Institutional Sales in Fixed Income Asset Manager
Hey everyone,
This is my first time asking questions here on WSO, and thank you so much for reading through my post in advance.
I am going to have a phone pitch with a fixed income manager, and they ask me to prepare a firm pitch, including for the corporate investment-grade bonds(as one of their investment portfolios) for 20-30 minutes. I have got the company materials including a firm overview, bond introduction, track records and portfolio characteristics, etc.
The people I would pitch to would-be imaginary pension funds, sovereign funds, insurance companies, and other institutional clients.
I could not really find too many instructions on the pitch, and also wonder what structure should I follow during the phone pitch? For instance, what should I especially pay attention to? And any advice from your side for the preparation?
Thanks again for reading through my post :)
Hey yh_2020, what a lonely thread. I'm here since nobody responded ...so maybe one of these discussions will help:
Hope that helps.
Thanks! Have gone through 2 rounds of interview, and basically got some ideas of the job. Thank you for the help :)
sell me this pen
I would take the information given about the fund/strategy they want you to pitch (duration, credit risk profile, etc.) and pick an investor type to pitch to based off that information. A little breakdown of various investor types below.
Pensions and insurance are liability driven investors (they have payments that they need to payout at a given date and are looking to earn an excess return over what needs to paid out). Both of those types of investors tend to be focused on longer duration investments and in low rate low spread environment we have had over the last couple of years they have needed to take more credit and liquidity risk to meet those return hurdles. So if the strategy you are given has a duration of 7+yrs and a higher percentage of BBB rated bonds relative to the index than you should say its a good fit for a pension/insurance account. These guys tend to chase yield.
Endowments/Sovereign Wealth/Family Office- If the fund is more total return focused than it might be a better fit for one of these type of entities. They are not really driven by liabilities and tend to be more focused on generating returns and tend to have a wider mandate and are looking for "good ideas" than focusing on a very strict mandate.
Public funds accounts/Corporations- If you are looking at a high quality portfolio (A rated or better 5yrs and in) it might be a better fit for a more conservative entity like a public fund (Cities, Counties, School districts, water districts, etc.). These are more conservative and just trying to earn some excess income on excess cash they have on the balance sheet. Telling the tax payers you lost their money on risky investments is much worse for these people than not earning as much on the excess due to being too conservative.
The major goal of a salesperson in asset management (or anything for that matter) is understand the account and their needs and to show them products/ideas that fit. Nobody expects you understand the ins and outs of investors types but showing you made an effort instead of just highlighting how the strategy has performed relative to a benchmark is going to make you look good.
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