0001442055-12-000006.txt : 20121009 0001442055-12-000006.hdr.sgml : 20121008 20121009093114 ACCESSION NUMBER: 0001442055-12-000006 CONFORMED SUBMISSION TYPE: 13F-HR PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20120930 FILED AS OF DATE: 20121009 DATE AS OF CHANGE: 20121009 EFFECTIVENESS DATE: 20121009 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: 121133839 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 cimformsept12.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, 2012 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 9, 2012 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: 237 Form 13F Information Table Value Total: $1,153,181 (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 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 ------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- -------- VANGUARD EQUITY INCOME FUND AD 921921300 219 4301 SH Sole 4301.111 3M Company COM 88579Y101 13330 144233 SH Sole 144233 AFFILIATED MANAGERS GROUP COM 008252108 1395 11343 SH Combined 01 11343 Air Products & Chemicals Inc. COM 009158106 1906 23047 SH Sole 23047 ALLIED NEVADA GOLD CORP COM 019344100 600 15351 SH Sole 15351 American Capital Ltd. COM 02503Y103 1318 116101 SH Combined 01 116101 American Express Company COM 025816109 10315 181406 SH Sole 181406 Analog Devices, Inc. COM 032654105 2139 54597 SH Sole 54597 Anglo American Plc ADR COM 03485P201 369 25210 SH Sole 25210 Annaly Capital Management Inc. COM 035710409 14311 849828 SH Combined 01 849828 APOLLO INVESTMENT CORP COM 03761U106 3940 499993 SH Combined 01 499993 Ares Capital Corp. COM 04010L103 29125 1699265 SH Combined 01 1699265 Ares Commercial Real Estate COM 04013V108 171 10000 SH Combined 01 10000 Automatic Data Processing, Inc COM 053015103 2251 38373 SH Sole 38373 BARRICK GOLD CORP COM 067901108 473 11326 SH Sole 11326 Beam Inc. COM 073730103 6804 118255 SH Sole 118255 Becton, Dickinson and Company COM 075887109 1986 25278 SH Sole 25278 BED BATH & BEYOND INC COM 075896100 8576 136131 SH Sole 136131 BERKLEY W R CORP COM 084423102 9663 257754 SH Combined 01 257754 BERKSHIRE HATHAWAY INC DE CL COM 084670702 8380 95006 SH Sole 95006 Berkshire Hathaway Inc. - Clas COM 084670108 1062 8 SH Combined 01 8 BERRY PETE COMPANY CLASS COM 085789105 421 10374 SH Sole 10374 BHP BILLITON LIMITED SPONSO COM 088606108 490 7138 SH Sole 7138 BLACKROCK KELSO CAPITAL CORP COM 092533108 3165 325660 SH Combined 01 325660 BP PLC (Adr 1:6) COM 055622104 533 12593 SH Sole 12593 Broadridge Financial Solutions COM 11133T103 12131 519991 SH Sole 519991 BROWN-FORMAN CORP CL B COM 115637209 2536 38866 SH Sole 38866 Brown & Brown Inc. COM 115236101 3701 141945 SH Combined 01 141945 CAMECO CORP COM 13321L108 666 34258 SH Sole 34258 Chevron Corp. COM 166764100 24079 206583 SH Sole 206583 CIMAREX ENERGY COMPANY COM 171798101 748 12773 SH Sole 12773 CLAYMORE EXCHANGE TRADED COM 18383M548 2416 105603 SH Sole 105603 CLIFFS NATURAL RES INC COM 18683K101 267 6816 SH Sole 6816 Colgate-Palmolive Co. COM 194162103 2373 22130 SH Sole 22130 Commerce Bancshares, Inc. COM 200525103 2192 54344 SH Sole 54344 Compass Diversified Holdings COM 20451Q104 3195 216200 SH Combined 01 216200 ConocoPhillips