LKCM Funds N-CSRSCertified semi-annual shareholder report (management investment company)

As filed with the U.S. Securities and Exchange Commission on September 6, 2023

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: June 30, 2023

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

Semi-Annual Report

June 30, 2023

Dear Fellow Shareholders:

We report the following performance information for the LKCM Funds for indicated periods ended June 30, 2023:

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 their 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. Returns would have been lower if Luther King Capital Management Corporation, the Funds’ investment adviser, had not waived a portion of its management fee and/or reimbursed certain expenses of the Funds. 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 Funds. The Funds impose a 1.00% redemption fee on shares held less than 30 days. The performance data does not reflect the deduction of the redemption fee. If reflected, the fee would reduce performance shown.

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

1H2023 Review

The key domestic economic themes remained largely unchanged during the first half of 2023. Households appear to have exceptionally healthy balance sheets. We believe the self-sustaining cycle of employment, income, and spending are supporting economic growth. A recent spate of stronger economic readings appears to have allayed recession fears gauging from the recent uptick in investor sentiment and positive equity market returns. The Federal Reserve has seemingly delivered an appropriate amount of monetary tightening via higher interest rates to trigger disinflation. However, there appears to be some debate among members of the Federal Open Market Committee (“FOMC”) as to the economic impact of past interest rates hikes. This debate raises the important question of whether the economy will experience the true impact of monetary tightness or more tightening will be required to reduce inflation to the Federal Reserve’s stated target of 2.0%.

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We believe the severe economic downturn which would have accompanied the pandemic lockdown was short circuited by massive policy stimulus. This action fueled a boom in cryptocurrencies, equity markets, real estate, and ultimately inflation. The boom then had to be countered by the current restrictive monetary policy. The Federal Reserve has tightened monetary policy at the fastest pace in four decades and the money supply is contracting for the first time since the 1940s. Reflexively, the financial dominos have fallen in the same order in which they rose with the declines in cryptocurrencies, compression of equity market values, and softer home prices last year. We believe the final step in this sequence should be the retreat of high inflation. We believe the battle against inflation has made significant progress, although official victory may yet be a year away because of the manner in which shelter inflation is measured. We believe this elevates the risk of a “policy mistake” by the Federal Reserve to the extent it believes there is much more work to be done to fight inflation.

Ironically, we think that the U.S. economy may be its most vulnerable at the time investors believe the Federal Reserve has engineered a “soft landing,” or defeating inflation while avoiding a recession. As aggregate demand declines, generally contributing to lower inflation, we believe the risk of an overshoot on monetary policy rises. Thus, falling demand could eventually lead to rising unemployment. Recessions are notoriously difficult to forecast. We believe a key reason that recessions are often challenging to predict is that significant economic imbalances elicit non-linear behavior. It is similar to the observation of how a business goes bankrupt: very slowly and then all at once. Unemployment generally behaves similarly in an economic downturn, in that it historically rises very slowly, then very suddenly.

We believe the U.S. economy has been very resilient to these interest rate hikes. Over the span of fourteen months beginning in March of last year, the Federal Reserve raised its benchmark interest rate by 5.0%. This increase is the fastest pace of monetary tightening in four decades. Market rates of interest have climbed higher in response. The “prime” borrowing rate at banks is now 8.25%, up from 3.25% last March. Americans are currently paying approximately 20.1% interest on their credit card balances compared with approximately 14.6% a year ago. The interest rate on new 30-year fixed rate mortgages has more than doubled to over approximately 7.0% from the low that sparked a re-financing boom in 2020-2021.

Monetary policy is generally accepted to act with a “long and variable lag.” Federal Reserve Chair Jerome Powell emphasized this important point in his November 2022 press conference. We believe that one reason for the lag is that many transactions have prices (which affect inflation) and quantities (which affect employment and output) agreed upon well in advance. We believe a key tenet to the recession case is that the U.S. economy should just now be feeling the constrictive effect of higher interest rates, fifteen months removed from the first interest rate hike.

