Ensign Peak Advisors


Ensign Peak Advisors is the investment manager for assets of The Church of Jesus Christ of Latter-day Saints.
In 1997, the investment division of the LDS Church was spun off into a separate legal entity named after a hill that overlooks Salt Lake City, Ensign Peak. As of February 2020, Roger Clarke is EP's Chief Executive Officer. Gérald Caussé is the church's Presiding Bishop who oversees church finances, including EP.

History

After years of financial challenges, LDS Church leader N. Eldon Tanner established a practice in the 1960s of setting aside money from contributions each year for a rainy-day fund. EP was incorporated as a non-profit corporation on 29 September 1997. EP's holdings purportedly represents—in part—this rainy-day fund. United States Senator Mitt Romney was quoted as saying, "Happy that they've not only saved for a rainy day, but for a rainy decade." The investment division started with three employees and by the late 1970s reportedly managed $1billion. As of February 2020, EP employs about 70 people, and all employees must maintain good standing in the LDS Church.
In a 2019 press release, the LDS Church explained the use of donations by members, "The vast majority of these funds are used immediately to meet the needs of the growing Church including more meetinghouses, temples, education, humanitarian work and missionary efforts throughout the world. Over many years, a portion is methodically safeguarded through wise financial management and the building of a prudent reserve for the future."

Investments and revenue

As of 2019, EP's holdings purportedly total $100billion, including $40billion-worth of U.S. stock, timberland in the Florida panhandle, and investments in prominent hedge funds such as Bridgewater Associates. Individual shares of stock identified as part of the investment fund reportedly include Apple, Chevron, Visa, JPMorgan Chase, Home Depot, Amazon, and Google. Part of the investments were with Fisher Investments, but some money was pulled after controversial comments from founder Kenneth Fisher. Clarke reports that in recent years the fund has gained about 7% annually.
On November 13, 2019, EP filed a Form 990-T with the Internal Revenue Service for 2018 stating that it is a 501 organization, that it recognized $48,295,405 of unrelated business income in 2018, and that it paid $1,108,470 of unrelated business income tax on that income.

Whistleblower complaint

In 2019, the Washington Post reported a whistleblower complaint had been filed with the Internal Revenue Service by a former EP employee, David A. Nielsen, that brought national attention to the reported size of the investments. Nielsen was a senior portfolio manager and filed the complaint with his twin brother, Lars. Later reports indicated that Lars approached the Washington Post with the information, and that David was against releasing the information publicly. David released a statement stating “Any public disclosure of information that has been in my possession was unauthorized by me.” Peter J. Reilly of Forbes and author Sam Brunson doubt the IRS will take any action.