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Annual Report 2012ODIN Equity Mutual Funds

- Institutional Funds

February 2013

ODIN FUND MANAGEMENT ANNUAL REPORT 2012I 2 I

Contents

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 17-20 ODIN Norge II comments and annual report 21-24 ODIN Sverige II comments and annual report 25-29 ODIN Norden II comments and annual report 30-34 ODIN Europa II comments and annual report 35-38 ODIN Finland II comments and annual report 49-43 ODIN Global II comments and annual report 44-47 ODIN Eiendom comments and annual report 48 Auditor’s Report for 2012 49 Notice of election meeting

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 StockholmTelephone: +46 8 407 14 00 Fax: +46 8 407 14 66 E-mail: [email protected] www.odinfonder.se

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

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

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: kundeservice@odinfond.nowww.odinfundmanagement.comwww.odinfond.no

ODIN FUND MANAGEMENT ANNUAL REPORT 2012 I 3 I

Comments from the CEO

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 management organisations such as Folketrygdfondet, the Rasmussen Group and Norfund (The Norwegian Investment Fund for Developing Coun-tries) has made me aware that managing other people’s money requires a particularly high level of responsibility, professionalism and compliance. And these are all quali-ties that I have found in abundance here at ODIN.

ODIN’s managing organisation is in a phase in which we are reaping the fruits of processes that have been ongoing for some time. 2012 was a year in which our management 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 be-half 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 differ-entiating good companies from bad ones. As investors, we believe that our unit holders will receive the best return over time if we invest in those companies that are clever-est at creating value. In the long term, it is the companies’ 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 concen-trated 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 via 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!

Rune Selmar

«You’ve chosen the right fund manager»

I 4 I

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 na-mely almost impossible to predict with any degree of certainty. So we do not advise anyone to base their investments on short-term expectations. Ho-wever, 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 invest-ments 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.


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 investment has a noticeable effect on the fund. The gain, in the form of a spread of risk, from spreading the

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 invest-ments are examined according to the same framework

Concentrated portfolios

A consistent approach



portfolio across more companies than this would be mar-ginal and the effect of each individual choice of invest-ment 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 gover-nance (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 history and use our own investment history as a basis for analysis and further development. Documentation also forms an important basis for the ongoing compli-ance 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 in-dividual investment (read more about this in a separate article).



Report from the Board of Directors for 2012

ODIN’s in-house managed equity funds include funds in the categories Norwegian funds (ODIN Norge II), Swedish funds (ODIN Sweden II), Nordic funds (ODIN Norden II), European funds (ODIN Europa II), Global funds (ODIN Global II) other regional funds (ODIN Finland II) and sector funds (ODIN Eiendom).

The equity funds are managed according to an index independent 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 funds 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 fluctuations in the fund’s unit values. Measured in this way, investments 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 investment alternative. The Norwegian Mutual Fund Association recommends a minimum investment period of at least five years.

The funds’ performances are compared to their own benchmark 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 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 background 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 redemptions 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 Forvaltning AS. The various funds have in that respect no employees.

The fund’s accounts have been prepared on the basis of the going concern assumption.

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

Equity Fund

ODIN Norge II 29.68 %ODIN Sverige II 10.21 %ODIN Norden II 62.19 %ODIN Europa II 5.00 %ODIN Finland II 16.05 %ODIN Global II 5.44 %ODIN Eiendom 2.30 %

NOK Equity Fund

82 million ODIN Norge II479 million ODIN Sverige II

45 million ODIN Norden II80 million ODIN Europa II35 million ODIN Finland II

190 million ODIN Global II211 million ODIN Eiendom

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

ODIN Norge II had a profit of NOK 9 895 000 which has been appropriated as follows:

Appropriation NOKDividends distributed to unit holders: 3 831 000

Transfered to equity: 6 064 000

Total appropriated: 9 895 000


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

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

ODIN Sverige II had a profit of NOK 106 658 000 which has been appropriated as follows:




ODIN Norden II had a profit of NOK 26 068 000 which has been appropriated as follows:




ODIN Europa II had a profit of NOK 15 802 000 which has been appropriated as follows:




ODIN Finland II had a profit of NOK 5 130 000 which has been appropriated as follows:

Appropriation NOKTransfered to equity: 5 130 000

ODIN Global II had a profit of NOK 22 820 000 which has been appropriated as follows:

Appropriation NOKTransfered to equity: 22 820 000

ODIN Eiendom had a profit of NOK 33 733 000 which has been appropriated as follows:





Notes

FundODIN Norge II 0,49

ODIN Sverige II 0,44

ODIN Norden II 1,22

ODIN Europa II 0,46

ODIN Finland II 0,26

ODIN Global II 0,49

ODIN Eiendom 0,33

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 ecurities in the fund’s portfolio are determined on the ba- sisof the sales prices Bloomberg at 4.30pm on each day that the stock market is open. If no sales of the securities have 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 Six/Bloomberg 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: The funds, except ODIN Finland II and ODIN Global II, do 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 kroner (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.

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 0,9% p.a. ODIN Eiendom s’ management fee is 1 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.