COM 20825C104 2626 45920 SH Sole 45920 CONTANGO OIL & GAS INC NEW COM 21075N204 533 10842 SH Sole 10842 CUBIC CORP COMMON COM 229669106 1113 22242 SH Combined 01 22242 Cullen Frost Bankers, Inc. COM 229899109 2036 35449 SH Sole 35449 CURRENCYSHARES JAPANE COM 23130A102 222 1763 SH Sole 1763 CYS INVESTMENTS INC COM 12673A108 8102 575040 SH Combined 01 575040 DECKERS OUTDOOR CORP COM 243537107 2189 59742 SH Combined 01 59742 DELTIC TIMBER CORP COM 247850100 250 3832 SH Sole 3832 DEUTSCHE BANK AG LONDON POWERS COM 25154H566 184 13027 SH Sole 13027 Diageo (Adr 1:4) COM 25243Q205 20612 182840 SH Sole 182840 DISCOVERY COMMUNICATIONSINC NE COM 25470F302 10148 181077 SH Sole 181077 DJ-UBS Commodity Index Total R COM 06738C778 8647 195596 SH Sole 195596 DJ-UBS Livestock Subindex Tota COM 06739H743 201 7392 SH Sole 7392 DOUGLAS DYNAMICS INC COM 25960R105 1022 69068 SH Combined 01 69068 Du Pont E.I. De Nemours & Com COM 263534109 12016 239029 SH Sole 239029 Eaton Vance Corp COM 278265103 2142 73964 SH Sole 73964 ELDORADO GOLD CORP NEW COM 284902103 597 39195 SH Sole 39195 Emerson Electric Company COM 291011104 18177 376574 SH Sole 376574 ENERGY XXI BERMUDA LTD USD UN COM G10082140 513 14683 SH Sole 14683 ENPRO INDUSTRIES INC COM 29355X107 1581 43918 SH Combined 01 43918 Exxon Mobil Corp. COM 30231G102 11190 122360 SH Sole 122360 Fidelity National Financial In COM 31620R105 15062 704148 SH Combined 01 704148 Fidus Investment Corp. COM 316500107 1312 78542 SH Combined 01 78542 Fifth Street Finance Corp. COM 31678A103 1250 113844 SH Combined 01 113844 FIRST MAJESTIC SILVER CORP COM 32076V103 717 30941 SH Sole 30941 FORWARD AIR CORP COM 349853101 339 11152 SH Sole 11152 FQF TR QUANTSHARES U S MKT NE COM 351680707 408 17721 SH Sole 17721 FRANCO NEVADA CORP COM 351858105 856 14529 SH Sole 14529 FRANKLIN ELECTRIC COMPAN COM 353514102 1179 19498 SH Combined 01 19498 Franklin Street Properties Cor COM 35471R106 11549 1043241 SH Combined 01 1043241 Full Circle Capital Corp. COM 359671104 1442 177755 SH Combined 01 177755 GENERAC HOLDINGS INC COM 368736104 1243 54316 SH Combined 01 54316 General Dynamics Corp. COM 369550108 1910 28890 SH Sole 28890 General Mills, Inc. COM 370334104 2063 51764 SH Sole 51764 Gladstone Capital Corporation COM 376535100 4057 463699 SH Combined 01 463699 GLADSTONE COMMERCIAL CORP COM 376536108 1679 91932 SH Combined 01 91932 Gladstone Investment Corp. COM 376546107 1950 249317 SH Combined 01 249317 GlaxoSmithKline Plc (Adr 1:2) COM 37733W105 14675 317370 SH Sole 317370 GLOBAL X FUNDS GLOBAL X URANIU COM 37950E754 84 10980 SH Sole 10980 Golub Capital BDC Inc COM 38173M102 16365 1029250 SH Combined 01 1029250 Golub Capital Inc. - 144A COM 38173M995 22 22000 SH Combined 01 22000 GOOGLE INC CL A COM 38259P508 9953 13191 SH Sole 13191 Graco inc. COM 384109104 15859 315415 SH Combined 01 315415 HAEMONETICS CORP MASS COM 405024100 1090 13592 SH Combined 01 13592 HALLIBURTON COMPANY COM 406216101 5733 170159 SH Sole 170159 Hatteras Financial Corp. COM 41902R103 4406 156282 SH Combined 01 156282 HEARTLAND EXPRESS INC COM 422347104 880 65869 SH Combined 01 65869 Hercules Technology Growth Cap COM 427096508 6741 612236 SH Combined 01 612236 HITTITE MICROWAVE CORP