THE OAKMARK GLOBAL FUND Report from Clyde S. McGregor and Robert A. Taylor, Portfolio Managers

THE VALUE OF A $10,000 INVESTMENT IN THE OAKMARK GLOBAL FUND FROM ITS INCEPTION (8/4/99) TO PRESENT (12/31/05) AS COMPARED TO THE MSCI WORLD INDEX13
	Average Annual Total Returns (as of12/31/05)
	Total Return Last 3 Months*	1-year	5-year	Since Inception (8/4/99)
Oakmark Global Fund (Class I)	3.29%	13.23%	18.05%	16.43%
MSCI World	3.06%	9.48%	2.18%	1.91%
Lipper Global Fund Index14	3.97%	11.89%	2.97%	4.22%
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, visit www.oakmark.com.
* Not annualized

The Oakmark Global Fund appreciated 3% for the quarter, which was consistent with the MSCI World Index. More importantly, over the past five years, The Oakmark Global Fund has returned 18% annualized, compared to annualized results of 2% for the MSCI World Index and of 3% for the Lipper Global Fund Index.

International markets led the way for 2005 with most major markets up double digits for the year. The holdings in the Fund were no exception. Euronext was the top non-U.S. contributor due to the potential for consolidation among European exchange operators. Julius Baer had a good year after its various share classes were consolidated and after the company announced the merger with UBS's smaller private banks and Global Asset Management. Neopost continued to be a solid contributor due to increasing operating results.

Both 2005 and the calendar fourth quarter were kind to the domestic holdings in the Fund. We are pleased that in a year when most indices of U.S. stocks produced minimal returns, the holdings in the Global Fund carried their weight in the portfolio and returned about 11%. Burlington Resources, the Fund's largest holding, led the way for the year with a 99% return. In December, after what had already been a strong year for the company's stock, Burlington Resources announced that it would be acquired by ConocoPhillips for cash and stock initially valued at approximately $92/share. While we are somewhat sad to say goodbye to a management team that has done such a good job in growing per share value, the acquisition price reflects a fair value for the business. Thanks to Bobby Shackouls, Steve Shapiro and Randy Limbacher of Burlington Resources for their excellent stewardship of the company over the past few years.

Media names continued to struggle in 2005. Tribune, Liberty Media, Viacom, and Time Warner were some of the biggest detractors for the year. Despite this under performance, recent private market transactions seem to confirm our estimates of business value. Viacom will begin trading as two separate companies in order to highlight the value of the CBS network, billboards, and radio businesses versus the cable networks. Shareholder activism at Knight Ridder and Time Warner should also be positives. Finally, after two years of weak share performance but decent underlying results and strong free cash flow generation, we believe that it is likely that the market will soon begin to recognize the value of our media names.

Portfolio Composition

We initiated several new holdings in the quarter. While Discovery Holdings is technically not a new position, having been spun out of our holding in Liberty Media, we chose to increase the commitment in the stock to a meaningful size after we observed significant insider purchases of the stock. We also purchased shares of Brunswick, Dell, Washington Post, and Trinity Mirror after their stocks sank following earnings disappointments. In each instance we evaluated that the earnings reports were irrelevant to the companies' long-term business values. Brunswick, a mid-cap Chicago-area manufacturer, is a fairly typical name for our portfolios. Dell, however, is something entirely different. We believe that investors generally miscast Dell as a technology company, but we view the company as a logistics business that assembles products. Dell's financial characteristics are virtually unparalleled because the company receives payment from its customers well before it must pay its vendors. We are pleased that the market has offered us this opportunity to purchase a superb business at a good price. Trinity Mirror is a leading newspaper franchise in the UK. A relatively new management team is restructuring the business, implementing a performance driven culture, improving the editorial staff, and upgrading the capacity to color. These actions should help offset the temporarily weak advertising market.

One might ask why we would initiate a position in the Washington Post after media stocks have languished in the market (and in our portfolio). The answer is that we see the market's aversion to media companies as our opportunity to gain entry into the rapidly growing education market at a fine price. Washington Post is best known for its namesake newspaper, but it also owns Newsweek, various cable TV and television properties, and Kaplan Education. The unique characteristics of the Washington D.C. market mitigate some of the problems that currently plague other big city newspapers. We assume only modest growth in business value from the remaining media properties. The company's Kaplan unit, however, strikes us as a business ideally positioned to benefit from trends in career education and college preparation. We see the Post as a company with several crown jewels, but it is Kaplan that currently shines brightest.

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	Robert A. Taylor, CFA Portfolio Manager rtaylor@oakmark.com

Global Diversification—December 31, 2005 (Unaudited)

Schedule of Investments—December 31, 2005 (Unaudited)