<PAGE>
[LOGO]
SEMI-ANNUAL REPORT
JUNE 30, 1999
SUN CAPITAL MONEY MARKET FUND
SUN CAPITAL INVESTMENT GRADE BOND FUND
SUN CAPITAL REAL ESTATE FUND
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
- ----------------------------------------------------------------------
MONEY MARKET FUND
During the first half of 1999, money market interest rates, as measured by the
three-month Treasury bill, traded in a range between 4.27% and 4.82%. The yield
on three-month Treasury bills began the year at 4.48%, and briefly declined to
the low end of the range both in mid-January and again in mid-April to 4.28%,
before starting a steady rise to the mid-year close of 4.78%. At the start of
the year, the consensus expectation had been anticipating lower rates premised
on a slowing economy due to the various financial crises during the second half
of last year. However, money market interest rates began rising by late January.
Investor sentiment shifted and started fearing a Federal Reserve tightening of
monetary policy due to stronger than expected economic growth. On June 30, the
Federal Open Market Committee raised the Federal Funds rate by 25 basis points
to 5.0%, but altered its monetary policy from tightening to neutral. This may
indicate that further increases are unlikely this year. At June 30, the Fund had
a seven day yield of 4.41% and an average maturity of 56 days. The portfolio was
97% invested in commercial paper and short-term corporate securities. The year-
to-date return through June 30 was 2.15%, compared to 2.24% for the Merrill
Lynch three-month U.S. Treasury Bill Index.
TOP TEN HOLDINGS
AT JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF NET ASSETS
---------------
<S> <C>
Province of Ontario 5.00% 8/19/1999 4.27%
Pacific Gas & Electric Corp. 6.88% 7/16/1999 4.20%
American General Finance Corp. 5.21% 3/03/2000 4.20%
Associates Corp. of North America 4.86% 8/25/1999 4.20%
Laclede Gas Co. 4.91% 7/08/1999 4.20%
BellSouth Telecommunications 5.02% 7/09/1999 4.19%
Toyota Motor Credit Co. 4.83% 7/16/1999 4.19%
Duke Energy Co. 5.12% 7/16/1999 4.19%
Dupont (E.I.) de Nemours & Co. 4.82% 7/19/1999 4.19%
Export Development Corp. 5.12% 1/18/2000 3.67%
</TABLE>
2
<PAGE>
- ----------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE MONEY MARKET FUND
AND THE MERRILL LYNCH 3-MONTH U.S. TREASURY BILL INDEX*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MERRILL INDEX MONEY MARKET FUND
<S> <C> <C>
12/7/1998 $10,000.00 $10,000.00
12/31/1998 $10,030.00 $10,031.00
1/31/1999 $10,065.61 $10,068.00
2/28/1999 $10,094.50 $10,101.00
3/31/1999 $10,135.99 $10,137.00
4/30/1999 $10,172.78 $10,173.07
5/31/1999 $10,212.35 $10,209.79
6/30/1999 $10,255.04 $10,246.25
</TABLE>
CUMULATIVE TOTAL RETURNS**
<TABLE>
<CAPTION>
SIX MONTHS ENDED LIFE OF
JUNE 30, 1999 FUND***
---------------- -------
<S> <C> <C>
Money Market Fund....................... 2.15% 2.46%
Merrill Lynch 3-month U.S. Treasury Bill
Index*................................ 2.24% 2.55%
</TABLE>
*The performance data of the index has been prepared from sources and data that
the investment adviser believes to be reliable, but no representation is made as
to their accuracy. The index is unmanaged and has no fees or costs. The Merrill
Lynch three-month U.S. Treasury Bill Index is a one-security index which at the
beginning of every month selects for inclusion the U.S. Treasury Bill maturing
close to but not beyond 91 days from that date. That issue is then held for one
month, sold and rolled into the new U.S. Treasury Bill.
**Performance data is historical and includes changes in share price and
reinvestment of income dividends and capital gains distributions. Past
performance does not indicate future results. Performance numbers are net of all
operating expenses, but do not include any insurance charges imposed in
connection with your variable insurance contract. If this performance
information included the effect of the insurance charges, performance numbers
would be lower. The value of an investment in the Money Market Fund and the
return on the investment will fluctuate and redemption proceeds may be higher or
lower than an investor's original cost. The investment adviser reduced its
management fee and certain other expenses; otherwise returns would have been
lower.
***For the period from December 7, 1998 (commencement of operations) to June 30,
1999.
3
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
- ----------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
Ongoing strength in the economy, with few signs of a meaningful slowdown, pushed
interest rates steadily higher through most of the first half of 1999. The year
began with the outlook that interest rates would fall. An expected outcome of
the second half 1998 financial crisis was a slowing economy or potential
recession. This view on interest rates was quickly reversed. Economic growth
exceeded expectations, and by early February interest rates began rising. By
early in the second quarter, the Federal Reserve began sending overt signals of
their intent to move preemptively against an overheated economy and a buildup of
rising inflation expectations. With little surprise, at their Federal Open
Market Committee meeting on June 30, the Federal Reserve announced a hike in the
Federal Funds rate by 25 basis points to 5.0%. At June 30, the ten-year Treasury
note yield was 5.79%, up from 4.64% at year-end. With most interest rates up
approximately 100 basis points year-to-date, the bond market could have a far
greater impact on braking the economy than the recent Federal Reserve action.
The Fund's total return for the six months ended June 30 was (0.48%), well ahead
of the Lehman Brothers Aggregate Bond Index return of (1.37%). These favorable
relative investment results were earned by focusing on sector and specific issue
selection to generate attractive investments and yield for the fund, while
generally matching the interest rate risk of the Lehman Aggregate Index. The
Fund's concentrated focus on the corporate sector of the bond market during this
period was particularly beneficial. The strong economy and rising corporate
earnings led to solid relative performance from this market sector. At June 30,
10.9% of the Fund was rated below investment grade and the average rating of the
Fund's holdings was AA. The interest rate exposure of the Fund closely mirrored
the Lehman Aggregate Index.
