Lone Star Investment Pool October 2024 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
October 31, 2024—In October, US Treasury yields increased up to 60 basis points (bps) on bonds maturing beyond one year as the market priced-in a less aggressive easing cycle as originally anticipated. Despite hitting all-time highs in the middle of the month, the US equity markets closed the month with losses as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes declined by 1.4%, 1.0%, and 0.5%, respectively. Following the September Federal Open Market Committee (FOMC) meeting, which saw a surprising 50 bps rate cut, the fed funds futures market was pricing in 75 bps of additional cuts in 2024 and 125 bps more in 2025. Early in October, those expectations declined due to a very strong labor report for September. Other labor reports that followed, including the ADP report, weekly claims, and the October report, indicated that the labor market was softening, but not crumbling. The inflation data indicated that prices are slowly approaching the Fed’s target. At the end of October, the market was pricing in cuts of 25 bps at each of the final two FOMC meetings in 2024.
Lone Star Investment Pool Active Participants October 2024
- Schools and colleges: 599
- Other Governmental Entities: 91
- Total: 690
Fund Performance
The following fund performance data is as of October 31, 2024.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.90%
- SEC 7-day Fund Yield (b) 4.87%
- Weighted Average Maturity One (c) 15 days
- Weighted Average Maturity Two (c) 106 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 46%
- Agencies 39%
- Treasuries 14%
- Money Market 1%
Total Assets
- Book Value 5,958,653,567.71
- Market Value 5,986,327,861.14
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 5.08%
- SEC 7-day Fund Yield (b) 5.03%
- Weighted Average Maturity One (c) 36 days
- Weighted Average Maturity Two (c) 79 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 88%
- Cash/Repo 9%
- Money Market 3%
Total Assets
- Book Value 3,163,458,321.13
- Market Value 3,164,200,950.58
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 5.08%
- SEC 7-day Fund Yield (b) 5.04%
- Weighted Average Maturity One (c) 42 days
- Weighted Average Maturity Two (c) 87 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 98%
- Money Market 1%
- Cash/Repo 1%
Total Assets
- Book Value 9,769,767,428.51
- Market Value 9,772,018,785.00
(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.