<PAGE>
SUMMIT SEMIANNUAL
MUTUAL REPORT
FUNDS
SUMMIT PINNACLE SERIES
-------------------------------------------------------
S&P 500 Index Portfolio
S&P MidCap 400 Index Portfolio
Russell 2000 Small Cap Index Portfolio
Nasdaq-100 Index Portfolio
Balanced Index Portfolio
Zenith Portfolio
Bond Portfolio
JUNE 30, 2000 [GRAPHIC] SUMMIT
------
MUTUAL
FUNDS
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SEMI-ANNUAL REPORT - TABLE OF CONTENTS
<TABLE>
<S> <C>
President's Message......................................... 1
Investment Review
Zenith Portfolio........................................ 2
Bond Portfolio.......................................... 4
S&P 500 Index Portfolio................................. 6
S&P MidCap 400 Index Portfolio.......................... 8
Balanced Index Portfolio................................ 10
Nasdaq-100 Index Portfolio.............................. 12
Russell 2000 Small Cap Index Portfolio.................. 14
Statements of Assets and Liabilities........................ 16
Statements of Operations.................................... 18
Statements of Changes in Net Assets......................... 20
Schedule of Investments
Zenith Portfolio........................................ 23
Bond Portfolio.......................................... 24
S&P 500 Index Portfolio................................. 27
S&P MidCap 400 Index Portfolio.......................... 33
Balanced Index Portfolio................................ 38
Nasdaq-100 Index Portfolio.............................. 45
Russell 2000 Small Cap Index Portfolio.................. 47
Notes to Financial Statements............................... 68
</TABLE>
THIS REPORT HAS BEEN PREPARED FOR THE INFORMATION OF CONTRACT OWNERS AND IS NOT
AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE PURCHASERS OF CONTRACTS UNLESS IT IS
PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS FOR SUMMIT MUTUAL
FUNDS, INC.
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SEMI-ANNUAL REPORT - MESSAGE FROM THE PRESIDENT
We are pleased to send you the Summit Mutual Funds, Inc. - Pinnacle Series -
(the "Fund") Semi-Annual Report for the period ended June 30, 2000. A number of
significant developments occurred in the past six months that we believe will
have positive benefits to shareholders. On February 25, 2000 the Board of
Directors for the Fund unanimously approved a name change from Carillon
Fund, Inc. to Summit Mutual Funds, Inc. This name change provides a new positive
identity for our fund family - one that espouses a true linkage between our
investment advisor and the shareholders that we serve.
During the past several years, the benefits of investing have been readily
apparent, while the risks have been somewhat less obvious. Over the past six
months, however, investors have witnessed sharp drops and significant
recoveries, sometimes within the same day or week. After enjoying favorable
market conditions for years, investors have had to adjust to significant
political and economic developments, both domestic and foreign, that have
contributed to quick sentiment swings and market volatility. These developments
have been accentuated by the lingering expectation that stock prices are overdue
for correction according to several traditional, widely followed indicators.
However, in spite of recent market turbulence, the markets continue to flourish,
boosted by solid economic growth low, interest rates, low inflation, and an
influx of money from investors.
All of these trends serve to remind us that although the market's extreme 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.
The last six months have been eventful not only because of financial market
activity, but also because of the following significant developments:
- Our "CORE & EXPLORE" strategy was unveiled as a tool to better educate our
shareholders on the prudent investing in both diversified index and actively
managed funds for both their personal and retirement funds.
- The Fund introduced a number of new mutual funds in 2000 to complement our
existing investment choices - particularly in the index or "passively managed"
arena. These new funds are:
SUMMIT RUSSELL 2000 SMALL CAP INDEX PORTFOLIO - The Russell 2000 Index is based
on approximately 2000 small cap stocks.
SUMMIT NASDAQ-100 INDEX PORTFOLIO - The Nasdaq-100 Index consists of the 100
largest and most active non-financial domestic and foreign issues listed on the
Nasdaq.
On the following pages you will find commentary from Summit's portfolio managers
and specific details as to each Fund's investment portfolio and its performance.
Summit Investment Partners maintains a firm commitment to making smart
investments and taking prudent risk. In closing, I would like to thank you for
your continued confidence in Summit.
Best regards,
/s/ Steven R. Sutermeister
Steven R. Sutermeister
President & Chief Executive Officer
Summit Mutual Funds, Inc.
August 15, 2000
--------------------------------------------------------------------------------
1
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
ZENITH PORTFOLIO
MANAGER'S COMMENTS:
The Zenith Portfolio performance for the first half of 2000 was +5.85% before
contract fees and expenses versus -0.42% for the S&P 500 and -4.2% for the
Russell 1000 value index.
The first half of 2000 for the stock market was marked by sector rotation which
pushed favored sectors to overpriced levels and pulled out-of-favor sectors down
to levels that were below private values for many companies. The technology
run-up to all-time highs was followed by dives of breathtaking speed. Many
technology stocks seemed to move on the next marginal piece of market
commentary. If the news is good the stock soars; if the news is negative the
stock plummets. 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 last fall.
The Zenith Portfolio tries to be opportunistic when establishing positions and
attempts to purchase equities when their P/E ratio is below that of the S&P 500.
During the first half of 2000, the pharmaceuticals were selling below a market
multiple (which they very infrequently are) and were acquired. This exposure
should benefit when biotech stocks swoon or when the economy slows down. Either
way, the stocks were acquired at value level prices.
Additionally, the Zenith Portfolio is attempting to benefit from the spending
for new technologies without paying above market multiples to participate. This
strategy stresses acquiring industrial companies who are supplying the necessary
components but are selling below market multiples. 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.
As mentioned at the outset, the sector rotation and
technology-headline-domination have impacted the financial markets in the first
half. The Zenith Portfolio will attempt to acquire different sectors when they
become attractively priced due to the volatility in the markets and will be more
underweighted in technology stocks until their valuation levels provide
appropriate buying opportunities.
TOP TEN HOLDINGS
-------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. International Business Machines 6. Chevron Corporation
2. Lilly (Eli) & Co. 7. SBC Communications, Inc.
3. Sara Lee Corporation 8. Target Corporation
4. SPX Corporation 9. Schering Plough Corporation
5. Microsoft Corporation 10. Texaco
</TABLE>
--------------------------------------------------------------------------------
2
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
ZENITH PORTFOLIO
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 Zenith Portfolio 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: August 15, 1984
MANAGERS: James McGlynn
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On June 30, 2000, the Zenith Portfolio had net assets of $47,178,212 and
diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 95.7%
Short-Term and Other 4.3%
</TABLE>
As an investor in the Summit Zenith Portfolio, for every $1 you had invested on
June 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Consumer Non-Durable 17.3%
Financial 16.3%
Consumer Cyclical 16.1%
Technology 13.2%
Industrial 12.9%
Energy 10.0%
Utilities 9.9%
Short-Term & Other 4.3%
</TABLE>
--------------------------------------------------------------------------------
3
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
BOND PORTFOLIO
MANAGER'S COMMENTS:
The U.S. economy continued its expansion into the 10th year. During the first
half of 2000, the GDP grew at an annualized rate of 5%. Despite the high overall
growth rate, inflation remained restrained and productivity maintained a healthy
level. The continued strength in the economy has been somewhat surprising given
the restrictive Federal Reserve monetary policy of the past year. However, there
are some signs that the restrictive policy is starting to affect the economy.
Consumer spending slowed in the second quarter and stock market is off its highs
reached earlier in the year.
For the six months ended June 30, 2000, the Summit Bond Portfolio had a total
return of 2.40%, before contact fees and expenses, versus the Lehman Brothers
Aggregate Bond Index return of 3.99%. The underperformance for the period is
attributed to the portion of the portfolio invested in high yield bonds. The
high yield sector in aggregate has performed negatively so far in 2000 and is
not included in the Lehman Index. Over the long term, the high yield sector has
provided positive incremental returns for the portfolio, and we believe it will
provide positive relative value in the future. However, over short periods any
sector may underperform the market as a whole.
Looking ahead to the balance of 2000, the basic strategy for the Summit Bond
Portfolio will not change. We will continue to attempt to outperform the Lehman
Index through individual security selection, sector rotation and relative value
analysis.
--------------------------------------------------------------------------------
4
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
BOND PORTFOLIO
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 Portfolio 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: August 15, 1984
MANAGERS: Gary R. Rodmaker and Michael J. Schultz
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On June 30, 2000, the Bond Portfolio had net assets of $21,860,402 and
diversified holdings of:
<TABLE>
<S> <C>
Bonds 99.6%
Short-Term and Other 0.4%
</TABLE>
As an investor in the Summit Bond Portfolio, for every $1 you had invested on
June 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate Bonds 51.9%
U.S. Treasuries 33.4%
Mortgage & Asset-Backed Securities 14.3%
Short-Term & Other 0.4%
</TABLE>
--------------------------------------------------------------------------------
5
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P 500 INDEX PORTFOLIO
MANAGER'S COMMENTS:
The Summit S&P 500 Index Portfolio declined .56% before contract fees and
expenses for the six-month period ending June 30, 2000. The underlying index,
the S&P 500, declined .42% during the same period. These modest returns reflect
investors' cautiousness during the recent string of Federal Reserve interest
rate increases, which are intended to temper the strong growth of the U.S.
economy.
On a relative basis, the sectors that contributed positively to the index for
the first six months of the year included the traditionally defensive Health
Care and Utility sectors. Health care stocks were up 24.1% during the period,
while utilities gained 15.7%. Technology stocks, which have led the market over
the last several years, increased just 3.4%. On the downside, poor performances
by Basic Materials (down 24.4%), Communications Services (down 14.7%), and
Consumer Cyclicals (down 18.5%) negatively impacted the index's returns.
TOP TEN HOLDINGS
--------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. General Electric Company 6. Exxon Mobil Corporation
2. Intel Corporation 7. Wal-Mart Stores, Inc.
3. Cisco System, Inc. 8. Oracle Systems
4. Microsoft Corporation 9. Citigroup, Inc.
5. Pfizer, Inc. 10. International Business Machines
</TABLE>
--------------------------------------------------------------------------------
6
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P 500 INDEX PORTFOLIO
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 Portfolio 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: December 29, 1995
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On June 30, 2000, the S&P 500 Index Portfolio had net assets of $127,548,859 and
diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 98.8%
Short-Term, Futures, and Other 1.2%
</TABLE>
As an investor in the Summit S&P 500 Index Portfolio, for every $1 you had
invested on June 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 33.7%
Consumer Non-Durable 21.6%
Financial 12.6%
Capital Goods 7.8%
Consumer Cyclical 7.7%
Energy 5.3%
Communications Services 5.1%
Utilities 2.4%
Basic Materials 2.0%
Short-Term, Futures, & Other 1.2%
Transportation 0.6%
</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
Fund, 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.
--------------------------------------------------------------------------------
7
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P MIDCAP 400 INDEX PORTFOLIO
MANAGER'S COMMENTS:
The Summit S&P MidCap 400 Index Portfolio returned 8% for the six-month period
ending June 30, 2000 before contract fees and expenses. The S&P MidCap 400 Index
returned 8.9% during the same period, representing the best return of all of the
major indices. The medium-sized companies in the index were beneficiaries of the
shift out of large-cap stocks, reflecting investors' growing unease with the
relatively high price to earning ratios of these stocks in an environment of
rising interest rates.
On a relative basis, the best performing sector for the first half of the year
was Energy (+37%), which benefited from surging fuel and oil prices. Stocks in
the Health Care (+24%) and Utilities (+11%) sectors also registered strong
performances. Technology stocks, which have led the market over the last several
years, gained just 4%. Negatively impacting the index's returns for the period
were Communication Services (-28%), Financials (-21%), and Basic Materials
(-18%).
TOP TEN HOLDINGS
-------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. S&P Mid-Cap 400 Depositary Receipts 6. Jabil Circuit, Inc.
2. Vitesse Semiconductor 7. Chiron Corporation
3. Univision Communications, Inc. 8. Forest Laboratories Class A
4. Millennium Pharmaceuticals 9. Stryker Corporation
5. Dynegy, Inc. 10. Rational Software Corporation
</TABLE>
--------------------------------------------------------------------------------
8
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P MIDCAP 400 INDEX PORTFOLIO
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 Portfolio 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: May 3, 1999
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On June 30, 2000, the S&P 400 MidCap Index Portfolio had net assets of
$11,177,173 and diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 75.6%
Short-Term, Futures, and Other 24.4%
</TABLE>
As an investor in the Summit S&P MidCap 400 Index Portfolio, for every $1 you
had invested on June 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Short-Term, Futures, & Other 24.4%
Technology 16.6%
Consumer Cyclical 9.5%
Health Care 9.5%
Utilities 8.1%
Financial 7.8%
Consumer Non-Durable 6.5%
Capital Goods 6.0%
Energy 5.7%
Basic Materials 3.5%
Communications Services 1.4%
Transportation 1.0%
</TABLE>
--------------------------------------------------------------------------------
9
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
BALANCED INDEX PORTFOLIO
MANAGER'S COMMENTS:
The Summit Balanced Index Portfolio returned 1.39% for the six-month period
ending June 30, 2000 before contract fees and expenses. The Portfolio seeks
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 Aggregate Bond Index. Its underlying indices, the S&P 500 and Lehman
Aggregate, returned -.42% and 3.99%, respectively, during the same period.
Although the performance of both indices was impacted by the Fed's recent series
of interest rate increases, the effect was much more pronounced on stocks than
bonds. Technology stocks, which have led the market over the last several years,
returned a modest 3.4% for the first half of the year. Because these stocks
comprise one-third of the Index, however, they significantly influenced its
overall return. On a relative basis, the sectors that contributed positively to
the Index for the first six months of the year included the traditionally
defensive Health Care and Utility sectors. Health care stocks were up 24.1%
during the period, while Utilities gained 15.7%. On the downside, poor
performances by Basic Materials (down 24.4%), Communications Services (down
14.7%), and Consumer Cyclicals (down 18.5%) negatively impacted the index's
returns.
TOP TEN EQUITY HOLDINGS
-------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. S&P 500 Depositary Receipts 6. Pfizer, Inc.
2. General Electric Company 7. Exxon Mobil Corporation
3. Intel Corporation 8. Wal-Mart Stores, Inc.
4. Cisco Systems, Inc. 9. Oracle Systems
5. Microsoft Corporation 10. Citigroup, Inc.
</TABLE>
--------------------------------------------------------------------------------
10
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
BALANCED INDEX PORTFOLIO
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 Portfolio 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: May 3, 1999
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On June 30, 2000, the Balanced Index Portfolio had net assets of $15,587,593 and
diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 57.7%
Bonds and Notes 38.4%
Short-Term and Other 3.9%
</TABLE>
As an investor in the Summit Balanced Index Portfolio, for every $1 you had
invested on June 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Stocks 57.7%
Mortgage-Backed Securities 15.0%
Corporate Bonds 11.8%
Treasuries & Agency Notes 11.6%
Short-Term & Other 3.9%
</TABLE>
--------------------------------------------------------------------------------
11
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
NASDAQ-100 INDEX PORTFOLIO
MANAGER'S COMMENTS:
The Nasdaq-100 Index returned 1.5% for the six-month period ending June 30,
2000. The Index is a popular proxy for the large-cap growth sector, which fell
out of favor during the period as a result of the Fed's ongoing attempts to slow
the economy by raising interest rates. Stocks with high price earnings ratios
are often viewed as less attractive in an increasing rate environment, as the
present value of future earnings are reduced.
Because the Nasdaq-100 Index is capitalization-weighted, the largest companies
that comprise the Index significantly influence its return for any given period.
Positively contributing to the Index's return for the period were Intel (up
62%), JDS Uniphase (up 48%), and Oracle (up 50%). A number of formerly
high-flying stocks detracted from performance during the period, such as
Qualcomm (down 65%), Microsoft (down 31%), CMGI (down 66%), and YAHOO (down
42%).
The Summit Nasdaq-100 Index Portfolio commenced operation on April 26, 2000. The
Portfolio's return since inception, as of June 30, 2000, was 7.3% before
contract fees and expenses. The underlying index, the Nasdaq-100, gained 7.4%
during the same period.
TOP TEN HOLDINGS
--------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. Cisco System, Inc. 6. Nasdaq-100 Shares
2. Intel Corporation 7. Sun Microsystems
Nextel Communications, Inc.
3. Microsoft Corporation 8. Class A
4. Oracle Systems 9. QUALCOMM, Inc.
5. JDS Uniphase Corporation 10. WorldCom, Inc.
</TABLE>
--------------------------------------------------------------------------------
12
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
NASDAQ-100 INDEX PORTFOLIO
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 Portfolio 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: April 26, 2000
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On June 30, 2000, the Nasdaq-100 Index Portfolio had net assets of $10,868,710
and diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 98.4%
Short-Term & Other 1.6%
</TABLE>
As an investor in the Summit Nasdaq-100 Index Portfolio, for every $1 you had
invested on June 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 76.6%
Utilities 6.9%
Consumer Cyclical 6.7%
Health Care 5.9%
Short-Term & Other 1.6%
Capital Goods 1.5%
Consumer Non-Durable 0.4%
Basic Materials 0.3%
Transportation 0.1%
</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 Fund, 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.
--------------------------------------------------------------------------------
13
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
MANAGER'S COMMENTS:
The Russell 2000 Index gained 3.1% during the six-month period ending June 30,
2000. As with all of the major indices, this modest returns reflect the cautious
stance that investors have adopted as the Fed has embarked on a series of
interest rate increases.
On a relative basis, the top performing sector for the first half of the year
was Energy (up 54%), which benefited from a surge in fuel and oil prices. Health
Care stocks in the index registered strong gains as well, increasing 38% for the
period. Despite the modest relative performance of Technology stocks (up only
3.6%) in the index, they accounted for 40% of the index return, due to the large
weighting accorded the sector. Negatively impacting the index's return were
stocks in the Basic Materials, Communication Services, and Consumer Ccyclical
sectors, each down 15% for the period.
The Summit Russell 2000 Small Cap Index Portfolio commenced operations on
April 26, 2000. The Portfolio's return since inception, through June 30, 2000,
was 6.5% before contract fees and expenses. The Russell 2000 Index gained 7.06%
during the same period.
TOP TEN HOLDINGS
--------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
1. MRVCommunications, Inc. 6. Netro Corporation
2. Digital Island, Inc. 7. Varian Semiconductor Equipment
3. Coherent, Inc. Associates, Inc.
4. Plexus Corporation 8. MGC Communications
5. Informatica Corporation 9. Plantronics, Inc.
10. Interwoven, Inc.
</TABLE>
--------------------------------------------------------------------------------
14
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
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 Portfolio 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: April 26, 2000
MANAGERS: Team Managed
</TABLE>
HIGHLIGHTS
-------------------------------------------------------------------------------
On June 30, 2000, the Russell 2000 Small Cap Index Portfolio had net assets of
$15,828,012 and diversified holdings of:
<TABLE>
<S> <C>
Common Stocks 96.7%
Short-Term & Other 3.3%
</TABLE>
As an investor in the Summit Russell 2000 Small Cap Index Portfolio, for every
$1 you had invested on June 30, 2000, your fund owned:
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Technology 26.8%
Financial 16.2%
Consumer Non-Durable 15.2%
Industrial 14.3%
Consumer Cyclical 13.4%
Utilities 4.0%
Basic Materials 3.7%
Short-Term & Other 3.3%
Energy 3.0%
Diversified 0.1%
</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.
--------------------------------------------------------------------------------
15
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
ZENITH BOND S&P 500 INDEX S&P MIDCAP 400 INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------- --------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $46,370,948; $22,931,184;
$71,742,602; $9,435,750) $47,112,585 $21,996,934 $127,287,807 $11,097,638
Cash -- -- -- 247,611
Receivables:
Shares sold 20,573 19,592 208,838 13,134
Securities sold 568,136 514,046 568,578 26,107
Interest and dividends 66,467 397,356 102,477 13,812
Variation margin -- -- 5,050 (36,500)
Prepaid expenses and other 8,717 3,088 3,107 4,260
----------- ----------- ------------ -----------
47,776,478 22,931,016 128,175,857 11,366,062
----------- ----------- ------------ -----------
LIABILITIES
Payables:
Investment securities purchased 526,770 887,830 549,103 172,771
Shares redeemed -- -- -- --
Bank overdraft 20,969 2,287 13,364 --
Investment advisory fees 22,794 5,371 26,193 --
Custodian and portfolio
accounting fees 16,228 14,159 9,394 5,606
Professional fees 8,722 9,037 8,536 9,580
Other accrued expenses 2,783 2,940 20,408 932
Deferred directors' compensation -- 148,990 -- --
----------- ----------- ------------ -----------
598,266 1,070,614 626,998 188,889
----------- ----------- ------------ -----------
NET ASSETS
Paid-in capital 55,249,206 29,687,786 75,046,234 7,901,882
Undistributed / (overdistributed) net
investment income (211,176) (1,728,953) (546,236) (96,311)
Accumulated net realized gain / (loss) on
investments and futures contracts (8,601,455) (5,164,181) (2,487,944) 1,750,814
Net unrealized appreciation /
(depreciation) on investments, futures
contracts, and translation of assets and
liabilities in foreign currencies 741,637 (934,250) 55,536,805 1,620,788
----------- ----------- ------------ -----------
$47,178,212 $21,860,402 $127,548,859 $11,177,173
=========== =========== ============ ===========
Shares authorized ($.10) par value 40,000,000 30,000,000 30,000,000 30,000,000
Shares outstanding 3,585,756 2,424,189 5,649,501 1,007,473
Net asset value, offering and
redemption price per share $13.16 $9.02 $22.58 $11.09
</TABLE>
THE ACCOMPANYING NOTES NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
16
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
BALANCED INDEX NASDAQ-100 INDEX RUSSELL 2000 SMALL CAP
PORTFOLIO PORTFOLIO INDEX PORTFOLIO
-------------- ---------------- ----------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at
value
(cost $14,629,026;
$10,527,199; $15,140,121) $15,526,377 $11,258,929 $15,462,460
Cash -- -- --
Receivables:
Shares sold 19,333 352 234
Securities sold 867 -- 5,765,537
Interest and dividends 99,963 459 14,040
Variation margin -- -- --
Prepaid expenses and other 16,575 309 14,150
----------- ----------- -----------
15,663,115 11,260,049 21,256,421
----------- ----------- -----------
LIABILITIES
Payables:
Investment securities purchased 40,221 190,726 5,401,219
Shares redeemed 2 188,753 7
Bank overdraft 1,672 43 9,645
Investment advisory fees -- 824 --
Custodian and portfolio
accounting fees 12,258 5,218 10,750
Professional fees 9,492 2,787 3,450
Other accrued expenses 11,877 2,988 3,338
Deferred directors'
compensation -- -- --
----------- ----------- -----------
75,522 391,339 5,428,409
----------- ----------- -----------
NET ASSETS
Paid-in capital 16,112,560 10,115,187 14,855,562
Undistributed / (overdistributed)
net investment income (510,006) (6,313) 25,534
Accumulated net realized
gain / (loss) on investments
and futures contracts (912,312) 28,106 624,577
Net unrealized
appreciation / (depreciation)
on investments, futures
contracts, and translation of
assets and liabilities in
foreign currencies 897,351 731,730 322,339
----------- ----------- -----------
$15,587,593 $10,868,710 $15,828,012
=========== =========== ===========
Shares authorized ($.10) par value 30,000,000 30,000,000 30,000,000
Shares outstanding 1,578,505 1,012,464 1,486,175
Net asset value, offering and
redemption price per share $9.87 $10.73 $10.65
</TABLE>
THE ACCOMPANYING NOTES NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
17
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
ZENITH BOND S&P 500 INDEX S&P MIDCAP 400 INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------------- ----------------------- ----------------------- ---------------------
FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS
ENDED JUNE 30, 2000 ENDED JUNE 30, 2000 ENDED JUNE 30, 2000 ENDED JUNE 30, 2000
----------------------- ----------------------- ----------------------- ---------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 61,444 $ 2,213,689 $ 106,702 $ 123,624
Dividends (net of foreign
withholding taxes of $0,
$0, $5,617; $0) 761,715 -- 1,141,838 72,449
----------- ----------- ------------ -----------
823,159 2,213,689 1,248,540 196,073
----------- ----------- ------------ -----------
EXPENSES
Investment advisory fees 239,466 130,879 295,349 26,274
Custodian fees and expenses 13,051 10,722 31,097 8,769
Portfolio accounting fees 18,205 24,516 28,201 16,291
Professional fees 4,992 4,832 5,711 5,249
Directors' fees 8,180 6,490 22,310 1,808
Transfer agent fees 3,270 3,262 3,623 1,339
Other 12,991 15,101 30,915 445
----------- ----------- ------------ -----------
300,155 195,802 417,206 60,175
Expense reimbursement -- -- -- (11,676)
----------- ----------- ------------ -----------
300,155 195,802 417,206 48,499
----------- ----------- ------------ -----------
