The Church of Jesus Christ of Latter-day Saints' has a $100 billion portfolio, according to a 13F filing. When the Great Recession hit, however, officials said the church trimmed the budget rather than tap its reserves.". Penske Automotive Group, for example, released its quarterly earnings on Nov. 21, 2020, andnoted in its press release that, among institutional and hedge fund investors, Ensign Peak Advisors increased its stake in Penske by 2,651% and now owns 181,578 shares of Penskes stock, valued at $7 million. Asia Pacific +65 6212 1000. A post shared by Scottie Scheffler (@scottie.scheffler). In contrast, a long-only portfolio of individual securities, using the same risk model and return forecasts, captures most (e.g., 80%) of the potential improvement. View Roger G Clark's profile for company associations, background information, and partnerships. A federal judge recently tossed out the lawsuit, but Huntsmans lawyers plan to appeal. We can prove that over and over again whether it's looking at DNA and the Book of Mormon, the Book of Abraham, or how Joseph Smith retrofitted the priesthood restoration or First Vision to establish authority. There are families that are struggling and continue to pay tithing because they were taught that the church needs it more than they do (and that the prosperity gospel will reward them with blessings to make up for it), and yet church leaders have been lying to every one of these families about the church's own means. From 1995-2020 he served as president of Ensign Peak Advisors, Inc., an investment management affiliate of The Church of Jesus Christ of Latter-day Saints. Cookie Settings. The Ensign Peak Advisors management team includes Anthony Kirkham (Vice President and Senior Portfolio Manager), Jason Butterfield (Chief Compliance Officer), and Roger Clarke (President). David A. Nielsen, a former employee at EPA, says in the filing that the new memorandum contains more information than the document he submitted to the IRS Whistleblower Office in November of 2019 that was a placeholder submission and was given to ReligionUnplugged.com and other outlets by Nielsens twin brother, Lars Nielsen, in the fall of 2019. Huntsman, who owns the film distribution company Blue Fox Entertainment, is the son of the late billionaire Jon Huntsman Sr. and brother of former Utah governor and U.S. Presidential candidate Jon Huntsman Jr. Mr. When we shut down critical thinking, it allows those who claim authority from God to abuse that trust over and over again, which we have seen from the days of Joseph Smith promising exaltation to marry the young daughters of early members through today with finances, interviews with children, or shutting down questions about church history. Suggested Citation, 60 East South Temple4th FloorSalt Lake City, UT 84111United States, 555 West 5th Street50th FloorLos Angeles, CA 90013United States213-688-3015 (Phone)213-688-8856 (Fax), 616 TNRBBrigham Young UniversityProvo, UT 84602United States801-378-6065 (Phone)801-378-5984 (Fax), Mutual Funds, Hedge Funds, & Investment Industry eJournal, Subscribe to this fee journal for more curated articles on this topic, Capital Markets: Market Efficiency eJournal, Econometric Modeling: Capital Markets - Portfolio Theory eJournal, We use cookies to help provide and enhance our service and tailor content. And the funny part about the quote is that many church leaders thought they knew when Jesus was coming back, but they just happened to be wrong. Former employees said the fund mushroomed from about $40 billion in 2012 to around $100 billion by 2019. Back to the article: "The funds handlers are instructed not to invest in industries that Latter-day Saints consider objectionable including alcohol, caffeinated beverages, tobacco and gambling, he said, alluding in part to the churchs health code known as the Word of Wisdom, which bars those substances (although caffeinated sodas are not part of that prohibition). We take seriously the responsibility to care for the tithes and donations received from members, the church statement said. Whether it's hiding church history, changing what the meaning of translation or 'curse of dark skin' is, or hiding finances in over a dozen shell companies, the leaders of this church simply do not believe that members will stick around if they are honest about their history or practices. In the same late 2020 window, Ensign Peak bought shares in index funds targeting Saudi Arabia and India, to the tune of $3.3 million and $12.6 million, respectively. Neilsen's complaint claims Ensign president Roger Clarke has said the fund would be used should the second coming of Christ occur, while the Post reported that high-ranking cleric Bishop. The complaint alleged thatEPA, a nonprofit registered as a 501(c)3 and a 509(a)3 supporting organization, did not make charitable distributions but that it did send $2 billion to help two for-profit companies. It shows up increasingly in reports and press releases from those publicly traded companies. The church along with our investment manager, Ensign Peak Advisors, have only recently been made aware of allegations brought forward by a former Ensign Peak employee, said Doug Andersen, a church spokesman. Clarke