ODIN Fund Management

ODIN Fund Management
Knowledge and talent attuned
ODIN’s management
team: From the left:
Tomas Ramsälv, Truls
Haugen, Vegard Søraunet, Jarl Ulvin, Håvard
Opland, Oddbjørn
Dybvad, Nils Petter
Hollekim. In front:
Alexandra Morris.
ODIN Fund Management
is a Norwegian value investor company that specialises in managing
equity funds, structured as Undertakings for Collective Investment
in Transferable Securities (UCITS).
Our clients are highly qualified institutional investors, intermediaries and independent financial advisors primarily located in the
Nordic region, the United Kingdom and the Netherlands.
In brief
ODIN Fund Management (ODIN Forvaltning AS) is a leading Norwegian
fund management firm with expertise in value-oriented investments
and an established track record of
delivering long-term returns.
Disciplined portfolio construction
Our portfolio construction is guided by our goal of
providing investors with attractive long-term returns.
ODIN's fund managers use an opportunistic investment approach that is unrestricted by country or sector
weights within the given reference indices. Our funds
aim to outperform reference indices over the long term.
Nordic insight
ODIN has keen insight into the Nordic markets, particularly in Norway, Sweden and Finland. Both individually
and collectively, these markets offer investment characteristics that distinguish them from most other European
markets. The region offers interesting opportunities in
sectors such as raw materials, shipping, energy, forestry,
in addition to world-class telecommunications and technology companies.
Broader application
The ODIN Fund Management team has transferred their
investment approach for the Nordic markets to broader
mandates across European and global markets, thereby
facilitating sound portfolio diversification through a wide
range of funds. Institutional investors in Europe may
also diversify their portfolios with institutional funds –
ODIN Europa II, ODIN Norden II, ODIN Norge II, ODIN
Sverige II, ODIN Finland II, ODIN Global II and ODIN
Eiendom – which share the same investment mandates
as ODIN’s retail funds.
Clients
ODIN’s target market includes pension managers, wealth
managers, product providers, fund platform and wrap
service providers, independent financial advisors and
others.
Parent company
ODIN Fund Management’s parent company, SpareBank
1 Gruppen AS, is a strong and stable organisation, jointly
owned by five independent Norwegian banks, the Norwegian Federation of Trade Unions and affiliated unions.
Hands-on management
As a wholly-owned subsidiary of SpareBank 1 Gruppen,
ODIN Fund Management has expanded organically. The
day-to-day supervision of the business is entirely the responsibility of the management committee, all members
of which are executives working within the company.
Nordic presence
More than 80 employees, including 12 investment professionals, work in our Oslo head office. We also have
offices in Helsinki, Stockholm, Gothenburg and Karlstad.
From ancient times through the Viking Era and
on to the Age of Information, the Nordic people
have always been a seafaring culture and possessed a pioneering spirit.
At ODIN, we believe that employing a clear, disciplined and bottom-up investment style delivers
high return on investment in the long run.
A solid platform in the Nordic region
Our History
The ring, the horse and the ravens
Our first fund, ODIN Norden is a diversified Nordic equity fund.
Soon afterwards, we also launched three country funds, ODIN
Finland, ODIN Norge and ODIN Sverige.
First and foremost was his horse, Sleipnir (the runner).
Sleipnir had eight legs, symbolising his ability to outrun all
other horses. Sleipnir carried Odin to every corner of the
world, over land, through the air and across water, on his
many quests to acquire new knowledge.
ODIN Fund Management was founded in 1990 with the
ambition of applying a value-oriented investment philosophy to
the Nordic market. We have stayed faithful to this investment
philosophy ever since.
The next stage of our development was the launch of our sector
funds. The first of these was the ODIN Maritim fund in 1994,
focusing on the global shipping industry. The ODIN Offshore
fund came next in 2000, focusing on global oil and offshore
services. In 2000, we also launched ODIN Eiendom, a fund
focusing specifically on the Nordic property and real estate
sector.
From 2004, ODIN assumed responsibility for two European and
two global fund mandates, with external management provided
by Franklin Templeton. This process was completed in 2007, and
established ODIN as a fund manager with a genuine global
outlook underpinned by a strong Nordic foundation.
Our heritage
ODIN Fund Management takes its name from the Norse god
Odin, the leader and most dignified of all the Norse deities.
From his throne, Lidskjalv, in Valhalla, Odin sees the end of
the world.