<TABLE>
<S> <C> <C> <C>
TOP TEN BOND ISSUERS TOP FIVE SECTORS
AT JUNE 30, 1999 AT JUNE 30, 1999
- -------------------------------------------------------------------------------------------
% OF NET ASSETS % OF NET ASSETS
--------------- ---------------
U.S. Treasury 14.60% U.S. Govt. & Agency Oblig. 41.4%
Federal National Mortgage Assn. 11.07% Electric Utilities 11.0%
Federal Home Loan Mortgage Assn. 8.35% Asset Backed 10.3%
Government National Mortgage Assn. 7.33% Transportation 7.6%
Discover Card Master Trust I 2.40% Telecommunications 5.4%
CARCO Auto Loan Master Trust 2.39%
Peco Energy Transition Trust 2.29%
News America Holdings, Inc. 2.02%
Continental Airlines, Inc. 2.00%
California Infrastructure 1.98%
Development
</TABLE>
4
<PAGE>
- ----------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN INVESTMENT GRADE BOND
FUND AND THE LEHMAN BROTHERS AGGREGATE BOND INDEX*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN INV GRADE BOND FUND
<S> <C> <C>
12/7/1998 $10,000.00 $10,000.00
12/31/1998 $10,025.04 $10,004.15
1/31/1999 $10,096.59 $10,121.20
2/28/1999 $9,920.34 $9,967.36
3/31/1999 $9,975.31 $10,045.10
4/30/1999 $10,006.91 $10,073.38
5/31/1999 $9,919.26 $9,968.18
6/30/1999 $9,887.66 $9,955.74
</TABLE>
CUMULATIVE TOTAL RETURNS**
<TABLE>
<CAPTION>
SIX MONTHS ENDED LIFE OF
JUNE 30, 1999 FUND***
---------------- -------
<S> <C> <C>
Investment Grade Bond Fund.............. (0.48)% (0.44)%
Lehman Brothers Aggregate Bond Index*... (1.37)% (1.12)%
</TABLE>
*The performance data of the index has been prepared from sources and data that
the investment adviser believes to be reliable, but no representation is made as
to their accuracy. The index is unmanaged and has no fees or costs. The Lehman
Brothers Aggregate Bond Index is composed of securities from the Lehman Brothers
Government/Corporate Bond Index, the Mortgage-Backed Securities Index and the
Asset-Backed Securities Index.
**Performance data is historical and includes changes in share price and
reinvestment of income dividends and capital gains distributions. Past
performance does not indicate future results. Performance numbers are net of all
operating expenses, but do not include any insurance charges imposed in
connection with your variable insurance contract. If this performance
information included the effect of the insurance charges, performance numbers
would be lower. The value of an investment in the Investment Grade Bond Fund and
the return on the investment will fluctuate and redemption proceeds may be
higher or lower than an investor's original cost. The investment adviser reduced
its management fee and certain other expenses; otherwise returns would have been
lower.
***For the period from December 7, 1998 (commencement of operations) to June 30,
1999.
5
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
- ----------------------------------------------------------------------
REAL ESTATE FUND
During the first half of 1999 the Fund posted a total return of +4.57%. This
compares with a +4.62% return for the Morgan Stanley Real Estate Investment
Trust Index for the same period. For the three months ended June 30, 1999, the
Fund posted a total return of +10.87%. This compares with a +9.91% return for
the Morgan Stanley Real Estate Investment Trust Index for the same period. The
Fund outperformed the Index during the second quarter of 1999 primarily due to
the outperformance of certain individual holdings, including Centerpoint
Properties (industrial), First Industrial (industrial), Highwoods (office),
Reckson Associates (office), AvalonBay (apartment), BRE Properties (apartment),
Developers Diversified (retail), and Macerich (retail). We continue to believe
these stocks are attractive holdings.
During April and May, there was a significant rotation by investors from growth
stocks into value stocks, and from technology stocks into industrial and
cyclical stocks. REITs benefited from this rotation, as evidenced by the first
net inflows into REIT mutual funds in a long time. While this momentum into the
sector ebbed a bit in June, we believe that interest in the sector should
continue, as there are still significant valuation differences between REITs and
other markets.
We continue to look for moderate capital appreciation for REIT stocks in 1999;
keeping pace with expected funds from operations (FFO) growth in the high single
digits. REITs delivered in excess of 10% year-over-year growth, on average, for
the quarter ended June 30, 1999. Occupancy levels remained high for most
companies, and most REITs have also been able to secure significant rent level
increases on expiring leases. Current market conditions, with capital scarce and
expensive, dictate closer scrutiny of several other factors as we continue to
formulate our strategy, including financial strength and availability of
capital, property management abilities, stock repurchase programs, and potential
mergers and acquisition activity.
<TABLE>
<S> <C> <C> <C>
TOP TEN ISSUERS TOP FIVE PROPERTY TYPES
AT JUNE 30, 1999 AT JUNE 30, 1999
- -------------------------------------------------------------------------------------------
% OF NET ASSETS % OF NET ASSETS
--------------- ---------------
AvalonBay Communities, Inc. 7.44% Office 26.9%
SL Green Realty Corp. 5.96% Apartments 20.3%
Equity Office Properties Trust 5.92% Regional Malls 12.8%
Kimco Realty Corp. 5.88% Warehouse & Industrial 12.7%
Public Storage, Inc. 5.55% Shopping Centers 12.4%
Reckson Associates Realty Corp. 4.72%
ProLogis Trust 4.60%
CBL & Associates Properties, Inc. 4.51%
Equity Residential Properties Trust 4.49%
BRE Properties, Inc. 4.28%
</TABLE>
6
<PAGE>
- ----------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE REAL ESTATE FUND
AND THE MORGAN STANLEY REIT INDEX*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MORGAN STANLEY REIT INDEX REAL ESTATE FUND
<S> <C> <C>
12/7/1998 $10,000.00 $10,000.00
12/31/1998 $9,773.77 $9,929.44
1/31/1999 $9,510.86 $9,606.85
2/28/1999 $9,354.88 $9,465.73
3/31/1999 $9,303.43 $9,364.92
4/30/1999 $10,203.07 $10,241.94
5/31/1999 $10,419.37 $10,594.76
6/30/1999 $10,225.57 $10,383.06
</TABLE>
CUMULATIVE TOTAL RETURNS**
<TABLE>
<CAPTION>
SIX MONTHS ENDED LIFE OF
JUNE 30, 1999 FUND***
---------------- -------
<S> <C> <C>
Real Estate Fund........................ 4.57% 3.83%
Morgan Stanley REIT Index*.............. 4.62% 2.26%
</TABLE>
*The performance data of the index has been prepared from sources and data that
the investment adviser believes to be reliable, but no representation is made as
to their accuracy. The index is unmanaged and has no fees. The Morgan Stanley
REIT Index is a total-return index comprised of the most actively traded real
estate investment trusts and is designed to be a measure of real estate equity
performance.
