N-Q 1 a2160936zn-q.txt N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-06279 Harris Associates Investment Trust (Exact name of Registrant as specified in charter) Two North LaSalle Street, Suite 500 Chicago, Illinois 60602-3790 (Address of principal executive offices) (Zip Code) John R. Raitt Cameron S. Avery Harris Associates L.P. Bell, Boyd & Lloyd LLC Two North LaSalle Street, #500 Three First National Plaza, #3100 Chicago, Illinois 60602 Chicago, Illinois 60602 (Name and address of agents for service) Registrant's telephone number, including area code: (312) 621-0600 Date of fiscal year end: 09/30/05 Date of reporting period: 06/30/05 ITEM 1. SCHEDULE OF INVESTMENTS. THE OAKMARK FUND SCHEDULE OF INVESTMENTS--JUNE 30, 2005 (UNAUDITED)
NAME SHARES HELD MARKET VALUE ---------------------------------------------------------------------------------------------------------- COMMON STOCKS--94.2% APPAREL RETAIL--3.9% The Gap, Inc. 7,066,700 139,567,325 Limited Brands 5,728,047 122,694,767 --------------- 262,262,092 BROADCASTING & CABLE TV--8.3% Liberty Media Corporation, Class A (a) 16,199,400 165,071,886 The DIRECTV Group, Inc. (a) 9,700,000 150,350,000 Comcast Corporation, Special Class A (a) 4,725,000 141,513,750 EchoStar Communications Corporation, Class A 3,675,000 110,801,250 --------------- 567,736,886 DEPARTMENT STORES--2.3% Kohl's Corporation (a) 2,750,500 153,780,455 HOME IMPROVEMENT RETAIL--2.2% The Home Depot, Inc. 3,781,500 147,100,350 HOMEBUILDING--1.9% Pulte Homes, Inc. 1,500,000 126,375,000 HOUSEHOLD APPLIANCES--2.1% The Black & Decker Corporation 1,622,200 145,754,670 HOUSEWARES & SPECIALTIES--2.3% Fortune Brands, Inc. 1,745,600 155,009,280 LEISURE PRODUCTS--1.0% Mattel, Inc. 3,874,300 70,899,690 MOTORCYCLE MANUFACTURERS--2.0% Harley-Davidson, Inc. 2,762,500 137,020,000 MOVIES & ENTERTAINMENT--6.7% Viacom Inc., Class B 4,879,490 156,241,270 Time Warner Inc. (a) 8,997,700 150,351,567 The Walt Disney Company 5,950,000 149,821,000 --------------- 456,413,837 PUBLISHING--2.6% Gannett Co., Inc. 1,684,500 119,818,485 Knight-Ridder, Inc. 916,000 56,187,440 --------------- 176,005,925 RESTAURANTS--4.9% Yum! Brands, Inc. 3,374,000 175,717,920 McDonald's Corporation 5,700,000 158,175,000 ---------------
1 333,892,920 SPECIALIZED CONSUMER SERVICES--2.6% H&R Block, Inc. (c) 3,029,300 176,759,655 BREWERS--2.0% Anheuser-Busch Companies, Inc. 3,050,000 139,537,500 DISTILLERS & VINTNERS--1.9% Diageo plc (b) 2,221,000 131,705,300 HYPERMARKETS & SUPER CENTERS--2.1% Wal-Mart Stores, Inc. 2,900,000 139,780,000 PACKAGED FOODS & MEATS--4.2% General Mills, Inc. 2,506,000 117,255,740 Kraft Foods Inc., Class A 2,645,000 84,137,450 H.J. Heinz Company 2,310,000 81,820,200 --------------- 283,213,390 SOFT DRINKS--1.1% Coca-Cola Enterprises, Inc. 3,500,000 77,035,000 INTEGRATED OIL & GAS--2.2% ConocoPhillips 2,570,670 147,787,818 OIL & GAS EXPLORATION & PRODUCTION--2.0% Burlington Resources Inc. 2,442,200 134,907,128 ASSET MANAGEMENT & CUSTODY BANKS--1.1% The Bank of New York Company, Inc. 2,700,000 77,706,000 DIVERSIFIED BANKS--1.9% U.S. Bancorp 4,400,000 128,480,000 LIFE & HEALTH INSURANCE--1.8% AFLAC Incorporated 2,767,000 119,755,760 OTHER DIVERSIFIED FINANCIAL SERVICES--4.0% Citigroup Inc. 3,200,000 147,936,000 JP Morgan Chase & Co. 3,600,000 127,152,000 --------------- 275,088,000 THRIFTS & MORTGAGE FINANCE--6.1% Washington Mutual, Inc. 4,887,300 198,864,237 Fannie Mae 1,895,000 110,668,000 MGIC Investment Corporation 1,640,600 106,999,932 --------------- 416,532,169 HEALTH CARE EQUIPMENT--2.1% Baxter International Inc. 3,900,000 144,690,000 PHARMACEUTICALS--4.1% Abbott Laboratories 3,087,300 151,308,573 Bristol-Myers Squibb Company 5,150,000 128,647,000 ---------------
2 279,955,573 AEROSPACE & DEFENSE--3.4% Raytheon Company 3,000,000 117,360,000 Honeywell International, Inc. 3,050,000 111,721,500 --------------- 229,081,500 BUILDING PRODUCTS--2.1% Masco Corporation 4,433,600 140,811,136 ENVIRONMENTAL & FACILITIES SERVICES--1.4% Waste Management, Inc. 3,474,300 98,461,662 COMPUTER HARDWARE--2.7% Hewlett-Packard Company 3,875,000 91,101,250 Sun Microsystems, Inc. (a) 24,370,000 90,900,100 --------------- 182,001,350 DATA PROCESSING & OUTSOURCED SERVICES--3.2% First Data Corporation 3,615,000 145,106,100 Automatic Data Processing, Inc. 1,800,000 75,546,000 --------------- 220,652,100 OFFICE ELECTRONICS--1.2% Xerox Corporation (a) 5,972,400 82,359,396 SEMICONDUCTORS--0.8% Texas Instruments Incorporated 2,000,000 56,140,000 TOTAL COMMON STOCKS (COST: $5,026,547,452) 6,414,691,542
NAME PAR VALUE MARKET VALUE ---------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS--5.9% U.S. GOVERNMENT BILLS--2.8% United States Treasury Bills, 2.695%-3.025% 190,000,000 189,271,060 due 7/7/2005 - 9/15/2005 TOTAL U.S. GOVERNMENT BILLS (COST: $189,284,689) 189,271,060 REPURCHASE AGREEMENTS--3.1% IBT Repurchase Agreement, 2.80% dated 6/30/2005 due 7/1/2005, repurchase price $213,016,567 collateralized by U.S. Government Agency Securities with an aggregate market value plus accrued interest of $223,650,000 213,000,000 213,000,000 IBT Repurchase Agreement, 2.01% dated 6/30/2005 due 7/1/2005, repurchase price $2,547,175 collateralized by a U.S. Government Agency Security with a market value plus accrued interest of $2,674,385 2,547,033 2,547,033 ---------------
3 TOTAL REPURCHASE AGREEMENTS (COST: $215,547,033) 215,547,033 TOTAL SHORT TERM INVESTMENTS (COST: $404,831,722) 404,818,093 Total Investments (Cost $5,431,379,174)--100.1% $ 6,819,509,635 Other Liabilities In Excess Of Other Assets--(0.1%) (5,604,636) --------------- TOTAL NET ASSETS--100% $ 6,813,904,999 ===============
(a) Non-income producing security. (b) Represents an American Depository Receipt. (c) See footnote number two in the Notes to the Financial Statements regarding investments in affiliated issuers. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 4 THE OAKMARK SELECT FUND SCHEDULE OF INVESTMENTS--JUNE 30, 2005 (UNAUDITED)
NAME SHARES HELD MARKET VALUE ---------------------------------------------------------------------------------------------------------- COMMON STOCKS--91.9% APPAREL RETAIL--6.8% Limited Brands 9,580,981 205,224,613 The Gap, Inc. 10,060,000 198,685,000 --------------- 403,909,613 BROADCASTING & CABLE TV--3.9% Liberty Media Corporation, Class A (a) 23,000,000 234,370,000 LEISURE PRODUCTS--3.0% Mattel, Inc. 9,670,900 176,977,470 MOVIES & ENTERTAINMENT--8.5% Time Warner Inc. (a) 16,240,000 271,370,400 Viacom Inc., Class B 7,350,000 235,347,000 --------------- 506,717,400 PUBLISHING--2.7% Knight-Ridder, Inc. 2,606,500 159,882,710 RESTAURANTS--11.9% Yum! Brands, Inc. 9,207,000 479,500,560 McDonald's Corporation 8,300,000 230,325,000 --------------- 709,825,560 SPECIALIZED CONSUMER SERVICES--8.1% H&R Block, Inc. (b) 8,259,800 481,959,330 OIL & GAS EXPLORATION & PRODUCTION--4.7% Burlington Resources Inc. 5,103,600 281,922,864 OTHER DIVERSIFIED FINANCIAL SERVICES--3.1% JP Morgan Chase & Co. 5,250,000 185,430,000 SPECIALIZED FINANCE--4.3% Moody's Corporation 5,647,200 253,898,112 THRIFTS & MORTGAGE FINANCE--15.1% Washington Mutual, Inc. 22,217,400 904,026,006 HEALTH CARE SERVICES--3.4% IMS Health Incorporated 8,303,441 205,676,234 PHARMACEUTICALS--3.1% Bristol-Myers Squibb Company 7,490,200 187,105,196 DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--4.1% The Dun & Bradstreet Corporation (a) (b) 3,934,900 242,586,585
