Value vs Growth

21 years ending December 31, 2007

Source:
Russell Investment Group
Russell 3000 Value vs. Russell 3000 Growth
*see disclosure

Many consider Growth and Value to be the two most proven, traditional active approaches to investing. These two styles often have significantly different returns over shorter time periods; however, the patterns are hard to predict.

Over the years, both Value (based on the Russell 3000 Value Index) and Growth (based on the Russell 3000 Growth Index) demonstrate alternating periods of outperformance. In 1993, Value posted an annual return of 18.65 percent while Growth came in at 3.69 percent. That gave Value the edge with a 14.96 percent annual outperformance. Just one year later, the cycle reversed and Growth investing rebounded to 2.20 percent and Value dropped to -1.95 percent, yielding a Growth outperformance of 4.15 percent.

Over longer time periods, these two styles tend to compliment each other. Many experts recommend that investors, in order to reduce overall portfolio volatility, diversify their investments to include more than one style.

Index descriptions:
Russell 3000 Value: Contains those Russell 3000 securities with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value Indices.

Russell 3000 Growth: Contains those Russell 3000 securities with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth Indices.

PERFORMANCE
Annual Returns:

	R3000 Value	R3000 Growth
2007	-1.01%	11.40%
2006	22.34	9.46
2005	6.87	5.17
2004	16.94	6.93
2003	31.13	30.97
2002	-15.18	-28.04
2001	-4.33	-19.63
2000	8.04	-22.4
1999	6.65	33.82
1998	13.50	35.02
1997	34.83	28.74
1996	21.60	21.88
1995	37.03	36.57
1994	-1.95	2.20
1993	18.65	3.69
1992	14.90	5.22
1991	25.41	41.66
1990	-8.85	-1.31
1989	24.22	34.68
1988	23.63	12.00
1987	-0.13	3.92

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 value, 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, is available from ICM upon request, and is available on our Web site in the Publications/Contract section.

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