The Oakmark Family of Funds

Statement of Operations—September 30, 1997

The Oakmark Fund The Oakmark
Select Fund
Eleven Months Ended
September 30, 1997		 Year Ended
October 31, 1996		 Eleven Months Ended
September 30, 1997
Investment Income:
Dividends $    77,106,315 $    69,419,537 $     1,339,457
Interest Income 29,568,476 15,845,858 807,368
Securities lending income 0 0 24,860
Foreign taxes withheld         (437,022)         (284,360)                     0
Total investment income 106,237,769 84,981,035 2,171,685
Expenses:
Investment advisory fee 43,705,462 36,082,925 1,731,599
Transfer and dividend disbursing agent fees 2,928,155 4,398,544 199,956
Other shareholder servicing fees 1,330,861 726,744 92,245
Custodian and accounting fees 539,126 439,430 52,436
Reports to shareholders 986,143 836,558 32,350
Registration and blue sky expenses 560,527 573,243 246,615
Trustees fees 97,930 69,705 21,354
Legal fees 41,590 46,842 11,888
Audit fees 21,527 17,176 18,988
Amortization of organization cost 0 23,768 649
Other            182,088 213,020 13,185
Total expenses 50,393,409 43,427,955 2,421,265
Expense reimbursement 0 0 0
Expense offset arrangements         (13,986) (15,263) (2,694)
Net expenses         50,379,423 43,412,692 2,418,571
Net Investment Income (loss): 55,858,346 41,568,343 (246,886)
Net realized and unrealized gain (loss) on investments and foreign currency transactions:
Net realized gain on investments 239,442,987 226,166,113 5,070,435
Net realized gain (loss) on foreign currency transactions (2,673) (12,777) 0
Net change in unrealized appreciation (depreciation) of investments and foreign currencies 1,231,138,352 290,431,755 87,675,167
Net change in appreciation of forward currency exchange contracts 0 0 0
Net change in appreciation (depreciation)—other 0 0 0
Net realized and unrealized gain on investments and foreign currency transactions: 1,470,578,666 516,585,091 92,745,602
Net increase in net assets resulting from operations $ 1,526,437,012 $ 558,153,434 $ 92,498,716




The Oakmark
Small Cap Fund		 The Oakmark
Equity and
Income Fund
Eleven Months Ended
September 30, 1997		 Year Ended
October 31, 1996		 Eleven Months Ended
September 30, 1997		 Year Ended
October 31, 1996
Investment Income:
Dividends $ 4,339,208 $ 930,817 $ 273,805 $ 118,500
Interest Income 3,154,500 302,068 488,081 261,357
Securities lending income 129,169 19,400 5,782 3,897
Foreign taxes withheld 0 0 0 0
Total investment income 7,622,877 1,252,285 767,668 383,754
Expenses:
Investment advisory fee 7,705,828 956,809 140,973 69,005
Transfer and dividend disbursing agent fees 548,450 250,126 53,123 45,412
Other shareholder servicing fees 333,788 23,906 2,999 807
Custodian and accounting fees 125,794 36,616 38,753 23,552
Reports to shareholders 140,375 26,164 5,572 3,694
Registration and blue sky expenses 371,079 181,799 42,393 83,142
Trustees fees 32,359 13,688 21,778 12,749
Legal fees 16,048 10,970 8,595 10,285
Audit fees 16,733 21,034 17,477 20,075
Amortization of organization cost 1,333 1,457 1,333 0
Other 33,819 6,234 3,208 3,975
Total expenses 9,325,606 1,528,803 336,204 272,696
Expense reimbursement 0 0 (39,450) (14,245)
Expense offset arrangements (18,290) (318) (830) (225)
Net expenses 9,307,316 1,528,485 295,924 258,226
Net Investment Income (loss): (1,684,439) (276,200) 471,744 125,528
Net realized and unrealized gain (loss) on investments and foreign currency transactions:
Net realized gain (loss) on investments 46,501,798 (243,291) 904,824 161,939
Net realized gain (loss) on foreign currency transactions 0 0 0 0
Net change in unrealized appreciation (depreciation) of investments and foreign currencies 287,859,202 20,102,753 4,554,518 903,718
Net change in appreciation of forward currency exchange contracts 0 0 0 0
Net change in appreciation (depreciation)—other 0 0 0 0
Net realized and unrealized gain on investments and foreign currency transactions: 334,361,000 19,859,462 5,459,342 1,065,657
Net increase in net assets resulting from operations $ 332,676,561 $ 19,583,262 $ 5,931,086 $ 1,191,185




