Cotati City Council
May 9, 2023

City of Cotati
Cost Comparison for Active Management
Summary of Estimated Returns on Investments $ %
Engage with Optum Investment Partners $ 3.724% 558,550Self Managed Investments $ 3.199% 479,850 Difference 78,700 $ 0.525%Engage with Optum Investment Partners Self Managed Investments Total Assets Under Active Management $10.00 Million Total Assets Under Active Management $5.00 MillionAverage Rate in Managed Funds 4.355% - As of February 2023 Average Rate in Market 4.355% - As of February 2023Average Rate of Return on LAIF 2.831% - As of March 2023 Average Rate of Return on LAIF 2.831% - As of March 2023Expenses ExpensesActive Management Investment Partnership Staff Investments Management Optum Management Fees Rate 0.0012 Staff Time Per Year 108 = One Day Per Month Annual Optum Management Fees $ - Billed Monthly Pro-Rata Cost at Average Rate 16,634 12,000 $ = Used Cost of Staff Services per our Fee Schedule Investment Management Third-Party Investment Management Third-Party Bank Fees Annual 2,000 $ Bank Fees + Investment Management Fees Annual 12,000 $ LAIF 4,500 LAIF 9,000 $
Broker Fees N/A Broker Fees N/A Total Expenses - Estimated 18,500 Total Expenses - Estimated 21,000 Estimated Returns Based on Assumptions $ 577,050 Estimated Returns Based on Assumptions $ 500,850 * Assumes $10M in Investments Earning Average Market Returns and $5M in LAIF Earning Returns * Assumes $5M in Managed Investments earning Average Market Returns and $10M in LAIF Earning LAIF Returns Net Investment Income Estimate $ 558,550 Net Investment Income Estimate $ 479,850 Return on Investments ($15M) 3.72% Return on Investments ($15M) 3.20% - Commission based compensation based on assets purchased - $5M Managed CD Purchases through RBC or Like Fund @ 0.2% of assets under management. - Based on $10M remaining in LAIF or like liquid pooled funds - Commission based compensation based on assets purchased - Based on $5M remaining in LAIF or like liquid pooled funds