**Performance data is historical and includes changes in share price and
reinvestment of income dividends and capital gains distributions. Past
performance does not indicate future results. Performance numbers are net of all
operating expenses, but do not include any insurance charges imposed in
connection with your variable insurance contract. If this performance
information included the effect of the insurance charges, performance numbers
would be lower. The value of an investment in the Real Estate Fund and the
return on the investment will fluctuate and redemption proceeds may be higher or
lower than an investor's original cost. The investment adviser reduced its
management fee and certain other expenses; otherwise returns would have been
lower.
***For the period from December 7, 1998 (commencement of operations) to June 30,
1999.
7
<PAGE>
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
COMMERCIAL PAPER - 85.8%
American Express Credit Corp.
4.87%, 7/30/99........................ $ 103 $ 103,000
American General Finance Corp.
5.21%, 3/03/00........................ 200 200,000
Associates Corp. of North America
4.86%, 8/25/99........................ 200 200,000
BellSouth Telecommunications, Inc.
5.02%, 7/09/99........................ 200 199,777
Canadian Wheat Board
4.80%, 7/22/99........................ 94 93,737
5.10%, 7/15/99........................ 100 99,802
Caterpillar Financial Services NV
4.78%, 8/13/99........................ 150 149,144
Coca-Cola Co.
4.78%, 8/20/99........................ 150 149,004
DaimlerChrysler NA
4.79%, 9/03/99........................ 129 127,901
Duke Energy Co.
5.12%, 7/16/99........................ 200 199,573
Dupont (E. I.) de Nemours & Co.
4.82%, 7/19/99........................ 200 199,518
Export Development Corp.
5.12%, 1/18/00........................ 180 174,854
Ford Motor Credit Corp.
4.81%, 7/06/99........................ 145 145,000
General Electric Capital Corp.
4.83%, 7/06/99........................ 130 130,000
General Motors Acceptance Corp.
4.79%, 8/09/99........................ 124 123,509
Government of Canada
4.94%, 9/08/99........................ 100 99,053
Household Finance Corp.
4.79%, 7/28/99........................ 109 108,619
4.90%, 8/05/99........................ 100 100,000
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
IBM Credit Corp.
4.73%, 8/09/99........................ $ 130 $ 129,334
Laclede Gas Co.
4.91%, 7/08/99........................ 200 199,809
Lucent Technologies, Inc.
4.81%, 7/28/99........................ 175 174,369
Norwest Financial, Inc.
4.79%, 8/19/99........................ 150 150,000
Province of British Columbia
4.75%, 10/08/99....................... 145 143,106
Province of Ontario
5.00%, 8/19/99........................ 205 203,605
Province of Quebec
4.78%, 9/13/99........................ 135 133,674
Schering Corp.
4.74%, 7/21/99........................ 150 149,605
Toyota Motor Credit Co.
4.83%, 7/16/99........................ 200 199,597
-----------
Total Commercial Paper
(amortized cost $4,085,590)........... 4,085,590
-----------
CORPORATE BONDS - 11.4%
Commercial Credit Co.
6.75%, 5/15/00........................ 140 141,310
Pacific Gas & Electric Corp.
6.88%, 7/16/99........................ 200 200,087
Texas Instruments, Inc.
6.75%, 7/15/99........................ 100 100,061
Wisconsin Electric Power Co.
6.63%, 8/01/99........................ 100 100,112
-----------
Total Corporate Bonds
(amortized cost $541,570)............. 541,570
-----------
MUTUAL FUNDS - 3.1%
SSGA Money Market Fund
(amortized cost $150,937)............. 151 150,937
-----------
TOTAL INVESTMENTS - 100.3%
(cost $4,778,097)..................... 4,778,097
Other assets less
liabilities - (0.3%).................. (15,245)
-----------
NET ASSETS - 100.0%..................... $ 4,762,852
-----------
-----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
8
<PAGE>
INVESTMENT GRADE BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
ASSET BACKED SECURITIES - 10.3%
California Infrastructure Development
6.42%, 9/25/08........................ $250 $ 248,623
CARCO Auto Loan Master Trust
6.69%, 8/15/04........................ 300 300,537
Discover Card Master Trust I
6.79%, 4/16/10........................ 300 300,945
Green Tree Recreational, Equipment &
Consolidated Trust
5.55%, 2/15/18........................ 165 162,378
Peco Energy Transition Trust
6.05%, 3/01/09........................ 300 287,343
-----------
Total Asset Backed Securities
(cost $1,332,383)..................... 1,299,826
-----------
CORPORATE DEBT OBLIGATIONS - 45.3%
AEROSPACE - 1.3%
Northrop Grumman Corp.
9.38%, 10/15/24....................... 150 159,140
-----------
APPLIANCES - 0.4%
Whirlpool Corp.
9.10%, 2/01/08........................ 50 55,154
-----------
AUTOMOTIVE - 1.7%
Federal Mogul Corp.
7.50%, 7/01/04........................ 100 96,930
Lear Corp.
7.96%, 5/15/05 (1).................... 125 120,938
-----------
217,868
-----------
BROADCASTING/MEDIA - 4.6%
Lenfest Communications, Inc.
