to the fund. In con-nection with this, ODIN Forvaltning has decided to debit the direct costs incurred in connection with this work to the re-spective funds. This cost is assumed to be NOK 2 million for all of ODIN’s equity funds and will be debited to the funds in 2013. The cost will be allocated according to the fund’s assets under management.

Note 1 - Note on the principle:- Financial instruments: All financial instruments, including shares, bonds, certificates and derivates, are assessed at their actual value (market value).- The determination of actual value: The actual values of the securities in the fund’s portfolio are determined on the basis of the sales prices in Blomberg at 4.30pm on each day that the stock market is open. If no sales of the securities zave been registered on the stock exchange that day, an estimated sales value is used.- Foreign currencies: Securities and bank deposits in foreign currencies are evaluated at the daily rate (information from Blomberg at 4.30pm).- Inclusion of transaction costs: The transaction costs relating to the purchase of securities (broker’s commission) are included in the securities’ cost prices.- Dividends to unit-holders: With the exception of ODIN Eiendom I, the funds do not distribute dividends. - Allocation of acquisition prices: When the funds’ securities are sold, the gain/loss on the sale is calculated based on the average cost price of the sold securities.

Note 2 - Financial derivatives:The funds have not had any financial-derivative holdings dur-ing the year and do not have any at the year-end.

Note 3 - Financial market risk:The balance sheet in the funds’ annual accounts reflects the funds’ market value, in Norwegian krone (NOK), on the last stock-exchange day of the year. The funds are equity funds whose operations expose them to share-price and foreign-exchange risks. The management of the share-price risk is dis-cussed in the annual report. Please refer to this report for fur-ther details. The equity funds have an open foreign-exchange position.

Note 4 - Asset turnover:A fund’s asset-turnover rate states the amount of securities purchased or sold by a fund during a period. A low asset-turn-over rate indicates a lower rate of purchasing/selling activity (trading) than a high asset-turnover rate. The asset-turnover rate is calculated by taking the sum of all the fund’s sales and purchases of securities, dividing this amount into two and then dividing the resultant figure by the fund’s average total assets during the accounting year.

The funds’ asset-turnover rates for 2012 were:

Fund Fund . . .

ODIN Norden 0.24 ODIN Global 0.44

ODIN Finland 0.14 ODIN Global SMB 0.39

ODIN Norge 0.21ODIN Emerging Markets 0,41

ODIN Sverige 0.28 ODIN Maritim 0.26

ODIN Europa 0.43 ODIN Offshore 0.21

ODIN Europa SMB 0.37 ODIN Eiendom I 0.30

Notes


Fund commentary - ODIN Norden

2012 was a relatively good year in the Nordic stock market. In the financial sector, Swedish commercial banks did particu-larly well and much better than the Norwegian savings banks in our portfolio. Correspondingly, weak developments in Nor-wegian shipping and the fact that we do not own expensive shares in Danish health company Novo Nordisk also led to our portfolio not doing as well as the market.

Despite high returns from good consumer companies such as Marine Harvest, Austevoll and Carlsberg, ODIN Norden thus did slightly worse than its benchmark in 2012.

The Nordic region is an exciting area with a number of quality companies exposed to attractive segments and regions. The price of these companies is still in the lower part of historical price levels, with a few exceptions such as the aforementioned Novo. This is attractive as regards the likelihood of future price rises.

2012 ended with a rise of 10.8 per cent for ODIN Norden The fund’s benchmark was up 15.4 per cent during the same period.

Slightly behind benchmarkTruls Haugen,

Portfolio Manager

See www.odinfundmanagement.com for more fund comments with a report on selected companies in the portfolio.

-5%

0%

5%

10%

15%

20%

jan.12 apr.12 jul.12 okt.12

Performance 2012

Index ODIN Norden

Jan.12 Apr. 12 Jul.12 Oct.12


ODIN Norden - Annual Report 2012ODIN Norden

1) Benchmark

VINX Benchmark Cap NOK NI measured in NOK

VINX Benchmark Cap NOK NI has been the benchmark since

31.12. 2000. Carnegie Total Index Nordic was the benchmark from

30.12.1993 to 30.12.2000. Alfred Berg Nordic Index was the

benchmark from 01.06.1990 to 30.12.1993.

This fund and ODIN Forvaltning AS are registered in Norway and regulated by Finanstilsynet (the Financial Supervisory Authority of

Norway).

Please note that the historical return is not a guarantee of future returns. The future return will among other things depend on market

developments, the manager’s skills, the fund’s risk level and the costs of buying units and managing the fund. The return may be

negative as a result of share losses.

ODIN Forvaltning employees may trade for their own account in several types of financial instruments. This means that ODIN

Forvaltning employees may own securities in companies that are referred to in this report as well as units in ODIN’s mutual funds. The

employees’ own-account trading is to take place in accordance with ODIN Forvaltning AS’s internal guidelines on employee own-

account trading, which have been prepared pursuant to the Norwegian Securities Trading Act and the Norwegian Fund and Asset

Management Association’s industry standard.

ODIN Forvaltning AS may only be held responsible for information in this document that is misleading, inaccurate or inconsistent in

relation to relevant information in the prospectus.

1 056,94% 488,17% 568,77%Total return

11,45% 8,16% 3,29%Since start 01/06/1990 (p.a.)

13,32% 12,14%Last 10 years (p.a.)

-4,91%

0,24%

-0,90%

7,57%

Last 5 years (p.a.)

Last 3 years (p.a.)

1,18%

-7,33%

-4,01%

10,81% 15,38%2012 -4,56%

-23,51% -15,90%2011 -7,62%

18,85% 28,40%2010 -9,54%

37,39% 26,82%2009 10,57%

-43,87% -39,51%2008 -4,35%

-7,41% 1,36%2007 -8,78%

30,15% 30,97%2006 -0,82%

50,30% 31,57%2005 18,73%

39,37% 21,91%2004 17,45%

78,34% 54,80%2003 23,54%

ODIN Norden Index



1,989

350,652

-792,382

-1,415,687

-2,139

104

0

-152,584

0

-136

-20,921

0

0

1,0511.Interest income

2.Dividend 263,741

3.Gain/loss on sale

4.Net change unrealised price gains/losses

5.Other portfolio revenues/costs

-169,162

692,114

-1,692

6.Commission revenue from subscription and redemption

7.Costs of subscribing for and redeeming units

8.Administrative fee

9.Other revenues

10.Other costs

0

0

-130,129

449

-101

11.Tax cost -12,018

1.Net amount distributed to unit-holders during the year 0

2.Allocated for distribution to unit-holders 0

3.Transferred to/from accrued equity

8

5

6

7

8

Amount of shares 5,449,441

1.Shares 6,258,504

2.Convertible securities

3.Warrants

0

0

1. Accrued, not yet received, revenues

2.Other receivables

1.Unit equity at nominal value

2.Premium/discount

-40

196

142,981

544,944

-611,127

Total liabilities 41,795

11

9,10

11

11

6,313,885

0

0

1

4,440

26,108

600,889

-53,619

15,385

6,008,887

NAV 31/12 1,167.06

By NAV is meant the fund’s total assets divided by the number of

units issued. There are no redemption costs for the unit-holders.

No special agreements have been entered into with major unit-

holders regarding any limitation of the equity fund’s duty to

redeem units. The fund has not redeemed any holdings that have

affected the value of its units during the year.

1,053.28

6,558,606

1,377.07

Equity as at 31/12/2011

Subscriptions in 2012

Redemptions in 2012

Dividends distributed to unit-holders in 2012


6,329,048,116

511,403,969

-1,124,857,246

6,359,845,972

0

1

Lower risk

Lower possible return

The scale indicates the link between the risk involved in and possible return on an investment in the mutual fund. A low score

indicates a low level of risk while a high score indicates a high level of risk. Note that achieving the lowest score does not mean the

investment is risk-free.

The indicator is based on fluctuations in the mutual fund’s historical year-end prices. The fluctuations are measured by the weekly

returns that have been recorded for more than the past five years. Large historical fluctuations mean it is more likely that the

investment may fluctuate a lot in the future too. The probability of the investment’s value rising and falling a lot in the future is thus

greater if there have been large historical fluctuations. Large fluctuations may also mean there is a greater chance of the price

falling to below that paid for the investment and of the return being negative due to share price losses.

Past performance is no guarantee of future performance. Historical fluctuations in price will therefore not necessarily provide a

correct picture of the fund’s future risk profile. The mutual fund’s score is thus not fixed and will normally change over time.

Higher possible risk

Higher risk

2 3 4 5 6 7

Volatility (3 years) 17,48 15,55

NOK 1000 NOK 1000



Local currency NOK 1000 NOK 1000 NOK 1000

DKK/NOK= 0,9892

2,05%0,77%-94 890FinancialsAlm. Brand 143 69913,903 549 797 48 809

0,27%2,76%-4 679Consumer staplesCarlsberg B 179 927553,50320 076 175 249

0,52%1,41%-30 837IndustrialsFLSmidth & Co 120 817326,20278 854 89 980

0,27%1,39%4 844IndustrialsG4S 83 85223,383 835 090 88 696

1,83%1,38%-56 887IndustrialsNKT Holding 144 400202,90436 020 87 513

EUR/NOK= 7,3794

1,55%2,46%28 584Consumer discretionaryAmer Sports 127 76611,261 881 642 156 349

0,11%1,65%-41 905UtilitiesFortum 146 58114,141 003 178 104 676

2,01%3,06%11 165MaterialsHuhtamäki 183 50912,262 151 777 194 674

0,45%2,52%59 187IndustrialsMetso 101 25832,06678 172 160 444

0,27%1,24%25 980Consumer discretionaryNokian Renkaat/Tyres 53 00630,04356 311 78 986

