Calvert Variable Products N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-4000

SUMMIT MUTUAL FUNDS, INC.

(Exact name of registrant as specified in charter)

1876 Waycross Road, Cincinnati, OH 45240

Address of principal executive offices) (Zip code)

John F. Labmeier, Esq.

The Union Central Life Insurance Company

P.O. Box 40888

Cincinnati, Ohio 45240

(Name and address of agent for service)

(513) 595-2600

Registrant's telephone number, including area code

Date of fiscal year end: December 31, 2006

Date of reporting period: December 31, 2006

Item 1. Report to Stockholders.

BLANK PAGE

  Summit Mutual Funds, Inc. - Pinnacle Series    

 ANNUAL REPORT - TABLE OF CONTENTS    

Message from the President	1
Portfolio Expenses	2
Portfolio Managers’ Reports and Financial Statements:
Zenith Portfolio	3
Bond Portfolio	9
S&P 500 Index Portfolio	17
S&P MidCap 400 Index Portfolio	27
Balanced Index Portfolio	37
Nasdaq-100 Index Portfolio	48
Russell 2000 Small Cap Index Portfolio	55
EAFE International Index Portfolio	78
Lehman Aggregate Bond Index Portfolio	92
Notes to Financial Statements	99
Report of Independent Registered Public Accounting Firm	104

Important Considerations about Investing in Summit Mutual Funds

A description of the policies and procedures that the Portfolios use to determine how to vote proxies relating to portfolio securities and information regarding how the Portfolios voted portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-877-546-FUND, or on the Portfolios’ website at www.summitfunds.com, or on the Securities and Exchange Commission’s website at www.sec.gov.

The Portfolios file a complete Schedule of Investments in Securities with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Portfolios’ Form N-Q is available on the SEC’s website at www.sec.gov. The Portfolios’ Form N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Mutual fund investing involves risk. Principal loss is possible.

The Bond Portfolio, Balanced Index Portfolio, and Lehman Aggregate Bond Index Portfolio invest in debt securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

Investments by the Bond Portfolio in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities.

Because the S&P 500 Index Portfolio, S&P MidCap 400 Index Portfolio, Balanced Index Portfolio, Nasdaq-100 Index Portfolio, Russell 2000 Small Cap Index Portfolio, EAFE International Index Portfolio, and Lehman Aggregate Bond Index Portfolio (collectively, the “Index Portfolios”) have expenses, and their corresponding indexes do not, the Index Portfolios may be unable to replicate precisely the performance of their corresponding indexes. While the Index Portfolios remain small, they may have a greater risk that their performance will not match that of the corresponding indexes.

All indexes listed in the report are unmanaged, and are not available for direct investment.

The Manager Comments provided in this report reflect the opinions of the Portfolio’s Managers and are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

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.

(BLANK PAGE )

 Summit Mutual Funds, Inc.    

 MESSAGE FROM THE PRESIDENT   

We are pleased to send you Summit Mutual Funds’ 2006 Annual Report for the twelve-month period ended December 31, 2006. We welcome new and thank existing investors in the Summit Funds. We strive to help you reach your financial goals.

Financial markets performed well over the last 12 months, providing positive returns in all of the major domestic stock and bond indexes. International equities, as measured by the EAFE International Index, outperformed the U.S. domestic market over the past year. In the fixed income arena, high yield indexes outperformed the broader, investment grade fixed income indexes, such as the Lehman Aggregate Bond Index. Both indexes provided positive returns, but investors showed a clear preference for the higher risk, higher yielding bonds

over the last twelve months.

While the economy is slowing, corporate profits remain healthy and inflation remains under control, providing a nice backdrop for financial assets. After consistently growing in the 3%-4% range for the last few years, Gross Domestic Product (GDP) grew at an annual rate of only 1.6% in the third quarter of 2006. It appears that 4th quarter GDP will come in a bit stronger, but it is still unclear at this point in time if the economy will moderate or reaccelerate in the months ahead. Commodity prices have stabilized after large increases over the last few years and have begun to retreat in some areas, particularly oil and natural gas. This gives some credence to the Federal Reserve Bank’s position that inflation pressures will ease in coming quarters.

The Federal Reserve paused during 2006 after seventeen consecutive increases in the Fed Funds rate.  Chairman Bernanke believes that he can engineer a soft landing where economic

growth continues and inflationary pressures abate.

For the twelve-month period ended December 31st, the large cap S&P 500 Index advanced 15.79%, the S&P MidCap 400 Index improved 10.32% and the small cap Russell 2000 Index rose 18.37%. Mid cap stocks have clearly lagged, after outperforming large cap stocks for the last several years.  Other market sectors such as the large cap growth Nasdaq-100 Index gained 7.28% while the international EAFE Index (in U.S. dollars and net of foreign taxes) climbed 26.34%. Growth stocks continued to under-perform value stocks, which is a trend that is better than 5 years old.

“Maintain the proper perspective (and) have realistic expectations . . .”

Fixed income markets provided positive returns over the last twelve months, but the magnitude was muted slightly by rising interest rates.  Intermediate interest rates rose in the range of .31% to .35% depending on the part of the curve one was exposed to.  Short-term rates rose even further, as the Federal Reserve raised the Fed Funds rate for most of the period, until recently announcing a pause. The yield curve remains slightly inverted from 2 years to 10 years, with the 2 year Treasury rate at 4.81% at December 31, 2006 and the 10 year rate at 4.70%. Yield curves do not stay inverted forever, and historically have often signaled a slowdown in economic growth. It is therefore not surprising to see third quarter GDP come in at lower levels than previous quarters, as the yield curve has been flat to slightly inverted for most of calendar year 2006. In this environment, the Lehman Aggregate Bond Index provided

a positive return of 4.33% over the last twelve months. The high yield market provided an even higher return of 11.77% as measured by the Merrill Lynch High Yield Master II Index uring the same period, as investors clearly preferred higher risk, higher return assets over the last twelve months.

“Proper diversification of your investments . . . is an important component of achieving your long-term investment goals.”

Looking out into 2007, economic forecasts indicate a slight softening in the U.S. economy and the potential for lower short-term interest rates, if inflation pressures abate. One of the key drivers will be the housing market, which has slowed materially over the last six to twelve months. Time will tell if the slowdown in housing is contained to that sector of the economy, or if it is simply a precursor for a slowdown in the entire economy. The answer will shape the landscape for financial markets over the next twelve months. 

Our message, however, remains the same going into 2007. Maintain the proper perspective, have realistic expectations and ensure that your investment strategy is appropriate for your risk tolerance and time horizon.  Concepts such as asset allocation and portfolio rebalancing are critical. Proper diversification of your investments, both within and across asset ectors, is an important component of achieving your long-term investment goals. Summit Mutual Funds provides a solid foundation for diversified investment planning with choices across quity and fixed-income styles.

Thank you for choosing Summit Funds and for the trust that you have placed in us.

Best regards,

Steven R. Sutermeister

President

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Summit Mutual Funds, Inc. - Pinnacle Series

2006 ANNUAL REPORT - PORTFOLIO EXPENSES

As a contract owner of the Portfolio, you incur ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Portfolio expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The Example does not reflect expenses associated with insurance company separate accounts or your insurance contract.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from June 30, 2006 through December 31, 2006.

Actual Expenses

The first section of the table below provides information about actual account values and actual net expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio, net of fee waivers and expense reimbursements, and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses can not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

The information below is net of any applicable fee waivers and/or expense reductions, which lower expenses and increase performance. Please note that the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

				Expenses Paid *
	Beginning	Ending	Annualized	During Period
	Account Value	Account Value	Expense	July 1, 2006 to
Portfolio	July 1, 2006	December 31, 2006	Ratio	December 31, 2006

Based on Actual Return
Zenith Portfolio	$ 1,000.00	$1,147.90	0.90%	$4.87
Bond Portfolio	1,000.00	1,052.40	0.76%	3.93
S&P 500 Index Portfolio	1,000.00	1,125.10	0.39%	2.09
S&P Midcap 400 Index Portfolio	1,000.00	1,055.30	0.51%	2.64
Balanced Index Portfolio	1,000.00	1,093.00	0.60%	3.17
Nasdaq-100 Index Portfolio	1,000.00	1,114.80	0.65%	3.46
Russell 2000 Small Cap Index Portfolio Class I	1,000.00	1,090.10	0.68%	3.58
Russell 2000 Small Cap Index Portfolio Class F	1,000.00	1,088.80	0.87%	4.58
EAFE International Index Portfolio	1,000.00	1,139.80	0.95%	5.12
Lehman Aggregate Bond Index Portfolio	1,000.00	1,043.70	0.62%	3.19
Based on Hypothetical Return
(5% return before expenses)
Zenith Portfolio	$1,000.00	$1,020.67	0.90%	$4.58
Bond Portfolio	1,000.00	1,021.37	0.76%	3.87
S&P 500 Index Portfolio	1,000.00	1,023.24	0.39%	1.99
S&P Midcap 400 Index Portfolio	1,000.00	1,022.63	0.51%	2.60
Balanced Index Portfolio	1,000.00	1,022.18	0.60%	3.06
Nasdaq-100 Index Portfolio	1,000.00	1,021.93	0.65%	3.31
Russell 2000 Small Cap Index Portfolio Class I	1,000.00	1,021.78	0.68%	3.47
Russell 2000 Small Cap Index Portfolio Class F	1,000.00	1,020.82	0.87%	4.43
EAFE International Index Portfolio	1,000.00	1,020.42	0.95%	4.84
Lehman Aggregate Bond Index Portfolio	1,000.00	1,022.08	0.62%	3.16

* Expenses are equal to the Portfolio’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

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 Summit Mutual Funds, Inc. - Pinnacle Series   

 ZENITH PORTFOLIO   

Summit Zenith Portfolio - Average Annual Total Return

1-Year	5-Year	10-Year
23.12%	9.51%	8.32%

Past performance is not predictive of future results. Performance does not reflect the deduction of taxes that a shareholder may pay on fund distributions or redemption of fund shares. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower.

Portfolio Data

Managers:	James McGlynn
	Yvonne M. Bishop
Inception Date:	August 15, 1984
Total Net Assets:	$62.43 Million
Number of Equity Holdings:	59
Median Cap Size:	$41,369 (in millions)
Average Price-to-book Ratio:	2.23 x
Dividend Yield:	2.18%
Average Price-to-earnings Ratio:
Summit Pinnacle Zenith Portfolio	14.2 x
S&P 500 Index	17.1 x

Top 10 Equity Holdings

	(% of net assets)
ConocoPhillips	2.89%
Chevron Corp.	2.71%
Citigroup, Inc.	2.64%
Unilever NV - ADR	2.61%
Bank of America Corp.	2.48%
Genworth Financial, Inc.	2.47%
Tyco International Ltd.	2.31%
Home Depot, Inc.	2.30%
Honeywell International, Inc.	2.22%
UnitedHealth Group, Inc.	2.22%

 Sector Allocations

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Summit Mutual Funds, Inc. - Pinnacle Series

ZENITH PORTFOLIO

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 Summit Pinnacle Zenith Portfolio (the “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.

Managers’ Comments:

The Zenith Portfolio’s total return performance for the period beginning January 1, 2006, ending December 31, 2006, was 23.12% (before the impact of any product or contract-level fees) versus 22.25% for the Russell 1000 Value Index (the “Index”) and 15.79% for the Standard & Poor’s 500 Stock Index.

The Federal Reserve finally ceased raising the federal funds rate mid-year topping out at 5.25%. For perspective, the rate had been lowered to 1% in June 2003, and was increased seventeen times in 0.25% increments each time. Six months have elapsed with no changes to the rate, so there is constant chatter that the economy is either slowing and rates will be cut by mid-year, or inflation is heating up, the economy is too strong and rates will have to be increased. From the Federal Reserve’s perspective that is about as good as it gets - not growing too fast and not too much inflation. Housing is weaker as economists forecasted, but economic growth and employment have remained acceptable. Another factor for the Federal Reserve to consider is the influence of private equity investors acquiring companies and leveraging the assets. Apparently they think rates are low enough to acquire companies. Long-term fixed income investors have believed for some time that short rates would drop and therefore have accepted lower long-term rates. Something has to give either short interest rates will drop or bond values will have to decline to provide higher yields.

The Portfolio’s top three sector contributors to performance during the one year period ending December 31, 2006, were the Utilities, Financial Services, and Technology sectors. Sub-sector and stock selection in Utilities led to out performance relative to the Index. Our holdings were mainly focused on the Telecom group which had three out of the top ten contributors to return (Verizon, Bell South, and AT&T). Stock selection in Electrical Utilities also boosted returns. Relative out performance of the Financial Services sector can be attributed to successful stock picking in an environment in which fairly predictable rate increases turned to directional uncertainty. A significant underweight of the sector at 26% vs. 37% (as of December 31, 2006) for the Index was maintained as we believe a 37% concentration in any one sector is too high. Finally, stock selection made Technology a top contributor to performance. Cisco was the top contributor to return with strong earnings growth boosting profits.

The portfolio’s top three sector detractors to performance were the Consumer Discretionary, Energy, and Producer Durables sectors. The main reason for underperformance in the Consumer Discretionary sector was a position in Cendant. We added to this position incrementally in anticipation of the break-up of the company in the third quarter and continue to hold two of the three post-split businesses. Underperformance was partially offset by favorable stock selection in the Media sector with names such as Time Warner and News Corp benefiting from increased online advertising. An underweighting of Energy relative to the market detracted from performance, mainly as Integrated Oils outperformed. An underweight of Exploration & Production companies partially offset the portfolio’s relative underperformance in the Energy sector. Finally, Producer Durables detracted from fund performance as we were overweight in the sector as it underperformed relative to the market. An avoidance of homebuilders aided the portfolio as investors braced in for an expected slowdown in housing.

Summit Zenith Portfolio will continue to invest in companies that are temporarily out of favor and pare those which reach full valuation in the current economic environment of anticipated continued growth and more restrictive monetary policy.

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	Summit Mutual Funds, Inc. - Pinnacle Series
ZENITH PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

Computed on the basis of a share of capital stock outstanding throughout the period. Share amounts and net asset values have been adjusted as a result of the 1-for-5 reverse stock split on February 15, 2002.

	Year Ended December 31,
	2006				2005				2004				2003				2002
Net asset value, beginning of period	$	91.78			$	91.30			$	80.76			$	59.67			$	82.75
INVESTMENT ACTIVITIES:
Net investment income / (loss)		1.42				1.35				1.47				1.17				1.11
Net realized and unrealized gains / (losses)		18.02				4.57				10.33				20.01				(18.92	)
Total from Investment Activities		19.44				5.92				11.80				21.18				(17.81	)
DISTRIBUTIONS:
Net investment income		(1.42	)			(1.43	)			(1.26	)			(0.09	)			(1.39	)
Return of capital		—				—				—				—				(3.88	)
Net realized gains		(8.68	)			(4.01	)			—				—				—
Total Distributions		(10.10	)			(5.44	)			(1.26	)			(0.09	)			(5.27	)
Net asset value, end of period	$	101.12			$	91.78			$	91.30			$	80.76			$	59.67
Total return		23.12	%			6.92	%			14.77	%			35.56	%			-23.10	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net		0.88	%			0.89	%			0.91	%			0.93	%			0.93	%
Ratio of net investment income / (loss) to average net assets		1.57	%			1.49	%			1.74	%			1.68	%			1.52	%
Portfolio turnover rate		61.14	%			57.30	%			68.59	%			71.70	%			56.53	%
Net assets, end of period (000’s)	$	62,428		$52,795				$51,864				$47,104				$38,218

The accompanying notes are an integral part of the financial statements.

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Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	ZENITH PORTFOLIO

DECEMBER 31, 2006
	SHARES		VALUE
COMMON STOCKS - 97.8%
Consumer Discretionary - 14.6%
Avis Budget Group, Inc.		24,490	$	531,188
CBS Corp. - Class B		29,174		909,646
Gannett Co, Inc.		5,100		308,346
Home Depot, Inc.		35,800		1,437,728
Honda Motor Co. Ltd. - ADR		16,000		632,640
Idearc, Inc. (a) (c)		1,420		40,683
News Corp. - Class B (c)		29,500		656,670
Sony Corp. - ADR		28,300		1,212,089
Target Corp.		9,900		564,795
Time Warner, Inc.		61,100		1,330,758
Viacom Inc. - Class B (a)		23,274		954,932
Wyndham Worldwide Corp.(a)		16,980		543,700
				9,123,175
Consumer Staples - 6.3%
Altria Group, Inc.		14,700		1,261,554
CVS Corp.		33,800		1,044,758
Unilever NV - ADR		59,700		1,626,825
				3,933,137
Energy - 13.6%
Chevron Corp.		23,040		1,694,131
ConocoPhillips		25,042		1,801,772
Devon Energy Corp.		20,500		1,375,140
Exxon Mobil Corp.		14,600		1,118,798
Nabors Industries Ltd. (a)(c)		39,100		1,164,398
Royal Dutch Shell PLC - ADR		18,900		1,337,931
				8,492,170
Financials - 25.6%
AllianceBernstein Holding LP		17,100		1,374,840
The Allstate Corp.		15,700		1,022,227
Bank of America Corp.		28,984		1,547,456
The Bank of New York Co., Inc.		27,400		1,078,738
Berkshire Hathaway, Inc.(a)		190		696,540
Capital One Financial Corp.		11,400		875,748
Citigroup, Inc.		29,600		1,648,720
Fifth Third Bancorp (c)		32,000		1,309,760
Genworth Financial, Inc. - Class A		45,000		1,539,450
Hartford Financial Services Group, Inc.		7,100		662,501
JPMorgan Chase & Co.		19,004		917,893
Legg Mason, Inc.		8,000		760,400
Morgan Stanley		9,200		749,156
New York Community Bancorp, Inc. (c)		65,900		1,060,990
The St. Paul Travelers Cos., Inc.		13,500		724,815
				15,969,234
Health Care - 6.0%
GlaxoSmithKline PLC - ADR		23,800		1,255,688

	SHARES		VALUE
Health Care - 6.0% (Continued)
Pfizer, Inc.		43,000	$	1,113,700
UnitedHealth Group, Inc.		25,800		1,386,234
				3,755,622
Industrials - 9.3%
FedEx Corp.		8,300		901,546
General Electric Co.		32,200		1,198,162
Honeywell International, Inc.		30,700		1,388,868
Ingersoll-Rand Co. Ltd. - Class A		22,200		868,686
Tyco International Ltd.		47,400		1,440,960
				5,798,222
Materials - 6.1%
The Dow Chemical Co.		32,300		1,290,062
EI Du Pont de Nemours & Co.		12,900		628,359
Newmont Mining Corp.		27,600		1,246,140
Phelps Dodge Corp.		5,200		622,544
				3,787,105
Technology - 7.2%
Cisco Systems, Inc. (a)		27,400		748,842
International Business Machines Corp.		11,700		1,136,655
Motorola, Inc.		67,100		1,379,576
Nokia OYJ - ADR		61,000		1,239,520
				4,504,593
Utilities - 9.1%
AT&T, Inc.		33,100		1,183,325
Citizens Communications Co. (c)		32,600		468,462
Dominion Resources, Inc.		12,100		1,014,464
Duke Energy Corp.		38,544		1,280,046
The Southern Co.		8,200		302,252
Sprint Corp.		20,500		387,245
Verizon Communications, Inc.		28,400		1,057,616
				5,693,410
TOTAL COMMON STOCKS
(Cost $51,175,163)				61,056,668
SHORT TERM INVESTMENTS - 2.5%
Money Market Funds - 2.5%
Northern Institutional Diversified Assets Portfolio		1,533,263		1,533,263
TOTAL SHORT TERM INVESTMENTS
(Cost $1,533,263)				1,533,263
Total Investments
(Cost $52,708,426) (b) - 100.3%				62,589,931
Northern Institutional Liquid Assets Portfolio (d) - 6.4%				4,014,195
Liabilities in Excess of Other Assets - (6.7)%				(4,175,874	)
TOTAL NET ASSETS - 100.0%			$	62,428,252

ADR American Depository Receipt
(a)	Non Income Producing
(b)	For federal income tax purposes, cost is $52,729,221 and gross unrealized appreciation and depreciation of securities as of December 31, 2006, was $10,360,156 and $(499,446) respectively, with a net appreciation / (depreciation) of $9,860,710.
(c)	All or a portion of the security is out on loan.
(d)	This security was purchased with cash collateral held from securities lending. The market value of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted is $4,180,258, $4,014,195, and $315,804, respectively.

The accompanying notes are in integral part of the financial statements.

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	Summit Mutual Funds, Inc. - Pinnacle Series
ZENITH PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS
Investments in securities, at value	$	62,589,931
Collateral for securities loaned,
at fair value		4,014,195
Receivables:
Securities sold		1,145,405
Shares sold		20,608
Interest and dividends		84,146
Prepaid expenses and other		1,986
		67,856,271
LIABILITIES
Payables:
Investment securities purchased		1,339,864
Payable upon return of securities loaned		4,014,195
Shares redeemed		3,510
Advisory fees		33,560
Professional fees		16,498
Fund accounting fees		7,357
Administration fees		5,244
Custodian fees		1,262
Other accrued expenses		6,529
		5,428,019
NET ASSETS*
Paid-in capital		46,696,518
Accumulated undistributed net
investment income / (loss)		742,912
Accumulated net realized gain / (loss)
on investments		5,107,317
Net unrealized appreciation / (depreciation)
on investments		9,881,505
	$	62,428,252
Investments at cost	$	52,708,426
Shares authorized ($.10 par value)		40,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$62,428,252	617,338	$101.12

* FEDERAL TAX DATA AS OF DECEMBER 31, 2006
Percentage of ordinary distributions designated as
qualified dividend income		52.46%
Dividends received deduction for corporate shareholders		46.79%
Undistributed ordinary income	$	2,186,210
Undistributed long-term gains	$	3,684,814
Unrealized appreciation	$	9,860,710

STATEMENT OF OPERATIONS
For the year ended December 31, 2006
INVESTMENT INCOME
Dividends	$	1,385,285
Foreign dividend taxes withheld		(10,660	)
Other income		4,519
		1,379,144
EXPENSES
Advisory fees		360,188
Administration fees		56,279
Fund accounting fees		23,603
Professional fees		21,298
Transfer agent fees		11,307
Directors’ fees		6,873
Custodian fees		4,417
Shareholder reporting fees		4,562
Other expenses		5,476
		494,003
NET INVESTMENT INCOME / (LOSS)		885,141
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		5,134,324
Net change in unrealized appreciation /
(depreciation) on investments		5,822,502
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		10,956,826
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	11,841,967

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory	Administration
Fee	Fee
0.64%	0.10%

The accompanying notes are an integral part of the financial statements.

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Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL STATEMENTS	ZENITH PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	885,141		$	777,139
Net realized gain / (loss) on investments		5,134,324			4,910,752
Net change in unrealized appreciation / (depreciation) on investments		5,822,502			(2,172,750	)
		11,841,967			3,515,141
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(807,599	)		(815,280	)
Net realized gain on investments		(4,937,705	)		(2,284,000	)
		(5,745,304	)		(3,099,280	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		3,345,499			3,640,457
Reinvestment of distributions		5,745,304			3,099,280
Payments for shares redeemed		(5,554,370	)		(6,224,313	)
		3,536,433			515,424
NET INCREASE / (DECREASE) IN NET ASSETS		9,633,096			931,285
NET ASSETS
Beginning of period		52,795,156			51,863,871
End of period	$	62,428,252		$	52,795,156
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	742,912		$	692,966

FUND SHARE TRANSACTIONS
Sold	36,256			41,288
Reinvestment of distributions	66,775			36,266
Redeemed	(60,922		)	(70,395		)
Net increase / (decrease) from fund share transactions	42,109			7,159
TOTAL COST OF PURCHASES OF:
Common Stocks	$	33,741,714		$	29,153,524
	$	33,741,714		$	29,153,524
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	35,520,798		$	30,407,042
	$	35,520,798		$	30,407,042
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	2,263,647		$	1,053,031
Long-term capital gains		3,481,657			2,046,249
	$	5,745,304		$	3,099,280

The accompanying notes are an integral part of the financial statements.

8

Summit Mutual Funds, Inc. - Pinnacle Series   

BOND PORTFOLIO   

Summit Bond Portfolio - Average Annual Total Return
1-Year	5-Year	10-Year
5.25%	5.11%	5.58%

Past performance is not predictive of future results. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower.

Portfolio Data

Managers:	Gary R. Rodmaker
	Michael J. Schultz
	D. Scott Keller
Inception Date:	August 15, 1984
Total Net Assets:	$28.35 Million
Number of Fixed
Income Holdings:	126
Average Duration:	4.41 years
Average Maturity:	13.00 years
Average Credit Quality:	A2/A
30-day SEC Yield:	5.59%

Quality Breakdown

	(% of portfolio)
AAA	40%
AA	4%
A	10%
BBB	31%
BB	7%
B	7%
CCC	1%

Sector Allocations

9

Summit Mutual Funds, Inc. - Pinnacle Series

BOND PORTFOLIO

Objective - Seeks a high level of current income, as is consistent with a reasonable investment risk, by investing in long-term, fixed-income, investment-grade corporate bonds.

Strategy - The Summit Pinnacle Bond Portfolio (the “Portfolio”) will invest at least 80% of its asset value in fixed income securities. The Portfolio will normally invest 75% of the value of its assets in publicly traded straight debt securities that fall 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, preferred stock and other securities.

Managers’ Comments:

The Summit Pinnacle Bond Portfolio had a total return of 5.25% (after waivers and reimbursements, but before the impact of any product or contract-level fees) for the year ended December 31, 2006, compared to a total return of 4.33% for the Lehman Brothers Aggregate Index (the “Index”).

The bond market often sent mixed signals to bond investors during 2006. After 17 consecutive increases in short-term interest rates, the Federal Reserve paused at mid-year, expecting the lag effect of past increases to slow economic growth and curb inflationary pressures. Long-term interest rates responded by peaking in mid-year, then rallying sharply in the 3rd quarter before increasing to end the year. Year over year, interest rates were higher across the maturity spectrum with short-term rates experiencing the largest increases. Throughout much of 2006, there was an inverted yield curve - where short-term interest rates are higher than long-term interest rates. In the past, an inverted yield curve has often preceded an economic recession. However, recent economic reports suggest a stronger economy than anticipated. Given the mixed signals, bond investors enter 2007 divided about prospects for the economy.

The high yield sector provided the largest positive contribution to the Portfolio’s performance over the past year. The mortgage sector, lead by non-agency mortgage securities, also contributed to the Portfolio’s out performance. Mortgage-backed securities outperformed both Treasury bonds and investment-grade corporate bonds during the period. The Portfolio’s overweighting of investment-grade corporate bonds had little impact, positive or negative, on the performance of the Portfolio, although exposure to BBB rated credits had a slight positive impact during the period. Sectors that underperformed during the period were long and intermediate Treasury securities, as interest rates rose during the period

Summit continues to believe that our long-term strategy of overweighting corporate and mortgage-backed securities, while underweighting Treasury and Agency securities should result in value-added opportunities for fixed-income investors. In addition, Summit believes that by maintaining a moderate allocation to high yield securities, the Portfolio’s returns should be enhanced over time.

10

	Summit Mutual Funds, Inc. - Pinnacle Series
BOND PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

Computed on the basis of a share of capital stock outstanding throughout the period. Share amounts and net asset values have been adjusted as a result of the 1-for-5 reverse stock split on February 15, 2002.

						Year Ended December 31,
		2006				2005				2004				2003				2002
Net asset value, beginning of period		$	47.07			$	48.26			$	48.41			$	47.93			$	48.15
INVESTMENT ACTIVITIES:
Net investment income / (loss)			2.52				2.42				1.67				3.25				2.70
Net realized and unrealized gains / (losses)			(0.13	)			(1.42	)			0.36				0.56				(0.04	)
Total from Investment Activities			2.39				1.00				2.03				3.81				2.66
DISTRIBUTIONS:
Net investment income			(2.39	)			(2.19	)			(2.18	)			(3.33	)			(2.88	)
Total Distributions			(2.39	)			(2.19	)			(2.18	)			(3.33	)			(2.88	)
Net asset value, end of period		$	47.07			$	47.07			$	48.26			$	48.41			$	47.93
Total return			5.25	%			2.14	%			4.29	%			8.21	%			5.73	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(1)			0.75	%			0.75	%			0.75	%			0.75	%			0.76	%
Ratio of expenses to average net assets - gross			0.81	%			0.83	%			0.82	%			0.81	%			0.85	%
Ratio of net investment income / (loss) to average net assets			5.23	%			5.10	%			4.05	%			6.72	%			5.86	%
Portfolio turnover rate			79.22	%			32.96	%			66.03	%	109.52%						54.27	%
Net assets, end of period (000’s)	$28,349				$30,783				$36,300				$37,197				$35,415

⁽¹⁾ Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

The accompanying notes are an integral part of the financial statements.

11

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	BOND PORTFOLIO

DECEMBER 31, 2006
	SHARES		VALUE
COMMON STOCKS - 0.2%
Consumer Discretionary - 0.1%
Avado Brands, Inc. (a) (g) (i)		1,601	$	19,212
Intermet Corp. (a) (g)		1,574		9,442
				28,654
Energy - 0.1%
Elk Horn Coal Co. LLC (a) (i)		66,150		38,374
TOTAL COMMON STOCKS
(Cost $86,025)				67,028
PREFERRED STOCKS - 0.6%
Consumer Discretionary - 0.6%
ION Media Networks, Inc. 14.25% Payment-in-Kind Dividend		22		165,670
TOTAL PREFERRED STOCKS
(Cost $149,350)				165,670
		PRINCIPAL AMOUNT		VALUE
ASSET BACKED SECURITIES - 2.8%
America West Airlines, Inc. - AMBAC Insured
Series 2001-1, 7.100%, 10/02/2022	$	200,460	$	211,987
Asset Backed Funding Certificates
Series 2005-AQ1, 5.240%, 11/25/2034		170,000		164,863
Centex Home Equity
Series 2001-B, 7.360%, 07/25/2032		51,295		51,108
JET Equipment Trust
Series 1995-B, 7.630%, 02/15/2015 (b) (h) (i)		110,813		82,130
Stingray Pass-Through Trust
Series 2005, 5.902%, 01/12/2015 (b)		300,000		277,500
TOTAL ASSET BACKED SECURITIES
(Cost $796,853)				787,588
CORPORATE BONDS - 47.9%
Consumer Discretionary - 10.4%
Cadmus Communications Corp.
8.375%, 06/15/2014		63,000		62,685
Cox Communications, Inc.
5.450%, 12/15/2014		361,000		351,698
DaimlerChrysler North America Holding Corp.
6.500%, 11/15/2013		250,000		256,676
EchoStar DBS Corporation
6.625%, 10/01/2014		125,000		121,875
Ethan Allen Global, Inc.
5.375%, 10/01/2015 (e)		300,000		284,040
Home Depot, Inc.
5.250%, 12/16/2013		100,000		99,256
Idearc, Inc.
8.000%, 11/15/2016 (b)		100,000		101,500
Intcomex, Inc.
11.750%, 01/15/2011 (b)		125,000		123,750
MDC Holdings, Inc.
5.500%, 05/15/2013		150,000		143,416
Mohawk Industries, Inc.
6.125%, 01/15/2016 (e)		250,000		248,201
NVR, Inc.
5.000%, 06/15/2010 (e)		210,000		204,855

		PRINCIPAL AMOUNT		VALUE
Consumer Discretionary - 10.4% (Continued)
Penton Media, Inc.
10.375%, 06/15/2011	$	187,000	$	197,051
R.H. Donnelley Corp.
6.875%, 01/15/2013		125,000		119,844
Rental Services Corp.
9.500%, 12/01/2014 (b) (e)		32,000		33,040
TCI Communications, Inc.
8.750%, 08/01/2015		340,000		402,147
Thomson Corp.
6.200%, 01/05/2012		200,000		205,837
				2,955,871
Consumer Staples - 0.7%
Constellation Brands, Inc.
7.250%, 09/01/2016 (e)		125,000		128,437
Del Monte Corp.
6.750%, 02/15/2015 (e)		62,000		61,380
				189,817
Energy - 6.9%
Canadian Oil Sands Ltd.
5.800%, 08/15/2013 (b)		300,000		299,848
Chesapeake Energy Corp.
7.625%, 07/15/2013 (e)		125,000		131,719
6.625%, 01/15/2016		125,000		124,219
Complete Production Services
8.000%, 12/15/2016 (b)		125,000		128,125
Elk Horn Coal Co. LLC
Class A 6.500%, 01/01/2014 (i)		10,975		10,975
Class B 6.500%, 01/01/2014 Payment-in-Kind Interest (i)		6,091		6,091
Energy Transfer Partners LP
5.950%, 02/01/2015		300,000		301,701
Northwest Pipeline Corp.
8.125%, 03/01/2010		63,000		65,599
Peabody Energy Corp.
7.375%, 11/01/2016		50,000		53,250
Pemex Project Funding Master Trust
8.000%, 11/15/2011 (c) (e)		250,000		275,000
Plains All American Pipeline LP
4.750%, 08/15/2009		250,000		244,769
SemGroup LP
8.750%, 11/15/2015 (b) (e)		63,000		63,315
Tesoro Corp.
6.625%, 11/01/2015		125,000		124,062
Whiting Petroleum Corp.
7.250%, 05/051/2013		126,000		126,315
				1,954,988
Financials - 15.5%
American Express Co.
6.800%, 09/01/2066 (c)		230,000		245,258
AXA SA
5.130%, 02/06/2049 (c)		450,000		385,763
Capital One Financial Corp.
5.700%, 09/15/2011 (e)		230,000		233,409
Colonial Realty LP
6.050%, 09/01/2016 (e)		230,000		232,924
ConocoPhillips Canada Funding Co.
5.300%, 04/15/2012 (e)		230,000		229,832

The accompanying notes are an integral part of the financial statements.

12

	Summit Mutual Funds, Inc. - Pinnacle Series
BOND PORTFOLIO	SCHEDULE OF INVESTMENTS

	PRINCIPAL AMOUNT		VALUE
Financials - 15.5% (Continued)
Ford Motor Credit Co.
5.800%, 01/12/2009	$	94,000	$	92,293
8.110%, 01/13/2012 (c)		63,000		62,428
8.000%, 12/15/2016 (e)		31,000		30,633
Genworth Financial, Inc.
6.150%, 11/15/2066 (c)		150,000		149,789
Health Care Property Investors, Inc.
5.650%, 12/15/2013		230,000		226,900
Health Care REIT, Inc.
8.000%, 09/12/2012		250,000		274,797
Host Marriott LP
6.750%, 06/01/2016 (e)		125,000		125,156
iStar Financial, Inc.
5.950%, 10/15/2013 (b)		230,000		231,158
Landsbanki Islands HF
6.100%, 08/25/2011 (b) (e)		230,000		233,834
Nationwide Health Properties, Inc.
6.000%, 05/20/2015		300,000		296,100
North Front Pass-through Trust
5.810%, 12/15/2024 (b) (c) (e)		340,000		334,730
NXP BV/NXP Funding LLC
7.875%, 10/15/2014 (b) (e)		75,000		77,531
PartnerRe Finance II
6.440%, 12/01/2066 (c)		150,000		150,554
R.H. Donnelley Finance Corp I
10.875%, 12/15/2012 (b) (e)		63,000		68,670
TDS Investor Corp.
11.875%, 09/01/2016 (b) (e)		125,000		128,125
USF&G Capital II
8.470%, 01/10/2027		240,000		250,412
Ventas Realty LP
7.125%, 06/01/2015		37,000		38,850
WMC Finance USA
5.125%, 05/15/2013		200,000		196,552
Xstrata Finance Canada Ltd.
5.800%, 11/15/2016 (b)		100,000		99,710
				4,395,408
Health Care - 0.3%
DaVita, Inc.
7.250%, 03/15/2015 (e)		31,000		31,620
Genesis Healthcare Corp.
8.000%, 10/15/2013		62,000		64,635
				96,255
Industrials - 3.4%
Ametek, Inc.
7.200%, 07/15/2008		250,000		255,261
Caterpillar, Inc.
5.700%, 08/15/2016 (e)		230,000		233,211
DRS Technologies, Inc.
7.625%, 02/01/2018		32,000		32,960
Joy Global, Inc.
6.000%, 11/15/2016 (b)		225,000		223,655
Raytheon Co.
5.500%, 11/15/2012		230,000		231,443
				976,530

	PRINCIPAL AMOUNT		VALUE
Information Technology - 0.4%
Iron Mountain, Inc.
8.750%, 07/15/2018 (e)	$	25,000	$	26,500
Western Union Co.
5.930%, 10/01/2016 (b)		85,000		84,186
				110,686
Materials - 3.4%
Boise Cascade LLC
8.249%, 10/15/2012 (c)		32,000		32,080
Georgia-Pacific Corp.
7.125%, 01/15/2017 (b) (e)		125,000		124,688
Lubrizol Corp.
7.250%, 06/15/2025		300,000		324,300
Lyondell Chemical Co.
8.250%, 09/15/2016 (e)		125,000		131,250
Reichhold Industries, Inc.
9.000%, 08/15/2014 (b)		125,000		122,500
Reliance Steel & Aluminum Co.
6.200%, 11/15/2016 (b)		230,000		228,312
				963,130
Telecommunication Services - 3.2%
America Movil SAB de CV
5.500%, 03/01/2014		250,000		244,380
Citizens Communications Co.
6.250%, 01/15/2013 (e)		125,000		122,656
Qwest Communications International, Inc.
7.500%, 02/15/2014 (c) (e)		125,000		128,750
Telefonica Emisones SAU
6.421%, 06/20/2016		230,000		237,272
TELUS Corp.
8.000%, 06/01/2011		150,000		164,031
				897,089
Utilities - 3.7%
The AES Corp.
9.375%, 09/15/2010		125,000		135,781
Calpine Corp.
9.875%, 12/01/2011 (b) (e) (h)		125,000		135,937
Edison Mission Energy
7.500%, 06/15/2013 (b) (e)		125,000		130,625
FPL Group Capital, Inc.
6.350%, 10/01/2066 (c)		230,000		233,171
ITC Holdings Corp.
6.375%, 09/30/2036 (b)		230,000		229,363
Kern River Funding Corp.
6.676%, 07/31/2016 (b)		53,415		56,242
LCI International, Inc.
7.250%, 06/15/2007		62,000		62,155
Nevada Power Co.
6.500%, 04/15/2012		31,000		31,824
Sierra Pacific Power Co.
6.250%, 04/15/2012		31,000		31,477
				1,046,575
TOTAL CORPORATE BONDS
(Cost $13,502,683)				13,586,349

The accompanying notes are an integral part of the financial statements.

13

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	BOND PORTFOLIO

	PRINCIPAL AMOUNT		VALUE
MORTGAGE BACKED SECURITIES - 33.4%
Banc of America Alternative Loan Trust
Series 2003-6, 4.750%, 08/25/2018 (c)	$	298,931	$	274,487
Series 2003-8, 4.750%, 10/25/2018 (c)		126,175		115,093
Banc of America Funding Corp.
Series 2003-2, 6.377%, 06/25/2032 (c)		204,589		206,931
Banc of America Mortgage Securities
Series 2004-7, 4.797%, 08/25/2019 (c)		274,989		255,262
Series 2001-4, 6.750%, 04/20/2031 (c)		194,705		194,283
Series 2002-G, 7.124%, 07/20/2032 (c)		73,463		74,384
Series 2004-6, 5.500%, 07/25/2034 (c)		171,036		169,356
Chase Commercial Mortgage Securities Corp.
Series 97-2, 6.600%, 12/19/2029		627,885		632,798
Citicorp Mortgage Securities, Inc.
Series 2003-10, 4.500%, 11/25/2018		871,734		836,592
Fannie Mae Pool
Pool #254438, 5.500%, 08/01/2009		104,065		104,622
Pool #555638, 5.000%, 11/01/2009		261,615		260,907
Pool #254643, 5.500%, 01/01/2010		137,195		137,928
Pool #555520, 5.500%, 02/01/2010		54,443		54,734
Pool #254340, 5.500%, 05/01/2012		109,495		109,606
Pool #545015, 6.000%, 06/01/2016		114,490		116,194
Pool #727360, 5.500%, 08/01/2018		717,881		719,252
Series 94-019, 5.000%, 01/25/2024		108,744		108,058
Pool #481582, 6.500%, 02/01/2029		46,805		48,041
Series 2002-48B, 6.500%, 10/25/2031		1,441,597		1,451,537
Freddie Mac
Series 2810, 5.500%, 06/15/2034		414,430		412,855
Freddie Mac (Gold) Pool
Pool #E9-6460, 5.000%, 05/01/2018		125,598		123,672
Pool #E9-9160, 4.500%, 09/01/2018		1,887,921		1,823,944
Pool #C7-6658, 5.000%, 02/01/2033		75,194		72,682
Ginnie Mae I Pool
Pool #446760X, 6.500%, 10/15/2028		68,486		70,471
GMAC Mortgage Corp Loan Trust
Series 2004-J1, 5.250%, 04/25/2034		142,208		141,067
MASTR Asset Securitization Trust
Series 2003-9, 5.500%, 10/25/2033		62,477		62,081

		PRINCIPAL AMOUNT		VALUE
MORTGAGE BACKED SECURITIES - 33.4% (Continued)
Residential Accredit Loans, Inc.
Series 2002-QS16, 5.750%, 10/25/2017	$	159,432	$	156,863
Residential Funding Mortgage Securities
Series 2003-S20, 4.750%, 12/25/2018		292,616		274,075
Salomon Brothers Mortgage Securities VII
Series 2003-HYB1, 4.118%, 09/25/2033		191,861		187,421
Structured Asset Securities Corp.
Series 2003-20, 5.387%, 07/25/2033		286,664		272,469
TOTAL MORTGAGE BACKED SECURITIES
(Cost $9,691,309)				9,467,665
U.S. TREASURY OBLIGATIONS - 12.2%
U.S. Treasury Notes - 12.2%
3.125%, 01/31/2007 (e)		80,000		79,977
4.000%, 11/15/2012 (e)		900,000		868,957
3.875%, 02/15/2013 (e)		725,000		693,876
3.625%, 05/15/2013 (e)		375,000		353,335
4.250%, 11/15/2014 (e)		750,000		727,558
4.875%, 08/15/2016 (e)		725,000		733,666
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $3,494,863)				3,457,369
		SHARES		VALUE
SHORT TERM INVESTMENTS - 1.9%
Money Market Funds - 1.9%
Northern Institutional Diversified Assets Portfolio		546,396	$	546,396
TOTAL SHORT TERM INVESTMENTS
(Cost $546,396)				546,396
Total Investments
(Cost $28,267,479) (d) - 99.0%				28,078,065
Northern Institutional Liquid Assets Portfolio (f) - 22.6%				6,396,735
Liabilities in Excess of Other Assets - (21.6)%				(6,125,616	)
TOTAL NET ASSETS - 100.0%				$28,349,184

(a)	Non income producing security.
(b)	Security exempt from registration under Rule 144(a) of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(c)	Variable rate security.
(d)	For federal income tax purposes, cost is $28,292,281 and gross unrealized appreciation and depreciation of securities as of December 31, 2006 was $235,880 and ($450,096), respectively, with a net appreciation / (depreciation) of ($214,216).
(e)	All or a portion of the security is out on loan.
(f)	This security was purchased with cash collateral held from securities lending. The market value of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted is $6,490,071, $6,396,735, and $326,064, respectively.
(g)	Security is considered illiquid. The aggregate value of such securities is $28,654 or 0.1% of total net assets.
(h)	Security in default.
(i)	Valued in good faith under procedures adopted by the Board of Directors.

The accompanying notes are in integral part of the financial statements.

14

	Summit Mutual Funds, Inc. - Pinnacle Series
BOND PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS
Investments in securities, at value	$	28,078,065
Collateral for securities loaned,
at fair value		6,396,735
Receivables:
Interest and dividends		312,034
Shares sold		9,785
Prepaid expenses and other		1,084
		34,797,703
LIABILITIES
Payables:
Payable upon return of securities loaned		6,396,735
Professional fees		17,946
Advisory fees		16,210
Fund accounting fees		8,977
Administration fees		2,417
Custodian fees		1,290
Directors’ fees		28
Other accrued expenses		4,916
		6,448,519
NET ASSETS*
Paid-in capital		34,722,308
Accumulated undistributed net investment
income / (loss)		215,068
Accumulated net realized gain / (loss)
on investments		(6,398,778	)
Net unrealized appreciation / (depreciation)
on investments		(189,414	)
	$	28,349,184
Investments at cost	$	28,267,479
Shares authorized ($.10 par value)		30,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
Share Class	Net Assets	Shares Outstanding
Class I	$28,349,184	602,262	$47.07

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2006
	Percentage of ordinary distributions designated as
	qualified dividend income		0.23%
	Dividends received deduction for corporate shareholders		0.23%
	Undistributed ordinary income	$	215,068
	Post October capital loss carryforward	$	(31,527)

	Capital Loss Carryforward
	Expiring December 31:
2008	2009	2010	2012	2014
$(4,632,319)	$(119,441)	$(1,273,958)	$(75,650)	$(241,081)

STATEMENT OF OPERATIONS
For the year ended December 31, 2006
INVESTMENT INCOME
Interest	$	1,694,482
Dividends		19,817
Other income		4,126
		1,718,425
EXPENSES
Advisory fees		134,898
Administration fees		29,702
Fund accounting fees		27,626
Professional fees		18,210
Transfer agent fees		10,158
Custodian fees		3,944
Directors’ fees		3,229
Shareholder reporting fees		2,073
Other expenses		3,046
		232,886
Reimbursements and waivers		(16,623	)
		216,263
NET INVESTMENT INCOME / (LOSS)		1,502,162
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		(271,614	)
Net change in unrealized appreciation /
(depreciation) on investments		218,274
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		(53,340	)
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	1,448,822

TRANSACTIONS WITH AFFILIATES:
	Percent of Current
	Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit(1)	and Waivers
0.47%	0.10%	0.75%	$16,623

(1) The advisor has agreed to temporarily waive administration fees for the Bond Portfolio, to the extent that the Portfolio’s total expense ratio exceeds .75%.

The accompanying notes are an integral part of the financial statements.

15

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL STATEMENTS	BOND PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	1,502,162		$	1,719,705
Net realized gain / (loss) on investments		(271,614	)		12,263
Net change in unrealized appreciation / (depreciation) on investments		218,274			(1,033,336	)
		1,448,822			698,632
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(1,461,411	)		(1,532,165	)
		(1,461,411	)		(1,532,165	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		2,205,561			2,090,905
Reinvestment of distributions		1,461,411			1,532,165
Payments for shares redeemed		(6,087,857	)		(8,306,480	)
		(2,420,885	)		(4,683,410	)
NET INCREASE / (DECREASE) IN NET ASSETS		(2,433,474	)		(5,516,943	)
NET ASSETS
Beginning of period		30,782,658			36,299,601
End of period	$	28,349,184		$	30,782,658
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	215,068		$	148,521

FUND SHARE TRANSACTIONS
Sold	47,186			43,801
Reinvestment of distributions	31,501			32,469
Redeemed	(130,332		)	(174,528		)
Net increase / (decrease) from fund share transactions	(51,645		)	(98,258		)
TOTAL COST OF PURCHASES OF:
Common Stocks	$	208,555		$	395,207
U.S. Government Securities		4,426,366			1,399,196
Corporate Bonds		17,678,086			9,066,077
	$	22,313,007		$	10,860,480
TOTAL PROCEEDS FROM SALES OF:
Preferred and Common Stocks	$	438,209		$	100,249
U.S. Government Securities		6,207,390			4,282,208
Corporate Bonds		18,009,936			11,283,269
	$	24,655,535		$	15,665,726
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	1,461,411		$	1,532,165
	$	1,461,411		$	1,532,165

The accompanying notes are an integral part of the financial statements.

16

Summit Mutual Funds, Inc. - Pinnacle Series   

S&P 500 INDEX PORTFOLIO   

Summit S&P 500 Index Portfolio - Average Annual Total Return
1-Year	5-Year	10-Year
15.36%	5.70%	7.98%

Past performance is not predictive of future results. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower.

Portfolio Data

Managers:	Gary R. Rodmaker
	Nick J. Kotsonis
	Kevin P. Aug
Inception Date:	December 29, 1995
Total Net Assets:	$309.02 Million
Number of Equity Holdings:	500
Median Cap Size:	$13,233 (in millions)
Average Price-to-book Ratio:	2.87 x
Dividend Yield:	1.80%

Top 10 Equity Holdings

	(% of net assets)
Exxon Mobil Corp.	3.52%
General Electric Co.	3.01%
Citigroup, Inc.	2.16%
Microsoft Corp.	2.04%
Bank of America Corp.	1.89%
Procter & Gamble Co.	1.60%
Johnson & Johnson	1.51%
Pfizer, Inc.	1.47%
American International Group, Inc.	1.46%
Altria Group, Inc.	1.41%

Sector Allocations

17

Summit Mutual Funds, Inc. - Pinnacle Series

S&P 500 INDEX PORTFOLIO

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 Price Index (the “Index”).

Strategy - The Summit Pinnacle S&P 500 Index Portfolio (the “Portfolio”) will attempt to achieve, in both rising and falling markets, a correlation of at least 95% between the total return of its net assets before expenses and the total return of the Index.

Managers’ Comments:

For the year ended December 31, 2006, the Summit S&P 500 Index Portfolio’s total return was 15.36% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 15.79% total return for the S&P 500 Index. The difference of 0.43% is referred to as “tracking error” and is largely attributed to the Portfolio’s operating expenses. These expenses represent the Portfolio’s costs for advisory, administration, accounting, custody and other services. The remaining difference can be caused by a number of factors, including the timing and size of cash flows into and out of the Portfolio; brokers’ commissions or other trading costs; and holding security positions in amounts that are different than the weightings in the Index, among others. While an exact replication of the capitalization weightings of securities in the Index is not feasible, the Portfolio’s objectives and strategies call for a correlation of at least 95% between the Portfolio’s pre-expense total return and that of the Index. The Portfolio achieved this level of correlation for the period presented.

“Standard & Poor’s”, “S&P”, “S&P 500”, “Standard & Poor’s 500”, “500”, “S&P MidCap 400 Index”, and “Standard & Poor’s MidCap 400 Index” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Summit Mutual Funds, Inc. The product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the product.

18

Summit Mutual Funds, Inc. - Pinnacle Series
S&P 500 INDEX PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

Computed on the basis of a share of capital stock outstanding throughout the period. Share amounts and net asset values have been adjusted as a result of the 1-for-5 reverse stock split on February 15, 2002.

				Year Ended December 31,
	2006			2005			2004			2003			2002
Net asset value, beginning of period	$	82.85		$	80.48		$	73.21		$	57.82		$	75.15
INVESTMENT ACTIVITIES:
Net investment income / (loss)		1.40			1.17			1.16(2	)		0.81			0.69
Net realized and unrealized gains / (losses)		11.19			2.39			6.41			15.17			(17.53	)
Total from Investment Activities		12.59			3.56			7.57			15.98			(16.84	)
DISTRIBUTIONS:
Net investment income		(1.25	)		(1.19	)		(0.30	)		(0.59	)		(0.38	)
Net realized gains		—			—			—			—			(0.11	)
Total Distributions		(1.25	)		(1.19	)		(0.30	)		(0.59	)		(0.49	)
Net asset value, end of period	$	94.19		$	82.85		$	80.48		$	73.21		$	57.82
Total return		15.36	%		4.52	%		10.37	%		27.98	%		-22.55	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(1)		0.39	%		0.39	%		0.40	%		0.52	%		0.57	%
Ratio of expenses to average net assets - gross		0.43	%		0.49	%		0.51	%		0.54	%		0.61	%
Ratio of net investment income / (loss) to average net assets		1.56	%		1.49	%		1.69	%		1.25	%		1.04	%
Portfolio turnover rate		3.42	%		5.73	%		1.59	%		0.84	%		10.51	%
Net assets, end of period (000’s)	$	309,019		$	290,666		$	279,875		$	79,766		$	64,338

⁽¹⁾ Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

⁽²⁾ Per share amounts are based on average shares outstanding.

The accompanying notes are an integral part of the financial statements.

19

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	S&P 500 INDEX PORTFOLIO

DECEMBER 31, 2006
	SHARES		VALUE
COMMON STOCKS - 100.1%
Consumer Discretionary - 10.9%
Amazon.Com, Inc. (a)		7,453	$	294,095
Apollo Group, Inc. (a) (c)		3,373		131,446
Autonation, Inc. (a)		3,577		76,262
Autozone, Inc. (a)		1,291		149,188
Bed Bath & Beyond, Inc. (a)		6,806		259,309
Best Buy Co., Inc.		9,703		477,291
Big Lots, Inc. (a) (c)		2,751		63,053
Black & Decker Corp.		1,833		146,585
Brunswick Corp. (c)		2,281		72,764
Carnival Corp.		10,468		513,455
CBS Corp.		18,625		580,727
Centex Corp.		2,927		164,702
Circuit City Stores, Inc.		3,629		68,878
Clear Channel Communications, Inc.		12,142		431,527
Coach, Inc. (a)		9,278		398,583
Comcast Corp. - Class A (a)		50,982		2,158,068
D.R. Horton, Inc.		6,566		173,933
Darden Restaurants, Inc. (c)		3,152		126,616
Dillard’s, Inc. - Class A (c)		1,491		52,140
The DIRECTV Group, Inc. (a)		18,520		461,889
Dollar General Corp. (c)		7,514		120,675
Dow Jones & Co., Inc. (c)		1,488		56,544
The E.W. Scripps Company		2,100		104,874
Eastman Kodak Co. (c)		6,923		178,613
eBay, Inc. (a)		28,465		855,943
Family Dollar Stores, Inc.		3,742		109,753
Federated Department Stores, Inc.		13,341		508,692
Ford Motor Co. (c)		45,272		339,993
Fortune Brands, Inc. (c)		3,537		302,024
Gannett Co., Inc.		5,731		346,496
The Gap, Inc.		13,264		258,648
General Motors Corp. (c)		13,635		418,867
Genuine Parts Co.		4,169		197,736
The Goodyear Tire & Rubber Co. (a) (c)		4,275		89,732
H&R Block, Inc. (c)		7,912		182,292
Harley-Davidson, Inc.		6,476		456,364
Harman International Industries, Inc.		1,680		167,849
Harrah’s Entertainment, Inc.		4,454		368,435
Hasbro, Inc.		4,208		114,668
Hilton Hotels Corp.		9,348		326,245
The Home Depot, Inc.		49,816		2,000,611
IAC/InterActiveCorp (a)		5,360		199,178
International Game Technology (c)		8,175		377,685
Interpublic Group of Companies, Inc. (a) (c)		10,538		128,985
J.C. Penney Co., Inc.		5,660		437,858
Johnson Controls, Inc. (c)		4,706		404,340
Jones Apparel Group, Inc.		2,751		91,966
KB Home (c)		1,817		93,176
Kohl’s Corp. (a)		7,933		542,855
Leggett & Platt, Inc.		4,458		106,546
Lennar Corp.		3,361		176,318
Limited Brands, Inc.		8,268		239,276
Liz Claiborne, Inc.		2,519		109,476
Lowe’s Companies, Inc.		37,409		1,165,290
Marriott International, Inc. - Class A		8,325		397,269
Mattel, Inc.		9,392		212,823

	SHARES		VALUE
Consumer Discretionary - 10.9% (Continued)
McDonald’s Corp.		30,040	$	1,331,673
The McGraw-Hill Companies, Inc.		8,628		586,877
Meredith Corp.		1,060		59,731
New York Times Co. - Class A (c)		3,491		85,041
Newell Rubbermaid, Inc.		6,674		193,212
News Corp. - Class A		57,011		1,224,596
Nike, Inc. - Class B		4,550		450,586
Nordstrom, Inc.		5,264		259,726
Office Depot, Inc. (a)		6,935		264,709
OfficeMax, Inc. (c)		1,716		85,199
Omnicom Group		4,170		435,932
Pulte Homes, Inc.		5,135		170,071
RadioShack Corp. (c)		3,266		54,803
Sears Holdings Corp. (a)		2,015		338,379
The Sherwin-Williams Co.		2,688		170,903
Snap-On, Inc. (c)		1,462		69,650
The Stanley Works		1,705		85,744
Staples, Inc.		17,549		468,558
Starbucks Corp. (a)		18,510		655,624
Starwood Hotels & Resorts Worldwide, Inc.		5,239		327,437
Target Corp.		20,813		1,187,382
Tiffany & Co. (c)		3,392		133,102
Time Warner, Inc.		96,735		2,106,888
The TJX Cos., Inc.		11,019		314,262
Tribune Co. (c)		4,619		142,173
Univision Communications, Inc. (a) (c)		6,079		215,318
VF Corp.		2,118		173,845
Viacom, Inc. - Class B (a)		17,387		713,389
The Walt Disney Co.		50,644		1,735,570
Wendy’s International, Inc. (c)		2,811		93,016
Whirlpool Corp. (c)		1,930		160,229
Wyndham Worldwide Corp. (a)		4,889		156,546
Yum! Brands, Inc.		6,556		385,493
				33,824,270
Consumer Staples - 9.3%
Altria Group, Inc.		50,724		4,353,134
Anheuser-Busch Companies, Inc.		18,633		916,743
Archer-Daniels-Midland Co.		15,777		504,233
Avon Products, Inc.		10,857		358,715
Brown-Forman Corp. - Class B		2,005		132,811
Campbell Soup Co.		5,588		217,317
Clorox Co.		3,639		233,442
The Coca-Cola Co.		49,384		2,382,778
Coca-Cola Enterprises, Inc.		7,315		149,372
Colgate-Palmolive Co.		12,406		809,367
ConAgra Foods, Inc.		12,517		337,959
Constellation Brands, Inc. - Class A (a) (c)		4,798		139,238
Costco Wholesale Corp.		11,364		600,815
CVS Corp.		19,725		609,700
Dean Foods Co. (a)		3,281		138,721
The Estee Lauder Companies Inc.		2,866		116,990
General Mills, Inc.		8,584		494,438
The Hershey Co.		4,282		213,244
HJ Heinz Co. (c)		8,075		363,456
Kellogg Co.		5,878		294,253
Kimberly-Clark Corp.		11,088		753,430

The accompanying notes are an integral part of the financial statements.