Traditionally, Odin was the god favoured by the elite in
Norse society. Among the Norse gods, Odin was the thinker
and strategist. His actions may have seemed unorthodox at
times, but they were always well thought out. Odin often
took calculated risks, and despite setbacks along the way,
ultimately he always triumphed.
Odin also represented intellect in a wider perspective than
planning and strategy. Odin was the god of all knowledge
and wisdom, as well as poetry and artistic inspiration.
In addition to his qualities as a thinker and inspirational
strategist, Odin had several powerful aides at his side.
Another precious possession Odin carried with him was his
ring, Draupnir (the dripper). Draupnir was fashioned of pure
gold, and once every ninth night it dripped eight perfect
copies of itself. Draupnir was a symbol of wealth and
prosperity.
Odin’s two ravens, Hugin (thought) and Munin (memory),
are also important. They flew all over the world, returning to
Odin every night with information.
Our identity
Our logo is a combination of the name ODIN, the ring
Draupnir and the horse Sleipnir. The two ravens, Hugin and
Munin, are also recurring elements in our visual profile.
Not only do they symbolise our Nordic heritage, but they
also point to the specific values and ideals we carry with us
in our work:
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The name Odin symbolises wisdom, knowledge and the
ability to both make plans and inspire others to follow.
Like Odin, we tirelessly search for new knowledge and
experience.
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Draupnir symbolises wealth and prosperity. Inspired by
Draupnir, we constantly strive to create wealth for our
clients.
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Sleipnir symbolises the ability to move faster and further
than all rivals. Inspired by Sleipnir, we always seek to be
better than our competitors.
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Hugin and Munin symbolises updated information from
all over the world. Inspired by Hugin and Munin, we
ensure that we have the latest data and information on
current events, developments and trends.
ODIN’s logotype is a combination of
the name ODIN, the ring Draupnir and
an ancient drawing of Sleipnir, the
mythical horse of the Norse god Odin.
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Our investment philosophy
ODIN is a boutique manager specializing in focused,
bottom-up value investing.
The pursuit of value
Expert craftsmanship
ODIN’s fund managers adhere to a bottom-up, value-oriented
investment process. An approach that was first formulated in
the 1930s by Benjamin Graham, a professor at Columbia University. Value-oriented investment is based on two fundamental principles:
Discipline and structure are vital. However, constraint by
traditional market benchmark configurations, or rigid model
dependencies can undermine growth potential.
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Evaluate the intrinsic value of any given company.
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Only invest in those companies that are clearly undervalued by the market.
These fundamentals remain valid even if the methodology for
implementing the strategy varies over time. The key factor is
the ability to make the best estimate of the intrinsic value of
any given company.
The so-called efficient market hypothesis implies that all
known information is immediately reflected in the price of a
stock, and consequently that further analysis is futile.
Many proponents of this view therefore claim that a passive
management strategy, where little or no insight is necessary, is
the most efficient option.
We disagree.
Unlike passive investors, insights gained through in-depth
analysis enable us to make an informed estimate of the
fundamental, long-term value of a company. This is crucial in
order to identify good companies that are undervalued.
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If asset management was all about crunching numbers and
programming models, computers could manage assets on their
own. Regrettably, computers tend not to exercise sound
judgment.
ODIN is not a techno-bureaucratic asset management factory;
rather, we are an investment management workshop. We
consider asset management to be more a craft than a science.
As such, we believe expert craftsmen need freedom to perform
at their best.
Strategy drift is an expression used to describe how some asset
managers attempt to adjust their investment process to
market conditions. By contrast, our philosophy resists the
latest fads and fashions and we are constantly alert to ensure
fear or greed do not cloud our judgment and steal our attention away from the fundamentals of individual companies.
Our value proposition is not about predicting the unpredictable or eliminating risk. We have however experienced
firsthand how remaining faithful to an investment philosophy
through fluctuating market conditions, and being consistently
diligent in the investment process, delivers substantial returns
in the long run.
Our proposition is simply to stay true to this tried and tested
investment approach in the future.
The Nordic investment landscape harbours
undervalued Nordic companies that have
great potential to flourish in the long-term.
Through in-depth company analyses in industries and markets that we know
and understand, it is possible to discover undervalued companies that we believe will be tomorrow’s winners.
Navigating for the best outcome.
We hope that, as an investor, you
too will appreciate the benefits of
working with a partner who has a
consistent approach to investment – no matter which way the
trade winds blow.
