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)

312 Walnut Street Suite 2500, Cincinnati, OH 45202

(Address of principal executive offices) (Zip code)

John F. Labmeier, Esq.

312 Walnut Street Suite 2500

Cincinnati, Ohio 45202

(Name and address of agent for service)

(513) 632-1600

Registrant's telephone number, including area code

Date of fiscal year end: December 31, 2007

Date of reporting period:  December 31, 2007

Item 1. Report to Stockholders.

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Summit Mutual Funds, Inc. – Pinacle Series

ANNUAL REPORT – TABLE OF CONTENTS

Message from the President	1
Fund 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
Inflation Protected Plus Portfolio	99
Lifestyle ETF Market Strategy Target Portfolio	105
Lifestyle ETF Market Strategy Conservative Portfolio	111
Lifestyle ETF Market Strategy Aggressive Portfolio	117
Natural Resources Portfolio	123
Notes to Financial Statements	129
Report of Independent Registered Public Accounting Firm	134

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 December 31 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, Lehman Aggregate Bond Index Portfolio, and Inflation Protected Plus 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 of 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.

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Summit Mutual Funds, Inc.

MESSAGE FROM THE PRESIDENT

We are pleased to send you Summit Mutual Funds’ 2007 Annual Report. We welcome new and thank existing investors in the Summit Funds as we strive to help you reach your financial goals.   Financial markets were mixed over the last year, providing mostly positive returns. However, 2007 could clearly be broken into two halves of a year, with the first half providing excellent returns in virtually every asset class, while the second half proved much more challenging. Large cap growth equities, as measured by the Nasdaq-100 Index, lead the major market indexes over the last 12 months, providing a return of 19.24%. International equities also performed well, with the EAFE International index providing a return of 11.17% over the same period.   Economic indicators weakened in 2007, and it seems apparent that the economy will slow in 2008, if not enter a recession. The fallout from poorly underwritten sub-prime mortgage loans continues to plague the financial markets and the housing market with the weakness slowly spreading to other sectors of the economy, and pressuring the consumer. Tightening credit standards are negatively impacting the economy, although the severity is still up for debate. As always, employment and the consumer’s willingness and ability to spend will play a major role in magnitude and duration of any slowdown or recession that occurs. Energy and food prices remain at very high levels, with oil hovering around $90/bbl and food inflation statistics nudging 5%, which continues to put a drag on the economy. Congress and the President are reacting to the slowing economy with a large fiscal stimulus package aimed at putting cash in the hands of consumers. While the final details are forthcoming, it is highly likely that a meaningful financial stimulus package will occur. In addition, there have been many initiatives proposed and debated to ease the mortgage crisis. While the US economy is softening, international growth remains reasonably strong, and a weak US dollar should help buoy the US economy slightly with an advantageous export environment for US goods and services.   The Federal Reserve Board (Fed) reacted by shifting its bias away from inflation and toward a more accommodative monetary policy and cutting the Fed Funds rate 1.00% during the second half of 2007 from 5.25% to 4.25%. In addition, they cut the Fed Funds rate an additional 1.25% in January 2008, to 3.00%. Fed Chairman Bernanke has made it clear that he will decrease interest rates in an attempt to stabilize the economy and financial markets. And the markets are anticipating further rate cuts in 2008.   Equity markets began to show the stress of a slowing economy during the second half of 2007, as markets reversed course and generally declined. The implications of an ongoing credit crunch, a weakening consumer and slowing corporate profits all weighed heavily on the markets. However, most major indexes remained positive for the year. For the twelve-month period ended December 31st, the large cap S&P 500 Index advanced 5.49%, the S&P MidCap 400 Index improved 7.98%, while the small cap Russell 2000 Index receded and showed a -1.57% return. Small cap stocks lagged large cap stocks in 2007, reversing a trend that has been in place for several years. In addition, growth stocks outperformed value stocks, which is also a reversal of recent trends.   “Maintain the proper perspective (and) have realistic expectations . . .”   Fixed income markets provided positive returns over the last twelve months, as well. Short and intermediate term interest rates declined substantially reflecting the Fed’s actions, while longer term interest rates declined more modestly. Treasury securities rates benefited from a flight to quality, especially in the latter part of 2007. Credit spreads (the difference between interest rates on risk-free US Treasuries and other fixed income securities) widened during the period, as investors re-priced risk in the marketplace. In this environment, the Lehman Aggregate Bond Index provided a positive return of 6.97%, while the Lehman U.S. TIPs Index provided a return of 11.64%.   “Proper diversification of your investments . . . is an important component of achieving your long-term investment goals.”   Looking forward, there is much uncertainty regarding the strength of the US economy, corporate profitability, interest rates and credit spreads. Given this financial backdrop, one should expect choppy markets, in both the equity and fixed income arena. However, choppy markets create opportunities, as well as risks.   Now more than ever, our message remains the same. 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 sectors, 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 equity 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

 1

Summit Mutual Funds, Inc. – Pinnacle Series

2007 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 July 1, through December 31, 2007.

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, 2007 to
Portfolio	July 1, 2007		December 31, 2007			Ratio			December 31, 2007
Based on Actual Return
Zenith Portfolio	$	1,000.00		$	952.30		0.88	%		$	4.33	*
Bond Portfolio		1,000.00			1,014.90		0.75	%			3.81	*
S&P 500 Index Portfolio		1,000.00			984.80		0.39	%			1.95	*
S&P Midcap 400 Index Portfolio Class I		1,000.00			961.80		0.52	%			2.57	*
S&P Midcap 400 Index Portfolio Class F		1,000.00			960.90		0.71	%			1.75	**
Balanced Index Portfolio		1,000.00			1,016.90		0.60	%			3.05	*
Nadaq-100 Index Portfolio		1,000.00			1,077.10		0.65	%			3.40	*
Russell 2000 Small Cap Index Portfolio Class I		1,000.00			921.30		0.63	%			3.05	*
Russell 2000 Small Cap Index Portfolio Class F		1,000.00			920.30		0.83	%			4.02	*
EAFE International Index Portfolio Class I		1,000.00			998.20		0.95	%			4.78	*
EAFE International Index Portfolio Class F		1,000.00			1,005.40		1.15	%			0.47	***
Lehman Aggregate Bond Index Portfolio		1,000.00			1,062.70		0.59	%			3.07	*
Inflation Protected Plus Portfolio		1,000.00			1,091.00		0.75	%			3.95	*
Lifestyle ETF Market Strategy Target Portfolio		1,000.00			1,005.10		0.75	%			3.79	*
Lifestyle ETF Market Strategy Conservative Portfolio		1,000.00			1,023.60		0.75	%			3.83	*
Lifestyle ETF Market Strategy Aggressive Portfolio		1,000.00			990.30		0.75	%			3.76	*
Natural Resources Portfolio		1,000.00			1,123.60		0.75	%			4.01	*
Based on Hypothetical Return (5% return before expenses)
Zenith Portfolio		1,000.00			1,020.77		0.88	%			4.48	*
Bond Portfolio		1,000.00			1,021.42		0.75	%			3.82	*
S&P 500 Index Portfolio		1,000.00			1,023.24		0.39	%			1.99	*
S&P Midcap 400 Index Portfolio Class I		1,000.00			1,022.58		0.52	%			2.65	*
S&P Midcap 400 Index Portfolio Class F		1,000.00			1,021.63		0.71	%			3.62	*
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			1,022.03		0.63	%			3.21	*
Russell 2000 Small Cap Index Portfolio Class F		1,000.00			1,021.02		0.83	%			4.23	*
EAFE International Index Portfolio Class I		1,000.00			1,020.42		0.95	%			4.84	*
EAFE International Index Portfolio Class F		1,000.00			1,019.41		1.15	%			5.85	*
Lehman Aggregate Bond Index Portfolio		1,000.00			1,022.23		0.59	%			3.01	*
Inflation Protected Plus Portfolio		1,000.00			1,021.42		0.75	%			3.82	*
Lifestyle ETF Market Strategy Target Portfolio		1,000.00			1,021.42		0.75	%			3.82	*
Lifestyle ETF Market Strategy Conservative Portfolio		1,000.00			1,021.42		0.75	%			3.82	*
Lifestyle ETF Market Strategy Aggressive Portfolio		1,000.00			1,021.42		0.75	%			3.82	*
Natural Resources Portfolio		1,000.00			1,021.42		0.75	%			3.82	*

*	Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
**	Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 92/365 (to reflect the period October 1, 2007 - December 31, 2007, the Fund’s commencement of operations date to the end of the period) to reflect the Fund’s actual expenses.
***	Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 15/365 (to reflect the period December 17, 2007 - December 31, 2007, the Fund’s commencement of operations date to the end of the period) to reflect the Fund’s actual expenses.

2

Summit Mutual Funds, Inc. – Pinnacle Series

ZENITH  PORTFOLIO

Summit Zenith Portfolio - Average Annual Total Return
1-Year	5-Year	10-Year
1.40%	15.74%	6.46%

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:	James McGlynn
	Yvonne M. Bishop
Inception Date:	August 15, 1984
Total Net Assets:	$58.16 Million
Number of Equity Holdings:	57
Median Cap Size:	$52,342 (in millions)
Average Price-to-book Ratio:	1.91 x
Dividend Yield:	2.50%
Average Price-to-earnings Ratio:
Summit Pinnacle Zenith Portfolio	14.7 x
S&P 500 Index	16.9 x

Top 10 Equity Holdings  Sector Allocations

	(% of net assets)
Devon Energy Corp. UnitedHealth Group, Inc. WellPoint, Inc. Wal-Mart Stores, Inc. Motorola, Inc. Royal Dutch Shell PLC Pfizer, Inc. ConocoPhillips Newmont Mining Corp. Chevron Corp.	2.97% 2.58% 2.53% 2.48% 2.37% 2.36% 2.35% 2.34% 2.32% 2.30%

 3

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 total return performance for the year ended December 31, 2007 was 1.40% (before the impact of any product or contract-level fees) versus -0.17% for the Russell 1000 Value Index (“benchmark”) and 5.49% for the Standard & Poor’s 500 Stock Index.

The Federal Reserve (Fed) took a hands-off approach regarding interest rates until mid way through the third quarter of 2007 when they began what ended up as a steady stream of interest rate reductions that lasted through year end and beyond. Even as the rise in commodities prices (energy prices specifically) showed no signs of abating, there was enough weakness in housing alone that the Fed decided to lower rates. They also signaled that their bias had changed from being restrictive to somewhat more neutral. This “neutral” stance didn’t last long however. When the housing and credit problems grew in intensity, and a major savings and loan company, Countrywide Financial, appeared to be in serious trouble, the Fed quickly cut interest rates to ensure, at least, a temporary survival. It was becoming apparent that the domestic housing market that had provided so much positive growth to the economy over the past five years was showing signs of rampant over-valuation. The housing market continued to climb as long as easy money fueled demand and drove prices up, but it began to collapse as the creative financing evaporated. Investors rushed for the doors, but there were not enough buyers to bail them out.

Consequently throughout the second half of 2007, the unfortunate holders (or guarantors) of these loans were forced into a series of painful write downs to their balance sheets. In the process, they reduced their ability to make further loans. The CEO’s of major banks and brokers were forced to resign after admitting that they had overindulged in this market. New management made additional write-downs and went cap in hand to foreign investors for capital to replenish their balance sheets. The destruction in capital along with the reduced willingness or ability to lend has led to a credit contraction that the Fed is only now beginning to fully address. Every new head of the Federal Reserve is tested early in his term, and now Ben Bernanke is no exception. When recession is on the horizon, the Federal Reserve will talk tough on inflation but is most concerned with a quick recovery even if inflation rises in the interim.

Contributors to Performance

The portfolio’s top three contributors to performance during 2007 were the Financial Services, Technology, and Producer Durables sectors. Financial Services was one of only two sectors in the Index to end the year with a negative return. The portfolio’s strategy was to maintain a significant underweight of Financial Services sector as we believed the benchmark’s concentration was too high. This strategy produced positive relative returns as the sector suffered significant losses. Positive returns were also attributable to superior stock selection in Technology. Nokia Corp was a top performer in the Portfolio and Tyco Electronics benefited after its spin-off from Tyco International. Lack of exposure to the underperforming Semiconductors also improved returns. Finally, superior stock selection in the Producer Durables sector boosted returns. The Portfolio concentrated on global infrastructure positions with exposure to Caterpillar, 3M, Tyco, Honeywell, and Ingersoll-Rand, with the latter two being top contributors to returns. Investors moved to these stocks as concerns mounted about the domestic economy.

Detractors from Performance

The Portfolio’s top three detractors from performance were the Energy, Utilities, and Consumer Discretionary sectors. Energy was the biggest detractor from relative performance because of an underweighting of the sector. Energy gains were driven as volatile oil prices moved from lows of $50 to highs of $100 per barrel. Three of the Portfolio’s top ten contributors to return were Devon, Chevron, and ConocoPhillips. An overweight of outperforming Utilities did not help relative performance due to poor stock selection in Telecom. Positive returns in AT&T and Verizon were not enough to offset the losses from Sprint Nextel and Citizens Communications. Finally, poor subsector selection in Autos & Transportation detracted from returns. The Portfolio was overweight Air Transport, that was burdened with high fuel costs and a slowing economy and lacked exposure to outperforming Railroads.

After the stock market’s decline in the second half and especially after the unusually negative fourth quarter, we see many more attractive valuations in the market. Valuations are much more compelling now that individual investors have started to panic and institutional investors are convinced the U.S is in a recession and that earnings forecasts must reflect a poor economic outlook. While it is true that many financial companies are writing down their balance sheets and other cyclically oriented companies are missing their forecasts, the Federal Reserve has started to pump added liquidity into the system with lower interest rates. The 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 an accommodative Federal Reserve.

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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.
	Year Ended December 31,
	2007			2006			2005			2004			2003
Net asset value, beginning of period	$	101.12		$	91.78		$	91.30		$	80.76		$	59.67
INVESTMENT ACTIVITIES:
Net investment income / (loss)		1.64			1.42			1.35			1.47			1.17
Net realized and unrealized gains / (losses)		(0.06	)		18.02			4.57			10.33			20.01
Total from Investment Activities		1.58			19.44			5.92			11.80			21.18
DISTRIBUTIONS:
Net investment income		(1.42	)		(1.42	)		(1.43	)		(1.26	)		(0.09	)
Net realized gains		(8.32	)		(8.68	)		(4.01	)		—			—
Total Distributions		(9.74	)		(10.10	)		(5.44	)		(1.26	)		(0.09	)
Net asset value, end of period	$	92.96		$	101.12		$	91.78		$	91.30		$	80.76
Total return		1.40	%		23.12	%		6.92	%		14.77	%		35.56	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net		0.87	%		0.88	%		0.89	%		0.91	%		0.93	%
Ratio of net investment income / (loss) to average net assets		1.61	%		1.57	%		1.49	%		1.74	%		1.68	%
Portfolio turnover rate		41.99	%		61.14	%		57.30	%		68.59	%		71.70	%
Net assets, end of period (000’s)	$	58,157		$	62,428		$	52,795		$	51,864		$	47,104

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

 5

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

DECEMBER 31, 2007
	SHARES		VALUE
COMMON STOCKS - 96.3%
Consumer Discretionary - 8.4%
CBS Corporation		29,174	$	794,991
Gannett Co, Inc.		24,500		955,500
Honda Motor Co. Ltd. - ADR		37,500		1,242,750
News Corp. - Class B (d)		29,500		626,875
Sony Corp. - ADR		10,900		591,870
Time Warner, Inc.		41,600		686,816
				4,898,802
Consumer Staples - 8.8%
Altria Group, Inc.		15,800		1,194,164
CVS Caremark Corp.		11,800		469,050
Kraft Foods, Inc. - Class A		34,872		1,137,873
Unilever NV - ADR (d)		23,800		867,748
Wal-Mart Stores, Inc.		30,400		1,444,912
				5,113,747
Energy - 13.3%
Chevron Corp.		14,340		1,338,352
ConocoPhillips		15,442		1,363,529
Devon Energy Corp.		19,400		1,724,854
Nabors Industries Ltd. (a) (d)		24,100		660,099
Royal Dutch Shell PLC - ADR (d)		16,300		1,372,460
Spectra Energy Corp.		50,072		1,292,859
				7,752,153
Financials - 22.7%
AllianceBernstein Holding LP		17,100		1,286,775
The Allstate Corp.		20,800		1,086,384
Bank of America Corp.		29,384		1,212,384
Bank of New York Mellon Corp		18,549		904,449
Capital One Financial Corp.		9,300		439,518
Citigroup, Inc.		32,100		945,024
Discover Financial Services		25,250		380,770
Genworth Financial, Inc.		41,100		1,045,995
Hartford Financial Services Group, Inc.		10,700		932,933
J.P. Morgan Chase & Co.		26,304		1,148,170
Legg Mason, Inc.		17,100		1,250,865
Metlife, Inc.		4,500		277,290
Morgan Stanley		13,600		722,296
The Travelers Companies, Inc.		13,500		726,300
Wells Fargo & Co.		27,800		839,282
				13,198,435
Health Care - 12.9%
Covidien Ltd.		16,075		711,962
GlaxoSmithKline PLC - ADR		23,800		1,199,282
Johnson & Johnson		18,200		1,213,940
Pfizer, Inc.		60,200		1,368,346

	SHARES		VALUE
Health Care - 12.9% (Continued)
UnitedHealth Group, Inc.		25,800	$	1,501,560
Wellpoint, Inc. (a)		16,800		1,473,864
				7,468,954
Industrials - 8.5%
3M Co.		15,500		1,306,960
Caterpillar, Inc.		18,300		1,327,848
Ingersoll-Rand Co. Ltd.		11,700		543,699
Southwest Airlines Co.		88,100		1,074,820
Tyco International Ltd.		17,275		684,954
				4,938,281
Materials - 4.3%
The Dow Chemical Co.		29,500		1,162,890
Newmont Mining Corp.		27,600		1,347,708
				2,510,598
Media - 1.4%
Comcast Corp. (a)		44,700		816,222
Technology - 5.8%
Cisco Systems, Inc. (a)		27,400		741,718
International Business Machines Corp.		6,200		670,220
Motorola, Inc.		85,900		1,377,836
Nokia Corp. - ADR		20,500		786,995
Tyco Electronics Ltd.		19,175		711,968
				4,288,737
Utilities - 8.6%
AT&T, Inc.		22,500		935,100
Citizens Communications Co. (d)		58,800		748,524
Duke Energy Corporation		51,244		1,033,591
Southern Co.		26,900		1,042,375
Sprint Nextel Corp.		63,800		837,694
Verizon Communications, Inc.		9,700		423,793
				5,021,077
TOTAL COMMON STOCKS
(Cost $50,947,075)				56,007,006
SHORT TERM INVESTMENTS - 5.3%
Money Market Funds - 5.3%
Northern Institutional Diversified Assets Portfolio		3,077,226		3,077,226
TOTAL SHORT TERM INVESTMENTS
(Cost $3,077,226)				3,077,226
Total Investments
(Cost $54,110,731) (b) - 101.6%				59,084,232
Northern Institutional Liquid Assets Portfolio (c) - 6.4%				3,712,535
Liabilities in Excess of Other Assets - (8.0)%				(4,639,274	)
TOTAL NET ASSETS - 100.0%			$	58,157,493

ADR American Depository Receipt

^(a) Non-income producing security.

^(b) For federal income tax purposes, cost is $54,119,715 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $8,908,346 and ($3,943,829), respectively, with a net appreciation / (depreciation) of $4,964,517.

(c) This security was purchased with cash collateral held from securities lending. The market values of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted are $4,046,721, $3,712,535, and $471,841, respectively.

^(d) All or a portion of the security is out on loan.

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

6

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

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value	$	59,084,232
Collateral for securities loaned,
at fair value		3,712,535
Receivables:
Shares sold		3,947
Interest and dividends		107,571
Prepaid expenses and other		1,799
		62,910,084
LIABILITIES
Payables:
Payable upon return of securities loaned		3,712,535
Bank overdraft		784
Shares redeemed		963,634
Advisory fees		32,542
Professional fees		17,624
Fund accounting fees		10,186
Administration fees		5,085
Custodian fees		1,368
Directors’ fees		138
Other accrued expenses		8,695
		4,752,591
NET ASSETS*
Paid-in capital		47,478,384
Accumulated undistributed net
investment income / (loss)		891,597
Accumulated net realized gain / (loss)
on investments		4,814,011
Net unrealized appreciation / (depreciation)
on investments		4,973,501
	$	58,157,493
Investments at cost	$	54,110,731
Shares authorized ($.10 par value)		40,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$58,157,493	625,639	$	92.96

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2006
	Percentage of ordinary distributions designated as
	qualified dividend income		56.79%
	Dividends received deduction for corporate shareholders		47.90%
	Undistributed ordinary income	$	2,317,820
	Undistributed long-term gains	$	3,396,772
	Unrealized appreciation	$	4,964,517

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Dividends	$	1,487,389
Foreign dividend taxes withheld		(19,449	)
Interest		12,931
Other income		96,128
		1,576,999
EXPENSES
Advisory fees		405,607
Administration fees		63,376
Fund accounting fees		24,156
Professional fees		22,778
Transfer agent fees		13,114
Directors’ fees		7,349
Shareholder reporting fees		6,188
Custodian fees		5,339
Other expenses		5,650
		553,557
NET INVESTMENT INCOME / (LOSS)		1,023,442
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		4,836,335
Net change in unrealized appreciation /
(depreciation) on investments		(4,908,004	)
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		(71,669	)
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	951,773

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.

 7

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

STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended December 31,
	2007			2006
OPERATIONS
Net investment income / (loss)	$	1,023,442		$	885,141
Net realized gain / (loss) on investments		4,836,335			5,134,324
Net change in unrealized appreciation / (depreciation) on investments		(4,908,004	)		5,822,502
		951,773			11,841,967
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(876,279	)		(807,599	)
Net realized gain on investments		(5,128,119	)		(4,937,705	)
		(6,004,398	)		(5,745,304	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		4,039,840			3,345,499
Reinvestment of distributions		6,004,398			5,745,304
Payments for shares redeemed		(9,262,372	)		(5,554,370	)
		781,866			3,536,433
NET INCREASE / (DECREASE) IN NET ASSETS		(4,270,759	)		9,633,096
NET ASSETS
Beginning of period		62,428,252			52,795,156
End of period	$	58,157,493		$	62,428,252
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	891,597		$	742,912

FUND SHARE TRANSACTIONS
Sold	$	41,780			36,256
Reinvestment of distributions		63,592			66,775
Redeemed		(97,071	)		(60,922	)
Net increase / (decrease) from fund share transactions		8,301			42,109
TOTAL COST OF PURCHASES OF:
Common Stocks	$	25,708,615		$	33,741,714
	$	25,708,615		$	33,741,714
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	30,683,082		$	35,520,798
	$	30,683,082		$	35,520,798
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income**	$	2,319,583		$	2,263,647
Long-term capital gains		3,684,815			3,481,657
	$	6,004,398		$	5,745,304
**The percentage of taxable ordinary income distributions that are designated as short-term capital gain
distributions under Internal Revenue Section 871 (k)(2)(C) is 62.22%

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
3.46%	4.65%	4.84%

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:	$26.84 Million
Number Of Fixed Income Holdings:	132
Effective Duration:	4.57 years
Average Maturity:	13.51 years
Average Credit Quality:	A1/A+
30-day SEC Yield:	5.36%

Quality Breakdown  Sector Allocations

	(% of portfolio)
AAA AA A BBB BB B CCC	42% 11% 11% 22% 6% 7% 1%

 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:

For the year ended December 31, 2007, the Summit Bond Portfolio provided a total return of 3.46% (before the impact of contract or product fees and expenses) compared to 6.97% for the Lehman Brothers Aggregate Bond Index (Index). The Bond Portfolio’s underweighting of Treasury bonds, that outperformed corporate and mortgage-backed securities (“MBS”) over the last year, detracted from performance. In addition, the Portfolio’s non-agency mortgage-backed securities underperformed the broader MBS indices. Lastly, the Portfolio’s exposure to high yield securities detracted from performance during the latter half of the year.

Short-term interest rates declined substantially during the year, as the Federal Reserve Board (Fed) cut the Fed Funds rate by 1.00% during 2007, from 5.25% to 4.25%. The Fed has continued to cut the Fed Funds rate in 2008, in response to a weakening economy. In January 2008, the Fed cut the Fed Funds rate by another 1.25%, to 3.00%. The marketplace currently expects further cuts in the Federal Funds rate. Longer term interest rates also declined during 2007 with the 10 year Treasury yield declining from 4.70% to 4.02% and the 2 year Treasury yield declining from 4.81% to 3.05% throughout the year.

Credit spreads (the interest rate difference between risk-free U.S. Treasury securities and other fixed income securities) widened during the latter half of 2007, as the sub-prime mortgage crisis deepened and spread to other asset classes. In addition, concerns about a slowing overall economy negatively impacted credit spreads. Borrowed capital has become more costly, and more importantly, more scarce. Credit spreads that started the summer of 2007 at historically tight levels have widened across the entire quality spectrum, as market participants re-priced risk in their portfolios. Tighter credit standards and widening spreads helped fuel the flight to quality that the markets experienced in the latter half of 2007. In this environment, corporate and non-agency mortgage-backed securities underperformed US Treasury and agency securities.

The outlook is for a slowing economy in 2008. Tightening credit, a stretched consumer, and a continued slump in the housing market continue to take their toll on the economy. However, Congress and the President are expected to pass a significant fiscal stimulus package, and the Fed, recognizing the problems at hand, have adopted a more accommodative monetary policy. These actions should positively impact the economy in the latter half of 2008. In this environment, Summit believes that caution is in order, but that investment managers must be willing to take advantage of opportunities as they arise.

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.
	Year Ended December 31,
	2007			2006			2005			2004			2003
Net asset value, beginning of period	$	47.07		$	47.07		$	48.26		$	48.41		$	47.93
INVESTMENT ACTIVITIES:
Net investment income / (loss)		2.45			2.52			2.42			1.67			3.25
Net realized and unrealized gains / (losses)		(0.84	)		(0.13	)		(1.42	)		0.36			0.56
Total from Investment Activities		1.61			2.39			1.00			2.03			3.81
DISTRIBUTIONS:
Net investment income		(2.46	)		(2.39	)		(2.19	)		(2.18	)		(3.33	)
Total Distributions		(2.46	)		(2.39	)		(2.19	)		(2.18	)		(3.33	)
Net asset value, end of period	$	46.22		$	47.07		$	47.07		$	48.26		$	48.41
Total return		3.46	%		5.25	%		2.14	%		4.29	%		8.21	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net(1)		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Ratio of expenses to average net assets – gross		0.82	%		0.81	%		0.83	%		0.82	%		0.81	%
Ratio of net investment income / (loss) to average net assets		5.11	%		5.23	%		5.10	%		4.05	%		6.72	%
Portfolio turnover rate		106.51	%		79.22	%		32.96	%		66.03	%		109.52	%
Net assets, end of period (000’s)	$	26,837		$	28,349		$	30,783		$	36,300		$	37,197
(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, 2007
	SHARES		VALUE
COMMON STOCKS - 0.0%
Consumer Discretionary - 0.0%
Avado Brands, Inc. (a) (g) (i)		1,601	$	16
Intermet Corp. (a) (g) (i)		1,574		1,574
				1,590
TOTAL COMMON STOCKS
(Cost $61,180)				1,590
PREFERRED STOCKS - 0.0%
Consumer Discretionary - 0.0%
ION Media Networks, Inc.12% Payment-in-Kind Dividend (i)		1		1,679
TOTAL PREFERRED STOCKS
(Cost $10,206)				1,679
		PRINCIPAL
	AMOUNT		VALUE
ASSET BACKED SECURITIES - 1.5%
America West Airlines, Inc. - AMBAC Insured
7.100%, 10/02/2022	$	196,357	$	195,375
Asset Backed Funding Certificates
Series 2005-AQ1, 5.240%, 11/25/2034		170,000		138,654
Centex Home Equity
Series 2001-B, 7.360%, 07/25/2032		41,058		36,233
First Franklin Mortgage
Series 2003-FF2, 7.34%, 07/25/2033		49,519		31,005
JET Equipment Trust
Series 1995-B, 7.630%, 02/15/2015 (b) (h) (i)		27,324		151
TOTAL ASSET BACKED SECURITIES
(Cost $487,319)				401,418
CORPORATE BONDS - 42.9%
Consumer Discretionary - 4.9%
General Motors Corp.
7.700%, 04/15/2016 (e)		50,000		42,375
Idearc, Inc.
8.000%, 11/15/2016		100,000		91,750
Intcomex, Inc.
11.750%, 01/15/2011 (e)		125,000		128,125
ION Media Networks, Inc.
11.000%, 07/31/2013		167,909		83,955
MDC Holdings, Inc.
5.500%, 05/15/2013		150,000		143,499
NVR, Inc.
5.000%, 06/15/2010 (e)		210,000		210,621
R. H. Donnelley Corp.
6.875%, 01/15/2013		125,000		111,875
Radio One, Inc.
8.875%, 07/01/2011 (e)		32,000		29,960
TCI Communications, Inc.
8.750%, 08/01/2015		230,000		267,537
The Thomson Corp.
6.200%, 01/05/2012		200,000		208,616
				1,318,313
Consumer Staples - 1.5%
Constellation Brands, Inc.
7.250%, 09/01/2016 (e)		125,000		117,187

	PRINCIPAL
	AMOUNT		VALUE
Consumer Staples - 1.5% (Continued)
Del Monte Corp.
6.750%, 02/15/2015 (e)	$	62,000	$	58,590
Tesco PLC
5.500%, 11/15/2017 (b)		230,000		229,395
				405,172
Energy - 5.3%
Anadarko Petroleum Corp.
5.950%, 09/15/2016		230,000		234,193
Chesapeake Energy Corp.
6.625%, 01/15/2016 (e)		125,000		122,187
Complete Production Services, Inc.
8.000%, 12/15/2016 (e)		125,000		120,938
Encore Acquisition Co.
7.250%, 12/01/2017 (e)		75,000		71,438
Enterprise Products Operating LP
6.300%, 09/15/2017		150,000		153,474
Peabody Energy Corp.
7.375%, 11/01/2016		50,000		51,250
Pioneer Natural Resources Co.
6.650%, 03/15/2017		125,000		120,546
Plains All American Pipeline LP
4.750%, 08/15/2009		250,000		251,192
Range Resources Corp.
7.375%, 07/15/2013		39,000		39,585
7.500%, 05/15/2016		25,000		25,500
TransCanada Pipelines Ltd
6.350%, 05/15/2067 (c)		230,000		215,574
				1,405,877
Financials - 11.7%
AXA SA
5.362%, 02/06/2049 (c) (i)		450,000		283,500
Bank of America Corp.
5.750%, 12/01/2017		150,000		150,344
Bank of New York Mellon
4.950%, 11/01/2012		175,000		174,998
ConocoPhillips Australia Funding Co.
5.500%, 04/15/2013		230,000		238,075
Ford Motor Credit Co.
5.800%, 01/12/2009		94,000		89,224
7.990%, 01/13/2012 (c)		63,000		52,918
8.000%, 12/15/2016		31,000		26,332
Health Care REIT, Inc.
8.000%, 09/12/2012		250,000		266,154
iStar Financial, Inc.
5.950%, 10/15/2013		230,000		200,420
Landsbanki Islands HF
6.100%, 08/25/2011 (b)		230,000		226,678
Lincoln National Corp.
6.050%, 04/20/2017 (c)		225,000		210,051
Prime Property Fund, Inc.
5.500%, 01/15/2014 (b)		150,000		149,261
Rabobank Capital Funding Trust II
5.260%, 12/29/2049 (b) (c) (d)		220,000		204,970
Swiss Re Capital I LP
6.854%, 05/29/2049 (b) (c) (i)		220,000		223,728
Vale Overseas Ltd.
6.250%, 01/23/2017		225,000		225,699

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 - 11.7% (Continued)
Ventas Realty LP
7.125%, 06/01/2015	$	37,000	$	37,370
WMC Finance USA Ltd.
5.125%, 05/15/2013		200,000		197,144
Xstrata Finance Canada Ltd.
5.800%, 11/15/2016 (b)		100,000		98,068
Yankee Acquisition Corp.
9.750%, 02/15/2017 (e)		100,000		91,500
				3,146,434
Health Care - 2.3%
Abbott Laboratories
5.600%, 11/30/2017		230,000		236,307
Community Health Systems, Inc.
8.875%, 07/15/2015 (e)		63,000		64,181
DaVita, Inc.
7.250%, 03/15/2015 (e)		31,000		31,078
HCA, Inc.
9.250%, 11/15/2016		125,000		131,250
UnitedHealth Group, Inc.
6.000%, 11/15/2017		150,000		151,994
				614,810
Industrials - 4.5%
American Railcar Industries, Inc.
7.500%, 03/01/2014		25,000		23,625
Ametek, Inc.
7.200%, 07/15/2008		250,000		252,307
Aramark Corp.
8.500%, 02/01/2015 (e)		100,000		101,250
Caterpillar, Inc.
5.700%, 08/15/2016 (e)		230,000		233,738
DRS Technologies, Inc.
7.625%, 02/01/2018 (e)		32,000		32,400
Hertz Corp.
8.875%, 01/01/2014		50,000		50,687
Joy Global, Inc.
6.000%, 11/15/2016		225,000		233,110
Kansas City Southern De Mexico
7.375%, 06/01/2014 (b)		50,000		48,625
Raytheon Co.
5.500%, 11/15/2012		230,000		239,475
				1,215,217
Information Technology - 1.7%
Cisco Systems, Inc.
5.500%, 02/22/2016		230,000		233,903
Harris Corp.
5.950%, 12/01/2017		150,000		149,328
Iron Mountain, Inc.
7.750%, 01/15/2015 (e)		75,000		76,313
				459,544
Manufacturing - 0.7%
Dynegy Holdings, Inc.
7.750%, 06/01/2019		100,000		92,250
Petroplus Finance Ltd
7.000%, 05/01/2017 (b)		100,000		91,500
				183,750

	PRINCIPAL
	AMOUNT		VALUE
Materials - 3.3%
Freeport-McMoRan Copper & Gold, Inc.
8.375%, 04/01/2017	$	100,000	$	107,250
Lubrizol Corp.
7.250%, 06/15/2025		300,000		327,217
The Mosaic Co.
7.875%, 12/01/2016 (b) (c)		100,000		108,000
Smurfit-Stone Container Enterprises, Inc.
8.000%, 03/15/2017 (e)		100,000		96,625
United States Steel Corp
6.050%, 06/01/2017		150,000		140,975
Warnaco, Inc.
8.875%, 06/15/2013		100,000		101,750
				881,817
Telecommunication Services - 3.3%
America Movil SAB de CV
5.625%, 11/15/2017		230,000		224,732
Intelsat Bermuda Ltd
11.250%, 06/15/2016		100,000		103,250
iPCS, Inc.
7.040%, 05/01/2013 (c)		175,000		164,937
Qwest Communications International, Inc.
7.500%, 02/15/2014 (c)		125,000		124,688
TELUS Corp.
8.000%, 06/01/2011		150,000		162,520
Windstream Corp.
8.625%, 08/01/2016		100,000		105,000
				885,127
Utilities - 3.7%
Calpine Corp.
9.875%, 12/01/2011 (b) (h)		125,000		130,625
Centerpoint Energy Resources Corp.
6.125%, 11/01/2017		75,000		76,327
Edison Mission Energy
7.500%, 06/15/2013 (e)		125,000		128,125
Exelon Corp.
6.750%, 05/01/2011		230,000		240,386
FPL Group Capital, Inc.
6.350%, 10/01/2066 (c)		230,000		217,531
Kern River Funding Corp.
6.676%, 07/31/2016 (b)		49,549		52,426
NSTAR Electric Co.
5.625%, 11/15/2017		150,000		152,613
				998,033
TOTAL CORPORATE BONDS
(Cost $11,820,184)				11,514,094

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 - 48.0%
Banc of America Alternative Loan Trust
Series 2003-6, 4.750%, 08/25/2018	$	277,487	$	224,657
Series 2003-8, 4.750%, 10/25/2018		117,106		82,634
Banc of America Funding Corp.
Series 2003-2, 6.382%, 06/25/2032		197,736		192,497
Banc of America Mortgage Securities
Series 2004-7, 4.797%, 08/25/2019		258,005		226,255
Series 2001-4, 6.750%, 04/20/2031		152,923		152,611
Series 2002-G, 7.363%, 07/20/2032		53,727		54,497
Series 2004-6, 5.500%, 07/25/2034		151,962		151,537
Citicorp Mortgage Securities, Inc.
Series 2003-10, 4.500%, 11/25/2018		762,903		747,645
Countrywide Home Loans
Series 2003-58, 4.560%, 02/19/2034		353,130		345,697
Series 2006-6, 6.000%, 04/25/2036		342,581		297,934
Series 2007-5, 5.750%, 05/25/2037		397,639		358,106
Credit Suisse Mortgage Capital Corporation
Series 2006-4, 5.745%, 05/25/2036		214,990		153,545
CS First Boston Mortgage Securities Corp.
Series 2004-6, 4.756%, 09/25/2019		248,891		192,932
Fannie Mae
Series 94-019, 5.000%, 01/25/2024		70,811		70,832
Series 2002-48B, 6.500%, 10/25/2031		905,163		918,325
Fannie Mae Pool
Pool #254438, 5.500%, 08/01/2009		78,929		79,729
Pool #555638, 5.000%, 11/01/2009		207,797		208,471
Pool #254643, 5.500%, 01/01/2010		124,307		125,567
Pool #555520, 5.500%, 02/01/2010		41,422		41,842
Pool #254340, 5.500%, 05/01/2012		79,812		81,249
Pool #545015, 6.000%, 06/01/2016		90,562		92,820
Pool #727360, 5.500%, 08/01/2018		621,024		630,253
Pool #481582, 6.500%, 02/01/2029		45,674		47,341
Freddie Mac
Series 2931, 5.000%, 11/15/2028		700,554		704,172
Freddie Mac Pool
Pool #G0-1740, 5.500%, 12/01/2034		2,450,145		2,447,963
Freddie Mac (Gold) Pool
Pool #E9-6460, 5.000%, 05/01/2018		107,320		107,584
Pool #E9-9160, 4.500%, 09/01/2018		1,602,618		1,575,893
Pool #C7-6658, 5.000%, 02/01/2033		73,687		72,006
Ginnie Mae I Pool
Pool #44670, 6.500%, 10/15/2028		55,033		57,120
GMAC Mortgage Corp Loan Trust
Series 2004-J1, 5.250%, 04/25/2034		108,304		108,085
Lehman Mortgage Trust
Series 2005-2, 5.573%, 12/25/2035		394,593		215,147

	PRINCIPAL
	AMOUNT		VALUE
MORTGAGE BACKED SECURITIES - 48.0% (Continued)
MASTR Alternative Loans Trust
Series 2003-2, 6.080%, 03/25/2033	$	199,116	$	171,810
MASTR Asset Securitization Trust
Series 2003-9, 5.500%, 10/25/2033		52,346		52,432
Morgan Stanley Capital I
Series 2007-IQ14, 5.692%, 04/15/2049		300,000		305,784
Residential Accredit Loans, Inc.
Series 2002-QS16, 5.750%, 10/25/2017		73,324		70,305
Series 2002-QS16, 5.750%, 10/25/2017		73,324		62,061
Series 2005-QS14, 5.250%, 09/25/2020 (i)		292,284		245,519
Residential Funding Mortgage Securities
Series 2003-S20, 4.750%, 12/25/2018		273,375		246,739
Salomon Brothers Mortgage Securities VII
Series 2003-HYB1, 4.114%, 09/25/2033		187,302		183,089
Structured Asset Securities Corp.
Series 2003-20, 5.390%, 07/25/2033		279,036		238,808
Washington Mutual Mortgage Pass-Through Certificates
Series 2002-MS11, 5.250%, 12/25/2017		404,818		404,984
Series 2003-MS4, 5.785%, 02/25/2033 (b)		162,604		145,792
TOTAL MORTGAGE BACKED SECURITIES
(Cost $13,348,663)				12,892,269
U.S. TREASURY OBLIGATIONS - 4.8%
U.S. Treasury Bonds - 0.8%
4.500%, 02/15/2036 (e)		200,000		201,016
U.S. Treasury Notes - 4.0%
3.375%, 11/30/2012 (e)		100,000		99,664
3.625%, 05/15/2013 (e)		230,000		231,581
4.250%, 11/15/2017 (e)		735,000		747,805
				1,079,050
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,258,840)				1,280,066
	SHARES		VALUE
SHORT TERM INVESTMENTS - 4.8%
Money Market Funds - 4.8%
Northern Institutional Diversified Assets Portfolio		1,273,216	$	1,273,216
TOTAL SHORT TERM INVESTMENTS
(Cost $1,273,216)				1,273,216
Total Investments
(Cost $28,259,608) (d)- 102.0%				27,364,332
Northern Institutional Liquid Assets Portfolio (f)- 10.7%				2,884,012
Liabilities in Excess of Other Assets - (12.7)%				(3,411,321	)
TOTAL NET ASSETS - 100.0%			$	26,837,023

(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 $28,267,954 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $233,106 and ($1,136,728), respectively, with a net appreciation / (depreciation) of ($903,622).

(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 $2,861,197, $2,884,012, and $71,671, respectively.

(g) Security is considered illiquid. The aggregate value of such securities is $1,590 or 0.005% 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 an integral part of the financial statements.

14

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

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value	$	27,364,332
Collateral for securities loaned,
at fair value		2,884,012
Receivables:
Interest and dividends		263,678
Shares sold		26,331
Prepaid expenses and other		812
		30,539,165
LIABILITIES
Payables:
Payable upon return of securities loaned		2,884,012
Shares redeemed		574,475
Investment securities purchased		197,161
Professional fees		16,234
Fund accounting fees		11,578
Advisory fees		8,031
Administration fees		2,305
Custodian fees		1,236
Directors’ fees		102
Other accrued expenses		7,008
		3,702,142
NET ASSETS*
Paid-in capital		33,696,255
Accumulated undistributed net investment
income / (loss)		206,571
Accumulated net realized gain / (loss)
on investments		(6,170,527	)
Net unrealized appreciation / (depreciation)
on investments		(895,276	)
	$	26,837,023
Investments at cost	$	28,259,608
Shares authorized ($.10 par value)		30,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$26,837,023	580,590	$	46.22

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2007
	Undistributed ordinary income	$	215,068
Capital Loss Carryforward
Expiring December 31:

2008  2009  2010 2012 2014

$(4,452,042)  $(119,441)  $(1,273,958) $(75,650) $(241,081)

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Interest	$	1,599,852
Dividends		20,695
Other income		9,105
		1,629,652
EXPENSES
Advisory fees		130,789
Administration fees		27,828
Fund accounting fees		25,977
Professional fees		18,354
Transfer agent fees		12,219
Custodian fees		5,280
Directors’ fees		3,152
Shareholder reporting fees		2,633
Other expenses		3,038
		229,270
Reimbursements and waivers		(20,563	)
		208,707
NET INVESTMENT INCOME / (LOSS)		1,420,945
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		247,103
Net change in unrealized appreciation /
(depreciation) on investments		(705,862	)
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		(458,759	)
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	962,186

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%	$20,563
(1)	The adviser has agreed to temporarily waive administration fees for the Bond Portfolio, to the extent that the Portfolio’s total expense ratio exceeds 0.75%.

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
For the Year Ended December 31,
	2007			2006
OPERATIONS
Net investment income / (loss)	$	1,420,945		$	1,502,162
Net realized gain / (loss) on investments		247,103			(271,614	)
Net change in unrealized appreciation / (depreciation) on investments		(705,862	)		218,274
		962,186			1,448,822
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(1,448,294	)		(1,461,411	)
		(1,448,294	)		(1,461,411	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		3,195,195			2,205,561
Reinvestment of distributions		1,448,294			1,461,411
Payments for shares redeemed		(5,669,542	)		(6,087,857	)
		(1,026,053	)		(2,420,885	)
NET INCREASE / (DECREASE) IN NET ASSETS		(1,512,161	)		(2,433,474	)
NET ASSETS
Beginning of period		28,349,184			30,782,658
End of period	$	26,837,023		$	28,349,184
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	206,571		$	215,068

FUND SHARE TRANSACTIONS
Sold		68,083			47,186
Reinvestment of distributions		31,041			31,501
Redeemed		(120,796	)		(130,332	)
Net increase / (decrease) from fund share transactions		(21,672	)		(51,645	)
TOTAL COST OF PURCHASES OF:
Preferred and Common Stocks	$	10,207		$	208,555
U.S. Government Securities		9,301,044			4,426,366
Corporate Bonds		15,777,068			17,678,086
Asset Backed Securities		3,848,601			—
	$	28,936,920		$	22,313,007
TOTAL PROCEEDS FROM SALES OF:
Preferred and Common Stocks	$	200,846		$	438,209
U.S. Government Securities		9,731,105			6,207,390
Corporate Bonds		17,854,017			18,009,936
Asset Backed Securities		1,966,439			—
	$	29,752,407		$	24,655,535
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	1,448,294		$	1,461,411
	$	1,448,294		$	1,461,411

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
5.16%	12.36%	5.50%

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 Kevin P. Aug
Inception Date:	December 29, 1995
Total Net Assets:	$302.82 Million
Number of Equity Holdings:	500
Median Cap Size:	$13,043 (in millions)
Average Price-to-book Ratio:	2.77 x
Dividend Yield:	1.97%

Top 10 Equity Holdings  Sector Allocations

	(% of net assets)
Exxon Mobil Corp. General Electric Co. Microsoft Corp.   AT&T, Inc. Procter & Gamble Co.  Chevron Corp.  Johnson & Johnson  Bank of America Corp. Apple, Inc. Cisco Systems, Inc.	3.88% 2.84% 2.17% 1.91% 1.73% 1.49% 1.45% 1.39% 1.31% 1.24%

 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 period ended December 31, 2007, the Summit S&P 500 Index Portfolio’s total return was 5.16% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 5.49% total return for the S&P 500 Index. The difference of 0.33% 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.
	Year Ended December 31,
		2007			2006			2005			2004			2003
Net asset value, beginning of period		$	94.19		$	82.85		$	80.48		$	73.21		$	57.82
INVESTMENT ACTIVITIES:
Net investment income / (loss)			1.52			1.40			1.17			1.16	(2)		0.81
Net realized and unrealized gains / (losses)			3.31			11.19			2.39			6.41			15.17
Total from Investment Activities			4.83			12.59			3.56			7.57			15.98
DISTRIBUTIONS:
Net investment income			(1.42	)		(1.25	)		(1.19	)		(0.30	)		(0.59	)
Net realized gains			(0.16	)		—			—			—			—
Total Distributions			(1.58	)		(1.25	)		(1.19	)		(0.30	)		(0.59	)
Net asset value, end of period		$	97.44		$	94.19		$	82.85		$	80.48		$	73.21
Total return			5.16	%		15.36	%		4.52	%		10.37	%		27.98	%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net(1)			0.39	%		0.39	%		0.39	%		0.40	%		0.52	%
Ratio of expenses to average net assets – gross			0.45	%		0.43	%		0.49	%		0.51	%		0.54	%
Ratio of net investment income / (loss) to average net assets			1.59	%		1.56	%		1.49	%		1.69	%		1.25	%
Portfolio turnover rate			3.28	%		3.42	%		5.73	%		1.59	%		0.84	%
Net assets, end of period (000’s)		$	302,821		$	309,019		$	290,666		$	279,875		$	79,766

⁽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, 2007
	SHARES		VALUE
COMMON STOCKS - 97.4%
Consumer Discretionary - 8.3%
Abercrombie & Fitch Co. - Class A		1,977	$	158,101
Amazon.Com, Inc. (a)		7,040		652,186
Apollo Group, Inc. (a)		3,137		220,061
AutoNation, Inc. (a)		3,213		50,316
Autozone, Inc. (a) (c)		1,013		121,469
Bed Bath & Beyond, Inc. (a)		6,073		178,485
Best Buy Co., Inc.		8,049		423,780
Big Lots, Inc. (a) (c)		2,075		33,179
Black & Decker Corp. (c)		1,434		99,878
Brunswick Corp. (c)		2,017		34,390
Carnival Corp.		10,018		445,701
CBS Corporation		15,708		428,043
Centex Corp. (c)		2,824		71,334
Circuit City Stores, Inc. (c)		3,261		13,696
Clear Channel Communications, Inc. (c)		11,418		394,149
Coach, Inc. (a)		8,442		258,156
Comcast Corp. - Class A (a)		70,506		1,287,440
D.R. Horton, Inc. (c)		6,452		84,973
Darden Restaurants, Inc.		3,152		87,342
Dillard’s, Inc. - Class A (c)		1,310		24,602
The DIRECTV Group, Inc. (a)		16,469		380,763
E.W. Scripps Co. (c)		1,973		88,805
Eastman Kodak Co. (c)		6,607		144,495
Expedia, Inc. (a)		4,800		151,776
Family Dollar Stores, Inc.		3,223		61,978
Ford Motor Co. (a) (c)		48,457		326,116
Fortune Brands, Inc.		3,537		255,937
GameStop Corp. (a)		3,700		229,807
Gannett Co., Inc.		5,323		207,597
The Gap, Inc.		10,685		227,377
General Motors Corp. (c)		12,984		323,172
Genuine Parts Co.		3,853		178,394
The Goodyear Tire & Rubber Co. (a) (c)		4,275		120,640
H&R Block, Inc.		7,458		138,495
Harley-Davidson, Inc.		5,538		258,680
Harman International Industries, Inc.		1,387		102,236
Harrah’s Entertainment, Inc.		4,302		381,803
Hasbro, Inc.		3,374		86,307
Home Depot, Inc.		38,697		1,042,497
IAC/InterActiveCorp (a)		4,229		113,845
International Game Technology		7,234		317,790
Interpublic Group of Companies, Inc. (a) (c)		10,538		85,463
J.C. Penney Co., Inc.		5,086		223,733
Johnson Controls, Inc.		13,620		490,865
Jones Apparel Group, Inc. (c)		1,955		31,260
KB Home (c)		1,817		39,247
Kohl’s Corp. (a)		7,194		329,485
Leggett & Platt, Inc.		3,903		68,068
Lennar Corp. (c)		3,261		58,339
Limited Brands, Inc.		7,126		134,895
Liz Claiborne, Inc. (c)		2,283		46,459
Lowe’s Companies, Inc.		33,552		758,946
Macys, Inc.		9,940		257,148
Marriott International, Inc. - Class A		7,173		245,173
Mattel, Inc.		8,412		160,164
McDonald’s Corp.		27,125		1,597,934
The McGraw-Hill Cos., Inc.		7,543		330,459

