Glossary
Liquidity bucket
A liquidity bucket is a category of holdings grouped by how quickly they can be turned into cash, with limits set per category.
Liquidity buckets sort holdings by time to cash: for example within a day, within a week, within a quarter, and illiquid. A policy then sets limits per bucket. Examples: at least 25% available within 30 days; no more than 15% illiquid.
US open-end funds use a statutory version. SEC Rule 22e-4 requires each investment to be classified as highly liquid, moderately liquid, less liquid or illiquid. A fund may not acquire an illiquid investment if, immediately afterwards, more than 15% of its net assets would be illiquid.
In Acclimetry’s liquidity bucket limit, the bucket is a configured class category and its weight is tested against a band. Example: illiquid holdings of 400 in a 1,000 portfolio are 40%, a breach of a 30% cap. Where liquidity must be judged holding by holding, the illiquid assets limit reads an approved input instead.
See also
Sources
- SEC Rule 22e-4, 17 CFR 270.22e-4 (liquidity risk management programs), via Cornell LII · public domain · Read on12 October 2026
- Acclimetry rule-template registry (32 templates, methodology options, reason codes and 108 engine-checked cases; backend commit 8197063) · cite only · Read on12 October 2026