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Confluence Investment Management Review

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Confluence Investment Management LLC

Confluence Investment Management LLC

Located in St. Louis, Missouri, Confluence Investment Management, LLC is a registered investment advisor (RIA) with more than $5 billion in assets under management (AUM). Its team of financial advisors includes 10 chartered financial analysts (CFAs) with experience providing advice on asset classes across the investment universe. 

Confluence Investment Management Background  

Confluence launched in 2007 and registered with the Securities and Exchange Commission (SEC) in 2008. Former investment management and banking professionals from A.G. Edwards & Sons and its subsidiary Gallatin Asset Management, Inc., laid the firm’s roots. Today, it stands as a 100% employee-owned entity. 

In 2018, Confluence acquired the assets of Gratry & Company, LLC. Investment professionals from that firm currently manage Confluence’s international and global equity products. 

What Types of Clients Does Confluence Investment Management Accept?

Confluence provides its services to a variety of clients, including: 

  • Individuals (both high net worth and not)
  • Corporations
  • Pension and profit-sharing plans
  • Taft-Hartley plans
  • Other investment advisors (on behalf of their clients)
  • Charitable institutions 
  • Municipalities
  • Registered investment companies

In addition, the firm states it may soon extend portfolio management services to investment vehicles it may sponsor. 

Confluence Investment Management Minimum Account Size

Confluence generally requires a minimum investment of $100,000 for most of its accounts. However, these minimums may be larger or smaller for specific investment strategies and client types. We detail these circumstances below: 

Asset allocation strategy: $50,000

Balanced equity strategy: $200,000

Private wealth accounts: $500,000 

Institutional accounts: $5 million 

Services Offered by Confluence Investment Management

Confluence offers discretionary and nondiscretionary portfolio management and advisory services. It primarily does this through separately managed accounts. Strategies cover equities, international equities and alternative investments. 

Confluence Investment Management Investing Philosophy

Independent fundamental research is at the base of Confluence’s investing philosophy. When making investment decisions, the firm takes into account the big picture - macroeconomics, the performance of different market cycles and geopolitical analysis among other factors - as well as company fundamentals. The practice says that “this discipline enables the investment committees to identify broad risks, while taking advantage of specific opportunities.”

The firm’s core investment solutions feature: 

Equity Strategies - aim for above-average returns by investing in stocks of various high-performing companies from small-cap firms to large-cap ones. 

Balanced Strategies -  provide exposure to equities and fixed income. Clients may decide on specific proportions. These accounts primarily utilize fixed-income exchange-traded funds (ETFs) and equities. 

Asset Allocation Strategies - invest in a variety of securities such as stocks, bonds, exchange-traded funds (ETFs) and commodities, depending on the client’s profile.  

International Strategies - invest in high-performing companies across different countries and industry sectors while aiming to mitigate risk. 

Alternative Investment Strategies: invest in different alternative investment classes, which the Confluence team believes pose the potential to generate risk-adjusted returns. 

Fees Under Confluence Investment Management

Fees charged by Confluence depend on various factors such as client type, investment strategy and account size. Below, we provide the firm’s current fee schedule as it applies to advisor-based discretionary portfolio management services for individual clients. We break these fees down by investment strategy. 

Asset Allocation, Fixed-income and Managed ETF

Account Assets Annual Fee
First $500,000  0.40% 
Next $500,000 0.35% 
More than $1,000,000  0.30% 

All Cap Value, Balanced, Equity Income Global Hard Assets, Multi-Asset Income, Increasing Dividend Equity Account (IDEA), Large Cap Value, International Developed, International Growth, Global Large Cap, Global Developed, Global Growth

Account Assets Annual Fee
First $500,000  0.60% 
Next $500,000 0.55% 
More than $1,000,000  0.50% 

IDEA Plus, Small Cap Value,
Value Opportunities, Specialty Finance, BDC, Emerging
Markets, International Opportunities

Account Assets Annual Fee
First $500,000  1.00% 
Next $500,000 0.90% 
More than $1,000,000  0.75% 


What to Watch Out For

While Confluence offers a diverse range of portfolio management strategies, it lacks personal financial planning services. If you are seeking individual financial consulting around topics like estate planning or managing retirement accounts such as 401(k) plans and individual retirement accounts (IRAs), this firm is not likely to be a good fit.

Disclosures

Confluence had no legal or disciplinary matters in the past 10 years to report in its most recent filings with the Securities and Exchange Commission (SEC). For the latest details, you can find the firm’s Form ADV and firm brochure on the SEC’s Investment Adviser Public Disclosure website. 

Opening an Account With Confluence Investment Management

To inquire about becoming a potential client, call (314) 743-5090 or send an email to  info@confluenceim.com. 

Where Is Confluence Investment Management Located?

Confluence is located at 20 Allen Avenue, Suite 300, St. Louis, Missouri 63119.

Finding the Right Financial Advisor

  • If you’d like financial planning advice in addition to portfolio management services, we can help you find a financial advisor that can meet those needs. Use our financial advisor matching tool. Simply answer a few questions about your current situation and the platform recommends up to three local advisors. 
  • Make sure you ask potential advisors whether they have any certifications. Not all advisors in the field have certifications, but the ones that do are held to specific standards by the boards that issue these designations. A certified financial planner (CFP), for example, has a fiduciary duty to provide financial planning advice in the best interest of the client. 
  • For more tips, check out our report on the top five questions to ask when choosing a financial advisor

All information was accurate as of the writing of this article.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research