N-CSR 1 d261117dncsr.htm N-CSR N-CSR

 

 

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, 2021

 

 

 


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, 2021


Dear Fellow Shareholders:

We report the following performance information for the LKCM Funds for indicated periods ended December 31, 2021:

 

Funds

   Inception
Date
   NAV @
12/31/21
   Net
Expense
Ratio*,**
   Gross
Expense
Ratio**
   One Year
Total
Return
Ended
12/31/21
   Five Year
Average
Annualized
Return
Ended
12/31/21
   Ten Year
Average
Annualized
Return
Ended
12/31/21
   Avg.
Annual
Total
Return
Since
Incept.

LKCM Small Cap Equity Fund

       07/14/1994      $ 21.54        1.00%        1.07%        14.49%        15.88%        11.97%        11.20%

Russell 2000® Index(1)

                           14.82%        12.02%        13.23%        9.85%

LKCM Small-Mid Cap Equity Fund

       05/02/2011      $ 10.97        1.00%        1.98%        15.37%        17.44%        12.05%        9.99%

Russell 2500® Index(2)

                           18.18%        13.75%        14.15%        11.75%

LKCM Equity Fund

       01/03/1996      $ 38.69        0.81%        0.99%        22.48%        18.12%        14.83%        9.93%

S&P 500® Index(3)

                           28.71%        18.47%        16.55%        10.20%

LKCM Balanced Fund

       12/30/1997      $ 29.21        0.80%        0.99%        14.01%        12.08%        11.11%        7.50%

S&P 500® Index(3)

                           28.71%        18.47%        16.55%        8.87%

Bloomberg U.S. Intermediate

                                       

Government/Credit Bond Index(4)

                           -1.44%        2.91%        2.38%        4.30%

LKCM Fixed Income Fund

       12/30/1997      $ 10.87        0.50%        0.79%        -1.54%        2.33%        2.23%        4.01%

Bloomberg U.S. Intermediate

                                       

Government/Credit Bond Index(4)

                           -1.44%        2.91%        2.38%        4.30%

LKCM International Equity Fund

       05/01/2019      $ 14.50        1.01%        1.89%        18.00%        N/A        N/A        15.58%

MSCI/EAFE® Index(5)

                           11.78%        N/A        N/A        10.55%

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, 2022. 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. LKCM waived management fees and/or reimbursed expenses for each Fund during the fiscal year ended December 31, 2021.

**

Expense ratios above are as reported in the Funds’ current prospectus dated May 1, 2021. 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 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.

2021 Review

Despite the many challenges posed by coronavirus variants, 2021 produced the best economic growth since 1984, a third year of double-digit gains in the S&P 500® Index, and relatively low market volatility. Several powerful engines drove the equity markets higher, including monetary and fiscal stimulus, and the distribution of effective vaccines. Much of the focus early in 2021 was fiscal policy, while emphasis shifted to monetary policy as we exited the year. On March 11th President Biden signed the American Rescue Plan which injected an additional $1.9 trillion into the economy. This new legislation allowed for, among other things, additional direct payments to consumers, supplemental unemployment benefits, and aid to local governments. The bond market reacted strongly to the potential for further fiscal stimulus with the yield on the 10-Year Treasury nearly doubling to 1.74% by the end of the first quarter of 2021, which would prove to be the highest yield for the 10-Year Treasury for the year.

The Federal Reserve meeting in June surprised investors by forecasting two 0.25% interest rate hikes in 2023, when previous guidance from the Federal Reserve had been for only one interest rate hike. Long duration government bond yields trended lower in early July, reflecting a worsening growth outlook in response to the Delta variant. The most significant pullback in the equity market, as measured

 

2


by the S&P 500® Index, during 2021 of approximately 5.2% began in September as long duration bond yields began to rise in apparent anticipation of the Federal Reserve announcing the taper of bond purchases, continued strong inflation readings, and challenges faced by a prominent Chinese real estate development company.

Core inflation returned in 2021 following a 30-year hiatus. Starting in March 2020, the U.S. government created approximately $3 trillion of new bank reserves, sent checks to individuals, and provided forgivable loans to businesses. The U.S. Treasury then borrowed roughly an additional $2 trillion and sent even more checks to individuals. While the ensuing inflation was not a great surprise in our view, the expected duration of the inflation is a matter of great debate. In sum, the fiscal stimulus injected into the economy was equivalent to more than 25% of Gross Domestic Product (GDP). While much of this money went to assist individuals and businesses heavily impacted by the pandemic, these actions stoked demand just as the economy struggled with both production and supply chain challenges. In terms of monetary policy, the Federal Reserve’s “Quantitative Easing” both lowered interest rates and significantly expanded the monetary base. The money supply, as measured by M2, increased 39% from February 2020, a faster rate than any other equivalent time period since 1960.

Despite there being five million fewer people employed, we believe that the U.S. has generally regained the lost economic output brought about by the pandemic. There are approximately 10.6 million job vacancies according to the latest government data, reflecting very strong markets and demand in our view. One component of the labor force disruption has been termed the “Great Resignation.” A record 4.3 million Americans, approximately 2.9% of the workforce, left their jobs in August, which was impacted by an acceleration in workers retiring from the workforce. As a result, the annual increase in the Employment Cost Index rose to approximately 3.7% during the third quarter, which is a level not seen since 2004.

The labor force has expanded to a new high in each economic expansion since World War II. The smallest gain was 2.5% during the aborted double-dip recovery of 1980. Today, the labor force is still 1.5% below the 2019 peak. If the labor force were to expand a meager 2.5% this cycle, the economy would need to add about 6.7 million workers. Following recessions, consumers are historically reticent to spend and businesses to hire, while laid-off workers are eager to gain employment. However, following the pandemic induced recession, consumer spending has been exceptionally robust thanks in part due to fiscal policy. Employers appear to be anxious to hire, but workers have been slower to reenter the labor force.

The equity market, as measured by the S&P 500® Index, rose 28.7% in 2021, including dividends. For most of the past year there was considerable debate among investors regarding the influence of monetary and fiscal policy on the equity market. We believe that monetary and fiscal policy undoubtedly has had a positive impact on short-term economic activity, which is indeed the goal of the policy actions taken in our view. However, the impressive market return in 2021 seemingly was not the result of increased risk appetite among investors as the Price/Earnings ratio of the S&P 500® Index declined slightly during the year. We believe the market return last year was primarily driven by improving business fundamentals reflected in higher than originally forecasted corporate profits. We anticipate continued strength in corporate profits in 2022.

2022 Outlook

The period from the mid-1980’s to 2007 is often referred to economically as the “Great Moderation” and reflected a welcome respite following the volatility of the “Great Inflation” period lasting from 1965 to 1982. If we were to title 2022, it would be the “Great Normalization.” The economic and health policy response to the pandemic materially altered the pattern of daily life, including where and how we work and where and how we consume. The pattern of daily life continues to be disrupted as the Omicron variant has caused pockets of travel restrictions, resumption of curfews in Europe, further delays in plans to return to the office, and resumption of virtual class in some schools. Yet, we believe the coming year will bring several important steps to a return to normal in terms of economic growth, fiscal stimulus, monetary policy, and inflation.

We believe one of the most important economic shifts in the “Great Normalization” will be brought about by the Federal Reserve. In our view, the central bank acted swiftly to help mitigate the economic fallout of the pandemic in two primary ways. First, it rapidly lowered its key interest rate, the Federal Funds Rate, to near zero in March of 2020. Second, the central bank began purchasing significant amounts of U.S. Treasuries and Mortgage-Backed Securities to help keep market interest rates low to stabilize and support the economy. The Federal Reserve has already communicated its goal of ending net new bond purchases by March of 2022. Furthermore, the latest forecast by the Federal Reserve’s interest rate setting body indicates that the central bank is likely to increase its benchmark interest rate by 0.75% in 2022 in three increments. We believe market reaction to central bank policy is often not a function of the action policymakers take. Rather, in our view it is a function of what they do relative to expectations. By sending a clear, hawkish signal now, we believe the central bank has left itself room to appear dovish, even as it tightens monetary policy.

Inflation readings are likely to moderate in 2022 in our view, but the pace of moderation is highly dependent on a combination of challenging variables to forecast. While headline Consumer Price Index (CPI) inflation of 6.8% is remarkable, the underlying composition of the inflation is noteworthy. Supply disruptions and the significant shift in consumer spending from services to goods has pressured the price of goods to outpace services. Over 60% of the core CPI increase, which excludes food and energy, in the past year was due to core goods, which represent 25% of the core CPI basket.

 

3


We believe policy changes may present the greatest challenges for equities in 2022, as Federal Reserve balance sheet shifts have proven tricky to equities over the past decade and fiscal support appears likely to wane in the coming year. Each period of balance sheet normalization or contraction since 2009 has coincided with an equity market correction, including in 2011, 2015, and 2018. However, we believe there are plenty of potential offsets. Bond yields are negative after accounting for inflation, which may further shift investments from the bond market to the equity market. In addition, we believe other potential offsets include a capital-spending boom, a strong U.S. dollar surge, and peak inflation.

We are constructive on the equity market, as measured by the S&P 500® Index, as we head into 2022. The market has not had a correction, however, which we define as at least a 10% pullback, since the March 2020 low. In our view, we would be surprised to not have at least one market correction in 2022 as shifting monetary policy is generally accompanied by increased market volatility. Moreover, we believe mid-term election years have historically promoted volatility related to various scenarios of election results. Bear markets, defined as a greater than 20% pullback, generally coincide with economic recessions in our view. We believe it would be difficult to see consecutive quarters of negative economic growth in 2022 given the amount of stimulus remaining in the economy. No recession since at least 1960 has emerged before the yield on the 10-Year Treasury fell below the Fed Funds rate. Currently, with this yield differential at positive 1.5%, and we believe the yield curve is far from inverting. Finally, both consumer and corporate balance sheets remain very healthy in our view. Recessions are often marked by extended leverage in the economy which we simply do not believe is present today.

LKCM Small Cap Equity Fund

The LKCM Small Cap Equity Fund returned 14.49% for the year ended December 31, 2021, as compared to the 14.82% return for the Russell 2000® Index, the Fund’s benchmark. The Fund’s relative performance slightly benefited from sector allocation decisions, particularly being overweight the Industrials and Communication Services sectors and being slightly underweight the Healthcare sector relative to the benchmark. Stock selection decisions in the Healthcare, Real Estate, Industrials and Consumer Discretionary sectors benefited the Fund’s relative performance, which was partially offset by stock selection decisions in the Information Technology, Communication Services and Financials sectors that detracted from performance. The Fund also benefited during the year from five portfolio companies being acquired and five 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. The Fund complemented this tilt with quality valued-oriented companies within the portfolio that benefited the Fund’s performance during this past year in which value-oriented companies generally outperformed growth-oriented companies. We anticipate that the Fund will continue to work towards a balanced approach of growth-oriented companies and value-oriented companies and believe that the Fund is well-positioned for 2022.