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In the Nordic region, we have experience in
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investing for the long-term, especially in tough
times when cold financial winds are blowing.
Our investment process
We have total freedom to invest in only the best-run businesses
that are well-positioned in promising sectors and available with
compelling value propositions.
The advantages of freedom
We are free to disregard stress from short-term expectations, and we do not allow ourselves to be diverted from our
long-term, fundamental perspective on investments.
Similarly, we are free to remain immune from fluctuating
market sentiment.
What is a well-positioned business?
Portfolio managers at ODIN are evaluated on five year
running periods, which correspond to the recommended
minimum investment horizon in our funds. Thus, freedom
enables us to maintain consistent focus on thorough,
independent, fundamental analysis of each individual
investment opportunity.
We also favour businesses with an entrenched position in
their value chain. This enables consistently high margins on
core activities. Key indicators of businesses that are mindful
of good positioning include strong brands, technologically
advanced products, patents, control of scarce resources,
advanced processes, and continuous focus on R&D.
What is a well-run business?
What is a compelling value proposition?
We do not define a business as being well-run using simple
computer algorithms based on reported results. Instead, we
rely on in-depth, fundamental analysis and sound judgement.
An important element in our analysis is the level of capital
discipline. We favour businesses with documented strong
capital discipline over time and across cycles. Consistently
high return on capital employed, high dividend yield, solid
balance sheets and substantial cash flow from core activities
are among the key indicators.
In addition to being well-run, the business also needs to be
well-positioned. One important factor in evaluating
business positioning is the long-term growth opportunities
of the business sector as a whole.
We estimate a reasonable long-term value of a company
(target price) based upon our independent, fundamental
analysis.
We only invest where there is a comfortable margin
between our own long-term valuation and the current
market price.
Other key indicators are the level of competence and
experience in the management team, and whether the
various governance bodies maintain a long-term shareholder perspective.
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The investment process
Like the Sun, our approach to investment is grounded in consistency.
Investing for long-term value requires
single-mindedness and unwavering
devotion to achieving positive results.
Long-term growth, as well as
revaluation of an undervalued
company, can yield good returns.
Long-term value
The equity market exists in an arena where information,
expectations and psychology interact.
The shorter the period of investment, the greater the risk that
psychology plays a predominant role and that price movements
become more unpredictable. Phases of general rise and decline
are both reinforced by a herd mentality amongst investors. For
individual companies, short-term factors, such as size, current
media exposure and the most recent price movements of the
share tend to affect the immediate price trend disproportionately.
The longer the period of investment, the greater the probability that fundamental factors such as company profitability,
financial stability and leadership will shape the price trend.
ODIN fund managers set and keep their sights on the longterm investment perspective. This is particularly important in
turbulent times.
Over a longer period of time, the likelihood of the company
obtaining pricing that reflects its fair value is enhanced. This is
because information relevant to valuation tends to become
more visible over time. By investing in companies that we
deem to be undervalued, and then waiting for the market to
rectify incorrect valuations, we are able to create good
prospects for additional returns.
On the one hand, long-term growth can yield good return. On
the other, the revaluation of an undervalued company can also
contribute to a good return. Benjamin Graham called this
investing with both belt and braces.
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Consistency of approach
We manage all of our funds on the basis of the same
value-oriented investment philosophy. This, we believe,
is one of our strengths. We can thereby create the best
pre-conditions for our fund managers to support one
another, as well as critically assess companies and the
market view.
History has shown that the market rewards different ways
of managing investments over different time periods.
Should a fund manager then change his or her strategy?
This may be desirable but, in practice, it is difficult.
Anticipating market swings that may not necessarily stem
from fundamental economic factors is risky.
To change investment tools and approach to valuation from
one moment to the next can create a lack of clarity. We do
not believe that market timing or switching investment
strategies contribute to long-term success.
Clarity is a cornerstone of our strategy. We hope that, as an
investor, you too will appreciate the benefits of working
with a partner who has a consistent approach to investment
– no matter which way the trade winds blow.
The clarity and consistency of ODIN’s
strategy reap rewards for investors.
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Investment team
The ODIN Fund Management team
consists of 12 investment professionals – seven portfolio managers
and three analysts. All our portfolio
managers are also analysts, both geographically and at the sector level,
and contribute their knowledge and
expertise across all funds. This lean,
matrix organisation supports fast
and effective decision-making.
