This information was updated May 19, 2008.

• The Small Cap Growth product is benchmarked to the Russell 2000® Growth Index.
  
• The Portfolio Manager utilizes a “conservative growth” strategy and invests almost exclusively in profitable companies with relatively solid balance sheets.
  
• We seek companies which are growing or have the potential to grow rapidly. We believe these companies may attract momentum players in the future.
• Portfolios generally demonstrate valuations below and growth characteristics at or above those of the Russell 2000® Growth 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 150 stocks, with no one stock typically exceeding 5% of a total portfolio.

The objective of the Small Cap Growth product is to consistently out perform the Russell 2000® Growth Index over a complete market cycle. Portfolios are comprised of small cap companies growing faster than the index, but trading at valuations at or below the index. Manager pays close attention to valuation, insisting that the price paid for each new stock added to the portfolio be justifiable on a discounted cash-flow basis. Most stocks in the Growth composite fall under one of the following scenarios:

• Emerging Growth – Fast growing companies generally with lower market capitalization of under $500m. Often have little analyst coverage and have yet to hit the “radar screen” of most institutional investors.

• Recovering Growth – Solid, established companies with solid growth prospects, but stock is undervalued due to short-term factors.

• Sector out of favor – Solid growth companies in industry groups which are currently not popular with most investors.

Annualized Returns as of 3/31/08

The Russell 2000® Growth Index is used as a benchmark. The Index is unmanaged and represents total returns, including reinvestment of dividends. The benchmark is used for comparative purposes only and may not reflect the risk or investment style of the Firm's strategy. The investment portfolio underlying the Russell 2000® Growth Index is different from the investments in the portfolios managed by the firm.

Richard Todaro

Richard Todaro, CFA, a Vice President and Director, has been the Portfolio Manager of the Small Cap Growth portfolio since 1999. He joined Kennedy Capital in 1996 as an analyst and has held positions of increasing responsibility, including the position of assistant director of research and assistant portfolio manager. Mr. Todaro received a BSBA in Finance from the University of Missouri and an MS in Finance from Saint Louis University.