NET INVESTMENT INCOME 523,004 2,017,887 831,334 147,574
----------- ----------- ------------ -----------
REALIZED AND UNREALIZED
GAIN / (LOSS)
Net realized gain / (loss)
on investments 8,159,357 (4,775,736) 17,671,066 928,198
Net realized gain / (loss)
on futures contracts -- -- (561,075) 1,884,630
----------- ----------- ------------ -----------
8,159,357 (4,775,736) 17,109,991 2,812,828
----------- ----------- ------------ -----------
Net change in unrealized
appreciation /
(depreciation) on
investments, futures
contracts, and translation
of assets and liabilities
in foreign currencies (3,036,031) 4,348,916 (15,256,557) (469,627)
----------- ----------- ------------ -----------
NET REALIZED AND UNREALIZED
GAIN / (LOSS) 5,123,326 (426,820) 1,853,434 2,343,201
----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 5,646,330 $ 1,591,067 $ 2,684,768 $ 2,490,775
=========== =========== ============ ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
18
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
BALANCED INDEX NASDAQ-100 INDEX RUSSELL 2000 SMALL CAP
PORTFOLIO PORTFOLIO INDEX PORTFOLIO
----------------------- ------------------------------ ---------------------------
FOR THE SIX MONTHS PERIOD FROM APRIL 26, 2000 PERIOD FROM APRIL 26, 2000
ENDED JUNE 30, 2000 TO JUNE 30,2000 TO JUNE 30, 2000
----------------------- ------------------------------ ---------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 489,869 $ 6,708 $ 9,375
Dividends (net of foreign
withholding taxes
of $415; $3; $0) 113,387 482 36,401
----------- -------- --------
603,256 7,190 45,776
----------- -------- --------
EXPENSES
Investment advisory fees 51,157 6,220 9,446
Custodian fees and expenses 15,263 886 5,581
Portfolio accounting fees 20,049 5,218 10,750
Professional fees 5,229 2,960 3,653
Directors' fees 3,974 194 291
Transfer agent fees 1,394 527 527
Other 12,715 2,337 2,583
----------- -------- --------
109,781 18,342 32,831
Expense reimbursement (19,170) (4,839) (12,589)
----------- -------- --------
90,611 13,503 20,242
----------- -------- --------
NET INVESTMENT INCOME (LOSS) 512,645 (6,313) 25,534
----------- -------- --------
REALIZED AND UNREALIZED GAIN /
(LOSS)
Net realized gain / (loss) on
investments 1,626,606 28,106 624,577
Net realized gain / (loss) on
futures contracts -- -- --
----------- -------- --------
1,626,606 28,106 624,577
----------- -------- --------
Net change in unrealized
appreciation / (depreciation)
on investments, futures
contracts, and translation of
assets and liabilities in
foreign currencies (1,294,294) 731,730 322,339
----------- -------- --------
NET REALIZED AND UNREALIZED GAIN /
(LOSS) 332,312 759,836 946,916
----------- -------- --------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 844,957 $753,523 $972,450
=========== ======== ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
19
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ZENITH PORTFOLIO BOND PORTFOLIO
-------------------------------------- --------------------------------------
FOR THE SIX MONTHS FOR THE SIX MONTHS
ENDED JUNE 30, FOR THE YEAR ENDED ENDED JUNE 30, FOR THE YEAR ENDED
(UNAUDITED) DECEMBER 31, (UNAUDITED) DECEMBER 31,
------------------ ------------------ ------------------ ------------------
2000 1999 2000 1999
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income 523,004 $ 1,139,384 $ 2,017,887 $ 7,190,709
Net realized gain /
(loss) on
investments and
futures 8,159,357 (15,155,238) (4,775,736) 69,654
Net change of
unrealized
appreciation /
(depreciation) on
investments, futures
contracts, and
translation of
assets and
liabilities in
foreign currencies (3,036,031) 15,500,859 4,348,916 (8,498,194)
------------ ------------- ------------ ------------
5,646,330 1,485,005 1,591,067 (1,237,831)
------------ ------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income (886,835) (1,534,834) (4,829,347) (6,544,239)
Net realized gain -- (29,666,177) -- --
------------ ------------- ------------ ------------
(886,835) (31,201,011) (4,829,347) (6,544,239)
------------ ------------- ------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares
sold 492,498 4,114,679 1,962,164 23,415,382
Reinvestment of
distributions 886,835 31,201,011 4,829,347 6,544,239
Payments for shares
redeemed in the
formation of the
Apex Series (54,900,222) -- (70,654,226) --
Payments for shares
redeemed (28,504,750) (129,938,136) (9,466,339) (37,512,126)
------------ ------------- ------------ ------------
(82,025,639) (94,622,446) (73,329,054) (7,552,505)
------------ ------------- ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS (77,266,144) (124,338,452) (76,567,334) 15,334,575
NET ASSETS
Beginning of period 124,444,356 248,782,808 98,427,736 113,762,311
------------ ------------- ------------ ------------
End of period $ 47,178,212 $ 124,444,356 $ 21,860,402 $ 98,427,736
============ ============= ============ ============
UNDISTRIBUTED /
(OVERDISTRIBUTED) NET
INVESTMENT INCOME $ (211,176) $ 152,655 $ (1,728,953) $ 1,076,167
============ ============= ============ ============
FUND SHARE TRANSACTIONS
Sold 37,871 305,666 195,665 2,160,763
Reinvestment of
distributions 71,913 2,727,392 518,247 615,367
Shares redeemed in the
formation of the
Apex Series (4,100,091) -- (6,856,918) --
Redeemed (2,288,671) (9,872,069) (929,976) (3,498,330)
------------ ------------- ------------ ------------
Net increase
(decrease) from
fund share
transactions (6,278,978) (6,839,011) (7,072,982) (722,200)
============ ============= ============ ============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
20
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
S&P 500 INDEX PORTFOLIO S&P MIDCAP 400 INDEX PORTFOLIO
-------------------------------------- -------------------------------------------
FOR THE SIX MONTHS FOR THE SIX MONTHS
ENDED JUNE 30, FOR THE YEAR ENDED ENDED JUNE 30, PERIOD FROM MAY 3, 1999
(UNAUDITED) DECEMBER 31, (UNAUDITED) TO DECEMBER 31,
------------------ ------------------ ------------------ -----------------------
2000 1999 2000 1999
------------------ ------------------ ------------------ -----------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 831,334 $ 2,323,223 $ 147,574 $ 232,890
Net realized gain /
(loss) on
investments and
futures 17,109,991 1,318,947 2,812,828 54,716
Net change of
unrealized
appreciation /
(depreciation) on
investments, futures
contracts, and
translation of
assets and
liabilities in
foreign currencies (15,256,557) 37,850,127 (469,627) 2,090,416
------------- ------------ ------------ ------------
2,684,768 41,492,297 2,490,775 2,378,022
------------- ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income (1,799,646) (1,983,080) (317,528) (159,248)
Net realized gain (1,720,737) (1,193,873) (1,116,730) --
------------- ------------ ------------ ------------
(3,520,383) (3,176,953) (1,434,258) (159,248)
------------- ------------ ------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares
sold 17,773,311 128,095,131 8,719,927 33,292,532
Reinvestment of
distributions 3,520,383 3,176,953 1,434,258 159,248
Payments for shares
redeemed in the
formation of the
Apex Series (164,731,938) -- (18,434,630) --
Payments for shares
redeemed (12,309,367) (16,800,128) (5,562,271) (11,707,182)
------------- ------------ ------------ ------------
(155,747,611) 114,471,956 (13,842,716) 21,744,598
------------- ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS (156,583,226) 152,787,300 (12,786,199) 23,963,372
NET ASSETS
Beginning of period 284,132,085 131,344,785 23,963,372 --
------------- ------------ ------------ ------------
End of period $ 127,548,859 $284,132,085 $ 11,177,173 $ 23,963,372
============= ============ ============ ============
UNDISTRIBUTED /
(OVERDISTRIBUTED) NET
INVESTMENT INCOME $ (546,236) $ 442,075 $ (96,311) $ 73,642
============= ============ ============ ============
FUND SHARE TRANSACTIONS
Sold 790,517 6,182,960 767,267 3,297,454
Reinvestment of
distributions 166,345 152,279 135,758 15,195
Shares redeemed in the
formation of the
Apex Series (7,039,826) -- (1,566,239) --
Redeemed (557,539) (783,304) (500,572) (1,141,390)
------------- ------------ ------------ ------------
Net increase
(decrease) from
fund share
transactions (6,640,503) 5,551,935 (1,163,786) 2,171,259
============= ============ ============ ============
<CAPTION>
BALANCED INDEX PORTFOLIO
-------------------------------------------
FOR THE SIX MONTHS
ENDED JUNE 30, PERIOD FROM MAY 3, 1999
(UNAUDITED) TO DECEMBER 31,
------------------ -----------------------
2000 1999
------------------ -----------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 512,645 $ 1,043,300
Net realized gain /
(loss) on
investments and
futures 1,626,606 (1,003,027)
Net change of
unrealized
appreciation /
(depreciation) on
investments, futures
contracts, and
translation of
assets and
liabilities in
foreign currencies (1,294,294) 2,191,646
------------ ------------
844,957 2,231,919
------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income (1,408,780) (657,172)
Net realized gain -- --
------------ ------------
(1,408,780) (657,172)
------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares
sold 1,250,146 98,304,751
Reinvestment of
distributions 1,408,780 617,172
Payments for shares
redeemed in the
formation of the
Apex Series (35,685,686) --
Payments for shares
redeemed (6,529,740) (44,828,754)
------------ ------------
(39,556,500) 54,133,169
------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS (40,120,323) 55,707,916
NET ASSETS
Beginning of period 55,707,916 --
------------ ------------
End of period $ 15,587,593 $ 55,707,916
============ ============
UNDISTRIBUTED /
(OVERDISTRIBUTED) NET
INVESTMENT INCOME $ (510,006) $ 386,128
============ ============
FUND SHARE TRANSACTIONS
Sold 124,287 9,807,128
Reinvestment of
distributions 146,090 69,542
Shares redeemed in the
formation of the
Apex Series (3,401,369) --
Redeemed (641,990) (4,525,183)
------------ ------------
Net increase
(decrease) from
fund share
transactions (3,772,982) 5,351,487
============ ============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
21
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NASDAQ-100 INDEX RUSSELL 2000 SMALL
PORTFOLIO CAP INDEX PORTFOLIO
-------------------------- --------------------------
PERIOD FROM APRIL 26, 2000 PERIOD FROM APRIL 26, 2000
TO JUNE 30, 2000 TO JUNE 30, 2000
(UNAUDITED) (UNAUDITED)
-------------------------- --------------------------
<S> <C> <C>
OPERATIONS
Net investment income /
(loss) $ (6,313) $ 25,534
Net realized gain /
(loss) on
investments and
futures 28,106 624,577
Net change of
unrealized
appreciation /
(depreciation) on
investments, futures
contracts, and
translation of
assets and
liabilities in
foreign currencies 731,730 322,339
----------- -----------
753,523 972,450
----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income -- --
Net realized gain -- --
----------- -----------
-- --
----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from shares
sold 11,131,798 15,390,041
Reinvestment of
distributions -- --
Payments for shares
redeemed (1,016,611) (534,479)
----------- -----------
10,115,187 14,855,562
----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS 10,868,710 15,828,012
NET ASSETS
Beginning of period -- --
----------- -----------
End of period $10,868,710 $15,828,012
=========== ===========
UNDISTRIBUTED /
(OVERDISTRIBUTED) NET
INVESTMENT INCOME $ (6,313) $ 25,534
=========== ===========
FUND SHARE TRANSACTIONS
Sold 1,109,644 1,536,759
Reinvestment of
distributions -- --
Redeemed (97,180) (50,584)
----------- -----------
Net increase
(decrease) from
fund share
transactions 1,012,464 1,486,175
=========== ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
22
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS ZENITH PORTFOLIO
JUNE 30, 2000
(UNAUDITED)
COMMON STOCKS - 95.74%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
------------------
CONSUMER CYCLICAL - 16.07%
America West Holdings Corp* 20,000 $ 342,500
Belo (A.H.) Corp 20,000 346,250
Costco Wholesale Corp* 15,000 495,000
Federated Department Stores* 27,000 911,250
General Motors Corp 6,936 402,722
Media General Inc 20,000 971,250
MediaOne Group* 17,300 1,147,227
Sabre Holdings Corp* 28,906 823,821
Target Corp 20,000 1,160,000
TRICON Global Restaurants Inc* 34,700 980,275
-----------
7,580,295
-----------
CONSUMER NON-DURABLE - 17.26%
Beckman Coulter Inc 15,000 875,625
Eli Lilly & Co 13,400 1,338,325
General Mills Inc 24,000 918,000
Johnson & Johnson 5,000 509,375
Pepsico Inc 24,000 1,066,500
Pharmacia Corp 15,000 775,313
Sara Lee Corp 69,000 1,332,562
Schering-Plough Corp 22,900 1,156,450
Whitman Corp 13,900 172,013
-----------
8,144,163
-----------
ENERGY - 10.03%
Chevron Corp 14,000 1,187,375
Conoco Inc 42,000 1,031,625
Exxon Mobil Corp 14,000 1,099,000
Houston Exploration Co* 11,800 296,475
Texaco Inc 21,000 1,118,250
-----------
4,732,725
-----------
FINANCIAL - 16.31%
Bank Of America Corp 17,100 735,300
Bank One Corp 22,000 584,375
Charter One Financial Inc 45,000 1,035,000
Chase Manhattan Corp 21,750 1,001,858
Fannie Mae 15,000 782,813
First Union Corp 30,000 744,375
Federal Home Loan Mortgage Corp 10,000 405,000
Golden State Bancorp Inc* 40,000 720,000
J.P. Morgan & Company 8,500 936,063
Washington Mutual Inc 26,000 750,750
-----------
7,695,534
-----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
------------------
INDUSTRIAL - 12.89%
ITT Industries Inc 34,000 $ 1,032,750
Minnesota Mining & Manufacturing
Company 13,500 1,113,750
Newport News Shipbuilding 20,500 753,375
Raytheon Co 42,500 818,125
SPX Corp* 11,000 1,330,313
Textron Inc 19,000 1,031,937
-----------
6,080,250
-----------
TECHNOLOGY - 13.23%
Computer Associates International Inc 21,000 1,074,937
Convergys Corp* 15,000 778,125
Hughes Electronics Corp* 1,452 127,413
Intel Corp 4,500 601,594
International Business Machines Corp 13,000 1,424,313
Microsoft Corp* 15,000 1,200,000
Verizon Communications* 20,400 1,036,575
-----------
6,242,957
-----------
UTILITIES - 9.95%
Bellsouth Corp 23,200 988,900
GTE Corp 15,000 933,750
Niagara Mohawk Holdings Inc* 35,000 487,812
SBC Communications Inc 27,000 1,167,750
Scana Corp 46,223 1,115,130
-----------
4,693,342
-----------
Total Common Stocks
($44,427,629) 45,169,266
-----------
SHORT-TERM INVESTMENTS - 4.12%
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
------------------
VARIABLE RATE DEMAND NOTES(1) - 4.12%
Firstar Bank (5.883% due 12/31/31) $1,905,095 $ 1,905,095
Sara Lee (5.733% due 12/31/31) 38,224 38,224
-----------
1,943,319
-----------
Total Short-Term Investments
($1,943,319) 1,943,319
-----------
TOTAL INVESTMENTS - 99.86%
(cost $46,370,948)(2) 47,112,585
-----------
OTHER ASSETS AND LIABILITIES - .14% 65,627
-----------
TOTAL NET ASSETS - 100% $47,178,212
===========
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of June 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 June 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 June 30, 2000 was $4,294,353 and
($3,552,716) respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
23
<PAGE>
SUMMIT MUTUAL FUND, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS BOND PORTFOLIO
JUNE 30, 2000
(UNAUDITED)
U.S. TREASURY OBLIGATIONS - 33.37%
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
U.S. TREASURY NOTES &
BONDS - 33.37%
7.750% due 02/15/01 $1,000,000 $ 1,008,125
0.000% due 08/15/02 481,000 424,737
6.500% due 05/15/05 250,000 252,735
5.875% due 11/15/05 1,853,000 1,821,152
5.625% due 02/15/06 1,202,000 1,165,565
7.000% due 07/15/06 500,000 517,969
6.500% due 10/15/06 1,600,000 1,618,000
6.125% due 08/15/29 481,000 486,111
-----------
Total U.S. Treasury Obligations
(cost $7,295,710) 7,294,394
-----------
MORTGAGE-BACKED SECURITIES - 4.96%
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 4.96%
(6.500% due 02/01/29) 1,148,886 1,084,092
-----------
Total Mortgage-Backed Securities
(cost $1,085,877) 1,084,092
-----------
COLLATERALIZED MORTGAGE
OBLIGATIONS - 6.80%
PRIVATE SECTOR - 6.80%
CMC2 Securities Corp. 1993 E 1 E 1CP
(0.000% due 12/25/08) 50,154 39,885
Capstead Mortgage Securities Corp C-4
(10.950% due 02/01/14) 19,465 19,464
BOAMS 1999-3 B3
(6.250% due 05/25/14) 219,066 193,712
NMFC 1998-4 B3
(6.250% due 10/25/2028) 323,654 266,409
NSCOR 1998-16 B1
(6.500% due 06/25/13) 276,848 260,424
PNCMS 1999-91P
(0.000% due 09/25/29) 1,157,881 707,145
-----------
1,487,039
-----------
Total Collateralized Mortgage
Obligations
(cost $1,431,884) 1,487,039
-----------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
ASSET-BACKED SECURITIES - 2.55%
COMMERCIAL MORTGAGE-
BACKED SECURITIES - 2.55%
Chase Commercial Mortgage Sec.
(6.600% due 12/19/07) $ 627,885 $ 556,451
-----------
Total Asset-backed Securities
(cost $604,216) 556,451
-----------
CORPORATE BONDS
AND NOTES - 51.88%
AIR TRANSPORTATION - 2.00%
Continental Airlines
(7.820% due 10/15/13) 212,933 207,673
NWA Trust No. 2 Class B
(10.230% due 06/21/14) 206,031 229,444
-----------
437,117
-----------
BANK, BANK HOLDING
COMPANIES, & OTHER
BANK SERVICES - 11.13%
Ahmanson Capital Trust
(8.360% due 12/01/26) 361,000 318,361
Banc Tec Inc.
(7.500% due 06/01/08) 361,000 152,071
CSC Holdings Sr. Nt.
(8.125% due 08/15/09) 361,000 351,217
Erac USA Finance
(7.950% due 12/15/09) 240,000 233,259
Fairfax Financial Holdings
(7.375% due 03/15/06) 240,000 209,132
GS Escrow Corp.
(6.750% due 08/01/01) 72,000 69,947
GS Escrow Corp.
(7.000% due 08/01/03) 240,000 222,547
Household Finance Corp.
(7.200% due 07/15/06) 361,000 348,020
NationsBank Corp.
(7.625% due 04/15/05) 240,000 240,215
Sovereign Bancorp
(10.500% due 11/15/06) 60,000 59,250
Svenska Handelsbanken
(7.125% due 03/07/07) 250,000 229,443
-----------
2,433,462
-----------
BASIC MATERIALS - 2.26%
LTV Corp. Sr. Nts.
(11.750% due 11/15/09) 240,000 201,600
IMC Global Nts.
(7.625% due 11/01/05) 300,000 292,843
-----------
494,443
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
24
<PAGE>
SUMMIT MUTUAL FUND, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS BOND PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
COMMUNICATIONS SERVICES - .53%
Charter Communications Sr. Nt.
(10.250% due 01/15/10) $ 120,000 $ 116,100
-----------
CONSUMER CYCLICAL - .80%
Federal-Mogul Co.
(7.375% due 01/15/06) 240,000 174,542
-----------
CONSUMER NON-DURABLE - 2.63%
Dillard Dept. Store
(7.375% due 06/01/06) 138,000 121,703
Sequa Corp. Sr. Nts.
(9.000% due 08/01/09) 240,000 230,400
World Color Press Inc. Sr. Nts.
(7.750% due 02/15/09) 240,000 222,197
-----------
574,300
-----------
ELECTRIC - 3.43%
Carolina Power & Light Sr. Nts.
(5.950% due 03/01/09) 240,000 213,479
Edison Mission Nts.
(7.730% due 06/15/09) 240,000 233,398
Niagara Mohawk Power
(8.000% due 06/01/04) 300,000 302,536
-----------
749,413
-----------
ENERGY - 3.32%
Louis Dreyfus Nts.
(6.875% due 12/01/07) 361,000 324,149
Mitchell Energy Development Corp.
(6.750% due 02/15/04) 421,000 402,467
-----------
726,616
-----------
ENTERTAINMENT & LEISURE - 2.46%
Imax Corp. Sr. Nts.
(7.875% due 12/01/05) 240,000 217,200
Royal Caribbean
(7.000% due 10/15/07) 361,000 319,876
-----------
537,076
-----------
FOOD, BEVERAGE, & TOBACCO - .96%
RJR Nabisco Inc.
(7.550% due 06/15/15) 240,000 209,859
-----------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
GAMING INDUSTRY - 1.74%
Casino Magic of Louisiana
(13.000% due 08/15/03) $ 240,000 $ 254,400
Station Casinos Inc. 144A
(9.875% due 07/01/10) 125,000 125,313
-----------
379,713
-----------
HEALTH CARE - 1.63%
Universal Health Services Sr. Notes
(8.750% due 08/15/05) 361,000 357,320
-----------
INSURANCE - 3.20%
Farmers Insurance Exchange
(8.500% due 08/01/04) 240,000 245,047
Prudential Ins. Surplus Notes
(8.100% due 07/15/15) 240,000 239,044
USF&G Capital
(8.470% due 01/10/27) 240,000 215,226
-----------
699,317
-----------
MEDIA & CABLE - 2.30%
CF Cable TV Inc.
(9.125% due 07/15/07) 240,000 255,595
Continental Cablevision
(8.300% due 05/15/06) 240,000 247,980
-----------
503,575
-----------
MEDIA CONGLOMERATE - 4.30%
News American Holdings
(6.625% due 01/09/08) 361,000 330,388
Time Warner Inc.
(8.110% due 08/15/06) 361,000 367,853
Viacom Inc. Sr. Notes
(7.750% due 06/01/05) 240,000 241,673
-----------
939,914
-----------
REAL ESTATE - 3.06%
Colonial Properties Sr. Nts.
(8.050% due 07/15/06) 361,000 346,395
Healthcare Properties Nts.
(6.875% due 06/08/05) 361,000 322,262
-----------
668,657
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
25
<PAGE>
SUMMIT MUTUAL FUND, INC. - PINNACLE SERIES
BOND PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
TELECOMMUNICATIONS - 5.17%
360 Communications Sr. Nts.
(7.500% due 03/01/06) $ 361,000 $ 357,333
Call-Net Enterprises
(0.000% due 05/15/09) 240,000 86,400
Deutsche Tel
(8.000% due 06/15/10) 250,000 252,022
Global Crossing Holdings
(9.625% due 05/15/08) 240,000 232,800
Talton Holdings Inc. Sr. Nts.
(11.000% due 06/30/07) 240,000 204,000
-----------
1,132,555
-----------
TRANSPORTATION - .95%
Midway Air Lines
(8.140% due 01/02/13) 233,085 208,343
-----------
Total Corporate Bonds and Notes
(cost $12,280,861) 11,342,322
-----------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
SHORT TERM INVESTMENTS - 1.06%
VARIABLE RATE
DEMAND NOTES(1) - 1.06%
Firstar Bank
(6.423% due 12/31/31) $ 232,636 $ 232,636
-----------
Total Short-Term Investments
(cost $232,636) 232,636
-----------
TOTAL INVESTMENTS - 100.62%
(cost $22,931,184)(2) 21,996,934
-----------
OTHER ASSETS AND LIABILITIES - (.62%) (136,532)
-----------
TOTAL NET ASSETS - 100.00% $21,860,402
===========
</TABLE>
----------
* Non-Income Producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of June 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 June 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 June 30, 2000 was $231,100 and ($1,165,350)
respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
26
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS S&P 500 INDEX PORTFOLIO
JUNE 30, 2000
(UNAUDITED)
COMMON STOCKS - 98.83%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
BASIC MATERIALS - 1.96%
Air Products & Chemicals Inc 2,289 $ 70,530
Alcan Aluminum Limited 2,201 68,231
Alcoa Inc 8,698 252,242
Allegheny Technologies Inc 924 16,632
Arch Coal Inc 0 2
Archer-Daniels-Midland Co 6,118 60,033
Barrick Gold Corp 3,961 72,041
Bemis Company 528 17,754
Bethlehem Steel* 880 3,135
Boise Cascade 572 14,801
Dow Chemical 6,603 199,328
Dupont De Nemours & Co (E.I.) 10,520 460,241
Eastman Chemical Company 792 37,818
Ecolab Inc 1,320 51,563
Englehard Corp 1,276 21,772
FMC Corp* 308 17,864
Freeport-McMoran Copper & Gold 1,629 15,068
Georgia-Pacific Group 1,717 45,071
Great Lakes Chemical 572 18,018
Hercules, Inc 1,056 14,850
Homestake Mining Co 2,641 18,157
Inco Limited* 1,937 29,781
International Paper 4,866 145,058
International Flavors & Fragrance 1,056 31,878
Louisiana-Pacific Co 1,056 11,484
Mead Corp 1,012 25,553
Newmont Mining Corp 1,673 36,179
Nucor Corp 880 29,205
Pactiv Corporation* 1,717 13,521
Phelps Dodge 836 31,089
Placer Dome Inc 3,301 31,566
Potlatch Corporation 308 10,203
PPG Industries 1,761 78,034
Praxair Inc 1,584 59,301
Rohm & Haas Co 2,201 75,935
Sigma-Aldrich Corp 1,012 29,601
Temple Inland 572 24,024
Union Carbide Corp 1,364 67,518
Union Pacific Resources Group 2,553 56,166
USX-U.S. Steel Group 880 16,335
Vulcan Materials Company 1,012 43,200
W.R. Grace & Co* 704 8,536
Westvaco Corp 1,012 25,110
Weyerhaeuser Co 2,377 102,209
Willamette Industries 1,144 31,174
Worthington Industries Inc 880 9,240
------------
2,497,051
------------
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
CAPITAL GOODS - 7.83%
Allied Waste Industries Inc* 1,893 $ 18,930
American Power Conversion Co* 1,767 72,116
Avery Dennison Co 1,144 76,791
Ball Corp 308 9,914
Boeing Co 8,979 375,434
Briggs & Stratton 220 7,535
Caterpillar Inc 3,565 120,764
Cooper Industries Inc 968 31,521
Crane Co 660 16,046
Crown Cork & Seal 1,320 19,800
Cummins Engine Co., Inc 396 10,791
Danaher Corporation 1,452 71,783
Deere & Co 2,333 86,321
Dover Co 2,069 83,924
Eaton Corp 748 50,116
Emerson Electric Co 4,357 263,054
Fluor Corp 748 23,656
General Dynamics Corp 2,025 105,806
General Electric 99,162 5,255,586
Goodrich (B.F.) Co 1,100 37,469
Honeywell International Inc 7,966 268,355
Illinois Tool Works 3,037 173,109
Ingersoll-Rand Co 1,629 65,567
ITT Industries Inc. 880 26,730
Johnson Controls 880 45,155
Lockheed Martin Corp 4,005 99,374
McDermott International 616 5,429
Millipore Corp 440 33,165
Minnesota Mining & Manufacturing Co 4,049 334,043
Molex Inc 1,981 95,336
National Service Inds 396 7,722
Navistar International Corp* 660 20,501
Northrop Grumman Corporation 704 46,640
Owens-Illinois Inc* 1,496 17,485
PACCAR Inc 792 31,433
Pall Corp 1,232 22,792
Parker-Hannifin 1,144 39,182
Pitney-Bowes Inc 2,685 107,400
Rockwell International Corp 1,937 61,016
Sanmina Corp* 1,289 110,210
Sealed Air Corp* 836 43,786
Solectron Corp* 5,898 246,979
Textron Inc 1,496 81,252
Thermo Electron Corp* 1,584 33,363
Thomas & Betts Co 572 10,940
Timken Co 616 11,473
Tyco International Limited 17,033 806,933
United Technologies Corp 4,841 285,014
Waste Management Inc 6,250 118,750
------------
9,986,491
------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
27
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P 500 INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
COMMUNICATIONS SERVICES - 5.08%
ALLTEL Corp 3,169 $ 196,280
AT & T Corp 32,174 1,017,503
BellSouth Corp 18,970 808,596
CenturyTel Inc 1,408 40,480
Global Crossing Limited* 7,658 201,501
NEXTEL Communications Inc* 7,306 447,036
SBC Communications Inc 34,375 1,486,719
Sprint Corp FON Group 8,759 446,709
Sprint Corp PCS Group Inc* 8,671 515,925
Worldcom Inc* 28,609 1,312,437
------------
6,473,186
------------
CONSUMER CYCLICAL - 7.67%
American Greetings Co Class A 660 12,540
Armstrong Holdings Inc 396 6,064
AutoZone Inc* 1,452 31,944
Bed Bath & Beyond Inc* 1,408 51,040
Best Buy Co Inc* 2,069 130,864
Black & Decker Corp 880 34,595
Broadcom* 2,205 480,277
Brunswick Corp 924 15,304
Carnival Corp 6,206 121,017
Cendant Corp* 7,174 100,436
Centex Corp 616 14,476
Circuit City Inc 2,069 68,665
Consolidated Stores Corp* 1,100 13,200
Convergys Corp* 1,620 84,038
Cooper Tire & Rubber Company 748 8,322
Costco Wholesale Corp* 4,489 148,137
Dana Corp 1,673 35,447
Delphi Automotive Systems 5,678 82,686
Dillard Inc Class A 1,100 13,475
Dollar General Corp 3,356 65,442
Dow Jones & Co 880 64,460
Dun & Bradstreet Corp 1,629 46,630
Federated Dept Stores* 2,113 71,314
Ford Motor Co 12,148 522,364
Gannett Co Inc 2,817 168,492
Gap Inc 8,627 269,594
General Motors Corp 5,600 325,150
Genuine Parts Co 1,805 36,100
Goodyear Tire & Rubber 1,584 31,680
H & R Block 968 31,339
Harcourt General Inc 704 38,280
Harley Davidson 3,080 118,580
Harrahs Entertainment Inc* 1,276 26,716
Hasbro Inc 1,937 29,176
Hilton Hotels Corp 3,697 34,659
Home Depot 23,195 1,158,300
IMS Health Inc 3,081 55,458
Interpublic Group Companies Inc 2,817 121,131
K Mart Corp* 4,974 33,885
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
CONSUMER CYCLICAL - 7.67% (CONTINUED)
Kaufman & Broad Home Corp 484 $ 9,589
Knight Ridder Inc 836 44,465
Kohl's Department Stores* 3,258 181,226
Leggett & Platt Inc 1,981 32,687
Liz Claiborne Inc 616 21,714
Lowe's Companies 3,829 157,228
Marriott International Class A 2,509 90,481
Masco Co 4,489 81,083
Mattel Inc 4,225 55,717
May Dept Stores Co 3,345 80,280
Maytag Corp 836 30,828
McGraw-Hill Companies Inc. 1,981 106,974
Meredith Corporation 528 17,820
New York Times Class A 1,717 67,822
Nike Class B 2,817 112,152
Nordstrom Inc 1,408 33,968
Office Depot Inc* 3,301 20,631
Omnicom Group 1,805 160,758
Owens-Corning Fiberglass Corp 572 5,291
Penney (J.C.) Co 2,641 48,693
Pulte Corp 440 9,515
Radioshack Corporation 1,937 91,765
Reebok International Limited* 572 9,116
Russell Co 352 7,040
Sears Roebuck & Co 3,829 124,921
Sherwin Williams 1,673 35,447
Snap-On Tools Inc 572 15,230
Spring Industries 176 5,632
Staples Inc* 4,665 71,724
Target Corp 4,445 257,810
The Limited Limited 4,314 93,290
The Stanley Works 880 20,900
Tiffany & Co 663 44,753
TJX Companies Inc 3,125 58,594
Toys "R" Us Inc* 2,465 35,897
Tribune Co 2,377 83,195
Trw Inc 1,232 53,438
VF Corp 1,188 28,289
Visteon Corp* 1,591 19,286
Wal-Mart Stores Inc 44,850 2,584,478
Whirlpool Corp 748 34,876
Young & Rubicam Inc 704 40,260
------------
9,786,140
------------
CONSUMER NON-DURABLE - 21.64%
Abbott Labs 15,493 690,407
Aetna Life And Casualty Co 1,496 96,025
Alberto-Culver Co Class B 572 17,482
Albertson's Inc 4,269 141,944
Allergan 1,320 98,340
ALZA Corp Class A* 1,012 59,835
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
28
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS S&P 500 INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
CONSUMER NON-DURABLE - 21.64%
(CONTINUED)
American Home Products Corp 13,160 $ 773,150
Amgen* 10,299 723,505
Anheuser-Busch Companies Inc 4,665 348,417
