The Oakmark Family of Funds

Statement of Assets and Liabilities—March 31, 1999

	The Oakmark Fund	The Oakmark Select Fund	The Oakmark Small Cap Fund
Assets
Investments, at value	$5,716,776,102	$1,629,721,402	$484,758,232
	(cost: 5,368,169,702)	(cost: 1,548,722,442)	(cost: 505,568,462)
Cash	659	651	105
Foreign currency, at value	0	0	0
Receivable for:
Forward foreign currency contracts	0	0	0
Securities sold	26,560,169	0	3,597,360
Fund shares sold	2,519,119	2,763,418	284,476
Dividends and interest	13,514,355	1,866,764	230,230
Expense reimbursement	0	0	0
Total receivables	42,593,643	4,630,182	4,112,066
Other assets	156,740	30,166	21,729
Total assets	$5,759,527,144	$1,634,382,401	$488,892,132
Liabilities and Net Assets
Payable for:
Securities purchased	0	14,109,761	2,405,950
Fund shares redeemed	16,564,437	2,110,873	0.00
Due to adviser	4,765,865	1,248,472	555,725
Forward foreign currency contracts	0	0	0
Other	1,680,937	456,304	273,483
Total liabilities	23,011,239	17,925,410	3,235,158
Net assets applicable to fund shares outstanding	$5,736,515,905	$1,616,456,991	$485,656,974
Fund shares outstanding	160,902,730	74,760,952	36,044,548
Price of Shares
Net asset value per share	$35.65	$21.62	$13.47
Analysis of Net Assets
Paid in capital	$4,580,091,836	$1,193,414,387	$504,505,329
Accumulated undistributed net realized gain (loss) on sale of investments, forward contracts and foreign currency exchange transactions	785,349,749	333,459,399	9,868,667
Net unrealized appreciation (depreciation) of investments	348,606,400	80,998,960	(20,810,230)
Net unrealized appreciation (depreciation) of foreign currency portfolio hedges	0	0	0
Net unrealized appreciation (depreciation)—other	0	0	0
Accumulated undistributed net investment income (loss)	22,467,920	8,584,245	(7,906,792)
Net assets applicable to Fund shares outstanding	$5,736,515,905	$1,616,456,991	$485,656,974

	The Oakmark Equity and Income Fund	The Oakmark International Fund	The Oakmark International Small Cap Fund
Assets
Investments, at value	$59,661,949	$699,201,074	$103,942,124
	(cost: 54,408,381)	(cost: 838,706,438)	(cost: 100,763,743)
Cash	57	219	82
Foreign currency, at value	0	3,152,865	3,368
Receivable for:
Forward foreign currency contracts	0	8,315,529	999,808
Securities sold	250,507	22,341,159	261,048
Fund shares sold	7,418	2,028,971	815,310
Dividends and interest	537,647	8,067,611	484,833
Expense reimbursement	0	0	0
Total receivables	795,572	40,753,270	2,560,999
Other assets	3,511	19,661	3,679
Total assets	$60,461,089	$743,127,089	$106,510,252
Liabilities and Net Assets
Payable for:
Securities purchased	132,800	7,157,165	4,570,943
Fund shares redeemed	19,896	3,828,193	472,676
Due to adviser	37,144	586,831	78,878
Forward foreign currency contracts	0	57,770	267
Other	59,031	1,497,861	108,826
Total liabilities	248,871	13,127,820	5,231,590
Net assets applicable to fund shares outstanding	$60,212,218	$729,999,269	$101,278,662
Fund shares outstanding	4,005,126	58,801,836	9,428,517
Price of Shares
Net asset value per share	$15.03	$12.41	$10.74
Analysis of Net Assets
Paid in capital	$50,758,005	$860,052,071	$100,484,054
Accumulated undistributed net realized gain (loss) on sale of investments, forward contracts and foreign currency exchange transactions	3,265,621	(28,016,663)	(3,840,371)
Net unrealized appreciation (depreciation) of investments	5,253,568	(139,488,976)	3,178,401
Net unrealized appreciation (depreciation) of foreign currency portfolio hedges	0	8,294,591	994,168
Net unrealized appreciation (depreciation)—other	0	(649,895)	81
Accumulated undistributed net investment income (loss)	935,024	29,808,141	462,329
Net assets applicable to Fund shares outstanding	$60,212,218	$729,999,269	$101,278,662

See accompanying notes to financial statements.

