HARRIS ASSOCIATES INVESTMENT TRUST, 497K1, 1999-05-04

HARRIS ASSOCIATES INVESTMENT TRUST
497K1, 1999-05-04

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<PAGE>

------------------------------
THE OAKMARK
FAMILY OF FUNDS

FUND PROFILES - MARCH 1999
CLASS I SHARES
------------------------------

THE OAKMARK
FUND

THE OAKMARK
SELECT FUND

THE OAKMARK
SMALL CAP FUND

THE OAKMARK
EQUITY & INCOME FUND

THE OAKMARK
INTERNATIONAL FUND

THE OAKMARK
INTERNATIONAL
SMALL CAP FUND

NO-LOAD FUNDS
MANAGED BY
HARRIS
[LOGO] ASSOCIATES L.P.

- --------------------------------------------------------------------------------

These Profiles summarize key information about the Funds that is included in the
Funds' prospectus. The Funds' prospectus includes additional information about
the Funds, including a more detailed description of the risks associated with
investing in the Funds that you may want to consider before you invest. You may
obtain the prospectus and other information about the Funds at no cost by
calling us at 1-800-OAKMARK (1-800-625-6275) or accessing our Web site at
www.oakmark.com.

<PAGE>

THE OAKMARK FAMILY OF FUNDS
- --------------------------------------------------------------------------------
THE OAKMARK FUND
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

THE OAKMARK FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN
U.S. EQUITY SECURITIES.

INVESTMENT STRATEGY
The Oakmark Fund's investment strategy emphasizes a disciplined bottom-up stock
selection process. Investment decisions are not based on forecasts of
macroeconomic variables, such as interest rates or the economy. Rather, the
Fund's adviser, Harris Associates L.P., uses a value investment strategy that
seeks investment opportunities among companies whose shares trade in the market
at significant discounts to what Harris Associates believes is their true
business value.

Selected companies are subjected to a comprehensive screening process to isolate
the primary reasons why each company is undervalued and may be purchased at a
discount from its apparent value. Harris Associates' analysts review a company's
ability to generate cash because this measure ultimately determines how the firm
builds value for its shareholders. An important part of the investment strategy
is a thorough assessment of a company's management team. Visits and interviews
are an integral part of the research process, as the adviser believes that
investing with proven, capable managers reduces the risks of equity investing.
The adviser also believes that management's interests are strongly aligned with
the interests of its stockholders if their compensation and personal wealth are
directly tied to the value of the business.

Harris Associates' investment professionals set disciplined buy-sell targets for
each security. They continually monitor the portfolio holdings and sell a
holding within a reasonable time after it reaches its sell target.

Additional information about the Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during the last fiscal year. You
may obtain these reports at no cost by calling us at 1-800-OAKMARK.

SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK FUND
The primary risk factor of equity investing is the fluctuation of value and
possible loss of investment. As with all funds, at any given time, the value of
your shares may be worth more or less than the price you paid.

Market performance tends to be cyclical, and in the various cycles, certain
investment styles may be in or out of favor. If the market is not favoring the
Fund's investment style, the Fund's gains may not be as big as, or their losses
may be bigger than, other equity funds using different investment styles.

Although the adviser invests the Fund's assets primarily in U.S. stocks, the
Fund may invest in securities of non-U.S. companies. Foreign securities may
entail additional risks, including fluctuations in currency exchange rates,
unstable political and economic structures, reduced availability of public
information and the lack of uniform financial reporting and regulatory practices
similar to those that apply to U.S. issuers.

SUITABILITY
Investors seeking long-term capital appreciation should consider an investment
in The Oakmark Fund. Although income is considered in the selection of
securities, the Fund is not designed for investors whose primary investment
objective is income.

2
<PAGE>

[PHOTO] FUND PORTFOLIO MANAGER
Robert J. Sanborn, CFA, is an executive vice president and portfolio
manager of The Oakmark Fund. He has been the manager of The Oakmark
Fund since its inception in August 1991. Sanborn joined Harris
Associates L.P. in 1988.

