# EDGAR Filing Document

**Accession Number:** 0001763143
**File Stem:** 0001398344-26-004602
**Filing Date:** 2026-3
**Character Count:** 142128
**Document Hash:** ef09851c5082baa6a722a231fe001863
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001398344-26-004602.hdr.sgml**: 20260306

**ACCESSION NUMBER**: 0001398344-26-004602

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 29

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260306

**DATE AS OF CHANGE**: 20260306

**EFFECTIVENESS DATE**: 20260306

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** X-Square Balanced Fund, LLC
- **CENTRAL INDEX KEY:** 0001763143

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** PR
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-23417
- **FILM NUMBER:** 26728680

**BUSINESS ADDRESS:**
- **STREET 1:** 208 PONCE DE LEON AVE.
- **STREET 2:** STE. 1111
- **CITY:** SAN JUAN
- **STATE:** PR
- **ZIP:** 00918
- **BUSINESS PHONE:** 787-282-1621

**MAIL ADDRESS:**
- **STREET 1:** 208 PONCE DE LEON AVE.
- **STREET 2:** STE. 1111
- **CITY:** SAN JUAN
- **STATE:** PR
- **ZIP:** 00918

## Series and Classes Contracts Data

### X-Square Balanced Fund, LLC (Series ID: S000065136)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000210870 | Institutional Class | SQBIX           |
| C000210871 | Class A             | SQBFX           |
| C000210872 | Class C             | SQCBX           |

?xml version='1.0' encoding='ASCII'? Consolidated ssr-output-EDGAR XBRL File

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: 811-23417

**X-Square Balanced Fund, LLC**

(Exact name of Registrant as specified in charter)

**Centro Internacional de Mercadeo II, 90 Carr. 165, Suite 803,** 

**Guaynabo, Puerto Rico 000968** 

(Address of Principal Executive Offices) (Zip code)

Registrant's Telephone Number, including Area Code: +1 (787) 282-1621

X-Square Capital, LLC

Centro Internacional de Mercadeo II, 90 Carr 165, Suite 803

Guaynabo, Puerto Rico 00968

(Name and Address of Agent for Service)

With a copy to:

Andrew Davalla

Thompson Hine LLP

41 S. High Street, Suite 1700

Columbus, OH 43215 (Name and Address of Agent for Service)

Date of fiscal year end: <u>December 31</u>

Date of reporting period: <u>January 1, 2025 – December 31, 2025</u>

Item 1. **Report to Shareholders.**

(a) **# X-SQUARE BALANCED FUND
Class A : SQBFX

SQBFX - ANNUAL SHAREHOLDER REPORT - December 31, 2025

![Image](i2a41c4817c357d89cdba11be.jpg)

![Image](ia8de59f693ed51eafed8f90b.jpg)

## Fund Overview
This annual shareholder report contains important information about X- Square Balanced Fund - A for the period of January 1, 2025 to December 31, 2025.

You can find additional information about the Fund at https://xsquarecapital.com/. You can also request this information by contacting us at 1-787-282-1621.

## What were the Fund's cost for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| Class Name | Cost of a $10,000 Investment | Cost Paid as a percentage of a $10,000 Investment |
| X- Square Balanced Fund - A | $194 | 1.87% |

---

## How did the Fund perform last year?
The X-Square Balanced Fund (the "Fund") registered net gains for calendar year 2025, marking a third consecutive year of strong double-digit performance. The 60/40 benchmark portfolio (S&P 500 Index with the Bloomberg US Aggregate Bond Index) gained 13.65% for the period. While all three major U.S. equity indices—the S&P 500, Nasdaq, and Dow—posted double-digit gains, the year was defined by heightened volatility across global markets, creating attractive opportunities for active management. Early-year turbulence driven by tariff uncertainty, geopolitical risk, and policy ambiguity pushed volatility measures to multi-year highs before conditions stabilized and risk appetite recovered.

Monetary policy remained a central theme as the Federal Reserve delivered rate cuts and formally concluded its quantitative tightening program, improving liquidity conditions despite continued funding-market pressures. Corporate confidence rebounded, with accelerating capital expenditures and renewed merger activity supporting earnings resilience, particularly across technology and financial sectors.

Looking ahead, elevated valuations emphasize earnings delivery, broader participation, disciplined capital deployment, diversification, and attractive risk-adjusted returns for shareholders.

## How did the Fund perform since inception?
The X- Square Balanced Fund - A Fund returned 11.72% for the period November 1, 2019 to December 31, 2025. This is in contrast to the S&P 500<sup>®</sup> Total Return Index, which had a 17.88% return for the same time period. Please see below tables for additional indexes.

### TOTAL RETURN BASED ON $10,000 INVESTMENT
![Growth of 10K Chart](i18d119ebfbf324a8bea2dbf8.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Class A - NAV | Class A - Load | S&P 500<sup>®</sup> Total Return Index | 60% S&P 500 and 40% Bloomberg US Aggregate |
| 11/1/19 | $10000 | $9625 | $10000 | $10000 |
| 12/31/19 | $10370 | $9981 | $10573 | $10343 |
| 6/30/20 | $10250 | $9865 | $10247 | $10445 |
| 12/31/20 | $11610 | $11174 | $12518 | $11866 |
| 6/30/21 | $12570 | $12098 | $14427 | $12849 |
| 12/31/21 | $12691 | $12215 | $16111 | $13748 |
| 6/30/22 | $10960 | $10549 | $12896 | $11533 |
| 12/31/22 | $11310 | $10886 | $13193 | $11578 |
| 6/30/23 | $12044 | $11592 | $15422 | $12829 |
| 12/31/23 | $12983 | $12496 | $16662 | $13623 |
| 6/30/24 | $13788 | $13270 | $19209 | $14808 |
| 12/31/24 | $14632 | $14082 | $20830 | $15673 |
| 6/30/25 | $15282 | $14708 | $22122 | $16529 |
| 12/31/25 | $16346 | $15733 | $24555 | $17820 |

---

The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). Performance data quoted represents past performance and does not guarantee future results. Returns shown are total returns, which assume the reinvestment of dividends and capital gains. The table and graph presented above do not reflect the deduction of taxes a shareholder would pay on fund distributions or the redemption of fund shares.

### AVERAGE ANNUAL TOTAL RETURNS

---

| | | | |
|:---|:---|:---|:---|
| X-Square Balanced Fund | 1 Year | 5 Year | Since Inception |
| Class A - NAV (Incep. November 1, 2019) | 11.72% | 7.08% | 8.30% |
| Class A - Load | 7.54% | 6.27% | 7.63% |
| S&P 500<sup>®</sup> Total Return Index | 17.88% | 14.42% | 15.69% |
| 60% S&P 500 and 40% Bloomberg US Aggregate | 13.70% | 8.47% | 9.83% |

---

### FUND STATISTICS
* Total Net Assets$83,109,172

* # of Portfolio Holdings82

* Portfolio Turnover Rate 9.70%

* Advisory Fees Paid$714,961

Past performance does not guarantee future results. Call 1-787-282-1621 for current month-end performance.

# What did the Fund invest in?

# MATURITY WEIGHTINGS (as of % Net Assets)
![Group By Maturity Chart](i92de6c7ad65b16e1f57af5ae.jpg)

---

| | |
|:---|:---|
| Value | Value.1 |
| 3-5 Years | 0.97% |
| 5-10 Years | 2.21% |
| No Maturity | 3.13% |
| > 10 Years | 30.20% |

---

# TOP 10 HOLDINGS (as of % Net Assets)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Top 10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Top 10 |
| Ginnie Mae II Pool, 2.00%, 08/20/2051 | 4.49% |
| Ginnie Mae II Pool, 2.00%, 10/20/2051 | 4.40% |
| Ginnie Mae II Pool, 2.00%, 11/20/2050 | 4.25% |
| Ginnie Mae II Pool, 2.00%, 11/20/2051 | 3.91% |
| Ginnie Mae II Pool, 2.00%, 06/20/2051 | 3.31% |
| Ginnie Mae II Pool, 2.00%, 12/20/2051 | 3.28% |
| Micron Technology, Inc. | 2.99% |
| Ginnie Mae II Pool, 2.50%, 10/20/2051 | 2.22% |
| Walmart, Inc. | 2.17% |
| Alphabet, Inc. | 2.13% |

---

## Material Fund Changes
There have been no material fund changes during the reporting period.

## Changes in and Disagreements with Accountants
There have been no changes in or disagreements with the Fund's independent accounting firm during the reporting period.

## Householding
If you have consented to receive a single annual or semi-annual shareholder report at a shared address you may revoke this consent by calling the Transfer Agent 1-787-282-1621.

![Image](ia8de59f693ed51eafed8f90b.jpg)

## ADDITIONAL INFORMATION
![Image](i8e22fd55c10d0cca602ccef7.jpg)

Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information, can be found by visiting https://xsquarecapital.com/.

*Distributor, ALPS Distributors, Inc.*

CONNECT WITH US

Phone: 1-787-282-1621

Email: info@xsquarecapital.com

![Image](i2a41c4817c357d89cdba11be.jpg)

#### X-SQUARE BALANCED FUND - CLASS A : SQBFX

#### SQBFX - ANNUAL SHAREHOLDER REPORT - December 31, 2025
98401X106–A–12312025

# X-SQUARE BALANCED FUND
Class C : SQCBX

SQCBX - ANNUAL SHAREHOLDER REPORT - December 31, 2025

![Image](i2a41c4817c357d89cdba11be.jpg)

![Image](ia8de59f693ed51eafed8f90b.jpg)

## Fund Overview
This annual shareholder report contains important information about X- Square Balanced Fund - C for the period of January 1, 2025 to December 31, 2025.

You can find additional information about the Fund at https://xsquarecapital.com/. You can also request this information by contacting us at 1-787-282-1621.

## What were the Fund's cost for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| Class Name | Cost of a $10,000 Investment | Cost Paid as a percentage of a $10,000 Investment |
| X- Square Balanced Fund - C | $273 | 2.64% |

---

## How did the Fund perform last year?
The X-Square Balanced Fund (the "Fund") registered net gains for calendar year 2025, marking a third consecutive year of strong double-digit performance. The 60/40 benchmark portfolio (S&P 500 Index with the Bloomberg US Aggregate Bond Index) gained 13.65% for the period. While all three major U.S. equity indices—the S&P 500, Nasdaq, and Dow—posted double-digit gains, the year was defined by heightened volatility across global markets, creating attractive opportunities for active management. Early-year turbulence driven by tariff uncertainty, geopolitical risk, and policy ambiguity pushed volatility measures to multi-year highs before conditions stabilized and risk appetite recovered.

Monetary policy remained a central theme as the Federal Reserve delivered rate cuts and formally concluded its quantitative tightening program, improving liquidity conditions despite continued funding-market pressures. Corporate confidence rebounded, with accelerating capital expenditures and renewed merger activity supporting earnings resilience, particularly across technology and financial sectors.

Looking ahead, elevated valuations emphasize earnings delivery, broader participation, disciplined capital deployment, diversification, and attractive risk-adjusted returns for shareholders.

## How did the Fund perform since inception?
The X- Square Balanced Fund - C Fund returned 10.68% for the period November 1, 2019 to December 31, 2025. This is in contrast to the S&P 500<sup>®</sup> Total Return Index, which had a 17.88% return for the same time period. Please see below tables for additional indexes.

### TOTAL RETURN BASED ON $10,000 INVESTMENT
![Growth of 10K Chart](i41316beb74fe78f745a09232.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | Class C - NAV | S&P 500<sup>®</sup> Total Return Index | 60% S&P 500 and 40% Bloomberg US Aggregate |
| 11/1/19 | $10000 | $10000 | $10000 |
| 12/31/19 | $10350 | $10573 | $10343 |
| 6/30/20 | $10190 | $10247 | $10445 |
| 12/31/20 | $11500 | $12518 | $11866 |
| 6/30/21 | $12410 | $14427 | $12849 |
| 12/31/21 | $12481 | $16111 | $13748 |
| 6/30/22 | $10739 | $12896 | $11533 |
| 12/31/22 | $11038 | $13193 | $11578 |
| 6/30/23 | $11720 | $15422 | $12829 |
| 12/31/23 | $12587 | $16662 | $13623 |
| 6/30/24 | $13308 | $19209 | $14808 |
| 12/31/24 | $14056 | $20830 | $15673 |
| 6/30/25 | $14600 | $22122 | $16529 |
| 12/31/25 | $15558 | $24555 | $17820 |

---

The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). Performance data quoted represents past performance and does not guarantee future results. Returns shown are total returns, which assume the reinvestment of dividends and capital gains. The table and graph presented above do not reflect the deduction of taxes a shareholder would pay on fund distributions or the redemption of fund shares.

