Audited Annual Report 2012 Nordea 1, SICAV Socie´te´ d’Investissement a` Capital Variable a` compartiments multiples Investment Fund under Luxembourg Law 562, rue de Neudorf L-2220 Luxembourg Grand Duchy of Luxembourg R.C.S. number: Luxembourg B-31442 No subscriptions can be received on the basis of these fi nancial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual report and the most recent semi-annual report, if published thereafter. Table of Contents Report of the Board of Directors 2 Report of the Investment Manager 3 Report of the Réviseur d’Entreprises agréé 4 Statement of Net Assets as of 31/12/2012 6 Statement of Operations and Changes in Net Assets for the year ended 31/12/2012 16 Statement of Statistics as at 31/12/2012 34 Statement of Investments in Securities and Other Net Assets as of 31/12/2012 Nordea 1 - African Equity Fund 44 Nordea 1 - Brazilian Equity Fund 46 Nordea 1 - Climate and Environment Equity Fund 47 Nordea 1 - Danish Bond Fund 48 Nordea 1 - Danish Kroner Reserve 49 Nordea 1 - Danish Mortgage Bond Fund 50 Nordea 1 - Emerging Consumer Fund 51 Nordea 1 - Emerging Market Blend Bond Fund 52 Nordea 1 - Emerging Market Bond Fund 55 Nordea 1 - Emerging Market Corporate Bond Fund 59 Nordea 1 - Emerging Market Local Debt Fund 62 Nordea 1 - Emerging Markets Focus Equity Fund 64 Nordea 1 - Emerging Stars Equity Fund 66 Nordea 1 - Euro Bank Debt Fund 68 Nordea 1 - Euro Diversifi ed Corporate Bond Fund 69 Nordea 1 - European Alpha Fund 72 Nordea 1 - European Corporate Bond Fund 74 Nordea 1 - European Corporate Bond Fund Plus 77 Nordea 1 - European Covered Bond Fund (formerly Nordea 1 - Euro Bond Fund) 80 Nordea 1 - European Cross Credit Fund 81 Nordea 1 - European High Yield Bond Fund 82 Nordea 1 - European High Yield Bond Fund II 84 Nordea 1 - European Low CDS Government Bond Fund (formerly Nordea 1 - Euro Government Bond Fund) 86 Nordea 1 - European Small and Mid Cap Equity Fund 87 Nordea 1 - European Value Fund 89 Nordea 1 - Far Eastern Equity Fund 90 Nordea 1 - Global Bond Fund 92 Nordea 1 - Global Emerging Markets Equity Fund 94 Nordea 1 - Global High Yield Bond Fund 95 Nordea 1 - Global Infl ation Linked Bond Fund 98 Nordea 1 - Global Portfolio Fund 99 Nordea 1 - Global Real Estate Fund 100 Nordea 1 - Global Stable Equity Fund 102 Nordea 1 - Global Stable Equity Fund - Unhedged 104 Nordea 1 - Global Theme Select Fund 106 Nordea 1 - Global Value Fund 107 Nordea 1 - Heracles Long/Short MI Fund 108 Nordea 1 - Indian Equity Fund 109 Nordea 1 - International High Yield Bond Fund 110 Nordea 1 - Latin American Equity Fund 112 Nordea 1 - Low Duration US High Yield Bond Fund 114 Nordea 1 - Multi-Asset Fund 116 Nordea 1 - Multi-Asset Plus Fund 117 Nordea 1 - Nordic Equity Fund 118 Nordea 1 - Nordic Equity Small Cap Fund 119 Nordea 1 - North American All Cap Fund 121 Nordea 1 - North American High Yield Bond Fund 122 Nordea 1 - North American Small Cap Fund 124 Nordea 1 - North American Value Fund 126 Nordea 1 - Norwegian Bond Fund 127 Nordea 1 - Norwegian Equity Fund 129 Nordea 1 - Norwegian Kroner Reserve 130 Nordea 1 - Polish Bond Fund 132 Nordea 1 - Polish Equity Fund 133 Nordea 1 - Senior Generations Equity Fund 135 Nordea 1 - Stable Emerging Markets Equity Fund 136 Nordea 1 - Stable Equity Long/Short Fund 138 Nordea 1 - Stable Return Fund 140 Nordea 1 - Swedish Bond Fund 144 Nordea 1 - Swedish Equity Fund 145 Nordea 1 - Swedish Kroner Reserve 146 Nordea 1 - US Corporate Bond Fund 147 Nordea 1 - US High Yield Bond Fund 151 Nordea 1 - US Total Return Bond Fund 155 Notes to the Financial Statements as of 31/12/2012 157 Shareholder’s Information 210 Nordea 1, SICAV - Audited Annual Report 2012 1 Report of the Board of Directors The Chairman’s report A new year is ahead of us and it will undoubtedly bring a lot of new interesting events that will impact the fi nancial markets. The last year proved to be a volatile, but prosperous year, for almost all asset classes. The plethora of worries that the markets are faced with are by no means over. But a lot of accommodative action from the governments and supra-nationals kept the markets on track in what eventually turned out to a very good investment year. Most risk assets moved higher over 2012, not at least fueled by central bank stimulus. However, the fi nancial markets are still vulnerable with extremely low government yields, corporate earnings are under pressure and considerable political and policy risks remain. The European debt and Euro crisis, Chinas economic outlook as well as the malfunction of the US fi scal system are the three main concerns occupying us going into 2013. In Europe is the dilemma between reducing debt and igniting growth the overriding theme. Companies have rationalized and are making good profi ts and it seems that the Greece problem at least has been contained for a while. One of the wishes