Lone Star Investment Pool February 2026 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
February 28, 2026—The US Treasury yield curve flattened significantly in the month of February as yields fell as much as 31 basis points (bps) on the long end of the curve. The equity markets were flat to lower during the month as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes returned +0.2%, -0.9%, and -3.4%, respectively. There was no Federal Open Market Committee (FOMC) meeting in February. Federal Reserve (Fed) minutes from the January meeting showed that members remain split between downside risks to employment and requiring more evidence of disinflation. What was notable was that several officials would have favored a balanced description of future policy decisions, increasing hawkishness relative to recent prior meetings. At the end of February, the US and Israel launched attacks on Iranian military targets as well as Iran’s political leadership with President Trump calling for regime change. Iran has retaliated with strikes on targets in the Gulf States and Israel. This significantly increases uncertainty going forward. A drawn-out conflict could weigh on global markets. It also adds to uncertainty of the global energy markets.
Lone Star Investment Pool Fund Performance
The following fund performance data is as of February 28, 2026.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 3.67%
- SEC 7-day Fund Yield (b) 3.68%
- Weighted Average Maturity One (c) 25 days
- Weighted Average Maturity Two (c) 99 days
- Portfolio Maturing beyond One Year 6%
- Net Asset Value (NAV) $1.00
- Annualized Expense Ratio 0.06%
- Standard & Poor’s Rating AAAm
Investment Distribution
- Agencies 48%
- Cash/Rep 33%
- Treasuries 18%
- Money Market 1%
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 3.80%
- SEC 7-day Fund Yield (b) 3.80%
- Weighted Average Maturity One (c) 50 days
- Weighted Average Maturity Two (c) 81 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 82%
- Cash/Repo 17%
- Money Market 1%
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 3.83%
- SEC 7-day Fund Yield (b) 3.82%
- Weighted Average Maturity One (c) 58 days
- Weighted Average Maturity Two (c) 93 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 92%
- Cash/Repo 7%
- 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.