0001442055-13-000001.txt : 20130123 0001442055-13-000001.hdr.sgml : 20130123 20130123100618 ACCESSION NUMBER: 0001442055-13-000001 CONFORMED SUBMISSION TYPE: 13F-HR PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20121231 FILED AS OF DATE: 20130123 DATE AS OF CHANGE: 20130123 EFFECTIVENESS DATE: 20130123 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: 13541757 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 cimformdec12.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: December 31, 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 January 23, 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: 235 Form 13F Information Table Value Total: $1,189,196 (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 Admiral 921921300 218 4310 SH Sole 4310.335 2013 S&P AMT-Free Municipal ET COM 464289388 305 6017 SH Sole 6017 2014 S&P AMT-Free Municipal ET COM 464289362 307 5931 SH Sole 5931 2015 S&P AMT-Free Municipal ET COM 464289339 306 5753 SH Sole 5753 2016 S&P AMT-Free Municipal ET COM 464289313 308 5743 SH Sole 5743 2017 S&P AMT-Free Municipal ET COM 464289271 309 5591 SH Sole 5591 3M Company COM 88579Y101 15708 169181 SH Sole 169181 Affiliated Managers Group Inc. COM 008252108 1370 10527 SH Combined 01 10527 Air Products & Chemicals Inc. COM 009158106 2011 23932 SH Sole 23932 Allied Nevada Gold Corp. COM 019344100 473 15709 SH Sole 15709 American Capital Ltd. COM 02503Y103 1322 110170 SH Combined 01 110170 American Express Company COM 025816109 9800 170490 SH Sole 170490 Analog Devices, Inc. COM 032654105 2323 55220 SH Sole 55220 Anglo American Plc ADR COM 03485P201 418 26806 SH Sole 26806 Annaly Capital Management Inc. COM 035710409 12417 884388 SH Combined 01 884388 Apollo Investment Corp. COM 03761U106 4510 539448 SH Combined 01 539448 Ares Capital Corp. COM 04010L103 31086 1776367 SH Combined 01 1776367 Ares Commercial Real Estate COM 04013V108 164 10000 SH Combined 01 10000 Automatic Data Processing, Inc COM 053015103 2214 38886 SH Sole 38886 Barclays 1-3 Year Credit Bond COM 464288646 3563 33776 SH Sole 33776 Barclays 7-10 Year Treasury - COM 464287440 1562 14531 SH Sole 14531 Barclays Capital Intermediate COM 78464A375 2621 75263 SH Sole 75263 Barclays Capital High Yield Bo COM 78464A417 22030 541134 SH Combined 01 541134 Barclays Intermediate Credit B COM 464288638 6301 56621 SH Sole 56621 Barclays MBS Bond - iShares COM 464288588 7656 70899 SH Sole 70899 Beam Inc. COM 073730103 7034 115142 SH Sole 115142 Becton, Dickinson and Company COM 075887109 2056 26300 SH Sole 26300 Bed Bath & Beyond Inc COM 075896100 7519 134480 SH Sole 134480 Berkshire Hathaway Inc. - B COM 084670702 7916 88245 SH Sole 88245 Berkshire Hathaway Inc. - Clas COM 084670108 1072 8 SH Combined 01 8 BHP Billiton Limited - ADR COM 088606108 568 7249 SH Sole 7249 BlackRock Kelso Capital Corp. COM 092533108 3424 340393 SH Combined 01 340393 BP PLC (Adr 1:6) COM 055622104 525 12611 SH Sole 12611 Broadridge Financial Solutions COM 11133T103 13201 576978 SH Sole 576978 Brown-Forman Corp. - B COM 115637209 2455 38816 SH Sole 38816 Brown & Brown Inc. COM 115236101 3628 142506 SH Combined 01 142506 BulletShares 2017 Corp Bond - COM 18383M548 2294 100513 SH Sole 100513 