The Large Cap Value strategy is focused on seasoned businesses that generally have capitalizations above $10 billion. The portfolio typically comprises 23-25 holdings and is expected to result in low to moderate turnover. Large Cap Value is suitable for clients whose primary objective is capital appreciation and whose secondary objective is dividend income.

• Large Cap Value Fact Sheet
• Large Cap Value Performance Thru 6-30-22
• Large Cap Value Quarterly Commentary

The Small Cap Value strategy is focused on smaller businesses that generally have capitalizations below $3 billion at the time of purchase. The portfolio typically comprises 30-35 holdings and is expected to result in low to moderate turnover. Because small cap stocks are generally more volatile than large cap stocks, Small Cap Value is suitable for clients whose primary objective is capital appreciation.

• Small Cap Value Fact Sheet
• Small Cap Value Performance Thru 6-30-22
• Small Cap Value Quarterly Commentary

The All Cap Value strategy is focused on businesses that range in market capitalization. The portfolio typically comprises 30-35 holdings and is expected to result in low to moderate turnover. All Cap Value is suitable for clients whose primary objective is capital appreciation and whose secondary objective is dividend income.

• All Cap Value Fact Sheet
• All Cap Value Performance Thru 6-30-22
• All Cap Value Quarterly Commentary

The Equity Income strategy is focused on businesses that range in market capitalization and collectively generate an above-average stream of dividend income, while also providing capital appreciation potential. The research process seeks to identify businesses that have the ability to either pay a high level of dividend income or grow the dividend stream over time. The portfolio typically comprises 30-35 holdings and is expected to result in low to moderate turnover. Equity Income is suitable for clients seeking total return from dividend income and capital appreciation.

• Equity Income Fact Sheet
• Equity Income Performance Thru 6-30-22
• Equity Income Quarterly Commentary

Value Opportunities is a concentrated portfolio of businesses that range in market capitalization and have near-term (within 18 months) catalysts in which to unlock the value. The portfolio may have concentrations in both individual holdings and/or industries. It typically comprises 8-12 holdings and is expected to result in higher turnover of 75-100%. Value Opportunities is suitable for clients seeking an aggressive approach to generating capital appreciation.

Strategy closed to new accounts but may be available if an exception is granted by Confluence; clients can continue to add deposits into existing accounts.

• Value Opportunities Fact Sheet
• Value Opportunities Performance Thru 6-30-22
• Value Opportunities Quarterly Commentary

The Increasing Dividend Equity Account (IDEA) strategy is focused on high-quality companies with long track records of distributing earnings to shareholders through dividends. The portfolio is selected from a universe of stocks meeting minimum criteria of paying and/or increasing dividends over the last 10 years and have market capitalizations greater than $1 billion. Also of importance is the anticipated dividend growth rate of the aggregate portfolio. The portfolio has approximately 49 holdings and is expected to result in low to moderate turnover. IDEA is suitable for clients primarily seeking capital appreciation, with total return from dividend income as a secondary objective.

• Increasing Dividend Equity Account Fact Sheet
• Increasing Dividend Equity Account Performance Thru 6-30-22
• Increasing Dividend Equity Account Quarterly Commentary
• A Good IDEA for the Long Run: The Benefits of Increasing Dividends (December 2021)

Increasing Dividend Equity Account (IDEA) Plus is a dividend-based equity strategy combined with a covered call option strategy on the S&P 500 Index. Approximately 75% of the portfolio is made up of the IDEA portfolio which invests in high-quality companies that have paid and/or increased dividends over the last 10 years. The remaining 25% consists of an ETF position in the S&P 500 Index with a corresponding covered call position. IDEA Plus is suitable for clients seeking total return with lowered risk and volatility than the broader equity market, along with capital appreciation.

• Increasing Dividend Equity Account (IDEA) Plus Fact Sheet
• IDEA Plus Performance Thru 6-30-22

The professionals at Confluence were among the first to understand how to utilize fixed income exchange-traded funds (ETFs) in separately managed accounts. Within the Fixed Income strategy (Taxable or Tax-Exempt), we strive to deliver the income and lower volatility traditionally available from a diversified bond portfolio. Fixed income ETFs are available in a wide range of maturities across corporate, agency and treasury sectors and over time we will adjust the allocation across these sectors. We may also adjust the average maturity depending upon our interest rate outlook. The allocations will incorporate our viewpoints regarding Fed policy, the shape of the yield curve, relative yields (known as spreads), default rates and other market factors.

• Fixed Income Quarterly (September 2022)

• Fixed Income Taxable Fact Sheet
• Fixed Income Taxable Performance Thru 6-30-22

• Fixed Income Tax-Exempt Fact Sheet
• Fixed Income Tax-Exempt Performance Thru 6-30-22

The Confluence Balanced Accounts are an efficient way to combine equity and fixed income exposure in a single account, while providing diversification and lower volatility. Clients indicate the proportion of their portfolio that they would like to allocate to fixed income ETFs using our Fixed Income strategy (Taxable or Tax-Exempt) and paired with one of our Value Equity strategies. Equity-to-fixed income ratios are available in increments of 10%, ranging from 80/20 to 30/70. Balanced Account management accommodates systematic deposits or withdrawals and includes automatic rebalancing.

