<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
PERFORMANCE SUMMARY
These performance results do not reflect any applicable surrender charges or
contract charges. Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
Unit Value
---------------------------------------------
December 31, June 30, Percentage Change
1999 2000 in Unit Value
---- ---- -------------
<S> <C> <C> <C>
MFS/Sun Life Series Trust
Capital Appreciation Series $ 16.9479 $ 18.0116 6.28 %
Massachusetts Investors Trust Series 11.4626 * 11.5449 0.72 %
Emerging Growth Series 25.8976 25.4669 (1.66)%
Government Securities Series 11.2728 11.7515 4.25 %
Massachusetts Investors Growth Stock Series 12.7854 13.2652 3.75 %
Money Market Series 10.3154 10.6023 2.78 %
Research Series 13.0662 13.9242 6.57 %
Total Return Series 12.0298 12.3704 2.83 %
Utilities Series 13.8242 14.3733 3.97 %
Global Growth Series 20.2495 20.0919 (0.78)%
Fidelity Variable Insurance Products Fund
VIP Equity Income Portfolio 12.9522 12.6064 (2.67)%
VIP Growth Portfolio 19.6258 20.6288 5.11 %
VIP High Income Portfolio 11.0037 10.4705 (4.85)%
VIP Money Market Portfolio 11.7164 12.0610 2.94%
Fidelity Variable Insurance Products Fund II
VIP II Asset Manager: Growth Portfolio 11.9859 11.8308 (1.29)%
VIP II Contrafund Portfolio 17.8118 17.5779 (1.31)%
VIP II Investment Grade Bond Portfolio 10.5374 10.9377 3.80 %
VIP II Index 500 Portfolio 17.8649 17.7608 (0.58)%
Neuberger Berman Advisers Management Trust
Limited Maturity Bond Portfolio 10.9661 11.1774 1.93 %
Mid-Cap Growth Portfolio 17.4307 19.6608 12.79 %
Partners Portfolio 11.8626 11.7981 (0.54)%
J.P. Morgan Series Trust II
J.P. Morgan Bond Portfolio 11.3436 11.6764 2.93 %
J.P. Morgan Equity Portfolio 14.9425 14.7323 (1.41)%
J.P. Morgan Small Company Portfolio 14.8946 14.6270 (1.80)%
Templeton Variable Insurance Products Trust Fund
Templeton Growth Securities Fund : Class 1 12.7976 * 13.0335 1.84 %
Templeton Stock Fund: Class 1 12.5888 - n/a
Dreyfus Variable Investment Fund
Capital Appreciation Portfolio 12.3214 12.6651 2.79 %
Growth and Income Portfolio 11.5479 * 11.4452 (0.89)%
Small Cap Portfolio 10.5506 12.1023 14.71 %
Quality Bond Portfolio 10.2460 10.6063 3.52 %
Dreyfus Stock Index Fund 10.9176 10.8575 (0.55)%
T. Rowe Price Equity Series, Inc.
T. Rowe Price Equity Income Portfolio 10.2471 9.9166 (3.23)%
T. Rowe Price New America Growth Portfolio 11.6010 11.4105 (1.64)%
AIM Variable Insurance Funds, Inc.
AIM V.I. Capital Appreciation Fund 13.9254 * 15.0722 8.24 %
AIM V.I. Value Fund 11.7742 11.7426 (0.27)%
Sun Capital Advisers Trust
Real Estate Fund 9.2632 10.8071 16.67 %
</TABLE>
*Unit Value on the date of the commencement of operations of the Sub-Account.
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENT OF CONDITION -- JUNE 30, 2000
<TABLE>
<CAPTION>
ASSETS:
Investments in Mutual Funds: Shares Cost Value
-------- -------- ---------
<S> <C> <C> <C>
Investments in MFS/Sun Life Series Trust:
Capital Appreciation Series ("CAS") 10,359 $ 481,291 $ 516,396
Massachusetts Investors Trust Series ("CGS") 3,734 142,139 131,954
Emerging Growth Series ("EGS") 26,943 907,033 959,980
Government Securities Series ("GSS") 62,368 785,820 760,267
Massachusetts Investors Growth Stock Series ("MIS") 25,072 369,927 401,902
Money Market Series ("MMS") 1,317,665 1,317,665 1,317,665
Research Series ("RES") 1,101 28,669 28,934
Total Return Series ("TRS") 123,544 2,359,668 2,142,246
Utilities Series ("UTS") 5,249 103,022 97,328
Global Growth Series ("WGO") 152,966 2,788,819 3,227,577
Investments in Fidelity Variable Insurance Products Fund:
VIP Equity Income Portfolio ("FEI") 182,748 4,311,190 4,186,749
VIP Growth Portfolio ("FGP") 153,324 6,583,487 7,902,321
VIP High Income Portfolio ("FHI") 14,323 153,920 143,798
VIP Money Market Portfolio ("FMM") 507,465 507,465 507,465
Investments in Fidelity Variable Insurance Products Fund II:
VIP II Asset Manager: Growth Portfolio ("FAM") 12,337 207,689 200,475
VIP II Contrafund Portfolio ("FCN") 68,062 1,622,659 1,707,687
VIP II Investment Grade Bond Portfolio ("FIG") 38,006 462,039 446,569
VIP II Index 500 Portfolio ("FIP") 49,965 6,756,349 8,189,746
Investments in Neuberger Berman Advisers Management Trust:
Limited Maturity Bond Portfolio ("NLM") 1,130 14,881 14,233
Mid-Cap Growth Portfolio ("NMC") 15,978 419,034 437,795
Partners Portfolio ("NPP") 69,307 1,219,955 1,106,828
Investments in J.P. Morgan Series Trust II
J.P. Morgan Bond Portfolio ("JBP") 282,880 3,213,762 3,216,341
J.P. Morgan Equity Portfolio ("JEP") 19,436 320,806 322,051
J.P. Morgan Small Company Portfolio ("JSC") 16,523 230,774 263,546
Investments in Templeton Variable Insurance Products Trust Fund:
Templeton Growth Securities Fund: Class 1 ("TSF") 100,402 1,311,371 1,331,335
Templeton Stock Fund: Class 1 ("TSF1") - - -
Investments in Dreyfus Variable Investment Fund
Capital Appreciation Portfolio ("DCA") 3,688 147,143 151,151
Growth and Income Portfolio ("DGI") 2,223 57,078 55,980
Small Cap Portfolio ("DSC") 10,106 705,554 768,563
Quality Bond Portfolio ("DQB") 5,811 63,182 63,866
Investments in Dreyfus Stock Index Fund ("DSI") 161,489 5,968,535 6,139,826
Investments in T. Rowe Price Equity Series, Inc.