LKCM Small-Mid Cap Equity Fund

The LKCM Small-Mid Cap Equity Fund returned 15.37% for the year ended December 31, 2021, as compared to the 18.18% return for the Russell 2500® Index, the Fund’s benchmark. The Fund’s overweight position in the Healthcare sector detracted from the Fund’s relative performance, which was partially offset by being overweight in the Energy and Industrials sectors. Stock selection decisions in the Information Technology, Consumer Discretionary and Consumer Staples sectors detracted from the Fund’s relative performance, which was partially offset by stock selection decisions in the Healthcare, Industrials and Real Estate sectors. The Fund continues to implement an investment strategy that focuses on companies that we believe are high quality, and we believe the Fund is well-positioned for 2022.

LKCM Equity Fund

The LKCM Equity Fund returned 22.48% for the year ended December 31, 2021, as compared to the 28.71% return for the S&P 500® Index, the Fund’s benchmark. The Fund’s overweight position in the Industrials sector detracted from the Fund’s relative performance, which was partially offset by the Fund’s underweight position in the Communication Services and Utilities sectors. Stock section decisions in the Information Technology and Materials sectors detracted from the Fund’s relative performance, which was partially offset by stock selection decisions in the Industrials and Communication Services sectors. 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 2022.

LKCM Balanced Fund

The LKCM Balanced Fund returned 14.01% for the year ended December 31, 2021 versus the 28.71% return for the S&P 500® Index and the -1.44% return for the Bloomberg Intermediate Government/Credit Bond Index. The equity portion of the Fund’s portfolio benefited from stock selection decisions in the Healthcare and Financials sectors relative to the benchmark, which was offset by stock selection decisions in the Information Technology and Communications Services sectors. The fixed income portion of the Fund’s portfolio benefited from its relatively short duration as compared to the benchmark and continued to remain focused on high quality intermediate corporate bonds. While we currently anticipate an increased level of volatility in the capital markets during the upcoming year, we believe the Fund is well-positioned for 2022.

 

4


LKCM Fixed Income Fund

The LKCM Fixed Income Fund returned -1.54% for the year ended December 31, 2021 compared to its benchmark, the Bloomberg Intermediate Government/Credit Bond Index, which returned -1.44% for the year ended December 31, 2021. During the year, high-quality U.S. government notes and bonds and corporate issues produced negative returns across the board as interest rates rose sharply while speculative grade or junk bond issues outperformed following the stock market higher. U.S. Treasury and high-quality corporate issue yields increased substantially with yields in the belly of the curve, i.e., the three-to-seven-year sector, rising the most, and the curve ended the year flatter than where it began the year after steepening dramatically in the first quarter in response to strong economic growth. We believe that this flattening of the curve was largely in response to the Federal Reserve ultimately tapering its buying of securities, or quantitative easing, at an accelerated pace after injecting unprecedented liquidity into the economy and the markets over the past several years. Interest rates also rose, in our view, in anticipation of increases in the federal funds rate and ultimately balance sheet run off, or quantitative tightening. We believe these actions by the Federal Reserve are designed to reverse the aggressive monetary policy easing put in place to backstop the economy during the height of the pandemic and counter the sharp increase in inflation. In our view, the aggressive easing of monetary policy, in conjunction with unprecedented fiscal policy, enacted to counter the negative effects of the pandemic, have ultimately led to more enduring supply-chain bottlenecks and labor shortages that have thus far resulted in more persistent increases in inflation. Within this backdrop, high-quality corporate bonds in the belly of the curve were the most negatively impacted by rising interest rates and widening credit spreads. While the Fund’s shorter overall defensive duration was additive to performance during the year, the focus on high-quality corporate bonds in the belly of the curve detracted from the Fund’s performance. The Fund remains defensive with a shorter overall duration of 2.5 years in an effort to mitigate interest rate risk and holdings of high-quality corporate bonds of companies with strong underlying fundamentals in an effort to limit credit risk and produce a sustainable cash flow stream.

LKCM International Equity Fund

The LKCM International Equity Fund returned 18.00% for the year ended December 31, 2021, as compared to the 11.78% return for the MSCI EAFE Index, the Fund’s benchmark. During this period, the Fund’s relative performance benefited from underweight positions in the Utilities and Communication Services sectors, which was partially offset by being underweight the Financials sector. The Fund’s relative performance also benefited from strong stock selection decisions in the Industrials, Healthcare, Information Technology and Financials sectors, which was partially offset by stock selection decisions in the Consumer Staples, Communication Services and Materials 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 perform better than the broader market through market cycles. The Fund’s holdings of quality valued-oriented companies also benefited the Fund’s performance during this past year in which value-oriented companies generally outperformed growth-oriented companies. We believe the global economic outlook continues to carry the pandemic weight of uncertainty, although the extraordinary stimulus measures enacted globally appear to have promoted strong demand. As we move through 2022, our focus will be on the outlook for longer-term inflation and its related impacts on interest rates.

 

LOGO

J. Luther King, Jr., CFA, CIC

January 5, 2022

 

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 15-31 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 and other 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.

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

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 and/or the prospectus by calling 1-800-688-LKCM. The summary prospectus and/or 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, 2021 compared to the Fund’s 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, 2021)

 

         
      Past
1 Year
     Past
5 Years(1)
     Past
10 Years(1)
     Since
Inception(1)(2)

LKCM Small Cap Equity Fund

       14.49%          15.88%          11.97%          11.20%

Russell 2000® Index

       14.82%          12.02%          13.23%          9.85%

Lipper Small-Cap Core Funds Index

       25.55%          11.91%          12.97%          10.49%
(1) 

Annualized

(2) 

July 14, 1994

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

(for the ten years ended December 31, 2021)

 

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, 2021 compared to the Fund’s 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, 2021)

 

         
      Past
1 Year
     Past
5 Years(1)
     Past
10 Years(1)
     Since
Inception(1)(2)

LKCM Small-Mid Cap Equity Fund

       15.37%          17.44%          12.05%          9.99%

Russell 2500® Index

       18.18%          13.75%          14.15%          11.75%

Lipper Small-Cap Core Funds Index

       25.55%          11.91%          12.97%          10.67%
(1) 

Annualized

(2) 

May 2, 2011

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

(for the ten years ended December 31, 2021)

 

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, 2021 compared to the Fund’s 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, 2021)

 

         
      Past
1 Year
     Past
5 Years(1)
     Past
10 Years(1)
     Since
Inception(1)(2)

LKCM Equity Fund

       22.48%          18.12%          14.83%          9.93%

S&P 500® Index

       28.71%          18.47%          16.55%          10.20%

Lipper Large-Cap Core Funds Index

       26.04%          16.71%          15.12%          9.06%
(1) 

Annualized

(2) 

January 3, 1996

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM EQUITY FUND

(for the ten years ended December 31, 2021)

 

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, 2021 compared to the Fund’s 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, 2021)

 

         
      Past
1 Year
     Past
5 Years(1)
     Past
10 Years(1)
     Since
Inception(1)(2)

LKCM Balanced Fund

       14.01%          12.08%          11.11%          7.50%

S&P 500® Index

       28.71%          18.47%          16.55%          8.87%

Bloomberg U.S. Intermediate Government/Credit Bond Index

       -1.44%          2.91%          2.38%          4.30%

Lipper Mixed-Asset Target Allocation Growth Funds Index

       15.07%          12.22%          10.79%          7.21%
(1) 

Annualized

(2) 

December 30, 1997

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM BALANCED FUND

(for the ten years ended December 31, 2021)

 

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 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, 2021 compared to the Fund’s 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, 2021)

 

         
      Past
1 Year
     Past
5 Years(1)
     Past
10 Years(1)
     Since
Inception(1)(2)

LKCM Fixed Income Fund

       -1.54%          2.33%          2.23%          4.01%

Bloomberg U.S. Intermediate Government/Credit Bond Index

       -1.44%          2.91%          2.38%          4.30%

Lipper Short Intermediate Investment-Grade Debt Funds Index

       -0.40%          2.78%          2.38%          3.80%
(1) 

Annualized

(2) 

December 30, 1997

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

(for the ten years ended December 31, 2021)

 

LOGO

The Bloomberg 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, 2021 compared to the Fund’s 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, 2021)

 

         
      Past
1 Year
     Past
5 Years(1)
     Past
10 Years(1)
     Since
Inception(1)(2)

LKCM International Equity Fund

       18.00%          N/A          N/A          15.58%

MSCI/EAFE® Index

       11.78%          N/A          N/A          10.55%

Lipper International Large-Cap Core Funds Index

       12.16%          N/A          N/A          9.13%
(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, 2021)

 

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, 2021

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 (07/01/2021-12/31/2021).

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 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 provide 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
07/01/2021
   Ending
Account Value
12/31/2021
   Expenses
Paid
During
Period(1)
   Ending
Account Value
12/31/2021
   Expenses
Paid
During
Period(1)

LKCM Small Cap Equity Fund

       1.00 %     $ 1,000.00      $ 973.70      $ 4.97      $ 1,020.16      $ 5.09

LKCM Small-Mid Cap Equity Fund

       1.00 %     $ 1,000.00      $ 1,019.30      $ 5.09      $ 1,020.16      $ 5.09

LKCM Equity Fund

       0.80 %     $ 1,000.00      $ 1,074.40      $ 4.18      $ 1,021.17      $ 4.08

LKCM Balanced Fund

       0.80 %     $ 1,000.00      $ 1,052.40      $ 4.14      $ 1,021.17      $ 4.08

LKCM Fixed Income Fund

       0.50 %     $ 1,000.00      $ 992.10      $ 2.51      $ 1,022.68      $ 2.55

LKCM International Equity Fund

       1.00 %     $ 1,000.00      $ 1,035.90      $ 5.13      $ 1,020.16      $ 5.09

 

(1)

Expenses are equal to the annualized net expense ratio for the Fund, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

 

13


ALLOCATION OF PORTFOLIO HOLDINGS — LKCM Funds — December 31, 2021

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, 2021

 

COMMON STOCKS - 94.2%    Shares   Value
Aerospace & Defense - 2.7%         

Hexcel Corp. (a)

       35,325     $ 1,829,835

Mercury Systems, Inc. (a)

       42,800       2,356,568

Triumph Group, Inc. (a)

       111,098       2,058,646
        

 

 

 
           6,245,049
        

 

 

 
Auto Components - 1.2%         

Fox Factory Holding Corp. (a)

       16,290       2,770,929
        

 

 

 
Banks - 7.8%         

Cadence Bank

       114,529       3,411,819

Comerica, Inc.

