Executive Summary
Storm Bond Fund has attracted the attention from many investors for one reason: Investing in high yield bonds combining high long-term returns (7%+annualised over 10 years) with low reported volatility and moderate recent drawdowns.
The superficial conclusion would be that the fund is βhigh yield without the painβ however, the correct conclusion is more nuanced.
Name: Storm Fund II β Storm Bond Fund RC
ISIN: LU0840158819
Asset Manager: Storm Capital Management AS
Fund Structure: UCITS SICAV (Luxembourg)
Fund Type: Active Corporate Bond Fund
Asset Class: Nordic Corporate & High Yield Bonds
Share Class Currency: EUR (Hedged)
Launch Date (Fund): September 2008
What the Fund Is (and Is Not)
Storm Bond Fund is a Nordic corporate bond high-yield fund that uses the Oslo market infrastructureπ¦. This matters because the investable universe is not limited to βNordic domiciledβ issuers; it can include non-Nordic companies whose bonds are issued/listed in the Oslo market ecosystem, which has historically been the main venue for Nordic HY as well as offshore/energy services financing.βοΈβ
It is not a Nordic sovereign risk product. It is credit risk, predominantly high yield.
The base currency is NOK, and foreign-currency share classes are currency-hedged ππ± (the EUR retail class being the typical choice for euro-based investors). This hedge has historically caused the EUR-class to lag NOK returns in most years (carry cost), nevertheless it provided protection in stress episodes where NOK depreciates ( e.g. 2020)
How the Strategy Works
The investment process combines top-down relative value screening with bottom-up issuer analysis, focusing on cash-flow generation, debt sustainability, collateral quality and capital structure seniority.
Crucially, the strategy has evolved materially since 2016. Prior to that period, the portfolio followed a more concentrated, commodity-linked, buy-and-hold approach.π
SOURCE: Storm Capital Website. Monthly report - Storm Bond Fund-December 2025
Following the 2014β2015 oil collapse, the fund shifted toward a more asset-backed, value-oriented and actively traded credit strategy, with explicit controls on liquidity, duration and downside risk.π
Today, returns are primarily driven not by passive carry, but by security selection, price dislocations, restructurings and spread compression, with an active portfolio rotation when risk-reward changes.
Portfolio Snapshot
The portfolio is predominantly exposed to Nordic corporate issuers, with Norway as the core geography, complemented as previously commented by selective exposure to international companies issuing through the Nordic market.ππ
Source: www.finect.com | Report Date: 1/6/2026
While energy-related services remain an important part of the opportunity set, exposure today is far more diversified across sectors and business models than in the pre-2016 period.
SOURCE: Storm Capital Website. Monthly report - Storm Bond Fund-December 2025
The strategy combines corporate, financial and asset-backed credits within a deliberately short-duration framework, complemented by a meaningful allocation to floating-rate instruments that reduces sensitivity to interest-rate moves.π°π
In addition, the fund maintains a recurring liquidity buffer ( close to 10%) which enhances flexibility and allows capital to be deployed opportunistically during periods of market stress.
Altogether, these features reflect a portfolio designed to prioritise resilience and optionality rather than just yield maximisation.
Risk, Performance and Expectations
Source: www.finect.com | Report Date: 1/6/2026
The long-term performance profile highlights the fundβs ability to generate attractive absolute returns across different market cycles. The incentive framework further strengthens this outcome: the fund applies a 10% performance fee above a 3-month Euribor + 3% hurdle, subject to a high-water mark, ensuring that performance fees are earned only through sustained value creation and disciplined risk-taking. π¦ β³
This structure aligns manager incentives with capital preservation rather than short-term return maximisation. For EUR-based investors in hedged share classes, mid-single-digit net annual returns represent a reasonable base-case expectation, with upside primarily emerging during periods of market dislocation.
SOURCE: Storm Capital Website. Monthly report - Storm Bond Fund-December 2025
On the other hand, what stands out is not only the level of returns, but how they have been achieved. Compared with US, European and Asian high-yield peers, the fund combines meaningfully lower dispersion of returns with consistently higher risk efficiency, as evidenced by superior Sharpe ratios and materially lower standard deviation. π‘οΈπ
This suggests that value creation has come from portfolio construction and credit judgement rather than volatility exposure. In relative terms, the strategy delivers comparable or higher returns while subjecting investors to substantially less variability than traditional high-yield allocations.
The Manager Behind the Fund
The fund is managed by a seasoned Nordic credit team led by Morten E. Astrup, CIO and Founding Partner of Storm Capital Management, with over 25 years of experience in asset management and significant personal investment in the fund.
Morten E. Astrup
CIO | FOUNDING PARTNER
He is supported by Morten Venold, Partner and Portfolio Manager, who joined in 2015 bringing deep Nordic high-yield credit research expertise from Arctic Securities, ABG Sundal Collier and DNB. The team is further strengthened by Gustaf AmlΓ©, Portfolio Manager, with prior experience as a credit research partner at Fearnley Securities.
Morten Venold
PORTFOLIO MANAGER | PARTNER
Gustaf AmlΓ©
Portfolio Manager
Why Look at This Fund?
Storm Bond Fund offers exposure to a differentiated Nordic credit ecosystem where inefficiencies are more frequent than in global HY indices. Its relevance lies in a strategy forged through real stress, demonstrably evolved risk framework and the mentioned alignment that prioritises capital preservation. π‘π§
This fund would be appropriate for investors seeking defensive income with optionality, rather than pure high-yield beta, the fund represents a credible, experience-driven allocation.
Here are insightful recent videos interviewing Mr Morten.
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