Sales – Job description
This article written by Akshit Gupta (ESSEC Business School, Master in Management, 2019-2022) presents the job description of a Sales analyst.
Sales analysts are sell-side analysts that develop and pitch ideas to sell financial securities to the firm’s clients and build relationships with them. They are responsible for analyzing and monitoring market activities to develop trade ideas to suit the client’s needs. The job of a sales analyst involves looking for potential assets to invest in and making PowerPoint presentations to pitch ideas to already existing and new clients. These finance professionals are employed by financial institutions like investment banks, asset management firms, hedge funds and stock brokerage firms.
The sales and trading team forms the backbone of any investment bank or asset management firm. The job of a sales analyst and a trader goes alongside, as the sales analyst conveys ideas and opportunities to the firm’s clients and the trader executes trades as per the client’s demands.
Types of Sales Analyst
A financial institution like an investment bank asset management firm or a stock brokerage firm has different departments which can be product specific or client specific. As an institution deals in different types of financial securities, with different types of clients across different geographies, a sales analyst can be divided into different categories:
Product-specific sales analyst
As a financial institution deals in many financial product categories, a sales analyst cannot keep a track of all the securities. So, the analysts are divided amongst different types of financial securities which include,
The role of a sales analyst working in the equities division is to develop and pitch ideas about equity investments to the firm’s clients. The type of investments in equities can take several forms like investments in options, futures, structured products, emerging market equities or value/ growth investment equities.
- Fixed Income
The role of a sales analyst working in the fixed income division is to develop and pitch ideas about fixed income investments to the firm’s clients. The type of fixed income investment includes investment in government or municipal bonds, investments in treasury bonds or mortgage-backed securities.
- Foreign exchange
The role of a sales analyst working in the foreign exchange division is to develop and pitch ideas about investments in foreign exchanges to the firm’s clients.
The role of a sales analyst working in the commodities division is to develop and pitch ideas about investments in different commodities (like gold, silver, or crude) and their futures to the firm’s clients.
Client-specific sales analyst
As a financial institution deals with different types of clients, a sales analyst can be categorized as per the clients they serve, which includes,
- Institutional clients like sovereign funds, government agencies, pension, or insurance companies
- Retail investors
- High net worth individuals (Private banking)
Duties of a Sales Analyst
As the sales and trading analysts is the lifeblood of an investment bank or an asset management firm, the sales analyst working must undertake a wide range of duties which includes,
- Monitoring and analyzing the financial markets to develop trading ideas
- Understanding the clients’ needs and developing solutions as per their expectations
- Effectively communicate with the traders, portfolio managers, equity researchers and sector specialists to stay updated with the current market information
- Build strong relationship with the clients
- Researching and analyzing fundamental and technical information about different financial securities
Whom does a Sales Analyst work with?
- Traders – A sales analyst primarily works with the traders on the floor to execute trades as per the client’s demand and suggest entry/exit positions
- Retail or institutional clients of the firm- A sales analyst works with the retail or institutional clients of the firm to understand their needs and develop trade ideas.
- Portfolio managers – The sales analyst works with the portfolio managers to stay updated with the current market information
- Economists and Sector specialists – A sales analyst works with the economists and sector specialists to get insights about different sectors and formulate investment strategies
- Legal Compliance – A sales analyst also works with the legal compliance team of the firm to maintain a proper check over different rules and regulations and prevent legal challenges
- Equity researchers – A sales analyst also works with the equity researchers to obtain insights about financial and non-financial data about different companies
How much does a Sales Analyst earn?
The remuneration of a sales analyst depends on the type of role and organization he/she is working in. As of the writing of this article, an entry level sales analyst working in a financial institution earns a salary between €45,000-€55,000/year (Source: Glassdoor). The analyst also avails bonuses based on his/her performance and other monetary/non-monetary benefits depending on the firm he/she works at.
What training do you need to become a Sales Analyst?
An individual working as a sales analyst is expected to have a strong base in market finance. He/she must possess strong knowledge of different types of financial instruments and their dynamics and should also be able to understand the market and economic trends. Besides having a strong academic knowledge, a sales analyst is also expected to have strong research and interpersonal skills to effectively communicate with the clients and build relationships.
In France, a Grand Ecole diploma from a Business School with a specialization in market finance is highly recommended to get an entry level sales analyst position in a reputed investment bank or investment firm.
The Chartered Financial Analyst (CFA) certification provides a candidate with an edge over the other applicants while hunting for a job as a sales analyst.
Also, to gain industry experience as a sales analyst, students are advised to work as interns and apprentices before stepping into this domain as full-time employees.
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Relevance to the SimTrade course
The concepts about the work of a sales analyst can be learnt in the SimTrade Certificate:
- By taking the Exchange orders course, you will know more about the different type of orders that you can use to buy and sell assets in financial markets.
- By taking the Market information course, you will understand how information is incorporated into market prices and the associated concept of market efficiency.
- By launching the Sending an Order simulation, you will practice how financial markets really work and how to act in the market by sending orders.
- By launching the Efficient market simulation, you will practice how information is incorporated into market prices through the trading of market participants and grasp the concept of market efficiency.
About the author
Article written by Akshit Gupta (ESSEC Business School, Master in Management, 2019-2022).