Letter from the Chairman and President

Dear Fellow Shareholders,

We are pleased to present the Third-Quarter Report for The Oakmark Family of Funds. Value investors received an increasing amount of attention in the past quarter. There was a significant correction in the market, especially in the NASDAQ, as investors became disenchanted with the technology sector. From its peak on March 10 through June 30 the NASDAQ lost 21.4%, while we saw positive advances in all of our funds during this same period. We are encouraged by the fact that investors have begun to reconsider so-called "old economy" stocks—an indication that our long-term value style will be rewarded.

During the quarter, some of our stocks experienced takeovers at considerable premiums, and the comparative valuations of many of the other stocks on our buy list remain very attractive. This strengthens our conviction that we have seen a turn in value. We are pleased with the relative performance of each of the Funds in our family. Our international funds had an especially solid quarter, as our managers used global volatility as an opportunity to pick up great companies at attractive prices. Please see details from the portfolio managers in the letters that follow.

As you may know, we have added Clyde McGregor as portfolio manager to The Oakmark Small Cap Fund. Clyde has been with Harris Associates for close to 20 years, and has expertly guided The Oakmark Equity and Income Fund since its inception in November 1995. We're pleased he can extend his stock-picking expertise to the Small Cap Fund. Steve Reid, who managed the Fund since its inception, has been on an extended leave of absence and has stepped down from management of the Fund.

In mid-June, our parent company, Nvest L. P., entered into an agreement to be acquired by CDC Asset Management, the investment management arm of France's Caisse des Depots Group, a major diversified financial institution. We expect to retain our investment independence and operating autonomy. Thus, this will not affect our investment management activities or the daily operations of the Funds. We believe this new relationship is a very positive development for our parent company and may provide us with additional resources for the distribution of our investment products.

When visiting our web site at www.oakmark.com, you'll notice important changes to content and navigation. Investors can look up account balances and transactions in a secure environment, read portfolio manager commentary and fund updates, and view timely news information and market analysis. In the very near future, sometime in August, you will be able to purchase shares, order duplicate statements and change your address on-line. Going forward, we will continue to take steps toward providing important and timely information through our web site.

We appreciate your continued investment in The Oakmark Family of Funds.

Victor Morgenstern
Chairman

Robert M. Levy
President

July 5, 2000

THE OAKMARK FAMILY OF FUNDS

Summary Information

Performance for Period Ended June 30, 2000	The Oakmark Fund		The Oakmark Select Fund		The Oakmark Small Cap Fund
3 Months	2.6%		(5.2%)		(0.3%)
6 Months	(6.6%)		3.3%		(1.8%)
1 Year	(24.7%)		(0.6%)		(12.5%)
Average Annual Total Return for: 3 Year	(1.4%)		19.7%		(3.4%)
5 Year	9.1%		N/A		N/A
Since inception	19.0%		27.4%		10.5%
Value of $10,000 from inception date	$46,950 (8/5/91)		$24,324 (11/1/96)		$15,926 (11/1/95)
Top Five Holdings as of June 30, 2000 Company and % of Total Net Assets	Fortune Brands, Inc.	3.9%	Washington Mutual, Inc.	14.3%	Catellus Development Corporation	6.2%
	Nabisco Holdings Corporation	3.8%	Toys 'R' Us, Inc.	8.6%	ITT Educational Services, Inc.	6.0%
	Washington Mutual, Inc.	3.7%	The Reynolds & Reynolds Company	7.5%	Ugly Duckling Corporation	5.6%
	Brunswick Corporation	3.3%	USG Corporation	7.2%	Micron Electronics, Inc.	4.7%
	ACNielsen Corporation	3.2%	The Dun & Bradstreet Corporation	5.9%	National Data Corporation	4.6%
Top Five Industries as of June 30, 2000 Industries and % of Total Net Assets	Other Consumer Goods & Services	17.4%	Banks & Thrifts	14.6%	Real Estate	11.7%
	Food & Beverage	7.7%	Retail	13.4%	Banks & Thrifts	8.6%
	Information Services	7.6%	Information Services	11.0%	Insurance	7.8%
	Retail	6.2%	Computer Services	8.9%	Food & Beverage	7.0%
	Household Products	6.0%	Computer Software	7.5%	Educational Services	6.0%

Performance for Period Ended June 30, 2000	The Oakmark Equity and Income Fund		The Oakmark Global Fund		The Oakmark International Fund		The Oakmark International Small Cap Fund
3 Months	(0.2%)		3.2%		7.1%		0.9%
6 Months	4.2%		4.0%		6.9%		(4.1%)
1 Year	2.3%		N/A		8.3%		1.4%
Average Annual Total Return for: 3 Year	12.0%		N/A		7.1%		5.6%
5 Year	N/A		N/A		13.5%		N/A
Since inception	14.6%		N/A		14.1%		9.9%
Value of $10,000 from inception date	$18,886 (11/1/95)		$10,381 (8/4/99)		$27,856 (9/30/92)		$15,529 (11/1/95)
Top Five Holdings as of June 30, 2000 Company and % of Total Net Assets	Alamo Group Inc.	4.8%	Ceridian Corporation	5.4%	Diageo plc	4.9%	Fletcher Challenge Building	4.8%
	Citizens Communications Company	4.3%	ITT Educational Services, Inc.	5.2%	Somerfield plc	4.6%	GFI Industries SA	4.8%
	The Reynolds & Reynolds Company	4.3%	Somerfield plc	5.0%	Tomkins plc	4.1%	Hite Brewery	4.7%
	Catellus Development Corporation	4.1%	The Reynolds & Reynolds Company	4.9%	Hunter Douglas N.V.	4.1%	JCG Holdings Ltd.	4.7%
	Ceridian Corporation	3.8%	House of Fraser Plc	4.5%	Banco Latinoamericano de Exportaciones, S.A.	3.9%	Krones AG	4.7%
Top Five Industries as of June 30, 2000 Industries and % of Total Net Assets	U.S. Government Notes	25.7%	Retail	15.9%	Banks & Thrifts	19.2%	Production Equipment	10.9%
	Real Estate	13.8%	Information Services	13.1%	Other Industrial Goods & Services	10.0%	Retail	10.5%
	Banks& Thrifts	7.8%	Food & Beverage	8.7%	Food & Beverage	9.0%	Food & Beverage	8.2%
	Telecommunications	7.2%	Other Consumer Goods & Services	7.8%	Household Products	7.3%	Other Consumer Goods & Services	7.7%
	Medical Products	5.7%	Banks & Thrifts	7.5%	Retail	5.8%	Other Financial	7.2%