This information was updated January 27, 2010.

• The Micro Cap product is benchmarked to the Russell Microcap® Index.
• Upon initial purchase, stocks will generally have a market capitalization of under $500 million.
• Portfolio Manager seeks to exploit inefficiencies that often exist in the valuations of micro cap stocks.
• Companies at the lower end of the market cap spectrum may have little or no sell-side research coverage – which can lead to pricing inefficiencies.
• KCM employs a team of 15 equity analysts, each with industry/sector expertise.
• The size and depth of our team allows us to do extensive fundamental research on companies with little/no research coverage which are often overlooked by other investors.
• Restructurings, spin-offs and other similar situations often result in the inefficient pricing of these securities.
• The Portfolio Manager's objective is to seek fundamentally solid micro cap companies with a catalyst that will attract other investors.
• Portfolios generally demonstrate valuations below and growth characteristics at or above those of the benchmark.
• Portfolios are actively managed using a bottom-up investment approach and the Portfolio Manager does not attempt to time the markets. Cash is typically less than 10% of the portfolio.
• Our approach seeks to minimize risk through diversification. Portfolios generally hold between 80 and 150 stocks, with no one stock typically exceeding 3% of the total portfolio.

The objective of the Micro Cap product is to consistently outperform the Russell Microcap® Index over a complete market cycle. The Portfolio Manager first identifies micro cap (generally under $500 million in market cap) companies we believe have solid fundamentals and the potential for significant sales/earning growth. Within that universe, we look for pricing inefficiencies resulting from a lack of Wall Street analyst coverage on many micro cap companies.

Timothy Hasara
	Timothy Hasara, a Vice President, is the Portfolio Manager of the Micro Cap and Small Cap Value II portfolios.  Prior to joining Kennedy Capital, he was an Information Systems Manager for the office of the Illinois Secretary of State.  Mr. Hasara received a BBA in Marketing  from the University of Notre Dame and an MS in Management from Johns Hopkins University.

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.  KCM 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 Microcap® Index measures the performance of the microcap segment of the U.S. equity market. It makes up less than 3% of the U.S. equity market. It includes 1000 of the smallest securities in the small-cap Russell 2000® Index based on a combination of their market cap and current index membership and it includes the next 1,000 securities. Russell Microcap Index is constructed to provide a comprehensive and unbiased barometer for the microcap segment trading on national exchanges, while excluding lesser-regulated OTC bulletin board securities and pink-sheet stocks due to their failure to meet national exchange listing requirements. The Russell Microcap Index is completely reconstituted annually to ensure larger stocks do not distort performance and characteristics of the true microcap opportunity set.

The Russell Microcap® 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 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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