What Is Ensign Peak Advisors and What Does It Do?

Ensign Peak Advisors is an investment management organization. It operates as an affiliate of The Church of Jesus Christ of Latter-day Saints. It manages substantial financial assets. Its operations support the Church’s broader objectives. This organization represents a significant aspect of the Church’s financial stewardship, handling investments on its behalf.

Foundation and Mission

Ensign Peak Advisors was established in September 1997 as a distinct legal entity. This creation spun off the existing investment division of The Church of Jesus Christ of Latter-day Saints. The organization was named after Ensign Peak, a prominent hill in Salt Lake City, symbolizing oversight and a long-term perspective.

The mission of Ensign Peak Advisors involves managing the Church’s financial reserves, aiming for long-term growth and capital preservation. These funds are intended to support the Church’s global operations, including its educational, humanitarian, and charitable activities. While a significant portion of Church donations is used for immediate needs, a segment is systematically set aside. This reserve building through wise financial management ensures prudent financial stewardship for the future. Ensign Peak plays an integral role in this process by investing reserve funds and assisting with cash management for both current operations and future requirements.

Operational Framework

Ensign Peak Advisors operates as a non-profit corporation, serving as a supporting organization and integrated auxiliary to The Church of Jesus Christ of Latter-day Saints. It is a separate legal and administrative entity from the Church. The Presiding Bishop of the Church holds oversight responsibility for Church finances, including Ensign Peak’s activities.

The organization maintains its own internal management structure, comprising leadership and dedicated investment teams. It employs a diverse group of professionals across various fields, including investment, finance, technology, compliance, and accounting. These teams are responsible for making and overseeing investment decisions within the entity. The operational framework aligns with the Church’s financial principles, such as budgeting, avoiding debt, and saving for future needs.

Investment Portfolio and Approach

Ensign Peak Advisors engages in investment activities across a broad spectrum of asset classes globally. Its portfolio typically includes public equities, fixed income instruments, and managed funds. The organization also invests in real estate and may include alternative investments. These investments are made directly and through external managers, reflecting a diversified approach.

The overarching investment philosophy emphasizes a long-term horizon and broad diversification. Ensign Peak strives to maintain a balanced portfolio to effectively manage investment risk. This strategy generally aims for capital preservation while generating consistent returns over time. Managed assets fund current Church operations and build reserves for future needs. It manages substantial funds, with reported assets exceeding one hundred billion dollars.

Regulatory Environment and Public Disclosures

As a significant institutional investment manager, Ensign Peak Advisors operates under the regulatory oversight of the U.S. Securities and Exchange Commission (SEC). Investment managers exceeding a specific threshold are required to file quarterly Form 13F reports with the SEC.

These 13F filings are designed to provide transparency into the equity holdings of large institutional investors. They publicly disclose the names of the securities held and their corresponding values. The requirement to file these forms allows the investing public and the SEC to gain insight into the equity investment portfolios of such entities. In recent years, Ensign Peak adjusted its reporting practices to file a single, aggregated Form 13F, aligning with SEC requirements for transparency of its public equity holdings.