	SHARES		VALUE
Consumer Discretionary - 8.3% (Continued)
Meredith Corp. (c)		921	$	50,637
The New York Times Co. - Class A (c)		3,393		59,479
Newell Rubbermaid, Inc.		6,405		165,761
News Corp. - Class A		53,068		1,087,363
Nike, Inc. - Class B (c)		8,810		565,954
Nordstrom, Inc. (c)		4,311		158,343
Office Depot, Inc. (a)		6,263		87,118
OfficeMax, Inc. (c)		1,716		35,453
Omnicom Group, Inc. (c)		7,496		356,285
Polo Ralph Lauren Corp.		1,351		83,478
Pulte Homes, Inc. (c)		4,878		51,414
RadioShack Corp.		3,006		50,681
Sears Holdings Corp. (a) (c)		1,672		170,628
The Sherwin-Williams Co.		2,392		138,832
Snap-On, Inc.		1,366		65,896
The Stanley Works		1,705		82,658
Staples, Inc.		16,214		374,057
Starbucks Corp. (a)		16,748		342,832
Starwood Hotels & Resorts Worldwide, Inc.		4,569		201,173
Target Corp.		19,052		952,600
Tiffany & Co. (c)		3,199		147,250
Time Warner, Inc.		82,882		1,368,382
TJX Companies, Inc.		10,025		288,018
VF Corp.		2,118		145,422
Viacom, Inc. - Class B (a)		15,055		661,216
The Walt Disney Co.		43,607		1,407,634
The Washington Post Co. - Class B		135		106,843
Wendy’s International, Inc.		2,050		52,972
Whirlpool Corp.		1,775		144,893
Wyndham Worldwide Corp.		4,084		96,219
Yum! Brands, Inc.		11,669		446,573
				25,009,493
Consumer Staples - 10.0%
Altria Group, Inc.		48,304		3,650,816
Anheuser-Busch Companies, Inc.		16,827		880,725
Archer-Daniels-Midland Co.		14,742		684,471
Avon Products, Inc.		9,839		388,936
Brown-Forman Corp. - Class B		1,864		138,141
Campbell Soup Co.		5,114		182,723
Clorox Co. (c)		3,227		210,304
The Coca-Cola Co.		45,586		2,797,613
Coca-Cola Enterprises, Inc.		6,622		172,371
Colgate-Palmolive Co.		11,691		911,430
ConAgra Foods, Inc.		11,164		265,592
Constellation Brands, Inc. - Class A (a) (c)		4,446		105,103
Costco Wholesale Corp.		9,955		694,461
CVS Caremark Corp.		33,874		1,346,492
Dean Foods Co.		3,049		78,847
The Estee Lauder Companies, Inc.		2,612		113,909
General Mills, Inc.		7,698		438,786
The Hershey Co. (c)		3,853		151,808
HJ Heinz Co.		7,269		339,317
Kellogg Co.		5,878		308,184
Kimberly-Clark Corp.		9,702		672,737
Kraft Foods, Inc.		35,477		1,157,615
The Kroger Co.		15,620		417,210
McCormick & Co., Inc. (c)		2,930		111,076
Molson Coors Brewing Co. - Class B		3,228		166,629

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 - 10.0% (Continued)
Pepsi Bottling Group, Inc.		3,107	$	122,602
PepsiCo, Inc.		36,911		2,801,545
Procter & Gamble Co.		71,222		5,229,119
Reynolds American, Inc. (c)		3,924		258,827
Safeway, Inc.		10,150		347,232
Sara Lee Corp.		16,606		266,692
Supervalu, Inc.		4,928		184,899
Sysco Corp.		13,945		435,223
Tyson Foods, Inc. - Class A		5,962		91,398
UST, Inc. (c)		3,594		196,951
Walgreen Co.		22,744		866,092
Wal-Mart Stores, Inc.		54,180		2,575,175
Whole Foods Market, Inc. (c)		3,198		130,478
WM Wrigley Jr. Co.		5,080		297,434
				30,188,963
Energy - 12.5%
Anadarko Petroleum Corp.		10,696		702,620
Apache Corp.		7,594		816,659
Baker Hughes, Inc.		7,300		592,030
BJ Services Co.		6,718		162,979
Chesapeake Energy Corp. (c)		9,676		379,299
Chevron Corp.		48,420		4,519,039
ConocoPhillips		36,678		3,238,667
Consol Energy, Inc. (c)		4,161		297,595
Devon Energy Corp.		10,204		907,238
El Paso Corp. (c)		16,072		277,081
ENSCO International, Inc. (c)		3,324		198,177
EOG Resources, Inc.		5,641		503,459
Exxon Mobil Corp.		125,280		11,737,483
Halliburton Co.		20,210		766,161
Hess Corp. (c)		6,388		644,294
Marathon Oil Corp.		16,290		991,409
Murphy Oil Corp.		4,314		366,000
Nabors Industries Ltd. (a) (c)		6,586		180,391
National Oilwell Varco, Inc. (a)		8,180		600,903
Noble Energy, Inc.		3,937		313,070
Noble Corp.		6,148		347,423
Occidental Petroleum Corp.		19,000		1,462,810
Peabody Energy Corp.		6,073		374,340
Range Resources Corp. (c)		3,420		175,651
Rowan Companies, Inc. (c)		2,552		100,702
Schlumberger Ltd.		27,435		2,698,781
Smith International, Inc. (c)		4,597		339,488
Spectra Energy Corp.		14,499		374,364
Sunoco, Inc.		2,697		195,371
Tesoro Corp. (c)		3,143		149,921
Transocean, Inc. (a)		7,358		1,053,254
Valero Energy Corp.		12,622		883,919
Weatherford International Ltd. (a)		7,739		530,895
Williams Companies, Inc.		13,614		487,109
XTO Energy, Inc. (c)		10,978		563,804
				37,932,386
Financials - 17.1%
ACE Ltd.		7,559		466,995
Aflac, Inc.		11,190		700,830
The Allstate Corp.		13,092		683,795
AMBAC Financial Group, Inc. (c)		2,419		62,338
American Capital Strategies Ltd. (c)		4,140		136,454

	SHARES		VALUE
Financials - 17.1% (Continued)
American Express Co.		26,830	$	1,395,697
American International Group, Inc.		58,166		3,391,078
Ameriprise Financial, Inc.		5,318		293,075
AON Corp.		6,733		321,097
Apartment Investment & Management Co. (c)		2,192		76,128
Assurant, Inc. (c)		2,191		146,578
AvalonBay Communities, Inc. (c)		1,780		167,569
Bank of America Corp.		101,770		4,199,030
The Bank Of New York Mellon Corp.		26,115		1,273,367
BB&T Corp.		12,603		386,534
The Bear Stearns Companies, Inc. (c)		2,648		233,686
Boston Properties, Inc. (c)		2,769		254,222
Capital One Financial Corp.		8,950		422,977
CB Richard Ellis Group, Inc. (a) (c)		4,400		94,820
The Charles Schwab Corp.		21,488		549,018
Chubb Corp.		8,804		480,522
Cincinnati Financial Corp.		3,808		150,568
CIT Group, Inc.		4,349		104,507
Citigroup, Inc.		114,511		3,371,204
CME Group, Inc.		1,260		864,360
Comerica, Inc.		3,465		150,832
Commerce Bancorp, Inc.		4,441		169,380
Countrywide Financial Corp. (c)		13,284		118,759
Developers Diversified Realty Corp. (c)		2,818		107,901
Discover Financial Services		10,951		165,141
E*Trade Financial Corp. (a) (c)		9,717		34,495
Equity Residential		6,216		226,698
Fannie Mae		22,447		897,431
Federated Investors, Inc. (c)		2,037		83,843
Fifth Third Bancorp		12,219		307,064
First Horizon National Corp. (c)		2,973		53,960
Franklin Resources, Inc.		3,708		424,306
Freddie Mac		15,138		515,752
General Growth Properties, Inc.		5,592		230,279
Genworth Financial, Inc.		9,857		250,861
Goldman Sachs Group, Inc.		9,122		1,961,686
Hartford Financial Services Group, Inc.		7,197		627,506
Host Hotels & Resorts, Inc.		11,979		204,122
Hudson City Bancorp, Inc. (c)		11,413		171,423
Huntington Bancshares, Inc. (c)		8,396		123,925
Intercontinentalexchange, Inc. (a)		1,650		317,625
Janus Capital Group, Inc. (c)		3,518		115,566
JPMorgan Chase & Co.		77,040		3,362,796
KeyCorp		8,919		209,151
Kimco Realty Corp. (c)		5,787		210,647
Legg Mason, Inc.		3,140		229,691
Lehman Brothers Holdings, Inc.		12,156		795,489
Leucadia National Corp. (c)		3,880		182,748
Lincoln National Corp.		6,190		360,382
Loews Corp.		10,080		507,427
M&T Bank Corp.		1,786		145,684
Marsh & McLennan Companies, Inc.		11,927		315,708
Marshall & Ilsley Corp.		5,896		156,126
MBIA, Inc. (c)		2,880		53,654
Merrill Lynch & Co., Inc. (c)		19,625		1,053,470
MetLife, Inc.		16,985		1,046,616
MGIC Investment Corp. (c)		1,962		44,008
Moody’s Corp. (c)		4,917		175,537
Morgan Stanley		24,339		1,292,644

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 - 17.1% (Continued)
National City Corp. (c)		14,537	$	239,279
Northern Trust Corp.		4,467		342,083
NYSE Euronext		6,090		534,519
Plum Creek Timber Co., Inc. (c)		3,953		181,996
PNC Financial Services Group, Inc.		8,017		526,316
Principal Financial Group, Inc.		6,001		413,109
The Progressive Corp.		16,008		306,713
Prologis		5,910		374,576
Prudential Financial, Inc.		10,414		968,919
Public Storage, Inc.		2,938		215,679
Regions Financial Corp. (c)		15,945		377,099
Safeco Corp.		2,205		122,774
Simon Property Group, Inc.		5,115		444,289
SLM Corp.		11,793		237,511
Sovereign Bancorp, Inc. (c)		8,265		94,221
State Street Corp.		8,857		719,188
SunTrust Banks, Inc.		8,009		500,482
T. Rowe Price Group, Inc.		6,055		368,628
Torchmark Corp.		2,114		127,960
The Travelers Companies, Inc.		14,786		795,487
Unum Group		8,098		192,651
US Bancorp		39,605		1,257,063
Vornado Realty Trust		3,119		274,316
Wachovia Corp.		45,308		1,723,063
Washington Mutual, Inc. (c)		19,920		271,111
Wells Fargo & Co.		77,374		2,335,921
XL Capital Ltd. - Class A		4,090		205,768
Zions Bancorporation		2,478		115,698
				51,893,201
Health Care - 11.7%
Abbott Laboratories		35,433		1,989,563
Aetna, Inc.		11,478		662,625
Allergan, Inc.		7,041		452,314
AmerisourceBergen Corp.		3,852		172,839
Amgen, Inc. (a)		24,940		1,158,214
Applera Corp. - Applied Biosystems Group (c)		3,857		130,829
Barr Pharmaceuticals, Inc. (a) (c)		2,560		135,936
Baxter International, Inc.		14,542		844,163
Becton, Dickinson & Co.		5,594		467,547
Biogen Idec, Inc. (a)		6,752		384,324
Boston Scientific Corp. (a)		30,792		358,111
Bristol-Myers Squibb Co.		45,367		1,203,133
C.R. Bard, Inc. (c)		2,338		221,642
Cardinal Health, Inc.		8,291		478,805
Celgene Corp. (a)		8,848		408,866
CIGNA Corp.		6,403		344,033
Coventry Health Care, Inc. (a)		3,554		210,575
Covidien Ltd.		11,420		505,792
Eli Lilly & Co.		22,629		1,208,162
Express Scripts, Inc. (a)		5,781		422,013
Forest Laboratories, Inc. (a)		7,151		260,654
Genzyme Corp. (a)		6,192		460,933
Gilead Sciences, Inc. (a)		21,347		982,175
Hospira, Inc. (a) (c)		3,687		157,214
Humana, Inc. (a)		3,969		298,905
IMS Health, Inc.		4,451		102,551
Johnson & Johnson		65,620		4,376,854
King Pharmaceuticals, Inc. (a)		5,611		57,457
Laboratory Corp. of America Holdings (a) (c)		2,642		199,550

	SHARES		VALUE
Health Care - 11.7% (Continued)
McKesson Corp.		6,638	$	434,855
Medco Health Solutions, Inc. (a)		6,135		622,089
Medtronic, Inc.		25,936		1,303,803
Merck & Co., Inc.		49,917		2,900,677
Millipore Corp. (a) (c)		1,304		95,427
Mylan, Inc. (c)		5,072		71,312
Patterson Companies, Inc. (a) (c)		3,207		108,878
PerkinElmer, Inc.		2,720		70,774
Pfizer, Inc.		156,674		3,561,200
Quest Diagnostics, Inc. (c)		3,597		190,281
Schering-Plough Corp.		37,154		989,783
St. Jude Medical, Inc. (a)		7,851		319,065
Stryker Corp.		5,462		408,121
Tenet Healthcare Corp. (a) (c)		10,871		55,225
Thermo Fisher Scientific, Inc. (a)		9,674		557,996
UnitedHealth Group, Inc.		29,634		1,724,699
Varian Medical Systems, Inc. (a)		2,869		149,647
Waters Corp. (a)		2,400		189,768
Watson Pharmaceuticals, Inc. (a)		2,460		66,764
Wellpoint, Inc. (a)		13,101		1,149,351
Wyeth		30,707		1,356,942
Zimmer Holdings, Inc. (a)		5,383		356,085
				35,338,521
Industrials - 11.2%
3M Co.		16,357		1,379,222
Allied Waste Industries, Inc. (a) (c)		5,518		60,808
Avery Dennison Corp. (c)		2,166		115,101
Boeing Co.		17,780		1,555,039
Burlington Northern Santa Fe Corp.		6,834		568,794
C.H. Robinson Worldwide, Inc. (c)		3,895		210,797
Caterpillar, Inc.		14,591		1,058,723
Cintas Corp.		3,097		104,121
Cooper Industries Ltd. - Class A		4,133		218,553
CSX Corp.		9,641		424,011
Cummins, Inc.		2,352		299,574
Danaher Corp.		5,682		498,539
Deere & Co.		10,177		947,682
Dover Corp. (c)		4,558		210,078
Eaton Corp.		3,455		334,962
Emerson Electric Co.		18,051		1,022,770
Equifax, Inc.		2,951		107,298
Expeditors International Washington, Inc.		4,900		218,932
FedEx Corp.		7,090		632,215
Fluor Corp.		2,113		307,906
General Dynamics Corp.		9,228		821,200
General Electric Co.		231,795		8,592,641
Goodrich Corp.		2,865		202,298
Honeywell International, Inc.		17,124		1,054,325
Illinois Tool Works, Inc.		9,480		507,559
Ingersoll-Rand Company Ltd. - Class A		6,247		290,298
ITT Corp.		4,159		274,660
Jacobs Engineering Group, Inc. (a)		2,860		273,445
L-3 Communications Holdings, Inc.		2,887		305,849
Lockheed Martin Corp.		7,957		837,554
Manitowoc Co. (c)		2,920		142,584
Masco Corp. (c)		8,457		182,756
Monster Worldwide, Inc. (a) (c)		2,935		95,094
Norfolk Southern Corp.		8,885		448,159
Northrop Grumman Corp.		7,761		610,325

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 - 11.2% (Continued)
Paccar, Inc.		8,451	$	460,410
Pall Corp.		2,907		117,210
Parker Hannifin Corp.		3,860		290,697
Pitney Bowes, Inc.		4,974		189,211
Precision Castparts Corp.		3,160		438,292
Raytheon Co.		9,844		597,531
Robert Half International, Inc. (c)		3,696		99,940
Rockwell Automation, Inc.		3,424		236,119
Rockwell Collins, Inc.		3,739		269,096
RR Donnelley & Sons Co. (c)		4,923		185,794
Ryder System, Inc. (c)		1,331		62,570
Southwest Airlines Co.		16,845		205,509
Terex Corp. (a) (c)		2,354		154,352
Textron, Inc.		5,720		407,836
Trane, Inc.		3,931		183,617
Tyco International Ltd.		11,349		449,988
Union Pacific Corp.		6,022		756,484
United Parcel Service, Inc. - Class B		24,093		1,703,857
United Technologies Corp.		22,670		1,735,162
W.W. Grainger, Inc.		1,545		135,218
Waste Management, Inc.		11,660		380,932
				33,973,697
Information Technology - 16.4%
Adobe Systems, Inc. (a)		13,160		562,327
Advanced Micro Devices, Inc. (a) (c)		13,038		97,785
Affiliated Computer Services, Inc. - Class A (a)		2,305		103,956
Agilent Technologies, Inc. (a)		8,866		325,737
Akamai Technologies, Inc. (a) (c)		3,812		131,895
Altera Corp.		7,702		148,803
Analog Devices, Inc.		6,956		220,505
Apple, Inc. (a)		20,078		3,977,050
Applied Materials, Inc.		31,600		561,216
Autodesk, Inc. (a)		5,295		263,479
Automatic Data Processing, Inc.		12,069		537,433
BMC Software, Inc. (a)		4,490		160,024
Broadcom Corp. - Class A (a)		10,789		282,024
CA, Inc.		9,060		226,047
Ciena Corp. (a) (c)		2,028		69,175
Cisco Systems, Inc. (a)		139,016		3,763,163
Citrix Systems, Inc. (a)		4,269		162,265
Cognizant Technology Solutions Corp. (a)		6,660		226,040
Computer Sciences Corp. (a)		4,082		201,937
Compuware Corp. (a)		6,570		58,342
Convergys Corp. (a)		2,987		49,166
Corning, Inc.		36,134		866,855
Dell, Inc. (a)		51,386		1,259,471
eBay, Inc. (a)		26,086		865,794
Electronic Arts, Inc. (a)		7,306		426,744
Electronic Data Systems Corp.		11,743		243,432
EMC Corp. (a)		48,112		891,515
Fidelity National Information Services, Inc.		3,846		159,955
Fiserv, Inc. (a)		3,776		209,530
Google, Inc. (a)		5,310		3,671,759
Hewlett-Packard Co.		59,115		2,984,125
Intel Corp.		134,071		3,574,333
International Business Machines Corp.		31,599		3,415,852
Intuit, Inc. (a)		7,630		241,184
Jabil Circuit, Inc.		4,296		65,600
JDS Uniphase Corp. (a) (c)		4,991		66,380

	SHARES		VALUE
Information Technology - 16.4% (Continued)
Juniper Networks, Inc. (a)		12,000	$	398,400
Kla-Tencor Corp. (c)		4,247		204,536
Lexmark International, Inc. - Class A (a)		2,228		77,668
Linear Technology Corp. (c)		5,175		164,720
LSI Corp. (a) (c)		16,217		86,112
MEMC Electronic Materials, Inc. (a) (c)		5,300		468,997
Microchip Technology, Inc. (c)		4,914		154,398
Micron Technology, Inc. (a)		17,437		126,418
Microsoft Corp. (e)		184,536		6,569,482
Molex, Inc.		3,347		91,373
Motorola, Inc.		52,411		840,672
National Semiconductor Corp.		5,391		122,052
Network Appliance, Inc. (a) (c)		7,893		197,009
Novell, Inc. (a)		8,012		55,042
Novellus Systems, Inc. (a)		2,665		73,474
Nvidia Corp. (a)		12,625		429,503
Oracle Corp. (a)		90,461		2,042,609
Paychex, Inc.		7,652		277,155
QLogic Corp. (a)		3,191		45,312
Qualcomm, Inc.		37,534		1,476,963
SanDisk Corp. (a)		5,299		175,768
Sun Microsystems, Inc. (a)		19,000		344,470
Symantec Corp. (a)		19,887		320,976
Tellabs, Inc. (a) (c)		10,085		65,956
Teradata Corp. (a)		4,232		115,999
Teradyne, Inc. (a)		3,982		41,174
Texas Instruments, Inc.		32,070		1,071,138
Total Sys Svcs, Inc. (a)		4,540		127,120
Tyco Electronics Ltd.		11,413		423,765
Unisys Corp. (a)		7,990		37,793
VeriSign, Inc. (a)		5,068		190,608
The Western Union Co.		17,226		418,247
Xerox Corp. (a)		21,197		343,179
Xilinx, Inc.		6,742		147,448
Yahoo!, Inc. (a)		30,657		713,082
				49,509,516
Materials - 3.2%
Air Products & Chemicals, Inc.		4,942		487,430
Alcoa, Inc.		19,453		711,007
Allegheny Technologies, Inc.		2,437		210,557
Ashland, Inc.		1,366		64,789
Ball Corp. (c)		2,305		103,725
Bemis Co. (c)		2,307		63,166
The Dow Chemical Co.		21,661		853,877
Eastman Chemical Co.		1,859		113,566
Ecolab, Inc.		4,006		205,147
EI Du Pont de Nemours & Co.		20,620		909,136
Freeport-McMoRan Copper & Gold, Inc. - Class B		8,858		907,414
Hercules, Inc.		2,743		53,077
International Flavors & Fragrances, Inc.		1,831		88,126
International Paper Co.		9,821		318,004
MeadWestvaco Corp.		4,314		135,028
Monsanto Co.		12,540		1,400,593
Newmont Mining Corp.		10,363		506,025
Nucor Corp.		6,603		391,030
Pactiv Corp. (a) (c)		3,072		81,807
PPG Industries, Inc.		3,758		263,924
Praxair, Inc.		7,247		642,881
Rohm & Haas Co.		2,962		157,193

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 - 3.2% (Continued)
Sealed Air Corp. (c)		3,707	$	85,780
Sigma-Aldrich Corp. (c)		2,984		162,926
Titanium Metals Corp. (a) (c)		2,040		53,958
United States Steel Corp.		2,725		329,480
Vulcan Materials Co. (c)		2,247		177,715
Weyerhaeuser Co.		4,808		354,542
				9,831,903
Telecommunication Services - 3.5%
American Tower Corp. - Class A (a)		9,283		395,456
AT&T, Inc.		139,097		5,780,871
CenturyTel, Inc. (c)		2,532		104,977
Citizens Communications Co.		7,522		95,755
Embarq Corp.		3,597		178,159
Qwest Communications International, Inc. (a) (c)		36,056		252,753
Sprint Nextel Corp.		65,263		856,903
Verizon Communications, Inc.		66,275		2,895,555
Windstream Corp.		10,949		142,556
				10,702,985
Utilities - 3.5%
The AES Corp. (a)		15,346		328,251
Allegheny Energy, Inc. (a)		3,812		242,481
Ameren Corp.		4,860		263,461
American Electric Power Co., Inc.		9,173		427,095
Centerpoint Energy, Inc.		7,371		126,265
CMS Energy Corp. (c)		5,162		89,716
Consolidated Edison, Inc.		5,921		289,241
Constellation Energy Group, Inc.		4,144		424,884
Dominion Resources, Inc.		13,413		636,447
DTE Energy Co. (c)		3,755		165,070
Duke Energy Corporation		28,929		583,498
Dynegy, Inc. (a) (c)		11,384		81,282
Edison International		7,471		398,727
Entergy Corp.		4,456		532,581
Exelon Corp.		15,133		1,235,458
FirstEnergy Corp.		6,991		505,729
FPL Group, Inc.		9,337		632,862
Integrys Energy Group, Inc.		1,780		92,008
Nicor, Inc. (c)		1,117		47,305
NiSource, Inc.		6,291		118,837
Pepco Holdings, Inc.		4,500		131,985

	SHARES		VALUE
Utilities - 3.5% (Continued)
PG&E Corp.		8,119	$	349,848
Pinnacle West Capital Corp. (c)		2,391		101,402
PPL Corp.		8,535		444,588
Progress Energy, Inc.		5,988		289,999
Public Service Enterprise Group, Inc.		5,832		572,936
Questar Corp.		3,960		214,236
Sempra Energy		5,996		371,032
Southern Co.		17,415		674,831
TECO Energy, Inc. (c)		4,834		83,193
Xcel Energy, Inc.		9,640		217,575
				10,672,823
TOTAL COMMON STOCKS
(Cost $202,155,889)				295,053,488
SHORT TERM INVESTMENTS (e) - 1.2%
Money Market Funds - 0.4%
Northern Institutional Diversified Assets Portfolio		1,308,251		1,308,251
	PRINCIPAL
	AMOUNT		VALUE
U.S. Treasury Bills - 0.8%
2.886%, 03/13/2008	$	2,000,000	$	1,987,870
2.995%, 03/13/2008		250,000		248,484
TOTAL SHORT TERM INVESTMENTS
(Cost $3,545,445)				3,544,605
Total Investments (Cost $205,701,334) (b) - 98.6%				298,598,093
Northern Institutional Liquid Assets Portfolio (d) - 6.2%				18,671,468
Liabilities in Excess of Other Assets - (4.8)%				(14,448,826	)
TOTAL NET ASSETS - 100.0%			$	302,820,735

(a) Non-income producing security.

(b) For federal income tax purposes, cost is $206,330,652 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $109,451,818, and ($17,184,377), respectively, with a net appreciation / (depreciation) of $92,267,441.

(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 values of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted are $18,257,935, $18,671,468, and $82,683, respectively.

(e) Securities and other assets with an aggregate value of $9,232,500 have been segregated with the custodian or designated to cover margin requirements for the following open futures contracts as of December 31, 2007:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
S&P 500 Index (03/08)	25	($42,512)

The accompanying notes are an 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, 2007
ASSETS
Investments in securities, at value	$	298,598,093
Collateral for securities loaned,
at fair value		18,671,468
Receivables:
Securities sold		8,167,607
Shares sold		41,677
Interest and dividends		454,422
Prepaid expenses and other		8,851
		325,942,118
LIABILITIES
Payables:
Payable upon return of securities loaned		18,671,468
Payable for securities purchased		2,273,177
Shares redeemed		1,925,539
Variation margin		53,683
Bank overdraft		103
Advisory fees		44,478
Royalty fees		37,457
Professional fees		29,690
Fund accounting fees		29,414
Administration fees		26,216
Custodian fees		8,472
Directors’ fees		604
Other accrued expenses		21,082
		23,121,383
NET ASSETS*
Paid-in capital		203,310,066
Accumulated undistributed net investment
income / (loss)		4,029,732
Accumulated net realized gain / (loss)
on investments and futures contracts		2,626,690
Net unrealized appreciation / (depreciation)
on investments and futures contracts		92,854,247
	$	302,820,735
Investments at cost	$	205,701,334
Shares authorized ($.10 par value)		30,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$302,820,735	3,107,876	$	97.44

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2007
	Percentage of ordinary distributions designated as
	qualified dividend income		100%
	Dividends received deduction for corporate shareholders		100%
	Undistributed ordinary income	$	4,029,732
	Undistributed long-term gains	$	3,207,788
	Unrealized appreciation	$	92,224,929

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Interest	$	11,393
Dividends		6,182,333
Other income		27,581
		6,221,307
EXPENSES
Advisory fees		786,587
Administration fees		314,635
Fund accounting fees		72,309
Professional fees		53,118
Royalty fee		38,246
Directors’ fees		37,802
Shareholder reporting fees		31,878
Custodian fees		31,352
Transfer agent fees		17,717
Other expenses		30,648
		1,414,292
Reimbursements and waivers		(187,215	)
		1,227,077
NET INVESTMENT INCOME / (LOSS)		4,994,230
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		6,330,458
Net realized gain / (loss) on futures contracts		67,669
		6,398,127
Net change in unrealized appreciation /
(depreciation) on investments and
futures contracts		4,451,818
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		10,849,945
NET INCREASE / (DECREASE)
IN NET ASSETS FROM OPERATIONS	$	15,844,175

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
	Advisory	Administration	Expense	Reimbursements
	Fee	Fee	Limit(1)	and Waivers
	0.25%	0.10%	0.60%	$187,215
(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 May 31, 2009.

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
For the Year Ended December 31,
	2007			2006
OPERATIONS
Net investment income / (loss)	$	4,994,230		$	4,624,747
Net realized gain / (loss) on investments and futures		6,398,127			119,132
Net change in unrealized appreciation / (depreciation) on investments		4,451,818			37,598,822
		15,844,175			42,342,701
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(4,633,890	)		(4,336,685	)
Net realized gain on investments		(512,279	)		—
		(5,146,169	)		(4,336,685	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		20,116,509			18,021,377
Reinvestment of distributions		5,146,169			4,336,685
Payments for shares redeemed		(42,159,091	)		(42,010,623	)
		(16,896,413	)		(19,652,561	)
NET INCREASE / (DECREASE) IN NET ASSETS		(6,198,407	)		18,353,455
NET ASSETS
Beginning of period		309,019,142			290,665,687
End of period	$	302,820,735		$	309,019,142
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	4,029,732		$	3,896,516

FUND SHARE TRANSACTIONS
Sold	$	104,665			206,398
Reinvestment of distributions		54,216			51,092
Redeemed		(201,690	)		(484,937	)
Net increase / (decrease) from fund share transactions		(42,809	)		(227,447	)
TOTAL COST OF PURCHASES OF:
Common Stocks	$	3,942,049		$	10,049,182
	$	3,942,049		$	10,049,182
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	13,946,992		$	25,577,773
	$	13,946,992		$	25,577,773
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	4,804,301		$	4,336,685
Long-term capital gains		341,868			—
	$	5,146,169		$	4,336,685

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 Class I - Average Annual Total Return
1-Year	5-Year	Since Inception
7.38%	15.52%	9.65%

Summit S&P Midcap 400 Index Portfolio Class F - Average Annual Total Return
1-Year	5-Year	Since Inception
7.18%	5.29%	9.44%

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. Prior to October 1, 2007, Class F share performance is based on Class I performance. 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 Kevin P. Aug
Inception Date:	May 3, 1999
Total Net Assets:	$172.22 Million
Number of Equity Holdings:	402
Median Cap Size:	$2,606 (in millions)
Average Price-to-book Ratio:	2.42 x
Dividend Yield:	1.30%

Top 10 Equity Holdings  Sector Allocations

	(% of net assets)
Intuitive Surgical, Inc. Cameron International Corp. Southwestern Energy Co. Activision, Inc. Hologic, Inc. Harris Corp. Amphenol Corp. - Class A FMC Technologies, Inc. Denbury Resources, Inc. Joy Global, Inc.	1.07% 0.91% 0.82% 0.75% 0.74% 0.74% 0.71% 0.64% 0.63% 0.61%

 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 period ended December 31, 2007, the Summit S&P MidCap 400 Index Portfolio’s (Class I) total return was 7.38% (before the impact of any product or contract-level fees). This compares to an 7.98% 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

	Class I
	Year Ended December 31,
		2007			2006			2005			2004			2003
Net asset value, beginning of period		$	69.23		$	66.08		$	60.76		$	52.62		$	39.29
INVESTMENT ACTIVITIES:
Net investment income / (loss)			0.67			0.67			0.52			0.35	(5)		0.29
Net realized and unrealized gains / (losses)			4.44			5.64			6.50			7.93			13.28
Total from Investment Activities			5.11			6.31			7.02			8.28			13.57
DISTRIBUTIONS:
Net investment income			(0.66	)		(0.59	)		(0.33	)		(0.14	)		(0.24	)
Net realized gains			(2.99	)		(2.57	)		(1.37	)		—			—
Total Distributions			(3.65	)		(3.16	)		(1.70	)		(0.14	)		(0.24	)
Net asset value, end of period		$	70.69		$	69.23		$	66.08		$	60.76		$	52.62
Total return			7.38	%		9.72	%		11.94	%		15.76	%		34.74	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net(1)			0.52	%		0.52	%		0.54	%		0.56	%		0.60	%
Ratio of expenses to average net assets – gross			0.52	%		0.52	%		0.54	%		0.56	%		0.67	%
Ratio of net investment income / (loss) to average net assets			1.11	%		1.15	%		0.91	%		0.68	%		0.58	%
Portfolio turnover rate(2)			22.63	%		14.35	%		19.07	%		15.08	%		8.54	%
Net assets, end of period (000’s)		$	172,221		$	144,136		$	127,372		$	99,775		$	39,944

	Class F
	Year Ended
	December 31,
	2007(3)
Net asset value, beginning of period	$	73.77
INVESTMENT ACTIVITIES:
Net investment income / (loss)		0.16
Net realized and unrealized gains / (losses)		(3.27	)
Total from Investment Activities		(3.11	)
DISTRIBUTIONS:
Net investment income		—
Net realized gains		—
Total Distributions		—
Net asset value, end of period	$	70.66
Total return		-4.21	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net(1)		0.71	%(4)
Ratio of expenses to average net assets – gross		0.71	%(4)
Ratio of net investment income / (loss) to average net assets		0.89	%(4)
Portfolio turnover rate(2)		22.63	%
Net assets, end of period (000’s)	$	1

(1)	Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.
(2)	Portfolio Turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(3)	Portfolio commenced operations on October 1, 2007.
(4)	Annualized.
(5)	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, 2007
	SHARES		VALUE
COMMON STOCKS - 97.9%
Consumer Discretionary - 11.7%
99 Cents Only Stores (a) (c)		6,977	$	55,537
Advance Auto Parts, Inc.		14,885		565,481
Aeropostale, Inc. (a) (c)		9,952		263,728
American Eagle Outfitters, Inc.		31,818		660,860
American Greetings Corp. - Class A (c)		8,250		167,475
AnnTaylor Stores Corp. (a)		9,123		233,184
ArvinMeritor, Inc. (c)		10,787		126,532
Barnes & Noble, Inc.		7,157		246,559
Belo Corp.		13,083		228,168
Blyth, Inc.		3,595		78,874
Bob Evans Farms, Inc. (c)		4,921		132,523
Borders Group, Inc. (c)		8,741		93,092
BorgWarner, Inc.		17,240		834,588
Boyd Gaming Corp. (c)		8,351		284,519
Brinker International, Inc.		15,646		306,036
Callaway Golf Co. (c)		9,858		171,825
Career Education Corp. (a)		13,547		340,572
Carmax, Inc. (a) (c)		32,394		639,781
CBRL Group, Inc. (c)		3,531		114,369
Charming Shoppes (a) (c)		17,345		93,836
The Cheesecake Factory, Inc. (a) (c)		10,607		251,492
Chico’s FAS, Inc. (a)		26,211		236,685
Chipotle Mexican Grill, Inc. (a) (c)		4,905		721,378
Coldwater Creek, Inc. (a) (c)		8,912		59,621
Collective Brands, Inc. (a) (c)		9,736		169,309
Corinthian Colleges, Inc. (a) (c)		12,607		194,148
DeVry, Inc.		8,907		462,808
Dick’s Sporting Goods, Inc. (a) (c)		12,374		343,502
Dollar Tree Stores, Inc. (a)		13,672		354,378
Entercom Communications Corp. (c)		3,918		53,637
Foot Locker, Inc.		22,978		313,879
Furniture Brands International, Inc. (c)		7,208		72,512
Gentex Corp. (c)		21,491		381,895
Getty Images, Inc. (a) (c)		7,081		205,349
Guess ?, Inc.		8,137		308,311
Hanesbrands, Inc. (a)		14,167		384,917
Harte-Hanks, Inc.		7,129		123,332
Hovnanian Enterprises, Inc. - Class A (a) (c)		5,455		39,112
International Speedway Corp. - Class A (c)		4,598		189,346
ITT Educational Services, Inc. (a)		4,376		373,142
John Wiley & Sons, Inc.		6,687		286,471
Lamar Advertising Co. (c)		11,799		567,178
Lear Corp. (a) (c)		11,459		316,956
Lee Enterprises, Inc. (c)		5,957		87,270
Life Time Fitness, Inc. (a) (c)		4,998		248,301
Matthews International Corp. (c)		4,625		216,774
MDC Holdings, Inc. (c)		5,180		192,333
Media General, Inc. - Class A (c)		3,360		71,400
Modine Manufacturing Co. (c)		4,818		79,545
Mohawk Industries, Inc. (a) (c)		8,232		612,461
NetFlix, Inc. (a) (c)		7,137		189,987
NVR, Inc. (a) (c)		764		400,336
O’Reilly Automotive, Inc. (a) (c)		17,103		554,650
Pacific Sunwear of California, Inc. (a) (c)		10,512		148,324
PetSmart, Inc. (c)		19,123		449,964
Phillips-Van Heusen Corp.		8,393		309,366
Regis Corp. (c)		6,553		183,222
Rent-A-Center, Inc. (a) (c)		9,948		144,445

	SHARES		VALUE
Consumer Discretionary - 11.7% (Continued)
Ross Stores, Inc.		20,136	$	514,878
Ruby Tuesday, Inc. (c)		7,684		74,919
Ryland Group, Inc. (c)		6,255		172,325
Saks, Inc. (a) (c)		21,078		437,579
Scholastic Corp. (a) (c)		3,889		135,687
Scientific Games Corp. - Class A (a) (c)		9,659		321,162
Sotheby’s		9,893		376,923
Thor Industries, Inc. (c)		5,151		195,790
Timberland Co. (a) (c)		7,377		133,376
Toll Brothers, Inc. (a)		18,881		378,753
Tupperware Brands Corp.		9,159		302,522
Urban Outfitters, Inc. (a) (c)		16,792		457,750
Valassis Communications, Inc. (a) (c)		7,130		83,350
Warnaco Group, Inc. (a)		6,783		236,048
Williams-Sonoma, Inc. (c)		13,096		339,186
				20,095,523
Consumer Staples - 3.2%
Alberto-Culver Co.		12,451		305,547
BJ’s Wholesale Club, Inc. (a)		9,528		322,332
Church & Dwight, Inc. (c)		9,813		530,589
Corn Products International, Inc.		11,123		408,770
Energizer Holdings, Inc. (a)		8,537		957,254
Hansen Natural Corp. (a) (c)		8,916		394,890
Hormel Foods Corp.		10,755		435,362
The JM Smucker Co.		8,554		440,018
Lancaster Colony Corp. (c)		3,201		127,080
NBTY, Inc. (a)		8,343		228,598
PepsiAmericas, Inc.		8,900		296,548
Ruddick Corp. (c)		5,534		191,864
Smithfield Foods, Inc. (a) (c)		17,366		502,225
Tootsie Roll Industries, Inc. (c)		4,012		110,009
Universal Corp. (c)		4,065		208,209
				5,459,295
Energy - 9.6%
Arch Coal, Inc. (c)		21,273		955,796
Bill Barrett Corp. (a) (c)		5,011		209,811
Cameron International Corp. (a)		32,510		1,564,706
Cimarex Energy Co. (c)		12,260		521,418
Denbury Resources, Inc. (a)		36,331		1,080,847
Encore Acquisition Co. (a) (c)		8,066		269,162
Exterran Holdings, Inc. (a) (c)		9,776		799,677
FMC Technologies, Inc. (a)		19,336		1,096,351
Forest Oil Corp. (a)		12,951		658,429
Frontier Oil Corp.		15,674		636,051
Grant Prideco, Inc. (a)		18,883		1,048,195
Helmerich & Payne, Inc. (c)		15,388		616,597
Newfield Exploration Co. (a)		19,457		1,025,384
Overseas Shipholding Group, Inc. (c)		4,300		320,049
Patterson-UTI Energy, Inc.		23,042		449,780
Pioneer Natural Resources Co.		17,763		867,545
Plains Exploration & Production Co. (a)		17,065		921,510
Pride International, Inc. (a)		24,816		841,262
Quicksilver Resources, Inc. (a) (c)		7,642		455,387
Southwestern Energy Co. (a) (c)		25,365		1,413,338
Superior Energy Services (a) (c)		11,968		411,939
Tidewater, Inc. (c)		8,163		447,822
				16,611,056

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 - 15.1%
Alexandria Real Estate Equities, Inc.		4,738	$	481,712
AMB Property Corp.		14,725		847,571
American Financial Group, Inc.		10,807		312,106
AmeriCredit Corp. (a) (c)		16,981		217,187
Arthur J. Gallagher & Co. (c)		13,962		337,741
Associated Banc-Corp		18,901		512,028
Astoria Financial Corp.		12,138		282,451
Bank of Hawaii Corp. (c)		7,288		372,708
BRE Properties (c)		7,547		305,880
Brown & Brown, Inc. (c)		16,969		398,771
Camden Property Trust		8,259		397,671
Cathay General Bancorp (c)		7,410		196,291
City National Corp.		6,013		358,074
The Colonial BancGroup, Inc. (c)		23,409		316,958
Commerce Group, Inc. (c)		6,434		231,495
Cousins Properties, Inc. (c)		5,557		122,810
Cullen/Frost Bankers, Inc.		8,702		440,843
Duke Realty Corp.		21,649		564,606
Eaton Vance Corp.		18,390		835,090
Equity One, Inc. (c)		5,488		126,389
Everest Re Group Ltd.		9,394		943,158
Federal Realty Investment Trust		8,417		691,457
Fidelity National Financial, Inc. - Class A		32,080		468,689
First American Corp.		13,624		464,851
First Community Bancorp, Inc. (c)		3,746		154,485
First Niagara Financial Group, Inc. (c)		15,688		188,883
FirstMerit Corp. (c)		11,967		239,460
The Hanover Insurance Group Inc		7,725		353,805
HCC Insurance Holdings, Inc.		17,078		489,797
Health Care REIT, Inc. (c)		12,631		564,479
Highwoods Properties, Inc. (c)		8,495		249,583
Horace Mann Educators Corp.		6,445		122,068
Hospitality Properties Trust		13,955		449,630
IndyMac Bancorp, Inc. (c)		11,963		71,180
Jefferies Group, Inc.		16,611		382,884
Jones Lang LaSalle, Inc. (c)		5,506		391,807
Liberty Property Trust (c)		13,610		392,104
The Macerich Co.		10,781		766,098
Mack-Cali Realty Corp.		10,100		343,400
Mercury General Corp.		5,299		263,943
Nationwide Health Properties, Inc. (c)		13,813		433,314
New York Community Bancorp, Inc. (c)		48,099		845,580
Old Republic International Corp.		34,290		528,409
The PMI Group, Inc. (c)		12,066		160,236
Potlatch Corp. (c)		5,827		258,952
Protective Life Corp.		10,426		427,675
Radian Group, Inc. (c)		11,929		139,331
Raymond James Financial, Inc.		14,101		460,539
Rayonier, Inc. (c)		11,610		548,456
Realty Income Corp. (c)		15,028		406,057
Regency Centers Corp.		10,350		667,471
SEI Investments Co.		18,776		604,024
Stancorp Financial Group, Inc.		7,360		370,797
SVB Financial Group (a) (c)		4,935		248,724
Synovus Financial Corp. (a)		50,400		530,722
TCF Financial Corp.		16,202		290,502
UDR, Inc. (c)		19,953		396,067
Unitrin, Inc.		7,702		369,619

	SHARES		VALUE
Financials - 15.1% (Continued)
Waddell & Reed Financial, Inc. (c)		12,409	$	447,841
Washington Federal, Inc. (c)		13,020		274,852
Webster Financial Corp. (c)		7,950		254,161
Weingarten Realty Investors (c)		11,259		353,983
Westamerica Bancorporation (c)		4,363		194,372
Wilmington Trust Corp.		10,220		359,744
WR Berkley Corp.		23,957		714,158
				25,935,729
Health Care - 12.9%
Advanced Medical Optics, Inc. (a) (c)		8,995		220,647
Affymetrix, Inc. (a) (c)		10,260		237,416
Apria Healthcare Group, Inc. (a)		6,501		140,227
Beckman Coulter, Inc.		9,324		678,787
Cephalon, Inc. (a)		9,969		715,375
Cerner Corp. (a) (c)		9,865		556,386
Charles River Laboratories International, Inc. (a)		10,095		664,251
Community Health Systems, Inc. (a) (c)		14,209		523,744
Covance, Inc. (a)		9,501		822,977
Dentsply International, Inc.		22,521		1,013,895
Edwards Lifesciences Corp. (a) (c)		8,428		387,604
Endo Pharmaceuticals Holdings, Inc. (a)		19,934		531,640
Gen-Probe, Inc. (a)		8,001		503,503
Health Management Associates, Inc. - Class A		36,069		215,693
Health Net, Inc. (a)		16,398		792,023
Henry Schein, Inc. (a)		13,308		817,111
Hillenbrand Industries, Inc.		9,214		513,496
Hologic, Inc. (a) (c)		18,630		1,278,763
Intuitive Surgical, Inc. (a)		5,687		1,845,431
Invitrogen Corp. (a)		6,924		646,771
Kindred Healthcare, Inc. (a) (c)		4,439		110,886
Kinetic Concepts, Inc. (a)		8,039		430,569
LifePoint Hospitals, Inc. (a) (c)		8,639		256,924
Lincare Holdings, Inc. (a) (c)		11,916		418,967
Medicis Pharmaceutical Corp. (c)		8,359		217,083
Millennium Pharmaceuticals, Inc. (a) (c)		48,022		719,370
Omnicare, Inc. (c)		18,064		412,040
Par Pharmaceutical Companies, Inc. (a) (c)		5,027		120,648
PDL BioPharma, Inc. (a) (c)		17,406		304,953
Perrigo Co. (c)		11,528		403,595
Pharmaceutical Product Development, Inc.		15,575		628,763
Psychiatric Solutions, Inc. (a) (c)		8,180		265,850
Resmed, Inc. (a) (c)		11,494		603,780
Sepracor, Inc. (a)		16,609		435,986
Service Corp. International		42,823		601,663
STERIS Corp.		9,426		271,846
Techne Corp. (a)		5,882		388,506
Universal Health Services, Inc.		8,012		410,214
Valeant Pharmaceuticals International (a) (c)		13,535		162,014
Varian, Inc. (a)		4,525		295,482
VCA Antech, Inc. (a)		12,534		554,379
Ventana Medical Systems, Inc. (a)		4,424		385,906
Vertex Pharmaceuticals, Inc. (a) (c)		19,672		456,981
WellCare Health Plans, Inc. (a)		6,197		262,815
				22,224,960

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 - 15.5%
AGCO Corp. (a) (c)		13,607	$	925,004
Airtran Holdings, Inc. (a) (c)		13,649		97,727
Alaska Air Group, Inc. (a) (c)		5,994		149,910
Alexander & Baldwin, Inc.		6,373		329,229
Alliant Techsystems, Inc. (a) (c)		4,865		553,442
Ametek, Inc. (c)		15,871		743,398
Avis Budget Group, Inc. (a)		15,432		200,616
BE Aerospace, Inc. (a)		13,760		727,904
The Brink’s Co. (c)		7,209		430,666
Carlisle Companies., Inc.		9,229		341,750
ChoicePoint, Inc. (a)		10,632		387,217
Con-way Inc.		6,715		278,941
Copart, Inc. (a)		10,466		445,328
Corporate Executive Board Co. (c)		5,278		317,208
Crane Co.		7,595		325,825
Deluxe Corp.		7,753		254,996
Donaldson Co, Inc.		10,588		491,071
DRS Technologies, Inc. (c)		6,131		332,729
Dun & Bradstreet Corp.		8,622		764,168
Fastenal Co. (c)		18,749		757,835
Federal Signal Corp. (c)		7,122		79,909
Flowserve Corp.		8,499		817,604
GATX Corp.		7,124		261,308
Graco, Inc. (c)		9,348		348,306
Granite Construction, Inc. (c)		5,236		189,438
Harsco Corp.		12,538		803,310
Herman Miller, Inc. (c)		9,084		294,231
HNI Corp. (c)		6,840		239,810
Hubbell, Inc. - Class B		8,625		445,050
IDEX Corp.		12,116		437,751
JB Hunt Transport Services, Inc. (c)		13,012		358,481
JetBlue Airways Corp. (a) (c)		26,794		158,085
Joy Global, Inc.		16,067		1,057,530
Kansas City Southern (a) (c)		11,440		392,735
KBR, Inc. (a)		25,182		977,062
Kelly Services, Inc. (c)		3,445		64,284
Kennametal, Inc.		11,588		438,722
Korn/Ferry International (a) (c)		6,940		130,611
Lincoln Electric Holdings, Inc.		6,408		456,121
Manpower, Inc.		12,048		685,531
Mine Safety Appliances Co. (c)		4,347		225,479
MSC Industrial Direct Co., Inc. Class A		7,068		286,042
Navigant Consulting, Inc. (a) (c)		6,792		92,847
Nordson Corp. (c)		5,018		290,843
Oshkosh Truck Corp.		11,033		521,420
Pentair, Inc. (c)		14,805		515,362
Quanta Services, Inc. (a)		25,444		667,651
Republic Services, Inc.		23,894		749,077
Rollins, Inc. (c)		6,323		121,402
Roper Industries, Inc.		13,134		821,400
SPX Corp.		7,787		800,893
Stericycle, Inc. (a)		12,917		767,270
Strayer Education, Inc.		2,156		367,770
Teleflex, Inc.		5,870		369,869
Thomas & Betts Corp. (a)		7,588		372,115
Timken Co.		14,246		467,981
Trinity Industries, Inc. (c)		12,121		336,479

	SHARES		VALUE
Industrials - 15.5% (Continued)
United Rentals, Inc. (a) (c)		11,214	$	205,889
URS Corp. (a)		11,863		644,517
Werner Enterprises, Inc. (c)		6,713		114,322
Westinghouse Air Brake Technologies Corp.		7,255		249,862
YRC Worldwide, Inc. (a) (c)		8,422		143,932
				26,623,265
Information Technology - 14.6%
3Com Corp. (a)		58,949		266,449
ACI Worldwide, Inc. (a) (c)		5,315		101,198
Activision, Inc. (a)		43,299		1,285,980
Acxiom Corp.		10,594		124,268
ADC Telecommunications, Inc. (a) (c)		17,465		271,581
Adtran, Inc. (c)		8,690		185,792
Advent Software, Inc. (a) (c)		2,660		143,906
Alliance Data Systems Corp. (a) (c)		11,705		877,758
Amphenol Corp. - Class A		26,503		1,228,944
Arrow Electronics, Inc. (a)		18,266		717,488
Atmel Corp. (a)		66,905		289,030
Avnet, Inc. (a)		22,333		780,985
Avocent Corp. (a) (c)		7,438		173,380
Broadridge Financial Solutions, Inc.		20,741		465,221
Cadence Design Systems, Inc. (a)		39,979		680,043
CommScope, Inc. (a) (c)		10,545		518,921
Cree, Inc. (a) (c)		12,699		348,842
CSG Systems International, Inc. (a) (c)		5,278		77,692
Cypress Semiconductor Corp. (a)		23,674		852,974
Diebold, Inc.		9,776		283,308
Digital River, Inc. (a) (c)		6,010		198,751
DST Systems, Inc. (a) (c)		7,674		633,489
Dycom Industries, Inc. (a) (c)		6,091		162,325
F5 Networks, Inc. (a)		12,627		360,122
Fair Isaac Corp. (c)		7,478		240,418
Fairchild Semiconductor International, Inc. (a)		18,493		266,854
Foundry Networks, Inc. (a)		22,342		391,432
Gartner, Inc. - Class A (a) (c)		10,242		179,850
Global Payments, Inc.		11,733		545,819
Harris Corp.		20,374		1,277,042
Imation Corp. (c)		4,848		101,808
Ingram Micro, Inc. (a)		21,810		393,452
Integrated Device Technology, Inc. (a)		28,285		319,903
International Rectifier Corp. (a)		10,778		366,129
Intersil Corp. - Class A		19,467		476,552
Jack Henry & Associates, Inc. (c)		11,708		284,973
Kemet Corp. (a) (c)		12,481		82,749
Lam Research Corp. (a)		20,081		868,102
Macrovision Corp. (a) (c)		7,882		144,477
McAfee, Inc. (a)		23,671		887,663
Mentor Graphics Corp. (a) (c)		13,350		143,913
Metavante Technologies, Inc. (c)		12,756		297,470
MoneyGram International, Inc. (c)		12,292		188,928
MPS Group, Inc. (a)		14,962		163,684
National Instruments Corp. (c)		8,524		284,105
NCR Corp. (a)		26,903		675,265
Neustar, Inc. (a) (c)		11,434		327,927
Palm, Inc. (c)		15,583		98,796
Parametric Technology Corp. (a)		17,240		307,734

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 - 14.6% (Continued)
Plantronics, Inc. (c)		7,228	$	187,928
Polycom, Inc. (a) (c)		13,496		374,919
RF Micro Devices, Inc. (a) (c)		43,089		246,038
Semtech Corp. (a)		9,552		148,247
Silicon Laboratories, Inc. (a)		8,195		306,739
SRA International, Inc. - Class A (a) (c)		6,333		186,507
Sybase, Inc. (a) (c)		13,333		347,858
Synopsys, Inc. (a)		21,549		558,766
Tech Data Corp. (a)		8,245		311,001
TriQuint Semiconductor, Inc. (a) (c)		21,049		139,555
Valueclick, Inc. (a)		14,591		319,543
Vishay Intertechnology, Inc. (a)		27,506		313,843
Western Digital Corp. (a)		32,726		988,652
Wind River Systems, Inc. (a) (c)		11,430		102,070
Zebra Technologies Corp. - Class A (a)		10,109		350,782
				25,225,940
Materials - 6.9%
Airgas, Inc.		12,228		637,201
Albemarle Corp.		11,828		487,905
Cabot Corp.		9,711		323,765
Carpenter Technology Corp.		7,305		549,117
CF Industries Holdings, Inc.		7,146		786,489
Chemtura Corp.		35,854		279,661
Cleveland-Cliffs, Inc. (c)		6,223		627,278
Commercial Metals Co.		17,642		519,557
Cytec Industries, Inc.		6,257		385,306
Ferro Corp. (c)		6,477		134,268
FMC Corp.		11,244		613,360
Louisiana-Pacific Corp. (c)		15,389		210,521
Lubrizol Corp.		10,198		552,324
Martin Marietta Materials, Inc. (c)		6,221		824,905
Minerals Technologies, Inc. (c)		2,862		191,611
Olin Corp. (c)		11,022		213,055
Packaging Corp. of America		13,814		389,555
Reliance Steel & Aluminum Co.		9,676		524,439
RPM International, Inc.		18,053		366,476
The Scotts Miracle-Gro Co. - Class A		6,590		246,598
Sensient Technologies Corp.		6,992		197,734
Sonoco Products Co.		14,791		483,370
Steel Dynamics, Inc.		14,354		855,068
Temple-Inland, Inc.		16,048		334,601
Terra Industries, Inc. (a) (c)		13,800		659,088
Valspar Corp.		14,959		337,176
Vulcan Materials Co. (c)		739		58,361
Worthington Industries (c)		9,780		174,866
				11,963,655
Telecommunication Services - 0.7%
Cincinnati Bell, Inc. (a) (c)		36,958		175,551
Telephone & Data Systems, Inc. (c)		15,792		988,579
				1,164,130
Utilities - 7.7%
AGL Resources, Inc.		11,385		428,531
Alliant Energy Corp.		16,416		667,967
Aqua America, Inc. (c)		19,824		420,269
Aquila, Inc. (a)		55,874		208,410

	SHARES		VALUE
Utilities - 7.7% (Continued)
Black Hills Corp. (c)		5,612	$	247,489
DPL, Inc. (c)		16,878		500,433
Energen Corp.		10,675		685,655
Energy East Corp. (c)		23,534		640,360
Equitable Resources, Inc.		18,103		964,528
Great Plains Energy, Inc. (c)		12,821		375,912
Hawaiian Electric Industries, Inc. (c)		12,348		281,164
Idacorp, Inc. (c)		6,691		235,657
MDU Resources Group, Inc.		27,109		748,480
National Fuel Gas Co. (c)		12,412		579,392
Northeast Utilities		23,039		721,351
NSTAR		15,893		575,644
OGE Energy Corp. (c)		13,643		495,105
Oneok, Inc.		15,419		690,309
PNM Resources, Inc.		11,411		244,766
Puget Energy, Inc.		17,410		477,556
SCANA Corp.		17,340		730,881
Sierra Pacific Resources		34,757		590,174
Vectren Corp. (c)		11,381		330,163
Westar Energy, Inc.		13,731		356,182
WGL Holdings, Inc. (c)		7,354		240,917
Wisconsin Energy Corp.		17,389		847,018
				13,284,313
TOTAL COMMON STOCKS
(Cost $145,849,315)				168,587,866
UNIT INVESTMENT TRUSTS - 0.3%
Midcap SPDR Trust Series 1		3,795		588,605
TOTAL UNIT INVESTMENT TRUSTS
(Cost $559,573)				588,605
SHORT TERM INVESTMENTS (e) - 15.3%
Money Market Funds - 14.4%
Northern Institutional Diversified Assets Portfolio		24,805,988		24,805,988
	PRINCIPAL
	AMOUNT		VALUE
U.S. Treasury Bills - 0.9%
2.995%, 03/13/2008	$	1,500,000	$	1,490,902
TOTAL SHORT TERM INVESTMENTS
(Cost $26,297,070)				26,296,890
Total Investments
(Cost $172,705,958) (b) - 113.5%				195,473,361
Northern Institutional Liquid Assets Portfolio (d) - 26.1%				44,948,526
Liabilities in Excess of Other Assets - (39.6)%				(68,200,142	)
TOTAL NET ASSETS - 100.0%			$	172,221,745

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

ADR American Depository Receipt

^(a) Non-income producing security.