8.38%, 11/01/05....................... 100 104,443
News America Holdings, Inc.
8.00%, 10/17/16....................... 250 253,812
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
Time Warner Entertainment Co.
10.15%, 5/01/12....................... $175 $ 215,212
-----------
573,467
-----------
CONSTRUCTION MATERIALS - 0.4%
Owens Corning
7.50%, 5/01/05........................ 50 49,199
-----------
ELECTRIC UTILITIES - 11.0%
CalEnergy Co., Inc.
8.48%, 9/15/28........................ 100 106,718
Cleveland Electric Illuminating Co.
9.00%, 7/01/23........................ 200 216,234
CMS Energy Corp.
8.38%, 7/01/03........................ 150 149,553
Connecticut Light & Power Co.
7.88%, 10/01/24....................... 200 208,716
El Paso Electric Co.
9.40%, 5/01/11........................ 217 240,312
Houston Lighting & Power Co.
8.75%, 3/01/22........................ 125 129,167
Niagara Mohawk Power Corp.
9.50%, 3/01/21........................ 55 58,267
9.95%, 6/01/00........................ 125 128,334
Salton Sea Funding Corp.
6.69%, 5/30/00........................ 144 144,749
-----------
1,382,050
-----------
FINANCIAL - 4.9%
Case Credit Corp.
6.12%, 8/01/01........................ 200 198,028
Lloyds Bank PLC
5.25%, 11/29/49....................... 250 211,740
WMC Finance USA Ltd.
6.50%, 11/15/03....................... 210 205,955
-----------
615,723
-----------
HOTELS & RESTAURANTS - 0.8%
Tricon Global Restaurants, Inc.
7.45%, 5/15/05........................ 100 99,805
-----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
9
<PAGE>
INVESTMENT GRADE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
CORPORATE DEBT
OBLIGATIONS (CONT'D)
OIL SERVICES - 1.2%
Petroleum Geo-Services ASA
7.50%, 3/31/07........................ $150 $ 149,664
-----------
PAPER - 0.9%
Georgia-Pacific Group
9.95%, 6/15/02........................ 100 108,841
-----------
RETAIL - 2.5%
Rite Aid Corp.
6.70%, 12/15/01....................... 100 99,507
Saks, Inc.
8.25%, 11/15/08....................... 200 210,268
-----------
309,775
-----------
REAL ESTATE - 1.5%
Simon Property Group LP
6.75%, 6/15/05........................ 200 191,008
-----------
STEEL - 1.1%
AK Steel Corp.
7.88%, 2/15/09 (1).................... 150 144,000
-----------
TELECOMMUNICATIONS - 5.4%
Cable & Wireless Communications Plc
6.63%, 3/06/05........................ 250 245,867
GTE North, Inc.
9.60%, 1/01/21........................ 175 191,363
Panamsat Corp.
6.13%, 1/15/05........................ 150 139,878
Qwest Communications International, Inc.
7.50%, 11/01/08....................... 100 99,988
-----------
677,096
-----------
TRANSPORTATION - 7.6%
Amerco
7.20%, 4/01/02........................ 150 147,782
Continental Airlines, Inc.
7.57%, 3/15/20........................ 250 251,652
Federal Express Corp. Trust
6.72%, 1/15/22........................ 70 66,789
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
Union Pacific Corp.
6.79%, 11/09/07....................... 200 $ 193,224
7.38%, 5/15/01........................ 50 50,801
US Airways, Inc.
6.85%, 1/30/18........................ 250 238,890
-----------
949,138
-----------
Total Corporate Debt Obligations
(cost $5,824,755)..................... $ 5,681,928
-----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 41.4%
Federal Home Loan Mortgage
6.00%, 2/01/29........................ $302 283,796
6.50%, 12/01/28....................... 502 484,948
8.60%, 4/15/21........................ 175 181,179
9.00%, 11/01/06....................... 95 98,644
Federal National Mortgage Assn.
6.00%, 12/01/13....................... 482 465,774
6.40%, 5/14/09........................ 350 339,118
7.00%, 6/01/29........................ 500 494,215
9.50%, 6/01/03........................ 88 90,422
Government National Mortgage Assn.
