Not exact matches
At
least 30 % of the fund's total assets must be invested in Weekly
Liquid Assets, which can consist of cash, direct obligations of the U.S. government such as U.S. Treasury bills, certain other U.S. government agency debt that is issued at a discount and matures within 60 days or less, or
securities that will mature or are payable within 5 business days.
For taxable funds, at
least 10 % of the fund's total assets must be invested in Daily
Liquid Assets, which can consist of cash, direct obligations of the U.S. government, or
securities that will mature or are payable within one business day.
This allows the fund to hold these private
securities without the regulation of the typical open - ended fund that is required to have at
least 85 % of the fund
liquid.
To the extent a Fund sells
securities short, it will provide collateral to the broker - dealer and (except in the case of short sales «against the box») will maintain additional asset coverage in the form of cash, U.S. government
securities or other
liquid securities with its custodian in a segregated account in an amount at
least equal to the difference between the current market value of the
securities sold short and any amounts required to be deposited as collateral with the selling broker.
All put options a fund writes will be covered, which means that a fund will earmark or segregate cash, U.S. government
securities or other
liquid securities with a value at
least equal to the exercise price of the put option, or will otherwise «cover» its position as required by the Investment Company Act of 1940, as amended (the 1940 Act)(e.g., the fund will hold a put option on the same underlying
security with the same or higher strike price).
All put options the fund writes will be covered, which means that the fund will earmark or segregate cash, U.S. government
securities or other
liquid securities with a value at
least equal to the exercise price of the put option, or will otherwise «cover» its position as required by the Investment Company Act of 1940, as amended (the 1940 Act)(e.g., the fund will hold a put option on the same underlying
security with the same or higher strike price).
Liquid Funds - It is a variant of mutual fund in which the investment is made in those short - term market instruments that have the
least volatility such as government
securities and treasury bills.