• Confluence Balanced Accounts: Pursuing Attractive Returns with Less Risk

• Example: Balanced Large Cap Value Overview

• Example: Balanced Equity Income Overview

The International Developed strategy invests in large cap, growth-oriented companies in developed markets only (excluding U.S.). The portfolio’s primary objective is long-term capital appreciation.

• International Developed Fact Sheet
• International Developed Performance Thru 6-30-22
• International Developed Quarterly Commentary

The International Growth strategy invests in large cap, growth-oriented companies in both developed (excluding U.S.) and emerging markets. Direct exposure to emerging markets is variable and limited to no more than 25% of the portfolio’s total value. The portfolio’s primary objective is long-term capital appreciation.

• International Growth Fact Sheet
• International Growth Performance Thru 6-30-22
• International Growth Quarterly Commentary

The Emerging Markets strategy invests in large cap, growth-oriented companies in the emerging markets around the world. The portfolio’s primary objective is long-term capital appreciation.

• Emerging Markets Fact Sheet
• Emerging Markets Performance Thru 6-30-22
• Emerging Markets Quarterly Commentary

The Income strategy is primarily focused on reliable income and is appropriate as a complementary strategy for investors in the distribution phase for their investments. The majority of its allocation is in fixed-income asset classes with the core being a ladder of target maturity ETFs, with each of the next 10 years representing a fixed percentage of assets. A small portion of the portfolio may include real estate, equities, and commodities to contribute growth potential and diversification benefits. The profile is similar to a diversified bond portfolio with a small portion allocated to equities, when appropriate.

• Income Taxable Fact Sheet
• Income Taxable Performance Thru 6-30-22

The Income with Growth strategy is oriented toward reliable income, moderate volatility, long-term growth and principal preservation. Although the portfolio typically has the majority of its allocation in fixed-income asset classes, a smaller portion may include real estate, equities, and commodities. These asset classes contribute growth potential along with diversification benefits. The profile is similar to that of a diversified bond portfolio alongside a smaller proportion of equities.

• Income Taxable with Growth Fact Sheet
• Income Taxable with Growth Performance Thru 6-30-22

• Income Tax-Exempt with Growth Fact Sheet
• Income Tax-Exempt with Growth Performance Thru 6-30-22

The Growth & Income strategy combines objectives of growth and income, with more emphasis on growth. The growth allocation may include equity asset classes ranging from small cap to large cap, with both domestic and international equities. Commodities may be utilized for total return as well as diversification benefits. Fixed-income and real estate allocations will normally form the foundation to pursue income objectives. The profile is similar to a portfolio with a blend of stocks and bonds.

• Growth & Income Taxable Fact Sheet
• Growth & Income Taxable Performance Thru 6-30-22

• Growth & Income Tax-Exempt Fact Sheet
• Growth & Income Tax-Exempt Performance Thru 6-30-22

• Growth & Income Alpha Fact Sheet
• Growth & Income Alpha Performance Thru 6-30-22

The Growth strategy is positioned to pursue capital appreciation.  The allocation may include equity asset classes ranging from small cap to large cap.  International allocations may include both developed and emerging markets, while commodities, real estate, and fixed income may be utilized for total return and diversification.  The profile is similar to that of a diversified all-equity portfolio.

• Growth Fact Sheet
• Growth Performance Thru 6-30-22

The Aggressive Growth strategy is focused on capital appreciation and is designed for investors that can tolerate higher levels of risk. The allocation may include domestic and international equity asset classes, as well as commodities, real estate, and occasionally fixed income investments. At times, the portfolio may be more concentrated in asset classes with higher return potential, including those with higher levels of volatility. The profile is similar to that of an aggressively positioned, all-equity portfolio.

• Aggressive Growth Fact Sheet
• Aggressive Growth Performance Thru 6-30-22

The Global Hard Assets strategy is focused on investments in hard assets which we define as tangible commodities, such as a gold bar, a barrel of oil or a ton of coal. The portfolio primarily includes common stocks of companies in the hard asset sector which are directly responsible for mining, extracting or producing the hard assets. In addition, the portfolio will typically hold various hard asset ETFs or ETNs, thus giving the portfolio exposure to actual commodities. The portfolio typically comprises 35-55 holdings and is expected to result in higher turnover of 50-80%. Global Hard Assets is suitable for clients whose primary objective is capital appreciation.

• Global Hard Assets Fact Sheet
• Global Hard Assets Performance Thru 6-30-22
• The Case for Hard Assets: An Update (September 2020)

The Specialty Finance BDC strategy is focused on a niche of the financial sector known as business development companies, or BDCs. BDCs lend to and invest in the private debt and equity markets. The majority, if not all, of holdings in this portfolio are in BDCs, typically involving 20-30 positions with a moderate level of turnover. Specialty Finance BDC is suitable for clients seeking alternative investment exposure to the private markets, one that involves high levels of income from an equity portfolio with above-average volatility. Most of the portfolio income will be in the form of non-qualified dividends.

• Specialty Finance BDC Fact Sheet
• Specialty Finance BDC Performance Thru 6-30-22
• Specialty Finance BDC Quarterly Commentary