(b) For federal income tax purposes, cost is $173,511,589 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $38,354,356, and ($16,392,584), respectively, with a net appreciation / (depreciation) of $21,961,772.

(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 values of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted are $43,598,743, $44,948,526, and $193,271, respectively.

^(e) Securities and other assets with an aggregate value of $3,891,600 have been segregated with the custodian or designated to cover margin requirements for the following open futures contracts as of December 31, 2007:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
S&P MidCap 400 Index Mini (03/08)	10	$8,900
S&P MidCap 400 Index (03/08)	7	$15,944

The accompanying notes are an 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, 2007
ASSETS
Investments in securities, at value	$	195,473,361
Collateral for securities loaned,
at fair value		44,948,526
Receivables:
Securities sold		1,194,763
Shares sold		31,211
Interest and dividends		108,964
Prepaid expenses and other		4,140
		241,760,965
LIABILITIES
Payables:
Payable upon return of securities loaned		44,948,526
Investment securities purchased		23,264,072
Shares redeemed		1,177,480
Variation margin		15,292
Bank overdraft		284
Advisory fees		38,970
Professional fees		22,863
Royalty fees		20,667
Fund accounting fees		18,258
Administration fees		12,990
Custodian fees		5,437
Directors’ fees		300
Other accrued expenses		14,081
		69,539,220
NET ASSETS*
Paid-in capital		137,057,216
Accumulated undistributed net investment
income / (loss)		1,390,505
Accumulated net realized gain / (loss)
on investments and futures contracts		10,981,727
Net unrealized appreciation / (depreciation)
on investments and futures contracts		22,792,297
	$	172,221,745
Investments at cost	$	172,705,958
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	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$172,220,787	2,436,317	$	70.69
Class F	$958	14	$	70.66	**

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2007
	Percentage of ordinary distributions designated as
	qualified dividend income		99.30%
	Dividends received deduction for corporate shareholders		99.30%
	Undistributed ordinary income	$	1,842,763
	Undistributed long-term gains	$	11,360,050
	Unrealized appreciation	$	21,986,665
**	NAV does not recalculate due to fractional shares outstanding.

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Interest	$	78,504
Dividends		2,405,384
Other income		78,737
		2,562,625
EXPENSES
Advisory fees		470,036
Administration fees		156,679
Fund accounting fees		44,816
Professional fees		35,710
Custodian fees		22,926
Royalty fee		20,971
Directors’ fees		19,832
Transfer agent fees		17,210
Shareholder reporting fees		15,810
Other expenses		14,483
		818,473
NET INVESTMENT INCOME / (LOSS)		1,744,152
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		11,945,283
Net realized gain / (loss) on futures contracts		(306,568)
		11,638,715
Net change in unrealized appreciation /
(depreciation) on investments and
futures contracts		(2,909,832	)
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		8,728,883
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	10,473,035

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory	Administration	Class I Expense	Class F Expense
Fee	Fee	Limit	Limit
0.30%	0.10%	0.60%	0.80%

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
For the Year Ended December 31,
	2007			2006
OPERATIONS
Net investment income / (loss)	$	1,744,152		$	1,588,558
Net realized gain / (loss) on investments and futures		11,638,715			6,115,602
Net change in unrealized appreciation / (depreciation) on investments
and futures contracts		(2,909,832	)		4,849,289
		10,473,035			12,553,449
DISTRIBUTIONS TO SHAREHOLDERS*
Class I
Net investment income		(1,394,203	)		(1,159,032	)
Net realized gain on investments		(6,306,003	)		(5,058,592	)
Class F(1)
Net investment income		—			—
Net realized gain on investments		—			—
		(7,700,206	)		(6,217,624	)
FUND SHARE TRANSACTIONS
Class I
Proceeds from shares sold		45,386,539			20,986,992
Reinvestment of distributions		7,700,206			6,217,624
Payments for shares redeemed		(27,774,480	)		(16,776,702	)
		25,312,265			10,427,914
Class F(1)
Proceeds from shares sold		1,000			—
Reinvestment of distributions		—			—
Payments for shares redeemed		—			—
		1,000			—
NET INCREASE / (DECREASE) IN NET ASSETS		28,086,094			16,763,739
NET ASSETS
Beginning of period		144,135,651			127,371,912
End of period	$	172,221,745		$	144,135,651
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	1,390,505		$	1,172,500

FUND SHARE TRANSACTIONS Class I
Sold		634,589			313,433
Reinvestment of distributions		108,791			92,870
Redeemed		(388,957	)		(251,818	)
Net increase / (decrease) from fund share transactions		354,423			154,485
FUND SHARE TRANSACTIONS Class F(1)
Sold		14			—
Reinvestment of distributions		—			—
Redeemed		—			—
Net increase / (decrease) from fund share transactions		14			—
TOTAL COST OF PURCHASES OF:
Common Stocks	$	55,478,608		$	24,438,495
	$	55,478,608		$	24,438,495
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	34,538,691		$	19,118,277
	$	34,538,691		$	19,118,277
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income**	$	1,689,413		$	1,810,900
Long-term capital gains		6,010,793			4,406,724
	$	7,700,206		$	6,217,624
(1) Class F Shares have been offered since 10/1/07.
** The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions
under Internal Revenue Section 871 (k)(2)(C) is 18.25%

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	10-Year
7.02%	9.16%	3.68%

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 Kevin P. Aug
Inception Date:	May 3, 1999
Total Net Assets:	$25.99 Million
Number of Equity Holdings:	500
Median Cap Size:	$13,043 (in millions)
Average Price-to-book Ratio:	2.77 x
Dividend Yield:	1.97%
Number of Fixed Income Holdings:	39
Effective Duration	4.23 years
Average Maturity	11.74 years
Average Credit Quality	Aaa/AAA
Current Yield	5.09%

Top 10 Equity Holdings  Sector Allocations

	(% of net assets)
Exxon Mobil Corp. General Electric Co. Microsoft Corp. AT&T, Inc. Procter & Gamble Co. Chevron Corp. Johnson & Johnson Bank of America Corp. Apple, Inc. Cisco Systems, Inc.	2.34% 1.70% 1.30% 1.14% 1.03% 0.89% 0.88% 0.83% 0.78% 0.75%

 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 period ended December 31, 2007, the Summit Balanced Index Portfolio’s total return was 7.02% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 6.22% 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 5.49% and 6.97%, respectively). The difference of 0.80% 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. The primary reasons for the positive variance to the Balanced Index were: a slight overweighting to equities during the first half of 2007 when equities out performed fixed income securities; the recognition of certain litigation settlements from past corporate bond holdings; and holding only a sample of the Lehman Index versus a complete replication of the Index.

38

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

FINANCIAL HIGHLIGHTS
Computed on the basis of capital stock outstanding throughout the period.
	Year Ended December 31,
		2007			2006			2005			2004			2003
Net asset value, beginning of period		$	49.58		$	45.74		$	45.55		$	43.05		$	37.50
INVESTMENT ACTIVITIES:
Net investment income / (loss)			1.33			1.16			1.07			0.95	(2)		0.95
Net realized and unrealized gains / (losses)			2.12			3.80			0.28			2.27			5.57
Total from Investment Activities			3.45			4.96			1.35			3.22			6.52
DISTRIBUTIONS:
Net investment income			(1.41	)		(1.12	)		(1.16	)		(0.72	)		(0.97	)
Total Distributions			(1.41	)		(1.12	)		(1.16	)		(0.72	)		(0.97	)
Net asset value, end of period		$	51.62		$	49.58		$	45.74		$	45.55		$	43.05
Total return			7.02	%		11.02	%		3.04	%		7.59	%		17.70	%
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	%		0.69	%		0.70	%		0.71	%		1.01	%
Ratio of net investment income / (loss) to average net assets			2.47	%		2.36	%		2.25	%		2.23	%		2.31	%
Portfolio turnover rate			15.11	%		21.19	%		3.85	%		21.20	%		25.45	%
Net assets, end of period (000’s)		$	25,993		$	28,784		$	29,316		$	33,356		$	11,667

⁽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, 2007
	SHARES		VALUE
COMMON STOCKS - 58.8%
Consumer Discretionary - 5.1%
Abercrombie & Fitch Co. - Class A		120	$	9,596
Amazon.Com, Inc. (a)		361		33,443
Apollo Group, Inc. (a)		185		12,978
AutoNation, Inc. (a)		203		3,179
Autozone, Inc. (a) (d)		56		6,715
Bed Bath & Beyond, Inc. (a)		318		9,346
Best Buy Co., Inc.		470		24,746
Big Lots, Inc. (a)		137		2,191
Black & Decker Corp.		82		5,711
Brunswick Corp.		105		1,790
Carnival Corp.		514		22,868
CBS Corporation		851		23,190
Centex Corp. (d)		157		3,966
Circuit City Stores, Inc. (d)		161		676
Clear Channel Communications, Inc.		576		19,884
Coach, Inc. (a)		431		13,180
Comcast Corp. - Class A (a)		3,607		65,864
D.R. Horton, Inc.		341		4,491
Darden Restaurants, Inc.		165		4,572
Dillard’s, Inc. - Class A (d)		71		1,333
The DIRECTV Group, Inc. (a)		895		20,692
E.W. Scripps Co.		130		5,851
Eastman Kodak Co. (d)		359		7,851
Expedia, Inc. (a)		240		7,589
Family Dollar Stores, Inc.		175		3,365
Ford Motor Co. (a) (d)		2,410		16,219
Fortune Brands, Inc.		190		13,748
GameStop Corp. (a) (d)		180		11,180
Gannett Co., Inc.		273		10,647
The Gap, Inc.		615		13,087
General Motors Corp. (d)		656		16,328
Genuine Parts Co.		198		9,167
The Goodyear Tire & Rubber Co. (a)		263		7,422
H&R Block, Inc.		375		6,964
Harley-Davidson, Inc.		299		13,966
Harman International Industries, Inc.		77		5,676
Harrah’s Entertainment, Inc.		217		19,259
Hasbro, Inc.		217		5,551
Home Depot, Inc.		1,992		53,665
IAC/InterActiveCorp (a)		254		6,838
International Game Technology		386		16,957
Interpublic Group of Companies, Inc. (a) (d)		544		4,412
J.C. Penney Co., Inc.		261		11,481
Johnson Controls, Inc.		687		24,759
Jones Apparel Group, Inc. (d)		136		2,175
KB Home		90		1,944
Kohl’s Corp. (a)		375		17,175
Leggett & Platt, Inc.		221		3,854
Lennar Corp. (d)		162		2,898
Limited Brands, Inc.		398		7,534
Liz Claiborne, Inc. (d)		129		2,625
Lowe’s Companies, Inc.		1,746		39,495
Macys, Inc.		534		13,815
Marriott International, Inc. - Class A		381		13,023
Mattel, Inc.		457		8,701
McDonald’s Corp.		1,385		81,590

	SHARES		VALUE
Consumer Discretionary - 5.1% (Continued)
The McGraw-Hill Cos., Inc.		399	$	17,480
Meredith Corp.		70		3,849
The New York Times Co. - Class A (d)		191		3,348
Newell Rubbermaid, Inc.		346		8,954
News Corp. - Class A		2,702		55,364
Nike, Inc. - Class B		471		30,257
Nordstrom, Inc. (d)		261		9,587
Office Depot, Inc. (a)		321		4,465
OfficeMax, Inc.		118		2,438
Omnicom Group, Inc.		418		19,868
Polo Ralph Lauren Corp. (d)		85		5,252
Pulte Homes, Inc. (d)		265		2,793
RadioShack Corp.		170		2,866
Sears Holdings Corp. (a) (d)		89		9,082
The Sherwin-Williams Co.		140		8,126
Snap-On, Inc.		97		4,679
The Stanley Works		121		5,866
Staples, Inc.		830		19,148
Starbucks Corp. (a)		860		17,604
Starwood Hotels & Resorts Worldwide, Inc.		268		11,800
Target Corp.		988		49,400
Tiffany & Co. (d)		183		8,424
Time Warner, Inc.		4,391		72,495
TJX Companies, Inc.		528		15,169
VF Corp.		104		7,141
Viacom, Inc. - Class B (a)		800		35,136
The Walt Disney Co.		2,299		74,212
The Washington Post Co. - Class B		6		4,749
Wendy’s International, Inc.		109		2,817
Whirlpool Corp.		92		7,510
Wyndham Worldwide Corp.		236		5,560
Yum! Brands, Inc.		609		23,306
				1,325,967
Consumer Staples - 6.0%
Altria Group, Inc.		2,484		187,741
Anheuser-Busch Companies, Inc.		882		46,164
Archer-Daniels-Midland Co.		758		35,194
Avon Products, Inc.		510		20,160
Brown-Forman Corp. - Class B		92		6,818
Campbell Soup Co.		276		9,861
Clorox Co.		163		10,623
The Coca-Cola Co.		2,331		143,053
Coca-Cola Enterprises, Inc.		324		8,434
Colgate-Palmolive Co.		594		46,308
ConAgra Foods, Inc.		579		13,774
Constellation Brands, Inc. - Class A (a)		225		5,319
Costco Wholesale Corp.		519		36,205
CVS Caremark Corp.		1,791		71,192
Dean Foods Co.		151		3,905
The Estee Lauder Companies, Inc.		137		5,975
General Mills, Inc.		402		22,914
The Hershey Co.		216		8,510
HJ Heinz Co.		377		17,598
Kellogg Co.		291		15,257
Kimberly-Clark Corp.		495		34,323
Kraft Foods, Inc.		1,862		60,757

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 - 6.0% (Continued)
The Kroger Co.		822	$	21,956
McCormick & Co., Inc.		163		6,179
Molson Coors Brewing Co. - Class B		160		8,259
Pepsi Bottling Group, Inc.		180		7,103
PepsiCo, Inc.		1,890		143,451
Procter & Gamble Co.		3,654		268,277
Reynolds American, Inc. (d)		227		14,973
Safeway, Inc.		513		17,550
Sara Lee Corp.		853		13,699
Supervalu, Inc.		259		9,718
Sysco Corp.		717		22,378
Tyson Foods, Inc. - Class A		315		4,829
UST, Inc. (d)		186		10,193
Walgreen Co.		1,162		44,249
Wal-Mart Stores, Inc.		2,813		133,702
Whole Foods Market, Inc. (d)		164		6,691
WM Wrigley Jr. Co.		272		15,926
				1,559,218
Energy - 7.5%
Anadarko Petroleum Corp.		539		35,407
Apache Corp.		385		41,403
Baker Hughes, Inc.		372		30,169
BJ Services Co.		340		8,248
Chesapeake Energy Corp.		476		18,659
Chevron Corp.		2,492		232,578
ConocoPhillips		1,895		167,329
Consol Energy, Inc.		228		16,307
Devon Energy Corp.		516		45,878
El Paso Corp. (d)		813		14,016
ENSCO International, Inc.		173		10,314
EOG Resources, Inc.		305		27,221
Exxon Mobil Corp.		6,483		607,392
Halliburton Co.		1,061		40,223
Hess Corp.		319		32,174
Marathon Oil Corp.		796		48,445
Murphy Oil Corp.		219		18,580
Nabors Industries Ltd. (a)		348		9,532
National Oilwell Varco, Inc. (a)		412		30,266
Noble Energy, Inc.		200		15,904
Noble Corp.		336		18,987
Occidental Petroleum Corp.		968		74,526
Peabody Energy Corp.		308		18,985
Range Resources Corp. (d)		180		9,245
Rowan Companies, Inc. (d)		129		5,090
Schlumberger Ltd.		1,406		138,308
Smith International, Inc.		233		17,207
Spectra Energy Corp.		733		18,926
Sunoco, Inc.		142		10,287
Tesoro Corp.		160		7,632
Transocean, Inc. (a)		371		53,109
Valero Energy Corp.		637		44,609
Weatherford International Ltd. (a)		392		26,891
Williams Companies, Inc.		695		24,867
XTO Energy, Inc.		556		28,569
				1,947,283

	SHARES		VALUE
Financials - 10.3%
ACE Ltd.		378	$	23,353
Aflac, Inc.		568		35,574
The Allstate Corp.		705		36,822
AMBAC Financial Group, Inc. (d)		128		3,299
American Capital Strategies Ltd. (d)		230		7,581
American Express Co.		1,379		71,736
American International Group, Inc.		3,008		175,366
Ameriprise Financial, Inc.		298		16,423
AON Corp.		341		16,262
Apartment Investment & Management Co. (d)		113		3,924
Assurant, Inc.		130		8,697
AvalonBay Communities, Inc.		100		9,414
Bank of America Corp.		5,235		215,996
The Bank Of New York Mellon Corp.		1,310		63,876
BB&T Corp.		630		19,322
The Bear Stearns Companies, Inc. (d)		139		12,267
Boston Properties, Inc.		140		12,853
Capital One Financial Corp.		480		22,685
CB Richard Ellis Group, Inc. (a) (d)		250		5,387
The Charles Schwab Corp.		1,095		27,977
Chubb Corp.		466		25,434
Cincinnati Financial Corp.		200		7,908
CIT Group, Inc.		242		5,815
Citigroup, Inc.		5,869		172,783
CME Group, Inc.		63		43,218
Comerica, Inc.		197		8,575
Commerce Bancorp, Inc.		222		8,467
Countrywide Financial Corp. (d)		689		6,160
Developers Diversified Realty Corp.		170		6,509
Discover Financial Services		613		9,244
E*Trade Financial Corp. (a) (d)		496		1,761
Equity Residential		367		13,384
Fannie Mae		1,130		45,177
Federated Investors, Inc.		103		4,239
Fifth Third Bancorp		639		16,058
First Horizon National Corp. (d)		157		2,850
Franklin Resources, Inc.		192		21,971
Freddie Mac		767		26,132
General Growth Properties, Inc.		285		11,736
Genworth Financial, Inc.		486		12,369
Goldman Sachs Group, Inc.		474		101,934
Hartford Financial Services Group, Inc.		368		32,086
Host Hotels & Resorts, Inc.		606		10,326
Hudson City Bancorp, Inc.		563		8,456
Huntington Bancshares, Inc. (d)		294		4,339
Intercontinentalexchange, Inc. (a)		80		15,400
Janus Capital Group, Inc.		216		7,096
JPMorgan Chase & Co.		3,962		172,941
KeyCorp		456		10,693
Kimco Realty Corp.		264		9,610
Legg Mason, Inc.		153		11,192
Lehman Brothers Holdings, Inc.		618		40,442
Leucadia National Corp. (d)		195		9,184
Lincoln National Corp.		315		18,339
Loews Corp.		518		26,076
M&T Bank Corp.		88		7,178
Marsh & McLennan Companies, Inc.		645		17,073

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 - 10.3% (Continued)
Marshall & Ilsley Corp.		300	$	7,944
MBIA, Inc. (d)		168		3,130
Merrill Lynch & Co., Inc.		1,011		54,270
MetLife, Inc.		861		53,055
MGIC Investment Corp. (d)		104		2,333
Moody’s Corp. (d)		268		9,568
Morgan Stanley		1,223		64,954
National City Corp.		749		12,329
Northern Trust Corp.		219		16,771
NYSE Euronext		300		26,331
Plum Creek Timber Co., Inc.		221		10,175
PNC Financial Services Group, Inc.		434		28,492
Principal Financial Group, Inc.		311		21,409
The Progressive Corp.		855		16,382
Prologis		298		18,887
Prudential Financial, Inc.		543		50,521
Public Storage, Inc.		138		10,131
Regions Financial Corp. (d)		818		19,346
Safeco Corp.		154		8,575
Simon Property Group, Inc.		273		23,713
SLM Corp.		608		12,245
Sovereign Bancorp, Inc. (d)		420		4,788
State Street Corp.		438		35,566
SunTrust Banks, Inc.		414		25,871
T. Rowe Price Group, Inc.		309		18,812
Torchmark Corp.		123		7,445
The Travelers Companies, Inc.		771		41,480
Unum Group		399		9,492
US Bancorp		2,019		64,083
Vornado Realty Trust		152		13,368
Wachovia Corp.		2,220		84,427
Washington Mutual, Inc. (d)		1,031		14,032
Wells Fargo & Co.		4,108		124,021
XL Capital Ltd. - Class A		235		11,823
Zions Bancorporation		151		7,050
				2,673,788
Health Care - 7.1%
Abbott Laboratories		1,787		100,340
Aetna, Inc.		599		34,580
Allergan, Inc.		357		22,934
AmerisourceBergen Corp.		222		9,961
Amgen, Inc. (a)		1,282		59,536
Applera Corp. - Applied Biosystems Group		242		8,209
Barr Pharmaceuticals, Inc. (a)		160		8,496
Baxter International, Inc.		756		43,886
Becton, Dickinson & Co.		285		23,820
Biogen Idec, Inc. (a)		364		20,719
Boston Scientific Corp. (a)		1,574		18,306
Bristol-Myers Squibb Co.		2,283		60,545
C.R. Bard, Inc.		120		11,376
Cardinal Health, Inc.		447		25,814
Celgene Corp. (a)		475		21,950
CIGNA Corp.		334		17,946
Coventry Health Care, Inc. (a)		210		12,442
Covidien Ltd.		575		25,467
Eli Lilly & Co.		1,145		61,132

	SHARES		VALUE
Health Care - 7.1% (Continued)
Express Scripts, Inc. (a)		317	$	23,141
Forest Laboratories, Inc. (a)		369		13,450
Genzyme Corp. (a)		329		24,491
Gilead Sciences, Inc. (a)		1,084		49,875
Hospira, Inc. (a)		208		8,869
Humana, Inc. (a)		218		16,418
IMS Health, Inc.		228		5,253
Johnson & Johnson		3,415		227,780
King Pharmaceuticals, Inc. (a)		304		3,113
Laboratory Corp. of America Holdings (a)		166		12,538
McKesson Corp.		343		22,470
Medco Health Solutions, Inc. (a)		325		32,955
Medtronic, Inc.		1,337		67,211
Merck & Co., Inc.		2,568		149,226
Millipore Corp. (a)		86		6,293
Mylan, Inc. (d)		289		4,063
Patterson Companies, Inc. (a) (d)		162		5,500
PerkinElmer, Inc.		167		4,345
Pfizer, Inc.		8,141		185,045
Quest Diagnostics, Inc.		214		11,321
Schering-Plough Corp.		1,910		50,882
St. Jude Medical, Inc. (a)		393		15,971
Stryker Corp.		280		20,922
Tenet Healthcare Corp. (a) (d)		549		2,789
Thermo Fisher Scientific, Inc. (a)		524		30,224
UnitedHealth Group, Inc.		1,555		90,501
Varian Medical Systems, Inc. (a)		175		9,128
Waters Corp. (a)		136		10,754
Watson Pharmaceuticals, Inc. (a)		119		3,230
Wellpoint, Inc. (a)		712		62,464
Wyeth		1,561		68,981
Zimmer Holdings, Inc. (a)		296		19,580
				1,846,242
Industrials - 6.8%
3M Co.		836		70,492
Allied Waste Industries, Inc. (a) (d)		326		3,593
Avery Dennison Corp. (d)		125		6,642
Boeing Co.		914		79,938
Burlington Northern Santa Fe Corp.		354		29,463
C.H. Robinson Worldwide, Inc.		199		10,770
Caterpillar, Inc.		743		53,912
Cintas Corp.		181		6,085
Cooper Industries Ltd. - Class A		228		12,057
CSX Corp.		507		22,298
Cummins, Inc.		121		15,412
Danaher Corp.		297		26,059
Deere & Co.		524		48,795
Dover Corp.		238		10,969
Eaton Corp.		183		17,742
Emerson Electric Co.		923		52,297
Equifax, Inc.		168		6,108
Expeditors International Washington, Inc.		250		11,170
FedEx Corp.		383		34,152
Fluor Corp.		103		15,009
General Dynamics Corp.		470		41,825
General Electric Co.		11,898		441,059
Goodrich Corp.		146		10,309

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 - 6.8% (Continued)
Honeywell International, Inc.		904	$	55,659
Illinois Tool Works, Inc.		479		25,646
Ingersoll-Rand Company Ltd. - Class A		350		16,265
ITT Corp.		244		16,114
Jacobs Engineering Group, Inc. (a)		140		13,385
L-3 Communications Holdings, Inc.		145		15,361
Lockheed Martin Corp.		412		43,367
Manitowoc Co.		150		7,324
Masco Corp.		439		9,487
Monster Worldwide, Inc. (a)		152		4,925
Norfolk Southern Corp.		457		23,051
Northrop Grumman Corp.		401		31,535
Paccar, Inc.		433		23,590
Pall Corp.		154		6,209
Parker Hannifin Corp.		217		16,342
Pitney Bowes, Inc.		275		10,461
Precision Castparts Corp.		170		23,579
Raytheon Co.		516		31,321
Robert Half International, Inc.		193		5,219
Rockwell Automation, Inc.		207		14,275
Rockwell Collins, Inc.		210		15,114
RR Donnelley & Sons Co.		256		9,661
Ryder System, Inc.		71		3,338
Southwest Airlines Co.		906		11,053
Terex Corp. (a)		140		9,180
Textron, Inc.		295		21,034
Trane, Inc.		218		10,183
Tyco International Ltd.		576		22,838
Union Pacific Corp.		314		39,445
United Parcel Service, Inc. - Class B		1,229		86,915
United Technologies Corp.		1,154		88,327
W.W. Grainger, Inc.		83		7,264
Waste Management, Inc.		601		19,635
				1,763,258
Information Technology - 9.8%
Adobe Systems, Inc. (a)		683		29,185
Advanced Micro Devices, Inc. (a) (d)		642		4,815
Affiliated Computer Services, Inc. - Class A (a)		116		5,232
Agilent Technologies, Inc. (a)		460		16,900
Akamai Technologies, Inc. (a) (d)		200		6,920
Altera Corp.		412		7,960
Analog Devices, Inc.		380		12,046
Apple, Inc. (a)		1,026		203,230
Applied Materials, Inc.		1,604		28,487
Autodesk, Inc. (a)		289		14,381
Automatic Data Processing, Inc.		642		28,588
BMC Software, Inc. (a)		271		9,658
Broadcom Corp. - Class A (a)		540		14,116
CA, Inc.		478		11,926
Ciena Corp. (a) (d)		123		4,196
Cisco Systems, Inc. (a)		7,186		194,525
Citrix Systems, Inc. (a)		210		7,982
Cognizant Technology Solutions Corp. (a)		400		13,576
Computer Sciences Corp. (a)		216		10,686
Compuware Corp. (a)		350		3,108
Convergys Corp. (a)		184		3,029
Corning, Inc.		1,826		43,806

	SHARES		VALUE
Information Technology - 9.8% (Continued)
Dell, Inc. (a)		2,631	$	64,486
eBay, Inc. (a)		1,312		43,545
Electronic Arts, Inc. (a)		387		22,605
Electronic Data Systems Corp.		591		12,251
EMC Corp. (a)		2,436		45,139
Fidelity National Information Services, Inc.		220		9,150
Fiserv, Inc. (a)		196		10,876
Google, Inc. (a)		272		188,083
Hewlett-Packard Co.		3,037		153,308
Intel Corp.		6,890		183,687
International Business Machines Corp.		1,584		171,230
Intuit, Inc. (a)		398		12,581
Jabil Circuit, Inc.		208		3,176
JDS Uniphase Corp. (a) (d)		278		3,697
Juniper Networks, Inc. (a)		658		21,846
KLA-Tencor Corp.		223		10,740
Lexmark International, Inc. - Class A (a)		133		4,636
Linear Technology Corp. (d)		295		9,390
LSI Corp. (a) (d)		894		4,747
MEMC Electronic Materials, Inc. (a)		290		25,662
Microchip Technology, Inc. (d)		260		8,169
Micron Technology, Inc. (a)		878		6,365
Microsoft Corp.		9,512		338,627
Molex, Inc.		187		5,105
Motorola, Inc.		2,687		43,099
National Semiconductor Corp.		324		7,335
Network Appliance, Inc. (a)		431		10,758
Novell, Inc. (a)		404		2,775
Novellus Systems, Inc. (a)		163		4,494
Nvidia Corp. (a)		666		22,657
Oracle Corp. (a)		4,594		103,733
Paychex, Inc.		395		14,307
QLogic Corp. (a)		185		2,627
Qualcomm, Inc.		1,935		76,142
SanDisk Corp. (a) (d)		280		9,288
Sun Microsystems, Inc. (a)		1,037		18,801
Symantec Corp. (a)		1,046		16,882
Tellabs, Inc. (a)		509		3,329
Teradata Corp. (a)		223		6,112
Teradyne, Inc. (a)		237		2,451
Texas Instruments, Inc.		1,663		55,544
Total Sys Svcs, Inc. (a)		230		6,440
Tyco Electronics Ltd.		576		21,387
Unisys Corp. (a) (d)		404		1,911
VeriSign, Inc. (a)		285		10,719
The Western Union Co.		897		21,779
Xerox Corp. (a)		1,088		17,615
Xilinx, Inc.		346		7,567
Yahoo!, Inc. (a)		1,589		36,960
				2,558,165
Materials - 2.0%
Air Products & Chemicals, Inc.		270		26,630
Alcoa, Inc.		1,009		36,879
Allegheny Technologies, Inc.		141		12,182
Ashland, Inc.		70		3,320
Ball Corp.		129		5,805
Bemis Co.		122		3,340

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 - 2.0% (Continued)
The Dow Chemical Co.		1,104	$	43,520
Eastman Chemical Co.		98		5,987
Ecolab, Inc.		222		11,369
EI Du Pont de Nemours & Co.		1,072		47,264
Freeport-McMoRan Copper & Gold, Inc. - Class B		445		45,586
Hercules, Inc.		136		2,632
International Flavors & Fragrances, Inc.		91		4,380
International Paper Co.		506		16,384
MeadWestvaco Corp.		214		6,698
Monsanto Co.		631		70,476
Newmont Mining Corp.		524		25,587
Nucor Corp.		350		20,727
Pactiv Corp. (a)		183		4,873
PPG Industries, Inc.		191		13,414
Praxair, Inc.		370		32,823
Rohm & Haas Co.		190		10,083
Sealed Air Corp.		202		4,674
Sigma-Aldrich Corp.		165		9,009
Titanium Metals Corp. (a) (d)		100		2,645
United States Steel Corp.		138		16,686
Vulcan Materials Co. (d)		119		9,412
Weyerhaeuser Co.		251		18,509
				510,894
Telecommunication Services - 2.1%
American Tower Corp. - Class A (a)		480		20,448
AT&T, Inc.		7,152		297,237
CenturyTel, Inc.		154		6,385
Citizens Communications Co. (d)		424		5,398
Embarq Corp.		176		8,717
Qwest Communications International, Inc. (a)		1,802		12,632
Sprint Nextel Corp.		3,359		44,104
Verizon Communications, Inc.		3,370		147,235
Windstream Corp.		554		7,213
				549,369
Utilities - 2.1%
The AES Corp. (a)		776		16,599
Allegheny Energy, Inc. (a)		193		12,277
Ameren Corp.		240		13,010
American Electric Power Co., Inc.		463		21,557
Centerpoint Energy, Inc.		399		6,835
CMS Energy Corp. (d)		261		4,536
Consolidated Edison, Inc.		314		15,339
Constellation Energy Group, Inc.		210		21,531
Dominion Resources, Inc.		680		32,266
DTE Energy Co.		205		9,012
Duke Energy Corporation		1,461		29,468
Dynegy, Inc. (a)		500		3,570
Edison International		378		20,174
Entergy Corp.		248		29,641
Exelon Corp.		781		63,761
FirstEnergy Corp.		354		25,608
FPL Group, Inc.		472		31,992
Integrys Energy Group, Inc.		102		5,272
Nicor, Inc. (d)		74		3,134
NiSource, Inc.		342		6,460
Pepco Holdings, Inc.		220		6,453

	SHARES		VALUE
Utilities - 2.1% (Continued)
PG&E Corp.		408	$	17,581
Pinnacle West Capital Corp.		117		4,962
PPL Corp.		447		23,284
Progress Energy, Inc.		321		15,546
Public Service Enterprise Group, Inc.		294		28,883
Questar Corp.		201		10,874
Sempra Energy		328		20,297
Southern Co.		873		33,829
TECO Energy, Inc.		244		4,199
Xcel Energy, Inc.		475		10,721
				548,671
TOTAL COMMON STOCKS
(Cost $11,033,912)				15,282,855
	PRINCIPAL
	AMOUNT		VALUE
CORPORATE BONDS - 5.4%
Consumer Staples - 0.4%
Campbell Soup Co.
5.875%, 10/01/2008 (d)	$	100,000	$	100,978
Energy - 2.3%
Apache Corp.
5.625%, 01/15/2017 (d)		100,000		101,875
Burlington Resources Finance Co.
6.500%, 12/01/2011 (d)		150,000		159,105
Colonial Pipeline Co.
7.750%, 11/01/2010 (b)		125,000		135,971
Conoco Funding Co.
6.350%, 10/15/2011		50,000		53,107
Public Service of North Carolina, Inc.
6.625%, 02/15/2011		150,000		156,723
				606,781
Financials - 0.7%
Union Planters Corp.
4.375%, 12/01/2010		190,000		186,698
Industrials - 2.0%
Honeywell International, Inc.
7.500%, 03/01/2010 (d)		125,000		133,035
Masco Corp.
5.875%, 07/15/2012		125,000		128,131
United Technologies Corp.
4.375%, 05/01/2010		250,000		250,709
				511,875
TOTAL CORPORATE BONDS
(Cost $1,408,960)				1,406,332

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 - 12.4%
Fannie Mae Pool
Pool #500823, 7.000%, 07/01/2029	$	256,564	$	270,595
Pool #653650, 6.500%, 08/01/2032		74,854		77,026
Pool #722267, 5.500%, 07/01/2033		231,040		231,211
Pool #732114, 6.000%, 08/01/2033		138,844		141,272
Pool #357457, 5.500%, 11/01/2033		436,986		437,310
Pool #903724, 7.500%, 11/01/2036		242,604		252,065
Freddie Mac (Gold) Pool
Pool #E9-6460, 5.000%, 05/01/2018		515,136		516,405
Pool #E9-9160, 4.500%, 09/01/2018		106,841		105,060
Pool #G0-8146, 6.000%, 08/01/2036		663,282		673,255
Ginnie Mae Pool
Pool #003583M, 5.500%, 07/20/2034		513,715		514,892
TOTAL MORTGAGE BACKED SECURITIES
(Cost $3,251,504)				3,219,091
U.S. GOVERNMENT AGENCY ISSUES - 4.4%
Federal National Mortgage Association
5.050%, 02/07/2011		1,100,000		1,145,178
TOTAL U.S. GOVERNMENT AGENCY ISSUES
(Cost $1,105,033)				1,145,178
U.S. TREASURY OBLIGATIONS - 16.4%
U.S. Treasury Bonds - 4.0%
6.250%, 08/15/2023 (d)		250,000		299,317
5.250%, 11/15/2028 (d)		450,000		495,105
6.125%, 08/15/2029 (d)		195,000		238,555
				1,032,977
U.S. Treasury Notes - 12.4%
3.375%, 12/15/2008 (d)		84,000		84,105
4.500%, 02/15/2009 (d)		200,000		203,016
6.000%, 08/15/2009 (d)		50,000		52,285
5.750%, 08/15/2010		180,000		192,065
4.250%, 01/15/2011 (d)		300,000		310,125
4.750%, 01/31/2012		600,000		632,437
4.500%, 04/30/2012 (d)		250,000		261,152
4.750%, 05/31/2012 (d)		250,000		263,848

	PRINCIPAL
	AMOUNT		VALUE
U.S. TREASURY OBLIGATIONS - 16.4% (Continued)
U.S. Treasury Notes(Continued)
4.875%, 06/30/2012 (d)	$	100,000	$	106,062
3.625%, 05/15/2013 (d)		234,000		235,609
4.750%, 05/15/2014 (d)		250,000		265,840
4.125%, 05/15/2015 (d)		300,000		305,883
5.125%, 05/15/2016 (d)		300,000		324,703
				3,237,130
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $4,076,168)				4,270,107
	SHARES		VALUE
SHORT TERM INVESTMENTS (f) - 2.4%
Money Market Funds - 2.2%
Northern Institutional Diversified Assets Portfolio		573,082	$	573,082
	PRINCIPAL
	AMOUNT		VALUE
U.S. Treasury Bills - 0.2%
2.995%, 03/13/2008	$	50,000	$	49,697
TOTAL SHORT TERM INVESTMENTS
(Cost $622,785)				622,779
Total Investments (Cost $21,498,362) (c)- 99.8%				25,946,342
Northern Institutional Liquid Assets Portfolio (e) - 12.1%				3,145,593
Liabilities in Excess of Other Assets - (11.9)%				(3,098,550	)
TOTAL NET ASSETS - 100.0%			$	25,993,385

^(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 $21,532,230 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $5,324,474 and ($910,362), respectively, with a net appreciation / (depreciation) of  $4,414,112.

^(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 $4,259,414, $3,145,593, and $1,229,505, respectively.

(f) Securities and other assets with an aggregate value of $443,160 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of  December 31, 2007:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
S&P 500 E-Mini Futures (03/08)	6	$3,114

The accompanying notes are an 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, 2007
ASSETS
Investments in securities, at value	$	25,946,342
Collateral for securities loaned,
at fair value		3,145,593
Receivables:
Securities sold		13,820
Shares sold		11,394
Interest and dividends		131,319
Prepaid expenses and other		810
		29,249,278
LIABILITIES
Payables:
Payable upon return of securities loaned		3,145,593
Shares redeemed		46,545
Payable for securities purchased		14,006
Bank overdraft		63
Variation margin		2,490
Professional fees		17,998
Fund accounting fees		11,229
Custodian fees		4,406
Administration fees		2,226
Advisory fees		2,104
Royalty fees		1,997
Directors’ fees		99
Other accrued expenses		7,137
		3,255,893
NET ASSETS*
Paid-in capital		22,123,722
Accumulated undistributed net investment
income / (loss)		62,818
Accumulated net realized gain / (loss)
on investments and futures contracts		(644,249	)
Net unrealized appreciation / (depreciation)
on investments and futures contracts		4,451,094
	$	25,993,385
Investments at cost	$	21,498,362
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$25,993,385	503,510	$	51.62

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2007
	Percentage of ordinary distributions designated as
	qualified dividend income		45.83%
	Dividends received deduction for corporate shareholders		45.30%
	Undistributed ordinary income	$	62,818
	Unrealized appreciation	$	4,417,226

Capital Loss Carryforward Expiring December 31:  

2012 2013

$(30,789) $(576,478) 

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Interest	$	500,496
Dividends		347,530
Other income		6,962
		854,988
EXPENSES
Advisory fees		83,529
Administration fees		27,843
Fund accounting fees		26,286
Professional fees		20,512
Transfer agent fees		12,887
Custodian fees		10,453
Directors’ fees		3,216
Shareholder reporting fees		2,685
Royalty fees		1,926
Other expenses		3,225
		192,562
Reimbursements and waivers		(25,509	)
		167,053
NET INVESTMENT INCOME / (LOSS)		687,935
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		907,011
Net realized gain / (loss) on futures		31,855
		938,866
Net change in unrealized appreciation /
(depreciation) on investments and
futures contracts		269,166
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		1,208,032
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	1,895,967

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
	Advisory	Administration	Expense	Reimbursements
	Fee	Fee	Limit	and Waivers
	0.30%	0.10%	0.60%	$25,509

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
For the Year Ended December 31,
	2007			2006
OPERATIONS
Net investment income / (loss)	$	687,935		$	679,806
Net realized gain / (loss) on investments and futures		938,866			35,597
Net change in unrealized appreciation / (depreciation) on investments and futures contracts		269,166			2,287,546
		1,895,967			3,002,949
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(763,686	)		(684,111	)
		(763,686	)		(684,111	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		2,970,792			2,102,410
Reinvestment of distributions		763,686			684,111
Payments for shares redeemed		(7,657,161	)		(5,637,391	)
		(3,922,683	)		(2,850,870	)
NET INCREASE / (DECREASE) IN NET ASSETS		(2,790,402	)		(532,032	)
NET ASSETS
Beginning of period		28,783,787			29,315,819
End of period	$	25,993,385		$	28,783,787
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	62,818		$	119,128

FUND SHARE TRANSACTIONS
Sold		57,932			44,594
Reinvestment of distributions		15,006			14,655
Redeemed		(149,994	)		(119,602	)
Net increase / (decrease) from fund share transactions		(77,056	)		(60,353	)
TOTAL COST OF PURCHASES OF:
Common Stocks	$	1,197,906		$	1,578,727
U.S. Government Securities		2,149,724			3,916,122
Asset Backed Securities		511,105			—
Corporate Bonds		269,883			423,178
	$	4,123,618		$	5,918,027
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	4,109,031		$	3,189,054
U.S. Government Securities		2,114,762			2,616,941
Asset Backed Securities		823,696			—
Corporate Bonds		667,745			1,217,905
	$	7,715,234		$	7,023,900
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	763,686		$	684,111
	$	763,686		$	684,111

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	5-Year	Since Inception
18.50%	15.94%	-6.76%

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 Kevin P. Aug
Inception Date:	April 27, 2000
Total Net Assets:	$32.82 Million
Number of Equity Holdings:	100
Median Cap Size:	$9,428 (in millions)
Average Price-to-book Ratio:	4.81 x
Dividend Yield:	0.37%

Top 10 Equity Holdings  Sector Allocations

	(% of net assets)
Apple, Inc. Microsoft Corp. Google, Inc. Qualcomm, Inc. Research In Motion Ltd. Cisco Systems, Inc. Intel Corp. Oracle Corp. Gilead Sciences, Inc. eBay, Inc.	13.52% 6.41% 5.53% 4.33% 3.54% 3.27% 3.05% 2.69% 2.36% 1.87%

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 period ended December 31, 2007, the Summit Nasdaq-100 Index Portfolio’s total return was 18.50% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 19.24% total return for the Nasdaq-100 Index. The difference of 0.74% 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
	Year Ended December 31,
		2007			2006			2005			2004			2003
Net asset value, beginning of period		$	24.47		$	22.97		$	22.81		$	20.72		$	13.94
INVESTMENT ACTIVITIES:
Net investment income / (loss)			(0.01	)		0.02			0.02			0.12			(0.04	)
Net realized and unrealized gains / (losses)			4.49			1.51			0.26			1.97			6.82
Total from Investment Activities			4.48			1.53			0.28			2.09			6.78
DISTRIBUTIONS:
Net investment income			(0.00	)(1)		(0.03	)		(0.12	)		—			—
Return of capital			(0.31	)		—			—			—			—
Total Distributions			(0.31	)		(0.03	)		(0.12	)		—			—
Net asset value, end of period		$	28.64		$	24.47		$	22.97		$	22.81		$	20.72
Total return			18.50	%		6.67	%		1.30	%		10.09	%		48.64	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net(2)			0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Ratio of expenses to average net assets – gross			0.71	%		0.76	%		0.76	%		0.79	%		0.91	%
Ratio of net investment income / (loss) to average net assets			-0.01	%		0.05	%		0.09	%		0.61	%		-0.31	%
Portfolio turnover rate			13.28	%		8.23	%		13.86	%		4.19	%		3.97	%
Net assets, end of period (000’s)		$	32,822		$	26,108		$	26,330		$	27,607		$	23,350

⁽¹⁾ Amount is less than $0.005.

