Caruso allows fund managers to manage investor liquidity by creating, approving, and processing redemption requests within the Admin App. Redemptions can be created and processed in bulk, use a dedicated redemption price, and follow a governance workflow that gives your team full control over when and how redemptions are completed.
Before you begin: set the redemption price
Caruso stores a dedicated redemption price at the unit class level, held as a time-series history and separate from the unit value and issuance price.
Set the redemption price for each unit class before you begin redeeming, otherwise you will hit a warning when processing the batch. To add a redemption price:
In the navigation pane, select Funds.
Select the fund you would like to add the price to.
Open the Classes tab and select the unit class you would like to add the price to.
Open the Redemption Price tab.
Add the redemption price with its effective date.
The price is applied when a batch is processed: the admin sets a pricing as at date, which is the date used to look up the redemption price for each class. This allows you to process a batch using last month's price, or any other date for which a price has been recorded.
Note: If no redemption price exists for a class, Caruso surfaces a warning and falls back to the unit class unit value, or allows a manual override. Setting the price up front avoids this interruption later in the flow.
Tip: For funds that consistently use $1.00 per unit, a quick way to set up redemption prices is to give the fund admin agent the following prompt:
Check all funds and identify any unit classes that do not have a redemption price set. For each unit class missing a redemption price, create a redemption price of $1.00 with an effective date equal to the date that unit class was created.
The redemption lifecycle
Every redemption moves through three states:
Requested – The order has been created but no units have moved. Orders can be edited in this state.
Approved – The order has passed a review gate. Approval has no side effects: no unit movement, no investor notices, and no financial impact. It simply confirms the request is ready to be included in a batch.
Completed – The order has been included in a confirmed batch. Units have moved, Redemption Notices have been sent, and a final payment file is available
Step 1: Create a Redemption Request
There are two ways to create a redemption request, depending on whether you are redeeming through an Investing Entity or a Fund.
Investing Entity Redemptions:
Investing Entity Redemptions:
In the navigation pane, select Investing Entities
Click the relevant investing entity.
Select the Holdings tab.
Tick the holding you wish to redeem.
In the selection bar, click Actions and select Create redemption requests.
Fund Redemptions:
Fund Redemptions:
In the navigation pane, select Funds.
Navigate to the relevant fund.
Open the Holdings tab.
Tick the holding you wish to redeem.
In the selection bar, click Actions and select Create redemption requests.
IMPORTANT: Holdings must share the same unit class within each bulk action. If your selection includes holdings from different unit classes, Create redemption requests is disabled and Caruso displays the message "Selected holdings must all belong to the same unit class." Remove the holdings from other unit classes, or use the Unit Class filter to narrow the table before selecting.
Step 2: Complete the Redemption Form
Enter the following details:
Redemption date – the date the request is created against. Enter according to your fund's processing schedule (e.g. T+1, T+0).
Fund – pre-populated from the selected holdings.
Class – pre-populated from the selected holdings.
Investing entity – shows the number of investing entities included in your selection.
Calculation – choose how the amount is applied:
Dollar Value (Pro-rata) – a total dollar amount, apportioned across the selected holdings.
Units (Pro-rata) – a total unit count, apportioned across the selected holdings.
Percentage – a percentage applied individually to each holding.
How amounts are apportioned across holdings
How amounts are apportioned across holdings
When you redeem across multiple holdings using Dollar Value (Pro-rata) or Units (Pro-rata), Caruso apportions the amount based on each holding's share of current units.
Each holding's share = (holding's unit balance ÷ total units across all selected holdings) × total input value
Percentage is never split. The same percentage is applied individually to each holding.
Apportionment and residuals: After rounding, a small residual may remain. This is resolved using fractional-remainder ranking: holdings closest to rounding up receive surplus pennies or units first, and holdings furthest from rounding up are adjusted first for a negative residual. Ties are broken by unrounded entitlement, then holding ID.
Amount – enter the dollar value, unit count, or percentage, depending on the calculation you selected.