20

Summit Mutual Funds, Inc. - Pinnacle Series
S&P 500 INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Consumer Staples - 9.3% (Continued)
The Kroger Co.		17,437	$	402,271
McCormick & Co., Inc.		3,195		123,199
Molson Coors Brewing Co. - Class B		1,106		84,543
Pepsi Bottling Group, Inc.		3,280		101,385
PepsiCo, Inc.		39,827		2,491,179
Procter & Gamble Co.		76,932		4,944,420
Reynolds American, Inc. (c)		4,132		270,522
Safeway, Inc.		10,856		375,183
Sara Lee Corp.		18,320		311,989
Supervalu, Inc. (c)		4,928		176,176
Sysco Corp.		14,918		548,386
Tyson Foods, Inc. - Class A (c)		6,077		99,967
UST, Inc. (c)		3,946		229,657
Walgreen Co.		24,356		1,117,697
Wal-Mart Stores, Inc.		59,599		2,752,282
Whole Foods Market, Inc. (c)		3,378		158,529
WM Wrigley Jr. Co. (c)		5,354		276,909
				28,584,450
Energy - 9.8%
Anadarko Petroleum Corp.		11,056		481,157
Apache Corp.		7,962		529,553
Baker Hughes, Inc.		8,222		613,855
BJ Services Co.		7,753		227,318
Chesapeake Energy Corp. (c)		8,900		258,545
Chevron Corp.		53,420		3,927,973
ConocoPhillips		39,794		2,863,178
Devon Energy Corp.		10,609		711,652
El Paso Corp. (c)		16,606		253,740
EOG Resources, Inc.		5,854		365,582
Exxon Mobil Corp.		141,857		10,870,502
Halliburton Co.		24,889		772,803
Hess Corp.		6,550		324,683
Kinder Morgan, Inc.		2,513		265,750
Marathon Oil Corp.		8,734		807,895
Murphy Oil Corp.		4,527		230,198
Nabors Industries Ltd. (a) (c)		7,483		222,844
National-Oilwell Varco, Inc. (a)		4,219		258,118
Noble Corp.		3,321		252,894
Occidental Petroleum Corp.		20,660		1,008,828
Peabody Energy Corp.		6,350		256,603
Rowan Cos., Inc.		2,659		88,279
Schlumberger Ltd.		28,436		1,796,018
Smith International, Inc.		4,920		202,064
Sunoco, Inc.		3,197		199,365
Transocean, Inc. (a)		6,957		562,752
Valero Energy Corp.		14,831		758,754
Weatherford International Ltd. (a)		8,411		351,496
Williams Companies, Inc.		14,344		374,665
XTO Energy, Inc.		8,782		413,193
				30,250,257
Financials - 22.3%
ACE Ltd.		7,839		474,808
AFLAC, Inc.		12,021		552,966
The Allstate Corp.		15,319		997,420
AMBAC Financial Group, Inc.		2,550		227,129
American Express Co.		29,436		1,785,882
American International Group, Inc.		62,968		4,512,287

	SHARES		VALUE
Financials - 22.3% (Continued)
Ameriprise Financial, Inc.		5,890	$	321,005
AON Corp.		7,685		271,588
Apartment Investment & Management Co.		2,343		131,255
Archstone-Smith Trust		5,160		300,364
Bank of America Corp.		109,661		5,854,801
The Bank of New York Co., Inc.		18,617		732,951
BB&T Corp.		13,256		582,336
The Bear Stearns Companies, Inc.		2,908		473,364
Boston Properties, Inc.		2,769		309,796
Capital One Financial Corp.		9,915		761,670
Cb Richard Ellis Group, Inc. (a)		4,400		146,080
The Charles Schwab Corp.		24,867		480,928
Chicago Mercantile Exchange Holdings, Inc.		850		433,288
Chubb Corp.		9,985		528,306
Cincinnati Financial Corp.		4,176		189,215
CIT Group, Inc. (c)		4,807		268,086
Citigroup, Inc.		119,811		6,673,473
Comerica, Inc.		3,918		229,908
Commerce Bancorp, Inc. (c)		4,441		156,634
Compass Bancshares, Inc. (c)		3,145		187,599
Countrywide Financial Corp.		14,653		622,020
E*Trade Financial Corp. (a)		10,308		231,105
Equity Office Properties Trust		8,824		425,052
Equity Residential		7,023		356,417
Fannie Mae		23,332		1,385,687
Federated Investors, Inc.		2,037		68,810
Fifth Third Bancorp (c)		13,423		549,403
First Horizon National Corp. (c)		2,973		124,212
Franklin Resources, Inc.		4,039		444,977
Freddie Mac		16,660		1,131,214
Genworth Financial, Inc.		11,025		377,165
The Goldman Sachs Group, Inc.		10,413		2,075,832
Hartford Financial Services Group, Inc.		7,701		718,580
Huntington Bancshares, Inc. (c)		5,917		140,529
J.P. Morgan Chase & Co.		83,778		4,046,477
Janus Capital Group, Inc. (c)		5,173		111,685
KeyCorp		9,750		370,793
Kimco Realty Corp.		5,101		229,290
Legg Mason, Inc. (c)		3,140		298,457
Lehman Brothers Holdings, Inc.		12,907		1,008,295
Lincoln National Corp.		6,922		459,621
Loews Corp.		11,075		459,280
M&T Bank Corp. (c)		1,904		232,593
Marsh & McLennan Companies, Inc.		13,242		406,000
Marshall & Ilsley Corp.		6,162		296,454
MBIA, Inc. (c)		3,251		237,518
Mellon Financial Corp.		9,967		420,109
Merrill Lynch & Co., Inc.		21,479		1,999,695
Metlife, Inc.		18,284		1,078,939
MGIC Investment Corp. (c)		2,108		131,834
Moody’s Corp.		5,891		406,832
Morgan Stanley		25,811		2,101,790
National City Corp.		14,656		535,823
Northern Trust Corp.		4,467		271,102
Plum Creek Timber Co., Inc. (c)		4,441		176,974
PNC Financial Services Group, Inc.		7,134		528,201
Principal Financial Group, Inc.		6,676		391,881
The Progressive Corp.		18,876		457,177

The accompanying notes are an integral part of the financial statements.

21

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	S&P 500 INDEX PORTFOLIO

	SHARES		VALUE
Financials - 22.3% (Continued)
Prologis		5,910	$	359,151
Prudential Financial, Inc.		11,863		1,018,557
Public Storage, Inc.		2,938		286,455
Realogy Corp. (a)		6,027		182,739
Regions Financial Corp.		17,651		660,147
Safeco Corp.		2,913		182,208
Simon Property Group, Inc.		5,359		542,813
SLM Corp.		9,899		482,774
Sovereign Bancorp, Inc. (c)		9,075		230,414
The St. Paul Travelers Companies, Inc.		16,785		901,187
State Street Corp.		8,013		540,397
SunTrust Banks, Inc.		8,765		740,204
Synovus Financial Corp.		7,781		239,888
T. Rowe Price Group, Inc.		6,401		280,172
Torchmark Corp.		2,421		154,363
UnumProvident Corp.		8,210		170,604
US Bancorp		42,897		1,552,442
Vornado Realty Trust		3,119		378,959
Wachovia Corp.		46,354		2,639,860
Washington Mutual, Inc.		23,161		1,053,594
Wells Fargo & Co.		81,587		2,901,234
XL Capital Ltd. - Class A		4,356		313,719
Zions Bancorporation		2,588		213,355
				68,916,198
Health Care - 12.0%
Abbott Laboratories		36,791		1,792,090
Aetna, Inc.		13,666		590,098
Allergan, Inc.		3,693		442,200
AmerisourceBergen Corp.		5,059		227,453
Amgen, Inc. (a)		28,420		1,941,370
Applera Corp. - Applied Biosystems Group		4,468		163,931
Barr Pharmaceuticals, Inc. (a)		2,560		128,307
Bausch & Lomb, Inc. (c)		1,360		70,802
Baxter International, Inc.		15,793		732,637
Becton, Dickinson & Co.		5,967		418,585
Biogen Idec, Inc. (a)		8,290		407,785
Biomet, Inc.		5,931		244,772
Boston Scientific Corp. (a)		29,321		503,735
Bristol-Myers Squibb Co.		47,413		1,247,910
C.R. Bard, Inc.		2,497		207,176
Cardinal Health, Inc.		10,068		648,681
Caremark Rx, Inc.		10,344		590,746
Celgene Corp. (a)		8,480		487,854
CIGNA Corp.		2,494		328,136
Coventry Health Care, Inc. (a)		3,871		193,744
Eli Lilly & Co.		23,829		1,241,491
Express Scripts, Inc. (a)		3,320		237,712
Forest Laboratories, Inc. (a)		7,866		398,020
Genzyme Corp. (a)		6,275		386,414
Gilead Sciences, Inc. (a)		10,970		712,282
Health Management Associates, Inc. - Class A (c)		5,803		122,501
Hospira, Inc. (a)		3,819		128,242
Humana, Inc. (a)		3,969		219,525
IMS Health, Inc.		4,814		132,289
Johnson & Johnson		70,873		4,679,035
King Pharmaceuticals, Inc. (a) (c)		5,838		92,941
Laboratory Corp. Of America Holdings (a) (c)		3,006		220,851
Manor Care, Inc. (c)		1,776		83,330

	SHARES		VALUE
Health Care - 12.0% (Continued)
McKesson Corp.		7,331	$	371,682
Medco Health Solutions, Inc. (a)		7,274		388,723
MedImmune, Inc. (a)		5,996		194,091
Medtronic, Inc.		27,848		1,490,146
Merck & Co., Inc.		52,600		2,293,360
Millipore Corp. (a) (c)		1,304		86,846
Mylan Laboratories, Inc.		5,072		101,237
Patterson Cos., Inc. (a)		3,345		118,781
PerkinElmer, Inc. (c)		3,055		67,913
Pfizer, Inc.		174,817		4,527,760
Quest Diagnostics, Inc.		3,917		207,601
Schering Plough Corp.		35,713		844,255
St. Jude Medical, Inc. (a)		8,702		318,145
Stryker Corp.		7,049		388,470
Tenet Healthcare Corp. (a) (c)		11,344		79,068
Thermo Fisher Scientific, Inc. (a)		9,938		450,092
UnitedHealth Group, Inc.		32,485		1,745,419
Waters Corp. (a)		2,506		122,719
Watson Pharmaceuticals, Inc. (a)		2,460		64,034
WellPoint, Inc. (a)		15,018		1,181,766
Wyeth		32,452		1,652,456
Zimmer Holdings, Inc. (a)		5,982		468,869
				37,186,078
Industrials - 10.9%
3M Co.		18,173		1,416,222
Allied Waste Industries, Inc. (a)		5,518		67,816
American Power Conversion Corp.		4,089		125,082
American Standard Cos., Inc.		4,266		195,596
Avery Dennison Corp.		2,287		155,356
Boeing Co.		19,268		1,711,769
Burlington Northern Santa Fe Corp.		8,792		648,938
Caterpillar, Inc.		15,889		974,472
Cintas Corp. (c)		3,324		131,996
Cooper Industries Ltd. - Class A		2,230		201,659
CSX Corp.		10,684		367,850
Cummins, Inc.		1,176		138,980
Danaher Corp.		5,682		411,604
Deere & Co.		5,654		537,526
Dover Corp.		4,919		241,129
Eaton Corp.		3,621		272,082
Emerson Electric Co.		19,786		872,365
Equifax, Inc. (c)		3,099		125,819
FedEx Corp.		7,354		798,791
Fluor Corp. (c)		2,113		172,526
General Dynamics Corp.		9,732		723,574
General Electric Co.		250,133		9,307,449
Goodrich Corp.		2,987		136,058
Honeywell International, Inc.		19,960		902,990
Illinois Tool Works, Inc.		9,982		461,069
Ingersoll-Rand Company Ltd. - Class A		7,930		310,301
ITT Industries, Inc.		4,462		253,531
L-3 Communications Holdings, Inc.		3,001		245,422
Lockheed Martin Corp.		8,542		786,462
Masco Corp.		9,573		285,946
Monster Worldwide, Inc. (a)		3,080		143,651
Norfolk Southern Corp.		9,995		502,649
Northrop Grumman Corp.		8,289		561,165
Paccar, Inc.		6,028		391,217

The accompanying notes are an integral part of the financial statements.

22

Summit Mutual Funds, Inc. - Pinnacle Series
S&P 500 INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Industrials - 10.9% (Continued)
Pall Corp.		3,011	$	104,030
Parker Hannifin Corp.		2,900		222,952
Pitney Bowes, Inc.		5,352		247,209
Raytheon Co.		10,758		568,022
Robert Half International, Inc. (c)		4,143		153,788
Rockwell Automation, Inc.		4,285		261,728
Rockwell Collins, Inc. (c)		4,125		261,071
RR Donnelley & Sons Co. (c)		5,207		185,057
Ryder System, Inc.		1,519		77,560
Southwest Airlines Co.		19,047		291,800
Terex Corp. (a)		2,490		160,804
Textron, Inc.		3,179		298,095
Tyco International Ltd.		49,084		1,492,154
Union Pacific Corp.		6,484		596,658
United Parcel Service, Inc. - Class B		26,141		1,960,052
United Technologies Corp.		24,379		1,524,175
W.W. Grainger, Inc.		1,840		128,690
Waste Management, Inc.		13,154		483,673
				33,596,580
Information Technology - 14.9%
ADC Telecommunications, Inc. (a)		2,826		41,062
Adobe Systems, Inc. (a)		14,435		593,567
Advanced Micro Devices, Inc. (a)		13,038		265,323
Affiliated Computer Services, Inc. - Class A (a)		2,859		139,634
Agilent Technologies, Inc. (a)		10,270		357,909
Alcatel-Lucent - ADR		1		8
Altera Corp. (a) (c)		8,660		170,429
Analog Devices, Inc.		8,698		285,903
Apple Computer, Inc. (a)		20,648		1,751,776
Applied Materials, Inc. (c)		33,639		620,639
Autodesk, Inc. (a)		5,586		226,010
Automatic Data Processing, Inc.		13,461		662,954
Avaya, Inc. (a)		9,906		138,486
BMC Software, Inc. (a)		5,204		167,569
Broadcom Corp. - Class A (a)		10,931		353,181
CA, Inc. (c)		10,992		248,969
Ciena Corp. (a) (c)		2,028		56,196
Cisco Systems, Inc. (a)		147,914		4,042,490
Citrix Systems, Inc. (a)		4,390		118,749
Cognizant Technology Solutions Corp. (a)		3,430		264,659
Computer Sciences Corp. (a)		4,161		222,073
Compuware Corp. (a)		9,095		75,761
Comverse Technology, Inc. (a) (c)		4,869		102,785
Convergys Corp. (a)		3,378		80,329
Corning, Inc. (a)		37,539		702,355
Dell, Inc. (a)		54,748		1,373,627
Electronic Arts, Inc. (a)		7,382		371,757
Electronic Data Systems Corp.		12,506		344,540
EMC Corp. (a)		57,045		752,994
Fidelity National Information Services, Inc. (c)		3,950		158,355
First Data Corp.		18,456		470,997
Fiserv, Inc. (a)		4,295		225,144
Google, Inc. (a)		5,158		2,375,156
Hewlett-Packard Co.		66,365		2,733,574
Intel Corp.		140,273		2,840,528
International Business Machines Corp.		36,874		3,582,309
Intuit, Inc. (a)		8,241		251,433
Jabil Circuit, Inc.		4,296		105,467

	SHARES		VALUE
Information Technology - 14.9% (Continued)
JDS Uniphase Corp. (a) (c)		5,099	$	84,949
Juniper Networks, Inc. (a)		13,646		258,455
KLA-Tencor Corp.		4,800		238,800
Lexmark International, Inc. - Class A (a)		2,539		185,855
Linear Technology Corp.		7,318		221,882
LSI Logic Corp. (a) (c)		9,574		86,166
Maxim Integrated Products, Inc.		7,729		236,662
Micron Technology, Inc. (a)		17,685		246,883
Microsoft Corp.		210,767		6,293,503
Molex, Inc.		3,422		108,238
Motorola, Inc.		59,528		1,223,896
National Semiconductor Corp.		7,213		163,735
NCR Corp. (a)		4,385		187,503
Network Appliance, Inc. (a)		9,021		354,345
Novell, Inc. (a)		8,171		50,660
Novellus Systems, Inc. (a) (c)		3,110		107,046
Nvidia Corp. (a)		8,550		316,435
Oracle Corp. (a)		97,731		1,675,109
Paychex, Inc.		8,064		318,851
PMC - Sierra, Inc. (a) (c)		4,609		30,926
QLogic Corp. (a)		3,888		85,225
Qualcomm, Inc.		40,385		1,526,149
Sabre Holdings Corp. - Class A		3,201		102,080
SanDisk Corp. (a)		5,299		228,016
Sanmina-SCI Corporation (a)		12,884		44,450
Solectron Corp. (a) (c)		22,113		71,204
Sun Microsystems, Inc. (a)		84,298		456,895
Symantec Corp. (a)		23,968		499,733
Symbol Technologies, Inc.		6,116		91,373
Tektronix, Inc. (c)		2,020		58,923
Tellabs, Inc. (a)		10,800		110,808
Teradyne, Inc. (a) (c)		4,785		71,584
Texas Instruments, Inc.		36,193		1,042,358
Unisys Corp. (a) (c)		8,284		64,947
VeriSign, Inc. (a)		5,912		142,184
The Western Union Co.		18,456		413,783
Xerox Corp. (a)		23,702		401,749
Xilinx, Inc. (c)		8,279		197,123
Yahoo!, Inc. (a)		30,219		771,793
				46,044,973
Materials - 3.0%
Air Products & Chemicals, Inc.		5,407		380,004
Alcoa, Inc.		20,970		629,310
Allegheny Technologies, Inc.		2,437		220,987
Ashland, Inc. (c)		1,713		118,505
Ball Corp.		2,525		110,090
Bemis Co.		2,530		85,969
Consol Energy, Inc.		4,424		142,143
The Dow Chemical Co.		23,185		926,009
Eastman Chemical Co.		1,972		116,959
Ecolab, Inc.		4,452		201,230
EI Du Pont de Nemours & Co.		22,204		1,081,557
Freeport-McMoRan Copper & Gold, Inc. - Class B		4,597		256,191
Hercules, Inc. (a) (c)		2,743		52,967
International Flavors & Fragrances, Inc.		1,907		93,748
International Paper Co.		11,011		375,475
MeadWestvaco Corp.		4,429		133,136
Monsanto Co.		13,045		685,254

The accompanying notes are an integral part of the financial statements.

23

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	S&P 500 INDEX PORTFOLIO

	SHARES		VALUE
Materials - 3.0% (Continued)
Newmont Mining Corp.		10,823	$	488,658
Nucor Corp.		7,510		410,497
Pactiv Corp. (a)		3,404		121,489
Phelps Dodge Corp.		4,932		590,459
PPG Industries, Inc.		3,993		256,391
Praxair, Inc.		7,797		462,596
Rohm & Haas Co.		3,504		179,125
Sealed Air Corp.		1,969		127,827
Sigma-Aldrich Corp. (c)		1,614		125,440
Temple-Inland, Inc.		2,663		122,578
United States Steel Corp.		2,725		199,307
Vulcan Materials Co. (c)		2,427		218,115
Weyerhaeuser Co.		5,937		419,449
				9,331,465
Telecommunication Services - 3.5%
Alltel Corp.		9,378		567,181
AT&T, Inc.		93,733		3,350,955
BellSouth Corp.		43,996		2,072,652
CenturyTel, Inc.		2,801		122,292
Citizens Communications Co. (c)		7,844		112,718
Embarq Corp.		3,597		189,058
Qwest Communications International, Inc. (a) (c)		37,727		315,775
Sprint Nextel Corp.		70,304		1,328,043
Verizon Communications, Inc.		70,559		2,627,617
Windstream Corp.		11,487		163,345
				10,849,636
Utilities - 3.5%
The AES Corp. (a)		15,866		349,687
Allegheny Energy, Inc. (a)		3,937		180,748
Ameren Corp. (c)		4,950		265,963
American Electric Power Co., Inc.		9,494		404,255
Centerpoint Energy, Inc. (c)		7,505		124,433
CMS Energy Corp. (a) (c)		5,334		89,078
Consolidated Edison, Inc. (c)		5,921		284,622
Constellation Energy Group, Inc.		4,316		297,243
Dominion Resources, Inc.		8,376		702,244
DTE Energy Co. (c)		4,286		207,485
Duke Energy Corporation		30,360		1,008,256
Dynegy, Inc. - Class A (a)		7,604		55,053
Edison International		7,853		357,154

	SHARES		VALUE
Utilities - 3.5% (Continued)
Entergy Corp.		5,012	$	462,708
Exelon Corp.		16,112		997,172
FirstEnergy Corp.		7,951		479,445
FPL Group, Inc. (c)		9,741		530,105
KeySpan Corp.		4,217		173,656
Nicor, Inc. (c)		1,117		52,276
NiSource, Inc.		6,575		158,457
Peoples Energy Corp.		965		43,010
PG&E Corp. (c)		8,365		395,915
Pinnacle West Capital Corp. (c)		2,391		121,200
PPL Corp.		9,171		328,689
Progress Energy, Inc. (c)		6,096		299,192
Public Service Enterprise Group, Inc.		6,061		402,329
Questar Corp.		2,080		172,744
Sempra Energy		6,250		350,250
The Southern Co.		17,884		659,204
TECO Energy, Inc. (c)		5,032		86,701
TXU Corp.		11,152		604,550
Xcel Energy, Inc. (c)		9,778		225,481
				10,869,305
TOTAL COMMON STOCKS
(Cost $221,051,639)				309,453,212
SHORT TERM INVESTMENTS (e) - 0.6%
Money Market Funds - 0.5%
Northern Institutional Diversified Assets Portfolio				1,489,258
		PRINCIPAL
		AMOUNT		VALUE
U.S. Treasury Bills - 0.1%
4.840%, 03/15/2007	$	250,000	$	247,616
TOTAL SHORT TERM INVESTMENTS
(Cost $1,736,822)				1,736,874
Total Investments (Cost $222,788,461) (b) - 100.7%				311,190,086
Northern Institutional Liquid Assets Portfolio (d) - 4.2%				13,091,263
Liabilities in Excess of Other Assets - (4.9)%				(15,262,207	)
TOTAL NET ASSETS - 100.0%			$	309,019,142

ADR	American Depository Receipt
(a)	Non Income Producing
(b)	For federal income tax purposes, cost is $223,447,580 and gross unrealized appreciation and depreciation of securities as of December 31, 2006, was $97,965,856 and $(10,223,350) respectively, with a net appreciation / (depreciation) of $87,742,506.
(c)	All or a portion of the security is out on loan.
(d)	This security was purchased with cash collateral held from securities lending. The market value of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted is $14,718,145, $13,091,263, and $2,040,637, respectively.
(e)	Securities and other assets with an aggregate value of $357,100 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of December 31, 2006:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
S&P 500 Index (03/07)	1	$804

The accompanying notes are in integral part of the financial statements.

24

Summit Mutual Funds, Inc. - Pinnacle Series
S&P 500 INDEX PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS
Investments in securities, at value	$	311,190,086
Collateral for securities loaned,
at fair value		13,091,263
Cash		1,183
Receivables:
Securities sold		641,040
Shares sold		19,616
Interest and dividends		433,960
Prepaid expenses and other		10,425
		325,387,573
LIABILITIES
Payables:
Payable upon return of securities loaned		13,091,263
Shares redeemed		3,043,168
Variation margin		1,350
Advisory fees		74,079
Royalty fees		68,980
Administration fees		27,440
Professional fees		19,971
Fund accounting fees		12,559
Custodian fees		9,608
Directors’ fees		14
Other accrued expenses		19,999
		16,368,431
NET ASSETS*
Paid-in capital		220,206,479
Accumulated undistributed net investment
income / (loss)		3,896,516
Accumulated net realized gain / (loss)
on investments and futures contracts		(3,486,282	)
Net unrealized appreciation / (depreciation)
on investments and futures contracts		88,402,429
	$	309,019,142
Investments at cost	$	222,788,461
Shares authorized ($.10 par value)		30,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$309,019,142	3,280,776	$94.19

* FEDERAL TAX DATA AS OF DECEMBER 31, 2006
Percentage of ordinary distributions designated as
qualified dividend income		100.00%
Dividends received deduction for corporate shareholders		100.00%
Undistributed ordinary income	$	4,066,900
Undistributed long-term gains	$	341,838
Unrealized appreciation	$	87,742,506
Post October capital loss carryforward	$	(371,049)

Capital Loss Carryforward Expiring December 31:
	2010	2013
	$(1,959,815)	$(1,007,717)

STATEMENT OF OPERATIONS
For the year ended December 31, 2006
INVESTMENT INCOME
Interest	$	26,816
Dividends		5,736,581
Other income		16,771
		5,780,168
EXPENSES
Advisory fees		740,654
Administration fees		296,262
Professional fees		45,964
Directors’ fees		34,109
Custodian fees		31,231
Fund accounting fees		29,734
Royalty fee		29,675
Shareholder reporting fees		21,872
Transfer agent fees		13,063
Other expenses		28,579
		1,271,143
Reimbursements and waivers		(115,722	)
		1,155,421
NET INVESTMENT INCOME / (LOSS)		4,624,747
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		(330,884	)
Net realized gain / (loss) on futures contracts		450,016
		119,132
Net change in unrealized appreciation /
(depreciation) on investments and
futures contracts		37,598,822
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		37,717,954
NET INCREASE / (DECREASE)
IN NET ASSETS FROM OPERATIONS	$	42,342,701

TRANSACTIONS WITH AFFILIATES:
	Percent of Current
	Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit(1)	and Waivers
0.25%	0.10%	0.55%	$115,722

(1) The Adviser has voluntarily agreed to waive its fees and/or reimburse expenses of the portfolio to the extent necessary, to limit all expenses to 0.39% of the average daily net assets of the portfolio until December 31, 2007.

The accompanying notes are an integral part of the financial statements.

25

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL STATEMENTS	S&P 500 INDEX PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	4,624,747		$	4,145,303
Net realized gain / (loss) on investments and futures		119,132			(1,290,978	)
Net change in unrealized appreciation / (depreciation) on investments
and futures contracts		37,598,822			9,592,113
		42,342,701			12,446,438
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(4,336,685	)		(4,182,243	)
		(4,336,685	)		(4,182,243	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		18,021,377			29,718,045
Reinvestment of distributions		4,336,685			4,182,243
Payments for shares redeemed		(42,010,623	)		(31,374,244	)
		(19,652,561	)		2,526,044
NET INCREASE / (DECREASE) IN NET ASSETS		18,353,455			10,790,239
NET ASSETS
Beginning of period		290,665,687			279,875,448
End of period	$	309,019,142		$	290,665,687
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	3,896,516		$	3,650,855

FUND SHARE TRANSACTIONS
Sold	206,398			370,255
Reinvestment of distributions	51,092			53,881
Redeemed	(484,937		)	(393,310		)
Net increase / (decrease) from fund share transactions	(227,447		)	30,826
TOTAL COST OF PURCHASES OF:
Common Stocks	$	10,049,182		$	17,809,090
	$	10,049,182		$	17,809,090
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	25,577,773		$	15,832,047
	$	25,577,773		$	15,832,047
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	4,336,685		$	4,182,243
	$	4,336,685		$	4,182,243

The accompanying notes are an integral part of the financial statements.

26

Summit Mutual Funds, Inc. - Pinnacle Series   

S&P MIDCAP 400 INDEX PORTFOLIO   

Summit S&P Midcap 400 Index Portfolio - Average Annual Total Return
1-Year	5-Year	Since Inception
9.72%	10.21%	9.95%

Past performance is not predictive of future results. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower.

Portfolio Data

Managers:	Gary R. Rodmaker
	Nick J. Kotsonis
	Kevin P. Aug
Inception Date:	May 3, 1999
Total Net Assets:	$144.14 Million
Number of Equity Holdings:	401
Median Cap Size:	$2,716 (in millions)
Average Price-to-book Ratio:	2.48 x
Dividend Yield:	1.23%

Top 10 Equity Holdings

	(% of net assets)
Precision Castparts Corp.	0.91%
Noble Energy, Inc.	0.74%
Expeditors International
Washington, Inc.	0.74%
ENSCO International, Inc.	0.66%
Lam Research Corp.	0.61%
C.H. Robinson Worldwide, Inc.	0.61%
Microchip Technology, Inc.	0.60%
Developers Diversified Realty Corp.	0.59%
Sepracor, Inc.	0.58%
MEMC Electronic Materials, Inc.	0.56%

Sector Allocations

27

Summit Mutual Funds, Inc. - Pinnacle Series

S&P MIDCAP 400 INDEX PORTFOLIO

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 “Index”).

Strategy - The Summit Pinnacle S&P MidCap 400 Index Portfolio (the “Portfolio”) will attempt to achieve, in both rising and falling markets, a correlation of at least 95% between the total return of its net assets before expenses and the total return of the Index.

Managers’ Comments:

For the year ended December 31, 2006, the Summit S&P MidCap 400 Index Portfolio’s total return was 9.72% (before the impact of any product or contract-level fees). This compares to a 10.32% total return for the S&P MidCap 400 Index. The difference of 0.60% is referred to as “tracking error” and is largely attributed to the Portfolio’s operating expenses. These expenses represent the Portfolio’s costs for advisory, administration, accounting, custody and other services. The remaining difference can be caused by a number of factors, including the timing and size of cash flows into and out of the Portfolio; brokers’ commissions or other trading costs; and holding security positions in amounts that are different than the weightings in the Index, among others. While an exact replication of the capitalization weightings of securities in the Index is not feasible, the Portfolio’s objectives and strategies call for a correlation of at least 95% between the Portfolio’s pre-expense total return and that of the Index. The Portfolio achieved this level of correlation for the period presented.

28

Summit Mutual Funds, Inc. - Pinnacle Series
S&P MIDCAP 400 INDEX PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

Computed on the basis of a share of capital stock outstanding throughout the period. Share amounts and net asset values have been adjusted as a result of the 1-for-5 reverse stock split on February 15, 2002.

				Year Ended December 31,
	2006			2005			2004			2003			2002
Net asset value, beginning of period	$	66.08		$	60.76		$	52.62		$	39.29		$	46.70
INVESTMENT ACTIVITIES:
Net investment income / (loss)		0.67			0.52			0.35	(2)		0.29			0.22
Net realized and unrealized gains / (losses)		5.64			6.50			7.93			13.28			(7.25	)
Total from Investment Activities		6.31			7.02			8.28			13.57			(7.03	)
DISTRIBUTIONS:
Net investment income		(0.59	)		(0.33	)		(0.14	)		(0.24	)		(0.23	)
Net realized gains		(2.57	)		(1.37	)		—			—			(0.15	)
Total Distributions		(3.16	)		(1.70	)		(0.14	)		(0.24	)		(0.38	)
Net asset value, end of period	$	69.23		$	66.08		$	60.76		$	52.62		$	39.29
Total return		9.72	%		11.94	%		15.76	%		34.74	%		-15.15	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(1)		0.52	%		0.54	%		0.56	%		0.60	%		0.60	%
Ratio of expenses to average net assets - gross		0.52	%		0.54	%		0.56	%		0.67	%		0.81	%
Ratio of net investment income / (loss) to average net assets		1.15	%		0.91	%		0.68	%		0.58	%		0.53	%
Portfolio turnover rate		14.35	%		19.07	%		15.08	%		8.54	%		27.73	%
Net assets, end of period (000’s)	$	144,136		$	127,372		$	99,775		$	39,944		$	23,180

⁽¹⁾ Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

⁽²⁾ Per share amounts are based on average shares outstanding.

The accompanying notes are an integral part of the financial statements.

29

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	S&P MIDCAP 400 INDEX PORTFOLIO

DECEMBER 31, 2006
	SHARES		VALUE
COMMON STOCKS - 95.6%
Consumer Discretionary - 14.6%
99 Cents Only Stores (a) (c)		5,794	$	70,513
Abercrombie & Fitch Co. - Class A		10,879		757,505
Advance Auto Parts, Inc.		12,968		461,142
Aeropostale, Inc. (a) (c)		6,565		202,662
American Eagle Outfitters, Inc. (c)		24,698		770,809
American Greetings Corp. - Class A (c)		7,058		168,474
AnnTaylor Stores Corp. (a)		8,975		294,739
Applebee’s International, Inc. (c)		9,182		226,520
ArvinMeritor, Inc. (c)		8,712		158,820
Bandag, Inc. (c)		1,411		71,157
Barnes & Noble, Inc.		6,361		252,595
Beazer Homes USA, Inc. (c)		4,967		233,499
Belo Corp. (c)		11,031		202,639
Blyth, Inc. (c)		3,221		66,836
Bob Evans Farms, Inc.		4,496		153,853
Borders Group, Inc. (c)		7,657		171,134
BorgWarner, Inc. (c)		7,084		418,098
Boyd Gaming Corp.		5,278		239,146
Brinker International, Inc.		15,310		461,750
Callaway Golf Co. (c)		7,932		114,300
Career Education Corp. (a)		11,864		293,990
Carmax, Inc. (a)		13,136		704,484
Catalina Marketing Corp. (c)		4,738		130,295
CBRL Group, Inc.		3,822		171,073
Charming Shoppes (a)		15,138		204,817
The Cheesecake Factory, Inc. (a) (c)		9,757		240,022
Chico’s FAS, Inc. (a) (c)		21,693		448,828
Claire’s Stores, Inc. (c)		11,753		389,494
Coldwater Creek, Inc. (a) (c)		7,416		181,840
Corinthian Colleges, Inc. (a) (c)		10,627		144,846
DeVry, Inc.		7,344		205,632
Dick’s Sporting Goods, Inc. (a) (c)		4,630		226,824
Dollar Tree Stores, Inc. (a)		12,581		378,688
Entercom Communications Corp. (c)		3,364		94,797
Foot Locker, Inc. (c)		19,210		421,275
Furniture Brands International, Inc. (c)		6,143		99,701
GameStop Corp. (a) (c)		9,278		511,311
Gentex Corp. (c)		18,127		282,056
Hanesbrands, Inc. (a)		11,738		277,252
Harte-Hanks, Inc.		6,139		170,112
Hovnanian Enterprises, Inc. - Class A (a) (c)		4,503		152,652
International Speedway Corp. - Class A		4,415		225,342
ITT Educational Services, Inc. (a)		3,991		264,883
John Wiley & Sons, Inc. (c)		5,400		207,738
Laureate Education, Inc. (a)		6,342		308,411
Lear Corp. (c)		8,312		245,453
Lee Enterprises, Inc. (c)		5,667		176,017
MDC Holdings, Inc. (c)		4,270		243,603
Media General, Inc. - Class A (c)		2,909		108,127
Modine Manufacturing Co. (c)		4,054		101,472
Mohawk Industries, Inc. (a) (c)		6,600		494,076
O’Reilly Automotive, Inc. (a)		13,989		448,487
OSI Restaurant Partners, Inc.		9,188		360,170
Pacific Sunwear Of California, Inc. (a) (c)		8,959		175,417
Payless Shoesource, Inc. (a)		8,301		272,439
PetSmart, Inc.		16,838		485,945
Polo Ralph Lauren Corp.		7,615		591,381

	SHARES		VALUE
Consumer Discretionary - 14.6% (Continued)
The Reader’s Digest Association, Inc. (c)		11,908	$	198,864
Regis Corp. (c)		5,607		221,701
Rent-A-Center, Inc. (a) (c)		8,609		254,052
Ross Stores, Inc.		17,435		510,845
Ruby Tuesday, Inc. (c)		7,289		200,010
Ryland Group, Inc. (c)		5,394		294,620
Saks, Inc. (c)		16,900		301,158
Scholastic Corp. (a)		3,087		110,638
Scientific Games Corp. - Class A (a) (c)		8,228		248,732
Sotheby’s (c)		6,837		212,084
Thor Industries, Inc. (c)		4,406		193,820
Timberland Co. (a) (c)		6,326		199,775
Toll Brothers, Inc. (a) (c)		15,527		500,435
Tupperware Corp. (c)		7,487		169,281
Urban Outfitters, Inc. (a)		13,870		319,426
Valassis Communications, Inc. (a) (c)		5,900		85,550
The Washington Post Co. - Class B		708		527,885
Westwood One, Inc. (c)		8,662		61,154
Williams-Sonoma, Inc. (c)		13,939		438,242
				20,983,413
Consumer Staples - 2.2%
Alberto-Culver Co. (a)		9,730		208,708
BJ’s Wholesale Club, Inc. (a) (c)		8,006		249,067
Church & Dwight, Inc. (c)		8,009		341,584
Energizer Holdings, Inc. (a)		7,078		502,467
Hansen Natural Corp. (a) (c)		7,500		252,600
Hormel Foods Corp.		9,025		336,993
The JM Smucker Co.		7,027		340,599
Lancaster Colony Corp.		3,027		134,126
PepsiAmericas, Inc.		7,468		156,679
Ruddick Corp. (c)		4,385		121,684
Smithfield Foods, Inc. (a)		12,225		313,694
Tootsie Roll Industries, Inc. (c)		3,289		107,550
Universal Corp. (c)		3,113		152,568
				3,218,319
Energy - 7.2%
Arch Coal, Inc. (c)		17,721		532,162
Cameron International Corp. (a)		13,764		730,180
Denbury Resources, Inc. (a)		14,714		408,902
ENSCO International, Inc.		18,936		947,936
FMC Technologies, Inc. (a) (c)		8,454		521,020
Forest Oil Corp. (a) (c)		6,750		220,590
Grant Prideco, Inc. (a)		16,067		638,985
Hanover Compressor Co. (a) (c)		12,735		240,564
Helmerich & Payne, Inc.		12,978		317,572
Newfield Exploration Co. (a)		16,136		741,449
Noble Energy, Inc.		21,796		1,069,530
Overseas Shipholding Group, Inc. (c)		3,580		201,554
Patterson-UTI Energy, Inc. (c)		19,996		464,507
Pioneer Natural Resources Co.		15,383		610,551
Plains Exploration & Production Co. (a)		9,465		449,871
Pogo Producing Co.		7,230		350,221
Pride International, Inc. (a)		20,135		604,251
Quicksilver Resources, Inc. (a) (c)		6,798		248,739
Southwestern Energy Co. (a) (c)		20,759		727,603
Tidewater, Inc. (c)		7,196		347,999
				10,374,186

The accompanying notes are an integral part of the financial statements.

30

Summit Mutual Funds, Inc. - Pinnacle Series
S&P MIDCAP 400 INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Financials - 17.7%
AG Edwards, Inc.		9,421	$	596,255
AMB Property Corp.		10,929		640,549
American Financial Group, Inc.		8,493		304,984
AmeriCredit Corp. (a) (c)		14,205		357,540
Arthur J. Gallagher & Co. (c)		11,996		354,482
Associated Banc-Corp (c)		16,310		568,893
Astoria Financial Corp.		10,666		321,687
Bank of Hawaii Corp.		6,212		335,137
Brown & Brown, Inc. (c)		14,115		398,184
Cathay General Bancorp (c)		6,359		219,449
City National Corp.		5,019		357,353
The Colonial BancGroup, Inc.		19,106		491,788
Cullen/Frost Bankers, Inc.		7,316		408,379
Developers Diversified Realty Corp. (c)		13,549		852,910
Eaton Vance Corp.		15,605		515,121
Everest Re Group Ltd.		8,014		786,254
Fidelity National Title Group, Inc.		27,088		646,861
First American Corp.		11,940		485,719
First Niagara Financial Group, Inc. (c)		13,677		203,240
FirstMerit Corp. (c)		9,889		238,720
GATX Corp. (c)		6,326		274,106
Greater Bay Bancorp (c)		6,299		165,853
Hanover Insurance Group Inc		6,207		302,902
HCC Insurance Holdings, Inc. (c)		13,727		440,499
Highwoods Properties, Inc. (c)		6,761		275,578
Horace Mann Educators Corp. (c)		5,307		107,201
Hospitality Properties Trust (c)		10,886		517,412
IndyMac Bancorp, Inc. (c)		8,728		394,156
Investors Financial Services Corp. (c)		8,158		348,102
Jefferies Group, Inc. (c)		12,470		334,445
Leucadia National Corp.		20,020		564,564
Liberty Property Trust (c)		11,108		545,847
The Macerich Co.		8,872		768,049
Mack-Cali Realty Corp.		7,705		392,955
Mercantile Bankshares Corp.		15,470		723,841
Mercury General Corp. (c)		4,387		231,327
New Plan Excel Realty Trust (c)		12,934		355,426
New York Community Bancorp, Inc. (c)		32,073		516,375
Nuveen Investments, Inc. (c)		9,704		503,444
Ohio Casualty Corp. (c)		7,658		228,285
Old Republic International Corp.		28,405		661,268
The PMI Group, Inc.		10,676		503,587
Potlatch Corp. (c)		4,786		209,723
Protective Life Corp.		8,633		410,068
Radian Group, Inc.		10,043		541,418
Raymond James Financial, Inc.		11,175		338,714
Rayonier, Inc.		9,454		388,087
Regency Centers Corp.		8,487		663,429
SEI Investments Co.		7,785		463,675
Stancorp Financial Group, Inc.		6,709		302,240
SVB Financial Group (a) (c)		4,215		196,503
TCF Financial Corp. (c)		13,902		381,193
United Dominion Realty Trust, Inc.		16,620		528,350
Unitrin, Inc.		5,051		253,106
Waddell & Reed Financial, Inc. (c)		10,467		286,377
Washington Federal, Inc. (c)		10,765		253,300
Webster Financial Corp.		6,899		336,119
Weingarten Realty Investors		9,348		431,036

	SHARES		VALUE
Financials - 17.7% (Continued)
Westamerica Bancorporation (c)		3,816	$	193,204
Wilmington Trust Corp.		8,484		357,770
WR Berkley Corp.		20,804		717,946
				25,490,985
Health Care - 10.4%
Advanced Medical Optics, Inc. (a) (c)		7,320		257,664
Affymetrix, Inc. (a) (c)		8,357		192,712
Apria Healthcare Group, Inc. (a) (c)		5,238		139,593
Beckman Coulter, Inc.		7,635		456,573
Cephalon, Inc. (a) (c)		7,493		527,582
Charles River Laboratories International, Inc. (a) (c)		8,433		364,727
Community Health Systems, Inc. (a) (c)		11,666		426,042
Covance, Inc. (a)		7,873		463,798
Cytyc Corp. (a)		13,930		394,219
Dentsply International, Inc.		18,984		566,672
Edwards Lifesciences Corp. (a) (c)		7,154		336,524
Gen-Probe, Inc. (a)		6,390		334,644
Health Net, Inc. (a)		14,306		696,130
Henry Schein, Inc. (a)		10,880		532,902
Hillenbrand Industries, Inc. (c)		7,574		431,188
Intuitive Surgical, Inc. (a)		4,499		431,454
Invitrogen Corp. (a) (c)		5,939		336,088
LifePoint Hospitals, Inc. (a) (c)		7,081		238,630
Lincare Holdings, Inc. (a)		11,545		459,953
Martek Biosciences Corp. (a) (c)		3,871		90,349
Medicis Pharmaceutical (c)		6,749		237,092
Millennium Pharmaceuticals, Inc. (a)		38,790		422,811
Mine Safety Appliances Co. (c)		3,650		133,773
Omnicare, Inc. (c)		14,973		578,407
Par Pharmaceutical Companies, Inc. (a) (c)		4,326		96,773
PDL BioPharma, Inc. (a) (c)		14,177		285,525
Perrigo Co. (c)		9,383		162,326
Pharmaceutical Product Development, Inc. (c)		12,721		409,871
Psychiatric Solutions, Inc. (a) (c)		6,560		246,131
Resmed, Inc. (a)		9,340		459,715
Sepracor, Inc. (a) (c)		13,479		830,037
STERIS Corp. (c)		8,179		205,865
Techne Corp. (a)		4,869		269,986
Triad Hospitals, Inc. (a)		10,843		453,563
Universal Health Services, Inc.		6,713		372,102
Valeant Pharmaceuticals International (c)		11,482		197,950
Varian Medical Systems, Inc. (a)		16,039		762,975
Varian, Inc. (a)(c)		3,759		168,366
VCA Antech, Inc. (a)		10,294		331,364
Ventana Medical Systems (a) (c)		4,000		172,120
Vertex Pharmaceuticals, Inc. (a) (c)		15,405		576,455
				15,050,651
Industrials - 15.1%
Adesa, Inc.		11,095		307,886
AGCO Corp. (a) (c)		11,228		347,394
Airtran Holdings, Inc. (a) (c)		11,211		131,617
Alaska Air Group, Inc. (a)		4,925		194,537
Alexander & Baldwin, Inc. (c)		5,338		236,687
Alliant Techsystems, Inc. (a) (c)		4,076		318,702
Ametek, Inc.		13,062		415,894
Avis Budget Group, Inc.		12,367		268,240
Banta Corp.		2,923		106,397

The accompanying notes are an integral part of the financial statements.

31

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	S&P MIDCAP 400 INDEX PORTFOLIO

	SHARES		VALUE
Industrials - 15.1% (Continued)
The Brink’s Co. (c)		5,838	$	373,165
C.H. Robinson Worldwide, Inc. (c)		21,397		874,923
Carlisle Cos., Inc.		3,803		298,536
ChoicePoint, Inc. (a)		10,073		396,675
Con-way Inc. (c)		5,925		260,937
Copart, Inc. (a)		8,709		261,270
The Corporate Executive Board Co.		4,970		435,869
Crane Co.		6,336		232,151
Deluxe Corp. (c)		6,357		160,196
Donaldson Co, Inc.		8,786		304,962
DRS Technologies, Inc. (c)		4,959		261,240
Dun & Bradstreet Corp. (a)		7,597		628,956
Dycom Industries, Inc. (a) (c)		5,010		105,811
Expeditors International Washington, Inc.		26,319		1,065,920
Fastenal Co. (c)		15,473		555,171
Federal Signal Corp. (c)		5,934		95,181
Flowserve Corp. (a)		7,268		366,816
Graco, Inc.		8,277		327,935
Granite Construction, Inc. (c)		4,180		210,338
Harsco Corp.		5,186		394,655
Herman Miller, Inc.		8,198		298,079
HNI Corp. (c)		6,261		278,051
Hubbell, Inc. - Class B (c)		7,525		340,205
Jacobs Engineering Group, Inc. (a)		7,258		591,817
JB Hunt Transport Services, Inc. (c)		13,102		272,129
JetBlue Airways Corp. (a) (c)		21,648		307,402
Joy Global, Inc. (c)		14,641		707,746
Kelly Services, Inc. (c)		2,619		75,794
Kennametal, Inc.		4,754		279,773
Korn/Ferry International (a) (c)		5,399		123,961
Lincoln Electric Holdings, Inc.		5,253		317,386
Manpower, Inc.		10,606		794,708
MSC Industrial Direct Co., Inc. Class A		6,754		264,419
Navigant Consulting, Inc. (a) (c)		6,542		129,270
Nordson Corp. (c)		4,161		207,343
Oshkosh Truck Corp.		9,084		439,847
Pentair, Inc. (c)		12,475		391,715
Precision Castparts Corp.		16,722		1,308,998
Quanta Services, Inc. (a) (c)		14,621		287,595
Republic Services, Inc.		14,155		575,684
Rollins, Inc. (c)		3,688		81,542
Roper Industries, Inc.		10,746		539,879
Sequa Corp. (a) (c)		780		89,747
SPX Corp.		7,210		440,964
Stericycle, Inc. (a) (c)		5,445		411,098
Strayer Education, Inc. (c)		1,770		187,709
Swift Transportation Co., Inc. (a)		6,652		174,748
Teleflex, Inc.		4,897		316,150
Thomas & Betts Corp. (a)		6,399		302,545
Timken Co.		11,597		338,400
Trinity Industries, Inc. (c)		9,837		346,262
United Rentals, Inc. (a) (c)		8,082		205,525
Werner Enterprises, Inc. (c)		6,259		109,407
YRC Worldwide, Inc. (a) (c)		7,020		264,865
				21,738,824
Information Technology - 14.5%
3Com Corp. (a) (c)		48,736		200,305
Activision, Inc. (a)		30,785		530,733

	SHARES		VALUE
Information Technology - 14.5% (Continued)
Acxiom Corp.		8,361	$	214,460
Adtran, Inc. (c)		7,995		181,486
Advent Software, Inc. (a) (c)		2,449		86,425
Alliance Data Systems Corp. (a)		8,211		512,941
Amphenol Corp. - Class A		11,038		685,239
Andrew Corp. (a)(c)		19,875		203,321
Arrow Electronics, Inc. (a)		15,074		475,585
Atmel Corp. (a)		52,850		319,742
Avnet, Inc. (a) (c)		15,757		402,276
Avocent Corp. (a) (c)		6,451		218,366
The BISYS Group, Inc. (a) (c)		14,882		192,127
Cadence Design Systems, Inc. (a) (c)		34,635		620,313
CDW Corp.		7,405		520,720
Ceridian Corp. (a)		17,155		479,997
Checkfree Corp. (a) (c)		10,976		440,796
CommScope, Inc. (a) (c)		7,285		222,047
Cree, Inc. (a) (c)		9,528		165,025
CSG Systems International, Inc. (a) (c)		5,875		157,039
Cypress Semiconductor Corp. (a) (c)		17,434		294,112
Diebold, Inc. (c)		8,101		377,507
DST Systems, Inc. (a) (c)		6,861		429,704
F5 Networks, Inc. (a)		5,002		371,198
Fair Isaac Corp.		7,153		290,769
Fairchild Semiconductor International, Inc. (a) (c)		15,122		254,201
Gartner, Inc. - Class A (a) (c)		7,048		139,480
Harris Corp.		16,510		757,149
Imation Corp. (c)		4,216		195,749
Ingram Micro, Inc. (a)		17,087		348,746
Integrated Device Technology, Inc. (a)		24,626		381,210
International Rectifier Corp. (a)		8,825		340,027
Intersil Corp. - Class A		17,322		414,342
Jack Henry & Associates, Inc. (c)		9,692		207,409
Kemet Corp. (a) (c)		10,761		78,555
Lam Research Corp. (a)		17,489		885,293
Lattice Semiconductor Corp. (a) (c)		14,104		91,394
Macrovision Corp. (a) (c)		6,536		184,707
McAfee, Inc. (a)		19,689		558,774
McData Corp. - Class A (a) (c)		19,687		109,263
MEMC Electronic Materials, Inc. (a)		20,543		804,053
Mentor Graphics Corp. (a) (c)		10,043		181,075
Micrel, Inc. (a) (c)		7,711		83,125
Microchip Technology, Inc.		26,516		867,073
MoneyGram International, Inc. (c)		10,449		327,681
MPS Group, Inc. (a) (c)		12,794		181,419
National Instruments Corp.		6,998		190,626
Newport Corp. (a) (c)		5,044		105,672
Palm, Inc. (a) (c)		12,768		179,901
Parametric Technology Corp. (a)		13,820		249,036
Plantronics, Inc. (c)		5,860		124,232
Plexus Corp. (a) (c)		5,709		136,331
Polycom, Inc. (a)		10,881		336,332
Powerwave Technologies, Inc. (a) (c)		15,682		101,149
RF Micro Devices, Inc. (a) (c)		23,637		160,495
Semtech Corp. (a) (c)		9,000		117,630
Silicon Laboratories, Inc. (a) (c)		6,910		239,431
SRA International, Inc. - Class A (a) (c)		5,043		134,850
Sybase, Inc. (a) (c)		11,005		271,823
Synopsys, Inc. (a)		17,372		464,354

The accompanying notes are an integral part of the financial statements.

32

Summit Mutual Funds, Inc. - Pinnacle Series
S&P MIDCAP 400 INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Information Technology - 14.5% (Continued)
Tech Data Corp. (a)		6,819	$	258,236
Transaction Systems Architects, Inc. (a) (c)		4,634		150,929
Triquint Semiconductor, Inc. (a) (c)		17,160		77,220
Utstarcom, Inc. (a) (c)		13,133		114,914
Valueclick, Inc. (a) (c)		12,070		285,214
Vishay Intertechnology, Inc. (a)		22,773		308,346
Western Digital Corp. (a)		27,244		557,412
Wind River Systems, Inc. (a) (c)		9,318		95,510
Zebra Technologies Corp. - Class A (a) (c)		8,740		304,065
				20,946,666
Materials - 5.6%
Airgas, Inc.		9,609		389,357
Albemarle Corp.		4,866		349,379
Bowater, Inc. (c)		6,899		155,228
Cabot Corp.		7,817		340,587
Chemtura Corp.		29,680		285,818
Commercial Metals Co.		14,805		381,969
Cytec Industries, Inc.		5,117		289,162
Ferro Corp. (c)		5,264		108,912
Florida Rock Industries, Inc.		6,089		262,131
FMC Corp.		4,814		368,512
Glatfelter (c)		5,519		85,545
Longview Fibre Co.		8,111		178,036
Louisiana-Pacific Corp.		12,833		276,295
Lubrizol Corp.		8,453		423,749
Lyondell Chemical Co.		26,002		664,871
Martin Marietta Materials, Inc.		5,527		574,311
Minerals Technologies, Inc. (c)		2,412		141,801
Olin Corp. (c)		8,983		148,399
Packaging Corp of America		10,028		221,619
Reliance Steel & Aluminum Co. (c)		7,914		311,653
RPM International, Inc.		14,668		306,415
The Scotts Miracle-Gro Co. - Class A		5,694		294,095
Sensient Technologies Corp. (c)		5,684		139,826
Sonoco Products Co.		12,252		466,311
Steel Dynamics, Inc. (c)		11,234		364,543
Valspar Corp.		12,544		346,716
Worthington Industries (c)		8,989		159,285
				8,034,525
Telecommunication Services - 0.6%
Cincinnati Bell, Inc. (a) (c)		30,464		139,220
Telephone & Data Systems, Inc.		12,842		697,706
				836,926
Utilities - 7.7%
AGL Resources, Inc.		9,621		374,353
Alliant Energy Corp.		14,536		549,025
Aqua America, Inc. (c)		16,210		369,264
Aquila, Inc. (a) (c)		46,151		216,910
Black Hills Corp. (c)		4,106		151,676
DPL, Inc. (c)		14,089		391,392
Duquesne Light Holdings, Inc. (c)		10,858		215,531
Energy East Corp. (c)		18,253		452,674
Equitable Resources, Inc.		14,908		622,409

	SHARES		VALUE
Utilities - 7.7% (Continued)
Great Plains Energy, Inc. (c)		9,912	$	315,202
Hawaiian Electric Industries, Inc. (c)		10,028		272,260
Idacorp, Inc. (c)		5,286		204,304
MDU Resources Group, Inc. (c)		22,223		569,798
National Fuel Gas Co. (c)		10,203		393,224
Northeast Utilities (c)		18,999		535,012
NSTAR		13,181		452,899
OGE Energy Corp. (c)		11,223		448,920
ONEOK, Inc.		13,561		584,750
Pepco Holdings, Inc.		23,556		612,692
PNM Resources, Inc. (c)		9,215		286,586
Puget Energy, Inc.		14,334		363,510
SCANA Corp.		14,315		581,475
Sierra Pacific Resources (a)		27,250		458,617
Vectren Corp. (c)		9,404		265,945
Westar Energy, Inc. (c)		10,775		279,719
WGL Holdings, Inc. (c)		6,017		196,034
Wisconsin Energy Corp.		14,432		684,943
WPS Resources Corp. (c)		5,320		287,440
				11,136,564
TOTAL COMMON STOCKS
(Cost $112,051,871)				137,811,059

WARRANTS - 0.0%
Dime Bancorp
Issued by Washington Mutual, Inc., Exp. 12/26/2050 (a) (e)	1,500		218
TOTAL WARRANTS
(Cost $238)			218
UNIT INVESTMENT TRUSTS - 1.6%
Midcap SPDR Trust Series 1 (c)	15,590		2,285,494
TOTAL UNIT INVESTMENT TRUSTS
(Cost $2,300,778)			2,285,494
SHORT TERM INVESTMENTS (f) - 3.1%
Money Market Funds - 0.9%
Northern Institutional Diversified Assets Portfolio	1,336,500		1,336,500
	PRINCIPAL
	AMOUNT		VALUE
U.S. Treasury Bills - 2.2%
4.840%, 03/15/2007	$	3,100,000	$	3,070,438
TOTAL SHORT TERM INVESTMENTS
(Cost $4,406,295)				4,406,938
Total Investments
(Cost $118,759,182)(b) - 100.3%				144,503,709
Northern Institutional Liquid Asset Portfolio (d)- 34.9%				50,324,025
Liabilities in Excess of Other Assets - (35.2)%				(50,692,083	)
TOTAL NET ASSETS - 100.0%			$	144,135,651

The accompanying notes are an integral part of the financial statements.

