N-CSR 1 d15598dncsr.htm N-CSR N-CSR

As filed with the U.S. Securities and Exchange Commission on March 3, 2021

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-08352

 

 

LKCM Funds

(Exact name of registrant as specified in charter)

 

 

c/o Luther King Capital Management Corporation

301 Commerce Street, Suite 1600

Fort Worth, TX 76102

(Address of principal executive offices) (Zip code)

 

 

K&L Gates LLP

1601 K Street, NW

Washington, DC 20006

(Name and address of agent for service)

 

 

1-800-688-LKCM and 1-800-423-6369

Registrant’s telephone number, including area code

Date of fiscal year end: December 31

Date of reporting period: December 31, 2020

 

 

 


Item 1. Reports to Stockholders.

(a) Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).


 

 

LKCM

FUNDS

 

 

LKCM Small Cap Equity Fund

LKCM Small-Mid Cap Equity Fund

LKCM Equity Fund

LKCM Balanced Fund

LKCM Fixed Income Fund

LKCM International Equity Fund

Annual Report

December 31, 2020

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the LKCM Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the LKCM Funds (if you hold your Fund shares directly with the LKCM Funds) or from your financial intermediary, such as a broker-dealer or bank (if you hold your Fund shares through a financial intermediary). Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you hold your Fund shares directly with the LKCM Funds, you may elect to receive shareholder reports and other communications electronically from the LKCM Funds by calling 1-800-688-LKCM or, if you hold your Fund shares through a financial intermediary, by contacting your financial intermediary.

You may elect to receive all future reports on paper free of charge. If you hold your Fund shares directly with the LKCM Funds, you can inform the LKCM Funds that you wish to continue receiving paper copies of your shareholder reports by calling 1-800-688-LKCM or, if you hold your Fund shares through a financial intermediary, contacting your financial intermediary. Your election to receive reports in paper will apply to all of the LKCM Funds you hold directly with LKCM Funds or all of the funds you hold through your financial intermediary, as applicable.


Dear Fellow Shareholders:

We report the following performance information for the LKCM Funds for indicated periods ended December 31, 2020:

 

Funds

   Inception
Date
   NAV @
12/31/2020
   Net
Expense
Ratio*, **
   Gross
Expense
Ratio**
   One Year
Total
Return
Ended
12/31/2020
   Five Year
Average
Annualized
Return
Ended
12/31/2020
   Ten Year
Average
Annualized
Return
Ended
12/31/2020
   Avg.
Annual
Total
Return
Since
Incept.

LKCM Small Cap Equity Fund

       07/14/1994      $ 21.77        1.01%        1.08%        34.79%        14.81%        10.95%        11.08%

Russell 2000® Index(1)

                           19.96%        13.26%        11.20%        9.67%

LKCM Small-Mid Cap Equity Fund

       05/02/2011      $ 11.15        1.01%        1.96%        30.66%        14.40%        N/A        9.45%

Russell 2500® Index(2)

                           19.99%        13.64%        N/A        11.10%

LKCM Equity Fund

       01/03/1996      $ 33.74        0.80%        0.99%        22.83%        15.95%        12.89%        9.45%

S&P 500® Index(3)

                           18.40%        15.22%        13.88%        9.52%

LKCM Balanced Fund

       12/30/1997      $ 26.76        0.80%        1.00%        15.28%        11.22%        10.01%        7.23%

S&P 500® Index(3)

                           18.40%        15.22%        13.88%        8.08%

Bloomberg Barclays U.S. Intermediate

                                       

Government/Credit Bond Index(4)

                           6.43%        3.64%        3.11%        4.56%

LKCM Fixed Income Fund

       12/30/1997      $ 11.19        0.50%        0.79%        4.29%        3.42%        2.82%        4.26%

Bloomberg Barclays U.S. Intermediate

                                       

Government/Credit Bond Index(4)

                           6.43%        3.64%        3.11%        4.56%

LKCM International Equity Fund

       05/01/2019      $ 12.44        1.02%        4.11%        14.45%        N/A        N/A        14.15%

MSCI/EAFE® Index(5)

                           8.28%        N/A        N/A        9.82%

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance of the Funds may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-688-LKCM. The Funds impose a 1.00% redemption fee on shares held less than 30 days. If reflected, the fee would reduce performance shown.

 

*

Luther King Capital Management Corporation, the Funds’ investment adviser, has contractually agreed to waive all or a portion of its management fee and/or reimburse expenses of each Fund to maintain the expense ratios designated in the Funds’ prospectus through May 1, 2021. This expense limitation excludes interest, taxes, brokerage commissions, indirect fees and expenses related to investments in other investment companies, including money market funds, and extraordinary expenses. Investment performance, which is based on the net expense ratio, reflects fee waivers, if any, in effect during the relevant period. In the absence of such waivers, total return would be reduced. Investment performance is based upon the net expense ratio. LKCM waived management fees and/or reimbursed expenses for each Fund during the fiscal year ended December 31, 2020.

**

Expense ratios above are as reported in the Funds’ current prospectus dated May 1, 2020. Expense ratios reported for other periods in the financial highlights of this report may differ.

(1)

The Russell 2000® Index is an unmanaged index which measures the performance of the 2,000 smallest companies in the Russell 3000® Index.

(2)

The Russell 2500® Index is an unmanaged index which measures the performance of the 2,500 smallest companies in the Russell 3000® Index.

(3)

The S&P 500® Index is an unmanaged capitalization-weighted index of 500 selected stocks that is generally considered representative of the performance of large capitalization companies in the U.S. stock market.

(4)

The Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index is an unmanaged market value weighted index measuring both the principal price changes of, and income provided by, the underlying universe of securities that comprise the index. Securities included in the index must meet the following criteria: fixed as opposed to variable rate; remaining maturity of one to ten years; minimum outstanding par value of $250 million; rated investment grade or higher by Moody’s Investors Service or equivalent; must be dollar denominated and non-convertible; and must be publicly issued.

(5)

The Morgan Stanley Capital International Europe, Australia, Far East Index (“MSCI/EAFE® Index”) is an unmanaged index composed of large-cap and mid-cap securities across 21 European and Pacific Basin countries. The MSCI/EAFE® Index is a recognized international index and is weighted by market capitalization.

Note: The indices defined above are not available for direct investment and the index performance therefore does not include fees, expenses or taxes.

2020 Review

Twelve months ago, we were still in the longest economic expansion in U.S. history, with unemployment sitting near historic lows, wages and income continuing to strengthen, and inflation remaining stable. Then, the novel coronavirus pandemic (“COVID-19” or “COVID”) gained a foothold in the United States. The human impact has been harrowing, with the United States on pace to lose more citizens to the pandemic than the 405,000 American souls lost in World War II. The public health response to the pandemic, imploring social distancing and mandating partial or complete lockdowns, worked initially to drive down infections and “flatten the curve.” However, these steps precipitated a severe economic crisis analogous to a natural disaster, as supply, demand, and financial shocks struck in unison. Individuals have lost livelihoods and businesses, and we believe the burden has fallen most harshly on those least able to bear the losses.

Unlike the beginnings of many recessions when it is initially unclear whether or not the economy has entered a downturn, the emergence of the pandemic and the subsequent response of public health policy made the immediacy of the economic downturn painfully clear. Policymakers rightly heeded this warning and acted swiftly with record amounts of fiscal and monetary stimulus. On the monetary side,

 

2


the Federal Reserve Board moved in March 2020 to reduce its key policy interest rate by 1.50% to near zero percent. The Federal Reserve also resumed asset purchases and launched a series of emergency lending facilities, both designed to reassure financial markets and support commerce. These actions by the Federal Reserve contributed to lower borrowing costs for households, businesses, and state and local governments. Moreover, these measures boosted interest rate-sensitive sectors of the economy such as housing and autos, which have rebounded sharply over the past six months.

Just as vital, Congress injected fiscal stimulus into the economy by sending over one-half of U.S. taxpayers a significant stimulus check. In addition, unemployment insurance payments were augmented by $600 per week for a defined period. This relief enabled many households to remain current on their debt service, reducing the potential strain on the banking system. Congress also targeted small businesses, which represent the bulk of U.S. payrolls. The Paycheck Protection Program (“PPP”) allowed small businesses to apply for low-interest loans administered by the Small Business Administration, many of which are expected to be eligible for forgiveness. The PPP was designed as an effort to enable small businesses to retain as much of their payroll as possible on the presumption that the economic contraction, while sharp, would be relatively short lived. Thus, the premise underlying these loans was that if employers and employees could weather the pandemic storm in place, the economy would seemingly be easier to reboot thereafter.

The equity market, as measured by the S&P 500® Index, rose 18.4% in 2020, while corporate earnings declined by nearly the same amount under the strain of the economic recession. We believe that historically low interest rates and the prospects of a sharp economic recovery in 2021 underpinned the significant increase in the multiple of earnings investors were willing to pay for equity securities. Despite the headline strength of various market indices in 2020, the market appreciation has been extremely narrow in our view. Three stocks—Apple, Amazon, and Microsoft – accounted for approximately 47.6% return of the S&P 500® Index in 2020 due to the capitalization weighted nature of the index and significant price appreciation of these three companies.

As we turn the calendar, we believe a clear economic recovery has taken hold, analysts have begun to revise corporate earnings estimates higher, and consumer and business confidence levels appear to be increasing. We believe that the massive fiscal and monetary policy stimulus have helped blunt the recessionary damage to the economy. Human ingenuity in terms of behavioral adaption as well as vaccine and therapeutic developments have been remarkable and impressive in our view. We believe the monetary and fiscal policy prescription to combat the 2020 recession has created a backdrop that encourages higher stock and bond valuations, providing support to consumer net worth. Exogenous shocks can still disrupt the nascent economic recovery, but as we look ahead into 2021, we are optimistic.

2021 Outlook

As we enter 2021, the economic backdrop remains constructive for equities in our view. We believe that corporate earnings should rise slightly less than 20%, employment should continue to improve as the economy reopens, and the Federal Reserve is likely to maintain an easy monetary stance. In our view, consumers continue to save a remarkably high portion of their disposable income, which represents considerable pent-up purchasing power. Housing has been very strong, driven by record low mortgage rates and low home inventory and the “Working From Home” adaption, and we believe this strength should continue in 2021.

We expect this positive backdrop for corporate earnings and consumer spending to drive above-trend U.S. Gross Domestic Product (“GDP”) growth in 2021. We believe the equity market should perform well in this environment, although we would not be surprised if equity market returns are lower than the forecasted growth in corporate profits, as the multiple of earnings investors are willing to pay is likely to decline as investors begin to anticipate higher inflation and interest rates in response to robust economic expansion.

We believe four primary tailwinds should support the sharp rebound in corporate earnings in 2021. First, many companies have been able to retain pricing power. Second, housing data remain robust, which has a multiplier effect on demand for consumer durable goods, such as appliances and furniture. Third, the consumer appears well positioned with excess savings, rising real incomes, and higher household net worth. Finally, record low interest rates have prompted companies to raise debt capital to fortify balance sheets and ensure liquidity, which could signal the resumption of broader share repurchases by companies in 2021.

We believe one of the notable and unusual developments of the COVID economic downturn has been an extraordinary rise in the personal savings rate. The CARES Act approved by Congress authorized significant payments to consumers. Between March 2020 and August 2020, at least $712 billion flowed into personal income as a result of COVID-related stimulus measures including direct payments, supplemental unemployment insurance, and PPP loans to small businesses. Historically, consumers draw down their savings in an economic downturn. However, the portion of disposable personal income that consumers saved, known as the savings rate, soared from approximately 8.3% in February of 2020 to approximately 33.6% in April 2020 before settling most recently to approximately 12.9% at of the end of November 2020. We believe restricted spending on services such as dining out, getting a haircut, or having elective surgery supported this savings rate. We believe these savings equate to an incremental $1.2 trillion in people’s pockets at a time when the economic outlook appears to be brightening, and vaccines begin to roll out.

The extraordinary events of 2020 likely position 2021 to be a year of transition in our view, with spending shifting back to services from goods, to private from public, and to in-person from virtual. We believe the impact of COVID cases, the effectiveness of vaccines, and the eventual fading of fiscal stimulus will influence the trajectory of the economic recovery moving forward. In our view, it is important to recognize that the stimulus provided by lower interest rates inevitably wears off and the purpose of reducing interest rates is to pull consumption forward. Consumer purchases of homes, appliances, and autos bring future economic activity into the present. But when the

 

3


future inevitably arrives, that economic activity is often missing. We believe that the economic bite of the pandemic would have been far worse in the absence of significant monetary and fiscal stimulus. However, we must appreciate the degree to which the current economic uplift is being driven by record stimulus.

