<PAGE>
Message From The Chairman
- -------------------------------------------------------------------------------
Fellow Shareholders:
The High Yield Market
Investor sentiment in 1999 was influenced by several negative factors,
including a hangover from the late summer 1998 meltdown, rising interest
rates, higher default rates, Y2K anxiety, and skepticism over historically
high equity valuations.
The Asian crisis and the default by Russia in 1998 drove bond investors to
flee to quality as U.S. treasuries posted returns exceeding both corporate and
high yield securities. While the Federal Reserve Board (the Fed) lowered
interest rates in 1998, this policy was reversed in 1999 as continued domestic
inflationary concerns and stability overseas allowed the Fed to raise rates
three times beginning in June to contain economic expansion and avoid
inflation. The plight of the high yield market closely followed the sentiments
of our U.S. economy.
Although the high yield market struggled through its second consecutive year
of sub-coupon returns (the first time that this has occurred in a non-
recessionary period), as interest rate concerns continue to loom over the
market, default rates have increased, and new issuance has subsided, several
fundamental changes seem poised to create upward momentum for the high yield
investor in 2000. Investors should not lose sight of the opportunities that
the high yield market has to offer due to positive event risk dynamics,
subsiding Y2K-related concerns, larger capital allocations to this asset
class, and strong operating momentum expected in both the high yield and
equity markets. In our opinion, the U.S. economic growth should slow
(remaining, however, still robust at 2.5-3.0%) tempered by an increase in
activity in nearly all corners of the globe.
We believe the aggregate impact of all these opportunities leads to the
expectation for a total return in the high yield market of between 8% and 12%
for the year. Such performance should be in line with other asset classes such
as stocks, and outperform other fixed income classes.
Summit High Yield Fund Performance/1/
The Summit High Yield Fund produced a total return for the six- and 12-month
periods ended November 30, 1999 of -2.27% and -1.55% (Class A Shares without
sales charge)+ versus a total return of -1.09% and 0.81% for the Salomon
Brothers High Yield Market Index/2/. Additionally, for calendar year 1999, the
Summit High Yield Fund outperformed the Salomon Brothers High Yield Market
Index, producing a total return of 2.61% (Class A Shares without sales
charge)+ versus 1.73% for the Salomon Brothers' index.
- --------
+ For the Summit High Yield Fund Class A Shares with the maximum sales charge
of 4.50%, the total return for the six- month period ended November 30, 1999
would have been -6.63%. See the table on page 3 for additional performance
information.
/1/ Although the Fund's yield and total return may be higher from time to time
than that of fixed income funds that purchase higher-rated securities, the
potentially higher yield and total return is a function of the greater risk
that the Fund's share price will decline as described in the prospectus.
/2/ The Summit High Yield Fund's performance is measured against the Salomon
High Yield Market Index, a broad-based index of the high-yield bond market.
The index is unmanaged and does not reflect the deduction of expenses
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Summit High Yield Fund reflects the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in the underlying securities.
-1-
<PAGE>
Message From The Chairman, Continued
- -------------------------------------------------------------------------------
Emerging Fixed Income Markets
What a year! Emerging market fixed income investors used 1999 to consolidate
recovery from a string of 1998 external disasters--Asia, Russia, Brazil--and
finished the year as the best performing fixed income class with annualized
returns in excess of 20%.
The major issues that confronted the emerging markets in 1999 were Ecuador's
default, questions about the International Monetary Fund's evolving role and
three U.S. interest rate hikes raised questions about sovereign
creditworthiness.
A supportive global economic outlook, a recovery in commodity prices, reduced
international investor leverage, and the resolution of Y2K issues support the
thesis that it is very likely that the emerging market fixed income class will
outperform other asset classes in 2000.
Summit Emerging Markets Bond Fund Performance/3/
The Summit Emerging Markets Bond Fund underperformed its benchmark index for
the six- month period ended November 30, 1999, but outperformed the J.P.
Morgan Emerging Market Bond Index+/4/ (the EMBI+) in the twelve months ended
November 30, 1999. For the recent six-month period, the Fund produced a total
return of 7.71% (Class A Shares without sales charge)++ versus a total return
of 12.91% for the EMBI+. In the twelve months ended November 30, 1999, the
Fund produced a total return of 16.93% (Class A Shares without sales charge)++
slightly higher than the EMBI+ total return of 16.52%. Additionally,
throughout the twelve months ended December 31, 1999, the Fund total return
was 22.81% (Class A Shares without sales change)++, while the EMBI+ total
return was 25.97%.
Thank you for the trust and confidence you have placed in our portfolio
management team. We strive to provide superior performance to our
shareholders.
Sincerely,
/s/ Steven R. Sutermeister
Steven R. Sutermeister
Chairman
- --------
++ For the Summit Emerging Markets Bond Fund Class A Shares with the maximum
sales charge of 4.50%, the total return for the six-month period ended
November 30, 1999 would have been 2.90%. See the table on page 3 for
additional performance information.
/3/ International investing involves increased risk and volatility. Investing in
emerging markets securities involves unique risks such as currency risks,
political, social and economic risks, credit risks and liquidity risk, as
described in the prospectus.
/4/ The Summit Emerging Markets Bond Fund is measured against the EMBI+, an
index which tracks total returns for traded external debt instruments in the
emerging markets. The instruments include external-currency-denominated
Brady bonds, loans and Eurobonds, as well as U.S. dollar local markets. The
index is unmanaged and does not reflect the deduction of expenses associated
with a mutual fund, such as investment management and fund accounting fees.
The performance of the Summit Emerging Markets Bond Fund reflects the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in the underlying securities.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate so that an investor's shares when redeemed may be
worth more or less than the original cost.
During the period, investment advisory and administration fees were
voluntarily reduced, resulting in a higher total return than would have
occurred if full fees had been charged.
The Summit High Yield Fund and Summit Emerging Markets Bond Fund are
distributed by BISYS Fund Services. This report is authorized for distribution
only when preceded or accompanied by a prospectus. Read it carefully before
investing.
