Norway's Giant Sovereign Wealth Fund Goes Full Tinfoil Fringe Blog

Tyler Durden's picture

You know the world has gone mad when one of the world's largest pension funds, mired in its need for the maintenance of the status quo, begins to sound like 'digital dickweeds in their parents' basements'. Norway's massive $890 billion wealth fund has stepped out of the shadows to slam global central bankers for affecting "pricing in today’s market to such an extent that monetary policy itself has been a risk you have to watch;" and market structure, criticizing the proliferation of dark pools, "there’s a rent extraction from all these intermediaries... we’re in favor of trying to reduce the number of block-crossing venues," Schanke said, "one would probably be perfect."

 

Sounding a lot like a crazy fringe blog, Norway’s $890 billion wealth fund, as Bloomberg reports, is criticizing the two pillars of today's irrepressible stock market rally...

The investment risks stemming from monetary policy have never been greater...

Like most global investors, the Oslo-based fund is trying to navigate uncharted terrain as central banks across the world push out stimulus to protect economic growth and spur inflation.

 

“Monetary policy does affect pricing in today’s market to such an extent that monetary policy itself has been a risk you have to watch,” Yngve Slyngstad, chief executive officer of the fund, said in an interview on Wednesday at Bloomberg’s New York headquarters.

 

“Investors are focused more on monetary policy changes than has been generally the case, than at any time, as far as I can remember.”

 

At the end of last year, the fund was invested in bonds in 31 currencies.

 

“As anything that moves prices is a risk that has to be monitored, here the effects of monetary policy affect prices dramatically,” Slyngstad said. “It’s of course always been the case with long rates, and now more significantly with the currency. That’s just a fact of the current market.”

And is taking the rare step of publicly criticizing the proliferation of dark pools, arguing the world’s biggest investors only need one such platform.

“There’s a rent extraction from all these intermediaries,” Oeyvind Schanke, head of the fund’s asset strategies, said in a telephone interview on Friday. “We are trying to advocate that we need to bring some of this back to where we started by getting the participants to meet, creating a utility that’s there for the sake of transacting institutional-sized blocks.”

 

The fund says institutional investors, and the savers they represent, are wasting money paying multiple fees amid a fragmentation of anonymous trading venues over the past decade. The dark pools have become associated with the phenomenon of front-running, in which bid and offer information is used by high-frequency traders to pre-empt transactions and make a profit at the expense of investors.

 

The fund, which manages Norway’s oil wealth and holds about $517 billion in stocks globally, is constantly looking for ways to prevent its investments being targeted by high-frequency traders as it lobbies for fairer platforms.

 

...

 

The major issue that needs to be addressed is “liquidity fragmentation” as pools compete against each other on fees and services, according to the fund. It has introduced a “white list” of permitted pools to avoid exchanges prone to high-frequency trading.

 

...

 

“We’re in favor of trying to reduce the number of block crossing venues,” Schanke said. “One would probably be perfect.”

*  *  *
Still - the rest of the world should probably just continue to ignore these risks as "from the fringe"... because what does the biggest pension fund in the world know??

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Weaponized Innocense's picture

Yes as since all good and real things must be weaponized in order to be broken as that no one escape Kiki's perfect hell in her evil voodoo dollhouse where dolls should not talk back or have any ambitions what so ever unless Kiki needs u in her scheme of things.

nmewn's picture

Its a sovereign fund, no its pension fund, no its wealth fund, no its a government pension wealth fund funded by icky black oily stuff!

So anyways, I understand their Nobel Peace Prize winner killed another "citizen" a few months back.

Thats nice.

GoinFawr's picture

It's a functioning sovereignty protection fund, no it's a bonafide flush pension fund, no it's an example of simultaneously fiscally and socially responsible governance, no it's a gov't managed investment fund that has outperformed the market ten years running, including the time when the icky black oily stuff crashed.

 

So anyway, I understand their peaceful attempts to encourage some warmongering maniacs to change their ways have been fruitless.

It must be their fault for trying.

Larry Dallas's picture

What's wrong with buying some gold?

Stuck on Zero's picture

Exactly. What kind of stupid wealth und managers would invest in anything but hard assets in this about-to-fail system?

janus's picture

 

 

"Exactly. What kind of stupid wealth und managers would invest in anything but hard assets in this about-to-fail system?" one that's integrated into nato, has a population of but 5 million and an enormous geographic range; one whose currency is still called the krona and trades freely against the majors; one whose oil industry's very viability is contingent upon a robust american presence on the continent (and all throughout the north sea); a nation which represents a logical second step in an aggressive manuver from the kremlin if putin shouild decide to get aggressive...after all, shutting down north sea oil production would be priority #1 once moscow starts thinking zero-sum (not that they haven't started thinking along these lines already...those submarines love to snoop around scandanavia).   ever since the warsaw pact, when it comes to nato and the 30 yr t-note it's been in for a dime/in for a dollar, etc., etc...now nearing a trillion  

there are no harder assets than u.s. navy carrier groups, f-16s, apache choppers & nike missle silos...petro-dollars pay for those -- backed by the full faith and credit of fear.

but i suspect the continent will be forming military structures independent nato in the not too distant future. i mean, we did pivot east...didn't we?  i dunno; i've seen pivots -- looks more like uncle sam is punting all over the globe.

the world is, from every corner, telegraphing its willingness to walk away from america.  the signs are everywhere.  shit, these dark pools are pretty deep; but you siphon off a trillion here and a trillion there and all the sudden you're startin to talk about real money.

janus  

 

The Black Bishop's picture

Our shitheads in the Norwegian Central Bank sold off the entire Norwegian goldreserve back in 2006 under the argument of "Gold isnt generating any income". Fucking morons who dont understand the conecpt of financial security.