Considering the combination of the recently approved $900 billion fiscal stimulus package, the prospect of households unleashing substantial pent-up demand in 2021, and the higher likelihood of even more stimulus due to the change in control of the U.S. Senate, we believe the setup for inflation to increase is more favorable than it has been for many years. Historically, elevated inflation readings have often spurred a tightening of monetary policy. However, the Federal Reserve has stated that it is willing to allow prices to run a little “hotter” than in past cycles. We believe that at some point in 2021 reports will likely indicate the rate of inflation is rising above the Federal Reserve’s 2% target. In a recent press conference Federal Reserve Chairman Jerome Powell took care to communicate that if inflation does rise as the economy reopens, this move will likely prove temporary. However, investors have historically been conditioned to anticipate a tightening of monetary policy in response to rising inflation. We believe that rising bond yields, which we expect to be a feature of 2021, reflect increased expectations for higher inflation.

We do not anticipate an inflationary overheating of the U.S. economy, because the output gap – the difference between where the U.S. economy is and where it should be—was likely around 5% of GDP in the fourth quarter of 2020, likely signaling significant excess capacity in the economy. We believe the most constructive outcome that could emerge is a kind of “Goldilocks scenario” in which prices rise, but not at an alarming pace. One possible risk to this outcome would be that the U.S. economy recovers much faster than policymakers and investors anticipate.

A key risk to our outlook for 2021 is a sharp rise in bond yields, which has the potential to send ripples through the capital markets and economy in at least one of three important ways. First, a dramatic move in this cost of capital tends to reveal weaker portions of the capital market that are reliant on cheap liquidity. Second, higher yields typically pressure interest rate sensitive sectors in the economy such as housing and autos. Finally, higher yields can weigh on the valuation of assets, including equities, particularly if those valuations are elevated. The ability of higher interest rates to exert downward pressure on earnings multiples is particularly of interest today in our view. Following two years in which the equity market rose in excess of corporate earnings growth, we would not be surprised to see a reversal of this trend in 2021, as corporate earnings growth exceeds the returns provided by the equity market.

LKCM Small Cap Equity Fund

The LKCM Small Cap Equity Fund returned 34.79% for the year ended December 31, 2020, as compared to the 19.96% return for the Russell 2000® Index, the Fund’s benchmark. The Fund’s relative performance benefited from sector allocation decisions, particularly being overweight the Healthcare sector and being underweight the Utilities and Real Estate sectors. Stock selection decisions in the Information Technology, Financials, Consumer Discretionary, Industrials and Consumer Staples sectors benefited the Fund’s relative performance, which was partially offset by stock selection decisions in the Materials sector. The Fund also benefited during the year from one portfolio company being acquired and six portfolio companies graduating out of our small cap investment strategy due to market appreciation. The Fund benefited from our investment strategy that focuses on companies that we believe are high quality as well as our tilt towards growth-oriented companies. We have continued to add to the Fund’s holdings of value-oriented companies in anticipation of the U.S. economy reopening during 2021. We believe our investment strategy has the Fund well-positioned for 2021.

LKCM Small-Mid Cap Equity Fund

The LKCM Small-Mid Cap Equity Fund outperformed the Russell 2500® Index, the Fund’s benchmark, for the year ended December 31, 2020, returning 30.66% as compared to the 19.99% return for the benchmark. The Fund’s relative performance benefited from sector allocation decisions, particularly being overweight the Healthcare and Information Technology sectors and being underweight the Financials and Real Estate sectors. Stock selection decisions in the Industrials, Healthcare, Consumer Staples and Real Estate sectors benefited the Fund’s relative performance, which was partially offset by stock selection decisions in the Information Technology sector. The Fund benefited from our investment strategy that focuses on companies that we believe are high quality as well as our tilt towards growth-oriented companies. We have continued to add to the Fund’s holdings of value-oriented companies in anticipation of the U.S. economy reopening during 2021. We believe our investment strategy has the Fund well-positioned for 2021.

LKCM Equity Fund

The LKCM Equity Fund returned 22.83% for the year ended December 31, 2020, as compared to the 18.40% return for the S&P 500® Index, the Fund’s benchmark. The Fund’s relative performance benefited from stock selection decisions, particularly in the Industrials, Healthcare and Information Technology sectors, which was partially offset by stock selection decisions in the Financials sector. The Fund’s underweight position in the Information Technology sector detracted from the Fund’s relative performance, which was partially offset by the Fund’s underweight position in the Financials sector. The Fund also benefited from an announcement in December 2020 that one its portfolio companies would be acquired for a significant premium. We remain confident in our investment strategy for the Fund that focuses on investments in companies that we believe are high quality, and we believe the Fund is well-positioned for 2021.

 

4


LKCM Balanced Fund

The LKCM Balanced Fund gained 15.28% for the year ended December 31, 2020 versus the 18.40% return for the S&P 500® Index and the 6.43% return for the Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index. The Fund’s equity portfolio posted solid returns during 2020 and benefited from strong stock selection in the Healthcare and Communication Services sectors relative to the benchmark, which was partially offset by stock selection in the economically sensitive Industrials sector. The Fund’s equity portfolio also benefited from an announcement in December 2020 that one its portfolio companies would be acquired for a significant premium. The Fund’s fixed income portfolio remained focused on high quality intermediate corporate bonds, which seeks to serve the dual purpose of generating income and moderating overall risk in the Fund’s portfolio. We believe that Fund is well-positioned to meet both the challenges and the opportunities anticipated during 2021.

LKCM Fixed Income Fund

The LKCM Fixed Income Fund advanced 4.29% for the year ended December 31, 2020 compared to its benchmark, the Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index, which advanced 6.43% for the year ended December 31, 2020. During the year, yields declined substantially and the yield curve steepened as the Federal Reserve cut the Federal Funds Rate dramatically during March 2020, sharply increased its balance sheet, and backstopped the financial markets in response to the U.S. government-mandated shutdown to combat the COVID pandemic. In this environment, where longer-duration securities markedly outperformed their shorter-duration counterparts, the Fund’s duration of approximately 3.3 years detracted from performance relative to the duration of approximately 4.1 years for the benchmark. After widening sharply during the peak of the pandemic-related uncertainty in March 2020, credit spreads ended 2020 essentially where they began the year, tightening substantially after the aggressive monetary and fiscal policy intervention by the Federal Reserve and Congress. During the year, the Fund’s weighting in the Energy sector detracted from relative performance, which was partially offset by the Fund’s weightings in the Communications Services and Information Technology sectors. The Fund remains largely focused on short-to-intermediate investment grade corporate bonds with strong underlying credit fundamentals in an effort to mitigate both interest rate risk and credit risk as we anticipate the U.S. economy will continue to recover and inflation expectations will rise.

LKCM International Equity Fund

The LKCM International Equity Fund returned 14.45% for the year ended December 31, 2020, as compared to the 8.28% return for the MSCI/EAFE® Index, the Fund’s benchmark. During this period, the Fund’s relative performance benefited from an underweight position in the Financials sector and an overweight position in the Information Technology sector, which was partially offset by allocation decisions in other sectors. The Fund’s relative performance also benefited from strong stock selection decisions in the Healthcare, Industrials, Communication Services, Information Technology and Consumer Staples sectors. The Fund benefited from our bias towards companies that we believe are high quality with prospects for secular growth, as we believe these companies will continue to perform better than the broader market through market cycles. The expansionary stimulus from monetary and fiscal policy during 2020 benefited growth over cyclical exposure, though we believe there will be a better operating environment for cyclical companies during 2021. We have reduced the Fund’s underweight position in the Financials sector and increased the Fund’s overweight position in the Energy sector in an effort to increase the Fund’s exposure to value-oriented companies and cyclical companies. Although the global economic outlook remains uncertain, we believe that the extraordinary monetary and fiscal stimulus, strength in the consumer, and inventory cycles should support a positive bias as we hope to move past the COVID pandemic later in 2021.

 

LOGO

J. Luther King, Jr., CFA, CIC

February 1, 2021

 

5


The information provided herein represents the opinion of J. Luther King, Jr., CFA, CIC and is not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Please refer to the Schedule of Investments found on pages 15-29 of the report for more information on Fund holdings. Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any securities.

Mutual fund investing involves risk. Principal loss is possible. Past performance is not a guarantee of future results. Investments in equity securities are subject to market risks and significant fluctuations in value. Small and medium capitalization funds typically carry additional risks, since smaller companies generally have a higher risk of failure, and, historically, their stocks have experienced a greater degree of market volatility than stocks on average. Investments in debt securities typically decrease in value when interest rates rise. This risk is greater for longer-term debt securities. Investments in mortgage backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. These risks are discussed in the Funds’ summary and statutory prospectuses.

Earnings growth is not a measure of future performance.

Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration.

Spread is the percentage point difference between yields of various classes of bonds compared to treasury bonds.

Yield curve is a line that plots yields (interest rates) of bonds having equal credit quality but differing maturity dates. The slope of the yield curve gives an idea of future interest rate changes and economic activity.

Bond ratings are grades given to bonds that indicate their credit quality as determined by a private independent rating service such as S&P Global. The firm evaluates a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. In limited situations when the rating agency has not issued a formal rating, the rating agency will classify the security as nonrated.

Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business.

Investors should consider the investment objective, risks and charges and expenses of a Fund carefully before investing. Each Fund’s summary prospectus and the prospectus contain this and other information about the Fund. Investors can obtain a summary prospectus or the prospectus by calling 1-800-688-LKCM. The summary prospectus and the prospectus should be read carefully before investing in a Fund.

Quasar Distributors, LLC, distributor.

 

6


PERFORMANCE:

 

The following information illustrates the historical performance of the LKCM Small Cap Equity Fund as of December 31, 2020 compared to the Fund’s representative benchmark and peer group indices.

Performance data quoted represents past performance; past performance does not guarantee future results. The graph and table reflect the reinvestment of dividends and other distributions, if any, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-688-LKCM. Returns would have been lower if LKCM had not waived a portion of its management fee and/or reimbursed certain expenses of the Fund. Please see Note B to the Notes to the Financial Statements for specific information regarding management fee waiver and/or expense reimbursement arrangements for the Fund.

An index is an unmanaged portfolio and does not trade or incur any expenses. The Lipper Small-Cap Core Funds Index, however, does reflect the fees and expenses borne by the funds included in that index. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2020)

 

         
     

Past

1 Year

    

Past

5 Years(1)

    

Past

10 Years(1)

    

Since

Inception(1)(2)

LKCM Small Cap Equity Fund

       34.79%          14.81%          10.95%          11.08%

Russell 2000® Index

       19.96%          13.26%          11.20%          9.67%

Lipper Small-Cap Core Funds Index

       10.69%          11.37%          10.00%          9.96%
(1) 

Annualized

(2) 

July 14, 1994

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM SMALL CAP EQUITY FUND

(for the ten years ended December 31, 2020)

LOGO

The Russell 2000® Index is an unmanaged index consisting of the 2,000 smallest companies in the Russell 3000® Index.

The Lipper Small-Cap Core Funds Index is an unmanaged index generally considered representative of small cap core mutual funds tracked by Lipper, Inc.

 

7


PERFORMANCE:

 

The following information illustrates the historical performance of the LKCM Small-Mid Cap Equity Fund as of December 31, 2020 compared to the Fund’s representative benchmark and peer group indices.

Performance data quoted represents past performance; past performance does not guarantee future results. The graph and table reflect the reinvestment of dividends and other distributions, if any, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-688-LKCM. Returns would have been lower if LKCM had not waived a portion of its management fee and/or reimbursed certain expenses of the Fund. Please see Note B to the Notes to the Financial Statements for specific information regarding management fee waiver and/or expense reimbursement arrangements for the Fund.

An index is an unmanaged portfolio and does not trade or incur any expenses. The Lipper Small-Cap Core Funds Index, however, does reflect the fees and expenses borne by the funds included in that index. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2020)

 

         
             

Past

1 Year

    

Past

5 Years(1)

    

Since

Inception(1)(2)

LKCM Small-Mid Cap Equity Fund

                    30.66%          14.40%          9.45%

Russell 2500® Index

                    19.99%          13.64%          11.10%

Lipper Small-Cap Core Funds Index

                    10.69%          11.37%          9.24%
(1) 

Annualized

(2) 

May 2, 2011

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM SMALL-MID CAP EQUITY FUND

(for the period from May 2, 2011 (inception date) to December 31, 2020)

LOGO

The Russell 2500® Index is an unmanaged index consisting of the 2,500 smallest companies in the Russell 3000® Index.

