Lone Star Investment Pool January 2026 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
January 31, 2026—The US Treasury yields ticked modestly higher with no part of the curve moving more than eight points in January. The equity markets in the US started 2026 on a positive note as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes gained 1.7%, 1.4%, and 0.8%, respectively. The Federal Open Market Committee (FOMC) held rates at 3.5% to 3.75%, which was widely expected by market participants, but there were two dissents. A few notable editorial changes included describing the economy to expand at a “solid” pace from “moderate” and describing the unemployment rate as showing signs of stabilization. Statements on “downside risks to employment” and “shift in balance of risks” were removed. As of the end of January, the fed funds futures marking was implying two rate cuts of 25-basis point (bp) each by the year-end. Kevin Warsh, who previously was a Federal Reserve (Fed) governor from 2006 to 2011, has been nominated by President Trump to be the next Fed chair. Recent comments by Kevin Warsh included advocating for lower rates and shrinking the Fed’s balance sheet. On the last day of January, a partial government shutdown began. It is not expected to last long as the House will try to pass funding legislation quickly. Congress has already passed half of this year’s funding bills.
Lone Star Investment Pool Fund Performance
The following fund performance data is as of January 31, 2026.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 3.70%
- SEC 7-day Fund Yield (b) 3.68%
- Weighted Average Maturity One (c) 26 days
- Weighted Average Maturity Two (c) 98 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
- Agencies 45%
- Cash/Rep 39%
- Treasuries 14%
- Money Market 2%
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 3.85%
- SEC 7-day Fund Yield (b) 3.82%
- Weighted Average Maturity One (c) 50 days
- Weighted Average Maturity Two (c) 67 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 84%
- Cash/Repo 12%
- Money Market 4%
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 3.91%
- SEC 7-day Fund Yield (b) 3.87%
- Weighted Average Maturity One (c) 57 days
- Weighted Average Maturity Two (c) 80 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 2%
- Money Market 2%
(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.