0001442055-11-000004.txt : 20111012 0001442055-11-000004.hdr.sgml : 20111012 20111012162052 ACCESSION NUMBER: 0001442055-11-000004 CONFORMED SUBMISSION TYPE: 13F-HR PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20110930 FILED AS OF DATE: 20111012 DATE AS OF CHANGE: 20111012 EFFECTIVENESS DATE: 20111012 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 FILM NUMBER: 111137748 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 cimformsept11.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: September 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 October 12, 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: 234 Form 13F Information Table Value Total: $794,087 (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 1024 17803 SH Sole 17803 3 M Company COM 88579Y101 7756 108032 SH Sole 108032 Affiliated Managers Group COM 008252108 1120 14347 SH Defined 01 14347 Air Products & Chemicals COM 009158106 1273 16670 SH Sole 16670 Alpha Natural Resources Inc. COM 02076X102 253 14306 SH Sole 14306 Ambassadors Group Inc COM 023177108 567 98945 SH Defined 01 98945 American Express COM 025816109 8162 181787 SH Sole 181787 Analog Devices COM 032654105 1301 41620 SH Sole 41620 Annaly Capital Management Inc. COM 035710409 13204 793965 SH Defined 01 793965 Apollo Investment Corp. COM 03761U106 3894 518206 SH Defined 01 518206 Ares Capital Corp. COM 04010L103 19735 1433198 SH Defined 01 1433198 Auto Data Processing Inc COM 053015103 1420 30108 SH Sole 30108 B&G Foods, Inc. COM 05508R106 295 17712 SH Sole 17712 Barclays 1-3 Year Credit Bond COM 464288646 2506 24105 SH Sole 24105 Barclays 20+ Year Treasury Bon COM 464287432 2100 17386 SH Sole 17386 Barclays 7-10 Year Treasury Bo COM 464287440 4264 40581 SH Sole 40581 Barclays Capital High Yield Bo COM 78464A417 12459 344267 SH Defined 01 344267 Barclays Capital Municipal Bon COM 78464A458 1459 62339 SH Sole 62339 Barclays Intermediate Credit B COM 464288638 2929 27431 SH Sole 27431 Barclays MBS Bond Fund - iShar COM 464288588 4556 42112 SH Sole 42112 Barclays Short Term Municipal COM 78464A425 1415 58100 SH Sole 58100 Barrick Gold Corp. COM 067901108 676 14499 SH Sole 14499 Becton Dickinson COM 075887109 1282 17482 SH Sole 17482 Bed Bath & Beyond Inc COM 075896100 7737 135009 SH Sole 135009 Berkshire Hathaway (Class A) COM 084670108 320 3 SH Defined 01 3 Berkshire Hathaway (Class B) COM 084670702 6261 88139 SH Sole 88139 BHP Billiton Ltd. (Adr 1:2) COM 088606108 774 11656 SH Sole 11656 Bio-Reference Laboratories COM 09057G602 654 35519 SH Defined 01 35519 BlackRock Kelso Capital Corp. COM 092533108 9500 1301384 SH Sole 1301384 Broadridge Financial Solutions COM 11133T103 7318 363349 SH Sole 363349 Brown And Brown Inc COM 115236101 2121 119152 SH Defined 01 119152 Brown Forman Corp. (Class B) COM 115637209 1501 21394 SH Sole 21394 CF Industries Holdings Inc. COM 125269100 613 4969 SH Sole 4969 Chevron Corp. COM 166764100 15630 168812 SH Sole 168812 Cimarex Energy Co. COM 171798101 373 6704 SH Sole 6704 Cliffs Natural Resources COM 18683K101 403 7871 SH Sole 7871 Clorox COM 189054109 1435 21641 SH Sole 21641 Colgate Palmolive Co COM 194162103 1558 