Corporate Overnight Fund

Daily Liquidity

The objective of the Corporate Overnight Fund is to provide you with safety of principal, daily liquidity, and the highest possible rate of return. This 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)
2021 October 0.05% 0.06% 457 63
September 0.05% 0.05% 55 62
August 0.06% 0.06% 52 60
July 0.08% 0.08% 48 58
June 0.08% 0.08% 50 61
May 0.08% 0.08% 56 68

(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

The Corporate Overnight Fund may invest in all securities authorized under the Investment Act. However, it is the Board's policy to have the following additional restrictions:

  • Except for money market mutual funds regulated by the SEC, the Corporate Overnight Fund shall not invest its assets in the securities of any one nongovernmental issuer in an amount that exceeds 5 percent of the Corporate Overnight Fund’s total assets at cost.
  • 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 Corporate Overnight Fund to be pledged to the Corporate Overnight Fund, held in the Corporate Overnight Fund’s name, and deposited at the time the investment is made with the Corporate Overnight Fund or with a third party selected and approved by the Corporate 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 it falls below 100 percent.
  • If an A-1 or P-1 investment is placed on the watch list with negative implications by Standard & Poor’s or Moody’s Investor Services, the Investment Advisor must notify the Investment Consultant and Administrator that same day and if a ready market exists for that security, sell the investment within one week.
  • The Corporate Overnight Fund shall not invest its funds in any one money market mutual fund in an amount that exceeds (i) 25 percent of the Corporate Overnight Fund’s total assets or (ii) 10 percent of the total assets of such money market mutual fund.

Other Lone Star Funds

Government 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 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.