6.50%, 12/15/28....................... 502 482,801
7.00%, 2/15/28........................ 444 437,837
U.S. Treasury Bonds
5.25%, 11/15/28....................... 225 199,442
6.63%, 2/15/27........................ 425 448,838
U.S. Treasury Notes
5.50%, 5/31/03........................ 500 496,170
7.00%, 7/15/06........................ 650 688,493
-----------
Total U.S. Government & Agency
Obligations
(cost $5,346,622)..................... 5,191,677
-----------
FOREIGN GOVERNMENT OBLIGATION - 0.8%
Republic of Philippines
8.88%, 4/15/08
(cost $98,499)........................ 100 97,304
-----------
SHORT TERM INVESTMENTS - 1.5%
MUTUAL FUNDS - 1.5%
SSGA Money Market Fund
(amortized cost $192,218)............. 192 192,218
-----------
TOTAL INVESTMENTS - 99.3%
(cost $12,794,477).................... 12,462,953
Other assets less liabilities - 0.7%.... 89,213
-----------
NET ASSETS - 100.0%..................... $12,552,166
-----------
-----------
</TABLE>
(1) Exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At June 30, 1999 these
securities amounted to $264,938, representing 2.1% of net assets.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
10
<PAGE>
REAL ESTATE FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS - 98.4%
APARTMENTS - 20.3%
Apartment Investment & Management Co.... 5,456 $ 233,244
AvalonBay Communities, Inc.............. 11,490 425,130
BRE Properties, Inc..................... 9,420 244,331
Equity Residential Properties Trust..... 5,696 256,676
-----------
1,159,381
-----------
DIVERSIFIED - 1.8%
Franchise Finance Corp. of America...... 4,564 100,408
-----------
HOTELS - 6.0%
Host Marriott Corp...................... 18,994 225,554
MeriStar Hospitality Corp............... 5,191 116,473
-----------
342,027
-----------
OFFICE - 26.9%
Equity Office Properties Trust.......... 13,203 338,327
Highwoods Properties, Inc............... 6,357 174,420
Mack-Cali Realty Corp................... 6,966 215,511
Reckson Associates Realty Corp.......... 11,473 269,615
SL Green Realty Corp.................... 16,656 340,407
Spieker Properties, Inc................. 5,152 200,284
-----------
1,538,564
-----------
REGIONAL MALLS - 12.8%
CBL & Associates Properties, Inc........ 9,759 257,394
General Growth Properties, Inc.......... 6,301 223,685
Macerich Co............................. 5,169 135,686
Simon Property Group, Inc............... 4,418 112,107
-----------
728,872
-----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
SHOPPING CENTERS - 12.4%
Developers Diversified Realty Corp...... 9,086 $ 151,055
IRT Property Co......................... 22,518 222,365
Kimco Realty Corp....................... 8,588 336,006
-----------
709,426
-----------
STORAGE - 5.5%
Public Storage, Inc..................... 11,328 317,184
-----------
WAREHOUSE & INDUSTRIAL - 12.7%
CenterPoint Properties Corp............. 5,966 218,505
First Industrial Realty Trust, Inc...... 4,560 125,115
ProLogis Trust.......................... 12,974 262,723
Weeks Corp.............................. 3,904 119,072
-----------
725,415
-----------
Total Real Estate Investment Trusts
(cost $5,555,222)..................... 5,621,277
-----------
SHORT TERM INVESTMENTS - 0.9%
MUTUAL FUNDS - 0.9%
SSGA Money Market Fund
(amortized cost $49,587).............. 49,587 49,587
-----------
TOTAL INVESTMENTS - 99.3%
(cost $5,604,809)..................... 5,670,864
Other assets less liabilities - 0.7%.... 39,524
-----------
NET ASSETS - 100.0%..................... $ 5,710,388
-----------
-----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
11
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUN CAPITAL SUN CAPITAL SUN CAPITAL
MONEY MARKET INVESTMENT GRADE REAL ESTATE
FUND BOND FUND FUND
------------- ----------------- ------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at
value (cost $4,778,097,
$12,794,477 and $5,604,809
respectively).................. $4,778,097 $12,462,953 $5,670,864
Cash............................. 500 914 500
Interest receivable.............. 17,947 168,615 264
Dividends receivable............. -- -- 41,447
Receivable for Fund shares
sold........................... 2,201 24,681 --
Receivable due from adviser...... 13,466 23,303 8,084
Other assets..................... 7,222 28,891 14,446
------------- ----------------- ------------
Total assets..................... 4,819,433 12,709,357 5,735,605
------------- ----------------- ------------
LIABILITIES
Payable for investment securities
purchased...................... -- 128,455 --
Payable for Fund shares
redeemed....................... 34,492 34 1,240
Accrued expenses................. 22,089 28,702 23,977
------------- ----------------- ------------
Total liabilities................ 56,581 157,191 25,217
------------- ----------------- ------------
NET ASSETS......................... $4,762,852 $12,552,166 $5,710,388
------------- ----------------- ------------
------------- ----------------- ------------
COMPOSITION OF NET ASSETS
Paid-in capital.................. $4,762,979 $12,953,983 $5,534,983
Undistributed net investment
income (loss).................. -- -- 133,095
Accumulated net realized gain
(loss) on investments.......... (127) (70,293) (23,745)
Net unrealized appreciation
(depreciation) of
investments.................... -- (331,524) 66,055
------------- ----------------- ------------
$4,762,852 $12,552,166 $5,710,388
------------- ----------------- ------------
------------- ----------------- ------------
Shares of beneficial interest
outstanding.................... 4,762,979 1,302,426 554,322
------------- ----------------- ------------
------------- ----------------- ------------
Net asset value, offering price
and redemption price per share
(net assets/shares of
beneficial interest
outstanding)................... $ 1.00 $ 9.64 $ 10.30
------------- ----------------- ------------
------------- ----------------- ------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
12
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUN CAPITAL SUN CAPITAL SUN CAPITAL
MONEY MARKET INVESTMENT GRADE REAL ESTATE
FUND BOND FUND FUND
------------- ----------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest......................... $81,297 $ 353,385 $ 1,736
Dividends........................ -- -- 162,930
------------- ----------------- ------------
Total investment income.......... 81,297 353,385 164,666
------------- ----------------- ------------
EXPENSES
Investment advisory fee.......... 8,231 32,287 24,393
Custody and fund accounting...... 7,564 9,863 9,564
Audit............................ 2,947 2,747 2,747
Legal............................ 9,631 29,431 12,431
Printing......................... 6,441 6,441 6,441
Administrative................... 10,822 10,822 10,822
Transfer agency.................. 3,176 3,176 2,976
Trustees fees.................... 6,259 6,259 6,259
Insurance........................ 1,765 7,061 3,531
Miscellaneous fees............... 250 258 249
------------- ----------------- ------------
Total expenses................... 57,086 108,345 79,413
------------- ----------------- ------------
Less: Waiver of advisory fees.... (8,231) (32,287) (24,393)
Reimbursement of operating
expenses.................. (38,158) (35,699) (22,924)
------------- ----------------- ------------
