The Turkish collective investment industry is experiencing an unprecedented crisis: the regulator SPK has decided on the compulsory liquidation of 131 funds that defaulted — among them was the popular money market PIF Tera Portföy Money Market Fund (TP2).
The problem affected more than 353 thousand retail investors, and the total amount of funds involved exceeded $18.3 billion (890 billion lira). Of this figure, $7.5 billion relates to defaulted funds included in the Tera group.
The collapse was caused by a hidden scheme of cross-investments in illiquid securities of affiliated structures—for example, the company Katılımevim, whose shares were previously artificially driven up by almost 2000%.
The problem affected more than 353 thousand retail investors, and the total amount of funds involved exceeded $18.3 billion (890 billion lira). Of this figure, $7.5 billion relates to defaulted funds included in the Tera group.
The collapse was caused by a hidden scheme of cross-investments in illiquid securities of affiliated structures—for example, the company Katılımevim, whose shares were previously artificially driven up by almost 2000%.