The Oakmark
International Fund
Eleven Months Ended
September 30, 1997		 Year Ended
October 31, 1996
Investment Income:
Dividends $ 42,650,820 $ 29,460,152
Interest Income 3,977,499 1,708,929
Securities lending income 1,300,955 376,919
Foreign taxes withheld (3,703,472) (3,243,211)
Total investment income 44,225,802 28,302,789
Expenses:
Investment advisory fee 13,040,702 10,113,272
Transfer and dividend disbursing agent fees 864,936 1,298,501
Other shareholder servicing fees 582,891 382,248
Custodian and accounting fees 1,482,615 1,306,439
Reports to shareholders 381,555 215,584
Registration and blue sky expenses 100,480 14,675
Trustees fees 42,602 28,936
Legal fees 17,155 19,589
Audit fees 24,851 22,047
Amortization of organization cost 8,394 9,516
Other 36,031 75,039
Total expenses 16,582,212 13,485,846
Expense reimbursement 0 0
Expense offset arrangements (22,793) (6,181)
Net expenses 16,559,419 13,479,665
Net Investment Income: 27,666,383 14,823,124
Net realized and unrealized gain (loss) on investments and foreign currency transactions:
Net realized gain on investments 217,090,057 2,806,950
Net realized gain (loss) on foreign currency transactions 17,724,883 (1,017,660)
Net change in unrealized appreciation of investments and foreign currencies 70,717,122 176,382,416
Net change in appreciation of forward currency exchange contracts 3,426,674 5,165,941
Net change in appreciation (depreciation)—other 197,532 (363,425)
Net realized and unrealized gain on investments and foreign currency transactions: 309,156,268 182,974,222
Net increase in net assets resulting from operations $ 336,822,651 $ 197,797,346




The Oakmark
International Fund
Eleven Months Ended
September 30, 1997		 Year Ended
October 31, 1996
Investment Income:
Dividends $ 1,640,601 $ 744,076
Interest Income 162,175 70,932
Securities lending income 25,268 5,649
Foreign taxes withheld (166,750) (70,675)
Total investment income 1,661,294 749,982
Expenses:
Investment advisory fee 648,148 258,427
Transfer and dividend disbursing agent fees 84,030 93,991
Other shareholder servicing fees 20,211 4,347
Custodian and accounting fees 138,829 103,589
Legal fees 8,973 10,288
Audit fees 21,830 24,187
Trustees fees 22,456 12,970
Registration and blue sky expenses 45,799 112,215
Reports to shareholders 20,333 9,933
Amortization of organization cost 1,333 1,457
Other 4,128 3,297
Total expenses 1,016,070 634,701
Expense reimbursement 0 (35,441)
Expense offset arrangements (824) (4,379)
Net expenses 1,015,246 594,881
Net Investment Income: 646,048 155,101
Net realized and unrealized gain (loss) on investments and foreign currency transactions:
Net realized gain on investments 6,250,624 1,284,213
Net realized loss on foreign currency transactions (232,740) (24,656)
Net change in unrealized appreciation (depreciation) of investments and foreign currencies (1,464,546) 296,393
Net change in appreciation of forward currency exchange contracts 0 0
Net change in appreciation (depreciation)—other 5,257 (1,788)
Net realized and unrealized gain on investments and foreign currency transactions: 4,558,595 1,554,162
Net increase in net assets resulting from operations $ 5,204,643 $ 1,709,263

See accompanying notes to financial statements.