### AVERAGE ANNUAL TOTAL RETURNS

---

| | | | |
|:---|:---|:---|:---|
| X-Square Balanced Fund | 1 Year | 5 Year | Since Inception |
| Class C - NAV (Incep. November 1, 2019) | 10.68% | 6.23% | 7.43% |
| Class C - Load | 9.68% | 6.23% | 7.43% |
| S&P 500<sup>®</sup> Total Return Index | 17.88% | 14.42% | 15.69% |
| 60% S&P 500 and 40% Bloomberg US Aggregate | 13.70% | 8.47% | 9.83% |

---

### FUND STATISTICS
* Total Net Assets$83,109,172

* # of Portfolio Holdings82

* Portfolio Turnover Rate 9.70%

* Advisory Fees Paid$714,961

Past performance does not guarantee future results. Call 1-787-282-1621 for current month-end performance.

# What did the Fund invest in?

# MATURITY WEIGHTINGS (as of % Net Assets)
![Group By Maturity Chart](i92de6c7ad65b16e1f57af5ae.jpg)

---

| | |
|:---|:---|
| Value | Value.1 |
| 3-5 Years | 0.97% |
| 5-10 Years | 2.21% |
| No Maturity | 3.13% |
| > 10 Years | 30.20% |

---

# TOP 10 HOLDINGS (as of % Net Assets)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Top 10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Top 10 |
| Ginnie Mae II Pool, 2.00%, 08/20/2051 | 4.49% |
| Ginnie Mae II Pool, 2.00%, 10/20/2051 | 4.40% |
| Ginnie Mae II Pool, 2.00%, 11/20/2050 | 4.25% |
| Ginnie Mae II Pool, 2.00%, 11/20/2051 | 3.91% |
| Ginnie Mae II Pool, 2.00%, 06/20/2051 | 3.31% |
| Ginnie Mae II Pool, 2.00%, 12/20/2051 | 3.28% |
| Micron Technology, Inc. | 2.99% |
| Ginnie Mae II Pool, 2.50%, 10/20/2051 | 2.22% |
| Walmart, Inc. | 2.17% |
| Alphabet, Inc. | 2.13% |

---

## Material Fund Changes
There have been no material fund changes during the reporting period.

## Changes in and Disagreements with Accountants
There have been no changes in or disagreements with the Fund's independent accounting firm during the reporting period.

## Householding
If you have consented to receive a single annual or semi-annual shareholder report at a shared address you may revoke this consent by calling the Transfer Agent 1-787-282-1621.

![Image](ia8de59f693ed51eafed8f90b.jpg)

## ADDITIONAL INFORMATION
![Image](i8e22fd55c10d0cca602ccef7.jpg)

Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information, can be found by visiting https://xsquarecapital.com/.

*Distributor, ALPS Distributors, Inc.*

CONNECT WITH US

Phone: 1-787-282-1621

Email: info@xsquarecapital.com

![Image](i2a41c4817c357d89cdba11be.jpg)

#### X-SQUARE BALANCED FUND - CLASS C : SQCBX

#### SQCBX - ANNUAL SHAREHOLDER REPORT - December 31, 2025
98401X205–A–12312025

# X-SQUARE BALANCED FUND
Institutional : SQBIX

SQBIX - ANNUAL SHAREHOLDER REPORT - December 31, 2025

![Image](i2a41c4817c357d89cdba11be.jpg)

![Image](ia8de59f693ed51eafed8f90b.jpg)

## Fund Overview
This annual shareholder report contains important information about X- Square Balanced Fund - Institutional for the period of January 1, 2025 to December 31, 2025.

You can find additional information about the Fund at https://xsquarecapital.com/. You can also request this information by contacting us at 1-787-282-1621.

## What were the Fund's cost for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| Class Name | Cost of a $10,000 Investment | Cost Paid as a percentage of a $10,000 Investment |
| X- Square Balanced Fund - Institutional | $167 | 1.61% |

---

## How did the Fund perform last year?
The X-Square Balanced Fund (the "Fund") registered net gains for calendar year 2025, marking a third consecutive year of strong double-digit performance. The 60/40 benchmark portfolio (S&P 500 Index with the Bloomberg US Aggregate Bond Index) gained 13.65% for the period. While all three major U.S. equity indices—the S&P 500, Nasdaq, and Dow—posted double-digit gains, the year was defined by heightened volatility across global markets, creating attractive opportunities for active management. Early-year turbulence driven by tariff uncertainty, geopolitical risk, and policy ambiguity pushed volatility measures to multi-year highs before conditions stabilized and risk appetite recovered.

Monetary policy remained a central theme as the Federal Reserve delivered rate cuts and formally concluded its quantitative tightening program, improving liquidity conditions despite continued funding-market pressures. Corporate confidence rebounded, with accelerating capital expenditures and renewed merger activity supporting earnings resilience, particularly across technology and financial sectors.

Looking ahead, elevated valuations emphasize earnings delivery, broader participation, disciplined capital deployment, diversification, and attractive risk-adjusted returns for shareholders.

## How did the Fund perform since inception?
The X- Square Balanced Fund - Institutional Fund returned 11.99% for the period November 1, 2019 to December 31, 2025. This is in contrast to the S&P 500<sup>®</sup> Total Return Index, which had a 17.88% return for the same time period. Please see below tables for additional indexes.

### TOTAL RETURN BASED ON $100,000 INVESTMENT
![Growth of 10K Chart](i6ba231f114f3d2acbdc9d38d.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | Institutional | S&P 500<sup>®</sup> Total Return Index | 60% S&P 500 and 40% Bloomberg US Aggregate |
| 11/1/19 | $100000 | $100000 | $100000 |
| 12/31/19 | $103700 | $105727 | $103430 |
| 6/30/20 | $102700 | $102470 | $104448 |
| 12/31/20 | $116500 | $125179 | $118664 |
| 6/30/21 | $126200 | $144271 | $128488 |
| 12/31/21 | $127613 | $161112 | $137480 |
| 6/30/22 | $110306 | $128956 | $115329 |
| 12/31/22 | $114012 | $131934 | $115777 |
| 6/30/23 | $121551 | $154223 | $128294 |
| 12/31/23 | $131256 | $166616 | $136233 |
| 6/30/24 | $139511 | $192094 | $148080 |
| 12/31/24 | $148265 | $208303 | $156728 |
| 6/30/25 | $154978 | $221223 | $165292 |
| 12/31/25 | $166049 | $245547 | $178202 |

---

The chart above represents historical performance of a hypothetical investment of $100,000 in the Fund over the past ten years (or since inception if shorter). Performance data quoted represents past performance and does not guarantee future results. Returns shown are total returns, which assume the reinvestment of dividends and capital gains. The table and graph presented above do not reflect the deduction of taxes a shareholder would pay on fund distributions or the redemption of fund shares.

### AVERAGE ANNUAL TOTAL RETURNS

---

| | | | |
|:---|:---|:---|:---|
| X-Square Balanced Fund | 1 Year | 5 Year | Since Inception |
| Institutional (Incep. November 1, 2019) | 11.99% | 7.35% | 8.57% |
| S&P 500<sup>®</sup> Total Return Index | 17.88% | 14.42% | 15.69% |
| 60% S&P 500 and 40% Bloomberg US Aggregate | 13.70% | 8.47% | 9.83% |

---

### FUND STATISTICS
* Total Net Assets$83,109,172

* # of Portfolio Holdings82

* Portfolio Turnover Rate 9.70%

* Advisory Fees Paid$714,961

Past performance does not guarantee future results. Call 1-787-282-1621 for current month-end performance.

# What did the Fund invest in?

# MATURITY WEIGHTINGS (as of % Net Assets)
![Group By Maturity Chart](i92de6c7ad65b16e1f57af5ae.jpg)

---

| | |
|:---|:---|
| Value | Value.1 |
| 3-5 Years | 0.97% |
| 5-10 Years | 2.21% |
| No Maturity | 3.13% |
| > 10 Years | 30.20% |

---

# TOP 10 HOLDINGS (as of % Net Assets)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Top 10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Top 10 |
| Ginnie Mae II Pool, 2.00%, 08/20/2051 | 4.49% |
| Ginnie Mae II Pool, 2.00%, 10/20/2051 | 4.40% |
| Ginnie Mae II Pool, 2.00%, 11/20/2050 | 4.25% |
| Ginnie Mae II Pool, 2.00%, 11/20/2051 | 3.91% |
| Ginnie Mae II Pool, 2.00%, 06/20/2051 | 3.31% |
| Ginnie Mae II Pool, 2.00%, 12/20/2051 | 3.28% |
| Micron Technology, Inc. | 2.99% |
| Ginnie Mae II Pool, 2.50%, 10/20/2051 | 2.22% |
| Walmart, Inc. | 2.17% |
| Alphabet, Inc. | 2.13% |

---

## Material Fund Changes
There have been no material fund changes during the reporting period.

## Changes in and Disagreements with Accountants
There have been no changes in or disagreements with the Fund's independent accounting firm during the reporting period.

## Householding
If you have consented to receive a single annual or semi-annual shareholder report at a shared address you may revoke this consent by calling the Transfer Agent 1-787-282-1621.

![Image](ia8de59f693ed51eafed8f90b.jpg)

## ADDITIONAL INFORMATION
![Image](i8e22fd55c10d0cca602ccef7.jpg)

Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information, can be found by visiting https://xsquarecapital.com/.

*Distributor, ALPS Distributors, Inc.*

CONNECT WITH US

Phone: 1-787-282-1621

Email: info@xsquarecapital.com

![Image](i2a41c4817c357d89cdba11be.jpg)

#### X-SQUARE BALANCED FUND - INSTITUTIONAL : SQBIX

#### SQBIX - ANNUAL SHAREHOLDER REPORT - December 31, 2025
98401X304–A–12312025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

Item 2. **Code of Ethics.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant,
 as of the end of the period covered by this report, has adopted a code of ethics that applies to the Registrant's principal executive
 officer, principal financial officer, principal accounting officer or controller or any persons performing similar functions on behalf
 of the Registrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the period
 covered by this report, no amendments to the provisions of the code of ethics referred to above in Item 2(a) were made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) During the period covered by this
 report, no implicit or explicit waivers to the provisions of the code of ethics referred to above in Item 2(a) were granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Registrant's Code of Ethics
 is attached as Exhibit 13(a)(1) hereto.

Item 3. **Audit Committee Financial Expert.**

The Board of Managers ("Board") of the Registrant has determined that the Registrant has at least one Audit Committee Financial Expert serving on its audit committee. The Board has designated Ramon Ponte and Luis Roig as the Registrant's Audit Committee Financial Experts. Mr. Ponte and Roig are "independent" as that term is defined in paragraph (a)(2) of Item 3 to Form N-CSR.

Item 4. **Principal Accountant Fees and Services.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Audit Fees</u>: Audit fees are fees related to the audit of and review of the Fund's financial statements included in annual reports
 and registration statements and other services that are normally provided by the independent registered public accounting firm in connection
 with statutory and regulatory filings or engagements. The aggregate fees billed for each of the last two fiscal years for professional
 services rendered by Grant Thornton Puerto Rico LLP (formerly Kevane Grant Thornton LLP) for the audit of the Fund'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 were $49,900 and $51,300 for fiscal year ended December 31, 2024 and fiscal year ended December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Audit-Related Fees:
 Audit-related fees are fees for assurance and related services that are reasonably related to the performance of the audit or review of
 financial statements, but are not reported as audit fees. The aggregate fees billed in each of the last two fiscal years for assurance
 and related services by Grant Thornton Puerto Rico LLP (formerly Kevane Grant Thornton LLP) that are reasonably related to the performance of the audit of the Fund's financial
 statements were $0 and $0 for the fiscal years ended December 31, 2024 and fiscal year ended December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Tax Fees: Tax fees
 are fees associated with tax compliance, tax advice and tax planning. The aggregate fees billed in each of the last two fiscal years for
 professional services rendered by Grant Thornton Puerto Rico LLP (formerly Kevane Grant Thornton LLP) for tax compliance were $6,700 and $6,900 for the fiscal years ended December
 31, 2024 and fiscal year ended December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>All Other Fees</u>: No fees were billed by Grant Thornton Puerto Rico LLP (formerly Kevane Grant Thornton LLP) for products and services
 provided to the Fund other than the services reported in "Audit Fees," "Audit-Related Fees," and "Tax Fees"
 above for the fiscal year ended December 31, 2024 and fiscal year ended December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (1) <u>Audit Committee Pre-Approval Policies and Procedures</u>: All services to be performed by the Registrant's principal accountant must be pre-approved
 by the Registrant's Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) No services described in paragraphs (b) and (d) of this Item 4 were approved by the Registrant's audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Not applicable.

Item 5. **Audit Committee of Listed Registrants.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not applicable to Registrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable to Registrant.

Item 6. **Investments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Schedule of
 Investments is included in the financial statements filed under Item 7 of this Form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable to Registrant.