17570 SH Sole 17570 Commerce Bancshares Inc COM 200525103 1368 39355 SH Sole 39355 Compass Diversified Holdings COM 20451Q104 2633 216200 SH Defined 01 216200 Conoco Phillips COM 20825C104 2369 37411 SH Sole 37411 Consol Energy Inc. COM 20854P109 413 12183 SH Sole 12183 Consumer Discretionary Select COM 81369Y407 5421 155519 SH Sole 155519 Consumer Staples Select Sector COM 81369Y308 5887 198470 SH Sole 198470 Contango Oil & Gas Co COM 21075N204 631 11530 SH Sole 11530 Cullen / frost Bankers COM 229899109 1200 26171 SH Sole 26171 CYS Investments COM 12673A108 6684 552880 SH Sole 552880 DB US Dollar Index - Powershar COM 73936D107 1067 47816 SH Sole 47816 Diageo (Adr 1:4) COM 25243Q205 15039 198059 SH Sole 198059 DJ-UBS Commodity Index Total R COM 06738C778 14711 352438 SH Sole 352438 DJ-UBS Copper Subindex Total R COM 06739F101 714 17767 SH Sole 17767 DJ-UBS Lead Subindex Total Ret COM 06739H263 622 12734 SH Sole 12734 DJ-UBS Livestock Subindex Tota COM 06739H743 314 10073 SH Sole 10073 Douglas Dynamics Inc. COM 25960R105 513 40117 SH Defined 01 40117 Dow Jones-UBS Agriculture Subi COM 06739H206 273 5246 SH Sole 5246 Dow Jones Select Dividend Inde COM 464287168 297 6167 SH Sole 6167 Dow Jones U.S. Utilities Secto COM 464287697 2137 26141 SH Sole 26141 Du Pont (Ei) De Nemours P-A COM 263534109 6481 162148 SH Sole 162148 Eaton Vance Corp. COM 278265103 1127 50619 SH Sole 50619 Emerson Electric Co. COM 291011104 11851 286889 SH Sole 286889 EnCana Corp COM 292505104 410 21342 SH Sole 21342 Energy Select Sector SPDR COM 81369Y506 7812 133507 SH Sole 133507 Enerplus Resources Fund (Unit COM 292766102 552 22483 SH Sole 22483 European Goldfield LTD COM 298774100 510 64128 SH Sole 64128 Exxon Mobil Corp. COM 30231G102 8071 111122 SH Sole 111122 Fidelity National Financial In COM 31620R105 8471 558056 SH Defined 01 558056 Fifth Street Finance Corp. COM 31678A103 2226 238794 SH Defined 01 238794 Financials Select Sector SPDR COM 81369Y605 5530 468272 SH Sole 468272 First Majestic Silver Corp. COM 32076V103 564 37102 SH Sole 37102 FORTUNE BRANDS INC COM 349631101 4901 90619 SH Sole 90619 Forward Air Corp. COM 349853101 840 33005 SH Defined 01 33005 Franco Nevada Corp. COM 351858105 714 19790 SH Sole 19790 Franklin Street Properties Cor COM 35471R106 7155 632625 SH Defined 01 632625 Freeport Mcmoran Copper (Class COM 35671D857 641 21038 SH Sole 21038 Full Circle Capital Corp. COM 359671104 812 114836 SH Defined 01 114836 Generac Holdings, Inc. COM 368736104 858 45593 SH Defined 01 45593 General Dynamics Corp. COM 369550108 1173 20616 SH Sole 20616 General Mills COM 370334104 1513 39314 SH Sole 39314 Gladstone Capital Corporation COM 376535100 2887 420816 SH Defined 01 420816 Gladstone Commercial Corp. COM 376536108 1210 77174 SH Defined 01 77174 Gladstone Investment Corp. COM 376546107 1247 183333 SH Defined 01 183333 GlaxoSmithKline Plc (Adr 1:2) COM 37733W105 9489 229819 SH Sole 229819 Gold Trust - iShares COM 464285105 3312 209243 SH Sole 209243 Gold Trust - SPDR COM 78463V107 1048 6628 SH Sole 6628 Goldcorp COM 380956409 886 19405 SH Sole 19405 Golub Capital BDC, Inc. COM 38173M102 6187 416604 SH Defined 01 