Net expenses..................... 10,697 40,359 32,096
------------- ----------------- ------------
Net investment income............ 70,600 313,026 132,570
------------- ----------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on
investment transactions........ (100) (70,648) (23,745)
Net change in unrealized
appreciation (depreciation) of
investments.................... -- (305,011) 143,282
------------- ----------------- ------------
Net realized and unrealized gain
(loss) on investments.......... (100) (375,659) 119,537
------------- ----------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS............. $70,500 $ (62,633) $252,107
------------- ----------------- ------------
------------- ----------------- ------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
13
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET FUND INVESTMENT GRADE BOND FUND REAL ESTATE FUND
--------------------------------- --------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED ENDED PERIOD ENDED ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998* (UNAUDITED) 1998* (UNAUDITED) 1998*
------------- ----------------- ------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS
Net investment
income............... $ 70,600 $ 7,681 $ 313,026 $ 34,216 $ 132,570 $ 40,930
Net realized gain
(loss) on investment
transactions......... (100) (27) (70,648) 355 (23,745) (397)
Net unrealized
appreciation
(depreciation) of
investments.......... -- -- (305,011) (26,513) 143,282 (77,227)
------------- ----------------- ------------- ----------------- ------------- -----------------
Net increase (decrease)
in net assets from
operations........... 70,500 7,654 (62,633) 8,058 252,107 (36,694)
------------- ----------------- ------------- ----------------- ------------- -----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income............... (70,600) (7,681) (313,026) (34,216) -- (40,008)
------------- ----------------- ------------- ----------------- ------------- -----------------
SHARE TRANSACTIONS
Net proceeds from
sales................ 3,099,998 2,462,000 2,720,746 9,987,996 561,947 4,976,999
Net proceeds from
reinvestment of
distributions........ 70,600 7,680 313,026 34,215 40,008 --
Cost of shares
redeemed............. (917,299) -- (132,000) -- (73,971) --
------------- ----------------- ------------- ----------------- ------------- -----------------
Net increase in net
assets from share
transactions......... 2,253,299 2,469,680 2,901,772 10,022,211 527,984 4,976,999
------------- ----------------- ------------- ----------------- ------------- -----------------
Total increase in net
assets............... 2,253,199 2,469,653 2,526,113 9,996,053 780,091 4,900,297
NET ASSETS
Beginning of period.... 2,509,653 40,000 10,026,053 30,000 4,930,297 30,000
------------- ----------------- ------------- ----------------- ------------- -----------------
End of period(1)....... $4,762,852 $2,509,653 $12,552,166 $10,026,053 $5,710,388 $4,930,297
------------- ----------------- ------------- ----------------- ------------- -----------------
------------- ----------------- ------------- ----------------- ------------- -----------------
SHARES OF BENEFICIAL
INTEREST
Shares sold............ 3,099,998 2,462,000 278,650 998,807 57,281 497,721
Shares issued to
shareholders from
reinvestment of
distributions........ 70,600 7,680 31,903 3,431 4,033 --
Shares redeemed........ (917,299) -- (13,365) -- (7,713) --
------------- ----------------- ------------- ----------------- ------------- -----------------
Net Increase........... 2,253,299 2,469,680 297,188 1,002,238 53,601 497,721
------------- ----------------- ------------- ----------------- ------------- -----------------
------------- ----------------- ------------- ----------------- ------------- -----------------
(1) Includes
undistributed net
income of.............. -- -- -- -- $ 133,095 $ 525
</TABLE>
* For the period from December 7, 1998 (commencement of operations) to
December 31, 1998.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
14
<PAGE>
FINANCIAL HIGHLIGHTS
SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout the period:
<TABLE>
<CAPTION>
SUN CAPITAL
MONEY MARKET FUND
------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 (UNAUDITED) DECEMBER 31, 1998*
-------------------------- -------------------
<S> <C> <C>
Net Asset Value, Beginning of Period.... $ 1.000 $ 1.000
------- -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss).......... 0.021 0.003
------- -------
Total from Investment Operations...... 0.021 0.003
------- -------
LESS DISTRIBUTIONS FROM:
Net investment income................. (0.021) (0.003)
------- -------
NET ASSET VALUE, END OF PERIOD.......... $ 1.000 $ 1.000
------- -------
------- -------
TOTAL RETURN(b)......................... 2.15% 0.31%
------- -------
------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Period (000's)....... $ 4,763 $ 2,510
Ratios to average net assets:
Net expenses(a)....................... 0.65% 0.65%
Gross expenses(a)..................... 3.47% 12.29%
Net investment income(a).............. 4.29% 4.48%
</TABLE>
- --------------------------------------------------------------------------------
* For the period from December 7, 1998 (commencement of operations) to
December 31, 1998.
(a) Annualized for periods less than one year.
(b) Total Returns are historical and assume changes in share price,
reinvestments of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the period shown, total returns
would have been lower. Total returns for periods of less than one year are
not annualized.
15
<PAGE>
FINANCIAL HIGHLIGHTS
SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout the period:
<TABLE>
<CAPTION>
SUN CAPITAL
INVESTMENT GRADE BOND FUND
------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 (UNAUDITED) DECEMBER 31, 1998*
-------------------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 9.970 $10.000
------- -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss).......... 0.284 0.034
Net realized and unrealized gain
(loss) on investments............... (0.330) (0.030)
------- -------
Total from Investment Operations...... (0.046) 0.004
------- -------
LESS DISTRIBUTIONS FROM:
Net investment income................. (0.284) (0.034)
------- -------
NET ASSET VALUE, END OF PERIOD.......... $ 9.640 $ 9.970
------- -------
------- -------
TOTAL RETURN(b)......................... (0.48)% 0.04%
------- -------
------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Period (000's)....... $12,552 $10,026
Ratios to average net assets:
Net expenses(a)....................... 0.75% 0.75%
Gross expenses(a)..................... 2.01% 4.10%
Net investment income(a).............. 5.82% 5.01%
Portfolio turnover rate................. 43% 3%
</TABLE>
- --------------------------------------------------------------------------------
* For the period from December 7, 1998 (commencement of operations) to
December 31, 1998.
(a) Annualized for periods less than one year.
(b) Total Returns are historical and assume changes in share price,
reinvestments of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the period shown, total returns
would have been lower. Total returns for periods of less than one year are
not annualized.