**Item 7.** **Financial Statements and Financial Highlights for Open-End Management Investment Companies.**

![](fp0097133-1_01.jpg)

![](fp0097133-1_02.jpg)

---

| | |
|:---|:---|
| **Item 7 – Financial Statements and Financial Highlights for Open-End Management Investment Companies** | 1 |
| Schedule of Investments | 2 |
| Statement of Assets and Liabilities | 7 |
| Statement of Operations | 9 |
| Statements of Changes in Net Assets | 10 |
| Financial Highlights | 12 |
| Notes to Financial Statements and Financial Highlights | 18 |
| Report of Independent Registered Public Accounting Firm | 25 |
| Managers and Officers | 26 |
| Privacy Policy | 28 |
| **Item 8 – Changes in and Disagreements with Accountants for Open-End Management Investment Companies** | 30 |
| **Item 9 – Proxy Disclosures for Open-End Management Investment Companies** | 31 |
| **Item 10 – Remuneration Paid to Managers, Officers, and Others of Open-End Management Investment Companies** | 32 |
| **Item 11 – Statement Regarding Basis for Approval of Investment Advisory Contract** | 33 |

---

X-Square Balanced Fund

ITEM 7 – Financial Statements and Financial Highlights for

Open-End Management Investment Companies

Annual Report \| December 31, 2025 1

X-Square Balanced Fund Schedule of Investments

*December 31, 2025*

---

| | | |
|:---|:---|:---|
| **Description** | **Shares** | **Value** |
| **COMMON STOCKS (62.84%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**COMMUNICATIONS (7.60%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alphabet, Inc., Class C | 5642 | $1770461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AppLovin Corp., Class <sub>A</sub><sup>(a)</sup> | 2150 | 1448713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Booking Holdings, Inc. | 125 | 669416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia Group, Inc. | 3387 | 959571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Meta Platforms, Inc., Class A | 1938 | 1279254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zillow Group, Inc., Class <sub>C</sub><sup>(a)</sup> | 2688 | 183375 |
|  |  | 6310790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CONSUMER DISCRETIONARY (11.71%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amazon.com, Inc.<sup>(a)</sup> | 3832 | 884502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chipotle Mexican Grill, Inc.<sup>(a)</sup> | 13851 | 512487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copart, Inc.<sup>(a)</sup> | 17701 | 692994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domino's Pizza, Inc. | 936 | 390144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home Depot, Inc. | 1861 | 640370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lennar Corp., Class A | 6030 | 619884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MercadoLibre, Inc.<sup>(a)</sup> | 466 | 938645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PulteGroup, Inc. | 7635 | 895280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;QXO, Inc.<sup>(a)</sup> | 17675 | 340951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RH<sup>(a)</sup> | 2357 | 422257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tesla, Inc.<sup>(a)</sup> | 2789 | 1254269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TJX Cos., Inc. | 8768 | 1346852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tractor Supply Co. | 16025 | 801410 |
|  |  | 9740045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CONSUMER STAPLES (6.58%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Altria Group, Inc. | 12704 | 732513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BJ's Wholesale Club Holdings, Inc.<sup>(a)</sup> | 5795 | 521724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dollar General Corp. | 4590 | 609414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PepsiCo, Inc. | 5085 | 729799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Philip Morris International, Inc. | 6648 | 1066339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Walmart, Inc. | 16215 | 1806513 |
|  |  | 5466302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ENERGY (4.42%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EOG Resources, Inc. | 4935 | 518224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expand Energy Corp. | 7432 | 820196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Fortress Energy, Inc.<sup>(a)</sup> | 44694 | 50951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occidental Petroleum Corp. | 16800 | 690816 |

---

*See Notes to Financial Statements.*

2 www.xsquarecapital.com

X-Square Balanced Fund Schedule of Investments

*December 31, 2025*

---

| | | |
|:---|:---|:---|
| **Description** | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ENERGY (continued)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Suncor Energy, Inc. | 35851 | $1590350 |
|  |  | 3670537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**FINANCIALS (8.38%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ally Financial, Inc. | 14287 | 647058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Berkshire Hathaway, Inc., Class B<sup>(a)</sup> | 2172 | 1091755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chubb, Ltd. | 3248 | 1013766 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Coinbase Global, Inc.<sup>(a)</sup> | 574 | 129804 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intercontinental Exchange, Inc. | 2594 | 420124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;JPMorgan Chase & Co. | 4196 | 1352035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MarketAxess Holdings, Inc. | 2023 | 366669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mastercard, Inc., Class A | 1477 | 843191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OFG Bancorp | 3525 | 144455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PayPal Holdings, Inc. | 7791 | 454839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Truist Financial Corp. | 10164 | 500170 |
|  |  | 6963866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**HEALTH CARE (2.87%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AbbVie, Inc. | 2683 | 613039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amgen, Inc. | 2575 | 842823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bausch Health Cos., Inc.<sup>(a)</sup> | 11163 | 77583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Johnson & Johnson | 4146 | 858014 |
|  |  | 2391459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**INDUSTRIALS (8.05%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fastenal Co. | 21095 | 846543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generac Holdings, Inc.<sup>(a)</sup> | 4114 | 561026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General Dynamics Corp. | 3239 | 1090442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lockheed Martin Corp. | 1625 | 785964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RXO, Inc.<sup>(a)</sup> | 15991 | 202126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TransDigm Group, Inc. | 663 | 881691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United Rentals, Inc. | 1654 | 1338615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;XPO, Inc.<sup>(a)</sup> | 7176 | 975290 |
|  |  | 6681697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**MATERIALS (3.58%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Freeport-McMoRan, Inc. | 13370 | 679062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Glencore PLC, ADR | 75297 | 822997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rio Tinto PLC, ADR | 7278 | 582458 |

---

*See Notes to Financial Statements.*

Annual Report \| December 31, 2025 3

X-Square Balanced Fund Schedule of Investments

*December 31, 2025*

---

| | | |
|:---|:---|:---|
| **Description** | **Shares** | **Value** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**MATERIALS (continued)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tecnoglass, Inc. | 7764 | $390684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vale SA, ADR | 38177 | 497446 |
|  |  | 2972647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TECHNOLOGY (9.65%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advanced Micro Devices, Inc.<sup>(a)</sup> | 6959 | 1490339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Akamai Technologies, Inc.<sup>(a)</sup> | 4979 | 434418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Booz Allen Hamilton Holding Corp. | 3227 | 272230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fortinet, Inc.<sup>(a)</sup> | 8340 | 662279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Garmin, Ltd. | 4763 | 966175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Micron Technology, Inc. | 8700 | 2483068 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oracle Corp. | 3330 | 649050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shopify, Inc., Class A<sup>(a)</sup> | 6629 | 1067070 |
|  |  | 8024629 |
| **TOTAL COMMON STOCKS (Cost $37,629,690)** |  | **52221972** |

---

---

| | | |
|:---|:---|:---|
| | **Principal<br> Amount** | **Value** |
| **MORTGAGE-BACKED SECURITIES (30.20%)** |  |  |
| **Residential (30.20%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MA6540 - 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03/20/50, 2.50% | $1527027 | $1324063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MA6985 - 2020 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11/20/50, 2.00% | 4359469 | 3530275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MA7312 - 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;04/20/51, 2.50% | 1625661 | 1403079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MA7417 - 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;06/20/51, 2.00% | 3317709 | 2748530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MA7533 - 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;08/20/51, 2.00% | 4501917 | 3729578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MA7648 - 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10/20/51, 2.00% | 4408450 | 3652146 |

---

*See Notes to Financial Statements.*

4 www.xsquarecapital.com

X-Square Balanced Fund Schedule of Investments

*December 31, 2025*

---

| | | |
|:---|:---|:---|
| | **Principal<br> Amount** | **Value** |
| **MORTGAGE-BACKED SECURITIES (continued)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MA7704 - 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11/20/51, 2.00% | $3921451 | $3248695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MA7766 - 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/20/51, 2.00% | 3294714 | 2729480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;785221 - 2020 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/20/50, 2.00% | 1078499 | 886072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ginnie Mae II Pool, Series |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;785657 - 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10/20/51, 2.50% | 2148459 | 1845561 |
| **TOTAL MORTGAGE-BACKED SECURITIES (Cost $25,215,387)** |  | **25097479** |
| **GOVERNMENT BONDS (3.23%)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury Bond |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;08/15/32, 2.75% | 1650000 | 1538045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury Notes |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10/31/26, 1.63% | 45600 | 44877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;04/30/30, 3.88% | 800000 | 806250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11/15/35, 4.00% | 300000 | 295688 |
|  |  | 1146815 |
| **TOTAL GOVERNMENT BONDS (Cost $2,680,970)** |  | **2684860** |
| **SHORT-TERM INVESTMENTS (3.08%)** |  |  |
| U.S. Treasury Bills | U.S. Treasury Bills | U.S. Treasury Bills |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;05/14/26, 3.05% | 850000 | 839107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;06/11/26, 3.27% | 1750000 | 1722927 |
|  |  | 2562034 |
| **TOTAL SHORT-TERM INVESTMENTS (Cost $2,561,471)** |  | **2562034** |

---

*See Notes to Financial Statements.*

Annual Report \| December 31, 2025 5

X-Square Balanced Fund Schedule of Investments

*December 31, 2025*

---

| | |
|:---|:---|
| | **Value** |
| **TOTAL INVESTMENTS (99.35%) (Cost $68,087,518)** | **82566345** |
| **Other Assets In Excess Of Liabilities (0.65%)** | 542827 |
| **NET ASSETS (100.00%)** | $**83109172** |

---

*<sup>(a)</sup>* *Non-income producing security.*

 

*See Notes to Financial Statements.*

6 www.xsquarecapital.com

X-Square Balanced Fund Statement of Assets and Liabilities

*December 31, 2025*

---

| | |
|:---|:---|
| **ASSETS:** | |
| Investments, at fair value (Cost $68,087,518) | $82566345 |
| Cash | 224794 |
| Dividend and interest receivable | 148833 |
| Capital shares sold receivable | 302046 |
| Prepaid expenses and other assets | 39111 |
| Total Assets | 83281129 |
| **LIABILITIES:** |  |
| Accrued chief compliance officer fees payable | 3542 |
| Payable due to advisor | 80829 |
| Accrued distribution fees payable | 20023 |
| Accrued professional fees payable | 49302 |
| Accrued Managers' fees payable | 3450 |
| Capital shares redeemed payable | 1741 |
| Other payables and accrued expenses | 13070 |
| Total Liabilities | 171957 |
| Net Assets | $83109172 |
| **COMPOSITION OF NET ASSETS ATTRIBUTABLE TO SHARES:** |  |
| Paid-in capital | $65246225 |
| Total distributable earnings/(deficit) | 17862947 |
| Net Assets | $83109172 |

---

*See Notes to Financial Statements.*

Annual Report \| December 31, 2025 7

X-Square Balanced Fund Statement of Assets and Liabilities

*December 31, 2025*

---

| | |
|:---|:---|
| **NET ASSET VALUE** | |
| **Class A:** |  |
| Net assets | $65413119 |
| Shares outstanding (unlimited shares authorized, no par value) | 4367641 |
| Net Asset Value per Share | $14.98 |
| Maximum offering price per share (NAV/0.945, based on maximum sales charge of 5.50% of the offering price) | $15.85 |
| **Class C:** |  |
| Net assets | $7598535 |
| Shares outstanding (unlimited shares authorized, no par value) | 534468 |
| Net Asset Value per Share | $14.22 |
| **Institutional Class:** |  |
| Net assets | $10097518 |
| Shares outstanding (unlimited shares authorized, no par value) | 663064 |
| Net Asset Value per Share | $15.23 |

---

*See Notes to Financial Statements.*

8 www.xsquarecapital.com

X-Square Balanced Fund Statement of Operations

*For the Year Ended December 31, 2025*

 

 

---

| | |
|:---|:---|
| **INVESTMENT INCOME:** | |
| Dividends (net of foreign withholding tax $19,133) | $783253 |
| Interest | 1151477 |
| Total Investment Income | 1934730 |
| **EXPENSES:** |  |
| Investment advisory fee (see Note 4) | 714961 |
| Fund accounting, administration and compliance fees | 229078 |
| Distribution fees |  |
| &nbsp;&nbsp;&nbsp;Class A | 142493 |
| &nbsp;&nbsp;&nbsp;Class C | 67217 |
| Professional fees | 95066 |
| Managers' fees and expenses | 28499 |
| Transfer agent fees | 43221 |
| Interest expense on credit facility | 1000 |
| Recoupment of previously waived fees |  |
| &nbsp;&nbsp;&nbsp;Class C | 1824 |
| Other expenses | 45430 |
| Total Expenses | 1368789 |
| Less fees reimbursed by Adviser (See Note 4) | – |
| Net Expenses | 1368789 |
| **Net Investment Income** | 565941 |
| **REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:** |  |
| Net realized gain/(loss) on: |  |
| &nbsp;&nbsp;&nbsp;Investment securities | 2216016 |
| &nbsp;&nbsp;&nbsp;Foreign currency transactions | 264 |
| Net realized gain: | 2216280 |
| Change in unrealized appreciation/(depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;Investment securities | 5143825 |
| Net change in unrealized appreciation/ (depreciation) | 5143825 |
| Net Realized and Unrealized Gain on Investments | 7360105 |
| **Net Increase in Net Assets Resulting from Operations** | $7926046 |

---

 