Some policy makers have raised the question whether the U.S. economy is perhaps less interest rate sensitive than it has been in the past. Lorie Logan, Dallas Federal Reserve Bank President, recently remarked, “Some people say a lot of further cooling is in store from lagged consequences of the rate increases the FOMC has already made over the past year and a half. I’m skeptical about the potential for large additional effect from this channel.” Her conclusion was that “The continuing outlook for above-target inflation and a stronger-than-expected labor market calls for more-restrictive monetary policy.” In our view, the greatest economic risk is persistently elevated wage growth which typically brings further monetary tightening.

The Federal Reserve tends to break inflation into three components: goods, services (excluding shelter), and shelter. This decomposition of inflation generally leads to three very different narratives. Goods inflation (excluding food and energy) appears to have evaporated as the pandemic induced consumption binge has faded and supply chains have been repaired, with prices rising only approximately 0.45% year-over-year in May 2023. Services (excluding shelter) fell sharply to approximately 4.2% in April 2023 from approximately 5.2% in June 2022. The most significant driver of services (excluding shelter) in our view is wage growth which remains strong at approximately 4.4%. However, a leading indicator of wage growth, the number of workers that voluntarily “quit” their job, has receded which suggests wage growth should continue to decline.

We believe the Federal Reserve is going to be reluctant to declare victory too early in its battle with inflation. However, following ten consecutive interest rate hikes the Federal Reserve chose to leave its benchmark interest rate unchanged at the June 2023 meeting. We believe the greatest concern for the FOMC is likely the trajectory of wages. We think that if inflation were to stall around the current 4.1% level, it would likely be the result of the very tight labor market continuing to place upward pressure on worker pay. As a result, employment data is generally being viewed with heightened interest by investors. One strong employment reading in early July 2023 sent the yield on the 10-year Treasury back above 4.0% as bond investors appeared to anticipate a resumption of interest rate hikes at the July 2023 FOMC meeting.

The performance of the equity markets during the first half of 2023 was driven primarily by a relatively small number of companies. At the close of the first half of 2023 it would have cost just over $3 trillion to purchase all the outstanding shares of Apple – a new high-water mark for a single publicly traded company. This value of Apple stock surpassed the combined value of three of the S&P 500^® Index’s eleven sectors (Materials, Real Estate, and Utilities). Further, Apple alone represented approximately 7.4% of the S&P 500^® Index at the end of the first half of 2023, while the ten largest companies in the S&P 500^® Index constituted approximately 34.7% of the benchmark on such date (Apple, Microsoft, Alphabet, Amazon.com, NVDIA, Tesla, Berkshire Hathaway, Meta, Visa, and UnitedHealth). The S&P 500^® Index is a “capitalization weighted” index which emphasizes the movements of the market values of its largest constituents. As Apple and its other large technology-related cousins have grown in value, they have exerted outsized influence

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on the performance of the S&P 500^® Index. Seven companies accounted for nearly three quarters of the return in the S&P 500^® Index during the first half of the year, while the remaining 493 companies produced roughly one quarter of the index’s return. The “average” stock in the S&P 500^® Index returned approximately 7.0% during the first half of the year, although almost all the gains occurred during June 2023 as the equal weighted S&P 500^® Index was negative for the year at the end of May 2023.

We believe the handful of technology-related companies that have led the market higher this year have done so for a variety of reasons. First, growth stocks have generally outperformed value stocks when the economy is slowing. In our view this rotation is particularly acute given the dramatic outperformance of value stocks last year. Second, earnings growth for many of these leading companies generally is higher than the broader market. Finally, and most importantly, we observe that Generative Artificial Intelligence (GAI) has recently captured the imagination of investors as measured by the number of periodicals with GAI themed covers, including The Economist and Bloomberg Business Week. We believe much of the excitement is attributable to the introduction of ChatGPT last November by privately held OpenAI, which counts Microsoft as an investor. The launch of ChatGPT introduced “Generative Pre-Trained Transformer” (GPT) technology to a mass audience. The free ChatGPT application reached 100 million unique users in less than two months, seven months faster than it took TikTok to reach the same milestone. We believe the impact of GAI will have an immense impact on many industries and significantly reshape portions of the U.S. economy. Although we continue to evaluate and understand how GAI will impact the investment landscape, some of our initial observations are that GAI seemingly will accelerate the trends of mass individuation, the ways in which consumers interact with companies and consume content will increasingly be personally tailored, GAI will most likely provide a step-function increase in productivity for select industries, the value of authentic experiences, such as travel and live sports, will likely rise, and new businesses will likely emerge that do not exist today anchored around harnessing GAI.

