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Summit Mutual Funds, Inc. — Pinnacle Series

SEMIANNUAL REPORT — TABLE OF CONTENTS


Message from the President			1
Fund Expenses			2

Portfolio Managers’ Reports and Financial Statements:
Zenith Portfolio			3
Bond Portfolio			8
S&P 500 Index Portfolio			15
S&P MidCap 400 Index Portfolio			24
Balanced Index Portfolio			33
Nasdaq-100 Index Portfolio			43
Russell 2000 Small Cap Index Portfolio			49
EAFE International Index Portfolio			71
Lehman Aggregate Bond Index Portfolio			83

Notes to Financial Statements			89
Certification Pursuant to Section 302
Certification Pursuant to Section 906

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

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

This report has been prepared for the information of Contract owners and is not authorized for distribution to prospective purchasers of contracts unless it is preceded or accompanied by an effective prospectus for Summit Mutual Funds, Inc.

Summit Mutual Funds, Inc. — Pinnacle Series

MESSAGE FROM THE PRESIDENT

We are pleased to send you Summit Mutual Funds’ 2006 Semi-Annual Report for the six month period ended June 30, 2006. We welcome new and thank existing investors in the Summit Funds. We strive to help you reach your financial goals.

The economy continued to grow at a reasonable pace during the first half of 2006. Returns in most asset classes were positive, with the exception of fixed income index products and the Nasdaq 100 Index. This was accomplished in the face of rising oil prices, continued increases in the federal funds rate, and increased geopolitical concerns around the world.

The equity markets rallied through April, but then pulled back for the balance of the quarter. Conversely, fixed income markets generally had a difficult time throughout the entire six month period, as interest rates steadily rose during the period. Gross domestic product (GDP) grew at a blistering pace of 5.6% during the first quarter, but then slowed to a more modest 2.5% during the second quarter of 2006. The Federal Reserve continued to raise interest rates from 4.25% at 12/31/05 to 5.25% at 06/30/06. A slowing economy may well give the Federal Reserve a chance to pause in its seemingly relentless increase in the Fed Funds rate, which has been increased at each of the last 17 meetings.

Inflation concerns appear to be muted at this point in time, as the market appears to be adopting the “soft landing” view for the economy. The consensus view is that the lag effect of past interest rate hikes will manifest itself in a slowing economy over the next few quarters. Hence, inflation will remain under control, and long term interest rates will remain low. While this scenario may well pan out, we would caution that crude oil prices are currently in the high $70’s per barrel, unit labor costs rose at 4.2% during the second quarter and the stated producer price index (PPI) is growing at a 4.9% clip. All of these items have a lag effect on future inflation as well, so the Federal Reserve may not be done raising interest rates, even if they pause at their August meeting.

For the period, the large cap S&P 500 Index advanced 2.71%, the S&P MidCap 400 Index improved 4.24% and the small cap Russell 2000 Index rose 8.21%. Other market sectors such as the large cap growth Nasdaq-100 Index lost 4.03%, while the Lehman Aggregate Bond Index declined 0.72%. The standout performer during the first half of 2006 was the EAFE International Index, which climbed 10.50% during the period.

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

The high yield bond market was one of the few sectors of the fixed income market to record positive returns during the first half of 2006. The high yield market provided a return of 3.07% during the first six months of 2006, using the Merrill Lynch High Yield Master II Index as a guide. High yield investments performed well, as corporate profitability remains robust, credit spreads tightened, and credit fundamentals remain strong.

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

Looking at the remainder of 2006, economic forecasts indicate a slowing of the economy. Evidence of this has already surfaced in the housing and auto markets. A slowing economy should keep inflation under control and keep interest rates in check. At least, that’s what the Federal Reserve is banking on. The Fed is currently trying to engineer a soft landing, where the economy continues to grow at a modest pace, while inflation is kept under control. Time will tell if the Fed is able to accomplish its goals, but so far, so good.

Our message remains the same going forward. 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, regardless of the economic conditions or volatility in the marketplace. Proper diversification of your investments, both within and across asset sectors, (or specifically stocks, bonds and cash) 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.

Recent highlights:

•

Summit continues to provide low-cost mutual funds. Summit’s average stock fund expense ratio is 0.66%, while the industry average for equity fund expense ratios is 1.13%.

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

Best regards,

Steven R. Sutermeister
President

Summit Mutual Funds, Inc. — Pinnacle Series

2006 SEMIANNUAL REPORT — PORTFOLIO EXPENSES (UNAUDITED)

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 to 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 December 31, 2005 through June 30, 2006.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio, net of fee waivers and expense reimbursements, and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may 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			January 1, 2006 to
Portfolio	January 1, 2006		June 30, 2006		Ratio			June 30, 2006

Based on Actual Return
Zenith Portfolio	$	1,000	$	1,073		0.86	%	$	4
Bond Portfolio		1,000		1,000		0.75	%		4
S&P 500 Index Portfolio		1,000		1,025		0.39	%		2
S&P Midcap 400 Index Portfolio		1,000		1,040		0.52	%		3
Balanced Index Portfolio		1,000		1,016		0.60	%		3
Nasdaq-100 Index Portfolio		1,000		957		0.65	%		3
Russell 2000 Small Cap Index Portfolio Class I		1,000		1,079		0.63	%		3
Russell 2000 Small Cap Index Portfolio Class F		1,000		1,078		0.83	%		4
EAFE International Index Portfolio		1,000		1,102		0.95	%		5
Lehman Aggregate Bond Index Portfolio		1,000		993		0.57	%		3

Based on Hypothetical Return
(5% return before expenses)
Zenith Portfolio	$	1,000	$	1,021		0.86	%	$	4
Bond Portfolio		1,000		1,021		0.75	%		4
S&P 500 Index Portfolio		1,000		1,023		0.39	%		2
S&P Midcap 400 Index Portfolio		1,000		1,022		0.52	%		3
Balanced Index Portfolio		1,000		1,022		0.60	%		3
Nasdaq-100 Index Portfolio		1,000		1,022		0.65	%		3
Russell 2000 Small Cap Index Portfolio Class I		1,000		1,022		0.63	%		3
Russell 2000 Small Cap Index Portfolio Class F		1,000		1,021		0.83	%		4
EAFE International Index Portfolio		1,000		1,020		0.95	%		5
Lehman Aggregate Bond Index Portfolio		1,000		1,022		0.57	%		3


*		Expenses are equal to the Portfolio’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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.

Manager’s Comments:

The Zenith Portfolio total return performance for the period January 1, 2006 to June 30, 2006 was 7.26% (before the impact of any product or contract-level fees) versus 6.56% for the Russell 1000 Value Index and 2.71% for the Standard & Poor’s 500 Stock Index.

The Federal Reserve has continued to raise short-term interest rates and has indicated its intention to continue on this course until either inflation recedes or economic growth decelerates. With short-term interest rates exceeding 5%, equity markets face increasing competition from risk-free accounts. Long-term fixed income investors have suffered as interest rates rise while short-term instruments have benefited from higher short rates. The equity market might perceive the beginning of the end of interest rate hikes, but the bond market is suffering in the meantime.

Utilities were the top contributor to fund performance during the period. Zenith’s holdings were focused on the Telecom group (BellSouth, AT&T, and Verizon), and AT&T’s acquisition of BellSouth provided incremental gains. Stock selection in the Electrical Utilities sector also boosted returns. The Autos & Transportation sector outperformed the broad market and was a top contributor to portfolio return as Zenith overweighted the Autos sub-sector, including holdings in General Motors and Honda Motors that enjoyed strong performance. Holdings in Federal Express also aided fund performance.

Underweighting the Materials and Processing sector was a detractor as its performance was buoyed by increasing commodities prices. Instead, the portfolio was overweighted in Chemicals which underperformed. Stock selection in the Technology sector also hurt performance. The portfolio underweighted the high flying Energy and Integrated Oils sectors, however, their strong performance continued. Additionally, ConocoPhillips, which was overweighted in this sector, declined as a result of its acquisition of Burlington Resources. An overweight in the Oil Services and Equipment sector partially offset the portfolio’s relative underperformance in the Energy sector.

The Federal Reserve appears to be monitoring two major indicators of consumer spending (automobile and home sales) for any signs of weakness caused by higher interest rates or energy prices. The Federal Reserve previously had hinted that the federal funds could rise to the 3-5% range to retard inflation and possibly cool growth, and we are now above the upper end of that boundary.

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

Fund Data


Managers:		James McGlynn Yvonne M. Bishop
Inception Date:		August 15, 1984
Total Net Assets:		$55.08 Million
No. of Holdings:		53
Median Cap Size:		$39,450 Million
Average Price-to-book Ratio:		2.22 x
Dividend Yield:		2.51%
Average Price-to-earnings Ratio:
Summit Pinnacle Zenith Portfolio		14.2 x
S&P 500 Index		16.4 x

Top 10 Equity Holdings


	(% of net assets)
Chevron Corp.		2.75	%
Dominion Resources, Inc.		2.70	%
Bank of America Corp.		2.68	%
Verizon Communications, Inc.		2.67	%
ConocoPhillips		2.66	%
Genworth Financial, Inc.		2.59	%
News Corp. — Class B		2.58	%
Time Warner, Inc.		2.57	%
Royal Dutch Shell PLC — ADR		2.52	%
Citigroup, Inc.		2.51	%

Sector Allocations

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL HIGHLIGHTS		ZENITH PORTFOLIO

FINANCIAL HIGHLIGHTS

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


	For the Six Months
	Ended June 30,
	(Unaudited)			Year Ended December 31,
	2006			2005			2004			2003			2002			2001
Net asset value, beginning of period	$	91.78		$	91.30		$	80.76		$	59.67		$	82.75		$	75.60

Investment Activities:
Net investment income / (loss)		0.81			1.35			1.47			1.17			1.11			1.40
Net realized and unrealized gains / (losses)		5.61			4.57			10.33			20.01			(18.92	)		7.05

Total from Investment Activities		6.42			5.92			11.80			21.18			(17.81	)		8.45


DISTRIBUTIONS:
Net investment income		(1.42	)		(1.43	)		(1.26	)		(0.09	)		(1.39	)		(1.30	)
Return of capital		—			—			—			—			(3.88	)		—
Net realized gains		(8.68	)		(4.01	)		—			—			—			—

Total Distributions		(10.10	)		(5.44	)		(1.26	)		(0.09	)		(5.27	)		(1.30	)

Net asset value, end of period	$	88.10		$	91.78		$	91.30		$	80.76		$	59.67		$	82.75

Total return		7.26	%		6.92	%		14.77	%		35.56	%		-23.10	%		11.24	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net⁽¹⁾		0.86	%⁽²⁾		0.89	%		0.91	%		0.93	%		0.93	%		0.81	%
Ratio of expenses to average net assets – gross		0.86	%⁽²⁾		0.89	%		0.91	%		0.93	%		0.93	%		0.83	%
Ratio of net investment income / (loss) to average net assets		1.79	%⁽²⁾		1.49	%		1.74	%		1.68	%		1.52	%		1.74	%
Portfolio turnover rate		28.67	%		57.30	%		68.59	%		71.70	%		56.53	%		102.03	%
Net assets, end of period (000’s)	$	55,084		$	52,795		$	51,864		$	47,104		$	38,218		$	54,562

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

⁽²⁾ Annualized.

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

Summit Mutual Funds, Inc. — Pinnacle Series


ZENITH PORTFOLIO		SCHEDULE OF INVESTMENTS

JUNE 30, 2006 (Unaudited)


	SHARES		VALUE
COMMON STOCKS - 97.6%
CONSUMER DISCRETIONARY - 13.0%
CBS Corporation		19,374	$	524,067
The Gap, Inc.		47,900		833,460
Honda Motor Co. Ltd. - ADR		28,400		903,688
News Corp. - Class B		70,400		1,420,672
Sony Corp. - ADR		28,300		1,246,332
Time Warner, Inc.		81,700		1,413,410
Viacom Inc. - Class B^(a)		23,274		834,140

				7,175,769


CONSUMER NON DURABLES - 3.4%
Anheuser-Busch Companies, Inc.		12,000		547,080
Unilever NV - ADR		59,700		1,346,235

				1,893,315


ENERGY - 12.8%
Baker Hughes, Inc.		7,800		638,430
Chevron Corp.		24,440		1,516,747
ConocoPhillips		22,342		1,464,071
Exxon Mobil Corp.		19,300		1,184,055
Nabors Industries Ltd.^(a)		25,800		871,782
Royal Dutch Shell PLC - ADR		20,700		1,386,486

				7,061,571


FINANCIALS - 28.8%
AllianceBernstein Holding LP		17,100		1,045,494
Bank of America Corp.		30,684		1,475,900
The Bank of New York Co., Inc.		27,400		882,280
Berkshire Hathaway, Inc.^(a)		190		578,170
Capital One Financial Corp.		11,400		974,130
Citigroup, Inc.		28,700		1,384,488
Equity Residential Properties Trust		8,400		375,732
Fifth Third Bancorp		32,000		1,182,400
Freddie Mac		15,000		855,150
Genworth Financial, Inc.		41,000		1,428,440
The Goldman Sachs Group, Inc.		2,300		345,989
H&R Block, Inc.		44,200		1,054,612
J.P. Morgan Chase & Co.		19,004		798,168
Morgan Stanley		20,300		1,283,163
New York Community Bancorp, Inc.		65,900		1,088,009
The St. Paul Travelers Companies, Inc.		24,500		1,092,210

				15,844,335


HEALTH CARE - 4.6%
GlaxoSmithKline Plc - ADR		16,000		892,800
Pfizer, Inc.		47,500		1,114,825
UnitedHealth Group, Inc.		11,700		523,926

				2,531,551


INDUSTRIALS - 11.1%
Cendant Corp.		84,900		1,383,021
Deere & Co.		6,200		517,638
FedEx Corp.		2,400		280,464
General Electric Co.		41,500		1,367,840
Honeywell International, Inc.		30,700		1,237,210
Tyco International Ltd.		47,400		1,303,500

				6,089,673


MATERIALS - 5.2%
The Dow Chemical Co.		24,000		936,720
EI Du Pont de Nemours & Co.		25,300		1,052,480
Phelps Dodge Corp.		10,500		862,680

				2,851,880


TECHNOLOGY - 8.1%
Cisco Systems, Inc.^(a)		46,600		910,098
Intel Corp.		54,600		1,034,670
International Business Machines Corp.		11,700		898,794
Microsoft Corp.		48,400		1,127,720
Nokia Oyj - ADR		24,900		504,474

				4,475,756


TELECOMMUNICATION SERVICES - 2.4%
AT&T, Inc.		47,900		1,335,931


UTILITIES - 8.2%
Citizens Communications Co.		73,400		957,870
Dominion Resources, Inc.		19,900		1,488,321
Duke Energy Corporation		19,344		568,133
Verizon Communications, Inc.		43,900		1,470,211

				4,484,535

Total Common Stocks (Cost $49,570,396)				53,744,316


SHORT TERM INVESTMENTS - 2.4%
MONEY MARKET FUNDS - 2.4%
Northern Institutional Diversified Assets Portfolio		1,344,284		1,344,284


Total Short Term Investments (Cost $1,344,284)				1,344,284

TOTAL INVESTMENTS (Cost $50,914,680)^(b) - 100.0%				55,088,600
NORTHERN INSTITUTIONAL LIQUID ASSET PORTFOLIO^(c) - 8.5%				4,685,272
LIABILITIES IN EXCESS OF OTHER ASSETS - (8.5)%				(4,690,229	)

TOTAL NET ASSETS - 100.0%			$	55,083,643


ADR American Depository Receipt

(a)		Non income producing security.

(b)		For federal income tax purposes, cost is $50,944,970 and gross unrealized appreciation and depreciation of securities as of June 30, 2006 was $5,504,374 and $(1,360,744) respectively, with a net appreciation / depreciation of $4,143,630.

(c)		This security was purchased with cash collateral held from securities lending. The market value of the securities on the loan, the collateral purchased with cash, and the noncash collateral accepted is $4,592,709, $4,685,272, and $0, respectively.

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

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL STATEMENTS		ZENITH PORTFOLIO

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)


ASSETS
Investments in securities, at value	$	55,088,600
Cash		2,739
Collateral for securities loaned, at fair value		4,685,272
Receivables:
Interest and dividends		66,159
Prepaid expenses and other		1,051

		59,843,821


LIABILITIES
Payables:
Shares redeemed		21,748
Payable upon return of securities loaned		4,685,272
Advisory fees		28,481
Administration expenses		4,450
Directors’ fees		81
Custodian fees		1,180
Fund accounting fees		3,631
Professional fees		10,302
Other accrued expenses		5,033

		4,760,178


NET ASSETS*
Paid-in capital		47,387,098
Accumulated net investments income / (loss)		369,967
Accumulated net realized gain / (loss) on investments and futures contracts		3,152,658
Net unrealized appreciation / (depreciation) on investments and futures contracts		4,173,920

	$	55,083,643


Investments at cost		50,914,680
Shares Authorized ($.10 par value)		40,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS


			Shares
Share Class	Net Assets		Outstanding
Class I	$	55,083,643		625,207	$	88.10


*		FEDERAL TAX DATA AS OF December 31, 2005


Undistributed ordinary income	$	2,124,700
Unrealized long-term gains	$	3,481,657
Unrealized appreciation	$	4,028,714

STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 (Unaudited)


INVESTMENT INCOME
Interest	$	23,223
Dividends		701,344
Foreign dividend taxes withheld		(10,998	)
Other income		3,361

		716,930


EXPENSES
Advisory fees		173,585
Administration expenses		27,123
Custodian fees and expenses		1,809
Fund accounting fees and expenses		9,350
Professional fees		8,244
Directors’ fees		2,848
Transfer agent fees		4,748
Other expenses		4,623

		232,330

NET INVESTMENT INCOME / (LOSS)		484,600


REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments and options		3,207,261
Net change in unrealized appreciation / (depreciation) on investments and futures contracts		114,917

NET REALIZED AND UNREALIZED GAIN / (LOSS)		3,322,178

NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS	$	3,806,778


TRANSACTIONS WITH AFFILIATES:


Percent of Current
Net Asset Value
Advisory	Administration Expense
Fee	Fee			Limit⁽¹⁾			Waiver		Reimbursement

0.64%		0.10	%		1.00	%	$	—	$	—


⁽¹⁾		The Adviser has agreed to pay other expenses of the portfolio, other than the advisory fees, to the extent that such expenses exceed the stated percentage of their average net assets.

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

Summit Mutual Funds, Inc. — Pinnacle Series


ZENITH PORTFOLIO		FINANCIAL STATEMENTS

STATEMENTS OF CHANGES IN NET ASSETS


	For the
	Six Months
	Ended June 30,			Year Ended
	(Unaudited)			December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	484,600		$	777,139
Net realized gain / (loss) on investments and futures		3,207,261			4,910,752
Net change in unrealized appreciation / (depreciation) on investments		114,917			(2,172,750	)

		3,806,778			3,515,141


DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(807,599	)		(815,280	)
Net realized gain on investments		(4,937,705	)		(2,284,000	)

		(5,745,304	)		(3,099,280	)


FUND SHARE TRANSACTIONS
Proceeds from shares sold		1,171,127			3,640,457
Reinvestment of distributions		5,745,304			3,099,280
Payments for shares redeemed		(2,689,418	)		(6,224,313	)

		4,227,013			515,424


NET INCREASE / (DECREASE) IN NET ASSETS		2,288,487			931,285
NET ASSETS
Beginning of period		52,795,156			51,863,871

End of period	$	55,083,643		$	52,795,156


ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	369,967		$	692,966


FUND SHARE TRANSACTIONS
Sold		13,167			41,288
Reinvestment of distributions		66,775			36,266
Redeemed		(29,964	)		(70,395	)


Net increase / (decrease) from fund share transactions		49,978			7,159


TOTAL COST OF PURCHASES OF:
Common Stocks	$	15,347,873		$	29,153,524

	$	15,347,873		$	29,153,524


TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	16,834,755		$	30,407,042

	$	16,834,755		$	30,407,042


*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	2,263,647		$	1,053,031
Long-term capital gains		3,481,657			2,046,249

	$	5,745,304		$	3,099,280

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

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.

Manager’s Comments:

The Portfolio had a total return of +0.01% (before the impact of any product or contract-level fees) for the six month period ended June 30, 2006 compared to a total return of (0.72)% for the Lehman Brothers Aggregate Index (the “Index”).

Interest rates rose during the six month period ended June 30, 2006. Rates across the yield curve increased 65 to 75 basis points during the period. The Federal Reserve continued its policy of raising the Fed Funds rate in 25 basis point increments at every meeting. The Treasury yield curve became even flatter with the 2 year Treasury note rate at 5.15% and the 30 year Treasury bond at 5.19%.

The outlook for inflation and the Federal Reserve’s interest rate policies became sources of rising uncertainty for bond investors during the first half of 2006. The acceleration of global growth has progressed long enough that inflation worries have revived. The Federal Reserve will likely continue raising short term interest rates until it sees clear evidence of weaker economic growth. The recent slowdown in the housing market and weakness in leading economic indicators have not been sufficient to halt the steady stream of rate increases, although recent statements may open the door for a cessation of this strategy. Look for economic growth to slow from the first quarter pace over the remainder of the year but not trigger a recession. The current uncertain conditions continue to warrant a conservative, defensive investment approach for the fixed income market.

The high yield sector provided the largest positive contribution to the Portfolio’s performance over the past six months. The mortgage sector, lead by non-agency mortgage securities, also contributed to the Portfolio’s out performance. Mortgage-backed securities outperformed both Treasury bonds and investment grade corporate bonds during the period. The investment grade corporate bond sector underperformed during the period as credit spreads widened mainly due to increased merger and acquisition activity.

We continue to believe that our long-term strategy of overweighting investment grade corporate securities, maintaining a moderate exposure to high yield securities, overweighting mortgage-backed securities and underweighting Treasuries and Agencies will result in value-added opportunities for fixed income investors.

Fund Data


Managers:		Gary R. Rodmaker
		Michael J. Schultz
		D. Scott Keller
Inception Date:		August 15, 1984
Total Net Assets:		$27.99 Million
No. of Holdings:		135
Average Duration:		4.47 years
Average Maturity:		12.90 years
Average Credit Quality:		A3/A-
Current Yield:		6.25%

Quality Breakdown


	(% of net assets)
AAA		35	%
AA		3	%
A		13	%
BBB		34	%
BB		7	%
B		6	%
CCC		1	%
CC		1	%
D		1	%

Sector Allocations

Summit Mutual Funds, Inc. — Pinnacle Series


BOND PORTFOLIO		FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS


	For the Six Months
	Ended June 30,
	(Unaudited)			Year Ended December 31,
	2006			2005			2004			2003			2002			2001
Net asset value, beginning of period	$	47.07		$	48.26		$	48.41		$	47.93		$	48.15		$	47.30


Investment Activities:
Net investment income / (loss)		1.29			2.42			1.67			3.25			2.70			3.15
Net realized and unrealized gains / (losses)		(1.30	)		(1.42	)		0.36			0.56			(0.04	)		—

Total from Investment Activities		(0.01	)		1.00			2.03			3.81			2.66			3.15


DISTRIBUTIONS:
Net investment income		(1.27	)		(2.19	)		(2.18	)		(3.33	)		(2.88	)		(2.30	)

Total Distributions		(1.27	)		(2.19	)		(2.18	)		(3.33	)		(2.88	)		(2.30	)

Net asset value, end of period	$	45.79		$	47.07		$	48.26		$	48.41		$	47.93		$	48.15

Total return		0.01	%		2.14	%		4.29	%		8.21	%		5.73	%		6.81	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net⁽¹⁾		0.75	%⁽²⁾		0.75	%		0.75	%		0.75	%		0.76	%		0.79	%
Ratio of expenses to average net assets – gross		0.75	%⁽²⁾		0.83	%		0.82	%		0.81	%		0.85	%		0.87	%
Ratio of net investment income / (loss) to average net assets		5.46	%⁽²⁾		5.10	%		4.05	%		6.72	%		5.86	%		6.37	%
Portfolio turnover rate		30.84	%		32.96	%		66.03	%		109.52	%		54.27	%		65.14	%
Net assets, end of period (000’s)	$	27,994		$	30,783		$	36,300		$	37,197		$	35,415		$	29,147


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

⁽²⁾		Annualized

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


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

JUNE 30, 2006 (Unaudited)


	SHARES		VALUE

COMMON STOCKS — 0.4%
CONSUMER DISCRETIONARY — 0.4%
Avado Brands, Inc.^(a)(f)		1,601	$	19,212
Intermet Corp.^(a)(f)		1,574		22,315
New World Pasta Company^(a)(f)		7,517		70,306

Total Common Stocks (Cost $167,766)				111,833


PREFERRED STOCKS — 1.1%
INFORMATION TECHNOLOGY — 0.4%
Loral Skynet Corp.^(a)(b)		625		123,750


MEDIA — 0.7%
ION Media Networks, Inc. 14.25% PIK Dividend		22		192,535

Total Preferred Stocks (Cost $271,225)				316,285


	PRINCIPAL
	AMOUNT		VALUE

ASSET BACKED SECURITIES — 2.6%
America West Airlines, Inc.
Series 2001-1, 7.100%, 10/02/2022	$	200,460	$	206,474
Asset Backed Funding Certificates
Series 2005-AQ1, 5.240%, 11/25/2034		170,000		161,104
Centex Home Equity
Series 2001-B, 7.360%, 07/25/2032		59,258		59,040
JET Equipment Trust
Series 1995-B, 7.630%, 02/15/2015^(b)(g)		129,875		98,705
Continental Airlines, Inc.
Series 2003-ERJ1, 7.875%, 01/02/2020		212,890		207,568

Total Asset Backed Securities (Cost $760,175)				732,891


CORPORATE BONDS — 49.8%
CONSUMER DISCRETIONARY — 14.5%
Accuride Corp.
8.500%, 02/01/2015		125,000		120,000
Bally Total Fitness Holding Corp.
9.875%, 10/15/2007		125,000		122,812
Boyd Gaming Corp.
7.125%, 02/01/2016		64,000		61,840
Cadmus Communications Corp.
8.375%, 06/15/2014		63,000		62,370
Comcast Corp.
5.300%, 01/15/2014		100,000		94,084
Cox Communications, Inc.
5.450%, 12/15/2014		361,000		333,780
DaimlerChrysler North America Holding Corp.
6.500%, 11/15/2013		250,000		249,864
Ethan Allen Global, Inc.
5.375%, 10/01/2015		300,000		275,826
Grupo Televisa S.A.
6.625%, 03/18/2025		300,000		282,704
Harrah’s Operating Company, Inc.
6.500%, 06/01/2016		230,000		224,108
Intcomex, Inc.
11.750%, 01/15/2011^(b)		125,000		124,062
MDC Holdings, Inc.
5.500%, 05/15/2013		150,000		136,921
MGM MIRAGE
6.750%, 09/01/2012		125,000		120,312
Mirage Resorts, Inc.
6.750%, 02/01/2008		70,000		70,350
Mohawk Industries, Inc.
6.125%, 01/15/2016		250,000		241,012
NVR, Inc.
5.000%, 06/15/2010		210,000		199,955
R.H. Donnelley Corp.
6.875%, 01/15/2013^(b)		125,000		115,000
Station Casinos, Inc.
6.000%, 04/01/2012		62,000		58,048
TCI Communications, Inc.
8.750%, 08/01/2015		240,000		274,217
Technical Olympic USA, Inc.
9.000%, 07/01/2010		125,000		121,563
Thomson Corp.
6.200%, 01/05/2012		200,000		202,138
Time Warner, Inc.
6.875%, 05/01/2012		240,000		248,033
Viacom, Inc.
5.750%, 04/30/2011^(b)		250,000		245,555
6.875%, 04/30/2036^(b)		75,000		72,380

				4,056,934

CONSUMER STAPLES — 0.6%
Del Monte Corp.
6.750%, 02/15/2015		62,000		57,505
Land O Lakes Capital Trust I
7.450%, 03/15/2028^(b)		125,000		97,500

				155,005

ENERGY — 6.7%
Canadian Oil Sands Ltd.
5.800%, 08/15/2013^(b)		300,000		295,035
Chesapeake Energy Corporation
6.625%, 01/15/2016		125,000		116,250
Chesapeake Energy Corporation
7.625%, 07/15/2013		250,000		251,562
Energy Transfer Partners
5.950%, 02/01/2015		300,000		288,890
Newfield Exploration Co.
6.625%, 04/15/2016		125,000		117,813
Northwest Pipeline Corp.
8.125%, 03/01/2010		63,000		65,520
Pemex Project Funding Master Trust
8.000%, 11/15/2011		250,000		264,250
Pen Holdings, Inc.
9.875%, 06/15/2008^(g)		63,000		38,430
Plains All American Pipeline LP
4.750%, 08/15/2009		250,000		241,584
SemGroup LP
8.750%, 11/15/2015^(b)		63,000		62,685
Tesoro Corp.
6.625%, 11/01/2015^(b)		63,000		59,693
Whiting Petroleum Corp.
7.250%, 05/01/2013		63,000		60,323

				1,862,035

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


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


	PRINCIPAL
	AMOUNT		VALUE

FINANCIALS — 9.0%
Block Financial Corp.
5.125%, 10/30/2014	$	210,000	$	189,439
Bunge Ltd Finance Corp.
7.800%, 10/15/2012		300,000		324,293
Ford Motor Credit Co.
5.700%, 01/15/2010		150,000		131,391
General Motors Acceptance Corp.
7.750%, 01/19/2010		125,000		124,355
Health Care REIT, Inc.
8.000%, 09/12/2012		250,000		269,062
Host Marriott LP
6.750%, 06/01/2016^(b)		125,000		119,219
Kinder Morgan Finance Corp.
5.700%, 01/05/2016		300,000		260,482
Mirant Americas Generation LLC
9.125%, 05/01/2031		125,000		121,250
Nationwide Health Properties, Inc.
6.000%, 05/20/2015		300,000		287,060
North Front Pass-through Trust
5.810%, 12/15/2024^(b)(c)		340,000		323,253
R.H. Donnelley Finance Corp I
10.875%, 12/15/2012^(b)		63,000		69,142
USF&G Capital II
8.470%, 01/10/2027		240,000		252,182
Ventas Realty LP
7.125%, 06/01/2015		37,000		37,000

				2,508,128

HEALTH CARE — 1.4%
Beckman Coulter, Inc.
6.875%, 11/15/2011		300,000		311,344
Davita, Inc.
7.250%, 03/15/2015		31,000		29,760
Genesis Healthcare Corp.
8.000%, 10/15/2013		62,000		64,868

				405,972

INDUSTRIALS — 4.3%
Ametek, Inc.
7.200%, 07/15/2008		250,000		254,316
DRS Technologies, Inc.
7.625%, 02/01/2018		32,000		31,840
Evergreen International Aviation, Inc.
12.000%, 05/15/2010		150,000		153,750
Tenneco Packaging, Inc.
8.125%, 06/15/2017		450,000		496,699
Teva Pharmaceutical Financial, LLC
5.550%, 02/01/2016		300,000		281,353

				1,217,958

MATERIALS — 4.7%
Boise Cascade LLC
7.943%, 10/15/2012^(c)		32,000		31,840
Eastman Chemical Co.
6.300%, 11/15/2018		330,000		316,585
Falconbridge Ltd.
7.350%, 06/05/2012		125,000		130,206
Gannett Co., Inc.
5.750%, 06/01/2011		250,000		246,111
Lubrizol Corp.
7.250%, 06/15/2025		300,000		306,516
Temple Inland, Inc.
6.375%, 01/15/2016		250,000		247,006
Werner Holding Co, Inc.
10.000%, 11/15/2007^(f)(g)		125,000		31,875

				1,310,139

TELECOMMUNICATION SERVICES — 5.4%
America Movil S.A. de C.V.
5.500%, 03/01/2014		250,000		230,986
Citizens Communications Co.
6.250%, 01/15/2013		125,000		118,125
Qwest Communications International, Inc.
7.500%, 02/15/2014		125,000		121,875
Sprint Capital Corp.
6.900%, 05/01/2019		250,000		256,846
Telefonica Emisones SAU
6.421%, 06/20/2016		230,000		229,523
TELUS Corp.
8.000%, 06/01/2011		250,000		270,725
Verizon Florida, Inc.
6.125%, 01/15/2013		300,000		293,015

				1,521,095

UTILITIES — 3.2%
The AES Corp.
9.375%, 09/15/2010		125,000		133,750
Calpine Corp.
9.875%, 12/01/2011^(b)(g)		125,000		116,563
Edison Mission Energy
7.500%, 06/15/2013^(b)		125,000		122,500
Kern River Funding Corp.
6.676%, 07/31/2016^(b)		55,199		57,084
LCI International, Inc.
7.250%, 06/15/2007		62,000		61,845
Nevada Power Co.
6.500%, 04/15/2012		31,000		30,834
NRG Energy, Inc.
7.375%, 02/01/2016		125,000		121,875
Sierra Pacific Power Co.
6.250%, 04/15/2012		31,000		30,467
TXU Corp.
5.550%, 11/15/2014		250,000		226,754

				901,672

Total Corporate Bonds (Cost $14,444,185)				13,938,938


MORTGAGE BACKED SECURITIES — 36.9%
Banc of America Alternative Loan Trust
Series 2003-6, 4.750%, 08/25/2018		309,089		277,320
Series 2003-8, 4.750%, 10/25/2033		130,503		115,743
Banc of America Funding Corp.
Series 2003-2, 6.374%, 06/25/2032		207,872		205,758
Banc of America Mortgage Securities
Series 2004-7, 4.797%, 08/25/2019		283,090		256,581
Series 2001-4, 6.750%, 03/20/2031		199,285		198,962
Series 2002-G, 6.634%, 06/20/2032		91,734		92,289
Series 2004-6, 5.500%, 07/25/2034		183,821		179,241

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



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


	PRINCIPAL
	AMOUNT		VALUE

MORTGAGE BACKED SECURITIES — 36.9% (Continued)
Chase Commercial Mortgage Securities Corp.
Series 97-2, 6.600%, 12/19/2029	$	627,885	$	634,348
Citicorp Mortgage Securities, Inc.
Series 2003-10, 4.500%, 11/25/2018		927,511		866,643
CS First Boston Mortgage Securities Corp.
Series 2002-24, 6.250%, 09/25/2032		153,963		151,466
Fannie Mae
Series 94-019, 5.000%, 01/25/2024		133,977		132,317
Series 2002-48B, 6.500%, 10/25/2031		1,769,952		1,783,264
Fannie Mae Pool
Pool #254438, 5.500%, 08/01/2009		120,203		118,974
Pool #555638, 5.000%, 11/01/2009		295,922		289,687
Pool #254643, 5.500%, 01/01/2010		153,116		151,550
Pool #555520, 5.500%, 02/01/2010		66,786		66,103
Pool #254340, 5.500%, 05/01/2012		130,732		129,667
Pool #545015, 6.000%, 06/01/2016		131,492		131,969
Pool #727360, 5.500%, 08/01/2018		739,955		727,411
Pool #481582, 6.500%, 02/01/2029		50,010		50,523
Freddie Mac
Series 2810, 5.500%, 06/15/2034		467,160		458,810
Freddie Mac (Gold) Pool
Pool #E9-6460, 5.000%, 05/01/2018		137,235		132,399
Pool #E9-9160, 4.500%, 09/01/2018		2,043,251		1,932,597
Pool #C7-6658, 5.000%, 02/01/2033		75,884		71,209
Ginnie Mae I Pool
Pool #446760X, 6.500%, 10/15/2028		79,573		80,803
GMAC Mortgage Corp Loan Trust
Series 2004-J1, 5.250%, 04/25/2034		156,873		154,438
MASTR Asset Securitization Trust
Series 2003-9, 5.500%, 10/25/2033		68,549		67,504
Residential Accredit Loans, Inc.
Series 2002-QS16, 5.750%, 10/25/2017		164,965		158,375
Residential Funding Mortgage Securities
Series 2003-S20, 4.750%, 12/25/2018		301,796		275,262
Salomon Brothers Mortgage Securities VII
Series 2003-HYB1, 4.125%, 09/25/2033		193,408		185,502
Structured Asset Securities Corp.
Series 2003-20, 5.384%, 07/25/2033		290,249		267,792

Total Mortgage Backed Securities (Cost $10,748,986)				10,344,507


U.S. TREASURY OBLIGATIONS — 5.4%
U.S. TREASURY NOTES — 5.4%
3.125%, 01/31/2007	$	150,000	$	148,142
3.500%, 11/15/2009		250,000		237,627
5.000%, 02/15/2011		250,000		249,385
5.000%, 08/15/2011		475,000		473,571
4.000%, 11/15/2012		200,000		187,984
3.625%, 05/15/2013		225,000		205,814

Total U.S. Treasury Obligations (Cost $1,577,788)				1,502,523


	SHARES		VALUE

WARRANTS — 0.1%
Arcadia^(f)		192	$	0
New World Pasta Company — Class A^(f)		5,568		10,155
New World Pasta Company — Class B^(f)		6,187		7,031

Total Warrants (Cost $0)				17,186


SHORT TERM INVESTMENTS — 2.0%
MONEY MARKET FUNDS — 0.6%
Northern Institutional Diversified Assets Portfolio		166,723		166,723


	PRINCIPAL
	AMOUNT		VALUE

FLOATING RATE NOTES —1.4%
Axa
5.130%, 02/06/2049	$	450,000	$	387,000

Total Short Term Investments (Cost $571,723)				553,723

TOTAL INVESTMENTS (Cost $28,541,848)^(d)— 98.3%				27,517,886

NORTHERN INSTITUTIONAL LIQUID ASSETS PORTFOLIO^(e) — 18.6%				5,207,982

LIABILITIES IN EXCESS OF OTHER ASSETS — (16.9)%				(4,732,154	)


TOTAL NET ASSETS — 100.0%			$	27,993,714


^(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 $28,541,848 and gross unrealized appreciation and depreciation of securities as of June 30, 2006 was $237,863 and ($1,261,825), respectively, with a net appreciation / (depreciation) of ($1,023,962).

^(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 $5,497,971, $5,207,982, and $372,693, respectively.

^(f)		Security is considered illiquid. The aggregate value of such securities is $160,894 or 0.6% of total net assets.

^(g)		Security in default.

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


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

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)


ASSETS
Investments in securities, at value	$	27,517,886
Collateral for securities loaned, at fair value		5,207,982
Receivables:
Securities sold		147,608
Shares sold		33,456
Interest and dividends		338,373
Prepaid expenses and other		736

		33,246,041


LIABILITIES
Payables:
Payable upon return of securities loaned		5,207,982
Advisory fees		10,818
Administration expenses		12,627
Directors’ fees		14
Custodian fees		1,128
Fund accounting fees		5,050
Professional fees		9,765
Bank overdraft		888
Other accrued expenses		4,055

		5,252,327


NET ASSETS*
Paid-in capital		35,142,914
Accumulated net investments income / (loss)		151,807
Accumulated net realized gain / (loss) on investments and futures contracts		(6,277,045	)
Net unrealized appreciation / (depreciation) on investments and futures contracts		(1,023,962	)

	$	27,993,714


Investments at cost		28,541,848
Shares authorized ($.10 par value)		30,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS


			Shares
Share Class	Net Assets		Outstanding
Class I	$	27,993,714		611,304	$	45.79


*		FEDERAL TAX DATA AS OF DECEMBER 31, 2005


Undistributed ordinary income		$	148,521

Capital Loss Carryforward Expiring December 31:


2008	2009	2010	2011	2012
$(4,632,319)	$(119,441)	$(1,273,958)	—	$(75,650)

STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 (Unaudited)


INVESTMENT INCOME
Interest	$	884,068
Dividends		9,750
Other income		2,444

		896,262


EXPENSES
Advisory fees		67,901
Administration expenses		14,447
Custodian fees and expenses		1,416
Fund accounting fees and expenses		9,413
Professional fees		6,090
Directors’ fees		1,205
Transfer agent fees		3,800
Other expenses		3,673

		107,945

NET INVESTMENT INCOME / (LOSS)		788,317


REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments and options		(175,676	)
Net change in unrealized appreciation / (depreciation) on investments and futures contracts		(616,274	)


NET REALIZED AND UNREALIZED GAIN / (LOSS)		(791,950	)

NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS	$	(3,633	)

TRANSACTIONS WITH AFFILIATES:


Percent of Current
Net Asset Value
Advisory	Administration	Expense
Fee	Fee⁽²⁾	Limit⁽¹⁾	Waiver	Reimbursement

0.47%	0.10%	1.00%	$—	$—


⁽¹⁾		The Adviser has agreed to pay other expenses of the portfolio, other than the advisory fees, to the extent that such expenses exceed the stated percentage of their average net assets.

⁽²⁾		The Adviser has agreed to temporarily waive administration fees for the Bond Portfolio, to the extent that the Portfolio’s total expense ratio exceeds .75%.

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


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

STATEMENTS OF CHANGES IN NET ASSETS


	For the
	Six Months
	Ended June 30,			Year Ended
	(Unaudited)			December 31,
	2006			2005

OPERATIONS
Net investment income / (loss)	$	788,317		$	1,719,705
Net realized gain / (loss) on investments and futures		(175,676	)		12,263
Net change in unrealized appreciation / (depreciation) on investments		(616,274	)		(1,033,336	)


		(3,633	)		698,632


DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(785,031	)		(1,532,165	)


		(785,031	)		(1,532,165	)


FUND SHARE TRANSACTIONS
Proceeds from shares sold		842,745			2,090,905
Reinvestment of distributions		785,031			1,532,165
Payments for shares redeemed		(3,628,056	)		(8,306,480	)


		(2,000,280	)		(4,683,410	)


NET INCREASE / (DECREASE) IN NET ASSETS		(2,788,944	)		(5,516,943	)
NET ASSETS
Beginning of period		30,782,658			36,299,601

End of period	$	27,993,714		$	30,782,658


ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	151,807		$	148,521


FUND SHARE TRANSACTIONS
Sold		18,129			43,801
Reinvestment of distributions		16,949			32,469
Redeemed		(77,681	)		(174,528	)


Net increase / (decrease) from fund share transactions		(42,603	)		(98,258	)


TOTAL COST OF PURCHASES OF:
Preferred and Common Stocks	$	47,423		$	395,207
U.S. Government Securities		1,532,380			1,399,196
Corporate Bonds		7,266,574			9,066,077


	$	8,846,377		$	10,860,480


TOTAL PROCEEDS FROM SALES OF:
Preferred and Common Stocks	$	184,112		$	100,249
U.S. Government Securities		3,799,071			4,282,208
Corporate Bonds		7,166,081			11,283,269


	$	11,149,264		$	15,665,726


*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	785,031		$	1,532,165


	$	785,031		$	1,532,165

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

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 June 30, 2006, the Summit S&P 500 Index Portfolio’s total return was 2.54% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 2.71% total return for the S&P 500 Index. The difference of 0.17% 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; broker’s 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.

Fund Data


Managers:		Gary R. Rodmaker
		Nick J. Kotsonis
		Kevin P. Aug
Inception Date:		December 29, 1995
Total Net Assets:		$285.47 Million
No. of Holdings:		500
Median Cap Size:		$11,902 Million
Average Price-to-book Ratio:		2.70 x
Dividend Yield:		1.92%

Top 10 Equity Holdings


	(% of net assets)
Exxon Mobil		3.18	%
General Electric Co.		2.94	%
Citigroup, Inc.		2.05	%
Bank of America Corp.		1.88	%
Microsoft Corp.		1.75	%
Procter & Gamble Co.		1.56	%
Johnson & Johnson		1.52	%
Pfizer, Inc.		1.47	%
American International Group, Inc.		1.31	%
Altria Group, Inc.		1.31	%

Sector Allocations


“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.

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL HIGHLIGHTS		S&P 500 INDEX PORTFOLIO

FINANCIAL HIGHLIGHTS


	For the Six Months
	Ended June 30,
	(Unaudited)			Year Ended December 31,
	2006			2005			2004			2003			2002			2001
Net asset value, beginning of period	$	82.85		$	80.48		$	73.21		$	57.82		$	75.15		$	102.95


Investment Activities:
Net investment income / (loss)		0.67			1.17			1.16	⁽²⁾		0.81			0.69			0.80
Net realized and unrealized gains / (losses)		1.45			2.39			6.41			15.17			(17.53	)		(12.15	)

Total from Investment Activities		2.12			3.56			7.57			15.98			(16.84	)		(11.35	)


DISTRIBUTIONS:
Net investment income		(1.25	)		(1.19	)		(0.30	)		(0.59	)		(0.38	)		(0.55	)
Net realized gains		—			—			—			—			(0.11	)		(15.90	)

Total Distributions		(1.25	)		(1.19	)		(0.30	)		(0.59	)		(0.49	)		(16.45	)

Net asset value, end of period	$	83.72		$	82.85		$	80.48		$	73.21		$	57.82		$	75.15

Total return		2.54	%		4.52	%		10.37	%		27.98	%		-22.55	%		-12.39	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets — net⁽¹⁾		0.39	%⁽³⁾		0.39	%		0.40	%		0.52	%		0.57	%		0.46	%
Ratio of expenses to average net assets — gross		0.42	%⁽³⁾		0.49	%		0.51	%		0.54	%		0.61	%		0.47	%
Ratio of net investment income / (loss) to average net assets		1.54	%⁽³⁾		1.49	%		1.69	%		1.25	%		1.04	%		0.88	%
Portfolio turnover rate		1.99	%		5.73	%		1.59	%		0.84	%		10.51	%		3.30	%
Net assets, end of period (000’s)	$	285,470		$	290,666		$	279,875		$	79,766		$	64,338		$	92,639


⁽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.

⁽³⁾		Annualized.