*See Notes to Financial Statements.*

Annual Report \| December 31, 2025 9

X-Square Balanced Fund Statements of Changes in Net Assets

---

| | | |
|:---|:---|:---|
| | **For the <br> Year Ended <br> December 31, 2025** | **For the**<br> **Year Ended<br> December 31, 2024** |
| **FROM OPERATIONS:** |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss) | $565941 | $(95945) |
| &nbsp;&nbsp;&nbsp;Net realized gain | 2216280 | 1219033 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation | 5143825 | 5012151 |
| **Net Increase in Net Assets from Operations** | 7926046 | 6135239 |
| **DISTRIBUTIONS TO SHAREHOLDERS:** |  |  |
| From distributable earnings |  |  |
| &nbsp;&nbsp;&nbsp;Class A**:** |  | (107501) |
| &nbsp;&nbsp;&nbsp;Class C**:** |  | (13927) |
| &nbsp;&nbsp;&nbsp;Institutional Class**:** |  | (5405) |
| From return of capital |  |  |
| &nbsp;&nbsp;&nbsp;Class A: | (953678) | (706261) |
| &nbsp;&nbsp;&nbsp;Class C: | (116375) | (87913) |
| &nbsp;&nbsp;&nbsp;Institutional Class: | (115044) | (38915) |
| **Net Decrease in Net Assets from Distributions to Shareholders** | (1185097) | (959922) |
| **CAPITAL SHARE TRANSACTIONS:** |  |  |
| **Proceeds from sale of shares** |  |  |
| &nbsp;&nbsp;&nbsp;Class A: | 16601481 | 15648093 |
| &nbsp;&nbsp;&nbsp;Class C: | 2292269 | 1145000 |
| &nbsp;&nbsp;&nbsp;Institutional Class: | 6498287 | 1344435 |
| Reinvestment of distributions |  |  |
| &nbsp;&nbsp;&nbsp;Class A: | 742162 | 541898 |
| &nbsp;&nbsp;&nbsp;Class C: | 64796 | 46956 |
| &nbsp;&nbsp;&nbsp;Institutional Class: | 89465 | 27978 |
| Cost of shares redeemed |  |  |
| &nbsp;&nbsp;&nbsp;Class A: | (8717079) | (5222871) |
| &nbsp;&nbsp;&nbsp;Class C: | (910146) | (853573) |
| &nbsp;&nbsp;&nbsp;Institutional Class: | (471163) | (226916) |
| Redemption fees |  |  |
| &nbsp;&nbsp;&nbsp;Class A: | 356 | 686 |
| &nbsp;&nbsp;&nbsp;Class C: |  | 102 |
| &nbsp;&nbsp;&nbsp;Institutional Class: | 354 | – |
| **Net Increase from Capital Share Transactions** | 16190782 | 12451788 |
| **Net Increase in Net Assets** | $22931731 | $17627105 |

---

*See Notes to Financial Statements.*

10 www.xsquarecapital.com

X-Square Balanced Fund Statements of Changes in Net Assets

---

| | | |
|:---|:---|:---|
| | **For the**<br> **Year Ended<br> December 31, 2025** | **For the**<br> **Year Ended<br> December 31, 2024** |
| **NET ASSETS:** |  |  |
| Beginning of period | 60177441 | 42550336 |
| End of period | $83109172 | $60177441 |
| **OTHER INFORMATION:** |  |  |
| **Capital Share Transactions:** |  |  |
| **Class A:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning shares | 3763878 | 2912534 |
| &nbsp;&nbsp;&nbsp;Shares sold | 1168747 | 1197691 |
| &nbsp;&nbsp;&nbsp;Shares issued as reinvestment of dividends | 52922 | 41883 |
| &nbsp;&nbsp;&nbsp;Shares redeemed | (617906) | (388230) |
| Ending Shares | 4367641 | 3763878 |
| **Class C:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning shares | 428044 | 400200 |
| &nbsp;&nbsp;&nbsp;Shares sold | 166605 | 90762 |
| &nbsp;&nbsp;&nbsp;Shares issued as reinvestment of dividends | 4846 | 3772 |
| &nbsp;&nbsp;&nbsp;Shares redeemed | (65027) | (66690) |
| Ending Shares | 534468 | 428044 |
| **Institutional Class:** |  |  |
| &nbsp;&nbsp;&nbsp;Beginning shares | 233765 | 148239 |
| &nbsp;&nbsp;&nbsp;Shares sold | 456967 | 100314 |
| &nbsp;&nbsp;&nbsp;Shares issued as reinvestment of dividends | 6260 | 2138 |
| &nbsp;&nbsp;&nbsp;Shares redeemed | (33928) | (16926) |
| Ending Shares | 663064 | 233765 |

---

*See Notes to Financial Statements.*

Annual Report \| December 31, 2025 11

X-Square Balanced Fund – Class A Financial Highlights

*For a Share Outstanding Throughout the Periods Presented*

 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the<br> Year Ended<br> December 31, <br> 2025** | **For the<br> Year Ended<br> December 31, <br> 2024** | **For the<br> Year Ended<br> December 31,<br> 2023** | **For the<br> Year Ended<br> December 31,<br> 2022** | **For the<br> Year Ended<br> December 31,<br> 2021** |
| **PER SHARE OPERATING PERFORMANCE:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net asset value - beginning of period | $13.64 | $12.33 | $10.97 | $12.57 | $11.61 |
| **INCOME/(LOSS) FROM INVESTMENT OPERATIONS:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss)<sup>(a)</sup> | 0.12 | (0.01) | (0.04) | (0.07) | (0.20) |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain/(loss) on investments | 1.46 | 1.56 | 1.64 | (1.29) | 1.28 |
| &nbsp;&nbsp;&nbsp;Net increase/(decrease) in Net Asset Value | 1.58 | 1.55 | 1.60 | (1.36) | 1.08 |
| **DISTRIBUTIONS TO SHAREHOLDERS:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From net investment income |  | (0.03) |  |  | (0.12) |
| &nbsp;&nbsp;&nbsp;From return of capital | (0.24) | (0.21) | (0.24) | (0.24) | – |
| **Total Distributions to Shareholders** | (0.24) | (0.24) | (0.24) | (0.24) | (0.12) |
| Net asset value per share - end of period | $14.98 | $13.64 | $12.33 | $10.97 | $12.57 |
| **Total Investment Return – Net Asset Value<sup>(b)</sup>** | 11.72% | 12.70% | 14.79% | (10.88%) | 9.31% |
| **RATIOS AND SUPPLEMENTAL DATA:** |  |  |  |  |  |
| Net assets attributable to shares, end of period (000s) | $65413 | $51343 | $35924 | $29014 | $26262 |
| Ratio of actual expenses to average net assets including fee waivers and reimbursements | 1.87% | 2.66% | 2.75% | 2.75% | 2.75% |

---

*See Notes to Financial Statements.*

12 www.xsquarecapital.com

X-Square Balanced Fund – Class A Financial Highlights

*For a Share Outstanding Throughout the Periods Presented*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the<br> Year Ended<br> December 31, <br> 2025** | **For the<br> Year Ended<br> December 31, <br> 2024** | **For the<br> Year Ended<br> December 31,<br> 2023** | **For the<br> Year Ended<br> December 31,<br> 2022** | **For the<br> Year Ended<br> December 31,<br> 2021** |
| Ratio of actual expenses to average net assets excluding fee waivers and reimbursements | 1.87% | 2.66% | 2.80% | 3.28% | 3.50% |
| Ratio of net investment income/(loss) to average net assets | 0.83% | (0.11%) | (0.37%) | (0.59%) | (1.59%) |
| Portfolio turnover rate | 9.70% | 19.58% | 30.18% | 51.37% | 18.40% |

---

*<sup>(a)</sup>* *Calculated using average shares outstanding.*

*<sup>(b)</sup>* *Total investment return is calculated assuming a purchase of shares at the opening on the first day and a sale at closing on the last day of the period reported. Dividends and distributions are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions, if any, and are not annualized.*

 

*See Notes to Financial Statements.*

Annual Report \| December 31, 2025 13

X-Square Balanced Fund – Class C Financial Highlights

*For a Share Outstanding Throughout the Periods Presented*

 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the<br> Year Ended<br> December 31,<br> 2025** | **For the<br> Year Ended<br> December 31,<br> 2024** | **For the<br> Year Ended<br> December 31,<br> 2023** | **For the<br> Year Ended<br> December 31,<br> 2022** | **For the<br> Year Ended<br> December 31,<br> 2021** |
| **PER SHARE OPERATING PERFORMANCE:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net asset value - beginning of period | $13.08 | $11.94 | $10.70 | $12.36 | $11.50 |
| **INCOME/(LOSS) FROM INVESTMENT OPERATIONS:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss)<sup>(a)</sup> | 0.01 | (0.12) | (0.12) | (0.15) | (0.29) |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain/(loss) on investments | 1.37 | 1.50 | 1.60 | (1.27) | 1.27 |
| &nbsp;&nbsp;&nbsp;Net increase/(decrease) in Net Asset Value | 1.38 | 1.38 | 1.48 | (1.42) | 0.98 |
| **DISTRIBUTIONS TO SHAREHOLDERS:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From net investment income |  | (0.03) |  |  | (0.12) |
| &nbsp;&nbsp;&nbsp;From return of capital | (0.24) | (0.21) | (0.24) | (0.24) | – |
| **Total Distributions to Shareholders** | (0.24) | (0.24) | (0.24) | (0.24) | (0.12) |
| Net asset value per share - end of period | $14.22 | $13.08 | $11.94 | $10.70 | $12.36 |
| **Total Investment Return - Net Asset Value<sup>(b)</sup>** | 10.68% | 11.68% | 14.03% | (11.56%) | 8.53% |
| **RATIOS AND SUPPLEMENTAL DATA:** |  |  |  |  |  |
| Net assets attributable to shares, end of period (000s) | $7599 | $5601 | $4778 | $4205 | $4345 |
| Ratio of actual expenses to average net assets including fee waivers and reimbursements | 2.64% | 3.50% | 3.50% | 3.50% | 3.50% |

---

*See Notes to Financial Statements.*

14 www.xsquarecapital.com

X-Square Balanced Fund – Class C Financial Highlights

*For a Share Outstanding Throughout the Periods Presented*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the<br> Year Ended<br> December 31,<br> 2025** | **For the<br> Year Ended<br> December 31,<br> 2024** | **For the<br> Year Ended<br> December 31,<br> 2023** | **For the<br> Year Ended<br> December 31,<br> 2022** | **For the<br> Year Ended<br> December 31,<br> 2021** |
| Ratio of actual expenses to average net assets excluding fee waivers and reimbursements | 2.64% | 3.50% | 3.55% | 4.02% | 4.23% |
| Ratio of net investment income/(loss) to average net assets | 0.06% | (0.94%) | (1.12%) | (1.35%) | (2.34%) |
| Portfolio turnover rate | 9.70% | 19.58% | 30.18% | 51.37% | 18.40% |

---

*<sup>(a)</sup>* *Calculated using average shares outstanding.*

*<sup>(b)</sup>* *Total investment return is calculated assuming a purchase of shares at the opening on the first day and a sale at closing on the last day of the period reported. Dividends and distributions are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions, if any, and are not annualized.*

 

*See Notes to Financial Statements.*

Annual Report \| December 31, 2025 15

X-Square Balanced Fund – Institutional Class Financial Highlights

*For a Share Outstanding Throughout the Periods Presented*

 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the<br> Year Ended<br> December 31,<br> 2025** | **For the<br> Year Ended<br> December 31,<br> 2024** | **For the<br> Year Ended<br> December 31,<br> 2023** | **For the<br> Year Ended<br> December 31,<br> 2022** | **For the<br> Year Ended<br> December 31,<br> 2021** |
| **PER SHARE OPERATING PERFORMANCE:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net asset value - beginning of period | $13.83 | $12.47 | $11.06 | $12.63 | $11.65 |
| **INCOME/(LOSS) FROM INVESTMENT OPERATIONS:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss)<sup>(a)</sup> | 0.16 | 0.02 | (0.01) | (0.04) | (0.17) |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain/(loss) on investments | 1.48 | 1.58 | 1.66 | (1.29) | 1.27 |
| &nbsp;&nbsp;&nbsp;Net increase/(decrease) in Net Asset Value | 1.64 | 1.60 | 1.65 | (1.33) | 1.10 |
| **DISTRIBUTIONS TO SHAREHOLDERS:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From net investment income |  | (0.03) |  |  | (0.12) |
| &nbsp;&nbsp;&nbsp;From return of capital | (0.24) | (0.21) | (0.24) | (0.24) | – |
| **Total Distributions to Shareholders** | (0.24) | (0.24) | (0.24) | (0.24) | (0.12) |
| Net asset value per share - end of period | $15.23 | $13.83 | $12.47 | $11.06 | $12.63 |
| **Total Investment Return – Net Asset Value<sup>(b)</sup>** | 11.99% | 12.96% | 15.13% | (10.59%) | 9.45% |
| **RATIOS AND SUPPLEMENTAL DATA:** |  |  |  |  |  |
| Net assets attributable to shares, end of period (000s) | $10098 | $3234 | $1849 | $1414 | $1590 |
| Ratio of actual expenses to average net assets including fee waivers and reimbursements | 1.61% | 2.39% | 2.50% | 2.50% | 2.50% |