Note (optional):
Classification (optional) – apply a classification to the request
Click Next
Notification Preference
Toggle this on or off depending on whether you need to send an email notification to your investors.
Click Confirm after reviewing
Once clicked, the redemption will begin processing in the background. You can monitor the progress from the Operations panel in the top-right corner of the Admin App.
How “Available Units” Are Calculated
How “Available Units” Are Calculated
Holdings as at the selected (backdated) date – any redemptions (including future-dated redemptions).
Example
As of 11 April, Tracey holds 50,000 units, made up of:
25,000 units issued on 1 March
25,000 units issued on 5 April
A future-dated redemption of 25,000 units is scheduled for 15 April.
If you review her available units as at 1 April (for example, to process a transfer on that date):
On 1 April, Tracey only held 25,000 units (the March issuance).
Because there is a future-dated redemption of 25,000 units, the system deducts that amount.
Result: 0 available units, since future redemptions are subtracted, while unit issues after the selected date are not yet considered.
Note: Classifications will appear in Admin App reports, Redemption Notices, and Paypacks.
Step 3: Approve redemption requests
Approval is a review gate. It confirms each request is ready to be included in a batch. No units move, no investor notices are sent, and there is no financial impact. Only orders in the Requested state can be approved.
In the navigation pane, select Funds and navigate to the relevant fund.
Open the Orders tab.
Tick the Requested orders you wish to approve. To approve a single order, you can instead click the ellipsis (...) next to it.
Note: If your selection includes any order that is not Requested, the Approve redemption request action is greyed out with the tooltip "Update selection to enable." Deselect the ineligible orders to continue.
Click Actions and select Approve redemption request. An approval sheet opens.
Review the summary of the selected orders, which shows the redemption date, fund, class, investing entity, and order details. Where multiple orders are selected, fields that differ show a count (for example, "3 investing entities selected").
Under notification preferences, choose whether to send the Redemption Request Approved email to investors.
Click Confirm. The selected orders move to the Approved state, and a confirmation message shows how many orders were approved.
Tip: To cancel requests instead, select them and choose Cancel from the Actions menu. You can cancel orders in either the Requested or Approved state.
Step 4: Open the batch configuration
A batch groups your approved orders together so they can be priced and processed as one. Only orders in the Approved state can be processed.
In the navigation pane, select Funds and navigate to the relevant fund.
Open the Orders tab.
Tick the Approved orders you wish to process.
Click Actions and select Process redemption batch. The batch configuration opens.
Note: If your selection includes any order that is not Approved, the Process redemption batch action is greyed out with the tooltip "Update selection to enable." Deselect the ineligible orders to continue.
Step 5: Configure the batch
Set the batch details. This is the stage where the redemption price and dates are applied.
Enter the following:
Batch name - Auto-generated as
Redemption batch - [date]. Can be updated if needed.Redemption date – defaults to processing each order on its own requested date. You can override this to apply a single date to every order in the batch.
Processing mode – choose one:
Process as requested – redeem exactly the amount in each order.
Scaleback – reduce the total across all orders. When selected, choose the Allocation method (Pro-rata (by %) at launch) and enter the Total amount to redeem. This must be greater than $0.00 and less than the total requested.
Pricing source – uses the Class redemption price, the only option at launch.
Pricing as at date – the date used to look up the redemption price for each class. Defaults to the order's redemption date where all selected orders share the same date, otherwise to today.
Redemption Price - The Class redemption price for each class, based on the selected Pricing as at date.
Payment date – the date payment is to be made to investors. This is printed on Redemption Notices and included in the payment pack.
Notice date – the date Redemption Notices are sent to investors. Defaults to today.
Commentary (optional) – free text printed on all Redemption Notices in the batch.
Once the fields are set, click Confirm to create the draft batch.
Note: If no redemption price exists for a class on the Pricing as at date, Caruso blocks the batch with the message "No redemption price found for [Class] on [Pricing as at date]. Select a different pricing as at date." Setting the redemption price up front avoids this (see Before you begin).