-2-
<PAGE>
- -------------------------------------------------------------------
Summit High Yield Fund
Average Annual Total Returns
- -------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
Inception
Period Ended 11/30/99 1 Year 5 Year (6/27/94)
- -------------------------------------------------
<S> <C> <C> <C>
A Shares w/out load -1.55% 10.14% 9.36%
- -------------------------------------------------
A Shares w/load* -5.94% 9.12% 8.43%
- -------------------------------------------------
Period Ended 12/31/99
- -------------------------------------------------
A Shares w/out load 2.61% 10.65% 9.71%
- -------------------------------------------------
A Shares w/load* -1.99% 9.65% 8.80%
- -------------------------------------------------
</TABLE>
*Reflects the maximum sales charge of 4.50%.
- -------------------------------------------------------------------
Summit Emerging Markets Bond Fund
Average Annual Total Returns
- -------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
Inception
Period Ended 11/30/99 1 Year (12/31/97)
- -------------------------------------------
<S> <C> <C>
A Shares w/out load 16.93% -3.42%
- -------------------------------------------
A Shares w/load* 11.65% -5.71%
- -------------------------------------------
Period Ended 12/31/99
- -------------------------------------------
A Shares w/out load 22.81% -2.43%
- -------------------------------------------
A Shares w/load* 17.34% -4.64%
- -------------------------------------------
</TABLE>
*Reflects the maximum sales charge of 4.50%.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate so that an investor's shares when redeemed may be
worth more or less than the original cost.
-3-
<PAGE>
Table of Contents
Message From the Chairman
Page 1
Statements of Assets and Liabilities
Page 5
Statements of Operations
Page 6
Statements of Changes in Net Assets
Page 7
Schedules of Portfolio Investments
Page 8
Notes to Financial Statements
Page 13
Financial Highlights
Page 19
-4-
<PAGE>
SUMMIT INVESTMENT TRUST
Statements of Assets and Liabilities
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
High Yield Emerging Markets
Fund Bond Fund
----------- ----------------
<S> <C> <C>
ASSETS:
Investments, at value (cost $43,852,973 and
$27,526,733, respectively)....................... $37,318,948 $22,757,109
Interest receivable.............................. 1,076,242 719,879
----------- -----------
Total Assets................................... 38,395,190 23,476,988
----------- -----------
LIABILITIES:
Payable for capital shares redeemed.............. 7,724 --
Accrued expenses and other payables:
Investment advisory fees........................ 13,520 17,110
Administration fees............................. 1,410 862
12b-1 fees (A Shares)........................... 6,924 5,016
12b-1 fees (B Shares)........................... 443 --
Shareholder service fees........................ 472 --
Other........................................... 91,264 5,286
----------- -----------
Total Liabilities.............................. 121,757 28,274
----------- -----------
NET ASSETS:
Capital.......................................... 51,398,928 29,838,431
Undistributed net investment income.............. 53,413 (34,425)
Accumulated undistributed net realized losses
from investments and foreign currency
transactions.................................... (6,644,883) (1,585,668)
Net unrealized depreciation on investments and
assets and liabilities denominated in foreign
currencies...................................... (6,534,025) (4,769,624)
----------- -----------
Net Assets..................................... $38,273,433 $23,448,714
=========== ===========
Net Assets:
A Shares........................................ $37,914,925 $23,447,280
B Shares........................................ 358,508 1,434
Outstanding units of beneficial interest
(shares):
A Shares........................................ 4,642,357 3,151,922
B Shares........................................ 43,974 193
Net Asset Value:
A Shares redemption price per share............. $ 8.17 $ 7.44
=========== ===========
Maximum sales charge............................ 4.50% 4.50%
=========== ===========
Maximum offering price (100%/100%--maximum sales
charge) of net asset value per share (adjusted
to the nearest cent)........................... $ 8.55 $ 7.79
=========== ===========
B Shares offering price per share (a)........... $ 8.15 $ 7.43
=========== ===========
</TABLE>
- --------
(a) Redemption price for B Shares varies based on length of time shares are
held.
See notes to financial statements.
-5-
<PAGE>
SUMMIT INVESTMENT TRUST
Statements of Operations
For the Six Months Ended November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Emerging Markets
High Yield Fund Bond Fund
--------------- ----------------
<S> <C> <C>
INVESTMENT INCOME:
Interest income............................... $ 2,463,927 $1,344,030
Dividend income............................... 12,753 3,893
----------- ----------
Total Income................................ 2,476,680 1,347,923
----------- ----------
EXPENSES:
Investment advisory fees...................... 81,988 84,902
Administration fees........................... 43,113 22,641
12b-1 fees (A Shares)......................... 49,157 28,299
12b-1 fees (B Shares)......................... 1,342 4
Shareholder service fees (B Shares)........... 460 2
Audit fees.................................... 7,468 3,871
Custodian fees................................ 15,734 1,913
Accounting fees............................... 19,621 27,474
Legal fees.................................... 44,677 16,324
Transfer agent fees........................... 39,883 21,486
Trustees' fees................................ 10,859 4,660
Miscellaneous expenses........................ 52,927 20,770
----------- ----------
Total expenses before voluntary reductions.. 367,229 232,346
Expenses voluntarily reduced................ (16,924) (5,660)
----------- ----------
Net Expenses................................ 350,305 226,686
----------- ----------
Net Investment Income......................... 2,126,375 1,121,237
----------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) ON
INVESTMENTS:
Net realized losses on investments and foreign
currency transactions......................... (2,541,480) (472,334)
Net change in unrealized depreciation on
investments and assets and liabilities
denominated in foreign currencies............. (747,817) 1,039,567
----------- ----------
Net realized/unrealized gains (losses) on
investments................................... (3,289,297) 567,233
----------- ----------
Change in net assets resulting from
operations.................................... $(1,162,922) $1,688,470
=========== ==========
</TABLE>
See notes to financial statements.