---

*See Notes to Financial Statements.*

16 www.xsquarecapital.com

X-Square Balanced Fund – Institutional Class Financial Highlights

*For a Share Outstanding Throughout the Periods Presented*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the<br> Year Ended<br> December 31,<br> 2025** | **For the<br> Year Ended<br> December 31,<br> 2024** | **For the<br> Year Ended<br> December 31,<br> 2023** | **For the<br> Year Ended<br> December 31,<br> 2022** | **For the<br> Year Ended<br> December 31,<br> 2021** |
| Ratio of actual expenses to average net assets excluding fee waivers and reimbursements | 1.61% | 2.39% | 2.55% | 3.01% | 3.37% |
| Ratio of net investment income/(loss) to average net assets | 1.11% | 0.15% | (0.12%) | (0.36%) | (1.37%) |
| Portfolio turnover rate | 9.70% | 19.58% | 30.18% | 51.37% | 18.40% |

---

*<sup>(a)</sup>* *Calculated using average shares outstanding.*

*<sup>(b)</sup>* *Total investment return is calculated assuming a purchase of shares at the opening on the first day and a sale at closing on the last day of the period reported. Dividends and distributions are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions, if any, and are not annualized. Sales loads are not reflected in total return.*

 

*See Notes to Financial Statements.*

Annual Report \| December 31, 2025 17

X-Square Balanced Fund Notes to Financial Statements and Financial Highlights

*December 31, 2025*

 

NOTE 1 — ORGANIZATION AND REGISTRATION

X-Square Balanced Fund, LLC (the "Fund") is an open-end investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Fund is a diversified investment company with an investment objective which seeks conservation of capital, current income and long-term growth of capital and income. The Fund currently offers Class A, Class C and Institutional Class Shares. Each share class of the Fund represents an investment in the same portfolio of securities, but each share class has its own expense structures. The Fund's Investment Adviser is X-Square Capital, LLC (the "Adviser"). The Fund is a related party to the Adviser.

Subject to certain exceptions, investments in Class C shares are subject to a 1.00% contingent deferred sales charge if shares are sold within 12 months of purchase. The contingent deferred sales charge is expected to be calculated based on the lesser of the offering price and market value of shares being sold.

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The financial statements are prepared in United States Dollars and in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates. The Fund is considered an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946. The financial statements have been prepared as of the close of the New York Stock Exchange ("NYSE") as of the fiscal year end of the Fund.

**Portfolio Valuation:** The net asset value ("NAV") per common share of the Fund is determined daily, on each day that there is a regular trading session on the NYSE as of the close of regular trading. The Fund's NAV per common share is calculated by dividing the value of the Fund's total assets, less its liabilities, by the number of shares outstanding and rounding the result to the nearest full cent.

The Fund generally values its securities based on market prices determined at the close of regular trading on the NYSE (normally, 4 p.m. Eastern time) on each business day (Monday through Friday). The Fund will not value its securities on any day that the NYSE is closed, including the following observed holidays: New Year's Day, Martin Luther King, Jr. Day, Washington's Birthday, Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The Fund's currency valuations are done as of the close of regular trading on the NYSE (normally, 4 p.m. Eastern time).

For equity securities that are traded on an exchange, the market price is usually the closing sale or official closing price on that exchange, provided such price is not deemed stale, and that it represents fair value. In the case of securities not traded on an exchange, or if such closing prices are not otherwise available, the market price is typically determined by independent third party pricing vendors approved by the Fund's Board of Managers ("the Board") using a variety of pricing techniques and methodologies.

18 www.xsquarecapital.com

X-Square Balanced Fund Notes to Financial Statements and Financial Highlights

*December 31, 2025*

The market price for debt obligations (including short-term debt obligations with remaining maturities of 60 days or less) is generally the price supplied by an independent third-party pricing service approved by the Board, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. In certain circumstances, bid and ask prices may be obtained from: (i) a broker/ dealer specified and deemed reliable by the Adviser, (ii) pink sheets, yellow sheets or the blue list, or (iii) a pricing agent that obtains quotations from broker/dealers or evaluates the value of the respective bid and ask prices. If vendors are unable to supply a price, or if the price supplied is deemed to be unreliable, the market price may be determined using quotations received from one or more brokers/dealers that make a market in the security.

When such prices or quotations are not available, or when the Adviser believes that they are unreliable, securities may be priced using fair value procedures approved by the Board. The Fund may also use fair value procedures if the Adviser determines that a significant event has occurred between the time at which a market price is determined and the time at which the Fund NAV is calculated. In particular, the value of foreign securities may be materially affected by events occurring after the close of the market on which they are traded, but before the Fund prices its shares.

The Fund may determine the fair value of investments based on information provided by pricing services and other third-party vendors, which may recommend fair value prices or adjustments with reference to other securities, indices or assets. In considering whether fair value pricing is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the Fund values its securities. In addition, the Fund may utilize modeling tools provided by third-party vendors to determine fair values of foreign securities.

Valuing securities at fair value involves greater reliance on judgment than valuation of securities based on readily available market quotations. A fund that uses fair value to price securities may value those securities higher or lower than another fund using market quotations or its own fair value methodologies to price the same securities. There can be no assurance that the Fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the Fund determines its NAV.

The information above is not intended to reflect an exhaustive list of the methodologies that may be used to value portfolio investments. The Fund's valuation procedures permit the use of a variety of valuation methodologies in connection with valuing portfolio investments. The methodology used for a specific type of investment may vary based on the market data available or other considerations. The methodologies summarized above may not represent the specific means by which portfolio investments are valued on any particular business day.

Annual Report \| December 31, 2025 19

X-Square Balanced Fund Notes to Financial Statements and Financial Highlights

*December 31, 2025*

 

**Cash and Cash Equivalents:** Idle cash may be swept into various overnight demand deposits and is classified as cash and cash equivalents on the Statements of Assets and Liabilities. The Fund maintains cash in bank deposit accounts which, at times, may exceed United States federally insured limits. Amounts swept overnight are available on the next business day.

**Securities Transactions and Investment Income:** Investment security transactions are accounted for on a trade date basis. Dividend income is recorded on the ex-dividend date. Realized gains and losses from securities transactions and unrealized appreciation and depreciation of securities are determined using the identified cost basis method for financial reporting purposes. Dividends are recorded net of foreign withholding taxes. Interest income is recorded on an accrual basis.

**Allocation of Income, Fund-level Expenses, and Realized and Unrealized Gain or Losses:** The Fund's income, expenses (other than class specific service and distribution fees), and realized and unrealized gains and losses are allocated proportionately each day based upon the relative net assets of each class.

**Foreign Currency Translation:** The books and records of the Fund are maintained in U.S. dollars. Investment valuations and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. Prevailing foreign exchange rates may be generally obtained at the close of the NYSE (normally, 4:00 p.m. EST).

**Income Taxes:** The Fund is taxed under the dispositions applicable to Registered Investment Companies established by the Puerto Rico Internal Revenue Code of 2011, as amended ("the Code"), its regulations and the administrative pronouncements promulgated thereunder. The Code states that every registered investment company will be exempt from Puerto Rico income tax for a taxable year if it distributes to its stockholders at least 90% of its taxable net investment income for such taxable year. The Fund intends to meet the 90% distribution requirement on a yearly basis to maintain the income tax exemption.

For U.S. federal income taxes, the Fund will be treated as a foreign corporation not engaged in a trade or business in the United States for purposes of the U.S. Internal Revenue Code of 1986, as amended (the "U.S. Code") and does not intend to derive income treated as effectively connected with a trade or business in the United States. As a foreign corporation not engaged in a trade or business in the United States, the Fund will only be subject to United States federal income taxes if it realizes certain items of U.S. source income of a fixed or determinable annual or periodic nature, in which case the Fund will be subject to withholding of United States federal income tax at a 30% gross rate on such U.S. source income (not including interest received by the Fund on certain registered obligations).

Temporary differences between book-basis and tax-basis components of total distributable earnings arise when certain items, of income gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. As of period end, the tax-basis component of total distributable earnings are detailed as follows:

---

| | |
|:---|:---|
| Undistributed ordinary loss: | 51269 |
| Undistributed capital gains: | $3435389 |
| Unrealized appreciation: | $14478827 |

---

20 www.xsquarecapital.com

X-Square Balanced Fund Notes to Financial Statements and Financial Highlights

*December 31, 2025*

 

The Puerto Rico income tax basis of the Fund's investments at December 31, 2025, was $68,087,518, and net unrealized appreciation for income tax purposes was $14,478,827 (gross unrealized appreciation $17,230,775; gross unrealized depreciation $2,751,948).

The Fund distributed $1,185,097 as a return of capital for the year ended December 31, 2025.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed the Fund's tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions expected to be taken in the Fund's 2024 tax returns. The Fund identifies its major tax jurisdictions as Commonwealth of Puerto Rico; however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months. The Fund remains subject to income tax examinations for its PR income taxes generally for the years 2021 through 2024.

**Indemnification:** The Fund indemnifies its officers and managers for certain liabilities that may arise from the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties that provide general indemnities. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund expects the risk of loss due to these warranties and indemnities to be remote.

NOTE 3 — FAIR VALUE MEASUREMENTS

The Fund discloses the classification of its fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

Various inputs are used in determining the value of the Fund's investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments.

These inputs are categorized in the following hierarchy under applicable financial accounting standards:

---

| | |
|:---|:---|
| Level 1 – | Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date; |
| Level 2 – | Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and |
| Level 3 – | Significant unobservable prices or inputs (including the Fund's own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date. |

---

Annual Report \| December 31, 2025 21

X-Square Balanced Fund Notes to Financial Statements and Financial Highlights

*December 31, 2025*

The following is a summary of the inputs used to value the Fund's investments as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities at Value** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks<sup>(a)</sup> | $52221972 | $– | $– | $52221972 |
| Government Bonds | 2684860 |  |  | 2684860 |
| Mortgage-Backed Securities |  | 25097479 |  | 25097479 |
| Short-Term Investments | 2562034 | – | – | 2562034 |
| &nbsp;&nbsp;&nbsp;Total | $57468866 | $25097479 | $– | $82566345 |

---

*<sup>(a)</sup>* *For a detailed sector breakdown, see the accompanying Schedule of Investments.*

 

There were no Level 3 securities held in the Fund at December 31, 2025. There were no transfers in or out from Level 3 as of and for the year ended December 31, 2025.

NOTE 4 — INVESTMENT ADVISORY AGREEMENT

As compensation for its services, the Fund pays to the Adviser a monthly management fee at an annual rate of 1.00% of its average daily net assets.

The Adviser, a related party to the Fund, pursuant to an Amended and Restated Expense Reimbursement Agreement (the "Agreement"), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until one year from the date of the Fund's prospectus (through April 30, 2025), to ensure that Net Annual Operating Expenses (excluding taxes, extraordinary expenses, reorganization expenses, brokerage commissions, interest, other expenditures that are not capitalized in accordance with generally accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Fund's business) will not exceed 2.75%, 3.50% and 2.50% of the Fund's average daily net assets, respectively for Class A, Class C and Institutional Class Shares, respectively. The Adviser will be permitted to recover, on a class-by-class basis, any fees waived and/or expenses reimbursed pursuant to the Agreement described above to the extent that the Fund expenses in later periods fall below the lesser of (i) the expense limitation in effect at the time the fees and/or expenses to be recovered were waived and/or reimbursed and (ii) the expense limitation in effect at the time the Adviser seeks to recover the fees or expenses. The Adviser will not be entitled to recover any such waived or reimbursed fees and expenses more than three years after the date on which the fees were waived or expenses were reimbursed. This Agreement will renew automatically for periods of one year (each such one year period, a "Renewal Year"). This Agreement may be terminated, as to any succeeding Renewal Year, by either party upon 60 days' written notice prior to the end of the then current Renewal Year. Notwithstanding the foregoing, this Agreement may be terminated by the Fund's Board of Managers at any time if it determines that such termination is in the best interest of the Fund and its Members. The Adviser may not terminate this waiver arrangement without the approval of the Fund's Board of Managers.

22 www.xsquarecapital.com

X-Square Balanced Fund Notes to Financial Statements and Financial Highlights

*December 31, 2025*

As of December 31, 2025, there are no amounts available for recoupment by the Adviser.

NOTE 5 — OTHER AGREEMENTS

**Distribution and Services Agreement**

The Fund has adopted a Distribution and Shareholder Servicing Plan pursuant to Rule 12b-1 under the 1940 Act (the "Plan"). Under the Plan, the Fund is authorized to pay distribution fees in connection with the sale and distribution of its shares and pay service fees in connection with the provision of ongoing services to shareholders of each class and the maintenance of shareholder accounts in an amount up to 0.25% of its average daily net assets each year with respect to Class A Shares, 0.00% with respect to Institutional Class shares and 1.00% with respect to Class C shares. The Class C distribution fee includes a distribution fee of up to 0.75% and a service fee of up to 0.25%.

