Lone Star Investment Pool August 2025 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
August 31, 2025—US Treasury bond yields moved lower in August on increasing expectations that the Federal Reserve (Fed) may cut the target rate by up to 50 basis points (bps) by the end of 2025. Yields fell as much as 34 bps, with the two-year note leading the move. Weaker jobs data to start the month moved yields sharply lower. Equity markets continued to move higher as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes gained 3.2%, 1.9%, and 1.6%, respectively. Fed Chair Jerome Powell’s remarks at the Jackson Hole Symposium were characterized by a measured and dovish tone, as he hinted at the possibility of a rate cut in September due to an evolving balance of risks. Powell indicated that changing risk dynamics may justify policy adjustments, prompting markets to price in a cut. He views monetary policy as currently restrictive and therefore expects the Fed to focus on normalizing rates rather than shifting toward an accommodative stance. The next Federal Open Market Committee (FOMC) meeting is September 17. At the end of August, the Fed funds futures market was pricing in nearly a 90% probability of a rate cut of 25 bps.
Lone Star Investment Pool Fund Performance
The following fund performance data is as of August 31, 2025.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.31%
- SEC 7-day Fund Yield (b) 4.31%
- Weighted Average Maturity One (c) 26 days
- Weighted Average Maturity Two (c) 92 days
- Portfolio Maturing beyond One Year 5%
- Net Asset Value (NAV) $1.00
- Annualized Expense Ratio 0.06%
- Standard & Poor’s Rating AAAm
Investment Distribution
- Cash/Repo 40%
- Agencies 37%
- Treasuries 21%
- Money Market 2%
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 4.42%
- SEC 7-day Fund Yield (b) 4.42%
- Weighted Average Maturity One (c) 44 days
- Weighted Average Maturity Two (c) 77 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 87%
- Cash/Repo 10%
- Money Market 2%
- Treasuries 1%
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 4.43%
- SEC 7-day Fund Yield (b) 4.44%
- Weighted Average Maturity One (c) 52 days
- Weighted Average Maturity Two (c) 92 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%
- Cash/Repo 2%
- Money Market 1%
(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.