Liquidation (Fund Liquidation)
Contents
Key Points
- These include expiry of a term set in the prospectus, notice of termination by the founder of an open-ended fund with CMB approval, the founder losing its operating conditions, and a CMB finding that continuing the fund is not in investors’ interest.
- Liquidation does not mean the fund’s assets have disappeared; they are held by the portfolio custodian, separate from the founder’s own assets.
- the liquidation period depends on the decision; for the 2026 decision the three-month period in bulletin 2026/61 was extended to six months by bulletin 2026/62, and the CMB may extend it further.
How It Works
once liquidation is decided the fund accepts no new subscriptions and may be closed to trading on TEFAS. The liquidator sells the portfolio; after expenses the remaining cash is paid to unitholders in proportion to their units. Under the communiqué the liquidation balance may be paid only to unitholders.
Worked Example
Suppose a fund with 10,000,000 units outstanding is left with TRY 25,000,000 in cash after liquidation costs. The liquidation balance per unit is 25,000,000 / 10,000,000 = TRY 2.50; an investor holding 4,000 units receives 4,000 × 2.50 = TRY 10,000.
The figures are hypothetical values chosen to explain the concept; they are not data for any real fund, stock or market.
Interpretation
A terminated fund is liquidated under its internal rules and prospectus.
Liquidation does not mean the fund’s assets have disappeared; they are held by the portfolio custodian, separate from the founder’s own assets. What an investor receives depends on the prices achieved and the liquidation costs and can differ from the last published unit price. With bulletin 2026/60 of 17 September 2026 the CMB ordered the liquidation of certain funds of seven portfolio management companies, and bulletin 2026/61 of the same day updated the fund list and set the liquidation procedure; the affected funds and official sources are listed on the Liquidated funds page.
Pitfalls
the liquidation period depends on the decision; for the 2026 decision the three-month period in bulletin 2026/61 was extended to six months by bulletin 2026/62, and the CMB may extend it further. Selling assets quickly can depress prices, and payments may be made in instalments rather than at once. Rely only on official CMB, KAP and liquidator announcements for timing and rights; this page is not legal advice.
Official Sources
Official regulation and sources the definition is based on.
Pages Where This Term Appears
Related Terms
Frequently Asked Questions
What is Liquidation (fund liquidation)?
Liquidation is the process of winding up an investment fund: the portfolio is sold for cash and the remaining liquidation balance is distributed to unitholders in proportion to their units.
How does Liquidation (fund liquidation) work?
once liquidation is decided the fund accepts no new subscriptions and may be closed to trading on TEFAS. The liquidator sells the portfolio; after expenses the remaining cash is paid to unitholders in proportion to their units. Under the communiqué the liquidation balance may be paid only to unitholders.
Prepared by: Yatırımcı.AI Research TeamLast reviewed: Method: MethodologyEditorial policy