THE OAKMARK INTERNATIONAL FUND Report from David G. Herro and Michael J. Welsh, Portfolio Managers

THE VALUE OF A $10,000 INVESTMENT IN THE OAKMARK INTERNATIONAL FUND FROM ITS INCEPTION (9/30/92) TO PRESENT (3/31/03) COMPARED TO THE MSCI WORLD EX U.S. INDEX31
	Average Annual Total Returns1
	(as of 3/31/03)
	Total Return Last 3 Months*	1-year	5-year	10-year	Since Inception (9/30/92)
Oakmark International Fund	-11.72%	-27.50%	-0.45%	6.57%	8.02%
MSCI World ex. U.S.	-7.52%	-22.57%	-6.82%	2.21%	2.83%
MSCI EAFE32	-8.21%	-23.23%	-7.12%	1.95%	2.58%
Lipper International Fund Index33	-8.80%	-23.30%	-6.07%	3.73%	4.24%
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

The Oakmark International Fund declined 12% for the quarter, compared to the MSCI World ex-US Index which fell 8%. Since the onset of the bear market three years ago the Fund has held up exceptionally well relative to the overseas equity markets. The Oakmark International Fund declined 14% over the last three years, compared to the 47% drop in MSCI World ex-US Index.

Market jitters have resulted in significant price declines in some of our holdings for what we feel are short-term or (in some cases) illusory concerns. For The Oakmark International Fund, the individual securities which detracted significantly from this quarter's performance included Akzo Nobel, Aegis Group, and SK Telecom. Shares of Akzo Nobel N.V., a Dutch pharmaceutical and chemical manufacturer, were negatively impacted by market worries about the grim short-term outlook for their products as well as its exposure to the currently weak US dollar. We have continued to add to the position as the price has declined.

Alongside a weak advertising market, Aegis' stock price was hit this quarter, reflecting the market's concern that it may overpay for some of the market research assets of Interpublic Group. Based on our recent discussions with management we feel that if a deal is done, it will come at a price that will enhance value per share.

SK Telecom's stock price was hurt by accounting scandals at associated member, SK Global. Though part of the same chaebol group, these entities are separately managed and unrelated in any other significant manner. The stock price reaction had little to do with underlying fundamentals. In fact, we feel that these events may be positive, as it will force SK Global to divest their shares in SK Tele-com. We believe a further long-term positive is that it will likely strengthen the shareholder movement for stronger corporate governance in Korea. SK Telecom remains the cheapest telecom company in our investment universe, trading at six times this year's operating profit and less than ten times earnings.

Looking Forward

Given the quality of the holdings and the attractive valuation of the portfolio, we remain optimistic about potential price appreciation. Thank you for your continued confidence.

David G. Herro, CFA Portfolio Manager dherro@oakmark.com	Michael J. Welsh, CFA, CPA Portfolio Manager mwelsh@oakmark.com

International Diversification—March 31, 2003 (Unaudited)

Schedule of Investments—March 31, 2003 (Unaudited)

See accompanying notes to financial statements.