1,74%1,36%33 020IndustrialsRamirent 53 7856,211 894 228 86 805

0,21%3,24%65 150FinancialsSampo A 141 12124,331 148 881 206 271

0,34%1,83%-27 045MaterialsUPM Kymmene 143 2898,811 789 035 116 244

0,97%2,11%54 532IndustrialsYIT 79 56514,731 233 660 134 097

0,95%2,29%34 666FinancialsAker A 110 869212,00686 487 145 535

2,14%1,95%-42 684Consumer staplesAustevoll Seafood 166 45228,504 342 737 123 768

1,67%0,93%-217 861EnergyBW Offshore 276 9185,1511 467 390 59 057

2,66%0,69%-30 732Consumer discretionaryBWG Homes 74 41712,053 625 336 43 685

0,10%1,77%8 773FinancialsDNB 104 07070,401 602 891 112 844

1,40%2,55%78 312EnergyDet Norske Oljeselskap 83 68982,501 963 643 162 001

1,62%1,29%31 777EnergyFarstad Shipping 50 319130,00631 514 82 097

5,13%0,96%13 892IndustrialsInfratek 47 03518,603 275 600 60 926

1,40%3,30%125 393IndustrialsKongsberg Gruppen 84 170124,501 683 238 209 563

0,48%1,38%34 459Consumer staplesMarine Harvest 53 0815,1217 097 767 87 541

0,20%1,85%628MaterialsNorsk Hydro 117 34227,884 231 356 117 970

1,78%1,04%-24 201Health carePronova Biopharma 90 15212,355 340 200 65 951

8,17%1,48%46 249FinancialsProtector Forsikring 48 12113,407 042 550 94 370

2,23%1,59%-17 118FinancialsSparebank 1 SMN, 118 00634,802 899 083 100 888

1,62%2,43%-20 915FinancialsSparebank 1 SR-Bank 175 23837,204 148 475 154 323

0,03%1,83%8 219EnergyStatoil 108 418139,00839 120 116 638

2,08%2,42%-21 393IndustrialsStolt Nielsen 174 998115,001 335 694 153 605

0,44%3,23%-9 757EnergySubsea 7 215 453132,101 557 120 205 696

13,58%3,98%143 127IndustrialsWilh. Wilhelmsen Holding B 109 841157,001 611 263 252 968

0,10%1,29%-658MaterialsYara International 82 711273,80299 682 82 053

SEK/NOK= 85,7900

0,65%3,60%6 497Consumer discretionaryAutoliv 222 620429,70621 521 229 117

0,55%2,49%59 916MaterialsBoliden 98 463122,301 509 510 158 380

0,09%4,12%12 341Consumer discretionaryHennes & Mauritz B 250 002224,901 359 702 262 343

0,23%2,44%19 967FinancialsInvestor B 134 977169,801 063 657 154 944

0,24%0,99%19 614FinancialsKinnevik B 43 579134,40548 072 63 194

0,90%1,29%13 197IndustrialsNCC B 68 651136,30699 965 81 848

0,09%2,86%-1 288FinancialsNordea (Sek) 183 13762,403 396 950 181 849

0,28%2,59%93 082IndustrialsSKF B 71 426163,701 171 390 164 508

0,09%1,58%8 790IndustrialsSandvik 91 590103,901 126 150 100 380

1,25%3,32%-28 121IndustrialsSecuritas B 239 57756,654 350 949 211 456

0,11%1,47%26 132Consumer staplesSvenska Cellulosa B 67 235141,40769 672 93 367

0,21%1,43%6 384Telecommunication servicesTele2 B 84 289117,60898 740 90 673




SEK/NOK= 85,7900

0,25%4,81%6 843IndustrialsVolvo B 299 32989,004 009 947 306 172

1) The Industry Classification is based on the Global Industry Classification Standard (GICS) from Morgan Stanley AND Standard & Poor

2) Costprice is based on average


Fund commentary - ODIN Finland

Truls Haugen, Portfolio manager

2012 was a good year for the Finnish stock market. The fi-nancial sector, and especially our investment in Pohjola, did exceptionally well and we also received a good contribution from companies such as Huhtamäki, Amer, Nokian Tyres and Marimekko. Weak developments in Fortum, a supply company, also meant that we had the relative advantage of not owning this share. Similarly, during the first half of the year, it was an advantage not to own shares in Nokia, but this company recovered sharply in the second half-year and is now back in our portfolio.

Despite the fund doing slightly worse than the market in the second half, 2012 was thus a strong year for ODIN Finland.

We kept our number of shareholdings stable throughout the year and had 30 companies at the year-end. Of our holdings, 21 produced a positive return while nine made a negative re-turn in 2012. The 10 largest shareholdings make up 50.9 per cent of the portfolio.

2012 ended with a rise of 12.6 per cent for ODIN Finland The fund’s benchmark was up 10.4 per cent during the same time period.

A good year for ODIN Finland’s unit holders


-10%

-5%

0%

5%

10%

15%

20%

25%


Performance 2012

Index ODIN Finland



ODIN Finland - Annual Report 2012ODIN Finland

1) Benchmark

OMX Helsinki Cap GI measured in NOK

OMX Helsinki Cap GI has been the benchmark since 03.06.1996.

OMX Helsinki Cap was the benchmark from 27.12.1990 to

31.05.1996.


Norway).











3 688,40% 474,95% 3 213,45%Total return

17,95% 8,27% 9,68%Since start 27/12/1990 (p.a.)

11,33% 9,32%Last 10 years (p.a.)

-3,57%

-0,01%

-4,53%

-0,09%

Last 5 years (p.a.)

Last 3 years (p.a.)

2,01%

0,08%

0,96%

12,59% 10,40%2012 2,19%

-28,96% -26,08%2011 -2,88%

24,98% 22,19%2010 2,80%

36,33% 21,63%2009 14,71%

-38,86% -34,64%2008 -4,22%

-4,59% 4,64%2007 -9,23%

42,88% 34,16%2006 8,72%

37,92% 30,24%2005 7,68%

20,64% 18,82%2004 1,82%

55,05% 41,84%2003 13,21%

ODIN Finland Index



370

64,494

-71,096

-487,101

226

17

0

-32,300

0

-91

-9,366

0

0

1161.Interest income

2.Dividend 62,498

3.Gain/loss on sale



697

126,379

-671




9.Other revenues

10.Other costs

0

0

-27,675

0

-28

11.Tax cost -8,300




8

5

6

7

8

Amount of shares 351,194

1.Shares 1,339,053


3.Warrants

0

0


2.Other receivables


2.Premium/discount

0

22

6,915

35,119

457,378


11

9,10

11

11

1,226,011

0

0

0

64

21,061

36,656

511,137

4,215

366,561

NAV 31/12 3,817.38







3,390.77

395,882

4,773.18



Redemptions in 2012



1,242,921,667

179,698,794

-234,994,437

1,340,642,266

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




EUR/NOK= 7,3794

0,57%4,31%1 709Consumer discretionaryAmer Sports 56 11211,26695 863 57 821

2,03%3,66%-50 789IndustrialsCramo 99 8477,90841 518 49 058

0,07%4,56%-28 253UtilitiesFortum 89 42914,14586 287 61 176

0,90%6,53%-6 929MaterialsHuhtamäki 94 46312,26967 539 87 535

0,12%1,10%4 540IndustrialsKCI Konecranes 10 15125,6977 493 14 691

0,46%2,11%8 817FinancialsKiinteistösijoitus Citycon 19 5252,571 494 401 28 341

0,28%0,43%-15 277IndustrialsLemminkainen 21 05914,2455 026 5 782

4,26%2,72%11 458Consumer discretionaryMarimekko 24 99714,35344 251 36 454

0,16%4,26%7 521IndustrialsMetso 49 59632,06241 424 57 117

0,08%4,97%-3 499Information technologyNokia 70 0862,943 071 272 66 587


0,28%4,71%-9 536FinancialsNordea (Eur) 72 6607,261 179 070 63 125

0,89%1,64%17 517Consumer staplesOlvi A 4 53419,75151 296 22 050

1,00%1,28%-7 164Health careOriola 24 2752,221 044 510 17 111

0,41%4,37%21 989IndustrialsOutotec 36 61042,47186 976 58 599

1,64%3,00%3 835IndustrialsPKC Group 36 33615,43352 796 40 171

0,34%5,22%17 481FinancialsPohjola Bank 52 51411,24843 877 69 995

0,43%0,41%-1 140IndustrialsPoyry 6 6412,93254 460 5 502

1,24%4,61%21 360IndustrialsRamirent 40 4516,211 348 822 61 811

3,36%3,53%-9 065Consumer discretionaryRapala 56 4564,841 326 869 47 391

0,49%2,26%-63 823MaterialsRautaruukki 94 0695,93691 190 30 246

0,07%5,17%18 617FinancialsSampo A 50 69724,33386 066 69 315

0,18%1,21%-33 292Consumer discretionarySanoma 49 4967,42295 936 16 204

0,13%2,36%-882MaterialsStora Enso R 32 5035,23819 302 31 620

1,09%1,71%2 933FinancialsTechnopolis 20 0283,79820 960 22 961

0,21%5,12%6 025Telecommunication servicesTeliaSonera (EUR) 62 6225,151 808 077 68 647

0,39%1,39%-413MaterialsTikkurila 19 06014,64172 609 18 648

0,11%2,76%-4 886MaterialsUPM Kymmene 41 9438,81570 318 37 057

0,12%4,32%27 914IndustrialsWärtsilä 30 06732,70240 280 57 981

0,43%4,44%8 352IndustrialsYIT 51 14014,73547 311 59 492




Fund commentary - ODIN Norge

Carl Erik Sando, Portfolio manager

The volume traded on the Oslo Stock Exchange was relatively weak throughout 2012 and the investors’ desire for liquidity in their investments favoured the few large companies at the expense of the many small ones whose share prices lagged be-hind.

Despite a strong final spurt at the end of the year, ODIN Norge therefore ended up clearly behind its benchmark in 2012, like many other actively managed Norwegian funds in this market climate.

There are many cyclical companies on the Oslo Stock Ex-change and their share prices fluctuate widely based on changes in the price of oil and other commodities. But despite great uncertainty about the outlook for the world economy, the analyst estimates predict good earnings for Norwegian companies, with an expected return on equity of 13 per cent in 2013. Compared to the expected interest-rate level, inves-tors will thus earn a lot on Norwegian shares.

2012 ended with a rise of 9.4 per cent for ODIN Norge The fund’s benchmark was up 21 per cent during the same time period.

Strong end to a difficult year


-5%

0%

5%

10%

15%

20%

25%

30%


Performance 2012

Index ODIN Norge



ODIN Norge - Annual Report 2012ODIN Norge

1) Benchmark

Oslo Exchange Mutual Fund Index measured in NOK

Oslo Exchange Mutual Fund Index has been the benchmark

from 26.06.1992 to 31.12.1995.


