<PAGE>
SUN CAPITAL ADVISERS TRUST
SEMI-ANNUAL REPORT
JUNE 30, 2000
SUN CAPITAL MONEY MARKET FUND
SUN CAPITAL INVESTMENT GRADE BOND FUND
SUN CAPITAL REAL ESTATE FUND
SUN CAPITAL BLUE CHIP MID CAP FUND
SUN CAPITAL INVESTORS FOUNDATION FUND
SUN CAPITAL SELECT EQUITY FUND
[LOGO]
<PAGE>
Sun Capital Advisers Trust is a mutual fund registered with the Securities and
Exchange Commission under the Investment Company Act of 1940. Its investment
adviser is Sun Capital Advisers, Inc., a member of the Sun Life Financial group
of companies.
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
----------------------------------------------------------------------
MONEY MARKET FUND
For the six months ended June 30, 2000, the total return of the Sun Capital
Money Market Fund was 2.76%, compared to 2.93% for the Merrill Lynch three-month
U.S. Treasury Bill Index, whose term averaged 75 days.
At June 30, 2000, the Fund had net assets of $20.8 million compared to $14.0
million at December 31, 1999. The Fund had a seven-day yield of 5.98% and an
average maturity of 39 days. The portfolio was 100% invested in highly rated
commercial paper.
During the first half of 2000, money market interest rates, as measured by the
three-month Treasury bill, traded in a range between 5.23% and 6.21%. The yield
on three-month Treasury bills began the year at 5.33%, reached a high of 6.21%
mid-May and declined to 5.85% at the end of June. 90 day commercial paper yields
rose almost 1% to 6.55% during the six months resulting in the underperformance
of commercial paper relative to Treasury bills on a total return basis. Due to
strong economic activity and labor shortages, the Federal Reserve's Open Market
Committee raised the Federal Funds rate in February, March and May. The
increases in February and March were 25 basis points each and the May increase
was 50 basis points. These increases brought the Federal Funds rate up to 6.50%,
an increase of 1.75% since June 30, 1999. Unless the economy slows down and
inflation stays low, further increases are anticipated.
<TABLE>
<S> <C>
TOP TEN HOLDINGS
AT JUNE 30, 2000
----------------------------------------------------
% OF NET ASSETS
----------
Citicorp 6.53% 8/15/2000 4.34%
Pacific Gas & Electric Co. 6.51% 4.33%
7/10/2000
Lucent Technologies, Inc. 6.51% 4.30%
8/15/2000
Province of Quebec 6.75% 11/20/2000 4.10%
Caterpillar Financial Services NV 4.09%
6.40% 7/6/2000
PPG Industries, Inc. 6.52% 4.09%
7/14/2000
IBM Credit Corp. 6.50% 8/11/2000 3.83%
Toyota Motor Credit Co. 6.60% 3.60%
7/21/2000
Household Finance Corp. 6.10% 3.37%
7/5/2000
American General Finance Corp. 3.33%
6.64% 9/8/2000
</TABLE>
1
<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 LYNCH SUN CAPITAL
3-MONTH T-BILL INDEX MONEY MARKET FUND
<S> <C> <C>
12/7/98 $10,000.00 $10,000.00
12/31/98 $10,030.00 $10,031.00
03/31/99 $10,135.98 $10,137.60
06/30/99 $10,255.04 $10,246.25
09/30/99 $10,384.79 $10,363.47
12/31/99 $10,513.47 $10,495.25
03/31/00 $10,660.18 $10,634.55
06/30/00 $10,821.94 $10,784.81
</TABLE>
TOTAL RETURNS**
<TABLE>
<CAPTION>
6 MONTHS ENDED 1 YEAR PERIOD ENDED LIFE OF
JUNE 30, 2000 JUNE 30, 2000 FUND***
--------------- -------------------- -------
<S> <C> <C> <C>
Money Market Fund.................. 2.76% 5.26% 4.94%
Merrill Lynch 3-month U.S. Treasury
Bill Index*...................... 2.93% 5.53% 5.17%
</TABLE>
*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 closest 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. 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.
**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. In addition, the investment
adviser reduced its management fee and certain other expenses during this
period. If this performance information included the effect of the insurance
charges and the fees and expenses assumed by the investment adviser, 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. Total returns are cumulative
unless otherwise noted.
