21 years ending December 31, 2007

Source:
Russell Investment Group
Russell 2000 vs. Russell 1000
*see disclosure


Again experience demonstrates that outperformance between large- and small-capitalization stocks runs in market cycles. Historically, periods of large-cap out- performance are followed by similar periods that favor small-caps, and vice versa. In 1990, small-cap stocks had an annual return of -19.51 percent and large-caps posted a -4.16 percent. While both were in negative territory, large-caps were better performers by 15.35 percent. The following year both styles delivered positive performances with small-caps representing a 13.02 annual edge at 46.05 percent and large-caps at 33.03 percent.

As no single style is consistently the best performer, and the cycles are difficult to predict, investors may choose to have a blend (determined by your individual investment objectives) of smaller and larger-cap stocks in their portfolio.

Index descriptions:
Russell 2000 Index: Consists of the smallest 2000 securities in the Russell 3000 Index, representing approximately 8% of the Russell 3000 total market capitalization. This is the small capitalization index that is widely regarded in the industry as a good measure of small capitalization stocks.

Russell 1000 Index: Consists of the 1000 largest securities in the Russell 3000 Index, representing approximately 92% of total market capitalization. This large capitalization (market-oriented) index represents the universe of stocks from which most active money managers typically select. The Russell 1000 is highly correlated with the S&P 500 Index.

PERFORMANCE

Annual Returns:
Russell 2000 Index Russell 1000 Index
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
 -1.56%
18.37
4.56
18.33
47.25
-20.48
2.49
-3.02
21.26
-2.55
22.36
16.49
28.44
-1.82
18.91
18.41
46.05
-19.51
16.24
24.89
-8.77

5.77%
15.46
6.28
11.40
29.89
-21.65
-12.45
-7.79
20.91
27.02
32.85
22.45
37.77
0.38
10.15
9.04
33.03
-4.16
30.42
17.23
2.94


The graph is compiled using performance statistics based on the Investment Style Indices listed above. The information contained herein has been obtained from sources believed reliable, but the accuracy of this information is not guaranteed. The returns reflect Russell Index Returns, not ICM composite returns.

ICM Asset Management, Inc. is an investment management firm specializing in small-cap, small- to mid-cap value, large-cap and fixed income investments. Additional information regarding ICM Asset Management, Inc. is contained in Part II of Form ADV which is on file with the Securities and Exchange Commission and is available from ICM upon request.

For further explanation, please contact an ICM investment professional at 800.488.4075 or marketing@icmasset.com.
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