Form N-CSRS KIRR MARBACH PARTNERS For: Mar 31

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 811-09067

Kirr, Marbach Partners Funds, Inc.
(Exact name of registrant as specified in charter)

621 Washington Street, Columbus, IN 47201
(Address of principal executive offices) (Zip code)

Kirr, Marbach & Company, LLC, 621 Washington Street, Columbus, IN 47201
(Name and address of agent for service)

Registrant's telephone number, including area code

Date of fiscal year end: September 30, 2023

Date of reporting period:  March 31, 2023

(a)

Kirr, Marbach Partners

Value Fund

KIRR, MARBACH PARTNERS

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VALUE FUND

“What we anticipate seldom occurs; what we least expected generally happens”

— Benjamin Disraeli

May 10, 2023

 

Dear Fellow Shareholders:

 

As we stated in our letter for the fiscal year ending September 30, 2022, the financial markets and economy had been hit by their own metaphorical Hurricane Ian in 2022, with stocks firmly in “bear market” territory (down more than 20%).  Fortunately, U.S. stocks and Value Fund posted strong recoveries in the ensuing six-month period ending March 31, 2023.  As you can see in the table below, Value Fund significantly outperformed the S&P 500 for the six-months.  We are particularly pleased with performance because Strategas Research Partners calculated ten big technology stocks accounted for 90% of the gain ($2.094 trillion of the $2.336 trillion increase in the S&P 500’s market capitalization) during the three-months ending March 31, 2023.  Fortunately, Value Fund owns Alphabet Inc. and Broadcom, Inc.. Because the advance was extremely narrow, actively-managed funds (like Value Fund) faced a stiff challenge.

 

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KIRR, MARBACH PARTNERS

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VALUE FUND

Priods ending March 31, 2023⁽³⁾

(Total Returns-Dividends Reinvested in Index-Annualized*)

 

 The Fund’s Gross Expense Ratio and Net Expense Ratio were 1.66% and 1.45%, respectively, according to the Prospectus dated January 27, 2023.  Contractual fee waivers are in effect until February 28, 2024.

 

Performance data quoted represents past performance; past performance is no guarantee of future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Current performance of the fund may be lower or higher than the performance quoted.  Performance data current to the most recent month-end may be obtained by calling 1-800-870-8039.  The fund imposes a 1.00% redemption fee on shares held less than 30 days.  Performance data quoted does not reflect the redemption fee.  If reflected, total returns would be reduced.

 

 

Fed Policy and the Economy

 

Way back in June of 2020 the U.S. economy was still very much in the grips of the pandemic.  Backed by the work and expertise of its 400 PhD economists, Fed officials confidently predicted that by 2022 the U.S. would still be facing 5.5% unemployment and inflation would be running at 1.7%, below its target of 2%.  Further, Fed officials expected to keep interest rates close to 0% through the end of 2022.  As Fed Chair Jerome Powell famously stated at the time, “we’re not even thinking about thinking about raising rates.”  Think about that!

 

Fast forward and the CPI (Consumer Price Index) peaked at a 40-year high of 9.1% in June of 2022 and unemployment has been running at 50-year lows, around 3.5%.  In March of 2022, the Fed slammed on the brakes on its “accommodative” monetary policy and abruptly reversed course to “restrictive,” rapidly increasing short-term interest rates from essentially 0% at the start of 2022 to 4.5% at the end of 2022 (currently 5%), the most aggressive cycle of rate increases since the early 1980s.  During this campaign, Fed officials have 1) made it clear slaying inflation is their top priority and 2) expressed confidence they can achieve this without putting the economy through the windshield (tell that to Silicon Valley Bank).

 

Several economic indicators we look at show the economy is slowing.  The illustration below shows the Conference Board Leading Economic Index (LEI—comprised of ten components) has rolled over.  The LEI fell by 0.3% in February (most recent reading), its eleventh consecutive monthly decline.  An inverted yield curve occurs when short-term U.S. Treasury yields exceed long-term yields, indicating investors think the economy will be weaker and interest rates lower in the future.  The yield curve has now been inverted for four consecutive quarters, with the gap between the two-year and ten-year yields of 1.07% on March 8 the biggest

 

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KIRR, MARBACH PARTNERS

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 inversion since 1981.  Since an inversion has preceded every recent recession, many investors view an inversion as a precursor to a recession.  However, not every inversion has been a harbinger of recession.  Every salmon is a fish, but not every fish is a salmon.