       31,215       2,715,705

Cullen/Frost Bankers, Inc.

       21,375       2,694,746

Glacier Bancorp, Inc.

       43,655       2,475,238

Pinnacle Financial Partners, Inc.

       35,705       3,409,828

Seacoast Banking Corp. of Florida

       92,175       3,262,073
        

 

 

 
           17,969,409
        

 

 

 
Beverages - 1.9%         

Celsius Holdings, Inc. (a)

       40,451       3,016,431

Primo Water Corp. (b)

       80,000       1,410,400
        

 

 

 
           4,426,831
        

 

 

 
Biotechnology - 1.5%         

Castle Biosciences, Inc. (a)

       34,275       1,469,369

Neogen Corp. (a)

       40,790       1,852,274
        

 

 

 
           3,321,643
        

 

 

 
Building Products - 4.9%         

Builders FirstSource, Inc. (a)

       51,015       4,372,496

CSW Industrials, Inc.

       24,550       2,967,113

PGT Innovations, Inc. (a)

       77,046       1,732,764

Zurn Water Solutions Corp.

       60,995       2,220,218
        

 

 

 
           11,292,591
        

 

 

 
Chemicals - 2.2%         

Ecovyst, Inc.

       271,145       2,776,525

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

       302,970      

Quaker Chemical Corp.

       9,340       2,155,485
        

 

 

 
           4,932,010
        

 

 

 
Commercial Services & Supplies - 0.8%         

Driven Brands Holdings, Inc. (a)

       55,000       1,849,100
        

 

 

 
Construction & Engineering - 1.4%         

NV5 Global, Inc. (a)

       23,342       3,223,997
        

 

 

 
Construction Materials - 1.7%         

Eagle Materials, Inc.

       24,020       3,998,369
        

 

 

 
Electrical Equipment - 1.0%         

Regal Rexnord Corp.

       13,599       2,314,278
        

 

 

 
Electronic Equipment & Instruments - 1.3%

Novanta, Inc. (a)(b)

       16,290       2,872,416
        

 

 

 
Energy Equipment & Services - 0.7%         

Weatherford International Plc (a)(b)

       59,000       1,635,480
        

 

 

 
COMMON STOCKS    Shares   Value
Health Care Equipment & Supplies - 4.1%

Cerus Corp. (a)

       325,000     $ 2,213,250

NeoGenomics, Inc. (a)

       53,710       1,832,585

STAAR Surgical Co. (a)

       26,825       2,449,123

TransMedics Group, Inc. (a)

       57,090       1,093,844

ViewRay, Inc. (a)

       306,205       1,687,190
        

 

 

 
           9,275,992
        

 

 

 
Health Care Providers & Services - 7.2%         

HealthEquity, Inc. (a)

       24,350       1,077,244

Medpace Holdings, Inc. (a)

       23,765       5,172,215

Omnicell, Inc. (a)

       18,320       3,305,661

Progyny, Inc. (a)

       53,370       2,687,179

R1 RCM, Inc. (a)

       106,100       2,704,489

U.S. Physical Therapy, Inc.

       16,015       1,530,233
        

 

 

 
           16,477,021
        

 

 

 
Hotels, Restaurants & Leisure - 6.4%         

Bally’s Corp. (a)

       20,000       761,200

Everi Holdings, Inc. (a)

       197,622       4,219,230

Playa Hotels & Resorts NV (a)(b)

       269,190       2,148,136

Red Rock Resorts, Inc. - Class A

       95,550       5,256,205

Wingstop, Inc.

       12,855       2,221,344
        

 

 

 
           14,606,115
        

 

 

 
Household Durables - 0.8%         

Sonos, Inc. (a)

       61,390       1,829,422
        

 

 

 
Insurance - 3.0%         

Argo Group International Holdings, Ltd. (b)

       54,285       3,154,501

Goosehead Insurance, Inc. - Class A

       10,595       1,378,198

Palomar Holdings, Inc. (a)

       36,600       2,370,582
        

 

 

 
           6,903,281
        

 

 

 
Internet & Catalog Retail - 1.0%         

Magnite, Inc. (a)

       129,000       2,257,500
        

 

 

 
IT Consulting & Services - 3.1%         

LiveRamp Holdings, Inc. (a)

       38,026       1,823,347

Perficient Inc. (a)

       34,250       4,428,182

Repay Holdings Corp. (a)

       49,010       895,413
        

 

 

 
           7,146,942
        

 

 

 
IT Services - 0.9%         

Brightcove, Inc. (a)

       208,500       2,130,870
        

 

 

 
Leisure Equipment & Products - 2.1%         

Callaway Golf Company (a)

       99,600       2,733,024

YETI Holdings, Inc. (a)

       25,535       2,115,064
        

 

 

 
           4,848,088
        

 

 

 
Life Sciences Tools & Services - 0.3%         

Inotiv, Inc. (a)

       18,420       774,929
        

 

 

 
Machinery - 6.4%         

Alamo Group, Inc.

       10,360       1,524,785

Colfax Corp. (a)

       56,635       2,603,511

Evoqua Water Technologies Corp. (a)

       45,775       2,139,981

Helios Technologies, Inc.

       35,295       3,711,975
 

 

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

 

15


LKCM SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

COMMON STOCKS    Shares   Value
Machinery - 6.4%, Continued         

ITT, Inc.

       16,730     $ 1,709,639

Watts Water Technologies, Inc. - Class A

       15,775       3,063,032
        

 

 

 
           14,752,923
        

 

 

 
Marine - 1.2%         

Kirby Corp. (a)

       46,370       2,755,305
        

 

 

 
Media & Entertainment - 1.6%         

Nexstar Media Group, Inc. - Class A

       24,920       3,762,422
        

 

 

 
Oil & Gas & Consumable Fuels - 1.6%         

Magnolia Oil & Gas Corp. - Class A

       193,005       3,642,004
        

 

 

 
Oil, Gas & Consumable Fuels - 2.5%         

CNX Resources Corp. (a)

       200,000       2,750,000

HollyFrontier Corp.

       91,625       3,003,468
        

 

 

 
           5,753,468
        

 

 

 
Personal Products - 1.3%         

BellRing Brands, Inc. - Class A (a)

       101,375       2,892,229
        

 

 

 
Professional Services - 1.9%         

Upwork, Inc. (a)

       125,760       4,295,962
        

 

 

 
Real Estate Development - 2.8%         

FirstService Corp. (b)

       9,995       1,963,718

Newmark Group, Inc. - Class A

       240,000       4,488,000
        

 

 

 
           6,451,718
        

 

 

 
Real Estate Investment Trust - 1.0%         

SL Green Realty Corp.

       32,145       2,304,797
        

 

 

 
Software - 7.8%         

ACI Worldwide, Inc. (a)

       52,105       1,808,043

Alkami Technology, Inc. (a)

       52,495       1,053,050

Altair Engineering, Inc. - Class A (a)

       36,190       2,798,211

Blackbaud, Inc. (a)

       31,815       2,512,749

Model N, Inc. (a)

       63,650       1,911,409

OneSpan Inc. (a)

       92,375       1,563,909

Q2 Holdings, Inc. (a)

       11,905       945,733

Sprout Social, Inc. - Class A (a)

       23,500       2,131,215

Workiva Inc. (a)

       24,520       3,199,615
        

 

 

 
           17,923,934
        

 

 

 
Software & Services - 0.8%         

Alarm.com Holdings, Inc. (a)

       22,430       1,902,288
        

 

 

 
Specialty Retail - 2.2%         

Academy Sports & Outdoors, Inc. (a)

       38,000       1,668,200

Leslie’s, Inc. (a)

       58,665       1,388,014

Petco Health & Wellness Co, Inc. (a)

       96,000       1,899,840
        

 

 

 
           4,956,054
        

 

 

 
Technology Hardware, Storage & Peripherals - 1.2%

Avid Technology, Inc. (a)

       84,585       2,754,933
        

 

 

 
Thrifts & Mortgage Finance - 1.5%         

Home BancShares, Inc.

       137,301       3,343,279
        

 

 

 
COMMON STOCKS    Shares   Value
Trading Companies & Distributors - 2.4%

Global Industrial Co.

       65,265     $ 2,669,338

Textainer Group Holdings Ltd. (b)

       76,250       2,722,888
        

 

 

 
           5,392,226
        

 

 

 
TOTAL COMMON STOCKS
(Cost $124,810,564)
       215,985,804
        

 

 

 
        
SHORT-TERM INVESTMENTS - 3.7%
Money Market Funds - 3.7%         

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

       6,713,308       6,713,308

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

       1,705,400       1,705,400
        

 

 

 
           8,418,708
        

 

 

 
TOTAL SHORT-TERM INVESTMENTS
(Cost $8,418,708)
       8,418,708
        

 

 

 
Total Investments - 97.9%
(Cost $133,229,272)
       224,404,512

Other Assets in Excess of Liabilities - 2.1%

 

      4,794,719
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 229,199,231
        

 

 

 

 

(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.

(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, 2021

 

COMMON STOCKS - 100.1%    Shares   Value
Aerospace & Defense - 2.8%         

Axon Enterprise, Inc. (a)

       2,525     $ 396,425
        

 

 

 
Banks - 8.2%         

Cadence Bank

       1,000       29,790

Comerica, Inc.

       3,635       316,245

Cullen/Frost Bankers, Inc.

       3,180       400,902

Zions Bancorp N.A.

       6,860       433,278
        

 

 

 
           1,180,215
        

 

 

 
Biotechnology - 6.9%         

Charles River Laboratories International, Inc. (a)

       1,285       484,162

Natera, Inc. (a)

       2,480       231,607

Neogen Corp. (a)

       5,960       270,644
        

 

 

 
           986,413
        

 

 

 
Building Products - 8.0%         

Builders FirstSource, Inc. (a)

       5,675       486,404

CSW Industrials, Inc.

