Şimşek: 66 of 131 Funds Liquidated, 40.8 Billion Lira Paid to 45,747 Accounts

Treasury and Finance Minister Mehmet Şimşek announced that 66 of 131 funds within 7 portfolio management companies have been completely liquidated. According to Anadolu Agency, Şimşek stated in a joint Bloomberg HT and HaberTürk broadcast that a total of 40.8 billion lira was paid to 45,747 accounts.

Şimşek announced that the Capital Markets Board (SPK) placed Hedef Portföy under ordinary liquidation last week. The 31 funds within Hedef Portföy — 4 of which are money market funds — and 23,925 accounts will complete the liquidation process within this week; thus ordinary liquidation for 4 of the 7 companies will be finished.

Investors in money market funds at the 3 companies that completed liquidation received an average additional dividend yield of 1.43 percent based on the September 17 reference date. In equity-heavy funds, investors recovered an average of 58 percent of portfolio value — the 42 percent loss stems directly from the normalization of artificially inflated share prices.

The remaining Tera, Pusula, and Atlas companies are under extraordinary liquidation. Atlas owners are in negotiations with the liquidation authority; it was stated that there is a clear intention for assets withdrawn from the funds to be returned. Measures have been taken regarding the owners.

Once the bill discussed in the parliament passes, interim payments of up to 1 million lira are planned to be made quickly.