<PAGE>
SUMMIT
MUTUAL ANNUAL REPORT
FUNDS
SUMMIT APEX SERIES
-------------------------------------------------------------
S&P 500 Index Fund
S&P MidCap 400 Index Fund
Russell 2000 Small Cap Index Fund
Nasdaq-100 Index Fund
Balanced Index Fund
Lehman Aggregate Bond Index Fund
Everest Fund
Bond Fund
Short-Term Government Fund
Money Market Fund
SEPTEMBER 30, 2000 [LOGO] SUMMIT
MUTUAL
FUNDS
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
ANNUAL REPORT - TABLE OF CONTENTS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
President's Message......................................... 1
Investment Review
S&P 500 Index Fund...................................... 2
S&P MidCap 400 Index Fund............................... 4
Russell 2000 Small Cap Index Fund....................... 6
Nasdaq-100 Index Fund................................... 8
Balanced Index Fund..................................... 10
Lehman Aggregate Bond Index Fund........................ 12
Everest Fund............................................ 14
Bond Fund............................................... 16
Short-Term Government Fund.............................. 18
Money Market Fund....................................... 20
Statements of Assets and Liabilities........................ 22
Statements of Operations.................................... 25
Statements of Changes in Net Assets......................... 28
Schedule of Investments
S&P 500 Index Fund...................................... 30
S&P MidCap 400 Index Fund............................... 36
Russell 2000 Small Cap Index Fund....................... 41
Nasdaq-100 Index Fund................................... 62
Balanced Index Fund..................................... 64
Lehman Aggregate Bond Index Fund........................ 71
Everest Fund............................................ 72
Bond Fund............................................... 73
Short-Term Government Fund.............................. 76
Money Market Fund....................................... 77
Notes to Financial Statements............................... 78
Independent Auditors' Report................................ 93
</TABLE>
THIS REPORT HAS BEEN PREPARED FOR THE INFORMATION OF SHAREHOLDERS AND BENEFICIAL
OWNERS AND IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE PURCHASERS UNLESS
IT IS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS FOR SUMMIT MUTUAL
FUNDS, INC.
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
ANNUAL REPORT - MESSAGE FROM THE PRESIDENT
--------------------------------------------------------------------------------
We are pleased to send you the Annual Report for the Summit Mutual Funds, a
family of funds for all your investing needs. We are also very pleased to
welcome new shareholders of the Funds who have joined us since our last report.
During the past several years, the benefits of investing have been readily
apparent, while the risks have been less obvious. Over the past six months,
however, investors have witnessed sharp drops and significant recoveries,
sometimes within the same day or week. The market's volatility over the past
several months has been extraordinary. The Nasdaq Composite Index, after closing
above 3,000 in November 1999 and 4,000 in December 1999, hit 5,000 in March 2000
as investor euphoria peaked. Then, the Nasdaq fell over 30% to end the first
nine months of 2000 at -9.63%. Though less volatile over the period, the S&P 500
Index ended in negative territory at -1.39%. These developments have confirmed
the lingering expectation that stock prices, especially technology companies,
were overdue for correction according to several traditional measures. On the
bright side, investors did see a broadening of the stock market as the stock
prices of medium size companies rose as evidenced by the S&P 400 MidCap Index
rising in excess of 20% through September 30, 2000.
All of these trends serve to remind us that although the market's ups and downs
can be harrowing, they are a natural part of market dynamics. This is why we
think it is a good time to reaffirm one of our primary investment principles:
Regardless of short-term market fluctuations, our philosophy has always been
that regular investing is the best strategy over the long run. Investors should
consider setting up their own investment program or using Summit's convenient
Automatic Investment Program to regularly transfer fixed amounts from bank
accounts or salary paychecks for investment in one or more Summit Funds.
Combined with periodic reviews of your portfolio, regular investing is a smart
way to remain committed to your investment goals.
Given this market environment, we believe the message is clear -- expect
continued market volatility, maintain a long-term investment horizon, and ensure
your investment strategy is appropriate for your risk tolerance. One way to
dampen volatility in a portfolio is to properly diversify your investments, both
within and across asset sectors, utilizing cash equivalents, bonds, and stocks.
With its broad range of funds, Summit Funds can be the foundation of a
diversified plan.
The past year has been eventful not only because of financial market activity,
but also because of the following significant developments:
- We launched an effort this year to increase both the timeliness and quality of
information provided to shareholders. Based on your calls and questions, we
know that you desire more information about our policies, fund performance,
and investment philosophy. Please visit the Fund's web site at
www.summitfunds.com to learn more.
- The planned introduction of two new funds in December 2000. These funds are:
SUMMIT EAFE INTERNATIONAL EQUITY INDEX FUND - The EAFE (Europe, Australasia, &
the Far East) Index is based on over 900 foreign companies in 20 different
countries constituting a major share of the world's capital markets;
SUMMIT TOTAL SOCIAL IMPACT (TSI) FUND - This socially responsible fund invests
in all 500 S&P companies with the weighting based on their TSI rating. The TSI
rating is derived from over 80 different measures of how companies treat their
stakeholders. In contrast to traditional socially responsible funds, the Summit
TSI Fund emphasizes excellent business practices instead of screening out
companies on a product specific basis, e.g. alcohol.
On the following pages you will find commentary from Summit's portfolio managers
and specific details as to each Fund's portfolio and total return investment
performance.
Summit Investment Partners maintains a firm commitment to making intelligent
investments and taking sensible risks. We know you work hard for your money.
Thank you for the trust that you have placed in us.
Sincerely,
/s/ Steven R. Sutermeister
Steven R. Sutermeister
President
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1
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
S&P 500 INDEX FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
The Summit Apex S&P 500 Index Fund (Fund) commenced operations on April 3, 2000.
The Fund's return since inception for the period ending September 30, 2000 was
-3.71%. The return of the S&P 500 Index, by comparison, was -3.60% for the same
period.
The S&P 500 Index posted a return of -1.39% for the nine-month period ending
September 30, 2000. The negative return for the period reflects investor
concerns over rising interest rates and soaring energy prices, which threaten to
end the record U.S. economic expansion. The period witnessed a marked change in
investor sentiment, as investors trimmed their holdings in many of the large
capitalization, high price-to-earnings (P/E) stocks that led the market higher
in recent years. Beneficiaries of this shift were companies with greater
earnings predictability and more reasonable P/E ratios.
On a relative basis, the sectors that contributed positively to the Index's
return for the period included utilities (up 53.9%), financials (up 24.4%),
health care (up 24%) and energy (up 14.9%). The technology sector's 9.7% decline
represented the single largest drag on returns for the period, due to its 29%
index weighting. Other sectors detracting from return included basic materials
(down 29%), communication services (down 23%) and consumer cyclicals (down 21%).
TOP TEN HOLDINGS
-------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. General Electric Company 6. Intel Corporation
2. Cisco Systems, Inc. 7. Citigroup, Inc.
3. Microsoft Corporation 8. Oracle Systems
4. Exxon Mobil Corporation 9. American International Group
5. Pfizer, Inc. 10. EMC Corporation
</TABLE>
--------------------------------------------------------------------------------
2
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
S&P 500 INDEX FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks investment results that correspond to the
total return performance of U.S. common stocks, as
represented by the Standard & Poor's 500 Composite
Stock Index ("the S&P 500").
STRATEGY: The S&P 500 Index Fund will remain fully invested
in stocks included in the S&P 500 and in futures
contracts on the Index. The cash position will be
held in highly liquid money market instruments to
meet redemptions and to provide cash for future
stock purchases.
INCEPTION: April 3, 2000
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000, the S&P 500 Index Fund had net assets of $160,898,702 and
diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 98.1%
Short-Term and Other 1.9%
</TABLE>
As an investor in the Summit S&P 500 Index Fund, for every $1 you had invested
on September 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Basic Industries 1.9%
Capital Goods 9.1%
Consumer Durables 1.1%
Consumer Non-Durable 6.0%
Consumer Services 11.5%
Energy 5.7%
Finance 15.4%
Health Care 11.3%
Public Utilities 8.6%
Technology 27.0%
Transportation 0.5%
Short-Term, Futures, & Other 1.9%
</TABLE>
"Standard & Poor's", "S&P", "S&P 500", "Standard & Poor's 500", "500", "S&P
MidCap 400 Index", and "Standard & Poor's MidCap 400 Index" are trademarks of
The McGraw-Hill Companies, Inc. and have been licensed for use by Summit Mutual
Funds, Inc. The Product is not sponsored, endorsed, sold or promoted by
Standard & Poor's and Standard & Poor's makes no representation regarding the
advisability of investing in the Product.
--------------------------------------------------------------------------------
3
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
S&P MIPCAP 400 INDEX FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
The Summit Apex S&P MidCap 400 Index Fund (Fund) commenced operations on
April 3, 2000. The Fund's return since inception for the period ending
September 30, 2000 was 7.41%. The S&P MidCap 400 Index, by comparison, returned
8.46% for the same period.
The S&P Midcap 400 Index gained 22.21% for the nine-month period ending
September 30, 2000, far outpacing the returns of most other major indices. The
Index is representative of medium-sized companies, many of which were
beneficiaries of the shift out of the large capitalization, high
price-to-earnings (P/E) stocks that led the market higher in recent years. The
Index's return was particularly impressive in light of difficult market
conditions, such as higher interest rates and energy prices, which contributed
to the broad market declines of other indices in the period.
The best performing sectors for the period were those that are traditionally
viewed as defensive, which possess more predictable earnings growth and trade at
more reasonable P/E ratios. On a relative basis, the top-performing sector in
the Index was health care, which gained 36.2%. Also performing well for the
period were the energy (up 35.4%) and utility (up 31.9%) sectors. Despite the
modest 5.4% gains registered in the technology segment, this sector accounted
for 31% of the index's total return. Sectors detracting from performance for the
period were communication services (down 39%), basic materials (down 32%) and
consumer staples (down 25%).
TOP TEN HOLDINGS
-------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. S&P MidCap 400 Depositary Receipts 6. Rational Software Corporation
2. Dynegy, Inc. 7. Intuit, Inc.
3. Vitesse Semiconductor 8. Waters Corporation
4. Calpine Corporation 9. Jabil Circuit
5. Millennium Pharmaceuticals 10. Forest Laboratories Class A
</TABLE>
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4
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
S&P MIPCAP 400 INDEX FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks investment results that correspond to the
total return performance of U.S. common stocks, as
represented by the Standard & Poor's MidCap 400
Composite Stock Index ("the S&P 400").
STRATEGY: The S&P MidCap 400 Index Fund will remain fully
invested in stocks included in the S&P 400 and in
futures contracts on the Index. The cash position
will be held in highly liquid money market
instruments to meet redemptions and to provide
cash for future stock purchases.
INCEPTION: April 3, 2000
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000, the S&P 400 MidCap Index Fund had net assets of
$24,015,003 and diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 81.2%
Short-Term and Other 18.8%
</TABLE>
As an investor in the Summit S&P MidCap 400 Index Fund, for every $1 you had
invested on September 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Basic Industries 3.5%
Capital Goods 3.7%
Consumer Durables 2.1%
Consumer Non-Durable 3.6%
Consumer Services 9.7%
Energy 6.9%
Finance 9.6%
Health Care 10.8%
Public Utilities 9.1%
Technology 21.3%
Transportation 0.9%
Short-Term, Futures, & Other 18.8%
</TABLE>
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5
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
The Summit Apex Russell 2000 Small Cap Index Fund (Fund) commenced operations on
December 29, 1999. The Fund's return since inception for the period ending
September 30, 2000 was 7.70%. The Russell 2000 Index, by comparison, had a
return of 7.75% for the same period.
The Russell 2000 Index advanced 4.23% for the nine-month period ending
September 30, 2000. The Index is a popular proxy for the small-cap sector of the
market, which has benefited this year from a broadening in the overall market.
Following several years of underperforming the overall market, the Russell 2000
outperformed both the S&P 500 and Nasdaq 100 Indices during the first nine
months of 2000.
On a relative basis, the top-performing sector for the period was health care,
which gained 32.7% year-to-date. This has traditionally been a defensive sector,
providing a haven for investors seeking earnings stability during periods of an
economic slowdown. Strong gains were also registered in the energy (up 22.8%)
and financial (up 12%) sectors. Technology, which declined 32.9% for the period,
was the single largest contributor to the Index's total return. Other sectors
that detracted from performance for the period included communication services
(down 59.1%) and basic materials (down 17%).
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Summit Russell 2000 Small Cap Index Fund Total Return
Since Inception
7.70%
Past performance is not predictive of future results.
Annuity contract charges, if applicable, are not reflected.
<TABLE>
<CAPTION>
RUSSELL 2000
INDEX FUND RUSSELL 2000 INDEX
<S> <C> <C>
12/27/99 $10,000 $10,000
12/31/99 $10,310 $10,338
1/31/00 $10,070 $10,170
2/29/00 $12,200 $11,851
3/31/00 $11,099 $11,071
4/30/00 $10,449 $10,405
5/31/00 $9,839 $9,798
6/30/00 $10,658 $10,654
7/31/00 $10,328 $10,321
8/31/00 $11,099 $11,104
9/30/00 $10,768 $10,775
</TABLE>
TOP TEN HOLDINGS
--------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. iShares Russell 2000 Index Fund 6. Plexus Corporation
2. Interwoven, Inc. 7. AmeriSource Health Corporation
3. MMC Networks, Inc. 8. Apex, Inc.
4. Enzon, Inc. 9. Silicon Valley Bancshares
5. Veeco Instruments, Inc. 10. Metris Companies Inc.
</TABLE>
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6
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks investment results that correspond to the
investment performance of U.S. common stocks, as
represented by the Russell 2000 Index ("the
Russell 2000").
STRATEGY: The Russell 2000 Small Cap Index Fund will remain
fully invested in stocks included in the Russell
2000 Index and in futures contracts on the Index.
The cash position will be held in highly liquid
market instruments to meet redemptions and to
provide cash for future stock purchases.
INCEPTION: December 29, 1999
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000, the Russell 2000 Small Cap Index Fund had net assets of
$15,888,785 and diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 86.4%
Short-Term & Other 13.6%
</TABLE>
As an investor in the Summit Russell 2000 Small Cap Index Fund, for every $1 you
had invested on September 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Basic Industries 5.0%
Capital Goods 5.7%
Consumer Durables 3.1%
Consumer Non-Durables 3.3%
Consumer Services 13.6%
Energy 3.3%
Finance 16.6%
Health Care 11.5%
Public Utilities 4.5%
Technology 18.3%
Transportation 1.5%
Short-Term, Futures, & Other 13.6%
</TABLE>
The Russell 2000 Index is a trademark/service mark of the Frank Russell Company.
Russell is a trademark of the Frank Russell Company. Summit Mutual Funds and the
Russell 2000 Small Cap Index Portfolio are not promoted, sponsored or endorsed
by, nor in any way affiliated with Frank Russell Company. Frank Russell is not
responsible for and has not reviewed the Prospectus, and Frank Russell makes no
representation or warranty, express or implied, as to its accuracy, or
completeness, or otherwise.
--------------------------------------------------------------------------------
7
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NASDAQ-100 INDEX FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
The Summit Apex Nasdaq-100 Index Fund (Fund) commenced operations on
December 28, 1999. The Fund's return since inception for the period ending
September 30, 2000 was -0.62%. The Nasdaq 100 Index, by comparison, returned
-0.75% for the same period.
For the nine-month period ending September 30, 2000, the Nasdaq 100 Index
declined 3.68%. The weak performance comes on the heels of a 102% gain in 1999,
and reflects investor's fears that rising interest rates and sharply higher
energy prices will halt the longest economic expansion in U.S history.
Positively contributing to the Index's year-to-date return were Siebel Systems
(up 165%), Juniper Networks (up 286%), and Ciena (up 327%). Offsetting these
strong gains were sharp declines in some of the Index's largest constituents,
Microsoft (down 48%) and QUALCOMM (down 60%). These two companies represent 9.9%
and 7.4%, respectively, of the entire Index. Also detracting from performance
were CMGI (down 80%) and Yahoo (down 58%).
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Summit Nasdaq-100 Index Fund Total Returns
Since Inception
-0.6%
Past performance is not predictive of future results.
Annuity contract charges, if applicable, are not reflected.
<TABLE>
<CAPTION>
NASDAQ-100
INDEX FUND NASDAQ-100 INDEX
<S> <C> <C>
12/27/99 $10,000 $10,000
12/31/99 $10,310 $10,304
1/31/00 $9,970 $9,921
2/29/00 $12,020 $11,859
3/31/00 $12,309 $12,222
4/30/00 $10,590 $10,487
5/31/00 $9,309 $9,239
6/30/00 $10,539 $10,461
7/31/00 $10,069 $10,032
8/31/00 $11,371 $11,334
9/30/00 $9,927 $9,925
</TABLE>
TOP TEN HOLDINGS
-------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. Cisco Systems, Inc. 6. JDS Uniphase Corporation
2. Nasdaq-100 Shares 7. Sun Microsystems
3. Microsoft Corporation 8. QUALCOMM, Inc.
4. Intel Corporation 9. Veritas Software
5. Oracle Corporation 10. Siebel Systems, Inc.
</TABLE>
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8
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NASDAQ-100 INDEX FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks investment results that correspond to the
investment performance of U.S. common stocks, as
represented by the Nasdaq-100 Index ("the
Nasdaq-100").
STRATEGY: The Nasdaq-100 Index Fund will remain fully
invested in stocks included in the Nasdaq-100 and
in futures contracts on the Index. The cash
position will be held in highly liquid money
market instruments to meet redemptions and to
provide cash for future stock purchases.
INCEPTION: December 28, 1999
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000, the Nasdaq-100 Index Fund had net assets of $13,092,580
and diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 68.7%
Short-Term & Other 31.3%
</TABLE>
As an investor in the Summit Nasdaq-100 Index Fund, for every $1 you had
invested on September 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Basic Industries 0.2%
Capital Goods 1.2%
Consumer Non-Durables 0.3%
Consumer Services 5.5%
Health Care 4.1%
Public Utilities 3.9%
Technology 53.4%
Transportation 0.1%
Short-Term, Futures, & Other 31.3%
</TABLE>
"Nasdaq" and related marks are trademarks or service marks of The Nasdaq Stock
Market, Inc. and have been licensed for use for certain purposes by Summit
Mutual Funds, Inc. and the Nasdaq-100 Index Portfolio. Nasdaq makes no warranty,
express or implied, and bears no liability with respect to Summit Mutual Funds,
its use, or any data included therein.
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9
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
BALANCED INDEX FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
The Summit Apex Balanced Index Fund (Fund) commenced operations on April 3,
2000. The Fund's return since inception for the period ending September 30, 2000
was -0.12%. The objective of the Fund is to produce investment results, with
respect to 60% of its assets, that correspond to the total return performance of
the S&P 500 Index, and, with respect to 40% of its assets, investment results
that correspond to the total return performance of the Lehman Brothers Aggregate
Bond Index.
Since the Fund's inception, the market environment can be characterized by
rising interest rates and soaring energy prices, the combination of which have
produced some of the sharpest declines in stock prices that we have witnessed in
several years. The Fund's exposure to investment-grade, intermediate bonds has
helped to offset these stock market declines. The appeal of fixed income
securities, which offer relative stability and a more predictable revenue
stream, is often enhanced during periods of market volatility. This year has
been no exception.
TOP TEN EQUITY HOLDINGS
-------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. S&P 500 Depositary Receipts 6. Pfizer, Inc.
2. General Electric Company 7. Intel Coporation
3. Cisco Systems, Inc. 8. Citigroup, Inc.
4. Microsoft Corporation 9. Oracle Systems
5. Exxon Mobil Corporation 10. American International Group
</TABLE>
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10
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
BALANCED INDEX FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks investment results, with respect to 60% of
its assets, that correspond to the total return of
U.S. common stocks, as represented by the S&P 500
Index and, with respect to 40% of its assets, that
correspond to the total return performance of
investment grade bonds, as represented by the
Lehman Brothers Aggregate Bond Index.
STRATEGY: The Balanced Index Fund will invest approximately
60% of its nets assets in a portfolio of stocks
included in the S&P 500 and in futures of the
Index and approximately 40% of its net assets in a
portfolio of investment grade bonds designed to
track the Lehman Aggregate Bond Index.
INCEPTION: April 3, 2000
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000, the Balanced Index Fund had net assets of $34,140,333 and
diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 55.2%
Bonds and Notes 39.3%
Short-Term and Other 5.5%
</TABLE>
As an investor in the Summit Balanced Index Fund, for every $1 you had invested
on September 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Stocks 55.2%
Treasuries & Agency Notes 11.7%
Mortgage-Backed Securities 15.3%
Corporate Bonds 12.3%
Short-Term & Other 5.5%
</TABLE>
--------------------------------------------------------------------------------
11
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
LEHMAN AGGREGATE BOND INDEX FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
The Summit Apex Lehman Aggregate Bond Index Fund (Fund) commenced operations on
April 3, 2000. The Fund's return since inception for the period ending
September 30, 2000 was 4.55%, versus the Index return of 4.81%.
The Lehman Brothers Aggregate Bond Index returned 7.12% for the nine-month
period ending September 30, 2000. The Index is a proxy for intermediate-term,
investment grade bonds, including corporate, treasury, agency, and asset-backed
bonds. These securities provided investors a safe haven from the volatility of
stocks this year, many of which have fallen amid fears over rising interest
rates, sharply higher energy prices, and a slowing economy. U.S. Treasury
securities, a sizable component of the Index, benefited from projected budget
surpluses and continued government debt buybacks.
--------------------------------------------------------------------------------
12
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
LEHMAN AGGREGATE BOND INDEX FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks investment results that correspond to the
total return performance of the bond market, as
represented by the Lehman Brothers Aggregate Bond
Index ("Lehman Bond Index").
STRATEGY: The Lehman Aggregate Bond Index Fund will invest
at least 80% of the value of its assets in
obligations issued or guaranteed by the U.S.
Government, publicly-traded debt securities rated
BBB- or BAA3 or higher by a national rating
agency, or cash and cash equivalents. Up to 20% of
the Portfolio's total assets may be invested in
financial futures or options contracts. The
Portfolio will not purchase bonds rated below
investment grade.
INCEPTION: April 3, 2000
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000 the Lehman Aggregate Bond Index Fund had net assets of
$16,290,108 and diversified holdings of:
<TABLE>
<S> <C>
Bonds 97.7%
Short-Term and Other 2.3%
</TABLE>
As an investor in the Summit Lehman Aggregate Bond Index Fund, for every $1 you
had invested on September 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Treasuries & Agency Notes 45.9%
Mortgage-Backed Securities 32.5%
Corporate Bonds 19.3%
Short-Term & Other 2.3%
</TABLE>
--------------------------------------------------------------------------------
13
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
EVEREST FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
The Everest Fund's performance for the period December 29, 1999 to
September 30, 2000 was +3.21% versus -0.55% for the S&P 500 and a +5.29% for the
Russell 1000 Value Index.
Since the Fund's inception the stock market has been marked by sector rotation
which pushed favored sectors to overpriced levels, pulled out-of-favor sectors
down to levels that were below private values for many companies, and then
reversed course. The technology run-up to all-time highs was followed by dives
of breathtaking speed. Technology stocks seemed to move on the next marginal
piece of market commentary. Early in the year, if the news was good the stock
soared; if the news was negative the stock plummeted. In the autumn, if the news
was good the stock didn't go down; if a company's earnings forecast was negative
the stock declined precipitously due to momentum investors liquidating their
positions. This volatility permeates almost all indices as the NASDAQ dominates
the headlines, the S&P 500 has exposure of over 30% to technology and even the
Dow Jones Industrials added Microsoft and Intel to the Index in 1999.
The Everest Fund tries to be opportunistic when establishing positions and
attempts to purchase equities when their price-to-earnings (P/E) ratio is below
that of the S&P 500. For example, during the first half of 2000, the
pharmaceutical stocks were selling at below average market P/Es (which occurs
very infrequently) and were acquired. This exposure benefited the Fund when
biotech stocks swooned and momentum investors switched into pharmaceuticals to
find growth stocks that weren't technology related.
Additionally, the Everest Fund attempts to benefit from the consumption for new
technologies without paying the above market P/Es expected to participate
directly in the high tech sector. This strategy stresses acquiring industrial
companies that supply necessary components to the high tech sector, but that are
selling at below average market P/Es.
Another industrial sector that has been out of favor and appears to be
consolidating and gaining political favor is the defense industrial stocks.
Recently the Pentagon sponsored a study to promote the financial health of the
defense industry. This action plus the political mood in the country appear to
bode well for more defense appropriation spending.
The Everest Fund has exposure to the Financial Services sector because of its
undervalued nature. Also, as a result of the government's overhaul of federal
banking regulations, which now permits commercial banks to underwrite corporate
securities and own broker-dealer affiliates, more consolidation is likely. The
trend towards consolidation gathered speed in the third quarter as regional and
money center banks began to consolidate.
As mentioned at the outset, the sector rotation and technology headline
domination have impacted the financial markets. The Everest Fund will seek to
acquire sectors that become attractively priced as a result of the volatility in
the market and will reduce holdings in technology stocks until their valuation
levels provide better buying opportunities.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Summit Everest Fund Total Return
Since Inception
3.20%
Past performance is not predictive of future results.
Annuity contract charges, if applicable, are not reflected.
<TABLE>
<CAPTION>
EVEREST RUSSELL 1000
FUND VALUE INDEX
<S> <C> <C>
12/27/99 $10,000 $10,000
12/31/99 $10,040 $10,193
1/31/00 $9,450 $9,861
2/29/00 $8,760 $9,128
3/31/00 $9,860 $10,242
4/30/00 $9,670 $10,122
5/31/00 $10,040 $10,229
6/30/00 $9,780 $9,762
7/31/00 $9,720 $9,884
8/31/00 $10,231 $10,434
9/30/00 $10,321 $10,529
</TABLE>
--------------------------------------------------------------------------------
14
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
EVEREST FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks long-term appreciation of capital by
investing in common stocks and other equity
securities with values that are, at present, not
fully recognized by the market.
STRATEGY: The Everest Fund will remain in a highly invested
position ranging from 86% to 98%. The cash
position will be held in highly liquid money
market instruments to meet redemptions and to
provide cash for future stock purchases as new
opportunities arise.
INCEPTION: December 29, 1999
MANAGER: James McGlynn
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000, the Everest Fund had net assets of $49,439,781 and
diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 96.2%
Short-Term and Other 3.8%
</TABLE>
As an investor in the Summit Everest Fund, for every $1 you had invested on
September 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Communications Services 13.9%
Consumer Cyclical 10.9%
Consumer Non-Durables 13.0%
Energy 10.2%
Financial 22.3%
Industrial 14.5%
Public Utilities 4.6%
Technology 6.8%
Short-Term & Other 3.8%
</TABLE>
TOP TEN HOLDINGS
-------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. Scana Corp. 6. Sara Lee Corp.
2. SBC Communications Inc. 7. Conoco Inc.
3. Verizon Communications 8. Chevron Corporation
4. Summit Bancorp 9. ITT Industries Inc.
5. Washington Mutual Inc. 10. First Union Corp.
</TABLE>
--------------------------------------------------------------------------------
15
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
BOND FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
The U.S. economy continued its strong growth during the first three quarters of
2000. Unemployment is currently at a 30-year low of 3.9%. Inflation is
maintaining a moderate pace, while productivity remains positive. After raising
rates for the past year, the Federal Reserve has taken a more neutral stance for
the time being. The extreme volatility in the equity market continues to be a
source of concern. The public has grown to expect positive equity performance.
The fixed income market has not been immune from the disruptions in the economy.
Corporate quality spreads (the extra measure of interest income expected for
added risk) have increased since the beginning of the year with lower rated
credits trading at the widest levels in 10 years.
Since its inception on April 3, 2000 through September 30, 2000, the Summit Apex
Bond Fund had a total return of 3.04%, before fees and expenses, versus the
Lehman Brothers Aggregate Bond Index return of 4.81%. The underperformance for
the period is attributed to the portion of the fund invested in the high yield
sector. While the high yield sector has hurt the performance during the period,
it remains a viable sector, which should provide incremental returns over a
longer period of time. However, over short periods any sector may underperform
the market as a whole. Other sectors performed in line with their respective
indices.
Looking ahead, the basic strategy for the Summit Apex Bond Fund will not change.
We will continue to attempt to outperform the bond market through superior
individual security selection, sector rotation and relative value analysis.
--------------------------------------------------------------------------------
16
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
BOND FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks a high level of current income, without
undue risk to principal, by investing in
long-term, fixed- income, investment-grade
corporate bonds.
STRATEGY: The Bond Fund intends to invest at least 75% of
the value of its assets in publicly-traded
straight debt securities which have a rating
within the four highest grades as rated by a
national rating agency. Up to 25% of the portfolio
may be invested in below investment grade
securities, convertible debt securities,
convertible preferred and preferred stock, or
other securities.
INCEPTION: April 3, 2000
MANAGERS: Gary R. Rodmaker and Michael J. Schultz
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000, the Bond Fund had net assets of $69,874,857 and
diversified holdings of:
<TABLE>
<S> <C>
Bonds 96.6%
Short-Term and Other 3.4%
</TABLE>
As an investor in the Summit Bond Fund, for every $1 you had invested on
September 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate Bond 53.6%
U.S. Treasuries 27.1%
Mortgage & Asset-Backed Securities 15.9%
Short-Term & Other 3.4%
</TABLE>
--------------------------------------------------------------------------------
17
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SHORT-TERM GOVERNMENT FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
The U.S. economy continued its strong growth during the first three quarters of
2000. Unemployment is currently at a 30-year low of 3.9%. Inflation is
maintaining a moderate pace, while productivity remains positive. After raising
rates for the past year, the Federal Reserve has taken a more neutral stance for
the time being. The extreme volatility in the equity market continues to be a
source of concern. The public has grown to expect positive equity performance.
The fixed income market has not been immune from the disruptions in the economy.
Corporate quality spreads (the extra measure of interest income expected for
added risk) have increased since the beginning of the year with lower rated
credits trading at the widest levels in 10 years.
Since its inception on April 3, 2000 through September 30, 2000, the Summit Apex
Short-Term Government Fund had a total return of 4.14%, before fees and
expenses, versus the Salomon 1-5 year Treasury Index return of 4.15%. The Fund
was designed with a short maturity structure that would respond less to interest
rate changes than long-term bonds while providing a higher anticipated yield
than money market funds.
Looking ahead, the basic strategy for the Summit Apex Short-Term Government Fund
will not change. The Fund will continue to maintain a very conservative asset
mix while attempting to outperform comparable short-term government bond funds
through sector rotation and relative value analysis.
--------------------------------------------------------------------------------
18
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SHORT-TERM GOVERNMENT FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks to provide a high level of current income
and preservation of capital by investing 100% of
total net assets in bonds issued by the U.S.
government and its agencies.
STRATEGY: The Short-Term Government Fund intends to invest
100% of the value of its assets in bonds issued by
the U.S. government and its agencies.
INCEPTION: April 3, 2000
MANAGER: Michael J. Schultz
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000, the Short-Term Government Fund had net assets of
$10,198,781 and diversified holdings of:
<TABLE>
<S> <C>
Bonds 96.8%
Short-Term and Other 3.2%
</TABLE>
As an investor in the Summit Short-Term Government Fund, for every $1 you had
invested on September 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Treasuries & Agency Notes 79.6%
Mortgage-Backed Securities 17.2%
Short-Term & Other 3.2%
</TABLE>
--------------------------------------------------------------------------------
19
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
MONEY MARKET FUND
--------------------------------------------------------------------------------
MANAGER'S COMMENTS:
We are delighted to report on the progress of Summit Apex Money Market Fund for
the period ending September 30, 2000. The Fund has achieved its investment
objectives and registered solid performance since its inception.
MARKET REVIEW:
Over the past calendar quarter, expectations of both a growth slowdown and an
end to the path of tightening monetary conditions became entrenched. Economic
data with few exceptions supported these perceptions of a soft landing.
Nevertheless, the wild card of inflation was difficult to dismiss. Core CPI has
trended higher and energy and agricultural prices are under upward pressure. In
this context, short-term instruments became expensively priced and the money
market yield curve flattened, in other words, the income reward for purchasing
longer maturities declined.
INVESTMENT ACTIVITY:
We generally favored lengthening throughout the period when attractive
opportunities became available. In our view monetary policy is on hold for the
balance of the year, and we wanted to take advantage of the modest income
pick-up for extensions. Accordingly we made selected purchases maturing in
calendar 2001 and endeavored to extend your Fund's average maturity.
OUTLOOK:
The unfolding economic scenario should be matched by both softer economic growth
and developing inflationary pressures. In this context capital markets will
remain volatile and your investment in Summit Apex Money Market Fund should be
rewarding. The Fund not only provides stability, convenience and flexibility for
your investment plans but also an attractive return.
We look forward to serving your investment needs.
--------------------------------------------------------------------------------
20
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
MONEY MARKET FUND
--------------------------------------------------------------------------------
SUMMARY
-------------------------------------------------------------------------------
<TABLE>
<S> <C>
OBJECTIVE: Seeks to maintain stability of capital and to
maintain the liquidity of capital and to provide
current income.
STRATEGY: The Money Market Fund intends to invest 100% of
the value of its assets in high quality short-term
securities.
INCEPTION: June 28, 2000
MANAGERS: Subadvised by Scudder Kemper Investments, Inc.