The Lipper Small-Cap Core Funds Index is an unmanaged index generally considered representative of small cap core mutual funds tracked by Lipper, Inc.

 

8


PERFORMANCE:

 

The following information illustrates the historical performance of the LKCM Equity Fund as of December 31, 2020 compared to the Fund’s representative benchmark and peer group indices.

Performance data quoted represents past performance; past performance does not guarantee future results. The graph and table reflect the reinvestment of dividends and other distributions, if any, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-688-LKCM. Returns would have been lower if LKCM had not waived a portion of its management fee and/or reimbursed certain expenses of the Fund. Please see Note B to the Notes to the Financial Statements for specific information regarding management fee waiver and/or expense reimbursement arrangements for the Fund.

An index is an unmanaged portfolio and does not trade or incur any expenses. The Lipper Large-Cap Core Funds Index, however, does reflect the fees and expenses borne by the funds included in that index. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2020)

 

         
     

Past

1 Year

    

Past

5 Years(1)

    

Past

10 Years(1)

    

Since

Inception(1)(2)

LKCM Equity Fund

       22.83%          15.95%          12.89%          9.45%

S&P 500® Index

       18.40%          15.22%          13.88%          9.52%

Lipper Large-Cap Core Funds Index

       16.10%          14.04%          12.49%          8.43%
(1) 

Annualized

(2) 

January 3, 1996

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM EQUITY FUND

(for the ten years ended December 31, 2020)

LOGO

The S&P 500® Index is an unmanaged capitalization-weighted index of 500 selected stocks that is generally considered representative of the performance of large capitalization companies in the U.S. stock market.

The Lipper Large-Cap Core Funds Index is an unmanaged index generally considered representative of large cap core mutual funds tracked by Lipper, Inc.

 

9


PERFORMANCE:

 

The following information illustrates the historical performance of the LKCM Balanced Fund as of December 31, 2020 compared to the Fund’s representative benchmark and peer group indices.

Performance data quoted represents past performance; past performance does not guarantee future results. The graph and table reflect the reinvestment of dividends and other distributions, if any, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-688-LKCM. Returns would have been lower if LKCM had not waived a portion of its management fee and/or reimbursed certain expenses of the Fund. Please see Note B to the Notes to the Financial Statements for specific information regarding management fee waiver and/or expense reimbursement arrangements for the Fund.

An index is an unmanaged portfolio and does not trade or incur any expenses. The Lipper Mixed-Asset Target Allocation Growth Funds Index, however, does reflect the fees and expenses borne by the funds included in that index. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2020)

 

         
     

Past

1 Year

    

Past

5 Years(1)

    

Past

10 Years(1)

    

Since

Inception(1)(2)

LKCM Balanced Fund

       15.28%          11.22%          10.01%          7.23%

S&P 500® Index

       18.40%          15.22%          13.88%          8.08%

Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index

       6.43%          3.64%          3.11%          4.56%

Lipper Mixed-Asset Target Allocation Growth Funds Index

       16.58%          10.71%          9.19%          6.88%
(1) 

Annualized

(2) 

December 30, 1997

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM BALANCED FUND

(for the ten years ended December 31, 2020)

LOGO

The S&P 500® Index is an unmanaged capitalization-weighted index of 500 selected stocks that is generally considered representative of the performance of large capitalization companies in the U.S. stock market.

The Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index is an unmanaged market value weighted index measuring both the principal price changes of, and income provided by, the underlying universe of securities that comprise the index. Securities included in the index must meet the following criteria; fixed as opposed to variable rate; remaining maturity of one to ten years; minimum outstanding par value of $250 million; rated investment grade or higher by Moody’s Investors Service or equivalent; must be dollar denominated and non-convertible; and must be publicly issued.

The Lipper Mixed-Asset Target Allocation Growth Funds Index is an unmanaged index generally considered representative of mutual funds tracked by Lipper, Inc. that, by portfolio practice, maintain a mix of between 60%-80% equity securities, with the remainder invested in bonds, cash and cash equivalents.

 

10


PERFORMANCE:

 

The following information illustrates the historical performance of the LKCM Fixed Income Fund as of December 31, 2020 compared to the Fund’s representative benchmark and peer group indices.

Performance data quoted represents past performance; past performance does not guarantee future results. The graph and table reflect the reinvestment of dividends and other distributions, if any, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-688-LKCM. Returns would have been lower if LKCM had not waived a portion of its management fee and/or reimbursed certain expenses of the Fund. Please see Note B to the Notes to the Financial Statements for specific information regarding management fee waiver and/or expense reimbursement arrangements for the Fund.

An index is an unmanaged portfolio and does not trade or incur any expenses. The Lipper Short Intermediate Investment-Grade Debt Funds Index, however, does reflect the fees and expenses borne by the funds included in that index. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2020)

 

         
     

Past

1 Year

    

Past

5 Years(1)

    

Past

10 Years(1)

    

Since

Inception(1)(2)

LKCM Fixed Income Fund

       4.29%          3.42%          2.82%            4.26%

Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index

       6.43%          3.64%          3.11%          4.56%

Lipper Short Intermediate Investment-Grade Debt Funds Index

       5.86%          3.43%          2.82%          3.99%
(1) 

Annualized

(2) 

December 30, 1997

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM FIXED INCOME FUND

(for the ten years ended December 31, 2020)

LOGO

The Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index is an unmanaged market value weighted index measuring both the principal price changes of, and income provided by, the underlying universe of securities that comprise the index. Securities included in the index must meet the following criteria: fixed as opposed to variable rate; remaining maturity of one to ten years; minimum outstanding par value of $250 million; rated investment grade or higher by Moody’s Investors Service or equivalent; must be dollar denominated and non-convertible; and must be publicly issued.

The Lipper Short Intermediate Investment-Grade Debt Funds Index is an unmanaged index generally considered representative of short intermediate investment grade mutual funds tracked by Lipper, Inc.

 

11


PERFORMANCE:

 

The following information illustrates the historical performance of the LKCM International Equity Fund as of December 31, 2020 compared to the Fund’s representative benchmark and peer group indices.

Performance data quoted represents past performance; past performance does not guarantee future results. The graph and table reflect the reinvestment of dividends and other distributions, if any, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-688-LKCM. Returns would have been lower if LKCM had not waived a portion of its management fee and/or reimbursed certain expenses of the Fund. Please see Note B to the Notes to the Financial Statements for specific information regarding management fee waiver and/or expense reimbursement arrangements for the Fund.

An index is an unmanaged portfolio and does not trade or incur any expenses. The Lipper International Large-Cap Core Funds Index, however, does reflect the fees and expenses borne by the funds included in that index. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2020)

 

         
                     

Past

1 Year

    

Since

Inception(1)(2)

LKCM International Equity Fund

                                 14.45%          14.15%

MSCI/EAFE® Index

                                 8.28%          9.82%

Lipper International Large-Cap Core Funds Index

                                 5.04%          7.35%
(1) 

Annualized

(2) 

May 1, 2019

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM INTERNATIONAL EQUITY FUND

(for the period from May 1, 2019 (inception date) to December 31, 2020)

LOGO

The Morgan Stanley Capital International Europe, Australia, Far East Index (“MSCI/EAFE® Index”) is an unmanaged index composed of large-cap and mid-cap securities across 21 European and Pacific Basin countries. The MSCI/EAFE® Index is a recognized international index and is weighted by market capitalization.

The Lipper International Large-Cap Core Funds Index is an unmanaged index generally considered representative of large cap core mutual funds tracked by Lipper Inc.

 

12


LKCM Funds Expense Example — December 31, 2020

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (07/01/2020-12/31/2020).

ACTUAL EXPENSES

The third and fourth columns of the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the fourth column under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Although the Funds charge no sales load, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC (doing business as U.S. Bank Global Fund Services), the Funds’ transfer agent. If you request that a redemption be made by wire transfer, currently a $15.00 fee is charged by the Funds’ transfer agent. You will be charged a redemption fee equal to 1.00% of the net amount of the redemption if you redeem your shares of the LKCM Small Cap Equity, Small-Mid Cap Equity, Equity, Balanced, Fixed Income, and International Equity Funds within 30 days of purchase, unless otherwise determined by the Funds in their discretion. To the extent the Funds invest in shares of other investment companies as part of their investment strategies, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying funds in which the Funds invest in addition to the expenses of the Funds. Actual expenses of the underlying funds are expected to vary among the various underlying funds. These expenses are not included in the example below. The example below includes management fees, registration fees and other expenses. However, the example below does not include portfolio trading commissions and related expenses and other extraordinary expenses as determined under generally accepted accounting principles.

HYPOTHETICAL EXAMPLES FOR COMPARISON PURPOSES

The fifth and sixth columns of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the fifth and sixth columns of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactions costs were included, your costs would have been higher.

 

              Actual    Hypothetical (5% return
before expenses)
     Fund’s
Annualized
Expense
Ratio(1)
  Beginning
Account Value
07/01/2020
   Ending
Account Value
12/31/2020
   Expenses
Paid

During
Period(1)
   Ending
Account Value
12/31/2020
   Expenses
Paid

During
Period(1)

LKCM Small Cap Equity Fund

       1.00 %     $ 1,000.00      $ 1,420.70      $ 6.08      $ 1,020.11      $ 5.08

LKCM Small-Mid Cap Equity Fund

       1.00 %     $ 1,000.00      $ 1,321.10      $ 5.83      $ 1,020.11      $ 5.08

LKCM Equity Fund

       0.80 %     $ 1,000.00      $ 1,227.40      $ 4.48      $ 1,021.11      $ 4.06

LKCM Balanced Fund

       0.80 %     $ 1,000.00      $ 1,165.30      $ 4.35      $ 1,021.11      $ 4.06

LKCM Fixed Income Fund

       0.50 %     $ 1,000.00      $ 1,011.70      $ 2.53      $ 1,022.62      $ 2.54

LKCM International Equity Fund

       1.00 %     $ 1,000.00      $ 1,238.90      $ 5.63      $ 1,020.11      $ 5.08

 

(1)

Expenses are equal to the annualized net expense ratio for the fund, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

 

13


ALLOCATION OF PORTFOLIO HOLDINGS — LKCM Funds — December 31, 2020

Percentages represent market value as a percentage of total investments.

 

LKCM Small Cap Equity Fund

 

LOGO

LKCM Equity Fund

 

LOGO

LKCM Fixed Income Fund

 

LOGO

 

LKCM Small-Mid Cap Equity Fund

 

LOGO

LKCM Balanced Fund

 

LOGO

LKCM International Equity Fund

 

LOGO

 

 

 

14


LKCM SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
December 31, 2020

 

COMMON STOCKS - 95.9%    Shares   Value
Aerospace & Defense - 0.8%         

Mercury Systems, Inc. (a)

       19,120     $ 1,683,707
        

 

 

 
Auto Components - 0.9%         

Fox Factory Holding Corp. (a)

       16,290       1,722,016
        

 

 

 
Banks - 5.7%         

BancorpSouth Bank

       64,564       1,771,636

Comerica, Inc.

       33,485       1,870,472

Cullen/Frost Bankers, Inc.

       21,375       1,864,541

Glacier Bancorp, Inc.

       43,655       2,008,567

Pinnacle Financial Partners, Inc.

       35,705       2,299,402

Seacoast Banking Corp. of Florida (a)

       60,000       1,767,000
        

 

 

 
           11,581,618
        

 

 

 
Beverages - 0.9%         

Celsius Holdings, Inc. (a)

       35,240       1,772,924
        

 

 

 
Biotechnology - 6.6%         

CareDx, Inc. (a)

       32,945       2,386,865

Castle Biosciences, Inc. (a)

       34,275       2,301,566

Emergent BioSolutions, Inc. (a)

       23,330       2,090,368

Iovance Biotherapeutics, Inc. (a)

       35,095       1,628,408

Karyopharm Therapeutics, Inc. (a)

       60,000       928,800

Natera, Inc. (a)

       29,085       2,894,539

Neogen Corp. (a)

       14,415       1,143,110
        

 

 

 
           13,373,656
        

 

 

 
Building Products - 4.9%         

Builders FirstSource, Inc. (a)

       75,210       3,069,320

CSW Industrials, Inc.

       24,550       2,747,391

PGT Innovations, Inc. (a)

       112,771       2,293,762

Trex Co., Inc. (a)

       22,000       1,841,840
        

 

 

 
           9,952,313
        

 

 

 
Chemicals - 2.7%         

Compass Minerals International, Inc.

