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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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070 F010400 Y
070 F020400 N
070 G010400 Y
070 G020400 N
070 H010400 Y
070 H020400 N
070 I010400 Y
070 I020400 N
070 J010400 Y
070 J020400 N
070 K010400 Y
070 K020400 N
070 L010400 Y
070 L020400 N
070 M010400 Y
070 M020400 N
070 N010400 Y
070 N020400 N
070 O010400 Y
070 O020400 N
070 P010400 Y
070 P020400 N
070 Q010400 Y
070 Q020400 N
070 R010400 Y
070 R020400 N
071 A000400 22088
071 B000400 8052
071 C000400 9862
071 D000400 82
072 A000400 12
072 B000400 624
072 C000400 0
072 D000400 0
072 E000400 0
072 F000400 53
072 G000400 19
072 H000400 0
072 I000400 11
072 J000400 6
072 K000400 0
072 L000400 1
072 M000400 0
072 N000400 4
072 O000400 0
072 P000400 0
072 Q000400 28
072 R000400 8
<PAGE> PAGE 22
072 S000400 1
072 T000400 0
072 U000400 3
072 V000400 0
072 W000400 1
072 X000400 135
072 Y000400 66
072 Z000400 555
072AA000400 29
072BB000400 0
072CC010400 211
072CC020400 0
072DD010400 559
072DD020400 0
072EE000400 5
073 A010400 0.4600
073 A020400 0.0000
073 B000400 0.0000
073 C000400 0.0000
074 A000400 0
074 B000400 0
074 C000400 116
074 D000400 14242
074 E000400 0
074 F000400 0
074 G000400 0
074 H000400 0
074 I000400 0
074 J000400 0
074 K000400 6
074 L000400 251
074 M000400 15
074 N000400 14630
074 O000400 0
074 P000400 0
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 73
074 S000400 0
074 T000400 14557
074 U010400 1420
074 U020400 0
074 V010400 10.25
074 V020400 0.00
074 W000400 0.0000
074 X000400 28
074 Y000400 0
075 A000400 0
075 B000400 10215
<PAGE> PAGE 23
076 000400 0.00
008 A000501 LUTHER KING CAPITAL MANAGEMENT CORPORATION
008 B000501 A
008 C000501 801-14458
008 D010501 FORT WORTH
008 D020501 TX
008 D030501 76102
015 A000501 FIRSTAR BANK MILWAUKEE, N.A.
015 B000501 C
015 C010501 MILWAUKEE
015 C020501 WI
015 C030501 53202
015 E010501 X
015 A000502 THE CHASE MANHATTAN BANK
015 B000502 S
015 C010502 NEW YORK
015 C020502 NY
015 C030502 10003
015 E010502 X
015 A000503 ROYAL BANK OF CANADA
015 B000503 S
015 C010503 TORONTO
015 D010503 CANADA
015 E040503 X
015 A000504 DEN DANSKE BANK
015 B000504 S
015 C010504 COPENHAGEN
015 D010504 DENMARK
015 E040504 X
015 A000505 BANQUE PARIBAS
015 B000505 S
015 C010505 PARIS
015 D010505 FRANCE
015 E040505 X
015 A000506 DRESDNER BANK A.G.
015 B000506 S
015 C010506 FRANKFURT
015 D010506 GERMANY
015 E040506 X
015 A000507 BANQUE PARIBAS
015 B000507 S
015 C010507 MILAN
015 D010507 ITALY
015 E040507 X
015 A000508 THE FUJI BANK, LTD.
015 B000508 S
015 C010508 TOKYO
015 D010508 JAPAN
015 E040508 X
015 A000509 ABN-AMRO BANK N.V.
015 B000509 S
<PAGE> PAGE 24
015 C010509 AMSTERDAM
015 D010509 NETHERLANDS
015 E040509 X
015 A000510 DEN NORSKE BANK
015 B000510 S
015 C010510 OSLO
015 D010510 NORWAY
015 E040510 X
015 A000511 SKANDINAVISKA ENSKILDA BANKEN
015 B000511 S
015 C010511 STOCKHOLM
015 D010511 SWEDEN
015 E040511 X
015 A000512 THE CHASE MANHATTAN BANK
015 B000512 S
015 C010512 SYDNEY
015 D010512 AUSTRALIA
015 E040512 X
015 A000513 UNION BANK OF SWITZERLAND A.G.
015 B000513 S
015 C010513 ZURICH
015 D010513 SWITZERLAND
015 E040513 X
015 A000514 THE CHASE MANHATTAN BANK
015 B000514 S
015 C010514 LONDON
015 D010514 UNITED KINGDOM
015 E040514 X
015 A000515 CITIBANK, N.A.
015 B000515 S
015 C010515 SAO PAULO
015 D010515 BRAZIL
015 E040515 X
015 A000516 MERITA BANK LTD.
015 B000516 S
015 C010516 HELSINKI
015 D010516 FINLAND
015 E040516 X
015 A000517 THE CHASE MANHATTAN BANK
015 B000517 S
015 C010517 HONG KONG
015 D010517 HONG KONG
015 E040517 X
024 000500 N
028 A010500 2098
028 A020500 0
028 A030500 0
028 A040500 338
028 B010500 1814
028 B020500 0
028 B030500 0
<PAGE> PAGE 25
028 B040500 377
028 C010500 668
028 C020500 0
028 C030500 0
028 C040500 661
028 D010500 774
028 D020500 0
028 D030500 0
028 D040500 538
028 E010500 1973
028 E020500 0
028 E030500 0
028 E040500 2378
028 F010500 471