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On September 30, 2000, the Summit Money Market Fund had net assets of
$64,489,059 and as an investor for every $1 you had invested, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Floating Rate Note 4.6%
Commercial Paper 93.4%
Variable Rate Demand Notes and Other 2.0%
</TABLE>
--------------------------------------------------------------------------------
21
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
S&P RUSSELL 2000
S&P 500 MIDCAP 400 SMALL CAP NASDAQ-100
INDEX FUND INDEX FUND INDEX FUND INDEX FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (cost
$167,278,008; $22,415,948; $16,307,651;
$14,801,543) $160,664,795 $ 23,703,611 $ 15,846,795 $ 12,815,637
Cash 4,856 0 1,350 0
Receivables:
Shares sold 7,314 89,769 1,066 392,056
Securities sold 530,589 467,656 52,663 5,326
Interest and dividends 141,035 24,611 16,814 9,769
Variation margin (27,875) (27,300) (7,050) (121,740)
Receivable from Adviser 0 0 45,193 11,714
Prepaid expenses and other 5,860 2,251 2,244 3,194
------------ ------------ ------------ ------------
161,326,574 24,260,598 15,959,075 13,115,956
------------ ------------ ------------ ------------
LIABILITIES
Payables:
Investment securities purchased 261,895 221,895 42,527 0
Shares redeemed 81,970 0 0 0
Bank overdraft 0 0 0 0
Investment advisory fees 39,211 308 0 0
Custodian and fund accounting fees 12,788 8,541 10,583 7,006
Professional fees 10,994 11,141 12,509 10,701
Other accrued expenses 21,014 3,710 4,671 5,669
------------ ------------ ------------ ------------
427,872 245,595 70,290 23,376
------------ ------------ ------------ ------------
NET ASSETS
Paid-in capital 167,563,609 22,492,482 16,320,989 15,256,210
Undistributed net investment income 155,391 46,094 22,193 32,585
Accumulated net realized gain/(loss) on
investments and futures contracts (119,647) 235,314 32,009 80,831
Net unrealized appreciation/(depreciation)
on investments and futures contracts (6,700,651) 1,241,113 (486,406) (2,277,046)
------------ ------------ ------------ ------------
$160,898,702 $ 24,015,003 $ 15,888,785 $ 13,092,580
============ ============ ============ ============
Shares authorized ($.10) par value 20,000,000 20,000,000 20,000,000 20,000,000
Shares outstanding 16,762,886 2,241,523 1,480,564 1,321,577
Net assets value, offering and redemption
price per share $9.60 $10.71 $10.73 $9.91
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
22
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
LEHMAN
BALANCED AGGREGATE BOND EVEREST
INDEX FUND INDEX FUND FUND
------------- -------------- -------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at
value (cost $34,696,515;
$15,917,363; $47,496,392) $ 34,060,823 $ 16,129,815 $ 48,678,416
Cash 310 0 0
Receivables:
Shares sold 0 3,206 0
Securities sold 215 0 3,617,523
Interest and dividends 184,894 179,463 62,398
Variation margin (11,150) 0 0
Prepaid expenses and other 19,644 2,094 22,375
------------ ------------ ------------
34,254,736 16,314,578 52,380,712
------------ ------------ ------------
LIABILITIES
Payables:
Investment securities purchased 0 0 2,870,456
Shares redeemed 68,532 0 19,770
Bank overdraft 0 0 0
Investment advisory fees 16,782 1,326 28,224
Custodian and fund accounting
fees 9,943 9,200 6,522
Professional fees 11,038 10,586 10,176
Other accrued expenses 8,108 3,358 5,783
------------ ------------ ------------
114,403 24,470 2,940,931
------------ ------------ ------------
NET ASSETS
Paid-in capital 34,644,543 15,938,471 47,155,654
Undistributed net investment
income 127,727 130,964 108,377
Accumulated net realized
gain/(loss) on investments and
futures contracts 38,730 8,221 993,726
Net unrealized
appreciation/(depreciation) on
investment and futures
contracts (670,667) 212,452 1,182,024
------------ ------------ ------------
$ 34,140,333 $ 16,290,108 $ 49,439,781
============ ============ ============
Shares authorized ($.10) par value 20,000,000 20,000,000 20,000,000
Shares outstanding 3,458,646 1,593,904 4,816,990
Net assets value, offering and
redemption price per share $9.87 $10.22 $10.26
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
23
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHORT-TERM
BOND GOVERNMENT MONEY
FUND FUND MARKET FUND
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at
value (cost $69,310,023;
$10,057,835; $64,251,524) $ 68,776,390 $ 10,129,772 $ 64,251,524
Cash 18 0 0
Receivables:
Shares sold 0 0 122,793
Securities sold 878,938 0 0
Interest and dividends 1,154,513 129,537 154,233
Variation margin 0 0 0
Receivable from Adviser 0 4,522 0
Prepaid expenses and other 3,532 413 4,363
------------ ------------ ------------
70,813,391 10,264,244 64,532,913
------------ ------------ ------------
LIABILITIES
Payables:
Investment securities purchased 874,440 0 0
Shares redeemed 9,856 43,260 0
Bank overdraft 0 0 2,000
Investment advisory fees 27,686 0 12,784
Custodian and fund accounting
fees 9,916 8,224 11,243
Professional fees 9,988 10,209 10,407
Other accrued expenses 6,648 3,770 7,420
------------ ------------ ------------
938,534 65,463 43,854
------------ ------------ ------------
NET ASSETS
Paid-in capital 69,614,447 10,010,836 64,489,059
Undistributed net investment
income 672,743 73,758 0
Accumualted net realized
gain/(loss) on investment and
futures contracts 121,300 42,250 0
Net unrealized
appreciation/(depreciation) on
investments and futures
contracts (533,633) 71,937 0
------------ ------------ ------------
$ 69,874,857 $ 10,198,781 $ 64,489,059
============ ============ ============
Shares authorized ($.10) par value 20,000,000 20,000,000 150,000,000
Shares outstanding 6,957,855 1,001,122 64,489,059
Net assets value, offering and
redemption price per share $10.04 $10.19 $1.00
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
24
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P RUSSELL 2000
S&P 500 MIDCAP 400 SMALL CAP NASDAQ-100
INDEX FUND INDEX FUND INDEX FUND INDEX FUND
---------------------- ---------------------- ---------------------- ----------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 3, 2000 APRIL 3, 2000 DECEMBER 29, 1999 DECEMBER 28, 1999
TO TO TO TO
SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000
---------------------- ---------------------- ---------------------- ----------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 79,464 $ 62,093 $ 39,475 $ 103,331
Dividends (net of foreign
withholding taxes of
$8,614; $0; $14; $35) 896,195 101,150 98,356 1,316
----------- ---------- --------- -----------
975,659 163,243 137,831 104,647
----------- ---------- --------- -----------
EXPENSES
Investment advisory fees 239,156 29,469 26,844 21,484
Custodian fees and expenses 22,990 7,105 41,483 3,586
Fund accounting fees 21,759 16,789 33,849 19,608
Professional fees 11,892 11,376 12,720 10,888
Directors' fees 13,161 1,466 1,172 864
Transfer agent fees 6,074 6,074 7,202 7,211
Other 20,434 3,846 6,055 6,886
----------- ---------- --------- -----------
335,466 76,125 129,325 70,527
Expense reimbursements and
waivers (15,902) (18,760) (72,037) (32,792)
----------- ---------- --------- -----------
319,564 57,365 57,288 37,735
----------- ---------- --------- -----------
NET INVESTMENT INCOME 656,095 105,878 80,543 66,912
----------- ---------- --------- -----------
REALIZED AND UNREALIZED
GAIN / (LOSS)
Net realized gain / (loss)
on investments (121,672) (12,070) (53,976) (86,359)
Net realized gain / (loss)
on futures contracts and
options 2,025 247,384 85,985 167,190
----------- ---------- --------- -----------
(119,647) 235,314 32,009 80,831
----------- ---------- --------- -----------
Net change in unrealized
appreciation /
(depreciation) on
investments and futures
contracts (6,700,651) 1,241,113 (486,406) (2,277,046)
----------- ---------- --------- -----------
NET REALIZED AND UNREALIZED
GAIN / (LOSS) (6,820,298) 1,476,427 (454,397) (2,196,215)
----------- ---------- --------- -----------
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS $(6,164,203) $1,582,305 $(373,854) $(2,129,303)
=========== ========== ========= ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
25
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LEHMAN
BALANCED AGGREGATE BOND EVEREST
INDEX FUND INDEX FUND FUND
---------------------- ------------------- ----------------------
PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 3, 2000 APRIL 3, 2000 DECEMBER 29, 1999
TO TO TO
SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000
---------------------- ------------------- ----------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 528,913 $535,970 $ 81,507
Dividends (net of foreign
withholding taxes of $1,135,
$0, $0) 116,547 0 539,215
--------- -------- ----------
645,460 535,970 620,722
--------- -------- ----------
EXPENSES
Investment advisory fees 52,908 23,749 172,390
Custodian fees and expenses 7,709 1,856 8,019
Fund accounting fees 14,935 16,034 17,733
Professional fees 11,379 10,801 10,860
Directors' fees 2,573 1,164 4,464
Transfer agent fees 5,936 6,074 7,379
Other 8,709 3,367 5,803
--------- -------- ----------
104,149 63,045 226,648
Expense reimbursements and
waivers (2,106) (16,941) (10,581)
--------- -------- ----------
102,043 46,104 216,067
--------- -------- ----------
NET INVESTMENT INCOME 543,417 489,866 404,655
--------- -------- ----------
REALIZED AND UNREALIZED GAIN /
(LOSS)
Net realized gain / (loss) on
investments (2,528) 8,221 988,866
Net realized gain / (loss) on
futures contracts and options 41,258 0 4,860
--------- -------- ----------
38,730 8,221 993,726
--------- -------- ----------
Net change in unrealized
appreciation / (depreciation)
on investments and futures
contracts (670,667) 212,452 1,182,024
--------- -------- ----------
NET REALIZED AND UNREALIZED GAIN /
(LOSS) (631,937) 220,673 2,175,750
--------- -------- ----------
NET INCREASE / (DECREASE) IN NET
ASSETS FROM OPERATIONS $ (88,520) $710,539 $2,580,405
========= ======== ==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
26
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM
BOND GOVERNMENT MONEY
FUND FUND MARKET FUND
---------------------- ---------------------- ----------------------
PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 3, 2000 APRIL 3, 2000 JUNE 28, 2000
TO TO TO
SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000
---------------------- ---------------------- ----------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $2,685,254 $320,651 $1,156,079
Dividends (net of foreign
withholding taxes of $0, $0,
$0) 0 0 0
---------- -------- ----------
2,685,254 320,651 1,156,079
---------- -------- ----------
EXPENSES
Investment advisory fees 166,708 22,136 56,156
Custodian fees and expenses 7,695 1,093 3,420
Fund accounting fees 21,650 17,792 9,880
Professional fees 10,801 10,387 10,439
Directors' fees 5,704 765 1,840
Transfer agent fees 5,936 5,637 2,945
Other 6,516 2,966 7,370
---------- -------- ----------
225,010 60,776 92,050
Expense reimbursements and
waivers (6,843) (25,013) (14,562)
---------- -------- ----------
218,167 35,763 77,488
---------- -------- ----------
NET INVESTMENT INCOME 2,467,087 284,888 1,078,591
---------- -------- ----------
REALIZED AND UNREALIZED GAIN /
(LOSS)
Net realized gain / (loss) on
investments 121,300 42,250 157
Net realized gain / (loss) on
futures contracts and options 0 0 0
---------- -------- ----------
121,300 42,250 157
---------- -------- ----------
Net change in unrealized
appreciation / (depreciation)
on investments and futures
contracts (533,633) 71,937 0
---------- -------- ----------
NET REALIZED AND UNREALIZED GAIN /
(LOSS) (412,333) 114,187 157
---------- -------- ----------
NET INCREASE / (DECREASE) IN NET
ASSETS FROM OPERATIONS $2,054,754 $399,075 $1,078,748
========== ======== ==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
27
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P MIDCAP RUSSELL 2000
S&P 500 400 SMALL CAP NASDAQ-100
INDEX FUND INDEX FUND INDEX FUND INDEX FUND
------------------- ------------------- ------------------- -------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 3, 2000 APRIL 3, 2000 DECEMBER 29, 1999 DECEMBER 28, 1999
TO TO TO TO
SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 656,095 $ 105,878 $ 80,543 $ 66,912
Net realized gain /
(loss) on
investments and
futures (119,647) 235,314 32,009 80,831
Net change on
unrealized
appreciation /
(depreciation) on
investments and
futures contracts (6,700,651) 1,241,113 (486,406) (2,277,046)
------------ ----------- ----------- ------------
(6,164,203) 1,582,305 (373,854) (2,129,303)
------------ ----------- ----------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income (500,704) (59,784) (58,350) (34,327)
Net realized gain 0 0 0 0
------------ ----------- ----------- ------------
(500,704) (59,784) (58,350) (34,327)
------------ ----------- ----------- ------------
FUND SHARE TRANSACTIONS
Proceeds from shares
sold 10,454,654 5,562,284 17,184,666 26,109,106
Proceeds from shares
purchased in the
formation of the
Apex Series 164,731,938 18,434,630 -- --
Reinvestment of
distribution 500,704 59,784 58,350 34,327
Payments for shares
redeemed (8,123,687) (1,564,216) (922,027) (10,887,223)
------------ ----------- ----------- ------------
167,563,609 22,492,482 16,320,989 15,256,210
------------ ----------- ----------- ------------
NET INCREASE IN NET
ASSETS 160,898,702 24,015,003 15,888,785 13,092,580
NET ASSETS
Beginning of year 0 0 0 0
------------ ----------- ----------- ------------
End of year $160,898,702 $24,015,003 $15,888,785 $ 13,092,580
============ =========== =========== ============
UNDISTRIBUTED NET
INVESTMENT INCOME $ 155,391 $ 46,094 $ 22,193 $ 32,585
============ =========== =========== ============
FUND SHARE TRANSACTIONS
Sold 1,073,499 546,406 1,560,294 2,352,386
Shares purchased in the
formation of the
Apex Series 16,473,194 1,843,463 -- --
Reinvestment of
distribution 50,020 5,737 5,489 3,220
Redeemed (833,827) (154,083) (85,219) (1,034,029)
------------ ----------- ----------- ------------
Net increase from
fund share
transactions 16,762,886 2,241,523 1,480,564 1,321,577
============ =========== =========== ============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
28
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LEHMAN
AGGREGATE SHORT-TERM
BALANCED BOND EVEREST BOND GOVERNMENT
INDEX FUND INDEX FUND FUND FUND FUND
------------------- ------------------- ------------------- ------------------- -------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 3, 2000 APRIL 3, 2000 DECEMBER 29, 1999 APRIL 3, 2000 APRIL 3, 2000
TO TO TO TO TO
SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000 SEPTEMBER 30, 2000
------------------- ------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 543,417 $ 489,866 $ 404,655 $ 2,467,087 $ 284,888
Net realized gain /
(loss) on
investments and
futures 38,730 8,221 993,726 121,300 42,250
Net change on
unrealized
appreciation /
(depreciation) on
investments and
futures contracts (670,667) 212,452 1,182,024 (533,633) 71,937
------------ ----------- ------------ ----------- -----------
(88,520) 710,539 2,580,405 2,054,754 399,075
------------ ----------- ------------ ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income (415,690) (358,902) (296,278) (1,794,344) (211,130)
Net realized gain 0 0 0 0 0
------------ ----------- ------------ ----------- -----------
(415,690) (358,902) (296,278) (1,794,344) (211,130)
------------ ----------- ------------ ----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from shares
sold 3,116,510 1,526,247 4,662,421 3,128,659 1,254,252
Proceeds from shares
purchased in the
formation of the
Apex Series 35,685,686 15,428,869 54,900,222 70,654,226 9,782,057
Reinvestment of
distribution 415,690 358,902 296,278 1,794,344 211,130
Payments for shares
redeemed (4,573,343) (1,375,547) (12,703,267) (5,962,782) (1,236,603)
------------ ----------- ------------ ----------- -----------
34,644,543 15,938,471 47,155,654 69,614,447 10,010,836
------------ ----------- ------------ ----------- -----------
NET INCREASE IN NET
ASSETS 34,140,333 16,290,108 49,439,781 69,874,857 10,198,781
NET ASSETS
Beginning of year 0 0 0 0 0
------------ ----------- ------------ ----------- -----------
End of year $ 34,140,333 $16,290,108 $ 49,439,781 $69,874,857 $10,198,781
============ =========== ============ =========== ===========
UNDISTRIBUTED NET
INVESTMENT INCOME $ 127,727 $ 130,964 $ 108,377 $ 672,743 $ 73,758
============ =========== ============ =========== ===========
FUND SHARE TRANSACTIONS
Sold 310,805 151,878 489,820 311,765 124,399
Shares purchased in the
formation of the
Apex Series 3,568,569 1,542,887 5,567,974 7,065,423 978,206
Reinvestment of
distribution 41,280 35,774 29,305 180,701 20,990
Redeemed (462,008) (136,635) (1,270,109) (600,034) (122,473)
------------ ----------- ------------ ----------- -----------
Net increase from
fund share
transactions 3,458,646 1,593,904 4,816,990 6,957,855 1,001,122
============ =========== ============ =========== ===========
<CAPTION>
MONEY
MARKET
FUND
-------------------
PERIOD FROM
JUNE 28, 2000
TO
SEPTEMBER 30, 2000
-------------------
<S> <C>
OPERATIONS
Net investment income $ 1,078,591
Net realized gain /
(loss) on
investments and
futures 157
Net change on
unrealized
appreciation /
(depreciation) on
investments and
futures contracts 0
------------
1,078,748
------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income (1,078,591)
Net realized gain (157)
------------
(1,078,748)
------------
FUND SHARE TRANSACTIONS
Proceeds from shares
sold 21,638,403
Proceeds from shares
purchased in the
formation of the
Apex Series 65,628,407
Reinvestment of
distribution 1,078,748
Payments for shares
redeemed (23,856,499)
------------
64,489,059
------------
NET INCREASE IN NET
ASSETS 64,489,059
NET ASSETS
Beginning of year 0
------------
End of year $ 64,489,059
============
UNDISTRIBUTED NET
INVESTMENT INCOME $ 0
============
FUND SHARE TRANSACTIONS
Sold 21,638,403
Shares purchased in the
formation of the
Apex Series 65,628,407
Reinvestment of
distribution 1,078,748
Redeemed (23,856,499)
------------
Net increase from
fund share
transactions 64,489,059
============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
29
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS S&P 500 INDEX FUND
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
COMMON STOCKS - 98.14%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
BASIC INDUSTRIES - 1.86%
Air Products & Chemicals 2,835 $ 102,060
Alcan Aluminium Ltd. 2,709 78,392
Alcoa Inc. 10,834 274,236
Allegheny Technologies Inc. 1,043 18,904
Avery Dennison Corp. 1,393 64,600
Ball Corp. 374 11,851
Barrick Gold Corp. 4,961 75,655
Bemis Company 647 20,785
Bethlehem Steel* 1,621 4,863
Boise Cascade 707 18,780
Crown Cork & Seal 1,599 17,089
Dow Chemical 8,477 211,395
DuPont (E.I.) 13,132 544,157
Eastman Chemical 967 35,719
Engelhard Corp. 1,556 25,285
FMC Corp.* 378 25,350
Fort James Corp. 2,580 78,851
Freeport-McMoran Copper & Gold* 2,021 17,810
Georgia-Pacific Group 2,114 49,679
Goodrich (B.F.) 1,287 50,434
Grace (W.R.) & Co.* 887 6,098
Great Lakes Chemical 711 20,841
Hercules, Inc. 1,314 18,560
Homestake Mining 3,217 16,688
Inco, Ltd.* 2,278 36,733
International Paper 6,057 173,760
Louisiana Pacific 1,316 12,091
Mead Corp. 1,269 29,663
Millipore Corp. 560 27,125
Newmont Mining 2,072 35,224
Nucor Corp. 1,078 32,475
Owens-Illinois* 1,856 17,168
Pactiv Corporation* 2,118 23,695
Phelps Dodge 1,001 41,792
Placer Dome Inc. 4,107 38,760
Potlatch Corp. 358 11,322
PPG Industries 2,149 85,288
Praxair, Inc. 1,965 73,442
Rohm & Haas 2,706 78,643
Sealed Air Corp.* 1,032 46,698
Sherwin-Williams 2,051 43,840
Sigma-Aldrich 1,069 35,277
Springs Industries Inc. 221 6,229
Temple-Inland 690 26,134
Union Carbide 1,655 62,476
USX-U.S. Steel Group 1,093 16,600
Vulcan Materials 1,237 49,712
Westvaco Corp. 1,240 33,093
Weyerhaeuser Corp. 2,903 $ 117,209
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
BASIC INDUSTRIES - 1.86% (CONTINUED)
Willamette Industries 1,379 38,612
Worthington Ind. 1,103 10,341
--------------
2,991,484
--------------
CAPITAL GOODS - 9.14%
Allied Waste Industries* 2,335 21,453
Armstrong World 495 5,909
Boeing Company 11,375 716,625
Briggs & Stratton 284 10,739
Caterpillar Inc. 4,395 148,331
Cooper Industries 1,164 41,031
Corning Inc. 3,638 1,080,486
Crane Company 759 17,362
Cummins Engine Co., Inc. 512 15,328
Danaher Corp. 1,760 87,560
Deere & Co. 2,893 96,192
Dover Corp. 2,517 118,142
Emerson Electric 5,329 357,043
Fluor Corp. 940 28,200
General Dynamics 2,484 156,026
General Electric 124,000 7,153,247
Grainger (W.W.) Inc. 1,154 30,365
Honeywell International Inc. 10,008 356,535
Illinois Tool Works 3,781 211,263
Ingersoll-Rand 2,022 68,495
ITT Industries, Inc. 1,087 35,260
Lockheed Martin Corp. 5,366 176,863
Masco Corp. 5,626 104,784
Maxim Integrated Products* 3,544 285,071
McDermott International 736 8,096
Minnesota Mining & Manufacturing 4,933 449,520
Navistar International Corp.* 776 23,232
Northrop Grumman Corp. 859 78,062
PACCAR Inc. 968 35,877
Pall Corp. 1,533 30,564
Parker-Hannifin 1,386 46,778
PerkinElmer, Inc. 591 61,686
Pitney-Bowes 3,279 129,316
Raytheon Company 4,261 121,172
Rockwell International 2,346 70,967
Solectron Corp.* 7,476 344,831
Textron Inc. 1,839 84,824
Thermo Electron* 1,956 50,856
Thomas & Betts 715 12,468
Timken Co. 766 10,485
TRW Inc. 1,503 61,059
Tyco International 21,166 1,097,986
United Technologies 5,872 406,636
Waste Management 7,788 135,803
Xerox Corp. 8,354 $ 125,832
--------------
14,708,360
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
30
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
CONSUMER DURABLES - 1.15%
Black & Decker Corp. 1,074 36,717
Brunswick Corp. 1,135 20,714
Centex Corp. 734 23,580
Cooper Tire & Rubber 938 9,439
Dana Corp. 1,910 41,065
Delphi Automotive Systems 7,059 106,767
Eaton Corp. 910 56,079
Ford Motor 23,494 594,692
General Motors 6,708 436,020
Genuine Parts 2,198 41,899
Goodyear Tire & Rubber 1,933 34,794
Harley-Davidson 3,807 182,260
Johnson Controls 1,056 56,166
Kaufman & Broad Home Corp. 590 15,893
Leggett & Platt 2,427 38,377
Maytag Corp. 983 30,534
Pulte Corp. 535 17,655
Snap-On Inc. 723 17,036
Stanley Works 1,105 25,484
Visteon Corp. 1,630 24,654
Whirlpool Corp. 920 35,765
--------------
1,845,590
--------------
CONSUMER NON-DURABLES - 5.98%
Alberto-Culver 689 19,852
Anheuser-Busch 11,330 479,401
Archer-Daniels-Midland 7,881 67,976
Avon Products 2,995 122,421
Bestfoods* 3,448 250,842
Brown-Forman Corp. 847 46,373
Campbell Soup 5,272 136,413
Clorox Co. 2,924 115,681
Coca Cola Co. 31,035 1,710,800
Coca-Cola Enterprises 5,260 83,831
Colgate-Palmolive 7,202 339,934
ConAgra Foods Inc. 6,680 134,018
Coors (Adolph) 456 28,814
Eastman Kodak 3,902 159,494
Fortune Brands, Inc. 2,028 53,742
General Mills 3,655 129,753
Gillette Co. 13,089 404,123
Hasbro Inc. 2,173 24,854
Heinz (H.J.) 4,384 162,482
Hershey Foods 1,711 92,608
International Flavors & Fragrances 1,299 23,707
Kellogg Co. 5,085 122,993
Kimberly-Clark 6,967 388,846
Liz Claiborne, Inc. 731 28,144
Mattel, Inc. 5,338 $ 59,719
Nabisco Group Hldgs. 4,093 116,651
Newell Rubbermaid Inc. 3,342 76,239
NIKE Inc. 3,412 136,693
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
CONSUMER NON-DURABLES - 5.98%
(CONTINUED)
PepsiCo Inc. 18,069 831,174
Philip Morris 28,672 844,032
Polaroid Corp. 550 7,391
Procter & Gamble 16,399 1,098,733
Quaker Oats 1,654 130,873
Ralston-Ralston Purina Group 3,846 91,102
Reebok International* 696 13,094
Russell Corp. 409 6,493
Sara Lee Corp. 10,903 221,467
Seagram Co. Ltd. 5,472 314,298
Tupperware Corp. 713 12,834
Unilever N.V. 7,167 345,808
UST Inc. 2,034 46,528
V.F. Corp. 1,460 36,044
Wrigley (Wm) Jr. 1,431 107,146
--------------
9,623,421
--------------
CONSUMER SERVICES - 11.49%
Albertson's 5,312 111,552
America Online* 28,806 1,548,323
American Greetings Class A 798 13,965
AutoZone Inc.* 1,708 38,750
Bed Bath & Beyond* 3,470 84,635
Best Buy Co., Inc.* 2,527 160,780
Carnival Corp. 7,627 187,815
Cendant Corporation* 9,041 98,321
Circuit City Group 2,514 57,822
Clear Channel Communications* 7,341 414,767
Comcast Class A Special* 11,256 460,793
Consolidated Stores* 1,370 18,495
Convergys Corp.* 1,923 74,757
Costco Wholesale Corp.* 5,602 195,720
CVS Corp. 4,845 224,384
Darden Restaurants 1,584 32,967
Deluxe Corp. 907 18,423
Dillard Inc. 1,174 12,474
Dollar General 4,085 68,424
Donnelley (R.R.) & Sons 1,563 38,391
Dow Jones & Co. 1,110 67,155
Dun & Bradstreet Corp* 1,989 68,496
Ecolab Inc. 1,602 57,772
Federated Dept. Stores* 2,683 70,093
Gannett Co. 3,342 177,126
Gap (The) 10,669 214,714
Harcourt General Inc. 880 51,920
Harrah's Entertainment* 1,533 42,158
Hilton Hotels 4,618 53,396
Home Depot 29,009 $ 1,539,290
Interpublic Group 3,783 128,858
K mart* 6,019 36,114
Knight-Ridder Inc. 974 49,491
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
31
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS S&P 500 INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
CONSUMER SERVICES - 11.49% (CONTINUED)
Kohl's Corp.* 4,090 235,942
Kroger Co.* 10,470 236,229
Limited, Inc. 5,387 118,851
Longs Drug Stores 486 9,295
Lowe's Cos. 4,794 215,131
Marriott International 3,005 109,495
May Dept. Stores 4,169 85,465
McDonald's Corp. 16,739 505,309
McGraw-Hill 2,424 154,076
Meredith Corp. 636 18,762
National Service Ind. 503 9,840
New York Times Class A 2,117 83,225
Nordstrom 1,664 25,896
Office Depot* 3,965 30,977
Omnicom Group 2,194 160,025
Penney (J.C.) 3,273 38,662
Qwest Communication International* 20,469 983,791
RadioShack Corp. 2,390 154,454
Sabre Holdings Corporation* 1,601 46,329
Safeway Inc.* 6,224 290,583
Sears, Roebuck & Co. 4,421 143,329
Staples Inc.* 6,073 86,161
Starbucks Corp.* 2,301 92,184
Supervalu Inc. 1,648 24,823
Sysco Corp. 4,178 193,494
Target Corp. 11,436 293,048
Tiffany & Co. 1,818 70,107
Time Warner Inc. 16,498 1,290,969
TJX Companies Inc. 3,761 84,623
Toys R Us Holding Cos.* 2,711 44,054
Tribune Co. 3,867 168,698
TRICON Global Restaurants* 1,867 57,177
Viacom Inc.* 19,122 1,118,637
Walgreen Co. 12,637 479,416
Wal-Mart Stores 55,885 2,689,458
Walt Disney Co. 26,053 996,527
Wendy's International 1,426 28,609
Winn-Dixie 1,807 25,976
Yahoo! Inc.* 6,812 619,892
Young & Rubicam Inc.* 861 42,620
--------------
18,480,280
--------------
ENERGY - 5.74%
Amerada Hess 1,121 75,037
Anadarko Petroleum 2,993 198,915
Apache Corp. 1,410 83,366
Ashland Inc. 878 29,578
Baker Hughes 4,140 $ 153,698
Burlington Resources 2,689 98,989
Chevron Corp. 8,175 696,919
Conoco Inc 7,828 210,867
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
ENERGY - 5.74% (CONTINUED)
Devon Energy Corp. 1,607 96,661
Exxon Mobil Corp. 43,649 3,890,216
Halliburton Co. 5,566 272,386
Kerr-McGee 1,180 78,175
Occidental Petroleum 4,622 100,817
Phillips Petroleum 3,183 199,733
Rowan Cos.* 1,141 33,089
Royal Dutch Petroleum 26,887 1,611,540
Schlumberger Ltd. 7,135 587,300
Sunoco Inc. 1,115 30,035
Texaco Inc. 6,922 363,405
Tosco Corp. 1,779 55,483
Transocean Sedco Forex Inc. 2,639 154,711
Unocal Corp. 2,997 106,206
USX-Marathon Group 3,909 110,918
--------------
9,238,044
--------------
FINANCE - 15.43%
AFLAC Inc. 3,290 210,766
Allstate Corp. 9,337 324,461
American Express 16,751 1,017,623
American General 3,115 242,970
American Int'l. Group 28,990 2,773,981
AmSouth Bancorporation 4,926 61,575
Aon Corp. 3,173 124,540
Associates First Capital 9,133 347,054
Bank of America Corp. 20,780 1,088,353
Bank of New York 9,248 518,466
Bank One Corp. 14,380 555,428
BB&T Corporation 4,370 131,646
Bear Stearns Cos. 1,402 88,326
Block H&R 1,216 45,068
Capital One Financial 2,438 170,812
Charles Schwab 17,074 606,127
Charter One Financial 2,730 66,544
Chase Manhattan 16,500 762,094
Chubb Corp. 2,175 172,097
CIGNA Corp. 2,084 217,570
Cincinnati Financial 2,029 72,030
CIT Group Inc. 3,035 53,113
Citigroup Inc. 56,420 3,050,200
Comerica Inc. 1,933 112,960
Conseco Inc. 4,044 30,836
Countrywide Credit Industries 1,401 52,888
Fannie Mae 12,671 905,977
Federal Home Loan Mtg. 8,717 471,263
Fifth Third Bancorp 5,826 313,876
First Union Corp. 12,295 395,745
Firstar Corporation 12,117 $ 271,118
FleetBoston Financial Corp. 11,318 441,402
Franklin Resources Inc. 3,074 136,578
Golden West Financial 1,998 107,143
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
32
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
FINANCE - 15.43% (CONTINUED)
Hartford Financial Services Group 2,740 199,849
Household International 5,933 335,956
Huntington Bancshares 3,113 45,722
Jefferson-Pilot 1,295 87,898
KeyCorp 5,452 138,004
Lehman Brothers Holdings 1,484 219,261
Lincoln National 2,416 116,270
Loews Corp. 1,237 103,135
Marsh & McLennan 3,380 448,695
MBIA Inc. 1,231 87,555
MBNA Corp. 10,850 417,725
Mellon Financial Corp. 6,159 285,624
Merrill Lynch 9,726 641,916
MGIC Investment 1,307 79,890
Morgan (J.P.) & Co. 2,036 332,632
Morgan Stanley, Dean Witter & Co. 14,192 1,297,681
National City Corp. 7,622 168,637
Northern Trust Corp. 2,752 244,584
Old Kent Financial 1,719 49,744
PaineWebber Group 1,826 124,396
PNC Financial Services Group 3,635 236,275
Progressive Corp. 904 74,015
Providian Financial Corp. 1,755 222,885
Regions Financial Corp. 2,767 62,776
SAFECO Corp. 1,607 43,791
SouthTrust Corp. 2,074 65,201
St. Paul Cos. 2,659 131,122
State Street Corp. 1,978 257,140
Stilwell Financial 2,732 118,842
Summit Bancorp 2,161 74,555
SunTrust Banks 3,792 188,889
Synovus Financial 3,541 75,025
T. Rowe Price Associates 1,479 69,421
Torchmark Corp. 1,626 45,223
U.S. Bancorp 9,427 214,464
Union Planters 1,743 57,628
UNUMProvident Corp. 2,967 80,851
USA Education Inc. 1,967 94,785
Wachovia Corp. 2,506 142,059
Washington Mutual, Inc. 6,868 273,432
Wells Fargo & Co. 20,203 928,075
--------------
24,822,258
--------------
HEALTH CARE - 11.31%
Abbott Labs 19,428 924,044
Aetna Inc. 1,768 102,655
Allergan, Inc. 1,626 137,295
ALZA Corp. Class A* 1,262 109,163
American Home Products 16,353 $ 924,967
Amgen* 12,874 898,967
Bard (C.R.) Inc. 633 26,744
Bausch & Lomb 713 27,762
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
HEALTH CARE - 11.31% (CONTINUED)
Baxter International Inc. 3,597 287,086
Becton, Dickinson 3,165 83,675
Biogen, Inc.* 1,857 113,277
Biomet, Inc. 2,224 77,840
Boston Scientific* 5,127 84,275
Bristol-Myers Squibb 24,734 1,412,930
Cardinal Health, Inc. 3,477 306,628
Guidant Corp.* 3,800 268,613
HCA-The Healthcare Co. 6,963 258,501
HCR Manor Care* 1,274 19,986
Healthsouth Corp.* 4,833 39,268
Humana Inc.* 2,071 22,263
IMS Health Inc. 3,727 77,335
Johnson & Johnson 17,440 1,638,270
Lilly (Eli) & Co. 14,161 1,148,811
Mallinckrodt Inc. 848 38,690
McKesson HBOC Inc. 3,533 107,977
MedImmune Inc.* 2,616 202,086
Medtronic Inc. 15,008 777,602
Merck & Co. 28,832 2,146,182
Pfizer, Inc. 78,926 3,546,737
Pharmacia Corp. 15,916 957,944
Quintiles Transnational* 1,421 22,647
Schering-Plough 18,358 853,647
St Jude Medical* 1,040 53,040
Tenet Healthcare Corp.* 3,922 142,663
United Health Group Inc. 2,036 201,055
Watson Pharmaceuticals* 1,187 77,007
WellPoint Health Networks* 787 75,552
--------------
18,193,184
--------------
PUBLIC UTILITIES - 8.56%
AES Corp.* 5,728 392,368
ALLTEL Corp. 3,953 206,297
Ameren Corp. 1,696 71,020
American Electric Power 4,034 157,844
AT&T Corp. 46,688 1,371,460
BellSouth 23,592 949,578
CenturyTel, Inc. 1,727 47,061
CINergy Corp. 1,965 64,968
CMS Energy 1,376 37,066
Coastal Corp. 2,641 195,764
Columbia Energy Group 1,005 71,355
Consolidated Edison Hldgs. 2,658 90,704
Constellation Energy Group 1,849 91,988
CP&L Energy Inc. 1,973 82,249
Dominion Resources 2,942 170,820
DTE Energy Co. 1,793 68,582
Duke Energy 4,608 $ 395,136
Eastern Enterprises 334 21,313
Edison Int'l 4,167 80,475
El Paso Energy 2,900 178,713
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
33
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS S&P 500 INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
PUBLIC UTILITIES - 8.56% (CONTINUED)
Enron Corp. 9,179 804,310
Entergy Corp. 2,884 107,429
FirstEnergy Corp. 2,881 77,607
Florida Progress 1,214 64,266
FPL Group 2,216 145,702
GPU Inc. 1,526 49,500
KeySpan Corp. 1,676 67,250
NEXTEL Communications* 9,509 444,546
Niagara Mohawk Hldgs Inc.* 2,193 34,540
NICOR Inc. 582 21,061
ONEOK Inc. 382 15,185
PECO Energy Co. 2,126 128,756
Peoples Energy 439 14,652
PG&E Corp. 4,832 116,874
Pinnacle West Capital 1,048 53,317
PPL Corporation 1,776 74,148
Public Serv. Enterprise Inc. 2,702 120,746
Reliant Energy 3,707 172,376
SBC Communications Inc. 42,653 2,132,649
Sempra Energy 2,526 52,572
Southern Co. 8,133 263,814
Sprint Corp. FON Group 10,992 322,203
Sprint Corp. PCS Group* 11,476 402,377
TXU Corp. 3,307 131,040
Unicom Corp. 2,229 125,242
Verizon Communications 34,108 1,652,106
Williams Cos. 5,539 234,023
WorldCom Inc.* 35,899 1,090,432
Xcel Energy Inc. 4,183 115,033
--------------
13,778,517
--------------
TECHNOLOGY - 26.95%
Adaptec, Inc.* 1,285 25,700
ADC Telecommunications* 8,462 227,548
Adobe Systems 1,465 227,441
Advanced Micro Devices* 3,842 90,767
Agilent Technologies* 5,668 277,378
Altera Corp.* 4,932 235,503
American Power Conversion* 2,431 46,645
Analog Devices* 4,436 366,247
Andrew Corp.* 996 26,083
Apple Computer* 4,081 105,086
Applied Materials* 10,126 600,598
Autodesk, Inc. 762 19,336
Automatic Data Processing Inc. 7,864 525,905
BMC Software* 3,019 57,738
Broadcom Corporation* 2,850 694,688
Cabletron Systems* 2,253 66,182
Ceridian Corp.* 1,788 $ 50,176
Cisco Systems* 88,500 4,889,622
Citrix Systems* 2,321 46,565
COMPAQ Computer 21,291 587,206
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
TECHNOLOGY - 26.95% (CONTINUED)
Computer Associates International 7,378 185,833
Computer Sciences Corp.* 2,069 153,623
Compuware Corp.* 4,520 37,855
Comverse Technology* 1,888 203,904
Conexant Systems* 2,725 114,109
Dell Computer* 32,287 994,843
Electronic Data Systems 5,820 241,530
EMC Corp.* 27,208 2,696,993
Equifax Inc. 1,748 47,087
First Data 5,181 202,383
Gateway, Inc.* 4,035 188,636
Global Crossing* 11,058 342,798
Hewlett-Packard 12,540 1,216,380
Intel Corp. 83,984 3,490,585
International Business Machines 22,000 2,475,000
JDS Uniphase Corp.* 11,700 1,107,844
KLA-Tencor Corp.* 2,332 96,049
Lexmark International Inc.* 1,579 59,213
Linear Technology Corp. 3,901 252,590
LSI Logic* 3,849 112,583
Lucent Technologies 42,000 1,283,625
Mercury Interactive* 997 156,280
Micron Technology* 6,957 320,022
Microsoft Corp.* 66,000 3,980,625
Molex Inc. 2,424 131,957
Motorola Inc. 26,987 762,383
National Semiconductor* 2,214 89,114
NCR Corp.* 1,194 45,148
Network Appliance* 3,819 486,445
Nortel Networks Corp. Hldg. Co. 37,143 2,212,330
Novell Inc.* 4,131 41,052
Novellus Systems* 1,638 76,269
Oracle Corp.* 35,300 2,779,875
Palm Inc.* 7,063 373,904
Parametric Technology* 3,461 37,855
Paychex Inc. 4,656 244,440
PE Corp.-PE Biosystems Group 2,612 304,298
PeopleSoft Inc.* 3,460 96,664
QUALCOMM Inc.* 9,292 662,055
Sanmina Corp.* 1,859 174,049
Sapient Corp.* 1,400 56,963
Scientific-Atlanta 1,955 124,387
Seagate Technology* 2,849 196,581
Siebel Systems, Inc.* 5,100 567,694
Sun Microsystems* 19,892 2,322,391
Tektronix Inc. 584 44,859
Tellabs, Inc.* 5,135 245,196
Teradyne, Inc.* 2,172 $ 76,020
Texas Instruments 21,610 1,019,722
Unisys Corp.* 3,909 43,976
Veritas Software* 4,901 695,942
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
34
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
S&P 500 INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
TECHNOLOGY - 26.95% (CONTINUED)
Xilinx, Inc.* 4,029 344,983
--------------
43,383,356
--------------
TRANSPORTATION - .53%
AMR Corp.* 1,831 59,851
Burlington Northern Santa Fe Corp. 5,370 115,791
CSX Corp. 2,699 58,872
Delta Air Lines 1,536 68,160
FedEx Corporation* 3,636 161,219
Norfolk Southern Corp. 4,804 70,259
Ryder System 734 13,533
Southwest Airlines 6,236 151,223
Union Pacific 3,073 119,463
USAirways Group Inc.* 883 26,876
--------------
845,247
--------------
Total Common Stocks
(cost $164,524,596) 157,909,741
--------------
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
UNIT INVESTMENT TRUST - .73%
S&P 500 Depositary Receipts 8,139 $ 1,168,964
--------------
Total Unit Investment Trust
(cost $1,167,322) 1,168,964
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
SHORT-TERM INVESTMENTS(3) - .98%
VARIABLE RATE DEMAND NOTES(1) - .80%
Firstar Bank (6.37% due 12/31/31) $ 1,290,123 1,290,123
--------------
U.S. TREASURY BILL - .18%
U.S. Treasury Bill (due 12/21/00) 300,000 295,967
--------------
Total Short-Term Investments
(cost $1,586,090) 1,586,090
--------------
TOTAL INVESTMENTS - 99.85%
(cost $167,278,008)(2) 160,664,795
--------------
OTHER ASSETS AND LIABILITIES - .15% 233,907
--------------
TOTAL NET ASSETS - 100% $ 160,898,702
==============
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
(2) Represents cost for income tax purposes which is substantially the same for
financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of September 30, 2000 was $17,299,985 and
($23,913,198), respectively.