       31,740       1,958,993

Ferroglobe Representation & Warranty Insurance Trust (a)(c)

       302,970      

PQ Group Holdings, Inc.

       102,190       1,457,230

Quaker Chemical Corp.

       8,280       2,098,069
        

 

 

 
           5,514,292
        

 

 

 
Construction & Engineering - 0.9%         

NV5 Global, Inc. (a)

       23,342       1,838,883
        

 

 

 
Construction Materials - 0.9%         

Eagle Materials, Inc.

       18,500       1,874,975
        

 

 

 
Electronic Equipment & Instruments - 1.0%    

Novanta, Inc. (a)(b)

       16,290       1,925,804
        

 

 

 
Food Products - 1.9%         

Freshpet, Inc. (a)

       27,590       3,917,504
        

 

 

 
Health Care Equipment & Supplies - 7.0%    

Cantel Medical Corp.

       32,395       2,554,670

Mesa Laboratories, Inc.

       4,815       1,380,172

NeoGenomics, Inc. (a)

       73,675       3,966,662

SmileDirectClub, Inc. (a)

       71,860       858,008

STAAR Surgical Co. (a)

       52,525       4,161,030
COMMON STOCKS    Shares   Value
Health Care Equipment & Supplies - 7.0%, Continued    

ViewRay, Inc. (a)

       276,205     $ 1,055,103

Zynex, Inc. (a)

       10,000       134,600
        

 

 

 
           14,110,245
        

 

 

 
Health Care Providers & Services - 7.5%         

HealthEquity, Inc. (a)

       24,350       1,697,439

Medpace Holdings, Inc. (a)

       23,765       3,308,088

Omnicell, Inc. (a)

       18,320       2,198,766

Progyny, Inc. (a)

       53,370       2,262,354

R1 RCM, Inc. (a)

       156,665       3,763,093

U.S. Physical Therapy, Inc.

       16,015       1,925,804
        

 

 

 
           15,155,544
        

 

 

 
Health Care Technology - 0.6%         

Inovalon Holdings, Inc. - Class A (a)

       69,190       1,257,182
        

 

 

 
Hotels, Restaurants & Leisure - 3.7%         

Everi Holdings, Inc. (a)

       197,622       2,729,160

Red Rock Resorts, Inc. - Class A

       95,550       2,392,572

Wingstop, Inc.

       17,860       2,367,343
        

 

 

 
           7,489,075
        

 

 

 
Household Durables - 0.6%         

Century Communities, Inc. (a)

       28,040       1,227,591
        

 

 

 
Insurance - 4.7%         

Argo Group International Holdings, Ltd. (b)

       30,400       1,328,480

Goosehead Insurance, Inc. - Class A

       16,595       2,070,392

Kinsale Capital Group, Inc.

       14,330       2,867,863

Palomar Holdings, Inc. (a)

       35,920       3,191,133
        

 

 

 
           9,457,868
        

 

 

 
Internet & Catalog Retail - 3.5%         

Magnite, Inc. (a)

       229,625       7,051,784
        

 

 

 
IT Consulting & Services - 3.2%         

LiveRamp Holdings, Inc. (a)

       38,026       2,783,123

Perficient Inc. (a)

       46,145       2,198,810

Repay Holdings Corp. (a)

       58,085       1,582,816
        

 

 

 
           6,564,749
        

 

 

 
Leisure Equipment & Products - 2.3%         

Callaway Golf Company

       95,715       2,298,117

YETI Holdings, Inc. (a)

       35,570       2,435,478
        

 

 

 
           4,733,595
        

 

 

 
Machinery - 6.2%         

Alamo Group, Inc.

       10,360       1,429,162

Colfax Corp. (a)

       53,260       2,036,662

Evoqua Water Technologies Corp. (a)

       65,570       1,769,079

Helios Technologies, Inc.

       35,295       1,880,870

ITT, Inc.

       16,730       1,288,545

Rexnord Corp.

       60,995       2,408,693

Watts Water Technologies, Inc. - Class A

       13,865       1,687,370
        

 

 

 
           12,500,381
        

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

15


LKCM SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2020

 

COMMON STOCKS    Shares   Value
Marine - 0.2%         

Kirby Corp. (a)

       8,620     $ 446,775
        

 

 

 
Media & Entertainment - 1.6%         

Nexstar Media Group, Inc. - Class A

       22,925       2,503,181

Sinclair Broadcast Group, Inc. - Class A

       24,555       782,077
        

 

 

 
           3,285,258
        

 

 

 
Multiline Retail - 2.0%         

Five Below, Inc. (a)

       13,950       2,440,971

Ollie’s Bargain Outlet Holdings, Inc. (a)

       20,790       1,699,998
        

 

 

 
           4,140,969
        

 

 

 
Oil, Gas & Consumable Fuels - 0.4%         

HollyFrontier Corp.

       33,835       874,635
        

 

 

 
Personal Products - 0.8%         

BellRing Brands, Inc. - Class A (a)

       62,620       1,522,292
        

 

 

 
Pharmaceuticals - 0.8%         

Reata Pharmaceuticals, Inc. - Class A (a)

       13,160       1,626,839
        

 

 

 
Professional Services - 2.1%         

Upwork, Inc. (a)

       125,760       4,341,235
        

 

 

 
Real Estate Development - 1.8%         

FirstService Corp. (b)

       9,995       1,366,916

Newmark Group, Inc. - Class A

       298,143       2,173,463
        

 

 

 
           3,540,379
        

 

 

 
Real Estate Investment Trusts - 1.7%         

First Industrial Realty Trust, Inc.

       33,470       1,410,091

PotlatchDeltic Corp.

       41,675       2,084,584
        

 

 

 
           3,494,675
        

 

 

 
Software - 11.7%         

ACI Worldwide, Inc. (a)

       52,105       2,002,395

Altair Engineering, Inc. - Class A (a)

       36,190       2,105,534

Appian Corp. (a)

       12,855       2,083,667

Cloudera, Inc. (a)

       154,980       2,155,772

LivePerson, Inc. (a)

       41,745       2,597,791

Medallia, Inc. (a)

       68,155       2,264,109

Mimecast Ltd. (a)(b)

       33,270       1,891,067

Model N, Inc. (a)

       42,110       1,502,485

OneSpan Inc. (a)

       92,375       1,910,315

Q2 Holdings, Inc. (a)

       14,515       1,836,583

RealPage, Inc. (a)

       19,030       1,660,177

Workiva Inc. (a)

       19,285       1,766,892
        

 

 

 
           23,776,787
        

 

 

 
Software & Services - 2.0%         

Alarm.com Holdings, Inc. (a)

       22,430       2,320,384

Envestnet, Inc. (a)

       19,936       1,640,533
        

 

 

 
           3,960,917
        

 

 

 
Thrifts & Mortgage Finance - 1.8%         

Essent Group Ltd. (b)

       33,920       1,465,344

Home BancShares, Inc.

       106,661       2,077,756
        

 

 

 
           3,543,100
        

 

 

 
COMMON STOCKS    Shares   Value
Trading Companies & Distributors - 2.5%         

Systemax, Inc.

       71,915     $ 2,581,029

Textainer Group Holdings Ltd. (a)(b)

       130,328       2,499,691
        

 

 

 
           5,080,720
        

 

 

 
TOTAL COMMON STOCKS
(Cost $103,994,585)
       194,340,287
        

 

 

 
        
SHORT-TERM INVESTMENTS - 4.2%
Money Market Funds - 4.2%         

Invesco Short-Term Investments Trust -Government & Agency Portfolio -Institutional Shares, 0.03% (d)

       5,866,000       5,866,000

Morgan Stanley Institutional Liquidity Funds - Government Portfolio -Institutional Shares, 0.03% (d)

       2,633,145       2,633,145
        

 

 

 
           8,499,145
        

 

 

 
TOTAL SHORT-TERM INVESTMENTS
(Cost $8,499,145)
       8,499,145
        

 

 

 
Total Investments - 100.1%
(Cost $112,493,730)
       202,839,432

Liabilities in Excess of Other Assets - (0.1)%

 

      (161,018 )
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 202,678,414
        

 

 

 

 

(a)

Non-income producing security.

(b)

Security issued by non-U.S. incorporated company.

(c)

Securities for which market quotations are not readily available. These securities have been valued at their fair value under procedures approved by the Fund’s Board of Trustees. Level 3 security. (see Note A.1).

(d)

The rate quoted is the annualized seven-day yield of the fund at period end.

Investments are classified by industry pursuant to the Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of Morgan Stanley Capital International, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

 

 

The accompanying notes are an integral part of these financial statements.

 

16


LKCM SMALL-MID CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
December 31, 2020

 

COMMON STOCKS - 99.8%    Shares   Value
Aerospace & Defense - 4.1%         

Axon Enterprise, Inc. (a)

       3,045     $ 373,104

Mercury Systems, Inc. (a)

       2,870       252,732
        

 

 

 
           625,836
        

 

 

 
Banks - 5.9%         

Comerica, Inc.

       5,355       299,130

Cullen/Frost Bankers, Inc.

       3,280       286,114

Zions Bancorp N.A.

       7,145       310,379
        

 

 

 
           895,623
        

 

 

 
Biotechnology - 9.5%         

Charles River Laboratories International, Inc. (a)

       1,545       386,034

Emergent BioSolutions, Inc. (a)

       1,930       172,928

Exact Sciences Corp. (a)

       2,145       284,191

Iovance Biotherapeutics, Inc. (a)

       3,930       182,352

Natera, Inc. (a)

       2,470       245,814

Neogen Corp. (a)

       2,055       162,962
        

 

 

 
           1,434,281
        

 

 

 
Building Products - 4.6%         

Builders FirstSource, Inc. (a)

       7,475       305,055

Trex Co., Inc. (a)

       4,560       381,763
        

 

 

 
           686,818
        

 

 

 
Capital Markets - 2.1%         

LPL Financial Holdings, Inc.

       2,980       310,576
        

 

 

 
Chemicals - 2.4%         

Compass Minerals International, Inc.

       3,815       235,462

FMC Corp.

       1,150       132,169
        

 

 

 
           367,631
        

 

 

 
Diversified Consumer Services - 1.8%         

Chegg, Inc. (a)

       2,980       269,183
        

 

 

 
Electronic Equipment & Instruments - 2.1%    

Trimble, Inc. (a)

       4,810       321,164
        

 

 

 
Food Products - 3.4%         

Freshpet, Inc. (a)

       3,625       514,714
        

 

 

 
Health Care Equipment & Supplies - 5.0%    

NeoGenomics, Inc. (a)

       6,405       344,845

STAAR Surgical Co. (a)

       5,155       408,379
        

 

 

 
           753,224
        

 

 

 
Health Care Providers & Services - 3.2%         

Medpace Holdings, Inc. (a)

       1,955       272,136

Omnicell, Inc. (a)

       1,785       214,236
        

 

 

 
           486,372
        

 

 

 
Hotels, Restaurants & Leisure - 3.3%         

Churchill Downs, Inc.

       1,215       236,670

Wingstop, Inc.

       1,970       261,123
        

 

 

 
           497,793
        

 

 

 
COMMON STOCKS    Shares   Value
Insurance - 3.6%         

Kinsale Capital Group, Inc.

       1,495     $ 299,194

Palomar Holdings, Inc. (a)

       2,690       238,980
        

 

 

 
           538,174
        

 

 

 
IT Consulting & Services - 1.5%         

LiveRamp Holdings, Inc. (a)

       3,085       225,791
        

 

 

 
Leisure Equipment & Products - 3.7%         

Brunswick Corporation

       3,175       242,062

Pool Corp.

       865       322,212
        

 

 

 
           564,274
        

 

 

 
Machinery - 5.6%         

Colfax Corp. (a)

       6,385       244,162

IDEX Corp.

       885       176,292

ITT, Inc.

       2,075       159,817

Rexnord Corp.

       6,845       270,309
        

 

 

 
           850,580
        

 

 

 
Media & Entertainment - 1.9%         

Nexstar Media Group, Inc. - Class A

       2,635       287,716
        

 

 

 
Metals & Mining - 2.5%         

Royal Gold, Inc.

       550       58,498

Teck Resources Ltd. (b)

       17,535       318,260
        

 

 

 
           376,758
        

 

 

 
Multiline Retail - 3.3%         

Five Below, Inc. (a)

       1,790       313,214

Ollie’s Bargain Outlet Holdings, Inc. (a)

       2,310       188,889
        

 

 

 
           502,103
        

 

 

 
Oil, Gas & Consumable Fuels - 0.9%         

HollyFrontier Corp.