⁽²⁾ 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, 2007
	SHARES		VALUE
COMMON STOCKS - 98.3%
Consumer Discretionary - 12.7%
Amazon.Com, Inc. (a)		5,058	$	468,573
Apollo Group, Inc. (a)		3,089		216,693
Bed Bath & Beyond, Inc. (a)		6,522		191,682
Comcast Corp. - Class A (a)		26,784		489,076
Discovery Holding Co. (a)		4,394		110,465
EchoStar Communications Corp. - Class A (a)		3,980		150,126
Expedia, Inc. (a)		5,063		160,092
Focus Media Holding Ltd - ADR (a) (c)		1,970		111,916
Garmin Ltd. (c)		3,704		359,288
IAC/InterActiveCorp		5,395		145,233
Lamar Advertising Co. (a) (c)		1,442		69,317
Liberty Global, Inc. (a)		3,463		135,715
Liberty Media Corp. - Interactive (a)		10,220		194,998
PetSmart, Inc.		2,334		54,919
Sears Holdings Corp. (a) (c)		2,636		269,004
Sirius Satellite Radio, Inc. (a) (c)		29,252		88,633
Staples, Inc.		8,699		200,686
Starbucks Corp. (a)		18,599		380,721
Virgin Media, Inc.		6,571		112,627
Wynn Resorts Ltd (c)		2,282		255,881
				4,165,645
Consumer Staples - 1.5%
Costco Wholesale Corp.		4,187		292,085
Hansen Natural Corp. (a) (c)		1,672		74,053
Whole Foods Market, Inc. (c)		2,559		104,407
				470,545
Health Care - 12.4%
Amgen, Inc. (a)		9,336		433,564
Amylin Pharmaceuticals, Inc. (a) (c)		2,391		88,467
Biogen Idec, Inc. (a)		5,841		332,470
Celgene Corp. (a)		6,996		323,285
Cephalon, Inc. (a)		1,222		87,691
Dentsply International, Inc.		2,663		119,888
Express Scripts, Inc. (a)		4,119		300,687
Genzyme Corp. (a)		6,080		452,595
Gilead Sciences, Inc. (a)		16,815		773,658
Henry Schein, Inc. (a) (c)		1,668		102,415
Hologic, Inc. (a) (c)		2,425		166,452
Intuitive Surgical, Inc. (a)		699		226,826
Patterson Companies, Inc. (a)		2,520		85,554
Teva Pharmaceutical Industries, Ltd - ADR (c)		11,269		523,783
Vertex Pharmaceuticals, Inc. (a) (c)		2,590		60,166
				4,077,501
Industrials - 5.0%
C.H. Robinson Worldwide, Inc.		3,073		166,311
Cintas Corp.		3,514		118,141
Expeditors International Washington, Inc.		3,859		172,420
Fastenal Co. (c)		2,627		106,183
Foster Wheeler Ltd (a)		1,374		212,997
Joy Global, Inc.		1,990		130,982
Monster Worldwide, Inc. (a) (c)		2,394		77,566
Paccar, Inc.		7,561		411,923
Ryanair Holdings PLC - ADR (a) (c)		2,183		86,097

	SHARES		VALUE
Industrials - 5.0% (Continued)
Stericycle, Inc. (a)		1,672	$	99,317
UAL Corp. (a) (c)		1,407		50,174
				1,632,111
Information Technology - 64.5%
Activision, Inc. (a)		4,700		139,590
Adobe Systems, Inc. (a)		10,299		440,076
Akamai Technologies, Inc. (a) (c)		2,979		103,073
Altera Corp.		8,651		167,137
Apple, Inc. (a)		22,405		4,437,982
Applied Materials, Inc.		13,140		233,366
Autodesk, Inc. (a)		4,416		219,740
Baidu.com - ADR (a)		430		167,868
BEA Systems, Inc. (a)		6,701		105,742
Broadcom Corp. - Class A (a)		7,873		205,800
Cadence Design Systems, Inc. (a)		5,158		87,738
Check Point Software Technologies (a)		4,052		88,982
Cisco Systems, Inc. (a)		39,696		1,074,571
Citrix Systems, Inc. (a)		4,155		157,932
Cognizant Technology Solutions Corp. (a)		5,195		176,318
Dell, Inc. (a)		15,099		370,077
eBay, Inc. (a)		18,488		613,617
Electronic Arts, Inc. (a)		5,797		338,603
Fiserv, Inc. (a)		3,804		211,084
Flextronics International Ltd. (a)		16,628		200,534
Google, Inc. (a)		2,624		1,814,444
Infosys Technologies Ltd. - ADR (a) (c)		2,100		95,256
Intel Corp.		37,497		999,670
Intuit, Inc. (a)		7,676		242,638
Juniper Networks, Inc. (a)		6,224		206,637
Kla-Tencor Corp. (a) (c)		4,070		196,011
Lam Research Corp. (a) (c)		2,395		103,536
Linear Technology Corp. (c)		5,470		174,110
Logitech International S.A. (a) (c)		3,269		119,776
Marvell Technology Group Ltd. (a)		10,383		145,154
Microchip Technology, Inc. (c)		3,352		105,320
Microsoft Corp.		59,088		2,103,533
Network Appliance, Inc. (a)		6,591		164,511
Nvidia Corp. (a)		9,938		338,091
Oracle Corp. (a)		39,108		883,059
Paychex, Inc.		6,510		235,792
Qualcomm, Inc.		36,147		1,422,384
Research In Motion Ltd. (a)		10,257		1,163,144
SanDisk Corp. (a)		3,852		127,771
Sun Microsystems, Inc. (a)		6,642		120,419
Symantec Corp. (a)		16,609		268,069
Tellabs, Inc. (a) (c)		4,615		30,182
VeriSign, Inc. (a)		3,871		145,588
Xilinx, Inc.		7,143		156,217
Yahoo!, Inc. (a)		11,871		276,120
				21,177,262
Materials - 0.7%
Sigma-Aldrich Corp.		2,287		124,870
Steel Dynamics, Inc.		1,823		108,596
				233,466

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
Telecommunication Services - 1.5%
Leap Wireless International, Inc. (a) (c)		1,250	$	58,300
Level 3 Communications, Inc. (a) (c)		27,648		84,050
Millicom International Cellular S.A. (a) (c)		1,794		211,584
NII Holdings, Inc. (a)		3,083		148,971
				502,905
TOTAL COMMON STOCKS
(Cost $21,073,499)				32,259,435
SHORT TERM INVESTMENTS (e) - 2.7%
Money Market Funds - 1.8%
Northern Institutional Diversified Assets Portfolio		604,018	$	604,018

	PRINCIPAL
	AMOUNT		VALUE
U.S. Treasury Bill - 0.9%
2.995%, 03/13/2008	$	300,000	$	298,180
TOTAL SHORT TERM INVESTMENTS
(Cost $902,234)				902,198
Total Investments (Cost $21,975,733) (b) - 101.0%				33,161,633
Northern Institutional Liquid Assets Portfolio (d) - 10.4%				3,417,312
Liabilities in Excess of Other Assets - (11.4)%				(3,756,954	)
TOTAL NET ASSETS - 100.0%			$	32,821,991

ADR American Depository Receipt

^(a) Non-income producing.

(b) For federal income tax purposes, cost is $22,807,035 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $12,699,440 and ($2,344,842), respectively, with a net appreciation / (depreciation) of $10,354,598.

(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 values of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted are $3,304,811, $3,417,312, and $0, respectively.

^(e) Securities and other assets with an aggregate value of $883,995 have been segregated with the custodian or designated to cover margin requirements for the following open futures contracts as of December 31, 2007:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
Nasdaq-100 E Mini (03/08)	21	$22,491

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, 2007
ASSETS
Investments in securities, at value	$	33,161,633
Collateral for securities loaned,
at fair value		3,417,312
Receivables:
Shares sold		4,854
Interest and dividends		17,100
Prepaid expenses and other		773
		36,601,672
LIABILITIES
Payables:
Payable upon return of securities loaned		3,417,312
Shares redeemed		308,893
Variation Margin		8,505
Professional fees		16,072
Fund accounting fees		8,366
Advisory fees		5,146
Custodian fees		3,644
Administration fees		2,836
Directors’ fees		58
Other accrued expenses		8,849
		3,779,681
NET ASSETS*
Paid-in capital		31,745,363
Accumulated undistributed net
investment income / (loss)		—
Accumulated net realized gain / (loss)
on investments and futures contracts		(10,131,763	)
Net unrealized appreciation / (depreciation)
on investments and futures contracts		11,208,391
	$	32,821,991
Investments at cost	$	21,975,733
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$32,821,991	1,145,855	$	28.64

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2006
	Percentage of ordinary distributions designated as
	qualified dividend income		0.49%
	Dividends received deduction for corporate shareholders		0.50%
	Unrealized appreciation	$	10,377,089

Capital Loss Carryforward Expiring December 31:  

 2008  2009  2010 2011  2012   2013  2014  2015

 $(905,274) $(1,618,824) $(3,618,754)  $(231,064) $(139,726)  $(1,358,042) $(708,047)  $(697,707)

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Interest	$	14,132
Dividends		170,495
Foreign dividend taxes withheld		(729	)
Other income		6,651
		190,549
EXPENSES
Advisory fees		103,639
Administration fees		29,611
Professional fees		19,107
Fund accounting fees		19,114
Transfer agent fees		13,685
Custodian fees		10,316
Royalty fees		5,031
Directors’ fees		3,404
Shareholder reporting fees		2,998
Other expenses		2,506
		209,411
Reimbursements and waivers		(16,937	)
		192,474
NET INVESTMENT INCOME / (LOSS)		(1,925	)
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		(572,880	)
Net realized gain / (loss) on futures contracts		122,528
		(450,352	)
Net change in unrealized appreciation /
(depreciation) on investments
and futures contracts		5,372,837
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		4,922,485
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	4,920,560

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
	Advisory	Administration	Expense	Reimbursements
	Fee	Fee	Limit	and Waivers
	0.35%	0.10%	0.65%	$16,937

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
For the Year Ended December 31,
	2007			2006
OPERATIONS
Net investment income / (loss)	$	(1,925	)	$	13,649
Net realized gain / (loss) on investments and futures		(450,352	)		(1,016,427	)
Net change in unrealized appreciation / (depreciation) on investments and futures contracts		5,372,837			2,663,588
		4,920,560			1,660,810
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(4,349	)		(33,790	)
Return of capital		(333,534	)		—
		(337,883	)		(33,790	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		7,916,212			5,005,689
Reinvestment of distributions		337,883			33,790
Payments for shares redeemed		(6,123,115	)		(6,888,662	)
		2,130,980			(1,849,183	)
NET INCREASE / (DECREASE) IN NET ASSETS		6,713,657			(222,163	)
NET ASSETS
Beginning of period		26,108,334			26,330,497
End of period	$	32,821,991		$	26,108,334
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	—		$	15,819

FUND SHARE TRANSACTIONS
Sold		293,096			216,002
Reinvestment of distributions		13,419			1,429
Redeemed		(227,805	)		(296,572	)
Net increase / (decrease) from fund share transactions		78,710			(79,141	)
TOTAL COST OF PURCHASES OF:
Common Stocks	$	5,398,985		$	2,032,713
	$	5,398,985		$	2,032,713
TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	3,838,361		$	2,430,165
	$	3,838,361		$	2,430,165
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	4,349		$	33,790
Return of capital		333,534			—
	$	337,883		$	33,790

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
-2.20%	15.54%	6.80%

Summit Russell 2000 Small Cap Index Portfolio Class F - Average Annual Total Return
1-Year	5-Year	Since Inception
-2.40%	15.31%	6.29%

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 Kevin P. Aug
Inception Date:	April 27, 2000
Total Net Assets:	$92.37 Million
Number of Equity Holdings:	1,931
Median Cap Size:	$588 (in millions)
Average Price-to-book Ratio:	2.20 x
Dividend Yield:	1.26%

Top 10 Equity Holdings  Sector Allocations

	(% of net assets)
Hologic, Inc. CF Industries Holdings, Inc. Exterran Holdings, Inc. Priceline.com, Inc. Terra Industries, Inc. Chipolte Mexican Grill, Inc. Flir Systems, Inc. Inverness Medical Innovations, Inc. Bucyrus International, Inc. - Class A Equinix, Inc.	0.61% 0.43% 0.36% 0.31% 0.30% 0.30% 0.30% 0.28% 0.27% 0.27%

 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 period ended December 31, 2007, the Summit Russell 2000 Index Portfolio‘s (Class I) total return was -2.20% (before the impact of any product or contract-level fees). This compares to a -1.57% total return for the Russell 2000 Index. The difference of 0.63% 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.
	Class I
	Year Ended December 31,
		2007			2006			2005			2004			2003
Net asset value, beginning of period		$	74.19		$	65.46		$	63.92		$	54.40		$	37.52
INVESTMENT ACTIVITIES:
Net investment income / (loss)			0.74	(4)		0.46			0.41			0.31	(4)		0.22
Net realized and unrealized gains / (losses)			(1.98	)		10.88			2.07			9.32			16.95
Total from Investment Activities			(1.24	)		11.34			2.48			9.63			17.17
DISTRIBUTIONS:
Net investment income			(0.47	)		(0.44	)		(0.31	)		(0.11	)		(0.29	)
Net realized gains			(5.48	)		(2.17	)		(0.63	)		—			—
Total Distributions			(5.95	)		(2.61	)		(0.94	)		(0.11	)		(0.29	)
Net asset value, end of period		$	67.00		$	74.19		$	65.46		$	63.92		$	54.40
Total return			-2.20	%		17.60	%		4.01	%		17.72	%		46.19	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net(2)			0.64	%		0.65	%		0.69	%		0.75	%		0.75	%
Ratio of expenses to average net assets – gross			0.64	%		0.65	%		0.69	%		0.76	%		1.12	%
Ratio of net investment income / (loss) to average net assets			1.04	%		0.84	%		0.70	%		0.60	%		0.57	%
Portfolio turnover rate (5)			19.30	%		24.45	%		25.20	%		27.27	%		23.87	%
Net assets, end of period (000’s)		$	91,676		$	95,694		$	75,815		$	68,770		$	25,794

	Class F
	Year Ended December 31,
	2007			2006			2005(1)
Net asset value, beginning of period	$	74.02		$	65.43		$	64.41
INVESTMENT ACTIVITIES:
Net investment income / (loss)		0.59	(4)		0.31			0.12
Net realized and unrealized gains / (losses)		(1.97	)		10.87			0.90
Total from Investment Activities		(1.38	)		11.18			1.02
DISTRIBUTIONS:
Net investment income		(0.38	)		(0.42	)		—
Net realized gains		(5.48	)		(2.17	)		—
Total Distributions		(5.86	)		(2.59	)		—
Net asset value, end of period	$	66.78		$	74.02		$	65.43
Total return		-2.40	%		17.35	%		1.58	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net(2)		0.84	%		0.85	%		0.84	%(3)
Ratio of expenses to average net assets – gross		0.84	%		0.85	%		0.84	%(3)
Ratio of net investment income / (loss) to average net assets		0.84	%		0.64	%		0.74	%(3)
Portfolio turnover rate (5)		19.30	%		24.45	%		25.20	%
Net assets, end of period (000’s)	$	699		$	272		$	5

(1)	Portfolio commenced operations on October 4, 2005.
(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
FINANCIAL HIGHLIGHTS	RUSSELL 2000 SMALL CAP INDEX  PORTFOLIO

December 31, 2007
	SHARES		VALUE
COMMON STOCKS - 93.4%
Capital Goods - 10.4%
AAR Corp. (a) (c)		2,562	$	97,433
ABX Air, Inc. (a) (c)		4,100		17,138
ACCO Brands Corp. (a) (c)		3,577		57,375
Accuride Corp. (a) (c)		1,591		12,505
Actuant Corp. - Class A (c)		3,836		130,462
Advanced Energy Industries, Inc. (a)		2,476		32,386
Aerovironment, Inc. (a) (c)		464		11,229
Aftermarket Technology Corp. (a) (c)		1,530		41,708
Airtran Holdings, Inc. (a) (c)		6,372		45,624
Airvana, Inc. (a) (c)		571		3,101
Alaska Air Group, Inc. (a) (c)		2,784		69,628
Allegiant Travel Co. (a) (c)		348		11,185
Altra Holdings, Inc. (a)		692		11,508
American Axle & Manufacturing Holdings, Inc. (c)		2,961		55,134
American Commercial Lines, Inc. (a) (c)		3,682		59,796
American Ecology Corp.		1,094		25,687
American Railcar Industries, Inc. (c)		607		11,685
American Superconductor Corp. (a) (c)		2,305		63,019
Amerigon, Inc. (a) (c)		1,424		30,103
AO Smith Corp. (c)		1,439		50,437
Applied Industrial Technologies, Inc. (c)		3,147		91,326
Arctic Cat, Inc. (c)		846		10,101
ARGON ST, Inc. (a) (c)		898		16,667
Arkansas Best Corp. (c)		1,495		32,800
Arlington Tankers Ltd (c)		876		19,386
Arris Group, Inc. (a) (c)		9,080		90,621
ArvinMeritor, Inc. (c)		4,953		58,099
Astec Industries, Inc. (a)		1,141		42,434
ASV, Inc. (a) (c)		1,469		20,346
Asyst Technologies, Inc. (a) (c)		3,403		11,094
Atlas Air Worldwide Holdings, Inc. (a) (c)		879		47,659
ATMI, Inc. (a) (c)		2,508		80,883
Audiovox Corp. (a) (c)		1,164		14,434
Axcelis Technologies, Inc. (a) (c)		7,095		32,637
Azz, Inc. (a) (c)		772		21,886
Badger Meter, Inc. (c)		977		43,916
Baldor Electric Co. (c)		3,016		101,519
Beazer Homes USA, Inc. (c)		2,595		19,281
Belden CDT, Inc. (c)		2,983		132,743
Blount International, Inc. (a) (c)		2,668		32,843
Briggs & Stratton Corp. (c)		3,276		74,234
Bristow Group, Inc. (a) (c)		1,344		76,138
Brooks Automation, Inc. (a)		5,243		69,260
Bucyrus International, Inc. - Class A		2,486		247,084
Cascade Corp. (c)		882		40,978
Celadon Group, Inc. (a) (c)		1,613		14,775
Champion Enterprises, Inc. (a) (c)		5,364		50,529
Chart Industries, Inc. (a) (c)		949		29,324
Cognex Corp.		3,273		65,951
Cohu, Inc.		1,585		24,250
Columbus McKinnon Corp. NY (a) (c)		1,286		41,949
Commercial Vehicle Group, Inc. (a) (c)		1,480		21,460
CommScope, Inc. (a)		1		42
Cooper Tire & Rubber Co.		4,312		71,493
Credence Systems Corp. (a) (c)		7,033		17,020

	SHARES		VALUE
Capital Goods - 10.4% (Continued)
CTS Corp.		2,523	$	25,053
Curtiss-Wright Corp. (c)		3,078		154,516
Cymer, Inc. (a) (c)		2,383		92,770
Darling International, Inc. (a)		5,719		66,112
Dionex Corp. (a) (c)		1,257		104,155
Double Hull Tankers, Inc. (c)		1,422		17,405
Dynamex, Inc. (a) (c)		725		19,618
Eagle Bulk Shipping, Inc. (c)		2,758		73,225
Electro Scientific Industries, Inc. (a) (c)		2,038		40,454
Energysolutions, Inc. (a) (c)		2,008		54,196
EnPro Industries, Inc. (a)		1,481		45,393
Entegris, Inc. (a) (c)		7,874		67,953
ESCO Technologies, Inc. (a) (c)		1,814		72,451
Esterline Technologies Corp. (a) (c)		1,956		101,223
ExpressJet Holdings, Inc. (a) (c)		3,474		8,616
Faro Technologies, Inc. (a) (c)		974		26,473
Federal Signal Corp. (c)		3,394		38,081
FEI Co. (a) (c)		2,361		58,624
Fleetwood Enterprises, Inc. (a) (c)		4,486		26,826
Flow International Corp. (a) (c)		2,483		23,142
Force Protection, Inc. (a) (c)		4,608		21,565
Forward Air Corp. (c)		2,212		68,948
Franklin Electric Co., Inc. (c)		1,272		48,679
Freightcar America, Inc.		883		30,905
Fuel-tech N V (a) (c)		1,209		27,384
Gehl Co. (a) (c)		708		11,356
Genco Shipping & Trading Ltd (c)		1,172		64,179
General Maritime Corp. (c)		1,884		46,064
Genesee & Wyoming, Inc. (a)		2,544		61,488
Genlyte Group, Inc. (a)		1,868		177,834
Golar LNG Ltd.		2,281		50,456
The Gorman-Rupp Co. (c)		960		29,952
Greenbrier Cos., Inc. (c)		951		21,169
Gulfmark Offshore, Inc. (a) (c)		1,505		70,419
Hardinge, Inc.		739		12,400
Hayes Lemmerz International, Inc. (a) (c)		6,288		28,736
Headwaters, Inc. (a) (c)		2,970		34,868
Heartland Express, Inc. (c)		4,255		60,336
Heico Corp. (c)		1,684		91,744
Herman Miller, Inc. (c)		4,178		135,325
Horizon Lines Inc. - Class A (c)		2,218		41,344
Hovnanian Enterprises, Inc. (a) (c)		2,492		17,868
HUB Group, Inc. (a) (c)		2,812		74,743
Hurco Cos, Inc. (a) (c)		371		16,194
Intevac, Inc. (a) (c)		1,476		21,461
Itron, Inc. (a) (c)		1,952		187,333
JetBlue Airways Corp. (a) (c)		12,214		72,063
Kadant, Inc. (a) (c)		957		28,394
Kimball International, Inc.		1,735		23,769
Knight Transportation, Inc. (c)		4,022		59,566
Knightsbridge Tankers Ltd. (c)		1,125		27,169
Knoll, Inc. (c)		3,288		54,022
Kulicke & Soffa Industries, Inc. (a) (c)		3,986		27,344
L-1 Identity Solutions, Inc. (a) (c)		3,780		67,851
Ladish Co., Inc. (a)		985		42,542
Lear Corp. (a) (c)		5,080		140,513
Lindsay Manufacturing Co. (c)		754		53,300

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)
Littelfuse, Inc. (a)		1,569	$	51,714
LTX Corp. (a) (c)		4,335		13,785
M/I Homes, Inc. (c)		845		8,872
Marine Products Corp. (c)		813		5,699
Marten Transport Ltd. (a) (c)		1,075		14,996
MasTec, Inc. (a) (c)		2,831		28,791
Mattson Technology, Inc. (a) (c)		3,685		31,544
Measurement Specialties, Inc. (a) (c)		925		20,442
Meritage Homes Corp. (a) (c)		1,589		23,152
Middleby Corp. (a) (c)		868		66,506
Midwest Air Group, Inc. (a) (c)		1,631		24,139
Miller Industries Inc./TN (a)		622		8,515
Mine Safety Appliances Co. (c)		1,860		96,478
MKS Instruments, Inc. (a) (c)		3,322		63,583
Modine Manufacturing Co. (c)		2,361		38,980
Monaco Coach Corp. (c)		1,879		16,686
Moog, Inc. (a) (c)		2,585		118,419
MTC Technologies, Inc. (a) (c)		679		15,956
MTS Systems Corp.		1,234		52,655
NACCO Industries, Inc.		388		38,680
Noble International Ltd. (c)		806		13,146
Nordic American Tanker Shipping (c)		1,760		57,763
Nordson Corp. (c)		2,067		119,803
Odyssey Marine Exploration, Inc. (a) (c)		2,748		17,010
Old Dominion Freight Line (a) (c)		1,978		45,712
Opnext, Inc. (a) (c)		1,346		11,912
Orbital Sciences Corp. (a)		4,194		102,837
OYO Geospace Corp. (a) (c)		256		19,292
Pacer International, Inc. (c)		2,640		38,544
Palm Harbor Homes, Inc. (a) (c)		644		6,794
Park-Ohio Holdings Corp. (a) (c)		536		13,454
Patriot Transportation Holding, Inc. (a) (c)		102		9,407
PHI, Inc. (a) (c)		966		29,965
Photronics, Inc. (a) (c)		2,909		36,275
Pinnacle Airlines Corp. (a) (c)		1,299		19,810
Plantronics, Inc. (c)		3,307		85,982
Polaris Industries, Inc. (c)		2,377		113,549
Polycom, Inc. (a) (c)		6,130		170,291
Powell Industries, Inc. (a) (c)		516		22,740
Power-One, Inc. (a) (c)		4,915		19,611
Powerwave Technologies, Inc. (a) (c)		9,155		36,895
Preformed Line Products Co. (c)		163		9,698
Raser Technologies, Inc. (a) (c)		1,429		21,221
Regal-Beloit Corp. (c)		2,161		97,137
Republic Airways Holdings, Inc. (a)		2,285		44,763
Robbins & Myers, Inc. (c)		888		67,159
Rofin-Sinar Technologies, Inc. (a)		2,158		103,821
Rudolph Technologies, Inc. (a) (c)		1,719		19,459
Saia, Inc. (a)		1,029		13,686
Sauer-Danfoss, Inc. (c)		690		17,284
Semitool, Inc. (a) (c)		1,544		13,402
Ship Finance International Ltd. (c)		2,082		57,692
Skyline Corp. (c)		480		14,088
Skywest, Inc.		4,474		120,127
Sonic Solutions, Inc. (a) (c)		1,805		18,754
Spartan Motors, Inc. (c)		2,139		16,342
Standard Motor Products, Inc. (c)		1,038		8,470
Standard-Pacific Corp. (c)		4,319		14,469
Standex International Corp.		871		15,199

	SHARES		VALUE
Capital Goods - 10.4% (Continued)
Stoneridge, Inc. (a) (c)		944	$	7,590
Sun Hydraulics Corp. (c)		745		18,796
Superior Industries International (c)		1,615		29,345
Symmetricom, Inc. (a) (c)		3,232		15,223
TAL International Group, Inc. (c)		1,136		25,867
Taser International, Inc. (a) (c)		4,359		62,726
Tbs International Limited (a) (c)		329		10,877
Team, Inc. (a)		828		30,288
Technitrol, Inc. (c)		2,852		81,510
Tecumseh Products Co. (a)		1,167		27,319
Teledyne Technologies, Inc. (a)		2,405		128,259
Tennant Co.		1,106		48,985
Tenneco, Inc. (a) (c)		3,180		82,903
Textainer Group Holdings Ltd Shs (c)		462		6,713
Titan International, Inc.		1,605		50,172
TransDigm Group, Inc. (a) (c)		720		32,522
Triumph Group, Inc. (c)		1,118		92,067
TurboChef Technologies, Inc. (a) (c)		908		14,982
Twin Disc, Inc. (c)		302		21,373
Ultra Clean Holdings (a)		1,255		15,311
Ultrapetrol Bahamas Ltd (a) (c)		1,010		17,180
Ultratech, Inc. (a) (c)		1,682		19,074
Universal Truckload Services, Inc. (a) (c)		417		7,990
Veeco Instruments, Inc. (a) (c)		2,126		35,504
Vicor Corp. (c)		1,393		21,717
Visteon Corp. (a) (c)		9,002		39,519
Wabash National Corp. (c)		2,191		16,849
Watts Water Technologies, Inc. (c)		2,049		61,060
WCI Communities, Inc. (a) (c)		2,348		8,875
Werner Enterprises, Inc. (c)		3,065		52,197
Westinghouse Air Brake Technologies Corp.		3,410		117,440
Winnebago Industries, Inc. (c)		2,287		48,073
Woodward Governor Co.		2,112		143,510
X-Rite, Inc. (a) (c)		2,006		23,310
Zygo Corp. (a) (c)		1,269		15,812
				9,601,967
Consumer Discretionary - 16.2%
1-800-FLOWERS.COM, Inc. (a) (c)		1,763		15,391
99 Cents Only Stores (a) (c)		3,325		26,467
Aaron Rents, Inc. (c)		3,077		59,201
ABM Industries, Inc. (c)		3,075		62,699
AC Moore Arts & Crafts, Inc. (a) (c)		1,045		14,369
Administaff, Inc. (c)		1,606		45,418
The Advisory Board Co. (a) (c)		1,310		84,089
Aeropostale, Inc. (a) (c)		5,337		141,430
AFC Enterprises (a) (c)		1,805		20,433
Ambassadors Group, Inc. (c)		1,026		18,786
Ambassadors International, Inc. (c)		465		6,780
Amerco, Inc. (a) (c)		667		43,809
American Greetings Corp. (c)		3,749		76,105
American Public Education Inc Com (a)		356		14,874
American Woodmark Corp. (c)		839		15,253
Ameristar Casinos, Inc. (c)		1,813		49,930
AMN Healthcare Services, Inc. (a) (c)		2,284		39,216
Arbitron, Inc. (c)		2,116		87,962
Asbury Automotive Group, Inc. (c)		1,695		25,510
Bally Technologies, Inc. (a) (c)		3,663		182,124
Barrett Business Services, Inc. (c)		454		8,177

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 Discretionary - 16.2% (Continued)
Bauer Eddie Holdings, Inc. (a) (c)		2,017	$	12,808
Bebe Stores, Inc. (c)		1,660		21,348
Belo Corp.		5,627		98,135
Benihana, Inc. (a) (c)		544		6,936
Big 5 Sporting Goods Corp. (c)		1,598		23,043
BJ’s Restaurants, Inc. (a) (c)		1,104		17,951
Blockbuster, Inc. (a) (c)		13,416		52,322
Blue Nile, Inc. (a) (c)		924		62,887
Blyth, Inc.		1,815		39,821
Bob Evans Farms, Inc. (c)		2,519		67,837
The Bon-Ton Stores Inc. (c)		670		6,358
Books-A-Million, Inc.		998		11,896
Borders Group, Inc. (c)		4,340		46,221
Bowne & Co, Inc.		2,057		36,203
Bright Horizons Family Solutions, Inc. (a) (c)		1,832		63,277
Brightpoint, Inc. (a)		3,532		54,252
Brown Shoe Co, Inc.		2,986		45,298
The Buckle, Inc. (c)		1,019		33,627
Buffalo Wild Wings, Inc. (a) (c)		984		22,848
Build-A-Bear-Workshop, Inc. (a) (c)		1,034		14,424
Cabela’s, Inc. (a) (c)		2,251		33,923
Cache, Inc. (a) (c)		862		8,051
California Pizza Kitchen, Inc. (a) (c)		1,278		19,898
Callaway Golf Co.		4,804		83,734
Capella Education Company (a)		705		46,149
Carmike Cinemas, Inc. (c)		866		6,287
Carrols Restaurant Group Inc. (a) (c)		693		6,639
Carter’s, Inc. (a)		3,858		74,652
Casella Waste Systems, Inc. (a)		1,547		20,173
Casual Male Retail Group, Inc. (a) (c)		2,402		12,442
The Cato Corp. (c)		2,148		33,638
CBIZ, Inc. (a) (c)		3,945		38,700
CBRL Group, Inc. (c)		1,634		52,925
CDI Corp. (c)		901		21,858
CEC Entertainment, Inc. (a) (c)		1,893		49,142
Central European Distribution Corp. (a) (c)		2,233		129,693
Central Garden & Pet Co. (a) (c)		4,619		24,758
Cenveo, Inc. (a) (c)		3,744		65,408
Charlotte Russe Holding, Inc. (a) (c)		1,678		27,100
Charming Shoppes, Inc. (a) (c)		8,597		46,510
Charter Communications, Inc. (a) (c)		26,956		31,539
Chemed Corp.		1,677		93,711
Cherokee, Inc. (c)		520		16,780
The Children’s Place Retail Stores, Inc. (a) (c)		1,588		41,177
Chipolte Mexican Grill, Inc. (a) (c)		2,235		275,017
Christopher & Banks Corp. (c)		2,568		29,404
Churchill Downs, Inc.		585		31,572
Cinemark Holdings, Inc. (c)		1,887		32,079
Citadel Broadcasting Corp. (c)		12,170		25,070
Citi Trends, Inc. (a) (c)		922		14,236
CKE Restaurants, Inc. (c)		4,197		55,400
CKX, Inc. (a) (c)		2,503		30,036
CNET Networks, Inc. (a) (c)		10,544		96,372
Coinstar, Inc. (a) (c)		1,958		55,118
Collective Brands, Inc. (a)		4,280		74,429
Columbia Sportswear Co. (c)		925		40,783
Conn’s, Inc. (a) (c)		508		8,692
Consolidated Graphics, Inc. (a)		791		37,826

	SHARES		VALUE
Consumer Discretionary - 16.2% (Continued)
Core-Mark Holding Co., Inc. (a) (c)		646	$	18,553
Corinthian Colleges, Inc. (a) (c)		6,057		93,278
Cornell Cos., Inc. (a) (c)		804		18,749
CoStar Group, Inc. (a) (c)		1,125		53,156
Courier Corp. (c)		671		22,150
Cox Radio, Inc. (a) (c)		2,203		26,766
CPI Corp. (c)		345		8,125
CRA International, Inc. (a) (c)		796		37,898
Cross Country Healthcare, Inc. (a) (c)		2,255		32,111
Crown Media Holdings, Inc. (a) (c)		1,039		6,754
CSK Auto Corp. (a) (c)		3,079		15,426
CSS Industries, Inc. (c)		453		16,625
Cumulus Media, Inc. (a) (c)		2,501		20,108
Deckers Outdoor Corp. (a) (c)		843		130,716
Denny’s Corp. (a) (c)		6,464		24,240
DeVry, Inc.		3,946		205,034
DG Fastchannel, Inc. (a) (c)		873		22,384
Diamond Management & Technology Consultants, Inc. (c)		2,052		14,918
Digital Theater Systems, Inc. (a) (c)		1,234		31,553
Dolan Media Co. (a)		747		21,790
Dollar Thrifty Automotive Group (a) (c)		1,732		41,014
Dominos Pizza, Inc. (c)		2,663		35,231
Dover Downs Gaming & Entertainment, Inc. (c)		975		10,969
Dress Barn, Inc. (a) (c)		3,233		40,445
DSW, Inc. - Class A (a) (c)		1,139		21,368
Dyncorp International, Inc. (a) (c)		1,759		47,282
Earthlink, Inc. (a) (c)		8,938		63,192
Elizabeth Arden, Inc. (a) (c)		1,823		37,098
Emmis Communications Corp. (a) (c)		2,314		8,909
Entercom Communications Corp. (c)		2,241		30,679
Entravision Communications Corp. (a) (c)		4,709		36,871
Ethan Allen Interiors, Inc. (c)		1,744		49,704
Exponent, Inc. (a) (c)		1,078		29,149
Ezcorp, Inc. (a) (c)		2,492		28,135
FGX International Holdings Ltd (a)		802		9,504
Finish Line (c)		2,991		7,238
First Advantage Corp. (a) (c)		479		7,889
Fisher Communications, Inc. (a) (c)		510		19,360
Forrester Research, Inc. (a)		1,027		28,777
Fossil, Inc. (a)		3,023		126,906
Fred’s, Inc. (c)		2,806		27,022
FTD Group, Inc. (c)		861		11,090
FTI Consulting, Inc. (a) (c)		3,215		198,173
Furniture Brands International, Inc. (c)		3,169		31,880
G&K Services, Inc. (c)		1,494		56,055
Gaiam, Inc. - Class A (a) (c)		1,138		33,776
Gander Mountain Co. (a) (c)		336		1,656
GateHouse Media, Inc. (c)		1,103		9,684
Gaylord Entertainment Co. (a)		2,855		115,542
Gemstar-TV Guide International, Inc. (a) (c)		17,470		83,157
Genesco, Inc. (a) (c)		1,636		61,841
The Geo Group Inc. (a) (c)		3,286		92,008
Gevity HR, Inc.		1,842		14,165
G-III Apparel Group Ltd (a)		862		12,732
Global Sources Ltd (a) (c)		1,142		32,222
Glu Mobile, Inc. (a) (c)		484		2,526
Gray Television, Inc. (c)		3,019		24,212
Great Wolf Resorts, Inc. (a) (c)		1,884		18,482

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 Discretionary - 16.2% (Continued)
Greenfield Online, Inc. (a)		1,427	$	20,848
Group 1 Automotive, Inc. (c)		1,745		41,444
GSI Commerce, Inc. (a) (c)		1,317		25,682
Gymboree Corp. (a)		2,338		71,215
Harris Interactive, Inc. (a) (c)		3,812		16,239
Haverty Furniture Cos., Inc. (c)		1,582		14,222
Heelys, Inc. (a) (c)		446		3,104
Heidrick & Struggles International, Inc.		1,288		47,798
Helen of Troy Ltd. (a) (c)		2,013		34,503
hhgregg, Inc. (a) (c)		630		8,669
Hibbett Sports, Inc. (a) (c)		2,252		44,995
Home Solutions of America, Inc. (a) (c)		3,321		3,321
Hooker Furniture Corp. (c)		751		15,095
HOT Topic, Inc. (a)		3,105		18,071
Houston Wire & Cable Co. (c)		1,107		15,653
Hsw International, Inc. (a) (c)		900		5,607
Hudson Highland Group, Inc. (a)		1,725		14,507
Iconix Brand Group, Inc. (a) (c)		3,367		66,195
ICT Group, Inc. (a)		441		5,270
Ihop Corp. (c)		1,292		47,261
IKON Office Solutions, Inc. (c)		7,085		92,247
Infospace, Inc. (c)		2,192		41,210
infoUSA, Inc. (c)		2,360		21,075
Insight Enterprises, Inc. (a)		3,392		61,870
Inter Parfums, Inc. (c)		326		5,858
Internap Network Services Corp. (a) (c)		3,263		27,181
inVentiv Health, Inc. (a) (c)		2,050		63,468
iPass, Inc. (a) (c)		4,571		18,558
Isle of Capri Casinos, Inc. (a) (c)		1,050		14,459
J Crew Group, Inc. (a) (c)		2,583		124,526
Jack in the Box, Inc. (a)		4,394		113,233
Jackson Hewitt Tax Service, Inc. (c)		2,266		71,945
Jakks Pacific, Inc. (a) (c)		1,933		45,638
Jamba, Inc. (a) (c)		3,430		12,691
Jo-Ann Stores, Inc. (a) (c)		1,692		22,131
JOS A Bank Clothiers, Inc. (a) (c)		1,264		35,961
Journal Communications, Inc. (c)		3,074		27,482
Kellwood Co. (c)		1,799		29,935
Kelly Services, Inc. (c)		1,420		26,497
Kenneth Cole Productions, Inc. (c)		615		10,756
Kforce, Inc. (a)		2,085		20,329
Knology, Inc. (a) (c)		1,755		22,429
The Knot, Inc. (a) (c)		1,834		29,234
Korn/Ferry International (a)		2,977		56,027
Krispy Kreme Doughnuts, Inc. (a) (c)		3,858		12,191
K-Swiss, Inc. (c)		1,818		32,906
Lakes Entertainment, Inc. (a) (c)		1,609		11,150
Landry’s Restaurants, Inc. (c)		1,150		22,655
Lawson Products (c)		256		9,708
La-Z-Boy, Inc. (c)		3,636		28,833
Leapfrog Enterprises, Inc. (a) (c)		2,392		16,098
LECG Corp. (a) (c)		1,714		25,813
Lee Enterprises, Inc. (c)		3,214		47,085
Libbey, Inc. (c)		958		15,175
Life Time Fitness, Inc. (a) (c)		2,136		106,116
Lifetime Brands, Inc. (c)		756		9,813
Lin TV Corp. (a)		1,941		23,622
Lincoln Educational Services Corp. (a)		319		4,696

	SHARES		VALUE
Consumer Discretionary - 16.2% (Continued)
Liquidity Services, Inc. (a) (c)		545	$	7,031
Lithia Motors, Inc. (c)		1,112		15,268
Live Nation, Inc. (a) (c)		4,482		65,079
LKQ Corp. (a) (c)		7,542		158,533
Lodgenet Entertainment Corp. (a) (c)		1,406		24,521
Lodgian, Inc. (a) (c)		1,597		17,982
LoJack Corp. (a) (c)		1,323		22,240
LoopNet, Inc. (a) (c)		1,777		24,967
Lululemon Athletica, Inc. (a) (c)		849		40,217
Magna Entertainment Corp. (a) (c)		2,808		2,724
Maidenform Brands, Inc. (a) (c)		1,519		20,552
Mannatech, Inc. (c)		1,100		6,952
Marchex, Inc. (c)		1,620		17,593
Marcus Corp. (c)		1,511		23,345
MarineMax, Inc. (a) (c)		1,106		17,143
Martha Stewart Living Omnimedia (a) (c)		1,778		16,482
Marvel Entertainment, Inc. (a) (c)		3,306		88,303
Matthews International Corp. (c)		2,259		105,879
MAXIMUS, Inc. (c)		1,507		58,185
McCormick & Schmick’s Seafood Restaurants, Inc. (a)		837		9,985
Media General, Inc. (c)		1,553		33,001
Men’s Wearhouse, Inc. (c)		3,576		96,480
Midas, Inc. (a) (c)		1,091		15,994
Midway Games, Inc. (a) (c)		2,513		6,936
Monarch Casino & Resort, Inc. (a) (c)		697		16,784
Monro Muffler, Inc. (c)		1,188		23,154
Morgans Hotel Group Co. (a) (c)		1,264		24,370
Morton’s Restaurant Group, Inc. (a) (c)	��	673		6,279
Movado Group, Inc.		1,243		31,435
MPS Group, Inc. (a)		7,254		79,359
MTR Gaming Group, Inc. (a) (c)		1,594		10,823
Multimedia Games, Inc. (a) (c)		1,907		15,904
MWI Veterinary Supply, Inc. (a) (c)		376		15,040
National Cinemedia, Inc. (c)		2,910		73,361
National Presto Industries, Inc. (c)		333		17,536
Nautilus Group, Inc. (c)		2,307		11,189
Navigant Consulting, Inc. (a) (c)		3,840		52,493
Net 1 UEPS Technologies, Inc. (a)		2,768		81,268
NetFlix, Inc. (a) (c)		3,167		84,306
New York & Company, Inc. (a)		1,503		9,589
Nexstar Broadcasting Group, Inc. (a) (c)		699		6,389
NIC, Inc. (c)		2,688		22,687
Nu Skin Enterprises, Inc.		3,332		54,745
O’Charleys, Inc. (c)		1,623		24,313
On Assignment, Inc. (a) (c)		2,386		16,726
Orbitz Worldwide, Inc. (a) (c)		2,276		19,346
Overstock.com, Inc. (a) (c)		744		11,554
Oxford Industries, Inc.		1,016		26,182
Pacific Sunwear Of California (a) (c)		4,676		65,978
The Pantry Inc. (a)		1,593		41,625
Papa John’s International, Inc. (a) (c)		1,711		38,840
PC Connection, Inc. (a) (c)		615		6,980
PeopleSupport, Inc. (a) (c)		1,647		22,531
PEP Boys-Manny, Moe & Jack (c)		2,776		31,868
Perficient, Inc. (a) (c)		1,929		30,362
Perry Ellis International, Inc. (a) (c)		799		12,289
PetMed Express, Inc. (a) (c)		1,319		15,960
PF Chang’s China Bistro, Inc. (a) (c)		1,862		42,528

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 Discretionary - 16.2% (Continued)
PHH Corp. (a) (c)		3,742	$	66,009
Pier 1 Imports, Inc. (a) (c)		6,128		32,049
Pinnacle Entertainment, Inc. (a) (c)		3,952		93,109
Playboy Enterprises, Inc. (a) (c)		1,495		13,634
Premier Exhibitions, Inc. (a) (c)		1,924		21,049
Pre-Paid Legal Services, Inc. (a) (c)		656		36,310
Prestige Brands Holdings, Inc. (a) (c)		2,340		17,503
Priceline.com, Inc. (a) (c)		2,513		288,643
Pricesmart, Inc. (c)		518		15,571
Primedia, Inc. (c)		2,906		24,701
Protection One, Inc. (a) (c)		430		5,113
Providence Service Corp. (a) (c)		843		23,722
Quiksilver, Inc. (a)		8,574		73,565
Radio One, Inc. (a) (c)		5,375		12,739
RC2 Corp. (a)		1,462		41,038
Red Robin Gourmet Burgers, Inc. (a) (c)		1,162		37,172
Regis Corp.		2,926		81,811
Renaissance Learning, Inc. (c)		526		7,364
Rent-A-Center, Inc. (a)		4,879		70,843
Resources Connection, Inc.		3,383		61,435
Retail Ventures, Inc. (a) (c)		1,489		7,579
Revlon, Inc. (a) (c)		13,647		16,103
Riviera Holdings Corp. (a) (c)		735		22,638
Rollins, Inc. (c)		3,117		59,846
RSC Holdings, Inc. (a) (c)		1,374		17,244
Ruby Tuesday, Inc. (c)		3,762		36,680
Rush Enterprises, Inc. - Class A (a) (c)		2,295		41,723
Russ Berrie & Co, Inc. (a) (c)		826		13,513
Ruth’s Chris Steak House, Inc. (a) (c)		1,226		10,960
Salem Communications Corp. (c)		741		4,883
Sally Beauty Holdings, Inc. (a) (c)		6,224		56,327
Schawk, Inc.		1,033		16,032
Scholastic Corp. (a) (c)		2,066		72,083
School Specialty, Inc. (a) (c)		1,477		51,030
Sealy Corp. (c)		2,966		33,190
Select Comfort Corp. (a) (c)		3,784		26,526
Shoe Carnival, Inc. (a) (c)		562		7,930
Shuffle Master, Inc. (a) (c)		2,443		29,292
Shutterfly, Inc. (a) (c)		952		24,390
Sinclair Broadcast Group, Inc. (c)		3,201		26,280
Six Flags, Inc. (a) (c)		5,004		10,158
Skechers U.S.A., Inc. (a)		1,348		26,299
Smith & Wesson Holding Corp. (a) (c)		2,051		12,511
Sohu.com, Inc. (a) (c)		1,815		98,954
Sonic Automotive, Inc. (c)		2,117		40,985
Sonic Corp. (a) (c)		4,387		96,075
Source Interlink Companies, Inc. (a) (c)		2,394		6,895
Spanish Broadcasting System (a) (c)		3,131		5,792
Spectrum Brands, Inc. (a) (c)		2,594		13,826
Speedway Motorsports, Inc. (c)		1,075		33,411
Spherion Corp. (a) (c)		4,044		29,440
Stage Stores, Inc. (c)		3,064		45,347
Stamps.com, Inc. (a)		1,311		15,968
Standard Parking Corp. (a)		332		16,099
The Steak n Shake Co. (a) (c)		1,979		21,571
Stein Mart, Inc. (c)		1,842		8,731
Steiner Leisure Ltd. (a) (c)		1,123		49,592
Steinway Musical Instruments		492		13,564

	SHARES		VALUE
Consumer Discretionary - 16.2% (Continued)
Steven Madden Ltd. (a)		1,462	$	29,240
Stewart Enterprises, Inc. (c)		7,393		65,798
Strayer Education, Inc.		1,007		171,774
Sturm Ruger & Co, Inc. (a) (c)		1,492		12,354
Sun-times Media Group, Inc. (a) (c)		4,879		10,734
Syms Corp. (c)		458		6,916
Systemax, Inc. (c)		647		13,147
Take-Two Interactive Software, Inc. (a) (c)		5,028		92,767
The Talbots, Inc. (c)		1,581		18,687
TeleTech Holdings, Inc. (a)		2,781		59,152
Tempur-Pedic International, Inc. (c)		4,887		126,915
Tetra Tech, Inc. (a) (c)		4,034		86,731
Texas Roadhouse, Inc. (a) (c)		3,663		40,513
THQ, Inc. (a) (c)		4,484		126,404
Timberland Co. (a) (c)		3,135		56,681
Tivo, Inc. (a) (c)		5,968		49,773
Town Sports International Holdings, Inc. (a) (c)		1,071		10,239
Travelzoo, Inc. (a) (c)		191		2,613
Triarc Companies (c)		4,328		37,913
True Religion Apparel, Inc. (a) (c)		926		19,770
Trueblue, Inc. (a) (c)		3,067		44,410
Trump Entertainment Resorts, Inc. (a) (c)		2,176		9,357
Tuesday Morning Corp. (c)		2,106		10,677
Tupperware Corp.		4,262		140,774
Tween Brands, Inc. (a) (c)		2,154		57,038
Ulta Salon Cosmetics & Frag Inc Com (a) (c)		875		15,006
Under Armour, Inc. (a) (c)		1,460		63,758
Unifirst Corp.		938		35,644
United Natural Foods, Inc. (a) (c)		2,965		94,050
United Online, Inc. (c)		4,513		53,344
United Stationers, Inc. (a) (c)		1,652		76,339
Universal Electronics, Inc. (a) (c)		970		32,437
Universal Technical Institute, Inc. (a) (c)		1,612		27,404
USANA Health Sciences, Inc. (a) (c)		658		24,399
Vail Resorts, Inc. (a) (c)		2,127		114,454
Valassis Communications, Inc. (a) (c)		3,359		39,267
Valueclick, Inc. (a) (c)		6,736		147,518
Valuevision Media, Inc. (a) (c)		2,142		13,473
Viad Corp. (c)		1,560		49,265
VistaPrint Limited (a) (c)		2,887		123,708
Volcom, Inc. (a) (c)		921		20,290
Volt Information Sciences, Inc. (a)		834		15,229
Warnaco Group, Inc. (a)		3,303		114,944
Waste Connections, Inc. (a)		4,695		145,075
Waste Industries USA, Inc. (c)		500		18,150
Waste Services, Inc. (a) (c)		1,296		11,107
Watson Wyatt & Co. Holdings		2,976		138,116
West Marine, Inc. (a) (c)		960		8,621
Westwood One, Inc. (c)		4,938		9,827
Wet Seal, Inc. (a) (c)		5,484		12,778
Weyco Group, Inc. (c)		465		12,788
WMS Industries, Inc. (a) (c)		2,845		104,241
Wolverine World Wide, Inc.		3,523		86,384
World Fuel Services Corp.		1,931		56,057
World Wrestling Entertainment, Inc.		1,504		22,199
Zale Corp. (a) (c)		3,366		54,058
Zumiez, Inc. (a) (c)		1,013		24,677
				14,920,029

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 Staples - 2.1%
Alliance One International, Inc. (a) (c)		6,674	$	27,163
American Dairy, Inc. (a) (c)		428		5,543
Arden Group, Inc. (c)		73		11,292
Boston Beer Co, Inc. (a) (c)		659		24,811
Cal-Maine Foods, Inc. (c)		833		22,100
Casey’s General Stores, Inc. (c)		3,539		104,790
Chiquita Brands International, Inc. (a) (c)		2,957		54,379
Coca-Cola Bottling Co. Consolidated		327		19,254
Farmer Bros Co. (c)		470		10,805
Flowers Foods, Inc.		5,448		127,538
Fresh Del Monte Produce, Inc. (c)		1,865		62,627
Great Atlantic & Pacific Tea Co. (a) (c)		1,627		50,974
Green Mountain Coffee Roasters, Inc. (a) (c)		1,008		41,026
Hain Celestial Group, Inc. (a) (c)		2,618		83,776
Imperial Sugar Co. (c)		736		13,815
Ingles Markets, Inc. (c)		827		20,998
J&J Snack Foods Corp.		921		28,809
Jones Soda Co. (a) (c)		1,777		13,221
Lance, Inc.		2,128		43,454
Longs Drug Stores Corp.		2,235		105,045
M&F Worldwide Corp. (a)		708		38,126
Maui Land & Pineapple Co, Inc. (a) (c)		249		7,248
Nash Finch Co. (c)		937		33,057
National Beverage Corp. (c)		658		5,290
Peet’s Coffee & Tea, Inc. (a) (c)		971		28,227
Performance Food Group Co. (a) (c)		2,428		65,240
Pilgrim’s Pride Corp. (c)		2,843		82,305
Ralcorp Holdings, Inc. (a)		1,863		113,252
Reddy Ice Holdings, Inc.		1,172		29,663
Ruddick Corp.		2,795		96,903
Sanderson Farms, Inc. (c)		1,193		40,300
Schweitzer-Mauduit International, Inc. (c)		1,085		28,112
Seaboard Corp.		23		33,810
Sensient Technologies Corp. (c)		3,257		92,108
Spartan Stores, Inc. (c)		1,479		33,795
Synutra International, Inc. (a) (c)		275		8,305
Tiens Biotech Group USA, Inc. (a) (c)		230		538
Tootsie Roll Industries, Inc. (c)		2,573		70,552
TreeHouse Foods, Inc. (a) (c)		2,184		50,210
Universal Corp. (c)		1,808		92,606
Vector Group Ltd. (c)		2,023		40,581
Village Super Market, Inc. - Class A		214		10,890
Weis Markets, Inc. (c)		621		24,803
Winn Dixie Stores, Inc. (a) (c)		2,266		38,227
				1,935,568
Energy - 5.5%
Allis-Chalmers Energy, Inc. (a) (c)		1,898		27,996
Alon USA Energy, Inc. (c)		803		21,826
Alpha Natural Resources, Inc. (a) (c)		4,341		140,996
Apco Argentina Inc Cayman Is (c)		600		16,512
Approach Resources, Inc. (a)		580		7,459
Arena Resources, Inc. (a) (c)		1,652		68,905
Atlas America, Inc.		1,491		88,237
ATP Oil & Gas Corp. (a) (c)		1,417		71,615
Atwood Oceanics, Inc. (a) (c)		1,897		190,155
Aventine Renewable Energy Holdings, Inc. (a) (c)		2,126		27,128
Basic Energy Services, Inc. (a) (c)		2,687		58,980

