Norway’s $2.3 trillion sovereign wealth fund, NBIM, kept stakes in three Turkish firms—Baticim Bati Anadolu Sanayi ve Ticaret AS, Visne Madencilik Uretim Sanayi VE Ticaret AS, and Peker Gayrimenkul Yatirim Ortakligi AS—through mid‑June 2025, even after regulators fined individuals for share manipulation. The fund severed ties with external manager Istanbul Portftoy Yonetimi AS, which oversaw $2.1 billion of its Turkish holdings, but retained the direct positions. Turkish regulators penalized an Istanbul Portfoy partner 18.5 million lira for misleading price actions in Baticim, while Visne and Peker were linked to Tera Yatirim Menkul Degerler AS, a key firm in the ongoing crisis. The Borsa Istanbul All Share Index has fallen 22% since May, erasing 4.6 trillion lira ($94.6 billion) in market value, and local funds face scrutiny for alleged Ponzi‑like schemes. Shares of Visne, Baticim, and Peker have collapsed 50%, 67%, and over 80% respectively, prompting questions about NBIM’s governance and oversight of external managers. NBIM declined to comment, and its latest disclosures cover holdings up to June 30.
The Turkish crisis centers on local finance firms accused of inflating small‑cap stocks through retail‑oriented funds. Dozens have been arrested, including fund managers and executives, as prosecutors investigate whether these firms artificially boosted valuations before the market imploded. The Capital Markets Board’s probe of Baticim’s 2024 surge—reaching 45 billion lira, ten times its historic average—led to the fine and the termination of NBIM’s external partnership. Visne’s February 2025 IPO, arranged by Tera, and Peker’s ties to the same network underscore the systemic risk. NBIM, which publishes holdings semi‑annually, faces growing scrutiny over its governance practices, especially as external managers now control 5% of its assets.
Karin Thorburn of the Norwegian School of Economics highlighted the broader governance dilemma: whether delegated investment decisions receive equivalent scrutiny as internal ones. The situation illustrates the challenges of oversight when sovereign wealth funds rely on external managers in volatile markets, raising concerns about transparency and risk management for Norway’s $2.3 trillion fund.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing