Turnover, or portfolio turnover, is the lesser of purchases or sales, excluding cash instruments, annualized and divided by average assets under management (AUM). For our standard calculation, purchases and sales are based on net purchases or sales at the security level.

For example, if, during a single month, a fund with $100 million in AUM purchased $2 million worth of securities and sold $1 million, then the turnover would be

($1 million/month) x (12 months/year) / $100 million = 12%.

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