The funds’ asset-turnover rates for 2012 were:


Fund commentary - ODIN Norge II

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 II 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 10.5 per cent for ODIN Norge II. The fund’s benchmark ended the same period up 21.0 per cent.

Strong end to a difficult year

-5%

0%

5%

10%

15%

20%

25%

30%

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

Performance 2012

Index ODIN Norge IIJan.12 Apr. 12 Jul.12 Oct.12


ODIN Norge II - Annual Report 2012ODIN Norge II

1) Benchmark

OsloBørs Fondindeksmeasured inNOK

Return in year of inception is calculated from the inception date

for both fund and benchmark.

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.

128,37% 135,33% -6,95%Total return

10,03% 10,41% -0,38%Since start 10/05/2004 (p.a.)

-5,70%

-0,44%

-2,78%

6,04%

Last 5 years (p.a.)

Last 3 years (p.a.) -6,48%

-2,93%

10,51% 21,01%2012 -10,50%

-28,60% -18,87%2011 -9,72%

25,05% 21,54%2010 3,50%

51,80% 72,10%2009 -20,30%

-50,27% -57,71%2008 7,45%

4,82% 10,10%2007 -5,28%

26,92% 33,13%2006 -6,21%

54,69% 39,59%2005 15,10%

48,97% 32,45%2004 16,52%

ODIN Norge II Index



99

10,638

-44,153

-66,287

0

63

0

-2,573

3

-60

0

10,626

0

381.Interest income

2.Dividend 3,848

3.Gain/loss on sale

4.Net change unrealised price gains/losses

5.Other portfolio revenues/costs

-15,883

22,950

2

6.Commission revenue from subscription and redemption

7.Costs of subscribing for and redeeming units

8.Administrative fee

9.Other revenues

10.Other costs

6

0

-1,044

21

-43

11.Tax cost 0

1.Net amount distributed to unit-holders during the year 3,831

2.Allocated for distribution to unit-holders 0

3.Transferred to/from accrued equity

8

5

6

7

8

Amount of shares 470,333

1.Shares 80,167

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

0

22

1,773

47,033

54,720

Total liabilities 64

11

9,10

11

11

123,475

0

0

9

107

4,195

77,182

79,786

568

771,819

NAV 31/12 174.13

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.

164.83

1,577,838

246.81

Equity as at 31/12/2011

Subscriptions in 2012

Redemptions in 2012

Dividends distributed to unit-holders in 2012


127,216,837

9,090,956

-63,067,465

81,897,316

2,593,007

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) 20,07 20,58

NOK 1000 NOK 1000



Local currency NOK 1000 NOK 1000 NOK 1000

0,01%2,43%835EnergyAker Solutions 1 154112,9017 619 1 989

0,03%2,58%62Information technologyAtea 2 04860,0035 166 2 110

0,01%0,81%-236Consumer staplesAustevoll Seafood 89728,5023 187 661

0,03%1,10%-1 458EnergyBW Offshore 2 3605,15175 143 902

0,05%1,03%-442Consumer discretionaryBWG Homes 1 28612,0570 011 844

0,04%1,52%-682EnergyDOF 1 92427,0046 017 1 242

0,03%4,77%1 944EnergyDet Norske Oljeselskap 1 96182,5047 339 3 905

0,07%2,89%225Consumer discretionaryEkornes 2 14092,5025 569 2 365

0,07%2,24%715EnergyElectromagnetic Geoservices 1 11913,06140 420 1 834

0,04%2,66%-80EnergyFarstad Shipping 2 255130,0016 731 2 175

0,04%1,96%-404EnergyGanger Rolf 2 008125,5012 777 1 604

0,01%3,48%664FinancialsGjensidige Forsikring 2 18379,4035 859 2 847

0,08%3,70%-1 020UtilitiesHafslund B 4 04645,3066 806 3 026

0,13%0,82%-720EnergyI.M. Skaugen 1 39018,8035 644 670

0,02%4,06%914IndustrialsKongsberg Gruppen 2 411124,5026 707 3 325

0,09%2,70%-9Information technologyNordic Semiconductor 2 21814,50152 399 2 210

0,01%3,63%-847MaterialsNorsk Hydro 3 81827,88106 560 2 971

0,02%3,83%553EnergyPetroleum Geo-Services 2 58495,3532 900 3 137

0,13%1,32%-110Health carePhotocure 1 18838,0028 388 1 079

0,03%1,53%-219Health carePronova Biopharma 1 47212,35101 440 1 253

0,14%2,22%231Information technologyQ-Free 1 58619,1095 150 1 817

0,01%1,74%-54Consumer discretionaryRoyal Caribbean Cruises (NOK) 1 479184,007 746 1 425

