Turkey Freezes 7 Fund Managers and Liquidates 130 Funds as BIST 100 Rebounds 2.5%
Updated
Updated · Financial Times · Sep 17
Turkey Freezes 7 Fund Managers and Liquidates 130 Funds as BIST 100 Rebounds 2.5%
2 articles · Updated · Financial Times · Sep 17
Summary
130 funds were ordered liquidated and trading was frozen in funds run by seven asset managers after a redemption crisis shook Istanbul markets.
Pusula Portföy said some funds could not meet investor withdrawals on time, sparking a retail fund run that spread to Tera Portföy and Atlas Portföy; the three groups manage about $29 billion.
38 people were referred to prosecutors over suspected market manipulation, while the central bank loosened lira liquidity rules to curb forced selling and contagion.
BIST 100, down 8% over Tuesday and Wednesday, rebounded as much as 2.5% on Thursday after the emergency measures, though it later trimmed gains.
The turmoil tests Finance Minister Mehmet Şimşek's credibility drive after MSCI warned in June about coordinated trading and S&P Dow Jones reviewed Turkey for a possible downgrade to frontier status.