-6-
<PAGE>
SUMMIT INVESTMENT TRUST
Statements of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
High Yield Fund Emerging Markets Bond Fund
------------------------------ ------------------------------
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Period Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 2,126,375 $ 5,418,356 $ 1,121,237 $ 2,795,743
Net realized gains
(losses) on investment
and foreign currency
transactions.......... (2,541,480) (3,965,380) (472,334) (1,113,310)
Net change in
unrealized
depreciation on
investments and assets
and liabilities
denominated in foreign
currencies............ (747,817) (6,212,023) 1,039,567 (5,487,784)
----------- ----------- ----------- -----------
Change in net assets
resulting from
operations............ (1,162,922) (4,759,047) 1,688,470 (3,805,351)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
A Shares.............. (2,118,449) (5,502,063) (1,181,964) (2,805,873)
B Shares.............. (17,044) (9,484)(a) (66) (110)(a)
Institutional Shares.. -- -- -- --
----------- ----------- ----------- -----------
(2,135,493) (5,511,547) (1,182,030) (2,805,983)
----------- ----------- ----------- -----------
Net realized gains
A Shares.............. -- (1,598,270) -- (113,762)
B Shares.............. -- (873) -- (7)
----------- ----------- ----------- -----------
-- (1,599,143) -- (113,769)
----------- ----------- ----------- -----------
Change in net assets
from shareholder
distributions.......... (2,135,493) (7,110,690) (1,182,030) (2,919,752)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 757,683 29,367,573 848,098 864,623
Dividends reinvested... 1,437,752 6,754,211 740,987 2,917,885
Cost of shares
redeemed............... (8,321,468) (32,197,576) (885,060) (698,624)
----------- ----------- ----------- -----------
Change in net assets
from capital
transactions........... (6,126,033) 3,924,208 704,025 3,083,884
----------- ----------- ----------- -----------
Change in net assets.... (9,424,448) (7,945,529) 1,210,465 (3,641,219)
NET ASSETS:
Beginning of period.... 47,697,881 55,643,410 22,238,249 25,879,468
----------- ----------- ----------- -----------
End of period.......... $38,273,433 $47,697,881 $23,448,714 $22,238,249
=========== =========== =========== ===========
</TABLE>
- --------
(a) Period from commencement of operations (October 8, 1998).
See notes to financial statements.
-7-
<PAGE>
SUMMIT INVESTMENT TRUST
SUMMIT HIGH YIELD FUND
Schedule of Portfolio Investments
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds (94.0%):
Communications (42.7%):
Data/Internet (4.0%):
$ 500,000 Covad Communications Group Inc., 12.50%, 2/15/09....... $ 517,500
500,000 Psinet Inc., 11.00%, 8/1/09............................ 512,500
500,000 Teligent, Inc., 11.50%, 12/1/07........................ 482,500
-----------
1,512,500
-----------
Domestic--Retail Telecom (7.4%):
2,125,000 Focal Communications Corp., 0.00%, 2/15/08 (b)......... 1,296,250
1,000,000 ITC Deltacom, Inc., 9.75%, 11/15/08.................... 1,000,000
500,000 Pac-West Telecom Inc, 13.50%, 2/1/09................... 517,500
-----------
2,813,750
-----------
Domestic--Wholesale Telecom (1.9%):
650,000 Qwest Communications International, 10.88%, 4/1/07..... 726,375
-----------
Equipment Providers (2.3%):
1,500,000 SBA Communications Corp., 0.00%, 3/1/08 (c)............ 885,000
-----------
International--Retail Telecom (8.6%):
1,000,000 ESAT Telecom Group plc, Senior Notes, 11.88%, 12/1/08.. 1,075,000
1,000,000 Metronet Communications Corp., 12.00%, 8/15/07......... 1,165,000
1,000,000 Versatel Telecom, 13.25%, 5/15/08...................... 1,052,500
-----------
3,292,500
-----------
International--Wholesale Telecom (11.0%):
1,000,000 Esprit Telecom Group plc, 11.50%, 12/15/07............. 1,015,000
2,000,000 Facilicom International, Inc., 10.50%, 1/15/08......... 1,780,000
500,000 Level 3 Communications, Inc., 9.13%, 5/1/08............ 472,500
1,000,000 Viatel, Inc., 11.25%, 4/15/08.......................... 990,000
-----------
4,257,500
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Paging/Telegraph (4.4%):
$2,500,000 Arch Communications Group, 6.75%, 12/1/03.............. $ 1,400,000
1,000,000 Paging Network Do Brazil SA, 13.50%, 6/6/05............ 280,000
-----------
1,680,000
-----------
Pay Phone Operators (3.1%):
1,500,000 Phonetel Technologies, Inc., 12.00%, 12/15/06.......... 255,000
1,000,000 Talton Holdings, Inc., 11.00%,
6/30/07............................................... 942,500
-----------
1,197,500
-----------
16,365,125
-----------
Energy/Mining (2.2%):
Distribution (1.8%):
1,000,000 Empire Gas Corp., 7.00%,
7/15/04 (d)........................................... 680,000
-----------
Services (0.4%):
1,500,000 Eagle Geophysica, Inc., 10.75%, 7/15/08................ 150,000
-----------
830,000
-----------
Financial (2.6%):
Banking/Insurance (2.6%):
1,000,000 AmeriCredit Corp., 9.88%, 4/15/06*..................... 1,010,000
-----------
Manufacturing/Consumer Goods (10.1%):
Consumer Products (2.5%):
1,000,000 Werner Holdings Co., Inc., 10.00%, 11/15/07............ 955,000
-----------
Electric/HVAC (2.7%):
1,000,000 International Wire Group, 11.75%, 6/1/05............... 1,028,750
-----------
Professional & Commercial Equipment (2.0%):
1,000,000 Anchor Lamina, Inc., 9.88%, 2/1/08..................... 770,000
-----------
Textile/Apparel (2.9%):
1,500,000 Anvil Knitwear, 10.88%, 3/15/07........................ 1,095,000
-----------
3,848,750
-----------
</TABLE>
Continued
-8-
<PAGE>
SUMMIT INVESTMENT TRUST
SUMMIT HIGH YIELD FUND
Schedule of Portfolio Investments, Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Manufacturing/Trade (14.5%):
Metals (2.6%):
$1,000,000 Kaiser Aluminum & Chemicals, 12.75%, 2/1/03............ $ 990,000
-----------
Miscellaneous (8.8%):
1,500,000 Derby Cycle Corp., 10.00%, 5/15/08..................... 851,250
500,000 IMO Industries, Inc., 11.75%, 5/1/06................... 500,000
1,000,000 International Knife & Saw Corp., 11.38%, 11/15/06...... 770,000
500,000 Knowles Electronics Inc., 13.125%, 10/15/09............ 485,000
1,000,000 Numatics, Inc., 9.63%, 4/1/08.......................... 770,000
-----------
3,376,250
-----------
Paper & Pulp (3.1%):
1,000,000 Indah Kiat Fin Mauritius, 10.00%, 7/1/07............... 705,000
