CMB's decision to liquidate 131 funds: 455,000 investors, Ziraat Bank paid 43,000 people

The impact analysis of the draft law prepared for 131 investment funds ordered to liquidate through decisions of the Capital Markets Board (CMB) dated 17 September 2024 has been published. According to data from the Central Registry Agency (CRA), these funds hold the savings of 455,758 unique investors. The 131 funds in question constitute 4.6% of the total number of funds in Turkey and 7.7% of total portfolio value.

The draft law establishes two financial facts clearly: Public resources and budget will not be used in payments made to fund unitholders; additionally, the CMB and the Investor Compensation Center (ICC) are simultaneously monitoring approximately 1,500 cases. The analysis also records that as of 8 October 2024, conservatory measures have been applied against 189 people.

Ziraat Bank of Turkey provided the most concrete progress in payments: the bank completed payment transactions for 43,643 investors across 17 funds by 8 October. In money market funds, 199,000 people's investments remain below 1 million lira; this segment forms the profile of small savers directly affected by the liquidation process.

In September, the portfolio size in investment funds declined by 11.23% compared to the previous month, falling to 9 trillion 264 billion lira. In the equities market, portfolio value eroded by 22.83% due to losses. The CMB had not previously made a mass liquidation decision of this scale.