028 F020500 0
028 F030500 0
028 F040500 437
028 G010500 7798
028 G020500 0
028 G030500 0
028 G040500 4729
028 H000500 0
045 000500 Y
046 000500 N
047 000500 Y
048 000500 1.000
048 A010500 0
048 A020500 0.000
048 B010500 0
048 B020500 0.000
048 C010500 0
048 C020500 0.000
048 D010500 0
048 D020500 0.000
048 E010500 0
048 E020500 0.000
048 F010500 0
048 F020500 0.000
048 G010500 0
048 G020500 0.000
048 H010500 0
048 H020500 0.000
048 I010500 0
048 I020500 0.000
048 J010500 0
048 J020500 0.000
048 K010500 0
048 K020500 0.000
049 000500 N
050 000500 N
051 000500 N
<PAGE> PAGE 26
052 000500 N
053 A000500 Y
053 B000500 Y
053 C000500 N
055 A000500 Y
055 B000500 N
056 000500 Y
057 000500 N
058 A000500 N
059 000500 Y
060 A000500 Y
060 B000500 Y
061 000500 10000
062 A000500 N
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 0.0
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
062 L000500 0.0
062 M000500 0.0
062 N000500 0.0
062 O000500 0.0
062 P000500 0.0
062 Q000500 0.0
062 R000500 0.0
063 A000500 0
063 B000500 0.0
066 A000500 Y
066 B000500 N
066 C000500 N
066 D000500 N
066 E000500 N
066 F000500 N
066 G000500 Y
067 000500 N
068 A000500 N
068 B000500 Y
069 000500 N
070 A010500 N
070 A020500 N
070 B010500 Y
070 B020500 N
070 C010500 Y
070 C020500 N
070 D010500 Y
<PAGE> PAGE 27
070 D020500 N
070 E010500 Y
070 E020500 N
070 F010500 Y
070 F020500 N
070 G010500 Y
070 G020500 N
070 H010500 Y
070 H020500 N
070 I010500 Y
070 I020500 N
070 J010500 Y
070 J020500 N
070 K010500 Y
070 K020500 N
070 L010500 Y
070 L020500 Y
070 M010500 Y
070 M020500 Y
070 N010500 Y
070 N020500 N
070 O010500 Y
070 O020500 N
070 P010500 Y
070 P020500 N
070 Q010500 Y
070 Q020500 N
070 R010500 Y
070 R020500 Y
071 A000500 117725
071 B000500 66017
071 C000500 33719
071 D000500 196
072 A000500 12
072 B000500 175
072 C000500 515
072 D000500 0
072 E000500 0
072 F000500 397
072 G000500 36
072 H000500 0
072 I000500 13
072 J000500 35
072 K000500 0
072 L000500 3
072 M000500 1
072 N000500 17
072 O000500 0
072 P000500 0
072 Q000500 33
072 R000500 10
<PAGE> PAGE 28
072 S000500 2
072 T000500 0
072 U000500 6
072 V000500 0
072 W000500 1
072 X000500 554
072 Y000500 78
072 Z000500 214
072AA000500 0
072BB000500 2605
072CC010500 3465
072CC020500 0
072DD010500 0
072DD020500 0
072EE000500 0
073 A010500 0.0000
073 A020500 0.0000
073 B000500 0.0000
073 C000500 0.0000
074 A000500 604
074 B000500 0
074 C000500 0
074 D000500 0
074 E000500 1074
074 F000500 52505
074 G000500 0
074 H000500 0
074 I000500 1248
074 J000500 7920
074 K000500 0
074 L000500 92
074 M000500 1565
074 N000500 65008
074 O000500 296
074 P000500 114
074 Q000500 0
074 R010500 0
074 R020500 7531
074 R030500 0
074 R040500 82
074 S000500 0
074 T000500 56985
074 U010500 5174
074 U020500 0
074 V010500 11.01
074 V020500 0.00
074 W000500 0.0000
074 X000500 114
074 Y000500 0
075 A000500 0
075 B000500 37318
<PAGE> PAGE 29
076 000500 0.00
SIGNATURE VICTORIA KAMPA
TITLE COMPLIANCE OFFICER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000918942
<NAME> LKCM FUNDS
<SERIES>
<NUMBER> 01
<NAME> SMALL CAP EQUITY FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 206,234
<INVESTMENTS-AT-VALUE> 248,848
<RECEIVABLES> 202
<ASSETS-OTHER> 42
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 249,092
<PAYABLE-FOR-SECURITIES> 431
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 643
<TOTAL-LIABILITIES> 1,074
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 206,019
<SHARES-COMMON-STOCK> 15,779
<SHARES-COMMON-PRIOR> 16,270
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (615)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 42,614
<NET-ASSETS> 248,018
<DIVIDEND-INCOME> 1,784
<INTEREST-INCOME> 1,542
<OTHER-INCOME> 0
<EXPENSES-NET> 2,392
<NET-INVESTMENT-INCOME> 934
<REALIZED-GAINS-CURRENT> (630)
<APPREC-INCREASE-CURRENT> (18,660)
<NET-CHANGE-FROM-OPS> (18,356)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,034)
<DISTRIBUTIONS-OF-GAINS> (730)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,329
