Ensign Peak Advisors
| Company type | Non-profit organization |
|---|---|
| Industry | Investment management |
| Founded | 1997 |
| Headquarters | Salt Lake City , United States |
Key people | Roger Clarke (CEO), Gérald Caussé (Presiding Bishop, financial supervisor) |
| Products | Investment management services |
Number of employees | 70 (2020) |
Ensign Peak Advisors (EP) functions as the investment management entity responsible for overseeing the asset portfolio of The Church of Jesus Christ of Latter-day Saints (LDS Church). Founded in 1997 as an independent legal organization, its name derives from Ensign Peak, a landmark near Salt Lake City. EP administers the church’s vast investment holdings. As of February 2020, Roger Clarke holds the position of CEO, while Gérald Caussé, serving as the Presiding Bishop of the church, supervises the overall financial affairs of the church, including the activities of EP. The firm manages assets valued at roughly US$124 billion, underscoring its critical role in the church’s financial planning and international investment initiatives.
History
Confronted with financial difficulties during the 1960s, LDS Church leader N. Eldon Tanner began a practice of annually allocating funds to create a financial reserve. Ensign Peak (EP) was formally established as a non-profit organization on 29 September 1997 to manage a portion of these reserves. The investment division initially operated with a team of three employees and had grown to oversee $1 billion by the late 1970s. By 2020, EP’s workforce expanded to approximately 70 individuals, all required to maintain good standing within the LDS Church.
In 2019, the LDS Church clarified that the majority of donations are promptly utilized for growth efforts such as constructing meetinghouses and temples, supporting education, humanitarian aid, and missionary work, while a segment is cautiously preserved through deliberate financial management strategies.
Investments and revenue
By 2019, EP’s portfolio was reported to be worth $100 billion, encompassing $40 billion invested in U.S. equities, ownership of timberland in Florida, and positions in prominent hedge funds including Bridgewater Associates. Major equity holdings include shares in companies like Apple, Chevron, Visa, JPMorgan Chase, Home Depot, Amazon, and Google. Some investments with Fisher Investments were scaled back following controversial statements made by its founder Kenneth Fisher. In recent years, the fund has delivered an approximate annual return rate of 7%.
On November 16, 2020, EP submitted IRS Form 990-T for the year 2019, confirming its classification as a 501(c)(3) entity with $84 million reported in unrelated business income and $17 million paid in associated taxes.
Whistleblower complaint
In 2019, former senior portfolio manager David A. Nielsen filed a whistleblower complaint with the Internal Revenue Service (IRS), bringing national attention to the magnitude of EP’s investments.[1] Nielsen collaborated with his twin brother Lars in submitting the complaint; Lars later shared details with The Washington Post. David Nielsen opposed public disclosure, asserting that any release of information was unauthorized by him.[2] Experts expressed doubt regarding whether the IRS would take action based on the complaint.[3]
SEC Inquiry and Sanctions
On February 21, 2023, the U.S. Securities and Exchange Commission (SEC) announced charges against Ensign Peak (EP) and the LDS Church for neglecting to submit mandatory disclosures regarding the Church's equity holdings from 1997 through 2019. Instead of transparent reporting, they utilized shell LLCs across various states to conceal the investment portfolio and misrepresent Ensign Peak’s authority over investment decisions.
The SEC’s cease-and-desist directive highlighted concerns that revealing disclosures under Ensign Peak’s name might negatively impact the Church due to the portfolio’s substantial size. This strategy was implemented without authorization from the Church's First Presidency. During this timeframe, the portfolio expanded from $7 billion to approximately $37.8 billion. Gurbir S. Grewal, director of the SEC Enforcement Division, emphasized that the LDS Church’s investment manager intentionally evaded disclosure requirements, thereby withholding accurate information from the market.
The scheme entailed establishing shell LLCs that appeared to operate independently nationwide to obscure their affiliation with Ensign Peak and the Church. Individuals with common names and limited public profiles were appointed as managers of these entities despite having minimal understanding of their actual function; these managers falsely claimed exclusive control over investment decisions, while Ensign Peak retained full portfolio management.
As a result, the SEC levied fines amounting to $4 million on Ensign Peak and $1 million on the LDS Church. The Church stated it had cooperated extensively with the SEC over several years and had received legal advice supporting the use of third-party entities for filings. It reaffirmed its dedication to regulatory compliance and considered the issue resolved.
Litigation
In 2019, James Huntsman, sibling of former Utah Governor Jon Huntsman Jr., initiated a lawsuit demanding the return of $5 million he contributed prior to his departure from the church. The LDS Church moved to dismiss the case, which a U.S. District Court initially granted in September 2021. Huntsman appealed, and in August 2023, the 9th Circuit Court of Appeals reinstated the lawsuit. The Church was permitted an en banc review, with oral arguments conducted in September 2024. Ultimately, on January 31, 2025, the appeals court unanimously dismissed the suit, concluding there was no proof of fraudulent misrepresentation by the Church.
In October 2023, three members of the church filed a separate lawsuit in Utah’s United States District Court, alleging they collectively donated $350,000. Early in 2024, another suit seeking class-action status was filed in California. By August 2024, multiple lawsuits spanning five states were consolidated and certified as a class action. Plaintiffs requested reimbursement of tithing payments, a judicial declaration that the Church’s financial practices violated laws, suspension of tithing until financial oversight mechanisms were implemented, and establishment of a nationwide plaintiff class.
This consolidated litigation was dismissed with prejudice in April 2025 by a federal judge who ruled that plaintiffs had surpassed applicable statutes of limitations and failed to satisfy fraud claim requirements.
See also
- Finances of The Church of Jesus Christ of Latter-day Saints
- List of wealthiest religious organizations
External links
- ↑ Cite error: Invalid
<ref>tag; no text was provided for refs namedWaPost - ↑ Glader, Paul; Penrod, Emma. "LDS Church Members Discuss Tithes And Alleged $100 Billion Stockpile", Religion Unplugged, 20 December 2019.
- ↑ Reilly, Peter J. "$100 Billion In Mormon Till Does Not Merit IRS Attention", Forbes, 17 December 2019.
- Properties of the Church of Jesus Christ of Latter-day Saints
- Latter Day Saint practices
- Economy and Christianity
- Investment management companies of the United States
- Companies based in Utah
- American companies established in 1997
- Privately held companies based in Utah
- 1997 establishments in Utah
- Mormonism-related controversies
- Companies of the United States by year of establishment