0001442055-11-000003.txt : 20110713 0001442055-11-000003.hdr.sgml : 20110713 20110713132108 ACCESSION NUMBER: 0001442055-11-000003 CONFORMED SUBMISSION TYPE: 13F-HR CONFIRMING COPY: PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20110630 FILED AS OF DATE: 20110713 DATE AS OF CHANGE: 20110713 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONFLUENCE INVESTMENT MANAGEMENT LLC CENTRAL INDEX KEY: 0001442056 IRS NUMBER: 261764456 FILING VALUES: FORM TYPE: 13F-HR SEC ACT: 1934 Act SEC FILE NUMBER: 028-13334 BUSINESS ADDRESS: STREET 1: 349 MARSHALL AVENUE, SUITE 302 CITY: ST. LOUIS STATE: MO ZIP: 63119 BUSINESS PHONE: 314-743-5090 MAIL ADDRESS: STREET 1: 349 MARSHALL AVENUE, SUITE 302 CITY: ST. LOUIS STATE: MO ZIP: 63119 13F-HR 1 cimformjun11.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 13F Form 13F COVER PAGE Report for the Calendar Year or Quarter Ended: June 30, 2011 Check here if Amendment [ ]; Amendment Number: ------ This Amendment (Check only one.): [ ] is a restatement. [ ] adds new holdings entries. Institutional Investment Manager Filing this Report: Name: Confluence Investment Management LLC Address: 349 Marshall Avenue, Suite 302 Saint Louis, MO 63119 Form 13F File Number: The institutional investment manager filing this report and the person by whom it is signed hereby represent that the person signing the report is authorized to submit it, that all information contained herein is true, correct and complete, and that it is understood that all required items, statements, schedules, lists, and tables, are considered integral parts of this form. Person Signing this Report on Behalf of Reporting Manager: Name: Joseph J. Hanzlik Title: Senior Vice President / CFO Phone: 314-743-5096 Signature, Place, and Date of Signing: /s/ Joseph J. Hanzlik Saint Louis, MO July 13, 2011 Report Type (Check only one.): [X] 13F HOLDINGS REPORT. [ ] 13F NOTICE. [ ] 13F COMBINATION REPORT. Form 13F SUMMARY PAGE Report Summary: Number of Other Included Managers: 1 Form 13F Information Table Entry Total: 242 Form 13F Information Table Value Total: $857,435 (thousands) List of Other Included Managers: Provide a numbered list of the name(s) and Form 13F file number(s) of all institutional investment managers with respect to which this report is filed, other than the manager filing this report. No. Form 13F File # Name 01 028-06487 First Trust Advisors L.P. FORM 13F INFORMATION TABLE FORM 13F INFORMATION TABLE VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE ------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- -------- 10+ Year Credit Bond - iShares COM 464289511 609 11295 SH Sole 11295 3 M Company COM 88579Y101 9314 98195 SH Sole 98195 Affiliated Managers Group COM 008252108 1493 14715 SH Defined 01 14715 AFLAC COM 001055102 1024 21947 SH Sole 21947 Air Products & Chemicals COM 009158106 1285 13449 SH Sole 13449 Alpha Natural Resources Inc. COM 02076X102 621 13662 SH Sole 13662 Ambassadors Group Inc COM 023177108 1725 195330 SH Defined 