416604 Google Inc. COM 38259P508 7082 13750 SH Sole 13750 Graco Inc COM 384109104 8139 238411 SH Defined 01 238411 Guggenheim Multi-Asset Income COM 18383M506 291 15564 SH Sole 15564 Haemonetics Corp. COM 405024100 755 12904 SH Defined 01 12904 Hatteras Financial Corp COM 41902R103 3932 156282 SH Defined 01 156282 Health Care Select Sector SPDR COM 81369Y209 8401 264775 SH Sole 264775 Heartland Express COM 422347104 633 46693 SH Defined 01 46693 Hercules Technology Growth Cap COM 427096508 4005 470081 SH Defined 01 470081 Hibbett Sports Inc. COM 428567101 830 24486 SH Defined 01 24486 HNI Corp. COM 404251100 6238 326110 SH Defined 01 326110 Home Depot Inc. COM 437076102 7513 228571 SH Sole 228571 Horizon Technology COM 44045A102 2207 150563 SH Defined 01 150563 IBM COM 459200101 1635 9347 SH Sole 9347 iBoxx $ High Yield Corporate B COM 464288513 10633 128369 SH Sole 128369 iBoxx $ Investment Grade Corpo COM 464287242 11765 104756 SH Sole 104756 Illinois Tool Works Inc COM 452308109 6704 161142 SH Sole 161142 Imperial Oil Ltd. (US Listing) COM 453038408 514 14235 SH Sole 14235 Industrials Select Sector SPDR COM 81369Y704 5426 185700 SH Sole 185700 Inmet Mining Corp. COM 457983104 410 9640 SH Sole 9640 Intermediate-Term Corporate Bo COM 92206C870 2939 36297 SH Sole 36297 John Wiley & Sons (Class A) COM 968223206 1177 26496 SH Defined 01 26496 Johnson & Johnson COM 478160104 15621 245266 SH Sole 245266 Kohlberg Capital Corp. COM 500233101 1476 252256 SH Defined 01 252256 Landauer COM 51476K103 6333 127827 SH Sole 127827 Landstar System Inc COM 515098101 2366 59815 SH Defined 01 59815 Leucadia National Corp. COM 527288104 4703 207369 SH Sole 207369 Linear Technology Corp. COM 535678106 7903 285808 SH Sole 285808 Lockheed Martin Corp. COM 539830109 7489 103097 SH Sole 103097 Lowes Companies COM 548661107 6443 333126 SH Sole 333126 M&T Bank Corp. COM 55261F104 1220 17454 SH Sole 17454 MAG Silver Corp. COM 55903Q104 243 30961 SH Sole 30961 Main Street Capital Corp. COM 56035L104 351 19774 SH Defined 01 19774 Manatuck Hill Mariner Offshore COM 562996983 620 3764 SH Sole 3764 Marathon Oil Corp. COM 565849106 1057 48976 SH Sole 48976 Markel Corp. COM 570535104 7641 21396 SH Sole 21396 Martin Marietta Materials COM 573284106 5764 91176 SH Sole 91176 Mastercard Inc. COM 57636Q104 5580 17595 SH Sole 17595 Materials Select Sector SPDR COM 81369Y100 1628 55469 SH Sole 55469 McDonald's Corp COM 580135101 1621 18461 SH Sole 18461 MCG Capital Corp. COM 58047P107 1203 303843 SH Defined 01 303843 Mcgraw Hill Co Inc COM 580645109 9633 234957 SH Sole 234957 McMoRan Exploration Co. COM 582411104 407 41000 SH Sole 41000 Mdu Resources Group COM 552690109 1304 67966 SH Sole 67966 Medallion Financial Corp COM 583928106 2977 320069 SH Defined 01 320069 Medical Action Industries COM 58449L100 472 93440 SH Defined 01 93440 Medley Capital Corp. COM 58503F106 2017 200086 SH Defined 01 200086 Mesabi Trust COM 590672101 400 19181 SH Sole 19181 Microsoft Corp. COM 594918104 15862 637277 SH Sole 637277 Mohawk Industries COM 608190104 352 8210 SH Sole 8210 Molycorp Inc. COM 608753109 582 17691 SH Sole 17691 Morningstar, Inc. COM 617700109 