LKCM Funds NCSR Certified annual shareholder report (management investment company)

As filed with the Securities and Exchange Commission on March 6, 2015

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 811-8352

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, 2014

Item 1. Reports to Stockholders.

LKCM

FUNDS

LKCM Small Cap Equity Fund

LKCM Small-Mid Cap Equity Fund

LKCM Equity Fund

LKCM Balanced Fund

LKCM Fixed Income Fund

Annual Report

December 31, 2014

Dear Fellow Shareholders:

We report the following performance information for the LKCM Funds:


Funds	Inception Date		NAV @ 12/31/14		Net Expense Ratio, *			Gross Expense Ratio**			One Year Total Return Ended 12/31/14			Five Year Average Annualized Return Ended 12/31/14			Ten Year Average Annualized Return Ended 12/31/14			Avg. Annual Total Return Since Incept.
LKCM Equity Fund -
Institutional Class		1/3/96	$	22.81		0.81	%		0.94	%		6.40	%		14.38	%		8.31	%		8.52	%
S&P 500^® Index¹												13.69	%		15.45	%		7.67	%		8.51	%
LKCM Small Cap Equity Fund -
Institutional Class		7/14/94	$	24.05		N/A			0.95	%		-3.11	%		14.82	%		7.72	%		11.06	%
Russell 2000^® Index²												4.89	%		15.55	%		7.77	%		9.54	%
LKCM Small Cap Equity Fund -
Adviser Class		6/5/03	$	23.11		N/A			1.20	%		-3.35	%		14.54	%		7.45	%		10.08	%
Russell 2000^® Index²												4.89	%		15.55	%		7.77	%		10.18	%
LKCM Small-Mid Cap Equity Fund -
Institutional Class		5/2/11	$	12.10		1.01	%		1.19	%		-4.39	%		N/A			N/A			6.03	%
Russell 2500^® Index³												7.07	%		N/A			N/A			11.77	%
LKCM Balanced Fund		12/30/97	$	20.10		0.80	%		1.04	%		5.99	%		10.76	%		7.69	%		6.46	%
S&P 500^® Index¹												13.69	%		15.45	%		7.67	%		6.46	%
Barclays U.S. Intermediate
Government/Credit Bond Index⁴												3.13	%		3.54	%		4.10	%		5.04	%
LKCM Fixed Income Fund		12/30/97	$	10.82		0.65	%		0.72	%		1.72	%		3.43	%		4.24	%		4.77	%
Barclays U.S. Intermediate
Government/Credit Bond Index⁴												3.13	%		3.54	%		4.10	%		5.04	%

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 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. 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’ adviser, has contractually agreed to waive all or a portion of its management fee and/or reimburse the Fund to maintain designated expense ratios through April 30, 2015. 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 reflects fee waivers, if any, in effect. In the absence of such waivers, total return would be reduced. Investment performance is based upon the net expense ratio.

Expense ratios above are as of December 31, 2013, the Funds’ prior fiscal year end, as reported in the Funds’ current prospectus. Expense ratios reported for other periods in the financial highlights of this report for the Funds’ fiscal year ended December 31, 2014 may differ due to the inclusion of acquired fund fees and expenses in the ratios presented above.

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

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

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

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

Note: These indices defined above are not available for direct investment and the index performance therefore does not include expenses.

2014 Review

Investors were faced with several data series in 2014 that shaped the trajectory of the financial markets, including declining bond yields, declining crude oil prices, and global economic growth rates. The year started with weakness domestically due to the unusually cold weather across the United States. Real Gross Domestic Product (GDP) in the United States contracted approximately 2.1% in the first quarter of 2014, the first quarterly contraction in three years. As weather and business activity improved in the second quarter of 2014, economic growth rebounded with real GDP expanding approximately 4.6%, followed by approximately 5.0% and 2.6% growth in the third and fourth quarters of 2014, respectively.

reassuring the marketplace that it will not act prematurely. We believe the phase-out of quantitative easing by the Federal Reserve in October 2014 went much more smoothly than many anticipated, as suggested by the activity in interest rates during the year.

We believe easily the biggest story in the financial markets during the year was the steep decline in crude oil prices. The approximate 46% decline in the price of a barrel of West Texas Intermediate crude oil from $98.42 a barrel at the beginning of the year to $53.27 a barrel at year-end negatively affected the equity values of energy service and production companies. The volatility in crude oil prices is reminiscent of 2008 when oil began the year trading for $96.00 a barrel, briefly reaching $146.30 a barrel, before finishing the year at $44.60 a barrel. The abrupt decline in oil prices in 2008 proved transitory as oil prices recovered to $80.00 a barrel the following year. That collapse appeared to be driven in large part by a demand shock as the market grappled with the ensuing global economic slowdown in 2009. In contrast, we believe the current decline in oil prices is mainly a result of excess global supply, predominantly driven by the success of domestic shale oil production, although slowing economic growth in China and Europe appear to be contributing factors as well. However, we believe the decision by the Organization of Petroleum Exporting Countries (OPEC) on Thanksgiving Day not to curtail production sent oil tumbling $7.54 a barrel the following day with a clear signal that OPEC will not promote a short term solution for propping up crude oil prices.

2015 Outlook

We believe much of the current economic environment is akin to the second half of the 1990s. At that time, as today, the U.S. economy was growing faster than its global counterparts, resulting in divergent central bank monetary policy in which the United States was tightening monetary policy while other Group of Five economies, such as Germany and Japan, were either sustaining or tightening monetary policy. As a result, the dollar appreciated in the late 1990s and contributed in part to the decline in crude oil prices in 1997-1998. In addition, Japan entered a deflationary spiral in the late 1990s from which it is still attempting to escape, as deflationary forces in Japan resulted in excess Japanese savings spilling into the global financial system, dragging down bond yields in other developed economies, including the United States where yields on the 10-Year Treasury Bond fell from 7.85% in early 1995 to a low of 4.28% in 1998. At that time, the Federal Reserve had to reverse course and become more dovish in response to financial contagion in the rest of the world, which began with the Asian currency crisis in July 1997, despite strong United States economic output. Today we believe we have a similar situation with the collapse in commodity prices exerting pressure on emerging market economies, which in our view are attempting to unwind excesses created from a cyclical boom in commodity prices. In addition to emerging market economies risk, we believe there are deflationary fears in Europe, the result of which could well be a continued flight to quality in U.S. bonds and further flattening of the yield curve similar to the late 1990s.

We believe low European bond yields in conjunction with the high likelihood of European Central Bank (ECB) quantitative easing have exerted downward pressure on U.S. Treasury bond yields by creating demand for U.S. debt securities due to their relative attractiveness. The strength of the U.S. dollar relative to the Euro appears to only exacerbate this pressure. If oil stays near current levels, we believe it will keep a lid on headline inflation around the world and further frustrate the ECB and Bank of Japan which are battling deflationary fears. If the Federal Reserve were to tighten monetary policy by raising the federal funds rate, we believe the U.S. dollar would likely rise, reinforcing downward pressure on oil and U.S. Treasury bond yields.

There have been two major rallies in the U.S. dollar since the mid-1970s, both lasting roughly seven years. The dollar appreciated approximately 52% in the early 1980s and approximately 34% in the late 1990s. The U.S. dollar has risen approximately 13% from its lows during 2014, and we believe the divergence in global growth and prospective monetary policy are likely to further boost the value of the U.S. dollar. We believe this will present a risk that the U.S. dollar overshoots and undercuts the profit expectations for U.S.-based multinational companies. We also believe the Eurozone is flirting with deflation and structural challenges in fiscal policy within the European Union also appear to remain unaddressed. These fiscal and monetary challenges further support our view that the U.S. dollar appears to be in a period of cyclical strength relative to other major currencies.

If indeed the recent drop in crude oil prices is more supply-driven than demand-drive, the logical conclusion would seemingly be that the path of future crude oil prices may more closely resemble current levels than a $100 a barrel level. Saudi Arabia has long played the role of the “swing producer” within OPEC to crimp supply and buoy the price of crude oil. Thus, when Saudi Arabia has historically been faced with the choice of defending the price of crude oil or defending its market share, it has historically chosen to defend the price of crude oil and risk forfeiting its market share. Although OPEC retains the right to shift its strategy at any point, we do believe that market clearing forces will eventually work and lower crude oil prices will beget a reduction in unprofitable production and discourage capital investment in energy companies and projects. The dramatic decline in oil prices effectively behaves economically like a “tax cut” for the consumer, and we estimate that each penny decline in gas prices translates into approximately $1 billion of annual incremental spending power for consumers.

We believe many of the drivers of the U.S. equity market returns in 2014 are likely to remain in place for 2015, including higher GDP growth compared to 2014, low inflation, and a stable-to-improving job market. We estimate corporate earnings per share for the S&P 500 Index^® were $117 in 2014 and further estimate they may grow 7-8% in 2015. In our view, the four key tenets of earnings multiples – taxes, regulation, interest rates, and inflation – remain favorable. We remain constructive on the U.S. equity markets for 2015, but would not be surprised to see greater market volatility than 2012-2014 as financial markets wrestle with slowing global economic growth, conflicting central bank monetary policy, and volatile commodity prices.

LKCM Equity Fund

The LKCM Equity Fund returned 6.40% for the year ended December 31, 2014 as compared to the 13.69% return for the Fund’s benchmark, the S&P 500^® Index. The Fund benefited from stock selection in the Consumer Staples and Consumer Discretionary sectors, which was more than offset by stock selection in the Industrials, Information Technology and Financial sectors relative to the benchmark. The Fund’s underweight position in the Utilities sector also detracted from the Fund’s relative performance as companies in this sector benefited from investors seeking yield in response to lower bond yields. We remain committed to our investment strategy and stock selection process for the Fund and believe we have the Fund well-positioned for the opportunities and challenges we expect the financial markets will present during the upcoming year.

LKCM Small Cap Equity Fund

The LKCM Small Cap Equity Fund – Institutional Class declined 3.11% for the year ended December 31, 2014 as compared to the 4.89% return for the Fund’s benchmark, the Russell 2000^® Index. During the year, both stock selection and sector allocation decisions detracted from the Fund’s performance relative to the benchmark. Positive stock selection in the Energy sector was more than offset by weakness in stock selection in the Technology, Industrials, Financials and Consumer Discretionary sectors relative to the benchmark. Sector allocation decisions also detracted from the Fund’s relative performance with the Fund’s underweight position in the Utilities sector and overweight position in the Energy sector accounting for much of the shortfall. Our investment strategy for the Fund focuses on investments in what we view as higher quality companies and it had difficulty overcoming two powerful forces – “reach for yield” and focus on lower quality companies – that we believe continued to drive the markets during the year. We remain committed to our investment strategy and stock selection process for the Fund and believe we have the Fund well-positioned for the opportunities and challenges we expect the financial markets will present during the upcoming year.

LKCM Small-Mid Cap Equity Fund

The LKCM Small-Mid Cap Equity Fund declined 4.39% for the year ended December 31, 2014 as compared to the 7.07% return for the Fund’s benchmark, the Russell 2500^® Index. During the year, both stock selection and sector allocation decisions detracted from the Fund’s performance relative to the benchmark. Positive stock selection in the Energy sector was more than offset by weakness in stock selection in the Technology, Consumer Discretionary and Financials sectors relative to the benchmark. Sector allocation decisions also detracted from the Fund’s relative performance with the Fund’s underweight position in the Utilities sector and overweight position in the Energy sector accounting for much of the shortfall. Our investment strategy for the Fund focuses on investments in what we view as higher quality companies and it had difficulty overcoming two powerful forces – “reach for yield” and focus on lower quality companies – that we believe continued to drive the markets during the year. We remain committed to our investment strategy and stock selection process for the Fund and believe we have the Fund well-positioned for the opportunities and challenges we expect the financial markets will present during the upcoming year.

LKCM Fixed Income Fund

The LKCM Fixed Income Fund advanced 1.72% for the year ended December 31, 2014 as compared to the 3.13% return for the Fund’s benchmark, the Barclays Intermediate Government/Credit Bond Index. The Fund’s defensive duration posture during the year, which benefited the Fund’s relative performance during the prior two years, was the primary reason for the Fund’s relative underperformance, as interest rates rose in the short-to-intermediate part of the yield curve and declined significantly on the long-end of the yield curve. After steepening dramatically during 2013 as a result of the Federal Reserve’s communiques regarding the winding down of quantitative easing, the yield curve flattened throughout 2014 as quantitative easing was withdrawn and global growth slowed. The Fund’s overweight position in investment grade corporate bonds, and more specifically the BBB-rated sector, benefited the Fund’s relative performance, as BBB-rated corporate bonds generally outperformed the higher-rated sectors, including U.S. bonds. During a year when interest rates declined sharply on longer-dated fixed income securities, the Fund’s 2.9 year duration, versus the 3.8 year duration for the benchmark, while reducing the Fund’s volatility, ultimately detracted from the Fund’s relative performance as longer duration fixed income securities outperformed their shorter duration counterparts.

LKCM Balanced Fund

The LKCM Balanced Fund advanced 5.99% for the year ended December 31, 2014 as compared to the 13.69% return for the S&P 500 Index^® and the 3.13% return for the Barclays Intermediate Government/Credit Bond Index. Both the equity as well as the fixed income sectors of the Fund’s portfolio generated positive absolute returns during the year. The equity sector of the Fund’s portfolio was led by stock selection in the Consumer Staples and Consumer Discretionary sectors, while stock selection in the Technology, Financials and Energy sectors detracted from the Fund’s performance relative to the benchmark. The fixed income sector of the Fund’s portfolio remains focused on short-to-intermediate investment grade corporate bonds in an effort to manage risk during this historically low interest rate

environment. We believe the Fund is well-positioned to meet the challenges and opportunities we expect the financial markets will present during the upcoming year.

LOGO

J. Luther King, Jr., CFA, CIC

January 27, 2015

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 15-27 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. Small and medium capitalization funds typically carry additional risks, since smaller companies generally have a higher risk of failure, and, historically, their stocks have experienced a greater degree of market volatility than stocks on average. Investments in debt securities typically decrease in value when interest rates rise. This risk is greater for longer-term debt securities. Investments in mortgage backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. These risks are discussed in the Funds’ summary and statutory prospectuses.

Earnings per share (EPS) is calculated by taking the total earnings divided by the number of shares outstanding.

Duration is a commonly used measure of the potential volatility of the price of a debt security, or the aggregate market value of a portfolio of debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration.

BBB refers to bond ratings. Bond ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as Standard & Poor’s, Moody’s and Fitch. These firms evaluate 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.

Stocks and bonds are not guaranteed. Bonds traditionally experience less volatility than stocks but have less growth potential. High yield bonds are subject to certain risks including market, greater price volatility, credit, liquidity, issuer, interest-rate, and inflation. Lower-rated and non-rated securities involve greater risk than higher rated securities. Stocks, investment grade bonds and high yield bonds as well as other asset classes have different risk profiles which should be considered when investing. High yield securities have greater price volatility and credit and liquidity risks (presenting a greater risk of loss to principal and interest) than other higher-rated, investment grade securities.

Must be preceded or accompanied by a prospectus.

Quasar Distributors, LLC, distributor.

PERFORMANCE:

The following information illustrates the historical performance of LKCM Small Cap Equity Fund as of December 31, 2014 compared to the Fund’s representative benchmark and peer group indices.

Performance data quoted represents past performance; past performance does not guarantee future results. The graph and table 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.

An index is an unmanaged portfolio and does not trade or incur any expenses. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2014)


	Past 1 Year		Past 5 Years⁽¹⁾		Past 10 Years⁽¹⁾		Since Inception⁽¹⁾⁽²⁾
LKCM Small Cap Equity Fund – Institutional Class		-3.11%		14.82%		7.72%		11.06%
Russell 2000^® Index		4.89%		15.55%		7.77%		9.54%
Lipper Small-Cap Core Funds Index		4.09%		14.71%		7.93%		10.45%

⁽¹⁾	Annualized.

⁽²⁾	July 14, 1994

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

(for the ten years ended December 31, 2014)

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 index of small cap core mutual funds tracked by Lipper, Inc.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2014)


	Past 1 Year		Past 5 Years⁽¹⁾		Past 10 Years⁽¹⁾		Since Inception⁽¹⁾⁽²⁾
LKCM Small Cap Equity Fund – Adviser Class		-3.35%		14.54%		7.45%		10.08%
Russell 2000^® Index		4.89%		15.55%		7.77%		10.18%
Lipper Small-Cap Core Funds Index		4.09%		14.71%		7.93%		10.58%

⁽¹⁾	Annualized.

⁽²⁾	June 5, 2003

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

(for the ten years ended December 31, 2014)

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 index of small cap core mutual funds tracked by Lipper, Inc.

PERFORMANCE:

The following information illustrates the historical performance of LKCM Small-Mid Cap Equity Fund as of December 31, 2014 compared to the Fund’s benchmark and peer group indices.

An index is an unmanaged portfolio and does not trade or incur any expenses. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2014)


	Past 1 Year		Past 3 Years		Since Inception⁽¹⁾⁽²⁾
LKCM Small-Mid Cap Equity Fund – Institutional Class		-4.39%		11.86%		6.03%
Russell 2500^® Index		7.07%		19.97%		11.77%
Lipper Small-Cap Core Funds Index		4.09%		17.99%		10.29%

⁽¹⁾	Annualized.

⁽²⁾	May 2, 2011

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

(for the period from May 2, 2011 to December 31, 2014)

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 index of small cap core mutual funds tracked by Lipper, Inc.

PERFORMANCE:

The following information illustrates the historical performance of LKCM Equity Fund as of December 31, 2014 compared to the Fund’s benchmark and peer group indices.

An index is an unmanaged portfolio and does not trade or incur any expenses. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2014)


	Past 1 Year		Past 5 Years⁽¹⁾		Past 10 Years⁽¹⁾		Since Inception⁽¹⁾⁽²⁾
LKCM Equity Fund – Institutional Class		6.40%		14.38%		8.31%		8.52%
S&P 500^® Index		13.69%		15.45%		7.67%		8.51%
Lipper Large-Cap Core Funds Index		11.33%		13.82%		7.01%		7.53%

⁽¹⁾	Annualized.

⁽²⁾	January 3, 1996

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM EQUITY FUND – INSTITUTIONAL CLASS

(for the ten years ended December 31, 2014)

LOGO

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

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

PERFORMANCE:

The following information illustrates the historical performance of LKCM Balanced Fund as of December 31, 2014 compared to the Fund’s benchmark and peer group indices.

An index is an unmanaged portfolio and does not trade or incur any expenses. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2014)


	Past 1 Year		Past 5 Years⁽¹⁾		Past 10 Years⁽¹⁾		Since Inception⁽¹⁾⁽²⁾
LKCM Balanced Fund		5.99%		10.76%		7.69%		6.46%
Barclays U.S. Intermediate Government/Credit Bond Index		3.13%		3.54%		4.10%		5.04%
S&P 500^® Index		13.69%		15.45%		7.67%		6.46%
Lipper Mixed-Asset Target Allocation Growth Funds Index		7.04%		10.39%		6.49%		6.23%

⁽¹⁾	Annualized.

⁽²⁾	December 30, 1997

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM BALANCED FUND

(for the ten years ended December 31, 2014)

LOGO

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

The Lipper Mixed-Asset Target Allocation Growth Funds Index is an unmanaged index consisting of 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.

PERFORMANCE:

The following information illustrates the historical performance of LKCM Fixed Income Fund as of December 31, 2014 compared to the Fund’s benchmark and peer group indices.

An index is an unmanaged portfolio and does not trade or incur any expenses. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2014)


	Past 1 Year		Past 5 Years⁽¹⁾		Past 10 Years⁽¹⁾		Since Inception⁽¹⁾⁽²⁾
LKCM Fixed Income Fund		1.72%		3.43%		4.24%		4.77%
Barclays U.S. Intermediate Government/Credit Bond Index		3.13%		3.54%		4.10%		5.04%
Lipper Short Intermediate Investment-Grade Debt Funds Index		2.14%		3.35%		3.62%		4.42%

⁽¹⁾	Annualized.

⁽²⁾	December 30, 1997

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

(for the ten years ended December 31, 2014)

LOGO

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

LKCM Funds Expense Example — December 31, 2014

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 (7/1/14-12/31/14).

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. 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, 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 and Fixed Income 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. You may use the information in this line, 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 first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLES FOR COMPARISON PURPOSES

The second line of the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is 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.


	LKCM Small Cap Equity Fund – Institutional Class
	Beginning Account Value 7/1/2014		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 –12/31/14
Actual	$	1,000.00	$	976.10	$	4.73
Hypothetical (5% return before expense)	$	1,000.00	$	1,020.47	$	4.84

*	Expenses are equal to the Fund’s annualized net expense ratio of 0.95%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.


	LKCM Small Cap Equity Fund – Adviser Class
	Beginning Account Value 7/1/2014		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 –12/31/14
Actual	$	1,000.00	$	975.00	$	5.97
Hypothetical (5% return before expense)	$	1,000.00	$	1,019.16	$	6.11

*	Expenses are equal to the Fund’s annualized net expense ratio of 1.20%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.


	LKCM Small-Mid Cap Equity Fund
	Beginning Account Value 7/1/2014		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 –12/31/14
Actual	$	1,000.00	$	954.60	$	4.93
Hypothetical (5% return before expense)	$	1,000.00	$	1,020.16	$	5.09

*	Expenses are equal to the Fund’s annualized net expense ratio of 1.00%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.


