On August 29, 2000, the LKCM International Fund will have a special meeting of
shareholders and those shareholders will be asked to approve a new policy that
has been unanimously recommended by the Trustees of the Fund. This policy will
allow the LKCM International Fund to adopt a 'master-feeder structure' under
which it would be a 'feeder' fund that invests all of its investable assets
into a separate 'master' mutual fund that performs portfolio management, fund
accounting and custodial functions.
If the new policy is approved, LKCM International Fund intends to invest in a
new master fund that is advised by TT International Investment Management, the
current subadviser for the LKCM International Fund. At least one other mutual
fund will invest in this new master fund and it is expected that the pooling of
that fund's assets with the LKCM International Fund's assets will result in a
lower expense ratio for the LKCM International Fund.