T. Rowe Price Equity Income Portfolio ("REI") 2,012 36,775 35,657
T. Rowe Price New America Growth Portfolio ("RNA") 4,107 105,167 105,764
Investments in AIM Variable Insurance Funds, Inc.
AIM V.I. Capital Appreciation Fund ("ACA") 4,296 166,031 165,438
AIM V.I. Value Fund ("AVF") 10,921 365,179 364,877
Investments in Sun Capital Advisers Trust
Real Estate Fund ("SRE") 3,867 35,479 40,333
---------------------- -------------------
NET ASSETS: $ 44,269,557 $ 47,452,643
====================== ===================
</TABLE>
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENT OF CONDITION -- JUNE 30, 2000
<TABLE>
<CAPTION>
Net Assets Applicable to Contract Owners: Units Unit Value Value
------ ----------- -----
<S> <C> <C> <C>
CAS 28,670 $ 18.0116 $ 516,396
CGS 11,430 11.5449 131,954
EGS 37,695 25.4669 959,980
GSS 64,695 11.7515 760,267
MIS 30,295 13.2652 401,902
MMS 124,290 10.6023 1,317,665
RES 2,078 13.9242 28,934
TRS 173,174 12.3704 2,142,246
UTS 6,771 14.3733 97,328
WGO 160,641 20.0919 3,227,577
FEI 332,112 12.6064 4,186,749
FGP 383,072 20.6288 7,902,321
FHI 13,733 10.4705 143,798
FMM 32,076 12.0610 386,847
FAM 16,943 11.8308 200,475
FCN 97,149 17.5779 1,707,687
FIG 40,829 10.9377 446,569
FIP 461,112 17.7608 8,189,746
NLM 1,273 11.1774 14,233
NMC 22,267 19.6608 437,795
NPP 93,814 11.7981 1,106,828
JBP 275,457 11.6764 3,216,341
JEP 21,860 14.7323 322,051
JSC 18,018 14.6270 263,546
TSF 102,158 13.0335 1,331,335
TSF1 - - -
DCA 11,934 12.6651 151,151
DGI 4,891 11.4452 55,980
DSC 63,505 12.1023 768,563
DQB 6,021 10.6063 63,866
DSI 565,489 10.8575 6,139,826
REI 3,599 9.9166 35,657
RNA 9,269 11.4105 105,764
ACA 10,976 15.0722 165,438
AVF 31,073 11.7426 364,877
SRE 3,732 10.8071 40,333
----------------------
Net Assets Applicable to Contract Owners 47,332,025
----------------------
Net Assets Applicable to Sponsor 10,000 12.0610 120,618
Total Net Assets $ 47,452,643
======================
</TABLE>
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENT OF OPERATIONS - Six Months Ended June 30, 2000
<TABLE>
<CAPTION>
CAS CGS (a) EGS GSS MIS MMS
INCOME AND EXPENSES: Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income and capital gain distributions
received $ 68,376 $ 8,782 $ 79,948 $ 40,880 $ 11,931 $ 32,998
-------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales $ 60,281 $ 602 $ 68,226 $ 16,021 $ 41,033 $2,190,232
Cost of investments sold 52,410 636 44,426 17,167 33,383 2,190,232
-------------------------------------------------------------------------------
Net realized gains (losses) $ 7,871 $ (34) $ 23,800 $ (1,146) $ 7,650 $ -
-------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on
investments:
End of period $ 35,105 $ (10,185) $ 52,947 $ (25,553) $ 31,975 $ -
Beginning of period 84,962 - 185,881 (13,922) 43,002 -
-------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) $ (49,857) $ (10,185) $ (132,934) $ (11,631) $ (11,027) $ -
-------------------------------------------------------------------------------
Realized and unrealized gains (losses) $ (41,986) $ (10,219) $ (109,134) $ (12,777) $ (3,377) $ -
-------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 26,390 $ (1,437) $ (29,186) $ 28,103 $ 8,554 $ 32,998
===============================================================================
<CAPTION>
RES TRS UTS WGO FEI FGP
INCOME AND EXPENSES: Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income and capital gain distributions
received $ 2,833 $ 194,567 $ 9,222 $ 410,790 $ 250,976 $ 688,293
-------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales $ 392 $ 319,776 $ 7,510 $ 127,017 $ 235,181 $ 205,135
Cost of investments sold 349 380,774 6,611 77,359 238,029 136,099
-------------------------------------------------------------------------------
Net realized gains (losses) $ 43 $ (60,998) $ 899 $ 49,658 $ (2,848) $ 69,036
-------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on
investments:
End of period $ 265 $ (217,422) $ (5,694) $ 438,758 $ (124,441) $1,318,834
Beginning of period 1,570 (150,902) 4,230 909,226 174,537 1,669,520
-------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) $ (1,305) $ (66,520) $ (9,924) $ (470,468) $ (298,978) $ (350,686)
-------------------------------------------------------------------------------
Realized and unrealized gains (losses) $ (1,262) $ (127,518) $ (9,025) $ (420,810) $ (301,826) $ (281,650)
-------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 1,571 $ 67,049 $ 197 $ (10,020) $ (50,850) $ 406,643
===============================================================================
</TABLE>
(a) For the period January 1, 2000 (commencement of operations of Sub-Account)
through June 30, 2000.