***Average annual total return for the period from December 7, 1998
(commencement of operations) to June 30, 2000.
2
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
----------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
For the six months ended June 30, 2000, the total return for the Sun Capital
Investment Grade Bond Fund was 3.45%, compared to the Lehman Brothers Aggregate
Bond Index return of 3.98%. The Fund's lower return was due to its ongoing
concentration in the Corporate bond sector. Through most of 2000, this market
segment continued to suffer from reduced liquidity, the tightening posture of
Federal Reserve monetary policy, and a modest flight to quality in the Treasury
sector spurred on by the current debt buyback program.
The Fund's top three sectors were Corporate bonds (35.9%), Mortgage-Backed
securities (32.9%), and U.S. Government securities (10.0%). At June 30, 2000,
51.9% of the portfolio was rated AAA or higher, and 87.2% of the Fund was rated
investment grade. The portfolio duration of 4.75 years was slightly shorter than
the Lehman Aggregate Index duration of 4.88 years.
The Treasury yield curve inverted in January and remained inverted through the
end of June. As we anticipated in our December 31, 1999 review, the Federal
Reserve raised short-term interest rates in early 2000, and then twice more, for
a total of 100 basis points in the first half of the year. As of June 30, 2000,
the Fed Funds rate stood at 6.50%. However, at the long end of the yield curve,
Treasuries rallied due to growing concern that long Treasury bonds will become
more scarce. There was also a modest flight to quality from the Federal Agency
sector, after federal legislation was introduced that would lessen the U.S.
Government's implicit support to the Agencies. In terms of actual buybacks, the
U.S. Treasury bought back approximately $15 billion in Treasuries so far this
year, and has stated a goal of buying back up to $30 billion before year-end.
As stated above, within the various non-Treasury sectors of the fixed income
markets, liquidity deteriorated and spreads to Treasuries widened through much
of early 2000. However, market conditions began to improve in May, continuing
through June. Corporate issuance saw a better reception as investor demand
increased. Despite stronger relative performance in recent weeks, valuations in
most of the spread sectors remain at historically wide levels, and continue to
offer good value. The Fund will continue to focus in these areas.
<TABLE>
<CAPTION>
TOP TEN BOND ISSUERS TOP FIVE INDUSTRIES
AT JUNE 30, 2000 AT JUNE 30, 2000
------------------------------------------------------------------------------------------------------------
% OF NET ASSETS % OF NET ASSETS
--------------- ---------------
<S> <C> <C> <C>
Federal National Mortgage Assn. 13.67% U.S. Govt. & Agency Oblig. 42.9%
Federal Home Loan Mortgage Assn. 11.31% Electric Utilities 5.3%
U.S. Treasury 9.99% Asset Backed 5.3%
Government National Mortgage Assn. 8.84% Financial 4.6%
Continental Airlines, Inc. 1.86% Transportation 4.4%
Ford Motor Credit Co. 1.69%
Lehman Brothers Holdings 1.69%
Morgan Stanley Capital 1.52%
El Paso Electric Company 1.50%
Pemex Finance Ltd. 1.38%
</TABLE>
3
<PAGE>
----------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE INVESTMENT GRADE
BOND FUND AND THE LEHMAN BROTHERS AGGREGATE BOND INDEX*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
LEHMAN BROTHERS AGGREGATE SUN CAPITAL INVESTMENT GRADE
BOND INDEX BOND INDEX
12/7/98 $10,000.00 $10,000.00
12/31/98 $10,025.04 $10,004.15
3/31/00 $9,975.31 $10,045.41
6/30/99 $9,887.66 $9,955.74
9/30/99 $9,954.80 $9,962.79
12/31/99 $9,942.64 $9,948.31
3/31/00 $10,162.06 $10,120.17
6/30/00 $10,338.18 $10,291.47
TOTAL RETURNS**
<TABLE>
<CAPTION>
SIX MONTHS 1 YEAR
ENDED PERIOD ENDED LIFE OF
JUNE 30, 2000 JUNE 30, 2000 FUND***
------------- ------------- -------
<S> <C> <C> <C>
Investment Grade Bond Fund......... 3.45% 3.37% 1.85%
Lehman Brothers Aggregate Bond
Index*........................... 3.98% 4.56% 2.14%
</TABLE>
*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. 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.
