Study finds portfolio turnover rates higher than claimed

Nearly two-thirds of institutional investor-focused investment strategies exceeded their expected turnover from June 2006 through June 2009. Of these strategies, the turnover was on average 26% higher than anticipated, with some strategies reporting turnover between 150 and 200% more than expected   The report from Mercer demonstrates that investment managers themselves underestimate turnover and often do not live up to their stated claims when it comes to the holding periods for the stocks in their portfolio. The study, funded by the not-for-profit IRRC Institute examines the investment ...