1 DATA PROCESSING & OUTSOURCED SERVICES--5.3% First Data Corporation 7,815,400 313,710,156 OFFICE ELECTRONICS--3.9% Xerox Corporation (a) 16,746,400 230,932,856 TOTAL COMMON STOCKS (COST: $3,621,387,391) 5,478,930,092
NAME PAR VALUE MARKET VALUE ---------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS--8.3% U.S. GOVERNMENT BILLS--5.0% United States Treasury Bills, 2.635%-2.935% 300,000,000 298,997,905 due 7/7/2005 - 9/15/2005 TOTAL U.S. GOVERNMENT BILLS (COST: $299,021,188) 298,997,905 REPURCHASE AGREEMENTS--3.3% IBT Repurchase Agreement, 2.80% dated 6/30/2005 due 7/1/2005, repurchase price $196,015,244 collateralized by U.S. Government Agency Securities with an aggregate market value plus accrued interest of $205,800,000 196,000,000 196,000,000 IBT Repurchase Agreement, 2.01% dated 6/30/2005 due 7/1/2005, repurchase price $2,159,725 collateralized by a U.S. Government Agency Security with a market value plus accrued interest of $2,267,585 2,159,604 2,159,604 --------------- TOTAL REPURCHASE AGREEMENTS (COST: $198,159,604) 198,159,604 TOTAL SHORT TERM INVESTMENTS (COST: $497,180,792) 497,157,509 Total Investments (Cost $4,118,568,183)--100.2% $ 5,976,087,601 Other Liabilities In Excess Of Other Assets--(0.2%) (10,213,033) --------------- TOTAL NET ASSETS--100% $ 5,965,874,568 ===============
(a) Non-income producing security. (b) See footnote number two in the Notes to the Financial Statements regarding investments in affiliated issuers. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 2 THE OAKMARK EQUITY AND INCOME FUND SCHEDULE OF INVESTMENTS--JUNE 30, 2005 (UNAUDITED)
NAME SHARES HELD MARKET VALUE ---------------------------------------------------------------------------------------------------------- EQUITY AND EQUIVALENTS--59.6% COMMON STOCKS--59.6% APPAREL RETAIL--1.9% The TJX Companies, Inc. 7,240,000 176,294,000 BROADCASTING & CABLE TV--5.0% EchoStar Communications Corporation, Class A 8,218,420 247,785,363 The DIRECTV Group, Inc. (a) 8,026,722 124,414,191 The E.W. Scripps Company, Class A 1,688,500 82,398,800 --------------- 454,598,354 HOMEBUILDING--0.1% Pulte Homes, Inc. 100,000 8,425,000 MOVIES & ENTERTAINMENT--2.3% Viacom Inc., Class B 6,500,000 208,130,000 PUBLISHING--0.1% Tribune Company 200,000 7,036,000 RESTAURANTS--0.9% McDonald's Corporation 3,000,000 83,250,000 DISTILLERS & VINTNERS--2.7% Diageo plc (b) 4,100,000 243,130,000 HYPERMARKETS & SUPER CENTERS--1.6% Costco Wholesale Corporation 3,200,000 143,424,000 PACKAGED FOODS & MEATS--4.0% Nestle SA (b) 3,900,000 249,522,000 Dean Foods Company (a) 2,500,000 88,100,000 TreeHouse Foods, Inc. (a) 475,000 13,542,250 Sanderson Farms, Inc. 250,000 11,360,000 --------------- 362,524,250 TOBACCO--1.5% UST Inc. 2,950,000 134,697,000 INTEGRATED OIL & GAS--1.3% ConocoPhillips 2,000,000 114,980,000 OIL & GAS EXPLORATION & PRODUCTION--10.3% Burlington Resources Inc. 7,150,000 394,966,000 XTO Energy, Inc. 10,265,888 348,937,533 St. Mary Land & Exploration Company (c) 2,900,000 84,042,000 EnCana Corp. (d) 2,000,000 79,180,000 Cabot Oil & Gas Corporation 792,500 27,499,749 ---------------
1 934,625,282 INVESTMENT BANKING & BROKERAGE--0.9% Morgan Stanley 1,500,000 78,705,000 OTHER DIVERSIFIED FINANCIAL SERVICES--1.7% Citigroup Inc. 3,400,000 157,182,000 PROPERTY & CASUALTY INSURANCE--4.7% SAFECO Corporation 4,000,000 217,360,000 MBIA Inc. 1,850,000 109,723,500 The Progressive Corporation 1,050,000 103,750,500 --------------- 430,834,000 REAL ESTATE INVESTMENT TRUSTS--1.0% Plum Creek Timber Company, Inc. 2,657,044 96,450,697 BIOTECHNOLOGY--2.1% MedImmune, Inc. (a) 6,000,000 160,320,000 Techne Corporation (a) 750,000 34,432,500 --------------- 194,752,500 HEALTH CARE EQUIPMENT--2.5% Hospira, Inc. (a) 3,750,000 146,250,000 Varian Inc. (a) 1,649,400 62,330,826 CONMED Corporation (a) 570,100 17,541,977 --------------- 226,122,803 HEALTH CARE SERVICES--2.6% Caremark Rx, Inc. (a) 5,250,000 233,730,000 AEROSPACE & DEFENSE--7.0% General Dynamics Corporation 2,060,300 225,685,262 Raytheon Company 3,599,700 140,820,264 Rockwell Collins, Inc. 2,249,000 107,232,320 Alliant Techsystems, Inc. (a) 1,325,000 93,545,000 Honeywell International, Inc. 1,889,500 69,212,385 --------------- 636,495,231 COMMERCIAL PRINTING--1.9% R.R. Donnelley & Sons Company 4,909,500 169,426,845 DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--0.5% ChoicePoint Inc. (a) 1,100,000 44,055,000 HUMAN RESOURCE & EMPLOYMENT SERVICES--0.3% Watson Wyatt & Company Holdings 1,015,600 26,029,828 APPLICATION SOFTWARE--0.8% The Reynolds and Reynolds Company, Class A 1,482,100 40,061,163 Mentor Graphics Corporation (a) (c) 3,640,000 37,310,000 --------------- 77,371,163 COMPUTER STORAGE & PERIPHERALS--0.5%
2 Imation Corp. 1,215,000 47,129,850 DATA PROCESSING & OUTSOURCED SERVICES--1.0% Ceridian Corporation (a) 4,800,000 93,504,000 INTERNET SOFTWARE & SERVICES--0.2% Jupiter Telecommunications Co., Ltd. (a) (d) 21,300 18,004,601 PAPER PRODUCTS--0.2% Schweitzer-Mauduit International, Inc. 700,000 21,791,001 TOTAL COMMON STOCKS (COST: $4,169,396,405) 5,422,698,405 TOTAL EQUITY AND EQUIVALENTS (COST: $4,169,396,405) 5,422,698,405
NAME PAR VALUE MARKET VALUE ---------------------------------------------------------------------------------------------------------- FIXED INCOME--36.0% CORPORATE BONDS--0.7% BROADCASTING & CABLE TV--0.2% Cablevision Systems Corporation, 8.00% due 4/15/2012 20,000,000 19,600,000 PUBLISHING--0.1% PRIMEDIA Inc., 8.00% due 5/15/2013 10,000,000 10,025,000 HEALTH CARE DISTRIBUTORS--0.2% Omnicare, Inc., 6.125% due 6/1/2013 15,000,000 14,775,000 PAPER PACKAGING--0.2% Sealed Air Corporation, 144A, 5.625% due 7/15/2013 (e) 20,000,000 20,551,600 MULTI-UTILITIES & UNREGULATED POWER--0.0% Midland Funding Corporation, 11.75% due 7/23/2005 172,075 172,589 TOTAL CORPORATE BONDS (COST: $65,508,612) 65,124,189 GOVERNMENT AND AGENCY SECURITIES--35.3% CANADIAN GOVERNMENT BONDS--3.9% Canada Government, 3.25% due 12/1/2006 CAD 250,000,000 205,385,055 Canada Government, 3.00% due 12/1/2005 CAD 125,000,000 102,200,751 Canada Government, 3.00% due 6/1/2007 CAD 50,000,000 40,892,952 Province of Alberta, 7.25% due 10/28/2005 CAD 10,000,000 8,273,771 --------------- 356,752,529 DANISH GOVERNMENT BONDS--0.2%
