Catholic Values Investing

The LKCM Aquinas Funds practice socially responsible investing within the framework provided the United States Conference of Catholic Bishop’s Socially Responsible Investing Guidelines. The LKCM Aquinas Funds follow these guidelines by using an approach that focuses on Catholic values screening of portfolio companies, proactive dialogue with those companies whose practices conflict with the guidelines, and exclusion of those companies that are unwilling to alter their practices over a reasonable period of time.

LKCM monitors portfolio companies selected for each LKCM Aquinas Fund for policies on various issues contemplated by the guidelines, including:

• abortion
• contraceptives
• embryonic stem cell research
• weapons of mass destruction
• human rights
• economic priorities
• environmental responsibility
• fair employment practices

In monitoring portfolio companies, LKCM utilizes screening services provided by third parties and uses other independent research resources, including the Interfaith Center on Corporate Responsibilities and the Investor Responsibility Research Center.

If an LKCM Fund invests in a portfolio company whose policies are inconsistent with the guidelines, LKCM may attempt to influence the company’s policies through, among other things, proactive dialogue and other efforts. If LKCM’s efforts are unsuccessful over a reasonable period of time, LKCM may sell the company’s securities or otherwise exclude future investments in such companies.