(3) Securities and other current assets with an aggregate value of $1,817,125
have been segregated with the custodian or designated to cover margin
requirements for the open futures contracts as of September 30, 2000:
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
<S> <C> <C>
-------------------------------------------------------------------
S&P 500 Index (12/00) 5 $(87,438)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
35
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS S&P MIDCAP 400 INDEX FUND
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
COMMON STOCKS - 81.25%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
BASIC INDUSTRIES - 3.51%
Airgas Inc.* 1,328 $ 9,047
AK Steel Hldg. Corp. 2,197 20,597
Albemarle Corp. 921 18,593
Bowater Inc. 1,005 46,670
Cabot Corp. 1,348 42,715
Cabot Microelectronics Co.* 505 24,135
Carpenter Technology 440 12,815
Cleveland-Cliffs Inc. 204 4,667
Crompton Corporation 2,290 18,034
Cytec Industries* 831 27,787
Ferro Corp. 697 13,287
Fuller (H.B.) Co. 283 8,136
Georgia Gulf 630 7,206
Harsco Corp. 803 17,716
Incyte Genomics Inc 2,303 33,394
Kaydon Corp. 606 13,938
Kennametal Inc. 612 15,759
Longview Fibre 1,039 12,468
Lubrizol Corp. 1,080 21,263
Lyondell Chemical Co. 2,364 27,925
Martin Marietta Materials 940 35,983
MAXXAM Inc.* 111 2,206
Minerals Technologies 401 18,446
NCH Corp. 100 3,531
Olin Corp. 908 14,698
P.H. Glatfelter Co. 851 10,318
Pentair Corp. 975 26,081
Precision Castparts 990 37,991
Rayonier Inc. 545 19,586
RPM Inc. 2,116 19,176
Ryerson Tull, Inc. 498 4,700
Schulman (A.), Inc. 604 6,644
Sequa Corporation* 198 8,415
Solutia Inc. 2,134 24,274
Sonoco Products 2,000 36,125
Southdown 722 51,440
Stora Enso Oyj* 1 7
The Timber Co. 1,621 43,564
Unifi, Inc.* 1,144 11,655
USG Corp. 891 22,331
Valspar Corp. 859 19,748
Wausau-Mosinee Paper 1,034 8,014
Wellman, Inc. 616 8,894
Westpoint Stevens 994 12,177
--------------
842,156
--------------
CAPTIAL GOODS - 3.71%
AGCO Corp. 1,198 14,226
Albany International* 615 7,380
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CAPTIAL GOODS - 3.71% (CONTINUED)
American Standard Cos.* 1,412 $ 62,746
Ametek, Inc. 643 13,624
Avnet, Inc 1,774 50,337
Carlisle Companies 608 25,232
Donaldson Co. 923 20,306
Federal Signal 911 18,106
Flowserve Corp.* 753 12,377
Granite Construction 547 13,265
Grant Prideco* 2,180 47,824
HON Industries 1,210 29,796
Hubbell Inc. 1,216 30,476
Jacobs Engineering Group* 527 21,245
Litton Industries* 916 40,934
MagneTek, Inc.* 468 4,973
Miller (Herman) 1,582 50,723
Newport News Shipbuilding 609 26,415
Nordson Corporation 647 18,399
Ogden Corp.* 998 13,535
Pittston Brink's Group 1,041 16,136
Reynolds & Reynolds 1,540 30,608
Standard Register Co. 549 8,784
Stewart & Stevenson Services 563 9,817
Tecumseh Products Co. 391 16,373
Trinity Industries 758 17,718
UCAR International* 907 11,508
Wallace Computer Services 811 12,368
Waters Corporation* 2,546 226,593
York International 765 19,029
--------------
890,853
--------------
CONSUMER DURABLES - 2.13%
ArvinMeritor Inc. 1,423 20,900
Bandag Inc. 406 14,591
Borg-Warner Automotive 505 16,728
Buffets Inc.* 836 11,495
Callaway Golf Co. 1,512 23,247
Clayton Homes 2,775 27,750
Federal-Mogul 1,418 7,710
Furniture Brands International* 993 16,509
GTECH Holdings Corp.* 700 11,594
Hillenbrand Industries 1,261 56,430
International Game Technology* 1,451 48,790
Lear Corporation* 1,330 27,348
Lennar Corp. 1,235 36,664
Modine Mfg. 590 16,621
Mohawk Industries* 1,055 23,012
Shaw Industries 2,537 46,935
SPX Corp.* 633 89,846
Superior Industries 525 15,750
--------------
511,920
--------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
36
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
S&P MIDCAP 400 INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLES - 3.59%
Blyth Inc.* 967 $ 22,664
Carter-Wallace 905 22,116
Church & Dwight 766 14,075
Cintas Corporation 3,368 146,717
Dean Foods 722 24,007
Dial Corp. 1,874 21,785
Dole Foods 1,123 16,845
Dreyer's Grand Ice Cream 565 12,183
Energizer Holdings Inc.* 1,915 46,918
Flowers Industries 2,011 39,215
Gartner Group Inc* 1,720 18,705
Hormel Foods Corp. 2,810 46,892
IBP, Inc. 2,129 38,987
International Multifoods Corp. 377 6,550
Interstate Bakeries 1,327 19,407
Jones Apparel Group* 2,382 63,123
Lancaster Colony 788 19,355
Lance, Inc. 582 5,656
McCormick & Co. 1,381 41,085
Perrigo Co.* 1,475 10,095
RJ Reynolds Tobacco Hldgs. 2,043 65,887
Smucker (J.M.)* 482 11,719
Suiza Foods Corp.* 584 29,602
Tyson Foods 4,534 45,340
Universal Corp. 566 16,626
Universal Foods 999 20,355
Warnaco Group 1,071 4,284
Whitman Corp. 2,741 31,693
--------------
861,886
--------------
CONSUMER SERVICES - 9.74%
Abercrombie & Fitch Co.* 2,019 38,487
ACNielsen* 1,159 27,599
American Eagle Outfitters* 938 29,547
Apollo Group* 1,514 60,371
Banta Corp. 507 12,358
Barnes & Noble* 1,285 25,298
Belo (A.H.) Corp. 2,359 43,494
BJ's Wholesale Club* 1,479 50,471
Bob Evans Farms 711 13,154
Borders Group* 1,563 21,784
Brinker International* 1,312 39,524
CBRL Group, Inc. 1,143 16,431
CDW Computer Centers* 1,748 120,612
Chris-Craft Industries* 701 57,745
Claire's Stores 1,030 18,540
DeVRY Inc.* 1,399 52,637
Dollar Tree Stores* 2,152 87,291
Family Dollar Stores 3,441 66,239
Fastenal Company 763 43,968
Galileo International 1,795 27,823
Harte-Hanks, Inc. 1,374 37,442
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER SERVICES - 9.74% (CONTINUED)
Hispanic Broadcasting 'A'* 2,188 $ 60,991
Houghton Mifflin 635 24,924
International Speedway 1,068 41,652
Kelly Services 718 16,963
Lands' End* 606 12,726
Lee Enterprises 888 25,641
Lone Star Steakhouse 530 3,909
Mandalay Resort Group* 1,565 40,103
Manpower Inc. 1,527 48,769
Media General Inc. 493 21,199
Modis Professional Svc.* 1,939 10,059
Navigant Consulting Co.* 831 2,857
NCO Group Inc.* 515 6,116
Neiman-Marcus Group Inc.* 951 30,848
NOVA Corp.* 1,399 23,958
OfficeMax Inc.* 2,267 8,076
Outback Steakhouse* 1,568 42,532
Papa John's International* 485 12,155
Park Place Entertainment* 6,016 90,992
Payless ShoeSource Inc. Holding Co.* 457 25,592
Quanta Services* 1,297 35,668
Readers Digest Assoc. 2,116 74,721
Robert Half International* 3,571 123,869
Rollins, Inc. 604 8,947
Ross Stores 1,662 23,891
Ruddick Corp. 929 12,890
Saks Incorporated* 2,832 27,966
Scholastic Corp.* 340 27,051
Six Flags* 1,582 24,521
Sotheby's Holdings* 1,184 29,452
Sylvan Learning Systems* 749 11,095
Tech Data Corp.* 1,049 44,845
United Rentals Inc* 1,489 35,922
Univision Communications* 4,132 154,428
Valassis Communication* 1,102 24,520
Viad Corp. 1,884 50,044
Washington Post 191 100,824
Westwood One Inc.* 2,258 48,406
Williams-Sonoma Inc.* 1,134 39,407
--------------
2,339,344
--------------
ENERGY - 6.92%
BJ Services* 1,668 101,957
Cooper Cameron Corp.* 1,070 78,846
Dynegy Inc. 6,204 353,626
ENSCO International 2,773 106,067
Global Marine* 3,521 108,711
Hanover Compressor Holding Co.* 1,162 38,273
Helmerich & Payne 1,000 36,125
Murphy Oil 905 58,655
Nabors Industries* 2,929 153,480
Noble Affiliates 1,120 41,580
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
37
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS S&P MIDCAP 400 INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
ENERGY - 6.92% (CONTINUED)
Noble Drilling Corp.* 2,686 $ 134,972
Ocean Energy Inc.* 3,368 51,994
Pennzoil-Quaker State 1,576 16,548
Pioneer Natural Resources* 2,003 28,418
Smith International* 1,013 82,623
Tidewater Inc. 1,116 50,778
Ultramar Diamond Shamrock 1,745 44,279
Valero Energy 1,233 43,386
Varco International* 1,841 38,316
Weatherford International Inc.* 2,182 93,826
--------------
1,662,460
--------------
FINANCE - 9.59%
Affiliated Computer Svcs.* 996 49,676
Allmerica Financial 1,079 68,989
Ambac Financial Group 1,404 102,843
American Financial Group Hldg. 1,177 27,292
Associated Banc-Corp 1,391 36,514
Astoria Financial 1,033 39,900
Banknorth Group Inc. 2,897 51,784
City National Corp. 955 36,887
Comdisco, Inc. 3,062 58,369
Compass Bancshares 2,426 47,307
Dime Bancorp Inc. 2,190 47,222
E*Trade Group* 6,009 98,773
Edwards (A.G.), Inc. 1,658 86,734
Everest Re Group 921 45,590
FINOVA Group Inc. 1,233 8,939
First Security Corp. 3,949 64,418
First Tennessee National 2,614 53,424
First Virginia Banks 954 40,664
FirstMerit Corp. 1,778 40,783
GATX Corp. 959 40,158
Greater Bay Bancorp 425 29,511
Greenpoint Financial Corp. 2,043 60,524
Hibernia Corp. 3,212 39,347
Horace Mann Educators 822 13,460
HSB Group Inc. 581 23,313
Investment Technology Group* 623 24,881
Keystone Financial Inc. 984 21,402
Legg Mason 1,222 71,029
Marshall & Ilsley Corp. 2,092 104,858
Mercantile Bankshares 1,409 51,142
National Commerce Bancorp 4,085 81,445
North Fork Bancorp. 3,494 75,558
Ohio Casualty 1,208 7,663
Old Republic Int'l 2,350 56,547
Pacific Century Financial Corp. 1,596 27,332
PMI Group 886 60,027
Protective Life Corp. 1,298 38,778
Provident Financial Group Inc. 980 28,788
Roslyn Bancorp 1,292 28,909
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCE - 9.59% (CONTINUED)
Sovereign Bancorp 4,541 $ 42,004
TCF Financial 1,626 61,178
The MONY Group 925 36,884
Unitrin, Inc. 1,388 43,982
Waddell & Reed Financial 1,651 51,181
Webster Financial Corp. 1,068 28,769
Westamerica Bancorp 729 24,376
Wilmington Trust Corp. 648 34,749
Zions Bancorp 1,723 88,115
--------------
2,302,018
--------------
HEALTH CARE - 10.84%
Acuson Corp.* 556 12,649
Apria Healthcare Group* 1,052 14,662
Beckman Coulter Inc. 590 45,504
Bergen Brunswig 2,705 31,615
Chiron Corp.* 3,662 164,790
Covance Inc.* 1,150 9,416
Dentsply Int'l 1,044 36,475
Edwards Lifesciences Corp.* 1,168 25,477
Express Scripts 'A'* 761 54,982
First Health Group Inc.* 960 30,960
Forest Laboratories* 1,749 200,588
Foundation Health Sys Inc.* 2,459 40,881
Genzyme Corp.* 1,705 116,260
Gilead Sciences* 936 102,668
Health Management Associates* 4,865 101,253
ICN Pharmaceuticals 1,598 53,134
IDEC Pharmaceuticals* 893 156,596
Incyte Genomics Inc* 1,280 52,640
IVAX Corp.* 3,178 146,188
Lincare Holdings* 1,071 30,724
Millennium Pharmaceuticals* 1,880 274,594
MiniMed Inc.* 1,276 114,043
Mylan Laboratories 2,499 67,317
Omnicare, Inc. 1,853 29,880
Oxford Health Plans* 1,652 50,773
PacifiCare Health Sys* 699 24,334
PSS World Medical Inc.* 1,428 5,177
Quest Diagnostics* 893 102,472
Quorom Health Group* 1,432 18,616
Sepracor Inc.* 1,466 179,860
STERIS Corp.* 1,357 16,284
Stryker Corp. 3,919 168,272
Sybron International* 2,102 50,448
Trigon Healthcare Inc.* 754 39,632
VISX Inc.* 1,221 32,891
--------------
2,602,055
--------------
PUBLIC UTILITIES - 9.08%
AGL Resources Ltd. 1,092 21,908
Allegheny Energy Inc. 2,221 84,814
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
38
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
S&P MIDCAP 400 INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
PUBLIC UTILITIES - 9.08% (CONTINUED)
Allete 1,488 $ 32,922
Alliant Energy 1,589 46,677
American Water Works 1,966 54,188
Black Hills 459 12,881
BroadWing Inc.* 4,294 109,765
Calpine Corp.* 2,740 285,985
Cleco Corp. Hldg. Co. 450 21,038
Conectiv 1,779 31,800
DPL Incorporated 2,657 79,046
DQE, Inc. 1,171 46,986
Energy East 2,617 59,210
Hawaiian Electric Industries 650 22,669
IDACORP Inc. Hldg. Co. 756 34,965
IPALCO Enterprises 1,724 39,437
Kansas City Power & Light 1,245 33,226
Kinder Morgan, Inc. 2,296 93,993
LG&E Energy 2,608 63,733
MCN Energy Group Inc. 1,808 46,330
Montana Power 2,123 70,855
National Fuel Gas 788 44,177
NiSource Inc. 2,435 59,353
Northeast Utilities 2,987 64,781
NSTAR 1,080 43,470
OGE Energy Corp. 1,566 33,375
Potomac Electric Power 2,273 57,251
Public Service of New Mexico 795 20,571
Puget Sound Energy, Inc. 1,714 43,493
Questar Corp. 1,609 44,750
SCANA Corp. 2,106 65,023
Sierra Pacific Resources 1,577 28,386
TECO Energy 2,519 72,421
Telephone & Data Systems 1,217 134,722
UtiliCorp United 1,882 48,697
Vectren Corporation 1,233 25,045
Washington Gas Light 935 25,128
Western Resources 1,390 30,059
Wisconsin Energy 2,422 48,289
--------------
2,181,419
--------------
TECHNOLOGY - 21.27%
3Com Corp.* 7,082 135,886
Acxiom Corp.* 1,741 55,277
Adtran Inc.* 778 33,101
ANTEC Corporation* 758 22,361
Arrow Electronics* 1,941 66,115
Atmel Corp.* 9,238 140,302
Avocent Corp.* 853 47,022
Cadence Design Systems* 4,940 126,896
Cambridge Technology Partners* 1,255 5,491
Checkfree Corp.* 1,515 63,464
Cirrus Logic* 1,327 53,495
CommScope, Inc.* 1,026 25,137
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 21.27% (CONTINUED)
Concord EFS Inc.* 4,269 $ 151,616
Credence Systems* 1,032 30,960
CSG Systems International* 1,049 30,421
Cypress Semiconductor* 2,402 99,833
Diebold, Inc. 1,431 38,011
DSP Group* 534 19,958
DST Systems Inc.* 1,262 148,285
Electronic Arts* 2,584 127,585
FIserv Inc.* 2,470 147,891
Harris Corp. 1,391 39,557
Imation Corp.* 719 13,391
InFocus Corp.* 756 40,068
Informix Corp.* 5,690 23,471
Integrated Devices Tech* 2,068 187,154
International Rectifier* 1,231 62,242
Intuit, Inc.* 4,056 231,192
Jabil Circuit* 3,815 216,501
Keane Inc.* 1,412 24,569
L-3 Communications Holdings* 662 37,403
Lattice Semiconductor* 991 53,266
Legato Systems Inc.* 1,745 23,448
Macromedia Inc.* 1,054 85,176
MarchFirst Inc.* 3,010 47,219
Mentor Graphics* 1,271 29,948
Micrel Inc.* 1,688 113,096
Microchip Technology* 2,358 77,961
Mynd Corporation* 716 9,666
Network Associates Inc.* 2,789 63,101
NVIDIA Corp.* 1,291 105,701
Polycom Inc.* 1,422 95,230
Powerwave Technologies* 1,233 46,815
QLogic Corp.* 1,778 156,464
Quantum Corp.-DSSG Stock* 2,985 44,962
Rational Software* 3,740 259,463
Retek Inc.* 990 52,470
Sawtek Inc.* 855 32,931
SCI Systems Inc.* 2,913 119,433
SEI Corp. 1,066 75,420
Semtech Corp.* 1,312 56,580
Sensormatic Electronics* 1,549 23,235
Storage Technology* 2,025 27,464
Structural Dynamics Research* 724 11,856
SunGard Data Systems* 2,645 113,239
Sybase Inc.* 1,804 41,492
Sykes Enterprises* 829 4,456
Symantec Corp.* 1,194 52,536
Symbol Technologies 2,748 98,756
Synopsys Inc.* 1,410 53,404
Teleflex 767 26,366
Titan Corp.* 1,077 17,771
Transaction Systems Architects* 663 10,774
TranSwitch Corp.* 1,618 $ 103,148
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
39
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS S&P MIDCAP 400 INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 21.27% (CONTINUED)
TriQuint Semiconductor* 1,544 56,260
Vishay Intertechnology* 2,765 85,024
Vitesse Semiconductor* 3,599 320,088
Wind River Systems* 1,451 69,557
--------------
5,108,431
--------------
TRANSPORTATION - .87%
Airborne Freight 986 10,045
Alaska Air Group* 532 12,768
Alexander & Baldwin 836 21,736
Arnold Ind. 494 8,336
Atlas Air* 764 32,279
C.H. Robinson Worldwide 858 48,357
CNF Transportation Inc. 976 21,716
Hunt(J.B.) Transport Services Inc. 712 9,078
Overseas Shipholding Group 681 18,642
Swift Transportation* 1,268 16,563
Wisconsin Central Transportation* 995 10,510
--------------
210,030
--------------
Total Common Stocks
(cost $18,263,920) 19,512,572
--------------
UNIT INVESTMENT TRUST - 3.40%
S&P Mid-Cap 400 Depositary Receipts 8,318 817,243
--------------
Total Unit Investment Trust
(cost $778,232) 817,243
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
------------------
SHORT-TERM INVESTMENTS(3) - 14.05%
VARIABLE RATE DEMAND NOTES(1) - 11.05%
American Family (6.2352% due 12/31/31) $ 828,003 $ 828,003
Firstar Bank (6.37% due 12/31/31) 808,548 808,548
Sara Lee (6.22% due 12/31/31) 772,173 772,173
Wisconsin Electric (6.2352% due
12/31/31) 244,886 244,886
--------------
2,653,610
--------------
U.S. TREASURY BILL - 3.00%
U.S. Treasury Bill (0.00% due
12/21/00) 730,000 720,186
--------------
Total Short-Term Investments
(cost $3,373,796) 3,373,796
--------------
TOTAL INVESTMENTS - 98.70%
(cost $22,415,948)(2) 23,703,611
--------------
OTHER ASSETS AND LIABILITIES - 1.30% 311,392
--------------
TOTAL NET ASSETS - 100% $ 24,015,003
==============
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
(2) Represents cost for income tax purposes which is substantially the same for
financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of September 30, 2000 was $3,227,108 and
($1,939,445), respectively.