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENT OF OPERATIONS - Six Months Ended June 30, 2000 - continued
<TABLE>
<CAPTION>
FHI FMM FAM FCN FIG FIP
INCOME AND EXPENSES: Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income and capital gain distributions
received $ 11,119 $ 14,639 $ 6,039 $ 126,246 $ 30,101 $ 113,242
-------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales $ 66,104 $ 5,969 $ 2,979 $ 24,119 $ 6,613 $ 223,457
Cost of investments sold 73,941 5,969 3,226 18,019 6,970 157,336
-------------------------------------------------------------------------------
Net realized gains (losses) $ (7,837) $ - $ (247) $ 6,100 $ (357) $ 66,121
-------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on
investments:
End of period $ (10,122) $ - $ (7,214) $ 85,028 $ (15,470) $1,433,397
Beginning of period 2,952 - 288 220,588 (2,155) 1,674,973
-------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) $ (13,074) $ - $ (7,502) $ (135,560) $ (13,315) $ (241,576)
-------------------------------------------------------------------------------
Realized and unrealized gains (losses) $ (20,911) $ - $ (7,749) $ (129,460) $ (13,672) $ (175,455)
-------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ (9,792) $ 14,639 $ (1,710) $ (3,214) $ 16,429 $ (62,213)
===============================================================================
<CAPTION>
NLM NMC NPP JBP JEP JSC
INCOME AND EXPENSES: Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income and capital gain distributions
received $ 950 $ 146 $ 241,138 $ 36,377 $ 10,966 $ 9,170
-------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales $ 210 $ 4,183 $ 371,456 $ 105,970 $ 71,846 $ 187,762
Cost of investments sold 220 2,848 482,937 109,972 69,400 123,170
-------------------------------------------------------------------------------
Net realized gains (losses) $ (10) $ 1,335 $ (111,481) $ (4,002) $ 2,446 $ 64,592
-------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on
investments:
End of period $ (648) $ 18,761 $ (113,127) $ 2,579 $ 1,245 $ 32,772
Beginning of period - 7,763 25,537 (45,135) 20,258 109,195
-------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) $ (648) $ 10,998 $ (138,664) $ 47,714 $ (19,013) $ (76,423)
-------------------------------------------------------------------------------
Realized and unrealized gains (losses) $ (658) $ 12,333 $ (250,145) $ 43,712 $ (16,567) $ (11,831)
-------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 292 $ 12,479 $ (9,007) $ 80,089 $ (5,601) $ (2,661)
===============================================================================
</TABLE>
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENT OF OPERATIONS - Six Months Ended June 30, 2000 - continued
<TABLE>
<CAPTION>
TSF (b) TSF1 (c) DCA DGI (a) DSC DQB
INCOME AND EXPENSES: Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income and capital gain distributions
received $ - $ 182,660 $ 8 $ 138 $ 132 $ 923
----------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales $ 950,331 $ 21,052 $ 16,034 $ 1,279 $ 9,130 $ 7,348
Cost of investments sold 941,138 97,815 16,257 1,282 7,280 7,388
----------------------------------------------------------------------------
Net realized gains (losses) $ 9,193 $ (76,763) $ (223) $ (3) $ 1,850 $ (40)
----------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on
investments:
End of period $ 19,964 $ - $ 4,008 $ (1,098) $ 63,009 $ 684
Beginning of period - 105,897 (177) - 6,081 (197)
----------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) $ 19,964 $ (105,897) $ 4,185 $ (1,098) $ 56,928 $ 881
----------------------------------------------------------------------------
Realized and unrealized gains (losses) $ 29,157 $ (182,660) $ 3,962 $ (1,101) $ 58,778 $ 841
----------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 29,157 $ - $ 3,970 $ (963) $ 58,910 $ 1,764
============================================================================
<CAPTION>
DSI REI RNA ACA (a) AVF SRE
INCOME AND EXPENSES: Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income and capital gain distributions
received $ 26,634 $ - $ 56 $ - $ - $ -
----------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales $ 320,002 $ 83,671 $ 959 $ 1,899 $ 5,476 $ 351
Cost of investments sold 292,888 96,602 935 1,924 4,817 354
----------------------------------------------------------------------------
Net realized gains (losses) $ 27,114 $ (12,931) $ 24 $ (25) $ 659 $ (3)
----------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on
investments:
End of period $ 171,291 $ (1,118) $ 597 $ (593) $ (302) $ 4,854
Beginning of period 216,897 (11,151) 1,521 - 3,120 (157)
----------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) $ (45,606) $ 10,033 $ (924) $ (593) $ (3,422) $ 5,011
----------------------------------------------------------------------------
Realized and unrealized gains (losses) $ (18,492) $ (2,898) $ (900) $ (618) $ (2,763) $ 5,008
----------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 8,142 $ (2,898) $ (844) $ (618) $ (2,763) $ 5,008
============================================================================
</TABLE>
(a) For the period January 1, 2000 (commencement of operations of Sub-Account)
through June 30, 2000.
(b) For the period May 1, 2000 (commencement of operations of Sub-Account)
through June 30, 2000.
(c) For the period thru April 30, 2000 (termination of operations of
Sub-Account).