Norway).











1 685,15% 674,52% 1 010,63%Total return

15,08% 10,49% 4,59%Since start 26/06/1992 (p.a.)

14,35% 14,26%Last 10 years (p.a.)

-6,79%

-1,45%

-2,78%

6,04%

Last 5 years (p.a.)

Last 3 years (p.a.)

0,09%

-7,49%

-4,01%

9,38% 21,01%2012 -11,63%

-29,36% -18,87%2011 -10,49%

23,85% 21,54%2010 2,30%

49,64% 72,10%2009 -22,46%

-50,90% -57,71%2008 6,81%

3,54% 10,10%2007 -6,56%

25,91% 33,13%2006 -7,23%

53,09% 39,59%2005 13,50%

55,95% 38,84%2004 17,10%

75,09% 54,01%2003 21,08%

ODIN Norge Index



1,722

186,234

-458,108

-1,381,790

170

45

0

-103,600

81

-78

0

0

0


2.Dividend 132,473

3.Gain/loss on sale



-294,707

663,895

44




9.Other revenues

10.Other costs

127

0

-94,651

717

-44

11.Tax cost 0




8

5

6

7

8


1.Shares 4,475,945


3.Warrants

0

0


2.Other receivables


2.Premium/discount

-2

1,158

72,798

254,102

-699,605


11

9,10

11

11

4,173,302

0

0

254

2,969

148,201

263,540

-534,454

23,779

2,635,400

NAV 31/12 1,784.88







1,631.99

2,678,836

2,310.43



Redemptions in 2012



4,300,947,376

701,681,453

-876,269,730

4,535,435,760

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




0,36%2,45%47 877EnergyAker Solutions 63 034112,90982 381 110 911

1,94%2,60%3 563Information technologyAtea 114 32760,001 964 834 117 890

0,60%0,76%-13 286Consumer staplesAustevoll Seafood 47 98128,501 217 363 34 695


2,87%1,04%-29 895Consumer discretionaryBWG Homes 77 02112,053 910 862 47 126

2,31%1,53%12 483EnergyDOF 56 92327,002 570 580 69 406

1,88%4,81%108 933EnergyDet Norske Oljeselskap 109 31482,502 645 420 218 247

3,89%2,92%12 513Consumer discretionaryEkornes 120 02292,501 432 808 132 535

3,94%2,26%54 381EnergyElectromagnetic Geoservices 47 98613,067 838 224 102 367


2,13%2,00%20 297EnergyGanger Rolf 70 211125,50721 178 90 508

0,40%3,52%39 979FinancialsGjensidige Forsikring 119 52879,402 008 905 159 507

4,68%3,73%-67 375UtilitiesHafslund B 236 57945,303 735 192 169 204

7,34%0,82%-13 220EnergyI.M. Skaugen 50 59018,801 987 740 37 370

1,25%4,11%104 914IndustrialsKongsberg Gruppen 81 493124,501 497 245 186 407

5,20%2,72%68 590Information technologyNordic Semiconductor 54 76014,508 506 911 123 350

0,29%3,64%-33 561MaterialsNorsk Hydro 198 59727,885 919 526 165 036

0,85%3,87%32 737EnergyPetroleum Geo-Services 142 96795,351 842 723 175 704

7,44%1,33%-355Health carePhotocure 60 81138,001 590 947 60 456

1,88%1,54%-29 025Health carePronova Biopharma 98 96612,355 663 188 69 940

7,82%2,24%45 203Information technologyQ-Free 56 26619,105 312 523 101 469

0,37%1,76%4 856Consumer discretionaryRoyal Caribbean Cruises (NOK) 75 143184,00434 774 79 998

3,61%4,03%66 002Consumer staplesSalMar 116 98744,704 093 706 182 989

6,02%0,47%-42 357MaterialsScana Industrier 63 6821,2317 337 193 21 325

0,72%4,03%75 346Consumer discretionarySchibsted 107 554235,50776 645 182 900


2,16%4,52%-26 274FinancialsSparebank 1 SR-Bank 231 37737,205 513 510 205 103

0,07%6,56%25 626EnergyStatoil 272 068139,002 141 684 297 694

0,43%4,43%17 909EnergySubsea 7 182 982132,101 520 750 200 891

0,06%2,50%18 828Telecommunication servicesTelenor 94 704112,201 011 872 113 532

1,27%2,07%15 967IndustrialsTomra Systems 78 13750,251 872 725 94 104

5,15%1,51%2 677Information technologyVIZRT 65 84119,903 443 073 68 517

1,06%1,37%5 973IndustrialsVeidekke 56 21044,001 413 268 62 184

2,17%3,49%84 639IndustrialsWilh. Wilhelmsen Holding B 73 598157,001 007 877 158 237

0,43%7,54%20 139MaterialsYara International 321 690273,801 248 462 341 829




Fund commentary - ODIN Sverige

Tomas RamsälvPortfolio manager

Throughout 2012, the stock market alternated between hope and desperation, driven by macro indicators, political pro-cesses and central bank stimuli. The positive start to the first quarter turned to unrest during the summer, but changed back to renewed optimism in the autumn when figures from the USA and China, in particular, improved the outlook.

On the whole, it was a good year for ODIN Sverige, whose return was in line with that of the Swedish stock market.

During the year, we significantly reduced the number of shareholdings in the portfolio. We sold all our shares in 10 companies that had a low weight in the portfolio and were inhibited by poor liquidity, and this has improved the quality of the portfolio. With the prospect of a cautious recovery in the global economy in future driven by the USA and China, we are well positioned for the new year.

2012 ended with a rise of 19.0 per cent for ODIN Sverige The fund’s benchmark was up 15.9 per cent during the same time period.

A good year for ODIN Sverige

-5%

0%

5%

10%

15%

20%

25%


Performance 2012

Index ODIN Sverige




ODIN Sverige - Annual Report 2012ODIN Sverige

1) Benchmark

OMXSB Cap GI measured in NOK

OMXSB Cap GI has been the benchmark since 31.12.1995.

Stockholm Exchange General Index was the benchmark from

31.10.1994 to 31.12.1995.


Norway).











1 459,19% 566,82% 892,37%Total return

16,32% 11,01% 5,31%Since start 31/10/1994 (p.a.)

14,49% 13,39%Last 10 years (p.a.)

4,50%

9,76%

4,01%

10,64%

Last 5 years (p.a.)

Last 3 years (p.a.)

1,11%

-0,88%

0,49%

18,99% 15,92%2012 3,07%

-17,72% -14,04%2011 -3,68%

35,21% 36,08%2010 -0,87%

45,52% 35,30%2009 10,22%

-35,26% -33,61%2008 -1,65%

-17,66% -9,85%2007 -7,81%

41,27% 35,99%2006 5,29%

30,63% 28,43%2005 2,21%

21,38% 18,00%2004 3,38%

68,65% 55,52%2003 13,13%

ODIN Sverige Index



1,819

109,322

125,472

-734,346

-2,258

166

0

-53,094

0

-214

-15,285

0

0


2.Dividend 92,472

3.Gain/loss on sale



36,131

309,379

-3,953




9.Other revenues

10.Other costs

12

0

-45,623

0

-122

11.Tax cost -226




8

5

6

7

8


1.Shares 2,356,582


3.Warrants

0

0


2.Other receivables


2.Premium/discount

310

159

64,528

154,013

601,140


11

9,10

11

11

2,044,520

0

0

0

3

43,765

157,894

651,969

7,042

1,578,942

NAV 31/12 1,568.50







1,318.13

1,967,689

1,602.11



Redemptions in 2012



2,081,246,485

535,769,577

-590,480,144

2,415,693,906

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




SEK/NOK= 85,7900

5,08%6,92%50 672IndustrialsAddtech B 116 519185,001 053 426 167 191

0,15%2,21%-3 664Consumer discretionaryAutoliv 57 091429,70144 931 53 427

5,75%3,56%-32 635IndustrialsB&B Tools B 118 67463,751 573 192 86 040

4,47%1,33%-48 084IndustrialsBe Group 80 09816,702 234 538 32 014

4,08%4,55%16 615IndustrialsBeijer Alma B 93 208117,001 094 135 109 823

0,33%3,95%12 874MaterialsBoliden 82 444122,30908 470 95 318

5,14%0,80%-15 989EnergyConcordia Maritime B 35 28210,002 248 859 19 293

4,12%4,06%14 725Consumer discretionaryDuni 83 38259,001 938 256 98 107

1,59%6,34%109 075MaterialsHexpol 44 060341,00523 461 153 135

1,23%3,37%5 601IndustrialsIntrum Justisia 75 73596,50982 466 81 336

6,80%3,78%48 395Information technologyLagercrantz Group B 42 99971,001 500 460 91 394

8,62%0,45%-14 209IndustrialsLammhults Design Group 25 12620,10633 096 10 917

1,57%4,02%25 796IndustrialsLoomis B 71 419104,001 089 585 97 215

7,45%0,95%3 094IndustrialsMalmbergs Elektriska B 19 92650,00536 657 23 020

2,40%1,57%6 168Information technologyNolato B 31 71678,00566 136 37 884

0,10%7,68%-12 612FinancialsNordea (Sek) 198 07962,403 464 539 185 467

0,86%2,48%-6 602IndustrialsPeab B 66 50631,002 252 428 59 903

0,17%4,01%18 533IndustrialsSKF B 78 405163,70690 251 96 938

0,07%3,46%13 034IndustrialsSandvik 70 496103,90937 100 83 529

0,13%2,54%-1 156IndustrialsScania B 62 439134,80529 929 61 284

2,16%4,58%44 174IndustrialsSweco B 66 34472,501 776 883 110 518

0,05%2,79%21 215FinancialsSwedbank 46 262127,20618 350 67 477

1,47%2,36%8 984IndustrialsSystemair 47 97487,00763 127 56 958

3,02%0,41%-28 362IndustrialsTranscom Worldwide A 38 3320,5421 521 051 9 970

3,02%0,33%371IndustrialsTranscom Worldwide B 7 5000,5716 095 220 7 871

0,52%3,62%26 498IndustrialsTrelleborg B 60 93580,701 262 888 87 433

2,49%5,08%29 236Consumer discretionaryUnibet 93 591203,50703 547 122 827

0,12%5,89%-1 207IndustrialsVolvo B 143 52289,001 863 906 142 315

2,13%4,47%37 539IndustrialsÅF B 70 546154,00818 107 108 086




Fund commentary - ODIN Europa

Alexandra Morris,Portfolio manager

At the year-end, we could thus note that it had been a very strong year for ODIN Europa, which achieved a return of all of 22.8 per cent for the year. This was 11.6 percentage points more than the European market index.