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

Summit Mutual Funds, Inc. — Pinnacle Series


S&P 500 INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS

JUNE 30, 2006 (Unaudited)


	SHARES		VALUE
COMMON STOCKS — 98.9%
CONSUMER DISCRETIONARY — 10.4%
Amazon.com, Inc.^(a)		7,727	$	298,880
Apollo Group, Inc.^(a)		3,509		181,310
Autonation, Inc.^(a)		3,821		81,922
Autozone, Inc.^(a)		1,406		124,009
Bed Bath & Beyond, Inc.^(a)		7,064		234,313
Best Buy Co., Inc.		9,842		539,735
Big Lots, Inc.^(a)		2,879		49,173
The Black & Decker Corp.		1,935		163,430
Brunswick Corp.		2,460		81,795
Carnival Corp.		10,616		443,112
CBS Corporation		18,880		510,704
Centex Corp.		3,067		154,270
Circuit City Stores, Inc.		3,803		103,518
Clear Channel Communications, Inc.		12,304		380,809
Coach, Inc.^(a)		9,576		286,322
Comcast Corp. — Class A^(a)		51,654		1,691,152
Cooper Tire & Rubber Co.		1,549		17,256
D.R. Horton, Inc.		6,651		158,427
Darden Restaurants, Inc.		3,152		124,189
Dillard’s, Inc. — Class A		1,628		51,852
Dollar General Corp.		7,625		106,598
Dow Jones & Co., Inc.		1,488		52,095
The E.W. Scripps Company		2,100		90,594
Eastman Kodak Co.		7,024		167,031
eBay, Inc.^(a)		28,269		827,999
Family Dollar Stores, Inc.		3,900		95,277
Federated Department Stores, Inc.		13,716		502,006
Ford Motor Co.		45,920		318,226
Fortune Brands, Inc.		3,692		262,169
Gannett Co., Inc.		5,950		332,784
The Gap, Inc.		13,451		234,047
General Motors Corp.		13,817		411,608
Genuine Parts Co.		4,402		183,387
The Goodyear Tire & Rubber Co.^(a)		4,453		49,428
H&R Block, Inc.		8,034		191,691
Harley-Davidson, Inc.		6,567		360,463
Harman International Industries, Inc.		1,680		143,422
Harrah’s Entertainment, Inc.		4,644		330,560
Hasbro, Inc.		4,208		76,207
Hilton Hotels Corp.		8,266		233,762
The Home Depot, Inc.		50,517		1,808,003
International Game Technology		8,295		314,712
Interpublic Group of Companies, Inc.^(a)		10,855		90,639
J.C. Penney Co., Inc. (Holding Co.)		5,893		397,836
Johnson Controls, Inc.		4,870		400,411
Jones Apparel Group, Inc.		2,751		87,454
KB Home		1,962		89,958
Kohl’s Corp.^(a)		8,322		491,997
Leggett & Platt, Inc.		4,458		111,361
Lennar Corp.		3,518		156,094
Limited Brands, Inc.		8,388		214,649
Liz Claiborne, Inc.		2,714		100,581
Lowe’s Companies, Inc.		18,958		1,150,182
Marriott International, Inc. — Class A		8,108		309,077
Mattel, Inc.		9,709		160,296
McClatchy Co.		1		8
McDonald’s Corp.		30,464		1,023,590
The McGraw-Hill Companies, Inc.		8,747		439,362
Meredith Corp.		1,060		52,512
New York Times Co. — Class A		3,674		90,160
Newell Rubbermaid, Inc.		6,939		179,234
News Corp. — Class A		57,905		1,110,618
Nike, Inc. — Class B		4,728		382,968
Nordstrom, Inc.		5,264		192,136
Office Depot, Inc.^(a)		7,034		267,292
OfficeMax, Inc.		1,789		72,902
Omnicom Group		4,170		371,505
Pulte Homes, Inc.		5,209		149,967
RadioShack Corp.		3,396		47,544
Sears Holdings Corp.^(a)		2,372		367,280
The Sherwin-Williams Co.		2,772		131,615
Snap-on, Inc.		1,462		59,094
The Stanley Works		1,836		86,696
Staples, Inc.		17,796		432,799
Starbucks Corp.^(a)		18,758		708,302
Starwood Hotels & Resorts Worldwide, Inc.		5,392		325,353
Target Corp.		21,102		1,031,255
Tiffany & Co.		3,602		118,938
Time Warner, Inc.		104,715		1,811,570
The TJX Companies, Inc.		11,175		255,461
Tribune Co.		6,287		203,887
Univision Communications, Inc.^(a)		5,635		188,773
VF Corp.		2,259		153,431
Viacom, Inc. — Class B^(a)		17,623		631,608
The Walt Disney Co.		53,660		1,609,800
Wendy’s International, Inc.		2,922		170,323
Whirlpool Corp.		1,930		159,515
Yum! Brands, Inc.		6,647		334,145

				29,688,425

CONSUMER STAPLES — 9.5%
Alberto-Culver Co.		1,907		92,909
Altria Group, Inc.		51,034		3,747,427
Anheuser-Busch Companies, Inc.		18,888		861,104
Archer-Daniels-Midland Co.		15,991		660,109
Avon Products, Inc.		11,009		341,279
Brown-Forman Corp. — Class B		2,099		149,974
Campbell Soup Co.		4,678		173,601
Clorox Co.		3,837		233,942
The Coca-Cola Co.		50,102		2,155,388
Coca-Cola Enterprises, Inc.		7,422		151,186
Colgate-Palmolive Co.		12,577		753,362
ConAgra Foods, Inc.		12,699		280,775
Constellation Brands, Inc. — Class A^(a)		4,957		123,925
Costco Wholesale Corp.		11,519		658,080
CVS Corp.		20,009		614,276
Dean Foods Co.^(a)		3,400		126,446
The Estee Lauder Companies Inc.		3,020		116,783
General Mills, Inc.		8,701		449,494
The Hershey Co.		4,478		246,603
HJ Heinz Co.		8,190		337,592
Kellogg Co.		5,960		288,643
Kimberly-Clark Corp.		11,240		693,508
The Kroger Co.		17,691		386,725
McCormick & Co., Inc.		3,386		113,600
Molson Coors Brewing Co. — Class B		1,447		98,222
Pepsi Bottling Group, Inc.		3,280		105,452

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		S&P 500 INDEX PORTFOLIO


	SHARES		VALUE

CONSUMER STAPLES — 9.5% (Continued)
PepsiCo, Inc.		40,387	$	2,424,835
Procter & Gamble Co.		80,199		4,459,064
Reynolds American, Inc.		2,162		249,279
Safeway, Inc.		11,005		286,130
Sara Lee Corp.		18,589		297,796
SUPERVALU, Inc.		5,128		157,430
Sysco Corp.		15,122		462,128
Tyson Foods, Inc. — Class A		6,344		94,272
UST, Inc.		3,946		178,320
Walgreen Co.		24,688		1,107,010
Wal-Mart Stores, Inc.		61,108		2,943,572
Whole Foods Market, Inc.		3,550		229,472
Wm. Wrigley Jr. Co.		5,427		246,169

				27,095,882

ENERGY — 10.0%
Anadarko Petroleum Corp.		11,202		534,223
Apache Corp.		8,074		551,051
Baker Hughes, Inc.		8,331		681,892
BJ Services Co.		7,862		292,938
Chesapeake Energy Corp.		8,900		269,225
Chevron Corp.		54,182		3,362,535
ConocoPhillips		40,349		2,644,070
Devon Energy Corp.		10,756		649,770
El Paso Corp.		16,606		249,090
EOG Resources, Inc.		6,058		420,062
Exxon Mobil Corp.		147,870		9,071,825
Halliburton Co.		12,616		936,233
Hess Corp.		6,060		320,271
Kerr-McGee Corp.		5,553		385,101
Kinder Morgan, Inc.		2,694		269,104
Marathon Oil Corp.		8,858		737,871
Murphy Oil Corp.		4,151		231,875
Nabors Industries Ltd.^(a)		7,586		256,331
National-Oilwell Varco, Inc.^(a)		4,385		277,658
Noble Corp.		3,458		257,344
Occidental Petroleum Corp.		10,471		1,073,801
Rowan Companies, Inc.		2,755		98,050
Schlumberger Ltd.		28,842		1,877,903
Sunoco, Inc.		3,327		230,528
Transocean, Inc.^(a)		7,943		637,982
Valero Energy Corp.		15,047		1,000,926
Weatherford International Ltd.^(a)		8,524		422,961
Williams Companies, Inc.		14,440		337,318
XTO Energy, Inc.		8,902		394,092

				28,472,030

FINANCIALS — 21.2%
ACE Ltd.		8,119		410,740
AFLAC, Inc.		12,192		565,099
The Allstate Corp.		15,538		850,395
AMBAC Financial Group, Inc.		2,705		219,375
American Express Co.		30,155		1,604,849
American International Group, Inc.		63,493		3,749,262
Ameriprise Financial, Inc.		5,976		266,948
AmSouth Bancorp		8,462		223,820
AON Corp.		7,791		271,283
Apartment Investment & Management Co.		2,415		104,932
Archstone-Smith Trust		5,355		272,409
Bank of America Corp.		111,555		5,365,795
The Bank of New York Co., Inc.		18,868		607,550
BB&T Corp.		13,378		556,391
The Bear Stearns Companies, Inc.		3,005		420,940
Boston Properties, Inc.		2,330		210,632
Capital One Financial Corp.		7,544		644,635
The Charles Schwab Corp.		25,217		402,968
Chubb Corp.		9,985		498,251
Cincinnati Financial Corp.		4,421		207,831
CIT Group, Inc.		4,986		260,718
Citigroup, Inc.		121,522		5,862,221
Comerica, Inc.		4,069		211,547
Commerce Bancorp, Inc.		4,600		164,082
Compass Bancshares, Inc.		3,145		174,862
Countrywide Financial Corp.		15,045		572,914
E*Trade Financial Corp.^(a)		10,308		235,229
Equity Office Properties Trust		8,949		326,728
Equity Residential		7,260		324,740
Fannie Mae		23,666		1,138,335
Federated Investors, Inc.		2,142		67,473
Fifth Third Bancorp		13,601		502,557
First Horizon National Corp.		3,164		127,193
Franklin Resources, Inc.		3,755		325,972
Freddie Mac		16,891		962,956
Genworth Financial, Inc.		8,916		310,633
Golden West Financial Corp.		6,418		476,216
The Goldman Sachs Group, Inc.		10,560		1,588,541
Hartford Financial Services Group, Inc.		7,566		640,084
Huntington Bancshares, Inc.		5,998		141,433
J.P. Morgan Chase & Co.		84,939		3,567,438
Janus Capital Group, Inc.		5,173		92,597
KeyCorp		9,882		352,590
Kimco Realty Corp.		5,335		194,674
Legg Mason, Inc.		3,140		312,493
Lehman Brothers Holdings, Inc.		13,086		852,553
Lincoln National Corp.		7,130		402,417
Loews Corp.		9,926		351,877
M&T Bank Corp.		2,043		240,911
Marsh & McLennan Companies, Inc.		13,433		361,213
Marshall & Ilsley Corp.		5,356		244,983
MBIA, Inc.		3,390		198,484
Mellon Financial Corp.		10,111		348,122
Merrill Lynch & Co., Inc.		22,593		1,571,569
Metlife, Inc.		18,541		949,485
MGIC Investment Corp.		2,186		142,090
Moody’s Corp.		6,072		330,681
Morgan Stanley		26,182		1,654,964
National City Corp.		13,262		479,952
North Fork Bancorporation, Inc.		11,370		343,033
Northern Trust Corp.		4,694		259,578
Plum Creek Timber Co., Inc.		4,653		165,181
PNC Financial Services Group		7,366		516,872
Principal Financial Group, Inc.		6,770		376,750
The Progressive Corp.		19,132		491,884
Prologis		6,087		317,254
Prudential Financial, Inc.		12,030		934,731
Public Storage, Inc.		2,090		158,631
Regions Financial Corp.		11,145		369,122
Safeco Corp.		2,913		164,147
Simon Property Group, Inc.		4,570		379,036

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

Summit Mutual Funds, Inc. — Pinnacle Series


S&P 500 INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE

FINANCIALS — 21.2% (Continued)
SLM Corp.		10,044	$	531,528
Sovereign Bancorp, Inc.		9,202		186,897
The St. Paul Travelers Companies, Inc.		17,025		758,974
State Street Corp.		8,262		479,940
SunTrust Banks, Inc.		8,888		677,799
Synovus Financial Corp.		7,869		210,732
T. Rowe Price Group, Inc.		6,564		248,185
Torchmark Corp.		2,639		160,240
UnumProvident Corp.		7,510		136,156
US Bancorp		43,515		1,343,743
Vornado Realty Trust		2,982		290,894
Wachovia Corp.		39,319		2,126,371
Washington Mutual, Inc.		23,486		1,070,492
Wells Fargo & Co.		41,066		2,754,707
XL Capital Ltd. — Class A		4,356		267,023
Zions Bancorporation		2,588		201,709

				60,439,241

HEALTH CARE — 12.1%
Abbott Laboratories		37,310		1,627,089
Aetna, Inc.		13,861		553,470
Allergan, Inc.		3,693		396,111
AmerisourceBergen Corp.		5,250		220,080
Amgen, Inc. ^(a)		28,825		1,880,255
Applera Corp. — Applied Biosystems Group		4,579		148,131
Barr Pharmaceuticals, Inc. ^(a)		2,730		130,194
Bausch & Lomb, Inc.		1,360		66,694
Baxter International, Inc.		16,195		595,328
Becton, Dickinson & Co.		6,183		377,967
Biogen Idec, Inc. ^(a)		8,547		395,983
Biomet, Inc.		6,014		188,178
Boston Scientific Corp. ^(a)		29,681		499,828
Bristol-Myers Squibb Co.		48,076		1,243,245
C.R. Bard, Inc.		2,663		195,091
Cardinal Health, Inc.		10,208		656,681
Caremark Rx, Inc. ^(a)		10,813		539,244
CIGNA Corp.		3,024		297,894
Coventry Health Care, Inc. ^(a)		4,074		223,826
Eli Lilly & Co.		27,626		1,526,889
Express Scripts, Inc. ^(a)		3,659		262,497
Fisher Scientific International, Inc. ^(a)		3,084		225,286
Forest Laboratories, Inc. ^(a)		8,147		315,207
Genzyme Corp. ^(a)		6,507		397,252
Gilead Sciences, Inc. ^(a)		11,123		658,037
HCA, Inc.		9,973		430,335
Health Management Associates, Inc. — Class A		5,888		116,052
Hospira, Inc. ^(a)		3,819		163,988
Humana, Inc. ^(a)		4,108		220,600
IMS Health, Inc.		4,976		133,606
Johnson & Johnson		72,368		4,336,291
King Pharmaceuticals, Inc. ^(a)		5,924		100,708
Laboratory Corp. Of America Holdings ^(a)		3,130		194,780
Manor Care, Inc.		2,000		93,840
McKesson Corp.		7,433		351,432
Medco Health Solutions, Inc. ^(a)		7,373		422,325
MedImmune, Inc. ^(a)		6,230		168,833
Medtronic, Inc.		29,512		1,384,703
Merck & Co., Inc.		53,356		1,943,759
Millipore Corp. ^(a)		1,304		82,139
Mylan Laboratories, Inc.		5,144		102,880
Patterson Companies, Inc. ^(a)		3,542		123,722
PerkinElmer, Inc.		3,294		68,845
Pfizer, Inc.		179,159		4,204,862
Quest Diagnostics, Inc.		4,064		243,515
Schering-Plough Corp.		36,197		688,829
St. Jude Medical, Inc. ^(a)		8,825		286,106
Stryker Corp.		7,149		301,044
Tenet Healthcare Corp. ^(a)		11,503		80,291
Thermo Electron Corp. ^(a)		4,087		148,113
UnitedHealth Group, Inc.		32,936		1,474,874
Waters Corp. ^(a)		2,611		115,928
Watson Pharmaceuticals, Inc. ^(a)		2,636		61,366
Wellpoint, Inc. ^(a)		15,581		1,133,829
Wyeth		32,895		1,460,867
Zimmer Holdings, Inc. ^(a)		6,241		353,990

				34,612,909

INDUSTRIALS — 11.6%
3M Co.		18,433		1,488,833
Allied Waste Industries, Inc. ^(a)		5,518		62,685
American Power Conversion Corp.		4,325		84,294
American Standard Companies, Inc.		4,455		192,768
Avery Dennison Corp.		2,794		162,220
Boeing Co.		19,542		1,600,685
Burlington Northern Santa Fe Corp.		8,915		706,514
Caterpillar, Inc.		16,366		1,218,940
Cendant Corp.		24,446		398,225
Cintas Corp.		3,491		138,802
Cooper Industries Ltd. — Class A		2,342		217,619
CSX Corp.		5,487		386,504
Cummins, Inc.		1,176		143,766
Danaher Corp.		5,926		381,160
Deere & Co.		5,917		494,010
Dover Corp.		5,121		253,131
Eaton Corp.		3,728		281,091
Emerson Electric Co.		10,035		841,033
Equifax, Inc.		3,294		113,116
FedEx Corp.		7,633		891,992
Fluor Corp.		2,194		203,888
General Dynamics Corp.		9,999		654,535
General Electric Co.		254,211		8,378,795
Goodrich Corp.		3,075		123,892
Honeywell International, Inc.		20,251		816,115
Illinois Tool Works, Inc.		10,316		490,010
Ingersoll-Rand Company Ltd. — Class A		8,179		349,898
ITT Industries, Inc.		4,690		232,155
L-3 Communications Holdings, Inc.		3,001		226,335
Lockheed Martin Corp.		8,657		621,053
Masco Corp.		9,708		287,745
Monster Worldwide, Inc. ^(a)		3,080		131,393
Navistar International Corp. ^(a)		1,560		38,392
Norfolk Southern Corp.		10,239		544,920
Northrop Grumman Corp.		8,405		538,424
Paccar, Inc.		4,233		348,715
Pall Corp.		3,146		88,088
Parker Hannifin Corp.		3,027		234,895
Pitney Bowes, Inc.		5,427		224,135
Raytheon Co.		10,907		486,125
Robert Half International, Inc.		4,282		179,844
Rockwell Automation, Inc.		4,427		318,788

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		S&P 500 INDEX PORTFOLIO


	SHARES		VALUE

INDUSTRIALS — 11.6% (Continued)
Rockwell Collins, Inc.		4,352	$	243,146
RR Donnelley & Sons Co.		5,392		172,274
Ryder System, Inc.		1,519		88,755
Southwest Airlines Co.		17,272		282,743
Textron, Inc.		3,179		293,040
Tyco International Ltd.		49,775		1,368,813
Union Pacific Corp.		6,675		620,508
United Parcel Service, Inc. — Class B		26,513		2,182,815
United Technologies Corp.		24,710		1,567,108
W.W. Grainger, Inc.		1,916		144,141
Waste Management, Inc.		13,327		478,173

				33,017,044

INFORMATION TECHNOLOGY — 14.4%
ADC Telecommunications, Inc.^(a)		2,946		49,670
Adobe Systems, Inc.^(a)		14,633		444,258
Advanced Micro Devices, Inc.^(a)		11,827		288,815
Affiliated Computer Services, Inc. — Class A^(a)		2,938		151,630
Agilent Technologies, Inc.^(a)		10,357		326,867
Altera Corp.^(a)		8,782		154,124
Analog Devices, Inc.		8,825		283,635
Andrew Corp.^(a)		3,902		34,572
Apple Computer, Inc.^(a)		20,790		1,187,525
Applied Materials, Inc.		38,242		622,580
Autodesk, Inc.^(a)		5,766		198,696
Automatic Data Processing, Inc.		14,087		638,845
Avaya, Inc.^(a)		10,055		114,828
BMC Software, Inc.^(a)		5,204		124,376
Broadcom Corp. — Class A^(a)		10,931		328,477
CA, Inc.		11,157		229,276
Ciena Corp.^(a)		14,363		69,086
Cisco Systems, Inc.^(a)		149,197		2,913,817
Citrix Systems, Inc.^(a)		4,519		181,393
Computer Sciences Corp.^(a)		4,673		226,360
Compuware Corp.^(a)		9,236		61,881
Comverse Technology, Inc.^(a)		5,091		100,649
Convergys Corp.^(a)		3,542		69,069
Corning, Inc.^(a)		38,084		921,252
Dell, Inc.^(a)		55,541		1,355,756
Electronic Arts, Inc.^(a)		7,607		327,405
Electronic Data Systems Corp.		12,855		309,291
EMC Corp.^(a)		57,840		634,505
First Data Corp.		18,715		842,924
Fiserv, Inc.^(a)		4,295		194,821
Freescale Semiconductor, Inc. — Class B^(a)		9,921		291,677
Gateway, Inc.^(a)		6,673		12,679
Google, Inc.^(a)		5,174		2,169,613
Hewlett-Packard Co.		68,197		2,160,481
Intel Corp.		142,167		2,694,065
International Business Machines Corp.		37,902		2,911,632
Intuit, Inc.^(a)		4,177		252,249
Jabil Circuit, Inc.		4,460		114,176
JDS Uniphase Corp.^(a)		41,333		104,572
Juniper Networks, Inc.^(a)		14,000		223,860
KLA-Tencor Corp.		4,997		207,725
Lexmark International, Inc. — Class A^(a)		2,708		151,188
Linear Technology Corp.		7,426		248,697
LSI Logic Corp.^(a)		9,866		88,301
Lucent Technologies, Inc.^(a)		109,940		266,055
Maxim Integrated Products, Inc.		8,007		257,105
Micron Technology, Inc.^(a)		16,436		247,526
Microsoft Corp.		214,489		4,997,594
Molex, Inc.		3,665		123,034
Motorola, Inc.		60,366		1,216,375
National Semiconductor Corp.		8,441		201,318
NCR Corp.^(a)		4,546		166,565
Network Appliance, Inc.^(a)		9,148		322,924
Novell, Inc.^(a)		8,286		54,936
Novellus Systems, Inc.^(a)		3,110		76,817
NVIDIA Corp.^(a)		8,550		182,029
Oracle Corp.^(a)		94,682		1,371,942
Parametric Technology Corp.^(a)		2,789		35,448
Paychex, Inc.		8,170		318,467
PMC — Sierra, Inc.^(a)		4,609		43,325
QLogic Corp.^(a)		4,128		71,167
QUALCOMM, Inc.		40,975		1,641,868
Sabre Holdings Corp. — Class A		3,316		72,952
SanDisk Corp.^(a)		4,599		234,457
Sanmina-SCI Corporation^(a)		13,023		59,906
Solectron Corp.^(a)		22,414		76,656
Sun Microsystems, Inc.^(a)		85,484		354,759
Symantec Corp.^(a)		25,314		393,380
Symbol Technologies, Inc.		6,327		68,268
Tektronix, Inc.		2,137		62,871
Tellabs, Inc.^(a)		10,959		145,864
Teradyne, Inc.^(a)		4,976		69,316
Texas Instruments, Inc.		38,066		1,153,019
Unisys Corp.^(a)		8,384		52,652
VeriSign, Inc.^(a)		6,103		141,406
Xerox Corp.^(a)		22,443		312,182
Xilinx, Inc.		8,399		190,237
Yahoo!, Inc.^(a)		30,644		1,011,252

				41,010,970

MATERIALS — 3.1%
Air Products & Chemicals, Inc.		5,607		358,399
Alcoa, Inc.		21,273		688,394
Allegheny Technologies, Inc.		2,128		147,343
Ashland, Inc.		1,877		125,196
Ball Corp.		2,640		97,786
Bemis Co.		2,704		82,796
Consol Energy, Inc.		4,500		210,240
The Dow Chemical Co.		23,511		917,634
Eastman Chemical Co.		2,061		111,294
Ecolab, Inc.		4,452		180,662
EI Du Pont de Nemours & Co.		22,522		936,915
Freeport-McMoRan Copper & Gold, Inc. — Class B		4,597		254,720
Hercules, Inc.^(a)		2,852		43,522
International Flavors & Fragrances, Inc.		2,065		72,771
International Paper Co.		12,048		389,150
Louisiana-Pacific Corp.		2,685		58,802
MeadWestvaco Corp.		4,429		123,702
Monsanto Co.		6,763		569,377
Newmont Mining Corp.		11,156		590,487
Nucor Corp.		7,617		413,222
Pactiv Corp.^(a)		3,637		90,016
Phelps Dodge Corp.		5,087		417,948
PPG Industries, Inc.		4,130		272,580
Praxair, Inc.		7,899		426,546
Rohm & Haas Co.		3,677		184,291

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

Summit Mutual Funds, Inc. — Pinnacle Series


S&P 500 INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE

MATERIALS — 3.1% (Continued)
Sealed Air Corp.		2,096	$	109,160
Sigma-Aldrich Corp.		1,707		123,996
Temple-Inland, Inc.		2,857		122,480
United States Steel Corp.		2,725		191,077
Vulcan Materials Co.		2,587		201,786
Weyerhaeuser Co.		6,140		382,215

				8,894,507

TELECOMMUNICATION SERVICES — 3.3%
Alltel Corp.		9,646		615,704
AT&T, Inc.		94,987		2,649,187
BellSouth Corp.		44,220		1,600,764
CenturyTel, Inc.		2,967		110,224
Citizens Communications Co.		7,942		103,643
Embarq Corp. ^(a)		3,720		152,483
Qwest Communications International, Inc. ^(a)		38,308		309,912
Sprint Nextel Corp.		72,807		1,455,412
Verizon Communications, Inc. ^(d)		71,319		2,388,473

				9,385,802

UTILITIES — 3.3%
The AES Corp. ^(a)		16,090		296,860
Allegheny Energy, Inc. ^(a)		4,116		152,580
Ameren Corp.		5,154		260,277
American Electric Power Co., Inc.		9,631		329,862
Centerpoint Energy, Inc.		7,811		97,638
CMS Energy Corp. ^(a)		5,546		71,765
Consolidated Edison, Inc.		6,171		274,239
Constellation Energy Group, Inc.		4,501		245,395
Dominion Resources, Inc.		8,494		635,266
DTE Energy Co.		4,498		183,249
Duke Energy Corporation		30,194		886,798
Dynegy, Inc. — Class A ^(a)		7,604		41,594
Edison International		7,963		310,557
Entergy Corp.		5,250		371,438
Exelon Corp.		16,341		928,659
FirstEnergy Corp.		8,069		437,420
FPL Group, Inc.		9,948		411,648
KeySpan Corp.		4,408	$	178,083
Nicor, Inc.		1,117		46,356
NiSource, Inc.		6,667		145,607
Peoples Energy Corp.		965		34,653
PG&E Corp.		8,644		339,536
Pinnacle West Capital Corp.		2,498		99,695
PPL Corp.		9,303		300,487
Progress Energy, Inc.		6,340		271,796
Public Service Enterprise Group, Inc.		6,315		417,548
Sempra Energy		6,478		294,619
The Southern Co.		18,142		581,451
TECO Energy, Inc.		5,257		78,540
TXU Corp.		11,304		675,866
Xcel Energy, Inc.		9,910		190,074

				9,589,556


Total Common Stock (Cost $225,618,295)				282,206,366


SHORT TERM INVESTMENTS ^(d)— 1.1%
MONEY MARKET FUNDS — 1.0%
Northern Institutional Diversified Assets Portfolio		2,876,481		2,876,481


	PRINCIPAL
	AMOUNT		VALUE

U.S. TREASURY BILLS — 0.1% 4.800%, 09/14/2006	$	350,000	$	346,637

Total Short Term Investments (Cost $3,223,014)				3,223,118

TOTAL INVESTMENTS (Cost $228,841,309) ^(b) — 100.0%				285,429,484

NORTHERN INSTITUTIONAL LIQUID ASSET PORTFOLIO^(c) — 4.7%				13,398,025

LIABILITIES IN EXCESS OF OTHER ASSETS — (4.7)%				(13,357,773	)


TOTAL NET ASSETS — 100.0%			$	285,469,736


^{^(a)}		Non income producing security.

^{^(b)}		For federal income tax purposes, cost is $229,531,970 and gross unrealized appreciation and depreciation of securities as of June 30, 2006 was $66,111,382 and ($10,213,868), respectively, with a net appreciation / (depreciation) of $55,897,514.

^{^(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 $17,528,343, $13,398,025, and $4,503,657, respectively.

^(d)		Securities and other assets with an aggregate value of $3,518,350 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of June 30, 2006:


			Unrealized
			Appreciation/
Type	Contracts		(Depreciation)

S&P 500 Index (09/06)		11	$	47,261

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

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL INVESTMENTS		S&P 500 INDEX PORTFOLIO

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)


ASSETS
Investments in securities, at value	$	285,429,484
Collateral for securities loaned, at fair value		13,398,025
Receivables:
Shares sold		8,645
Securities sold		35,224
Interest and dividends		329,569
Prepaid expenses and other		5,645

		299,206,592


LIABILITIES
Payables:
Shares redeemed		130,804
Payable upon return of securities loaned		13,398,025
Advisory fees		67,210
Administration expenses		24,411
Directors’ fees		260
Custodian fees		9,833
Fund accounting fees		2,289
Professional fees		19,422
Royalty fees		56,834
Variation margin		8,800
Other accrued expenses		18,968

		13,736,856


NET ASSETS*
Paid-in capital		231,660,749
Accumulated net investments income / (loss)		1,566,136
Accumulated net realized gain / (loss) on investments and futures contracts		(4,392,585	)
Net unrealized appreciation / (depreciation) on investments and futures contracts		56,635,436

	$	285,469,736


Investments at cost	$	228,841,309

Shares authorized ($.10 par value)		30,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS


			Shares
Share Class	Net Assets		Outstanding
Class I	$	285,469,736		3,409,731	$	83.72


*		FEDERAL TAX DATA AS OF DECEMBER 31, 2005


Undistributed ordinary income	$	3,650,855
Unrealized appreciation	$	50,147,959

Capital Loss Carryforward Expiring December 31:


2010	2011		2012		2013
$ (1,959,815)	$	—	$	—	$ (1,007,716)

STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 (Unaudited)


INVESTMENT INCOME
Interest	$	34,968
Dividends		2,779,275
Other income		9,485

		2,823,728


EXPENSES
Advisory fees		366,514
Administration expenses		146,606
Custodian fees and expenses		12,333
Fund accounting fees and expenses		8,019
Professional fees		13,687
Directors’ fees		12,226
Transfer agent fees		4,142
Royalty fee		21,720
Other expenses		23,630

		608,877
Reimbursements and waivers		(37,115	)

		571,762

NET INVESTMENT INCOME / (LOSS)		2,251,966


REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments and options		(771,440	)
Net realized gain / (loss) on futures contracts		2,035

		(769,405	)


Net change in unrealized appreciation / (depreciation) on investments and futures contracts		5,831,829

NET REALIZED AND UNREALIZED GAIN / (LOSS)		5,062,424

NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS	$	7,314,390

TRANSACTIONS WITH AFFILIATES:


Percent of Current
Net Asset Value
Advisory	Administration			Expense
Fee	Fee			Limit⁽¹⁾⁽²⁾			Waiver		Reimbursement

0.25%		0.10	%		0.30	%	$	37,115	$	—


⁽¹⁾		The Adviser has agreed to pay other expenses of the portfolio, other than the advisory fees, to the extent that such expenses exceed the stated percentage of their average net assets.

⁽²⁾		The Adviser has voluntarily agreed to waive its fees and/or reimburse expenses of the portfolio to the extent necessary, to limit all expenses to 0.39% of the average daily net assets of the portfolio until December 31, 2006.

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

Summit Mutual Funds, Inc. — Pinnacle Series


S&P 500 INDEX PORTFOLIO		FINANCIAL STATEMENTS

STATEMENTS OF CHANGES IN NET ASSETS


	For the
	Six Months
	Ended June 30,			Year Ended
	(Unaudited)			December 31,
	2006			2005

OPERATIONS
Net investment income / (loss)	$	2,251,966		$	4,145,303
Net realized gain / (loss) on investments and futures		(769,405	)		(1,290,978	)
Net change in unrealized appreciation / (depreciation) on investments		5,831,829			9,592,113


		7,314,390			12,446,438


DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(4,336,685	)		(4,182,243	)


		(4,336,685	)		(4,182,243	)


FUND SHARE TRANSACTIONS
Proceeds from shares sold		7,984,931			29,718,045
Reinvestment of distributions		4,336,685			4,182,243
Payments for shares redeemed		(20,495,272	)		(31,374,244	)


		(8,173,656	)		2,526,044


NET INCREASE / (DECREASE) IN NET ASSETS		(5,195,951	)		10,790,239
NET ASSETS
Beginning of period		290,665,687			279,875,448


End of period	$	285,469,736		$	290,665,687


ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	1,566,136		$	3,650,855


FUND SHARE TRANSACTIONS
Sold		94,077			370,255
Reinvestment of distributions		51,092			53,881
Redeemed		(243,661	)		(393,310	)


Net increase / (decrease) from fund share transactions		(98,492	)		30,826


TOTAL COST OF PURCHASES OF:
Common Stocks	$	5,825,439		$	17,809,090

	$	5,825,439		$	17,809,090


TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	16,336,506		$	15,832,047

	$	16,336,506		$	15,832,047


*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	4,336,685		$	4,182,243

	$	4,336,685		$	4,182,243

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

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 June 30, 2006, the Summit S&P MidCap 400 Index Portfolio’s total return was 3.97% (before the impact of any product or contract-level fees). This compares to a 4.24% total return for the S&P MidCap 400 Index. The difference of 0.27% 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; broker’s 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.

Fund Data


Managers:		Gary R. Rodmaker
		Nick J. Kotsonis
		Kevin P. Aug
Inception Date:		May 3, 1999
Total Net Assets:		$138.91 Million
No. of Holdings:		400
Median Cap Size:		$2,681 Million
Average Price-to-book Ratio:		2.52 x
Dividend Yield:		1.22%

Top 10 Equity Holdings


	(% of net assets)
Peabody Energy Corp.		1.28	%
Expeditors International Washington, Inc.		1.04	%
Cognizant Technology Solutions Corp.		0.81	%
C.H. Robinson Worldwide, Inc.		0.79	%
Smith International, Inc.		0.78	%
Noble Energy, Inc.		0.72	%
Precision Castparts Corp.		0.70	%
Microchip Technology, Inc.		0.62	%
ENSCO International, Inc.		0.61	%
Questar Corp.		0.60	%

Sector Allocations

Summit Mutual Funds, Inc. — Pinnacle Series


S&P MIDCAP 400 INDEX PORTFOLIO		FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS


	For the Six Months
	Ended June 30,
	(Unaudited)			Year Ended December 31,
	2006			2005			2004			2003			2002			2001

Net asset value, beginning of period	$	66.08		$	60.76		$	52.62		$	39.29		$	46.70		$	59.55

Investment Activities:
Net investment income / (loss)		0.40			0.52			0.35	⁽²⁾		0.29			0.22			0.30
Net realized and unrealized gains / (losses)		2.28			6.50			7.93			13.28			(7.25	)		(1.00	)

Total from Investment Activities		2.68			7.02			8.28			13.57			(7.03	)		(0.70	)


DISTRIBUTIONS:
Net investment income		(0.59	)		(0.33	)		(0.14	)		(0.24	)		(0.23	)		(0.20	)
Net realized gains		(2.57	)		(1.37	)		—			—			(0.15	)		(11.95	)

Total Distributions		(3.16	)		(1.70	)		(0.14	)		(0.24	)		(0.38	)		(12.15	)

Net asset value, end of period	$	65.60		$	66.08		$	60.76		$	52.62		$	39.29		$	46.70

Total return		3.97	%		11.94	%		15.76	%		34.74	%		-15.15	%		-1.25	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net⁽¹⁾		0.52	%⁽³⁾		0.54	%		0.56	%		0.60	%		0.60	%		0.60	%
Ratio of expenses to average net assets – gross		0.52	%⁽³⁾		0.54	%		0.56	%		0.67	%		0.81	%		0.82	%
Ratio of net investment income / (loss) to average net assets		1.26	%⁽³⁾		0.91	%		0.68	%		0.58	%		0.53	%		0.65	%
Portfolio turnover rate		7.01	%		19.07	%		15.08	%		8.54	%		27.73	%		18.57	%
Net assets, end of period (000’s)	$	138,911		$	127,372		$	99,775		$	39,944		$	23,180		$	20,588


⁽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.

⁽³⁾		Annualized.

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		S&P MIDCAP 400 INDEX PORTFOLIO

JUNE 30, 2006 (Unaudited)


	SHARES		VALUE

COMMON STOCKS — 95.1%
CONSUMER DISCRETIONARY — 13.7%
99 Cents Only Stores^(a)		5,794	$	60,605
Abercrombie & Fitch Co. — Class A		10,580		586,449
Advance Auto Parts, Inc.		13,074		377,839
Aeropostale, Inc.^(a)		6,565		189,663
American Eagle Outfitters, Inc.		15,888		540,828
American Greetings Corp. — Class A		6,844		143,792
AnnTaylor Stores Corp.^(a)		8,784		381,050
Applebee’s International, Inc.		8,979		172,576
ArvinMeritor, Inc.		8,508		146,252
Bandag, Inc.		1,411		51,628
Barnes & Noble, Inc.		6,361		232,176
Beazer Homes USA, Inc.		4,967		227,836
Belo Corp.		11,031		172,084
Blyth, Inc.		3,221		59,460
Bob Evans Farms, Inc.		4,334		130,063
Borders Group, Inc.		8,065		148,880
BorgWarner, Inc.		6,916		450,232
Boyd Gaming Corp.		5,278		213,020
Brinker International, Inc.		10,354		375,850
Callaway Golf Co.		7,932		103,037
Career Education Corp.^(a)		11,864		354,615
Carmax, Inc.^(a)		12,659		448,888
Catalina Marketing Corp.		4,738		134,843
CBRL Group, Inc.		3,668		124,419
The Cheesecake Factory, Inc.^(a)		9,526		256,726
Chico’s FAS, Inc.^(a)		21,869		590,026
Claire’s Stores, Inc.		11,997		306,043
Corinthian Colleges, Inc.^(a)		10,386		149,143
DeVry, Inc.^(a)		7,072		155,372
Dollar Tree Stores, Inc.^(a)		12,849		340,498
Emmis Communications Corp. — Class A^(a)		4,458		69,723
Entercom Communications Corp.		4,180		109,349
Foot Locker, Inc.		18,842		461,441
Furniture Brands International, Inc.		6,143		128,020
GameStop Corp.^(a)		6,901		289,842
Gentex Corp.		18,670		261,380
GTECH Holdings Corp.		15,271		531,125
Harte-Hanks, Inc.		6,860		175,890
Hovnanian Enterprises, Inc. — Class A^(a)		4,322		130,006
International Speedway Corp. — Class A		4,254		197,258
ITT Educational Services, Inc.^(a)		4,310		283,641
Laureate Education, Inc.^(a)		6,025		256,846
Lear Corp.		8,112		180,167
Lee Enterprises, Inc.		5,525		148,899
MDC Holdings, Inc.		3,933		204,241
Media General, Inc. — Class A		2,909		121,858
Michaels Stores, Inc.		16,140		665,614
Modine Manufacturing Co.		4,054		94,701
Mohawk Industries, Inc.^(a)		6,382		448,974
O’Reilly Automotive, Inc.^(a)		13,536		422,188
OSI Restaurant Partners, Inc.		7,932		274,447
Pacific Sunwear Of California, Inc.^(a)		8,959		160,635
Payless ShoeSource, Inc.^(a)		8,301		225,538
PETsMART, Inc.		16,961		434,202
Pier 1 Imports, Inc.		10,481		73,157
Polo Ralph Lauren Corp.		7,347		403,350
The Reader’s Digest Association, Inc.		11,715		163,541
Regis Corp.		5,489		195,463
Rent-A-Center, Inc.^(a)		8,366		207,979
Ross Stores, Inc.		17,457		489,669
Ruby Tuesday, Inc.		7,014		171,212
Ryland Group, Inc.		5,560		242,249
Saks, Inc.		16,798		271,624
Scholastic Corp.^(a)		4,345		112,840
Scientific Games Corporation — Class A^(a)		7,880		280,686
Sotheby’s Holdings^(a)		5,671		148,864
Thor Industries, Inc.		4,179		202,473
Timberland Co.^(a)		6,628		172,991
Toll Brothers, Inc.^(a)		14,199		363,068
Tupperware Corp.		6,446		126,922
Urban Outfitters, Inc.^(a)		13,334		233,212
Valassis Communications, Inc.^(a)		5,747		135,572
The Washington Post Co. — Class B		708		552,247
Westwood One, Inc.		7,715		57,862
Williams-Sonoma, Inc.		13,939		474,623

				18,979,482

CONSUMER STAPLES — 1.8%
BJ’s Wholesale Club, Inc.^(a)		8,172		231,676
Church & Dwight, Inc.		7,787		283,602
Energizer Holdings, Inc.^(a)		7,561		442,848
Hormel Foods Corp.		8,826		327,797
The JM Smucker Co.		7,027		314,107
Lancaster Colony Corp.		3,027		119,476
PepsiAmericas, Inc.		7,363		162,796
Ruddick Corp.		4,176		102,354
Smithfield Foods, Inc.^(a)		11,948		344,461
Tootsie Roll Industries, Inc.		3,130		91,177
Universal Corp.		3,113		115,866

				2,536,160

ENERGY — 10.0%
Arch Coal, Inc.		17,196		728,595
Cameron International Corporation^(a)		14,003		668,923
Denbury Resources, Inc.^(a)		14,477		458,487
ENSCO International, Inc.		18,542		853,303
FMC Technologies, Inc.^(a)		8,283		558,771
Forest Oil Corp.^(a)		6,599		218,823
Grant Prideco, Inc.^(a)		15,783		706,289
Hanover Compressor Co.^(a)		11,092		208,308
Helmerich & Payne, Inc.		6,307		380,060
Newfield Exploration Co.^(a)		15,521		759,598
Noble Energy, Inc.		21,277		997,040
Overseas Shipholding Group, Inc.		3,580		211,757
Patterson-UTI Energy, Inc.		20,869		590,801
Peabody Energy Corp.		31,946		1,780,990
Pioneer Natural Resources Co.		15,532		720,840
Plains Exploration & Production Co.^(a)		9,465		383,711
Pogo Producing Co.		7,230		333,303
Pride International, Inc.^(a)		19,557		610,765
Quicksilver Resources, Inc.^(a)		8,108		298,455
Smith International, Inc.		24,293		1,080,310
Southwestern Energy Co.^(a)		20,232		630,429
Tidewater, Inc.		7,305		359,406
Western Gas Resources, Inc.		7,005		419,249

				13,958,213

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

Summit Mutual Funds, Inc. — Pinnacle Series


S&P MIDCAP 400 INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE

FINANCIALS — 16.8%
AG Edwards, Inc.		9,145	$	505,901
AMB Property Corp.		10,572		534,415
American Financial Group, Inc.		5,662		242,900
AmeriCredit Corp. ^(a)		15,577		434,910
AmerUs Group Co.		4,669		273,370
Arthur J. Gallagher & Co.		11,561		292,956
Associated Banc-Corp		15,963		503,313
Astoria Financial Corp.		10,431		317,624
Bank of Hawaii Corp.		6,212		308,115
Brown & Brown, Inc.		13,430		392,425
Cathay General Bancorp		6,058		220,390
City National Corp.		5,019		326,687
The Colonial BancGroup, Inc.		18,645		478,804
Cullen/Frost Bankers, Inc.		5,731		328,386
Developers Diversified Realty Corp.		13,156		686,480
Eaton Vance Corp.		15,605		389,501
Everest Re Group Ltd.		7,830		677,843
Fidelity National Financial, Inc.		20,963		816,509
First American Corp.		11,561		488,683
First Niagara Financial Group, Inc.		13,677		191,752
FirstMerit Corp.		9,640		201,862
GATX Corp.		6,133		260,652
Greater Bay Bancorp		6,102		175,432
Hanover Insurance Group Inc		6,207		294,584
HCC Insurance Holdings, Inc.		13,418		395,026
Highwoods Properties, Inc.		6,527		236,147
Horace Mann Educators Corp.		5,187		87,920
Hospitality Properties Trust		8,689		381,621
IndyMac Bancorp, Inc.		7,788		357,080
Investors Financial Services Corp.		7,888		354,171
Jefferies Group, Inc.		12,186		361,071
Leucadia National Corp.		19,836		579,013
Liberty Property Trust		10,661		471,216
The Macerich Co.		8,628		605,686
Mack-Cali Realty Corp.		7,504		344,584
Mercantile Bankshares Corp.		14,865		530,235
Mercury General Corp.		4,286		241,602
New Plan Excel Realty Trust		12,618		311,538
New York Community Bancorp, Inc.		31,622		522,079
Ohio Casualty Corp.		7,658		227,672
Old Republic International Corp.		27,746		592,932
The PMI Group, Inc.		10,819		482,311
Potlatch Corp.		4,972		187,693
Protective Life Corp.		8,423		392,680
Radian Group, Inc.		10,043		620,457
Raymond James Financial, Inc.		10,492		317,593
Rayonier, Inc.		9,220		349,530
Regency Centers Corp.		8,234		511,743
SEI Investments Co.		7,675		375,154
Stancorp Financial Group, Inc.		6,600		336,006
SVB Financial Group ^(a)		4,215		191,614
TCF Financial Corp.		13,685		361,968
Texas Regional Bancshares, Inc. — Class A		5,496		208,408
United Dominion Realty Trust, Inc.		16,219		454,294
Unitrin, Inc.		5,461		238,045
Waddell & Reed Financial, Inc.		10,124		208,149
Washington Federal, Inc.		10,539		244,399
Webster Financial Corp.		6,419		304,517
Weingarten Realty Investors		9,695		371,125
Westamerica Bancorporation		3,816		186,870
Wilmington Trust Corp.		8,200		345,876
WR Berkley Corp.		20,431		697,310