33

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	S&P MIDCAP 400 INDEX PORTFOLIO

(a)	Non income producing security.
(b)	For federal income tax purposes, cost is $119,590,453 and gross unrealized appreciation and depreciation of securities as of December 31, 2006 was $32,124,470 and ($7,211,214), respectively, with a net appreciation / (depreciation) of $24,913,256.
(c)	All or a portion of the security is out on loan.
(d)	This security was purchased with cash collateral held from securities lending. The market value of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted is $50,445,795, $50,324,025, and $1,780,912, respectively.
(e)	Security is considered illiquid. The aggregate value of such securities is $218 or 0.0% of total net assets.
(f)	Securities and other assets with an aggregate value of $4,218,760 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of December 31, 2006:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
S&P MidCap 400 Index Mini (03/07)	17	($13,292)
S&P MidCap 400 Index (03/07)	7	($29,106)

The accompanying notes are in integral part of the financial statements.

34

Summit Mutual Funds, Inc. - Pinnacle Series
S&P MIDCAP 400 INDEX PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS
Investments in securities, at value	$	144,503,709
Collateral for securities loaned,
at fair value		50,324,025
Receivables:
Securities sold		64,012
Shares sold		55,534
Interest and dividends		108,998
Prepaid expenses and other		5,158
		195,061,436
LIABILITIES
Payables:
Payable upon return of securities loaned		50,324,025
Investment securities purchased		249,313
Shares redeemed		182,087
Variation margin		28,600
Advisory fees		55,304
Royalty fees		32,364
Professional fees		16,873
Administration fees		10,139
Fund accounting fees		9,716
Custodian fees		7,350
Other accrued expenses		10,014
		50,925,785
NET ASSETS*
Paid-in capital		111,743,952
Accumulated undistributed net investment
income / (loss)		1,172,500
Accumulated net realized gain / (loss)
on investments and futures contracts		5,517,070
Net unrealized appreciation / (depreciation)
on investments and futures contracts		25,702,129
	$	144,135,651
Investments at cost	$	118,759,182
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$144,135,651	2,081,894	$69.23

* FEDERAL TAX DATA AS OF DECEMBER 31, 2006
Percentage of ordinary distributions designated as
qualified dividend income		77.92%
Dividends received deduction for corporate shareholders		78.00%
Undistributed ordinary income	$	1,483,654
Undistributed long-term gains	$	5,994,789
Unrealized appreciation	$	24,913,256

STATEMENT OF OPERATIONS
For the year ended December 31, 2006
INVESTMENT INCOME
Interest	$	166,741
Dividends		2,095,786
Other income		40,189
		2,302,716
EXPENSES
Advisory fees		415,239
Administration fees		138,413
Fund accounting fees		29,323
Professional fees		30,433
Transfer agent fees		14,421
Directors’ fees		17,589
Custodian fees		26,247
Royalty Fee		21,262
Shareholder reporting fees		9,861
Other expenses		11,370
		714,158
NET INVESTMENT INCOME / (LOSS)		1,588,558
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		5,824,490
Net realized gain / (loss) on futures contracts		291,112
		6,115,602
Net change in unrealized appreciation /
(depreciation) on investments and
futures contracts		4,849,289
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		10,964,891
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	12,553,449

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory	Administration	Expense
Fee	Fee	Limit
0.30%	0.10%	0.60%

The accompanying notes are an integral part of the financial statements.

35

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL STATEMENTS	S&P MIDCAP 400 INDEX PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	1,588,558		$	1,010,790
Net realized gain / (loss) on investments and futures		6,115,602			4,946,482
Net change in unrealized appreciation / (depreciation) on investments
and futures contracts		4,849,289			7,053,182
		12,553,449			13,010,454
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(1,159,032	)		(557,878	)
Net realized gain on investments		(5,058,592	)		(2,313,654	)
		(6,217,624	)		(2,871,532	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		20,986,992			30,237,958
Reinvestment of distributions		6,217,624			2,871,532
Payments for shares redeemed		(16,776,702	)		(15,651,326	)
		10,427,914			17,458,164
NET INCREASE / (DECREASE) IN NET ASSETS		16,763,739			27,597,086
NET ASSETS
Beginning of period		127,371,912			99,774,826
End of period	$	144,135,651		$	127,371,912
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	1,172,500		$	923,491
FUND SHARE TRANSACTIONS
Sold		313,433			490,894
Reinvestment of distributions		92,870			49,560
Redeemed		(251,818	)		(255,214	)
Net increase / (decrease) from fund share transactions		154,485			285,240
TOTAL COST OF PURCHASES OF:
Common Stocks	$	24,438,495		$	35,027,711
	$	24,438,495		$	35,027,711
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	19,118,277		$	20,514,738
	$	19,118,277		$	20,514,738
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	1,810,900		$	973,292
Long-term capital gains		4,406,724			1,898,240
	$	6,217,624		$	2,871,532

The accompanying notes are an integral part of the financial statements.

36

Summit Mutual Funds, Inc. - Pinnacle Series   

BALANCED INDEX PORTFOLIO   

Summit Balanced Index Portfolio - Average Annual Total Return
1-Year	5-Year	Since Inception
11.02%	5.15%	3.25%

Past performance is not predictive of future results. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower.

Portfolio Data
Managers:	Gary R. Rodmaker
	Nick J. Kotsonis
	Kevin P. Aug
Inception Date:	May 3, 1999
Total Net Assets:	$28.78 Million
Number of Equity Holdings:	501
Median Cap Size:	$13,215 (in millions)
Average Price-to-book Ratio:	2.86 x
Dividend Yield:	1.80%
Number of Fixed Income Holdings:	40
Average Duration	3.63 years
Average Maturity	9.90 years
Average Credit Quality	AA+/Aa1
Current Yield	5.29%

Top 10 Equity Holdings
	(% of net assets)
Exxon Mobil Corp.	2.13%
General Electric Co.	1.80%
Citigroup, Inc.	1.29%
Microsoft Corp.	1.21%
Bank of America Corp.	1.13%
Procter & Gamble Co.	0.94%
Johnson & Johnson	0.89%
Pfizer, Inc.	0.87%
American International Group, Inc.	0.85%
Altria Group, Inc.	0.82%

Sector Allocations

37

Summit Mutual Funds, Inc. - Pinnacle Series

BALANCED INDEX PORTFOLIO

Objective - 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 Standard & Poor’s 500 Composite Stock Price Index (the “Index”) and, with respect to 40% of its assets, that correspond to the total return performance of investment grade bonds, as represented by the Lehman Brothers Aggregate Bond Index (the “Bond Index”).

Strategy - The Summit Pinnacle Balanced Index Portfolio (the “Portfolio”) will invest approximately 60% of its net assets in a portfolio of stocks included in the Index and in futures of the Index, and approximately 40% of its net assets in a portfolio of investment grade bonds designed to track the Bond Index.

Managers’ Comments:

For the year ended December 31, 2006, the Summit Balanced Index Portfolio’s total return was 11.02% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to an 11.12% total return for the Balanced Index (a hypothetical index composed of 60% of the S&P 500 Index and 40% of the Lehman Aggregate Bond Index, which had total returns of 15.79% and 4.33%, respectively). The difference of 0.10% is referred to as “tracking error” and is attributed to a number of factors, including the Portfolio’s operating expenses. These expenses represent the Portfolio’s costs for advisory, administration, accounting, custody and other services. Other factors include the timing and size of cash flows into and out of the Portfolio and related holdings of cash and cash equivalents; brokers’ commissions or other trading costs; holding security positions in amounts that are different than the weightings in the Index; and maintaining stock and bond portfolio holdings in a ratio different from the 60%/40% default ratio, among others. While an exact replication of the capitalization weightings of securities in the Index is not feasible, the Portfolio’s objectives and strategies call for a correlation of at least 95% between the Portfolio’s pre-expense total return and that of the Index. The Portfolio achieved this level of correlation for the period presented.

38

Summit Mutual Funds, Inc. - Pinnacle Series
BALANCED INDEX PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

Computed on the basis of a share of capital stock outstanding throughout the period. Share amounts and net asset values have been adjusted as a result of the 1-for-5 reverse stock split on February 15, 2002.

				Year Ended December 31,
	2006			2005			2004			2003			2002
Net asset value, beginning of period	$	45.74		$	45.55		$	43.05		$	37.50		$	43.85
INVESTMENT ACTIVITIES:
Net investment income / (loss)		1.16			1.07			0.95	(2)		0.95			1.13
Net realized and unrealized gains / (losses)		3.80			0.28			2.27			5.57			(6.01	)
Total from Investment Activities		4.96			1.35			3.22			6.52			(4.88	)
DISTRIBUTIONS:
Net investment income		(1.12	)		(1.16	)		(0.72	)		(0.97	)		(1.47	)
Total Distributions		(1.12	)		(1.16	)		(0.72	)		(0.97	)		(1.47	)
Net asset value, end of period	$	49.58		$	45.74		$	45.55		$	43.05		$	37.50
Total return		11.02	%		3.04	%		7.59	%		17.70	%		-11.27	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(1)		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of expenses to average net assets - gross		0.69	%		0.70	%		0.71	%		1.01	%		1.10	%
Ratio of net investment income / (loss) to average net assets		2.36	%		2.25	%		2.23	%		2.31	%		2.78	%
Portfolio turnover rate		21.19	%		3.85	%		21.20	%		25.45	%		15.34	%
Net assets, end of period (000’s)	$	28,784		$	29,316		$	33,356		$	11,667		$	10,638

(1)	Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.
(2)	Per share amounts are based on average shares outstanding.

The accompanying notes are an integral part of the financial statements.

39

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	BALANCED INDEX PORTFOLIO

DECEMBER 31, 2006
	SHARES		VALUE
COMMON STOCKS - 60.0%
Consumer Discretionary - 6.6%
Amazon.com, Inc. (a)		460	$	18,152
Apollo Group, Inc. (a)		185		7,209
Autonation, Inc. (a)		203		4,328
Autozone, Inc. (a)		93		10,747
Bed Bath & Beyond, Inc. (a)		373		14,211
Best Buy Co., Inc.		537		26,415
Big Lots, Inc. (a) (d)		190		4,355
The Black & Decker Corp.		135		10,796
Brunswick Corp.		163		5,200
Carnival Corp.		588		28,841
CBS Corporation		1,031		32,147
Centex Corp.		157		8,834
Circuit City Stores, Inc.		215		4,081
Clear Channel Communications, Inc.		656		23,314
Coach, Inc. (a)		484		20,793
Comcast Corp. - Class A (a)		2,763		116,958
D.R. Horton, Inc.		406		10,755
Darden Restaurants, Inc.		225		9,038
Dillard’s, Inc. - Class A (d)		108		3,777
The DIRECTV Group, Inc. (a)		1,030		25,688
Dollar General Corp. (d)		412		6,617
Dow Jones & Co., Inc. (d)		98		3,724
E.W. Scripps Co.		130		6,492
Eastman Kodak Co. (d)		429		11,068
eBay, Inc. (a)		1,551		46,639
Family Dollar Stores, Inc.		232		6,805
Federated Department Stores, Inc.		718		27,377
Ford Motor Co. (d)		2,484		18,655
Fortune Brands, Inc.		244		20,835
Gannett Co., Inc.		313		18,924
The Gap, Inc.		712		13,884
General Motors Corp. (d)		747		22,948
Genuine Parts Co.		260		12,332
The Goodyear Tire & Rubber Co. (a) (d)		263		5,520
H&R Block, Inc.		426		9,815
Harley-Davidson, Inc.		347		24,453
Harman International Industries, Inc.		100		9,991
Harrah’s Entertainment, Inc.		274		22,665
Hasbro, Inc.		217		5,913
Hilton Hotels Corp.		510		17,799
The Home Depot, Inc.		2,725		109,436
IAC/InterActiveCorp (a)		300		11,148
International Game Technology		449		20,744
Interpublic Group of Cos., Inc. (a) (d)		631		7,723
J.C. Penney Co., Inc.		297		22,976
Johnson Controls, Inc.		288		24,745
Jones Apparel Group, Inc.		198		6,619
KB Home (d)		130		6,666
Kohl’s Corp. (a)		433		29,630
Leggett & Platt, Inc.		282		6,740
Lennar Corp.		220		11,541
Limited Brands, Inc.		449		12,994
Liz Claiborne, Inc.		179		7,779
Lowe’s Companies, Inc.		2,018		62,861
Marriott International, Inc. - Class A		454		21,665
Mattel, Inc.		500		11,330

	SHARES		VALUE
Consumer Discretionary - 6.6% (Continued)
McDonald’s Corp.		1,619	$	71,770
The McGraw-Hill Cos., Inc.		465		31,629
Meredith Corp.		70		3,944
New York Times Co. - Class A (d)		191		4,653
Newell Rubbermaid, Inc.		411		11,898
News Corp. - Class A		3,087		66,309
Nike, Inc. - Class B		285		28,224
Nordstrom, Inc.		331		16,332
Office Depot, Inc. (a)		374		14,276
OfficeMax, Inc. (d)		118		5,859
Omnicom Group		272		28,435
Pulte Homes, Inc.		320		10,598
RadioShack Corp. (d)		225		3,776
Sears Holdings Corp. (a)		110		18,472
The Sherwin-Williams Co.		190		12,080
Snap-On, Inc.		97		4,621
The Stanley Works		121		6,085
Staples, Inc.		960		25,632
Starbucks Corp. (a)		999		35,385
Starwood Hotels & Resorts Worldwide, Inc.		325		20,313
Target Corp.		1,134		64,695
Tiffany & Co. (d)		183		7,181
Time Warner, Inc.		5,370		116,959
TJX Cos., Inc.		594		16,941
Tribune Co. (d)		291		8,957
Univision Communications, Inc. (a) (d)		344		12,184
VF Corp.		149		12,230
Viacom, Inc. - Class B (a)		938		38,486
The Walt Disney Co.		2,761		94,619
Wendy’s International, Inc.		193		6,386
Whirlpool Corp. (d)		128		10,627
Wyndham Worldwide Corp. (a)		312		9,990
Yum! Brands, Inc.		358		21,050
				1,913,288
Consumer Staples - 5.5%
Altria Group, Inc.		2,764		237,206
Anheuser-Busch Cos., Inc.		1,016		49,987
Archer-Daniels-Midland Co.		866		27,677
Avon Products, Inc.		591		19,527
Brown-Forman Corp. - Class B		139		9,207
Campbell Soup Co.		276		10,734
Clorox Co.		200		12,830
The Coca-Cola Co.		2,691		129,841
Coca-Cola Enterprises, Inc.		364		7,433
Colgate-Palmolive Co.		682		44,494
ConAgra Foods, Inc.		675		18,225
Constellation Brands, Inc. - Class A (a)		293		8,503
Costco Wholesale Corp.		618		32,674
CVS Corp.		1,085		33,537
Dean Foods Co. (a)		200		8,456
The Estee Lauder Cos., Inc.		180		7,348
General Mills, Inc.		466		26,842
The Hershey Co.		274		13,645
HJ Heinz Co.		438		19,714
Kellogg Co.		330		16,520
Kimberly-Clark Corp.		605		41,110

The accompanying notes are an integral part of the financial statements.

40

Summit Mutual Funds, Inc. - Pinnacle Series
BALANCED INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Consumer Staples - 5.5% (Continued)
The Kroger Co.		954	$	22,009
McCormick & Co., Inc.		224		8,637
Molson Coors Brewing Co. - Class B		96		7,338
Pepsi Bottling Group, Inc.		180		5,564
PepsiCo, Inc.		2,177		136,171
Procter & Gamble Co.		4,192		269,420
Reynolds American, Inc. (d)		227		14,862
Safeway, Inc.		588		20,321
Sara Lee Corp.		1,005		17,115
Supervalu, Inc.		327		11,690
Sysco Corp.		817		30,033
Tyson Foods, Inc. - Class A		375		6,169
UST, Inc.		245		14,259
Walgreen Co.		1,332		61,125
Wal-Mart Stores, Inc.		3,248		149,993
Whole Foods Market, Inc. (d)		200		9,386
WM Wrigley Jr. Co.		335		17,326
				1,576,928
Energy - 5.9%
Anadarko Petroleum Corp.		607		26,417
Apache Corp.		435		28,932
Baker Hughes, Inc.		435		32,477
BJ Services Co.		395		11,581
Chesapeake Energy Corp.		530		15,396
Chevron Corp.		2,903		213,458
ConocoPhillips		2,176		156,563
Devon Energy Corp.		583		39,108
El Paso Corp.		919		14,042
EOG Resources, Inc.		359		22,420
Exxon Mobil Corp.		8,019		614,496
Halliburton Co.		1,362		42,290
Hess Corp.		319		15,813
Kinder Morgan, Inc.		160		16,920
Marathon Oil Corp.		473		43,753
Murphy Oil Corp.		274		13,933
Nabors Industries Ltd. (a) (d)		418		12,448
National Oilwell Varco, Inc. (a)		259		15,846
Noble Corp.		229		17,438
Occidental Petroleum Corp.		1,138		55,569
Peabody Energy Corp.		360		14,548
Rowan Cos., Inc.		182		6,042
Schlumberger Ltd.		1,564		98,782
Smith International, Inc.		275		11,294
Sunoco, Inc.		173		10,788
Transocean, Inc. (a)		416		33,650
Valero Energy Corp.		810		41,440
Weatherford International Ltd. (a)		462		19,307
Williams Companies, Inc.		787		20,556
XTO Energy, Inc.		483		22,725
				1,688,032
Financials - 13.3%
ACE Ltd.		430		26,045
AFLAC, Inc.		656		30,176
The Allstate Corp.		832		54,172
AMBAC Financial Group, Inc.		179		15,944
American Express Co.		1,604		97,315
American International Group, Inc.		3,430		245,794

	SHARES		VALUE
Financials - 13.3% (Continued)
Ameriprise Financial, Inc.		371	$	20,219
AON Corp.		416		14,701
Apartment Investment & Management Co.		160		8,963
Archstone-Smith Trust		316		18,394
Bank of America Corp.		6,106		325,999
The Bank of New York Co., Inc.		1,008		39,685
BB&T Corp.		709		31,146
The Bear Stearns Companies, Inc.	��	188		30,603
Boston Properties, Inc.		140		15,663
Capital One Financial Corp.		553		42,481
CB Richard Ellis Group, Inc. (a)		250		8,300
The Charles Schwab Corp.		1,366		26,418
Chicago Mercantile Exchange Holdings, Inc.		50		25,487
Chubb Corp.		592		31,323
Cincinnati Financial Corp.		261		11,826
CIT Group, Inc.		301		16,787
Citigroup, Inc.		6,667		371,352
Comerica, Inc.		250		14,670
Commerce Bancorp, Inc. (d)		280		9,876
Compass Bancshares, Inc.		208		12,407
Countrywide Financial Corp.		809		34,342
E*Trade Financial Corp. (a)		565		12,667
Equity Office Properties Trust		463		22,303
Equity Residential		429		21,772
Fannie Mae		1,279		75,960
Federated Investors, Inc.		142		4,797
Fifth Third Bancorp		737		30,165
First Horizon National Corp. (d)		209		8,732
Franklin Resources, Inc.		248		27,322
Freddie Mac		913		61,993
Genworth Financial, Inc.		601		20,560
Goldman Sachs Group, Inc.		570		113,630
Hartford Financial Services Group, Inc.		447		41,710
Huntington Bancshares, Inc.		345		8,194
JPMorgan Chase & Co.		4,584		221,407
Janus Capital Group, Inc.		273		5,894
KeyCorp		533		20,270
Kimco Realty Corp.		300		13,485
Legg Mason, Inc.		200		19,010
Lehman Brothers Holdings, Inc.		710		55,465
Lincoln National Corp.		380		25,232
Loews Corp.		604		25,048
M&T Bank Corp.		135		16,492
Marsh & McLennan Cos., Inc.		727		22,290
Marshall & Ilsley Corp.		336		16,165
MBIA, Inc. (d)		224		16,365
Mellon Financial Corp.		544		22,930
Merrill Lynch & Co., Inc.		1,171		109,020
Metlife, Inc.		1,003		59,187
MGIC Investment Corp.		156		9,756
Moody’s Corp.		313		21,616
Morgan Stanley		1,416		115,305
National City Corp.		848		31,003
Northern Trust Corp.		277		16,811
Plum Creek Timber Co., Inc.		275		10,959
PNC Financial Services Group, Inc.		434		32,133
Principal Financial Group, Inc.		356		20,897
The Progressive Corp.		1,020		24,704

The accompanying notes are an integral part of the financial statements.

41

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	BALANCED INDEX PORTFOLIO

	SHARES		VALUE
Financials - 13.3% (Continued)
Prologis		369	$	22,424
Prudential Financial, Inc.		641		55,036
Public Storage, Inc.		138		13,455
Realogy Corp. (a)		283		8,581
Regions Financial Corp.		962		35,979
Safeco Corp. (d)		154		9,633
Simon Property Group, Inc.		273		27,652
SLM Corp.		542		26,433
Sovereign Bancorp, Inc. (d)		474		12,035
The St. Paul Travelers Cos., Inc.		913		49,019
State Street Corp.		438		29,539
SunTrust Banks, Inc.		482		40,705
Synovus Financial Corp.		466		14,367
T. Rowe Price Group, Inc.		346		15,144
Torchmark Corp.		174		11,094
UnumProvident Corp. (d)		445		9,247
US Bancorp		2,347		84,938
Vornado Realty Trust		197		23,936
Wachovia Corp.		2,499		142,318
Washington Mutual, Inc.		1,273		57,909
Wells Fargo & Co.		4,446		158,100
XL Capital Ltd. - Class A		235		16,925
Zions Bancorporation		151		12,448
				3,838,254
Health Care - 7.1%
Abbott Laboratories		2,018		98,297
Aetna, Inc.		724		31,262
Allergan, Inc.		219		26,223
AmerisourceBergen Corp.		267		12,004
Amgen, Inc. (a)		1,547		105,676
Applera Corp. - Applied Biosystems Group		242		8,879
Barr Pharmaceuticals, Inc. (a)		160		8,019
Bausch & Lomb, Inc. (d)		90		4,685
Baxter International, Inc.		862		39,988
Becton, Dickinson & Co.		323		22,659
Biogen Idec, Inc. (a)		454		22,332
Biomet, Inc.		372		15,352
Boston Scientific Corp. (a)		1,557		26,749
Bristol-Myers Squibb Co.		2,598		68,379
C.R. Bard, Inc.		176		14,603
Cardinal Health, Inc.		536		34,535
Caremark Rx, Inc.		564		32,210
Celgene Corp. (a)		475		27,327
CIGNA Corp.		147		19,341
Coventry Health Care, Inc. (a)		210		10,511
Eli Lilly & Co.		1,299		67,678
Express Scripts, Inc. (a)		182		13,031
Forest Laboratories, Inc. (a)		421		21,303
Genzyme Corp. (a)		383		23,585
Gilead Sciences, Inc. (a)		604		39,218
Health Management Associates, Inc. - Class A		317		6,692
Hospira, Inc. (a)		208		6,985
Humana, Inc. (a)		218		12,058
IMS Health, Inc.		267		7,337
Johnson & Johnson		3,863		255,035
King Pharmaceuticals, Inc. (a)		361		5,747
Laboratory Corp. Of America Holdings (a)		166		12,196

	SHARES		VALUE
Health Care - 7.1% (Continued)
Manor Care, Inc.		132	$	6,193
McKesson Corp.		396		20,077
Medco Health Solutions, Inc. (a)		389		20,788
MedImmune, Inc. (a)		317		10,261
Medtronic, Inc.		1,518		81,228
Merck & Co., Inc.		2,874		125,306
Millipore Corp. (a) (d)		86		5,728
Mylan Laboratories, Inc.		327		6,527
Patterson Cos., Inc. (a)		220		7,812
PerkinElmer, Inc.		167		3,712
Pfizer, Inc.		9,630		249,417
Quest Diagnostics, Inc.		214		11,342
Schering-Plough Corp.		1,957		46,264
St. Jude Medical, Inc. (a)		466		17,037
Stryker Corp.		434		23,918
Tenet Healthcare Corp. (a)		623		4,342
Thermo Fisher Scientific, Inc. (a)		617		27,944
UnitedHealth Group, Inc.		1,779		95,586
Waters Corp. (a)		136		6,660
Watson Pharmaceuticals, Inc. (a)		174		4,529
Wellpoint, Inc. (a)		819		64,447
Wyeth		1,777		90,485
Zimmer Holdings, Inc. (a)		369		28,922
				2,058,421
Industrials - 6.6%
3M Co.		995		77,540
Allied Waste Industries, Inc. (a)		326		4,007
American Power Conversion Corp.		256		7,831
American Standard Cos., Inc.		274		12,563
Avery Dennison Corp.		125		8,491
Boeing Co.		1,050		93,282
Burlington Northern Santa Fe Corp.		478		35,281
Caterpillar, Inc.		866		53,112
Cintas Corp.		181		7,188
Cooper Industries Ltd. - Class A		155		14,017
CSX Corp.		586		20,176
Cummins, Inc.		78		9,218
Danaher Corp.		355		25,716
Deere & Co.		306		29,091
Dover Corp.		302		14,804
Eaton Corp.		246		18,484
Emerson Electric Co.		1,078		47,529
Equifax, Inc.		168		6,821
FedEx Corp.		452		49,096
Fluor Corp.		145		11,839
General Dynamics Corp.		533		39,629
General Electric Co.		13,923		518,075
Goodrich Corp.		203		9,247
Honeywell International, Inc.		1,082		48,950
Illinois Tool Works, Inc.		555		25,636
Ingersoll-Rand Company Ltd. - Class A		425		16,630
ITT Corp.		244		13,864
L-3 Communications Holdings, Inc.		198		16,192
Lockheed Martin Corp.		471		43,365
Masco Corp.		526		15,712
Monster Worldwide, Inc. (a)		204		9,515
Norfolk Southern Corp.		547		27,509

The accompanying notes are an integral part of the financial statements.

42

Summit Mutual Funds, Inc. - Pinnacle Series
BALANCED INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Industrials - 6.6% (Continued)
Northrop Grumman Corp.		455	$	30,804
Paccar, Inc.		330		21,417
Pall Corp.		208		7,186
Parker Hannifin Corp.		200		15,376
Pitney Bowes, Inc.		342		15,797
Raytheon Co.		593		31,310
Robert Half International, Inc.		253		9,391
Rockwell Automation, Inc.		271		16,553
Rockwell Collins, Inc.		264		16,709
RR Donnelley & Sons Co.		321		11,408
Ryder System, Inc.		107		5,463
Southwest Airlines Co.		1,038		15,902
Terex Corp. (a) (d)		140		9,041
Textron, Inc.		167		15,660
Tyco International Ltd.		2,661		80,894
Union Pacific Corp.		394		36,256
United Parcel Service, Inc. - Class B		1,428		107,071
United Technologies Corp.		1,336		83,527
W.W. Grainger, Inc.		127		8,882
Waste Management, Inc.		714		26,254
				1,895,311
Information Technology - 8.8%
ADC Telecommunications, Inc. (a)		195		2,833
Adobe Systems, Inc. (a)		765		31,457
Advanced Micro Devices, Inc. (a)		642		13,065
Affiliated Computer Services, Inc. - Class A (a)		157		7,668
Agilent Technologies, Inc. (a)		540		18,819
Altera Corp. (a)		475		9,348
Analog Devices, Inc.		466		15,317
Apple Computer, Inc. (a)		1,123		95,275
Applied Materials, Inc.		1,835		33,856
Autodesk, Inc. (a)		341		13,797
Automatic Data Processing, Inc.		734		36,150
Avaya, Inc. (a)		633		8,849
BMC Software, Inc. (a)		271		8,726
Broadcom Corp. - Class A (a)		620		20,032
CA, Inc.		543		12,299
Ciena Corp. (a) (d)		123		3,408
Cisco Systems, Inc. (a)		8,060		220,280
Citrix Systems, Inc. (a)		255		6,898
Cognizant Technology Solutions Corp. (a)		200		15,432
Computer Sciences Corp. (a)		276		14,730
Compuware Corp. (a)		492		4,098
Comverse Technology, Inc. (a) (d)		301		6,354
Convergys Corp. (a)		184		4,376
Corning, Inc. (a)		2,060		38,543
Dell, Inc. (a)		2,999		75,245
Electronic Arts, Inc. (a)		453		22,813
Electronic Data Systems Corp.		684		18,844
EMC Corp. (a)		3,037		40,088
Fidelity National Information Services, Inc.		220		8,820
First Data Corp.		1,011		25,801
Fiserv, Inc. (a)		231		12,109
Google, Inc. (a)		285		131,237
Hewlett-Packard Co.		3,617		148,984
Intel Corp.		7,615		154,204
International Business Machines Corp.		2,009		195,174

	SHARES		VALUE
Information Technology - 8.8% (Continued)
Intuit, Inc. (a)		452	$	13,791
Jabil Circuit, Inc.		257		6,309
JDS Uniphase Corp. (a)		278		4,632
Juniper Networks, Inc. (a)		747		14,148
Kla-Tencor Corp.		295		14,676
Lexmark International, Inc. - Class A (a) (d)		133		9,736
Linear Technology Corp.		398		12,067
LSI Logic Corp. (a) (d)		529		4,761
Maxim Integrated Products, Inc.		424		12,983
Micron Technology, Inc. (a)		965		13,471
Microsoft Corp.		11,643		347,661
Molex, Inc.		187		5,915
Motorola, Inc.		3,234		66,491
National Semiconductor Corp.		394		8,944
NCR Corp. (a)		278		11,887
Network Appliance, Inc. (a)		492		19,326
Novell, Inc. (a)		449		2,784
Novellus Systems, Inc. (a)		163		5,610
Nvidia Corp. (a)		504		18,653
Oracle Corp. (a)		5,328		91,322
Paychex, Inc.		447		17,674
PMC - Sierra, Inc. (a) (d)		272		1,825
QLogic Corp. (a)		243		5,327
Qualcomm, Inc.		2,181		82,420
Sabre Holdings Corp. - Class A		219		6,984
SanDisk Corp. (a)		280		12,048
Sanmina-SCI Corp. (a)		706		2,436
Solectron Corp. (a)		1,212		3,903
Sun Microsystems, Inc. (a)		4,633		25,111
Symantec Corp. (a)		1,306		27,230
Symbol Technologies, Inc.		363		5,423
Tektronix, Inc.		141		4,113
Tellabs, Inc. (a)		592		6,074
Teradyne, Inc. (a)		294		4,398
Texas Instruments, Inc.		2,024		58,291
Unisys Corp. (a)		455		3,567
VeriSign, Inc. (a)		324		7,792
Western Union Co.		1,011		22,667
Xerox Corp. (a)		1,292		21,899
Xilinx, Inc.		449		10,691
Yahoo!, Inc. (a)		1,642		41,937
				2,531,906
Materials - 1.9%
Air Products & Chemicals, Inc.		331		23,263
Alcoa, Inc.		1,145		34,361
Allegheny Technologies, Inc.		141		12,786
Ashland, Inc.		124		8,578
Ball Corp.		182		7,935
Bemis Co.		179		6,082
Consol Energy, Inc.		280		8,996
The Dow Chemical Co.		1,267		50,604
Eastman Chemical Co.		136		8,066
Ecolab, Inc.		275		12,430
EI Du Pont de Nemours & Co.		1,217		59,280
Freeport-McMoRan Copper & Gold, Inc. - Class B (d)		265		14,769
Hercules, Inc. (a)		189		3,650
International Flavors & Fragrances, Inc.		137		6,735

The accompanying notes are an integral part of the financial statements.

43

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	BALANCED INDEX PORTFOLIO

	SHARES		VALUE
Materials - 1.9% (Continued)
International Paper Co.	601	$	20,494
MeadWestvaco Corp.	275		8,267
Monsanto Co.	717		37,664
Newmont Mining Corp.	594		26,819
Nucor Corp.	408		22,301
Pactiv Corp. (a)	183		6,531
Phelps Dodge Corp.	270		32,324
PPG Industries, Inc.	254		16,309
Praxair, Inc.	426		25,275
Rohm & Haas Co.	190		9,713
Sealed Air Corp.	139		9,024
Sigma-Aldrich Corp. (d)	113		8,782
Temple-Inland, Inc.	189		8,700
United States Steel Corp.	191		13,970
Vulcan Materials Co.	171		15,368
Weyerhaeuser Co.	366		25,858
			544,934
Telecommunication Services - 2.1%
Alltel Corp.	513		31,026
AT&T, Inc.	5,130		183,397
BellSouth Corp.	2,398		112,970
CenturyTel, Inc.	154		6,724
Citizens Communications Co. (d)	424		6,093
Embarq Corp.	218		11,458
Qwest Communications International, Inc. (a) (d)	2,116		17,711
Sprint Nextel Corp.	3,944		74,502
Verizon Communications, Inc.	3,828		142,555
Windstream Corp.	626		8,902
			595,338
Utilities - 2.2%
The AES Corp. (a)	874		19,263
Allegheny Energy, Inc. (a)	243		11,156
Ameren Corp. (d)	304		16,334
American Electric Power Co., Inc.	521		22,184
Centerpoint Energy, Inc.	462		7,660
CMS Energy Corp. (a) (d)	327		5,461
Consolidated Edison, Inc. (d)	365		17,545
Constellation Energy Group, Inc.	266		18,319
Dominion Resources, Inc.	508		42,591
DTE Energy Co. (d)	266		12,877
Duke Energy Corporation	1,655		54,963
Dynegy, Inc. - Class A (a)	500		3,620
Edison International	431		19,602
Entergy Corp.	310		28,619
Exelon Corp.	885		54,773
FirstEnergy Corp.	436		26,291
FPL Group, Inc. (d)	535		29,115
KeySpan Corp.	260		10,707
Nicor, Inc. (d)	74		3,463
NiSource, Inc.	407		9,809
Peoples Energy Corp.	64		2,852
PG&E Corp.	460		21,772
Pinnacle West Capital Corp.	165		8,364
PPL Corp.	504		18,063
Progress Energy, Inc.	375		18,405
Public Service Enterprise Group, Inc.	357		23,698
Questar Corp.	120		9,966

	SHARES		VALUE
Utilities - 2.2% (Continued)
Sempra Energy		382	$	21,407
The Southern Co.		981		36,160
TECO Energy, Inc.		310		5,341
TXU Corp.		610		33,068
Xcel Energy, Inc. (d)		537		12,383
				625,831
TOTAL COMMON STOCKS
(Cost $12,941,732)				17,268,243
		PRINCIPAL AMOUNT		VALUE
CORPORATE BONDS - 6.8%
Consumer Staples - 0.4%
Campbell Soup Co.
5.875%, 10/01/2008	$	100,000	$	100,797
Energy - 1.7%
Burlington Resources Finance Co.
6.500%, 12/01/2011		150,000		157,747
Colonial Pipeline Co.
7.750%, 11/01/2010 (b)		125,000		135,439
Conoco Funding Co.
6.350%, 10/15/2011		50,000		52,272
Public Service Co. of North Carolina, Inc.
6.625%, 02/15/2011		150,000		156,660
				502,118
Financials - 1.5%
Key Bank National Association
5.000%, 07/17/2007 (d)		100,000		99,701
TIAA Global Markets, Inc.
4.125%, 11/15/2007 (b)		150,000		148,374
Union Planters Corp.
4.375%, 12/01/2010 (d)		190,000		184,708
				432,783
Health Care - 0.5%
Amgen, Inc.
6.500%, 12/01/2007		150,000		150,999
Industrials - 1.8%
Honeywell International, Inc.
7.500%, 03/01/2010 (d)		125,000		133,287
Masco Corp.
5.875%, 07/15/2012		125,000		125,138
United Technologies Corp.
4.375%, 05/01/2010		250,000		244,211
				502,636
Materials - 0.9%
Weyerhaeuser Co.
7.500%, 03/01/2013		250,000		268,129
TOTAL CORPORATE BONDS
(Cost $2,000,191)				1,957,462

The accompanying notes are an integral part of the financial statements.

44

Summit Mutual Funds, Inc. - Pinnacle Series
BALANCED INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	PRINCIPAL
	AMOUNT		VALUE
MORTGAGE BACKED SECURITIES - 12.2%
Fannie Mae Pool
Pool #500823, 7.000%, 07/01/2029	$	349,101	$	359,905
Pool #653650, 6.500%, 08/01/2032		85,447		87,015
Pool #722267, 5.500%, 07/01/2033		245,528		243,025
Pool #732114, 6.000%, 08/01/2033		229,906		231,845
Pool #357457, 5.500%, 11/01/2033		491,747		486,735
Freddie Mac (Gold) Pool
Pool #E9-6460, 5.000%, 05/01/2018		602,869		593,627
Pool #E9-9160, 4.500%, 09/01/2018		125,861		121,596
Pool #G0-8146, 6.000%, 08/01/2036		775,849		781,587
Ginnie Mae Pool
Pool #003583M, 5.500%, 07/20/2034		600,734		596,717
TOTAL MORTGAGE BACKED SECURITIES
(Cost $3,588,601)				3,502,052
U.S. GOVERNMENT AGENCY ISSUES - 3.8%
Federal National Mortgage Association
5.050%, 02/07/2011		1,100,000		1,104,701
TOTAL U.S. GOVERNMENT AGENCY ISSUES
(Cost $1,106,485)				1,104,701
U.S. TREASURY OBLIGATIONS - 13.4%
U.S. Treasury Bonds
6.250%, 08/15/2023 (d)		250,000		287,754
5.250%, 11/15/2028 (d)		200,000		209,734
6.125%, 08/15/2029 (d)		195,000		227,906
U.S. Treasury Notes
6.125%, 08/15/2007 (d)		100,000		100,633
4.000%, 08/31/2007 (d)		200,000		198,641
5.500%, 02/15/2008 (d)		200,000		201,109
4.625%, 02/29/2008 (d)		200,000		199,156
4.750%, 11/15/2008 (d)		200,000		199,742
3.375%, 12/15/2008 (d)		84,000		81,779
4.500%, 02/15/2009 (d)		200,000		198,789
6.000%, 08/15/2009 (d)		50,000		51,510
5.750%, 08/15/2010 (d)		180,000		186,209

	PRINCIPAL
	AMOUNT		VALUE
U.S. TREASURY OBLIGATIONS - 13.4% (Continued)
U.S. Treasury Notes(Continued)
4.250%, 01/15/2011 (d)	$	300,000	$	295,031
4.875%, 02/15/2012 (d)		1,100,000		1,110,055
4.375%, 08/15/2012 (d)		100,000		98,563
3.625%, 05/15/2013 (d)		234,000		220,481
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $3,897,185)				3,867,092
		SHARES		VALUE
UNIT INVESTMENT TRUSTS - 1.2%
iShares Lehman Aggregate Bond Fund		800	$	79,760
SPDR Trust Series 1 (d)		1,875		265,669
TOTAL UNIT INVESTMENT TRUSTS
(Cost $329,972)				345,429
SHORT TERM INVESTMENTS (f) - 2.5%
Money Market Funds - 2.2%
Northern Institutional Diversified Assets Portfolio		620,214		620,214
		PRINCIPAL
		AMOUNT		VALUE
U.S. Treasury Bills - 0.3%
4.840%, 03/15/2007	$	100,000	$	99,046
TOTAL SHORT TERM INVESTMENTS
(Cost $719,240)				719,260
Total Investments (Cost $24,583,406) (c) - 99.9%				28,764,239
Northern Institutional Liquid Assets Portfolio (e) - 15.5%				4,467,067
Liabilities in Excess of Other Assets - (15.4)%				(4,447,519	)
TOTAL NET ASSETS - 100.0%			$	28,783,787

(a)	Non income producing security.
(b)	Security exempt from registration under Rule 144(a) of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified
	institutional buyers.
(c)	For federal income tax purposes, cost is $24,639,678 and gross unrealized appreciation and depreciation of securities as of December 31, 2006 was $4,898,821 and $(774,260), respectively, with a net appreciation / (depreciation) of $4,124,561.
(d)	All or a portion of the security is out on loan.
(e)	This security was purchased with cash collateral held from securities lending. The market value of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted is $4,961,288, $4,467,067, and $669,543, respectively.
(f)	Securities and other assets with an aggregate value of $499,940 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of December 31, 2006:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
S&P 500 Mini Futures (03/07)	7	$1,095

The accompanying notes are in integral part of the financial statements.

45

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL STATEMENTS	BALANCED INDEX PORTFOLIO

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS
Investments in securities, at value	$	28,764,239
Collateral for securities loaned,
at fair value		4,467,067
Receivables:
Securities sold		2,916
Shares sold		79
Interest and dividends		157,232
Prepaid expenses and other		910
		33,392,443
LIABILITIES
Payables:
Payable upon return of securities loaned		4,467,067
Shares redeemed		91,581
Variation margin		1,890
Professional fees		17,069
Fund accounting fees		9,029
Advisory fees		6,534
Royalty fees		4,310
Custodian fees		4,010
Administration fees		1,649
Directors’ fees		47
Other accrued expenses		5,470
		4,608,656
NET ASSETS*
Paid-in capital		26,046,936
Accumulated undistributed net investment
income / (loss)		119,128
Accumulated net realized gain / (loss)
on investments and futures contracts		(1,564,205	)
Net unrealized appreciation / (depreciation)
on investments and futures contracts		4,181,928
	$	28,783,787
Investments at cost	$	24,583,406
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$28,783,787	580,566	$49.58

* FEDERAL TAX DATA AS OF DECEMBER 31, 2006
Percentage of ordinary distributions designated as
qualified dividend income		47.51%
Dividends received deduction for corporate shareholders		47.15%
Undistributed ordinary income	$	119,128
Unrealized appreciation	$	4,124,561

Capital Loss Carryforward Expiring December 31:
2010	2012	2013
$(300,045)	$(629,782)	$(576,478)

STATEMENT OF OPERATIONS
For the year ended December 31, 2006
INVESTMENT INCOME
Interest	$	496,145
Dividends		353,961
Other income		2,664
		852,770
EXPENSES
Advisory fees		86,482
Fund accounting fees		31,580
Administration fees		28,827
Professional fees		19,541
Transfer agent fees		11,548
Custodian fees		10,307
Directors’ fees		3,635
Shareholder reporting fees		2,865
Royalty fees		1,880
Other expenses		3,248
		199,913
Reimbursements and Waivers		(26,949	)
		172,964
NET INVESTMENT INCOME / (LOSS)		679,806
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		(33,247	)
Net realized gain / (loss) on futures		68,844
		35,597
Net change in unrealized appreciation /
(depreciation) on investments and
futures contracts		2,287,546
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		2,323,143
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	3,002,949

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit	and Waivers
0.30%	0.10%	0.60%	$26,949

The accompanying notes are an integral part of the financial statements.

46

Summit Mutual Funds, Inc. - Pinnacle Series
BALANCED INDEX PORTFOLIO	FINANCIAL STATEMENTS

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	679,806		$	694,842
Net realized gain / (loss) on investments and futures		35,597			(508,983	)
Net change in unrealized appreciation / (depreciation) on investments and futures contracts		2,287,546			701,835
		3,002,949			887,694
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(684,111	)		(793,393	)
		(684,111	)		(793,393	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		2,102,410			1,895,604
Reinvestment of distributions		684,111			793,393
Payments for shares redeemed		(5,637,391	)		(6,823,962	)
		(2,850,870	)		(4,134,965	)
NET INCREASE / (DECREASE) IN NET ASSETS		(532,032	)		(4,040,664	)
NET ASSETS
Beginning of period		29,315,819			33,356,483
End of period	$	28,783,787		$	29,315,819
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	119,128		$	105,467

FUND SHARE TRANSACTIONS
Sold	44,594			42,136
Reinvestment of distributions	14,655			17,700
Redeemed	(119,602		)	(151,195		)
Net increase / (decrease) from fund share transactions	(60,353		)	(91,359		)
TOTAL COST OF PURCHASES OF:
Common Stocks	$	1,578,727		$	841,020
U.S. Government Securities		3,916,122
Corporate Bonds		423,178			301,187
	$	5,918,027		$	1,142,207
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	3,189,054		$	3,825,429
U.S. Government Securities		2,616,941			1,864,874
Corporate Bonds		1,217,905			342,899
	$	7,023,900		$	6,033,202
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	684,111		$	793,393
	$	684,111		$	793,393

The accompanying notes are an integral part of the financial statements.

47

Summit Mutual Funds, Inc. - Pinnacle Series

NASDAQ-100 INDEX PORTFOLIO

Summit Nasdaq-100 Index Portfolio - Average Annual Total Return
1-Year	3-Year	Since Inception
6.67%	5.95%	-10.05%

Past performance is not predictive of future results. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower.

Portfolio Data
Managers:	Gary R. Rodmaker
	Nick J. Kotsonis
	Kevin P. Aug
Inception Date:	April 27, 2000
Total Net Assets:	$26.11 Million
Number of Equity Holdings:	100
Median Cap Size:	$9,581 (in millions)
Average Price-to-book Ratio:	4.22 x
Dividend Yield:	0.42%

Top 10 Equity Holdings
		(% of net assets)
Microsoft Corp.		6.69%
Apple Computer,	Inc.	6.67%
Qualcomm, Inc.		4.99%
Google, Inc.		4.14%
Cisco Systems,	Inc.	3.92%
Intel Corp.		2.70%
Comcast Corp. - Class A		2.68%
Oracle Corp.		2.47%
Starbucks Corp.		2.47%
Amgen, Inc.		2.46%

Sector Allocations

48

Summit Mutual Funds, Inc. - Pinnacle Series   

NASDAQ-100 INDEX PORTFOLIO   

Objective - Seeks investment results that correspond to the investment performance of U.S. common stocks, as represented by the Nasdaq-100 Index (the “Index”).

Strategy - The Summit Pinnacle Nasdaq-100 Index Portfolio (the “Portfolio”) will attempt to achieve, in both rising and falling markets, a correlation of at least 95% between the total return of its net assets before expenses and the total return of the Index.

Managers’ Comments:

For the year ended December 31, 2006, the Summit Nasdaq-100 Index Portfolio’s total return was 6.67% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 7.28% total return for the Nasdaq-100 Index. The difference of 0.61% is referred to as “tracking error” and is largely attributed to the Portfolio’s operating expenses. These expenses represent the Portfolio’s costs for advisory, administration, accounting, custody and other services. The remaining difference can be caused by a number of factors, including the timing and size of cash flows into and out of the Portfolio; brokers’ commissions or other trading costs; and holding security positions in amounts that are different than the weightings in the Index, among others. While an exact replication of the capitalization weightings of securities in the Index is not feasible, the Portfolio’s objectives and strategies call for a correlation of at least 95% between the Portfolio’s pre-expense total return and that of the Index. The Portfolio achieved this level of correlation for the period presented.

“Nasdaq” and related marks are trademarks or service marks of The Nasdaq Stock Market, Inc. and have been licensed for use for certain purposes by Summit Mutual Funds, Inc. and the Nasdaq-100 Index Portfolio. Nasdaq makes no warranty, express or implied, and bears no liability with respect to Summit Mutual Funds, its use, or any data included therein.

49

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL HIGHLIGHTS	NASDAQ-100 INDEX PORTFOLIO

FINANCIAL HIGHLIGHTS

Computed on the basis of a share of capital stock outstanding throughout the period. Share amounts and net asset values have been adjusted as a result of the 1-for-5 reverse stock split on February 15, 2002.

	Year Ended December 31,
		2006			2005			2004			2003			2002
Net asset value, beginning of period		$	22.97		$	22.81		$	20.72		$	13.94		$	22.30
INVESTMENT ACTIVITIES:
Net investment income / (loss)			0.02			0.02			0.12			(0.04	)		(0.07	)
Net realized and unrealized gains / (losses)			1.51			0.26			1.97			6.82			(8.29	)
Total from Investment Activities			1.53			0.28			2.09			6.78			(8.36	)
DISTRIBUTIONS:
Net investment income			(0.03	)		(0.12	)		—			—			—
Total Distributions			(0.03	)		(0.12	)		—			—			—
Net asset value, end of period		$	24.47		$	22.97		$	22.81		$	20.72		$	13.94
Total return			6.67	%		1.30	%		10.09	%		48.64	%		-37.49	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(1)			0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Ratio of expenses to average net assets - gross			0.76	%		0.76	%		0.79	%		0.91	%		1.11	%
Ratio of net investment income / (loss) to average net assets			0.05	%		0.09	%		0.61	%		-0.31	%		-0.43	%
Portfolio turnover rate			8.23	%		13.86	%		4.19	%		3.97	%		11.79	%
Net assets, end of period (000’s)		$	26,108		$	26,330		$	27,607		$	23,350		$	9,583

⁽¹⁾ Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser

The accompanying notes are an integral part of the financial statements.

50

Summit Mutual Funds, Inc. - Pinnacle Series
NASDAQ-100 INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

December 31, 2006
	SHARES		VALUE
COMMON STOCKS - 99.3%
Consumer Discretionary - 19.3%
Amazon.com, Inc. (a)		4,729	$	186,606
American Eagle Outfitters, Inc. (c)		4,050		126,401
Apollo Group, Inc. (a) (c)		3,003		117,027
Bed Bath & Beyond, Inc. (a)		6,569		250,279
Comcast Corp. - Class A (a)		16,555		700,773
Discovery Holding Co. (a)		4,070		65,486
eBay, Inc. (a)		17,883		537,742
EchoStar Communications Corp. - Class A (a)		3,658		139,114
Expedia, Inc. (a) (c)		5,691		119,397
Garmin Ltd. (c)		3,439		191,415
IAC/InterActiveCorp (a)		5,251		195,127
Lamar Advertising Co. (a) (c)		1,442		94,292
Liberty Global, Inc. (a) (c)		3,565		103,920
Liberty Media Corp. - Interactive (a)		10,474		225,924
NTL, Inc. (c)		6,136		154,873
PetSmart, Inc.		2,383		68,773
Ross Stores, Inc.		2,363		69,236
Sears Holdings Corp. (a) (c)		2,788		468,189
Sirius Satellite Radio, Inc. (a) (c)		25,956		91,884
Staples, Inc.		8,446		225,508
Starbucks Corp. (a)		18,194		644,431
Wynn Resorts Ltd. (c)		1,909		179,160
XM Satellite Radio Holdings, Inc. - Class A (a) (c)		5,346		77,250
				5,032,807
Consumer Staples - 1.3%
Costco Wholesale Corp.		4,179		220,944
Whole Foods Market, Inc. (c)		2,396		112,444
				333,388
Energy - 0.2%
Patterson-UTI Energy, Inc. (c)		2,768		64,301
Health Care - 13.5%
Amgen, Inc. (a)		9,398		641,977
Amylin Pharmaceuticals, Inc. (a) (c)		2,188		78,921
Biogen Idec, Inc. (a)		6,342		311,963
Biomet, Inc.		5,706		235,487
Celgene Corp. (a) (c)		6,470		372,219
Dentsply International, Inc.		2,556		76,297
Express Scripts, Inc. (a)		2,088		149,501
Genzyme Corp. (a)		5,707		351,437
Gilead Sciences, Inc. (a)		7,786		505,545
Intuitive Surgical, Inc. (a) (c)		630		60,417
MedImmune, Inc. (a)		4,434		143,528
Patterson Cos., Inc. (a) (c)		2,325		82,561
Sepracor, Inc. (a) (c)		1,819		112,014
Teva Pharmaceutical Industries Ltd. - ADR		10,488		325,967
Vertex Pharmaceuticals, Inc. (a) (c)		2,255		84,382
				3,532,216

	SHARES		VALUE
Industrials - 4.2%
American Power Conversion Corp.		3,314	$	101,375
C.H. Robinson Worldwide, Inc. (c)		2,899		118,540
Cintas Corp.		3,337		132,512
Expeditors International Washington, Inc.		3,624		146,772
Fastenal Co. (c)		2,497		89,593
Joy Global, Inc.		2,017		97,502
Monster Worldwide, Inc. (a)		2,271		105,920
Paccar, Inc.		4,807		311,974
				1,104,188
Information Technology - 59.0%
Activision, Inc. (a) (c)		4,313		74,356
Adobe Systems, Inc. (a)		9,824		403,963
Akamai Technologies, Inc. (a)		2,600		138,112
Altera Corp. (a)		8,717		171,551
Apple Computer, Inc. (a)		20,537		1,742,359
Applied Materials, Inc.		12,429		229,315
Autodesk, Inc. (a)		4,172		168,799
BEA Systems, Inc. (a)		6,290		79,128
Broadcom Corp. - Class A (a)		7,401		239,126
Cadence Design Systems, Inc. (a) (c)		5,089		91,144
CDW Corp.		1,403		98,659
Check Point Software Technologies Ltd. (a) (c)		4,123		90,376
CheckFree Corp. (a) (c)		1,450		58,232
Cisco Systems, Inc. (a)		37,458		1,023,727
Citrix Systems, Inc. (a)		3,754		101,546
Cognizant Technology Solutions Corp. (a)		2,381		183,718
Comverse Technology, Inc. (a) (c)		3,588		75,743
Dell, Inc. (a)		14,459		362,776
Electronic Arts, Inc. (a)		5,351		269,476
Fiserv, Inc. (a)		3,784		198,357
Flextronics International Ltd. (a) (c)		10,868		124,765
Google, Inc. (a)		2,348		1,081,207
Infosys Technologies Ltd - ADR (c)		1,909		104,155
Intel Corp.		34,753		703,748
Intuit, Inc. (a)		7,582		231,327
Juniper Networks, Inc. (a)		6,435		121,879
Kla-Tencor Corp.		4,136		205,766
Lam Research Corp. (a)		2,514		127,259
Linear Technology Corp.		6,897		209,117
Marvell Technology Group Ltd. (a)		9,612		184,454
Maxim Integrated Products, Inc.		7,777		238,132
Microchip Technology, Inc.		3,093		101,141
Microsoft Corp. (e)		58,475		1,746,063
Network Appliance, Inc. (a)		6,694		262,940
Nvidia Corp. (a)		5,968		220,876
Oracle Corp. (a)		37,640		645,150
Paychex, Inc.		6,247		247,006
Qualcomm, Inc.		34,481		1,303,037
Research In Motion Ltd. (a)		3,178		406,085

The accompanying notes are an integral part of the financial statements.