       5,505       142,304
        

 

 

 
Pharmaceuticals - 2.9%         

Horizon Therapeutics PLC (a)(b)

       3,580       261,877

Reata Pharmaceuticals, Inc. - Class A (a)

       1,385       171,214
        

 

 

 
           433,091
        

 

 

 
Professional Services - 3.1%         

Upwork, Inc. (a)

       13,485       465,502
        

 

 

 
Real Estate Development - 1.1%         

FirstService Corp. (b)

       1,235       168,899
        

 

 

 
Real Estate Investment Trusts - 2.4%         

First Industrial Realty Trust, Inc.

       3,415       143,874

PotlatchDeltic Corp.

       4,390       219,588
        

 

 

 
           363,462
        

 

 

 
Software - 15.8%         

Appian Corp. (a)

       2,395       388,206

Cloudera, Inc. (a)

       18,000       250,380

Fair Isaac Corp. (a)

       575       293,848

Five9, Inc. (a)

       2,235       389,784

Medallia, Inc. (a)

       7,560       251,143

Mimecast Ltd. (a)(b)

       3,425       194,677

OneSpan Inc. (a)

       7,240       149,723
 

 

The accompanying notes are an integral part of these financial statements.

 

17


LKCM SMALL-MID CAP EQUITY FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2020

 

COMMON STOCKS    Shares   Value
Software - 15.8%, Continued         

Q2 Holdings, Inc. (a)

       2,070     $ 261,917

RealPage, Inc. (a)

       2,370       206,759
        

 

 

 
           2,386,437
        

 

 

 
Software & Services - 1.4%         

Envestnet, Inc. (a)

       2,565       211,074
        

 

 

 
Thrifts & Mortgage Finance - 1.5%         

Essent Group Ltd. (b)

       5,045       217,944
        

 

 

 
Trading Companies & Distributors - 1.2%         

Watsco, Inc.

       795       180,107
        

 

 

 
TOTAL COMMON STOCKS
(Cost $9,106,638)
       15,077,431
        

 

 

 
        
SHORT-TERM INVESTMENT - 0.3%           
Money Market Fund - 0.3%         

Invesco Short-Term Investments Trust - Government & Agency Portfolio - Institutional Shares, 0.03% (c)

       46,722       46,722
        

 

 

 
TOTAL SHORT-TERM INVESTMENT
(Cost $46,722)
       46,722
        

 

 

 
Total Investments - 100.1%
(Cost $9,153,360)
       15,124,153

Liabilities in Excess of Other Assets - (0.1)%

 

      (15,798 )
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 15,108,355
        

 

 

 

 

(a)

Non-income producing security.

(b)

Security issued by non-U.S. incorporated company.

(c)

The rate quoted is the annualized seven-day yield of the fund at period end.

Investments are classified by industry pursuant to the Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of Morgan Stanley Capital International, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

 

 

The accompanying notes are an integral part of these financial statements.

 

18


LKCM EQUITY FUND
SCHEDULE OF INVESTMENTS
December 31, 2020

 

COMMON STOCKS - 94.8%    Shares   Value
Aerospace & Defense - 2.4%         

Honeywell International, Inc.

       50,000     $ 10,635,000
        

 

 

 
Banks - 4.2%         

Bank of America Corp.

       160,000       4,849,600

Comerica, Inc.

       100,000       5,586,000

Cullen/Frost Bankers, Inc.

       65,000       5,669,950

Glacier Bancorp, Inc.

       60,000       2,760,600
        

 

 

 
           18,866,150
        

 

 

 
Beverages - 3.4%         

The Coca-Cola Co.

       95,000       5,209,800

Keurig Dr Pepper, Inc.

       100,000       3,200,000

PepsiCo, Inc.

       45,000       6,673,500
        

 

 

 
           15,083,300
        

 

 

 
Biotechnology - 1.4%         

Amgen, Inc.

       28,000       6,437,760
        

 

 

 
Chemicals - 6.3%         

Air Products & Chemicals, Inc.

       30,200       8,251,244

Ecolab, Inc.

       45,000       9,736,200

FMC Corp.

       90,000       10,343,700
        

 

 

 
           28,331,144
        

 

 

 
Commercial Services & Supplies - 3.5%         

Cintas Corp.

       16,000       5,655,360

Waste Connections, Inc. (b)

       97,500       10,000,575
        

 

 

 
           15,655,935
        

 

 

 
Computers & Peripherals - 3.5%         

Apple, Inc.

       120,000       15,922,800
        

 

 

 
Construction Materials - 1.1%         

Martin Marietta Materials, Inc.

       18,000       5,111,460
        

 

 

 
Diversified Financials - 1.9%         

JPMorgan Chase & Co.

       68,000       8,640,760
        

 

 

 
Electrical Equipment & Instruments - 4.9%    

Franklin Electric Co., Inc.

       85,000       5,882,850

Rockwell Automation, Inc.

       25,000       6,270,250

Roper Technologies, Inc.

       23,000       9,915,070
        

 

 

 
           22,068,170
        

 

 

 
Electronic Equipment & Instruments - 2.8%    

National Instruments Corp.

       55,000       2,416,700

Trimble, Inc. (a)

       150,000       10,015,500
        

 

 

 
           12,432,200
        

 

 

 
Food Products - 0.7%         

Mondelez International, Inc. - Class A

       54,000       3,157,380
        

 

 

 
Health Care Equipment & Supplies - 9.6%    

Alcon, Inc. (a)(b)

       60,000       3,958,800

Danaher Corp.

       50,000       11,107,000

PerkinElmer, Inc.

       90,000       12,915,000

Stryker Corp.

       20,000       4,900,800

Thermo Fisher Scientific, Inc.

       22,000       10,247,160
        

 

 

 
           43,128,760
        

 

 

 
COMMON STOCKS    Shares   Value
Household Products - 2.4%         

Kimberly-Clark Corp.

       50,000     $ 6,741,500

The Procter & Gamble Co.

       30,000       4,174,200
        

 

 

 
           10,915,700
        

 

 

 
Internet & Catalog Retail - 3.6%         

Amazon.com, Inc. (a)

       5,000       16,284,650
        

 

 

 
IT Consulting & Services - 3.1%         

PayPal Holdings, Inc. (a)

       60,000       14,052,000
        

 

 

 
Machinery - 8.1%         

Generac Holdings, Inc. (a)

       50,000       11,370,500

IDEX Corp.

       20,000       3,984,000

The Toro Co.

       74,000       7,018,160

Valmont Industries, Inc.

       45,000       7,871,850

Xylem, Inc.

       60,000       6,107,400
        

 

 

 
           36,351,910
        

 

 

 
Media & Entertainment - 3.7%         

Alphabet, Inc. - Class A (a)

       5,500       9,639,520

Facebook, Inc. - Class A (a)

       25,000       6,829,000
        

 

 

 
           16,468,520
        

 

 

 
Metals & Mining - 1.7%         

Newmont Goldcorp Corp.

       130,000       7,785,700
        

 

 

 
Oil & Gas & Consumable Fuels - 2.3%         

Cabot Oil & Gas Corp.

       260,000       4,232,800

Chevron Corp.

       31,500       2,660,175

ConocoPhillips

       87,000       3,479,130
        

 

 

 
           10,372,105
        

 

 

 
Personal Products - 1.5%         

The Estee Lauder Cos., Inc. - Class A

       25,000       6,654,750
        

 

 

 
Pharmaceuticals - 4.4%         

Merck & Co., Inc.

       80,000       6,544,000

Pfizer, Inc.

       115,000       4,233,150

Zoetis, Inc.

       53,500       8,854,250
        

 

 

 
           19,631,400
        

 

 

 
Road & Rail - 2.9%         

Kansas City Southern

       40,000       8,165,200

Union Pacific Corp.

       24,000       4,997,280
        

 

 

 
           13,162,480
        

 

 

 
Software - 9.6%         

Adobe, Inc. (a)

       28,000       14,003,360

Microsoft Corp.

       80,000       17,793,600

Oracle Corp.

       90,000       5,822,100

RealPage, Inc. (a)

       35,000       3,053,400

Sprout Social, Inc. - Class A (a)

       55,000       2,497,550
        

 

 

 
           43,170,010
        

 

 

 
Software & Services - 2.1%         

Akamai Technologies, Inc. (a)

       90,000       9,449,100
        

 

 

 
Specialty Retail - 1.8%         

The Home Depot, Inc.

       30,000       7,968,600
        

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

19


LKCM EQUITY FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2020

 

COMMON STOCKS    Shares   Value
Textiles, Apparel & Luxury Goods - 1.9%    

VF Corp.

       100,000     $ 8,541,000
        

 

 

 
TOTAL COMMON STOCKS
(Cost $184,730,986)
       426,278,744
        

 

 

 
        
U.S. GOVERNMENT ISSUE - 1.0%    Principal
Amount
    
U.S. Treasury Note - 1.0%         

2.125%, 05/31/2021

     $ 4,300,000       4,335,113
        

 

 

 

TOTAL U.S. GOVERNMENT ISSUE
(Cost $4,331,807)

           4,335,113
        

 

 

 
        
SHORT-TERM INVESTMENTS - 4.2%    Shares     
Money Market Funds - 4.2%         

Invesco Short-Term Investments Trust - Government & Agency Portfolio - Institutional Shares, 0.03% (c)

       13,381,000       13,381,000

Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Shares, 0.03% (c)

       5,652,904       5,652,904
        

 

 

 
           19,033,904
        

 

 

 
TOTAL SHORT-TERM INVESTMENTS
(Cost $19,033,904)
  19,033,904
        

 

 

 
Total Investments - 100.0%
(Cost $208,096,697)
       449,647,761

Other Assets in Excess of Liabilities - 0.0%

 

      5,173
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 449,652,934
        

 

 

 

 

(a)

Non-income producing security.

(b)

Security issued by non-U.S. incorporated company.

(c)

The rate quoted is the annualized seven-day yield of the fund at period end.

Investments are classified by industry pursuant to the Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of Morgan Stanley Capital International, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

 

 

The accompanying notes are an integral part of these financial statements.

 

20


LKCM BALANCED FUND
SCHEDULE OF INVESTMENTS
December 31, 2020

 

COMMON STOCKS - 69.4%    Shares   Value
Aerospace & Defense - 2.0%         

Honeywell International, Inc.

       6,100     $ 1,297,470

L3Harris Technologies, Inc.

       6,300       1,190,826
        

 

 

 
           2,488,296
        

 

 

 
Banks - 3.0%         

Bank of America Corp.

       55,000       1,667,050

Cullen/Frost Bankers, Inc.

       11,900       1,038,037

Zions Bancorp N.A.

       23,500       1,020,840
        

 

 

 
           3,725,927
        

 

 

 
Beverages - 2.0%         

The Coca-Cola Co.

       28,100       1,541,004

PepsiCo, Inc.

       6,700       993,610
        

 

 

 
           2,534,614
        

 

 

 
Biotechnology - 1.1%         

Charles River Laboratories International, Inc. (a)

       5,700       1,424,202
        

 

 

 
Chemicals - 5.5%         

Air Products and Chemicals, Inc.

       5,000       1,366,100

Corteva, Inc.

       20,358       788,262

DuPont de Nemours, Inc.

       8,158       580,115

Ecolab, Inc.

       5,900       1,276,524

FMC Corp.

       12,600       1,448,118

Linde PLC (b)

       5,500       1,449,305
        

 

 

 
           6,908,424
        

 

 

 
Commercial Services & Supplies - 2.8%         

Cintas Corp.

       4,000       1,413,840

Waste Connections, Inc. (b)

       9,500       974,415

Waste Management, Inc.

       10,000       1,179,300
        

 

 

 
           3,567,555
        

 

 

 
Communications Equipment - 1.9%         

QUALCOMM, Inc.

       15,300       2,330,802
        

 

 

 
Computers & Peripherals - 2.0%         

Apple, Inc.

       19,200       2,547,648
        

 

 

 
Construction Materials - 0.9%         

Martin Marietta Materials, Inc.

       4,100       1,164,277
        

 

 

 
Diversified Financials - 2.0%         

JPMorgan Chase & Co.

       11,500       1,461,305

Moody’s Corp.

       3,800       1,102,912
        

 

 

 
           2,564,217
        

 

 

 
Diversified Telecommunication Services - 1.5%    

AT&T, Inc.

