THE OAKMARK GLOBAL SELECT FUND Report from Bill Nygren and David Herro, Portfolio Managers

THE VALUE OF A $10,000 INVESTMENT IN THE OAKMARK GLOBAL SELECT FUND FROM ITS INCEPTION (10/2/06) TO PRESENT (6/30/07) AS COMPARED TO THE MSCI WORLD INDEX12
	Total Return (as of 6/30/07)
	Last 3 Months*	Since Inception (10/2/06)
Oakmark Global Select Fund (Class I)	7.78%	20.63%
MSCI World	6.51%	18.30%
Lipper Global Fund Index13	6.87%	18.86%
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.
Expense Ratio as of 10/2/06 was 1.75% after accounting for a contractual expense reimbursement. 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 Global Select Fund returned 8% for the quarter ending June 30, 2007, which compares favorably to the MSCI World Index return of 7%.

Impact Players

Contrary to last quarter, the domestic holdings outperformed international holdings, and all of the top three contributors were domestic. Schering- Plough Corp., a worldwide pharmaceutical company, was the top contributor returning 25% during the quarter. Schering has improved sales and research productivity while maintaining good cost controls led by CEO Fred Hassan. Schering’s strong product portfolio, particularly Vytorin, Nasonex, and Remicad, has led to excellent revenue and margin performance. Another top contributor to the Fund was Intel, which returned 25% during the quarter. Intel suffered several quarters of market share losses to AMD, but they have regained product momentum. Leveraging their R&D and manufacturing superiority, Intel has accelerated the introduction of new microprocessor chips. Intel’s rich mix of notebook, server, and desktop chips should lead to further margin and market share increases. Rounding out the top three is Dell, which returned 23% during the quarter. With Michael Dell reassuming the role as CEO, the company has taken several bold steps to improve growth and profitability. Head-count will be reduced, new products will offer more consumer appeal, and Dell will enter the retail channel for the first time. Strong server, notebook, and services growth produced much better than expected Q1 results.

The largest detractor to performance for the Fund was Japan-based Daiwa Securities with general market weakness in Japan to blame. Novartis was the second largest detractor from the Fund, returning -4% for the quarter. The FDA requested Novartis pull Zelnorm, used to treat irritable bowel syndrome, from the market after a very marginal increase in heart risk was identified in a study. The FDA requested additional safety studies for Galvus, which will likely result in a 12-18 month delay in that drug’s release. Our long-term outlook on the valuation of both companies remains favorable.

Portfolio Composition

During the quarter we sold our entire positions of Nikko Cordial and Schering as more attractive investment opportunities arose. We initiated positions in Daiwa Securities and Novartis during the quarter. As you may recall, Nikko Cordial was added to the portfolio during the first quarter of 2007 when it was trading near its 52-week low. At that time, it replaced Daiwa Securities because it presented a more attractive investment.

Since then, Nikko’s stock price has risen, reflecting Citi-group’s bid to acquire a majority shareholding. Due to the price increase, the holding was sold from the portfolio as Daiwa again represented a more attractive investment.

As long-term value investors, we continue to focus on finding attractive, under-valued companies trading at discounts with management teams focused on building shareholder value.

Global Diversification—June 30, 2007 (Unaudited)

Schedule of Investments—June 30, 2007 (Unaudited)