Glossary › Redemption gate
A redemption gate caps how much money a fund pays out in total per dealing date – usually as a percentage of net asset value.
Semi-liquid funds invest in companies, loans, infrastructure or property that cannot be sold overnight. The gate protects the investors who stay invested: if more investors want to leave on a dealing date than the fund can pay from its liquidity, it does not have to sell under pressure. If requests exceed the limit, all of them are scaled back pro rata; depending on the prospectus, the unmet part is carried forward to the next dealing date or lapses and has to be submitted again.
A gate in the prospectus is not a problem in itself – it is the rule for the case where many want out at once. Three questions matter: what the limit refers to (net asset value or available liquidity), whether it applies per dealing date, per quarter or per year, and what happens to the part that was cut. Whether a gate has actually been triggered only the fund’s history shows.
134 of the 139 active funds in the database state a gate in the prospectus, 102 of them relative to net asset value. The median is 5%, the range runs from 1% to 80%. 6 funds are currently actually restricting redemptions.
Lowest, middle and highest gate · as at 16 Oct 2026
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