Avon Products Inc 2,421 107,735
Bard (C.R.) Inc* 528 25,410
Bausch & Lomb Inc 572 44,259
Baxter International Inc 2,949 207,352
Becton, Dickinson Co 2,509 71,977
BestFoods Inc 2,817 195,077
Biogen Inc* 1,496 96,492
Biomet Inc 1,144 43,973
Boston Scientific Corp* 4,181 91,721
Bristol-Meyers Squibb Co 19,982 1,163,952
Brown-Forman Class B 704 37,840
Campbell Soup Co 4,313 125,616
Cardinal Health Inc 2,817 208,458
Clear Channel Communications* 3,389 254,175
Clorox Co 2,377 106,519
Coca-Cola Co 24,868 1,428,356
Coca-Cola Enterprises 4,269 69,638
Colgate-Palmolive Co 5,854 350,508
Comcast Corp Class A Special* 8,759 354,740
Conagra Inc 4,974 94,817
Coors (Adolph) Class B 352 21,296
CVS Corporation 3,961 158,440
Dardeen Restaurants Inc 1,320 21,450
Deluxe Corp 748 17,625
Donnelley (R.R.) & Sons* 1,276 28,790
Fort James Corporation 2,201 50,898
Fortune Brands Inc 1,673 38,584
General Mills 3,081 117,848
Gillette Co 10,827 378,268
Great Atlantic & Pacific Tea Co Inc 396 6,584
Guidant Corp* 3,081 152,510
HCA - The Healthcare Company 5,678 172,469
HEALTHSOUTH Corporation 3,873 27,837
Heinz (H.J.) Co 3,609 157,894
Hershey Foods Corp 1,408 68,288
Humana Inc* 1,673 8,156
Johnson & Johnson Co 13,996 1,425,843
Kellogg Co 4,093 121,767
Kimberly-Clark Corp 5,502 315,677
Kroger Co* 8,363 184,509
Lilly (Eli) & Co 11,003 1,098,925
Longs Drug Stores Corp 396 8,613
Mallincrokdt Inc 704 30,580
Manor Care Inc* 1,056 7,392
McDonald's Corp 13,644 449,399
Mckesson HBOC Inc 2,817 58,981
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
CONSUMER NON-DURABLE - 21.64%
(CONTINUED)
Medimmune Inc* 2,005 $ 148,370
Medtronic Inc 12,060 600,739
Merck & Co Inc 23,547 1,804,289
Nabisco Group Holdings 3,301 85,620
Newell Rubbermaid Inc 2,861 73,671
PE Corp-PE Biosystems Group 2,069 136,295
PepsiCo Inc 14,657 651,320
Pfizer Inc 62,841 3,016,368
Pharmacia Corporation 12,615 652,038
Philip Morris Co Inc 23,855 633,648
Procter & Gamble Co 13,248 758,448
Quaker Oats Co 1,364 102,471
Quintiles Transnational Corp* 1,144 16,159
Ralston-Ralston Purina Group 3,081 61,427
Rite Aid Corp 2,597 17,043
Safeway Inc* 5,106 230,408
Sara Lee Corp 9,155 176,806
Schering-Plough Corp 14,789 746,845
Seagrams Co Limited* 4,357 252,706
Starbucks Corp* 1,704 65,072
St. Jude Medical* 836 38,352
Supervalu Inc 1,408 26,840
Sysco Corp 3,301 139,055
Tenet Healthcare Corp* 3,125 84,375
Time Warner Inc 12,940 983,440
Times Mirror Co Class A* 560 53,200
TRICON Global Restaurants* 1,540 43,505
Tupperware Corporation 572 12,584
Unilever N. V. - ADR 5,766 247,938
UnitedHealth Group Inc 1,717 147,233
UST Inc. 1,717 25,218
Viacom Inc - Class B* 15,398 1,049,942
Walgreen Co 10,123 325,834
Walt Disney Co 20,774 806,291
Watson Pharmaceuticals Inc* 968 52,030
WellPoint Health Networks* 660 47,809
Wendy's International Inc 1,188 21,161
Winn-Dixie Stores Inc 1,496 21,412
Wrigley (Wm) Jr. Co 1,144 91,735
------------
27,604,040
------------
ENERGY - 5.28%
Amerada Hess Corp 924 57,057
Anadarko Petroleum Corp 1,276 62,923
Apache Corp 1,144 67,282
Ashland Inc 748 26,227
Baker Hughes Inc 3,301 105,632
Burlington Resources Inc 2,201 84,188
Chevron Corp 6,602 559,932
Conoco Inc Class B 6,295 154,613
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
29
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P 500 INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
ENERGY - 5.28% (CONTINUED)
Exxon Mobil Corporation 34,771 $ 2,729,524
Halliburton Co 4,445 209,748
Kerr-McGee Co 968 57,052
Occidental Petroleum 3,697 77,868
Phillips Petroleum Co 2,553 129,405
Rowan Cos Inc* 924 28,067
Royal Dutch Petroleum ADR 21,611 1,330,427
Schlumberger Limited 5,546 413,870
Sunoco Inc 924 27,200
Texaco Inc 5,590 297,667
Tosco Corp 1,452 41,110
Transocean Sedco Forex Inc 2,069 110,562
Unocal Corp 2,421 80,196
USX-Marathon Group Inc 3,125 78,320
------------
6,728,870
------------
FINANCIAL - 12.59%
AFLAC Corporation 2,685 123,342
Allstate Corp 8,099 180,203
American Express Co 13,467 701,967
American General Corp 2,509 153,049
American International Group 15,581 1,830,768
AmSouth Bancorp 3,961 62,386
Aon Corporation 2,597 80,669
Associates First Capital Corp 7,350 163,997
Banc One Corp 11,576 307,488
Bank of America Corp* 17,209 739,987
Bank of New York Co Inc 7,438 345,867
BB&T Corporation 3,521 84,064
Bear Stearns Companies Inc 1,188 49,451
Capital One Financial Corp 1,981 88,402
Charles Schwab Corp 12,412 417,354
Charter One Financial Inc 2,132 49,036
Chase Manhattan 12,478 574,768
Chubb Corp 1,761 108,302
Cigna Corp 1,893 176,996
Cincinnati Financial Corp 1,673 52,595
Citigroup Inc 33,978 2,047,175
Comerica Inc 1,584 71,082
Conseco Inc 3,301 32,185
Countrywide Credit Industries Inc 1,144 34,678
Fannie Mae 10,343 539,775
Federal Home Loan Mortgage Corp 6,998 283,419
Fifth Third Bancorp 3,125 197,656
First Union Corp 9,947 246,810
Firstar Corp 9,859 207,655
FleetBoston Financial Corp 9,243 314,262
Franklin Resources Inc 2,553 77,547
Golden West Financial 1,629 66,484
Hartford Financial Services Group 2,245 125,580
Household International Inc 4,753 197,547
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
FINANCIAL - 12.59% (CONTINUED)
Huntington Bancshares 2,333 $ 36,891
Jefferson-Pilot Corp 1,056 59,598
KeyCorp 4,489 79,119
Lehman Brothers Holdings 1,188 112,340
Lincoln National Corp 1,981 71,564
Loews Corporation 1,056 63,360
Marsh & McLennan Co 2,685 280,415
MBIA Inc 1,012 48,766
MBNA Corporation 8,099 219,685
Mellon Financial Corp 5,106 186,050
Merrill Lynch & Co 3,741 430,215
MGIC Investment Corp 1,056 48,048
Morgan (J.P.) & Co Inc 1,761 193,930
Morgan Stanley, Dean Witter & Co 11,223 934,315
National City Corporation 6,206 105,890
Northern Trust 2,245 146,065
Old Kent Financial Corp 1,247 33,368
Paine Webber Inc 1,452 66,066
PNC Financial Services Group 2,949 138,234
Progressive Corp 748 55,352
Providian Financial Corp 1,408 126,720
Regions Financial Corporation 2,201 43,745
SAFECO Corp 1,320 26,235
SLM Holding Corp 1,584 59,301
SouthTrust Corp 1,673 37,852
St. Paul Companies 2,289 78,112
State Street Corp 1,629 172,776
Summit Bancorp 1,761 43,365
SunTrust Banks Inc 3,213 146,794
Synovus Financial Corp 2,817 49,650
T. Rowe Price Associates Inc 1,188 50,490
Torchmark Corp 1,320 32,588
U.S. Bancorp 7,350 141,488
Union Planters Corp 1,408 39,336
UNUMprovident Corp 2,421 48,571
Wachovia Corp 2,025 109,856
Washington Mutual Inc 5,810 167,764
Wells Fargo & Company 16,549 641,267
------------
16,057,727
------------
TECHNOLOGY - 33.75%
3COM Corporation* 3,477 200,362
Adaptec Inc* 1,012 23,023
ADC Telecommunications Inc* 2,993 251,038
Adobe Systems Inc 1,232 160,160
Advanced Micro Devices Inc* 1,496 115,566
Agilent Technologies Inc* 4,628 341,315
Altera Corp* 2,174 221,612
America Online Inc* 23,000 1,213,250
Analog Devices* 3,521 267,596
Andrew Corp* 836 28,058
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
30
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS S&P 500 INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
TECHNOLOGY - 33.75% (CONTINUED)
Apple Computer Inc* 3,258 $ 170,638
Applied Materials Inc* 7,658 694,006
Autodesk Inc 616 21,368
Automatic Data Processing Inc 6,294 337,122
Bell Atlantic* 15,625 793,945
BMC Software Inc* 2,421 88,329
Cabletron Systems* 1,805 45,576
Ceridian Corporation* 1,452 34,939
Cisco Systems Inc* 68,925 4,381,045
Citrix Systems Inc* 1,805 34,182
COMPAQ Computers Corp 17,121 437,656
Computer Associates Inc 5,800 296,888
Computer Sciences Corp* 1,673 124,952
Compuware Corporation* 3,609 37,443
Comverse Technology Inc* 1,496 139,128
Conexant Systems Inc* 1,981 96,326
Corning Corp 2,839 766,175
Dell Computer Corp* 25,616 1,263,189
Eastman Kodak 3,169 188,556
Electronic Data Systems Corp 4,753 196,061
EMC Corp Massachusetts* 20,510 1,577,988
Equifax 1,408 36,960
First Data 4,225 209,666
Gateway 2000 Inc* 3,169 179,841
Grainger (W.W.) Inc 924 28,471
GTE Corp* 9,771 608,245
Hewlett-Packard Co 10,255 1,280,593
Intel Corp 33,670 4,501,258
International Business Machines Corp 18,178 1,991,627
KLA-Tencor Corporation* 1,805 105,705
Lexmark International Group Inc -
Class A* 1,276 85,811
Linear Technology Corp 3,037 194,178
LSI Logic Corp* 2,993 161,996
Lucent Technologies 32,000 1,896,000
Maxim Integrated Products* 2,584 175,551
Mediaone Group* 6,162 408,625
Mercury Interactive Corp* 753 72,853
Micron Technology Inc* 5,458 480,645
Microsoft Corp* 52,500 4,200,000
Motorola Inc 21,390 621,647
National Semiconductor* 1,717 97,440
NCR Corporation* 968 37,692
Network Appliance Inc* 2,993 240,937
Nortel Networks Corp 28,696 1,958,502
Novell Inc* 3,345 30,941
Novellus Systems Inc* 1,238 70,024
Oracle Systems* 28,697 2,412,342
Parametric Technology Co* 2,729 30,019
Paychex Inc 3,697 155,274
PeopleSoft Inc* 2,685 44,974
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
TECHNOLOGY - 33.75% (CONTINUED)
PerkinElmer Inc 484 $ 32,005
Polaroid Corp 440 7,948
QUALCOMM Inc* 7,130 427,800
Raytheon Co - Class B 3,389 65,238
Sabre Group Holdings Inc* 1,081 30,809
Sapient Corporation* 550 58,816
Scientific-Atlanta Inc 1,584 118,008
Seagate Technology Inc* 2,113 116,215
Shared Medical System 264 19,256
Siebel Systems Inc* 2,000 327,125
Sun Microsystems* 15,757 1,432,902
Tektronix Inc 484 35,816
Tellabs Inc* 4,049 277,103
Teradyne Inc* 1,717 126,200
Texas Instruments 16,198 1,112,600
Unisys Corp* 3,125 45,508
US West Inc 5,106 437,840
Veritas Software Corporation* 3,960 447,542
Xerox Corp 6,690 138,818
Xilinx Inc* 3,213 265,273
Yahoo! Inc 5,326 659,754
------------
43,047,885
------------
TRANSPORTATION - .59%
AMR Corp* 1,496 39,551
Burlington Nrthrn Santa Fe Co 4,621 105,994
CSX Corp 2,201 46,634
Delta Air Lines Inc 1,320 66,743
FedEx Corporation* 2,993 113,734
Kansas City Southern Industries 1,100 97,556
Norfolk Southern Co 3,829 56,956
Ryder System 660 12,499
Southwest Airlines Co. 5,062 95,862
Union Pacific Corp 2,509 93,302
USAirways Group Inc* 704 27,456
------------
756,287
------------
UTILITIES - 2.44%
AES Corp* 4,138 188,796
Ameren Corporation 1,364 46,035
American Electric Power 3,231 95,724
CP & L Energy Inc 1,629 52,026
CINergy Corporation 1,584 40,293
CMS Energy Corporation 1,188 26,285
Coastal Corp 2,157 131,307
Columbia Energy Group 836 54,863
Consolidated Edison Inc 2,245 66,508
Constellation Energy Group 1,496 48,714
Dominion Resources 2,465 105,687
DTE Energy Company 1,452 44,377
Duke Power 3,697 208,418
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
31
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P 500 INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
UTILITIES - 2.44% (CONTINUED)
Eastern Enterprises 264 $ 16,632
Edison International 3,477 71,279
El Paso Energy Corporation 2,289 116,596
Enron Corp 7,218 465,561
Entergy Corp 2,465 67,017
FirstEnergy Corp 2,333 54,534
Florida Progress Corp 968 45,375
FPL Group Inc 1,805 89,348
General Public Utilities Corp 1,232 33,341
New Century Energies Inc 1,144 34,320
Niagara Mohawk Holdings Inc* 1,893 26,384
NICOR 484 15,791
Northern States Power 1,540 31,089
ONEOK Inc 308 7,989
PECO Energy Company 1,893 76,312
Peoples Energy Corporation 352 11,396
PG & E Corporation 3,873 95,373
Pinnacle West Capital 836 28,320
PP & L Corporation 1,452 31,853
Public Service Enterprises Group Inc 2,201 76,210
Reliant Energy Inc 2,993 88,481
Sempra Energy 880 14,960
Southern Co 6,778 158,007
TXU Corporation 2,773 81,804
Unicom Corporation 2,201 85,151
<CAPTION>
SHARES VALUE
<S> <C> <C>
-----------------
UTILITIES - 2.44% (CONTINUED)
Williams Companies Inc 4,401 $ 183,467
------------
3,115,623
------------
Total Common Stocks
(cost $70,535,947) 126,053,300
------------
UNIT INVESTMENT TRUST - .37%
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
-------------------
S&P 500 Depositary Receipts $ 3,238 $ 470,420
------------
Total Unit Investment Trust
(cost $442,568) 470,420
------------
SHORT-TERM INVESTMENTS(3) - .60%
VARIABLE RATE DEMAND NOTES(1) - .56%
Firstar Bank (6.423% due 12/31/31) 714,683 714,683
------------
U.S. TREASURY BILL - .04%
U.S. Treasury Bill (5.135% due
09/14/00) 50,000 49,404
------------
Total Short-Term Investments
(cost $764,087) 764,087
------------
TOTAL INVESTMENTS - 99.80%
(cost $71,742,602)(2) 127,287,807
------------
OTHER ASSETS AND LIABILITIES - .20% 261,052
------------
TOTAL NET ASSETS - 100% $127,548,859
============
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of June 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 June 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 June 30, 2000 was $59,055,139 and
($3,509,934) respectively.
(3) Securities and other current assets with an aggregate value of $734,050
have been segregated with the custodian to cover margin requirements for
the open futrues contracts as of June 30, 2000:
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
<S> <C> <C>
-------------------------------------------------------------------
Standard & Poor's 500 Index (09/00) 2 $(8,400)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
32
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P MIDCAP 400 INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
JUNE 30,2000
(UNAUDITED)
COMMON STOCKS - 75.59%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
BASIC MATERIALS - 3.45%
Airgas Inc* 700 $ 3,981
Ak Steel Holding Corp 1,040 8,320
Albemarle Corp 468 9,243
Bowater Inc 523 23,077
Cabot Corp 654 17,822
Carpenter Technology Inc 228 4,817
Chesapeake Corporation 175 5,184
Cleveland-Cliffs Corp 114 2,943
Consolidated Papers 890 32,541
Crompton Corporation 1,187 14,541
Cytec Ind* 415 10,245
Dexter Corp 233 11,184
Ethyl Corp 826 2,065
Ferro Corp 352 7,392
Fuller (H.B.) Co 126 5,741
Georgia Gulf Corp 299 6,223
Georgia-Pacific Co Timber Group 823 17,797
P.H. Glatfeler Co 415 4,228
Hanna (M.A.) Co 476 4,284
IMC Global Inc 1,125 14,625
Longview Fibre Co 523 5,786
Lubrizol Corp 534 11,214
Lyondell Chemical Company 1,173 19,648
Martin Marietta Materials Inc 468 18,925
MAXXAM Inc* 63 1,118
Minerals Technologies Inc 225 10,350
Olin Corporation 461 7,607
Rayonier Inc 285 10,224
RPM Inc 1,058 10,712
Schulman (A.) Inc 299 3,607
Solutia Inc 1,072 14,740
Sonoco Products Inc 1,005 20,665
Southdown Inc 354 20,441
UCAR International Inc* 461 6,022
Universal Corporation 296 6,253
Valspar Corp 230 7,763
Wausau-Mosinee Paper Mills 522 4,470
----------
385,798
----------
CAPITAL GOODS - 6.04%
AGCO Corp 589 7,215
Albany Intl Corp Class A* 301 4,365
American Standard Co* 704 28,864
Ametek Inc 304 5,320
Carlisle Compaines Inc 296 13,320
Diebold Inc 698 19,457
Donaldson Co Inc 465 9,184
Federal Signal Corp 465 7,673
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CAPITAL GOODS - 6.04% (CONTINUED)
Flowserve Corporation* 360 $ 5,423
Granite Construction Inc 284 6,958
Harsco Corporation 406 10,353
Hillenbrand Industries 639 20,009
HON Industries 593 13,936
Hubbell Inc Class B 645 16,448
Jabil Circuit Inc* 1,749 86,794
Jacobs Engineering Group Inc* 244 7,976
Kaydon Corp 298 6,258
Kennametal Inc 296 6,346
MagneTek Inc* 234 1,872
Miller (Herman) Inc 772 19,976
Newport News Shipbuilding Inc 343 12,605
Nordson Corp 171 8,657
Pentair Corp 473 16,792
Precision Castparts Inc 238 10,770
Quanta Services Inc* 560 30,800
Reynolds & Reynolds Class A 762 13,907
Ryerson Tull Inc 239 2,480
SCI Systems Inc* 1,422 55,725
Sensormatic Electronics Corp* 763 12,065
Sequa Corporation 112 4,277
SPX Corp* 300 36,281
Standard Register Co 287 4,090
Stewart & Stevenson Services Inc 288 4,338
Symbol Technologies Inc 1,323 71,434
Tecumseh Products Co Class A 185 7,065
Teleflex Inc 362 12,942
Trinity Industries 403 7,456
Vishay Intertechnology Inc* 1,350 51,216
Wallace Computer Services 413 4,078
York International Corp New Co 402 10,151
----------
674,876
----------
COMMUNICATIONS SERVICES - 1.38%
Broadwing Inc* 2,130 55,247
Comsat Corp 531 12,479
Powerwave Technologies Inc* 600 26,400
Telephone & Data Systems Inc 598 59,949
----------
154,075
----------
CONSUMER CYCLICAL - 9.51%
Abercrombie & Fitch Co* 1,005 12,248
ACNielsen* 583 12,826
American Eagle Outfitters* 468 6,552
Apollo Group Inc* 760 21,280
Arvin Inds Inc 243 4,222
Axciom Corporation* 838 22,836
Bandag Inc 228 5,529
Barnes & Noble Inc* 699 15,553
Belo (A.H.) Corp 1,176 20,360
BJ's Wholesale Club Inc* 715 23,595
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
33
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS S&P MIDCAP 400 INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER CYCLICAL - 9.51% (CONTINUED)
Blyth Inc* 491 $ 14,485
Borders Group* 766 11,921
Borg-Warner Automotive Inc 284 9,976
Burlington Industries Inc* 524 884
Callaway Golf Company 761 12,414
CDW Computer Centers* 836 52,250
Cintas Corp* 1,671 61,305
Claire's Stores Inc 521 10,029
Clayton Homes Inc 1,366 10,928
DeVRY Inc* 700 18,506
Dollar Tree Stores Inc* 1,012 40,037
Family Dollar Stores Inc 1,710 33,452
Fastenal Co 362 18,326
Federal-Mogul Corp 716 6,847
Furniture Brands International Inc* 478 7,230
Galileo International Inc 876 18,287
GTECH Holdings Corp* 350 7,941
Harte-Hanks Inc 661 16,525
Houghton Mifflin Co 300 14,006
International Game Technology* 732 19,398
International Speedway Corp - Class A 528 21,846
Jones Apparel Group* 1,192 28,012
Lancaster Colony Corp 405 7,898
Lands' End Inc* 296 9,879
Lear Corporation* 654 13,080
Lee Enterprises 422 9,838
Mandalay Resort Group* 889 17,780
Mark IV Industries 459 9,582
Media General Inc Class A 246 11,946
Meritor Automotive Inc* 672 7,392
Modine Manufacturing Co 293 7,911
Mohawk Industries* 594 12,920
Navigant Consulting Co* 413 1,755
NCH Corp 57 2,063
NCO Group Inc* 242 5,596
Neiman-Marcus Group Inc* 477 14,101
OfficeMax Inc* 1,124 5,620
Ogden Corp* 478 4,302
Park Place Entertainment* 3,012 36,709
Payless ShoeSource Inc* 233 11,941
Pittston Brink's Group 514 7,035
Readers Digest Association 1,059 42,095
Rollins Inc 296 4,403
Ross Stores Inc 881 15,032
Saks Inc* 1,419 14,900
Scholastic Corp* 172 10,514
Shaw Industries Inc 1,307 16,338
Sotheby's Holdings 586 10,255
Stewart Enterprises Inc Class A 1,057 3,733
Superior Industries Inc 246 6,335
Sylvan Learning Systems Inc* 520 7,150
Tech Data Corp* 525 22,870
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER CYCLICAL - 9.51% (CONTINUED)
Unifi Inc* 588 $ 7,277
USG Corp 478 14,519
Viad Corporation 942 25,670
Warnaco Group (The) Class A 538 4,170
Washington Post Class B 108 51,619
Wellman Inc 347 5,617
Westpoint Stevens Inc 530 5,896
Williams-Sonoma Inc* 541 17,549
----------
1,062,896
----------
CONSUMER NON-DURABLE - 6.45%
Banta Corporation 246 4,659
Bergen Brunswig Corp Class A 1,310 7,205
Bob Evans Farms Inc 400 5,975
Brinker International Inc* 647 18,925
Buffets Inc* 414 5,253
Carter-Wallace Inc 461 9,278
CBRL Group Inc 586 8,607
Chris-Craft Industries Inc* 355 23,452
Church & Dwight Co 366 6,588
Dean Foods Co 358 11,344
Dial Corp 1,054 10,935
Dole Food Company Inc 539 7,546
Dreyer's Grand Ice Cream Inc 286 6,006
Energizer Holdings Inc* 1,027 18,743
Flowers Industries Inc 999 19,918
Hannaford Brothers Company 415 29,828
Hispanic Broadcasting Corp* 1,088 36,040
Hormel Foods Corporation 1,414 23,773
International Multifoods Inc 180 3,116
Interstate Bakeries Corp 695 9,730
Iowa Beef Processing Inc 1,058 16,333
Kelly Services Inc Class A 354 8,186
Lance Inc 295 2,655
Lone Star Steakhouse & Saloon Inc* 343 3,473
Manpower Inc 760 24,320
McCormick & Co 704 22,880
Modis Professional Services Inc* 946 7,213
Outback Steakhouse Inc* 757 22,142
Papa Johns International Inc* 297 7,277
Perrigo Co* 715 4,513
Premier Parks Inc* 769 17,495
PSS World Medical Inc* 706 4,743
RJ Reynolds Tobacco Holdings Inc 1,070 29,893
Robert Half International* 1,772 50,502
Ruddick Corp 467 5,516
Smucker (The J.M.) Class A 291 5,602
Suiza Foods Corp* 300 14,663
Tyson Foods Inc Class A 2,241 19,609
Universal Foods Corp 479 8,862
Univision Commiunications Inc* 1,005 104,016
Valassis Communication* 541 20,626
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
34
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P MIDCAP 400 INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 6.45% (CONTINUED)
Westwood One Inc* 1,075 $ 36,684
Whitman Corp 1,408 17,424
----------
721,548
----------
ENERGY - 5.75%
BJ Services 850 53,125
Devon Energy Corporation 835 46,917
ENSCO International Inc 1,357 48,598
Global Marine Inc* 1,716 48,370
Grant Prideco Inc* 1,064 26,600
Hanover Compressor Co* 544 20,672
Helmerich & Payne 479 17,903
Murphy Oil Corp 461 27,401
Nabors Industries* 1,363 56,650
Noble Affiliates 580 21,605
Noble Drilling Corporation* 1,298 53,461
Ocean Energy Inc* 1,651 23,424
Pennzoil-Quaker State Co 768 9,264
Pioneer Natural Resources Co* 999 12,737
Santa Fe Synder Corp* 1,827 20,782
Smith International Inc* 476 34,659
Tidewater Inc 538 19,368
Ultramar Diamond Shamrock Corp 838 20,793
Valero Energy Corp 539 17,113
Varco International Inc* 892 20,739
Weatherford International 1,064 42,359
----------
642,540
----------
FINANCIAL - 7.84%
Allmerica Financial Corp 533 27,916
Ambac Financial Group Inc 701 38,424
American Financial Group Inc 585 14,515
Associated Banc-Corp 707 15,421
Astoria Financial Corp 533 13,725
Banknorth Group Inc 1,500 22,969
CCB Financial Corp 408 15,096
City National Corp 471 16,367
Compass Bancshares Inc 1,122 19,144
Dime Bancorp Inc 1,075 16,931
E*Trade Group Inc* 2,807 46,316
Edwards (A.G.) Inc 884 34,476
Everest Reinsurance Holdings 469 15,418
FINOVA (The) Group Inc 596 7,748
First Securtiy Corp 1,943 26,352
First Tennessee National Corp 1,294 21,432
First Virginia Banks Inc 479 16,675
Firstmerit Corp 886 18,938
GreenPoint Financial Corp 1,063 19,931
Hibernia Corp 1,590 17,291
Horace Mann Educators 410 6,150
HSB Group Inc 292 9,089
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCIAL - 7.84% (CONTINUED)
Keystone Financial Inc 476 $ 10,115
Legg Mason Inc 582 29,100
Marshall & Isley Corp 1,058 43,907
Mercantile Bankshares Corp 698 20,809
National Commerce Bancorp 1,065 17,107
North Fork Bancorporation Inc 1,688 25,531
Ohio Casualty Corp 591 6,279
Old Republic International Corp 1,243 20,510
Pacific Century Finacial Corp 776 11,349
Protective Life Corp 644 17,147
Provident Financial Group 475 11,311
ReliaStar Financial Corp 882 46,250
Sovereign Bancorp Inc 2,177 15,307
TCF Financial Corp 824 21,167
The PMI Group Inc 442 20,995
Unitrin Inc 706 20,739
Waddell & Reed Financial Inc 830 27,234
Webster Financial Corporation 462 10,251
Westamerica Bancorporation 361 9,431
Wilmington Trust Corp 305 13,039
Zions Bancorporation 833 38,225
----------
876,127
----------
HEALTH CARE - 9.54%
Acuson Corp* 247 3,335
Appria Healthcare Group Inc* 524 6,419
Beckman Coulter Inc 292 17,046
Chiron Corp* 1,780 84,550
Covance Inc* 580 5,111
Dentsply International Inc 527 16,238
Edwards Lifesciences Corp* 589 10,897
Express Scripts Inc* 364 22,614
First Health Group Corp* 477 15,652
Forest Laboratories Class A* 830 83,830
Foundation Health Systems-A* 1,191 15,483
Genzyme Corp* 828 49,214
Gilead Sciences Inc* 421 29,944
Health Management Association
Class A* 2,441 31,886
ICN Pharmaceuticals Inc 770 21,416
IDEC Pharmaceuticals Corp* 437 51,266
INCYTE Genomics Inc* 270 22,191
IVAX Corp* 1,582 65,653
Lincare Holdings Inc* 532 13,101
Millennium Pharmaceuticals Inc* 884 98,898
Minimed Inc* 300 35,400
Mylan Laboratories 1,290 23,543
Omnicare Inc 892 8,084
Oxford Health Plans* 818 19,479
PacifiCare Health Systems* 420 25,279
Quest Diagnostics Inc* 400 29,900
Quorum Health Group Inc* 704 7,260
Sepracor Inc* 722 87,085
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
35
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS S&P MIDCAP 400 INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
HEALTH CARE - 9.54% (CONTINUED)
STERIS Corp* 656 $ 5,822
Stryker Corp 1,900 83,125
Sybron International Corp* 1,013 20,070
Trigon Healthcare Inc* 403 20,780
VISX Inc* 644 18,072
Cybex Computer Corp 411 17,956
----------
1,066,599
----------
TECHNOLOGY - 16.56%
Adtran Inc* 404 24,190
Affiliated Computer Svcs - A* 478 15,804
ANTEC Corp* 400 16,625
Arrow Electronics Inc* 946 29,326
Atmel Corporation* 2,181 80,424
Avnet Inc 421 24,944
Burr-Brown Corp* 534 46,291
Cadence Design Sys Inc* 2,415 49,206
Cambridge Technology Partners* 593 5,170
Checkfree Holdings Corporation* 535 27,586
Cirrus Logic Inc* 650 10,400
Comdisco 1,524 34,004
Commscope Inc* 489 20,049
Concord Efs Inc* 2,035 52,910
CSG Systems International Inc* 487 27,302
Cypress Semi-Conductor* 1,200 50,700
DST Systems Inc* 640 48,720
Electronic Arts* 644 46,972
Fiserv Inc* 1,193 51,597
Gartner Group Inc - Class B* 881 8,700
Harris Corp 734 24,039
Imation Corporation* 356 10,458
Informix Corp* 2,622 19,501
Integrated Device Inc* 901 53,947
Intuit Inc* 1,941 80,309
Investment Technology Group* 299 11,811
Keane Inc* 708 15,311
L-3 Communications Holdings* 306 17,461
Legato Systems Inc* 831 12,569
Litton Inds* 463 19,446
Macromedia Inc* 478 46,217
MarchFirst Inc* 1,500 27,375
Mentor Graphics Corp* 643 12,780
Micrel Inc* 800 34,750
Microchip Technologies Inc* 763 44,457
Network Associates Inc* 1,365 27,812
NOVA Corp* 716 20,003
NVIDIA Corp* 596 37,883
Policy Management Systems Co* 353 5,427
Polycom Inc* 306 28,793
QLogic Corporation* 715 47,235
Quantum Corp-DLT & Storage* 1,591 15,413
Rational Software Corp* 882 81,971
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 16.56% (CONTINUED)
Sawtek Inc* 415 $ 23,888
Semtech Corp* 329 25,163
Storage Technology Corp* 998 10,916
Structural Dynamics Research* 353 5,317
SunGard Data Systems Inc* 1,250 38,750
Sybase Inc* 818 18,814
Sykes Enterprises Inc* 415 5,343
Symantec Corp* 589 31,769
Synopsys Inc* 700 24,194
Titan Corporation* 504 22,554
Transaction Systems Architects Inc* 306 5,240
Transwitch Corp* 379 29,254
Triquint Semiconductor Corp* 362 34,639
Vitesse Semiconductor Corp* 1,825 134,249
Waters Corp* 600 74,888
----------
1,850,866
----------
TRANSPORTATION - .97%
Airborne Freight Corp 475 8,995
Alaska Airgroup Inc* 246 6,673
Alexander & Baldwin Inc 418 9,222
Arnold Industries Inc 238 2,871
C.H. Robinson Worldwide Inc 482 23,859
CNF Transportation Inc 474 10,784
GATX Corp 477 16,218
Hunt (J.B.) Transportation Services
Inc 353 5,449
Overseas Shipholding Group 346 8,520
Swift Transportation Co Inc* 644 9,016
Wisconsin Central Transportion Corp* 521 6,773
----------
108,380
----------
UTILITIES - 8.10%
AGL Resources Inc 543 8,654
Allegheny Energy Inc 1,074 29,401
Alliant Energy Corp 771 20,046
American Water Works Inc 950 23,750
Black Hills Corp 226 5,099
Calpine Corporation* 1,206 79,295
Cleco Corporation 230 7,705
CMP Group Inc 305 8,940
Conectiv Inc 934 14,535
DPL Inc 1,316 28,870
DQE Inc 758 29,941
Dynegy Inc 1,413 96,526
Energy East Corporation 1,161 22,132
Hawaiian Electric Industries Inc 304 9,975
IDACORP Inc 361 11,642
IPALCO Inc 834 16,784
Kansas City Power & Light Co 599 13,478
KeySpan Corporation 1,308 40,221
Kinder Morgan Inc 1,118 38,641
LG&E Energy Corp 1,292 30,847
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
36
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
S&P MIDCAP 400 INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
UTILITIES - 8.10% (CONTINUED)
MCN Energy Group Inc 834 $ 17,827
Minnesota Power & Light 715 12,378
Montana Power Co 1,073 37,890
National Fuel Gas Co 366 17,843
NiSource Inc 1,238 23,058
Northeast Utilities 1,343 29,210
NSTAR 592 24,087
OGE Energy Corp 767 14,190
Potomac Electric Power Co 1,177 29,425
Public Service Company of New Mexico 409 6,314
Puget Sound Energy Inc 830 17,689
Questar 822 15,926
SCANA Corp 1,011 24,390
Sierra Pacific Resources Inc 770 9,673
TECO Energy Inc 1,291 25,901
UtiliCorp United Inc 934 18,563
Vectren Corp 595 10,264
Washington Gas Light Co 467 11,237
Wisconsin Energy Corp 1,175 23,278
----------
905,625
----------
Total Common Stocks
(cost $6,788,805) 8,449,330
----------
UNIT INVESTMENT TRUST - 2.57%
S&P Mid-Cap 400 Depositary Receipts 3,231 286,750
----------
Total Unit Investment Trust
(cost $285,388) 286,750
----------
SHORT-TERM INVESTMENTS(3) - 21.13%
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
------------------
VARIABLE RATE DEMAND NOTES(1) - 15.39%
American Family (6.306% due 12/31/31) $386,858 $ 386,858
Firstar Bank (6.423% due 12/31/31) 380,873 380,873
General Mills (6.278% due 12/31/31) 427,051 427,051
Sara Lee (6.273% due 12/31/31) 300,334 300,334
Wisconsin Corp.(6.343% due 12/31/31) 24,652 24,652
Wisconsin Electric (6.306% due
12/31/31) 200,170 200,170
-----------
1,719,938
-----------
U.S. TREASURY BILL - 5.74%
U.S. Treasury Bill (0.000% due
09/21/00) 650,000 641,620
-----------
Total Short-Term Investments
(cost $2,361,557) 2,361,558
-----------
TOTAL INVESTMENTS - 99.29%
(cost $9,435,750)(2) 11,097,638
-----------
OTHER ASSETS AND LIABILITIES - .71% 79,535
-----------
TOTAL NET ASSETS - 100% $11,177,173
===========
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of June 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 June 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 June 30, 2000 was $2,032,585 and
($370,697) respectively.