0,06%4,00%119Consumer staplesSalMar 3 15944,7073 328 3 278

0,11%0,50%-1 323MaterialsScana Industrier 1 7301,23330 381 406

0,01%4,01%1 319Consumer discretionarySchibsted 1 964235,5013 940 3 283

0,05%2,68%-474FinancialsSparebank 1 SMN, 2 66634,8062 987 2 192

0,04%4,49%-645FinancialsSparebank 1 SR-Bank 4 32237,2098 851 3 677

0,00%6,50%397EnergyStatoil 4 929139,0038 316 5 326

0,01%4,40%298EnergySubsea 7 3 301132,1027 250 3 600

0,00%2,48%327Telecommunication servicesTelenor 1 707112,2018 128 2 034

0,02%2,06%282IndustrialsTomra Systems 1 40450,2533 540 1 685

0,09%1,50%-200Information technologyVIZRT 1 42819,9061 686 1 228

0,02%1,36%104IndustrialsVeidekke 1 00744,0025 261 1 111

0,04%3,46%149IndustrialsWilh. Wilhelmsen Holding B 2 685157,0018 051 2 834

0,01%7,47%330MaterialsYara International 5 791273,8022 357 6 121

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


-5%

0%

5%

10%

15%

20%

25%


Performance 2012

Index ODIN Sverige II

Fund commentary - ODIN Sverige II

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 II, 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 20.3 per cent for ODIN Sverige II. The fund’s benchmark ended the same period up 15.9 per cent.

A good year for ODIN Sverige II

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


ODIN Sverige II - Annual Report 2012ODIN Sverige II

1) Benchmark

OMXSBCapGImeasured inNOK

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

both fund and benchmark.


Norway).











133,67% 109,27% 24,39%Total return

10,42% 9,01% 1,41%Since start 08/06/2004 (p.a.)

5,61%

11,09%

4,01%

10,64%

Last 5 years (p.a.)

Last 3 years (p.a.) 0,45%

1,60%

20,27% 15,92%2012 4,35%

-16,60% -14,04%2011 -2,56%

36,84% 36,08%2010 0,76%

47,08% 35,30%2009 11,78%

-34,88% -33,61%2008 -1,26%

-16,69% -9,85%2007 -6,84%

42,86% 35,99%2006 6,88%

31,97% 28,43%2005 3,54%

13,15% 9,13%2004 4,02%

ODIN Sverige II Index



524

31,160

25,550

-197,043

-125

0

0

-7,060

0

-153

-4,346

26,619

0

2211.Interest income

2.Dividend 18,413

3.Gain/loss on sale



21,332

72,255

-1,027




9.Other revenues

10.Other costs

26

0

-4,419

0

-96

11.Tax cost -48




8

5

6

7

8

Amount of shares 2,708,066

1.Shares 466,845


3.Warrants

0

0


2.Other receivables


2.Premium/discount

53

34

12,302

270,807

-610,085


11

9,10

11

11

651,503

0

0

0

2

8,985

431,044

-482,742

738

4,310,437

NAV 31/12 176.82







153.06

4,450,137

191.63



Redemptions in 2012



659,751,832

28,705,956

-298,850,028

478,830,167

873,788

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




SEK/NOK= 85,7900

1,00%6,88%8 989IndustrialsAddtech B 23 975185,00207 700 32 964

0,03%2,24%-606Consumer discretionaryAutoliv 11 337429,7029 110 10 731

1,13%3,54%-6 759IndustrialsB&B Tools B 23 71463,75310 000 16 954

0,90%1,35%-10 035IndustrialsBe Group 16 51216,70452 120 6 477

0,81%4,58%1 352IndustrialsBeijer Alma B 20 560117,00218 302 21 912

0,07%3,97%2 728MaterialsBoliden 16 293122,30181 290 19 021

1,07%0,84%-3 466EnergyConcordia Maritime B 7 46610,00466 300 4 000

0,81%4,04%1 835Consumer discretionaryDuni 17 50059,00382 000 19 335

0,31%6,31%21 725MaterialsHexpol 8 466341,00103 200 30 191

0,24%3,35%1 231IndustrialsIntrum Justisia 14 78896,50193 500 16 019

1,34%3,76%8 365Information technologyLagercrantz Group B 9 64171,00295 600 18 005

1,73%0,46%-2 424IndustrialsLammhults Design Group 4 61320,10126 900 2 188

0,31%4,00%4 877IndustrialsLoomis B 14 279104,00214 700 19 156

1,49%0,96%514IndustrialsMalmbergs Elektriska B 4 10150,00107 600 4 616

0,48%1,59%1 157Information technologyNolato B 6 43878,00113 500 7 595

0,02%7,64%-1 858FinancialsNordea (Sek) 38 42162,40683 000 36 563

0,17%2,46%-2 641IndustrialsPeab B 14 42631,00443 122 11 785

0,03%3,99%3 434IndustrialsSKF B 15 665163,70136 000 19 100

0,01%3,44%1 647IndustrialsSandvik 14 807103,90184 600 16 454

0,03%2,52%-199IndustrialsScania B 12 261134,80104 300 12 062

0,43%4,61%7 941IndustrialsSweco B 14 11472,50354 600 22 055

0,01%2,77%4 533FinancialsSwedbank 8 747127,20121 700 13 280

0,30%2,40%1 549IndustrialsSystemair 9 95287,00154 100 11 502

0,62%0,44%-6 117IndustrialsTranscom Worldwide A 8 2080,544 514 600 2 091

0,62%0,33%83IndustrialsTranscom Worldwide B 1 4840,573 204 900 1 567

0,10%3,64%5 444IndustrialsTrelleborg B 12 00680,70252 050 17 450

0,49%5,05%6 458Consumer discretionaryUnibet 17 722203,50138 500 24 180

0,02%5,85%-287IndustrialsVolvo B 28 31589,00367 094 28 029

0,42%4,50%7 470IndustrialsÅF B 14 092154,00163 200 21 561




-5%

0%

5%

10%

15%

20%


Performance 2012

Index ODIN Norden II

Fund commentary - ODIN Norden II

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 II 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 12.1 per cent for ODIN Norden II. The fund’s benchmark was up 15.4 per cent during the same time period.

