Lone Star Investment Pool April 2025 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
April 30, 2025—Widespread tariffs continued to be the focus of the financial markets. On April 2, the Trump administration announced a 10% tariff on all countries (in effect April 5) and individualized reciprocal tariffs (in effect April 9), with some exemptions. A 25% tariff on all foreign auto and auto parts took effect earlier. A week later, the administration announced a 90-day pause on country-specific reciprocal tariffs but all prior tariffs, and the global baseline of 10% remained in place. The notable exception was China. After rounds of retaliation, the White House has announced that tariffs on China would be at least 145%. Yields on the front-end of the yield curve fell 28 basis points (bps) as the long end was higher by 11 bps. After falling sharply in March, the US equity markets were mixed in April as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes returned -3.1%, -0.7% and +1.6%, respectively. There was no Federal Open Market Committee (FOMC) meeting in April. Chair Jerome Powell at the Economic Club of Chicago stated tariff increases announced by the Trump administration were larger than expected and are likely to slow growth and raise inflation. In what was seen as a hawkish message by the market, he also noted “Keeping in mind that without price stability we cannot achieve the long periods of strong labor market conditions that benefit all Americans.” At the end of April, the fed funds futures market was pricing in 100 bps worth of cuts by the end of 2025
Lone Star Investment Pool Active Participants April 2025
- Schools and colleges: 600
- Other Governmental Entities: 94
- Total: 694
Fund Performance
The following fund performance data is as of April 30, 2025.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.33%
- SEC 7-day Fund Yield (b) 4.32%
- Weighted Average Maturity One (c) 27 days
- Weighted Average Maturity Two (c) 100 days
- Portfolio Maturing beyond One Year 7%
- Net Asset Value (NAV) $1.00
- Annualized Expense Ratio 0.06%
- Standard & Poor’s Rating AAAm
Investment Distribution
- Cash/Repo 47%
- Agencies 34%
- Treasuries 17%
- Money Market 2%
Total Assets
- Book Value 7,355,392,453.97
- Market Value 7,356,146,790.39
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 4.43%
- SEC 7-day Fund Yield (b) 4.43%
- Weighted Average Maturity One (c) 40 days
- Weighted Average Maturity Two (c) 63 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 89%
- Cash/Repo 8%
- Money Market 3%
Total Assets
- Book Value 4,217,233,940.84
- Market Value 4,216,918,141.94
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 4.47%
- SEC 7-day Fund Yield (b) 4.46%
- Weighted Average Maturity One (c) 47 days
- Weighted Average Maturity Two (c) 75 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 12,772,686,832.66
- Market Value 12,771,924,945.58
(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.