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CAS CGS (a) EGS
Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Ended Year Ended
June 30, December 31, June 30, June 30, December 31,
2000 1999 2000 2000 1999
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 68,376 $ 16,738 $ 8,782 $ 79,948 $ 739
Net realized gains (losses) 7,871 736 (34) 23,800 9,682
Net unrealized gains (losses) (49,857) 69,877 (10,185) (132,934) 179,134
----------------------------------------------------------------
Increase (Decrease) in net assets from operations $ 26,390 $ 87,351 $ (1,437) $ (29,186) $ 189,555
----------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ 30,736 $ 88,046 $ 9,322 $ 244,269 $ 76,314
Net transfers between Sub-Accounts 107,643 59,089 124,662 241,509 216,689
Withdrawals, surrenders, annuitizations and
contract charges (9,791) (9,282) (593) (13,835) (7,146)
----------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $ 128,588 $ 137,853 $ 133,391 $ 471,943 $ 285,857
----------------------------------------------------------------
Increase (Decrease) in net assets $ 154,978 $ 225,204 $ 131,954 $ 442,757 $ 475,412
NET ASSETS:
Beginning of period 361,418 136,214 - 517,223 41,811
----------------------------------------------------------------
End of period $ 516,396 $ 361,418 $ 131,954 $ 959,980 $ 517,223
================================================================
<CAPTION>
GSS MIS MMS
Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 40,880 $ 16,132 $ 11,931 $ - $ 32,998 $ 12,356
Net realized gains (losses) (1,146) (1,137) 7,650 364 - -
Net unrealized gains (losses) (11,631) (20,658) (11,027) 43,002 - -
----------------------------------------------------------------------------
Increase (Decrease) in net assets from operations $ 28,103 $ (5,663) $ 8,554 $ 43,366 $ 32,998 $ 12,356
----------------------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ 75,049 $ 313,310 $ 173,178 $ 111,816 $1,987,558 $ 897,156
Net transfers between Sub-Accounts 24,932 23,430 (2,548) 84,273 (1,843,803) 262,777
Withdrawals, surrenders, annuitizations and
contract charges (14,669) (13,273) (11,968) (4,769) (19,938) (11,439)
----------------------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $ 85,312 $ 323,467 $ 158,662 $ 191,320 $ 123,817 $1,148,494
----------------------------------------------------------------------------
Increase (Decrease) in net assets $ 113,415 $ 317,804 $ 167,216 $ 234,686 $ 156,815 $1,160,850
NET ASSETS:
Beginning of period 646,852 329,048 234,686 - 1,160,850 -
----------------------------------------------------------------------------
End of period $ 760,267 $ 646,852 $ 401,902 $ 234,686 $1,317,665 $1,160,850
============================================================================
</TABLE>
(a) For the period January 1, 2000 (commencement of operations of Sub-Account)
through June 30, 2000.
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS - continued
<TABLE>
<CAPTION>
RES TRS UTS
Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 2,833 $ - $ 194,567 $ 195,833 $ 9,222 $ -
Net realized gains (losses) 43 38 (60,998) (11,756) 899 388
Net unrealized gains (losses) (1,305) 1,570 (66,520) (144,678) (9,924) 4,230
----------------------------------------------------------------------------
Increase (Decrease) in net assets from operations $ 1,571 $ 1,608 $ 67,049 $ 39,399 $ 197 $ 4,618
----------------------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ 11,560 $ 12,837 $ 679,647 $ 872,032 $ 44,874 $ 54,335
Net transfers between Sub-Accounts 2,316 1 (183,945) 96,648 10,147 (6,705)
Withdrawals, surrenders, annuitizations and
contract charges (381) (578) (29,924) (52,973) (7,585) (2,553)
----------------------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $ 13,495 $ 12,260 $ 465,778 $ 915,707 $ 47,436 $ 45,077
----------------------------------------------------------------------------
Increase (Decrease) in net assets $ 15,066 $ 13,868 $ 532,827 $ 955,106 $ 47,633 $ 49,695
NET ASSETS:
Beginning of period 13,868 - 1,609,419 654,313 49,695 -
----------------------------------------------------------------------------
End of period $ 28,934 $ 13,868 $2,142,246 $1,609,419 $ 97,328 $ 49,695
============================================================================
<CAPTION>
WGO FEI FGP
Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 410,790 $ 53,421 $ 250,976 $ 84,128 $ 688,293 $ 289,893
Net realized gains (losses) 49,658 13,086 (2,848) 21,616 69,036 63,936
Net unrealized gains (losses) (470,468) 881,273 (298,978) 50,483 (350,686) 1,138,794
----------------------------------------------------------------------------
Increase (Decrease) in net assets from operations $ (10,020) $ 947,780 $ (50,850) $ 156,227 $ 406,643 $1,492,623
----------------------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ 728,190 $ 743,442 $1,108,332 $1,800,084 $1,173,764 $2,503,859
Net transfers between Sub-Accounts 118,645 20,392 38,994 (445,069) 162,625 (100,061)
Withdrawals, surrenders, annuitizations and
contract charges (54,780) (46,986) (60,029) (111,858) (109,877) (165,490)
----------------------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $ 792,055 $ 716,848 $1,087,297 $1,243,157 $1,226,512 $2,238,308
----------------------------------------------------------------------------
Increase (Decrease) in net assets $ 782,035 $1,664,628 $1,036,447 $1,399,384 $1,633,155 $3,730,931
NET ASSETS:
Beginning of period 2,445,542 780,914 3,150,302 1,750,918 6,269,166 2,538,235
----------------------------------------------------------------------------
End of period $3,227,577 $2,445,542 $4,186,749 $3,150,302 $7,902,321 $6,269,166
============================================================================
</TABLE>
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS - continued
<TABLE>
<CAPTION>
FHI FMM FAM
Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 11,119 $ 16,590 $ 14,639 $ 25,843 $ 6,039 $ -
Net realized gains (losses) (7,837) (3,985) - - (247) (29)
Net unrealized gains (losses) (13,074) 1,376 - - (7,502) 288
----------------------------------------------------------------------------
Increase (Decrease) in net assets from operations $ (9,792) $ 13,981 $ 14,639 $ 25,843 $ (1,710) $ 259
----------------------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ 40,064 $ 96,271 $ - $ 243,917 $ 56,785 $ 6,389
Net transfers between Sub-Accounts (25,210) (125,515) (1) (187,845) 133,543 8,929
Withdrawals, surrenders, annuitizations and
contract charges (5,113) (8,324) (5,968) (14,221) (3,066) (654)
----------------------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $ 9,741 $ (37,568) $ (5,969) $ 41,851 $ 187,262 $ 14,664
----------------------------------------------------------------------------
Increase (Decrease) in net assets $ (51) $ (23,587) $ 8,670 $ 67,694 $ 185,552 $ 14,923
NET ASSETS:
Beginning of period 143,849 167,436 498,795 431,101 14,923 -
----------------------------------------------------------------------------
End of period $ 143,798 $ 143,849 $ 507,465 $ 498,795 $ 200,475 $ 14,923
============================================================================
<CAPTION>
FCN FIG FIP
Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 126,246 $ 21,709 $ 30,101 $ - $ 113,242 $ 77,078
Net realized gains (losses) 6,100 17,346 (357) (65) 66,121 242,668
Net unrealized gains (losses) (135,560) 122,915 (13,315) (2,155) (241,576) 976,661
----------------------------------------------------------------------------
Increase (Decrease) in net assets from operations $ (3,214) $ 161,970 $ 16,429 $ (2,220) $ (62,213) $1,296,407
----------------------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ 179,705 $ 361,996 $ - $ 216,815 $ 487,964 $2,751,116
Net transfers between Sub-Accounts 591,660 (41,751) 12 233,259 (49,611) (208,570)
Withdrawals, surrenders, annuitizations and
contract charges (30,277) (31,364) (6,626) (11,100) (167,193) (234,696)
----------------------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $ 741,088 $ 288,881 $ (6,614) $ 438,974 $ 271,160 $2,307,850
----------------------------------------------------------------------------
Increase (Decrease) in net assets $ 737,874 $ 450,851 $ 9,815 $ 436,754 $ 208,947 $3,604,257
NET ASSETS:
Beginning of period 969,813 518,962 436,754 - 7,980,799 4,376,542
----------------------------------------------------------------------------
End of period $1,707,687 $ 969,813 $ 446,569 $ 436,754 $8,189,746 $7,980,799
============================================================================
</TABLE>
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS - continued
<TABLE>
<CAPTION>
NLM NMC NPP
Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 950 $ 1,845 $ 146 $ - $ 241,138 $ 33,511
Net realized gains (losses) (10) (1,283) 1,335 127 (111,481) (23,884)
Net unrealized gains (losses) (648) (489) 10,998 7,763 (138,664) 74,269
----------------------------------------------------------------------------
Increase (Decrease) in net assets from operations $ 292 $ 73 $ 12,479 $ 7,890 $ (9,007) $ 83,896
----------------------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ - $ 3,519 $ 199,880 $ 36,642 $ 44,201 $ 568,576
Net transfers between Sub-Accounts 14,151 (34,632) 188,200 (2,311) (326,554) (193,236)
Withdrawals, surrenders, annuitizations and
contract charges (210) (741) (3,496) (1,489) (18,121) (43,019)
----------------------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $ 13,941 $ (31,854) $ 384,584 $ 32,842 $ (300,474) $ 332,321
----------------------------------------------------------------------------
Increase (Decrease) in net assets $ 14,233 $ (31,781) $ 397,063 $ 40,732 $ (309,481) $ 416,217
NET ASSETS:
Beginning of period - 31,781 40,732 - 1,416,309 1,000,092
----------------------------------------------------------------------------
End of period $ 14,233 $ - $ 437,795 $ 40,732 $1,106,828 $1,416,309
============================================================================
<CAPTION>
JBP JEP JSC
Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 36,377 $ 38,128 $ 10,966 $ 24,316 $ 9,170 $ 8,658
Net realized gains (losses) (4,002) (3,212) 2,446 2,929 64,592 (3,046)
Net unrealized gains (losses) 47,714 (51,685) (19,013) 15,268 (76,423) 120,407
----------------------------------------------------------------------------
Increase (Decrease) in net assets from operations $ 80,089 $ (16,769) $ (5,601) $ 42,513 $ (2,661) $ 126,019
----------------------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $1,593,125 $ 874,712 $ 37,160 $ 155,378 $ 30,533 $ 175,595
Net transfers between Sub-Accounts (6,501) (25,002) (50,277) (45,294) (137,457) (232,970)
Withdrawals, surrenders, annuitizations and
contract charges (28,245) (48,051) (5,061) (10,709) (5,819) (16,242)
----------------------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $1,558,379 $ 801,659 $ (18,178) $ 99,375 $ (112,743) $ (73,617)
----------------------------------------------------------------------------
Increase (Decrease) in net assets $1,638,468 $ 784,890 $ (23,779) $ 141,888 $ (115,404) $ 52,402
NET ASSETS:
Beginning of period 1,577,873 792,983 345,830 203,942 378,950 326,548
----------------------------------------------------------------------------
End of period $3,216,341 $1,577,873 $ 322,051 $ 345,830 $ 263,546 $ 378,950
============================================================================
</TABLE>
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS - continued
<TABLE>
<CAPTION>
TSF (b) TSF1 (c) DCA
Sub-Account Sub-Account Sub-Account
---------------------------------------------------------------
Six Months Six Months Six Months
Ended Ended Year Ended Ended Year Ended
June 30, June 30, December 31, June 30, December 31,
2000 2000 1999 2000 1999
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ - $ 182,660 $ 49,240 $ 8 $ 716
Net realized gains (losses) 9,193 (76,763) (15,425) (223) 35
Net unrealized gains (losses) 19,964 (105,897) 128,581 4,185 (177)
---------------------------------------------------------------
Increase (Decrease) in net assets from operations $ 29,157 $ - $ 162,396 $ 3,970 $ 574
---------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ 508,525 $ 46,232 $ 305,091 $ 9,375 $ 84,406
Net transfers between Sub-Accounts 801,108 (842,185) (120,364) 77,060 28
Withdrawals, surrenders, annuitizations and
contract charges (7,455) (13,005) (23,726) (14,850) (9,412)
---------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $1,302,178 $ (808,958) $ 161,001 $ 71,585 $ 75,022
---------------------------------------------------------------
Increase (Decrease) in net assets $1,331,335 $ (808,958) $ 323,397 $ 75,555 $ 75,596
NET ASSETS:
Beginning of period - 808,958 485,561 75,596 -
---------------------------------------------------------------
End of period $1,331,335 $ - $ 808,958 $ 151,151 $ 75,596
===============================================================
<CAPTION>
DGI (a) DSC DQB
Sub-Account Sub-Account Sub-Account
---------------------------------------------------------------
Six Months Six Months Six Months
Ended Ended Year Ended Ended Year Ended
June 30, June 30, December 31, June 30, December 31,
2000 2000 1999 2000 1999
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 138 $ 132 $ - $ 923 $ 1,154
Net realized gains (losses) (3) 1,850 (979) (40) 1
Net unrealized gains (losses) (1,098) 56,928 6,081 881 (197)
---------------------------------------------------------------
Increase (Decrease) in net assets from operations $ (963) $ 58,910 $ 5,102 $ 1,764 $ 958
---------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ 7,090 $ 528,438 $ 61,004 $ 29,304 $ 40,487
Net transfers between Sub-Accounts 51,149 137,869 (10,803) 1 -
Withdrawals, surrenders, annuitizations and
contract charges (1,296) (10,180) (1,777) (7,365) (1,283)
---------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $ 56,943 $ 656,127 $ 48,424 $ 21,940 $ 39,204
---------------------------------------------------------------
Increase (Decrease) in net assets $ 55,980 $ 715,037 $ 53,526 $ 23,704 $ 40,162
NET ASSETS:
Beginning of period - 53,526 - 40,162 -
---------------------------------------------------------------
End of period $ 55,980 $ 768,563 $ 53,526 $ 63,866 $ 40,162
===============================================================
</TABLE>
(a) For the period January 1, 2000 (commencement of operations of Sub-Account)
through June 30, 2000.
