Billions of liras outflow from funds following CMB regulations

Serdar HocamAuthor & Editor

Significant mobility was observed in TEFAS funds following the Capital Markets Board's new criteria and MSCI warnings.

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128,8 milyar lira fonları terk etti!

Following the new regulations implemented by the Capital Markets Board regarding investment funds and free float rates, a net outflow of billions of liras has been recorded from TEFAS-open funds since the end of August, and thousands of investors have left the market.

Net Outflows from Funds

Following the new regulations put into effect by the Capital Markets Board at the end of last month, a significant contraction was observed in the fund market.

Since August 28, a total net outflow of over 128 billion 749 million liras has occurred from funds open to TEFAS.

Decline in the Number of Investors

Along with the monetary outflows, it was determined that there was a notable decline in the number of fund investors.

According to calculations made during this period, a total of 15,817 investors liquidated their assets in the funds and left.

Activity in Borsa Istanbul

MSCI warnings and the steps taken by the Capital Markets Board also led to mixed movements in Borsa Istanbul indices.

While the BIST 30 index recorded an increase during this period, downward trends were observed in the BISTTUMY and BIST 500 indices.

Highest Inflows and Outflows on a Fund Basis

Across the sector, the highest net money outflow was recorded in Pusula Portföy Money Market Fund with 53.4 billion liras.

On the other hand, the highest net inflow took place in Tera Portföy Equity Fund at the level of 48.6 billion liras.

Scope of the New Regulations

The Capital Markets Board tightened audits by lowering the shareholding notification obligation limit to 3 percent.

New criteria covering indirect partnerships and the ultimate beneficial owners behind the funds were introduced in free float rate calculations.

First Acquisition Move in the Sector

Following the fund regulations, the first corporate acquisition initiative in the market was launched by the Tera Group.

The group announced that it has started official negotiations to incorporate Pusula Financial Holding and its subsidiaries into its structure.