01 195330 American Express COM 025816109 9403 181879 SH Sole 181879 Analog Devices COM 032654105 1315 33585 SH Sole 33585 Anglo Platinum Ltd (Adr) COM 03486T103 652 41962 SH Sole 41962 Annaly Capital Management Inc. COM 035710409 13795 764687 SH Defined 01 764687 Apollo Investment Corp. COM 03761U106 5292 518317 SH Defined 01 518317 Ares Capital Corp. COM 04010L103 22316 1388683 SH Defined 01 1388683 Auto Data Processing Inc COM 053015103 1326 25162 SH Sole 25162 Avalon Rare Metals Inc. COM 053470100 332 47775 SH Sole 47775 Avery Dennison Corp. COM 053611109 3152 81587 SH Sole 81587 B&G Foods, Inc. COM 05508R106 845 40965 SH Sole 40965 Barclays 1-3 Year Credit Bond COM 464288646 1988 18946 SH Sole 18946 Barclays 20+ Year Treasury Bon COM 464287432 350 3718 SH Sole 3718 Barclays 7-10 Year Treasury Bo COM 464287440 3066 31987 SH Sole 31987 Barclays Capital High Yield Bo COM 78464A417 16522 410793 SH Defined 01 410793 Barclays Capital Municipal Bon COM 78464A458 1191 52598 SH Sole 52598 Barclays Intermediate Credit B COM 464288638 2019 18937 SH Sole 18937 Barclays MBS Bond Fund - iShar COM 464288588 4078 38212 SH Sole 38212 Barclays Short Term Municipal COM 78464A425 1179 48628 SH Sole 48628 Barrick Gold Corp. COM 067901108 641 14149 SH Sole 14149 Becton Dickinson COM 075887109 1211 14053 SH Sole 14053 Bed Bath & Beyond Inc COM 075896100 8437 144548 SH Sole 144548 Berkshire Hathaway (Class A) COM 084670108 348 3 SH Defined 01 3 Berkshire Hathaway (Class B) COM 084670702 6530 84379 SH Sole 84379 BHP Billiton Ltd. (Adr 1:2) COM 088606108 735 7763 SH Sole 7763 Bio-Reference Laboratories COM 09057G602 707 33829 SH Defined 01 33829 BlackRock Kelso Capital Corp. COM 092533108 11493 1281270 SH Sole 1281270 Broadridge Financial Solutions COM 11133T103 8148 338500 SH Sole 338500 Brown And Brown Inc COM 115236101 2660 103666 SH Defined 01 103666 Brown Forman Corp. (Class B) COM 115637209 1330 17804 SH Sole 17804 Cemex SA de CV (Adr 1:10) COM 151290889 371 43119 SH Sole 43119 Cenovus Energy Inc. COM 15135U109 781 20746 SH Sole 20746 CF Industries Holdings Inc. COM 125269100 692 4882 SH Sole 4882 Chevron Corp. COM 166764100 16458 160030 SH Sole 160030 Cimarex Energy Co. COM 171798101 574 6381 SH Sole 6381 Cliffs Natural Resources COM 18683K101 710 7675 SH Sole 7675 Clorox COM 189054109 1204 17857 SH Sole 17857 Colgate Palmolive Co COM 194162103 1311 15000 SH Sole 15000 Commerce Bancshares Inc COM 200525103 1395 32448 SH Sole 32448 Compass Diversified Holdings COM 20451Q104 3483 211200 SH Defined 01 211200 Conoco Phillips COM 20825C104 1494 19876 SH Sole 19876 Consol Energy Inc. COM 20854P109 567 11705 SH Sole 11705 Consumer Discretionary Select COM 81369Y407 7819 194458 SH Sole 194458 Consumer Staples Select Sector COM 81369Y308 6105 195497 SH Sole 195497 Contango Oil & Gas Co COM 21075N204 658 11267 SH Sole 11267 CPI Corp. COM 125902106 3405 258911 SH Defined 01 258911 Cullen / frost Bankers COM 229899109 1157 20350 SH Sole 20350 Cypress Sharpridge Investments