(3) Securities and other current assets with an aggregate value of $3,544,450
have been segregated with the custodian or designated to cover margin
requirements for the open futures contracts as of September 30, 2000:
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
<S> <C> <C>
-------------------------------------------------------------------
S&P MidCap 400 Index (12/00) 13 $(46,550)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
40
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
COMMON STOCKS - 86.37%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
BASIC INDUSTRIES - 4.97%
Airgas, Inc.* 786 $ 5,355
AK Steel Holding Corporation 1,243 11,653
Albemarle Corporation 349 7,045
AMCOL International Corporation 394 1,921
AptarGroup, Inc. 525 12,567
Arch Chemicals Inc. 275 5,019
Astec Industries, Inc.* 224 2,450
Ball Corporation 434 13,752
Barnes Group Inc. 242 4,447
Battle Mountain Gold Company* 1,923 3,365
Bethlehem Steel Corporation* 1,927 5,781
Brush Engineered Materials, Inc. 238 5,147
Buckeye Technologies Inc* 397 8,238
Bush Boake Allen, Inc.* 89 4,255
Cabot Microelectronics Corporation* 57 2,736
Calgon Carbon Corporation 499 3,399
Cambrex Corporation 363 13,431
Caraustar Industries, Inc. 376 4,160
Carpenter Technology Corp. 269 7,835
Centex Construction Products Inc. 107 2,655
Century Aluminum Co. 179 2,238
Chemed Corp. 132 4,199
ChemFirst Inc. 232 4,829
Chesapeake Corporation 234 4,505
CLARCOR Inc. 354 6,903
Cleveland-Cliffs Inc. 156 3,569
Commercial Metals Company 207 5,279
Crompton Corporation 1,667 13,128
Cytec Industries Inc.* 604 20,196
Delta and Pine Land Company 561 14,411
Deltic Timber Corp. 152 2,575
EarthShell Corporation* 421 526
Elcor Corp. 286 4,147
Ethyl Corp. 911 1,310
Ferro Corp. 507 9,665
Florida Rock Industries, Inc. 270 10,648
Freeport-McMoRan Copper & Gold Inc.* 1,949 17,176
Fuller (H. B.) Co. 194 5,578
Gaylord Container Corp.* 807 1,362
Georgia Gulf Corp. 458 5,238
Gibraltar Steel Corporation* 110 1,815
Glatfelter (P. H.) Company 377 4,571
Great Lakes Chemical Corporation 696 20,402
Greif Bros. Corp. 197 6,550
Harsco Corporation 584 12,885
International Specialty Products Inc.* 211 1,134
Kaiser Aluminum Corp. 427 2,589
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
BASIC INDUSTRIES - 4.97% (CONTINUED)
Kaydon Corporation 440 $ 10,120
Kennametal Inc.* 444 11,433
Lilly Industries, Inc.* 332 9,794
Liqui-Box Corporation* 44 1,425
Longview Fibre Co.* 755 9,060
Louisiana-Pacific Corp. 1,523 13,993
LTV Corp. 1,461 1,918
Lubrizol Corp. (The) 784 15,435
MacDermid Incorporated 210 4,410
Metals USA Inc* 368 1,081
Millennium Chemicals Inc. 970 14,368
Minerals Technologies Inc* 301 13,846
Mobile Mini, Inc* 134 2,580
Mueller Industries, In* 503 11,286
National Steel Corp* 295 885
NCH Corporation* 36 1,271
NL Industries, Inc.* 310 6,568
Nortek, Inc. 139 2,433
NS Group, Inc. 244 4,846
Olin Corporation 531 8,596
OM Group, Inc.* 349 15,225
Omnova Solutions Inc.* 501 2,787
Packaging Corporation of America* 681 7,534
Pactiv Corporation* 2,470 27,621
Polymer Group, Inc. 302 2,227
PolyOne Corporation 1,280 9,360
Pope & Talbot, Inc. 213 3,049
Potlatch Corporation* 418 13,219
Precision Castparts Corporation* 716 27,477
Quanex Corporation* 208 3,965
Rayonier Inc.* 400 14,375
Reliance Steel & Aluminum Company* 289 6,087
Rock-Tenn Co.* 179 1,779
RPM, Inc.* 1,538 13,938
RTI International Metals Inc.* 272 3,927
Ryerson Tull, Inc. 332 3,133
Schulman (A.), Inc. 439 4,829
Scotts Co. (The) 225 7,538
Sequa Corporation* 88 3,740
Solutia Inc.* 1,593 18,120
Southern Peru Copper Corp.* 369 5,720
Specialty Equipment Companies, Inc.* 170 4,197
Springs Industries, Inc.* 188 5,299
Steel Dynamics Inc.* 622 5,715
Stepan Company 81 1,625
Stillwater Mining Co.* 563 15,240
Symyx Technologies, Inc.* 307 13,316
Texas Industries, Inc. 308 9,818
Tredegar Industries, Inc.* 371 6,423
U. S. Can Corporation* 128 2,536
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
41
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
BASIC INDUSTRIES - 4.97% (CONTINUED)
Unifi, Inc.* 831 $ 8,466
Uniroyal Technology Corporation 201 3,015
USEC Inc. 1,256 5,338
Valhi, Inc.* 119 1,495
Valspar Corp.* 543 12,484
W. R. Grace & Company 955 6,566
Wausau-Mosinee Paper Corporation* 751 5,820
WD-40 Co.* 191 4,059
Weirton Steel Corporation 462 1,155
Wellman, Inc. 461 6,656
WestPoint Stevens Inc.* 487 5,966
Wolverine Tube Inc. 121 1,800
Worthington Industries, Inc.* 1,034 9,694
--------------
790,320
--------------
CAPITAL GOODS - 5.69%
AAR Corporation 394 4,506
Actuant Corporation 571 2,248
Advanced Lighting Technologies, Inc.* 203 2,512
Aeroflex Inc.* 391 19,012
AGCO Corporation 871 10,343
Agribrands International Inc.* 147 6,413
Albany International Corporation
Class A* 254 3,048
Alliant Techsystems Inc.* 145 11,908
American Superconductor Corporation* 279 13,715
American Technical Ceramics
Corporation* 44 686
AMETEK, Inc. 467 9,895
Applied Industrial Technologies Inc. 296 5,125
Armor Holdings Inc.* 248 3,720
Armstrong Holdings, Inc. 552 6,590
Baldor Electric Co. 349 7,089
Belden Inc. 355 8,387
Brady (W.H.) Co. 259 7,835
Briggs & Stratton Corp. 326 12,327
Bush Industries, Inc. 121 1,399
C&D Technologies Inc. 373 21,168
Cardinal Technologies, Inc.* 33 1,262
Carlisle Companies, Inc. 442 18,343
Castella Waste Systems Inc. Class A* 293 2,967
Catalytica, Inc.* 442 5,470
C-COR.net Corporation* 403 6,171
CDI Corporation* 161 2,576
Cohu, Inc. 295 4,517
Columbus McKinnon Corporation 182 2,468
CompX International Inc. Class A 62 1,302
CSS Industries, Inc.* 84 1,685
CTS Corp. 407 20,604
Cubic Corporation 10 239
Cummins Engine Company, Inc. 606 18,142
CUNO Inc.* 237 5,273
Curtiss-Wright Corp. 71 $ 3,350
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CAPITAL GOODS - 5.69% (CONTINUED)
Dal-Tile International Inc.* 801 10,013
Detroit Diesel Corp. 115 2,623
Donaldson Company, Inc. 588 12,936
EMCOR Group, Inc.* 134 3,484
Energy Conversion Devices, Inc.* 180 6,694
ESCO Technologies Inc.* 166 2,905
Esterline Technologies Corporation* 253 4,981
Federal Signal Corporation 662 13,157
Flowserve Corp.* 547 8,991
Foster Wheeler Corporation 560 4,060
Franklin Electric Co., Inc. 62 4,278
FuelCell Energy Inc.* 124 11,933
Gardner Denver, Inc.* 191 3,104
GenCorp Inc. 490 3,981
General Cable Corporation 440 3,328
Genlyte Group Inc.* 177 4,525
Gentek, Inc. 92 1,403
Graco Inc. 296 9,546
Granite Construction Inc. 278 6,742
Gulf Island Fabrication Inc. 113 1,992
Hexcel Corporation* 271 3,625
HON Industries, Inc. 782 19,257
IDEX Corp.* 433 12,097
II-VI Inc.* 134 2,502
Insituform Technologies, Inc.* 275 9,247
Ionics, Inc. 237 5,051
Ivex Packaging Corporation* 297 2,914
Jacobs Engineering Group Inc.* 329 13,263
JLG Industries, Inc.* 608 7,410
Kaman Corporation 328 4,141
Kent Electronics Corporation* 414 9,884
Lawson Products, Inc.* 80 1,935
Lennox International Inc. 592 5,550
Lincoln Electric Holdings, Inc. 509 6,776
Lindsay Manufacturing Co.* 180 3,353
Littelfuse, Inc.* 286 8,491
MagneTek, Inc.* 280 2,975
Manitowoc Co., Inc. (The)* 361 6,949
Mechanical Technology Incorporated 337 3,644
Mettler-Toledo International Inc. 566 24,896
Milacron Inc. 523 6,962
Moog Inc. 107 3,223
NACCO Industries, Inc.* 94 3,948
Nanometrics Inc. 65 3,473
NCI Building Systems, Inc.* 265 3,876
New England Business Service, Inc.* 182 3,299
Newport News Shipbuilding Inc.* 424 18,391
Nordson Corporation* 412 11,716
Ogden Corporation 723 9,806
Orbital Sciences Corporation* 547 $ 4,581
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
42
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CAPITAL GOODS - 5.69% (CONTINUED)
Oshkosh Truck Corporation* 211 8,176
Owens Corning* 743 1,950
Penn Engineering & Manufacturing
Corp.* 89 2,798
Pittston Company-Brink's Incorporated* 757 11,734
Primex Technologies Inc.* 136 3,953
Rare Medium Group Inc. 408 3,035
REMEC, Inc.* 543 15,985
Robbins & Myers, Inc.* 114 2,693
Rogers Corporation 217 6,863
Roper Industries, Inc. 441 14,636
Sauer-Danfoss Inc. 288 3,168
Scott Technologies Inc.* 184 3,260
Shaw Group Inc.* 194 13,677
Simpson Manufacturing Co., Inc.* 119 5,318
SLI Inc.* 252 1,843
Spartech Corporation* 222 3,455
SPS Technologies, Inc.* 185 8,973
Standard Register Co. (The)* 188 3,008
Stericycle, Inc.* 200 4,900
Stewart & Stevenson Services, Inc. 409 7,132
Superconductor Technologies Inc.* 255 4,606
SurModics Inc. 86 4,709
Tecumseh Products Company* 234 9,799
Teledyne Technologies Incorporated 391 11,388
Tennant Co. 132 5,841
Terex Corporation* 378 4,938
Tetra Tech, Inc.* 502 14,338
Thermo Fibertek Inc. 87 364
Thomas Industries Inc. 226 4,577
Timken Co. (The)* 726 9,937
Trex Company Inc.* 81 2,455
Trimble Navigation Ltd.* 336 7,518
Trinity Industries, Inc.* 573 13,394
Triumph Group, Inc.* 170 6,099
U.S. Aggregates, Inc.* 74 1,226
UCAR International Inc. 693 8,792
Universal Forest Products, Inc.* 159 1,816
UNOVA Inc.* 627 2,469
Valence Technology, Inc.* 424 7,314
Valmont Industries, Inc. 209 4,154
Wabash National Corporation 318 2,902
Wabtec Corporation* 404 4,091
Wallace Computer Services, Inc. 548 8,357
Washington Group International 474 5,421
Waste Connections Inc.* 244 6,253
Watsco, Inc. 299 3,077
Watts Industries, Inc. 242 2,420
Woodhead Industries, Inc. 165 3,434
Woodward Governor Company* 122 5,437
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CAPITAL GOODS - 5.69% (CONTINUED)
York International Corporation* 556 $ 13,831
--------------
903,720
--------------
CONSUMER DURABLES - 3.13%
Allen Telecom Inc.* 408 6,911
American Axle & Manufacturing
Holdings, Inc.* 133 1,430
Applica Incorporated* 335 2,073
Arctic Cat Inc. 265 3,346
ArvinMeritor, Inc. 1,058 15,539
Audiovox Corporation* 230 3,464
Bandag, Inc. 168 6,038
BorgWarner Inc. 357 11,826
Callaway Golf Co. 1,123 17,266
Centex Corporation 868 27,878
Champion Enterprises, Inc.* 690 2,933
CHS Electronics Inc.* 770 3
Clayton Homes, Inc. 1,446 14,460
Coachmen Industries, Inc. 203 2,119
Collins & Aikman Corp.* 904 4,238
Cooper Tire & Rubber Co. 941 9,469
Crossman Communities, Inc.* 108 2,133
D.R. Horton, Inc. 775 13,301
Delco Remy International Inc.* 312 2,379
Dura Automotive Systems, Inc.* 177 1,634
Exide Corp. 280 2,538
Fedders Corporation 389 1,507
Federal-Mogul Corp. 1,031 5,606
Fleetwood Enterprises, Inc. 487 6,605
Furniture Brands International, Inc.* 722 12,003
Griffon Corp.* 381 2,881
GTECH Holdings Corporation* 509 8,430
Haverty Furniture Companies, Inc. 237 2,592
Hayes Lemmerz International Inc. 261 2,806
IMPCO Technologies, Inc.* 57 1,639
Interface, Inc.* 676 5,387
Kaufman & Broad Home Corporation 703 18,937
Kimball International, Inc. 460 8,223
La-Z-Boy Inc.* 763 11,111
Lear Corporation* 967 19,884
Lennar Corporation 702 20,841
M.D.C. Holdings, Inc. 314 8,164
MascoTech, Inc.* 537 8,894
Meade Instruments Corporation* 122 2,463
Modine Manufacturing Company* 325 9,156
Mohawk Industries, Inc.* 611 13,327
Monaco Coach Corporation* 228 3,762
Myers Industries, Inc.* 239 3,032
National Presto Industries, Inc.* 66 1,976
NVR, Inc.* 134 10,854
Oakley, Inc.* 328 $ 5,761
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
43
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER DURABLES - 3.13% (CONTINUED)
Palm Harbor Homes, Inc. 267 3,671
ParkerVision, Inc. 106 5,101
Polaris Industries Inc. 349 12,302
PriceSmart, Inc. 25 966
Pulte Corporation* 448 14,784
Regal-Beloit Corp.* 306 5,190
Ryland Group, Inc. (The) 190 5,890
Salton Inc.* 140 4,524
SatCon Technology Corporation 110 3,933
Skyline Corp. 95 2,025
Smith (A.O.) Corporation 307 3,857
Snap-on, Inc. 856 20,170
Standard Pacific Corporation 347 6,246
Sturm, Ruger & Co., Inc.* 284 2,325
Sunbeam Corporation* 1,126 1,478
Superior Industries
International, Inc. 275 8,250
Tenneco Automotive Inc.* 496 2,573
Thor Industries, Inc.* 101 2,336
Toll Brothers, Inc.* 301 10,347
Toro Co. (The)* 165 5,198
Tower Automotive, Inc. 589 5,522
Universal Display Corporation* 182 4,015
Universal Electronics Inc. 200 4,838
Walter Industries, Inc. 484 4,296
Winnebago Industries, Inc.* 201 2,513
WMS Industries Inc. 331 7,448
--------------
496,617
--------------
CONSUMER NON-DURABLES - 3.32%
Alberto-Culver Company - Class B 525 15,127
Aurora Foods Inc.* 255 861
Beringer Wine Estates Holdings Inc .* 115 6,390
BioMarin Pharmaceuticals Inc.* 244 4,484
Block Drug Co., Inc. 139 5,994
Blount International, Inc.* 55 619
Blyth Industries, Inc.* 501 11,742
Brown Shoe Company, Inc. 267 2,453
Carter-Wallace, Inc. 294 7,185
Central Garden & Pet Co.* 213 1,478
Chiquita Brands International, Inc.* 544 1,700
Church & Dwight Company Inc. 557 10,235
Coca-Cola Bottling Co. Consolidated 23 965
Columbia Sportswear Company* 93 4,266
Concord Camera Corp.* 288 7,380
Constellation Brands, Inc.* 218 11,840
Corn Products International Inc. 514 11,694
Dean Foods Co. 525 17,456
Del Monte Foods Company* 763 4,721
Dial Corporation (The) 1,249 14,520
Direct Focus Inc.* 187 $ 7,433
Dole Food Co., Inc. 667 10,005
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLES - 3.32%
(CONTINUED)
Dreyer's Grand Ice Cream, Inc. 235 5,067
Earthgrains Co. (The) 620 11,431
Electro Rent Corp.* 211 2,690
Farmer Bros. Company 12 2,160
Fossil, Inc.* 207 2,756
Genesco Inc.* 315 5,335
Guess ?, Inc.* 104 1,170
Hain Celestial Group, Inc.* 424 14,893
Herbalife International, Inc.* 188 1,739
International Multifoods Corporation* 248 4,309
Interstate Bakeries Corporation* 548 8,015
JAKKS Pacific, Inc. 283 2,662
Kellwood Company 359 6,552
Kenneth Cole Productions, Inc. -
Class A* 93 3,284
Lancaster Colony Corporation 463 11,372
Lance, Inc. 367 3,567
Libbey Inc. 222 6,910
Madden (Steven), Ltd. 141 1,216
Medicis Pharmaceutical Corporation* 422 25,946
Michael Foods, Inc.* 199 4,652
Mine Safety Appliances Co. 136 3,001
Nautica Enterprises, Inc.* 455 5,887
Nexell Therapeutics Inc.* 109 1,001
Oneida Ltd. 201 2,789
Oshkosh B'Gosh, Inc. 162 2,465
PepsiAmericas, Inc.* 363 1,271
Perrigo Co.* 902 6,173
Phillips-Van Heusen Corp. 306 3,156
Pilgrim's Pride Corp.* 237 1,629
Playtex Products, Inc.* 418 4,938
Polaroid Corp.* 656 8,815
Polo Ralph Lauren Corporation -
Class A* 797 12,852
Quiksilver, Inc.* 327 6,295
Ralcorp Holdings, Inc.* 409 5,777
Rayovac Corp.* 402 6,884
Reebok International Ltd. 651 12,247
Revlon, Inc.* 128 856
Rica Foods Inc. 104 1,716
Riviana Foods Inc. 102 1,702
Russell Corp.* 398 6,318
Schweitzer-Mauduit
International, Inc.* 213 2,849
Seaboard Corp.* 5 813
Seminis, Inc.* 181 226
Skechers U.S.A. Inc. 205 3,101
Smithfield Foods, Inc. 802 21,053
Smucker (The J.M.) Class A 319 7,736
Star Scientific Inc.* 286 1,144
Stride Rite Corp. (The)* 632 $ 3,200
Suiza Foods Corp. 424 21,492
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
44
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLES - 3.32%
(CONTINUED)
Tejon Ranch Co.* 93 2,353
The Robert Mondavi Corporation* 116 4,742
The Yankee Candle Company* 212 4,267
Timberland Co. (The) 258 10,578
Topps Co., Inc. (The) 637 5,852
Tupperware Corp.* 844 15,192
Twinlab Corporation* 312 1,365
United Natural Foods, Inc.* 128 1,584
Universal Corp.* 412 12,103
Universal Foods Corp. 670 13,651
Vans, Inc.* 181 2,783
Vector Group Ltd.* 186 3,229
Warnaco Group, Inc. (The) 778 3,112
Wolverine World Wide, Inc.* 608 5,662
--------------
528,133
--------------
CONSUMER SERVICES - 13.59%
1 800 FLOWERS.COM Inc. 126 628
24/7 Media Inc.* 255 2,574
4 Kids Entertainment Inc.* 130 2,194
99 Cents Only Stores 176 8,833
Aaron Rents, Inc. 255 3,283
Abercrombie & Fitch Company* 1,377 26,249
ABM Industries Inc. 238 6,471
About.com Inc.* 199 6,443
Ackerley Group, Inc. 168 1,680
ACME Communications Inc.* 146 1,314
ACNielsen Corp.* 783 18,645
Administaff, Inc.* 132 9,992
Advanced Marketing Services, Inc. 115 2,027
Advanced Radio Telecom Corporation* 370 3,145
Advo Inc.* 253 8,349
Alexander's, Inc.* 48 3,924
Allied Riser Communications
Corporation* 764 5,062
AMERCO* 125 2,445
American Classic Voyages Company* 145 2,121
American Eagle Outfitters, Inc.* 325 10,238
American Greetings Corporation -
Class A 943 16,503
American Italian Pasta Company -
Class A* 267 5,123
AmeriSource Health Corp.* 748 35,148
Ames Department Stores, Inc.* 429 2,480
Anchor Gaming* 102 8,115
AnnTaylor Stores Corporation* 371 14,260
APAC Customer Services, Inc.* 342 1,817
Applebee's International, Inc. 348 8,004
Arch Wireless, Inc.* 723 3,615
Argosy Gaming Company* 298 5,401
Ask Jeeves Inc.* 300 $ 5,756
Avenue A Inc.* 73 365
Avis Group Holdings Inc* 321 9,510
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER SERVICES - 13.59% (CONTINUED)
Aztar Corporation* 555 8,533
Bally Total Fitness Holding
Corporation* 348 8,700
Banta Corporation 368 8,970
Barnes & Noble Inc.* 732 14,411
barnesandnoble.com inc.* 148 726
Be Free Inc.* 340 1,445
Beasley Broadcast Group Inc.* 121 1,172
BEBE Stores, Inc.* 37 550
Billing Concepts Corp.* 619 1,973
Bob Evans Farms, Inc. 562 10,397
Boca Resorts, Inc.* 404 4,419
Borders Group, Inc.* 1,143 15,931
Bowne & Co., Inc. 515 5,021
Boyd Gaming Corporation* 552 2,726
Bright Horizons Family Solutions Inc.* 180 4,601
Brightpoint, Inc.* 757 3,809
BUCA Inc.* 104 1,105
Buckle, Inc. (The)* 117 1,360
Buffets, Inc.* 607 8,346
Burlington Coat Factory Warehouse
Corporation 254 3,635
Buy.Com Inc.* 211 587
CAIS Internet, Inc.* 93 453
Calico Commerce Inc.* 237 1,452
Caprock Communications* 489 2,491
Career Education Corporation* 268 11,926
Carrier Access Corporation* 140 2,774
Casey's General Stores, Inc. 653 8,489
Cato Corp. 203 2,538
CBRL Group Inc. 857 12,319
CEC Entertainment Inc* 391 12,512
Central Parking Corp. 178 3,527
Championship Auto Racing Teams Inc.* 166 4,046
Charming Shoppes, Inc.* 1,377 7,186
Cheap Tickets, Inc.* 132 1,370
Cheesecake Factory Inc.* 385 16,651
Chico's FAS, Inc.* 194 6,596
Children's Place Retail Stores Inc.* 248 6,386
Choice Hotels International Inc.* 780 8,580
Choice One Communications, Inc.* 105 1,280
Churchill Downs Inc. 125 3,234
Citadel Communications Corporation* 538 9,146
Claire's Stores, Inc. 592 10,656
Coinstar Inc.* 295 4,001
Coldwater Creek Inc.* 38 1,026
Comfort Systems USA Inc.* 424 2,200
Consolidated Products, Inc.* 348 2,784
Convergent Communications Inc.* 183 $ 583
coolsavings.com inc.* 45 123
Copart, Inc.* 535 7,423
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
45
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER SERVICES - 13.59% (CONTINUED)
Corillian Corporation* 57 549
Corinthian Colleges Inc.* 64 3,776
Corporate Executive Board Company* 278 11,190
Cost Plus, Inc.* 299 9,007
CoStar Group Inc.* 175 6,475
CPI Corp. 102 2,168
Crown Media Holdings, Inc.* 149 2,114
CSK Auto Corporation* 275 1,238
Cumulus Media Inc.* 514 3,148
CyberSource Corporation* 276 3,122
Cypress Communications Inc.* 145 385
Diamond Technology Partners Inc -
Class A* 292 21,681
Digital Courier Technologies Inc.* 460 834
Digital Insight Corporation* 244 8,754
Digitalthink Inc.* 63 2,654
Dillard's Inc 1,368 14,535
Dollar Thrift Automotive Group Inc.* 353 6,972
Dover Downs Entertainment, Inc. 179 2,405
Dress Barn, Inc. (The)* 217 4,557
Drugstore.com Inc.* 263 888
Duane Reade Inc.* 255 6,184
eBenX Inc.* 73 826
Edison Schools Inc.* 207 6,572
Education Management Corporation* 297 8,000
eGain Communications Corporation* 288 2,709
eGlobe Inc.* 847 1,032
Electronics Boutique Holdings
Corporation* 80 1,720
eMerge Interactive Inc.* 96 1,524
Encompass Services Corporation* 920 7,475
Envision Development Corporation* 44 484
eSpeed Inc.* 132 3,754
Ethan Allen Interiors Inc. 578 16,365
eToys Inc.* 839 4,483
Expedia Inc.* 88 1,144
Extended Stay America, Inc.* 1,036 13,727
F.Y.I. Inc.* 180 6,728
Factory 2-U Stores, Inc.* 181 5,532
First Consulting Group Inc.* 253 1,407
FirstWorld Communications Inc.* 146 294
Fleming Companies, Inc. 574 7,498
Footstar, Inc.* 268 8,660
Forrester Research, Inc.* 159 10,136
Fred's, Inc. 128 2,872
Frontline Captial Group* 354 5,819
G & K Services, Inc. 300 8,419
Gaiam Inc.* 37 678
Gartner Group Inc.* 1,078 12,532
Gaylord Entertainment Company 257 $ 6,136
GC Companies, Inc.* 81 243
GetThere.com Inc.* 91 1,610
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER SERVICES - 13.59% (CONTINUED)
Golden Telecom, Inc.* 131 2,276
GoTo.com Inc.* 360 5,940
Great Atlantic & Pacific Tea
Co., Inc. (The) 253 2,799
Grey Global Group Inc.* 9 5,578
Group 1 Automotive Inc.* 237 2,577
Guitar Center Inc.* 322 3,965
Hall Kinion & Associates Inc. 130 3,697
HA-LO Industries, Inc.* 835 3,340
Handleman Co.* 388 4,802
Hanover Direct, Inc. 2,172 1,222
Harland (John H.) Company 413 6,324
Harman International Industries, Inc. 466 18,221
Heidrick & Struggles International
Inc. 279 14,334
High Speed Access Corporation 463 1,678
Hollinger International Inc.* 559 9,363
Hollywood Entertainment Corporation 465 3,458
Hollywood.com, Inc.* 224 1,351
Hot Topic, Inc.* 125 3,750
Hotel Reservations Network Inc.* 79 2,893
HotJobs.com Inc. 233 3,976
Houghton Mifflin Co.* 405 15,896
Hughes Supply, Inc.* 344 6,749
iBEAM Broadcasting Corporation* 155 1,056
IDT Corp.* 320 12,440
IHOP Corporation 291 5,565
Information Holdings Inc.* 137 4,855
infoUSA Inc. - Class B 403 2,015
Ingles Markets, Inc.* 144 1,584
Insight Communications Company, Inc. 573 9,096
Insight Enterprises, Inc.* 466 12,699
Integrated Electrical Services Inc.* 476 3,273
Interliant Inc.* 693 5,544
Internet Pictures Corporation 676 3,676
internet.com Inc.* 163 5,043
InterTAN, Inc.* 423 6,107
Isle of Capri Casinos Inc.* 372 5,766
ITT Educational Services, Inc.* 207 5,615
iVillage Inc. 302 1,170
iXL Enterprises Inc.* 604 2,643
Jack in the Box Inc.* 558 11,962
Journal Register Company* 663 11,022
Juno Online Services, Inc.* 252 1,008
Jupiter Media Metrix, Inc.* 281 4,478
Kelly Services, Inc. 248 5,859
Key3media Group, Inc.* 231 2,527
kforce.com Inc. 565 1,978
Korn/Ferry International* 538 20,343
Krispy Kreme Doughnut Inc.* 43 $ 3,601
Labor Ready, Inc.* 502 2,102
Landry's Seafood Restaurants, Inc.* 362 2,466
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
46
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER SERVICES - 13.59% (CONTINUED)
Lands' End, Inc.* 193 4,053
Lante Corporation 214 1,070
Latitude Communications, Inc. 187 1,449
Leap Wireless International, Inc.* 370 23,148
Learning Tree International, Inc. 157 7,477
Lee Enterprises, Inc.* 645 18,624
Liberty Livewire Corporation* 35 1,076
LifeMinders Inc.* 166 3,808
Linens 'n Things Inc. 580 14,790
LodgeNet Entertainment Corp. 177 5,111
Lone Star Steakhouse & Saloon, Inc.* 385 2,839
Longs Drug Stores Corporation 453 8,664
LookSmart Ltd.* 589 6,589
Luby's Inc.* 327 1,737
Mail.com Inc. - Class A* 586 3,058
Mail-Well, Inc.* 680 3,018
Marcus Corp. (The)* 325 3,413
MarketWatch.com, Inc.* 48 384
Martha Stewart Living Omnimedia, Inc. 137 3,596
Matthews International Corp.* 206 6,051
MAXIMUS, Inc.* 165 3,651
McGrath RentCorp* 131 2,489
MCSi Inc.* 147 4,943
Media General, Inc.* 302 12,986
Mediacom Communications Corporation* 292 4,709
MedicaLogic/Medscape Inc.* 144 513
MemberWorks Inc.* 142 4,668
Men's Wearhouse Inc. 465 13,165
Meredith Corp.* 546 16,107
Meristar Hospitality Corporation* 516 10,449
META Group, Inc.* 119 1,473
Metromedia International Group, Inc.* 1,031 3,856
Michaels Stores, Inc.* 410 16,400
Midas Inc. 228 3,192
Modem Media, Inc. 151 651
Modis Professional Services Inc.* 1,329 6,894
Morrison Management
Specialists, Inc.* 171 5,053
Motient Corporation* 488 6,893
MP3.com, Inc.* 298 1,173
Multex.com, Inc.* 227 3,887
Musicland Stores Corporation 397 2,804
MyPoints.com Inc.* 254 1,397
National Information Consortium, Inc. 235 933
National Processing, Inc. 89 1,240
National Service Industries, Inc. 595 11,640
NationsRent Inc. 539 2,122
Navigant Consulting Inc.* 543 1,867
NBC Internet, Inc. 507 $ 3,327
NBTY Inc. 818 5,343
NCO Group Inc.* 280 3,325
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER SERVICES - 13.59% (CONTINUED)
Neiman-Marcus Group, Inc.* 548 17,776
Neoforma.com Inc* 111 413
net.Genesis Corp.* 64 556
Net2000 Communications Inc.* 147 937
Net2Phone Inc.* 106 2,385
NetCreations Inc* 49 524
NetRatings Inc.* 56 1,050
Netro Corporation* 498 29,507
Network Commerce Inc.* 408 2,282
Network Plus Corporation* 144 1,242
NPC International Inc.* 142 1,389
Nu Skin Enterprises Inc. - Class A* 661 4,379
Nucentrix Broadband Networks* 129 3,306
O'Charley's, Inc. 202 2,487
OfficeMax, Inc.* 1,648 5,871
On Assignment, Inc.* 317 9,946
On Command Corporation* 123 1,511
On2.com Inc.* 271 675
Onvia.com Inc.* 115 510
O'Reilly Automotive, Inc.* 521 7,620
Organic, Inc. 89 401
P C Connections Inc.* 69 3,933
P.F. Chang's China Bistro Inc.* 92 3,180
Pacific Sunwear of California, Inc. 462 8,663
Papa John's International, Inc.* 284 7,118
Paxson Communications Corporation* 482 5,543
Payless ShoeSource, Inc.* 325 18,200
Pegasus Systems Inc. 295 5,771
Penn National Gaming, Inc. 116 1,765
Penton Media, Inc. 310 8,525
Pep Boys-Manny, Moe & Jack (The)* 684 3,420
Performance Food Group Company* 179 6,735
Petco Animal Supplies, Inc.* 308 6,718
PETsMART, Inc.* 1,637 7,673
Pier 1 Imports, Inc. 1,444 19,584
Pinnacle Entertainment Inc.* 278 6,047
Playboy Enterprises, Inc.* 298 4,451
Predictive Systems Inc. 59 1,139
Pre-Paid Legal Services, Inc. 279 9,015
Presstek Inc.* 405 7,771
Price Communications Corp.* 665 13,009
Prime Hospitality Corp.* 656 6,642
Private Media Group, Inc.* 191 1,074
ProBusiness Services Inc.* 213 6,443
Prodigy Communications Corp.* 305 1,563
Professional Detailing Inc.* 59 3,363
Profit Recovery Group
International, Inc. (The)* 604 $ 5,965
ProsoftTraining.com Inc.* 241 3,434
Protection One Inc.* 287 395
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
47
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER SERVICES - 13.59% (CONTINUED)
Pulitzer Inc. 125 5,369
PurcharePro.com Inc.* 151 13,269
Quokka Sports Inc.* 317 1,258
R.H. Donnelley Corporation 469 9,908
Rare Hospitality International, Inc.* 229 4,666
Regent Communications Corporation* 232 1,291
Regis Corp. 502 7,530
Register.com Inc. 71 675
Rent-A-Center, Inc.* 246 8,533
Rent-Way, Inc. 346 10,510
Rhythms NetConnections Inc.* 897 6,615
Rollins, Inc. 248 3,674
Ruby Tuesday, Inc. 900 10,125
Ruddick Corp.* 439 6,091
Russ Berrie and Company Inc. 149 2,943
Ryan's Family Steak Houses, Inc. 522 4,013
Saga Communications Inc.* 93 1,535
Salem Communications Corporation* 343 4,352
Savvis Communications* 244 2,196
Schein (Henry), Inc.* 332 6,619
Scholastic Corporation* 207 16,469
School Specialty Inc. 254 5,413
SciQuest.com Inc.* 261 1,803
SCP Pool Corp. 214 6,340
Service Corp. International* 3,978 9,696
ShopKo Stores, Inc. 432 4,482
Sinclair Broadcast Group, Inc.* 665 7,273
Sirius Satellite Radio Inc.* 461 24,375
SITEL Corp.* 668 1,962
Smart & Final Inc.* 173 1,222
Sodexho Marriott Services Inc* 475 7,808
Sonic Automotive Inc. - Class A* 299 2,485
Sonic Corporation* 262 8,253
Sotheby's Holdings, Inc.* 605 15,049
Source Information Management Co. 149 1,015