       1,190       143,824

Trex Co., Inc. (a)

       2,035       274,786

Zurn Water Solutions Corp.

       6,560       238,784
        

 

 

 
           1,143,798
        

 

 

 
Capital Markets - 2.9%         

LPL Financial Holdings, Inc.

       2,620       419,436
        

 

 

 
Construction & Engineering - 1.1%         

WillScot Mobile Mini Holdings Corp. (a)

       4,010       163,768
        

 

 

 
Construction Materials - 2.4%         

Eagle Materials, Inc.

       2,040       339,578
        

 

 

 
Electrical Equipment - 1.7%         

Regal Rexnord Corp.

       1,462       248,803
        

 

 

 
Electronic Equipment & Instruments - 2.8%

Trimble, Inc. (a)

       4,605       401,510
        

 

 

 
Food Products - 1.6%         

Freshpet, Inc. (a)

       2,445       232,935
        

 

 

 
Health Care Equipment & Supplies - 2.7%

NeoGenomics, Inc. (a)

       4,880       166,506

STAAR Surgical Co. (a)

       2,390       218,207
        

 

 

 
           384,713
        

 

 

 
Health Care Providers & Services - 7.0%

Medpace Holdings, Inc. (a)

       1,850       402,634

Omnicell, Inc. (a)

       2,370       427,643

R1 RCM, Inc. (a)

       6,570       167,469
        

 

 

 
           997,746
        

 

 

 
Hotels, Restaurants & Leisure - 1.5%         

Wingstop, Inc.

       1,205       208,224
        

 

 

 
Insurance - 1.6%         

Palomar Holdings, Inc. (a)

       3,585       232,200
        

 

 

 
Internet & Catalog Retail - 0.8%         

Magnite, Inc. (a)

       6,640       116,200
        

 

 

 
COMMON STOCKS    Shares   Value
IT Consulting & Services - 4.7%         

Black Knight, Inc. (a)

       4,355     $ 360,986

Perficient Inc. (a)

       2,375       307,064
        

 

 

 
           668,050
        

 

 

 
Leisure Equipment & Products - 5.9%         

Brunswick Corp.

       2,650       266,934

Pool Corp.

       725       410,350

YETI Holdings, Inc. (a)

       2,095       173,529
        

 

 

 
           850,813
        

 

 

 
Machinery - 4.8%         

Colfax Corp. (a)

       6,385       293,518

ITT, Inc.

       3,840       392,410
        

 

 

 
           685,928
        

 

 

 
Marine - 2.0%         

Kirby Corp. (a)

       4,820       286,404
        

 

 

 
Media & Entertainment - 1.9%         

Nexstar Media Group, Inc. - Class A

       1,840       277,803
        

 

 

 
Metals & Mining - 3.3%         

Teck Resources Ltd. - Class B (b)

       16,600       478,412
        

 

 

 
Multiline Retail - 2.2%         

Five Below, Inc. (a)

       1,495       309,301
        

 

 

 
Oil, Gas & Consumable Fuels - 5.7%         

CNX Resources Corp. (a)

       10,300       141,625

Diamondback Energy Inc.

       3,625       390,957

HollyFrontier Corp.

       8,840       289,775
        

 

 

 
           822,357
        

 

 

 
Pharmaceuticals - 2.3%         

Horizon Therapeutics PLC (a)(b)

       2,995       322,741
        

 

 

 
Professional Services - 2.2%         

Upwork, Inc. (a)

       9,365       319,908
        

 

 

 
Real Estate Development - 4.3%         

FirstService Corp. (b)

       1,645       323,193

Newmark Group, Inc. - Class A

       15,985       298,920
        

 

 

 
           622,113
        

 

 

 
Software - 4.3%         

Altair Engineering, Inc. - Class A (a)

       2,300       177,836

Appian Corp. (a)

       1,240       80,860

Nutanix, Inc. - Class A (a)

       6,710       213,781

Paylocity Holding Corp. (a)

       630       148,781
        

 

 

 
           621,258
        

 

 

 
Specialty Retail - 3.2%         

Academy Sports & Outdoors, Inc. (a)

       3,920       172,088

Leslie’s, Inc. (a)

       12,310       291,255
        

 

 

 
           463,343
        

 

 

 
 

 

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

 

17


LKCM SMALL-MID CAP EQUITY FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

COMMON STOCKS    Shares   Value
Trading Companies & Distributors - 1.3%

Watsco, Inc.

       600     $ 187,728
        

 

 

 

TOTAL COMMON STOCKS
(Cost $8,300,997)

           14,368,123
        

 

 

 

Total Investments - 100.1%
(Cost $8,300,997)

 

      14,368,123

Liabilities in Excess of Other Assets - (0.1)%

 

      (13,500 )
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 14,354,623
        

 

 

 

 

(a)

Non-income producing security.

(b)

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

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, 2021

 

COMMON STOCKS - 96.3%    Shares   Value
Aerospace & Defense - 1.9%         

Honeywell International, Inc.

       50,000     $ 10,425,500
        

 

 

 
Banks - 5.0%         

Bank of America Corp.

       160,000       7,118,400

Comerica, Inc.

       100,000       8,700,000

Cullen/Frost Bankers, Inc.

       65,000       8,194,550

Glacier Bancorp, Inc.

       60,000       3,402,000
        

 

 

 
           27,414,950
        

 

 

 
Beverages - 3.2%         

The Coca-Cola Co.

       95,000       5,624,950

Keurig Dr Pepper, Inc.

       100,000       3,686,000

PepsiCo, Inc.

       45,000       7,816,950
        

 

 

 
           17,127,900
        

 

 

 
Biotechnology - 1.2%         

Amgen, Inc.

       28,000       6,299,160
        

 

 

 
Chemicals - 5.6%         

DuPont de Nemours, Inc.

       95,000       7,674,100

Ecolab, Inc.

       45,000       10,556,550

FMC Corp.

       110,000       12,087,900
        

 

 

 
           30,318,550
        

 

 

 
Commercial Services & Supplies - 3.6%         

Cintas Corp.

       16,000       7,090,720

Waste Connections, Inc. (b)

       90,000       12,264,300
        

 

 

 
           19,355,020
        

 

 

 
Computers & Peripherals - 3.3%         

Apple, Inc.

       100,000       17,757,000
        

 

 

 
Construction Materials - 1.5%         

Martin Marietta Materials, Inc.

       18,000       7,929,360
        

 

 

 
Diversified Financials - 2.0%         

JPMorgan Chase & Co.

       68,000       10,767,800
        

 

 

 
Electrical Equipment & Instruments - 4.9%    

Franklin Electric Co., Inc.

       85,000       8,037,600

Rockwell Automation, Inc.

       25,000       8,721,250

Roper Technologies, Inc.

       20,000       9,837,200
        

 

 

 
           26,596,050
        

 

 

 
Electronic Equipment & Instruments - 2.8%    

National Instruments Corp.

       55,000       2,401,850

Trimble, Inc. (a)

       150,000       13,078,500
        

 

 

 
           15,480,350
        

 

 

 
Electronic Equipment, Instruments & Components - 1.6%

Teledyne Technologies, Inc. (a)

       20,000       8,737,800
        

 

 

 
Food Products - 0.7%         

Mondelez International, Inc. - Class A

       54,000       3,580,740
        

 

 

 
Health Care Equipment & Supplies - 4.2%

Alcon, Inc. (b)

       60,000       5,227,200

Stryker Corp.

       20,000       5,348,400

Thermo Fisher Scientific, Inc.

       18,000       12,010,320
        

 

 

 
           22,585,920
        

 

 

 
COMMON STOCKS    Shares   Value
Household Durables - 1.0%         

Newell Brands, Inc.

       240,000     $ 5,241,600
        

 

 

 
Household Products - 2.2%         

Kimberly-Clark Corp.

       50,000       7,146,000

The Procter & Gamble Co.

       30,000       4,907,400
        

 

 

 
           12,053,400
        

 

 

 
Internet & Catalog Retail - 3.1%         

Amazon.com, Inc. (a)

       5,000       16,671,700
        

 

 

 
IT Consulting & Services - 2.1%         

PayPal Holdings, Inc. (a)

       60,000       11,314,800
        

 

 

 
Life Sciences Tools & Services - 2.7%         

Danaher Corp.

       45,000       14,805,450
        

 

 

 
Machinery - 7.7%         

Generac Holdings, Inc. (a)

       35,000       12,317,200

IDEX Corp.

       20,000       4,726,400

The Toro Co.

       74,000       7,393,340

Valmont Industries, Inc.

       40,000       10,020,000

Xylem, Inc.

       60,000       7,195,200
        

 

 

 
           41,652,140
        

 

 

 
Marine - 1.1%         

Kirby Corp. (a)

       100,000       5,942,000
        

 

 

 
Media & Entertainment - 4.2%         

Alphabet, Inc. - Class A (a)

       5,500       15,933,720

Meta Platforms, Inc. Class A (a)

       20,000       6,727,000
        

 

 

 
           22,660,720
        

 

 

 
Metals & Mining - 1.5%         

Newmont Goldcorp Corp.

       130,000       8,062,600
        

 

 

 
Oil & Gas & Consumable Fuels - 3.3%         

Chevron Corp.

       31,500       3,696,525

ConocoPhillips

       100,000       7,218,000

Coterra Energy, Inc.

       374,000       7,106,000
        

 

 

 
           18,020,525
        

 

 

 
Personal Products - 1.7%         

The Estee Lauder Cos., Inc. - Class A

       25,000       9,255,000
        

 

 

 
Pharmaceuticals - 4.9%         

Merck & Co., Inc.

       80,000       6,131,200

Pfizer, Inc.

       130,000       7,676,500

Zoetis, Inc.

       53,500       13,055,605
        

 

 

 
           26,863,305
        

 

 

 
Road & Rail - 1.1%         

Union Pacific Corp.

       24,000       6,046,320
        

 

 

 
Semiconductor & Semiconductor Equipment - 1.0%    

Intel Corp.

       110,000       5,665,000
        

 

 

 
Software - 10.6%         

Adobe, Inc. (a)

       28,000       15,877,680

Microsoft Corp.

       80,000       26,905,600

OneSpan Inc. (a)

       150,000       2,539,500

Oracle Corp.

       120,000       10,465,200
 

 

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

 

19


LKCM EQUITY FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

COMMON STOCKS    Shares   Value
Software - 10.6%, Continued         

Sprout Social, Inc. - Class A (a)

       20,000     $ 1,813,800
        

 

 

 
           57,601,780
        

 

 

 
Software & Services - 1.9%         

Akamai Technologies, Inc. (a)

       90,000       10,533,600
        

 

 

 
Specialty Retail - 2.3%         

The Home Depot, Inc.

