Updated 8 October 2026.
The Borsa İstanbul fund crisis surfaced in September 2026 and by early October had moved into liquidation and payout procedures. It covers 131 investment funds (yatırım fonu) run by seven portfolio management companies (portföy yönetim şirketi). At its centre are allegations that coordinated trades created artificial prices in certain shares, the funds’ inability to meet their cash needs, and investors who cannot get their money back. The core issue is not only that share prices fell. It is how much of the portfolio value shown by the funds can actually be turned into cash.
In brief
- On 17 September it was reported that liquidation (tasfiye) had begun for 131 funds managed by seven companies: Tera, Pusula, Hedef, Atlas, A1, Pardus and Bulls Portföy.
- On 29 September a Fund Coordination Board (Fon Koordinasyon Kurulu) was set up under Vice President Cevdet Yılmaz.
- As of 30 September the capital market activities of Tera Yatırım Menkul Değerler were temporarily suspended.
- The liquidation period has been extended from three months to six, and payments are expected in stages. Timing and amounts depend on each fund.
- According to Cevdet Yılmaz, no Treasury money will be used: investor rights are to be met from each fund’s own resources.
What happened to the funds on Borsa İstanbul?
According to an analysis by Pelin Cengiz published by Aposto, the portfolio management companies at the centre of the crisis traded with one another in shares with a low free float and low trading volume. The analysis says these trades led to artificial price formation and left a fragile gap between the funds’ reported values and the prices at which real buyers could be found in the market.
These are allegations and assessments of manipulation as reported by the source. They should not be read as a final court ruling.
Aposto links the breaking point to the liquidity squeeze that followed the decisions of the Capital Markets Board of Türkiye (Sermaye Piyasası Kurulu, SPK) on 28 August. As investors sought to exit, the funds’ need for cash grew, while the assets they held could not be sold at the same speed. Some funds went into default (temerrüt), meaning they failed to meet their payment obligations on time.
The crisis therefore deepened where two problems met:
- how realistic the prices of the assets were;
- whether those assets could be sold fast enough to cover investor redemptions.
In the mechanism Aposto describes, a high portfolio value on paper did not by itself mean the capacity to pay.
How did the Borsa İstanbul fund crisis unfold?
Developments from late September to early October show the crisis moving from market trading to the management of a liquidation.
| Date | What happened |
|---|---|
| 28 August | SPK decisions, after which, according to Aposto’s analysis, the liquidity squeeze began |
| 17 September | Liquidation reported for 131 funds managed by seven portfolio management companies. News reports named Tera, Pusula, Hedef, Atlas, A1, Pardus and Bulls Portföy |
| 29 September, evening | The economic leadership, meeting under President Erdoğan, set up a Fund Coordination Board (Fon Koordinasyon Kurulu) chaired by Vice President Cevdet Yılmaz |
| 30 September | The capital market activities of Tera Yatırım Menkul Değerler were temporarily suspended (Aposto reported this on 2 October) |
| Early October | The focus shifted to establishing investors’ entitlements in the liquidated funds and to interim payments before the final liquidation is complete |
| 7 October | Cevdet Yılmaz’s statement was reported: the liquidation of 131 funds is tied to reducing systemic risk, and no Treasury resources will be used |
How is the Tera Yatırım suspension different from the fund liquidation?
They are two separate measures. The suspension concerns the activities of an investment firm, Tera Yatırım Menkul Değerler. The liquidation concerns the funds set up by the portfolio management companies: converting their assets into cash and distributing it to investors.
How will the fund liquidation (tasfiye) work?
According to an analysis by Emircan Yaman for Aposto, the payout process starts with establishing each fund’s real financial position. Until a fund’s assets, debts, receivables and available cash are determined, the amount that can be distributed to investors cannot be fixed.
The expected order of funding sources:
- first, the free cash held in the funds;
- then receivables as they fall due;
- then proceeds from the sale of government bonds.
Assets pledged as collateral are a separate problem. For example, where securities were posted as collateral for repo borrowing, the related debt has to be repaid before the sale proceeds can be distributed to investors.