In conclusion, we believe the U.S. economy continues to exhibit signs of moderating in the wake of the pandemic stimulus boom. Our current view is that inflation will continue to methodically retreat, thereby increasing the odds of a soft landing for the U.S. economy. We believe the outstanding policy question continues to be how much more, if any, monetary tightening remains in our future, but to answer this question, the Federal Reserve will likely need to reasonably estimate the impact of actions already taken to tighten monetary policy. We believe success for the Federal Reserve in this regard would be for the current economic expansion to continue with inflation returning to their target of 2.0% and, if this is achieved, this economic cycle could join 1964, 1984, and 1993 as examples of the few times during which the Federal Reserve tightened monetary policy without sparking a recession.

LKCM Small Cap Equity Fund

The LKCM Small Cap Equity Fund returned 13.32% for the six months ended June 30, 2023, as compared to the 8.09% return for the Russell 2000^® Index, the Fund’s benchmark. The Fund’s relative performance benefited from both stock selection and sector allocation decisions during the first half of 2023. In particular, the Fund’s relative performance benefited from strong stock selection decisions in the Healthcare and Financials sectors, which was partially offset by stock selection in the Consumer Discretionary and Information Technology sectors. The Fund also benefited from an underweight position in the Financials sector and an overweight position in the Industrials sector relative to the benchmark, which was partially offset by an overweight position in the Energy sector and an underweight position in the Healthcare sector. The Fund outperformed its benchmark during both the first and second quarters of 2023. Our investment strategy and discipline for the Fund remain anchored with a long-term investment horizon and focus on companies that we believe are high quality with strategic advantages, strong balance sheets and attractive returns on invested capital, which we believe have generally outperformed the benchmark over multiple market cycles. We continue to remain vigilant and believe the Fund remains well-positioned for the anticipated economic and capital market environment.

LKCM Small-Mid Cap Equity Fund

The LKCM Small-Mid Cap Equity Fund returned 13.20% for the six months ended June 30, 2023, as compared to the 8.79% return for the Russell 2500^® Index, the Fund’s benchmark. The Fund’s relative performance benefited from both stock selection and sector allocation decisions during the first half of 2023. The Fund’s relative performance benefited from underweight positions in the Financials and Utilities sectors as well as an overweight position in the Industrials sector. Stock selection decisions also contributed positively to relative returns with strength in the Financials, Healthcare and Real Estate sectors, which was partially offset by stock selection decisions in the Consumer Discretionary sector. We remain committed to our investment strategy that focuses on companies that we believe are high quality and have solid cash flows, balance sheets, and management teams. We continue to remain vigilant and believe the Fund remains well-positioned for the anticipated economic and capital market environment.

LKCM Equity Fund

The LKCM Equity Fund returned 8.26% for the six months ended June 30, 2023, as compared to the 16.89% return for the S&P 500^® Index, the Fund’s benchmark. The Fund’s relative performance benefited from underweight positions in the Financials and Utilities sectors, which was offset by an underweight position in the Communications Services sector as well as an underweight position in the strongly performing Information Technology sector. The Fund’s relative performance benefited from stock selection in the Healthcare sector, which was offset by stock selection decisions in the Information Technology, Financials, and Consumer Discretionary sectors. The Fund continued to produce positive results by investing in a broad number of companies that we believe are high quality and have solid balance sheets and cash flows, even in periods such as the first half of 2023 when the overall market indexes are deriving a large

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portion of their returns from a concentrated number of stocks. We continue to believe this strategy is in the best interest of the Fund’s shareholders and has the Fund well-positioned for the anticipated economic and capital market environment.

