Fixed Income Account Manager - Retail Wholesale vs Institutional
Hi All,
As the title states, I'm trying to figure out which account manager path I would enjoy more - wholesaling to financial advisors or institutional (pensions). Some context, I hit it off with a wholesaler from a Tier 1 FI manager that runs a region who is happy to help me find a place on either the retail or institutional side of things (at his firm or a competitor) as well as make further introductions with his institutional colleagues. Puts me in an interesting position as I look to pivot from banking (credit) with an MBA and CFA.
I'm leaning towards Institutional as I consider the below comparison. Worth noting I am in the early years of building a family and the path to becoming a portfolio manager (including being a PM) seems to be an intense grind that would lead to missing out on a lot of the important things in life, the last thing I want is to chase money and prestige only for my wife/family to hate or leave me because I consistently work 80+ hours a week.
Retail Wholesaler:
-I enjoy servicing clients, but my experience is with mid to large corporates
-Advisors may or may not be sophisticated, this would work in my favor as I can become a trusted advisor for the product and brand
-No one really has both of my credentials on the retail wholesaling front (his words, not mine) and it is desirable to have as part of any wholesaling team
-Will need to spend 2-3 years in Inside Sales before moving into wholesaling
-Local territory, so no major travel but likely some wining and dining after hours and weekends (advisors also have families and taking clients out has changed post-pandemic). However, if I move cities or countries, my wholesale network will need to be rebuilt
-Shorter sales cycle but lower tickets than institutional
-Potentially limited to wholesaling or moving into management (not a bad thing given comp)
-Primarily individual performance supported by inside sales (unless bringing in product experts)
-I can't drink like a fish and my golf game is about as good as Happy Gilmore's but without the driver
Institutional:
-Continue servicing an institution/corporate with sophisticated management teams
-Longer sales cycle but larger tickets
-Not sure about territory but hours likely higher given sensitive relationships and the need to deliver best in class service. Less unpredictability but probably more "on" than retail.
-I like the emphasis on team wins (impressive account management colleagues) and collaboration with internal partners
-Possible to migrate to product if that's of interest
-Relocating is less challenging on the institutional side
Did I get anything wrong about the two streams and am I missing anything that I haven't considered?
Thanks,
Based on the most helpful WSO content, here's a detailed comparison of the two paths you're considering:
Retail Wholesaler:
Institutional:
Additional Considerations:
Conclusion:
Both paths have their pros and cons. Retail wholesaling might offer a better work-life balance and quicker client interactions, while institutional roles provide larger deals and a more collaborative environment. Your decision should align with your career aspirations, personal values, and family considerations.
If you need more specific advice or personal experiences, engaging with professionals in both fields through networking could provide additional insights.
Sources: What's happening during live deals?, Is this a physical commodity shop or was I mislead by management?, It’s 2 years, you got this, AM vs HF: The Business of Our Business, Investment Sales Vs. Debt/Equity Brokerage
I have a lot of friends in this line of work, and I think you are mostly correct. With your background and age (guessing late 20s/early 30s) you would fit better in institutional. There is a pretty good on ramp for recent MBA grads into institutional sales roles at major asset managers and you will see more people with a similar background. The institutional side is more like a traditional corporate job vs the retail side which is more like running your business inside the firm. A couple of other things I would think about on both sides
1. Unless you live where the firms retail or institutional sales desk is located you will need to move. Most firms might have a couple of separate offices of institutional sales people but the retail internal desk will most likely all be in one spot.
2. If you chose retail you will be on an inside sales desk with people who will most likely be younger than you and in very different life stages.
3. On the retail side there is no guarantee that you will be able to move to external in 2-3 years, you are in comp against all the other internal sales people every time a territory opens and I don't think firms look very kindly on turning down an opportunity to run a certain territory b/c you don't like the location. In institutional if you put your time in and do good work you will be able to advance yourself and generally won't have to move.
4. You are always "on" in retail you are doing 10-12 in person meetings/dinner/lunch/drinks a week, there is not a lot of just sit on calls where you do nothing but take notes or introduce somebody who is going to talk in depth about the product.
5. FAs are old they like to wined and dined, maybe this changes but you are selling to people in sales they like to be entertained.
Hopes this helps, really all depends on your personality which one you will like better. Retail is more salesy and institutional is more like a traditional corporate job where you happen to be in sales.
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