Confluence Investment Management LLC

Confluence is an SEC-registered investment adviser that provides portfolio management across a range of equity, asset allocation, balanced, alternative, and sector strategies, delivering services primarily through Financial Advisors and Financial Institutions via separately managed accounts (SMAs), model portfolios, UMA programs, and wrap account arrangements. Its client base spans individuals (including both non‑HNW and high‑net‑worth clients), corporations, pension and profit‑sharing plans, charitable organizations, foundations, endowments, and registered investment companies, and the firm sub-advises registered funds.

The firm’s investment process combines bottom‑up fundamental research for equity strategies with top‑down macro and cyclical analysis for asset allocation and fixed income, implemented by team‑based investment committees and a mix of individual securities and ETFs. Confluence offers discretionary and non‑discretionary implementations and, where appropriate to a strategy, employs derivatives (for example, covered‑call overlays in the IDEA Plus SMA) and quarterly tactical positioning across asset classes.

Compared with many peers, Confluence operates at institutional scale while maintaining extensive third‑party distribution: as of December 31, 2025 it managed or supervised about $12.5 billion (approximately $6.7 billion discretionary) and, with eight listed advisors and roughly 14,486 client relationships, has a high client‑to‑advisor ratio that reflects broad wrap/UMA participation and model‑delivery. The brochure also highlights less common features for firms in this category — active sub‑advisory roles for investment companies (including an actively managed ETF focused on BDCs and related sector strategies), explicit service to charitable and corporate clients and pension plans, and the use of derivatives within SMAs — together with documented policies on soft dollars, proxy voting, and service‑provider oversight to support its multi‑channel business model.