Spanish Broadcasting Systems Inc. 449 5,276
Speedway Motorsports, Inc.* 205 4,267
Spherion Corporation 854 10,195
Spiegel, Inc.* 219 1,533
SportsLine.com, Inc. 265 3,660
Stamps.com Inc. 432 1,661
Standex International Corp.* 165 3,187
StarMedia Network, Inc.* 528 3,960
StarTek Inc. 104 3,016
Station Casinos Inc.* 501 7,139
Stein Mart, Inc. 393 4,249
Stewart Enterprises, Inc. 1,391 $ 2,695
Stockwalk.com Group, Inc.* 80 339
Strayer Education, Inc. 106 2,319
Sunglass Hut International, Inc.* 565 3,690
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER SERVICES - 13.59% (CONTINUED)
Switchboard Incorporated* 79 514
Sylvan Learning Systems Inc.* 476 7,378
Syntro Corp.* 75 587
Systemax Inc.* 144 396
Teligent Inc.* 252 3,276
The Boyds Collection, Ltd.* 865 6,379
The Management Network Group Inc.* 78 1,628
The McClatchy Company 272 9,571
TiVo Inc.* 219 4,243
Too, Inc.* 449 10,664
Trans World Entertainment Corp.* 447 4,470
Travelocity.com 217 3,079
Trendwest Resorts Inc.* 54 898
Triarc Companies Inc.* 202 4,974
Tuesday Morning Corp.* 147 1,148
Tweeter Home Entertainment
Group, Inc.* 229 8,316
U.S. Industries, Inc.* 1,194 11,865
U.S. Interactive, Inc.* 252 638
Ultimate Electronics, Inc.* 122 5,017
United Auto Group, Inc. 83 685
United Rentals Inc. 491 11,845
United Stationers Inc. 475 12,766
United Television, Inc.* 58 8,526
Uproar Inc. 36 135
URS Corp.* 188 2,491
Vail Resorts, Inc. 221 4,475
Value City Department Stores, Inc. 225 1,856
Value Line, Inc.* 28 982
ValueVision International, Inc.* 563 14,145
VASCO Data Security
International, Inc.* 170 2,709
Venator Group Inc.* 2,013 24,911
Ventro Corporation* 319 3,509
Vicinity Corporation* 102 1,122
Volt Information Sciences, Inc.* 118 2,537
Wackenhut Corporation 133 1,978
WatchGuard Technologies Inc. 161 9,660
Webvan Group Inc 1 1
Wesco International, Inc.* 287 2,296
Whitehall Jewellers Inc. 199 1,580
Whole Foods Market, Inc.* 384 20,616
Wild Oats Markets, Inc. 280 3,290
Wiley (John) & Sons, Inc.* 678 15,552
Wilsons The Leather Experts Inc.* 144 2,601
Wink Communications Inc. 315 3,780
Women.com Networks Inc. 246 673
World Wrestling Federation
Entertainment Inc. 168 $ 2,552
WorldGate Communications, Inc.* 182 3,822
WorldPages.com Inc.* 524 2,227
X-ceed, Inc.* 213 533
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
48
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER SERVICES - 13.59% (CONTINUED)
XM Satellite Radio Holdings Inc. 177 7,622
Young Broadcasting Inc.* 142 4,464
Zale Corporation* 515 16,705
Ziff-Davis Inc.* 462 3,754
Zomax, Incorporated* 412 2,884
Z-Tel Technologies Inc.* 92 667
--------------
2,158,586
--------------
DIVERSIFIED - .03%
Terremark Worldwide Inc.* 1,815 4,628
--------------
4,628
--------------
ENERGY - 3.24%
Arch Coal Inc. 244 2,440
Atwood Oceanics, Inc.* 129 5,378
Barrett Resources Corporation* 419 15,843
Basin Exploration, Inc.* 199 3,881
Belco Oil & Gas Corp.* 223 1,979
Berry Petroleum Company 276 4,985
Cabot Oil & Gas Corporaiton 335 6,826
Cal Dive International Inc.* 175 10,008
Callon Petroleum Co.* 87 1,376
Carbo Ceramics Inc. 71 1,886
Chesapeake Energy Corporation* 1,370 9,847
Clayton Williams Energy, Inc.* 64 2,592
Comstock Resources, Inc.* 283 3,219
Consol Energy Inc. 370 5,943
Cross Timbers Oil Company 1,009 19,360
Denbury Resources Inc.* 237 1,659
Dril-Quip, Inc* 135 5,383
EEX Corporation* 423 2,062
Evergreen Resources, Inc.* 185 6,429
Forcenergy, Inc* 191 4,990
Forest Oil Corporation* 477 7,721
Friede Goldman Halter, Inc.* 405 2,860
Frontier Oil Corporation* 402 2,965
Grey Wolf, Inc.* 2,610 15,008
Horizon Offshore Inc. 130 2,291
Houston Exploration Company 125 3,156
HS Resources, Inc.* 246 8,272
Input/Output, Inc.* 562 5,409
Key Energy Group, Inc.* 1,253 12,295
Key Production Co., Inc.* 140 3,089
Lone Star Technologies, Inc. 348 16,060
Louis Dreyfus Natural Gas Corporation 287 11,372
Maverick Tube Corp.* 261 $ 7,031
McMoRan Exploration Co.* 231 2,680
Meridian Resource Corporation 225 1,547
Midcoast Energy Resources, Inc. 161 3,311
Mitchell Energy & Development Corp.* 298 13,894
Newpark Resources, Inc. 1,011 9,352
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
ENERGY - 3.24% (CONTINUED)
Nuevo Energy Co.* 223 4,098
Oceaneering International, Inc. 305 5,071
Offshore Logistics, Inc.* 308 5,506
Parker Drilling Co.* 957 6,699
Patina Oil & Gas Corporation* 163 3,260
Patterson Energy Inc.* 479 16,466
Penn Virginia Corp.* 101 2,626
Pennaco Energy, Inc. 225 3,909
Pennzoil-Quaker State Company 1,146 12,033
Pioneer National Resources Company 1,456 20,654
Plains Resources Inc.* 234 4,417
Pogo Producing Co. 590 14,971
Prima Energy Corp.* 86 4,580
Prize Energy Corporation* 40 755
Pure Resources, Inc.* 731 15,488
RPC, Inc. 193 2,268
Seacor Smit, Inc.* 246 11,470
Seitel, Inc.* 267 3,838
SEMCO Energy, Inc. 262 4,028
Spinnaker Exploration Company* 109 3,801
St. Mary Land & Exploration Company* 408 9,410
Stone Energy Corp.* 242 13,310
Superior Energy Services, Inc. 648 6,804
Swift Energy Co.* 279 11,596
Syntroleum Corporation* 399 8,130
Tesoro Petroleum Corporation* 463 4,601
Tom Brown Inc.* 402 9,849
TransMontaigne Inc.* 384 1,896
Trico Marine Services, Inc.* 327 5,191
Unit Corporation* 466 6,874
Universal Compression Holdings, Inc. 102 3,156
UTI Energy Corporation* 205 9,148
Veritas DGC Inc.* 377 10,909
Vintage Petroleum, Inc.* 711 16,175
Western Gas Resources, Inc. 289 7,243
--------------
514,629
--------------
FINANCE - 16.59%
1st Source Corporation 169 3,549
Acacia Research Corporation* 210 7,324
ADVANTA Corporation - Class A 318 3,578
Affiliated Mangers Group Inc.* 327 18,619
Alabama National BanCorporation 122 2,638
Alexandria Real Estate Equities Inc. 176 6,039
Alfa Corporation 573 $ 9,992
Alleghany Corporation* 70 13,720
Allied Capital Corporation 1,013 21,020
AMCORE Financial, Inc. 396 7,772
American Captial Strategies Ltd. 303 7,177
American Financial Holdings Inc. 422 7,438
American Industrial Properties REIT 259 3,691
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
49
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCE - 16.59% (CONTINUED)
American National Insurance Co. 149 9,517
AmeriCredit Corp.* 1,107 31,895
AmerUs Group Co 184 4,738
Amli Residential Properties Trust 213 5,112
Ampal-American Israel Corporation* 275 3,609
Anchor BanCorp Wisconsin Inc. 369 5,789
Andover Bancorp, Inc. 93 2,837
Arch Capital Group Ltd.* 181 2,851
Arden Realty, Inc. 869 23,300
Area Bancshares Corporation 137 3,040
Argonaut Group, Inc. 256 4,480
Astoria Financial Corporation 674 26,033
Baldwin & Lyons, Inc. 171 3,313
BancFirst Corp. 59 1,881
BancorpSouth, Inc. 1,238 17,796
Bank of Granite Corporation 167 3,831
Bank United Corp. 474 24,026
BankAtlantic Bancorp - Class A 335 1,403
BARRA, Inc.* 163 10,116
Bay View Capital Corporation 412 4,429
Bedford Property Investors, Inc. 272 5,525
Berkley (W. R.) Corp. 254 8,779
Blackrock, Inc.* 263 8,416
Blanch (E.W.) Holdings, Inc. 195 4,046
BOK Financial Corp.* 153 2,831
Boykin Lodging Co. 250 2,594
Brandywine Realty Trust 496 10,044
BRE Properties, Inc. 654 20,928
Brenton Banks, Inc. 208 2,509
Brookline Bancorp Inc. 189 2,162
Brown & Brown, Inc. 314 9,989
BSB Bancorp, Inc. 135 3,021
BT Financial Corp. 243 4,496
Burnham Pacific Properties, Inc. 472 2,862
Cabot Industrial Trust 593 11,823
Cadiz Inc.* 516 5,160
Camden Property Trust 558 17,298
Capital Automotive REIT 302 3,926
Capital City Bank Group Inc. 60 1,174
Capitol Federal Financial 515 7,532
Capstead Mortgage Corporation 256 2,304
Cash America International, Inc. 377 2,757
Catellus Development Corporation* 1,562 27,335
Cathay Bancorp, Inc. 132 $ 6,435
CB Richard Ellis Services, Inc.* 298 3,651
CBL & Associates Properties, Inc. 363 9,098
Centerpoint Properties Trust 303 13,957
Century Business Services Inc.* 1,084 1,423
Century South Banks, Inc. 163 2,995
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCE - 16.59% (CONTINUED)
Charter Municipal Mortgage Acceptance
Company 300 4,152
Chateau Communities, Inc. 313 8,392
Chelsea GCA Realty, Inc. 233 8,184
Chemical Financial Corporation 205 4,818
Chittenden Corp. 416 10,686
Citizens Banking Corp. 696 16,008
City Bank 136 2,346
CNA Surety Corporation 241 2,772
Colonial BancGroup, Inc. (The) 1,407 14,598
Colonial Properties Trust 320 8,220
Commerce Bancorp Inc 447 26,010
Commerce Group Inc 366 10,591
Commercial Federal Corporation 825 15,778
Commercial Net Lease Realty, Inc 443 4,596
Community First Bankshares, Inc. 737 12,944
CompuCredit Corporation* 179 10,041
Cornerstone Realty Income Trust Inc. 571 6,067
CORUS Bankshares, Inc. 135 4,871
Cousins Properties Inc. 381 16,407
CPB Inc. 120 3,240
Crawford & Company 516 6,289
Credit Acceptance Corporation* 247 1,559
Creditrust Corp* 71 4
Crestline Capital Corporation* 217 4,354
Cullen/Frost Bankers, Inc. 765 24,863
CVB Financial Corp. 253 4,254
Dain Rauscher Corporation 187 17,391
Data Broadcasting Corp.* 1,009 3,216
Delphi Financial Group, Inc.* 217 8,789
Developers Diversified Realty Corp. 853 10,982
Dime Community Bancorp, Inc 184 4,554
DLJdirect* 233 1,602
Doral Financial Corporation 462 7,479
Downey Financial Corp. 310 12,245
East West Bancorp Inc. 328 6,417
EastGroup Properties Inc 228 5,073
Eaton Vance Corp. 434 22,134
E-Loan Inc.* 137 574
Enhance Financial Services Group Inc. 396 5,148
Entertainment Properties Trust 219 2,327
Equity Inns, Inc. 536 3,551
Essex Property Trust, Inc. 264 14,619
F & M National Corp. 363 8,871
F&M Bancorp 155 $ 3,071
F.N.B. Corp. 320 6,840
Fair, Isaac and Co., Inc. 166 7,086
Fairfield Communities, Inc.* 600 6,075
Farmers Capital Bank Corp. 92 3,306
FBL Financial Group, Inc. 173 2,811
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
50
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCE - 16.59% (CONTINUED)
Federal Realty Investment Trust 575 10,997
FelCor Lodging Trust, Inc. 689 15,933
Fidelity National Financial, Inc. 778 19,256
Financial Federal Corp.* 157 3,797
FINOVA Group Inc. 896 6,496
First American Financial Corp. (The) 802 16,742
First Busey Corp. 132 2,442
First Charter Corporation 458 6,612
First Citizens BancShares, Inc. 87 6,226
First Commonwealth Financial
Corporation 849 8,225
First Federal Capital Corporation 217 2,672
First Financial Bancorp 516 8,127
First Financial Bankshares, Inc. 145 4,649
First Financial Corp. 98 2,989
First Financial Holdings, Inc. 195 2,986
First Indiana Corporation 136 3,545
First Industrial Realty Trust, Inc. 566 17,405
First Merchants Corporation 170 3,761
First Midwest Bancorp, Inc. 601 16,002
First Niagara Financial Group, Inc. 179 1,656
First Sentinel Bancorp 527 5,023
First Washington Realty Trust, Inc. 118 2,994
FirstBank Puerto Rico 310 7,576
FirstFed Financial Corp.* 251 5,773
Forest City Enterprises, Inc. 231 8,316
Franchise Finance Corporation of
America 823 18,518
Fremont General Corp. 849 2,918
Friedman, Billings, Ramsey Group Inc.* 348 3,241
Frontier Financial Corporation 214 4,026
Fulton Financial Corporation 1,043 20,664
Gabelli Asset Management, Inc.* 80 2,400
Gables Residential Trust 354 9,624
Gallagher (Arthur J.) & Company 544 32,164
GBC Bancorp 156 5,314
Glenborough Realty Trust Inc. 428 7,704
Glimcher Realty Trust 347 5,183
GlobalNet Financial.com, Inc.* 317 2,001
Gold Banc Corporation, Inc.* 431 2,209
Great Lakes REIT Inc.* 239 4,153
Greater Bay Bancorp 260 18,054
Hancock Holding Company* 133 4,115
Harbor Florida Bancorp, Inc. 334 4,029
Harleysville Group Inc. 192 3,651
Harleysville National Corp. 115 3,472
Harris Financial, Inc. 119 $ 922
HCC Insurance Holdings, Inc.* 600 12,188
Health Care Property Investors, Inc. 707 20,945
Health Care REIT, Inc.* 417 7,402
Healthcare Realty Trust Inc. 586 12,379
Highwoods Properties, Inc. 870 20,554
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCE - 16.59% (CONTINUED)
Hilb, Rogal & Hamilton Co. 191 7,962
Home Properties of New York, Inc. 294 8,783
Horace Mann Educators Corporation* 597 9,776
Hospitality Properties Trust* 739 17,274
HRP Properties Trust 1,929 13,503
HSB Group, Inc.* 424 17,013
Hudson United Bancorp 741 20,470
Imperial Bancorp* 545 10,423
Independence Community Bank
Corporation 978 13,692
Independent Bank Corp.* 175 2,100
IndyMac Mortgage Holdings Inc.* 990 20,357
Innkeepers USA Trust* 507 5,197
Insignia Financial Group, Inc.* 263 2,696
Insurance Auto Auctions, Inc.* 123 1,991
Integra Bank Corporation* 255 5,658
International Bancshares Corp.* 228 6,983
Investment Technology Group, Inc.* 402 16,055
Investors Financial Services Corp.* 426 26,891
IRT Property Company* 465 4,069
Irwin Financial Corporation 154 2,522
JDN Realty Corp.* 494 5,588
Jefferies Group, Inc. 357 9,594
John Nuveen Company* 98 4,741
Jones Lang LaSalle Inc.* 442 5,746
JP Realty, Inc.* 179 3,233
Kansas City Life Insurance Co. 100 3,300
Keystone Financial, Inc.* 713 15,508
Kilroy Realty Corporation* 383 10,221
Koger Equity, Inc.* 388 6,596
LaBranche & Company Inc. 540 18,023
LandAmerica Financial Group, Inc* 144 4,113
LaSalle Hotel Properties* 156 2,360
Leucadia National Corp.* 553 14,793
Lexington Corporate Properties, Inc. 250 2,813
Liberty Corp. (The) 228 7,895
Liberty Financial Companies, Inc.* 200 4,700
LNR Property Corporation* 325 7,191
Macerich Co. (The)* 459 9,754
MAF Bancorp, Inc. 345 8,582
Manufactured Home Communities, Inc.* 268 6,700
Markel Corporation* 83 12,595
Medallion Financial Corp. 163 2,740
Medical Assurance Inc.* 273 3,344
Meditrust Corporation* 2,084 6,122
Merchants New York Bancorp, Inc.* 277 $ 5,696
Mercury General Corp. 390 11,042
Metris Companies Inc.* 850 33,575
Mid-America Apartment Communities
Inc.* 258 6,176
Mid-America Bancorp 124 3,240
Mid-State Bancshares 164 5,125
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
51
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SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCE - 16.59% (CONTINUED)
Mississippi Valley Bancshares, Inc. 91 2,349
Morgan Keegan, Inc. 322 5,635
National Discount Brokers Group Inc. 158 4,888
National Golf Properties, Inc. 196 4,043
National Health Investors Inc.* 356 2,403
National Penn Bancshares, Inc. 258 4,962
National Western Life Insurance Co.* 29 2,117
Nationwide Health Properties, Inc.* 675 10,758
NBT Bancorp Inc.* 264 3,168
Net.Bank Inc.* 355 4,193
New Plan Excel Realty Trust* 1,281 17,534
NextCard Inc.* 409 3,719
Northwest Bancorp, Inc. 211 1,767
OceanFirst Financial Corporation* 175 3,631
Ocwen Financial Corporation* 476 2,797
Ohio Casualty Corporation 878 5,570
Old Kent Financial Corp. 4 116
Omega Financial Corp. 128 3,872
Oriental Financial Group Inc.* 166 2,573
Pacific Capital Bancorp 359 9,603
Pacific Gulf Properties Inc. 269 7,196
Pacific Northwest Bancorp* 201 2,600
Pan Pacific Retail Properties Inc.* 129 2,580
Park National Corp.* 123 11,808
Parkway Properties, Inc. 144 4,392
Pennsylvania Real Estate Investment
Trust 179 3,121
People's Bank 403 8,488
PFF Bancorp, Inc.* 192 4,176
Philadelphia Consolidated Holding
Corp. 92 1,921
Phoenix Investment Partners, Ltd.* 647 10,029
PICO Holdings, Inc.* 194 2,534
Pioneer Group, Inc. (The)* 342 15,037
PMA Capital Corporation* 248 4,464
Premier National Bancorp Inc. 231 4,678
Prentiss Properties Trust 527 13,768
Presidential Life Corporation* 300 4,481
Prime Group Realty Trust 139 2,189
Prison Realty Trust, Inc.* 1,731 2,056
Provident Bankshares Corporation 367 6,147
Provident Financial Group, Inc.* 320 9,400
PS Business Parks Inc* 342 9,320
Queens County Bancorp Inc.* 241 6,959
R&G Financial Corporation 148 1,425
Raymond James Financial, Inc. 574 18,906
Realty Income Corp. 390 $ 9,092
Reckson Associates Realty Corporation* 597 15,224
Regency Realty Corp.* 451 10,345
Reliance Group Holdings, Inc. 957 194
Republic Bancorp Inc. 661 6,280
Republic Security Financial
Corporation* 712 3,516
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCE - 16.59% (CONTINUED)
RFS Hotel Investors Inc.* 358 4,520
Richmond County Financial Corporation 448 10,836
Riggs National Corp.* 279 3,418
RLI Corp. 115 4,435
Roslyn Bancorp, Inc. 974 21,793
S&T Bancorp, Inc.* 394 7,486
Sandy Spring Bancorp Inc.* 140 3,500
Santander BanCorp* 121 1,997
Saul Centers, Inc.* 158 2,518
SCPIE Holdings Inc. 137 2,757
Seacoast Financial Services
Corporation* 372 4,092
Security Capital Group Inc.* 446 8,446
Selective Insurance Group, Inc.* 383 6,846
Senior Housing Properties Trust* 190 1,769
Shoreline Financial Corp. 7 98
Shurgard Storage Centers, Inc.* 426 9,612
Silicon Valley Bancshares* 587 34,158
Sky Financial Group Inc. 1,130 20,058
SL Green Realty Corporation 316 8,868
Smith (Charles E.) Residential
Realty, Inc.* 306 13,885
Southwest Bancorporation of
Texas, Inc. 413 13,500
Southwest Securities Group, Inc. 232 6,786
Sovran Self Storage, Inc.* 177 3,629
StanCorp Financial Group* 463 19,793
State Auto Financial Corp. 176 2,310
Staten Island Bancorp Inc.* 537 10,740
Sterling Bancshares, Inc.* 381 5,810
Stewart Information Services Corp.* 150 2,306
Storage USA, Inc.* 404 12,322
Student Loan Corp. 58 2,831
Summit Properties Inc. 363 8,735
Sun Communities, Inc.* 255 8,064
Susquehanna Bancshares, Inc.* 574 8,754
Tanger Factory Outlet Centers, Inc.* 76 1,672
Taubman Centers, Inc.* 498 5,758
Texas Regional Bancshares, Inc.* 212 6,016
The Midland Company* 63 1,670
The Mills Corporation 226 4,280
The South Financial Group, Inc. 629 7,941
Town & Country Trust (The)* 232 4,176
Trammell Crow Company* 357 5,355
Trenwick Group Ltd 238 4,522
Triad Guaranty Inc.* 194 5,772
Trust Company of New Jersey 237 3,970
TrustCo Bank Corp N Y 782 $ 9,628
Trustmark Corp. 898 17,511
Tucker Anthony Sutro* 240 6,090
U.S.B. Holding Co., Inc.* 137 1,824
UCBH Holdings, Inc. 136 4,871
UICI 546 3,822
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
52
<PAGE>
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RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCE - 16.59% (CONTINUED)
UMB Financial Corp. 234 8,717
United Bankshares, Inc. 505 9,911
United Community Financial Corp. 441 2,894
United Dominion Realty Trust, Inc. 1,508 16,400
United National Bancorp* 232 4,118
Urban Shopping Centers Inc.* 149 7,078
Vencor, Inc.* 879 4,395
W Holding Company Inc.* 404 4,116
Washington Federal, Inc. 799 18,177
Washington Real Estate Investment
Trust* 522 10,473
Webb (Del) Corp.* 239 6,632
Webster Financial Corporation* 623 16,782
Weingarten Realty Investors* 391 15,933
Wesbanco, Inc.* 281 6,024
Westamerica Bancorporation* 530 17,722
Westcorp Inc.* 121 1,815
Western Properties Trust 252 3,103
Westfield America Inc. 422 5,803
WFS Financial Inc. 132 2,236
Whitney Holding Corporation* 330 11,983
Wit Soundview Group Inc.* 1,051 9,459
Wyndham International Inc. - Class A* 2,199 3,986
Zenith National Insurance Corporation 135 2,953
--------------
2,636,663
--------------
HEALTH CARE - 11.50%
ABIOMED, Inc.* 107 7,289
Accredo Health Inc.* 141 6,891
Aclara BioSciences, Inc.* 132 4,010
Acuson Corporation* 303 6,893
ADAC Laboratories* 300 6,244
Advance ParadigM, Inc.* 275 11,602
Advanced Tissue Sciences, Inc.* 875 6,508
Albany Molecular Research Inc.* 244 13,710
Alexion Pharmaceuticals, Inc.* 184 20,976
Alliance Pharmaceutical Corporation* 688 10,492
Allos Therapeutics Inc.* 73 662
Allscripts Inc.* 264 3,729
ALPHARMA INC. 314 19,193
AmeriPath Inc.* 315 4,568
Amylin Pharmaceuticals Inc.* 817 8,783
Anesta Corp.* 178 4,094
Antigenics Inc.* 54 797
Aphton Corporation* 198 5,693
Apria Healthcare Group Inc.* 576 $ 8,028
Aradigm Corporation* 254 5,826
ARIAD Pharmaceuticals, Inc.* 338 4,246
Arrow International, Inc. 166 6,038
ArthroCare Corp.* 286 5,559
Aspect Medical Systems Inc.* 50 619
ATS Medical, Inc.* 278 4,187
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
HEALTH CARE - 11.50% (CONTINUED)
Aurora Biosciences Corporation* 287 19,516
AVANT Immunotherapeutics Inc* 654 7,071
Avigen, Inc* 211 8,387
Aviron* 250 14,578
Bacou USA, Inc.* 69 1,790
Barr Laboratories, Inc.* 393 26,061
Bergen Brunswig Corp. 1,966 22,978
Beverly Enterprises, Inc.* 1,481 8,793
Bindley Western Industries, Inc. 366 11,712
BioCryst Pharmaceuticals, Inc.* 186 3,871
Biomatrix, Inc.* 215 3,763
Biopure Corporation* 196 3,540
Bio-Rad Laboratories, Inc.* 118 2,656
Biosite Diagnostics Inc* 200 7,975
Bio-Technology General Corporation* 792 9,059
Bone Care International, Inc.* 100 2,075
CardioDynamics International
Corporation* 410 2,140
Caremark Rx Inc.* 2,920 32,850
Cell Genesys, Inc.* 490 14,700
Cell Pathways Inc.* 309 2,511
Cell Therapeutics Inc.* 354 23,607
Celsion Corporation* 711 1,733
Cerus Corporation* 130 7,215
ChromaVision Medical Systems Inc.* 207 1,967
Closure Medical Corporation* 92 2,317
Coherent, Inc.* 359 24,412
Collateral Therapeutics Inc.* 106 3,067
Columbia Laboratories, Inc.* 336 1,953
CONMED Corp.* 210 2,874
Connective Therapeutics, Inc.* 398 9,602
Cooper Companies, Inc. (The) 206 7,287
Corixa Corporation* 276 13,869
CorVel Corp.* 88 2,448
Coulter Pharmaceutical Inc.* 249 7,190
Covance Inc* 836 6,845
Coventry Health Care, Inc.* 856 12,947
CryoLife, Inc.* 155 5,377
Cubist Pharmaceuticals, Inc* 389 20,252
CuraGen Corporation* 361 19,235
CV Therapeutics, Inc* 223 17,345
Cyber-Care Inc.* 659 4,191
Cyberonics, Inc.* 230 4,931
CyberOptics Corporation* 98 1,795
Cygnus, Inc.* 335 $ 3,685
Cytogen Corporation* 1,048 6,616
Datascope Corp. 177 5,930
Diagnostic Products Corporation 164 8,795
Diametrics Medical, Inc.* 356 2,859
Digene Corp.* 153 5,508
Diversa Corporation* 111 2,997
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
53
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
HEALTH CARE - 11.50% (CONTINUED)
Dura Pharmaceuticals, Inc.* 648 22,923
DUSA Pharmaceuticals, Inc.* 198 6,101
DVI, Inc.* 142 2,760
Eclipsys Corporation* 536 8,576
Edwards Lifesciences Corporation* 852 18,584
Emisphere Technologies, Inc.* 208 6,227
Endocare, Inc.* 146 2,884
EntreMed, Inc.* 207 5,770
Enzo Biochem, Inc.* 326 15,811
Enzon, Inc.* 593 39,119
Exelixis Inc.* 131 4,110
Fisher Scientific International Inc.* 586 19,778
Foundation Health Systems Inc -
Class A* 1,512 25,137
GelTex Pharmaceuticals, Inc.* 228 10,673
Gene Logic Inc.* 372 8,556
Genome Therapeutics Corp.* 301 6,189
Genomic Solutions Inc.* 17 292
Genta Inc.* 170 1,626
Gentiva Health Services, Inc.* 250 3,188
Genzyme Transgenics Corp.* 271 9,553
Geron Corp.* 313 8,881
Gliatech Inc.* 140 875
Guilford Pharmaceuticals Inc.* 342 7,887
Haemonetics Corp.* 378 9,639
HEICO Corp.* 116 1,508
Hooper Holmes, Inc. 961 9,139
Humana Inc. 2,317 24,908
Hyseq Inc.* 143 5,228
IDEXX Laboratories, Inc.* 518 13,857
IDX Systems Corp.* 222 3,580
IGEN International Inc.* 139 2,797
ILEX Oncology Inc.* 318 9,580
Imatron Inc.* 1,327 3,069
Immune Response Corporation (The)* 344 2,365
ImmunoGen, Inc.* 483 16,513
Immunomedics, Inc.* 439 9,192
IMPATH Inc.* 254 16,034
INAMED Corporation* 188 5,288
Inhale Therapeutic Systems* 470 26,496
InterMune Pharmaceuticals Inc. 99 5,371
IntraBiotics Pharmaceuticals Inc.* 110 1,788
Invacare Corp.* 347 11,147
Invitrogen Corporation 123 8,748
Isis Pharmaceuticals, Inc.* 518 $ 5,957
i-STAT Corp.* 235 5,317
Kos Pharmaceuticals Inc.* 134 2,647
K-V Pharmaceutical Company* 259 8,936
Laboratory Corporation of America
Holdings* 96 11,496
Lexicon Genetics, Inc. 145 4,586
Lifepoint Hospitals, Inc.* 457 16,224
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
HEALTH CARE - 11.50% (CONTINUED)
Ligand Pharmaceuticals Inc.* 760 9,738
Lincare Holdings Inc. 597 17,126
Luminex Corporation* 67 2,546
Lynx Therapeutics Inc. 144 4,509
Manor Care, Inc. 1,175 18,433
Martek Biosciences Corp.* 255 4,973
Matrix Pharmaceutical, Inc.* 336 5,229
Maxim Pharmaceuticals, Inc.* 293 17,800
Maxygen Inc.* 108 5,603
MedQuist, Inc. 195 3,937
Mentor Corporation* 320 5,040
MGI Pharma, Inc.* 239 7,170
Mid Atlantic Medical Services, Inc. 648 9,801
Miravant Medical Technologies 203 4,415
Molecular Devices Corp.* 164 16,113
Myriad Genetics, Inc.* 268 23,149
Nabi* 491 3,437
Nanogen Inc.* 209 4,049
NeoRx Corp.* 287 7,032
Neose Technologies, Inc.* 158 7,643
Neurocrine Biosciences, Inc. 294 13,230
Neurogen Corp.* 181 5,634
Noven Pharmaceuticals, Inc.* 276 11,799
Novoste Corp.* 207 8,798
NPS Pharmaceuticals, Inc. 282 15,951
Ocular Sciences Inc.* 232 2,784
Omnicare, Inc. 1,347 21,720
ORATEC Interventions Inc.* 64 784
Orchid Biosciences Inc.* 87 2,958
Organogenesis Inc.* 495 7,277
Orthodontic Centers of America, Inc. 595 19,821
OSI Pharmaceuticals, Inc.* 341 23,870
Owens & Minor, Inc. 480 7,560
Packard BioScience Company* 176 3,432
Paradigm Genetics, Inc.* 72 1,719
PAREXEL International Corp. 369 3,137
Per-Se Technologies Inc.* 436 5,532
Pharmaceutical Product
Development, Inc.* 270 7,172
Pharmacopeia, Inc.* 265 6,758
Pharmacyclics, Inc.* 233 11,563
PolyMedica Corporation 150 6,431
Praecis Pharmaceuticals Inc.* 116 4,930
Priority Healthcare Corporation-
Class B* 163 12,429
Province Healthcare Company* 441 $ 17,612
PSS World Medical Inc.* 1,038 3,763
Quorum Health Group, Inc. 1,033 13,429
Regeneron Pharmaceuticals, Inc. 262 8,548
RehabCare Group, Inc.* 184 7,820
Renal Care Group Inc.* 660 12,293
Res-Care, Inc.* 283 1,291
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
54
<PAGE>
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RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
HEALTH CARE - 11.50% (CONTINUED)
ResMed Inc.* 435 13,594
Respironics, Inc.* 482 8,043
Ribozyme Pharmaceuticals, Inc.* 130 3,770
RightCHOICE Managed Care, Inc. 54 1,310
Sangstat Medical Corporation 230 2,947
SciClone Pharmaceuticals, Inc.* 444 4,829
Sequenom, Inc.* 76 3,202
Sicor Inc. 602 6,171
Sonic Innovations Inc.* 49 515
STAAR Surgical Co.* 172 2,978
STERIS Corp. 987 11,844
Sunrise Assisted Living, Inc.* 274 5,942
Sunrise Technologies
International, Inc.* 678 4,873
SuperGen, Inc.* 372 7,138
Syncor International Corporation* 276 10,160
Targeted Genetics Corporation 389 4,619
Techniclone Corp. 1,153 2,810
Texas Biotechnology Corporation 596 9,715
Theragenics Corporation* 382 2,483
Thermo Cardiosystems Inc.* 225 1,983
Thoratec Laboratories Corporation* 218 4,796
Titan Pharmaceuticals, Inc.* 335 21,775
Total Renal Care Holding Inc -
Class A* 1,070 8,025
Transkaryotic Therapies, Inc.* 292 12,574
Triad Hospitals Inc.* 497 14,599
Triangle Pharmaceuticals, Inc.* 478 4,033
Trimeris Inc. 228 15,946
Tularik Inc.* 160 5,280
United Therapeutics Corporation* 195 17,038
US Oncology Inc.* 1,052 4,767
Valentis Inc. 424 3,498
Vasomedical, Inc.* 726 3,539
VaxGen, Inc. 116 2,712
Ventana Medical Systems, Inc.* 134 3,400
Ventiv Health, Inc.* 227 2,866
Vical Inc.* 289 7,478
VISX Inc./DE 790 21,281
Vital Signs, Inc.* 81 2,147
VIVUS, Inc.* 471 2,002
WebMD Corp 1 8
Wesley Jessen VisionCare Inc. 132 5,074
West Pharmaceutical Services, Inc. 152 3,534
Zoll Medical Corporation* 122 $ 5,948
--------------
1,827,456
--------------
PUBLIC UTLITIES - 4.48%
Adelphia Business Solutions Inc.* 397 4,690
AGL Resources Inc. 793 15,910
Airgate PCS* 133 5,968
Alamosa PCS Holdings Inc.* 152 2,461