C & J Energy Services Inc COM 12467B304 1089 50777 SH Combined 01 50777 Cameco Corp. COM 13321L108 503 25518 SH Sole 25518 Chevron Corp. COM 166764100 23323 215671 SH Sole 215671 Cimarex Energy Co. COM 171798101 757 13107 SH Sole 13107 Colgate-Palmolive Co. COM 194162103 2344 22426 SH Sole 22426 Commerce Bancshares, Inc. COM 200525103 2056 58653 SH Sole 58653 Compass Diversified Holdings COM 20451Q104 3184 216442 SH Combined 01 216442 ConocoPhillips COM 20825C104 2760 47595 SH Sole 47595 Consumer Discret Select Sector COM 81369Y407 5842 123137 SH Sole 123137 Consumer Staples Select Sector COM 81369Y308 3951 113210 SH Sole 113210 Contango Oil & Gas Company COM 21075N204 425 10024 SH Sole 10024 Cubic Corp COM 229669106 1018 21231 SH Combined 01 21231 Cullen Frost Bankers, Inc. COM 229899109 1983 36545 SH Sole 36545 CYS Investments Inc COM 12673A108 7205 610040 SH Combined 01 610040 Deckers Outdoor Corp. COM 243537107 2496 61975 SH Combined 01 61975 Deltic Timber Corp. COM 247850100 276 3906 SH Sole 3906 Diageo (Adr 1:4) COM 25243Q205 19978 171368 SH Sole 171368 Discovery Communications, Inc. COM 25470F302 9659 165114 SH Sole 165114 DJ-UBS Commodity Index Total R COM 06738C778 7929 191748 SH Sole 191748 Douglas Dynamics, Inc. COM 25960R105 977 67916 SH Combined 01 67916 Dow Jones Select Dividend Inde COM 464287168 226 3957 SH Sole 3957 Dow Jones US Financial Sector COM 464287788 7248 119401 SH Sole 119401 Dow Jones US Technology - iSha COM 464287721 7944 112336 SH Sole 112336 Dow Jones US Utilities - iShar COM 464287697 1935 22411 SH Sole 22411 Du Pont E.I. De Nemours & Com COM 263534109 11925 265126 SH Sole 265126 Eldorado Gold Corp. COM 284902103 515 39984 SH Sole 39984 Emerson Electric Company COM 291011104 21027 397036 SH Sole 397036 Energy Select Sector - SPDR COM 81369Y506 7776 108879 SH Sole 108879 EnPro Industries, Inc. COM 29355X107 1799 43992 SH Combined 01 43992 Exxon Mobil Corp. COM 30231G102 10424 120437 SH Sole 120437 Fidelity National Financial In COM 31620R105 14925 633738 SH Combined 01 633738 Fidus Investment Corp. COM 316500107 1350 82076 SH Combined 01 82076 Fifth Street Finance Corp. COM 31678A103 1051 100883 SH Combined 01 100883 First Majestic Silver Corp. COM 32076V103 617 30542 SH Sole 30542 First Quantum Minerals Ltd. COM 335934105 521 23648 SH Sole 23648 Forward Air Corp. COM 349853101 392 11211 SH Sole 11211 Franco-Nevada Corp. COM 351858105 814 14239 SH Sole 14239 Franklin Electric Co. Inc. COM 353514102 1068 17219 SH Combined 01 17219 Franklin Street Properties Cor COM 35471R106 15787 1282454 SH Combined 01 1282454 Full Circle Capital Corp. COM 359671104 1500 201825 SH Combined 01 201825 Generac Holdings Inc. COM 368736104 2127 62006 SH Combined 01 62006 General Dynamics Corp. COM 369550108 2055 29664 SH Sole 29664 General Mills, Inc. COM 370334104 2180 53936 SH Sole 53936 Gladstone Capital Corporation COM 376535100 3980 487755 SH Combined 01 487755 Gladstone Commercial Corp. COM 376536108 1250 69622 SH Combined 01 69622 Gladstone Investment Corp. COM 376546107 1955 280891 SH Combined 01 280891 GlaxoSmithKline Plc (Adr 1:2) COM 37733W105 15124 347916 SH Sole 347916 Gold Shares - SPDR COM 78463V107 815 5032 SH Sole 5032 Gold Trust - iShares COM 464285105 8385 515070 SH Sole 515070 Golub Capital BDC Inc COM 38173M102 18119 1133866 SH Combined 01 1133866 Golub Capital Inc. - 144A COM 38173M995 22 22000 SH Combined 01 22000 Google Inc. - A COM 38259P508 9066 12817 SH Sole 12817 Graco inc. COM 384109104 15876 308328 SH Combined 01 308328 Haemonetics Corporation COM 405024100 1018 24934 SH Combined 01 24934 Halliburton Co. COM 406216101 5195 149753 SH Sole 149753 Hatteras Financial Corp. COM 41902R103 4250 171282 SH Combined 01 171282 Health Care Select Sector - SP COM 81369Y209 8320 208623 SH Sole 208623 Heartland Express, Inc COM 422347104 793 60641 SH Combined 01 60641 Hercules Technology Growth Cap COM 427096508 6704 602351 SH Combined 01 602351 High Yield Corporate Bond Fund COM 464288513 20626 220957 SH Sole 220957 Hittite Microwave Corp COM 43365Y104 1087 17521 SH Combined 01 17521 HNI Corp. COM 404251100 15516 516163 SH Combined 01 516163 Home Depot Inc. COM 437076102 9283 150085 SH Sole 150085 Horizon Technology COM 44045A102 4792 321823 SH Combined 01 321823 iBoxx $ Investment Grade Corp. COM 464287242 15302 126475 SH Sole 126475 Illinois Tool Works Inc. COM 452308109 9798 161119 SH Sole 161119 Industrial Select Sector - SPD COM 81369Y704 7672 202438 SH Sole 202438 Inmet Mining Corp. COM 457983104 634 8495 SH Sole 8495 Interm-Term Corp Bond Index ET COM 92206C870 5980 68222 SH Sole 68222 International Business Machine COM 459200101 2228 11632 SH Sole 11632 iShares MSCI Brazil Index COM 464286400 1543 27581 SH Sole 27581 iShares MSCI Japan Index COM 464286848 203 20868 SH Sole 20868 John Wiley & Sons Inc. - A COM 968223206 1141 29313 SH Combined 01 29313 Jonhson& Jonhson COM 478160104 23063 329006 SH Sole 329006 KCAP Financial Inc COM 48668E101 2734 297489 SH Combined 01 297489 Landauer Inc. COM 51476K103 13621 222525 SH Sole 222525 Landstar System Inc. COM 515098101 3100 59090 SH Combined 01 59090 Leucadia National Corp. COM 527288104 5583 234680 SH Sole 234680 Linear Technology Corp COM 535678106 15504 452001 SH Sole 452001 Lockheed Martin Corp COM 539830109 14412 156163 SH Sole 156163 Lowe's Companies Inc. COM 548661107 10465 294632 SH Sole 294632 M&T Bank Corp. COM 55261F104 2353 23896 SH Sole 23896 Main Street Capital Corp. COM 56035L104 2168 71055 SH Combined 01 71055 Manatuck Hill Mariner Offshore COM 562996983 495 3380 SH Sole 3380 Marathon Oil Corp. COM 565849106 2133 69582 SH Sole 69582 Markel Corp. COM 570535104 8795 20291 SH Combined 01 20291 Market Vectors Gold Miners - E COM 57060U100 216 4664 SH Sole 4664 Martin Marietta Materials Inc. COM 573284106 13952 147985 SH Sole 147985 Mastercard Inc. - A COM 57636Q104 8306 16906 SH Sole 16906 Materials Select Sector - SPDR COM 81369Y100 2041 54374 SH Sole 54374 McDonald's Corp. COM 580135101 2210 25051 SH Sole 25051 MCG Capital Corp. COM 58047P107 3090 671803 SH Combined 01 671803 McGraw-Hill Companies, Inc COM 580645109 17341 317188 SH Sole 317188 MDU Resources Group Inc. COM 552690109 2001 94225 SH Sole 94225 Medallion Financial Corp COM 583928106 3616 308042 SH Combined 01 308042 Medley Capital Corp. COM 58503F106 10540 723928 SH Combined 01 723928 Mesabi Trust COM 590672101 522 20516 SH Sole 20516 Microsoft Corp. COM 