So the process is not limited to selling all of a fund’s assets and then paying everyone. As debts and receivables are finalised and distributable cash is determined, payments can be made in stages without waiting for the whole portfolio to be sold. Aposto also reports that the liquidation period has been extended from three months to six so that shares can be sold on more favourable terms.
Why are investors still waiting for their money?
The main reason is the gap between the value of a fund unit shown in an account and the money that can be distributed at the end of the liquidation. Holding assets in a portfolio does not mean those assets can be sold immediately and at their current valuations. Debts, collateral obligations and sale conditions all affect what is left for the investor.
There are two separate uncertainties:
| Uncertainty | What it depends on |
|---|---|
| Timing of payment | How quickly the fund can generate cash |
| Amount of payment | The prices at which assets are sold and how much remains after debts are repaid |
Aposto’s liquidation analysis does not support the conclusion that all investors will be paid on the same date or at the same rate. The process has to be assessed fund by fund. The possibility of an interim payment (ara ödeme) also does not mean the final liquidation amount is settled in advance.
Why does the crisis matter for Borsa İstanbul?
It shows how fund management and share prices can affect each other. In the structure Aposto describes, prices formed in thinly traded shares supported the funds’ valuations. Once investors began to exit, selling at those prices became the problem. The funds’ payment difficulties and the illiquidity of the shares fed each other.
The stated aim of the regulatory intervention is not only to liquidate individual funds but to keep the problem from turning into a wider market risk. In a statement reported on 7 October, Cevdet Yılmaz linked the liquidation of the 131 funds to reducing systemic risk, said that meeting investor rights from each fund’s own resources is the principle, and said Treasury resources will not be used. This statement comes from a news source other than Aposto.
What is the focus in early October?
The question is no longer only how these trades took place. It is also which assets are left in the funds, how quickly they can be sold and how much can be paid to investors. Aposto’s weekly calendar of 5 October lists the payout process of the funds in liquidation among the main items on the domestic market agenda.
The crisis should not be read as Borsa İstanbul as a whole ceasing to function. It is a process concentrated around specific funds, portfolio management companies and the market trades connected to them, one that can raise wider questions of confidence and liquidity. The measures announced in the reports reviewed are aimed at liquidating the funds concerned and at the activities of specific institutions, not at closing the exchange.
What should a foreign investor in Türkiye take from this?
- If you hold units in a Turkish fund, check whether it is among the 131 funds in liquidation and follow the information for that specific fund.
- Treat the value shown in your account and the amount that will eventually be paid out as two different figures.
- An interim payment is not the final settlement.
- The measures concern specific funds and institutions. Borsa İstanbul continues to operate.
Frequently asked questions
How many funds are affected by the Borsa İstanbul fund crisis?
131 investment funds managed by seven portfolio management companies. News reports named Tera, Pusula, Hedef, Atlas, A1, Pardus and Bulls Portföy.
Has the manipulation been proven?
No. The source reports allegations and assessments. They are not a final court ruling.
Has Borsa İstanbul been closed?
No. The measures apply to the funds in liquidation and to the activities of specific institutions.
How long will the liquidation take?
The liquidation period has been extended from three months to six. Payments can be made in stages before it ends.
Will all investors be paid at the same time and at the same rate?
The analysis does not support that conclusion. Timing and amounts are assessed fund by fund.
Will the state cover the losses?
According to Cevdet Yılmaz’s statement reported on 7 October, Treasury resources will not be used. Investor rights are to be met from each fund’s own resources.
Is the Tera Yatırım suspension the same as the fund liquidation?
No. The first concerns the activities of an investment firm, the second the sale of fund assets and distribution to investors.
Sources
- Aposto, Pelin Cengiz: analysis of the manipulation mechanism
- Aposto, Emircan Yaman: scenarios for the fund liquidation
- Aposto: Fund Coordination Board
- Aposto: suspension of Tera Yatırım Menkul Değerler
- Aposto: weekly calendar, 5 October
- Posta: liquidation of 131 funds
- Haber7: statement by Cevdet Yılmaz
This material is for information only. It is not investment, legal or financial advice. The manipulation claims are reported as allegations made in the sources.