Lone Star Investment Pool December 2024 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
December 31, 2024—The US Treasury yield curve steepened in December as yields on securities maturing in less than a year fell up to 34 basis points (bps) while longer maturing bond yields rose up to 42 basis points. Despite reaching all-time highs in early December, the equity markets closed the month mixed as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes returned -5.3%, -2.5%, and 0.5%, respectively. The Federal Open Market Committee (FOMC) cut the target rate by 25 bps at the December 18 meeting. While the Federal Reserve’s (The Fed)statement had minimal changes from the prior meeting, there was a tweak to the “extent and timing” language, suggesting the pace of cuts in 2025 may be slower than previously anticipated. There were also upward revisions in both the growth and inflation forecasts. At the end of December, The Fed funds futures market was indicating two or three cuts of 25 bps in 2025.
Lone Star Investment Pool Active Participants December 2024
- Schools and colleges: 599
- Other Governmental Entities: 89
- Total: 688
Fund Performance
The following fund performance data is as of December 31, 2024.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.54%
- SEC 7-day Fund Yield (b) 4.46%
- Weighted Average Maturity One (c) 24 days
- Weighted Average Maturity Two (c) 93 days
- Portfolio Maturing beyond One Year 8%
- Net Asset Value (NAV) $1.00
- Annualized Expense Ratio 0.06%
- Standard & Poor’s Rating AAAm
Investment Distribution
- Agencies 39%
- Cash/Repo 36%
- Treasuries 17%
- Money Market 8%
Total Assets
- Book Value 7,857,069,184.36
- Market Value 7,858,162,756.66
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 4.73%
- SEC 7-day Fund Yield (b) 4.66%
- Weighted Average Maturity One (c) 36 days
- Weighted Average Maturity Two (c) 69 days
- Portfolio Maturing beyond One Year 0%
- Net Asset Value (NAV) $1.00
- Annualized Expense Ratio 0.06%
- Standard & Poor’s Rating AAAm
Investment Distribution
- Commercial Paper 81%
- Money Market 15%
- Cash/Repo 4%
Total Assets
- Book Value 3,531,165,714.30
- Market Value 3,531,677,810.61
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 4.77%
- SEC 7-day Fund Yield (b) 4.71%
- Weighted Average Maturity One (c) 53 days
- Weighted Average Maturity Two (c) 99 days
- Portfolio Maturing beyond One Year 0%
- Net Asset Value (NAV) $1.00
- Annualized Expense Ratio 0.06%
- Standard & Poor’s Rating AAAf/S1+
Investment Distribution
- Commercial Paper 94%
- Money Market 5%
- Cash/Repo 1%
Total Assets
- Book Value 10,216,118,370.06
- Market Value 10,218,134,855.52
(a) The return information represents the average annualized rate of return on investments for the time period referenced. Return rates reflect a partial waiver of the Lone Star Investment Pool operating expense. Past performance is no guarantee of future results.
(b) SEC 7-Day Yield Calculation: Yield=2 [[a-b/cd +1]6 -1]
a - Dividend and interest income
b - Expenses accrued for the period
c - Average daily number of shares outstanding during the period that was entitled to dividends
d - Maximum offering price per share on the last day of the period
(c) The Weighted Average Maturity One calculation uses the industry standard definition of state maturity for floating rate instruments, the number of days until the next reset date. The Weighted Average Maturity Two calculation uses the final maturity of any floating rate instruments, as opined in Texas Attorney General Opinion No. JC0359.