594918104 20546 769251 SH Sole 769251 Mohawk Industries Inc. COM 608190104 440 4864 SH Sole 4864 Morningstar Inc. COM 617700109 1004 15987 SH Combined 01 15987 Mueller Industries Inc. COM 624756102 764 15270 SH Combined 01 15270 Murphy Oil Corp. COM 626717102 533 8945 SH Sole 8945 MVC Capital, Inc. COM 553829102 6178 508478 SH Combined 01 508478 New Gold, Inc. COM 644535106 563 51072 SH Sole 51072 New Jersey Resources Corp. COM 646025106 1815 45806 SH Sole 45806 New Mountain Finance Corp. COM 647551100 5562 373260 SH Combined 01 373260 NextEra Energy, Inc. COM 65339F101 2415 34898 SH Sole 34898 NGP Capital Ressources Company COM 62912R107 2895 400919 SH Combined 01 400919 Nike Inc. - B COM 654106103 2125 41174 SH Sole 41174 Nordstrom Inc. COM 655664100 2263 42291 SH Sole 42291 Novartis AG - ADR COM 66987V109 2340 36963 SH Sole 36963 Nuveen Barclays Capital Muni. COM 78464A458 1997 82391 SH Sole 82391 Nuveen Barclays Capital Short COM 78464A425 1702 70015 SH Sole 70015 NXP Semiconductors COM N6596X109 1819 69110 SH Sole 69110 Occidental Petroleum Corp COM 674599105 1751 22857 SH Sole 22857 OFS Capital Corp. COM 67103B100 1576 115113 SH Combined 01 115113 Patterson Companies, Inc. COM 703395103 1444 42182 SH Combined 01 42182 Paychex, Inc. COM 704326107 12069 388069 SH Sole 388069 Peabody Energy Corp. COM 704549104 555 20852 SH Sole 20852 PennantPark Floating Rate Capi COM 70806A106 3249 255997 SH Combined 01 255997 PennantPark Investment Corp. COM 708062104 12742 1158871 SH Combined 01 1158871 Pepsico, Inc COM 713448108 22034 321995 SH Sole 321995 Pfizer Inc. COM 717081103 12514 498984 SH Sole 498984 Physical Palladium Shares - ET COM 26923a106 507 7329 SH Sole 7329 Piedmont Natural Gas Co. Inc. COM 720186105 2051 65492 SH Sole 65492 Pioneer Natural Resources Co. COM 723787107 463 4341 SH Sole 4341 Plum Creek Timber Co. Inc. COM 729251108 14786 333251 SH Sole 333251 Potlatch Corp. COM 737630103 595 15202 SH Sole 15202 PowerShares Agriculture Double COM 25154H566 147 11249 SH Sole 11249 Praxair Inc. COM 74005P104 14936 136469 SH Sole 136469 Procter & Gamble Company COM 742718109 2239 32981 SH Sole 32981 Progressive Corp. COM 743315103 13109 621299 SH Sole 621299 Prospect Capital Corp COM 74348T102 492 45244 SH Combined 01 45244 QuantShares US Market Neut Ant COM 351680707 438 20167 SH Sole 20167 Rayonier Inc. COM 754907103 14773 285027 SH Combined 01 285027 REIT Index - Vanguard COM 922908553 28430 432062 SH Sole 432062 Ritchie Brothers Auctioneers I COM 767744105 1402 67135 SH Combined 01 67135 RLI Corp. COM 749607107 15736 243363 SH Combined 01 243363 Royal Gold, Inc. COM 780287108 677 8319 SH Sole 8319 Rubicon Minerals Corp. COM 780911103 409 160374 SH Sole 160374 Russell 1000 Value Index - iSh COM 464287598 200 2747 SH Sole 2747 Russell 2000 Growth Index - iS COM 464287648 5365 56292 SH Sole 56292 Russell 2000 Value Index - iSh COM 464287630 5605 74227 SH Sole 74227 S&P 500 - SPDR COM 78462F103 447 3136 SH Sole 3136 S&P 500 Growth Index - iShares COM 464287309 524 6912 SH Sole 6912 S&P 500 Value Index - iShares COM 464287408 496 7467 SH Sole 7467 S&P GSCI Crude Oil Total Retur COM 06738C786 203 9330 SH Sole 9330 S&P SmallCap Energy - PowerSha COM 73937B704 