Lone Star Investment Pool July 2024 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
July 31, 2024—After falling modestly in June, US Treasury yields fell sharply in July. Yields fell as much as 45 basis points during the month with the two- to five-year area leading the decline. The US equity markets were mixed with the Dow Jones Industrial Average and Nasdaq-100 indexes advancing 4.4% and 1.2%, respectively, while the S&P 500 declined 0.8%. The labor market continued to show resiliency, albeit not as strong as in the first quarter. In the first half of 2024, an average of 222,000 jobs were added per month. The unemployment rate ticked higher to 4.1% for the highest reading since November 2021. Inflation indicators continued to trend modestly lower as the consumer price index fell to 3.0%. At the Federal Open Market Committee (FOMC) meeting on the last day of the month, the committee left the target rate unchanged. In the press release and in his comments at the press conference, Chair Jerome Powell left the door open for a possible rate cut at the next FOMC meeting on September 18. At the end of July, the federal funds futures market was fully pricing in a 25-basis-point rate cut at the September meeting.
Lone Star Investment Pool Active Participants July 2024
- Schools and colleges: 596
- Other Governmental Entities: 88
- Total: 684
Fund Performance
The following fund performance data is as of July 31, 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) 30 days
- Weighted Average Maturity Two (c) 97 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 44%
- Cash/Repo 31%
- Treasuries 23%
- Money Market 2%
Total Assets
- Book Value 6,258,338,332.77
- Market Value 6,258,660,288.45
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 5.44%
- SEC 7-day Fund Yield (b) 5.45%
- Weighted Average Maturity One (c) 43 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 87%
- Cash/Repo 11%
- Money Market 2%
Total Assets
- Book Value 3,568,792,519.27
- Market Value 3,568,818,779.71
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 5.44%
- SEC 7-day Fund Yield (b) 5.45%
- Weighted Average Maturity One (c) 48 days
- Weighted Average Maturity Two (c) 89 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 95%
- Cash/Repo 4%
- Money Market 1%
Total Assets
- Book Value 10,492,370,830.17
- Market Value 10,492,364,027.13
(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.