51

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	NASDAQ-100 INDEX PORTFOLIO

	SHARES		VALUE
Information Technology - 59.0% (Continued)
SanDisk Corp. (a) (c)		3,521	$	151,509
Sun Microsystems, Inc. (a)		26,388		143,023
Symantec Corp. (a)		16,867		351,677
Telefonaktiebolaget LM Ericsson - ADR (c)		1,806		72,655
Tellabs, Inc. (a)		4,462		45,780
VeriSign, Inc. (a)		3,973		95,551
Xilinx, Inc. (c)		7,676		182,766
Yahoo!, Inc. (a)		11,344		289,726
				15,397,257
Materials - 0.3%
Sigma-Aldrich Corp. (c)		1,103		85,725
Telecommunication Services - 1.5%
Level 3 Communications, Inc. (a) (c)		19,844		111,126
Millicom International Cellular SA (a) (c)		1,682		103,679
NII Holdings, Inc. (a)		2,594		167,157
				381,962
TOTAL COMMON STOCKS
(Cost $20,093,471)				25,931,844

	PRINCIPAL
	AMOUNT		VALUE
SHORT TERM INVESTMENTS (e) - 0.3%
U.S. Treasury Bills - 0.3%
4.840%, 03/15/2007	$	80,000	$	79,237
TOTAL SHORT TERM INVESTMENTS
(Cost $79,220)				79,237
Total Investments (Cost $20,172,691) (b) - 99.6%				26,011,081
Northern Institutional Liquid Assets Portfolio (d) - 13.4%				3,503,058
Liabilities in Excess of Other Assets - (13.0)%				(3,405,805	)
TOTAL NET ASSETS - 100.0%			$	26,108,334

ADR	American Depository Receipt
(a)	Non income producing security.
(b)	For federal income tax purposes, cost is $21,282,283 and gross unrealized appreciation and depreciation of securities as of December 31, 2006 was $7,541,113 and ($2,812,315), respectively, with a net appreciation / (depreciation) of $4,728,798.
(c)	All or a portion of the security is out on loan.
(d)	This security was purchased with cash collateral held from securities lending. The market value of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted is $3,860,896, $3,503,058, and $459,897, respectively.
(e)	Securities and other assets with an aggregate value of $177,500 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of December 31, 2006:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
Nasdaq 100 E-Mini (03/07)	5	($2,836)

The accompanying notes are an integral part of the financial statements.

52

Summit Mutual Funds, Inc. - Pinnacle Series
NASDAQ-100 INDEX PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS
Investments in securities, at value	$	26,011,081
Collateral for securities loaned,
at fair value		3,503,058
Receivables:
Securities sold		316,113
Shares sold		2,113
Variation margin		50
Interest and dividends		15,945
Prepaid expenses and other		926
		29,849,286
LIABILITIES
Payables:
Payable upon return of securities loaned		3,503,058
Bank overdraft		175,380
Shares redeemed		21,312
Professional fees		15,412
Fund accounting fees		7,007
Administration fees		6,249
Advisory fees		3,264
Custodian fees		3,082
Directors’ fees		5
Other accrued expenses		6,183
		3,740,952
NET ASSETS*
Paid-in capital		29,949,842
Accumulated undistributed net
investment income / (loss)		15,819
Accumulated net realized gain / (loss)
on investments and futures contracts		(9,692,881	)
Net unrealized appreciation / (depreciation)
on investments and futures contracts		5,835,554
Investments at cost	$	26,108,334
Investments at cost	$	20,172,691
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$26,108,334	1,067,145	$24.47

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2006
	Percentage of ordinary distributions designated as
	qualified dividend income						82.97%
	Dividends received deduction for corporate shareholders						82.49%
	Undistributed ordinary income					$	336,822
	Unrealized appreciation					$	4,728,798
	Post October capital loss carryforward					$	(327,396)
Capital Loss Carryforward Expiring December 31:
	2008	2009	2010	2011	2012	2013	2014
	$(905,274)	$(1,618,824)	$(3,618,754)	$(231,064)	$(139,726)	$(1,358,042)	$(708,047)

STATEMENT OF OPERATIONS
For the year ended December 31, 2006
INVESTMENT INCOME
Interest	$	24,276
Dividends		148,571
Foreign dividend taxes withheld		(497	)
Other income		7,036
		179,386
EXPENSES
Advisory fees		89,243
Administration fees		25,498
Fund accounting fees		24,560
Professional fees		17,949
Transfer agent fees		12,425
Custodian fees		10,680
Royalty fees		4,981
Shareholder reporting fees		3,252
Directors’ fees		3,205
Other expenses		2,486
		194,279
Reimbursements and waivers		(28,542	)
		165,737
NET INVESTMENT INCOME / (LOSS)		13,649
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		(1,026,487	)
Net realized gain / (loss) on futures contracts		10,060
		(1,016,427	)
Net change in unrealized appreciation /
(depreciation) on investments
and futures contracts		2,663,588
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		1,647,161
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	1,660,810

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit	and Waivers
0.35%	0.10%	0.65%	$28,542

The accompanying notes are an integral part of the financial statements.

53

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL STATEMENTS	NASDAQ-100 INDEX PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	13,649		$	24,484
Net realized gain / (loss) on investments and futures		(1,016,427	)		(1,274,075	)
Net change in unrealized appreciation / (depreciation) on investments and futures contracts		2,663,588			1,481,053
		1,660,810			231,462
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(33,790	)		(150,044	)
		(33,790	)		(150,044	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		5,005,689			5,995,790
Reinvestment of distributions		33,790			150,044
Payments for shares redeemed		(6,888,662	)		(7,503,339	)
		(1,849,183	)		(1,357,505	)
NET INCREASE / (DECREASE) IN NET ASSETS		(222,163	)		(1,276,087	)
NET ASSETS
Beginning of period		26,330,497			27,606,584
End of period	$	26,108,334		$	26,330,497
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	15,819		$	24,490

FUND SHARE TRANSACTIONS
Sold	216,002			275,249
Reinvestment of distributions	1,429			7,176
Redeemed	(296,572		)	(346,239		)
Net increase / (decrease) from fund share transactions	(79,141		)	(63,814		)
TOTAL COST OF PURCHASES OF:
Common Stocks	$	2,032,713		$	3,318,253
	$	2,032,713		$	3,318,253
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	2,430,165		$	4,144,265
	$	2,430,165		$	4,144,265
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	33,790		$	150,044
	$	33,790		$	150,044

The accompanying notes are an integral part of the financial statements.

54

Summit Mutual Funds, Inc. - Pinnacle Series   

RUSSELL 2000 SMALL CAP INDEX PORTFOLIO   

Summit Russell 2000 Small Cap Index Portfolio Class I - Average Annual Total Return
1-Year	5-Year	Since Inception
17.60%	10.69%	8.21%
Summit Russell 2000 Small Cap Index Portfolio Class F - Average Annual Total Return
1-Year	5-Year	Since Inception
17.35%	10.47%	7.66%

Past performance is not predictive of future results. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower. Prior to October 4, 2005, Class F share performance is based on Class I Performance, adjusted to reflect Class F expenses.

Portfolio Data
Managers:	Gary R. Rodmaker
	Nick J. Kotsonis
	Kevin P. Aug
Inception Date:	April 27, 2000
Total Net Assets:	$95.97 Million
Number of Equity Holdings:	1974
Median Cap Size:	$657 (in millions)
Average Price-to-book Ratio:	2.41 x
Dividend Yield:	1.12%

Top 10 Equity Holdings
	(% of net assets)
Veritas DGC, Inc.	0.21%
Alexandria Real Estate Equities, Inc.	0.20%
Phillips-Van Heusen	0.19%
Time Warner Telecom, Inc.	0.19%
Polycom, Inc.	0.19%
Realty Income Corp.	0.19%
Varian Semiconductor Equipment
Associates, Inc.	0.18%
Big Lots, Inc.	0.18%
Nationwide Health Properties, Inc.	0.17%
Hologic, Inc.	0.17%

Sector Allocations

55

Summit Mutual Funds, Inc. - Pinnacle Series   

RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

Objective - Seeks investment results that correspond to the investment performance of U.S. common stocks, as represented by the Russell 2000 Index (the “Index”).

Strategy - The Summit Pinnacle Russell 2000 Small Cap Index Portfolio (the “Portfolio”) will attempt to achieve, in both rising and falling markets, a correlation of at least 95% between the total return of its net assets before expenses and the total return of the Index.

Managers’ Comments:

For the year ended December 31, 2006, the Summit Russell 2000 Index Portfolio’s (Class I) total return was 17.60% (before the impact of any product or contract-level fees). This compares to an 18.37% total return for the Russell 2000 Index. The difference of 0.77% is referred to as “tracking error” and is largely attributed to the Portfolio’s operating expenses. These expenses represent the Portfolio’s costs for advisory, administration, accounting, custody and other services. The remaining difference can be caused by a number of factors, including the timing and size of cash flows into and out of the Portfolio; brokers’ commissions or other trading costs; and holding security positions in amounts that are different than the weightings in the Index, among others. While an exact replication of the capitalization weightings of securities in the Index is not feasible, the Portfolio’s objectives and strategies call for a correlation of at least 95% between the Portfolio’s pre-expense total return and that of the Index. The Portfolio achieved this level of correlation for the period presented.

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.

56

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

Computed on the basis of a share of capital stock outstanding throughout the period. Share amounts and net asset values have been adjusted as a result of the 1-for-5 reverse stock split on February 15, 2002.

	Class I
	Year Ended December 31,
		2006			2005			2004			2003			2002
Net asset value, beginning of period		$	65.46		$	63.92		$	54.40		$	37.52		$	48.10
INVESTMENT ACTIVITIES:
Net investment income / (loss)			0.46			0.41			0.31(4	)		0.22			0.29
Net realized and unrealized gains / (losses)			10.88			2.07			9.32			16.95			(10.31	)
Total from Investment Activities			11.34			2.48			9.63			17.17			(10.02	)
DISTRIBUTIONS:
Net investment income			(0.44	)		(0.31	)		(0.11	)		(0.29	)		(0.09	)
Net realized gains			(2.17	)		(0.63	)		—			—			(0.47	)
Total Distributions			(2.61	)		(0.94	)		(0.11	)		(0.29	)		(0.56	)
Net asset value, end of period		$	74.19		$	65.46		$	63.92		$	54.40		$	37.52
Total return			17.60	%		4.01	%		17.72	%		46.19	%		-21.05	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(2)			0.65	%		0.69	%		0.75	%		0.75	%		0.75	%
Ratio of expenses to average net assets - gross			0.65	%		0.69	%		0.76	%		1.12	%		1.33	%
Ratio of net investment income / (loss) to average net assets			0.84	%		0.70	%		0.60	%		0.57	%		0.65	%
Portfolio turnover rate (5)			24.45	%		25.20	%		27.27	%		23.87	%		30.78	%
Net assets, end of period (000’s)		$	95,694		$	75,815		$	68,770		$	25,794		$	13,863

	Class F
					Period from
	Year Ended				October 4, 2005(1)
	December 31,				to December 31,
	2006				2005
Net asset value, beginning of period		$	65.43			$	64.41
INVESTMENT ACTIVITIES:
Net investment income / (loss)			0.31				0.12
Net realized and unrealized gains / (losses)			10.87				0.90
Total from Investment Activities			11.18				1.02
DISTRIBUTIONS:
Net investment income			(0.42	)			—
Net realized gains			(2.17	)			—
Total Distributions			(2.59	)			—
Net asset value, end of period		$	74.02			$	65.43
Total return			17.35	%			1.58	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(2)			0.85	%			0.84%(3	)
Ratio of expenses to average net assets - gross			0.85	%			0.84%(3	)
Ratio of net investment income / (loss) to average net assets			0.64	%			0.74%(3	)
Portfolio turnover rate (5)			24.45	%			25.20	%
Net assets, end of period (000’s)		$	272			$	5

(1)	Commencement of operations.
(2)	Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.
(3)	Annualized.
(4)	Per share amounts are based on average shares outstanding.
(5)	Portfolio Turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.

The accompanying notes are an integral part of the financial statements.

57

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

DECEMBER 31, 2006
	SHARES		VALUE
COMMON STOCKS - 93.6%
Capital Goods - 10.4%
AAR Corp. (a) (c)		2,444	$	71,340
ABX Air, Inc. (a)		3,904		27,055
ACCO Brands Corp. (a)		2,933		77,637
Accuride Corp. (a) (c)		1,474		16,597
Actuant Corp. - Class A		1,738		82,816
Advanced Energy Industries, Inc. (a)		2,295		43,307
Aftermarket Technology Corp. (a)		1,456		30,984
Airtran Holdings, Inc. (a)		6,089		71,485
Alaska Air Group, Inc. (a)		2,572		101,594
American Axle & Manufacturing Holdings, Inc. (c)		3,379		64,167
American Commercial Lines, Inc. (a)		2,003		131,217
American Ecology Corp.		1,015		18,788
American Railcar Industries, Inc. (c)		607		20,662
American Superconductor Corp. (a) (c)		2,201		21,592
Andrew Corp. (a) (c)		10,697		109,430
AO Smith Corp. (c)		1,334		50,105
Applied Industrial Technologies, Inc.		2,914		76,667
Arctic Cat, Inc. (c)		846		14,881
ARGON ST, Inc. (a) (c)		832		17,921
Arkansas Best Corp.		1,643		59,148
Arris Group, Inc. (a) (c)		7,165		89,634
ArvinMeritor, Inc. (c)		4,725		86,137
Astec Industries, Inc. (a)		1,141		40,049
ASV, Inc. (a) (c)		1,361		22,143
Asyst Technologies, Inc. (a) (c)		3,255		23,794
Atlas Air Worldwide Holdings, Inc. (a) (c)		1,300		57,850
ATMI, Inc. (a)		2,508		76,569
Audiovox Corp. (a)		1,065		15,006
Axcelis Technologies, Inc. (a) (c)		6,767		39,452
Badger Meter, Inc. (c)		905		25,069
Baldor Electric Co. (c)		2,071		69,213
Bandag, Inc.		702		35,402
Basin Water, Inc. (a) (c)		390		2,640
BE Aerospace, Inc. (a)		5,199		133,510
Belden CDT, Inc. (c)		2,814		109,999
Blount International, Inc. (a) (c)		2,472		33,273
Briggs & Stratton Corp. (c)		3,353		90,363
Brooks Automation, Inc. (a) (c)		5,001		72,014
Bucyrus International, Inc. - Class A (c)		2,114		109,421
CalAmp Corp. (a) (c)		1,514		12,778
Capella Education Company (a)		254		6,160
Cascade Corp. (c)		762		40,310
Cavco Industries, Inc. (a)		414		14,507
C-COR, Inc. (a)		3,223		35,904
Celadon Group, Inc. (a)		1,495		25,041
Champion Enterprises, Inc. (a) (c)		5,125		47,970
Chart Industries, Inc. (a)		816		13,227
Cognex Corp.		3,036		72,318
Cohu, Inc. (c)		1,514		30,522
Color Kinetics, Inc. (a) (c)		817		17,443
Columbus McKinnon Corp. NY (a)		1,192		25,056
Commercial Vehicle Group, Inc. (a)		1,372		29,910
Cooper Tire & Rubber Co. (c)		4,148		59,316
Credence Systems Corp. (a) (c)		6,720		34,944
CTS Corp. (c)		2,404		37,743
Curtiss-Wright Corp. (c)		2,937		108,904

	SHARES		VALUE
Capital Goods - 10.4% (Continued)
Cymer, Inc. (a)		2,515	$	110,534
Darling International, Inc. (a)		5,417		29,848
Diamond Management & Technology Consultants, Inc.		1,962		24,407
Dionex Corp. (a)		1,265		71,738
DXP Enterprises, Inc. (a) (c)		113		3,960
Dynamex, Inc. (a)		725		16,936
EGL, Inc. (a)		2,101		62,568
Electro Scientific Industries, Inc. (a) (c)		1,853		37,319
Emcore Corp. (a) (c)		2,729		15,091
EnPro Industries, Inc. (a) (c)		1,416		47,025
Entegris, Inc. (a)		9,227		99,836
ESCO Technologies, Inc. (a)		1,654		75,158
Esterline Technologies Corp. (a)		1,626		65,414
ExpressJet Holdings, Inc. (a) (c)		3,313		26,835
Federal Signal Corp.		3,143		50,414
FEI Co. (a)		1,548		40,821
First Solar, Inc. (a) (c)		1,438		42,852
Flanders Corp. (a)		818		8,098
Fleetwood Enterprises, Inc. (a) (c)		4,280		33,855
Florida East Coast Industries (c)		2,293		136,663
Forward Air Corp.		2,093		60,550
Franklin Electric Co., Inc.		1,519		78,061
Freightcar America, Inc. (c)		819		45,414
GateHouse Media, Inc. (a) (c)		1,039		19,284
Gehl Co. (a)		708		19,491
GenCorp, Inc. (a) (c)		3,705		51,944
General Cable Corp. (a) (c)		3,387		148,046
Genesee & Wyoming, Inc. (a) (c)		2,423		63,580
Genlyte Group, Inc. (a)		1,664		129,975
The Gorman-Rupp Co.		768		28,393
Greenbrier Cos., Inc. (c)		881		26,430
Gulfmark Offshore, Inc. (a)		1,067		39,916
Headwaters, Inc. (a) (c)		2,833		67,879
Heartland Express, Inc. (c)		4,056		60,921
Heico Corp. (c)		1,345		52,226
Herman Miller, Inc.		4,450		161,802
Hovnanian Enterprises, Inc. (a) (c)		3,248		110,107
HUB Group, Inc. (a)		2,681		73,862
Innerworkings, Inc. (a) (c)		739		11,794
Interdigital Communications Corp. (a) (c)		3,466		116,284
Intevac, Inc. (a) (c)		1,409		36,564
Itron, Inc. (a) (c)		1,606		83,255
JetBlue Airways Corp. (a) (c)		11,641		165,302
K&F Industries Holdings, Inc. (a)		1,259		28,592
Kadant, Inc. (a) (c)		865		21,089
Kenexa Corp. (a) (c)		1,021		33,958
Keystone Automotive Industries, Inc. (a)		984		33,446
Kimball International, Inc.		1,654		40,192
Knight Transportation, Inc.		3,836		65,404
Knoll, Inc. (c)		2,159		47,498
Kulicke & Soffa Industries, Inc. (a) (c)		3,801		31,928
Ladish Co., Inc. (a) (c)		913		33,854
Lear Corp. (c)		4,514		133,298
Levitt Corp. (c)		1,025		12,546
Lindsay Manufacturing Co.		754		24,618
Littelfuse, Inc. (a)		1,470		46,864
LTX Corp. (a) (c)		4,135		23,156

The accompanying notes are an integral part of the financial statements.

58

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Capital Goods - 10.4% (Continued)
M/I Homes, Inc. (c)		775	$	29,597
Marine Products Corp. (c)		813		9,545
Marten Transport Ltd. (a)		928		17,010
MasTec, Inc. (a) (c)		2,621		30,246
Mattson Technology, Inc. (a)		3,533		32,928
Measurement Specialties, Inc. (a) (c)		925		20,017
Meritage Homes Corp. (a) (c)		1,473		70,292
Mesa Air Group, Inc. (a) (c)		2,422		20,757
Middleby Corp. (a) (c)		434		45,427
Miller Industries Inc./TN (a) (c)		622		14,928
Mine Safety Appliances Co. (c)		2,012		73,740
MKS Instruments, Inc. (a)		2,370		53,515
Modine Manufacturing Co. (c)		2,170		54,315
Monaco Coach Corp. (c)		1,794		25,403
Moog, Inc. (a) (c)		2,464		94,100
MTC Technologies, Inc. (a)		679		15,990
MTS Systems Corp. (c)		1,234		47,657
NACCO Industries, Inc.		285		38,931
Navistar International Corp. (a) (c)		4,165		139,236
Noble International Ltd. (c)		696		13,955
Nordson Corp. (c)		1,917		95,524
Old Dominion Freight Line (a)		1,826		43,952
Orbital Sciences Corp. (a) (c)		4,004		73,834
Orleans Homebuilders, Inc.		227		4,268
OYO Geospace Corp. (a)		256		14,871
Pacer International, Inc.		2,517		74,931
Palm Harbor Homes, Inc. (a) (c)		644		9,029
PAM Transportation Services (a)		343		7,553
Patriot Transportation Holding, Inc. (a) (c)		102		9,523
Paxar Corp. (a) (c)		2,674		61,662
PGT, Inc. (a) (c)		683		8,640
PHI, Inc. (a)		893		29,228
Photon Dynamics, Inc. (a) (c)		1,055		12,333
Photronics, Inc. (a)		2,775		45,343
Pike Electric Corp. (a) (c)		1,050		17,146
Polaris Industries, Inc. (c)		2,695		126,207
Polycom, Inc. (a)		5,900		182,369
Powell Industries, Inc. (a) (c)		516		16,290
Power-One, Inc. (a)		4,848		35,293
Powerwave Technologies, Inc. (a) (c)		7,514		48,465
Presstek, Inc. (a) (c)		1,909		12,141
Quality Distribution, Inc. (a) (c)		555		7,393
Quantum Fuel Systems Technologies Worldwide, Inc. (a) (c)		2,935		4,696
Radyne Comstream Corp. (a) (c)		1,171		12,577
RAE Systems, Inc. (a)		2,510		8,032
RailAmerica, Inc. (a)		2,612		42,001
Raser Technologies, Inc. (a) (c)		1,322		8,091
Raven Industries, Inc. (c)		1,078		28,890
RBC Bearings, Inc. (a)		1,332		38,175
Reddy Ice Holdings, Inc. (c)		1,087		28,066
Regal-Beloit Corp. (c)		2,003		105,178
Republic Airways Holdings, Inc. (a)		2,117		35,523
Robbins & Myers, Inc. (c)		888		40,777
Rofin-Sinar Technologies, Inc. (a)		941		56,893
Rudolph Technologies, Inc. (a) (c)		1,640		26,109
Saia, Inc. (a)		948		22,003
Sauer-Danfoss, Inc. (c)		690		22,252
Semitool, Inc. (a)		1,474		19,619

	SHARES		VALUE
Capital Goods - 10.4% (Continued)
Shutterfly, Inc. (a) (c)		172	$	2,477
Skyline Corp. (c)		376		15,123
Skywest, Inc. (c)		4,269		108,902
Smith & Wesson Holding Corp. (a) (c)		1,900		19,646
Sonic Solutions, Inc. (a) (c)		1,669		27,205
Standex International Corp.		773		23,290
Stanley, Inc. (a) (c)		408		6,899
Superior Industries International (c)		1,542		29,714
Symmetricom, Inc. (a) (c)		2,988		26,653
TAL International Group, Inc. (c)		1,052		28,078
Taleo Corp. (a) (c)		886		12,112
Taser International, Inc. (a) (c)		4,169		31,726
Team, Inc. (a) (c)		414		14,420
Technical Olympic USA, Inc. (c)		1,320		13,424
Technitrol, Inc.		2,721		65,005
Tecumseh Products Co. (a) (c)		1,031		17,424
Teledyne Technologies, Inc. (a) (c)		2,294		92,058
Tennant Co. (c)		1,106		32,074
Tenneco, Inc. (a) (c)		3,033		74,976
Titan International, Inc. (c)		1,112		22,407
TransDigm Group, Inc. (a)		720		19,087
Triumph Group, Inc.		993		52,063
Ultratech, Inc. (a) (c)		1,550		19,344
United Industrial Corp. (c)		574		29,130
Universal Truckload Services, Inc. (a) (c)		310		7,362
US Xpress Enterprises, Inc. (a)		560		9,223
USA Truck, Inc. (a)		581		9,325
Varian Semiconductor Equipment Associates, Inc. (a) (c)		3,835		174,569
Veeco Instruments, Inc. (a) (c)		1,970		36,898
Vicor Corp. (c)		1,330		14,776
Visteon Corp. (a)		8,585		72,801
Wabash National Corp. (c)		2,021		30,517
Waste Services, Inc. (a) (c)		1,807		17,799
Watts Water Technologies, Inc. (c)		1,938		79,671
Werner Enterprises, Inc. (c)		3,443		60,184
Westinghouse Air Brake Technologies Corp.		3,253		98,826
Williams Scotsman International, Inc. (a) (c)		1,938		38,024
Winnebago Industries, Inc.		2,083		68,552
Woodward Governor Co. (c)		2,012		79,897
X-Rite, Inc.		1,915		23,555
Zygo Corp. (a) (c)		1,176		19,345
				9,984,906
Consumer Cyclicals - 18.5%
1-800-FLOWERS.COM, Inc. (a) (c)		1,646		10,139
24/7 Real Media, Inc. (a) (c)		3,156		28,562
99 Cents Only Stores (a) (c)		3,177		38,664
Aaron Rents, Inc.		2,934		84,441
ABM Industries, Inc. (c)		2,849		64,701
AC Moore Arts & Crafts, Inc. (a) (c)		1,045		22,645
Administaff, Inc. (c)		1,487		63,599
The Advisory Board Co. (a)		1,200		64,248
ADVO, Inc. (c)		2,128		69,373
Aeropostale, Inc. (a) (c)		3,595		110,978
AFC Enterprises (a)		1,673		29,562
Ambassadors Group, Inc.		1,345		40,821
Ambassadors International, Inc. (c)		465		21,213
Amerco, Inc. (a)		667		58,036
American Greetings Corp. (c)		3,577		85,383

The accompanying notes are an integral part of the financial statements.

59

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

	SHARES		VALUE
Consumer Cyclicals - 18.5% (Continued)
American Woodmark Corp. (c)		707	$	29,588
America’s Car Mart, Inc. (a) (c)		619		7,341
Ameristar Casinos, Inc.		1,728		53,119
AMN Healthcare Services, Inc. (a) (c)		2,116		58,275
Applebees International, Inc. (c)		4,977		122,783
aQuantive, Inc. (a) (c)		5,102		125,815
Arbitron, Inc.		2,035		88,400
Asbury Automotive Group, Inc.		807		19,013
Aztar Corp. (a)		2,423		131,860
Bally Technologies, Inc. (a) (c)		3,494		65,268
Bally Total Fitness Holding Corp. (a) (c)		2,399		5,878
Banta Corp.		1,609		58,568
Barrett Business Services		454		10,633
Bebe Stores, Inc. (c)		1,539		30,457
Belo Corp. (c)		6,090		111,873
Big 5 Sporting Goods Corp.		1,524		37,216
Big Lots, Inc. (a) (c)		7,567		173,436
BJ’s Restaurants, Inc. (a) (c)		893		18,048
Blockbuster, Inc. (a)		12,810		67,765
Blue Nile, Inc. (a) (c)		924		34,086
Blyth, Inc. (c)		1,727		35,835
Bob Evans Farms, Inc.		2,403		82,231
The Bon-Ton Stores Inc. (c)		360		12,474
Books-A-Million, Inc. (c)		923		20,934
Borders Group, Inc. (c)		4,340		96,999
Bowne & Co, Inc.		2,057		32,789
Bright Horizons Family Solutions, Inc. (a)		1,756		67,887
Brightpoint, Inc. (a) (c)		3,371		45,340
Brown Shoe Co, Inc.		1,899		90,658
The Buckle Inc. (c)		629		31,985
Buffalo Wild Wings, Inc. (a) (c)		492		26,174
Build-A-Bear-Workshop, Inc. (a) (c)		959		26,871
Cabela’s, Inc. (a) (c)		2,149		51,855
Cache, Inc. (a)		769		19,410
California Pizza Kitchen, Inc. (a) (c)		1,329		44,269
Callaway Golf Co.		5,075		73,131
Carmike Cinemas, Inc. (c)		768		15,660
Carter’s, Inc. (a)		3,261		83,155
Casella Waste Systems, Inc. (a)		1,471		17,990
Casual Male Retail Group, Inc. (a) (c)		2,061		26,896
Catalina Marketing Corp.		3,007		82,692
The Cato Corp.		1,987		45,522
CBRL Group, Inc. (c)		2,014		90,147
CDI Corp. (c)		780		19,422
CEC Entertainment, Inc. (a)		2,191		88,188
Central European Distribution Corp. (a) (c)		2,069		61,449
Central Garden and Pet Co. (a) (c)		1,394		67,497
Central Parking Corp. (c)		652		11,736
Century Casinos, Inc. (a) (c)		1,323		14,765
Cenveo, Inc. (a) (c)		3,568		75,642
Charlotte Russe Holding, Inc. (a)		932		28,659
Charming Shoppes, Inc. (a)		8,206		111,027
Charter Communications, Inc. (a) (c)		25,923		79,324
Chemed Corp. (c)		1,755		64,900
Cherokee, Inc.		520		22,313
The Children’s Place Retail Stores, Inc. (a)		1,472		93,501
Chipolte Mexican Grill, Inc. (a)		1,606		83,512
Christopher & Banks Corp. (c)		2,447		45,661

	SHARES		VALUE
Consumer Cyclicals - 18.5% (Continued)
Churchill Downs, Inc.		585	$	25,003
Citadel Broadcasting Corp. (c)		2,641		26,304
Citi Trends, Inc. (a) (c)		411		16,292
CKE Restaurants, Inc. (c)		4,441		81,714
CKX, Inc. (a) (c)		3,327		39,026
Clark, Inc.		1,174		19,524
CMGI, Inc. (a)		31,490		42,197
CNET Networks, Inc. (a)		10,045		91,309
Cogent Inc. (a) (c)		2,817		31,015
Coinmach Service Corp.		1,765		21,003
Coinstar, Inc. (a)		1,870		57,166
Columbia Sportswear Co. (c)		857		47,735
Conn’s, Inc. (a) (c)		508		11,821
Consolidated Graphics, Inc. (a)		704		41,585
Core-Mark Holding Co., Inc. (a) (c)		646		21,609
Corinthian Colleges, Inc. (a)		5,777		78,740
Cornell Cos., Inc. (a) (c)		744		13,638
Cosi, Inc. (a) (c)		2,238		11,391
Cost Plus, Inc. (a) (c)		1,427		14,698
CoStar Group, Inc. (a)		1,125		60,255
Courier Corp.		671		26,149
Covad Communications Group, Inc. (a) (c)		19,762		27,272
Cox Radio, Inc. (a) (c)		2,942		47,955
CRA International, Inc. (a)		670		35,108
CROCS, Inc. (a) (c)		567		24,494
Cross Country Healthcare, Inc. (a)		2,089		45,582
Crown Media Holdings, Inc. (a) (c)		1,039		3,772
CSK Auto Corp. (a) (c)		2,922		50,112
CSS Industries, Inc.		453		16,023
Cumulus Media, Inc. (a) (c)		2,501		25,985
DEB Shops, Inc.		242		6,389
Deckers Outdoor Corp. (a) (c)		732		43,883
dELiA*s Inc. (a)		1,431		15,011
Denny’s Corp. (a) (c)		6,165		29,037
DeVry, Inc.		4,088		114,464
Digital Theater Systems, Inc. (DTS) (a)		1,079		26,101
Directed Electronics, Inc. (a)		627		7,179
Dollar Thrifty Automotive Group (a) (c)		1,629		74,299
Dominos Pizza, Inc.		2,468		69,104
Dover Downs Gaming & Entertainment, Inc.		975		13,036
Dover Motorsports, Inc. (c)		1,102		5,852
Dress Barn, Inc. (a) (c)		2,996		69,897
Drugstore.Com (a) (c)		5,382		19,698
DSW, Inc. - Class A (a) (c)		1,055		40,691
Dyncorp International, Inc. (a)		1,630		25,868
Earthlink, Inc. (a)		8,938		63,460
Educate, Inc. (a) (c)		1,141		8,124
Elizabeth Arden, Inc. (a)		1,652		31,471
Emmis Communications Corp. (c)		2,203		18,153
Entercom Communications Corp. (c)		2,169		61,122
Entravision Communications Corp. (a)		4,612		37,911
Ethan Allen Interiors, Inc.		2,215		79,984
Exponent, Inc. (a) (c)		1,078		20,115
Ezcorp, Inc. (a)		2,310		37,537
Finish Line (c)		2,855		40,769
First Advantage Corp. (a) (c)		479		10,998
First Consulting Group, Inc. (a)		1,404		19,319
Fisher Communications, Inc. (a)		510		22,547

The accompanying notes are an integral part of the financial statements.

60

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Consumer Cyclicals - 18.5% (Continued)
Forrester Research, Inc. (a)		929	$	25,185
Fossil, Inc. (a)		3,023		68,259
Fred’s, Inc. (c)		2,674		32,195
FTD Group, Inc. (a)		861		15,403
FTI Consulting, Inc. (a) (c)		2,679		74,717
Fuel Systems Solutions, Inc. (a) (c)		728		16,074
Furniture Brands International, Inc. (c)		2,950		47,878
G&K Services, Inc.		1,385		53,863
Gaiam, Inc. - Class A (a) (c)		1,055		14,432
Gaylord Entertainment Co. (a)		2,722		138,631
Gemstar-TV Guide International, Inc. (a) (c)		16,672		66,855
Genesco, Inc. (a)		1,561		58,225
GenTek, Inc. (a) (c)		666		23,037
The Geo Group Inc. (a)		1,267		47,538
Gevity HR, Inc. (c)		1,666		39,468
Global Cash Access, Inc. (a) (c)		2,168		35,187
Global Imaging Systems, Inc. (a) (c)		3,476		76,298
Gray Television, Inc.		2,814		20,627
Great Wolf Resorts, Inc. (a)		1,799		25,114
Group 1 Automotive, Inc. (c)		1,618		83,683
GSI Commerce, Inc. (a) (c)		2,550		47,812
Guess ?, Inc. (a)		1,364		86,519
Guitar Center, Inc. (a) (c)		1,960		89,102
Gymboree Corp. (a) (c)		2,144		81,815
Harris Interactive, Inc. (a)		3,635		18,320
Hartmarx Corp. (a) (c)		2,124		14,995
Haverty Furniture Cos., Inc. (c)		1,510		22,348
Heidrick & Struggles International, Inc. (a)		1,216		51,510
Hibbett Sporting Goods, Inc. (a) (c)		2,079		63,472
Home Solutions of America, Inc. (a) (c)		2,999		17,574
Hooker Furniture Corp. (c)		654		10,255
HOT Topic, Inc. (a)		2,959		39,473
Hudson Highland Group, Inc. (a) (c)		1,556		25,954
Iconix Brand Group, Inc. (a)		3,134		60,768
ICT Group, Inc. (a)		441		13,931
Ihop Corp.		1,218		64,189
IHS Inc. (a) (c)		1,521		60,049
IKON Office Solutions, Inc. (c)		7,363		120,532
Infospace, Inc. (a) (c)		2,091		42,886
infoUSA, Inc.		2,239		26,666
Insight Enterprises, Inc. (a)		3,147		59,384
Inter Parfums, Inc. (c)		244		4,682
iPass, Inc. (a) (c)		4,360		25,637
iRobot Corp. (a) (c)		744		13,437
Isle of Capri Casinos, Inc. (a) (c)		1,050		27,909
J Crew Group, Inc. (a) (c)		1,463		56,399
Jack in the Box, Inc. (a)		2,371		144,726
Jackson Hewitt Tax Service, Inc.		2,266		76,976
Jakks Pacific, Inc. (a) (c)		1,849		40,382
Jo-Ann Stores, Inc. (a) (c)		1,613		39,680
JOS A Bank Clothiers, Inc. (a) (c)		1,166		34,222
Journal Communications, Inc.		2,850		35,938
Journal Register Co. (c)		2,605		19,016
K2, Inc. (a) (c)		3,081		40,638
Kellwood Co. (c)		1,671		54,341
Kelly Services, Inc.		1,357		39,272
Kenneth Cole Productions, Inc.		615		14,754
Kforce, Inc. (a) (c)		2,085		25,374

	SHARES		VALUE
Consumer Cyclicals - 18.5% (Continued)
The Knot, Inc. (a) (c)		1,186	$	31,121
Korn/Ferry International (a) (c)		2,760		63,370
Krispy Kreme Doughnuts, Inc. (a) (c)		3,593		39,882
K-Swiss, Inc. (c)		1,735		53,334
Labor Ready, Inc. (a)		3,656		67,014
Lakes Entertainment, Inc. (a) (c)		1,490		16,077
Landry’s Restaurants, Inc. (c)		1,023		30,782
Lawson Products (c)		256		11,748
La-Z-Boy, Inc. (c)		3,384		40,168
Leapfrog Enterprises, Inc. (a) (c)		2,280		21,614
LECG Corp. (a)		1,587		29,328
Lee Enterprises, Inc.		2,980		92,559
Life Time Fitness, Inc. (a)		1,979		96,001
Lifetime Brands, Inc. (c)		756		12,421
Lightbridge, Inc. (a)		1,772		23,993
Lin TV Corp. (a) (c)		1,759		17,502
Lincoln Educational Services Corp. (a) (c)		232		3,130
Liquidity Services, Inc. (a)		463		7,968
Lithia Motors, Inc. (c)		962		27,667
Live Nation, Inc. (a)		4,275		95,760
LKQ Corp. (a)		2,912		66,947
Lodgenet Entertainment Corp. (a)		1,013		25,355
Lodgian, Inc. (a) (c)		1,597		21,719
LoJack Corp. (a) (c)		1,262		21,555
Luby’s, Inc. (a) (c)		1,684		18,339
Magna Entmt Corp. (a) (c)		2,684		12,105
Maidenform Brands, Inc. (a)		976		17,685
Mannatech, Inc. (c)		1,100		16,203
Marchex, Inc. (a) (c)		1,548		20,712
Marcus Corp.		1,441		36,861
MarineMax, Inc. (a) (c)		1,106		28,679
Martha Stewart Living Omnimedia (c)		1,694		37,099
Marvel Entertainment, Inc. (a) (c)		3,068		82,560
Matthews International Corp. (c)		2,070		81,454
MAXIMUS, Inc. (c)		1,438		44,262
McCormick & Schmick’s Seafood Restaurants, Inc. (a)		775		18,631
Media General, Inc. (c)		1,480		55,012
Men’s Wearhouse, Inc.		3,102		118,683
Midas, Inc. (a) (c)		997		22,931
Midway Games, Inc. (a) (c)		2,327		16,242
Monarch Casino & Resort, Inc. (a) (c)		697		16,644
Monro Muffler, Inc.		792		27,799
Morgans Hotel Group Co. (a) (c)		1,122		18,995
Morton’s Restaurant Group, Inc. (a)		673		11,205
Movado Group, Inc. (c)		1,144		33,176
MPS Group, Inc. (a)		6,918		98,097
MTR Gaming Group, Inc. (a)		1,526		18,648
Multimedia Games, Inc. (a) (c)		1,776		17,050
National Presto Industries, Inc. (c)		265		15,866
Nautilus Group, Inc.		2,158		30,212
Navigant Consulting, Inc. (a) (c)		2,769		54,715
Net 1 UEPS Technologies, Inc. (a) (c)		3,127		92,434
NetFlix, Inc. (a) (c)		3,019		78,071
Netratings, Inc. (a)		888		15,549
New York & Company, Inc. (a) (c)		1,393		18,220
NIC, Inc. (a)		2,569		12,768
Nu Skin Enterprises, Inc. (c)		3,859		70,350
Oakley, Inc.		1,580		31,695

The accompanying notes are an integral part of the financial statements.

61

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

	SHARES		VALUE
Consumer Cyclicals - 18.5% (Continued)
O’Charleys, Inc. (a) (c)		1,549	$	32,963
On Assignment, Inc. (a)		1,700		19,975
Outdoor Channel Holdings, Inc. (a) (c)		856		10,982
Overstock.com, Inc. (a) (c)		744		11,755
Oxford Industries, Inc.		1,016		50,444
Pacific Sunwear Of California (a) (c)		4,891		95,766
The Pantry Inc. (a)		1,477		69,183
Papa John’s International, Inc. (a) (c)		1,586		46,010
Parkervision, Inc. (a) (c)		1,226		13,670
Parlux Fragrances, Inc. (a) (c)		803		4,473
Payless Shoesource, Inc. (a) (c)		4,467		146,607
PeopleSupport, Inc. (a)		1,205		25,365
PEP Boys-Manny, Moe & Jack (c)		3,590		53,347
Perficient, Inc. (a) (c)		1,145		18,789
Perry Ellis International, Inc. (a)		533		21,853
PetMed Express, Inc. (a) (c)		1,222		16,314
PF Chang’s China Bistro, Inc. (a) (c)		1,694		65,016
PHH Corp. (a) (c)		3,571		103,095
Phillips-Van Heusen (c)		3,699		185,579
Pier 1 Imports, Inc. (c)		5,844		34,772
Pinnacle Entertainment, Inc. (a)		3,214		106,512
Playboy Enterprises, Inc. (a) (c)		1,429		16,376
Playtex Products, Inc. (a) (c)		3,745		53,891
Pre-Paid Legal Services, Inc. (c)		656		25,669
Prestige Brands Holdings, Inc. (a) (c)		2,232		29,061
Priceline.com, Inc. (a) (c)		1,633		71,215
Pricesmart, Inc. (a) (c)		518		9,277
Primedia, Inc. (a) (c)		13,378		22,609
Private Media Group, Inc. (a) (c)		1,641		6,613
Progressive Gaming International Corp. (a) (c)		2,358		21,387
ProQuest Co. (a)		1,664		17,389
Providence Service Corp. (a)		744		18,697
Quiksilver, Inc. (a) (c)		8,184		128,898
Radio One, Inc. (a) (c)		5,032		33,916
Rare Hospitality International, Inc. (a)		2,273		74,850
RC2 Corp. (a)		1,357		59,708
The Reader’s Digest Association, Inc.		6,457		107,832
Red Robin Gourmet Burgers, Inc. (a) (c)		1,077		38,610
Regis Corp. (c)		3,060		120,992
Renaissance Learning, Inc. (c)		526		9,326
Rent-A-Center, Inc. (a)		4,652		137,281
Resources Connection, Inc. (a)		3,228		102,780
Restoration Hardware, Inc. (a) (c)		1,953		16,620
Retail Ventures, Inc. (a) (c)		1,270		24,181
Revlon, Inc. (a)		10,578		13,540
Riviera Holdings Corp. (a) (c)		735		17,758
Rollins, Inc. (c)		1,982		43,822
Ruby Tuesday, Inc. (c)		3,877		106,385
Rush Enterprises, Inc. - Class A (a)		1,464		24,771
Russ Berrie & Co, Inc. (a) (c)		734		11,340
Ruth’s Chris Steak House, Inc. (a) (c)		1,136		20,766
SAIC, Inc. (a) (c)		5,638		100,300
Salem Communications Corp.		741		8,855
Schawk, Inc. (c)		1,033		20,185
Scholastic Corp. (a) (c)		2,351		84,260
School Specialty, Inc. (a)		1,477		55,373
Sealy Corp. (c)		1,315		19,396
Select Comfort Corp. (a) (c)		3,607		62,726

	SHARES		VALUE
Consumer Cyclicals - 18.5% (Continued)
Shoe Carnival, Inc. (a) (c)		562	$	17,759
Shuffle Master, Inc. (a) (c)		2,330		61,046
Sinclair Broadcast Group, Inc. (c)		3,050		32,025
Sirva, Inc. (a) (c)		3,335		11,606
Sitel Corp. (a)		3,921		16,547
Six Flags, Inc. (a) (c)		4,774		25,016
Skechers U.S.A., Inc. (a)		700		23,317
Sohu.com, Inc. (a)		1,731		41,544
Sonic Automotive, Inc. (c)		2,023		58,748
Sonic Corp. (a) (c)		4,583		109,763
Source Interlink Companies, Inc. (a) (c)		2,277		18,580
Spanish Broadcasting System (a) (c)		3,000		12,330
Spectrum Brands, Inc. (a) (c)		2,405		26,214
Speedway Motorsports, Inc. (c)		959		36,826
Spherion Corp. (a) (c)		3,853		28,628
Stage Stores, Inc. (c)		1,785		54,246
Stamps.com, Inc. (a) (c)		1,215		19,136
Standard Parking Corp. (a) (c)		332		12,752
Stanley Furniture Co, Inc. (c)		724		15,530
Startek, Inc. (c)		701		9,492
The Steak n Shake Co. (a) (c)		1,804		31,750
Stein Mart, Inc.		1,672		22,171
Steinway Musical Instruments (a) (c)		492		15,277
Steven Madden Ltd.		1,395		48,951
Stewart Enterprises, Inc.		7,054		44,087
Strayer Education, Inc.		914		96,930
Stride Rite Corp.		2,462		37,127
Sun-times Media Group, Inc. (c)		4,879		23,956
Syms Corp. (a) (c)		360		7,168
Synagro Technologies, Inc. (c)		4,125		18,232
Systemax, Inc. (a) (c)		647		11,290
Take-Two Interactive Software, Inc. (a) (c)		4,793		85,124
The Talbots, Inc. (c)		1,485		35,788
Tarragon Corp. (c)		908		11,050
TeleTech Holdings, Inc. (a)		2,146		51,246
Tempur-Pedic International, Inc. (a) (c)		3,365		68,848
Tetra Tech, Inc. (a) (c)		3,845		69,556
Texas Roadhouse, Inc. (a) (c)		3,396		45,031
THQ, Inc. (a) (c)		4,277		139,088
Timberland Co. (a)		3,259		102,919
Tivo, Inc. (a) (c)		5,137		26,301
The Topps Co Inc. (c)		2,314		20,595
Town Sports Internationall Holdings, Inc. (a) (c)		588		9,690
Travelzoo, Inc. (a)		191		5,720
Triarc Companies		4,124		82,480
True Religion Apparel, Inc. (a) (c)		858		13,136
Trump Entertainment Resorts, Inc. (a) (c)		2,074		37,830
Tuesday Morning Corp. (c)		2,009		31,240
Tupperware Corp. (c)		4,068		91,977
Tween Brands, Inc. (a)		2,251		89,882
Under Armour, Inc. (a) (c)		1,354		68,309
Unifirst Corp. (c)		646		24,813
United Natural Foods, Inc. (a) (c)		2,827		101,546
United Online, Inc. (c)		4,304		57,157
United Stationers, Inc. (a)		2,074		96,835
Universal Electronics, Inc. (a)		847		17,804
Universal Technical Institute, Inc. (a) (c)		1,540		34,203
USANA Health Sciences, Inc. (a) (c)		569		29,395

The accompanying notes are an integral part of the financial statements.

62

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Consumer Cyclicals - 18.5% (Continued)
Vail Resorts, Inc. (a) (c)		2,049	$	91,836
Valassis Communications, Inc. (a) (c)		3,241		46,994
Valueclick, Inc. (a) (c)		6,676		157,754
Valuevision Media, Inc. (a)		2,043		26,845
Vertrue, Inc. (a)		427		16,401
Viad Corp.		1,390		56,434
Volcom, Inc. (a)		854		25,253
Volt Information Sciences, Inc. (a) (c)		556		27,917
W Holding Co, Inc. (c)		7,310		43,568
Warnaco Group, Inc. (a)		3,155		80,074
Waste Connections, Inc. (a) (c)		3,033		126,021
Waste Industries USA, Inc.		500		15,260
Watson Wyatt & Co. Holdings (c)		2,833		127,910
WebSideStory, Inc. (a) (c)		1,139		14,420
West Marine, Inc. (a) (c)		960		16,579
Westwood One, Inc. (c)		4,703		33,203
Wet Seal, Inc. (a)		4,633		30,902
Weyco Group, Inc.		465		11,555
Wireless Facilities, Inc. (a) (c)		3,827		10,907
WMS Industries, Inc. (a) (c)		1,759		61,319
Wolverine World Wide, Inc. (c)		3,736		106,551
World Fuel Services Corp. (c)		1,753		77,938
World Wrestling Entertainment, Inc. (c)		1,438		23,439
Yankee Candle, Inc.		2,732		93,653
Zale Corp. (a)		3,208		90,498
Zumiez, Inc. (a) (c)		939		27,738
				17,722,057
Consumer Staples - 2.0%
Alliance One International, Inc. (a)		6,412		45,269
Arden Group, Inc.		73		9,038
Boston Beer Co, Inc. (a) (c)		541		19,465
Builders FirstSource, Inc. (a)		1,009		17,990
Casey’s General Stores, Inc. (c)		3,378		79,552
Chiquita Brands International, Inc. (c)		2,824		45,099
Coca-Cola Bottling Co. Consolidated		257		17,587
Diamond Foods, Inc.		1,020		19,390
Farmer Bros Co. (c)		371		7,921
Flowers Foods, Inc.		3,470		93,655
Frontier Airlines Holdings, Inc. (a) (c)		2,428		17,967
Great Atlantic & Pacific Tea Co. (c)		1,290		33,205
Green Mountain Coffee Roasters, Inc. (a) (c)		250		12,308
Hain Celestial Group, Inc. (a) (c)		2,081		64,948
Horizon Lines Inc. - Class A (c)		899		24,237
Imperial Sugar Co.		736		17,819
Ingles Markets, Inc.		700		20,853
J&J Snack Foods Corp.		921		38,129
Jones Soda Co. (a) (c)		1,699		20,898
Lance, Inc. (c)		1,935		38,855
Longs Drug Stores Corp.		2,132		90,354
M&F Worldwide Corp. (a)		708		17,884
Maui Land & Pineapple Co, Inc. (a)		188		6,377
Medifast, Inc. (a) (c)		756		9,510
Nash Finch Co. (c)		799		21,813
National Beverage Corp. (c)		549		7,702
NBTY, Inc. (a) (c)		3,614		150,234
Pathmark Stores, Inc. (a)		3,494		38,958
Peet’s Coffee & Tea, Inc. (a) (c)		852		22,357
Performance Food Group Co. (a) (c)		2,260		62,466

	SHARES		VALUE
Consumer Staples - 2.0% (Continued)
Physicians Formula Holdings, Inc. (a)		494	$	9,233
Pilgrim’s Pride Corp. (c)		2,636		77,577
Premium Standard Farms, Inc.		900		16,713
Ralcorp Holdings, Inc. (a) (c)		1,785		90,839
Ruddick Corp.		2,592		71,928
Sanderson Farms, Inc.		1,116		33,804
Schweitzer-Mauduit International, Inc. (c)		947		24,669
Seaboard Corp.		18		31,770
Sensient Technologies Corp.		3,065		75,399
Smart & Final, Inc. (a)		830		15,687
Spartan Stores, Inc.		1,412		29,553
Susser Holdings Corp. (a) (c)		498		8,964
Tiens Biotech Group USA, Inc. (a) (c)		230		904
Tootsie Roll Industries, Inc. (c)		2,316		75,733
TreeHouse Foods, Inc. (a)		2,025		63,180
Universal Corp. (c)		1,662		81,455
Vector Group Ltd. (c)		2,642		46,896
Village Super Market, Inc. - Class A		107		9,147
Weis Markets, Inc. (c)		621		24,908
Wild Oats Markets, Inc. (a) (c)		1,852		26,632
				1,886,831
Energy - 4.5%
Allis-Chalmers Energy, Inc. (a) (c)		1,269		29,238
Alon USA Energy, Inc. (c)		803		21,127
Alpha Natural Resources, Inc. (a)		3,368		47,927
Arena Resources, Inc. (a) (c)		701		29,940
Atlas America, Inc. (a) (c)		1,128		57,494
ATP Oil & Gas Corp. (a) (c)		1,314		51,995
Atwood Oceanics, Inc. (a) (c)		1,809		88,587
Aurora Oil & Gas Corp. (a) (c)		4,471		14,352
Aventine Renewable Energy Holdings, Inc. (a)		2,019		47,568
Basic Energy Services, Inc. (a) (c)		840		20,706
Berry Petroleum Co. - Class A (c)		2,364		73,308
Bill Barrett Corp. (a) (c)		1,854		50,447
Bois D’Arc Energy, Inc. (a) (c)		1,130		16,532
Brigham Exploration Co. (a)		2,962		21,652
Bristow Group, Inc. (a) (c)		1,510		54,496
Bronco Drilling Company, Inc. (a)		885		15,213
Callon Petroleum Co. (a)		1,323		19,885
Capstone Turbine Corp. (a) (c)		6,884		8,467
CARBO Ceramics, Inc. (c)		1,346		50,300
Carrizo Oil & Gas, Inc. (a) (c)		1,488		43,182
Clayton Williams Energy, Inc. (a) (c)		311		11,292
Complete Production Services, Inc. (a)		1,696		35,955
Comstock Resources, Inc. (a) (c)		2,784		86,471
Crosstex Energy, Inc. (c)		2,124		67,310
Dawson Geophysical Co. (a) (c)		490		17,851
Delek US Holdings, Inc. (c)		670		10,981
Delta Petroleum Corp. (a) (c)		3,446		79,809
Dril-Quip, Inc. (a) (c)		1,442		56,469
Edge Petroleum Corp. (a) (c)		1,069		19,499
Encore Acquisition Co. (a)		3,487		85,536
Energy Partners Ltd. (a) (c)		2,497		60,977
Evergreen Energy, Inc. (a) (c)		4,755		47,027
Evergreen Solar, Inc. (a) (c)		4,487		33,967
EXCO Resources, Inc. (a) (c)		3,489		58,999
Exploration Co. (a)		1,900		25,346
FuelCell Energy, Inc. (a) (c)		3,563		23,017

The accompanying notes are an integral part of the financial statements.

63

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

	SHARES		VALUE
Energy - 4.5% (Continued)
Gasco Energy, Inc. (a) (c)		4,924	$	12,064
GeoGlobal Resources, Inc. (a) (c)		1,952		15,323
GeoMet, Inc. (a) (c)		692		7,197
Giant Industries, Inc. (a) (c)		981		73,526
GMX Resources, Inc. (a) (c)		523		18,566
Goodrich Petroleum Corp. (a) (c)		814		29,450
Grey Wolf, Inc. (a) (c)		13,050		89,523
Gulf Island Fabrication, Inc. (c)		808		29,815
Gulfport Energy Corp. (a) (c)		838		11,388
Hanover Compressor Co. (a) (c)		6,859		129,566
Harvest Natural Resources, Inc. (a) (c)		2,489		26,458
Hercules Offshore, Inc. (a)		1,320		38,148
Hornbeck Offshore Services, Inc. (a)		1,599		57,084
The Houston Exploration Co. (a)		1,857		96,155
Hydril (a) (c)		1,185		89,100
Input/Output, Inc. (a) (c)		4,727		64,429
International Coal Group, Inc. (a) (c)		7,629		41,578
James River Coal Co. (a) (c)		1,085		10,069
Lufkin Industries, Inc. (c)		993		57,673
Mariner Energy, Inc. (a) (c)		4,909		96,216
Markwest Hydrocarbon, Inc.		341		16,556
Matrix Service Co. (a) (c)		1,358		21,864
McMoRan Exploration Co. (a) (c)		1,635		23,250
Meridian Resource Corp. (a)		5,843		18,055
Metretek Technologies, Inc. (a) (c)		1,022		12,591
NATCO Group, Inc. (a)		952		30,350
Newpark Resources (a) (c)		5,989		43,181
Oil States International, Inc. (a) (c)		3,226		103,974
Pacific Ethanol, Inc. (a) (c)		1,701		26,178
Parallel Petroleum Corp. (a) (c)		2,516		44,206
Parker Drilling Co. (a)		7,257		59,290
Penn Virginia Corp. (c)		1,154		80,826
Petrohawk Energy Corp. (a)		9,531		109,606
Petroleum Development Corp. (a)		1,034		44,514
Petroquest Energy, Inc. (a)		2,751		35,048
Pioneer Drilling Co. (a)		2,694		35,776
Plug Power, Inc. (a) (c)		4,858		18,898
PrimeEnergy Corp. (a)		48		3,096
Quest Resource Corp. (a)		1,274		12,867
RAM Energy Resources, Inc. (a) (c)		1,358		7,483
Rentech, Inc. (a) (c)		9,260		34,910
Resource America, Inc. (c)		992		26,189
Rosetta Resources, Inc. (a)		3,392		63,329
RPC, Inc. (c)		2,150		36,284
Stone Energy Corp. (a)		1,776		62,782
Sulphco, Inc. (a) (c)		2,266		10,695
Superior Well Services, Inc. (a) (c)		711		18,173
Swift Energy Co. (a)		1,954		87,559
Syntroleum Corp. (a) (c)		2,649		9,165
T-3 Energy Services, Inc. (a) (c)		93		2,051
Toreador Resources Corp. (a) (c)		926		23,863
Transmeridian Exploration, Inc. (a) (c)		4,697		16,205
Trico Marine Service, Inc. (a) (c)		772		29,575
Union Drilling, Inc. (a) (c)		874		12,306
Universal Compression Holdings, Inc. (a) (c)		1,964		121,984
Vaalco Energy, Inc. (a) (c)		3,860		26,055
Venoco, Inc. (a) (c)		827		14,522
VeraSun Energy Corp. (a) (c)		1,223		24,154

	SHARES		VALUE
Energy - 4.5% (Continued)
Veritas DGC, Inc. (a) (c)		2,384	$	204,142
Warren Resources, Inc. (a) (c)		3,576		41,911
Western Refining, Inc. (c)		1,556		39,616
Westmoreland Coal Co. (a) (c)		438		8,615
W-H Energy Services, Inc. (a) (c)		1,902		92,608
Whiting Petroleum Corp. (a) (c)		2,480		115,568
				4,346,120
Financial - 22.0%
1st Source Corp. (c)		811		26,057
21st Century Insurance Group (c)		2,093		36,941
Abington Community Bancorp, Inc. (c)		454		8,708
ACA Capital Holdings, Inc. (a)		453		7,003
Acadia Realty Trust (c)		2,069		51,766
Accredited Home Lenders Holding Co. (a)		1,381		37,674
Advance America Cash Advance Centers, Inc.		4,528		66,335
Advanta Corp. - Class B (c)		1,296		56,544
Advent Software, Inc. (a)		1,298		45,806
Affirmative Insurance Holdings, Inc. (c)		540		8,786
Affordable Residential Communities (a) (c)		2,225		25,921
Agree Realty Corp.		430		14,779
Alabama National Bancorporation		968		66,531
Alexander’s, Inc. (a) (c)		110		46,162
Alexandria Real Estate Equities, Inc. (c)		1,925		193,270
Alfa Corp. (c)		2,107		39,633
Amcore Financial, Inc. (c)		1,462		47,764
American Campus Communities, Inc. (c)		1,514		43,104
American Equity Investment Life Holding Co. (c)		3,728		48,576
American Financial Realty Trust (c)		8,688		99,391
American Home Mortgage Investment Corp. (c)		2,956		103,815
American Physicians Capital, Inc. (a) (c)		621		24,865
AmericanWest Bancorp (c)		701		16,978
Ameris Bancorp		812		22,882
Amtrust Financial Services, Inc. (a) (c)		1,684		14,398
Anchor Bancorp Wisconsin, Inc.		1,473		42,452
Anthracite Capital, Inc.		3,826		48,705
Anworth Mortgage Asset Corp. (c)		3,073		29,224
Apollo Investment Corp.		5,443		121,923
Arbor Realty Trust, Inc.		801		24,102
Ares Capital Corp. (c)		3,286		62,795
Argonaut Group, Inc. (a) (c)		2,096		73,067
Arrow Financial Corp.		677		16,769
Ashford Hospitality Trust, Inc. (c)		4,033		50,211
Asset Acceptance Capital Corp. (a) (c)		1,088		18,300
Asta Funding, Inc. (c)		788		23,987
Baldwin & Lyons, Inc.		544		13,894
Bancfirst Corp. (c)		434		23,436
The Bancorp, Inc. (a) (c)		622		18,411
BancTrust Financial Group, Inc. (c)		654		16,690
Bank Mutual Corp. (c)		4,076		49,360
Bank of Granite Corp.		1,031		19,558
Bank of the Ozarks, Inc. (c)		708		23,406
BankAtlantic Bancorp, Inc. (c)		3,167		43,736
BankFinancial Corp. (c)		1,589		28,300
Bankrate, Inc. (a) (c)		698		26,489
BankUnited Financial Corp. (c)		2,100		58,716
Banner Corp. (c)		792		35,117
Berkshire Hills Bancorp, Inc.		576		19,273
BFC Financial Corp. (a) (c)		1,572		10,045

The accompanying notes are an integral part of the financial statements.

