THE OAKMARK FUNDS

Statements of Changes in Net Assets—September 30, 2006


The Oakmark Fund
 

Year Ended
September 30, 2006

 Year Ended
September 30, 2005
From Operations:    
Net investment income $53,784,303 $54,415,372
Net realized gain (loss) on investments 270,986,174 222,641,166
Net realized gain (loss) on foreign currency transactions (6,771) (8,888)
Net change in unrealized appreciation (depreciation) of investments and foreign currencies 238,673,740 106,334,519
Net change in unrealized appreciation (depreciation)—other 1,909 0
Net increase in net assets from operations 563,439,355 383,382,169
Distributions to shareholders from:    
Net investment income—Class I (51,650,726) (29,018,121)
Net investment income—Class II (231,758) (112,443)
Total distributions to shareholders (51,882,484) (29,130,564)
From Fund share transactions:    
Proceeds from shares sold—Class I 779,885,052 1,362,078,314
Proceeds from shares sold—Class II 6,336,611 24,293,697
Reinvestment of distributions—Class I 48,533,582 26,428,576
Reinvestment of distributions—Class II 201,619 63,924
Payments for shares redeemed—Class I (2,190,991,773) (1,874,276,130)
Payments for shares redeemed—Class II (16,267,132) (34,990,942)
Redemption fees—Class I 324,889 334,756
Redemption fees—Class II 680 0
Net increase (decrease) in net assets from Fund share transactions (1,371,976,472) (496,067,805)
Total decrease in net assets (860,419,601) (141,816,200)
Net assets:    
Beginning of period 6,384,078,524 6,525,894,724
End of period $5,523,658,923 $6,384,078,524
Undistributed net investment income $52,702,440 $50,807,392
Fund Share Transactions—Class I:    
Shares sold 18,756,564 33,399,717
Shares issued in reinvestment of dividends 1,171,177 648,872
Less shares redeemed (52,610,324) (45,831,912)
Net increase (decrease) in shares outstanding (32,682,583) (11,783,323)
Fund Share Transactions—Class II:    
Shares sold 152,248 602,472
Shares issued in reinvestment of dividends 4,883 1,576
Less shares redeemed (390,394) (874,201)
Net increase (decrease) in shares outstanding (233,263) (270,153)

See accompanying Notes to Financial Statements.

  


The Oakmark
Select Fund
 
Year Ended
September 30, 2006		 Year Ended
September 30, 2005
From Operations:    
Net investment income $65,028,737 $50,968,447
Net realized gain (loss) on investments 579,399,446 365,072,967
Net change in unrealized appreciation (depreciation) of investments (92,754,575) 19,063,862
Net increase in net assets from operations 551,673,608 435,105,276
Distributions to shareholders from:    
Net investment income—Class I (51,471,735) (41,681,659)
Net investment income—Class II (488,531) (456,984)
Net realized gain—Class I (313,884,121) 0
Net realized gain—Class II (4,367,840) 0
Total distributions to shareholders (370,212,227) (42,138,643)
From Fund share transactions:    
Proceeds from shares sold—Class I 971,797,581 1,213,430,549
Proceeds from shares sold—Class II 17,443,658 25,716,965
Reinvestment of distributions—Class I 352,444,215 39,145,855
Reinvestment of distributions—Class II 2,386,123 205,309
Payments for shares redeemed—Class I (1,635,155,035) (1,193,862,714)
Payments for shares redeemed—Class II (39,109,368) (45,645,335)
Redemption fees—Class I 251,026 183,103
Redemption fees—Class II 1,251 0
Net increase (decrease) in net assets from Fund share transactions (329,940,549) 39,173,732
Total increase (decrease) in net assets (148,479,168) 432,140,365
Net assets:    
Beginning of period 5,993,173,454 5,561,033,089
End of period $5,844,694,286 $5,993,173,454
Undistributed net investment income $38,093,652 $27,766,940
Fund Share Transactions—Class I:    
Shares sold 29,030,193 36,498,372
Shares issued in reinvestment of dividends 10,628,595 1,205,230
Less shares redeemed (48,799,020) (36,106,003)
Net increase (decrease) in shares outstanding (9,140,232) 1,597,599
Fund Share Transactions—Class II:    
Shares sold 523,360 781,192
Shares issued in reinvestment of dividends 72,263 6,346
Less shares redeemed (1,169,938) (1,385,275)
Net increase (decrease) in shares outstanding (574,315) (597,737)

See accompanying Notes to Financial Statements.