COM 43365Y104 1070 19287 SH Combined 01 19287 HNI Corp. COM 404251100 13359 523673 SH Combined 01 523673 Home Depot Inc. COM 437076102 9271 153567 SH Sole 153567 Horizon Technology COM 44045A102 4540 280951 SH Combined 01 280951 Illinois Tool Works Inc. COM 452308109 10396 174803 SH Sole 174803 IMPERIAL OIL LTD NEW COM 453038408 550 11950 SH Sole 11950 INMET MINING CORP COM 457983104 405 8530 SH Sole 8530 International Business Machine COM 459200101 2373 11437 SH Sole 11437 ISHARES DOW JONES SELECT COM 464287168 258 4473 SH Sole 4473 ISHARES GOLD TRUST COM 464285105 8892 514869 SH Sole 514869 ISHARES IBOXX $INVES COM 464287242 16357 134323 SH Sole 134323 ISHARES INC MSCI BRAZIL FREE I COM 464286400 1410 26078 SH Sole 26078 ISHARES INC MSCI JAPAN INDEX COM 464286848 217 23638 SH Sole 23638 ISHARES S&P 500 GROWTH INDEX COM 464287309 508 6523 SH Sole 6523 ISHARES S&P 500 VALUE INDEX COM 464287408 523 7948 SH Sole 7948 ISHARES SILVER TRUST COM 46428Q109 1089 32531 SH Sole 32531 ISHARES TR DOW JO COM 464287697 1996 22300 SH Sole 22300 ISHARES TR DOW JO COM 464287788 5515 94585 SH Sole 94585 ISHARES TR DOW JO COM 464287721 10821 142620 SH Sole 142620 ISHARES TR RUSSEL COM 464287630 5450 73713 SH Sole 73713 ISHARES TRUST BARCLA COM 464288646 3559 33651 SH Sole 33651 ISHARES TRUST BARCLA COM 464287440 1562 14400 SH Sole 14400 ISHARES TRUST BARCLA COM 464288638 7020 62996 SH Sole 62996 ISHARES TRUST BARCLA COM 464288588 7845 71869 SH Sole 71869 ISHARES TRUST RUSSEL COM 464287648 5427 56766 SH Sole 56766 ISHARES TRUST 2013 S&P AMT FR COM 464289388 240 4729 SH Sole 4729 ISHARES TRUST 2014 S&P AMT FR COM 464289362 241 4664 SH Sole 4664 ISHARES TRUST 2015 S&P AMT FR COM 464289339 241 4530 SH Sole 4530 ISHARES TRUST 2016 S&P AMT FR COM 464289313 243 4521 SH Sole 4521 ISHARES TRUST 2017 S&P AMT FR COM 464289271 246 4412 SH Sole 4412 ISHARES TRUST IBOXX $ HIGH Y COM 464288513 20605 223244 SH Sole 223244 ISHARES TRUST UTILITIES SECTOR COM 46429B184 2957 56624 SH Sole 56624 Jonhson& Jonhson COM 478160104 21675 314536 SH Sole 314536 KCAP Financial Inc COM 48668E101 2537 274026 SH Combined 01 274026 Landauer Inc. COM 51476K103 11977 200551 SH Sole 200551 LANDSTAR SYSTEM INC COM 515098101 2750 58156 SH Combined 01 58156 LEUCADIA NATIONAL CORP COM 527288104 5921 260245 SH Sole 260245 Linear Technology Corp COM 535678106 13408 421361 SH Sole 421361 Lockheed Martin Corp COM 539830109 12789 136952 SH Sole 136952 LOWES COMPANIES INC COM 548661107 9974 329839 SH Sole 329839 M&T Bank Corp. COM 55261F104 2269 23839 SH Sole 23839 Main Street Capital Corp. COM 56035L104 1619 54858 SH Combined 01 54858 Manatuck Hill Mariner Offshore COM 562996983 533 3581 SH Sole 3581 MARATHON OIL CORP COM 565849106 2020 68307 SH Sole 68307 MARKEL CORP COM 570535104 11448 24969 SH Combined 01 24969 MARKET VECTORS ETF TR GOLD M COM 57060U100 248 4615 SH Sole 4615 Martin Marietta Materials Inc. COM 573284106 11538 139229 SH Sole 139229 MASTERCARD INC CLASS A COM 57636Q104 8490 18805 SH Sole 18805 MCDONALDS CORP COM 580135101 2184 23799 SH Sole 23799 MCG Capital Corp. COM 58047P107 2663 577629 SH Combined 01 577629 McGraw-Hill Companies, Inc COM 580645109 16231 297318 SH Sole 297318 MDU RESOURCES GROUP INC