<NUMBER-OF-SHARES-REDEEMED> (1,924)
<SHARES-REINVESTED> 105
<NET-CHANGE-IN-ASSETS> (26,770)
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<GROSS-EXPENSE> 2,392
<AVERAGE-NET-ASSETS> 263,727
<PER-SHARE-NAV-BEGIN> 16.89
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> (1.10)
<PER-SHARE-DIVIDEND> (0.07)
<PER-SHARE-DISTRIBUTIONS> (0.05)
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000918942
<NAME> LKCM FUNDS
<SERIES>
<NUMBER> 02
<NAME> EQUITY FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 28,563
<INVESTMENTS-AT-VALUE> 41,284
<RECEIVABLES> 66
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 41,353
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 284
<TOTAL-LIABILITIES> 284
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 28,253
<SHARES-COMMON-STOCK> 2,854
<SHARES-COMMON-PRIOR> 3,976
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 95
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,721
<NET-ASSETS> 41,069
<DIVIDEND-INCOME> 442
<INTEREST-INCOME> 161
<OTHER-INCOME> 0
<EXPENSES-NET> 318
<NET-INVESTMENT-INCOME> 285
<REALIZED-GAINS-CURRENT> 628
<APPREC-INCREASE-CURRENT> 4,347
<NET-CHANGE-FROM-OPS> 5,260
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (284)
<DISTRIBUTIONS-OF-GAINS> (1,149)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 483
<NUMBER-OF-SHARES-REDEEMED> (1,691)
<SHARES-REINVESTED> 86
<NET-CHANGE-IN-ASSETS> (11,323)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 618
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 282
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 405
<AVERAGE-NET-ASSETS> 40,273
<PER-SHARE-NAV-BEGIN> 13.18
<PER-SHARE-NII> 0.10
<PER-SHARE-GAIN-APPREC> 1.63
<PER-SHARE-DIVIDEND> (0.10)
<PER-SHARE-DISTRIBUTIONS> (0.42)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.39
<EXPENSE-RATIO> 0.80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000918942
<NAME> LKCM FUNDS
<SERIES>
<NUMBER> 03
<NAME> BALANCED FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 3,412
<INVESTMENTS-AT-VALUE> 3,715
<RECEIVABLES> 37
<ASSETS-OTHER> 16
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,768
<PAYABLE-FOR-SECURITIES> 103
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 26
<TOTAL-LIABILITIES> 129
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,355
<SHARES-COMMON-STOCK> 329
<SHARES-COMMON-PRIOR> 1
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (19)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 303
<NET-ASSETS> 3,639
<DIVIDEND-INCOME> 19
<INTEREST-INCOME> 43
<OTHER-INCOME> 0
<EXPENSES-NET> 15
<NET-INVESTMENT-INCOME> 46
<REALIZED-GAINS-CURRENT> (20)
<APPREC-INCREASE-CURRENT> 303
<NET-CHANGE-FROM-OPS> 331
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (48)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 325
<NUMBER-OF-SHARES-REDEEMED> (367)
<SHARES-REINVESTED> 5
<NET-CHANGE-IN-ASSETS> 3,357
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 13
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 89
<AVERAGE-NET-ASSETS> 1,962
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.22
<PER-SHARE-GAIN-APPREC> 1.05
<PER-SHARE-DIVIDEND> (0.22)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.05
<EXPENSE-RATIO> 0.80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000918942
<NAME> LKCM FUNDS
<SERIES>
<NUMBER> 04
<NAME> FIXED INCOME FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 14,146
<INVESTMENTS-AT-VALUE> 14,357
<RECEIVABLES> 257
<ASSETS-OTHER> 15
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 14,629
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 73
<TOTAL-LIABILITIES> 73
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,324
<SHARES-COMMON-STOCK> 1,420
<SHARES-COMMON-PRIOR> 1
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 22
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 211
<NET-ASSETS> 14,557
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 624
<OTHER-INCOME> 0