(b) For the period May 1, 2000 (commencement of operations of Sub-Account)
through June 30, 2000.
(c) For the period thru April 30, 2000 (termination of operations of
Sub-Account).
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS - continued
<TABLE>
<CAPTION>
DSI REI RNA
Sub-Account Sub-Account Sub-Account
----------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 26,634 $ 27,435 $ - $ 3,752 $ 56 $ 1,529
Net realized gains (losses) 27,114 (981) (12,931) (1,032) 24 (719)
Net unrealized gains (losses) (45,606) 216,897 10,033 (11,151) (924) 1,521
----------------------------------------------------------------------------
Increase (Decrease) in net assets from operations $ 8,142 $ 243,351 $ (2,898) $ (8,431) $ (844) $ 2,331
----------------------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $3,205,956 $1,676,584 $ 11,899 $ 42,160 $ 31,189 $ 24,658
Net transfers between Sub-Accounts 392,109 723,185 (55,598) 51,428 49,727 602
Withdrawals, surrenders, annuitizations and
contract charges (69,445) (40,056) (1,216) (1,687) (998) (901)
----------------------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $3,528,620 $2,359,713 $ (44,915) $ 91,901 $ 79,918 $ 24,359
----------------------------------------------------------------------------
Increase (Decrease) in net assets $3,536,762 $2,603,064 $ (47,813) $ 83,470 $ 79,074 $ 26,690
NET ASSETS:
Beginning of period 2,603,064 - 83,470 - 26,690 -
----------------------------------------------------------------------------
End of period $6,139,826 $2,603,064 $ 35,657 $ 83,470 $ 105,764 $ 26,690
============================================================================
<CAPTION>
ACA (a) AVF SRE
Sub-Account Sub-Account Sub-Account
---------------------------------------------------------------
Six Months Six Months Six Months
Ended Ended Year Ended Ended Year Ended
June 30, June 30, December 31, June 30, December 31,
2000 2000 1999 2000 1999
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ - $ - $ 772 $ - $ 236
Net realized gains (losses) (25) 659 58 (3) (5)
Net unrealized gains (losses) (593) (3,422) 3,120 5,011 (157)
---------------------------------------------------------------
Increase (Decrease) in net assets from operations $ (618) $ (2,763) $ 3,950 $ 5,008 $ 74
---------------------------------------------------------------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received $ 66,281 $ 163,888 $ 47,123 $ 26,815 $ 4,497
Net transfers between Sub-Accounts 100,030 147,984 13,399 4,412 (113)
Withdrawals, surrenders, annuitizations and
contract charges (255) (6,769) (1,935) (360) -
---------------------------------------------------------------
Increase (Decrease) in net assets from contract
owner transactions $ 166,056 $ 305,103 $ 58,587 $ 30,867 $ 4,384
---------------------------------------------------------------
Increase (Decrease) in net assets $ 165,438 $ 302,340 $ 62,537 $ 35,875 $ 4,458
NET ASSETS:
Beginning of period - 62,537 - 4,458 -
---------------------------------------------------------------
End of period $ 165,438 $ 364,877 $ 62,537 $ 40,333 $ 4,458
===============================================================
</TABLE>
(a) For the period January 1, 2000 (commencement of operations of Sub-Account)
through June 30, 2000.
See notes to financial statements
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life of Canada (U.S.) Variable Account G (the "Variable Account"), a
separate account of Sun Life Assurance Company of Canada (U.S.) (the "Sponsor"),
was established on July 25, 1996 as a funding vehicle for the variable portion
of certain individual variable life insurance contracts. The Variable Account is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940 as a unit investment trust.
During 2000, the Templeton Stock Fund: Class 1 was closed and the funds were
moved to the Templeton Growth Securities Fund: Class 1.
The assets of the Variable Account are divided into Sub-Accounts. Each
Sub-Account is invested in shares of a single corresponding investment portfolio
of one of the following mutual funds: MFS/Sun Life Series Trust, Fidelity
Variable Insurance Products Fund, Fidelity Variable Insurance Products Fund II,
Neuberger Berman Advisers Management Trust, J.P. Morgan Series Trust II,
Templeton Variable Insurance Products Trust Fund, Dreyfus Variable Investment
Fund, Dreyfus Stock Index Fund, T. Rowe Price Equity Series, Inc., AIM Variable
Insurance Funds, Inc. and Sun Capital Advisers Trust. Massachusetts Financial
Services Company, an affiliate of the Sponsor, is the investment adviser to
MFS/Sun Life Series Trust. Sun Capital Advisers, Inc., an affiliate of the
Sponsor, is the investment adviser to Sun Capital Advisers Trust.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires the Sponsor's
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.
