Investment Fund Crisis in Türkiye in the International Press

The investment fund crisis, which broke out in Turkey in mid-September, is being closely followed in the international press as the liquidation process begins and the investigation expands. During the period when the CMB decided to liquidate 131 funds, it is not yet clear how much of the money of more than 455 thousand investors will be able to get it back and when.

The crisis is not limited to investor losses only; It is stated that it also raises questions about the effectiveness of market control, manipulation warnings made before the collapse and the political repercussions of the incident. Experts whose opinions were consulted in Al-Monitor's report draw attention to the problems that may be caused by the liquidation of low-liquid stocks.

Highlights from Al-Monitor's Jack Dutton's analysis focusing on the subject are as follows:

"CLOSE TO 20 BILLION"

According to Al-Monitor, the crisis became evident in mid-September when funds managed by some companies, including Tera Portföy and Pusula Portföy, had difficulty meeting investors' withdrawal requests.

On September 17, CMB decided to liquidate 131 funds with more than 455 thousand investors. The reported total asset size of these funds is approximately 20 billion dollars. However, Al-Monitor emphasizes that this figure does not indicate the actual amount of money investors initially invested or how much can be recovered at the end of the liquidation.

WHAT IS THE BIGGEST PROBLEM?

According to Al-Monitor's analysis, one of the main problems facing the liquidation process is that some funds hold large positions in companies with low transaction volume and free float.

In his assessment to Al-Monitor, East Capital portfolio advisor Emre Akçakmak stated that these shares are rapidly losing value and that the funds hold liquid assets such as cash and bonds, as well as small company shares that are much more difficult to sell.

Akçakmak also pointed out that the reported values ​​of the funds may have been inflated before and said that the entire decrease in the declared asset value should not be considered as realized cash loss.

Pessimistic Predictions

GlobalSource Partners Türkiye analyst Atilla Yeşilada painted a more pessimistic picture in his statement to Al-Monitor. Based on the assessment of two experts he trusts, Yeşilada suggested that it might be optimistic that investors could even get back 20 cents per dollar of the money they invested in some troubled assets.

Al-Monitor particularly emphasizes that this estimate is not based on a completed asset valuation of the funds, but is based on the evaluations of other experts interviewed by Yesilada.

"POLITICAL CONNECTION" ALLEGATIONS

Al-Monitor wrote that the investigation also brought up some names close to the AK Party.

According to the news, AK Party Deputy Chairman Fatma Betül Sayan Kaya resigned from her post on September 27, following allegations that she made profits from some stocks using inside information before the collapse of the funds.

Al-Monitor also reported, citing news in the Turkish press based on prosecutor's office documents, that a restriction was imposed on the assets of Mustafa Yazıcı, the son of AK Party Deputy Chairman Hayati Yazıcı, on September 30, and this decision was lifted on the same day. Hayati Yazıcı, on the other hand, argued that his son's business activities were legal and requested that the allegations be investigated.

Former Minister of Economy Nihat Zeybekci, in his statement to Sözcü, said that the money of the four companies of which he was a partner remained in Tera's TP2 fund. Zeybekci stated that the investments were made without his knowledge and that state institutions were negligent in the process.

A senior Turkish financial executive, who spoke to Al-Monitor on condition of anonymity, claimed that other political figures may have been involved in the process and that some funds may have been transferred elsewhere.

However, Al-Monitor's report does not provide any independent evidence confirming this assessment. The source justifies his claim by saying that little is still known about who sold the shares to the funds and who profited from the transactions.

"A MANIPULATION WARNING WAS MADE"

One of the most important points that Al-Monitor draws attention to is the warnings made before the crisis.

According to the news, Minister of Treasury and Finance Mehmet Şimşek stated publicly that there was manipulation through some funds in November 2025 and promised stronger regulation and supervision.

In its market classification review in June 2026, MSCI also expressed concerns that coordinated transactions could be made in the assets of funds closely linked to some small Turkish companies.

According to CMB's own chronology, the institution detected fund-related price movements that could not be explained by the basic indicators of the companies in late 2025. The issue was discussed in the Financial Stability Committee in December 2025 and a working group was formed by the CMB. Although various regulations were made throughout 2026, these measures could not prevent the collapse in September.

WHAT WILL FOREIGN INVESTORS DO?

Experts interviewed by Al-Monitor also point out that the crisis has not spread to the entire Turkish fund market. Economist Murat Sağman stated that there were problems in less than 10 percent of the approximately 200 billion dollar Turkish fund market and that only 131 of more than 2,600 funds were affected by the crisis.

On the other hand, Emre Akçakmak stated that volatility may continue during the liquidation process and domestic and foreign investors may remain in a wait-and-see position for a while.

In his assessment to Al-Monitor, Atilla Yesilada suggested that foreign equity investors may stay away from Türkiye for a while if allegations regarding political connections come to the agenda more in the global financial media.

According to Akçakmak, the priority in the short term is to preserve market liquidity, bring the crisis under control and provide investors with a clear road map regarding the solution process.