(3) Securities and other current assets with an aggregate value of $2,441,500
have been segregated with the custodian to cover margin requirements for
the open futrues contracts as of June 30, 2000:
<TABLE>
<CAPTION>
Unrealized
Appreciation/
Type Contracts (Depreciation)
<S> <C> <C>
---------------------------------------------------------------------
Standard & Poor's MidCap 400 Index
(09/00) 10 $ (41,100)
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
37
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS BALANCED INDEX PORTFOLIO
JUNE 30, 2000
(UNAUDITED)
COMMON STOCKS - 57.74%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
BASIC MATERIALS - 1.10%
Air Products & Chemicals Inc 154 $ 4,745
Alcan Aluminium Ltd. 154 4,774
Alcoa Inc 618 17,922
Allegheny Technologies Inc 61 1,098
Archer-Daniels-Midland Company 430 4,219
Barrick Gold Corp 277 5,038
Bemis Company 31 1,042
Boise Cascade 31 802
Dow Chemical 462 13,947
Du Pont (E.I.) 738 32,281
Eastman Chemical Company 61 2,913
Ecolab Inc 92 3,594
Englehard Corp 92 1,570
FMC Corp* 31 1,798
Freeport-McMoran Copper & Gold* 123 1,138
Georgia-Pacific Group 123 3,229
Great Lakes Chemical 31 977
Hercules Inc 61 858
Homestake Mining Co 184 1,265
Inco Limited* 123 1,891
International Paper Co 350 10,439
International Flavors & Fragrance 61 1,841
Louisiana Pacific Co 61 663
Mead Corp 61 1,540
Newmont Mining Corp 123 2,660
Nucor Corp 61 2,024
Pactiv Corporation* 123 969
Phelps Dodge 61 2,268
Placer Dome Inc 246 2,352
Potlatch Corporation 31 1,027
PPG Industries 123 5,450
Praxair Inc 123 4,605
Rohm & Haas Co 154 5,313
Sigma-Aldrich Corp 61 1,784
Temple-Inland Inc 31 1,302
Union Carbide Corp 92 4,554
Union Pacific 184 4,048
USX-U.S. Steel Group Inc 61 1,132
Vulcan Materials Company 61 2,604
Grace (W.R.) & Co.* 61 740
Westvaco Corp 61 1,514
Weyerhaeuser Corp 154 6,622
Willamette Industries 92 2,507
Worthington Industries Inc 61 641
----------
173,700
----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CAPITAL GOODS - 4.60%
Allied Waste Industries Inc.* 123 $ 1,230
American Power Conversion Co* 129 5,265
Avery Dennison Corp 92 6,176
Ball Corp 31 998
Boeing Co 676 28,265
Briggs & Stratton Corp 31 1,062
Caterpillar Inc 246 8,333
Cooper Industries 61 1,986
Crane Co 61 1,483
Crown Cork & Seal 92 1,380
Cummins Engine Co Inc 31 845
Danaher Corporation 92 4,548
Deere & Co 154 5,698
Dover Corp 154 6,247
Eaton Corp 61 4,087
Emerson Electric Co 307 18,535
Fluor Corp 61 1,929
General Dynamics Corp 154 8,047
General Electric Co 7,098 376,194
Goodrich (B.F.) 92 3,134
Honeywell International Inc 584 19,674
Illinois Tool Works Inc 215 12,255
Ingersoll-Rand Co 123 4,951
ITT Industries Inc. 61 1,853
Johnson Controls Inc 61 3,130
Lockheed Martin Corp 277 6,873
Mcdermott International 31 273
Millipore Corp 31 2,337
Minnesota Mining & Manufacturing Co 277 22,853
Molex Inc 154 7,411
National Service Industries 31 605
Navistar International* 31 963
Northrop Grumman Corporation 61 4,041
Owens-Illinois, Inc.* 123 1,438
PACCAR Inc 61 2,421
Pall Corp 92 1,702
Parker-Hannifin Corp 92 3,151
Pitney-Bowes Inc 184 7,360
Rockwell International Corp 123 3,875
Sanmina Corp* 94 8,037
Sealed Air Corp* 61 3,195
Solectron Corp* 430 18,006
Textron Inc 92 4,997
Thermo Electron Corp* 123 2,591
Thomas & Betts Co 31 593
Timken Co 31 577
Tyco International Limited 1,229 58,220
United Technologies Corp 338 19,900
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
38
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
BALANCED INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CAPITAL GOODS - 4.60% (CONTINUED)
Waste Management 430 $ 8,170
----------
716,894
----------
COMMUNICATIONS SERVICES - 2.96%
ALLTEL Corp 215 13,317
AT&T Corp 2,305 72,896
BellSouth Corp 1,352 57,629
CenturyTel Inc 92 2,645
Global Crossing Limited* 553 14,551
NEXTEL Communications Class A* 492 30,104
SBC Communications, Inc. 2,458 106,307
Sprint Corp FON Group 615 31,365
Sprint Corp PCS Group* 645 38,378
WorldCom Inc* 2,044 93,769
----------
460,961
----------
CONSUMER CYCLICAL - 4.57%
American Greetings Co Class A 61 1,159
Armstrong World 31 475
AutoZone Inc* 92 2,024
Bed Bath & Beyond Inc* 92 3,335
Best Buy Co Inc* 154 9,741
Black & Decker Corp 61 2,398
Broadcom Corporation* 162 35,286
Brunswick Corp 61 1,010
Carnival Corporation 430 8,385
Cendant Corporation* 522 7,308
Centex Corp 31 729
Circuit City Group 154 5,111
Consolidated Stores Corp* 92 1,104
Convergys Corp* 118 6,121
Cooper Tire & Rubber Company 61 679
Costco Wholesale Corporation* 307 10,131
Dana Corp 123 2,606
Delphi Automotive Systems 399 5,810
Dillard Inc 92 1,127
Dollar General Corporation 230 4,485
Dow Jones & Co 61 4,468
Dun & Bradstreet Corp 123 3,521
Federated Department Stores* 154 5,198
Ford Motor Co 860 36,980
Gannett Co Inc 215 12,860
Gap (The) 615 19,219
General Motors Corp 400 23,225
Genuine Parts Co 123 2,460
Goodyear Tire & Rubber 123 2,460
H&R Block 61 1,975
Harcourt General Inc. 61 3,317
Harley-Davidson 246 9,471
Harrah's Entertainment* 92 1,926
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER CYCLICAL - 4.57% (CONTINUED)
Hasbro Inc 154 $ 2,320
Hilton Hotels Corp 277 2,597
Home Depot Inc 1,644 82,097
IMS Health Inc 215 3,870
Interpublic Group Companies Inc 215 9,245
K Mart Corp* 369 2,514
Kaufman & Broad Home Corp 31 614
Knight-Ridder Inc 61 3,244
Kohl's Corp* 246 13,684
Leggett & Platt Inc 154 2,541
Liz Claiborne Inc 31 1,093
Lowe's Companies 277 11,374
Marriott International Class A 184 6,636
Masco Co 307 5,545
Mattel Co 307 4,049
May Department Stores Co 246 5,904
Maytag Corp 61 2,249
McGraw-Hill Companies Inc 154 8,316
Meredith Corporation 31 1,046
New York Times Class A 123 4,859
NIKE Inc 215 8,560
Nordstrom Inc 92 2,220
Office Depot Inc* 246 1,538
Omnicom Group 123 10,955
Owens Corning 31 287
Penney (JC) Co Inc 184 3,393
Pulte Corp 31 670
RadioShack Corporation 154 7,296
Reebok International Limited* 31 494
Russell Corp 31 620
Sears Roebuck & Co 277 9,037
Sherwin-Williams 123 2,606
Snap-On Inc. 31 825
Staples Inc* 338 5,197
Target Corp 307 17,806
The Limited 308 6,661
The Stanley Works 61 1,449
Tiffany & Co 49 3,308
TJX Companies Inc 215 4,031
Toys R Us Hldg. Cos.* 184 2,680
Tribune Co 184 6,440
TRW Inc 300 13,013
VF Corp 92 2,191
Visteon Corp* 113 1,365
Wal-Mart Stores Inc 3,196 184,164
Whirlpool Corp 61 2,844
Young & Rubicam Inc 61 3,488
----------
713,039
----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
39
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS BALANCED INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 5.99%
Alberto-Culver Co Class B 31 $ 947
Albertson's Inc 307 10,208
Anheuser-Busch Companies Inc 338 25,244
Avon Products Inc 184 8,188
BestFoods Inc 215 14,889
Brown-Foreman Class B 61 3,279
Campbell Soup Co 307 8,941
Cardinal Health Inc 215 15,910
Clear Channel Communications* 246 18,450
Clorox Co 184 8,246
Coca Cola Co 1,782 102,354
Coca-Cola Enterprises 307 5,008
Colgate-Palmolive Co 430 25,746
Comcast Corp Class A Special* 615 24,908
ConAgra Inc 369 7,034
Coors (Adolph) Class B 31 1,876
CVS Corporation 277 11,080
Darden Restaurants 92 1,495
Deluxe Corp 61 1,437
Donnelley (RR) & Sons 92 2,076
Energizer Holdings Inc* 82 1,497
Fort James Corporation 154 3,561
Fortune Brands Inc. 123 2,837
General Mills 215 8,224
Gillette Co 768 26,832
Great Atlantic & Pacific 31 515
Heinz (H.J.) Co 246 10,763
Hershey Foods 92 4,462
Kellogg Co 277 8,241
Kimberly-Clark Corp 399 22,893
Kroger Co* 584 12,885
Longs Drug Stores Corp 31 674
McDonald's Corp 983 32,378
McKesson HBOC Inc 215 4,502
Nabisco Group Holdings 246 6,381
Newell Rubbermaid Inc 215 5,536
PepsiCo Inc 1,045 46,437
Philip Morris Co Inc 1,690 44,891
Procter & Gamble Co 953 54,559
Quaker Oats Co 92 6,912
Ralston-Ralston Purina Group 246 4,905
Rite Aid Corp 184 1,208
Safeway Inc* 369 16,651
Sara Lee Corp 645 12,457
Seagrams Co Limited 307 17,806
Starbucks Corp* 202 7,714
Supervalu Inc. 92 1,754
Sysco Corp 246 10,363
Time Warner Inc 922 70,072
TRICON Global Restaurants* 123 3,475
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 5.99% (CONTINUED)
Tupperware Corporation 31 $ 682
Unilever N.V. - ADR 399 17,157
UST Inc. 123 1,807
Viacom Inc Class B* 1,092 74,454
Walgreen Co 707 22,757
Walt Disney Co 1,475 57,248
Wendy's International Inc 92 1,639
Winn-Dixie Stores Inc 92 1,317
Wrigley (Wm) Jr. Co 92 7,377
----------
933,139
----------
ENERGY - 3.08%
Amerada Hess Corp 61 3,767
Anadarko Petroleum Corp 92 4,537
Apache Corp 92 5,411
Ashland Inc 61 2,139
Baker Hughes Inc 246 7,872
Burlington Resources Inc 154 5,891
Chevron Corp 461 39,099
Conoco Inc Class B 461 11,323
Exxon Mobil Corporation 2,489 195,387
Halliburton Co 307 14,487
Kerr-McGee Co 61 3,595
Occidental Petroleum 277 5,834
Phillips Petroleum Co 184 9,327
Rowan Companies Inc* 61 1,853
Royal Dutch Petroleum ADR 1,537 94,619
Schlumberger Limited 399 29,775
Sunoco Inc 61 1,796
Texaco 399 21,247
Tosco Corp 92 2,605
Transocean Sedco Forex Inc 145 7,748
Unocal Corp 184 6,095
USX-Marathon Group Inc 215 5,388
----------
479,795
----------
FINANCIAL - 7.30%
AFLAC Corporation 184 8,453
Allstate Corp 584 12,994
American Express Co 921 48,007
American General Corp 184 11,224
American International Group Inc 1,106 129,955
AmSouth Bancorp Inc 277 4,363
Aon Corporation 184 5,716
Associates First Capital Corp 522 11,647
Bank One Corp 830 22,047
Bank of America Corp 1,229 52,847
Bank of New York 522 24,273
BB&T Corporation 246 5,873
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
40
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
BALANCED INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCIAL - 7.30% (CONTINUED)
Bear Stearns Companies Inc. 92 $ 3,830
Capital One Financial Corp. 154 6,872
Charles Schwab Corp 876 29,456
Charter One Financial Inc 130 2,990
Chase Manhattan Corp 876 40,351
Chubb Corp 123 7,565
CIGNA Corp 123 11,501
Cincinnati Financial Corp 123 3,867
Citigroup Inc 2,428 146,287
Comerica Inc 123 5,520
Conseco Inc 246 2,399
Countrywide Credit Industries Inc 92 2,789
Fannie Mae 738 38,514
Federal Home Loan Mortgage Corp 492 19,926
Fifth Third Bancorp 215 13,599
First Union Corp 707 17,542
Firstar Corp 707 14,891
Fleet Boston Financial Corp 645 21,930
Franklin Resources Inc 184 5,589
Golden West Financial Inc 123 5,020
Hartford Financial Services Group 154 8,614
Household International Inc 338 14,048
Huntington Bancshares 154 2,435
Jefferson-Pilot Corp 61 3,443
KeyCorp 307 5,411
Lehman Brothers Holdings 92 8,700
Lincoln National Corp 154 5,563
Loews Corporation 61 3,660
Marsh & Mclennan Companies Inc 184 19,217
MBIA Inc 61 2,939
MBNA Corporation 584 15,841
Mellon Financial Corp 369 13,445
Merrill Lynch & Co 277 31,855
MGIC Investment Corp 61 2,776
Morgan (J.P.) & Co 123 13,545
Morgan Stanley, Dean Witter & Co 799 66,517
National City Corporation 430 7,337
Northern Trust Corp 154 10,020
Old Kent Financial Corp 97 2,584
Paine Webber Group Inc 92 4,186
PNC Financial Services Group 215 10,078
Progressive Corp 61 4,514
Providian Financial Corp 92 8,280
Regions Financial Corporation 154 3,061
SAFECO Corp 92 1,829
SLM Holding Corp 123 4,605
SouthTrust Corp 123 2,783
St. Paul Companies 154 5,255
State Street Corp 123 13,046
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCIAL - 7.30% (CONTINUED)
Summit Bancorp 123 $ 3,029
SunTrust Banks Inc 215 9,823
Synovus Financial Corp 215 3,789
T. Rowe Price Associates Inc 92 3,910
Torchmark Corp 92 2,271
U.S. Bancorp 522 10,049
Union Planters Corp 92 2,570
UNUMProvident Corp 184 3,692
Wachovia Corp 154 8,355
Washington Mutual, Inc. 430 12,416
Wells Fargo & Company 1,168 45,255
----------
1,138,583
----------
HEALTH CARE - 6.70%
Abbott Laboratories 1,106 49,286
Aetna Life & Casualty Co 92 5,905
Allergan 92 6,854
ALZA Corp Class A* 61 3,607
American Home Products Corp 953 55,989
Amgen Inc* 738 51,845
Bard C.R. Inc 31 1,492
Bausch & Lomb Inc 31 2,399
Baxter International Inc 215 15,117
Becton Dickinson Co 184 5,279
Biogen Inc* 123 7,934
Biomet, Inc. 92 3,536
Boston Scientific Corp* 307 6,735
Bristol-Meyer Squibb Co 1,414 82,366
Edwards Lifesciences Corp* 43 796
Guidant Corp* 215 10,643
HCA - The Healthcare Company 399 12,120
Healthsouth Corporation* 277 1,991
Humana Inc* 123 600
Johnson & Johnson Co 1,014 103,301
Lilly (Eli) & Co 799 79,800
Mallincrokdt Inc 61 2,650
Manor Care Inc* 61 427
Medimmune Inc* 159 11,766
Medtronic Inc 860 42,839
Merck & Co 1,690 129,496
PE Corp-PE Biosystems Group 123 8,103
Pfizer Inc 4,487 215,370
Pharmacia Corporation 900 46,519
Quintiles Transnational Corp* 92 1,300
Schering Plough Corp 1,045 52,773
St. Jude Medical* 61 2,798
Tenet Healthcare Corp* 215 5,805
Unitedhealth Group Inc 123 10,547
Watson Pharmaceuticals Inc* 61 3,279
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
41
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS BALANCED INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
HEALTH CARE - 6.70% (CONTINUED)
Wellpoint Health Networks* 31 $ 2,246
----------
1,043,513
----------
TECHNOLOGY - 19.66%
3 COM Corporation* 246 14,176
Adaptec Inc* 61 1,388
ADC Telecommunications Inc* 184 15,433
Adobe Systems Inc 92 11,960
Advanced Micro Devices Inc* 92 7,107
Agilent Technologies Inc* 334 24,633
Altera Corp* 163 16,616
America Online Inc* 1,598 84,295
Analog Devices Inc* 246 18,696
Andrew Corp* 61 2,047
Apple Computer Inc* 246 12,884
Applied Materials Inc* 553 50,116
Autodesk Inc 31 1,075
Automatic Data Processing Inc 461 24,692
Bell Atlantic* 1,106 56,199
BMC Software, Inc.* 184 6,713
Cabletron Systems* 123 3,106
Ceridian Corporation* 92 2,214
Cisco Systems Inc* 4,948 314,507
Citrix Systems Inc.* 123 2,329
COMPAQ Computers Corp 1,229 31,416
Computer Associates International Inc 399 20,424
Computer Sciences* 123 9,187
Compuware Corporation* 246 2,552
Comverse Technology* 122 11,346
Conexant Systems Inc* 123 5,981
Corning Corp 200 53,975
Dell Computer Corp* 1,813 89,404
Eastman Kodak 215 12,793
Electronic Data Systems Corp 338 13,943
EMC Corporation Massachusetts* 1,476 113,560
Equifax 92 2,415
First Data 307 15,235
Gateway Inc* 215 12,201
Grainger (W.W.) Inc 61 1,880
GTE Corp 707 44,011
Hewlett-Packard Co 738 92,158
Intel Corp 2,397 320,449
International Business Machines Corp 1,291 141,445
KLA-Tencor Corporation* 123 7,203
Lexmark International Group Inc -
Class A* 92 6,187
Linear Technology Corp 230 14,706
LSI Logic Corp* 184 9,959
Lucent Technologies Inc 2,243 132,898
Maxim Integrated Products* 184 12,501
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 19.66% (CONTINUED)
Mediaone Group* 430 $ 28,515
Mercury Interactive Corp* 54 5,225
Micron Technology Inc* 368 32,407
Microsoft Corp* 3,718 297,440
Motorola Inc 1,554 45,163
National Semiconductor* 123 6,980
NCR Corporation* 77 2,998
Network Appliance Inc* 184 14,812
Nortel Networks Corp 2,072 141,414
Novell Inc* 246 2,276
Novellus Systems Inc* 76 4,299
Oracle Systems* 2,059 173,085
Parametric Technology Co* 184 2,024
Paychex Inc 276 11,592
PeopleSoft Inc* 184 3,082
Perkinelmer Inc 31 2,050
Polaroid Corp 31 560
Qualcomm Inc* 495 29,700
Raytheon Co Class B 246 4,736
Sabre Group Holdings Inc* 66 1,881
Sapient Corporation* 50 5,347
Scientific-Atlanta Inc 123 9,164
Seagate Technology Inc* 154 8,470
Shared Medical System 31 2,261
Siebel Systems Inc* 150 24,534
Sun Microsystems* 1,137 103,388
Tektronix Inc 31 2,294
Tellabs Inc* 277 18,957
Teradyne, Inc* 123 9,041
Texas Instruments Inc 1,168 80,227
Unisys Corp* 215 3,131
U.S. West Inc 369 31,642
Veritas Software Corporation* 300 33,905
Xerox Corp 492 10,209
Xilinx Inc* 215 17,751
Yahoo! Inc* 369 45,710
----------
3,064,285
----------
TRANSPORTATION - .36%
AMR Corp* 92 2,432
Burlington Northern Santa Fe Co 338 7,753
CSX Corp 154 3,263
Delta Air Lines Inc 92 4,652
Fedex Corporation* 215 8,170
Kansas City Southern Industries 92 8,159
Norfolk Southern Co 277 4,120
Ryder System 31 587
Southwest Airlines Co 369 6,988
Union Pacific Corp 184 6,843
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
42
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
BALANCED INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TRANSPORTATION - .36% (CONTINUED)
USAirways Group Inc* 61 $ 2,379
----------
55,346
----------
UTILITIES - 1.42%
AES Corp* 308 14,053
Ameren Corporation 92 3,105
American Electric Power Co 246 7,300
CP&L Energy Inc 123 3,928
CINenrgy Corporation 123 3,129
CMS Energy Corporation 92 2,036
Coastal Corp 154 9,375
Columbia Energy Group 61 4,003
Consolidated Edison Inc 154 4,562
Constellation Energy Group 92 2,996
Dominion Resources 166 7,117
DTE Energy Company 92 2,812
Duke Power 277 15,616
Eastern Enterprises Inc 31 1,953
Edison International 246 5,043
El Paso Energy Corporation 154 7,844
Enron Corp 522 33,669
Entergy Corp 184 5,003
FirstEnergy Corp 154 3,600
Florida Progress Corp 61 2,859
FPL Group Inc 123 6,089
General Public Utilities Corp 92 2,490
New Century Energies Inc 92 2,760
Niagara Mohawk Holdings Inc* 123 1,714
Nicor Inc 31 1,011
Northern States Power Co 123 2,483
Oneok Inc. 31 804
PECO Energy Company 123 4,958
People's Energy Corporation 31 1,004
PG&E Corporation 277 6,821
Pinnacle West 61 2,066
PP&L Corporation 92 2,018
Public Service Enterprises Group Inc 154 5,332
Reliant Energy Inc 215 6,356
Southern Co 492 11,469
TXU Corporation 184 5,428
Unicom Corporation 154 5,958
Williams Companies Inc 307 12,798
----------
221,562
----------
Total Common Stocks
(cost $8,003,971) 9,000,817
----------
U.S. TREASURY OBLIGATIONS - 8.20%
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
------------------
U.S. Treasury Note
(7.250% due 05/15/04) $ 695,000 $ 716,502
U.S. Treasury Note
(6.500% due 05/15/05) 192,000 194,100
U.S. Treasury Bond
(6.250% due 08/15/23) 365,000 367,281
-----------
Total U.S. Treasury Obligations
(cost $1,275,593) 1,277,883
-----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 3.44%
FEDERAL HOME LOAN MORTGAGE CORPORATION
5.750% due 07/15/03 555,000 536,108
-----------
Total U.S. Government Agency
Obligations
(cost $549,094) 536,108
-----------
MORTGAGE-BACKED
SECURITIES - 15.00%
FEDERAL HOME LOAN MORTGAGE CORPORATION
FNCI (6.500% due 07/01/14) 682,901 658,627
FNCL (7.000% due 07/01/29) 1,739,878 1,679,763
-----------
Total Mortgage-Backed Securities
(cost $2,402,312) 2,338,390
-----------
CORPORATE BONDS - 11.83%
AIR TRANSPORTION - .93%
Delta Airlines (7.900% due 12/15/09) 154,000 145,147
-----------
BANK, BANK HOLDING COMPANIES & OTHER
BANK SERVICES - 2.38%
Erac USA Finance (7.950% due 12/15/09) 154,000 149,675
Household Finance Corp. (7.200% due
07/15/06) 230,000 221,730
-----------
371,405
-----------
CAPITAL GOODS - 1.93%
Caterpillar, Inc. (7.250% due
09/15/09) 307,000 301,133
-----------
CONSUMER CYCLICALS - .95%
Ford Motor Credit Corp. (6.700% due
07/16/04) 154,000 148,660
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
43
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS BALANCED INDEX PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
------------------
CONSUMER NON-DURABLE - 1.90%
Great Lakes Chemical Corp. (7.000% due
07/15/09) $ 154,000 $ 145,167
Wal-Mart Stores (6.875% due 08/10/09) 154,000 150,590
-----------
295,757
-----------
MANUFACTURING - 1.81%
Champion International Corp. (7.200%
due 11/01/26) 138,000 128,529
Rohm & Haas Co. (6.950% due 07/15/04) 154,000 152,986
-----------
281,515
-----------
UTILITIES - 1.93%
Sonat, Inc. (7.625% due 07/15/11) 307,000 300,073
-----------
Total Corporate Bonds
(cost $1,899,335) 1,843,690
-----------
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
------------------
UNIT INVESTMENT TRUST - 2.52%
S&P 500 Depositary Receipts $ 2,703 $ 392,695
-----------
Total Unit Investment Trust
(cost $361,926) 392,695
-----------
SHORT-TERM INVESTMENTS - .88%
VARIABLE RATE DEMAND NOTES(1) - .88%
Firstar Bank (5.295% due 12/31/31) 136,794 136,794
-----------
Total Short-Term Investments
(cost $136,794) 136,794
-----------
TOTAL INVESTMENTS - 99.61%
(cost $14,629,026)(2) 15,526,377
-----------
OTHER ASSETS AND LIABILITIES - .39% 61,216
-----------
TOTAL NET ASSETS - 100% $15,587,593
===========
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of June 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 June 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 June 30, 2000 was $1,940,074 and
($1,042,723) respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
44
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
NASDAQ-100 INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
COMMON STOCKS - 98.41%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
BASIC MATERIALS - .27%
Sigma-Aldrich Corp 463 $ 13,543
Smurfit-Stone Container Corp* 1,250 16,094
-----------
29,637
-----------
CAPITAL GOODS - 1.49%
Herman Miller Inc 320 8,280
PACCAR Inc 451 17,899
Maxim Integrated Products Co* 2,000 135,875
-----------
162,054
-----------
CONSUMER CYCLICAL - 6.75%
Adelphia Communications Class-A* 624 29,250
Amazon.Com Inc* 1,164 42,268
Apollo Group Inc* 364 10,192
At Home Corporation - Series A* 1,463 30,357
Bed Bath & Beyond Inc* 970 35,163
CMG Information Services* 1,518 69,543
Comcast Corp-Special Class A* 2,113 85,577
Costco Wholesale Corporation* 1,204 39,732
Dollar Tree Stores Inc* 435 17,210
Ebay Inc* 990 53,769
Panamsat Corp* 1,034 45,173
Staples Inc* 1,622 24,938
Starbucks Corp* 1,312 50,102
USA Networks Inc* 1,754 37,930
Yahoo! Inc* 1,309 162,152
-----------
733,356
-----------
CONSUMER NON-DURABLE - .35%
Cintas Group 1,032 37,862
-----------
HEALTH CARE - 5.95%
Amgen Inc* 2,453 172,323
Biogen Inc* 949 61,211
Biomet Inc 781 30,020
Chiron Corp* 1,306 62,035
Genzyme Corp* 542 32,215
Immunex Inc* 3,515 173,771
Medimmune Inc* 1,122 83,028
Pacificare Health Systems* 168 10,112
Quintiles Transnational Corp* 828 11,696
Visx Inc* 379 10,636
-----------
647,047
-----------
TECHNOLOGY - 76.58%
3COM Corporation* 893 51,459
Adaptec Inc* 440 10,010
ADC Telecommunications Inc* 1,946 163,221
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 76.58% (CONTINUED)
Adobe Systems Inc 600 $ 78,000
Altera Corp* 1,442 146,994
American Power Conversion Corp* 1,301 53,097
Apple Computer Inc* 2,326 121,824
Applied Materials Inc* 2,055 186,234
Applied Micro Circuits Corp* 709 70,014
Atmel Corporation* 850 31,344
BMC Software Inc* 955 34,843
BroadVision Inc* 1,466 74,491
CNET Networks Inc* 494 12,134
Ciena Corp* 854 142,351
Cisco Systems Inc* 12,650 804,066
Citrix Systems Inc.* 1,106 20,945
Compuware Corporation* 1,143 11,859
Comverse Technology Inc* 815 75,795
Concord EFS Inc* 1,192 30,992
Conexant Systems Inc* 1,221 59,371
Dell Computer Corp* 4,852 239,264
EchoStar Communications - A* 1,154 38,208
Electronic Arts* 333 24,288
Ericsson (LM) Telephone Co - Sp ADR 6,100 122,000
Fiserv Inc* 788 34,081
GemStar International Group* 1,114 68,459
Global Crossing Limited* 4,850 127,616
Intel Corp 6,013 803,863
Intuit Inc* 1,321 54,656
I2 Technologies Inc* 1,070 111,564
JDS Uniphase Corp* 3,650 437,544
KLA-Tencor Corporation* 1,144 66,996
Legato Systems Inc.* 476 7,200
Level 3 Communications Inc* 1,302 114,576
Linear Technology Corp 2,137 136,634
Lycos Inc* 689 37,206
Metromedia Fiber Network* 2,656 105,410
Microsoft Corp* 9,200 736,000
Microchip Technology* 327 19,053
Molex Inc 496 23,870
NTL Incorporated* 1,415 84,723
Network Associates Inc* 742 15,118
Network Appliance Inc* 1,637 131,779
Novell Inc* 2,027 18,750
Oracle Systems* 6,025 506,477
PMC - Sierra Inc* 825 146,592
Parametric Technology Corp* 1,920 21,120
Paychex Inc 1,807 75,894
PeopleSoft Inc* 1,951 32,679
Qlogic Corporation* 384 25,368
Qualcomm Inc* 4,550 273,000
RF Micro Devices Inc* 466 40,833
Realnetworks Inc* 742 37,517
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
45
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS NASDAQ-100 INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 76.58% (CONTINUED)
SDL Inc* 400 $ 114,075
Sanmina Corp* 698 59,679
Siebel Systems Inc* 1,173 191,859
Sun Microsystems* 3,530 321,009
Synopsys Inc* 418 14,447
Tellabs Inc* 1,185 81,098
VERITAS Software Corporation* 2,067 233,603
Verisign Inc* 934 164,851
Vitesse Semiconductor* 876 64,441
Xilinx Inc* 2,191 180,894
-----------
8,323,338
-----------
TRANSPORTATION - .10%
