Portfolio turnover rate

(redirected from Portfolio Turnover Rates)

Portfolio turnover rate

For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Portfolio Turnover Rate

The ratio at which a 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 fees. It is calculated as the trading volume of the portfolio as a percentage of the entire portfolio. See also: Prudent person rule.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Mentioned in ?
References in periodicals archive ?
institutional investors' (126) portfolio turnover rates spanning
calculation of mutual fund portfolio turnover rates
(25.) The US calculation of mutual fund portfolio turnover rates is
portfolio turnover rate may indicate higher transaction costs and
portfolio turnover rate was--% of the average value of its
(2) The average portfolio turnover rate for an actively managed
the impact the portfolio turnover rate has on total returns.
objective and may have a portfolio turnover rate of over 100% annually.
(55.) The SEC noted that "a higher portfolio turnover rate
The results contribute to the literature by demonstrating the determinants of the portfolio turnover rates and the factors that distinguish investment funds.
The good news is that services provided by a DIM are not considered designated investment alternatives subject to detailed participant disclosure about expense ratios, performance history, portfolio turnover rates, etc.
(b) Portfolio turnover rate is calculated by relating total new purchases and sales of stock to the average real capital of each fund in a year; the figures refer to the average annual rate over a three-year period (1987-89).