Midas's picture

I have been waiting for someone with deep pockets (I consider $890 billion pretty damn deep) to convert 1% of their assets to silver.  Not much downside and most likely a self fulfilling trade.  Do you think the "market" could withstand someone showing up with 9 billion and a few big rigs?

HenryHall's picture

>>> What's wrong with buying some gold?

 

And copper, and silver, while they are are inexpensive.

In fact someone should come up with making small disks of copper, silver and gold as highly liquid tradeable forms of wealth that would enjoy very wide respect and acceptance. They would have to think up a new word though because "money" is already trademarked/

Kirk2NCC1701's picture

So, when will those "evil" Ruskies or Chinese bring the Derivatives out of their "dynamic balance"?

If they wanted to really shake up the 'Markets'.  Once the Derivatives start tumbling, everything else follows.

Callz d Ballz's picture

"$517 billion in stocks globally"

Good luck with that.

buzzsaw99's picture

ja, de er skrudd

they hold half a trillion in stocks and are getting hosed daily on the euro and their biggest concern is getting clipped for a few bps on a trade? hahahahaha

zhandax's picture

No whistle before this blast crater.  You just wake up one day with futures down 100 points like normal and instead of the ramp, crickets.  Next day, every new 100 points down is on a crawl at the bottom of the screen.

The Black Bishop's picture

Det er da mine penger for faen!

 

We pwn zhe worldZ!

GoinFawr's picture

Hmm. Buzzsaw, in Norwegian does "getting hosed" translate into 'making a killing', or something?

http://online.wsj.com/media/norwaymktvaluePNG.jpg

tony wilson and saturn zion devils's picture

anders brevik was tavistocked in london

a good little mason

a mind controlled sirhan sirhan patsy

yes sir

before the mi mossad slaughter norway was already mossad captured

via blackmail.

a simple look at time lines and location movements would show the bomb shooting spree as a false flag.

a slaughter as correction for norway actions

the leaders where corrected in blood sacrifice of children

kept the money flow into the empire of the city of london.

mi6,mossad and  langley own norway.

by the time the people rise with pots and pans  bricks and bats

and demand

like iceland heads on plates  and revenge.

that sovreign wealth fund that gold

like libyas will be gone just gone.

selective blackmail and false flag slaughter

yes sir

a combo made in saturn hell

Blopper's picture

One global venue without frontrunning and spoofing HFT would be perfect.

williambanzai7's picture

That's not rent extraction, that is the sucking sound of a giant tentacle... 

armageddon addahere's picture

Wish they would come up with a more accurate term than rent. There is a BIG difference between renting a car, a house, or some other tangible good and scamming money by some middleman who gives nothing in return.

Arnold's picture

Except some form of liquidity.

rwe2late's picture

 swindle, grift, skim  (usury)

Atomizer's picture

Wait until they reengage in another SIV (Special Investment Vehicle) conduit. 

RaceToTheBottom's picture

" creating a utility that’s there for the sake of transacting institutional-sized blocks.”"

 

What, that is blasphemous.  WS, the money must flow .... to them

 

TrustbutVerify's picture

The story evolves from being wary of monetary policy to rent or decay costs of dark pool trading.  

Maybe I missed something. Two separate complaints, I guess.  Both legit, especially the monetary policy time bomb. 

bitterwolf's picture

The most important sovereign wealth fund in the world....this money ensures the security of the home of the finest DNA this planet has to offer. The most elegant solution would be to extract wealth from the jewish state to fund the Nordic folk....Arbeit Macht Frei 

 

NoWayJose's picture

He is just upset his organization will not let him download and run the same HFT spoofing algorithms that everyone else is using!

teslaberry's picture

norway needs goldman sachs on the job!

amanfromMars's picture

The most valuable commodity ever available to markets ?

Simply complex disruptively creative novel noble intelligence/proprietary future derivative intellectual property. Ignorance of it is a bliss to watch as Advanced IntelAIgents and Global Operating Devices front run Ponzi Trading Systems hooked on/onto/into the rogue runaway train that services HFT with Virtual Machine Algorithms/Dumb Terminal Instruction.

It is also though, primarily and ultimately, a PEBKAC manifestation in all of ITs Arrogant Glory and offers ..... well, New Virgin Fields for SMARTR Advanced IntelAIgent Sytems Exploration and Exploitation ..... Opportune Computer Code Violation with AI ReHashing for Secure Zeroday Trade Platforms/Programs/Projects/Pogroms/Plays.

Barry McBear's picture

The funds managers should be sucking Yellen's cock.  Their equity portfolio would be worth a hell of a lot less than $517 billioin if it weren't for the Central Banks.

strangeglove's picture

See what happens when there is no Porn for him to watch. starts Bitching immediately

pitterrier's picture

Didn't they buy Greek Bonds a couple years ago, because they were a good value?

venturen's picture

There is only ONE inlfation...Stock Market Inflation! 

f16hoser's picture

Oh, Oh; is there another MI5/6 Hit on Norway children planned again???

theyjustcantstop's picture

i love this, the people who've played the game while making billions, have come to the same conclusion, as many others, it was fun when we were winning, but can't find a way out of the game, and want the rules,  (past accepted practice), changed.

how does it feel to get the most chips in the game, and you can only redeem them for house tokens.

it's got to be a bitch, you sit down, pause, and think, and you realize you have $890 billion dollars in house credits, and you can't leave the game.

 

JenkinsLane's picture

The Norwegian SWF needs to stop moaning and set up it's own exchange. It has the financial muscle to do so.