Liquidation Process Initiated for One Hundred Thirty Funds of Seven Portfolio Management Companies
Following a default process that posed a systemic risk in the market, one hundred thirty funds belonging to seven portfolio management companies are being liquidated.
With the emergence of a default process that created systemic risk in the market, a decision was made to liquidate one hundred thirty funds of seven portfolio management companies. The process, to be conducted under the supervision of the Capital Markets Board, aims to convert the assets of five hundred fifty thousand investors into cash.
Liquidation Decision for One Hundred Thirty Funds
Following the emergence of a default process that created systemic risk in the market, a liquidation decision was made for one hundred thirty funds belonging to seven portfolio management companies.
With this decision, it is aimed to halt the process that created risk in the market and caused Borsa Istanbul to suffer losses.
Number of Investors and Institution Managing the Process
It is stated that a total of five hundred fifty thousand investors are in the one hundred thirty funds decided for liquidation.
The liquidation process, to be carried out by the Capital Markets Board, is expected to be transferred to the Investor Compensation Center.
Identification and Conversion of Assets into Cash
Within the scope of the process, the assets in the funds will first be identified, and then these assets will be attempted to be converted into cash.
During the liquidation process, fund owners will receive shares in proportion to their assets in the fund based on the amounts converted into cash.
Waiting Periods for Different Fund Types
It is stated that the process will progress easily in funds containing government bonds without equity repo.
It is anticipated that converting assets into cash will be more difficult in equity funds and money market funds containing equity repo.
How Long the Liquidation Period Will Take
It is thought that the liquidation period in equity funds and funds containing equity repo could take two to three months.
In money market funds, however, it is stated that investors may regain their money at the end of a one- to two-week process.