Turkey's Tera Asset Management halts investor payouts amid fund crisis

September 18, 2026 at 04:58 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Tera Portföy Yönetimi A.Ş. said on Sept. 16 it could not pay clients seeking to exit its funds, triggering panic among investors in Turkey's once high-flying mutual funds. The announcement followed a default by Pusula Portföy and came as investors pulled 213 billion lira from Turkish funds between Aug. 31 and Sept. 16.

Key Facts

Tera Portföy's flagship fund returned over 66,000% in the three years to Sept. 16.
Investors withdrew approximately 213 billion lira ($4.7 billion) from Turkish investment funds between Aug. 31 and Sept. 16, according to Fintables data.
Pusula Portföy defaulted after failing to meet redemption requests following a collapse in the value of its stock holdings.
Turkey's Capital Markets Board (SPK) issued new guidance in August to address investor concerns over unusual stock movements.
More than 350,000 citizens' savings are at risk in funds slated for liquidation.

Fund Collapse

Tera Portföy Yönetimi A.Ş. announced on Sept. 16 that it could not pay clients who wanted to leave its funds. The company's flagship fund had delivered a return exceeding 66,000% over the three years to Sept. 16. Pusula Portföy Yönetimi A.Ş. defaulted after the value of its stock holdings collapsed and it could not meet redemption requests. Tera Portföy quickly announced it would acquire Pusula, but questions remained over how it would handle investor exit demands.

Regulatory Response

Turkey's Capital Markets Board (SPK) issued new guidance in August to address investor concerns about unusual stock movements. The move triggered sharp capital outflows from some funds. In November 2025, Treasury and Finance Minister Mehmet Şimşek confirmed manipulation allegations in some funds without naming them and pledged action. Global index providers MSCI and FTSE warned that artificial price movements in stocks could threaten Turkey's emerging market status.

Market Impact

Investors pulled approximately 213 billion lira ($4.7 billion) from Turkish investment funds between Aug. 31 and Sept. 16, according to Fintables data. Stocks on Borsa Istanbul recorded their sharpest drop in more than a year on Sept. 15. More than 350,000 citizens' savings are at risk in funds slated for liquidation.