Breaking News
More () »

Millennials matching values to investments

It's socially conscious investing. And it's not new, but it's growing fast.

ST. PAUL, Minn. - Many millennials are now matching their values to their investments.

"I think within the next five years it'll be the norm," said Jonathan Kvasnik, a Financial Advisor at Bank Cherokee in St. Paul. "It'll just be the way everybody is investing and looking at their portfolios."

Portfolios with a purpose.

"They want their money to stand for something and not go somewhere that they don't stand for," said Kvasnik.

It's sustainable, socially conscious investing. And it's not new, although Morningstar - a mutual fund researcher - reports assets have grown more than 600 percent over the past decade.

"What's changed is that the companies that are doing business are finding that because they're being a little more efficient and being a little better culturally, that they're more profitable, potentially," said Kvasnik.

So, five years ago, Bank Cherokee started focusing in on one kind of socially conscious investing called ESG.

"ESG is kind of a three-prong: it's Environmental, Social and Governance, and integrating that into your investments that you choose to use in your portfolios," said Kvasnik.

At first, Kvasnik says, not even 1 percent were buying in. Now, about one-third of investment money is going into an ESG portfolio.

Kvasnik explains it through a brochure, but he likes to walk the walk for his bank's own cause, on the roof.

"All right, so we're going to go and see what the bees are doing," said Kvasnik, opening up a bee hive.

A bee hive for Bank Cherokee.

"That's right, we are the bee bank," laughs Kvasnik. "It's a great hobby, but it's also really important for the environment."

A bank taking a stand.

"Something will open that door that will make you realize that the environment is important. Then, it'll take you to the next step which will say - taking care of others is important in the social aspect. And, then doing business with people who are ethical and moral is important," said Kvasnik.

He adds that once he tells people what an ESG is, about 90 percent want to go in that direction with their investments.

Before You Leave, Check This Out