 

The National Bureau of Economic Research (NBER) is the authority determining the start and end of U.S. recessions, defined as a “significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production and wholesale-retail sales.”  The NBER’s pronouncements are based on both a “squishy” definition and backward-looking data, so we would not be surprised if it turns out we’re already in a recession.

 

There are a million factors that impact the economy, many of which are dependent on other factors.  This makes the economy impossible to predict with any accuracy, but people like the 400 PhDs at the Fed still try!  That doesn’t give us a whole lot of confidence in their predictions.

 

Cash earning 4% is nice for now, but it’s NOT an investment

 

As our good friend Jay Mooreland, CFP of the Behavioral Finance Network says, moving to Cash during uncertain times is nothing more than trading potential long-term growth for temporary relief from negative news and stock price fluctuations.  It is not investing.

 

 

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KIRR, MARBACH PARTNERS

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VALUE FUND

Investing is owning securities for the long-term with recognition the capital markets have always been uncertain and experienced fluctuation.  We never make predictions, especially in writing, but are pretty sure the possible breaching of the U.S. debt ceiling will be in the headlines before too long.  Investors enter the “game” understanding uncertainty and temporary negative returns are the price one must pay to participate in the long-term wealth generating power of capital markets.

 

Summary

 

Investors were subject to a full-blown banking crisis in March, as Silvergate Bank, Silicon Valley Bank and Signature Bank all failed and threatened to take the regional bank sector down with them.  The contagion threatened to go global and Swiss authorities were forced to arrange a hasty “shotgun wedding” between behemoths UBS and Credit Suisse. This “out of the blue” crisis reinforced a couple important points:

 

 

Percent Change in Top Ten Holdings from Book Cost (as of 3/31/2023)

 

Performance quoted represents past performance and is no guarantee of future results.

 

Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security.

 

Regards,

 

Past performance is not a guarantee of future results.

 

Mutual fund investing involves risk.  Principal loss is possible.

 

Value Fund invests in foreign securities, which involves greater volatility and political, economic and currency risks and differences in accounting methods.  Value Fund may also invest in small- and medium-capitalization companies, which tend to have more limited liquidity and greater price volatility than large-capitalization companies.

 

The Conference Board Leading Economic Index^® (LEI) for the U.S. is one of the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading, coincident, and lagging economic indexes are essentially composite averages of several individual leading, coincident, or lagging indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.  The ten components of Leading Economic Index for the U.S. include:

 

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KIRR, MARBACH PARTNERS

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Average weekly hours, manufacturing

Average weekly initial claims for unemployment insurance

Manufacturers’ new orders, consumer goods and materials

ISM Index of New Orders

Manufacturers’ new orders, nondefense capital goods excluding aircraft orders

Building permits, new private housing units

Stock prices, 500 common stocks

Leading Credit Index^™

Interest rate spread, 10-year Treasury bonds less federal funds

Average consumer expectations for business conditions

 

Please refer to the Schedule of Investments for complete fund holdings information.

 

The information provided herein represents the opinion of Value Fund’s investment adviser and is not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

 

This material must be preceded or accompanied by a current Prospectus.

 

Quasar Distributors, LLC is the Distributor for Value Fund.

 

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KIRR, MARBACH PARTNERS

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VALUE FUND

Value of $10,000 Investment (Unaudited)

This chart assumes an initial investment of $10,000. Performance reflects fee waivers in effect. In the absence of fee waivers, total return would be reduced. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed maybe worth more or less than their original cost. Performance assumes the reinvestment of capital gains and income distributions. The performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

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KIRR, MARBACH PARTNERS

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Expense Example

March 31, 2023 (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2022 – March 31, 2023).

 

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. Although the Fund charges no sales load or transaction fees, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, the Fund’s transfer agent. If you request that a redemption be made by wire transfer, currently a $15.00 fee is charged by the Fund’s transfer agent. You will be charged a transaction fee equal to 1.00% of the net amount of the redemption if you redeem your shares within 30 days of purchase. IRA accounts will be charged a $15.00 annual maintenance fee. To the extent the Fund invests in shares of other investment companies as part of its investment strategy, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying funds in which the Fund invests in addition to the expenses of the Fund. Actual expenses of the underlying funds are expected to vary among the various underlying funds. These expenses are not included in the example below. The example below includes, but is not limited to, management fees, shareholder servicing fees, fund accounting, custody and transfer agent fees. However, the example below does not include portfolio trading commissions and related expenses, interest expense and other extraordinary expenses as determined under generally accepted accounting principles. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