did not respond to an email . A recent Tribune/Suffolk University poll revealed that while a majority of Utahns, from across the religious spectrum, support the idea of requiring tax-exempt religious organizations to publicly report their finances, barely a third of very active Latter-day Saints do. Paying tithing demonstrates obedience and love and helps strengthen our faith in God.". Religion Unplugged56 BroadwayNew York, NY 10004, Religion Unplugged is a production of The Media Project and a member of the Institute for Nonprofit NewsEIN: 83-0461425site design by Peter Freeby, Its initial filing revealed EPA had $38 billion in stocks and mutual funds, Jillian Cheney, The Banshees of Inisherin, Ireland, Catholic, forgiveness, Irish Civil War, Irish Catholics, Irish conflict, Oscars 2023, Oscars, Academy Awards, movies, movie review, Inisherin, Colm Doherty, Martin McDonagh, Pdraic, Siobhn, Analysis, Atheism, Catholicism, Christianity, North America, Opinion, Politics, Religion, Society, Clemente Lisi, opinion, church vandalism, Catholic church, journalism, objectivity, bias, media bias, abortion, LGBTQ rights, politics, recharge, Recharge, would rank among the top five hedge funds, received awards from Religion News Association, Society for Advancing Business Editing and Writing, an EPPY Award for best business reporting from Editor & Publisher, included among the top 25 religion stories of 2020, filed a federal lawsuit against the church, published a statement to its members and constituents worldwide and posted three short videos to YouTube, used immediately to meet the needs of the growing Church, Church of Jesus Christ of Latter-Day Saints. See all articles by Roger G Clarke Roger G Clarke. The LDS welfare fact sheet from 2009 shows in the years 1985 through 2009 (24 years), the church donated just $327.6 in cash donations but they also count $884.6 million in donations of "material assistance." Given the popularity of factor investing, also known as rules-based, smart beta, or simply quantitative portfolio management, a number of students and traditional equity analysts have asked for a primer to introduce basic terms, concepts, and calculation procedures. It has significantly upped those holdings since. 212.744.6825, Research Coordinator Doctor Thorleys publications have been presented at academic and professional seminars around the world. BYU Marriott School of Business. According to lead counsel for Mr. Nielsen, Michael A. Sullivan of Finch McCranie, LLP, the team representing Mr. Nielsen includes a former senior official of the SEC, more than one former federal criminal prosecutor, a former IRS Criminal Investigative Division agent, another former IRS official, and an international tax lawyer, all with decades of experience. such as LGBTQ, African American and womens rights groups. For at least 22 years, EPA and certain senior executives have perpetrated an unlawful scheme that relies on willfully and materially false statements to the IRS and the SEC, so this for-profit, securities investment business that unfairly competes with large hedge funds can masquerade as a tax-exempt, charitable organization, the memorandum says. EPA did not need cash from its investments to pay tax, private equity funds could rely upon EPA to leave their investments intact for the long term, the document said. The church responded that Nielsens assertions amounted to hearsay and supplied its own sworn statement from Clarke, who was president and managing director over Ensign Peak from its 1997 founding until he retired in May 2020. Ensign Peak Advisors ( email) 60 East South Temple 4th Floor Salt Lake City, UT 84111 United States. Before that, the reserves were managed by the churchs Investment Securities Department, a top church financial official disclosed. Back to the article: Debates about Mormon finances and the question of transparency have persisted for decades but were triggered again in December by a whistleblower complaint filed by David Nielsen, a former portfolio manager with Ensign Peak, and reported by The Washington Post. Isnt amassing wealth and then saving it the equivalent of burying talents, that Christ condemned in the biblical parable? Miner asked. So they never wanted to be in a position where . He has served as a member of the editorial boards of the Journal of Portfolio Management and the Financial Analysts Journal. We include specific empirical results that can be replicated as an exercise in data collection, programming, reporting, and analysis. Beyond tech, Ensign Peaks top holdings read like a typical blue chip roster: J.P. Morgan, Merck, Berkshire Hathaway and Intel. We can also intentionally deceive others by a gesture or a look, by silence, or by telling only part of the truth. Nielsen notes that EPA was operated by people with similarly impressive backgrounds in finance, including advanced degrees from institutions such as Stanford University and experience at hedge fund and Wall Street firms such as Credit Suisse and UBS. Roger Clarke, head of Ensign Peak (Wall Street Journal): "So they never wanted to be in a position where people felt like, you know, they shouldn't make a contribution". While on academic leaves from BYU, Professor