The Oakmark Family of Funds

Statement of Operations—March 31, 1999

	The Oakmark Fund	The Oakmark Select Fund	The Oakmark Small Cap Fund
Investment Income:
Dividends	$61,658,308	$14,689,387	$2,909,841
Interest Income	10,212,951	3,756,519	728,907
Securities lending income	0	75,764	33,811
Foreign taxes withheld	(126,816)	0	0
Total investment income	71,744,443	18,521,670	3,672,559
Expenses:
Investment advisory fee	32,785,403	6,838,371	4,070,715
Transfer and dividend disbursing agent fees	1,903,989	464,312	287,986
Other shareholder servicing fees	1,605,504	386,486	144,456
Reports to shareholders	957,714	228,052	122,962
Custody and accounting fees	375,316	94,186	58,323
Registration fees, net of reimbursements	7,228	12,479	(105,245)
Trustee fees	92,991	33,730	24,858
Legal fees	36,689	16,421	10,055
Audit fees	15,597	16,550	14,050
Other	325,041	59,108	34,666
Total expenses	38,105,472	8,149,695	4,662,826
Expense reinbursement
Expense offset arrangements	(1,795)	(2,303)	(3,976)
Net expenses	38,103,677	8,147,392	4,658,850
Net Investment Income (loss):	33,640,766	10,374,278	(986,291)
Net realized and unrealized gain (loss) on investments and foreign currency transactions:
Net realized gain (loss) on investments	734,073,485	316,560,438	8,177,983
Net realized gain (loss) on foreign currency transactions	0	0	0
Net change in unrealized appreciation (depreciation) of investments and foreign currencies	33,887,254	72,226,050	45,284,187
Net change in appreciation (depreciation) of forward currency exchange contracts	0	0	0
Net change in appreciation (depreciation)—other	0	0	0
Net realized and unrealized gain (loss) on investments and foreign currency transactions:	767,960,739	388,786,488	53,462,170
Net increase in net assets resulting from operations	$801,601,505	$399,160,766	$52,475,879

	The Oakmark Equity and Income Fund	The Oakmark International Fund	The Oakmark International Small Cap Fund
Investment Income:
Dividends	$532,325	$13,996,787	$996,019
Interest Income	600,769	563,929	91,675
Securities lending income	6,921	114,999	1,798
Foreign taxes withheld	(6,941)	(2,136,341)	(104,546)
Total investment income	1,133,074	12,539,374	984,946
Expenses:
Investment advisory fee	229,768	3,774,106	398,517
Transfer and dividend disbursing agent fees	32,856	326,251	30,623
Other shareholder servicing fees	8,008	138,512	13,016
Reports to shareholders	14,820	165,427	16,391
Custody and accounting fees	24,257	432,012	76,482
Registration fees, net of reimbursements	10,388	(44,514)	12,111
Trustee fees	18,586	26,294	18,724
Legal fees	7,898	10,629	7,943
Audit fees	13,550	16,644	15,597
Other	3,905	37,749	3,937
Total expenses	364,036	4,883,110	593,341
Expense reinbursement
Expense offset arrangements	(18)	(347)	(101)
Net expenses	364,018	4,882,763	593,240
Net Investment Income (loss):	769,056	7,656,611	391,706
Net realized and unrealized gain (loss) on investments and foreign currency transactions:
Net realized gain (loss) on investments	3,094,125	(31,108,797)	(2,097,425)
Net realized gain (loss) on foreign currency transactions	(1,160)	3,371,071	(108,363)
Net change in unrealized appreciation (depreciation) of investments and foreign currencies	2,121,224	209,375,178	32,074,881
Net change in appreciation (depreciation) of forward currency exchange contracts	0	9,810,143	1,173,225
Net change in appreciation (depreciation)—other	0	(848,679)	(5,802)
Net realized and unrealized gain (loss) on investments and foreign currency transactions:	5,214,189	190,598,916	31,036,516
Net increase in net assets resulting from operations	$5,983,245	$198,255,527	$31,428,222

See accompanying notes to financial statements.