 

Hypothetical Example For Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

 

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KIRR, MARBACH PARTNERS

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VALUE FUND

Allocation of Portfolio Net Assets (Unaudited)

March 31, 2023

Top Ten Equity Holdings (Unaudited)

as of March 31, 2023

(% of net assets)

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KIRR, MARBACH PARTNERS

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VALUE FUND

Schedule of Investments

March 31, 2023 (Unaudited)

See Notes to the Financial Statements

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KIRR, MARBACH PARTNERS

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Statement of Assets and Liabilities

March 31, 2023

(Unaudited)

Statement of Operations

Six Months Ended March 31, 2023

(Unaudited)

See Notes to the Financial Statements

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KIRR, MARBACH PARTNERS

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VALUE FUND

Statements of Changes in Net Assets

See Notes to the Financial Statements

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KIRR, MARBACH PARTNERS

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VALUE FUND

Financial Highlights

For a Fund share outstanding throughout the period.

See Notes to the Financial Statements

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KIRR, MARBACH PARTNERS

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VALUE FUND

Notes to the Financial Statements

March 31, 2023 (Unaudited)

 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

 

Kirr, Marbach Partners Funds, Inc. (the “Corporation”) was organized as a Maryland corporation on September 23, 1998 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end diversified management investment company issuing its shares in series, each series representing a distinct portfolio with its own investment objective and policies. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 “Financial Services-Investment Companies.” The one series presently authorized is Kirr, Marbach Partners Value Fund (the “Fund”). The investment objective of the Fund is to seek long-term capital growth. The Fund commenced operations on December 31, 1998.

 

The following is a summary of significant accounting policies consistently followed by the Fund.  These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”).

 

 

 

 

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KIRR, MARBACH PARTNERS

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VALUE FUND

 

Notes to the Financial Statements (Continued)

March 31, 2023 (Unaudited)

 

 

 

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KIRR, MARBACH PARTNERS

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Notes to the Financial Statements (Continued)

March 31, 2023 (Unaudited)

 2. INVESTMENT TRANSACTIONS

 

The aggregate purchases and sales of securities, excluding short-term investments, by the Fund for the period ended March 31, 2023 were as follows:

 

 

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KIRR, MARBACH PARTNERS

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VALUE FUND

 Notes to the Financial Statements (Continued)

March 31, 2023 (Unaudited)

 

At September 30, 2022, the Fund’s most recently completed fiscal year end, the components of distributable earnings on a tax basis were as follows:

 

As of September 30, 2022, the Fund’s most recently completed fiscal year end, the Fund did not have any capital loss carryovers.  A regulated investment company may elect for any taxable year to treat any portion of any qualified late year loss as arising on the first day of the next taxable year.  Qualified late year losses are certain capital, and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31.  For the taxable year ended September 30, 2022, the Fund had $438,159 in qualified late year losses.

 

The tax character of distributions paid during the period ended March 31, 2023, were as follows:

 

 The tax character of distributions paid during the year ended September 30, 2022, were as follows:

 

 3. AGREEMENTS

 

The Fund has entered into an Investment Advisory Agreement with Kirr, Marbach & Company, LLC (the “Investment Adviser”). Pursuant to its advisory agreement with the Fund, the Investment Adviser is entitled to receive a fee, calculated daily and payable monthly, at the annual rate of 1.00% as applied to the Fund’s daily net assets.

 

The Investment Adviser has contractually agreed to waive its management fee and/or reimburse the Fund’s other expenses to the extent necessary to ensure that the Fund’s total annual operating expenses (excluding acquired fund fees and expenses, interest, taxes, brokerage commissions and extraordinary expenses) do not exceed 1.45% of its average daily net assets until February 28, 2024.  The Investment Adviser may decide to continue the agreement, or revise the total annual operating expense limitations after February 28, 2024. Any waiver or reimbursement is subject to later adjustment to allow the Investment Adviser to recoup amounts waived or reimbursed to the extent actual fees and expenses for a period are less than the expense limitation

 

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KIRR, MARBACH PARTNERS

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VALUE FUND

 

Notes to the Financial Statements (Continued)

March 31, 2023 (Unaudited)

 

cap of 1.45%, provided, however, that the Investment Adviser shall only be entitled to recoup such amounts for a period of thirty-six months following the date on which such fee waiver or expense reimbursement was made. Waived/reimbursed fees and expenses subject to potential recovery by month of expiration are as follows:

 

As of March 31, 2023, it was possible, but not probable, those amounts would be recovered by the Investment Adviser. At the end of each fiscal year in the future, the Fund will continue to assess the potential recovery of waived/reimbursed fees and expenses for financial reporting purposes.