3 Kingdom of Denmark, 3.00% due 11/15/2006 DKK 100,000,000 16,442,932 NORWEGIAN GOVERNMENT BONDS--0.2% Norway Government, 6.75% due 1/15/2007 NOK 100,000,000 16,293,888 SWEDISH GOVERNMENT BONDS--0.1% Kingdom of Sweden, 3.50% due 4/20/2006 SEK 100,000,000 12,995,392 U.S. GOVERNMENT NOTES--27.1% United States Treasury Notes, 4.00% due 6/15/2009 500,000,000 505,390,500 United States Treasury Notes, 3.375% due 2/28/2007 500,000,000 497,812,500 United States Treasury Notes, 3.625% due 1/15/2010 500,000,000 497,636,500 United States Treasury Notes, 3.375% due 1/15/2007, Inflation Indexed 261,561,870 269,868,552 United States Treasury Notes, 3.375% due 11/15/2008 250,000,000 247,470,750 United States Treasury Notes, 3.25% due 1/15/2009 250,000,000 246,435,500 United States Treasury Notes, 4.00% due 2/15/2015 200,000,000 200,711,000 --------------- 2,465,325,302 U.S. GOVERNMENT AGENCIES--3.8% Federal Home Loan Bank, 5.00% due 12/20/2011 34,555,000 34,560,356 Federal Home Loan Mortgage Corporation, 2.75% due 9/8/2009 32,490,000 32,446,203 Fannie Mae, 3.10% due 9/6/2007 25,000,000 24,986,550 Fannie Mae, 3.02% due 9/12/2007 25,000,000 24,981,225 Fannie Mae, 3.625% due 12/28/2009 24,435,000 24,372,202 Federal Home Loan Mortgage Corporation, 3.625% due 3/24/2008 20,000,000 20,023,060 Federal Home Loan Bank, 2.50% due 4/20/2009 20,000,000 19,847,640 Fannie Mae, 2.60% due 4/28/2009 18,800,000 18,670,618 Fannie Mae, 3.50% due 2/8/2010 15,315,000 15,312,733 Fannie Mae, 4.25% due 2/19/2010 12,888,000 12,847,764 Fannie Mae, 3.125% due 11/30/2009 12,697,000 12,665,702 Federal Home Loan Mortgage Corporation, 3.00% due 8/17/2009 10,000,000 9,994,050 Federal Home Loan Mortgage Corporation, 2.375% due 9/27/2007 10,000,000 9,974,780 Fannie Mae, 3.00% due 10/6/2009 10,000,000 9,917,580 Federal Home Loan Mortgage Corporation, 3.00% due 11/17/2006 10,000,000 9,893,950 Fannie Mae, 3.375% due 3/3/2008 9,300,000 9,291,649 Fannie Mae, 3.50% due 10/14/2010 7,550,000 7,523,952 Federal Home Loan Bank, 3.00% due 8/17/2007 7,500,000 7,496,138 Federal Home Loan Bank, 3.00% due 12/30/2009 5,000,000 5,051,955 Fannie Mae, 4.00% due 4/13/2009 5,000,000 5,019,975 Federal Home Loan Bank, 4.52% due 8/26/2009 4,825,000 4,828,899 Fannie Mae, 5.125% due 5/4/2012 4,013,000 4,030,717
4 Federal Home Loan Bank, 2.25% due 2/22/2007 4,000,000 3,992,420 Federal Home Loan Mortgage Corporation, 2.00% due 7/11/2008 3,500,000 3,498,597 Federal Home Loan Bank, 3.00% due 2/24/2010 3,000,000 2,990,202 Fannie Mae, 3.75% due 6/23/2009 2,820,000 2,818,869 Federal Home Loan Mortgage Corporation, 3.125% due 9/15/2010 2,500,000 2,492,375 Federal Home Loan Bank, 2.40% due 3/9/2009 2,000,000 1,985,446 Federal Home Loan Mortgage Corporation, 3.00% due 9/29/2009 1,520,000 1,518,171 Federal Home Loan Mortgage Corporation, 3.00% due 1/13/2009 1,000,000 994,574 --------------- 344,028,352 TOTAL GOVERNMENT AND AGENCY SECURITIES (COST: $3,198,076,051) 3,211,838,395 TOTAL FIXED INCOME (COST: $3,263,584,663) 3,276,962,584
NAME PAR VALUE MARKET VALUE ---------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS--3.4% U.S. GOVERNMENT BILLS--1.7% United States Treasury Bills, 2.635%-2.78% 150,000,000 149,855,633 due 7/7/2005 - 7/21/2005 TOTAL U.S. GOVERNMENT BILLS (COST: $149,855,458) 149,855,633 REPURCHASE AGREEMENTS--1.7% IBT Repurchase Agreement, 2.80% dated 6/30/2005 due 7/1/2005, repurchase price $155,512,094 collateralized by U.S. Government Agency Securities with an aggregate market value plus accrued interest of $163,275,000 155,500,000 155,500,000 IBT Repurchase Agreement, 2.01% dated 6/30/2005 due 7/1/2005, repurchase price $2,218,643 collateralized by a U.S. Government Agency Security with a market value plus accrued interest of $2,329,446 2,218,520 2,218,520 --------------- TOTAL REPURCHASE AGREEMENTS (COST: $157,718,520) 157,718,520 TOTAL SHORT TERM INVESTMENTS (COST: $307,573,978) 307,574,153 Total Investments (Cost $7,740,555,046)--99.0% $ 9,007,235,142 Other Assets In Excess Of Other Liabilities--1.0% 87,643,751 --------------- TOTAL NET ASSETS--100% $ 9,094,878,893 ===============
(a) Non-income producing security. 5 (b) Represents an American Depository Receipt. (c) See footnote number two in the Notes to the Financial Statements regarding investments in affiliated issuers. (d) Represents a foreign domiciled corporation. (e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Key to abbreviations: CAD: Canadian Dollar DKK: Danish Krone NOK: Norwegian Krone SEK: Swedish Krona SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 6 THE OAKMARK GLOBAL FUND GLOBAL DIVERSIFICATION--JUNE 30, 2005 (UNAUDITED)
% OF FUND EQUITY MARKET VALUE ------------------------------------------------------------------------------------------------- EUROPE 44.3% Switzerland 12.0% Great Britain 11.4% * Netherlands 6.2% * France 5.4% * Ireland 4.0% * Germany 3.3% * Italy 2.0% UNITED STATES 35.2% PACIFIC RIM 18.2% Japan 10.9% Korea 3.9% Australia 3.4% LATIN AMERICA 2.3% Mexico 2.3%
* Euro currency countries comprise 20.9% of the Fund. THE OAKMARK GLOBAL FUND SCHEDULE OF INVESTMENTS--JUNE 30, 2005 (UNAUDITED)
NAME DESCRIPTION SHARES HELD MARKET VALUE --------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--95.4% APPAREL RETAIL--2.1% The TJX Companies, Inc. (United Discount Apparel & Home States) Fashion Retailer 1,501,000 36,549,350 APPAREL, ACCESSORIES & LUXURY GOODS--0.9% Jewelry Manufacturer & Bulgari S.p.A. (Italy) Retailer 1,390,000 15,598,192 BROADCASTING & CABLE TV--2.8% Liberty Media Corporation, Class A Broadcast Services & (United States) (a) Programming 2,356,000 24,007,640 Television Production & Grupo Televisa S.A. (Mexico) (b) Broadcasting 378,000 23,470,020 -------------- 47,477,660 HOUSEHOLD APPLIANCES--2.9% Tool & Equipment Snap-on Incorporated (United States) Manufacturer 1,431,000 49,083,300 MOTORCYCLE MANUFACTURERS--2.1% Harley-Davidson, Inc. (United States) Motorcycle Manufacturer 697,000 34,571,200 Ducati Motor Holding S.p.A. (Italy) (a) Motorcycle Manufacturer 1,790,000 2,116,347 -------------- 36,687,547 MOVIES & ENTERTAINMENT--6.5% Worldwide Entertainment & Viacom Inc., Class B (United States) Publishing Company 1,560,000 49,951,200 Music, Games, Television, Vivendi Universal SA (France) Film, & Telecommunications 1,430,500 45,112,976 Filmed Entertainment & Time Warner Inc. (United States) (a) Television Networks 991,000 16,559,610 -------------- 111,623,786 PUBLISHING--2.1% Publishing & Broadcast Tribune Company (United States) Services 1,003,000 35,285,540 DISTILLERS & VINTNERS--4.8% Beverages, Wines, & Spirits Diageo plc (Great Britain) Manufacturer 5,517,500 81,350,268 HOUSEHOLD PRODUCTS--3.1% Consumer Chemical Products Henkel KGaA (Germany) Manufacturer 632,000 53,208,166 PACKAGED FOODS & MEATS--5.4%