2012 is thus another in the row of good periods since we took over the management of the fund in 2004. The fund is now ahead of its benchmark for 2012, the past three and the past five years. Not many people forecast such an outcome at the beginning of 2012, but the companies in the portfolio have proven that they can deliver despite the ongoing euro crisis. We have strong faith in our companies continuing to deliver good results in 2013 and in the stock market appreciating this.

2012 was a year of broad, positive progress in which most of our portfolio companies made a strong con-tribution to the fund’s return. At the same time, we were not invested in what proved to be the year’s losers in the European market.

A strong year for ODIN Europa


-10%-5%0%5%

10%15%20%25%30%


Performance 2012

Index ODIN EuropaJan.12 Apr. 12 Jul.12 Oct.12


ODIN Europa - Annual Report 2012ODIN Europa

1) Benchmark

MSCI Europe net Index USD measured in NOK

From 15.11.1999 to 24.11.2004 this fund was a fund of funds,

invested solely in Robur Europafond.


Norway).











-5,76% 3,21% -8,97%Total return

-0,45% 0,24% -0,69%Since start 15/11/1999 (p.a.)

6,54% 5,96%Last 10 years (p.a.)

-3,63%

5,40%

-3,85%

2,10%

Last 5 years (p.a.)

Last 3 years (p.a.)

0,58%

3,30%

0,22%

22,77% 11,17%2012 11,61%

-15,76% -9,63%2011 -6,13%

13,29% 5,98%2010 7,31%

22,91% 11,25%2009 11,65%

-42,30% -30,67%2008 -11,64%

-17,59% -1,00%2007 -16,59%

41,99% 23,67%2006 18,32%

40,46% 22,26%2005 18,19%

8,30% 8,82%2004 -0,52%

27,57% 33,55%2003 -5,98%

ODIN Europa Index



299

25,594

-168,501

-1,139

-2,180

119

0

-18,214

0

-172

-2,050

0

0


2.Dividend 26,851

3.Gain/loss on sale



8,346

164,382

-1,331




9.Other revenues

10.Other costs

0

0

-17,960

0

-89

11.Tax cost -2,502




8

5

6

7

8


1.Shares 952,212


3.Warrants

0

0


2.Other receivables


2.Premium/discount

4,552

-189

26,681

1,028,430

158,775


11

9,10

11

11

762,254

0

0

3,736

-93

18,152

1,018,936

159,191

1,933

10,189,357

NAV 31/12 94.23







76.76

10,551,663

91.11



Redemptions in 2012



782,116,407

169,349,692

-160,272,418

969,061,164

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




EUR/NOK= 7,3794

0,00%3,38%10 757Consumer staplesAnheuser-Busch InBev 21 99965,7767 491 32 756

EUR/NOK= 7,3794

0,03%3,27%5 381Consumer discretionaryMichelin 26 31671,2960 251 31 697

0,00%2,98%1 911Health careSanofi 26 99071,1155 075 28 901

0,10%2,28%-4 092Consumer discretionaryValeo 26 21737,7779 381 22 125

EUR/NOK= 7,3794

0,03%3,06%10 872Consumer discretionaryAdidas 18 79967,3159 735 29 671

0,01%3,34%3 108FinancialsAllianz 29 287104,6541 949 32 395

0,12%3,01%-5 013Consumer discretionaryAxel Springer 34 19732,29122 497 29 184

0,01%3,85%9 435MaterialsBASF 27 91371,2871 002 37 347

0,01%2,48%6 442Health careBayer 17 58571,9045 284 24 027

0,09%2,87%-694IndustrialsFraport 28 54243,8985 994 27 849

0,08%3,37%4 025Consumer discretionaryHUGO BOSS 28 64679,8055 480 32 671

0,46%3,26%5 147Consumer discretionaryLeoni 26 44228,55149 937 31 589

0,01%4,60%11 416Information technologySAP AG 33 16260,7799 405 44 578

EUR/NOK= 7,3794

0,82%3,11%-3 155IndustrialsAstaldi 33 3065,08805 104 30 152

0,15%3,71%5 535IndustrialsPrysmian 30 45915,07323 662 35 994

0,10%2,24%6 967EnergyPetroleum Geo-Services 14 72895,35227 529 21 695

0,06%2,96%3 485EnergySubsea 7 25 212132,10217 233 28 696

CHF/NOK= 6,1101

0,29%2,53%13 571Information technologyAustriamicrosystems 10 99196,7041 571 24 562

0,06%3,95%6 111Consumer discretionarySwatch Group 32 12478,7079 513 38 235

0,11%2,75%-3 057EnergyTransocean (CHF) 29 74740,46107 961 26 690

GBP/NOK= 9,0085

0,12%3,69%-1 334IndustrialsBunzl 37 1151 009,00393 657 35 782

0,01%2,27%7 580Consumer staplesDiageo 14 4161 803,50135 390 21 997

0,10%3,39%9 238Consumer discretionaryGKN 23 636230,001 586 607 32 874

0,14%4,44%5 500IndustrialsIMI 37 5341 095,00436 262 43 034

0,02%3,57%10 410IndustrialsRolls-Royce Holdings 24 220884,00434 869 34 631

0,04%3,50%1 905Health careShire 32 0351 899,00198 399 33 940

0,05%2,88%4 633Health careSmith & Nephew 23 301685,00452 670 27 933

0,01%2,53%-1 230FinancialsStandard Chartered 25 7401 571,50173 134 24 510

0,01%3,43%5 206Consumer staplesUnilever 28 0662 379,00155 250 33 272

0,08%2,93%2 228IndustrialsWeir Group 26 1181 884,00167 013 28 345




USD/NOK= 5,5825

0,05%2,59%1 238Consumer staplesCoca-Cola Enterprises 3) 23 84331,37143 220 25 081



3) All turnover in Europe


Fund commentary - ODIN Europa SMB

At the year-end, we could thus note that it had been a very strong year for ODIN Europa SMB, which achieved a return of all of 32.4 per cent for the year. This was 12.3 percentage points more than the European index for small and medium-sized companies.

Not many people forecast such an outcome at the beginning of 2012, but ODIN Europa SMB’s companies have proven that they can deliver despite the ongoing euro crisis. We have strong faith in our companies continuing to deliver good re-sults in 2013 and in the stock market appreciating this more and more.

2012 was a year of broad, positive progress in which most of our portfolio companies made a strong contribution to the fund’s return. At the same time, we were not invested in what proved to be the year’s losers in the European market.

A strong year for ODIN Europa SMBAlexandra Morris,Portfolio manager

0%

5%

10%

15%

20%

25%

30%

35%


Performance 2012

Index ODIN Europa SMB




ODIN Europa SMB - Annual Report 2012ODIN Europa SMB

1) Benchmark

MSCI Europe net Small cap Index USD measured in NOK


invested solely in Robur Småbolagsfond Europa.


Norway).











53,80% 108,73% -54,93%Total return

3,33% 5,77% -2,43%Since start 15/11/1999 (p.a.)

11,46% 11,04%Last 10 years (p.a.)

-2,51%

6,85%

-0,65%

6,47%

Last 5 years (p.a.)

Last 3 years (p.a.)

0,42%

0,39%

-1,85%

32,35% 20,11%2012 12,24%

-22,21% -18,84%2011 -3,37%

18,59% 23,89%2010 -5,29%

19,24% 34,39%2009 -15,15%

-39,53% -40,38%2008 0,85%

-14,23% -11,11%2007 -3,12%

47,20% 34,32%2006 12,88%

46,43% 32,89%2005 13,54%

20,68% 19,47%2004 1,20%

50,95% 55,58%2003 -4,63%

ODIN Europa SMB Index



704

38,911

-351,119

-73,778

-1,393

320

0

-34,617

0

-84

-3,328

0

0


2.Dividend 54,804

3.Gain/loss on sale



36,075

392,198

-3,604




9.Other revenues

10.Other costs

95

0

-34,073

61

-76

11.Tax cost -4,785




8

5

6

7

8


1.Shares 1,873,799


3.Warrants

0

0


2.Other receivables


2.Premium/discount

4,422

-68

76,693

1,248,829

779,071


11

9,10

11

11

1,336,205

0

0

4,054

4,153

52,636

1,199,215

743,141

3,521

11,992,152

NAV 31/12 153.77







116.20

12,550,654

149.39



Redemptions in 2012



1,393,528,656

549,387,268

-463,843,911

1,920,384,009

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




EUR/NOK= 7,3794

0,69%3,50%-12 285MaterialsHuhtamäki 79 49712,26742 906 67 212


1,24%3,22%-21 562IndustrialsRamirent 83 3066,211 347 355 61 744

EUR/NOK= 7,3794

0,42%2,45%4 168IndustrialsTeleperformance 42 87127,13235 000 47 039

0,17%1,93%4 513Consumer discretionaryValeo 32 60637,77133 177 37 119

EUR/NOK= 7,3794

1,57%3,56%23 778Telecommunication servicesDrillisch 44 65111,09836 158 68 429

1,29%4,64%-5 253Consumer discretionaryLeoni 94 31828,55422 745 89 065

1,60%2,28%-47 136FinancialsPatrizia immobilien 91 0046,47918 810 43 868

0,95%3,30%10 138IndustrialsPfeiffer Vacuum Technology 53 26391,4094 000 63 401

EUR/NOK= 7,3794

1,01%6,03%20 455Consumer staplesC&C Group 95 4054,523 475 870 115 860

0,45%3,50%16 795MaterialsSmurfit Kappa 50 3388,921 020 000 67 133

EUR/NOK= 7,3794

0,84%3,65%1 837IndustrialsAnsaldo STS 68 2397,091 339 382 70 076

2,47%4,74%-19 181IndustrialsAstaldi 110 1665,082 429 498 90 986

1,32%2,60%5 718IndustrialsDanieli & C Risp NC 44 29812,70533 685 50 016


EUR/NOK= 7,3794

0,69%6,01%17 783Consumer staplesNutreco 97 72164,40243 048 115 505

0,72%4,59%-18 898IndustrialsRoyal Imtech 106 99217,51681 772 88 094

1,25%3,23%-3 141Information technologyUNIT 4 NV 65 14822,91366 849 62 007

0,37%1,07%-11 846EnergyBonheur 32 391136,00151 068 20 545


1,03%1,99%18 596Health carePronova Biopharma 19 55312,353 089 000 38 149


EUR/NOK= 7,3794

0,68%1,04%-5 415Consumer staplesPescanova 25 38813,88195 000 19 973

0,34%2,40%1 684Consumer staplesViscofan 44 36939,88156 486 46 052

CHF/NOK= 6,1101

0,84%3,68%32 739Information technologyAustriamicrosystems 37 97996,70119 689 70 718