COM 23281A307 6954 542880 SH Defined 01 542880 DB US Dollar Index - Powershar COM 73936D107 439 20709 SH Sole 20709 Diageo (Adr 1:4) COM 25243Q205 15533 189726 SH Sole 189726 DJ-UBS Commodity Index Total R COM 06738C778 17904 379079 SH Sole 379079 DJ-UBS Copper Subindex Total R COM 06739F101 649 11578 SH Sole 11578 DJ-UBS Lead Subindex Total Ret COM 06739H263 826 12185 SH Sole 12185 DJ-UBS Livestock Subindex Tota COM 06739H743 392 13407 SH Sole 13407 DJ-UBS Platinum Subindex Total COM 06739H255 749 18651 SH Sole 18651 Douglas Dynamics Inc. COM 25960R105 250 15850 SH Defined 01 15850 Dow Jones U.S. Aerospace & Def COM 464288760 425 6477 SH Sole 6477 Dow Jones U.S. Utilities Secto COM 464287697 2503 30268 SH Sole 30268 Du Pont (Ei) De Nemours P-A COM 263534109 8185 151439 SH Sole 151439 Eaton Vance Corp. COM 278265103 1119 37029 SH Sole 37029 Emerging Currency Fund - Wisdo COM 97717W133 378 16243 SH Sole 16243 Emerson Electric Co. COM 291011104 14869 264340 SH Sole 264340 EnCana Corp COM 292505104 919 29862 SH Sole 29862 Energy Select Sector SPDR COM 81369Y506 11221 148914 SH Sole 148914 Enerplus Resources Fund (Unit COM 292766102 690 21837 SH Sole 21837 European Goldfield LTD COM 298774100 662 63131 SH Sole 63131 Exeter Resource Corp. COM 301835104 259 62077 SH Sole 62077 Exxon Mobil Corp. COM 30231G102 8656 106362 SH Sole 106362 Fidelity National Financial In COM 31620R105 9582 608783 SH Defined 01 608783 Fifth Street Finance Corp. COM 31678A103 2770 238794 SH Defined 01 238794 Financials Select Sector SPDR COM 81369Y605 10819 704852 SH Sole 704852 First Majestic Silver Corp. COM 32076V103 671 36376 SH Sole 36376 Forward Air Corp. COM 349853101 515 15236 SH Defined 01 15236 Franco Nevada Corp. COM 351858105 725 19401 SH Sole 19401 Franklin Street Properties Cor COM 35471R106 7490 580150 SH Defined 01 580150 Freeport Mcmoran Copper (Class COM 35671D857 736 13909 SH Sole 13909 Full Circle Capital Corp. COM 359671104 901 114036 SH Defined 01 114036 Generac Holdings, Inc. COM 368736104 868 44738 SH Defined 01 44738 General Dynamics Corp. COM 369550108 1214 16297 SH Sole 16297 General Mills COM 370334104 1192 32016 SH Sole 32016 Gladstone Capital Corporation COM 376535100 3888 420816 SH Defined 01 420816 Gladstone Commercial Corp. COM 376536108 1324 76376 SH Defined 01 76376 Gladstone Investment Corp. COM 376546107 1309 183333 SH Defined 01 183333 GlaxoSmithKline Plc (Adr 1:2) COM 37733W105 9155 213403 SH Sole 213403 Gold Trust - iShares COM 464285105 1102 75271 SH Sole 75271 Gold Trust - SPDR COM 78463V107 1218 8345 SH Sole 8345 Goldcorp COM 380956409 695 14396 SH Defined 01 14396 Golub Capital BDC, Inc. COM 38173M102 6051 405302 SH Sole 405302 Google Inc. COM 38259P508 6749 13328 SH Sole 13328 Graco Inc COM 384109104 7919 156319 SH Defined 01 156319 Haemonetics Corp. COM 405024100 817 12694 SH Defined 01 12694 Hatteras Financial Corp COM 41902R103 4130 146282 SH Defined 01 146282 Health Care Select Sector SPDR COM 81369Y209 6725 189288 SH Sole 