ALPS Distributors, Inc. (the "Distributor") serves as the Fund's distributor. The Distributor acts as an agent for the Fund and the distributor of the Fund's shares.

**Administration, Bookkeeping and Pricing Agreement**

ALPS Fund Services, Inc. ("ALPS") serves as the administrator to the Fund. The Fund has agreed to pay expenses incurred in connection with ALPS administrative activities. Pursuant to the Administration, Bookkeeping and Pricing Services Agreement, ALPS will provide operational services to the Fund including, but not limited to fund accounting and fund administration and generally assist in the Fund operations.

**Transfer Agency Agreement**

ALPS also serves as the Transfer Agent to the Fund. Under the Transfer Agency Agreement, ALPS is responsible for maintaining all shareholder records of the Fund.

NOTE 6 — INVESTMENT TRANSACTIONS

Investment transactions for the year ended December 31, 2025, excluding U.S. Government Obligations and short-term investments, were as follows:

---

| | |
|:---|:---|
| **Cost of Investments Purchased** | **Proceeds from Investments Sold** |
| $20709753 | $6782263 |

---

Purchases and sales of U.S. Government Obligations for the year ended December 31, 2025, were as follows:

---

| | |
|:---|:---|
| **Cost of Investments Purchased** | **Proceeds from Investments Sold** |
| $1097516 | $126500 |

---

Annual Report \| December 31, 2025 23

X-Square Balanced Fund Notes to Financial Statements and Financial Highlights

*December 31, 2025*

 

NOTE 7 — LINE OF CREDIT

As of December 31, 2025, the Fund had secured a bank line of credit through U.S. Bank, subject to the limitations of the 1940 Act for borrowings. As of the year ended December 31, 2025, the Fund had no outstanding borrowings.

NOTE 8 — RISKS AND UNCERTAINTIES

Risks and uncertainties for the Fund include, but are not limited to, any economic disruption brought upon by artificial intelligence, inflation, tariffs, supply disruptions, and potential fiscal pressures. These matters could erode purchasing power, among other risks, pressuring central banks to delay rate cuts, and negative affecting bond prices while squeezing margins and consumer spending. Developed market indebtedness at elevated levels can also trigger inflationary waves as governments try to monetize these insurmountable debt loads. Geopolitical risks could also result in market and economic disruptions. A continuation or escalation of the Ukrainian war, or any kinetic conflict in the middle east could also alter, disrupt and even destroy important supply chains.

NOTE 9 — SUBSEQUENT EVENTS

The Adviser has evaluated subsequent events through the date of issuance of the financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure or would be required to be recognized in the financial statements.

24 www.xsquarecapital.com

X-Square Balanced Fund Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Managers of X-Square Balanced Fund, LLC:

**Opinion on the financial statements**

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of **X-Square Balanced Fund, LLC** ("the Fund") as of December 31, 2025, and the related statement of operations for the year then ended December 31, 2025, the statements of changes in net assets for each of the two years in the period ended December 31, 2025, the financial highlights for each of the five years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of **X-Square Balanced Fund, LLC** as of December 31, 2025, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period ended December 31, 2025 and the financial highlights for each of the five years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for opinion**

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2025, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the Fund's auditor since 2021.

---

| | |
|:---|:---|
| /s/Grant Thornton Puerto Rico LLP<br> San Juan, Puerto Rico<br> February 25, 2026. | ![](fp0097133-1_03.jpg) |

---

![](fp0097133-1_04.jpg)

Annual Report \| December 31, 2025 25

X-Square Balanced Fund Managers and Officers

*December 31, 2025 (Unaudited)*

 

Overall responsibility for management of the Fund rests with the members of the Board (the "Managers"), who are elected by the shareholders of the Fund, unless appointed to fill a vacancy in accordance with the limited liability company agreement of the Fund and the 1940 Act. The Fund is managed by the Board in accordance with the laws of the Commonwealth of Puerto Rico. There are currently four (4) Managers, three (3) of whom are not "interested persons" (as defined in the 1940 Act) of the Fund (the "Independent Managers"). The Managers, in turn, elect the officers of the Fund to supervise actively its day-to-day operations.

The following table lists each Manager, his or her year of birth, position with the Fund, principal occupations during the past five years, and other directorships. Each Manager oversees the Fund. There is no defined term of office, and each Manager serves until the earlier of his resignation, retirement, removal, death, or the election of a qualified successor. Each Manager's address is c/o X-Square Balanced Fund, Centro Internacional de Mercadeo II, 90 Carr. 165, Suite 803, Guaynabo, Puerto Rico 00968.

INDEPENDENT MANAGERS

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name, Address and YOB** | **Positions Held with the Fund and Length of Time Served** | **Principal Occupation**<br> **During the Past Five Years** | **Number of**<br> **Portfolios**<br> **in Fund**<br> **Complex\***<br> **Overseen**<br> **by Manager** | **Other Directorships**<br> **held by Manager**<br> **During Last Five Years** |
| Luis Roig<br> (1959) | Manager since June 2019 | Managing Director and CFO, Santander Securities LLC from 2013 until 2016; Chief Financial Officer, Americas Leading Finance LLC since 2016. | 2 | Director of X-Square Series Trust since 2022 |
| Denisse Rodriguez<br> (1984) | Manager since March 2022 | Executive Director, Puerto Rico Science Technology & Research Trust, since 2015. | 2 | Director of X-Square Series Trust since 2022 |
| Ramon Ponte<br> (1958) | Manager since March 2022 | CPA/Consultant, Self-Employed, since 2011. | 2 | Director of Fundacion Intellectus Foundation since 2020; Director and Chair of the Puerto Rico CPA Foundation from 2019 to 2025; Director and Audit Committee Chair of Bancredito International Bank from 2014-2023, and Director of X-Square Series Trust since 2022. |

---

26 www.xsquarecapital.com

X-Square Balanced Fund Managers and Officers

*December 31, 2025 (Unaudited)*

 

INTERESTED MANAGERS

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name, Address and YOB** | **Positions Held with the Fund and Length of Time Served** | **Principal Occupation**<br> **During the Past Five Years** | **Number of**<br> **Portfolios**<br> **in Fund**<br> **Complex\***<br> **Overseen**<br> **by Manager** | **Other Directorships**<br> **held by Manager**<br> **During Last Five Years** |
| Ignacio Canto<br> \*\*(1983) | President, since 2019 | President of X-Square Capital, LLC since 2013. | 2 | Director of X2 Alternative Dividend Alpha Fund, Inc. and Interested Trustee of X-Square Series Trust |

---

\* *The "Fund Complex" consists of the Fund and of all the series of the X-Square Series Trust.*

*\*\** *An "interested person," as defined by the 1940 Act. Mr. Canto is deemed to be an "interested" Manager because he is the owner of all membership interests of the Adviser and also serves as its President, Treasurer and sole director.*

 

OFFICERS

---

| | | |
|:---|:---|:---|
| **Name, Address and YOB** | **Position/Term of Office\*** | **Principal Occupation During the Past Five Years** |
| Ignacio Canto<br> (1983) | President since January 2019 | President of X-Square Capital, LLC since 2013. |
| Cristina Perez<br> (1976) | Treasurer since May 2022 | Chief Compliance Officer and Head of Operations at X-Square Capital since 2022. Banco Popular de Puerto Rico Mutual Fund's Administration from 1999-2022.Treasurer of the X-Square Municipal Income ETF since May 2023. |
| Gabriel Medina<br> (1989) | Secretary since January 2019 | Portfolio Manager of X-Square Capital, LLC since 2018. Chief Compliance Officer of X-Square Capital, LLC from 2015 to 2018. Secretary of the X-Square Municipal Income ETF since May 2023. |
| Jerald F. Wirzman<br> (1963) | Chief Compliance Officer since 2024 | Mr. Wirzman has been the Chief Compliance Officer for the Fund since 2024. Mr. Wirzman currently serves as Associate Director at SS&C Registered Fund Services. Prior to joining SS&C/ALPS in 2021, Mr. Wirzman served as Director of Compliance of Prudential Insurance Company of America beginning in February 2007. During his time at Prudential, Mr. Wirzman served as the Chief Compliance Officer to the Prudential Retirement and Annuity Company's Registered Insurance Retirement Products division. Prior to Prudential, Mr. Wirzman was a Vice President of Compliance at Goldman Sachs Asset Management and Goldman Sachs Hedge Fund Strategies. |

---

Annual Report \| December 31, 2025 27

X-Square Balanced Fund Privacy Policy

*December 31, 2025 (Unaudited)*

---

| | |
|:---|:---|
| **FACTS** | WHAT DOES THE FUND DO WITH YOUR PERSONAL INFORMATION? |
| **Why?** | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| **What?** | The types of personal information we collect and share depend on the product or service you have with us. This information can include: <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Social Security number<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Account transactions<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Account balances<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Transaction history<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Wire transfer instructions |
| **How?** | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons the Fund chooses to share; and whether you can limit this sharing. |

---

---

| | | |
|:---|:---|:---|
| **REASONS WE CAN SHARE YOUR PERSONAL INFORMATION** | **Does the Fund share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
| **For our marketing purposes —** to offer our products and services to you | No | We don't share |
| **For joint marketing with other financial companies** | No | We don't share |
| **For our affiliates' everyday business purposes —**<br> information about your transactions and experiences | Yes | No |
| **For our affiliates' everyday business purposes —**<br> information about your creditworthiness | No | We don't share |
| **For non-affiliates to market to you** | No | We don't share |

---

<u>QUESTIONS?</u> <u>Call or visit fund website</u>

28 www.xsquarecapital.com

X-Square Balanced Fund Privacy Policy

*December 31, 2025 (Unaudited)*

 

---

| | |
|:---|:---|
| **WHO WE ARE** | |
| **Who is providing this notice?** | X-Square Balanced Fund, LLC |
| **WHAT WE DO** |  |
| **How does the Fund protect my personal information?** | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. |
| **How does the Fund collect my personal information?** | We collect your personal information, for example, when you<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Open an account<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Provide account information<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Give us your contact information<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Make deposits or withdrawals from your account<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Make a wire transfer |
| **Why can't I limit all sharing?** | Federal law gives you the right to limit only: <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Sharing for affiliates' everyday business purposes – information about your creditworthiness<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Affiliates from using your information to market to you<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Sharing for non-affiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. |
| **DEFINITIONS** |  |
| **Affiliates** | Companies related by common ownership or control. They can be financial and nonfinancial companies. |
| **Non-affiliates** | Companies not related by common ownership or control. They can be financial and nonfinancial companies.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●*&nbsp;&nbsp;&nbsp;&nbsp;The Fund does not share with non-affiliates so they can market to you.* |
| **Joint marketing** | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;*The Fund doesn't jointly market.* |

---

Annual Report \| December 31, 2025 29

X-Square Balanced Fund Item 8 – Changes in and Disagreements with Accountants for Open-End Management Investment Companies

*December 31, 2025 (Unaudited)*

 

Not applicable for this reporting period.

30 www.xsquarecapital.com

X-Square Balanced Fund Item 9 – Proxy Disclosures for Open-End Management Investment Companies

*December 31, 2025 (Unaudited)*

 

Not applicable for this reporting period.

Annual Report \| December 31, 2025 31

X-Square Balanced Fund Item 10 – Remuneration Paid to Managers, Officers, and Others of Open-End Management Investment Companies

*December 31, 2025 (Unaudited)*

 

Included under Item 7 in the Notes to Financial Statements.

The following chart provides certain information about the Manager fees paid by the Fund for the year ended December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
| | **Aggregate Regular**<br> **Compensation From**<br> **the Fund** | **Aggregate Special**<br> **Compensation From**<br> **the Fund** | **Total Compensation**<br> **From the Fund** |
| Ramon Ponte | $12000 | $– | $12000 |
| Denisse Rodriguez | $12000 | $– | $12000 |
| Luis R. Roig Hosta | $12000 | $– | $12000 |
| **Total** | $**36000** | $**–** | $**36000** |

---

32 www.xsquarecapital.com

X-Square Balanced Fund Item 11 – Statement Regarding Basis for Approval of Investment Advisory Contract

*December 31, 2025 (Unaudited)*

 

In connection with a meeting held on November 14, 2025, the Board of Managers (the "Managers" or the "Board") of X-Square Balanced Fund, LLC (the "Fund"), including a majority of the Managers who are not "interested persons," as that term is defined in the Investment Company Act of 1940, as amended, discussed the renewal of the investment advisory agreement (the "Advisory Agreement") between X-Square Capital, LLC ("X2") and the Fund. In considering the renewal of the Advisory Agreement, the Board received materials specifically relating to the Advisory Agreement.

The Managers relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the Advisory Agreement and the weight to be given to each such factor. The conclusions reached by the Managers were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Moreover, each Manager may have afforded different weight to the various factors in reaching his or her conclusions with respect to the Advisory Agreement.

