Turkey is exploring a plan to consolidate the assets of numerous troubled investment funds into a single pool to facilitate repayments to investors. This move comes as the country's asset management industry grapples with a significant redemption crisis, which has already resulted in the freezing of assets belonging to executives from several investment firms and the arrest of individuals. The Borsa Istanbul 100 Index experienced a 2.6% decline following these developments.
The crisis deepened with the Capital Markets Board (SPK) ordering the liquidation of 131 investment funds managed by seven portfolio companies, including Tera Portfoy and Pusula Portfoy. These funds hold over $18 billion in investments and affect approximately 350,000 investors. Turkiye Is Bankasi AS and state-run Ziraat Bankasi AS have been appointed to oversee this liquidation process, which is expected to convert fund assets into cash and distribute proceeds within three months, though this timeline could be extended.
Justice Minister Akin Gurlek announced the freezing of assets connected to executives at firms such as Tera Yatirim Menkul Degerler AS, Pusula Finans Holding AS, Hedef Holding, and Bulls Portföy Yönetimi. Authorities have also restricted asset transfers for board members, signatories, and some of their relatives without prosecutorial approval. This is part of a broader crackdown that includes the detention of 15 people in an investigation involving Katilimevim shares, with criminal complaints filed against 38 individuals for alleged share manipulation.