FUND PERFORMANCE
The bar chart to the right shows the actual performance of Oakmark's Class I
shares for each calendar year since the Fund's inception on August 5, 1991. The
bar chart indicates the volatility of the Fund's historical returns from year to
year. Neither the bar chart nor the performance information shown is intended to
indicate how the Fund will perform in the future.

The highest and lowest returns of the Fund's Class I shares for a calendar
quarter since the fund's inception on August 5, 1991, are provided in the chart
below to indicate the fund's historical short-term volatility. Shareholders
should be aware, however, that The Oakmark Fund is intended for investors with a
long-term investment horizon and is not managed for short-term results.

HIGHEST AND LOWEST QUARTERLY RETURNS

[CHART]

<TABLE>
<CAPTION>
HIGH LOW
<S> <C>
Qtr Ended Qtr Ended
12/31/91 9/30/98

17.83% -13.83%
</TABLE>

The table to the right shows the average annual return of the Fund's Class I
shares for the periods indicated. The S&P 500 Index, an unmanaged index that
reflects no operating costs, is included as a benchmark for long-term
performance comparisons.

ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98

[CHART]

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 3/31/99
<TABLE>
<CAPTION>
Since
Fund and Inception Date 1 Year 5 Years Inception
<S> <C> <C> <C>
Oakmark 8/5/91 -6.10% 18.17% 25.20%
S&P 500 Index* 18.46% 26.23% 19.80%
</TABLE>

*The S&P 500 is a broad market-weighted average dominated by blue-chip stocks.

3
<PAGE>

THE OAKMARK FAMILY OF FUNDS
- --------------------------------------------------------------------------------
THE OAKMARK SELECT FUND
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

THE OAKMARK SELECT FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING
PRIMARILY IN A NON-DIVERSIFIED PORTFOLIO OF U.S. EQUITY SECURITIES.

INVESTMENT STRATEGY
The Oakmark Select Fund's investment strategy emphasizes a disciplined bottom-up
stock selection process. Investment decisions are not based on forecasts of
macroeconomic variables, such as interest rates or the economy. Rather, the
Fund's adviser, Harris Associates L.P., uses a value investment strategy that
seeks investment opportunities among companies whose shares trade in the market
at significant discounts to what Harris Associates believes is their true
business value.

SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK SELECT FUND
The primary risk factor of equity investing is the fluctuation of value and
possible loss of investment. As with all funds, at any given time, the value of
your shares may be worth more or less than the price you paid.

There are risks associated with investing in a concentrated portfolio that may
work to the advantage or disadvantage of the investor. Since the Fund may invest
up to 25% of its assets in a single portfolio security, the appreciation or
depreciation of such a security will have a greater impact on the Fund's

4
<PAGE>

[PHOTO] FUND PORTFOLIO MANAGER
William C. Nygren, CFA, is a vice president and portfolio manager of
The Oakmark Select Fund. He has been the manager of The Oakmark Select
Fund since its inception in November 1996. Prior to managing The
Oakmark Select Fund, Nygren was the director of research for Harris
Associates L.P. from 1990 to 1998. He joined Harris Associates L.P. in
1983.

share price, and the Fund's share price can be expected to fluctuate more than
the share price of a comparable "diversified" fund.

SUITABILITY
Investors seeking long-term capital appreciation should consider an investment
in The Oakmark Select Fund. Although income is considered in the selection of
securities, the Fund is not designed for investors whose primary investment
objective is income.

FUND PERFORMANCE
The bar chart to the right shows the actual performance of Oakmark Select's
Class I shares for each calendar year since the Fund's inception on
November 1, 1996. The bar chart indicates the volatility of the Fund's
historical returns from year to year. Neither the bar chart nor the performance
information shown is intended to indicate how the Fund will perform in the
future.

HIGHEST AND LOWEST QUARTERLY RETURNS

[CHART]

<TABLE>
<CAPTION>
HIGH LOW
<S> <C>
Qtr Ended Qtr Ended
12/31/98 9/30/98

21.49% -17.23%
</TABLE>

The highest and lowest returns of the Fund's Class I shares for a calendar
quarter since the fund's inception on November 1, 1996, are provided in the
chart to the left to indicate the fund's historical short-term volatility.
Shareholders should be aware, however, that The Oakmark Select Fund is intended
for investors with a long-term investment horizon and is not managed for
short-term results.

ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98

[CHART]

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 3/31/98
<TABLE>
<CAPTION>
Since
Fund and Inception Date 1 Year 5 Years Inception
<S> <C> <C> <C>
Oakmark Select 11/1/96 13.38% n/a 40.61%
S&P 500 Index* 18.46% n/a 30.40%
</TABLE>
*The S&P 500 is a broad market-weighted average dominated by blue-chip stocks.

The above table shows the average annual return of the Fund's Class I shares for
the periods indicated. The S&P 500 Index, an unmanaged index that reflects no
operating costs, is included as a benchmark for long-term performance
comparisons.

5
<PAGE>

THE OAKMARK FAMILY OF FUNDS
- --------------------------------------------------------------------------------
THE OAKMARK SMALL CAP FUND
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

THE OAKMARK SMALL CAP FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING
PRIMARILY IN U.S. COMPANIES WITH SMALL MARKET CAPITALIZATIONS.

INVESTMENT STRATEGY
The Oakmark Small Cap Fund's investment strategy emphasizes a disciplined
bottom-up stock selection process. Investment decisions are not based on
forecasts of macroeconomic variables, such as interest rates or the economy.
Rather, the Fund's adviser, Harris Associates L.P., uses a value investment
strategy that seeks investment opportunities among small capitalization
companies whose shares trade in the market at significant discounts to what
Harris Associates believes is their true business value.

Under normal market conditions, the Fund invests at least 65% of its total
assets, valued at the time of investment, in "small cap companies," as defined
in the Fund's prospectus.

SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK SMALL CAP FUND
The primary risk factor of equity investing is the fluctuation of value and
possible loss of investment. As with all funds, at any given time, the value of
your shares may be worth more or less than the price you paid.

Stock prices of small cap companies tend to be more volatile, and their markets
tend to be less liquid than those of large companies. Therefore, an investment
in a small cap fund may be more volatile and entail greater risk to capital than
an investment in a fund that invests in larger companies.

6
<PAGE>

[PHOTO] FUND PORTFOLIO MANAGER
Steven J. Reid, CFA, is a vice president and portfolio manager of The
Oakmark Small Cap Fund. He has been the manager of The Oakmark Small
Cap Fund since its inception in November 1995. Prior to managing The
Oakmark Small Cap Fund, Reid was a senior research analyst with Harris
Associates L.P. from 1985 to 1995. He joined Harris Associates L.P. in
1980.

SUITABILITY
Investors seeking long-term capital appreciation should consider an investment
in The Oakmark Small Cap Fund. Although income is considered in the selection of
securities, the Fund is not designed for investors whose primary investment
objective is income.

FUND PERFORMANCE
The bar chart to the right shows the actual performance of Oakmark Small Cap's
Class I shares for each calendar year since the Fund's inception on November 1,
1995. The bar chart indicates the volatility of the Fund's historical returns
from year to year. Neither the bar chart nor the performance information shown
is intended to indicate how the Fund will perform in the future.

The highest and lowest returns of the Fund's Class I shares for a calendar
quarter since the fund's inception on November 1, 1995, are provided in the
chart to the left to indicate the fund's historical short-term volatility.
Shareholders should be aware, however, that The Oakmark Small Cap Fund is
intended for investors with a long-term investment horizon and is not managed
for short-term results.

HIGHEST AND LOWEST QUARTERLY RETURNS

[CHART]

<TABLE>
<CAPTION>
HIGH LOW
<S> <C>
Qtr Ended Qtr Ended
12/31/98 9/30/98

17.65% -26.83%
</TABLE>

ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98

[CHART]

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 3/31/98
<TABLE>
<CAPTION>
Since
Fund and Inception Date 1 Year 5 Years Inception
<S> <C> <C> <C>
Oakmark Small Cap 11/1/95 -26.06% n/a 14.89%
Russell 2000 Index* -16.26% n/a 10.47%
</TABLE>
*The Russell 2000 Index measures the performance of smaller companies, and
represents approximately 10% of the total value of publicly traded companies in
the U.S.