Ja rl U lv in, a fa
Chief Investment Officer
N il s Pe tte r Hol lek im
Senior Portfolio Manager
ODIN Sverige, ODIN Eiendom I(Real
Estate), ODIN Norge, ODIN Sverige II,
ODIN Norge II, ODIN Eiendom
Jarl Ulvin has been responsible for the
day–to-day fund management at ODIN
since 2005, and serves as Deputy Managing Director of ODIN Forvaltning AS.
Jarl has extensive fund management experience, and is a specialist in consumer
and Norwegian shares. Before joining
ODIN in 2000, he worked as a portfolio
manager and analyst at major insurance
and securities companies. Jarl received
Bachelor’s and Master’s degrees in Business Administration from Texas Christian University.
Nils Petter Hollekim has been with
ODIN since 1996. Nils Petter has more
than 20 years experience as an investment adviser, analyst and portfolio
manager, and has held posts as managing director in two companies. He is
ODIN’s specialist in engineering and
real estate management companies.
Nils Petter holds a Master’s degree in
Economics from Karlstad University
in Sweden.
Tr u l s Ha u g e n , a fa
Ve g a rd S ø ra un e t , a fa
Senior Portfolio Manager
A lex a nd ra Mo r r i s , a fa
Senior Portfolio Manager
ODIN Finland, ODIN Norden, ODIN
Finland II, ODIN Norden II
ODIN Global, ODIN Global smb* , ODIN
Emering Market, ODIN Global II
ODIN Europa, ODIN Europa smb* ODIN
Europa II
Truls Haugen joined ODIN in 1996.
His areas of specialty include the metal and forestry sectors and industrial
companies. He is also responsible for
analysing Finnish shares and small
and midcap equities (SMEs) in Europe. Prior to joining ODIN, Truls
worked as a portfolio manager and
analyst. He holds a Bachelor’s degree
in Engineering and Master’s degree in
Economics from the Norwegian
School of Management.
Vegard Søraunet joined ODIN as an
analyst in May 2006 and, together
with Oddbjørn Dybvad, manages
ODIN’s global funds. His experience
includes work in auditing, financial
services and accounting for one of the
world’s largest accounting and consultant companies. Vegard received a
Master’s degree in Economics and
Business Administration with a specialty in finance and accounting from
the Norwegian School of Economics.
Alexandra Morris joined ODIN in
2004 and is our in-house health sector
specialist. Before joining ODIN, Alexandra worked as vice president of investor relations, senior analyst and
controller at various pharmaceutical
and information technology companies. Alexandra holds a Master’s degree in Economics from the University
of St. Gallen in Switzerland.
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Senior Portfolio Manager
Fund overview
The following provides an overview of the funds managed by
ODIN Forvaltning AS. A selection of these funds are registered for
sale and marketing in the countries where ODIN Forvaltning AS
operates. Please contact us for additional information.
Nordic funds
Ja rle S j o
ODIN Finland
ODIN Norden (Nordic)
ODIN Norge (Norway)
ODIN Sverige (Sweden)
Risk profile: High (ODIN Finland, ODIN Norge, ODIN Sverige), Moderate (ODIN Norden)
ODIN Maritim, ODIN Offshore
European funds
Senior Portfolio Manager
Jarle Sjo recently joined ODIN to manage our established sector funds,
ODIN Offshore and ODIN Maritim.
Jarle has more than 15 years of experience focused specifically on the shipping and offshore sectors, as both analyst and portfolio manager. Jarle has a
Master of Science degree in Finance
from the Norwegian School of Economics and Business Administration.
ODIN Europa
ODIN Europa smb*
ODIN Robur Øst Europa (Fund of Funds, Sub-funds managed by
Swedbank Robur Fonder AB)
Risk profile: Moderate
Global funds
ODIN Global
ODIN Global smb*
ODIN Emerging Markets
Risk profile: Moderate
Sector funds
ODIN Eiendom/Fastighet I (Property)
ODIN Maritim
ODIN Offshore
Risk profile: High
Money market funds
O d d b j ø r n D ybva d
Senior Portfolio Manager
ODIN Global, ODIN Global smb* , ODIN
Emering Market, ODIN Global II
Oddbjørn Dybvad joined ODIN in
2005; with Vegard Søraunet he is responsible for managing ODIN’s global
funds. Oddbjørn has previously
worked as a fund analyst at a Norwegian savings and life insurance company. He holds a Master’s degree in
Business Administration with a specialty in Finance from the Norwegian
School of Economics and Business Administration.
