THE OAKMARK GLOBAL FUND Report from Gregory L. Jackson and Michael J. Welsh, Portfolio Managers

THE VALUE OF A $10,000 INVESTMENT IN THE OAKMARK GLOBAL FUND FROM ITS INCEPTION (8/4/99) TO PRESENT (9/30/03) AS COMPARED TO THE MSCI WORLD INDEX18
	Annual Average Total Returns1
	(as of 9/30/03)
	Total Return Last 3 Months*	1-year	3-year	Since Inception (8/4/99)
Oakmark Global Fund	9.55%	50.27%	17.63%	14.83%3
MSCI World	4.84%	25.40%	-10.05%	-5.85%
Lipper Global Fund Index19	5.39%	22.61%	-9.18%	-2.91%
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 had a strong quarter, gaining 10% for the three-month period ending September 30, 2003. This quarter's results compare favorably with the 5% increase for the MSCI World Index and the 5% increase for the Lipper Global Fund Index.

For the first nine months of calendar year 2003, The Oakmark Global Fund has returned 31%, compared to the smaller gains of 16% for both MSCI World Index and the Lipper Global Fund Index. Most importantly, since inception the Fund has returned 15% annualized compared to declines in the above indices.

Happy 4^th Anniversary

On August 4^th, the Oakmark Global Fund had its 4-year anniversary. We are proud of the record we have achieved over these past four years, with performance that is in the top 2% out of 187 global funds over that period according to Lipper.²⁰ We feel this anniversary is a good opportunity to reiterate the philosophy of the Fund and revisit how we manage the portfolio.

Philosophy and Process

As with the other Oakmark Funds we believe superior long-term results are achieved by investing in quality companies purchased at significant discounts to the underlying business value. We base our investment decisions on our own intensive, independent, fundamental research, focusing on the long-term worth of a business. Equally important as the price we pay, we must have confidence that the priority of management is to make money for the owners, namely, us.

Inherent in our philosophy is the belief that, over time, a company's share price will reflect underlying business value. It may take time for this gap to close, perhaps, if the short-term uncertainty that created the opportunity persists. It is our job as analysts to determine whether the current share price is properly compensating us for this uncertainty.

Portfolio Construction

The Global Fund is built from the bottom-up on a stock-by-stock basis. We will never allocate money, as many global investors do, based solely on macroeconomic predictions of the various regions of the world. Too often this sort of top-down investing ignores valuation and, more important, the quality of the underlying companies in a particular economy. We certainly consider macroeconomic factors in our appraisals of companies, but never as a primary reason for making an investment.

We like to characterize the construction process as "ideas battling their way into the portfolio on a stock-by-stock basis". Each idea is judged strictly on its merits, not whether it is a large or small cap, or where the company's headquarters is located. Strict discipline is maintained by adhering to individual stock buy and sell targets.

Position sizes within the Fund are determined primarily by the size of the perceived gap between price and value. Concentration—bigger weightings in fewer companies—is another important component of portfolio construction.

This is important, as we want our best ideas to have significant impact on the Fund's net asset value.

Probably the most unique aspect of the Oakmark Global Fund is its flexibility—we are able to invest in companies of any size capitalization, in any industry, in any location. This flexibility allows us to go wherever value takes us.

Current Portfolio

Where value takes us today is primarily Europe, and in larger cap, blue-chip stocks. At today's prices, we continue to find better value outside of the United States. Looking at the composition of the Fund, the geographic breakdown is Europe & the United Kingdom 44%, United States 37%, Pacific Rim 14%, and Latin America 4%. Apart from the US the largest country weightings include the UK (11%), France (11%), Japan (8%), and Switzerland (8%). Among the largest industry concentrations include banking & financials, food & beverages, pharmaceuticals, information services and computer software.

We have very much enjoyed the past four years as managers of Oakmark Global. We appreciate your continued confidence and support.

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

Global Diversification—September 30, 2003

Schedule of Investments—September 30, 2003

See accompanying notes to financial statements.