500,000 Repap New Brunswick, 10.63%, 4/15/05................... 467,500
-----------
1,172,500
-----------
5,538,750
-----------
Media (6.5%):
Outdoor Advertising (2.6%):
1,000,000 Tri-State Outdoor Media, 11.00%, 5/15/08............... 985,000
-----------
Radio Broadcasting (3.9%):
500,000 Avalon Cable Mi, 9.375%, 12/1/08....................... 500,000
1,000,000 Spanish Broadcasting Systems, 9.625%, 11/1/09.......... 1,001,250
-----------
1,501,250
-----------
2,486,250
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Miscellaneous Services (12.5%):
Healthcare (2.4%):
$1,000,000 Insight Health Services Corp., 9.63%, 6/15/08.......... $ 935,000
-----------
Hotel/Gaming (7.7%):
500,000 Casino Magic--Louisiana, Inc., 13.00%, 8/15/03......... 550,000
1,000,000 Hollywood Casino Corp, Senior Secured Notes, 11.25%,
5/1/07................................................ 1,030,000
1,000,000 Vail Resorts Inc, Senior Sub. Notes, 8.75%, 5/15/09*... 935,000
500,000 Venetian Casino/Lv Sands, 12.25%, 11/15/04, Issued At
85.................................................... 417,500
-----------
2,932,500
-----------
Other (2.4%):
1,000,000 Affinity Group Holdings, Inc., 11.00%, 4/1/07.......... 920,000
-----------
4,787,500
-----------
Pharmaceuticals (2.6%):
1,000,000 Express Scripts, 9.625%, 6/15/09....................... 1,005,000
-----------
Transportation (0.3%):
Trucking/Warehousing (0.3%):
500,000 Trism, Inc., 10.75%, 12/15/00.......................... 105,000
-----------
Total Corporate Bonds............................................. 35,976,375
-----------
Common Stocks (0.9%):
Communications (0.9%):
International--Wholesale Telecom (0.9%):
8,083 Viatel Inc............................................. 339,486
-----------
Paging/Telegraph (0.0%):
1,000 Paging Do Brazil Holding Co. LLC, Class B.............. --
-----------
Total Common Stocks............................................... 339,486
-----------
</TABLE>
Continued
-9-
<PAGE>
SUMMIT INVESTMENT TRUST
SUMMIT HIGH YIELD FUND
Schedule of Portfolio Investments, Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- -----------
<C> <S> <C>
Warrants (0.0%):
Manufacturing/Consumer Goods (0.0%):
Consumer Products (0.0%):
2,000 Renaissance Cosmetics, Inc., Warrants, expire 8/15/01... $ 2
-----------
Media (0.0%):
200 American Telecasting, Inc., Warrants, expire 8/10/00.... --
-----------
Total Warrants.................................................... 2
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- -----------
<C> <S> <C>
Investment Companies (2.6%):
1,003,085 Fifth Third Commercial Paper Fund....................... $ 1,003,085
-----------
Total Investment Companies........................................ 1,003,085
-----------
Total Investments
(Cost $43,852,973)(a)--97.5%..................................... 37,318,948
-----------
Other assets in excess of liabilities--2.5%....................... 945,485
-----------
Total Net Assets--100.0%.......................................... $38,273,433
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $38,273,433.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $112,500. Cost for federal income tax purposes differs from value by
net unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......... $ 669,920
Unrealized depreciation......... (7,203,945)
-----------
Net unrealized depreciation..... $(6,534,025)
===========
</TABLE>
(b)Interest rate increases to 12.13% on February 15, 2003.
(c)Interest rate increases to 12.00% on March 1, 2003.
(d)Interest rate increases to 12.88% on July 15, 2004.
* Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At November
30, 1999, the market value of Rule 144A securities amounted to $1,945,000
or 5% of net assets.
See notes to financial statements.
-10-
<PAGE>
SUMMIT INVESTMENT TRUST
SUMMIT EMERGING MARKETS BOND FUND
Schedule of Portfolio Investments
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds (95.1%):
Asia (13.2%):
Indonesia (8.9%):
$1,000,000 APP International Finance, 11.75%, 10/1/05........... $ 790,000
1,000,000 DGS International Finance Co. BV, 10.00%, 6/1/07*.... 590,000
1,000,000 Tjiwi Kimia Finance Mauritius, 10.00%, 8/1/04........ 720,000
-----------
2,100,000
-----------
Israel (2.3%):
1,000,000 Barak I.T.C., 0.00%, 11/15/07 (b).................... 540,000
-----------
Philippines (2.0%):
500,000 Bayan Telecommunications, Senior Notes, 13.5%,
7/15/06............................................. 465,000
-----------
3,105,000
-----------
Caribbean (3.9%):
Dominican Republic (3.9%):
1,000,000 Tricom SA, 11.38%, 9/1/04............................ 925,000
-----------
Eastern Europe (9.7%):
Poland (3.6%):
1,000,000 Netia Holdings BV, 10.25%, 11/1/07................... 845,000
-----------
Russia (1.6%):
2,498,794 Russia-Ian, Floating Rate Note, currently 5.97%,
12/15/15*........................................... 374,819
-----------
Turkey (4.5%):
1,000,000 Cellco Finance NV, 15.00%, 8/1/05*................... 1,050,000
-----------
2,269,819
-----------
Latin America (51.4%):
Argentina (22.1%):
1,000,000 Acindar Ind., 11.25%, 2/15/04........................ 760,000
1,000,000 Autopistas Del Sol SA, 10.25%, 8/1/09*............... 750,000
500,000 Cablevision SA, 13.75%, 5/1/09....................... 487,500
1,000,000 Cia International Telecom Cointel, 10.38%, 8/1/04.... 795,000
1,000,000 CTI Holdings SA, 0.00%, 4/15/08 (c).................. 550,000
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Latin America, continued
Argentina, continued
$1,000,000 Mastellone Hermanos SA, 11.75%, 4/1/08............... $ 830,000
1,000,000 Supercanal Holdings, 11.50%, 5/15/05*................ 520,000
500,000 Supermercados Norte, 10.88%, 2/9/04*................. 485,000
-----------
5,177,500
-----------
Brazil (11.9%):
1,000,000 Comtel Brasileira Ltd., 10.75%, 9/26/04*............. 950,000
1,000,000 Espirito Santo Centrais Electrias, 10.00%, 7/15/07... 792,500
1,000,000 MRS Logistica SA, 10.63%, 8/15/05*................... 760,000
1,000,000 Paging Network Do Brazil SA, 13.50%, 6/6/05.......... 280,000
-----------
2,782,500
-----------
Mexico (13.7%):
500,000 Alestra SA de R.L., de C.V., 12.63%, 5/15/09*........ 500,000
1,000,000 Consorcio Grupo Dina, 8.00%, 8/8/04, Convertible
Bond................................................ 502,500