64

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Financial - 22.0% (Continued)
BioMed Realty Trust, Inc. (c)		4,373	$	125,068
The BISYS Group, Inc. (a)		8,078		104,287
Boston Private Financial Holdings, Inc.		2,363		66,660
Bristol West Holdings, Inc. (c)		1,082		17,128
Brookline Bancorp, Inc.		4,127		54,353
Cadence Financial Corp.		602		13,045
Calamos Asset Management, Inc.		1,492		40,030
Camden National Corp.		424		19,555
Capital City Bank Group, Inc. (c)		875		30,887
Capital Corp of the West		634		20,345
Capital Lease Funding, Inc.		2,227		25,833
Capital Southwest Corp. (c)		153		19,315
Capital Trust, Inc. - Class A (c)		748		37,355
Capitol Bancorp Ltd.		824		38,069
Cardinal Financial Corp. (c)		1,582		16,215
Cascade Bancorp (c)		1,822		56,537
Cash America International, Inc.		1,898		89,016
Cass Information Systems, Inc. (c)		378		13,676
Cathay General Bancorp (c)		3,455		119,232
CBIZ, Inc. (a) (c)		3,945		27,497
CBRE Realty Finance, Inc. (a) (c)		660		10,369
Cedar Shopping Centers, Inc.		2,308		36,720
Centennial Bank Holdings Inc. (a)		3,976		37,613
Center Financial Corp.		815		19,536
Centerstate Banks of Florida, Inc. (c)		587		12,268
CentraCore Properties Trust		688		22,243
Central Pacific Financial Corp. (c)		1,966		76,202
Charter Financial Corp (c)		217		11,180
CharterMac		3,498		75,102
Chemical Financial Corp.		1,635		54,445
Chittenden Corp. (c)		3,136		96,244
Citizens Banking Corp. (c)		2,797		74,120
Citizens First Bancorp, Inc.		549		16,876
City Bank (c)		867		31,039
City Holding Co.		1,190		48,659
Clayton Holdings, Inc. (a)		561		10,496
Clifton Savings Bancorp, Inc. (c)		838		10,215
CNA Surety Corp. (a)		977		21,005
Coastal Financial Corp. (c)		1,096		18,358
CoBiz, Inc. (c)		914		20,145
Cohen & Steers, Inc. (c)		844		33,903
Columbia Bancorp/OR (c)		644		17,034
Columbia Banking System, Inc. (c)		977		34,312
Commerce Group, Inc.		3,643		108,379
Community Bancorp (a)		417		12,589
Community Bank System, Inc.		1,966		45,218
Community Banks, Inc. (c)		1,596		44,305
Community Trust Bancorp, Inc.		928		38,540
Compass Diversified Trust		854		14,646
CompuCredit Corp. (a) (c)		1,346		53,584
Corporate Office Properties Trust		2,172		109,621
Corus Bankshares, Inc. (c)		2,616		60,351
Cousins Properties, Inc. (c)		2,569		90,609
Crawford & Co. (c)		1,566		11,432
Credit Acceptance Corp. (a) (c)		635		21,165
Crescent Real Estate EQT Co.		5,283		104,339
Crystal River Capital, Inc. (c)		491		12,535
CVB Financial Corp. (c)		4,088		59,112

	SHARES		VALUE
Financial - 22.0% (Continued)
Cybersource Corp. (a) (c)		2,046	$	22,547
Darwin Professional Underwriters, Inc. (a)		340		7,973
Deerfield Triarc Capital Corp. (c)		3,469		58,730
Delphi Financial Group		2,708		109,566
Deluxe Corp.		3,342		84,218
DiamondRock Hospitality Co. (c)		4,298		77,407
Digital Insight Corp. (a)		2,317		89,181
Digital Realty Trust, Inc. (c)		1,668		57,096
Dime Community Bancshares (c)		1,727		24,195
Direct General Corp.		990		20,434
Dollar Financial Corp. (a)		801		22,316
Donegal Group, Inc.		818		16,025
Doral Financial Corp. (c)		6,029		17,303
Downey Financial Corp. (c)		1,370		99,435
Eastgroup Properties (c)		1,492		79,912
Education Realty Trust, Inc. (c)		1,695		25,035
eFunds Corp. (a) (c)		3,115		85,662
eHealth, Inc. (a) (c)		368		7,400
Electro Rent Corp. (a)		1,281		21,393
EMC INS Group, Inc. (c)		346		11,806
Enstar Group, Inc. (a) (c)		176		16,878
Enterprise Financial Services Corp. (c)		632		20,591
Entertainment Properties Trust (c)		1,677		98,004
Equity Inns, Inc. (c)		3,654		58,318
Equity Lifestyle Properties, Inc.		1,302		70,868
Equity One, Inc. (c)		2,558		68,196
eSpeed, Inc. - Class A (a)		1,375		12,004
Euronet Worldwide, Inc. (a)		2,285		67,842
Extra Space Storage, Inc.		3,792		69,242
Farmers Capital Bank Corp. (c)		413		14,096
FBL Financial Group, Inc.		811		31,694
Federal Agricultural Mortgage Corp. (c)		714		19,371
FelCor Lodging Trust, Inc. (c)		4,084		89,195
Fidelity Bankshares, Inc.		1,640		65,059
Fieldstone Investment Corp. (c)		3,164		13,858
Financial Federal Corp. (c)		1,814		53,350
First Bancorp Puerto Rico (c)		4,704		44,829
First Bancorp/Troy NC (c)		713		15,572
First Busey Corp.		1,019		23,488
First Cash Financial Services, Inc. (a)		1,868		48,325
First Charter Corp.		2,085		51,291
First Commonwealth Financial Corp. (c)		4,730		63,524
First Community Bancorp/CA		1,518		79,346
First Community Bancshares, Inc/VA		669		26,466
First Financial Bancorp (c)		2,249		37,356
First Financial Bankshares, Inc. (c)		1,349		56,469
First Financial Corp/IN (c)		844		29,920
First Financial Holdings, Inc. (c)		772		30,247
First Indiana Corp.		833		21,125
First Industrial Realty Trust, Inc. (c)		3,000		140,670
First Merchants Corp.		1,157		31,459
First Mercury Financial Corp. (a) (c)		737		17,334
First Midwest Bancorp, Inc/IL		3,342		129,269
First Niagara Financial Group, Inc. (c)		7,452		110,737
First Place Financial Corp/OH		1,170		27,483
First Potomac Realty Trust (c)		1,608		46,809
First Regional Bancorp (a)		544		18,545
First Republic Bank (c)		1,402		54,790

The accompanying notes are an integral part of the financial statements.

65

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

	SHARES		VALUE
Financial - 22.0% (Continued)
First South Bancorp, Inc. (c)		548	$	17,476
First State Bancorp.		1,098		27,175
FirstFed Financial Corp. (a) (c)		1,031		69,046
FirstMerit Corp. (c)		5,348		129,101
Flagstar Bancorp, Inc. (c)		2,643		39,222
Flushing Financial Corp. (c)		1,200		20,484
FNB Corp/Christiansburg VA (c)		409		16,994
FNB Corp/Hermitage PA (c)		3,853		70,394
FPIC Insurance Group, Inc. (a) (c)		700		27,279
Franklin Bank Corp/Houston TX (a) (c)		1,525		31,324
Franklin Street Properties Corp. (c)		3,924		82,600
Fremont General Corp. (c)		4,410		71,486
Friedman Billings Ramsey Group, Inc. (c)		9,855		78,840
Frontier Financial Corp. (c)		2,668		77,986
Gamco Investors, Inc.		394		15,153
GB&T Bancshares, Inc. (c)		791		17,536
Getty Realty Corp. (c)		1,095		33,835
GFI Group, Inc. (a) (c)		777		48,376
Glacier Bancorp, Inc. (c)		3,254		79,516
Gladstone Capital Corp. (c)		707		16,869
Gladstone Investment Corp. (c)		1,033		15,815
Glimcher Realty Trust (c)		2,456		65,600
GMH Communities Trust (c)		2,662		27,019
Gramercy Capital Corp. (c)		1,251		38,643
Great American Financial Resources, Inc.		591		13,623
Great Southern Bancorp, Inc. (c)		702		20,716
Greater Bay Bancorp		3,321		87,442
Greene County Bancshares, Inc. (c)		489		19,428
Greenhill & Co, Inc. (c)		1,148		84,722
H&E Equipment Services, Inc. (a) (c)		783		19,395
Hancock Holding Co. (c)		1,734		91,625
Hanmi Financial Corp. (c)		2,724		61,372
Harleysville Group, Inc.		829		28,866
Harleysville National Corp. (c)		1,878		36,264
Harris & Harris Group, Inc. (a) (c)		1,389		16,793
Health Care REIT, Inc.		1		38
Healthcare Realty Trust, Inc. (c)		3,114		123,128
HealthExtras, Inc. (a)		1,769		42,633
Heartland Financial USA, Inc. (c)		944		27,234
Heritage Commerce Corp. (c)		744		19,820
Hersha Hospitality Trust (c)		1,816		20,593
Highland Hospitality Corp. (c)		4,004		57,057
Highwoods Properties, Inc.		3,622		147,633
Hilb Rogal & Hobbs Co. (c)		2,357		99,277
Home Bancshares, Inc. (c)		777		18,679
Home Federal Bancorp, Inc. (c)		405		6,950
Home Properties, Inc. (c)		2,238		132,646
HomeBanc Corp.		3,808		16,108
Horace Mann Educators Corp. (c)		2,787		56,297
Horizon Financial Corp. (c)		830		19,970
Huron Consulting Group, Inc. (a) (c)		1,134		51,416
Hypercom Corp. (a) (c)		3,607		22,904
IBERIABANK Corp. (c)		652		38,501
IMPAC Mortgage Holdings, Inc. (c)		5,100		44,880
Independence Holding Co. (c)		259		5,654
Independent Bank Corp. Massachusetts		963		34,697
Independent Bank Corp. Michigan (c)		1,512		38,238
Infinity Property & Casualty Corp. (c)		1,291		62,471

	SHARES		VALUE
Financial - 22.0% (Continued)
Inland Real Estate Corp. (c)		4,539	$	84,970
Innkeepers USA Trust		2,897		44,903
Integra Bank Corp. (c)		1,172		32,253
Interactive Data Corp. (c)		2,335		56,133
Interchange Financial Services (c)		1,123		25,818
International Bancshares Corp.		3,031		93,688
International Securities Exchange, Inc.		2,478		115,946
Interpool, Inc. (c)		780		18,221
Intervest Bancshares Corp. (a)		316		10,874
INVESTools, Inc. (a)		2,944		40,598
Investors Bancorp, Inc. (a) (c)		3,572		56,188
Investors Real Estate Trust		3,126		32,073
Irwin Financial Corp. (c)		1,355		30,664
ITLA Capital Corp. (c)		319		18,473
Jack Henry & Associates, Inc. (c)		5,328		114,019
James River Group, Inc. (a)		594		19,198
JER Investors Trust, Inc. (c)		1,673		34,581
John H Harland Co.		1,780		89,356
Kansas City Life Insurance Co.		202		10,116
KBW, Inc. (a)		447		13,137
Kearny Financial Corp. (c)		1,466		23,544
Kite Realty Group Trust (c)		1,916		35,676
KKR Financial Corp. (c)		5,392		144,452
KNBT Bancorp, Inc.		1,930		32,289
Knight Capital Group, Inc. (a)		6,963		133,481
Kronos, Inc. (a)		2,080		76,419
LaBranche & Co, Inc. (a) (c)		3,496		34,366
Lakeland Bancorp, Inc. (c)		1,198		17,850
Lakeland Financial Corp. (c)		774		19,760
LandAmerica Financial Group, Inc. (c)		1,128		71,188
LaSalle Hotel Properties (c)		2,677		122,740
Lexington Corporate Properties Trust (c)		3,543		79,434
LTC Properties, Inc. (c)		1,504		41,074
Luminent Mortgage Capital, Inc.		2,633		25,566
Macatawa Bank Corp. (c)		895		19,028
MAF Bancorp, Inc.		2,256		100,821
Maguire Properties, Inc. (c)		2,539		101,560
MainSource Financial Group, Inc.		1,266		21,451
MarketAxess Holdings, Inc. (a) (c)		2,052		27,846
Marlin Business Services, Inc. (a)		771		18,527
MB Financial Corp. (c)		1,906		71,685
MBT Financial Corp. (c)		928		14,217
MCG Capital Corp.		3,574		72,624
Mcgrath Rentcorp (c)		1,474		45,149
Meadowbrook Insurance Group, Inc. (a)		1,639		16,210
Medallion Financial Corp.		956		11,826
Medical Properties Trust, Inc. (c)		2,609		39,918
Mercantile Bank Corp. (c)		446		16,814
MetroCorp Bancshares, Inc. (c)		453		9,531
MFA Mortgage Investments, Inc. (c)		5,338		41,049
Mid-America Apartment Communities, Inc. (c)		1,539		88,092
The Midland Co. (c)		780		32,721
Mid-State Bancshares (c)		1,485		54,039
Midwest Banc Holdings, Inc. (c)		1,272		30,210
The Mills Corp. (c)		3,797		75,940
Morningstar, Inc. (a)		916		41,266
MortgageIT Holdings, Inc. (c)		1,951		28,777
MVC Capital, Inc. (c)		1,114		14,883

The accompanying notes are an integral part of the financial statements.

66

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Financial - 22.0% (Continued)
Nara Bancorp, Inc. (c)		1,422	$	29,748
NASB Financial, Inc. (c)		171		7,071
National City Corp.		1		6
National Financial Partners Corp.		2,507		110,233
National Health Investors, Inc. (c)		1,518		50,094
National Interstate Corp. (c)		1,032		25,078
National Penn Bancshares, Inc. (c)		3,225		65,306
National Retail Properties, Inc.		3,886		89,184
National Western Life Insurance Co.		124		28,537
Nationwide Health Properties, Inc.		5,560		168,023
Navigators Group, Inc. (a) (c)		850		40,953
NBT Bancorp, Inc.		2,312		58,979
Netbank, Inc. (c)		3,110		14,430
NewAlliance Bancshares, Inc. (c)		7,402		121,393
Newcastle Investment Corp. (c)		2,950		92,394
Newkirk Realty Trust, Inc. (c)		1,262		22,766
NGP Capital Resources Co. (c)		1,087		18,207
Northern Empire Bancshares (a)		620		18,315
NorthStar Realty Finance Corp. (c)		3,886		64,391
Northwest Bancorp, Inc. (c)		1,224		33,611
Novastar Financial, Inc. (c)		2,413		64,306
NYMAGIC, Inc. (c)		377		13,798
OceanFirst Financial Corp.		498		11,419
Ocwen Financial Corp. (a) (c)		2,295		36,399
Odyssey Re Holdings Corp. (c)		788		29,392
Ohio Casualty Corp. (c)		4,260		126,991
Old National Bancorp (c)		4,438		83,967
Old Second Bancorp, Inc. (c)		842		24,671
Omega Financial Corp. (c)		786		25,089
Omega Healthcare Investors, Inc. (c)		3,891		68,949
optionsXpress Holdings, Inc.		1,390		31,539
Oriental Financial Group (c)		1,323		17,133
Pacific Capital Bancorp (c)		3,130		105,105
Park National Corp. (c)		760		75,240
Parkway Properties, Inc. (c)		878		44,787
Partners Trust Financial Group, Inc. (c)		3,240		37,714
Pennfed Financial Services, Inc.		640		12,365
Pennsylvania Real Estate Investment Trust		2,459		96,835
Penson Worldwide, Inc. (a) (c)		486		13,321
Peoples Bancorp Inc.		707		20,998
PFF Bancorp, Inc. (c)		1,595		55,043
The Phoenix Cos., Inc. (c)		7,551		119,985
Pico Holdings, Inc. (a)		720		25,034
Pinnacle Financial Partners, Inc. (a) (c)		998		33,114
Piper Jaffray Companies, Inc. (a) (c)		1,231		80,200
Placer Sierra Bancshares		763		18,137
Pma Cap Corp. (a) (c)		2,158		19,897
Portfolio Recovery Associates, Inc. (a) (c)		973		45,429
Post Properties, Inc. (c)		2,875		131,388
Preferred Bank		230		13,821
PremierWest Bancorp (c)		878		14,013
Presidential Life Corp.		1,440		31,608
PrivateBancorp, Inc. (c)		1,192		49,623
ProAssurance Corp. (a) (c)		2,226		111,122
Prosperity Bancshares, Inc.		1,715		59,185
Provident Bankshares Corp. (c)		2,138		76,113
Provident Financial Services, Inc.		4,542		82,346
Provident New York Bancorp (c)		2,847		42,648

	SHARES		VALUE
Financial - 22.0% (Continued)
PS Business Parks, Inc.		1,027	$	72,619
QC Holdings, Inc. (a) (c)		410		6,544
RAIT Investment Trust (c)		3,417		117,818
Ramco-Gershenson Properties (c)		1,097		41,840
Realty Income Corp. (c)		6,534		180,992
Redwood Trust, Inc. (c)		1,227		71,264
Renasant Corp. (c)		1,036		31,733
Republic Bancorp Inc./KY		415		10,412
Republic Bancorp Inc./MI		4,997		67,260
Republic Property Trust (c)		1,748		20,172
Resource Capital Corporation (c)		233		3,949
Rewards Network, Inc. (a)		1,726		11,996
R-G Financial Corp. (c)		1,803		13,793
RLI Corp. (c)		1,459		82,317
Rockville Financial, Inc. (c)		490		8,746
Roma Financial Corp. (a) (c)		676		11,195
Royal Bancshares of Pennsylvania		265		6,954
S&T Bancorp, Inc. (c)		1,725		59,806
S1 Corp. (a)		4,763		26,244
Safety Insurance Group, Inc. (c)		927		47,008
Sanders Morris Harris Group, Inc. (c)		895		11,429
Sandy Spring Bancorp, Inc. (c)		914		34,897
Santander BanCorp (c)		295		5,266
Saul Centers, Inc.		735		40,565
SCBT Financial Corp. (c)		541		22,576
SCPIE Holdings, Inc. (a)		655		17,122
Seabright Insurance Holdings, Inc. (a)		1,036		18,658
Seacoast Banking Corp of Florida (c)		967		23,982
Security Bank Corp.		1,074		24,509
Selective Insurance Group (c)		1,956		112,059
Semtech Corp. (a)		4,781		62,488
Senior Housing Properties Trust (c)		4,291		105,044
Shore Bancshares, Inc. (c)		545		16,437
Sierra Bancorp (c)		402		11,795
Signature Bank (a) (c)		1,909		59,141
Simmons First National Corp. (c)		896		28,269
Smithtown Bancorp, Inc. (c)		507		13,750
Sotheby’s Holdings (c)		4,264		132,269
Southside Bancshares, Inc. (c)		645		16,596
Southwest Bancorp Inc.		951		26,495
Sovran Self Storage, Inc.		1,188		68,049
Spirit Finance Corp. (c)		6,501		81,067
State Auto Financial Corp. (c)		874		30,354
State National Bancshares, Inc. (c)		685		26,366
Sterling Bancorp (c)		1,204		23,719
Sterling Bancshares, Inc. (c)		4,596		59,840
Sterling Financial Corp./PA (c)		1,659		39,269
Sterling Financial Corp./WA (c)		2,475		83,680
Stewart Information Services Corp. (c)		1,067		46,265
Stifel Financial Corp. (a) (c)		774		30,364
Strategic Hotels & Resorts, Inc.		4,905		106,880
Suffolk Bancorp (c)		666		25,395
Sun Bancorp Inc. (a) (c)		1,013		21,344
Sun Communities, Inc.		1,215		39,317
Sunstone Hotel Investors, Inc.		3,884		103,819
Superior Bancorp (a) (c)		1,180		13,381
Susquehanna Bancshares, Inc. (c)		3,472		93,327
SVB Financial Group (a) (c)		2,381		111,002

The accompanying notes are an integral part of the financial statements.

67

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

	SHARES		VALUE
Financial - 22.0% (Continued)
SWS Group, Inc. (c)		1,060	$	37,842
SY Bancorp, Inc. (c)		789		22,092
Tanger Factory Outlet Centers (c)		1,990		77,769
Taylor Capital Group, Inc.		389		14,241
Technology Investment Capital Corp.		1,210		19,529
Texas Capital Bancshares, Inc. (a) (c)		1,557		30,953
Texas United Bancshares, Inc. (c)		603		20,707
TheStreet.Com, Inc. (c)		1,196		10,644
Thomas Weisel Partners Group, Inc. (a) (c)		454		9,579
TierOne Corp. (c)		1,134		35,846
TNS, Inc. (a) (c)		1,569		30,203
Tompkins Trustco, Inc. (c)		390		17,725
Tower Group, Inc.		1,045		32,468
TradeStation Group, Inc. (a) (c)		1,672		22,990
Triad Guaranty, Inc. (a) (c)		750		41,153
Trico Bancshares (c)		928		25,251
Trustco Bank Corp. NY (c)		5,037		56,011
Trustmark Corp.		3,065		100,256
Trustreet Properties, Inc.		4,525		76,246
UCBH Holdings, Inc. (c)		6,333		111,207
UMB Financial Corp. (c)		2,121		77,438
Umpqua Holdings Corp. (c)		3,759		110,627
Union Bankshares Corp. (c)		889		27,195
United Bankshares, Inc.		2,491		96,277
United Community Banks, Inc.		2,205		71,266
United Community Financial Corp.		1,754		21,469
United Fire & Casualty Co.		1,384		48,786
United PanAm Financial Corp. (a)		668		9,192
United Security Bancshares/CA (c)		483		11,640
Universal American Financial Corp. (a)		2,480		46,227
Universal Health Realty Income Trust (c)		733		28,572
Univest Corporation of Pennsylvania (c)		719		21,915
Urstadt Biddle Properties, Inc. (c)		1,412		26,955
USB Holding Co., Inc. (c)		727		17,521
USI Holdings Corp. (a)		3,100		47,616
U-Store-It Trust (c)		3,152		64,774
Value Line, Inc.		71		3,227
ViewPoint Financial Group (a) (c)		764		12,942
Vineyard National Bancorp (c)		564		12,983
Virginia Commerce Bancorp (a) (c)		1,045		20,775
Virginia Financial Group, Inc. (c)		724		20,265
Waddell & Reed Financial, Inc. (c)		5,683		155,487
Washington Real Estate Investment Trust (c)		3,019		120,760
Washington Trust Bancorp, Inc. (c)		745		20,778
Wauwatosa Holdings, Inc. (a) (c)		668		11,904
WesBanco, Inc. (c)		1,471		49,323
West Bancorporation, Inc. (c)		1,099		19,540
West Coast Bancorp (c)		1,038		35,956
Westamerica Bancorporation (c)		2,125		107,589
Western Alliance Bancorp (a) (c)		854		29,694
Westfield Financial, Inc.		245		8,477
Willow Grove Bancorp, Inc.		970		14,472
Wilshire Bancorp, Inc. (c)		961		18,230
Winston Hotels, Inc.		1,714		22,710
Winthrop Realty Trust (c)		1,830		12,536
Wintrust Financial Corp. (c)		1,717		82,450
World Acceptance Corp. (a)		1,185		55,636
Wright Express Corp. (a) (c)		2,707		84,377

	SHARES		VALUE
Financial - 22.0% (Continued)
WSFS Financial Corp.		324	$	21,685
Yardville National Bancorp		654		24,669
Zenith National Insurance Corp.		2,406		112,865
				21,135,994
Health Care - 10.6%
Abaxis, Inc. (a) (c)		1,346		25,911
Abiomed, Inc. (a) (c)		1,566		22,081
Acadia Pharmaceuticals, Inc. (a) (c)		1,622		14,257
Adams Respiratory Therapeutics, Inc. (a) (c)		1,976		80,641
Adeza Biomedical Corp. (a) (c)		980		14,612
Adolor Corp. (a) (c)		3,034		22,816
Advanced Magnetics, Inc. (a) (c)		520		31,054
Adventrx Pharmaceuticals, Inc. (a) (c)		3,655		10,782
Affymetrix, Inc. (a) (c)		4,523		104,300
Air Methods Corp. (a) (c)		676		18,874
Akorn, Inc. (a)		3,024		18,900
Albany Molecular Research, Inc. (a)		1,637		17,287
Alexion Pharmaceuticals, Inc. (a)		2,330		94,109
Align Technology, Inc. (a) (c)		3,982		55,629
Alkermes, Inc. (a)		6,483		86,678
Alliance Imaging, Inc. (a) (c)		1,021		6,790
Allscripts Healthcare Solutions, Inc. (a) (c)		3,014		81,348
Alnylam Pharmaceuticals, Inc. (a) (c)		2,083		44,576
Alpharma, Inc.		2,850		68,685
Altus Pharmaceuticals, Inc. (a) (c)		411		7,747
Amedisys, Inc. (a) (c)		1,691		55,572
American Medical Systems Holdings, Inc. (a) (c)		4,675		86,581
American Oriental Bioengineering, Inc. (a) (c)		2,909		33,948
AMERIGROUP Corp. (a) (c)		3,366		120,806
Amsurg Corp. (a)		1,911		43,953
Anadys Pharmaceuticals, Inc. (a) (c)		1,854		9,122
Analogic Corp.		855		48,000
Angiodynamics, Inc. (a) (c)		797		17,128
Applera Corp - Celera Genomics Group (a) (c)		5,169		72,314
Apria Healthcare Group, Inc. (a)		2,950		78,617
Arena Pharmaceuticals, Inc. (a) (c)		3,166		40,873
Ariad Pharmaceuticals, Inc. (a) (c)		4,161		21,388
Array Biopharma, Inc. (a) (c)		2,544		32,868
Arrow International, Inc. (c)		1,525		53,954
Arthrocare Corp. (a) (c)		1,692		67,545
Aspect Medical Systems, Inc. (a) (c)		1,015		19,092
Atherogenics, Inc. (a) (c)		2,646		26,222
Auxilium Pharmaceuticals, Inc. (a)		1,412		20,742
Avanir Pharmaceuticals (a) (c)		2,129		4,918
AVI BioPharma, Inc. (a) (c)		3,375		10,733
Bentley Pharmaceuticals, Inc. (a) (c)		1,292		13,140
BioCryst Pharmaceuticals, Inc. (a) (c)		1,496		17,294
Bioenvision, Inc. (a) (c)		2,624		12,175
BioMarin Pharmaceuticals, Inc. (a)		5,720		93,751
Bio-Rad Laboratories, Inc. (a) (c)		1,213		100,097
Bio-Reference Labs, Inc. (a)		700		15,743
Biosite, Inc. (a) (c)		1,055		51,537
Bradley Pharmaceuticals, Inc. (a)		947		19,489
Bruker BioSciences Corp. (a)		2,842		21,343
Cadence Pharmaceuticals, Inc. (a)		470		5,790
Candela Corp. (a)		1,540		19,050
Capital Senior Living Corp. (a) (c)		1,416		15,066

The accompanying notes are an integral part of the financial statements.

68

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Health Care - 10.6% (Continued)
Caraco Pharmaceutical Laboratories Ltd. (a) (c)		655	$	9,170
Cell Genesys, Inc. (a) (c)		3,323		11,265
Centene Corp. (a)		2,890		71,007
Cepheid, Inc. (a) (c)		3,660		31,110
Cerus Corp. (a) (c)		1,808		10,595
Chattem, Inc. (a) (c)		1,110		55,589
Coley Pharmaceutical Group, Inc. (a) (c)		1,167		11,308
Combinatorx, Inc. (a)		1,604		13,891
Computer Programs & Systems, Inc.		609		20,700
Conceptus, Inc. (a)		1,484		31,594
Conmed Corp. (a)		1,905		44,044
Conor Medsystems, Inc. (a)		2,015		63,130
Corvel Corp. (a) (c)		512		24,332
Cotherix, Inc. (a)		1,302		17,564
Cubist Pharmaceuticals, Inc. (a) (c)		3,649		66,083
CV Therapeutics, Inc. (a) (c)		3,706		51,736
Cyberonics, Inc. (a) (c)		1,381		28,504
Cypress Bioscience, Inc. (a) (c)		2,147		16,639
Cytokinetics, Inc. (a)		1,671		12,499
Datascope Corp. (c)		867		31,593
deCODE genetics, Inc. (a) (c)		4,128		18,700
Dendreon Corp. (a) (c)		4,782		19,941
Depomed, Inc. (a) (c)		2,395		8,263
DexCom, Inc. (a)		1,096		10,807
Digene Corp. (a) (c)		1,176		56,354
Diversa Corp. (a) (c)		2,045		22,250
DJ Orthopedics, Inc. (a) (c)		1,526		65,343
Durect Corp. (a) (c)		4,110		18,248
Eclipsys Corp. (a)		2,945		60,549
Emergent Biosolutions, Inc. (a)		330		3,683
Emeritus Corp. (a) (c)		322		8,002
Emisphere Technologies, Inc. (a) (c)		1,551		8,205
Encysive Pharmaceuticals, Inc. (a) (c)		3,967		16,701
Enzo Biochem, Inc. (a) (c)		1,774		25,315
Enzon Pharmaceuticals, Inc. (a)		2,845		24,211
eResearch Technology, Inc. (a) (c)		3,290		22,142
ev3, Inc. (a) (c)		1,106		19,056
Exelixis, Inc. (a) (c)		5,624		50,616
Five Star Quality Care, Inc. (a) (c)		2,056		22,924
Foxhollow Technologies, Inc. (a)		1,215		26,220
Genesis HealthCare Corp. (a)		1,237		58,424
Genitope Corp. (a) (c)		1,829		6,438
Genomic Health, Inc. (a)		810		15,066
Genta, Inc. (a)		8,957		3,963
Gentiva Health Services, Inc. (a) (c)		1,803		34,365
Geron Corp. (a)		4,423		38,834
Greatbatch, Inc. (a) (c)		1,399		37,661
GTx, Inc. (a) (c)		840		14,986
Haemonetics Corp./Mass (a) (c)		1,783		80,271
Hana Biosciences, Inc. (a) (c)		1,870		11,912
Hansen Medical, Inc. (a) (c)		413		4,766
Healthcare Services Group (c)		1,768		51,201
Healthspring, Inc. (a)		1,224		24,908
HealthTronics, Inc. (a)		2,356		15,691
Healthways, Inc. (a) (c)		2,314		110,401
Hi-Tech Pharmacal Co., Inc. (a) (c)		619		7,533
Hologic, Inc. (a) (c)		3,531		166,946
Horizon Health Corp. (a) (c)		978		19,139

	SHARES		VALUE
Health Care - 10.6% (Continued)
Human Genome Sciences, Inc. (a) (c)		8,807	$	109,559
Hythiam, Inc. (a) (c)		1,706		15,763
ICOS Corp. (a) (c)		4,378		147,933
ICU Medical, Inc. (a)		863		35,107
Idenix Pharmaceuticals, Inc. (a) (c)		1,608		13,974
I-Flow Corp. (a) (c)		1,566		23,412
Illumina, Inc. (a) (c)		3,080		121,075
Immucor, Inc. (a)		4,544		132,821
Incyte Corp. (a) (c)		5,617		32,803
Indevus Pharmaceuticals, Inc. (a) (c)		3,665		26,021
Integra LifeSciences Holdings Corp. (a) (c)		1,253		53,365
InterMune, Inc. (a) (c)		1,745		53,659
Intralase Corp. (a)		1,396		31,242
Invacare Corp. (c)		2,083		51,138
inVentiv Health Inc. (a) (c)		1,954		69,074
Inverness Medical Innovations, Inc. (a) (c)		2,253		87,191
IRIS International, Inc. (a) (c)		1,088		13,763
Isis Pharmaceuticals, Inc. (a) (c)		4,897		54,455
Kendle International, Inc. (a) (c)		799		25,129
Kensey Nash Corp. (a) (c)		753		23,945
Keryx Biopharmaceuticals, Inc. (a)		2,808		37,346
Kindred Healthcare, Inc. (a) (c)		2,262		57,116
KV Pharmaceutical Co. (a)		2,594		61,685
Kyphon, Inc. (a)		2,880		116,352
Landauer, Inc.		608		31,902
LCA-Vision, Inc. (c)		1,391		47,795
Lexicon Genetics, Inc. (a) (c)		4,342		15,675
LHC Group, Inc. (a)		722		20,584
Lifecell Corp. (a) (c)		2,246		54,218
Luminex Corp. (a)		2,083		26,454
Magellan Health Services, Inc. (a)		2,410		104,160
MannKind Corp. (a) (c)		1,643		27,093
Martek Biosciences Corp. (a) (c)		2,149		50,158
Matria Healthcare, Inc. (a) (c)		1,405		40,366
Maxygen, Inc. (a)		1,976		21,282
Medarex, Inc. (a) (c)		8,195		121,204
Medcath Corp. (a)		531		14,528
Medical Action Industries, Inc. (a) (c)		598		19,280
Medicines Co. (a)		3,358		106,516
Medicis Pharmaceutical (c)		3,649		128,189
Mentor Corp. (c)		2,366		115,626
Meridian Bioscience, Inc. (c)		1,368		33,557
Merit Medical Systems, Inc. (a) (c)		1,725		27,324
Metabasis Therapeutics, Inc. (a) (c)		1,339		10,069
Metabolix, Inc. (a) (c)		458		8,675
MGI Pharma, Inc. (a) (c)		5,240		96,468
Molecular Devices Corp. (a) (c)		1,058		22,292
Molina Healthcare, Inc. (a)		818		26,593
Momenta Pharmaceuticals, Inc. (a) (c)		1,409		22,164
Monogram Biosciences, Inc. (a) (c)		8,731		15,541
MWI Veterinary Supply, Inc. (a)		376		12,145
Myriad Genetics, Inc. (a) (c)		2,644		82,757
Nabi Biopharmaceuticals (a) (c)		4,020		27,256
Nastech Pharmaceutical, Inc. (a) (c)		1,407		21,288
National Healthcare Corp. (c)		351		19,375
Natus Medical, Inc. (a) (c)		1,426		23,686
Nektar Therapeutics (a)		6,002		91,290

The accompanying notes are an integral part of the financial statements.

69

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

	SHARES		VALUE
Health Care - 10.6% (Continued)
Neurocrine Biosciences, Inc. (a) (c)		2,530	$	26,363
Neurometrix, Inc. (a) (c)		812		12,107
New River Pharmaceuticals, Inc. (a) (c)		1,033		56,515
Nighthawk Radiology Holdings, Inc. (a) (c)		368		9,384
Northfield Laboratories, Inc. (a) (c)		1,695		6,899
Northstar Neuroscience, Inc. (a) (c)		702		10,095
Novavax, Inc. (a)		4,116		16,876
Noven Pharmaceuticals, Inc. (a) (c)		1,532		38,989
NPS Pharmaceuticals, Inc. (a)		3,096		14,025
NuVasive, Inc. (a) (c)		2,157		49,827
Nuvelo, Inc. (a) (c)		3,471		13,884
Nxstage Medical, Inc. (a) (c)		788		6,603
Odyssey HealthCare, Inc. (a) (c)		2,239		29,689
Omnicell, Inc. (a)		1,770		32,975
Onyx Pharmaceuticals, Inc. (a) (c)		2,778		29,391
Option Care, Inc. (c)		1,752		24,966
OraSure Technologies, Inc. (a)		3,080		25,441
OSI Pharmaceuticals, Inc. (a) (c)		3,813		133,379
Osiris Therapeutics, Inc. (a) (c)		229		5,798
Owens & Minor, Inc. (c)		2,690		84,116
Pain Therapeutics, Inc. (a) (c)		2,316		20,612
Palomar Medical Technologies, Inc. (a) (c)		1,166		59,081
Panacos Pharmaceuticals, Inc. (a) (c)		3,392		13,602
Par Pharmaceutical Cos., Inc. (a) (c)		2,355		52,681
Parexel International Corp. (a) (c)		1,821		52,754
Penwest Pharmaceuticals Co. (a) (c)		1,479		24,581
Peregrine Pharmaceuticals, Inc. (a) (c)		12,762		14,804
Perrigo Co. (c)		5,208		90,098
Per-Se Technologies, Inc. (a)		2,178		60,505
PharmaNet Development Group, Inc. (a) (c)		1,141		25,182
Pharmion Corp. (a) (c)		1,590		40,927
Phase Forward, Inc. (a) (c)		2,210		33,106
PolyMedica Corp.		1,542		62,312
Pozen, Inc. (a) (c)		1,683		28,594
PRA International (a) (c)		1,164		29,414
Progenics Pharmaceuticals, Inc. (a) (c)		1,495		38,481
PSS World Medical, Inc. (a)		4,527		88,412
Psychiatric Solutions, Inc. (a)		3,548		133,121
Quality Systems, Inc. (c)		1,100		40,997
Quidel Corp. (a)		1,958		26,668
Radiation Therapy Services, Inc. (a) (c)		826		26,036
Regeneron Pharmaceuticals, Inc. (a) (c)		3,394		68,118
RehabCare Group, Inc. (a) (c)		1,045		15,518
Renovis, Inc. (a) (c)		1,460		4,614
Replidyne, Inc. (a) (c)		334		1,917
Res-Care, Inc. (a)		1,482		26,898
Rigel Pharmaceuticals, Inc. (a)		1,664		19,752
Salix Pharmaceuticals Ltd. (a) (c)		3,119		37,958
Sangamo Biosciences, Inc. (a) (c)		1,881		12,415
Santarus, Inc. (a) (c)		2,994		23,443
Savient Pharmaceuticals, Inc. (a)		4,150		46,521
Sciele Pharma, Inc. (a) (c)		1,952		46,848
Senomyx, Inc. (a)		1,942		25,227
Sirna Therapeutics, Inc. (a)		2,618		34,060
Sirona Dental Systems, Inc. (c)		1,147		44,171
Solexa, Inc. (a)		1,533		20,159
Somaxon Pharmaceuticals, Inc. (a) (c)		288		4,087

	SHARES		VALUE
Health Care - 10.6% (Continued)
SonoSite, Inc. (a) (c)		1,092	$	33,776
Spectranetics Corp. (a) (c)		1,992		22,490
Stereotaxis, Inc. (a) (c)		1,526		15,748
Steris Corp. (c)		4,507		113,441
Sun Healthcare Group, Inc. (a) (c)		1,507		19,033
Sunrise Senior Living, Inc. (a) (c)		2,893		88,873
SuperGen, Inc. (a)		3,316		16,845
SurModics, Inc. (a) (c)		1,067		33,205
Symbion, Inc. (a) (c)		1,209		22,379
Symmetry Medical, Inc. (a) (c)		2,272		31,422
Tanox, Inc. (a) (c)		1,588		31,601
Telik, Inc. (a) (c)		3,503		15,518
Thermogenesis (a) (c)		3,676		15,844
Thoratec Corp. (a) (c)		3,533		62,110
Trimeris, Inc. (a) (c)		1,107		14,070
Trubion Pharmaceuticals, Inc. (a) (c)		306		5,511
United Surgical Partners International, Inc. (a) (c)		2,978		84,426
United Therapeutics Corp. (a) (c)		1,580		85,905
Valeant Pharmaceuticals International		6,222		107,267
Ventana Medical Systems (a) (c)		1,878		80,810
Viasys Healthcare, Inc. (a)		2,169		60,342
Viropharma, Inc. (a)		4,596		67,285
Visicu, Inc. (a) (c)		449		5,029
VistaCare, Inc. (a) (c)		689		6,993
Vital Images, Inc. (a) (c)		818		28,466
Vital Signs, Inc.		445		22,214
Volcano Corporation (a) (c)		557		9,129
West Pharmaceutical Services, Inc. (c)		2,167		111,015
Wright Medical Group, Inc. (a) (c)		2,228		51,868
Xenoport, Inc. (a) (c)		1,311		32,185
Young Innovations, Inc.		265		8,824
Zoll Medical Corp. (a)		645		37,565
Zymogenetics, Inc. (a) (c)		2,443		38,038
				10,187,977
Materials - 8.7%
AAON, Inc.		628		16,504
Acuity Brands, Inc.		3,008		156,536
AEP Industries, Inc. (a)		466		24,842
AK Steel Holding Corp. (a)		7,378		124,688
Albany International Corp. (c)		1,714		56,408
Alico, Inc. (c)		207		10,480
AM Castle & Co.		656		16,695
AMCOL International Corp. (c)		1,473		40,861
American Vanguard Corp. (c)		1,186		18,857
Ameron International Corp.		586		44,753
Ampco-Pittsburgh Corp.		468		15,669
Amrep Corp.		109		13,353
Andersons, Inc. (c)		948		40,186
Apogee Enterprises, Inc.		1,802		34,797
Aptargroup, Inc.		2,289		135,143
Arch Chemicals, Inc.		1,531		50,998
Avatar Holdings, Inc. (a) (c)		320		25,872
Balchem Corp.		722		18,541
Barnes Group, Inc. (c)		2,646		57,551
Beacon Roofing Supply, Inc. (a) (c)		2,851		53,656
Bluegreen Corp. (a) (c)		1,400		17,962

The accompanying notes are an integral part of the financial statements.

70

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Materials - 8.7% (Continued)
BlueLinx Holdings, Inc. (c)		840	$	8,736
Bowater, Inc. (c)		3,747		84,308
Brady Corp. (c)		2,931		109,268
Brookfield Homes Corp. (c)		809		30,378
Brush Engineered Materials, Inc. (a) (c)		1,301		43,935
Buckeye Technologies, Inc. (a)		2,529		30,297
Building Material Holding Corp. (c)		1,939		47,874
Cabot Microelectronics Corp. (a) (c)		1,600		54,304
Calgon Carbon Corp. (a) (c)		2,667		16,535
California Coastal Communities, Inc.		662		14,200
Cambrex Corp. (c)		1,710		38,851
Caraustar Industries, Inc. (a) (c)		1,877		15,185
Century Aluminum Co. (a) (c)		1,470		65,636
Ceradyne, Inc. (a) (c)		1,799		101,644
CF Industries Holdings, Inc. (c)		3,694		94,714
Chaparral Steel Co.		3,083		136,484
Chesapeake Corp. (c)		1,333		22,688
China BAK Battery, Inc. (a) (c)		1,764		11,501
CIRCOR International, Inc. (c)		978		35,981
Clarcor, Inc. (c)		3,474		117,456
Clean Harbors, Inc. (a)		1,022		49,475
Cleveland-Cliffs, Inc. (c)		2,840		137,570
Coeur d’Alene Mines Corp. (a) (c)		18,626		92,199
Comfort Systems USA, Inc.		2,698		34,103
Compass Minerals International, Inc.		2,083		65,739
CompX International, Inc.		107		2,157
Consolidated-Tomoka Land Co. (c)		314		22,734
Delta & Pine Land Co.		2,384		96,433
Deltic Timber Corp. (c)		687		38,321
Drew Industries, Inc. (a) (c)		1,206		31,368
Dycom Industries, Inc. (a) (c)		2,937		62,029
Dynamic Materials Corp.		768		21,581
ElkCorp		1,373		56,417
EMCOR Group, Inc. (a)		2,109		119,897
Encore Wire Corp. (a) (c)		1,515		33,345
Energy Conversion Devices, Inc. (a) (c)		2,543		86,411
EnerSys (a) (c)		3,029		48,464
ENGlobal Corp. (a) (c)		1,050		6,751
Ennis, Inc. (c)		1,650		40,359
Ferro Corp. (c)		2,861		59,194
First Acceptance Corp. (a) (c)		1,056		11,320
Georgia Gulf Corp.		2,295		44,316
Gibraltar Industries, Inc. (c)		1,564		36,770
Glatfelter (c)		2,978		46,159
Gold Kist, Inc. (a)		3,330		69,997
Goodman Global, Inc. (a)		1,535		26,402
GrafTech International Ltd. (a) (c)		6,620		45,810
Granite Construction, Inc.		2,322		116,843
Graphic Packaging Corp. (a)		5,086		22,022
Greif, Inc.		1,073		127,043
Griffon Corp. (a)		1,996		50,898
HB Fuller Co.		3,945		101,860
Hecla Mining Co. (a) (c)		8,001		61,288
Hercules, Inc. (a) (c)		7,619		147,123
Hexcel Corp. (a) (c)		6,259		108,969
Housevalues, Inc. (a)		936		5,270
Infrasource Services, Inc. (a)		1,738		37,836
Innophos Holdings, Inc. (a) (c)		527		7,736

	SHARES		VALUE
Materials - 8.7% (Continued)
Innospec, Inc. (c)		779	$	36,262
Insituform Technologies, Inc. (a) (c)		1,741		45,022
Insteel Industries, Inc. (c)		908		16,153
Integrated Electrical Services, Inc. (a) (c)		998		17,754
Interface, Inc. (a)		3,193		45,404
Interline Brands, Inc. (a)		1,766		39,682
Jacuzzi Brands, Inc. (a)		5,218		64,860
Kaydon Corp. (c)		1,830		72,724
Koppers Holdings, Inc.		668		17,415
Kronos Worldwide, Inc.		194		6,317
The Lamson & Sessions Co. (a) (c)		904		21,931
Layne Christensen Co. (a) (c)		716		23,506
LB Foster Co. - Class A (a) (c)		665		17,230
Lone Star Technologies (a)		2,061		99,773
Longview Fibre Co.		4,412		96,843
LSI Industries, Inc.		1,341		26,619
MacDermid, Inc.		1,971		67,211
Medis Technologies Ltd. (a) (c)		1,339		23,339
Mercer International, Inc. (a) (c)		1,856		22,031
Metal Management, Inc. (c)		1,697		64,231
MGP Ingredients, Inc. (c)		622		14,063
Minerals Technologies, Inc.		1,281		75,310
Mobile Mini, Inc. (a) (c)		2,363		63,659
Mueller Industries, Inc.		2,471		78,331
Mueller Water Products, Inc. - Class A (c)		7,332		109,027
Myers Industries, Inc.		1,712		26,810
NCI Building Systems, Inc. (a)		1,298		67,172
Neenah Paper, Inc.		923		32,600
NewMarket Corp.		1,061		62,652
NL Industries		442		4,570
NN, Inc. (c)		1,060		13,176
Nuco2, Inc. (a) (c)		1,011		24,860
Olin Corp.		4,848		80,089
Olympic Steel, Inc. (c)		545		12,115
OM Group, Inc. (a)		1,965		88,975
Omnova Solutions, Inc. (a)		2,698		12,357
Oregon Steel Mills, Inc. (a)		2,396		149,534
Perini Corp. (a) (c)		1,457		44,846
Pioneer Companies, Inc. (a)		734		21,036
PolyOne Corp. (a) (c)		6,207		46,553
Potlatch Corp. (c)		2,591		113,538
PW Eagle, Inc. (c)		685		23,633
Quanex Corp.		2,530		87,513
Rock-Tenn Co.		2,142		58,070
Rockwood Holdings, Inc. (a) (c)		2,292		57,896
Rogers Corp. (a)		1,129		66,780
Royal Gold, Inc. (c)		1,301		46,810
RTI International Metals, Inc. (a) (c)		1,526		119,364
Ryerson Tull, Inc. (c)		1,747		43,832
Schnitzer Steel Industries, Inc. (c)		1,419		56,334
Schulman A, Inc.		1,987		44,211
Shiloh Industries, Inc. (a) (c)		314		5,950
Silgan Holdings, Inc.		1,561		68,559
Simpson Manufacturing Co., Inc. (c)		2,482		78,555
Spartech Corp.		2,090		54,800
The Standard Register Co.		1,196		14,352
Steel Technologies, Inc. (c)		765		13,426

The accompanying notes are an integral part of the financial statements.

71

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

	SHARES		VALUE
Materials - 8.7% (Continued)
Stepan Co.		412	$	13,048
Sterling Construction Co. (a) (c)		566		12,316
Stillwater Mining Co. (a) (c)		2,767		34,560
Superior Essex, Inc. (a)		1,311		43,591
Symyx Technologies, Inc. (a)		2,261		48,815
Tejon Ranch Co. (a) (c)		710		39,646
Terra Industries, Inc. (a) (c)		6,394		76,600
Texas Industries, Inc. (c)		1,468		94,290
Tredegar Corp. (c)		2,221		50,217
Trex Co, Inc. (a) (c)		749		17,145
Tronox, Inc. (c)		2,768		43,707
UAP Holding Corp.		3,316		83,497
Universal Forest Products, Inc. (c)		1,123		52,354
US Concrete, Inc. (a)		2,176		15,493
USEC, Inc. (a) (c)		5,831		74,170
Valley National Gases, Inc.		158		4,179
Valmont Industries, Inc.		1,211		67,198
Washington Group International, Inc. (a)		1,940		115,993
Watsco, Inc. (c)		1,815		85,595
Wausau Paper Corp. (c)		3,009		45,105
WCI Communities, Inc. (a) (c)		2,167		41,563
WD-40 Co. (c)		1,040		36,265
Wheeling-Pittsburgh Corp. (a) (c)		722		13,523
Worthington Industries (c)		4,847		85,889
WR Grace & Co. (a)		4,550		90,090
Xerium Technologies, Inc. (c)		1,284		12,570
Zoltek Companies, Inc. (a) (c)		1,095		21,539
				8,351,159
Other - 0.2%
Kaman Corp.		1,614		36,138
Lancaster Colony Corp.		1,675		74,219
Sequa Corp. (a)		450		51,777
Star Maritime Acquisition Corp. (a)		1,221		11,978
				174,112
Technology - 12.7%
@Road, Inc. (a)		4,125		30,112
3Com Corp. (a)		26,289		108,048
3D Systems Corp. (a) (c)		1,032		16,471
Acacia Research - Acacia Technologies (a)		1,814		24,271
Access Integrated Technologies, Inc. - Class A (a) (c)		875		7,630
Acme Packet, Inc. (a)		871		17,977
Actel Corp. (a)		1,738		31,562
Actuate Corp. (a)		3,786		22,489
Adaptec, Inc. (a) (c)		7,659		35,691
ADTRAN, Inc.		4,280		97,156
Advanced Analogic Technologies, Inc. (a) (c)		2,395		12,909
Aeroflex, Inc. (a)		5,048		59,163
Agile Software Corp. (a)		3,818		23,481
Agilysys, Inc.		1,981		33,162
Altiris, Inc. (a) (c)		1,569		39,821
American Reprographics Co. (a) (c)		1,701		56,660
American Science & Engineering, Inc. (a) (c)		611		36,361
AMIS Holdings, Inc. (a)		2,850		30,125
Amkor Technology, Inc. (a)		6,855		64,026
Anadigics, Inc. (a) (c)		3,073		27,227
Anaren, Inc. (a)		1,154		20,495

	SHARES		VALUE
Technology - 12.7% (Continued)
Anixter International, Inc. (a) (c)		2,215	$	120,274
Ansoft Corp. (a)		1,070		29,746
Ansys, Inc. (a)		2,146		93,330
Applied Micro Circuits Corp. (a)		20,031		71,310
Ariba, Inc. (a)		4,998		38,685
Art Technology Group, Inc. (a)		7,467		17,398
Aspen Technology, Inc. (a) (c)		3,578		39,430
Atheros Communications, Inc. (a) (c)		3,462		73,810
Audible, Inc. (a) (c)		1,643		13,029
Avanex Corp. (a) (c)		11,017		20,822
Avid Technology, Inc. (a) (c)		2,751		102,502
Avocent Corp. (a)		3,220		108,997
BearingPoint, Inc. (a) (c)		12,508		98,438
Bel Fuse, Inc. (c)		716		24,910
Benchmark Electronics, Inc. (a) (c)		4,310		104,992
Black Box Corp. (c)		1,173		49,254
Blackbaud, Inc.		2,844		73,944
Blackboard, Inc. (a) (c)		1,806		54,252
Blue Coat Systems, Inc. (a) (c)		971		23,255
Bookham, Inc. (a) (c)		3,898		15,865
Borland Software Corp. (a) (c)		5,175		28,152
Bottomline Technologies, Inc. (a) (c)		1,377		15,767
Broadwing Corp. (a)		5,109		79,803
Brocade Communications Systems, Inc. (a) (c)		18,332		150,506
CACI International, Inc. - Class A (a)		1,990		112,435
Carrier Access Corp. (a) (c)		1,354		8,882
Cbeyond Communications, Inc. (a)		1,072		32,792
Checkpoint Systems, Inc. (a) (c)		2,625		53,025
Chordiant Software, Inc. (a)		5,294		17,523
Ciber, Inc. (a) (c)		3,656		24,788
Cirrus Logic, Inc. (a) (c)		5,860		40,317
Cogent Communications Group, Inc. (a)		1,366		22,157
Coherent, Inc. (a)		2,002		63,203
CommScope, Inc. (a)		3,893		118,659
Commvault Systems, Inc. (a) (c)		837		16,748
COMSYS IT Partners, Inc. (a)		1,102		22,271
Comtech Group, Inc. (a) (c)		952		17,317
Comtech Telecommunications (a) (c)		1,528		58,171
Concur Technologies, Inc. (a) (c)		2,156		34,582
Conexant Systems, Inc. (a) (c)		32,208		65,704
Consolidated Communications Holdings, Inc. (c)		1,517		31,705
Convera Corp. - Class A (a) (c)		1,831		8,404
Covansys Corp. (a)		2,096		48,103
CPI International, Inc. (a) (c)		460		6,900
CSG Systems International (a) (c)		3,144		84,039
Cubic Corp.		970		21,049
Daktronics, Inc. (c)		2,526		93,083
DealerTrack Holdings Inc. (a)		692		20,359
Dendrite International, Inc. (a) (c)		2,759		29,549
Digi International, Inc. (a)		1,664		22,947
Digital River, Inc. (a) (c)		2,647		147,676
Digitas, Inc. (a)		6,057		81,224
Diodes, Inc. (a) (c)		1,287		45,663
Ditech Networks, Inc. (a)		2,076		14,366
DivX, Inc. (a)		605		13,957
DSP Group, Inc. (a)		2,031		44,073
Eagle Test Systems, Inc. (a)		477		6,955

The accompanying notes are an integral part of the financial statements.

