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Türkiye has quarantined a limited number of troubled investment funds, while 90% of the fund market continues to operate normally, Treasury and Finance Minister Mehmet Simsek said Friday.
"There is no systemic risk spread across the market. There is no structural problem in the stock market or fund market," Simsek said during a live interview.
The remarks came after market turbulence began Tuesday, when major fund manager Pusula Portfoy reported redemption problems at some funds, before intensifying Wednesday after Tera Portfoy reported similar difficulties.
Türkiye has 2038 funds, Simsek noted, adding that the latest woes concern 131 funds in the hedge fund segment, where regulations are relatively flexible, and investments are generally made by qualified investors.
Authorities had already raised concerns about potential problems in the sector after a Financial Stability Committee meeting in late 2025, according to Simsek. Officials subsequently called for new regulations and safeguards.
A new fund guide announced at the end of August introduced stricter rules for free funds, including stronger collateral requirements and a transition period for market participants to adapt.
Simsek said market-distorting actions had been detected at a very limited number of funds and that the necessary measures had been taken. The Capital Markets Board (CMB) placed 131 funds operated by 7 portfolio management companies into liquidation and released a three-month roadmap for the process Thursday evening, he recalled.
"The liquidation process will be carried out. Investors' savings there will be spread over a certain period, and the assets there will be protected," Simsek said.
Authorities had prepared alternative plans for different scenarios, but most of the measures considered during the previous day's market stress were ultimately unnecessary, Simsek added.
The CMB authorized Is Bank and Ziraat Bank to oversee the liquidation of 131 funds managed by seven portfolio management companies.
Is Bank will handle funds established by Tera Portfolio Management, while Ziraat Bank will oversee those established by A1 Capital Portfolio Management, Atlas Portfolio Management, Bulls Portfolio Management, Hedef Portfolio Management, Pardus Portfolio Management and Pusula Portfolio Management.
The funds have a combined value of more than ₺800 billion, with over 500,000 participants awaiting the return of their money, according to market data as of Sept. 17.
Within two business days, the banks and the Central Securities Depository (MKK) will reconcile fund shares with each investor’s custody account, checking outstanding orders, pledges, liens and other restrictions on the assets.
The banks will sell the funds’ assets and convert the proceeds into cash, taking into account investor interests, market liquidity and how easily each asset can be sold.
The process will be completed within a maximum of 3 months from the liquidation announcement, although the deadline can be extended if necessary, the CMB said.
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