500,000 Gruma, SA de C.V., 7.63%, 10/15/07................... 441,875
500,000 Grupo Industrial Durango, 12.63%, 8/1/03............. 495,000
1,000,000 Innova S de R.L., 12.88%, 4/1/07..................... 865,000
500,000 TV Azteca SA, 10.50%, 2/15/07........................ 410,000
-----------
3,214,375
-----------
Venezuela (3.7%):
1,000,000 Cantv Finance Ltd., 9.25%, 2/1/04.................... 863,750
-----------
12,038,125
-----------
Western Europe (16.9%):
Spain (4.3%):
500,000 Jazztel PLC, Senior Notes, 14.00%, 4/1/09............ 505,000
500,000 Ono Finance Plc, 13.00%, 5/1/09...................... 500,000
-----------
1,005,000
-----------
</TABLE>
Continued
-11-
<PAGE>
SUMMIT INVESTMENT TRUST
SUMMIT EMERGING MARKETS BOND FUND
Schedule of Portfolio Investments, Continued
November 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Corporate Bonds, continued:
Greece (3.8%):
$1,000,000 Fage Dairy Industries SA, 9.00%, 2/1/07............... $ 890,000
-----------
Luxembourg (2.1%):
500,000 PTC International Finance II SA, 11.25%,12/1/09....... 496,250
-----------
Netherlands (6.7%):
500,000 United Pan-Europe Comm, 11.25%, 11/01/09.............. 520,000
500,000 Versatel Telecom, 11.875%, 7/15/09.................... 502,500
500,000 Versatel Telecom BV, 13.25%, 5/15/08.................. 526,250
-----------
1,548,750
-----------
3,940,000
-----------
Total Corporate Bonds............................................ 22,277,944
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Rights/Warrants (0.1%):
Western Europe (0.1%):
Spain (0.1%):
$ 500 Ono Finance Plc....................................... $ 30,000
-----------
Total Rights/Warrants............................................ 30,000
-----------
Investment Companies (1.9%):
North America (1.9%):
United States (1.9%):
449,165 Fifth Third Commercial Paper Fund..................... 449,165
-----------
Total Investment Companies....................................... 449,165
-----------
Total Investments
(Cost $27,526,733)(a)--97.1%.................................... 22,757,109
-----------
Other assets in excess of liabilities--2.9%...................... 691,605
-----------
Total Net Assets--100.0%......................................... $23,448,714
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $23,448,714.
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation (depreciation) as follows:
<TABLE>
<S> <C>
Unrealized appreciation......... $ 250,894
Unrealized depreciation......... (5,020,518)
-----------
Net unrealized depreciation..... $(4,769,624)
===========
</TABLE>
(b) Interest rate increases to 12.50% on November 15, 2002.
(c) Interest rate increases to 11.50% on April 15, 2003.
* Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At November
30, 1999, the market value of Rule 144A securities amounted to $5,979,819
or 25% of net assets.
See notes to financial statements.
-12-
<PAGE>
SUMMIT INVESTMENT TRUST
Notes to Financial Statements
November 30, 1999
(Unaudited)
1. Organization:
Summit Investment Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company established as a Massachusetts business trust under an
Agreement and Declaration of Trust dated March 8, 1994, as amended. The Trust
is comprised of two managed investment portfolios, the Summit High Yield Fund
(the "High Yield Fund") and the Summit Emerging Markets Bond Fund (the
"Emerging Markets Fund") collectively, (the "Funds") or individually, (the
"Fund"). On July 31, 1997, the Institutional Service Shares of the Summit
High Yield Fund ceased operations and all outstanding shares were converted
to High Yield Shares. Effective October 8, 1998, the Funds added Class B
Shares, which impose a back end sales charge (load) if an investor sells the
shares before the sixth year after their purchase.
The High Yield Fund's investment objective is high current income with cap
ital appreciation as a secondary goal. The Fund invests primarily in lower-
quality, intermediate term corporate bonds.
The Emerging Market Fund's investment objective is to provide high income and
capital appreciation. The Fund invests primarily in government and corporate
debt securities of emerging market nations.
The Funds are authorized to issue an unlimited number of shares, which are
units of beneficial interest without par value.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates.
Securities Valuation:
Securities which are traded on stock exchanges are valued at the last sales
price as of the close of the New York Stock Exchange (the "Exchange"), or
lacking any sales, at the closing bid price. Securities traded in the "over-
the-counter" market are valued at the last bid price quoted by brokers that
make markets in the securities at the close of trading on the Exchange. Fixed
income securities are generally traded in the over-the- counter market.
Securities and assets for which market quotations are not readily available
or not obtained from a pricing service are valued at fair value as determined
in good faith by the Board of Trustees, although the actual calculations may
be made by persons acting pursuant to the direction of the Trustees. As
approved by the Board of Trustees, the Fund uses a pricing service or
services in determining the net asset value of shares of the Funds. Fixed
income securities with a remaining maturity of 60 days or less are valued on
an amortized cost basis, which the Trustees have determined reflects fair
value.
Continued
-13-
<PAGE>
SUMMIT INVESTMENT TRUST
Notes to Financial Statements, Continued
November 30, 1999
(Unaudited)
Foreign Currency Translation:
The accounting records of the Trust are maintained in U.S. dollars.
Investment securities and other assets and liabilities of the Emerging
Markets Fund denominated in a foreign currency are translated into U.S.
dollars at the exchange rate on the date of valuation. Purchases and sales of
securities, income receipts and expense payments are translated into U.S.
dollars at the exchange rate on the dates of transactions. The Fund does not
isolate that portion of the results of operations resulting from fluctuations
in foreign exchanges on investments from the fluctuations arising from
changes in market prices of securities held. Such fluctuations are included
with the net realized and unrealized gains or losses from investments.