189288 Heartland Express COM 422347104 748 45167 SH Defined 01 45167 Hercules Technology Growth Cap COM 427096508 4942 469747 SH Defined 01 469747 Hibbett Sports Inc. COM 428567101 1025 25177 SH Defined 01 25177 HNI Corp. COM 404251100 756 30105 SH Sole 30105 Home Depot Inc. COM 437076102 7542 208215 SH Sole 208215 Horizon Technology COM 44045A102 2284 144312 SH Defined 01 144312 IBM COM 459200101 1371 7992 SH Sole 7992 iBoxx $ High Yield Corporate B COM 464288513 12815 140344 SH Sole 140344 iBoxx $ Investment Grade Corpo COM 464287242 9687 87961 SH Sole 87961 Illinois Tool Works Inc COM 452308109 8221 145538 SH Sole 145538 Imperial Oil Ltd. (US Listing) COM 453038408 641 13759 SH Sole 13759 Industrials Select Sector SPDR COM 81369Y704 9547 256377 SH Sole 256377 Inmet Mining Corp. COM 457983104 670 9356 SH Sole 9356 Intermediate-Term Corporate Bo COM 92206C870 2762 34442 SH Sole 34442 ISE-Revere Natural Gas Index F COM 33734J102 540 25069 SH Sole 25069 John Wiley & Sons (Class A) COM 968223206 1459 28044 SH Defined 01 28044 Johnson & Johnson COM 478160104 15320 230300 SH Sole 230300 Kohlberg Capital Corp. COM 500233101 2005 252256 SH Defined 01 252256 Landauer COM 51476K103 7170 116410 SH Sole 116410 Landstar System Inc COM 515098101 2419 52054 SH Defined 01 52054 Linear Technology Corp. COM 535678106 8402 254455 SH Sole 254455 Lockheed Martin Corp. COM 539830109 7782 96108 SH Sole 96108 Lowes Companies COM 548661107 7415 318120 SH Sole 318120 M&T Bank Corp. COM 55261F104 1214 13798 SH Sole 13798 MAG Silver Corp. COM 55903Q104 300 30012 SH Sole 30012 Main Street Capital Corp. COM 56035L104 375 19774 SH Defined 01 19774 Manatuck Hill Mariner Offshore COM 562996983 642 3764 SH Sole 3764 Marathon Oil Corp. COM 565849106 1502 28517 SH Sole 28517 Markel Corp. COM 570535104 8235 20754 SH Defined 01 20754 Market Vectors High-Yield Muni COM 57060U878 752 25770 SH Sole 25770 Martin Marietta Materials COM 573284106 6445 80587 SH Sole 80587 Materials Select Sector SPDR COM 81369Y100 5178 131512 SH Sole 131512 McDonald's Corp COM 580135101 1386 16437 SH Sole 16437 MCG Capital Corp. COM 58047P107 1422 233843 SH Defined 01 233843 Mcgraw Hill Co Inc COM 580645109 8177 195105 SH Sole 195105 McMoRan Exploration Co. COM 582411104 734 39722 SH Sole 39722 Mdu Resources Group COM 552690109 1243 55248 SH Sole 55248 Medallion Financial Corp COM 583928106 3503 359260 SH Defined 01 359260 Medical Action Industries COM 58449L100 994 121984 SH Defined 01 121984 Medley Capital Corp. COM 58503F106 2044 174139 SH Defined 01 174139 Mercury General Corp COM 589400100 7230 183083 SH Defined 01 183083 Mesabi Trust COM 590672101 611 18252 SH Sole 18252 Microsoft Corp. COM 594918104 15860 609986 SH Sole 609986 Mohawk Industries COM 608190104 497 8281 SH Sole 8281 Molycorp Inc. COM 608753109 822 13455 SH Sole 13455 Morningstar, Inc. COM 617700109 697 11472 SH Defined 01 11472 Mosaic Co. COM 61945C103 594 8776 SH Sole 8776 MSCI All Country World Index F COM 464288257 3507 72679 SH