The above table shows the average annual return of the Fund's Class I shares for
the periods indicated. The Russell 2000 Index, an unmanaged index that reflects
no operating costs, is included as a benchmark for long-term small cap
performance comparisons.

7
<PAGE>

THE OAKMARK FAMILY OF FUNDS
- --------------------------------------------------------------------------------
THE OAKMARK EQUITY AND INCOME FUND
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

THE OAKMARK EQUITY AND INCOME FUND SEEKS HIGH CURRENT INCOME AND PRESERVATION
AND GROWTH OF CAPITAL. THE FUND INVESTS PRIMARILY IN A DIVERSIFIED PORTFOLIO OF
U.S. EQUITY AND FIXED INCOME SECURITIES.

INVESTMENT STRATEGY
The Oakmark Equity and Income Fund's equity investment strategy emphasizes a
disciplined bottom-up stock selection process. Investment decisions are not
based on forecasts of macroeconomic variables, such as interest rates or the
economy. Rather, the Fund's adviser, Harris Associates L.P., uses a value
investment strategy that seeks investment opportunities among companies whose
shares trade in the market at significant discounts to what Harris Associates
believes is their true business value.

The Fund generally invests 50-65% of its total assets in equity securities,
25-50% in U.S. Government securities and other debt securities and up to 20% in
unrated or lower rated debt securities.

SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK EQUITY AND INCOME FUND
The primary risk factor of equity investing is the fluctuation of value and
possible loss of investment. As with all funds, at any given time, the value of
your shares may be worth more or less than the price you paid.

Investment in lower-grade debt securities involves greater investment risk,
including the possibility of issuer default or bankruptcy. In addition,
lower-quality bonds may be less sensitive to interest rate changes and are
generally more sensitive to adverse economic changes or individual corporate
develop-

8
<PAGE>

[PHOTO] FUND PORTFOLIO MANAGER
Clyde S. McGregor, CFA, is a vice president and portfolio manager of
The Oakmark Equity and Income Fund. He has been the manager of The
Oakmark Equity and Income Fund since its inception in November 1995.
In addition to managing The Oakmark Equity and Income Fund, McGregor
has managed separate accounts for individuals and institutions since
1986. He joined Harris Associates L.P. in 1981.

ments. Furthermore, the markets for lower-grade debt securities tend to be less
liquid than higher-quality debt securities. Therefore, their prices may be
volatile and involve greater risk to capital.

SUITABILITY
Investors seeking current income and preservation and growth of capital should
consider an investment in The Oakmark Equity and Income Fund. The Fund is
intended to present a balanced investment program between growth and income.

FUND PERFORMANCE
The bar chart to the right shows the actual performance of Oakmark Equity and
Income's Class I shares for each calendar year since the Fund's inception on
November 1, 1995. The bar chart indicates the volatility of the Fund's
historical returns from year to year. Neither the bar chart nor the performance
information shown is intended to indicate how the Fund will perform in the
future.

The highest and lowest returns of the Fund's Class I shares for a calendar
quarter since the fund's inception on November 1, 1995, are provided in the
chart to the left to indicate the fund's historical short-term volatility.
Shareholders should be aware, however, that The Oakmark Equity and Income Fund
is intended for investors with a long-term investment horizon and is not managed
for short-term results.

HIGHEST AND LOWEST QUARTERLY RETURNS

[CHART]

<TABLE>
<CAPTION>
HIGH LOW
<S> <C>
Qtr Ended Qtr Ended
12/31/98 9/30/98

10.54% -6.92%
</TABLE>

ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98

[CHART]

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 3/31/98
<TABLE>
<CAPTION>
Since
Fund and Inception Date 1 Year 5 Years Inception
<S> <C> <C> <C>
Oakmark Equity and Income 11/1/95 3.45% n/a 16.38%
Lipper Balanced Fund Index* 8.36% n/a 16.10%
</TABLE>
*The Lipper Balanced Fund Index Composite is comprised of 30 balanced funds.

The above table shows the average annual return of the Fund's Class I shares for
the periods indicated. The Lipper Balanced Fund Index Composite, an unmanaged
composite comprised of 30 balanced funds, is included as a benchmark for
long-term balanced performance comparisons.