       30,000       12,450,300
        

 

 

 
Textiles, Apparel & Luxury Goods - 1.3%    

VF Corp.

       100,000       7,322,000
        

 

 

 
Trading Companies & Distributors - 1.1%    

Fortress Transportation and Infrastructure Investors LLC

       200,000       5,784,000
        

 

 

 
TOTAL COMMON STOCKS
(Cost $215,420,195)
       522,322,340
        

 

 

 
        
SHORT-TERM INVESTMENTS - 3.8%
Money Market Funds - 3.8%         

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

       16,293,709       16,293,709

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

       4,363,453       4,363,453
        

 

 

 
           20,657,162
        

 

 

 
TOTAL SHORT-TERM INVESTMENTS
(Cost $20,657,162)
  20,657,162
        

 

 

 
Total Investments - 100.1%
(Cost $236,077,357)
       542,979,502

Liabilities in Excess of Other Assets - (0.1)%

 

      (283,146 )
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 542,696,356
        

 

 

 

 

(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, 2021

 

COMMON STOCKS - 69.7%    Shares       
Value
Aerospace & Defense - 2.3%         

Axon Enterprise, Inc. (a)

       5,500     $ 863,500

Honeywell International, Inc.

       5,100       1,063,401

L3Harris Technologies, Inc.

       6,300       1,343,412
        

 

 

 
           3,270,313
        

 

 

 
Banks - 3.7%         

Bank of America Corp.

       55,000       2,446,950

Cullen/Frost Bankers, Inc.

       10,900       1,374,163

Zions Bancorp N.A.

       23,500       1,484,260
        

 

 

 
           5,305,373
        

 

 

 
Beverages - 1.9%         

The Coca-Cola Co.

       28,100       1,663,801

PepsiCo, Inc.

       6,200       1,077,002
        

 

 

 
           2,740,803
        

 

 

 
Biotechnology - 1.1%         

Charles River Laboratories International, Inc. (a)

       4,200       1,582,476
        

 

 

 
Chemicals - 5.6%         

Air Products and Chemicals, Inc.

       5,000       1,521,300

Corteva, Inc.

       20,358       962,527

DuPont de Nemours, Inc.

       13,658       1,103,293

Ecolab, Inc.

       5,900       1,384,081

FMC Corp.

       12,600       1,384,614

Linde PLC (b)

       5,200       1,801,436
        

 

 

 
           8,157,251
        

 

 

 
Commercial Services & Supplies - 2.8%         

Cintas Corp.

       4,000       1,772,680

Waste Connections, Inc. (b)

       9,500       1,294,565

Waste Management, Inc.

       6,000       1,001,400
        

 

 

 
           4,068,645
        

 

 

 
Communications Equipment - 1.9%         

QUALCOMM, Inc.

       15,300       2,797,911
        

 

 

 
Computers & Peripherals - 2.1%         

Apple, Inc.

       17,200       3,054,204
        

 

 

 
Construction Materials - 1.2%         

Martin Marietta Materials, Inc.

       4,100       1,806,132
        

 

 

 
Diversified Financials - 2.1%         

JPMorgan Chase & Co.

       10,000       1,583,500

Moody’s Corp.

       3,800       1,484,204
        

 

 

 
           3,067,704
        

 

 

 
Diversified Telecommunication Services - 1.0%    

AT&T, Inc.

       25,189       619,650

Verizon Communications, Inc.

       15,841       823,098
        

 

 

 
           1,442,748
        

 

 

 
Electrical Equipment & Instruments - 1.9%

Emerson Electric Co.

       13,400       1,245,798

Rockwell Automation, Inc.

       4,500       1,569,825
        

 

 

 
           2,815,623
        

 

 

 
COMMON STOCKS    Shares       
Value
Electronic Equipment & Instruments - 1.5%    

National Instruments Corp.

       12,800     $ 558,976

Trimble, Inc. (a)

       18,100       1,578,139
        

 

 

 
           2,137,115
        

 

 

 
Electronic Equipment, Instruments & Components - 1.0%

Teledyne Technologies, Inc. (a)

       3,200       1,398,048
        

 

 

 
Food & Drug Retailing - 0.8%         

Walmart, Inc.

       7,900       1,143,051
        

 

 

 
Health Care Equipment & Supplies - 3.6%

Alcon, Inc. (b)

       20,800       1,812,096

PerkinElmer, Inc.

       10,100       2,030,706

Thermo Fisher Scientific, Inc.

       2,000       1,334,480
        

 

 

 
           5,177,282
        

 

 

 
Household Products - 1.7%         

Colgate-Palmolive Co.

       11,900       1,015,546

Kimberly-Clark Corp.

       6,000       857,520

The Procter & Gamble Co.

       3,500       572,530
        

 

 

 
           2,445,596
        

 

 

 
Internet & Catalog Retail - 1.3%         

Amazon.com, Inc. (a)

       550       1,833,887
        

 

 

 
IT Consulting & Services - 4.2%         

Black Knight, Inc. (a)

       19,400       1,608,066

Broadridge Financial Solutions, Inc.

       10,200       1,864,764

PayPal Holdings, Inc. (a)

       6,600       1,244,628

Visa, Inc. - Class A

       6,100       1,321,931
        

 

 

 
           6,039,389
        

 

 

 
Life Sciences Tools & Services - 1.3%         

Danaher Corp.

       5,500       1,809,555
        

 

 

 
Machinery - 1.4%         

Fortive Corp.

       10,100       770,529

Xylem, Inc.

       11,000       1,319,120
        

 

 

 
           2,089,649
        

 

 

 
Media & Entertainment - 4.7%         

Alphabet, Inc. - Class C (a)

       725       2,097,853

The Walt Disney Co. (a)

       11,400       1,765,746

Meta Platforms, Inc. Class A (a)

       5,400       1,816,290

Pinterest, Inc. - Class A (a)

       31,050       1,128,667
        

 

 

 
           6,808,556
        

 

 

 
Metals & Mining - 0.6%         

Newmont Goldcorp Corp.

       15,000       930,300
        

 

 

 
Oil & Gas & Consumable Fuels - 3.9%         

Chevron Corp.

       11,295       1,325,468

ConocoPhillips

       17,900       1,292,022

Coterra Energy, Inc.

       25,900       492,100

EOG Resources, Inc.

       4,800       426,384

Kinder Morgan, Inc.

       65,000       1,030,900

Pioneer Natural Resources Co.

       6,100       1,109,468
        

 

 

 
           5,676,342
        

 

 

 
 

 

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

 

21


LKCM BALANCED FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

COMMON STOCKS    Shares       
Value
Personal Products - 1.0%         

The Estee Lauder Cos., Inc. - Class A

       4,000     $ 1,480,800
        

 

 

 
Pharmaceuticals - 3.4%         

Abbott Laboratories

       10,800       1,519,992

Merck & Co., Inc.

       16,400       1,256,896

Zoetis, Inc.

       8,626       2,105,003
        

 

 

 
           4,881,891
        

 

 

 
Real Estate Investment Trusts - 1.2%         

American Tower Corp.

       5,900       1,725,750
        

 

 

 
Road & Rail - 1.0%         

Union Pacific Corp.

       5,700       1,436,001
        

 

 

 
Software - 4.8%         

Adobe, Inc. (a)

       2,000       1,134,120

Microsoft Corp.

       7,300       2,455,136

Oracle Corp.

       17,800       1,552,338

salesforce.com, Inc. (a)

       7,400       1,880,562
        

 

 

 
           7,022,156
        

 

 

 
Software & Services - 1.1%         

Akamai Technologies, Inc. (a)

       13,800       1,615,152
        

 

 

 
Specialty Retail - 1.5%         

The Home Depot, Inc.

       5,300       2,199,553
        

 

 

 
Textiles, Apparel & Luxury Goods - 2.1%    

NIKE, Inc. - Class B

       10,800       1,800,036

VF Corp.

       16,700       1,222,774
        

 

 

 
           3,022,810
        

 

 

 

TOTAL COMMON STOCKS
(Cost $51,921,320)

           100,982,066
        

 

 

 
        
CORPORATE BONDS - 29.5%    Principal
Amount
    
Aerospace & Defense - 1.5%         

Honeywell International, Inc.:

        

2.300%, 08/15/2024

        

Callable 07/15/2024

     $ 250,000       258,536

1.350%, 06/01/2025

        

Callable 05/01/2025

       750,000       753,833

L3Harris Technologies, Inc.

        

3.850%, 06/15/2023

        

Callable 05/15/2023

       900,000       935,189

Raytheon Technologies Corp.

        

3.700%, 12/15/2023

        

Callable 09/15/2023

       250,000       262,133
        

 

 

 
           2,209,691
        

 

 

 
Air Freight & Logistics - 0.4%         

United Parcel Service, Inc.

        

2.450%, 10/01/2022

       600,000       608,766
        

 

 

 
Banks - 1.8%         

Bank of America Corp.

        

3.300%, 01/11/2023

       500,000       513,848
CORPORATE BONDS    Principal
Amount
  Value
Banks - 1.8%, Continued         

Comerica Bank

        

2.500%, 07/23/2024

     $ 300,000     $ 310,108

Comerica, Inc.

        

3.700%, 07/31/2023

        

Callable 06/30/2023

       475,000       494,516

The Bank of New York Mellon Corp.

        

2.200%, 08/16/2023

        

Callable 06/16/2023

       200,000       204,425

Truist Bank:

        

3.200%, 04/01/2024

        

Callable 03/01/2024

       250,000       261,866

4.050%, 11/03/2025

        

Callable 09/03/2025

       385,000       420,798

3.300%, 05/15/2026

        

Callable 04/15/2026

       400,000       426,003
        

 

 

 
           2,631,564
        

 

 

 
Beverages - 1.0%         

Keurig Dr Pepper, Inc.

        

2.550%, 09/15/2026

        

Callable 06/15/2026

       1,000,000       1,033,537

PepsiCo, Inc.

