This information was updated January 27, 2010.

• The Small Cap Core portfolios are benchmarked to the Russell 2000® Index.
• Companies in the portfolios generally have relatively lower analyst coverage and institutional ownership than other comparable companies in the benchmark.
• Portfolios generally demonstrate valuations below and growth characteristics at or above those of the Russell 2000® benchmark.
• Portfolios are actively managed using a bottom-up investment approach and the Portfolio Manager does not attempt to time the markets.
• Portfolios are fully invested at all times, generally holding less than 10% cash.
• Our approach seeks to minimize risk through diversification. Portfolios generally hold between 100 to 120 stocks, with no one stock typically exceeding 5% of a total portfolio.

The objective of the Small Cap Core product is to consistently out perform the Russell 2000® Index over a complete market cycle. Portfolios are comprised of a combination of small cap growth and small cap value stocks, resulting in portfolios with characteristics in line with those of the Russell 2000® benchmark. Many small cap companies have solid growth prospects, stable cash flows and strong balance sheets, but lack Wall Street sponsorship. This lack of visibility creates pricing inefficiencies, and the manager seeks to exploit these opportunities.

Donald Cobin

Donald Cobin, CFA is a Vice President and is the Portfolio Manager for the Small Cap Core portfolios.  From 2002 until February 2007, Don was one of five senior investment professionals at Matador Capital Management, a value-focused hedge fund with long/short equities and limited distressed debt investments.  Prior to his tenure at Matador, Don served as Director of Research at Delaware Investments, and prior to that as an investment analyst at Conseco and WR Huff.  Mr. Cobin earned a BA from Emory University and his MBA from the Wharton School of the University of Pennsylvania.

Annualized Returns as of 12/31/09

Performance returns presented Gross of Fees do not reflect the deduction of investment advisory fees. A client's return will be reduced by the advisory fees as described in Part II of the Form ADV and other expenses incurred by the account. For example, an annual advisory fee of 1% compounded quarterly over 10 years will reduce a gross 14.44% annual return to a net 13.24% annual return. Part II of the Form ADV is available upon request. Past performance is not indicative of future results. Kennedy Capital Management, Inc. has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).

Although the statements of fact and data in this report have been obtained from, and are based upon, sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions included in this report constitute the Firm's judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

Russell Investment Group is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto.  The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited.  This is a presentation of Kennedy Capital Management, Inc.  Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in Kennedy Capital Management's presentation thereof.

The Russell 2000® Index is used as the benchmark. The Index is unmanaged and represents total returns including reinvestment of dividends. The benchmark is used for comparative purposes only and generally reflects the comparable risk or investment style of the Firm's strategy. The investment portfolios underlying the Index are different from the investments in the portfolios managed by the Firm. Certain accounts may also use other benchmarks not listed in the Annual Disclosure Presentation. The Composite Disclosure Presentation does not cover the benchmark returns included in the Annual Disclosure Presentation.

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.

The performance figures reported herein are unaudited, may be based upon information obtained via electronic data sources (”feeds”) and may be subject to change. Data feeds from many of KCM clients' selected custodians are obtained through third party, and are used to compare custodial data to KCM's client account records as frequently as daily. In some instances, variances are noted and aggregated until each month-end, so long as such aggregated variances amount to less than one percent of the prior month-end market value of the account. All such variances are typically reconciled to the applicable account no later than each month-end. Variances of one percent or more will generally be reconciled to the account promptly upon detection.

Composite specific data provided within this presentation has been calculated from accounts that are discretionary as defined in this paragraph. The assets shown are derived only from discretionary accounts. Non-discretionary accounts, as defined by KCM, are accounts that are not included in the composite due to one or both of the following criteria: there were significant cash inflows or outflows within the account and/or the account's asset level did not meet the minimum requirement to remain in the composite. The temporary removal of such an account occurs at the beginning of the month and the account re-enters the composite the month after the criteria has been met.

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