**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. In addition, the investment
adviser reduced its management fee and certain other expenses during this
period. If this performance information included the effect of the insurance
charges and the fees and expenses assumed by the investment adviser, 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. Total returns are
cumulative unless otherwise noted.
***Average annual total return for the period from December 7, 1998
(commencement of operations) to June 30, 2000.
4
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
----------------------------------------------------------------------
REAL ESTATE FUND
For the six months ended June 30, 2000, the Fund posted a total return of 16.67%
compared to a 13.30% return for the Morgan Stanley REIT Index. For the 1-year
period ended June 30, 2000, the Fund had a total return of 7.13%, compared to
3.37% for the Index.
Several of the Fund's largest holdings, including BRE Properties, Spieker
Properties, SL Green, Kimco Realty, Avalon Bay, and Reckson Associates,
outperformed both the Index and their property-type peers for the six month
period. Other standout performers for the period included Meristar Hospitality
(+37% total return), CBL (+25%), Developer's Diversified (+21%), Duke-Weeks
(+18%), and Host Marriott (+18%). The Fund's performance was hurt by the
underperformance of Franchise Finance (-4%), Simon Property Group (-3%), and
Mack-Cali (-1%).
The Morgan Stanley REIT Index outperformed the total return of the other major
stock market indices, including the S&P 500, Dow Jones Industrial, and NASDAQ,
for both the latest quarter and calendar year-to-date. This outperformance was
driven mainly by a dramatic shift in market sentiment, as increased volatility
in the broader market, especially within the technology sector, highlighted the
attractiveness of REITs' predictable cash flows, generous dividend yields, and
attractive valuations. The swing in sentiment was evidenced by the positive net
fund flows into real estate mutual funds, which totaled roughly $400 million for
the quarter (vs. outflows of nearly $200 million in quarter 1 of 2000).
Underlying real estate fundamentals continue to be strong, with strong
same-store net operating income growth driven by both rental rate and occupancy
gains, and continuing supply/demand equilibrium in most markets.
The best performing property types in the REIT market year-to-date included the
Office, Industrial, and Diversified/ Mixed sectors, along with Hotels and
Apartments. All of these sectors posted double digit total returns for the
6-month period. The Retail and Self-Storage sectors posted low single digit
returns, while the Healthcare and Specialty sectors lagged with negative total
returns for the period.
The valuations of REIT's relative to other markets continue to be attractive.
The average dividend yield is still greater than 7% (roughly 150 basis points
greater than the 10-yr Treasury yield), the average price/funds from operation
(FFO) multiple is 8.8x, based on estimated 2000 FFO (vs. P/E of 25x for S&P
500), and average price/NAV discount is still estimated to be around 15-20%.
Given these still-attractive valuation statistics, combined with the continuing
healthy fundamentals of the real estate markets, REIT stock prices should find
support at current levels. We look for further appreciation throughout the
remainder of the year at least commensurate with FFO growth.
5
<PAGE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS TOP FIVE PROPERTY TYPES
AT JUNE 30, 2000 AT JUNE 30, 2000
------------------------------------------------------------------------------------------------------------
% OF NET ASSETS % OF NET ASSETS
--------------- ---------------
<S> <C> <C> <C>
AvalonBay Communities, Inc. 8.22% Office 28.9%
SL Green Realty Corp. 7.64% Apartments 23.9%
Apartment Investment & Warehouse & Industrial 12.8%
Management Co. 6.53% Regional Malls 11.1%
Equity Office Properties Trust 5.31% Shopping Centers 9.5%
Kimco Realty Corp. 5.04%
Reckson Associates Realty Corp. 4.67%
BRE Properties, Inc. 4.66%
Highwoods Properties, Inc. 4.59%
ProLogis Trust 4.50%
Equity Residential Properties Trust 4.49%
</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 SUN CAPITAL REAL ESTATE FUND
<S> <C> <C>
12/7/98 $10,000.00 $10,000.00
12/31/98 $9,773.77 $9,929.44
3/31/99 $9,303.43 $9,364.92
6/30/99 $10,225.57 $10,383.06
9/30/99 $9,398.40 $9,536.29
12/31/99 $9,329.59 $9,534.00
3/31/00 $9,577.22 $9,928.59
6/30/00 $10,570.64 $11,123.00
</TABLE>
TOTAL RETURNS**
<TABLE>
<CAPTION>
SIX MONTHS ENDED 1 YEAR PERIOD ENDED LIFE OF
JUNE 30, 2000 JUNE 30, 2000 FUND***
----------------- -------------------- -------
<S> <C> <C> <C>
Real Estate Fund................... 16.67% 7.13% 7.03%
Morgan Stanley REIT Index*......... 13.30% 3.37% 3.60%
</TABLE>
*The Morgan Stanley REIT Index is a total-return index composed of the most
actively traded real estate investment trusts and is designed to be a measure of
real estate equity performance. 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.
