THE OAKMARK SELECT FUND Report from Bill Nygren and Henry Berghoef, Portfolio Managers

THE VALUE OF A $10,000 INVESTMENT IN THE OAKMARK SELECT FUND FROM ITS INCEPTION (11/1/96) TO PRESENT (6/30/05) AS COMPARED TO THE STANDARD & POOR'S 500 INDEX5

	Average Annual Total Returns
	(as of 6/30/05)
	Total Return Last 3 Months*	1-year	5-year	Since Inception (11/1/96)
Oakmark Select Fund (Class I)	-0.27%	8.61%	13.69%	19.31%
S&P 500	1.37%	6.32%	-2.37%	7.90%
S&P MidCap 4008	4.26%	14.03%	8.49%	14.07%
Lipper Mid Cap Value Index9	2.58%	13.37%	10.95%	10.90%

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

The Oakmark Select Fund had another flat quarter. The prior quarter was the first time since the Fund's inception in 1996 that we had a 0% quarter. We hope that streak ends at two!

Limited Brands and Mattel were our biggest losers. Limited Brands continued to report disappointing progress on its attempt to turnaround its Express chain. We believe that the value of Limited's Victoria's Secret and Bath & Body Works chains exceeds the price of Limited stock. Though Express has been disappointing, we believe it is worth more than zero. Mattel also reported disappointing results for their Barbie division. After a very strong Christmas, Barbie sales again declined, increasing the skepticism about long-term growth prospects. On lowered earnings estimates, Mattel sells below fifteen times expected 2005 earnings, a price we believe makes the stock attractive, and also makes it an attractive acquisition candidate.

Offsetting those disappointments was the 16% gain in our second largest holding, H& R Block (HRB). HRB was added to Oakmark Select in 2000 after the stock collapsed when it acquired the brokerage firm Olde Securities. Though the market was correct to penalize HRB for that value-destroying acquisition (which was executed by a former CEO), the stock fell by more than 100% of Olde's cost, which we judged a severe over-reaction. During the time we've owned HRB, it has had extreme reactions to news items—flat tax rumors, increased tax preparer competition, changing mortgage spreads, and so on. A five-year look back helps bring the focus back to business value. Since 2000, both its tax preparation business and its sub prime mortgage business have grown substantially more than we or others anticipated. In fact, HRB operating income has approximately doubled in five years. And importantly, there haven't been any more ill-fated acquisitions. Instead, excess cash has been used primarily to reduce shares outstanding by 20%. Although the stock has more than quadrupled in just over five years, we still find it attractive. HRB is still the dominant market share leader in tax preparation, and the cost structure at its Option One sub prime mortgage business should make it well positioned for further market share gains. Despite our belief that HRB is a superior company, it sells at only fourteen times expected year ahead earnings, about a 10% discount to the average stock.

Best wishes,

William C. Nygren, CFA Portfolio Manager bnygren@oakmark.com	Henry R. Berghoef, CFA Portfolio Manager berghoef@oakmark.com

Schedule of Investments—June 30, 2005 (Unaudited)