72

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Technology - 12.7% (Continued)
Echelon Corp. (a) (c)		2,086	$	16,688
eCollege.com, Inc. (a) (c)		1,213		18,983
Edo Corp. (c)		1,114		26,446
Electronics for Imaging (a) (c)		3,880		103,130
Emageon, Inc. (a) (c)		1,364		20,951
EMS Technologies, Inc. (a)		987		19,770
Emulex Corp. (a)		5,658		110,388
Epicor Software Corp. (a) (c)		3,680		49,717
EPIQ Systems, Inc. (a) (c)		997		16,919
Equinix, Inc. (a) (c)		1,863		140,880
Essex Corp. (a) (c)		1,295		30,963
Exar Corp. (a)		2,316		30,108
Excel Technology, Inc. (a)		752		19,244
ExlService Holdings, Inc. (a)		383		8,058
Extreme Networks, Inc. (a)		8,010		33,562
FalconStor Software, Inc. (a) (c)		2,411		20,855
Finisar Corp. (a) (c)		15,302		49,425
Flir Systems, Inc. (a) (c)		4,634		147,500
Formfactor, Inc. (a)		2,982		111,079
Foundry Networks, Inc. (a) (c)		9,771		146,370
Gartner, Inc. (a) (c)		3,809		75,380
Gateway, Inc. (a) (c)		19,083		38,357
Genesis Microchip, Inc. (a)		2,379		24,123
Gerber Scientific, Inc. (a) (c)		1,470		18,463
Harmonic, Inc. (a) (c)		4,970		36,132
Heartland Payment Systems, Inc. (c)		907		25,623
Herley Industries, Inc. (a)		973		15,753
Hittite Microwave Corp. (a) (c)		846		27,343
Hutchinson Technology, Inc. (a) (c)		1,636		38,561
Hyperion Solutions Corp. (a)		3,972		142,754
i2 Technologies, Inc. (a) (c)		923		21,063
ID Systems, Inc. (a)		721		13,569
iGate Corp. (a)		1,482		10,196
II-VI, Inc. (a)		1,496		41,798
Ikanos Communications (a) (c)		1,337		11,619
Imation Corp. (c)		2,343		108,785
Infocrossing, Inc. (a)		1,377		22,445
Informatica Corp. (a) (c)		5,780		70,574
Innovative Solutions & Support, Inc. (a) (c)		833		14,186
InPhonic, Inc. (a) (c)		1,603		17,777
Integral Systems, Inc. (c)		713		16,520
Intermec, Inc. (a) (c)		3,376		81,936
Internap Network Services Corp. (a) (c)		1,991		39,561
Internet Capital Group, Inc. (a)		2,628		26,963
Inter-Tel, Inc. (c)		1,412		31,290
InterVoice, Inc. (a) (c)		2,584		19,793
Interwoven, Inc. (a) (c)		2,864		42,015
Ionatron, Inc. (a)		2,047		8,393
Ixia (a)		2,793		26,813
IXYS Corp. (a) (c)		1,833		16,314
j2 Global Communications, Inc. (a) (c)		3,330		90,742
JDA Software Group, Inc. (a) (c)		1,882		25,915
Jupitermedia Corp. (a) (c)		1,453		11,508
Kanbay International, Inc. (a)		2,159		62,114
Keane, Inc. (a) (c)		2,938		34,992
Kemet Corp. (a) (c)		5,814		42,442
Komag, Inc. (a) (c)		1,992		75,457
Kopin Corp. (a) (c)		4,582		16,358
L-1 Identity Solutions, Inc. (a) (c)		4,340		65,664

	SHARES		VALUE
Technology - 12.7% (Continued)
Lattice Semiconductor Corp. (a)		7,668	$	49,689
Lawson Software, Inc. (a) (c)		8,348		61,692
Lionbridge Technologies (a)		4,005		25,792
LoopNet, Inc. (a) (c)		148		2,217
Loral Space & Communications, Inc. (a) (c)		741		30,174
Macrovision Corp. (a)		3,466		97,949
Magma Design Automation, Inc. (a) (c)		2,379		21,244
Manhattan Associates, Inc. (a)		1,843		55,437
Mantech International Corp. - Class A (a)		1,173		43,202
MapInfo Corp. (a) (c)		1,426		18,609
Maxwell Technologies, Inc. (a) (c)		935		13,043
McData Corp. (a)		10,342		57,398
Mentor Graphics Corp. (a)		5,380		97,001
Mercury Computer Systems, Inc. (a) (c)		1,307		17,462
Merge Technologies, Inc. (a) (c)		1,379		9,046
Methode Electronics, Inc.		2,507		27,151
Micrel, Inc. (a) (c)		4,869		52,488
MICRO Systems, Inc. (a)		2,608		137,442
Microsemi Corp. (a) (c)		4,739		93,121
MicroStrategy, Inc. (a)		654		74,563
Microtune, Inc. (a) (c)		3,551		16,690
Mindspeed Technologies, Inc. (a) (c)		7,381		14,098
MIPS Technologies, Inc. (a) (c)		2,918		24,219
Mobility Electronics, Inc. (a) (c)		1,881		6,301
Monolithic Power Systems, Inc. (a) (c)		1,468		16,309
MoSys, Inc. (a)		1,469		13,588
Move, Inc. (a) (c)		6,741		37,143
MRV Communications, Inc. (a) (c)		8,408		29,764
Multi-Fineline Electronix, Inc. (a)		556		11,281
Neoware Systems, Inc. (a) (c)		1,290		17,041
Ness Technologies, Inc. (a)		1,787		25,483
Netgear, Inc. (a) (c)		2,218		58,223
Netlogic Microsystems, Inc. (a) (c)		1,037		22,493
Netscout Systems, Inc. (a)		1,741		14,450
Newport Corp. (a)		2,647		55,455
Nextest Systems Corp. (a) (c)		392		4,418
Novatel Wireless, Inc. (a)		1,882		18,199
Nuance Communications, Inc. (a) (c)		8,475		97,123
Omniture, Inc. (a)		906		12,756
Omnivision Technologies, Inc. (a) (c)		3,567		48,690
ON Semiconductor Corp. (a) (c)		10,201		77,222
Online Resources Corp. (a) (c)		1,511		15,427
Open Solutions, Inc. (a)		1,359		51,153
Openwave Systems, Inc. (a) (c)		6,332		58,444
Oplink Communications, Inc. (a)		1,095		22,513
Opnet Technologies, Inc. (a) (c)		840		12,138
Opsware, Inc. (a) (c)		5,482		48,351
Optical Communication Products, Inc. (a) (c)		1,343		2,203
Optium Corp. (a)		398		9,926
Orbcomm, Inc. (a) (c)		606		5,345
OSI Systems, Inc. (a) (c)		938		19,632
Packeteer, Inc. (a) (c)		2,331		31,702
Palm, Inc. (a) (c)		6,145		86,583
Parametric Technology Corp. (a) (c)		7,465		134,519
Park Electrochemical Corp. (c)		1,353		34,704
PDF Solutions, Inc. (a)		1,415		20,447
Pegasystems, Inc. (c)		962		9,495
Pericom Semiconductor Corp. (a)		1,715		19,671

The accompanying notes are an integral part of the financial statements.

73

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

	SHARES		VALUE
Technology - 12.7% (Continued)
Perot Systems Corp. (a) (c)		5,799	$	95,046
Plantronics, Inc. (c)		3,185		67,522
Plexus Corp. (a) (c)		3,065		73,192
PLX Technology, Inc. (a) (c)		1,677		21,868
PortalPlayer, Inc. (a)		1,608		21,628
Progress Software Corp. (a) (c)		2,754		76,919
QAD, Inc. (c)		1,023		8,583
Quantum Corp. (a) (c)		14,100		32,712
Quest Software, Inc. (a) (c)		4,493		65,822
Rackable Systems, Inc. (a) (c)		1,803		55,839
Radiant Systems, Inc. (a)		1,750		18,270
Radisys Corp. (a)		1,367		22,788
RealNetworks, Inc. (a)		7,179		78,538
Redback Networks, Inc. (a) (c)		4,231		105,521
RF Micro Devices, Inc. (a) (c)		12,807		86,960
RightNow Technologies, Inc. (a) (c)		978		16,841
Safeguard Scientifics, Inc. (a) (c)		8,092		19,583
SafeNet, Inc. (a) (c)		1,749		41,871
Sapient Corp. (a) (c)		5,473		30,047
SAVVIS, Inc. (a) (c)		2,190		78,205
Scansource, Inc. (a) (c)		1,720		52,288
Secure Computing Corp. (a) (c)		3,166		20,769
SI International, Inc. (a) (c)		859		27,849
Sigma Designs, Inc. (a)		1,482		37,717
Silicon Image, Inc. (a)		5,460		69,451
Silicon Storage Technology, Inc. (a) (c)		6,076		27,403
Sirenza Microdevices, Inc. (a) (c)		1,618		12,717
Sirf Technology Holdings, Inc. (a) (c)		3,444		87,891
Skyworks Solutions, Inc. (a)		10,749		76,103
Smith Micro Software, Inc. (a) (c)		1,309		18,575
SonicWALL, Inc. (a)		4,325		36,416
Sonus Networks, Inc. (a)		16,921		111,509
SPSS, Inc. (a) (c)		1,301		39,121
SRA International, Inc. - Class A (a)		2,495		66,716
Staktek Holdings, Inc. (a) (c)		777		4,002
Standard Microsystems Corp. (a) (c)		1,433		40,095
Stratasys, Inc. (a) (c)		579		18,186
Stratex Networks, Inc. (a) (c)		6,474		31,269
Sunpower Corp. (a) (c)		667		24,792
Supertex, Inc. (a)		781		30,654
Sybase, Inc. (a) (c)		6,031		148,966
Sycamore Networks, Inc. (a)		12,286		46,195
SYKES Enterprises, Inc. (a)		1,958		34,539
Synaptics, Inc. (a) (c)		1,629		48,365
Synchronoss Technologies, Inc. (a) (c)		557		7,642
Syniverse Holdings, Inc. (a) (c)		1,538		23,055
SYNNEX Corp. (a)		813		17,837
Syntel, Inc.		566		15,169
TALX Corp. (c)		2,089		57,343
Techwell, Inc. (a)		380		6,103
Tekelec (a)		3,871		57,407
Terremark Worldwide, Inc. (a) (c)		2,632		17,687
Tessera Technologies, Inc. (a)		3,001		121,060
TIBCO Software, Inc. (a)		14,107		133,170
Transaction Systems Architects, Inc. (a)		2,506		81,620
Transmeta Corp. (a) (c)		13,216		14,670
Transwitch Corp. (a) (c)		8,518		11,925
Trident Microsystems, Inc. (a) (c)		3,828		69,593
Triquint Semiconductor, Inc. (a) (c)		9,360		42,120

	SHARES		VALUE
Technology - 12.7% (Continued)
Trizetto Group (a)		2,878	$	52,869
TTM Technologies, Inc. (a)		2,800		31,724
TurboChef Technologies, Inc. (a) (c)		908		15,454
Tyler Technologies, Inc. (a)		2,629		36,964
Ulticom, Inc. (a) (c)		807		7,739
Ultimate Software Group, Inc. (a) (c)		1,564		36,379
Universal Display Corp. (a) (c)		1,554		23,326
UTStarcom, Inc. (a) (c)		8,105		70,919
VA Software Corp. (a) (c)		4,180		21,025
Varian, Inc. (a) (c)		2,002		89,670
VASCO Data Security International, Inc. (a) (c)		1,666		19,742
Verint Systems, Inc. (a) (c)		818		28,041
Viasat, Inc. (a) (c)		1,485		44,268
Vignette Corp. (a)		1,994		34,038
Virage Logic Corp. (a) (c)		1,041		9,671
Volterra Semiconductor Corp. (a)		1,255		18,825
Vonage Holdings Corp. (a) (c)		2,039		14,151
WebEx Communications, Inc. (a)		2,725		95,075
webMethods, Inc. (a)		3,641		26,798
Websense, Inc. (a) (c)		3,217		73,444
Wind River Systems, Inc. (a)		5,056		51,824
Witness Systems, Inc. (a)		2,245		39,355
Zhone Technologies, Inc. (a)		7,480		9,799
Zoran Corp. (a)		3,284		47,881
				12,194,905
Utilities - 4.0%
Alaska Communications Systems Group, Inc.		2,733		41,514
Allete, Inc.		1,646		76,605
American States Water Co. (c)		1,047		40,435
Aquila, Inc. (a)		25,052		117,744
Atlantic Tele-Network, Inc. (c)		348		10,196
Avista Corp.		3,281		83,042
Black Hills Corp. (c)		2,228		82,302
California Water Service Group (c)		1,078		43,551
Cascade Natural Gas Corp. (c)		736		19,077
Centennial Communications Corp. (c)		1,430		10,282
CH Energy Group, Inc.		986		52,061
Cincinnati Bell, Inc. (a)		16,580		75,771
Cleco Corp.		3,789		95,597
Commonwealth Telephone Enterprises, Inc.		1,435		60,069
CT Communications, Inc. (c)		1,289		29,544
Dobson Communications Corp. (a) (c)		9,952		86,682
Duquesne Light Holdings, Inc. (c)		5,842		115,964
El Paso Electric Co. (a) (c)		3,245		79,081
The Empire District Electric Co. (c)		1,951		48,170
EnergySouth, Inc. (c)		374		14,997
Eschelon Telecom, Inc. (a)		608		12,045
Fairpoint Communications, Inc. (c)		1,759		33,333
FiberTower Corp. (a) (c)		8,194		48,181
General Communication (a)		3,603		56,675
Globalstar, Inc. (a) (c)		1,208		16,803
Golden Telecom, Inc. (c)		1,464		68,574
Houston Wire & Cable Co. (a) (c)		578		12,080
Idacorp, Inc.		2,869		110,887
IDT Corp. (a) (c)		3,504		45,832
Iowa Telecommunications Services, Inc. (c)		2,046		40,327
iPCS, Inc. (a) (c)		1,088		60,232
ITC Holdings Corp. (c)		956		38,144

The accompanying notes are an integral part of the financial statements.

74

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Utilities - 4.0% (Continued)
The Laclede Group, Inc.		1,430	$	50,093
Mediacom Communications Corp. (a)		3,848		30,938
MGE Energy, Inc. (c)		1,371		50,151
New Jersey Resources Corp. (c)		1,780		86,472
Nicor, Inc. (c)		2,976		139,277
North Pittsburgh Systems, Inc. (c)		937		22,619
Northwest Natural Gas Co. (c)		1,791		76,010
Northwestern Corp.		2,379		84,169
Ntelos Holdings Corp. (a) (c)		1,011		18,077
Ormat Technologies, Inc. (c)		527		19,404
Otter Tail Corp. (c)		1,890		58,892
Peoples Energy Corp.		2,576		114,812
Piedmont Natural Gas Co. (c)		5,119		136,933
PNM Resources, Inc. (c)		5,001		155,531
Portland General Electric Co. (c)		1,751		47,715
Premiere Global Services, Inc. (a) (c)		4,848		45,765
RCN Corp. (a)		1,897		57,195
Shenandoah Telecom Co. (c)		520		24,445
SJW Corp. (c)		961		37,248
South Jersey Industries, Inc. (c)		1,955		65,317
Southwest Gas Corp. (c)		2,686		103,062
Southwest Water Co.		1,469		20,213
SureWest Communications (c)		911		25,089
Time Warner Telecom, Inc. (a)		9,299		185,329
UIL Holdings Corp. (c)		1,645		69,403
Unisource Energy Corp. (c)		2,351		85,882
USA Mobility, Inc.		1,748		39,103
Westar Energy, Inc. (c)		5,843		151,684
WGL Holdings, Inc. (c)		3,268		106,472
				3,833,097
TOTAL COMMON STOCKS
(Cost $73,685,869)				89,817,158

	SHARES		VALUE
UNIT INVESTMENT TRUSTS - 2.1%
iShares Russell 2000 Index Fund (c)		25,400	$	1,982,470
TOTAL UNIT INVESTMENT TRUSTS
(Cost $1,998,472)				1,982,470
RIGHTS - 0.0%
Affordable Residential Communities
Issued by Affordable Residential Communities,
Exp. 1/23/2007, Strike $8 (a)(e)		2,225		6,274
Revlon, Inc.
Issued by Revlon, Inc., Exp. 1/19/2007, Strike $1.05 (a)		10,578		529
TOTAL RIGHTS
(Cost $2,781)				6,803
		PRINCIPAL
		AMOUNT		VALUE
SHORT TERM INVESTMENTS (f)- 4.9%
U.S. Treasury Bills - 3.0%
4.840%, 03/15/2007	$	2,900,000	$	2,872,346
		SHARES		VALUE
Money Market Funds - 1.9%
Northern Institutional Diversified Assets Portfolio		1,833,246	$	1,833,246
TOTAL SHORT TERM INVESTMENTS
(Cost $4,704,990)				4,705,592
Total Investments (Cost $80,392,112) (b) - 100.6%				96,512,023
Northern Institutional Diversified Assets Portfolio (d) - 51.8%				49,690,379
Liabilities in Excess of Other Assets - (52.4)%				(50,236,208	)
TOTAL NET ASSETS - 100.0%			$	95,966,194

(a)	Non income producing security.
(b)	For federal income tax purpose, cost is $80,581,635 and gross unrealized appreciation and depreciation of securities as of December 31, 2006 was $21,990,678 and $(6,060,290) respectively, with a net appreciation / (depreciation) of $15,930,388.
(c)	All or portion of the security is out on loan.
(d)	This security was purchased with cash collateral held from securities lending.  The market value of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted is $48,229,242, $49,690,379, and $578,241, respectively.
(e)	Valued in good faith under procedures adopted by the Board of Directors.
(f)	Securities and other assets with an aggregate value of $4,530,930 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of December 31, 2006:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
Russell 2000 Index (03/07)	2	$(1,516)
Russell 2000 Index Mini (03/07)	47	(2,767)

The accompanying notes are an integral part of the financial statements.

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Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL STATEMENTS	RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS
Investments in securities, at value	$	96,512,023
Collateral for securities loaned,
at fair value		49,690,379
Cash		162
Receivables:
Shares sold		49,500
Interest and dividends		109,511
Prepaid expenses and other		3,162
		146,364,737
LIABILITIES
Payables:
Payable upon return of securities loaned		49,690,379
Investment securities purchased		103,617
Shares redeemed		473,693
Variation margin		34,770
Advisory fees		33,685
Professional fees		15,327
Fund accounting fees		14,002
Custodian fees		10,820
Administration fees		8,197
Royalty fees		5,000
12b-1 fees		479
Directors’ fees		21
Other accrued expenses		8,553
		50,398,543
NET ASSETS*
Paid-in capital		72,394,978
Accumulated undistributed net investment
income / (loss)		529,373
Accumulated net realized gain / (loss)
on investments and futures contracts		6,926,215
Net unrealized appreciation / (depreciation)
on investments and futures contracts		16,115,628
	$	95,966,194
Investments at cost	$	80,392,112
Shares authorized - Class I ($.10 par value)		20,000,000
Shares authorized - Class F ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class Net Assets		Outstanding
Class I	$95,694,479	1,289,914	$74.19
Class F	$ 271,715	3,671	$74.02

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2006
	Percentage of ordinary distributions designated as
	qualified dividend income		83.24%
	Dividends received deduction for corporate shareholders		81.99%
	Undistributed ordinary income	$	1,460,763
	Undistributed long-term gains	$	6,180,065
	Unrealized appreciation	$	15,930,388

STATEMENT OF OPERATIONS
For the year ended December 31, 2006
INVESTMENT INCOME
Interest	$	160,138
Dividends		1,106,075
Foreign dividend taxes withheld		(30	)
Other income		36,973
		1,303,156
EXPENSES
Advisory fees		305,280
Administration fees		87,223
Fund accounting fees		48,970
Custodian fees		47,556
Professional fees		27,279
Transfer agent fees		19,113
Directors’ fees		11,303
Royalty fee		9,368
Shareholder reporting fees		7,167
12b-1 fees - Class F		476
Other expenses		7,292
		571,027
NET INVESTMENT INCOME / (LOSS)		732,129
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		6,373,766
Net realized gain / (loss) on futures contracts		585,128
		6,958,894
Net change in unrealized appreciation /
(depreciation) on investments
and futures contracts		6,109,042
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		13,067,936
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	13,800,065

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory	Administration	Expense
Fee	Fee	Limit
0.35%	0.10%	0.75%

The accompanying notes are an integral part of the financial statements.

76

Summit Mutual Funds, Inc. - Pinnacle Series
RUSSELL 2000 SMALL CAP INDEX PORTFOLIO	FINANCIAL STATEMENTS

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2006			2005(1)
OPERATIONS
Net investment income / (loss)	$	732,129		$	479,266
Net realized gain / (loss) on investments and futures		6,958,894			2,726,979
Net change in unrealized appreciation / (depreciation) on investments and futures contracts		6,109,042			(375,506	)
		13,800,065			2,830,739
DISTRIBUTIONS TO SHAREHOLDERS*
Class I
Net investment income		(521,036	)		(335,674	)
Net realized gain on investments		(2,571,112	)		(677,888	)
Class F
Net investment income		(153	)		—
Net realized gain on investments		(792	)		—
		(3,093,093	)		(1,013,562	)
FUND SHARE TRANSACTIONS
Class I
Proceeds from shares sold		21,481,354			19,532,734
Reinvestment of distributions		3,092,148			1,013,562
Payments for shares redeemed		(15,380,526	)		(15,318,613	)
		9,192,976			5,227,683
Class F
Proceeds from shares sold		330,479			5,002
Reinvestment of distributions		945			—
Payments for shares redeemed		(85,352	)		(2	)
		246,072			5,000
NET INCREASE / (DECREASE) IN NET ASSETS		20,146,020			7,049,860
NET ASSETS
Beginning of period		75,820,174			68,770,314
End of period	$	95,966,194		$	75,820,174
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	529,373		$	452,990
FUND SHARE TRANSACTIONS Class I
Sold		308,422			313,268
Reinvestment of distributions		44,543			16,964
Redeemed		(221,188	)		(248,011	)
Net increase / (decrease) from fund share transactions		131,777			82,221
FUND SHARE TRANSACTIONS Class F
Sold		4,756			78
Reinvestment of distributions		14			—
Redeemed		(1,177	)		—
Net increase / (decrease) from fund share transactions		3,593			78
TOTAL COST OF PURCHASES OF:
Common Stocks	$	28,192,639		$	19,618,076
	$	28,192,639		$	19,618,076
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	19,976,137		$	16,360,578
	$	19,976,137		$	16,360,578
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	671,425		$	710,279
Long-term capital gains		2,421,668			303,283
	$	3,093,093		$	1,013,562
(1)  For the period from October 4, 2005 to December 31, 2005 for Class F.

The accompanying notes are an integral part of the financial statements.

77

Summit Mutual Funds, Inc. - Pinnacle Series

EAFE INTERNATIONAL INDEX PORTFOLIO

Summit EAFE International Index Portfolio - Average Annual Total Return
1-Year	3-Year	Since Inception
25.56%	18.59%	20.97%

Past performance is not predictive of future results. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower.

Portfolio Data
Manager:	Theodore D. Miller on
	behalf of subadviser
	World Asset
	Management, Inc.
	A wholly owned
	subsidiary of Comerica, Inc.
Inception Date:	November 12, 2002
Total Net Assets:	$58.75 Million
Number of Equity Holdings:	852
Median Cap Size:	$4,052 (in millions)
Average Price-to-book Ratio:	2.43 x
Dividend Yield:	2.42%

Top 10 Equity Holdings
	(% of net assets)
BP Plc	1.68%
HSBC Holdings Plc	1.57%
Toyota Motor Corp.	1.44%
Total SA	1.20%
GlaxoSmithKline Plc	1.16%
Nestle SA	1.08%
Vodafone Group Plc	1.08%
Novartis AG	1.02%
Royal Dutch Shell Plc - Class A	1.01%

Sector Allocations

78

Summit Mutual Funds, Inc. - Pinnacle Series   

EAFE INTERNATIONAL INDEX PORTFOLIO   

Objective - Seeks investment results that correspond to the total return performance of common stocks as represented by the Morgan Stanley Capital International (“MSCI”) EAFE Index (the “Index”). The Index emphasizes the stock of companies in major markets in Europe, Australasia, and the Far East.

Strategy - The Summit Pinnacle EAFE International Index Portfolio (the “Portfolio”) will invest primarily in common stocks of the companies that compose the Index.

Manager’s Comments:

For the year ended December 31, 2006, the Summit EAFE International Index Portfolio’s total return was 25.56% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 26.34% “net” total return for the MSCI EAFE Index (in U.S. dollars after the impact of foreign taxes). The difference of 0.78% is referred to as “tracking error.” One component of the difference is attributed to the Portfolio’s operating expenses. These expenses represent the Portfolio’s costs for advisory, administration, accounting, custody and other services as well as the impact of foreign taxes. The remaining difference can be caused by a number of factors, including the timing and size of cash flows into and out of the Portfolio; brokers’ commissions or other trading costs; and holding a sample of the security positions in the Index or holding them in amounts that are different than the weightings in the Index, among others. While an exact replication of the capitalization weighting of securities in the Index is not feasible, the Portfolio’s objectives and strategies call for it to seek investment results that correspond to the total return of the Index.

The EAFE International Index Portfolio is not sponsored, endorsed, sold or promoted by MSCI or any affiliate of MSCI. Neither MSCI nor any other party makes any representation or warranty, express or implied to Summit Mutual Funds, Inc. or any member to the public regarding the advisability of investing in funds generally or in this fund particularly or the ability of the EAFE Index to track general stock market performance.

79

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL HIGHLIGHTS	EAFE INTERNATIONAL INDEX PORTFOLIO

 

FINANCIAL HIGHLIGHTS

														Period from
														November 12,
														2002(1)
	Year Ended December 31,													to December 31,
			2006			2005			2004			2003			2002
Net asset value, beginning of period		$	81.98		$	74.34		$	64.41		$	49.59		$	50.00
INVESTMENT ACTIVITIES:
Net investment income / (loss)			1.46			1.59			1.00(4	)		1.34			0.19
Net realized and unrealized gains / (losses)			18.83			7.59			10.42			14.49			(0.60	)
Total from Investment Activities			20.29			9.18			11.42			15.83			(0.41	)
DISTRIBUTIONS:
Net investment income			(1.63	)		(0.72	)		(0.69	)		(0.19	)		—
Net realized gains			(1.98	)		(0.82	)		(0.80	)		(0.82	)		—
Total Distributions			(3.61	)		(1.54	)		(1.49	)		(1.01	)		—
Net asset value, end of period		$	98.66		$	81.98		$	74.34		$	64.41		$	49.59
Total return			25.56	%		12.57	%		18.02	%		32.79	%		-0.82	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(2)			0.95	%		0.95	%		0.95	%		0.65	%		0.65%(3	)
Ratio of expenses to average net assets - gross			1.29	%		1.50	%		1.69	%		2.46	%		1.99%(3	)
Ratio of net investment income / (loss) to average net assets			1.66	%		1.75	%		1.70	%		2.14	%		2.24%(3	)
Portfolio turnover rate			44.33	%		76.61	%		55.49	%		75.27	%		449.05%(3	)
Net assets, end of period (000’s)		$	58,754		$	44,084		$	50,938		$	16,565		$	22,234

(1)	Commencement of operations.
(2)	Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.
(3)	Annualized.
(4)	Per share amounts are based on average shares outstanding.

The accompanying notes are an integral part of the financial statements.

80

Summit Mutual Funds, Inc. - Pinnacle Series
EAFE INTERNATIONAL INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

DECEMBER 31, 2006
	SHARES		VALUE
COMMON STOCKS - 97.9%
Australia - 5.5%
A.B.C. Learning Centres Ltd.		2,768	$	18,353
AGL Energy Ltd. (a)		2,263		28,902
Alinta Ltd.		2,677		24,981
Alumina Ltd.		5,840		29,226
Amcor Ltd.		4,893		28,002
AMP Ltd.		8,385		66,849
Aristocrat Leisure Ltd.		1,791		22,478
Australia & New Zealand Banking Group Ltd.		7,709		171,660
Australian Stock Exchange Ltd.		999		30,083
AXA Asia Pacifica Holdings Ltd.		4,356		25,066
Babcock & Brown Ltd.		1,243		24,333
BHP Billiton Ltd.		15,953		318,589
Billabong International Ltd.		1,349		18,528
BlueScope Steel Ltd.		3,594		24,454
Boral Ltd.		3,644		21,947
Brambles Ltd. (a)		7,349		74,426
Caltex Australia Ltd.		674		12,236
Centro Properties Group		4,275		30,708
CFS Retail Property Trust		17,242		31,711
Coca-Cola Amatil Ltd.		3,772		23,108
Cochlear Ltd		269		12,315
Coles Myer Ltd.		5,392		59,586
Commonwealth Bank of Australia		5,500		214,813
Computershare Ltd.		2,480		17,422
CSL Ltd.		808		41,692
CSR Ltd.		6,466		19,140
Downer EDI Ltd.		2,049		11,305
Foster’s Group Ltd.		9,728		53,137
Goodman Fielder Ltd.		6,705		11,750
GPT Group		10,199		45,083
Insurance Australia Group Ltd.		7,377		36,976
John Fairfax Holdings Ltd.		5,972		22,769
Lend Lease Corp. Ltd.		2,018		29,373
Macquarie Airports Management Ltd.		4,034		11,463
Macquarie Bank Ltd.		1,178		73,393
Macquarie Goodman Group		6,447		38,676
Macquarie Infrastructure Group		12,379		33,809
Mayne Pharma Ltd.		3,515		11,292
Mirvac Group		5,496		24,251
Multiplex Group		3,714		11,697
National Australia Bank Ltd.		6,867		218,986
Newcrest Mining Ltd.		1,693		35,213
Orica Ltd.		1,490		28,580
Origin Energy Ltd.		4,708		30,733
Paladin Resources Ltd. (a)		2,057		14,451
Qantas Airways Ltd.		5,691		23,449
QBE Insurance Group Ltd.		3,304		75,241
Rinker Group Ltd.		4,423		63,018
Rio Tinto Ltd.		1,339		78,530
Santos Ltd.		3,725		29,021
Sonic Healthcare Ltd.		1,638		19,239
Stockland		7,306		47,751
Suncorp-Metway Ltd.		2,908		46,712
Symbion Health Ltd.		4,115		12,343
TABCORP Holdings Ltd.		3,050		40,567
Tattersall’s Ltd.		5,614		17,327
Telstra Corp.		16,172		52,848

	SHARES		VALUE
Australia - 5.5% (Continued)
Toll Holdings Ltd.		2,269	$	32,722
Transurban Group		4,708		28,318
Wesfarmers Ltd.		1,837		54,434
Westfield Group		6,807		112,781
Westpac Banking Corp.		7,888		150,927
Woodside Petroleum Ltd.		2,326		69,971
Woolworths Ltd.		5,168		97,496
WorleyParsons Ltd.		750		12,598
Zinifex Ltd.		1,979		29,352
				3,228,190
Austria - 0.5%
Boehler-Uddeholm AG		331		23,201
Erste Bank der Oesterreichischen Sparkassen AG		823		63,120
Immoeast Immobilie Anlagen AG (a)		2,856		40,151
Oesterreischeische Elektrizitaetswirtschafts AG		429		22,890
OMV AG		815		46,250
Raiffeisen International Bank-Holding AG		161		24,549
Telekom Austria AG		1,694		45,394
Voestalpine AG		427		24,108
Wienerberger AG		396		23,523
				313,186
Belgium - 1.2%
AGFA-Gevaert NV		684		17,480
Belgacom SA		772		34,007
Delhaize Group		346		28,843
Dexia		2,722		74,558
Fortis		5,164		220,316
Groupe Bruxelles Lambert SA		390		46,874
Inbev		794		52,343
KBC Groep NV		839		102,888
Mobistar SA		199		16,983
Solvay SA		301		46,170
UCB SA		559		38,334
Umicore		136		23,159
				701,955
Denmark - 0.8%
AP Moller - Maersk A/S		5		47,090
Carlsberg A/G		174		17,280
Danisco A/S		316		26,908
Danske Bank A/S		2,228		98,999
DSV A/S		125		22,837
FLSmidth & Co A/S		186		11,821
GN Store Nord A/S		1,186		17,531
Jyske Bank A/S (a)		404		28,679
Novo-Nordisk A/S - Class B		1,126		93,787
Novozymes A/S		266		22,886
Topdanmark A/S (a)		101		16,700
Vestas Wind Systems A/S (a)		814		34,404
William Demant Holding A/S (a)		207		16,783
				455,705
Finland - 1.4%
Amer Sports Oyj		797		17,549
Cargotec Corp. - B Shares		322		17,895
Elisa Corporation		853		23,364
Fortum Oyj		1,915		54,501

The accompanying notes are an integral part of the financial statements.

81

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	EAFE INTERNATIONAL INDEX PORTFOLIO

	SHARES		VALUE
Finland - 1.4% (Continued)
Kesko Oyj - B Shares		447	$	23,614
Kone Oyj		435		24,657
Metso Oyj		579		29,227
Neste Oil Oyj		717		21,797
Nokia Oyj		17,503		357,662
Nokian Renkaat Oyj		547		11,206
Orion Oyj - B Shares (a)		543		11,791
Outokumpu Oyj		474		18,558
Rautaruukki Oyj		442		17,591
Sampo Oyj		1,887		50,516
Stora Enso Oyj		2,847		45,098
Tietoenator Oyj		576		18,583
UPM-Kymmene Oyj		2,486		62,745
Wartsila Oyj - B Shares		328		17,670
YIT Oyj		633		17,506
				841,530
France - 9.4%
Accor SA		970		75,162
Air France-KLM		552		23,237
Air Liquide SA		501		118,976
Alcatel SA		9,993		143,784
Alstom (a)		490		66,429
Atos Origin SA (a)		296		17,556
Axa		7,168		290,202
BNP Paribas SA		3,681		401,603
Bouygues SA		902		57,903
Business Objects SA (a)		454		17,817
Cap Gemini SA		568		35,652
Carrefour SA		2,609		158,217
Casino Guichard Perrachon SA		247		22,954
CNP Assurances		208		23,229
Compagnie de Saint-Gobain		1,412		118,637
Compagnie Generale des Etablissements Michelin - B Shares		618		59,145
Credit Agricole SA		2,622		110,273
Dassault Systemes SA		320		16,981
Essilor International SA		524		56,339
France Telecom SA		7,386		204,259
Gaz de France		889		40,897
Groupe Danone		1,051		159,270
Hermes International		292		36,522
Klepierre		130		24,540
Lafarge SA		662		98,485
Lagardere S.C.A.		583		46,945
L’Oreal SA		1,280		128,245
LVMH Moet Hennessy Louis Vuitton SA		1,088		114,825
M6 Metropole Television		483		17,253
Neopost SA		181		22,734
Pernod-Ricard SA		361		82,917
Peugeot SA		725		48,043
PPR SA		305		45,576
Publicis Groupe		716		30,198
Renault SA		864		103,787
Safran SA		1,081		25,086
Sanofi-Aventis		4,543		419,488
Schneider Electric SA		1,032		114,568
SCOR SA		3,865		11,428
Societe Generale		1,602		271,952
Societe Television Francaise 1		610		22,635

	SHARES		VALUE
France - 9.4% (Continued)
Sodexho Alliance SA		472	$	29,614
Suez SA		4,553		235,779
Technip SA		492		33,772
Thales SA		469		23,390
Thomson		1,188		23,225
Total SA		9,734		702,215
Unibail		239		58,397
Valeo SA		408		16,981
Vallourec SA		182		52,927
Veolia Environnement		1,253		96,595
Vinci SA		959		122,541
Vivendi Universal SA		5,298		207,080
Zodiac SA		270		18,141
				5,504,406
Germany - 7.1%
Adidas AG		1,016		50,736
Allianz AG		1,917		392,004
Altana AG		372		23,006
BASF AG		2,166		211,839
Bayer AG		3,184		171,609
Beiersdorf AG		263		17,077
Bilfinger Berger AG		167		12,226
Celesio AG		533		28,362
Commerzbank AG		2,801		106,302
Continental AG		630		73,358
DaimlerChrysler AG		4,065		251,826
Deutsche Bank AG		2,312		310,017
Deutsche Boerse AG		481		88,720
Deutsche Lufthansa AG		1,255		34,508
Deutsche Post AG		3,616		109,308
Deutsche Postbank AG		409		34,413
Deutsche Telekom AG		12,445		228,184
E.ON AG		2,760		376,319
Fresenius Medical Care AG		279		37,223
Heidelberger Druckmaschien AG		378		17,923
Hochtief AG		243		17,662
Hypo Real Estate Holding AG		651		40,965
Infineon Technologies AG (a)		3,302		46,465
IVG Immobilien AG		400		17,419
Karstadt Quelle AG (a)		392		11,374
Linde AG		503		52,136
MAN AG		603		54,692
Merck KGaA		262		27,229
Metro AG		698		44,402
Muenchener Rueckversicherungs AG		916		158,400
Puma AG Rudolf Dassler Sport		60		23,446
Rheinmetall AG		238		18,043
RWE AG		2,088		230,037
Salzgitter AG		180		23,690
SAP AG		3,940		209,807
Siemens AG		3,803		379,522
Solarworld AG		189		11,863
ThyssenKrupp AG		1,596		75,318
TUI AG		1,080		21,656
Volkswagen AG		1,075		121,981
				4,161,067

The accompanying notes are an integral part of the financial statements.

82

Summit Mutual Funds, Inc. - Pinnacle Series
EAFE INTERNATIONAL INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Greece - 0.6%
Alpha Bank AE		1,804	$	54,527
Coca-Cola Hellenic Bottling Co. SA		607		23,718
EFG Eurobank Ergasias SA		1,282		46,444
Hellenic Telecommunications Organization SA (a)		1,499		45,036
National Bank of Greece SA		1,972		90,849
OPAP SA		1,084		41,898
Piraeus Bank SA		1,112		35,854
				338,326
Hong Kong - 1.7%
Bank of East Asia Ltd.		7,625		43,182
BOC Hong Kong Holdings Ltd.		16,808		45,595
Cheung Kong Holdings Ltd.		8,018		98,701
CLP Holdings Ltd.		8,192		60,558
Esprit Holdings Ltd.		4,889		54,589
Foxconn International Holdings Ltd. (a)		9,501		31,087
Hang Lung Properties Ltd.		12,479		31,284
Hang Seng Bank Ltd.		3,390		46,328
Henderson Land Development Co. Ltd.		6,178		34,550
Hong Kong & China Gas Co. Ltd.		18,020		40,542
Hong Kong Exchanges and Clearing Ltd.		5,060		55,620
HongKong Electric Holdings Ltd.		8,515		41,709
Hopewell Holdings Ltd.		4,685		16,443
Hutchison Telecomunications International Ltd. (a)		7,804		19,665
Hutchison Whampoa Ltd.		10,029		101,924
Kingboard Chemical Holdings Ltd.		2,780		10,919
Li & Fung Ltd.		11,678		36,331
Link REIT		11,167		22,971
Melco International Development Ltd.		3,971		9,414
New World Development Co. Ltd.		12,214		24,590
PCCW Ltd.		27,673		16,828
Shangri-La Asia Ltd.		6,998		18,039
Sun Hung Kai Properties Ltd.		6,624		76,090
Swire Pacific Ltd. - Class A		4,941		53,073
Wharf Holdings Ltd.		8,647		31,961
				1,021,993
Ireland (Republic of) - 0.9%
Allied Irish Banks Plc		3,981		118,240
Bank of Ireland		4,400		101,644
C&C Group Plc		1,414		25,105
CRH Plc		2,340		97,424
DCC Plc		531		18,049
Depfa Bank Plc		1,633		29,230
Elan Corp. Plc (a)		2,062		29,261
Experian Group Ltd. (a)		4,479		52,575
Grafton Group Plc (a)		1,519		25,385
Kerry Group Plc		916		22,889
Kingspan Group		689		18,254
Ryanair Holdings Plc (a)		898		12,364
				550,420
Italy - 3.9%
Alleanza Assicurazioni SpA		2,626		35,046
Assicurazioni Generali SpA		4,262		187,178
Autostrade SpA		1,581		45,475
Banca Intesa SpA		21,788		168,253
Banca Monte dei Paschi di Siena SpA		5,213		33,736
Banca Popolare di Milano Scrl		2,368		41,105

	SHARES		VALUE
Italy - 3.9% (Continued)
Banche Popolari Unite Scrl		2,124	$	58,374
Banco Popolare di Verona e Novara Scrl		2,042		58,628
Capitalia SpA		7,957		75,311
Enel SpA		19,213		198,204
ENI SpA		11,660		392,181
Fiat SpA (a)		2,764		52,832
Finmeccanica SpA		1,698		46,017
Fondiaria - Sai SpA		365		17,461
Lottomatica SpA		555		23,092
Luxottica Group SpA		731		22,464
Mediaset SpA		3,816		45,285
Mediobanca SpA		2,594		61,259
Pirelli & Co.		17,470		17,400
Sanpaolo IMI SpA		5,179		120,323
Seat-Pagine Gialle SpA		27,951		16,659
Snam Rete Gas SpA		6,991		39,659
Telecom Italia SpA - RNC		26,410		67,005
Telecom Italia SpA		46,535		140,671
Unicredito Italiano SpA		34,965		306,472
				2,270,090
Japan - 22.3%
The 77 Bank Ltd.		2,527		16,032
Acom Co. Ltd.		475		15,966
Advantest Corp.		742		42,523
Aeon Co. Ltd.		3,078		66,601
Aeon Credit Service Co. Ltd.		599		11,350
Aiful Corp.		555		15,623
Aisin Seiki Co. Ltd.		1,078		36,143
Ajinomoto Co., Inc.		3,147		41,597
Alps Electric Co. Ltd.		1,123		12,183
Amada Co. Ltd.		1,694		17,950
Aoyama Trading Co.		542		16,259
Asahi Breweries Ltd.		1,933		30,943
Asahi Glass Co. Ltd.		4,504		54,121
Asahi Kasei Corp.		6,082		39,812
Asics Corp.		907		11,387
Astellas Pharma, Inc.		2,441		110,969
The Bank of Fukuoka Ltd.		2,993		21,830
The Bank of Kyoto Ltd.		1,817		16,948
The Bank of Yokohama Ltd.		6,067		47,514
Benesse Corp.		434		16,520
Bridgestone Corp.		2,905		64,811
Canon, Inc.		4,700		264,583
Casio Computer Co. Ltd.		1,224		27,770
Central Japan Railway Co.		7		72,350
The Chiba Bank Ltd.		4,086		34,541
Chiyoda Corp.		858		16,799
Chubu Electric Power Co., Inc.		3,072		91,898
Chugai Pharmaceutical Co. Ltd.		1,386		28,592
Citizen Watch Co. Ltd.		2,220		16,994
Credit Saison Co. Ltd.		815		28,079
CSK Holdings Corp.		410		17,502
Dai Nippon Printing Co. Ltd.		3,500		54,057
Daido Steel Co.		1,733		11,519
Daiichi Sankyo Co. Ltd.		3,359		105,000
Daikin Industries Ltd.		1,208		42,024
Daimaru, Inc.		1,340		18,162

The accompanying notes are an integral part of the financial statements.

83

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	EAFE INTERNATIONAL INDEX PORTFOLIO

	SHARES		VALUE
Japan - 22.3% (Continued)
Dainippon Ink and Chemicals, Inc.		4,220	$	16,454
Dainippon Screen Manufacturing Co. Ltd.		1,302		11,696
Daito Trust Construction Co. Ltd.		355		16,288
Daiwa House Industry Co. Ltd.		2,626		45,677
Daiwa Securities Group, Inc.		6,181		69,339
Denso Corp.		2,349		93,166
Dentsu, Inc.		8		23,461
East Japan Railway Co.		16		106,886
Eisai Co. Ltd.		1,189		65,342
Electric Power Development Co. Ltd.		898		39,541
Elpida Memory, Inc. (a)		460		25,280
Fanuc Ltd.		790		77,802
Fast Retailing Co. Ltd.		250		23,865
Fuji Electric Holdings Co. Ltd.		3,146		17,051
FUJIFILM Holdings Corp.		2,190		89,989
Fujikura Ltd.		1,959		17,235
Fujitsu Ltd.		8,377		65,746
The Furukawa Electric Co.		3,409		21,427
The Gunma Bank Ltd.		2,835		17,033
Hankyu Hanshin Holdings, Inc.		5,686		32,490
Haseko Corp. (a)		3,137		11,229
Hirose Electric Co. Ltd.		200		22,705
Hitachi Chemical Co. Ltd.		617		17,006
Hitachi Construction Machinery Co. Ltd.		460		12,369
Hitachi Ltd.		15,120		94,274
Hokkaido Electric Power Co., Inc.		1,345		34,358
Hokuhoku Financial Group, Inc.		6,200		22,715
Honda Motor Co. Ltd.		7,016		277,091
Hoya Corp.		1,943		75,757
Ibiden Co. Ltd.		686		34,587
Inpex Holdings, Inc. (a)		4		32,873
Isetan Co. Ltd.		1,234		22,294
Ishikawajima-Harima Heavy Industries Co. Ltd.		5,126		17,359
Itochu Techno-Solutions Corp.		199		10,585
Itochu Corp.		6,721		55,178
Japan Real Estate Investment Corp.		3		32,268
Japan Retail Fund Investment Corp.		3		24,453
Japan Steel Works Ltd.		1,483		11,589
Japan Tobacco, Inc.		19		91,803
JFE Holdings, Inc.		2,470		127,231
JGC Corp.		1,010		17,356
The Joyo Bank Ltd.		4,007		22,122
JS Group Corp.		1,434		30,185
JSR Corp.		862		22,310
JTEKT Corp.		1,113		23,615
Kajima Corp.		5,240		22,985
Kamigumi Co. Ltd		2,727		22,319
Kaneka Corp.		1,861		16,952
The Kansai Electric Power Co. Inc.		3,505		94,543
Kao Corp.		2,297		61,958
Kawasaki Heavy Industries Ltd.		6,143		23,074
Kawasaki Kisen Kaisha Ltd.		3,079		24,088
KDDI Corp.		11		74,593
Keio Corp.		4,344		28,107
Keyence Corp.		190		46,959
Kintetsu Corp.		9,383		27,359
Kirin Brewery Co. Ltd.		3,510		55,184
Kobe Steel Ltd.		13,497		46,273

	SHARES		VALUE
Japan - 22.3% (Continued)
Komatsu Ltd.		3,975	$	80,666
Konami Corp.		404		12,221
Konica Minolta Holdings, Inc.		2,270		32,046
Kubota Corp.		5,076		47,004
Kuraray Co. Ltd.		1,980		23,360
Kurita Water Industries Ltd.		772		16,672
Kyocera Corp.		746		70,334
Kyushu Electric Power Co., Inc.		1,984		52,349
Lawson, Inc.		490		17,540
LEOPALACE21 Corp.		691		22,065
Makita Corp.		593		18,188
Marubeni Corp.		7,769		39,431
Marui Co. Ltd.		2,257		26,324
Matsushita Electric Industrial Co. Ltd.		8,889		177,399
Mediceo Paltac Holdings Co. Ltd.		911		17,262
Millea Holdings, Inc.		3,293		116,219
Minebea Co.		1,644		11,494
Mitsubishi Chemical Holdings		5,439		34,278
Mitsubishi Electric Corp.		8,741		79,767
Mitsubishi Estate Co. Ltd.		5,274		136,498
Mitsubishi Gas Chemical Co. Ltd.		1,741		18,214
Mitsubishi Heavy Industries Ltd.		14,524		66,026
Mitsubishi Materials Corp.		5,939		22,308
Mitsubishi Rayon Co. Ltd.		3,303		22,204
Mitsubishi UFJ Securities Co. Ltd.		1,539		17,096
Mitsubishi UFJ Financial Group, Inc.		39		481,744
Mitsubishi Corp.		5,925		111,525
Mitsui & Co. Ltd.		7,175		107,319
Mitsui Chemicals, Inc.		3,006		23,138
Mitsui Engineering & Shipbuilding Co.		3,316		10,784
Mitsui Fudosan Co. Ltd.		3,811		93,029
Mitsui Mining & Smelting Co. Ltd.		3,605		18,055
Mitsui OSK Lines Ltd.		4,768		47,037
Mitsui Sumitomo Insurance Co. Ltd.		5,509		60,272
Mitsui Trust Holdings, Inc.		3,129		35,916
Mitsukoshi Ltd.		2,328		10,896
Mizuho Financial Group, Inc.		43		307,130
Murata Manufacturing Co. Ltd.		926		62,639
Namco Bandai Holdings, Inc.		1,150		16,855
NEC Corp.		9,544		45,633
NGK Insulators Ltd.		1,456		22,488
NGK Spark Plug Co. Ltd.		909		17,110
Nidec Corp.		506		39,118
Nikko Cordial Corp.		4,063		46,603
Nikon Corp.		1,350		29,608
Nintendo Co. Ltd.		448		116,325
Nippon Building Fund, Inc.		3		39,830
Nippon Electric Glass Co. Ltd.		1,078		22,646
Nippon Express Co. Ltd.		4,249		23,244
Nippon Meat Packers, Inc.		1,065		11,634
Nippon Mining Holdings, Inc.		3,963		28,506
Nippon Oil Corp.		6,510		43,544
Nippon Paper Group, Inc.		5		18,865
Nippon Sheet Glass Co. Ltd.		2,316		10,859
Nippon Steel Corp.		27,391		157,434
Nippon Telegraph & Telephone Corp.		22		108,332
Nippon Yusen Kabushiki Kaisha		5,496		40,179
The Nishi-Nippon City Bank Ltd.		3,907		16,809

The accompanying notes are an integral part of the financial statements.

84

Summit Mutual Funds, Inc. - Pinnacle Series
EAFE INTERNATIONAL INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Japan - 22.3% (Continued)
Nissan Chemical Industries, Ltd.		904	$	11,243
Nissan Motor Co. Ltd.		10,094		121,547
Nisshin Steel Co.		4,889		18,158
Nissin Food Products Co. Ltd.		649		24,050
Nitto Denko Corp.		836		41,868
NOK Corp.		632		12,427
Nomura Holdings, Inc.		7,916		149,333
Nomura Research Institute Ltd.		119		17,259
NSK Ltd.		2,481		24,455
NTN Corp.		1,975		17,708
NTT Data Corp.		6		30,049
NTT DoCoMo, Inc.		81		127,961
Obayashi Corp.		3,727		24,178
Odakyu Electric Railway Co. Ltd.		4,384		28,034
OJI Paper Co. Ltd.		4,324		22,963
Olympus Corp.		1,092		34,319
Omron Corp.		1,215		34,509
Onward Kashiyama Co. Ltd.		1,255		16,019
ORIX Corp.		435		125,925
Osaka Gas Co. Ltd.		10,726		39,928
Pioneer Corp.		1,205		16,545
Promise Co. Ltd.		523		16,261
Rakuten, Inc.		35		16,323
Resona Holdings, Inc.		20		54,620
Ricoh Co. Ltd.		3,230		65,954
Rohm Co. Ltd.		534		53,173
Ryohin Keikaku Co. Ltd.		149		11,406
Sankyo Co. Ltd.		321		17,776
Sanyo Electric Co. Ltd. (a)		8,198		10,402
Sapporo Hokuyo Holdings		2		19,327
SBI Holdings, Inc.		50		16,848
Secom Co. Ltd.		975		50,550
Sega Sammy Holdings, Inc.		876		23,629
Seiko Epson Corp.		661		16,080
Sekisui Chemical Co. Ltd.		2,137		17,041
Sekisui House Ltd.		2,431		35,401
Seven & I Holdings Co. Ltd.		3,865		120,167
Sharp Corp.		4,585		78,982
Shimamura Co. Ltd.		149		17,115
Shimizu Corp.		3,438		17,189
Shin-Etsu Chemical Co. Ltd.		1,704		114,120
Shinko Electric Industries Co. Ltd.		437		11,420
Shinko Securities Co. Ltd.		2,930		11,375
Shinsei Bank Ltd.		7,803		45,898
Shionogi & Co. Ltd.		1,418		27,882
Shiseido Co. Ltd.		1,603		34,753
The Shizuoka Bank Ltd.		2,810		27,886
Showa Denko KK		5,784		22,163
Showa Shell Sekiyu KK		1,513		16,935
SMC Corp.		246		34,893
Softbank Corp.		3,226		62,755
Sojitz Corp. (a)		3,592		10,926
Sompo Japan Insurance, Inc.		4,141		50,629
Sony Corp.		4,381		187,749
Stanley Electric Co. Ltd.		837		16,774
Sumco Corp.		217		18,344
Sumitomo Chemical Co. Ltd.		7,396		57,363

	SHARES		VALUE
Japan - 22.3% (Continued)
Sumitomo Electric Industries Ltd.		3,322	$	51,922
Sumitomo Heavy Industries Ltd.		2,700		28,360
Sumitomo Metal Industries Ltd.		18,170		78,937
Sumitomo Metal Mining Co. Ltd.		2,610		33,490
Sumitomo Mitsui Financial Group, Inc.		28		287,047
Sumitomo Realty & Development Co. Ltd.		1,767		56,720
Sumitomo Rubber Industries, Inc.		851		10,991
Sumitomo Titanium Corp.		101		11,296
The Sumitomo Trust & Banking Co. Ltd.		6,004		62,964
Sumitomo Corp.		4,974		74,440
Suruga Bank Ltd.		1,316		16,300
Suzuken Co. Ltd.		462		17,392
T&D Holdings, Inc.		1,109		73,340
Taiheiyo Cement Corp.		4,301		16,842
Taisei Corp.		5,861		17,878
Taisho Pharmaceutical Co. Ltd.		1,246		22,668
Takashimaya Co. Ltd.		1,556		21,992
Takeda Pharmaceutical Co. Ltd.		3,965		272,207
Takefuji Corp.		598		23,668
Tanabe Seiyaku Co. Ltd.		1,345		17,575
TDK Corp.		579		46,026
Teijin Ltd.		4,478		27,582
Terumo Corp.		866		34,056
THK Co. Ltd.		684		17,645
Tobu Railway Co. Ltd.		5,750		27,782
Toho Co. Ltd.		928		16,766
Toho Titanium Co. Ltd.		110		5,777
Tohoku Electric Power Co., Inc.		2,077		51,923
Tokuyama Corp.		1,188		18,089
The Tokyo Electric Power Co., Inc.		5,388		174,310
Tokyo Electron Ltd.		742		58,485
Tokyo Gas Co. Ltd.		9,939		52,867
Tokyo Steel Manufacturing Co. Ltd.		764		11,980
Tokyo Tatemono Co. Ltd.		1,542		17,182
Tokyu Land Corp.		1,728		16,292
Tokyu Corp.		5,324		34,090
TonenGeneral Sekiyu KK		2,176		21,558
Toppan Printing Co. Ltd.		3,215		35,499
Toray Industries, Inc.		6,208		46,532
Toshiba Corp.		12,981		84,537
Tosoh Corp.		2,550		11,271
Toto Ltd.		1,729		17,318
Toyo Seikan Kaisha Ltd.		1,030		17,059
Toyota Industries Corp.		896		41,184
Toyota Motor Corp.		12,630		844,795
Toyota Tsusho Corp.		1,078		28,896
Trend Micro, Inc.		576		16,892
Ube Industries Ltd.		5,614		16,134
Uni-Charm Corp.		304		18,060
UNY Co. Ltd.		1,363		17,753
Ushio, Inc.		860		17,669
West Japan Railway Co.		9		38,494
Yahoo Japan Corp.		73		29,076
Yakult Honsha Co.		611		17,559
Yamada Denki Co. Ltd.		432		36,664
Yamaha Motor Co.		957		30,076
Yamaha Corp.		816		17,279

The accompanying notes are an integral part of the financial statements.