        

2.375%, 10/06/2026

        

Callable 07/06/2026

       435,000       454,833
        

 

 

 
           1,488,370
        

 

 

 
Biotechnology - 1.3%         

AbbVie, Inc.:

        

2.850%, 05/14/2023

        

Callable 03/14/2023

       525,000       536,847

3.200%, 05/14/2026

        

Callable 02/14/2026

       600,000       636,963

Amgen, Inc.:

        

3.625%, 05/22/2024

        

Callable 02/22/2024

       250,000       263,485

2.600%, 08/19/2026

        

Callable 05/19/2026

       450,000       469,863
        

 

 

 
           1,907,158
        

 

 

 
Chemicals - 0.8%         

Air Products and Chemicals, Inc.

        

1.850%, 05/15/2027

        

Callable 03/15/2027

       675,000       685,542

Ecolab, Inc.

        

2.700%, 11/01/2026

        

Callable 08/01/2026

       500,000       525,652
        

 

 

 
           1,211,194
        

 

 

 
Communications Equipment - 1.0%         

Cisco Systems, Inc.

        

2.200%, 09/20/2023

        

Callable 07/20/2023

       750,000       768,950

QUALCOMM, Inc.

        

2.900%, 05/20/2024

        

Callable 03/20/2024

       600,000       625,723
        

 

 

 
           1,394,673
        

 

 

 
 

 

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

 

22


LKCM BALANCED FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

CORPORATE BONDS    Principal
Amount
  Value
Computers & Peripherals - 0.2%         

Apple, Inc.:

        

2.500%, 02/09/2025

     $ 250,000     $ 260,427

3.200%, 05/13/2025

       55,000       58,594
        

 

 

 
           319,021
        

 

 

 
Consumer Finance - 0.8%         

American Express Co.:

        

3.400%, 02/27/2023

        

Callable 01/27/2023

       125,000       128,649

3.700%, 08/03/2023

        

Callable 07/03/2023

       300,000       312,930

3.000%, 10/30/2024

        

Callable 09/29/2024

       650,000       681,791
        

 

 

 
           1,123,370
        

 

 

 
Diversified Financials - 0.6%         

JPMorgan Chase & Co.:

        

3.250%, 09/23/2022

       100,000       102,024

3.375%, 05/01/2023

       225,000       232,057

3.875%, 02/01/2024

       275,000       291,318

3.200%, 06/15/2026

        

Callable 03/15/2026

       200,000       212,407
        

 

 

 
           837,806
        

 

 

 
Diversified Telecommunication Services - 1.5%    

AT&T, Inc.:

        

3.400%, 05/15/2025

        

Callable 02/15/2025

       850,000       899,013

1.700%, 03/25/2026

        

Callable 03/25/2023

       250,000       249,082

Verizon Communications, Inc.:

        

3.500%, 11/01/2024

        

Callable 08/01/2024

       750,000       798,721

2.625%, 08/15/2026

       250,000       260,697
        

 

 

 
           2,207,513
        

 

 

 
Electrical Equipment & Instruments - 0.6%

Emerson Electric Co.:

        

2.625%, 02/15/2023

        

Callable 11/15/2022

       400,000       406,602

3.150%, 06/01/2025

        

Callable 03/01/2025

       200,000       211,157

Roper Technologies, Inc.

        

1.000%, 09/15/2025

        

Callable 08/15/2025

       250,000       244,592
        

 

 

 
           862,351
        

 

 

 
Electronic Equipment & Instruments - 0.4%    

Trimble, Inc.

        

4.150%, 06/15/2023

        

Callable 05/15/2023

       500,000       520,229
        

 

 

 
Food & Drug Retailing - 0.7%         

Walmart, Inc.:

        

2.350%, 12/15/2022

        

Callable 11/15/2022

       300,000       305,043
CORPORATE BONDS    Principal
Amount
  Value
Food & Drug Retailing - 0.7%, Continued    

3.550%, 06/26/2025

        

Callable 04/26/2025

     $ 700,000     $ 756,384
        

 

 

 
           1,061,427
        

 

 

 
Food & Staples Retailing - 0.5%         

Costco Wholesale Corp.

        

1.375%, 06/20/2027

        

Callable 04/20/2027

       690,000       685,628
        

 

 

 
Hotels, Restaurants & Leisure - 0.4%         

McDonald’s Corp.

        

1.450%, 09/01/2025

        

Callable 08/01/2025

       600,000       606,151
        

 

 

 
Internet & Catalog Retail - 0.6%         

Amazon.com, Inc.:

        

2.400%, 02/22/2023

        

Callable 01/22/2023

       550,000       560,380

1.200%, 06/03/2027

        

Callable 04/03/2027

       260,000       256,698
        

 

 

 
           817,078
        

 

 

 
IT Services - 1.2%         

PayPal Holdings, Inc.

        

1.650%, 06/01/2025

        

Callable 05/01/2025

       1,250,000       1,266,781

Visa, Inc.

        

1.900%, 04/15/2027

        

Callable 02/15/2027

       500,000       507,250
        

 

 

 
           1,774,031
        

 

 

 
Life Sciences Tools & Services - 0.9%         

Danaher Corp.

        

3.350%, 09/15/2025

        

Callable 06/15/2025

       250,000       266,524

Thermo Fisher Scientific, Inc.

        

1.215%, 10/18/2024

        

Callable 10/18/2022

       1,000,000       999,604
        

 

 

 
           1,266,128
        

 

 

 
Machinery - 0.5%         

Illinois Tool Works, Inc.

        

3.500%, 03/01/2024

        

Callable 12/01/2023

       715,000       749,215
        

 

 

 
Media & Entertainment - 1.2%         

Alphabet, Inc.:

        

3.375%, 02/25/2024

       600,000       632,610

1.998%, 08/15/2026

        

Callable 05/15/2026

       200,000       206,429

The Walt Disney Co.

        

1.750%, 08/30/2024

        

Callable 07/30/2024

       810,000       823,468
        

 

 

 
           1,662,507
        

 

 

 
 

 

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

 

23


LKCM BALANCED FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

CORPORATE BONDS    Principal
Amount
  Value
Oil & Gas & Consumable Fuels - 3.0%         

Chevron Corp.

        

1.995%, 05/11/2027

        

Callable 03/11/2027

     $ 400,000     $ 406,523

ConocoPhillips

        

2.400%, 12/15/2022

        

Callable 09/15/2022

       490,000       495,998

Enterprise Products Operating, LLC

        

3.750%, 02/15/2025

        

Callable 11/15/2024

       300,000       319,116

EOG Resources, Inc.

        

2.625%, 03/15/2023

        

Callable 12/15/2022

       600,000       610,364

Exxon Mobil Corp.:

        

2.709%, 03/06/2025

        

Callable 12/06/2024

       255,000       265,421

3.043%, 03/01/2026

        

Callable 12/01/2025

       400,000       423,764

Kinder Morgan Energy Partners, L.P.

        

3.950%, 09/01/2022

        

Callable 06/01/2022

       400,000       405,406

3.450%, 02/15/2023

        

Callable 11/15/2022

       425,000       434,132

Kinder Morgan, Inc.

        

3.150%, 01/15/2023

        

Callable 12/15/2022

       500,000       510,712

Schlumberger Investment SA

        

3.650%, 12/01/2023

        

Callable 09/01/2023 (b)

       500,000       522,493
        

 

 

 
           4,393,929
        

 

 

 
Personal Products - 0.6%    

The Estee Lauder Cos., Inc.

        

2.000%, 12/01/2024

        

Callable 11/01/2024

       805,000       827,611
        

 

 

 
Pharmaceuticals - 2.2%    

Abbott Laboratories:

        

3.400%, 11/30/2023

        

Callable 09/30/2023

       480,000       502,788

3.875%, 09/15/2025

        

Callable 06/15/2025

       255,000       277,277

Bristol-Myers Squibb Co.:

        

2.750%, 02/15/2023

        

Callable 01/15/2023

       650,000       664,889

3.625%, 05/15/2024

        

Callable 02/15/2024

       250,000       263,587

Johnson & Johnson

        

0.550%, 09/01/2025

        

Callable 08/01/2025

       735,000       719,132

Pfizer, Inc.

        

0.800%, 05/28/2025

        

Callable 04/28/2025

       800,000       791,038
        

 

 

 
           3,218,711
        

 

 

 
CORPORATE BONDS    Principal
Amount
  Value
Real Estate Investment Trusts - 0.9%    

American Tower Corp.:

        

2.400%, 03/15/2025

        

Callable 02/15/2025

     $ 600,000     $ 616,778

3.375%, 10/15/2026

        

Callable 07/15/2026

       635,000       675,514
        

 

 

 
           1,292,292
        

 

 

 
Road & Rail - 0.6%    

Burlington Northern Santa Fe, LLC

        

3.000%, 03/15/2023

        

Callable 12/15/2022

       600,000       612,188

Union Pacific Corp.

        

3.750%, 07/15/2025

        

Callable 05/15/2025

       200,000       216,307
        

 

 

 
           828,495
        

 

 

 
Semiconductor Equipment & Products - 0.4%    

Intel Corp.

        

3.700%, 07/29/2025

        

Callable 04/29/2025

       500,000       540,171
        

 

 

 
Software - 2.8%         

Adobe, Inc.

        

1.900%, 02/01/2025

        

Callable 01/01/2025

       1,005,000       1,030,122

Fortinet, Inc.

        

1.000%, 03/15/2026

        

Callable 02/15/2026

       1,360,000       1,319,358

Microsoft Corp.:

        

2.375%, 02/12/2022

        

Callable 01/12/2022

       400,000       400,168

3.125%, 11/03/2025

        

Callable 08/03/2025

       230,000       245,671

Oracle Corp.:

        

2.500%, 04/01/2025

        

Callable 03/01/2025

       500,000       512,254

2.950%, 05/15/2025

        

Callable 02/15/2025

       500,000       519,751
        

 

 

 
           4,027,324
        

 

 

 
Specialty Retail - 1.1%    

Lowe’s Cos, Inc.

        

2.500%, 04/15/2026

        

Callable 01/15/2026

       800,000       834,006

The Home Depot, Inc.:

        

2.625%, 06/01/2022

        

Callable 05/01/2022

       290,000       292,247

2.800%, 09/14/2027

        

Callable 06/14/2027

       500,000       530,957
        

 

 

 
           1,657,210
        

 

 

 

TOTAL CORPORATE BONDS
(Cost $42,356,035)

           42,729,614
        

 

 

 
 

 

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

 

24


LKCM BALANCED FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

SHORT-TERM INVESTMENTS - 0.6%    Shares       
Value
Money Market Funds - 0.6%         

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

       865,401     $ 865,401
        

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $865,401)

 

      865,401
        

 

 

 

Total Investments - 99.8%
(Cost $95,142,756)

           144,577,081

Other Assets in Excess of Liabilities - 0.2%

 

      323,532
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 144,900,613
        

 

 

 

 

(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.

