Governance

A board of trustees looks after your Lone Star Investment Pool. All of the Board's 11 members are Pool participants, so their decisions affect not only your entity's investments, but their own as well.

Each quarter, Board members get together to review the Pool's operations, fine-tune investment policy, analyze audits, or approve contractor agreements. Pool members can rest assured that this dedicated Board—not a distant agency or corporation—is taking a careful and considered approach to every investment decision.

The Lone Star Board has also established an Advisory Board made up of participants from many forms of local government. The Advisory Board serves as a source of information, input, and feedback about members' needs and Lone Star's services.

Checks and balances to ensure performance

The Lone Star Investment Pool Board is devoted to running a pool with the superior level of safety and protection your investments deserve. So it works with many separate, independent partners, each of which helps us sharpen how the Pool operates and performs. The Board also seeks out a range of views and ideas from an advisory board of both Pool members and non-members.

An independent, third-party investment consultant—CAPTRUST Financial Advisors—reports directly to the Board of Trustees. This firm reviews the Pool's daily operations, makes sure investment transactions fit with the Pool's Investment Policy, monitors the custodian bank, and compares the investment advisor's performance with that of peer funds and other benchmarks.

Lone Star also counts on an independent, third-party bank, State Street Bank, for custody and valuation services. The bank settles all trades for the Pool, and secures and values its assets every day.

Two other firms, American Beacon Advisors and Mellon Investments Corporation, manage the investment and reinvestment of Lone Star's assets.

See the Providers section for a more detailed description of each of these firms.