9
<PAGE>

THE OAKMARK FAMILY OF FUNDS
- --------------------------------------------------------------------------------
THE OAKMARK INTERNATIONAL FUND
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

THE OAKMARK INTERNATIONAL FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING
PRIMARILY IN EQUITY SECURITIES OF NON-U.S. COMPANIES.

INVESTMENT STRATEGY
The Oakmark International Fund's investment strategy emphasizes a disciplined
bottom-up stock selection process. Investment decisions are not based on
forecasts of macroeconomic variables, such as interest rates or the economy.
Rather, the Fund's adviser, Harris Associates L.P., uses a value investment
strategy that seeks investment opportunities among companies whose shares trade
in the market at significant discounts to what Harris Associates believes is
their true business value. The Fund's investment strategy stresses stock
selection rather than primarily focusing on industries or countries.

SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK INTERNATIONAL FUND
The primary risk factor of equity investing is the fluctuation of value and
possible loss of investment. As with all funds, at any given time, the value of
your shares may be worth more or less than the price you paid.

An investment in the Fund entails the special risks of foreign investing,
including fluctuations in currency exchange rates, unstable political and
economic structures, reduced availability of public information and the lack of
uniform financial reporting and regulatory practices similar to those that apply
to U.S. issuers. Foreign securities markets in emerging market countries can be
extremely volatile and less liquid. It is expected that these factors will cause
the Fund's share price to be more volatile than that of a comparable U.S.-equity
only fund.

10
<PAGE>

[PHOTO] FUND PORTFOLIO MANAGERS
David G. Herro David G. Herro, CFA, is a vice president and portfolio
manager of The Oakmark International Fund. He has been the
manager of The Oakmark International Fund since its
inception in September 1992. He joined Harris Associates
L.P. in 1992.

[PHOTO] Michael J. Welsh, CFA, CPA, is a vice president and
Michael J. Welsh portfolio manager of The Oakmark International Fund. He has
been the co-manager of The Oakmark International Fund since
September 1995. Previously, he was an analyst with Harris
Associates L.P. He joined Harris Associates L.P. in 1992.

SUITABILITY
Investors seeking long-term capital appreciation should consider an investment
in The Oakmark International Fund. Although income is considered in the
selection of securities, the Fund is not designed for investors whose primary
investment objective is income.

FUND PERFORMANCE
The bar chart to the right shows the actual performance of Oakmark
International's Class I shares for each calendar year since the Fund's inception
on September 30, 1992. The bar chart indicates the volatility of the Fund's
historical returns from year to year. Neither the bar chart nor the performance
information shown is intended to indicate how the Fund will perform in the
future.

The highest and lowest returns of the Fund's Class I shares for a calendar
quarter since the fund's inception on September 30, 1992, are provided in the
chart below to indicate the fund's historical short-term volatility.
Shareholders should be aware, however, that The Oakmark International Fund is
intended for investors with a long-term investment horizon and is not managed
for short-term results.

HIGHEST AND LOWEST QUARTERLY RETURNS

[CHART]

<TABLE>
<CAPTION>
HIGH LOW
<S> <C>
Qtr Ended Qtr Ended
3/31/93 9/30/98

18.40% -19.41%
</TABLE>

ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98

[CHART]

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 3/31/98
<TABLE>
<CAPTION>
Since
Fund and Inception Date 1 Year 5 Years Inception
<S> <C> <C> <C>
Oakmark International 9/30/92 -7.55% 6.85% 12.30%
M.S. World ex U.S. Index* 5.17% 8.85% 11.31%
</TABLE>
*The Morgan Stanley World ex U.S. Index includes 19 country sub-indexes.

The above table shows the average annual return of the Fund's Class I shares for
the periods indicated. The Morgan Stanley World ex U.S. Index, an unmanaged
index that reflects no operating costs, is included as a benchmark for long-term
international performance comparisons.