ODIN Kort Obligasjon
ODIN Obligasjon
SpareBank 1 Pengemarked
ODIN Pengemarked
ODIN Penningmarknad SEK
ODIN MoneyMarket EUR
(Management outsourced to Storebrand Kapitalforvaltning AS)
Risk profile: Low
Institutional fund range
ODIN Norge II
ODIN Sverige II
ODIN Norden II
ODIN Europa II
ODIN Finland II
ODIN Global II
ODIN Eiendom/Fastighet (Property)
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Important notice to investors
The information in this document should be regarded as
general information and is intended and directed to professional investors and intermediaries only. Non-professional
investors shall not take this information into account.
uted directly or indirectly to investors falling under the
jurisdiction of the USA.
To the extent that this communication is capable of having
an effect in the UK or the Netherlands it is directed only at
the classes of investor at whom it may lawfully be directed
under the relevant legislation, including persons authorised
under the FSMA or the Dutch Act on Financial Supervision
to carry on designated investment business in the either
jurisdiction. Other persons should not rely or act upon this
communication.
The content of this document has not been approved by a
person authorised by the UK Financial Supervisory Authority (“FSA”) and such approval may be required by Section 21
UK Financial Services and Markets Act 2000 (“FSMA”), save
where this document is directed at or issued to the types
of person referred to above on the UK market. This document is exempt from the general restriction in Section 21
FSMA on the communication of invitations or inducements
to engage in investment activity on the grounds that it is
being issued to and/or directed at only persons authorised
under FSMA to carry on designated investment business
in the UK. This document shall not, on the Dutch market,
be regarded as such document referred to in Section 4:62
in the Dutch Financial Supervision Act (“Act”) or any other
legal document referred to in the Act. Consequently, before
investing all investors despite market are advised to consult
each fund’s legal documents for relevant jurisdiction which
can be ordered from ODIN Forvaltning AS (“ODIN Fund
Management”).
In connection with an investment in ODIN Fund Management’s funds, it is your responsibility as an investor to be
aware of, acknowledge and observe all applicable laws and
regulations (including possible tax consequences) in your
jurisdiction.
Historical returns are no guarantee of future returns. Future
returns will, among other things, depend on market trends,
the skill of the manager, the risk level of the fund and
the costs associated with subscription, management and
redemption. The return may be negative as a consequence
of trading losses implying that an investor may not get back
the amount invested.
All the funds presented in this material are Norwegian
registered equity mutual funds (UCITS), construed under
the law of contract as common funds and managed by the
management company ODIN Forvaltning AS (reg. nr. 957
486 657). The funds as well as ODIN Fund Management are
registered with and under the supervision of the Norwegian
FSA (Finanstilsynet).
Please observe that as a result of money laundering regulations, additional documentation for identification purposes
will be required prior to subscription and, if required, prior
to redemption.
For further information on the funds please see the simplified prospectus and the full prospectus of each respective
fund. Investors should become familiar with the prospectuses prior to subscription of fund units. Prospectuses and
other information is available upon request from ODIN
Fund Management, or for UK investors on the website www.
ODINfundmanagement.com.
The following funds are aimed at institutional clients and intermediaries and are recognised by the respective Financial
Supervisory Authority for distribution in each jurisdiction:
Please note that the funds cannot be marketed or distrib-
Asset class Country/region
ODIN Norden
ODIN Finland
ODIN Sverige
ODIN Norge
Broad mandates
ODIN Europa
ODIN Europa SMB**
ODIN Emergin Market
ODIN Global
ODIN Global SMB**
Specialist mandates
ODIN Eiendom I*
ODIN Offshore
ODIN Maritim
Institutional
ODIN Finland
ODIN Sverige II
ODIN Norge II
ODIN Norden II
ODIN Europa II
ODIN Global II
ODIN Eiendom
Norway Sweden Finland UK Netherlands
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Contact details
ODIN Fund Management
Branch to ODIN Forvaltning AS, Norway
P.O. Box 238
S-101 24 Stockholm
Sweden
Cecilia Seddigh
Head of Business Development UK
Mobile: +46 708 57 14 31
Direct: +46 8 407 14 35
[email protected]
Lars J. Sørbo
CCO - Chief Commercial Officer
Mobile: +47 97 51 45 90
Direct: +47 22 01 0 269
[email protected]
www.ODINfundmanagement.com
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*Small and mid cap companies
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