Step 6: Review the draft batch
Creating the batch opens the draft batch detail view. Nothing has moved yet, and the draft is fully reviewable and reversible.
Review the batch summary and the per-order detail table. The table shows each order's request type, units to redeem, redemption price, final redemption amount, scaleback percentage, bank account and each investors redemption notice.
Use the draft actions to check your work:
Edit – return to the configuration to change any setting.
Recalculate – re-run the batch against the latest redemption prices and holdings.
Download reports: Download the available draft files to review before confirming:
Redemption audit report: A reconciliation report containing the full batch detail, including every order in the batch.
All redemption payments CSV (DRAFT): Generated for non-Australian payments, or where the payer bank account is not Australian. This file will still need to be converted to your bank's required format before payment.
Redemption payment pack ZIP (DRAFT): A draft payment pack containing the files used for payment processing. Where both the payer and payee bank accounts are Australian, the pack includes ABA files ready to upload to the bank.
Delete batch: Use this if an order or investor needs to be removed from the draft batch. Deleting the draft does not move units. It removes the batch and returns the orders to the Approved state. You can then update the selection and process the approved orders again into a new draft batch.
Note: If any underlying data has changed since the draft was created, Confirm is disabled until you click Recalculate.
Step 7: Confirm the batch
Confirmation is the point at which units move. It cannot be undone, so check all details first. A second admin with approve permissions completes this step.
Click Confirm. A confirmation dialog opens showing the batch summary.
Set your notification preferences:
Notify associated investors by email – sends a Redemption Completed email to each investor.
Publish statements to the investor portal – publishes the Redemption Notice to the portal.
Update the Processing date here if needed.
Review the warnings. Caruso confirms that "Redemption notices and emails will be generated on the processing date provided. This action cannot be reversed." It also flags any investing entities with no bank account on file, and any holdings with DRP enabled that are being fully redeemed.
Click Confirm to complete the batch.
Once confirmed, the batch status changes to Confirmed and every order moves to Completed. Units move automatically, Redemption Notices are generated, and the Redemption Completed emails are sent if enabled. The batch detail becomes read-only, and the final audit report and payment pack are available to download.
Step 8: Download the payment file
The payment files are generated directly from the batch and are available from both the draft and confirmed batch.
Use the correct file depending on the payment type:
All redemption payments CSV (DRAFT): Generated for non-Australian payments, or where the payer bank account is not Australian. This file will still need to be converted to your bank's required format before payment.
Redemption payment pack ZIP (DRAFT): A draft payment pack containing the files used for payment processing. Where both the payer and payee bank accounts are Australian, the pack includes ABA files ready to upload to the bank.
For more information on how payments work, see Distribution and Redemption Payment Packs.
Note: Redemptions tagged as related party or related fund are excluded from payment, as no cash is required.
Understanding outgoing bank accounts at the fund level
Understanding outgoing bank accounts at the fund level
By default, all unit classes use the fund's outgoing bank account for distributions and redemption payment file generation.
To add additional outgoing bank accounts, go to Fund > Bank Accounts and select Add new outgoing bank account.
To assign a different outgoing bank account to a specific unit class, see Create and Manage Unit Classes.
View redemption batches
Draft and confirmed redemption batches can be viewed at any time from the Redemption Batches tab within the fund. This includes a history of the final audit report and payment files.
Investor notifications
When a batch is confirmed, investors receive a Redemption Notice by email and, if published, on the Investor Portal.
Note: The Unit Redemption Notice is saved within the investing entity's records. Admin users can choose to publish it to the Investor Portal.
Tip: To allow investors to redeem units, open the fund's Settings tab and turn on Redemptions. Once enabled, investors in this fund can submit redemption requests through the investor portal. For more information, see How Investors Can Redeem Units.
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If you have any questions or need help at any stage, please contact our Caruso Support team either by email or live chat.