Slightly less returnTruls Haugen,

Portfolio Manager



ODIN Norden II - Annual Report 2012ODIN Norden II

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.


Norway).











41,11% 55,79% -14,68%Total return

4,63% 6,00% -1,37%Since start 25/05/2005 (p.a.)

-3,78%

1,36%

-0,90%

7,57%

Last 5 years (p.a.)

Last 3 years (p.a.) -6,21%

-2,88%

12,14% 15,38%2012 -3,24%

-22,64% -15,90%2011 -6,75%

20,06% 28,40%2010 -8,34%

39,00% 26,82%2009 12,17%

-43,06% -39,51%2008 -3,55%

-6,26% 1,36%2007 -7,62%

31,56% 30,97%2006 0,59%

38,82% 22,79%2005 16,03%

ODIN Norden II Index



104

15,907

-44,829

-63,346

-74

23

0

-3,077

0

-95

-959

14,428

0

221.Interest income

2.Dividend 4,104

3.Gain/loss on sale



-6,497

29,577

-163




9.Other revenues

10.Other costs

263

0

-963

11

-97

11.Tax cost -189




8

5

6

7

8


1.Shares 43,764


3.Warrants

0

0


2.Other receivables


2.Premium/discount

0

2

1,508

44,085

-34,688


11

9,10

11

11

233,711

0

0

0

166

1,292

238,149

-12,695

699

2,381,491

NAV 31/12 100.90







98.46

3,041,429

135.47



Redemptions in 2012



234,470,399

3,397,059

-217,746,558

44,482,121

1,633,224

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




DKK/NOK= 0,9892

0,01%0,75%-453FinancialsAlm. Brand 78813,9024 400 335

0,00%2,75%-30Consumer staplesCarlsberg B 1 254553,502 237 1 225

0,00%1,45%-221IndustrialsFLSmidth & Co 866326,202 000 645

0,00%1,45%17IndustrialsG4S 62923,3827 910 645

0,01%1,43%-403IndustrialsNKT Holding 1 039202,903 170 636

EUR/NOK= 7,3794

0,01%2,44%158Consumer discretionaryAmer Sports 92611,2613 043 1 084

0,00%1,64%-307UtilitiesFortum 1 03514,146 980 728

0,01%3,04%87MaterialsHuhtamäki 1 26812,2614 970 1 354

0,00%2,50%114IndustrialsMetso 99932,064 704 1 113

0,00%1,27%145Consumer discretionaryNokian Renkaat/Tyres 42130,042 550 565

0,01%1,42%-213IndustrialsRamirent 8436,2113 740 630

0,00%3,26%302FinancialsSampo A 1 14624,338 070 1 449

0,00%1,81%-183MaterialsUPM Kymmene 9888,8112 390 805

0,01%2,08%-133IndustrialsYIT 1 05914,738 520 926

0,01%2,28%267FinancialsAker A 747212,004 780 1 013

0,01%1,93%-258Consumer staplesAustevoll Seafood 1 11528,5030 070 857

0,01%0,92%-860EnergyBW Offshore 1 2695,1579 500 409

0,02%0,68%-175Consumer discretionaryBWG Homes 47812,0525 130 303

0,00%1,75%60FinancialsDNB 71970,4011 059 779

0,01%2,53%519EnergyDet Norske Oljeselskap 60782,5013 652 1 126

0,01%1,34%26EnergyFarstad Shipping 569130,004 580 595

0,04%0,95%65IndustrialsInfratek 35918,6022 800 424

0,01%3,28%597IndustrialsKongsberg Gruppen 862124,5011 718 1 459

0,00%1,37%238Consumer staplesMarine Harvest 3715,12118 893 609

0,00%1,85%-105MaterialsNorsk Hydro 92627,8829 450 821

0,01%1,08%-131Health carePronova Biopharma 61012,3538 800 479

0,06%1,47%240FinancialsProtector Forsikring 41513,4048 911 655

0,02%1,57%-119FinancialsSparebank 1 SMN, 81934,8020 110 700

0,01%2,42%-144FinancialsSparebank 1 SR-Bank 1 21837,2028 880 1 074

0,00%1,84%52EnergyStatoil 765139,005 880 817

0,01%2,41%-130IndustrialsStolt Nielsen 1 201115,009 315 1 071

0,00%3,23%-58EnergySubsea 7 1 495132,1010 880 1 437

0,09%3,95%20IndustrialsWilh. Wilhelmsen Holding B 1 739157,0011 203 1 759

0,00%1,35%-5MaterialsYara International 607273,802 198 602

SEK/NOK= 85,7900

0,00%3,61%56Consumer discretionaryAutoliv 1 549429,704 354 1 605

0,00%2,47%292MaterialsBoliden 809122,3010 490 1 101

0,00%4,12%74Consumer discretionaryHennes & Mauritz B 1 760224,909 504 1 834

0,00%2,44%156FinancialsInvestor B 928169,807 440 1 084

0,00%0,98%100FinancialsKinnevik B 338134,403 800 438

0,01%1,32%92IndustrialsNCC B 497136,305 035 589

0,00%2,84%-17FinancialsNordea (Sek) 1 28162,4023 600 1 263

0,00%2,56%438IndustrialsSKF B 701163,708 110 1 139

0,00%1,57%95IndustrialsSandvik 605103,907 850 700

0,01%3,30%-93IndustrialsSecuritas B 1 56256,6530 235 1 469

0,00%1,44%186Consumer staplesSvenska Cellulosa B 455141,405 286 641

0,00%1,41%17Telecommunication servicesTele2 B 611117,606 230 629




SEK/NOK= 85,7900

0,00%4,81%48IndustrialsVolvo B 2 09389,0028 033 2 140




-5%

0%

5%

10%

15%

20%


Performance 2012

Index ODIN Norden II

Fund commentary - ODIN Europa II

Alexandra Morris,Portfolio manager

At the year-end, we could thus note that it had been a very strong year for ODIN Europa II, which achieved a return of all of 23.9 per cent for the year. This was 11,2 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 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 II



ODIN Europa II - Annual Report 2012ODIN Europa II

1) Benchmark

MSCI Europe net Index USDmeasured in NOK




Norway).











-5,84% -4,22% -1,63%Total return

-0,87% -0,62% -0,25%Since start 31/01/2006 (p.a.)

-2,65%

6,47%

-3,85%

2,10%

Last 5 years (p.a.)