Sole 72679 MSCI Australia Index - iShares COM 464286103 1694 65035 SH Sole 65035 MSCI Canada Index Fund - iShar COM 464286509 1637 51684 SH Sole 51684 MSCI Emerging Markets - Vangua COM 922042858 4196 86309 SH Sole 86309 MSCI Emerging Markets Index Fu COM 464287234 4054 85162 SH Sole 85162 MSCI Japan Index Fund - iShare COM 464286848 2258 216493 SH Sole 216493 Murphy Oil Corp. COM 626717102 618 9408 SH Sole 9408 MVC Capital Inc COM 553829102 9512 719002 SH Defined 01 719002 New Jersey Resources COM 646025106 1215 27234 SH Sole 27234 New Mountain Finance Corp. COM 647551100 466 36700 SH Defined 01 36700 New Zealand Dollar Fund - Wisd COM 97717W216 584 22913 SH Sole 22913 Newmont Mining Corp COM 651639106 647 11986 SH Sole 11986 NextEra Energy, Inc. COM 65339F101 1241 21597 SH Sole 21597 NGP Capital Resources Company COM 62912R107 2727 332543 SH Defined 01 332543 Nordstrom Inc COM 655664100 1320 28116 SH Sole 28116 NorthStar Realty Finance Corp. COM 66704R100 1378 341990 SH Defined 01 341990 Novartis AG (Adr) COM 66987V109 1267 20737 SH Sole 20737 Occidental Petroleum Corporati COM 674599105 1323 12720 SH Sole 12720 Owens & Minor Inc Holding COM 690732102 1296 37570 SH Sole 37570 Patriot Coal Corp. COM 70336T104 653 29319 SH Sole 29319 Patterson Companies Inc COM 703395103 1325 40279 SH Defined 01 40279 Paychex COM 704326107 8340 271498 SH Sole 271498 Peabody Energy COM 704549104 1027 17425 SH Sole 17425 PennantPark Floating Rate Capi COM 70806A106 1997 157397 SH Defined 01 157397 PennantPark Investment Corp. COM 708062104 10046 896148 SH Defined 01 896148 Pepsico COM 713448108 15940 226318 SH Sole 226318 Pfizer COM 717081103 13580 659240 SH Sole 659240 Piedmont Natural Gas COM 720186105 1195 39488 SH Sole 39488 Plains Exploration & Productio COM 726505100 736 19316 SH Sole 19316 Platinum Group Metals COM 72765Q205 272 155186 SH Sole 155186 Plum Creek Timber Co COM 729251108 4266 105239 SH Sole 105239 Potash Corp. of Saskatchewan I COM 73755L107 684 12000 SH Sole 12000 Praxair COM 74005P104 1362 12569 SH Sole 12569 Procter & Gamble COM 742718109 1329 20903 SH Sole 20903 Prospect Capital Corp COM 74348T102 123 12178 SH Defined 01 12178 Quest Diagnostics Inc COM 74834L100 6551 110843 SH Sole 110843 Rare Element Resources Ltd. COM 75381M102 337 30363 SH Sole 30363 Rayonier Inc COM 754907103 4641 71015 SH Defined 01 71015 REIT Index ETF- Vanguard COM 922908553 6399 106466 SH Sole 106466 Ritchie Bros. Auction COM 767744105 1264 45975 SH Defined 01 45975 RLI Corp. COM 749607107 2048 33077 SH Defined 01 33077 Ross Stores COM 778296103 712 8881 SH Sole 8881 Royal Gold COM 780287108 743 12694 SH Sole 12694 Russell 2000 Growth Index Fund COM 464287648 2102 22160 SH Sole 22160 Russell 2000 Value Index Fund COM 464287630 556 7575 SH Sole 7575 S&P 500 Growth Index Fund - iS COM 464287309 1244 17903 SH Sole 17903 S&P 500 Value Index Fund - iSh COM 464287408 838 13521 SH Sole 13521 S&P GSCI Crude Oil Total Retur COM 06738C786 3218 131489 SH Sole 131489 Sanderson