1 Food & Beverage Nestle SA (Switzerland) Manufacturer 264,000 67,562,907 Beverage & Confectionary Cadbury Schweppes plc (Great Britain) Manufacturer 2,423,000 23,136,488 -------------- 90,699,395 SOFT DRINKS--0.7% Lotte Chilsung Beverage Co., Ltd. Soft Drinks, Juices & Sports (Korea) (c) Drinks Manufacturer 13,430 11,631,977 OIL & GAS EXPLORATION & PRODUCTION--4.1% Burlington Resources Inc. (United Oil & Natural Gas States) Exploration & Production 1,260,000 69,602,400 ASSET MANAGEMENT & CUSTODY BANKS--2.3% Julius Baer Holding AG-B (Switzerland) Asset Management 646,500 39,547,146 DIVERSIFIED BANKS--6.9% Bank of Ireland (Ireland) Commercial Bank 4,029,000 65,431,818 Australia and New Zealand Banking Group Limited (Australia) Commercial Bank 2,260,000 37,424,159 Banco Popolare di Verona e Novara Scrl (Italy) Commercial Bank 863,600 14,751,382 -------------- 117,607,359 DIVERSIFIED CAPITAL MARKETS--0.4% Investment Services & Credit Suisse Group (Switzerland) Insurance 190,700 7,521,465 INVESTMENT BANKING & BROKERAGE--0.7% Daiwa Securities Group Inc. (Japan) Stock Broker 2,062,000 12,760,776 SPECIALIZED FINANCE--3.6% Euronext NV (Netherlands) (c) Stock Exchange 1,814,000 61,443,987 HEALTH CARE SERVICES--2.6% Laboratory Corporation of America Medical Laboratory & Testing Holdings (United States) (a) Services 892,000 44,510,800 HEALTH CARE SUPPLIES--1.0% Protective Rubber & Plastics Ansell Limited (Australia) Products 2,265,966 17,320,940 PHARMACEUTICALS--10.9% Takeda Pharmaceutical Company Pharmaceuticals & Food Limited (Japan) Supplements 1,281,000 63,558,863 GlaxoSmithKline plc (Great Britain) Pharmaceuticals 2,614,200 63,271,914 Novartis AG (Switzerland) Pharmaceuticals 899,600 42,851,465 Santen Pharmaceutical Co., Ltd. (Japan) Pharmaceuticals 781,000 17,719,576 -------------- 187,401,818 AEROSPACE & DEFENSE--1.0% Alliant Techsystems, Inc. (United Propulsion Systems & States) (a) Munitions 239,087 16,879,542
2 AIRPORT SERVICES--0.9% Grupo Aeroportuario del Sureste S.A de C.V. (Mexico) (b) (c) Airport Operator 463,000 14,746,550 DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--4.3% Equifax Inc. (United States) Credit Reporting & Collection 1,367,000 48,815,570 Software Engineering Meitec Corporation (Japan) (c) Services 760,000 23,379,341 -------------- 72,194,911 ENVIRONMENTAL & FACILITIES SERVICES--1.9% Waste Management, Inc. (United States) Waste Management Services 1,175,000 33,299,500 HUMAN RESOURCE & EMPLOYMENT SERVICES--1.0% Michael Page International plc (Great Recruitment Consultancy Britain) (c) Services 4,815,400 17,447,681 OFFICE SERVICES & SUPPLIES--0.4% United Stationers Inc. (United States) (a) Business Products Distributor 150,000 7,365,000 DATA PROCESSING & OUTSOURCED SERVICES--6.3% Data Processing & First Data Corporation (United States) Management 1,004,750 40,330,665 Electronic Debit Payment eFunds Corporation (United States) (a) Services 2,237,100 40,245,429 Ceridian Corporation (United States) (a) Data Management Services 1,348,000 26,259,040 -------------- 106,835,134 OFFICE ELECTRONICS--2.6% Mailroom Equipment Neopost SA (France) Supplier 494,750 43,557,005 SEMICONDUCTORS--1.6% Integrated Circuits & Semi- Conductor Devices Rohm Company Limited (Japan) Manufacturer 277,000 26,737,934 DIVERSIFIED CHEMICALS--2.3% Akzo Nobel N.V. (Netherlands) Chemical Producer 992,300 39,123,102 SPECIALTY CHEMICALS--2.2% Lonza Group AG, Registered Shares (Switzerland) (c) Industrial Organic Chemicals 408,400 22,608,341 Fragrance & Flavor Givaudan (Switzerland) Compound Manufacturer 25,300 14,716,303 -------------- 37,324,644 WIRELESS TELECOMMUNICATION SERVICES--5.0% SK Telecom Co., Ltd. (Korea) Mobile Telecommunications 300,000 52,779,120 NTT DoCoMo Inc. (Japan) Mobile Telecommunications 22,140 32,755,616 --------------
3 85,534,736 TOTAL COMMON STOCKS (COST: $1,285,016,704) 1,627,957,611
NAME PAR VALUE MARKET VALUE --------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS--4.1% REPURCHASE AGREEMENTS--4.1% IBT Repurchase Agreement, 2.80% dated 6/30/2005 due 7/1/2005, repurchase price $68,505,328 collateralized by U.S. Government Agency Securities with an aggregate market value plus accrued interest of $71,925,000 68,500,000 68,500,000 IBT Repurchase Agreement, 2.01% dated 6/30/2005 due 7/1/2005, repurchase price $1,588,901 collateralized by a U.S. Government Agency Security with a market value plus accrued interest of $1,668,253 1,588,813 1,588,813 --------------- TOTAL REPURCHASE AGREEMENTS (COST: $70,088,813) 70,088,813 TOTAL SHORT TERM INVESTMENTS (COST: $70,088,813) 70,088,813 Total Investments (Cost $1,355,105,517)--99.5% $ 1,698,046,424 Foreign Currencies (Cost $474,226)--0.0% $ 472,878 Other Assets In Excess Of Other Liabilities--0.5% 7,629,232 --------------- TOTAL NET ASSETS--100% $ 1,706,148,534 ===============
(a) Non-income producing security. (b) Represents an American Depository Receipt. (c) See footnote number two in the Notes to the Financial Statements regarding investments in affiliated issuers. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 4 THE OAKMARK INTERNATIONAL FUND INTERNATIONAL DIVERSIFICATION--JUNE 30, 2005 (UNAUDITED)
% OF FUND EQUITY MARKET VALUE -------------------------------------------------------------------------------------------------- EUROPE 74.7% Great Britain 25.5% Switzerland 15.7% * France 9.9% * Germany 8.7% * Netherlands 8.3% * Ireland 3.4% * Italy 3.2% PACIFIC RIM 23.4% Japan 12.0% Korea 6.8% Australia 2.4% Singapore 1.4% Hong Kong 0.8% LATIN AMERICA 1.4% Mexico 1.4% OTHER 0.5% Israel 0.5%
* Euro currency countries comprise 33.5% of the Fund. SCHEDULE OF INVESTMENTS--JUNE 30, 2005 (UNAUDITED)
NAME DESCRIPTION SHARES HELD MARKET VALUE --------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--93.6% ADVERTISING--3.7% Advertising & Media Publicis Groupe (France) (b) Services 3,965,400 117,232,945 Aegis Group plc (Great Britain) Media Services 45,543,900 81,183,937 -------------- 198,416,882 APPAREL RETAIL--0.8% Giordano International Limited (Hong Pacific Rim Clothing Retailer Kong) & Manufacturer 61,424,300 42,290,715 APPAREL, ACCESSORIES & LUXURY GOODS--2.1% Swatch Group AG, Bearer Shares (Switzerland) Watch Manufacturer 823,000 115,585,378 Swatch Group AG, Registered Shares (Switzerland) Watch Manufacturer 24,700 706,320 -------------- 116,291,698 AUTOMOBILE MANUFACTURERS--5.1% Bayerische Motoren Werke (BMW) AG Luxury Automobile (Germany) Manufacturer 4,054,500 185,124,251 Automobile & Motorcycle Honda Motor Co., Ltd. (Japan) Manufacturer 1,890,300 93,278,674 -------------- 278,402,925 BROADCASTING & CABLE TV--2.3% Television Production & Grupo Televisa S.A. (Mexico) (c) Broadcasting 1,171,200 72,719,808 British Sky Broadcasting Group plc Television Production & (Great Britain) Broadcasting 5,291,000 50,000,810 -------------- 122,720,618 CONSUMER ELECTRONICS--0.7% Koninklijke (Royal) Philips Electronics N.V. (Netherlands) Electronics Manufacturer 1,412,500 35,725,141 MOVIES & ENTERTAINMENT--1.6% Music, Games, Television, Vivendi Universal SA (France) Film, & Telecommunications 2,789,300 87,964,785 SPECIALTY STORES--2.1% Signet Group plc (Great Britain) Jewelry Retailer 59,260,000 115,453,665 TEXTILES--0.5% Wool, Textile Production & Chargeurs SA (France) (d) Trading 790,182 26,774,685 BREWERS--1.6% Heineken Holding NV (Netherlands) Brewer 2,594,600 72,530,655