ALLETE 1,081 23,917
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
PUBLIC UTLITIES - 4.48% (CONTINUED)
American States Water Company 130 3,933
Atmos Energy Corp. 462 9,529
Avista Corporation 688 15,480
Azurix Corporation* 565 2,013
Black Hills Corp. 312 8,756
California Water Service Group 173 4,628
Cascade Natural Gas Corporation 161 2,818
Centennial Communications Corp.* 111 2,442
CFW Communications Company 191 5,157
CH Energy Group, Inc. 246 9,809
Cleco Corporation 328 15,334
Commonwealth Telephone
Enterprises, Inc.* 153 5,642
Conectiv Inc. 1,322 23,631
CT Communications, Inc 236 4,794
e spire Communications Inc.* 763 2,241
El Paso Electric Company* 801 11,030
Empire District Electric Co. 255 6,694
Energen Corp. 394 11,722
Energy East Corp. 2 53
EnergyNorth, Inc. 48 2,913
E'town Corp. 128 8,560
General Communication, Inc.* 610 4,365
GoAmerica Inc.* 144 1,274
Hawaiian Electric Industries, Inc.* 473 16,496
Hickory Tech Corp.* 201 4,472
ICG Communications Inc.* 710 311
IdaCorp Inc. 550 25,438
Illuminet Holdings, Inc.* 305 8,464
IMPSAT Fiber Networks, Inc.* 173 1,903
Intermedia Communications Inc.* 718 21,181
ITC/\DeltaCom Inc.* 737 8,476
Kansas City Power & Light Co. 905 24,152
Laclede Gas Company 276 5,969
LCC International, Inc.* 151 2,190
Lightbridge, Inc.* 248 2,883
Madison Gas & Electric Co.* 236 5,369
MDU Resources Group, Inc.* 894 26,589
Metrocall, Inc.* 1,088 3,264
Mpower Communications Corporation* 694 6,051
NEON Communications Inc.* 77 2,685
New Jersey Resources Corporation 258 10,481
Northwest Natural Gas Company 368 $ 8,372
Northwestern Corporation* 337 6,572
NUI Corporation* 189 5,705
OGE Energy Corporation 1,138 24,254
ONEOK, Inc.* 426 16,934
Otter Tail Power Company 348 8,048
Peoples Energy Corp. 516 17,222
Philadelphia Suburban Corp. 502 11,640
Piedmont Natural Gas Co., Inc. 454 13,904
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
55
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SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
PUBLIC UTLITIES - 4.48% (CONTINUED)
Primus Telecommunications Group Inc.* 366 3,477
Public Service Co. of New Mexico 510 13,196
RGS Energy Group, Inc 518 14,601
Rural Cellular Corp. 140 9,538
Sierra Pacific Resources* 1,146 20,628
SJW Corp. 29 3,444
South Jersey Industries, Inc. 166 4,845
Southern Union Co.* 455 9,015
Southwest Gas Corp. 457 9,568
Southwestern Energy Co. 366 3,203
Talk.com Inc. 860 3,789
UGI Corp.* 397 9,627
UIL Holding Corporation 209 10,750
Unisource Energy Corporation* 446 7,303
US LEC Corporation 143 1,224
Vectren Corporation 896 18,200
Viatel, Inc.* 731 7,493
Washington Gas Light Company* 679 18,248
WebLink Wireless Inc. - Class A* 678 5,212
Western Resources, Inc. 1,003 21,690
WPS Resources Corporation 387 12,674
--------------
712,514
--------------
TECHNOLOGY - 18.30%
3Dfx Interactive Inc.* 311 1,516
3DO Co. (The)* 372 2,488
Accrue Software Inc.* 314 3,748
ACT Manufacturing, Inc.* 156 8,229
Actel Corporation* 314 11,284
Actuate Corporation* 822 28,398
ACTV, Inc.* 470 6,463
Adaptive Broadband Corporation* 547 10,667
ADE Corporation* 139 2,847
Adept Technology, Inc.* 123 6,465
Advanced Digital Information
Corporation* 751 11,406
Advanced Energy Industries, Inc.* 164 5,412
Advantage Learning Systems Inc.* 135 4,733
Advent Software, Inc.* 379 26,483
Agency.com Ltd.* 87 1,300
AirNet Communcations Corporation* 81 1,807
Alaska Communications Systems
Group, Inc.* 148 944
Allaire Corporation* 330 $ 2,805
Alliance Semiconductor Corporation* 382 7,592
American Telesource International
Inc.* 814 1,882
ANADIGICS, Inc.* 435 9,624
Analogic Corporation 91 3,498
Analysts International Corporation 302 2,180
Anaren Microwave, Inc.* 159 21,564
Anixter International Inc.* 311 9,058
AnswerThink Consulting Group Inc.* 485 7,881
Aperian, Inc.* 178 1,133
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 18.30% (CONTINUED)
Apex Inc.* 628 34,619
Applied Science & Technology, Inc.* 165 2,434
AppliedTheory Corporation* 98 600
AremisSoft Corporation* 143 5,363
Arguss Communications Group* 166 3,393
Artesyn Technologies Inc* 466 13,572
Aspen Technology, Inc.* 380 17,148
Asyst Technologies, Inc.* 437 8,849
ATMI Inc.* 318 7,433
Avant! Corporation* 570 10,403
Avid Technology, Inc.* 337 4,718
AVT Corporation* 377 2,097
Aware, Inc.* 243 9,356
AXENT Technologies Inc.* 420 9,056
AXT Inc.* 240 10,035
Bel Fuse, Inc. 124 4,774
Bell & Howell Co.* 217 4,747
Benchmark Electronics, Inc.* 238 12,376
BindView Development Corporation* 541 4,091
Black Box Corp.* 279 13,008
Blaze Software Inc.* 46 581
Bluestone Software Inc.* 191 3,319
Bottomline Technologies Inc.* 106 3,955
Braun Consulting Inc.* 126 2,496
Breakaway Solutions Inc.* 147 1,309
Brio Technology Inc.* 183 1,933
Broadbase Software Inc.* 455 6,171
Brooks Automation, Inc.* 243 8,049
Brooktrout Technology, Inc.* 178 5,863
BSQUARE Corporation* 165 2,558
Cable Design Technologies Corporation* 624 15,171
CACI International Inc.* 146 3,130
Caldera Systems Inc.* 72 295
California Amplifier, Inc.* 174 4,002
Caliper Technologies Corporation* 64 3,708
Cambridge Technology Partners Inc.* 765 3,347
Caminus Corporation* 64 2,544
Carreker Corporation* 142 2,769
C-bridge Internet Solutions Inc.* 59 1,106
CCC Information Services Group Inc.* 325 2,620
C-Cube Microsystems Inc.* 593 $ 12,157
Celeritek, Inc.* 136 5,126
Centillium Communications Inc.* 56 5,376
Cerner Corporation* 362 16,810
Checkpoint Systems, Inc.* 419 3,169
Chordiant Software, Inc.* 66 512
CIBER, Inc.* 672 5,544
Cirrus Logic, Inc.* 811 32,693
Clarent Corporation* 281 11,064
Clarus Corporation* 205 4,677
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
56
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 18.30% (CONTINUED)
Click2Learn.com Inc.* 134 1,968
Cobalt Networks Inc.* 407 23,555
Cognizant Technology Solutions
Corporation* 88 3,432
Com21 Inc.* 319 4,307
Complete Business Solutions Inc.* 378 5,103
Computer Horizons Corp.* 462 3,147
Computer Network Technology
Corporation* 350 12,031
Concord Communications Inc.* 238 6,307
Concurrent Computer Corporation* 759 14,421
Cope Inc.* 23 896
Corsair Communications Inc.* 258 2,016
Crossroads Systems Inc.* 131 1,114
CTC Communications Group Inc.* 199 4,030
Cylink Corporation* 319 3,330
Cymer, Inc* 424 13,012
Cysive Inc.* 49 328
Daleen Technologies Inc.* 142 2,103
Data Return Corporation* 182 3,686
Datastream Systems, Inc.* 237 3,051
Davox Corporation* 150 1,509
DDi Corporation* 165 7,301
Deltathree.Com Inc.* 133 482
Deltek Systems Inc.* 130 995
Dendrite International, Inc.* 442 11,851
Digimarc Corporation* 120 2,235
Digital Impact Inc.* 107 706
Digital Island, Inc.* 943 17,681
Digital River Inc.* 281 1,809
Digitas Inc.* 133 2,361
Dionex Corp.* 322 8,895
Documentum, Inc.* 231 18,754
Dot Hill Systems Corporation* 162 1,053
DSET Corporation* 138 2,846
DSL.net Inc.* 400 1,225
DSP Group, Inc.* 386 14,427
DuPont Photomasks, Inc.* 70 4,113
Elantec Semiconductor, Inc.* 285 28,393
Electric Lightwave Inc. Class A* 132 1,122
Electro Scientific Industries, Inc.* 390 13,699
Electroglas, Inc.* 301 5,136
eLoyalty Corporation* 686 $ 8,747
eMachines Inc.* 296 305
eMagin Corporation* 294 3,158
Embarcadero Technologies Inc.* 59 3,031
EMCORE Corporation* 350 14,552
e-MedSoft.com* 555 1,457
EpicEdge Inc.* 135 371
ePlus Inc.* 73 1,497
ePresence Inc.* 341 2,302
Eprise Corporation* 62 535
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 18.30% (CONTINUED)
ESS Technology, Inc.* 381 5,453
Exar Corp.* 272 32,912
Excalibur Technologies Corp.* 160 10,750
Excel Technology, Inc.* 130 4,168
eXcelon Corporation* 371 4,591
Exchange Applications Inc.* 342 1,550
Extended Systems Inc.* 106 5,698
Extensity Inc.* 60 1,260
F5 Networks Inc.* 245 8,330
FactSet Research Systems Inc. 294 11,054
FEI Company* 204 4,424
FiberNet Telecom Group, Inc.* 113 1,914
FileNet Corp.* 497 9,039
FirePond Inc.* 71 1,030
FSI International, Inc.* 367 5,230
FutureLink Corporation* 516 1,580
Gadzoox Networks Inc.* 136 969
GaSonics International Corporation* 190 2,328
General Semiconductor Inc.* 515 6,277
GenRad, Inc.* 393 4,323
Geoworks* 176 1,298
Gerber Scientific, Inc. 286 2,467
Glenayre Technologies, Inc.* 939 10,212
Globix Corporation 243 5,665
Go2Net, Inc.* 398 21,598
Great American Financial Resources
Inc. 105 1,923
Great Plains Software Inc. 163 4,584
GRIC Communications Inc.* 67 486
Helix Technology Corp. 330 9,859
Hi/fn Inc. 99 6,744
HNC Software Inc. 364 29,780
Hutchinson Technology Inc.* 362 7,625
Hypercom Corporation* 185 1,919
Hyperion Solutions Corporation* 474 12,265
iBasis Inc.* 158 2,508
Ibis Technology Corp. 121 4,394
Identix Inc.* 332 4,034
iGate Capital Corporation 504 2,709
IKON Office Solutions Inc.* 2,183 8,596
Imation Corporation* 522 9,722
Immersion Corporation* 184 $ 2,852
IMRglobal Corporation* 287 3,336
InaCom Corp. 664 40
InFocus Corporation* 337 17,861
Infogrames Inc.* 64 461
Informatica Corporation* 348 32,451
Information Architects Corporation* 300 994
Information International, Inc.* 199 970
Inforte Corporation* 29 1,019
Inprise Corporation* 801 4,280
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
57
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 18.30% (CONTINUED)
Integrated Circuit Systems, Inc.* 185 3,423
Integrated Silicon Solution, Inc.* 347 4,923
Intelect Communications Systems Ltd. 1,107 1,591
InteliData Technologies Corporation 560 2,931
Interact Commerce Corporation* 206 2,253
Interactive Intelligence Inc.* 63 2,477
InterDigital Communications Corp.* 774 10,836
Intergraph Corp.* 643 4,622
Interlink Electronics* 162 3,139
Interlogix Inc.* 124 1,645
International FiberCom, Inc. 382 5,587
Inter-Tel, Inc.* 304 3,458
InterTrust Technologies Corporation* 891 10,748
InterVoice-Brite Inc.* 469 4,925
InterWorld Corporation* 267 1,018
Interwoven, Inc.* 494 55,824
IntraNet Solutions, Inc.* 226 11,300
Intraware Inc. 208 1,554
Intrusion.com Inc.* 220 2,613
Iomega Corporation* 3,957 19,785
ITXC Corp.* 89 1,302
IXYS Corporation* 68 1,777
J. D. Edwards & Company* 778 20,131
JDA Software Group, Inc. 306 3,902
JNI Corporation 88 7,832
Keithley Instruments, Inc. 116 8,120
Keynote Systems Inc. 233 6,233
Kronos Inc.* 171 5,130
Kulicke & Soffa Industries, Inc.* 704 9,372
Legato Systems, Inc. 1,268 17,039
Level 8 Systems, Inc.* 83 1,525
LightPath Technologies, Inc.* 173 8,218
Lightspan, Inc. 109 266
LivePerson Inc.* 60 263
Loudeye Technologies Inc.* 65 443
LTX Corp. 680 12,878
Manhattan Associates Inc. 63 3,859
Manugistics Group, Inc.* 333 32,676
MapInfo Corporation 200 6,247
Marimba, Inc.* 208 2,542
MatrixOne, Inc. 79 $ 3,160
Mattson Technology, Inc.* 225 3,347
Maxtor Corporation* 926 9,723
McAfee.com Corporation 89 1,324
MCK Communications Inc.* 140 3,168
Media 100 Inc.* 152 1,672
Mediaplex, Inc.* 173 714
MEMC Electronic Materials, Inc.* 486 6,257
Mentor Graphics Corporation* 956 22,526
Mercator Software Inc. 359 5,946
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 18.30% (CONTINUED)
Mercury Computer Systems, Inc. 298 8,288
MetaCreations Corp. 319 3,589
MetaSolv Software, Inc.* 139 5,682
Metawave Communications 91 1,666
Methode Electronics, Inc.* 520 23,043
Metricom, Inc. 306 7,880
Micron Electronics, Inc.* 512 4,608
MICROS Systems, Inc.* 240 3,615
Microsemi Corporation 153 5,833
MicroStrategy, Inc.* 383 10,461
Microvision, Inc.* 155 5,919
Midway Games Inc. 428 2,996
MIPS Technologies, Inc.* 561 25,806
MKS Instruments, Inc.* 73 1,998
MMC Networks, Inc.* 423 53,510
MRV Communications, Inc.* 726 32,897
MTI Technology Corporation 465 1,773
Mynd Corporation* 520 7,020
National Data Corporation* 479 15,717
Natural MicroSystems Corporation* 482 25,930
NEON Systems Inc.* 59 649
Net Perceptions Inc.* 189 892
Netcentives Inc.* 336 2,573
Netegrity Inc.* 378 26,460
netGuru Inc.* 67 1,139
NetIQ Corporation* 347 22,794
NetManage, Inc.* 773 1,643
NetObjects Inc.* 142 444
Netopia Inc.* 193 2,123
Netpliance Inc.* 114 171
NetScout Systems Inc.* 187 4,441
NETsilicon Inc.* 89 1,863
Netsol International* 51 771
NetSolve, Incorporated* 86 613
Network Access Solutions Corp.* 239 986
Network Equipment Technologies, Inc.* 313 3,345
Network Peripherals Inc.* 226 3,842
NetZero Inc.* 458 973
New Era of Networks Inc. 369 8,977
NHancement Technologies Inc.* 135 2,295
Niku Corporation* 121 $ 2,949
North Pittsburgh Systems, Inc. 219 2,984
Novadigm, Inc.* 175 2,710
Nuance Communications* 64 7,788
Numerical Technologies Inc.* 82 2,363
Nx Networks Inc. 500 3,313
NYFIX Inc.* 307 13,738
Oak Technology, Inc.* 600 16,425
Objective Systems Integrators, Inc.* 288 2,502
Onyx Software Corporation* 296 6,105
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
58
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 18.30% (CONTINUED)
Open Market, Inc.* 519 3,260
Optical Cable Corporation* 53 1,280
Opus360 Corporation* 109 252
Osicom Technologies, Inc. 149 3,688
OTG Software Inc.* 74 3,025
Packeteer Inc.* 239 9,067
Pac-West Telecomm, Inc 256 2,336
Paradyne Networks Inc.* 239 1,292
Park Electrochemical Corp. 137 7,621
PAXAR Corp.* 576 5,148
P-COM, Inc. 994 6,585
PC-Tel, Inc.* 181 4,208
PEC Solutions Inc.* 45 290
Pericom Semiconductor Corporation* 304 11,419
Perot Systems Corporation - Class A* 842 9,052
Persistence Software, Inc* 156 1,706
Phoenix Technologies Ltd.* 334 5,323
Photogen Technologies, Inc.* 132 561
Photon Dynamics, Inc.* 168 6,342
Photronics, Inc. 295 6,435
Pinnacle Systems, Inc.* 631 7,099
Pioneer-Standard Electronics, Inc. 396 5,371
Pixelworks Inc.* 83 3,958
Plantronics, Inc.* 717 27,246
Plexus Corp. 514 36,237
PLX Technology, Inc. 223 5,993
Power Integrations Inc.* 398 5,547
Preview Systems Inc.* 55 521
PRI Automation, Inc. 293 5,347
Primus Knowledge Solutions, Inc.* 173 2,563
Procom Technology Inc.* 70 2,069
Progress Software Corp.* 493 6,717
Project Software & Development, Inc.* 193 3,001
Proxim, Inc. 368 16,376
Puma Technology, Inc.* 455 9,242
QRS Corporation 186 2,802
Quantum Corporation - Hard Disc Drive
Group 1,234 12,263
QuickLogic Corporation* 282 4,653
Quintus Corporation* 255 2,183
Radiant Systems, Inc.* 238 $ 5,087
RadiSys Corp.* 207 10,466
Rainbow Technologies, Inc.* 150 5,306
Ramp Networks Inc.* 211 745
Razorfish Inc. Class A 164 1,694
Remedy Corp.* 380 7,173
Research Frontiers Inc.* 146 2,801
Retek Inc.* 95 5,035
Robotic Vision Systems, Inc. 502 2,996
Rudolph Technologies Inc.* 73 2,441
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 18.30% (CONTINUED)
S3 Incorporated* 1,314 13,551
Saba Software, Inc.* 56 1,568
Saga Systems Inc.* 425 4,463
Sagent Technology Inc. 225 1,702
Sanchez Computer Associates Inc. 188 2,914
SBA Communications Corporation* 347 14,552
SBS Technologies, Inc.* 168 3,906
Scientific Learning Corp.* 50 272
SCM Microsystems Inc.* 188 7,132
SeaChange International Inc. 246 8,210
Secure Computing Corp.* 361 9,409
Selectica, Inc. 60 2,393
Semitool, Inc. 221 2,832
Sensormatic Electronics Corporation* 1,031 15,465
Sequoia Software Corporation* 59 382
SERENA Software, Inc.* 223 10,272
Silicon Graphics, Inc.* 2,702 11,146
Silicon Image Inc.* 460 11,414
Silicon Valley Group, Inc.* 487 12,814
SilverStream Software Inc.* 171 5,151
Sipex Corp.* 320 13,460
SmartDisk Corporation 99 1,423
SmartServ Online, Inc.* 58 2,074
Softnet Systems, Inc.* 411 2,453
Software Technologies Corp. 59 1,351
Somera Communciations Inc.* 426 4,047
SonaSight Inc.* 136 2,542
Sonic Foundry Inc.* 151 1,340
SonicWALL Inc. 332 9,462
SpectraLink Corporation* 173 1,633
Spectra-Physics Lasers Inc.* 51 2,732
SpeedFam-IPEC, Inc.* 365 4,175
SPSS Inc.* 125 3,352
Standard Microsystems Corporation 203 4,428
Stanford Microdevices Inc.* 59 3,157
StarBase Corporation* 634 3,606
Stoneridge Inc. 184 1,771
Storage Technology Corporation 1,372 18,608
Structural Dynamics Research Corp. 526 8,613
Superior TeleCom Inc.* 134 804
Supertex, Inc.* 112 $ 5,642
SVI Holdings, Inc.* 199 983
Sykes Enterprises, Inc.* 353 1,897
Symmetricom, Inc.* 331 5,172
Systems & Computer Technology Corp.* 475 8,342
Take-Two Interactive Software, Inc.* 303 3,806
Tanning Technology Corporation* 179 2,461
Technitrol, Inc.* 171 17,271
Technology Solutions Co. 642 1,605
Telaxis Communications Corporation* 59 360
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
59
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 18.30% (CONTINUED)
TelCom Semiconductor, Inc.* 237 3,525
Teleflex Inc.* 557 19,147
Telocity Delaware, Inc.* 159 522
Telxon Corporation* 215 3,763
TenFold Corporation 194 861
The InterCept Group Inc. 118 2,751
The Trizetto Group Inc. 189 2,930
Therma-Wave Inc.* 159 4,571
T-HQ Inc.* 279 6,487
Three-Five Systems, Inc.* 309 9,038
Tollgrade Communications, Inc.* 169 23,459
Transaction Systems Architects, Inc.* 482 7,833
Tricord Systems, Inc.* 247 3,690
Tumbleweed Communications Corp. 125 6,375
Tut Systems, Inc.* 221 19,075
U.S. Wireless Corporation* 131 2,080
Ulticom Inc.* 59 2,780
Ultratech Stepper, Inc.* 313 5,028
Unify Corp.* 237 933
Unigraphics Solutions Inc.* 68 1,335
Universal Access Inc.* 163 1,915
ValuClick Inc.* 57 367
Varian Inc.* 470 20,239
Varian Medical Systems* 456 20,606
Varian Semiconductor Equipment
Associates Inc.* 452 16,922
Veeco Instruments Inc.* 344 36,555
Verity, Inc.* 399 14,239
Versata, Inc.* 58 1,537
Vertel Corporation* 402 3,719
Vertex Interactive, Inc.* 170 3,113
VIA Net.Works Inc. 216 2,079
Viador Inc.* 158 1,383
viaLink Company* 247 2,192
Viant Corporation* 551 3,237
ViaSat Inc.* 226 5,057
Viasystems Group, Inc.* 638 10,846
Vicor Corp.* 286 15,516
Visual Networks Inc.* 367 2,408
Voyager.net Inc. 132 796
Vyyo Inc.* 104 $ 3,120
Wave Systems Corp.* 676 11,323
Websense Inc.* 59 1,405
WebTrends Corporation* 189 7,064
Westell Technologies, Inc. 257 3,309
Western Digital Corp. 2,037 11,967
White Electronic Designs Corporation* 213 2,556
World Access Inc.* 886 4,790
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 18.30% (CONTINUED)
Xircom, Inc.* 388 9,797
Xpedior Inc.* 124 403
X-Rite, Incorporated* 246 2,153
Xybernaut Corporation* 452 2,684
Zebra Technologies Corporation* 373 17,927
ZixIt Corporation* 242 7,381
Zoran Corporation* 205 9,994
Zygo Corporation* 187 16,269
--------------
2,906,787
--------------
TRANSPORTATION - 1.53%
Airborne Freight Corporation 716 7,294
AirTran Holdings Inc.* 843 3,741
Alaska Air Group, Inc.* 361 8,664
Alexander & Baldwin, Inc. 608 15,808
America West Holdings Corp.* 514 6,264
American Freightways Corporation* 318 5,048
Arkansas Best Corporation* 227 3,490
Arnold Industries, Inc. 297 5,012
Atlantic Coast Airlines Inc.* 217 6,985
Atlas Air, Inc.* 225 9,506
Circle International Group Inc.* 201 6,080
CNF, Inc. 709 15,775
EGL Inc.* 204 6,171
Forward Air Corporation* 199 7,002
Fritz Companies, Inc.* 308 3,696
Frontier Airlines, Inc.* 257 4,995
Heartland Express, Inc. 214 3,718
Hunt (J.B.) Transport Services, Inc.* 253 3,226
Interpool, Inc. 180 2,059
Kirby Corp.* 358 7,026
Knight Transportation, Inc. 101 1,572
Landstar System, Inc.* 131 5,846
M.S. Carriers, Inc.* 127 1,984
Mesa Air Group, Inc.* 494 2,702
Mesaba Holdings, Inc.* 179 1,924
Midwest Express Holdings, Inc.* 205 4,126
Overseas Shipholding Group, Inc. 369 10,101
Roadway Express Inc. 181 3,247
Rollins Truck Leasing Corp. 695 4,387
Ryder System, Inc. 869 16,022
SkyWest, Inc.* 314 16,095
Swift Transportation Co., Inc.* 628 $ 8,203
USFreightways Corp. 389 8,825
Werner Enterprises, Inc. 407 4,782
Wisconsin Central Transportation
Corp.* 749 7,911
XTRA Corporation* 176 7,821
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
60
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
RUSSELL 2000 SMALL CAP INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TRANSPORTATION - 1.53% (CONTINUED)
Yellow Corporation 369 5,584
--------------
242,692
--------------
Total Common Stocks
(cost $14,202,816) 13,722,745
--------------
PREFERRED STOCK - .01%
</TABLE>
<TABLE>
<S> <C> <C>
Prison Realty Trust 12% 1,644
Total Preferred Stock
(cost $0) 1,644
--------------
UNIT INVESTMENT TRUST - 3.20%
iShares Russell 2000 Index Fund* 4,824 499,949
S&P Mid-Cap 400 Depositary Receipts 83 8,155
--------------
Total Unit Investment Trust
(cost $508,404) 508,104
--------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
------------------
SHORT-TERM INVESTMENTS(3) - 10.16%
VARIABLE RATE DEMAND NOTES(1) - 6.93%
American Family (6.2352% due 12/31/31) $ 494,078 $ 494,078
Firstar Bank (6.37% due 12/31/31) 607,215 607,215
--------------
1,101,293
--------------
U.S. TREASURY BILL - 3.23%
U.S. Treasury Bill 0.00% due 12/21/00) 513,009 513,009
--------------
Total Short-Term Investments
(cost $1,614,302) 1,614,302
--------------
TOTAL INVESTMENTS - 99.74%
(cost $16,307,651)(2) 15,846,795
--------------
OTHER ASSETS AND LIABILITIES - .26% 41,990
--------------
TOTAL NET ASSETS - 100% $ 15,888,785
==============
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
(2) Represents cost for income tax purposes which is substantially the same for
financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of September 30, 2000 was $2,113,678 and
($2,574,534), respectively.
(3) Securities and other current assets with an aggregate value of $1,582,200
have been segregated with the custodian or designated to cover margin
requirements for the open futures contracts as of September 30, 2000:
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
<S> <C> <C>
-------------------------------------------------------------------
Russell 2000 Index (12/00) 6 $(25,550)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
61
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS NASDAQ-100 INDEX FUND
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
COMMON STOCKS - 68.73%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
BASIC INDUSTRIES - .19%
Sigma-Aldrich 417 $ 13,761
Smurfit-Stone Container Corp.* 937 11,244
--------------
25,005
--------------
CAPITAL GOODS - 1.23%
Maxim Integrated Products* 1,708 137,387
Miller (Herman) 273 8,753
PACCAR Inc. 385 14,269
--------------
160,409
--------------
CONSUMER NON-DURABLES - .29%
Cintas Corporation 881 38,379
--------------
38,379
--------------
CONSUMER SERVICES - 5.58%
Adelphia Communications* 533 14,691
Amazon.Com Inc.* 994 38,207
Apollo Group* 311 12,401
At Home Corp.* 1,249 17,642
Bed Bath & Beyond* 1,656 40,391
CMGI Inc.* 1,296 36,207
Comcast Class A* 1,804 73,851
Costco Wholesale Corp.* 1,028 35,916
Dollar Tree Stores* 372 15,089
eBay Inc.* 846 58,110
Gemstar-TV Guide International Inc.* 1,850 161,296
PanAmSat Corp.* 883 28,201
Staples Inc.* 1,385 19,650
Starbucks Corp.* 1,120 44,870
USA Networks Inc.* 1,500 32,906
Yahoo! Inc.* 1,118 101,738
--------------
731,166
--------------
HEALTH CARE - 4.08%
Amgen* 2,094 146,219
Biogen, Inc.* 810 49,410
Biomet, Inc. 1,000 35,000
Chiron Corp.* 1,115 50,175
Genzyme Corp.* 463 31,571
Immunex Corp.* 3,001 130,544
MedImmune Inc.* 957 73,928
PacifiCare Health Systems* 160 5,570
Quintiles Transnational* 707 11,268
--------------
533,685
--------------
PUBLIC UTILITIES - 3.89%
McLeodUSA Inc.* 1,998 28,596
NEXTEL Communications* 4,050 189,338
Nextlink Communications* 1,120 39,410
VoiceStream Wireless Corporation* 990 $ 114,902
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
PUBLIC UTILITIES - 3.89% (CONTINUED)
WorldCom Inc.* 4,500 136,688
--------------
508,934
--------------
TECHNOLOGY - 53.41%
3Com Corp.* 762 14,621
Adaptec, Inc.* 375 7,500
ADC Telecommunications* 3,772 101,431
Adobe Systems 513 79,643
Altera Corp.* 2,462 117,561
American Power Conversion* 1,111 21,317
Apple Computer* 1,986 51,140
Applied Materials* 1,800 106,763
Applied Micro Circuits Corp.* 605 125,273
Atmel Corp.* 1,452 22,052
BMC Software* 816 15,606
BroadVision Inc.* 1,181 30,337
CIENA Corporation* 1,458 179,061
Cisco Systems* 10,800 596,696
Citrix Systems* 944 18,939
CNET Networks Inc.* 368 8,964
Compuware Corp.* 976 8,174
Comverse Technology* 694 74,952
Concord EFS Inc.* 1,018 36,155
Conexant Systems* 1,043 43,676
Dell Computer* 4,143 127,656
Echostar Communications Corp.* 986 52,012
Electronic Arts* 568 28,045
Fiserv Inc.* 673 40,296
Global Crossing* 4,055 125,705
I2 Technologies Inc.* 915 171,162
Intel Corp. 10,140 421,444
Intuit, Inc.* 1,128 64,296
JDS Uniphase Corp.* 3,850 364,547
Juniper Networks Inc.* 913 199,890
KLA-Tencor Corp.* 976 40,199
Legato Systems Inc.* 406 5,456
Level 3 Communications Inc.* 1,112 85,763
Linear Technology Corp. 1,825 118,169
Lycos Inc* 588 40,434
Metromedia Fiber Network Inc.* 2,266 55,092
Microchip Technology* 419 13,837
Microsoft Corp.* 7,850 473,453
Molex Inc. 423 23,027
Network Appliance* 1,398 178,070
Network Associates Inc.* 634 14,344
Novell Inc.* 1,731 17,202
NTL Incorporated* 1,204 55,760
Oracle Corp.* 5,150 405,563
Palm Inc.* 0 11
Parametric Technology* 1,640 17,938
Paychex Inc. 1,543 $ 81,008
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
62
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NASDAQ-100 INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
TECHNOLOGY - 53.41% (CONTINUED)
PeopleSoft Inc.* 1,666 46,544
PMC - Sierra Inc.* 760 163,590
QLogic Corp.* 398 35,024
QUALCOMM Inc.* 3,875 276,094
RealNetworks Inc.* 634 25,202
RF Micro Devices Inc.* 796 25,472
Sanmina Corp.* 690 64,601
SDL Inc.* 380 117,539
Siebel Systems, Inc.* 2,004 223,070
Sun Microsystems* 3,014 351,885
Synopsys Inc.* 357 13,521
Telefonaktiebolaget LM Ericsson 5,180 76,729
Tellabs, Inc.* 1,012 48,323
VeriSign Inc.* 790 160,024
Veritas Software* 1,765 250,630
Vitesse Semiconductor* 848 75,419
Xilinx, Inc.* 1,871 160,204
--------------
6,994,111
--------------
TRANSPORTATION - .06%
Northwest Airlines Corp.* 305 7,492
--------------
7,492
--------------
Total Common Stocks
(cost $10,964,052) 8,999,181
--------------
UNIT INVESTMENT TRUST - 4.47%
Nasdaq 100 Shares* 6,602 585,515
--------------
Total Unit Investment Trust
(cost $606,550) 585,515
--------------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
SHORT-TERM INVESTMENTS(3) - 24.68%
VARIABLE RATE DEMAND NOTES(1) - 14.43%
American Family (6.2352% due 12/31/31) $ 378,541 $ 378,541
Firstar Bank (6.37% due 12/31/31) 294,969 294,970
Sara Lee (6.22% due 12/31/31) 239,712 239,712
Wisconsin Corp Central Credit Union
(6.29% due 12/31/31) 478,759 478,759
Wisconsin Electric (6.2352% due
12/31/31) 497,236 497,236
--------------
1,889,218
--------------
U.S. TREASURY BILL - 10.25%
U.S. Treasury Bill (0.00% due
12/21/00) 1,360,000 1,341,723
--------------
Total Short-Term Investments
(Cost $3,230,941) 3,230,941
--------------
TOTAL INVESTMENTS - 97.88%
(cost $14,801,543)(2) 12,815,637
--------------
OTHER ASSETS AND LIABILITIES - 2.12% 276,943
--------------
TOTAL NET ASSETS - 100% $ 13,092,580
==============
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
(2) Represents cost for income tax purposes which is substantially the same for
financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of September 30, 2000 was $793,213 and
($2,779,119), respectively.
