Lone Star Investment Pool November 2024 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
November 30, 2024—Despite a bit of volatility, US Treasury yields finished November slightly lower. The US equity markets continued to reach all-time highs as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes gained 7.5%, 5.3%, and 6.2%, respectively. The Federal Reserve (Fed) cut interest rates by 25 basis points (bps), as was widely expected, to a range of 4.50% to 4.75%. The cut was less than September’s 50 bps rate reduction but continues the Fed’s cutting cycle. During Fed Chair Powell’s press conference, he noted that, even with the cut, policy remains restrictive and that, “We don’t need further labor market cooling to achieve the inflation goal.” In the minutes of the Federal Open Market Committee (FOMC) meeting, it was revealed that almost all committee participants saw risks to employment and inflation as balanced and thought policy rates would likely gradually move toward a more neutral stance over time. Some thought a pause might be appropriate, and some remarked that policy easing could be accelerated. On the economy, the staff revised up their assessment of potential GDP growth due to recent productivity gains. The next FOMC meeting is scheduled for December 18. At the end of November, the market was pricing-in approximately a 66% probability of a 25-bps rate cut at the meeting.
Lone Star Investment Pool Active Participants November 2024
- Schools and colleges: 599
- Other Governmental Entities: 92
- Total: 691
Fund Performance
The following fund performance data is as of November 30, 2024.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.70%
- SEC 7-day Fund Yield (b) 4.62%
- Weighted Average Maturity One (c) 22 days
- Weighted Average Maturity Two (c) 111 days
- Portfolio Maturing beyond One Year 10%
- Net Asset Value (NAV) $1.00
- Annualized Expense Ratio 0.06%
- Standard & Poor’s Rating AAAm
Investment Distribution
- Cash/Repo 43%
- Agencies 40%
- Treasuries 15%
- Money Market 2%
Total Assets
- Book Value 5,998,532,554.05
- Market Value 5,999,120,861.75
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 4.88%
- SEC 7-day Fund Yield (b) 4.81%
- Weighted Average Maturity One (c) 41 days
- Weighted Average Maturity Two (c) 80 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 84%
- Cash/Repo 14%
- Money Market 2%
Total Assets
- Book Value 3,383,331,467.77
- Market Value 3,383,567,909.23
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 4.90%
- SEC 7-day Fund Yield (b) 4.84%
- Weighted Average Maturity One (c) 55 days
- Weighted Average Maturity Two (c) 103 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 96%
- Cash/Repo 3%
- Money Market 1%
Total Assets
- Book Value 9,406,912,128.96
- Market Value 9,407,843,488.24
(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.