COM 552690109 2013 91353 SH Sole 91353 Medallion Financial Corp COM 583928106 3601 304937 SH Combined 01 304937 Medley Capital Corp. COM 58503F106 9254 657738 SH Combined 01 657738 Microsoft Corp. COM 594918104 21589 725449 SH Sole 725449 MOHAWK INDUSTRIES INC COM 608190104 397 4960 SH Sole 4960 MORNINGSTAR INC COM 617700109 1121 17892 SH Combined 01 17892 MUELLER INDUSTRIES INC COM 624756102 815 17925 SH Combined 01 17925 MURPHY OIL CORP COM 626717102 468 8717 SH Sole 8717 MVC CAPITAL INC COM 553829102 7957 621615 SH Combined 01 621615 NEW GOLD INC CANADA COM 644535106 617 50497 SH Sole 50497 NEW JERSEY RES CORP COM 646025106 2023 44256 SH Sole 44256 New Mountain Finance Corp. COM 647551100 4400 296865 SH Combined 01 296865 NEWMONT MINING CORP HLDGCOMPAN COM 651639106 825 14726 SH Sole 14726 NEXTERA ENERGY INC COM 65339F101 2386 33923 SH Sole 33923 NGP Capital Ressources Company COM 62912R107 2692 360918 SH Combined 01 360918 NIKE INC CLASS B COM 654106103 1883 19841 SH Sole 19841 NORDSTROM INC COM 655664100 2302 41719 SH Sole 41719 NOVARTIS AG SPONSO COM 66987V109 2184 35652 SH Sole 35652 NXP SEMICONDUCTORS N V COM N6596X109 1669 66719 SH Sole 66719 OCCIDENTAL PETROLEUM CORP COM 674599105 1869 21713 SH Sole 21713 PATTERSON COMPANIES INC COM 703395103 1463 42726 SH Combined 01 42726 Paychex, Inc. COM 704326107 13103 393607 SH Sole 393607 PEABODY ENERGY CORP COM 704549104 460 20629 SH Sole 20629 PennantPark Floating Rate Capi COM 70806A106 2790 220212 SH Combined 01 220212 PENNANTPARK INVESTMENT CORP COM 708062104 11471 1081194 SH Combined 01 1081194 Pepsico, Inc COM 713448108 18928 267462 SH Sole 267462 Pfizer Inc. COM 717081103 12579 506215 SH Sole 506215 PIEDMONT NATURAL GAS COMPAN COM 720186105 2081 64059 SH Sole 64059 PIONEER NATURAL RESOUR COM 723787107 438 4193 SH Sole 4193 PLAINS EXPLORATION & PRODUC COM 726505100 580 15479 SH Sole 15479 Plum Creek Timber Co. Inc. COM 729251108 13806 314921 SH Sole 314921 POTLATCH CORP NEW * COM 737630103 565 15109 SH Sole 15109 POWERSHARES EXCHANGE TRADED COM 73937B704 1645 47895 SH Sole 47895 POWERSHARES EXCHANGE TRADED COM 73937B886 2054 55945 SH Sole 55945 Praxair Inc. COM 74005P104 13470 129667 SH Sole 129667 PRICE T ROWE GROUP INC COM 74144T108 2213 34962 SH Sole 34962 Procter & Gamble Company COM 742718109 2175 31362 SH Sole 31362 Progressive Corp. COM 743315103 11721 565141 SH Sole 565141 Prospect Capital Corp COM 74348T102 239 20738 SH Combined 01 20738 Rayonier Inc. COM 754907103 14388 293577 SH Combined 01 293577 RITCHIE BROTHERS AUCTIO COM 767744105 1303 67761 SH Combined 01 67761 RLI Corp. COM 749607107 15371 230590 SH Combined 01 230590 ROYAL GOLD INC COM 780287108 827 8280 SH Sole 8280 RUBICON MINERALS CORP COM 780911103 578 154429 SH Sole 154429 S&P GSCI Crude Oil Total Retur COM 06738C786 553 24780 SH Sole 24780 SANDERSON FARMS INC COM 800013104 1027 23148 SH Combined 01 23148 Saratoga Investment Corporatio COM 80349A208 235 12837 SH Combined 01 12837 Schlumberger Ltd. COM 806857108 322 4450 SH Sole 4450 SCOTTS MIRACLE-GRO CO COM 810186106 930 21393 SH Combined 01 21393 SECTOR SPDR TR SBI CONSUM COM 81369Y407 5749 122877 SH Sole 122877 SECTOR SPDR TR SBI ENERGY COM 81369Y506 7739 105380 SH Sole 