Portfolio Turnover Calculation

If you watch the portfolio turnover statistics carefully, you will suddenly notice some different numbers. I’m using a different calculation for the portfolio turnover. It is defined as:

The rate of trading activity in a fund’s portfolio of investments,
equal to the lesser of purchases or sales, for a year, divided by average total assets.

I simplified the calculation of average assets by always adding the beginning and ending total value of a Portfolio (or Simulation) and dividing it by 2. If someone has a different way to calculate turnover let me know.

Portfolio’s statistics are calculated nightly, so you should see a different turnover value tomorrow. As far as simulations, you will have to re-run them to see the change.

Hi Marco

Is this still the same calculation for turnover? So the actual USD traded turnover is effectively the annual turnover x 2, because once invested every USD new buy requires a USD sell? I assume it does not include cash transactions, dividend, etc… Can I find anywhere the actual total buy or sell amounts (plus %) or only if you download the data into excel. Is there a difference between book and portfolio turnover in the calculations?

Thanks for clarifying or providing the actual formula.

Also, why aren’t there any turnover numbers for sim books? It would be great to see them as well to have a better idea of the turnover before converting it into a live book.

Thanks
Whotookmynickname

Thanks Marco and team for all the new features and constantly improving P123! The tool is really awesome!

I am just following up:

  1. Could you please share or confirm the turnover calculation formula for portfolios and books?
  2. Could you please add turnover numbers to simulation books please?

Thank you so much!