Definitions for "Allocation rate"
When money is paid into a fund (such as a pension fund) the allocation rate is the percentage of the money left which can be invested after the charges have been taken off. For example, if the charges were 2% the allocation rate would be 98%.
The percentage of a contribution used to buy units for investment purposes. The percentage will vary depending on factors such as the type of contract, time to maturity, commission and amount of contribution.
The percentage of the clients's money that is actually invested in the policy after the initial charges have been taken out.