105380 SECTOR SPDR TR SBI INDUST COM 81369Y704 7365 201619 SH Sole 201619 SECTOR SPDR TR SHS BEN INT CO COM 81369Y308 4061 113361 SH Sole 113361 SECTOR SPDR TR SHS BEN INT HE COM 81369Y209 8445 210505 SH Sole 210505 SECTOR SPDR TR SHS BEN INT MA COM 81369Y100 1998 54285 SH Sole 54285 SIGMA ALDRICH CORP COM 826552101 10307 143204 SH Sole 143204 SILVER STANDARD RESOURCEINC COM 82823L106 544 33953 SH Sole 33953 SILVER WHEATON CORP COM 828336107 668 16825 SH Sole 16825 SIMPSON MANUF CO INC COM 829073105 1037 36221 SH Combined 01 36221 Solar Capital, LTD. COM 83413U100 6881 300228 SH Combined 01 300228 Solar Senior Capital Ltd. COM 83416M105 1330 74250 SH Combined 01 74250 SOURCE CAPITAL INC COM 836144105 1465 28130 SH Sole 28130 Southern Company COM 842587107 10725 232690 SH Sole 232690 SOUTHWESTERN ENERGY COMPAN COM 845467109 731 21022 SH Sole 21022 SPDR GOLD TRUST GOLD S COM 78463V107 826 4806 SH Sole 4806 SPDR S&P 500 ETF TRUST UNIT S COM 78462F103 432 3003 SH Sole 3003 SPDR SERIES TRUST BARCLA COM 78464A417 22863 568580 SH Combined 01 568580 SPDR SERIES TRUST BARCLA COM 78464A458 1845 75067 SH Sole 75067 SPDR SERIES TRUST BARCLA COM 78464A425 1582 64567 SH Sole 64567 SPDR SERIES TRUST BARCLA COM 78464A375 2744 78677 SH Sole 78677 STRYKER CORP COM 863667101 2520 45270 SH Sole 45270 SYSCO CORP COM 871829107 2090 66826 SH Sole 66826 TCP Capital Corp COM 87238Q103 3942 246986 SH Combined 01 246986 TECHNE CORP COM 878377100 1068 14840 SH Combined 01 14840 The Clorox Company COM 189054109 2079 28854 SH Sole 28854 THERMO FISHER SCIENT COM 883556102 9385 159525 SH Sole 159525 THL Credit COM 872438106 7973 568294 SH Combined 01 568294 TICC Capital Corp. COM 87244T109 1512 145356 SH Combined 01 145356 TJX COMPANIES INC NEW COM 872540109 7061 157636 SH Sole 157636 Triangle Capital Corp COM 895848109 6859 267294 SH Combined 01 267294 TYCO INTERNATIONAL LTD COM H89128104 242 4310 SH Sole 4310 ULTRA PETROLEUM CORP COM 903914109 456 20744 SH Sole 20744 UNITED TECHNOLOGIES CORP COM 913017109 2036 26011 SH Sole 26011 URANIUM ENERGY CORP COM 916896103 282 108092 SH Sole 108092 VANGUARD INTERMEDIATE TERM C COM 92206C870 6241 71186 SH Sole 71186 VANGUARD MSCI EMERGING MARKET COM 922042858 4114 98604 SH Sole 98604 VANGUARD REIT ETF COM 922908553 25086 386123 SH Sole 386123 VANGUARD SHORT TERM CORPBOND E COM 92206C409 1989 24765 SH Sole 24765 VARIAN MEDICAL SYSTEM COM 92220P105 333 5526 SH Sole 5526 VCA ANTECH INC COM 918194101 1959 99364 SH Combined 01 99364 Vectren Corp COM 92240G101 11710 409456 SH Sole 409456 W.W. Grainger, Inc. COM 384802104 2578 12372 SH Sole 12372 WAL-MART STORES INC COM 931142103 10722 145288 SH Sole 145288 WATERS CORP COM 941848103 8784 105407 SH Sole 105407 WELLS FARGO & CO NEW COM 949746101 8158 236250 SH Combined 01 236250 WEST PHARMACEUTICAL SERVIC COM 955306105 1220 22996 SH Combined 01 22996 WEYERHAEUSER COMPANY COM 962166104 850 32528 SH Sole 32528 WHITE MOUNTAINS INSURA COM G9618E107 350 681 SH Sole 681 WILEY JOHN & SONS CL A COM 968223206 1370 29812 SH Combined 01 29812 Willis Group Hldg COM G96666105 11698 316858 SH Sole 316858 YAMANA GOLD INC COM 98462Y100 818 42800 SH Sole 42800 ZEBRA TECH CORP CL A COM 989207105 1352 36070 SH Combined 01 36070