THE OAKMARK INTERNATIONAL FUND Report from David G. Herro

THE VALUE OF A $10,000 INVESTMENT IN THE OAKMARK INTERNATIONAL FUND FROM ITS INCEPTION (9/30/92) TO PRESENT (9/30/07) AS COMPARED TO THE MSCI WORLD EX U.S. INDEX14 (UNAUDITED)
	Average Annual Total Returns (as of 9/30/07)
(Unaudited)	Total Return Last 3 Months*	1-year	5-year	10-year	Since Inception (9/30/92)
Oakmark International Fund (Class I)	-3.48%	14.53%	22.78%	10.84%	13.31%
MSCI World ex U.S.	2.71%	25.85%	24.08%	8.30%	9.68%
MSCI EAFE15	2.18%	24.87%	23.56%	7.97%	9.41%
Lipper International Fund Index16	3.51%	27.57%	23.65%	8.70%	10.70%
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 9/30/07 was 1.05%.
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 International Fund returned -3% for the quarter ended September 30, 2007, lagging behind the return of 3% for the MSCI World ex U.S. Index. More importantly, however, since the Fund's inception in September 1992, it is up 13% per annum, which compares favorably with the MSCI World ex U.S. Index's return of 10% over the same period.

Impact Players

Schroders plc, a UK-based asset management group, was the quarter's largest contributor, returning 11%. Strong retail business growth in the UK and Asia produced positive results. Even though the group's UK and Japanese institutional products experienced significant outflows, the company's revenue still increased because new assets flowed into higher fee-based products. A top contributor in the second quarter of 2007, UK-based British Sky Broadcasting Group ("BskyB") was again a top contributor last quarter, returning 10%. BskyB continues to grow its pay-television market and has maintained its successful strategy, cross-selling products in its broadband and telephony service. Low operating costs have allowed BskyB to price aggressively and gain market share from competitors British Telecom and Virgin Media. Rounding out the top three contributors is Swiss-based Nestle S.A., which has benefited from stronger than expected growth and margin improvement across most product lines. Nestle S.A. has aggressively increased its prices—a trend that is expected to continue.

Adecco S.A., a Swiss-based personnel and temporary employment company and second quarter's largest contributor, was last quarter's largest detractor to performance with the price falling 24%. Declining sales in the U.S. and declining profits in the UK (20+% of profits) have weakened shares despite profit growth and margin gains in France (35% of profits). Short-term turnarounds are unlikely in both countries as economic outlooks remain challenging. Management remains focused on improving core margins and diversifying into specialty staffing. Another detractor for the quarter was Signet Group, the world's largest specialty jewelry retailer. The group continues to focus on gaining market share in the U.S. and has managed to outperform its peers in a difficult market environment. Television Francaise 1, France's largest television broadcaster, was also a detractor for the quarter with the price falling 23%. Earnings and sales results for 1H failed to meet the Street's forecasts and caused significant weakness in share price. On a positive note, the French media regulatory environment, one of the most stringent in Europe, is likely to be reformed given recent changes in government control. We maintain our positive outlook on these companies and believe they will become solid contributors to the portfolio.

Portfolio Composition

In order to take advantage of extreme market volatility during the last quarter, our activity was greater than normal. We sold our positions in Willis Group, Vodafone Group, ANZ Banking, United Overseas Bank, Akzo Nobel, Sanofi-Aventis, NTT Docomo, and Syngenta AG as they reached fair value. Four new names were added to the portfolio: Barclays plc, a UK-based financial services group; Experian Group, credit service and marketing solutions provider; SAP AG, a global software company; Richemont SA, manufacturer and luxury goods retailer of famous brands such as Cartier and Montblanc.

In closing, as discussed in the International lead letter, we are long-term value investors and focus on finding attractive, under-valued foreign companies trading at at least a 30% discount to its measured worth. We welcome market weakness and instability because they create opportunities that allow us to invest in quality companies trading at low prices.

International Diversification—September 30, 2007 (Unaudited)

Schedule of Investments—September 30, 2007

See accompanying Notes to Financial Statements.