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 (6/30/06) AS COMPARED TO THE STANDARD & POOR'S 500 INDEX4

	Average Annual Total Returns
	(as of 6/30/06)
	Total Return Last 3 Months*	1-year	5-year	Since Inception (11/1/96)
Oakmark Select Fund (Class I)	-0.77%	6.82%	6.60%	17.97%
S&P 500	-1.44%	8.63%	2.49%	8.00%
S&P MidCap 40010	-3.15%	12.98%	9.30%	13.96%
Lipper Mid Cap Value Index11	-2.21%	10.94%	10.13%	10.91%

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.

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 most recent month-end performance data, visit oakmark.com.

* Not annualized

The Oakmark Select Fund lost a little less than 1% last quarter, compared to the S&P 500, which lost a little more than 1%. For the calendar year-to-date, Select's 2% gain slightly trails the S&P's 3% gain. Our most positive performers were two of our largest holdings, Washington Mutual and H&R Block. Washington Mutual benefited from a strong financial sector performance, perhaps because investors now anticipate an end to rising short-term interest rates. H&R Block responded well to a strong second half of their tax preparation year. We are pleased with Block's progress and anticipate a strong 2007 tax season—one that is not burdened by computer problems or new lending products from their competition. On the downside, recent purchases Dell and Pulte continued to decline—in our opinion, excessively—so both positions were significantly increased. Unfortunately, the magnitude of their declines was greater than the magnitude of our winners, leading to the slight decline in the portfolio for the quarter.

Two of our holdings, Viacom International and Liberty Media, split into two pieces this year. Viacom spun off their interest in CBS last quarter, and Liberty spun off their ownership of QVC as Liberty Interactive. We viewed both companies as attractive prior to their spin-offs, and after the spin-offs, we thought all four were attractive. Because of Select's concentrated mandate, however, we sought to focus our investment in the most attractive opportunities. So during the quarter, we sold CBS and Liberty Capital, and we increased our positions in "new" Viacom and Liberty Interactive. The sales were achieved with minimal tax consequences because we had not incurred a meaningful gain or loss on either position.

With Nickelodeon and MTV as its major assets, the "new" Viacom is nearly a pure play in cable TV programming. Liberty Interactive is the leader in shop-at-home programming due to its primary asset, the QVC channel. QVC has shown amazing growth and viewer loyalty as it continues to deliver that perfect combination of entertainment, information and value to its customers. We believe that both Viacom and Liberty Interactive will be above average growers and that they will produce much more cash than they need to support their growth. We are pleased to now have full positions in these focused businesses.

Best wishes,

Schedule of Investments—June 30, 2006 (Unaudited)