This information was updated January 27, 2010.

• The Small Cap Value I Product is benchmarked to the Russell 2000® Value Index.
• The Portfolio Manager seeks companies generating superior cash flow returns on invested capital.
• 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 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 and 150 stocks, with no one stock typically exceeding 5% of a total portfolio.

The objective of the Small Cap Value I product is to consistently out perform the Russell 2000® Value Index over a complete market cycle. The portfolio manager first identifies small cap companies generating above average cash returns on invested capital. Within that universe, the manager seeks to identify companies that may be undervalued because they are under followed and/or misunderstood by other investors.

Frank Latuda Jr.

Frank Latuda, JR., CFA, a Vice President, Director, and the Chief Investment Officer (CIO), is Portfolio Manager (PM) of the Small Cap Value I, Mid Cap Value and All Cap Value portfolios. As CIO, Frank also serves as the Chairman of the Investment Policy Committee.  Frank joined Kennedy Capital as an equity analyst in 1997 and served as Director of Research from 1998 until 2000.  He has been a PM since October of 2000 when he took over the Small Cap Value I strategy. Prior to joining Kennedy Capital, he was an analyst with Burns, Pauli, Mahoney Company.  Mr. Latuda earned a BS in Electrical Engineering from the University of Notre Dame, as well as an MS in Electrical Engineering and an MBA from the University of Illinois.

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® Value 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 Independent Verifier’s Report does not cover the benchmark returns included in the Annual Disclosure Presentation.

The Russell 2000 Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect value characteristics.

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 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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