0,45%2,67%22 524IndustrialsBucher Industries Ltd 28 678181,9046 069 51 202

0,41%1,99%-1 961IndustrialsGeorg Fischer 40 229369,5016 950 38 268




CHF/NOK= 6,1101

0,52%1,49%4 461FinancialsSchweizerische Natl-V 24 14941,15113 791 28 611

GBP/NOK= 9,0085

0,73%3,54%678IndustrialsBERENDSEN 67 382597,001 265 499 68 059

0,53%2,56%6 080Consumer discretionaryDixons Retail 43 17028,5719 135 831 49 250

0,18%2,16%11 214Telecommunication servicesInmarsat 30 190585,00785 644 41 403

0,29%3,29%24 637Information technologySpectris 38 5622 033,00345 079 63 199

0,19%1,05%685IndustrialsUltra Electronics Hldgs 19 5731 672,00134 496 20 258




Fund commentary - ODIN Global

2012 was characterised by a lot of turbulence at the politi-cal level. There was a lot of uncertainty about macroeconomic developments, especially due to the long-lasting political tug-of-war in Europe and the USA, as well as concerns about the rate of growth in key growth engines such as China, Russia, India and Brazil.

At company level, however, we can see sound balance sheets, high margins and strong cash flows in many companies. We select a concentrated portfolio of the very best of these com-panies, and in 2012 our choice of companies in the consumer and cyclical manufacturing sectors did especially well.

A good year for ODIN GlobalOddbjørn Dybvad and Vegard Søraunet

Portfolio managers


In total, the portfolio produced a return of 12.5 per cent. This was 5.3 percentage points better than its benchmark, the MSCI World Net Index.

0%

2%

4%

6%

8%

10%

12%

14%


Performance 2012

Index ODIN GlobalJan.12 Apr. 12 Jul.12 Oct.12


ODIN Global - Annual Report 2012ODIN Global

1) Benchmark

MSCI World Net Index measured in NOK


invested solely in Templeton Global Fund A.


Norway).











10,83% -9,63% 20,46%Total return

0,79% -0,77% 1,55%Since start 15/11/1999 (p.a.)

5,37% 5,03%Last 10 years (p.a.)

-0,34%

6,75%

-0,82%

5,14%

Last 5 years (p.a.)

Last 3 years (p.a.)

0,34%

1,61%

0,48%

12,53% 7,18%2012 5,34%

-8,46% -4,02%2011 -4,44%

18,18% 13,04%2010 5,14%

31,54% 8,97%2009 22,57%

-38,61% -24,28%2008 -14,33%

-10,88% -5,33%2007 -5,55%

15,91% 11,04%2006 4,87%

18,31% 22,34%2005 -4,03%

7,74% 3,27%2004 4,47%

30,44% 28,31%2003 2,13%

ODIN Global Index



24

20,574

35,967

-106,206

-52

334

0

-15,162

0

-91

-1,604

0

0


2.Dividend 19,189

3.Gain/loss on sale



18,568

71,976

-785




9.Other revenues

10.Other costs

2

0

-15,943

0

-66

11.Tax cost -1,062




8

5

6

7

8


1.Shares 871,190


3.Warrants

0

0


2.Other receivables


2.Premium/discount

1,525

-15

12,034

792,738

16,653


11

9,10

11

11

698,562

0

0

2,302

16

8,348

718,763

12,022

1,363

7,187,630

NAV 31/12 110.82







98.48

8,718,698

107.59



Redemptions in 2012



707,864,885

217,254,202

-138,648,474

878,487,175

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




AUD/NOK= 5,7909

0,13%3,19%459IndustrialsALS 27 57510,93442 903 28 033

EUR/NOK= 7,3794

0,03%3,38%23Consumer discretionaryMichelin 29 67471,2956 451 29 698

EUR/NOK= 7,3794

0,01%3,17%4 767MaterialsBASF 23 11271,2853 001 27 879

0,04%4,83%6 952Consumer staplesHenkel 35 49051,72111 202 42 442

EUR/NOK= 7,3794

0,08%4,94%14 865Consumer staplesKerry Group 28 56439,98147 201 43 428

KRW/NOK= 0,5223

0,15%2,60%7 073Consumer discretionaryHyundai Motor Pref. 2 15 74075 600,0057 778 22 813

0,05%5,50%22 072Information technologySamsung Electronics Pref. 26 274852 000,0010 865 48 346

EUR/NOK= 7,3794

0,02%2,95%1 851IndustrialsPhilips Electron 24 04019,86176 661 25 891

0,05%3,52%-1 085MaterialsNorsk Hydro 31 97527,881 107 954 30 890

ZAR/NOK= 0,6557

0,01%3,40%5 563Telecommunication servicesMTN Group 24 31217 828,00255 560 29 875

CHF/NOK= 6,1101

0,01%3,09%421IndustrialsABB (CHF) 26 74118,81236 330 27 162


0,01%3,20%7 998MaterialsSyngenta 20 115367,9012 506 28 112

TRY/NOK= 3,1225

0,03%3,62%3 540FinancialsTurkiye Garanti Bankasi 28 3019,381 087 133 31 841

GBP/NOK= 9,0085

0,02%2,74%11 345IndustrialsRolls-Royce Holdings 12 762884,00302 720 24 107

0,01%2,80%997FinancialsStandard Chartered 23 5811 571,50173 615 24 578

0,08%3,24%4 651IndustrialsWeir Group 23 7791 884,00167 512 28 430




USD/NOK= 5,5825

0,01%3,67%2 438Industrials3M 29 80292,3262 556 32 240

0,04%3,11%-912Health careAgilent Technologies 28 27540,21121 901 27 363

0,00%0,92%2 158Consumer staplesAnheuser-Busch ADR. 5 96186,8916 739 8 119

0,02%2,74%1 402Health careCovidien 22 62656,5976 061 24 029

0,01%2,79%-2 113Information technologyEMC Corp 26 65925,09175 249 24 546

0,03%2,89%4 244EnergyEnsco PLC 21 17857,7578 851 25 422

0,01%2,83%-201EnergyHalliburton 25 07834,16130 453 24 877

0,02%2,88%1 462IndustrialsIllinois Tool Works 23 86460,3775 148 25 326

0,12%3,07%2 594IndustrialsNordson Corp 24 38662,2577 637 26 980

0,00%4,81%1 265Information technologyOracle 41 01133,27227 597 42 276

0,02%1,94%660IndustrialsParker Hannifin 16 37984,3936 167 17 039

0,15%2,13%-2 822Consumer discretionarySotheby's 21 51332,52102 957 18 691

0,01%0,97%73IndustrialsStanley Black & Decker 8 44672,6021 020 8 519

0,02%3,42%40EnergyTenaris ADR 29 96641,35129 988 30 006

0,07%3,34%1 515Health careVarian Medical Systems 27 82870,0575 036 29 343




Fund commentary - ODIN Global SMB

2012 was characterised by a lot of turbulence at the political level. There was a lot of uncertainty linked to macroeconomic developments, especially due to the long-lasting political tug-of-war in Europe and the USA, as well as concerns about the rate of growth in key growth engines such as China, Russia, India and Brazil.

At company level, however, we can see sound balance sheets, high margins and strong cash flows in many small and me-dium-sized companies. We select a concentrated portfolio of the very best of these companies, and in 2012 our choice of companies in the consumer and cyclical manufacturing sec-tors did especially well.

A good year for ODIN Global SMBOddbjørn Dybvad and Vegard Søraunet

Portfolio managers

-2%0%2%4%6%8%

10%12%14%16%18%


Performance 2012

Index ODIN Global SMB

In total, the portfolio produced a return of 15.2 per cent. This was 6.7 percentage points better than its benchmark, the MSCI World Small Cap Index.




ODIN Global SMB - Annual Report 2012ODIN Global SMB


Norway).











20,50% 91,01% -70,51%Total return

1,43% 5,05% -3,62%Since start 15/11/1999 (p.a.)

4,99% 9,11%Last 10 years (p.a.)

-3,27%

3,69%

2,82%

8,43%

Last 5 years (p.a.)

Last 3 years (p.a.)

