Tuesday, 02 January 2024 12:17 GMT

Türkiye Approves Interim Investor Payments for Funds Under Liquidation


(MENAFN) Türkiye’s Capital Markets Board, SPK, has approved interim payments of up to 1 million Turkish liras, equivalent to about $20,394, for eligible investors in funds managed by Tera, Pusula, Atlas and Hedef portfolio management companies that are currently undergoing liquidation.

According to the board’s latest bulletin, the payments will serve as advances toward the amounts investors are ultimately expected to receive once the liquidation process is fully completed.

The interim payments will be available to fund unit holders whose account reconciliation has already been completed. The amount paid to each investor will be determined according to their net investment value as calculated by Türkiye’s Central Securities Depository, MKK.

Investors whose net holdings are below 1 million liras will receive the full amount of their eligible net investment. For investors with net investments of 1 million liras or more, the interim payment will be limited to 1 million liras.

The payment process will initially focus on money market funds. During this interim stage, investors’ fund units will remain in circulation and will only be redeemed once the final liquidation payments are made.

The SPK has also established the order in which funds managed by A1 Capital, Bulls and Pardus portfolio management companies will be liquidated.

Under the framework, money market funds will be handled first, followed by other funds in descending order based on the number of investors they have.

Once the liquidation procedures are completed, funds that are not themselves undergoing liquidation but whose trading was suspended under decisions issued by the board on Sept. 17 may resume transactions.

The reopening could take place simultaneously across all available distribution channels, covering purchases, sales or both depending on the applicable conditions.

The portfolio management companies that established the funds will determine when trading resumes and what conditions will apply. Their decisions will take into account factors including the composition of each fund’s portfolio, available liquidity, prevailing market conditions and the interests of investors.

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