1 Heineken NV (Netherlands) Brewer 497,500 15,376,347 -------------- 87,907,002 DISTILLERS & VINTNERS--3.9% Beverages, Wines, & Spirits Diageo plc (Great Britain) Manufacturer 12,023,000 177,267,653 Manufactures Wines, Spirits, Pernod-Ricard SA (France) & Fruit Juices 199,000 31,788,220 -------------- 209,055,873 HOUSEHOLD PRODUCTS--2.9% Consumer Chemical Products Henkel KGaA (Germany) Manufacturer 1,228,200 103,402,324 Toiletry Product Uni-Charm Corporation (Japan) Manufacturer 956,000 38,464,231 Household & Chemical KAO Corp. (Japan) Products Manufacturer 575,000 13,564,502 -------------- 155,431,057 PACKAGED FOODS & MEATS--4.9% Food & Beverage Nestle SA (Switzerland) Manufacturer 575,100 147,179,651 Beverage & Confectionary Cadbury Schweppes plc (Great Britain) Manufacturer 12,390,400 118,312,151 -------------- 265,491,802 PERSONAL PRODUCTS--1.4% Health & Beauty Aid L'Oreal SA (France) Manufacturer 1,077,000 77,352,728 SOFT DRINKS--1.3% Lotte Chilsung Beverage Co., Ltd. Soft Drinks, Juices & Sports (Korea) (d) Drinks Manufacturer 83,400 72,234,316 TOBACCO--0.1% Tobacco Products KT&G Corporation (Korea) Manufacturer 75,000 2,936,201 INTEGRATED OIL & GAS--1.8% Oil & Natural Gas BP p.l.c. (Great Britain) Exploration & Production 6,294,100 65,512,864 Oil & Natural Gas Total SA (France) Exploration & Production 126,000 29,626,650 -------------- 95,139,514 DIVERSIFIED BANKS--15.0% Bank of Ireland (Ireland) Commercial Bank 10,462,900 169,919,725 Australia and New Zealand Banking Group Limited (Australia) Commercial Bank 7,348,800 121,691,443 Lloyds TSB Group plc (Great Britain) Commercial Bank 12,347,600 104,631,031 Kookmin Bank (Korea) Commercial Banking 2,159,700 98,225,118 BNP Paribas SA (France) (b) Commercial Banking 1,156,000 79,319,524 UniCredito Italiano S.p.A. (Italy) Banking Services 13,556,700 71,659,838 United Overseas Bank Limited, Foreign Shares (Singapore) Commercial Banking 8,395,368 70,714,610
2 Banco Popolare di Verona e Novara Scrl (Italy) Commercial Bank 2,938,400 50,191,596 Sanpaolo IMI S.p.A. (Italy) Banking Services 2,947,000 40,392,050 -------------- 806,744,935 DIVERSIFIED CAPITAL MARKETS--1.9% Investment Services & Credit Suisse Group (Switzerland) Insurance 2,609,000 102,902,469 INVESTMENT BANKING & BROKERAGE--1.3% Daiwa Securities Group Inc. (Japan) Stock Broker 11,198,000 69,299,305 REAL ESTATE MANAGEMENT & DEVELOPMENT--0.0% United Overseas Land Limited (Singapore) Real Estate Investor 839,537 1,135,418 REINSURANCE--0.3% Hannover Rueckversicherung AG (Germany) Reinsurance 390,800 14,778,957 SPECIALIZED FINANCE--5.7% Euronext NV (Netherlands) (d) Stock Exchange 5,012,500 169,783,894 Deutsche Boerse AG (Germany) Electronic Trading Systems 1,719,000 134,675,246 -------------- 304,459,140 PHARMACEUTICALS--9.9% GlaxoSmithKline plc (Great Britain) Pharmaceuticals 8,029,300 194,334,473 Novartis AG (Switzerland) Pharmaceuticals 3,028,000 144,235,478 Takeda Pharmaceutical Company Pharmaceuticals & Food Limited (Japan) Supplements 2,876,800 142,737,032 Sanofi-Aventis (France) Pharmaceuticals 588,508 48,357,223 -------------- 529,664,206 DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--1.4% Software Engineering Meitec Corporation (Japan) (d) Services 2,483,800 76,407,379 ENVIRONMENTAL & FACILITIES SERVICES--0.2% Rentokil Initial plc (Great Britain) Global Business Services 3,400,000 9,730,532 HUMAN RESOURCE & EMPLOYMENT SERVICES--1.8% Michael Page International plc (Great Recruitment Consultancy Britain) (d) Services 26,290,000 95,256,787 INDUSTRIAL CONGLOMERATES--0.0% Haw Par Corporation Limited Healthcare & Leisure (Singapore) Products 58,338 178,213 INDUSTRIAL MACHINERY--1.3% Enodis plc (Great Britain) (a) (d) Food Processing Equipment 33,585,320 69,494,156 MARINE PORTS & SERVICES--2.0% Associated British Ports Holdings plc (Great Britain) Port Operator 12,131,399 107,145,669
3 ELECTRONIC EQUIPMENT MANUFACTURERS--0.5% Orbotech, Ltd. (Israel) (a) (d) Optical Inspection Systems 1,237,700 26,598,173 SEMICONDUCTORS--0.9% Integrated Circuits & Semi- Conductor Devices Rohm Company Limited (Japan) Manufacturer 527,500 50,917,907 DIVERSIFIED CHEMICALS--2.3% Akzo Nobel N.V. (Netherlands) Chemical Producer 3,107,200 122,506,602 FERTILIZERS & AGRICULTURAL CHEMICALS--1.7% Syngenta AG (Switzerland) (a) Crop Protection Products 882,300 90,801,209 SPECIALTY CHEMICALS--3.4% Lonza Group AG, Registered Shares (Switzerland) (d) Industrial Organic Chemicals 1,797,700 99,517,665 Fragrance & Flavor Givaudan (Switzerland) Compound Manufacturer 151,100 87,890,649 -------------- 187,408,314 WIRELESS TELECOMMUNICATION SERVICES--7.2% SK Telecom Co., Ltd. (Korea) Mobile Telecommunications 970,200 170,687,675 NTT DoCoMo Inc. (Japan) Mobile Telecommunications 79,180 117,144,971 Vodafone Group Plc (Great Britain) Mobile Telecommunications 32,142,800 78,314,004 Vodafone Group Plc (Great Britain) (c) Mobile Telecommunications 606,000 14,737,919 -------------- 380,884,569 TOTAL COMMON STOCKS (COST: $3,933,215,202) 5,035,903,547
NAME PAR VALUE MARKET VALUE --------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS--4.8% U.S. GOVERNMENT BILLS--1.0% United States Treasury Bills, 2.705%- 2.855% due 7/14/2005 - 8/18/2005 50,000,000 49,858,900 TOTAL U.S. GOVERNMENT BILLS (COST: $49,861,399) 49,858,900 REPURCHASE AGREEMENTS--3.8%
4 IBT Repurchase Agreement, 2.80% dated 6/30/2005 due 7/1/2005, repurchase price $204,515,906 collateralized by U.S. Government Agency Securities with an aggregate market value plus accrued interest of $214,725,000 204,500,000 204,500,000 IBT Repurchase Agreement, 2.01% dated 6/30/2005 due 7/1/2005, repurchase price $2,610,762 collateralized by a U.S. Government Agency Security with a market value plus accrued interest of $2,741,147 2,610,616 2,610,616 --------------- TOTAL REPURCHASE AGREEMENTS (COST: $207,110,616) 207,110,616 TOTAL SHORT TERM INVESTMENTS (COST: $256,972,015) 256,969,516 Total Investments (Cost $4,190,187,217)--98.4% $ 5,292,873,063 Foreign Currencies (Cost $1,460,064)--0.0% $ 1,455,915 Other Assets In Excess Of Other Liabilities--1.6% 86,008,057 --------------- TOTAL NET ASSETS--100% $ 5,380,337,035 ===============
(a) Non-income producing security. (b) All or a portion of security out on loan. (c) Represents an American Depository Receipt. (d) See footnote number two in the Notes to the Financial Statements regarding investments in affiliated issuers. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 5 THE OAKMARK INTERNATIONAL SMALL CAP FUND INTERNATIONAL DIVERSIFICATION--JUNE 30, 2005 (UNAUDITED)
% OF FUND EQUITY MARKET VALUE ------------------------------------------------------------------------------------------ EUROPE 67.9% Great Britain 19.3% Switzerland 16.3% * France 8.1% * Germany 7.7% * Italy 5.6% * Spain 3.1% Sweden 2.4% Turkey 1.9% * Finland 1.8% Denmark 1.4% * Greece 0.3% PACIFIC RIM 27.3% Japan 12.0% Korea 6.3% Australia 4.2% New Zealand 1.8% Hong Kong 1.7% Malaysia 0.5% Thailand 0.4% Philippines 0.4% OTHER 4.2% Bermuda 2.8% Israel 1.4% LATIN AMERICA 0.6% Mexico 0.6%
* Euro currency countries comprise 26.6% of the Fund. SCHEDULE OF INVESTMENTS--JUNE 30, 2005 (UNAUDITED)