	LKCM Equity Fund
	Beginning Account Value 7/1/2014		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 –12/31/14
Actual	$	1,000.00	$	1,011.20	$	4.06
Hypothetical (5% return before expense)	$	1,000.00	$	1,021.17	$	4.08

*	Expenses are equal to the Fund’s annualized net expense ratio of 0.80%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.


	LKCM Balanced Fund
	Beginning Account Value 7/1/2014		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 –12/31/14
Actual	$	1,000.00	$	1,013.30	$	4.06
Hypothetical (5% return before expense)	$	1,000.00	$	1,021.17	$	4.08

*	Expenses are equal to the Fund’s annualized net expense ratio of 0.80%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.


	LKCM Fixed Income Fund
	Beginning Account Value 7/1/2014		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 –12/31/14
Actual	$	1,000.00	$	998.60	$	3.27
Hypothetical (5% return before expense)	$	1,000.00	$	1,021.93	$	3.31

*	Expenses are equal to the Fund’s annualized net expense ratio of 0.65%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.

ALLOCATION OF PORTFOLIO HOLDINGS — LKCM Funds — December 31, 2014

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 SMALL CAP EQUITY FUND

SCHEDULEOF INVESTMENTS

December 31, 2014


COMMON STOCKS - 101.7%	Shares		Value
Aerospace & Defense - 3.3%
Hexcel Corporation (a)		323,380	$	13,417,036
Teledyne Technologies Incorporated (a)		146,235		15,024,184

				28,441,220

Automobiles - 1.9%
Lithia Motors, Inc. - Class A		174,805		15,153,846
Winnebago Industries, Inc.		71,416		1,554,012

				16,707,858

Banks - 6.2%
BancorpSouth, Inc.		628,474		14,146,950
Columbia Banking System, Inc.		418,240		11,547,606
Hanmi Financial Corporation		432,595		9,434,897
Prosperity Bancshares, Inc.		81,645		4,519,867
Texas Capital Bancshares, Inc. (a)		239,640		13,019,641

				52,668,961

Biotechnology - 5.0%
Charles River Laboratories International, Inc. (a)		213,635		13,595,732
EXACT Sciences Corporation (a)		751,460		20,620,062
Fluidigm Corporation (a)		249,336		8,410,103

				42,625,897

Building Products - 0.9%
PGT, Inc. (a)		805,166		7,753,749

Chemicals - 2.3%
Globe Specialty Metals Inc.		423,530		7,297,422
PolyOne Corporation		336,680		12,763,539

				20,060,961

Commercial Services & Supplies - 4.5%
Healthcare Services Group, Inc.		466,690		14,434,721
Hillenbrand, Inc.		431,570		14,889,165
MSA Safety Incorporated		165,865		8,805,773

				38,129,659

Communications Equipment - 4.3%
Ciena Corporation (a)		592,745		11,505,181
Infinera Corporation (a)		986,195		14,516,790
Sonus Networks, Inc. (a)		2,620,460		10,403,226

				36,425,197

Construction & Engineering - 0.6%
Primoris Services Corporation		206,375		4,796,155

Construction Materials - 1.3%
Headwaters Incorporated (a)		722,755		10,834,097

Consumer Finance - 1.2%
PRA Group Inc (a)		174,535		10,110,813

Diversified Consumer Services - 1.3%
DeVry Education Group Inc.		240,335		11,408,702

Diversified Financials - 2.1%
HFF, Inc. - Class A		348,998		12,536,008
MarketAxess Holdings Inc.		71,525		5,129,058

				17,665,066


COMMON STOCKS	Shares		Value
Diversified Telecommunication Services - 0.5%
Ruckus Wireless, Inc. (a)		371,420	$	4,464,468

Electrical Equipment & Instruments - 1.2%
Franklin Electric Co., Inc.		284,275		10,668,841

Electronic Equipment & Instruments - 1.8%
Belden Inc.		137,510		10,837,163
Coherent, Inc. (a)		80,820		4,907,390

				15,744,553

Food Products - 2.7%
Post Holdings Inc. (a)		263,550		11,040,109
TreeHouse Foods, Inc. (a)		138,335		11,831,793

				22,871,902

Health Care Equipment & Supplies - 7.8%
Cynosure, Inc. - Class A (a)		162,603		4,458,574
DexCom Inc. (a)		318,490		17,532,874
Endologix, Inc. (a)		583,188		8,916,945
MWI Veterinary Supply, Inc. (a)		91,420		15,533,172
The Spectranetics Corporation (a)		578,293		19,997,372

				66,438,937

Health Care Providers & Services - 4.1%
Acadia Healthcare Company, Inc. (a)		253,683		15,527,937
Team Health Holdings, Inc. (a)		334,540		19,246,086

				34,774,023

Hotels, Restaurants & Leisure - 3.8%
Belmond Ltd. - Class A (a) (b)		405,032		5,010,246
Brinker International, Inc.		240,825		14,134,019
La Quinta Holdings Inc (a)		619,355		13,662,971

				32,807,236

Industrial Conglomerates - 0.7%
Raven Industries, Inc.		232,275		5,806,875

Internet & Catalog Retail - 0.9%
HSN, Inc.		97,845		7,436,220

Internet Software & Services - 4.1%
Euronet Worldwide, Inc. (a)		281,180		15,436,782
LogMeIn, Inc. (a)		207,500		10,238,050
SPS Commerce, Inc. (a)		165,055		9,347,065

				35,021,897

IT Consulting & Services - 1.3%
Acxiom Corporation (a)		532,060		10,784,856

Leisure Equipment & Products - 1.2%
Pool Corporation		167,875		10,649,990

Machinery - 3.9%
Barnes Group Inc.		379,070		14,029,381
CLARCOR Inc.		181,090		12,067,838
The Manitowoc Company, Inc.		344,725		7,618,422

				33,715,641

Media - 1.9%
The E.W. Scripps Company - Class A (a)		711,550		15,903,143

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

LKCM SMALL CAP EQUITY FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


COMMON STOCKS	Shares		Value
Metals & Mining - 1.2%
Carpenter Technology Corporation		66,340	$	3,267,245
Commercial Metals Company		198,345		3,231,040
Worthington Industries, Inc.		127,285		3,830,006

				10,328,291

Oil & Gas & Consumable Fuels - 3.9%
Diamondback Energy Inc. (a)		133,935		8,006,634
Matador Resources Company (a)		376,991		7,626,528
Memorial Resource Development Corp. (a)		396,020		7,140,241
Synergy Resources Corporation (a)		875,670		10,980,902

				33,754,305

Pharmaceuticals - 2.5%
Akorn, Inc. (a)		592,633		21,453,315

Real Estate Investment Trusts - 7.0%
Kennedy-Wilson Holdings, Inc.		517,062		13,081,669
Pebblebrook Hotel Trust		256,090		11,685,387
Sovran Self Storage, Inc.		145,195		12,663,908
Stag Industrial, Inc.		475,245		11,643,503
Strategic Hotels & Resorts, Inc. (a)		824,810		10,912,236

				59,986,703

Road & Rail - 1.3%
Landstar System, Inc.		151,640		10,998,449

Semiconductor Equipment & Products - 1.4%
Rambus Inc. (a)		1,058,655		11,740,484

Software - 6.4%
ACI Worldwide, Inc. (a)		644,335		12,996,237
Fortinet Inc. (a)		519,700		15,934,002
Interactive Intelligence Group, Inc. (a)		138,720		6,644,688
Manhattan Associates, Inc. (a)		152,080		6,192,698
Take-Two Interactive Software, Inc. (a)		477,375		13,380,821

				55,148,446

Specialty Retail - 0.1%
Pier 1 Imports, Inc.		36,380		560,252

Textiles, Apparel & Luxury Goods - 4.7%
Deckers Outdoor Corporation (a)		148,435		13,513,522
Kate Spade & Company (a)		247,700		7,928,877
Oxford Industries, Inc.		200,840		11,088,376
Skechers U.S.A., Inc. - Class A (a)		136,270		7,528,918

				40,059,693

Thrifts & Mortgage Finance - 1.5%
Home Bancshares Inc.		400,338		12,874,870

Trading Companies & Distributors - 0.9%
Aceto Corporation		365,755		7,936,883

TOTAL COMMON STOCKS
(Cost $656,997,887)				869,558,608


SHORT-TERM INVESTMENT - 0.0%	Shares		Value
Money Market Fund (c) - 0.0%
Federated Government Obligations Fund -Institutional Shares, 0.01%		444,984	$	444,984

TOTAL SHORT-TERM INVESTMENT
(Cost $444,984)				444,984

Total Investments - 101.7%
(Cost $657,442,871)				870,003,592
Liabilities in Excess of Other Assets - (1.7)%				(14,707,660	)

TOTAL NET ASSETS - 100.0%			$	855,295,932

ADR American Depository Receipt.

(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.

The Global Industry Classification Standard (GICS^®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor 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.

LKCM SMALL-MID CAP EQUITY FUND

SCHEDULEOF INVESTMENTS

December 31, 2014


COMMON STOCKS - 92.9%	Shares		Value
Aerospace & Defense - 6.0%
B/E Aerospace, Inc. (a)		87,860	$	5,097,637
Hexcel Corporation (a)		150,795		6,256,485
KLX Inc (a)		43,930		1,812,113
Teledyne Technologies Incorporated (a)		99,200		10,191,808

				23,358,043

Automobiles - 1.1%
Lithia Motors, Inc. - Class A		49,770		4,314,561

Banks - 4.7%
BancorpSouth, Inc.		187,155		4,212,859
Comerica Incorporated		85,440		4,002,010
Texas Capital Bancshares, Inc. (a)		112,955		6,136,845
Zions Bancorporation		135,565		3,864,958

				18,216,672

Biotechnology - 1.9%
EXACT Sciences Corporation (a)		276,440		7,585,514

Capital Markets - 6.6%
Affiliated Managers Group, Inc. (a)		40,020		8,493,845
E*Trade Financial Corporation (a)		383,440		9,300,337
Raymond James Financial, Inc.		143,050		8,195,335

				25,989,517

Chemicals - 1.6%
PolyOne Corporation		166,115		6,297,419

Commercial Services & Supplies - 3.9%
Healthcare Services Group, Inc.		201,410		6,229,611
Hillenbrand, Inc.		260,060		8,972,070

				15,201,681

Communications Equipment - 3.7%
Ciena Corporation (a)		292,580		5,678,978
F5 Networks, Inc. (a)		67,155		8,761,377

				14,440,355

Construction Materials - 0.5%
Martin Marietta Materials, Inc.		18,315		2,020,511

Consumer Finance - 1.8%
PRA Group Inc (a)		124,085		7,188,244

Diversified Financials - 2.5%
Jones Lang LaSalle Incorporated		65,670		9,845,903

Electrical Equipment & Instruments - 2.4%
Acuity Brands, Inc.		66,015		9,246,721

Electronic Equipment & Instruments - 3.4%
Belden Inc.		107,740		8,490,989
Trimble Navigation Limited (a)		180,450		4,789,143

				13,280,132

Food Products - 2.1%
The WhiteWave Foods Company (a)		234,475		8,204,280

Health Care Equipment & Supplies - 8.6%
Align Technology, Inc. (a)		144,175		8,060,824
DexCom Inc. (a)		154,015		8,478,526


COMMON STOCKS	Shares		Value
Health Care Equipment & Supplies - 8.6%, Continued
MWI Veterinary Supply, Inc. (a)		55,830	$	9,486,075
PerkinElmer, Inc.		172,630		7,549,110

				33,574,535

Health Care Providers & Services - 5.1%
Acadia Healthcare Company, Inc. (a)		155,620		9,525,500
Team Health Holdings, Inc. (a)		179,080		10,302,473

				19,827,973

Hotels, Restaurants & Leisure - 2.2%
La Quinta Holdings Inc (a)		389,965		8,602,628

Internet Software & Services - 2.2%
Euronet Worldwide, Inc. (a)		157,975		8,672,828

Leisure Equipment & Products - 3.9%
Polaris Industries Inc.		58,755		8,886,106
Pool Corporation		99,850		6,334,484

				15,220,590

Machinery - 2.4%
The Middleby Corporation (a)		96,820		9,594,862

Marine - 1.7%
Kirby Corporation (a)		82,185		6,635,617

Media - 2.3%
Gannett Co., Inc.		280,600		8,959,558

Metals & Mining - 1.1%
Allegheny Technologies Incorporated		122,145		4,246,982

Oil & Gas & Consumable Fuels - 1.4%
Diamondback Energy Inc. (a)		61,910		3,700,980
Memorial Resource Development Corp. (a)		106,770		1,925,063

				5,626,043

Pharmaceuticals - 3.8%
Akorn, Inc. (a)		408,625		14,792,225

Real Estate Investment Trusts - 2.0%
Sovran Self Storage, Inc.		92,060		8,029,473

Semiconductor Equipment & Products - 1.9%
Rambus Inc. (a)		677,135		7,509,427

Software - 6.3%
ACI Worldwide, Inc. (a)		433,435		8,742,384
Fortinet Inc. (a)		292,135		8,956,859
Take-Two Interactive Software, Inc. (a)		251,740		7,056,272

				24,755,515

Specialty Retail - 2.7%
Tractor Supply Company		69,800		5,501,636
Ulta Salon, Cosmetics & Fragrance, Inc. (a)		39,495		5,049,041

				10,550,677

Textiles, Apparel & Luxury Goods - 3.1%
Deckers Outdoor Corporation (a)		98,785		8,993,386

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

LKCM SMALL-MID CAP EQUITY FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


COMMON STOCKS	Shares		Value
Textiles, Apparel & Luxury Goods - 3.1%, Continued
Kate Spade & Company (a)		99,780	$	3,193,958

				12,187,344

TOTAL COMMON STOCKS
(Cost $291,180,932)				363,975,830


SHORT-TERM INVESTMENTS - 7.1%
Money Market Funds (b) - 7.1%
Dreyfus Government Cash Management Fund - Institutional Shares, 0.01%		10,589,039		10,589,039
Federated Government Obligations Fund - Institutional Shares, 0.01%		11,168,857		11,168,857
Invesco Short Term Investments Trust -Treasury Portfolio -Institutional Shares, 0.01%		5,784,072		5,784,072

TOTAL SHORT-TERM INVESTMENTS
(Cost $27,541,968)				27,541,968

Total Investments - 100.0%
(Cost $318,722,900)				391,517,798
Other Assets in Excess of Liabilities - 0.0%				150,003

TOTAL NET ASSETS - 100.0%			$	391,667,801

(a)	Non-income producing security.

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

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

LKCM EQUITY FUND

SCHEDULEOF INVESTMENTS

December 31, 2014


COMMON STOCKS - 98.5%	Shares		Value
Aerospace & Defense - 2.8%
Honeywell International Inc.		60,000	$	5,995,200
Rockwell Collins, Inc.		40,000		3,379,200

				9,374,400

Auto Components - 1.4%
Gentex Corporation		125,000		4,516,250

Banks - 9.7%
Bank of America Corporation		276,663		4,949,501
Comerica Incorporated		120,000		5,620,800
Cullen/Frost Bankers, Inc.		50,850		3,592,044
Glacier Bancorp, Inc.		60,000		1,666,200
Prosperity Bancshares, Inc.		40,000		2,214,400
SunTrust Banks, Inc.		109,604		4,592,407
Wells Fargo & Company		120,000		6,578,400
Zions Bancorporation		110,000		3,136,100

				32,349,852

Beverages - 2.4%
The Coca-Cola Company		65,000		2,744,300
PepsiCo, Inc.		55,000		5,200,800

				7,945,100

Biotechnology - 3.6%
Amgen Inc.		40,000		6,371,600
Celgene Corporation (a)		50,000		5,593,000

				11,964,600

Chemicals - 5.2%
E. I. du Pont de Nemours and Company		90,000		6,654,600
FMC Corporation		80,000		4,562,400
Monsanto Company		50,000		5,973,500

				17,190,500

Commercial Services & Supplies - 2.0%
Copart, Inc. (a)		100,000		3,649,000
Waste Connections, Inc.		65,000		2,859,350

				6,508,350

Communications Equipment - 0.7%
QUALCOMM Incorporated		33,000		2,452,890

Computers & Peripherals - 5.4%
Apple Inc.		98,000		10,817,240
EMC Corporation		83,000		2,468,420
International Business Machines Corporation		30,000		4,813,200

				18,098,860

Construction Materials - 1.7%
Martin Marietta Materials, Inc.		50,000		5,516,000

Containers & Packaging - 1.5%
Ball Corporation		75,000		5,112,750

Diversified Financials - 0.7%
JPMorgan Chase & Co.		40,000		2,503,200

Diversified Telecommunication Services - 1.0%
Verizon Communications, Inc.		70,000		3,274,600


COMMON STOCKS	Shares		Value
Electrical Equipment & Instruments - 2.0%
Franklin Electric Co., Inc.		85,000	$	3,190,050
Roper Industries, Inc.		23,000		3,596,050

				6,786,100

Electronic Equipment & Instruments - 1.7%
National Instruments Corporation		55,000		1,709,950
Trimble Navigation Limited (a)		155,000		4,113,700

				5,823,650

Energy Equipment & Services - 0.6%
Schlumberger Limited (b)		24,500		2,092,545

Food & Drug Retailing - 1.1%
Walgreen Boots Alliance, Inc.		50,000		3,810,000

Food Products - 1.0%
The WhiteWave Foods Company (a)		90,000		3,149,100

Health Care Equipment & Supplies - 3.3%
Halyard Health, Inc. (a)		5,625		255,769
PerkinElmer, Inc.		100,000		4,373,000
Thermo Fisher Scientific Inc.		50,000		6,264,500

				10,893,269

Household Durables - 2.0%
Jarden Corporation (a)		142,500		6,822,900

Household Products - 2.9%
Kimberly-Clark Corporation		45,000		5,199,300
The Procter & Gamble Company		50,000		4,554,500

				9,753,800

Industrial Conglomerates - 0.4%
Raven Industries, Inc.		52,500		1,312,500

Insurance - 1.8%
Prudential Financial, Inc.		65,000		5,879,900

Internet Catalog & Retail - 0.9%
Amazon.com, Inc. (a)		9,500		2,948,325

Internet Software & Services - 3.8%
Akamai Technologies, Inc. (a)		90,000		5,666,400
eBay Inc. (a)		65,000		3,647,800
Sabre Corporation		160,000		3,243,200

				12,557,400

Machinery - 7.9%
Danaher Corporation		75,000		6,428,250
Dover Corporation		50,000		3,586,000
Generac Holdings Inc. (a)		92,000		4,301,920
The Gorman-Rupp Company		67,500		2,168,100
Pall Corporation		55,000		5,566,550
Valmont Industries, Inc.		35,000		4,445,000

				26,495,820

Marine - 1.1%
Kirby Corporation (a)		45,000		3,633,300

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

LKCM EQUITY FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


COMMON STOCKS	Shares		Value
Media - 3.1%
Time Warner Cable Inc.		23,000	$	3,497,380
Time Warner Inc.		34,000		2,904,280
The Walt Disney Company		43,385		4,086,433

				10,488,093

Metals & Mining - 0.7%
Carpenter Technology Corporation		47,000		2,314,750

Oil & Gas & Consumable Fuels - 7.0%
Cabot Oil & Gas Corporation		120,000		3,553,200
ConocoPhillips		50,000		3,453,000
EOG Resources, Inc.		60,000		5,524,200
Exxon Mobil Corporation		55,000		5,084,750
Memorial Resource Development Corp. (a)		86,130		1,552,924
Noble Energy, Inc.		35,000		1,660,050
Range Resources Corporation		48,000		2,565,600

				23,393,724

Paper & Forest Products - 0.8%
International Paper Company		50,000		2,679,000

Pharmaceuticals - 6.5%
Abbott Laboratories		90,000		4,051,800
AbbVie Inc.		82,150		5,375,896
Johnson & Johnson		38,000		3,973,660
Merck & Co., Inc.		80,000		4,543,200
Pfizer Inc.		115,000		3,582,250

				21,526,806

Road & Rail - 3.5%
Kansas City Southern		28,000		3,416,840
Union Pacific Corporation		70,000		8,339,100

				11,755,940

Software - 2.4%
Adobe Systems Incorporated (a)		45,000		3,271,500
Microsoft Corporation		100,000		4,645,000

				7,916,500

Specialty Retail - 3.6%
The Home Depot, Inc.		50,000		5,248,500
Tiffany & Co.		35,000		3,740,100
Tractor Supply Company		40,000		3,152,800

				12,141,400

Textiles, Apparel & Luxury Goods - 2.3%
NIKE, Inc. - Class B		33,500		3,221,025
V.F. Corporation		60,000		4,494,000

				7,715,025

TOTAL COMMON STOCKS
(Cost $224,223,416)				328,697,199


SHORT-TERM INVESTMENT - 1.6%	Shares		Value
Money Market Fund (c) - 1.6%
Federated Government Obligations Fund -Institutional Shares, 0.01%		5,191,366	$	5,191,366

TOTAL SHORT-TERM INVESTMENT
(Cost $5,191,366)				5,191,366

Total Investments - 100.1%
(Cost $229,414,782)				333,888,565
Liabilities in Excess of Other Assets - (0.1)%				(196,446	)

TOTAL NET ASSETS - 100.0%			$	333,692,119

(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.

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

LKCM BALANCED FUND

SCHEDULEOF INVESTMENTS

December 31, 2014


COMMON STOCKS - 71.0%	Shares		Value
Aerospace & Defense - 2.4%
General Dynamics Corporation		1,400	$	192,668
Honeywell International Inc.		3,400		339,728
Rockwell Collins, Inc.		4,400		371,712

				904,108

Air Freight & Logistics - 0.8%
United Parcel Service, Inc. - Class B		2,600		289,042

Banks - 6.1%
Bank of America Corporation		11,000		196,790
Comerica Incorporated		9,500		444,980
Cullen/Frost Bankers, Inc.		3,900		275,496
SunTrust Banks, Inc.		11,300		473,470
Wells Fargo & Company		9,071		497,272
Zions Bancorporation		13,300		379,183

				2,267,191

Beverages - 1.9%
The Coca-Cola Company		8,600		363,092
PepsiCo, Inc.		3,600		340,416

				703,508

Biotechnology - 1.8%
Celgene Corporation (a)		5,800		648,788

Chemicals - 4.0%
Air Products and Chemicals, Inc.		2,500		360,575
Airgas, Inc.		3,000		345,540
E. I. du Pont de Nemours and Company		4,200		310,548
FMC Corporation		4,300		245,229
Monsanto Company		1,900		226,993

				1,488,885

Commercial Services & Supplies - 1.9%
Copart, Inc. (a)		11,000		401,390
Waste Management, Inc.		6,100		313,052

				714,442

Communications Equipment - 0.4%
QUALCOMM Incorporated		2,000		148,660

Computers & Peripherals - 3.2%
Apple Inc.		5,950		656,761
EMC Corporation		9,400		279,556
International Business Machines Corporation		1,500		240,660

				1,176,977

Construction Materials - 0.8%
Martin Marietta Materials, Inc.		2,700		297,864

Containers & Packaging - 1.0%
Ball Corporation		5,700		388,569

Diversified Financials - 1.1%
JPMorgan Chase & Co.		6,400		400,512

Diversified Telecommunication Services - 1.2%
AT&T Inc.		7,400		248,566


COMMON STOCKS	Shares		Value
Diversified Telecommunication Services - 1.2%, Continued
Verizon Communications, Inc.		3,841	$	179,682

				428,248

Electrical Equipment & Instruments - 0.5%
Emerson Electric Co.		3,000		185,190

Electronic Equipment & Instruments - 1.1%
National Instruments Corporation		7,500		233,175
Trimble Navigation Limited (a)		6,000		159,240

				392,415

Energy Equipment & Services - 0.8%
Schlumberger Limited (b)		3,395		289,967

Food & Drug Retailing - 3.2%
CVS Caremark Corporation		4,700		452,657
Wal-Mart Stores, Inc.		4,100		352,108
Walgreen Boots Alliance, Inc.		5,200		396,240

				1,201,005

Health Care Equipment & Supplies - 2.5%
PerkinElmer, Inc.		12,000		524,760
Thermo Fisher Scientific Inc.		3,100		388,399

				913,159

Household Products - 2.4%
Colgate-Palmolive Company		4,700		325,193
Kimberly-Clark Corporation		2,100		242,634
The Procter & Gamble Company		3,500		318,815

				886,642

Industrial Conglomerates - 0.6%
General Electric Company		9,400		237,538

Insurance - 1.7%
MetLife, Inc.		6,300		340,767
Prudential Financial, Inc.		3,400		307,564

				648,331

Internet Catalog & Retail - 1.1%
Amazon.com, Inc. (a)		1,300		403,455

Internet Software & Services - 4.9%
Akamai Technologies, Inc. (a)		6,600		415,536
Alibaba Group Holding Ltd. - ADR (a) (b)		4,500		467,730
eBay Inc. (a)		6,000		336,720
Google Inc. - Class A (a)		350		185,731
Google Inc. - Class C (a)		350		184,240
Sabre Corporation		12,000		243,240

				1,833,197

IT Consulting & Services - 1.6%
Accenture PLC - Class A (b)		3,200		285,792
Automatic Data Processing, Inc.		3,700		308,469

				594,261

Machinery - 2.0%
Danaher Corporation		4,900		419,979

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

LKCM BALANCED FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


COMMON STOCKS	Shares		Value
Machinery - 2.0%, Continued
Pall Corporation		3,200	$	323,872

				743,851

Media - 4.1%
CBS Corporation - Class B		5,600		309,904
DIRECTV (a)		3,900		338,130
Time Warner Inc.		5,800		495,436
The Walt Disney Company		4,000		376,760

				1,520,230

Metals & Mining - 0.4%
Commercial Metals Company		9,500		154,755

Oil & Gas & Consumable Fuels - 5.6%
Cabot Oil & Gas Corporation		10,200		302,022
Chevron Corporation		2,695		302,325
EOG Resources, Inc.		3,800		349,866
Exxon Mobil Corporation		3,227		298,336
Pioneer Natural Resources Company		1,400		208,390
Range Resources Corporation		4,000		213,800
SM Energy Company		3,400		131,172
The Williams Companies, Inc.		5,700		256,158

				2,062,069

Pharmaceuticals - 4.3%
Abbott Laboratories		10,200		459,204
AbbVie Inc.		8,200		536,608
Merck & Co., Inc.		5,200		295,308
Pfizer Inc.		10,000		311,500

				1,602,620

Real Estate Investment Trusts - 0.7%
American Tower Corporation		2,600		257,010

Road & Rail - 1.0%
Union Pacific Corporation		3,000		357,390

Software - 1.8%
Adobe Systems Incorporated (a)		4,100		298,070
Citrix Systems, Inc. (a)		4,000		255,200
Nuance Communications, Inc. (a)		8,000		114,160

				667,430

Specialty Retail - 2.2%
The Home Depot, Inc.		4,000		419,880
O’Reilly Automotive, Inc. (a)		2,100		404,502

				824,382

Textiles, Apparel & Luxury Goods - 1.2%
V.F. Corporation		5,700		426,930

Thrifts & Mortgage Finance - 0.7%
Capitol Federal Financial Inc.		19,500		249,210

TOTAL COMMON STOCKS
(Cost $15,000,503)				26,307,831


CORPORATE BONDS - 27.5%	Principal Amount		Value
Banks - 3.5%
Bank of America Corporation
1.350%, 11/21/2016	$	250,000	$	249,404
BB&T Corporation:
2.150%, 03/22/2017
Callable 02/22/2017		200,000		202,992
2.250%, 02/01/2019
Callable 01/02/2019		115,000		115,345
Comerica Incorporated
2.125%, 05/23/2019
Callable 04/23/2019		310,000		308,247
SunTrust Banks, Inc.
3.500%, 01/20/2017
Callable 12/20/2016		300,000		312,891
Wells Fargo & Company
2.625%, 12/15/2016		100,000		102,790

				1,291,669

Beverages - 0.6%
Anheuser-Busch InBev Worldwide Inc.
1.375%, 07/15/2017		100,000		99,973
The Coca-Cola Company
5.350%, 11/15/2017		100,000		110,966

				210,939

Biotechnology - 1.5%
Amgen Inc.
2.125%, 05/15/2017		225,000		228,083
Gilead Sciences, Inc.
2.050%, 04/01/2019		335,000		335,386

				563,469

Chemicals - 3.1%
Air Products and Chemicals, Inc.:
2.000%, 08/02/2016		100,000		101,671
1.200%, 10/15/2017		150,000		148,584
Eastman Chemical Company:
3.000%, 12/15/2015		200,000		203,838
2.400%, 06/01/2017		160,000		162,592
ECOLAB INC.
1.450%, 12/08/2017		250,000		247,936
The Sherwin-Williams Company
1.350%, 12/15/2017		300,000		298,144

				1,162,765

Commercial Services & Supplies - 0.5%
Waste Management, Inc.
2.600%, 09/01/2016		200,000		204,678

Computers & Peripherals - 1.6%
Hewlett-Packard Company:
2.650%, 06/01/2016		100,000		101,931
3.000%, 09/15/2016		175,000		179,760
NetApp, Inc.
2.000%, 12/15/2017		300,000		301,895

				583,586

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

LKCM BALANCED FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


CORPORATE BONDS	Principal Amount		Value
Consumer Finance - 0.5%
American Express Credit Corporation
2.375%, 03/24/2017	$	175,000	$	179,060

Consumer Services - 0.6%
The Western Union Company
2.875%, 12/10/2017		225,000		229,854

Diversified Financials - 0.8%
JPMorgan Chase & Co.
2.000%, 08/15/2017		300,000		303,045

Diversified Telecommunication Services - 1.0%
AT&T Inc.
2.400%, 08/15/2016		200,000		204,126
Verizon Communications, Inc.
2.000%, 11/01/2016		150,000		152,267

				356,393

Electrical Equipment & Instruments - 0.8%
Roper Industries, Inc.
1.850%, 11/15/2017		300,000		300,573

Energy Equipment & Services - 0.5%
National Oilwell Varco, Inc.
1.350%, 12/01/2017		200,000		197,571

Food & Drug Retailing - 1.5%
CVS Caremark Corporation:
5.750%, 06/01/2017		100,000		110,427
2.250%, 12/05/2018
Callable 11/05/2018		150,000		151,481
Walgreen Co.
1.800%, 09/15/2017		300,000		300,344

				562,252

Food Products - 0.2%
Kraft Foods Group, Inc.
2.250%, 06/05/2017		75,000		76,282

Health Care Equipment & Supplies - 0.9%
Thermo Fisher Scientific Inc.
1.850%, 01/15/2018		325,000		322,679

Health Care Equipment & Supplies - 0.3%
DENTSPLY International Inc.
2.750%, 08/15/2016		100,000		102,225

Health Care Providers & Services - 1.4%
Express Scripts Holding Co:
3.125%, 05/15/2016		200,000		205,657
2.650%, 02/15/2017		45,000		46,036
McKesson Corporation
3.250%, 03/01/2016		250,000		256,039

				507,732

Insurance - 0.6%
Prudential Financial, Inc.
3.000%, 05/12/2016		200,000		205,008


CORPORATE BONDS	Principal Amount		Value
Internet Catalog & Retail - 0.8%
Amazon.com, Inc.
1.200%, 11/29/2017	$	295,000	$	292,077

Internet Software & Services - 0.3%
eBay Inc.
1.350%, 07/15/2017		125,000		124,120

Media - 0.8%
DIRECTV Holdings LLC
2.400%, 03/15/2017		300,000		305,824

Oil & Gas & Consumable Fuels - 1.6%
Apache Corporation
5.625%, 01/15/2017		75,000		81,080
Noble Holding International Limited (b):
3.050%, 03/01/2016		160,000		161,451
2.500%, 03/15/2017		150,000		143,571
Occidental Petroleum Corporation
1.750%, 02/15/2017		200,000		201,257

				587,359

Pharmaceuticals - 1.4%
AbbVie Inc.
2.000%, 11/06/2018		134,000		133,673
Merck & Co., Inc.
1.100%, 01/31/2018		275,000		272,189
Teva Pharmaceutical Industries Ltd. (b)
2.400%, 11/10/2016		100,000		102,113

				507,975

Semiconductor Equipment & Products - 2.2%
Applied Materials, Inc.
2.650%, 06/15/2016		200,000		204,476
Broadcom Corporation
2.700%, 11/01/2018		300,000		307,450
Intel Corporation
1.350%, 12/15/2017		300,000		299,776

				811,702

Software - 0.5%
Oracle Corporation
1.200%, 10/15/2017		200,000		199,370

TOTAL CORPORATE BONDS
(Cost $10,177,189)				10,188,207

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

LKCM BALANCED FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


SHORT-TERM INVESTMENT -1.4%	Shares		Value
Money Market Fund (c) - 1.4%
Federated Government Obligations
Fund - Institutional Shares, 0.01%		507,131	$	507,131

TOTAL SHORT-TERM INVESTMENT
(Cost $507,131)				507,131

Total Investments - 99.9%
(Cost $25,684,823)				37,003,169
Other Assets in Excess of Liabilities - 0.1%				24,498

TOTAL NET ASSETS - 100.0%			$	37,027,667

ADR	American Depository Receipt.

(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.

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

LKCM FIXED INCOME FUND

SCHEDULEOF INVESTMENTS

December 31, 2014


CORPORATE BONDS - 88.9%	Principal Amount		Value
Aerospace & Defense - 0.6%
Lockheed Martin Corporation
7.650%, 05/01/2016	$	1,250,000	$	1,361,693

Banks - 11.0%
Bank of America Corporation:
1.317%, 03/22/2018 (a)		4,548,000		4,584,830
4.200%, 08/26/2024		4,000,000		4,079,728
Branch Banking & Trust Company:
0.862%, 09/13/2016 (a)		2,325,000		2,318,025
0.793%, 05/23/2017 (a)		2,534,000		2,519,822
1.350%, 10/01/2017
Callable 09/01/2017		500,000		497,646
Comerica Incorporated:
3.000%, 09/16/2015		892,000		905,476
2.125%, 05/23/2019
Callable 04/23/2019		1,000,000		994,344
SunTrust Banks, Inc.
3.500%, 01/20/2017
Callable 12/20/2016		875,000		912,599
Wells Fargo & Company:
0.863%, 04/23/2018 (a)		2,500,000		2,506,130
4.125%, 08/15/2023		5,000,000		5,253,615

				24,572,215

Beverages - 0.9%
The Coca-Cola Company
5.350%, 11/15/2017		1,500,000		1,664,485
PepsiCo, Inc.
7.900%, 11/01/2018		214,000		260,572

				1,925,057

Biotechnology - 5.0%
Celgene Corporation:
2.450%, 10/15/2015		5,279,000		5,331,801
4.000%, 08/15/2023		4,000,000		4,217,792
Gilead Sciences, Inc.
2.050%, 04/01/2019		1,550,000		1,551,787

				11,101,380

Building Products - 0.7%
Masco Corporation
7.125%, 03/15/2020		1,350,000		1,566,000

Capital Markets - 3.2%
Morgan Stanley (a):
4.500%, 08/30/2015		1,000,000		1,012,798
1.514%, 04/25/2018		2,500,000		2,541,830
1.083%, 01/24/2019		3,500,000		3,510,378

				7,065,006

Chemicals - 2.5%
Airgas, Inc.
2.950%, 06/15/2016
Callable 05/15/2016		950,000		971,611
Eastman Chemical Company
3.000%, 12/15/2015		2,625,000		2,675,374


CORPORATE BONDS	Principal Amount		Value
Chemicals - 2.5%, Continued
ECOLAB INC.
3.000%, 12/08/2016	$	1,760,000	$	1,818,089

				5,465,074

Commercial Services & Supplies - 0.5%
Republic Services, Inc.
5.500%, 09/15/2019		1,000,000		1,127,757

Communications Equipment - 1.3%
Cisco Systems, Inc.:
5.500%, 02/22/2016		1,000,000		1,055,193
4.950%, 02/15/2019		700,000		782,772
Harris Corporation
6.375%, 06/15/2019		900,000		1,027,825

				2,865,790

Computers & Peripherals - 3.5%
Hewlett-Packard Company:
1.174%, 01/14/2019 (a)		2,000,000		1,967,706
4.650%, 12/09/2021		2,000,000		2,143,440
4.050%, 09/15/2022		2,000,000		2,035,148
International Business Machines Corporation
5.700%, 09/14/2017		1,500,000		1,672,710

				7,819,004

Consumer Finance - 2.5%
American Express Company (a)
0.823%, 05/22/2018		3,533,000		3,535,833
American Express Credit Corporation
2.800%, 09/19/2016		1,900,000		1,956,696

				5,492,529

Consumer Services - 2.7%
The Western Union Company:
5.930%, 10/01/2016		1,000,000		1,074,133
2.875%, 12/10/2017		2,250,000		2,298,544
3.650%, 08/22/2018		2,500,000		2,595,882

				5,968,559

Containers & Packaging - 4.2%
Ball Corporation:
6.750%, 09/15/2020
Callable 03/15/2015		2,000,000		2,090,000
5.750%, 05/15/2021
Callable 11/15/2015		5,000,000		5,262,500
5.000%, 03/15/2022		2,000,000		2,070,000

				9,422,500

Diversified Financials - 4.2%
JPMorgan Chase & Co.:
3.450%, 03/01/2016		4,125,000		4,235,113
1.134%, 01/25/2018 (a)		3,000,000		3,025,827
3.875%, 09/10/2024		2,000,000		2,004,108

				9,265,048

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

LKCM FIXED INCOME FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


CORPORATE BONDS	Principal Amount		Value
Diversified Telecommunication Services - 10.2%
AT&T Inc. (a):
1.146%, 11/27/2018	$	3,000,000	$	3,051,114
0.909%, 03/11/2019		1,500,000		1,511,379
CenturyLink, Inc.:
5.150%, 06/15/2017		2,000,000		2,105,000
6.150%, 09/15/2019		1,402,000		1,521,170
5.800%, 03/15/2022		4,500,000		4,691,250
Verizon Communications Inc. (a):
1.771%, 09/15/2016		4,000,000		4,074,220
1.991%, 09/14/2018		4,000,000		4,164,736
4.150%, 03/15/2024
Callable 12/15/2023		1,500,000		1,554,036

				22,672,905

Electrical Equipment & Instruments - 0.9%
Roper Industries, Inc.
1.850%, 11/15/2017		2,000,000		2,003,820

Energy Equipment & Services - 1.5%
Weatherford International, Inc.
6.350%, 06/15/2017		1,550,000		1,657,888
Weatherford International Ltd. (b)
4.500%, 04/15/2022
Callable 01/15/2022		2,000,000		1,782,732

				3,440,620

Food & Drug Retailing - 4.5%
CVS Caremark Corporation:
5.750%, 06/01/2017		2,750,000		3,036,748
2.250%, 12/05/2018
Callable 11/05/2018		1,725,000		1,742,036
4.125%, 05/15/2021
Callable 02/15/2021		2,000,000		2,171,664
Walgreen Co.
3.100%, 09/15/2022		3,000,000		2,966,715

				9,917,163

Food Products - 0.3%
Kraft Foods Group, Inc.
2.250%, 06/05/2017		555,000		564,486

Health Care Equipment & Supplies - 3.3%
DENTSPLY International Inc.
2.750%, 08/15/2016		1,446,000		1,478,169
PerkinElmer, Inc.
5.000%, 11/15/2021
Callable 08/15/2021		1,094,000		1,191,867
Thermo Fisher Scientific Inc.
4.150%, 02/01/2024
Callable 11/01/2023		4,500,000		4,754,628

				7,424,664

Health Care Providers & Services - 2.3%
Express Scripts Holding Co
3.125%, 05/15/2016		2,760,000		2,838,069


CORPORATE BONDS	Principal Amount		Value
Health Care Providers & Services - 2.3%, Continued
McKesson Corporation
3.250%, 03/01/2016	$	2,275,000	$	2,329,955

				5,168,024

Hotels, Restaurants & Leisure - 0.5%
McDonald’s Corporation
5.350%, 03/01/2018		1,000,000		1,112,108

Household Durables - 1.4%
Jarden Corporation
7.500%, 05/01/2017		2,790,000		3,069,000

Household Products - 0.5%
The Procter & Gamble Company
8.000%, 09/01/2024		775,000		1,089,871

Insurance - 1.4%
Prudential Financial, Inc.
3.000%, 05/12/2016		3,023,000		3,098,696

Media - 0.7%
The Walt Disney Company
5.625%, 09/15/2016		1,500,000		1,622,106

Metals & Mining - 0.2%
Alcoa Inc.
5.550%, 02/01/2017		500,000		533,792

Multiline Retail - 2.3%
Family Dollar Stores, Inc.
5.000%, 02/01/2021		4,500,000		4,752,950
Kohl’s Corporation
6.250%, 12/15/2017		282,000		313,879

				5,066,829

Oil & Gas & Consumable Fuels - 9.9%
Anadarko Petroleum Corporation:
5.950%, 09/15/2016		2,000,000		2,139,628
6.375%, 09/15/2017		2,000,000		2,224,996
Enterprise Products Operating LLC:
3.200%, 02/01/2016		2,229,000		2,282,389
3.750%, 02/15/2025
Callable 11/15/2024		4,000,000		4,023,456
Noble Holding International Limited (b):
3.450%, 08/01/2015		4,855,000		4,919,557
3.950%, 03/15/2022		2,500,000		2,193,467
Range Resources Corporation
5.000%, 08/15/2022
Callable 02/15/2017		4,350,000		4,371,750

				22,155,243

Pharmaceuticals - 0.4%
Allergan, Inc.
1.350%, 03/15/2018		1,017,000		990,890

Real Estate Investment Trusts - 4.1%
American Tower Corporation:
5.050%, 09/01/2020		1,250,000		1,357,854
4.700%, 03/15/2022		4,870,000		5,113,943

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

LKCM FIXED INCOME FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


CORPORATE BONDS	Principal Amount		Value
Real Estate Investment Trusts - 4.1%, Continued
5.000%, 02/15/2024	$	2,500,000	$	2,656,032

				9,127,829

Road & Rail - 0.1%
Burlington Northern Santa Fe Corporation
5.650%, 05/01/2017		185,000		203,030

Semiconductor Equipment & Products - 0.9%
Analog Devices, Inc.
3.000%, 04/15/2016		1,050,000		1,074,436
Texas Instruments Incorporated
2.375%, 05/16/2016		1,000,000		1,023,304

				2,097,740

Specialty Retail - 0.7%
Lowe’s Companies, Inc.
5.000%, 10/15/2015		525,000		542,806
O’Reilly Automotive, Inc.
4.875%, 01/14/2021
Callable 10/14/2020		1,000,000		1,099,351

				1,642,157

TOTAL CORPORATE BONDS
(Cost $194,491,944)				198,018,585


PREFERRED STOCKS - 0.9%	Shares
Capital Markets - 0.9%
Merrill Lynch Preferred Capital Trust III
Callable 02/17/2015		75,000		1,915,500

TOTAL PREFERRED STOCKS
(Cost $1,820,339)				1,915,500


U.S. GOVERNMENT ISSUES - 0.5%	Principal Amount
U.S. Treasury Notes - 0.5%
4.250%, 08/15/2015	$	500,000		512,578
4.500%, 02/15/2016		500,000		523,203

TOTAL U.S. GOVERNMENT ISSUES
(Cost $994,056)				1,035,781


U.S. GOVERNMENT SPONSORED ENTITIES - 7.6%
Fannie Mae - 0.9%
5.000%, 03/15/2016		1,000,000		1,054,694
1.250%, 12/27/2019
Callable 03/27/2015		1,000,000		1,001,264

				2,055,958

Federal Home Loan Banks - 6.4%
4.875%, 05/17/2017		1,000,000		1,092,718
1.000%, 07/23/2019
Callable 07/23/2015		3,500,000		3,507,122


U.S. GOVERNMENT SPONSORED ENTITIES	Principal Amount		Value
Federal Home Loan Banks - 6.4%, Continued
1.500%, 07/30/2019
Callable 01/30/2015	$	2,500,000	$	2,502,797
1.000%, 08/13/2019
Callable 02/13/2015		2,750,000		2,752,426
0.375%, 11/26/2019
Callable 02/26/2015		2,500,000		2,496,675
1.500%, 04/25/2028
Callable 01/25/2015		2,000,000		1,999,710

				14,351,448

Freddie Mac - 0.3%
5.125%, 11/17/2017		500,000		556,808

TOTAL U.S. GOVERNMENT SPONSORED ENTITIES
(Cost $16,752,740)				16,964,214


SHORT-TERM INVESTMENT - 1.4%	Shares
Money Market Fund (c) - 1.4%
Federated Government Obligations Fund - Institutional Shares, 0.01%		3,187,336		3,187,336

TOTAL SHORT-TERM INVESTMENT
(Cost $3,187,336)				3,187,336

Total Investments - 99.3%
(Cost $217,246,415)				221,121,416
Other Assets in Excess of Liabilities - 0.7%				1,582,820

TOTAL NET ASSETS - 100.0%			$	222,704,236

(a)	Floating rate.

(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.

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

STATEMENTOF ASSETSAND LIABILITIES

December 31, 2014


	LKCM Small Cap Equity Fund		LKCM Small-Mid Cap Equity Fund		LKCM Equity Fund		LKCM Balanced Fund		LKCM Fixed Income Fund

Assets:
Investments, at value*	$	870,003,592	$	391,517,798	$	333,888,565	$	37,003,169	$	221,121,416
Receivable for Fund shares sold		518,974		671,783		98,817		3,878		26,345
Dividends and interest receivable		342,569		169,214		319,663		77,496		1,859,182
Other assets		63,735		63,218		34,854		5,076		21,732

Total assets		870,928,870		392,422,013		334,341,899		37,089,619		223,028,675

Liabilities:
Payable for Fund shares redeemed		13,643,690		145,350		59,087		—		—
Payable for investment advisory fees (Note B)		1,704,000		476,693		476,062		39,048		248,978
Payable for distribution expense (Note B)		7,200		—		—		—		—
Accrued expenses and other liabilities		278,048		132,169		114,631		22,904		75,461

Total liabilities		15,632,938		754,212		649,780		61,952		324,439

Net assets	$	855,295,932	$	391,667,801	$	333,692,119	$	37,027,667	$	222,704,236

Net assets consist of:
Paid in capital	$	611,728,027	$	312,295,122	$	229,190,441	$	25,655,171	$	218,831,758
Accumulated net investment income		—		—		22,236		1,119		—
Accumulated net realized gain (loss) on investments		31,007,184		6,577,781		5,659		53,031		(2,523	)
Net unrealized appreciation on investments		212,560,721		72,794,898		104,473,783		11,318,346		3,875,001

Net assets	$	855,295,932	$	391,667,801	$	333,692,119	$	37,027,667	$	222,704,236


INSTITUTIONAL CLASS
Net assets	$	840,630,512	$	391,667,801	$	333,692,119	$	37,027,667	$	222,704,236
Shares of beneficial interest outstanding (unlimited shares of no par value authorized)		34,957,741		32,366,547		14,630,258		1,842,011		20,574,085
Net asset value per share (offering and redemption price)	$	24.05	$	12.10	$	22.81	$	20.10	$	10.82


ADVISER CLASS**
Net assets	$	14,665,420
Shares of beneficial interest outstanding (unlimited shares of no par value authorized)		634,711
Net asset value per share (offering and redemption price)	$	23.11


* Cost of Investments	$	657,442,871	$	318,722,900	$	229,414,782	$	25,684,823	$	217,246,415

**	Currently, Adviser Class shares are authorized only for the Small Cap Equity, Small-Mid Cap Equity and Equity Funds, and are offered only by the Small Cap Equity Fund.

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

STATEMENTOF OPERATIONS

For the Year Ended December 31, 2014


	LKCM Small Cap Equity Fund			LKCM Small-Mid Cap Equity Fund			LKCM Equity Fund			LKCM Balanced Fund			LKCM Fixed Income Fund

Investment Income:
Dividends*	$	7,076,403		$	1,450,890		$	4,965,442		$	560,203		$	131,250
Interest		2,929			2,194			1,182			170,932			5,669,681

Total income		7,079,332			1,453,084			4,966,624			731,135			5,800,931


Expenses:
Investment advisory fees (Note B)		7,410,453			2,836,530			2,301,986			236,115			1,104,675
Distribution expense – Adviser Class (Note B)		66,717			—			—			—			—
Administrative fees		741,691			318,418			282,633			27,590			175,701
Accounting and transfer agent fees and expenses		344,859			1,041,553			150,684			51,766			104,580
Professional fees		152,837			59,575			52,794			9,363			36,249
Trustees’ fees		142,655			47,645			39,757			4,507			31,063
Custody fees and expenses		132,316			45,262			35,891			5,751			24,107
Federal and state registration		92,486			63,468			74,263			15,320			27,048
Reports to shareholders		40,796			43,961			11,832			2,178			4,559
Other		223,143			79,930			70,071			7,821			47,190
											��
Total expenses		9,347,953			4,536,342			3,019,911			360,411			1,555,172
Less, expense waiver and/or reimbursement (Note B)		—			(754,302	)		(389,070	)		(69,808	)		(119,095	)

Net expenses		9,347,953			3,782,040			2,630,841			290,603			1,436,077

Net investment income (loss)		(2,268,621	)		(2,328,956	)		2,335,783			440,532			4,364,854


Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments		116,963,656			21,926,334			13,262,162			921,573			1,423,528
Net change in unrealized appreciation/depreciation on investments		(152,665,777	)		(35,932,810	)		5,085,860			777,601			(2,042,637	)


Net realized and unrealized gain (loss) on investments		(35,702,121	)		(14,006,476	)		18,348,022			1,699,174			(619,109	)


Net Increase (Decrease) in Net Assets Resulting from Operations	$	(37,970,742	)	$	(16,335,432	)	$	20,683,805		$	2,139,706		$	3,745,745


* Net of foreign taxes withheld	$	1,646		$	—		$	—		$	—		$	—

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

STATEMENTSOF CHANGESIN NET ASSETS


	LKCM Small Cap Equity Fund						LKCM Small-Mid Cap Equity Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2014			Year Ended December 31, 2013
Operations:
Net investment loss	$	(2,268,621	)	$	(2,418,900	)	$	(2,328,956	)	$	(1,815,616	)
Net realized gain on investments		116,963,656			105,100,295			21,926,334			362,333
Net change in unrealized appreciation/depreciation on investments		(152,665,777	)		197,156,682			(35,932,810	)		92,231,060

Net increase (decrease) in net assets resulting from operations		(37,970,742	)		299,838,077			(16,335,432	)		90,777,777


Dividends and Distributions to Institutional Class Shareholders:
Net investment income		—			(120,236	)		—			—
Net realized gain on investments		(111,270,982	)		(80,953,459	)		(9,716,281	)		—

		(111,270,982	)		(81,073,695	)		(9,716,281	)		—


Dividends and Distributions to Adviser Class Shareholders:
Net realized gain on investments		(1,943,645	)		(3,215,054	)		—			—


Net increase (decrease) in net assets resulting from Fund share transactions (Note C)		(82,278,249	)		12,488,180			51,296,819			25,481,047


Total increase (decrease) in net assets		(233,463,618	)		228,037,508			25,245,106			116,258,824

Net Assets:
Beginning of period		1,088,759,550			860,722,042			366,422,695			250,163,871

End of period	$	855,295,932		$	1,088,759,550		$	391,667,801		$	366,422,695

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

STATEMENTSOF CHANGESIN NET ASSETS


	LKCM Equity Fund						LKCM Balanced Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2014			Year Ended December 31, 2013
Operations:
Net investment income	$	2,335,783		$	1,660,296		$	440,532		$	272,081
Net realized gain on investments		13,262,162			5,864,180			921,573			296,012
Net change in unrealized appreciation/depreciation on investments		5,085,860			65,864,138			777,601			5,221,417

Net increase in net assets resulting from operations		20,683,805			73,388,614			2,139,706			5,789,510


Dividends and Distributions to Shareholders:
Net investment income		(2,313,547	)		(1,708,848	)		(439,413	)		(272,556	)
Net realized gain on investments		(12,862,260	)		(6,674,882	)		(835,323	)		(56,337	)

		(15,175,807	)		(8,383,730	)		(1,274,736	)		(328,893	)


Net increase in net assets resulting from Fund share transactions (Note C)		4,252,493			97,797,389			830,413			8,071,183


Total increase in net assets		9,760,491			162,802,273			1,695,383			13,531,800

Net Assets:
Beginning of period		323,931,628			161,129,355			35,332,284			21,800,484

End of period*	$	333,692,119		$	323,931,628		$	37,027,667		$	35,332,284


* Including accumulated net investment income of	$	22,236		$	—		$	1,119		$	—

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

STATEMENTSOF CHANGESIN NET ASSETS


	LKCM Fixed Income Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013
Operations:
Net investment income	$	4,364,854		$	5,201,042
Net realized gain on investments		1,423,528			431,378
Net change in unrealized appreciation/depreciation on investments		(2,042,637	)		(5,509,584	)

Net increase in net assets resulting from operations		3,745,745			122,836


Dividends and Distributions to Shareholders:
Net investment income		(4,405,305	)		(5,205,420	)
Return of capital		(17,185	)		—
Net realized gain on investments		(1,154,873	)		(1,231,771	)

		(5,577,363	)		(6,437,191	)


Net increase in net assets resulting from Fund share transactions (Note C)		3,431,422			21,539,078


Total increase in net assets		1,599,804			15,224,723

Net Assets:
Beginning of period		221,104,432			205,879,709

End of period	$	222,704,236		$	221,104,432

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

FINANCIAL HIGHLIGHTS

SELECTED DATAFOR EACH SHAREOF CAPITAL STOCK OUTSTANDING


	LKCM Small Cap Equity Fund – Institutional Class

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Net Asset Value – Beginning of Period	$	28.33		$	22.69		$	22.45		$	21.49		$	16.16

Net investment income (loss)		(0.06	)⁽¹⁾		(0.06	)⁽²⁾		0.13	⁽¹⁾		(0.08	)⁽¹⁾		(0.07	)⁽¹⁾
Net realized and unrealized gain (loss) on investments		(0.77	)		8.02			2.01			1.04			5.40

Total from investment operations		(0.83	)		7.96			2.14			0.96			5.33

Dividends from net investment income		—			—			(0.13	)		—			—
Distributions from net realized gains		(3.45	)		(2.32	)		(1.77	)		—			—

Total dividends and distributions		(3.45	)		(2.32	)		(1.90	)		—			—

Net Asset Value – End of Period	$	24.05		$	28.33		$	22.69		$	22.45		$	21.49

Total Return		-3.11%			35.11%			9.74%			4.47%			32.98%

Ratios and Supplemental Data:
Net assets, end of period (thousands)	$	840,631		$	1,047,607		$	819,985		$	785,280		$	690,511
Ratio of expenses to average net assets:		0.94%			0.95%			0.94%			0.95%			0.96%
Ratio of net investment income (loss) to average net assets:		(0.21)%			(0.23)%			0.53%			(0.33)%			(0.38)%
Portfolio turnover rate⁽³⁾		60%			47%			49%			50%			57%

⁽¹⁾	Net investment income (loss) per share represents net investment income (loss) divided by the average shares outstanding throughout the period.

⁽²⁾	Net investment loss per share is calculated using the ending balance of undistributed net investment loss prior to considerations of adjustments for permanent book and tax differences.

⁽³⁾	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.


	LKCM Small Cap Equity Fund – Adviser Class

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Net Asset Value – Beginning of Period	$	27.43		$	22.07		$	21.88		$	21.00		$	15.83

Net investment income (loss)		(0.12	)⁽¹⁾		(0.13	)⁽²⁾		0.07	⁽¹⁾		(0.13	)⁽¹⁾		(0.11	)⁽¹⁾
Net realized and unrealized gain (loss) on investments		(0.75	)		7.81			1.95			1.01			5.28

Total from investment operations		(0.87	)		7.68			2.02			0.88			5.17

Dividends from net investment income		—			—			(0.06	)		—			—
Distributions from net realized gains		(3.45	)		(2.32	)		(1.77	)		—			—

Total dividends and distributions		(3.45	)		(2.32	)		(1.83	)		—			—

Net Asset Value – End of Period	$	23.11		$	27.43		$	22.07		$	21.88		$	21.00

Total Return		-3.35%			34.81%			9.45%			4.19%			32.66%

Ratios and Supplemental Data:
Net assets, end of period (thousands)	$	14,665		$	41,153		$	40,737		$	43,124		$	44,124
Ratio of expenses to average net assets:		1.19%			1.20%			1.19%			1.20%			1.21%
Ratio of net investment income (loss) to average net assets:		(0.46)%			(0.48)%			0.28%			(0.58)%			(0.63)%
Portfolio turnover rate⁽³⁾		60%			47%			49%			50%			57%

⁽¹⁾	Net investment income (loss) per share represents net investment income (loss) divided by the average shares outstanding throughout the period.

⁽²⁾	Net investment loss per share is calculated using the ending balance of undistributed net investment loss prior to considerations of adjustments for permanent book and tax differences.

⁽³⁾	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.

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

FINANCIAL HIGHLIGHTS

SELECTED DATAFOR EACH SHAREOF CAPITAL STOCK OUTSTANDING


	LKCM Small-Mid Cap Equity Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012			May 2, 2011⁽¹⁾ through December 31, 2011
Net Asset Value – Beginning of Period	$	12.97		$	9.68		$	8.86		$	10.00

Net investment loss		(0.08	)⁽²⁾		(0.06	)⁽³⁾		(0.03	)⁽²⁾		(0.02	)⁽²⁾
Net realized and unrealized gain (loss) on investments		(0.48	)		3.35			0.85			(1.12	)

Total from investment operations		(0.56	)		3.29			0.82			(1.14	)

Distributions from net realized gains		(0.31	)		—			—			—

Net Asset Value – End of Period	$	12.10		$	12.97		$	9.68		$	8.86

Total Return		-4.39%			33.99%			9.26%			-11.40%	⁽⁴⁾

Ratios and Supplemental Data:
Net assets, end of period (thousands)	$	391,668		$	366,423		$	250,164		$	23,755
Ratio of expenses to average net assets:
Before expense waiver and/or reimbursement		1.20%			1.18%			1.18%			2.14%	⁽⁵⁾
After expense waiver and/or reimbursement		1.00%			1.00%			1.00%			1.00%	⁽⁵⁾
Ratio of net investment loss to average net assets:
Before expense waiver and/or reimbursement		(0.82)%			(0.77)%			(0.50)%			(1.55)%	⁽⁵⁾
After expense waiver and/or reimbursement		(0.62)%			(0.59)%			(0.32)%			(0.41)%	⁽⁵⁾
Portfolio turnover rate		72%			49%			56%			36%

⁽¹⁾	Commencement of operations.

⁽²⁾	Net investment loss per share represents net investment loss divided by the average shares outstanding throughout the period.

⁽³⁾	Net investment loss per share is calculated using the ending balance of undistributed net investment loss prior to considerations of adjustments for permanent book and tax differences.

⁽⁴⁾	Not annualized.

⁽⁵⁾	Annualized.


	LKCM Equity Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013⁽¹⁾			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Net Asset Value – Beginning of Period	$	22.44		$	17.62		$	15.34		$	15.18		$	13.02

Net investment income		0.17			0.14	⁽²⁾		0.14	⁽²⁾		0.11	⁽²⁾		0.08
Net realized and unrealized gain on investments		1.28			5.27			2.27			0.39			2.24

Total from investment operations		1.45			5.41			2.41			0.50			2.32

Dividends from net investment income		(0.16	)		(0.12	)		(0.12	)		(0.10	)		(0.08	)
Distributions from net realized gains		(0.92	)		(0.47	)		(0.01	)		(0.24	)		(0.08	)

Total dividends and distributions		(1.08	)		(0.59	)		(0.13	)		(0.34	)		(0.16	)

Net Asset Value – End of Period	$	22.81		$	22.44		$	17.62		$	15.34		$	15.18

Total Return		6.40%			30.74%			15.69%			3.30%			17.77%

Ratios and Supplemental Data:
Net assets, end of period (thousands)	$	333,692		$	323,932		$	161,129		$	102,548		$	72,370
Ratio of expenses to average net assets:
Before expense waiver and/or reimbursement		0.92%			0.93%			0.96%			0.99%			1.04%
After expense waiver and/or reimbursement		0.80%			0.80%			0.80%			0.80%			0.80%
Ratio of net investment income to average net assets:
Before expense waiver and/or reimbursement		0.59%			0.53%			0.69%			0.54%			0.39%
After expense waiver and/or reimbursement		0.71%			0.66%			0.85%			0.73%			0.63%
Portfolio turnover rate		14%			17%			12%			20%			23%

⁽¹⁾	On May 10, 2013, the Armstrong Fund was reorganized into the LKCM Equity Fund. Activity after May 10, 2013 reflects the Funds’ combined operations.

⁽²⁾	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.

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

FINANCIAL HIGHLIGHTS

SELECTED DATAFOR EACH SHAREOF CAPITAL STOCK OUTSTANDING


	LKCM Balanced Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Net Asset Value – Beginning of Period	$	19.63		$	16.11		$	14.53		$	14.25		$	13.09

Net investment income		0.24			0.17			0.19			0.17			0.18
Net realized and unrealized gain on investments		0.94			3.55			1.58			0.28			1.16

Total from investment operations		1.18			3.72			1.77			0.45			1.34

Dividends from net investment income		(0.24	)		(0.17	)		(0.19	)		(0.17	)		(0.18	)
Distributions from net realized gains		(0.47	)		(0.03	)		—			—			—

Total dividends and distributions		(0.71	)		(0.20	)		(0.19	)		(0.17	)		(0.18	)

Net Asset Value – End of Period	$	20.10		$	19.63		$	16.11		$	14.53		$	14.25

Total Return		5.99%			23.18%			12.20%			3.16%			10.31%

Ratios and Supplemental Data:
Net assets, end of period (thousands)	$	37,028		$	35,332		$	21,800		$	18,560		$	16,486
Ratio of expenses to average net assets:
Before expense waiver and/or reimbursement		0.99%			1.04%			1.10%			1.14%			1.25%
After expense waiver and/or reimbursement		0.80%			0.80%			0.80%			0.80%			0.80%
Ratio of net investment income to average net assets:
Before expense waiver and/or reimbursement		1.02%			0.72%			0.91%			0.83%			0.89%
After expense waiver and/or reimbursement		1.21%			0.96%			1.21%			1.17%			1.34%
Portfolio turnover rate		20%			10%			15%			34%			13%


	LKCM Fixed Income Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Net Asset Value – Beginning of Period	$	10.91		$	11.23		$	11.04		$	11.03		$	10.85

Net investment income		0.22			0.27			0.34			0.37			0.40
Net realized and unrealized gain (loss) on investments		(0.03	)		(0.26	)		0.25			0.09			0.22

Total from investment operations		0.19			0.01			0.59			0.46			0.62

Dividends from net investment income		(0.22	)		(0.27	)		(0.34	)		(0.37	)		(0.40	)
Distributions from net realized gains		(0.06	)		(0.06	)		(0.06	)		(0.08	)		(0.04	)

Total dividends and distributions		(0.28	)		(0.33	)		(0.40	)		(0.45	)		(0.44	)

Net Asset Value – End of Period	$	10.82		$	10.91		$	11.23		$	11.04		$	11.03

Total Return		1.72%			0.07%			5.44%			4.22%			5.82%

Ratios and Supplemental Data:
Net assets, end of period (thousands)	$	222,704		$	221,104		$	205,880		$	178,116		$	162,353
Ratio of expenses to average net assets:
Before expense waiver and/or reimbursement		0.70%			0.72%			0.71%			0.72%			0.73%
After expense waiver and/or reimbursement		0.65%			0.65%			0.65%			0.65%			0.65%
Ratio of net investment income to average net assets:
Before expense waiver and/or reimbursement		1.92%			2.34%			2.98%			3.31%			3.55%
After expense waiver and/or reimbursement		1.97%			2.41%			3.04%			3.38%			3.63%
Portfolio turnover rate		46%			30%			31%			24%			20%

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

LKCM FUNDS

NOTESTOTHE FINANCIAL STATEMENTS

A. Organization and Significant Accounting Policies: LKCM Funds (the “Trust”) is registered under the Investment Company Act of 1940 (“1940 Act”) as an open-end, management investment company. The Trust was organized as a Delaware business trust on February 10, 1994 and consists of eight diversified series, five of which are presented herein and include the LKCM Small Cap Equity Fund, LKCM Small-Mid Cap Equity Fund, LKCM Equity Fund, LKCM Balanced Fund and LKCM Fixed Income Fund (collectively, the “Funds”), the assets of which are invested in separate, independently managed portfolios. Investment operations of the Funds began on July 14, 1994 (LKCM Small Cap Equity Fund), January 3, 1996 (LKCM Equity Fund), December 30, 1997 (LKCM Balanced Fund and LKCM Fixed Income Fund), and May 2, 2011 (LKCM Small-Mid Cap Equity Fund—Institutional and Adviser Class Shares). The Small Cap Equity Fund and the Equity Fund created a second class of shares, Adviser Class Shares, and renamed the initial class as Institutional Class Shares on May 1, 2003. The Small Cap Equity Adviser Class Shares were initially sold on June 5, 2003 and are subject to expenses pursuant to the Rule 12b-1 plan described in Note B. The Equity Fund and Small-Mid Cap Equity Fund Adviser Class Shares have not yet commenced operations. Each Fund charges a 1% redemption fee for redemptions on Fund shares held for less than 30 days, unless otherwise determined by a Fund in its discretion.