Northwest Airlines Corp Class A* 358 10,897
-----------
UTILITIES - 6.92%
Mcleod Inc* 2,382 49,278
Nextel Communications Inc* 4,750 290,641
Nextlink Communications Inc* 938 35,585
Voicestream Wireless Corp* 1,160 134,904
Worldcom Inc* 5,270 241,760
-----------
752,168
-----------
Total Common Stocks
(cost $9,976,398) 10,696,359
-----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
UNIT INVESTMENT TRUST - 3.41%
NASDAQ - 100 Shares 3,976 $ 370,424
-----------
Total Unit Investment Trust
(cost $358,655) 370,424
-----------
SHORT-TERM INVESTMENTS - 1.77%
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
------------------
VARIABLE RATE DEMAND NOTES(1) - 1.77%
Firstar Bank (6.423% due 12/31/31) $192,146 $ 192,146
-----------
Total Short-Term Investments
(cost $192,146) 192,146
-----------
TOTAL INVESTMENTS - 103.59%
(cost $10,527,199)(2) 11,258,929
-----------
OTHER ASSETS AND LIABILITIES - (3.59%) (390,219)
-----------
TOTAL NET ASSETS - 100% $10,868,710
===========
</TABLE>
----------
* Non-income producing
(1) Interest rates vary periodically based on current market rates. Rates shown
are as of June 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 June 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 June 30, 2000 was $1,263,994 and
($532,264) respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
46
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
JUNE 30, 2000 (UNAUDITED)
COMMON STOCKS - 96.74%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
BASIC MATERIALS - 3.75%
Airgas Inc* 855 $ 4,863
AK Steel Holding Corp 1,351 10,808
Albemarle Corp 379 7,485
Amcol International Corp 428 7,062
Arch Chemicals Inc 299 6,541
Battle Mountain Gold Co* 2,091 4,574
Bethlehem Steel Corp* 2,096 7,467
Brush Wellman Inc 259 4,047
Buckeye Technologies Inc* 432 9,477
Bush Boake Allen Inc* 97 4,244
Cabot Microelectronics Co* 62 2,837
Cambrex Corp 394 17,730
Caraustar Industries 409 6,186
Carpenter Technology 293 6,190
Century Aluminum Company 195 2,121
ChemFirst Inc 253 6,104
Chesapeake Corporation 255 7,554
Cleveland-Cliffs Corp 170 4,388
Crompton Corporation 1,812 22,190
Cybex Corporation 263 11,145
Cytec Industries Inc* 656 16,195
Deltic Timber Corp 165 3,527
Ethyl Corp 991 2,478
Ferro Corp 551 11,571
Freeport McMoran Copper - B* 2,120 19,610
Fuller (H. B.) Co 211 9,614
Geon Company 307 5,680
Georgia Gulf Corp 498 10,365
Gibraltar Steel Corp* 120 1,680
Glatfeler (P.H.) Co 410 4,177
Great Lakes Chemical 757 23,846
Hanna (M.A.) Co 778 7,002
International Specialty Products Inc* 230 1,308
Kaiser Aluminum Corp* 464 1,856
Lilly Industries Inc Class A 361 10,853
Louisiana-Pacific Co 1,656 18,009
LTV Corp 1,589 4,568
Lubrizol Corp 853 17,913
Macdermid Inc 229 5,382
McWhorter Technologies Inc* 159 3,091
Millenium Chemicals Inc 1,054 17,918
Minerals Technologies Inc 327 15,042
NL Chemical Inc 337 5,139
National Steel Corp - Class B 321 1,344
Olin Corporation 578 9,537
OM Group Inc 379 16,676
OMNOVA Solutions Inc 545 3,406
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
BASIC MATERIALS - 3.75% (CONTINUED)
Pope & Talbot Inc 231 $ 3,696
Potlatch Corporation 455 15,072
Reliance Steel And Aluminum 315 6,024
Rock-Tenn Company - Class A 195 1,670
Rpm Inc 1,673 16,939
RTI International Metals* 296 3,367
Ryerson Tull Inc 362 3,756
Schulman (A.) Inc. 477 5,754
Schweitzer-Mauduit International Inc 232 2,900
Solutia Inc 1,733 23,829
Southern Peru Copper Corp 401 4,887
Spartech Corp 241 6,507
Steel Dynamics Inc* 677 6,135
Stephan Co 88 2,046
Stillwater Mining Company* 612 17,060
Symyx Technologies* 334 14,232
Uniroyal Tech Corp* 218 2,412
USEC Incorporated 1,366 6,318
Valhi Inc 129 1,338
Valspar Corp 591 19,946
W.R. Grace & Co* 1,038 12,586
Wausau-Mosinee Paper Mills Corp 817 6,996
Weirton Steel Corp* 502 1,632
Wellman Inc 501 8,110
----------
594,012
----------
CONSUMER CYCLICAL - 13.40%
1-800-Flowers.Com Inc* 137 702
4kids Entertainment Inc* 142 3,701
99 Cents Only Stores* 192 7,656
Abercrombie & Fitch* 1,497 18,245
Ackerley Communications Inc 183 2,150
Acme Communications* 159 2,902
ACTV Inc* 511 7,633
Advanced Marketing Services 125 2,305
Advo Inc* 275 11,550
Airtran Holdings Inc* 917 3,811
Alaska Airgroup Inc* 392 10,633
America West Holding Corp* 559 9,573
American Axle & Mfg Holdings* 145 2,057
American Classic Voyages* 158 3,259
American Eagle Outfitters* 354 4,956
Ames Department Stores* 467 3,619
Anchor Gaming* 111 5,321
Ann Taylor Stores Corp* 403 13,349
Apac Customer Service Inc* 372 4,115
Applebees International Inc 379 11,488
Applica Incorporated* 364 4,118
Arctic Cat Inc 288 3,420
Argosy Gaming Co* 324 4,658
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
47
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER CYCLICAL - 13.40% (CONTINUED)
Arvin Industries Inc 407 $ 7,072
Atlantic Coast Airline Holdings* 237 7,525
Avenue A Inc* 79 696
Aztar Corp* 604 9,362
Bally Total Fitness Holdings* 379 9,617
Bandag Inc 182 4,414
Barnes & Noble Inc* 796 17,711
Barnesandnoble.Com Inc* 161 1,052
Beasley Broadcast Group* 132 1,799
Bebe Stores Inc* 40 335
Bob Evans Farms 611 9,127
Boca Resorts Inc - Class A* 440 4,345
Borders Group* 1,243 19,344
Borg Warner Inc 388 13,629
Boyd Gaming Corp* 600 3,338
Boyds Collection Limited* 940 7,990
Brightpoint Inc* 823 7,124
Brown Shoe Company Inc 290 3,770
Buca Inc* 114 1,781
Buffets Inc* 660 8,374
Burlington Coat Factory 276 2,984
Bush Industries - Class A 132 2,112
Buy.Com Inc* 230 1,157
Calico Commerce Inc* 258 4,193
Callaway Golf Company 1,222 19,934
Casey's General Stores 710 7,366
Cash America International 410 3,024
Cato Corp New Class A 221 2,569
CBRL Group Inc 932 13,689
CEC Entertainment Inc* 425 10,891
Centex Corp 944 22,184
Champion Enterprises Inc* 751 3,661
Championship Auto Racing* 180 4,590
Charming Shoppes Inc* 1,498 7,631
Cheap Tickets Inc* 144 1,728
Cheesecake Factory* 419 11,523
Chico's FAS Inc* 211 4,220
Childrens Place* 270 5,535
Choice Hotels International Inc* 848 8,427
Churchill Downs Incorporated 136 3,179
Citadel Communications Corp* 585 20,438
Claire's Stores Inc 644 12,397
Clayton Homes Inc 1,573 12,584
Coachmen Industries Inc 221 2,542
Coldwater Creek Incorporated* 42 1,265
Cole Kenneth Productions* 101 4,040
Collins & Aikman Corp* 983 5,099
Columbia Sportswear Co* 102 2,741
CompX International 68 1,381
Consolidated Products* 378 3,402
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER CYCLICAL - 13.40% (CONTINUED)
Cooper Tire & Rubber Company 1,023 $ 11,381
Copart Inc* 582 9,312
Cost Plus Inc* 325 9,323
Crestline Capital Corp* 236 4,027
Crossman Communities Inc* 117 1,931
Crown Media Holdings* 162 2,481
CSK Auto Corporation* 299 2,261
Cumulus Media Inc - Class A* 559 5,101
D.R. Horton Inc 772 10,470
David's Bridal Incorporated* 228 2,636
Delco Remy International Inc* 339 2,818
Dillard's Inc Class A 1,488 18,228
Direct Focus Inc* 136 6,664
Dovers Downs Entertainment 195 2,730
Dress Barn Inc* 236 5,222
Drugstore.Com Inc* 286 2,154
Duane Reade Inc* 278 7,159
Dura Automotive Systems Inc* 192 2,076
Electronics Boutique Holdings* 87 1,425
Ethan Allen Interiors 628 15,072
Etoys Inc* 912 5,785
Exide Corporation 305 2,440
Expedia Inc Class A* 95 1,407
Extended Stay America* 1,127 10,425
Fairfield Communities Inc* 653 5,142
Fedders Corp 423 2,459
Federal Mogul Corp 1,121 10,720
First Federal Capital Corp* 197 7,449
Fleetwood Enterprises 530 7,553
Footstar Inc* 292 9,709
Freds Inc Class A 139 2,502
Frontier Airlines Inc* 279 3,993
Frontline Capital Group* 385 8,205
Furniture Brands International Inc* 785 11,873
G & K Services Inc - Class A 326 8,170
Gaylord Entertainment Co 280 6,020
GC Companies* 88 1,969
Genesco Inc* 343 5,509
Grey Advertising Inc 10 5,200
Group 1 Automotive Inc* 258 3,096
Gtech Holdings Corp* 553 12,546
Guess? Inc* 113 1,582
Guitar Center Inc* 350 3,675
Ha-Lo Industries Inc* 909 5,113
Handleman Company* 422 5,275
Hanover Direct Inc* 2,362 3,691
Harman International 253 15,433
Haverty Furniture 258 2,193
Hayes Lemmerz International Inc* 284 3,426
Hollinger Intl Inc 607 8,270
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
48
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER CYCLICAL - 13.40% (CONTINUED)
Hollywood Entertainment Corp* 506 $ 3,985
Homegrocer Co* 367 2,213
HON Industries 851 19,999
Hot Topic* 136 4,352
Hotel Reservations Inc* 86 2,559
Houghton Mifflin Co 441 20,589
Hughes Supply Inc 375 7,406
IHOP Corp* 316 5,293
IKON Office Solution 2,374 9,199
IMPCO Technologies Inc* 62 2,627
Information Holdings Inc* 148 5,476
Insight Communications Inc* 624 9,750
Insight Enterprises Inc* 339 20,107
Interface Inc 735 2,802
Intertan Inc* 460 5,405
Isle of Capris Casinos Inc* 404 5,479
Jack In The Box Inc* 607 14,947
Jakks Pacific Inc* 307 4,528
Jason Inc* 190 1,829
Journal Register Co* 721 13,158
Kaufman & Broad Home Corp 765 15,157
Kellwood Co 390 8,239
Kimball International 500 7,375
Krispy Kreme Doughnuts Inc* 47 3,455
Landrys Seafood Restaurants* 394 3,349
Lands' End* 210 7,009
La-Z-Boy Chair Co 830 11,620
Lear Corporation* 1,051 21,020
Lee Enterprises 701 16,342
Lennar Corp 763 15,451
Libbey Inc 242 7,774
Liberty Livewire Corp - Class A* 38 2,670
Linens 'N Things* 631 17,116
Lodgenet Entertainment Corp* 193 4,680
Lone Star Steakhouse* 419 4,242
Longs Drug Stores 493 10,723
Luby's Cafeterias Inc 356 2,848
Marcus Corporation 353 4,280
Martha Stewart Living* 149 3,278
McClatchy Newspapers 296 9,805
M.D.C. Holdings Inc 341 6,351
Media General Inc Class A 328 15,929
Mediacom Communications Corp* 317 4,874
Mens Wearhouse Inc* 506 11,290
Meredith Corporation 594 20,048
Meritor Automotive Inc* 990 10,890
Mesa Air Group Inc* 538 2,976
Mesaba Holdings Inc* 195 1,865
Metromedia International Group Inc* 1,121 5,325
Michaels Stores Inc* 446 20,432
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER CYCLICAL - 13.40% (CONTINUED)
Midwest Express Holdings* 222 $ 4,773
Mobile Mini Inc* 146 3,221
Modem Media Poppe Tyson Inc* 164 2,040
Modine Manufacturing Co 354 9,558
Mohawk Industries* 664 14,442
Monoco Coach Corp* 248 3,379
Morrison Management Specialists 186 5,243
MP3.Com Inc* 324 4,394
Musicland Stores Inc* 432 3,213
National Presto Industries 72 2,214
Nautica Enterprises Inc* 495 5,290
Neiman-Marcus Group Inc* 596 17,619
Neoforma.Com Inc* 120 844
Network Commerce Inc* 444 2,442
NPC International Inc* 154 1,381
NN Skin Enterprises Inc* 719 4,134
NVR Inc* 146 8,322
O'Charleys Inc* 220 2,998
OfficeMax Inc* 1,792 8,960
On Command Corporation* 134 1,910
Oneida Limited 219 3,887
Onvia.Com* 125 1,078
O'Reilly Automotive Inc* 567 7,867
OshKosh B'Gosh Class A 176 2,882
Oshkosh Truck Corp 230 8,223
Owens & Minor Holding Co 522 8,972
P.F. Changs China Bistro Inc* 101 3,226
Pacific Sunwear of California* 503 9,431
Palm Harbor Homes Inc* 291 4,220
Papa John's International Inc* 309 7,571
Parkervision Inc* 115 5,800
Paxson Communications Corp* 524 4,192
Payless Shoesource* 353 18,091
PC Connection Inc* 75 4,275
Pegasus Soulutions Inc* 321 3,491
Penn National Gaming Inc* 126 1,717
Penton Media Inc 337 11,795
Pep Boys-Manny Moe & Jack 744 4,464
Petco Animal Supplies Inc* 335 6,574
PETsMart Inc* 1,780 6,008
Phillips-Van Heusen Corp 333 3,164
Pier 1 Imports Inc 1,570 15,308
Pinnacle Entertainment Inc* 302 5,870
Playboy Enterprises Inc* 324 4,172
Polaris Industries Inc 380 12,160
Polo Ralph Lauren Corp* 867 12,355
Pricemart Inc* 27 1,026
Prime Hospitality Corp* 713 6,729
Private Media Group Inc* 208 1,911
Pulitzer Inc 136 5,738
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
49
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER CYCLICAL - 13.40% (CONTINUED)
Pulte Corp 487 $ 10,531
Purchasepro Co* 165 6,765
Quicksilver Inc* 356 5,540
R.H. Donnelley Corp* 510 9,881
Rare Hospitality International Inc* 166 4,690
Reebok International Limited* 708 11,284
Regent Communication Inc* 253 2,174
Regis Corp 546 6,825
Ruby Tuesday Inc 978 12,286
Russell Co 432 8,640
Ryan's Family Steak House Inc* 568 4,793
Ryland Group Inc 207 4,580
Saga Communications Inc* 101 2,222
Salem Communications* 372 3,453
Salton Inc* 152 5,605
Scholastic Corp* 225 13,753
School Specialty Inc* 277 5,142
Scientific Games Holdings Corp* 149 3,660
SciQuest Company Inc* 284 3,248
SCP Pool Corp* 233 5,476
Shopko Stores Inc* 470 7,226
Sinclair Broadcast Group-A* 723 7,953
Sirius Satellite Radio Inc* 502 22,245
Sitel Corp* 727 3,590
Skechers Usa Inc* 223 3,526
Skyline Corp 104 2,236
Skywest Inc 342 12,675
Smart & Financial Inc* 188 1,445
Sonic Automotive Inc* 325 3,473
Sonic Corp* 284 8,343
Spanish Broadcasting Systems* 488 10,035
Speedway Motorsports Inc* 223 5,129
Spiegel Inc 239 2,032
Spring Industries 205 6,560
Stamps.Com Inc* 470 3,437
Standard Pacific Corp 377 3,770
Station Casinos Inc* 364 9,100
Stein Mart Inc* 427 4,377
Steven Madden Ltd* 153 1,004
Stride Rite Corp 687 4,208
Sunbeam Corp* 1,224 4,208
Sunglass Hut International* 614 5,046
Superior Industries 299 7,699
Systemax Inc* 157 608
Tenneco Automotive Inc 540 2,835
The Buckle Inc* 127 1,492
The Topps Co* 692 7,958
Thor Industries Inc 110 2,310
Ticketmaster Online* 314 5,004
Timberland Company* 140 9,914
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER CYCLICAL - 13.40% (CONTINUED)
TiVo Inc* 239 $ 8,365
Toll Brothers Inc* 327 6,704
Too Inc 488 12,414
Toro Company 179 5,896
Tower Automotive Inc* 640 8,000
Trans World Entertainment* 486 5,893
Travelocity Company Inc* 236 3,865
Trendwest Resorts Inc* 59 951
Tuesday Morning Corp* 160 1,680
Tweeter Home Entertainment Group* 250 7,594
Ultimate Electronics Inc* 133 3,564
Unifi Inc* 904 11,187
United Auto Group Inc* 91 830
United Stationers Inc* 516 16,706
United Television Inc 63 8,111
Vail Resorts Inc* 241 3,931
Value City Dept Stores Inc* 245 2,328
Value Line Inc 30 1,155
Valuevision International Inc* 612 14,688
Vans Inc* 197 2,881
Venator Group Inc* 2,189 22,437
Ventiv Health Inc* 247 2,748
Ventro Corporation* 347 6,550
Wabash Natl Corp 346 4,130
Warnaco Group Class A 846 6,557
Watsco Inc 325 4,063
Webb (Del E.) Corp* 260 3,981
Wesco International Inc* 312 2,984
Westpoint Stevens Inc 529 5,885
Whitehall Jewelers Inc* 216 4,023
Wiley (John) & Sons Class A 737 16,583
Wilsons (The) Leather Experts* 157 2,306
Wink Communication Inc* 343 10,462
Winnebago Industries 219 2,861
WMS Industries Inc* 360 5,558
Wolverine World Wide 661 6,527
World Wrestling Federation
Entertainment Inc* 183 3,809
Worldpages.Com Inc* 570 3,420
Wyndham International Class A* 2,392 5,980
Wynn's International Inc 224 5,082
XM Satellite Radio Holdings* 192 7,188
Young Broadcasting Corp* 154 3,956
Zale Corp* 560 20,425
Ziff-Davis Inc* 502 4,518
Zomax Inc* 448 5,880
----------
2,120,745
----------
CONSUMER NON-DURABLE - 15.25%
Aaron Rents Inc 277 3,480
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
50
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 15.25%
(CONTINUED)
Abiomed Inc* 116 $ 3,567
ABM Industries Inc 259 5,957
Accredo Health Inc* 153 5,288
ACNielson Corporation* 852 18,744
Acuson Corp* 330 4,455
Adac Laboratories* 326 7,824
Administaff Inc* 144 9,144
Advance Paradigm Inc* 299 6,130
Agribrands International* 160 6,710
Albany Molecular Research* 133 7,240
Alberto-Culver Co Class B 571 17,451
Algos Pharmaceuticals Corp* 190 2,898
Alliance Pharmaceutical* 748 8,415
Allos Therapeutics Inc* 79 770
Alpharma Inc Class A 341 21,227
American Greetings Co 1,025 19,475
American Italian Pasta* 291 6,020
AmeriPath Inc* 343 3,044
AmeriSource Health Corp* 814 25,234
Amylin Pharmaceuticals Inc* 888 13,487
Anesta Corp* 193 4,801
Antigenics Inc* 59 981
Appria Healthcare Group* 627 7,681
Aradigm Corp* 276 4,830
Arch Capital Group Limited* 196 2,928
Arrow International Inc 181 6,064
Arthrocare Corporation* 155 8,254
Aspect Medical Systems Inc* 54 1,458
ATS Medical Inc* 302 4,417
Aurora Biosciences Corp* 312 21,275
Aurora Foods Inc* 278 1,112
Avis Group Holdings Inc* 349 6,544
Bacou USA Inc* 75 1,500
Banta Corporation 400 7,575
Barr Laboratories Inc* 428 19,180
Ben & Jerry's Homemade - Class A* 82 3,567
Bergen Brunswig Corp Class A 2,138 11,759
Beringer Wine Estates - B* 125 4,414
Beverly Enterprises Inc* 1,611 4,531
Billing Concepts Corporation* 673 2,986
Bindley Western Industries 399 10,549
Biomarin Pharmaceutical Inc* 266 4,522
Biomatrix Inc* 234 5,294
Biopure Corporation* 213 4,007
Biosite Diagnostics Inc* 217 10,457
Block Drug Company - Class A 152 6,432
Blyth Inc* 545 16,078
Bone Care International Inc* 109 2,568
Bowne & Co Inc 560 5,635
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 15.25%
(CONTINUED)
Bright Horizons Family Solutions* 195 $ 4,168
Burns International Services* 178 2,225
Cadiz Inc* 561 4,488
Canandaigua Brands Inc Class A* 237 11,954
Cardiodynamics International Corp* 446 2,801
Career Education Corp* 146 7,081
Caremark Rx Inc* 3,175 21,630
Carter-Wallace Inc 319 6,420
CDI Corp* 175 3,566
Cell Pathways Inc* 337 7,920
Cell Therapeutics Inc* 385 11,791
Celsion Corporation* 773 2,222
Central Garden & Pet Co* 232 2,081
Central Parking Corp 194 4,595
Century Business Services* 1,179 2,284
Cerus Corp* 142 7,269
Chemed Corporation 144 4,059
Chiquita Brands International 591 2,327
Chirex Inc* 224 4,480
Chromavision Medical Systems* 225 2,967
Church & Dwight Co Inc 606 10,908
Closure Medical Corp* 100 2,300
Coca-Cola Bottling Co Consolidated 25 1,138
Coinstar Inc* 321 3,230
Columbia Laboratories Inc* 365 2,099
Conmed Corp* 228 5,900
Connetics Corporation* 433 6,360
Cooper Companies Inc 224 8,148
Corinthian Colleges Inc* 69 1,617
Corixa Corp* 301 12,924
Corn Products International Inc 559 14,814
Corporate Executive Board Co* 151 9,041
Corvel Corp* 96 2,370
Costar Group Inc* 191 4,787
Coulter Pharmaceutical Inc* 271 5,556
Covance Inc* 909 8,011
Coventry Health Care Inc* 931 12,408
CPI Corporation 111 2,345
CSS Industries Inc* 92 1,880
Cubist Pharmaceuticals Inc* 423 20,833
CV Therapeutics Inc* 243 16,843
Cyberonics* 250 3,000
Cygnus Inc* 364 5,187
Data Broadcasting Corp* 1,097 6,925
Datascope Corp 193 6,948
Dean Foods Co 571 18,094
Del Monte Foods Co* 830 5,654
Delta & Pine Land Company 610 15,288
Diagnostic Products Corp 178 5,696
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
51
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 15.25%
(CONTINUED)
Dial Corp 1,358 $ 14,089
Diametrics Medical Inc* 387 2,189
Diamond Technology Partners Inc* 318 27,984
Dole Food Company 726 10,164
Dollar Thrifty Automotive Group* 384 7,080
Dreyer Grand Ice Cream Inc 255 5,355
Dura Pharmaceuticals Inc* 705 10,134
Dusa Pharmaceuticals Inc* 215 6,343
Earthgrains Company 674 13,101
Ebenx Inc* 80 1,695
Edison Schools Incorporated* 225 5,217
Education Management Corp* 323 5,834
Edwards Lifesciences Corp* 926 17,131
Electro Rent Corp* 230 2,818
Emisphere Technologies Inc* 226 9,630
Encompass Services Corp* 1,001 5,756
Endocare Inc* 158 3,200
Farmer Brothers Co 13 2,275
First Consulting Group Inc* 275 1,530
Fleming Companies Inc 624 8,151
Forrester Research Inc* 173 12,597
Fossil Inc* 225 4,373
Foundation Health Systems - A* 1,644 21,372
FYI Inc* 196 6,603
Gaiam Inc* 41 759
Gartner Group Inc Class A* 1,172 14,064
Geltex Pharmaceuticals Inc* 248 5,069
Genta Inc* 184 1,196
Great Atlantic & Pacific Tea Co 275 4,572
Guilford Pharmaceuticals Inc* 372 5,603
Haemonetics Corp* 411 8,631
Hain Celestial Group Inc* 462 16,950
Hall Kinion & Associates* 142 4,730
Harl (John H.) Co 449 6,707
Heidrick & Struggles International* 304 19,190
Henry Schein Inc* 361 6,227
Herbalife International 205 1,794
Hooper Holmes Inc 1,045 8,360
Horizon Offshore Inc* 141 2,186
Hotjobs.Com Limited* 253 3,495
Humana Inc* 2,520 12,285
Hyseq Inc* 155 7,043
Idexx Laboratories Inc* 563 12,879
Igen International Inc* 152 2,518
Ilex Oncology Inc* 346 12,197
Imatron Inc* 1,443 3,382
Immune Response Corp* 375 4,078
Immunogen Inc* 525 6,333
Impath Inc* 139 7,541
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 15.25%
(CONTINUED)
Inamed Corp* 204 $ 7,472
Ingles Markets Inc 157 1,639
Insurance Auto Auctions Inc* 134 2,831
Integrated Electrical Services* 518 2,655
Interim Services Inc* 929 16,490
International Home Foods Inc* 646 13,526
International Multifoods Inc 269 4,657
Interstate Bakeries Corp 596 8,344
Intrabiotics Pharmaceuticals* 119 3,176
Invacare Corp 378 9,923
Isis Pharmaceuticals Corp* 564 8,178
I-Stat Corp* 256 4,464
ITT Educational Services Inc* 225 3,952
Jupiter Communications* 98 2,254
K V Pharmaceutical Co - Class B* 188 5,111
Kelly Services Inc Class A 270 6,244
Kforce.Com Inc* 614 4,260
Korn/Ferry International* 585 18,537
Kos Pharmaceuticals Inc* 146 2,345
Labor Ready Inc* 546 3,617
Laboratory Corp of America Holdings* 104 8,021
Lance Inc 400 3,600
Learning Tree International* 171 10,474
Lifepoint Hospitals Inc* 497 11,058
Ligand Pharmaceuticals* 827 10,906
Lincare Holdings Inc* 649 15,982
Luminex Corp* 73 3,039
Mail-Well Inc* 739 6,374
Management Network Group Inc* 85 2,975
Manor Care Inc* 1,278 8,946
Matrix Pharmaceutical Inc* 366 4,781
Maximus Inc* 180 3,983
McGrath Rentcorp 142 2,414
Medical Manager Corporation* 603 20,540
Medicis Pharmaceutical Class A* 459 26,163
Medquist Inc* 225 7,650
Memberworks Inc* 154 5,178
Mentor Corp 348 9,461
Meta Group Inc* 130 2,503
MGI Pharma Inc* 260 7,479
Michael Foods Inc 217 5,317
Microvision Inc* 169 8,281
Midas Inc 248 4,960
Mid-Atlantic Medical Services* 704 9,504
Miravant Medical Technologie* 221 4,931
Modis Professional Services* 1,446 11,026
Nabi* 534 3,905
National Processing Inc* 96 1,200
Nationsrent Inc* 586 2,234
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
52
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 15.25%
(CONTINUED)
Navigant Consulting Co* 591 $ 2,512
NBTY Inc* 890 5,674
NCO Group Inc* 305 7,053
Neorx Corp* 312 5,889
Neurocrine Biosciences* 320 11,380
Neurogen Corp* 197 5,688
New England Business Service 198 3,218
Noven Pharmaceuticals* 300 9,019
Novoste Corporation* 225 13,725
NPS Pharmaceuticals Inc* 307 8,212
Oakley Inc* 357 4,106
Ocular Scineces Inc* 253 2,973
Ogden Corp* 787 7,083
Omnicare Inc 1,465 13,277
On Assignment Inc* 344 10,492
Oratec Interventions* 69 2,303
Organic Inc* 97 946
Orthodontic Centers of America* 647 14,638
OSI Pharmaceuticals Inc* 371 10,689
Parexel International Corp* 401 3,835
Pathogenesis* 262 6,812
Pennzoil-Quaker State Co 1,246 15,030
Pepsiamericas Inc* 395 1,185
Performance Food Group Co* 195 6,240
Perrigo Co* 981 6,193
Pharmaceutical Product Development* 293 6,153
Pharmacopeia Inc* 289 13,402
Pharmacyclics Inc* 253 15,433
Photogen Technologies Inc* 144 1,197
Pilgrims Pride Corp 257 1,831
Playtex Products Inc* 455 5,147
Plexus Corp* 280 31,640
Polymedia Corp* 163 7,050
Praecis Pharmaceuticals Inc* 127 3,540
Prepaid Legal Services Inc* 304 9,082
Primark Corp* 322 11,995
Priority Healthcare Corp* 178 13,228
Professional Detailing Inc* 65 2,214
Prosoft Training Company* 262 4,405
Protection One Inc* 313 685
Province Healthcare Co* 320 11,560
PSS World Medical Inc* 1,129 7,586
Quorum Health Group Inc* 1,123 11,581
Ralcorp Holdings Inc* 445 5,451
Rehabacare Group Inc* 200 5,450
Renal Care Group Inc* 718 17,557
Rent-A-Center Inc* 267 6,008
Rent-Way Incorporated* 376 10,975
Res-Care Inc* 308 1,656
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 15.25%
(CONTINUED)
Resmed Inc* 473 $ 12,653
Respironics* 524 9,432
Revlon Inc* 139 877
Rexall Sundown Inc* 535 12,840
Rica Foods Inc* 113 2,599
Rightchoice Managed Care* 59 929
Riviana Foods Inc 111 1,936
Robert Mondavi Corp Class A* 127 3,897
Rollins Inc 270 4,016
Ruddick Corp 478 5,646
Russ Berrie & Co Inc 162 3,119
Sangstat Medical Corp* 251 7,248
Schein Pharmaceuticals Inc* 75 1,622
Sciclone Pharmaceuticals Inc* 482 6,236
Scotts Company Class A* 245 8,943
Seaboard Corp 5 860
Seminis Inc* 196 515
Service Corp International 4,326 13,789
Sicor Inc* 654 5,232
Smithfield Foods Inc* 872 24,471
Smucker (J.M.) Co Class A 399 7,681
Sodexho - Marriott Services 517 8,272
Sonic Innovations* 54 1,002
Sotheby's 658 11,515
Source Information Mgmt Co* 162 2,471
Staar Surgical Co* 187 2,092
Standard Register Co 205 2,921
Star Scientific Inc* 312 1,053
Startek Inc* 113 5,692
Steris Corp* 1,073 9,523
Stewart Enterprises Inc Class A 1,513 5,343
Strayer Education Inc 115 2,760