(3) Securities and other assets with an aggregate value of $3,114,060 have been
segregated with the custodian or designated to cover margin requirements
for the open futures contracts as of September 30, 2000:
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
<S> <C> <C>
-------------------------------------------------------------------
Nasdaq-100 Index (12/00) 8 $(282,200)
Nasdaq-100 Index E-Mini (12/00) 3 (8,940)
---------
$(291,140)
=========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
63
<PAGE>
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SCHEDULE OF INVESTMENTS BALANCED INDEX FUND
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
COMMON STOCKS - 55.23%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
BASIC INDUSTRIES - 1.05%
Air Products & Chemicals 343 $ 12,348
Alcan Aluminium Ltd. 327 9,463
Alcoa Inc. 1,293 32,729
Allegheny Technologies Inc. 125 2,266
Avery Dennison Corp. 168 7,791
Ball Corp. 44 1,394
Barrick Gold Corp. 592 9,028
Bemis Company 80 2,570
Bethlehem Steel* 197 591
Boise Cascade 86 2,284
Crown Cork & Seal 192 2,052
Dow Chemical 1,012 25,237
DuPont (E.I.) 1,567 64,933
Eastman Chemical 115 4,248
Engelhard Corp. 191 3,104
FMC Corp.* 45 3,018
Fort James Corp. 308 9,413
Freeport-McMoran Copper & Gold* 239 2,106
Georgia-Pacific Group 255 5,993
Goodrich (B.F.) 152 5,957
Grace (W.R.) & Co.* 101 694
Great Lakes Chemical 81 2,374
Hercules, Inc. 160 2,260
Homestake Mining 390 2,023
Inco, Ltd.* 272 4,386
International Paper 723 20,741
Louisiana Pacific 156 1,433
Mead Corp. 154 3,600
Millipore Corp. 69 3,342
Newmont Mining 251 4,267
Nucor Corp. 127 3,826
Owens-Illinois* 219 2,026
Pactiv Corporation* 253 2,830
Phelps Dodge 118 4,927
Placer Dome Inc. 490 4,624
Potlatch Corp. 43 1,360
PPG Industries 261 10,358
Praxair, Inc. 236 8,821
Rohm & Haas 326 9,474
Sealed Air Corp.* 125 5,656
Sherwin-Williams 245 5,237
Sigma-Aldrich 128 4,224
Springs Industries Inc. 27 761
Temple-Inland 78 2,954
Union Carbide 202 7,626
USX-U.S. Steel Group 132 2,005
Vulcan Materials 151 6,068
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
BASIC INDUSTRIES - 1.05% (CONTINUED)
Westvaco Corp. 150 $ 4,003
Weyerhaeuser Corp. 349 14,091
Willamette Industries 166 4,648
Worthington Ind. 129 1,209
--------------
358,373
--------------
CAPITAL GOODS - 5.16%
Allied Waste Industries* 283 2,600
Armstrong World 60 716
Boeing Company 1,357 85,491
Briggs & Stratton 33 1,248
Caterpillar Inc. 522 17,618
Cooper Industries 139 4,900
Corning Inc. 440 130,680
Crane Company 91 2,082
Cummins Engine Co., Inc. 62 1,856
Danaher Corp. 212 10,547
Deere & Co. 350 11,638
Dover Corp. 304 14,269
Emerson Electric 639 42,813
Fluor Corp. 114 3,420
General Dynamics 300 18,844
General Electric 14,804 854,004
Grainger (W.W.) Inc. 141 3,710
Honeywell International Inc. 1,194 42,536
Illinois Tool Works 451 25,200
Ingersoll-Rand 242 8,198
ITT Industries, Inc. 132 4,282
Lockheed Martin Corp. 640 21,094
Masco Corp. 671 12,497
Maxim Integrated Products* 423 34,025
McDermott International 90 990
Minnesota Mining & Manufacturing 592 53,946
Navistar International Corp.* 93 2,784
Northrop Grumman Corp. 104 9,451
PACCAR Inc. 114 4,225
Pall Corp. 185 3,688
Parker-Hannifin 168 5,670
PerkinElmer, Inc. 74 7,724
Pitney-Bowes 386 15,223
Raytheon Company 509 14,475
Rockwell International 281 8,500
Solectron Corp.* 892 41,144
Textron Inc. 216 9,963
Thermo Electron* 259 6,734
Thomas & Betts 87 1,517
Timken Co. 91 1,246
TRW Inc. 185 7,516
Tyco International 2,526 131,036
United Technologies 704 48,752
Waste Management 929 16,199
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
64
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BALANCED INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
CAPITAL GOODS - 5.16% (CONTINUED)
Xerox Corp. 997 $ 15,017
--------------
1,760,068
--------------
CONSUMER DURABLES - .65%
Black & Decker Corp. 127 4,342
Brunswick Corp. 131 2,391
Centex Corp. 89 2,859
Cooper Tire & Rubber 110 1,107
Dana Corp. 228 4,902
Delphi Automotive Systems 842 12,735
Eaton Corp. 109 6,717
Ford Motor 2,805 71,002
General Motors 801 52,065
Genuine Parts 265 5,052
Goodyear Tire & Rubber 234 4,212
Harley-Davidson 454 21,735
Johnson Controls 128 6,808
Kaufman & Broad Home Corp. 72 1,940
Leggett & Platt 294 4,649
Maytag Corp. 117 3,634
Pulte Corp. 62 2,046
Snap-On Inc. 88 2,074
Stanley Works 131 3,021
Visteon Corp. 195 2,949
Whirlpool Corp. 109 4,236
--------------
220,476
--------------
CONSUMER NON DURABLES - 3.36%
Alberto-Culver 83 2,391
Anheuser-Busch 1,352 57,207
Archer-Daniels-Midland 946 8,160
Avon Products 355 14,511
Bestfoods* 411 29,900
Brown-Forman Corp. 103 5,639
Campbell Soup 632 16,353
Clorox Co. 351 13,886
Coca Cola Co. 3,704 204,183
Coca-Cola Enterprises 629 10,025
Colgate-Palmolive 863 40,734
ConAgra Foods Inc. 794 15,930
Coors (Adolph) 55 3,475
Eastman Kodak 464 18,966
Fortune Brands, Inc. 237 6,281
General Mills 436 15,478
Gillette Co. 1,562 48,227
Hasbro Inc. 258 2,951
Heinz (H.J.) 527 19,532
Hershey Foods 205 11,096
International Flavors & Fragrances 154 2,811
Kellogg Co. 607 14,682
Kimberly-Clark 831 46,380
Liz Claiborne, Inc. 82 $ 3,157
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
CONSUMER NON DURABLES - 3.36%
(CONTINUED)
Mattel, Inc. 637 7,126
Nabisco Group Hldgs. 488 13,908
Newell Rubbermaid Inc. 399 9,102
NIKE Inc. 409 16,386
PepsiCo Inc. 2,156 99,176
Philip Morris 3,422 100,730
Polaroid Corp. 67 900
Procter & Gamble 1,957 131,119
Quaker Oats 196 15,509
Ralston-Ralston Purina Gp 459 10,873
Reebok International* 85 1,599
Russell Corp. 49 778
Sara Lee Corp. 1,301 26,427
Seagram Co. Ltd. 653 37,507
Tupperware Corp. 86 1,548
Unilever N.V. 855 41,254
UST Inc. 243 5,559
V.F. Corp. 171 4,222
Wrigley (Wm) Jr. 171 12,804
--------------
1,148,482
--------------
CONSUMER SERVICES - 6.44%
Albertson's 634 13,314
America Online* 3,438 184,793
American Greetings Class A 97 1,698
AutoZone Inc.* 200 4,538
Bed Bath & Beyond* 420 10,244
Best Buy Co., Inc.* 306 19,469
Carnival Corp. 904 22,261
Cendant Corporation* 1,079 11,734
Circuit City Group 304 6,992
Clear Channel Communications* 857 48,421
Comcast Class A Special* 1,343 54,979
Consolidated Stores* 166 2,241
Convergys Corp.* 229 8,902
Costco Wholesale Corp.* 669 23,373
CVS Corp. 584 27,047
Darden Restaurants 185 3,850
Deluxe Corp. 108 2,194
Dillard Inc. 140 1,488
Dollar General 492 8,241
Donnelley (R.R.) & Sons 182 4,470
Dow Jones & Co. 133 8,047
Ecolab Inc. 194 6,996
Federated Dept. Stores* 320 8,360
Gannett Co. 399 21,147
Gap (The) 1,273 25,619
Harcourt General Inc. 107 6,313
Harrah's Entertainment* 183 5,033
Hilton Hotels 551 $ 6,371
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
65
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SCHEDULE OF INVESTMENTS BALANCED INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
CONSUMER SERVICES - 6.44% (CONTINUED)
Home Depot 3,462 183,702
Interpublic Group 451 15,362
K mart* 720 4,320
Knight-Ridder Inc. 116 5,894
Kohl's Corp.* 488 28,152
Kroger Co.* 1,249 28,181
Limited, Inc. 643 14,186
Longs Drug Stores 59 1,128
Lowe's Cos. 572 25,669
Marriott International 359 13,081
May Dept. Stores 498 10,209
McDonald's Corp. 2,000 60,375
McGraw-Hill 291 18,497
Meredith Corp. 76 2,242
National Service Ind. 61 1,193
New York Times Class A 254 9,985
Nordstrom 201 3,128
Office Depot* 473 3,695
Omnicom Group 266 19,401
Penney (J.C.) 391 4,619
Qwest Communication International* 2,443 117,417
RadioShack Corp. 279 18,030
Sabre Holdings Corporation* 193 5,585
Safeway Inc.* 743 34,689
Sears, Roebuck & Co. 528 17,118
Staples Inc.* 725 10,286
Starbucks Corp.* 275 11,017
Supervalu Inc. 197 2,967
Sysco Corp. 499 23,110
Target Corp. 1,365 34,978
Tiffany & Co. 217 8,368
Time Warner Inc. 1,969 154,074
TJX Companies Inc. 449 10,103
Toys R Us Holding Cos.* 324 5,265
Tribune Co. 461 20,111
TRICON Global Restaurants* 221 6,768
Viacom Inc.* 2,282 133,497
Walgreen Co. 1,508 57,210
Wal-Mart Stores 6,669 320,946
Walt Disney Co. 3,109 118,919
Wendy's International 170 3,411
Winn-Dixie 216 3,105
Yahoo! Inc.* 813 73,983
Young & Rubicam Inc.* 108 5,344
--------------
2,197,455
--------------
ENERGY - 3.23%
Amerada Hess 136 9,104
Anadarko Petroleum 363 24,125
Apache Corp. 182 $ 10,761
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
ENERGY - 3.23% (CONTINUED)
Ashland Inc. 106 3,571
Baker Hughes 494 18,340
Burlington Resources 322 11,854
Chevron Corp. 976 83,204
Conoco Inc 934 25,160
Devon Energy Corp. 179 10,767
Exxon Mobil Corp. 5,209 464,252
Halliburton Co. 664 32,495
Kerr-McGee 141 9,341
Occidental Petroleum 552 12,041
Phillips Petroleum 380 23,845
Rowan Cos.* 140 4,060
Royal Dutch Petroleum 3,209 192,339
Schlumberger Ltd. 852 70,130
Sunoco Inc. 132 3,556
Texaco Inc. 826 43,365
Tosco Corp. 216 6,737
Transocean Sedco Forex Inc. 315 18,467
Unocal Corp. 363 12,861
USX-Marathon Group 467 13,251
--------------
1,103,626
--------------
FINANCE - 8.70%
AFLAC Inc. 397 25,433
Allstate Corp. 1,114 38,712
American Express 1,999 121,439
American General 372 29,016
American Int'l. Group 3,460 331,079
AmSouth Bancorporation 588 7,350
Aon Corp. 383 15,033
Associates First Capital 1,090 41,420
Bank of America Corp. 2,480 129,890
Bank of New York 1,104 61,893
Bank One Corp. 1,716 66,281
BB&T Corporation 586 17,653
Bear Stearns Cos. 166 10,458
Block H&R 147 5,448
Capital One Financial 293 20,528
Charles Schwab 2,038 72,349
Charter One Financial 330 8,036
Chase Manhattan 1,949 90,019
Chubb Corp. 262 20,731
CIGNA Corp. 244 25,474
Cincinnati Financial 241 8,556
CIT Group Inc. 394 6,895
Citigroup Inc. 6,733 364,003
Comerica Inc. 234 13,674
Conseco Inc. 487 3,713
Countrywide Credit Industries 170 6,418
Dun & Bradstreet Corp* 242 8,334
Fannie Mae 1,507 $ 107,751
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
66
<PAGE>
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BALANCED INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
FINANCE - 8.70% (CONTINUED)
Federal Home Loan Mtg. 1,040 56,225
Fifth Third Bancorp 695 37,443
First Union Corp. 1,467 47,219
Firstar Corporation 1,452 32,489
FleetBoston Financial Corp. 1,349 52,611
Franklin Resources Inc. 364 16,173
Golden West Financial 237 12,709
Hartford Financial Services Group 322 23,486
Household International 708 40,091
Huntington Bancshares 365 5,361
Jefferson-Pilot 154 10,453
KeyCorp 651 16,478
Lehman Brothers Holdings 181 26,743
Lincoln National 287 13,812
Loews Corp. 148 12,340
Marsh & McLennan 403 53,498
MBIA Inc. 147 10,455
MBNA Corp. 1,200 46,200
Mellon Financial Corp. 735 34,086
Merrill Lynch 1,160 76,560
MGIC Investment 158 9,658
Morgan (J.P.) & Co. 243 39,700
Morgan Stanley, Dean Witter & Co. 1,694 154,895
National City Corp. 907 20,067
Northern Trust Corp. 333 29,595
Old Kent Financial 205 5,932
PaineWebber Group 218 14,851
PNC Financial Services Group 435 28,275
Progressive Corp. 109 8,924
Providian Financial Corp. 213 27,051
Regions Financial Corp. 330 7,487
SAFECO Corp. 191 5,205
SouthTrust Corp. 252 7,922
St. Paul Cos. 317 15,632
State Street Corp. 241 31,330
Stilwell Financial 333 14,486
Summit Bancorp 263 9,074
SunTrust Banks 453 22,565
Synovus Financial 423 8,962
T. Rowe Price Associates 181 8,496
Torchmark Corp. 192 5,340
U.S. Bancorp 1,125 25,594
Union Planters 202 6,679
UNUMProvident Corp. 360 9,810
USA Education Inc. 234 11,276
Wachovia Corp. 303 17,176
Washington Mutual, Inc. 820 32,646
Wells Fargo & Co. 2,411 110,752
--------------
2,971,398
--------------
HEALTH CARE - 6.37%
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
HEALTH CARE - 6.37% (CONTINUED)
Abbott Labs 2,319 $ 110,297
Aetna Inc. 211 12,251
Allergan, Inc. 194 16,381
ALZA Corp. Class A* 154 13,321
American Home Products 1,952 110,410
Amgen* 1,536 107,256
Bard (C.R.) Inc. 76 3,211
Bausch & Lomb 79 3,076
Baxter International Inc. 434 34,639
Becton, Dickinson 378 9,993
Biogen, Inc.* 222 13,542
Biomet, Inc. 370 12,950
Boston Scientific* 610 10,027
Bristol-Myers Squibb 2,952 168,633
Cardinal Health, Inc. 412 36,333
Guidant Corp.* 459 32,446
HCA-The Healthcare Co. 834 30,962
HCR Manor Care* 153 2,400
Healthsouth Corp.* 577 4,688
Humana Inc.* 251 2,698
IMS Health Inc. 445 9,234
Johnson & Johnson 2,081 195,484
Lilly (Eli) & Co. 1,690 137,101
Mallinckrodt Inc. 101 4,608
McKesson HBOC Inc. 422 12,897
MedImmune Inc.* 312 24,102
Medtronic Inc. 1,791 92,796
Merck & Co. 3,441 256,139
Pfizer, Inc. 9,419 423,266
Pharmacia Corp. 1,899 114,296
Quintiles Transnational* 172 2,741
Schering-Plough 2,191 101,882
St Jude Medical* 125 6,375
Tenet Healthcare Corp.* 468 17,024
United Health Group Inc. 243 23,996
Watson Pharmaceuticals* 144 9,344
WellPoint Health Networks* 93 8,928
--------------
2,175,727
--------------
PUBLIC UTILITIES - 4.83%
AES Corp.* 684 46,854
ALLTEL Corp. 472 24,633
Ameren Corp. 205 8,584
American Electric Power 481 18,819
AT&T Corp. 5,615 164,941
BellSouth 2,815 113,304
CenturyTel, Inc. 210 5,723
CINergy Corp. 238 7,869
CMS Energy 164 4,418
Coastal Corp. 320 23,720
Columbia Energy Group 121 8,591
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
67
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SCHEDULE OF INVESTMENTS BALANCED INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
PUBLIC UTILITIES - 4.83% (CONTINUED)
Consolidated Edison Hldgs. 317 $ 10,818
Constellation Energy Group 224 11,144
CP&L Energy Inc. 239 9,963
Dominion Resources 356 20,670
DTE Energy Co. 213 8,147
Duke Energy 550 47,163
Eastern Enterprises 41 2,616
Edison International 497 9,598
El Paso Energy 346 21,322
Enron Corp. 1,095 95,949
Entergy Corp. 344 12,814
FirstEnergy Corp. 346 9,320
Florida Progress 148 7,835
FPL Group 267 17,555
GPU Inc. 182 5,904
KeySpan Corp. 211 8,466
NEXTEL Communications* 1,135 53,061
Niagara Mohawk Hldgs Inc.* 258 4,064
NICOR Inc. 70 2,533
ONEOK Inc. 44 1,749
PECO Energy Co. 254 15,383
Peoples Energy 53 1,769
PG&E Corp. 577 13,956
Pinnacle West Capital 127 6,461
PPL Corporation 216 9,018
Public Service Enterprise Inc. 324 14,479
Reliant Energy 442 20,553
SBC Communications Inc. 5,090 254,500
Sempra Energy 306 6,369
Southern Co. 971 31,497
Sprint Corp. FON Group 1,312 38,458
Sprint Corp. PCS Group* 1,370 48,036
TXU Corp. 395 15,652
Unicom Corp. 266 14,946
Verizon Communications 4,070 197,141
Williams Cos. 661 27,927
WorldCom Inc.* 4,284 130,125
Xcel Energy Inc. 504 13,860
--------------
1,648,277
--------------
TECHNOLOGY - 15.14%
Adaptec, Inc.* 156 3,120
ADC Telecommunications* 1,010 27,160
Adobe Systems 179 27,790
Advanced Micro Devices* 458 10,820
Agilent Technologies* 676 33,082
Altera Corp.* 596 28,459
American Power Conversion* 290 5,564
Analog Devices* 529 43,676
Andrew Corp.* 121 3,169
Apple Computer* 487 12,540
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
TECHNOLOGY - 15.14% (CONTINUED)
Applied Materials* 1,208 $ 71,650
Autodesk, Inc. 87 2,208
Automatic Data Processing Inc. 939 62,796
BMC Software* 365 6,981
Broadcom Corporation* 322 78,488
Cabletron Systems* 273 8,019
Ceridian Corp.* 217 6,090
Cisco Systems* 10,409 575,097
Citrix Systems* 277 5,557
COMPAQ Computer 2,541 70,081
Computer Associates International 881 22,190
Computer Sciences Corp.* 250 18,563
Compuware Corp.* 539 4,514
Comverse Technology* 228 24,624
Conexant Systems* 325 13,609
Dell Computer* 3,853 118,721
Electronic Data Systems 697 28,926
EMC Corp.* 3,247 321,859
Equifax Inc. 211 5,684
First Data 617 24,102
Gateway, Inc.* 482 22,534
Global Crossing* 1,320 40,920
Hewlett-Packard 1,497 145,209
Intel Corp. 10,023 416,581
International Business Machines 2,653 298,463
JDS Uniphase Corp.* 1,394 131,994
KLA-Tencor Corp.* 278 11,450
Lexmark International Inc.* 193 7,238
Linear Technology Corp. 466 30,174
LSI Logic* 459 13,426
Lucent Technologies 4,873 148,931
Mercury Interactive* 119 18,653
Micron Technology* 830 38,180
Microsoft Corp.* 7,875 474,961
Molex Inc. 294 16,005
Motorola Inc. 3,221 90,993
National Semiconductor* 264 10,626
NCR Corp.* 142 5,369
Network Appliance* 456 58,083
Nortel Networks Corp. Hldg. Co. 4,433 264,041
Novell Inc.* 493 4,899
Novellus Systems* 195 9,080
Oracle Corp.* 4,247 334,451
Palm Inc.* 845 44,716
Parametric Technology* 413 4,517
Paychex Inc. 556 29,190
PE Corp.-PE Biosystems Group 312 36,348
PeopleSoft Inc.* 413 11,538
QUALCOMM Inc.* 1,109 79,016
Sanmina Corp.* 222 20,785
Sapient Corp.* 176 7,161
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
68
<PAGE>
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BALANCED INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
TECHNOLOGY - 15.14% (CONTINUED)
Scientific-Atlanta 238 $ 15,143
Seagate Technology* 340 23,460
Siebel Systems, Inc.* 598 66,565
Sun Microsystems* 2,374 277,165
Tektronix Inc. 72 5,531
Tellabs, Inc.* 613 29,271
Teradyne, Inc.* 259 9,065
Texas Instruments 2,572 121,366
Unisys Corp.* 467 5,254
Veritas Software* 585 83,063
Xilinx, Inc.* 481 41,186
--------------
5,167,740
--------------
TRANSPORTATION - .30%
AMR Corp.* 224 7,322
Burlington Northern Santa Fe Corp. 641 13,822
CSX Corp. 327 7,133
Delta Air Lines 183 8,121
FedEx Corporation* 434 19,244
Norfolk Southern Corp. 573 8,380
Ryder System 89 1,641
Southwest Airlines 743 18,018
Union Pacific 371 14,423
USAirways Group Inc.* 100 3,043
--------------
101,147
--------------
Total Common Stocks
(cost $19,652,265) 18,852,769
--------------
UNIT INVESTMENT TRUST - 3.16%
S&P 500 Depositary Receipts 7,521 1,080,204
--------------
Total Unit Investment Trust
(cost $1,087,480) 1,080,204
--------------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
U.S. TREASURY OBLIGATIONS - 8.07%
U.S. Treasury Note
(6.25% due 01/31/02) $ 123,000 $ 123,077
U.S. Treasury Note
(7.25% due 05/15/04) 1,250,000 1,303,125
U.S. Treasury Note
(6.5% due 05/15/05) 150,000 153,750
U.S. Treasury Note
(7.0% due 07/15/06) 295,000 310,211
U.S. Treasury Bond
(6.25% due 08/15/23) 750,000 763,829
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
U.S. Treasury Bond
(6.125% due 11/15/27) $ 100,000 $ 100,812
--------------
Total U.S. Treasury Obligations
(cost $2,724,239) 2,754,804
--------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 3.58%
FEDERAL HOME LOAN MORTGAGE CORPORATION
(5.75% due 07/15/03) 1,245,000 1,220,969
--------------
Total U.S. Government Agency
Obligations (cost $1,204,942) 1,220,969
--------------
MORTGAGE-BACKED SECURITIES - 15.31%
FEDERAL HOME LOAN MORTGAGE COPORATION
FNCI (6.5% due 07/01/14) 1,523,599 1,495,179
FNCI (7.0% due 07/01/29) 3,804,784 3,730,490
--------------
Total Mortgage-Backed Securities
(cost $5,126,503) 5,225,669
--------------
CORPORATE BONDS - 12.32%
AIR TRANSPORTATION - .97%
Delta Air Lines (7.9% due 12/15/09) 346,000 331,271
--------------
331,271
--------------
BANK, BANK HOLDING COMPANIES & OTHER
BANK SERVICES - 2.51%
Erac USA Finance (7.95% due 12/15/09) 346,000 340,418
Household Finance Corp. (7.2% due
07/15/06) 520,000 516,439
--------------
856,857
--------------
CAPITAL GOODS - 2.0%
Caterpillar Inc. (7.25% due 09/15/09) 693,000 681,242
--------------
681,242
--------------
CONSUMER CYCLICALS - .99%
Ford Motor Credit Corp. (6.7% due
07/16/04) 346,000 338,870
--------------
338,870
--------------
CONSUMER NON-DURABLE - 1.97%
Great Lakes Chemical (7.0% due
07/15/09) 346,000 331,707
Wal-Mart Stores (6.875% due 08/10/09) 346,000 341,658
--------------
673,365
--------------
MANUFACTURING - 1.87%
Champion International Corp.
(7.2% due 11/01/26) 312,000 294,208
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
69
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS BALANCED INDEX FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
MANUFACTURING - 1.87% (CONTINUED)
Rohm & Haas Co. (6.95% due 07/15/04) $ 346,000 $ 345,419
--------------
639,627
--------------
UTILITIES - 2.01%
Sonat Inc. (7.625% due 07/15/11) 693,000 687,541
--------------
687,541
--------------
Total Corporate Bonds
(cost $4,183,451) 4,208,773
--------------
SHORT-TERM INVESTMENTS(3) - 2.10%
VARIABLE RATE DEMAND NOTES(1) - 1.87%
Firstar Bank (6.37% due 12/31/31) 638,711 638,711
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
U.S. TREASURY BILL - .23%
U.S. Treasury Bill (due 12/21/00) $ 78,924 $ 78,924
--------------
Total Short-Term Investments
(cost $717,635) 717,635
--------------
TOTAL INVESTMENTS - 99.77%
(cost $34,696,515)(2) 34,060,823
--------------
OTHER ASSETS AND LIABILITIES - .23% 79,510
--------------
TOTAL NET ASSETS - 100% $ 34,140,333
==============
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
(2) Represents cost for income tax purposes which is substantially the same for
financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of September 30, 2000 was $2,256,373 and
($2,892,065), respectively.
(3) Securities and other current assets with an aggregate value of $726,850
have been segregated with the custodian or designated to cover margin
requirements for the open futures contracts as of September 30, 2000:
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
<S> <C> <C>
-------------------------------------------------------------------
Standard & Poor's 500 Index (12/00) 2 $(34,975)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
70
<PAGE>
SUMMIT MUTUAL FUND, INC. - APEX SERIES
LEHMAN AGGREGATE BOND INDEX FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
U.S. TREASURY OBLIGATIONS - 39.87%
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
U.S. TREASURY NOTES & BONDS - 39.87%
6.250% due 01/31/02 $ 1,750,000 $ 1,751,094
6.500% due 05/15/05 1,200,000 1,230,000
6.125% due 08/15/07 1,350,000 1,364,344
7.625% due 11/15/22 550,000 649,688
6.250% due 08/15/23 1,250,000 1,273,048
6.125% due 11/15/27 225,000 226,828
Total U.S. Treasury Obligations
(cost $6,409,683) 6,495,002
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 6.02%
FEDERAL HOME LOAN MORTAGE CORPORTION -
6.02%
5.750% due 07/15/03 1,000,000 980,698
Total U.S. Government Agency
Obligations (cost $967,825) 980,698
--------------
MORTGAGE-BACKED SECURITIES - 32.56%
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 32.56%
FNCI (6.500% due 07/01/14) 2,611,533 2,562,819
FNCL (7.000% due 07/01/29) 2,794,181 2,740,689
Total Mortgage-Backed Securities
(cost $5,204,064) 5,303,508
--------------
CORPORATE BONDS AND NOTES - 19.26%
AIR TRANSPORTATION - 1.47%
Delta Airlines (7.900% due 12/15/09) 250,000 239,358
--------------
BANK, BANK HOLDING COMPANIES, & OTHER
BANK SERVICES - 4.56%
Erac USA Finance (7.950% due 12/15/09) 250,000 245,967
Household Finance Corp. (7.200% due
07/15/06) 250,000 248,288
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
BANK, BANK HOLDING COMPANIES, & OTHER
BANK SERVICES - 4.56% (CONTINUED)
U.S. West Cap (6.875% due 08/15/01) $ 250,000 $ 249,747
--------------
744,002
--------------
CAPITAL GOODS - 3.02%
Caterpillar Inc. (7.250% due 09/15/09) 500,000 491,517
--------------
CONSUMER CYCLICAL - 3.01%
Ford Motor Credit Corp. (6.700% due
07/16/04) 500,000 489,696
--------------
CONSUMER NON-DURABLE - 2.99%
Great Lakes Chemical Corp. (7.000% due
07/15/09) 250,000 239,672
Wal-Mart Store (6.875% due 08/10/09) 250,000 246,862
--------------
486,534
--------------
MANUFACTURING - 2.69%
Champion International Corp (7.200%
due 11/01/26) 200,000 188,595
Rohm & Haas Co. (6.950% due 07/15/04) 250,000 249,580
--------------
438,175
--------------
UTILITIES - 1.52%
Sonat Inc. (7.625% due 07/15/11) 250,000 248,030
--------------
Total Corporate Bonds and Notes
(cost $3,122,496) 3,137,312
--------------
SHORT-TERM INVESTMENTS - 1.31%
VARIABLE RATE DEMAND NOTES(1) - 1.31%
Firstar Bank (6.370% due 12/31/31) 213,295 213,295
--------------
Total Short-Term Investments
(cost $213,295) 213,295
--------------
TOTAL INVESTMENTS - 99.02%
(cost $15,917,363)(2) 16,129,815
--------------
OTHER ASSETS AND LIABILITIES - .98% 160,293
--------------
TOTAL NET ASSETS - 100.00% $ 16,290,108
==============
</TABLE>
----------
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
(2) Represents cost for income tax purposes which is substantially the same for
financial reporting purposes. Gross unrealized appreciation and
depreciation of securities at September 30, 2000 was $219,645 and ($7,193),
respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
71
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS EVEREST FUND
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
COMMON STOCKS - 96.16%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
COMMUNICATIONS SERVICES - 13.91%
AT&T Corp. 35,687 $ 1,048,305
Bellsouth Corporation 31,000 1,247,750
Belo (AH) Corp 23,000 424,063
Gannett Co. Inc. 12,000 636,000
Knight Ridder Inc 10,000 508,125
SBC Communications Inc 30,200 1,510,000
Verizon Communications 31,054 1,504,178
--------------
6,878,421
--------------
CONSUMER CYCLICAL - 10.93%
Costco Wholesale Corp.* 24,500 855,969
Federated Department Stores* 30,000 783,750
General Motors Corp 7,714 501,410
Sabre Holdings Corp* 31,300 905,744
Target Corporation 45,000 1,153,125
TRICON Global Restaurants Inc.* 39,300 1,203,562
--------------
5,403,560
--------------
CONSUMER NON-DURABLES - 13.03%
Beckman Coulter Inc. 14,000 1,079,750
General Mills Inc. 25,000 887,500
Johnson & Johnson 5,500 516,656
PepsiCo Inc. 21,700 998,200
Pharmacia Corporation 7,680 462,240
Sara Lee Corp. 64,500 1,310,156
Schering-Plough Corporation 25,500 1,185,751
--------------
6,440,253
--------------
ENERGY - 10.23%
Chevron Corporation 15,300 1,304,325
Conoco Inc 50,000 1,306,250
Exxon Mobil Corp. 13,500 1,203,188
Texaco Inc 23,700 1,244,250
--------------
5,058,013
--------------
FINANCIAL - 22.25%
Bank of America Corp. 19,000 995,125
Bank One Corp. 27,200 1,050,600
Charter One Financial Inc. 47,339 1,153,894
First Union Corp 40,000 1,287,500
FleetBoston Financial Corp. 30,000 1,170,000
J.P. Morgan & Company 7,500 1,225,313
Summit Bancorp 43,000 $ 1,483,499
<CAPTION>
SHARES VALUE
<S> <C> <C>
-------------------
FINANCIAL - 22.25% (CONTINUED)
SunTrust Banks Inc. 25,000 1,245,313
Washington Mutual Inc. 35,000 1,393,438
--------------
11,004,682
--------------
INDUSTRIAL - 14.44%
Honeywell International Inc 21,500 765,938
ITT Industries Inc 39,900 1,294,254
Minnesota Mining & Manufacturing
Company 13,300 1,211,963
Newport News Shipbuilding 12,000 520,500
Raytheon Company 45,000 1,279,688
SPX Corp* 7,400 1,050,338
Textron Inc 22,000 1,014,750
--------------
7,137,431
--------------
PUBLIC UTILITIES - 4.55%
Niagara Mohawk Holdings Inc.* 40,000 630,000
Scana Corp. 52,462 1,619,764
--------------
2,249,764
--------------
TECHNOLOGY - 6.82%
Convergys Corp.* 10,000 388,750
Hughes Electronics Corp.* 5,385 200,214
Intel Corp 10,000 415,625
International Business Machines Corp 9,600 1,080,000
NCR Corporation* 34,000 1,285,625
--------------
3,370,214
--------------
Total Common Stocks
(cost $46,360,314) 47,542,338
--------------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
SHORT-TERM INVESTMENTS - 2.30%
VARIABLE RATE DEMAND NOTES(1) - 2.30%
Sara Lee (6.37% due 12/31/31) $ 35,656 $ 35,656
Firstar Bank (6.22% due 12/31/31) 1,100,422 1,100,422
--------------
Total Short-Term Investments
(cost $1,136,078) 1,136,078
--------------
TOTAL INVESTMENTS - 98.46%
(cost $47,496,392)(2) 48,678,416
--------------
OTHER ASSETS AND LIABILITIES - 1.54% 761,365
--------------
TOTAL NET ASSETS - 100% $ 49,439,781
==============
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
(2) Represents cost for income tax purposes which is substantially the same for
financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of September 30, 2000 was $4,060,359 and
($2,878,335), respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
72
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
BOND FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
U.S. TREASURY OBLIGATIONS - 27.06%
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
U.S. TREASURY NOTES & BONDS - 27.06%
7.750% due 02/15/01 $ 2,750,000 $ 2,763,750
5.857% due 08/15/02 1,519,000 1,363,271
6.500% due 05/15/05 750,000 768,750
5.875% due 11/15/05 6,300,000 6,301,972
5.625% due 02/15/06 2,600,000 2,568,314
7.000% due 07/15/06 2,000,000 2,103,126
6.500% due 10/15/06 1,450,000 1,489,875
6.125% due 08/15/29 1,519,000 1,551,279
--------------
Total U.S. Treasury Obligations
(cost $18,640,138) 18,910,337
--------------
MORTGAGE-BACKED SECURITIES - 4.87%
FEDERAL NATIONAL MORTGAGE ASSOCIATION -
4.87%
6.500% due 02/01/29 3,538,792 3,400,546
--------------
Total Mortgage-Backed Securities
(cost $3,344,712) 3,400,546
--------------
COLLATERIZED MORTGAGE OBLIGATIONS -
8.49%
PRIVATE SECTOR - 8.49%
CMC2 Securities Corp. 1993 E 1 E 1CP
(0.000% due 12/25/08) 149,863 121,599
Capstead Mortgage Securities Corp C-4
(10.950% due 02/01/14) 58,453 58,453
Residential Funding Mortgage
Securities (8.000% due 06/25/30) 688,701 656,421
BOAMS 1999-3 B3 (6.250% due 05/25/14) 692,166 623,047
NMFC 1998-4 B3 (6.250% due 10/25/28) 1,021,643 856,300
NSCOR 1998-16 B1 (6.500% due 06/25/13) 904,194 865,043
PNCMS 1999-91P (0.000% due 09/25/29) 3,386,757 2,285,889
RFMSI 2000-S1 B1 (7.500% due 01/25/30) 596,608 465,497
--------------
Total Collateralized Mortgage
Obligations (cost $5,438,257) 5,932,249
--------------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
ASSET-BACKED SECURITIES - 2.59%
COMMERCIAL MORTGAGE-BACKED SECURITIES -
2.59%
Chase Commercial Mortgage Securities
(6.600% due 12/19/07) $ 1,982,000 $ 1,811,026
--------------
Total Asset-Backed Securities
(cost $1,759,698) 1,811,026
--------------
CORPORATE BONDS AND NOTES - 53.63%
AIR TRANSPORTATION - 2.95%
Continental Airlines (7.820% due
10/15/13) 674,287 672,034
Midway Air Lines (8.140% due 01/02/13) 738,101 680,596
NWA Trust No. 2 Class B (10.230% due
06/21/14) 652,431 710,386
--------------
2,063,016
--------------
BANK, BANK HOLDING COMPANIES, & OTHER
FINANCIAL SERVICES - 8.47%
Ahmanson Capital Trust (8.360% due
12/01/26) 1,139,000 951,253
Banc Tec Inc. (7.500% due 06/01/08) 1,139,000 466,990
Erac USA Finance (7.950% due 08/15/09) 760,000 747,739
GS Escrow Corp. (6.750% due 08/01/01) 228,000 224,487
GS Escrow Corp. (7.000% due 08/01/03) 760,000 727,018
Household Finance Corp. (7.200% due
07/15/06) 1,139,000 1,131,200
NationsBank Corp. (7.625% due
04/15/05) 760,000 773,602
Sovereign Bancorp (10.500% due
11/15/06) 190,000 193,325
Svenska Handelsbanken (7.125% due
03/07/07) 750,000 697,876
--------------
5,913,490
--------------
BASIC MATERIALS - 1.88%
IMC Global Nts. (7.625% due 11/01/05) 950,000 929,587
LTV Corp. Sr. Nts. (11.750% due
11/15/09) 760,000 380,000
--------------
1,309,587
--------------
COMMUNICATIONS SERVICES - .53%
Charter Communications Sr. Nt.
