Lone Star Investment Pool October 2025 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
October 31, 2025—US Treasury bond yields were slightly lower in October. Yields trended lower early in the month but reversed that trend following the Federal Open Market Committee (FOMC) meeting. Equity markets reached new all-time highs again in October as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes gained 2.5%, 2.6%, and 5.3%, respectively. As expected, the FOMC lowered rates by 25 basis points (bps) to 3.75% from 4.00% at the October 29 FOMC meeting. There were two dissenters on the committee, but on opposite sides. One dissent was in favor of a 50-bp cut. The other dissenter was in favor of no cut. Chair Jay Powell’s press conference was somewhat surprising. Several times during the press conference, he said that a rate cut in December was not a foregone conclusion. In one instance, he used the phrase “far from it.” This pushed yields higher and lowered expectations of a rate cut at the December 10 FOMC meeting. Prior to the meeting, the Fed funds futures market was pricing-in a 92% probability of a rate cut. At the end of October, that probability had fallen to 68%.
Lone Star Investment Pool Fund Performance
The following fund performance data is as of October 31, 2025.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.14%
- SEC 7-day Fund Yield (b) 4.14%
- Weighted Average Maturity One (c) 30 days
- Weighted Average Maturity Two (c) 106 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
- Agencies 47%
- Cash/Rep 34%
- Treasuries 17%
- Money Market 2%
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 4.26%
- SEC 7-day Fund Yield (b) 4.25%
- Weighted Average Maturity One (c) 44 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 79%
- Cash/Repo 19%
- Money Market 2%
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 4.28%
- SEC 7-day Fund Yield (b) 4.27%
- Weighted Average Maturity One (c) 51 days
- Weighted Average Maturity Two (c) 88 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.