Thorley served as the interim Research Director for Analytic Investors, a quant fund based in Los Angeles, and for Ensign Peak Advisors in Salt Lake City. Back to the article: "The Journals exploration of church financial holdings included interviews with Clarke and top Latter-day Saint officials, including Presiding Bishop Grald Causs, the ecclesiastical leader who oversees the Utah-based faiths vast financial, real estate, investment and charitable operations. The SEC alleges that from 1997 through 2019 Ensign Peak failed to file 13F forms, which are documents that certain investment managers must disclose quarterly, listing the securities that they manage. (Deseret News) The statement here by the church is a flat out lie, and as a member of record I beg any church leader to explain to me how this is not as damning towards their honesty as it appears to be. If you're reading this post, you have almost certainly heard of the Church of Jesus Christ of Latter-day Saints holding an investment fund worth around $124 billion dollars called Ensign Peak in recent weeks. To give a better overview of this topic, we're going to refer to the Salt Lake Tribune's coverage of the recent Wall Street Journal article by Peggy Fletcher Stack, because it covers some of the quotes from Mormon leaders along with Ensign Peak about the fund without getting as deep into the weeds as the WSJ article does. BYU Marriott School of Business. Bouncing back since early 2020, Ensign Peak has posted quarterly gains of between $2.4 billion and $6.9 billion. The filings do not include all the churchs financial holdings, such as bonds, and the church isnt required to disclose its holdings in property or private companies. Tax avoidance: Nielsens document claims EPA has not disputed his original allegations that 1) EPA engaged in no religious, charitable or educational activities in the entire relevant period, 1997-2019, and 2) EPAs only distributions over 22 years were for the for-profit operations of an insurance company and a luxury shopping mall. This is a very interesting poll, because it implies that the more active in the church you are, the less transparent you want them to be. Analytic Investors, Inc. Steven Thorley. Those organizations will not only help people in need with the money, but they will be transparent about how they spend your money. Religion Unplugged reached EPA's managing director Roger Clark by phone on Monday, offering to explain key parts of this story and to ask questions for EPA to give a response. And he suggested Congress and regulators have a duty to act upon the disclosures. The Journal reported that some of the money comes from donations from church members, a practice also known as tithing in which parishioners must give 10% of their annual income to remain in good standing. And while we can point to a laundry list of items that show this church is not true, this is a big reason you know that the church is not good. the statement reads. The church literally created over a dozen shell companies to hide their finances, so please forgive me if I don't believe the church's prophets when they declare the church complies with all applicable law governing our donations, investments, taxes and reserves. The stake bounced up again to $102,000 in June. Nielsen was also someone who had experience on Wall Street, working at a major New York hedge fund for five years and obtaining an MBA at UCLA before EPA recruited him in 2010 as an investment portfolio manager. 6 (November/December 2016), Available at SSRN: If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. Court documents submitted in California by the churchs attorneys say the fund has been around since 1997, seeded initially by excess tithing funds to create a rainy day account. If we truly believe that the world is going to fall into chaos before the second coming of Christ, does the church really believe that stocks and bonds are going to hold value then? In criminal conduct, EPA has engaged in a Klein conspiracy to defraud the IRS by pretending to be tax-exempt while concealing and falsifying the facts of its massive securities investment business, the document states. 72, No. Ensign Peak Advisors ( email) 60 East South Temple 4th Floor Salt Lake City, UT 84111 United States. Ordinary taxpayers now see that, while they are expected to honor the tax laws, a double standard in enforcement exists with respect to a wealthy and politically-connected organization such as EPA, says the document from Mr. Nielsen. [5] History [ edit] "That same poverty continues from one generation to another, until people pay their tithing." Ensign Peak Advisors ( email) 60 East South Temple 4th Floor Salt Lake City, UT 84111 United States. BYU Marriott School of Business. He was a kid when the Swift raids split his family. "We allege that the LDS Church's investment manager, with the Church's knowledge, went to great lengths to avoid disclosing the Church's investments, depriving the Commission and the investing public of accurate market information," Gurbir Grewal, Director of the SEC's Division of Enforcement, said in a statement. Or how about the many active members who not only give 10% to the church, but contribute fast offerings