 


The Oakmark
Equity and Income Fund
 
Year Ended
September 30, 2006		 Year Ended
September 30, 2005
From Operations:    
Net investment income $193,197,493 $119,409,290
Net realized gain (loss) on investments 545,472,604 113,595,101
Net realized gain (loss) on foreign currency transactions 953,110 349,069
Net change in unrealized appreciation (depreciation) of investments (77,004,918) 912,480,570
Net change in unrealized appreciation (depreciation)—other 254,072 102,972
Net increase in net assets from operations 662,872,361 1,145,937,002
Distributions to shareholders from:    
Net investment income—Class I (127,230,307) (67,147,479)
Net investment income—Class II (6,660,455) (3,563,528)
Net realized gain—Class I (76,265,144) (196,511,764)
Net realized gain—Class II (4,944,566) (13,715,030)
Total distributions to shareholders (215,100,472) (280,937,801)
From Fund share transactions:    
Proceeds from shares sold—Class I 2,056,526,635 1,820,363,521
Proceeds from shares sold—Class II 311,212,011 312,413,005
Reinvestment of distributions—Class I 193,933,598 254,487,605
Reinvestment of distributions—Class II 7,917,854 7,740,318
Payments for shares redeemed—Class I (1,479,474,288) (1,238,425,257)
Payments for shares redeemed—Class II (210,686,071) (273,110,583)
Redemption fees—Class I 190,842 194,331
Redemption fees—Class II 4,611 0
Net increase (decrease) in net assets from Fund share transactions 879,625,192 883,662,940
Total increase in net assets 1,327,397,081 1,748,662,141
Net assets:    
Beginning of period 9,805,219,823 8,056,557,682
End of period $11,132,616,904 $9,805,219,823
Undistributed net investment income $163,377,760 $104,982,979
Fund Share Transactions—Class I:    
Shares sold 80,485,715 76,592,615
Shares issued in reinvestment of dividends 7,695,778 10,997,735
Less shares redeemed (57,994,019) (52,314,769)
Net increase (decrease) in shares outstanding 30,187,474 35,275,581
Fund Share Transactions—Class II:    
Shares sold 12,229,061 13,294,303
Shares issued in reinvestment of dividends 315,076 335,369
Less shares redeemed (8,300,682) (11,403,546)
Net increase (decrease) in shares outstanding 4,243,455 2,226,126

See accompanying Notes to Financial Statements.

  


The Oakmark
Global Fund
 
Year Ended
September 30, 2006		 Year Ended
September 30, 2005
From Operations:    
Net investment income $24,869,019 $13,170,380
Net realized gain (loss) on investments 310,301,304 55,983,090
Net realized gain (loss) on foreign currency transactions 6,838,930 2,655,497
Net change in unrealized appreciation (depreciation) of investments and foreign currencies 2,947,332 268,798,583
Net change in unrealized appreciation (depreciation)—other 163,945 (200,695)
Net increase in net assets from operations 345,120,530 340,406,855
Distributions to shareholders from:    
Net investment income—Class I (20,913,767) (7,092,334)
Net investment income—Class II (581,696) (103,658)
Net realized gain—Class I (76,617,645) (25,218,974)
Net realized gain—Class II (2,579,429) (520,696)
Total distributions to shareholders (100,692,537) (32,935,662)
From Fund share transactions:    
Proceeds from shares sold—Class I 439,182,726 414,769,896
Proceeds from shares sold—Class II 17,019,479 29,165,244
Reinvestment of distributions—Class I 92,918,085 30,609,171
Reinvestment of distributions—Class II 2,954,863 557,171
Payments for shares redeemed—Class I (329,606,864) (238,881,611)
Payments for shares redeemed—Class II (9,199,239) (3,289,295)
Redemption fees—Class I 104,623 81,661
Redemption fees—Class II 2,156 0
Net increase (decrease) in net assets from Fund share transactions 213,375,829 233,012,237
Total increase in net assets 457,803,822 540,483,430
Net assets:    
Beginning of period 1,901,505,070 1,361,021,640
End of period $2,359,308,892 $1,901,505,070
Undistributed net investment income $22,747,166 $13,892,204
Fund Share Transactions—Class I:    
Shares sold 17,806,211 18,829,404
Shares issued in reinvestment of dividends 3,942,219 1,443,149
Less shares redeemed (13,308,581) (10,924,262)
Net increase (decrease) in shares outstanding 8,439,849 9,348,291
Fund Share Transactions—Class II:    
Shares sold 699,957 1,339,114
Shares issued in reinvestment of dividends 126,818 26,519
Less shares redeemed (375,302) (151,324)
Net increase (decrease) in shares outstanding 451,473 1,214,309

See accompanying Notes to Financial Statements.