85

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	EAFE INTERNATIONAL INDEX PORTFOLIO

	SHARES		VALUE
Japan - 22.3% (Continued)
Yamato Holdings Co. Ltd.		1,845	$	28,371
Yaskawa Electric Corp.		1,042		12,057
Yokogawa Electric Corp.		1,064		16,871
				13,119,569
Netherlands - 4.9%
ABN AMRO Holding NV		7,689		247,148
Aegon NV		6,386		121,726
Akzo Nobel NV		1,223		74,602
ASML Holding NV (a)		2,268		56,404
Buhrmann NV		798		11,861
Corio NV		297		24,268
Euronext NV		386		45,604
European Aeronautic Defense and Space Co.		1,433		49,371
Fugro NV		366		17,490
Hagemeyer NV (a)		2,280		11,557
Heineken NV		1,062		50,510
ING Groep NV		8,057		357,250
James Hardie Industries NV		2,571		19,503
Koninklijke Ahold NV (a)		7,100		75,541
Koninklijke DSM NV		696		34,389
Koninklijke Philips Electronics NV		5,261		198,412
Mittal Steel Company NV		3,133		132,260
Qiagen NV (a)		761		11,693
Randstad Holding NV		254		17,569
Reed Elsevier NV		3,657		62,370
Rodamco Europe NV		275		36,592
Royal Dutch Shell Plc - Class A		17,038		595,478
Royal KPN NV		8,497		120,801
Royal Numico NV		773		41,581
SBM Offshore NV		679		23,349
STMicroelectronics NV		3,028		56,239
TNT NV		2,025		87,089
Unilever NV		7,430		203,024
Vedior NV		862		17,876
Wereldhave NV		220		29,302
Wolters Kluwer NV		1,415		40,701
				2,871,560
New Zealand - 0.1%
Fletcher Building Ltd.		3,158		24,586
Telecom Corporation of New Zealand Ltd.		12,133		41,545
				66,131
Norway - 0.9%
Acergy SA (a)		907		17,456
Aker Kvaerner ASA		138		17,219
DNB NOR ASA		3,344		47,463
Frontline Ltd.		352		11,347
Norsk Hydro ASA		3,297		102,317
Norske Skogindustrier ASA		1,026		17,689
Orkla ASA		908		51,406
Pan Fish ASA (a)		13,520		12,360
Petroleum Geo - Services (a)		747		17,551
Prosafe ASA		1,200		17,032
SeaDrill Ltd. (a)		981		16,559
Statoil ASA		2,956		78,342
Storebrand ASA		1,327		16,877

	SHARES		VALUE
Norway - 0.9% (Continued)
Tandberg ASA		812	$	12,242
Telenor ASA		3,291		61,886
TGS Nopec Geophysical Co. ASA (a)		573		11,855
Yara International ASA		1,073		24,393
				533,994
Portugal - 0.3%
Banco Comercial Portugues SA		11,646		43,045
Electricidade de Portugal SA		9,193		46,599
Portugal Telecom SGPS SA		4,393		57,062
Sonae SGPS SA		5,707		11,376
				158,082
Singapore - 0.9%
CapitaLand Ltd.		7,372		29,800
City Developments Ltd.		2,949		24,419
DBS Group Holdings Ltd.		5,255		77,433
Keppel Corp. Ltd.		3,008		34,517
Oversea-Chinese Banking Corp. Ltd.		14,036		70,466
SembCorp Industries Ltd.		6,853		17,158
Singapore Airlines Ltd.		3,209		36,614
Singapore Exchange Ltd.		6,748		25,078
Singapore Press Holdings Ltd.		14,690		40,993
Singapore Telecommunications Ltd.		28,298		60,516
United Overseas Bank Ltd.		6,164		77,967
Venture Corp. Ltd.		1,880		16,548
				511,509
Spain - 4.0%
Abertis Infraestructuras SA		1,323		39,294
Acciona SA		154		28,684
Acerinox SA		979		29,788
ACS, Actividades de Construccion y Servicios SA		1,102		62,130
Altadis SA		1,297		67,885
Antena 3 de Television SA		453		10,662
Banco Bilbao Vizcaya Argentaria SA		15,674		377,393
Banco Popular Espanol SA		4,086		74,056
Banco Santander Central Hispano SA		26,264		490,229
Cintra Concesiones de Infraestructuras de Transporte SA		1,333		22,347
Corporacion Mapfre SA		3,836		17,318
Ebro Puleva SA		907		22,988
Endesa SA		3,364		159,108
Fadesa Inmobiliaria SA		244		11,321
Fomento de Construcciones y Contratas SA		210		21,401
Gamesa Corporacion Tecnologica SA		842		23,174
Gas Natural SDG SA		958		37,925
Grupo Ferrovial SA		291		28,407
Iberdrola SA		3,483		152,276
Iberia Lineas Aereas de Espana SA		3,100		11,294
Inditex SA		933		50,262
Indra Sistemas SA		928		22,797
Repsol YPF SA		4,014		138,825
Sacyr Vallehermoso SA		435		25,840
Telefonica SA		19,575		416,539
Union Fenosa SA		547		27,077
				2,369,020

The accompanying notes are an integral part of the financial statements.

86

Summit Mutual Funds, Inc. - Pinnacle Series
EAFE INTERNATIONAL INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
Sweden - 2.5%
Alfa Laval AB		538	$	24,283
Assa Abloy AB		1,615		35,150
Atlas Copco AB - A Shares		2,520		84,663
Boliden AB		1,367		35,144
Electrolux AB		1,397		27,957
Elekta AB - Class B		513		10,809
Eniro AB		1,317		17,410
Getinge AB		1,062		23,812
Hennes & Mauritz AB		2,033		102,750
Husqvarna AB - B Shares (a)		1,587		24,804
Kungsleden AB		1,083		16,611
Lundin Petroleum AB (a)		1,071		12,437
Modern Times Group MTG AB - Class B		262		17,222
Nordea Bank AB		8,985		138,464
Oriflame Cosmetics SA		278		11,451
Sandvik AB		4,537		65,941
Scania AB		495		34,779
Securitas AB - Class B		1,973		30,621
Skandinaviska Enskilda Banken AB		2,165		68,783
Skanska AB		1,785		35,200
SKF AB - B Shares		1,953		36,088
SSAB Svenskt Stal AB - Class A		1,026		24,354
Svenska Cellulosa AB - B Shares		905		47,260
Svenska Handelsbanken AB		2,411		72,901
Swedish Match AB		1,537		28,738
Tele2 AB - B Shares		1,641		23,970
Telefonaktiebolaget LM Ericsson - Class B		66,367		268,049
TeliaSonera AB		8,427		69,241
Volvo AB - B Shares		1,414		97,386
				1,486,278
Switzerland - 6.8%
ABB Ltd.		9,450		169,456
Adecco SA		574		39,217
Ciba Specialty Chemicals AG		428		28,469
Clariant AG		1,171		17,539
Compagnie Financiere Richemont AG		2,356		137,280
Credit Suisse Group		5,155		360,660
Geberit AG		19		29,283
Givaudan SA		36		33,326
Holcim Ltd.		940		86,170
Kuehne & Nagel Intl AG		312		22,699
Logitech International SA (a)		785		22,645
Lonza Group AG		193		16,679
Nestle SA		1,790		636,085
Nobel Biocare Holding AG		112		33,113
Novartis AG		10,386		598,782
OC Oerlikon Corp. AG		24		11,867
Phonak Holding AG		222		17,672
PSP Swiss Property AG (a)		504		28,954
Roche Holding AG		3,125		560,371
Schindler Holding AG		276		17,362
Serono SA		25		22,446
SGS SA		25		27,862
Sulzer AG		21		23,904
Swatch Group AG		219		48,392
Swiss Re		1,510		128,384
Swisscom AG		92		34,826

	SHARES		VALUE
Switzerland - 6.8% (Continued)
Syngenta AG		462	$	85,954
Synthes, Inc.		237		28,261
UBS AG		8,725		530,231
Zurich Financial Services AG		663		178,469
				3,976,358
United Kingdom - 22.2%
3i Group Plc		2,338		46,208
Aegis Group Plc		4,123		11,302
Aggreko		1,443		12,304
Alliance Boots Plc		3,795		62,231
AMEC Plc		1,318		10,877
Amvescap Plc		3,517		41,042
Anglo American Plc		6,345		309,467
ARM Holdings Plc		7,181		17,681
AstraZeneca Plc		6,991		375,606
Aviva Plc		11,414		183,704
BAE Systems Plc		13,967		116,430
Balfour Beatty Plc		1,994		17,296
Barclays Plc		29,387		420,036
Barratt Developments Plc		1,199		28,993
BBA Aviation Plc		3,093		16,563
Bellway Plc		577		17,443
Berkeley Group Holdings (a)		505		16,918
BG Group Plc		15,123		205,201
BHP Billiton Plc		11,176		204,491
Biffa Plc		1,881		11,307
Bovis Homes Group Plc		532		11,291
BP Plc		88,966		988,550
British Airways Plc (a)		2,840		29,333
British American Tobacco Plc		7,035		196,836
British Land Co.		2,349		78,832
British Sky Broadcasting Group Plc		4,975		50,848
BT Group Plc		35,339		208,617
Bunzl Plc		2,256		27,764
Burberry Group Plc		2,285		28,880
Cable & Wireless Plc		10,548		32,580
Cadbury Schweppes Plc		9,566		102,360
Capita Group Plc		2,861		34,003
Carnival Plc		831		42,109
Carphone Warehouse		1,855		11,405
Cattles Plc		2,138		18,388
Centrica Plc		16,162		112,183
Charter Plc (a)		650		11,518
Close Brothers Group Plc		873		17,375
Cobham Plc		6,366		24,150
Collins Stewart Plc-w/i (a)		970		4,824
Compass Group Plc		9,860		55,987
Cookson Group Plc		940		11,558
Corus Group Plc		3,815		39,631
Csr Plc (a)		874		11,123
Daily Mail & General Trust		1,605		22,532
De La Rue Plc		907		11,446
Diageo Plc		12,238		240,217
DSG International Plc		8,821		33,075
Electrocomponents Plc		2,928		16,812
EMAP Plc		1,414		22,356

The accompanying notes are an integral part of the financial statements.

87

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	EAFE INTERNATIONAL INDEX PORTFOLIO

	SHARES		VALUE
United Kingdom - 22.2% (Continued)
EMI Group Plc		3,859	$	20,023
Enterprise Inns Plc		1,521		40,294
Fiberweb Plc (a)		1		3
First Choice Holidays Plc		3,134		17,489
FirstGroup Plc		2,069		23,294
Friends Provident Plc		8,159		34,666
Gallaher Group Plc		3,271		73,428
GKN Plc		4,190		22,807
GlaxoSmithKline Plc		25,841		680,013
Group 4 Securicor Plc		6,463		23,790
Hammerson Plc		1,335		41,221
Hanson Plc		3,059		46,149
Hays Plc		7,207		22,472
HBOS Plc		16,833		373,093
Home Retail Group		4,254		34,150
HSBC Holdings Plc		50,742		924,966
ICAP Plc		2,437		22,832
IMI Plc		2,230		22,137
Imperial Chemical Industries Plc		5,254		46,498
Imperial Tobacco Group Plc		3,192		125,623
Inchcape		2,283		22,619
Intercontinental Hotels Group Plc		1,791		44,258
International Power Plc		6,714		50,184
Intertek Group Plc		1,089		17,772
Invensys Plc (a)		4,214		22,708
Investec Plc		1,857		23,979
ITV Plc		18,266		38,089
J Sainsbury Plc		6,456		51,732
Johnson Matthey Plc		1,021		28,167
Kelda Group Plc		1,894		34,340
Kesa Electricals Plc		3,232		21,468
Kingfisher Plc		11,022		51,472
Ladbrokes Plc		3,555		29,109
Land Securities Group Plc		2,123		96,562
Legal & General Group Plc		27,497		84,796
Liberty International Plc		1,298		35,479
Lloyds TSB Group Plc		24,982		279,545
LogicaCMG Plc		6,246		22,747
London Stock Exchange Group		658		16,868
Man Group Plc		8,196		83,889
Marks & Spencer Group Plc		7,390		103,746
Michael Page International Plc		1,976		17,497
Misys Plc		2,669		11,301
Mitchells & Butlers Plc		1,999		27,810
National Express Group Plc		821		18,165
National Grid Plc		11,726		169,211
Next Plc		1,131		39,861
Old Mutual Plc		22,413		76,468
Pearson Plc		3,723		56,239
Persimmon Plc		1,363		40,725
Provident Financial Plc		1,309		17,979
Prudential Plc		10,441		143,001
Punch Taverns Plc		1,178		29,500
Rank Group Plc		3,674		16,815
Reckitt Benckiser Plc		2,702		123,480
Reed Elsevier Plc		6,168		67,691
Rentokil Initial Plc		8,995		29,192

	SHARES		VALUE
United Kingdom - 22.2% (Continued)
Resolution Plc		3,114	$	39,113
Reuters Group Plc		6,376		55,585
Rexam Plc		2,692		27,699
Rio Tinto Plc		4,579		243,685
Rolls-Royce Group Plc (a)		8,041		70,497
Royal & Sun Alliance Insurance Group		13,405		40,026
Royal Bank of Scotland Group Plc		14,097		550,101
Royal Dutch Shell Plc - Class B		12,462		436,762
SABMiller Plc		3,950		90,875
Sage Group Plc		5,581		29,614
Scottish & Newcastle Plc		3,630		39,766
Scottish & Southern Energy Plc		3,799		115,592
Scottish Power Plc		6,571		96,241
Serco Group		2,284		17,083
Severn Trent Plc		1,184		34,088
Signet Group Plc		9,756		22,636
Slough Estates Plc		2,312		35,558
Smith & Nephew Plc		4,691		48,956
Smiths Group Plc		2,745		53,290
Stagecoach Group Plc		3,862		11,569
Standard Life Plc (a)		9,036		52,325
Tate & Lyle Plc		2,126		31,990
Taylor Woodrow Plc		2,862		23,886
Tesco Plc		35,534		281,431
Tomkins Plc		4,817		23,178
Travis Perkins Plc		630		24,473
Trinity Mirror Plc		2,328		21,401
Tullett Prebon Plc (a)		1,187		15,107
Unilever Plc		5,394		150,820
United Business Media Plc		1,235		16,757
United Utilities Plc		4,044		61,753
Vodafone Group Plc		228,079		631,903
Whitbread Plc		1,053		34,537
William Hill Plc		1,884		23,313
Wimpey George Plc		2,061		22,538
Wolseley Plc		3,027		73,078
WPP Group Plc		5,469		73,940
Xstrata Plc		2,681		133,858
Yell Group Plc		3,508		39,151
				13,055,270
TOTAL COMMON STOCKS
(Cost $36,244,236)				57,534,639
UNIT INVESTMENT TRUSTS - 2.9%
iShares MSCI EAFE Index Fund		23,638		1,730,774
TOTAL UNIT INVESTMENT TRUSTS
(Cost $1,699,951)				1,730,774
PREFERRED STOCKS - 0.2%
Germany - 0.2%
Henkel KGaA		271		39,923
Porsche AG		37		47,228
ProSiebenSat.1 Media AG		364		11,594
TOTAL PREFERRED STOCKS
(Cost $54,950)				98,745

The accompanying notes are an integral part of the financial statements.

88

Summit Mutual Funds, Inc. - Pinnacle Series
EAFE INTERNATIONAL INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

	SHARES		VALUE
RIGHTS - 0.0%
Dowa Mining Co. Ltd.
Issued by Mizuho International Plc, Exp. 1/29/2010,
Strike $1 (a) (c)		1,805	$	757
TOTAL RIGHTS
(Cost $0)				757
SHORT TERM INVESTMENTS - 0.7%
Money Market Funds - 0.7%
Northern Institutional Diversified Assets Portfolio		393,134		393,134
TOTAL SHORT TERM INVESTMENTS
(Cost $393,134)				393,134
Total Investments (Cost $38,392,271) (b) - 101.7%				59,758,049
Liabilities in Excess of Other Assets - (1.7)%				(1,003,875	)
TOTAL NET ASSETS - 100.0%			$	58,754,174

ADR	American Depository Receipt
(a)	Non income producing security.
(b)	For federal income tax purposes, cost is $39,001,681 and gross unrealized appreciation and depreciation of securities as of December 31, 2006, was $21,023,093 and $(265,156) respectively, with a net appreciation / (depreciation) of $20,757,937.
(c)	Valued in good faith under procedures adopted by the Board of Directors.

The accompanying notes are in integral part of the financial statements.

89

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL STATEMENTS	EAFE INTERNATIONAL INDEX PORTFOLIO

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS
Investments in securities, at value	$	59,758,049
Cash denominated in foreign currencies		124
Receivables:
Shares sold		3,944
Securities sold		36,078
Interest and dividends		97,521
Receivable from adviser		2,804
Prepaid expenses and other		15,030
		59,913,550
LIABILITIES
Payables:
Investment securities purchased		350,410
Shares redeemed		669,601
Bank overdraft		2,245
Fund accounting fees		39,061
Custodian fees		37,714
Administration fees		24,942
Professional fees		17,062
Royalty fees		10,682
Other accrued expenses		7,659
		1,159,376
NET ASSETS*
Paid-in capital		35,758,468
Accumulated undistributed net
investment income / (loss)		807,040
Accumulated net realized gain / (loss)
on investments and foreign
currency translations		821,319
Net unrealized appreciation / (depreciation)
on investments and foreign
currency translations		21,367,347
	$	58,754,174
Investments at cost	$	38,392,271
Cash denominated in foreign currencies at cost		122
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$58,754,174	595,535	$98.66

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2006
	Percentage of ordinary distributions designated as
	qualified dividend income		76.78%
	Dividends received deduction for corporate shareholders		0.00%
	Undistributed ordinary income	$	1,672,233
	Undistributed long-term gains	$	565,536
	Unrealized appreciation	$	20,757,937

STATEMENT OF OPERATIONS
For the year ended December 31, 2006
INVESTMENT INCOME
Dividends	$	1,506,159
Foreign dividend taxes withheld		(124,811	)
		1,381,348
EXPENSES
Advisory fees		296,818
Fund accounting fees		132,444
Custodian fees		129,118
Administration fees		53,003
Professional fees		21,388
Royalty fees		18,395
Transfer agent fees		12,828
Directors’ fees		6,720
Shareholder reporting fees		5,235
Other expenses		5,342
		681,291
Reimbursements and waivers		(177,761	)
		503,530
NET INVESTMENT INCOME / (LOSS)		877,818
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments
and foreign currency translations		1,280,245
Net change in unrealized appreciation /
(depreciation) on investments
and foreign currency translations		10,070,223
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		11,350,468
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	12,228,286

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit(1)	and Waivers
0.56%	0.10%	1.25%	$177,761

(1)	The Adviser has voluntarily agreed to waive its fees and/or reimburse
	expenses of the portfolio to the extent necessary, to limit all expenses
	to 0.95% of the average daily net assets of the portfolio until
	December 31, 2007.

The accompanying notes are an integral part of the financial statements.

90

Summit Mutual Funds, Inc. - Pinnacle Series
EAFE INTERNATIONAL INDEX PORTFOLIO	FINANCIAL STATEMENTS

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	877,818		$	878,823
Net realized gain / (loss) on investments and foreign currency translations		1,280,245			1,252,335
Net change in unrealized appreciation / (depreciation) on investments and
foreign currency translations		10,070,223			4,008,365
		12,228,286			6,139,523
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(898,476	)		(503,262	)
Net realized gain on investments		(1,089,408	)		(572,574	)
		(1,987,884	)		(1,075,836	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		16,521,253			10,937,411
Reinvestment of distributions		1,987,884			1,075,836
Payments for shares redeemed		(14,078,992	)		(23,931,568	)
		4,430,145			(11,918,321	)
NET INCREASE / (DECREASE) IN NET ASSETS		14,670,547			(6,854,634	)
NET ASSETS
Beginning of period		44,083,627			50,938,261
End of period	$	58,754,174		$	44,083,627
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	807,040		$	821,482

FUND SHARE TRANSACTIONS
Sold	184,761			145,658
Reinvestment of distributions	23,882			14,523
Redeemed	(150,829		)	(307,624		)
Net increase / (decrease) from fund share transactions	57,814			(147,443		)
TOTAL COST OF PURCHASES OF:
Preferred and Common Stocks	$	26,940,948		$	36,761,946
	$	26,940,948		$	36,761,946
TOTAL PROCEEDS FROM SALES OF:
Preferred and Common Stocks	$	23,378,114		$	48,427,494
	$	23,378,114		$	48,427,494
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	1,827,354		$	855,328
Long-term capital gains		160,530			220,508
	$	1,987,884		$	1,075,836

The accompanying notes are an integral part of the financial statements.

91

Summit Mutual Funds, Inc. - Pinnacle Series

LEHMAN AGGREGATE BOND INDEX PORTFOLIO

Summit Lehman Aggregate Bond Index Portfolio - Average Annual Total Return
1-Year	3-Year	Since Inception
3.64%	2.92%	2.78%

Past performance is not predictive of future results. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower.

Portfolio Data
Managers:	Gary R. Rodmaker
	Nick J. Kotsonis
	Kevin P. Aug
Inception Date:	April 1, 2003
Total Net Assets:	$39.16 Million
Number of Fixed Income Holdings:	93
Average Duration:	4.18 years
Average Maturity:	12.30 years
Average Credit Quality:	Aaa/AAA
30-day SEC Yield:	4.48%

Quality Breakdown
	% of portfolio
AAA	76%
AA	1%
A	16%
BBB	7%
Allocations

Sector Allocations

92

Summit Mutual Funds, Inc. - Pinnacle Series   

LEHMAN AGGREGATE BOND INDEX PORTFOLIO   

Objective - Seeks investment results that correspond to the total return performance of the bond market, as represented by the Lehman Brothers Aggregate Bond Index (the “Index”).

Strategy - The Summit Pinnacle Lehman Aggregate Bond Index Portfolio (the “Portfolio”) will invest at least 80% of the value of its assets in obligations issued or guaranteed by the U.S. Government, publicly-traded debt securities rated BBB or BAA3 or higher by a national rating agency, or cash and cash equivalents. Up to 20% of the Portfolio’s total assets may be invested in financial futures or options contracts. The Portfolio will not purchase bonds rated below investment grade.

Managers’ Comments:

For the year ended December 31, 2006, the Summit Lehman Aggregate Bond Index Portfolio’s total return was 3.64% (before the impact of any product or contract-level fees). This compares to a 4.33% total return for the Lehman Aggregate Bond Index. The difference of 0.69% is referred to as “tracking error” and is attributed to a number of factors, including the Portfolio’s operating expenses. These expenses represent the Portfolio’s costs for advisory, administration, accounting, custody and other services. Other factors include the fact that the Portfolio is only a sample of the Index verses a complete replication of the Index, the timing and size of cash flows into and out of the Portfolio and related holdings of cash and cash equivalents; and brokers’ commissions or other trading costs, among others. While an exact replication of the capitalization weightings of securities in the Index is not feasible, the Portfolio’s objectives and strategies call for a correlation of at least 95% between the Portfolio’s pre-expense total return and that of the Index. The Portfolio achieved this level of correlation for the period presented.

93

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL HIGHLIGHTS	LEHMAN AGGREGATE BOND INDEX PORTFOLIO

FINANCIAL HIGHLIGHTS
										Period from
										April 1, 2003(1)
	Year Ended December 31,									to December 31,
		2006			2005			2004			2003
Net asset value, beginning of period		$	49.06		$	50.13		$	49.78		$	50.00
INVESTMENT ACTIVITIES:
Net investment income / (loss)			1.97			1.83			1.71(4	)		1.32
Net realized and unrealized gains / (losses)			(0.24	)		(1.06	)		0.03			(0.49	)
Total from Investment Activities			1.73			0.77			1.74			0.83
DISTRIBUTIONS:
Net investment income			(1.94	)		(1.84	)		(1.39	)		(1.05	)
Total Distributions			(1.94	)		(1.84	)		(1.39	)		(1.05	)
Net asset value, end of period		$	48.85		$	49.06		$	50.13		$	49.78
Total return			3.64	%		1.57	%		3.55	%		1.70	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(2)			0.59	%		0.60	%		0.60	%		0.60%(3	)
Ratio of expenses to average net assets - gross			0.59	%		0.63	%		0.71	%		1.10%(3	)
Ratio of net investment income / (loss) to average net assets			3.96	%		3.54	%		3.26	%		2.83%(3	)
Portfolio turnover rate			27.93	%		15.93	%		43.24	%		31.94%(3	)
		$	39,160		$	37,657		$	32,786		$	10,296
Net assets, end of period (000’s)

⁽¹⁾ Commencement of operations.

⁽²⁾ Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

⁽³⁾ Annualized.

⁽⁴⁾ Per share amounts are based on average shares outstanding.

The accompanying notes are an integral part of the financial statements.

94

Summit Mutual Funds, Inc. - Pinnacle Series
LEHMAN AGGREGATE BOND INDEX PORTFOLIO	SCHEDULE OF INVESTMENTS

DECEMBER 31, 2006
	PRINCIPAL
	AMOUNT		VALUE
U.S. TREASURY OBLIGATIONS - 25.7%
U.S. TREASURY NOTES & BONDS
U.S. Treasury Bonds
6.250%, 08/15/2023 (c)	$	400,000	$	460,406
5.500%, 08/15/2028 (c)		500,000		540,156
5.250%, 11/15/2028 (c)		400,000		419,469
5.250%, 02/15/2029 (c)		725,000		760,344
6.125%, 08/15/2029 (c)		200,000		233,750
U.S. Treasury Notes
2.250%, 02/15/2007 (c)		450,000		450,005
6.250%, 02/15/2007 (c)		450,000		451,963
2.750%, 08/15/2007 (c)		760,000		749,431
6.125%, 08/15/2007 (c)		500,000		503,164
5.500%, 02/15/2008 (c)		650,000		653,606
5.625%, 05/15/2008 (c)		300,000		302,742
3.125%, 10/15/2008 (c)		500,000		485,567
3.375%, 12/15/2008 (c)		196,000		190,817
5.500%, 05/15/2009 (c)		200,000		203,344
6.000%, 08/15/2009 (c)		750,000		772,646
6.500%, 02/15/2010 (c)		600,000		630,305
4.000%, 04/15/2010 (c)		250,000		244,629
5.750%, 08/15/2010 (c)		300,000		310,348
4.250%, 01/15/2011 (c)		950,000		934,266
4.875%, 02/15/2012 (c)		250,000		252,285
4.375%, 08/15/2012 (c)		100,000		98,562
3.875%, 02/15/2013 (c)		150,000		143,561
3.625%, 05/15/2013 (c)		300,000		282,668
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $10,180,495)				10,074,034
SOVEREIGN GOVERNMENT BONDS - 0.8%
Republic of Italy
2.500%, 07/15/2008		200,000		192,349
New Brunswick
6.750%, 08/15/2013		100,000		109,712
TOTAL SOVEREIGN GOVERNMENT BONDS
(Cost $309,857)				302,061
MORTGAGE BACKED SECURITIES - 36.4%
Bear Stearns Commercial Mortgage Securities, Inc.
Series 2000-WF2, 7.110%, 10/15/2032		175,119		177,270
Series 2003-TOP12, 4.240%, 08/13/2039		350,000		338,665
Series 2004-PWR5, 4.254%, 07/11/2042		580,000		565,307
Fannie Mae
Pool #615009, 5.000%, 12/01/2016		1,406,252		1,387,674
Fannie Mae Pool
Pool #639917, 5.000%, 11/01/2017		198,387		195,648
Pool #727360, 5.500%, 08/01/2018		488,159		489,091
Pool #828624, 5.000%, 06/01/2020		660,697		649,534
Pool #211487, 6.500%, 04/01/2023		69,654		72,009
Pool #653650, 6.500%, 08/01/2032		465,212		473,746
Pool #555591, 5.500%, 07/01/2033		755,582		747,880
Pool #722267, 5.500%, 07/01/2033		889,881		880,810
Pool #732114, 6.000%, 08/01/2033		188,105		189,691
Pool #357457, 5.500%, 11/01/2033		860,558		851,786
Pool #801322, 5.000%, 10/01/2034		1,179,079		1,139,780

	PRINCIPAL
	AMOUNT		VALUE
MORTGAGE BACKED SECURITIES - 36.4% (Continued)
Freddie Mac
Pool #G1-1798, 5.000%, 11/01/2020	$	858,034	$	843,035
Freddie Mac (Gold) Pool
Pool #E9-6460, 5.000%, 05/01/2018		1,306,216		1,286,192
Pool #E9-9160, 4.500%, 09/01/2018		503,446		486,385
Pool #C7-6658, 5.000%, 02/01/2033		1,130,172		1,092,410
Pool #G0-8146, 6.000%, 08/01/2036		1,163,773		1,172,380
Ginnie Mae Pool
Pool #003583M, 5.500%, 07/20/2034		974,249		967,734
J.P. Morgan Chase Commercial Mortgage Backed
Security Corp.
Series 2001-C1, 5.464%, 10/12/2035		231,228		230,853
TOTAL MORTGAGE BACKED SECURITIES
(Cost $14,584,389)				14,237,880
ASSET BACKED SECURITIES - 0.5%
Residential Asset Securities Corp.
Series 2003-KS4, 4.610%, 06/25/2033		183,126		180,163
TOTAL ASSET BACKED SECURITIES
(Cost $180,986)				180,163
U.S. GOVERNMENT AGENCY ISSUES - 9.2%
Federal Farm Credit Bank
4.250%, 02/01/2012		750,000		725,663
Federal Home Loan Mortgage Corp.
5.750%, 03/15/2009		200,000		203,079
7.000%, 03/15/2010		1,300,000		1,378,404
Federal National Mortgage Association
5.050%, 02/07/2011		1,300,000		1,305,556
TOTAL U.S. GOVERNMENT AGENCY ISSUES
(Cost $3,620,917)				3,612,702
CORPORATE BONDS - 21.1%
Consumer Discretionary - 1.7%
Cintas Corp No. 2
5.125%, 06/01/2007		68,000		67,910
EW Scripps Co.
5.750%, 07/15/2012		180,000		181,272
Johnson Controls, Inc.
5.250%, 01/15/2011		200,000		198,423
TCI Communications, Inc.
8.750%, 08/01/2015		100,000		118,279
Thomson Corp.
6.200%, 01/05/2012		100,000		102,919
				668,803
Consumer Staples - 1.5%
Campbell Soup Co.
5.875%, 10/01/2008 (c)		230,000		231,833
Cargill Inc.
5.000%, 11/15/2013 (a) (c)		250,000		243,646
Diageo Capital PLC
3.375%, 03/20/2008 (c)		136,000		132,824
				608,303

The accompanying notes are an integral part of the financial statements.

95

Summit Mutual Funds, Inc. - Pinnacle Series
SCHEDULE OF INVESTMENTS	LEHMAN AGGREGATE BOND INDEX PORTFOLIO

Energy - 2.8%	PRINCIPAL
Colonial Pipeline Co.	AMOUNT		VALUE
7.750%, 11/01/2010 (a)	$	375,000	$	406,317
6.580%, 08/28/2032 (a)		100,000		110,407
Conoco Funding Co.
6.350%, 10/15/2011		80,000		83,636
Devon Financing Corp ULC
6.875%, 09/30/2011		280,000		296,077
Public Service North Carolina, Inc.
6.625%, 02/15/2011		180,000		187,992
				1,084,429
Financials - 3.7%
American General Finance Corp.
5.375%, 09/01/2009		210,000		210,354
Archstone-Smith Operating Trust
5.250%, 05/01/2015		250,000		245,294
Camden Property Trust
5.875%, 11/30/2012		100,000		101,400
Citigroup Capital II
7.750%, 12/01/2036		100,000		103,402
General Electric Capital Corp.
6.125%, 02/22/2011		250,000		258,426
Key Bank National Association
5.000%, 07/17/2007 (c)		185,000		184,446
Progressive Corp.
6.375%, 01/15/2012		165,000		172,198
TIAA Global Markets, Inc.
4.125%, 11/15/2007 (a)		180,000		178,048
				1,453,568
Health Care - 1.5%
Amgen, Inc.
6.500%, 12/01/2007		180,000		181,199
C.R. Bard, Inc.
6.700%, 12/01/2026		250,000		266,584
Eli Lilly & Co.
2.900%, 03/15/2008		100,000		97,338
Pharmacia Corp.
5.875%, 12/01/2008 (e)		50,000		50,527
				595,648
Industrials - 4.4%
Chevron Phillips Chemical Company LLC
7.000%, 03/15/2011		200,000		209,942
CSX Corp.
4.875%, 11/01/2009		180,000		178,026
Eaton Corp.
5.750%, 07/15/2012		439,000		445,434
Emerson Electric Co.
4.750%, 10/15/2015 (c)		200,000		190,854
Honeywell International, Inc.
7.500%, 03/01/2010		108,000		115,160

	PRINCIPAL
	AMOUNT		VALUE
Industrials - 4.4% (Continued)
Masco Corp.
5.875%, 07/15/2012	$	180,000	$	180,199
Pitney Bowes, Inc.
4.625%, 10/01/2012 (c)		180,000		173,394
United Technologies Corp.
4.375%, 05/01/2010		250,000		244,211
				1,737,220
Information Technology - 1.3%
Cisco Systems, Inc.
5.250%, 02/22/2011		250,000		250,627
Oracle Corp / Ozark Holdings, Inc.
5.250%, 01/15/2016		250,000		244,724
				495,351
Materials - 2.4%
Alcoa, Inc.
6.500%, 06/01/2011		200,000		208,755
Westvaco Corp.
7.950%, 02/15/2031 (c)		500,000		547,438
Weyerhaeuser Co.
7.500%, 03/01/2013		180,000		193,053
				949,246
Telecommunication Services - 1.2%
GTE Corp.
7.510%, 04/01/2009		180,000		187,729
6.940%, 04/15/2028		80,000		83,874
Sprint Capital Corp.
6.875%, 11/15/2028		180,000		180,181
				451,784
Utilities - 0.6%
Exelon Generation Co. LLC
5.350%, 01/15/2014		230,000		225,283
TOTAL CORPORATE BONDS
(Cost $8,547,206)				8,269,635
		SHARES		VALUE
UNIT INVESTMENT TRUSTS - 2.9%
iShares Lehman Aggregate Bond Fund		11,490	$	1,145,553
TOTAL UNIT INVESTMENT TRUSTS
(Cost $1,142,933)				1,145,553
SHORT TERM INVESTMENTS - 1.1%
Northern Institutional Diversified Assets Portfolio		434,860		434,860
TOTAL SHORT TERM INVESTMENTS
(Cost $434,860)				434,860
Total Investments (Cost $39,001,643) (b) - 97.7%				38,256,888
Northern Institutional Liquid Assets Portfolio (d) - 19.9%				7,779,519
Liabilities in Excess of Other Assets - (17.6)%				(6,875,960	)
TOTAL NET ASSETS - 100.0%			$	39,160,447

(a)	Security exempt from registration under Rule 144(a) of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(b)	For federal income tax purposes, cost is $39,008,254 and gross unrealized appreciation and depreciation of securities as of December 31, 2006 was $65,634 and ($817,000), respectively, with a net appreciation / (depreciation) of ($751,366).
(c)	All or a portion of this security is out on loan.
(d)	This security was purchased with cash collateral held from securities lending. The market value of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted is $10,913,524, $7,779,519, and $4,040,224, respectively.
(e)	Variable rate security.

The accompanying notes are in integral part of the financial statements.

96

Summit Mutual Funds, Inc. - Pinnacle Series
LEHMAN AGGREGATE BOND INDEX PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS
Investments in securities, at value	$	38,256,888
Collateral for securities loaned,
at fair value		7,779,519
Receivables:
Shares sold		65,908
Securities matured		500,000
Interest and dividends		457,297
Prepaid expenses and other		1,378
		47,060,990
LIABILITIES
Payables:
Payable upon return of securities loaned		7,779,519
Shares redeemed		74,480
Professional fees		14,566
Advisory fees		12,933
Fund accounting fees		8,545
Administration fees		4,090
Custodian fees		973
Other accrued expenses		5,437
		7,900,543
NET ASSETS*
Paid-in capital		40,106,808
Accumulated undistributed net investment
income / (loss)		237,576
Accumulated net realized gain / (loss)
on investments		(439,182	)
Net unrealized appreciation / (depreciation)
on investments		(744,755	)
	$	39,160,447
Investments at cost	$	39,001,643
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$39,160,447	801,619	$48.85

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2006
	Percentage of ordinary distributions designated as
	qualified dividend income				1.23%
	Dividends received deduction for corporate shareholders				1.23%
	Undistributed ordinary income			$	237,576
	Post October capital loss carryforward			$	(16,691)
	Capital Loss Carryforward Expiring December 31:
	2011	2012	2013	2014
	$(65,139)	$(58,001)	$(75,489)	$(217,251)

STATEMENT OF OPERATIONS
For the year ended December 31, 2006
INVESTMENT INCOME
Interest	$	1,692,602
Dividends		43,885
Other income		4,860
		1,741,347
EXPENSES
Advisory fees		114,804
Administration fees		38,268
Fund accounting fees		28,878
Professional fees		18,253
Transfer agent fees		12,263
Directors’ fees		4,731
Custodian fees		3,317
Shareholder reporting fees		2,860
Other expenses		3,621
		226,995
NET INVESTMENT INCOME / (LOSS)		1,514,352
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		(200,587	)
Net change in unrealized appreciation /
(depreciation) on investments		59,639
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		(140,948	)
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	1,373,404

TRANSACTIONS WITH AFFILIATES:
	Percent of Current
	Net Asset Value
Advisory	Administration	Expense
Fee	Fee	Limit
0.30%	0.10%	0.60%

The accompanying notes are in integral part of the financial statements.

97

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL STATEMENTS	LEHMAN AGGREGATE BOND INDEX PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	1,514,352		$	1,253,198
Net realized gain / (loss) on investments		(200,587	)		(4,812	)
Net change in unrealized appreciation / (depreciation) on investments		59,639			(709,227	)
		1,373,404			539,159
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(1,523,171	)		(1,307,757	)
		(1,523,171	)		(1,307,757	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		7,341,409			9,717,357
Reinvestment of distributions		1,523,171			1,307,757
Payments for shares redeemed		(7,211,808	)		(5,384,783	)
		1,652,772			5,640,331
NET INCREASE / (DECREASE) IN NET ASSETS		1,503,005			4,871,733
NET ASSETS
Beginning of period		37,657,442			32,785,709
End of period	$	39,160,447		$	37,657,442
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	237,576		$	206,429

FUND SHARE TRANSACTIONS
Sold	151,422			195,641
Reinvestment of distributions	31,573			26,556
Redeemed	(149,030		)	(108,502		)
Net increase / (decrease) from fund share transactions	33,965			113,695
TOTAL COST OF PURCHASES OF:
Common Stocks	$	2,937,541		$	452,975
U.S. Government Securities		7,459,902			6,515,096
Corporate Bonds		1,561,740			3,827,955
	$	11,959,183		$	10,796,026
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	2,454,252		$	453,506
U.S. Government Securities		6,156,872			4,087,576
Corporate Bonds		1,773,733			897,636
	$	10,384,857		$	5,438,718
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	1,523,171		$	1,307,757
	$	1,523,171		$	1,307,757

The accompanying notes are in integral part of the financial statements.

98

Summit Mutual Funds, Inc. - Pinnacle Series   

NOTES TO FINANCIAL STATEMENTS   

December 31, 2006

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

Summit Mutual Funds, Inc., (“Summit Mutual Funds”), is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, as an open-end management investment company. Summit Mutual Funds offers the Pinnacle Series and the Apex Series. The shares of the Pinnacle Series (the “Series”) are sold to insurance companies and their separate accounts to fund the benefits under certain variable insurance products. The results of the Series presented exclude the additional fees and expenses of variable annuity or variable life insurance contracts. The Series’ shares are offered in fourteen different portfolios: Zenith Portfolio, Bond Portfolio, S&P 500 Index Portfolio, S&P MidCap 400 Index Portfolio, Balanced Index Portfolio, Nasdaq-100 Index Portfolio, Russell 2000 Small Cap Index Portfolio, EAFE International Index Portfolio, Lehman Aggregate Bond Index Portfolio, Inflation Protected Plus Portfolio, Lifestyle ETF Market Strategy Target Portfolio, Lifestyle ETF Market Strategy Conservative Portfolio, Lifestyle ETF Market Strategy Aggressive Portfolio, and Natural Resources Portfolio (individually a “Portfolio”, collectively the “Portfolios”). 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, S&P MidCap 400 Index Portfolio, Nasdaq-100 Index Portfolio, Russell 2000 Small Cap Index Portfolio, and EAFE International Index Portfolio seek investment results that correspond to the total return performance of common stocks as represented by their respective 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, as represented by the Lehman Brothers Aggregate Bond Index. The Lehman Aggregate Bond Index Portfolio seeks investment results that correspond to the total return performance of the bond market, as represented by the Lehman Brothers Aggregate Bond Index. The Inflation Protected Plus Portfolio seeks to maximize real levels of current income consistent with reasonable investment risk, by investing primarily in inflation-indexed, fixed-income securities. The Lifestyle ETF Market Strategy Target Portfolio seeks primarily to provide capital growth and, secondarily, investment income by investing primarily in a portfolio of various exchange traded funds, (“ETFs”), representing different market exposures. The Lifestyle ETF Market Strategy Conservative Portfolio seeks primarily to provide capital growth and, secondarily, investment income, while managing risk levels to a more conservative level as compared to the Lifestyle ETF Market Strategy Target Portfolio, by investing primarily in a portfolio of various ETFs representing different market exposures. The Lifestyle ETF Market Strategy Aggressive Portfolio seeks primarily to provide capital growth and, secondarily, investment income, while managing risk levels to a more aggressive level as compared to the Lifestyle ETF Market Strategy Target Portfolio, by investing primarily in a portfolio of ETFs representing different market exposures. The Natural Resources Portfolio seeks primarily to provide capital growth, consistent with appropriate risk levels, by investing primarily in a portfolio of various ETFs and exchange traded notes representing different natural resources exposures. The results of the Portfolio(s) for your investment product are included herein.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 Global Market or NASDAQ Global Select Market, 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. Alternatively, NASDAQ listed securities may be valued on the basis of the NASDAQ Official Closing Price. 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. 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. Examples of valuation bases and factors used to determine securities’ fair value include: a multiple of earnings, a discounted value from freely-traded similar securities, relative yield to maturity calculations, market values for similar securities, utilization of the fair value information service of FT Interactive Data, or a combination of these or other methods. Additionally, general market risk, and credit, yield and other risks particular to a given issue and other factors are considered. Money market instruments with a remaining maturity of 60 days or less held in each Portfolio are valued at amortized cost which approximates market value.

99

Summit Mutual Funds, Inc. - Pinnacle Series

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued)

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 and premium 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. Paydown gains and losses on mortgage and asset-backed securities are presented as interest income.

Federal taxes - It is the intent of Summit Mutual Funds to comply with the requirements under Subchapter M 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 and held in connection with variable insurance products, are exempt from excise tax on undistributed income. Therefore, no provision for income or excise taxes has been recorded.

Distributions - Distributions from net investment income in all fixed income Portfolios generally are declared and paid quarterly. Equity Portfolios generally declare and pay dividends annually. 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 is determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles in the United States of America. These “book/tax” differences are considered either 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. The book/tax differences are primarily related to the tax deferral of losses on wash sales, Section 1256 Mark to Market, paydowns on mortgage-backed securities, post-October capital losses, and partnership adjustments. Distributions which exceed net investment income and net realized capital gains for financial reporting purposes but not for tax purposes are reported as distributions in excess of net investment income or distributions in excess of net realized capital gains. To the extent they exceed net investment income and net realized capital gains for tax purposes, they are reported as distributions of paid-in-capital.

Expenses - Allocable expenses of Summit Mutual Funds are charged to each Portfolio based on the ratio of the net assets of each Portfolio to the combined net assets of Summit Mutual Funds. Nonallocable expenses are charged to each Portfolio based on specific identification.

Foreign Currency - Summit Mutual Funds’ accounting records are maintained in U.S. dollars. All Portfolios may purchase foreign securities within certain limitations set forth in the Prospectus. 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 New York Currency Market. Summit Mutual Funds does not isolate the portion of operational results relating to changes in foreign exchange rates on investments from underlying market price fluctuations. All such results are included in net realized and unrealized gain or loss for investments.

Foreign security and currency transactions may involve certain risks not typically associated with those of U.S. companies. Such risks include the level of governmental supervision and regulations of foreign securities markets and the possibility of political and economic instability.

Futures Contracts - The S&P 500 Index Portfolio, S&P MidCap 400 Index Portfolio, Balanced Index Portfolio, Nasdaq-100 Index Portfolio, Russell 2000 Small Cap Index Portfolio, and EAFE International Index Portfolio (collectively, the “Index Portfolios”) as well as the Lifestyle ETF Market Strategy Target Portfolio, Lifestyle ETF Market Strategy Conservative Portfolio, Lifestyle ETF Market Strategy Aggressive Portfolio, and Natural Resources Portfolio (collectively, the “ETF Portfolios”) and Inflation Protected Plus Portfolio, may enter into futures contracts that relate to securities in which it may directly invest and indices composed of such securities and may purchase and write call and put options on such contracts. The Index Portfolios, ETF Portfolios, and Inflation Protected Plus Portfolio may invest up to 20% of their assets in such futures and/or options, except that until an Index Portfolio reaches $25 million (or $50 million in the case of the Nasdaq-100 Index Portfolio, the Russell 2000 Small Cap Index Portfolio, and the EAFE International Index Portfolio), 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 a Portfolio enters into a futures contract, it is required to deposit and maintain as collateral such initial margin as required by the exchange on which the contract is traded. Under terms of the contract, a Portfolio agrees 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

100

Summit Mutual Funds, Inc. - Pinnacle Series   

NOTES TO FINANCIAL STATEMENTS   

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued)

closed, at which time the gain or loss is realized. The Index Portfolios invest in futures as a substitute to investing in the common stock positions in the Index that they intend to match. A potential risk to the Index Portfolios is that the change in the value of the underlying securities may not correlate to the value of the contracts.

Portfolio Securities Lending- The Portfolios currently lend their securities to approved borrowers to earn additional income and receive cash and/or securities as collateral to secure the loans. Income from securities lending is included in “Other Income” on the Statement of Operations. Collateral is maintained at not less than 100% of the current market value of loaned securities. Although the risk of lending is mitigated by the collateral, the Portfolios could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return them. In addition to cash collateral, the Portfolios may accept noncash collateral consisting of government securities and irrevocable letters of credit from domestically domiciled banks.

NOTE 2 - TRANSACTIONS WITH AFFILIATES

Investment Advisory fees - Summit Mutual Funds pays investment advisory fees to Summit Investment Partners, Inc. (the “Adviser”) under terms of an Investment Advisory Agreement (the “Agreement”). Certain officers and directors of the Adviser are affiliated with Summit Mutual Funds. Summit Mutual Funds pays the Adviser, as full compensation for all services and facilities furnished, a monthly fee computed separately for each Portfolio on a daily basis.

Approval of Advisory Contract (unaudited) - At its November 14, 2006 meeting, the Board of Directors reviewed in detail written materials related to the proposed continuation of the Portfolios’ investment advisory contracts and the investment sub-advisory contract applicable to the EAFE International Index Portfolio for a one-year period. Following their review and consideration, the Directors determined that the investment advisory contracts and the sub-advisory contract will enable shareholders of each Portfolio to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board of Directors, including the Independent Directors, unanimously approved the renewal of each investment advisory contract and the sub-advisory contract. In reaching their decision, the Directors requested and obtained from the Adviser and the investment sub-adviser such information as they deemed reasonably necessary to evaluate the proposed continuation of the contracts. The Directors also carefully considered the information that they had received throughout the year from the Adviser and the investment sub-adviser as part of their regular oversight of the Portfolios, as well as: comparative fee, expense and performance information prepared using data from Lipper Inc. (“Lipper”), independent providers of mutual fund performance, fee and expense information; and profitability data. In considering the proposed continuation of the investment advisory contracts and the investment sub-advisory contract, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by legal counsel to the Portfolios and the Independent Directors and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

• The nature, extent and quality if the advisory services provided. The Board concluded that the Adviser (and sub-adviser, with respect to the EAFE International Index Portfolio) provides high quality services to each Portfolio, as indicated by the nature and quality of services provided in the past, each Portfolio’s competitive investment performance, the high level of correlation of the Index Portfolios to their benchmarks, the compliance track record of the Portfolios, the integrity, capability and professional experience of the Adviser’s personnel, and the Adviser’s (and sub-adviser’s) financial resources. The Board concluded that the Adviser and the sub-adviser provides all facilities and services reasonably necessary to analyze, execute and maintain investments that are consistent with the Portfolios’ objectives, restrictions and limitations. The Board also determined that the Adviser (and sub-adviser) proposed to provide investment and related services that were of the same quality and quantity as services provided to the Portfolios in the past, and that these services are appropriate in scope and extent in light of the Portfolios’ operations, the competitive landscape of the investment company business and investor needs.

• The investment performance of the Portfolios. With respect to each Portfolio, the Board determined that the Adviser (and subadviser, if relevant) has achieved competitive or superior investment performance relative to its benchmark index and comparable portfolios (as determined using Lipper data) over most measurement periods. In this regard, the Board determined that the Index Portfolios achieved the correlation expressed in the Portfolios’ prospectus. On the basis of the Directors’ assessment of the nature, extent and quality of services to be provided, the Directors concluded that the Adviser and sub-adviser are capable of generating a level of investment performance that is appropriate in light of the Portfolios’ investment objectives and strategies, and competitive with many other investment companies.

101

Summit Mutual Funds, Inc. - Pinnacle Series

NOTES TO FINANCIAL STATEMENTS

NOTE 2 - TRANSACTIONS WITH AFFILIATES (continued)

• The cost of advisory services provided and the level of profitability. The Board examined the investment advisory fees charged to each Portfolio, and noted that the Adviser charges 0.10% for administrative services. The Directors also reviewed the Adviser’s pre-tax operating income, gross revenues, margin (before and after dividends) for 2005 and the first three quarters of 2006, as well as other financial information relevant to an assessment of the Portfolios’ financial relationship with the Adviser and sub-adviser. On the basis of this information, the Board concluded that, with respect to each Portfolio, the level of investment advisory fees (and sub-advisory fees, if relevant) and fund administration fees is appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies, and the anticipated profitability of the relationship between each Portfolio and the Adviser and its affiliates. Further, on the basis of comparative information supplied by Lipper, the Board determined that the advisory fees and overall expense ratio of each Portfolio were favorable to or consistent with industry averages.

• Whether the advisory fees reflect economies of scale. The Board determined that the Portfolios have yet to achieve meaningful economies of scale, which, therefore, cannot be reflected in the advisory fees. The Board concluded that the advisory fees reflect the current economic environment for the Adviser and the competitive nature of the mutual fund market. The Directors also noted that Portfolio expenses are managed by the use of fee caps and waivers, as certain of the Portfolios are small and have not reached the size necessary to provide the Adviser its full fee.

• The extent to which economies of scale will be realized as the Portfolios grow. While the advisory fees do not reduce should Portfolio assets grow meaningfully, the Board determined that the advisory fees payable under the advisory arrangements already reflect potential future economies of scale to some extent by virtue of their competitive levels and the Adviser’s profitability at current or foreseeable asset levels. The Board also concluded that it would have the opportunity to periodically re-examine whether a Portfolio had achieved economies of scale, and the appropriateness of advisory fees payable to the Adviser and the subadviser, in the future.

• Benefits (such as soft dollars) to the Adviser or the Sub-Adviser from their relationships with the Portfolios (and any corresponding benefits to the Portfolios). The Board determined that other benefits derived by the Adviser and the sub-adviser from its relationship with the Portfolios are reasonable and fair, and are consistent with industry practice and the best interest of the Portfolios and their shareholders. In this regard, the Directors noted that fixed income and index trading provide limited opportunities for soft dollars. In addition, the Directors determined that the fund administration fees paid by the Portfolios to the Adviser are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs of providing the services, the impact of the fees on the Portfolios’ overall operating expenses, and the necessity of the services for the Portfolios’ operations.

• Other Considerations: In approving the continuation of the investment advisory arrangements, the Board also considered the high quality of existing portfolio management personnel, who will continue to manage the Portfolios, and the Adviser’s overall portfolio management capabilities. The Board determined that the Adviser has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial and operational resources reasonably necessary to manage the Portfolios in a professional manner that is consistent with the best interests of the Portfolios and their shareholders. The Board also concluded that the Adviser has made a significant entrepreneurial commitment to the management and success of the Portfolios, including expense limitation undertakings, which could entail a substantial financial and professional commitment to the successful operation of the Portfolios.

Administration fees - The Portfolios have also entered into an Administrative Services Agreement with the Adviser in which the Adviser, at its expense, maintains certain of the Portfolios’ books and records and furnishes such office space, facilities, equipment, and clerical help as the Portfolios may reasonably require in the conduct of business. In addition, the Adviser pays for the services of all executive, administrative, clerical, and other personnel, including officers of the Portfolios, who are employees of Union Central. Expenses not expressly assumed by the Adviser under the Agreement will be paid by the Portfolios. A separate administrative service fee of 0.10% of average daily net assets on an annual basis will be imposed for these services.

102

Summit Mutual Funds, Inc. - Pinnacle Series   

NOTES TO FINANCIAL STATEMENTS   

NOTE 2 - TRANSACTIONS WITH AFFILIATES (continued)

Directors’ fees - Each director who is not affiliated with the Adviser receives fees from Summit Mutual Funds for service as a director. Members of the Board of Directors who are not affiliated with the Adviser are eligible to participate in a deferred compensation plan. The value of each director’s deferred compensation account will increase or decrease at the same rate as if it were invested in shares of the Scudder Money Market Fund.

Other - The Adviser is a wholly-owned subsidiary of The Union Central Life Insurance Company (“Union Central”). On January 1, 2006, Union Central converted from an Ohio mutual life insurance company to an Ohio stock life insurance company subsidiary of a new Ohio mutual insurance holding company. The newly formed Ohio mutual insurance holding company immediately merged with and into Ameritas Acacia Mutual Holding Company, a Nebraska mutual insurance holding company, pursuant to an Agreement and Plan of Merger dated January 28, 2005. Upon consummation of the merger, Ameritas Acacia Mutual Holding Company changed its name to UNIFI Mutual Holding Company, and Union Central became an indirect subsidiary of UNIFI Mutual Holding Company. Subject to the direction and authority of Summit Mutual Funds’ Board of Directors, the Adviser manages the investment and reinvestment of the assets of each Portfolio and provides administrative services and manages Summit Mutual Funds’ business affairs.

NOTE 3 - MULTIPLE CLASSES OF SHARES

On October 4, 2005, the Russell 2000 Small Cap Index Portfolio began offering a second class of shares (Class F). The Class F shares are subject to a Distribution and Shareholder Service Plan (“12b-1 Plan”), which was approved by the Funds’ Board of Directors effective August 15, 2005. The 12b-1 Plan provides that the Series’ Distributor, Ameritas Investment Corp., an affiliate of the advisor, shall receive a fee out of assets attributable to Class F shares for payments the Distributor makes to banks, financial planners, retirement plan service providers, broker/dealers and other institutions for distribution assistance and/or shareholder services in connection with the Class F shares. The fee shall be in an amount not to exceed on an annual basis 0.20% of the average daily net assets attributable to Class F shares. Since the fee is paid out of the assets attributable to Class F shares on an ongoing basis, over time the fee will increase the cost and reduce the return of an investment.

The two classes of shares represent interests in the same portfolio of investments, have the same rights, and are generally identical in all respects, except that each class bears its separate class-specific expenses, and has exclusive voting rights with respect to any matter on which a separate vote of any class is required. Income, non-class specific expenses, and realized/unrealized gains and losses are allocated to the respective classes on the basis of the relative daily net assets.

NOTE 4 - FUTURE ADOPTION OF NEW ACCOUNTING STANDARDS

On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes,” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required as of the date of the last Net Asset Value (“NAV”) calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and its impact on the financial statements has not yet been determined.

In September 2006, the Financial Accounting Standards Board issued its new Standard No. 157, “Fair Value Measurements,” (“FAS 157”). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier adoption is permitted. At this time, management is evaluating the implications of FAS 157 and its impact on the financial statements has not yet been determined.