16
<PAGE>
FINANCIAL HIGHLIGHTS
SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout the period:
<TABLE>
<CAPTION>
SUN CAPITAL
REAL ESTATE FUND
------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 (UNAUDITED) DECEMBER 31, 1998*
-------------------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 9.850 $10.000
------- -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss).......... 0.239 0.082
Net realized and unrealized gain
(loss) on investments............... 0.211 (0.152)
------- -------
Total from Investment Operations...... 0.450 (0.070)
------- -------
LESS DISTRIBUTIONS FROM:
Net investment income................. 0.000 (0.080)
------- -------
NET ASSET VALUE, END OF PERIOD.......... $10.300 $ 9.850
------- -------
------- -------
TOTAL RETURN(b)......................... 4.57% (0.71)%
------- -------
------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Period (000's)....... $ 5,710 $ 4,930
Ratios to average net assets:
Net expenses(a)....................... 1.25% 1.25%
Gross expenses(a)..................... 3.09% 7.44%
Net investment income(a).............. 5.16% 12.16%
Portfolio turnover rate................. 13% 2%
</TABLE>
- --------------------------------------------------------------------------------
* For the period from December 7, 1998 (commencement of operations) to
December 31, 1998.
(a) Annualized for periods less than one year.
(b) Total Returns are historical and assume changes in share price,
reinvestments of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the period shown, total returns
would have been lower. Total returns for periods of less than one year are
not annualized.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
NOTE A -- ORGANIZATION
Sun Capital Advisers Trust (the "Trust") is registered under the Investment
Company Act of 1940 as amended (the "1940 Act") as an open-end management
investment company. The Trust was established as a Delaware business trust under
the laws of Delaware by an Agreement and Declaration of Trust dated July 13,
1998. It is currently comprised of three funds (each referred to as a "Fund"),
which are offered only to qualified pension and retirement plans and variable
annuity and variable life insurance separate accounts established by insurance
companies to fund variable annuity contracts and variable life insurance
policies. The Funds are the Sun Capital Money Market Fund ("Money Market Fund"),
Sun Capital Investment Grade Bond Fund ("Investment Grade Bond Fund"), and the
Sun Capital Real Estate Fund ("Real Estate Fund"). Each of the Funds, other than
the Real Estate Fund, is classified as a diversified fund under the 1940 Act.
NOTE B -- SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with 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.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements.
VALUATION OF INVESTMENTS
Securities for which exchange quotations are readily available are valued at the
last sales price, or, if no sales occurred on that day, at the last quoted bid
price. Certain fixed income securities are valued by a dealer or by a pricing
service based upon a computerized matrix system, which considers market
transactions and dealer supplied valuations. Short-term securities maturing in
60 days or less are valued at cost plus earned discount to maturity (amortized
cost), which approximates market value. Securities for which current market
quotations are not readily available are stated at fair value as determined in
good faith under the direction of the Board of Trustees.
In accordance with Rule 2a-7 of the 1940 Act, the Money Market Fund values its
securities initially at cost, and thereafter, securities are assumed to have a
constant amortization to maturity of any discount or premium. Amortized cost
approximates fair value.
INVESTMENT TRANSACTIONS AND INCOME
Investment security transactions are accounted for as of trade date. Dividend
income is recorded on the ex-dividend date. Interest income is recorded on the
accrual basis. Realized gains and losses from security transactions are
determined on the basis of identified cost for both financial statement and
federal income tax purposes.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal tax purposes. Each Fund
has qualified and intends to elect and continue to qualify each year to be
treated as a regulated investment company under Subchapter M of the Internal
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) SUN CAPITAL ADVISERS
TRUST
- --------------------------------------------------------------------------------
Revenue Code, as amended. By so qualifying, the Funds will not be subject to
federal income taxes to the extent that they distribute all of their taxable
income, including realized capital gains, for the fiscal year. In addition, by
distributing during each calendar year substantially all of their net investment
income, capital gains and certain other amounts, if any, the Funds will not be
subject to a federal excise tax.
A portion of the dividend income recorded by Real Estate Fund is from
distributions by publicly traded REITs, and such distributions for tax purposes
may also consist of capital gains and return of capital. The actual return of
capital and capital gains portions of such distributions will be determined by
formal notifications from the REITs subsequent to the calendar year-end.
Distributions received from the REITs that are determined to be a return of
capital are recorded by the Fund as a reduction to the cost basis of the
securities held.
REPURCHASE AGREEMENTS
In connection with transactions in repurchase agreements, the Trust's custodian
takes possession of the underlying collateral securities, the value of which at
least equals 102% of the principal amount of the repurchase transaction. The
value of the collateral is marked-to-market on a daily basis to ensure the
adequacy of the collateral. In the event of default the Funds have the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. There is the risk that the collateral may be insufficient to meet
the obligation in the event of default.
WHEN ISSUED SECURITIES AND FORWARD COMMITMENTS
The Funds may purchase or sell securities on a when issued or forward commitment
basis. These transactions are arrangements in which the Funds purchase and sell
securities with payment and delivery scheduled for a future time. Settlement
dates may be a month or more after entering into these transactions and such
transactions may involve a risk of loss if the value of the underlying security
declines prior to the settlement date. The price of the underlying securities
and the date when these securities will be delivered and paid for are fixed at
the time the transaction is negotiated. This may increase the risk if the other
party involved in the transaction fails to deliver and causes the Funds to
subsequently invest at less advantageous prices and yields. In connection with
such purchases the Funds maintain cash or liquid assets in an amount equal to
purchase commitments for such underlying securities until settlement date and
for sales commitments the Funds maintain equivalent deliverable securities as
"cover" for the transaction. Unsettled commitments are valued at current market
value of the underlying security. Daily fluctuations in the value of such
contracts are recorded as unrealized gains or losses. The Funds will not enter
into such agreements for the purpose of investment leverage.
EXPENSES
Expenses directly attributable to a Fund are charged to that Fund. Expenses not
directly attributable to a particular Fund are allocated evenly among the
affected Funds, allocated on the basis of relative net assets, or otherwise
allocated among the Funds as the Trustees may direct or approve.
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) SUN CAPITAL ADVISERS
TRUST
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
The Money Market Fund and Investment Grade Bond Fund declare dividends daily
from net investment income, if any. The Real Estate Fund distributes its net
investment income, if any, annually. Each Fund distributes its net realized
capital gains, if any, at least annually. Income and capital gain distributions
are determined in accordance with income tax regulations which may differ from
generally accepted accounting principles.
