Market Cycles

Source:
Russell Investment Group
As of reconstitution, June 30, 2008
Market-cap data updated June 30, 2008

Please select the chart below to enlarge for optimal viewing.

The chart above is arranged so that every year the highest performing asset class is at the top and the lowest at the bottom. This chart visually represents the rationale for holding a percentage of your portfolio in different asset classes. The indices presented do not represent all asset classes; there may be better performing indices than those shown above.

ICM's portfolios are not as diversified as the indices described and therefore, ICM cautions potential investors that the performance of such indices is not directly comparable to the results of any portfolio that ICM advises.

Strategies are represented by the following indices:

Russell 1000® Index (not shown on chart)
This index measures the performance of the 1,000 largest companies in the Russell 3000® Index, which represents approximately 92 percent of the total market capitalization of the Russell 3000 Index. The average dollar weighted market capitalization as of June 30, 2008, was approximately $78.82 billion; the median market capitalization was approximately $4.94 billion. The smallest company in the index had an approximate market capitalization of $755 million.

Russell 1000® Value Index
This index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 1000® Growth Index
This index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000® Index
This index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately eight percent of the total market capitalization of the Russell 3000 Index. The weighted average market capitalization was approximately $1.07 billion; the median market capitalization was approximately $463 million. The index had a total market capitalization range of $56 million to $3.88 billion.

Russell 2000® Value Index
This index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 2000® Growth Index
This index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2500™ Index
This index measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 16 percent of the total market capitalization of the Russell 3000 Index. The weighted average market capitalization was approximately $2.54 billion; the median market capitalization was approximately $610 million. The largest company in the index had an approximate market capitalization of $10.01 billion.

Russell 2500™ Value Index
This index measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 2500™ Growth Index
This index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.

S&P 500 Index
This index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index (stock price times the number of shares outstanding), with each stock’s weight in the index proportionate to its market value. The “500” is one of the most widely used benchmarks of U.S. equity performance.

MSCI EAFE (International Index)
The Morgan Stanley Capital International (MSCI) EAFE Index is a market capitalization weighted index composed of companies representative of the market structure of 21 developed market countries in Europe, Australasia and the Far East.

Lehman Bros. Gov’t/Credit Int. Bond Index (LBGC)
Composed of all bonds that are investment grade with maturities between one and 9.99 years. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Indices are rebalanced monthly by market capitalization.