11
<PAGE>

THE OAKMARK FAMILY OF FUNDS
- --------------------------------------------------------------------------------
THE OAKMARK INTERNATIONAL SMALL CAP FUND
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

THE OAKMARK INTERNATIONAL SMALL CAP FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY
INVESTING PRIMARILY IN EQUITY SECURITIES OF NON-U.S. COMPANIES WITH SMALL MARKET
CAPITALIZATIONS.

INVESTMENT STRATEGY
The Oakmark International Small Cap Fund's investment strategy emphasizes a
disciplined bottom-up stock selection process. Investment decisions are not
based on forecasts of macroeconomic variables, such as interest rates or the
economy. Rather, the Fund's adviser, Harris Associates L.P., uses a value
investment strategy that seeks investment opportunities among small
capitalization companies whose shares trade in the market at significant
discounts to what Harris Associates believes is their true business value. The
Fund's investment strategy stresses stock selection rather than primarily
focusing on industries or countries.

SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK INTERNATIONAL SMALL CAP FUND
The primary risk factor of equity investing is the fluctuation of value and
possible loss of investment. As with all funds, at any given time, the value of
your shares may be worth more or less than the price you paid.

Stock prices of small cap companies tend to be more volatile, and their markets
tend to be less liquid than those of large companies. Therefore, an investment

12
<PAGE>

[PHOTO] FUND PORTFOLIO MANAGERS
David G. Herro David G. Herro, CFA, is a vice president and portfolio
manager of The Oakmark International Small Cap Fund. He has
been the manager of The Oakmark International Small Cap Fund
since its inception in November 1995. Herro has also managed
The Oakmark International Fund since September 1992. He
joined Harris Associates L.P. in 1992.

[PHOTO] Michael J. Welsh, CFA, CPA, is a vice president and
Michael J. Welsh portfolio manager of The Oakmark International Small Cap
Fund. He has been the co-manager of The Oakmark
International Small Cap Fund since May 1997. Welsh has also
been the co-manager of The Oakmark International Fund since
September 1995. Prior to managing the funds, he was an
analyst with Harris Associates L.P. Welsh joined Harris
Associates L.P. in 1992.

in a small cap fund may be more volatile and entail greater risk to capital than
an investment in a fund that invests in larger companies.

SUITABILITY
Investors seeking long-term capital appreciation should consider an investment
in The Oakmark International Small Cap Fund. Although income is considered in
the selection of securities, the Fund is not designed for investors whose
primary investment objective is income.

FUND PERFORMANCE
The bar chart to the right shows the actual performance of Oakmark International
Small Cap's Class I shares for each calendar year since the Fund's inception on
November 1, 1995. The bar chart indicates the volatility of the Fund's
historical returns from year to year. Neither the bar chart nor the performance
information shown is intended to indicate how the Fund will perform in the
future.

The highest and lowest returns of the Fund's Class I shares for a calendar
quarter since the fund's inception on November 1, 1995, are provided in the
chart to the left to indicate the fund's historical short-term volatility.
Shareholders should be aware, however, that The Oakmark International Small Cap
Fund is intended for investors with a long-term investment horizon and is not
managed for short-term results.

HIGHEST AND LOWEST QUARTERLY RETURNS

[CHART]

<TABLE>
<CAPTION>
HIGH LOW
<S> <C>
Qtr Ended Qtr Ended
12/31/98 12/31/97

28.22% -23.91%
</TABLE>

ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98

[CHART]

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 3/31/98
<TABLE>
<CAPTION>
Since
Fund and Inception Date 1 Year 5 Years Inception
<S> <C> <C> <C>
Oakmark International Small Cap 11/1/95 14.78% n/a 8.27%
M.S. World ex U.S. Index* 5.17% n/a 10.55%
</TABLE>
*The Morgan Stanley World ex U.S. Index includes 19 country sub-indexes.

The table above shows the average annual return of the Fund's Class I shares for
the periods indicated. The Morgan Stanley World ex U.S. Index, an unmanaged
index that reflects no operating costs, is included as a benchmark for long-term
international performance comparisons.