	SHARES		VALUE
Energy - 5.5% (Continued)
Berry Petroleum Co. - Class A (c)		2,484	$	110,414
Bill Barrett Corp. (a) (c)		2,000		83,740
Bois D’Arc Energy, Inc. (a) (c)		1,130		22,431
BPZ Energy, Inc. (a) (c)		2,998		33,518
Brigham Exploration Co. (a) (c)		3,195		24,026
Bronco Drilling Company, Inc. (a) (c)		1,713		25,438
Cal Dive International, Inc. (a) (c)		2,893		38,303
Callon Petroleum Co. (a) (c)		1,427		23,474
CARBO Ceramics, Inc. (c)		1,409		52,415
Carrizo Oil & Gas, Inc. (a) (c)		1,558		85,301
Clayton Williams Energy, Inc. (a) (c)		371		11,560
Clean Energy Fuels Corp. (a) (c)		659		9,977
Complete Production Services, Inc. (a) (c)		2,819		50,657
Comstock Resources, Inc. (a)		3,017		102,578
Concho Resources, Inc. (a)		1,545		31,842
Contango Oil & Gas Company (a) (c)		874		44,478
Crosstex Energy, Inc. (c)		2,228		82,971
CVR Energy, Inc. (a) (c)		1,340		33,420
Dawson Geophysical Co. (a) (c)		490		35,015
Delek US Holdings, Inc. (c)		670		13,554
Delta Petroleum Corp. (a) (c)		4,509		84,995
Dril-Quip, Inc. (a) (c)		1,767		98,351
Edge Petroleum Corp. (a) (c)		1,883		11,166
Encore Acquisition Co. (a) (c)		3,708		123,736
Energy Partners Ltd. (a) (c)		2,065		24,388
Enernoc, Inc. (a) (c)		250		12,275
Evergreen Energy, Inc. (a) (c)		4,986		11,119
Evergreen Solar, Inc. (a) (c)		6,200		107,074
EXCO Resources, Inc. (a) (c)		3,655		56,579
Exterran Holdings, Inc. (a) (c)		4,118		336,852
Flotek Inds Inc Del (a) (c)		1,206		43,464
FuelCell Energy, Inc. (a) (c)		3,737		37,071
FX Energy, Inc. (a) (c)		2,332		13,246
GeoGlobal Resources, Inc. (a) (c)		2,105		10,420
Geokinetics, Inc. (a) (c)		451		8,772
GeoMet, Inc. (a) (c)		692		3,598
GMX Resources, Inc. (a) (c)		523		16,882
Goodrich Petroleum Corp. (a) (c)		1,003		22,688
Grey Wolf, Inc. (a) (c)		12,320		65,666
Gulf Island Fabrication, Inc.		808		25,622
Gulfport Energy Corp. (a) (c)		907		16,562
Harvest Natural Resources, Inc. (a) (c)		2,612		32,650
Hercules Offshore, Inc. (a) (c)		5,559		132,193
Hornbeck Offshore Services, Inc. (a) (c)		1,494		67,155
International Coal Group, Inc. (a) (c)		7,981		42,778
Lufkin Industries, Inc. (c)		993		56,889
Mariner Energy, Inc. (a) (c)		5,749		131,537
Markwest Hydrocarbon, Inc. (c)		438		27,441
Matrix Service Co. (a) (c)		1,617		35,283
McMoRan Exploration Co. (a) (c)		1,718		22,489
Meridian Resource Corp. (a) (c)		6,107		11,054
NATCO Group, Inc. (a) (c)		1,027		55,612
Newpark Resources (a) (c)		6,289		34,275
Nova Biosource Fuels, Inc. (a) (c)		1,969		5,710
Oil States International, Inc. (a) (c)		3,235		110,378
Oilsands Quest, Inc. (a) (c)		7,040		28,723
Ormat Technologies, Inc. (c)		904		49,729
Pacific Ethanol, Inc. (a) (c)		1,930		15,845

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 - 5.5% (Continued)
Parallel Petroleum Corp. (a) (c)		2,633	$	46,420
Parker Drilling Co. (a) (c)		7,597		57,357
Penn Virginia Corp.		2,620		114,311
Petrohawk Energy Corp. (a) (c)		11,241		194,582
Petroleum Development Corp. (a) (c)		1,034		61,140
Petroquest Energy, Inc. (a)		2,877		41,141
Pioneer Drilling Co. (a) (c)		2,906		34,523
Rentech, Inc. (a) (c)		9,709		17,573
Resource America, Inc. (c)		1,106		16,225
Rex Energy Corporation (a) (c)		644		7,683
Rosetta Resources, Inc. (a) (c)		3,558		70,555
RPC, Inc. (c)		2,247		26,312
Stone Energy Corp. (a) (c)		1,917		89,926
Sulphco, Inc. (a) (c)		2,450		12,789
Superior Offshore International, Inc. (a) (c)		673		3,378
Superior Well Services, Inc. (a) (c)		911		19,331
Swift Energy Co. (a) (c)		2,049		90,218
T-3 Energy Services, Inc. (a)		93		4,372
Toreador Resources Corp. (a) (c)		926		6,473
Trico Marine Service, Inc. (a) (c)		833		30,838
TXCO Resources, Inc. (a) (c)		2,051		24,735
Union Drilling, Inc. (a) (c)		942		14,855
US Bioenergy Corp. (a) (c)		797		9,333
Vaalco Energy, Inc. (a) (c)		4,047		18,819
Venoco, Inc. (a)		827		16,482
VeraSun Energy Corp. (a) (c)		2,151		32,867
Verenium Corporation (a) (c)		2,141		10,684
Warren Resources, Inc. (a) (c)		3,751		53,002
W-H Energy Services, Inc. (a)		2,072		116,467
Whiting Petroleum Corp. (a) (c)		2,598		149,801
Willbros Group, Inc. (a) (c)		2,484		95,112
				5,112,492
Financial - 19.1%
1st Source Corp. (c)		894		15,475
Abington Bancorp, Inc. (c)		726		6,824
Acadia Realty Trust (c)		2,232		57,162
Advance America Cash Advance Centers, Inc. (c)		4,748		48,240
Advanta Corp. - Class B (c)		2,447		19,747
Advent Software, Inc. (a) (c)		1,429		77,309
Agree Realty Corp. (c)		541		16,284
Alabama National Bancorporation		1,159		90,182
Alesco Financial, Inc. (c)		3,628		11,900
Alexander’s, Inc. (a) (c)		133		46,982
Alexandria Real Estate Equities, Inc. (c)		2,131		216,659
Alfa Corp. (c)		2,286		49,538
Amcore Financial, Inc. (c)		1,537		34,890
American Campus Communities, Inc.		1,609		43,202
American Equity Investment Life Holding Co. (c)		3,911		32,422
American Financial Realty Trust (c)		9,109		73,054
American Physicians Capital, Inc. (c)		685		28,400
AmericanWest Bancorp (c)		793		13,981
Ameris Bancorp (c)		911		15,350
Amerisafe, Inc. (a) (c)		1,236		19,170
Ampal American Israel Corp. (a) (c)		1,162		8,587
Amtrust Financial Services, Inc.		1,798		24,758
Anchor Bancorp Wisconsin, Inc. (c)		1,473		34,645
Anthracite Capital, Inc. (c)		4,014		29,061

	SHARES		VALUE
Financial - 19.1% (Continued)
Anworth Mortgage Asset Corp. (c)		3,187	$	26,325
Apollo Investment Corp. (c)		8,056		137,355
Arbor Realty Trust, Inc. (c)		801		12,904
Ares Capital Corp. (c)		4,841		70,824
Argo Group International Holdings Ltd (a) (c)		1,820		76,677
Ashford Hospitality Trust, Inc. (c)		7,176		51,595
Aspen Insurance Holdings Ltd		5,768		166,349
Asset Acceptance Capital Corp. (c)		1,088		11,326
Associated Estates Realty Corp. (c)		1,037		9,789
Assured Guaranty Ltd		4,472		118,687
Asta Funding, Inc. (c)		788		20,835
Baldwin & Lyons, Inc. (c)		544		14,938
Bancfirst Corp. (c)		434		18,597
Banco Latinoamericano de Exportaciones SA (c)		1,834		29,913
The Bancorp, Inc. (a) (c)		744		10,014
Bank Mutual Corp.		4,280		45,240
Bank of the Ozarks, Inc. (c)		831		21,772
BankAtlantic Bancorp, Inc. (c)		3,316		13,596
BankFinancial Corp. (c)		1,720		27,210
Bankrate, Inc. (a) (c)		698		33,567
BankUnited Financial Corp. (c)		2,199		15,173
Banner Corp. (c)		854		24,535
Beneficial Mutual Bancorp Inc Com (a) (c)		2,444		23,756
Berkshire Hills Bancorp, Inc. (c)		576		14,976
BioMed Realty Trust, Inc.		4,585		106,234
Blackrock Kelso Capital Corp Com (c)		668		10,207
Boston Private Financial Holdings, Inc. (c)		2,475		67,023
Brookline Bancorp, Inc. (c)		4,330		43,993
BRT Realty Trust (c)		463		7,084
Calamos Asset Management, Inc. (c)		1,628		48,482
Capital City Bank Group, Inc. (c)		875		24,692
Capital Corp of the West (c)		634		12,319
Capital Southwest Corp. (c)		153		18,115
Capital Trust, Inc. - Class A (c)		748		22,926
Capitol Bancorp Ltd. (c)		942		18,953
Caplease, Inc. (c)		2,331		19,627
Cascade Bancorp (c)		1,481		20,616
Cash America International, Inc.		2,080		67,184
Cass Information Systems, Inc. (c)		415		13,865
Castlepoint Holdings Ltd (c)		522		6,264
Cathay General Bancorp (c)		3,621		95,920
CBRE Realty Finance, Inc. (c)		1,922		10,263
Cedar Shopping Centers, Inc. (c)		3,024		30,936
Centennial Bank Holdings Inc. (a) (c)		4,153		24,004
Centerline Holdings Co.		3,656		27,859
Center Financial Corp. (c)		815		10,041
Central Pacific Financial Corp. (c)		2,143		39,560
Chemical Financial Corp. (c)		1,761		41,894
Chimera Investment Corp. (a) (c)		2,230		39,872
Chittenden Corp.		3,289		117,154
Citizens Banking Corp. (c)		5,298		76,874
Citizens, Inc. (a) (c)		2,245		12,415
City Bank (c)		867		19,438
City Holding Co.		1,190		40,270
Clayton Holdings, Inc. (a) (c)		561		2,900
Clifton Savings Bancorp, Inc. (c)		937		9,183
CNA Surety Corp. (a)		1,124		22,244
CoBiz, Inc. (c)		1,091		16,223

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 - 19.1% (Continued)
Cohen & Steers, Inc. (c)		963	$	28,861
Columbia Banking System, Inc.		1,126		33,476
Commerce Group, Inc. (c)		3,530		127,009
Community Bancorp (a) (c)		603		10,474
Community Bank System, Inc. (c)		2,101		41,747
Community Trust Bancorp, Inc.		1,057		29,099
CompuCredit Corp. (a) (c)		1,455		14,521
Corporate Office Properties Trust		2,573		81,050
Corus Bankshares, Inc. (c)		2,745		29,289
Cousins Properties, Inc. (c)		2,691		59,471
Cowen Group, Inc. (a) (c)		1,054		10,024
Crawford & Co. (a) (c)		1,640		6,806
Credit Acceptance Corp. (a) (c)		635		13,125
Crystal River Capital, Inc. (c)		1,647		23,783
CVB Financial Corp. (c)		4,715		48,753
Cybersource Corp. (a) (c)		4,365		77,566
Darwin Professional Underwriters, Inc. (a) (c)		340		8,218
Dct Industrial Trust, Inc. (c)		11,659		108,545
Deerfield Capital Corp. (c)		3,480		27,840
Delphi Financial Group (c)		2,909		102,630
Deluxe Corp.		3,606		118,601
DiamondRock Hospitality Co. (c)		6,103		91,423
Digital Realty Trust, Inc. (c)		3,474		133,297
Dime Community Bancshares (c)		1,727		22,054
Dollar Financial Corp. (a) (c)		863		26,485
Donegal Group, Inc. (c)		916		15,728
Downey Financial Corp. (c)		1,478		45,981
Duff & Phelps Corp New (a)		631		12,418
Eastgroup Properties (c)		1,660		69,471
Education Realty Trust, Inc. (c)		1,856		20,861
eHealth, Inc. (a) (c)		368		11,816
Electro Rent Corp. (c)		1,281		19,023
EMC INS Group, Inc. (c)		416		9,847
Employers Holdings, Inc. (c)		3,930		65,670
Encore Capital Group, Inc. (a) (c)		1,065		10,309
Enstar Group Limited (c)		468		57,293
Enterprise Financial Services Corp. (c)		632		15,048
Entertainment Properties Trust (c)		1,859		87,373
Epoch Holding Corp. (c)		580		8,700
Equity Lifestyle Properties, Inc.		1,364		62,294
Equity One, Inc. (c)		2,680		61,720
eSpeed, Inc. - Class A (a) (c)		1,440		16,272
Euronet Worldwide, Inc. (a) (c)		3,173		95,190
Evercore Partners, Inc. (c)		577		12,434
ExlService Holdings, Inc. (a) (c)		1,481		34,181
Extra Space Storage, Inc. (c)		4,045		57,803
FBL Financial Group, Inc. (c)		955		32,976
FBR Capital Markets Corp. (a) (c)		2,085		19,974
Fcstone Group, Inc. (a)		589		27,112
Federal Agricultural Mortgage Corp. (c)		779		20,503
FelCor Lodging Trust, Inc.		4,276		66,663
Financial Federal Corp. (c)		1,902		42,396
First Acceptance Corp. (a) (c)		1,175		4,958
First Bancorp Puerto Rico (c)		4,931		35,947
First Bancorp/Troy NC (c)		834		15,754
First Busey Corp. (c)		1,779		35,331
First Cash Financial Services, Inc. (a) (c)		1,960		28,773
First Charter Corp. (c)		2,411		71,992

	SHARES		VALUE
Financial - 19.1% (Continued)
First Commonwealth Financial Corp. (c)		4,963	$	52,856
First Community Bancorp/CA (c)		1,618		66,726
First Community Bancshares, Inc/VA (c)		669		21,334
First Financial Bancorp (c)		2,358		26,881
First Financial Bankshares, Inc. (c)		1,459		54,931
First Financial Corp/IN (c)		935		26,498
First Financial Holdings, Inc. (c)		845		23,170
First Indiana Corp.		896		28,672
First Industrial Realty Trust, Inc. (c)		3,143		108,748
First Merchants Corp. (c)		1,296		28,305
First Mercury Financial Corp. (a)		737		17,983
First Midwest Bancorp, Inc/IL (c)		3,505		107,253
First Niagara Financial Group, Inc. (c)		7,117		85,689
First Place Financial Corp/OH (c)		1,170		16,368
First Potomac Realty Trust (c)		1,686		29,151
First Regional Bancorp (a) (c)		544		10,276
First South Bancorp, Inc. (c)		548		12,160
First State Bancorp. (c)		1,430		19,877
FirstFed Financial Corp. (a) (c)		1,167		41,802
FirstMerit Corp. (c)		5,605		112,156
Flagstar Bancorp, Inc. (c)		2,853		19,885
Flagstone Reinsurance Holdings Lt (c)		905		12,579
Flushing Financial Corp. (c)		1,344		21,571
FNB Corp/Hermitage PA (c)		4,245		62,401
FPIC Insurance Group, Inc. (a) (c)		700		30,086
Franklin Bank Corp/Houston TX (a) (c)		1,646		7,094
Franklin Street Properties Corp. (c)		4,104		60,739
Fremont General Corp. (c)		4,616		16,156
Friedman Billings Ramsey Group, Inc. (c)		10,320		32,405
Frontier Financial Corp. (c)		2,796		51,922
Gamco Investors, Inc. (c)		394		27,265
Getty Realty Corp. (c)		1,233		32,896
GFI Group, Inc. (a) (c)		1,064		101,846
Glacier Bancorp, Inc. (c)		3,669		68,757
Gladstone Capital Corp. (c)		865		14,705
Glimcher Realty Trust (c)		2,575		36,797
Global Cash Access, Inc. (a) (c)		2,914		17,659
GMH Communities Trust		2,789		15,395
Gramercy Capital Corp. (c)		1,313		31,919
Great Southern Bancorp, Inc. (c)		702		15,416
Greene County Bancshares, Inc. (c)		607		11,654
Greenhill & Co, Inc. (c)		1,238		82,302
Greenlight Capital RE Ltd (a) (c)		605		12,578
H&E Equipment Services, Inc. (a) (c)		1,171		22,108
Hallmark Financial Services, Inc. (a) (c)		304		4,821
Hancock Holding Co. (c)		1,900		72,580
Hanmi Financial Corp. (c)		2,857		24,627
Harleysville Group, Inc.		965		34,142
Harleysville National Corp. (c)		2,031		29,592
Healthcare Realty Trust, Inc. (c)		3,359		85,285
Heartland Financial USA, Inc. (c)		1,017		18,886
Heartland Payment Systems, Inc. (c)		1,030		27,604
Heckmann Corp. (a)		3,594		26,416
Hercules Tech Growth Cap, Inc. (c)		1,523		18,916
Heritage Commerce Corp. (c)		834		15,337
Hersha Hospitality Trust		2,220		21,090
Highwoods Properties, Inc. (c)		3,801		111,673
Hilb Rogal & Hobbs Co.		2,543		103,170

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 - 19.1% (Continued)
Home Bancshares, Inc. (c)		777	$	16,294
Home Properties, Inc. (c)		2,195		98,446
Horace Mann Educators Corp.		3,021		57,218
Horizon Financial Corp. (c)		830		14,475
Huron Consulting Group, Inc. (a)		1,222		98,530
Hypercom Corp. (a) (c)		3,775		18,800
IBERIABANK Corp. (c)		652		30,481
IMPAC Mortgage Holdings, Inc. (c)		5,354		2,998
Imperial Cap Bancorp, Inc.		391		7,155
Independence Holding Co. (c)		354		4,478
Independent Bank Corp. Massachusetts (c)		1,059		28,826
Independent Bank Corp. Michigan (c)		1,611		15,305
Infinity Property & Casualty Corp. (c)		1,452		52,461
Inland Real Estate Corp. (c)		3,832		54,261
Integra Bank Corp. (c)		1,172		16,537
Interactive Brokers Group, Inc. (a) (c)		2,655		85,810
Interactive Data Corp.		2,521		83,218
International Bancshares Corp. (c)		3,598		75,342
INVESTools, Inc. (a) (c)		3,190		56,591
Investors Bancorp, Inc. (a) (c)		3,733		52,785
Investors Real Estate Trust (c)		3,280		29,422
IPC Holdings Ltd (c)		4,183		120,763
Irwin Financial Corp. (c)		1,423		10,459
Jack Henry & Associates, Inc. (c)		5,203		126,641
JER Investors Trust, Inc. (c)		1,804		19,429
Kansas City Life Insurance Co. (c)		281		12,249
Kayne Anderson Energy Dev Co. (c)		660		15,121
KBW, Inc. (a) (c)		1,935		49,517
Kearny Financial Corp. (c)		1,535		18,282
K-Fed Bancorp (c)		327		3,299
Kite Realty Group Trust		1,384		21,134
KNBT Bancorp, Inc.		2,036		31,395
Knight Capital Group, Inc. (a)		7,334		105,610
Kohlberg Capital Corp.		935		11,220
LaBranche & Co, Inc. (a)		3,729		18,794
Ladenburg Thalman Financial Services, Inc. (a) (c)		6,312		13,381
Lakeland Bancorp, Inc. (c)		1,403		16,261
Lakeland Financial Corp. (c)		848		17,723
LandAmerica Financial Group, Inc. (c)		1,130		37,799
LaSalle Hotel Properties (c)		2,805		89,480
Lexington Corporate Properties Trust (c)		4,360		63,394
LTC Properties, Inc.		1,643		41,157
Luminent Mortgage Capital, Inc. (c)		3,347		2,611
Macatawa Bank Corp. (c)		1,071		9,200
Maguire Properties, Inc. (c)		2,661		78,420
MainSource Financial Group, Inc. (c)		1,327		20,648
MarketAxess Holdings, Inc. (a) (c)		2,270		29,124
Max RE Capital Ltd Hamilton (c)		3,984		111,512
MB Financial Corp. (c)		2,408		74,239
MCG Capital Corp. (c)		4,033		46,742
Mcgrath Rentcorp (c)		1,542		39,707
Meadowbrook Insurance Group, Inc. (a)		1,771		16,665
Medical Properties Trust, Inc. (c)		2,816		28,695
MFA Mortgage Investments, Inc. (c)		7,088		65,564
Mid-America Apartment Communities, Inc. (c)		1,659		70,922
The Midland Co.		780		50,458
Midwest Banc Holdings, Inc. (c)		1,334		16,568
Mission West Properties (c)		1,300		12,363
Montpelier RE Holdings Ltd. (c)		7,275		123,748

	SHARES		VALUE
Financial - 19.1% (Continued)
Morningstar, Inc. (a) (c)		987	$	76,739
Move, Inc. (a) (c)		7,040		17,248
MVC Capital, Inc. (c)		1,198		19,336
Nara Bancorp, Inc. (c)		1,491		17,400
NASB Financial, Inc. (c)		278		7,334
National Financial Partners Corp. (c)		2,628		119,863
National Health Investors, Inc.		1,655		46,175
National Interstate Corp. (c)		350		11,585
National Penn Bancshares, Inc. (c)		3,482		52,717
National Retail Properties, Inc. (c)		4,562		106,660
National Western Life Insurance Co.		124		25,714
Nationwide Health Properties, Inc. (c)		5,939		186,306
Navigators Group, Inc. (a) (c)		917		59,605
NBT Bancorp, Inc. (c)		2,419		55,202
Nelnet, Inc. (c)		1,160		14,744	��
NewAlliance Bancshares, Inc. (c)		8,002		92,183
Newcastle Investment Corp. (c)		2,738		35,484
Newstar Financial, Inc. (a) (c)		957		7,924
Nexcen Brands, Inc. (a) (c)		2,815		13,625
NGP Capital Resources Co. (c)		1,228		19,194
Northfield Bancorp Inc New (a) (c)		1,349		14,596
NorthStar Realty Finance Corp. (c)		4,123		36,777
Northwest Bancorp, Inc. (c)		1,312		34,860
Novastar Financial, Inc. (a) (c)		649		1,876
NYMAGIC, Inc. (c)		377		8,720
Ocwen Financial Corp. (a) (c)		2,405		13,324
Odyssey RE Holdings Corp. (c)		1,865		68,464
Old National Bancorp (c)		4,718		70,581
Old Second Bancorp, Inc. (c)		953		25,531
Omega Financial Corp. (c)		885		25,895
Omega Healthcare Investors, Inc. (c)		4,695		75,355
Online Resources Corp. (a) (c)		1,582		18,857
optionsXpress Holdings, Inc. (c)		2,884		97,537
Oriental Financial Group (c)		1,477		19,807
Oritani Financial Corp. (a) (c)		844		10,381
Pacific Capital Bancorp (c)		3,282		66,067
Park National Corp. (c)		835		53,857
Parkway Properties, Inc. (c)		1,065		39,384
Patriot Capital Funding, Inc. (c)		1,207		12,179
Pennantpark Investment Corp.		1,313		13,156
Pennsylvania Real Estate Investment Trust (c)		2,113		62,714
Penson Worldwide, Inc. (a) (c)		958		13,747
Peoples Bancorp Inc. (c)		707		17,597
PFF Bancorp, Inc. (c)		1,721		20,721
The Phoenix Cos., Inc. (c)		7,917		93,975
Pico Holdings, Inc. (a) (c)		1,010		33,956
Pinnacle Financial Partners, Inc. (a) (c)		1,078		27,403
Piper Jaffray Companies, Inc. (a) (c)		1,305		60,448
Platinum Underwriters Holdings Ltd		3,936		139,964
PMA Capital Corp. (a) (c)		2,270		18,659
Portfolio Recovery Associates, Inc. (c)		1,116		44,272
Post Properties, Inc.		3,015		105,887
Potlatch Corp.		2,714		120,610
Preferred Bank (c)		445		11,579
Presidential Life Corp. (c)		1,508		26,405
Primus Guaranty Ltd (a) (c)		2,960		20,750
PrivateBancorp, Inc. (c)		1,192		38,919
ProAssurance Corp. (a) (c)		2,333		128,128
Prospect Capital Corporation (c)		1,315		17,161

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 - 19.1% (Continued)
Prosperity Bancshares, Inc.		2,448	$	71,947
Provident Bankshares Corp.		2,318		49,582
Provident Financial Services, Inc. (c)		4,542		65,496
Provident New York Bancorp (c)		2,985		38,566
PS Business Parks, Inc.		1,121		58,909
Pzena Investment Mgmt, Inc. (a) (c)		407		4,640
QC Holdings, Inc. (c)		410		4,612
RAIT Investment Trust (c)		4,369		37,661
Ram Holdings Ltd (a) (c)		1,210		5,977
Ramco-Gershenson Properties		1,184		25,302
Realty Income Corp. (c)		6,616		178,764
Redwood Trust, Inc. (c)		1,364		46,703
Renasant Corp. (c)		1,036		22,347
Republic Bancorp Inc./KY (c)		555		9,174
RLI Corp. (c)		1,391		78,995
Rockville Financial, Inc. (c)		616		7,515
Roma Financial Corp. (c)		676		10,606
Royal Bancshares of Pennsylvania (c)		338		3,718
S&T Bancorp, Inc. (c)		1,827		50,498
S1 Corp. (a) (c)		3,654		26,674
Safety Insurance Group, Inc. (c)		1,000		36,620
Sanders Morris Harris Group, Inc. (c)		1,188		12,177
Sandy Spring Bancorp, Inc. (c)		1,041		28,961
Santander BanCorp (c)		295		2,555
Saul Centers, Inc. (c)		735		39,271
SCBT Financial Corp. (c)		640		20,269
Scottish Re Group Limited (a) (c)		4,501		3,263
Seabright Insurance Holdings, Inc. (a) (c)		1,118		16,859
Seacoast Banking Corporation of Florida (c)		967		9,941
Security Bank Corp. (c)		1,074		9,816
Security Capital Assurance (c)		1,562		6,076
Selective Insurance Group		3,640		83,684
Senior Housing Properties Trust		5,489		124,491
Sierra Bancorp (c)		402		10,006
Signature Bank (a) (c)		2,059		69,491
Simmons First National Corp. (c)		1,004		26,606
Smithtown Bancorp, Inc.		1		16
Sotheby’s Holdings		4,476		170,536
The South Financial Group, Inc. (c)		4,887		76,384
Southside Bancshares, Inc. (c)		777		15,897
Southwest Bancorp Inc. (c)		951		17,432
Sovran Self Storage, Inc. (c)		1,414		56,701
State Auto Financial Corp.		1,011		26,589
Sterling Bancorp (c)		1,319		17,991
Sterling Bancshares, Inc. (c)		4,821		53,802
Sterling Financial Corp./PA (c)		1,791		29,408
Sterling Financial Corp./WA (c)		3,423		57,472
Stewart Information Services Corp. (c)		1,208		31,517
Stifel Financial Corp. (a) (c)		835		43,896
Strategic Hotels & Resorts, Inc.		5,143		86,042
Suffolk Bancorp		727		22,326
Sun Bancorp Inc. (a) (c)		1,063		16,774
Sun Communities, Inc. (c)		1,215		25,600
Sunstone Hotel Investors, Inc.		4,071		74,459
Superior Bancorp (a) (c)		2,177		11,690
Susquehanna Bancshares, Inc (c)		5,625		103,725
SVB Financial Group (a) (c)		2,270		114,408
SWS Group, Inc. (c)		1,666		21,108
SY Bancorp, Inc. (c)		867		20,756

	SHARES		VALUE
Financial - 19.1% (Continued)
Tanger Factory Outlet Centers (c)		2,174	$	81,982
Tarragon Corp. (a) (c)		908		1,362
Taylor Capital Group, Inc.		389		7,936
Texas Capital Bancshares, Inc. (a) (c)		1,634		29,821
TheStreet.Com, Inc. (c)		1,289		20,521
Thomas Weisel Partners Group, Inc. (a) (c)		1,424		19,552
Ticc Capital Corp. (c)		1,367		12,617
TierOne Corp.		1,276		28,263
TNS, Inc.		1,693		30,051
Tompkins Trustco, Inc. (c)		466		18,081
Tower Group, Inc. (c)		1,182		39,479
TradeStation Group, Inc. (a) (c)		1,806		25,663
Triad Guaranty, Inc. (a) (c)		750		7,350
Trico Bancshares (c)		928		17,910
Trustco Bank Corp. NY (c)		5,277		52,348
Trustmark Corp. (c)		3,434		87,086
UCBH Holdings, Inc. (c)		6,885		97,492
UMB Financial Corp. (c)		2,222		85,236
Umpqua Holdings Corp. (c)		3,943		60,486
Union Bankshares Corp. (c)		889		18,793
United Amer Indemnity Ltd (a) (c)		1,635		32,569
United Bankshares, Inc. (c)		2,611		73,160
United Community Banks, Inc. (c)		2,379		37,588
United Community Financial Corp. (c)		1,905		10,516
United Fire & Casualty Co. (c)		1,449		42,151
United Security Bancshares/CA (c)		483		7,380
Universal American Financial Corp. (a)		3,286		84,089
Universal Health Realty Income Trust (c)		827		29,309
Univest Corporation of Pennsylvania (c)		808		17,057
Urstadt Biddle Properties, Inc. (c)		1,485		23,018
US Global Investors, Inc. (a) (c)		786		13,095
USB Holding Co., Inc.		830		16,434
U-Store-It Trust		3,306		30,283
Validus Holdings Ltd (a) (c)		1,058		27,487
Value Line, Inc. (c)		71		2,858
ViewPoint Financial Group (c)		764		12,629
Virginia Commerce Bancorp (a) (c)		1,149		13,478
W Holding Co, Inc. (c)		7,665		9,275
Waddell & Reed Financial, Inc.		5,557		200,552
Washington Real Estate Investment Trust (c)		3,161		99,287
Washington Trust Bancorp, Inc. (c)		809		20,411
Wauwatosa Holdings, Inc. (a) (c)		734		9,410
WesBanco, Inc. (c)		1,541		31,745
West Coast Bancorp (c)		1,038		19,203
Westamerica Bancorporation (c)		1,989		88,610
Western Alliance Bancorp (a) (c)		921		17,287
Westfield Financial Inc.		887		8,604
Wilshire Bancorp, Inc. (c)		1,072		8,415
Winthrop Realty Trust (c)		2,745		14,521
Wintrust Financial Corp. (c)		1,596		52,875
World Acceptance Corp. (a) (c)		1,289		34,777
WP Stewart & Co Ltd (c)		1,442		7,369
Wright Express Corp. (a) (c)		2,837		100,685
WSFS Financial Corp.		415		20,833
Zenith National Insurance Corp.		2,596		116,119
				17,613,750

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
Health Care - 12.9%
Abaxis, Inc. (a) (c)		1,411	$	50,598
Abiomed, Inc. (a) (c)		1,643		25,532
Acadia Pharmaceuticals, Inc. (a) (c)		1,703		18,852
Accuray, Inc. (a) (c)		1,106		16,833
Acorda Therapeutics, Inc. (a)		1,408		30,920
Adams Respiratory Therapeutics, Inc. (a) (c)		2,132		127,366
Affymax, Inc. (a)		294		6,574
Affymetrix, Inc. (a) (c)		4,741		109,707
Air Methods Corp. (a) (c)		676		33,577
Akorn, Inc. (a) (c)		3,412		25,044
Albany Molecular Research, Inc. (a) (c)		1,786		25,683
Alexion Pharmaceuticals, Inc. (a) (c)		2,481		186,149
Alexza Pharmaceuticals, Inc. (a) (c)		1,305		10,557
Align Technology, Inc. (a) (c)		3,982		66,420
Alkermes, Inc. (a) (c)		6,793		105,903
Alliance Imaging, Inc. (a) (c)		1,021		9,822
Allos Therapeutics (a) (c)		2,848		17,914
Allscripts Healthcare Solutions, Inc. (a) (c)		3,640		70,689
Alnylam Pharmaceuticals, Inc. (a) (c)		2,601		75,637
Alpharma, Inc. (a) (c)		2,984		60,128
Altus Pharmaceuticals, Inc. (a) (c)		1,405		7,278
Amag Pharmaceuticals, Inc. (a) (c)		935		56,222
Amedisys, Inc. (a) (c)		1,805		87,562
American Dental Partners, Inc. (a) (c)		837		8,395
American Medical Systems Holdings, Inc. (a) (c)		4,904		70,912
American Oriental Bioengineering, Inc. (a) (c)		3,127		34,647
AMERIGROUP Corp. (a)		3,632		132,386
Amicus Therapeutics, Inc. (a) (c)		333		3,580
Amsurg Corp. (a)		2,092		56,610
Analogic Corp. (c)		971		65,756
Angiodynamics, Inc. (a) (c)		1,382		26,313
Animal Health International (a) (c)		815		10,025
Applera Corp - Celera Genomics Group (a) (c)		5,415		85,936
Apria Healthcare Group, Inc. (a)		2,950		63,631
Arena Pharmaceuticals, Inc. (a) (c)		4,263		33,379
Ariad Pharmaceuticals, Inc. (a) (c)		4,590		19,507
ArQule, Inc. (a) (c)		2,150		12,470
Array Biopharma, Inc. (a) (c)		2,750		23,155
Arthrocare Corp. (a) (c)		1,837		88,268
Aspect Medical Systems, Inc. (a) (c)		1,145		16,030
Assisted Living Concepts, Inc. (a) (c)		3,962		29,715
Athenahealth, Inc. (a)		464		16,704
Auxilium Pharmaceuticals, Inc. (a)		1,819		54,552
Beijing Med Pharm Corp. (a) (c)		1,779		19,533
Bentley Pharmaceuticals, Inc. (a) (c)		1,356		20,462
Biodel, Inc. (a) (c)		342		7,945
Bioform Medical, Inc. (a)		743		5,075
BioMarin Pharmaceuticals, Inc. (a)		6,432		227,693
Biomimetic Therapeutics, Inc. (a) (c)		709		12,315
Bionovo, Inc. (a) (c)		2,810		4,805
Bio-Rad Laboratories, Inc. (a) (c)		1,310		135,742
Bio-Reference Labs, Inc. (a) (c)		700		22,876
Bradley Pharmaceuticals, Inc. (a)		1,023		20,153
Bruker BioSciences Corp. (a)		4,284		56,977
Cadence Pharmaceuticals, Inc. (a) (c)		470		6,984
Cantel Medical Corp. (a) (c)		764		11,139
Capital Senior Living Corp. (a) (c)		1,527		15,163
Caraco Pharmaceutical Laboratories Ltd. (a) (c)		655		11,233

	SHARES		VALUE
Health Care - 12.9% (Continued)
Cell Genesys, Inc. (a) (c)		3,898	$	8,965
Centene Corp. (a)		3,029		83,116
Cepheid, Inc. (a) (c)		3,833		101,000
Chattem, Inc. (a) (c)		1,231		92,990
Computer Programs & Systems, Inc. (c)		609		13,849
Conceptus, Inc. (a) (c)		1,601		30,803
Conmed Corp. (a) (c)		1,973		45,596
Corvel Corp. (a) (c)		512		11,775
CryoLife, Inc. (a)		1,524		12,116
Cubist Pharmaceuticals, Inc. (a) (c)		3,817		78,287
Cutera, Inc. (a)		889		13,957
CV Therapeutics, Inc. (a) (c)		4,159		37,639
Cyberonics, Inc. (a) (c)		1,515		19,937
Cynosure, Inc. (a) (c)		505		13,362
Cypress Bioscience, Inc. (a) (c)		2,254		24,862
Cytokinetics, Inc. (a) (c)		2,318		10,964
Cytrx Corp. (a) (c)		5,724		16,256
Datascope Corp. (c)		867		31,559
Dendreon Corp. (a) (c)		5,756		35,802
Discovery Laboratories, Inc. (a) (c)		5,594		12,027
Durect Corp. (a) (c)		4,309		27,707
Eclipsys Corp. (a) (c)		3,175		80,359
Emergency Medical Services Corp. (a) (c)		614		17,978
Emergent Biosolutions, Inc. (a) (c)		330		1,670
Emeritus Corp. (a) (c)		322		8,098
Encysive Pharmaceuticals, Inc. (a) (c)		4,388		3,730
Ensign Group, Inc. (a) (c)		308		4,435
Enzo Biochem, Inc. (a) (c)		1,925		24,524
Enzon Pharmaceuticals, Inc. (a) (c)		3,074		29,295
eResearch Technology, Inc. (a) (c)		3,465		40,956
ev3, Inc. (a) (c)		1,535		19,510
Exelixis, Inc. (a) (c)		6,609		57,036
Genomic Health, Inc. (a) (c)		875		19,810
Genoptix, Inc. (a) (c)		383		11,758
Gentiva Health Services, Inc. (a)		1,890		35,986
Genvec, Inc. (a) (c)		4,336		6,374
Geron Corp. (a) (c)		4,631		26,304
Greatbatch, Inc. (a) (c)		1,533		30,645
GTx, Inc. (a) (c)		990		14,207
Haemonetics Corp./Mass (a)		1,869		117,784
Halozyme Therapeutics, Inc. (a) (c)		4,245		30,182
Hansen Medical, Inc. (a) (c)		413		12,365
Healthcare Services Group (c)		2,876		60,903
HealthExtras, Inc. (a)		1,909		49,787
Healthsouth Corp. (a) (c)		5,210		109,410
Healthspring, Inc. (a)		3,149		59,988
Healthways, Inc. (a) (c)		2,424		141,659
HMS Holdings Corp. (a) (c)		1,387		46,062
Hologic, Inc. (a) (c)		8,219		564,152
Human Genome Sciences, Inc. (a) (c)		9,234		96,403
Hythiam, Inc. (a) (c)		1,842		5,397
ICU Medical, Inc. (a) (c)		1,004		36,154
Idenix Pharmaceuticals, Inc. (a) (c)		1,734		4,682
I-Flow Corp. (a) (c)		1,642		25,911
Illumina, Inc. (a) (c)		3,441		203,914
Immucor, Inc. (a) (c)		4,762		161,860
Immunomedics, Inc. (a) (c)		3,770		8,746
Incyte Corp. (a) (c)		5,885		59,144

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 - 12.9% (Continued)
Indevus Pharmaceuticals, Inc. (a) (c)		3,837	$	26,667
Insulet Corp. (a) (c)		521		12,233
Integra LifeSciences Holdings Corp. (a) (c)		1,338		56,102
InterMune, Inc. (a) (c)		1,827		24,354
Invacare Corp. (c)		2,181		54,961
Inverness Medical Innovations, Inc. (a) (c)		4,553		255,788
Isis Pharmaceuticals, Inc. (a) (c)		5,121		80,656
Javelin Pharmaceuticals, Inc. (a) (c)		2,825		10,565
Jazz Pharmaceuticals, Inc. (a) (c)		401		5,895
Kendle International, Inc. (a) (c)		862		42,169
Kensey Nash Corp. (a)		813		24,325
Keryx Biopharmaceuticals, Inc. (a) (c)		3,034		25,486
Kindred Healthcare, Inc. (a) (c)		2,262		56,505
Kosan Biosciences, Inc. (a) (c)		2,888		10,397
KV Pharmaceutical Co. (a) (c)		2,339		66,755
Landauer, Inc. (c)		608		31,525
LCA-Vision, Inc. (c)		1,458		29,116
LHC Group, Inc. (a) (c)		826		20,633
Lifecell Corp. (a) (c)		2,355		101,524
Ligand Pharmaceuticals, Inc. (c)		5,979		28,879
Luminex Corp. (a) (c)		2,248		36,508
Magellan Health Services, Inc. (a)		2,599		121,191
MannKind Corp. (a) (c)		2,214		17,623
Map Pharmaceuticals, Inc. (a)		398		6,969
Martek Biosciences Corp. (a) (c)		2,255		66,703
Masimo Corp. (a) (c)		918		36,215
Matria Healthcare, Inc. (a) (c)		1,474		35,037
Maxygen, Inc. (a) (c)		2,071		16,630
Medarex, Inc. (a) (c)		8,584		89,445
Medcath Corp. (a) (c)		621		15,252
Medical Action Industries, Inc. (a) (c)		967		20,162
Medicines Co. (a) (c)		3,522		67,482
Medicis Pharmaceutical (c)		3,824		99,309
Medivation, Inc. (a) (c)		1,423		20,491
Mentor Corp. (c)		2,553		99,822
Meridian Bioscience, Inc. (c)		2,215		66,627
Merit Medical Systems, Inc. (a) (c)		1,915		26,619
Metabolix, Inc. (a) (c)		954		22,705
MGI Pharma, Inc. (a)		5,488		222,429
Micrus Endovascular Corp. (a) (c)		985		19,385
Minrad International, Inc. (a) (c)		3,054		9,926
Molecular Insight Pharmaceuticals, Inc. (a) (c)		346		3,135
Molina Healthcare, Inc. (a) (c)		818		31,657
Momenta Pharmaceuticals, Inc. (a) (c)		1,755		12,531
Myriad Genetics, Inc. (a) (c)		2,773		128,723
Nabi Biopharmaceuticals (a) (c)		4,223		15,245
Nanosphere, Inc. (a) (c)		488		6,827
Nastech Pharmaceutical, Inc. (a) (c)		1,783		6,775
National Healthcare Corp. (c)		453		23,420
Natus Medical, Inc. (a) (c)		1,494		28,909
Nektar Therapeutics (a) (c)		6,294		42,233
Neurocrine Biosciences, Inc. (a) (c)		2,648		12,022
Neurogen Corp. (a) (c)		2,097		7,235
Nighthawk Radiology Holdings, Inc. (a) (c)		1,393		29,323
Northstar Neuroscience, Inc. (a) (c)		803		7,468
Novacea, Inc. (a) (c)		419		1,249
Noven Pharmaceuticals, Inc. (a) (c)		1,664		23,096
NuVasive, Inc. (a) (c)		2,324		91,844

	SHARES		VALUE
Health Care - 12.9% (Continued)
Nxstage Medical, Inc. (a) (c)		850	$	12,894
Obagi Medical Products, Inc. (a)		369		6,749
Odyssey HealthCare, Inc. (a) (c)		2,432		26,898
Omnicell, Inc. (a) (c)		1,910		51,436
Omrix Biopharmaceuticals, Inc. (a) (c)		908		31,544
Onyx Pharmaceuticals, Inc. (a)		3,692		205,349
OraSure Technologies, Inc. (a) (c)		3,228		28,697
Orexigen Therapeutics, Inc. (a) (c)		481		6,854
Orthofix International N V (a) (c)		1,094		63,419
OSI Pharmaceuticals, Inc. (a) (c)		3,997		193,894
Osiris Therapeutics, Inc. (a) (c)		229		2,753
Owens & Minor, Inc. (c)		2,818		119,568
Pain Therapeutics, Inc. (a) (c)		2,497		26,468
Palomar Medical Technologies, Inc. (a) (c)		1,166		17,863
Par Pharmaceutical Cos., Inc. (a) (c)		2,461		59,064
Parexel International Corp. (a) (c)		1,908		92,156
Penwest Pharmaceuticals Co. (a) (c)		1,605		9,389
Perrigo Co. (c)		5,457		191,050
PharmaNet Development Group, Inc. (a)		1,275		49,993
Pharmerica Corp. (a) (c)		1,814		25,178
Pharmion Corp. (a) (c)		1,698		106,736
Phase Forward, Inc. (a) (c)		2,383		51,830
Poniard Pharmaceuticals, Inc. (a)		1,535		6,769
Pozen, Inc. (a) (c)		1,763		21,156
Progenics Pharmaceuticals, Inc. (a) (c)		1,566		28,298
PSS World Medical, Inc. (a)		4,746		92,879
Psychiatric Solutions, Inc. (a) (c)		3,721		120,932
Quality Systems, Inc. (c)		1,100		33,539
Quidel Corp. (a) (c)		2,113		41,140
Radiation Therapy Services, Inc. (a) (c)		826		25,532
Regeneration Technologies, Inc. (a) (c)		2,009		17,438
Regeneron Pharmaceuticals, Inc. (a) (c)		4,208		101,623
RehabCare Group, Inc. (a)		1,192		26,892
Res-Care, Inc. (a) (c)		1,552		39,048
Rigel Pharmaceuticals, Inc. (a) (c)		1,750		44,432
Salix Pharmaceuticals Ltd. (a) (c)		3,271		25,775
Santarus, Inc. (a) (c)		3,552		9,768
Savient Pharmaceuticals, Inc. (a) (c)		4,150		95,325
Sciele Pharma, Inc. (a) (c)		2,046		41,841
Seattle Genetics Inc. (a) (c)		2,791		31,817
Sirona Dental Systems, Inc. (a) (c)		1,238		41,448
Sirtris Pharmaceuticals, Inc. (a) (c)		403		5,517
Skilled Healthcare Group, Inc. (a) (c)		1,478		21,623
Somaxon Pharmaceuticals, Inc. (a) (c)		351		1,829
Sonic Innovations, Inc. (a) (c)		1,753		13,533
SonoSite, Inc. (a) (c)		1,092		36,768
Spectranetics Corp. (a)		2,151		32,975
Stereotaxis, Inc. (a) (c)		1,645		20,102
Steris Corp.		4,294		123,839
Sucampo Pharmaceuticals, Inc. (a)		290		5,319
Sun Healthcare Group, Inc. (a) (c)		2,229		38,272
Sunrise Senior Living, Inc. (a) (c)		3,120		95,722
SuperGen, Inc. (a) (c)		3,481		12,706
SurModics, Inc. (a) (c)		1,067		57,906
Symmetry Medical, Inc. (a)		2,460		42,878
Synta Pharmaceuticals Corp. (a) (c)		347		2,325
Telik, Inc. (a) (c)		3,671		12,738
Tercica, Inc. (a) (c)		2,199		14,909
Thoratec Corp. (a) (c)		3,704		67,376

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 - 12.9% (Continued)
Tomotherapy, Inc. (a) (c)		774	$	15,139
Trans1, Inc. (a)		435		7,164
Trubion Pharmaceuticals, Inc. (a) (c)		306		3,060
United Therapeutics Corp. (a) (c)		1,370		133,781
Valeant Pharmaceuticals International (a) (c)		6,516		77,997
Vanda Pharmaceuticals, Inc. (a) (c)		1,750		12,040
Ventana Medical Systems (a)		2,025		176,641
Viropharma, Inc. (a) (c)		4,819		38,263
Virtual Radiologic Corporation Com (a)		297		6,023
Visicu, Inc. (a) (c)		449		5,330
Vital Images, Inc. (a) (c)		1,177		21,268
Vital Signs, Inc. (c)		716		36,602
Vivus, Inc. (a) (c)		3,832		19,850
Volcano Corporation (a) (c)		1,562		19,541
West Pharmaceutical Services, Inc. (c)		2,269		92,099
Wright Medical Group, Inc. (a)		2,404		70,125
Xenoport, Inc. (a) (c)		1,414		79,014
XOMA Ltd (a) (c)		8,709		29,524
Zoll Medical Corp. (a) (c)		1,290		34,469
Zymogenetics, Inc. (a) (c)		2,637		30,774
				11,898,012
Materials & Processing - 9.3%
AAON, Inc. (c)		942		18,670
Abitibibowater, Inc. (a) (c)		3,578		73,743
Acuity Brands, Inc.		2,860		128,700
Aecom Technology Corp Delaware (a) (c)		2,689		76,825
AEP Industries, Inc. (a) (c)		466		14,917
Albany International Corp. (c)		1,877		69,637
Alico, Inc. (c)		267		9,746
AM Castle & Co.		656		17,837
AMCOL International Corp. (c)		1,543		55,594
American Vanguard Corp. (c)		1,186		20,577
Ameron International Corp.		586		54,000
Ampco-Pittsburgh Corp. (c)		468		17,845
Amrep Corp. (c)		109		3,330
Andersons, Inc. (c)		948		42,470
Apex Silver Mines Ltd. (a) (c)		3,834		58,430
Apogee Enterprises, Inc. (c)		1,979		33,861
Aptargroup, Inc. (c)		4,622		189,086
Arch Chemicals, Inc. (c)		1,683		61,850
Avatar Holdings, Inc. (a) (c)		408		17,063
Balchem Corp. (c)		1,223		27,371
Barnes Group, Inc. (c)		3,061		102,207
Beacon Roofing Supply, Inc. (a) (c)		3,079		25,925
Bluegreen Corp. (a) (c)		1,470		10,569
BlueLinx Holdings, Inc. (c)		840		3,301
Brady Corp.		3,163		110,990
Brookfield Homes Corp. (c)		809		12,782
Brush Engineered Materials, Inc. (a) (c)		1,368		50,643
Buckeye Technologies, Inc. (a) (c)		2,648		33,100
Builders FirstSource, Inc. (a) (c)		1,009		7,285
Building Material Holding Corp. (c)		2,034		11,248
Cabot Microelectronics Corp. (a)		1,700		61,047
Cadiz, Inc. (a) (c)		790		16,590
Calgon Carbon Corp. (a) (c)		2,790		44,333
Cambrex Corp.		1,880		15,754
Century Aluminum Co. (a) (c)		1,625		87,653

	SHARES		VALUE
Materials & Processing - 9.3% (Continued)
Ceradyne, Inc. (a)		1,889	$	88,651
CF Industries Holdings, Inc.		3,625		398,968
Chesapeake Corp. (c)		1,333		6,918
China Architectural Engineering, Inc. (a) (c)		342		2,958
CIRCOR International, Inc. (c)		1,125		52,155
Clarcor, Inc. (c)		3,388		128,642
Claymont Steel Holdings, Inc. (a) (c)		603		14,080
Clean Harbors, Inc. (a) (c)		1,102		56,973
Coeur d’Alene Mines Corp. (a) (c)		31,025		153,264
Comfort Systems USA, Inc. (c)		2,831		36,180
Compass Minerals International, Inc. (c)		2,246		92,086
CompX International, Inc.		107		1,564
Consolidated-Tomoka Land Co. (c)		399		25,009
Deltic Timber Corp. (c)		687		35,374
Drew Industries, Inc. (a) (c)		1,301		35,647
Dupont Fabros Technology, Inc. (a) (c)		2,341		45,884
Dycom Industries, Inc. (a) (c)		2,631		70,116
Dynamic Materials Corp. (c)		828		48,769
EMCOR Group, Inc. (a)		4,418		104,397
Encore Wire Corp. (c)		1,634		26,013
Energy Conversion Devices, Inc. (a) (c)		2,744		92,336
EnerSys (a)		1,422		35,493
ENGlobal Corp. (a) (c)		1,133		12,871
Ennis, Inc. (c)		1,791		32,238
Esmark, Inc. (a) (c)		722		10,202
Exide Technologies (a) (c)		4,044		32,352
Ferro Corp.		2,998		62,149
General Moly, Inc. (a) (c)		3,216		37,531
Georgia Gulf Corp. (c)		2,404		15,914
Gibraltar Industries, Inc. (c)		1,702		26,245
Glatfelter (c)		3,123		47,813
Goodman Global, Inc. (a) (c)		2,510		61,595
GrafTech International Ltd. (a)		6,925		122,919
Granite Construction, Inc. (c)		2,434		88,062
Graphic Packaging Corp. (a) (c)		5,319		19,627
Great Lakes Dredge & Dock Corp. (a) (c)		541		4,718
Greif, Inc.		2,318		151,528
Griffon Corp. (a) (c)		2,092		26,045
Grubb & Ellis Co. (a) (c)		1,063		6,814
Haynes International, Inc. (a) (c)		769		53,446
HB Fuller Co. (c)		4,132		92,763
Hecla Mining Co. (a) (c)		8,385		78,400
Hercules, Inc.		7,983		154,471
Hexcel Corp. (a) (c)		6,561		159,301
HFF, Inc. (a) (c)		1,138		8,808
Hilltop Holdings, Inc. (a) (c)		2,985		32,596
Horsehead Holdings Corp. (a) (c)		375		6,364
Innerworkings, Inc. (a) (c)		1,543		26,632
Innophos Holdings, Inc. (c)		1,370		20,386
Innospec, Inc. (c)		1,728		29,652
Insituform Technologies, Inc. (a) (c)		1,909		28,253
Insteel Industries, Inc. (c)		979		11,484
Integrated Electrical Services, Inc. (a) (c)		1,079		20,274
Interface, Inc. (c)		3,356		54,770
Interline Brands, Inc. (a) (c)		1,905		41,739
Kaiser Aluminum Corp. (c)		999		79,401
Kaydon Corp. (c)		1,983		108,153
Koppers Holdings, Inc.		1,164		50,331