				23,328,829

HEALTH CARE — 9.8%
Advanced Medical Optics, Inc. ^(a)		8,055		408,388
Affymetrix, Inc. ^(a)		8,142		208,435
Apria Healthcare Group, Inc. ^(a)		5,120		96,768
Beckman Coulter, Inc.		7,635		424,124
Cephalon, Inc. ^(a)		7,245		435,425
Charles River Laboratories International, Inc. ^(a)		8,737		321,522
Community Health Systems, Inc. ^(a)		11,776		432,768
Covance, Inc. ^(a)		7,614		466,129
Cytyc Corp. ^(a)		13,930		353,265
Dentsply International, Inc.		9,485		574,791
Edwards Lifesciences Corp. ^(a)		7,154		325,006
Gen-Probe, Inc. ^(a)		6,211		335,270
Health Net, Inc. ^(a)		13,879		626,914
Henry Schein, Inc. ^(a)		10,566		493,749
Hillenbrand Industries, Inc.		7,407		359,240
Intuitive Surgical, Inc. ^(a)		4,499		530,747
Invitrogen Corp. ^(a)		6,411		423,575
LifePoint Hospitals, Inc. ^(a)		6,893		221,472
Lincare Holdings, Inc. ^(a)		11,545		436,863
Martek Biosciences Corp. ^(a)		3,871		112,065
Medicis Pharmaceutical		6,568		157,632
Millennium Pharmaceuticals, Inc. ^(a)		37,686		375,729
Mine Safety Appliances Co.		3,176		127,675
Omnicare, Inc.		14,479		686,594
Par Pharmaceutical Companies, Inc. ^(a)		4,134		76,314
PDL BioPharma, Inc. ^(a)		13,646		251,223
Perrigo Co.		9,999		160,984
Pharmaceutical Product Development, Inc.		12,152		426,778
Sepracor, Inc. ^(a)		12,935		739,106
Steris Corp.		8,179		186,972
Techne Corp. ^(a)		4,750		241,870
Triad Hospitals, Inc. ^(a)		10,400		411,632
Universal Health Services, Inc.		6,588		331,113
Valeant Pharmaceuticals International		11,209		189,656
Varian Medical Systems, Inc. ^(a)		15,966		755,990
Varian, Inc. ^(a)		3,759		156,036
VCA Antech, Inc. ^(a)		9,976		318,534
Vertex Pharmaceuticals, Inc. ^(a)		13,249		486,371

				13,666,725

INDUSTRIALS — 15.3%
Adesa, Inc.		10,835		240,970
AGCO Corp. ^(a)		10,940		287,941
Airtran Holdings, Inc. ^(a)		10,806		160,577
Alaska Air Group, Inc. ^(a)		4,789		188,782
Alexander & Baldwin, Inc.		5,338		236,313
Alliant Techsystems, Inc. ^(a)		4,256		324,946
Ametek, Inc.		8,531		404,199
Banta Corp.		2,923		135,423
The Brink’s Co.		5,838		329,322
C.H. Robinson Worldwide, Inc.		20,565		1,096,115
Carlisle Companies, Inc.		3,701		293,489
ChoicePoint, Inc. ^(a)		10,366		432,988
Con-way Inc.		5,803		336,168

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		S&P MIDCAP 400 INDEX PORTFOLIO


	SHARES		VALUE

INDUSTRIALS — 15.3% (Continued)
Copart, Inc.^(a)		8,399	$	206,279
The Corporate Executive Board Co.		4,771		478,054
Crane Co.		6,107		254,051
Deluxe Corp.		6,062		105,964
Donaldson Co, Inc.		8,276		280,308
DRS Technologies, Inc.		4,812		234,585
Dun & Bradstreet Corp.^(a)		8,090		563,711
Dycom Industries, Inc.^(a)		4,869		103,661
Expeditors International Washington, Inc.		25,750		1,442,258
Fastenal Co.		14,964		602,900
Federal Signal Corp.		5,816		88,054
Flowserve Corp.^(a)		6,791		386,408
Graco, Inc.		8,277		380,576
Granite Construction, Inc.		3,973		179,858
Harsco Corp.		5,055		394,088
Herman Miller, Inc.		8,198		211,262
HNI Corp.		6,261		283,936
Hubbell, Inc. — Class B		7,322		348,893
Jacobs Engineering Group, Inc.^(a)		7,053		561,701
JB Hunt Transport Services, Inc.		14,905		371,284
JetBlue Airways Corp.^(a)		18,613		225,962
Joy Global, Inc.		14,857		773,901
Kelly Services, Inc.		2,339		63,551
Kennametal, Inc.		4,754		295,937
Korn/Ferry International^(a)		5,124		100,379
Lincoln Electric Holdings, Inc.		5,000		313,250
Manpower, Inc.		10,606		685,148
MSC Industrial Direct Co., Inc. Class A		6,545		311,346
Navigant Consulting, Inc.^(a)		6,073		137,553
Nordson Corp.		4,043		198,835
Oshkosh Truck Corporation		8,500		403,920
Pentair, Inc.		12,252		418,896
Precision Castparts Corp.		16,191		967,574
Quanta Services, Inc.^(a)		14,255		247,039
Republic Services, Inc.		14,616		589,609
Rollins, Inc.		3,560		69,918
Roper Industries, Inc.		10,363		484,470
Sequa Corp.^(a)		780		63,570
SPX Corp.		7,210		403,400
Stericycle, Inc.^(a)		5,318		346,202
Swift Transportation Co., Inc.^(a)		6,437		204,439
Tecumseh Products Company — Class A^(a)		2,237		42,950
Teleflex, Inc.		4,897		264,536
Thomas & Betts Corp.^(a)		6,399		328,269
Timken Co.		10,138		339,724
Trinity Industries, Inc.		8,478		342,511
United Rentals, Inc.^(a)		8,082		258,462
Werner Enterprises, Inc.		6,259		126,870
YRC Worldwide, Inc.^(a)		7,020		295,612

				21,248,897

INFORMATION TECHNOLOGY — 14.9%
3Com Corp.^(a)		47,162		241,469
Activision, Inc.^(a)		33,413		380,240
Acxiom Corp.		9,318		232,950
ADTRAN, Inc.		8,241		184,846
Advent Software, Inc.^(a)		1,943		70,084
Alliance Data Systems Corp.^(a)		8,064		474,324
Amphenol Corp. — Class A		10,731		600,507
Arrow Electronics, Inc.^(a)		14,569		469,122
Atmel Corp.^(a)		51,344		284,959
Avnet, Inc.^(a)		17,688		354,114
Avocent Corp.^(a)		5,951		156,214
The BISYS Group, Inc.^(a)		14,627		200,390
Cabot Microelectronics Corp.^(a)		2,941		89,142
Cadence Design Systems, Inc.^(a)		34,229		587,027
CDW Corp.		7,563		413,318
Ceridian Corp.^(a)		17,539		428,653
CheckFree Corp.^(a)		11,022		546,250
Cognizant Technology Solutions Corp.^(a)		16,772		1,129,930
CommScope, Inc.^(a)		6,838		214,850
Credence Systems Corp.^(a)		12,074		42,259
Cree, Inc.^(a)		9,211		218,853
CSG Systems International, Inc.^(a)		5,875		145,347
Cypress Semiconductor Corp.^(a)		16,352		237,758
Diebold, Inc.		8,372		340,071
DST Systems, Inc.^(a)		7,370		438,515
F5 Networks, Inc.^(a)		4,827		258,148
Fair Isaac Corp.		7,854		285,179
Fairchild Semiconductor International, Inc.^(a)		14,681		266,754
Fidelity National Information Services, Inc.		11,300		400,020
Gartner, Inc. — Class A^(a)		7,048		100,082
Harris Corp.		16,199		672,420
Imation Corp.		4,216		173,067
Ingram Micro, Inc.^(a)		13,996		253,747
Integrated Device Technology, Inc.^(a)		24,193		343,057
International Rectifier Corp.^(a)		8,564		334,681
Intersil Corp. — Class A		17,175		399,319
Jack Henry & Associates, Inc.		9,064		178,198
Kemet Corp.^(a)		10,476		96,589
Lam Research Corp.^(a)		16,891		787,458
Lattice Semiconductor Corp.^(a)		13,738		84,901
Macrovision Corp.^(a)		6,204		133,510
McAfee, Inc.^(a)		19,024		461,712
McData Corp. — Class A^(a)		18,497		75,468
MEMC Electronic Materials, Inc.^(a)		19,959		748,462
Mentor Graphics Corp.^(a)		9,559		124,076
Micrel, Inc.^(a)		7,711		77,187
Microchip Technology, Inc.		25,723		863,007
MoneyGram International, Inc.		10,307		349,923
MPS Group, Inc.^(a)		12,234		184,244
National Instruments Corp.		6,693		183,388
Newport Corp.^(a)		4,822		77,731
Palm, Inc.^(a)		10,600		170,660
Plantronics, Inc.		5,682		126,197
Plexus Corp.^(a)		5,370		183,708
Polycom, Inc.^(a)		10,500		230,160
Powerwave Technologies, Inc.^(a)		13,353		121,779
The Reynolds & Reynolds Co. — Class A		6,187		189,755
RF Micro Devices, Inc.^(a)		22,892		136,665
RSA Security, Inc.^(a)		8,564		232,855
Semtech Corp.^(a)		8,799		127,146
Silicon Laboratories, Inc.^(a)		5,465		192,095
SRA International, Inc. — Class A^(a)		4,535		120,767
Sybase, Inc.^(a)		11,005		213,497
Synopsys, Inc.^(a)		17,372		326,072
Tech Data Corp.^(a)		6,819		261,236
Transaction Systems Architects, Inc.^(a)		4,494		187,355

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

Summit Mutual Funds, Inc. — Pinnacle Series


S&P MIDCAP 400 INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE

INFORMATION TECHNOLOGY — 14.9% (Continued)
Triquint Semiconductor, Inc. ^(a)		16,936	$	75,535
UTstarcom, Inc. ^(a)		12,708		98,995
Vishay Intertechnology, Inc. ^(a)		22,262		350,181
Western Digital Corp. ^(a)		26,492		524,807
Wind River Systems, Inc. ^(a)		9,025		80,323
Zebra Technologies Corp. — Class A ^(a)		8,509		290,667

				20,633,975

MATERIALS — 4.8%
Airgas, Inc.		8,140		303,215
Albemarle Corp.		4,622		221,301
Bowater, Inc.		6,754		153,654
Cabot Corp.		7,640		263,733
Chemtura Corp.		28,964		270,524
Commercial Metals Company		14,100		362,370
Cytec Industries, Inc.		4,819		258,588
Ferro Corp.		5,069		80,901
Florida Rock Industries, Inc.		5,704		283,318
FMC Corp.		4,676		301,088
Glatfelter		5,346		84,841
Longview Fibre Co.		6,171		117,804
Lubrizol Corp.		8,237		328,245
Lyondell Chemical Co.		24,755		560,948
Martin Marietta Materials, Inc.		5,527		503,786
Minerals Technologies, Inc.		2,412		125,424
Olin Corp.		8,724		156,421
Packaging Corp of America		7,270		160,085
Reliance Steel & Aluminum Co.		3,870		321,017
RPM International, Inc.		14,315		257,670
The Scotts Miracle-Gro Co. — Class A		5,498		232,675
Sensient Technologies Corp.		5,684		118,853
Sonoco Products Co.		11,925		377,426
Steel Dynamics, Inc.		5,233		344,017
Valspar Corp.		12,273		324,130
Worthington Industries		8,636		180,924

				6,692,958


TELECOMMUNICATION SERVICES — 0.5%
Cincinnati Bell, Inc. ^(a)		29,722		121,860
Telephone & Data Systems, Inc.		12,408		513,691

				635,551

UTILITIES — 7.5%
AGL Resources, Inc.		9,402		358,404
Alliant Energy Corp.		14,151		485,379
Aqua America, Inc.		15,541		354,179
Aquila, Inc. ^(a)		45,116		189,938
Black Hills Corp.		4,003		137,423
DPL, Inc.		14,630		392,084
Duquesne Light Holdings, Inc.		9,437		155,144
Energy East Corp.		17,823		426,504
Equitable Resources, Inc.		14,470		484,745
Great Plains Energy, Inc.		9,618		267,958
Hawaiian Electric Industries, Inc.		9,794		273,351
Idacorp, Inc.		5,141		176,285
MDU Resources Group, Inc.		14,503		530,955
National Fuel Gas Co.		10,203		358,533
Northeast Utilities		18,543		383,284
NSTAR		12,900		368,940
OGE Energy Corp.		10,939		383,193
ONEOK, Inc.		14,155		481,836
Pepco Holdings, Inc.		22,949		541,137
PNM Resources, Inc.		8,305		207,293
Puget Energy, Inc.		13,941		299,453
Questar Corp.		10,300		829,047
SCANA Corp.		13,836		533,793
Sierra Pacific Resources ^(a)		24,254		339,556
Vectren Corp.		9,198		250,646
Westar Energy, Inc.		10,508		221,193
WGL Holdings, Inc.		5,901		170,834
Wisconsin Energy Corp.		14,135		569,641
WPS Resources Corp.		4,831		239,618

				10,410,346


Total Common Stocks (Cost $110,321,456)				132,091,136


WARRANTS — 0.0%
Washington Mutual, Inc. ^(a)		1,500		330

Total Warrants
(Cost $238)				330


SHORT TERM INVESTMENTS ^(d)— 4.8%
MONEY MARKET FUNDS — 2.0%
Northern Institutional Diversified Assets Portfolio		2,759,938		2,759,938


	PRINCIPAL
	AMOUNT		VALUE

U.S. TREASURY BILLS — 2.8%
4.800%, 09/14/2006	$	4,000,000	$	3,961,560

Total Short Term Investments
(Cost $6,720,188)				6,721,498

TOTAL INVESTMENTS
(Cost $117,041,882) ^(b)— 99.9%				138,812,964
NORTHERN INSTITUTIONAL LIQUID ASSET PORTFOLIO ^(c)— 27.8%				38,606,448
LIABILITIES IN EXCESS OF OTHER ASSETS — (27.7)%				(38,508,909	)

TOTAL NET ASSETS — 100.0%			$	138,910,503

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		S&P MIDCAP 400 INDEX PORTFOLIO


^(a)		Non income producing security.

^(b)		For federal income tax purposes, cost is $117,808,236 and gross unrealized appreciation and depreciation of securities as of June 30, 2006 was $27,663,522 and ($6,658,794), respectively, with a net appreciation / (depreciation) of $21,004,728.

^(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 $38,916,942, $38,606,448, and $1,057,385, respectively.

^(d)		Securities and other assets with an aggregate value of $6,635,760 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of June 30, 2006:


			Unrealized
			Appreciation/
Type	Contracts		(Depreciation)

S&P MidCap 400 Index Mini (09/06)		6	$	29,844
S&P MidCap 400 Index (09/06)		16		343,672

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

Summit Mutual Funds, Inc. — Pinnacle Series


S&P MIDCAP 400 INDEX PORTFOLIO		FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)


ASSETS
Investments in securities, at value	$	138,812,964
Collateral for securities loaned, at fair value		38,606,448
Receivables:
Shares sold		91,559
Interest and dividends		141,816
Variation Margin		37,840
Prepaid expenses and other		2,065


		177,692,692

LIABILITIES
Payables:
Shares redeemed		52,699
Payable upon return of securities loaned		38,606,448
Advisory fees		51,569
Administration expenses		8,895
Directors’ fees		245
Custodian fees		9,605
Fund accounting fees		3,534
Professional fees		13,640
Royalty Fees		27,392
Transfer Agent Fees		2,273
Other accrued expenses		5,889


		38,782,189

NET ASSETS*
Paid-in capital		114,127,898
Accumulated net investments income / (loss)		622,772
Accumulated net realized gain / (loss) on investments and futures contracts		2,015,235
Net unrealized appreciation / (depreciation) on investments and futures contracts		22,144,598

	$	138,910,503


Investments at Cost		117,041,882
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS


			Shares
Share Class	Net Assets		Outstanding
Class I	$	138,910,503		2,117,552	$	65.60


* FEDERAL TAX DATA AS OF DECEMBER 31, 2005
Undistributed ordinary income	$	1,575,358
Undistributed long-term gains	$	4,406,728
Unrealized appreciation	$	20,094,039

STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 (Unaudited)


INVESTMENT INCOME
Interest	$	144,252
Dividends		1,042,034
Other income		24,660

		1,210,946

EXPENSES
Advisory fees		204,588
Administration expenses		68,196
Custodian fees and expenses		16,311
Fund accounting fees and expenses		11,661
Professional fees		12,133
Directors’ fees		7,761
Transfer agent fees		6,319
Royalty fee		16,290
Other expenses		9,374

		352,633

NET INVESTMENT INCOME / (LOSS)		858,313

REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments and options		2,954,984
Net realized gain / (loss) on investments and futures contracts		(180,953	)

		2,774,031

Net change in unrealized appreciation / (depreciation) on investments and futures contracts		1,291,758


NET REALIZED AND UNREALIZED GAIN / (LOSS)		4,065,789


NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS	$	4,924,102

TRANSACTIONS WITH AFFILIATES:


Percent of Current
Net Asset Value
Advisory	Administration			Expense
Fee	Fee			Limit⁽¹⁾			Waiver		Reimbursement

0.30%		0.10	%		0.30	%	$	—	$	—


⁽¹⁾		The Adviser has agreed to pay other expenses of the portfolio, other than the advisory fees, to the extent that such expenses exceed the stated percentage of their average net assets.

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

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL STATEMENTS		S&P MIDCAP 400 INDEX PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS


	For the
	Six Months
	Ended June 30,			Year Ended
	(Unaudited)			December 31,
	2006			2005

OPERATIONS
Net investment income / (loss)	$	858,313		$	1,010,790
Net realized gain / (loss) on investments and futures		2,774,031			4,946,482
Net change in unrealized appreciation / (depreciation) on investments		1,291,758			7,053,182

		4,924,102			13,010,454

DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(1,159,032	)		(557,878	)
Net realized gain on investments		(5,058,591	)		(2,313,654	)

		(6,217,623	)		(2,871,532	)

FUND SHARE TRANSACTIONS
Proceeds from shares sold		13,600,436			30,237,958
Reinvestment of distributions		6,217,623			2,871,532
Payments for shares redeemed		(6,985,947	)		(15,651,326	)


		12,832,112			17,458,164


NET INCREASE / (DECREASE) IN NET ASSETS		11,538,591			27,597,086
NET ASSETS
Beginning of period		127,371,912			99,774,826


End of period	$	138,910,503		$	127,371,912


ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	622,772		$	923,491


FUND SHARE TRANSACTIONS
Sold		201,371			490,894
Reinvestment of distributions		92,870			49,560
Redeemed		(104,098	)		(255,214	)


Net increase / (decrease) from fund share transactions		190,143			285,240

TOTAL COST OF PURCHASES OF:
Common Stocks	$	13,395,590		$	35,027,711


	$	13,395,590		$	35,027,711

TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	9,233,139		$	20,514,738


	$	9,233,139		$	20,514,738

*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	1,810,900		$	973,292
Long-term capital gains		4,406,723			1,898,240

	$	6,217,623		$	2,871,532

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

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 June 30, 2006, the Summit Balanced Index Portfolio’s total return was 1.57% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 1.35% 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 2.71% and (0.72)%, respectively). The difference of 0.22% 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; broker’s commissions or other trading costs; holding security positions in amounts that are different than the weightings in the Index and holding only a sample of the Bond 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 an 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 Balanced Index. The Portfolio achieved this level of correlation for the period presented.

Fund Data


Managers:		Gary R. Rodmaker
		Nick J. Kotsonis
		Kevin P. Aug
Inception Date:		May 3, 1999
Total Net Assets:		$28.10 Million
Number of Equity Holdings:		500
Median Cap Size:		$11,902 Million
Average Price-to-book Ratio:		2.70 x
Dividend Yield:		0.02%
Number of Fixed Income Holdings:		40
Average Duration		3.74 years
Average Maturity		10.1 years
Average Credit Quality		AA+/Aa1
Current Yield		5.13%

Top 10 Equity Holdings


	(% of net assets)
Exxon Mobil Corp.		2.03	%
General Electric Co.		1.84	%
Citigroup, Inc.		1.31	%
Bank of America Corp.		1.19	%
Microsoft Corp.		1.11	%
Procter & Gamble Co.		0.99	%
Johnson & Johnson		0.95	%
Pfizer, Inc.		0.93	%
American International Group, Inc.		0.81	%
Altria Group, Inc.		0.81	%

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL HIGHLIGHTS		BALANCED INDEX PORTFOLIO

FINANCIAL HIGHLIGHTS


	For the Six Months
	Ended June 30,
	(Unaudited)			Year Ended December 31,
	2006			2005			2004			2003			2002			2001

Net asset value, beginning of period	$	45.74		$	45.55		$	43.05		$	37.50		$	43.85		$	48.05

Investment Activities:
Net investment income / (loss)		0.54			1.07			0.95	⁽²⁾		0.95			1.13			1.10
Net realized and unrealized gains / (losses)		0.18			0.28			2.27			5.57			(6.01	)		(3.15	)

Total from Investment Activities		0.72			1.35			3.22			6.52			(4.88	)		(2.05	)


DISTRIBUTIONS:
Net investment income		(0.60	)		(1.16	)		(0.72	)		(0.97	)		(1.47	)		(0.60	)
Net realized gains		—			—			—			—			—			(1.55	)

Total Distributions		(0.60	)		(1.16	)		(0.72	)		(0.97	)		(1.47	)		(2.15	)

Net asset value, end of period	$	45.86		$	45.74		$	45.55		$	43.05		$	37.50		$	43.85

Total return		1.57	%		3.04	%		7.59	%		17.70	%		-11.27	%		-4.38	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net⁽¹⁾		0.60	%⁽³⁾		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of expenses to average net assets – gross		0.68	%⁽³⁾		0.70	%		0.71	%		1.01	%		1.10	%		0.81	%
Ratio of net investment income / (loss) to average net assets		2.30	%⁽³⁾		2.25	%		2.23	%		2.31	%		2.78	%		2.47	%
Portfolio turnover rate		5.33	%		3.85	%		21.20	%		25.45	%		15.34	%		35.84	%
Net assets, end of period (000’s)	$	28,101		$	29,316		$	33,356		$	11,667		$	10,638		$	13,004


⁽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.

⁽³⁾		Annualized.

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


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

JUNE 30, 2006 (Unaudited)


	SHARES		VALUE
COMMON STOCKS — 62.2%
CONSUMER DISCRETIONARY — 6.6%
Amazon.com, Inc.^(a)		460	$	17,793
Apollo Group, Inc.^(a)		245		12,659
Autonation, Inc.^(a)		269		5,767
Autozone, Inc.^(a)		93		8,203
Bed Bath & Beyond, Inc.^(a)		441		14,628
Best Buy Co., Inc.		604		33,123
Big Lots, Inc.^(a)		190		3,245
The Black & Decker Corp.		135		11,402
Brunswick Corp.		163		5,420
Carnival Corp.		644		26,881
CBS Corporation		1,181		31,946
Centex Corp.		215		10,814
Circuit City Stores, Inc.		275		7,485
Clear Channel Communications, Inc.		810		25,069
Coach, Inc.^(a)		567		16,953
Comcast Corp. — Class A^(a)		3,274		107,191
Cooper Tire & Rubber Co.		102		1,136
D.R. Horton, Inc.		406		9,671
Darden Restaurants, Inc.		225		8,865
Dillard’s, Inc. — Class A		108		3,440
Dollar General Corp.		479		6,696
Dow Jones & Co., Inc.		98		3,431
The E.W. Scripps Company		130		5,608
Eastman Kodak Co.		429		10,202
eBay, Inc.^(a)		1,657		48,534
Family Dollar Stores, Inc.		232		5,668
Federated Department Stores, Inc.		790		28,914
Ford Motor Co.		2,762		19,141
Fortune Brands, Inc.		244		17,326
Gannett Co., Inc.		364		20,359
The Gap, Inc.		865		15,051
General Motors Corp.		843		25,113
Genuine Parts Co.		260		10,832
The Goodyear Tire & Rubber Co.^(a)		263		2,919
H&R Block, Inc.		484		11,548
Harley-Davidson, Inc.		410		22,505
Harman International Industries, Inc.		100		8,537
Harrah’s Entertainment, Inc.		274		19,503
Hasbro, Inc.		267		4,835
Hilton Hotels Corp.		489		13,829
The Home Depot, Inc.		3,191		114,206
International Game Technology		509		19,311
Interpublic Group of Companies, Inc.^(a)		631		5,269
J.C. Penney Co., Inc. (Holding Co.)		374		25,249
Johnson Controls, Inc.		288		23,679
Jones Apparel Group, Inc.		198		6,294
KB Home		130		5,961
Kohl’s Corp.^(a)		514		30,388
Leggett & Platt, Inc.		282		7,044
Lennar Corp.		220		9,761
Limited Brands, Inc.		521		13,332
Liz Claiborne, Inc.		179		6,634
Lowe’s Companies, Inc.		1,163		70,559
Marriott International, Inc. — Class A		512		19,517
Mattel, Inc.		603		9,956
McDonald’s Corp.		1,864		62,630
The McGraw-Hill Companies, Inc.		558		28,028
Meredith Corp.		70		3,468
New York Times Co. — Class A		243		5,963
Newell Rubbermaid, Inc.		411		10,616
News Corp. — Class A		3,654		70,084
Nike, Inc. — Class B		285		23,085
Nordstrom, Inc.		331		12,082
Office Depot, Inc.^(a)		472		17,936
OfficeMax, Inc.		118		4,809
Omnicom Group		272		24,232
Pulte Homes, Inc.		320		9,213
RadioShack Corp.		225		3,150
Sears Holdings Corp.^(a)		171		26,478
The Sherwin-Williams Co.		190		9,021
Snap-on, Inc.		97		3,921
The Stanley Works		121		5,714
Staples, Inc.		1,096		26,655
Starbucks Corp.^(a)		1,146		43,273
Starwood Hotels & Resorts Worldwide, Inc.		325		19,611
Target Corp.		1,319		64,460
Tiffany & Co.		238		7,859
Time Warner, Inc.		6,485		112,191
The TJX Companies, Inc.		695		15,888
Tribune Co.		396		12,842
Univision Communications, Inc.^(a)		344		11,524
VF Corp.		149		10,120
Viacom, Inc. — Class B^(a)		1,181		42,327
The Walt Disney Co.		3,272		98,160
Wendy’s International, Inc.		193		11,250
Whirlpool Corp.		128		10,579
Yum! Brands, Inc.		426		21,415

				1,857,986


CONSUMER STAPLES — 6.0%
Alberto-Culver Co.		126		6,139
Altria Group, Inc.		3,094		227,192
Anheuser-Busch Companies, Inc.		1,158		52,793
Archer-Daniels-Midland Co.		971		40,083
Avon Products, Inc.		702		21,762
Brown-Forman Corp. — Class B		139		9,932
Campbell Soup Co.		276		10,242
Clorox Co.		254		15,486
The Coca-Cola Co.		3,095		133,147
Coca-Cola Enterprises, Inc.		450		9,166
Colgate-Palmolive Co.		775		46,422
ConAgra Foods, Inc.		772		17,069
Constellation Brands, Inc. — Class A^(a)		293		7,325
Costco Wholesale Corp.		715		40,848
CVS Corp.		1,213		37,239
Dean Foods Co.^(a)		200		7,438
The Estee Lauder Companies Inc.		180		6,961
General Mills, Inc.		546		28,206
The Hershey Co.		274		15,089
HJ Heinz Co.		509		20,981
Kellogg Co.		382		18,500
Kimberly-Clark Corp.		710		43,807
The Kroger Co.		1,080		23,609
McCormick & Co., Inc.		224		7,515
Molson Coors Brewing Co. — Class B		96		6,516
Pepsi Bottling Group, Inc.		232		7,459
PepsiCo, Inc.		2,490		149,500

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


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


	SHARES		VALUE
CONSUMER STAPLES — 6.0% (Continued)
Procter & Gamble Co.		5,020	$	279,112
Reynolds American, Inc.		143		16,488
Safeway, Inc.		669		17,394
Sara Lee Corp.		1,171		18,759
SUPERVALU, Inc.		327		10,039
Sysco Corp.		944		28,849
Tyson Foods, Inc. — Class A		375		5,573
UST, Inc.		245		11,072
Walgreen Co.		1,525		68,381
Wal-Mart Stores, Inc.		3,724		179,385
Whole Foods Market, Inc.		200		12,928
Wm. Wrigley Jr. Co.		335		15,196

				1,673,602


ENERGY — 6.3%
Anadarko Petroleum Corp.		706		33,669
Apache Corp.		491		33,511
Baker Hughes, Inc.		508		41,580
BJ Services Co.		481		17,922
Chesapeake Energy Corp.		530		16,032
Chevron Corp.		3,360		208,522
ConocoPhillips		2,486		162,908
Devon Energy Corp.		676		40,837
El Paso Corp.		984		14,760
EOG Resources, Inc.		359		24,893
Exxon Mobil Corp.		9,290		569,942
Halliburton Co.		758		56,251
Hess Corp.		402		21,246
Kerr-McGee Corp.		386		26,769
Kinder Morgan, Inc.		160		15,982
Marathon Oil Corp.		546		45,482
Murphy Oil Corp.		274		15,306
Nabors Industries Ltd. ^(a)		526		17,774
National-Oilwell Varco, Inc. ^(a)		259		16,400
Noble Corp.		229		17,042
Occidental Petroleum Corp.		596		61,120
Rowan Companies, Inc.		182		6,477
Schlumberger Ltd.		1,756		114,333
Sunoco, Inc.		228		15,798
Transocean, Inc. ^(a)		491		39,437
Valero Energy Corp.		912		60,666
Weatherford International Ltd. ^(a)		462		22,924
Williams Companies, Inc.		854		19,949
XTO Energy, Inc.		539		23,862

				1,761,394


FINANCIALS — 13.3%
ACE Ltd.		482		24,384
AFLAC, Inc.		748		34,670
The Allstate Corp.		979		53,581
AMBAC Financial Group, Inc.		179		14,517
American Express Co.		1,851		98,510
American International Group, Inc.		3,868		228,405
Ameriprise Financial, Inc.		371		16,573
AmSouth Bancorp		523		13,833
AON Corp.		475		16,540
Apartment Investment & Management Co.		160		6,952
Archstone-Smith Trust		316		16,075
Bank of America Corp.		6,948		334,199
The Bank of New York Co., Inc.		1,161		37,384
BB&T Corp.		817		33,979
The Bear Stearns Companies, Inc.		188		26,335
Boston Properties, Inc.		140		12,656
Capital One Financial Corp.		431		36,829
The Charles Schwab Corp.		1,552		24,801
Chubb Corp.		592		29,541
Cincinnati Financial Corp.		261		12,270
CIT Group, Inc.		301		15,739
Citigroup, Inc.		7,606		366,913
Comerica, Inc.		250		12,998
Commerce Bancorp, Inc.		280		9,988
Compass Bancshares, Inc.		208		11,565
Countrywide Financial Corp.		887		33,777
E*Trade Financial Corp. ^(a)		553		12,619
Equity Office Properties Trust		612		22,344
Equity Residential		429		19,189
Fannie Mae		1,443		69,408
Federated Investors, Inc.		142		4,473
Fifth Third Bancorp		829		30,632
First Horizon National Corp.		209		8,402
Franklin Resources, Inc.		248		21,529
Freddie Mac		1,030		58,720
Genworth Financial, Inc.		570		19,859
Golden West Financial Corp.		381		28,270
The Goldman Sachs Group, Inc.		694		104,398
Hartford Financial Services Group, Inc.		447		37,816
Huntington Bancshares, Inc.		345		8,135
J.P. Morgan Chase & Co.		5,238		219,996
Janus Capital Group, Inc.		333		5,961
KeyCorp		611		21,801
Kimco Realty Corp.		300		10,947
Legg Mason, Inc.		200		19,904
Lehman Brothers Holdings, Inc.		812		52,902
Lincoln National Corp.		459		25,906
Loews Corp.		681		24,141
M&T Bank Corp.		135		15,919
Marsh & McLennan Companies, Inc.		799		21,485
Marshall & Ilsley Corp.		309		14,134
MBIA, Inc.		224		13,115
Mellon Financial Corp.		624		21,484
Merrill Lynch & Co., Inc.		1,382		96,132
Metlife, Inc.		1,128		57,765
MGIC Investment Corp.		156		10,140
Moody’s Corp.		377		20,531
Morgan Stanley		1,619		102,337
National City Corp.		848		30,689
North Fork Bancorporation, Inc.		714		21,541
Northern Trust Corp.		277		15,318
Plum Creek Timber Co., Inc.		275		9,763
PNC Financial Services Group		434		30,454
Principal Financial Group, Inc.		417		23,206
The Progressive Corp.		1,180		30,338
Prologis		369		19,232
Prudential Financial, Inc.		765		59,441
Public Storage, Inc.		138		10,474
Regions Financial Corp.		687		22,753
Safeco Corp.		209		11,777
Simon Property Group, Inc.		273		22,643
SLM Corp.		623		32,969

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


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


	SHARES		VALUE
FINANCIALS - 13.3% (Continued)
Sovereign Bancorp, Inc.		567	$	11,516
The St. Paul Travelers Companies, Inc.		1,007		44,892
State Street Corp.		494		28,696
SunTrust Banks, Inc.		541		41,257
Synovus Financial Corp.		466		12,479
T. Rowe Price Group, Inc.		434		16,410
Torchmark Corp.		174		10,565
UnumProvident Corp.		445		8,068
US Bancorp		2,726		84,179
Vornado Realty Trust		197		19,217
Wachovia Corp.		2,459		132,983
Washington Mutual, Inc.		1,488		67,823
Wells Fargo & Co.		2,517		168,840
XL Capital Ltd. — Class A		235		14,406
Zions Bancorporation		151		11,769

				3,737,106


HEALTH CARE - 7.6%
Abbott Laboratories		2,317		101,044
Aetna, Inc.		866		34,579
Allergan, Inc.		219		23,490
AmerisourceBergen Corp.		348		14,588
Amgen, Inc.^(a)		1,840		120,023
Applera Corp. — Applied Biosystems Group		292		9,446
Barr Pharmaceuticals, Inc.^(a)		160		7,630
Bausch & Lomb, Inc.		90		4,414
Baxter International, Inc.		929		34,150
Becton, Dickinson & Co.		373		22,802
Biogen Idec, Inc.^(a)		504		23,350
Biomet, Inc.		372		11,640
Boston Scientific Corp.^(a)		1,821		30,666
Bristol-Myers Squibb Co.		2,917		75,434
C.R. Bard, Inc.		176		12,894
Cardinal Health, Inc.		637		40,978
Caremark Rx, Inc.^(a)		671		33,463
CIGNA Corp.		215		21,180
Coventry Health Care, Inc.^(a)		270		14,834
Eli Lilly & Co.		1,691		93,462
Express Scripts, Inc.^(a)		249		17,863
Fisher Scientific International, Inc.^(a)		204		14,902
Forest Laboratories, Inc.^(a)		507		19,616
Genzyme Corp.^(a)		383		23,382
Gilead Sciences, Inc.^(a)		680		40,229
HCA, Inc.		674		29,083
Health Management Associates, Inc. — Class A		369		7,273
Hospira, Inc.^(a)		267		11,465
Humana, Inc.^(a)		272		14,606
IMS Health, Inc.		337		9,048
Johnson & Johnson		4,434		265,685
King Pharmaceuticals, Inc.^(a)		361		6,137
Laboratory Corp. Of America Holdings^(a)		226		14,064
Manor Care, Inc.		132		6,193
McKesson Corp.		460		21,749
Medco Health Solutions, Inc.^(a)		454		26,005
MedImmune, Inc.^(a)		368		9,973
Medtronic, Inc.		1,806		84,738
Merck & Co., Inc.		3,274		119,272
Millipore Corp.^(a)		86		5,417
Mylan Laboratories, Inc.		327		6,540
Patterson Companies, Inc.^(a)		220		7,685
PerkinElmer, Inc.		218		4,556
Pfizer, Inc.		11,086		260,188
Quest Diagnostics, Inc.		278		16,658
Schering-Plough Corp.		2,202		41,904
St. Jude Medical, Inc.^(a)		544		17,636
Stryker Corp.		434		18,276
Tenet Healthcare Corp.^(a)		700		4,886
Thermo Electron Corp.^(a)		270		9,785
UnitedHealth Group, Inc.		2,048		91,709
Waters Corp.^(a)		192		8,525
Watson Pharmaceuticals, Inc.^(a)		174		4,051
Wellpoint, Inc.^(a)		972		70,732
Wyeth		2,000		88,820
Zimmer Holdings, Inc.^(a)		369		20,930

				2,149,648


INDUSTRIALS - 7.3%
3M Co.		1,141		92,159
Allied Waste Industries, Inc.^(a)		326		3,703
American Power Conversion Corp.		256		4,989
American Standard Companies, Inc.		274		11,856
Avery Dennison Corp.		185		10,741
Boeing Co.		1,224		100,258
Burlington Northern Santa Fe Corp.		557		44,142
Caterpillar, Inc.		1,009		75,150
Cendant Corp.		1,561		25,429
Cintas Corp.		231		9,184
Cooper Industries Ltd. — Class A		155		14,403
CSX Corp.		324		22,822
Cummins, Inc.		78		9,535
Danaher Corp.		355		22,834
Deere & Co.		360		30,056
Dover Corp.		302		14,928
Eaton Corp.		246		18,548
Emerson Electric Co.		616		51,627
Equifax, Inc.		218		7,486
FedEx Corp.		452		52,821
Fluor Corp.		145		13,475
General Dynamics Corp.		600		39,276
General Electric Co.		15,664		516,285
Goodrich Corp.		203		8,179
Honeywell International, Inc.		1,276		51,423
Illinois Tool Works, Inc.		624		29,640
Ingersoll-Rand Company Ltd. — Class A		504		21,561
ITT Industries, Inc.		310		15,345
L-3 Communications Holdings, Inc.		198		14,933
Lockheed Martin Corp.		543		38,955
Masco Corp.		642		19,029
Monster Worldwide, Inc.^(a)		204		8,703
Navistar International Corp.^(a)		103		2,535
Norfolk Southern Corp.		603		32,092
Northrop Grumman Corp.		533		34,144
Paccar, Inc.		256		21,089
Pall Corp.		208		5,824
Parker Hannifin Corp.		200		15,520
Pitney Bowes, Inc.		342		14,125
Raytheon Co.		673		29,996
Robert Half International, Inc.		253		10,626

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


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


	SHARES		VALUE
INDUSTRIALS — 7.3% (Continued)
Rockwell Automation, Inc.		271	$	19,515
Rockwell Collins, Inc.		264		14,750
RR Donnelley & Sons Co.		321		10,256
Ryder System, Inc.		107		6,252
Southwest Airlines Co.		1,034		16,927
Textron, Inc.		224		20,648
Tyco International Ltd.		3,018		82,995
Union Pacific Corp.		394		36,626
United Parcel Service, Inc. — Class B		1,651		135,927
United Technologies Corp.		1,528		96,906
W.W. Grainger, Inc.		127		9,554
Waste Management, Inc.		839		30,103

				2,045,885


INFORMATION TECHNOLOGY — 9.0%
ADC Telecommunications, Inc.^(a)		195		3,288
Adobe Systems, Inc.^(a)		893		27,111
Advanced Micro Devices, Inc.^(a)		723		17,656
Affiliated Computer Services, Inc. — Class A^(a)		210		10,838
Agilent Technologies, Inc.^(a)		627		19,788
Altera Corp.^(a)		556		9,758
Analog Devices, Inc.		556		17,870
Andrew Corp.^(a)		272		2,410
Apple Computer, Inc.^(a)		1,238		70,715
Applied Materials, Inc.		2,419		39,381
Autodesk, Inc.^(a)		341		11,751
Automatic Data Processing, Inc.		865		39,228
Avaya, Inc.^(a)		633		7,229
BMC Software, Inc.^(a)		326		7,791
Broadcom Corp. — Class A^(a)		634		19,052
CA, Inc.		691		14,200
Ciena Corp.^(a)		865		4,161
Cisco Systems, Inc.^(a)		9,316		181,941
Citrix Systems, Inc.^(a)		255		10,236
Computer Sciences Corp.^(a)		276		13,369
Compuware Corp.^(a)		580		3,886
Comverse Technology, Inc.^(a)		301		5,951
Convergys Corp.^(a)		234		4,563
Corning, Inc.^(a)		2,296		55,540
Dell, Inc.^(a)		3,496		85,337
Electronic Arts, Inc.^(a)		453		19,497
Electronic Data Systems Corp.		774		18,622
EMC Corp.^(a)		3,594		39,426
First Data Corp.		1,151		51,841
Fiserv, Inc.^(a)		281		12,746
Freescale Semiconductor, Inc. — Class B^(a)		604		17,758
Gateway, Inc.^(a)		395		751
Google, Inc.^(a)		300		125,799
Hewlett-Packard Co.		4,274		135,400
Intel Corp.		8,972		170,019
International Business Machines Corp.		2,379		182,755
Intuit, Inc.^(a)		271		16,366
Jabil Circuit, Inc.		257		6,579
JDS Uniphase Corp.^(a)		2,468		6,244
Juniper Networks, Inc.^(a)		840		13,432
KLA-Tencor Corp.		295		12,263
Lexmark International, Inc. — Class A^(a)		199		11,110
Linear Technology Corp.		458		15,338
LSI Logic Corp.^(a)		584		5,227
Lucent Technologies, Inc.^(a)		6,626		16,035
Maxim Integrated Products, Inc.		489		15,702
Micron Technology, Inc.^(a)		919		13,840
Microsoft Corp.		13,400		312,220
Molex, Inc.		242		8,124
Motorola, Inc.		3,681		74,172
National Semiconductor Corp.		512		12,211
NCR Corp.^(a)		278		10,186
Network Appliance, Inc.^(a)		549		19,380
Novell, Inc.^(a)		570		3,779
Novellus Systems, Inc.^(a)		232		5,730
NVIDIA Corp.^(a)		504		10,730
Oracle Corp.^(a)		5,681		82,318
Parametric Technology Corp.^(a)		162		2,059
Paychex, Inc.		497		19,373
PMC — Sierra, Inc.^(a)		272		2,557
QLogic Corp.^(a)		304		5,241
QUALCOMM, Inc.		2,639		105,745
Sabre Holdings Corp. — Class A		219		4,818
SanDisk Corp.^(a)		280		14,274
Sanmina-SCI Corporation^(a)		786		3,616
Solectron Corp.^(a)		1,454		4,973
Sun Microsystems, Inc.^(a)		5,083		21,094
Symantec Corp.^(a)		1,647		25,594
Symbol Technologies, Inc.		363		3,917
Tektronix, Inc.		141		4,148
Tellabs, Inc.^(a)		667		8,878
Teradyne, Inc.^(a)		294		4,095
Texas Instruments, Inc.		2,420		73,302
Unisys Corp.^(a)		509		3,197
VeriSign, Inc.^(a)		380		8,805
Xerox Corp.^(a)		1,432		19,919
Xilinx, Inc.		522		11,823
Yahoo!, Inc.^(a)		1,870		61,710

				2,537,788


MATERIALS - 2.0%
Air Products & Chemicals, Inc.		331		21,158
Alcoa, Inc.		1,301		42,100
Allegheny Technologies, Inc.		141		9,763
Ashland, Inc.		124		8,271
Ball Corp.		182		6,741
Bemis Co.		179		5,481
Consol Energy, Inc.		280		13,082
The Dow Chemical Co.		1,439		56,164
Eastman Chemical Co.		136		7,344
Ecolab, Inc.		275		11,159
EI Du Pont de Nemours & Co.		1,384		57,574
Freeport-McMoRan Copper & Gold, Inc. — Class B		265		14,684
Hercules, Inc.^(a)		189		2,884
International Flavors & Fragrances, Inc.		137		4,828
International Paper Co.		732		23,644
Louisiana-Pacific Corp.		185		4,051
MeadWestvaco Corp.		275		7,681
Monsanto Co.		401		33,760
Newmont Mining Corp.		666		35,251
Nucor Corp.		522		28,319
Pactiv Corp.^(a)		250		6,188
Phelps Dodge Corp.		324		26,620
PPG Industries, Inc.		254		16,764
Praxair, Inc.		482		26,028

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


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


	SHARES		VALUE
MATERIALS — 2.0% (Continued)
Rohm & Haas Co.		243	$	12,179
Sealed Air Corp.		139		7,239
Sigma-Aldrich Corp.		113		8,208
Temple-Inland, Inc.		189		8,102
United States Steel Corp.		191		13,393
Vulcan Materials Co.		171		13,338
Weyerhaeuser Co.		366		22,784

				554,782


TELECOMMUNICATION SERVICES — 2.0%
Alltel Corp.		570		36,383
AT&T, Inc.		5,859		163,407
BellSouth Corp.		2,732		98,898
CenturyTel, Inc.		217		8,062
Citizens Communications Co.		512		6,682
Embarq Corp.^(a)		218		8,936
Qwest Communications International, Inc.^(a)		2,279		18,437
Sprint Nextel Corp.		4,372		87,396
Verizon Communications, Inc.		4,453		149,131

				577,332


UTILITIES — 2.1%
The AES Corp.^(a)		974		17,970
Allegheny Energy, Inc.^(a)		243		9,008
Ameren Corp.		304		15,352
American Electric Power Co., Inc.		586		20,071
Centerpoint Energy, Inc.		462		5,775
CMS Energy Corp.^(a)		327		4,231
Consolidated Edison, Inc.		365		16,221
Constellation Energy Group, Inc.		266		14,502
Dominion Resources, Inc.		508		37,993
DTE Energy Co.		266		10,837
Duke Energy Corporation		1,845		54,188
Dynegy, Inc. — Class A^(a)		428		2,341
Edison International		486		18,954
Entergy Corp.		310		21,933
Exelon Corp.		1,000		56,830
FirstEnergy Corp.		492		26,671
FPL Group, Inc.		588		24,332
KeySpan Corp.		260		10,504
Nicor, Inc.		74		3,071
NiSource, Inc.		407		8,889
Peoples Energy Corp.		64		2,298
PG&E Corp.		557		21,879
Pinnacle West Capital Corp.		165		6,585
PPL Corp.		566		18,282
Progress Energy, Inc.		375		16,076
Public Service Enterprise Group, Inc.		357		23,605
Sempra Energy		382		17,373
The Southern Co.		1,115		35,736
TECO Energy, Inc.		310		4,631
TXU Corp.		716		42,810
Xcel Energy, Inc.		601		11,527

				580,475


Total Common Stocks (Cost $14,941,185)				17,475,998


	PRINCIPAL
	AMOUNT		VALUE
CORPORATE BONDS — 8.6%
CONSUMER STAPLES — 0.4%
Campbell Soup Co.
5.875%, 10/01/2008	$	100,000	$	100,467


ENERGY — 1.8%
Burlington Resources Finance Co.
6.500%, 12/01/2011		150,000		155,180
Colonial Pipeline Co.
7.750%, 11/01/2010^(b)		125,000		134,625
Conoco Funding Co.
6.350%, 10/15/2011		50,000		51,441
Public Service North Carolina, Inc.
6.625%, 02/15/2011		150,000		155,236

Total Energy				496,482


FINANCIALS — 1.5%
Key Bank National Association
5.000%, 07/17/2007		100,000		99,013
TIAA Global Markets, Inc.
4.125%, 11/15/2007^(b)		150,000		146,624
Union Planters Corp.
4.375%, 12/01/2010		190,000		180,278

Total Financials				425,915


HEALTH CARE — 0.5%
Amgen, Inc.
6.500%, 12/01/2007		150,000		151,600


INDUSTRIALS — 1.8%
Honeywell International, Inc.
7.500%, 03/01/2010		125,000		132,453
Masco Corp.
5.875%, 07/15/2012		125,000		122,852
United Technologies Corp.
4.375%, 05/01/2010		250,000		239,360

Total Industrials				494,665


MATERIALS — 2.6%
Champion International Corp.
7.200%, 11/01/2026		450,000		463,290
Weyerhaeuser Co.
7.500%, 03/01/2013		250,000		262,699

Total Materials				725,989


Total Corporate Bonds (Cost $2,507,025)				2,395,118

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


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


	PRINCIPAL
	AMOUNT		VALUE
MORTGAGE BACKED SECURITIES — 10.5%
Fannie Mae Pool
Pool #500823, 7.000%, 07/01/2029	$	441,368	$	452,500
Pool #653650, 6.500%, 08/01/2032		91,841		92,112
Pool #722267, 5.500%, 07/01/2033		263,951		254,633
Pool #732114, 6.000%, 08/01/2033		249,902		246,731
Pool #357457, 5.500%, 11/01/2033		522,707		504,255
Freddie Mac (Gold) Pool
Pool #E9-6460, 5.000%, 05/01/2018		658,730		635,516
Pool #E9-9160, 4.500%, 09/01/2018		136,217		128,840
Ginnie Mae Pool
Pool #003583M, 5.500%, 07/20/2034		658,369		636,028


Total Mortgage Backed Securities (Cost $3,110,279)				2,950,615


U.S. GOVERNMENT AGENCY ISSUES — 6.1%
Federal Home Loan Mortgage Corp.
3.500%, 09/15/2007		1,750,000		1,710,629


Total U.S. Government Agency Issues (Cost $1,769,593)				1,710,629


U.S. TREASURY OBLIGATIONS ^(e)— 10.5%
U.S. Treasury Bonds
6.250%, 08/15/2023		250,000		275,723
5.250%, 11/15/2028		200,000		199,062
6.125%, 08/15/2029		195,000		216,816
U.S. Treasury Notes
7.000%, 07/15/2006		250,000		250,098
6.125%, 08/15/2007		100,000		100,902
4.000%, 08/31/2007		200,000		197,180
5.500%, 02/15/2008		200,000		201,047
4.625%, 02/29/2008		200,000		198,180
4.750%, 11/15/2008		200,000		198,211
3.375%, 12/15/2008		84,000		80,614
4.500%, 02/15/2009		200,000		196,836
6.000%, 08/15/2009		50,000		51,248
5.750%, 08/15/2010		180,000		184,422
4.250%, 01/15/2011		300,000		289,676
4.375%, 08/15/2012		100,000		96,195
3.625%, 05/15/2013		234,000		214,046


Total U.S. Treasury Obligations (Cost $3,038,879)				2,950,256


	SHARES		VALUE
UNIT INVESTMENT TRUSTS — 0.6%
iShares Lehman Aggregate Bond Fund		1,800	$	175,392


Total Unit Investment Trusts (Cost $178,876)				175,392


SHORT TERM INVESTMENTS ^(e)— 1.4%
MONEY MARKET FUNDS — 0.4%
Northern Institutional Diversified Assets Portfolio		109,417		109,417


	PRINCIPAL
	AMOUNT		VALUE
U.S. TREASURY BILLS — 1.0%
4.800%, 09/14/2006	$	300,000	$	297,117

Total Short Term Investments (Cost $406,436)				406,534

TOTAL INVESTMENTS (Cost $25,952,273) ^(c)— 99.9%				28,064,542
NORTHERN INSTITUTIONAL LIQUID ASSETS PORTFOLIO ^(d)— 12.9%				3,617,101
LIABILITIES IN EXCESS OF OTHER ASSETS — (12.8)%				(3,581,087	)

TOTAL NET ASSETS — 100.0%			$	28,100,556


^(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 $25,985,938 and gross unrealized appreciation and depreciation of securities as of June 30, 2006 was $3,567,865 and ($1,489,261), respectively, with a net appreciation / (depreciation) of $2,078,604.