Foreign Currency Contracts:
A forward foreign currency exchange contract ("forward") is an agreement
between two parties to buy and sell a currency at a set price on a future
date. The market value of the forward fluctuates with changes in currency
exchange rates. The forward is marked-to-market daily and the change in
market value is recorded by a Fund as appreciation or depreciation. When the
forward is closed, the Fund records a realized gain or loss equal to the
fluctuations in value during the period the forward was open. A Fund could be
exposed to risk if a counterparty is unable to meet the terms of a forward or
if the value of the currency changes unfavorably.
Forwards may involve market or credit risk in excess of the amounts reflected
on the Fund's statement of assets and liabilities. The gain or loss from the
difference between the original contracts and the amount realized upon the
closing of such contracts is included in net realized gains/losses from
investment and foreign currency transactions. No forwards were held as of
November 30, 1999.
Securities Transactions and Related Income:
Securities transactions are accounted for on the trade date. Interest income
is recognized on the accrual basis and includes, where applicable, the
amortization of premiums or accretion of discounts. Dividend income is
recorded on the ex-dividend date. Net realized gains and losses on
investments sold and on foreign currency transactions are recorded on the
basis of identified cost.
Dividends to Shareholders:
Dividends from net investment income are declared and paid monthly. Net
realized capital gains, if any, are declared and paid at least annually.
Dividends from net investment income and from net realized capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These "book/tax" differences are
primarily due to differing treatments for market discount and foreign
currency transactions.
Continued
-14-
<PAGE>
SUMMIT INVESTMENT TRUST
Notes to Financial Statements, Continued
November 30, 1999
(Unaudited)
Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve it from all, or substantially
all, federal income taxes.
Other:
Expenses directly attributable to a Fund are charged to that Fund, while
expenses which are attributable to both Funds are allocated among each Fund
based upon relative net assets or another appropriate method.
3. Purchases and Sales of Portfolio Securities:
Purchases and sales of securities (excluding short-term securities) for the
six months ended November 30, 1999 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
High Yield Fund........................................ $19,388,075 $27,146,432
Emerging Markets Fund.................................. $ 2,988,485 $ 1,650,215
</TABLE>
4. Related Party Transactions:
First Summit Capital Management ("FSCM" or the "Adviser"), a joint venture
having its principal offices at 1876 Waycross Road, Cincinnati, Ohio 45202,
is the investment adviser to the Funds. FSCM was organized principally for
purposes of sponsoring and managing the Trust pursuant to a joint venture
agreement (the "Joint Venture Agreement") between Summit Investment Partners,
LLC ("SIP"), originally Carillon Advisers, Inc.) and Freeman Holding Company,
Inc. ("Freeman"), a Delaware Corporation. SIP serves as the general manager
of the Adviser and is responsible for maintaining its books of account and
other financial records and for preparing its quarterly financial statements.
SIP is a division of Union Central Life, and Ohio mutual fund insurance
company, which owns approximately 62% of the High Yield Fund and 98% of the
Emerging Markets Fund as of November 30, 1999. Freeman is the parent
corporation of Freeman Securities Company, Inc., a New Jersey corporation
which is registered as a broker-dealer under the Securities Exchange Act of
1934, as amended, and is a member of the National Association of Securities
Dealers, Inc.
Under the terms of the Investment Advisory Agreement between the Trust and
FSCM (the "Advisory Agreement"), FSCM is entitled to receive fees based on a
percentage of the average daily net assets of the Funds. For the High Yield
Fund, effective July 1, 1995, the investment advisory fee is based on the
total return investment performance of the High Yield Fund for the prior
twelve-month period relative to the percentage change in the Salomon Brothers
High Yield Market Index for the same period. The advisory fee is paid monthly
at an annual rate which varies between 0.35% and 1.15% of the High Yield
Fund's average daily net assets. For the Emerging Markets Fund, the advisory
fee is paid monthly at an annual rate of 0.75% of the
Continued
-15-
<PAGE>
SUMMIT INVESTMENT TRUST
Notes to Financial Statements, Continued
November 30, 1999
(Unaudited)
Fund's average daily net assets. The Adviser has contractually agreed to
waive a portion of its advisory fee so as to limit the total annual expenses
of the A shares and B shares of the High Yield Fund to 1.60% and 2.35%,
respectively, and the Emerging Markets to 2.00% and 2.75%, respectively. For
the six months ended November 30, 1999, FSCM voluntarily waived $6,146 in
advisory fees for the High Yield Fund and $0 for the Emerging Markets Fund.
Summit Investment Partners, LLC, with offices at 312 Elm Street, Suite 2525,
Cincinnati, Ohio 45202, serves as investment sub-adviser (the "Sub-Adviser")
to the Funds pursuant to an Investment Sub-Advisory Agreement with the
Adviser dated September 18, 1996 (the "Sub-Advisory Agreement"). Under the
Sub-Advisory Agreement, Summit Investment Partners, LLC provides, subject to
the Adviser's direction, a portion of the investment advisory services for
which the Adviser is responsible pursuant to the Advisory Agreement relating
to the Funds. Under the Sub-Advisory Agreement, the Sub-Adviser receives from
the Adviser an annual fee in the amount of $125,000 and $125,000 per year
from the High Yield Fund and Emerging Markets Fund, respectively. If the Sub-
Adviser renders services to the Adviser under the Sub-Advisory Agreement for
a period of less than twelve months, the Sub-Adviser is entitled to a pro-
rata portion of such fee, or such other fees as shall be agreed to by the
Adviser and the Sub-Adviser, not to exceed the equivalent of the pro-rata
portion of such fee. In the event that the amount payable as the Sub-
Adviser's fees exceeds the amount of advisory fees paid to the Adviser
pursuant to the Advisory Agreement, the difference will be shared equally by
the Adviser's general partners, Freeman and SIP, or paid by FSCM.
BISYS Fund Services Ohio, Inc. (the "Administrator"), an indirect, wholly-
owned subsidiary of The BISYS Group, Inc. ("BISYS") serves as the
administrator, manager, and distributor to the Trust.