NOTE C -- INVESTMENT ADVISORY AND OTHER RELATED PARTY AGREEMENTS
INVESTMENT ADVISORY AGREEMENT
Sun Capital Advisers, Inc. ("Adviser") is the investment adviser to all Funds of
the Trust under an investment advisory agreement with the Trust dated November
4, 1998. The Adviser is a wholly-owned subsidiary of Sun Life Assurance Company
of Canada (U.S.), ("Sun Life (U.S.)") which is an indirect wholly owned
subsidiary of Sun Life Assurance Company of Canada ("Sun Life of Canada").
As compensation for all services rendered, facilities provided and expenses paid
or assumed by the Adviser under the advisory agreement, the Trust pays
compensation monthly to the Adviser at the following annual rates based on the
average daily net assets of each Fund taken separately: 0.50% of average daily
net assets for the Money Market Fund; 0.60% of the average daily net assets for
the Investment Grade Bond Fund; 0.95% of the average daily net assets for the
Real Estate Fund.
LIMITATIONS
The Adviser has voluntarily agreed to reduce its advisory fee and to reimburse
each Fund's other expenses to reduce each Fund's total annual operating expenses
to 0.65%, 0.75% and 1.25% of average daily net assets for the Money Market Fund,
Investment Grade Bond Fund and Real Estate Fund, respectively. The Adviser may
modify or terminate this voluntary expense limit at any time. For the six months
ended June 30, 1999, the Adviser voluntarily waived all investment advisory fees
and reimbursed the Funds for other operating expenses in the amounts of $38,158,
$35,699 and $22,924 for the Money Market Fund, Investment Grade Bond Fund, and
Real Estate Fund, respectively. To the extent that a fund's total expense ratio
falls below the expense limit stated above in future years, the Adviser reserves
the right to be reimbursed for management fees waived and fund expenses paid by
it during the prior two fiscal years.
TRUSTEES' COMPENSATION
Trustees' fees are paid by the Trust to each independent trustee of the Trust.
The Trust pays no compensation directly to its Trustees or officers who are
affiliated with the Adviser, Sun Life (U.S.) or Sun Life of Canada, all of whom
receive remuneration for their services to the Trust from the Adviser, Sun Life
(U.S.) or Sun Life of Canada. Certain officers and Trustees of the Trust are
officers and directors of the Adviser, Sun Life (U.S.) or Sun Life of Canada.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) SUN CAPITAL ADVISERS
TRUST
- --------------------------------------------------------------------------------
NOTE D -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities for each Fund for the six months ended June 30, 1999 were
as follows:
<TABLE>
<CAPTION>
NON- NON-
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
PURCHASES PURCHASES SALES SALES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment Grade Bond Fund............................... $5,366,812 $2,779,403 $3,180,403 $1,154,981
Real Estate Fund......................................... 1,232,079 -- 671,806 --
</TABLE>
Purchases and sales, including maturities, of short-term securities by the Money
Market Fund for the six months ended June 30, 1999 were $11,611,632 and
$9,374,819, respectively.
The identified cost for federal income tax purposes of investments owned by each
Fund and their respective gross unrealized appreciation and depreciation at June
30, 1999 were as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
IDENTIFIED GROSS UNREALIZED APPRECIATION/
COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Money Market Fund................................. $ 4,778,097 $ -- $ -- $ --
Investment Grade Bond Fund........................ 12,794,477 16,986 (348,510) (331,524)
Real Estate Fund.................................. 5,604,809 157,050 (90,995) 66,055
</TABLE>
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at June 30, 1999.
- --------------------------------------------------------------------------------
YEAR 2000
Some computer systems in the financial services industry will be unable to
recognize dates after December 31, 1999. The Funds' securities trades, pricing
and accounting services and other operations could be adversely affected by
failure of computer systems utilized by the adviser, custodian and transfer
agent. The adviser is taking steps it believes are reasonably designed to
identify any potential problems with the computer systems it uses. The Funds'
other service providers have told the adviser they are taking comparable steps.
The adviser does not believe that the Year 2000 issue will have a material
adverse effect on its business operations or results of operations.
21
<PAGE>
SUN CAPITAL ADVISERS TRUST
- --------------------------------------------------------------------------------
TRUSTEES AND OFFICERS
GRAHAM E. JONES, TRUSTEE
ANTHONY C. PADDOCK, TRUSTEE
WILLIAM N. SEARCY, JR., TRUSTEE
C. JAMES PRIEUR, CHAIRMAN, EXECUTIVE V.P. AND TRUSTEE
JAMES M.A. ANDERSON, PRESIDENT, CEO AND TRUSTEE
JAMES F. ALBAN, TREASURER AND CFO
ROBERT P. VROLYK, ASSISTANT TREASURER
RICHARD GORDON, VICE PRESIDENT
HOWARD C. GREENE, VICE PRESIDENT
JOHN T. DONNELLY, VICE PRESIDENT
MAURA A. MURPHY, SECRETARY
PETER F. DEMUTH, ASSISTANT SECRETARY
CHRISTOPHER P. HARVEY, ASSISTANT SECRETARY
INVESTMENT ADVISER
SUN CAPITAL ADVISERS, INC.
ONE SUN LIFE EXECUTIVE PARK
WELLESLEY HILLS, MA 02481
INDEPENDENT PUBLIC ACCOUNTANTS
DELOITTE & TOUCHE LLP
200 BERKELEY STREET
BOSTON, MA 02116
ADMINISTRATOR, CUSTODIAN
STATE STREET BANK & TRUST COMPANY
225 FRANKLIN STREET
BOSTON, MA 02110
LEGAL COUNSEL
HALE AND DORR LLP
60 STATE STREET
BOSTON, MA 02109-1803
This report must be preceded or accompanied by a prospectus for Sun Capital
Advisers Trust which includes more information about charges and expenses.
Please read the prospectus carefully before you invest or send money.