732 12975 SH Defined 01 12975 Mosaic Co. COM 61945C103 445 9081 SH Sole 9081 MSCI All Country World Index F COM 464288257 2979 76140 SH Sole 76140 MSCI Australia Index - iShares COM 464286103 1355 67544 SH Sole 67544 MSCI Canada Index Fund - iShar COM 464286509 1368 53661 SH Sole 53661 MSCI Emerging Markets - Vangua COM 922042858 1831 51111 SH Sole 51111 MSCI Emerging Markets Index Fu COM 464287234 1889 53828 SH Sole 53828 MSCI Japan Index Fund - iShare COM 464286848 1577 166683 SH Sole 166683 Mueller Industries , Inc. COM 624756102 400 10355 SH Defined 01 10355 Murphy Oil Corp. COM 626717102 433 9816 SH Sole 9816 MVC Capital Inc COM 553829102 6914 660404 SH Defined 01 660404 New Jersey Resources COM 646025106 1413 33188 SH Sole 33188 New Mountain Finance Corp. COM 647551100 639 50309 SH Defined 01 50309 Newmont Mining Corp COM 651639106 1042 16551 SH Sole 16551 NextEra Energy, Inc. COM 65339F101 1407 26041 SH Sole 26041 NGP Capital Ressources Company COM 62912R107 2174 332437 SH Defined 01 332437 Nordstrom Inc COM 655664100 1536 33621 SH Sole 33621 NorthStar Realty Finance Corp. COM 66704R100 749 227092 SH Defined 01 227092 Novartis AG (Adr) COM 66987V109 1399 25081 SH Sole 25081 NXP Semiconductors COM N6596X109 1192 84443 SH Sole 84443 Occidental Petroleum Corporati COM 674599105 1108 15490 SH Sole 15490 Owens & Minor Inc Holding COM 690732102 1321 46387 SH Sole 46387 P.F.Chang's China Bistro, Inc. COM 69333Y108 1346 49411 SH Defined 01 49411 Patriot Coal Corp. COM 70336T104 259 30635 SH Sole 30635 Patterson Companies Inc COM 703395103 1151 40202 SH Defined 01 40202 Paychex COM 704326107 8021 304184 SH Sole 304184 Peabody Energy COM 704549104 385 11350 SH Sole 11350 PennantPark Floating Rate Capi COM 70806A106 1661 157429 SH Defined 01 157429 PennantPark Investment Corp. COM 708062104 8095 907509 SH Defined 01 907509 Pepsico COM 713448108 15056 243230 SH Sole 243230 Pfizer COM 717081103 7020 397034 SH Sole 397034 Piedmont Natural Gas COM 720186105 1398 48387 SH Sole 48387 Plains Exploration & Productio COM 726505100 452 19883 SH Sole 19883 Plum Creek Timber Co COM 729251108 6969 200787 SH Sole 200787 Potash Corp. of Saskatchewan I COM 73755L107 745 17227 SH Sole 17227 Powershares DB Crude Oil - Sho COM 25154K874 592 11200 SH Sole 11200 Praxair COM 74005P104 1407 15055 SH Sole 15055 Procter & Gamble COM 742718109 1452 22981 SH Sole 22981 PROGRESSIVE CORP. COM 743315103 6420 361499 SH Sole 361499 ProShares Short S&P 500 COM 74347R503 1177 25534 SH Sole 25534 Prospect Capital Corp COM 74348T102 102 12177 SH Defined 01 12177 Quest Diagnostics Inc COM 74834L100 369 7476 SH Sole 7476 Rayonier Inc COM 754907103 7765 211058 SH Defined 01 211058 REIT Index ETF- Vanguard COM 922908553 8624 169522 SH Sole 169522 Ritchie Bros. Auction COM 767744105 981 48610 SH Defined 01 48610 RLI Corp. COM 749607107 2345 36881 SH Defined 01 36881 Ross Stores COM 778296103 543 6897 SH Sole 6897 Royal Gold COM 780287108 823 12846 SH Sole 12846 Russell 2000 Growth Index Fund COM 464287648 8734 118877 SH Sole 118877 Russell 2000 Value Index Fund COM 464287630 2156 37797 SH Sole 37797 S&P 500 Growth Index Fund - iS COM 464287309 