-4,12%

-4,74%

-6,08%

15,20% 8,50%2012 6,70%

-17,56% -7,60%2011 -9,96%

17,44% 27,28%2010 -9,85%

26,53% 22,38%2009 4,14%

-40,01% -26,40%2008 -13,61%

-12,36% -12,68%2007 0,32%

17,91% 8,39%2006 9,52%

20,38% 29,29%2005 -8,91%

6,95% 11,90%2004 -4,95%

44,61% 52,10%2003 -7,49%

ODIN Global SMB Index

MSCI World Net Small Cap Index measured in NOK

From 15.11.1999 to 12.06.2007 this fund was a fund of funds, invested solely in Templeton Global Smaller Compagnies Fund



47

10,417

8,143

-91,559

271

0

0

-8,432

0

-48

-784

0

0

281.Interest income

2.Dividend 14,111

3.Gain/loss on sale



14,980

36,050

-396




9.Other revenues

10.Other costs

2

0

-8,029

21

-29

11.Tax cost -1,275




8

5

6

7

8


1.Shares 396,425


3.Warrants

0

0


2.Other receivables


2.Premium/discount

997

66

25,545

350,218

63,308


11

9,10

11

11

363,610

0

0

1,481

-10

4,869

352,381

63,232

1,369

3,523,812

NAV 31/12 120.48







104.60

3,663,066

126.87



Redemptions in 2012



368,581,539

60,960,491

-63,047,778

421,957,713

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




AUD/NOK= 5,7909

0,07%3,59%2 403IndustrialsALS 12 75410,93239 480 15 158

EUR/NOK= 7,3794

0,15%4,62%-4 078MaterialsLenzing 23 59068,2338 753 19 512

0,24%2,79%-398IndustrialsSemperit Holding 12 18131,7550 300 11 783

BRL/NOK= 2,7310

0,11%2,32%-2 340FinancialsBanrisul 12 13915,60230 000 9 799

EUR/NOK= 7,3794

0,11%3,27%4 666Health careCarl Zeiss Meditec 9 12321,7585 914 13 789

0,07%3,52%1 988Information technologySoftware 12 85032,1162 632 14 839

0,14%2,89%-657Information technologyWincor Nixdorf 12 84135,4946 529 12 184

EUR/NOK= 7,3794

0,24%3,19%-30Consumer discretionaryJumbo 13 4875,91308 568 13 457

HKD/NOK= 0,7203

0,12%2,08%-743Consumer discretionaryTexwinca 9 5277,321 666 000 8 784

EUR/NOK= 7,3794


0,25%3,55%-873Health careSorin 15 8671,691 200 843 14 994

MUR/NOK= 0,1820

0,16%2,89%-717FinancialsMauritius Commerical Bank 12 916171,00391 900 12 199

MXN/NOK= 0,4293

0,12%3,48%67MaterialsCorp.Moctezuma 14 63432,001 070 150 14 701

0,14%1,89%-961Consumer staplesAustevoll Seafood 8 92128,50279 292 7 960

0,15%5,29%6 224IndustrialsKongsberg Gruppen 16 085124,50179 191 22 309

0,94%0,79%-9 242MaterialsScana Industrier 12 5751,232 709 822 3 333

CHF/NOK= 6,1101

0,05%3,46%8 099MaterialsSIKA 6 4992 105,001 135 14 598





GBP/NOK= 9,0085

0,05%2,81%2 108Telecommunication servicesInmarsat 9 754585,00225 081 11 862

0,32%2,00%-11 077Consumer staplesPremier Foods 19 534123,75758 650 8 457

USD/NOK= 5,5825

0,05%2,92%4 279IndustrialsAGCO 8 05248,1645 865 12 331

0,15%3,91%820FinancialsBank of Hawaii 15 66444,1666 866 16 484

0,05%1,83%1 703Consumer staplesEmbotelladora Andina 6 00937,5736 771 7 712

0,07%3,75%3 947IndustrialsHubbell 11 88483,3534 023 15 831

0,09%4,09%1 283IndustrialsKirby Corp 15 96061,1250 536 17 243

0,16%7,39%9 233MaterialsNewMarket 21 946261,7921 335 31 180

0,06%3,06%1 340IndustrialsNordson Corp 11 58062,2537 179 12 920

0,04%2,25%68EnergyRowan Companies 9 41830,5555 620 9 486

0,09%2,69%-1 998Consumer discretionarySotheby's 13 35532,5262 554 11 356




Fund commentary - ODIN Emerging Markets

Oddbjørn Dybvad and Vegard SøraunetPortfolio managers

The year was a relatively good one for ODIN Emerging Mar-kets, which produced a slightly higher return than its bench-mark, the MSCI Emerging Markets Index.

As regards the future, emerging markets are still priced lower than mature markets, but the increasing willingness to take risk may reverse the money flow and lead to a strong share-price rally. We are constantly finding interesting companies in the region that have a possible future upside. The fund has a concentrated portfolio and we believe the balanced sector exposure ensures that risks are spread.

In 2012, as in 2011, emerging markets were over-shadowed by developed markets from a yield point of view. The strong flow of capital out of this region led to a fall in share prices in 2011 and global in-vestors continued to be cautious about investing in the region in 2012.

Emerging markets are still in the shadows


-2%0%2%4%6%8%

10%12%14%16%


Performance 2012

Index ODIN Emerging MarketsJan.12 Apr. 12 Jul.12 Oct.12


ODIN Emerging Markets - Annual Report 2012ODIN Emerging Markets

1) Benchmark

MSCI Daily TR Net Emerging Markets USD measured in NOK


invested solely in Templeton Global Fund A.


Norway).











71,04% 141,34% -70,30%Total return

4,17% 6,94% -2,77%Since start 15/11/1999 (p.a.)

10,37% 13,92%Last 10 years (p.a.)

-1,76%

2,17%

-0,31%

3,29%

Last 5 years (p.a.)

Last 3 years (p.a.)

-3,55%

-1,13%

-1,45%

10,66% 10,01%2012 0,65%

-17,76% -16,84%2011 -0,92%

17,22% 20,52%2010 -3,30%

41,79% 48,59%2009 -6,80%

-39,51% -39,89%2008 0,38%

10,53% 20,57%2007 -10,04%

17,25% 22,24%2006 -4,98%

41,71% 49,73%2005 -8,02%

9,59% 13,02%2004 -3,43%

45,94% 50,20%2003 -4,26%

ODIN Emerging Markets Index



46

4,740

-6,645

-20,167

-300

24

0

-2,654

0

-47

-464

0

0

251.Interest income

2.Dividend 6,283

3.Gain/loss on sale



-8,184

20,828

-274




9.Other revenues

10.Other costs

16

0

-2,918

0

-30

11.Tax cost -1,013




8

5

6

7

8


1.Shares 149,004


3.Warrants

0

0


2.Other receivables


2.Premium/discount

122

-2

13,266

92,714

28,494


11

9,10

11

11

139,643

0

0

6

13

2,735

91,914

27,523

337

919,140

NAV 31/12 171.03







154.57

608,966

187.94



Redemptions in 2012



142,059,877

37,638,459

-35,867,041

158,565,641

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




EUR/NOK= 7,3794

0,04%3,22%-1 113MaterialsLenzing 6 21568,2310 134 5 102

BRL/NOK= 2,7310

0,05%2,47%-1 983FinancialsBanrisul 5 90015,6091 950 3 917

HKD/NOK= 0,7203

0,03%2,71%-277Consumer discretionarySamsonite International 4 57115,60382 125 4 294

0,07%3,33%688Consumer discretionaryTexwinca 4 6007,321 002 945 5 288

HUF/NOK= 0,2538

0,01%2,99%-155EnergyMol Hungarian Oil And Gas 4 89117 755,0010 509 4 736

INR/NOK= 0,1019

0,03%1,76%-903FinancialsIndian Bank 3 688194,70140 338 2 785

0,05%2,92%298Consumer discretionaryTata Motors Pref 4 326172,20263 442 4 624

IDR/NOK= 0,5674

0,00%2,81%-374Telecommunication servicesTelekomunikasi Indonesia 4 8259 050,00866 763 4 451

ILS/NOK= 1,4956

0,00%1,78%-1 237Health careTEVA Pharmaceutical 4 06113 850,0013 633 2 824

KES/NOK= 0,0648

0,09%3,16%944FinancialsKenya Commercial Bank 4 06129,752 596 528 5 006

KRW/NOK= 0,5223

0,01%2,75%788Consumer discretionaryHankook Tire OpCo 3 57247 000,0017 763 4 360

0,00%2,55%-287Consumer discretionaryHyundai Mobis 4 327288 000,002 686 4 040

0,01%5,10%2 000Information technologySamsung Electronics Pref. 6 094852 000,001 819 8 094

MUR/NOK= 0,1820

0,06%2,70%-98FinancialsMauritius Commerical Bank 4 385171,00137 726 4 287

NGN/NOK= 0,0357

0,02%3,69%1 876FinancialsGuaranty Trust Bank 3 97423,007 125 000 5 850

RUB/NOK= 0,1832

0,05%3,85%-462FinancialsSberbank PFD CLS 6 57467,32495 605 6 112




USD/NOK= 5,5825

0,01%2,53%575EnergyBashneft 3 44560,0012 000 4 019

ZAR/NOK= 0,6557

0,02%4,84%480IndustrialsBidvest 7 18921 898,0053 407 7 668

0,00%5,36%623Telecommunication servicesMTN Group 7 88017 828,0072 738 8 503

CHF/NOK= 6,1101

0,00%3,00%-117IndustrialsABB (CHF) 4 87818,8141 424 4 761

TWD/NOK= 0,1919

0,14%2,76%-370MaterialsTaiwan Hon Chuan Enterprise 4 74463,60358 414 4 374

TRY/NOK= 3,1225

0,01%4,31%-392FinancialsTurkiye Garanti Bankasi 7 2269,38233 333 6 834

GBP/NOK= 9,0085

0,02%2,38%317EnergyDragon Oil 3 454540,5077 448 3 771

0,00%3,37%739FinancialsStandard Chartered 4 5991 571,5037 706 5 338

USD/NOK= 5,5825

0,03%3,10%97IndustrialsGlobaltrans Investment GDR 4 82416,4053 746 4 921

USD/NOK= 5,5825

0,00%2,67%138Industrials3M 4 08992,328 200 4 226

0,00%0,89%438Consumer staplesAnheuser-Busch ADR. 96686,892 895 1 404

0,01%2,19%-2 764MaterialsCliffs Natural Resources 6 23335,8117 355 3 469

0,01%3,06%884EnergyEnsco PLC 3 97357,7515 065 4 857

0,02%2,94%233MaterialsIntl Flavors & Fragrances 4 42666,7012 511 4 659

0,03%2,79%-62Health careMindray Medical 4 49033,0623 995 4 428




Fund commentary - ODIN Maritim

Good results in a challenging marketJarle Sjo and Lars Mohagen

Portfolio managers2012 ended with a rise of 3.6 per cent for ODIN Maritim. The fund’s benchmark was down 2.8 per cent during the same time period.

2012 was a year of tough measures in several of the large shipping segments, especially the tanker, container and bulk-carrier sectors. The situation is slightly better in the industrial shipping segments and our prioritisation of these segments made a positive contribution. Acquisitions in the heavy-lift sector and large dividends from companies such as TTS and Wilhelmsen also produced good results.

Uncertainty linked to future macroeconomic developments and surplus ship capacity in many segments mean that ship-ping is still challenging. In many cases, rates are in line with or even below operating costs. One bright spot is that the scrapping of old tonnage is at a historically high level and this will ease the pressure in future.