**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. In addition, the investment
adviser reduced its management fee and certain other expenses during this
period. If this performance information included the effect of the insurance
charges and the fees and expenses assumed by the investment adviser, 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. Total returns are cumulative
unless otherwise noted.
***Average annual total return for the period from December 7, 1998
(commencement of operations) to June 30, 2000.
7
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
----------------------------------------------------------------------
WELLINGTON MANAGEMENT CO., LLP MARKET OVERVIEW
As the clocks rolled forward into the year 2000, investors embraced the new
millennium and sent US equity markets rallying to new heights. The high-flying
technology sector led the way early on, and despite high valuations, growth
stocks continued to outperform value, albeit more modestly than during the
previous year. However, storm clouds were on the horizon. Inflationary fears
from 1999 remained as the US economy continued to show signs of formidable
strength, prompting further tightening by the Federal Reserve under chairman
Alan Greenspan. Crude oil prices, which had tripled in 1999, continued to rise,
resulting in dramatically higher prices for both home heating oil and gasoline.
Equity markets weakened in late March as investors rotated out of technology and
telecom stocks into securities with less lofty valuations. A half-hearted
attempt by the market to recover in late April was squashed in May by further
tightening by the Federal Reserve. Thankfully, June brought a slew of economic
statistics that seemed to indicate that growth in the US economy was finally
starting to slow. The Federal Reserve confirmed the consensus expectation in
late June by deciding not to take further action on short-term interest rates
pending further evidence of a slowdown and the impact of previous hikes. The S&P
500 Composite Index recovered from its lows of the year, but was unable to make
new highs with most investors staying on the sidelines.
In a volatile equity market, during the first six months of 2000 the mid-cap
sector excelled as measured by the S&P MidCap 400 Index return of 9.0%.
Small-cap stocks outpaced large caps, with the Russell 2000 Index returning 3.0%
versus a return of -0.4% for the S&P 500 Composite Index. Growth outperformed
value during the six month period, with the Russell 3000 Growth Index returning
4.0% versus the -3.6% return of the Russell 3000 Value Index.
The outlook for the US economy in the third quarter of 2000 remains positive due
to continued robust growth in technology investment and strong demand for US
exports. We anticipate that the Federal Reserve will raise rates another 25
basis points in August to further slow the economy. The end of rate increases
should limit the magnitude of slowing in the US economy, which would provide
positive support to US financial markets. We will continue to focus our efforts
on what we believe to be our greatest strength -- using fundamental research to
find attractive investments for your Funds.