^(d)		This security was purchased with cash collateral held from securities lending. The market value of the securities on loan, the collateral purchased with cash, and the noncash collateral accepted is $4,066,054, $3,617,101, and $538,769, respectively.

^(e)		Securities and other assets with an aggregate value of $319,850 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of June 30, 2006:


		Unrealized
		Appreciation/
Type	Contracts	(Depreciation)

S&P 500 Index (09/06)	1	$9,717

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



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

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)


ASSETS
Investments in securities, at value	$	28,064,542
Collateral for securities loaned, at fair value		3,617,101
Receivables:
Shares sold		101
Securities sold		2,314
Interest and dividends		135,507
Prepaid expenses and other		667

		31,820,232

LIABILITIES
Payables:
Shares redeemed		72,002
Payable upon return of securities loaned		3,617,101
Advisory fees		1,588
Administration expenses		1,487
Directors’fees		34
Custodian fees		4,149
Fund accounting fees		5,873
Professional fees		9,347
Variation margin		800
Royalty fees		3,193
Other accrued expenses		4,102

		3,719,676

NET ASSETS*
Paid-in capital		27,567,703
Accumulated net investments income / (loss)		62,401
Accumulated net realized gain / (loss) on investments and futures contracts		(1,651,534	)
Net unrealized appreciation / (depreciation) on investments and futures contracts		2,121,986

	$	28,100,556

Investments at cost		25,952,273
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS


			Shares
Share Class	Net Assets		Outstanding
Class I	$	28,100,556		612,783	$	45.86


* FEDERAL TAX DATA AS OF DECEMBER 31, 2005
Undistributed ordinary income	$	105,467
Unrealized appreciation	$	1,895,381


Capital Loss Carryforward Expiring December 31:

2010	2011		2012			2013
$(350,093)	$	—	$	(629,782	)	$	(576,478	)

STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 (Unaudited)


INVESTMENT INCOME
Interest	$	245,538
Dividends		170,688
Other income		1,953

		418,179

EXPENSES
Advisory fees		43,291
Administration expenses		14,430
Custodian fees and expenses		6,783
Fund accounting fees and expenses		14,015
Professional fees		7,870
Directors’fees		1,619
Transfer agent fees		5,236
Royalty fee		1,082
Other expenses		3,153

		97,479
Reimbursements and waivers		(10,897	)

		86,582

NET INVESTMENT INCOME / (LOSS)		331,597


REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments and options		(107,436	)
Net realized gain / (loss) on futures contracts		11,255

		(96,181	)

Net change in unrealized appreciation / (depreciation) on investments and futures contracts		227,604

NET REALIZED AND UNREALIZED GAIN / (LOSS)		131,423

NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS	$	463,020



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

STATEMENTS OF CHANGES IN NET ASSETS


	For the
	Six Months
	Ended June 30,			Year Ended
	(Unaudited)			December 31,
	2006			2005

OPERATIONS
Net investment income / (loss)	$	331,597		$	694,842
Net realized gain / (loss) on investments and futures		(96,181	)		(508,983	)
Net change in unrealized appreciation / (depreciation) on investments		227,604			701,835

		463,020			887,694

DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(374,663	)		(793,393	)

		(374,663	)		(793,393	)

FUND SHARE TRANSACTIONS
Proceeds from shares sold		866,833			1,895,604
Reinvestment of distributions		374,663			793,393
Payments for shares redeemed		(2,545,116	)		(6,823,962	)

		(1,303,620	)		(4,134,965	)

NET INCREASE / (DECREASE) IN NET ASSETS		(1,215,263	)		(4,040,664	)
NET ASSETS
Beginning of period		29,315,819			33,356,483

End of period	$	28,100,556		$	29,315,819

ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	62,401		$	105,467


FUND SHARE TRANSACTIONS
Sold		18,669			42,136
Reinvestment of distributions		8,115			17,700
Redeemed		(54,920	)		(151,195	)

Net increase / (decrease) from fund share transactions		(28,136	)		(91,359	)

TOTAL COST OF PURCHASES OF:
Common Stocks	$	785,124		$	841,020
U.S. Government Securities		889,531			—
Corporate Bonds		423,178			301,187

	$	2,097,833		$	1,142,207

TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	413,449		$	3,825,429
U.S. Government Securities		331,339			1,864,874
Corporate Bonds		739,050			342,899

	$	1,483,838		$	6,033,202

*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	374,663		$	793,393

	$	374,663		$	793,393

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

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 June 30, 2006, the Summit Nasdaq-100 Index Portfolio’s total return was (4.32)% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a (4.03)% total return for the Nasdaq-100 Index. The difference of 0.29% 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; broker’s 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.

Fund Data


Managers:		Gary R. Rodmaker Nick J. Kotsonis Kevin P. Aug
Inception Date:		April 27, 2000
Total Net Assets:		$24.21 Million
No. of Holdings:		100
Median Cap Size:		$8,846 Million
Average Price-to-book Ratio:		4.02 x
Dividend Yield:		0.44%

Top 10 Equity Holdings


	(% of net assets)
Microsoft Corp.		5.81	%
QUALCOMM, Inc.		5.77	%
Apple Computer, Inc.		4.80	%
Google, Inc.		3.90	%
Cisco Systems, Inc.		3.03	%
Starbucks Corp.		2.88	%
Intel Corp.		2.74	%
Amgen, Inc.		2.55	%
Oracle Corp.		2.30	%
Comcast Corp. — Class A		2.21	%

Sector Allocations

“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.



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

FINANCIAL HIGHLIGHTS


	Six Months
	Ended June 30,
	(Unaudited)			Year Ended December 31,
	2006			2005			2004			2003			2002			2001

Net asset value, beginning of period	$	22.97		$	22.81		$	20.72		$	13.94		$	22.30		$	33.35

Investment Activities:
Net investment income / (loss)		(0.00	)⁽³⁾		0.02			0.12			(0.04	)		(0.07	)		—
Net realized and unrealized gains / (losses)		(0.99	)		0.26			1.97			6.82			(8.29	)		(11.05	)

Total from Investment Activities		(0.99	)		0.28			2.09			6.78			(8.36	)		(11.05	)


DISTRIBUTIONS:
Net investment income		(0.03	)		(0.12	)		—			—			—			—

Total Distributions		(0.03	)		(0.12	)		—			—			—			—

Net asset value, end of period	$	21.95		$	22.97		$	22.81		$	20.72		$	13.94		$	22.30

Total return		-4.32	%		1.30	%		10.09	%		48.64	%		-37.49	%		-33.13	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets – net⁽¹⁾		0.65	%⁽²⁾		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Ratio of expenses to average net assets – gross		0.74	%⁽²⁾		0.76	%		0.79	%		0.91	%		1.11	%		0.97	%
Ratio of net investment income / (loss) to average net assets		-0.01	%⁽²⁾		0.09	%		0.61	%		-0.31	%		-0.43	%		-0.21	%
Portfolio turnover rate		4.47	%		13.86	%		4.19	%		3.97	%		11.79	%		5.49	%
Net assets, end of period (000’s)	$	24,214		$	26,330		$	27,607		$	23,350		$	9,583		$	14,560


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

⁽²⁾		Annualized.

⁽³⁾		Less than $0.01 per share.

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



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

JUNE 30, 2006 (Unaudited)


	SHARES		VALUE

COMMON STOCKS — 95.3%
CONSUMER DISCRETIONARY — 18.0%
Amazon.com, Inc. ^(a)		4,734	$	183,111
Apollo Group, Inc. ^(a)		3,003		155,165
Bed Bath & Beyond, Inc. ^(a)		6,487		215,174
Comcast Corp. — Class A ^(a)		16,330		534,644
Discovery Holding Co. ^(a)		4,070		59,544
eBay, Inc. ^(a)		18,197		532,990
EchoStar Communications Corp. — Class A ^(a)		3,658		112,703
Expedia, Inc. ^(a)		5,861		87,739
Garmin Ltd.		1,784		188,105
IAC/InterActiveCorp ^(a)		5,709		151,231
Lamar Advertising Co. ^(a)		1,442		77,666
Liberty Global, Inc. ^(a)		3,915		84,172
NTL Inc.		5,304		132,070
PETsMART, Inc.		2,383		61,005
Ross Stores, Inc.		2,490		69,845
Sears Holdings Corp. ^(a)		2,806		434,481
Sirius Satellite Radio, Inc. ^(a)		25,956		123,291
Staples, Inc.		8,370		203,558
Starbucks Corp. ^(a)		18,456		696,899
Urban Outfitters, Inc. ^(a)		3,037		53,117
Wynn Resorts Ltd ^(a)		1,909		139,930
XM Satellite Radio Holdings, Inc. — Class A ^(a)		4,548		66,628

				4,363,068

CONSUMER STAPLES - 1.6%
Costco Wholesale Corp.		4,264		243,602
Whole Foods Market, Inc.		2,331		150,676

				394,278


ENERGY — 0.4%
Patterson-UTI Energy, Inc.		3,080		87,195


HEALTH CARE — 13.6%
Amgen, Inc. ^(a)		9,456		616,815
Amylin Pharmaceuticals, Inc. ^(a)		2,105		103,924
Biogen Idec, Inc. ^(a)		6,396		296,327
Biomet, Inc.		5,706		178,541
Celgene Corp. ^(a)		5,861		277,987
Dentsply International, Inc.		1,328		80,477
Express Scripts, Inc. ^(a)		2,291		164,356
Genzyme Corp. ^(a)		5,617		342,918
Gilead Sciences, Inc. ^(a)		7,711		456,183
Intuitive Surgical, Inc. ^(a)		630		74,321
Lincare Holdings, Inc. ^(a)		1,660		62,814
MedImmune, Inc. ^(a)		4,503		122,031
Patterson Companies, Inc. ^(a)		2,325		81,212
Sepracor, Inc. ^(a)		1,819		103,938
Teva Pharmaceutical Industries, Ltd. — ADR		10,763		340,003

				3,301,847


INDUSTRIALS — 4.7%
American Power Conversion Corp.		3,454		67,318
C.H. Robinson Worldwide, Inc.		2,862		152,545
Cintas Corp.		3,449		137,132
Expeditors International Washington, Inc.		3,710		207,797
Fastenal Co.		2,558		103,062
Joy Global, Inc.		2,110		109,910
Monster Worldwide, Inc. ^(a)		2,373		101,232
Paccar, Inc.		3,236	$	266,582

				1,145,578


INFORMATION TECHNOLOGY — 55.7%
Activision, Inc. ^(a)		4,313		49,082
Adobe Systems, Inc. ^(a)		10,084		306,150
Akamai Technologies, Inc. ^(a)		2,600		94,094
Altera Corp. ^(a)		8,717		152,983
Apple Computer, Inc. ^(a)		20,364		1,163,192
Applied Materials, Inc.		13,955		227,187
ATI Technologies, Inc. ^(a)		4,232		61,787
Autodesk, Inc. ^(a)		4,117		141,872
BEA Systems, Inc. ^(a)		6,176		80,844
Broadcom Corp. — Class A ^(a)		7,401		222,400
Cadence Design Systems, Inc. ^(a)		5,089		87,276
CDW Corp.		1,483		81,046
Check Point Software Technologies Ltd. ^(a)		4,123		72,482
CheckFree Corp. ^(a)		1,527		75,678
Cisco Systems, Inc. ^(a)		37,592		734,172
Citrix Systems, Inc. ^(a)		3,754		150,686
Cognizant Technology Solutions Corp. ^(a)		2,381		160,408
Comverse Technology, Inc. ^(a)		3,588		70,935
Dell, Inc. ^(a)		14,459		352,944
Electronic Arts, Inc. ^(a)		5,238		225,443
Fiserv, Inc. ^(a)		3,784		171,642
Flextronics International Ltd. ^(a)		10,724		113,889
Google, Inc. ^(a)		2,254		945,170
Intel Corp.		35,042		664,046
Intuit, Inc. ^(a)		3,815		230,388
JDS Uniphase Corp. ^(a)		32,975		83,427
Juniper Networks, Inc. ^(a)		6,326		101,153
KLA-Tencor Corp.		4,136		171,933
Lam Research Corp. ^(a)		2,514		117,203
Linear Technology Corp.		6,987		233,995
Marvell Technology Group Ltd. ^(a)		4,806		213,050
Maxim Integrated Products, Inc.		7,687		246,830
Microchip Technology, Inc.		3,030		101,656
Microsoft Corp.		60,337		1,405,852
Network Appliance, Inc. ^(a)		6,694		236,298
NVIDIA Corp. ^(a)		5,968		127,059
Oracle Corp. ^(a)		38,442		557,025
Paychex, Inc.		6,156		239,961
QUALCOMM, Inc.		34,876		1,397,481
Red Hat, Inc. ^(a)		3,131		73,265
Research In Motion Ltd. ^(a)		3,170		221,171
SanDisk Corp. ^(a)		3,045		155,234
Sun Microsystems, Inc. ^(a)		25,744		106,838
Symantec Corp. ^(a)		18,655		289,899
Telefonaktiebolaget LM Ericsson — ADR		1,932		63,833
Tellabs, Inc. ^(a)		4,462		59,389
VeriSign, Inc. ^(a)		3,973		92,054
Xilinx, Inc.		7,821		177,146
Yahoo!, Inc. ^(a)		11,655		384,615

				13,492,163


MATERIALS - 0.4%
Sigma-Aldrich Corp.		1,137		82,592

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		NASDAQ-100 INDEX PORTFOLIO


	SHARES		VALUE

TELECOMMUNICATION SERVICES — 0.9%
Millicom International Cellular S.A. ^(a)		1,720	$	78,139
NII Holdings, Inc. ^(a)		2,594		146,250

				224,389


Total Common Stocks (Cost $20,213,597)				23,091,110


SHORT TERM INVESTMENTS^(d)— 4.1%
MONEY MARKET FUNDS - 3.7%
Northern Institutional Diversified Assets Portfolio		886,660		886,660


	PRINCIPAL
	AMOUNT		VALUE

U.S. TREASURY BILLS — 0.4% 4.800%, 09/14/2006	$	100,000	$	99,039

Total Short Term Investments (Cost $985,666)				985,699

TOTAL INVESTMENTS — 99.4% (Cost $21,199,263) ^(b)				24,076,809

NORTHERN INSTITUTIONAL LIQUID ASSETS PORTFOLIO ^(c) — 8.9%				2,150,868

LIABILITIES IN EXCESS OF OTHER ASSETS — (8.3)%				(2,013,311	)

TOTAL NET ASSETS — 100.0%			$	24,214,366

ADR American Depository Receipt


^(a)		Non income producing security.

^(b)		For federal income tax purposes, cost is $22,045,134 and gross unrealized appreciation and depreciation of securities as of June 30, 2006 was $4,517,378 and ($2,485,703), respectively, with a net appreciation of $2,031,675.

^(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 $2,792,243, $2,150,868, and $686,460, respectively.

^(d)		Securities and other assets with an aggregate value of $954,900 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of June 30, 2006:


			Unrealized
			Appreciation/
Type	Contracts		(Depreciation)

Nasdaq-100 Index (09/06)		4	$	10,018
Nasdaq-100 Index Mini (09/06)		10		5,515

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

Summit Mutual Funds, Inc. — Pinnacle Series


NASDAQ-100 INDEX PORTFOLIO		FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)


ASSETS
Investments in securities, at value	$	24,076,809
Collateral for securities loaned, at fair value		2,150,868
Receivables:
Shares sold		173,083
Interest and dividends		1,724
Receivable from Adviser		2,920
Prepaid expenses and other		2,804

		26,408,208


LIABILITIES
Payables:
Shares redeemed		8,318
Payable upon return of securities loaned		2,150,868
Administration expenses		5,928
Directors’ fees		159
Custodian fees		3,312
Fund accounting fees		4,011
Professional fees		8,389
Variation margin		8,100
Other accrued expenses		4,757

		2,193,842


NET ASSETS*
Paid-in capital		30,779,857
Accumulated net investments income / (loss)		(11,049	)
Accumulated net realized gain / (loss) on investments and futures contracts		(9,447,521	)
Net unrealized appreciation / (depreciation) on investments and futures contracts		2,893,079

	$	24,214,366


Investments at cost	$	21,199,263
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS


			Shares
Share Class	Net Assets		Outstanding
Class I	$	24,214,366		1,102,937	$	21.95


*		FEDERAL TAX DATA AS OF DECEMBER 31, 2005


Undistributed ordinary income	$	24,490
Unrealized appreciation	$	2,378,665

Capital Loss Carryforward Expiring December 31:



2008	2009	2010	2011	2012	2013
$(905,274)	$(1,618,824)	$(3,618,754)	$(231,065)	$(139,726)	$(1,358,042)

STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 (Unaudited)


INVESTMENT INCOME
Interest	$	19,476
Dividends		58,041
Foreign dividend taxes withheld		(232	)
Other income		4,611

		81,896


EXPENSES
Advisory fees		45,039
Administration expenses		12,868
Custodian fees and expenses		5,601
Fund accounting fees and expenses		10,937
Professional fees		7,326
Directors’ fees		1,525
Transfer agent fees		5,765
Royalty fee		2,340
Other expenses		3,354

		94,755
Reimbursements and waivers		(11,110	)

		83,645

NET INVESTMENT INCOME / (LOSS)		(1,749	)


REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments and options		(708,652	)
Net realized gain / (loss) on futures contracts		(72,129	)

		(780,781	)

Net change in unrealized appreciation / (depreciation) on investments and futures contracts		(278,887	)

NET REALIZED AND UNREALIZED GAIN / (LOSS)		(1,059,668	)

NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS	$	(1,061,417	)

TRANSACTIONS WITH AFFILIATES:


Percent of Current
Net Asset Value
Advisory	Administration	Expense
Fee	Fee	Limit⁽¹⁾	Waiver	Reimbursement

0.35%	0.10%	0.30%	$11,110	$—


⁽¹⁾		The Adviser has agreed to pay other expenses of the portfolio, other than the advisory fees, to the extent that such expenses exceed the stated percentage of their average net assets.

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

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL STATEMENTS		NASDAQ-100 INDEX PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS


	For the
	Six Months
	Ended June 30,			Year Ended
	(Unaudited)			December 31,
	2006			2005
OPERATIONS
Net investment income / (loss)	$	(1,749	)	$	24,484
Net realized gain / (loss) on investments and futures		(780,781	)		(1,274,075	)
Net change in unrealized appreciation / (depreciation) on investments		(278,887	)		1,481,053


		(1,061,417	)		231,462

DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(33,790	)		(150,044	)


		(33,790	)		(150,044	)

FUND SHARE TRANSACTIONS
Proceeds from shares sold		2,338,302			5,995,790
Reinvestment of distributions		33,790			150,044
Payments for shares redeemed		(3,393,016	)		(7,503,339	)


		(1,020,924	)		(1,357,505	)


NET INCREASE / (DECREASE) IN NET ASSETS		(2,116,131	)		(1,276,087	)

NET ASSETS
Beginning of period		26,330,497			27,606,584


End of period	$	24,214,366		$	26,330,497


ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME / (LOSS)	$	(11,049	)	$	24,490


FUND SHARE TRANSACTIONS
Sold		101,372			275,249
Reinvestment of distributions		1,429			7,176
Redeemed		(146,150	)		(346,239	)


Net increase / (decrease) from fund share transactions		(43,349	)		(63,814	)


TOTAL COST OF PURCHASES OF:
Common Stocks	$	1,111,224		$	3,318,253


	$	1,111,224		$	3,318,253

TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	1,706,375		$	4,144,265


	$	1,706,375		$	4,144,265

*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	33,790		$	150,044


	$	33,790		$	150,044

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

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 June 30, 2006, the Summit Russell 2000 Index Portfolio’s (Class I) total return was 7.88% (before the impact of any product or contract-level fees). This compares to a 8.21% total return for the Russell 2000 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; broker’s 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.

Fund Data


Managers:		Gary R. Rodmaker
		Nick J. Kotsonis
		Kevin P. Aug
Inception Date:		April 27, 2000
Total Net Assets:		$86.66 Million
No. of Holdings:		1976
Median Cap Size:		$614 Million
Average Price-to-book Ratio:		2.38 x
Dividend Yield:		1.07%

Top 10 Equity Holdings


	(% of net assets)
Maverick Tube Corp.		0.20	%
Hologic, Inc.		0.17	%
JetBlue Airways Corp.		0.16	%
Phillips-Van Heusen		0.16	%
Formfactor, Inc.		0.15	%
RSA Security, Inc.		0.15	%
Polycom, Inc.		0.15	%
Alexandria Real Estate Equities, Inc.		0.15	%
3Com Corp.		0.15	%
Highwoods Properties, Inc.		0.15	%

Sector Allocation

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.

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL HIGHLIGHTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

FINANCIAL HIGHLIGHTS


	CLASS I
	Six Months
	Ended June 30,
	(Unaudited)			Year Ended December 31,
	2006			2005			2004			2003			2002			2001
Net asset value, beginning of period	$	65.46		$	63.92		$	54.40		$	37.52		$	48.10		$	49.95

Investment Activities:
Net investment income / (loss)		0.31	⁽⁴⁾		0.41			0.31	⁽⁴⁾		0.22			0.29			0.40
Net realized and unrealized gains / (losses)		4.88			2.07			9.32			16.95			(10.31	)		0.35

Total from Investment Activities		5.19			2.48			9.63			17.17			(10.02	)		0.75


DISTRIBUTIONS:
Net investment income		(0.44	)		(0.31	)		(0.11	)		(0.29	)		(0.09	)		(0.45	)
Net realized gains		(2.17	)		(0.63	)		—			—			(0.47	)		(2.15	)

Total Distributions		(2.61	)		(0.94	)		(0.11	)		(0.29	)		(0.56	)		(2.60	)

Net asset value, end of period	$	68.04		$	65.46		$	63.92		$	54.40		$	37.52		$	48.10

Total return		7.88	%		4.01	%		17.72	%		46.19	%		-21.05	%		1.54	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets — net⁽²⁾		0.63	%⁽³⁾		0.69	%		0.75	%		0.75	%		0.75	%		0.75	%
Ratio of expenses to average net assets — gross		0.63	%⁽³⁾		0.69	%		0.76	%		1.12	%		1.33	%		1.10	%
Ratio of net investment income / (loss) to average net assets		0.89	%⁽³⁾		0.70	%		0.60	%		0.57	%		0.65	%		0.90	%
Portfolio turnover rate		21.16	%		25.20	%		27.27	%		23.87	%		30.78	%		32.70	%
Net assets, end of period (000’s)	$	86,365		$	75,815		$	68,770		$	25,794		$	13,863		$	21,503


	CLASS F
	Six Months			Period from
	Ended June 30,			October 4, 2004⁽¹⁾
	(Unaudited)			to December 31,
	2006			2005
Net asset value, beginning of period	$	65.43		$	64.41

Investment Activities:
Net investment income / (loss)		0.24	⁽⁴⁾		0.12
Net realized and unrealized gains / (losses)		4.88			0.90

Total from Investment Activities		5.12			1.02

DISTRIBUTIONS:
Net investment income		(0.42	)		—
Net realized gains		(2.17	)		—

Total Distributions		(2.59	)		—

Net asset value, end of period	$	67.96		$	65.43

Total return		7.78	%		1.58	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets — net⁽²⁾		0.83	%⁽³⁾		0.84	%⁽³⁾
Ratio of expenses to average net assets — gross		0.83	%⁽³⁾		0.84	%⁽³⁾
Ratio of net investment income / (loss) to average net assets		0.69	%⁽³⁾		0.74	%⁽³⁾
Portfolio turnover rate		21.16	%		25.20	%
Net assets, end of period (000’s)	$	295		$	5


⁽¹⁾		Commencement of operations.

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

⁽³⁾		Annualized.

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

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

Summit Mutual Funds, Inc. — Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS

JUNE 30, 2006 (Unaudited)


	SHARES		VALUE

COMMON STOCKS — 93.7%
CAPITAL GOODS — 10.6%
AAR Corp. ^(a)		2,268	$	50,418
ABX Air, Inc. ^(a)		3,781		22,837
Acco Brands Corp. ^(a)		2,933		64,233
Accuride Corp. ^(a)		1,474		18,381
Actuant Corp. Class A		1,738		86,813
ADE Corp. ^(a)		554		17,999
Advanced Energy Industries, Inc. ^(a)		2,295		30,386
Aftermarket Technology Corp. ^(a)		1,332		33,100
Airtran Holdings, Inc. ^(a)		5,587		83,023
Alaska Air Group, Inc. ^(a)		2,572		101,388
American Axle & Manufacturing Holdings, Inc.		3,379		57,815
American Commercial Lines ^(a)		2,003		120,681
American Ecology Corp.		1,015		26,898
American Railcar Industries, Inc.		496		16,423
American Superconductor Corp. ^(a)		2,072		18,296
Andrew Corp. ^(a)		10,397		92,117
AO Smith Corp.		1,334		61,844
Applied Films Corp. ^(a)		979		27,892
Applied Industrial Technologies, Inc.		2,915		70,852
Arctic Cat, Inc.		846		16,505
ARGON ST, Inc. ^(a)		832		22,156
Arkansas Best Corp.		1,643		82,495
Arris Group, Inc. ^(a)		6,720		88,166
ArvinMeritor, Inc.		4,545		78,129
Astec Industries, Inc. ^(a)		1,041		35,519
ASV, Inc. ^(a)		1,361		31,357
Asyst Technologies, Inc. ^(a)		3,083		23,215
Atlas Air Worldwide Holdings ^(a)		1,300		63,752
ATMI, Inc. ^(a)		2,318		57,069
Audiovox Corp. ^(a)		1,065		14,548
Aviall, Inc. ^(a)		2,168		103,023
Axcelis Technologies, Inc. ^(a)		6,481		38,238
Badger Meter, Inc.		905		24,435
Baldor Electric Co.		2,071		64,802
Bandag, Inc.		702		25,686
Basin Water, Inc. ^(a)		390		3,908
BE Aerospace, Inc. ^(a)		5,044		115,306
Belden CDT, Inc.		2,814		93,003
Blount International, Inc. ^(a)		2,472		29,713
Briggs & Stratton Corp.		3,353		104,312
Brooks Automation, Inc. ^(a)		4,807		56,723
Bucyrus International, Inc. — Class A		1,901		96,001
CalAmp Corp. ^(a)		1,514		13,459
Cascade Corp.		762		30,137
Cavco Industries, Inc. ^(a)		414		18,398
C-COR, Inc. ^(a)		3,092		23,870
Celadon Group, Inc. ^(a)		1,495		32,950
Champion Enterprises, Inc. ^(a)		4,917		54,284
Cognex Corp.		3,036		79,027
Cohu, Inc.		1,350		23,692
Color Kinetics, Inc. ^(a)		817		15,449
Columbus McKinnon Corp. NY ^(a)		1,192		25,914
Commercial Vehicle Group, Inc. ^(a)		1,372		28,373
Cooper Tire & Rubber Co.		4,148		46,209
Credence Systems Corp. ^(a)		5,791		20,268
CTS Corp.		2,293		34,143
Curtiss-Wright Corp.		2,813		86,865
Cymer, Inc. ^(a)		2,515		116,847
Darling International, Inc. ^(a)		4,151		18,804
Dionex Corp. ^(a)		1,265		69,145
DXP Enterprises Inc. ^(a)		113		3,511
Dynamex, Inc. ^(a)		725		15,812
EGL, Inc. ^(a)		2,101		105,470
Electro Scientific Industries, Inc. ^(a)		1,853		33,335
Emcore Corp. ^(a)		2,545		24,432
EnPro Industries, Inc. ^(a)		1,308		43,949
Entegris, Inc. ^(a)		8,960		85,389
ESCO Technologies, Inc. ^(a)		1,654		88,406
Esterline Technologies Corp. ^(a)		1,626		67,625
ExpressJet Holdings, Inc. ^(a)		2,849		19,687
Federal Signal Corp.		3,143		47,585
FEI Co. ^(a)		1,548		35,109
Flanders Corp. ^(a)		818		8,205
Fleetwood Enterprises, Inc. ^(a)		4,130		31,140
Florida East Coast Industries		2,293		119,993
Flow International Corp. ^(a)		2,278		32,051
Forward Air Corp.		2,093		85,248
Franklin Electric Co, Inc.		1,343		69,353
Freightcar America, Inc.		819		45,463
Gehl Co. ^(a)		708		18,075
General Cable Corp. ^(a)		3,252		113,820
Genesee & Wyoming, Inc. ^(a)		2,252		79,878
Genlyte Group, Inc. ^(a)		1,553		112,484
The Gorman-Rupp Co.		508		13,513
Greenbrier Cos, Inc.		881		28,844
Gulfmark Offshore, Inc. ^(a)		926		23,919
Headwaters, Inc. ^(a)		2,584		66,047
Heartland Express, Inc.		3,933		70,361
Heico Corp.		1,345		38,131
Herman Miller, Inc. ^(a)		4,321		111,352
Hovnanian Enterprises, Inc. ^(a)		3,248		97,700
HUB Group, Inc. ^(a)		2,434		59,706
IMPCO Technologies, Inc. ^(a)		1,457		15,546
Interdigital Communications Corp. ^(a)		3,466		120,998
Intevac, Inc. ^(a)		1,273		27,599
Itron, Inc. ^(a)		1,606		95,172
JetBlue Airways Corp. ^(a)		11,314		137,352
K&F Industries Holdings, Inc. ^(a)		1,083		19,202
Kadant, Inc. ^(a)		865		19,895
Kenexa Corp. ^(a)		1,021		32,519
Keystone Automotive Industries, Inc. ^(a)		984		41,544
Kimball International, Inc.		1,392		27,436
Knight Transportation, Inc.		3,706		74,861
Knoll, Inc.		2,159		39,639
Kulicke & Soffa Industries, Inc. ^(a)		3,675		27,232
Ladish, Inc. ^(a)		913		34,210
Lear Corp. ^(a)		4,386		97,413
Levitt Corp.		1,025		16,400
Lindsay Manufacturing Co.		754		20,448
Littelfuse, Inc. ^(a)		1,470		50,539
LTX Corp. ^(a)		3,970		27,830
M/I Homes, Inc.		775		27,187
Marine Products Corp.		813		7,910
Maritrans, Inc.		720		17,928
Marten Transport Ltd. ^(a)		928		20,175
MasTec, Inc. ^(a)		2,621		34,623

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO


	SHARES		VALUE
CAPITAL GOODS — 10.6% (Continued)
Mattson Technology, Inc. ^(a)		3,416	$	33,374
Measurement Specialties, Inc. ^(a)		738		16,435
Meritage Homes Corp. ^(a)		1,473		69,599
Mesa Air Group, Inc. ^(a)		2,180		21,473
Metrologic Instruments, Inc. ^(a)		735		11,032
Middleby Corp. ^(a)		434		37,567
Miller Industries Inc./TN		622		12,875
Mine Safety Appliances Co.		2,012		80,882
MKS Instruments, Inc. ^(a)		2,370		47,684
Modine Manufacturing Co.		2,170		50,691
Monaco Coach Corp.		1,693		21,501
Moog, Inc. ^(a)		2,275		77,851
MTC Technologies, Inc. ^(a)		558		13,186
MTS Systems Corp.		1,234		48,755
NACCO Industries, Inc.		285		39,162
Navistar International Corp. ^(a)		4,046		99,572
Noble International Ltd.		696		9,967
Nordson Corp.		1,917		94,278
Old Dominion Freight Line ^(a)		1,826		68,639
Orbital Sciences Corp. ^(a)		3,604		58,169
Orleans Homebuilders, Inc.		227		3,689
OYO Geospace Corp. ^(a)		256		14,620
Pacer International, Inc.		2,333		76,009
Palm Harbor Homes, Inc. ^(a)		536		9,428
PAM Transportation Services ^(a)		343		9,909
Patriot Transportation Holding, Inc. ^(a)		102		8,852
Paxar Corp. ^(a)		2,674		55,004
PHI, Inc. ^(a)		893		29,648
Photon Dynamics, Inc. ^(a)		1,055		13,209
Photronics, Inc. ^(a)		2,494		36,911
Pike Electric Corp. ^(a)		842		16,217
Polaris Industries, Inc. ^(a)		2,695		116,694
Polycom, Inc. ^(a)		5,900		129,328
Powell Industries, Inc. ^(a)		375		8,974
Power-One, Inc. ^(a)		4,848		31,997
Powerwave Technologies, Inc. ^(a)		7,084		64,606
Presstek, Inc. ^(a)		1,909		17,773
Quality Distribution, Inc. ^(a)		555		7,370
Quantum Fuel Systems Technologies Worldwide, Inc. ^(a)		2,935		9,979
Radyne Comstream Corp. ^(a)		1,171		13,326
RAE Systems, Inc. ^(a)		2,510		10,040
RailAmerica, Inc. ^(a)		2,356		24,644
Raser Technologies, Inc. ^(a)		1,322		12,744
Reddy Ice Holdings, Inc.		1,087		22,120
Regal-Beloit Corp.		2,003		88,432
Republic Airways Holdings, Inc. ^(a)		2,117		36,031
Robbins & Myers, Inc.		725		18,952
Rofin-Sinar Technologies, Inc. ^(a)		941		54,079
Rudolph Technologies, Inc. ^(a)		1,491		21,620
Sauer-Danfoss, Inc.		565		14,362
SCS Transportation, Inc. ^(a)		948		26,098
Semitool, Inc. ^(a)		1,149		10,364
Skyline Corp.		376		16,085
Skywest, Inc.		4,120		102,176
Smith & Wesson Holding Corp. ^(a)		1,900		15,618
Sonic Solutions, Inc. ^(a)		1,669		27,539
Standex International Corp.		773		23,461
Superior Industries International		1,384		25,313
Symmetricom, Inc. ^(a)		2,988		21,125
TAL International Group, Inc. ^(a)		1,052		25,353
Taleo Corp. ^(a)		886		10,446
Taser International, Inc. ^(a)		3,959		31,316
Team, Inc. ^(a)		414		10,371
Technical Olympic USA, Inc.		952		13,671
Technitrol, Inc.		2,527		58,500
Tecumseh Products Co. ^(a)		1,031		19,795
Teledyne Technologies, Inc. ^(a)		2,080		68,141
Tennant Co.		437		21,972
Tenneco, Inc. ^(a)		2,825		73,450
Titan International, Inc.		926		17,325
Transdigm Group, Inc. ^(a)		720		17,244
Triumph Group, Inc. ^(a)		993		47,664
Ultratech, Inc. ^(a)		1,550		24,397
United Industrial Corp.		574		25,974
Universal Truckload Services, Inc. ^(a)		310		10,580
US Xpress Enterprises, Inc. ^(a)		560		15,131
USA Truck, Inc. ^(a)		390		6,950
Varian Semiconductor Equipment Associates, Inc. ^(a)		3,580		116,744
Veeco Instruments, Inc. ^(a)		1,970		46,965
Vicor Corp.		1,197		19,834
Visteon Corp. ^(a)		8,361		60,283
Wabash National Corp.		2,021		31,043
Watts Water Technologies, Inc.		1,623		54,452
Werner Enterprises, Inc.		3,318		67,256
Westinghouse Air Brake Technologies Corp.		3,038		113,621
Williams Scotsman International, Inc. ^(a)		1,938		42,326
Winnebago Industries, Inc.		2,083		64,656
Woodward Governor Co.		1,845		56,291
X-Rite, Inc.		1,275		14,012
Zygo Corp. ^(a)		1,176		19,275

				9,198,618


CONSUMER CYCLICALS — 17.9%
1-800-FLOWERS.COM, Inc. ^(a)		1,646		9,497
24/7 Real Media, Inc. ^(a)		3,156		27,710
99 Cents Only Stores ^(a)		2,756		28,828
Aaron Rents, Inc.		2,717		73,033
ABM Industries, Inc.		2,849		48,718
AC Moore Arts & Crafts, Inc. ^(a)		905		14,761
Administaff, Inc.		1,487		53,249
The Advisory Board Co. ^(a)		1,200		57,708
ADVO, Inc.		2,026		49,860
Aeropostale, Inc. ^(a)		3,595		103,860
AFC Enterprises ^(a)		1,673		21,331
Alderwoods Group, Inc. ^(a)		2,501		48,669
Ambassadors Group, Inc.		1,345		38,844
Ambassadors International, Inc. ^(a)		465		10,811
Amerco, Inc. ^(a)		667		67,140
American Greetings ^(a)		3,476		73,031
American Woodmark Corp.		707		24,773
America’s Car Mart, Inc. ^(a)		499		10,135
Ameristar Casinos, Inc.		1,584		30,809
AMN Healthcare Services, Inc. ^(a)		2,116		42,955
Applebees International, Inc. ^(a)		4,838		92,986
aQuantive, Inc. ^(a)		4,959		125,611
Arbitron, Inc.		2,035		78,002
Asbury Automotive Group, Inc. ^(a)		807		16,899
Aztar Corp. ^(a)		2,172		112,857
Bally Technologies, Inc. ^(a)		3,308		54,483