103

Summit Mutual Funds, Inc. - Pinnacle Series

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Summit Mutual Funds, Inc.:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Summit Mutual Funds, Inc. - Pinnacle Series (the “Funds”), including the Zenith Portfolio, Bond Portfolio, S&P 500 Index Portfolio, S&P MidCap 400 Index Portfolio, Balanced Index Portfolio, Nasdaq-100 Index Portfolio, Russell 2000 Small Cap Index Portfolio, EAFE International Index Portfolio, and Lehman Aggregate Bond Index Portfolio, as of December 31, 2006, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds constituting Summit Mutual Funds, Inc. - Pinnacle Series as of December 31, 2006, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Chicago, Illinois

February 9, 2007

104

Summit Mutual Funds, Inc. - Pinnacle Series   

MANAGEMENT OF THE FUND   

		Directors and Officers
Independent Directors
				Number of
		Term of		Portfolios in	Other
	Position(s)	Office and		Fund Complex	Directorships
	with the	Length of	Principal Occupation(s)	Overseen by	Held by
Name, Age and Address(1)	Fund	Time Served	During Past Five Years	Director	Director
Theodore H. Emmerich	Director	Indefinite Term	Consultant	21	American Financial
(80)	and Chairman	Director since			Group
		1987
Yvonne L. Gray	Director	Indefinite Term	Executive Vice President/COO, United Way	21
(55)		Director	of Greater Cincinnati (Social Services
		since 1999	Provider); prior thereto, Vice President /
			Trust Operations Officer, Fifth Third Bank;
			former Audit Manager, Price Waterhouse
			(Accounting Firm)
Michael K. Keating	Director	Indefinite Term	Managing Director, Keating Vollmer	21
(51)		Director	& Co. LLC (Private Equity Investment Firm)
		since 2005
David C. Phillips	Director	Indefinite Term	Co-Founder, Cincinnati Works Inc.	21	Meridian
(68)		Director	(Job Placement); prior thereto, Chief		Bioscience, Inc.;
		since 2001	Executive Officer, Downtown Cincinnati		Cintas, Inc.
			Inc. (Economic Revitalization of Cincinnati)
Mary W. Sullivan	Director	Indefinite Term	Attorney, Peck, Shaffer & Williams	21	Franklin Savings
(50)		Director	LLP (Law Firm)		and Loan Co.; First
		since 2001			Franklin Corporation
Interested Director and Officers
				Number of
		Term of		Portfolios in	Other
	Position(s)	Office and		Fund Complex	Directorships
	with the	Length of	Principal Occupation(s)	Overseen by	Held by
Name, Age and Address(1)	Fund	Time Served	During Past Five Years	Director	Director
Steven R. Sutermeister*	Director,	Indefinite Term	Senior Vice President, Union Central;	21	Summit Investment
(52)	President and	Director	President and Chief Executive Officer,		Partners, Inc.; Union
	Chief Executive	since 1999	Adviser.		Central Mortgage
	Officer				Funding, Inc.
John F. Labmeier	Vice President	Indefinite Term	Vice President, Associate General	NA	NA
1876 Waycross Rd	and Secretary	Officer	Counsel and Assistant Secretary,
Cincinnati, OH 45240.		since 1990	Union Central; Vice President and
(57)			Secretary, Carillon Investments, Inc.;
			Secretary, Adviser
Thomas G. Knipper	Vice President,	Indefinite Term	Chief Compliance Officer and	NA	NA
(49)	Controller and	Officer	Treasurer, Adviser
	Chief Compliance	since 1995
	Officer
Gerald Q. Herbert	Treasurer	Indefinite Term	Director of Finance and Accounting,	NA	NA
(40)		Officer	Adviser; prior thereto, Controller,
		since 2005	General Factory Supplies Co.
John M. Lucas	Assistant	Indefinite Term	Second Vice President, Counsel and	NA	NA
1876 Waycross Rd.	Secretary	Officer	Assistant Secretary, Union Central
Cincinnati, OH 45240		since 1990
(55)

(1)	Except as otherwise indicated, the business of each listed person is 312 Walnut St., Ste. 2500, Cincinnati, OH 45202
*	Mr. Sutermeister may be considered to be an “interested person” of the Fund (within the meaning of the Investment Company Act of 1940) because of
	his affiliation with the Adviser.
Note - The Statement of Additional Information includes additional information about fund directors and is available without charge, upon request, by
	calling 1-877-546-FUND.

105

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Summit Mutual Funds, Inc. - Pinnacle Series

ANNUAL REPORT - TABLE OF CONTENTS

Financial Statements:
Inflation Protected Plus Portfolio	1
Lifestyle ETF Market Strategy Target Portfolio	6
Lifestyle ETF Market Strategy Conservative Portfolio	11
Lifestyle ETF Market Strategy Aggressive Portfolio	16
Natural Resources	21
Notes to Financial Statements	26
Report of Independent Registered Public Accounting Firm	30

Important Considerations about Investing in Summit Mutual Funds

A description of the policies and procedures that the Portfolios use to determine how to vote proxies relating to portfolio securities and information regarding how the Portfolios voted portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-877-546-FUND, or on the Portfolios' website at www.summitfunds.com, or on t h e Securities and Exchange Commission's website at www.sec.gov.

The Portfolios file a complete Schedule of Investments in Securities with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Portfolios’ Form N-Q is available on the SEC’s website at www.sec.gov. The Portfolios’ Form N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Mutual fund investing involves risk. Principal loss is possible.

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.

Summit Mutual Funds, Inc. - Pinnacle Series

FINANCIAL HIGHLIGHTS

	Inflation Protected Plus
	Portfolio
	Period Ended December 31,
	2006 (1)
Net asset value, beginning of period	$50.00
I NV ESTMENT ACTIVITIES:
Net investment income / (loss)	-
Net realized and unrealized gains / (losses)	0.09
Total from Investment Activities	0.09
DISTRIBUTIONS:
Net investment income	-
Net realized gains	-
Total Distributions	-
Net asset value, end of period	$50.09
Total return	0.18%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net 2) (	0.75%(3)
Ratio of expenses to average net assets - gross	33.70%(3)
Ratio of net investment income / (loss) to average net assets	(2.28%) (3)
Portfolio turnover rate	0.00%
Net assets, end of period (000's)	$1,002

1) (	Portfolio commenced operations on December 28, 2006.
2) (	Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.
3) (	Annualized.

The accompanying notes are an integral part of the financi al statements.

1

Summit Mutual Funds, Inc. - Pinnacle Series
Schedule of Investments
December 31, 2006
Inflation Protected Plus Portfolio
	Principal
	Amount		Value
U.S. TREASURY OBLIGATIONS (b) - 98.9%
U.S. Treasury Bonds - 26.2%
3.875%, 04/15/2029	$	208,719	$	262,838
U.S. Treasury Notes - 72.7%
3.625%, 01/15/2008		43,727		44,193
3.875%, 01/15/2009		49,228		50,582
4.250%, 01/15/2010		95,972		101,011
0.8750%, 04/15/2010		53,270		50,502
3.500%, 01/15/2011		69,580		72,434
3.000%, 07/15/2012		78,579		80,866
2.000%, 01/15/2014		174,774		169,777
1.875%, 07/15/2015		166,026		159,106
				728,471
TOTAL U.S. TREASURY OBLIGATIONS (Cost $989,266)				991,309
		Shares		Value
SHORT TERM INVESTMENTS - 0.0%
Money Market Funds - 0.0%
Northern Institutional Diversified Assets Portfolio		10	$	10
TOTAL SHORT TERM INVESTMENTS (Cost $10)				10
Total Investments (Cost $989,276) (a) - 98.9%				991,319
Other Assets in Excess of Liabilities - 1.1%				10,536
TOTAL NET ASSETS - 100.0%			$	1,001,855

(a)	For federal income tax purposes, cost is $989,276 and gross unrealized appreciation and depreciation of
	securities as of December 31, 2006, was $2,043 and $0 respectively, with a net
	appreciation / (depreciation) of $2,043.
(b)	In flation protected security.

The accompanying notes are in integral part of the financial statements.

2

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
	Inflation Protected
	Plus Portfolio
ASSETS
Investments in securities, at value	$	991,319
Receivables:
Interest and dividends		10,598
Receivable from adviser		2,672
		1,004,589
LIABILITIES
Payables:
Fund accounting fees		205
Professional fees		2,434
Custodian fees		35
Administration fees		8
Other accrued expenses		52
		2,734
NET ASSETS*
Paid-in capital		999,812
Net unrealized appreciation / (depreciation) on
investments		2,043
	$	1,001,855
Investments at cost	$	989,276
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$1,001,855	20,000	$50.09

* FEDERAL TAX DATA AS OF DECEMBER 31, 2006
Undistributed ordinary income	$	-
Undistributed long-term gains	$	-
Unrealized appreciation	$	2,043

The accompanying notes are an integral part of the financi al statements.

3

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF OPERATIONS
For the period ended December 31, 2006 (1)
	Inflation Protected
	Plus Portfolio
INVESTMENT INCOME
Interest	$	222
Deflationary income adjustments		(348	)
		(126	)
EXPENSES
Fund accounting fees		205
Professional fees		2,434
Transfer agent fees		42
Advisory fees		41
Custodian fees		35
Administration fees		8
Directors' fees		1
Shareholder reporting fees		1
Other expenses		9
		2,776
Reimbursements and waivers		2 ( ,714	)
		62
NET INVESTMENT INCOME / (LOSS)		(188	)
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		-
Net change in unrealized appreciation / (depreciation) on
investments		2,043
NET REALIZED AND UNREALIZED GAIN / (LOSS)		2,043
NET INCREASE / (DECREASE) IN NET ASSETS
FROM OPERATIONS	$	1,855

TRANSACTIONS WITH AFFILIATES:
Percent of Current Net Asset Value
			Reimbursements and
Advisory Fee	Administration Fee	Expense Limit	Waivers
0.50%	0.10%	0.75%	$2,714
(1) Portfolio commenced operations on December 28, 2006.

The accompanying notes are an integral part of the financi al statements.

4

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF CHANGES IN NET ASSETS
Inflation Protected Plus Portfolio
Period Ended December 31,
	2006 (1)
OPERATIONS
Net investment income / (loss)	$	(188	)
Net realized gain / (loss) on investments		-
Net change in unrealized appreciation / (depreciation)
on investments		2,043
		1,855
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		-
Net realized gain on investments		-
		-
FUND SHARE TRANSACTIONS
Proceeds from shares sold		1,000,000
Reinvestment of distributions		-
Payments for shares redeemed		-
		1,000,000
NET INCREASE / (DECREASE) IN NET ASSETS		1,001,855
NET ASSETS
Beginning of period		-
End of period	$	1,001,855
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME	$	-

FUND SHARE TRANSACTIONS
Sold	20,000
Reinvestment of distributions	-
Redeemed	-
Net increase / (decrease) from fund share transactions	20,000
TOTAL COST OF PURCHASE S OF:
U.S. Government Securities	$	989,624
	$	989,624
TOTAL PROCEEDS FROM SALES OF:
U.S. Government Securities	$	-
	$	-
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	-
Long-term capital gains		-
	$	-
(1) Portfolio commenced operations on December 28, 2006.

The accompanying notes are an integral part of the financi al statements.

5

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL HIGHLIGHTS
	Lifestyle ETF
	Market Strategy
	Target Portfolio
Period Ended December 31,
	2006 ( 1)
Net asset value, beginning of period	$	50.00
NV I ESTMENT ACTIVITIES:
Net investment income / (loss)		-
Net realized and unrealized gains / (losses)		(0.16	)
Total from Investment Activities		(0.16	)
DISTRIBUTIONS:
Net investment income		-
Net realized gains		-
Total Distributions		-
Net asset value, end of period	$	49.84
Total return		-0.32	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net ( 2)		0.75%(3	)
Ratio of expenses to average net assets - gross		220.56%(3	)
Ratio of net investment income / (loss) to average net assets		(0.59%(3	))
Portfolio turnover rate		0.00	%
Net assets, end of period (000's)	$	150

¹⁾ ( Portfolio commenced operations on December 28, 2006.

²⁾ ( Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

³⁾ ( Annualized.

The accompanying notes are an integral part of the financi al statements.

6

Summit Mutual Funds, Inc. - Pinnacle Series
Schedule of Investments
December 31, 2006
Lifestyle ETF Maket Strategy Target Portfolio
	Shares		Value
INVESTMENT COMPANIES - 94.0%
iShares Lehman Aggregate Bond Fund		301	$	30,010
iShares Lehman U.S. Treasury Inflation Protected Securities Fund		30		2,964
iShares MSCI EAFE Index Fund		306		22,405
iShares Russell 2000 Index Fund		57		4,449
iShares S&P 500 Growth Index Fund		552		35,831
iShares S&P 500 Value Index Fund		388		29,833
Midcap SPDR Trust Series 1		41		6,010
Summit High Yield Bond Fund (b)		260		7,500
Vanguard REIT ETF		20		1,540
TOTAL INVESTME NT COMPANIES (Cost $141,021)				140,542
SHORT TERM INVESTMENTS - 100.3%
Money Market Funds - 97.0%
Northern Institutional Diversified Assets Portfolio		145,051		145,051
		Principal
		Amount		Value
U.S. Treasury Bills - 3.3%
4.840%, 03/15/2007	$	5,000	$	4,952
TOTAL SHORT TERM INVESTMENTS (Cost $150,002)				150,003
Total Investments (Cost $291,023) (a) - 194.3%				290,545
Liabilities in Excess of Other Assets - (94.3)%				(141,030	)
TOTAL NET ASSETS - 100.0%			$	149,515

(a)	For federal income tax purposes, cost is $291,023 and gross unrealized appreciation and depreciation of
	securities as of December 31, 2006, was $8 and ($486) respectively, with a net appreciation / (depreciation) of ($478).
(b)	Affiliated issuer. Affiliated issuers, as defined under the 1940 Act, include any Fund of Summit Mutual Funds, Inc.
	and any issuer in which the Portfolio's holdings of an issuer represent 5% or more of the outstanding voting securities
	of the issuer. A summary of transactions in the securities of these issuers during the period ended December 31,
	2006, is a follows:

	Balance of Shares			Balance of Shares		Investment Income
	Held Dec. 28,	Gross Purchases	Gross Sales and	Held Dec. 31,	Value Dec. 31,	Dec. 28, 2006-
Fund	2006	and Additions	Reductions	2006	2006	Dec. 31, 2006
Summit High Yield Bond Fund	-	260	-	260	$7,500	-

The accompanying notes are in integral part of the financial statements.

7

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
	Lifestyle ETF
	Market Strategy
	Target Portfolio
ASSETS
Investments in securities, at value
Unaffiliated issuers	$	283,045
Affiliated issuers		7,500
Receivable from adviser		2,694
		293,239
LIABILITIES
Payables:
Investment securities purchased		141,021
Fund accounting fees		205
Professional fees		2,416
Custodian fees		29
Other accrued expenses		53
		143,724
NET ASSETS*
Paid-in capital		149,993
Net unrealized appreciation / (depreciation) on
investments		(478	)
	$	149,515
Investments at cost
Unaffiliated issuers	$	283,523
Affiliated issuers		7,500
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$149,515	3,000	$49.84

* FEDERAL TAX DATA AS OF DECEMBER 31, 2006
Undistributed ordinary income	$	-
Undistributed long-term gains	$	-

The accompanying notes are an integral part of the financi al statements.

8

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF OPERATIONS
For the period ended December 31, 2006 (1)
	Lifestyle ETF
	Market Strategy
	Target Portfolio
INVESTMENT INCOME
Interest	$	2
EXPENSES
Fund accounting fees		205
Professional fees		2,416
Transfer agent fees		42
Custodian fees		29
Advisory fees		7
Administration fees		1
Directors' fees		1
Shareholder reporting fees		1
Other expenses		8
		2,710
Reimbursements and waivers		(2,701	)
		9
NET INVESTMENT INCOME / (LOSS)		(7	)
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		-
Net change in unrealized appreciation / (depreciation) on
investments		(478	)
NET REALIZED AND UNREALIZED GAIN / (LOSS)		(478	)
NET INCREASE / (DECREASE) IN NET ASSETS
FROM OPERATIONS	$	(485	)

TRANSACTIONS WITH AFFILIATES:
Percent of Current Net Asset Value
			Reimbursements and
Advisory Fee	Administration Fee	Expense Limit	Waivers
0.55%	0.10%	0.75%	$2,701
(1) Portfolio commenced operations on December 28, 2006.

The accompanying notes are an integral part of the financi al statements.

9

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF CHANGES IN NET ASSETS
Lifestyle ETF Market Strategy
	Target Portfolio
Period Ended December 31,
	2006(1)
OPERATIONS
Net investment income / (loss)	$	(7	)
Net realized gain / (loss) on investments		-
Net change in unrealized appreciation / (depreciation)
on investments		(478	)
		( 485	)
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		-
Net realized gain on investments		-
		-
FUND SHARE TRANSACTIONS
Proceeds from shares sold		150,000
Reinvestment of distributions		-
Payments for shares redeemed		-
		150,000
NET INCREASE / (DECREASE) IN NET ASSETS		149,515
NET ASSETS
Beginning of period		-
End of period	$	149,515
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME	$	-
FUND SHARE TRANSACTIONS
Sold		3,000
Reinvestment of distributions		-
Redeemed		-
Net increase / (decrease) from fund share transactions		3,000
TOTAL COST OF PURCHASE S OF:
Investment Companies	$	141,021
	$	141,021
TOTAL PROCEEDS FROM SALES OF:
Investment Companies	$	-
	$	-
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	-
Long-term capital gains		-
	$	-
(1) Portfolio commenced operations on December 28, 2006.
The accompanying notes are an integral part of the financi al statements.

10

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL HIGHLIGHTS
		Lifestyle ETF
		Market Strategy
	Conservative Portfolio
Period Ended December 31,
		2006 ( 1)
Net asset value, beginning of period		$	50.00
NV I ESTMENT ACTIVITIES:
Net investment income / (loss)			-
Net realized and unrealized gains / (losses)			(0.11	)
Total from Investment Activities			(0.11	)
DISTRIBUTIONS:
Net investment income			-
Net realized gains			-
Total Distributions			-
Net asset value, end of period		$	49.89
Total return			-0.22	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net ( 2)			0.75%(3	)
Ratio of expenses to average net assets - gross			220.34%(3	)
Ratio of net investment income / (loss) to average net assets			(0.52%(3	))
Portfolio turnover rate			0.00	%
Net assets, end of period (000's)		$	150

¹⁾ ( Portfolio commenced operations on December 28, 2006.

²⁾ ( Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

³⁾ ( Annualized.

The accompanying notes are an integral part of the financi al statements.

11

Summit Mutual Funds, Inc. - Pinnacle Series
Schedule of Investments
December 31, 2006
Lifestyle ETF Market Strategy Conservative Portfolio
	Shares		Value
INVESTMENT COMPANIES - 91.0%
iShares Lehman Aggregate Bond Fund		595	$	59,322
iShares Lehman U.S. Treasury Inflation Protected Securities Fund		53		5,236
iShares MSCI EAFE Index Fund		201		14,717
iShares Russell 2000 Index Fund		37		2,888
iShares S&P 500 Growth Index Fund		362		23,498
iShares S&P 500 Value Index Fund		255		19,607
Midcap SPDR Trust Series 1		27		3,958
Summit High Yield Bond Fund (b)		208		6,000
Vanguard REIT ETF		13		1,001
TOTAL INVESTME NT COMPANIES (Cost $136,553)				136,227
SHORT TERM INVESTMENTS - 100.2%
Money Market Funds - 95.6%
Northern Institutional Diversified Assets Portfolio		143,071		143,071
		Principal
		Amount		Value
U.S. Treasury Bills - 4.6%
4.840%, 03/15/2007	$	7,000	$	6,933
TOTAL SHORT TERM INVESTMENTS (Cost $150,003)				150,004
Total Investments (Cost $286,556) (a) - 191.2%				286,231
Liabilities in Excess of Other Assets - (91.2)%				(136,562	)
TOTAL NET ASSETS - 100.0%			$	149,669

(a)	For federal income tax purposes, cost is $286,556 and gross unrealized appreciation and depreciation of
	securities as of December 31, 2006, was $5 and ($330) respectively, with a net appreciation / (depreciation) of ($325).
(b)	Affiliated issuer. Affiliated issuers, as defined under the 1940 Act, include any Fund of Summit Mutual Funds, Inc.
	and any issuer in which the Portfolio's holdings of an issuer represent 5% or more of the outstanding voting securities
	of the issuer. A summary of transactions in the securities of these issuers during the period ended December 31,
	2006, is a follows:

	Balance of Shares			Balance of Shares		Investment Income
	Held Dec. 28,	Gross Purchases	Gross Sales and	Held Dec. 31,	Value Dec. 31,	Dec. 28, 2006-
Fund	2006	and Additions	Reductions	2006	2006	Dec. 31, 2006
Summit High Yield Bond Fund	-	208	-	208	$6,000	-
The accompanying notes are in integral part of the financial statements.

12

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
		Lifestyle ETF
		Market Strategy
	Conservative Portfolio
ASSETS
Investments in securities, at value
Unaffiliated issuers		$	280,231
Affiliated issuers			6,000
Receivable from adviser			2,694
			288,925
LIABILITIES
Payables:
Investment securities purchased			136,553
Fund accounting fees			205
Professional fees			2,416
Custodian fees			30
Other accrued expenses			52
			139,256
NET ASSETS*
Paid-in capital			149,994
Net unrealized appreciation / (depreciation) on
investments			(325	)
		$	149,669
Investments at cost
Unaffiliated issuers		$	280,556
Affiliated issuers			6,000
Shares authorized ($.10 par value)			20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$149,669	3,000	$49.89

* FEDERAL TAX DATA AS OF DECEMBER 31, 2006
Undistributed ordinary income	$	-
Undistributed long-term gains	$	-

The accompanying notes are an integral part of the financi al statements.

13

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF OPERATIONS
For the period ended December 31, 2006 (1)
		Lifestyle ETF
		Market Strategy
	Conservative Portfolio
INVESTMENT INCOME
Interest		$	3
EXPENSES
Fund accounting fees			204
Professional fees			2,416
Transfer agent fees			42
Custodian fees			30
Advisory fees			7
Administration fees			1
Directors' fees			1
Shareholder reporting fees			1
Other expenses			8
			2,710
Reimbursements and waivers			2 ( ,701	)
			9
NET INVESTMENT INCOME / (LOSS)			(6	)
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments			-
Net change in unrealized appreciation / (depreciation) on
investments			(325	)
NET REALIZED AND UNREALIZED GAIN / (LOSS)			(325	)
NET INCREASE / (DECREASE) IN NET ASSETS
FROM OPERATIONS		$	(331	)

TRANSACTIONS WITH AFFILIATES:
Percent of Current Net Asset Value
			Reimbursements and
Advisory Fee	Administration Fee	Expense Limit	Waivers
0.55%	0.10%	0.75%	$2,701
(1) Portfolio commenced operations on December 28, 2006.

The accompanying notes are an integral part of the financi al statements.

14

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF CHANGES IN NET ASSETS
Lifestyle ETF Market Strategy
	Conservative Portfolio
Period Ended December 31,
		2006( 1)
OPERATIONS
Net investment income / (loss)		$	(6	)
Net realized gain / (loss) on investments			-
Net change in unrealized appreciation / (depreciation)
on investments			(325	)
			(331	)
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income			-
Net realized gain on investments			-
			-
FUND SHARE TRANSACTIONS
Proceeds from shares sold			150,000
Reinvestment of distributions			-
Payments for shares redeemed			-
			150,000
NET INCREASE / (DECREASE) IN NET ASSETS			149,669
NET ASSETS
Beginning of period			-
End of period		$	149,669
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME		$	-
FUND SHARE TRANSACTIONS
Sold			3,000
Reinvestment of distributions			-
Redeemed			-
Net increase / (decrease) from fund share transactions			3,000
TOTAL COST OF PURCHASE S OF:
Investment Companies		$	136,553
		$	136,553
TOTAL PROCEEDS FROM SALES OF:
Investment Companies		$	-
		$	-
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income		$	-
Long-term capital gains			-
		$	-
(1) Portfolio commenced operations on December 28, 2006.
The accompanying notes are an integral part of the financi al statements.

15

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL HIGHLIGHTS
	Lifestyle ETF
	Market Strategy
	Aggressive Portfolio
Period Ended December 31,
	2006 ( 1)
Net asset value, beginning of period	$	50.00
NV I ESTMENT ACTIVITIES:
Net investment income / (loss)		-
Net realized and unrealized gains / (losses)		(0.21	)
Total from Investment Activities		(0.21	)
DISTRIBUTIONS:
Net investment income		-
Net realized gains		-
Total Distributions		-
Net asset value, end of period	$	49.79
Total return		-0.42	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net ( 2)		0.75%(3	)
Ratio of expenses to average net assets - gross		220.77%(3	)
Ratio of net investment income / (loss) to average net assets		(0.72%(3	))
Portfolio turnover rate		0.00	%
Net assets, end of period (000's)	$	149
1) ( Portfolio commenced operations on December 28, 2006.
2) ( Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.
3) ( Annualized.
The accompanying notes are an integral part of the financi al statements.

16

Summit Mutual Funds, Inc. - Pinnacle Series
Schedule of Investments
December 31, 2006
ETF Market Strategy Aggressive Portfolio
	Shares		Value
INVESTMENT COMPANIES - 98.1%
iShares Lehman Aggregate Bond Fund		100	$	9,970
iShares Lehman U.S. Treasury Inflation Protected Securities Fund		10		988
iShares MSCI EAFE Index Fund		402		29,434
iShares Russell 2000 Index Fund		75		5,854
iShares S&P 500 Growth Index Fund		725		47,060
iShares S&P 500 Value Index Fund		509		39,137
Midcap SPDR Trust Series 1		53		7,770
Summit High Yield Bond Fund (b)		149		4,300
Vanguard REIT ETF		26		2,002
TOTAL INVESTME NT COMPANIES (Cost $147,134)				146,515
SHORT TERM INVESTMENTS - 100.4%
Money Market Funds - 99.7%
Northern Institutional Diversified Assets Portfolio		149,010		149,010
		Principal
		Amount		Value
U.S. TREASURY OBLIGATIONS - 0.7%
U.S. Treasury Bills
4.840%, 03/15/2007	$	1,000	$	990
TOTAL SHORT TERM INVESTMENTS (Cost $150,000)				150,000
Total Investments (Cost $297,134) (a) - 198.5%				296,515
Liabilities in Excess of Other Assets - (98.5)%				(147,142	)
TOTAL NET ASSETS - 100.0%			$	149,373

(a)	For federal income tax purposes, cost is $297,134 and gross unrealized appreciation and depreciation of
	securities as of December 31, 2006, was $9 and ($628) respectively, with a net appreciation / (depreciation) of ($619).
(b)
	Affiliated issuer. Affiliated issuers, as defined under the 1940 Act, include any Fund of Summit Mutual Funds, Inc. and any issuer in
	which the Portfolio's holdings of an issuer represent 5% or more of the outstanding voting securities of the issuer.	A summary of
	t ra nsactions in the securities of these issuers during the period ended December 31, 2006, is a follows:

	Balance of Shares			Balance of Shares		Investment Income
	Held Dec. 28,	Gross Purchases	Gross Sales and	Held Dec. 31,	Value Dec. 31,	Dec. 28, 2006-
Fund	2006	and Additions	Reductions	2006	2006	Dec. 31, 2006
Summit High Yield Bond Fund	-	149	-	149	$4,300	-

The accompanying notes are in integral part of the financial statements.

17

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
	Lifestyle ETF
	Market Strategy
	Aggressive Portfolio
ASSETS
Investments in securities, at value
Unaffiliated issuers	$	292,215
Affiliated issuers		4,300
Receivable from adviser		2,694
		299,209
LIABILITIES
Payables:
Investment securities purchased		147,133
Fund accounting fees		205
Professional fees		2,416
Custodian fees		30
Other accrued expenses		52
		149,836
NET ASSETS*
Paid-in capital		149,992
Net unrealized appreciation / (depreciation) on
investments		(619	)
	$	149,373
Investments at cost
Unaffiliated issuers	$	292,834
Affiliated issuers		4,300
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$149,373	3,000	$49.79

* FEDERAL TAX DATA AS OF DECEMBER 31, 2006
Undistributed ordinary income	$	-
Undistributed long-term gains	$	-

The accompanying notes are an integral part of the financi al statements.

18

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF OPERATIONS
For the period ended December 31, 2006 (1)
	Lifestyle ETF
	Market Strategy
	Aggressive Portfolio
INVESTMENT INCOME
Interest	$	1
EXPENSES
Fund accounting fees		205
Professional fees		2,416
Transfer agent fees		42
Custodian fees		30
Advisory fees		7
Administration fees		1
Directors' fees		1
Other expenses		8
		2,710
Reimbursements and waivers		2 ( ,701	)
		9
NET INVESTMENT INCOME / (LOSS)		(8	)
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		-
Net change in unrealized appreciation / (depreciation) on
investments		(619	)
NET REALIZED AND UNREALIZED GAIN / (LOSS)		(619	)
NET INCREASE / (DECREASE) IN NET ASSETS
FROM OPERATIONS	$	(627	)

TRANSACTIONS WITH AFFILIATES:
Percent of Current Net Asset Value
			Reimbursements and
Advisory Fee	Administration Fee	Expense Limit	Waivers
0.55%	0.10%	0.75%	$2,701
(1) Portfolio commenced operations on December 28, 2006.

The accompanying notes are an integral part of the financi al statements.

19

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF CHANGES IN NET ASSETS
Lifestyle ETF Market Strategy
	Aggressive Portfolio
Period Ended December 31,
		2006( 1)
OPERATIONS
Net investment income / (loss)		$	(8	)
Net realized gain / (loss) on investments			-
Net change in unrealized appreciation / (depreciation)
on investments			(619	)
			(627	)
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income			-
Net realized gain on investments			-
			-
FUND SHARE TRANSACTIONS
Proceeds from shares sold			150,000
Reinvestment of distributions			-
Payments for shares redeemed			-
			150,000
NET INCREASE / (DECREASE) IN NET ASSETS			149,373
NET ASSETS
Beginning of period			-
End of period		$	149,373
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME		$	-
FUND SHARE TRANSACTIONS
Sold			3,000
Reinvestment of distributions			-
Redeemed			-
Net increase / (decrease) from fund share transactions			3,000
TOTAL COST OF PURCHASE S OF:
Investment Companies		$	147,134
		$	147,134
TOTAL PROCEEDS FROM SALES OF:
Investment Companies		$	-
		$	-
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income		$	-
Long-term capital gains			-
		$	-
(1) Portfolio commenced operations on December 28, 2006.
The accompanying notes are an integral part of the financi al statements.

20

Summit Mutual Funds, Inc. - Pinnacle Series
FINANCIAL HIGHLIGHTS
Natural Resources Portfolio
Period Ended December 31,
	2006 ( 1)
Net asset value, beginning of period	$	50.00
I NV ESTMENT ACTIVITIES:
Net investment income / (loss)		-
Net realized and unrealized gains / (losses)		(0.02	)
Total from Investment Activities		(0.02	)
DISTRIBUTIONS:
Net investment income		-
Net realized gains		-
Total Distributions		-
Net asset value, end of period	$	49.98
Total return		-0.04	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net ( 2)		0.75	%(3)
Ratio of expenses to average net assets - gross		133.46	%(3)
Ratio of net investment income / (loss) to average net assets		(0.75	)%(3)
Portfolio turnover rate		0.00	%
Net assets, end of period (000's)	$	250

⁽¹⁾ Portfolio commenced operations on December 28, 2006.

⁽²⁾ Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

⁽³⁾ Annualized.

The accompanying notes are an integral part of the financi al statements.

21

Summit Mutual Funds, Inc. - Pinnacle Series
Schedule of Investments
December 31, 2006
Natural Resources Portfolio
	Shares		Value
INVESTMENT COMPANIES - 99.8%
iPath Dow Jones - AIG Commodity Index Total Return ETN (a)		1,227	$	60,049
iShares Goldman Sachs Natural Resources Index Fund		428		43,485
Powershares DB Commodity Index Tracking Fund		2,446		60,123
Vanguard Materials ETF		528		37,340
Vanguard REIT ETF		627		48,279
TOTAL INVESTME NT COMPANIES (Cost $249,336)				249,276
SHORT TERM INVESTMENTS - 100.0%
Money Market Funds - 100.0%
Northern Institutional Diversified Assets Portfolio		250,000		250,000
TOTAL SHORT TERM INVESTMENTS (Cost $250,000)				250,000
Total Investments (Cost $499,336) (b) - 199.8%				499,276
Liabilities in Excess of Other Assets - (99.8)%				(249,352	)
TOTAL NET ASSETS - 100.0%			$	249,924

(a)	Non income producing security.
(b)	For federal income tax purposes, cost is $499,336 and gross unrealized appreciation and depreciation of
	securities as of December 31, 2006, was $564 and ($624) respectively, with a net
	appreciation / (depreciation) of ($60).
The accompanying notes are in integral part of the financial statements.

22

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
	Natural Resources
	Portfolio
ASSETS
Investments in securities, at value	$	499,276
Receivable from adviser		2,714
		501,990
LIABILITIES
Payables:
Investment securities purchased		249,336
Fund accounting fees		205
Professional fees		2,440
Custodian fees		30
Other accrued expenses		55
		252,066
NET ASSETS*
Paid-in capital		249,984
Net unrealized appreciation / (depreciation) on
investments		(60	)
	$	249,924
Investments at cost	$	499,336
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares
Share Class	Net Assets	Outstanding
Class I	$249,924	5,000	$49.98

* FEDERAL TAX DATA AS OF DECEMBER 31, 2006
Undistributed ordinary income	$	-
Undistributed long-term gains	$	-

The accompanying notes are an integral part of the financi al statements.

23

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENT OF OPERATIONS
For the period ended December 31, 2006 (1)
	Natural Resources
	Portfolio
INVESTMENT INCOME
	$	-
EXPENSES
Fund accounting fees		205
Professional fees		2,440
Transfer agent fees		42
Custodian fees		30
Advisory fees		11
Administration fees		2
Directors' fees		1
Shareholder reporting fees		1
Other expenses		9
		2,741
Reimbursements and waivers		2 ( ,725	)
		16
NET INVESTMENT INCOME / (LOSS)		(16	)
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		-
Net change in unrealized appreciation / (depreciation) on
investments		(60	)
NET REALIZED AND UNREALIZED GAIN / (LOSS)		(60	)
NET INCREASE / (DECREASE) IN NET ASSETS
FROM OPERATIONS	$	(76	)

TRANSACTIONS WITH AFFILIATES:
Percent of Current Net Asset Value
		Reimbursements and
Advisory Fee Administration Fee	Expense Limit	Waivers
0.55% 0.10%	0.75%	$2,725
(1) Portfolio commenced operations on December 28, 2006.
The accompanying notes are an integral part of the financial statements.

24

Summit Mutual Funds, Inc. - Pinnacle Series
STATEMENTS OF CHANGES IN NET ASSETS
Natural Resources Portfolio
Period Ended December 31,
	2006( 1)
OPERATIONS
Net investment income / (loss)	$	(16	)
Net realized gain / (loss) on investments		-
Net change in unrealized appreciation / (depreciation)
on investments		(60	)
		(76	)
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		-
Net realized gain on investments		-
		-
FUND SHARE TRANSACTIONS
Proceeds from shares sold		250,000
Reinvestment of distributions		-
Payments for shares redeemed		-
		250,000
NET INCREASE / (DECREASE) IN NET ASSETS		249,924
NET ASSETS
Beginning of period		-
End of period	$	249,924
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME	$	-
FUND SHARE TRANSACTIONS
Sold		5,000
Reinvestment of distributions		-
Redeemed		-
Net increase / (decrease) from fund share transactions		5,000
TOTAL COST OF PURCHASE S OF:
Investment Companies	$	249,336
	$	249,336
TOTAL PROCEEDS FROM SALES OF:
Investment Companies	$	-
	$	-
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	-
Long-term capital gains		-
	$	-
(1) Portfolio commenced operations on December 28, 2006.
The accompanying notes are an integral part of the financi al statements.

25

SUMMIT MUTUAL FUNDS, INC.

NOTES TO FINANCIAL STATEMENTS

December 31, 2006

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

Summit Mutual Funds, Inc., (“Summit Mutual Funds”), is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, as an open-end management investment company. Summit Mutual Funds offers the Pinnacle Series and the Apex Series. The shares of the Pinnacle Series (the “Series”) are sold to insurance companies and their separate accounts to fund the benefits under certain variable i n surance products. The results of the Series presented exclude the additional fees and expenses of variable annuity or variable life insurance contracts. The Series' shares are offered in fourteen different portfolios: Zenith Portfolio, Bond Portfolio, S&P 500 Index Portfolio, S&P MidCap 400 Index Portfolio, Balanced Index Portfolio, Nasdaq-100 Index Portfolio, Russell 2000 Small Cap Index Portfolio, EAFE International Index Portfolio, Lehman Aggregate Bond Index Portfolio, Inflation Protected Plus Portfolio, Lifestyle ETF Market Strategy Target Portfolio, Lifestyle ETF Market Strategy Conservative Portfolio, Lifestyle ETF Market Strategy Aggressive Portfolio, and Natural Resources Portfolio (individually a “Portfolio”, collectively the “Portfolios”). 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, n i vestment-grade corporate bonds. The S&P 500 Index Portfolio, S&P MidCap 400 Index Portfolio, Nasdaq-100 Index Portfolio, Russell 2000 Small Cap Index Portfolio, and EAFE International Index Portfolio seek investment results that correspond to the total return performance of common stocks as represented by their respective index. The Balanced Index Portfolio seeks investment results, with respect to 60% of its assets, that correspond to the o t tal return performance of U.S. common stocks, as represented by the S&P 500 Index and, with respect to 40% of its assets, that correspond to the total return performance of investment-grade bonds, as represented by the Lehman Brothers Aggregate Bond Index. The Lehman Aggregate Bond Index Portfolio seeks investment results that correspond to the total return performance of the bond market, as represented by the Lehman Brothers Aggregate Bond Index. The Inflation Protected Plus Portfolio seeks to maximize real levels of current income consistent with reasonable investment risk, by i n vesting primarily in inflation-indexed, fixed-income securities. The Lifestyle ETF Market Strategy Target Portfolio seeks primarily to provide capital growth and, secondarily, investment income by investing primarily in a portfolio of various exchange traded funds, (“ETFs”), representing different market exposures. The Lifestyle ETF Market Strategy Conservative Portfolio seeks primarily to provide capital growth and, secondarily, investment n i come, while managing risk levels to a more conservative level as compared to the Lifestyle ETF Market Strategy Target Portfolio, by investing primarily in a portfolio of various ETFs representing different market exposures. The Lifestyle ETF Market Strategy Aggressive Portfolio seeks primarily to provide capital growth and, secondarily, investment income, while managing risk levels to a more aggressive level as compared to the Lifestyle ETF Market Strategy Target Portfolio, by investing primarily in a portfolio of ETFs representing different market exposures. The Natural Resources Portfolio seeks primarily to provide capital growth, consistent with appropriate risk levels, by investing primarily in a portfolio of various ETFs and exchange traded notes representing different natural resources exposures. The results of the Portfolio(s) for your investment product are n i cluded herein. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 Global Market or NASDAQ Global Select Market, 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. Alternatively, NASDAQ listed securities may be valued on the basis of the NASDAQ Official Closing Price. 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. 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. Examples of valuation bases and factors used to determine securities’ fair value include: a multiple of earnings, a discounted value from freely-traded similar securities, relative yield to maturity calculations, market values for similar securities, utilization of the fair value information service of FT Interactive Data, or a combination of these or other methods. Additionally, general market risk, and credit, yield and other risks particular to a given issue and other factors are considered. Money market instruments with a remaining maturity of 60 days or less held in each Portfolio are valued at amortized cost which approximates market value.

Securities transactions and investment income -S ecurities 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 and premium 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. Paydown gains and losses on mortgage and asset-backed securities are presented as interest income.

Federal taxes -It is the intent of Summit Mutual Funds to comply with the requirements under Subchapter M of the Internal Revenue Code applicable t o 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 and held in connection with variable insurance products, are exempt from excise tax on undistributed income. Therefore, no provision for income or excise taxes has been recorded.

26

Distributions - Distributions from net investment income in all fixed income Portfolios generally are declared and paid quarterly. Equity Portfolios generally declare and pay dividends annually. 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 is determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles in the United States of America. These "book/tax" differences are considered either 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. The book/tax differences are primarily related to the tax deferral of losses on wash sales, Section 1256 Mark t o Market, paydowns on mortgage-backed securities, post-October capital losses, and partnership adjustments. Distributions which exceed net i n vestment income and net realized capital gains for financial reporting purposes but not for tax purposes are reported as distributions in excess of net i n vestment income or distributions in excess of net realized capital gains. To the extent they exceed net investment income and net realized capital gains for tax purposes, they are reported as distributions of paid-in-capital.

Expenses - Allocable expenses of Summit Mutual Funds are charged to each Portfolio based on the ratio of the net assets of each Portfolio to the combined net assets of Summit Mutual Funds. Nonallocable expenses are charged to each Portfolio based on specific identification.

Foreign Currency -Summit Mutual 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 New York Currency Market. Summit Mutual Funds does not isolate the portion of operational results relating to changes in foreign exchange rates on investments from underlying market price fluctuations. All such results are included in net realized and unrealized gain or loss for investments.

Foreign security and currency transactions may involve certain risks not typically associated with those of U.S. companies. Such risks include the level of governmental supervision and regulations of foreign securities markets and the possibility of political and economic instability.

Futures Contracts - TheS&P 500 Index Portfolio, S&P MidCap 400 Index Portfolio, Balanced Index Portfolio, Nasdaq-100 Index Portfolio, Russell 2000 Small Cap Index Portfolio, and EAFE International Index Portfolio (collectively, the “Index Portfolios”) as well as the Lifestyle ETF Market Strategy Target Portfolio, Lifestyle ETF Market Strategy Conservative Portfolio, Lifestyle ETF Market Strategy Aggressive Portfolio, and Natural Resources Portfolio (collectively, the “ETF Portfolios”) and Inflation Protected Plus Portfolio, may enter into futures contracts that relate to securities in which it may directly invest and indices composed of such securities and may purchase and write call and put options on such contracts. The Index Portfolios, ETF Portfolios, and Inflation Protected Plus Portfolio may invest up to 20% of their assets in such futures and/or options, except that until an Index Portfolio reaches $25 million (or $50 million in the case of the Nasdaq-100 Index Portfolio, the Russell 2000 Small Cap Index Portfolio, and the EAFE I n ternational Index Portfolio), 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 a Portfolio enters into a futures contract, it is required to deposit and maintain as collateral such n i itial margin as required by the exchange on which the contract is traded. Under terms of the contract, a Portfolio agrees 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 Index Portfolios invest in futures as a substitute to investing in the common stock positions in the Index that they intend to match. A potential risk to the Index Portfolios is that the change in t h e value of the underlying securities may not correlate to the value of the contracts.

Portfolio Securities Lending- The Portfolios currently lend their securities to approved borrowers to earn additional income and receive cash and/or securities as collateral to secure the loans. Income from securities lending is included in “Other Income” on the Statement of Operations. Collateral is maintained at not less than 100% of the current market value of loaned securities. Although the risk of lending is mitigated by the collateral, the Portfolios could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return them. In addition to cash collateral, the Portfolios may accept noncash collateral consisting of government securities and irrevocable letters of credit from domestically domiciled banks.

NOTE 2 - TRANSACTIONS WITH AFFILIATES

Investment Advisory fees -Summit Mutual Funds pays investment advisory fees to Summit Investment Partners, Inc. (the “Adviser”) under terms of an Investment Advisory Agreement (the “Agreement”). Certain officers and directors of the Adviser are affiliated with Summit Mutual Funds. Summit Mutual Funds pays the Adviser, as full compensation for all services and facilities furnished, a monthly fee computed separately for each Portfolio on a daily basis.

Approval of Advisory Contract (Unaudited) - At its November 14, 2006 meeting, the Board of Directors reviewed in detail written materials related to the proposed Portfolios’ investment advisory contracts. Following their review and consideration, the Directors determined that the i n vestment advisory contracts will enable shareholders of each Portfolio to obtain high quality services at a cost that is appropriate, reasonable, and i n the best interests of its shareholders. The Board of Directors, including the Independent Directors, unanimously approved each investment advisory contract. In reaching their decision, the Directors requested and obtained from the Adviser such information as they deemed reasonably

27

necessary to evaluate the proposed contracts. The Directors also carefully considered comparative fee and expense information prepared using data from Lipper, Inc. (“Lipper”), independent providers of mutual fund performance, fee and expense information; and profitability data. In considering the proposed investment advisory contracts, the Directors evaluated a number of considerations that they believed, in light of the legal advice furnished to them by legal counsel to the Portfolios and the Independent Directors and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:

•T he nature, extent and quality of the advisory services provided.T he Board concluded that the Adviser provides high quality services, as i n dicated by the nature and quality of services provided to other Portfolios in the past, other Portfolio’s competitive investment performance, the high level of correlation of the Index Portfolios to their benchmarks, the compliance track record of other Portfolios, the integrity, capability and professional experience of the Adviser’s personnel, and the Adviser’s financial resources. The Board concluded that the Adviser provides all facilities and services reasonably necessary to analyze, execute and maintain investments that are consistent with the Portfolios’ objectives, restrictions and limitations. The Board also determined that the Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to other Portfolios in the past, and that these services are appropriate in scope and extent in light of the Portfolios’ operations, the competitive landscape of the investment company business and investor needs.

•T he cost of advisory services provided and the level of profitability.T he Board examined the proposed investment advisory fees for each Portfolio, and noted that the Adviser charges 0.10% for administrative services. The Directors also reviewed the Adviser’s pre-tax operating i n come, gross revenues, margin (before and after dividends) for 2005 and the first three quarters of 2006, as well as other financial information relevant to an assessment of the Portfolios’ financial relationship with the Adviser. On the basis of this information, the Board concluded that, with respect to each Portfolio, the level of proposed investment advisory fees and fund administration fees is appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies, and the anticipated profitability of the relationship between each Portfolio and the Adviser and its affiliates. Further, on the basis of comparative information supplied by Lipper, the Board determined that the proposed advisory fees and estimated overall expense ratio of each Portfolio were favorable to or consistent with industry averages.

• Whether the advisory fees reflect economies of scale.T he Board determined that the Portfolios have yet to achieve meaningful economies of scale, which, therefore, cannot be reflected in the advisory fees. The Board concluded that the proposed advisory fees reflect the current economic environment for the Adviser and the competitive nature of the mutual fund market. The Directors also noted that Portfolio expenses will be managed by the use of fee caps and waivers, as certain of the Portfolios are small and have not reached the size necessary to provide the Adviser its full fee.

• The extent to which economies of scale will be realized as the Portfolios grow.W hile the advisory fees do not reduce should Portfolio assets grow meaningfully, the Board determined that the advisory fees payable under the advisory arrangements already reflect potential future economies of scale to some extent by virtue of their competitive levels and the Adviser’s profitability at current or foreseeable asset levels. The Board also concluded that it would have the opportunity to periodically re-examine whether a Portfolio had achieved economies of scale, and the appropriateness of advisory fees payable to the Adviser, in the future.

•B enefits (such as soft dollars) to the Adviser from their relationships with the Portfolios (and any corresponding benefits to the Portfolios). The Board determined that other benefits derived by the Adviser from its relationship with the Portfolios are reasonable and fair, and are consistent with industry practice and the best interest of the Portfolios and their shareholders. In this regard, the Directors noted that fixed i n come and index trading provide limited opportunities for soft dollars. In addition, the Directors determined that the proposed fund administration fees paid by the Portfolios to the Adviser are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs of providing the services, the impact of the fees on the Portfolios’ overall operating expenses, and the necessity of the services for the Portfolios’ operations.

• Other Considerations:In approving the investment advisory arrangements, the Board also considered the high quality of existing portfolio management personnel, who will manage the Portfolios, and the Adviser’s overall portfolio management capabilities. The Board determined that h t e Adviser has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial and operational resources reasonably necessary to manage the Portfolios in a professional manner that is consistent with the best interests of the Portfolios and their shareholders. The Board also concluded that the Adviser has made a significant entrepreneurial commitment to the management and success of the Portfolios, including expense limitation undertakings, which could entail a substantial financial and professional commitment to the successful operation of the Portfolios.

Administration fees- The Portfolios have also entered into an Administrative Services Agreement with the Adviser in which the Adviser, at its expense, maintains certain of the Portfolios’ books and records and furnishes such office space, facilities, equipment, and clerical help as the Portfolios may reasonably require in the conduct of business. In addition, the Adviser pays for the services of all executive, administrative, clerical, and other personnel, including officers of the Portfolios, who are employees of Union Central. Expenses not expressly assumed by the Adviser under the Agreement will be paid by the Portfolios. A separate administrative service fee of 0.10% of average daily net assets on an annual basis

will be imposed for these services.

28

Directors' fees - Each director who is not affiliated with the Adviser receives fees from Summit Mutual Funds for service as a director. Members of the Board of Directors who are not affiliated with the Adviser are eligible to participate in a deferred compensation plan. The value of each director's deferred compensation account will increase or decrease at the same rate as if it were invested in shares of the Scudder Money Market Fund.

Other - The Adviser is a wholly-owned subsidiary of The Union Central Life Insurance Company (“Union Central”). On January 1, 2006, Union Central converted from an Ohio mutual life insurance company to an Ohio stock life insurance company subsidiary of a new Ohio mutual insurance holding company. The newly formed Ohio mutual insurance holding company immediately merged with and into Ameritas Acacia Mutual Holding Company, a Nebraska mutual insurance holding company, pursuant to an Agreement and Plan of Merger dated January 28, 2005. Upon consummation of the merger, Ameritas Acacia Mutual Holding Company changed its name to UNIFI Mutual Holding Company, and Union Central became an indirect subsidiary of UNIFI Mutual Holding Company. Subject to the direction and authority of Summit Mutual Funds’ Board of Directors, the Adviser manages the investment and reinvestment of the assets of each Portfolio and provides administrative services and manages Summit Mutual Funds’ business affairs.

NOTE 3 - FUTURE ADOPTION OF NEW ACCOUNTING STANDARDS

On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes,” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required as of the date of the last Net Asset Value (“NAV”) calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and its impact on the financial statements has not yet been determined.

n I September 2006, the Financial Accounting Standards Board issued its new Standard No. 157, “Fair Value Measurements,” (“FAS 157”). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier adoption is permitted. At this time, management is evaluating the implications of FAS 157 and its impact on the financial statements has not yet been determined.

29

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Summit Mutual Funds, Inc.:

We have audited the accompanying statements of assets and liabilities, including the schedules of nv i estments, of Summit Mutual Funds, Inc. - Pinnacle Series (the “Funds”), including the Inflation Protected Plus Portfolio, Lifestyle ETF Market Strategy Target Portfolio, Lifestyle ETF Market Strategy Conservative Portfolio, Lifestyle ETF Market Strategy Aggressive Portfolio, and Natural Resources Portfolio, as of December 31, 2006, and the related statements of operations, the statements of changes in net assets, and the financial highlights for the period December 28, 2006 (inception date) through December 31, 2006. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their i n ternal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a e t st basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds constituting Summit Mutual Funds, Inc. - Pinnacle Series as of December 31, 2006, the results of their operations, the changes in their net assets, and the financial highlights for the period December 28, 2006 (inception date) through December 31, 2006, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Chicago, Illinois

February 9, 2007

30

Independent Directors
					Number of
					Portfolios in
			Term of Office	Principal	Fund Complex
		Position(s) with	and Length of	Occupation(s)During Past	Overseen by	Other Directorships
Name, Age and Address(1)		the Fund	Time Served	Five Years	Director	Held by Director
Theodore H. Emmerich		Director	Indefinite Term	Consultant	21	American Financial
(80)		and Chairman	Director since			Group
			1987
Yvonne L. Gray		Director	Indefinite Term	Executive Vice President/	21
(55)			Director since	CCO, United Way of Greater
			1999	Cincinnati (Social Services
				Provider); prior thereto, Vice
				President / Trust Operations
				Officer, Fifth Third Bank;
				former Audit Manager, Price
				Waterhouse (Accounting
				Firm)
Michael K. Keating		Director	Indefinite Term	Managing Director, Keating	21
(51)			Director since	Vollmer & Co. LLC (Private
			2005	Equity Investment Firm)
David C. Phillips		Director	Indefinite Term	Co-Founder, Cincinnati	21	Meridian Bioscience,
(68)			Director since	Works Inc. (Job Placement);		Inc.; Cintas, Inc.
			2001	prior thereto, Chief Executive
				Officer, Downtown
				Cincinnati Inc. (Economic
				Revitalization of Cincinnati)
Mary W. Sullivan		Director	Indefinite Term	Attorney, Peck, Shaffer &	21	Franklin Savings and
(50)			Director since	Williams LLP (Law Firm)		Loan Co.; First
			2001			Franklin Corporation
Interested Director and Officers
					Number of
					Portfolios in
			Term of Office	Principal	Fund Complex
	Name, Age and	Position(s) with	and Length of	Occupation(s)During Past	Overseen by	Other Directorships
	Address(1)	the Fund	Time Served	Five Years	Director	Held by Director
Steven R. Sutermeister*		Director,	Indefinite Term	Senior Vice President, Union	21	Summit Investment
(52)		President and	Director since	Central; President and Chief		Partners, Inc.; Union
		Chief Executive	1999	Executive Officer, Adviser.		Central Mortgage
		Officer				Funding, Inc.
John F. Labmeier		Vice President	Indefinite Term	Vice President, Associate	NA	NA
1876 Waycross Rd		and Secretary	Officer since	General Counsel and
Cincinnati, OH 45240.			1990	Assistant Secretary, Union
(57)				Central; Vice President and
				Secretary, Carillon
				I n vestments, Inc.; Secretary,
				Adviser
Thomas G. Knipper		Vice President,	Indefinite Term	Chief Compliance Officer	NA	NA
(49)		Controller and	Officer since	and Treasurer, Adviser
		Chief	1995
		Compliance
		Officer
Gerald Q. Herbert		Treasurer	Indefinite Term	Director of Finance and	NA	NA
(40)			Officer since	Accounting, Adviser; prior
			2005	t h ereto, Controller, General
				Factory Supplies Co.
John M. Lucas		Assistant	Indefinite Term	Second Vice President,	NA	NA
1876 Waycross Rd.		Secretary	Officer since	Counsel and Assistant
Cincinnati, OH 45240			1990	Secretary, Union Central
(55)

(1)	Except as otherwise indicated, the business of each listed person is 312 Walnut St., Ste. 2500, Cincinnati, OH 45202
*	Mr. Sutermeister may be considered to be an "interested person" of the Fund (within the meaning of the Investment Company Act of 1940) because of his
	affiliation with the Adviser.
Note - T he Statement of Additional Information includes additional information about fund directors and is available without charge, upon request, by calling 1-877-546-FUND.

Item 2. Code of Ethics.

As of the end of the period covered by this report (December 31, 2006), the Registrant has adopted a code of ethics that applies to its principal executive officer and principal financial officer/controller. This code of ethics is posted on the Fund's website, www.summitfunds.com.

Item 3. Audit Committee Financial Expert.

The Audit Committee of the Summit Mutual Funds, Inc. Board of Directors has named the following financial experts:

- Theodore H. Emmerich, Independent Director

- Yvonne L. Gray, Independent Director

- David C. Phillips, Independent Director

Item 4. Principal Accountant Fees and Services.

		Fiscal Year Ended 12/31
			-------------		--------------
			2006		2005
			--------------		--------------
		$	147,108	$	142,271
(a)	Audit Fees				3,000
(b)	Audit-related Fees
(c)	Tax Fees
(d)	All Other Fees
(e)	(1) Pre-approval Policy* (see below)
(e)	(2) % above that were pre-approved		0%		0%
(f)	If greater than 50%, disclose hrs.		N/A		N/A
(g)	Non-audit fees rendered to Adviser
	(or affiliate that provided services
	to the Funds).		60,900		197,950
(h)	Disclose whether the Audit Committee
	has considered whether the provisions
	of non-audit services rendered to the
	Adviser that were NOT pre-approved is
	compatible with maintaining the
	auditor's independence.		YES		YES

*(e)	(1) The following discloses the audit committee's pre-approval
	policies and procedures, as set forth in the Audit Committee Charter:

"(c) The Committee shall pre-approve all auditing services and permissible non-audit services (e.g., tax services) to be provided to the Fund by the Accountant, including the fees

therefore. The Committee may delegate to one or more of its members the authority to grant pre-approvals. In connection with such delegation, the Committee shall establish pre-approval policies and procedures, including the requirement that the decisions of any member to whom authority is delegated under this section (c) shall be presented to the full Committee at its next scheduled meeting.

(d) Pre-approval for a non-audit service shall not be required if: (1) the aggregate amount of all such non-audit services is not more than 5% of the total revenues paid by the Fund to the Accountant in the fiscal year in which the non-audit services are provided; (2) such services were not recognized by the Fund at the time of the engagement to be non-audit services; and (3) such services are promptly brought to the attention of the Committee and approved prior to the completion of the audit by the Committee or by one or more members of the Committee to whom authority to grant such approvals has been delegated by the Committee.

(e) The Committee shall pre-approve the Accountant's engagements for non-audit services with the Adviser and any affiliate of the Adviser that provides ongoing services to the Fund in

accordance with paragraph (c) above, if the engagement relates directly to the operations and financial reporting of the Fund, unless the aggregate amount of all services provided constitutes no more than 5% of the total amount of revenues paid to the Accountant by the Fund, the Adviser and any affiliate of the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be pre-approved by the Committee pursuant to this paragraph (without regard to this exception)."

Item 5. Audit Committee of Listed Registrants.

Not Applicable.

Item 6. Schedule of Investments.

Included in Report to Shareholders.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) The Registrant's President and Controller have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the Registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the Registrant in this form N-CSR was recorded, processed, summarized, and reported timely.

(b) There were no significant changes in Registrant's internal controls or other factors that could significantly affect these controls subsequent to the date of their evaluation, including

any corrective actions with regard to significant deficiencies and material weaknesses.

Item 12. Exhibits.

(1) Code of Ethics, filed herewith.

(2) Certifications pursuant to Rule 30a-2(a) under the Act filed herewith.

(3) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Summit Mutual Funds, Inc.                                                                     

By (Signature and Title) /s/ Steven R. Sutermeister                                                  

Steven R. Sutermeister, President

Date   3/7/2007                                                                                                                 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title) /s/ Steven R. Sutermeister                                                  

Steven R. Sutermeister, President

Date   3/7/2007                                                                                                                 

By (Signature and Title) /s/ Thomas G. Knipper                                                        

Thomas G. Knipper, Controller

Date   3/7/2007