Certain officers of the Trust are affiliated with BISYS or with FSCM. Such
officers are not paid any fees directly by the Funds or the Trust for serving
as officers of the Trust.
The Trust's Administrator assists the Trust in all aspects of its
administration and operation. The Administrator is entitled to a fee under
the terms of the Management and Administration Agreement between the Trust
and the Administrator. The fee is computed daily and paid monthly as a
percentage of the average daily net assets of the Funds at an annual rate of
0.20%. For the six months ended November 30, 1999, the Administrator
voluntarily waived $10,778 and $5,660 of administration fees for the High
Yield Fund and Emerging Markets Fund, respectively.
The Trust has adopted a Distribution and Shareholder Service Plan (the
"Plan") pursuant to Rule 12b-1 under the 1940 Act. Under which BISYS Fund
Services, Limited Partnership, an [indirect] wholly-owned subsidiary of BISYS
(the "Distributor"), receives fees for providing distribution and shareholder
services under the Distribution Agreement between the Trust and the
Distributor. Under the Plan, Class A shares are subject to an annual
distribution and shareholder servicing fee of up to 0.25% of the average
daily net assets of the Class A shares of each Fund. Class B shares are
subject to an annual distribution fee of up to 1.00% of the average daily net
assets of the Class B shares of each Fund. The Distributor may use up to
0.25% of the fees for shareholder servicing and up to 0.75% for distribution
activities. For the six months ended November 30, 1999, the Distributor has
received under the Plan fees of $50,498 and $28,304 for the High Yield Fund
and the Emerging Markets Fund, respectively. These fees may be used by the
Distributor to pay financial
Continued
-16-
<PAGE>
SUMMIT INVESTMENT TRUST
Notes to Financial Statements, Continued
November 30, 1999
(Unaudited)
institutions, including the SIP broker/dealers and other institutions, or to
reimburse the Distributor or its affiliates for distribution or shareholder
service assistance. In addition, the Distributor has the right, as principal
underwriter, to purchase Fund shares at their net asset value and to sell
such shares to the public, or to dealers who have entered into selected
dealer agreements with the Distributor, in both cases against orders for such
shares. The Distributor may sell such shares at the public offering price,
which for the Class A Shares is net asset value plus a maximum sales charge
of 4.50% or, in the case of sales to dealers, at this public offering price
less a concession determined by the Distributor which may not exceed the
amount of the sales charge or the underwriting discount. For the six months
ended November 30, 1999, the Distributor received $4,384 and $0 from
commissions earned on sales of the Class A Shares of the High Yield Fund and
Emerging Markets Fund, respectively, of which $556 was re-allowed to BISYS
and Carillon Investments (affiliated broker/dealers).
The Administrator also serves as the Trust's transfer agent and is entitled
to receive fees based upon a contractually specified amount per shareholder
with specified minimum per portfolio amounts and surcharges. In addition, the
transfer agent is reimbursed for certain out-of-pocket expenses incurred in
providing transfer agency services. The Administrator also serves the Trust
as fund accountant.
Continued
-17-
<PAGE>
SUMMIT INVESTMENT TRUST
Notes to Financial Statements, Continued
November 30, 1999
(Unaudited)
5. Shares of Beneficial Interest:
The following is a summary of transactions in Fund shares:
<TABLE>
<CAPTION>
High Yield Fund Emerging Markets Bond Fund
------------------------------ ------------------------------
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
A Shares:
Proceeds from shares
issued................. $ 746,674 $ 28,992,269 $ 848,098 $ 863,623
Dividends reinvested... 1,435,296 6,750,909 740,920 2,917,768
Cost of shares
redeemed............... (8,321,468) (32,179,576) (885,060) (698,624)
----------- ------------ --------- ----------
Change in net assets
from A Shares
transactions........ (6,139,498) $ 3,563,602 $ 703,958 $3,082,767
=========== ============ ========= ==========
B Shares:
Proceeds from shares
issued................. $ 11,009 375,304(a) -- 1,000(a)
Dividends reinvested... 2,456 3,302 67 117
----------- ------------ --------- ----------
Change in net assets
from B Shares
transactions........ $ 13,465 378,606 $ 67 1,117
=========== ============ ========= ==========
SHARE TRANSACTIONS:
A Shares:
Proceeds from shares
issued................. 88,224 3,020,270 116,945 121,988
Dividends reinvested... 169,510 727,633 102,800 405,991
Cost of shares
redeemed............... (997,699) (3,426,791) (121,116) (97,113)
----------- ------------ --------- ----------
Change in A Shares... (739,965) 321,112 98,629 430,866
=========== ============ ========= ==========
B Shares:
Proceeds from shares
issued................. 1,256 42,053(a) -- 167(a)
Dividends reinvested... 294 371 9 17
Cost of shares
redeemed............... -- -- -- --
----------- ------------ --------- ----------
Change in B Shares... 1,550 42,424 9 184
=========== ============ ========= ==========
</TABLE>
(a) Period from commencement of operations (October 8, 1998).
-18-
<PAGE>
SUMMIT HIGH YIELD FUND
Financial Highlights
For a unit of beneficial interest outstanding for each period
<TABLE>
<CAPTION>
For the For the For the For the For the
Six Months Ended Year Ended Year Ended Year Ended Year Ended
November 30, 1999 May 31, 1999 May 31, 1998 May 31, 1997 May 31, 1996
----------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
A Shares
Net Asset Value,
Beginning of Period..... $ 8.79 $ 10.99 $ 11.32 $ 11.05 $ 10.11
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income. 0.42 0.95 1.01 0.99 1.01
Net realized and
unrealized gains
(losses) on
investments.......... (0.62) (1.89) 0.70 0.90 0.95
------- ------- ------- ------- -------
Total from
Investment
Activities......... (0.20) (0.94) 1.71 1.89 1.96
------- ------- ------- ------- -------
DISTRIBUTIONS:
Net investment income. (0.42) (0.97) (1.01) (0.99) (1.01)
In excess of net
investment income..... -- -- -- (0.13) --
Net realized gains.... -- (0.29) (1.03) (0.50) (0.01)
------- ------- ------- ------- -------
Total Distributions. (0.42) (1.26) (2.04) (1.62) (1.02)
------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 8.17 $ 8.79 $ 10.99 $ 11.32 $ 11.05
======= ======= ======= ======= =======
Total Return (excludes
sales charges).......... (1.55)%(a) (8.45)% 16.17% 18.15% 20.34%
Ratios to Average Net
Assets/Supplemental
Data:
Net Assets at end of
period (000).......... $37,915 $47,325 $55,643 $34,707 $28,628
Expenses before
waivers............... 1.68%(b) 1.71% 2.03% 2.32% 2.24%
Net investment income
before waivers....... 9.80%(b) 9.86% 8.38% 8.01% 8.78%
Expenses net of
waivers............... 1.60%(b) 1.60% 1.60% 1.60% 1.60%
Net investment income
net of waivers....... 9.88%(b) 9.97% 8.81% 8.73% 9.42%
Portfolio turnover
(c)................... 46.43% 176.06% 518.74% 271.68% 187.61%
</TABLE>
- --------
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of the shares issued.