Suiza Foods Corp* 461 22,531
Summit Technology Inc* 747 14,100
Sunrise Assisted Living Inc* 298 5,513
Sunrise Technologies* 738 7,380
Supergen Inc* 405 14,681
Sylvan Learning Systems Inc* 494 6,793
Syncor International Corp* 150 10,800
Tejon Ranch Co* 101 2,279
The Profit Recovery Group Inc* 657 10,923
Thermo Cardiosystems Inc* 245 2,450
Thermotrex Corp* 70 774
Thoratec Labs Corp* 237 3,836
Threagenics Corp* 416 3,562
Titan Pharmaceuticals Inc* 365 15,695
Total Renal Care Holdings* 1,164 6,984
Triad Hospitals Inc* 540 13,061
Triangle Pharmaceuticals Inc* 520 4,713
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
53
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
CONSUMER NON-DURABLE - 15.25%
(CONTINUED)
Trico Marine Services* 356 $ 4,539
Trimeris Inc* 248 17,345
Tularik Inc* 174 5,133
Tupperware Corporation 917 20,174
Twinlab Corporation* 339 2,161
United Natural Foods Inc* 139 1,911
United Rentals Incorporated* 534 9,145
United Therapeutics Corp* 212 22,976
Universal Corporation 448 9,464
Universal Foods Corp 728 13,468
Us Oncology Inc* 1,144 5,720
Valentis Inc* 461 5,417
Varian Medical Systems Inc* 496 19,406
Vasomedical Inc* 789 3,723
Vaxgen Inc* 126 2,756
Vector Group Limited 193 2,847
Ventana Medical Systems* 145 3,408
Veterinary Centers of America* 298 4,098
Visx Inc* 859 24,079
Vital Signs Inc 88 1,595
Vivus Inc* 512 3,552
Volt Info Sciences Inc* 129 4,249
Wackenhut Corporation Class* 144 1,863
Wallace Computer Services 596 5,886
Wesley Jessen Visioncare* 144 5,409
West Pharmaceutical Services 165 3,568
Whole Foods Market Inc* 417 17,227
Wild Oats Markets Inc* 305 3,832
Xceed Inc* 231 2,108
Yankee Candle Co* 231 4,995
Zoll Medical Corp* 132 6,468
----------
2,414,341
----------
DIVERSIFIED - .13%
Terremark Worldwide Inc* 1,973 9,742
Triarc Companies* 220 4,510
Walter Industries Inc 526 6,016
----------
20,268
----------
ENERGY - 3.00%
Arch Coal Inc 265 2,037
Atwood Oceanics Inc* 140 6,213
Barrett Resources Corp* 456 13,880
Basin Exploration Inc* 217 3,879
Belco Oil & Gas Corp* 243 2,066
Berry Petroleum 300 5,100
Cabot Oil & Gas Corp 364 7,712
Cal Dive International Inc* 190 10,296
Callon Petroleum Company* 95 1,413
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
ENERGY - 3.00% (CONTINUED)
Carbo Ceramics Inc 78 $ 2,740
Chesapeake Energy Corp* 1,490 11,548
Clayton Williams Energy Inc* 69 2,204
Comstock Resources Inc* 308 2,464
Consol Energy Inc 402 6,080
Cross Timbers Oil Company 732 16,196
Denbury Resources Inc* 257 1,333
Dril-Quip Inc* 147 6,872
EEX Corporation* 460 2,674
Evergreen Resources Inc* 201 5,955
Forcenergy Inc* 208 4,186
Forest Oil Corp* 519 8,272
Friede Goldman Halter Inc* 441 3,941
Frontier Oil Corp* 437 3,496
Grey Wolf Inc* 2,839 14,195
Gulf Island Fabrication Inc* 123 2,091
Houston Exploration Co* 137 3,442
HS Resources Inc* 268 8,040
Input/Output Inc* 612 5,164
Key Energy Group Inc* 1,363 13,119
Key Production Company Inc* 152 2,660
Lone Star Technologies* 378 17,483
Louis Dreyfus Natural Gas* 312 9,770
Mcmoran Exploration* 251 4,142
Meridian Resource Corp* 244 1,388
Midcoast Energy Resources 175 2,756
Mitchell Energy & Dev - Class A 324 10,409
National-Oilwell Inc* 92 3,025
Newpark Resources Inc* 1,099 10,372
Nuevo Energy Co* 243 4,587
Oceaneering International* 332 6,308
Parker Drilling Co* 1,041 6,441
Patina Oil & Gas 177 3,673
Patterson Energy Inc* 521 14,849
Penn Virginia Corp 110 2,709
Pennaco Energy Inc* 245 4,012
Pioneer Natural Resources* 1,584 20,196
Plains Resources Inc* 255 4,080
Pogo Producing Co 641 14,182
Prima Energy Corp* 93 4,976
Prize Energy Corp* 44 1,056
Pure Resources Inc* 795 14,211
RPC Incorporated 210 2,218
Seacor Smit Inc* 268 10,368
Seitel Inc* 290 2,356
Spinnaker Exploration Co* 118 3,024
St. Mary Land & Exploration 222 9,338
Stone Energy Corporation* 263 15,714
Superior Energy Services Inc* 704 7,304
Swift Energy Co* 304 8,626
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
54
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
ENERGY - 3.00% (CONTINUED)
Tesoro Petroleum Corporation* 504 $ 5,103
Tom Brown Inc* 437 10,078
Transmontaigne Oil Co* 417 2,554
Unit Corp* 507 6,845
Universal Compression Holdings* 111 3,719
UTI Energy Corp* 223 8,948
Veritas Dgc Inc* 410 10,660
Vintage Petroleum Inc 774 17,455
W D-40 Co 208 4,316
Western Gas Resources Inc 315 6,615
----------
475,134
----------
FINANCIAL - 16.17%
1st Source Corp 175 2,745
Acacia Research Corp* 228 5,472
Advanta Corporation Class A 346 4,217
Affiliated Managers Group* 356 16,198
Alabama National Bancorp 133 2,635
Alexander's Inc* 53 3,882
Alexandria Real Est Equities 192 6,588
Alfa Corp 623 10,903
Alleghany Corporation* 77 12,936
Allied Capital Corp 1,101 18,717
Amcore Financial Inc 430 7,874
American Capital Strategies 329 7,855
American Financial Holdings 459 7,287
American Industrial Properties Reit 282 3,825
American National Insurance 162 8,262
AmeriCredit Corporation* 1,204 20,468
Amerus Life Holdings Inc 200 4,125
AMLI Residential Properties 231 5,443
Anchor Bancorp Wisconsin Inc 401 6,140
Andover Bancorp 101 2,910
Arden Realty Group Inc 945 22,208
Area Bancshares Corp 150 3,347
Argonaut Group Incorported 278 4,761
Astoria Financial Corp 733 18,875
Baldwin & Lyons Inc - Class B 186 3,174
BancFirst Corp 64 2,016
Bancorpsouth Inc 895 12,586
Bank of Granite Corp 182 4,163
Bank United Corp - Class A 515 18,122
BankAtlantic Bancorp Inc 410 2,409
Bay View Capital Corp 448 4,396
Bedford Property Investors 296 5,495
Berkley (W R) Corp 277 5,194
Blackrock Inc* 286 8,294
Blanch (E W) Holdings Inc 212 4,306
Bok Financial Corp* 167 2,933
Boykin Lodging Co 272 3,672
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCIAL - 16.17% (CONTINUED)
Bradley Real Estate Inc 352 $ 7,502
Brandywine Realty Trust 540 10,328
Bre Properties Class A 712 20,559
Brenton Banks Inc 226 3,136
Brookline Bancorp Inc 206 2,356
Brown & Brown Inc 171 8,892
BSB Bancorp Inc 147 2,949
BT Financial Corp 265 4,571
Burnham Pacific Properties I 513 3,527
Cabot Industrial Trust 645 12,698
Camden Property Trust 607 17,831
Capital Automotive Reit 329 4,647
Capital City Bank Group Inc 65 1,268
Capitol Federal Financial 560 6,195
Capstead Mortgage Corp 278 2,328
Castle & Cooke Inc* 209 4,036
Catellus Development Corp* 1,699 25,485
Cathay Bancorp Inc 143 6,632
CB Richard Ellis Services* 324 2,957
CBL & Associates Properties 394 9,825
Centerpoint Properties Trust 330 13,448
Century South Banks Inc 177 3,429
Charter Mutual Mortgage Acceptance 327 4,026
Chateau Properties Inc 341 9,633
Chelsea Gca Realty Inc 253 8,744
Chemical Financial Corp 223 5,798
Chittenden Corp 452 11,046
Citizens Banking Corp 757 12,289
City Bank Lynnwood 148 3,867
CAN Surety Corporation 262 3,128
Colonial Bancgroup Inc 1,530 13,770
Colonial Properties Trust 348 9,527
Commerce Bancorp Inc 486 22,356
Commerce Group Inc 399 11,771
Commercial Federal Corp 897 13,960
Commercial Net Lease Realty 482 5,061
Community First Bankshares 801 13,066
Compucredit Corp* 194 5,820
Cornerstone Realty Income Trust 621 6,210
Corus Bankshares Inc 147 3,886
Cousins Properties Inc 415 15,978
CPB Inc 130 3,250
Crawford & Co 561 6,171
Credit Acceptance Corporation* 269 1,496
Creditrust Corporation* 77 101
Cullen/Frost Bankers Inc 832 21,892
CVB Financial Corp 275 4,348
Dain Rauscher Corp 203 13,398
Delphi Financial Group Inc* 236 8,009
Developers Diversified 927 13,847
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
55
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCIAL - 16.17% (CONTINUED)
Dime Community Bancshares 200 $ 3,250
DLJ Direct* 254 1,810
Doral Financial Corp 502 5,742
Downey Financial Corp 337 9,773
DVI Incorporated* 154 2,464
East West Bancorp Inc 357 5,132
Eastgroup Properties 248 5,224
Eaton Vance Corp 472 21,830
E-Loan Inc* 150 713
Enhance Financial Services Group 431 6,196
Enterntainment Properties Trust 239 3,301
Equity Inns Inc 583 3,571
Essex Property Trust Inc 287 12,054
F & M Bancorp 168 3,318
F & M National Corp 395 8,295
Farmers Capital Bank Corp 100 3,038
FBL Financial Group Inc Class A 188 2,961
Federal Realty Investment Trust 625 12,500
Felcor Lodging Trust Inc 750 13,875
Fidelity National Financial Inc 846 15,492
Financial Federal Corp* 171 2,971
Finova Group Inc 974 12,662
First American Corporation 872 12,481
First Bankcorp 338 6,274
First Busey Corp 144 2,367
First Charter Corp 498 7,844
First Citizens Bancshares 94 5,593
First Commonwealth Financial Corp 923 8,365
First Federal Capital Corp 236 2,611
First Federal Financial Group* 273 3,856
First Financial Bancorp 561 11,045
First Financial Corp 107 3,264
First Financial Bankshares Inc 158 4,345
First Financial Holdings Inc 212 2,915
First Indiana Corp 148 2,942
First Industrial Realty Trust 615 18,143
First Merchants Corp 185 3,920
First Midwest Bancorp Inc 654 15,206
First Niagara Financial Group 195 1,828
First Sentinel Bancorp Inc 573 4,709
First United Bancshares 402 6,105
First Washington Realty Trust 128 2,824
FNB Corp 348 7,178
Forest City Enterprises - Class A 251 8,377
Franchise Finance Corp Of America 895 20,585
Fremont General Corp 924 3,638
Friedman Billings Ramsey Group* 378 3,071
Frontier Financial Corp 233 4,281
Fulton Financial Corp 1,134 20,058
Gabelli Asset Mgmt Inc* 87 2,175
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCIAL - 16.17% (CONTINUED)
Gables Residential Trust 385 $ 9,914
Gallagher Arthur J & Co 591 24,822
GBC Bancorp 170 4,973
Glacier Bancorp Inc 1 13
Glenborough Realty Trust Inc 466 8,126
Glimcher Realty Trust 378 5,434
Gold Banc Corporation Inc 469 2,345
Great American Financial Res 114 2,016
Great Lakes Reit Inc 260 4,420
Greater Bay Bancorp Inc 283 13,230
Hancock Holding Co 145 4,930
Harbor Florida Bancshares 363 3,789
Harleysville Group Inc 209 3,501
Harleysville National Corp 125 4,094
Harris Financial Inc 129 798
HCC Insurance Holdings Inc 652 12,307
Health Care Properties Invest Inc 769 20,955
Health Care Reit Inc 454 7,378
Healthcare Realty Trust 638 10,886
Highwoods Properties Inc 946 22,704
Hilb, Rogal & Hamilton Co 208 7,215
Home Properties of New York Inc 319 9,570
Horace Mann Educators 650 9,750
Hospitality Properties Trust 804 18,140
HRPT Properties Trust 2,097 12,844
HSB Group Inc 461 14,349
Hudson United Bancorp 806 18,085
Imperial Bancorp* 592 9,213
Independence Community Bank 1,064 14,098
Indymac Mortgage Holdings 1,077 14,607
Innkeepers USA Trust 551 5,028
Insignia Financial Group* 286 2,860
Interga Bank Corporation 277 4,709
International Bancshares 248 8,091
Interwest Bancorp Inc 219 3,066
Investment Technology Group* 437 17,262
Investors Financial Svs 463 18,375
IRT Property Co 506 4,301
Irwin Financial Corp 168 2,426
JDN Realty Corp 538 5,481
Jefferies Group Inc 388 7,833
John Nuveen Co Class A 106 4,445
Jones Lang Lasalle Inc* 481 6,433
JP Realty Inc 195 3,473
Kansas City Life Insurance Co 109 2,929
Keystone Financial Inc 776 16,490
Kilroy Realty Corp 416 10,790
Koger Equity Inc 422 7,121
Labranche & Company* 587 8,438
Landamerica Financial Group 156 3,578
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
56
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCIAL - 16.17% (CONTINUED)
Lasalle Hotel Properties 170 $ 2,444
Leucadia National Corp 602 13,733
Lexington Corpprate Properties Trust 272 3,043
Liberty Corporation 248 10,416
Liberty Financial Companies 217 4,760
LNR Property Corp 354 6,903
Macerich Co 499 11,009
MAF Bancorp Inc 376 6,839
Manufactured Home Communities 292 6,990
Markel Corp* 91 12,888
Medallion Financial Corp 178 2,748
Medical Assurance Inc* 297 3,341
Meditrust Corp 2,266 8,498
Merchants New York Bancorp 301 5,173
Mercury General Corp 425 10,041
Meristar Hospitality Corp 562 11,802
Metris Companies Inc 924 23,216
Mid-America Apartment Comm 280 6,720
Midamerica Bancorp 134 3,350
Midland Co 69 1,691
Mid-State Bancshares 178 4,851
Mills Corp 246 4,628
Mississippi Valley Bancshares 99 2,401
Morgan Keegan Inc 350 5,163
N B T Bancorp Inc 287 3,067
National Discount Brokers* 172 5,483
National Golf Properties Inc 213 4,500
Nationwide Health Properties Inc 735 10,244
National Bancorp of Alaska Inc 235 8,431
National Health Investors Inc 387 4,257
National Penn Bancshares Inc 280 5,775
National Western Life Ins Class A* 31 2,232
Net Bank Inc* 386 4,801
New Plan Excel Realty Trust 1,393 18,109
Nextcard Inc* 445 3,783
Northeast Bancorp Inc 229 1,574
Oceanfirst Financial Corp 190 3,503
Ocwen Financial Corp* 518 2,881
Ohio Casualty Corp 955 10,147
Omega Financial Corp 140 3,535
One Valley Bancorp Inc 535 16,719
Oriental Financial Group 181 2,613
Pacific Capital Bancorp 390 9,774
Pacific Gulf Properties 293 7,343
Pan Pacific Properties Inc 141 2,838
Park National Corp 134 12,161
Parkway Properties Inc 157 4,789
Penn Real Estate Investment Trust 195 3,339
Peoples Bank 438 8,048
PFF Bancorp Inc 208 3,796
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCIAL - 16.17% (CONTINUED)
Philadelphia Cons Holdings Co* 100 $ 1,681
Phoenix Investment Partners 703 7,382
PICO Holdings* 211 2,967
Pioneer Group Inc* 372 15,764
PMA Capital Corp 270 5,130
Premier National Bank 251 3,263
Prentiss Properties Trust 573 13,752
Presidential Life 326 4,523
Prime Group Realty Trust 151 2,293
Prison Realty Trust Inc 1,882 5,764
Provident Bankshares Corp 399 5,387
Provident Financial Group 348 8,287
PSB Business Parks Inc 372 8,928
Queens County Bancorp Inc 262 4,831
R & G Financial Corp Class B 161 1,278
Raymond James Financial Corp 624 14,040
Realty Income Corp 424 9,991
Reckson Assoc Realty Corp 649 15,414
Regency Realty Corp 490 11,638
Reliance Group Holdings 1,040 780
Republic Bancorp Inc 719 6,426
Republic Security Financial Corp 775 3,875
RFS Hotel Investors Inc 389 4,571
Richmond County Financial Corp 488 9,333
Riggs National Corp 303 3,825
RLI Corporation 126 4,379
Roslyn Bancorp Inc 1,060 17,606
S & T Bancorp Inc 429 7,829
Sandy Spring Bancorp Inc 152 3,107
Santander Bancorp 131 1,670
Saul Centers Inc 171 2,757
Scpie Holdings Inc 149 3,055
Seacoast Financial Services 404 3,838
Security Capital Group Inc* 485 8,245
Selective Insurance Group 416 7,904
Senior Housing Properties Trust 207 1,514
Shoreline Financial Corp 8 95
Shurgard Storage Centers 464 10,440
Silicon Valley Bancshares* 638 27,195
Sky Financial Group Inc 1,229 19,587
SL Green Realty Corp 344 9,202
Smith Charles E Residential 333 12,654
South Financial Group Inc 684 9,918
Southwest Bancorp Of Texas* 450 9,338
Southwest Securities 229 8,530
Sovereign Bancorp Inc 3,590 25,242
Sovran Self Storage Inc 192 4,116
Stancorp Financial Group 504 16,191
State Auto Financial Corp 191 2,268
Staten Island Bancorp Inc 585 10,311
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
57
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
FINANCIAL - 16.17% (CONTINUED)
Sterling Bancshares 414 $ 4,476
Stewart Information Services* 163 2,384
Storage USA Inc 440 12,980
Student Loan Corp 63 2,646
Summit Properties Inc 394 8,274
Sun Communities Inc 278 9,296
Susquehanna Bankshares Inc 624 8,892
Tanger Factory Outlet Center 82 1,927
Taubman Centers Inc 542 5,962
Texas Regional Bancshares 230 5,836
The Trust Company of New Jersey 258 4,709
Town & Country Trust 253 4,348
Trammell Crow Co* 388 4,171
Trenwick Group Inc 258 3,757
Triad Guaranty Inc* 211 4,840
Trustco Bank Corp New York 850 10,625
Trustmark Corp 977 17,036
Tucker Anthony Sutro 261 4,698
UCBH Holdings Inc 148 3,950
UICI* 594 3,898
UMB Financial Corp 255 8,367
United Asset Management Corp 782 18,279
United Bankshares Inc 549 9,985
United Community Financial 479 3,188
United Dominion Realty Trust 1,640 18,040
United National Bancorp 253 4,649
Urban Shopping Centers Inc 162 5,457
USB Holding Co Inc 149 2,105
Ventas Inc* 956 3,047
W Holding Company Inc 439 3,622
Washington Federal Inc 869 15,859
Washington Reit Estate Investments 568 10,153
Webster Financial Corporation 678 15,043
Weingarten Realty Investments 425 17,140
Wesbanco Inc 306 7,421
WestAmerica Bancorporation 576 15,048
Westcorp 131 1,564
Western Properties Trust 275 3,266
Westfield America Inc 459 6,168
WFS Financial Inc* 143 2,467
Whitney Holdings Company 359 12,273
Wit Soundview Group Inc* 1,142 12,259
Zenith National Insurance 146 3,103
----------
2,558,999
----------
INDUSTRIAL - 14.25%
A. O. Smith Common Stock 334 6,993
Act Manufacturing Inc* 169 7,848
Analogic Corp 99 3,960
ADE Corp* 152 2,907
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
INDUSTRIAL - 14.25% (CONTINUED)
Advanced Energy Industries* 178 $ 10,491
Advanced Lighting Technology* 221 4,089
Agco Corp 947 11,601
Airborne Freight Corp 779 14,752
Albany International Corp Class A* 276 4,002
Alexander & Baldwin Inc 661 14,583
Amerco* 137 2,740
American Freightways Corp* 345 5,003
American National Can Group 476 8,033
American Superconductor* 304 14,668
American Technology Ceramics Corp* 48 1,338
Ametek Inc 508 8,890
Anadigics* 473 16,112
Applied Industrial Technology 322 5,273
Applied Power Inc 621 20,804
Applied Science & Technology Inc* 180 4,658
Aptargroup Inc 571 15,417
Arkansas Best Corp* 247 2,455
Armstrong Holdings Inc 600 9,188
Arnold Industries Inc 323 3,896
Artesyn Technologies Inc* 507 14,101
Astec Industries Inc* 244 6,192
Asyst Technologies Inc* 475 16,269
Atlas Air Inc* 245 8,789
Baldor Electric 380 7,078
Ball Corp 472 15,193
Barnes Group Inc 263 4,290
Bel Fuse Inc - Class B 135 3,611
Belden Inc* 386 9,891
Benchmark Electronics Inc* 259 9,470
Blount International Inc* 60 461
Brady Corporation 281 9,133
Briggs & Stratton 354 12,125
Brooks Automation Inc* 264 16,880
C&D Technologies Inc 405 22,883
Cable Design Technologies* 453 15,176
Calgon Carbon Corp 542 4,201
California Amplifier Inc* 190 8,693
Carlisle Cos Inc 481 21,645
Casella Waste Systems Inc - A* 318 3,419
Catalytica Inc* 480 5,280
Centex Construction Products 116 2,632
Cerus Corp* 118 3,105
Checkpoint Systems Inc* 456 3,420
Circle International Group Inc 218 5,477
Clarcor Inc 385 7,652
CNF Transportation Inc 771 17,540
Coherent Inc* 391 32,795
Cohu Inc 320 8,630
Columbus Mckinnon Corporation 198 2,747
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
58
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
INDUSTRIAL - 14.25% (CONTINUED)
Comfort Systems Usa* 461 $ 1,844
Commercial Metals Company 226 6,215
Concord Camera Corp* 313 6,534
Coorstek Inc* 36 1,656
CTS Corp 442 19,890
Cummins Engine 659 17,958
Cuno Incorporated* 258 5,966
Cyberoptics Corporation* 107 4,949
Cymer Inc* 461 22,013
Dal-Tile International Inc* 871 7,186
Detroit Diesel Corp 125 1,844
Dexter Corp 367 17,616
Digital Courier Technologies Inc* 179 5,102
Dionex Corp* 350 9,363
Donaldson Co Inc 639 12,620
DSP Group Inc* 420 23,520
Earthshell Corporation* 458 1,388
EGL Inc* 222 6,827
Elcor Corp 311 7,153
Electro Scientific Industries Inc* 424 18,669
Emcor Group Inc* 146 3,385
Energy Conversion Devices* 196 4,974
Esco Electronics Corp* 180 3,060
Esterline Technologies Corp* 275 4,091
Excel Technology Inc* 141 7,094
Federal Signal 720 11,880
FEI Company* 222 6,771
Fisher Scientific International* 637 15,766
Florida Rock Industries 294 10,474
Flowserve Corporation* 595 8,962
Forward Air Corporation* 217 8,680
Foster Wheeler Corp 609 5,253
Franklin Electric 68 4,607
Fritz Companies Inc* 335 3,455
FSI International Inc* 399 8,653
Fuelcell Energy Inc* 68 4,696
Gardner Denver Inc* 207 3,700
Gasonics International Corp* 207 8,164
Gaylord Container Corp* 877 2,357
General Cable Corp 478 3,884
Genlyte Group Inc* 192 4,044
Genrad Inc* 427 3,843
Gentek Inc 100 1,119
Gerber Scientific Inc 311 3,577
Graco Incorporated 322 10,465
Granite Construction Inc 302 7,399
Greif Brothers Corporation 214 6,581
Griffon Corporation* 414 2,303
Harsco Corporation 635 16,193
Heartland Express Inc* 232 3,872
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
INDUSTRIAL - 14.25% (CONTINUED)
Helix Technology Corp 359 $ 14,001
Hexcel Corp* 295 2,803
Hunt (J.B.) Transportation Services
Inc 275 4,245
Identix Inc* 361 5,663
Idex Corp 471 14,866
II-Vi Inc* 72 3,483
Imation Corporation* 568 16,685
Insituform Technologies - Class A* 299 8,110
Interlink Electronics Inc* 176 7,370
Interlogix Inc* 135 1,856
Interpool Inc 195 1,901
Ionics Inc* 257 7,871
Ivex Packaging Corp* 323 3,593
Jacobs Engineering Group Inc* 357 11,669
JLG Industries Inc 661 7,849
Justin Industries 258 5,644
Kaydon Corp 478 10,038
Keithley Instruments Inc 126 10,978
Kennametal Inc 483 10,354
Kent Electroncis Corp* 450 13,416
Kirby Corp* 389 8,266
Knight Transportation Inc* 110 1,602
Kulicke & Soffa Industries* 383 22,741
Lancaster Colony Corp 503 9,651
Landstar System Inc* 142 8,458
Lawson Products 87 2,142
Lennox International Inc 644 8,533
Lincoln Electric Holdings 554 7,895
Lindsay Manufacturing Co 195 3,827
Liqui-Box Corp 48 2,376
Littlelfuse Inc* 311 15,239
Longview Fibre Co 821 9,082
M S Carriers Inc* 139 2,450
Magnetek Inc* 305 2,440
Manitowoc Company Inc 392 10,486
Mark IV Industries Inc 740 15,448
Mascotech Inc 584 6,315
Matthews International Corp 224 6,496
Maverick Tube Corp* 284 8,272
Meade Instruments Corp* 133 3,342
Mechanical Technology* 367 5,505
Metals USA Inc 400 1,875
Methode Electronics Class A 565 21,823
Mettler-Toledo International* 615 24,600
Micrel Inc* 486 21,111
Milacron Inc 568 8,236
Mine Safety Appliances Inc 148 3,552
Molecular Devices Corp* 178 12,315
Moog Inc Class A* 116 3,060
Morrison Knudsen Corp* 516 3,741
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
59
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
INDUSTRIAL - 14.25% (CONTINUED)
Mueller Industries* 548 $ 15,344
Myers Industries Inc 237 2,548
Nacco Industries Class A 102 3,583
Nanometrics Inc* 70 2,883
National Service Inds 647 12,617
NCH Corp 40 1,448
NCI Building Systems Inc* 288 5,832
Newport News Shipbuilding Inc 462 16,979
Nordson Corp 224 11,340
Nortek Inc* 151 2,982
NS Group Inc* 265 5,548
Offshore Logistics Inc* 335 4,816
Overseas Shipholding Group 401 9,875
Owens-Corning Fiberglass Corp 808 7,474
Packard Bioscience* 191 3,247
Packaging Corp of America* 740 7,493
Pactiv Corporation* 2,686 21,152
Park Electrochemical Corp 149 5,373
Paxar Corporation* 626 7,473
Penn Engineering And Manufacturing 97 3,419
Pericom Semiconductor Corp* 165 11,220
Photon Dynamics Inc* 183 13,668
Pittston Brink's Group 823 11,265
Polaroid Corp 713 12,879
Polymer Group Inc 329 3,043
Power Integrations Inc* 433 10,203
Precision Castparts 389 17,602
Presstek Inc* 441 7,194
PRI Automation Inc* 319 20,860
Quanex Corp 226 3,362
Rayonier Inc 435 15,606
Rayovac Corp* 437 9,778
Regal-Beloit 333 5,349
Research Frontiers Inc* 159 4,770
Roadway Express Inc 197 4,617
Robbins & Myers 124 2,829
Robotic Vision Systems Inc* 546 9,828
Rogers Corp* 236 8,260
Rollins Truck Leasing 755 5,238
Roper Industries Inc 480 12,300
Ryder System 945 17,896
Sauer-Danfoss Inc 313 3,091
SBS Technologies Inc* 91 3,361
Scott Technologies Inc* 200 3,438
Semitool Inc* 241 4,172
Sensormatic Electronics Corp* 1,121 17,726
Shaw Group Inc* 211 9,943
Thermedics 298 2,961
Simpson Manufacturing* 129 6,168
Sipex Corporation* 348 9,635
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
INDUSTRIAL - 14.25% (CONTINUED)
SLI Inc 274 $ 3,322
Snap On Tools Inc 931 24,788
Specialty Equip Co* 185 5,018
Spectra-Physics Lasers Inc* 56 3,917
Speedfam-Ipec Inc* 397 7,220
SPS Technologies Inc* 201 8,254
Stacon Technology Corp* 120 3,068
Standard Microsystems Corp* 220 3,383
Standex International Corp 179 2,842
Stericycle Inc* 217 5,208
Stewart & Stevenson Services 445 6,703
Stoneridge Incorporated* 200 1,750
Sturm Ruger & Co Inc 309 2,742
Superconductor Technologies* 277 10,890
Surmodics Inc* 94 2,444
Swift Transportation Co* 683 9,562
Syntroleum Corp* 434 7,432
Technitrol 186 18,019
Tecumseh Products Co Class A 254 9,700
Teleflex Inc 606 21,665
Telxon Corp* 234 4,183
Tennant Co 143 5,363
Terex Corp* 411 5,805
Tetra Tech Inc* 546 12,490
Texas Industries Inc 335 9,673
Therma-Wave Inc* 173 3,860
Thermo Ecotek Corporation* 35 328
Thermo Fibertek Inc* 95 451
Thomas Industries Inc 246 4,351
Timken Co 790 14,714
Tredegar Corporation 404 7,676
Trex Company Inc* 88 4,400
Trimble Navigation Limited* 365 17,817
Trinity Industries 624 11,544
U S Industries 1,299 15,750
UCAR International Inc* 754 9,849