816 13323 SH Sole 13323 S&P 500 Value Index Fund - iSh COM 464287408 515 9985 SH Sole 9985 S&P GSCI Crude Oil Total Retur COM 06738C786 2873 144832 SH Sole 144832 Sanderson Farms, Inc. COM 800013104 893 18807 SH Defined 01 18807 Saratoga Investment Corporatio COM 80349A208 194 11739 SH Defined 01 11739 Scotts Miracle Gro Co COM 810186106 699 15668 SH Defined 01 15668 Seabridge Gold Inc. COM 811916105 255 11347 SH Sole 11347 Sherwin Williams COM 824348106 5792 77928 SH Sole 77928 Short-Term Corporate Bond Fund COM 92206C409 985 12693 SH Sole 12693 Sigma Aldrich Corp COM 826552101 8310 134480 SH Defined 01 134480 Silver Standard Resources Inc. COM 82823L106 461 25104 SH Sole 25104 Silver Trust - iShares COM 46428Q109 1143 39527 SH Sole 39527 Silver wheaton Corporation COM 828336107 794 26972 SH Sole 26972 Simpson Manufacturing COM 829073105 690 27672 SH Defined 01 27672 Smith & Nephew (Adr 1:5) COM 83175M205 388 8676 SH Sole 8676 Soc Quimica Y Minera Chile (Ad COM 833635105 580 12131 SH Sole 12131 Solar Capital, LTD. COM 83413U100 7254 360347 SH Defined 01 360347 Solar Senior Capital Ltd. COM 83416M105 214 15000 SH Defined 01 15000 Source Capital COM 836144105 2958 71182 SH Defined 01 71182 Southern Co. COM 842587107 10007 236172 SH Sole 236172 Southwestern Energy Co. COM 845467109 554 16616 SH Sole 16616 SPDR Barclays Capital Intermed COM 78464A375 2442 73680 SH Sole 73680 SPDR Barclays Capital Mortgage COM 78464A383 1041 37362 SH Sole 37362 Sysco Corp. COM 871829107 1241 47911 SH Sole 47911 T Rowe Price Group Inc COM 74144T108 1299 27200 SH Sole 27200 Talisman Energy (US Listing) COM 87425E103 385 31355 SH Sole 31355 Target Corp. COM 87612E106 1378 28100 SH Sole 28100 Techne Corp. COM 878377100 729 10713 SH Defined 01 10713 Technology Select Sector SPDR COM 81369Y803 9535 404014 SH Sole 404014 Thermo Fisher Scientific Inc. COM 883556102 7474 147596 SH Sole 147596 THL Credit COM 872438106 3690 337918 SH Defined 01 337918 TICC Capital Corp. COM 87244T109 606 74140 SH Sole 74140 TJX Companies Inc COM 872540109 7266 130981 SH Sole 130981 Triangle Capital Corp COM 895848109 3327 218601 SH Sole 218601 Tyco International Ltd. COM H89128104 6134 150517 SH Sole 150517 United Technologies COM 913017109 1326 18840 SH Sole 18840 Utilities Select Sector SPDR COM 81369Y886 311 9265 SH Sole 9265 VCA Antech, Inc. COM 918194101 1417 88696 SH Defined 01 88696 Vectren COM 92240G101 7667 283130 SH Sole 283130 Vulcan Materials Co. COM 929160109 3899 141464 SH Sole 141464 Wal Mart Stores Inc COM 931142103 7540 145276 SH Sole 145276 Walter Energy, Inc. COM 93317Q105 334 5569 SH Sole 5569 Waters Corp. COM 941848103 7235 95835 SH Sole 95835 Wells Fargo Co CS COM 949746101 5392 223546 SH Sole 223546 West Pharmaceutical Serv COM 955306105 647 17442 SH Defined 01 17442 White Mountain Insurance COM G9618E107 1714 4224 SH Sole 4224 Willis Group Hldg COM G96666105 7081 206021 SH Sole 206021 WR Berkley Corp COM 084423102 8105 272990 SH Defined 01 272990 WW Grainger Inc COM 384802104 1701 11372 SH Sole 11372 Yamana Gold Inc (US Listing) COM 98462Y100 747 54701 SH Sole 54701 Zebra Technologies COM 989207105 984 31806 SH Defined 01 31806