A measure of the rate of trading activity for a fund during the previous year. It is shown as a percentage of the average total assets of the fund. For example, a turnover rate of 20% means that the value of trades represented one-fifth of the assets of the fund. However, a turnover ratio of 100% or more does not necessarily suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the proportion of the portfolio´s holdings that have changed over the past year.