 

Quasar Distributors, LLC, (the “Distributor”), a wholly-owned broker-dealer subsidiary of Foreside serves as principal underwriter of the shares of the Fund and is not affiliated with U.S. Bancorp. The Board of Trustees of the Fund has approved a new Distribution Agreement to enable Quasar to continue serving as the Fund’s distributor. The Fund’s shares are sold on a no-load basis and, therefore, the Distributor receives no sales commission or sales load for providing services to the Fund. The Corporation has adopted a plan pursuant to Rule 12b-1 under the 1940 Act (the “12b-1 Plan”), which authorizes the Corporation to pay the Distributor and certain financial intermediaries who assist in distributing the Fund shares or who provided shareholder services to Fund shareholders a distribution and shareholder servicing fee of up to 0.25% of the Fund’s average daily net assets (computed on an annual basis). All or a portion of the fee may be used by the Fund or the Distributor to pay its distribution fee and costs of printing reports and prospectuses for potential investors and the costs of other distribution and shareholder servicing expenses. During the period ended March 31, 2023, the Fund incurred expenses of $25,005 pursuant to the 12b-1 Plan.

 

U.S Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (the “Administrator”), serves as transfer agent, administrator and accounting services agent for the Fund. U.S. Bank, N.A. serves as custodian for the Fund.

 

The Fund imposes a 1.00% redemption fee on shares held 30 days or less. For the period ended March 31, 2023 and the year ended September 30, 2022, the Fund collected $0 and $1, respectively, in redemption fees.

 

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KIRR, MARBACH PARTNERS

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VALUE FUND

Additional Information

March 31, 2023 (Unaudited)

BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENT

 

On November 16, 2022, at an in-person meeting of the Board of Directors of the Kirr, Marbach Partners Fund, Inc. (the “Corporation”), the directors, including a majority of the disinterested directors, approved the continuation of the investment advisory agreement dated June 10, 2005 (the “Advisory Agreement”) between the Corporation and Kirr, Marbach & Company, LLC (the “Adviser”).  It was noted that, as described in the Adviser’s memorandum, the Adviser has significant experience providing investment advice and is qualified to provide investment advisory services to the Fund.  In addition, it was noted that the Adviser promoted a culture of compliance.  The directors noted the Fund had lagging returns versus its benchmark.  The directors considered the Adviser’s explanation for the Fund’s underperformance, as well as the Adviser’s value-based philosophy and  long-term history of rebounding from periods of underperformance.  The directors also noted that a significant percentage of the Fund is owned by Adviser insiders and therefore the directors feel that the Adviser’s interests are aligned with other Fund shareholders.  The directors considered information relating to the Fund’s fees, costs and expense ratios and compared such fees, costs and expense ratios to competitive industry fee structures and expense ratios. Specifically, the directors reviewed charts prepared by the administrator based on data compiled by a nationally recognized third-party comparative data provider.  In connection with this, the directors also considered the control of the Fund’s operating expenses through the expense cap agreement and noted that the current expense cap agreement maintains an overall reasonable total expense level as evidenced by the comparative data presented at the meeting.  In addition, the Board noted that the Adviser is providing substantially similar investment advisory services to the Fund and its other separate account clients and, with the current expense cap arrangement in place, is providing such services to the Fund at substantially similar rates to those charged to the Adviser’s other clients.  The directors considered whether the Adviser would receive any fall-out benefits through its relationship with the Fund, and it was noted that because none of the other service providers to the Fund are affiliated with the Adviser, there are no identifiable material fall-out benefits accruing to the Adviser.  The directors considered the Adviser’s cost of providing services to the Fund and the profitability of its relationship to the Fund.  It was noted that the Adviser’s profitability was in line with its profitability for providing investment advice to its separate account clients given the current expense cap agreement, and the directors noted that the Adviser’s profit in connection with its services to the Fund appeared reasonable.  The directors considered whether economies of scale were being realized that could justify reduced expenses for the Fund.  It was noted that current asset levels decreased from the prior year.  During the deliberations, the disinterested directors did not identify any single consideration or particular piece of information that was all important or controlling in determining whether to approve the Advisory Agreement.  The disinterested directors evaluated all information presented to them and determined that the compensation paid to the Adviser under the Advisory Agreement was fair and reasonable in light of the services to be performed.

