How a well-aimed snowball can make more than a dent

"There are a lot of financial services firms which talk about things without it being that interesting...  show a bit more of the humanity behind the brand... the time is ripe for brands with a bit of guts and soul..."

Matthew Heath, CMO Invesco.

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Impact investing is a wonderful idea. It wants to do more than make money for clients. It wants to invest in organisations solving our biggest social and environmental problems. Investments that will also generate returns. Who would object to that?

And it’s ambitious. Most impact investors want this approach to become mainstream because they’re convinced that current investment strategies are running out of time.

Many believe traditional investors have borrowed from the future, and the planetary bailiffs are on their way to kick in the doors and demand reparations.

When the pioneering investment manager, Snowball, launched in 2017, it brought its new, unproven impact investing strategy to established investors using familiar financial language. You can understand why. They had to build trust and convey safety.

Six years later, impact investing has grown, competition has increased, and everyone sounds the same. See for yourself. Here are some descriptions from competitor websites.

Image of a selection of ‘About us’ statements taken from the websites of impact investors.

Now, be honest - did you read all of them? Or did you skim and lose interest? Did one stay with you longer than the others? Are you energised by the ‘access to a diversified portfolio of private equity investments that seek to achieve compelling financial returns together with a demonstrable and measurable positive social and economic impact’? Thought not.

And that’s the problem. Focusing on trust and safety has led the sector into a noisy blizzard. It’s hard to raise the scale of money needed when everyone competing for attention sounds the same. Without a clear beacon, knowing which way to turn is impossible.

Snowball’s positioning, Invest Positive, could be said by any of its competitors. To reach its fund target, Snowball knew it was time for a rethink.

A good aim requires focus

A review of organic internet search terms helped me to understand how well-known Snowball is compared to its competition.

Whilst some know Snowball, many more don’t. Expanding market awareness is central to growth. But as the website descriptions prove, they need a more distinctive pitch.

Short, punchy interviews with the investors gave me a compelling list of why Snowball mattered and highlighted some confusion.

I heard about Snowball’s commitment to systemic change and its deep and thorough research. Many I spoke to liked Snowball’s distinctive multi-asset ‘all weathers’ investment strategy. Others told me they could see how deeply impact shapes Snowball’s culture.

Some couldn’t explain the difference between impact and environmental, social and governance investing (ESG). The terms lack clarity and were being used indiscriminately. The simplest way to solve the confusion is to stop using the labels.

Others I interviewed were more focused on solving problems. They wanted to fund solutions. But that meant many only invested 1-2% of what they had available. The rest of their investments were focused on ‘generating income’.

Snowball’s commitment to transparency and accountability really stood out. Perhaps unique among Impact Investors, Snowball wants others to measure the impact of their investments. That’s interesting. Fund managers usually review their performance. It’s bold and brave to ask someone else to mark it.

Having listened to the target audience, I wanted to hear more from the core Snowball team. I led a focused workshop that allowed them to discuss what motivated them. We explored many nuances together.

After a few hours of discussion, I could see three themes emerging. One, Snowball sincerely believed it represented the future of all investing. Two, their commitment to measuring the impact of their investments beyond returns was obvious to them. If you’re committed to reducing carbon, wouldn’t you want every investment in the fund to deliver it? Three, it aims to set standards for others to follow by publishing the weaknesses and strengths of its strategy.

I presented a summary of my findings to the Board and made a series of recommendations and outlined some simple next steps.

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Brilliant. This is really exciting. Looking forward to seeing how it will translate.

James Perry, Founder.

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Moulding the right shape

Working with a copywriter and Snowball’s Head of Marketing, I developed options for the new brand position. After a few rounds of feedback and redrafting, we settled on the brand essence – Investment with the future priced in.

This puts Snowball’s central conviction in the headline. Every investment has an impact. Some are positive, but many aren’t. Snowball’s approach is to measure what its investments will cost the future.

It’s also time to stop sounding optional and philanthropic. Snowball had to sound more universal to become mainstream. It was time to move out of the ethical silo and talk more generally and confidently about investing. As one of their investors put it:

“People have financial advisors who say, "Well, you need some real estate, and you need some stocks, you need some bonds, and you need some emerging market, and you need some small-cap and some large-cap,". So Snowball does basically that, but every single one of their investments is focused on impact.”

This is how the positioning sounds in sixty-five words:

Investment with the future priced in.

Setting the standards now for the markets of tomorrow.

Financial investments shape the world. The question is, what kind of world do we want? Snowball is a diversified fund proving there is a better way to invest – one that delivers competitive returns. Why? Because when you consider the future, common sense says this is the right way to invest.

Revisit the previous website descriptions. How does this compare? I say more compelling and memorable.

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It’s a clear, concise, compelling position and a powerful rallying call. I’m energised about the next phase.

Laura Boyle, Head of Marketing

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This project started with a simple review of Snowball’s brand. Drawing a line in the snow for what was already strong and what could be stronger. I summarised several exciting opportunities and worked with Snowball to develop and implement them.

Book a call if you’d like to discuss how adding 'more guts and soul' could help your brand and marketing.