Last 3 years (p.a.) 4,36%

1,20%

23,89% 11,17%2012 12,72%

-14,76% -9,63%2011 -5,13%

14,35% 5,98%2010 8,38%

24,10% 11,25%2009 12,85%

-41,69% -30,67%2008 -11,02%

-16,63% -1,00%2007 -15,63%

29,23% 17,80%2006 11,43%

ODIN Europa II Index



14

2,724

-15,605

-4,362

-202

47

0

-831

0

-133

-213

2,507

0

71.Interest income

2.Dividend 2,265

3.Gain/loss on sale



548

14,064

-102




9.Other revenues

10.Other costs

0

0

-679

0

-78

11.Tax cost -223




8

5

6

7

8


1.Shares 78,275


3.Warrants

0

0


2.Other receivables


2.Premium/discount

437

830

397

100,165

115,046


11

9,10

11

11

66,248

0

0

449

-7

1,205

103,703

116,065

53

1,037,028

NAV 31/12 78.96







65.42

1,281,089

79.67



Redemptions in 2012



67,842,331

2,038,601

-5,321,747

79,088,325

765,714

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




EUR/NOK= 7,3794

0,00%3,38%871Consumer staplesAnheuser-Busch InBev 1 80265,775 509 2 674

EUR/NOK= 7,3794

0,00%3,35%445Consumer discretionaryMichelin 2 20771,295 042 2 652

0,00%3,06%364Health careSanofi 2 05471,114 608 2 418

0,01%2,33%-312Consumer discretionaryValeo 2 15737,776 619 1 845

EUR/NOK= 7,3794

0,00%3,06%751Consumer discretionaryAdidas 1 66567,314 865 2 416

0,00%3,33%236FinancialsAllianz 2 401104,653 415 2 637

0,01%3,01%-373Consumer discretionaryAxel Springer 2 75632,2910 003 2 383

0,00%3,85%745MaterialsBASF 2 29771,285 782 3 041

0,00%2,47%510Health careBayer 1 44171,903 676 1 950

0,01%2,87%-57IndustrialsFraport 2 32643,897 006 2 269

0,01%3,37%329Consumer discretionaryHUGO BOSS 2 33379,804 520 2 662

0,04%3,25%252Consumer discretionaryLeoni 2 31728,5512 192 2 569

0,00%4,59%929Information technologySAP AG 2 70160,778 095 3 630

EUR/NOK= 7,3794

0,07%3,19%-229IndustrialsAstaldi 2 7535,0867 407 2 524

0,01%3,70%445IndustrialsPrysmian 2 48415,0726 338 2 929

0,01%2,24%449EnergyPetroleum Geo-Services 1 32795,3518 621 1 776

0,01%2,97%252EnergySubsea 7 2 095132,1017 767 2 347

CHF/NOK= 6,1101

0,02%2,61%1 164Information technologyAustriamicrosystems 90196,703 496 2 066

0,01%4,02%505Consumer discretionarySwatch Group 2 67178,706 605 3 176

0,01%2,83%-270EnergyTransocean (CHF) 2 50440,469 039 2 235

GBP/NOK= 9,0085

0,01%3,71%-109IndustrialsBunzl 3 0471 009,0032 321 2 938

0,00%2,28%601Consumer staplesDiageo 1 2031 803,5011 105 1 804

0,01%3,41%663Consumer discretionaryGKN 2 036230,00130 267 2 699

0,01%4,46%452IndustrialsIMI 3 0781 095,0035 783 3 530

0,00%3,59%829IndustrialsRolls-Royce Holdings 2 013884,0035 692 2 842

0,00%3,59%159Health careShire 2 6811 899,0016 601 2 840

0,00%2,90%380Health careSmith & Nephew 1 912685,0037 142 2 292

0,00%2,54%-73FinancialsStandard Chartered 2 0841 571,5014 209 2 012

0,00%3,45%414Consumer staplesUnilever 2 3152 379,0012 737 2 730

0,01%2,94%185IndustrialsWeir Group 2 1411 884,0013 706 2 326




USD/NOK= 5,5825

0,00%2,61%102Consumer staplesCoca-Cola Enterprises 3) 1 96131,3711 780 2 063



3) All turnover in Europe


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 Huhtamaki, 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 II.

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 13.5 per cent for ODIN Finland II. The fund’s benchmark was up 10.4 per cent during the same time period.

A good year for ODIN Finland II’s unit holders

-10%

-5%

0%

5%

10%

15%

