Lone Star Investment Pool September 2025 Performance Update
Comments by Mellon Investments Corp (Dreyfus), Investment Manager
September 30, 2025—US Treasury bond yields moved lower by as much as 22 basis points (bps) in September, with the exception of the 3-5-year area, which increased slightly, on expectations that the Federal Reserve (Fed) will continue to lower the target rate in the coming months. Equity markets reached new all-time highs again in September as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 indexes gained 3.2%, 1.9% and 5.6%, respectively. As expected, the Federal Open Market Committee (FOMC) lowered rates by 25 bp to 4.0-4.25%. There was only one dovish dissent for a larger cut – 50 bp from new governor Stephen Miran. Members believe the balance of risks has shifted and the upside risks to unemployment now loom larger than the upside risks to inflation. Chair Jerome Powell emphasized the Fed’s commitment to preventing temporary tariff-driven price increases from becoming entrenched, noting current inflation expectations remain anchored, but warned that stronger inflation or positive labor market developments could shift focus back to inflation risks. Second quarter GDP was revised upward due to stronger-than-expected consumer spending. August US consumer spending exceeded expectations, with a 0.4% rise and upward revisions to prior months, driven mainly by discretionary goods spending recovery. The next FOMC meeting is scheduled for October 29. At the end of September, the market was fully pricing in a rate cut of 25 bps at the meeting.
Lone Star Investment Pool Fund Performance
The following fund performance data is as of September 31, 2025.
Government Overnight Fund
Return Information
- Average Monthly Return (a) 4.25%
- SEC 7-day Fund Yield (b) 4.15%
- Weighted Average Maturity One (c) 23 days
- Weighted Average Maturity Two (c) 92 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 44%
- Cash/Repo 38%
- Treasuries 14%
- Money Market 4%
Corporate Overnight Fund
Return Information
- Average Monthly Return (a) 4.37%
- SEC 7-day Fund Yield (b) 4.282%
- Weighted Average Maturity One (c) 40 days
- Weighted Average Maturity Two (c) 73 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 88%
- Cash/Repo 8%
- Money Market 4%
Corporate Overnight Plus Fund
Return Information
- Average Monthly Return (a) 4.39%
- SEC 7-day Fund Yield (b) 4.31%
- Weighted Average Maturity One (c) 46 days
- Weighted Average Maturity Two (c) 85 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 99%
- 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.