The Oakmark Family of Funds

Statement of Changes in Net Assets—March 31, 1999

	The Oakmark Fund
	Six Months Ended March 31, 1999	Year Ended September 30, 1998
From Operations:
Net investment income	$33,640,766	$94,480,595
Net realized gain (loss) on sale of investments	734,073,485	1,258,937,339
Net realized gain (loss) on foreign currency transactions	—	(8,898)
Net change in unrealized appreciation (depreciation)	33,887,254	(1,704,966,868)
Net increase in net assets from operations	801,601,505	(351,557,832)
Distribution to shareholders from:*
Net investment income	(89,027,299)	(66,321,023)
Net realized short-term gain	(128,028,090)	(25,210,618)
Net realized long-term gain	(195,968,414)	(1,098,260,243)
Total distributions to shareholders	(413,023,803)	(1,189,791,884)
From Fund share transactions:
Proceeds from shares sold	525,301,024	2,836,315,983
Reinvestment of dividends and capital gain distributions	391,286,661	1,133,761,068
Payments for shares redeemed	(2,492,607,364)	(2,119,718,081)
Net increase in net assets from Fund share transactions	(1,576,019,679)	1,850,358,970
Total increase in net assets	(1,187,441,977)	309,009,254
Net assets:
Beginning of period	6,923,957,882	6,614,948,628
End of period	$5,736,515,905	$6,923,957,882
Undistributed net investment income	$22,467,920	$77,854,452
* Distributions per share:
Net investment income	0.4401	0.3996
Net realized short-term gain	0.6329	0.1519
Net realized long-term gain	0.9686	5.8556
Total distributions to shareholders	$2.0416	$6.4071

	The Oakmark Select Fund
	Six Months Ended March 31, 1999	Year Ended September 30, 1998
From Operations:
Net investment income	$10,374,278	$1,948,524
Net realized gain (loss) on sale of investments	316,560,438	69,415,172
Net realized gain (loss) on foreign currency transactions	—	—
Net change in unrealized appreciation (depreciation)	72,226,050	(78,902,257)
Net increase in net assets from operations	399,160,766	(7,538,561)
Distribution to shareholders from:*
Net investment income	(3,491,671)	—
Net realized short-term gain	(497,653)	(6,882,359)
Net realized long-term gain	(50,206,634)	—
Total distributions to shareholders	(54,195,958)	(6,882,359)
From Fund share transactions:
Proceeds from shares sold	348,812,227	1,440,695,723
Reinvestment of dividends and capital gain distributions	51,669,470	6,568,333
Payments for shares redeemed	(356,883,900)	(719,123,322)
Net increase in net assets from Fund share transactions	43,597,797	728,140,734
Total increase in net assets	388,562,605	713,719,814
Net assets:
Beginning of period	1,227,894,386	514,174,572
End of period	$1,616,456,991	$1,227,894,386
Undistributed net investment income	$8,584,245	$1,701,638
* Distributions per share:
Net investment income	0.0491	—
Net realized short-term gain	0.0070	0.1678
Net realized long-term gain	0.7058	—
Total distributions to shareholders	$0.7619	$0.1678

	The Oakmark Small Cap Fund
	Six Months Ended March 31, 1999	Year Ended September 30, 1998
From Operations:
Net investment income	$(986,291)	$(4,959,862)
Net realized gain (loss) on sale of investments	8,177,983	124,757,914
Net realized gain (loss) on foreign currency transactions	—	—
Net change in unrealized appreciation (depreciation)	45,284,187	(374,056,372)
Net increase in net assets from operations	52,475,879	(254,258,320)
Distribution to shareholders from:*
Net investment income	—	—
Net realized short-term gain	—	(35,041,133)
Net realized long-term gain	(4,511,716)	(129,772,888)
Total distributions to shareholders	(4,511,716)	(164,814,021)
From Fund share transactions:
Proceeds from shares sold	173,080,077	416,817,749
Reinvestment of dividends and capital gain distributions	4,282,238	156,645,973
Payments for shares redeemed	(357,664,266)	(1,049,792,259)
Net increase in net assets from Fund share transactions	(180,301,951)	(476,328,537)
Total increase in net assets	(132,337,788)	(895,400,878)
Net assets:
Beginning of period	617,994,762	1,513,395,640
End of period	$485,656,974	$617,994,762
Undistributed net investment income	$(7,906,792)	$(6,920,502)
* Distributions per share:
Net investment income	—	—
Net realized short-term gain	—	0.4738
Net realized long-term gain	0.0874	2.3874
Total distributions to shareholders	$0.0874	$2.8612