LKCM Balanced Fund

The LKCM Balanced Fund returned 5.89% for the six months ended June 30, 2023, as compared to the 16.89% return for the S&P 500^® Index and the 1.50% return for the Bloomberg Intermediate Government/Credit Bond Index. The Fund’s equity portfolio benefited from an underweight position in the Utilities sector relative to the benchmark, as well as solid stock selection in the Healthcare sector relative to the benchmark. Stock selection decisions in the Information Technology and Consumer Discretionary sectors detracted from the Fund’s relative performance during the period, along with the Fund’s underweight position in the strongly performing Information Technology sector. While short-term interest rates continued to move higher during the first half of 2023, the rate of change was slower than last year which led to lower levels of capital market activity. The Fund’s fixed income portfolio, which is comprised of high-quality corporate bonds with short-to-intermediate maturities, had a positive impact on the Fund’s overall performance. The performance of the S&P 500^® Index during this period has largely been led by a small number of growth stocks. The Fund maintains a diversified, disciplined approach to investing and will continue to maintain a balanced portfolio invested in companies that we believe are high quality and have competitive advantages and produce attractive cash flow regardless of their growth or value characteristics. We believe this strategy will continue to produce favorable results for the Fund’s shareholders.

LKCM Fixed Income Fund

The LKCM Fixed Income Fund advanced 1.33% during the six months ended June 30, 2023, as compared to its benchmark, the Bloomberg Intermediate Government/Credit Bond Index, which advanced 1.50% during the period. During this period, short and intermediate Treasury yields rose sharply, and the curve inversion increased substantially, as measured by the yield differential between the 3-month T-bill and the 10-year Treasury. This further inversion of the curve was largely the result of the continued tightening of monetary policy by the Federal Reserve with three successive 25 basis point hikes in the first half of the year, taking the federal funds rate to the range of 5% to 5.25%, as well as the continued reduction of their balance sheet via quantitative tightening. Regional banking turmoil late in the first quarter, largely caused by the effects of the dramatic increase in interest rates over the past year, led the Federal Reserve and Treasury to temporarily add excess liquidity to the financial system to stem broader fallout and address sharply heightened market volatility. In this environment, longer-duration securities outperformed their shorter-duration counterparts and lower-quality issues outperformed higher-quality issues as credit spreads tightened. While the Fund’s overweight in corporate bonds was additive to performance, its shorter duration of approximately 3.2 years relative to the 3.8-year duration of the benchmark detracted from performance as longer duration issues outperformed their shorter duration issues. The Fund largely remains focused in the short-to-intermediate duration sector in an effort to reduce interest rate risk and investment-grade corporate bonds with strong underlying fundamentals, aiming to mitigate credit risk and achieve a sustainable cash flow stream.

LKCM International Equity Fund

The LKCM International Equity Fund returned 14.26% for the six months ended June 30, 2023, as compared to the 12.13% return for the MSCI EAFE^® Index, the Fund’s benchmark. Stock selection decisions in the Industrials and Materials sectors relative to the benchmark were greater than the only two sectors with negative stock selection attribution, the Energy and Healthcare sectors. Additionally, the Fund’s overweight position in the Industrials sector and underweight position in the Real Estate sector benefited the Fund’s attribution from allocation effect relative to the benchmark. This allocation attribution also offset the two sectors with negative allocation effect, the Energy and Utilities sectors. The Fund outperformed the benchmark during the first quarter of 2023 while lagging during the second quarter of 2023. The Fund generally benefited from the rotation into large cap growth companies during the first quarter of 2023.

