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 (9/30/06) AS COMPARED TO THE STANDARD & POOR'S 500 INDEX2 (UNAUDITED)
	Average Annual Total Returns (as of 9/30/06)
(Unaudited)	Total Return Last 3 Months*	1-year	5-year	Since Inception (11/1/96)
Oakmark Select Fund (Class I)	3.02%	9.58%	8.07%	17.83%
S&P 500	5.67%	10.79%	6.97%	8.39%
S&P MidCap 4007	-1.08%	6.56%	13.08%	13.46%
Lipper Mid Cap Value Index8	2.61%	9.20%	13.64%	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 gained 3% for the quarter, bringing the fiscal year gain to 10%. Though good on an absolute basis, the Fund's returns fell short of the S&P 500's 6% for the quarter and 11% for the fiscal year. Despite underperforming for the quarter, we believe the month of September, when oil prices fell by more than 10%, finally demonstrated the positive relative performance we expect to see if commodity prices fall. In September, Oakmark Select gained 5% while the S&P gained only 3%. We continue to believe that most of the attractive stocks today are in businesses that are less economically sensitive and would benefit from declining prices for energy and other basic materials.

During the quarter, the strongest contributor to our positive performance was McDonald's. In addition to achieving good results at its restaurants, McDonald's announced a creative approach for spinning-off their ownership in Chipotle. Chipotle is a restaurant chain that is a small, marginally profitable, but rapidly growing business—characteristics that often appeal to different investors than those who own McDonald's. By requiring shareholders to exchange their McDonald's shares to obtain Chipotle shares, McDonald's is effectively using its Chipotle ownership to fund a share repurchase. Good things happen to per-share-value when earnings are increasing while shares outstanding are decreasing! We much prefer investing with managements who evaluate their success using per-share metrics, thinking like shareholders, than with those who use corporate metrics, thinking like professional managers.

For the fiscal year, the Fund's largest holding, Washington Mutual, was also the largest contributor to our return. Increasing 15%, Washington Mutual was not our best performer (another bank, JP Morgan was), but because of our large weighting, its performance helped the Fund the most. We continue to believe that retail banking has good growth prospects, and with both Washington Mutual and JP Morgan selling at below average P/E⁹ multiples, we believe they will continue to be good long-term performers.

Best wishes,

Schedule of Investments—September 30, 2006