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

Summit Mutual Funds, Inc. — Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE
CONSUMER CYCLICALS — 17.9% (Continued)
Bally Total Fitness Holding Corp. ^(a)		2,399	$	16,265
Banta Corp.		1,609		74,545
Barrett Business Services ^(a)		454		8,331
Bebe Stores, Inc. ^(a)		1,539		23,731
Belo Corp. ^(a)		5,916		92,290
Big 5 Sporting Goods Corp.		1,232		24,024
Big Lots, Inc. ^(a)		7,344		125,436
BJ’s Restaurants, Inc. ^(a)		893		19,950
Blockbuster, Inc. ^(a)		12,336		61,433
Blue Nile, Inc. ^(a)		924		29,716
Blyth, Inc.		1,727		31,880
Bob Evans Farms, Inc.		2,206		66,202
The Bon-Ton Stores Inc.		360		7,877
Books-A-Million, Inc. ^(a)		923		15,396
Borders Group, Inc. ^(a)		4,217		77,846
Bowne & Co, Inc.		2,057		29,415
Bright Horizons Family Solutions, Inc. ^(a)		1,756		66,184
Brightpoint, Inc. ^(a)		3,172		42,917
Brown Shoe Co, Inc.		1,712		58,345
The Buckle Inc.		629		26,336
Buffalo Wild Wings, Inc. ^(a)		387		14,826
Build-A-Bear-Workshop, Inc. ^(a)		959		20,628
Cabela’s, Inc. ^(a)		1,997		38,462
Cache, Inc. ^(a)		769		13,334
California Pizza Kitchen, Inc. ^(a)		1,204		33,086
Callaway Golf Co.		4,946		64,249
Carmike Cinemas, Inc.		768		16,189
Carter’s, Inc. ^(a)		3,161		83,545
Casella Waste Systems, Inc. ^(a)		1,210		15,839
Casual Male Retail Group, Inc. ^(a)		1,685		16,934
Catalina Marketing Corp.		3,007		85,579
The Cato Corp.		1,987		51,364
CBRL Group, Inc. ^(a)		2,014		68,315
CDI Corp.		780		22,620
CEC Entertainment, Inc. ^(a)		2,191		70,375
Central European Distribution Corp. ^(a)		2,069		52,056
Central Garden and Pet Co. ^(a)		1,394		60,012
Central Parking Corp.		652		10,432
Century Casinos, Inc. ^(a)		1,323		14,169
Cenveo, Inc. ^(a)		3,436		61,676
Charlotte Russe Holding, Inc. ^(a)		932		22,312
Charming Shoppes, Inc. ^(a)		7,763		87,256
Charter Communications, Inc. ^(a)		25,841		29,200
Chemed Corp.		1,638		89,320
Cherokee, Inc.		394		16,296
The Children’s Place Retail Stores, Inc. ^(a)		1,472		88,394
Chipotle Mexican Grill, Inc. ^(a)		456		27,793
Christopher & Banks Corp.		2,233		64,757
Churchill Downs, Inc.		429		16,066
Citadel Broadcasting Corp.		2,641		23,505
Citi Trends, Inc. ^(a)		411		17,546
CKE Restaurants, Inc.		3,825		63,533
CKX, Inc. ^(a)		3,327		45,147
Clark, Inc.		1,011		13,345
CMGI, Inc. ^(a)		31,490		38,103
CNET Networks, Inc. ^(a)		9,764		77,917
CNS, Inc.		885		21,683
Cogent Inc. ^(a)		2,817		42,452
Coinmach Service Corp.		1,654		16,953
Coinstar, Inc. ^(a)		1,733		41,488
Columbia Sportswear Co. ^(a)		857		38,788
Conn’s, Inc. ^(a)		508		13,487
Consolidated Graphics, Inc. ^(a)		704		36,650
Core Mark Holding Co, Inc. ^(a)		646		23,127
Corinthian Colleges, Inc. ^(a)		5,473		78,592
Cornell Cos, Inc. ^(a)		744		11,428
Cosi, Inc. ^(a)		2,238		13,943
Cost Plus, Inc. ^(a)		1,427		20,920
CoStar Group, Inc. ^(a)		1,015		60,727
Courier Corp.		555		22,211
Covad Communications Group, Inc. ^(a)		19,072		38,335
Cox Radio, Inc. ^(a)		2,942		42,424
CRA International Inc. ^(a)		670		30,244
Crocs, Inc. ^(a)		567		14,260
Cross Country Healthcare, Inc. ^(a)		2,089		37,999
Crown Media Holdings, Inc. ^(a)		921		3,795
CSK Auto Corp. ^(a)		2,922		34,976
CSS Industries, Inc.		323		9,286
Cumulus Media, Inc. ^(a)		2,501		26,686
DEB Shops, Inc.		242		5,835
Deckers Outdoor Corp. ^(a)		568		21,902
dELiA*s Inc. ^(a)		1,329		10,738
Denny’s Corp. ^(a)		5,861		21,627
DeVry, Inc. ^(a)		3,772		82,871
DiamondCluster International, Inc. ^(a)		1,792		14,193
Digital Theater Systems, Inc. (DTS) ^(a)		1,079		21,019
Directed Electronics, Inc. ^(a)		513		6,731
Dollar Thrifty Automotive Group ^(a)		1,629		73,419
Dominos Pizza, Inc.		2,468		61,058
Dover Downs Gaming & Entertainment, Inc.		795		15,614
Dover Motorsports, Inc.		925		5,430
Dress Barn, Inc. ^(a)		2,996		75,949
Drugstore.Com ^(a)		4,439		12,873
DSW, Inc. — Class A ^(a)		1,055		38,423
Dyncorp International, Inc. ^(a)		1,630		16,919
Earthlink, Inc. ^(a)		8,687		75,229
Educate, Inc. ^(a)		1,141		8,740
Elizabeth Arden, Inc. ^(a)		1,652		29,538
Emmis Communications Corp. ^(a)		2,071		32,390
Entercom Communications Corp.		2,169		56,741
Entravision Communications Corp. ^(a)		4,612		39,525
Ethan Allen Interiors, Inc.		2,100		76,755
Exponent, Inc. ^(a)		888		15,007
Ezcorp, Inc. ^(a)		770		29,021
Finish Line		2,727		32,260
First Advantage Corp. ^(a)		479		11,142
First Consulting Group, Inc. ^(a)		1,404		12,411
Fisher Communications, Inc. ^(a)		370		15,588
Forrester Research, Inc. ^(a)		811		22,692
Fossil, Inc. ^(a)		3,023		54,444
Fred’s, Inc.		2,485		33,175
FTD Group, Inc. ^(a)		740		9,990
FTI Consulting, Inc. ^(a)		2,528		67,675
Furniture Brands International, Inc.		2,950		61,478
G&K Services, Inc.		1,385		47,506
Gaiam, Inc. — Class A ^(a)		1,055		14,791
Gaylord Entertainment Co. ^(a)		2,606		113,726
Gemstar-TV Guide International, Inc. ^(a)		15,955		56,162

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO


	SHARES		VALUE
CONSUMER CYCLICALS — 17.9% (Continued)
Genesco, Inc. ^(a)		1,460	$	49,450
The Geo Group Inc. ^(a)		845		29,617
Gevity HR, Inc.		1,666		44,232
Global Cash Access, Inc. ^(a)		2,168		33,886
Global Imaging Systems, Inc. ^(a)		1,521		62,787
Gray Television, Inc.		2,814		16,293
Great Wolf Resorts, Inc. ^(a)		1,652		19,841
Group 1 Automotive, Inc.		1,618		91,158
GSI Commerce, Inc. ^(a)		2,550		34,502
Guess ?, Inc. ^(a)		1,364		56,947
Guitar Center, Inc. ^(a)		1,678		74,621
Gymboree Corp. ^(a)		2,144		74,525
Harris Interactive, Inc. ^(a)		3,316		18,901
Hartmarx Corp. ^(a)		1,673		10,038
Haverty Furniture Cos., Inc.		1,215		19,063
Heidrick & Struggles International, Inc. ^(a)		1,216		41,149
Hibbett Sporting Goods, Inc. ^(a)		2,227		53,225
Hollinger International, Inc.		4,879		39,178
Home Solutions of America, Inc. ^(a)		2,451		15,123
Hooker Furniture Corp.		654		10,968
HOT Topic, Inc. ^(a)		2,797		32,193
Hudson Highland Group, Inc. ^(a)		1,556		16,789
Iconix Brand Group, Inc. ^(a)		2,284		37,321
ICT Group, Inc. ^(a)		441		10,818
Ihop Corp.		1,218		58,561
IHS Inc. ^(a)		1,521		45,067
IKON Office Solutions, Inc.		7,100		89,460
Infospace, Inc. ^(a)		1,936		43,889
infoUSA, Inc.		2,126		21,919
Insight Enterprises, Inc. ^(a)		3,147		59,950
Inter Parfums, Inc.		244		4,202
Internap Network Services Corp. ^(a)		19,918		20,914
iPass, Inc. ^(a)		4,229		23,682
iRobot Corp. ^(a)		744		18,511
Isle of Capri Casinos, Inc. ^(a)		881		22,598
Jack in the Box, Inc. ^(a)		2,197		86,122
Jackson Hewitt Tax Service, Inc.		2,266		71,039
Jakks Pacific, Inc. ^(a)		1,632		32,787
Jo-Ann Stores, Inc. ^(a)		1,492		21,858
JoS. A. Bank Clothiers, Inc. ^(a)		1,166		27,937
Journal Communications, Inc.		2,850		32,034
Journal Register Co.		2,605		23,341
K2, Inc. ^(a)		3,081		33,706
Kellwood Co.		1,671		48,910
Kelly Services, Inc.		1,143		31,055
Kenneth Cole Productions, Inc.		505		11,277
Kforce, Inc. ^(a)		2,085		32,297
The Knot, Inc. ^(a)		947		19,821
Korn/Ferry International ^(a)		2,760		54,068
Krispy Kreme Doughnuts, Inc. ^(a)		3,593		29,247
K-Swiss, Inc.		1,618		43,201
Labor Ready, Inc. ^(a)		3,458		78,324
Lakes Entertainment, Inc. ^(a)		1,490		18,014
Landry’s Restaurants, Inc.		1,023		33,196
Lawson Products		256		10,092
La-Z-Boy, Inc.		3,384		47,376
Leapfrog Enterprises, Inc. ^(a)		2,099		21,200
LECG Corp. ^(a)		1,587		29,312
Lee Enterprises, Inc. ^(a)		2,980		80,311
Life Time Fitness, Inc. ^(a)		1,979		91,568
Lifetime Brands, Inc.		515		11,160
Lightbridge, Inc. ^(a)		1,772		22,947
Lin TV Corp. ^(a)		1,759		13,280
Lincoln Educational Services Corp. ^(a)		232		3,965
Liquidity Services, Inc. ^(a)		463		7,209
Lithia Motors, Inc.		962		29,168
Live Nation, Inc. ^(a)		4,155		84,596
LKQ Corp. ^(a)		2,912		55,328
Lodgenet Entertainment Corp. ^(a)		1,013		18,892
Lodgian, Inc. ^(a)		1,597		22,757
LoJack Corp. ^(a)		1,133		21,368
Lone Star Steakhouse & Saloon		1,114		29,220
Luby’s, Inc. ^(a)		1,684		17,564
Magna Entertainment Corp. ^(a)		2,341		12,314
Maidenform Brands, Inc. ^(a)		801		9,876
Mannatech, Inc.		983		12,396
Marchex, Inc. ^(a)		1,374		22,575
Marcus Corp.		1,265		26,413
MarineMax, Inc. ^(a)		838		21,981
Martha Stewart Living Omnimedia ^(a)		1,454		24,296
Marvel Entertainment, Inc. ^(a)		3,068		61,360
Matthews International Corp.		2,070		71,353
MAXIMUS, Inc.		1,195		27,664
McCormick & Schmick’s Seafood Restaurants, Inc. ^(a)		775		18,445
Media General, Inc.		1,295		54,248
Men’s Wearhouse, Inc. ^(a)		3,102		93,991
Midas, Inc. ^(a)		997		18,345
Midway Games, Inc. ^(a)		2,327		18,825
Monarch Casino & Resort, Inc. ^(a)		510		14,341
Monro Muffler, Inc.		658		21,424
Morgans Hotel Group Co. ^(a)		1,122		17,458
Morton’s Restaurant Group, Inc. ^(a)		536		8,212
Movado Group, Inc.		1,144		26,255
MPS Group, Inc. ^(a)		6,716		101,143
MTR Gaming Group, Inc. ^(a)		1,388		13,019
Multimedia Games, Inc. ^(a)		1,776		17,991
National Presto Industries, Inc.		265		13,854
Nautilus Group, Inc.		2,158		33,902
Navigant Consulting, Inc. ^(a)		2,769		62,718
Navigant International, Inc. ^(a)		1,011		16,206
Net 1 UEPS Technologies, Inc. ^(a)		3,127		85,523
NetFlix, Inc. ^(a)		2,655		72,243
Netratings, Inc. ^(a)		888		12,334
New York & Company, Inc. ^(a)		1,393		13,610
NIC, Inc. ^(a)		2,090		15,111
Nu Skin Enterprises, Inc.		3,646		54,143
Oakley, Inc.		1,580		26,623
O’Charleys, Inc. ^(a)		1,549		26,333
On Assignment, Inc. ^(a)		1,700		15,623
Outdoor Channel Holdings, Inc. ^(a)		856		8,834
Overstock.com, Inc. ^(a)		744		15,817
Oxford Industries, Inc.		871		34,326
Pacific Sunwear Of California ^(a)		4,891		87,696
The Pantry Inc. ^(a)		1,477		84,987
Papa John’s International, Inc. ^(a)		1,586		52,655
Parkervision, Inc. ^(a)		1,226		11,157
Parlux Fragrances, Inc. ^(a)		700		6,783
Payless Shoesource, Inc. ^(a)		4,351		118,217

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

Summit Mutual Funds, Inc. — Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE
CONSUMER CYCLICALS — 17.9% (Continued)
PeopleSupport, Inc. ^(a)		1,205	$	16,219
PEP Boys-Manny, Moe & Jack		3,590		42,111
Perficient, Inc. ^(a)		1,145		14,152
Perry Ellis International, Inc. ^(a)		533		13,490
Petco Animal Supplies, Inc. ^(a)		3,733		76,265
PetMed Express, Inc. ^(a)		1,222		13,405
PF Chang’s China Bistro, Inc. ^(a)		1,694		64,406
PHH Corp. ^(a)		3,407		93,829
Phillips-Van Heusen		3,595		137,185
Pier 1 Imports, Inc.		5,571		38,886
Pinnacle Entertainment, Inc. ^(a)		3,053		93,574
Playboy Enterprises, Inc. ^(a)		1,277		12,744
Playtex Products, Inc. ^(a)		3,638		37,944
Pre-Paid Legal Services, Inc.		656		22,632
Prestige Brands Holdings, Inc. ^(a)		1,825		18,195
Priceline.com, Inc. ^(a)		1,633		48,761
Pricesmart, Inc. ^(a)		518		5,190
Primedia, Inc. ^(a)		12,932		23,666
Private Media Group, Inc. ^(a)		1,641		7,713
Progressive Gaming International Corp. ^(a)		2,358		18,392
ProQuest Co. ^(a)		1,664		20,451
Providence Service Corp. ^(a)		744		20,259
Quiksilver, Inc. ^(a)		7,949		96,819
Radio One, Inc. ^(a)		5,032		37,237
Rare Hospitality International, Inc. ^(a)		2,139		61,518
RC2 Corp. ^(a)		1,357		52,462
The Reader’s Digest Association Inc.		6,457		90,140
Red Robin Gourmet Burgers, Inc. ^(a)		1,077		45,837
Regis Corp.		2,916		103,839
Renaissance Learning, Inc.		417		5,650
Rent-A-Center, Inc. ^(a)		4,522		112,417
Resources Connection, Inc. ^(a)		3,088		77,262
Restoration Hardware, Inc. ^(a)		1,953		14,023
Retail Ventures, Inc. ^(a)		1,270		22,631
Revlon, Inc. ^(a)		9,511		11,984
Riviera Holdings Corp. ^(a)		470		9,494
Rollins, Inc.		1,863		36,589
Ruby Tuesday, Inc.		3,877		94,638
Rush Enterprises, Inc. — Class A ^(a)		1,289		23,421
Russ Berrie & Co, Inc. ^(a)		734		8,999
Russell Corp.		2,059		37,391
Ruth’s Chris Steak House, Inc. ^(a)		1,136		23,197
Ryan’s Restaurant Group, Inc. ^(a)		2,722		32,419
Salem Communications Corp. ^(a)		741		9,640
Schawk, Inc.		779		13,633
Scholastic Corp. ^(a)		2,132		55,368
School Specialty, Inc. ^(a)		1,477		47,042
Sealy Corp. ^(a)		1,315		17,450
Select Comfort Corp. ^(a)		3,376		77,547
Shoe Carnival, Inc. ^(a)		415		9,902
Shuffle Master, Inc. ^(a)		2,217		72,673
Sinclair Broadcast Group, Inc.		2,857		24,456
Sirva, Inc. ^(a)		3,229		20,892
Sitel Corp. ^(a)		3,812		14,943
Six Flags, Inc. ^(a)		4,632		26,032
Skechers U.S.A., Inc. ^(a)		700		16,877
Sohu.com, Inc. ^(a)		1,609		41,496
Sonic Automotive, Inc.		1,906		42,275
Sonic Corp. ^(a)		5,590		116,216
Source Interlink Companies, Inc. ^(a)		2,142		25,490
Sourcecorp ^(a)		977		24,220
Spanish Broadcasting System ^(a)		2,506		12,806
Spectrum Brands, Inc. ^(a)		2,405		31,073
Speedway Motorsports, Inc.		959		36,193
Spherion Corp. ^(a)		3,853		35,139
The Sportsman’s Guide Inc. ^(a)		477		14,549
Stage Stores, Inc.		1,785		58,905
Stamps.com, Inc. ^(a)		1,215		33,801
Standard Parking Corp. ^(a)		332		8,991
Stanley Furniture Co, Inc.		724		17,354
Startek, Inc.		701		10,480
The Steak n Shake Co. ^(a)		1,804		27,313
Stein Mart, Inc.		1,672		24,746
Steinway Musical Instruments ^(a)		391		9,587
Steven Madden Ltd.		1,284		38,032
Stewart Enterprises, Inc.		6,887		39,600
Strayer Education, Inc.		914		88,768
Stride Rite Corp.		2,260		29,809
Syms Corp. ^(a)		360		6,624
Synagro Technologies, Inc. ^(a)		4,000		15,720
Systemax, Inc. ^(a)		533		4,157
Take-Two Interactive Software, Inc. ^(a)		4,659		50,410
The Talbots, Inc.		1,485		27,398
Tarragon Corp.		753		10,429
TeleTech Holdings, Inc. ^(a)		2,146		27,168
Tempur-Pedic International, Inc. ^(a)		3,265		44,110
Tetra Tech, Inc. ^(a)		3,738		66,312
Texas Roadhouse, Inc. ^(a)		3,396		45,914
THQ, Inc. ^(a)		4,022		86,875
Timberland Co. ^(a)		3,259		85,060
Tivo, Inc. ^(a)		4,993		35,700
Too, Inc. ^(a)		2,142		82,231
The Topps Co Inc.		2,213		18,191
Travelzoo, Inc. ^(a)		191		5,795
Triarc Companies		4,009		62,661
True Religion Apparel, Inc. ^(a)		858		15,187
Trump Entertainment Resorts, Inc. ^(a)		1,823		36,733
Tuesday Morning Corp.		1,674		22,013
Tupperware Corp.		3,950		77,776
Under Armour, Inc. ^(a)		1,354		57,707
Unifirst Corp.		512		17,664
United Natural Foods, Inc. ^(a)		2,550		84,201
United Online, Inc.		3,973		47,676
United Stationers, Inc. ^(a)		2,074		102,290
Universal Electronics, Inc. ^(a)		847		15,000
Universal Technical Institute, Inc. ^(a)		1,334		29,375
USANA Health Sciences, Inc. ^(a)		569		21,565
Vail Resorts, Inc. ^(a)		2,049		76,018
Valassis Communications, Inc. ^(a)		3,241		76,455
Valueclick, Inc. ^(a)		6,676		102,477
Valuevision Media, Inc. ^(a)		1,768		19,501
Vertrue, Inc. ^(a)		427		18,374
Viad Corp.		1,390		43,507
Volcom, Inc. ^(a)		854		27,319
Volt Information Sciences, Inc. ^(a)		443		20,644
W Holding Co, Inc.		7,078		47,069
The Warnaco Group Inc. ^(a)		2,997		55,984
Waste Connections, Inc. ^(a)		3,033		110,401

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO


	SHARES		VALUE
CONSUMER CYCLICALS — 17.9% (Continued)
Waste Industries USA, Inc.		330	$	7,484
Watson Wyatt & Co. Holdings		2,726		95,792
WebSideStory, Inc. ^(a)		1,139		13,896
West Marine, Inc. ^(a)		852		11,485
Westwood One, Inc. ^(a)		4,571		34,283
Wet Seal, Inc. ^(a)		4,633		22,609
Weyco Group, Inc.		324		7,523
Wireless Facilities, Inc. ^(a)		3,640		10,010
WMS Industries, Inc. ^(a)		1,759		48,179
Wolverine World Wide, Inc.		3,482		81,235
World Fuel Services Corp.		1,753		80,095
World Wrestling Entertainment, Inc.		1,271		21,467
Yankee Candle, Inc.		2,732		68,327
Zale Corp. ^(a)		3,039		73,210
Zumiez, Inc. ^(a)		939		35,278

				15,480,743

CONSUMER STAPLES — 1.8%
Alliance One International, Inc.		5,638		25,033
Arden Group, Inc.		73		8,261
Boston Beer Co, Inc. ^(a)		541		15,846
Builders Firstsource, Inc. ^(a)		765		15,575
Casey’s General Stores, Inc.		3,250		81,282
Chiquita Brands International, Inc.		2,707		37,302
Coca-Cola Bottling Co. Consolidated		257		13,048
Diamond Foods, Inc.		1,020		16,391
Farmer Bros Co.		371		8,043
Flowers Foods, Inc.		3,249		93,051
Frontier Airlines Holdings, Inc. ^(a)		2,224		16,035
Great Atlantic & Pacific Tea Co.		1,090		24,765
Green Mountain Coffee Roasters, Inc. ^(a)		250		10,043
Hain Celestial Group, Inc. ^(a)		1,892		48,738
Horizon Lines Inc. — Class A		899		14,402
Imperial Sugar Co. ^(a)		736		17,458
Ingles Markets, Inc.		700		11,900
J&J Snack Foods Corp.		781		25,828
Jones Soda Co. ^(a)		1,441		12,969
Lance, Inc.		1,935		44,544
Longs Drug Stores Corp.		1,995		91,012
M&F Worldwide Corp. ^(a)		601		9,676
Maui Land & Pineapple Co, Inc. ^(a)		188		7,106
Medifast, Inc. ^(a)		756		13,510
Nash Finch Co.		799		17,011
National Beverage Corp.		416		5,970
NBTY, Inc. ^(a)		3,614		86,411
Pathmark Stores, Inc. ^(a)		3,255		30,630
Peet’s Coffee & Tea, Inc. ^(a)		852		25,722
Performance Food Group Co. ^(a)		2,260		68,659
Pilgrim’s Pride Corp. ^(a)		2,636		68,009
Premium Standard Farms, Inc.		900		14,607
Ralcorp Holdings, Inc. ^(a)		1,785		75,916
Ruddick Corp.		2,592		63,530
Sanderson Farms, Inc.		1,116		31,237
Schweitzer-Mauduit International, Inc.		947		20,503
Seaboard Corp.		18		23,040
Sensient Technologies Corp.		3,065		64,089
Smart & Final, Inc. ^(a)		830		13,977
Spartan Stores, Inc.		1,253		18,331
Tiens Biotech Group USA, Inc. ^(a)		230		984
Tootsie Roll Industries, Inc.		2,316		67,465
Treehouse Foods, Inc. ^(a)		2,025		48,377
Universal Corp.		1,662		61,860
Vector Group Ltd.		2,257		36,676
Village Super Market, Inc. — Class A		107		6,995
Weis Markets, Inc.		621		25,585
Wild Oats Markets, Inc. ^(a)		1,852		36,299

				1,573,701

ENERGY — 5.0%
Allis Chalmers Energy, Inc. ^(a)		892		12,122
Alon USA Energy, Inc.		659		20,739
Alpha Natural Resources, Inc. ^(a)		3,368		66,080
Arena Resources, Inc. ^(a)		701		24,037
Atlas America, Inc. ^(a)		1,128		50,546
ATP Oil & Gas Corp. ^(a)		1,314		55,096
Atwood Oceanics, Inc. ^(a)		1,650		81,840
Aurora Oil & Gas Corp. ^(a)		4,335		17,340
Basic Energy Services, Inc. ^(a)		723		22,102
Berry Petroleum Co. — Class A		2,240		74,256
Bill Barrett Corp. ^(a)		1,854		54,897
Bois D’Arc Energy, Inc. ^(a)		840		13,835
Brigham Exploration Co. ^(a)		2,962		23,429
Bristow Group, Inc. ^(a)		1,510		54,360
Bronco Drilling Company, Inc. ^(a)		885		18,488
Callon Petroleum Co. ^(a)		1,323		25,587
Capstone Turbine Corp. ^(a)		6,692		15,258
CARBO Ceramics, Inc.		1,219		59,889
Carrizo Oil & Gas, Inc. ^(a)		1,201		37,603
Clayton Williams Energy, Inc. ^(a)		311		10,742
Complete Production Services ^(a)		1,696		40,093
Comstock Resources, Inc. ^(a)		2,784		83,130
Crosstex Energy, Inc.		574		54,576
Dawson Geophysical Co. ^(a)		490		15,077
Delek US Holdings, Inc. ^(a)		670		10,184
Delta Petroleum Corp. ^(a)		3,446		59,030
Dril-Quip, Inc. ^(a)		721		59,439
Edge Petroleum Corp. ^(a)		1,069		21,359
Encore Acquisition Co. ^(a)		3,487		93,556
Energy Partners Ltd. ^(a)		2,497		47,318
Evergreen Solar, Inc. ^(a)		4,352		56,489
Exco Resources, Inc. ^(a)		3,242		36,959
Exploration Co. ^(a)		1,900		20,254
FuelCell Energy, Inc. ^(a)		3,122		29,909
Gasco Energy, Inc. ^(a)		4,924		21,912
GeoGlobal Resources, Inc. ^(a)		1,952		9,545
Giant Industries, Inc. ^(a)		868		57,765
GMX Resources, Inc. ^(a)		523		16,171
Goodrich Petroleum Corp. ^(a)		814		23,109
Grey Wolf, Inc. ^(a)		12,382		95,341
Gulf Island Fabrication, Inc.		664		13,307
Gulfport Energy Corp. ^(a)		838		9,252
Hanover Compressor Co. ^(a)		6,660		125,075
Harvest Natural Resources, Inc. ^(a)		2,348		31,792
Hercules Offshore, Inc. ^(a)		1,320		46,200
Hornbeck Offshore Services, Inc. ^(a)		1,599		56,796
The Houston Exploration Co. ^(a)		1,857		113,630
Hydril ^(a)		1,185		93,046
Input/Output, Inc. ^(a)		4,536		42,865
International Coal Group Inc. ^(a)		7,399		53,199
James River Coal Co. ^(a)		1,085		28,742

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

Summit Mutual Funds, Inc. — Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE

ENERGY — 5.0% (Continued)
KCS Energy, Inc. ^(a)		3,228	$	95,872
KFX, Inc. ^(a)		4,494		68,668
Lufkin Industries, Inc.		882		52,417
Mariner Energy, Inc. ^(a)		4,769		87,607
Markwest Hydrocarbon, Inc.		341		8,440
Matrix Service Co. ^(a)		1,358		15,536
McMoRan Exploration Co. ^(a)		1,465		25,784
Meridian Resource Corp. ^(a)		5,610		19,635
Metretek Technologies, Inc. ^(a)		1,022		17,558
NATCO Group, Inc. ^(a)		952		38,270
Newpark Resources ^(a)		5,796		35,645
Oil States International, Inc. ^(a)		3,226		110,587
Pacific Ethanol, Inc. ^(a)		1,397		32,299
Parallel Petroleum Corp. ^(a)		2,123		52,459
Parker Drilling Co. ^(a)		7,012		50,346
Penn Virginia Corp.		1,154		80,642
Petrohawk Energy Corp. ^(a)		3,897		49,102
Petroleum Development Corp. ^(a)		1,034		38,982
Petroquest Energy, Inc. ^(a)		2,545		31,253
Pioneer Drilling Co. ^(a)		2,694		41,595
Plug Power, Inc. ^(a)		4,712		22,005
PrimeEnergy Corp. ^(a)		48		3,694
Quest Resource Corp. ^(a)		1,274		17,263
RAM Energy Resources, Inc. ^(a)		1,358		7,768
Remington Oil & Gas Corp. ^(a)		1,880		82,664
Rentech, Inc. ^(a)		9,001		41,855
Resource America, Inc.		992		18,898
Rosetta Resources, Inc. ^(a)		3,281		54,530
RPC, Inc.		1,433		34,793
Stone Energy Corp. ^(a)		1,776		82,673
Sulphco, Inc. ^(a)		2,266		16,225
Superior Well Services, Inc. ^(a)		711		17,704
Swift Energy Co. ^(a)		1,836		78,819
Syntroleum Corp. ^(a)		2,442		14,823
T-3 Energy Services, Inc. ^(a)		93		1,812
Toreador Resources Corp. ^(a)		926		26,048
Transmeridian Exploration, Inc. ^(a)		4,515		25,735
Transmontaigne, Inc. ^(a)		2,739		30,704
Trico Marine Service, Inc. ^(a)		772		26,248
Union Drilling, Inc. ^(a)		874		12,988
Universal Compression Holdings, Inc. ^(a)		1,964		123,673
Vaalco Energy, Inc. ^(a)		3,752		36,619
Veritas DGC, Inc. ^(a)		2,220		114,508
Warren Resources, Inc. ^(a)		3,474		49,887
Warrior Energy Service Corp. ^(a)		630		15,328
Western Refining, Inc.		1,406		30,341
Westmoreland Coal Co. ^(a)		438		10,389
W-H Energy Services, Inc. ^(a)		1,902		96,679
Whiting Petroleum Corp. ^(a)		2,245		93,998

				4,344,734

FINANCIAL — 21.7%
1st Source Corp.		738		24,967
21st Century Insurance Group		2,093		30,139
Aames Investment Corp.		2,580		12,874
Abington Cmnty Bancorp, Inc. ^(a)		454		6,801
Acadia Realty Trust		2,069		48,932
Accredited Home Lenders Holding Co. ^(a)		1,098		52,495
ACE Cash Express, Inc. ^(a)		709		20,752
Advance America Cash Advance Centers, Inc.		4,413		77,404
Advanta Corp. Class B		1,184		42,565
Advent Software, Inc. ^(a)		1,298		46,819
Affirmative Insurance Holdings, Inc.		540		8,451
Affordable Residential Communities ^(a)		2,225		23,919
Agree Realty Corp.		430		14,607
Alabama National Bancorporation		968		65,969
Alexander’s, Inc. ^(a)		110		29,894
Alexandria Real Estate Equities, Inc.		1,456		129,118
Alfa Corp.		2,107		34,892
Amcore Financial, Inc.		1,321		38,719
American Campus Communities, Inc.		1,001		24,875
American Equity Investment Life Holding Co.		3,623		38,621
American Financial Realty Trust ^(a)		8,437		81,670
American Home Mortgage Investment Corp.		2,708		99,817
American Physicians Capital, Inc. ^(a)		414		21,772
AmericanWest Bancorp		701		15,878
Ameris Bancorp		812		18,790
Anchor Bancorp Wisconsin, Inc.		1,473		44,440
Anthracite Capital, Inc.		3,704		45,041
Anworth Mortgage Asset Corp.		3,073		25,506
Apollo Investment Corp.		5,288		97,722
Arbor Realty Trust, Inc.		801		20,065
Ares Capital Corp.		2,369		40,107
Argonaut Group, Inc. ^(a)		1,950		58,578
Arrow Financial Corp.		658		18,049
Ashford Hospitality Trust, Inc.		2,928		36,951
Asset Acceptance Capital Corp. ^(a)		1,088		21,542
Asta Funding, Inc.		575		21,534
Baldwin & Lyons, Inc.		418		10,659
Bancfirst Corp.		434		19,422
The Bancorp, Inc. ^(a)		622		15,556
BancTrust Financial Group, Inc.		516		12,111
Bank Mutual Corp.		3,710		45,336
Bank of Granite Corp.		825		17,185
Bank of the Ozarks, Inc.		708		23,576
BankAtlantic Bancorp, Inc.		2,847		42,249
BankFinancial Corp.		1,589		27,490
Bankrate, Inc. ^(a)		698		26,356
BankUnited Financial Corp.		1,933		58,995
Banner Corp.		792		30,524
Berkshire Hills Bancorp, Inc.		467		16,569
BFC Financial Corp. ^(a)		1,572		10,878
BioMed Realty Trust, Inc.		3,621		108,413
The BISYS Group, Inc. ^(a)		7,845		107,477
Boston Private Financial Holdings, Inc.		2,141		59,734
Bristol West Holdings, Inc.		1,082		17,312
Brookline Bancorp, Inc.		4,003		55,121
Cadence Financial Corporation		602		13,407
Calamos Asset Management, Inc.		1,492		43,253
Camden National Corp.		424		16,918
Capital City Bank Group, Inc.		763		23,043
Capital Corp of the West		513		16,416
Capital Lease Funding, Inc.		1,866		21,291
Capital Southwest Corp.		153		15,981
Capital Title Group, Inc. ^(a)		1,676		12,352
Capital Trust, Inc. — Class A		748		26,644
Capitol Bancorp Ltd.		824		32,095
Cardinal Financial Corp.		1,582		18,383
Cascade Bancorp		1,458		41,568

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO


	SHARES		VALUE

FINANCIAL — 21.7% (Continued)
Cash America International, Inc.		1,898	$	60,736
Cass Information Systems, Inc.		252		12,270
Cathay General Bancorp		3,354		122,019
CBIZ, Inc. ^(a)		3,945		29,232
Cedar Shopping Centers, Inc.		1,687		24,833
Centennial Bank Holdings Inc. ^(a)		3,976		41,112
Center Financial Corp.		623		14,728
Centerstate Banks of Florida, Inc.		587		12,034
Central Pacific Financial Corp.		1,966		76,084
Charter Financial Corp		217		8,563
CharterMac		3,393		63,483
Chemical Financial Corp.		1,635		50,031
Chittenden Corp.		3,012		77,860
Citizens Banking Corp.		2,797		68,275
Citizens First Bancorp, Inc. ^(a)		549		14,664
City Bank		433		20,204
City Holding Co.		1,086		39,248
Clayton Holdings, Inc. ^(a)		561		7,321
Clifton Savings Bancorp, Inc.		838		9,076
CNA Surety Corp. ^(a)		977		16,883
Coastal Financial Corp.		997		13,001
CoBiz, Inc.		914		20,583
Cohen & Steers, Inc.		844		19,918
Columbia Bancorp/OR		644		16,145
Columbia Banking System, Inc.		977		36,520
Commerce Group, Inc. ^(a)		3,540		104,572
Commercial Capital Bancorp, Inc.		3,089		48,652
Community Bancorp, Inc./CA		325		13,751
Community Bancorp ^(a)		270		8,392
Community Bank System, Inc.		1,966		39,654
Community Banks, Inc.		1,369		35,594
Community Trust Bancorp, Inc.		928		32,415
CompuCredit Corp. ^(a)		1,346		51,740
Corporate Office Properties Trust		2,172		91,398
Correctional Properties Trust		688		17,028
Corus Bankshares, Inc.		2,332		61,052
Cousins Properties, Inc.		2,453		75,871
Crawford & Co.		1,424		10,224
Credit Acceptance Corp. ^(a)		635		17,234
Crescent Real Estate EQT Co. ^(a)		5,135		95,306
CVB Financial Corp.		3,812		59,696
Cybersource Corp. ^(a)		1,738		20,335
Darwin Professional Underwriters, Inc. ^(a)		340		6,004
Deerfield Triarc Capital Corp.		3,365		43,678
Delphi Financial Group		2,708		98,463
Deluxe Corp. ^(a)		3,342		58,418
DiamondRock Hospitality Co.		4,176		61,847
Digital Insight Corp. ^(a)		2,178		74,684
Digital Realty Trust, Inc.		1,198		29,579
Dime Community Bancshares		1,727		23,435
Direct General Corp.		887		15,008
Dollar Finl Corp. ^(a)		801		14,418
Donegal Group, Inc.		818		15,877
Doral Financial Corp.		5,580		35,768
Downey Financial Corp. ^(a)		1,370		92,955
Eastgroup Properties		1,372		64,045
Education Realty Trust, Inc.		1,695		28,222
eFunds Corp. ^(a)		2,944		64,915
Electro Rent Corp. ^(a)		1,123		17,990
EMC INS Group, Inc.		346		9,951
Enstar Group, Inc. ^(a)		176		16,225
Enterprise Financial Services Corp.		430		10,943
Entertainment Properties Trust		1,677		72,195
Equity Inns, Inc.		3,492		57,828
Equity Lifestyle Properties, Inc.		1,179		51,676
Equity One, Inc.		2,306		48,195
eSpeed, Inc. — Class A ^(a)		1,259		10,487
Euronet Worldwide, Inc. ^(a)		2,285		87,675
Extra Space Storage, Inc.		3,350		54,404
Farmers Capital Bank Corp.		413		13,526
FBL Financial Group, Inc.		811		26,276
Federal Agricultural Mortgage Corp.		714		19,778
FelCor Lodging Trust, Inc.		3,966		86,221
Fidelity Bankshares, Inc.		1,640		52,185
Fieldstone Investment Corp.		3,164		28,982
Financial Federal Corp.		1,630		45,330
First Bancorp Puerto Rico		4,444		41,329
First Bancorp/Troy NC		713		14,973
First Busey Corp.		871		17,829
First Cash Financial Services, Inc. ^(a)		1,596		31,521
First Charter Corp.		1,967		48,251
First Commonwealth Financial Corp.		4,555		57,848
First Community Bancorp/CA		1,280		75,622
First Community Bancshares Inc/VA		564		18,606
First Financial Bancorp		2,123		31,654
First Financial Bankshares, Inc.		1,349		49,292
First Financial Corp/IN		844		25,328
First Financial Holdings, Inc.		772		24,704
First Indiana Corp.		833		21,683
First Industrial Realty Trust, Inc.		2,787		105,739
First Merchants Corp.		1,157		28,127
First Midwest Bancorp Inc/IL		3,192		118,359
First Niagara Financial Group, Inc.		7,068		99,093
First Oak Brook Bancshares, Inc.		370		13,690
First Place Financial Corp/OH		935		21,514
First Potomac Realty Trust		1,280		38,131
First Regional Bancorp ^(a)		130		11,440
First Republic Bank		1,402		64,212
First South Bancorp, Inc.		405		13,863
First State Bancorp.		1,098		26,110
FirstFed Financial Corp. ^(a)		1,031		59,458
FirstMerit Corp. ^(a)		5,196		108,804
Flag Financial Corp. ^(a)		916		17,816
Flagstar Bancorp, Inc.		2,643		42,182
Flushing Financial Corp.		1,200		21,552
FNB Corp/Christiansburg VA		409		15,133
FNB Corp/Hermitage PA		3,649		57,545
FPIC Insurance Group, Inc. ^(a)		569		22,049
Franklin Bank Corp/Houston TX ^(a)		1,525		30,790
Franklin Street Properties Corp.		3,213		63,232
Fremont General Corp.		4,214		78,212
Friedman Billings Ramsey Group, Inc. ^(a)		9,568		104,961
Frontier Financial Corp.		1,636		55,608
Gamco Investors, Inc.		394		14,483
GB&T Bancshares, Inc.		791		17,212
Getty Realty Corp.		1,095		31,142
GFI Group, Inc. ^(a)		777		41,919
Glacier Bancorp, Inc.		2,023		59,213
Gladstone Capital Corp.		707		15,123

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

Summit Mutual Funds, Inc. — Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO				SCHEDULE OF INVESTMENTS


	SHARES		VALUE

FINANCIAL — 21.7% (Continued)
Gladstone Investment Corp.		1,033	$	15,495
Glenborough Realty Trust, Inc.		1,937		41,723
Glimcher Realty Trust		2,235		55,450
GMH Communities Trust		2,487		32,779
Gramercy Capital Corp.		996		25,796
Great American Financial Resources, Inc.		469		9,816
Great Southern Bancorp, Inc.		582		17,768
Greater Bay Bancorp		3,321		95,479
Greene County Bancshares, Inc.		489		15,139
Greenhill & Co, Inc.		1,148		69,752
H & E Equipment Services, Inc. ^(a)		783		23,059
Hancock Holding Co.		1,734		97,104
Hanmi Financial Corp.		2,492		48,444
Harbor Florida Bancshares, Inc.		1,299		48,245
Harleysville Group, Inc.		829		26,296
Harleysville National Corp.		1,789		37,945
Harris & Harris Group, Inc. ^(a)		1,249		13,789
Healthcare Realty Trust, Inc. ^(a)		3,114		99,181
HealthExtras, Inc. ^(a)		1,769		53,459
Heartland Financial USA, Inc.		944		25,158
Heritage Commerce Corp.		744		18,444
Heritage Property Investment Trust		1,788		62,437
Hersha Hospitality Trust		1,816		16,871
Highland Hospitality Corp.		3,839		54,053
Highwoods Properties, Inc.		3,485		126,087
Hilb Rogal & Hobbs Co.		2,357		87,845
Home Federal Bancorp, Inc. ^(a)		405		5,532
Home Properties, Inc.		2,238		124,231
HomeBanc Corp.		3,660		29,060
Horace Mann Educators Corp.		2,787		47,240
Horizon Financial Corp.		564		15,471
Huron Consulting Group, Inc. ^(a)		1,134		39,792
Hypercom Corp. ^(a)		3,607		33,725
IBERIABANK Corp.		533		30,669
IMPAC Mortgage Holdings, Inc.		4,880		54,558
Independence Holding Co.		259		5,804
Independent Bank Corp. Massachusetts		963		31,269
Independent Bank Corp. Michigan		1,440		37,872
Infinity Property & Casualty Corp.		1,291		52,931
Inland Real Estate Corp.		4,374		65,085
Innkeepers USA Trust		2,778		48,004
Integra Bank Corp.		960		20,880
Interactive Data Corp. ^(a)		2,335		46,910
Interchange Financial Services		1,123		25,267
International Bancshares Corp. ^(a)		3,031		83,292
International Securities Exchange, Inc.		2,478		94,337
Interpool, Inc.		780		17,332
Intervest Bancshares Corp. ^(a)		316		12,798
INVESTools, Inc. ^(a)		2,944		23,375
Investors Bancorp, Inc. ^(a)		3,450		46,747
Investors Real Estate Trust		2,789		25,185
Irwin Financial Corp.		1,135		22,008
ITLA Capital Corp.		319		16,773
Jack Henry & Associates, Inc.		5,179		101,819
James River Group, Inc. ^(a)		594		14,791
Jer Investors Trust, Inc.		1,673		26,015
John H Harland Co.		1,780		77,430
Kansas City Life Insurance Co.		202		8,518
Kearny Financial Corp.		1,317		19,492
Kite Realty Group Trust		1,799		28,046
KKR Financial Corp. ^(a)		5,235		108,940
KNBT Bancorp, Inc.		1,930		31,884
Knight Capital Group, Inc. ^(a)		6,963		106,046
Kronos, Inc. ^(a)		2,080		75,317
LaBranche & Co, Inc. ^(a)		3,496		42,337
Lakeland Bancorp, Inc.		1,141		17,879
Lakeland Financial Corp.		774		18,800
LandAmerica Financial Group, Inc.		1,128		72,869
LaSalle Hotel Properties		2,462		113,991
Lexington Corporate Properties Trust		3,356		72,490
LTC Properties, Inc.		1,504		33,614
Luminent Mortgage Capital, Inc.		2,633		24,382
Macatawa Bank Corp.		896		20,946
MAF Bancorp, Inc.		2,124		90,992
Maguire Properties, Inc.		2,286		80,399
MainSource Financial Group, Inc.		874		15,234
MarketAxess Holdings, Inc. ^(a)		1,679		18,486
Marlin Business Services, Inc. ^(a)		771		17,394
MB Financial Corp.		1,424		50,353
MBT Financial Corp.		928		14,848
MCG Capital Corp.		3,429		54,521
Mcgrath Rentcorp		1,283		35,680
Meadowbrook Insurance Group, Inc. ^(a)		1,639		13,636
Medallion Financial Corp. ^(a)		956		12,390
Medical Properties Trust, Inc.		2,609		28,803
Mercantile Bank Corp.		446		17,773
MetroCorp Bancshares, Inc.		302		8,843
MFA Mortgage Investments, Inc.		5,338		36,725
Mid-America Apartment Communities, Inc.		1,539		85,799
The Midland Co.		672		25,523
Mid-State Bancshares		1,485		41,580
Midwest Banc Holdings, Inc.		1,091		24,275
The Mills Corp. ^(a)		3,687		98,627
Morningstar, Inc. ^(a)		916		37,996
MortgageIT Holdings, Inc.		1,630		19,658
MVC Capital, Inc.		1,114		14,972
Nara Bancorp, Inc.		1,213		22,744
NASB Financial, Inc.		171		5,775
National Financial Partners Corp.		2,326		103,065
National Health Investors, Inc.		1,518		40,819
National Interstate Corp.		1,032		27,988
National Penn Bancshares, Inc.		3,031		60,201
National Retail Properties, Inc.		3,600		71,820
National Western Life Insurance Co.		124		29,717
Nationwide Health Properties, Inc.		4,761		107,170
Navigators Group, Inc. ^(a)		850		37,247
NBT Bancorp, Inc.		2,145		49,828
NCO Group, Inc. ^(a)		2,080		54,995
Netbank, Inc.		2,995		19,857
NewAlliance Bancshares, Inc.		7,402		105,923
Newcastle Investment Corp.		2,838		71,858
Newkirk Realty Trust, Inc.		1,262		21,908
NGP Capital Resources Co.		1,087		15,903
Northern Empire Bancshares ^(a)		462		11,088
NorthStar Realty Finance Corp.		2,756		33,100
Northwest Bancorp, Inc.		1,224		32,436
Novastar Financial, Inc.		2,139		67,614
NYMAGIC, Inc. ^(a)		377		10,952

