Turnover ratio

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Related to Turnover ratio: Fixed asset turnover ratio, Receivables turnover ratio, Asset Turnover Ratio

Turnover Rate

The ratio at which a fund or portfolio trades the securities in it. A higher turnover rate indicates active management; if it becomes very high, this may indicate that the broker or manager is trading securities for the sake of collecting more in fees. It is calculated as the trading volume of the fund or portfolio as a percentage of the entire portfolio. See also: Prudent person rule.

Turnover ratio.

A mutual fund's turnover ratio measures the percentage of holdings that the fund sells, or turns over, in a year.

For example, if a stock fund manager has a portfolio of 100 stocks at the beginning of the year, sells 75 of them and buys 75 different stocks, the turnover rate of the fund is 75%.

Some investors look for funds with lower turnover ratios, since limited trading may help to minimize capital gains taxes and trading costs. However, a high turnover ratio can also produce strong returns, which can offset the added costs and produce a net gain.

References in periodicals archive ?
Concerning private credit, the turnover ratio, the total value traded, the market capitalization and liquid liabilities, the results of the ILT test conclude that they are stationary around a shift in the mean.
Larger managers continue to see their turnover ratios drop.
We gave different weights to each parameter-40% to mid-cap and small-cap exposure, 30% to portfolio turnover ratio, 20% to cash holding and 10% to volatility in returns.
A low turnover ratio means a lower expense ratio, as every time a fund manager makes a transaction he pays brokerage fee and securities transaction tax.
Total assets turnover ratio (AT): It shows a company's ability to effectively utilize its assets in income generation.
The operational I efficiency has been analyzed with the help of indicators which reflect the efficiency in the use of working of capital and its components, the indicators used are Inventory Turnover Ratio (ITR) i.
The receivables turnover ratio indicates how rapidly an enterprise receives payments for goods and services delivered (sales / amounts receivable in one year).
You are correct that the turnover ratio is typically very low.
About 20% of the indebted Bulgarian companies have defined their debts as "large"; the only criteria for that was each firm's debt to turnover ratio.
Because [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] can be positive or negative, it follows that the equilibrium unit cost of talent under win maximization [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] can be above or below the marginal revenue [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII], depending on the size of the wage- turnover ratio [?
However, the extensive work of Friend et al (1970), report no significant relation between performance and expense ratio and only a slight positive relation with turnover ratio.
Despite the decline in trading value, the turnover ratio in 2009 had maintained its 2008 levels as shares' turnover reached 91.