NAME DESCRIPTION SHARES HELD MARKET VALUE --------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--92.8% ADVERTISING--2.2% Asatsu-DK, Inc. (Japan) Advertising Services Provider 459,700 12,814,371 Advertising & Marketing G2R Inc. (Korea) Services 405,110 7,087,956 -------------- 19,902,327 APPAREL RETAIL--5.8% Matalan plc (Great Britain) Clothing Retailer 8,445,000 26,930,007 Sportswear & Sports JJB Sports plc (Great Britain) Equipment Retailer 7,870,000 25,307,893 -------------- 52,237,900 APPAREL, ACCESSORIES & LUXURY GOODS--1.0% Jewelry Manufacturer & Bulgari S.p.A. (Italy) Retailer 784,900 8,807,929 BROADCASTING & CABLE TV--1.3% Television Entertainment M6 Metropole Television (France) Channel Owner & Operator 297,700 7,565,495 Film Producer & Sports Media Prima Berhad (Malaysia) (a) Promoter 9,891,000 4,294,776 -------------- 11,860,271 HOME IMPROVEMENT RETAIL--4.6% Carpetright plc (Great Britain) Carpet Retailer 2,358,000 41,145,237 MOTORCYCLE MANUFACTURERS--0.4% Ducati Motor Holding S.p.A. (Italy) (a) Motorcycle Manufacturer 3,015,650 3,565,453 PHOTOGRAPHIC PRODUCTS--1.6% Vitec Group plc (Great Britain) (b) Photo Equipment & Supplies 2,383,907 14,264,370 PUBLISHING--2.1% TV Broadcasting & Tamedia AG (Switzerland) Publishing 143,661 13,114,608 Matichon Public Company Limited, Foreign Shares (Thailand) (b) Newspaper Publisher 20,395,000 3,504,041 Educational Information Daekyo Co., Ltd. (Korea) Service Provider 27,660 1,898,366 -------------- 18,517,015 BREWERS--1.2% Kook Soon Dang Brewery Co., Ltd. (Korea) Wine & Spirits Manufacturer 771,076 10,397,787 DISTILLERS & VINTNERS--1.6%
1 Baron de Ley, S.A. (Spain) (a) Wines & Spirits Manufacturer 305,637 14,062,329 PACKAGED FOODS & MEATS--1.9% Candy & Snacks Lotte Confectionery Co., Ltd. (Korea) Manufacturer 13,914 9,683,983 Robert Wiseman Dairies plc (Great Britain) Milk Processor & Distributor 959,000 4,458,336 Alaska Milk Corporation (Philippines) (b) Milk Producer 56,360,000 3,070,978 -------------- 17,213,297 ASSET MANAGEMENT & CUSTODY BANKS--4.0% Julius Baer Holding AG-B (Switzerland) Asset Management 419,000 25,630,710 MLP AG (Germany) Asset Management 569,600 10,649,707 -------------- 36,280,417 INSURANCE BROKERS--2.6% Benfield Group Ltd. Common Stock (Bermuda) Reinsurance Service Provider 5,037,000 23,867,913 MULTI-SECTOR HOLDINGS--1.9% Pargesa Holding AG (Switzerland) Diversified Operations 4,744 17,363,636 OTHER DIVERSIFIED FINANCIAL SERVICES--2.1% Ichiyoshi Securities Co., Ltd. (Japan) Stock Broker 2,079,700 19,324,231 REGIONAL BANKS--1.7% Pusan Bank (Korea) Commercial Banking 1,033,500 9,191,107 Daegu Bank (Korea) Commercial Banking 739,400 6,332,609 -------------- 15,523,716 SPECIALIZED FINANCE--0.2% Athens Stock Exchange S.A. (Greece) Exchange Services 293,000 2,169,993 HEALTH CARE SUPPLIES--2.8% Protective Rubber & Plastics Ansell Limited (Australia) Products 1,733,684 13,252,201 Healthcare Products & Coloplast A/S, Class B (Denmark) Services Provider 203,000 11,786,703 -------------- 25,038,904 PHARMACEUTICALS--2.2% Santen Pharmaceutical Co., Ltd. (Japan) Pharmaceuticals 896,000 20,328,732 AIR FREIGHT & LOGISTICS--1.7% Mainfreight Limited (New Zealand) (b) Logistics Services 7,475,285 15,081,612 AIRPORT SERVICES--0.5% Grupo Aeroportuario del Sureste S.A de C.V. (Mexico) (b) (c) Airport Operator 149,700 4,767,945 CONSTRUCTION & ENGINEERING--0.9%
2 Tae Young Corp. (Korea) Heavy Construction 256,370 8,562,188 CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS--0.2% Railroad Equipment Vossloh AG (Germany) Manufacturer 29,000 1,358,151 DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES--2.0% Prosegur, Compania de Seguridad SA Security & Transportation (Spain) Services 552,800 11,680,232 Intrum Justitia AB (Sweden) (a) Diversified Financial Services 961,243 6,675,299 -------------- 18,355,531 ELECTRICAL COMPONENTS & EQUIPMENT--2.4% Pfeiffer Vacuum Technology AG (Germany) Vacuum Pump Manufacturer 355,832 16,569,876 Electrical Systems Carbone Lorraine SA (France) Manufacturer 106,245 5,046,466 -------------- 21,616,342 HUMAN RESOURCE & EMPLOYMENT SERVICES--0.8% DIS Deutscher Industrie Service AG Recruitment Consultancy (Germany) Services 173,800 7,424,440 INDUSTRIAL CONGLOMERATES--2.7% Dogan Sirketler Grubu Holdings A.S (Turkey) (a) Diversified Holding Company 6,258,511 15,805,033 Automotive Pump Rheinmetall AG (Germany) Manufacturer 185,600 9,348,012 -------------- 25,153,045 INDUSTRIAL MACHINERY--14.4% Interpump Group S.p.A. (Italy) (b) Pump & Piston Manufacturer 5,326,600 34,350,654 Textile Equipment Saurer AG (Switzerland) (a) Manufacturer 502,653 31,375,368 Elevator & Escalator Schindler Holding AG (Switzerland) Manufacturer 64,200 23,480,474 Electronic Instrument Halma plc (Great Britain) Producer 6,557,000 17,209,158 Filtration & Separation Alfa Laval AB (Sweden) Equipment 807,500 11,680,428 Industrial Fastener LISI (France) Manufacturer 135,813 9,828,375 Cooling & Moisture Control Munters AB (Sweden) Systems 77,400 1,709,101 -------------- 129,633,558 OFFICE SERVICES & SUPPLIES--0.2% Domino Printing Sciences plc (Great Britain) Printing Equipment 300,000 1,410,806 COMPUTER HARDWARE--2.1% Banking Machine Wincor Nixdorf AG (Germany) Manufacturer 234,800 19,182,509
3 COMPUTER STORAGE & PERIPHERALS--1.0% Manufacturing Process Lectra (France) Systems 1,813,100 8,776,492 DATA PROCESSING & OUTSOURCED SERVICES--2.4% Baycorp Advantage Limited (Australia) Credit Reference Services 9,412,800 21,714,299 ELECTRONIC EQUIPMENT MANUFACTURERS--5.0% Digital Camera Motors Mabuchi Motor Co., Ltd. (Japan) Manufacturer 315,200 18,169,851 Atmospheric Observation Vaisala Oyj, Class A (Finland) Equipment 627,000 15,440,848 Orbotech, Ltd. (Israel) (a) (b) Optical Inspection Systems 536,500 11,529,385 -------------- 45,140,084 HOME ENTERTAINMENT SOFTWARE--1.5% Square Enix Co., Ltd. (Japan) Entertainment Software 447,900 13,657,212 IT CONSULTING & OTHER SERVICES--3.6% Business & Technology Morse plc (Great Britain) (b) Solutions 12,174,000 15,266,805 Systems Consulting & Alten (France) (a) Engineering 443,281 11,254,438 Sopra Group (France) Computer Engineering 111,930 6,095,344 -------------- 32,616,587 OFFICE ELECTRONICS--2.2% Mailroom Equipment Neopost SA (France) Supplier 220,700 19,430,078 INDUSTRIAL GASES--1.8% Taiyo Ink Mfg. Co., Ltd. (Japan) Manufacturer of Resist Inks 426,100 16,567,352 SPECIALTY CHEMICALS--4.6% Gurit-Heberlein AG (Switzerland) (b) Chemical Producer 36,075 25,557,758 Croda International plc (Great Britain) Chemical Producer 2,359,600 16,126,857 -------------- 41,684,615 ALTERNATIVE CARRIERS--1.6% Asia Satellite Telecommunications Holdings Limited (Hong Kong) Satellite Operator 8,291,500 14,511,859 TOTAL COMMON STOCKS (COST: $676,212,809) 838,516,162
NAME DESCRIPTION PAR VALUE MARKET VALUE --------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS--5.5% U.S. GOVERNMENT BILLS--1.1%
4 United States Treasury Bills, 2.90% due 7/28/2005 10,000,000 9,978,250 TOTAL U.S. GOVERNMENT BILLS (COST: $9,978,250) 9,978,250 REPURCHASE AGREEMENTS--4.4% IBT Repurchase Agreement, 2.80% dated 6/30/2005 due 7/1/2005, repurchase price $38,502,994 collateralized by U.S. Government Agency Securities with an aggregate market value plus accrued interest of $40,425,000 38,500,000 38,500,000 IBT Repurchase Agreement, 2.01% dated 6/30/2005 due 7/1/2005, repurchase price $1,768,390 collateralized by a U.S. Government Agency Security with a market value plus accrued interest of $1,856,705 1,768,291 1,768,291 -------------- TOTAL REPURCHASE AGREEMENTS (COST: $40,268,291) 40,268,291 TOTAL SHORT TERM INVESTMENTS (COST: $50,246,541) 50,246,541 Total Investments (Cost $726,459,350)--98.3% $ 888,762,703 Foreign Currencies (Cost $291,456)--0.0% $ 290,274 Other Assets In Excess Of Other Liabilities--1.7% 14,923,568 -------------- TOTAL NET ASSETS--100% $ 903,976,545 ==============