Farms, Inc. COM 800013104 884 18504 SH Defined 01 18504 Saratoga Investment Corporatio COM 80349A208 242 11739 SH Defined 01 11739 Scotts Miracle Gro Co COM 810186106 790 15394 SH Defined 01 15394 Seabridge Gold Inc. COM 811916105 588 20827 SH Sole 20827 Sherwin Williams COM 824348106 4076 48599 SH Sole 48599 Short-Term Corporate Bond Fund COM 92206C409 920 11745 SH Sole 11745 Sigma Aldrich Corp COM 826552101 9534 129932 SH Defined 01 129932 Silver Standard Resources Inc. COM 82823L106 653 24460 SH Sole 24460 Silver Trust - iShares COM 46428Q109 968 28615 SH Sole 28615 Silver wheaton Corporation COM 828336107 646 19562 SH Sole 19562 Simpson Manufacturing COM 829073105 814 27247 SH Defined 01 27247 Smith & Nephew (Adr 1:5) COM 83175M205 481 8888 SH Sole 8888 Soc Quimica Y Minera Chile (Ad COM 833635105 771 11905 SH Sole 11905 Solar Capital, LTD. COM 83413U100 8892 360153 SH Defined 01 360153 Solar Senior Capital Ltd. COM 83416M105 269 15000 SH Defined 01 5000 Source Capital COM 836144105 6156 107212 SH Sole 107212 Southern Co. COM 842587107 8913 220727 SH Sole 220727 Southwestern Energy Co. COM 845467109 703 16396 SH Sole 16396 SPDR Barclays Capital Intermed COM 78464A375 2316 69731 SH Sole 69731 SPDR Barclays Capital Mortgage COM 78464A383 1087 39835 SH Sole 39835 Sysco Corp. COM 871829107 1202 38548 SH Sole 38548 Talisman Energy (US Listing) COM 87425E103 616 30040 SH Sole 30040 Target Corp. COM 87612E106 1114 23754 SH Sole 23754 Techne Corp. COM 878377100 835 10015 SH Defined 01 10015 Technology Select Sector SPDR COM 81369Y803 11387 443069 SH Sole 443069 Thermo Fisher Scientific Inc. COM 883556102 9327 144846 SH Sole 144846 THL Credit COM 872438106 4391 337803 SH Defined 01 337803 TICC Capital Corp. COM 87244T109 712 74140 SH Defined 01 74140 TJX Companies Inc COM 872540109 7245 137930 SH Sole 137930 Triangle Capital Corp COM 895848109 4035 218601 SH Defined 01 218601 Tyco International Ltd. COM H89128104 7255 146779 SH Sole 146779 UltraShort Euro - ProShares COM 74347W882 175 10427 SH Sole 10427 United Technologies COM 913017109 1417 16013 SH Sole 16013 Utilities Select Sector SPDR COM 81369Y886 396 11842 SH Sole 11842 VCA Antech, Inc. COM 918194101 1966 92716 SH Defined 01 92716 Vectren COM 92240G101 7357 264080 SH Sole 264080 Vulcan Materials Co. COM 929160109 4936 128108 SH Sole 128108 Wal Mart Stores Inc COM 931142103 7304 137452 SH Sole 137452 Walter Energy, Inc. COM 93317Q105 616 5320 SH Sole 5320 Waters Corp. COM 941848103 7433 77638 SH Sole 77638 Wells Fargo Co CS COM 949746101 6170 219875 SH Sole 219875 West Pharmaceutical Serv COM 955306105 1702 38897 SH Defined 01 38897 White Mountain Insurance COM G9618E107 1998 4755 SH Sole 4755 Willis Group Hldg COM G96666105 7909 192397 SH Sole 192397 WR Berkley Corp COM 084423102 8882 273809 SH Defined 01 273809 WW Grainger Inc COM 384802104 1490 9696 SH Sole 9696 Yamana Gold Inc (US Listing) COM 98462Y100 622 53489 SH Sole 53489 Zebra Technologies COM 989207105 1327 31459 SH Defined 01 31459