(10.250% due 01/15/10) 380,000 371,925
--------------
371,925
--------------
CONSUMER CYCLICAL - 1.50%
Federal-Mongul Co. (7.375% due
01/15/06) 760,000 296,400
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
73
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS BOND FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
CONSUMER CYCLICAL - 1.50% (CONTINUED)
Visteon Corp. (8.250% due 08/01/10) $ 750,000 $ 751,897
--------------
1,048,297
--------------
CONSUMER NON-DURABLE - 2.57%
Dillard Dept. Store (7.375% due
06/01/06) 437,000 342,860
Sequa Corp. Sr. Nts. (9.000% due
08/01/09) 760,000 746,700
World Color Press Inc. Sr. Nts.
(7.750% due 02/15/09) 760,000 708,720
--------------
1,798,280
--------------
ELECTRIC - 5.59%
Calpine Corp. (8.625% due 08/15/10) 1,500,000 1,499,448
Carolina Power & Light Sr. Nts.
(5.950% due 03/01/09) 760,000 688,837
Edison Mission Nts. (7.730% due
06/15/09) 760,000 744,703
Niagra Mohawk Power (8.000% due
06/01/04) 950,000 973,763
--------------
3,906,751
--------------
ENERGY - 3.39%
Louis Dreyfus Nts. (6.875% due
12/01/07) 1,139,000 1,081,632
Mitchell Energy Development Corp.
(6.750% due 02/15/04) 1,329,000 1,287,743
--------------
2,369,375
--------------
ENTERTAINMENT AND LEISURE - 2.44%
Imax Corp. Sr. Nts. (7.875% due
12/01/05) 760,000 691,600
Royal Caribbean (7.000% due 10/15/07) 1,139,000 1,011,081
--------------
1,702,681
--------------
FOOD, BEVERAGE AND TOBACCO - 1.00%
RJR Nabsico Inc. (7.550% due 06/15/15) 760,000 695,043
--------------
695,043
--------------
HEALTH CARE - 1.63%
Universal Health Services Sr. Nts.
(8.750% due 08/15/05) 1,139,000 1,141,173
--------------
1,141,173
--------------
INSURANCE - 4.18%
Fairfax Financial Holdings (7.375% due
03/15/06) 760,000 669,955
Farmers Insurance Exchange (8.500% due
08/01/04) 760,000 784,001
Prudential Insurance Surplus Nts.
(8.100% due 07/15/15) 760,000 756,683
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
INSURANCE - 4.18% (CONTINUED)
USF&G Capital (8.470% due 01/10/27) $ 760,000 $ 710,931
--------------
2,921,570
--------------
MEDIA AND CABLE - 5.04%
CF Cable TV Inc. (9.125% due 07/15/07) 760,000 817,084
CSC Holdings Sr. Nt. (8.125% due
08/15/09) 1,139,000 1,131,399
Continental Cablevision (8.300% due
05/15/06) 760,000 790,477
Diamond Cable Co. (13.250% due
09/30/04) 750,000 783,750
--------------
3,522,710
--------------
MEDIA CONGLOMERATE - 4.32%
News American Holdings (6.625% due
01/09/08) 1,139,000 1,058,062
Time Warner Inc. (8.110% due 08/15/06) 1,139,000 1,178,820
Viacom Inc. Sr. Nts. (7.750% due
06/01/05) 760,000 778,456
--------------
3,015,338
--------------
REAL ESTATE - 3.08%
Colonial Properties Sr. Nts. (8.050%
due 07/15/06) 1,139,000 1,112,363
HealthcareProperties Nts. (6.875% due
06/08/05) 1,139,000 1,041,994
--------------
2,154,357
--------------
TELECOMMUNICATIONS - 5.06%
360 Communications Sr. Nts. (7.500%
due 03/01/06) 1,139,000 1,146,305
Call-Net Enterprises (0.000% due
05/15/09) 760,000 228,000
Deutsche Telecom (8.000% due 06/15/10) 750,000 769,758
Global Crossing Holdings (9.625% due
05/15/08) 760,000 760,000
Talton Holdings Inc. Sr. Nts. (11.000%
due 06/30/07) 760,000 630,800
--------------
3,534,863
--------------
Total Corporate Bonds and Notes
(cost $38,873,442) 37,468,456
--------------
SHORT-TERM INVESTMENTS - 1.79%
VARIABLE RATE DEMAND NOTES(1) - 1.79%
Firstar Bank (6.370% due 12/31/31) 45,312 45,312
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
74
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
BOND FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
VARIABLE RATE DEMAND NOTES(1) - 1.79%
(CONTINUED)
Sara Lee (6.220% due 12/31/31) $ 1,208,464 $ 1,208,464
--------------
Total Short-Term Investments
(cost $1,253,776) 1,253,776
--------------
TOTAL INVESTMENTS - 98.43%
(cost $69,310,023)(2)(2) 68,776,390
--------------
OTHER ASSETS AND LIABILITIES - 1.57% 1,098,467
--------------
TOTAL NET ASSETS - 100.00% $ 69,874,857
==============
</TABLE>
----------
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
(2) Represents cost for income tax purposes which is substantially the same for
financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of September 30, 2000 was $1,303,164 and
($1,836,797), respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
75
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
SCHEDULE OF INVESTMENTS SHORT-TERM GOVERNMENT FUND
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
U.S. TREASURY OBLIGATIONS - 33.11%
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
U.S. TREASURY NOTES & BONDS - 33.11%
5.500% due 08/31/01 $ 1,500,000 $ 1,489,220
5.625% due 09/30/01 1,500,000 1,490,157
0.000% due 11/15/15 1,000,000 397,839
--------------
Total U.S. Treasury Obligations
(cost $3,360,476) 3,377,216
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -
46.49%
FHLMC (6.625% due 08/15/02) 1,800,000 1,804,176
FNMA (4.625% due 10/15/01) 2,000,000 1,963,004
FNMA (5.250% due 01/15/03) 1,000,000 973,751
--------------
Total U.S. Government Agency
Obligations (cost $4,721,024) 4,740,931
--------------
MORTGAGE-BACKED SECURITIES - 17.17%
FEDERAL HOME LOAN MORTGAGE CORPORATION -
.45%
6.000% due 07/15/11 59,649 1,039
8.000% due 04/01/18 43,659 44,397
--------------
45,436
--------------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -
16.11%
6.00% due 10/01/13 $ 1,706,870 $ 1,643,875
--------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
-.61%
9.500% due 09/15/09 58,812 61,850
--------------
Total Mortgage-Backed Securities
(cost $1,715,871) 1,751,161
--------------
SHORT-TERM INVESTMENTS - 2.55%
VARIABLE RATE DEMAND NOTES(1) - 2.55%
Firstar Bank (5.425% due 12/31/31) 260,464 260,464
--------------
Total Short-Term Investments
(cost $260,464) 260,464
--------------
TOTAL INVESTMENTS - 99.32%
(cost $10,057,835)(2) 10,129,772
--------------
OTHER ASSETS AND LIABILITIES - .68% 69,009
--------------
TOTAL NET ASSETS - 100.00% $ 10,198,781
==============
</TABLE>
----------
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
(2) Represents cost for income tax purposes which is substantially the same for
financial reporting purposes. Gross unrealized appreciation and
depreciation of securities as of September 30, 2000 was $71,937 and $0,
respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
76
<PAGE>
SUMMIT MUTUAL FUND, INC. - APEX SERIES
MONEY MARKET FUND SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
FLOATING RATE NOTE - 4.65%
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
BANK, BANK HOLDING COMPANIES, & OTHER
BANK SERVICES - 4.65%
First Union National Bank (6.690% due
07/26/01) $ 3,000,000 $ 3,000,000
--------------
Total Floating Rate Note
(cost $3,000,000) 3,000,000
--------------
SHORT-TERM INVESTMENTS - 94.98%
COMMERCIAL PAPER - 93.36%
Alpine Securitization (6.530% due
10/26/00) 1,500,000 1,493,198
American Express Centurian (6.670% due
07/17/01) 3,000,000 3,000,000
Asset Portfolio Funding (0.000% due
10/23/00) 2,000,000 1,991,994
Bank One Australia (6.530% due
11/15/00) 3,000,000 2,975,513
Baxter International (6.540% due
10/20/00) 3,000,000 2,989,645
British Telecommunication (6.550% due
02/08/01) 3,000,000 2,929,042
Cooper Industries (6.600% due
10/16/00) 3,000,000 2,991,750
Countrywide Home Loan (6.760% due
09/05/01) 3,000,000 3,000,000
Enterprise Funding (6.520% due
10/11/00) 3,000,000 2,994,567
FVAR Owners Trust (6.550% due
10/05/00) 3,000,000 2,997,817
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
COMMERCIAL PAPER - 93.36% (CONTINUED)
Galaxy Funding (6.550% due 01/25/01) $ 3,000,000 $ 2,936,683
Gino Funding (6.530% due 11/09/00) 3,000,000 2,978,778
Greenwich Funding (6.520% due
10/03/00) 3,000,000 2,998,913
Heller Financial Inc. (6.933% due
07/17/01) 3,000,000 2,998,809
Intrepid Funding (6.520% due 10/23/00) 3,000,000 2,988,047
Northern Indiana Public Service
(6.540% due 10/06/00) 3,000,000 2,997,275
Park Avenue Receivables (6.520% due
10/17/00) 3,000,000 2,991,306
Receivables Capital Corp. (6.520% due
10/19/00) 3,000,000 2,990,220
Sigma Finance (6.550% due 10/24/00) 3,000,000 2,987,445
Stellar Funding Group (6.550% due
10/23/00) 3,000,000 2,987,992
Superior Funding (6.530% due 10/26/00) 3,000,000 2,986,396
--------------
60,205,390
--------------
VARIABLE RATE DEMAND NOTES(1) - 1.62%
Firstar Bank (6.370% due 12/31/31) 1,046,134 1,046,134
--------------
Total Short-Term Investments
(cost $61,251,524) 61,251,524
--------------
TOTAL INVESTMENTS - 99.63%
(cost $64,251,524) 64,251,524
--------------
OTHER ASSETS AND LIABILITIES - .37% 237,535
--------------
TOTAL NET ASSETS - 100% $ 64,489,059
==============
</TABLE>
----------
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of September 30, 2000. The maturity shown for each variable rate
demand note is the later of the next scheduled interest adjustment date or
the date on which principal can be recovered through demand. Information
shown is as of September 30, 2000.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
77
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
SEPTEMBER 30, 2000
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Summit Mutual Funds, Inc. ("Summit Mutual Funds") is registered under the
Investment Company Act of 1940, as amended, as a no-load, diversified, open-end
management investment company. Summit Mutual Funds is offered in two series, the
Pinnacle Series and the Apex Series. The results of the Apex Series are
presented here. The shares of Summit Mutual Funds are offered without sales
charge to institutional and retail investors. These funds are also offered to
The Union Central Life Insurance Company ("Union Central") and its exempt
separate accounts. Summit Mutual Funds Apex Series' shares are offered in ten
different funds - S&P 500 Index Fund, S&P MidCap 400 Index Fund, Russell 2000
Small Cap Index Fund, Nasdaq-100 Index Fund, Balanced Index Fund, Lehman
Aggregate Bond Index Fund, Everest Fund, Bond Fund, Short-Term Government Fund,
and Money Market Fund (individually "Fund"). The S&P 500 Index Fund seeks
investment results that correspond to the total return performance of U.S.
common stocks, as represented by the S&P 500 Index. The S&P MidCap 400 Index
Fund seeks investment results that correspond to the total return performance of
U.S. common stocks, as represented by the S&P MidCap 400 Index. The Russell 2000
Small Cap Index Fund seeks investment results that correspond to the investment
performance of U.S. common stocks, as represented by the Russell 2000 Index. The
Nasdaq-100 Index Fund seeks investment results that correspond to the investment
performance of U.S. common stocks, as represented by the Nasdaq-100 Index. The
Balanced Index Fund seeks investment results, with respect to 60% of its assets,
that correspond to the total return performance of U.S. common stocks, as
represented by the S&P 500 Index and with respect to 40% of its assets, that
correspond to the total return performance of investment-grade bonds, as
represented by the Lehman Brothers Aggregate Bond Index. The Lehman Aggregate
Bond Index Fund seeks investment results that correspond to the total return
performance of the bond market, as represented by the Lehman Brothers Aggregate
Bond Index. The Everest Fund seeks long-term appreciation of capital, without
incurring unduly high risk, by investing primarily in common stocks and other
equity securities. The Bond Fund seeks as high a level of current income as is
consistent with reasonable investment risk, by investing primarily in long-term,
fixed-income, investment-grade corporate bonds. The Short-Term Government Fund
seeks to provide a high level of current income and preservation of capital by
investing 100% of its total assets in bonds issued by the U.S. government and
its agencies. The Money Market Fund seeks to maintain stability of capital and,
consistent therewith, to maintain the liquidity of capital and to provide
current income.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
SECURITIES VALUATION - Securities held in each Fund, except for money market
instruments maturing in 60 days or less, are valued as follows: Securities
traded on stock exchanges (including securities traded in both the
over-the-counter market and on an exchange), or listed on the NASDAQ National
Market System, are valued at the last sales price as of the close of the New
York Stock Exchange on the day the securities are being valued, or, lacking any
sales, at the closing bid prices. Securities traded only in the over-the-counter
market are valued at the last bid price, as of the close of trading on the New
York Stock Exchange, quoted by brokers that make markets in the securities.
Other securities for which market quotations are not readily available are
valued at fair value as determined in good faith under procedures adopted by the
Board of Directors. Money market instruments maturing in 60 days or less are
valued at amortized cost, which approximates market.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME - Securities transactions are
recorded on the trade date (the date the order to buy or sell is executed).
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. All amortization of discount is recognized
currently under the effective interest method. Gains and losses on sales of
investments are calculated on the identified cost basis for financial reporting
and tax purposes.
FEDERAL TAXES - Each Fund contemplates declaring as dividends each year all, or
substantially all, of its taxable income, including net capital gains (the
excess of long-term capital gains over short-term capital losses). Shareholders
will be subject to income taxes on these distributions regardless of whether
they are paid in cash or reinvested in additional Fund shares. Distributions
attributable to the net capital gains of a Fund will be taxable to the
shareholder as long-term capital gains, regardless of how long the shareholder
has held the Fund shares. Other Fund distributions will generally be taxable as
ordinary income. The one major exception to these tax principles is that
distributions on, and sales, exchanges and redemptions of, Fund shares held in
an IRA (or other tax-qualified plan) will not be currently taxable.
--------------------------------------------------------------------------------
78
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Shareholders may also be subject to state and local taxes on distributions and
redemptions. State income taxes may not apply, however, to the portions of each
Fund's distributions, if any, that are attributable to interest on Federal
securities or interest on securities of the particular state. Shareholders
should consult their tax advisers regarding the tax status of distributions in
their state and locality.
It is the intent of Summit Mutual Funds to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net investment income and any net realized capital gains.
Therefore, no provision for income or excise taxes has been recorded. The S&P
500 Index Fund and the Nasdaq-100 Index Fund have a capital loss carry forward
of $165,393 and $202,046 which can be carried forward until 2008.
DISTRIBUTIONS - Distributions from net investment income in all Funds, except
Money Market Fund, are declared and paid quarterly. Distributions from net
investment income of the Money Market Fund are declared daily and paid monthly.
Net realized capital gains are distributed annually. Distributions are recorded
on the ex-dividend date. All distributions are reinvested in additional shares
of the respective Fund at the net asset value per share unless you notify Summit
Mutual Funds that you elect to receive distributions in cash.
The amounts of distributions are determined in accordance with federal income
tax regulations, which may differ from accounting principles generally accepted
in the United States of America. These 'book/tax' differences are either
considered temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the capital accounts
based on their federal tax-basis treatment; temporary differences do not require
reclassification. Distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax purposes
are reported as distributions in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they exceed
net investment income and net realized capital gains for tax purposes, they are
reported as distributions of paid-in-capital.
EXPENSES - Allocable expenses of Summit Mutual Funds are charged to each Fund
based on the ratio of the net assets of each Fund to the combined net assets of
Summit Mutual Funds. Nonallocable expenses are charged to each Fund based on
specific identification.
NOTE 2 - TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEES - Summit Mutual Funds pays investment advisory fees to
Summit Investment Partners, Inc. (the Adviser), under terms of an Investment
Advisory Agreement (the Agreement). Certain officers and directors of the
Adviser are affiliated with Summit Mutual Funds. Summit Mutual Funds pays the
Adviser, as full compensation for all services and facilities furnished, a
monthly fee computed separately for each Fund on a daily basis, at an annual
rate, as follows:
(a) for the S&P 500 Index Fund - .30% of the current value of net
assets;
(b) for the S&P MidCap 400 Index Fund - .30% of the current value of net
assets;
(c) for the Russell 2000 Small Cap Index Fund - .35% of the current
value of net assets;
(d) for the Nasdaq-100 Index Fund - .35% of the current value of net
assets;
(e) for the Balanced Index Fund - .30% of current value of net assets;
(f) for the Lehman Aggregate Bond Index Fund - .30% of the current value
of net assets;
(g) for the Everest Fund - .65% of the first $50,000,000, .60% of the
next $100,000,000, and .50% of all over $150,000,000 of the current
value of net assets;
(h) for the Bond Fund - .50% of the first $50,000,000, .45% of the next
$100,000,000, and .40% of all over $150,000,000 of the current value
of net assets;
(i) for the Short-Term Government Fund - .45% of the current value of
net assets;
(j) for the Money Market Fund - .35% of the current value of net assets.
--------------------------------------------------------------------------------
79
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 2 - TRANSACTIONS WITH AFFILIATES (CONTINUED)
The Agreement provides that if the total operating expenses of the Everest and
Bond Fund, exclusive of the advisory fee and certain other expenses as described
in the Agreement, for any fiscal quarter exceed an annual rate of 1% of the
respective average daily net assets, the Adviser will reimburse these funds for
such expense, up to the amount of the advisory fee for that year. The Adviser
will pay any expenses of the Short-Term Government Fund, other than the advisory
fee for that Fund, to the extent that such expenses exceed .28% if the Fund's
net assets. The Adviser will pay any expenses of the S&P 500 Index Fund, the S&P
MidCap 400 Index Fund, the Balanced Index Fund, the Nasdaq-100 Index Fund and
the Lehman Aggregate Bond Index Fund, other than the advisory fee for that Fund,
to the extent that such expenses exceed .30% of that Fund's net assets. The
Adviser will pay any expenses of the Money Market Fund, other than the advisory
fee for that Fund, to the extent that such expenses exceed .10% of the Fund's
net assets. The Adviser will pay any expenses of the Russell 2000 Small Cap
Index Fund, other than the advisory fee for that Fund, to the extent that such
expenses exceed .40% of the Fund's net assets. The Adviser has agreed to reduce
its fee for a period of one year from the commencement of operations by .02,
.04, and .02 percentage points for the S&P 500 Index Fund, the Everest Fund, and
the Bond Fund, respectively. The Adviser may not revise or cancel these waivers
during the one year period. As a result, for the period ended September 30,
2000, the adviser reimbursed the S&P MidCap 400 Index Fund $18,760, the Russell
2000 Small Cap Index Fund $72,037, the Nasdaq-100 Index Fund $32,792, the
Balanced Index Fund $2,106, the Lehman Aggregate Bond Index Fund $16,941, the
Short-Term Government Fund $25,013, and the Money Market Fund $14,562.
Summit Investment Partners, Inc. is a wholly-owned subsidiary of Union Central.
DIRECTORS' FEES - Each director who is not affiliated with the Adviser receives
fees from Summit Mutual Funds for service as a director. Members of the Board of
Directors who are not affiliated with the Adviser are eligible to participate in
a deferred compensation plan. The value of each director's deferred compensation
account will increase or decrease at the same rate as if it were invested in
shares of the Summit Money Market Fund.
FORMATION OF THE APEX SERIES - On April 3, 2000, Union Central purchased shares
in the Bond, Everest, S&P 500 Index, S&P MidCap 400 Index, Balanced Index, and
the Lehman Aggregate Bond Index Funds by redeeming shares in the Pinnacle
Series' Portfolios with the same investment objectives. These shares are owned
by certain exempt separate accounts of Union Central.
NOTE 3 - FUTURES CONTRACTS
All Funds may enter into futures contracts for hedging purposes, including
protecting the price or interest rate of securities that the Fund intends to
buy, that relate to securities in which it may directly invest and indices
comprised of such securities may purchase and write call and put options on such
contracts. Each eligible Fund may invest up to 20% of its assets in such futures
and/or options. The S&P MidCap 400 Index, Russell 2000 Small Cap Index,
Nasdaq-100 Index, and Balanced Index Fund may invest up to 100% of their assets
in such futures and/or options until each Fund reaches $50 million in net
assets. These contracts provide for the sale of a specified quantity of a
financial instrument at a fixed price at a future date. When the Funds enter
into a futures contract, they are required to deposit and maintain as collateral
such initial margin as required by the exchange on which the contract is traded.
Under terms on the contract, the Funds agree to receive from or pay to the
broker an amount equal to the daily fluctuation in the value of the contract
(known as the variation margin). The variation margin is recorded as unrealized
gain or loss until the contract expires or is otherwise closed, at which time
the gain or loss is realized. The Funds invest in futures as a substitute to
investing in the common stock positions in the Index that they intend to match.
The potential risk to the Funds is that the change in the value in the
underlying securities may not correlate to the value of the contracts.
--------------------------------------------------------------------------------
80
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 4 - SUMMARY OF PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of securities for the period ended September 30, 2000
excluding short-term obligations, follow:
<TABLE>
<CAPTION>
S&P RUSSELL 2000
S&P 500 MIDCAP 400 SMALL CAP NASDAQ-100
INDEX FUND INDEX FUND INDEX FUND INDEX FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Total Cost of Purchases of:
Common Stocks $180,042,981 $ 27,625,125 $ 22,098,972 $ 19,716,468
U.S Government
Securities -- -- -- --
Corporate Bonds -- -- -- --
------------ ------------ ------------ ------------
$180,042,981 $ 27,625,125 $ 22,098,972 $ 19,716,468
============ ============ ============ ============
Total Proceeds from Sales of:
Common Stocks $ 13,905,921 $ 8,510,984 $ 7,312,427 $ 8,517,643
U.S Government
Securities -- -- -- --
Corporate Bonds -- -- -- --
------------ ------------ ------------ ------------
$ 13,905,921 $ 8,510,984 $ 7,312,427 $ 8,517,643
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
LEHMAN
BALANCED AGGREGATE BOND EVEREST
INDEX FUND INDEX FUND FUND
------------- -------------- -------------
<S> <C> <C> <C>
Total Cost of Purchases of:
Common Stocks $ 24,104,121 $ -- $ 82,117,395
U.S. Government Securities 10,818,967 13,720,682 --
Corporate Bonds 4,179,094 3,368,005 --
------------ ------------ ------------
$ 39,102,182 $ 17,088,687 $ 82,117,395
============ ============ ============
Total Proceeds from Sales of:
Common Stocks $ 3,309,658 $ -- $ 36,061,738
U.S. Government Securities 1,777,638 1,153,592 --
Corporate Bonds -- 253,795 --
------------ ------------ ------------
$ 5,087,296 $ 1,407,387 $ 36,061,738
============ ============ ============
</TABLE>
--------------------------------------------------------------------------------
81
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 4 - SUMMARY OF PURCHASES AND SALES OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
SHORT-TERM
BOND GOVERNMENT
FUND FUND
------------- -------------
<S> <C> <C>
Total Cost of Purchases of:
Common Stocks $ -- $ --
U.S. Government Securities 33,143,011 13,654,728
Corporate Bonds 57,256,955 --
------------ ------------
$ 90,399,966 $ 13,654,728
============ ============
Total Proceeds from Sales of:
Common Stocks $ -- $ --
U.S. Government Securities 12,512,810 3,953,950
Corporate Bonds 12,943,703 --
------------ ------------
$ 25,456,513 $ 3,953,950
============ ============
</TABLE>
--------------------------------------------------------------------------------
82
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
S&P 500 INDEX FUND
PERIOD FROM APRIL 3, 2000(1)
TO SEPTEMBER 30, 2000
-----------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 10.00
--------
Investment Activities:
Net investment income .04
Net realized and unrealized gains/(losses) (.41)
--------
Total from Investment Activities (.37)
--------
Distributions:
Net investment income (.03)
Net realized gains --
--------
Total Distributions (.03)
--------
Net Asset Value,
End of period $ 9.60
========
Total Return (3.71%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) 0.40%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 0.82%(3)
Portfolio Turnover Rate 17.82%(3)
Net Assets, End of Period (000's) $160,899
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.02%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT WAIVED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
83
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS (CONTINUED)
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
S&P MIDCAP 400 INDEX FUND
PERIOD FROM APRIL 3, 2000(1)
TO SEPTEMBER 30, 2000
-----------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 10.00
--------
Investment Activities:
Net investment income .05
Net realized and unrealized gains/(losses) .69
--------
Total from Investment Activities .74
--------
Distributions:
Net investment income (.03)
Net realized gains
---
--------
Total Distributions (.03)
--------
Net Asset Value,
End of period $ 10.71
========
Total Return 7.41%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) 0.59%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 1.09%(3)
Portfolio Turnover Rate 96.90%(3)
Net Assets, End of Period (000's) $24,015
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.19%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT WAIVED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
84
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS (CONTINUED)
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
RUSSELL 2000 SMALL CAP INDEX FUND
PERIOD FROM DECEMBER 29, 1999(1)
TO SEPTEMBER 30, 2000
---------------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 10.00
--------
Investment Activities:
Net investment income .05
Net realized and unrealized gains/(losses) .72
--------
Total from Investment Activities .77
--------
Distributions:
Net investment income (.04)
Net realized gains --
--------
Total Distributions (.04)
--------
Net Asset Value,
End of period $ 10.73
========
Total Return 7.70%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) .75%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 1.05%(3)
Portfolio Turnover Rate 67.92%(3)
Net Assets, End of Period (000's) $15,889
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.94%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT WAIVED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
85
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS (CONTINUED)
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
NASDAQ-100 INDEX FUND
PERIOD FROM DECEMBER 28, 1999(1)
TO SEPTEMBER 30, 2000
---------------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 10.00
--------
Investment Activities:
Net investment income .05
Net realized and unrealized gains/(losses) (.11)
--------
Total from Investment Activities (.06)
--------
Distributions:
Net investment income (.03)
Net realized gains --
--------
Total Distributions (.03)
--------
Net Asset Value,
End of period $ 9.91
========
Total Return (0.62%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) .61%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 1.09%(3)
Portfolio Turnover Rate 113.32%(3)
Net Assets, End of Period (000's) $13,093
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.53%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT REIMBURSED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
86
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS (CONTINUED)
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
BALANCED INDEX FUND
PERIOD FROM APRIL 3, 2000(1)
TO SEPTEMBER 30, 2000
-----------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 10.00
--------
Investment Activities:
Net investment income .16
Net realized and unrealized gains/(losses) (.17)
--------
Total from Investment Activities (.01)
--------
Distributions:
Net investment income (.12)
Net realized gains --
--------
Total Distributions (.12)
--------
Net Asset Value,
End of period $ 9.87
========
Total Return (0.12%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) 0.59%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 3.13%(3)
Portfolio Turnover Rate 30.16%(3)
Net Assets, End of Period (000's) $34,140
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.01%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT WAIVED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
87
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS (CONTINUED)
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
LEHMAN AGGEGRATE BOND INDEX FUND
PERIOD FROM APRIL 3, 2000(1)
TO SEPTEMBER 30, 2000
--------------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 10.00
--------
Investment Activities:
Net investment income .31
Net realized and unrealized gains/(losses) .14
--------
Total from Investment Activities .45
--------
Distributions:
Net investment income (.23)
Net realized gains --
--------
Total Distributions (.23)
--------
Net Asset Value,
End of period $ 10.22
========
Total Return 4.55%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) 0.59%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 6.29%(3)
Portfolio Turnover Rate 18.43%(3)
Net Assets, End of Period (000's) $16,290
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.22%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT WAIVED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
88
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS (CONTINUED)
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
EVEREST FUND
PERIOD FROM DECEMBER 29, 1999(1)
TO SEPTEMBER 30, 2000
---------------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 10.00
--------
Investment Activities:
Net investment income .08
Net realized and unrealized gains/(losses) .24
--------
Total from Investment Activities .32
--------
Distributions:
Net investment income (.06)
Net realized gains --
--------
Total Distributions (.06)
--------
Net Asset Value,
End of period $ 10.26
========
Total Return 3.21%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) 0.81%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 1.51%(3)
Portfolio Turnover Rate 138.39%(3)
Net Assets, End of Period (000's) $49,440
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.04%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT WAIVED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
89
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS (CONTINUED)
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
BOND FUND
PERIOD FROM APRIL 3, 2000(1)
TO SEPTEMBER 30, 2000
-----------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 10.00
--------
Investment Activities:
Net investment income .36
Net realized and unrealized gains/(losses) (.06)
--------
Total from Investment Activities .30
--------
Distributions:
Net investment income (.26)
Net realized gains --
--------
Total Distributions (.26)
--------
Net Asset Value,
End of period $ 10.04
========
Total Return 3.04%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) 0.64%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 7.19%(3)
Portfolio Turnover Rate 80.03%(3)
Net Assets, End of Period (000's) $69,875
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.02%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT WAIVED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
90
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS (CONTINUED)
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
SHORT-TERM GOVERNMENT FUND
PERIOD FROM APRIL 3, 2000(1)
TO SEPTEMBER 30, 2000
-----------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 10.00
--------
Investment Activities:
Net investment income .30
Net realized and unrealized gains/(losses) .11
--------
Total from Investment Activities .41
--------
Distributions:
Net investment income (.22)
Net realized gains --
--------
Total Distributions (.22)
--------
Net Asset Value,
End of period $ 10.19
========
Total Return 4.14%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) 0.73%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 5.89%(3)
Portfolio Turnover Rate 99.38%(3)
Net Assets, End of Period (000's) $10,199
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.52%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT REIMBURSED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
91
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 5 - FINANCIAL HIGHLIGHTS (CONTINUED)
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
MONEY MARKET FUND
PERIOD FROM JUNE 28, 2000(1)
TO SEPTEMBER 30, 2000
-----------------------------
<S> <C>
Net Asset Value,
Beginning of period $ 1.00
--------
Investment Activities:
Net investment income .02
Net realized and unrealized gains/(losses) --
--------
Total from Investment Activities .02
--------
Distributions:
Net investment income (.02)
Net realized gains --
--------
Total Distributions (.02)
--------
Net Asset Value,
End of period $ 1.00
========
Total Return 1.64%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(2) 0.45%(3)
Ratio of Net Investment Income to Average Net
Assets(2) 6.41%(3)
Net Assets, End of Period (000's) $64,489
</TABLE>
---------
(1) COMMENCEMENT OF OPERATIONS.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY 0.09%
FOR THE PERIOD ENDED SEPTEMBER 30, 2000, HAD THE ADVISER NOT WAIVED
EXPENSES.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
92
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - APEX SERIES
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF SUMMIT MUTUAL FUNDS, INC. - APEX
SERIES:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments of Summit Mutual Funds, Inc. - Apex Series (the
"Funds"), including S&P 500 Index Fund, S&P MidCap 400 Index Fund, Russell 2000
Small Cap Index Fund, Nasdaq-100 Index Fund, Balanced Index Fund, Lehman
Aggregate Bond Index Fund, Everest Fund, Bond Fund, Short-Term Government Fund,
and Money Market Fund, as of September 30, 2000, and the related statements of
operations, changes in net assets, and the financial highlights for the periods
from the respective dates of inception to September 30, 2000. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 2000, by correspondence with the Funds'
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of September 30, 2000, the results of their operations, the changes in
their net assets and the financial highlights for the periods from the
respective dates of inception to September 30, 2000, in conformity with
accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
November 10, 2000
--------------------------------------------------------------------------------
93
<PAGE>
The Summit Pinnacle Series is distributed to
insurance company's separate accounts
available in variable annuity and variable
universal life insurance products. The
Pinnacle Series consists of the following
Portfolios:
EQUITY INDEX ACCOUNTS
S&P 500 Index Portfolio
S&P MidCap 400 Index Portfolio
Russell 2000 Small Cap Index Portfolio
Nasdaq-100 Index Portfolio
BALANCED INDEX ACCOUNT
Balanced Index Portfolio
MANAGED ACCOUNTS
Zenith Portfolio
Bond Portfolio
The Summit Apex Series is a 100% No-Load
Family of Mutual Funds intended for
institutional and retail accounts. The Apex
Series consists of the following Funds:
EQUITY INDEX ACCOUNTS
S&P 500 Index Fund
S&P MidCap 400 Index Fund
Russell 2000 Small Cap Index Fund
Nasdaq-100 Index Fund
FIXED INCOME & BALANCED INDEX ACCOUNTS
Balanced Index Fund
Lehman Aggregate Bond Index Fund
MANAGED ACCOUNTS
Everest Fund
Bond Fund
Short-Term Government Fund
STABLE VALUE ACCOUNT
Money Market Fund
For more complete information about the
Summit Mutual Funds, including charges and
expenses, call 888-259-7565 for a
prospectus. Please read it carefully before
you invest or send money. Summit Mutual
Funds are distributed by Carillon
Investments, Inc., Cincinnati, Ohio, Member
SIPC. Please visit our Website at
www.summitfunds.com to learn more about the
Summit Mutual Funds.
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