THE OAKMARK FUNDS

Statements of Assets and Liabilities—September 30, 2006

    The Oakmark
Fund
The Oakmark
Select
Fund

Assets      
Investments in unaffiliated securities, at value (a) $5,514,090,383 $5,874,462,832
Investments in affiliated securities, at value (b) 0 0
Cash   0 70
Foreign currency, at value (c) 0 0
Receivable for:      
Securities sold   7,929,876 0
Fund shares sold   3,811,419 4,248,492
Dividends and interest   6,011,811 2,337,106
Securities sold short   0 21,737,301
Tax reclaim   112,603 0
   

Total receivables   17,865,709 28,322,899
Other assets   438 440
   

Total assets   $5,531,956,530 $5,902,786,241

Liabilities and Net Assets      
Payable for:      
Securities purchased   $0 $0
Fund shares redeemed   5,406,529 33,545,886
Securities sold short, at value (d) 0 21,840,500
Investment advisory fees   273,033 266,831
Transfer and dividend disbursing agent fees   220,814 140,984
Trustee fees   32,716 34,356
Deferred trustee compensation   1,013,952 886,520
Other   1,350,563 1,376,878
   

Total liabilities   8,297,607 58,091,955
   

Net assets applicable to Fund shares outstanding   $5,523,658,923 $5,844,694,286
   




Analysis of Net Assets      
Paid in capital   $3,736,773,177 $3,561,682,562
Accumulated undistributed net realized gain of investments, forward contracts, options, short sales and foreign currency transactions   225,445,185 570,164,515
Net unrealized appreciation of investments and foreign currencies   1,508,736,212 1,674,753,557
Net unrealized appreciation (depreciation)—other   1,909 0
Accumulated undistributed net investment income   52,702,440 38,093,652
   

Net assets applicable to Fund shares outstanding   $5,523,658,923 $5,844,694,286
   




Price of Shares      
Net asset value per share: Class I   $44.64 $34.48
   



Class I—Net assets   $5,486,180,831 $5,776,588,527
Class I—Shares outstanding (Unlimited shares authorized)   122,890,761 167,554,680
Net asset value per share: Class II   $44.35 $34.23
   



Class II—Net assets   $37,478,092 $68,105,759
Class II—Shares outstanding (Unlimited shares authorized)   845,119 1,989,425
       
(a) Identified cost of investments in unaffiliated securities   $4,005,354,171 $4,199,606,076
(b) Identified cost of investments in affiliated securities   0 0
(c) Identified cost of foreign currency   0 0
(d) Proceeds on securities sold short   0 21,737,301

  

  The Oakmark
Equity and
Income Fund
The Oakmark
Global
Fund
The Oakmark
International
Fund
The Oakmark
International
Small Cap Fund

Assets        
Investments in unaffiliated securities, at value $10,866,411,602 $2,360,028,112 $7,059,465,547 $1,058,292,943
Investments in affiliated securities, at value 182,116,978 0 631,739,089 216,936,164
Cash 62 25 1,318 0
Foreign currency, at value 0 0 39 241,844
Receivable for:        
Securities sold 940,471 1,401,802 7,572,665 0
Fund shares sold 65,154,223 3,258,372 8,725,525 1,512,489
Dividends and interest 62,048,734 4,546,522 16,448,896 1,289,989
Securities sold short 0 0 0 0
Tax reclaim 76,083 212,663 1,039,260 569,215
 



Total receivables 128,219,511 9,419,359 33,786,346 3,371,693
Other assets 431,120 277 437 241
 



Total assets $11,177,179,273 $2,369,447,773 $7,724,992,776 $1,278,842,885

Liabilities        
Payable for:        
Securities purchased $23,374,465 $7,644,126 $9,730,616 $1,900,702
Fund shares redeemed 16,656,879 1,258,617 15,339,251 808,307
Securities sold short, at value 0 0 0 0
Investment advisory fees 438,446 126,274 370,702 77,115
Transfer and dividend disbursing agent fees 154,981 59,202 103,983 17,728
Trustee fees 48,466 23,041 38,242 19,929
Deferred trustee compensation 784,051 410,853 681,683 396,099
Other 3,105,081 616,768 2,187,418 310,626
 



Total liabilities 44,562,369 10,138,881 28,451,895 3,530,506
 



Net assets applicable to Fund shares outstanding $11,132,616,904 $2,359,308,892 $7,696,540,881 $1,275,312,379
 








Analysis of Net Assets        
Paid in capital $8,766,146,099 $1,585,362,561 $4,876,782,899 $791,275,831
Accumulated undistributed net realized gain of investments, forward contracts, options, short sales and foreign currency transactions 538,854,084 281,053,755 972,651,598 159,754,643
Net unrealized appreciation of investments and foreign currencies 1,663,755,245 470,105,234 1,733,351,273 313,471,159
Net unrealized appreciation (depreciation)—other 483,716 40,176 (81,091) (5,494)
Accumulated undistributed net investment income 163,377,760 22,747,166 113,836,202 10,816,240
 



Net assets applicable to Fund shares outstanding $11,132,616,904 $2,359,308,892 $7,696,540,881 $1,275,312,379
 








Price of Shares        
Net asset value per share: Class I $26.49 $26.69 $26.83 $24.09
 







Class I—Net assets $10,414,522,263 $2,282,188,653 $7,200,507,048 $1,274,547,457
Class I—Shares outstanding (Unlimited shares authorized) 393,158,290 85,502,945 268,357,156 52,915,833
Net asset value per share: Class II $26.35 $26.31 $26.61 $24.05
 







Class II—Net assets $718,094,641 $77,120,239 $496,033,833 $764,922
Class II—Shares outstanding (Unlimited shares authorized) 27,256,462 2,931,310 18,643,501 31,810
(a) Identified cost of investments in unaffiliated securities $9,298,867,346 $1,889,869,556 $5,450,446,599 $781,174,690
(b) Identified cost of investments in affiliated securities 85,905,989 0 507,349,773 180,577,739
(c) Identified cost of foreign currency 0 0 23 241,906
(d) Proceeds on securities sold short 0 0 0 0

See accompanying Notes to Financial Statements.