**Nature, Extent, and Quality of Services:** The Board noted that X-Square was a registered investment adviser since 2015 and that X-Square managed approximately $766 million in assets as of September 30, 2025. The Board reviewed the background information of X-Square's key investment professionals servicing the Fund, noting their educations and wide range of industry experience, and that the Fund had benefited from X-Square's experience and expertise. The Board acknowledged that X-Square's specialty was identifying unique investment opportunities based on their extensive knowledge of idiosyncratic themes, industry and market fundamentals, coupled with a strong liability and risk management framework. They considered X-Square's efforts and resources required to effectively allocate 60% of assets towards U.S. equity securities and a 40% towards fixed-income securities. The Board noted that X-Square selects broker-dealers based on best execution at the most favorable price and several other factors, and that X-Square has a Best Execution Committee that meets annually to assess factors influencing the execution of trades. The Board considered X-Square's cybersecurity policies and acknowledged Mr. Canto's assertion that X-Square's back-up systems and disaster recovery plan had proven effective in various circumstances. The Board noted that it appeared that X-Square's compliance program was working well, and that the Adviser did not report any material compliance or litigation issues in their responses. The Board discussed the routine regulatory examination of the Adviser. The Board also noted the X-Square maintained insurance, including cyber insurance. The Board concluded that X-Square had demonstrated that it was focused on providing high quality of service to the Fund and its shareholders.

**Performance:** The Board reviewed the performance of the Fund for various periods ended September 30, 2025, compared to peer group of comparable balanced funds, the S&P 500 Index, and 60% S&P 500 and 40% Bloomberg U.S. Aggregate Bond Index. The Board noted that the peer group constructed by X-Square was composed of funds with a similar investment mandate and local characteristics. The Managers acknowledged X-Square's explanation that although the Fund's outperformance relative to the peer group year-to-date and across all time periods, its performance is hindered due to the size of the Fund and expenses as a percentage of assets under management. The Board discussed that X-Square was working to raise additional assets to mitigate the drag on performance. After discussion, the Board concluded that X-Square had provided reasonable returns for the Fund and its shareholders.

Annual Report \| December 31, 2025 33

X-Square Balanced Fund Item 11 – Statement Regarding Basis for Approval of Investment Advisory Contract

*December 31, 2025 (Unaudited)*

**Fees and Expenses:** The Board acknowledged that X-Square's advisory fee for the Fund was higher than the average of its peer group but below the peer group high. The Board also noted that the X-Square's net expense ratio was higher than the average of its peer group but below the peer group high. The Board discussed the impact of the expense limitation agreement, and further recognized X-Square's explanation that many of the funds in its peer group had much larger assets than the Fund or were part of a larger fund family. Given these and other considerations, the Board concluded that X-Square's advisory fee for the Fund was not unreasonable.

**Profitability:** The Board reviewed X-Square's profitability analysis in connection with its management of the Fund and acknowledged that X-Square was earning a modest profit. The Board concluded that excessive profitability was not an issue for X-Square at this time.

**Economies of Scale:** The Board discussed the asset size of the Fund and its prospects for continued growth, concluding that it had not yet achieved meaningful economies that would necessitate the establishment of breakpoints. The Board recognized that X-Square agreed to discuss the implementation of breakpoints as the Fund's assets grew and X-Square achieved material economies of scale related to its operation. The Board agreed to monitor and revisit the issue at the appropriate time.

**Conclusion.** Having requested and received such information from X2 as the Board believed it to be reasonably necessary to evaluate the terms of the Advisory Agreement, and as assisted by the advice of counsel, concluded that renewal of the Advisory Agreement was in the best interests of the Fund and its shareholders.

*\** *Due to timing of the contract renewal schedule, these deliberations may or may not relate to the current performance results of the Fund.*

 

34 www.xsquarecapital.com

![](fp0097133-1_05.jpg)

**Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.**

None.

**Item 9.** **Proxy Disclosures for Open-End Management Investment Companies.**

None.

**Item 10.** **Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.**

Remuneration Paid to Directors, Officers, and Others is included as part of the Financial Statements and Financial Highlights filed under Item 7 of this report.

**Item 11.** **Statement Regarding Basis for Approval of Investment Advisory Contract.**

In connection with a meeting held on November 14, 2025, the Board of Managers (the "Managers" or the "Board") of X-Square Balanced Fund, LLC (the "Fund"), including a majority of the Managers who are not "interested persons," as that term is defined in the Investment Company Act of 1940, as amended, discussed the renewal of the investment advisory agreement (the "Advisory Agreement") between X-Square Capital, LLC ("X2") and the Fund. In considering the renewal of the Advisory Agreement, the Board received materials specifically relating to the Advisory Agreement.

The Managers relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the Advisory Agreement and the weight to be given to each such factor. The conclusions reached by the Managers were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Moreover, each Manager may have afforded different weight to the various factors in reaching his or her conclusions with respect to the Advisory Agreement.

<u>Nature, Extent, and Quality of Services</u>: The Board noted that X-Square was a registered investment adviser since 2015 and that X-Square managed approximately $766 million in assets as of September 30, 2025. The Board reviewed the background information of X-Square's key investment professionals servicing the Fund, noting their educations and wide range of industry experience, and that the Fund had benefited from X-Square's experience and expertise. The Board acknowledged that X-Square's specialty was identifying unique investment opportunities based on their extensive knowledge of idiosyncratic themes, industry and market fundamentals, coupled with a strong liability and risk management framework. They considered X-Square's efforts and resources required to effectively allocate 60% of assets towards U.S. equity securities and a 40% towards fixed-income securities. The Board noted that X-Square selects broker-dealers based on best execution at the most favorable price and several other factors, and that X-Square has a Best Execution Committee that meets annually to assess factors influencing the execution of trades. The Board considered X-Square's cybersecurity policies and acknowledged Mr. Canto's assertion that X-Square's back-up systems and disaster recovery plan had proven effective in various circumstances. The Board noted that it appeared that X-Square's compliance program was working well, and that the Adviser did not report any material compliance or litigation issues in their responses. The Board discussed the routine regulatory examination of the Adviser. The Board also noted the X-Square maintained insurance, including cyber insurance. The Board concluded that X-Square had demonstrated that it was focused on providing high quality of service to the Fund and its shareholders.

<u>Performance</u>: The Board reviewed the performance of the Fund for various periods ended September 30, 2025, compared to peer group of comparable balanced funds, the S&P 500 Index, and 60% S&P 500 and 40% Bloomberg U.S. Aggregate Bond Index. The Board noted that the peer group constructed by X-Square was composed of funds with a similar investment mandate and local characteristics. The Managers acknowledged X-Square's explanation that although the Fund's outperformance relative to the peer group year-to-date and across all time periods, its performance is hindered due to the size of the Fund and expenses as a percentage of assets under management. The Board discussed that X-Square was working to raise additional assets to mitigate the drag on performance. After discussion, the Board concluded that X-Square had provided reasonable returns for the Fund and its shareholders.

<u>Fees and Expenses</u>: The Board acknowledged that X-Square's advisory fee for the Fund was higher than the average of its peer group but below the peer group high. The Board also noted that the X-Square's net expense ratio was higher than the average of its peer group but below the peer group high. The Board discussed the impact of the expense limitation agreement, and further recognized X-Square's explanation that many of the funds in its peer group had much larger assets than the Fund or were part of a larger fund family. Given these and other considerations, the Board concluded that X-Square's advisory fee for the Fund was not unreasonable.

<u>Profitability</u>: The Board reviewed X-Square's profitability analysis in connection with its management of the Fund and acknowledged that X-Square was earning a modest profit. The Board concluded that excessive profitability was not an issue for X-Square at this time.

<u>Economies of Scale</u>: The Board discussed the asset size of the Fund and its prospects for continued growth, concluding that it had not yet achieved meaningful economies that would necessitate the establishment of breakpoints. The Board recognized that X-Square agreed to discuss the implementation of breakpoints as the Fund's assets grew and X-Square achieved material economies of scale related to its operation. The Board agreed to monitor and revisit the issue at the appropriate time.

<u>Conclusion</u>. Having requested and received such information from X2 as the Board believed it to be reasonably necessary to evaluate the terms of the Advisory Agreement, and as assisted by the advice of counsel, concluded that renewal of the Advisory Agreement was in the best interests of the Fund and its shareholders.

*\*Due to timing of the contract renewal schedule, these deliberations may or may not relate to the current performance results of the Fund.*

Item 12. **Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.**

Not applicable to Registrant.

Item 13. **Portfolio Managers of Closed-End Management Investment Companies.**

Not applicable to Registrant.

Item 14. **Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.**

Not applicable to Registrant.

Item 15. **Submission of Matters to 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 Managers, where those changes were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 16. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Controls and Procedures.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant's principal
 executive officer and principal financial officer have concluded that the Registrant's disclosure controls and procedures (as defined
 in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls
 and procedures as of a date within 90 days of the filing date of this report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There was no change in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d)
 under the Investment Company Act of 1940, as amended) during the period covered by this report that has materially affected, or is reasonably
 likely to materially affect, the Registrant's internal control over financial reporting.

Item 17. **Disclosure of Securities Lending Activities for Closed-end Management Investment Companies.**

Not applicable to Registrant.

Item 18. **Recovery of Erroneously Awarded Compensation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

Item 19. **Exhibits.**

(a)(1) [The Code of Ethics that applies to the Registrant's principal executive officer and principal financial officer required by Item 2 of Form N-CSR, is filed herewith.](fp0097133-1_ex99code.htm)

(a)(2) [The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.Cert.](fp0097133-1_ex99cert.htm)

(a)(3) Not applicable. <br>(a)(4) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [The certifications by the Registrant's principal executive officer and principal financial officer, as required by Rule 30a-2(b) of the Investment Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.906Cert.](fp0097133-1_ex99906cert.htm)

**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.

---

| | |
|:---|:---|
| X-Square Balanced Fund, LLC | X-Square Balanced Fund, LLC |
| By: | /s/ Ignacio Canto |
|  | Ignacio Canto |
|  | Principal Executive Officer/President |
| Date: | March 6, 2026 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below on behalf of the Registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| X-Square Balanced Fund, LLC | X-Square Balanced Fund, LLC |
| By: | /s/ Cristina Perez |
|  | Cristina Perez |
|  | Principal Financial Officer/Treasurer |
| Date: | March 6, 2026 |

---

## Ex-99.Code

**X-Square Balanced Fund, LLC<br> Code of Ethics for Principal Executive and Principal Financial Officers**

**1.** **Purpose of the Code** 

The X-Square Balanced Fund, LLC (the "Trust") code of ethics (this "Code") is intended to serve as the code of ethics described in Section 406 of The Sarbanes-Oxley Act of 2002 and Item 2 of Form N-CSR. This Code shall be the sole code of ethics adopted by the Fund for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Fund, the Fund's adviser(s), co-adviser(s), sub-adviser(s), principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers, as defined herein, who are subject to this Code, such policies and procedures are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Fund's, investment adviser's, and principal underwriter's codes of ethics pursuant to Rule 17j-1 under the Investment Company Act of 1940 (the "1940 Act") are separate requirements applying to the Covered Officers and others, and are not part of this Code.

All Covered Officers must become familiar and fully comply with this Code. Because this Code cannot and does not cover every applicable law or provide answers to all questions that might arise, all Covered Officers are expected to use common sense about what is right and wrong, including a sense of when it is proper to seek guidance from others on the appropriate course of conduct.

The purpose of this Code is to set standards for the Covered Officers that are reasonably designed to deter wrongdoing and to promote:

&nbsp;&nbsp;&nbsp;&nbsp;· honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional relationships;

&nbsp;&nbsp;&nbsp;&nbsp;· full, fair, accurate, timely, and understandable disclosure in reports
and documents that the Fund files with, or submits to, the Securities and Exchange Commission (the "SEC") and in any other
public communications by the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;· compliance with applicable governmental laws, rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;· the prompt internal reporting of violations of the Code to the appropriate
persons as set forth in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;· accountability for adherence to the Code.

**2.** **Covered Persons** 

This Code applies to the Fund's principal executive officers and principal financial officers, principal accounting officer or controller or any persons performing similar functions on behalf of the Fund (the "Covered Officers"). Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. Covered Officers are expected to act in accordance with the standards set forth in this Code.

**3.** **Honest and Ethical Conduct** 

&nbsp;&nbsp;&nbsp;&nbsp;A. Honesty, Diligence and Professional Responsibility

Covered Officers are expected to observe both the letter and the spirit of the ethical principles contained in this Code. Covered Officers must perform their duties and responsibilities for the Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· with honesty, diligence, and a commitment to professional and ethical
responsibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· carefully, thoroughly and in a timely manner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· in conformity with applicable professional and technical standards.

Covered Officers who are certified public accountants are expected to carry out their duties and responsibilities in a manner consistent with the principles governing the accounting profession, including any guidelines or principles issued by the Public Company Accounting Oversight Board or the American Institute of Certified Public Accountants from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;B. Objectivity/Avoidance of Undisclosed Conflicts of Interest

Covered Officers are expected to maintain objectivity and avoid undisclosed conflicts of interest. In the performance of their duties and responsibilities for the Fund, Covered Officers must not subordinate their judgment to personal gain and advantage, or be unduly influenced by their own interests or by the interests of others. Covered Officers must avoid participation in any activity or relationship that constitutes a conflict of interest unless that conflict has been completely disclosed to affected parties and waived by the Managers on behalf of the Fund. Further, Covered Officers should avoid participation in any activity or relationship that could create the appearance of an undisclosed conflict of interest.