       32,189       925,755

Verizon Communications, Inc.

       15,841       930,659
        

 

 

 
           1,856,414
        

 

 

 
Electrical Equipment & Instruments - 1.8%    

Emerson Electric Co.

       13,400       1,076,958

Rockwell Automation, Inc.

       4,500       1,128,645
        

 

 

 
           2,205,603
        

 

 

 
COMMON STOCKS    Shares   Value
Electronic Equipment & Instruments - 1.5%    

FLIR Systems, Inc.

       2,500     $ 109,575

National Instruments Corp.

       12,800       562,432

Trimble, Inc. (a)

       18,100       1,208,537
        

 

 

 
           1,880,544
        

 

 

 
Food & Drug Retailing - 0.9%         

Walmart, Inc.

       7,900       1,138,785
        

 

 

 
Food Products - 0.6%         

Mondelez International, Inc. - Class A

       12,400       725,028
        

 

 

 
Health Care Equipment & Supplies - 4.5%    

Alcon, Inc. (a)(b)

       20,800       1,372,384

Becton, Dickinson & Co.

       1,600       400,352

Danaher Corp.

       6,000       1,332,840

PerkinElmer, Inc.

       10,100       1,449,350

Thermo Fisher Scientific, Inc.

       2,400       1,117,872
        

 

 

 
           5,672,798
        

 

 

 
Household Products - 1.8%         

Colgate-Palmolive Co.

       11,900       1,017,569

Kimberly-Clark Corp.

       6,000       808,980

The Procter & Gamble Co.

       3,500       486,990
        

 

 

 
           2,313,539
        

 

 

 
Internet & Catalog Retail - 1.2%         

Amazon.com, Inc. (a)

       450       1,465,619
        

 

 

 
IT Consulting & Services - 4.8%         

Black Knight, Inc. (a)

       18,400       1,625,640

Broadridge Financial Solutions, Inc.

       10,200       1,562,640

PayPal Holdings, Inc. (a)

       6,600       1,545,720

Visa, Inc. - Class A

       6,100       1,334,253
        

 

 

 
           6,068,253
        

 

 

 
Machinery - 1.5%         

Fortive Corp.

       10,100       715,282

Xylem, Inc.

       11,000       1,119,690
        

 

 

 
           1,834,972
        

 

 

 
Media & Entertainment - 5.4%         

Alphabet, Inc. - Class C (a)

       875       1,532,895

Facebook, Inc. - Class A (a)

       4,700       1,283,852

Pinterest, Inc. - Class A (a)

       34,450       2,270,255

The Walt Disney Co. (a)

       9,500       1,721,210
        

 

 

 
           6,808,212
        

 

 

 
Metals & Mining - 0.7%         

Newmont Goldcorp Corp.

       15,000       898,350
        

 

 

 
Oil & Gas & Consumable Fuels - 2.5%         

Cabot Oil & Gas Corp.

       25,900       421,652

Chevron Corp.

       11,295       953,863

ConocoPhillips

       17,900       715,821

EOG Resources, Inc.

       5,800       289,246

Pioneer Natural Resources Co.

       6,100       694,729
        

 

 

 
           3,075,311
        

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

21


LKCM BALANCED FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2020

 

COMMON STOCKS        
Shares
  Value
Personal Products - 0.8%         

The Estee Lauder Cos., Inc. - Class A

       4,000     $ 1,064,760
        

 

 

 
Pharmaceuticals - 3.7%         

Abbott Laboratories

       10,800       1,182,492

Merck & Co., Inc.

       16,400       1,341,520

Pfizer, Inc.

       18,100       666,261

Zoetis, Inc.

       8,626       1,427,603
        

 

 

 
           4,617,876
        

 

 

 
Real Estate Investment Trusts - 1.1%         

American Tower Corp.

       5,900       1,324,314
        

 

 

 
Road & Rail - 0.8%         

Union Pacific Corp.

       5,100       1,061,922
        

 

 

 
Software - 6.4%         

Adobe, Inc. (a)

       2,500       1,250,300

Microsoft Corp.

       9,800       2,179,716

Oracle Corp.

       17,800       1,151,482

RealPage, Inc. (a)

       20,900       1,823,316

salesforce.com, Inc. (a)

       7,400       1,646,722
        

 

 

 
           8,051,536
        

 

 

 
Software & Services - 1.2%         

Akamai Technologies, Inc. (a)

       13,800       1,448,862
        

 

 

 
Specialty Retail - 1.1%         

The Home Depot, Inc.

       5,300       1,407,786
        

 

 

 
Textiles, Apparel & Luxury Goods - 2.4%    

NIKE, Inc. - Class B

       10,800       1,527,876

VF Corp.

       16,700       1,426,347
        

 

 

 
           2,954,223
        

 

 

 

TOTAL COMMON STOCKS
(Cost $50,708,057)

           87,130,669
        

 

 

 
        
CORPORATE BONDS - 28.9%    Principal
Amount
    
Aerospace & Defense - 0.8%         

Honeywell International, Inc.

        

1.350%, 06/01/2025

        

Callable 05/01/2025

     $ 750,000       777,392

Raytheon Technologies Corp.

        

3.700%, 12/15/2023

        

Callable 09/15/2023

       250,000       272,021
        

 

 

 
           1,049,413
        

 

 

 
Air Freight & Logistics - 0.5%         

United Parcel Service, Inc.

        

2.450%, 10/01/2022

       600,000       622,730
        

 

 

 
Banks - 2.2%         

Bank of America Corp.
3.300%, 01/11/2023

       500,000       530,261

Comerica Bank
2.500%, 07/23/2024

       300,000       319,356
CORPORATE BONDS    Principal
Amount
  Value
Banks - 2.2%, Continued         

Comerica, Inc.

        

3.700%, 07/31/2023

        

Callable 06/30/2023

     $ 475,000     $ 512,943

The Bank of New York Mellon Corp.

        

2.200%, 08/16/2023

        

Callable 06/16/2023

       200,000       209,608

Truist Bank:

        

3.200%, 04/01/2024

        

Callable 03/01/2024

         250,000       271,489

4.050%, 11/03/2025

        

Callable 09/03/2025

       385,000       444,557

3.300%, 05/15/2026

        

Callable 04/15/2026

       400,000       447,924
        

 

 

 
           2,736,138
        

 

 

 
Beverages - 0.7%         

PepsiCo, Inc.:

        

3.000%, 08/25/2021

       415,000       422,690

2.375%, 10/06/2026

        

Callable 07/06/2026

       435,000       474,834
        

 

 

 
           897,524
        

 

 

 
Biotechnology - 1.4%         

AbbVie, Inc.:

        

2.850%, 05/14/2023

        

Callable 03/14/2023

       250,000       262,941

3.200%, 05/14/2026

        

Callable 02/14/2026

       600,000       665,208

Amgen, Inc.:

        

2.700%, 05/01/2022

        

Callable 03/01/2022

       325,000       334,462

3.625%, 05/22/2024

        

Callable 02/22/2024

       250,000       274,539

2.600%, 08/19/2026

        

Callable 05/19/2026

       200,000       218,509
        

 

 

 
           1,755,659
        

 

 

 
Chemicals - 1.0%         

Air Products and Chemicals, Inc.

        

1.850%, 05/15/2027

        

Callable 03/15/2027

       675,000       715,122

Ecolab, Inc.

        

3.250%, 01/14/2023

        

Callable 11/14/2022

       500,000       526,538
        

 

 

 
             1,241,660
        

 

 

 
Communications Equipment - 1.1%         

Cisco Systems, Inc.

        

2.200%, 09/20/2023

        

Callable 07/20/2023

       750,000       785,573

QUALCOMM, Inc.

        

2.900%, 05/20/2024

        

Callable 03/20/2024

       600,000       646,445
        

 

 

 
           1,432,018
        

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

22


LKCM BALANCED FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2020

 

CORPORATE BONDS    Principal
Amount
  Value
Computers & Peripherals - 0.7%         

Apple, Inc.:

        

2.850%, 05/06/2021

     $ 500,000     $ 504,081

2.500%, 02/09/2025

       250,000       270,073

3.200%, 05/13/2025

       55,000       61,386
        

 

 

 
           835,540
        

 

 

 
Consumer Finance - 0.7%         

American Express Co.:

        

3.400%, 02/27/2023

        

Callable 01/27/2023

       125,000       132,985

3.700%, 08/03/2023

        

Callable 07/03/2023

       300,000       325,023

3.000%, 10/30/2024

        

Callable 09/29/2024

       350,000       382,473
        

 

 

 
           840,481
        

 

 

 
Diversified Financials - 0.7%         

JPMorgan Chase & Co.:

        

3.250%, 09/23/2022

       100,000       105,207

3.375%, 05/01/2023

       225,000       240,561

3.875%, 02/01/2024

       275,000       302,930

3.200%, 06/15/2026

        

Callable 03/15/2026

       200,000       223,835
        

 

 

 
           872,533
        

 

 

 
Diversified Telecommunication Services - 1.3%    

AT&T, Inc.

        

3.400%, 05/15/2025

        

Callable 02/15/2025

       750,000       833,912

Verizon Communications, Inc.:

        

2.450%, 11/01/2022

        

Callable 08/01/2022

       500,000       516,879

3.500%, 11/01/2024

        

Callable 08/01/2024

         250,000       276,271
        

 

 

 
           1,627,062
        

 

 

 
Electrical Equipment & Instruments - 1.2%

Emerson Electric Co.:

        

2.625%, 02/15/2023

        

Callable 11/15/2022

       400,000       417,380

3.150%, 06/01/2025

        

Callable 03/01/2025

       200,000       221,357

Roper Technologies, Inc.:

        

2.800%, 12/15/2021

        

Callable 11/15/2021

       600,000       612,898

1.000%, 09/15/2025

        

Callable 08/15/2025

       250,000       253,188
        

 

 

 
           1,504,823
        

 

 

 
Electronic Equipment & Instruments - 0.4%    

Trimble, Inc.

        

4.150%, 06/15/2023

        

Callable 05/15/2023

       500,000       541,982
        

 

 

 
CORPORATE BONDS    Principal
Amount
  Value
Food & Drug Retailing - 0.6%         

Walmart, Inc.

        

3.550%, 06/26/2025

        

Callable 04/26/2025

     $ 700,000     $ 792,969
        

 

 

 
Food & Staples Retailing - 0.6%         

Costco Wholesale Corp.

        

1.375%, 06/20/2027

        

Callable 04/20/2027

       690,000       711,757
        

 

 

 
Health Care Equipment & Supplies - 0.8%

Danaher Corp.

        

3.350%, 09/15/2025

        

Callable 06/15/2025

       250,000       280,061

Thermo Fisher Scientific, Inc.

        

3.000%, 04/15/2023

        

Callable 02/15/2023

       705,000       744,278
        

 

 

 
           1,024,339
        

 

 

 
Hotels, Restaurants & Leisure - 0.5%         

McDonald’s Corp.:

        

3.625%, 05/20/2021

       100,000       101,257

1.450%, 09/01/2025

        

Callable 08/01/2025

         500,000       518,963
        

 

 

 
           620,220
        

 

 

 
Internet & Catalog Retail - 0.8%         

Amazon.com, Inc.:

        

3.300%, 12/05/2021

        

Callable 10/05/2021

       695,000       711,096

1.200%, 06/03/2027

        

Callable 04/03/2027

       260,000       265,556
        

 

 

 
           976,652
        

 

 

 
Machinery - 0.6%         

Illinois Tool Works, Inc.

        

3.500%, 03/01/2024

        

Callable 12/01/2023

       715,000       778,292
        

 

 

 
Media & Entertainment - 1.2%         

Alphabet, Inc.:

        

3.375%, 02/25/2024

       600,000       657,073

1.998%, 08/15/2026

        

Callable 05/15/2026

       200,000       214,609

The Walt Disney Co.

        

1.750%, 08/30/2024

        

Callable 07/30/2024

       665,000       693,874
        

 

 

 
           1,565,556
        

 

 

 
Oil & Gas & Consumable Fuels - 3.7%         

Chevron Corp.:

        

2.411%, 03/03/2022

        

Callable 01/03/2022

       500,000       510,975

1.995%, 05/11/2027

        

Callable 03/11/2027

       400,000       424,567

ConocoPhillips

        

2.400%, 12/15/2022

        

Callable 09/15/2022

       490,000       507,093
 

 

The accompanying notes are an integral part of these financial statements.

