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 (3/31/05) AS COMPARED TO THE MSCI WORLD INDEX13
	Average Annual Total Returns (as of 3/31/05)
	Total Return Last 3 Months*	1-year	5-year	Since Inception (8/4/99)
Oakmark Global Fund (Class I)	0.60%	11.97%	18.53%	16.33%
MSCI World	-1.10%	10.56%	-2.86%	0.15%
Lipper Global Fund Index14	-0.88%	9.19%	-2.15%	2.40%
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.
The performance data quoted represents past performance. The above performance information for the Fund does not reflect the imposition of a 2% redemption fee on shares held for 90 days or less to deter market timers. If reflected, the fee would reduce the performance quoted. Past performance does not guarantee future results. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Average annual total return measures annualized change, while total return measures aggregate change. To obtain current month end performance data, call 1-800-OAKMARK or visit www.oakmark.com.
* Not annualized

Fellow Shareholders,

The Oakmark Global Fund gained 1% for the three-month period ending March 31, 2005, compared with the 1% declines for the MSCI World Index and the Lipper Global Fund Index.

Over the past five years, The Oakmark Global Fund has returned 19% annualized, compared to a 3% loss for the MSCI World Index and a 2% decline for the Lipper Global Fund Index.

Portfolio Changes

The only significant new investment for the Fund during the quarter was Viacom, the U.S. media content giant with leading assets in each of its sectors. Viacom has seen its stock price erode over the past few years despite the company's strong cash flow and improving capital allocation. We believe cable networks (MTV, Nickelodeon, etc.) are the company's most valuable asset, while television (CBS, UPN) and entertainment (Paramount) appear to be on an upswing. It is the difficult operating conditions in the Infinity radio unit that has most concerned the market. While it may be generating the majority of the negative headlines and contributing to the share price decline it's important to note that we think Infinity accounts for less than 20% of Viacom's overall enterprise value. Given the overall quality of Viacom's assets combined with a management team—and ownership base—that is actively trying to boost the share price, we believe that Viacom's long-term investors will be rewarded.

The market's general pessimism toward media stocks has given us the opportunity over the past few quarters to continue to add to existing positions at attractive prices. Media companies now comprise roughly 12% of our portfolio. Along with Viacom, the Fund also owns stakes in Grupo Televisa (dominates Mexican media and Spanish-language programming), Vivendi Universal (ownership in NBC-Universal; Universal Music is #1 worldwide), Liberty Media (Discovery Channel, QVC, and Starz cable networks), Time Warner (HBO, Time, CNN, Turner Broadcasting), and Tribune Corp (Chicago Tribune and LA Times newspapers, WGN Television and the Chicago Cubs—oops, never mind the last one!).

Clearly, we believe that at current share prices media is one sector where we can find great value opportunities worldwide.

Bottom-Up Investing

We often say The Oakmark Global Fund is built stock-by-stock from the bottom-up. What does this mean? It means we focus on individual investment opportunities and don't make top-down, macroeconomic decisions in investing your money. We don't make "calls" on markets—for example, bearish on Japan and bullish on the U.S. or bearish on technology and bullish on steel. We make investment decisions based on the merits of individual businesses and do so only after thorough, independent due diligence. We want to remain agnostic regarding the size or location of a company and focus solely on constructing a portfolio of the most attractive risk-return opportunities. Geographic or industry weightings in the Fund are strictly a fall-out of stock selection.

When it comes to broad macroeconomic issues, we've often found that consensus views on particular countries or industries—bullish or bearish—lead to share price imperfections. For example, if everybody loves China, one may do well to tread with extra care: what is one actually buying, and at what price? Similarly, if everybody is bearish on European economies, as they are today, then investors may be ignoring some interesting opportunities.

We certainly believe that last statement to be true. Companies like Nestle and Diageo—both big positions in the Fund—are trading at significant discounts to similar companies elsewhere. This is due in part to investors' pessimism about the economic outlook for their home markets, discounting the fact that these are global businesses with profit centers all over the world. In addition the strong Euro and British Pound are also masking the true earnings power of these companies.

We understand that Europe still has some problems; high unemployment, barriers to business efficiency, and aging population are all matters of concern. We see some positive signs of reform, such as recent labor concessions in France and Germany, as well as talk of corporate tax cuts. But most importantly one factor that is often lost in all this bearishness is price. In the cases of Nestle and Diageo, we think these negatives are more than fully reflected in their current share prices.

In constructing The Oakmark Global Fund we search for companies that are priced at a substantial discount to their true business value and are run by managers who think and act like owners. As long as we remain focused on the long-term worth of a business—and maintain a disciplined approach to the price we are willing to pay—we believe we can find attractive opportunities despite a negative operating environment.

Looking Forward

We will continue to manage the portfolio using the same value discipline described above. We remain excited about the value and quality of the names in the Fund. Thank you for your continued confidence and support.

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

Global Diversification—March 31, 2005 (Unaudited)

Schedule of Investments—March 31, 2005 (Unaudited)