20%

25%


Performance 2012

Index ODIN Finland II

Fund commentary - ODIN Finland II



ODIN Finland II - Annual Report 2012ODIN Finland II

1) Benchmark

OMXHelsinki CapGImeasured in NOK

Return in year of inception is calculated from the inception date

for both fund and benchmark.


Norway).











6,06% 3,51% 2,55%Total return

1,92% 1,12% 0,80%Since start 26/11/2009 (p.a.)

0,91% -0,09%Last 3 years (p.a.) 1,01%

13,53% 10,40%2012 3,13%

-28,24% -26,08%2011 -2,17%

26,15% 22,19%2010 3,97%

3,20% 3,80%2009 -0,60%

ODIN Finland II Index



4

1,952

-4,780

-16,494

-10

0

0

-482

0

-77

-284

0

0

01.Interest income

2.Dividend 1,510

3.Gain/loss on sale



-609

4,828

-37




9.Other revenues

10.Other costs

0

0

-313

0

-27

11.Tax cost -222

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



8

5

6

7

8


1.Shares 34,301


3.Warrants

0

0


2.Other receivables


2.Premium/discount

-1

1

341

32,642

4,141


11

9,10

11

11

35,699

0

0

0

2

517

38,741

4,744

27

387,412

NAV 31/12 106.05







93.41

358,031

130.18



Redemptions in 2012



36,189,459

0

-6,702,600

34,616,425

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




EUR/NOK= 7,3794

0,01%4,23%272Consumer discretionaryAmer Sports 1 19411,2617 638 1 466

0,05%3,59%-1 061IndustrialsCramo 2 3037,9021 300 1 242

0,00%4,56%-773UtilitiesFortum 2 35214,1415 130 1 579

0,02%6,46%359MaterialsHuhtamäki 1 87812,2624 719 2 236

0,00%1,08%-13IndustrialsKCI Konecranes 38925,691 980 375

0,01%2,05%-122FinancialsKiinteistösijoitus Citycon 8322,5737 460 710

0,01%0,39%-124IndustrialsLemminkainen 26014,241 290 136

0,11%2,66%74Consumer discretionaryMarimekko 84714,358 698 921

0,00%4,26%-30IndustrialsMetso 1 50432,066 230 1 474

0,00%4,93%-90Information technologyNokia 1 7972,9478 728 1 707

0,01%5,71%265Consumer discretionaryNokian Renkaat/Tyres 1 71030,048 910 1 975

0,01%4,71%-201FinancialsNordea (Eur) 1 8317,2630 430 1 629

0,02%1,61%100Consumer staplesOlvi A 45819,753 830 558

0,03%1,25%-330Health careOriola 7642,2226 490 434

0,01%4,36%251IndustrialsOutotec 1 26042,474 820 1 511

0,04%2,94%56IndustrialsPKC Group 96115,438 926 1 016

0,01%5,22%284FinancialsPohjola Bank 1 52211,2421 780 1 807

0,01%0,38%-373IndustrialsPoyry 5052,936 140 133

0,03%4,61%-675IndustrialsRamirent 2 2706,2134 810 1 595

0,09%3,53%-333Consumer discretionaryRapala 1 5564,8434 260 1 224

0,01%2,26%-1 363MaterialsRautaruukki 2 1445,9317 860 782

0,00%5,11%236FinancialsSampo A 1 53224,339 851 1 769

0,00%1,19%-464Consumer discretionarySanoma 8777,427 550 413

0,00%2,35%-81MaterialsStora Enso R 8965,2321 112 815

0,03%1,69%21FinancialsTechnopolis 5653,7920 940 586

0,01%5,09%-113Telecommunication servicesTeliaSonera (EUR) 1 8765,1546 423 1 763

0,01%1,36%-47MaterialsTikkurila 51914,644 370 472

0,00%2,76%-281MaterialsUPM Kymmene 1 2358,8114 682 954

0,00%4,29%463IndustrialsWärtsilä 1 02332,706 160 1 486

0,01%4,43%-351IndustrialsYIT 1 88614,7314 120 1 535




0%2%4%6%8%

10%12%14%16%


Performance 2012

Index ODIN Global II

Fund commentary - ODIN Global II

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 Global IIOddbjørn Dybvad and Vegard Søraunet

Portfolio managersIn total, the portfolio produced a return of 13.7 per cent. This was 6.5 percentage points better than its benchmark, the MSCI World Net Index.



