The stock market treaded water during the fourth quarter, awaiting final resolution of the Fiscal Cliff.  On that front, there was some positive midnight news on the final day of the year as Congress struck a deal on revenues (taxes), but predictably punted the question over spending to another day.  That day will likely prove to be in roughly two months, when the debt ceiling is reached yet once again.

In spite of nagging macroeconomic concerns emanating from Washington, the European Union and China, the stock market once again did what it does best by confounding experts with a stunning 16% full year gain.  The Broadleaf Growth Portfolio’s (BGEP) performance trailed the overall market’s return slightly for the full year period.

On a three and five year basis, the portfolio continues to perform favorably relative to its peer group, all Large Cap Growth portfolios tracked by Morningstar.  Since inception, the portfolio has gained 5.9% annually, net of fees, compared to 4.3% for the S&P 500 over the same time period.

For details on our firm’s performance results, our investment outlook, and related disclosures, please read the attached Performance Review.