each month (or more) only to find out that the church earns a million dollars on the gain alone every single hour, and yet instead of using it to help those in need, they ask you to contribute more instead of being selfish and using it for worldly things such as a family day out or a weekend trip with the kids. . Search our database of over 100 million company and executive profiles. Roger served as a professor for more than ten years on the faculty of the Marriott School of Management at Brigham Young University. For members of The Church of Jesus Christ of Latter-day Saints, tithing donating 10% of ones income to the faith is more of a sense of commitment than it is the church needing the money, Roger Clarke, head of Ensign Peak Advisors, which manages the denominations investing holdings, told The Wall Street Journal. And those companies might consider it an honor when a morally and financially scrutinizing investor such as EPA buys shares. As for the idea that the $124 billion is for the years leading up to Jesus' return, I also think that is a ridiculous notion. To receive the free newsletter in your inbox, subscribe here. Contact Us The Salt Lake Tribune gets straight to the point here, because this is a massive statement and acknowledgement by the Mormon church. If the church truly believed what they were doing was true and good, they would be open and honest and tell every member to research their claims and hold them accountable. (In Conference Report, Apr. SEC filings and online finance sites show that EPA still has large stock ownership positions totaling billions of dollars in major companies such as Apple Inc., Microsoft Corp., Amazon.com Inc. and Alphabet Inc. A prominent former Latter-day Saint, James Huntsman, filed a federal lawsuit against the church, seeking to regain more than $5 million in tithing he gave the church over 25 years. In recent years, the churchs reserve fund has grown by about 7% annually, Clarke told The Journal, mainly from returns on existing investments, not member donations.". He urged the agency to strip the denomination of its tax-exempt status, saying Ensign may owe billions in taxes. And as we're learning more and more each day, they are right to fear that, because if you're willing to approach their history and practices in the way you approach any other organization, product, or belief, you will realize that not only is the church demonstrably false, but it's actually not very good, either. Obviously I no longer believe in the truth claims of the church after researching the historical and doctrinal topics, but I am still a member of record who has contributed to the church's wealth. Although the stories broke in 2019, the continued coverage and fallout was included among the top 25 religion stories of 2020 by the Religion News Association. Lawrence Harris For the original stories in December of 2019,ReligionUnplugged.comreceived awards from Religion News Association and TheSociety for Advancing Business Editing and Writing and was a finalist foran EPPY Award for best business reporting from Editor & Publisher. Get Contact Info for All Departments Ensign Peak Advisors Org Chart Ensign Peak has since made what amounts to a stunning series of quarterly reports to federal authorities on the portion of the Utah-based faiths overall holdings it manages, not least for the portfolios sheer size. Ensign Peak Advisors. sltrib.com 1996-2023 The Salt Lake Tribune. The head of EPA, Roger Clarke, indicated to the Journal that EPA is a rainy-day account to be used in difficult economic times. Some church leaders suggested the fund could be used in the event of an economic or financial crisis. The Ensign Peak Advisors office is located above a food court in Salt Lake City and doesn't appear in the list of companies at that building lobby. I can't overstate how blatantly dishonest this statement is, and the church absolutely knows how deceptive and insulting such a rationale for creating a system of shell companies to hide their wealth is. As of June, the funds shares in five Big Tech companies Apple, Microsoft, Google, Amazon and Facebook were worth nearly $9 billion, or 18% of its total value. Shortly afterward, Ensign Peak sold it all, judging from its absence in recent reports. That lines up with the information outlined from the 2009 release, and it also lines up with the church's announcement last year at General Conference that that have given $2 billion over 34 years through this fund. "These funds are then used to build up the Church and to further God's work throughout the world," LDS' website reads. Software Updates. Harindra De Silva. Back to the article: "Here are some other takeaways from The Journal story: The document states in several places that Nielsen became more disillusioned over time as he worked at the firm and believed EPA was not using its resources for charitable, educational or religious purposes. Free newsletter in your inbox, subscribe here in taxes or a look, by silence, or by only! Of between $ 2.4 billion and $ 6.9 billion has a $ 100 billion portfolio, according to 13F. As LGBTQ, African American and womens rights groups History [ edit ] `` same. 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