 

25


LKCM FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
December 31, 2021

 

CORPORATE BONDS - 75.5%    Principal
Amount
  Value
Aerospace & Defense - 4.9%         

Honeywell International, Inc.:

        

2.300%, 08/15/2024

        

Callable 07/15/2024

     $ 3,105,000     $ 3,211,009

1.350%, 06/01/2025

        

Callable 05/01/2025

       3,000,000       3,015,334

L3Harris Technologies, Inc.

        

3.850%, 06/15/2023

        

Callable 05/15/2023

       6,245,000       6,489,176

Raytheon Technologies Corp.

        

3.700%, 12/15/2023

        

Callable 09/15/2023

       1,750,000       1,834,931
        

 

 

 
           14,550,450
        

 

 

 
Air Freight & Logistics - 1.0%         

United Parcel Service, Inc.

        

2.450%, 10/01/2022

       3,000,000       3,043,828
        

 

 

 
Banks - 5.4%         

Bank of America Corp.:

        

3.300%, 01/11/2023

       2,000,000       2,055,394

4.450%, 03/03/2026

       2,000,000       2,205,151

Comerica, Inc.

        

3.700%, 07/31/2023

        

Callable 06/30/2023

       2,000,000       2,082,175

The Bank of New York Mellon Corp.

        

2.800%, 05/04/2026

        

Callable 02/04/2026

       300,000       314,794

Truist Bank:

        

3.200%, 04/01/2024

        

Callable 03/01/2024

       2,500,000       2,618,657

3.300%, 05/15/2026

        

Callable 04/15/2026

       4,333,000       4,614,677

Wells Fargo & Co.

        

4.125%, 08/15/2023

       2,000,000       2,098,851
        

 

 

 
           15,989,699
        

 

 

 
Beverages - 0.8%         

Keurig Dr Pepper, Inc.

        

2.550%, 09/15/2026

        

Callable 06/15/2026

       2,225,000       2,299,620
        

 

 

 
Biotechnology - 2.8%         

AbbVie, Inc.

        

2.900%, 11/06/2022

       2,115,000       2,154,401

Amgen, Inc.:

        

2.250%, 08/19/2023

        

Callable 06/19/2023

       2,350,000       2,401,787

2.600%, 08/19/2026

        

Callable 05/19/2026

       1,000,000       1,044,139

2.200%, 02/21/2027

        

Callable 12/21/2026

       2,500,000       2,562,241
        

 

 

 
           8,162,568
        

 

 

 
CORPORATE BONDS    Principal
Amount
  Value
Chemicals - 2.1%         

Air Products and Chemicals, Inc.

        

1.500%, 10/15/2025

        

Callable 09/15/2025

     $ 4,000,000     $ 4,018,065

Ecolab, Inc.

        

2.700%, 11/01/2026

        

Callable 08/01/2026

       2,000,000       2,102,608
        

 

 

 
           6,120,673
        

 

 

 
Communications Equipment - 1.4%         

QUALCOMM, Inc.

        

2.900%, 05/20/2024

        

Callable 03/20/2024

       4,000,000       4,171,490
        

 

 

 
Computers & Peripherals - 2.0%         

Apple, Inc.:

        

2.400%, 05/03/2023

       3,250,000       3,328,736

2.500%, 02/09/2025

       2,515,000       2,619,901
        

 

 

 
           5,948,637
        

 

 

 
Consumer Finance - 3.7%         

American Express Co.:

        

2.500%, 08/01/2022

        

Callable 07/01/2022

       3,000,000       3,031,199

3.400%, 02/27/2023

        

Callable 01/27/2023

       2,500,000       2,572,976

2.500%, 07/30/2024

        

Callable 06/30/2024

       1,063,000       1,099,055

3.000%, 10/30/2024

        

Callable 09/29/2024

       2,000,000       2,097,820

4.200%, 11/06/2025

        

Callable 10/06/2025

       2,000,000       2,202,419
        

 

 

 
           11,003,469
        

 

 

 
Containers & Packaging - 1.6%         

Ball Corp.

        

5.250%, 07/01/2025

       4,252,000       4,692,571
        

 

 

 
Diversified Financials - 4.1%         

JPMorgan Chase & Co.:

        

3.375%, 05/01/2023

       3,788,000       3,906,818

2.700%, 05/18/2023

        

Callable 03/18/2023

       1,855,000       1,897,803

3.875%, 02/01/2024

       1,750,000       1,853,840

3.300%, 04/01/2026

        

Callable 01/01/2026

       3,500,000       3,736,014

3.200%, 06/15/2026

        

Callable 03/15/2026

       636,000       675,454
        

 

 

 
           12,069,929
        

 

 

 
Diversified Telecommunication Services - 6.9%    

AT&T, Inc.:

        

3.000%, 06/30/2022

        

Callable 04/30/2022

       2,230,000       2,247,161

1.700%, 03/25/2026

        

Callable 03/25/2023

       1,450,000       1,444,674
 

 

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

 

26


LKCM FIXED INCOME FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

CORPORATE BONDS    Principal
Amount
  Value
Diversified Telecommunication Services - 6.9%, Continued

3.800%, 02/15/2027

        

Callable 11/15/2026

     $ 2,000,000     $ 2,174,720

4.250%, 03/01/2027

        

Callable 12/01/2026

       4,000,000       4,442,727

Verizon Communications, Inc.:

        

3.500%, 11/01/2024

        

Callable 08/01/2024

       1,750,000       1,863,682

4.125%, 03/16/2027

       2,000,000       2,224,758

2.100%, 03/22/2028

        

Callable 01/22/2028

       6,000,000       6,020,656
        

 

 

 
           20,418,378
        

 

 

 
Electrical Equipment & Instruments - 2.8%    

Emerson Electric Co.

        

3.150%, 06/01/2025

        

Callable 03/01/2025

       6,500,000       6,862,589

Rockwell Automation, Inc.

        

2.875%, 03/01/2025

        

Callable 12/01/2024

       1,440,000       1,505,973
        

 

 

 
           8,368,562
        

 

 

 
Electronic Equipment & Instruments - 1.6%    

Trimble, Inc.

        

4.150%, 06/15/2023

        

Callable 05/15/2023

       4,500,000       4,682,061
        

 

 

 
Household Products - 0.3%    

The Procter & Gamble Co.

        

8.000%, 09/01/2024

       775,000       911,502
        

 

 

 
Internet & Catalog Retail - 0.9%         

Amazon.com, Inc.

        

2.500%, 11/29/2022

        

Callable 08/29/2022

       2,500,000       2,537,790
        

 

 

 
IT Services - 0.7%    

PayPal Holdings, Inc.

        

1.650%, 06/01/2025

        

Callable 05/01/2025

       1,860,000       1,884,970
        

 

 

 
Life Sciences Tools & Services - 3.3%    

Danaher Corp.

        

3.350%, 09/15/2025

        

Callable 06/15/2025

       5,500,000       5,863,535

Thermo Fisher Scientific, Inc.

        

1.215%, 10/18/2024

        

Callable 10/18/2022

       4,000,000       3,998,414
        

 

 

 
           9,861,949
        

 

 

 
Media & Entertainment - 2.0%    

Alphabet, Inc.:

        

3.375%, 02/25/2024

       4,000,000       4,217,401

1.998%, 08/15/2026

        

Callable 05/15/2026

       1,725,000       1,780,453
        

 

 

 
           5,997,854
        

 

 

 
CORPORATE BONDS    Principal
Amount
  Value
Oil & Gas & Consumable Fuels - 5.2%    

Chevron Corp.:

        

2.411%, 03/03/2022

        

Callable 01/03/2022

     $ 1,450,000     $ 1,452,187

2.355%, 12/05/2022

        

Callable 09/05/2022

       1,000,000       1,012,817

2.954%, 05/16/2026

        

Callable 02/16/2026

       1,870,000       1,982,749

Enterprise Products Operating, LLC

        

3.750%, 02/15/2025

        

Callable 11/15/2024

       2,963,000       3,151,801

Kinder Morgan Energy Partners, L.P.

        

4.250%, 09/01/2024

        

Callable 06/01/2024

       3,000,000       3,201,272

Kinder Morgan, Inc.

        

3.150%, 01/15/2023

        

Callable 12/15/2022

       4,350,000       4,443,190
        

 

 

 
           15,244,016
        

 

 

 
Personal Products - 0.2%    

The Estee Lauder Cos., Inc.

        

2.000%, 12/01/2024

        

Callable 11/01/2024

       556,000       571,617
        

 

 

 
Pharmaceuticals - 4.3%    

Abbott Laboratories:

        

3.400%, 11/30/2023

        

Callable 09/30/2023

       1,750,000       1,833,080

2.950%, 03/15/2025

        

Callable 12/15/2024

       3,925,000       4,125,537

Bristol-Myers Squibb Co.

        

3.625%, 05/15/2024

        

Callable 02/15/2024

       4,750,000       5,008,158

Zoetis, Inc.

        

3.250%, 02/01/2023

        

Callable 11/01/2022

       1,664,000       1,696,089
        

 

 

 
           12,662,864
        

 

 

 
Real Estate Investment Trusts - 3.9%    

American Tower Corp.:

        

2.250%, 01/15/2022

       1,000,000       1,000,545

3.500%, 01/31/2023

       3,500,000       3,595,103

5.000%, 02/15/2024

       2,500,000       2,692,053

3.375%, 10/15/2026

        

Callable 07/15/2026

       4,030,000       4,287,119
        

 

 

 
           11,574,820
        

 

 

 
Road & Rail - 4.5%    

Burlington Northern Santa Fe, LLC:

        

3.000%, 03/15/2023

        

Callable 12/15/2022

       4,695,000       4,790,375

3.000%, 04/01/2025

        

Callable 01/01/2025

       2,250,000       2,365,562
 

 

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

 

27


LKCM FIXED INCOME FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

CORPORATE BONDS    Principal
Amount
  Value
Road & Rail - 4.5%, Continued    

Union Pacific Corp.:

        

2.950%, 03/01/2022

     $ 1,390,000     $ 1,395,051

3.250%, 01/15/2025

        

Callable 10/15/2024

       1,500,000       1,579,221

3.750%, 07/15/2025

        

Callable 05/15/2025

       3,025,000       3,271,636
        

 

 

 
           13,401,845
        

 

 

 
Semiconductor Equipment & Products - 0.8%    

Intel Corp.