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 & Processing - 9.3% (Continued)
Kronos Worldwide, Inc. (c)		194	$	3,385
Landec Corp. (a)		1,451		19,443
Layne Christensen Co. (a)		841		41,386
LB Foster Co. - Class A (a)		665		34,400
LSB Industries, Inc. (a) (c)		975		27,515
LSI Industries, Inc. (c)		1,507		27,427
Medis Technologies Ltd. (a) (c)		1,532		23,639
Mercer International, Inc. (a) (c)		1,856		14,532
Meruelo Maddux Properties, Inc. (a) (c)		3,166		12,664
Metal Management, Inc. (c)		1,831		83,365
MGP Ingredients, Inc. (c)		622		5,859
Michael Baker Corp. (a) (c)		479		19,687
Minerals Technologies, Inc. (c)		1,397		93,529
Mobile Mini, Inc. (a)		2,477		45,924
Mueller Industries, Inc.		2,592		75,142
Mueller Water Products, Inc. - Class A (c)		7,793		74,189
Multi Color Corp. (c)		534		14,669
Myers Industries, Inc. (c)		1,875		27,131
NCI Building Systems, Inc. (a)		1,437		41,371
Neenah Paper, Inc.		1,037		30,229
NewMarket Corp. (c)		1,013		56,414
NL Industries (c)		532		6,081
Northwest Pipe Co. (a) (c)		592		23,171
Nuco2, Inc. (a) (c)		1,090		27,141
Olin Corp. (c)		5,083		98,254
Olympic Steel, Inc. (c)		545		17,282
OM Group, Inc. (a)		2,061		118,590
Perini Corp. (a)		1,760		72,899
PGT, Inc. (a) (c)		683		3,251
PolyOne Corp. (a) (c)		6,509		42,829
Polypore International, Inc. (a) (c)		1,007		17,623
Quadra Realty Trust, Inc. (c)		1,155		9,286
Quanex Corp.		2,443		126,792
RBC Bearings, Inc. (a)		1,438		62,495
Resource Capital Corporation (c)		1,455		13,546
Rock-Tenn Co.		2,370		60,222
Rockwood Holdings, Inc. (a)		2,161		71,788
Rogers Corp. (a) (c)		1,224		53,085
Royal Gold, Inc. (c)		1,366		41,690
RTI International Metals, Inc. (a)		1,601		110,357
Schnitzer Steel Industries, Inc.		1,588		109,778
Schulman A, Inc.		1,987		42,820
Senomyx, Inc. (a) (c)		2,095		15,692
Shengda Tech, Inc. (a) (c)		1,893		27,354
Silgan Holdings, Inc.		1,635		84,922
Simpson Manufacturing Co., Inc. (c)		2,602		69,187
Spartech Corp.		2,252		31,753
The Standard Register Co. (c)		1,196		13,945
Stepan Co. (c)		412		13,402
Stillwater Mining Co. (a) (c)		2,901		28,024
Stratus Properties, Inc. (a) (c)		326		11,064
Superior Essex, Inc. (a) (c)		1,414		33,936
Symyx Technologies, Inc. (a)		2,370		18,202
Tejon Ranch Co. (a) (c)		710		29,004
Terra Industries, Inc. (a) (c)		5,783		276,196
Texas Industries, Inc. (c)		1,883		131,998
Thomas Pptys Group, Inc. (c)		1,563		16,849
Tredegar Corp.		2,398		38,560

	SHARES		VALUE
Materials & Processing - 9.3% (Continued)
Trex Co, Inc. (a) (c)		835	$	7,106
Trimas Corp. (a) (c)		884		9,362
Tronox, Inc. (c)		2,903		25,111
UAP Holding Corp. (c)		3,577		138,072
Universal Forest Products, Inc.		1,123		33,084
Universal Stainless & Alloy (a)		443		15,758
Uranium Resources, Inc. (a) (c)		3,487		43,518
US Concrete, Inc. (a)		2,350		7,825
Us Gold Corporation (a) (c)		2,956		8,750
USEC, Inc. (a) (c)		5,653		50,877
Valhi, Inc. (c)		444		7,077
Valmont Industries, Inc. (c)		1,271		113,272
Watsco, Inc. (c)		1,525		56,059
Wausau Paper Corp. (c)		3,154		28,354
WD-40 Co. (c)		1,180		44,805
Worthington Industries (c)		4,572		81,747
WR Grace & Co. (a) (c)		4,767		124,800
Xerium Technologies, Inc. (c)		1,385		7,202
Zep, Inc. (a)		1,430		19,834
Zoltek Companies, Inc. (a) (c)		1,442		61,819
				8,577,703
Other - 0.6%
Aldabra 2 Acquisition Corp. (a) (c)		2,774		27,019
Alternative Asset Management Corp. (a)		2,774		25,382
Compass Diversified Trust		923		13,753
Energy Infrastructure Acqui Cp (a)		1,461		14,815
GenCorp, Inc. (a) (c)		3,888		45,334
GenTek, Inc. (a) (c)		666		19,494
Hicks Acquisition Co I, Inc. (a)		3,692		33,929
Information Services Group, Inc. (a) (c)		2,261		15,488
Kaman Corp.		1,688		62,135
Lancaster Colony Corp. (c)		1,675		66,497
Marathon Acquisition Corp. (a) (c)		2,483		19,318
NRDC Acquisition Corp. (a)		2,769		25,392
NTR Acquisition Co. (a) (c)		1,703		16,178
Raven Industries, Inc. (c)		1,078		41,384
Triplecrown Acquisition Corp. (a)		3,212		29,358
Walter Industries, Inc. (c)		3,448		123,887
				579,363
Technology - 13.2%
3Com Corp. (a)		27,500		124,300
3D Systems Corp. (a)		1,032		15,934
3par, Inc. (a) (c)		502		6,426
Acacia Research - Acacia Technologies (a)		1,959		17,592
Aci Worldwide, Inc. (a) (c)		2,627		50,018
Acme Packet, Inc. (a) (c)		936		11,784
Actel Corp. (a) (c)		1,819		24,848
Actuate Corp. (a) (c)		3,967		30,824
Adaptec, Inc. (a)		8,034		27,155
ADTRAN, Inc. (c)		3,920		83,810
Advanced Analogic Technologies, Inc. (a) (c)		2,588		29,193
Agilysys, Inc. (c)		2,146		32,448
American Reprographics Co. (a) (c)		1,835		30,241
American Science & Engineering, Inc. (c)		611		34,674
AMIS Holdings, Inc. (a) (c)		4,414		44,228
Amkor Technology, Inc. (a) (c)		7,206		61,467
Anadigics, Inc. (a) (c)		3,315		38,355

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
Technology - 13.2% (Continued)
Anaren, Inc. (a) (c)		1,154	$	19,029
Anixter International, Inc. (a) (c)		2,057		128,089
Ansoft Corp. (a) (c)		1,154		29,831
Ansys, Inc. (a) (c)		5,123		212,400
Applied Micro Circuits Corp. (a) (c)		5,219		45,616
Ariba, Inc. (a) (c)		5,245		58,482
Arrowhead Resh Corp. (a) (c)		2,225		8,410
Art Technology Group, Inc. (a)		7,864		33,972
Aruba Networks, Inc. (a) (c)		529		7,887
AsiaInfo Holdings, Inc. (a) (c)		2,127		23,397
Aspen Technology, Inc. (a) (c)		5,845		94,806
Atheros Communications, Inc. (a) (c)		3,629		110,830
Authentec, Inc. (a) (c)		520		7,556
Avanex Corp. (a) (c)		11,551		11,551
Avid Technology, Inc. (a) (c)		2,967		84,085
Avocent Corp. (a)		3,598		83,869
BearingPoint, Inc. (a) (c)		13,100		37,073
Bel Fuse, Inc. (c)		716		20,957
Benchmark Electronics, Inc. (a)		4,954		87,834
Bigband Networks, Inc. (a) (c)		823		4,230
Black Box Corp. (c)		1,173		42,427
Blackbaud, Inc. (c)		3,069		86,055
Blackboard, Inc. (a) (c)		1,948		78,407
Bladelogic, Inc. (a)		389		11,503
Blue Coat Systems, Inc. (a) (c)		1,942		63,834
Borland Software Corp. (a) (c)		5,476		16,483
Bottomline Technologies, Inc. (a) (c)		1,441		20,174
CACI International, Inc. - Class A (a) (c)		2,146		96,076
Cavium Networks, Inc. (a) (c)		444		10,221
Cbeyond Communications, Inc. (a) (c)		1,156		45,072
Checkpoint Systems, Inc. (a)		2,756		71,601
Chordiant Software, Inc. (a) (c)		2,234		19,101
Ciber, Inc. (a) (c)		3,839		23,456
Cirrus Logic, Inc. (a) (c)		6,144		32,440
CMGI, Inc. (a) (c)		3,271		42,817
Cogent Communications Group, Inc. (a) (c)		3,265		77,413
Cogent Inc. (a) (c)		3,041		33,907
Coleman Cable, Inc. (a) (c)		552		5,216
Commvault Systems, Inc. (a) (c)		2,353		49,837
Compellent Technologies, Inc. (a) (c)		442		5,317
Comscore, Inc. (a) (c)		401		13,085
Comsys IT Partners, Inc. (a) (c)		1,102		17,390
Comtech Group, Inc. (a) (c)		1,029		16,577
Comtech Telecommunications (a) (c)		1,601		86,470
Comverge, Inc. (a) (c)		362		11,399
Concur Technologies, Inc. (a) (c)		2,865		103,742
Conexant Systems, Inc. (a) (c)		33,941		28,171
Constant Contact, Inc. (a) (c)		484		10,406
CPI International, Inc. (a)		460		7,866
Cray, Inc. (a) (c)		2,174		13,022
CSG Systems International (a)		2,843		41,849
Cubic Corp. (c)		1,095		42,924
Daktronics, Inc. (c)		2,072		46,765
Data Domain, Inc. (a) (c)		575		15,145
DealerTrack Holdings Inc. (a) (c)		2,200		73,634
Deltek, Inc. (a) (c)		602		9,168
Dice Holdings, Inc. (a)		1,136		9,077
Digi International, Inc. (a) (c)		1,746		24,776

	SHARES		VALUE
Technology - 13.2% (Continued)
Digital River, Inc. (a)		2,780	$	91,935
Diodes, Inc. (a) (c)		2,082		62,606
Ditech Networks, Inc. (a) (c)		2,275		7,894
DivX, Inc. (a)		1,547		21,658
Double-take Software, Inc. (a) (c)		566		12,294
DSP Group, Inc. (a) (c)		2,128		25,962
Eagle Test Systems, Inc. (a) (c)		565		7,221
Echelon Corp. (a) (c)		2,165		44,686
Electronics for Imaging (a)		3,750		84,300
EMS Technologies, Inc. (a) (c)		1,067		32,266
Emulex Corp. (a)		5,925		96,696
Epicor Software Corp. (a) (c)		4,066		47,897
EPIQ Systems, Inc. (a) (c)		1,495		26,028
Equinix, Inc. (a) (c)		2,433		245,903
Exar Corp. (a)		2,316		18,459
Excel Technology, Inc. (a) (c)		848		22,981
Extreme Networks, Inc. (a) (c)		8,393		29,711
FalconStor Software, Inc. (a) (c)		2,601		29,287
Finisar Corp. (a) (c)		16,046		23,267
Flir Systems, Inc. (a) (c)		8,726		273,124
Formfactor, Inc. (a) (c)		3,216		106,450
Foundry Networks, Inc. (a)		9,617		168,490
Gartner, Inc. (a) (c)		4,564		80,144
Genesis Microchip, Inc. (a) (c)		2,492		21,356
Geoeye, Inc. (a) (c)		1,155		38,866
Gerber Scientific, Inc. (a) (c)		1,587		17,140
Guidance Software, Inc. (a)		224		3,123
Harmonic, Inc. (a)		5,211		54,611
Harris Stratex Networks, Inc. (a) (c)		1,688		28,190
Hittite Microwave Corp. (a) (c)		913		43,605
Hughes Communications, Inc. (a) (c)		428		23,373
Hutchinson Technology, Inc. (a) (c)		1,802		47,429
i2 Technologies, Inc. (a) (c)		995		12,537
ICX Technologies, Inc. (a)		334		3,213
iGate Corp. (a) (c)		1,552		13,145
IHS Inc. (a)		2,081		126,025
II-VI, Inc. (a) (c)		1,652		50,469
Imation Corp. (c)		2,451		51,471
Imergent, Inc. (c)		812		8,599
Immersion Corp. (a) (c)		1,709		22,132
Infinera Corporation (a) (c)		1,083		16,072
Informatica Corp. (a)		6,053		109,075
Innovative Solutions & Support, Inc. (a) (c)		833		8,072
Integral Systems, Inc. (c)		571		13,281
Interactive Intelligence, Inc. (a) (c)		866		22,819
Interdigital, Inc. (a) (c)		3,306		77,129
Intermec, Inc. (a) (c)		4,003		81,301
Internet Brands, Inc. (a)		402		2,826
Internet Capital Group, Inc. (a) (c)		2,752		32,308
InterVoice, Inc. (a) (c)		2,709		21,645
Interwoven, Inc. (a)		3,002		42,688
Ion Geophysical Corp. (a)		4,951		78,127
Ionatron, Inc. (a) (c)		2,297		6,569
IPG Photonics Corp. (a) (c)		715		14,293
iRobot Corp. (a) (c)		744		13,452
Isilon Systems, Inc. (a) (c)		578		2,936
Ixia (a)		3,012		28,554
IXYS Corp. (a) (c)		1,911		15,326

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 - 13.2% (Continued)
j2 Global Communications, Inc. (a) (c)		3,489	$	73,862
JDA Software Group, Inc. (a)		2,049		41,923
Kemet Corp. (a) (c)		6,096		40,416
Kenexa Corp. (a) (c)		1,667		32,373
Keynote Systems, Inc. (a) (c)		1,035		14,542
Lattice Semiconductor Corp. (a) (c)		8,031		26,101
Lawson Software, Inc. (a) (c)		8,751		89,610
Limelight Networks, Inc. (a) (c)		1,238		8,530
Lionbridge Technologies (a) (c)		4,201		14,914
Liveperson, Inc. (a) (c)		2,420		12,923
Loral Space & Communications, Inc. (a)		741		25,379
Macrovision Corp. (a) (c)		3,633		66,593
Magma Design Automation, Inc. (a) (c)		2,643		32,271
Manhattan Associates, Inc. (a) (c)		1,932		50,928
Mantech International Corp. - Class A (a)		1,265		55,432
Mentor Graphics Corp. (a) (c)		5,640		60,799
Mercadolibre, Inc. (a) (c)		1,078		79,643
Mercury Computer Systems, Inc. (a) (c)		1,476		23,778
Methode Electronics, Inc.		2,624		43,139
Micrel, Inc. (c)		3,671		31,020
MICRO Systems, Inc. (a) (c)		2,731		191,607
Microsemi Corp. (a)		5,250		116,235
MicroStrategy, Inc. (a)		654		62,195
Microtune, Inc. (a)		3,717		24,272
MIPS Technologies, Inc. (a) (c)		3,055		15,153
Monolithic Power Systems, Inc. (a) (c)		1,534		32,935
Monotype Imaging Holdings Inc Com (a) (c)		737		11,180
MRV Communications, Inc. (a) (c)		8,801		20,418
MSC.Software Corp. (a) (c)		2,916		37,879
Multi-Fineline Electronix, Inc. (a) (c)		556		9,641
Ness Technologies, Inc. (a) (c)		1,930		17,814
Netezza Corp Com (a) (c)		679		9,370
Netgear, Inc. (a) (c)		2,332		83,182
Netlogic Microsystems, Inc. (a) (c)		1,119		36,032
Network Equipment Technologies, Inc. (a) (c)		1,744		14,684
Newport Corp. (a) (c)		2,855		36,515
Nextwave Wireless, Inc. (a) (c)		1,791		9,636
Novatel Wireless, Inc. (a) (c)		2,070		33,534
Nuance Communications, Inc. (a) (c)		9,489		177,254
Omniture, Inc. (a) (c)		1,843		61,353
Omnivision Technologies, Inc. (a) (c)		3,739		58,515
ON Semiconductor Corp. (a) (c)		15,988		141,973
On2 Technologies, Inc. (a) (c)		7,516		7,666
Opentv Corp. (a) (c)		6,148		8,115
Openwave Systems, Inc.		6,638		17,259
Oplink Communications, Inc. (a) (c)		1,095		16,808
Optium Corp. (a) (c)		398		3,136
OSI Systems, Inc. (a)		1,036		27,423
Packeteer, Inc. (a) (c)		2,441		15,037
Palm, Inc. (c)		6,443		40,849
Parametric Technology Corp. (a) (c)		7,827		139,712
Park Electrochemical Corp. (c)		1,415		39,960
PDF Solutions, Inc. (a) (c)		1,479		13,326
Pegasystems, Inc. (c)		962		11,477
Pericom Semiconductor Corp. (a) (c)		1,849		34,576
Perot Systems Corp. (a)		6,075		82,012
Plexus Corp. (a)		3,214		84,400
PLX Technology, Inc. (a) (c)		1,759		16,359

	SHARES		VALUE
Technology - 13.2% (Continued)
PMC - Sierra, Inc. (a) (c)		14,533	$	95,046
Progress Software Corp. (a)		2,887		97,234
Pros Holdings, Inc. (a) (c)		525		10,300
QAD, Inc. (c)		1,023		9,555
Quantum Corp. (a) (c)		14,100		37,929
Quest Software, Inc. (a) (c)		4,708		86,816
Rackable Systems, Inc. (a) (c)		1,946		19,460
Radiant Systems, Inc. (a)		1,838		31,669
Radisys Corp. (a) (c)		1,482		19,859
RealNetworks, Inc. (a) (c)		7,512		45,748
RF Micro Devices, Inc. (a) (c)		16,989		97,007
RightNow Technologies, Inc. (a) (c)		1,055		16,722
Rimage Corp. (a) (c)		677		17,568
Rubicon Technology, Inc. (a) (c)		435		10,331
Safeguard Scientifics, Inc. (a) (c)		8,442		15,196
SAIC, Inc. (a) (c)		8,560		172,227
Sapient Corp. (a) (c)		5,727		50,455
SAVVIS, Inc. (a) (c)		1,815		50,657
Scansource, Inc. (a) (c)		1,802		58,295
Seachange International, Inc. (a)		1,947		14,077
Secure Computing Corp. (a) (c)		3,743		35,933
Semtech Corp. (a)		5,078		78,811
Shoretel, Inc. (a) (c)		608		8,494
SI International, Inc. (a) (c)		859		23,597
Sigma Designs, Inc. (a) (c)		1,885		104,052
Silicon Graphics, Inc. (a) (c)		429		7,842
Silicon Image, Inc. (a)		5,725		25,877
Silicon Storage Technology, Inc. (a) (c)		6,368		19,040
Sirf Technology Holdings, Inc. (a) (c)		4,050		101,776
Skyworks Solutions, Inc. (a) (c)		11,286		95,931
Smart Modular Technologies, Inc. (a) (c)		3,339		33,991
Smith Micro Software, Inc. (a) (c)		1,684		14,263
Solera Holdings, Inc. (a)		1,737		43,043
SonicWALL, Inc. (a)		4,531		48,572
Sonus Networks, Inc. (a) (c)		17,765		103,570
Sourcefire, Inc. (a) (c)		437		3,645
Sourceforge, Inc. (a) (c)		4,615		11,307
Spansion, Inc. (a) (c)		5,936		23,328
SPSS, Inc. (a) (c)		1,361		48,873
SRA International, Inc. - Class A (a)		2,691		79,250
Standard Microsystems Corp. (a)		1,558		60,871
Stanley, Inc. (a)		408		13,064
Starent Networks Corp. (a) (c)		817		14,910
Stec, Inc. (a) (c)		2,150		18,791
Stratasys, Inc. (a) (c)		1,424		36,796
Successfactors, Inc. (a)		722		8,534
Super Micro Computer, Inc. (a) (c)		613		4,702
Supertex, Inc. (a) (c)		843		26,377
Switch & Data Facilities Co., Inc. (a) (c)		876		14,034
Sybase, Inc. (a)		6,326		165,045
Sycamore Networks, Inc. (a) (c)		12,949		49,724
SYKES Enterprises, Inc. (a) (c)		2,059		37,062
Synaptics, Inc. (a) (c)		1,757		72,318
Synchronoss Technologies, Inc. (a) (c)		1,227		43,485
Syniverse Holdings, Inc. (a)		1,662		25,894
SYNNEX Corp. (a) (c)		877		17,189
Syntax Brillian Corp. (a) (c)		3,811		11,738
Syntel, Inc. (c)		566		21,802

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 - 13.2% (Continued)
Taleo Corp. (a) (c)		958	$	28,529
Techtarget, Inc. (a) (c)		514		7,597
Techwell, Inc. (a) (c)		995		10,955
Tekelec (a) (c)		4,061		50,762
Terremark Worldwide, Inc. (a) (c)		2,750		17,875
Tessera Technologies, Inc. (a) (c)		3,243		134,909
TIBCO Software, Inc. (a) (c)		13,746		110,930
Trident Microsystems, Inc. (a) (c)		4,012		26,319
Triquint Semiconductor, Inc. (a) (c)		9,835		65,206
Trizetto Group (a) (c)		3,017		52,405
TTM Technologies, Inc. (a) (c)		2,936		34,234
Tyler Technologies, Inc. (a) (c)		2,752		35,473
Ultimate Software Group, Inc. (a)		1,679		52,838
Unica Corp. (a)		651		6,022
Universal Display Corp. (a) (c)		1,665		34,416
UTStarcom, Inc. (a) (c)		8,497		23,367
Varian, Inc. (a) (c)		2,171		141,766
VASCO Data Security International, Inc. (a) (c)		1,749		48,832
Veraz Networks, Inc. (a) (c)		604		2,911
Viasat, Inc. (a) (c)		1,557		53,607
Vignette Corp. (a) (c)		2,092		30,564
Virtusa Corp. (a)		295		5,112
Visual Sciences, Inc. (a) (c)		1,229		22,712
Vocus, Inc. (a) (c)		860		29,696
Volterra Semiconductor Corp. (a) (c)		1,255		13,843
Vonage Holdings Corp. (a) (c)		2,203		5,067
Websense, Inc. (a)		3,217		54,625
Wind River Systems, Inc. (a)		5,302		47,347
Zoran Corp. (a)		3,443		77,502
				12,205,811
Utilities - 4.1%
Alaska Communications Systems Group, Inc. (c)		2,946		44,190
Allete, Inc. (c)		1,765		69,859
American States Water Co. (c)		1,182		44,538
Aquila, Inc. (a)		26,329		98,207
Atlantic Tele-Network, Inc. (c)		448		15,133
Avista Corp. (c)		3,653		78,686
Black Hills Corp. (c)		2,604		114,836
California Water Service Group		1,344		49,755
Centennial Communications Corp. (a)		1,605		14,910
Central Vermont Public Service Corp. (c)		681		21,002
CH Energy Group, Inc. (c)		1,108		49,350
Cincinnati Bell, Inc. (a)		17,385		82,579
Cleco Corp. (c)		3,974		110,477
Consolidated Communications Holdings, Inc.		1,517		30,188
Consolidated Water Co, Inc. (c)		947		23,855
El Paso Electric Co. (a)		3,021		77,247
The Empire District Electric Co. (c)		2,106		47,975
EnergySouth, Inc. (c)		484		28,072
Fairpoint Communications, Inc. (c)		1,934		25,181
FiberTower Corp. (a) (c)		8,313		18,954
General Communication (a) (c)		3,756		32,865

	SHARES		VALUE
Utilities - 4.1% (Continued)
Global Crossing Ltd. (a) (c)		2,405	$	53,030
Globalstar, Inc. (a) (c)		1,335		10,680
Golden Telecom, Inc. (a)		1,035		104,483
Hungarian Telephone & Cable Corp. (a) (c)		239		4,228
Ibasis, Inc. (c)		2,191		11,240
ICO Global Communications Ltd. (a) (c)		6,798		21,618
Idacorp, Inc. (c)		3,006		105,871
IDT Corp. (c)		3,504		29,609
Iowa Telecommunications Services, Inc. (c)		2,209		35,918
iPCS, Inc. (c)		1,173		42,216
ITC Holdings Corp. (c)		2,799		157,920
The Laclede Group, Inc. (c)		1,500		51,360
Mediacom Communications Corp. (a) (c)		3,848		17,662
MGE Energy, Inc. (c)		1,438		51,006
Neutral Tandem, Inc. (a) (c)		445		8,464
New Jersey Resources Corp. (c)		1,969		98,489
Nicor, Inc. (c)		3,118		132,047
North Pittsburgh Systems, Inc.		1,057		23,983
Northwest Natural Gas Co. (c)		1,940		94,400
Northwestern Corp.		2,495		73,602
Ntelos Holdings Corp. (c)		1,841		54,659
Orbcomm, Inc. (a) (c)		1,728		10,869
Otter Tail Corp. (c)		2,073		71,726
Paetec Holding Corp. (a) (c)		4,100		39,975
Piedmont Natural Gas Co. (c)		4,918		128,655
Pike Electric Corp. (a) (c)		1,050		17,598
PNM Resources, Inc.		5,333		114,393
Portland General Electric Co.		1,889		52,476
Premiere Global Services, Inc. (a) (c)		5,000		74,250
RCN Corp. (c)		2,047		31,913
Rural Cellular Corp. (a) (c)		806		35,537
Shenandoah Telecom Co. (c)		1,560		37,409
SJW Corp. (c)		1,057		36,646
South Jersey Industries, Inc.		2,050		73,985
Southwest Gas Corp.		2,815		83,803
Southwest Water Co. (c)		1,595		19,969
SureWest Communications (c)		1,029		17,596
Time Warner Telecom, Inc. (a)		9,498		192,714
UIL Holdings Corp. (c)		1,725		63,739
Unisource Energy Corp.		2,465		77,771
USA Mobility, Inc. (c)		1,531		21,893
Virgin Mobile Usa, Inc. (a) (c)		1,838		16,340
Westar Energy, Inc. (c)		6,807		176,574
WGL Holdings, Inc.		3,427		112,269
				3,768,444
TOTAL COMMON STOCKS
(Cost $77,746,035)				86,213,139

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
UNIT INVESTMENT TRUSTS - 1.0%
iShares Russell 2000 Index Fund (c)		12,700	$	964,184
TOTAL INVESTMENT COMPANIES
(Cost $999,236)				964,184
	PRINCIPAL
	AMOUNT		VALUE
SHORT TERM INVESTMENTS (e) - 5.1%
U.S. Treasury Bills - 2.2%
2.995%, 03/13/2008	$	2,000,000	$	1,987,870
	SHARES		VALUE
Money Market Funds - 2.9%
Northern Institutional Diversified Assets Portfolio		2,719,617	$	2,719,617
TOTAL SHORT TERM INVESTMENTS
(Cost $4,707,727)				4,707,487
Total Investments (Cost $83,452,998) (b) - 99.5%				91,884,810
Northern Institutional Diversified Assets Portfolio (d) - 51.5%				47,542,292
Liabilities in Excess of Other Assets - (51.0)%				(47,052,507	)
TOTAL NET ASSETS - 100.0%			$	92,374,595

(a)	Non-income producing security.
(b)	For federal income tax purposes, cost is $84,614,114 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $22,287,087 and $(14,016,371) respectively, with a net appreciation / (depreciation) of $8,270,696.
(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
	$45,956,420, $47,542,292, and $104,471, respectively.
(e)	Securities and other assets with an aggregate value of $4,401,540 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of
	December 31, 2007:

		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)
Russell 2000 Index (03/08)	1	$6,792
Russell 2000 Index Mini (03/08)	52	73,528

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

 75

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

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value	$	91,884,810
Collateral for securities loaned, at fair value		47,542,292
Cash		33
Receivables:
Shares sold		804,055
Interest and dividends		137,375
Investments sold		154,248
Prepaid expenses and other		2,755
		140,525,568
LIABILITIES
Payables:
Payable upon return of securities loaned		47,542,292
Investment securities purchased		85,080
Shares redeemed		409,781
Variation margin		8,928
Advisory fees		27,622
Professional fees		25,995
Fund accounting fees		22,096
Administration fees		7,892
Custodian fees		4,678
Royalty fees		2,500
12b-1 fees		329
Directors’ fees		204
Other accrued expenses		13,576
		48,150,973
NET ASSETS*
Paid-in capital		78,689,606
Accumulated undistributed net investment
income / (loss)		885,513
Accumulated net realized gain / (loss)
on investments and futures contracts		4,287,344
Net unrealized appreciation / (depreciation)
on investments and futures contracts		8,512,132
	$	92,374,595
Investments at cost	$	83,452,998
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	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$91,675,936	1,368,392	$	67.00
Class F	$698,659	10,462	$	66.78

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2007
	Percentage of ordinary distributions designated as
	qualified dividend income		51.13%
	Dividends received deduction for corporate shareholders		50.90%
	Undistributed ordinary income	$	1,255,954
	Undistributed long-term gains	$	4,163,242
	Unrealized appreciation	$	8,351,016

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Interest	$	62,340
Dividends		1,466,672
Other income		126,498
		1,655,510
EXPENSES
Advisory fees		343,608
Administration fees		98,174
Fund accounting fees		55,819
Professional fees		36,061
Custodian fees		32,793
Transfer agent fees		22,331
Directors’ fees		11,914
Royalty fee		10,310
Shareholder reporting fees		10,072
12b-1 fees - Class F		1,160
Other expenses		8,991
		631,233
NET INVESTMENT INCOME / (LOSS)		1,024,277
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		4,842,144
Net realized gain / (loss) on futures contracts		(411,468	)
		4,430,676
Net change in unrealized appreciation /
(depreciation) on investments and
futures contracts		(7,603,496	)
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		(3,172,820	)
NET INCREASE / (DECREASE) IN NET
ASSETS FROM OPERATIONS	$	(2,148,543	)

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory Fee	Administration Fee	Class I Expense Limit	Class F Expense Limit
0.30%	0.10%	0.75%	0.95%

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
For the Year Ended December 31,
	2007			2006
OPERATIONS
Net investment income / (loss)	$	1,024,277		$	732,129
Net realized gain / (loss) on investments and futures		4,430,676			6,958,894
Net change in unrealized appreciation / (depreciation) on investments and futures contracts		(7,603,496	)		6,109,042
		(2,148,543	)		13,800,065
DISTRIBUTIONS TO SHAREHOLDERS*
Class I
Net investment income		(602,763	)		(521,036	)
Net realized gain on investments		(7,077,549	)		(2,571,112	)
Class F
Net investment income		(2,328	)		(153	)
Net realized gain on investments		(33,991	)		(792	)
		(7,716,631	)		(3,093,093	)
FUND SHARE TRANSACTIONS
Class I
Proceeds from shares sold		14,888,385			21,481,354
Reinvestment of distributions		7,680,312			3,092,148
Payments for shares redeemed		(16,784,215	)		(15,380,526	)
		5,784,482			9,192,976
Class F
Proceeds from shares sold		516,472			330,479
Reinvestment of distributions		36,319			945
Payments for shares redeemed		(63,698	)		(85,352	)
		489,093			246,072
NET INCREASE / (DECREASE) IN NET ASSETS		(3,591,599	)		20,146,020
NET ASSETS
Beginning of period		95,966,194			75,820,174
End of period	$	92,374,595		$	95,966,194
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	885,513		$	529,373

FUND SHARE TRANSACTIONS Class I	��
Sold			210,290			308,422
Reinvestment of distributions			107,162			44,543
Redeemed			(238,974	)		(221,188	)
Net increase / (decrease) from fund share transactions			78,478			131,777
FUND SHARE TRANSACTIONS Class F
Sold			7,193			4,756
Reinvestment of distributions			508			14
Redeemed			(910	)		(1,177	)
Net increase / (decrease) from fund share transactions			6,791			3,593
TOTAL COST OF PURCHASES OF:
Common Stocks		$	18,052,861		$	28,192,639
		$	18,052,861		$	28,192,639
TOTAL PROCEEDS FROM SALES OF:
Common Stocks		$	19,270,153		$	19,976,137
		$	19,270,153		$	19,976,137
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income**		$	1,533,172		$	671,425
Long-term capital gains			6,183,459			2,421,668
		$	7,716,631		$	3,093,093
** The percentage of taxable ordinary income distributions that are designated as short-term capital gain
distributions under Internal Revenue Section 871 (k)(2)(C) is 60.62%

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 Class I - Average Annual Total Return

1-Year	5-Year	Since Inception
10.10%	19.52%	18.77%

Summit EAFE International Index Portfolio Class F - Average Annual Total Return

1-Year	5-Year	Since Inception
9.90%	19.29%	18.54%

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. Prior to December 17, 2007, Class F share performance is based on Class I performance. Separate account expenses are not included. Absent limitation of expenses during certain of the periods shown, performance would have been lower.

Portfolio Data 

Managers:	Subadvised by World Asset Management, LLC A division of Munder Capital Management
Inception Date:	November 12, 2000
Total Net Assets:	$118.63 Million
Number Of Equity Holdings:	906
Medium Cap Size:	$2,645 (in millions)
Average Price-to-book Ratio:	2.19 x
Divident Yield:	2.68%

Top 10 Equity Holdings  Sector Allocations

	(% of net assets)
BP Plc Vodafone Group Plc HSBC Holdings Plc Nestle SA Total SA Royal Dutch Shell Plc - Class A Nokia OYJ Toyota Motor Corp. GlaxoSmithKline Plc Banco Santander Central Hispana SA	1.66% 1.49% 1.45% 1.30% 1.30% 1.13% 1.08% 1.02% 1.00% 0.97%

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.

Managers’ Comments:

For the period ended December 31, 2007, the Summit EAFE International Index Portfolio’s (Class I) total return was 10.10% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 11.17% “net” total return for the MSCI EAFE Index (in U.S dollars after the impact of foreign taxes). The difference of 1.07% is referred to as “tracking error.” The largest 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 weightings 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 pre-expense.

 79

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

FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding throughout the period.
	Class I
	Year Ended December 31,
		2007			2006			2005			2004			2003
Net asset value, beginning of period		$	98.66		$	81.98		$	74.34		$	64.41		$	49.59
INVESTMENT ACTIVITIES:
Net investment income / (loss)			1.00			1.46			1.59			1.00	(1)		1.34
Net realized and unrealized gains / (losses)			8.80			18.83			7.59			10.42			14.49
Total from Investment Activities			9.80			20.29			9.18			11.42			15.83
DISTRIBUTIONS:
Net investment income			(1.48	)		(1.63	)		(0.72	)		(0.69	)		(0.19	)
Net realized gains			(2.21	)		(1.98	)		(0.82	)		(0.80	)		(0.82	)
Total Distributions			(3.69	)		(3.61	)		(1.54	)		(1.49	)		(1.01	)
Net asset value, end of period		$	104.77		$	98.66		$	81.98		$	74.34		$	64.41
Total return			10.10	%		25.56	%		12.57	%		18.02	%		32.79	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net(2)			0.95	%		0.95	%		0.95	%		0.95	%		0.65	%
Ratio of expenses to average net assets – gross			1.26	%		1.29	%		1.50	%		1.69	%		2.46	%
Ratio of net investment income / (loss) to average net assets			1.48	%		1.66	%		1.75	%		1.70	%		2.14	%
Portfolio turnover rate (3)			47.52	%		44.33	%		76.61	%		55.49	%		75.27	%
Net assets, end of period (000’s)		$	118,631		$	58,754		$	44,084		$	50,938		$	16,565

	Class F
	Year Ended
	December 31,
	2007(4)
Net asset value, beginning of period	$	102.10
INVESTMENT ACTIVITIES:
Net investment income / (loss)		0.01
Net realized and unrealized gains / (losses)		2.65
Total from Investment Activities		2.66
DISTRIBUTIONS:
Net investment income		—
Net realized gains		—
Total Distributions		—
Net asset value, end of period	$	104.76
Total return		2.61	%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net(2)		1.15	%(5)
Ratio of expenses to average net assets – gross		0.75	%(5)
Ratio of net investment income / (loss) to average net assets		0.25	%(5)
Portfolio turnover rate (3)		47.52	%
Net assets, end of period (000’s)	$	1

(1)	Per share amounts are based on average shares outstanding.
(2)	Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.
(3)	Portfolio Turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(4)	Portfolio commenced operations on December 17, 2007.
(5)	Annualized.

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, 2007
	SHARES		VALUE
COMMON STOCKS - 99.2%
Australia - 6.3%
AGL Energy Ltd.		4,193	$	49,040
Alumina Ltd.		10,787		60,333
Amcor Ltd.		7,772		47,155
AMP Ltd.		15,967		139,497
Aristocrat Leisure Ltd.		2,454		24,241
Australia & New Zealand Banking Group Ltd.		15,231		367,238
Australian Stock Exchange Ltd.		1,423		75,592
AXA Asia Pacifica Holdings Ltd.		8,433		54,646
Babcock & Brown Ltd.		2,126		50,682
Bendigo Bank Ltd.		2,465		31,946
BHP Billiton Ltd.		26,658		939,557
Billabong International Ltd.		1,824		23,735
BlueScope Steel Ltd.		7,043		59,676
Boart Longyear Group (a)		11,446		23,618
Boral Ltd.		6,513		34,999
Caltex Australia Ltd.		1,232		20,954
Centro Properties Group		9,499		8,424
CFS Retail Property Trust		22,423		46,071
Challenger Financial Services Group Ltd.		4,668		20,453
Coca-Cola Amatil Ltd.		5,406		44,999
Cochlear Ltd.		558		36,697
Commonwealth Bank of Australia		10,568		548,401
Computershare Ltd.		4,023		34,900
Consolidated Media Holdings		15,898		58,629
Crown Ltd. (a)		1,182		13,954
CSL Ltd.		4,722		150,754
CSR Ltd.		9,089		24,740
DB RREEF Trust (a)		26,689		46,868
Fairfax Media Ltd.		11,567		47,532
Fortescue Metals Group (a)		9,770		64,339
Foster’s Group Ltd.		16,992		97,725
Goodman Fielder Ltd.		14,248		23,707
Goodman Group (a)		13,454		57,767
GPT Group		18,319		64,983
Harvey Norman Holdings Ltd.		5,999		35,818
Insurance Australia Group Ltd.		15,198		54,980
Leighton Holdings Ltd.		1,151		61,851
Lend Lease Corp. Ltd.		3,544		53,834
Macquarie Airports Management Ltd.		6,483		23,054
Macquarie Gourp Ltd.		2,254		150,809
Macquarie Infrastructure Group		20,115		53,516
Mirvac Group		9,273		48,853
National Australia Bank Ltd.		13,993		464,308
Newcrest Mining Ltd.		4,266		123,984
OneSteel Ltd.		6,392		34,517
Orica Ltd.		2,469		68,831
Origin Energy Ltd.		8,338		64,792
Oxiana Ltd.		10,799		32,997
Paladin Energy Ltd. (a)		3,999		23,842
Qantas Airways Ltd.		9,616		45,932
QBE Insurance Group Ltd.		7,292		213,467
Rio Tinto Ltd.		2,198		258,517
Santos Ltd.		5,202		64,495
Sonic Healthcare Ltd.		3,340		49,034
St. George Bank Ltd.		2,302		63,852
Stockland		13,366		98,817

	SHARES		VALUE
Australia - 6.3% (Continued)
Suncorp-Metway Ltd.		8,003	$	118,897
TABCORP Holdings Ltd.		5,340		69,300
Tatts Group Ltd.		10,389		36,397
Telstra Corporation Ltd.		13,194		36,724
Telstra Corp.		23,583		97,116
Toll Holdings Ltd.		5,127		51,545
Transurban Group		9,446		56,731
Wesfarmers Ltd. - PPS (a)		2,525		90,236
Wesfarmers Ltd.		5,733		203,872
Westfield Group (a)		14,917		275,055
Westpac Banking Corp.		14,567		357,111
Woodside Petroleum Ltd.		4,015		177,643
Woolworths Ltd.		9,727		290,301
WorleyParsons Ltd.		1,091		49,813
Zinifex Ltd.		4,678		50,933
				7,445,626
Austria - 0.6%
Erste Bank der Oesterreichischen Sparkassen AG		1,537		108,988
Immoeast AG (a)		3,300		35,559
IMMOFINANZ AG		5,806		58,996
Meinl European Land (a)		3,544		48,862
Oesterreischeische Elektrizitaetswirtschafts AG		686		48,022
OMV AG		1,498		121,378
Raiffeisen International Bank-Holding AG		304		46,046
Telekom Austria AG		3,225		89,729
Voestalpine AG		1,041		75,263
Wienerberger AG		901		49,966
				682,809
Belgium - 1.2%
Belgacom SA		1,638		80,802
Colruyt SA		155		36,492
Delhaize Group		806		70,941
Dexia		4,593		115,703
Fortis		17,334		456,431
Groupe Bruxelles Lambert SA		857		110,100
Inbev		1,507		125,589
KBC Groep NV		1,483		208,583
Mobistar SA		402		36,587
Solvay SA		575		80,453
UCB SA		1,011		45,852
Umicore		211		52,444
				1,419,977
China - 0.0%
C C Land Holdings Ltd.		6,655		9,696
Fosun International (a)		9,839		9,211
				18,907

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
Denmark - 1.0%
AP Moller - Maersk A/S		12	$	127,999
Carlsberg A/G		284		34,358
Coloplast A/S - B Shares (a)		381		33,057
Danisco A/S		635		45,010
Danske Bank A/S		3,895		152,553
DSV A/S		2,058		45,094
FLSmidth & Co A/S		501		51,278
Jyske Bank A/S (a)		612		48,239
Novo-Nordisk A/S - Class B		5,982		392,931
Novozymes A/S		436		49,755
Rockwool International		95		22,129
Sydbank A/S		878		37,745
Topdanmark A/S (a)		242		34,829
Vestas Wind Systems A/S (a)		1,480		160,187
William Demant Holding A/S (a)		255		23,650
				1,258,814
Finland - 1.9%
Cargotec Corp. - B Shares		475		21,980
Elisa Corporation		1,567		48,112
Fortum OYJ		3,794		170,904
Kesko OYJ - B Shares		622		34,302
Kone OYJ		664		46,531
Metso OYJ		1,143		62,383
Neste Oil OYJ		1,412		49,814
Nokia OYJ		32,891		1,275,304
Nokian Renkaat OYJ		973		34,213
Oko Bank		1,198		22,893
Orion OYJ		987		23,132
Outokumpu OYJ		1,211		37,553
Rautaruukki OYJ		800		34,680
Sampo OYJ		4,163		110,044
Sanoma Wsoy OYJ		1,286		36,908
Stora Enso OYJ		5,353		80,142
UPM-Kymmene OYJ		4,632		93,592
Wartsila OYJ - B Shares		623		47,447
YIT OYJ		1,560		34,189
				2,264,123
France - 10.6%
Accor SA		1,883		150,592
Aeroports de Paris		329		33,671
Air France-KLM		1,416		49,790
Air Liquide		1,966		292,585
Alcatel-Lucent		19,958		144,439
Alstom		891		191,495
ArcelorMittal		7,870		612,023
Atos Origin SA (a)		666		34,421
AXA SA		13,205		528,802
BNP Paribas SA		7,010		760,680
Bouygues SA		1,900		158,340
Business Objects SA (a)		780		47,669
Cap Gemini SA		1,298		81,603
Carrefour SA		5,198		404,991
Casino Guichard Perrachon SA		438		47,638
Cie de Saint-Gobain		2,654		250,240
Cie Generale de Geophysiqu (a)		202		57,590

	SHARES		VALUE
France - 10.6% (Continued)
CNP Assurances		397	$	51,653
Compagnie Generale des Etablissements Michelin - B Shares		1,288		147,825
Credit Agricole SA		5,277		177,991
Dassault Systemes SA		612		36,229
Eiffage		213		20,977
Electricite de France		697		83,032
Essilor International SA		1,910		121,893
France Telecom SA		15,522		558,726
Gaz de France		1,691		98,893
Groupe Danone		3,781		339,420
Hermes International		665		84,043
Imerys SA		430		35,357
JC Decaux Sa		606		23,833
Klepierre		724		37,017
Lafarge SA		1,245		226,622
Lagardere S.C.A.		1,190		89,237
Legrand SA		334		11,402
L’Oreal SA		2,162		309,711
LVMH Moet Hennessy Louis Vuitton SA		2,083		251,798
Natixis		1,737		33,370
Neopost SA		330		34,010
PagesJaunes Groupe SA		1,702		34,116
Pernod-Ricard SA		750		173,363
Peugeot SA		1,452		110,072
PPR SA		731		117,564
Publicis Groupe		1,336		52,309
Renault SA		1,615		229,061
Safran SA		1,879		38,543
Sanofi-Aventis		8,542		786,548
Schneider Electric SA		1,870		253,391
Scor SE		1,395		35,680
Societe Generale		3,128		452,437
Societe Television Francaise 1		1,322		35,371
Sodexho Alliance SA		972		59,687
Suez SA		9,142		622,458
Technip SA		914		72,829
Thales SA		815		48,557
Thomson		2,356		33,516
Total SA		18,631		1,548,021
Unibail		585		128,227
Valeo SA		750		30,922
Vallourec SA		438		118,566
Veolia Environnement		2,910		265,698
Vinci SA		2,873		212,754
Vivendi Universal SA		9,803		449,754
Zodiac SA		564		36,068
				12,565,120
Germany - 8.9%
Adidas AG		1,943		145,618
Allianz AG		3,829		828,254
BASF AG		4,119		610,711
Bayer AG		6,299		575,868
Bayerische Motoren Werke AG		1,587		98,264
Beiersdorf AG		893		69,197
Bilfinger Berger AG		312		24,076
Celesio AG		825		51,263
Commerzbank AG		4,931		189,318

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
Germany - 8.9% (Continued)
Continental AG		1,422	$	185,014
Daimler AG		7,962		774,117
Deutsche Bank AG		4,256		556,291
Deutsche Boerse AG		1,659		329,268
Deutsche Lufthansa AG		2,273		60,550
Deutsche Post AG		6,636		228,098
Deutsche Postbank AG		820		72,832
Deutsche Telekom AG		24,450		536,923
E.ON AG		5,229		1,113,046
Fresenius Medical Care AG		1,687		90,495
Fresenius SE		417		34,691
Gea Group AG (a)		1,363		47,428
HeidelbergCement AG		146		22,627
Hochtief AG		376		50,575
Hypo Real Estate Holding AG		1,781		94,001
Infineon Technologies AG (a)		6,027		71,111
IVG Immobilien AG		935		32,234
K&S AG		271		64,484
Karstadt Quelle AG (a)		825		19,589
Linde AG		991		131,052
MAN AG		980		163,054
Merck KGaA		546		70,488
Metro AG		1,440		120,932
Muenchener Rueckversicherungs AG		1,765		343,055
Puma AG Rudolf Dassler Sport		59		23,549
Q-cells AG (a)		367		52,370
Rheinmetall AG		302		24,011
RWE AG		3,928		551,322
Salzgitter AG		395		58,935
SAP AG		7,550		392,198
Siemens AG		7,062		1,123,981
Solarworld AG		617		37,662
ThyssenKrupp AG		3,017		169,162
TUI AG (a)		1,719		48,079
Volkswagen AG		1,383		315,637
				10,601,430
Greece - 0.8%
Alpha Bank AE		3,503		127,527
Coca-Cola Hellenic Bottling Co. SA		1,417		61,302
EFG Eurobank Ergasias SA		2,798		98,507
Hellenic Telecommunications Organization SA		2,985		109,978
National Bank of Greece SA		3,286		225,706
OPAP SA		2,141		85,832
Piraeus Bank SA		2,774		108,288
Public Power Corp.		977		51,423
Titan Cement Co SA		797		36,356
				904,919
Hong Kong - 2.2%
Bank of East Asia Ltd.		12,579		86,066
Belle International Holdings		17,416		26,311
BOC Hong Kong Holdings Ltd.		27,607		77,361
Cathay Pacific Airways Ltd.		13,804		36,115
Cheung Kong Holdings Ltd.		11,647		215,392
CLP Holdings Ltd.		12,146		82,947
Esprit Holdings Ltd.		8,613		128,133
Foxconn International Holdings Ltd. (a)		19,351		43,430
Hang Lung Properties Ltd.		15,508		70,207

	SHARES		VALUE
Hong Kong - 2.2% (Continued)
Hang Seng Bank Ltd.		5,605	$	115,660
Henderson Land Development Co. Ltd.		7,722		72,740
Hong Kong & China Gas Co. Ltd.		28,235		86,544
Hong Kong Aircraft		804		21,880
Hong Kong Exchanges and Clearing Ltd.		8,249		234,011
HongKong Electric Holdings Ltd.		13,423		77,208
Hopewell Holdings Ltd.		5,085		23,477
Hutchison Telecomunications International Ltd.		16,849		25,325
Hutchison Whampoa Ltd.		17,330		196,583
Kerry Properties Ltd.		5,370		43,146
Kingboard Chemical Holdings Ltd.		6,546		38,953
Lee & Man Paper Manufacturing		2,705		11,882
Li & Fung Ltd.		17,636		71,246
Link REIT		21,924		47,462
MTR Corp. Ltd.		10,710		39,420
New World Development Co. Ltd.		19,244		68,240
Noble Group Ltd.		7,544		12,735
Orient Overseas International Ltd.		1,502		11,115
Pacific Basin Shipping Ltd.		13,105		21,143
PCCW Ltd.		39,904		23,695
Shangri-La Asia Ltd.		11,794		37,058
Shui On Land Ltd.		18,919		22,080
Shun Tak Holdings		7,937		12,479
Sino Land Co.		10,073		35,784
Sun Hung Kai Properties Ltd.		10,037		213,164
Swire Pacific Ltd. - Class A		6,934		95,597
Tencent Holdings Ltd.		6,727		50,944
Tingyi Cayman Islands Holding Corp.		15,503		25,052
Wharf Holdings Ltd.		10,183		53,348
Wing Hang Bank Ltd.		1,880		28,137
				2,582,070
Ireland (Republic of) - 0.8%
Allied Irish Banks Plc		7,072		162,032
Anglo Irish Bank Corp Plc		3,059		48,928
Bank of Ireland		8,742		130,267
CRH Plc		4,376		152,591
Elan Corp. Plc (a)		4,012		86,766
Experian Group Ltd.		9,717		76,791
Invesco Ltd. (a)		2,840		89,119
Irish Life & Permanent Plc		2,535		43,771
Kerry Group Plc		1,585		50,287
Kingspan Group		1,183		17,901
Ryanair Holdings Plc (a)		3,628		24,755
Smurfit Kappa Group Plc (a)		1,416		23,173
				906,381
Italy - 4.0%
Alleanza Assicurazioni SpA		4,511		58,632
Assicurazioni Generali SpA		8,744		396,310
Autostrade SpA		2,191		83,063
Banca Monte dei Paschi di Siena SpA		10,758		57,921
Banca Popolare di Milano Scarl		4,153		56,590
Banco Popolare Scarl (a)		5,988		132,722
Bulgari SpA		2,554		35,698
Enel SpA		36,890		438,762
ENI SpA		22,386		819,874
Fiat SpA		6,393		165,440
Finmeccanica SpA		2,860		91,867
Fondiaria - SAI SpA		828		34,138

