THE OAKMARK GLOBAL FUND Report from Clyde S. McGregor 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 (12/31/03) AS COMPARED TO THE MSCI WORLD INDEX18
	Annual Average Total Returns1
	(as of 12/31/03)
	Total Return Last 3 Months*	1-year	3-year	Since Inception (8/4/99)
Oakmark Global Fund	13.88%	48.98%	20.52%	17.34%3
MSCI World	14.26%	33.11%	-3.92%	-2.63%
Lipper Global Fund Index19	14.14%	31.96%	-3.30%	0.21%
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 gained 14% for the three-month period ending December 31, 2003, compared with the 14% increases for the MSCI World Index and the Lipper Global Fund Index.

For the twelve months calendar year 2003, The Oakmark Global Fund has returned 49%, compared to the smaller gains of 33% and 32% for the MSCI World Index and the Lipper Global Fund Index, respectively. Most importantly, since inception, the Fund has returned 17% annualized compared to a 3% decline in the MSCI World Index and 0% return in the Lipper Global Fund Index.

Change in Co-Portfolio Manager

On October 29, 2003 Clyde McGregor was named co-portfolio manager of The Oakmark Global Fund, replacing Greg Jackson. Greg left Harris Associates L.P., the Funds' adviser, primarily to move back to Utah to be closer to family. We wish to extend our heartfelt thanks to Greg for his tremendous contribution to the success of The Oakmark Global Fund. We will miss him as a colleague, and wish him and his family the best success in all future endeavors.

All of us here at Harris Associates are very excited to have Clyde aboard. Clyde has one of the longest tenures of any professional in the Firm, joining Harris Associates in 1981, and has built a tremendous investment record over the eight-year life of The Oakmark Equity and Income Fund. Clyde has a M.B.A. in Finance from the University of Wisconsin-Madison (1977) and a B.A. in Economics and Religion from Oberlin College (1974). He has over twenty-five years of investment experience and is a CFA charterholder.

Oakmark Global will continue to be managed using the same value approach employed since its inception. The Fund invests in companies around the world that are trading at a significant discount to estimated intrinsic value, that demonstrate the potential to grow per-share business value over time, and possess company management whose interests are aligned with shareholders.

A Few New Additions

We have added a few new names in the past quarter. Burlington Resources is the second largest independent energy producer in North America. 80% of Burlington's reserves are natural gas, the fuel of choice in the US. Over the last seven years Burlington has experienced favorable finding costs for its energy reserves, a critical variable in generating good returns and growing per-share value in this business. We calculate a current liquidation value for Burlington of $68/share, using conservative estimates of market prices for gas and oil in the future. In fact, there is significant upside potential in our medium term estimates of gas prices. Management seems to agree with our analysis as the company has been repurchasing stock at a meaningful rate.

Bank of Ireland is a leading financial institution in Ireland - the 2nd largest mortgage lender, one of the largest life insurance underwriters and one of the top retail lenders. Loans and book value per share have grown at a rate of 10% over the past 5+ years and returns have been excellent, greater than 20%, during that time. Despite these attractive qualities we are able to buy this business for 11x March 2005 earnings, by our calculations roughly 65% of fair value.

Despite the Fund's strong performance this year we remain excited about the values in the portfolio. We thank you for your support.

Clyde S. McGregor, CFA Portfolio Manager mcgregor@oakmark.com	Michael J. Welsh, CFA, CPA Portfolio Manager mwelsh@oakmark.com

Global Diversification—December 31, 2003 (Unaudited)

Schedule of Investments—December 31, 2003 (Unaudited)