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO


	SHARES		VALUE

FINANCIAL — 21.7% (Continued)
OceanFirst Financial Corp.		498	$	11,066
Ocwen Financial Corp. ^(a)		2,147		27,288
Odyssey Re Holdings Corp.		788		20,764
Ohio Casualty Corp.		4,062		120,763
Old National Bancorp		4,438		88,627
Old Second Bancorp, Inc.		842		26,102
Omega Financial Corp.		786		24,610
Omega Healthcare Investors, Inc.		3,618		47,830
optionsXpress Holdings, Inc.		1,286		29,977
Oriental Financial Group		1,323		16,881
Pacific Capital Bancorp		2,970		92,426
Park National Corp.		760		75,096
Parkway Properties Inc.		878		39,949
Partners Trust Financial Group, Inc.		3,240		36,968
Pennfed Financial Services, Inc.		504		9,400
Pennsylvania Real Estate Investment Trust		2,279		92,003
Penson Worldwide, Inc. ^(a)		486		8,364
Peoples Bancorp Inc.		525		15,666
PFF Bancorp, Inc.		1,595		52,890
The Phoenix Cos Inc.		7,329		103,192
Pico Holdings, Inc. ^(a)		535		17,254
Pinnacle Financial Partners, Inc. ^(a)		998		30,369
Piper Jaffray Companies, Inc. ^(a)		1,236		75,656
Placer Sierra Bancshares		763		17,694
PMA Capital Corp. ^(a)		1,991		20,507
Portfolio Recovery Associates, Inc. ^(a)		973		44,466
Post Properties, Inc.		2,723		123,461
Preferred Bank		230		12,330
PremierWest Bancorp		879		12,682
Presidential Life Corp.		1,278		31,413
PrivateBancorp, Inc.		1,035		42,859
ProAssurance Corp. ^(a)		2,032		97,902
Prosperity Bancshares, Inc.		1,515		49,828
Provident Bankshares Corp.		2,138		77,802
Provident Financial Services, Inc.		4,369		78,424
Provident New York Bancorp		2,450		32,389
PS Business Parks, Inc.		1,027		60,593
QC Holdings, Inc. ^(a)		410		5,539
RAIT Investment Trust		1,787		52,180
Ramco-Gershenson Properties		1,097		29,542
Realty Income Corp. ^(a)		5,412		118,523
Redwood Trust, Inc.		1,227		59,914
Renasant Corp.		578		23,322
Republic Bancorp Inc./KY		415		8,549
Republic Bancorp Inc./MI		4,997		61,913
Republic Property Trust		1,563		15,442
Resource Capital Corporation		233		2,999
Rewards Network, Inc. ^(a)		1,726		14,101
R-G Financial Corp.		1,803		15,488
RLI Corp.		1,459		70,295
Rockville Financial, Inc. ^(a)		490		7,213
Royal Bancshares of Pennsylvania		252		6,119
S&T Bancorp, Inc.		1,725		57,322
Sl Corp. ^(a)		4,555		21,864
Safety Insurance Group, Inc.		927		44,079
Sanders Morris Harris Group, Inc.		793		11,982
Sandy Spring Bancorp, Inc.		914		32,959
Santander BanCorp		295		7,263
Saul Centers, Inc.		613		24,998
Saxon Cap Inc.		3,235		37,008
SCBT Financial Corp.		541		19,287
SCPIE Holdings, Inc. ^(a)		655		15,229
Seabright Insurance Holdings, Inc. ^(a)		1,036		16,690
Seacoast Banking Corp of Florida		763		20,319
Security Bank Corp.		912		20,310
Selective Insurance Group		1,837		102,633
Semtech Corp. ^(a)		4,781		69,085
Senior Housing Properties Trust		4,163		74,559
Shore Bancshares, Inc. ^(a)		545		14,786
Sierra Bancorp		300		7,866
Signature Bank ^(a)		1,909		61,813
Simmons First National Corp.		896		25,993
Sizeler Property Investors		1,152		18,501
Smithtown Bancorp, Inc. ^(a)		507		12,249
Sotheby’s Holdings ^(a)		3,937		103,346
Sound Federal Bancorp, Inc.		696		14,470
Southside Bancshares, Inc.		645		14,396
Southwest Bancorp Inc.		848		21,624
Sovran Self Storage, Inc.		1,029		52,263
Spirit Finance Corp.		5,199		58,541
State Auto Financial Corp.		874		28,440
State National Bancshares, Inc.		685		26,105
Sterling Bancorp		1,204		23,478
Sterling Bancshares, Inc.		2,931		54,956
Sterling Financial Corp./PA		1,659		36,332
Sterling Financial Corp./WA		2,159		65,871
Stewart Information Services Corp.		1,067		38,743
Stifel Financial Corp. ^(a)		774		27,330
Strategic Hotels & Resorts, Inc.		4,766		98,847
Suffolk Bancorp		666		21,811
Summit Bancshares Inc. (TX)		570		12,090
Sun Bancorp Inc. ^(a)		777		12,618
Sun Communities, Inc.		1,011		32,888
Sunstone Hotel Investors, Inc.		3,773		109,643
Superior Bancorp ^(a)		855		9,405
Susquehanna Bancshares, Inc.		3,027		72,345
SVB Financial Group ^(a)		2,215		100,694
SWS Group, Inc.		959		23,131
SY Bancorp, Inc.		789		21,682
Tanger Factory Outlet Centrs		1,990		64,416
Taylor Capital Group, Inc.		389		15,875
Technology Investment Capital Corp.		1,210		17,726
Texas Capital Bancshares, Inc. ^(a)		1,449		33,762
Texas Regional Bancshares, Inc. Class A		2,935		111,295
Texas United Bancshares, Inc. ^(a)		603		16,974
TheStreet.Com Inc. ^(a)		1,196		15,333
Thomas Weisel Partners Group, Inc. ^(a)		346		6,577
TierOne Corp.		1,134		38,295
TNS, Inc. ^(a)		1,569		32,463
Tompkins Trustco, Inc.		390		16,770
Tower Group, Inc.		1,045		31,611
TradeStation Group, Inc. ^(a)		1,672		21,184
Triad Guaranty, Inc. ^(a)		750		36,660
Trico Bancshares		757		20,727
Trustco Bank Corp NY		4,884		53,822
Trustmark Corp.		3,065		94,923
Trustreet Properties, Inc.		4,299		56,704
UCBH Holdings, Inc.		5,935		98,165

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

Summit Mutual Funds, Inc. — Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE

FINANCIAL — 21.7% (Continued)
UMB Financial Corp.		1,950	$	65,013
Umpqua Holdings Corp.		3,577		91,750
Union Bankshares Corp.		489		21,095
United Bankshares, Inc.		2,334		85,494
United Community Financial Corp.		1,754		21,048
United Fire & Casualty Co.		1,265		38,114
United PanAm Financial Corp. ^(a)		668		20,307
United Security Bancshares, Inc.		320		9,466
United Security Bancshares/CA ^(a)		163		866
Universal American Financial Corp. ^(a)		2,480		32,612
Universal Health Realty Income Trust		733		22,980
Univest Corporation of Pennsylvania		719		19,859
Urstadt Biddle Properties, Inc.		1,271		20,705
USB Holding Co., Inc.		727		16,358
USI Holdings Corp. ^(a)		2,937		39,385
U-Store-It Trust		2,851		53,770
Value Line, Inc.		71		3,032
Vineyard National Bancorp		564		15,172
Virginia Commerce Bancorp ^(a)		890		21,271
Virginia Financial Group, Inc.		394		16,635
Waddell & Reed Financial, Inc.		5,520		113,491
Washington Real Estate Investment Trust		2,630		96,521
Washington Trust Bancorp, Inc.		745		20,651
Wauwatosa Holdings, Inc. ^(a)		668		11,396
WesBanco, Inc.		1,471		45,586
West Bancorporation, Inc.		1,047		19,547
West Coast Bancorp		923		27,201
Westamerica Bancorporation		2,125		104,061
Western Alliance Bancorp ^(a)		854		29,702
Westfield Financial, Inc.		245		7,105
Willow Grove Bancorp Inc.		970		15,433
Wilshire Bancorp, Inc.		961		17,317
Windrose Medical Properties Trust ^(a)		1,326		19,360
Winston Hotels, Inc.		1,714		20,997
Winthrop Realty Trust ^(a)		1,571		9,332
Wintrust Financial Corp.		1,521		77,343
World Acceptance Corp. ^(a)		1,185		42,091
Wright Express Corp. ^(a)		2,509		72,109
WSFS Financial Corp.		324		19,910
Yardville National Bancorp		469		16,757
Zenith National Insurance Corp.		2,406		95,446

				18,846,787

HEALTH CARE — 10.9%
Abaxis, Inc. ^(a)		1,235		27,627
Abiomed, Inc. ^(a)		1,187		15,395
Acadia Pharmaceuticals, Inc. ^(a)		1,329		11,217
Adams Respiratory Therapeutics ^(a)		1,976		88,169
Adeza Biomedical Corp. ^(a)		980		13,740
Adolor Corp. ^(a)		2,856		71,429
Advanced Magnetics, Inc. ^(a)		520		15,714
Adventrx Pharmaceuticals, Inc. ^(a)		3,542		11,228
Affymetrix, Inc. ^(a)		4,394		112,486
Air Methods Corp. ^(a)		676		17,698
Akorn, Inc. ^(a)		2,900		11,542
Albany Molecular Research, Inc. ^(a)		1,637		17,483
Alexion Pharmaceuticals, Inc. ^(a)		1,987		71,770
Align Technology, Inc. ^(a)		3,982		29,427
Alkermes, Inc. ^(a)		5,847		110,625
Alliance Imaging, Inc. ^(a)		857		5,485
Allscripts Healthcare Solutions, Inc. ^(a)		3,014		52,896
Alnylam Pharmaceuticals, Inc. ^(a)		2,083		31,412
Alpharma, Inc.		2,472		59,427
Altus Pharmaceuticals, Inc. ^(a)		411		7,583
Amedisys, Inc. ^(a)		965		36,573
American Medical Systems Holdings, Inc. ^(a)		4,493		74,808
American Oriental Bioengineering, Inc. ^(a)		2,909		16,087
American Retirement Corp. ^(a)		2,299		75,338
AMERIGROUP Corp. ^(a)		3,366		104,481
Amsurg Corp. ^(a)		1,911		43,475
Anadys Pharmaceuticals, Inc. ^(a)		1,854		5,414
Analogic Corp.		855		39,852
Andrx Corp. ^(a)		4,742		109,967
Angiodynamics, Inc. ^(a)		797		21,559
Applera Corp — Celera Genomics Group ^(a)		4,782		61,927
Apria Healthcare Group, Inc. ^(a)		2,950		55,755
Arena Pharmaceuticals, Inc. ^(a)		2,936		33,999
Ariad Pharmaceuticals, Inc. ^(a)		3,918		17,670
Array Biopharma, Inc. ^(a)		2,544		21,878
Arrow International, Inc.		1,320		43,388
Arthrocare Corp. ^(a)		1,692		71,081
Aspect Medical Systems, Inc. ^(a)		1,015		17,702
Atherogenics, Inc. ^(a)		2,353		30,707
Auxilium Pharmaceuticals, Inc. ^(a)		1,412		10,985
Avanir Pharmaceuticals ^(a)		1,912		13,078
AVI BioPharma, Inc. ^(a)		3,272		12,270
Bentley Pharmaceuticals, Inc. ^(a)		1,138		12,472
BioCryst Pharmaceuticals, Inc. ^(a)		1,496		21,438
Bioenvision, Inc. ^(a)		2,624		13,986
BioMarin Pharmaceuticals, Inc. ^(a)		5,438		78,144
Bio-Rad Laboratories, Inc. ^(a)		1,213		78,772
Bio-Reference Labs, Inc. ^(a)		562		12,229
Biosite, Inc. ^(a)		1,055		48,171
Bradley Pharmaceuticals, Inc. ^(a)		947		9,659
Bruker BioSciences Corp. ^(a)		2,431		13,030
Candela Corp. ^(a)		1,540		24,424
Capital Senior Living Corp. ^(a)		1,416		14,556
Caraco Pharmaceutical Laboratories Ltd. ^(a)		534		4,886
Cell Genesys, Inc. ^(a)		2,951		14,814
Centene Corp. ^(a)		2,710		63,766
Cepheid, Inc. ^(a)		3,403		33,043
Cerus Corp. ^(a)		1,808		12,891
Chattem, Inc. ^(a)		1,110		33,711
Coley Pharmaceutical Group, Inc. ^(a)		1,167		13,479
Combinatorx, Inc. ^(a)		1,604		14,099
Computer Programs & Systems, Inc.		609		24,336
Conceptus, Inc. ^(a)		1,484		20,242
Conmed Corp. ^(a)		1,905		39,433
Connetics Corp. ^(a)		2,171		25,531
Conor Medsystems, Inc. ^(a)		1,763		48,641
Corvel Corp. ^(a)		341		8,525
Cotherix, Inc. ^(a)		884		7,611
Cubist Pharmaceuticals, Inc. ^(a)		3,449		86,846
CV Therapeutics, Inc. ^(a)		2,709		37,845
Cyberonics, Inc. ^(a)		1,381		29,443
Cypress Bioscience, Inc. ^(a)		2,001		12,286
Cytokinetics, Inc. ^(a)		1,671		10,511
Datascope Corp.		730		22,513
deCODE genetics, Inc. ^(a)		3,539		21,906

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO


	SHARES		VALUE
HEALTH CARE — 10.9% (Continued)
Dendreon Corp. ^(a)		4,514	$	21,848
Depomed, Inc. ^(a)		2,395		14,059
Dexcom, Inc. ^(a)		1,096		14,884
Diagnostic Products Corp.		1,618		94,119
Digene Corp. ^(a)		997		38,624
Diversa Corp. ^(a)		1,553		15,002
DJ Orthopedics, Inc. ^(a)		1,407		51,820
Durect Corp. ^(a)		2,734		10,581
Eclipsys Corp. ^(a)		2,945		53,481
Emeritus Corp. ^(a)		322		6,037
Emisphere Technologies, Inc. ^(a)		1,551		13,230
Encore Medical Corp. ^(a)		3,539		17,023
Encysive Pharmaceuticals, Inc. ^(a)		3,771		26,133
Enzo Biochem, Inc. ^(a)		1,774		26,752
Enzon Pharmaceuticals, Inc. ^(a)		2,845		21,451
eResearch Technology, Inc. ^(a)		3,290		29,939
ev3, Inc. ^(a)		958		14,188
Exelixis, Inc. ^(a)		5,378		54,049
Five Star Quality Care, Inc. ^(a)		2,056		22,760
Foxhollow Technologies, Inc. ^(a)		1,215		33,194
Genesis HealthCare Corp. ^(a)		1,237		58,597
Genitope Corp. ^(a)		1,829		11,559
Genomic Health, Inc. ^(a)		810		9,534
Genta, Inc. ^(a)		8,707		14,279
Gentiva Health Services, Inc. ^(a)		1,662		26,642
Geron Corp. ^(a)		4,141		28,573
Greatbatch, Inc. ^(a)		1,399		33,016
GTx, Inc. ^(a)		565		5,141
Haemonetics Corp./Mass ^(a)		1,679		78,090
Hana Biosciences, Inc. ^(a)		1,870		16,961
Healthcare Services Group		1,768		37,040
Healthspring, Inc. ^(a)		1,224		22,950
HealthTronics, Inc. ^(a)		2,108		16,126
Healthways, Inc. ^(a)		2,070		108,965
Hi-Tech Pharmacal Co., Inc. ^(a)		435		7,208
Hologic, Inc. ^(a)		2,970		146,599
Horizon Health Corp. ^(a)		978		20,421
Human Genome Sciences, Inc. ^(a)		8,463		90,554
Hythiam, Inc. ^(a)		1,706		11,891
ICOS Corp. ^(a)		4,141		91,061
ICU Medical, Inc. ^(a)		863		36,453
Idenix Pharmaceuticals, Inc. ^(a)		1,608		15,115
I-Flow Corp. ^(a)		1,245		13,471
Illumina, Inc. ^(a)		2,716		80,557
Immucor, Inc. ^(a)		4,421		85,016
Incyte Corp. ^(a)		5,412		24,895
Indevus Pharmaceuticals, Inc. ^(a)		3,101		16,962
Integra LifeSciences Holdings Corp. ^(a)		1,253		48,629
InterMune, Inc. ^(a)		1,620		26,649
Intralase Corp. ^(a)		1,396		23,369
Invacare Corp.		1,979		49,238
inVentiv Health Inc. ^(a)		1,781		51,257
Inverness Medical Innovations, Inc. ^(a)		1,802		50,870
IRIS International, Inc. ^(a)		1,088		14,318
Isis Pharmaceuticals, Inc. ^(a)		4,691		28,381
Kendle International, Inc. ^(a)		799		29,347
Kensey Nash Corp. ^(a)		753		22,213
Keryx Biopharmaceuticals, Inc. ^(a)		2,808		39,874
Kindred Healthcare, Inc. ^(a)		2,262		58,812
KV Pharmaceutical Co. ^(a)		2,240		41,798
Kyphon, Inc. ^(a)		2,880		110,477
Landauer, Inc.		495		23,710
Laserscope ^(a)		1,239		38,174
LCA-Vision, Inc.		1,269		67,143
Lexicon Genetics, Inc. ^(a)		4,127		18,118
LHC Group, Inc. ^(a)		722		14,382
Lifecell Corp. ^(a)		2,088		64,561
Luminex Corp. ^(a)		2,083		36,223
Magellan Health Services, Inc. ^(a)		2,410		109,197
Mannkind Corp. ^(a)		1,643		35,012
Martek Biosciences Corp. ^(a)		2,040		59,058
Matria Healthcare, Inc. ^(a)		1,238		26,518
Maxygen, Inc. ^(a)		1,653		12,364
Medarex, Inc. ^(a)		7,902		75,938
Medcath Corp. ^(a)		405		7,630
Medical Action Industries, Inc. ^(a)		598		13,210
Medicines Co. ^(a)		3,205		62,658
Medicis Pharmaceutical		3,522		84,528
Mentor Corp.		2,366		102,921
Meridian Bioscience, Inc.		1,368		34,132
Merit Medical Systems, Inc. ^(a)		1,725		23,736
Metabasis Therapeutics, Inc. ^(a)		1,339		10,217
MGI Pharma, Inc. ^(a)		4,981		107,091
Molecular Devices Corp. ^(a)		1,058		32,332
Molina Healthcare, Inc. ^(a)		621		23,629
Momenta Pharmaceuticals, Inc. ^(a)		1,409		17,908
Monogram Biosciences, Inc. ^(a)		8,478		16,786
MWI Veterinary Supply, Inc. ^(a)		263		9,581
Myogen, Inc. ^(a)		2,766		80,214
Myriad Genetics, Inc. ^(a)		2,434		61,458
Nabi Biopharmaceuticals ^(a)		3,819		21,921
Nastech Pharmaceutical, Inc. ^(a)		1,407		22,231
National Healthcare Corp.		351		15,637
Natus Medical, Inc. ^(a)		1,212		11,987
Nektar Therapeutics ^(a)		5,794		106,262
Neurocrine Biosciences, Inc. ^(a)		2,290		24,274
Neurometrix, Inc. ^(a)		812		24,734
New River Pharmaceuticals, Inc. ^(a)		1,033		29,440
Nighthawk Radiology Holdings, Inc. ^(a)		368		6,602
Northfield Laboratories, Inc. ^(a)		1,521		15,043
Northstar Neuroscience, Inc. ^(a)		702		7,287
Novavax, Inc. ^(a)		4,001		20,165
Noven Pharmaceuticals, Inc. ^(a)		1,532		27,423
NPS Pharmaceuticals, Inc. ^(a)		2,978		14,533
NuVasive, Inc. ^(a)		2,157		39,322
Nuvelo, Inc. ^(a)		3,332		55,478
Nxstage Medical, Inc. ^(a)		788		6,879
Odyssey HealthCare, Inc. ^(a)		2,239		39,339
Omnicell, Inc. ^(a)		1,770		24,461
Onyx Pharmaceuticals, Inc. ^(a)		2,520		42,412
Option Care, Inc.		1,352		16,197
OraSure Technologies, Inc. ^(a)		2,895		27,560
OSI Pharmaceuticals, Inc. ^(a)		3,707		122,183
Owens & Minor, Inc.		2,477		70,842
Pain Therapeutics, Inc. ^(a)		2,316		19,339
Palomar Medical Technologies, Inc. ^(a)		1,052		48,003
Panacos Pharmaceuticals, Inc. ^(a)		3,280		18,106
Par Pharmaceutical Cos., Inc. ^(a)		2,135		39,412

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

Summit Mutual Funds, Inc. — Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE
HEALTH CARE — 10.9% (Continued)
Parexel International Corp. ^(a)		1,697	$	48,958
Penwest Pharmaceuticals Co. ^(a)		1,479		32,287
Peregrine Pharmaceuticals, Inc. ^(a)		11,419		18,156
Perrigo Co.		5,060		81,466
Per-Se Technologies, Inc. ^(a)		2,178		54,842
Pharmion Corp. ^(a)		1,590		27,078
Phase Forward, Inc. ^(a)		2,210		25,459
PolyMedica Corp.		1,542		55,450
Pozen, Inc. ^(a)		1,549		10,905
PRA International ^(a)		1,164		25,922
Progenics Pharmaceuticals, Inc. ^(a)		1,315		31,639
PSS World Medical, Inc. ^(a)		4,188		73,918
Psychiatric Solutions, Inc. ^(a)		3,301		94,607
Quality Systems, Inc.		940		34,611
Quidel Corp. ^(a)		1,958		18,601
Radiation Therapy Services, Inc. ^(a)		690		18,568
Regeneron Pharmaceuticals, Inc. ^(a)		2,968		38,050
RehabCare Group, Inc. ^(a)		1,045		18,162
Renovis, Inc. ^(a)		1,359		20,806
Res-Care, Inc. ^(a)		1,377		27,540
Rigel Pharmaceuticals, Inc. ^(a)		1,549		15,072
Salix Pharmaceuticals, Ltd. ^(a)		2,942		36,187
Sangamo Biosciences, Inc. ^(a)		1,881		11,098
Santarus, Inc. ^(a)		2,994		19,910
Savient Pharmaceuticals, Inc. ^(a)		3,908		20,517
Sciele Pharma, Inc. ^(a)		1,789		41,487
Senomyx, Inc. ^(a)		1,942		28,023
Serologicals Corp. ^(a)		2,170		68,225
SFBC International, Inc. ^(a)		1,141		17,298
Sirna Therapeutics, Inc. ^(a)		2,618		14,923
Sirona Dental Systems, Inc. ^(a)		1,147		45,444
Solexa, Inc. ^(a)		1,533		13,030
Somaxon Pharmaceuticals, Inc. ^(a)		288		4,496
SonoSite, Inc. ^(a)		962		37,556
Spectranetics Corp. ^(a)		1,992		21,354
Stereotaxis, Inc. ^(a)		1,526		16,466
Steris Corp.		4,507		103,030
Sun Healthcare Group, Inc. ^(a)		1,507		13,096
Sunrise Senior Living, Inc. ^(a)		2,893		79,991
SuperGen, Inc. ^(a)		3,316		12,037
SurModics, Inc. ^(a)		942		34,016
Symbion, Inc. ^(a)		1,080		22,421
Symmetry Medical, Inc. ^(a)		2,272		34,989
Tanox, Inc. ^(a)		1,588		21,962
Telik, Inc. ^(a)		3,375		55,687
Thermogenesis ^(a)		3,497		14,408
Thoratec Corp. ^(a)		3,397		47,116
Trimeris, Inc. ^(a)		1,107		12,719
TriPath Imaging, Inc. ^(a)		1,961		12,982
United Surgical Partners International, Inc. ^(a)		2,801		84,226
United Therapeutics Corp. ^(a)		1,467		84,749
Valeant Pharmaceuticals International ^(a)		6,045		102,281
Ventana Medical Systems ^(a)		1,878		88,604
Viasys Healthcare, Inc. ^(a)		2,027		51,891
Viropharma, Inc. ^(a)		4,467		38,506
Visicu, Inc. ^(a)		449		7,925
VistaCare, Inc. ^(a)		689		8,337
Vital Images, Inc. ^(a)		818		20,205
Vital Signs, Inc.		445		22,041
West Pharmaceutical Services, Inc.		2,013		73,032
Wright Medical Group, Inc. ^(a)		2,228		46,632
Xenoport, Inc. ^(a)		1,311		23,742
Young Innovations, Inc.		265		9,336
Zoll Medical Corp. ^(a)		530		17,363
Zymogenetics, Inc. ^(a)		2,443		46,344

				9,438,948


INDUSTRIAL — 0.1%
RBC Bearings, Inc. ^(a)		1,332		30,236
Waste Services Inc. ^(a)		1,807		16,245

				46,481


MATERIALS — 8.7%
AAON, Inc.		485		12,445
Acuity Brands, Inc.		2,858		111,205
AEP Industries, Inc. ^(a)		466		15,574
AK Steel Holding Corp. ^(a)		7,118		98,442
Albany International Corp.		1,714		72,656
Aleris International, Inc. ^(a)		1,993		91,379
Alico, Inc.		207		11,408
AM Castle & Co.		656		21,156
AMCOL International Corp.		1,349		35,546
American Vanguard Corp.		934		14,458
Ameron International Corp.		469		31,432
Ampco-Pittsburgh Corp. ^(a)		468		13,408
Amrep Corp. ^(a)		109		5,921
Andersons, Inc.		740		30,791
Apogee Enterprises, Inc.		1,802		26,489
Aptargroup, Inc. ^(a)		2,289		113,557
Arch Chemicals, Inc.		1,531		55,193
Avatar Holdings, Inc. ^(a)		320		18,230
Balchem Corp.		722		16,245
Barnes Group, Inc.		2,376		47,401
Beacon Roofing Supply, Inc. ^(a)		2,852		62,762
Bluegreen Corp. ^(a)		1,293		14,818
BlueLinx Holdings, Inc.		540		7,036
Bowater, Inc.		3,615		82,241
Brady Corp.		2,931		107,978
Brookfield Homes Corp.		809		26,657
Brush Engineered Materials, Inc. ^(a)		1,200		25,020
Buckeye Technologies, Inc. ^(a)		1,996		15,249
Building Material Holding Corp.		1,733		48,299
Cabot Microelectronics Corp. ^(a)		1,600		48,496
Calgon Carbon Corp.		2,111		12,856
California Coastal Communities, Inc. ^(a)		662		21,184
Cambrex Corp.		1,710		35,619
Caraustar Industries, Inc. ^(a)		1,877		16,893
Century Aluminum Co. ^(a)		1,470		52,464
Ceradyne, Inc. ^(a)		1,650		81,658
CF Industries Holdings, Inc.		3,584		51,108
Chaparral Steel Company ^(a)		1,472		106,013
Chesapeake Corp.		1,230		20,184
China BAK Battery, Inc. ^(a)		1,764		15,012
CIRCOR International, Inc.		978		29,819
Clarcor, Inc.		3,341		99,528
Clean Harbors, Inc. ^(a)		1,022		41,197
Cleveland-Cliffs, Inc.		1,420		112,592
Coeur d’Alene Mines Corp. ^(a)		18,006		86,609
Comfort Systems USA, Inc.		2,467		35,253

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO


	SHARES		VALUE
MATERIALS — 8.7% (Continued)
Compass Minerals International, Inc.		2,083	$	51,971
CompX International, Inc.		107		1,915
Consolidated-Tomoka Land Co.		314		17,314
Delta & Pine Land Co.		2,225		65,415
Deltic Timber Corp.		557		31,398
DHB Industries, Inc. ^(a)		1,674		2,628
Drew Industries, Inc. ^(a)		1,206		39,074
Dycom Industries, Inc. ^(a)		2,937		62,529
Dynamic Materials Corp.		768		25,905
ElkCorp		1,257		34,907
EMCOR Group, Inc. ^(a)		1,919		93,398
Encore Wire Corp. ^(a)		1,515		54,449
Energy Conversion Devices, Inc. ^(a)		2,543		92,641
EnerSys ^(a)		3,029		63,306
ENGlobal Corp. ^(a)		1,050		8,180
Ennis, Inc.		1,650		32,472
Ferro Corp.		2,723		43,459
First Acceptance Corp. ^(a)		1,056		12,440
Georgia Gulf Corp.		2,130		53,293
Gibraltar Industries, Inc.		1,564		45,356
Glatfelter		2,743		43,531
Gold Kist, Inc. ^(a)		3,330		44,522
Goodman Global, Inc. ^(a)		1,535		23,301
GrafTech International Ltd. ^(a)		6,355		36,859
Granite Construction, Inc.		2,162		97,874
Graphic Packaging Corp. ^(a)		4,254		16,123
Greif, Inc.		1,073		80,432
Griffon Corp. ^(a)		1,891		49,355
HB Fuller Co.		1,865		81,258
Hecla Mining Co. ^(a)		7,671		40,273
Hercules, Inc. ^(a)		7,318		111,673
Hexcel Corp. ^(a)		6,079		95,501
Housevalues, Inc. ^(a)		936		6,486
Infrasource Services, Inc. ^(a)		1,738		31,649
Innospec, Inc.		779		19,802
Insituform Technologies, Inc. ^(a)		1,741		39,851
Insteel Industries, Inc. ^(a)		908		21,974
Integrated Electrical Services, Inc. ^(a)		998		17,435
Interface, Inc. ^(a)		2,958		33,869
Interline Brands, Inc. ^(a)		1,766		41,289
Jacuzzi Brands, Inc. ^(a)		4,969		43,727
Kaydon Corp.		1,830		68,277
Koppers Holdings, Inc.		553		11,054
Kronos Worldwide, Inc.		194		5,674
The Lamson & Sessions Co. ^(a)		904		25,637
Layne Christensen Co. ^(a)		716		20,299
LB Foster Co. — Class A ^(a)		665		16,140
Lone Star Technologies ^(a)		1,929		104,205
Longview Fibre Co.		3,313		63,245
LSI Industries, Inc.		1,234		20,966
MacDermid, Inc.		1,971		56,765
Maverick Tube Corp. ^(a)		2,676		169,096
Medis Technologies Ltd. ^(a)		1,339		27,155
Mercer International, Inc. ^(a)		1,856		16,110
Metal Management, Inc.		1,697		51,962
MGP Ingredients, Inc. ^(a)		622		14,443
Minerals Technologies, Inc.		1,281		66,612
Mobile Mini, Inc. ^(a)		2,200		64,372
Mueller Industries, Inc.		2,283		75,407
Mueller Water Products, Inc. Class A ^(a)		1,632		28,413
Myers Industries, Inc.		1,712		29,429
NCI Building Systems, Inc. ^(a)		1,298		69,015
Neenah Paper, Inc.		923		28,105
NewMarket Corp.		1,061		52,053
NL Industries		442		4,751
NN, Inc.		1,060		13,091
NS Group, Inc. ^(a)		1,442		79,425
Nuco2, Inc. ^(a)		1,011		24,304
Olin Corp.		4,614		82,729
Olympic Steel, Inc. ^(a)		545		19,288
OM Group, Inc. ^(a)		1,845		56,918
Omnova Solutions, Inc. ^(a)		2,698		15,325
Oregon Steel Mills, Inc. ^(a)		2,211		112,009
Perini Corp. ^(a)		1,203		27,068
Pioneer Companies, Inc. ^(a)		734		20,024
PolyOne Corp. ^(a)		5,957		52,302
Potlatch Corp.		2,414		91,129
PW Eagle, Inc. ^(a)		685		20,714
Quanex Corp.		2,350		101,215
Rock-Tenn Co.		1,909		30,449
Rockwood Holdings, Inc. ^(a)		2,292		52,739
Rogers Corp. ^(a)		1,129		63,608
Royal Gold, Inc.		1,138		31,659
RTI International Metals, Inc. ^(a)		1,383		77,227
Ryerson Tull, Inc.		1,628		43,956
Schnitzer Steel Industries, Inc.		1,419		50,346
Schulman A, Inc.		1,987		45,482
Shiloh Industries, Inc. ^(a)		314		4,723
Silgan Holdings, Inc.		1,389		51,407
Simpson Manufacturing Co., Inc.		2,264		81,617
Spartech Corp.		2,090		47,234
The Standard Register Co.		1,071		12,691
Steel Technologies, Inc.		624		12,131
Stepan Co.		296		9,348
Sterling Constuction Co. ^(a)		566		15,622
Stillwater Mining Co. ^(a)		2,544		32,258
Superior Essex, Inc. ^(a)		1,311		39,238
Symyx Technologies, Inc. ^(a)		2,112		51,005
Tejon Ranch Co. ^(a)		710		29,224
Terra Industries, Inc. ^(a)		6,021		38,354
Texas Industries, Inc.		1,468		77,951
Trammell Crow Co. ^(a)		2,177		76,565
Tredegar Corp.		2,221		35,136
Trex Co, Inc. ^(a)		749		19,392
Tronox, Inc.		2,522		33,215
UAP Holding Corp.		3,316		72,322
Universal Forest Products, Inc.		993		62,291
US Concrete, Inc. ^(a)		2,176		24,045
USEC, Inc.		5,594		66,289
Valley National Gases, Inc.		158		4,132
Valmont Industries, Inc.		1,073		49,884
Washington Group International, Inc.		1,808		96,439
Watsco, Inc.		1,815		108,573
Wausau Paper Corp.		2,753		34,275
WCI Communities, Inc. ^(a)		2,167		43,643
WD-40 Co.		1,040		34,913
Wheeling-Pittsburgh Corp. ^(a)		493		9,806
Worthington Industries		4,489		94,045

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

Summit Mutual Funds, Inc. — Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE
MATERIALS — 8.7% (Continued)
WR Grace & Co. ^(a)		4,357	$	50,977
Xerium Technologies, Inc.		1,284		12,095
Zoltek Companies, Inc. ^(a)		921		27,529

				7,566,876


OTHER — 0.4%
Compass Diversified Trust		854		12,187
GenCorp, Inc. ^(a)		3,526		56,522
Gentek, Inc. ^(a)		666		17,882
Kaman Corp.		1,451		26,408
Lancaster Colony Corp.		1,675		66,112
Raven Industries, Inc.		978		30,807
Sequa Corp. ^(a)		346		28,199
Star Maritime Acquisition Corp. ^(a)		1,221		12,406
Trinity Industries, Inc.		1		20
United Community Banks Inc.		2,205		67,120

				317,663


TECHNOLOGY — 12.9%
@Road, Inc. ^(a)		4,010		22,135
3Com Corp. ^(a)		24,804		126,996
3D Systems Corp. ^(a)		757		15,208
Acacia Research — Acacia Technologies ^(a)		1,814		25,505
Access Integrated Technologies, Inc. ^(a)		875		8,584
Actel Corp. ^(a)		1,631		23,405
Actuate Corp. ^(a)		3,671		14,831
Adaptec, Inc. ^(a)		7,245		31,443
ADTRAN, Inc.		4,280		96,000
Advanced Analogic Technologies, Inc. ^(a)		2,395		25,100
Advanced Digital Information Corp. ^(a)		4,135		48,669
Aeroflex, Inc. ^(a)		4,838		56,459
Agile Software Corp. ^(a)		3,686		23,369
Agilysys, Inc.		1,981		35,658
Altiris, Inc. ^(a)		1,448		26,122
American Reprographics Co. ^(a)		1,701		61,661
American Science & Engineering, Inc. ^(a)		450		26,064
AMIS Holdings, Inc. ^(a)		2,850		28,500
Amkor Technology, Inc. ^(a)		6,513		61,613
Anadigics, Inc. ^(a)		3,073		20,651
Anaren, Inc. ^(a)		1,040		21,310
Anixter International, Inc.		1,994		94,635
Ansoft Corp. ^(a)		1,070		21,914
Ansys, Inc. ^(a)		2,146		102,622
Applied Micro Circuits Corp. ^(a)		20,031		54,685
Ariba, Inc. ^(a)		4,690		38,599
Art Technology Group, Inc. ^(a)		7,258		21,629
Aspen Technology, Inc. ^(a)		2,909		38,166
Atheros Communications, Inc. ^(a)		3,362		63,744
Audible, Inc. ^(a)		1,450		13,181
Avanex Corp. ^(a)		10,708		18,846
Avid Technology, Inc. ^(a)		2,751		91,691
Avocent Corp. ^(a)		3,220		84,525
BearingPoint, Inc. ^(a)		11,888		99,503
Bel Fuse, Inc.		716		23,492
Benchmark Electronics, Inc. ^(a)		4,050		97,686
Black Box Corp.		1,051		40,285
Blackbaud, Inc.		2,844		64,559
Blackboard, Inc. ^(a)		1,806		52,302
Blue Coat Systems, Inc. ^(a)		773		13,033
Bookham, Inc. ^(a)		3,776		12,687
Borland Software Corp. ^(a)		5,175		27,324
Bottomline Technologies, Inc. ^(a)		959		7,806
Broadwing Corp. ^(a)		4,699		48,635
Brocade Communications Systems, Inc. ^(a)		17,398		106,824
CACI International, Inc. — Class A ^(a)		1,990		116,077
Carrier Access Corp. ^(a)		1,354		11,198
Cbeyond Communications, Inc. ^(a)		1,072		23,380
Checkpoint Systems, Inc. ^(a)		2,365		52,527
Chordiant Software, Inc. ^(a)		5,163		15,644
Ciber, Inc. ^(a)		3,446		22,709
Cirrus Logic, Inc. ^(a)		5,527		44,990
Click Commerce, Inc. ^(a)		595		11,739
Cogent Communications Group, Inc. ^(a)		1,366		12,799
Coherent, Inc. ^(a)		2,002		67,527
CommScope, Inc. ^(a)		3,713		116,662
COMSYS IT Partners, Inc. ^(a)		960		14,515
Comtech Group, Inc. ^(a)		952		10,596
Comtech Telecommunications ^(a)		1,421		41,593
Concur Technologies, Inc. ^(a)		1,956		30,259
Conexant Systems, Inc. ^(a)		30,544		76,360
Consolidated Communications Holdings, Inc.		1,517		25,228
Convera Corp. — Class A ^(a)		1,831		12,304
Covansys Corp. ^(a)		1,996		25,090
CPI International, Inc. ^(a)		460		6,670
CSG Systems International ^(a)		3,144		77,783
Cubic Corp.		970		19,022
Daktronics, Inc.		2,526		72,926
DealerTrack Holdings Inc. ^(a)		692		15,300
Dendrite International, Inc. ^(a)		2,759		25,493
Digi International, Inc. ^(a)		1,410		17,667
Digital River, Inc. ^(a)		2,462		99,440
Digitas, Inc. ^(a)		5,780		67,164
Diodes, Inc. ^(a)		1,287		53,333
Ditech Networks, Inc. ^(a)		2,076		18,103
DSP Group, Inc. ^(a)		1,880		46,718
Eagle Test Systems, Inc. ^(a)		477		6,688
Echelon Corp. ^(a)		1,920		14,381
eCollege.com, Inc. ^(a)		1,104		23,339
EDO Corp.		988		24,048
Electronics for Imaging ^(a)		3,701		77,277
Emageon, Inc. ^(a)		1,364		19,901
EMS Technologies, Inc. ^(a)		987		17,736
Emulex Corp. ^(a)		5,381		87,549
Epicor Software Corp. ^(a)		3,433		36,150
EPIQ Systems, Inc. ^(a)		892		14,843
Equinix, Inc. ^(a)		1,863		102,204
Essex Corp. ^(a)		1,067		19,654
Exar Corp. ^(a)		2,316		30,733
Excel Technology, Inc. ^(a)		752		22,500
Extreme Networks, Inc. ^(a)		7,895		32,843
FalconStor Software, Inc. ^(a)		2,411		16,805
Fargo Electronics, Inc. ^(a)		789		20,033
File Net Corp. ^(a)		2,554		68,779
Finisar Corp. ^(a)		14,009		45,809
Flir Systems, Inc. ^(a)		4,502		103,096
Formfactor, Inc. ^(a)		2,982		133,087
Foundry Networks, Inc. ^(a)		9,489		101,153
Gartner, Inc. ^(a)		3,595		51,049
Gateway, Inc. ^(a)		16,718		31,764

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO


	SHARES		VALUE

TECHNOLOGY — 12.9% (Continued)
Genesis Microchip, Inc. ^(a)		2,206	$	25,501
Gerber Scientific, Inc. ^(a)		1,470		19,125
Harmonic, Inc. ^(a)		4,736		21,217
Heartland Payment Systems, Inc. ^(a)		907		25,287
Herley Industries, Inc. ^(a)		807		9,046
Hittite Microwave Corp. ^(a)		846		30,591
Hutchinson Technology, Inc. ^(a)		1,636		35,387
Hyperion Solutions Corp. ^(a)		3,860		106,536
I2 Technologies, Inc. ^(a)		923		11,694
ID Systems, Inc. ^(a)		721		12,783
Identix, Inc. ^(a)		5,752		40,206
iGate Corp. ^(a)		1,315		8,403
II-VI, Inc. ^(a)		1,496		27,377
Ikanos Communications ^(a)		1,337		20,309
Imation Corp.		2,098		86,123
Infocrossing, Inc. ^(a)		1,377		15,904
Informatica Corp. ^(a)		5,627		74,051
Innovative Solutions & Support, Inc. ^(a)		833		11,712
Inphonic, Inc. ^(a)		994		6,262
Integral Systems, Inc.		713		19,130
Intergraph Corp. ^(a)		1,828		57,564
Intermagnetics General Corp. ^(a)		2,729		73,628
Intermec, Inc. ^(a)		3,193		73,247
International DisplayWorks, Inc. ^(a)		2,881		14,981
Internet Capital Group, Inc. ^(a)		2,398		21,582
Internet Security Systems ^(a)		2,443		46,051
Inter-Tel, Inc.		1,292		27,210
InterVoice, Inc. ^(a)		2,362		16,817
Interwoven, Inc. ^(a)		2,688		23,063
Ionatron, Inc. ^(a)		1,563		9,925
Ixia ^(a)		2,793		25,137
IXYS Corp. ^(a)		1,605		15,408
j2 Global Communications, Inc. ^(a)		3,081		96,189
JDA Software Group, Inc. ^(a)		1,882		26,404
Jupitermedia Corp. ^(a)		1,263		16,419
Kanbay International, Inc. ^(a)		2,159		31,392
Keane, Inc. ^(a)		2,938		36,725
Kemet Corp. ^(a)		5,604		51,669
Komag, Inc. ^(a)		1,992		91,991
Kopin Corp. ^(a)		4,582		16,541
Lattice Semiconductor Corp. ^(a)		7,386		45,645
Lawson Software, Inc. ^(a)		8,103		54,290
Lionbridge Technologies ^(a)		3,345		18,498
Loral Space & Communications, Inc. ^(a)		741		21,015
Macrovision Corp. ^(a)		3,268		70,327
Magma Design Automation, Inc. ^(a)		2,190		16,097
Manhattan Associates, Inc. ^(a)		1,727		35,041
Mantech International Corp. - Class A ^(a)		1,173		36,199
MapInfo Corp. ^(a)		1,289		16,821
Maxwell Technologies, Inc. ^(a)		935		18,354
McData Corp. ^(a)		10,078		41,118
Mentor Graphics Corp. ^(a)		5,079		65,925
Mercury Computer Systems, Inc. ^(a)		1,307		20,115
Merge Technologies, Inc. ^(a)		1,237		15,227
Methode Electronics, Inc.		2,269		23,847
Micrel, Inc. ^(a)		4,732		47,367
MICRO Systems, Inc. ^(a)		2,374		103,696
Microsemi Corp. ^(a)		4,607		112,319
MicroStrategy, Inc. ^(a)		654		63,778
Microtune, Inc. ^(a)		3,374		21,121
Mindspeed Technologies, Inc. ^(a)		7,175		17,292
MIPS Technologies, Inc. ^(a)		2,754		16,717
Mobility Electronics, Inc. ^(a)		1,738		12,618
Monolithic Power Systems, Inc. ^(a)		1,133		13,403
MoSys, Inc. ^(a)		1,469		11,488
Move, Inc. ^(a)		6,526		35,762
MRO Software, Inc. ^(a)		1,245		24,987
MRV Communications, Inc. ^(a)		8,118		25,247
Multi-Fineline Electronix, Inc. ^(a)		450		14,936
Neoware Systems, Inc. ^(a)		1,290		15,854
Ness Technologies, Inc. ^(a)		1,787		19,210
Netgear, Inc. ^(a)		2,061		44,621
Netlogic Microsystems, Inc. ^(a)		1,037		33,443
Netscout Systems, Inc. ^(a)		1,542		13,755
Newport Corp. ^(a)		2,647		42,670
Nextest Sys Corp. ^(a)		392		6,354
Novatel Wireless, Inc. ^(a)		1,882		19,535
Nuance Communications, Inc. ^(a)		8,475		85,259
Omnivision Technologies, Inc. ^(a)		3,420		72,230
ON Semiconductor Corp. ^(a)		9,915		58,300
Online Resources Corp. ^(a)		1,276		13,194
Open Solutions, Inc. ^(a)		1,219		32,438
Openwave Systems, Inc. ^(a)		6,115		70,567
Oplink Communications, Inc. ^(a)		915		16,754
Opnet Technologies, Inc. ^(a)		840		10,886
Opsware, Inc. ^(a)		4,835		39,840
Optical Communication Products, Inc. ^(a)		940		1,889
OSI Systems, Inc. ^(a)		938		16,668
Packeteer, Inc. ^(a)		2,190		24,835
Palm Inc. ^(a)		5,969		96,101
Parametric Technology Corp. ^(a)		7,045		89,542
Park Electrochemical Corp.		1,248		32,136
PDF Solutions, Inc. ^(a)		1,151		14,284
Pegasus Wireless Corp. ^(a)		3,524		31,505
Pegasystems, Inc.		824		5,290
Pericom Semiconductor Corp. ^(a)		1,715		14,235
Perot Systems Corp. ^(a)		5,305		76,816
Plantronics, Inc.		3,185		70,739
Plexus Corp. ^(a)		2,964		101,398
PLX Technology, Inc. ^(a)		1,512		18,477
PortalPlayer, Inc. ^(a)		1,608		15,774
Power Integrations, Inc. ^(a)		1,910		33,387
Progress Software Corp. ^(a)		2,477		57,987
QAD, Inc.		760		5,890
Quantum Corp. ^(a)		11,924		31,241
Quest Software, Inc. ^(a)		4,368		61,327
Rackable Systems, Inc. ^(a)		1,803		71,200
Radiant Systems, Inc. ^(a)		1,515		16,014
Radisys Corp. ^(a)		1,367		30,019
RealNetworks, Inc. ^(a)		6,929		74,140
Redback Networks, Inc. ^(a)		3,611		66,226
RF Micro Devices, Inc. ^(a)		12,167		72,637
RightNow Technologies, Inc. ^(a)		978		16,313
RSA Security, Inc. ^(a)		4,890		132,959
Safeguard Scientifics, Inc. ^(a)		7,826		16,904
SafeNet, Inc. ^(a)		1,593		28,228
Sapient Corp. ^(a)		5,234		27,740
SAVVIS, Inc. ^(a)		543		16,078

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

Summit Mutual Funds, Inc. — Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE

TECHNOLOGY — 12.9% (Continued)
Scansource, Inc. ^(a)		1,582	$	46,384
Secure Computing Corp. ^(a)		3,166		27,228
SI International, Inc. ^(a)		726		22,259
Sigma Designs, Inc. ^(a)		1,482		13,975
Silicon Image, Inc. ^(a)		5,122		55,215
Silicon Storage Technology, Inc. ^(a)		5,691		23,105
Sirenza Microdevices, Inc. ^(a)		1,618		19,643
Sirf Technology Holdings, Inc. ^(a)		3,344		107,744
Skyworks Solutions, Inc. ^(a)		10,206		56,235
Smith Micro Software, Inc. ^(a)		1,309		20,970
SonicWALL, Inc. ^(a)		4,196		37,722
Sonus Networks, Inc. ^(a)		16,087		79,631
SPSS, Inc. ^(a)		1,195		38,407
SRA International, Inc. — Class A ^(a)		2,495		66,442
SSA Global Technologies, Inc. ^(a)		608		11,783
Staktek Holdings, Inc. ^(a)		777		3,776
Standard Microsystems Corp. ^(a)		1,433		31,282
Stellent, Inc.		1,584		15,127
Stratasys, Inc. ^(a)		579		17,057
Stratex Networks, Inc. ^(a)		6,261		21,225
Sunpower Corp. ^(a)		667		18,689
Supertex, Inc. ^(a)		781		31,193
Sybase, Inc. ^(a)		5,862		113,723
Sycamore Networks, Inc. ^(a)		11,435		46,426
SYKES Enterprises, Inc. ^(a)		1,668		26,955
Synaptics, Inc. ^(a)		1,629		34,861
Syniverse Holdings, Inc. ^(a)		1,538		22,609
SYNNEX Corp. ^(a)		813		15,414
Syntel, Inc.		433		8,859
TALX Corp.		2,089		45,686
Tekelec ^(a)		3,661		45,213
Terremark Worldwide, Inc. ^(a)		1,944		6,998
Tessera Technologies, Inc. ^(a)		3,001		82,528
TIBCO Software, Inc. ^(a)		14,001		98,707
Transaction Systems Architects, Inc. ^(a)		2,350		97,972
Transmeta Corp. ^(a)		12,737		20,889
Transwitch Corp. ^(a)		8,222		17,348
Trident Microsystems, Inc. ^(a)		3,530		66,999
Triquint Semiconductor, Inc. ^(a)		9,013		40,198
Trizetto Group ^(a)		2,747		40,628
TTM Technologies, Inc. ^(a)		2,673		38,678
TurboChef Technologies, Inc. ^(a)		798		8,874
Tyler Technologies, Inc. ^(a)		2,210		24,752
Ulticom, Inc. ^(a)		807		8,449
Ultimate Software Group, Inc. ^(a)		1,564		29,966
Universal Display Corp. ^(a)		1,554		20,684
UTStarcom, Inc. ^(a)		7,869		61,300
VA Software Corp. ^(a)		4,063		15,764
Varian, Inc. ^(a)		2,002		83,103
VASCO Data Security International, Inc. ^(a)		1,551		12,951
Verint Systems, Inc. ^(a)		818		23,877
Viasat, Inc. ^(a)		1,300		33,384
Vignette Corp. ^(a)		1,886		27,498
Viisage Technology, Inc. ^(a)		1,452		22,012
Virage Logic Corp. ^(a)		850		7,982
Volterra Semiconductor Corp. ^(a)		952		14,528
Vonage Holdings Corp. ^(a)		2,039		17,515
WebEx Communications, Inc. ^(a)		2,725		96,847
webMethods, Inc. ^(a)		3,469		34,239
Websense, Inc. ^(a)		3,097		63,612
Wind River Systems, Inc. ^(a)		4,594		40,887
Witness Systems, Inc. ^(a)		1,997		40,279
Zhone Technologies, Inc. ^(a)		7,119		14,523
Zoran Corp. ^(a)		3,174		77,255

				11,166,683


UTILITIES — 3.7%
Alaska Communications Systems Group, Inc.		2,733		34,572
Allete, Inc.		1,646		77,938
American States Water Co.		1,047		37,326
Aquila, Inc. ^(a)		24,185		101,819
Atlantic Tele-Network, Inc. ^(a)		348		7,249
Avista Corp.		3,148		71,869
Black Hills Corp.		2,033		69,793
California Water Service Group		1,078		38,528
Cascade Natural Gas Corp.		736		15,522
Centennial Communications Corp.		1,430		7,436
CH Energy Group, Inc.		986		47,328
Cincinnati Bell, Inc. ^(a)		15,881		65,112
Cleco Corp.		3,237		75,260
Commonwealth Telephone Enterprises, Inc.		1,323		43,871
CT Communications, Inc.		1,185		27,101
Dobson Communications Corp. ^(a)		9,192		71,054
Duquesne Light Holdings, Inc.		5,024		82,595
El Paso Electric Co. ^(a)		3,092		62,335
The Empire District Electric Co.		1,951		40,093
EnergySouth, Inc.		374		11,680
Eschelon Telecom, Inc. ^(a)		608		9,406
Fairpoint Communications, Inc.		1,759		25,330
First Avenue Networks, Inc. ^(a)		3,557		38,700
General Communication ^(a)		3,603		44,389
Golden Telecom, Inc.		1,300		32,955
Idacorp, Inc.		2,632		90,251
IDT Corp. ^(a)		3,504		48,320
Iowa Telecommunications Services, Inc.		2,046		38,710
iPCS, Inc. ^(a)		1,088		52,550
ITC Holdings Corp.		801		21,291
The Laclede Group Inc.		1,272		43,706
Mediacom Communications Corp. ^(a)		3,848		23,973
MGE Energy, Inc.		1,232		38,377
New Jersey Resources Corp.		1,780		83,268
Nicor, Inc.		2,863		118,814
North Pittsburgh Systems, Inc.		937		25,824
Northwest Natural Gas Co.		1,791		66,321
Northwestern Corp.		2,222		76,326
Ntelos Holdings Corp. ^(a)		840		12,138
Ormat Technologies, Inc.		527		20,105
Otter Tail Corp.		1,890		51,654
Peoples Energy Corp.		2,371		85,143
Piedmont Natural Gas Co. ^(a)		4,972		120,820
PNM Resources, Inc. ^(a)		4,483		111,896
Portland General Electric Co.		1,751		43,722
Premiere Global Services, Inc. ^(a)		4,670		35,258
Price Communications Corp. ^(a)		2,983		50,562
RCN Corp. ^(a)		1,897		47,292
Shenandoah Telecom Co.		383		18,001
SJW Corp.		961		24,457
South Jersey Industries, Inc.		1,813		49,658
Southwest Gas Corp.		2,469		77,378

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

Summit Mutual Funds, Inc. – Pinnacle Series


SCHEDULE OF INVESTMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO


	SHARES		VALUE

UTILITIES — 3.7% (Continued)
Southwest Water Co.		1,469	$	17,584
SureWest Communications		911		17,601
Talk America Holdings, Inc. ^(a)		1,923		11,903
Time Warner Telecom, Inc. ^(a)		4,946		73,448
Ubiquitel, Inc. ^(a)		4,927		50,945
UIL Holdings Corp.		914		51,449
Unisource Energy Corp.		2,156		67,159
USA Mobility, Inc.		1,748		29,017
Valor Communications Group, Inc.		2,691		30,812
Westar Energy, Inc. ^(a)		5,675		119,459
WGL Holdings, Inc.		3,155		91,337

				3,175,790


Total Common Stocks (Cost $71,319,514)				81,157,024


	PRINCIPAL
	AMOUNT		VALUE

CORPORATE BONDS — 0.0%
MATERIALS — 0.0%
Mueller Industries, Inc. 6.000%, 11/01/2014	$	15,000	$	13,800


Total Corporate Bonds (Cost $15,000)				13,800


SHORT TERM INVESTMENTS ^(c)— 5.4%
U.S. TREASURY BILLS — 3.4% 4.800%, 09/14/2006		3,000,000		2,971,170


	SHARES		VALUE

MONEY MARKET FUNDS — 2.0%
Northern Institutional Diversified Assets Portfolio		1,754,088	$	1,754,088


Total Short Term Investments (Cost $4,724,275)				4,725,258

TOTAL INVESTMENTS (Cost $76,058,789) ^(b)— 99.1%				85,896,082
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.9%				763,985

TOTAL NET ASSETS - 100.0%			$	86,660,067


^(a)		Non income producing security.

^(b)		For federal income tax purposes, cost is $76,247,223 and gross unrealized appreciation and depreciation of securities as of June 30, 2006 was $14,421,580 and ($4,772,721), respectively. with a net appreciation / (depreciation) of $9,648,859.

^(c)		Securities and other assets with an aggregate value of $4,681,600 have been segregated with the custodian or designated to cover margin requirements for the open futures contracts as of June 30, 2006:


			Unrealized
			Appreciation/
Type	Contracts		(Depreciation)

Russell 2000 Index (09/06)		10	$	227,170
Russell 2000 Index Mini (09/06)		14	$	76,916

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

Summit Mutual Funds, Inc. – Pinnacle Series


RUSSELL 2000 SMALL CAP INDEX PORTFOLIO		FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)


ASSETS
Investments in securities, at value	$	85,896,082
Receivables:
Shares sold		246,922
Securities sold		13,953,187
Interest and dividends		116,796
Variation margin		64,640
Prepaid expenses and other		3,617

		100,281,244


LIABILITIES
Payables:
Investment securities purchased		13,487,178
Shares redeemed		26,977
12b-1 fees		181
Bank overdraft		30,561
Advisory fees		28,986
Administration expenses		6,854
Directors’ fees		286
Custodian fees		11,910
Fund accounting fees		7,055
Professional fees		9,296
Royalty fees		4,961
Other accrued expenses		6,932

		13,621,177


NET ASSETS*
Paid-in capital		71,084,372
Accumulated net investments income / (loss)		306,258
Accumulated net realized gain / (loss) on investments and futures contracts		5,128,058
Net unrealized appreciation / (depreciation) on investments and futures contracts		10,141,379

	$	86,660,067


Investments at cost	$	76,058,789
Shares Authorized – Class I ($.10 par value)		20,000,000
Shares Authorized – Class F ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS


			Shares
Share Class	Net Assets		Outstanding
Class I	$	86,364,723		1,269,266	$	68.04
Class F	$	295,344		4,346	$	67.96


*		FEDERAL TAX DATA AS OF DECEMBER 31, 2005


Undistributed ordinary income	$	603,226
Undistributed long-term gains	$	2,421,668
Unrealized appreciation	$	9,773,389

STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 (Unaudited)


INVESTMENT INCOME
Interest	$	144,770
Dividends		494,254
Foreign dividend taxes withheld		(30	)

		638,994


EXPENSES
Advisory fees		147,592
Administration expenses		42,169
Custodian fees and expenses		20,200
Fund accounting fees and expenses		20,248
Professional fees		10,549
Directors’ fees		4,701
Transfer agent fees		7,976
Royalty fee		4,819
12b-1 fees – Class F		178
Other expenses		6,105

		264,537

NET INVESTMENT INCOME / (LOSS)		374,457


REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments and options		5,331,381
Net realized gain / (loss) on futures contracts		(79,329	)

		5,252,052


Net change in unrealized appreciation / (depreciation) on investments and futures contracts		243,996


NET REALIZED AND UNREALIZED GAIN / (LOSS)		5,496,048


NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS	$	5,870,505

TRANSACTIONS WITH AFFILIATES:


Percent of Current
Net Asset Value
Advisory	Administration			Expense
Fee	Fee			Limit⁽¹⁾			Waiver	Reimbursement

0.35%		0.10	%		0.40	%	$—	$—


⁽¹⁾		The Adviser has agreed to pay other expenses of the portfolio, other than the advisory fees, to the extent that such expenses exceed the stated percentage of their average net assets.

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

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL STATEMENTS		RUSSELL 2000 SMALL CAP INDEX PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS


	For the
	Six Months
	Ended June 30,			Year Ended
	(Unaudited)			December 31,
	2006			2005⁽¹⁾
OPERATIONS
Net investment income / (loss)	$	374,457		$	479,266
Net realized gain / (loss) on investments and futures		5,252,052			2,726,979
Net change in unrealized appreciation / (depreciation) on investments		243,996			(375,506	)

		5,870,505			2,830,739


DISTRIBUTIONS TO SHAREHOLDERS*
Class I
Net investment income		(521,036	)		(335,674	)
Net realized gain on investments		(2,571,112	)		(677,888	)
Class F
Net investment income		(153	)		—
Net realized gain on investments		(792	)		—

		(3,093,093	)		(1,013,562	)


FUND SHARE TRANSACTIONS Class I
Proceeds from shares sold		13,207,983			19,532,734
Reinvestment of distributions		3,092,148			1,013,562
Payments for shares redeemed		(8,533,746	)		(15,318,613	)

		7,766,385			5,227,683


FUND SHARE TRANSACTIONS Class F
Proceeds from shares sold		298,647			5,002
Reinvestment of distributions		945			—
Payments for shares redeemed		(3,496	)		(2	)

		296,096			5,000

NET INCREASE / (DECREASE) IN NET ASSETS		10,839,893			7,049,860
NET ASSETS
Beginning of period		75,820,174			68,770,314

End of period	$	86,660,067		$	75,820,174

ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	306,258		$	452,990


FUND SHARE TRANSACTIONS Class I
Sold		189,446			313,268
Reinvestment of distributions		44,542			16,964
Redeemed		(122,859	)		(248,011	)

Net increase / (decrease) from fund share transactions		111,129			82,221


FUND SHARE TRANSACTIONS Class F
Sold		4,306			78
Reinvestment of distributions		13			—
Redeemed		(51	)		—

Net increase / (decrease) from fund share transactions		4,268			78


TOTAL COST OF PURCHASES OF:
Common Stocks	$	21,263,938		$	19,618,076

	$	21,263,938		$	19,618,076


TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	16,596,071		$	16,360,578

	$	16,596,071		$	16,360,578


*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	671,425		$	710,279
Long-term capital gains		2,421,668			303,283

	$	3,093,093		$	1,013,562


⁽¹⁾		For the Period from October 4, 2005 to December 31, 2005 for Class F.

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

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 June 30, 2006, the Summit EAFE International Index Portfolio’s total return was 10.16% (after waivers and reimbursements, but before the impact of any product or contract-level fees). This compares to a 10.50% total return for the MSCI EAFE Index. The difference of 0.34% is referred to as “tracking error.” One component of the difference is attributed to the Portfolio’s operating expenses. These expenses represent the Portfolio’s costs for advisory, administration, accounting, custody and other services. 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; broker’s 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 total return of the Index.

Fund Data

Manager: Subadvised by World Asset Management
A division of Munder Capital Management


Inception Date:		November 12, 2002
Total Net Assets:		$51.75 Million
No. of Holdings:		848
Median Cap Size:		$2,553 Million
Average Price-to-book Ratio:		2.28 x
Dividend Yield:		2.57%

Top 10 Equity Holdings


	(% of net assets)
BP Plc		2.07	%
HSBC Holdings Plc		1.63	%
GlaxoSmithKline Plc		1.34	%
Toyota Motor Corp.		1.33	%
Royal Dutch Shell Plc — Class A		1.13	%
Novartis AG		1.06	%
Mitsubishi Tokyo Financial Group, Inc.		1.05	%
Vodafone Group Plc		1.05	%
Nestle SA		1.04	%
UBS AG		0.98	%

Sector Allocations

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

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL HIGHLIGHTS		EAFE INTERNATIONAL INDEX PORTFOLIO

FINANCIAL HIGHLIGHTS


	Six Months												Period from
	Ended June 30,												November 12, 2002⁽¹⁾
	(Unaudited)			Year Ended December 31,									to December 31,
	2006			2005			2004			2003			2002
Net asset value, beginning of period	$	81.98		$	74.34		$	64.41		$	49.59		$	50.00


Investment Activities:
Net investment income / (loss)		1.05			1.59			1.00	⁽⁴⁾		1.34			0.19
Net realized and unrealized gains / (losses)		7.14			7.59			10.42			14.49			(0.60	)

Total from Investment Activities		8.19			9.18			11.42			15.83			(0.41	)


DISTRIBUTIONS:
Net investment income		(1.63	)		(0.72	)		(0.69	)		(0.19	)		—
Net realized gains		(1.98	)		(0.82	)		(0.80	)		(0.82	)		—

Total Distributions		(3.61	)		(1.54	)		(1.49	)		(1.01	)		—

Net asset value, end of period	$	86.56		$	81.98		$	74.34		$	64.41		$	49.59

Total return		10.16	%		12.57	%		18.02	%		32.79	%		-0.82	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets — net⁽²⁾		0.95	%⁽³⁾		0.95	%		0.95	%		0.65	%		0.65	%⁽³⁾
Ratio of expenses to average net assets — gross		1.53	%⁽³⁾		1.50	%		1.69	%		2.46	%		1.99	%⁽³⁾
Ratio of net investment income / (loss) to average net assets		2.63	%⁽³⁾		1.75	%		1.70	%		2.14	%		2.24	%⁽³⁾
Portfolio turnover rate		17.30	%		76.61	%		55.49	%		75.27	%		449.05	%⁽³⁾
Net assets, end of period (000’s)	$	51,752		$	44,084		$	50,938		$	16,565		$	22,234


⁽¹⁾		Commencement of operations.

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

⁽³⁾		Annualized.

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

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

Summit Mutual Funds, Inc. — Pinnacle Series


EAFE INTERNATIONAL INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS

JUNE 30, 2006 (Unaudited)


	SHARES		VALUE
COMMON STOCKS — 97.2%
AUSTRALIA — 5.1%
A.B.C. Learning Centres Ltd.		1,921	$	9,136
Alumina Ltd.		6,014		30,166
Amcor Ltd.		4,824		23,946
AMP Ltd.		8,099		54,948
Aristocrat Leisure Ltd.		1,483		14,194
Australia & New Zealand Banking Group Ltd.		7,866		155,425
Australian Gas Light Co. Ltd.		2,180		28,366
AXA Asia Pacifica Holdings Ltd.		4,489		20,915
Babcock & Brown Ltd.		646		10,412
BHP Billiton Ltd.		15,720		338,765
Billabong International Ltd.		907		10,346
BlueScope Steel Ltd.		3,249		19,194
Boral Ltd.		3,694		22,344
Brambles Industries Ltd.		4,190		34,250
Caltex Australia Ltd.		623		10,926
Centro Properties Group		4,753		23,629
Centro Retail Group		1		1
Coca-Cola Amatil Ltd.		4,559		24,022
Cochlear Ltd.		252		10,230
Coles Myer Ltd.		5,020		42,377
Commonwealth Bank of Australia		5,551		183,189
Computershare Ltd.		2,512		14,653
CSL Ltd.		866		34,590
CSR Ltd.		5,654		14,075
Downer EDI Ltd.		1,675		9,261
Foster’s Group Ltd.		10,464		42,534
Goodman Fielder Ltd. ^(a)		6,433		10,230
GPT Group		10,673		34,421
Insurance Australia Group Ltd.		6,989		27,785
Investa Property Group		17,239		28,055
John Fairfax Holdings Ltd.		6,769		18,863
Lend Lease Corp. Ltd.		1,798		18,692
Macquarie Airports		4,003		9,132
Macquarie Bank Ltd.		1,105		56,658
Macquarie Goodman Group		6,465		28,825
Macquarie Infrastructure Group		10,988		27,435
Mirvac Group		7,231		23,374
Multiplex Group		3,642		8,850
National Australia Bank Ltd.		6,873		179,574
Newcrest Mining Ltd.		1,716		26,880
Orica Ltd.		1,461		25,937
Origin Energy Ltd.		4,726		25,848
Perpetual Trustees Australia Ltd.		289		15,709
Qantas Airways Ltd.		6,099		13,415
QBE Insurance Group Ltd.		3,587		54,643
Rinker Group Ltd.		4,208		51,251
Rio Tinto Ltd.		1,314		75,967
Santos Ltd.		3,498		31,452
Sonic Healthcare Ltd.		1,385		14,615
Stockland		7,173		37,418
Suncorp-Metway Ltd.		2,736		39,341
TABCORP Holdings Ltd.		2,977		33,626
Telstra Corp.		8,620		23,572
Toll Holdings Ltd.		2,640		27,563
Transurban Group		4,618		23,850
Wesfarmers Ltd.		1,649		43,292
Westfield Group		5,993		77,178
Westpac Banking Corp.		7,775		134,503
Woodside Petroleum Ltd.		2,189		71,573
Woolworths Ltd.		5,197		77,817
WorleyParsons Ltd.		1,021		15,250
Zinifex Limited		2,688		20,015

				2,614,503


AUSTRIA — 0.5%
BetandWin.com Interactive Entertainment AG ^(a)		105		8,326
Erste Bank der Oesterreichischen Sparkassen AG		919		51,720
Oesterreischeische Elektrizitaetswirtschafts-AG		462		22,218
OMV AG		965		57,456
Raiffeisen International Bank-Holding AG		184		15,980
Telekom Austria AG		1,527		34,004
Voestalpine AG		150		22,793
Wienerberger AG		534		25,374

				237,871


BELGIUM — 1.1%
AGFA-Gevaert NV		720		17,442
Belgacom SA		888		29,451
Delhaize Group		384		26,620
Dexia		2,788		67,041
Fortis		5,398		183,793
Groupe Bruxelles Lambert SA		389		40,749
Interbrew SA		865		42,430
KBC Groep NV		826		88,640
Mobistar SA		188		14,921
Solvay SA		313		36,011
UCB SA		369		19,964
Umicore		148		19,763

				586,825


DENMARK — 0.7%
AP Moller — Maersk A/S		4		31,139
Danisco A/S		374		27,256
Danske Bank A/S		1,827		69,548
DSV A/S		128		21,400
FLSmidth & Co A/S		274		10,336
GN Store Nord A/S		1,324		15,211
Jyske Bank A/S ^(a)		414		23,995
Novo-Nordisk A/S — Class B		1,126		71,728
Novozymes A/S		292		19,728
Topdanmark A/S ^(a)		116		16,171
Vestas Wind Systems A/S ^(a)		801		21,907
William Demant Holding A/S ^(a)		202		15,102

				343,521


FINLAND — 1.5%
Amer Sports Oyj		733		15,310
Elisa Corporation		770		14,665
Fortum Oyj		2,065		52,825
Kesko Oyj — B Shares		535		20,515
Kone Oyj		500		20,785
Metso Oyj		741		26,888
Neste Oil Oyj		782		27,546
Nokia Oyj		18,597		379,633
Nokian Renkaat Oyj		715		9,401
Orion Oyj		488		9,693
Outokumpu Oyj		671		15,706
Rautaruukki Oyj		547		16,525

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		EAFE INTERNATIONAL INDEX PORTFOLIO


	SHARES		VALUE
FINLAND — 1.5% (Continued)
Sampo Oyj		2,105	$	40,171
Stora Enso Oyj		2,896		40,449
Tietoenator Oyj		527		15,220
UPM-Kymmene Oyj		2,605		56,143
Wartsila Oyj — B Shares		392		16,546
YIT Oyj		856		20,989

				799,010


FRANCE — 9.4%
Accor SA		876		53,322
Air France-KLM		701		16,480
Air Liquide SA		549		106,925
Alcatel SA ^(a)		6,304		79,986
Alstom ^(a)		484		44,232
Arcelor		2,275		109,817
Atos Origin SA ^(a)		296		19,365
Axa		6,747		221,440
BNP Paribas SA		3,744		358,439
Bouygues SA		973		50,030
Business Objects SA ^(a)		546		14,896
Cap Gemini SA		571		32,595
Carrefour SA		2,631		154,260
Casino Guichard Perrachon SA		267		20,303
CNP Assurances		208		19,780
Compagnie de Saint-Gobain		1,419		101,457
Compagnie Generale des Etablissements Michelin — B Shares		714		42,922
Credit Agricole SA		2,602		99,011
Dassault Systemes SA		290		15,542
Essilor International SA		494		49,727
France Telecom SA		7,317		157,322
Gaz de France		877		29,445
Groupe Danone		1,083		137,621
Hermes International		99		8,756
Lafarge SA		694		87,124
Lagardere S.C.A.		592		43,690
L’Oreal SA		1,369		129,313
LVMH Moet Hennessy Louis Vuitton SA		1,097		108,882
M6 Metropole Television		316		9,890
Neopost SA		178		20,286
Pagesjaunes Groupe SA		670		21,038
Pernod-Ricard SA		359		71,173
Peugeot SA		714		44,429
PPR SA		294		37,491
Publicis Groupe		621		23,988
Renault SA		861		92,506
Safran SA		956		20,812
Sanofi-Aventis		4,536		442,675
Schneider Electric SA		1,071		111,644
SCOR SA		4,484		9,807
Societe Generale		1,634		240,346
Societe Television Francaise 1		602		19,635
Sodexho Alliance SA		447		21,480
Suez SA		4,447		184,858
Technip SA		459		25,421
Thales SA		521		20,351
Thomson		1,359		22,475
Total SA		9,977		656,558
Unibail		245		42,712
Valeo SA		402		14,315
Vallourec SA		32		38,474
Veolia Environnement		1,243		64,246
Vinci SA		890		91,695
Vivendi Universal SA		5,068		177,613
Zodiac SA		281		15,803

				4,854,403


GERMANY — 6.6%
Adidas AG		941		45,315
Allianz AG		1,816		286,744
Altana AG		341		19,043
BASF AG		2,321		186,255
Bayer AG		3,243		149,244
Bilfinger Berger AG		269		14,633
Celesio AG		272		24,739
Commerzbank AG		3,035		110,208
Continental AG		625		63,969
DaimlerChrysler AG		4,221		208,180
Deutsche Bank AG		2,342		263,487
Deutsche Boerse AG		498		67,952
Deutsche Lufthansa AG		1,106		20,413
Deutsche Post AG		3,079		82,741
Deutsche Postbank AG		298		21,425
Deutsche Telekom AG		11,198		180,038
E.ON AG		2,832		326,004
Fresenius Medical Care AG		266		30,416
Heidelberger Druckmaschien AG		354		16,255
Hochtief AG		192		10,702
Hypo Real Estate Holding AG		674		40,863
Infineon Technologies AG ^(a)		3,583		39,871
IVG Immobilien AG		508		15,594
Karstadt Quelle AG ^(a)		370		9,744
Linde AG		440		33,925
MAN AG		593		42,990
Merck KGaA		259		23,587
Metro AG		715		40,577
Muenchener Rueckversicherungs AG		867		118,523
Puma AG Rudolf Dassler Sport		56		21,793
Rheinmetall AG		225		15,661
RWE AG		2,153		179,272
Salzgitter AG		189		15,943
SAP AG		1,004		211,759
Siemens AG		3,855		335,537
Solarworld AG		40		2,515
ThyssenKrupp AG		1,735		59,251
TUI AG		989		19,620
Volkswagen AG		1,097		76,891
Wincor Nixdorf AG		75		9,521

				3,441,200


GREECE — 0.6%
Alpha Bank AE		2,008		50,026
Coca-Cola Hellenic Bottling Co. SA		644		19,192
EFG Eurobank Ergasias SA		1,203		33,365
Emporiki Bank of Greece SA ^(a)		491		17,020
Hellenic Telecommunications Organization SA ^(a)		1,394		30,703
National Bank of Greece SA		1,509		59,601
OPAP SA		1,207		43,690
Piraeus Bank SA		1,366		32,504

				286,101

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

Summit Mutual Funds, Inc. — Pinnacle Series


EAFE INTERNATIONAL INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE
HONG KONG — 1.5%
Bank of East Asia Ltd.		8,751	$	36,001
BOC Hong Kong Holdings Ltd.		17,858		34,951
Cheung Kong (Holdings) Ltd.		6,858		74,308
CLP Holdings Ltd.		8,513		49,820
Esprit Holdings Ltd.		4,401		35,927
Foxconn International Holdings Ltd. ^(a)		10,570		22,593
Hang Lung Properties Ltd.		11,233		20,105
Hang Seng Bank Ltd.		3,535		44,834
Henderson Land Development Co. Ltd.		4,964		25,791
Hong Kong & China Gas Co. Ltd.		15,632		34,318
Hong Kong Exchanges and Clearing Ltd.		5,140		33,059
HongKong Electric Holdings Ltd.		6,544		29,618
Hutchison Telecomunications International Limited ^(a)		6,094		9,808
Hutchison Whampoa Ltd.		9,224		84,208
Kingboard Chemical Holdings Ltd.		3,850		10,856
Li & Fung Ltd.		9,743		19,695
Link REIT ^(a)		10,068		20,159
Melco International Development Limited		3,801		9,544
New World Development Co. Ltd.		13,439		22,149
PCCW Ltd.		24,147		17,256
Shangri-La Asia Ltd.		7,576		14,584
Sun Hung Kai Properties Ltd.		6,296		64,206
Swire Pacific Ltd. — Class A		4,662		48,113
Techtronic Industries Co.		7,307		9,879
Wharf Holdings Ltd.		8,393		29,827

				801,609


IRELAND (REPUBLIC OF) — 0.8%
Allied Irish Banks Plc		4,002		96,028
Bank of Ireland		4,517		80,596
C&C Group Plc		1,717		14,912
CRH Plc		2,533		82,356
DCC Plc		635		15,269
Depfa Bank Plc		1,793		29,813
Elan Corp. Plc ^(a)		2,168		36,049
Grafton Group Plc ^(a)		1,534		19,326
Irish Life & Permanent Plc		1,274		30,309
Kingspan Group		899		15,696
Ryanair Holdings Plc ^(a)		1,068		9,699

				430,053


ITALY — 3.7%
Alleanza Assicurazioni SpA		2,623		29,725
Assicurazioni Generali SpA		4,257		155,071
Autostrade SpA		1,395		39,201
Banca Antonveneta SpA ^(a)		467		15,829
Banca Intesa SpA		20,380		119,387
Banca Monte dei Paschi di Siena SpA		5,196		31,236
Banca Popolare di Milano Scrl		2,473		31,520
Banche Popolari Unite Scrl		1,693		43,807
Banco Popolare di Verona e Novara Scrl		1,788		47,912
Capitalia SpA		7,481		61,383
Enel SpA		18,321		157,942
ENI SpA		11,460		337,572
Fiat SpA ^(a)		2,623		34,925
Finmeccanica SpA		1,568		34,816
Fondiaria — Sai SpA		409		16,719
Lottomatica SpA		532		20,182
Luxottica Group SpA		761		20,674
Mediaset SpA		3,446		40,638
Mediobanca SpA		2,482		48,603
Mediolanum SpA		1,448		10,168
Pirelli & Co.		15,799		13,751
Sanpaolo IMI SpA		5,139		90,905
Seat-Pagine Gialle SpA		22,552		10,500
Snam Rete Gas SpA		6,687		29,401
Telecom Italia SpA — RNC		24,049		62,135
Telecom Italia SpA		44,501		123,941
Terna SpA		7,200		19,201
Unicredito Italiano SpA		34,021		266,309

				1,913,453


JAPAN — 24.5%
The 77 Bank, Ltd.		2,095		14,590
Acom Co. Ltd.		344		18,667
Advantest Corp.		406		41,366
Aeon Co. Ltd.		2,794		61,280
Aeon Credit Service Co. Ltd.		381		9,255
Aiful Corp.		374		19,968
Aisin Seiki Co. Ltd.		979		29,086
Ajinomoto Co. Inc.		3,440		38,085
Alps Electric Co.		1,224		15,295
Amada Co. Ltd.		2,080		21,811
Asahi Breweries Ltd.		2,057		28,885
Asahi Glass Co. Ltd.		4,706		59,668
Asahi Kasei Corp.		5,614		36,645
Asics Corp.		1,010		10,291
Astellas Pharma, Inc.		2,415		88,632
The Bank of Fukuoka Ltd.		2,874		21,849
The Bank of Kyoto Ltd.		1,524		16,447
The Bank of Yokohama Ltd.		5,846		45,209
Benesse Corp.		427		14,738
Bridgestone Corp.		2,949		56,821
Canon, Inc.		4,805		235,523
Casio Computer Co. Ltd.		1,184		22,606
Central Japan Railway Co.		9		89,654
The Chiba Bank Ltd.		3,399		31,780
Chiyoda Corp.		817		16,706
Chubu Electric Power Co. Inc.		2,839		76,656
Chugai Pharmaceutical Co. Ltd.		1,348		27,504
Citizen Watch Co. Ltd.		2,080		18,848
Credit Saison Co. Ltd.		803		38,031
CSK Holdings Corp.		330		15,052
Dai Nippon Printing Co. Ltd.		3,086		47,730
Daido Steel Co.		1,938		15,207
Daiichi Sankyo Co. Ltd.		3,285		90,421
Daikin Industries Ltd.		1,107		38,403
Daimaru, Inc.		1,069		14,161
Dainippon Ink and Chemicals, Inc.		4,037		15,133
Dainippon Screen Manufacturing Co. Ltd.		1,082		9,909
Daito Trust Construction Co. Ltd.		371		20,553
Daiwa House Industry Co. Ltd.		2,264		36,203
Daiwa Securities Group, Inc.		5,773		68,808
Denki Kagaku Kogyo Kabushiki Kaisha		3,522		14,649
Denso Corp.		2,432		79,480
Dentsu, Inc.		8		22,090
Dowa Mining Co.		1,805		15,962
E*Trade Securities Co. Ltd.		12		16,043
East Japan Railway Co.		14		103,985
EDION Corp.		494		9,799

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		EAFE INTERNATIONAL INDEX PORTFOLIO


	SHARES		VALUE
JAPAN — 24.5% (Continued)
Eisai Co. Ltd.		1,249	$	56,207
Electric Power Development Co. Ltd.		711		27,088
Elpida Memory, Inc. ^(a)		369		13,865
FamilyMart Co. Ltd.		359		10,352
Fanuc Ltd.		833		74,827
Fast Retailing Co. Ltd.		234		19,118
Fuji Electric Holdings Co. Ltd.		3,043		15,928
Fuji Photo Film Co. Ltd.		2,231		74,861
Fujikura Ltd.		1,847		20,384
Fujitsu Ltd.		9,339		72,385
The Furukawa Electric Co.		3,465		22,406
The Gunma Bank Ltd.		2,044		15,182
Haseko Corporation ^(a)		2,881		9,793
Hirose Electric Co. Ltd.		159		19,312
Hitachi Chemical Co. Ltd.		607		15,912
Hitachi Construction Machinery Co. Ltd.		451		10,857
Hitachi Ltd.		15,179		100,274
Hokkaido Electric Power Co. Inc.		1,536		36,440
Hokuhoku Financial Group, Inc.		4,894		20,442
Honda Motor Co. Ltd.		7,114		225,654
Hoya Corp.		2,090		74,330
Ibiden Co. Ltd.		676		32,489
Inpex Holdings, Inc. ^(a)		5		44,128
Isetan Co. Ltd.		1,108		18,880
Ishikawajima-Harima Heavy Industries Co. Ltd.		6,628		20,966
Itochu Corp.		6,781		59,550
JAFCO Co. Ltd.		174		10,430
Japan Steel Works Ltd.		1,623		11,119
Japan Tobacco, Inc.		23		83,808
JFE Holdings, Inc.		2,586		109,595
JGC Corp.		974		16,758
The Joyo Bank Ltd.		3,509		21,280
JSR Corp.		1,022		25,809
Kajima Corp.		4,188		19,213
Kamigumi Co. Ltd.		2,517		19,113
Kaneka Corp.		1,524		13,850
The Kansai Electric Power Co. Inc.		3,560		79,636
Kao Corp.		2,412		63,124
Kawasaki Heavy Industries Ltd.		6,342		21,336
Kawasaki Kisen Kaisha Ltd.		3,334		19,286
KDDI Corp.		9		55,287
Keihin Electric Express Railway Co. Ltd.		2,711		19,188
Keio Corp.		3,087		19,988
Keyence Corp.		182		46,342
Kintetsu Corp.		9,247		30,866
Kirin Brewery Co. Ltd.		3,845		60,444
Kobe Steel Ltd.		13,335		41,716
Komatsu Ltd.		4,285		85,183
Konami Corp.		452		9,973
Konica Minolta Holdings, Inc. ^(a)		2,594		32,754
Koyo Seiko Co.		1,101		21,262
Kubota Corp.		5,485		52,003
Kuraray Co. Ltd.		2,205		24,663
Kurita Water Industries Ltd.		784		16,099
Kyocera Corp.		759		58,762
Kyushu Electric Power Co. Inc.		1,762		40,955
Lawson, Inc.		427		15,559
LEOPALACE21 Corp.		600		20,710
Makita Corp.		683		21,605
Marubeni Corp.		6,922		36,896
Marui Co. Ltd.		1,452		22,610
Matsushita Electric Industrial Co. Ltd.		9,076		191,529
Matsushita Electric Works Ltd.		1,806		20,058
Mediceo Paltac Holdings Co. Ltd.		840		15,010
Millea Holdings, Inc.		5		93,062
Minebea Co.		2,782		15,145
Mitsubishi Chemical Holdings ^(a)		5,510		34,425
Mitsubishi Electric Corp.		8,909		71,387
Mitsubishi Estate Co. Ltd.		5,109		108,484
Mitsubishi Gas Chemical Co. Ltd.		1,784		20,453
Mitsubishi Heavy Industries Ltd.		15,425		66,585
Mitsubishi Materials Corp.		4,851		20,686
Mitsubishi Rayon Co. Ltd.		3,200		26,061
Mitsubishi Securities Co. Ltd.		1,106		14,265
Mitsubishi Tokyo Financial Group, Inc.		39		545,264
Mitsubishi Corp.		6,145		122,696
Mitsui & Co. Ltd.		6,838		96,559
Mitsui Chemicals, Inc.		3,738		24,400
Mitsui Engineering & Shipbuilding Co.		3,583		10,958
Mitsui Fudosan Co. Ltd.		3,662		79,518
Mitsui Mining & Smelting Co. Ltd.		3,385		19,966
Mitsui OSK Lines Ltd.		5,157		35,059
Mitsui Sumitomo Insurance Co. Ltd.		5,345		67,116
Mitsui Trust Holdings, Inc.		2,743		32,957
Mitsukoshi Ltd.		3,077		14,062
Mizuho Financial Group, Inc.		45		381,029
Murata Manufacturing Co. Ltd.		955		62,003
Namco Bandai Holdings, Inc.		1,043		15,842
NEC Corp.		10,015		53,383
NET One Systems Co. Ltd.		6		11,167
NGK Insulators Ltd.		1,791		20,940
NGK Spark Plug Co. Ltd.		807		16,219
Nidec Corp.		553		39,624
Nikko Cordial Corp.		3,990		51,043
Nikon Corp.		1,655		28,895
Nintendo Co. Ltd.		441		73,988
Nippon Electric Glass Co. Ltd.		1,292		25,910
Nippon Express Co. Ltd.		4,857		26,229
Nippon Meat Packers, Inc.		1,276		14,785
Nippon Mining Holdings, Inc.		4,162		35,023
Nippon Oil Corp.		6,466		47,235
Nippon Paper Group, Inc.		5		20,447
Nippon Sheet Glass Co. Ltd.		1,777		9,876
Nippon Steel Corp.		28,222		106,782
Nippon Telegraph & Telephone Corp.		23		112,749
Nippon Yusen Kabushiki Kaisha		5,379		34,970
The Nishi-Nippon City Bank Ltd.		2,164		10,362
Nissan Chemical Industries, Ltd.		794		9,894
Nissan Motor Co. Ltd.		10,518		114,886
Nisshin Steel Co.		4,840		15,564
Nissin Food Products Co. Ltd.		717		25,312
Nitori Co. Ltd.		207		10,075
Nitto Denko Corp.		783		55,762
NOK Corp.		703		20,395
Nomura Holdings, Inc.		8,164		153,022
Nomura Research Institute Ltd.		138		17,075
NSK Ltd.		2,543		21,088
NTN Corp.		1,872		14,804

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

Summit Mutual Funds, Inc. — Pinnacle Series


EAFE INTERNATIONAL INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE
JAPAN — 24.5% (Continued)
NTT Data Corp.		5	$	21,627
NTT DoCoMo, Inc.		89		130,654
Obayashi Corp.		2,783		19,139
Odakyu Electric Railway Co. Ltd.		4,186		26,995
OJI Paper Co. Ltd.		3,805		21,645
Olympus Corp.		1,132		30,268
Omron Corp.		1,178		30,006
Onward Kashiyama Co. Ltd.		998		15,357
Oriental Land Co. Ltd.		348		19,583
ORIX Corp.		411		100,380
Osaka Gas Co. Ltd.		10,495		33,748
Otsuka Corp.		90		10,145
Pioneer Corp.		975		15,727
Promise Co. Ltd.		406		23,521
Rakuten, Inc.		34		20,203
Resona Holdings, Inc.		21		66,244
Ricoh Co. Ltd.		3,108		60,970
Rohm Co. Ltd.		505		45,143
Ryohin Keikaku Co. Ltd.		121		9,918
SANKYO CO. Ltd.		314		19,947
Santen Pharmaceutical Co. Ltd.		652		15,497
Sanyo Electric Co. Ltd. ^(a)		9,158		19,766
SBI Holdings, Inc.		37		16,327
Secom Co. Ltd.		1,031		48,739
Sega Sammy Holdings, Inc.		786		29,121
Seiko Epson Corp.		746		20,338
Sekisui Chemical Co. Ltd.		2,425		20,936
Sekisui House Ltd.		2,518		34,566
Seven & I Holdings Co. Ltd.		3,930		129,466
Sharp Corp.		5,062		79,973
Shimamura Co.		127		13,916
Shimano, Inc.		525		16,056
Shimizu Corp.		2,547		14,266
Shin-Etsu Chemical Co. Ltd.		1,826		99,246
Shinko Electric Industries Co. Ltd.		405		11,749
Shinko Securities Co. Ltd.		3,441		14,553
Shinsei Bank Ltd.		6,071		38,461
Shionogi & Co. Ltd.		1,417		25,259
Shiseido Co. Ltd.		1,689		33,134
The Shizuoka Bank Ltd.		2,909		31,418
Showa Denko K.K.		5,039		22,412
Showa Shell Sekiyu KK		1,290		15,139
Skylark Co. Ltd.		445		9,702
SMC Corp.		256		36,217
Softbank Corp.		3,876		86,875
Sojitz Corporation ^(a)		2,452		9,685
Sompo Japan Insurance, Inc.		3,875		54,177
Sony Corp.		4,636		204,577
Stanley Electric Co. Ltd.		752		15,508
Sumco Corp.		270		15,383
Sumitomo Chemical Co. Ltd.		6,944		57,887
Sumitomo Electric Industries Ltd.		3,102		45,430
Sumitomo Heavy Industries Ltd.		2,832		26,182
Sumitomo Metal Industries Ltd.		19,317		79,672
Sumitomo Metal Mining Co. Ltd.		2,869		37,404
Sumitomo Mitsui Financial Group, Inc.		27		285,477
Sumitomo Realty & Development Co. Ltd.		1,698		41,842
Sumitomo Rubber		1,328		14,610
The Sumitomo Trust & Banking Co. Ltd.		5,881		64,237
Sumitomo Corp.		4,739		62,488
Suruga Bank Ltd.		1,132		15,253
Suzuken Co. Ltd.		392		15,551
T&D Holdings, Inc.		1,046		84,546
Taiheiyo Cement Corp.		5,280		19,470
Taisei Corp.		5,436		19,855
Taisho Pharmaceutical Co. Ltd.		1,051		20,618
Takashimaya Co. Ltd.		1,505		18,885
Takeda Pharmaceutical Co. Ltd.		3,981		247,682
Takefuji Corp.		550		32,777
Tanabe Seiyaku Co.		1,244		15,305
TDK Corp.		633		48,122
Teijin Ltd.		4,696		29,791
Terumo Corp.		895		29,875
THK Co. Ltd.		705		21,007
Tobu Railway Co. Ltd.		5,517		26,322
TOHO Co. Ltd.		1,157		23,102
Toho Titanium Co. Ltd.		189		10,206
Tohoku Electric Power Co. Inc.		2,048		44,919
Tokuyama Corporation		1,071		15,910
The Tokyo Electric Power Co. Inc.		5,050		139,444
Tokyo Electron Ltd.		812		56,763
Tokyo Gas Co. Ltd.		10,734		50,556
Tokyo Seimitsu Co. Ltd.		201		10,433
Tokyo Steel Manufacturing Co. Ltd.		480		10,507
Tokyo Tatemono Co.		1,519		16,273
Tokyu Land Corp.		2,028		15,789
Tokyu Corp.		5,622		32,816
TonenGeneral Sekiyu KK		1,974		20,285
Toppan Printing Co. Ltd.		2,848		32,203
Toray Industries, Inc.		6,151		53,372
Toshiba Corp.		13,633		88,989
Tosoh Corp.		2,420		9,643
Tostem Inax Holding Corp.		1,478		31,061
Toto Ltd.		1,521		14,540
Toyo Seikan Kaisha Ltd.		819		14,850
Toyobo Co.		5,517		15,620
Toyoda Gosei Co. Ltd.		463		9,285
Toyota Industries Corp.		896		35,389
Toyota Motor Corp.		13,118		686,620
Toyota Tsusho Corp.		912		21,876
Trend Micro, Inc.		446		15,043
Ube Industries Ltd.		5,157		14,916
Uni-Charm Corp.		277		15,297
UNY Co. Ltd.		1,001		14,756
Ushio, Inc.		720		15,194
USS Co. Ltd.		218		14,401
West Japan Railway Co.		10		41,506
Yahoo Japan Corp.		72		38,127
Yakult Honsha Co.		661		17,963
Yamada Denki Co. Ltd.		393		40,076
Yamaha Motor Co. Ltd.		970		25,343
Yamaha Corp.		1,012		19,013
Yamato Holdings Co. Ltd.		1,787		31,699
Yaskawa Electric Corp.		983		11,424
Yokogawa Electric Corp.		1,073		15,292
Zeon Corporation		814		9,688

				12,664,578

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		EAFE INTERNATIONAL INDEX PORTFOLIO


	SHARES		VALUE
LUXEMBOURG — 0.0%
Acergy SA ^(a)		1,065	$	16,210


NETHERLANDS — 4.7%
ABN AMRO Holding NV		7,875		215,451
Aegon NV		6,737		115,209
Akzo Nobel NV		1,215		65,519
ASML Holding NV ^(a)		2,223		45,038
Buhrmann NV		686		9,950
Euronext NV		381		35,720
European Aeronautic Defense and Space Co.		1,444		41,482
Fugro NV		386		16,648
Hagemeyer NV ^(a)		2,178		10,057
Heineken NV		1,100		46,641
ING Groep NV		8,366		328,827
James Hardie Industries NV		2,427		13,887
Koninklijke Ahold NV ^(a)		6,737		58,509
Koninklijke DSM NV		726		30,235
Koninklijke Philips Electronics NV		5,903		184,452
Qiagen NV ^(a)		727		9,857
Randstad Holding NV		262		15,362
Reed Elsevier NV		3,651		54,917
Rodamco Europe NV		312		30,588
Royal Dutch Shell Plc — Class A		17,436		586,821
Royal KPN NV		8,121		91,303
Royal Numico NV		795		35,681
SBM Offshore NV		778		20,738
STMicroelectronics NV		3,130		50,403
TNT NV		1,918		68,641
Unilever NV		7,879		178,677
Vedior NV		945		19,847
Wereldhave NV		265		25,777
Wolters Kluwer NV		1,277		30,168