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
Italy - 4.0% (Continued)
Instituto Finanziario Industriale SpA (a)		682	$	23,233
Intesa Sanpaola		70,879		560,632
Luxottica Group SpA		1,500		47,678
Mediaset SpA		7,517		75,888
Mediobanca SpA		4,753		98,122
Parmalat SpA		15,709		61,093
Pirelli & Co. (a)		29,948		32,970
Prysmian Spa (a)		1,415		34,942
Saipem SpA		1,213		48,646
Snam Rete Gas SpA		9,425		60,218
Telecom Italia SpA - RNC		51,900		123,382
Telecom Italia SpA		93,278		289,802
Terna Rete Electrica Nazionale		14,805		59,688
Unicredito Italiano SpA		79,288		658,444
Unione di Banche Italiane SCPA		5,532		152,137
Unipol		10,348		32,793
				4,730,685
Japan - 19.4%
The 77 Bank Ltd.		3,482		21,787
Acom Co. Ltd.		490		10,022
Advantest Corp.		1,257		35,781
Aeon Co. Ltd.		5,450		79,910
Aiful Corp.		604		10,792
Aisin Seiki Co. Ltd.		1,821		75,960
Ajinomoto Co., Inc.		6,496		73,906
Alfresa Holdings		414		24,977
Alps Electric Co. Ltd.		1,878		24,359
Amada Co. Ltd.		3,760		33,051
Asahi Breweries Ltd.		4,042		68,455
Asahi Glass Co. Ltd.		7,758		104,097
Asahi Kasei Corp.		10,351		68,936
Asics Corp.		1,589		22,900
Astellas Pharma, Inc.		4,221		184,006
The Bank of Kyoto Ltd.		2,726		32,356
The Bank of Yokohama Ltd.		9,212		64,649
Benesse Corp.		574		24,509
Bridgestone Corp.		5,031		89,528
Canon, Inc.		8,908		414,641
Casio Computer Co. Ltd.		2,964		34,465
Central Japan Railway Co.		13		110,898
The Chiba Bank Ltd.		6,901		56,214
Chiyoda Corp.		928		10,575
Chubu Electric Power Co., Inc.		5,516		143,930
Chugai Pharmaceutical Co. Ltd.		2,694		38,584
Chuo Mitsui Trust Holdings, Inc.		7,204		55,264
Citizen Watch Co. Ltd.		3,393		33,075
Cosmo Oil Co Ltd.		5,933		22,306
Credit Saison Co. Ltd.		1,649		45,168
CSK Holdings Corp.		718		23,266
Dai Nippon Printing Co. Ltd.		5,676		83,477
Daido Steel Co.		3,171		23,815
Daiichi Sankyo Co. Ltd.		6,279		193,347
Daikin Industries Ltd.		2,354		131,907
Dainippon Ink and Chemicals, Inc.		7,257		36,378
Daito Trust Construction Co. Ltd.		758		42,000
Daiwa House Industry Co. Ltd.		4,438		57,325
Daiwa Securities Group, Inc.		11,572		105,242

	SHARES		VALUE
Japan - 19.4% (Continued)
Denki Kagaku KK		4,649	$	20,266
Denso Corp.		4,116		168,744
Dentsu, Inc.		18		47,693
East Japan Railway Co.		30		247,594
Eisai Co. Ltd.		2,190		86,255
Electric Power Development Co. Ltd.		1,298		48,451
Elpida Memory, Inc. (a)		711		24,694
Fanuc Ltd.		1,654		161,084
Fast Retailing Co. Ltd.		535		38,216
Fuji Electric Holdings Co. Ltd.		6,741		23,593
FUJIFILM Holdings Corp.		3,925		166,184
Fujikura Ltd.		4,742		24,110
Fujitsu Ltd.		17,274		116,433
Fukuoka Financial Group, Inc.		7,460		43,672
The Furukawa Electric Co.		5,701		22,148
The Gunma Bank Ltd.		4,904		32,396
Hachijuni Bank		4,579		30,905
Hankyu Hanshin Holdings, Inc.		10,385		44,900
Haseko Corp.		5,987		10,343
Hirose Electric Co. Ltd.		321		37,124
Hiroshima Bank		6,024		32,677
Hitachi Chemical Co. Ltd.		1,028		23,695
Hitachi Construction Machinery Co. Ltd.		1,066		31,966
Hitachi Ltd.		28,503		212,532
Hokkaido Electric Power Co., Inc.		2,098		45,447
Hokuhoku Financial Group, Inc.		10,747		31,265
Honda Motor Co. Ltd.		13,076		438,929
HOYA Corp.		3,877		123,548
Ibiden Co. Ltd.		1,089		75,547
Idemitsu Kosan Co Ltd.		218		23,124
IHI Corp.		10,972		22,884
Inpex Holdings, Inc.		8		86,649
Isetan Co. Ltd.		2,404		32,687
Isuzu Motors		5,266		23,946
ITOCHU Corp.		13,517		132,127
J Front Retailing Co Ltd. (a)		3,697		32,663
Japan Airlines Corp. (a)		9,000		20,543
Japan Petroleum Ex		306		22,379
Japan Real Estate Investment Corp.		4		50,128
Japan Retail Fund Investment Corp.		3		21,403
Japan Steel Works Ltd.		3,202		47,207
Japan Tobacco, Inc.		37		221,242
JFE Holdings, Inc.		4,780		242,177
JGC Corp.		1,990		34,362
The Joyo Bank Ltd.		5,951		33,293
JS Group Corp.		2,144		34,334
JSR Corp.		1,459		37,678
JTEKT Corp.		2,094		37,676
Kajima Corp.		7,345		23,998
Kamigumi Co. Ltd.		4,563		33,044
Kaneka Corp.		2,950		24,452
The Kansai Electric Power Co. Inc.		6,362		148,351
Kao Corp.		4,697		141,269
Kawasaki Heavy Industries Ltd.		14,984		44,396
Kawasaki Kisen Kaisha Ltd.		5,537		54,421
KDDI Corp.		21		156,398
Keihin Electric Express Railway Co. Ltd.		5,396		33,183
Keio Corp.		7,355		44,638

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 - 19.4% (Continued)
Keyence Corp.		295	$	72,803
Kikkoman Corp.		1,707		23,485
Kintetsu Corp.		14,251		44,265
Kirin Holdings Co.		6,774		99,504
Kobe Steel Ltd.		22,222		72,406
Komatsu Ltd.		7,564		205,832
Konami Corp.		769		25,194
Konica Minolta Holdings, Inc.		4,412		78,157
Kubota Corp.		9,833		66,630
Kuraray Co. Ltd.		3,940		47,930
Kurita Water Industries Ltd.		1,225		37,173
Kyocera Corp.		1,469		130,312
Kyowa Hakko Kogyo Co. Ltd.		3,132		33,475
Kyushu Electric Power Co., Inc.		3,405		83,818
Lawson, Inc.		661		23,431
Leopalace 21 Corp.		1,237		33,329
Makita Corp.		1,099		46,630
Marubeni Corp.		14,750		104,702
Marui Co. Ltd.		3,469		34,251
Matsushita Electric Industrial Co. Ltd.		16,787		347,866
Matsushita Electric Works Ltd.		3,429		37,969
Mazda Motor Corp.		4,545		22,702
Mediceo Paltac Holdings Co. Ltd.		1,703		25,229
Millea Holdings, Inc.		6,470		218,340
Minebea Co.		3,817		24,498
Mitsubishi Chemical Holdings (a)		10,489		80,558
Mitsubishi Electric Corp.		16,054		167,847
Mitsubishi Estate Co. Ltd.		9,527		229,828
Mitsubishi Gas Chemical Co. Ltd.		3,589		35,339
Mitsubishi Heavy Industries Ltd.		28,616		123,209
Mitsubishi Materials Corp.		10,164		43,489
Mitsubishi Motors Corp. (a)		12,791		21,640
Mitsubishi Rayon Co. Ltd.		4,313		20,964
Mitsubishi UFJ Financial Group, Inc.		63,102		591,396
Mitsubishi Corp.		11,722		321,079
Mitsui & Co. Ltd.		15,655		331,415
Mitsui Chemicals, Inc.		6,732		44,231
Mitsui Engineering & Shipbuilding Co.		8,369		32,662
Mitsui Fudosan Co. Ltd.		6,615		143,888
Mitsui Mining & Smelting Co. Ltd.		5,676		22,762
Mitsui OSK Lines Ltd.		9,634		122,974
Mitsui Sumitomo Insurance Co. Ltd.		9,817		95,608
Mitsukoshi Ltd.		4,803		21,841
Mitsumi Electric		633		21,532
Mizuho Financial Group, Inc.		76		363,282
Murata Manufacturing Co. Ltd.		1,827		105,975
Namco Bandai Holdings, Inc.		2,161		33,794
NEC Corp.		15,516		71,528
NGK Insulators Ltd.		2,443		66,260
NGK Spark Plug Co. Ltd.		2,056		35,998
Nidec Corp.		961		71,227
Nikko Cordial Corp.		3,173		47,205
Nikon Corp.		3,040		105,311
Nintendo Co. Ltd.		763		456,919
Nippon Building Fund, Inc.		4		56,214
Nippon Electric Glass Co. Ltd.		2,850		46,584
Nippon Express Co. Ltd.		6,913		35,581
Nippon Mining Holdings, Inc.		8,558		54,850

	SHARES		VALUE
Japan - 19.4% (Continued)
Nippon Oil Corp.		10,537	$	85,737
Nippon Paper Group, Inc.		8		24,061
Nippon Sheet Glass Co. Ltd.		6,480		33,121
Nippon Steel Corp.		46,039		285,181
Nippon Telegraph & Telephone Corp.		44		220,167
Nippon Yusen KK		11,680		92,842
Nipponkoa Insuranance Co.		3,472		31,607
The Nishi-Nippon City Bank Ltd.		8,514		21,339
Nissan Chemical Industries, Ltd.		1,763		23,056
Nissan Motor Co. Ltd.		17,903		197,115
Nisshin Steel Co.		6,396		22,500
Nissin Food Products Co. Ltd.		964		31,151
Nitori Co. Ltd.		482		23,126
Nitto Denko Corp.		1,373		72,758
NOK Corp.		1,195		25,405
Nomura Holdings, Inc.		13,767		233,527
Nomura Real Estate		2		18,977
Nomura Research Institute Ltd.		1,006		33,139
NSK Ltd.		5,019		52,385
NTN Corp.		4,093		35,575
NTT Data Corp.		11		48,937
NTT DoCoMo, Inc.		125		208,119
NTT Urban Development Corp.		12		19,442
Obayashi Corp.		4,691		23,599
Odakyu Electric Railway Co. Ltd.		6,515		41,464
OJI Paper Co. Ltd.		7,271		35,732
Olympus Corp.		2,017		83,414
Omron Corp.		1,876		44,753
Oriental Land Co. Ltd.		578		34,872
ORIX Corp.		761		130,041
Osaka Gas Co. Ltd.		16,492		65,103
OSAKA Titanium Technologies		161		12,019
Otsuka Corp.		132		11,331
Promise Co. Ltd.		851		21,177
Rakuten, Inc.		47		23,139
Resona Holdings, Inc.		50		89,961
Ricoh Co. Ltd.		5,714		105,621
Rohm Co. Ltd.		916		79,944
Sankyo Co. Ltd.		535		24,855
Sanyo Electric Co. Ltd. (a)		12,428		17,132
Sapporo Hokuyo Holdings		4		35,662
Sapporo Holdings		2,950		23,766
SBI E*Trade Securities Co. Ltd.		12		11,171
SBI Holdings, Inc.		80		21,877
Secom Co. Ltd.		1,900		103,916
Sega Sammy Holdings, Inc.		1,870		23,317
Seiko Epson Corp.		1,051		22,814
Sekisui Chemical Co. Ltd.		3,459		23,315
Sekisui House Ltd.		4,003		43,285
Seven & I Holdings Co. Ltd.		6,913		201,731
Sharp Corp.		8,721		156,910
Shimamura Co. Ltd.		237		20,218
Shimano, Inc.		623		22,586
Shimizu Corp.		5,532		24,165
Shin-Etsu Chemical Co. Ltd.		3,516		220,940
Shinko Securities Co. Ltd.		5,297		21,906
Shinsei Bank Ltd.		17,072		62,350
Shionogi & Co. Ltd.		2,486		43,950

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 - 19.4% (Continued)
Shiseido Co. Ltd.		3,037	$	71,905
The Shizuoka Bank Ltd.		5,031		55,257
Showa Denko KK		10,659		38,165
SMC Corp.		511		60,928
Softbank Corp.		6,051		125,120
Sojitz Corp.		9,570		34,694
Sompo Japan Insurance, Inc.		7,250		65,611
Sony Financial Holdings		9		34,400
Sony Corp.		7,858		436,106
Stanley Electric Co. Ltd.		1,481		36,987
Sumco Corp.		1,210		34,876
Sumitomo Chemical Co. Ltd.		13,889		123,952
Sumitomo Electric Industries Ltd.		6,953		110,598
Sumitomo Heavy Industries Ltd.		4,768		43,960
Sumitomo Metal Industries Ltd.		36,265		168,478
Sumitomo Metal Mining Co. Ltd.		4,757		81,331
Sumitomo Mitsui Financial Group, Inc.		51		382,106
Sumitomo Realty & Development Co. Ltd.		3,188		78,905
The Sumitomo Trust & Banking Co. Ltd.		10,441		69,909
Sumitomo Corp.		9,251		131,418
Suruga Bank Ltd.		1,942		21,173
Suzuken Co. Ltd.		722		25,787
Suzuki Motor Corp.		1,461		44,073
T&D Holdings, Inc.		1,673		86,409
Taiheiyo Cement Corp.		10,203		24,385
Taisei Corp.		8,093		21,878
Taisho Pharmaceutical Co. Ltd.		1,804		34,719
Takashimaya Co. Ltd.		2,879		34,791
Takeda Pharmaceutical Co. Ltd.		7,487		440,313
Takefuji Corp.		947		23,015
TDK Corp.		1,012		75,369
Teijin Ltd.		8,060		34,559
Terumo Corp.		1,368		72,003
THK Co. Ltd.		1,240		25,141
Tobu Railway Co. Ltd.		9,588		44,801
Toho Co. Ltd.		1,043		23,574
Tohoku Electric Power Co., Inc.		4,003		90,297
Tokuyama Corp.		2,321		23,332
The Tokyo Electric Power Co., Inc.		9,952		257,452
Tokyo Electron Ltd.		1,352		83,021
Tokyo Gas Co. Ltd.		18,730		87,686
Tokyo Steel Manufacturing Co. Ltd.		955		10,651
Tokyo Tatemono Co. Ltd.		3,061		28,989
Tokyu Land Corp.		3,871		33,334
Tokyu Corp.		10,216		67,214
TonenGeneral Sekiyu KK		4,494		44,371
Toppan Printing Co. Ltd.		5,987		58,897
Toray Industries, Inc.		11,590		90,778
Toshiba Corp.		25,768		193,061
Tosoh Corp.		5,072		21,838
Toyo Seikan Kaisha Ltd.		1,334		23,667
Toyoda Gosei Co. Ltd.		666		23,668
Toyota Boshoku Corp.		718		23,330
Toyota Industries Corp.		1,703		69,666
Toyota Motor Corp.		22,458		1,214,218
Toyota Tsusho Corp.		2,122		57,554
Trend Micro, Inc.		896		32,082
Ube Industries Ltd.		10,060		34,309

	SHARES		VALUE
Japan - 19.4% (Continued)
Unicharm Corp.		543	$	34,364
Urban Corporation		1,484		19,859
Ushio, Inc.		1,125		24,773
West Japan Railway Co.		15		74,520
Yahoo Japan Corp.		121		54,156
Yakult Honsha Co.		964		22,306
Yamada Denki Co. Ltd.		711		81,274
Yamaha Motor Co.		1,748		42,325
Yamaha Corp.		1,481		33,872
Yamato Holdings Co. Ltd.		3,439		49,593
Yamato Kogyo Co.		569		23,429
Yaskawa Electric Corp.		1,785		24,351
Yokogawa Electric Corp.		2,151		23,644
				23,007,722
Luxembourg - 0.1%
Millicom International Cellular SA (a)		299		34,604
SES-FDR		1,357		35,712
				70,316
Netherlands - 4.1%
Aegon NV		12,910		228,200
Akzo Nobel NV		2,331		186,727
ASML Holding NV		3,552		112,485
Corio NV		425		34,424
European Aeronautic Defense and Space Co.		3,084		98,431
Fugro NV		451		34,816
Hagemeyer NV		3,501		23,955
Heineken NV		2,391		154,583
ING Groep NV		15,588		609,645
James Hardie Industries NV		4,448		25,191
Koninklijke Ahold NV		10,753		149,825
Koninklijke DSM NV		1,199		56,674
Koninklijke Philips Electronics NV		10,060		434,187
Qiagen NV (a)		1,095		23,726
Randstad Holding NV		568		22,439
Reed Elsevier NV		6,590		131,517
Royal Dutch Shell Plc - Class A		31,778		1,335,364
Royal KPN NV		16,316		296,754
SBM Offshore NV		1,440		45,476
STMicroelectronics NV		6,296		90,210
TNT NV		3,518		145,304
Tomtom (a)		412		31,022
Unilever NV		14,511		533,578
Vedior NV		1,341		33,762
Wolters Kluwer NV		2,683		88,182
				4,926,477
New Zealand - 0.1%
Asciano Group		5,621		34,549
Auckland International Airport Ltd.		11,077		24,806
Fletcher Building Ltd.		5,457		48,293
Telecom Corporation of New Zealand Ltd.		18,018		60,315
				167,963
Norway - 1.1%
Acergy SA		1,780		39,748
Aker Kvearner ASA		1,684		44,815
DNB NOR ASA		7,149		109,279

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
Norway - 1.1% (Continued)
Lighthouse Caledon (a) (c)		198	$	346
Marine Harvest (a)		19,788		12,719
Norsk Hydro ASA		7,239		103,455
Orkla ASA		7,450		144,408
Petroleum Geo - Services		1,323		38,436
Prosafe SE (a)		2,079		36,182
Renewable Energy Corp AS		1,552		78,888
Seadrill Ltd.		2,310		56,369
StatoiHyrdol ASA		11,035		343,456
Storebrand ASA		4,578		47,805
Telenor ASA		7,075		169,062
Yara International ASA		1,539		71,283
				1,296,251
Portugal - 0.3%
Banco Comercial Portugues SA		18,788		80,210
Bco Espirito Santo		2,051		44,980
Electricidade de Portugal SA		17,320		113,193
Portugal Telecom SGPS SA		7,870		102,752
PT Multimedia Servicos		2,615		36,512
Sonae SGPS, SA		12,038		34,848
				412,495
Singapore - 1.0%
CapitaLand Ltd.		15,244		66,400
Capitamall Trust		16,299		39,178
City Developments Ltd.		4,936		48,693
Comfortdelgro Corp.		18,779		23,874
Cosco Corp Singapore		7,678		30,830
DBS Group Holdings Ltd.		9,270		133,307
Fraser and Neave Ltd.		11,915		48,837
Keppel Corp Ltd.		10,392		93,853
Keppel Land Ltd.		4,577		23,148
Oversea-Chinese Banking Corp. Ltd.		24,248		139,648
Parkway Holdings		13,711		37,720
SembCorp Industries Ltd.		9,339		37,630
Singapore Airlines Ltd.		4,773		57,629
Singapore Exchange Ltd.		5,797		54,045
Singapore Press Holdings Ltd.		18,617		58,200
Singapore Telecommunications Ltd.		63,987		177,810
United Overseas Bank Ltd.		11,119		153,717
Venture Corp. Ltd.		2,618		23,280
				1,247,799
Spain - 4.4%
Abertis Infraestructuras SA		2,501		80,591
Acciona SA		250		79,262
Acerinox SA (a)		1,818		44,734
ACS, Actividades de Construccion y Servicios, SA (a)		1,871		111,198
Altadis SA		2,286		166,143
Banco Bilbao Vizcaya Argentaria SA		31,250		765,750
Banco de Sabadell SA (a)		5,066		54,884
Banco Popular Espanol SA (a)		7,979		136,489
Banco Santander Central Hispano SA		53,372		1,154,103
Cintra Concesiones de Infraestructuras de Transporte SA (a)		2,239		33,816
Fomento de Construcciones y Contratas SA		435		32,690
Gamesa Corporacion Tecnologica SA (a)		1,341		62,700
Gas Natural SDG SA		934		54,650
Gestevision Telecinco (a)		1,372		35,124

	SHARES		VALUE
Spain - 4.4% (Continued)
Grupo Ferrovial SA		563	$	39,609
Iberdrola SA (a)		33,441		508,482
Iberia Lineas Aereas de Espana SA		5,082		22,291
Inditex SA		2,065		126,864
Indra Sistemas SA		1,767		48,001
Red Electrica de Espana		923		58,351
Repsol YPF SA		7,231		257,748
Sacyr Vallehermoso SA		815		31,696
Sociedad General de Aguas de Barcelona SA		884		35,581
Sogecable Sa (a)		705		28,243
Telefonica SA		34,924		1,134,569
Union Fenosa SA		1,013		68,410
Zardoya Otis SA		1,126		31,888
				5,203,867
Sweden - 2.3%
Alfa Laval AB		804		45,280
Assa Abloy AB		2,984		59,904
Atlas Copco AB		9,864		147,276
Boliden AB		2,683		33,729
Electrolux AB		2,975		49,942
Getinge AB		1,848		49,608
Hennes & Mauritz AB		4,362		265,572
Husqvarna AB - B Shares		3,351		39,793
Investor AB		2,638		59,999
Lundin Petroleum AB (a)		2,170		22,663
Modern Times Group AB		551		38,790
Nordea Bank AB		17,294		288,983
OMX AB		588		23,790
Sandvik AB		8,242		141,868
Scania AB		2,914		69,433
Securitas AB - Class B		3,536		49,239
Skandinaviska Enskilda Banken AB		3,887		99,533
Skanska AB		3,170		59,837
SKF AB		4,226		71,597
SSAB Svenskt Stal AB		2,229		60,698
Svenska Cellulosa AB		4,786		84,787
Svenska Handelsbanken AB		4,257		136,341
Swedbank AB		1,513		42,839
Swedish Match AB		2,580		61,674
Tele2 AB - B Shares		2,694		53,978
Telefonaktiebolaget LM Ericsson - Class B		124,571		292,578
TeliaSonera AB		18,747		175,485
Volvo AB		12,885		216,305
				2,741,521
Switzerland - 6.7%
ABB Ltd.		17,912		516,088
Actelion Ltd.(a)		768		35,308
Adecco SA		1,100		59,511
Ciba Specialty Chemicals AG		804		37,283
Compagnie Financiere Richemont AG		4,496		308,563
Credit Suisse Group		8,569		515,434
Geberit AG		349		47,935
Givaudan SA		75		72,274
Holcim Ltd.		1,821		195,104
Julius Baer Holding AG		831		68,703
Kuehne & Nagel International AG		482		46,193

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
Switzerland - 6.7% (Continued)
Lindt & Spruengli		10	$	34,624
Logitech International SA (a)		1,371		50,280
Lonza Group AG		404		49,030
Nestle SA		3,359		1,542,799
Nobel Biocare Holding AG		214		57,273
Novartis AG		19,763		1,084,028
OC Oerlikon Corp. AG (a)		54		22,573
Roche Holding AG		6,261		1,081,704
Schindler Holding AG		581		37,462
SGS SA		49		58,385
Sonova Holding Ag		447		50,498
Straumann Holding AG		84		23,168
Sulzer AG		25		36,766
Swatch Group AG		343		103,386
Swiss Life Holding		314		78,490
Swiss Reinsurance		3,102		220,427
Swisscom AG		217		84,719
Syngenta AG		818		208,447
Synthes, Inc.		558		69,297
UBS AG		16,319		755,302
Zurich Financial Services AG		1,193		350,371
				7,901,425
United Kingdom - 21.4%
3i Group		3,937		78,598
Alliance&leicester		1,686		21,748
AMEC Plc		3,201		53,429
Anglo American		10,806		662,531
Antofagasta		1,565		22,337
ARM Holdings Plc		13,804		34,073
AstraZeneca Plc		12,841		553,148
Aviva Plc		23,006		308,206
BAE Systems Plc		31,081		308,113
Balfour Beatty Plc		3,799		37,604
Barclays Plc		55,017		551,966
Barratt Developments Plc		2,633		23,874
Berkeley Group Holdings (a)		916		24,616
BG Group Plc		28,465		651,619
BHP Billiton Plc		19,698		606,201
BP Plc		161,172		1,973,103
Brambles Ltd.		11,941		120,889
British Airways Plc (a)		5,404		33,321
British American Tobacco Plc		12,978		507,639
British Energy Group		9,024		98,618
British Land Co.		4,498		84,613
British Sky Broadcasting Group Plc		10,867		133,901
BT Group Plc		70,966		385,301
Bunzl Plc		3,468		48,980
Burberry Group Plc		4,275		48,464
Cable & Wireless Plc		21,980		81,382
Cadbury Schweppes Plc		17,631		217,948
Capita Group Plc		5,695		79,133
Carnival Plc		1,390		61,398
Carphone Warehouse		3,252		22,301
Centrica Plc		30,385		216,988
Charter Plc (a)		749		11,831
Cobham Plc		11,780		49,009
Compass Group Plc		16,454		101,044

	SHARES		VALUE
United Kingdom - 21.4% (Continued)
Daily Mail & General Trust		3,285	$	32,483
De La Rue Plc		1		18
Diageo Plc		22,952		493,434
DSG International Plc		16,003		31,617
Emap Plc		2,080		38,092
Enterprise Inns Plc		5,931		57,497
FirstGroup Plc		4,322		70,118
Friends Provident Plc		15,167		49,333
G4S		10,922		53,212
GKN Plc		5,908		33,165
GlaxoSmithKline Plc		46,455		1,182,736
Hammerson Plc		2,887		58,906
Hays Plc		15,154		34,841
HBOS Plc		31,604		462,396
Home Retail Group Plc		8,370		54,649
HSBC Holdings Plc		102,344		1,715,376
ICAP Plc		4,332		62,648
Imperial Chemical Industries Plc (c)		10,467		138,974
Imperial Tobacco Group Plc		5,720		308,795
Inchcape		4,460		33,604
Intercontinental Hotels Group		2,549		44,857
International Power Plc		12,574		113,510
Invensys Plc (a)		7,520		33,980
Investec Plc		3,568		31,979
ITV Plc		35,207		59,851
J Sainsbury Plc		13,225		111,950
Johnson Matthey Plc		2,071		77,545
Kazakhmys Plc		894		24,398
Kelda Group Plc		2,694		58,185
Kesa Electricals Plc		7,480		34,768
Kingfisher Plc		23,052		66,812
Ladbrokes Plc		7,650		49,225
Land Securities Group Plc		4,356		130,586
Legal & General Group Plc		56,354		146,505
Liberty International Plc		2,665		57,134
Lloyds TSB Group Plc		47,771		448,840
LogicaCMG Plc		15,089		35,368
London Stock Exchange Group		1,297		51,094
Lonmin		721		44,392
Man Group		14,949		169,325
Marks & Spencer Group Plc		15,943		177,723
Meggitt Plc		7,662		50,751
Mitchells & Butlers Plc		4,486		37,863
Mondi Ltd.		0		4
Mondi Plc		3,027		25,604
Morrison(w)suprmkt		11,100		71,148
National Express Group Plc		1,629		40,274
National Grid Plc		22,205		368,639
Next Plc		2,042		66,013
Old Mutual Plc		46,132		153,908
Pearson Plc		7,182		104,651
Persimmon Plc		3,059		48,714
Provident Financial Plc		1		8
Prudential Plc		21,565		305,643
Punch Taverns Plc		2,954		44,955
Reckitt Benckiser Group PLC		5,030		291,771
Reed Elsevier Plc		10,641		143,932
Rentokil Initial Plc		15,883		38,225

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
United Kingdom - 21.4% (Continued)
Resolution Plc		5,772	$	81,807
Reuters Group Plc		10,932		138,619
Rexam Plc		6,157		51,292
Rio Tinto Plc		8,216		869,585
Rolls-Royce Group Plc (a)		15,915		172,975
Royal & Sun Alliance Insurance Group		28,677		84,599
Royal Bank of Scotland Group Plc		81,995		724,695
Royal Dutch Shell Plc - Class B		24,292		1,010,635
SABMiller Plc		7,751		218,477
Sage Group Plc		11,447		52,409
Schroders		1,334		34,574
Scottish & Newcastle Plc		7,070		104,356
Scottish & Southern Energy Plc		7,312		238,416
Segro Plc		4,089		38,257
Serco Group		5,127		47,176
Severn Trent Plc		2,268		68,894
Shire Plc		2,495		57,066
Signet Group Plc		27,662		38,407
Smith & Nephew Plc		8,196		94,627
Smiths Group Plc		3,323		67,008
Stagecoach Group		5,074		28,785
Standard Chartered Plc		5,032		184,708
Standard Life Plc		17,670		88,902
Tate & Lyle Plc		3,947		34,963
Taylor Woodrow Plc		9,295		37,607
Tesco Plc		65,978		626,802
Thomas Cook Group Plc (a)		4,538		25,474
Tomkins Plc		9,642		33,924
Travis Perkins Plc		1,413		33,865
TUI Travel Plc (a)		6,576		38,453
Tullow Oil		5,342		69,279
Unilever Plc		11,159		419,829
United Business Media Plc		2,835		36,653
United Utilities Plc		7,840		117,984
Vedanta Resources		522		21,260
Vodafone Group Plc		471,529		1,762,743
Whitbread Plc		2,142		59,694
William Hill Plc		3,535		36,908
Wolseley Plc		6,006		88,710
WPP Group Plc		9,682		124,697
Xstrata Plc		4,899		346,195
Yell Group Plc		7,261		57,960
				25,355,219
TOTAL COMMON STOCKS
(Cost $96,929,938)				117,711,916

	SHARES		VALUE
UNIT INVESTMENT TRUSTS - 0.3%
iShares MSCI EAFE Index Fund		4,322	$	339,277
TOTAL UNIT INVESTMENT TRUSTS
(Cost $305,539)				339,277
PREFERRED STOCKS - 0.4%
Germany - 0.4%
Henkel KGaA		2,300		129,229
Porsche Automobile Holding AG		75		151,968
ProSiebenSat.1 Media AG		916		21,950
Volkswagen AG		895		130,854
				434,001
TOTAL PREFERRED STOCKS
(Cost $361,152)				434,001
RIGHTS - 0.0%
Wharf Holdings Ltd.
Issued by Wharf Holdings Ltd., Exp.1/8/2008, Strike $30 (a)		1,273		1,747
Dowa Mining Co. Ltd.
Issued by Mizuho International Plc, Exp. 1/29/2010,
Strike $1 (a) (c)		1,805		632
TOTAL RIGHTS
(Cost $1,492)				2,379
SHORT TERM INVESTMENTS - 0.3%
Money Market Funds - 0.3%
Northern Institutional Diversified Assets Portfolio		412,676		412,676
TOTAL SHORT TERM INVESTMENTS
(Cost $412,675)				412,676
Total Investments (Cost $98,010,796) (b) - 100.2%				118,900,249
Liabilities in Excess of Other Assets - (0.2)%				(268,447	)
TOTAL NET ASSETS - 100.0%			$	118,631,802

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

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

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value	$	118,900,249
Cash denominated in foreign currencies		23,605
Cash		6,628
Receivables:
Shares sold		70,395
Interest and dividends		194,884
Investments sold		573,779
Prepaid expenses and other		1,694
		119,771,234
LIABILITIES
Payables:
Shares redeemed		941,908
Advisory fees		67,774
Fund accounting fees		62,392
Professional fees		21,531
Royalty fees		12,947
Custodian fees		11,704
Administration fees		10,185
Directors’ fees		125
Other accrued expenses		10,866
		1,139,432
NET ASSETS*
Paid-in capital		95,138,112
Accumulated undistributed net
investment income / (loss)		1,007,403
Accumulated net realized gain / (loss)
on investments and foreign
currency translations		1,594,213
Net unrealized appreciation / (depreciation)
on investments and foreign
currency translations		20,892,074
	$	118,631,802
Investments at cost	$	98,010,796
Cash denominated in foreign currencies at cost		23,831
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	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$118,630,776	1,132,344	$	104.77
Class F	$1,026	10	$	104.76	**

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2007
	Percentage of ordinary distributions designated as
	qualified dividend income		86.82%
	Undistributed ordinary income	$	1,295,832
	Undistributed long-term gains	$	1,901,539
	Unrealized appreciation	$	20,277,646
**	NAV does not recalculate due to fractional shares outstanding.

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Dividends	$	1,928,158
Foreign dividend taxes withheld		(158,041	)
Other income		1,051
		1,771,168
EXPENSES
Advisory fees		407,759
Custodian fees		189,733
Fund accounting fees		156,446
Administration fees		72,814
Professional fees		30,321
Royalty fee		24,267
Transfer agent fees		15,990
Directors’ fees		9,407
Shareholder reporting fees		8,343
Other expenses		5,571
		920,651	��
Reimbursements and waivers		(228,917	)
		691,734
NET INVESTMENT INCOME / (LOSS)		1,079,434
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments
and foreign currency translations		2,131,638
Net change in unrealized appreciation /
(depreciation) on investments and
foreign currency translations		(475,273	)
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		1,656,365
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	2,735,799

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory Fee	Administration Fee	Class I Expense Limit(1)	Class F Expense Limit(1)	Reimbursements and Waivers
0.30%	0.10%	0.60%	0.80%

(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% for the I shares and 1.15% for the F shares of the average daily net assets of each respective share class until May 1, 2009.

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

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

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2007			2006
OPERATIONS
Net investment income / (loss)	$	1,079,434		$	877,818
Net realized gain / (loss) on investments and foreign currency translations		2,131,638			1,280,245
Net change in unrealized appreciation / (depreciation) on investments and
foreign currency translations		(475,273	)		10,070,223
		2,735,799			12,228,286
DISTRIBUTIONS TO SHAREHOLDERS (1)
Class I
Net investment income		(895,891	)		(898,476	)
Net realized gain on investments		(1,341,924	)		(1,089,408	)
Class F (2)
Net investment income		—			—
Net realized gain on investments		—			—
		(2,237,815	)		(1,987,884	)
FUND SHARE TRANSACTIONS
Class I
Proceeds from shares sold		78,722,812			16,521,253
Reinvestment of distributions		2,237,815			1,987,884
Payments for shares redeemed		(21,581,983	)		(14,078,992	)
		59,378,644			4,430,145
Class F (2)
Proceeds from shares sold		1,000			—
Reinvestment of distributions		—			—
Payments for shares redeemed		—			—
		1,000			—
NET INCREASE / (DECREASE) IN NET ASSETS		59,877,628			14,670,547
NET ASSETS
Beginning of period		58,754,174			44,083,627
End of period	$	118,631,802		$	58,754,174
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	1,007,403		$	807,040

FUND SHARE TRANSACTIONS Class I
Sold		723,184			184,761
Reinvestment of distributions		22,385			23,882
Redeemed		(208,760	)		(150,829	)
Net increase / (decrease) from fund share transactions		536,809			57,814
FUND SHARE TRANSACTIONS Class F(2)
Sold		10			—
Reinvestment of distributions		—			—
Redeemed		—			—
Net increase / (decrease) from fund share transactions		10			—
TOTAL COST OF PURCHASES OF:
Preferred and Common Stocks	$	91,683,042		$	26,940,948
	$	91,683,042		$	26,940,948
TOTAL PROCEEDS FROM SALES OF:
Preferred and Common Stocks	$	33,858,535		$	23,378,114
	$	33,858,535		$	23,378,114
(1)TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income(3)	$	1,672,255		$	1,827,354
Long-term capital gains		565,560			160,530
	$	2,237,815		$	1,987,884
(2)Class F Shares have been offered since 10/1/07.
(3) The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions
under Internal Revenue Section 871 (k)(2)(C) is 46.43%

 

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
7.43%	4.18%	3.74%

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 Kevin P. Aug
Inception Date:	April 1, 2003
Total Net Assets:	$44.50 Million
Number Of Fixed Income Holdings:	98
Effective Duration:	4.43 years
Average Maturity:	14.70 years
Average Credit Quality:	Aaa/AAA
30-day SEC Yield:	4.09%

Quality Breakdown  Sector Allocations

	(% of portfolio)
AAA AA A BBB	81% 1% 13% 5%

 

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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 period ended December 31, 2007, the Summit Lehman Aggregate Bond Index Portfolio’s total return was 7.43% (before the impact of any product or contract-level fees). This compares to a 6.97% total return for the Lehman Aggregate Bond Index. The difference of 0.46% 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
Computed on the basis of a share of capital stock outstanding throughout the period.
	Year Ended December 31,
		2007			2006			2005			2004			2003(1)
Net asset value, beginning of period		$	48.85		$	49.06		$	50.13		$	49.78		$	50.00
INVESTMENT ACTIVITIES:
Net investment income / (loss)			2.13			1.97			1.83			1.71	(2)		1.32
Net realized and unrealized gains / (losses)			1.40			(0.24	)		(1.06	)		0.03			(0.49	)
Total from Investment Activities			3.53			1.73			0.77			1.74			0.83
DISTRIBUTIONS:
Net investment income			(2.11	)		(1.94	)		(1.84	)		(1.39	)		(1.05	)
Total Distributions			(2.11	)		(1.94	)		(1.84	)		(1.39	)		(1.05	)
Net asset value, end of period		$	50.27		$	48.85		$	49.06		$	50.13		$	49.78
Total return			7.43	%		3.64	%		1.57	%		3.55	%		1.70	%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets - net(3)			0.59	%		0.59	%		0.60	%		0.60	%		0.60	%(4)
Ratio of expenses to average net assets - gross			0.59	%		0.59	%		0.63	%		0.71	%		1.10	%(4)
Ratio of net investment income / (loss) to average net assets			4.24	%		3.96	%		3.54	%		3.26	%		2.83	%(4)
Portfolio turnover rate			23.61	%		27.93	%		15.93	%		43.24	%		31.94	%(4)
Net assets, end of period (000’s)		$	44,496		$	39,160		$	37,657		$	32,786		$	10,296

⁽¹⁾ Portfolio commenced operations on April 1, 2003.

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

⁽³⁾ Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

⁽⁴⁾ Annualized.

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, 2007
	PRINCIPAL
	AMOUNT		VALUE
U.S. TREASURY OBLIGATIONS - 28.9%
U.S. Treasury Bonds - 7.4%
6.250%, 08/15/2023 (d)	$	400,000	$	478,906
5.500%, 08/15/2028 (d)		500,000		566,172
5.250%, 11/15/2028 (d)		1,100,000		1,210,257
5.250%, 02/15/2029 (d)		725,000		797,557
6.125%, 08/15/2029 (d)		200,000		244,672
				3,297,564
U.S. Treasury Notes - 21.5%
5.625%, 05/15/2008 (d)		300,000		302,414
3.125%, 10/15/2008 (d)		500,000		499,141
3.375%, 12/15/2008 (d)		196,000		196,245
5.500%, 05/15/2009 (d)		200,000		206,500
6.000%, 08/15/2009 (d)		750,000		784,277
6.500%, 02/15/2010 (d)		600,000		641,578
4.000%, 04/15/2010 (d)		250,000		255,078
5.750%, 08/15/2010		300,000		320,109
4.250%, 01/15/2011 (d)		950,000		982,063
4.750%, 01/31/2012		250,000		263,516
4.500%, 04/30/2012 (d)		200,000		208,922
4.875%, 06/30/2012 (d)		200,000		212,125
4.000%, 11/15/2012 (d)		500,000		513,476
3.875%, 02/15/2013 (d)		1,500,000		1,530,000
3.625%, 05/15/2013 (d)		300,000		302,062
4.000%, 02/15/2014 (d)		500,000		510,821
4.000%, 02/15/2015 (d)		650,000		659,192
4.875%, 08/15/2016 (d)		750,000		798,633
4.625%, 02/15/2017 (d)		350,000		365,914
				9,552,066
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $12,363,714)				12,849,630
SOVEREIGN GOVERNMENT BONDS - 0.7%
Province of New Brunswick
6.750%, 08/15/2013		100,000		113,819
Republic of Italy
2.500%, 07/15/2008		200,000		197,646
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $309,880)				311,465
MORTGAGE BACKED SECURITIES - 41.8%
Bank of America Commercial Mortgage, Inc.
Series 2006-5, 5.390%, 09/10/2047		690,000		689,821
Bear Stearns Commercial Mortgage Securities, Inc.
Series 2000-WF2, 7.110%, 10/15/2032		54,301		54,516
Series 2003-TOP12, 4.240%, 08/13/2039		350,000		346,894
Series 2004-PWR5, 4.254%, 07/11/2042		580,000		576,733
Fannie Mae Pool
Pool #615009, 5.000%, 12/01/2016		1,122,985		1,125,440
Pool #639917, 5.000%, 11/01/2017		167,638		168,042
Pool #727360, 5.500%, 08/01/2018		422,296		428,572
Pool #828624, 5.000%, 06/01/2020		525,894		526,410
Pool #211487, 6.500%, 04/01/2023		67,294		70,499
Pool #653650, 6.500%, 08/01/2032		407,536		419,361
Pool #555591, 5.500%, 07/01/2033		664,413		664,906
Pool #722267, 5.500%, 07/01/2033		837,370		837,991
Pool #732114, 6.000%, 08/01/2033		113,600		115,587
Pool #357457, 5.500%, 11/01/2033		764,726		765,293
Pool #840633, 6.000%, 06/01/2034		599,009		610,983
Pool #801322, 5.000%, 10/01/2034		964,977		942,604
Pool #824839, 5.500%, 06/01/2035		1,555,815		1,554,865
Pool #256101, 5.500%, 02/01/2036		663,520		663,116
Pool #903724, 7.500%, 11/01/2036		713,651		741,481

	PRINCIPAL
	AMOUNT		VALUE
MORTGAGE BACKED SECURITIES - 41.8% (Continued)
Freddie Mac (Gold) Pool
Pool #E9-6460, 5.000%, 05/01/2018	$	1,116,127	$	1,118,877
Pool #E9-9160, 4.500%, 09/01/2018		427,365		420,238
Pool #G1-1798, 5.000%, 11/01/2020		731,317		732,034
Pool #C7-6658, 5.000%, 02/01/2033		1,107,517		1,082,257
Pool #G0-8146, 6.000%, 08/01/2036		994,923		1,009,883
Pool #A6-6783, 6.000%, 10/01/2037		1,880,881		1,908,970
Ginnie Mae Pool
Pool #003583M, 5.500%, 07/20/2034		833,124		835,032
J.P. Morgan Chase Commercial Mortgage Backed Security Corp.
Series 2001-C1, 5.464%, 10/12/2035		183,927		185,252
TOTAL MORTGAGE BACKED SECURITIES
(Cost $18,656,851)				18,595,657
ASSET BACKED SECURITIES - 0.3%
Residential Asset Securities Corp.
Series 2003-KS4, 4.610%, 06/25/2033		132,750		118,201
TOTAL ASSET BACKED SECURITIES
(Cost $131,199)				118,201
U.S. GOVERNMENT AGENCY ISSUES - 8.3%
Fannie Mae
5.050%, 02/07/2011		1,300,000		1,353,392
Federal Farm Credit Bank
4.250%, 02/01/2012		750,000		760,627
Freddie Mac
5.750%, 03/15/2009		200,000		204,397
7.000%, 03/15/2010		1,300,000		1,393,265
TOTAL U.S. GOVERNMENT AGENCY ISSUES
(Cost $3,596,828)				3,711,681
CORPORATE BONDS - 18.6%
Consumer Discretionary - 1.4%
EW Scripps Co.
5.750%, 07/15/2012		180,000		188,151
Johnson Controls, Inc.
5.250%, 01/15/2011		200,000		200,564
TCI Communications, Inc.
8.750%, 08/01/2015		100,000		116,321
The Thomson Corp.
6.200%, 01/05/2012		100,000		104,308
				609,344
Consumer Staples - 1.4%
Campbell Soup Co.
5.875%, 10/01/2008 (d)		230,000		232,250
Cargill Inc.
5.000%, 11/15/2013 (a) (d)		250,000		245,782
Diageo Capital PLC
3.375%, 03/20/2008 (d)		136,000		135,743
				613,775
Energy - 3.2%
Apache Corp.
5.625%, 01/15/2017 (d)		100,000		101,876

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

 95

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

	PRINCIPAL
	AMOUNT		VALUE
Energy - 3.2% (Continued)
Colonial Pipeline Co.
7.750%, 11/01/2010 (a)	$	375,000	$	407,913
6.580%, 08/28/2032 (a)		100,000		103,957
Conoco Funding Co.
6.350%, 10/15/2011		80,000		84,971
Devon Financing Corp ULC
6.875%, 09/30/2011		280,000		299,849
Public Service of North Carolina, Inc.
6.625%, 02/15/2011		180,000		188,067
Suncor Energy, Inc.
6.500%, 06/15/2038		250,000		267,305
				1,453,938
Financials - 1.7%
American General Finance Corp.
5.375%, 09/01/2009 (d)		210,000		213,110
Camden Property Trust
5.875%, 11/30/2012		100,000		101,041
General Electric Capital Corp.
6.125%, 02/22/2011		250,000		261,334
The Progressive Corp.
6.375%, 01/15/2012		165,000		175,900
				751,385
Health Care - 1.8%
AstraZeneca PLC
6.450%, 09/15/2037		350,000		383,487
C.R. Bard, Inc.
6.700%, 12/01/2026		250,000		262,975
Eli Lilly & Co.
2.900%, 03/15/2008 (d)		100,000		99,672
Pharmacia Corp.
5.875%, 12/01/2008 (e)		50,000		50,747
				796,881
Industrials - 5.0%
Chevron Phillips Chemical Company LLC
7.000%, 03/15/2011		200,000		215,056
CSX Corp.
4.875%, 11/01/2009		180,000		180,492
Deere & Co.
6.550%, 10/01/2028		250,000		269,894
Eaton Corp.
5.750%, 07/15/2012		439,000		451,655
Emerson Electric Co.
4.750%, 10/15/2015 (d)		200,000		194,103
Honeywell International, Inc.
7.500%, 03/01/2010 (d)		108,000		114,943
Lockheed Martin Corp.
7.200%, 05/01/2036		150,000		175,121
Masco Corp.
5.875%, 07/15/2012		180,000		184,508

	PRINCIPAL
	AMOUNT		VALUE
Industrials - 5.0% (Continued)
Pitney Bowes, Inc.
4.625%, 10/01/2012	$	180,000	$	182,089
United Technologies Corp.
4.375%, 05/01/2010		250,000		250,709
				2,218,570
Information Technology - 1.1%
Cisco Systems, Inc.
5.250%, 02/22/2011		250,000		256,315
Oracle Corp / Ozark Holdings, Inc.
5.250%, 01/15/2016		250,000		249,509
				505,824
Materials - 1.5%
Alcoa, Inc.
5.720%, 02/23/2019		149,000		146,463
Westvaco Corp.
7.950%, 02/15/2031		500,000		529,522
				675,985
Telecommunication Services - 1.0%
GTE Corp.
7.510%, 04/01/2009		180,000		185,211
6.940%, 04/15/2028		80,000		85,692
Sprint Capital Corp.
6.875%, 11/15/2028		180,000		170,705
				441,608
Utilities - 0.5%
Exelon Generation Co. LLC
5.350%, 01/15/2014		230,000		223,835
TOTAL CORPORATE BONDS
(Cost $8,412,799)				8,291,145

	SHARES		VALUE
SHORT TERM INVESTMENTS - 0.8%
Money Market Funds - 0.8%
Northern Institutional Diversified Assets Portfolio		363,316	$	363,316
TOTAL SHORT TERM INVESTMENTS
(Cost $363,316)				363,316
Total Investments (Cost $43,834,587) (b) - 99.4%				44,241,095
Northern Institutional Liquid Assets Portfolio (c) - 18.1%				8,069,433
Liabilities in Excess of Other Assets - (17.5)%				(7,814,906	)
TOTAL NET ASSETS - 100.0%			$	44,495,622

(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 $43,834,686 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $777,249 and ($370,840), respectively, with a net appreciation / (depreciation) of $406,409.

^(c) 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 $12,683,650, $8,069,433, and $5,022,246, respectively.

(d) All or a portion of this security is out on loan.

(e) Variable rate security.

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

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

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value	$	44,241,095
Collateral for securities loaned, at fair value		8,069,433
Receivables:
Shares sold		34,195
Securities sold		577,320
Interest and dividends		490,811
Prepaid expenses and other		1,126
		53,413,980
LIABILITIES
Payables:
Investment securities purchased		512,423
Payable upon return of securities loaned		8,069,433
Shares redeemed		283,594
Professional fees		16,672
Fund accounting fees		11,561
Advisory fees		11,420
Administration fees		3,807
Custodian fees		1,084
Directors’ fees		101
Other accrued expenses		8,263
		8,918,358
NET ASSETS*
Paid-in capital		44,185,685
Accumulated undistributed net investment
income / (loss)		281,959
Accumulated net realized gain / (loss)
on investments		(378,530	)
Net unrealized appreciation / (depreciation)
on investments		406,508
	$	44,495,622
Investments at cost	$	43,834,587
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$44,495,622	885,136	$	50.27

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2006
	Percentage of ordinary distributions designated as
	qualified dividend income		2.08%
	Dividends received deduction for corporate shareholders		2.10%
	Undistributed ordinary income	$	281,959
	Unrealized appreciation	$	406,409
Capital Loss Carryforward Expiring December 31:

2011  2012  2013 2014

$(27,690)  $(58,001)  $(75,489) $(217,251)

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Interest	$	1,917,658
Dividends		76,774
Other income		17,042
		2,011,474
EXPENSES
Advisory fees		124,795
Administration fees		41,598
Fund accounting fees		27,048
Professional fees		20,871
Transfer agent fees		14,283
Directors’ fees		4,910
Shareholder reporting fees		4,441
Custodian fees		4,143
Other expenses		3,976
		246,065
NET INVESTMENT INCOME / (LOSS)		1,765,409
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		120,051
Net change in unrealized appreciation /
(depreciation) on investments		1,151,263
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		1,271,314
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	3,036,723

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.

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

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
	2007			2006
OPERATIONS
Net investment income / (loss)	$	1,765,409		$	1,514,352
Net realized gain / (loss) on investments		120,051			(200,587	)
Net change in unrealized appreciation / (depreciation) on investments		1,151,263			59,639
		3,036,723			1,373,404
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(1,780,425	)		(1,523,171	)
		(1,780,425	)		(1,523,171	)
FUND SHARE TRANSACTIONS
Proceeds from shares sold		11,062,969			7,341,409
Reinvestment of distributions		1,780,425			1,523,171
Payments for shares redeemed		(8,764,517	)		(7,211,808	)
		4,078,877			1,652,772
NET INCREASE / (DECREASE) IN NET ASSETS		5,335,175			1,503,005
NET ASSETS
Beginning of period		39,160,447			37,657,442
End of period	$	44,495,622		$	39,160,447
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	281,959		$	237,576

FUND SHARE TRANSACTIONS
Sold		225,418			151,422
Reinvestment of distributions		36,450			31,573
Redeemed		(178,351	)		(149,030	)
Net increase / (decrease) from fund share transactions		83,517			33,965
TOTAL COST OF PURCHASES OF:
Preferred and Common Stocks	$	499,750		$	2,937,541
U.S. Government Securities		12,149,168			7,459,902
Corporate Bonds		1,379,066			1,561,740
Asset Backed Securities		695,445			—
	$	14,723,429		$	11,959,183
TOTAL PROCEEDS FROM SALES OF:
Preferred and Common Stocks	$	1,653,429		$	2,454,252
U.S. Government Securities		5,822,943			6,156,872
Corporate Bonds		1,245,191			1,773,733
Asset Backed Securities		891,647			—
	$	9,613,210		$	10,384,857
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	1,780,425		$	1,523,171
	$	1,780,425		$	1,523,171

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

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Summit Mutual Funds, Inc. – Pinnacle Series

INFLATION PROTECTED PLUS PORTFOLIO

Summit Inflation Portfolio - Total Return
1-Year	Since Inception
10.80%	10.90%

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:	December 28, 2006
Total Net Assets:	$1.16 Million
Number of Fixed
Income Holdings:	10
Effective Duration:	5.41 years
Average Maturity:	9.79 years
Average Credit Quality:	GOV/GOV
30-day SEC Yield:	2.99%

Sector Allocations

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Summit Mutual Funds, Inc. – Pinnacle Series

INFLATION PROTECTED PLUS PORTFOLIO

Objective – Seeks to maximize real levels of current income consistent with reasonable investment risk, by investing primarily in inflation adjusted fixed income securities.

