THE VALUE OF A $10,000 INVESTMENT IN THE OAKMARK GLOBAL FUND FROM ITS INCEPTION (8/4/99) TO PRESENT (9/30/02) AS COMPARED TO THE MSCI WORLD INDEX19
	Average Annual Total Returns4
	(as of 9/30/02)
	Total Return Last 3 Months*	1-year	Since Inception (8/4/99)
Oakmark Global Fund	-17.70%	6.84%	5.46%6
MSCI World	-18.38%	-19.18%	-13.98%
Lipper Global Fund Index20	-17.53%	-15.89%	-9.80%
The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Past performance is no guarantee of future results. Investment return and principal value vary, and you may have a gain or loss when you sell shares. Average annual total return measures annualized change, while total return measures aggregate change.
* Not annualized

Fellow Shareholders,

The Oakmark Global Fund declined 18% for the three-month period ending September 30, 2002. This quarter's results are in-line with the 18% decline for the MSCI World Index and the 18% decline for the Lipper Global Fund Index. For the twelve-month period ending September 30, 2002, The Oakmark Global Fund increased 7%, which compares favorably versus the declines of 19% and 16% for the MSCI World Index and the Lipper Global Fund Index respectively. Our number one goal is to generate positive absolute returns, while hopefully outperforming the relative benchmarks in the process. We are happy to report that for the fiscal year ending September 30, 2002, The Oakmark Global Fund succeeded in achieving both objectives.

Value Philosophy Remains Unchanged

While investor sentiment continually shifts from optimism to pessimism or from a growth orientation to a value bent, our investing philosophy remains unchanged. Our value philosophy remains paramount to our past and future investment success. As a refresher, the three primary tenets of our value investment philosophy are: 1) To buy businesses that are trading for no more than 70% of our appraised value—offering a margin of safety between what we pay and what we calculate to be the company's underlying intrinsic value. 2) To buy companies that are growing per share value—buying statistically cheap businesses that don't grow has been a deathtrap for many value investors. 3) To invest with management teams that think and act like shareowners—when management's incentives are directly linked to increasing shareholder returns, both parties benefit. It makes no difference to us whether a company is categorized as being a "growth" or "value" business—we are agnostic when it comes to the types of businesses we own. What is important to us is that each company we buy adheres to our three primary investment tenets (our philosophy).

The Oakmark Global Fund has two distinguishing characteristics that differentiate it from other funds of The Oakmark Family: 1) The Global Fund is not limited to investing in any one country or geographic region, but rather we are able to invest anywhere in the world that we find attractive ideas, and 2) we can invest in companies of all sizes—small, mid, or large capitalization companies. In prior reports we have highlighted the benefits of being able to invest globally (point #1) and would now like to discuss the benefits of investing in companies of all sizes (point #2).

While we never target a specific "size" company, our research process often times leads us to companies or industries that are out of favor or which have declined significantly in price. It is important to note that the companies in our portfolio are selected individually on a company by company basis. In other words, we employ a bottom-up investment approach. Often times we find that companies in the same industry or market capitalization range become attractive at similar time intervals. Therefore, our portfolio may at times appear to be weighted towards a particular size company or a particular industry. For example, in late 1999 and early 2000 Morningstar positioned The Oakmark Global Fund in the small-cap value category based upon their proprietary style boxes. During late 1999 and early 2000, we found that most investors focused on large-cap growth companies and seemed to ignore many of the small to mid-size companies such as ITT Educational Services, Nova Corporation, Sterling Commerce, Hite Brewery, Telemig Celular and Denny's Japan. It just so happens that the Russell 2000 Value Index (a small cap value index) was the number one performing Russell category, returning an aggregate 55.8%, from October 1, 1999 through March 31, 2002. Therefore, targeting the out of favor small and midsize capitalization companies during late 1999 and early 2000 positioned the Fund towards the number one performing category over that two and one-half year time frame.

Today, Morningstar positions The Oakmark Global Fund in the large-cap growth category based upon their proprietary style boxes. Has our investment approach changed? Definitely not! Rather, the once high-flying large capitalization growth companies of 1999 and early 2000 have seen severe share price declines, which now make them attractive investments based upon our three primary investment tenets. Our holdings today include Vivendi Universal, LM Ericsson, Grupo Televisa, GlaxoSmithKline, Liberty Media, Abbott Labs, First Data Corporation and Interpublic Group. Generally speaking, value investors are usually not given the opportunity to own such high quality, fast-growing businesses as those listed above because of the higher valuation levels typically afforded these companies. However, the recent worldwide stock market decline has given us a chance to own what historically have been labeled "growth" businesses at very attractive prices. Given the valuation levels of the large capitalization companies currently held in the portfolio, we believe the Fund is well-positioned as the economy and stock markets recover in the future.

Our investment philosophy, based upon our three primary tenets, will always be the driving force behind all our investment decisions. As you can see by the examples above, having the ability to own companies of any size and in any geography allows The Oakmark Global Fund the flexibility to move wherever the best ideas are found—we go wherever value leads us. Given the attractive prices and the quality level of the businesses currently held in the portfolio, we remain quite excited about the future prospects for The Oakmark Global Fund.

Thank you for your continued confidence and support.

Gregory L. Jackson Portfolio Manager gjackson@oakmark.com	Michael J. Welsh, CFA, CPA Portfolio Manager 102521.2142@compuserve.com

Global Diversification—September 30, 2002

Schedule of Investments—September 30, 2002

See accompanying notes to financial statements.