Turkish regulator orders liquidation of funds managed by 7 portfolio companies

Türkiye's Capital Markets Board (SPK) decided to close all TEFAS-traded investment funds established by seven portfolio management companies to transactions and ordered the liquidation of some of their funds.

The SPK introduced new measures to protect investors' rights and interests following developments in the Borsa Istanbul markets.

All investment funds established by Tera Portfolio Management, Pusula Portfolio Management, Hedef Portfolio Management, Atlas Portfolio Management, A1 Capital Portfolio Management, Pardus Portfolio Management and Bulls Portfolio Management and traded on the Turkish Electronic Fund Trading Platform (TEFAS) were closed to purchases and redemptions.

The regulator also ordered the liquidation of designated funds belonging to the companies through a method to be determined by the board.

The funds to be liquidated include free funds and money market funds.

The decision covers five funds managed by Tera, 12 by Pusula, 31 by Hedef, 16 by Atlas, nine by A1, 15 by Bulls and 42 by Pardus, bringing the total to 130 funds.

The SPK also decided to temporarily ease the minimum equity maintenance ratio for margin transactions.

The ratio, normally set at 35%, may be applied flexibly at a minimum of 20% until the close of the trading session on Oct. 2, in line with brokerage firms' risk policies and with customer requests taken into consideration as far as possible.

The measure will remain in effect until a further announcement.