-15%

-10%

-5%

0%

5%

10%

15%

20%


Performance 2012

Index ODIN Maritim



ODIN Maritim - Annual Report 2012ODIN Maritim

1) Benchmark

MSCI World Gross Marine Index measured in NOK

MSCI World Gross Marine Index has been the benchmark since

sedan 31.12.1998. Orkla Enskildas Shipping Index was the

benchmark from 31.10.1994 to 31.12.1998.


Norway).











514,02% 9,97% 504,05%Total return

10,51% 0,52% 9,98%Since start 31/10/1994 (p.a.)

14,78% 6,49%Last 10 years (p.a.)

-15,93%

-6,98%

-11,21%

-1,59%

Last 5 years (p.a.)

Last 3 years (p.a.)

8,28%

-5,38%

-4,72%

3,60% -2,84%2012 6,43%

-35,77% -31,18%2011 -4,59%

20,87% 42,48%2010 -21,61%

17,57% -13,95%2009 31,53%

-55,71% -32,80%2008 -22,91%

37,23% 10,05%2007 27,18%

24,08% 3,46%2006 20,61%

51,39% 44,89%2005 6,50%

61,87% 10,10%2004 51,77%

127,54% 87,67%2003 39,86%

ODIN Maritim Index



864

25,169

-3,325

-389,495

-843

0

0

-18,373

0

-36

-561

0

0


2.Dividend 26,698

3.Gain/loss on sale



-256,525

264,776

-1,228




9.Other revenues

10.Other costs

0

0

-13,345

0

-38

11.Tax cost -289




8

5

6

7

8


1.Shares 560,240


3.Warrants

10,700

0


2.Other receivables


2.Premium/discount

476

79

40,533

99,186

554,338


11

9,10

11

11

611,921

6,370

0

580

692

29,710

109,135

603,209

2,070

1,091,348

NAV 31/12 614.30







593.03

1,295,360

923.24



Redemptions in 2012



647,202,856

96,343,984

-155,163,885

609,296,439

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




DKK/NOK= 0,9892

0,03%4,85%-4 436IndustrialsA.P. Möller - Maersk B 33 98942 680,00700 29 553

0,28%3,22%-10 252IndustrialsD/S Norden 29 851163,10121 476 19 599

HKD/NOK= 0,7203

0,26%2,59%-3 761IndustrialsPacific Basin Shipping 19 5714,395 000 000 15 811

1,76%4 330Industrials8% TTS Group 11/16 (U) 6 370164,616 500 000 10 700

3,59%0,31%-35 233IndustrialsAmerican Shipping Company 37 1141,90990 040 1 881

0,97%2,10%886EnergyAwilco LNG 11 89219,50655 292 12 778


0,39%3,60%-11 032EnergyBonheur 32 942136,00161 102 21 910

0,69%3,39%1 273EnergyDOF 19 38927,00765 247 20 662

2,14%1,17%-34 827EnergyEOC 41 9423,002 371 812 7 115

154,53%0,23%-32 844IndustrialsEitzen Chemical 34 2380,0817 430 831 1 394

0,28%2,35%-1 125EnergyFarstad Shipping 15 445130,00110 155 14 320

0,81%5,62%-334EnergyGanger Rolf 34 590125,50272 957 34 256

0,61%1,78%-10 182IndustrialsGolden Ocean Group 21 0173,942 750 000 10 835

0,88%1,03%26EnergyHavila Shipping 6 26424,10261 000 6 290

0,48%0,98%-2 661Consumer discretionaryHurtigruten 8 6613,002 000 000 6 000

0,63%3,37%2 955EnergyHöegh LNG Holdings 17 54946,60440 000 20 504

2,38%1,99%-12 611EnergyI.M. Skaugen 24 73718,80645 000 12 126

5,00%3,34%-17 130IndustrialsNorwegian Car Carriers 37 4811,6812 113 999 20 352

1,41%0,35%-1 843IndustrialsOdfjell A 3 96224,0088 288 2 119

1,41%4,24%-37 979IndustrialsOdfjell B 63 80822,701 137 813 25 828

0,38%1,45%-9 180EnergySevan Drilling 18 0003,922 250 000 8 820

2,07%2,36%-5 590IndustrialsSiem Shipping 19 95772,00199 537 14 367

0,67%4,26%438EnergySolstad Offshore 25 502100,00259 396 25 940

0,81%9,81%-6 255IndustrialsStolt Nielsen 66 008115,00519 593 59 753

2,19%2,93%-30 719IndustrialsTTS Group 48 5799,401 900 000 17 860

4,63%0,01%-7 125IndustrialsThe Containership Company (U) 7 1880,10625 000 63

0,79%3,26%3 953IndustrialsWilh. Wilhelmsen Holding A 15 881157,50125 931 19 834

0,79%6,24%259IndustrialsWilh. Wilhelmsen Holding B 37 769157,00242 218 38 028

SGD/NOK= 4,5640

0,09%2,06%-6 496IndustrialsNeptune Orient Lines 19 0641,152 405 000 12 568

USD/NOK= 5,5825

0,06%0,28%-1 901EnergyDHT Holdings Pref (U) 3 63768,854 516 1 736

0,33%2,07%-33 151IndustrialsDryShips 45 7341,611 400 000 12 583

0,14%3,63%-2 849EnergyGolar LNG 24 96236,01110 000 22 113

0,30%0,93%-5 699IndustrialsNavios Maritime Holdings 11 3413,34302 600 5 642

0,03%2,27%2 058Consumer discretionaryRoyal Caribbean Cruises (USD) 11 78833,0775 000 13 846

0,38%2,29%-4 043EnergyScorpio Tankers 18 0136,95360 063 13 970



U) Unlisted stocks


Fund commentary - ODIN Offshore

Jarle Sjo and Lars MohagenPortfolio managers2012 ended with a rise of 4.1 per cent for ODIN

Offshore. The fund’s benchmark was down 5 per cent during the same time period.

A high level of activity meant that the offshore markets did well in 2012, with the exception of the FPSO and supply sec-tors. At the same time, the US onshore oil-service market was weak due to low gas prices, overcapacity and declining mar-gins.

Uncertainty about the effects of the important shale-gas rev-olution in the USA thus helped to depress share prices in the entire sector. However, compared with the sector in general, ODIN Offshore had a relatively good year.

There are many indications that the oil companies’ invest-ments and activities relating to the exploration for and pro-duction of oil and gas worldwide will reach new heights in 2013. At the same time, the growth in the capacity of the supplier industry will be limited – which will benefit this in-dustry. The prospect of continued high oil prices and slightly better gas prices in the future means there will be many excit-ing investment opportunities.


-20%-15%-10%-5%0%5%

10%15%20%


Performance 2012

Index ODIN Offshore


A strong offshore market but with low share prices


ODIN Offshore - Annual Report 2012ODIN Offshore

1) Benchmark

Philadelphia Stock Exchange Oil Service Sector Index (OSX)

measured in NOK

The benchmark index is not adjusted for dividend.


Norway).











92,08% 3,80% 88,28%Total return

5,42% 0,30% 5,12%Since start 18/08/2000 (p.a.)

16,03% 7,38%Last 10 years (p.a.)

-8,98%

-1,37%

-5,81%

2,56%

Last 5 years (p.a.)

Last 3 years (p.a.)

