Lone Star Investment Pool July 2025 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
July 31, 2025—US Treasury yields moved higher in July as market priced a higher probability of just one rate cut of 25 basis points (bps) by year-end. At the start of July, market pricing was reflecting two to three rate cuts by the end of 2025. Before trading modestly lower at the end of the month, the US equity markets reached all-time highs in July, as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes gained 0.8%, 2.2% and 3.7%, respectively. As expected, the Federal Open Market Committee (FOMC) left the target rate unchanged at the July 30 meeting. One of the most noteworthy things that came out of the meeting was that there were two dissenters in favor of a rate cut. It was the first time that there were two dissenters at a meeting since 1993, indicating that there are some disagreements within the committee. The inflation data has continued to show a trend toward the Federal Reserve’s (Fed’s) 2% target. The payroll data for July was much weaker than expected, largely due to significant downward revisions of the prior releases. There is no FOMC meeting scheduled for August. The next meeting will be on September 17.
Lone Star Investment Pool Fund Performance
The following fund performance data is as of July 31, 2025.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.31%
- SEC 7-day Fund Yield (b) 4.32%
- Weighted Average Maturity One (c) 26 days
- Weighted Average Maturity Two (c) 102 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
- Cash/Repo 35%
- Agencies 35%
- Treasuries 29%
- Money Market 1%
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 4.42%
- SEC 7-day Fund Yield (b) 4.42%
- Weighted Average Maturity One (c) 39 days
- Weighted Average Maturity Two (c) 74 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 78%
- Cash/Repo 17%
- Money Market 3%
- Treasuries 2%
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 4.44%
- SEC 7-day Fund Yield (b) 4.44%
- Weighted Average Maturity One (c) 43 days
- Weighted Average Maturity Two (c) 82 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%
- Cash/Repo 6%
- 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.