A conflict of interest would generally arise if, for instance, a Covered Officer directly or indirectly participates in any investment, interest, association, activity or relationship that may impair or appear to impair the Covered Officer's objectivity or interfere with the interests of, or the Covered Officer's service to, the Fund.

Any Covered Officer who may be involved in a situation or activity that might be a conflict of interest or give the appearance of a conflict of interest must report such situation or activity using the reporting procedures set forth in Section 6 (Reporting and Accountability).

Each Covered Officer must not

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· use his or her personal influence or personal relationships improperly to influence investment decisions
or financial reporting by the Fund whereby the Covered Officer would benefit personally to the detriment of the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· cause the Fund to take action, or fail to take actions, for the individual personal benefit of the Covered
Officer rather than the benefit of the Fund; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· use material non-public knowledge of portfolio transactions made or contemplated for the Fund to trade
personally or cause others to trade personally in contemplation of the market effect of such transactions.

Each Covered Officer is responsible for his or her compliance with this conflict of interest policy.

&nbsp;&nbsp;&nbsp;&nbsp;C. Preparation of Financial Statements

Covered Officers must not knowingly make any misrepresentations regarding the Fund's financial statements or any facts in the preparation of the Fund's financial statements, and must comply with all applicable laws, standards, principles, guidelines, rules and regulations in the preparation of the Fund's financial statements. This section is intended to prohibit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· making, or permitting or directing another to make, materially false
or misleading entries in the Fund's financial statements or records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· failing
to correct the Fund's financial statements or records that are materially false or misleading when he or she has the authority to
record an entry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· signing, or permitting or directing another to sign, a document containing
materially false or misleading financial information.

Covered Officers must be scrupulous in their application of generally accepted accounting principles. No Covered Officer may (i) express an opinion or state affirmatively that the financial statements or other financial data of the Fund are presented in conformity with generally accepted accounting principles, or (ii) state that he or she is not aware of any material modifications that should be made to such statements or data in order for them to be in conformity with generally accepted accounting principles If in either case such Covered Officer knows or should know that such statements or data contain any departure from generally accepted accounting principles then in effect in the United States.

Covered Officers must follow the laws, standards, principles, guidelines, rules and regulations established by all applicable governmental bodies, commissions or other regulatory agencies in the preparation of financial statements, records and related information. If a Covered Officer prepares financial statements, records or related information for purposes of reporting to such bodies, commissions or regulatory agencies, the Covered Officer must follow the requirements of such organizations in addition to generally accepted accounting principles.

If a Covered Officer and his or her supervisor have a disagreement or dispute relating to the preparation of financial statements or the recording of transactions, the Covered Officer should take the following steps to ensure that the situation does not constitute an impermissible subordination of judgment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Covered Officer should consider whether (i) the entry or the failure
to record a transaction in the records, or (ii) the financial statement presentation or the nature or omission of disclosure in the financial
statements, as proposed by the supervisor, represents the use of an acceptable alternative and does not materially misrepresent the facts
or result in an omission of a material fact. If, after appropriate research or consultation, the Covered Officer concludes that the matter
has authoritative support and/or does not result in a material misrepresentation, the Covered Officer need do nothing further.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If the Covered Officer concludes that the financial statements or records
could be materially misstated as a result of the supervisor's determination, the Covered Officer should follow the reporting procedures
set forth in Section 6 (Reporting and Accountability).

&nbsp;&nbsp;&nbsp;&nbsp;D. Obligations in Dealing with the Independent Auditor of the Fund

In dealing with the Fund's independent auditor, Covered Officers must be candid and not knowingly misrepresent facts or knowingly fail to disclose material facts, and must respond to specific inquiries and requests by the Fund's independent auditor.

Covered Officers must not take any action, or direct any person to take any action, to fraudulently influence, coerce, manipulate or mislead the Fund's independent auditor in the performance of an audit of the Fund's financial statements for the purpose of rendering such financial statements materially misleading.

**4.** **Full, Fair, Accurate, Timely and Understandable Disclosure** 

The Fund's policy is to provide full, fair, accurate, timely, and understandable disclosure in reports and documents that the Fund files with, or submits to, the SEC and in any other public communications by the Fund. The Fund has designed and implemented Disclosure Controls and Procedures to carry out this policy.

Covered Officers are expected to familiarize themselves with the disclosure requirements generally applicable to the Fund, and to use their best efforts to promote, facilitate, and prepare full, fair, accurate, timely, and understandable disclosure in all reports and documents that the Fund files with, or submits to, the SEC and in any other public communications by the Fund.

Covered Officers must review the Fund's Disclosure Controls and Procedures to ensure they are aware of and carry out their duties and responsibilities in accordance with the Disclosure Controls and Procedures and the disclosure obligations of the Fund. Covered Officers are responsible for monitoring the integrity and effectiveness of the Fund's Disclosure Controls and Procedures.

**5.** **Compliance with Applicable Laws, Rules and Regulations** 

Covered Officers are expected to know, respect and comply with all laws, rules and regulations applicable to the conduct of the Fund's business. If a Covered Officer is in doubt about the legality or propriety of an action, business practice or policy, the Covered Officer should seek advice from the Covered Officer's supervisor or the Fund's legal counsel.

In the performance of their work, Covered Officers must not knowingly be a party to any illegal activity or engage in acts that are discreditable to the Fund.

Covered Officers are expected to promote the Fund's compliance with applicable laws, rules and regulations. To promote such compliance, Covered Officers may establish and maintain mechanisms to educate employees carrying out the finance and compliance functions of the Fund about any applicable laws, rules or regulations that affect the operation of the finance and compliance functions and the Fund generally.

**6.** **Reporting and Accountability** 

All Covered Officers will be held accountable for adherence to this Code. Each Covered Officer must, upon the Fund's adoption of this Code (or thereafter as applicable, upon becoming a Covered Officer or upon the effectiveness of an amendment to the Code as set forth in Section 9 (Amendment)), affirm in writing to the Board that he/she has received, read, and understands this Code by signing the Acknowledgement Form attached hereto as Appendix A. Thereafter, each Covered Officer, on an annual basis, must affirm to the Board that he/she has complied with the requirements of this Code by completing the Certification attached hereto as Exhibit B.

Covered Officers may not retaliate against any other Covered Officer of the Fund or their affiliated persons for reports of potential violations that are made in good faith.

The Fund will follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;· Any Covered Officer who knows of any violation of this Code or who questions whether a situation, activity
or practice is acceptable must immediately report such practice to the Fund's Chief Compliance Officer. The Chief Compliance Officer
shall take appropriate action to investigate any reported potential violations. If, after such investigation, the Chief Compliance Officer
believes that no violation has occurred, the Chief Compliance Officer is not required to take any further action. Any matter that the
Chief Compliance Officer believes is a violation will be reported to the Chairman of the Board of Managers. The Chief Compliance Officer
shall respond to the Covered Officer within a reasonable period of time.

&nbsp;&nbsp;&nbsp;&nbsp;· If the Covered Officer is not satisfied with the response of the Chief Compliance Officer, the Covered
Officer shall report the matter to the Chairman of the Board of Managers. If the Chairman is unavailable, the Covered Officer may report
the matter to any other member of the Board of Managers. The person receiving the report shall consider the matter, refer it to the full
Board of Managers if he or she deems appropriate, and respond to the Covered Officer within a reasonable amount of time. If the Board
of Managers concurs that a violation has occurred, it will consider appropriate action, which may include review of and appropriate modifications
to applicable policies and procedures or notification to appropriate personnel of the investment adviser or its board.

&nbsp;&nbsp;&nbsp;&nbsp;· If the Board of Managers determines that a Covered Officer violated this Code, failed to report a known
or suspected violation of this Code, or provided intentionally false or malicious information in connection with an alleged violation
of this Code, the Board of Managers may take disciplinary action against any such Covered Officer to the extent the Board of Managers
deems appropriate. No Covered Officer will be disciplined for reporting a concern in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;· To the extent possible and as allowed by law, reports will be treated as confidential. The Fund may report
violations of the law to the appropriate authorities.

**7.** **Disclosure of this Code** 

This Code, and any applicable waivers under Section 8 (Waivers) or amendments under Section 9 (Amendments), shall be disclosed to the public by at least one of the following methods in the manner prescribed by the SEC, and as otherwise required by law:

&nbsp;&nbsp;&nbsp;&nbsp;· filing a copy of this Code as an exhibit to the Fund's annual
report on Form N-CSR;

&nbsp;&nbsp;&nbsp;&nbsp;· posting the text of this Code on the Fund's Internet website and
disclosing, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted this Code on its Internet website;
or

&nbsp;&nbsp;&nbsp;&nbsp;· providing an undertaking in the Fund's most recent report on Form
N-CSR to provide a copy of this Code to any person without charge upon request, and explaining the manner in which such a request may
be made.

**8.** **Waivers** 

Any waiver of this Code, including an implicit waiver, granted to a Covered Officer may be made only by the Board of Managers or a committee of the Board to which such responsibility has been delegated, and must be disclosed by the Fund in the manner prescribed by law and as set forth above in Section 7 (Disclosure of this Code).

**9.** **Amendments** 

This Code may be amended by the affirmative vote of a majority of the Board of Managers, including a majority of the independent Managers. Any amendment of this Code must be disclosed by the Fund in the manner prescribed by law and as set forth above in Section 7 (Disclosure of this Code), unless such amendment is deemed to be technical, administrative, or otherwise non-substantive. Any amendments to this Code will be provided to the Covered Officers promptly upon adoption, as well as a new Acknowledgment Form.

**10.** **Confidentiality** 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board of Managers of the Fund, the Chief Compliance Officer of the Fund, the legal counsel to the Fund, legal counsel to the independent managers and such other persons as a majority of the Board of Managers, including a majority of the independent Managers, shall determine to be appropriate.

*Adopted: January 29, 2019*

*Amended: February 23.2024* Added Exhibit B

**Appendix A**

**X-Square Balanced Fund, LLC**

Certification and Acknowledgment of Receipt of Code of Ethics for Principal Executive Officers and Principal Financial Officers

I acknowledge and certify that I have received a copy of X-Square Balanced Fund, LLC's Code of Ethics for Principal Executive Officers and Principal Financial Officers (the "Code"). I understand and agree that it is my responsibility to read and familiarize myself with the policies and procedures contained in the Code and to abide by those policies and procedures.

I acknowledge and certify that I have read and understand the Code.

---

| | |
|:---|:---|
| Date | Print Name |
|  | Signature |

---

<u>**Appendix B**</u>

Certification of Compliance with Code of Ethics for Principal Executive Officers and Principal Financial Officers

I certify that I have complied with the requirements of the X-Square Balance Fund, LLC Code of Ethics for Principal Executive Officers and Principal Financial Officers (the "Code").

Name:<u> </u> <br>Date:<u> </u>   Signature:<u> </u>

## Ex-99.Cert

**Exhibit 99.Cert**

I, Ignacio Canto, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of X-Square Balanced
Fund, LLC (the "Registrant") ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this
report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in the report any change in the Registrant's internal control over financial reporting
that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Registrant's other certifying officer(s) and I have
disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing
the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and
report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the Registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| X-Square Balanced Fund, LLC | X-Square Balanced Fund, LLC |
| By: | /s/ Ignacio Canto |
|  | Ignacio Canto |
|  | Principal Executive Officer/President |
| Date: | March 6, 2026 |

---

I, Cristina Perez, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of X-Square Balanced
Fund, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this
report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in the report any change in the Registrant's internal control over financial reporting
that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Registrant's other certifying officer(s) and I have
disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing
the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and
report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the Registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| X-Square Balanced Fund, LLC | X-Square Balanced Fund, LLC |
| By: | /s/ Cristina Perez |
|  | Cristina Perez |
|  | Principal Financial Officer/Treasurer |
| Date: | March 6, 2026 |

---

## Exhibit 99.906

Exhibit 99.906Cert

This certification is furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR (the "Report") for the period ended December 31, 2025 (the "Form N-CSR") of X-Square Balanced Fund, LLC (the "Company").

I, Ignacio Canto, the President of the Company, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Registrant's periodic report on Form N-CSR for the period ended December 31, 2025 fully complies
with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the information contained in the Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.

---

| | |
|:---|:---|
| Dated: | March 6, 2026 |
| By: | /s/ Ignacio Canto |
|  | Ignacio Canto |
|  | Principal Executive Officer/President |

---

This certification is furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR (the "Report") for the period ended December 31, 2025 (the "Form N-CSR") of X-Square Balanced Fund, LLC (the "Company").

I, Cristina Perez, the Principal Financial Officer/Treasurer of the Company, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Registrant's periodic report on Form N-CSR for the period ended December 31, 2025 fully complies
with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the information contained in the Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.

---

| | |
|:---|:---|
| Dated: | March 6, 2026 |
| By: | /s/ Cristina Perez |
|  | Cristina Perez |
|  | Principal Financial Officer/Treasurer |

---