Lone Star Investment Pool March 2025 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
March 31, 2025—The uncertainty of widespread tariffs weighed on the markets, pushing Treasury yields and equity prices lower. The two-year note led the decline, falling by 11 basis points (bps). The Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes declined -4.2%, -5.8%, and -8.2%, respectively. Non-farm payrolls (151,000) fell short. The slowdown in government hiring is being partially offset by private payrolls. The unemployment rate for February ticked higher to 4.1% (from 4%) even as the labor force participation rate eased to 62.4% from 62.6%. President Trump has announced a 25% tariff on autos and auto parts, effective April 3. Trade policy is leading to a decline in consumer confidence with the expectations index hitting a 12-year low in March. The Federal Reserve (Fed) kept policy on hold at 4.25% to 4.50%, but the median expectation, of Federal Open Market Committee (FOMC) members, is for two (25 bps) rate cuts by the end of 2025.
Lone Star Investment Pool Active Participants March 2025
- Schools and colleges: 602
- Other Governmental Entities: 90
- Total: 692
Fund Performance
The following fund performance data is as of March 31, 2025.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.33%
- SEC 7-day Fund Yield (b) 4.33%
- Weighted Average Maturity One (c) 26 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
- Cash/Repo 41%
- Agencies 38%
- Treasuries 17%
- Money Market 4%
Total Assets
- Book Value 8,045,258,538.70
- Market Value 8,045,976,777.46
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 4.45%
- SEC 7-day Fund Yield (b) 4.45%
- Weighted Average Maturity One (c) 44 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 86%
- Money Market 8%
- Cash/Repo 6%
Total Assets
- Book Value 4,258,242,093.29
- Market Value 4,258,323,756.17
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 4.49%
- SEC 7-day Fund Yield (b) 4.49%
- Weighted Average Maturity One (c) 53 days
- Weighted Average Maturity Two (c) 83 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 97%
- Money Market 2%
- Cash/Repo 1%
Total Assets
- Book Value 13,613,883,338.76
- Market Value 13,614,529,658.59
(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.
The Lone Star Information Statement should be read carefully before investing. Investors should consider the investment objectives, risks, charges, and expenses associated with this or any security prior to investing. Investment in Lone Star Investment Pool is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency, and although Lone Star seeks to preserve the value of the investment at a fixed share price, it is possible to lose money by investing in Lone Star. For further information or for an Information Statement, contact First Public at 800-558-8875. The return information is net of all current operating expenses. The return represents past performance and is no indication of future results.
First Public is a registered broker dealer with the Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the Municipal Securities Rulemaking Board. First Public is not acting as a municipal advisor and is not providing advice or recommending any action to any municipal entity (including governmental entities under Section 15B of the U.S. Securities Exchange Act) or any of such entity’s obligated persons. First Public does not assume or owe any fiduciary duty under Section 15B of the U.S. Securities Exchange Act with respect to the information contained herein. Please consult your professional and legal advisors and fiduciaries before acting on any of this information.