Government Overnight Fund

Daily Liquidity

The objective of the Government Overnight Fund is to provide you with safety of principal, daily liquidity, and the highest possible rate of return. The fund seeks to maintain a net asset value of one dollar, and its dollar-weighted average maturity is 60 days or fewer.

Period Average Monthly Returns 7-Day SEC Yield Weighted Maturity (1) Weighted Maturity (2)
2017 May 0.73% 0.75% 24 86
  April 0.69% 0.71% 33 90
  March 0.59% 0.64% 37 93
  February 0.53% 0.53% 37 87
  January 0.52% 0.53% 38 78
2016 December 0.46% 0.48% 30 65

(1) This weighted average maturity calculation uses the industry standard definition of stated maturity for floating rate instruments, the number of days until the next reset date.

(2) This weighted average maturity calculation uses the final maturity of any floating rate instrument, as opined in Texas Attorney General Opinion No. JC3059.

Authorized Investments

Though the Pool may invest in all securities authorized under the Investment Act, it is the Board's policy that only the following of such authorized investments will be eligible as Government Overnight Fund investments:

  • Obligations of the United States or its agencies and instrumentalities
  • Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the United States or its agencies and instrumentalities
  • Fully collateralized repurchase agreements that meet the following criteria: (1) have a defined termination date; (2) are secured by obligations of the United States or its agencies and instrumentalities; (3) require the securities being purchased by the Government Overnight Fund to be pledged to the Government Overnight Fund, held in the Government Overnight Fund's name, and deposited at the time the investment is made with the Government Overnight Fund or with a third party selected and approved by the Government Overnight Fund; and (4) are placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state. The market value of repurchase agreement collateral is required to initially be 102 percent of the principal amount of such repurchase agreement. Thereafter, the market value of such collateral will be determined (marked-to-market) daily and reset to 102 percent of the principal amount if the market value of the collateral falls below 100 percent.
  • The Government Overnight Fund may lend up to 25 percent of its securities pursuant to a reverse repurchase agreement authorized under the Investment Act. Any funds obtained pursuant to a reverse repurchase agreement must be invested in authorized Government Overnight Fund investments and match the term of the reverse repurchase agreement. The term of any reverse repurchase agreement may not exceed 90 days.
  • No-load money market mutual funds regulated by the Securities and Exchange Commission (SEC) that invest exclusively in authorized Government Overnight Fund investments, provided the Government Overnight Fund shall not invest its funds in any one money market mutual fund in an amount that exceeds (i) 25 percent of the Government Overnight Fund's total assets or (ii) 10 percent of the total assets of such money market mutual fund.

Other Lone Star Funds

Corporate Overnight Fund

Corporate Overnight Plus Fund


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. For further information or for an Information Statement, contact First Public at 800.558.8875.