8,65%

-3,93%

-3,17%

4,05% -4,97%2012 9,02%

-22,42% -10,35%2011 -12,07%

18,83% 26,66%2010 -7,83%

50,32% 36,06%2009 14,26%

-56,74% -49,56%2008 -7,18%

10,73% 32,63%2007 -21,90%

41,66% 1,51%2006 40,14%

96,83% 64,48%2005 32,35%

57,95% 20,08%2004 37,87%

45,69% 3,62%2003 42,07%

ODIN Offshore Index



1,458

105,733

14,571

-846,797

-5,203

269

0

-60,222

0

-27

-409

0

0


2.Dividend 31,841

3.Gain/loss on sale



-153,815

271,874

-2,072




9.Other revenues

10.Other costs

104

0

-47,667

0

-18

11.Tax cost -396




8

5

6

7

8


1.Shares 2,067,548


3.Warrants

0

0


2.Other receivables


2.Premium/discount

-11

53

33,293

1,089,930

-329,882


11

9,10

11

11

2,383,927

0

0

-2

2

30,983

1,304,158

-129,909

7,604

13,041,576

NAV 31/12 192.05







184.59

12,905,293

237.94



Redemptions in 2012



2,407,305,986

356,179,411

-770,379,871

2,093,250,860

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




0,27%0,34%-33 387EnergyArcher 40 4514,601 535 659 7 064

4,17%4,13%50 440EnergyAwilco Drilling 36 02969,001 253 183 86 470


3,63%0,23%-7 857EnergyBadger Explorer 12 6367,10673 093 4 779

5,59%1,56%-3 196EnergyBassDrill (U) 35 8898,004 086 645 32 693

4,09%0,69%-41 956EnergyBergen Group 56 3405,802 480 000 14 384

1,03%2,72%-3 667EnergyBonheur 60 537136,00418 164 56 870

2,54%3,64%-6 088EnergyDOF 82 24327,002 820 553 76 155

3,55%0,43%-1 000EnergyDeep Sea Bergen Invest (U) 10 00090,00100 000 9 000

5,04%2,05%5 124EnergyDiscovery Offshore 37 77613,003 300 000 42 900

5,26%0,84%-70 786EnergyEOC 88 2873,005 833 714 17 501

2,00%0,95%-10 538EnergyEidesvik Offshore 30 46133,00603 754 19 924

3,87%4,80%34 017EnergyElectromagnetic Geoservices 66 53013,067 698 823 100 547

1,44%0,00%-7 419EnergyEquinox Offshore (U) 7 4500,013 038 750 30


4,02%1,75%7 006EnergyFred. Olsen Production 29 6018,604 256 642 36 607

0,64%1,29%-4 428EnergyGanger Rolf 31 505125,50215 754 27 077

6,87%2,35%-39 970EnergyHavila Shipping 89 19524,102 042 500 49 224

0,38%2,71%43 964IndustrialsKongsberg Gruppen 12 746124,50455 500 56 710

2,08%1,35%-40 400EnergyNorwegian Energy Company 68 5943,817 400 000 28 194


7,76%4,83%12 689EnergyProspector Offshore Drilling 88 46513,807 330 000 101 154

5,18%0,00%0EnergyRXT Warrants (U) 00,0014 777 0

9,51%0,26%-12 866EnergyRector Marinus Invest (U) 18 3803,001 838 000 5 514

2,26%2,48%-45 027EnergySevan Drilling 96 8963,9213 232 104 51 870

2,73%5,04%3 081EnergySolstad Offshore 102 440100,001 055 204 105 520

0,07%1,58%5 244EnergySubsea 7 27 781132,10250 000 33 025

USD/NOK= 5,5825

0,06%2,66%-29 660EnergyBaker Hughes 85 38839,93250 000 55 727

0,16%5,82%1 697EnergyCameron International 120 09154,54400 000 121 788

0,12%4,31%7 178EnergyEnsco PLC 83 09457,75280 000 90 272

0,07%6,17%2 030EnergyHalliburton 127 06434,16676 950 129 093

0,04%2,65%25 083EnergyNational Oilwell Varco Inc 30 34366,19150 000 55 426

0,18%1,85%938EnergyOil States International 37 86069,50100 000 38 798

0,51%5,17%-19 565EnergyRowan Companies 127 86030,55635 000 108 296

0,07%4,71%14 481EnergyTenaris ADR 84 13241,35427 200 98 613

0,20%6,49%-19 853EnergyTransocean (USD) 155 68644,24550 000 135 833

0,07%1,70%-23 889EnergyWeatherford Intl. (USD) 59 52710,64600 000 35 639



U) Unlisted stocks


Fund commentary - ODIN Eiendom I

A strong year for ODIN Eiendom I

2012 ended with a rise of 17.4 per cent for ODIN Eiendom I. The fund’s benchmark was up 13.4 per cent during the same time period.

The occupancy level among the listed real estate companies in the Nordic region was stable at over 90 per cent in 2012 and the second-hand value of the properties increased. This led to an increase in both the net operating income from the prop-erties and the profit for the companies as a whole.

This was also a strong year for ODIN Eiendom I, which pro-duced a higher return than that of the market for listed real estate companies.

The prospect of positive economic developments in all Nor-dic countries combined with low interest levels, high growth in employment and few new premises means the high occu-pancy level and attractive rents can be expected to remain in the future. This bodes well for the future results of listed real estate companies in the Nordic region.

Tomas RamsälvPortfolio manager

-10%

-5%

0%

5%

10%

15%

20%

des.11 mar.12 jun.12 sep.12 des.12

Performance 2012

Index ODIN Eiendom 1


Dec. 11 Mar. 12 Jun. 12 Sep. 12 Dec. 12


ODIN Eiendom I - Annual Report 2012ODIN Eiendom I

1) Benchmark

Carnegie Sweden Real Estate Index measured in NOK

The benchmark index is not adjusted for dividend.

Return in year of inception is calculated from the inception date for

both fund and benchmark.


Norway).











5,12% 4,83% 0,28%Total return

2,26% 2,13% 0,12%Since start 06/10/2010 (p.a.)

17,44% 13,44%2012 4,00%

-14,51% -13,89%2011 -0,63%

4,70% 7,31%2010 -2,61%

ODIN Eiendom I Index



109

1,797

-2,327

-14,177

-4

2

0

-1,645

0

-225

-215

1,491

0

611.Interest income

2.Dividend 2,592

3.Gain/loss on sale



-27

13,941

-70




9.Other revenues

10.Other costs

0

0

-1,883

0

-50

11.Tax cost -73

1.Net amount distributed to unit-holders during the year 2,482



8

5

6

7

8


1.Shares 97,249


3.Warrants

0

0


2.Other receivables


2.Premium/discount

0

4

3,499

99,601

952

Total liabilities 628

11

9,10

11

11

80,615

0

0

0

0

3,274

94,978

3,643

187

949,775

NAV 31/12 100.53







88.13

433,064

104.70



Redemptions in 2012



83,701,674

35,800,981

-31,547,760

100,124,684

161,568

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




EUR/NOK= 7,3794

0,08%4,66%-602FinancialsKiinteistösijoitus Citycon 5 2722,57246 246 4 670

0,06%4,58%-181FinancialsSponda 4 7703,59173 238 4 589

0,21%4,46%-86FinancialsTechnopolis 4 5553,79159 778 4 469

0,03%2,88%-151FinancialsEiendomsspar (U) 3 033152,0018 963 2 882

0,44%4,35%280FinancialsNorthern Logistic Property 4 07725,70169 550 4 357

0,15%6,87%-1 090FinancialsNorwegian Property 7 9688,50809 170 6 878

0,09%8,19%240FinancialsOlav Thon Eiendomsselskap 7 962890,009 215 8 201

0,17%2,91%-334FinancialsSelvaag Bolig 3 24217,90162 500 2 909

SEK/NOK= 85,7900

0,18%8,60%1 839FinancialsBalder B 6 77336,90272 060 8 612

0,03%4,70%180FinancialsCastellum 4 52792,7559 160 4 707

0,42%5,85%-819FinancialsCorem Property 6 67519,90343 000 5 856

0,38%8,38%118FinancialsDiös Fastigheter 8 27434,80281 080 8 392

0,03%2,60%392FinancialsFabege 2 21365,8546 120 2 605

0,19%3,79%-2FinancialsHeba Fastigheter B 3 79464,0069 060 3 792

0,03%4,10%392FinancialsHufvudstaden A 3 71382,1058 289 4 106

0,03%2,92%-41Consumer discretionaryJM Bygg 2 968116,5029 280 2 926

0,11%4,35%81FinancialsKlövern 4 27825,60198 489 4 359

0,04%4,45%249FinancialsSagax A 4 206188,0027 620 4 455

0,04%3,89%842FinancialsWallenstam B 3 05179,3557 190 3 893

0,07%4,58%354FinancialsWihlborgs 4 236101,0052 970 4 590



U) Unlisted stocks


To the Board of Directors of ODIN Forvaltning AS

Independent auditor’s report

Report on the Financial StatementsWe have audited the accompanying financial statements of the funds, which comprise the balance sheet as at December 31, 2012, and the income statement, showing an annual result for the year then ended, and a summary of significant accounting policies and other explanatory information. The financial statements are showing the following results:

ODIN Norden NOK 644 251 000 ODIN Global NOK 92 017 000 ODIN Finland NOK 153 516 000 ODIN Global SMB NOK 55 463 000ODIN Norge NOK 409 077 000 ODIN Emerging Markets NOK 14 734 000ODIN Sverige NOK 389 158 000 ODIN Maritim NOK 20 913 000ODIN Europa NOK 177 867 000 ODIN Offshore NOK 100 145 000ODIN Europa SMB NOK 441 312 000 ODIN Fastighet I NOK 14 491 000

The Board of Directors’ Responsibility for the Financial StatementsThe Board of Directors of the fund manager is responsible for the preparation and fair presentation of these financial statements in accordance with Norwegian accounting act and accounting standards and practices generally accepted in Norway, and for such internal control as The Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including International Standards on Audit-ing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by manage-ment, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements give a true and fair view of the financial position of the funds as at December 31, 2012, and of its financial performance for the year then ended in accordance with the Norwegian accounting act and accounting standards and practices generally accepted in Norway.

Report on Other Legal and Regulatory Requirements

Opinion on the Board of Directors’ reportBased on our audit of the financial statements as described above, it is our opinion that the information presented in the Board of Di-rectors report concerning the financial statements and the going concern assumption, and the proposal for the allocation of the profit/coverage of loss is consistent with the financial statements and complies with the law and regulations.

Opinion on Registration and documentationBased on our audit of the financial statements as described above, and control procedures we have considered necessary in accord-ance with the International Standard on Assurance Engagements ISAE 3000, “Assurance Engagements Other than Audits or Reviews of Historical Financial Information”, it is our opinion that the company’s management has fulfilled its duty to produce a proper and clearly set out registration and documentation of the company’s accounting information in accordance with the law and bookkeeping standards and practices generally accepted in Norway.

Oslo, 8 February 2013PricewaterhouseCoopers AS

Magne SemState Authorised Public Accountant (Norway) Note: This translation from Norwegian has been prepared for information purposes only.

Auditor’s Report for 2012


An election meeting is to be held for the following mutual funds:

ODIN Norden, ODIN Norden II, ODIN Finland, ODIN Finland II, ODIN Norge, ODIN Norge II, ODIN Sverige, ODIN Sverige II, ODIN Europa, ODIN Europa II, ODIN Europa SMB, ODIN Global, ODIN Global II, ODIN Emerging Markets, ODIN Maritim, ODIN Offshore, ODIN Eiendom, ODIN Eiendom I, ODIN Konservativ, ODIN Flex, ODIN Horisont, SpareBank 1 Pengemarked, ODIN Pengemarked, ODIN Kort Obligasjon, ODIN Obligasjon and ODIN Rente.

Time: 6pm on Tuesday the 9 th of April 2013.Place: Felix Conference center, Bryggetorget 3, 0250 OSLO

The following items are on the agenda:1) Approval of the notice of the meeting2) The election of two unit-holders to sign the minutes of the meeting3) The election of unit-holders to the board of ODIN Forvaltning AS4) Any other business

Unit holders who have questions they want discussed at the election meeting, must notify the Board of ODIN Forvaltning AS in writing no less than a week before the election meeting is held. At the election meeting, the voting rights will be adjusted so that unit holders who own equal values receive equal numbers of votes. With the exception of the elections, the election meeting cannot pass decisions that bind the funds or the management company.

Oslo, 8 February 2013

The board of ODIN Forvaltning AS

After the election meeting, we have the pleasure of inviting you to an information meeting, at which CIO Jarle Sjo will provide an update of the market situation, and ”ODIN today and Tomorrow”.

We kindly ask those who wish to attend the annual unit-holders meeting on Wednesday the 22th of March 2013 to submit this in writing to:

ODIN Forvaltning AS PO Box 1771 Vika NO-0122 OsloNORWAY

Attn: Customer Service Fax: +47 24 00 48 01e-mail: [email protected]

Please rsvp no later than by 22 March 2013.

Notice of election meeting

ODIN Fund Management AS Fjordalléen 16, N-0250 Oslo, P.O. Box 1771 Vika, N-0122 OsloTelephone: +47 24 00 48 00 Fax: +47 24 00 48 01E-mail: [email protected] www.odinfond.no

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