INVESTMENT VALUATIONS
Investments in shares of an investment portfolio of the mutual funds are
recorded at their net asset value. Realized gains and losses on sales of shares
are determined on the identified cost basis. Dividend income and capital gain
distributions received by the Sub-Accounts are reinvested in additional shares
and are recognized on the ex-dividend date.
Exchanges between Sub-Accounts requested by contract owners are recorded in the
new Sub-Account upon receipt of the redemption proceeds.
FEDERAL INCOME TAX STATUS
The operations of the Variable Account are part of the operations of the Sponsor
and are not taxed separately. The Variable Account is not taxed as a regulated
investment company. The Sponsor qualifies for the federal income tax treatment
granted to life insurance companies under Subchapter L of the Internal Revenue
Code. Under existing federal income tax law, investment income and capital gains
earned by the Variable Account on contract owner reserves are not taxable, and
therefore, no provision has been made for federal income taxes.
13
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
NOTES TO FINANCIAL STATEMENTS -- continued
(3) CONTRACT CHARGES
The Sponsor deducts expense charges applied to premium consisting of the premium
tax, the federal DAC (Deferred Acquisition Cost) tax and the sales load. The
premium tax varies by state but in general will range from 2% to 4% of the
premium in most states (Kentucky charges 7%). The DAC tax charge is 1.25% of the
premium. The sales load is 8.75% of the premium up to target premium and 2.25%
of the premium in excess of the target premium. A portion of the sales load is
refunded for surrenders in the first three policy years.
The Sponsor deducts certain charges from the account value of each contract,
through the cancellation of units, on a monthly basis. A monthly expense charge
of $13.75 per policy at the beginning of each month during the first policy year
and $7.50 for months thereafter is deducted to recover certain administration
expenses. The Sponsor also deducts a charge at the end of each policy month for
providing life insurance protection. This charge will be based upon the
Sponsor's expectations of future mortality, persistency, interest rates,
expenses and taxes. However, the maximum rates for the base death benefit for
insureds that are not rated substandard risks will not exceed those based on the
1980 CSO Mortality Tables, and the maximum rates for the APB rider death benefit
for similar insureds will not exceed those based on 125% of the 1980 CSO
Mortality Tables.
The Sponsor deducts certain charges from the account value of each contract,
through the cancellation of units, at the end of each valuation period for the
mortality and expense risks assumed by the Sponsor. The daily deduction is
currently 0.0016389% (which is equivalent to an annual rate of 0.60%) for
policies in their first ten policy years, 0.0005474% (which is equivalent to an
annual rate of 0.20%) for the next ten policy years and 0.0002738% (which is
equivalent to an annual rate of 0.10%) for policies in policy years twenty-one
and beyond.
14
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
NOTES TO FINANCIAL STATEMENTS - continued
(4) UNITS ACTIVITY FROM PARTICIPANT TRANSACTIONS
<TABLE>
<CAPTION>
Units Outstanding Units Transferred Between
Beginning of Period Units Purchased Sub-Accounts
---------------------------------------------------------------------------------------
Six Month Six Month Six Month
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
Sub-Accounts 2000 1999 2000 1999 2000 1999
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CAS 21,325 10,660 1,748 6,528 6,160 4,820
CGS (a) - - 958 - 10,524 -
EGS 19,972 2,838 9,368 4,390 8,887 13,133
GSS 57,382 28,642 6,463 27,845 2,129 2,074
MIS 18,354 - 13,128 10,765 (300) 8,040
MMS 112,538 - 191,074 87,693 (177,419) 25,960
RES 1,061 - 871 1,112 175 -
TRS 133,786 55,937 57,620 74,038 (15,729) 8,235
UTS 3,595 - 3,038 4,370 658 (402)
WGO 120,770 64,502 36,268 57,783 6,749 1,889
FEI 243,225 143,740 90,105 143,020 3,607 (34,888)
FGP 319,434 177,748 59,197 158,594 9,914 (6,477)
FHI 13,073 16,457 3,790 8,913 (2,651) (11,529)
FMM 32,578 28,692 - 21,693 - (16,561)
FAM 1,243 - 4,888 569 11,074 733
FCN 54,448 36,202 10,290 23,174 34,111 (2,910)
FIG 41,448 - - 20,475 - 22,028
FIP 446,730 295,225 26,680 178,054 (2,488) (11,909)
NLM - 2,941 - 325 1,292 (3,198)
NMC 2,337 - 10,203 2,847 9,909 (395)
NPP 119,392 90,519 3,818 48,750 (27,833) (16,164)
JBP 139,098 69,180 139,515 76,407 (695) (2,247)
JEP 23,144 16,179 2,533 11,028 (3,469) (3,276)
JSC 25,442 31,656 2,082 16,256 (9,118) (20,958)
TSF (b) - - 39,143 - 63,591 -
TSF1 (c) 64,260 49,794 3,650 27,536 (66,894) (10,852)
DCA 6,135 - 784 6,907 6,231 -
DGI (a) - - 620 - 4,383 -
DSC 5,073 - 46,806 6,511 12,508 (1,247)
DQB 3,920 - 2,812 4,047 - -
DSI 238,427 - 297,992 171,041 35,544 71,377
REI 8,149 - 975 3,780 (5,402) 4,527
RNA 2,301 - 2,826 2,358 4,231 29
ACA (a) - - 4,398 - 6,596 -
AVF 5,311 - 13,815 4,390 12,513 1,104
SRE 481 - 2,814 494 473 -
Unit Activity
From Sponsor Transactions 10,000 10,000 - - - -
---------------------------------------------------------------------------------------
Total Unit Activity 2,294,432 1,130,912 1,090,272 1,211,693 (60,739) 20,936
=======================================================================================
