Some 43,000 investors in 17 Turkish investment funds caught up in a manipulation investigation have had their money transferred to their banks, Treasury and Finance Minister Mehmet Şimşek announced Thursday.
Speaking at the National Vision in Economy and Finance Summit in Istanbul, Şimşek said the funds, which were in ordinary liquidation, had been wound up with priority given to money market funds and small savers. The government’s Communications Directorate named the funds as products of three asset managers: A1 Capital Portföy, Bulls Portföy and Pardus Portföy.

"No need to worry"
Şimşek put the combined size of the funds with inflated valuations at about 0.7% of national income, stressing that the figure does not represent losses in full. "There is no need at all to worry about capital markets; there is no systemic risk," he said. In all, seven portfolio management companies are involved; three are in ordinary liquidation, and resolving the others may take longer.

Tougher rules ahead
"Everyone engaged in market-disrupting activity will be held accountable before the law," Şimşek said, adding that a new bill would be sent to parliament and further legal and administrative measures would be taken in fund markets. A day earlier, ruling party spokesman Ömer Çelik said a fund coordination board was preparing an action plan for affected investors.