Turkey's market regulator announced on September 17, 2026, its decision to liquidate some funds managed by seven asset management companies. These firms include Tera Portfoy and Pusula Portfoy, as stated by Tugce Ozsoy in a Bloomberg report. This action follows a turbulent period where three asset managers were unable to fulfill redemption requests from investors, leading to a steep selloff in the Turkish equity market.
The Turkish Capital Markets Board (CMB) specifically suspended trading and ordered the liquidation of assets for funds managed by TERA, PUSULA, HEDEF, ATLAS, A1, PARDUS, and BULLS. This move was triggered by earlier reports, such as one from September 16, 2026, which highlighted that Tera Portfoy Yonetimi AS had two funds with a combined $7.5 billion in assets that failed to meet redemption demands. This made Tera Portfoy the second Turkish asset manager to default on some funds that week, with the specific funds being Tera Portfoy Money Market Fund (TP2) and Tera Portfoy Equity Intensive Fund (THF).
The unfolding crisis in the fund industry had a considerable impact on Turkish stocks. On September 16, 2026, the Borsa Istanbul 100 Index plummeted by as much as 5.7%, extending its two-day decline to 6.9%. This marked the largest two-day drop since March 2025. All but one stock in the benchmark index declined, with Destek Finans Faktoring AS falling 10%. The index later recovered some losses, trading 3% lower as of 11:55 a.m. in Istanbul, as reported by Tugce Ozsoy and Inci Ozbek. In response to the market developments, the Central Bank of the Republic of Türkiye (CBRT) issued a press release on September 17, 2026, announcing measures to manage Turkish Lira liquidity, including increasing funding via one-week repo auctions, revising banks’ borrowing limits, and reducing collateral haircuts.