<EXPENSES-NET> (68)
<NET-INVESTMENT-INCOME> 556
<REALIZED-GAINS-CURRENT> 29
<APPREC-INCREASE-CURRENT> 211
<NET-CHANGE-FROM-OPS> 795
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (559)
<DISTRIBUTIONS-OF-GAINS> (5)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,411
<NUMBER-OF-SHARES-REDEEMED> (40)
<SHARES-REINVESTED> 48
<NET-CHANGE-IN-ASSETS> 14,557
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 52
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 134
<AVERAGE-NET-ASSETS> 10,641
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.54
<PER-SHARE-GAIN-APPREC> 0.17
<PER-SHARE-DIVIDEND> (0.46)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.25
<EXPENSE-RATIO> 0.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000918942
<NAME> LKCM FUNDS
<SERIES>
<NUMBER> 05
<NAME> INTERNATIONAL FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 51,416
<INVESTMENTS-AT-VALUE> 54,827
<RECEIVABLES> 8,012
<ASSETS-OTHER> 2,170
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 65,009
<PAYABLE-FOR-SECURITIES> 7,827
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 196
<TOTAL-LIABILITIES> 8,023
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53,863
<SHARES-COMMON-STOCK> 5,174
<SHARES-COMMON-PRIOR> 1
<ACCUMULATED-NII-CURRENT> (126)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (217)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,465
<NET-ASSETS> 56,985
<DIVIDEND-INCOME> 515
<INTEREST-INCOME> 175
<OTHER-INCOME> 0
<EXPENSES-NET> 476
<NET-INVESTMENT-INCOME> 214
<REALIZED-GAINS-CURRENT> (2,605)
<APPREC-INCREASE-CURRENT> 3,465
<NET-CHANGE-FROM-OPS> 1,074
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,709
<NUMBER-OF-SHARES-REDEEMED> (535)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 56,985
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 397
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 554
<AVERAGE-NET-ASSETS> 40,211
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> 0.97
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.01
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
INDEPENDENT AUDITORS' REPORT
To the Trustees of the LKCM Funds:
In planning and performing our audits of the financial statements of the LKCM
Funds (including the LKCM Small Cap Equity Fund, the LKCM Equity Fund, the LKCM
Balanced Fund, the LKCM Fixed Income Fund, and the LKCM International Fund) for
the year ended December 31, 1998 (on which we have issued our report dated
February 12, 1999), we considered their internal controls, including control
activities for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements
and to comply with the requirements of Form N-SAR, and not to provide assurance
on the LKCM Funds' internal control.
The management of the LKCM Funds is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, misstatements due to
error or fraud may occur and not be detected. Also, projections of any
evaluation of internal control to future periods are subject to the risk that
the internal control may become inadequate because of changes in conditions or
that the degree of compliance with policies or procedures may deteriorate.
Our consideration of the LKCM Funds' internal controls would not necessarily
disclose all matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that misstatements due to error or fraud in amounts that would be
material in relation to the financial statements being audited may occur and not
be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving the
LKCM Funds' internal controls and their operation, including controls for
safeguarding securities, that we consider to be material weaknesses as defined
above as of December 31, 1998.
This report is intended solely for the information and use of management, the
Board of Trustees of the LKCM Funds, and the Securities and Exchange Commission
and is not intended to be and should not be used by anyone other than these
specified parties.
February 12, 1999
