Turkey's Capital Markets Board has ordered interim payments of up to 1 million liras ($20,400) to investors trapped in liquidated funds. The measure initially covers funds managed by Tera Portfoy Yonetimi AS, Pusula Portfoy Yonetimi AS, Atlas Portfoy Yonetimi AS, and Hedef Portfoy Yonetimi AS. Investors with net holdings under 1 million liras will receive their full investment amount, while those with larger sums are capped at the maximum.
The payments serve as advances against eventual payouts once funds are fully liquidated. This action follows the Sept. 17 liquidation order for 131 funds managed by seven portfolio management companies, affecting approximately 455,758 investors with about $20 billion in assets. Turkish stocks entered a bear market Wednesday, with the Borsa Istanbul 100 Index falling 2.8% to 11,947, down 21% from early May peaks.
The Central Securities Depository will calculate net investment amounts. Payments will start urgently with money-market funds. The board also established the winding-down order for funds managed by A1 Capital Portfoy Yonetimi AS, Bulls Portfoy Yonetimi AS, and Pardus Portfoy Yonetimi AS, prioritizing funds with the largest investor counts.
Tera executives Erdin Ozel and Emir Munir Sarpyener were formally arrested, while former Capital Markets Board chairman Ibrahim Omer Gonul testified as a suspect. Turkey's banking regulator transferred shareholder rights in Tera, Destek, and Hedef investment banks to the Savings Deposit Insurance Fund.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing