(PUB) Morningstar FundInvestor

4

Data through January 31, 2014 LKCM Equity Instl

Ticker

Status Yield Total Assets

Mstar Category

LKEQX Open

0.6% $329 mil

Large Growth

Morningstar Analyst Rating 02-03-14

Investment Style Equity Stock %

Historical Profile Return Risk Rating Average Below Avg Above Avg

99% 99% 100% 94% 92% 97% 89% 91%

„

Manager Change Partial Manager Change

14.0 18.0 22.0 26.0

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Positive

∞ ∞ ∞ ∞ ∞

Investment Values of Fund Investment Values of S&P 500

People Parent Price

10.0

Performance Quartile (within Category) History

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 01-14

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

12.24 23.38 -5.30 -6.37

13.09 7.88 -3.00 1.58 0.93 6.95

13.30 4.80 -0.11 -0.46 0.95 3.85

14.43 12.65 -3.14

15.38

10.33

13.02 27.01

15.18 17.77

15.34

17.62 15.69 -0.31

22.44 30.74 -1.65 -2.74

21.71 -3.25 0.21 -0.40 0.00 -3.25

NAV

-31.80 10.96

3.30 1.19 0.66 0.64 2.66 0.10 0.24 0.80 0.73 12

Total Return %

5.47 -0.85 1.11

5.20

0.55

2.71 1.06 0.59

+/-S&P 500

3.58 1.06

-10.20 6.64

0.43 0.75

+/-Russ 1000Gr Income Return % Capital Return %

0.73

1.02

0.98

0.69

22.65

11.59

-32.82 9.85

26.03

17.18

14.94

30.05

81

78

59

75

13

10

50

10

43

76

72

Total Rtn % Rank Cat

Pillar Spectrum Positive ∞

0.07 0.00 0.80 0.71

0.11 0.00 0.80 0.92

0.12 0.30 0.80 0.90

0.14 0.41 0.80 0.97

0.16 0.47 0.80 1.03

0.16 0.00 0.80 1.11

0.10 0.00 0.80 0.95

0.08 0.08 0.80 0.63

0.12 0.01 0.80 0.85

0.12 0.47

0.00 0.00

Income $

§ Negative

¶ Neutral

Capital Gains $

Expense Ratio % . . Income Ratio % . . Turnover Rate % . .

Performance 01-31-14 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

21 . .

24 50

26 54

31 37

26 49

23 72

20

12

2009 2010 2011 2012 2013

-8.62 15.36 14.05 5.64 27.01 5.68 -9.23 10.01 11.60 17.77 7.18 0.00 -14.51 12.73 3.30 11.99 -4.71 7.64 0.72 15.69 10.84 1.43 6.06 9.64 30.74

34

37

47

102

161

324

329

Net Assets $mil

Portfolio Analysis 12-31-13 Share change since 09-13 Total Stocks:78 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

Invesco Short-Term Inv T Federated Govt Obligs In Dreyfus Government Cash Google, Inc. Class A Thermo Fisher Scientific

2.88 2.85 2.85

. . . . . . . . .

1 Yr 3 Yr 5 Yr

20.21 14.02 19.24

Trailing

Total

+/-

+/- Russ %Rank Growth of

Return% S&P 500 1000Gr

Cat

$10,000

Avg Avg

-Avg -Avg Low

3 Mo 6 Mo 1 Yr

2.61 0.61 6.84 -0.01 20.21 -1.31 14.02 0.09 19.24 0.05 8.00 1.17 6.62 2.47

-0.13 -3.31 -4.14 -0.35 -1.64 0.70 3.88

64 10,261 92 10,684 82 12,021 35 14,823 52 24,105 25 21,589 12 26,157

Technology 33.0 5.38 2.77 Hlth care 31.6 3.40 2.06 Basic Mat 22.9 -8.21 1.98 Technology 12.4 -10.77 1.87

10 Yr Incept

8.00 8.40

+Avg

Monsanto Company

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Apple Inc

Other Measures

Standard Index

Best Fit Index

Union Pacific Corp

Industrl Energy Industrl

19.2 3.71 1.82 69.4 3.20 1.80

S&P 500

R3000

Cabot Oil & Gas Corporat Danaher Corporation

Alpha

0.0

0.2

20.8 -3.64 1.79 International Business M Technology 12.2 -5.81 1.74 Prudential Financial Inc Finan Svs . -8.49 1.71 E.I. du Pont de Nemours Basic Mat 21.2 -6.10 1.71 Jarden Corporation Cnsmr Cyc 31.3 -1.47 1.71 Honeywell International, Industrl 22.5 -0.15 1.69 Wells Fargo & Co Finan Svs 11.9 -0.13 1.68 Trimble Navigation Ltd. Technology 43.9 -6.83 1.66 Gentex Corporation Cnsmr Cyc 24.1 -1.36 1.63 Comerica Inc Finan Svs 15.7 -3.66 1.59 Celgene Corporation Hlth care 43.7 -10.08 1.57