Universal Display Corp* 198 5,878
Universal Electronics Inc* 218 5,355
Universal Forest Products 173 2,379
Unova Inc* 681 4,980
URS Corporation* 205 3,126
US Aggregates Inc 81 1,468
US Can Corp* 139 2,415
USFreightways Corp 423 10,390
Valence Technology Inc* 461 8,500
Valmont Industries 227 4,512
Varian Inc* 511 23,570
Veeco Instruments Inc* 374 27,370
Viasystems Group Inc* 693 11,218
Vicor Corp* 311 10,827
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
60
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
INDUSTRIAL - 14.25% (CONTINUED)
Wabtec 440 $ 4,565
Waste Connections* 265 5,234
Watts Industry 263 3,320
Werner Enterprises Inc 443 5,122
Wisconsin Central Transportion* 814 10,582
Wolverine Tube Inc* 132 2,244
Woodhead Industries Inc 180 3,285
Woodward Governor Co 133 3,766
Worthington Inds Inc 1,125 11,813
X-Rite Inc 268 2,446
Xtra Corp* 191 7,533
Yellow Corporation* 401 5,915
York International Corp 604 15,251
Zebra Tech Class A* 405 17,947
Zygo Corp* 204 18,526
----------
2,254,774
----------
TECHNOLOGY - 26.79%
24/7 Media Inc* 277 4,328
3DFX Interactive Inc* 338 2,630
3DO Company* 404 3,169
AAR Copr 428 5,136
About.Com Inc* 216 6,804
Accrue Software Inc* 341 12,106
Aclara Biosciences* 143 7,284
Actel Corp* 342 15,604
Active Software Inc* 273 21,209
Actuate Software Corp* 447 23,859
Adaptive Broadband Corp* 595 21,866
Adelphia Business Solutions* 432 10,017
Adept Technology Inc* 134 6,265
Advanced Digital Information Corp* 817 13,021
Advanced Radio Telecom Corp* 402 5,879
Advanced Tissue Sciences* 951 7,638
Advantage Learning Systems Inc* 146 2,245
Advent Software Inc* 412 26,574
Aeroflex Inc* 340 16,894
Agency.Com Limited* 94 1,674
Airgate PCS Inc* 145 7,622
Airnet Communications Corp* 88 2,299
Alamosa PCS Holdings* 165 3,444
Alaska Comm Systems Group* 161 1,670
Alexion Pharmaceuticals Inc* 200 14,300
Allaire Corp* 359 13,193
Allen Telecom Inc* 443 7,836
Alliance Semiconductor* 415 10,193
Alliant Techsystems Inc* 158 10,655
Allied Riser Communications* 830 11,724
Allscripts Inc* 287 6,601
American Telecource International Inc* 886 5,593
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
American Xtal Technology Inc* 261 $ 11,288
Analysts International Corp 329 3,064
Anaren Microwave Inc* 173 22,704
Ancor Communications Inc* 463 16,559
Anixter International* 339 8,984
Anwserthink Inc* 527 8,761
Aphton Corp* 215 5,536
Applied Theory Corp* 107 1,605
Appnet Systems Inc* 539 19,404
Arch Communications Group* 786 5,109
Aremissoft Corporation* 156 4,856
Arguss Holdings Inc* 181 3,416
Ariad Pharmaceuticals Inc* 367 4,886
Armor Holdings Inc* 270 3,510
ASK Jeeves* 326 5,888
Aspen Technology Inc* 414 15,939
ATMI Inc* 345 16,043
Audiovox Corporation* 250 5,516
Avant Immunotherapeutics Inc* 711 7,510
Avant! Corporation* 620 11,615
Avid Tech Inc* 366 4,392
Avigen Inc* 229 10,047
Aviron* 272 8,398
AVT Corporation* 410 3,024
Aware Inc/Mass* 264 13,497
Axent Technologies Inc* 457 11,339
Barra Inc* 178 8,822
BE Free Inc* 370 3,330
Bell & Howell Company 236 5,723
Bindview Development Corp* 588 7,056
Biocryst Pharmaceuticals Inc* 202 5,795
Bio-Rad Laboratories Class A* 128 3,200
Bio-Technology General Corp* 861 11,354
Black Box Corporation* 304 24,068
Blaze Software Inc* 50 681
Bluestone Software* 208 5,343
Bottomline Technologies Inc* 115 3,932
Braun Consulting* 137 2,894
Breakaway Solutions Inc* 159 4,293
Brio Technology Inc* 199 4,216
Broadbase Software Inc* 494 15,129
Brooktrout Inc* 194 4,232
Bsquare Corp* 180 4,039
C Cube Microsystems Inc - New* 645 12,658
CACI International Inc Class A* 159 3,101
CAIS Internet Inc* 101 1,420
Caldera Systems Inc* 78 1,019
Caliper Technologies Corp* 70 3,220
Cambridge Tech Partners* 832 7,254
Caminus Corp* 70 1,715
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
61
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Caprock Communications* 531 $ 10,355
Carinsite Inc* 141 2,520
Carreker Corporation* 155 1,395
Carrier Access Corp* 152 8,037
C-Bridge Internet Solutions* 64 1,112
CCC Information Services Group* 354 3,761
C-Cor.Net Corporation* 438 11,826
Celeritek Inc* 148 6,040
Cell Genesys* 532 14,896
Centennial Cellular Corp* 121 1,664
Centillium Communications* 61 4,209
Cerner Corp* 394 10,737
Choice One Communications Inc* 114 4,653
Chordiant Software Inc* 71 1,180
Ciber Inc* 731 9,686
Cirrus Logic Inc* 882 14,112
Clarent Corp* 306 21,879
Clarus Corporation* 223 8,669
Click2learn.Com Inc* 146 2,573
Cobalt Networks Inc* 443 25,639
Cognizant Tech Solutions Corp* 95 3,153
Collateral Therapeutics Inc* 116 2,942
Com21 Inc* 347 8,675
Commonwealth Telephone Enterprise* 167 7,859
Complete Business Solutions* 412 7,236
Computer Horizons Corp* 503 6,759
Computer Network Technologies Corp* 381 6,620
Comsat Corp 798 18,753
Concord Communications* 258 10,288
Concurrent Computers Corp* 825 10,828
Convergent Communications Inc* 199 1,592
Coolsavings Com Inc* 49 297
Cope Inc* 25 1,330
Corillian Corp* 62 1,031
Corsair Communications Inc* 280 8,050
Creative Biomolecules Inc* 386 5,404
Crossroads Systems* 142 3,586
Cryolife Inc* 168 3,864
CT Communications Inc 257 7,308
CTC Communications Corp* 216 7,776
Curagen Corp* 392 14,921
Curtiss-Wright Corp 77 2,863
Cyber-Care Inc* 716 7,126
Cybersource Corp* 300 4,144
Cylink Corporation* 347 5,812
Cypress Communications* 157 1,138
Cysive Inc* 53 1,265
Cytogen Corp* 1,140 11,543
Daleen Technologies Inc* 155 2,393
Data Return Corp* 198 5,742
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Datastream Systems* 258 $ 3,225
Davox Corp* 163 2,109
Deltathree.Com Inc Class A* 145 2,112
Deltek Systems Inc* 142 839
Dendrite International Inc* 481 16,023
Digene Inc* 166 6,702
Digimarc Corp* 130 5,005
Digital Courier Tech Inc* 500 3,188
Digital Impact Inc* 116 1,639
Digital Insight Corp* 265 9,010
Digital Island* 1,026 49,889
Digital River Inc* 306 2,352
Digitalthink Inc* 68 2,440
Digitas Inc* 144 2,349
Diversa Corp* 121 4,008
Documentum Inc* 252 22,523
Dot Hill Systems Corp* 176 1,936
Dset Corp* 150 4,556
DSL.Net Inc* 435 4,486
Dupont Photomasks Inc* 76 5,206
E.Medsoft.Com* 604 4,832
E.Spire Communications Inc* 830 5,603
Eclipsys Corporation* 583 4,373
Egain Communications Corp* 313 3,795
Egolbe Inc* 922 2,766
Elantec Semiconductor Inc* 310 21,584
Electric Lightwave Inc Class A* 144 2,691
Electroglas Inc* 328 7,052
ELOYALTY Corporation* 746 9,512
Emachines Inc* 322 865
Emagin Corporation Corp* 320 4,100
Embarcadero Technologies* 64 1,880
Emcore Corporation* 191 22,920
Emerge Interactive Inc* 104 1,866
Entremed Inc* 225 6,736
Envision Development* 48 1,056
Enzo Biochem Inc* 354 24,426
Enzon Inc* 645 27,413
Epicedge Inc* 146 3,358
Eplus Inc* 80 2,115
Epresence Inc* 370 2,683
E-Prise* 67 1,101
Espeed Inc - Class A* 143 6,212
Ess Technology Inc* 414 6,003
Exar Corp* 296 25,808
Excalibur Technologies Corp* 174 6,949
Excelon Corporation* 404 3,207
Exchange Applications* 372 9,905
Exelixis Inc* 142 4,739
Extended Systems* 116 11,136
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
62
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Extensitv Inc* 65 $ 2,226
F5 Networks Inc* 266 14,514
Factset Research Systems Inc 319 9,012
Fair Issac & Company Inc 180 7,920
Fibernet Telecom Group Inc* 123 2,091
Filenet Corporation* 540 9,923
Firepond Inc* 77 2,772
First World Communications* 158 1,659
Firstcom Corporation* 410 6,176
Futurelink Corporation* 562 4,039
Gadzoox Networks Inc* 147 2,012
Gencorp Inc 532 4,256
Gene Logic Inc* 404 14,418
General Communication* 664 3,403
General Semiconductor Inc* 560 8,260
Genome Therapeutics Corp* 327 9,953
Genomic Solutions* 19 278
Genzyme Transgenics Corp* 295 8,002
Geoworks Corporation* 191 3,008
Geron Corp* 340 10,880
Getthere.Com Inc* 99 1,046
Glenayre Technologies* 1,021 10,784
Globalnet Financial.Com* 345 7,245
Globix Corporation* 265 7,768
Go2net Inc* 433 21,785
Goamerica Inc* 157 2,424
Golden Telecom Inc* 143 4,254
Goto.Com Inc* 391 5,987
Great Plains Software Inc* 177 3,474
Gric Communications Inc* 73 1,309
Heico Corp 116 1,653
Hi/Fn Inc* 108 4,793
High Speed Access Corp* 503 3,301
Hnc Software* 396 24,453
Hollywood.Com Inc* 244 1,891
Hutchinson Technology* 394 5,615
Hypercom Corporation* 201 2,889
Hyperion Solutions Corp* 516 16,738
IBASIS Inc* 172 7,407
IBEAM Broadcasting Corp* 168 3,024
IBIS Technology Corp* 131 7,909
ICG Communications Inc* 772 17,032
IDT Corp* 348 11,810
IDX Systems Corp* 242 3,418
Igate Capital Corporation* 548 7,535
Illuminet Holdings Inc* 332 16,891
Immersion Corporation* 201 6,030
Immunomedics Inc* 478 11,711
Impsat Fiber Networks Inc* 189 3,166
ImrGlobal Corp* 313 4,089
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Inacom Corp* 722 $ 677
Indus International Inc* 216 1,850
Infocus Corporation* 366 11,781
Infogrames Inc* 68 553
Informatica Corp* 379 31,054
Information Architects Corp* 327 2,269
Inforte Corp* 31 1,116
Infousa Inc* 438 2,847
Inhale Therapeutic Systems* 256 25,976
Inprise Corporation* 871 5,335
Integrated Circuit Systems* 201 3,442
Integrated Silicon Solution* 378 14,364
Intelect Communications Inc* 1,204 2,784
Intelidata Technologies Corp* 609 6,280
Inter-Tel Inc 330 5,301
Interact Commerce Corp* 224 2,646
Interactive Intelligence Inc* 68 2,550
Intercept Group Inc* 128 2,176
Interdigital Comm Corp* 842 13,946
Intergraph Corp* 699 5,286
Interliant Inc* 754 17,578
Intermune Pharmaceuticals* 108 4,462
Internet Pictures Corpc* 735 11,117
Internet.Com Corp* 177 3,485
Intertrust Technologies* 969 19,925
Intervoice-Brite Inc* 510 3,347
Interworld Corp* 291 5,966
Interwoven Inc* 268 29,476
Intl Fibercom Inc* 416 10,608
Intranet Solutions Inc* 246 9,440
Intraware Inc* 227 3,646
Intrusion.Com Inc* 239 2,704
Invitrogen Corp* 133 10,002
Iomega Corp* 4,303 17,212
ITC Deltacom Inc* 801 17,872
ITXC Corp* 97 3,434
Ivillage Inc* 328 2,768
IXL Enterprises Inc* 657 9,527
IXYS Corporation* 37 1,975
J.D Edwards* 846 12,743
JDA Software Group Inc* 332 6,370
JNI Corp* 96 3,036
Juno Online Services Inc* 274 2,946
Kaman Corporation 357 3,815
Keynote Systems Inc* 253 17,852
Kronos Inc* 186 4,836
Lante Corp* 233 4,762
Latitude Communications Inc* 203 2,271
LCC International Inc Class A* 164 4,479
Leap Wireless International Inc* 402 18,894
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
63
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Legato Systems Inc* 1,379 $ 20,857
Level 8 Systems* 90 1,896
Lexicon Genetics Inc* 158 5,431
Lifeminders Inc* 181 5,351
Lightbridge Inc* 270 6,446
Lightpath Technology* 188 7,485
Lightspan Inc* 119 655
Liveperson Inc* 65 565
Looksmart Ltd* 641 11,859
Loudeye Technologies* 71 1,238
LTX Corp* 740 25,854
LYNZ Therapeutics* 157 7,467
Mail.Com Inc* 637 3,623
Manhattan Associates* 68 1,700
Manugistics Group Inc* 363 16,970
Mapinfo Corp* 145 5,891
Mapquest.Com Incorporated* 80 1,325
Marimba* 226 3,150
Marketwatch.Com Inc* 52 978
Martek Bioscience Corp* 278 5,213
Matrixone Inc* 86 3,494
Mattson Technology Inc* 245 7,963
Maxim Pharmaceuticals Inc* 318 16,337
Maxtor Corp* 1,007 10,636
Maxygen Inc* 118 6,698
Mcaffe.Com Corp.* 97 2,528
MCK Communications* 152 3,515
MCSI Inc* 160 4,140
Media 100 Inc* 165 4,249
Media Metrix, Inc.* 213 5,418
Mediaplex Inc* 188 3,631
Medicalogic* 156 1,443
Memc Electronic Materials* 529 9,522
Mentor Graphics* 1,039 20,650
Mercator Software Inc* 391 26,881
Mercury Computer Systems Inc* 325 10,502
Metacreations Corp* 347 4,164
Metasolv Software Inc* 151 6,644
Metawave Communications Corp* 99 2,642
Metricom Inc* 333 9,282
Metrocall Inc* 1,183 10,647
MGC Communications Inc* 504 30,209
Micro Systems Inc* 261 4,845
Micron Electronics Inc* 557 6,963
Microsemi Corp* 167 5,668
Microstrategy Inc* 417 12,510
Midway Games Inc* 465 3,749
Mips Technologies Inc* 611 25,968
MKS Instruments Inc* 79 3,091
MMC Networks Inc* 460 24,581
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Motient Corporation* 531 $ 8,330
MRV Communications Inc* 790 53,128
MSI Holdings Inc* 580 5,256
MTI Technology Corp* 506 4,048
Multex.Com Inc* 247 6,221
My Points Com Inc* 277 5,250
Myriad Genetics Inc* 145 21,471
Nanogen Inc* 228 9,676
National Computer Systems In 517 25,462
National Data Corp 521 11,983
National Info Consortium Inc* 255 2,901
Natural Microsystems Inc* 262 29,459
NBC Internet Inc* 551 6,888
Neon Systems Inc.* 64 1,200
Neose Technologies Inc* 172 7,235
Net Perceptions Inc* 205 3,254
Net Genesis Corporation* 70 1,264
Net 2000 Communications Inc* 160 2,620
Net2phone Inc* 115 4,104
Netcentives Inc* 366 6,817
Netcreations Inc* 53 2,428
Netegrity Inc* 274 20,636
Netguru Inc* 73 1,305
Netiq Corp* 377 22,479
Netmanage Inc* 841 3,758
Netobjects Inc* 155 1,414
Netopia Inc* 210 8,453
Netpliance Inc* 124 1,132
Netratings Inc* 61 1,563
Netrix Corp* 544 6,698
Netro Corp* 541 31,040
Netscout Systems Inc* 204 2,627
Netsilicon Inc* 97 3,177
Netsol International Inc* 55 1,953
Netsolve Incorporated* 94 2,444
Network Access Solutions* 260 2,486
Network Equipment Tech Inc* 340 3,421
Network Peripherals Inc* 246 4,121
Network Plus Corp* 156 2,213
Netzero Inc* 498 2,599
New Era of Networks Inc* 401 17,043
Nexell Therapeutics Inc* 118 1,755
Nhancement Technologies Inc* 146 1,944
Niku Corp* 132 4,455
North Pittsburgh Systems 238 3,511
Northeast Optic Network Inc* 84 5,177
Novadigm Inc* 191 3,772
Nuance Communications* 69 5,749
Nucentrix Broadband Networks* 140 3,570
Numerical Technologies Inc* 89 4,328
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
64
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Nyfix Inc* 334 $ 14,007
Oak Technology Inc* 653 14,080
Objective Systems Integrator* 314 3,356
On2.Com Inc* 295 1,512
Ondisplay Inc* 54 4,398
Onemain.Com Inc* 346 3,893
Onyx Software Corp* 322 9,559
Open Market Inc* 565 7,804
Optical Cable Corp* 38 1,150
Opus 360 Corp* 119 439
Orbital Sciences Corp* 594 7,239
Orchid Biosciences* 95 3,607
Organogenesis Inc* 538 6,153
Osicom Technlogies Inc* 162 13,709
Otg Software* 81 2,314
P Com Inc* 1,079 6,137
Packeteer Inc* 260 7,573
Pac-West Telecomm Inc* 279 5,580
Paradigm Genetics Inc* 78 951
Paradyne Networks Inc* 260 8,466
PC-Tel Inc* 197 7,486
PEC Solutions Inc* 49 398
Perot Systems Corp - Class A* 916 10,076
Per-Se Technologies Inc* 474 4,444
Persistence Software Inc* 170 3,081
Phoenix Technologies Ltd* 363 5,921
Photronics Inc* 321 9,108
Pinnacle Systems Inc* 687 15,447
Pioneer Standard Electronics 430 6,343
Pixelworks Inc* 90 2,048
Plantronics Inc* 260 30,030
PLX Technology Inc* 243 10,085
Policy Management Systems Co* 565 8,687
Predictive Systems Inc* 64 2,300
Preview Systems Inc* 60 780
Price Communications Corp* 723 17,036
Primex Technology Inc 148 3,256
Primus Knowledge Solutions* 188 8,460
Probusiness Services Inc* 232 6,163
Procom Technology Inc* 76 3,928
Prodigy Communications - Class A* 331 3,476
Progress Software Corp* 536 9,615
Project Software & Development* 210 3,780
Proxim Inc* 200 19,794
Puma Technology* 495 13,272
QRS Corp* 203 4,986
Quantum Corp-Hard Disk Drive* 1,341 14,835
Quantum Effect Devices Inc* 59 3,363
Quicklogic Corp* 306 6,809
Quintus Corp* 277 5,501
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Quokka Sports Inc* 345 $ 2,771
Radiant Systems Inc* 259 6,216
Radisys Corp* 225 12,769
Rainbow Technologies* 163 7,926
Ramp Networks Inc.* 229 2,719
Rare Medium Group Inc* 443 7,005
Razorfish Inc* 178 2,859
Regeneron Pharmaceutical* 285 8,497
Register.Comm* 78 2,384
Remec Inc* 590 24,706
Remedy Corp* 413 23,025
Retek Inc* 103 3,296
Rhythms Netconnections Inc.* 975 12,248
Ribozyme Pharmaceuticals Inc* 142 3,665
Rudolph Technologies Inc* 79 3,061
Rural Cellular Corp Class A* 152 11,638
S3 Incorporated* 1,429 21,078
Saba Software Inc* 61 1,281
Saga Systems Inc* 462 5,746
Sagent Technology Inc* 245 3,491
Sanchez Computer Associates* 204 4,845
Savvis Communications Corp* 265 3,462
SBA Communications Corp* 378 19,632
Scientific Learning Corp* 54 1,195
Scm Microsystems, Inc* 204 12,355
Seachange International Inc* 267 7,710
Secure Computing Corp* 392 7,375
Selectica* 65 4,554
Sequa Corporation* 95 3,628
Sequenom Inc.* 83 3,766
Sequoia Software* 64 1,048
Serena Software Inc* 243 11,034
Silicon Graphics Inc* 2,938 11,018
Silicon Image Inc* 250 12,469
Silicon Valley Group Inc* 530 13,714
Silverstream Software Inc* 186 10,742
Smartdisk Corporation* 108 2,970
Smartserv Online* 63 4,445
Softnet Systems Incorporated* 447 4,302
Software Technologies Corp* 64 1,964
Somera Communications* 463 6,308
Sonasight Inc* 148 4,264
Sonic Foundry Inc* 165 3,300
Sonicwall Inc* 180 15,851
Spectralink Corp* 188 2,750
Sportsline.Com Inc* 288 4,914
SPSS Inc* 136 3,961
Spyglass Inc* 262 8,204
Stanford Microdevices Inc* 65 2,823
Starbase Corp* 689 7,321
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
65
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
SCHEDULE OF INVESTMENTS RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Starmedia Network Inc* 574 $ 10,834
Storage Technology Corp* 1,492 16,319
Structural Dynamics Research* 572 8,616
Superior Telecom Inc 145 1,441
Supertex Inc* 122 6,131
SVI Holdings Inc* 217 1,112
Switchboard Incorporated* 86 860
Sykes Enterprises Inc* 384 4,944
Symmetricom Inc* 240 6,060
Syntel Inc* 82 820
Systems & Computer Technology Co* 516 10,320
Take-Two Interactive Software* 330 4,001
Talk.Com Inc* 935 5,435
Tanning Technology Corp* 194 3,735
Targeted Gemetocs Corp* 423 6,292
Techniclone Corporation* 1,254 4,859
Technology Solutions Inc* 698 4,319
Telaxis Communications Corp* 64 2,000
Telecom Semiconductor* 258 10,417
Teledyne Technologies Inc* 426 7,136
Teligent Inc Class A* 274 6,473
Telocity Inc* 173 789
Tenfold Corporation* 211 3,468
Texas Biotech Corp* 648 12,312
The Vialink Co* 269 2,774
THQ Inc* 304 3,705
Three Five Systems Inc* 336 19,824
Tollgrade Communications Inc* 184 24,380
Transaction Systems Archit* 524 8,974
Transkaryotic Therapies Inc* 317 11,650
Tricord Systems Inc* 269 4,859
Triumph Group Incorporated* 185 5,157
Trizetto Group Inc* 206 3,335
Tumble Weed Communications* 136 6,919
TUT Systems Inc* 240 13,770
U.S. Interactive Inc* 274 3,545
Ulticom Inc* 64 1,537
Ultratech Stepper Inc* 341 5,072
Unify Corp* 257 2,201
Unigraphics Solutions Inc* 74 1,443
Universal Access Inc* 177 4,337
Uproar Inc* 39 290
US Lec Corp - Class A* 155 2,635
US Wireless Corporation* 143 3,057
Valueclick Inc* 62 636
Varian Semiconductor Equip* 492 30,904
Vasco Data Security International* 184 2,519
Verity Inc* 434 16,492
Versata Inc* 63 2,540
Vertel Corp* 438 7,665
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
TECHNOLOGY - 26.79% (CONTINUED)
Vertex Interactive Inc* 185 $ 1,885
Via Net.Works Inc* 235 3,628
Viador Inc* 172 2,731
Viant Corp* 599 17,745
Viasat Inc* 123 6,673
Vical Inc* 315 6,064
Vicinity Corp* 111 2,178
Visual Networks Inc* 400 11,400
Voicestream Wireless Corp* 1 116
Voyager.Net Inc* 143 1,144
Vyyo Inc* 113 3,051
Watchguard Technologies Inc* 175 9,614
Wave Systems Corp - Class A* 735 11,622
Weblink Wireless Inc* 737 9,765
Websense Inc* 64 1,608
Webtrends Corp* 205 7,931
Westell Technologies Inc* 279 4,185
Western Digital Corp* 2,215 11,075
White Electronic Designs* 231 2,931
Women.Com Networks Inc* 268 553
World Access Inc* 964 10,664
Worldgate Communications Inc* 198 3,515
Xircom Inc* 422 20,012
Xpedior Inc* 135 1,865
Xybernaut Corporation* 492 5,504
Zixit Corporation* 263 12,114
Zoran Corp* 223 14,704
Z-Tel Technologies* 100 1,200
----------
4,240,726
----------
UTILITIES - 4.00%
AGL Resources 863 13,754
American States Water Co 142 4,225
Atmos Energy Inc 502 8,785
Avista Corp 749 13,061
Azurix Corp* 615 4,305
Black Hills Corp 340 7,671
C F W Communications Co 208 7,800
California Water Service Corp 188 4,559
Cascade Natural Gas Corp 175 2,920
CH Energy Group Inc 267 9,061
Cleco Corporation 357 11,960
CMP Group Inc 515 15,096
Conectiv Inc 1,438 22,379
CT Communications Inc 137 5,026
El Paso Electric Company* 871 9,744
Empire District Electric Co 277 6,111
Energen Corp 429 9,358
Energynorth Inc 52 3,081
E'town Corp 139 9,235
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
66
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
UTILITIES - 4.00% (CONTINUED)
Hawaiian Electric Industries 514 $ 16,866
Hickory Tech Corp 219 2,669
IDACORP Inc 598 19,286
Intermedia Communications* 781 23,235
Kansas City Power & Light 984 22,140
Laclede Gas Co 300 5,775
Madison Gas & Electric 257 5,076
MDU Resources Group Inc 972 21,020
Minnesota Power & Light 1,175 20,342
New Jersey Resources 280 10,658
Northwest Natural Gas Co 400 8,950
Northwestern Corporation 367 8,487
Nui Corp 206 5,562
Oge Energy Corp 1,238 22,903
Oneok Inc 464 12,035
Otter Tail Power Co 379 7,959
People's Energy Corporation 561 18,162
Philadelphia Suburban Corp 546 11,193
Piedmont Natural Gas 493 13,095
Primus Telecomm Group* 398 9,900
Providence Energy Corp 97 3,929
Public Service Comp of New Mexico 555 8,568
RGS Energy Group Inc 564 12,549
Semco Energy 285 3,705
Sierra Pacific Resources 1,247 15,665
SJW Corp 32 3,804
South Jersey Industries 180 4,680
Southern Union Company* 495 7,827
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------
UTILITIES - 4.00% (CONTINUED)
Southwest Gas 497 $ 8,698
Southwestern Energy Company 398 2,488
UGI Corp 432 8,856
Unisource Energy Corp Holdings Co 485 7,275
United Illuminating 227 9,931
United Water Resources Inc 440 15,345
Vectren Corp 974 16,802
Viatel Inc* 795 22,705
Washington Gas Light Co 739 17,782
Western Resources Inc 1,091 16,911
WPS Resources Corp 421 12,656
----------
633,620
----------
Total Common Stocks
(cost $14,995,813) 15,312,619
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
------------------
UNIT INVESTMENT TRUST - .95%
S&P Mid-Cap 400 Depositary Receipts $1,626 $ 149,841
-----------
Total Unit Investment Trust
(cost $144,308) 149,841
-----------
TOTAL INVESTMENTS - 97.69%
(cost $15,140,121)(1) 15,462,460
-----------
OTHER ASSETS AND LIABILITIES - 2.31% 365,552
-----------
TOTAL NET ASSETS - 100% $15,828,012
===========
</TABLE>
----------
* Non-income producing
(1) Represents cost for income tax purposes which is substantially the same for
financial reporting Purposes. Gross unrealized appreciation and
depreciation of securities as of June 30, 2000 was $1,030,325 and
($707,986) respectively.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
67
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Summit Mutual Funds, Inc., (the Fund), formerly known as Carillon Fund, Inc., is
registered under the Investment Company Act of 1940, as amended, as a no-load,
diversified, open-end management investment company. The Fund is offered in two
series, the Pinnacle Series and the Apex Series. The results of the Pinnacle
Series are presented here. The shares of the Pinnacle Series are sold only to
The Union Central Life Insurance Company (Union Central) and its separate
accounts to fund the benefits under certain variable insurance products. The
Fund's shares are offered in seven different portfolios - Zenith Portfolio
(formerly known as the Equity Portfolio), Bond Portfolio, S&P 500 Index
Portfolio, S&P MidCap 400 Index Portfolio, Balanced Index Portfolio, Nasdaq-100
Index Portfolio, and Russell 2000 Small Cap Index Portfolio (individually
"Portfolio"). The Zenith Portfolio seeks long-term appreciation of capital by
investing primarily in common stocks and other equity securities. The Bond
Portfolio seeks a high level of current income as is consistent with reasonable
investment risk by investing primarily in long-term, fixed-income,
investment-grade corporate bonds. The S&P 500 Index Portfolio seeks investment
results that correspond to the total return performance of U.S. common stocks,
as represented in the Standard & Poor's 500 Index. The S&P MidCap 400 Index
Portfolio 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 Balanced Index Portfolio 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. The Nasdaq-100 Index Portfolio seeks investment results that correspond
to the investment performance of U.S. common stocks, as represented by the
Nasdaq-100 Index. The Russell 2000 Small Cap Index Portfolio seeks investment
results that correspond to the investment performance of U.S. common stocks, as
represented by the Russell 2000 Index.