ODIN Global II - Annual Report 2012ODIN Global II

1) Benchmark

MSCIWorld Net Indexmeasured in NOK




Norway).











18,90% 14,64% 4,26%Total return

7,56% 5,92% 1,64%Since start 16/08/2010 (p.a.)

13,66% 7,18%2012 6,48%

-7,53% -4,02%2011 -3,51%

13,13% 11,44%2010 1,69%

ODIN Global II Index



-15

4,574

-391

-15,395

154

0

0

-1,528

0

-75

-547

0

0

51.Interest income

2.Dividend 4,353

3.Gain/loss on sale



561

20,257

-239




9.Other revenues

10.Other costs

13

0

-1,614

0

-66

11.Tax cost -449

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



8

5

6

7

8


1.Shares 188,652


3.Warrants

0

0


2.Other receivables


2.Premium/discount

249

816

387

158,999

5,528

Total liabilities 1,066

11

9,10

11

11

169,975

0

0

432

6

872

163,411

5,850

331

1,634,115

NAV 31/12 118.89







104.62

1,495,187

113.15



Redemptions in 2012



170,953,978

5,000,000

-9,734,923

189,038,576

0

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




AUD/NOK= 5,7909

0,03%3,21%100IndustrialsALS 5 97410,9395 958 6 074

EUR/NOK= 7,3794

0,01%3,43%790Consumer discretionaryMichelin 5 70271,2912 340 6 492

EUR/NOK= 7,3794

0,00%3,17%1 032MaterialsBASF 4 96271,2811 395 5 994

0,01%4,82%1 500Consumer staplesHenkel 7 60451,7223 853 9 104

EUR/NOK= 7,3794

0,02%5,04%2 648Consumer staplesKerry Group 6 88639,9832 314 9 534

KRW/NOK= 0,5223

0,03%2,71%1 522Consumer discretionaryHyundai Motor Pref. 2 3 59675 600,0012 961 5 117

0,01%5,73%3 772Information technologySamsung Electronics Pref. 7 063852 000,002 435 10 835

EUR/NOK= 7,3794

0,00%2,94%393IndustrialsPhilips Electron 5 17019,8637 957 5 563

0,01%3,52%-1 015MaterialsNorsk Hydro 7 67327,88238 824 6 658

ZAR/NOK= 0,6557

0,00%3,54%659Telecommunication servicesMTN Group 6 03017 828,0057 217 6 689

CHF/NOK= 6,1101

0,00%3,08%-164IndustrialsABB (CHF) 5 99418,8150 724 5 830

0,05%1,44%433FinancialsSchweizerische Natl-V 2 28141,1510 796 2 714

0,00%3,19%1 530MaterialsSyngenta 4 494367,902 680 6 024

TRY/NOK= 3,1225

0,01%3,77%392FinancialsTurkiye Garanti Bankasi 6 7429,38243 555 7 134

GBP/NOK= 9,0085

0,00%2,80%1 522IndustrialsRolls-Royce Holdings 3 768884,0066 428 5 290

0,00%2,86%-331FinancialsStandard Chartered 5 7331 571,5038 156 5 402

0,02%3,30%1 027IndustrialsWeir Group 5 2171 884,0036 791 6 244




USD/NOK= 5,5825

0,00%3,65%523Industrials3M 6 37492,3213 382 6 897

0,01%3,11%-199Health careAgilent Technologies 6 08040,2126 202 5 882

0,00%0,88%458Consumer staplesAnheuser-Busch ADR. 1 20586,893 429 1 663

0,00%2,73%304Health careCovidien 4 86256,5916 353 5 166

0,00%2,79%-454Information technologyEMC Corp 5 72525,0937 631 5 271

0,01%2,89%634EnergyEnsco PLC 4 82257,7516 924 5 456

0,00%2,80%-40EnergyHalliburton 5 33834,1627 785 5 299

0,00%2,88%357IndustrialsIllinois Tool Works 5 08560,3716 146 5 441

0,03%3,04%559IndustrialsNordson Corp 5 18862,2516 537 5 747

0,00%4,78%295Information technologyOracle 8 74433,2748 662 9 039

0,01%1,92%141IndustrialsParker Hannifin 3 48184,397 688 3 622

0,03%2,10%-610Consumer discretionarySotheby's 4 57132,5221 818 3 961

0,00%0,95%16IndustrialsStanley Black & Decker 1 77572,604 417 1 790

0,00%3,38%40EnergyTenaris ADR 6 35441,3527 697 6 393

0,01%3,35%326Health careVarian Medical Systems 6 00270,0516 183 6 328




-10%

-5%

0%

5%

10%

15%

20%


Performance 2012

Index ODIN Eiendom

Fund commentary - ODIN Eiendom

A strong year for ODIN Eiendom

2012 ended with a rise of 18.6 per cent for ODIN Eiendom. 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, 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



ODIN Eiendom - Annual Report 2012ODIN Eiendom

1) Benchmark

Carnegie SwedenReal Estate Indexmeasured in NOK

The benchmark index is not adjusted for dividend.


