Glossary › Proration

Proration: when redemption requests are scaled back pro rata

Proration means that, when a gate is triggered, a fund cuts every redemption request by the same percentage instead of serving them in order of receipt.

Funds scaling back pro rata3
with a rate per dealing date2
Ongoing restrictions6
As at16 Oct 2026

Explanation

If the redemption requests for a dealing date exceed the fund’s limit, each investor receives the same share of their request. We call this share the fulfilment rate: with requests of 10% of net asset value and a 5% limit, around 50% of each request is paid. This is fair because nobody who applied earlier is favoured – a race for the exit should not pay off.

For the individual investor, what happens to the rest is decisive. Some funds carry it forward automatically to the next dealing date, others let it lapse; the request then has to be submitted again and competes with everyone else once more. If requests rise from one dealing date to the next, the rate falls and the exit stretches over several quarters. The gating monitor shows how high rates turn out in practice.

In the database

3 funds in the database are currently scaling back redemption requests pro rata. For 2 of them, fulfilment rates per dealing date have been published; the latest reported range from 0.0% to 20.6%.

Funds currently scaling back pro rata · as at 16 Oct 2026

Read on

the gating chapter · gating monitor · all terms in the glossary