The preparation of financial statements in conformity with generally accepted
accounting principles 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 Portfolio, 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 with a remaining maturity of 60
days or less held in each Portfolio 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 - It is the intent of the Fund 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.
Regulated investment companies owned by the segregated asset accounts of a life
insurance company, held in connection with variable annuity contracts, are
exempt from excise tax on undistributed income. Therefore, no provision for
income or excise taxes has been recorded. The Bond Portfolio has a capital loss
carry forward of $334,560 which can be carried forward until 2006. The Zenith
Portfolio and Balanced Index Portfolio have a capital loss carry forward of
$15,358,910 and $861,163 which can be carried forward until 2007.
--------------------------------------------------------------------------------
68
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
DISTRIBUTIONS - Distributions from net investment income in all Portfolios
generally are declared and paid quarterly. Net realized capital gains are
distributed periodically, no less frequently than annually. Distributions are
recorded on the ex-dividend date. All distributions are reinvested in additional
shares of the respective Portfolio at the net asset value per share.
The amount of distributions are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
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 the Fund are charged to each Portfolio based on
the ratio of the net assets of each Portfolio to the combined net assets of the
Fund. Nonallocable expenses are charged to each Portfolio based on specific
identification.
FOREIGN CURRENCY - The Funds' accounting records are maintained in U.S. dollars.
All Portfolios may purchase foreign securities within certain limitations set
forth in theProspectus. Amounts denominated in or expected to settle in foreign
currencies are translated into U.S. dollars at the spot rate at the close of the
London Market. The Fund does not isolate that portion of the results of
operations resulting from changes in foreign exchange rates on investments from
the underlying fluctuation in the securities resulting from market prices. All
are included in net realized and unrealized gain or loss for investments.
NOTE 2 - TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEES - The Fund pays investment advisory fees to Summit
Investment Partners, Inc. (the Adviser), formerly known as Carillon
Advisers, Inc., under terms of an Investment Advisory Agreement (the Agreement).
Certain officers and directors of the Adviser are affiliated with the Fund. The
Fund pays the Adviser, as full compensation for all services and facilities
furnished, a monthly fee computed separately for each Portfolio on a daily
basis, at an annual rate, as follows:
(a) for the Zenith Portfolio - .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 net asset value:
(b) for the Bond Portfolio - .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
net asset value.
(c) for the S & P 500 Index Portfolio - .30% of the current net asset
value.
(d) for the S & P MidCap 400 Index Portfolio - .30% of the current net
asset value.
(e) for the Balanced Index Portfolio - .30% of the current net asset
value.
(f) for the Nasdaq-100 Index Portfolio - .35% of the current net asset
value.
(g) for the Russell 2000 Small Cap Index Portfolio - .35% of the current
net asset value.
The Agreement provides that if the total operating expenses of the 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 average
daily net assets of the Zenith or Bond Portfolios, the Adviser will reimburse
the Fund for such excess, up to the amount of the advisory fee for that year.
The Adviser has agreed to pay any other expenses of the S&P 500 Index Portfolio,
the S&P MidCap 400 Index Portfolio, Balanced Index Portfolio, and the Nasdaq-100
Index Portfolio, other than the advisory fee for that Portfolio, to the extent
that such expenses exceed 0.30% of its average annual net assets. The Adviser
will pay any expenses of the Russell 2000 Small Cap Index Portfolio, other than
the advisory fee for that Portfolio, to the extent that such expenses exceed
0.40% of that Portfolio's net asset. The Adviser has agreed to reduce its fee
from those shown above for a period of one year from May 1, 2000 by .03, .08 and
.20 percentage points for the S&P 500 Index Portfolio, the Zenith Portfolio, and
--------------------------------------------------------------------------------
69
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - TRANSACTIONS WITH AFFILIATES (CONTINUED)
the Bond Portfolio, respectively. The Adviser may not revise or cancel these
waivers during the one year period. As a result, for the period ended June 30,
2000, the Adviser waived the Zenith Portfolio $9,583, Bond Portfolio $15,073,
and S&P 500 Index Portfolio $8,944, and the Adviser reimbursed the S&P MidCap
400 Index Porfolio $11,676, Balanced Index Portfolio $19,170, Nasdaq-100 Index
Portfolio $4,839 and the Russell 2000 Small Cap Index Portfolio $12,589.
In addition to providing investment advisory services, the Adviser is
responsible for providing certain administrative functions to the Fund. The
Adviser has entered into an Administration Agreement with Carillon
Investments, Inc. (the Distributor) under which the Distributor furnishes
substantially all of such services for an annual fee of .20% of the Fund's
average net assets for the Zenith, and Bond Portfolios, and .05% of the Fund's
average net assets for the S & P 500 Index Portfolio, S&P MidCap 400 Index
Portfolio, Nasdaq-100 Index Portfolio, and Russell 2000 Small Cap Index
Portfolio. The fee is borne by the Adviser, not the Fund.
Summit Investment Partners, Inc. and Carillon Investments, Inc. are wholly-owned
subsidiaries of Union Central.
DIRECTORS' FEES - Each director who is not affiliated with the Adviser receives
fees from the Fund 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 Scudder Money Market Fund.
FORMATION OF THE APEX SERIES - On April 1, 2000, Union Central redeemed shares
in the Bond, Zenith, S&P 500 Index, S&P MidCap 400 Index, Balanced Index, and
Lehman Aggregate Bond Index Portfolios that were owned by certain of its exempt
separate accounts. As part of the transaction forming the Apex Series, all of
the net assets of the Lehman Aggregate Bond Index Portfolio were transferred in
total to the Apex Series and the operations of the Pinnacle Series of this
Portfolio were suspended. The proceeds for these redemptions were invested in
shares of Funds with the same investment objectives in the newly formed Apex
Series of Summit Mutual Funds, Inc.
NOTE 3 - FUTURES CONTRACTS
S&P 500 Index Portfolio, S&P MidCap 400 Index Portfolio, Balanced Index
Portfolio, Nasdaq-100 Index Portfolio, and Russell 2000 Small Cap Index
Portfolio (collectively, the Index Portfolios) may enter into futures contracts
that relate to securities in which it may directly invest and indices comprised
of such securities and may purchase and write call and put options on such
contracts. The Index Portfolios may invest up to 20% of their assets in such
futures and/or options, except that until each Portfolio reaches $25 million, it
may invest up to 100% in such futures and/or options. These contracts provide
for the sale of a specified quantity of a financial instrument at a fixed price
at a future date. When the Index Portfolios 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 Portfolios 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 Portfolios 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 Index Portfolios is that the change in the value in the
underlying securities may not correlate to the value of the contracts.
--------------------------------------------------------------------------------
70
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
NOTES TO FINANCIAL STATEMENTS
NOTE 4 - SUMMARY OF PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of securities for the six months ended June 30, 2000
excluding short-term obligations, follow:
<TABLE>
<CAPTION>
ZENITH PORTFOLIO BOND PORTFOLIO S&P 500 INDEX S&P MIDCAP 400 INDEX
---------------- -------------- ------------- --------------------
<S> <C> <C> <C> <C>
Total Cost of Purchases of:
Common Stocks $ 36,418,565 $ -- $ 30,074,179 $13,055,692
U.S. Government
Securities -- 9,106,713 -- --
Corporate Bonds -- 9,262,310 -- --
------------ ----------- ------------ -----------
$ 36,418,565 $18,369,023 $ 30,074,179 $13,055,692
============ =========== ============ ===========
Total Proceeds from Sales of:
Common Stocks $118,131,993 $ -- $170,398,571 $21,203,907
U.S. Government
Securities -- 37,896,423 -- --
Corporate Bonds -- 53,577,782 -- --
------------ ----------- ------------ -----------
$118,131,993 $91,474,205 $170,398,571 $21,203,907
============ =========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
BALANCED INDEX NASDAQ-100 INDEX RUSSELL 2000 SMALL CAP INDEX
-------------- ---------------- ----------------------------
<S> <C> <C> <C>
Total Cost of Purchases of:
Common Stocks $ 448,919 $10,035,914 $ 20,220,814
U.S. Government Securities 451,012 -- --
Corporate Bonds -- -- --
------------ ----------- ------------
$ 899,931 $10,035,914 $ 20,220,814
============ =========== ============
Total Proceeds from Sales of:
Common Stocks $ 25,777,764 $ 381,154 $ 5,843,995
U.S. Government Securities 10,000,171 -- --
Corporate Bonds 4,179,094 -- --
------------ ----------- ------------
$ 39,957,028 $ 381,154 $ 5,843,995
============ =========== ============
</TABLE>
--------------------------------------------------------------------------------
71
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
NOTES TO FINANCIAL STATEMENTS
NOTE 4 - SUMMARY OF PURCHASES AND SALES OF INVESTMENTS (CONTINUED)
The following represents proceeds from the sale of Portfolio securities related
to the redemption of shares in the formation of the Apex Series, excluding
short-term obligations:
<TABLE>
<CAPTION>
ZENITH PORTFOLIO BOND PORTFOLIO S&P 500 INDEX S&P MIDCAP 400 INDEX
---------------- -------------- ------------- --------------------
<S> <C> <C> <C> <C>
Common Stocks $54,418,129 $ -- $163,696,296 $18,222,251
U.S. Government Securities -- 29,006,489 -- --
Corporate Bonds -- 40,700,896 -- --
----------- ----------- ------------ -----------
$54,418,129 $69,707,385 $163,696,296 $18,222,251
=========== =========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
BALANCED INDEX
--------------
<S> <C>
Common Stocks $21,496,741
U.S. Government Securities 2,877,551
Corporate Bonds 10,944,260
-----------
$35,318,552
===========
</TABLE>
--------------------------------------------------------------------------------
72
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE SERIES
NOTES TO FINANCIAL HIGHLIGHTS
NOTE 5 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding throughout the
period.
<TABLE>
<CAPTION>
ZENITH PORTFOLIO
SIX MONTHS ENDED
JUNE 30,
(UNAUDITED) YEAR ENDED DECEMBER 31,
---------------- ------------------------------------------------
2000 1999 1998 1997 1996 1995
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of period $ 12.62 $ 14.89 $ 20.35 $ 19.45 $ 16.54 $ 14.30
------- -------- -------- -------- -------- --------
Investment Activities:
Net investment income .12 .10 .25 .23 .29 .24
Net realized and
unrealized
gains/(losses) .61 (.05) (2.80) 3.23 3.61 3.36
------- -------- -------- -------- -------- --------
Total from Investment
Activities .73 .05 (2.55) 3.46 3.90 3.60
------- -------- -------- -------- -------- --------
Distributions:
Net investment income (.19) (.12) (.23) (.27) (.27) (.23)
Net realized gains -- (2.20) (2.68) (2.29) (.72) (1.13)
------- -------- -------- -------- -------- --------
Total Distributions (.19) (2.32) (2.91) (2.56) (.99) (1.36)
------- -------- -------- -------- -------- --------
Net Asset Value,
End of period $ 13.16 $ 12.62 $ 14.89 $ 20.35 $ 19.45 $ 16.54
======= ======== ======== ======== ======== ========
Total Return 5.85% 2.05% (15.31%) 20.56% 24.52% 26.96%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to
Average Net Assets(2) .76%(1) .69% .62% .62% .64% .66%
Ratio of Net Investment
Income to Average Net
Assets(2) 1.33%(1) .67% 1.41% 1.23% 1.66% 1.73%
Portfolio Turnover Rate 91.35%(1) 86.47% 62.50% 57.03% 52.53% 34.33%
Net Assets, End of Period
(000's) $47,178 $124,444 $248,783 $335,627 $288,124 $219,563
</TABLE>
---------
(1) THE RATIOS ARE ANNUALIZED.
(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 .02%
FOR THE PERIOD ENDED JUNE 30, 2000, HAD THE ADVISER NOT WAIVED A PORTION OF
ITS FEES.
--------------------------------------------------------------------------------
73
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE 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>
BOND PORTFOLIO
SIX MONTHS ENDED
JUNE 30,
(UNAUDITED) YEAR ENDED DECEMBER 31,
---------------- --------------------------------------------
2000 1999 1998 1997 1996 1995
---------------- ------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 10.36 $ 11.13 $ 11.29 $ 10.91 $ 11.07 $ 10.04
------- ------- -------- ------- ------- -------
Investment Activities:
Net investment income .72 .72 .77 .79 .79 .88
Net realized and
unrealized
gains/(losses) (.51) (.84) (.05) .37 (.04) .98
------- ------- -------- ------- ------- -------
Total from Investment
Activities .21 (.12) .72 1.16 .75 1.86
------- ------- -------- ------- ------- -------
Distributions:
Net investment income (1.55) (.65) (.76) (.72) (.87) (.83)
In excess of net
investment income -- -- -- -- (.04) --
Net realized gains -- -- (.12) (.06) -- --
------- ------- -------- ------- ------- -------
Total Distributions (1.55) (.65) (.88) (.78) (.91) (.83)
------- ------- -------- ------- ------- -------
Net Asset Value,
End of period $ 9.02 $ 10.36 $ 11.13 $ 11.29 $ 10.91 $ 11.07
======= ======= ======== ======= ======= =======
Total Return 2.40% (1.11%) 6.52% 11.02% 7.19% 19.03%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to
Average Net Assets(2) .66%(1) .60% .58% .60% .62% .65%.
Ratio of Net Investment
Income to Average Net
Assets(2) 6.82%(1) 6.62% 6.84% 7.15% 7.24% 7.43%
Portfolio Turnover Rate 59.85%(1) 56.07% 67.57% 113.41% 202.44% 111.01%
Net Assets, End of Period
(000's) $21,860 $98,428 $113,762 $99,892 $85,634 $73,568
</TABLE>
---------
(1) THE RATIOS ARE ANNUALIZED.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSET WOULD HAVE DECREASED BY .05% FOR
THE PERIOD ENDED JUNE 30, 2000, HAD THE ADVISER NOT WAIVED A PORTION OF ITS
FEES.
--------------------------------------------------------------------------------
74
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE 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 PORTFOLIO
SIX MONTHS ENDED
JUNE 30,
(UNAUDITED) YEAR ENDED DECEMBER 31,
---------------- ------------------------------------
2000 1999 1998 1997 1996(1)
---------------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 23.12 $ 19.49 $ 15.74 $ 12.13 $ 10.00
-------- -------- -------- ------- -------
Investment Activities:
Net investment income .12 .21 .20 .20 .20
Net realized and
unrealized
gains/(losses) (.27) 3.75 4.21 3.72 2.12
-------- -------- -------- ------- -------
Total from Investment
Activities (.15) 3.96 4.41 3.92 2.32
-------- -------- -------- ------- -------
Distributions:
Net investment income (.25) (.19) (.20) (.21) (.19)
Net realized gains (.14) (.14) (.46) (.10) --
-------- -------- -------- ------- -------
Total Distributions (.39) (.33) (.66) (.31) (.19)
-------- -------- -------- ------- -------
Net Asset Value,
End of period $ 22.58 $ 23.12 $ 19.49 $ 15.74 $ 12.13
======== ======== ======== ======= =======
Total Return (.56%) 20.52% 28.54% 32.72% 23.37%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to
Average Net Assets(2) .41%(3) .39% .43% .50% .59%(2)
Ratio of Net Investment
Income to Average Net
Assets(2) .82%(3) 1.10% 1.25% 1.48% 2.14%(2)
Portfolio Turnover Rate 28.94%(3) 3.45% 2.64% 9.06% 1.09%
Net Assets, End of Period
(000's) $127,549 $284,132 131,345 $55,595 $29,205
</TABLE>
---------
(1) THE PORTFOLIO COMMENCED OPERATION ON DECEMBER 29, 1995. THE FINANCIAL
HIGHLIGHTS TABLE FOR THE PERIOD ENDING DECEMBER 31, 1995 IS NOT PRESENTED
BECAUSE THE ACTIVITY FOR THE PERIOD DID NOT ROUND TO $0.01 IN ANY CATEGORY
OF THE RECONCILIATION OF BEGINNING TO ENDING NET ASSET VALUE PER SHARE. THE
RATIOS AND TOTAL WERE ALL LESS THAN 0.01%. THE NET ASSET AT DECEMBER 31,
1995 WERE $305,148.
(2) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSET WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY .01%
AND .25% FOR THE PERIODS ENDED JUNE 30, 2000 AND DECEMBER 31, 1996, HAD THE
ADVISER NOT WAIVED A PORTION OF ITS FEE.
(3) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
75
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE 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 MIDCAP 400 INDEX PORTFOLIO
SIX MONTHS ENDED
TO JUNE 30, 2000 PERIOD FROM MAY 3, 1999
(UNAUDITED) TO DECEMBER 31, 1999
----------------- ------------------------
<S> <C> <C>
Net Asset Value,
Beginning of Period $ 11.04 $ 10.00
------- -------
Investment Activities:
Net investment income .13 .10
Net realized and unrealized
gains/(losses) .71 1.01
------- -------
Total from Investment Activities .84 1.11
------- -------
Distributions:
Net investment income (.26) (.07)
Net realized gains (.53) --
------- -------
Total Distributions (.79) (.07)
------- -------
Net Asset Value,
End of period $ 11.09 $ 11.04
======= =======
Total Return 8.00% 11.14%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net
Assets(1) .56%(2) .60%(2)
Ratio of Net Investment Income to
Average Net Assets(1) 1.69%(2) 1.69%(2)
Portfolio Turnover Rate 184.65%(2) 47.55%(2)
Net Assets, End of Period (000's) $11,177 $23,963
</TABLE>
---------
(1) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY .13%
AND .09% FOR THE PERIODS ENDED JUNE 30, 2000 AND DECEMBER 31, 1999, HAD THE
ADVISER NOT REIMBURSED EXPENSES.
(2) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
76
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE 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>
BALANCED INDEX PORTFOLIO
SIX MONTHS ENDED
TO JUNE 30, 2000 PERIOD FROM MAY 3, 1999
(UNAUDITED) TO DECEMBER 31, 1999
----------------- ------------------------
<S> <C> <C>
Net Asset Value,
Beginning of Period $ 10.41 $ 10.00
------- -------
Investment Activities:
Net investment income .26 .18
Net realized and unrealized
gains/(losses) (.14) .34
------- -------
Total from Investment Activities .12 .52
------- -------
Distributions:
Net investment income (.66) (.11)
Net realized gains -- --
------- -------
Total Distributions (.66) (.11)
------- -------
Net Asset Value,
End of period $ 9.87 $ 10.41
======= =======
Total Return 1.39% 5.31%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net
Assets(1) .53%(2) .47%(2)
Ratio of Net Investment Income to
Average Net Assets(1) 3.02%(2) 2.94%(2)
Portfolio Turnover Rate 5.21%(2) 141.58%(2)
Net Assets, End of Period (000's) $15,588 $55,708
</TABLE>
---------
(1) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY .11%
AND .03% FOR THE PERIODS ENDED JUNE 30, 2000, AND DECEMBER 31, 1999, HAD
THE ADVISER NOT REIMBURSED EXPENSES.
(2) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
77
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE 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>
NASDAQ-100 INDEX PORTFOLIO
PERIOD FROM APRIL 26, 2000
TO JUNE 30, 2000
(UNAUDITED)
-----------------------------------
<S> <C>
Net Asset Value,
Beginning of Period $10.00
------
Investment Activities:
Net investment loss (.01)
Net realized and unrealized gains/(losses) .74
------
Total from Investment Activities .73
------
Distributions:
Net investment income --
Net realized gains --
------
Total Distributions --
------
Net Asset Value,
End of period $10.73
======
Total Return 7.30%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(1) .76%(2)
Ratio of Net Investment Income to Average Net
Assets(1) (.36)%(2)
Portfolio Turnover Rate 21.22%(2)
Net Assets, End of Period (000's) $10,869
</TABLE>
---------
(1) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY .27%
FOR THE PERIOD ENDED JUNE 30, 2000, HAD THE ADVISER NOT REIMBURSED
EXPENSES.
(2) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
78
<PAGE>
SUMMIT MUTUAL FUNDS, INC. - PINNACLE 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>
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO
PERIOD FROM APRIL 26, 2000
TO JUNE 30, 2000
(UNAUDITED)
-----------------------------------------------
<S> <C>
Net Asset Value,
Beginning of Period $10.00
------
Investment Activities:
Net investment income .02
Net realized and unrealized gains/(losses) .63
------
Total from Investment Activities 10.65
------
Distributions:
Net investment income --
Net realized gains --
------
Total Distributions --
------
Net Asset Value,
End of period $10.65
======
Total Return 6.50%
RATIOS/SUPPLEMENTAL DATA:
Ratio of Expenses to Average Net Assets(1) .75%(2)
Ratio of Net Investment Income to Average Net
Assets(1) .95%(2)
Portfolio Turnover Rate 217.30%(3)
Net Assets, End of Period (000's) $15,828
</TABLE>
---------
(1) THE RATIOS OF NET EXPENSES TO AVERAGE NET ASSETS WOULD HAVE INCREASED AND
NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE DECREASED BY .47%
FOR THE PERIOD ENDED JUNE 30, 2000, HAD THE ADVISER NOT REIMBURSED
EXPENSES.
(2) THE RATIOS ARE ANNUALIZED.
--------------------------------------------------------------------------------
79
<PAGE>
The Summit Pinnacle Series is distributed to The Union
Central Life Insurance Company's Separate Accounts available
in the 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. For
more complete information about the Summit Mutual Funds'
Apex Series, 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. 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
Please visit our Website at www.summitfunds.com to learn
more about the Summit Mutual Funds.
SMFI 231PINNACLE 6/00 [GRAPHIC] SUMMIT
------
MUTUAL
FUNDS