The LKCM Small Cap Equity Fund seeks to maximize long-term capital appreciation by investing under normal circumstances at least 80% of its net assets in equity securities of smaller companies (those with market capitalizations at the time of investment between $600 million and $4.5 billion) which Luther King Capital Management Corporation (the “Adviser”) believes are likely to have above-average growth in revenue and/or earnings and potential for above-average capital appreciation. The LKCM Small-Mid Cap Equity Fund seeks to maximize long-term capital appreciation by investing under normal circumstances at least 80% of its net assets in equity securities of small-mid capitalization companies (those with market capitalizations at the time of investment between $1.25 billion and $10 billion) which the Adviser believes are likely to have above-average growth in revenue and/or earnings and potential for above average capital appreciation. The LKCM Equity Fund seeks to maximize long-term capital appreciation by investing under normal circumstances at least 80% of its net assets in equity securities of companies which the Adviser believes are likely to have above-average growth in revenue and/or earnings, above-average returns on shareholders’ equity, and/or potential for above-average capital appreciation. The LKCM Balanced Fund seeks to provide investors with current income and long-term capital appreciation by investing primarily in a portfolio of equity and fixed income securities and cash equivalent securities with at least 25% of the Fund’s total assets invested in fixed income securities under normal circumstances. The LKCM Fixed Income Fund seeks current income by investing under normal circumstances at least 80% of its net assets in a portfolio of investment grade corporate and U.S. government fixed income securities.

The following is a summary of significant accounting policies followed by the Funds in preparation of the financial statements. The Funds are investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946, Investment Companies.

1. Security Valuation: Securities listed or traded on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price taken from the exchange where the security is primarily traded. Nasdaq National Market securities are valued at the Nasdaq Official Closing Price (“NOCP”). Unlisted U.S. securities and listed U.S. securities not traded on the valuation date are valued at the mean of the most recent quoted bid and asked price. Securities listed on a foreign exchange for which market quotations are readily available are valued at the last quoted sales price available before the time when assets are valued. Debt securities are normally valued at the mean of the bid and ask price and/or by using a combination of broker quotes or matrix evaluations provided by an independent pricing service. Other assets and securities for which no market or broker quotations or matrix evaluations are readily available (including restricted securities) are valued in good faith at fair value using guidelines approved by the Board of Trustees. The Board has adopted specific guidelines and procedures for valuing portfolio securities and delegated their implementation to the Adviser. The guidelines and procedures authorize the Adviser to make all determinations regarding the fair value of a portfolio security and to report such determinations to the Board of Trustees. The Funds may also use independent pricing services to assist in pricing portfolio securities.

The Trust has adopted accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized in the three broad levels listed below.


Level 1	–	Quoted unadjusted prices for identical instruments in active markets to which the Trust has access at the date of measurement.
Level 2	–	Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.
Level 3	–	Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Trust’s own assumptions that market participants would use to price the asset or liability based on the best available information.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. As of December 31, 2014, the Funds’ assets carried at fair value were classified as follows:


LKCM Small Cap Equity Fund
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	869,558,608	$	—	$	—	$	869,558,608
Money Market Fund		444,984		—		—		444,984

Total Investments*	$	870,003,592	$	—	$	—	$	870,003,592


LKCM Small-Mid Cap Equity Fund
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	363,975,830	$	—	$	—	$	363,975,830
Money Market Funds		27,541,968		—		—		27,541,968

Total Investments*	$	391,517,798	$	—	$	—	$	391,517,798


LKCM Equity Fund
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	328,697,199	$	—	$	—	$	328,697,199
Money Market Fund		5,191,366		—		—		5,191,366

Total Investments*	$	333,888,565	$	—	$	—	$	333,888,565


LKCM Balanced Fund
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	26,307,831	$	—	$	—	$	26,307,831
Corporate Bonds		—		10,188,207		—		10,188,207
Money Market Fund		507,131		—		—		507,131

Total Investments*	$	26,814,962	$	10,188,207	$	—	$	37,003,169


LKCM Fixed Income Fund
Description	Level 1		Level 2		Level 3		Total
Preferred Stock	$	1,915,500	$	—	$	—	$	1,915,500
Corporate Bonds		—		198,018,585		—		198,018,585
U.S. Government Issues		—		1,035,781		—		1,035,781
U.S. Government Sponsored Entities		—		16,964,214		—		16,964,214
Money Market Fund		3,187,336		—		—		3,187,336

Total Investments*	$	5,102,836	$	216,018,580	$	—	$	221,121,416

Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments.

There were no transfers into or out of Level 1, Level 2 or Level 3 fair value measurements during the reporting period.

2. Federal Income Taxes: The Funds have elected to be treated as “regulated investment companies” under Subchapter M of the Internal Revenue Code and each Fund intends to distribute all of its investment company net taxable income and net capital gains to shareholders. Therefore, no federal income tax provision is recorded.

3. Distributions to Shareholders: The LKCM Small Cap Equity, LKCM Small-Mid Cap Equity and LKCM Equity Funds generally intend to pay dividends and net capital gain distributions, if any, at least on an annual basis. The LKCM Balanced and LKCM Fixed Income Funds generally intend to pay dividends on a quarterly basis and net capital gain distributions, if any, at least on an annual basis.

4. Foreign Securities: Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in U.S. companies and securities of the U.S. government. These risks include devaluation of currencies and future adverse political and economic developments. Moreover, securities of many foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. companies and securities of the U.S. government.

5. Expense Allocation: Expenses incurred by the Funds are allocated among the Funds based upon (i) relative average net assets, (ii) a specific identification basis as incurred, or (iii) evenly among the Funds, depending on the nature of the expense. Expenses that are directly attributable to a class of shares, such as Rule 12b-1 distribution fees, are charged to that class. For multi-class Funds, income, unrealized and realized gains/losses are generally allocated between the Fund’s classes in proportion to their respective net assets.

6. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

7. Guarantees and Indemnifications: In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims against the Funds that have not yet occurred. Based on experience, the Funds expect the risk of loss to be remote.

8. Other: Security and shareholder transactions are recorded on the trade date. Realized gains and losses on sales of investments are calculated on the identified cost basis. Dividend income and dividends and distributions to shareholders are recorded on the ex-dividend date. Interest income is recognized on the accrual basis. All discounts and premiums are amortized on the effective interest method for tax and financial reporting purposes.

Generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share.

Accordingly, at December 31, 2014, reclassifications were recorded as follows:


	LKCM Small Cap Equity Fund			LKCM Small-Mid Cap Equity Fund			LKCM Equity Fund		LKCM Balanced Fund		LKCM Fixed Income Fund
Accumulated net investment income		$2,268,621			$2,328,956			$—		$—		$57,636
Accumulated loss		—			—			—		—		(40,451	)
Capital stock		(2,268,621	)		(2,328,956	)		—		—		(17,185	)

9. Restricted and Illiquid Securities: The Funds are permitted to invest in securities that are subject to legal or contractual restrictions on resale or are illiquid. Restricted securities generally may be resold in transactions exempt from registration. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at the current valuation may be difficult.

B. Investment Advisory and Other Agreements: Luther King Capital Management Corporation (the “Adviser”) serves as the investment adviser to the Funds under an Investment Advisory Agreement (the “Agreement”). The Adviser receives a fee, computed daily and payable quarterly, at the annual rates presented below as applied to each Fund’s average daily net assets. The Adviser has contractually agreed to waive all or a portion of its management fee and/or reimburse the Funds through April 30, 2015 in order to limit each Fund’s operating expenses to the annual cap rates presented below. This expense limitation excludes interest, taxes, brokerage commissions, indirect fees and expenses relating to investments in other investment companies, including money market funds, and extraordinary expenses. For the year ended December 31, 2014, the Adviser waived the following management fees to meet its expense cap obligations:


	LKCM Small Cap Equity Fund			LKCM Small-Mid Cap Equity Fund		LKCM Equity Fund		LKCM Balanced Fund		LKCM Fixed Income Fund
Annual Advisory Rate		0.75%			0.75%		0.70%		0.65%		0.50%
Annual Cap on Expenses		1.00%	^(Inst.)		1.00%		0.80%		0.80%		0.65%
		1.25%	^(Adviser)
Fees Waived in 2014		—			$754,302		$389,070		$69,808		$119,095

U.S. Bancorp Fund Services, LLC serves as transfer agent and administrator for the Trust and serves as accounting services agent for the Trust. U.S. Bank, N.A. serves as custodian for the Funds.

Distribution services are performed pursuant to a distribution contract with Quasar Distributors, LLC, the Trust’s principal underwriter.

The Small Cap Equity Fund, Small-Mid Cap Equity and the Equity Fund have adopted a Rule 12b-1 plan under which the Adviser Class of each Fund may pay up to 1.00% of its average daily net assets for distribution and other services. However, the Board of Trustees has currently only authorized a fee of 0.25% of each Fund’s average daily net assets. For the year ended December 31, 2014, fees incurred by the Small Cap Equity Fund pursuant to the 12b-1 Plan were $66,717. The Adviser Class shares of the Equity Fund and the Small-Mid Cap Equity Fund have not yet commenced operations. The Funds have also adopted an Institutional Class Distribution Plan, under which each Fund may pay up to 0.75% of its average daily net assets for distribution and other services. Currently, the Board of Trustees has not authorized payments under this plan and, as a result, the Funds currently neither accrue nor pay any fees under the plan.

C. Fund Shares: At December 31, 2014, there was an unlimited number of shares of beneficial interest, no par value, authorized. The following table summarizes the activity in shares of each Fund:


LKCM Small Cap Equity Fund
	Year Ended December 31, 2014						Year Ended December 31, 2013
	Institutional Class						Institutional Class
	Shares			Amount			Shares			Amount
Shares sold		5,090,394		$	137,885,561			7,160,666		$	184,699,527
Shares issued to shareholders in reinvestment of distributions		3,894,617			95,145,501			2,344,622			66,376,248
Shares redeemed		(11,007,819	)		(292,497,239	)		(8,669,045	)		(229,999,280	)
Redemption fee					1,665						5,464

Net increase (decrease)		(2,022,808	)	$	(59,464,512	)		836,243		$	21,081,959

Shares Outstanding:
Beginning of period		36,980,549						36,144,306

End of period		34,957,741						36,980,549


	Year Ended December 31, 2014						Year Ended December 31, 2013
	Adviser Class						Adviser Class
	Shares			Amount			Shares			Amount
Shares sold		90,701		$	2,387,553			240,019		$	5,993,032
Shares issued to shareholders in reinvestment of distributions		82,216			1,929,605			116,816			3,201,933
Shares redeemed		(1,038,683	)		(27,132,211	)		(702,113	)		(17,789,230	)
Redemption fee					1,316						486

Net decrease		(865,766	)	$	(22,813,737	)		(345,278	)	$	(8,593,779	)

Shares Outstanding:
Beginning of period		1,500,477						1,845,755

End of period		634,711						1,500,477

Total Net Increase (Decrease)				$	(82,278,249	)				$	12,488,180


LKCM Small-Mid Cap Equity Fund

	Year Ended December 31, 2014						Year Ended December 31, 2013
	Shares			Amount			Shares			Amount
Shares sold		9,234,059		$	115,420,906			9,711,405		$	105,122,031
Shares issued to shareholders in reinvestment of distributions		746,263			9,164,107			—			—
Shares redeemed		(5,856,919	)		(73,288,257	)		(7,314,011	)		(79,641,825	)
Redemption fee					63						841

Net increase		4,123,403		$	51,296,819			2,397,394		$	25,481,047

Shares Outstanding:
Beginning of period		28,243,144						25,845,750

End of period		32,366,547						28,243,144


LKCM Equity Fund
	Year Ended December 31, 2014						Year Ended December 31, 2013
	Shares			Amount			Shares			Amount
Shares sold		3,761,309		$	85,328,023			5,470,658		$	101,665,684
Proceeds from reorganization		—			—			767,299			15,482,266
Shares issued to shareholders in reinvestment of distributions		610,212			14,126,415			326,996			7,314,894
Shares redeemed		(4,176,956	)		(95,202,980	)		(1,272,966	)		(26,674,481	)
Redemption fee					1,035						8,816
Capital contribution*					—						210

Net increase		194,565		$	4,252,493			5,291,987		$	97,797,389

Shares Outstanding:
Beginning of period		14,435,693						9,143,706

End of period		14,630,258						14,435,693


LKCM Balanced Fund
	Year Ended December 31, 2014						Year Ended December 31, 2013
	Shares			Amount			Shares			Amount
Shares sold		305,782		$	6,086,579			646,104		$	11,580,995
Shares issued to shareholders in reinvestment of distributions		60,084			1,218,695			16,446			304,154
Shares redeemed		(324,088	)		(6,475,021	)		(215,795	)		(3,825,436	)
Redemption fee					160						11,470

Net increase		41,778		$	830,413			446,755		$	8,071,183

Shares Outstanding:
Beginning of period		1,800,233						1,353,478

End of period		1,842,011						1,800,233


LKCM Fixed Income Fund
	Year Ended December 31, 2014						Year Ended December 31, 2013
	Shares			Amount			Shares			Amount
Shares sold		3,038,338		$	33,371,642			4,508,561		$	50,115,815
Shares issued to shareholders in reinvestment of distributions		468,864			5,108,498			523,187			5,755,116
Shares redeemed		(3,194,984	)		(35,048,778	)		(3,095,802	)		(34,333,599	)
Redemption fee					60						1,738
Capital contribution*					—						8

Net increase		312,218		$	3,431,422			1,935,946		$	21,539,078

Shares Outstanding:
Beginning of period		20,261,867						18,325,921

End of period		20,574,085						20,261,867

*	A capital contribution of $210 and $8 was made to the Equity Fund and Fixed Income Fund, respectively, by the Adviser for trade commission adjustments.

D. Security Transactions: Purchases and sales of investment securities, other than short-term investments, for the year ended December 31, 2014 were as follows:


	Purchases				Sales
	U.S. Government		Other		U.S. Government		Other
LKCM Small Cap Equity Fund	$	—	$	578,075,769	$	—	$	763,423,461
LKCM Small-Mid Cap Equity Fund		—		281,566,903		—		258,590,101
LKCM Equity Fund		—		58,941,735		—		44,224,066
LKCM Balanced Fund		—		7,787,289		—		7,241,565
LKCM Fixed Income Fund		20,830,522		81,993,099		14,095,000		85,677,840

E. Tax Information: At December 31, 2014, the components of accumulated earnings (losses) on a tax basis were as follows:


	LKCM Small Cap Equity Fund			LKCM Small-Mid Cap Equity Fund			LKCM Equity Fund			LKCM Balanced Fund			LKCM Fixed Income Fund
Cost of Investments	$	658,192,843		$	318,784,581		$	229,414,782		$	25,684,823		$	217,246,415

Gross Unrealized Appreciation	$	226,519,260		$	77,790,218		$	108,954,385		$	11,537,584		$	4,658,146
Gross Unrealized Depreciation		(14,708,511	)		(5,057,001	)		(4,480,602	)		(219,238	)		(783,145	)

Net Unrealized Appreciation	$	211,810,749		$	72,733,217		$	104,473,783		$	11,318,346		$	3,875,001

Undistributed Ordinary Income		—			��			27,895			1,119			—
Undistributed Long-Term Capital Gain		31,757,156			6,639,462			—			53,031			—

Total Distributable Earnings	$	31,757,156		$	6,639,462		$	27,895		$	54,150		$	—

Other Accumulated Losses	$	—		$	—		$	—		$	—		$	(2,523	)

Total Accumulated Gains	$	243,567,905		$	79,372,679		$	104,501,678		$	11,372,496		$	3,872,478

The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales.

During the year ended December 31, 2014, the LKCM Small-Mid Cap Equity Fund utilized capital loss carryforwards of $1,923,553.

At December 31, 2014, the LKCM Fixed Income Fund deferred, on a tax basis, post-October capital losses of $2,523.

The tax components of dividends paid during the periods shown below were as follows:


	Year Ended December 31, 2014						Year Ended December 31, 2013
	Ordinary Income		Return of Capital		Long-Term Capital Gains		Ordinary Income		Long-Term Capital Gains
LKCM Small Cap Equity Fund	$	—		—	$	113,214,627	$	120,236	$	84,168,513
LKCM Small-Mid Cap Equity Fund		—		—		9,716,281		—		—
LKCM Equity Fund		2,482,075		—		12,693,732		1,708,848		6,674,882
LKCM Balanced Fund		439,413		—		835,323		272,177		56,716
LKCM Fixed Income Fund		4,492,614		17,185		1,067,564		5,204,352		1,232,839

The Funds designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax years ended December 31, 2014 and 2013.

The Trust has adopted financial reporting rules regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. The Trust has reviewed all open tax years and major jurisdictions and concluded that there is no impact on the Funds’ financial position or results of operations. Tax years that remain open to examination by major tax jurisdictions include tax years ended December 31, 2011 through December 31, 2014. There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on tax returns as of December 31, 2014. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. If applicable, the Funds would recognize interest accrued related to unrecognized tax benefits in “interest expense” and penalties in “other expense” on the statement of operations.

F. Subsequent Events: In preparing these financial statements, the Trust has evaluated events after December 31, 2014 and determined that there were no significant subsequent events that would require adjustment to or additional disclosure in these financial statements.

REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of LKCM Funds:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of LKCM Funds (the “Funds”) comprising the LKCM Small Cap Equity Fund, LKCM Equity Fund, LKCM Balanced Fund, LKCM Fixed Income Fund, and LKCM Small-Mid Cap Equity Fund as of December 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the portfolios constituting the LKCM Funds as of December 31, 2014, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

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Milwaukee, Wisconsin

February 27, 2015

LKCM FUNDS

ADDITIONAL INFORMATION

December 31, 2014

The actual voting records relating to portfolio securities during the twelve month period ended June 30 (as filed with the SEC on Form N-PX) are available without charge, upon request, by calling the Funds toll free at 1-800-688-LKCM or by accessing the SEC’s website at www.sec.gov.

Availability of Quarterly Portfolio Schedule: The Funds’ are required to file complete schedules of portfolio holdings with the SEC for the first and third fiscal quarters on Form N-Q. Once filed, the Funds’ Form N-Q is available without charge upon request on the SEC’s website(http://www.sec.gov) and may be available by calling 1-800-688-LKCM. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating fee to the SEC’s Public Reference Room, Washington, DC 20549; or (iii) sending your request electronically to publicinfosec.gov.

Information about the Funds’ Trustees and Officers:

The business and affairs of the Funds are managed under the direction of the Funds’ Board of Trustees. Information pertaining to the Trustees of the Funds is set forth below. The Statement of Additional Information includes additional information about the Funds’ Trustees and officers and is available, without charge, upon request by calling 1-800-688-LKCM.


Name, Address and Age	Position(s) Held with the Trust	Term of Office & Length of Time Served⁽¹⁾	Principal Occupation During Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Directorships Held by Trustee
Disinterested Trustees:
H. Kirk Downey 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1942	Chairman of the Board of Trustees Trustee	Since 2005 Since 1994	President and CEO, Texas Systems, LLC and CEO, Texas learning systems LLC since 1999 (education companies); Dean, M.J. Neeley School of Business, Texas Christian University Business School from 1987 to 1999.	8	AZZ Incorporated
Earle A. Shields, Jr. 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1920	Trustee	Since 1994	Consultant; formerly Consultant for NASDAQ Corp. and Vice President, Merrill Lynch & Co., Inc.	8	None
Richard J. Howell 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1942	Trustee Chairman of the Audit and Compliance Committee	Since 2005 Since 2008	CPA; Adjunct Faculty at SMU Cox School of Business from 2004 to 2009; Consulting Services, since 2002; Audit Partner, Arthur Andersen LLP from 1974 to 2002.	8	Red Robin Gourmet Burgers, Inc.
Larry J. Lockwood 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1953	Trustee	Since 2013	C.R. Williams Professor of Finance, Stan Block Endowed Chair in Finance, Department of Finance, Neeley School of Business, Texas Christian University since 1994.	8	None
Interested Trustees:
J. Luther King, Jr.⁽²⁾ 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1940	Trustee, President and Chief Executive Officer	Since 1994	Chairman, President and Director, Luther King Capital Management Corporation since 1979.	8	Tyler Technologies, Inc.
Steve R. Purvis⁽²⁾ 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1964	Trustee Vice President	Since 2013 Since 2000	Principal, Luther King Capital Management since 2004, Vice President and Portfolio Manager Luther King Capital Management since 1996.	8	None

⁽¹⁾	Each Trustee holds office during the lifetime of the Trust until that individual resigns, retires or is otherwise removed or replaced.

⁽²⁾	Messrs. King and Purvis are each considered an “interested person” of the Trust (as defined in the 1940 Act) because of their affiliation with the Adviser.

Information about the Funds’ Trustees and Officers, Continued


Name, Address and Age	Position(s) Held with the Trust	Term of Office & Length of Time Served⁽¹⁾	Principal Occupation During Past Five Years
Officers:
J. Luther King, Jr.⁽²⁾ 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1940	Trustee, President and Chief Executive Officer	Since 1994	Chairman, President and Director, Luther King Capital Management Corporation since 1979.
Steven R. Purvis⁽²⁾ 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1964	Trustee Vice President	Since 2013 Since 2000	Principal, Luther King Capital Management since 2004, Vice President and Portfolio Manager, Luther King Capital Management since 1996.
Paul W. Greenwell 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1950	Vice President	Since 1996	Principal, Luther King Capital Management since 1986, Vice President and Portfolio Manager, Luther King Capital Management since 1983.
Richard Lenart 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1966	Secretary and Treasurer	Since 2006	Luther King Capital Management since 2005.
Jacob D. Smith 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1974	Chief Financial Officer Chief Compliance Officer	Since 2010 Since 2006	Chief Financial Officer since 2010, General Counsel and Chief Compliance Officer, Luther King Capital Management since 2006. Principal, Luther King Capital Management since 2013.

⁽¹⁾	Each Trustee holds office during the lifetime of the Trust until that individual resigns, retires or is otherwise removed or replaced.

⁽²⁾	Messrs. King and Purvis are each considered an “interested person” of the Trust (as defined in the 1940 Act) because of their affiliation with the Adviser.

LKCM FUNDS

PRIVACY NOTICE

Our Commitment to Your Privacy

At LKCM Funds, we are committed to safeguarding the confidentiality and privacy of nonpublic personal information about our current and former shareholders. This privacy notice describes the policies and procedures we have implemented to protect the privacy of your nonpublic personal information as well as the sources through which we may obtain nonpublic personal information about you.

How We Protect Your Nonpublic Personal Information

Protecting your nonpublic personal information is an important priority at LKCM Funds. Accordingly, we have implemented policies and procedures designed to safeguard your nonpublic personal information, such as your tax identification number, account and investment history, account numbers, account balances and nonpublic contact information, from unauthorized access. Pursuant to these policies and procedures, we maintain various physical, technological, and administrative safeguards to protect the security and confidentiality of your nonpublic personal information, and we adapt these safeguards to respond to evolving technological and other standards.

We do not disclose nonpublic personal information about you to outside firms, organizations or individuals except as authorized by you or your representatives or as required or permitted by law. We may disclose nonpublic personal information about you to nonaffiliated third parties, such as custodians, brokers, auditors, accountants, and systems and administrative service providers, in connection with the services we provide to you or on your behalf. When we provide nonpublic personal information about you to nonaffiliated third parties for these purposes, we expect them to safeguard your nonpublic personal information, use your nonpublic personal information only for the intended purposes and otherwise abide by applicable law.

How We Obtain Your Nonpublic Personal Information

We collect nonpublic personal information about you from various sources, including documents, new account applications and other information that you or your representatives, custodians, attorneys, accountants or similar parties provide to us, communications that we have with you or your representatives, custodians, attorneys, accountants or similar parties, and documents and other information related to your accounts or investment experience with us.

Please do not hesitate to contact Jacob D. Smith, our Chief Compliance Officer, if you have any questions regarding the measures we have implemented to protect the privacy of your nonpublic personal information.

U.S. Bancorp Fund Services, LLC

P.O. Box 701

Milwaukee, WI 53201-0701

LKCM FUNDS

P.O. Box 701

Milwaukee, WI 53201-0701


Officers and Trustees
J. Luther King, Jr., CFA, CIC	H. Kirk Downey	Larry J. Lockwood
Trustee, President	Chairman of the Board	Trustee

Paul W. Greenwell	Richard J. Howell	Richard Lenart
Vice President	Trustee	Secretary & Treasurer

Steven R. Purvis, CFA	Earle A. Shields, Jr.	Jacob D. Smith
Trustee, Vice President	Trustee	Chief Financial Officer
		Chief Compliance Officer
Investment Adviser
Luther King Capital Management Corporation
301 Commerce Street, Suite 1600
Fort Worth, TX 76102
Administrator, Transfer Agent, Dividend Paying Agent & Shareholder Servicing Agent
U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
Custodian
U.S. Bank, N.A.
1555 N. River Center Drive, Suite 302
Milwaukee, WI 53212
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
555 E. Wells St., Suite 1400
Milwaukee, WI 53202
Distributor
Quasar Distributors, LLC
615 E. Michigan Street
Milwaukee, WI 53202

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LKCM Aquinas Value Fund

LKCM Aquinas Growth Fund

LKCM Aquinas Small Cap Fund

Annual Report

December 31, 2014

Dear Fellow Shareholders:

We report the following performance information for the LKCM Aquinas Funds:


Funds	Inception Date		NAV@ 12/31/14		Net Expense Ratio, *			Gross Expense Ratio**			One Year Total Return Ended 12/31/14			Five Year Average Annualized Return Ended 12/31/14			Avg. Annual Total Return Since Incept.***
LKCM Aquinas Value Fund		7/11/05	$	16.87		1.50	%		1.52	%		2.73	%		12.61	%		7.29	%
Russell 1000 Value^® Index⁽¹⁾												13.45	%		15.42	%		7.33	%
LKCM Aquinas Growth Fund		7/11/05	$	17.21		1.51	%		1.59	%		1.25	%		10.91	%		5.66	%
Russell 1000 Growth^® Index⁽²⁾												13.05	%		15.81	%		8.94	%
LKCM Aquinas Small Cap Fund		7/11/05	$	7.66		1.50	%		2.25	%		-4.54	%		13.86	%		6.55	%
Russell 2000^® Index⁽³⁾												4.89	%		15.55	%		7.95	%

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 Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-423-6369. 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’ adviser, has contractually agreed to waive all or a portion of its management fee and/or reimburse the Fund to maintain designated expense ratios through April 30, 2015. This expense limitation excludes interest, taxes, brokerage commissions, indirect fees and expenses relating to investments in other investment companies, including money market funds, and extraordinary expenses. Investment performance reflects fee waivers, if any, in effect. In the absence of such waivers, total return would be reduced. Investment performance is based upon the net expense ratio.

***	On July 11, 2005, the Aquinas Funds merged into the LKCM Aquinas Funds. Due to the change in adviser and investment technique, performance is being quoted for the period after the merger.

(1)	The Russell 1000 Value^® Index is an unmanaged index which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

(2)	The Russell 1000 Growth^® Index is an unmanaged index which measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

(3)	The Russell 2000^® Index is an unmanaged index which measures the performance of the 2000 smallest companies in the Russell 3000^® Index.

Note: These indices defined above are not available for direct investment and the index performance therefore does not include expenses.

2014 Review

Bond yields fell both in the United States and abroad throughout 2014, finishing the year near annual lows in most cases. The operative phrase from the Federal Open Market Committee (FOMC) has shifted from interest rates staying low for a “considerable time” to the path of interest rates being “data dependent,” which appears to provide the Federal Reserve with necessary room to maneuver while reassuring the marketplace that it will not act prematurely. We believe the phase-out of quantitative easing by the Federal Reserve in October 2014 went much more smoothly than many anticipated, as suggested by the activity in interest rates during the year.

2015 Outlook

We believe many of the drivers of the U.S. equity market returns in 2014 are likely to remain in place for 2015, including higher GDP growth compared to 2014, low inflation, and a stable-to-improving job market. We estimate corporate earnings per share for the S&P 500 Index^® were $117 in 2014 and further estimate they may grow 7-8% in 2015. In our view, the four key tenets of earnings multiples—taxes, regulation, interest rates, and inflation—remain favorable. We remain constructive on the U.S. equity markets for 2015, but would not be surprised to see greater market volatility than 2012-2014 as financial markets wrestle with slowing global economic growth, conflicting central bank monetary policy, and volatile commodity prices.

LKCM Aquinas Value Fund

The LKCM Aquinas Value Fund returned 2.73% for the year ended December 31, 2014 as compared to the 13.45% return for the Fund’s benchmark, the Russell 1000 Value^® Index. During the year, both stock selection and sector allocation decisions detracted from the Fund’s performance relative to the benchmark. The Fund’s overweight position in the Technology sector benefited the Fund’s relative performance, but was more than offset by the Fund’s underweight positions in the Utilities and Healthcare sectors and overweight position in the Materials sector. The Fund’s underweight position in the Healthcare sector was primarily the result of the Fund’s Catholic-values investing mandate, which limits the Fund’s ability to invest in a number of companies in this sector. Stock selection in the Healthcare and Consumer Staples sectors benefited the Fund’s relative performance, but was more than offset by stock selection in the Technology, Financials and Energy sectors. We remain confident the Fund is well-positioned with a strong emphasis on companies that we view has high quality with reasonable valuations relative to their earnings growth rate, which we believe can provide an opportunity to add value for the Fund and its shareholders in the upcoming year. We continue to emphasize holdings in which we expect meaningful dividend increases or share buybacks during 2015.

LKCM Aquinas Small Cap Fund

The LKCM Aquinas Small Cap Fund declined 4.54% for the year ended December 31, 2014 as compared to the 4.89% return for the Fund’s benchmark, the Russell 2000^® Index. During the year, both stock selection and sector allocation decisions detracted from the Fund’s performance relative to the benchmark. Positive stock selection in the Energy sector was more than offset by weakness in stock selection in the Technology, Industrials, Financials and Consumer Discretionary sectors relative to the benchmark. Sector allocation decisions also detracted from the Fund’s relative performance with the Fund’s underweight position in the Utilities sector and overweight position in the Energy sector accounting for much of the shortfall. Our investment strategy for the Fund focuses on investments in what we view as higher quality companies and it had difficulty overcoming two powerful forces—“reach for yield” and focus on lower quality companies—that we believe continued to drive the markets during the year. We remain committed to our investment strategy and stock selection process for the Fund and believe we have the Fund well-positioned for the opportunities and challenges we expect the financial markets will present during the upcoming year.

LKCM Aquinas Growth Fund

The LKCM Aquinas Growth Fund advanced 1.25% for the year ended December 31, 2014 as compared to the 13.05% return of the Fund’s benchmark, the Russell 1000 Growth^® Index. During the year, both stock selection and sector allocation decisions detracted from the Fund’s performance relative to the benchmark. The Fund’s underweight position in the Materials sector benefited the Fund’s relative performance, but was offset by the Fund’s underweight position in the Healthcare sector and overweight position in the Energy sector. The Fund’s underweight position in the Healthcare sector was primarily the result of the Fund’s Catholic-values investing mandate, which limits the Fund’s ability to invest in a number of companies in this sector. Stock selection in the Energy, Financials, Technology and Industrials sectors also detracted from the Fund’s relative performance. We remain committed to our investment strategy and stock selection process for the Fund and believe we have the Fund well-positioned for the opportunities and challenges we expect the financial markets will present during the upcoming year.

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J. Luther King, Jr., CFA, CIC

January 27, 2015

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 10-15 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. 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. These risks are discussed in the Funds’ summary and statutory prospectuses. Since the Funds practice socially responsible investing within the framework provided by the United States Conference of Catholic Bishop’s socially responsible investment guidelines, the Funds may forego a profitable investment opportunity or sell a security when it may be disadvantageous to do so.

The Standard & Poor’s 500^® Index is an unmanaged capitalization-weighted index of 500 selected stocks that is generally representative of the performance of large capitalization companies in the U.S. stock market. One cannot invest directly in an index.

Earnings per share (EPS) is calculated by taking the total earnings divided by the number of shares outstanding.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer term debt securities. Stocks and bonds are not guaranteed. Bonds traditionally experience less volatility than stocks but have less growth potential. High yield bonds are subject to certain risks including market, greater price volatility, credit, liquidity, issuer, interest-rate, and inflation. Lower-rated and non-rated securities involve greater risk than higher rated securities. Stocks, investment grade bonds and high yield bonds as well as other asset classes have different risk profiles which should be considered when investing. High yield securities have greater price volatility and credit and liquidity risks (presenting a greater risk of loss to principal and interest) than other higher-rated, investment grade securities.

Must be preceded or accompanied by a prospectus.

Quasar Distributors, LLC, distributor.

PERFORMANCE:

The following information illustrates the historical performance of LKCM Aquinas Value Fund as of December 31, 2014 compared to the Fund’s benchmark and peer group indices.

An index is an unmanaged portfolio and does not trade or incur any expenses. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2014)


	Past 1 Year		Past 3 Years⁽¹⁾		Past 5 Years⁽¹⁾		Since Inception⁽¹⁾⁽²⁾
LKCM Aquinas Value Fund		2.73%		15.41%		12.61%		7.29%
Russell 1000^® Value Index		13.45%		20.89%		15.42%		7.33%
Lipper Large-Cap Value Funds Index		11.01%		19.67%		13.64%		7.07%

⁽¹⁾	Annualized.

⁽²⁾	The assets of the Aquinas Value Fund were acquired by the LKCM Aquinas Value Fund on July 11, 2005. At the time of the reorganization, the Adviser also changed from Aquinas Investment Advisers, Inc. to Luther King Capital Management Corporation.

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM AQUINAS VALUE FUND

(for the period from July 11, 2005 through December 31, 2014)

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The Russell 1000^® Value Index is an unmanaged index consisting of those Russell 1000^® companies with lower price-to-book ratios and lower forecasted growth values.

The Lipper Large-Cap Value Funds Index is an index of large cap value mutual funds tracked by Lipper, Inc.

PERFORMANCE:

The following information illustrates the historical performance of LKCM Aquinas Growth Fund as of December 31, 2014 compared to the Fund’s benchmark and peer group indices.

An index is an unmanaged portfolio and does not trade or incur any expenses. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2014)


	Past 1 Year		Past 3 Years⁽¹⁾		Past 5 Years⁽¹⁾		Since Inception⁽¹⁾⁽²⁾
LKCM Aquinas Growth Fund		1.25%		12.35%		10.91%		5.66%
Russell 1000^® Growth Index		13.05%		20.26%		15.81%		8.94%
Lipper Large-Cap Growth Funds Index		10.34%		20.09%		14.12%		7.93%

⁽¹⁾	Annualized.

⁽²⁾	The assets of the Aquinas Growth Fund were acquired by the LKCM Aquinas Growth Fund on July 11, 2005. At the time of the reorganization, the Adviser also changed from Aquinas Investment Advisers, Inc. to Luther King Capital Management Corporation.

A HYPOTHETICAL $10,000 INVESTMENT IN LKCM AQUINAS GROWTH FUND

(for the period from July 11, 2005 through December 31, 2014)

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The Russell 1000^® Growth Index consists of those Russell 1000^® companies with higher price-to-book ratios and higher forecasted growth values.

The Lipper Large-Cap Growth Funds Index is an index of large cap growth mutual funds tracked by Lipper, Inc.

PERFORMANCE:

The following information illustrates the historical performance of LKCM Aquinas Small Cap Fund as of December 31, 2014 compared to the Fund’s benchmark and peer group indices.

An index is an unmanaged portfolio and does not trade or incur any expenses. One can not invest in an unmanaged index.

AVERAGE ANNUAL TOTAL RETURN (Periods Ended December 31, 2014)


	Past 1 Year		Past 3 Years⁽¹⁾		Past 5 Years⁽¹⁾		Since Inception⁽¹⁾⁽²⁾
LKCM Aquinas Small Cap Fund		-4.54%		10.98%		13.86%		6.55%
Russell 2000^® Index		4.89%		19.21%		15.55%		7.95%
Lipper Small-Cap Core Funds Index		4.09%		17.99%		14.71%		8.40%

⁽¹⁾	Annualized.

⁽²⁾	The assets of the Aquinas Small Cap Fund were acquired by the LKCM Aquinas Small Cap Fund on July 11, 2005. At the time of the reorganization, the Adviser also changed from Aquinas Investment Advisers, Inc. to Luther King Capital Management Corporation.

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

(for the period from July 11, 2005 through December 31, 2014)

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 index of small cap core mutual funds tracked by Lipper, Inc.

LKCM Aquinas Funds Expense Example — December 31, 2014

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. 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, the Funds’ transfer agent. If you request that a redemption be made by wire transfer, currently a $15 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 Aquinas Value, Aquinas Growth and Aquinas Small Cap 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. You may use the information in this line, 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 first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLES FOR COMPARISON PURPOSES


	LKCM Aquinas Value Fund
	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 – 12/31/14
Actual	$	1,000.00	$	979.90	$	7.49
Hypothetical (5% return before expense)	$	1,000.00	$	1,017.64	$	7.63

*	Expenses are equal to the Fund’s annualized net expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.


	LKCM Aquinas Growth Fund
	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 – 12/31/14
Actual	$	1,000.00	$	1,013.50	$	7.61
Hypothetical (5% return before expense)	$	1,000.00	$	1,017.64	$	7.63

*	Expenses are equal to the Fund’s annualized net expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.


	LKCM Aquinas Small Cap Fund
	Beginning Account Value 7/1/14		Ending Account Value 12/31/14		Expenses Paid During Period* 7/1/14 – 12/31/14
Actual	$	1,000.00	$	961.70	$	7.42
Hypothetical (5% return before expense)	$	1,000.00	$	1,017.64	$	7.63

*	Expenses are equal to the Fund’s annualized net expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.

ALLOCATION OF PORTFOLIO HOLDINGS — LKCM Aquinas Funds — December 31, 2014

Percentages represent market value as a percentage of total investments.

LKCM Aquinas Value Fund

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LKCM Aquinas Small Cap Fund

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LKCM Aquinas Growth Fund

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LKCM AQUINAS VALUE FUND

SCHEDULEOF INVESTMENTS

December 31, 2014


COMMON STOCKS - 99.0%	Shares		Value
Aerospace & Defense - 2.9%
Honeywell International Inc.		15,000	$	1,498,800

Auto Components - 2.7%
The Goodyear Tire & Rubber Company		50,000		1,428,500

Banks - 12.7%
BOK Financial Corporation		17,500		1,050,700
Comerica Incorporated		25,000		1,171,000
Cullen/Frost Bankers, Inc.		15,000		1,059,600
SunTrust Banks, Inc.		40,000		1,676,000
Zions Bancorporation		60,000		1,710,600

				6,667,900

Beverages - 3.7%
The Coca-Cola Company		17,500		738,850
PepsiCo, Inc.		12,500		1,182,000

				1,920,850

Chemicals - 5.4%
FMC Corporation		24,000		1,368,720
Monsanto Company		12,500		1,493,375

				2,862,095

Computers & Peripherals - 3.5%
EMC Corporation		40,000		1,189,600
International Business Machines Corporation		4,020		644,969

				1,834,569

Construction Materials - 2.6%
Martin Marietta Materials, Inc.		12,500		1,379,000

Diversified Financials - 3.0%
JPMorgan Chase & Co.		25,000		1,564,500

Diversified Telecommunication Services - 1.5%
Verizon Communications, Inc.		17,000		795,260

Electrical Equipment & Instruments - 2.7%
Roper Industries, Inc.		9,000		1,407,150

Electronic Equipment & Instruments - 1.8%
Trimble Navigation Limited (a)		35,400		939,516

Energy Equipment & Services - 1.4%
Schlumberger Limited (b)		8,400		717,444

Food & Drug Retailing - 3.2%
CVS Caremark Corporation		17,500		1,685,425

Food Products - 3.8%
Kraft Foods Group, Inc.		15,000		939,900
Mondelez International, Inc. - Class A		29,700		1,078,852

				2,018,752

Health Care Equipment & Supplies - 2.0%
DENTSPLY International Inc.		20,000		1,065,400

Household Durables - 3.3%
Whirlpool Corporation		9,000		1,743,660


COMMON STOCKS	Shares		Value
Insurance - 6.4%
MetLife, Inc.		33,000	$	1,784,970
Prudential Financial, Inc.		17,500		1,583,050

				3,368,020

Internet Software & Services - 4.9%
Akamai Technologies, Inc. (a)		25,000		1,574,000
Sabre Corporation		50,000		1,013,500

				2,587,500

Machinery - 5.3%
Barnes Group Inc.		30,000		1,110,300
Danaher Corporation		17,500		1,499,925
Dover Corporation		2,500		179,300

				2,789,525

Multiline Retail - 4.7%
Kohl’s Corporation		18,000		1,098,720
Macy’s, Inc.		20,800		1,367,600

				2,466,320

Oil & Gas & Consumable Fuels - 7.5%
Cabot Oil & Gas Corporation		36,000		1,065,960
ConocoPhillips		11,000		759,660
Exxon Mobil Corporation		4,000		369,800
Gulfport Energy Corporation (a)		15,000		626,100
Range Resources Corporation		10,000		534,500
The Williams Companies, Inc.		13,000		584,220

				3,940,240

Paper & Forest Products - 2.5%
International Paper Company		25,000		1,339,500

Pharmaceuticals - 3.1%
AbbVie Inc.		25,000		1,636,000

Software - 4.0%
Adobe Systems Incorporated (a)		22,500		1,635,750
Citrix Systems, Inc. (a)		7,500		478,500

				2,114,250

Specialty Retail - 4.4%
The Home Depot, Inc.		10,000		1,049,700
Tiffany & Co.		12,000		1,282,320

				2,332,020

TOTAL COMMON STOCKS
(Cost $31,327,615)				52,102,196

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

LKCM AQUINAS VALUE FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


SHORT-TERM INVESTMENT - 1.4%	Shares		Value
Money Market Fund (c) - 1.4%
Federated Government Obligations Fund - Institutional Shares, 0.01%		743,745	$	743,745

TOTAL SHORT-TERM INVESTMENT
(Cost $743,745)				743,745

Total Investments - 100.4%
(Cost $32,071,360)				52,845,941
Liabilities in Excess of Other Assets - (0.4)%				(193,961	)

TOTAL NET ASSETS - 100.0%			$	52,651,980

(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.

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

LKCM AQUINAS GROWTH FUND

SCHEDULEOF INVESTMENTS

December 31, 2014


COMMON STOCKS - 100.2%	Shares		Value
Aerospace & Defense - 2.5%
Honeywell International Inc.		7,675	$	766,886

Banks - 3.5%
Comerica Incorporated		12,975		607,749
Cullen/Frost Bankers, Inc.		3,000		211,920
Texas Capital Bancshares, Inc. (a)		5,000		271,650

				1,091,319

Beverages - 1.4%
The Coca-Cola Company		10,000		422,200

Biotechnology - 1.7%
Amgen Inc.		3,275		521,675

Chemicals - 1.1%
FMC Corporation		6,000		342,180

Communications Equipment - 2.4%
QUALCOMM Incorporated		10,000		743,300

Computers & Peripherals - 6.6%
Apple Inc.		10,500		1,158,990
EMC Corporation		30,000		892,200

				2,051,190

Consumer Finance - 2.6%
American Express Company		8,750		814,100

Diversified Telecommunication Services - 1.8%
Verizon Communications, Inc.		12,275		574,225

Electrical Equipment & Instruments - 7.1%
AMETEK, Inc.		10,000		526,300
Emerson Electric Co.		12,000		740,760
Roper Industries, Inc.		6,000		938,100

				2,205,160

Electronic Equipment & Instruments - 3.7%
National Instruments Corporation		18,000		559,620
Trimble Navigation Limited (a)		22,000		583,880

				1,143,500

Energy Equipment & Services - 2.0%
Halliburton Company		6,750		265,477
Schlumberger Limited (b)		4,200		358,722

				624,199

Food & Drug Retailing - 2.9%
CVS Caremark Corporation		9,375		902,906

Food Products - 1.7%
The WhiteWave Foods Company (a)		15,125		529,224

Health Care Equipment & Supplies - 2.5%
Zimmer Holdings, Inc.		6,950		788,269

Health Care Providers & Services - 4.9%
Express Scripts Holding Co (a)		8,000		677,360
McKesson Corporation		4,000		830,320

				1,507,680


COMMON STOCKS	Shares		Value
Hotels, Restaurants & Leisure - 2.1%
Yum! Brands, Inc.		8,800	$	641,080

Household Products - 3.5%
Colgate-Palmolive Company		12,000		830,280
The Procter & Gamble Company		3,000		273,270

				1,103,550

Insurance - 2.0%
Prudential Financial, Inc.		7,000		633,220

Internet Catalog & Retail - 2.5%
Amazon.com, Inc. (a)		2,500		775,875

Internet Software & Services - 12.0%
Akamai Technologies, Inc. (a)		17,000		1,070,320
Facebook, Inc. - Class A (a)		14,000		1,092,280
Google Inc. - Class A (a)		1,000		530,660
Google Inc. - Class C (a)		1,000		526,400
Yahoo! Inc. (a)		10,000		505,100

				3,724,760

Machinery - 4.9%
Danaher Corporation		11,000		942,810
Dover Corporation		8,025		575,553

				1,518,363

Media - 1.1%
The Walt Disney Company		3,500		329,665

Oil & Gas & Consumable Fuels - 3.1%
Cabot Oil & Gas Corporation		15,000		444,150
Range Resources Corporation		10,000		534,500

				978,650

Pharmaceuticals - 3.4%
AbbVie Inc.		16,000		1,047,040

Software - 5.6%
ACI Worldwide, Inc. (a)		24,000		484,080
Citrix Systems, Inc. (a)		10,000		638,000
Microsoft Corporation		13,625		632,881

				1,754,961

Specialty Retail - 6.4%
The Home Depot, Inc.		6,000		629,820
O’Reilly Automotive, Inc. (a)		3,000		577,860
Tractor Supply Company		10,000		788,200

				1,995,880

Textiles, Apparel & Luxury Goods - 5.2%
NIKE, Inc. - Class B		6,000		576,900
V.F. Corporation		14,000		1,048,600

				1,625,500

TOTAL COMMON STOCKS
(Cost $19,987,152)				31,156,557

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

LKCM AQUINAS GROWTH FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


SHORT-TERM INVESTMENT - 0.1%	Shares		Value
Money Market Fund (c) - 0.1%
Federated Government Obligations Fund - Institutional Shares, 0.01%		17,349	$	17,349

TOTAL SHORT-TERM INVESTMENT
(Cost $17,349)				17,349

Total Investments - 100.3%
(Cost $20,004,501)				31,173,906
Liabilities in Excess of Other Assets - (0.3)%				(90,310	)

TOTAL NET ASSETS - 100.0%			$	31,083,596

(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.

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

LKCM AQUINAS SMALL CAP FUND

SCHEDULEOF INVESTMENTS

December 31, 2014


COMMON STOCKS - 100.3%	Shares		Value
Aerospace & Defense - 3.3%
Hexcel Corporation (a)		2,910	$	120,736
Teledyne Technologies Incorporated (a)		1,180		121,233

				241,969

Automobiles - 3.1%
Lithia Motors, Inc. - Class A		1,505		130,468
Winnebago Industries, Inc.		4,606		100,227

				230,695

Banks - 6.1%
BancorpSouth, Inc.		5,408		121,734
Columbia Banking System, Inc.		4,260		117,618
Hanmi Financial Corporation		4,390		95,746
Texas Capital Bancshares, Inc. (a)		2,190		118,983

				454,081

Biotechnology - 3.8%
Charles River Laboratories International, Inc. (a)		1,845		117,416
EXACT Sciences Corporation (a)		6,100		167,384

				284,800

Building Products - 0.1%
PGT, Inc. (a)		859		8,272

Chemicals - 1.1%
Globe Specialty Metals Inc.		935		16,110
PolyOne Corporation		1,760		66,722

				82,832

Commercial Services & Supplies - 3.9%
Healthcare Services Group, Inc.		3,930		121,555
Hillenbrand, Inc.		3,625		125,062
MSA Safety Incorporated		755		40,083

				286,700

Communications Equipment - 5.0%
Ciena Corporation (a)		6,385		123,933
Infinera Corporation (a)		8,235		121,219
Sonus Networks, Inc. (a)		31,795		126,226

				371,378

Construction Materials - 1.7%
Headwaters Incorporated (a)		8,555		128,239

Consumer Finance - 1.6%
PRA Group Inc (a)		2,020		117,019

Diversified Consumer Services - 1.6%
DeVry Education Group Inc.		2,510		119,150

Diversified Financials - 2.2%
HFF, Inc. - Class A		3,410		122,487
MarketAxess Holdings Inc.		615		44,102

				166,589

Electrical Equipment & Instruments - 1.6%
Franklin Electric Co., Inc.		3,215		120,659


COMMON STOCKS	Shares		Value
Electronic Equipment & Instruments - 2.1%
Belden Inc.		1,440	$	113,486
Coherent, Inc. (a)		695		42,200

				155,686

Food Products - 3.1%
Post Holdings Inc. (a)		2,795		117,083
TreeHouse Foods, Inc. (a)		1,355		115,893

				232,976

Health Care Equipment & Supplies - 7.6%
Cynosure Inc. - Class A (a)		445		12,202
DexCom Inc. (a)		2,785		153,314
Endologix, Inc. (a)		6,550		100,149
MWI Veterinary Supply, Inc. (a)		800		135,928
The Spectranetics Corporation (a)		4,758		164,532

				566,125

Health Care Providers & Services - 4.1%
Acadia Healthcare Company, Inc. (a)		2,215		135,580
Team Health Holdings, Inc. (a)		2,940		169,139

				304,719

Hotels, Restaurants & Leisure - 3.8%
Belmond Ltd. - Class A (a) (b)		3,335		41,254
Brinker International, Inc.		2,060		120,902
La Quinta Holdings Inc (a)		5,390		118,903

				281,059

Internet & Catalog Retail - 1.4%
HSN, Inc.		1,375		104,500

Internet Software & Services - 4.9%
Euronet Worldwide, Inc. (a)		2,475		135,877
LogMeIn, Inc. (a)		2,330		114,962
SPS Commerce, Inc. (a)		2,035		115,242

				366,081

IT Consulting & Services - 1.6%
Acxiom Corporation (a)		5,920		119,999

Leisure Equipment & Products - 1.4%
Pool Corporation		1,575		99,918

Machinery - 3.8%
Barnes Group Inc.		3,345		123,798
CLARCOR Inc.		1,465		97,628
The Manitowoc Company, Inc.		2,785		61,549

				282,975

Media - 1.7%
The E.W. Scripps Company - Class A (a)		5,750		128,513

Oil & Gas & Consumable Fuels - 2.4%
Diamondback Energy Inc (a)		145		8,668
Memorial Resource Development Corp. (a)		855		15,416
Synergy Resources Corporation (a)		11,995		150,417

				174,501

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

LKCM AQUINAS SMALL CAP FUND

SCHEDULEOF INVESTMENTS, CONTINUED

December 31, 2014


COMMON STOCKS	Shares		Value
Pharmaceuticals - 2.5%
Akorn, Inc. (a)		5,181	$	187,552

Real Estate Investment Trusts - 7.9%
Kennedy-Wilson Holdings, Inc.		4,665		118,025
Pebblebrook Hotel Trust		2,635		120,235
Sovran Self Storage, Inc.		1,355		118,183
Stag Industrial, Inc.		4,695		115,027
Strategic Hotels & Resorts, Inc. (a)		8,820		116,689

				588,159

Road & Rail - 1.6%
Landstar System, Inc.		1,575		114,235

Semiconductor Equipment & Products - 1.5%
Rambus Inc. (a)		10,290		114,116

Software - 5.4%
ACI Worldwide, Inc. (a)		6,120		123,440
Fortinet Inc. (a)		4,425		135,670
Interactive Intelligence Group, Inc. (a)		1,095		52,451
Manhattan Associates, Inc. (a)		2,140		87,141

				398,702

Specialty Retail - 0.1%
Pier 1 Imports, Inc.		495		7,623

Textiles, Apparel & Luxury Goods - 5.2%
Deckers Outdoor Corporation (a)		1,275		116,076
Kate Spade & Company (a)		2,130		68,181
Oxford Industries, Inc.		2,065		114,009
Skechers U.S.A., Inc. - Class A (a)		1,570		86,742

				385,008

Thrifts & Mortgage Finance - 1.6%
Home Bancshares Inc.		3,765		121,082

Trading Companies & Distributors - 1.5%
Aceto Corporation		4,915		106,655

TOTAL COMMON STOCKS
(Cost $5,856,907)				7,452,567


SHORT-TERM INVESTMENT - 0.5%
Money Market Fund (c) - 0.5%
Federated Government Obligations Fund - Institutional Shares, 0.01%		37,696		37,696

TOTAL SHORT-TERM INVESTMENT
(Cost $37,696)				37,696

Total Investments - 100.8%
(Cost $5,894,603)				7,490,263
Liabilities in Excess of Other Assets - (0.8)%				(61,354	)

TOTAL NET ASSETS - 100.0%			$	7,428,909

(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.

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

STATEMENTOF ASSETSAND LIABILITIES

December 31, 2014


	LKCM Aquinas Value Fund		LKCM Aquinas Growth Fund		LKCM Aquinas Small Cap Fund

ASSETS:
Investments, at value*	$	52,845,941	$	31,173,906	$	7,490,263
Receivable for Fund shares sold		78,613		2,552		249
Dividends and interest receivable		51,592		17,922		3,704
Other assets		12,949		11,205		11,411

Total assets		52,989,095		31,205,585		7,505,627

LIABILITIES:
Payable for investment advisory fees (Note B)		126,896		57,195		817
Payable for Fund shares redeemed		106,654		40		41,450
Payable for distribution expense (Note B)		69,671		35,361		10,118
Payable for accounting and transfer agent fees and expenses		12,180		11,370		8,229
Payable for administrative fees		6,817		5,471		3,601
Accrued expenses and other liabilities		14,897		12,552		12,503

Total liabilities		337,115		121,989		76,718

Net Assets	$	52,651,980	$	31,083,596	$	7,428,909

Net Assets Consist of:
Paid in capital	$	31,225,173	$	19,767,945	$	4,731,309
Accumulated net investment income (loss)		11,036		—		—
Accumulated net realized gain on investments		641,190		146,246		1,101,940
Net unrealized appreciation on investments		20,774,581		11,169,405		1,595,660

Net Assets	$	52,651,980	$	31,083,596	$	7,428,909

Net Assets	$	52,651,980	$	31,083,596	$	7,428,909
Shares of beneficial interest outstanding (unlimited shares of no par value authorized)		3,121,255		1,806,252		969,624
Net asset value per share (offering and redemption price)	$	16.87	$	17.21	$	7.66


* Cost of Investments	$	32,071,360	$	20,004,501	$	5,894,603

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

STATEMENTOF OPERATIONS

For the Year Ended December 31, 2014


	LKCM Aquinas Value Fund			LKCM Aquinas Growth Fund			LKCM Aquinas Small Cap Fund

Investment Income:
Dividends*	$	1,439,432		$	405,588		$	94,316
Interest		123			79			50

Total income		1,439,555			405,667			94,366


Expenses:
Investment advisory fees (Note B)		530,428			335,983			132,630
Distribution expense (Note B)		147,341			93,329			33,158
Accounting and transfer agent fees and expenses		70,779			66,228			45,156
Administrative fees		53,706			35,572			23,110
Federal and state registration		26,246			24,875			23,612
Reports to shareholders		12,707			10,331			5,046
Professional fees		12,352			9,466			5,844
Trustees’ fees		7,776			5,737			1,902
Custody fees and expenses		6,708			5,093			27,585
Other		12,545			9,022			3,062

Total expenses		880,588			595,636			301,105
Less, expense waiver and/or reimbursement (Note B)		—			(35,664	)		(102,159	)

Net expenses		880,588			559,972			198,946

Net investment income (loss)		558,967			(154,305	)		(104,580	)


Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments		4,786,797			6,691,524			1,754,393
Net change in unrealized appreciation/depreciation on investments		(3,575,491	)		(6,149,001	)		(2,448,267	)


Net Realized and Unrealized Gain (Loss) on Investments		1,211,306			542,523			(693,874	)


Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,770,273		$	388,218		$	(798,454	)


* Net of foreign taxes withheld	$	—		$	—		$	23

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

STATEMENTSOF CHANGESIN NET ASSETS


	LKCM Aquinas Value Fund						LKCM Aquinas Growth Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2014			Year Ended December 31, 2013
Operations:
Net investment income (loss)	$	558,967		$	123,340		$	(154,305	)	$	(240,022	)
Net realized gain on investments		4,786,797			2,468,837			6,691,524			3,706,417
Net change in unrealized appreciation/depreciation on investments		(3,575,491	)		12,541,076			(6,149,001	)		6,003,811

Net increase in net assets resulting from operations		1,770,273			15,133,253			388,218			9,470,206


Dividends and Distributions to Shareholders:
Net investment income		(547,931	)		(131,454	)		—			—
Net realized gain on investments		(4,148,241	)		(2,858,568	)		(6,673,458	)		(3,854,604	)

		(4,696,172	)		(2,990,022	)		(6,673,458	)		(3,854,604	)


Net increase (decrease) in net assets resulting from Fund share transactions (Note C)		(3,482,797	)		15,560			(6,567,812	)		3,005,783


Total increase (decrease) in net assets		(6,408,696	)		12,158,791			(12,853,052	)		8,621,385

Net Assets:
Beginning of period		59,060,676			46,901,885			43,936,648			35,315,263

End of period*	$	52,651,980		$	59,060,676		$	31,083,596		$	43,936,648


* Including accumulated net investment income of	$	11,036		$	—		$	—		$	—


	LKCM Aquinas Small Cap Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013
Operations:
Net investment loss	$	(104,580	)	$	(106,330	)
Net realized gain on investments		1,754,393			1,044,718
Net change in unrealized appreciation/depreciation on investments		(2,448,267	)		2,923,892

Net increase (decrease) in net assets resulting from operations		(798,454	)		3,862,280


Dividends and Distributions to Shareholders:
Net realized gain on investments		(1,153,966	)		(498,077	)


Net decrease in net assets resulting from Fund share transactions (Note C)		(5,292,103	)		(374,684	)


Total increase (decrease) in net assets		(7,244,523	)		2,989,519

Net Assets:
Beginning of period		14,673,432			11,683,913

End of period	$	7,428,909		$	14,673,432

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

FINANCIAL HIGHLIGHTS

SELECTED DATAFOR EACH SHAREOF CAPITAL STOCK OUTSTANDING


	LKCM Aquinas Value Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Net Asset Value – Beginning of Period	$	17.99		$	14.18		$	12.72		$	12.68		$	10.82

Net investment income		0.17	⁽¹⁾		0.04			0.07			0.02			0.00	⁽²⁾
Net realized and unrealized gain on investments		0.34			4.72			1.46			0.04			1.87

Total from investment operations		0.51			4.76			1.53			0.06			1.87

Dividends from net investment income		(0.19	)		(0.04	)		(0.07	)		(0.02	)		(0.01	)
Distributions from net realized gains		(1.44	)		(0.91	)		—			—			—

Total dividends and distributions		(1.63	)		(0.95	)		(0.07	)		(0.02	)		(0.01	)

Net Asset Value – End of Period	$	16.87		$	17.99		$	14.18		$	12.72		$	12.68

Total Return		2.73%			33.60%			12.01%			0.46%			17.25%

Ratios and Supplemental Data:
Net assets, end of period (thousands)	$	52,652		$	59,061		$	46,902		$	42,056		$	38,354
Ratio of expenses to average net assets:
Before expense waiver and/or reimbursement		1.49%			1.52%			1.54%			1.55%			1.57%
After expense waiver and/or reimbursement		1.49%			1.50%			1.50%			1.50%			1.50%
Ratio of net investment income (loss) to average net assets:
Before expense waiver and/or reimbursement		0.95%			0.21%			0.44%			0.11%			(0.06)%
After expense waiver and/or reimbursement		0.95%			0.23%			0.48%			0.16%			0.01%
Portfolio turnover rate		23%			9%			28%			29%			31%

⁽¹⁾	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.

⁽²⁾	Amount is less than $0.005.


	LKCM Aquinas Growth Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Net Asset Value – Beginning of Period	$	21.44		$	18.53		$	16.86		$	16.61		$	14.25

Net investment loss		(0.09	)⁽¹⁾		(0.13	)⁽²⁾		(0.07	)⁽¹⁾		(0.10	)⁽¹⁾		(0.08	)⁽¹⁾
Net realized and unrealized gain on investments		0.43			5.07			1.84			0.35			2.44

Total from investment operations		0.34			4.94			1.77			0.25			2.36

Distributions from net realized gains		(4.57	)		(2.03	)		(0.10	)		—			—

Net Asset Value – End of Period	$	17.21		$	21.44		$	18.53		$	16.86		$	16.61

Total Return		1.25%			26.74%			10.52%			1.51%			16.56%

Ratios and Supplemental Data:
Net assets, end of period (thousands)	$	31,084		$	43,937		$	35,315		$	33,698		$	31,099
Ratio of expenses to average net assets:
Before expense waiver and/or reimbursement		1.60%			1.58%			1.58%			1.60%			1.63%
After expense waiver and/or reimbursement		1.50%			1.50%			1.50%			1.50%			1.50%
Ratio of net investment loss to average net assets:
Before expense waiver and/or reimbursement		(0.51)%			(0.69)%			(0.44)%			(0.71)%			(0.65)%
After expense waiver and/or reimbursement		(0.41)%			(0.61)%			(0.36)%			(0.61)%			(0.52)%
Portfolio turnover rate		30%			44%			42%			50%			46%

⁽¹⁾	Net investment loss per share is calculated using the ending balance of accumulated net investment loss prior to considerations of adjustments for permanent book and tax differences.

⁽²⁾	Net investment loss per share represents net investment loss divided by the average shares outstanding throughout the period.