See notes to financial statements.
-19-
<PAGE>
SUMMIT HIGH YIELD FUND
Financial Highlights
For a unit of beneficial interest outstanding for each period
<TABLE>
<CAPTION>
For the For the
Six Months Ended Period Ended
November 30, 1999 May 31, 1999(a)
----------------- ---------------
<S> <C> <C>
B Shares
Net Asset Value, Beginning of Period......... $ 8.78 $ 9.10
------ ------
INVESTMENT ACTIVITIES:
Net investment income...................... 0.38 0.53
Net realized and unrealized gains (losses)
on investments............................. (0.62) 0.02
------ ------
Total from Investment Activities......... (0.24) 0.55
------ ------
DISTRIBUTIONS:
Net investment income...................... (0.39) (0.58)
In excess of net investment income......... -- --
Net realized gains......................... -- (0.29)
------ ------
Total Distributions...................... (0.39) (0.87)
------ ------
Net Asset Value, End of Period............... $ 8.15 $ 8.78
====== ======
Total Return (excludes sales charges)........ (2.32)%(b) 6.20%(b)
Ratios to Average Net Assets/Supplemental
Data:
Net Assets at end of period (000).......... $ 359 $ 372
Expenses before waivers.................... 2.33%(c) 2.31%(c)
Net investment income before waivers....... 8.98%(c) 9.02%(c)
Expenses net of waivers.................... 2.32%(c) 2.22%(c)
Net investment income net of waivers....... 8.99%(c) 9.11%(c)
Portfolio turnover (d)..................... 46.43% 176.06%
</TABLE>
- --------
(a) Period from commencement of operations (October 8, 1998).
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of the shares issued.
See notes to financial statements.
-20-
<PAGE>
SUMMIT EMERGING MARKETS BOND FUND
Financial Highlights
For a unit of beneficial interest outstanding for each period
<TABLE>
<CAPTION>
A Shares B Shares
---------------------------------------------- ---------------------------------
For the For the For the For the For the
Six Months Ended Year Ended Period Ended Six Months Ended Period Ended
November 30, 1999 May 31, 1999 May 31, 1998(a) November 30, 1999 May 31, 1999(b)
----------------- ------------ --------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 7.28 $ 9.87 $ 10.00 $ 7.28 $ 5.94
------- ------- ------- ------ ------
INVESTMENT ACTIVITIES:
Net investment income.. 0.36 0.99 0.35 0.35 0.62
Net realized and
unrealized gains
(losses) on
investments........... 0.18 (2.54) (0.15) 0.15 1.39
------- ------- ------- ------ ------
Total from Investment
Activities........... 0.54 (1.55) 0.20 0.50 2.01
------- ------- ------- ------ ------
DISTRIBUTIONS:
Net investment income.. (0.38) (1.00) (0.33) (0.35) (0.63)
Net realized gains..... -- (0.04) -- -- (0.04)
------- ------- ------- ------ ------
Total Distributions... (0.38) (1.04) (0.33) (0.35) (0.67)
------- ------- ------- ------ ------
Net Asset Value,
End of Period.......... $ 7.44 $ 7.28 $ 9.87 $ 7.43 $ 7.28
======= ======= ======= ====== ======
Total Return (excludes
sales charges)......... 16.93% (14.86)% 2.01%(c) 15.92% 35.12%(c)
Ratios to Average Net
Assets/ Supplemental
Data:
Net Assets at end of
period (000).......... $23,447 $22,237 $25,879 $ 1 $ 1
Expenses before
waivers............... 2.05% 2.18% 2.20%(d) 2.80% 2.94%(d)
Net investment income
before waivers........ 9.85% 13.13% 8.47%(d) 9.04% 13.26%(d)
Expenses net of
waivers............... 2.00% 2.00% 2.00%(d) 2.75% 2.75%(d)
Net investment income
net of waivers........ 9.89% 13.31% 8.67%(d) 9.04% 13.43%(d)
Portfolio turnover (e). 7.92% 37.83% 85.69% 7.92% 37.83%
</TABLE>
- --------
(a) Period from commencement of operations (December 31, 1997).
(b) Period from commencement of operations (October 8, 1998).
(c) Not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of the shares issued.
See notes to financial statements.
-21-
<PAGE>
-----------------------------------
Trustees and Officers
Steven R. Sutermeister, Chairman and Trustee
James F. Smith, President and Trustee
Theodore H. Emmerich, Trustee
T. Ashley Cooper, Trustee
Bruce H. Olson, Trustee
John Quillin, Secretary
Nimish Bhatt, Treasurer
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Investment Adviser
First Summit Capital Management
1876 Waycross Road
Cincinnati, OH 45240
Investment Sub-Adviser
Summit Investment Partners, LLC
312 Elm St., Suite 2525
Cincinnati, OH 45202
Administrator and Distributor
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219-3035
Legal Counsel
Stradley, Ronon, Stevens & Young, LLP
2600 Commerce Square
Philadelphia, PA 19103-7098
Auditors
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215
01/00
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LOGO
SUMMIT
INVESTMENT
TRUST
Summit High Yield Fund
Summit Emerging Markets Bond Fund
Managed by
First Summit Capital Management
Sub-Advised by
Summit Investment Partners, LLC
SEMI-ANNUAL REPORT
TO
SHAREHOLDERS
NOVEMBER 30, 1999
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