<CAPTION>
Units Withdrawn,
Surrendered and Canceled Units Outstanding End of
for Contract Charges Period
---------------------------------------------------------
Six Month Six Month
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
Sub-Accounts 2000 1999 2000 1999
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAS (563) (683) 28,670 21,325
CGS (a) (52) - 11,430 -
EGS (532) (389) 37,695 19,972
GSS (1,279) (1,179) 64,695 57,382
MIS (887) (451) 30,295 18,354
MMS (1,903) (1,115) 124,290 112,538
RES (29) (51) 2,078 1,061
TRS (2,503) (4,424) 173,174 133,786
UTS (520) (373) 6,771 3,595
WGO (3,146) (3,404) 160,641 120,770
FEI (4,825) (8,647) 332,112 243,225
FGP (5,473) (10,431) 383,072 319,434
FHI (479) (768) 13,733 13,073
FMM (502) (1,246) 32,076 32,578
FAM (262) (59) 16,943 1,243
FCN (1,700) (2,018) 97,149 54,448
FIG (619) (1,055) 40,829 41,448
FIP (9,810) (14,640) 461,112 446,730
NLM (19) (68) 1,273 -
NMC (182) (115) 22,267 2,337
NPP (1,563) (3,713) 93,814 119,392
JBP (2,461) (4,242) 275,457 139,098
JEP (348) (787) 21,860 23,144
JSC (388) (1,512) 18,018 25,442
TSF (b) (576) - 102,158 -
TSF1 (c) (1,016) (2,218) - 64,260
DCA (1,216) (772) 11,934 6,135
DGI (a) (112) - 4,891 -
DSC (882) (191) 63,505 5,073
DQB (711) (127) 6,021 3,920
DSI (6,474) (3,991) 565,489 238,427
REI (123) (158) 3,599 8,149
RNA (89) (86) 9,269 2,301
ACA (a) (18) - 10,976 -
AVF (566) (183) 31,073 5,311
SRE (36) (13) 3,732 481
Unit Activity
From Sponsor Transactions - - 10,000 10,000
---------------------------------------------------------
Total Unit Activity (51,864) (69,109) 3,272,101 2,294,432
=========================================================
</TABLE>
(a) For the period January 1, 2000 (commencement of operations of Sub-Account)
through June 30, 2000.
(b) For the period May 1, 2000 (commencement of operations of Sub-Account)
through June 30, 2000.
(c) For the period thru April 30, 2000 (termination of operations of
Sub-Account).
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Contract Owners participating in Sun Life of Canada (U.S.) Variable
Account G and the Board of Directors of Sun Life Assurance Company of Canada
(U.S.):
We have audited the accompanying statement of condition of Capital
Appreciation Sub-Account, Massachusetts Investors Trust Sub-Account, Emerging
Growth Sub-Account, Government Securities Sub-Account, Massachusetts
Investors Growth Stock Sub-Account, Money Market Sub-Account, Research
Sub-Account, Total Return Sub-Account, Utilities Sub-Account, Global Growth
Sub-Account, VIP Equity Income Sub-Account, VIP Growth Sub-Account, VIP High
Income Sub-Account, VIP Money Market Sub-Account, VIP II Asset Manager:
Growth Sub-Account, VIP II Contrafund Sub-Account, VIP II Investment Grade
Bond Sub-Account, VIP II Index 500 Sub-Account, Limited Maturity Bond
Sub-Account, Mid-Cap Growth Sub-Account, Partners Sub-Account, J.P. Morgan
Bond Sub-Account, J.P. Morgan Equity Sub-Account, J.P. Morgan Small Company
Sub-Account, Templeton Growth Securities Fund: Class 1 Sub-Account, Templeton
Stock Fund: Class 1 Sub-Account, Capital Appreciation Sub-Account, Growth and
Income Portfolio Sub-Account, Small Cap Sub-Account, Quality Bond
Sub-Account, Dreyfus Stock Index Sub-Account, T. Rowe Price Equity Income
Sub-Account, T. Rowe Price New America Growth Sub-Account, AIM V.I. Capital
Appreciation Sub-Account, AIM V.I. Value Sub-Account and Real Estate
Sub-Account of Sun Life of Canada (U.S.) Variable Account G (the
"Sub-Accounts") as of June 30, 2000, the related statement of operations for
the period then ended and the statements of changes in net assets for the six
months ended June 30, 2000 and the year ended December 31, 1999. These
financial statements are the responsibility of management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities held at June 30,
2000 by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Sub-Accounts at June 30, 2000, the
results of their operations and the changes in their net assets for the
respective stated periods in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 11, 2000
<PAGE>
DIRECTORS AND OFFICERS OF
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, Vice Chairman and Director
JAMES A. McNULTY, III, President and Director
S. CAESAR RABOY, Director
RICHARD B. BAILEY, Director
DAVID D. HORN, Director
GREGORY W. GEE, Director
ANGUS A. MacNAUGHTON, Director
WILLIAM W. STINSON, Director
PETER F. DEMUTH, Vice President,
Chief Counsel and Assistant Secretary
DAVEY S. SCOON, Vice President, Finance
and Treasurer
ELLEN B. KING, Counsel and Secretary
ROBERT P. VROLYK, Vice President and
Actuary
JAMES M.A. ANDERSON, Vice President, Investments
RON FERNANDES, Vice President, Retirement
Product & Services
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
CORPORATE MARKETS:
One Sun Life Executive Park
Wellesley Hills, MA 02481
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park, Wellesley Hills, MA 02481
AUDITORS
Deloitte & Touche LLP
200 Berkeley Street, Boston, Massachusetts 02116
This report is prepared for the general information of contract owners. It is
authorized for distribution to prospective purchasers only when preceded or
accompanied by an effective prospectus.
SUN LIFE CORPORATE VUL-SM-
SEMIANNUAL REPORT - JUNE 30, 2000
PROFESSIONALLY MANAGED LIFE INSURANCE ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