 

23


LKCM BALANCED FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2020

 

CORPORATE BONDS    Principal
Amount
  Value
Oil & Gas & Consumable Fuels - 3.7%, Continued

Enterprise Products Operating, LLC

        

3.750%, 02/15/2025

        

Callable 11/15/2024

     $ 300,000     $ 336,266

EOG Resources, Inc.

        

2.625%, 03/15/2023

        

Callable 12/15/2022

       600,000       626,498

Exxon Mobil Corp.:

        

2.709%, 03/06/2025

        

Callable 12/06/2024

       255,000       275,470

3.043%, 03/01/2026

        

Callable 12/01/2025

       400,000       443,497

Kinder Morgan Energy Partners, L.P.

        

3.950%, 09/01/2022

        

Callable 06/01/2022

       400,000       419,948

Kinder Morgan, Inc.

        

3.150%, 01/15/2023

        

Callable 12/15/2022

       500,000       526,005

Schlumberger Investment SA (b)

        

3.650%, 12/01/2023

        

Callable 09/01/2023

         500,000       543,096
        

 

 

 
           4,613,415
        

 

 

 
Personal Products - 0.7%         

The Estee Lauder Cos., Inc.

        

2.000%, 12/01/2024

        

Callable 11/01/2024

       805,000       851,377
        

 

 

 
Pharmaceuticals - 2.6%         

Abbott Laboratories:

        

3.400%, 11/30/2023

        

Callable 09/30/2023

       480,000       520,731

3.875%, 09/15/2025

        

Callable 06/15/2025

       255,000       292,357

Bristol-Myers Squibb Co.

        

3.625%, 05/15/2024

        

Callable 02/15/2024

       250,000       274,201

Johnson & Johnson

        

0.550%, 09/01/2025

        

Callable 08/01/2025

       735,000       738,683

Merck & Co., Inc.

        

2.350%, 02/10/2022

       650,000       664,999

Pfizer, Inc.

        

0.800%, 05/28/2025

        

Callable 04/28/2025

       800,000       814,805
        

 

 

 
           3,305,776
        

 

 

 
Real Estate Investment Trusts - 0.8%         

American Tower Corp.:

        

2.400%, 03/15/2025

        

Callable 02/15/2025

       300,000       319,076

3.375%, 10/15/2026

        

Callable 07/15/2026

       635,000       713,874
        

 

 

 
           1,032,950
        

 

 

 
Road & Rail - 0.7%         

Burlington Northern Santa Fe, LLC

        

3.000%, 03/15/2023

        

Callable 12/15/2022

       600,000       630,490
CORPORATE BONDS    Principal
Amount
  Value
Road & Rail - 0.7%, Continued         

Union Pacific Corp.

        

3.750%, 07/15/2025

        

Callable 05/15/2025

     $ 200,000     $ 227,173
        

 

 

 
           857,663
        

 

 

 
Semiconductor Equipment & Products - 0.5%    

Intel Corp.

        

3.700%, 07/29/2025

        

Callable 04/29/2025

       500,000       566,108
        

 

 

 
Software - 1.4%         

Adobe, Inc.

        

1.900%, 02/01/2025

        

Callable 01/01/2025

       700,000       740,675

Microsoft Corp.:

        

2.375%, 02/12/2022

        

Callable 01/12/2022

       400,000       408,996

3.125%, 11/03/2025

        

Callable 08/03/2025

       230,000       257,291

Oracle Corp.

        

2.500%, 04/01/2025

        

Callable 03/01/2025

       300,000       322,683
        

 

 

 
           1,729,645
        

 

 

 
Specialty Retail - 0.7%         

The Home Depot, Inc.:

        

2.625%, 06/01/2022

        

Callable 05/01/2022

       290,000       299,113

2.800%, 09/14/2027

        

Callable 06/14/2027

       500,000       557,194
        

 

 

 
           856,307
        

 

 

 

TOTAL CORPORATE BONDS
(Cost $34,722,616)

           36,240,589
        

 

 

 
        
SHORT-TERM INVESTMENT - 1.7%    Shares     
Money Market Fund - 1.7%         

Invesco Short-Term Investments Trust - Government & Agency Portfolio -Institutional Shares, 0.03% (c)

       2,198,409       2,198,409
        

 

 

 

TOTAL SHORT-TERM INVESTMENT
(Cost $2,198,409)

 

      2,198,409
        

 

 

 

Total Investments - 100.0%
(Cost $87,629,082)

           125,569,667

Liabilities in Excess of Other Assets - 0.0%

 

      (62,669 )
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 125,506,998
        

 

 

 

 

(a)

Non-income producing security.

(b)

Security issued by non-U.S. incorporated company.

(c)

The rate quoted is the annualized seven-day yield of the fund at period end.

Investments are classified by industry pursuant to the Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of Morgan Stanley Capital International, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

 

 

The accompanying notes are an integral part of these financial statements.

 

24


LKCM FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
December 31, 2020

 

CORPORATE BONDS - 78.3%    Principal
Amount
  Value
Aerospace & Defense - 1.9%         

Honeywell International, Inc.:

        

2.300%, 08/15/2024

        

Callable 07/15/2024

     $ 400,000     $ 426,687

1.350%, 06/01/2025

        

Callable 05/01/2025

       3,000,000       3,109,569

Raytheon Technologies Corp.

        

3.700%, 12/15/2023

        

Callable 09/15/2023

       1,750,000       1,904,147
        

 

 

 
           5,440,403
        

 

 

 
Air Freight & Logistics - 1.1%         

United Parcel Service, Inc.

        

2.450%, 10/01/2022

       3,000,000       3,113,648
        

 

 

 
Banks - 6.9%         

Bank of America Corp.:

        

2.625%, 04/19/2021

       1,704,000       1,715,964

4.450%, 03/03/2026

       2,000,000       2,332,192

Comerica, Inc.

        

3.700%, 07/31/2023

        

Callable 06/30/2023

       2,000,000       2,159,759

The Bank of New York Mellon Corp.

        

2.800%, 05/04/2026

        

Callable 02/04/2026

       300,000       331,067

Truist Bank:

        

2.625%, 01/15/2022

        

Callable 12/15/2021

       3,700,000       3,783,763

3.200%, 04/01/2024

        

Callable 03/01/2024

       2,500,000       2,714,891

3.300%, 05/15/2026

        

Callable 04/15/2026

       4,333,000       4,852,131

Wells Fargo & Co.

        

4.125%, 08/15/2023

       2,000,000       2,186,019
        

 

 

 
           20,075,786
        

 

 

 
Biotechnology - 2.2%         

Amgen, Inc.:

        

2.600%, 08/19/2026

        

Callable 05/19/2026

       1,000,000       1,092,543

2.200%, 02/21/2027

        

Callable 12/21/2026

       5,000,000       5,363,069
        

 

 

 
           6,455,612
        

 

 

 
Chemicals - 2.1%         

Air Products and Chemicals, Inc.

        

1.850%, 05/15/2027

        

Callable 03/15/2027

       4,000,000       4,237,760

Ecolab, Inc.

        

2.375%, 08/10/2022

        

Callable 07/10/2022

       1,925,000       1,985,227
        

 

 

 
           6,222,987
        

 

 

 
CORPORATE BONDS    Principal
Amount
  Value
Communications Equipment - 1.5%         

QUALCOMM, Inc.

        

2.900%, 05/20/2024

        

Callable 03/20/2024

     $ 4,000,000     $ 4,309,631
        

 

 

 
           4,309,631
        

 

 

 
Computers & Peripherals - 2.1%         

Apple, Inc.:

        

2.400%, 05/03/2023

       3,250,000       3,410,297

2.500%, 02/09/2025

         2,515,000       2,716,935
        

 

 

 
           6,127,232
        

 

 

 
Consumer Finance - 1.6%         

American Express Co.:

        

3.000%, 10/30/2024

        

Callable 09/29/2024

       2,000,000       2,185,562

4.200%, 11/06/2025

        

Callable 10/06/2025

       2,000,000       2,324,664
        

 

 

 
           4,510,226
        

 

 

 
Containers & Packaging - 2.4%         

Ball Corp.:

        

5.000%, 03/15/2022

       2,000,000       2,096,950

5.250%, 07/01/2025

       4,252,000       4,860,483
        

 

 

 
           6,957,433
        

 

 

 
Diversified Financials - 4.3%         

JPMorgan Chase & Co.:

        

3.375%, 05/01/2023

       3,788,000       4,049,984

2.700%, 05/18/2023

        

Callable 03/18/2023

       1,855,000       1,950,665

3.875%, 02/01/2024

       1,750,000       1,927,736

3.300%, 04/01/2026

        

Callable 01/01/2026

       3,500,000       3,919,997

3.200%, 06/15/2026

        

Callable 03/15/2026

       636,000       711,795
        

 

 

 
           12,560,177
        

 

 

 
Diversified Telecommunication Services - 7.6%    

AT&T, Inc.:

        

3.800%, 02/15/2027

        

Callable 11/15/2026

       2,000,000       2,303,695

4.250%, 03/01/2027

        

Callable 12/01/2026

       4,000,000       4,681,417

2.300%, 06/01/2027

        

Callable 04/01/2027

       3,000,000       3,203,346

4.100%, 02/15/2028

        

Callable 11/15/2027

       2,000,000       2,353,472

Verizon Communications, Inc.:

        

2.450%, 11/01/2022

        

Callable 08/01/2022

       1,750,000       1,809,078

3.500%, 11/01/2024

        

Callable 08/01/2024

       1,750,000       1,933,895

2.625%, 08/15/2026

       3,000,000       3,289,898

4.125%, 03/16/2027

       2,000,000       2,358,692
        

 

 

 
           21,933,493
        

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

25


LKCM FIXED INCOME FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2020

 

CORPORATE BONDS    Principal
Amount
  Value
Electrical Equipment & Instruments - 2.8%    

Emerson Electric Co.:

        

2.625%, 12/01/2021

        

Callable 11/01/2021

     $ 950,000     $ 968,394

3.150%, 06/01/2025

        

Callable 03/01/2025

       5,000,000       5,533,916

Rockwell Automation, Inc.

        

2.875%, 03/01/2025

        

Callable 12/01/2024

       1,440,000       1,562,720
        

 

 

 
           8,065,030
        

 

 

 
Electronic Equipment & Instruments - 1.7%    

Trimble, Inc.

        

4.150%, 06/15/2023

        

Callable 05/15/2023

       4,500,000       4,877,841
        

 

 

 
Health Care Equipment & Supplies - 6.3%    

Danaher Corp.

        

3.350%, 09/15/2025

        

Callable 06/15/2025

         5,500,000       6,161,337

Thermo Fisher Scientific, Inc.:

        

3.000%, 04/15/2023

        

Callable 02/15/2023

       2,475,000       2,612,890

4.150%, 02/01/2024

        

Callable 11/01/2023

       4,500,000       4,966,537

2.950%, 09/19/2026

        

Callable 06/19/2026

       4,000,000       4,462,487
        

 

 

 
           18,203,251
        

 

 

 
Health Care Providers & Services - 0.7%    

CVS Health Corp.

        

4.125%, 05/15/2021

        

Callable 02/15/2021

       2,000,000       2,004,102
        

 

 

 
Household Products - 0.3%         

The Procter & Gamble Co.

        

8.000%, 09/01/2024

       775,000       979,689
        

 

 

 
Internet & Catalog Retail - 2.9%         

Amazon.com, Inc.:

        

2.500%, 11/29/2022

        

Callable 08/29/2022

       5,000,000       5,193,842

1.200%, 06/03/2027

        

Callable 04/03/2027

       3,030,000       3,094,745
        

 

 

 
           8,288,587
        

 

 

 
Media & Entertainment - 2.1%         

Alphabet, Inc.:

        

3.375%, 02/25/2024

       4,000,000       4,380,491

1.998%, 08/15/2026

        

Callable 05/15/2026

       1,725,000       1,851,002
        

 

 

 
           6,231,493
        

 

 

 
Multiline Retail - 1.6%         

Family Dollar Stores, Inc.

        

5.000%, 02/01/2021

       4,500,000       4,513,602
        

 

 

 
CORPORATE BONDS    Principal
Amount
  Value
Oil & Gas & Consumable Fuels - 5.4%    

Chevron Corp.:

        

2.411%, 03/03/2022

        

Callable 01/03/2022

     $ 1,450,000     $ 1,481,828

2.355%, 12/05/2022

        

Callable 09/05/2022

       1,000,000       1,036,152

2.954%, 05/16/2026

        

Callable 02/16/2026

       1,870,000       2,075,706

Enterprise Products Operating, LLC:

        

2.800%, 02/15/2021

       2,000,000       2,005,669

2.850%, 04/15/2021

        

Callable 03/15/2021

       2,500,000       2,512,304

3.750%, 02/15/2025

        

Callable 11/15/2024

         2,963,000       3,321,183

Kinder Morgan Energy Partners, L.P.