for 2013 is that the contagion will not spread to bigger economies such as Italy and Spain. The crisis has increased unemployment to unsustainable levels in some countries and we have started to see civil unrest in the Mediterranean countries as people are getting increasingly frustrated by the lower standards of living. However, if we remember the macro situation one year ago, we believe it is fair to say that policy makers on average have taken some necessary steps to prevent further turmoil irrespective that some of the measures taken are short term in nature. Growth and job creation will be key in getting the economies back on track. Despite the crisis and the many dark clouds still surrounding us, 2012 turned out to be a very interesting and busy year for the Company. 4.9bn EUR in new net fl ows and total net assets of more than 16bn EUR end of 2012 is by far the most successful year for the Company since its inception in 1989. Disregarding a few outliers, the average investment performance of the fund range was also satisfactory in both absolute and relative terms. As part of the ongoing review of the product range, 7 sub-funds have been merged and 14 new sub funds have been launched. The reasoning for merging sub-funds is that assets were too small to provide effi cient portfolio management and there was no perspective that this was going to change. The new sub-funds are primarily catering for investors who are seeking credit exposure. The main exception to this rule is Indian Equity Fund which was seeded by a feeder fund in Finland and launched in July. European regulation made it possible to launch Master-feeders some years ago and we have now for the fi rst time used this tool to increase effi ciency and keep costs down. We do not believe that the crisis is over, but that the global economies slowly, but surely, are moving in the right direction making the prospects for 2013 quite positive for risk assets. At the Annual General Meeting of Shareholders, the Board of Directors will propose that, for the fi nancial year 2012, Nordea 1, SICAV pay the following dividends: • DKK 5.1149 to holders of AI-Shares in Nordea 1 - Danish Mortgage Bond Fund • DKK 3.5551 to holders of AP-Shares in Nordea 1 - Danish Mortgage Bond Fund • DKK 4.5403 to holders of HAIE-Shares in Nordea 1 - Danish Mortgage Bond Fund • EUR 0.2449 to holders of AI-Shares in Nordea 1 - Emerging Consumer Fund • EUR 0.0289 to holders of AP-Shares in Nordea 1 - European Alpha Fund • EUR 1.1082 to holders of AX-Shares in Nordea 1 - European Corporate Bond Fund • EUR 0.3010 to holders of AP-Shares in Nordea 1 - European Cross Equity Fund • EUR 0.1373 to holders of AI-Shares in Nordea 1 - European High Yield Bond Fund • EUR 0.8588 to holders of AP-Shares in Nordea 1 - European High Yield Bond Fund • EUR 0.0637 to holders of HAG-Shares in Nordea 1 - European High Yield Bond Fund • EUR 0.0727 to holders of HAIG-Shares in Nordea 1 - European High Yield Bond Fund • EUR 3.5640 to holders of AP-Shares in Nordea 1 - European Small and Mid Cap Equity Fund • EUR 0.0666 to holders of AP shares in Nordea 1 - European Value Fund • USD 0.2498 to holders of AP-Shares in Nordea 1 - Far Eastern Equity Fund • EUR 0.2155 to holders of AP-Shares in Nordea 1 - Global Bond Fund • USD 0.5388 to holders of AI-Shares in Nordea 1 - Global High Yield Bond Fund • EUR 0.0717 to holders of AP-Shares in Nordea 1 - Global Stable Equity Fund • EUR 0.0048 to holders of AP-Shares in Nordea 1 - Global Theme Select Fund • EUR 0.1016 to holders of AP-Shares in Nordea 1 - Global Value Fund • USD 0.0258 to holders of AP-Shares in Nordea 1 - Low Duration US High Yield Bond Fund • USD 0.5118 to holders of HAIE-Shares in Nordea 1 - Low Duration US High Yield Bond Fund • EUR 0.3644 to holders of AP-Shares in Nordea 1 - Nordic Equity Fund • NOK 3.0463 to holders of AP-Shares in Nordea 1 - Norwegian Bond Fund • NOK 2.5552 to holders of AP-Shares in Nordea 1 - Norwegian Kroner Reserve • EUR 0.0040 to holders of HAE-Shares in Nordea 1 - Senior Generations Equity Fund • EUR 0.0490 to holders of AP-Shares in Nordea 1 - Stable Return Fund • SEK 2.3989 to holders of AP-Shares in Nordea 1 - Swedish Bond Fund • USD 0.4650 to holders of AI-Shares in Nordea 1 - US Corporate Bond Fund • USD 0.8378 to holders of AI-Shares in Nordea 1 - US Total Return Bond Fund • USD 0.6410 to holders of AP-Shares in Nordea 1 - US Total Return Bond Fund • USD 0.0150 to holders of HA-Shares in Nordea 1 - US Total Return Bond Fund • USD 0.1060 to holders of HAIG-Shares in Nordea 1 - US Total Return Bond Fund • USD 0.1772 to holders of HAIE-Shares in Nordea 1 - US Total Return Bond Fund • USD 0.8134 to holders of AI-Shares in Nordea 1 - US High Yield Bond Fund The Board would again like to thank all stakeholders involved in the management of Nordea 1, SICAV for their dedicated support in 2012.