1954 58091 SH Sole 58091 S&P SmallCap Health Care - Pow COM 73937B886 2009 56844 SH Sole 56844 Sanderson Farms, Inc. COM 800013104 1030 21655 SH Combined 01 21655 Saratoga Investment Corporatio COM 80349A208 194 12837 SH Combined 01 12837 Short-Term Corp Bond Index ETF COM 92206C409 1908 23754 SH Sole 23754 Sigma-Aldrich Corp COM 826552101 10516 142920 SH Sole 142920 Silver Standard Resources Inc. COM 82823L106 519 34872 SH Sole 34872 Silver Trust - iShares COM 46428Q109 984 33496 SH Sole 33496 Silver Wheaton Corp. COM 828336107 614 17019 SH Sole 17019 Simpson Manufacturing Co. COM 829073105 1095 33398 SH Combined 01 33398 Solar Capital, LTD. COM 83413U100 8159 341222 SH Combined 01 341222 Solar Senior Capital Ltd. COM 83416M105 1817 97365 SH Combined 01 97365 Source Capital, Inc. COM 836144105 1435 27474 SH Sole 27474 Southern Company COM 842587107 15511 362333 SH Sole 362333 Southern Copper Corp. COM 84265V105 496 13112 SH Sole 13112 Southwestern Energy Co. COM 845467109 722 21616 SH Sole 21616 Stellus Capital Investment COM 858568108 2137 130491 SH Combined 01 130491 Stryker Corp. COM 863667101 2561 46722 SH Sole 46722 Sysco Corp. COM 871829107 2148 67832 SH Sole 67832 T. Rowe Price Group, Inc. COM 74144T108 2306 35418 SH Sole 35418 TCP Capital Corp COM 87238Q103 3776 256170 SH Combined 01 256170 Techne Corp. COM 878377100 1015 14854 SH Combined 01 14854 Teck Cominco (US Listing) COM 878742204 512 14080 SH Sole 14080 The Clorox Company COM 189054109 2151 29374 SH Sole 29374 The Coca-Cola Company COM 191216100 223 6149 SH Sole 6149 The Scotts Miracle-Gro Company COM 810186106 869 19721 SH Combined 01 19721 Thermo Fisher Scientific, Inc. COM 883556102 9687 151880 SH Sole 151880 THL Credit COM 872438106 9207 622527 SH Combined 01 622527 TICC Capital Corp. COM 87244T109 1788 176683 SH Combined 01 176683 TJX Companies COM 872540109 7106 167402 SH Sole 167402 Triangle Capital Corp COM 895848109 7122 279421 SH Combined 01 279421 United Technologies Corp. COM 913017109 2201 26838 SH Sole 26838 Uranium Energy Corp. COM 916896103 284 110846 SH Sole 110846 Utilities Sector Bond - iShare COM 46429B184 2967 57495 SH Sole 57495 Utilities Select Sector - SPDR COM 81369Y886 292 8376 SH Sole 8376 Vale SA (Adr) COM 91912E105 546 26028 SH Sole 26028 Vanguard MSCI Emerging Markets COM 922042858 4642 104246 SH Sole 104246 Varian Medical Systems Inc. COM 92220P105 390 5550 SH Sole 5550 VCA Antech Inc. COM 918194101 2135 101424 SH Combined 01 101424 Vectren Corp COM 92240G101 13338 453663 SH Sole 453663 W.R. Berkley Corp COM 084423102 9857 261185 SH Combined 01 261185 W.W. Grainger, Inc. COM 384802104 2512 12415 SH Sole 12415 Wal-Mart Stores Inc. COM 931142103 9286 136104 SH Sole 136104 Walter Energy, Inc. COM 93317Q105 486 13544 SH Sole 13544 Waters Corp. COM 941848103 9041 103771 SH Sole 103771 Wells Fargo & Company COM 949746101 7762 227086 SH Combined 01 227086 West Pharmaceutical Services, COM 955306105 1173 21422 SH Combined 01 21422 Weyerhaeuser Co. COM 962166104 907 32596 SH Sole 32596 Willis Group Hldg COM G96666105 11839 353090 SH Sole 353090 Yamana Gold, Inc. COM 98462Y100 729 42372 SH Sole 42372 Zebra Technologies Corp. COM 989207105 1416 36014 SH Combined 01 36014