Beta

1.01

0.97

R-Squared

96

97

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 13.53 26 0.43 42 18.81 46 0.36 49 7.48 25 0.48 62 Potential Capital Gain Exposure: 25% of assets

Standard Deviation

12.78 14.02

Mean

Sharpe Ratio

1.09

Morningstar’s Take by Katie Rushkewicz Reichart, CFA 02-03-14 LKCM Equity is worth owning. This fund hasn’t garnered a ton of attention or

Kimberly Clark KMB. Accordingly, the fund falls near the growth/blend border of the Morningstar Style Box, so investors shouldn’t be concerned if it doesn’t keep pace with its racier category rivals. It lagged three fourths of its peers in 2013, for instance, but its 30.7% gain was actually quite impressive considering it held 10% cash during a huge equity rally. King isn’t concerned about whether the fund neatly fits into a particular section of the style box, and that flexibility has served shareholders well. Top contributors in recent years have been lower-market-cap names that aren’t in the fund’s S&P 500 benchmark, including Tractor Supply TSCO, Kirby KEX, and Jarden JAH. This approach has given the fund an edge over the benchmark and large-growth and large-blend peers since inception, particularly on a risk-adjusted basis. Finally, the fund charges a reasonable fee considering its small asset base.

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

assets, but it’s a solid large-cap pick. Lead manager and firm founder Luther King has run the fund since its late 1995 inception, though he’s been running money in a similar fashion since founding the firm in 1979. King focuses on companies with high returns on equity, strong cash flows, and reasonable debt loads, which has kept the fund’s volatility in check. Valuation factors in, too, though he avoids deep-value plays and prefers to invest in good businesses even if they look a little pricey on traditional valuation metrics, such as current holdings Google GOOG and Amazon.com AMZN. As a result, the fund currently lands in Morningstar’s large-growth category. By no means is it an aggressive growth fund, though. Its long-term earnings growth and sales growth are typically below most category peers’, as it’s avoided some of the most speculative names. Instead it prefers a good dose of steady blue-chip growers, including longtime holdings Procter & Gamble PG and

Market Cap % Giant 35.5 Large 29.5 Mid 31.5 Small 3.5 Micro 0.0 Avg $mil: 34,767

Value Blnd Growth

Large Mid Small

Cyclical 31.33 1.09 BasicMat 7.05 2.30 12 6 CnsmrCyc13.00 1.52 16 11 FinanSvs 11.28 0.72 12 9 Real Est 0.00 0.00 1 1 Sensitive 48.88 1.12 CommSrvs 2.22 0.55 2 1 Energy 10.29 0.96 13 9 Industrl 19.67 1.73 20 14 Technlgy 16.70 0.95 19 16 Defensive19.81 0.72 CnsmrDef 6.59 0.54 9 6 Hlthcare 13.22 1.12 15 11 Utilities 0.00 0.00 . .

h r t y u j i o p a k s d f

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

18.25 2.97 2.07 9.46 1.65 10.30 7.75 6.60 10.05 -13.84

1.02 1.03 1.14 0.95 1.25 0.77 0.75 0.82 0.78 NMF

% Rel Category

Composition - Net

Cash 8.6 Stocks 91.4 Bonds 0.0 Other 0.0 Foreign 0.0

Address:

301 Commerce Fort Worth, TX 76102 800-688-5526 www.lkcm.com

Minimum Purchase: Min Auto Inv Plan:

$2000 $2000

Add: $1000 IRA: $0

Add: $100

Profitability

% Rel Category

Sales Fees:

No-load, 1.00%R

Return on Equity Return on Assets Net Margin

19.59 8.08 14.41

0.94 0.83 1.02

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

0.70%

(% of Stock)

12-29-95

Actual Fees:

Mgt:0.70% Dist: .

Luther King Capital Mgmt Corp

Expense Projections: Income Distribution:

3Yr:$293 Annually

5Yr:$521 10Yr:$1175

None

N/A

Mutual Funds ß ®

© 2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor timely. Pastperformance is no guarantee of future results.Access updated reportsat Toorder reprints, call312-696-6100. mfb.morningstar.com.

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