13
<PAGE>

- --------------------------------------------------------------------------------
FEES AND EXPENSES OF THE OAKMARK FAMILY OF FUNDS
- --------------------------------------------------------------------------------

ANNUAL OPERATING EXPENSES (AS A PERCENTAGE OF NET ASSETS AS OF 9/30/98)

<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
EQUITY AND INTERNATIONAL
OAKMARK FUND SELECT FUND SMALL CAP INCOME FUND INTERNATIONAL SMALL CAP FUND
CLASS I CLASS I FUND CLASS I CLASS I FUND CLASS I CLASS I
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment
management 0.93% 0.98% 1.28% 0.74% 1.03% 1.27%
fee
- ---------------------------------------------------------------------------------------------------------------------------
12b-1 fees None None None None None None
- ---------------------------------------------------------------------------------------------------------------------------
Other expenses 0.15% 0.24% 0.17% 0.57% 0.29% 0.69%
- ---------------------------------------------------------------------------------------------------------------------------
Total Fund
operating 1.08% 1.22% 1.45% 1.31% 1.32% 1.96%
expenses
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>

The table to the right is intended to help you understand the costs and expenses
that an investor in the Fund may bear on a $1,000 investment over various time
periods assuming:
1. a 5% annual rate of return
2. the operating expense percentages shown above remain constant
3. reinvestment of all distributions, and
4. redemption at the end of each time period (SEE CHART)

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oakmark Fund Class I $11 $34 $59 $131
- --------------------------------------------------------------------------------
Select Fund Class I $12 $38 $66 $147
- --------------------------------------------------------------------------------
Small Cap Fund Class I $15 $46 $79 $174
- --------------------------------------------------------------------------------
Equity and Income Fund Class I $13 $41 $71 $157
- --------------------------------------------------------------------------------
International Fund Class I $13 $41 $72 $159
- --------------------------------------------------------------------------------
International Small Cap Fund Class I $20 $62 $106 $229
- --------------------------------------------------------------------------------
</TABLE>

OF COURSE, ACTUAL COSTS MAY BE HIGHER OR LOWER. USE THIS EXAMPLE TO COMPARE
COSTS OF INVESTING IN OTHER FUNDS.

PURCHASES
To make an initial purchase of shares, complete and sign the NEW ACCOUNT
REGISTRATION FORM and mail it to the Funds' transfer agent, State Street Bank &
Trust Company, Attention: Oakmark Funds, P.O. Box 8510, Boston, Massachusetts
02266-8510, together with a check for the total purchase amount payable to State
Street Bank & Trust Company. The Funds' minimum initial investment requirement
is $1,000 or $500 in the case of an Educational IRA or Automatic Investment Plan
or Payroll Deduction Plan. The minimum subsequent investment requirement is
$100.

The Trust will not accept cash, drafts, "starter" checks, third party checks,
or checks drawn on banks outside the United States.

Subsequent purchase options include wire transfer, automatic electronic
investment, payroll deduction investment and telephone investment. Call
1-800-OAKMARK, then choose menu option 2. The Funds may also be purchased
through brokers and banks

REDEMPTIONS
You may redeem shares by written request to State Street Bank & Trust,
Attention: Oakmark Funds at its address stated above. The request must:
1. identify the account number,
2. specify shares or dollar amounts to be redeemed,
3. be signed in ink by all account owners exactly as their names appear on the
account registration.
4. A signature guarantee may be required.

You may also redeem by calling the Funds' Voice Response System at 1-800-OAKMARK
and following the verbal instructions or by exchanging shares into another Fund
by calling 1-800-OAKMARK and choosing menu option 2.

DISTRIBUTIONS
Distributions, if any, are paid at least annually and may consist of long-term
capital gains, short-term capital gains and income dividends. Distributions are
reinvested in additional shares unless otherwise specified.

INVESTMENT ADVISER
Harris Associates L.P., a Chicago-based investment management firm, is the
adviser to The Oakmark Family of Funds. In addition to managing The Oakmark
Funds, the Firm manages equity, balanced and international portfolios for
individuals and institutions nationwide.

OTHER SERVICES
The Funds offer investments through Traditional, Roth, Educational, SIMPLE and
SEP IRA Plans.

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OAKMARK
FAMILY OF FUNDS

HARRIS ASSOCIATES L.P.
2 NORTH LASALLE STREET
CHICAGO, IL 60602-3790