				2,436,405

NEW ZEALAND — 0.1%
Fisher & Paykel Healthcare Corporation Ltd.		5,081		13,343
Sky City Entertainment Group Ltd.		1		3
Telecom Corporation of New Zealand Ltd.		12,070		29,711

				43,057

NORWAY — 0.8%
Aker Kvaerner ASA		167		15,667
Det Norske Oljeselskap ASA ^(a)		4,428		8,892
DNB NOR ASA		3,067		38,061
Frontline Ltd.		307		11,466
Norsk Hydro ASA		3,406		90,281
Norske Skogindustrier ASA		999		14,644
Orkla ASA		956		44,307
Pertojarl ASA ^(a)		247		1,627
Petroleum Geo-Services ASA ^(a)		247		13,927
SeaDrill Ltd. ^(a)		1,180		15,544
Ship Finance International Ltd.		17		287
Statoil ASA		2,882		81,716
Storebrand ASA		1,453		14,997
Tandberg Television ASA ^(a)		541		8,973
Telenor ASA		3,147		38,043
TGS Nopec Geophysical Co. ASA ^(a)		576		10,179
Tomra Systems ASA		1,082		8,778
Yara International ASA		1,091		14,547

				431,936

PORTUGAL — 0.2%
Banco Comercial Portugues SA		11,928		33,869
Electricidade de Portugal SA		9,128		35,843
Portugal Telecom SGPS SA		3,998		48,273
Sonae SGPS, SA		6,337		9,483

				127,468

SINGAPORE — 0.7%
Capitaland Ltd.		7,360		20,924
City Developments Ltd.		3,434		20,285
DBS Group Holdings Ltd.		5,423		62,012
Keppel Corp. Ltd.		2,905		26,979
Oversea-Chinese Banking Corp. Ltd.		13,282		55,382
Singapore Airlines Ltd.		3,739		30,000
Singapore Press Holdings Ltd.		13,523		35,199
Singapore Telecommunications Ltd.		31,932		51,242
United Overseas Bank Ltd.		6,224		61,342
United Overseas Land Ltd.		1		1
Venture Corp. Ltd.		2,229		14,927

				378,293

SPAIN — 3.8%
Abertis Infraestructuras SA		1,267		29,672
Acciona SA		167		25,942
Acerinox SA		1,186		20,570
ACS, Actividades de Construccion y Servicios, SA		1,154		48,133
Altadis SA		1,246		58,903
Antena 3 de Television SA		633		14,460
Banco Bilbao Vizcaya Argentaria SA		15,246		313,567
Banco Popular Espanol SA		4,097		61,049
Banco Santander Central Hispano SA		26,502		387,108
Cintra Concesiones de Infraestructuras de Transporte SA		1,167		15,255
Corporacion Mapfre SA		798		14,728
Ebro Puleva SA		1,030		21,145
Endesa SA		4,099		142,553
Fomento de Construcciones y Contratas SA		275		20,911
Gamesa Corporacion Tecnologica SA		1,001		21,458
Gas Natural SDG SA		1,004		30,653
Grupo Ferrovial SA		351		26,802
Iberdrola SA		3,485		120,040
Inditex SA		1,035		43,660
Indra Sistemas SA		1,038		20,380
Inmobiliaria Colonial, SA		249		19,778
Metrovacesa SA		204		18,421
Repsol YPF SA		4,150		118,847
Sacyr Vallehermoso SA		500		16,711
Telefonica SA		18,580		309,417
Union Fenosa SA		636		24,616

				1,944,779

SWEDEN — 2.4%
Alfa Laval AB		550		16,469
Assa Abloy AB		1,769		29,742
Atlas Copco AB — A Shares		2,555		71,004
Boliden AB		1,486		27,359
Capio AB ^(a)		587		10,522
Electrolux AB		2,553		36,893
Eniro AB		931		9,799
Getinge AB		1,189		20,239
Hennes & Mauritz AB		2,164		83,893
Husqvarna AB — B Shares ^(a)		1,328		16,008

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

Summit Mutual Funds, Inc. — Pinnacle Series


EAFE INTERNATIONAL INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS


	SHARES		VALUE
SWEDEN — 2.4% (Continued)
Lundin Petroleum AB ^(a)		873	$	10,584
Modern Times Group MTG AB — Red Shares^(a)		298		1,020
Modern Times Group MTG AB — Class B ^(a)		298		15,673
Nordea Bank AB		9,802		117,132
OMX AB		566		10,145
Sandvik AB		4,833		56,243
Scania AB		570		25,899
Securitas AB — Class B		1,543		29,588
Skandinaviska Enskilda Banken AB		2,344		55,858
Skanska AB		2,002		30,878
SKF AB — B Shares		2,392		37,724
SSAB Svenskt Stal AB — Class A		1,119		22,312
Svenska Cellulosa AB — B Shares		846		34,972
Svenska Handelsbanken AB		2,452		63,202
Swedish Match AB		1,579		25,451
Tele2 AB — B Shares		1,899		19,197
Telefonaktiebolaget LM Ericsson — Class B		67,528		223,318
TeliaSonera AB		7,878		44,772
Volvo AB — B Shares		1,463		71,963

				1,217,859

SWITZERLAND — 6.6%
ABB Ltd.		9,406		122,331
Adecco SA		662		39,150
Ciba Specialty Chemicals AG		437		24,360
Clariant AG		1,040		14,759
Compagnie Financiere Richemont AG		2,423		110,988
Credit Suisse Group		5,252		293,842
Geberit AG		23		26,602
Givaudan SA		37		29,130
Holcim Ltd.		935		71,661
Kuehne & Nagel International AG		281		20,433
Logitech International SA ^(a)		379		14,632
Nestle SA		1,710		537,107
Nobel Biocare Holding AG		101		23,979
Novartis AG		10,150		549,613
Phonak Holding AG		245		15,321
PSP Swiss Property AG ^(a)		477		24,659
Roche Holding AG		2,887		477,251
Schindler Holding AG		298		15,466
Serono SA		22		15,197
SGS SA		21		19,925
Straumann Holding AG		38		9,690
Sulzer AG		21		15,734
Swatch Group AG		214		36,147
Swiss Re		1,514		105,821
Swisscom AG		89		29,301
Syngenta AG		499		66,326
Synthes, Inc.		243		29,318
UBS AG		4,605		504,740
Unaxis Holding AG ^(a)		38		10,568
Zurich Financial Services AG		635		139,201

				3,393,252

UNITED KINGDOM — 21.9%
3i Group Plc		2,453		40,896
Aegis Group Plc		3,897		9,386
Alliance Unichem Plc		1,362		25,740
AMEC Plc		1,516		8,922
Amvescap Plc		3,306		30,277
Anglo American Plc		6,794		278,660
ARM Holdings Plc		7,307		15,303
Associated British Ports Holdings Plc		1,697		28,337
AstraZeneca Plc		6,511		392,993
Aviva Plc		10,458		148,041
BAE Systems Plc		14,727		100,695
Balfour Beatty Plc		2,521		16,014
Barclays Plc		27,147		308,483
Barratt Developments Plc		1,211		21,230
BBA Group Plc		3,271		15,984
Bellway Plc		740		15,874
BG Group Plc		15,873		212,072
BHP Billiton Plc		11,710		227,154
BOC Group Plc		2,180		63,735
Boots Group Plc		2,501		35,588
BP Plc		91,987		1,072,504
Brambles Industries Plc		3,679		29,254
British Airways Plc ^(a)		2,311		14,648
British American Tobacco Plc		6,856		172,677
British Land Co.		2,372		55,399
British Sky Broadcasting Group Plc		4,599		48,774
BT Group Plc		35,784		158,317
Bunzl Plc		1,763		20,133
Burberry Group Plc		2,476		19,688
Cadbury Schweppes Plc		9,312		89,802
Capita Group Plc		2,966		25,312
Carnival Plc		763		31,083
Carphone Warehouse		1,560		9,159
Centrica Plc		15,086		79,579
Charter Plc ^(a)		698		10,410
Close Brothers Group Plc		867		14,606
Cobham Plc		6,618		20,438
Collins Stewart Tullett		1,138		15,972
Compass Group Plc		10,096		48,961
Cookson Group Plc		1,108		10,762
Corus Group Plc		4,263		35,990
Csr Plc ^(a)		610		14,213
Daily Mail & General Trust		1,694		19,234
Diageo Plc		11,905		200,226
DSG International Plc		8,242		29,111
Electrocomponents Plc		3,215		13,778
EMAP Plc		1,218		19,179
EMI Group Plc		3,782		21,243
Enterprise Inns Plc		1,709		29,960
First Choice Holidays Plc		2,383		10,080
FirstGroup Plc		1,960		16,999
Friends Provident Plc		7,581		25,059
Gallaher Group Plc		3,266		51,034
GKN Plc		3,926		19,820
GlaxoSmithKline Plc		24,894		695,579
Group 4 Securicor Plc		6,301		19,546
GUS Plc		4,034		72,061
Hammerson Plc		1,426		31,222
Hanson Plc		3,296		40,014
Hays Plc		6,618		16,521
HBOS Plc		15,539		270,109
HSBC Holdings Plc		47,881		842,480
ICAP Plc		2,204		20,297
IMI Plc		2,192		20,237

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		EAFE INTERNATIONAL INDEX PORTFOLIO


	SHARES		VALUE
UNITED KINGDOM — 21.9% (Continued)
Imperial Chemical Industries Plc		5,322	$	35,725
Imperial Tobacco Group Plc		3,038		93,763
Inchcape		2,441		21,328
Intercontinental Hotels Group Plc		1,694		29,620
International Power Plc		6,727		35,391
Invensys Plc ^(a)		23,915		8,513
Investec Plc		403		19,227
ITV Plc		17,664		35,278
J Sainsbury Plc		6,639		41,066
Johnson Matthey Plc		1,006		24,686
Kelda Group Plc		2,089		29,571
Kesa Electricals Plc		3,510		18,758
Kingfisher Plc		11,837		52,207
Ladbrokes Plc		3,391		25,550
Land Securities Group Plc		2,139		70,961
Legal & General Group Plc		27,747		65,805
Liberty International Plc		1,555		30,624
Lloyds TSB Group Plc		23,116		227,197
LogicaCMG Plc		4,790		15,457
London Stock Exchange Group		727		15,292
Man Group Plc		1,236		58,238
Marks & Spencer Group Plc		7,175		77,884
Meggitt Plc		2,784		16,436
Michael Page International Plc		1,457		9,444
Misys Plc		2,375		9,443
National Express Group Plc		678		11,133
National Grid Plc		11,505		124,461
Next Plc		1,111		33,529
Old Mutual Plc		24,624		74,336
Pearson Plc		3,669		49,970
Persimmon Plc		1,421		32,426
Provident Financial Plc		1,363		15,501
Prudential Plc		10,681		120,681
Punch Taverns Plc		1,248		20,193
Rank Group Plc		3,859		14,237
Reckitt Benckiser Plc		2,695		100,669
Reed Elsevier Plc		5,481		55,340
Rentokil Initial Plc		9,198		26,534
Reuters Group Plc		6,609		47,053
Rexam Plc		2,693		26,294
Rio Tinto Plc		5,150		272,276
Rolls-Royce Group Plc ^(a)		8,173		62,573
Royal & Sun Alliance Insurance Group		12,428		30,911
Royal Bank of Scotland Group Plc		13,109		431,011
Royal Dutch Shell Plc — Class B		12,206		426,823
SABMiller Plc		4,141		74,623
Sage Group Plc		5,872		25,056
Scottish & Newcastle Plc		3,643		34,340
Scottish & Southern Energy Plc		3,695		78,646
Scottish Power Plc		6,468		69,734
Serco Group		2,583		15,285
Severn Trent Plc		1,549		33,514
Signet Group Plc		8,221		14,594
Slough Estates Plc		2,731		30,882
Smith & Nephew Plc		4,243		32,680
Smiths Group Plc		2,771		45,656
Sportingbet Plc		2,020		14,699
Stagecoach Group Plc		5,424		11,560
Tate & Lyle Plc		2,336		26,156
Taylor Woodrow Plc		3,359		20,746
Tesco Plc		32,293		199,454
Tomkins Plc		3,905		20,779
Travis Perkins Plc		745		20,844
Trinity Mirror Plc		2,113		19,068
Unilever Plc ^(a)		5,694		127,936
United Business Media Plc		1,243		14,887
United Utilities Plc		3,987		47,291
Vodafone Group Plc		255,425		544,367
Whitbread Plc		1,055		22,750
William Hill Plc		2,203		25,523
Wimpey George Plc		2,526		21,242
Wolseley Plc		2,784		61,418
WPP Group Plc		5,335		64,570
Xstrata Plc		2,085		79,040
Yell Group Plc		3,611		34,155

				11,351,764

Total Common Stocks (Cost $35,625,680)				50,314,150


UNIT INVESTMENT TRUSTS — 1.1%
iShares MSCI EAFE Index Fund ^(a)		9,183		600,477

Total Unit Investment Trusts (Cost $573,275)				600,477


PREFERRED STOCKS — 0.2%
GERMANY — 0.2%
Henkel KGaA		308		35,215
Porsche AG		41		39,733
ProSiebenSat.1 Media AG		407		10,162

Total Preferred Stocks (Cost $63,625)				85,110


RIGHTS — 0.0%
Invensys Plc		9,566		716
Linde AG		440		1,700
National Bank Of Greece		1,509		4,767

Total Rights (Cost $4,421)				7,183


SHORT TERM INVESTMENTS — 2.2%
MONEY MARKET FUNDS— 2.2%
Northern Institutional Diversified Assets Portfolio		1,131,457		1,131,457

Total Short Term Investments (Cost $1,131,457)				1,131,457


TOTAL INVESTMENTS (Cost $37,398,458) ^(b) — 100.7%				52,138,377
LIABILITIES IN EXCESS OF OTHER ASSETS — (0.7)%				(386,072	)

TOTAL NET ASSETS — 100.0%			$	51,752,305


^{^(a)}		Non income producing security.

^(b)		For federal income tax purposes, cost is $37,847,450 and gross unrealized appreciation and depreciation of securities as of June 30, 2006 was $14,507,926 and ($216,999), respectively, with a net appreciation / (depreciation) of $14,290,927.

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


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

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2006 (Unaudited)


ASSETS
Investments in securities, at value	$	52,138,377
Cash		33,739
Receivables:
Shares sold		9,595
Securities sold		100,748
Interest and dividends		148,507
Receivable from Adviser		67,213
Prepaid expenses and other		14,175

		52,512,354


LIABILITIES
Payables:
Investment securities purchased		565,890
Shares redeemed		19,535
Administration expenses		23,715
Directors’ fees		208
Custodian fees		92,630
Fund accounting fees		24,655
Professional fees		10,419
Other accrued expenses		22,997

		760,049


NET ASSETS*
Paid-in capital		36,485,845
Accumulated net investments income / (loss)		563,114
Accumulated net realized gain / (loss) on investments and futures contracts		(36,460	)
Net unrealized appreciation / (depreciation) on investments and futures contracts and foreign currency translations		14,739,806

	$	51,752,305


Investments at cost	$	37,398,458
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS


			Shares
Share Class	Net Assets		Outstanding
Class I	$	51,752,305		597,896	$	86.56


*FEDERAL TAX DATA AS OF DECEMBER 31, 2005
Undistributed ordinary income	$	1,807,973
Undistributed long-term gains	$	160,530
Unrealized appreciation	$	10,850,166

STATEMENT OF OPERATIONS
For the six months ended June 30, 2006 (Unaudited)


INVESTMENT INCOME
Interest	$	8,410
Dividends		958,797
Foreign dividend taxes withheld		(96,036	)

		871,171


EXPENSES
Advisory fees		136,241
Administration expenses		24,329
Custodian fees and expenses		111,930
Fund accounting fees and expenses		64,105
Professional fees		10,070
Directors’ fees		3,303
Transfer agent fees		6,798
Royalty fee		9,412
Other expenses		5,521

		371,709

Reimbursements and waivers		(140,586	)

		231,123

NET INVESTMENT INCOME / (LOSS)		640,048


REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments and options		409,595
Net realized gain / (loss) on futures contracts		2,962

		412,557

Net change in unrealized appreciation / (depreciation) on investments and futures contracts		3,442,682

NET REALIZED AND UNREALIZED GAIN / (LOSS)		3,855,239

NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS	$	4,495,287


TRANSACTIONS WITH AFFILIATES:


Percent of Current
Net Asset Value
Advisory	Administration			Expense
Fee	Fee			Limit⁽¹⁾			Waiver		Reimbursement

0.56%		0.10	%		0.69	%	$	136,241	$	4,345

⁽¹⁾		The Adviser has agreed to pay other expenses of the portfolio, other than the advisory fees, to the extent that such expenses exceed the stated percentage of their average net assets.

⁽²⁾		The Adviser has voluntarily agreed to waive its fees and/or reimburse expenses of the portfolio to the extent necessary, to limit all expenses to 0.95% of the average daily net assets of the portfolio until December 31, 2006.

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


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

STATEMENTS OF CHANGES IN NET ASSETS


	For the
	Six Months
	Ended June 30,			Year Ended
	(Unaudited)			December 31,
	2006			2005

OPERATIONS
Net investment income / (loss)	$	640,048		$	878,823
Net realized gain / (loss) on investments and futures		412,557			1,252,335
Net change in unrealized appreciation / (depreciation) on investments		3,442,682			4,008,365

		4,495,287			6,139,523


DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(898,476	)		(503,262	)
Net realized gain on investments		(1,089,408	)		(572,574	)

		(1,987,884	)		(1,075,836	)


FUND SHARE TRANSACTIONS
Proceeds from shares sold		6,402,129			10,937,411
Reinvestment of distributions		1,987,884			1,075,836
Payments for shares redeemed		(3,228,738	)		(23,931,568	)

		5,161,275			(11,918,321	)

NET INCREASE / (DECREASE) IN NET ASSETS		7,668,678			(6,854,634	)
NET ASSETS
Beginning of period		44,083,627			50,938,261

End of period	$	51,752,305		$	44,083,627

ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	563,114		$	821,482


FUND SHARE TRANSACTIONS
Sold		74,159			145,658
Reinvestment of distributions		23,882			14,523
Redeemed		(37,866	)		(307,624	)

Net increase / (decrease) from fund share transactions		60,175			(147,443	)


TOTAL COST OF PURCHASES OF:
Preferred and Common Stocks	$	10,579,265		$	36,761,946

	$	10,579,265		$	36,761,946


TOTAL PROCEEDS FROM SALES OF:
Preferred and Common Stocks	$	8,432,418		$	48,427,494

	$	8,432,418		$	48,427,494


*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	1,827,354		$	855,328
Long-term capital gains		160,530			220,508

	$	1,987,884		$	1,075,836

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

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 June 30, 2006, the Summit Lehman Aggregate Bond Index Portfolio’s total return was (0.70)% (before the impact of any product or contract-level fees). This compares to a (0.72)% total return for the Lehman Aggregate Bond Index. The difference of 0.02% 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 broker’s 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.

Fund Data


Managers:		Gary R. Rodmaker
		Nick J. Kotsonis
		Kevin P. Aug
Inception Date:		April 1, 2003
Total Net Assets:		$37.56 Million
No. of Holdings:		95
Average Duration:		4.21 years
Average Maturity:		12.20 years
Average Credit Quality:		AA+/Aa1
Current Yield:		5.27%

Quality Breakdown


	(% of net assets)
AAA		76	%
AA		3	%
A		14	%
BBB		7	%

Sector Allocations


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

FINANCIAL HIGHLIGHTS


	For the Six Months									Period from
	Ended June 30,									April 1, 2003⁽¹⁾
	(Unaudited)			Year Ended December 31,						to December 31,
	2006			2005			2004			2003

Net asset value, beginning of period	$	49.06		$	50.13		$	49.78		$	50.00

Investment Activities:
Net investment income / (loss)		0.93			1.83			1.71	⁽⁴⁾		1.32
Net realized and unrealized gains / (losses)		(1.27	)		(1.06	)		0.03			(0.49	)

Total from Investment Activities		(0.34	)		0.77			1.74			0.83


DISTRIBUTIONS:
Net investment income		(1.01	)		(1.84	)		(1.39	)		(1.05	)

Total Distributions		(1.01	)		(1.84	)		(1.39	)		(1.05	)

Net asset value, end of period	$	47.71		$	49.06		$	50.13		$	49.78

Total return		-0.70	%		1.57	%		3.55	%		1.70	%

RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets — net⁽²⁾		0.57	%⁽³⁾		0.60	%		0.60	%		0.60	%⁽³⁾
Ratio of expenses to average net assets — gross		0.57	%⁽³⁾		0.63	%		0.71	%		1.10	%⁽³⁾
Ratio of net investment income / (loss) to average net assets		3.91	%⁽³⁾		3.54	%		3.26	%		2.83	%⁽³⁾
Portfolio turnover rate		17.38	%		15.93	%		43.24	%		31.94	%⁽³⁾
Net assets, end of period (000’s)	$	37,560		$	37,657		$	32,786		$	10,296


⁽¹⁾		Commencement of operations.

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

⁽³⁾		Annualized.

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

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

Summit Mutual Funds, Inc. — Pinnacle Series


LEHMAN AGGREGATE BOND INDEX PORTFOLIO		SCHEDULE OF INVESTMENTS

JUNE 30, 2006 (Unaudited)


	PRINCIPAL		VALUE

U.S. TREASURY OBLIGATIONS — 27.6%
U.S. TREASURY NOTES & BONDS
3.000%, 12/31/2006	$	500,000	$	494,394
2.250%, 02/15/2007		450,000		441,650
6.250%, 02/15/2007		450,000		452,479
2.750%, 08/15/2007		760,000		739,397
6.125%, 08/15/2007		500,000		504,512
5.500%, 02/15/2008		650,000		653,402
5.625%, 05/15/2008		300,000		302,367
3.125%, 10/15/2008		500,000		478,399
3.375%, 12/15/2008		196,000		188,099
5.500%, 05/15/2009		200,000		202,023
6.000%, 08/15/2009		750,000		768,721
6.500%, 02/15/2010		600,000		626,883
4.000%, 04/15/2010		250,000		240,547
5.750%, 08/15/2010		300,000		307,371
4.250%, 01/15/2011		950,000		917,307
4.875%, 02/15/2012		250,000		247,266
4.375%, 08/15/2012		100,000		96,195
3.875%, 02/15/2013		150,000		139,629
3.625%, 05/15/2013		300,000		274,418
6.250%, 08/15/2023		400,000		441,156
5.500%, 08/15/2028		500,000		513,711
5.250%, 11/15/2028		400,000		398,125
5.250%, 02/15/2029		725,000		721,828
6.125%, 08/15/2029		200,000		222,375

Total U.S. Treasury Obligations (Cost $10,722,165)				10,372,254


SOVEREIGN GOVERNMENT BONDS — 0.8%
Republic of Italy
2.500%, 07/15/2008		200,000		188,979
New Brunswick
6.750%, 08/15/2013		100,000		107,710

Total Sovereign Government Bonds (Cost $309,841)				296,689


MORTGAGE BACKED SECURITIES — 37.0%
Bear Stearns Commercial Mortgage Securities, Inc.
Series 2000-WF2, 7.110%, 10/15/2032		212,912		216,105
Series 2003-TOP12, 4.240%, 08/13/2039		350,000		330,234
Series 2004-PWR5, 4.254%, 07/11/2042		580,000		554,473
Fannie Mae
Pool # 615009, 5.000%, 12/01/2016		1,595,748		1,540,539
Fannie Mae Pool
Pool # 639917, 5.000%, 11/01/2017		222,010		214,306
Pool # 727360, 5.500%, 08/01/2018		503,169		494,639
Pool # 828624, 5.000%, 06/01/2020		763,608		735,659
Pool # 211487, 6.500%, 04/01/2023		90,086		91,694
Pool # 653650, 6.500%, 08/01/2032		500,021		501,497
Pool # 555591, 5.500%, 07/01/2033		812,492		783,811
Pool # 722267, 5.500%, 07/01/2033		956,652		922,883
Pool # 732114, 6.000%, 08/01/2033		204,465		201,871
Pool # 357457, 5.500%, 11/01/2033		914,737		882,447
Pool # 801322, 5.000%, 10/01/2034		1,225,289		1,149,023
Freddie Mac
Pool #G1-1798, 5.000%, 11/01/2020		926,618		892,135
Freddie Mac (Gold) Pool
Pool #E9-6460, 5.000%, 05/01/2018	$	1,427,249	$	1,376,951
Pool #E9-9160, 4.500%, 09/01/2018		544,867		515,359
Pool #C7-6658, 5.000%, 02/01/2033		1,140,537		1,070,281
Ginnie Mae Pool
Pool # 003583M, 5.500%, 07/20/2034		1,067,718		1,031,487
J.P. Morgan Chase Commercial Mortgage Backed Security Corp.
Series 2001-C1, 5.464%, 10/12/2035		373,321		370,389

Total Mortgage Backed Securities (Cost $14,575,188)				13,875,783


ASSET BACKED SECURITIES — 0.8%
Residential Asset Securities Corp.
Series 2003-KS4, 4.610%, 06/25/2033		298,000		289,323

Total Asset Backed Securities (Cost $294,518)				289,323


U.S. GOVERNMENT AGENCY ISSUES — 7.9%
Federal Farm Credit Bank
4.250%, 02/01/2012		750,000		706,210
Federal Home Loan Mortgage Corp.
3.500%, 09/15/2007		1,300,000		1,270,753
Freddie Mac
5.500%, 07/15/2006		800,000		799,982
5.750%, 03/15/2009		200,000		201,540

Total U.S. Government Agency Issues (Cost $3,065,165)				2,978,485


CORPORATE BONDS — 22.1%
CONSUMER DISCRETIONARY — 1.7%
Cintas Corp No. 2
5.125%, 06/01/2007		68,000		67,639
Comcast Corp.
5.300%, 01/15/2014		100,000		94,084
EW Scripps Co.
5.750%, 07/15/2012		180,000		176,674
Johnson Controls, Inc.
5.250%, 01/15/2011		200,000		194,899
Thomson Corp.
6.200%, 01/05/2012		100,000		101,069

				634,365


CONSUMER STAPLES — 1.6%
Campbell Soup Co.
5.875%, 10/01/2008		230,000		231,075
Cargill Inc.
5.000%, 11/15/2013 ^(a)		250,000		237,027
Diageo Capital PLC
3.375%, 03/20/2008		136,000		130,759

				598,861

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

Summit Mutual Funds, Inc. — Pinnacle Series


SCHEDULE OF INVESTMENTS		LEHMAN AGGREGATE BOND INDEX PORTFOLIO


	PRINCIPAL		VALUE

ENERGY — 2.8%
Colonial Pipeline Co.
7.750% 11/01/2010 ^(a)	$	375,000	$	403,875
6.580% 08/28/2032 ^(a)		100,000		105,966
Conoco Funding Co.
6.350%, 10/15/2011		80,000		82,306
Devon Financing Corp ULC
6.875%, 09/30/2011		280,000		291,116
Public Service North Carolina, Inc.
6.625%, 02/15/2011		180,000		186,283

				1,069,546

FINANCIALS — 3.8%
American General Finance Corp.
5.375%, 09/01/2009		210,000		207,595
Archstone-Smith Operating Trust
5.250%, 05/01/2015		250,000		235,019
Camden Property Trust
5.875%, 11/30/2012		100,000		98,736
Citigroup Capital II
7.750%, 12/01/2036		100,000		103,876
General Electric Capital Corp.
6.125%, 02/22/2011		250,000		254,699
Key Bank National Association
5.000%, 07/17/2007		185,000		183,174
Progressive Corp.
6.375%, 01/15/2012		165,000		169,245
TIAA Global Markets, Inc.
4.125% 11/15/2007 ^(a)		180,000		175,950

				1,428,294

HEALTH CARE — 1.6%
Amgen, Inc.
6.500%, 12/01/2007		180,000		181,920
C.R. Bard, Inc.
6.700%, 12/01/2026		250,000		259,277
Eli Lilly & Co.
2.900%, 03/15/2008		100,000		95,705
Pharmacia Corp.
5.875%, 12/01/2008		50,000		50,297

				587,199

INDUSTRIALS — 4.5%
Chevron Phillips Chemical Company LLC
7.000%, 03/15/2011		200,000		207,554
CSX Corp.
4.875%, 11/01/2009		180,000		174,932
Eaton Corp.
5.750%, 07/15/2012		439,000		440,300
Emerson Electric Co.
4.750%, 10/15/2015		200,000		184,541
Honeywell International, Inc.
7.500%, 03/01/2010		108,000		114,439
Masco Corp.
5.875%, 07/15/2012		180,000		176,908
Pitney Bowes, Inc.
4.625%, 10/01/2012		180,000		168,913
United Technologies Corp.
4.375%, 05/01/2010	$	250,000	$	239,359

				1,706,946

INFORMATION TECHNOLOGY — 1.3%
Cisco Systems, Inc.
5.250%, 02/22/2011		250,000		245,363
Oracle Corp / Ozark Holdings, Inc.
5.250%, 01/15/2016 ^(a)		250,000		234,127

				479,490

MATERIALS — 3.0%
Alcoa, Inc.
6.500%, 06/01/2011		200,000		205,972
Champion International Corp.
7.200%, 11/01/2026		200,000		205,907
Westvaco Corp.
7.950%, 02/15/2031		500,000		532,066
Weyerhaeuser Co.
7.500%, 03/01/2013		180,000		189,143

				1,133,088

TELECOMMUNICATION SERVICES — 1.2%
GTE Corp.
7.510%, 04/01/2009		180,000		187,058
6.940%, 04/15/2028		80,000		78,156
Sprint Capital Corp.
6.875%, 11/15/2028		180,000		181,333

				446,547

UTILITIES — 0.6%
Exelon Generation Co. LLC
5.350%, 01/15/2014		230,000		219,722

Total Corporate Bonds (Cost $8,798,846)				8,304,058


	SHARES		VALUE

UNIT INVESTMENT TRUSTS — 0.6%
iShares Lehman Aggregate Bond Fund		2,400	$	233,856

Total Unit Investment Trusts (Cost $237,014)				233,856

SHORT TERM INVESTMENTS — 2.0%
MONEY MARKET FUNDS — 2.0%
Northern Institutional Diversified Assets Portfolio		750,883		750,883

Total Short Term Investments (Cost $750,883)				750,883

TOTAL INVESTMENTS (Cost $38,753,620) ^(b) — 98.8%				37,101,331

NORTHERN INSTITUTIONAL LIQUID ASSETS PORTFOLIO ^(c) — 28.4%				10,675,592

LIABILITIES IN EXCESS OF OTHER ASSETS — (29.6)%				(10,217,146	)

TOTAL NET ASSETS — 100.0%			$	37,559,777


^(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 $38,759,172 and gross unrealized appreciation and depreciation of securities as of June 30, 2006 was $0 and ($1,657,841), respectively, with a net appreciation / (depreciation) of ($1,657,841).

^(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 $12,629,728, $10,675,592, and $2,195,769, respectively.

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

Summit Mutual Funds, Inc. — Pinnacle Series


LEHMAN AGGREGATE BOND INDEX PORTFOLIO		FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

June 30, 2006 (Unaudited)


ASSETS
Investments in securities, at value	$	37,101,331
Collateral for securities loaned, at fair value		10,675,592
Receivables:
Shares sold		77,685
Interest and dividends		425,266
Prepaid expenses and other		686

		48,280,560


LIABILITIES
Payables:
Shares redeemed		9,914
Payable upon return of securities loaned		10,675,592
Bank overdraft		29
Advisory fees		12,050
Administration expenses		3,796
Directors’ fees		156
Custodian fees		1,673
Fund accounting fees		4,634
Professional fees		8,556
Transfer Agent Fees		2,151
Other accrued expenses		2,232

		10,720,783


NET ASSETS*
Paid-in capital		39,418,129
Accumulated net investments income / (loss)		152,535
Accumulated net realized gain / (loss) on investments and futures contracts		(358,598	)
Net unrealized appreciation / (depreciation) on investments and futures contracts		(1,652,289	)

	$	37,559,777


Investments at cost		38,753,620
Shares authorized ($.10 par value)		20,000,000

NET ASSET VALUE (NAV) BY SHARE CLASS


Share Class	Net Assets		Shares Outstanding
Class I	$	37,559,777		787,285	$	47.71


* FEDERAL TAX DATA AS OF DECEMBER 31, 2005
Undistributed ordinary income	$	206,429

Capital Loss Carryforward Expiring December 31:


2011	2012	2013
$(65,139)	$(58,001)	$(74,662)

STATEMENT OF OPERATIONS

For the six months ended June 30, 2006 (Unaudited)


INVESTMENT INCOME
Interest	$	831,307
Dividends		8,087
Other income		3,475

		842,869


EXPENSES
Advisory fees		56,443
Administration expenses		18,814
Custodian fees and expenses		1,380
Fund accounting fees and expenses		12,207
Professional fees		7,280
Directors’ fees		2,190
Transfer agent fees		5,491
Other expenses		3,331

		107,136

NET INVESTMENT INCOME / (LOSS)		735,733


REALIZED AND UNREALIZED GAIN / (LOSS)
Net realized gain / (loss) on investments and options		(155,245	)
Net change in unrealized appreciation / (depreciation) on investments and futures contracts		(847,895	)


NET REALIZED AND UNREALIZED GAIN / (LOSS)		(1,003,140	)


NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS	$	(267,407	)

TRANSACTIONS WITH AFFILIATES:


Percent of Current
Net Asset Value
Advisory	Administration	Expense
Fee	Fee	Limit⁽¹⁾	Waiver	Reimbursement

0.30%	0.10%	0.30%	$—	$—


⁽¹⁾		The Adviser has agreed to pay other expenses of the portfolio, other than the advisory fees, to the extent that such expenses exceed the stated percentage of their average net assets.

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

Summit Mutual Funds, Inc. — Pinnacle Series


FINANCIAL STATEMENTS		LEHMAN AGGREGATE BOND INDEX PORTFOLIO

STATEMENTS OF CHANGES IN NET ASSETS


	For the
	Six Months
	Ended June 30,			Year Ended
	(Unaudited)			December 31,
	2006			2005

OPERATIONS
Net investment income / (loss)	$	735,733		$	1,253,198
Net realized gain / (loss) on investments and futures		(155,245	)		(4,812	)
Net change in unrealized appreciation / (depreciation) on investments		(847,895	)		(709,227	)

		(267,407	)		539,159


DISTRIBUTIONS TO SHAREHOLDERS*
Net investment income		(789,627	)		(1,307,757	)

		(789,627	)		(1,307,757	)


FUND SHARE TRANSACTIONS
Proceeds from shares sold		3,624,768			9,717,357
Reinvestment of distributions		789,627			1,307,757
Payments for shares redeemed		(3,455,026	)		(5,384,783	)

		959,369			5,640,331


NET INCREASE / (DECREASE) IN NET ASSETS		(97,665	)		4,871,733
NET ASSETS
Beginning of period		37,657,442			32,785,709

End of period	$	37,559,777		$	37,657,442


ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME	$	152,535		$	206,429


FUND SHARE TRANSACTIONS
Sold		74,927			195,641
Reinvestment of distributions		16,396			26,556
Redeemed		(71,692	)		(108,502	)

Net increase / (decrease) from fund share transactions		19,631			113,695


TOTAL COST OF PURCHASES OF:
Common Stocks	$	1,245,128		$	452,975
U.S. Government Securities		4,071,621			6,515,096
Corporate Bonds		1,444,802			3,827,955

	$	6,761,551		$	10,796,026


TOTAL PROCEEDS FROM SALES OF:
Common Stocks	$	1,663,724			453,506
U.S. Government Securities		3,544,223			4,087,576
Corporate Bonds		1,209,395			897,636

	$	6,417,342		$	5,438,718


*TAX CHARACTER OF DISTRIBUTIONS PAID
Ordinary income	$	789,627		$	1,307,757

	$	789,627		$	1,307,757

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

Summit Mutual Funds, Inc. — Pinnacle Series

NOTES TO FINANCIAL STATEMENTS

June 30, 2006 (Unaudited)

NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES

Summit Mutual Funds, Inc., (“Summit Mutual Funds”), is registered 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 nine 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, and Lehman Aggregate Bond Index Portfolio (individually “Portfolio”, collectively “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, Russell 2000 Small Cap Index Portfolio, Nasdaq-100 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 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 National Market System, are valued at the last sales price as of the close of the New York Stock Exchange on the day the securities are being valued, or, lacking any sales, at the closing bid prices. 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. Money market instruments with a remaining maturity of 60 days or less held in each Portfolio are valued at amortized cost which approximates market value.

Securities transactions and investment income – Securities transactions are recorded on the trade date (the date the order to buy or sell is executed). Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. All amortization of discount and premium is recognized currently under the effective interest method. Gains and losses on sales of investments are calculated on the identified cost basis for financial reporting and tax purposes. Paydown gains and losses on mortgage and asset-backed securities are presented as interest income.

Federal taxes – It is the intent of Summit Mutual Funds to comply with the requirements under Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income and any net realized capital gains. Regulated investment companies owned by the segregated asset accounts of a life insurance company, 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.

Summit Mutual Funds, Inc. — Pinnacle Series

NOTES TO FINANCIAL STATEMENTS

Distributions – Distributions from net investment income in all fixed income Portfolios generally are declared and paid quarterly. Equity Portfolios generally declare and pay dividends annually. Net realized capital gains are distributed periodically, no less frequently than annually. Distributions are recorded on the ex-dividend date. All distributions are reinvested in additional shares of the respective Portfolio at the net asset value per share.

The amount of distributions are 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 either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. Distributions which exceed net investment income and net realized capital gains for financial reporting purposes but not for tax purposes are reported as distributions in excess of net investment income or distributions in excess of net realized capital gains. To the extent they exceed net investment income and net realized capital gains for tax purposes, they are reported as distributions of paid-in-capital.

Expenses – Allocable expenses of Summit Mutual Funds are charged to each 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 that portion of the results of operations resulting from changes in foreign exchange rates on investments from the underlying fluctuation in the securities resulting from market prices. All are included in net realized and unrealized gain or loss for investments.

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

Futures Contracts – 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”) may enter into futures contracts that relate to securities in which it may directly invest and indices composed of such securities and may purchase and write call and put options on such contracts. The Index Portfolios may invest up to 20% of their assets in such futures and/or options, except that until each 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 the Index Portfolios enter into a futures contract, they are required to deposit and maintain as collateral such initial margin as required by the exchange on which the contract is traded. Under terms of the contract, the Index Portfolios agree to receive from or pay to the broker an amount equal to the daily fluctuation in the value of the contract (known as the variation margin). The variation margin is recorded as unrealized gain or loss until the contract expires or is otherwise closed, at which time the gain or loss is realized. The Index Portfolios invest in futures as a substitute to investing in the common stock positions in the Index that they intend to match. The potential risk to the Index Portfolios is that the change in the value in the underlying securities may not correlate to the value of the contracts.

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 its 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 non cash collateral consisting of government securities and irrevocable letters of credit from domestically domiciled banks.

Summit Mutual Funds, Inc. — Pinnacle Series

NOTES TO FINANCIAL STATEMENTS

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.

Administration fees – Summit Mutual Funds pays the Adviser to perform certain administration services. Summit Mutual Funds shall pay the Adviser as full compensation for all facilities and services furnished a fee computed separately for each portfolio of Summit Mutual Funds.

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

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

NOTE 3 — MULTIPLE CLASSES OF SHARES

On October 4, 2005, the Russell 2000 Small Cap Index Portfolio began offering a second class of shares (Class F). The Class F shares are subject to a Distribution and Shareholder Service Plan (“12b-1 Plan”), which was approved by the Funds’ Board of Directors effective August 15, 2005. The 12b-1 Plan provides that each 12b-1 Plan class shall pay to the Series’ Distributor, Ameritas Investment Corp., an affiliate of the advisor, 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 12b-1 Plan class shares. The fee shall be in an amount not to exceed on an annual basis 0.20% of the average daily net asset value of each 12b-1 Plan class. Since the fee is paid out of the assets of the 12b-1 Plan class 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.

Summit Mutual Funds, Inc. — Pinnacle Series

MANAGEMENT OF THE FUND

Directors and Officers

Independent Directors


				Number of
		Term of		Portfolios in	Other
	Position(s)	Office and		Fund Complex	Directorships
	with the	Length of	Principal Occupation(s)	Overseen by	Held by
Name, Age and Address⁽¹⁾	Fund	Time Served	During Past Five Years	Director	Director
Theodore H. Emmerich	Director	Director	Consultant	16	American
(79)	and Chairman	since 1987			Financial Group

Yvonne L. Gray	Director	Director	Chief Operating Officer, United Way	16
(55)		since 1999	of Greater Cincinnati (Social Services
			Provider); prior thereto, Vice President /
			Trust Operations Officer, Fifth Third Bank;
			former Audit Manager, Price Waterhouse
			(Accounting Firm)

Michael K. Keating	Director	Director	Managing Director, Keating Vollmer & Co.	16
(50)		since 2005	LLC (Private Equity Investment Firm)

David C. Phillips	Director	Director	Co-Founder, Cincinnati Works Inc. (Job	16	Meridian Bioscience,
(68)		since 2001	Placement); prior thereto, Chief Executive		Inc.; Cintas, Inc.
			Officer, Downtown Cincinnati Inc. (Economic Revitalization of Cincinnati)

Mary W. Sullivan	Director	Director	Attorney, Peck, Shaffer & Williams LLP	16	Franklin Savings
(49)		since 2001	(Law Firm)		and Loan Co.; First
					Franklin Corporation

Interested Director and Officers


				Number of
		Term of		Portfolios in	Other
	Position(s)	Office and		Fund Complex	Directorships
	with the	Length of	Principal Occupation(s)	Overseen by	Held by
Name, Age and Address⁽¹⁾	Fund	Time Served	During Past Five Years	Director	Director
Steven R. Sutermeister*	Director,	Director	Senior Vice President, Union Central;	16	Carillon Investments,
(52)	President and	since	President and Chief Executive Officer,		Inc.; Summit
	Chief Executive	1999	Adviser.		Investment Partners,
	Officer				Inc.; Union Central
					Mortgage Funding,
					Inc.

John F. Labmeier	Vice President	Officer	Vice President, Associate General Counsel	NA	NA
1876 Waycross Rd	and Secretary	since	and Assistant Secretary, Union Central;
Cincinnati, OH 45240.		1990	Vice President and Secretary, Carillon
(57)			Investments, Inc.; Secretary, Adviser

Thomas G. Knipper	Vice President,	Officer	Chief Compliance Officer, Adviser	NA	NA
(48)	Controller and	since
	Chief Compliance	1995
	Officer

Gerald Q. Herbert	Treasurer	Officer	Treasurer and Director of Finance and	NA	NA
(39)		since	Accounting, Adviser; prior thereto, Controller,
		2005	General Factory Supplies Co.

John M. Lucas	Assistant	Officer	Second Vice President, Counsel and	NA	NA
1876 Waycross Rd.	Secretary	since	Assistant Secretary, Union Central
Cincinnati, OH 45240		1990
(55)


(1)		Except as otherwise indicated, the business of each listed person is 312 Walnut St., Ste. 2500, Cincinnati, OH 45202

*		Mr. Sutermeister may be considered to be an “interested person” of the Fund (within the meaning of the Investment Company Act of 1940) because of his affiliation with the Adviser.

Note		— The Statement of Additional Information includes additional information about fund directors and is available without charge, upon request, by calling 1-877-546-FUND.

The Summit Pinnacle Series is distributed to insurance company separate accounts available in variable annuity and variable universal life insurance products. Summit Pinnacle Series is distributed by Ameritas Investment Corp. Lincoln, Nebraska, Member SIPC.The Pinnacle Series consists of the following Portfolios: Equity Index Accounts S&P 500 Index Portfolio S&P MidCap 400 Index Portfolio Russell 2000 Small Cap Index Portfolio Nasdaq-100 Index Portfolio EAFE International Index Portfolio Fixed Income & Balanced Index Account Balanced Index Portfolio Lehman Aggregate Bond Index Portfolio Managed Accounts Zenith Portfolio Bond Portfolio The Summit Apex Series is a family of Mutual Funds intended for institutional and retail accounts. For more complete information about the Summit Mutual Funds’ Apex Series, including charges and expenses, call 888- 259-7565 for a prospectus. Please read it carefully before you invest or send money. Summit Apex Series is distributed by Quasar Distributors, LLC., Milwaukee, Wisconsin, Member SIPC. The Apex Series consists of the following Funds: Equity Index Accounts Nasdaq-100 Index Fund Managed Accounts Everest Fund Bond Fund Short-term Government Fund High Yield Bond Fund Stable Value Account Money Market Fund Please visit our Website at www.summitfunds.com to learn more about the Summit Mutual Funds.

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Schedule of Investments.

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

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

Not applicable to open-end investment companies.

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

Not applicable to open-end investment companies.

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

Not applicable to open-end investment companies.

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 reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-

		3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)		There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)		(1) Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. 1) Not Applicable to semi-annual reports.

		(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

		(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.

(b)		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished 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 and Chief Executive Officer

Date August 29, 2006

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 and Chief Executive Officer

Date August 29, 2006

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

		Thomas G. Knipper
		Vice President, Controller, and Chief Compliance Officer

Date August 29, 2006

* Print the name and title of each signing officer under his or her signature.