(a) Non-income producing security. (b) See footnote number two in the Notes to the Financial Statements regarding investments in affiliated issuers. (c) Represents an American Depository Receipt. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 5 THE OAKMARK FAMILY OF FUNDS NOTES TO THE SCHEDULES OF INVESTMENTS (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES Harris Associates Investment Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an investment company organized as a Massachusetts business trust. The Trust consists of the following series (each individually referred to as "a Fund" or collectively as "the Funds"): The Oakmark Fund ("Oakmark"), The Oakmark Select Fund ("Select"), The Oakmark Equity and Income Fund ("Equity and Income"), The Oakmark Global Fund ("Global"), The Oakmark International Fund ("International"), and The Oakmark International Small Cap Fund ("Int'l Small Cap"). SECURITY VALUATION -- Securities traded on securities exchanges and over-the-counter securities are valued at the last sales price on the day of valuation, or lacking any reported sales that day, at the most recent bid quotation. Securities traded on the NASDAQ National Market are valued at the NASDAQ Official Closing Price ("NOCP"), or lacking an NOCP, at the most recent bid quotation on the NASDAQ National Market. Debt obligations and money market instruments maturing in more than 60 days from the date of purchase are valued at the latest bid quotation. Debt obligations and money market instruments maturing in less than 61 days from the date of purchase are valued on an amortized cost basis which approximates market value. Options are valued at the last reported sale price on the day of valuation, or lacking any reported sales that day, at the mean of the most recent bid and ask quotations. Securities traded in foreign markets are valued using prices reported by local foreign markets. Securities for which quotations are not readily available, or securities which may have been affected by a significant event after the price was determined, and other assets are valued at a fair value as determined by or under the direction of pricing committee established by the Board of Trustees. The Funds' net asset values are determined at the time of the close of the New York Stock Exchange. The pricing committee will evaluate movements in the U.S. markets after the close of foreign markets and may adjust security prices to reflect changes in reaction to U.S. markets as determined by a third party model. At June 30, 2005, the Funds held no securities for which quotations were not readily available, and no securities which may have been affected by a significant event prior to the computation of NAV. FOREIGN CURRENCY TRANSLATIONS -- Values of investments and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the mean of the bid and offer prices of such currencies at the time net asset value is determined. Purchases and sales of investments and dividend and interest income are converted at the prevailing rate of exchange on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized gain or loss from securities. Net realized gains or losses on foreign currency transactions arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually received or paid, and the realized gains or losses resulting from portfolio and transaction hedges. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities, other than investments in securities at fiscal year end, resulting from changes in exchange rates. FORWARD FOREIGN CURRENCY CONTRACTS-- The Funds' currency transactions are limited to transaction hedging and portfolio hedging involving either specific transactions or portfolio positions. The contractual amounts of forward foreign exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. Risks arise from the possible inability of counter parties to meet the terms of their contracts and from movements in currency values. At June 30, 2005, Global, International and Int'l Small Cap held the following outstanding forward foreign currency contracts: THE OAKMARK GLOBAL FUND
VALUATION AT UNREALIZED CONTRACT AMOUNT SETTLEMENT DATE 6/30/05 APPRECIATION -------------------------------------------------------------------------- FOREIGN CURRENCY SOLD: British Pound Sterling 47,900,000 July 2005 $ 85,783,923 $ 900,707 Swiss Franc 73,000,000 November 2005 57,566,874 5,396,728 ---------------- --------------- $ 143,350,797 $ 6,297,435 ================ ===============
THE OAKMARK INTERNATIONAL FUND
VALUATION AT UNREALIZED CONTRACT AMOUNT SETTLEMENT DATE 6/30/05 APPRECIATION -------------------------------------------------------------------------- FOREIGN CURRENCY SOLD: British Pound Sterling 142,000,000 July 2005 $ 254,326,303 $ 1,685,497 British Pound Sterling 140,000,000 July 2005 250,725,454 2,632,546 British Pound Sterling 65,000,000 November 2005 116,039,828 3,872,172 British Pound Sterling 64,500,000 December 2005 115,132,574 7,443,226 British Pound Sterling 42,600,000 December 2005 76,038,900 5,335,620 Swiss Franc 302,000,000 November 2005 238,153,368 22,326,190 Swiss Franc 174,000,000 November 2005 137,225,966 13,227,990 Swiss Franc 129,400,000 November 2005 102,095,756 10,848,296 Swiss Franc 88,700,000 December 2005 70,073,951 9,087,137 ---------------- ---------------- $ 1,359,812,100 $ 76,458,674 ================ ================
THE OAKMARK INTERNATIONAL SMALL CAP FUND
VALUATION AT UNREALIZED CONTRACT AMOUNT SETTLEMENT DATE 6/30/05 APPRECIATION -------------------------------------------------------------------------- FOREIGN CURRENCY SOLD: British Pound Sterling 11,200,000 July 2005 $ 20,059,539 $ 132,941 British Pound Sterling 11,400,000 July 2005 20,416,216 214,364 British Pound Sterling 4,700,000 November 2005 8,390,572 279,988 British Pound Sterling 4,600,000 December 2005 8,211,005 530,835 British Pound Sterling 1,100,000 December 2005 1,963,446 137,774 British Pound Sterling 13,600,000 January 2006 24,264,127 1,059,073 British Pound Sterling 11,000,000 May 2006 19,613,442 604,558 Swiss Franc 53,500,000 November 2005 42,189,421 3,955,136 Swiss Franc 30,800,000 November 2005 24,290,573 2,341,507 Swiss Franc 23,700,000 November 2005 18,699,145 1,986,898 Swiss Franc 16,800,000 December 2005 13,272,180 1,721,126 ---------------- ---------------- $ 201,369,666 $ 12,964,200 ================ ================
RESTRICTED SECURITIES - The following investments, the sales of which are restricted to qualified institutional buyers, have been valued according to the securities valuation procedures for debt obligations and money market instruments (as stated above) since their acquisition dates. There are no unrestricted securities with the same maturity dates and yields for these issuers. These securities are priced using market quotations and are not expressed as a discount to the carrying value of a comparable unrestricted security.