 

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KIRR, MARBACH PARTNERS

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Additional Information (Continued)

March 31, 2023 (Unaudited)

 

STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM

 

Kirr Marbach & Company, LLC, as liquidity risk management program administrator and Adviser to the Fund provided an annual report to the Board on the adequacy of the Adviser’s Liquidity Risk Management Program (LRMP) and the effectiveness of its implementation at the Board’s Quarterly meeting on November 16, 2022. At that Meeting, the Adviser discussed with the Board its annual review and assessment of the Fund’s liquidity risk in accordance with, and taking into account the factors identified in the LRMP, and confirmed to the Board the following information related to the LRMP.

 

 

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KIRR, MARBACH PARTNERS

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VALUE FUND

Additional Information (Continued)

March 31, 2023 (Unaudited)

 

AVAILABILITY OF FUND PORTFOLIO INFORMATION

 

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT, which is available on the SEC’s website at www.sec.gov. The Fund’s Part F of Form N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C.  For information on the Public Reference Room call 1-800-SEC-0330.

 

 AVAILABILITY OF PROXY VOTING INFORMATION

 

Both a description of the Fund’s Proxy Voting Policies and Procedures and information about the Fund’s proxy voting record will be available (1) without charge, upon request, by calling 1-800-870-8039, and (2) on the SEC’s website at www.sec.gov.

 

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Directors

Mark Foster, CFA

Mickey Kim, CFA

Jeffrey N. Brown

John Elwood

Thomas J. Thornburg

Principal Officers

Mark D. Foster, CFA, President

Mickey Kim, CFA, Vice President, Treasurer and Secretary

Investment Adviser

Kirr, Marbach & Company, LLC

621 Washington Street

Columbus, IN 47201

Distributor

Quasar Distributors, LLC

111 East Kilbourn Ave., Suite 2200

Milwaukee, WI 53202

Custodian

U.S. Bank, N.A.

1555 North RiverCenter Drive, Suite 302

Milwaukee, WI 53212

Administrator, Transfer Agent And

Dividend – Disbursing Agent

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, WI 53202

Independent Registered Public Accounting Firm

Tait, Weller & Baker LLP

Two Liberty Place

50 South 16th Street, Suite 2900

Philadelphia, PA 19102

Legal Counsel

Kirkland & Ellis LLP

300 North LaSalle

Chicago, IL 60654

This report should be accompanied or preceded by a prospectus.

 

The Fund’s Statement of Additional Information contains additional information about the

 Fund’s directors and is available without charge upon request by calling 1-800-808-9444.

 

The Fund’s Proxy Voting Policies and Procedures are available without charge upon request by calling 1-800-808-9444.  A description of the Fund’s proxy voting policies and procedures is available on the Fund’s website, www.kmpartnersfunds.com, or on the SEC’s website, at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the twelve months ended June 30, is available without charge upon request by calling 1-800-808-9444 or on the SEC's website, at www.sec.gov.

 

Semi-Annual Report

 

March 31, 2023

 

(b)	Not applicable.

Not applicable for semi-annual reports.

Not applicable for semi-annual reports.

Not applicable for semi-annual reports.

Not applicable for semi-annual reports.

(a)	Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

(b)	Not applicable

Not applicable to open-end investment companies.

Not applicable to open-end investment companies.

Not applicable to open-end investment companies.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

(a)

The Registrant’s President and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934.  Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)

There were no significant changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) 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.

Not applicable to open-end investment companies.

(a)	(1) Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not applicable for semi-annual reports.

(3) Any written solicitation to purchase securities under Rule 23c‑1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.  Not applicable to open-end investment companies.

(4) Change in the registrant’s independent public accountant.  There was no change in the registrant’s independent public accountant for the period covered by this report.

(b)	Certification pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.  Furnished herewith.

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.

(Registrant)                            Kirr, Marbach Partners Funds, Inc.

By (Signature and Title)*       /s/ Mr. Mark Foster

Mr. Mark Foster, President

Date    June 6, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Mr. Mark Foster, President

Date    June 6, 2023

Mr. Mickey Kim, Treasurer

Date    June 6, 2023