  


The Oakmark
International Fund
 
Year Ended
September 30, 2006		 Year Ended
September 30, 2005
From Operations:    
Net investment income $121,327,693 $67,741,309
Net realized gain (loss) on investments 1,022,230,924 231,949,113
Net realized gain (loss) on foreign currency transactions 85,933,770 12,385,971
Net change in unrealized appreciation (depreciation) of investments and foreign currencies 131,694,166 848,532,506
Net change in unrealized appreciation (depreciation)—other 294,298 (671,292)
Net increase in net assets from operations 1,361,480,851 1,159,937,607
Distributions to shareholders from:    
Net investment income—Class I (144,087,090) (57,688,379)
Net investment income—Class II (8,528,390) (3,146,570)
Net realized gain—Class I (241,359,448) (11,785,113)
Net realized gain—Class II (15,880,415) (790,281)
Total distributions to shareholders (409,855,343) (73,410,343)
From Fund share transactions:    
Proceeds from shares sold—Class I 1,307,428,773 1,220,262,175
Proceeds from shares sold—Class II 271,362,458 191,988,151
Reinvestment of distributions—Class I 348,431,594 63,036,515
Reinvestment of distributions—Class II 16,204,525 2,198,011
Payments for shares redeemed—Class I (975,665,459) (713,216,070)
Payments for shares redeemed—Class II (213,303,958) (156,918,221)
Redemption fees—Class I 198,369 261,391
Redemption fees—Class II 9,557 0
Net increase (decrease) in net assets from Fund share transactions 754,665,859 607,611,952
Total increase in net assets 1,706,291,367 1,694,139,216
Net assets:    
Beginning of period 5,990,249,514 4,296,110,298
End of period $7,696,540,881 $5,990,249,514
Undistributed net investment income $113,836,202 $71,132,509
Fund Share Transactions—Class I:    
Shares sold 53,137,278 56,890,583
Shares issued in reinvestment of dividends 15,492,735 3,074,952
Less shares redeemed (39,575,515) (33,360,212)
Net increase (decrease) in shares outstanding 29,054,498 26,605,323
Fund Share Transactions—Class II:    
Shares sold 11,066,476 8,978,667
Shares issued in reinvestment of dividends 724,062 107,693
Less shares redeemed (8,682,291) (7,296,822)
Net increase (decrease) in shares outstanding 3,108,247 1,789,538

See accompanying Notes to Financial Statements.

  


The Oakmark International
Small Cap Fund
 
Year Ended
September 30, 2006		 Year Ended
September 30, 2005
From Operations:    
Net investment income $19,607,669 $8,562,439
Net realized gain (loss) on investments 177,109,165 163,621,128
Net realized gain (loss) on foreign currency transactions 14,662,887 362,424
Net change in unrealized appreciation (depreciation) of investments and foreign currencies 71,230,284 47,885,993
Net change in unrealized appreciation (depreciation)—other 43,207 (85,458)
Net increase in net assets from operations 282,653,212 220,346,526
Distributions to shareholders from:    
Net investment income—Class I (31,166,621) (11,222,305)
Net investment income—Class II (18,114) (6,999)
Net realized gain—Class I (156,716,232) (15,538,999)
Net realized gain—Class II (93,410) (10,001)
Total distributions to shareholders (187,994,377) (26,778,304)
From Fund share transactions:    
Proceeds from shares sold—Class I 201,993,652 180,090,052
Proceeds from shares sold—Class II 144,934 112,795
Reinvestment of distributions—Class I 176,611,867 24,846,478
Reinvestment of distributions—Class II 64,080 10,284
Payments for shares redeemed—Class I (205,919,657) (125,328,062)
Payments for shares redeemed—Class II (101,375) (110,335)
Redemption fees—Class I 48,587 38,178
Redemption fees—Class II 19 0
Net increase (decrease) in net assets from Fund share transactions 172,842,107 79,659,390
Total increase in net assets 267,500,942 273,227,612
Net assets:    
Beginning of period 1,007,811,437 734,583,825
End of period $1,275,312,379 $1,007,811,437
Undistributed net investment income $10,816,240 $5,933,633
Fund Share Transactions—Class I:    
Shares sold 9,211,608 8,779,360
Shares issued in reinvestment of dividends 8,974,181 1,298,823
Less shares redeemed (9,457,429) (6,084,980)
Net increase (decrease) in shares outstanding 8,728,360 3,993,203
Fund Share Transactions—Class II:    
Shares sold 6,780 5,611
Shares issued in reinvestment of dividends 3,259 537
Less shares redeemed (4,539) (5,127)
Net increase (decrease) in shares outstanding 5,500 1,021

See accompanying Notes to Financial Statements.