Lone Star Investment Pool June 2026 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
June 30, 2026 — While the conflict in the Middle East continues to be a focus for financial markets, Federal Reserve (Fed) Chair Kevin Warsh’s first Federal Open Market Committee (FOMC) meeting received a lot of attention. The Fed left rates unchanged at 3.5% to 3.75% in a unanimous vote with a hawkish tilt. The statement was cut significantly shorter with little, if any, forward guidance and Chair Warsh reiterated that the Fed’s 2% inflation target will remain. The statement removed the easing bias that had drawn dissents at the previous meeting. Chair Warsh did not submit a forecast for the Summary of Economic Projections (SEP), but the median unemployment rate was revised lower for 2026, while inflation was revised higher. Notably, nine of the 18 participants penned a 2026 rate hike. Members now see the balance of risks as more clearly skewed toward higher inflation. Chair Warsh announced a wide-ranging reform agenda for the Fed consisting of five task forces: communications policy, balance sheet policy, improvements to the data sources the Fed uses, implications of artificial intelligence (AI) for productivity and jobs, and the Fed’s inflation framework. As of the end of June, the fed funds futures market was pricing one to two rate hikes by the end of 2026.
Lone Star Investment Pool Fund Performance
The following fund performance data is as of June 30, 2026.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 3.64%
- SEC 7-day Fund Yield (b) 3.65%
- Weighted Average Maturity One (c) 45 days
- Weighted Average Maturity Two (c) 105 days
- Portfolio Maturing beyond One Year 4%
- Net Asset Value (NAV) $1.00
- Annualized Expense Ratio 0.06%
- Standard & Poor’s Rating AAAm
Investment Distribution
- Agencies 55%
- Cash/Rep 26%
- Treasuries 18%
- Money Market 1%
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 3.78%
- SEC 7-day Fund Yield (b) 3.79%
- Weighted Average Maturity One (c) 49 days
- Weighted Average Maturity Two (c) 72 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 11%
- Money Market 2%
- Agencies 2%
- Treasuries 1%
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 3.82%
- SEC 7-day Fund Yield (b) 3.83%
- Weighted Average Maturity One (c) 62 days
- Weighted Average Maturity Two (c) 91 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%
(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.