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

FINANCIAL HIGHLIGHTS

SELECTED DATAFOR EACH SHAREOF CAPITAL STOCK OUTSTANDING


	LKCM Aquinas Small Cap Fund

	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Net Asset Value – Beginning of Period	$	9.39		$	7.34		$	7.35		$	7.07		$	5.25

Net investment loss		(0.07	)⁽¹⁾		(0.07	)⁽²⁾		(0.00	)^(2) (3)		(0.06	)⁽²⁾		(0.05	)⁽²⁾
Net realized and unrealized gain (loss) on investments		(0.33	)		2.45			0.59			0.34			1.87

Total from investment operations		(0.40	)		2.38			0.59			0.28			1.82

Distributions from net realized gains		(1.33	)		(0.33	)		(0.60	)		—			—

Net Asset Value – End of Period	$	7.66		$	9.39		$	7.34		$	7.35		$	7.07

Total Return		-4.54%			32.41%			8.16%			3.96%			34.67%

Ratios and Supplemental Data:
Net assets, end of period (thousands)	$	7,429		$	14,673		$	11,684		$	11,037		$	6,505
Ratio of expenses to average net assets:
Before expense waiver and/or reimbursement		2.27%			2.25%			2.32%			2.44%			3.26%
After expense waiver and/or reimbursement		1.50%			1.50%			1.50%			1.50%			1.50%
Ratio of net investment loss to average net assets:
Before expense waiver and/or reimbursement		(1.55)%			(1.54)%			(0.84)%			(1.81)%			(2.70)%
After expense waiver and/or reimbursement		(0.78)%			(0.79)%			(0.02)%			(0.87)%			(0.94)%
Portfolio turnover rate		66%			60%			82%			70%			84%

⁽¹⁾	Net investment loss per share represents net investment loss divided by the average shares outstanding throughout the period.

⁽²⁾	Net investment loss per share is calculated using the ending balance of accumulated net investment loss prior to considerations of adjustments for permanent book and tax differences.

⁽³⁾	Less than $(0.005).

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

LKCM FUNDS

NOTESTOTHE FINANCIAL STATEMENTS

The LKCM Aquinas Value Fund seeks to maximize long-term capital appreciation, while incorporating Catholic values investing principles in the investment process. The LKCM Aquinas Value Fund seeks to achieve its investment objective by investing under normal circumstances in equity securities of companies that Luther King Capital Management Corporation (the “Adviser”) believes to be undervalued relative to a company’s earnings. The LKCM Aquinas Growth Fund seeks to maximize long-term capital appreciation, while incorporating Catholic values investing principles in the investment process. The LKCM Aquinas Growth Fund seeks to achieve its investment objective by investing under normal circumstances in equity securities of companies that the Adviser believes generally have above-average growth in revenue and/or earnings, above-average returns on shareholders’ equity, and/or potential for above-average capital appreciation. The LKCM Aquinas Small Cap Fund seeks to maximize long-term capital appreciation, while incorporating Catholic values investing principles in the investment process. The LKCM Aquinas Small Cap Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its net assets in equity securities of smaller companies (those with market capitalizations at the time of investment between $600 million and $4.5 billion) that the Adviser believes are likely to have above-average growth in revenue and/or earnings and potential for above-average capital appreciation.

The LKCM Aquinas Funds practice socially responsible investing within the framework provided by the United States Conference of Catholic Bishops’ Socially Responsible Investing Guidelines (the “Guidelines”). Each Fund’s investment approach incorporates the Guidelines through a combination of screening portfolio companies based on criteria set forth in the Guidelines, dialogue with companies whose policies and practices may conflict with the Guidelines, and/or potentially excluding from each Fund’s portfolio the securities of those companies that are unwilling to alter their policies and practices over a reasonable period of time. The Adviser monitors companies selected for the Funds for policies on various issues contemplated by the Guidelines. If a Fund invests in a company whose policies and practices are inconsistent with the Guidelines, the Adviser may attempt to influence the company, sell the company’s securities or otherwise exclude future investments in such company.

1. Security Valuation: Securities listed or traded on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price, taken from the exchange where the security is primarily traded. Nasdaq National Market securities are valued at the Nasdaq Official Closing Price (“NOCP”). Unlisted U.S. securities and listed U.S. securities not traded on the valuation date are valued at the mean of the most recent quoted bid and asked price. Securities listed on a foreign exchange for which market quotations are readily available are valued at the last quoted sales price available before the time when assets are valued. Debt securities are normally valued at the mean of bid and ask price and/or by using a combination of broker quotes or matrix evaluations provided by an independent pricing service. Other assets and securities for which no market or broker quotations or matrix evaluations are readily available (including restricted securities) are valued in good faith at fair value using guidelines approved by the Board of Trustees. The Board has adopted specific guidelines and procedures for valuing portfolio securities and delegated their implementation to the Adviser. The guidelines and procedures authorize the Adviser to make all determinations regarding the fair value of a portfolio security and to report such determinations to the Board of Trustees. The Funds may also use independent pricing services to assist in pricing portfolio securities.


Level 1	–	Quoted unadjusted prices for identical instruments in active markets to which the Trust has access at the date of measurement.
Level 2	–	Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.
Level 3	–	Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Trust’s own assumptions that market participants would use to price the asset or liability based on the best available information.


LKCM Aquinas Value Fund
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	52,102,196	$	—	$	—	$	52,102,196
Money Market Fund		743,745		—		—		743,745

Total Investments*	$	52,845,941	$	—	$	—	$	52,845,941


LKCM Aquinas Growth Fund
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	31,156,557	$	—	$	—	$	31,156,557
Money Market Fund		17,349		—		—		17,349

Total Investments*	$	31,173,906	$	—	$	—	$	31,173,906


LKCM Aquinas Small Cap Fund
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	7,452,567	$	—	$	—	$	7,452,567
Money Market Fund		37,696		—		—		37,696

Total Investments*	$	7,490,263	$	—	$	—	$	7,490,263

Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments.

There were no transfers into or out of Level 1, Level 2 or Level 3 fair value measurements during the reporting period.

3. Distributions to Shareholders: The LKCM Aquinas Value, LKCM Aquinas Growth and LKCM Aquinas Small Cap Funds generally intend to pay dividends and net capital gain distributions, if any, at least on an annual basis.

8. Other: Security and shareholder transactions are recorded on the trade date. Realized gains and losses on sales of investments are calculated on the identified cost basis. Dividend income and dividends and distributions to shareholders are recorded on the ex-dividend date. Interest income is recognized on the accrual basis. All discounts and premiums are amortized based on the effective interest method for tax and financial reporting purposes.

Accordingly, at December 31, 2014, reclassifications were recorded as follows:


	LKCM Aquinas Value Fund		LKCM Aquinas Growth Fund			LKCM Aquinas Small Cap Fund
Accumulated net investment income		$—		$154,305			$104,580
Paid in capital		—		(154,305	)		(104,580	)

B. Investment Advisory and Other Agreements: Luther King Capital Management Corporation (the “Adviser”) serves as the investment adviser to the Funds under an Investment Advisory Agreement (the “Agreement”). The Adviser receives a fee, computed daily and payable quarterly, at the annual rates presented below as applied to each Fund’s average daily net assets. The Adviser has contractually agreed to waive all or a portion of its management fee and/or reimburse the Funds through April 30, 2015 in order to limit each Fund’s operating expenses to the annual cap rates identified below. This expense limitation excludes interest, taxes, brokerage commissions, indirect fees and expenses relating to investments in other investment companies, including money market funds, and extraordinary expenses. For the year ended December 31, 2014, the Adviser waived the following management fees to meet its expense cap obligations:


	LKCM Aquinas Value Fund		LKCM Aquinas Growth Fund		LKCM Aquinas Small Cap Fund
Annual Advisory Rate		0.90%		0.90%		1.00%
Annual Cap on Expenses		1.50%		1.50%		1.50%
Fees Waived in 2014		$—		$35,664		$102,159

U.S. Bancorp Fund Services, LLC serves as transfer agent and administrator for the Trust and serves as accounting services agent for the Funds. U.S. Bank, N.A. serves as custodian for the Funds.

Distribution services are performed pursuant to a distribution contract with Quasar Distributors, LLC, the Trust’s principal underwriter.

The LKCM Funds have adopted a Rule 12b-1 plan for the LKCM Aquinas Value, LKCM Aquinas Growth and LKCM Aquinas Small Cap Funds, under which each Fund may pay up to 1.00% of its average daily net assets for distribution and other services. However, the Board of Trustees has currently only authorized a fee of 0.25% of the average daily net assets for the LKCM Aquinas Value, LKCM Aquinas Growth and LKCM Aquinas Small Cap Funds. For the year ended December 31, 2014, fees incurred by the LKCM Aquinas Value, LKCM Aquinas Growth and LKCM Aquinas Small Cap Funds pursuant to the 12b-1 Plan were $147,341, $93,329, and $33,158, respectively.

C. Fund Shares: At December 31, 2014, there was an unlimited number of shares of beneficial interest, no par value, authorized. The following table summarizes the activity in shares of each Fund:


LKCM Aquinas Value Fund
	Year Ended December 31, 2014						Year Ended December 31, 2013
	Shares			Amount			Shares			Amount
Shares sold		481,234		$	8,649,355			488,234		$	8,240,129
Shares issued to shareholders in reinvestment of distributions		251,947			4,303,201			137,289			2,456,110
Shares redeemed		(895,608	)		(16,435,642	)		(648,635	)		(10,681,106	)
Redemption fee					289						427

Net increase (decrease)		(162,427	)	$	(3,482,797	)		(23,112	)	$	15,560

Shares Outstanding:
Beginning of period		3,283,682						3,306,794

End of period		3,121,255						3,283,682


LKCM Aquinas Growth Fund
	Year Ended December 31, 2014						Year Ended December 31, 2013
	Shares			Amount			Shares			Amount
Shares sold		141,239		$	2,972,887			300,220		$	6,243,697
Shares issued to shareholders in reinvestment of distributions		353,769			6,183,269			170,134			3,632,369
Shares redeemed		(737,779	)		(15,724,066	)		(326,763	)		(6,871,397	)
Redemption fee					98						1,114

Net increase (decrease)		(242,771	)	$	(6,567,812	)		143,591		$	3,005,783

Shares Outstanding:
Beginning of period		2,049,023						1,905,432

End of period		1,806,252						2,049,023


LKCM Aquinas Small Cap Fund
	Year Ended December 31, 2014						Year Ended December 31, 2013
	Shares			Amount			Shares			Amount
Shares sold		238,715		$	2,172,452			481,118		$	3,995,065
Shares issued to shareholders in reinvestment of distributions		135,998			1,060,787			49,791			467,039
Shares redeemed		(967,697	)		(8,525,990	)		(559,805	)		(4,837,281	)
Redemption fee					648						493

Net decrease		(592,984	)	$	(5,292,103	)		(28,896	)	$	(374,684	)

Shares Outstanding:
Beginning of period		1,562,608						1,591,504

End of period		969,624						1,562,608

D. Security Transactions: Purchases and sales of investment securities, other than short-term investments, for the year ended December 31, 2014 were as follows:


	Purchases				Sales
	U.S. Government		Other		U.S. Government		Other
LKCM Aquinas Value Fund	$	—	$	12,998,697	$	—	$	20,619,406
LKCM Aquinas Growth Fund		—		10,753,775		—		23,748,594
LKCM Aquinas Small Cap Fund		—		8,324,680		—		14,574,029

E. Tax Information: At December 31, 2014, the components of accumulated earnings (losses) on a tax basis were as follows:


	LKCM Aquinas Value Fund			LKCM Aquinas Growth Fund			LKCM Aquinas Small Cap Fund
Cost of Investments	$	32,071,360		$	20,004,501		$	5,898,681

Gross Unrealized Appreciation	$	20,961,357		$	11,577,577		$	1,672,433
Gross Unrealized Depreciation		(186,776	)		(408,172	)		(80,851	)

Net Unrealized Appreciation	$	20,774,581		$	11,169,405		$	1,591,582

Undistributed Ordinary Income	$	11,036		$	—		$	—
Undistributed Long-Term Capital Gain		641,190			146,246			1,106,018

Total Distributable Earnings	$	652,226		$	146,246		$	1,106,018

Total Accumulated Gains	$	21,426,807		$	11,315,651		$	2,697,600

The difference between book-basis and tax-basis unrealized appreciation, if any, is attributable primarily to the tax deferral of losses on wash sales.

To the extent the Funds realize future net capital gains, taxable distributions will be reduced by any unused capital loss carryforwards as permitted by the Internal Revenue Code. The Funds currently have no unused capital loss carryforwards.

The tax components of dividends paid during the periods shown below were as follows:


	Year Ended December 31, 2014				Year Ended December 31, 2013
	Ordinary Income		Long-Term Capital Gains		Ordinary Income		Long-Term Capital Gains
LKCM Aquinas Value Fund	$	550,565	$	4,145,607	$	507,623	$	2,482,399
LKCM Aquinas Growth Fund		—		6,673,458		—		3,854,604
LKCM Aquinas Small Cap Fund		—		1,153,966		—		498,077

REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of LKCM Funds:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of LKCM Aquinas Funds (the “Funds”) comprising the LKCM Aquinas Value Fund, LKCM Aquinas Growth Fund, and LKCM Aquinas Small Cap Fund as of December 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the portfolios constituting the LKCM Aquinas Funds as of December 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

LOGO

Milwaukee, Wisconsin

February 27, 2015

LKCM FUNDS

ADDITIONAL INFORMATION

December 31, 2014

Availability of Proxy Voting Information: A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities, as well as the proxy voting record, is available without charge, upon request, by calling toll-free 1-800-423-6369 or on the SEC website at http://www.sec.gov. The actual voting records relating to portfolio securities during the twelve month periods ended June 30 (as filed with the SEC on Form N-PX) are available without charge, upon request, by calling the Funds toll free at 1-800-423-6369 or by accessing the SEC’s website at www.sec.gov.

Availability of Quarterly Portfolio Schedule: The Funds’ are required to file complete schedules of portfolio holdings with the SEC for the first and third fiscal quarters on Form N-Q. Once filed, the Funds’ Form N-Q is available without charge upon request on the SEC’s website (http://www.sec.gov) and may be available by calling 1-800-423-6369. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating fee to the SEC’s Public Reference Room, Washington, DC 20549; or (iii) sending your request electronically to publicinfosec.gov.

Information about the Funds’ Trustees and Officers:


Name, Address and Age	Position(s) Held with the Trust	Term of Office & Length of Time Served⁽¹⁾	Principal Occupation During Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Directorships Held by Trustee
Disinterested Trustees:
H. Kirk Downey 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1942	Chairman of the Board of Trustees Trustee	Since 2005 Since 1994	President and CEO, Texas Systems, LLC and CEO, Texas learning systems LLC since 1999 (education companies); Dean, M.J. Neeley School of Business, Texas Christian University Business School from 1987 to 1999.	8	AZZ Incorporated
Earle A. Shields, Jr. 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1920	Trustee	Since 1994	Consultant; formerly Consultant for NASDAQ Corp. and Vice President, Merrill Lynch & Co., Inc.	8	None
Richard J. Howell 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1942	Trustee Chairman of the Audit and Compliance Committee	Since 2005 Since 2008	CPA; Adjunct Faculty at SMU Cox School of Business from 2004 to 2009; Consulting Services, since 2002; Audit Partner, Arthur Andersen LLP from 1974 to 2002.	8	Red Robin Gourmet Burgers, Inc.
Larry J. Lockwood 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1953	Trustee	Since 2013	C.R. Williams Professor of Finance, Stan Block Endowed Chair in Finance, Department of Finance, Neeley School of Business, Texas Christian University since 1994.	8	None
Interested Trustees:
J. Luther King, Jr.⁽²⁾ 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1940	Trustee, President and Chief Executive Officer	Since 1994	Chairman, President and Director, Luther King Capital Management Corporation since 1979.	8	Tyler Technologies, Inc.
Steve R. Purvis⁽²⁾ 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1964	Trustee Vice President	Since 2013 Since 2000	Principal, Luther King Capital Management since 2004, Vice President and Portfolio Manager, Luther King Capital Management since 1996.	8	None

⁽¹⁾	Each Trustee holds office during the lifetime of the Trust until that individual resigns, retires or is otherwise removed or replaced.

⁽²⁾	Messrs. King and Purvis are each considered an “interested person” of the Trust (as defined in the 1940 Act) because of their affiliation with the Adviser.

Information about the Funds’ Trustees and Officers, Continued


Name, Address and Age	Position(s) Held with the Trust	Term of Office & Length of Time Served⁽¹⁾	Principal Occupation During Past Five Years
Officers:
J. Luther King, Jr.⁽²⁾ 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1940	Trustee, President and Chief Executive Officer	Since 1994	Chairman, President and Director, Luther King Capital Management Corporation since 1979.
Steven R. Purvis⁽²⁾ 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1964	Trustee Vice President	Since 2013 Since 2000	Principal, Luther King Capital Management since 2004, Vice President and Portfolio Manager, Luther King Capital Management since 1996.
Paul W. Greenwell 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1950	Vice President	Since 1996	Principal, Luther King Capital Management since 1986, Vice President and Portfolio Manager, Luther King Capital Management since 1983.
Richard Lenart 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1966	Secretary and Treasurer	Since 2006	Luther King Capital Management since 2005.
Jacob D. Smith 301 Commerce Street Suite 1600 Fort Worth, TX 76102 Year of Birth: 1974	Chief Financial Officer Chief Compliance Officer	Since 2010 Since 2006	Chief Financial Officer since 2010, General Counsel and Chief Compliance Officer, Luther King Capital Management since 2006. Principal, Luther King Capital Management since 2013.

⁽¹⁾	Each Trustee holds office during the lifetime of the Trust until that individual resigns, retires or is otherwise removed or replaced.

⁽²⁾	Messrs. King and Purvis are each considered an “interested person” of the Trust (as defined in the 1940 Act) because of their affiliation with the Adviser.

LKCM FUNDS

PRIVACY NOTICE

Our Commitment to Your Privacy

How We Protect Your Nonpublic Personal Information

How We Obtain Your Nonpublic Personal Information

U.S. Bancorp Fund Services, LLC

P.O. Box 701

Milwaukee, WI 53201-0701

LKCM FUNDS

P.O. Box 701

Milwaukee, WI 53201-0701


Officers and Trustees
J. Luther King, Jr., CFA, CIC	H. Kirk Downey	Larry J. Lockwood
Trustee, President	Chairman of the Board	Trustee

Paul W. Greenwell	Richard J. Howell	Richard Lenart
Vice President	Trustee	Secretary & Treasurer

Steven R. Purvis, CFA	Earle A. Shields, Jr.	Jacob D. Smith
Trustee, Vice President	Trustee	Chief Financial Officer
		Chief Compliance Officer
Investment Adviser
Luther King Capital Management Corporation
301 Commerce Street, Suite 1600
Fort Worth, TX 76102
Administrator, Transfer Agent, Dividend Paying Agent & Shareholder Servicing Agent
U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
Custodian
U.S. Bank, N.A.
1555 N. River Center Drive, Suite 302
Milwaukee, WI 53212
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
555 E. Wells St., Suite 1400
Milwaukee, WI 53202
Distributor
Quasar Distributors, LLC
615 E. Michigan Street
Milwaukee, WI 53202

Item 2. Code of Ethics.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.

A copy of the registrant’s Code of Ethics is filed herewith.

Item 3. Audit Committee Financial Expert.

The registrant’s board of trustees has determined that there is at least one audit committee financial expert serving on its audit committee. Richard J. Howell is the “audit committee financial expert” and is considered to be “independent” as each term is defined in Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. The following table details the aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.


	FYE 12/31/2014		FYE 12/31/2013
Audit Fees	$	147,000	$	135,800
Audit-Related Fees	$	0	$	7,800
Tax Fees	$	30,625	$	29,725
All Other Fees	$	0	$	0

The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the registrant, including services provided to any entity affiliated with the registrant.

The percentage of fees billed by Deloitte & Touche LLP applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:


	FYE 12/31/2014			FYE 12/31/2013
Audit-Related Fees		0	%		0	%
Tax Fees		0	%		0	%
All Other Fees		0	%		0	%

All of the principal accountant’s hours spent on auditing the registrant’s financial statements were attributed to work performed by full-time permanent employees of the principal accountant. The following table indicates the non-audit fees billed or expected to be billed by the registrant’s accountant for services to the registrant and to the registrant’s investment adviser (including any entity controlling, controlled by, or under common control with the adviser) for the last two years. The audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser is compatible with maintaining the principal accountant’s independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant’s independence.


Non-Audit Related Fees	FYE 12/31/2014		FYE 12/31/2013
Registrant	$	30,625	$	29,725
Registrant’s Investment Adviser	$	0	$	4,740

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Investments.

(a)

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

(b)

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

Item 11. Controls and Procedures.

(a) The registrant’s Chief Executive Officer and Chief Financial Officer have reviewed the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the registrant in reports that it files or submits on Form N-CSR is accumulated and communicated to the registrant’s management, including its principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.


(a)		(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Filed herewith.

		(2) A separate certification for each principal executive and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. (3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.

(b)		Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant) LKCM Funds

By (Signature and Title)		/s/ Luther King
		J. Luther King, Jr., President

Date 3-3-15

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)		/s/ Luther King
		J. Luther King, Jr., President

Date 3-3-15


By (Signature and Title)		/s/ Jacob D. Smith
		Jacob D. Smith, Chief Financial Officer

Date 3-3-15

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