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Mutual funds must maintain sufficient liquidity in their portfolios to be able to meet redemption requests. The SEC requires mutual funds and open-end ETFs to have a liquidity risk management program under which the fund assesses, manages, and periodically reviews its liquidity risk. These funds also must determine a minimum percentage of its net assets to invest in “highly liquid investments” and limit their purchases of illiquid securities. The board is required to: (i) approve the liquidity risk management program; (ii) approve the designation of the administrator for the program; (iii) review (at least annually) written reports about the program; and (iv) oversee compliance with the highly liquid investment minimum and illiquid investment limit.