Strategy – The Inflation Protected Plus Portfolio (the “Portfolio”) seeks to achieve its objective by investing under normal circumstances at least 80% of the value of its assets in inflation protected fixed income securities. Up to 20% of the Portfolio’s assets may be invested in fixed income securities that are not inflation indexed, including unrated or below investment-grade bonds, convertible debt securities, convertible preferred and preferred stocks, or other securities.

Managers’ Comments:

The Summit Inflation Protected Plus Portfolio had a total return of 10.80% (before the impact of any product or contract level fees) for the year ended December 31, 2007, compared to a total return of 11.64% for the Lehman Brothers U.S. Treasury Inflation Protected Securities (“TIPs”) Index. The primary reason that the Portfolio underperformed the Index is because the Portfolio has expenses and trading costs that the Index does not. In addition, the Portfolio maintains a small cash position to manage cash inflows and outflows of the fund.

Treasury rates in general declined in 2007, as the prospect of a slower economy prompted the Federal Reserve to cut short-term interest rates. In addition, the ongoing credit crunch created a flight to quality in the latter half of 2007, that drove Treasury rates down further. For the year, 10 year Treasury rates declined from 4.70% to 4.02%, while 2 year Treasury rates declined from 4.81% to 3.05%.

The rate of inflation, as measured by the Consumer Price Index for Urban Consumers, rose 4.1% for 2007. This compares to a rate of 2.5% for 2006. The increase in inflation has largely been driven by higher commodity and energy prices. These higher costs have begun to spread into other parts of the economy by affecting component and transportation costs, as well. Core inflation however, which excludes food and energy, advanced at a more moderate 2.4% in 2007.

The difference between the yield on a 10 year Treasury bond and the yield on a 10 year TIPs bond, ranged between 2.0% and 2.5% during 2007, ending the year at about 2.35%. The implication is that the market expects inflation to average a more modest 2.0% to 2.5% over the next 10 years.

The Portfolio is comprised primarily of U.S. Treasury Inflation Protected Securities and maintained an intermediate duration throughout the year. The combination of lower interest rates, higher reported inflation and a modest expectation for future inflation combined to provide a higher return for TIPs than for similar US Treasury securities.

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Summit Mutual Funds, Inc. – Pinnacle Series
INFLATION PROTECTED PLUS PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS
	Year Ended			Period Ended
	December 31,			December 31,
	2007			2006(1)
Net asset value, beginning of period	$	50.09		$	50.00
INVESTMENT ACTIVITIES:
Net investment income / (loss)		2.64			—
Net realized and unrealized gains / (losses)		2.59			0.09
Total from Investment Activities		5.23			0.09
DISTRIBUTIONS:
Net investment income		(2.32	)		—
Total Distributions		(2.32	)		—
Net asset value, end of period	$	53.00		$	50.09
Total return		10.80	%		0.18	%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net (2)		0.75	%		0.75	%(3)
Ratio of expenses to average net assets – gross		5.27	%		33.70	%(3)
Ratio of net investment income / (loss) to average net assets		5.19	%		(2.28	)%(3)
Portfolio turnover rate		8.46	%		0.00	%
Net assets, end of period (000’s)	$	1,157		$	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 financial statements.

 101

Summit Mutual Funds, Inc. – Pinnacle Series
SCHEDULE OF INVESTMENTS	INFLATION PROTECTED PLUS PORTFOLIO

DECEMBER 31, 2007
	PRINCIPAL
	AMOUNT		VALUE
U.S. TREASURY OBLIGATIONS (b) - 93.7%
U.S. TREASURY NOTES & BONDS
U.S. Treasury Bonds - 27.5%
2.375%, 01/15/2027	$	31,080	$	32,867
3.875%, 04/15/2029		216,046		285,856
				318,723
U.S. Treasury Notes - 66.2%
3.875%, 01/15/2009		50,956		52,461
4.250%, 01/15/2010		62,089		66,250
0.875%, 04/15/2010		55,141		54,955
3.500%, 01/15/2011		72,023		77,459
3.000%, 07/15/2012		81,338		88,093
2.000%, 01/15/2014		180,910		186,861
1.875%, 07/15/2015		171,854		175,171
2.000%, 01/15/2016		63,157		64,815
				766,065
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,027,689)				1,084,788
	SHARES		VALUE
SHORT TERM INVESTMENTS - 5.8%
Money Market Funds - 5.8%
Northern Institutional Diversified Assets Portfolio		66,450	$	66,450
TOTAL SHORT TERM INVESTMENTS
(Cost $66,450)				66,450
Total Investments (Cost $1,094,139) (a) - 99.5%				1,151,238
Other Assets in Excess of Liabilities - 0.5%				6,111
TOTAL NET ASSETS - 100.0%			$	1,157,349

(a) For federal income tax purposes, cost is $1,094,139 and gross unrealized appreciation and depreciation of securities as of December 31, 2007, was $57,099 and $0 respectively, with a net appreciation / (depreciation) of $57,099.

(b) Inflation protected security.

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

102

Summit Mutual Funds, Inc. – Pinnacle Series
INFLATION PROTECTED PLUS PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value	$	1,151,238
Receivables:
Interest and dividends		10,631
Receivable from adviser		24,589
Prepaid expenses and other		20
		1,186,478
LIABILITIES
Payables:
Shares redeemed		46
Professional fees		17,303
Fund accounting fees		6,027
Transfer agent fees		5,486
Custodian fees		31
Directors’ fees		2
Other accrued expenses		234
		29,129
NET ASSETS*
Paid-in capital		1,094,008
Accumulated undistributed net investment
income / (loss)		7,007
Accumulated net realized gain / (loss)
on investments		(765	)
Net unrealized appreciation / (depreciation)
on investments		57,099
	$	1,157,349
Investments at cost	$	1,094,139
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$1,157,349	21,838	$	53.00

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2006
	Undistributed ordinary income	$	7,007
	Unrealized appreciation	$	57,099
Capital Loss Carryforward Expiring December 31:

 2015

 $(765)

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Interest	$	61,035
Dividends		910
		61,945
EXPENSES
Professional fees		19,100
Fund accounting fees		15,433
Transfer agent fees		13,152
Advisory fees		5,216
Administration fees		1,043
Custodian fees		271
Directors’ fees		132
Shareholder reporting fees		111
Other expenses		549
		55,007
Reimbursements and waivers		(47,184	)
		7,823
NET INVESTMENT INCOME / (LOSS)		54,122
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		(765	)
Net change in unrealized appreciation /
(depreciation) on investments		55,056
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		54,291
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	108,413

TRANSACTIONS WITH AFFILIATES:
Percent of Current
Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit	and Waivers
0.50%	0.10%	0.75%	$47,184

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

 103

Summit Mutual Funds, Inc. – Pinnacle Series
FINANCIAL STATEMENTS	INFLATION PROTECTED PLUS PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended December 31,
	2007			2006(1)
OPERATIONS
Net investment income / (loss)	$	54,122		$	(188	)
Net realized gain / (loss) on investments		(765	)		—
Net change in unrealized appreciation / (depreciation) on investments		55,056			2,043
		108,413			1,855
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(47,115	)		—
		(47,115	)		—
FUND SHARE TRANSACTIONS
Proceeds from shares sold		47,188			1,000,000
Reinvestment of distributions		47,115			—
Payments for shares redeemed		(107	)		—
		94,196			1,000,000
NET INCREASE / (DECREASE) IN NET ASSETS		155,494			1,001,855
NET ASSETS
Beginning of period		1,001,855			—
End of period	$	1,157,349		$	1,001,855
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME	$	7,007		$	—

FUND SHARE TRANSACTIONS
Sold		898			20,000
Reinvestment of distributions		942			—
Redeemed		(2	)		—
Net increase / (decrease) from fund share transactions		1,838			20,000
TOTAL COST OF PURCHASES OF:
U.S. Government Securities	$	89,067		$	989,624
	$	89,067		$	989,624
TOTAL PROCEEDS FROM SALES OF:
U.S. Government Securities	$	86,777		$	—
	$	86,777		$	—
*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	47,115		$	—
	$	47,115		$	—
(1) Portfolio commenced operations on December 28, 2006.

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

104

Summit Mutual Funds, Inc. – Pinnacle Series
	LIFESTYLE ETF MARKET STRATEGY TARGET PORTFOLIO

Summit ETF Market Target Portfolio - Total Return
1-Year	Since Inception
5.58%	5.20%

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:	James McGlynn
	D. Scott Keller
	Gary R. Rodmaker
	Michael J. Schultz
	Steven R. Sutermeister
Inception Date:	December 28, 2006
Total Net Assets:	$4.68 Million
Number of Equity Holdings:	10

Sector Allocations

 105

Summit Mutual Funds, Inc. – Pinnacle Series

LIFESTYLE ETF MARKET STRATEGY TARGET PORTFOLIO

Objective – 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.

Strategy – The Lifestyle ETF Market Strategy Target Portfolio (the “Portfolio”) is a “fund of funds” that pursues its investment objective through asset allocation and fund selection. Under normal market conditions, substantially all of the value of the Portfolio’s total assets will be invested in ETFs and U.S. Treasury Bills.

Managers’ Comments:

For the year ended December 31, 2007 the Lifestyle ETF Market Strategy Target Portfolio returned 5.58% (before the impact of any product or contract fees and expenses) versus 5.49% for the Standard & Poor’s 500 Stock Index (S&P 500) and 6.22% for the hybrid index (“benchmark”) comprised of 60% of the S&P 500 and 40% of Lehman Brothers Aggregate Bond Index return.

The Lifestyle portfolio underperformed the benchmark for a few reasons. The Lifestyle Fund had a greater exposure to equities than the benchmark throughout a year when domestic equities as a class under-performed fixed income securities. While the exposure to international equities (that out performed domestic equities) did boost overall equity performance for the year, it could not compensate for the relatively weak U.S. equity returns. Portfolio expenses, including the impact of acquired fund fees and expenses, and the timing of cash flows into the Portfolio also impacted performance negatively.

The worst performer in the portfolio was the REIT ETF (exchange traded fund) that declined 17% as the real estate market faced a severe downturn. Fortunately, the Portfolio had only a 1% weighting to this investment, and overall performance was not significantly compromised. The best domestic equity performer was the S&P 500 Growth ETF that returned over 9%. The best fixed income performance came from the Treasury Inflation Protected Securities (TIPS) Fund that returned 12%.

Because there were eleven funds representing different asset classes in the Portfolio, there were multiple re-allocations throughout the year. The chief movement was a gradual decrease of equity exposure and an increasing of exposure to fixed income securities. Currently the Federal Reserve is undertaking a massive effort to inject liquidity to the economy by lowering the Fed Funds interest rate. This action should boost fixed income securities first before the benefit filters down into the equity assets. At the end of the year the weightings in the major categories were as follows: Domestic Equities - 46%; International Equities - 16%; Fixed Income - 35%; and Cash - 3%.

106

Summit Mutual Funds, Inc. – Pinnacle Series
LIFESTYLE ETF MARKET STRATEGY TARGET PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding throughout the period.
	Year Ended December 31,
	2007			2006(1)
Net asset value, beginning of period	$	49.84		$	50.00
INVESTMENT ACTIVITIES:
Net investment income / (loss)		2.33	(2)		—
Net realized and unrealized gains / (losses)		0.45			(0.16	)
Total from Investment Activities		2.78			(0.16	)
DISTRIBUTIONS:
Net investment income		—			—
Net realized gains		—			—
Total Distributions		—			—
Net asset value, end of period	$	52.62		$	49.84
Total return		5.58	%		-0.32	%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets – net (3)		0.75	%		0.75	%(4)
Ratio of expenses to average net assets – gross		4.09	%		220.56	%(4)
Ratio of net investment income / (loss) to average net assets		4.46	%		(0.59	%)(4)
Portfolio turnover rate		17.02	%		0.00	%
Net assets, end of period (000’s)	$	4,686		$	150

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

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

⁽³⁾ Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

⁽⁴⁾ Annualized.

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

 107

Summit Mutual Funds, Inc. – Pinnacle Series
SCHEDULE OF INVESTMENTS	LIFESTYLE ETF MARKET STRATEGY TARGET PORTFOLIO

	SHARES		VALUE
INVESTMENT COMPANIES - 102.1%
iShares Lehman Aggregate Bond Fund		14,185	$	1,435,097
iShares Lehman U.S. Treasury Inflation Protected Securities Fund		1,873		198,163
iShares MSCI EAFE Index Fund		9,435		740,648
iShares Russell 2000 Index Fund		1,939		147,209
iShares S&P 500 Growth Index Fund		14,093		984,114
iShares S&P 500 Value Index Fund		11,578		885,138
Midcap SPDR Trust Series 1		1,264		196,046
Summit High Yield Bond Fund (a)		3,579		98,450
Vanguard Emerging Markets Viper		470		49,021
Vanguard REIT ETF		803		49,352
TOTAL INVESTMENT COMPANIES
(Cost $4,950,241)				4,783,238
SHORT TERM INVESTMENTS - 4.0%
Money Market Funds - 4.0%
Northern Institutional Diversified Assets Portfolio		188,651		188,651
TOTAL SHORT TERM INVESTMENTS
(Cost $188,651)				188,651
Total Investments (Cost $5,138,892) (b) - 106.1%				4,971,889
Liabilities in Excess of Other Assets - (6.1)%				(285,597	)
TOTAL NET ASSETS - 100.00%			$	4,686,292

(a)	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 ofthe issuer. A summary oftransactions in the securities ofthese issuers during the period ended Decmeber 31, 2007 is defined as follows:
		Balance of shares held Dec. 31,	Gross Purchases	Gross Sales and	Balance of shares held December 31,	Value December 31,	Investment Income Jan. 1, 2007 - December 31,
	Fund	2006	and Additions	Reductions	2007	2007	2007
	Summit High
	Yield Bond Fund	260	3,530	211	3,579	$98,450	$2,879
(b)	For federal income tax purposes, cost is $5,144,710 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $28,573, and ($201,394), respectively, with a net appreciation / (depreciation) of ($172,821).

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

108

Summit Mutual Funds, Inc. – Pinnacle Series
LIFESTYLE ETF MARKET STRATEGY TARGET PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value
Unaffiliated issuers	$	4,873,439
Affiliated issuers		98,450
Receivables:
Securities sold		63,941
Shares sold		882
Interest and dividends		36,760
Receivable from adviser		28,320
Prepaid expenses and other		2
		5,101,794
LIABILITIES
Payables:
Shares redeemed		284,359
Investment securities purchased		104,589
Professional fees		14,927
Fund accounting fees		5,784
Custodian fees		120
Directors’ fees		5
Other accrued expenses		5,718
		415,502
NET ASSETS*
Paid-in capital		4,797,846
Accumulated undistributed net investment
income / (loss)		59,200
Accumulated net realized gain / (loss)
on investments		(3,751	)
Net unrealized appreciation / (depreciation)
on investments		(167,003	)
	$	4,686,292
Investments at cost
Unaffiliated issuers	$	5,037,269
Affiliated issuers		101,623
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$4,686,292	89,053	$	52.62

* FEDERAL TAX DATA AS OF DECEMBER 31, 2007
Undistributed ordinary income	$	61,267

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Dividend income from unaffiliated issuers	$	66,159
Dividend income from affiliated issuers		2,879
Interest		111
		69,149
EXPENSES
Professional fees		16,652
Fund accounting fees		14,828
Transfer agent fees		13,146
Advisory fees		7,294
Administration fees		1,326
Custodian fees		257
Directors’ fees		216
Shareholder reporting fees		142
Other expenses		332
		54,193
Reimbursements and waivers		(44,247	)
		9,946
NET INVESTMENT INCOME / (LOSS)		59,203
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments
from unaffiliated issuers		(3,819	)
Net realized gain / (loss) on investments
from affiliated issuers		65
		(3,754	)
Net change in unrealized appreciation /
(depreciation) on investments		(166,525	)
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		(170,279	)
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	(111,076	)

TRANSACTIONS WITH AFFILIATES:
	Percent of Current
	Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit	and Waivers
0.55%	0.10%	0.75%	$44,247

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

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Summit Mutual Funds, Inc. – Pinnacle Series
FINANCIAL STATEMENTS	LIFESTYLE ETF MARKET STRATEGY TARGET PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
	Year Ended December 31,
	2007			2006(1)
OPERATIONS
Net investment income / (loss)	$	59,203		$	(7	)
Net realized gain / (loss) on investments		(3,754	)		—
Net change in unrealized appreciation / (depreciation)
on investments		(166,525	)		(478	)
		(111,076	)		(485	)
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		—			—
Net realized gain on investments		—			—
		—			—
FUND SHARE TRANSACTIONS
Proceeds from shares sold		6,002,427			150,000
Reinvestment of distributions		—			—
Payments for shares redeemed		(1,354,574	)		—
		4,647,853			150,000
NET INCREASE / (DECREASE) IN NET ASSETS		4,536,777			149,515
NET ASSETS
Beginning of period		149,515			—
End of period	$	4,686,292		$	149,515
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME	$	59,200		$	—

FUND SHARE TRANSACTIONS
Sold		111,189			3,000
Reinvestment of distributions		—			—
Redeemed		(25,136	)		—
Net increase / (decrease) from fund share transactions		86,053			3,000
TOTAL COST OF PURCHASES OF:
Investment Companies	$	5,017,769		$	141,021
	$	5,017,769		$	141,021
TOTAL PROCEEDS FROM SALES OF:
Investment Companies	$	204,795		$	—
	$	204,795		$	—
*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 financial statements.

110

Summit Mutual Funds, Inc. – Pinnacle Series

LIFESTYLE ETF MARKET STRATEGY CONSERVATIVE PORTFOLIO

Summit ETF Market Strategy Conservative Portfolio - Total Return
1-Year	Since Inception
5.95%	5.67%

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:	James McGlynn D. Scott Keller Gary R. Rodmaker Michael J. Schultz Steven R. Sutermeister
Inception Date:	December 28, 2006
Total Net Assets:	$911,000
Number of Equity Holdings:	10

 Sector Allocations

 111

Summit Mutual Funds, Inc. – Pinnacle Series

LIFESTYLE ETF MARKET STRATEGY CONSERVATIVE PORTFOLIO

Objective – 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 exchange traded funds (“ETFs”) representing different market exposures.

Strategy – The Lifestyle ETF Market Strategy Conservative Portfolio (the “Portfolio”) is a "fund of funds" that pursues its investment objective through asset allocation and fund selection. Under normal market conditions, substantially all of the value of the Portfolio’s total assets will be invested in ETFs and U.S. Treasury Bills.

Managers’ Comments:

For the year ended December 31, 2007 the Lifestyle ETF Market Strategy Conservative Portfolio returned 5.95% (before the impact of any product or contract fees and expenses) versus 5.49% for the Standard & Poor’s 500 Stock Index (S&P 500) and 6.52% for the hybrid index (“benchmark”) comprised of 40% of the S&P 500 and 60% of Lehman Brothers Aggregate Bond Index returns.

The Lifestyle portfolio underperformed the benchmark for a few reasons. The Lifestyle Fund had a greater exposure to equities than the benchmark throughout a year when domestic equities as a class under-performed fixed income securities. While the exposure to international equities (that out performed domestic equities) did boost overall equity performance for the year, it could not compensate for the relatively weak U.S. equity returns. Portfolio expenses, including the impact of acquired fund fees and expenses, also impacted performance negatively.

The worst performer in the portfolio was the REIT ETF (exchange traded fund) that declined 17% as the real estate market faced a severe downturn. Fortunately, the Conservative Portfolio had less than a 1% weighting to this investment, and overall performance was not significantly compromised. The best domestic equity performer was the S&P 500 Growth ETF that returned over 9%. The best fixed income performance came from the Treasury Inflation Protected Securities (TIPS) Fund that returned 12%.

Because there were eleven funds representing different asset classes in the Portfolio, there were multiple re-allocations throughout the year. The chief movement was a gradual decrease of equity exposure and an increasing of exposure to fixed income securities. Currently the Federal Reserve is undertaking a massive effort to inject liquidity to the economy by lowering the Fed Funds interest rate. This action should boost fixed income securities first before the benefit filters down into the equity assets. At the end of the year the weightings in the major categories for the Conservative Portfolio were as follows: Domestic Equities - 30%; International Equities - 10%; Fixed Income - 55%; and Cash - 5%.

112

Summit Mutual Funds, Inc. – Pinnacle Series
LIFESTYLE ETF MARKET STRATEGY CONSERVATIVE PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding throughout the period.
	Year Ended December 31,
	2007			2006(1)
Net asset value, beginning of period	$	49.89		$	50.00
INVESTMENT ACTIVITIES:
Net investment income / (loss)		1.80	(4)		—
Net realized and unrealized gains / (losses)		1.17			(0.11	)
Total from Investment Activities		2.97			(0.11	)
DISTRIBUTIONS:
Net investment income		—			—
Net realized gains		—			—
Total Distributions		—			—
Net asset value, end of period	$	52.86		$	49.89
Total return		5.95	%		-0.22	%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net (2)		0.75	%		0.75	%(3)
Ratio of expenses to average net assets – gross		7.28	%		220.34	%(3)
Ratio of net investment income / (loss) to average net assets		3.47	%		(0.52	%)(3)
Portfolio turnover rate		15.36	%		0.00	%
Net assets, end of period (000’s)	$	911		$	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.

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

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

 113

Summit Mutual Funds, Inc. – Pinnacle Series
SCHEDULE OF INVESTMENTS	LIFESTYLE ETF MARKET STRATEGY CONSERVATIVE PORTFOLIO

December 31, 2007
	SHARES		VALUE
INVESTMENT COMPANIES - 100.5%
iShares Lehman Aggregate Bond Fund		4,543	$	459,615
iShares Lehman U.S. Treasury Inflation Protected
Securities Fund		600		63,480
iShares MSCI EAFE Index Fund		1,177		92,394
iShares Russell 2000 Index Fund		243		18,449
iShares S&P 500 Growth Index Fund		1,760		122,901
iShares S&P 500 Value Index Fund		1,445		110,470
Midcap SPDR Trust Series 1		159		24,661
Summit High Yield Bond Fund (a)		415		11,425
Vanguard Emerging Markets Viper		58		6,049
Vanguard REIT ETF		100		6,146
TOTAL INVESTMENT COMPANIES
(Cost $913,194)				915,590
SHORT TERM INVESTMENTS - 5.5%
Money Market Funds - 5.5%
Northern Institutional Diversified Assets Portfolio		49,749		49,749
TOTAL SHORT TERM INVESTMENTS
(Cost $49,749)				49,749
Total Investments (Cost $962,943) (b) - 106.0%				965,339
Liabilities in Excess of Other Assets - (6.0)%				(54,409	)
TOTAL NET ASSETS - 100.0%			$	910,930

(a)	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 ofthe issuer. A summary oftransactions in the securities ofthese issuers during the period ended December 31, 2007 is defined as follows:
		Balance of shares held Dec. 31,	Gross Purchases	Gross Sales and	Balance of shares held December 31,	Value December 31,	Investment Income Jan. 1, 2007 - December 31,
	Fund	2006	and Additions	Reductions	2007	2007	2007
	Summit High
	Yield Bond Fund	260	3,530	211	3,579	$98,450	$2,879
(b)	For federal income tax purposes, cost is $962,998 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $13,002, and ($10,661), respectively, with a net appreciation / (depreciation) of $2,341.

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

114

Summit Mutual Funds, Inc. – Pinnacle Series
LIFESTYLE ETF MARKET STRATEGY CONSERVATIVE PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value
Unaffiliated issuers	$	953,914
Affiliated issuers		11,425
Receivables:
Securities sold		11,344
Interest and dividends		6,025
Receivable from adviser		32,888
Prepaid expenses and other		2
		1,015,598
LIABILITIES
Payables:
Investment securities purchased		17,741
Shares redeemed		60,323
Professional fees		14,930
Fund accounting fees		5,783
Custodian fees		167
Other accrued expenses		5,724
		104,668
NET ASSETS*
Paid-in capital		884,114
Accumulated undistributed net investment
income / (loss)		23,728
Accumulated net realized gain / (loss)
on investments		692
Net unrealized appreciation / (depreciation)
on investments		2,396
	$	910,930
Investments at cost
Unaffiliated issuers	$	951,364
Affiliated issuers		11,579
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$910,930	17,234	$	52.86

* FEDERAL TAX DATA AS OF DECEMBER 31, 2007
Undistributed ordinary income	$	24,475
Unrealized appreciation	$	2,341

STATEMENT OF OPERATIONS
For the ended December 31, 2007
INVESTMENT INCOME
Dividend income from unaffiliated issuers	$	28,213
Dividend income from affiliated issuers		486
Interest		156
Other income		3
		28,858
EXPENSES
Professional fees		16,492
Fund accounting fees		14,836
Transfer agent fees		13,157
Advisory fees		3,761
Administration fees		684
Custodian fees		314
Shareholder reporting fees		102
Directors’ fees		94
Other expenses		330
		49,770
Reimbursements and waivers		(44,640	)
		5,130
NET INVESTMENT INCOME / (LOSS)		23,728
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments
from unaffiliated issuers		828
Net realized gain / (loss) on investments
from affiliated issuers		(136	)
		692
Net change in unrealized appreciation /
(depreciation) on investments		2,721
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		3,413
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	27,141

TRANSACTIONS WITH AFFILIATES:
	Percent of Current
	Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit	and Waivers
0.55%	0.10%	0.75%	$44,640

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

 115

Summit Mutual Funds, Inc. – Pinnacle Series
FINANCIAL STATEMENTS	LIFESTYLE ETF MARKET STRATEGY CONSERVATIVE PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
	Year Ended December 31,
	2007			2006(1)
OPERATIONS
Net investment income / (loss)	$	23,728		$	(6	)
Net realized gain / (loss) on investments		692			—
Net change in unrealized appreciation / (depreciation) on investments		2,721			(325	)
		27,141			(331	)
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		—			—
Net realized gain on investments		—			—
		—			—
FUND SHARE TRANSACTIONS
Proceeds from shares sold		882,001			150,000
Reinvestment of distributions		—			—
Payments for shares redeemed		(147,881	)		—
		734,120			150,000
NET INCREASE / (DECREASE) IN NET ASSETS		761,261			149,669
NET ASSETS
Beginning of period		149,669			—
End of period	$	910,930		$	149,669
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	23,728		$	—

FUND SHARE TRANSACTIONS
Sold		17,009			3,000
Reinvestment of distributions		—			—
Redeemed		(2,775	)		—
Net increase / (decrease) from fund share transactions		14,234			3,000
TOTAL COST OF PURCHASES OF:
Investment Companies	$	868,066		$	136,553
	$	868,066		$	136,553
TOTAL PROCEEDS FROM SALES OF:
Investment Companies	$	92,116		$	—
	$	92,116		$	—
*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 financial statements.

116

Summit Mutual Funds, Inc. – Pinnacle Series

LIFESTYLE ETF ETF MARKET STRATEGY AGGRESSIVE PORTFOLIO

Summit ETF Market Strategy Aggressive Portfolio - Total Return
1-Year	Since Inception
5.00%	4.52%

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:	James McGlynn D. Scott Keller Gary R. Rodmaker Michael J. Schultz Steven R. Sutermeister
Inception Date:	December 28, 2006
Total Net Assets:	$978,000
Number of Equity Holdings:	10

 Sector Allocations

 117

Summit Mutual Funds, Inc. – Pinnacle Series

LIFESTYLE ETF MARKET STRATEGY AGGRESSIVE PORTFOLIO

Objective – 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 various exchange traded funds (“ETFs”) representing different market exposures.

Strategy – The Lifestyle ETF Market Strategy Aggressive Portfolio (the “Portfolio”) is a "fund of funds" that pursues its investment objective through asset allocation and fund selection. Under normal market conditions, substantially all of the value of the Portfolio’s total assets will be invested in ETFs and U.S. Treasury Bills.

Managers’ Comments:

For the year ended December 31, 2007 the Lifestyle ETF Market Strategy Aggressive Portfolio returned 5.00% (before the impact of any product or contract fees and expenses) versus 5.49% for the Standard & Poor’s 500 Stock Index (S&P 500) and 5.88% for the hybrid index (“benchmark”) comprised of 80% of the S&P 500 and 20% of Lehman Brothers Aggregate Bond Index returns.

The Lifestyle portfolio underperformed the benchmark for a few reasons. The Lifestyle Fund had a greater exposure to equities than the benchmark throughout a year when domestic equities as a class under-performed fixed income securities. While the exposure to international equities (that out performed domestic equities) did boost overall equity performance for the year, it could not compensate for the relatively weak U.S. equity returns. Portfolio expenses, including the impact of acquired fund fees and expenses, also impacted performance negatively.

The worst performer in the portfolio was the REIT ETF (exchange traded fund) that declined 17% as the real estate market faced a severe downturn. Fortunately, the Aggressive Portfolio had less than a 2% weighting to this investment, and overall performance was not significantly compromised. The best domestic equity performer was the S&P 500 Growth ETF that returned over 9%. The best fixed income performance came from the Treasury Inflation Protected Securities (TIPS) Fund that returned 12%.

Because there were eleven funds representing different asset classes in the Portfolio, there were multiple re-allocations throughout the year. The chief movement was a gradual decrease of equity exposure and an increasing of exposure to fixed income securities. Currently the Federal Reserve is undertaking a massive effort to inject liquidity to the economy by lowering the Fed Funds interest rate. This action should boost fixed income securities first before the benefit filters down into the equity assets. At the end of the year the weightings in the major categories for the Aggressive Portfolio were as follows: Domestic Equities - 56%; International Equities - 19%; Fixed Income - 23%; and Cash - 2%.

118

Summit Mutual Funds, Inc. – Pinnacle Series
LIFESTYLE ETF MARKET STRATEGY AGGRESSIVE PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding throughout the period.
	Year Ended December 31,
	2007			2006(1)
Net asset value, beginning of period	$	49.79		$	50.00
INVESTMENT ACTIVITIES:
Net investment income / (loss)		1.23	(2)		—
Net realized and unrealized gains / (losses)		1.26			(0.21	)
Total from Investment Activities		2.49			(0.21	)
DISTRIBUTIONS:
Net investment income		—			—
Net realized gains		—			—
Total Distributions		—			—
Net asset value, end of period	$	52.28		$	49.79
Total return		5.00	%		-0.42	%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net (3)		0.75	%		0.75	%(4)
Ratio of expenses to average net assets – gross		7.14	%		220.77	%(4)
Ratio of net investment income / (loss) to average net assets		2.35	%		(0.72	%)(4)
Portfolio turnover rate		27.11	%		0.00	%
Net assets, end of period (000’s)	$	978		$	149

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

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

⁽³⁾ Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Adviser.

⁽⁴⁾ Annualized.

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

 119

Summit Mutual Funds, Inc. – Pinnacle Series
SCHEDULE OF INVESTMENTS	LIFESTYLE ETF MARKET STRATEGY AGGRESSIVE PORTFOLIO

December 31, 2007
	SHARES		VALUE
INVESTMENT COMPANIES - 97.0%
iShares Lehman Aggregate Bond Fund		1,697	$	171,686
iShares Lehman U.S. Treasury Inflation Protected
Securities Fund		224		23,699
iShares MSCI EAFE Index Fund		2,238		175,683
iShares Russell 2000 Index Fund		456		34,620
iShares S&P 500 Growth Index Fund		3,346		233,651
iShares S&P 500 Value Index Fund		2,747		210,008
Midcap SPDR Trust Series 1		299		46,375
Summit High Yield Bond Fund (a)		1,072		29,480
Vanguard Emerging Markets Viper		111		11,577
Vanguard REIT ETF		190		11,677
TOTAL INVESTMENT COMPANIES
(Cost $954,834)				948,456
SHORT TERM INVESTMENTS - 3.5%
Money Market Funds - 3.5%
Northern Institutional Diversified Assets Portfolio		34,958		34,958
TOTAL SHORT TERM INVESTMENTS
(Cost $34,958)				34,958
Total Investments (Cost $989,792) (b) - 100.5%				983,414
Liabilities in Excess of Other Assets - (0.5)%				(5,258	)
TOTAL NET ASSETS - 100.0%			$	978,156

(a)	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 ofthe issuer. A summary oftransactions in the securities ofthese issuers during the period ended December 31, 2007 is defined as follows:
		Balance of shares held Dec. 31,	Gross Purchases	Gross Sales and	Balance of shares held Dec. 31,	Value Dec. 31,	Investment Income Jan. 1, 2007 - Dec. 31,
	Fund	2006	and Additions	Reductions	2007	2007	2007
	Summit High
	Yield Bond Fund	149	1,588	665	1,072	$29,480	$1,251
(b)	For federal income tax purposes, cost is $989,870 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $14,043, and ($20,499), respectively, with a net appreciation / (depreciation) of ($6,456).

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

120

Summit Mutual Funds, Inc. – Pinnacle Series
LIFESTYLE ETF MARKET STRATEGY AGGRESSIVE PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value
Unaffiliated issuers	$	953,934
Affiliated issuers		29,480
Receivables:
Securities sold		12,478
Shares sold		697,000
Interest and dividends		7,757
Receivable from adviser		32,814
Prepaid expenses and other		2
		1,733,465
LIABILITIES
Payables:
Shares redeemed		696,497
Investment securities purchased		32,175
Professional fees		14,927
Fund accounting fees		5,785
Custodian fees		149
Directors’ fees		1
Other accrued expenses		5,775
		755,309
NET ASSETS*
Paid-in capital		968,075
Accumulated undistributed net investment
income / (loss)		16,422
Accumulated net realized gain / (loss)
on investments		37
Net unrealized appreciation / (depreciation)
on investments		(6,378	)
	$	978,156
Investments at cost
Unaffiliated issuers	$	959,914
Affiliated issuers		29,878
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$978,156	18,709	$	52.28

* FEDERAL TAX DATA AS OF DECEMBER 31, 2007
Undistributed ordinary income	$	16,537

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Dividend income from unaffiliated issuers	$	20,387
Dividend income from affiliated issuers		1,251
Interest		22
Other income from affiliated issuers		8
		21,668
EXPENSES
Professional fees		16,512
Fund accounting fees		14,850
Transfer agent fees		13,166
Advisory fees		3,845
Administration fees		699
Custodian fees		297
Shareholder reporting fees		112
Directors’ fees		97
Other expenses		330
		49,908
Reimbursements and waivers		(44,665	)
		5,243
NET INVESTMENT INCOME / (LOSS)		16,425
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments
from unaffiliated issuers		555
Net realized gain / (loss) on investments
from affiliated issuers		(521	)
		34
Net change in unrealized appreciation /
(depreciation) on investments		(5,759	)
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		(5,725	)
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	10,700

TRANSACTIONS WITH AFFILIATES:
	Percent of Current
	Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit	and Waivers
0.55%	0.10%	0.75%	$44,665

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

 121

Summit Mutual Funds, Inc. – Pinnacle Series
FINANCIAL STATEMENTS	LIFESTYLE ETF MARKET STRATEGY AGGRESSIVE PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
	Year Ended December 31,
	2007			2006(1)
OPERATIONS
Net investment income / (loss)	$	16,425		$	(8	)
Net realized gain / (loss) on investments		34			—
Net change in unrealized appreciation / (depreciation) on investments		(5,759	)		(619	)
		10,700			(627	)
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		—			—
Net realized gain on investments		—			—
		—			—
FUND SHARE TRANSACTIONS
Proceeds from shares sold		2,332,014			150,000
Reinvestment of distributions		—			—
Payments for shares redeemed		(1,513,931	)		—
		818,083			150,000
NET INCREASE / (DECREASE) IN NET ASSETS		828,783			149,373
NET ASSETS
Beginning of period		149,373			—
End of period	$	978,156		$	149,373
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	16,422		$	—

FUND SHARE TRANSACTIONS
Sold		44,010			3,000
Reinvestment of distributions		—			—
Redeemed		(28,301	)		—
Net increase / (decrease) from fund share transactions		15,709			3,000
TOTAL COST OF PURCHASES OF:
Investment Companies	$	981,153		$	147,134
	$	981,153		$	147,134
TOTAL PROCEEDS FROM SALES OF:
Investment Companies	$	173,523		$	—
	$	173,523		$	—
*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 financial statements.

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NATURAL RESOURCES PORTFOLIO

Summit Natural Resoures Portfolio - Total Return
1-Year	Since Inception
21.85%	21.60%

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:	Steven R. Sutermeister D. Scott Keller James McGlynn Gary R. Rodmaker Michael J. Schultz
Inception Date:	December 28, 2006
Total Net Assets:	$1.25 Million
Number of Equity Holdings:	9

 Sector Allocations

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NATURAL RESOURCES PORTFOLIO

Objective – Seeks primarily to provide capital growth, consistent with appropriate risk levels, by investing primarily in a portfolio of various exchange traded funds (“ETFs”) and exchange traded notes (“ETNs”) representing different natural resources exposures.

Strategy – Under normal circumstances, the Natural Resources Portfolio (the “Portfolio”) will invest substantially all of its assets in ETFs and ETNs.

Managers’ Comments:

The Natural Resource Portfolio posted a total return of 21.85% (before the impact of product or contract-level fees and expenses) for the year ended December 31, 2007 compared to 5.49% for the Standard & Poor’s 500 Stock Index (“benchmark”).

2007 was a year of commodity price inflation and volatility not seen in decades, and the bull commodity cycle remained in full swing. The CRB Commodity Index rose over 22%, and the U.S. dollar fell for the second straight year versus the Euro and other major currencies. The price increase in crude oil was significant, doubling its price from January lows to record highs at year-end as geopolitical risk took center stage. Historic annual increases in grain prices came to fruition despite a massive corn crop, as acreage planting shifts, weather issues, and huge global demand propelled grains to record highs. Wheat and soybean prices were higher by 75% in 2007. Gold prices ended the year at 28 year highs and posted a seventh consecutive annual gain. The price for gold, which is set globally, was driven up by soaring commodity prices and a weak U.S. dollar.

Investors who flocked to commodities in recent years to diversify their portfolios were vindicated throughout 2007, as a housing crash, credit fallout, and a new Federal Reserve Chairman caused significant economic fears. Even as fears of a domestic slowdown emerged, significant global demand continued to drive commodity prices up across the board. As a result, the Portfolio’s exposure to commodities was beneficial during the period compared to the benchmark. In addition, natural resource stocks such as Monsanto (+114% in 2007) and Freeport-McMoRan Copper & Gold (+87% in 2007) were outstanding performers. Energy-related stocks provided additional appreciation, and of the portfolio’s underlying holdings, Schlumberger continued its excellent 2007 performance (+57%).

The Portfolio’s allocation was largely unchanged in the fourth quarter as both natural resource sectors and commodities continued to perform well through year-end given the current (but perhaps slowing) expansion of the global economy and related demands from certain countries including China and India.

With 2007 seeing a significant increase in commodity prices and advancing prices for most natural resource stocks, 2008 may be a different story. Some market participants are concerned that global economic weakness may cause a decline in commodity prices, especially in certain commodity sectors where a price correction is long overdue. However if the global economy has a “soft landing” and demand from emerging economies remains strong, new highs may be seen on a number of fronts.

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NATURAL RESOURCES PORTFOLIO	FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding throughout the period.
	Year Ended December 31,
	2007			2006(1)
Net asset value, beginning of period	$	49.98		$	50.00
INVESTMENT ACTIVITIES:
Net investment income / (loss)		0.10			—
Net realized and unrealized gains / (losses)		10.82			(0.02	)
Total from Investment Activities		10.92			(0.02	)
DISTRIBUTIONS:
Net investment income		—			—
Net realized gains		—			—
Total Distributions		—			—
Net asset value, end of period	$	60.90		$	49.98
Total return		21.85	%		-0.04	%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net (2)		0.75	%		0.75	%(3)
Ratio of expenses to average net assets – gross		6.33	%		133.46	%(3)
Ratio of net investment income / (loss) to average net assets		0.23	%		(0.75	%)(3)
Portfolio turnover rate		28.39	%		0.00	%
Net assets, end of period (000’s)	$	1,255		$	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 financial statements.

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SCHEDULE OF INVESTMENTS	NATURAL RESOURCES PORTFOLIO

December 31, 2007
	SHARES		VALUE
INVESTMENT COMPANIES - 100.6%
iPath Dow Jones - AIG Commodity Index Total Return ETN (a)		5,447	$	306,230
iShares Dow Jones U.S. Utilities Sector Index Fund		182		18,639
iShares S&P Global Materials Sector Index Fund		413		32,036
iShares S&P Global Utilities Sector Index Fund		433		30,042
iShares S&P Goldman Sachs Natural Resources Index Fund		2,325		312,433
Powershares DB Commodity Index Tracking Fund		9,738		307,331
Powershares Water Resources Portfolio		2,368		50,675
Vanguard Materials ETF		2,175		191,661
Vanguard REIT ETF		208		12,784
TOTAL INVESTMENT COMPANIES
(Cost $1,089,154)				1,261,831
SHORT TERM INVESTMENTS - 2.0%
Money Market Funds - 2.0%
Northern Institutional Diversified Assets Portfolio		25,352		25,352
TOTAL SHORT TERM INVESTMENTS
(Cost $25,352)				25,352
Total Investments (Cost $1,114,506) (b) - 102.6%				1,287,183
Liabilities in Excess of Other Assets - (2.6)%				(32,462	)
TOTAL NET ASSETS - 100.0%			$	1,254,721

^(a) Non-income producing security.

^(b) For federal income tax purposes, cost is $1,117,005 and gross unrealized appreciation and depreciation of securities as of December 31, 2007 was $178,717, and ($8,539), respectively, with a net appreciation / (depreciation) of $170,178.

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

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NATURAL RESOURCES PORTFOLIO	FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007
ASSETS
Investments in securities, at value	$	1,287,183
Receivables:
Securities sold		15,728
Shares sold		12,854
Interest and dividends		1,264
Receivable from adviser		35,175
Prepaid expenses and other		11
		1,352,215
LIABILITIES
Payables:
Shares redeemed		42,598
Investment securities purchased		24,904
Professional fees		17,889
Fund accounting fees		5,775
Custodian fees		157
Other accrued expenses		6,171
		97,494
NET ASSETS*
Paid-in capital		1,082,962
Accumulated undistributed net investment
income / (loss)		1,976
Accumulated net realized gain / (loss)
on investments		(2,894	)
Net unrealized appreciation / (depreciation)
on investments		172,677
	$	1,254,721
Investments at cost	$	1,114,506
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS
		Shares	NAV
Share Class	Net Assets	Outstanding	Per Share
Class I	$1,254,721	20,602	$	60.90

*	FEDERAL TAX DATA AS OF DECEMBER 31, 2007
	Undistributed ordinary income	$	62,818
	Unrealized appreciation	$	4,417,226

Capital Loss Carryforward Expiring December 31:
	2015

$(394) 

STATEMENT OF OPERATIONS
For the year ended December 31, 2007
INVESTMENT INCOME
Dividends	$	8,438
EXPENSES
Professional fees		19,657
Fund accounting fees		14,695
Transfer agent fees		13,454
Advisory fees		4,739
Administration fees		862
Custodian fees		331
Shareholder reporting fees		127
Directors’ fees		122
Other expenses		540
		54,527
Reimbursements and waivers		(48,065	)
		6,462
NET INVESTMENT INCOME / (LOSS)		1,976
REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments		(2,894	)
Net change in unrealized appreciation /
(depreciation) on investments		172,737
NET REALIZED AND UNREALIZED
GAIN / (LOSS)		169,843
NET INCREASE / (DECREASE) IN
NET ASSETS FROM OPERATIONS	$	171,819

TRANSACTIONS WITH AFFILIATES:
	Percent of Current
	Net Asset Value
Advisory	Administration	Expense	Reimbursements
Fee	Fee	Limit	and Waivers
0.55%	0.10%	0.75%	$48,065

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

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FINANCIAL STATEMENTS	NATURAL RESOURCES PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS
	Year Ended December 31,
	2007			2006(1)
OPERATIONS
Net investment income / (loss)	$	1,976		$	(16	)
Net realized gain / (loss) on investments		(2,894	)		—
Net change in unrealized appreciation / (depreciation) on investments		172,737			(60	)
		171,819			(76	)
DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		—			—
Net realized gain on investments		—			—
		—			—
FUND SHARE TRANSACTIONS
Proceeds from shares sold		1,539,880			250,000
Reinvestment of distributions		—			—
Payments for shares redeemed		(706,902	)		—
		832,978			250,000
NET INCREASE / (DECREASE) IN NET ASSETS		1,004,797			249,924
NET ASSETS
Beginning of period		249,924			—
End of period	$	1,254,721		$	249,924
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	1,976		$	—

FUND SHARE TRANSACTIONS
Sold		28,057			5000
Reinvestment of distributions		—			—
Redeemed		(12,455	)		—
Net increase / (decrease) from fund share transactions		15,602			5000
TOTAL COST OF PURCHASES OF:
Investment Companies	$	1,079,001		$	249,336
	$	1,079,001		$	249,336
TOTAL PROCEEDS FROM SALES OF:
Investment Companies	$	229,051		$	—
	$	229,051		$	—
*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 financial statements.

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NOTES TO FINANCIAL STATEMENTS

December 31, 2007

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.

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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 an 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 as well as inflation adjustments to the face amount of inflation-indexed 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.

Effective June 29, 2007, the Portfolios adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48),” Accounting for Uncertainty in Income Taxes,” a clarification of FASB Statement No. 109, “Accounting for Income Taxes.” FIN 48 establishes financial reporting rules regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. The statute of limitations on the Portfolios’ tax returns remains open for the years ended December 31, 2004 through December 31, 2006. The adoption of FIN 48 had no impact on the Portfolios’ net assets or results of operations.

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, if any, 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 that 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.

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NOTES TO FINANCIAL STATEMENTS

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (continued)

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 they may directly invest and indexes composed of such securities. Portfolios may also 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 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. The primary 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 12, 2007 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:

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NOTES TO FINANCIAL STATEMENTS

NOTE 2 – TRANSACTIONS WITH AFFILIATES (continued)

• 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.

• 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 2006 and the first three quarters of 2007, 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 subadviser 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.

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NOTES TO FINANCIAL STATEMENTS

NOTE 2 – TRANSACTIONS WITH AFFILIATES (continued)

• 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 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 The Union Central Life Insurance Company (“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.

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

Other – The Adviser is a wholly-owned subsidiary of The Union Central Life Insurance Company (“Union Central”), 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 Fund and provides administrative services and manages Summit Mutual Funds’ business affairs.

NOTE 3 – MULTIPLE CLASSES OF SHARES

The S&P MidCap 400 Index, Russell 2000 Small Cap Index, and EAFE International Index Portfolios offer Class F and Class I shares. The Class F shares are subject to a Distribution and Shareholder Service Plan (the “Plan”) in accordance with Rule 12b-1 under the 1940 Act. The Plan provides that each class in the Plan shall pay to the Series’ Distributor, Ameritas Investment Corp. , an affiliate of the adviser, a fee 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 asset value attributable to Class F shares. Because the fee is paid out of the assets of the 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

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.

133

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, 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, as of December 31, 2007, and the related statements of operations for the year then ended and the statements of changes in net assets 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, 2007, 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, 2007, the results of their operations for the year then ended and the changes in their net assets 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 22, 2008

134

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
Name, Year of Birth	with the	Length of	Principal Occupation(s)	Overseen by	Held by
and Address(1)	Fund	Time Served	During Past Five Years	Director	Director
Theodore H. Emmerich	Director	Indefinite Term	Consultant	21	American Financial
(1926)	and Chairman	Director since			Group
		1987
Yvonne L. Gray	Director	Indefinite Term	Executive Vice President/ CCO, United	21
(1951)		Director since	Way of Greater Cincinnati (Social Services
		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 & Co.	21
(1955)		Director since	LLC (Private Equity Investment Firm)
		2005
David C. Phillips	Director	Indefinite Term	Co-Founder, Cincinnati Works Inc. (Job	21	Meridian Bioscience,
(1938)		Director since	Placement); prior thereto, Chief Executive		Inc.; Cintas, Inc.
		2001	Officer, Downtown Cincinnati Inc.
			(Economic Revitalization of Cincinnati)
Mary W. Sullivan	Director	Indefinite Term	Attorney, Peck, Shaffer & Williams LLP	21	Franklin Savings and
(1956)		Director since	(Law Firm)		Loan Co.; First
		2001			Franklin Corporation
Interested Director and Officers

				Number of
		Term of		Portfolios in	Other
	Position(s)	Office and		Fund Complex	Directorships
Name, Year of Birth	with the	Length of	Principal Occupation(s)	Overseen by	Held by
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
(1954)	President and	Director since	President and Chief Executive Officer,		Partners, Inc.; Union
	Chief Executive	1999	Adviser.		Central Mortgage
	Officer				Funding, Inc.;
					Summit Investment
					Advisers, Inc.
John F. Labmeier	Vice President	Indefinite Term	Consultant; prior thereto Vice President,	NA
1876 Waycross Rd	and Secretary	Officer since	Associate General Counsel and Assistant
Cincinnati, OH 45240		1990	Secretary, Union Central
(1949)
Thomas G. Knipper	Vice President,	Indefinite Term	Chief Compliance Officer and	NA	NA
(1957)	Controller and	Officer since	Treasurer, Adviser
	Chief Compliance	1995
	Officer
Gerald Q. Herbert	Treasurer	Indefinite Term	Director of Finance and Accounting,	NA	NA
(1966)		Officer since	Adviser; prior thereto, Controller, General
		2005	Factory Supplies Co.
John M. Lucas	Assistant	Indefinite Term	Second Vice President, Counsel and	NA	NA
1876 Waycross Rd.	Secretary	Officer since	Assistant Secretary, Union Central
Cincinnati, OH 45240		1990
(1951)

(1)	Except as otherwise indicated, the business address 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.

135

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Item 2. Code of Ethics.

As of the end of the period covered by this report (December 31, 2007), the Registrant has adopted a code of ethics that applies to its principal executive officer and principal financial officer/controller. A copy of the registrant’s Code of Ethics is filed herewith.

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
	2007	2006
	$236,474	$ 147,108
(a) Audit Fees
(b) Audit-related Fees
(c) Tax Fees
(d) All Other Fees
(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).	249,281	60,900
(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 3/10/08                                                                                                                                                                   

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 3/10/08                                                                                                    

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

Thomas G. Knipper, Controller

Date 3/10/08