While we believe the current economic data continues to display an economic resilience in developed markets, this resiliency sustains tight labor markets and cost inflation. Central bankers have implemented monetary policy towards further restriction in an effort to ease inflationary pressures and introduce slack into labor markets, despite drifting slightly into a “technical recession” after two quarters with slight declines in economic output. The recession generally has not been recognized by the authorities in Europe due to “broader set of data, including unemployment.” Early signs of weakness have continued to broaden with European PPI (Purchaser Price Index) and Manufacturing PMI (Purchase Managers’ Index) maintaining downward trends. The European Manufacturing PPI, ex construction, dipped negative in the latest data available from May 2023, while their Manufacturing PMI moved further into contractionary levels. Services PMI rebounded during both the fourth quarter last year and the first quarter this year, supporting the headline composite numbers. Historically, services’ survey decline tends to follow manufacturing activity into any economic slowdown. Additionally, the global economy received a burst of energy from the discontinuation of the Chinese lockdowns. The sustainability of this Chinese rebound has come into question with persistent challenges in their real estate markets and continued high youth unemployment. We believe any tempering of Chinese growth expectations would undermine support as the restrictive nature of rate policy start to bite into credit and capital markets’ activity.

The rate increases from the Bank of England and European Central Bank commenced in the fourth quarter of 2021 and the third quarter of 2022 respectively, and they have each continued to raise policy rates through the first half of 2023. Overall, the rate of increase by many central banks during this cycle has exceeded the magnitude of rate increases over the last three decades. Recall that the general “Rule of Thumb” for rate policy is that each rate action from central bankers takes 12-18 months to fully flow through the monetary

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system, implying that most restrictive action has yet-to-be felt. We believe the trajectory of monetary policy, coupled with a potential for underwhelming Chinese growth, risks casting a shadow over the economic outlook for many developed markets as we move through 2023 and into 2024. Fiscal policy could be an offset to promote further expansion, but extraordinary fiscal action could offset some of the effort by bankers to ease inflationary pressures – particularly, in the labor market. The investment strategy and discipline for the Fund and our firm is to maintain longer-term investment horizons in high quality companies with strategic advantages and strong returns, which we believe have tended to outperform the broader indexes over multiple market cycles. We continue to remain vigilant and believe the Fund remains well-positioned for the anticipated economic and capital market environment.

J. Luther King, Jr., CFA, CIC

July 31, 2023

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 9-23 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. Non-U.S. investments carry potential risks not associated with domestic investments, including currency exchange rate fluctuations, political and financial instability, less liquidity, greater volatility, different regulatory and financial reporting standards, and delays in transaction settlement. 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.

Price-earnings ratio is the ratio of a company’s share price to the company’s earnings per share.

Basis point is a measurement of changes in price or yields for fixed-income securities. One basis point equals .01 percent, or ten cents per $1,000 per annum.

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.

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.

Credit Spreads are the percentage point difference between yields of various classes of fixed income securities, including corporate bonds, compared to U.S. treasury bonds.

European Producer Price Index (PPI) is an unmanaged index which measures the development of transaction prices for the monthly industrial output of economic activities in the European market.

Purchasing Managers’ Index (PMI) is an unmanaged index of the prevailing direction of economic trends in the manufacturing and service sectors. The PMI is based on a monthly survey of supply chain managers across 19 industries, covering both upstream and downstream activity.

Must be preceded or accompanied by a current prospectus.

Investors should consider the investment objective, risks, and charges and expenses of a Fund carefully before investing. Each Fund’s summary prospectus and 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 prospectus should be read carefully before investing in a Fund.

Quasar Distributors, LLC, distributor.

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LKCM Funds Expense Example — June 30, 2023 (Unaudited)

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 (01/01/2023-6/30/2023).

ACTUAL EXPENSES

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

HYPOTHETICAL EXAMPLES FOR COMPARISON PURPOSES

The fifth and sixth columns of the table below 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 transaction costs were included, your costs would have been higher.

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ALLOCATION OF PORTFOLIO HOLDINGS — LKCM Funds — June 30, 2023 (Unaudited)

Percentages represent market value as a percentage of total investments.

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

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

10

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

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

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

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