	The Oakmark Equity and Income Fund
	Six Months Ended March 31, 1999	Year Ended September 30, 1998
From Operations:
Net investment income	$769,056	$1,166,564
Net realized gain (loss) on sale of investments	3,094,125	1,578,730
Net realized gain (loss) on foreign currency transactions	(1,160)	—
Net change in unrealized appreciation (depreciation)	2,121,224	(2,325,892)
Net increase in net assets from operations	5,983,245	419,402
Distribution to shareholders from:*
Net investment income	(855,395)	(594,007)
Net realized short-term gain	—	(882,071)
Net realized long-term gain	(829,557)	(599,021)
Total distributions to shareholders	(1,684,952)	(2,075,099)
From Fund share transactions:
Proceeds from shares sold	13,810,491	43,125,943
Reinvestment of dividends and capital gain distributions	1,610,146	1,964,129
Payments for shares redeemed	(17,252,567)	(19,151,033)
Net increase in net assets from Fund share transactions	(1,831,930)	25,939,039
Total increase in net assets	2,466,363	24,283,342
Net assets:
Beginning of period	57,745,855	33,462,513
End of period	$60,212,218	$57,745,855
Undistributed net investment income	$935,024	$1,021,363
* Distributions per share:
Net investment income	0.2118	0.2359
Net realized short-term gain	—	0.3503
Net realized long-term gain	0.2379	0.2053
Total distributions to shareholders	$0.4171	$0.8241

	The Oakmark International Fund
	Six Months Ended March 31, 1999	Year Ended September 30, 1998
From Operations:
Net investment income	$7,656,611	$23,809,423
Net realized gain (loss) on sale of investments	(31,108,797)	86,532,713
Net realized gain (loss) on foreign currency transactions	(3,890,444)	(108,363)
Net change in unrealized appreciation (depreciation)	209,375,178	(502,914,491)
Net change in unrealized appreciation (depreciation) of forward currency exchange contracts	9,773,311	(2,045,738)
Net change in unrealized appreciation (depreciation)—other	(811,847)	195,384
Net increase in net assets from operations	198,255,527	(398,313,153)
Distribution to shareholders from (1):
Net investment income	(16,587,329)	(46,460,573)
Net realized short-term gain	(32,678,201)	(57,985,224)
Net realized long-term gain	(20,071,535)	(173,099,244)
Total distributions to shareholders	(69,337,065)	(277,545,041)
From Fund share transactions:
Proceeds from shares sold	103,602,841	482,976,228
Reinvestment of dividends and capital gain distributions	65,429,007	263,415,429
Payments for shares redeemed	(324,055,349)	(961,776,686)
Net increase in net assets from Fund share transactions	(155,023,501)	(215,385,029)
Total increase in net assets	(26,105,039)	(891,243,223)
Net assets:
Beginning of period	756,104,308	1,647,347,531
End of period	$729,999,269	$756,104,308
Undistributed net investment income	$29,808,142	$38,738,859
(1): Distributions per share:
Net investment income	0.2440	0.5758
Net realized short-term gain	0.4807	0.7186
Net realized long-term gain	0.2953	2.1453
Total distributions to shareholders	$1.0200	$3.4397

	The Oakmark International Small Cap Fund
	Six Months Ended March 31, 1999	Year Ended September 30, 1998
From Operations:
Net investment income	$391,706	$1,415,157
Net realized gain (loss) on sale of investments	(2,097,425)	(96,290)
Net realized gain (loss) on foreign currency transactions	(108,363)	(162,499)
Net change in unrealized appreciation (depreciation)	32,074,882	(27,728,327)
Net change in unrealized appreciation (depreciation) of forward currency exchange contracts	1,178,598	(179,057)
Net change in unrealized appreciation (depreciation)—other	(11,175)	2,414
Net increase in net assets from operations	31,428,222	(26,748,602)
Distribution to shareholders from (1):
Net investment income	(1,558,452)	(308,015)
Net realized short-term gain	—	(3,477,982)
Net realized long-term gain	—	(3,890,139)
Total distributions to shareholders	(1,558,452)	(7,676,136)
From Fund share transactions:
Proceeds from shares sold	50,793,315	77,339,314
Reinvestment of dividends and capital gain distributions	1,468,342	7,427,846
Payments for shares redeemed	(32,623,340)	(64,544,647)
Net increase in net assets from Fund share transactions	19,638,317	20,222,513
Total increase in net assets	49,508,087	(14,202,225)
Net assets:
Beginning of period	51,770,575	65,972,800
End of period	$101,278,662	$51,770,575
Undistributed net investment income	$462,329	$1,629,074
(1): Distributions per share:
Net investment income	0.2049	0.0559
Net realized short-term gain	—	0.6312
Net realized long-term gain	—	0.7060
Total distributions to shareholders	$0.2049	$1.3931

See accompanying notes to financial statements.