        

4.250%, 09/01/2024

        

Callable 06/01/2024

       3,000,000       3,353,697
        

 

 

 
           15,786,539
        

 

 

 
Personal Products - 0.1%         

The Estee Lauder Cos., Inc.

        

2.000%, 12/01/2024

        

Callable 11/01/2024

       321,000       339,493
        

 

 

 
Pharmaceuticals - 4.5%         

Abbott Laboratories:

        

3.400%, 11/30/2023

        

Callable 09/30/2023

       1,750,000       1,898,499

2.950%, 03/15/2025

        

Callable 12/15/2024

       3,925,000       4,309,022

Bristol-Myers Squibb Co.

        

3.625%, 05/15/2024

        

Callable 02/15/2024

       4,750,000       5,209,821

Zoetis, Inc.

        

3.250%, 02/01/2023

        

Callable 11/01/2022

       1,664,000       1,751,432
        

 

 

 
           13,168,774
        

 

 

 
Real Estate Investment Trusts - 3.8%         

American Tower Corp.:

        

3.500%, 01/31/2023

       3,500,000       3,712,831

5.000%, 02/15/2024

       2,500,000       2,830,710

3.375%, 10/15/2026

        

Callable 07/15/2026

       4,030,000       4,530,567
        

 

 

 
           11,074,108
        

 

 

 
Road & Rail - 4.3%         

Burlington Northern Santa Fe, LLC:

        

3.000%, 03/15/2023

        

Callable 12/15/2022

       4,695,000       4,933,588

3.000%, 04/01/2025

        

Callable 01/01/2025

       2,250,000       2,468,242

Union Pacific Corp.:

        

3.250%, 01/15/2025

        

Callable 10/15/2024

       1,500,000       1,640,396
 

 

The accompanying notes are an integral part of these financial statements.

 

26


LKCM FIXED INCOME FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2020

 

CORPORATE BONDS    Principal
Amount
  Value
Road & Rail - 4.3%, Continued         

3.750%, 07/15/2025

        

Callable 05/15/2025

     $ 3,025,000     $ 3,435,990
        

 

 

 
           12,478,216
        

 

 

 
Semiconductor Equipment & Products - 0.9%

Intel Corp.

        

3.700%, 07/29/2025

        

Callable 04/29/2025

       2,250,000       2,547,487
        

 

 

 
Software - 5.2%         

Adobe, Inc.

        

1.900%, 02/01/2025

        

Callable 01/01/2025

       4,280,000       4,528,700

Oracle Corp.:

        

2.500%, 10/15/2022

         3,000,000       3,119,394

2.650%, 07/15/2026

        

Callable 04/15/2026

       2,000,000       2,200,602

3.250%, 11/15/2027

        

Callable 08/15/2027

       4,500,000       5,138,004
        

 

 

 
           14,986,700
        

 

 

 
Specialty Retail - 2.0%         

The Home Depot, Inc.:

        

2.700%, 04/01/2023

        

Callable 01/01/2023

       2,750,000       2,885,116

2.950%, 06/15/2029

        

Callable 03/15/2029

       2,500,000       2,843,808
        

 

 

 
           5,728,924
        

 

 

 

TOTAL CORPORATE BONDS
(Cost $213,993,031)

           226,980,464
        

 

 

 
        
U.S. GOVERNMENT ISSUES - 12.0%     
U.S. Treasury Inflation Indexed Bonds - 1.4%    

0.625%, 01/15/2024

       3,905,860       4,193,104
        

 

 

 
U.S. Treasury Notes - 10.6%         

1.500%, 10/31/2021

       1,000,000       1,011,489

1.500%, 11/30/2021

       4,000,000       4,050,365

1.125%, 02/28/2022

       4,000,000       4,047,500

1.750%, 07/15/2022

       2,000,000       2,050,273

1.375%, 02/15/2023

       2,000,000       2,053,008

2.000%, 02/15/2023

       2,000,000       2,079,375

2.000%, 02/15/2025

       2,000,000       2,141,953

2.000%, 08/15/2025

       1,000,000       1,077,422

1.625%, 02/15/2026

       2,000,000       2,127,656

2.375%, 05/15/2027

       2,000,000       2,231,367

3.125%, 11/15/2028

       3,000,000       3,552,539

1.500%, 02/15/2030

       4,000,000       4,232,344
        

 

 

 
           30,655,291
        

 

 

 

TOTAL U.S. GOVERNMENT ISSUES
(Cost $33,370,333)

 

      34,848,395
        

 

 

 
U.S. GOVERNMENT SPONSORED
ENTITIES - 6.1%
   Principal
Amount
  Value
Fannie Mae - 0.7%         

0.500%, 06/17/2025

     $ 1,852,000     $ 1,862,644
        

 

 

 
Federal Home Loan Bank - 3.5%         

1.780%, 01/22/2024

        

Callable 01/22/2021

       2,230,000       2,231,237

2.375%, 03/13/2026

       3,575,000       3,930,648

2.820%, 06/27/2029

        

Callable 06/27/2022

       4,000,000       4,093,150
        

 

 

 
           10,255,035
        

 

 

 
Freddie Mac - 1.9%         

2.375%, 01/13/2022

       2,000,000       2,046,448

0.750%, 05/28/2025

        

Callable 05/28/2021

       3,500,000       3,504,045
        

 

 

 
           5,550,493
        

 

 

 

TOTAL U.S. GOVERNMENT SPONSORED ENTITIES
(Cost $17,579,546)

           17,668,172
        

 

 

 
        
SHORT-TERM INVESTMENTS - 2.8%     
Corporate Bonds - 1.3%         

AbbVie, Inc.

        

2.300%, 05/14/2021

        

Callable 04/14/2021

         2,500,000       2,513,902

Cisco Systems, Inc.

        

2.200%, 02/28/2021

       1,225,000       1,228,828
        

 

 

 
           3,742,730
        

 

 

 
        
      Shares     
Money Market Fund - 1.5%         

Invesco Short-Term Investments Trust - Government & Agency Portfolio - Institutional Shares, 0.03% (a)

       4,312,464       4,312,464
        

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $8,050,467)

 

      8,055,194
        

 

 

 

Total Investments - 99.2%
(Cost $272,993,377)

           287,552,225

Other Assets in Excess of Liabilities - 0.8%

 

      2,304,362
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 289,856,587
        

 

 

 

 

(a)

The rate quoted is the annualized seven-day yield of the fund at period end.

 

 

The accompanying notes are an integral part of these financial statements.

 

27


LKCM INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
December 31, 2020

 

COMMON STOCKS - 92.8%    Shares   Value
AUSTRALIA - 2.4%         
Pharmaceuticals - 2.4%         

CSL Ltd.

       3,575     $ 781,111
        

 

 

 

Total Australia

           781,111
        

 

 

 
FINLAND - 1.8%         
Banks - 1.8%         

Nordea Bank Abp (a)

       71,250       583,922
        

 

 

 

Total Finland

           583,922
        

 

 

 
FRANCE - 12.2%         
Chemicals - 2.5%         

Air Liquide SA

       4,900       803,335
        

 

 

 
Electrical Equipment & Instruments - 3.0%    

Schneider Electric SA

       6,585       951,706
        

 

 

 
IT Consulting & Services - 2.5%         

Cap Gemini

       5,165       803,423
        

 

 

 
Oil & Gas & Consumable Fuels - 1.4%         

TOTAL SA

       10,715       462,481
        

 

 

 
Specialty Retail - 2.8%         

LVMH Moet Hennessy Louis Vuitton SE

       1,470       920,217
        

 

 

 

Total France

           3,941,162
        

 

 

 
GERMANY - 10.9%         
Insurance - 2.0%         

Allianz SE

       2,585       635,061
        

 

 

 
Machinery - 2.2%         

KION Group AG

       8,215       712,418
        

 

 

 
Semiconductor Equipment & Products - 2.4%    

Infineon Technologies AG

       20,800       794,318
        

 

 

 
Software - 2.2%         

SAP SE

       5,500       712,349
        

 

 

 
Textiles, Apparel & Luxury Goods - 2.1%         

Adidas AG (a)

       1,825       663,940
        

 

 

 

Total Germany

           3,518,086
        

 

 

 
IRELAND - 2.5%         
Construction Materials - 2.5%         

CRH PLC

       18,875       802,684
        

 

 

 

Total Ireland

           802,684
        

 

 

 
ITALY - 2.7%         
Banks - 1.0%         

UniCredit SpA (a)

       36,000       337,296
        

 

 

 
Textiles, Apparel & Luxury Goods - 1.7%         

Moncler SpA (a)

       8,590       528,116
        

 

 

 

Total Italy

           865,412
        

 

 

 
JAPAN - 9.3%         
Computers & Peripherals - 2.7%         

Nidec Corp.

       6,840       865,314
        

 

 

 
COMMON STOCKS    Shares   Value
Food & Drug Retailing - 1.9%         

Tsuruha Holdings, Inc.

       4,315     $ 613,609
        

 

 

 
Media & Entertainment - 3.3%         

Nintendo Co., Ltd.

       1,660       1,065,624
        

 

 

 
Personal Products - 1.4%         

Shiseido Co., Ltd.

       6,600       456,880
        

 

 

 

Total Japan

           3,001,427
        

 

 

 
JERSEY - 3.1%         
Trading Companies & Distributors - 3.1%    

Ferguson PLC

       8,350       1,014,530
        

 

 

 

Total Jersey

           1,014,530
        

 

 

 
NETHERLANDS - 6.4%         
Banks - 1.2%         

ING Groep NV (a)

       41,000       381,209
        

 

 

 
Professional Services - 1.9%         

Wolters Kluwer NV

       7,225       608,887
        

 

 

 
Semiconductor Equipment & Products - 3.3%    

ASML Holding NV

       2,200       1,065,184
        

 

 

 

Total Netherlands

           2,055,280
        

 

 

 
SPAIN - 4.5%         
Banks - 1.4%         

CaixaBank SA

       168,000       431,804
        

 

 

 
Machinery - 3.1%         

Fluidra SA

       39,000       1,001,184
        

 

 

 

Total Spain

           1,432,988
        

 

 

 
SWEDEN - 1.3%         
Oil & Gas & Consumable Fuels - 1.3%         

Lundin Petroleum AB

       15,800       428,222
        

 

 

 

Total Sweden

           428,222
        

 

 

 
SWITZERLAND - 14.3%         
Banks - 2.3%         

Julius Baer Group Ltd.

       12,615       726,769
        

 

 

 
Electrical Equipment & Instruments - 2.4%    

ABB Ltd.

       27,233       763,864
        

 

 

 
Health Care Equipment & Supplies - 2.1%    

Alcon, Inc. (a)

       10,080       669,273
        

 

 

 
Pharmaceuticals - 5.4%         

Lonza Group AG

       1,400       901,834

Roche Holding AG

       2,550       888,161
        

 

 

 
           1,789,995
        

 

 

 
Software - 2.1%         

Temenos AG

       4,765       663,906
        

 

 

 

Total Switzerland

           4,613,807
        

 

 

 
UNITED KINGDOM - 21.4%         
Banks - 3.3%         

Barclays PLC (a)

       282,715       567,153

Lloyds Banking Group PLC (a)

       997,100       497,113
        

 

 

 
           1,064,266
        

 

 

 
 

 

The accompanying notes are an integral part of these financial statements.

 

28


LKCM INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2020

 

COMMON STOCKS    Shares   Value
Beverages - 1.9%         

Diageo PLC

       15,850     $ 627,166
        

 

 

 
Commercial Services & Supplies - 2.5%         

Rentokil Initial Plc (a)

       114,125       795,701
        

 

 

 
Hotels, Restaurants & Leisure - 3.2%         

Compass Group PLC

       21,785       406,321

InterContinental Hotels Group PLC (a)

       9,460       613,151
        

 

 

 
           1,019,472
        

 

 

 
Household Products - 1.2%         

Reckitt Benckiser Group PLC

       4,265       380,670
        

 

 

 
Insurance - 1.9%         

Prudential PLC

       34,000       625,192
        

 

 

 
Oil & Gas & Consumable Fuels - 1.3%         

Royal Dutch Shell PLC - A Shares

       23,500