Lone Star Investment Pool February 2024 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
February 29, 2024—US Treasury bond yields rose in February, led by the two- to five-year areas of the curve. Equity markets moved higher in February as the Dow Jones Industrial Average, S&P 500 and Nasdaq-100 indices hit all-time highs. The S&P 500 gained over 5% during the month. Yields started moving higher in early February following the release of a very strong January jobs report. Yields received another boost later in the month on stronger-than-expected inflation data. Both the consumer and producer price indices surprised to the upside. The Fed funds futures market made significant adjustments during February. At the end of January, the market was pricing in six cuts of 25 basis points in 2024. At the end of February, expectations changed to just three cuts during the year, which is much more consistent with the Fed’s latest dot plot that was released in December.
Lone Star Investment Pool Active Participants February 2024
- Schools and colleges: 590
- Other Governmental Entities: 89
- Total: 679
Fund Performance
The following fund performance data is as of February 29, 2024.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 5.33%
- SEC 7-day Fund Yield (b) 5.34%
- Weighted Average Maturity One (c) 31 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
- Agencies 43%
- Cash/Repo 34%
- Treasuries 21%
- Money Market 2%
Total Assets
- Book Value 6,951,461,094.66
- Market Value 6,951,531,640.66
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 5.50%
- SEC 7-day Fund Yield (b) 5.51%
- Weighted Average Maturity One (c) 52 days
- Weighted Average Maturity Two (c) 78 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 90%
- Cash/Repo 7%
- Money Market 3%
Total Assets
- Book Value 4,046,661,167.80
- Market Value 4,046,579,635.05
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 5.52%
- SEC 7-day Fund Yield (b) 5.52%
- Weighted Average Maturity One (c) 58 days
- Weighted Average Maturity Two (c) 84 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 93%
- Money Market 6%
- Cash/Repo 1%
Total Assets
- Book Value 13,839,961,934.94
- Market Value 13,839,783,333.75
(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.