Odyssean Investment Trust : Annual Report YE March 2021

INVESTMENT TRUST PLC

Annual Report and Financial Statements

for the year ended 31 March 2021

About Us

Odyssean Investment Trust PLC (the "Company", the "Trust" or "OIT") is an investment trust which is listed on the premium segment of the Official List of the FCA and admitted to trading on the premium segment of the main market for listed securities of the LSE. The Company had total net assets of £122.6m as at 31 March 2021.

The Board of the Company comprises four non-executive Directors, all of whom are independent of the portfolio manager, Odyssean Capital LLP ("Odyssean" or the "Portfolio Manager").

ODYSSEAN INVESTMENT TRUST PLC

Contents

1 OVERVIEW

2 Investment Objective

3 Investment Policy

5 Financial Summary

6 STRATEGIC REPORT

7 Chairman's Statement

10 Portfolio Manager's Report

22 Portfolio of Investments

23 Distribution of Investments

24 Business Review

35 Risk Management

42 GOVERNANCE

43 Board of Directors

44 Directors' Report

50 Corporate Governance Statement

56 Audit Committee Report

59 Directors' Remuneration Report

63 Statement of Directors' Responsibilities

65 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ODYSSEAN INVESTMENT TRUST PLC

70 FINANCIAL STATEMENTS

71 Statement of Comprehensive Income

72 Statement of Changes in Equity

73 Balance Sheet

74 Cash Flow Statement

75 Notes to the Financial Statements

89 ADDITIONAL INFORMATION AND NOTICE OF AGM

90 Shareholder Information

91 Glossary

93 Notice of Annual General Meeting

100 Explanatory Notes to the Resolutions

103 Corporate Information

ODYSSEAN INVESTMENT TRUST PLC

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Overview

Strategic Report

Governance

Independent Auditor's Report

Additionaland NoticeInformationof AGMFinancial Statements

Investment Objective

The investment objective of the Company is to achieve attractive total returns per share principally through capital growth over a long- term period.

2	ODYSSEAN INVESTMENT TRUST PLC

Investment Policy

The Company primarily invests in smaller company equities quoted on markets operated by the London Stock Exchange, where the Portfolio Manager believes the securities are trading below intrinsic value and where this value can be increased through strategic, operational, management and/or financial initiatives. Where the Company owns an influencing stake, it will engage with other stakeholders to help improve value. The Company may, at times, invest in securities quoted on other recognised exchanges and/or unquoted securities.

It is expected that the majority of the Portfolio by value will be invested in companies too small to be considered for inclusion in the FTSE 250 Index, although there are no specific restrictions on the market capitalisation of issuers into which the Company may invest.

The portfolio will typically consist of up to 25 holdings, with the top 10 holdings accounting for the majority of the Company's aggregate Net Asset Value ("NAV") across a range of industries. The Company will adhere to an exclusion-based investment approach to avoid investment in companies involved in activities the Company deems unethical and/or unsustainable.

The Company may hold cash in the Portfolio from time to time to maintain investment flexibility. There is no limit on the amount of cash which may be held by the Company from time to time.

Investment restrictions

• No exposure to any investee company will exceed 15 per cent. of Net Asset Value at the time of investment.

- The Company may invest up to 20 per cent. of Gross Assets at the time of investment in unquoted securities where the issuer has its principal place of business in the UK.

-	The	Company may invest up to 20 per cent. of Gross
	Assets at the time of investment in quoted securities
	not traded on the London Stock Exchange.
-	The	Company will not invest more than 10 per cent.,
	in aggregate, of Gross Assets at the time of investment
	in other listed closed-end investment funds.

Ethical and sustainability investment restrictions

The Company will not invest1 in companies which derive any revenue from, or are engaged in:

• the production or direct distribution of pornography;
• the manufacture, production or retail of controversial weapons2 (e.g. chemical, biological or nuclear weapons, cluster munitions, landmines), civilian firearms and ammunition;
• the manufacture of alcohol and tobacco products;
• the ownership or operation of gambling facilities;
• sub-primeand/or predatory lending;
• oil and gas production (both conventional and unconventional, including shale oil and gas, coal seam gas, coal bed methane, thermal coal, tar sands, Arctic onshore/offshore deepwater, shallow water and other onshore/offshore) and includes extraction and refining;
• animal experimentation or animal testing, (a) where there is a proven alternative and/or where testing is not mandated by regulation; or (b) where there is no proven alternative and/or the experimentation or testing is mandated by regulation, but where the investee company is not adhering to the "three Rs" ethics of Replacement, Reduction and Refinement.

The Company will not invest more than 10 per cent., in aggregate, of Gross Assets at the time of investment in companies involved in distributing, licensing, retailing or supplying tobacco and/or alcohol beverage products.

1 The Company will base its analysis of an investee company's revenues and activities on publicly available information, and will exclude revenues and activities that are considered to be de-minimis, being those that represent less than 1% of the investee company's revenue.

2 Controversial weapons are those that have an indiscriminate and disproportional humanitarian impact on civilian populations, the effects of which can be felt long after military conflicts have ended.

Overview

Strategic Report

Governance

Independent Auditor's Report

Additionaland NoticeInformationof AGMFinancial Statements

ODYSSEAN INVESTMENT TRUST PLC

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