PERCENTAGE QUANTITY SECURITY NAME ACQUISITION DATE CARRYING VALUE COST MARKET VALUE OF TNA 3,000,000 Sealed Air Corporation, 144A, 5.625% due 7/15/2013 6/27/2003 102.758 100.68 3,082,740 0.04% 5,000,000 Sealed Air Corporation, 144A, 5.625% due 7/15/2013 8/20/2003 102.758 96.41 5,137,900 0.06% 300,000 Sealed Air Corporation, 144A, 5.625% due 7/15/2013 8/21/2003 102.758 96.79 308,274 0.00% 11,700,00 Sealed Air Corporation, 144A, 5.625% due 7/15/2013 4/6/2004 102.758 103.31 12,022,686 0.13% ------------------------ Totals 20,551,600 0.23%
2. TRANSACTIONS WITH AFFILIATES An affiliated issuer, as defined under the Investment Company Act of 1940, is one in which the Trust's holdings of an issuer represent 5% or more of the outstanding voting securities of the issuer. A summary of each Fund's investments in securities of these issuers for the the quarter ended June 30, 2005, is set forth below: SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES THE OAKMARK FUND
MARKET VALUE PURCHASES SALES DIVIDEND JUNE 30, AFFILIATES SHARES (COST) PROCEEDS INCOME 2005 ------------------------------------------------------------------------------------------------------------------------ H&R Block, Inc. 3,029,300 $ 0 $ 0 $ 1,999,338 $ 176,759,655 Toys 'R' Us, Inc.**+ 0 0 74,230,258 0 0 -------------- -------------- -------------- -------------- TOTALS $ 0 $ 74,230,258 $ 1,999,338 $ 176,759,655
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES THE OAKMARK SELECT FUND
MARKET VALUE PURCHASES SALES DIVIDEND JUNE 30, AFFILIATES SHARES (COST) PROCEEDS INCOME 2005 ----------------------------------------------------------------------------------------------------------------------- H&R Block, Inc. 8,259,800 0 9,870,355 5,481,608 481,959,330 The Dun & Bradstreet Corporation + 3,934,900 0 0 0 242,586,585 Toys 'R' Us, Inc.**+ 0 0 275,921,973 0 0 -------------- -------------- -------------- -------------- TOTALS $ 0 $ 285,792,328 $ 5,481,608 $ 724,545,915
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES THE OAKMARK EQUITY AND INCOME FUND
MARKET VALUE PURCHASES SALES DIVIDEND JUNE 30, AFFILIATES SHARES (COST) PROCEEDS INCOME 2005 ------------------------------------------------------------------------------------------------------------------------ Mentor Graphics Corporation + 3,640,000 $ 0 $ 0 $ 0 $ 37,310,000 St. Mary Land & Exploration*** Company 2,900,000 0 0 217,500 84,042,000 -------------- -------------- -------------- -------------- TOTALS $ 0 $ 0 $ 217,500 $ 121,352,000
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES THE OAKMARK GLOBAL FUND
MARKET VALUE PURCHASES SALES DIVIDEND JUNE 30, AFFILIATES SHARES (COST) PROCEEDS INCOME 2005 ------------------------------------------------------------------------------------------------------------------------ Euronext NV 1,814,000 $ 0 $ 0 $ 1,331,004 $ 61,443,987 Grupo Aeroportuario del Sureste S.A. de C.V. 463,000 0 0 262,614 14,746,550 Lonza Group AG, Registered Shares 408,400 0 18,369,630 768,703 22,608,341 Lotte Chilsung Beverage Co., Ltd. 13,430 0 0 25,790 11,631,977 Meitec Corporation 760,000 0 0 236,902 23,379,341 Michael Page International plc 4,815,400 0 0 251,558 17,447,681 Orbotech, Ltd. **+ 0 0 8,853,195 0 0 -------------- -------------- -------------- -------------- TOTALS $ 0 $ 27,222,825 $ 2,876,571 $ 151,257,877
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES THE OAKMARK INTERNATIONAL FUND
MARKET VALUE PURCHASES SALES DIVIDEND JUNE 30, AFFILIATES SHARES (COST) PROCEEDS INCOME 2005 ------------------------------------------------------------------------------------------------------------------------ Chargeurs SA 790,182 $ 0 $ 0 $ 1,158,675 $ 26,774,685 Enodis plc + 33,585,320 0 0 0 69,494,156 Euronext NV 5,012,500 2,015,107 0 3,677,872 169,783,894 Grupo Aeroportuario del Sureste S.A. de C.V. ** 0 0 6,338,193 0 0 Lonza Group AG, Registered Shares 1,797,700 0 28,694,082 2,226,145 99,517,665 Lotte Chilsung Beverage Co., Ltd. 83,400 0 0 160,154 72,234,316 Meitec Corporation 2,483,800 14,989,811 0 768,413 76,407,379 Michael Page International plc 26,290,000 8,603,466 0 1,342,520 95,256,787 Orbotech, Ltd. + 1,237,700 0 0 0 26,598,173 -------------- -------------- -------------- -------------- TOTALS $ 25,608,384 $ 35,032,275 $ 9,333,779 $ 636,067,055
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES THE OAKMARK INT'L SMALL CAP FUND
MARKET VALUE PURCHASES SALES DIVIDEND JUNE 30, AFFILIATES SHARES (COST) PROCEEDS INCOME 2005 ------------------------------------------------------------------------------------------------------------------------ Alaska Milk Corporation 56,360,000 $ 363,857 $ 0 $ 220,627 $ 3,070,978 Grupo Aeroportuario del Sureste S.A. de C.V. 149,700 0 32,024,647 137,773 4,767,945 Gurit-Heberlein AG 36,075 0 0 704,160 25,557,758 Interpump Group S.p.A 5,326,600 8,215,797 0 833,650 34,350,654 Mainfreight Limited 7,475,285 0 2,647,090 223,957 15,081,612 Matichon Public Company Limited, Foreign Shares 20,395,000 0 0 154,488 3,504,041 Morse plc 12,174,000 5,110,936 0 695,343 15,266,805 Orbotech, Ltd. + 536,500 11,189,347 0 0 11,529,385 Royal Doulton plc **+ 0 0 5,020,783 0 0 Vitec Group plc 2,383,907 2,686,299 0 383,265 14,264,370 -------------- -------------- -------------- -------------- TOTALS $ 27,566,236 $ 39,692,520 $ 3,353,263 $ 127,393,548 -------------- -------------- -------------- --------------
* Due to transactions during the period, the company is no longer an affiliated security. ** Position in issuer liquidated during the 9 months. *** Due to a decrease in shares outstanding, the company became an affiliated issuer. + Non-income producing security. 3. FEDERAL INCOME TAXES At June 30, 2005, the cost of securities and the unrealized appreciation (depreciation) in the value of investments owned by the Funds, as computed on a Federal income tax basis, were as follows:
COST OF INVESTMENTS NET UNREALIZED FOR FEDERAL INCOME GROSS UNREALIZED GROSS UNREALIZED APPRECIATION FUND TAX PURPOSES APPRECIATION (DEPRECIATION) (DEPRECIATION) -------------------------------------------------------------------------------------------------------------- Oakmark $ 5,431,379,174 $ 1,462,217,061 $ (74,086,600) $ 1,388,130,461 Select 4,118,568,183 1,900,842,692 (43,323,275) 1,857,519,417 Equity and Income 7,740,555,046 1,329,409,068 (62,728,972) 1,266,680,096 Global 1,355,105,517 358,209,562 (15,268,655) 342,940,907 International 4,190,187,217 1,126,258,228 (23,572,382) 1,102,685,846 Int'l Small Cap 726,459,350 192,523,357 (30,220,004) 162,303,353
ITEM 2. CONTROLS AND PROCEDURES. (a) The Registrant's principal executive and principal financial officers have concluded, based on an evaluation of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, the "Disclosure Controls"), within 90 days prior to the filing of this report, the Disclosure Controls are effectively designed to ensure that information required to be disclosed by the Registrant in this report is recorded, processed, summarized and reported, including ensuring that information required to be disclosed in this report is accumulated and communicated to the Registrant's management, including the Registrant's principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant's most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 3. EXHIBITS. (a) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2), attached hereto as Exhibits (a)(1) and (a)(2) SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Harris Associates Investment Trust By: /s/ John R. Raitt -------------------------------------- John R. Raitt Principal Executive Officer Date: August 25, 2005 -------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/ John R. Raitt -------------------------------------- John R. Raitt Principal Executive Officer Date: August 25, 2005 -------------------------------------- By: /s/ Kristi L. Rowsell / -------------------------------------- Kristi L. Rowsell Principal Financial Officer Date: August 25, 2005 --------------------------------------