        

3.700%, 07/29/2025

        

Callable 04/29/2025

       2,250,000       2,430,770
        

 

 

 
Semiconductors & Semiconductor Equipment - 1.4%    

NVIDIA Corp.

        

1.550%, 06/15/2028

        

Callable 04/15/2028

       4,000,000       3,974,422
        

 

 

 
Software - 4.9%    

Adobe, Inc.

        

1.900%, 02/01/2025

        

Callable 01/01/2025

       4,280,000       4,386,988

Oracle Corp.:

        

2.500%, 10/15/2022

       3,000,000       3,043,331

2.650%, 07/15/2026

        

Callable 04/15/2026

       2,000,000       2,058,615

3.250%, 11/15/2027

        

Callable 08/15/2027

       2,000,000       2,108,606

2.300%, 03/25/2028

        

Callable 01/25/2028

       3,000,000       2,994,279
        

 

 

 
           14,591,819
        

 

 

 
Specialty Retail - 2.0%    

Lowe’s Cos, Inc.

        

2.500%, 04/15/2026

        

Callable 01/15/2026

       1,000,000       1,042,507

The Home Depot, Inc.:

        

2.625%, 06/01/2022

        

Callable 05/01/2022

       2,125,000       2,141,470

2.700%, 04/01/2023

        

Callable 01/01/2023

       2,750,000       2,805,810
        

 

 

 
           5,989,787
        

 

 

 

TOTAL CORPORATE BONDS
(Cost $218,729,378)

           223,157,960
        

 

 

 
        
U.S. GOVERNMENT ISSUES - 6.0%           
U.S. Treasury Inflation Indexed Bonds - 1.5%    

0.625%, 01/15/2024

       4,148,900       4,416,404
        

 

 

 
U.S. Treasury Notes - 4.5%         

1.125%, 02/28/2022

       2,000,000       2,003,325

1.750%, 07/15/2022

       2,000,000       2,016,069

1.375%, 02/15/2023

       2,000,000       2,021,211

2.000%, 02/15/2023

       2,000,000       2,034,727
U.S. GOVERNMENT ISSUES    Principal
Amount
  Value
U.S. Treasury Notes - 4.5%, Continued         

2.000%, 02/15/2025

     $ 2,000,000     $ 2,060,937

2.000%, 08/15/2025

       1,000,000       1,031,875

1.625%, 02/15/2026

       2,000,000       2,035,625
        

 

 

 
           13,203,769
        

 

 

 

TOTAL U.S. GOVERNMENT ISSUES
(Cost $17,175,050)

 

      17,620,173
        

 

 

 
        
U.S. GOVERNMENT SPONSORED
ENTITIES - 16.6%
          
Fannie Mae - 0.6%    

0.500%, 06/17/2025

       1,852,000       1,816,075
        

 

 

 
Federal Home Loan Banks - 14.8%         

0.500%, 12/17/2024 (a)

        

Callable 03/17/2022

       2,500,000       2,500,087

0.500%, 10/28/2025 (a)

        

Callable 10/28/2022

       3,000,000       2,989,487

0.300%, 01/27/2026 (a)

        

Callable 01/27/2022

       3,000,000       2,953,928

2.375%, 03/13/2026

       3,575,000       3,747,897

0.500%, 03/30/2026 (a)

        

Callable 03/30/2022

       3,000,000       2,974,487

0.500%, 05/26/2026 (a)

        

Callable 02/26/2022

       2,500,000       2,478,384

0.625%, 10/28/2026 (a)

        

Callable 01/28/2022

       3,000,000       2,992,461

1.250%, 11/10/2026

        

Callable 11/10/2022

       3,000,000       2,993,122

0.650%, 01/27/2028 (a)

        

Callable 01/27/2022

       4,000,000       3,905,739

1.000%, 11/16/2028 (a)

        

Callable 05/16/2022

       3,000,000       2,992,367

2.820%, 06/27/2029

        

Callable 06/27/2022

       4,000,000       4,041,213

1.000%, 01/27/2031 (a)

        

Callable 01/27/2022

       4,000,000       3,907,318

1.000%, 09/30/2031 (a)

        

Callable 03/30/2022

       3,000,000       2,949,038

1.250%, 12/15/2033 (a)

        

Callable 03/15/2022

       2,500,000       2,496,982
        

 

 

 
           43,922,510
        

 

 

 
Freddie Mac - 1.2%         

0.750%, 05/28/2025

        

Callable 05/28/2022

       3,500,000       3,464,515
        

 

 

 

TOTAL U.S. GOVERNMENT SPONSORED ENTITIES
(Cost $49,685,094)

           49,203,100
        

 

 

 
 

 

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

 

28


LKCM FIXED INCOME FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

SHORT-TERM INVESTMENTS - 1.4%    Shares       
Value
Money Market Funds - 1.4%         

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

       4,182,867     $ 4,182,867
        

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $4,182,867)

 

      4,182,867
        

 

 

 

Total Investments - 99.5%
(Cost $289,772,389)

           294,164,100

Other Assets in Excess of Liabilities - 0.5%

 

      1,580,636
        

 

 

 

TOTAL NET ASSETS - 100.0%

         $ 295,744,736
        

 

 

 

 

(a)

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(b)

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.

 

29


LKCM INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
December 31, 2021

 

COMMON STOCKS - 94.5%    Shares   Value
AUSTRALIA - 4.1%         
Diversified Operations - 1.8%         

BHP Billiton Ltd.

       34,000     $ 1,026,516
        

 

 

 
Pharmaceuticals - 2.3%    

CSL Ltd.

       5,950       1,258,424
        

 

 

 

Total Australia

           2,284,940
        

 

 

 
FINLAND - 2.3%         
Banks - 2.3%         

Nordea Bank Abp

       106,500       1,299,146
        

 

 

 

Total Finland

           1,299,146
        

 

 

 
FRANCE - 12.7%         
Chemicals - 2.2%         

Air Liquide SA

       7,150       1,246,989
        

 

 

 
Electrical Equipment & Instruments - 3.1%    

Schneider Electric SA

       8,600       1,690,719
        

 

 

 
IT Consulting & Services - 2.8%    

Cap Gemini

       6,300       1,544,006
        

 

 

 
Oil & Gas & Consumable Fuels - 1.6%    

TOTAL SA

       17,000       865,303
        

 

 

 
Specialty Retail - 3.0%    

LVMH Moet Hennessy Louis Vuitton SE

       2,040       1,685,923
        

 

 

 

Total France

           7,032,940
        

 

 

 
GERMANY - 11.3%         
Insurance - 2.0%         

Allianz SE

       4,600       1,084,949
        

 

 

 
Machinery - 2.4%    

KION Group AG

       12,250       1,338,014
        

 

 

 
Semiconductor Equipment & Products - 2.5%    

Infineon Technologies AG

       31,020       1,428,112
        

 

 

 
Software - 2.3%    

SAP SE

       9,000       1,266,654
        

 

 

 
Textiles, Apparel & Luxury Goods - 2.1%         

Adidas AG

       4,100       1,180,574
        

 

 

 

Total Germany

           6,298,303
        

 

 

 
IRELAND - 2.5%         
Construction Materials - 2.5%         

CRH PLC

       26,250       1,389,674
        

 

 

 

Total Ireland

           1,389,674
        

 

 

 
ITALY - 1.9%         
Textiles, Apparel & Luxury Goods - 1.9%         

Moncler SpA

       14,500       1,047,889
        

 

 

 

Total Italy

           1,047,889
        

 

 

 
JAPAN - 8.5%         
Building Products - 2.3%         

Daikin Industries Ltd.

       5,450       1,234,530
        

 

 

 
COMMON STOCKS    Shares   Value
Computers & Peripherals - 2.0%         

Nidec Corp.

       9,500     $ 1,123,797
        

 

 

 
Food & Drug Retailing - 1.1%         

Tsuruha Holdings, Inc.

       6,600       633,724
        

 

 

 
Media & Entertainment - 2.0%         

Nintendo Co., Ltd.

       2,350       1,099,465
        

 

 

 
Personal Products - 1.1%         

Shiseido Co., Ltd.

       11,000       613,652
        

 

 

 

Total Japan

           4,705,168
        

 

 

 
NETHERLANDS - 9.6%         
Banks - 2.2%         

ING Groep NV

       89,000       1,237,366
        

 

 

 
Capital Markets - 2.3%         

Euronext NV

       12,250       1,273,557
        

 

 

 
Professional Services - 2.4%         

Wolters Kluwer NV

       11,250       1,324,134
        

 

 

 
Semiconductor Equipment & Products - 2.7%

ASML Holding NV

       1,875       1,501,912
        

 

 

 

Total Netherlands

           5,336,969
        

 

 

 
NORWAY - 1.4%         
Chemicals - 1.4%         

Elkem ASA

       225,000       758,364
        

 

 

 

Total Norway

           758,364
        

 

 

 
SPAIN - 2.7%         
Machinery - 2.7%         

Fluidra SA

       37,500       1,495,582
        

 

 

 

Total Spain

           1,495,582
        

 

 

 
SWEDEN - 5.1%         
Hotels, Restaurants & Leisure - 2.4%         

Evolution AB

       9,250       1,307,404
        

 

 

 
Oil & Gas & Consumable Fuels - 1.5%         

Lundin Petroleum AB

       23,000       823,004
        

 

 

 
Tobacco - 1.2%         

SWEDISH MATCH

       85,000       674,788
        

 

 

 

Total Sweden

           2,805,196
        

 

 

 
SWITZERLAND - 14.5%         
Banks - 2.4%         

Julius Baer Group Ltd.

       19,500       1,304,010
        

 

 

 
Electrical Equipment & Instruments - 2.6%         

ABB Ltd.

       37,892       1,444,170
        

 

 

 
Health Care Equipment & Supplies - 2.6%         

Alcon, Inc.

       16,175       1,426,722
        

 

 

 
Pharmaceuticals - 5.1%         

Lonza Group AG

       1,675       1,394,586

Roche Holding AG

       3,500       1,452,015
        

 

 

 
           2,846,601
        

 

 

 
 

 

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

 

30


LKCM INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 2021

 

COMMON STOCKS    Shares   Value
Software - 1.8%         

Temenos AG

       7,275     $ 1,002,796
        

 

 

 

Total Switzerland

           8,024,299
        

 

 

 
UNITED KINGDOM - 17.9%         
Banks - 2.3%         

Barclays PLC

       500,000