8
<PAGE>
BLUE CHIP MID CAP FUND (SUBADVISED BY WELLINGTON MANAGEMENT CO., LLP)
The Blue Chip Mid Cap Fund returned 19.51% for the six months ending June 30,
2000 compared to 8.97% for the S&P MidCap 400 Index. The Fund's investment
strategy utilizes a two-tiered investment approach. The first is to identify the
fastest growing sectors in the market using general economic and investment
research. Then we focus on individual security analysis searching for
high-quality, mid-cap companies that have critical mass and the potential to be
much larger. The first six months of the year was a strong period for the
mid-cap sector, and the Fund was able to take advantage of this positive
environment. Investments that were additive to returns for the period included
Ciena, Sanmina Corp. and Rational Software in technology, Waters Corp and Human
Genome Sciences in health care, and R&B Falcon and Weatherford International in
energy. Mid-cap stocks (as measured by the S&P MidCap 400 Index) have
outperformed both large cap stocks (S&P Index) and small cap stocks (Russell
2000 Index) over the trailing one, two, three and ten year periods. We believe
the above average growth prospects within the mid-cap sector translates into
further outperformance in the future.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS TOP FIVE SECTORS
AT JUNE 30, 2000 AT JUNE 30, 2000
------------------------------------------------------------------------------------------------------------
% OF NET ASSETS % OF NET ASSETS
--------------- ---------------
<S> <C> <C> <C>
American Tower Corp. 2.59% Business Services 16.1%
Sanmina, Corp. 2.38% Drugs & Health Care 13.5%
Dollar General Corp. 2.34% Electronics 13.4%
Ceridian Corp. 2.29% Communication Services 9.3%
Rational Software Corp. 2.26% Retail 5.9%
Ace Ltd. 2.17%
Manpower, Inc. 2.16%
R&B Falcon Corp. 2.13%
Cabletron Systems, Inc. 2.08%
Transocean Sedco Forex, Inc. 2.02%
</TABLE>
9
<PAGE>
----------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE BLUE CHIP MID CAP
FUND AND THE S&P MID CAP 400 INDEX*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SUN CAPITAL BLUE CHIP MID CAP FUND S&P MID CAP 400 INDEX
<S> <C> <C>
SEPT 1 1999 $10,000.00 $10,000.00
SEPT 30 1999 $9,700.00 $9,691.30
OCT 31 1999 $10,350.00 $10,185.17
NOV 30 1999 $10,919.97 $10,719.79
DEC 31 1999 $12,707.46 $11,356.86
JAN 31 2000 $12,686.75 $11,037.06
FEB 29 2000 $14,721.96 $11,809.43
MAR 31 2000 $15,610.43 $12,797.76
APR 30 2000 $14,618.71 $12,350.86
MAY 31 2000 $13,833.54 $12,196.72
JUN 30 2000 $15,186.87 $12,375.89
</TABLE>
CUMULATIVE TOTAL RETURNS**
<TABLE>
<CAPTION>
SIX MONTHS ENDED LIFE OF
JUNE 30, 2000 FUND***
----------------- ------------
<S> <C> <C>
Blue Chip Mid Cap Fund.................. 19.51% 51.87%
S&P Mid Cap 400 Index*.................. 8.97% 23.76%
</TABLE>
*The Standard & Poor's MidCap 400 Index is a capitalization-weighted index that
measures the mid-range sector of the U.S. stock market. 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.
**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. In addition, the investment
adviser reduced its management fee and certain other expenses during this
period. If this performance information included the effect of the insurance
charges and the fees and expenses assumed by the investment adviser, performance
numbers would be lower. The value of an investment in the Blue Chip Mid Cap Fund
and the return on the investment will fluctuate and redemption proceeds may be
higher or lower than an investor's original cost.
***For the period from September 1, 1999 (commencement of operations) to
June 30, 2000.
10
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
----------------------------------------------------------------------
INVESTORS FOUNDATION FUND (SUBADVISED BY WELLINGTON MANAGEMENT CO., LLP)
The Investors Foundation Fund gained 1.25% for the six month period ended
June 30, 2000 versus a decline of (0.42%) for the S&P 500 Composite Index. The
Fund's investment approach combines Wellington Management's proprietary
fundamental research with quantitative analysis in the security selection
process. The complementary nature of these two investment "signals" has, over
time, provided greater consistency of returns than the independent use of either
approach. Positive investment returns during the period were attributable to
stock selection and overweight positions in the technology and health care
sectors. Strong stock selection also yielded positive returns in the consumer
staples, finance, utilities and energy sectors. In technology, Intel, Corning,
Oracle, Micron Technologies, Analog Devices and Hewlett Packard were among the
strongest performers for the period. Corning, the number one maker of glass used
in fiber-optic networks, benefited from strong fiber, cable and components
sales. Due to consistently strong PC demand, Hewlett Packard and chip makers
Intel and Micron Technologies had strong returns during the period. Immunex,
Warner-Lambert, and Cardinal Health were most additive to Fund returns in the
health care sector. Cardinal Health, which provides complementary products and
services to health-care providers and pharmaceutical manufacturers, increased
market share during the period and experienced accelerating earnings growth.
