BIST 100 shed 14% in a month amid currency crisis, pension fund portfolios shrunk by 44 billion lira

In the month from September 15—when the investment fund crisis erupted—through October 14, the BIST 100 index fell from 14,235 points to 12,118 points; the 14.2% decline marked one of Istanbul Stock Exchange's steepest monthly drops in recent times. According to data compiled by Sözcü Gazette, the index hit its period low of 11,947 points on September 30.

The decline was not evenly distributed across all market segments. While BIST 30 fell 10.8%, the XUTUM index, which covers all equities, lost 21.2% of its value. The erosion in the IPO Index presented a stark picture at 60.1%; retail investors who had entered the market over months of IPO excitement from Boğaziçi to Ankara now faced these losses.

The picture in the individual pension system is also severe. The average return of 400 pension funds in the same period fell 2.7%. Losses in equity-weighted funds reached 8.6%, while participation equity funds fell 10.3%. Money market and starter funds, by contrast, were among the sole gainers, providing returns of 2.8% and 2.9% respectively.

The total portfolio size of retirement funds shrank from 2 trillion 626 billion lira on September 15 to 2 trillion 582 billion lira on October 13; the 44 billion lira erosion was directly borne by fund participants' savings. It remains unclear which institutions fall under regulatory responsibility for the crisis and when the Capital Markets Board stepped in during this period.