Lone Star Investment Pool May 2025 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
May 31, 2025—Widespread tariffs continued to be the focus of the financial markets in the month of May. Expectations on trade deals being reached and expectations that more may come pushed the equity markets higher as Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes gained 6.3%, 4.2% and 9.7%, respectively. In April, non-farm payrolls rose by a stronger-than-expected 177,000. Despite a combined downward revision of 58,000 for the previous two months, the three-month average remains healthy at 155,000. US Core Consumer Price Index (CPI) rose by 0.24% month-over-month in April, with the annual core inflation rate unchanged at 2.8%. Some tariff effects were noted in recreation commodities prices, but the overall impact was muted. Core goods prices edged up by 0.1%, with declines in apparel and used vehicle prices. At the May 7 Federal Open Market Committee (FOMC) meeting, the committee voted unanimously to leave the fed funds target range unchanged at 4.25% and 4.50%. Federal Reserve (Fed) Chair Jerome Powell emphasized that the Fed can be patient given the hard economic data remains robust but noted that the uncertainty about the economic outlook has increased further. The next FOMC meeting is scheduled for June 18.
Lone Star Investment Pool Fund Performance
The following fund performance data is as of May 31, 2025.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.30%
- SEC 7-day Fund Yield (b) 4.31%
- Weighted Average Maturity One (c) 30 days
- Weighted Average Maturity Two (c) 101 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
- Cash/Repo 45%
- Agencies 32%
- Treasuries 21%
- Money Market 2%
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 4.42%
- SEC 7-day Fund Yield (b) 4.42%
- Weighted Average Maturity One (c) 40 days
- Weighted Average Maturity Two (c) 66 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 14%
- Money Market 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) 48 days
- Weighted Average Maturity Two (c) 79 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 3%
- 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.