Turkish authorities have taken significant action in response to turmoil within the country's asset-management industry. Several top finance executives have been detained, and others have been issued travel bans as part of an investigation into mass outflows from various funds. Among those arrested is Muhammed Yariz, Chairman of Pusula Portfoy Yonetimi AS, while Altunc Kumova, a prominent businessman whose company was heavily impacted, was also detained. This intervention came after some investment funds failed to meet redemption requests, leading to a sharp sell-off in Turkey's benchmark stock index.
The Capital Markets Board (SPK) has ordered the liquidation of 131 investment funds managed by seven asset management companies, including Tera Portfoy and Pusula Portfoy. These funds hold more than $18 billion in investments and affect approximately 350,000 investors. To oversee this massive liquidation, the SPK has mandated two of Turkey's largest banks, Turkiye Is Bankasi AS and the state-run Ziraat Bankasi AS, to take charge of the process.
The market upheaval followed a liquidity crunch at these investment funds, which triggered significant market instability. The measures taken by the authorities, including the detentions and fund liquidations, were aimed at shoring up market stability. Following these interventions, the Turkish benchmark stock index (.XU100) managed to recover some of its earlier losses, indicating a partial stabilization of the market after the initial shock.