Norway).











430,90% 234,26% 196,64%Total return

14,47% 10,26% 4,21%Since start 24/08/2000 (p.a.)

16,12% 13,25%Last 10 years (p.a.)

5,71%

12,02%

5,77%

14,60%

Last 5 years (p.a.)

Last 3 years (p.a.)

2,88%

-2,58%

-0,05%

18,59% 13,44%2012 5,14%

-13,55% -13,89%2011 0,34%

37,30% 54,33%2010 -17,03%

33,18% 13,27%2009 19,91%

-29,52% -22,43%2008 -7,09%

-14,92% -28,36%2007 13,44%

45,41% 45,25%2006 0,15%

35,16% 23,21%2005 11,95%

30,49% 30,99%2004 -0,50%

55,02% 56,26%2003 -1,24%

ODIN Eiendom Index



240

5,028

14,592

-46,950

4

0

0

-2,034

0

-246

-609

4,155

0

1191.Interest income

2.Dividend 5,456

3.Gain/loss on sale



2,060

28,511

-255




9.Other revenues

10.Other costs

7

0

-2,020

0

-60

11.Tax cost -85




8

5

6

7

8


1.Shares 203,074


3.Warrants

0

0


2.Other receivables


2.Premium/discount

0

9

8,137

55,893

-15,769


11

9,10

11

11

172,848

0

0

0

2

6,410

54,669

-12,745

148

546,691

NAV 31/12 377.59







327.63

509,667

386.23



Redemptions in 2012



179,111,786

26,425,919

-23,866,567

211,044,707

791,281

1

Lower risk













Higher risk

2 3 4 5 6 7


NOK 1000 NOK 1000




EUR/NOK= 7,3794

0,16%4,59%-876FinancialsKiinteistösijoitus Citycon 10 5732,57511 295 9 697

0,13%4,51%256FinancialsSponda 9 2693,59359 557 9 525

0,45%4,45%-623FinancialsTechnopolis 10 0243,79336 131 9 401

0,07%2,83%3 598FinancialsEiendomsspar (U) 2 383152,0039 347 5 981

0,90%4,29%1 378FinancialsNorthern Logistic Property 7 66925,70351 990 9 046

0,31%6,85%-984FinancialsNorwegian Property 15 4498,501 701 797 14 465

0,18%8,18%2 866FinancialsOlav Thon Eiendomsselskap 14 401890,0019 401 17 267

0,36%2,86%-706FinancialsSelvaag Bolig 6 74817,90337 500 6 041

SEK/NOK= 85,7900

0,38%8,59%5 396FinancialsBalder B 12 72536,90572 427 18 121

0,07%4,63%1 089FinancialsCastellum 8 68592,75122 840 9 774

0,88%5,85%707FinancialsCorem Property 11 62919,90722 570 12 336

0,79%8,37%1 018FinancialsDiös Fastigheter 16 63934,80591 408 17 656

0,06%2,56%1 187FinancialsFabege 4 21565,8595 629 5 402

0,39%3,73%1 043FinancialsHeba Fastigheter B 6 82464,00143 268 7 866

0,06%4,04%1 413FinancialsHufvudstaden A 7 10982,10120 996 8 522

0,07%2,88%-112Consumer discretionaryJM Bygg 6 181116,5060 720 6 069

0,22%4,29%341FinancialsKlövern 8 70825,60412 054 9 050

0,09%4,38%1 919FinancialsSagax A 7 328188,0057 333 9 247

0,08%3,83%3 833FinancialsWallenstam B 4 24379,35118 639 8 076

0,14%4,52%2 088FinancialsWihlborgs 7 443101,00109 998 9 531



U) Unlisted stocks


Auditor’s Report for 2012

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 explana-tory information. The financial statements are showing the following results:

ODIN Norge II NOK 9 895 000 ODIN Finland II NOK 5 130 000 ODIN Sverige II NOK 106 658 000 ODIN Global II NOK 22 820 000ODIN Norden II NOK 26 068 000 ODIN Eiendom NOK 33 733 000ODIN Europa II NOK 15 802 000

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 accord-ance 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 Auditing. 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 circumstanc-es, 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 management, as well as evaluat-ing 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 Direc-tors report concerning the financial statements and the going concern assumption, and the proposal for the allocation of the profit/cover-age 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 accordance with the International Standard on Assurance Engagements ISAE 3000, “Assurance Engagements Other than Audits or Reviews of His-torical 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.


Notice of election meeting

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.

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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