Within the finance sector, the Fund benefited from holding Merrill Lynch,
Citigroup, and Morgan Stanley Dean Witter. These bellwether names continue to be
among the best-positioned global financial institutions. With real economic
growth showing signs of slowing, we believe we are close to an end in interest
rate tightening. Strong tech spending and gains in productivity will continue to
provide support in the US and a healthy environment for investors.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS TOP FIVE SECTORS
AT JUNE 30, 2000 AT JUNE 30, 2000
------------------------------------------------------------------------------------------------------------
% OF NET ASSETS % OF NET ASSETS
--------------- ---------------
<S> <C> <C> <C>
General Electric Co 4.07% Drugs & Health Care 11.9%
Intel Corp. 3.95% Electronics 8.6%
Microsoft Corp. 3.78% Financial Services 8.4%
Cisco Systems, Inc. 3.76% Computers & Business Equipment 8.1%
Exxon Mobil Corp. 2.47% Telecommunications 7.0%
Citigroup, Inc. 2.26%
Wal-Mart Stores, Inc. 2.16%
International Business Machines 1.94%
Corp.
Pharmacia Corp. 1.93%
American International Group, Inc. 1.85%
</TABLE>
11
<PAGE>
----------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE INVESTORS
FOUNDATION FUND AND THE S&P 500 INDEX*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SUN CAPITAL
<S> <C> <C>
INVESTORS
FOUNDATION
FUND S&P 500 INDEX
9/01/1999 $10,000.00 $10,000.00
9/30/1999 $9,700.00 $9,725.90
10/31/1999 $10,159.78 $10,341.35
11/30/1999 $10,819.76 $10,551.59
12/31/1999 $12,639.75 $11,173.08
1/31/2000 $12,399.72 $10,611.75
2/29/2000 $13,849.75 $10,410.87
3/31/2000 $14,679.76 $11,429.36
4/30/2000 $13,139.85 $11,085.45
5/31/2000 $12,049.90 $10,857.98
6/30/2000 $11,353.00 $11,125.63
</TABLE>
CUMULATIVE TOTAL RETURNS**
<TABLE>
<CAPTION>
SIX MONTHS ENDED LIFE OF
JUNE 30, 2000 FUND***
----------------- -----------
<S> <C> <C>
Investors Foundation Fund............... 1.25% 13.53%
S&P 500 Index........................... (0.42)% 11.26%
</TABLE>
*The Standard & Poor's 500 Index is a market-value weighted index of 500 blue
chip stocks and is considered to be a benchmark of the overall stock market. 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.
**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. In addition, the investment
adviser reduced its management fee and certain other expenses during this
period. If this performance information included the effect of the insurance
charges and the fees and expenses assumed by the investment adviser, performance
numbers would be lower. The value of an investment in the Investors Foundation
Fund and the return on the investment will fluctuate and redemption proceeds may
be higher or lower than an investor's original cost.
***For the period from September 1, 1999 (commencement of operations) to
June 30, 2000.
12
<PAGE>
MANAGEMENT'S DISCUSSION & ANALYSIS
----------------------------------------------------------------------
SELECT EQUITY FUND (SUBADVISED BY WELLINGTON MANAGEMENT CO., LLP)
The Select Equity Fund returned 3.32% for the six months ending June 30, 2000
compared to (0.42)% for the S&P 500 Composite Index. The Fund uses a
concentrated approach whereby the stock of 20-40 high quality, US companies are
held at any given time. Strong returns during the period were attributable to
overweight positions in the health care and technology sectors and underweight
positions in the consumer staples and consumer discretionary sectors. In
addition, stock selection in technology, finance and health care was most
additive to returns. In technology, strong performance was driven by PMC-Sierra,
Veritas Software, Broadcom, Oracle, JDS Uniphase and Nortel Networks. Each of
these companies provides technology to build the infrastructure for broadband
networks and internet services, currently areas of high demand. In the finance
sector, Morgan Stanley Dean Witter and Marsh McLennan were the most positive
contributors to Fund returns. Both companies are benefiting from the strong
equity markets. After a dismal 1999, health care stocks began to discount their
strong fundamentals. Immunex, American Home Products and Pharmacia Corp. all
contributed positively during the period. As interest rates stabilize and
inflation moderates, the environment for financial markets should be positive.
We continue to be focused on investing in companies with strong fundamentals and
earnings growth. We believe that the Select Equity Fund is well positioned for
the current economic environment and remain cautiously optimistic about the US
equity markets.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS TOP FIVE SECTORS
AT JUNE 30, 2000 AT JUNE 30, 2000
------------------------------------------------------------------------------------------------------------
% OF NET ASSETS % OF NET ASSETS
--------------- ---------------
<S> <C> <C> <C>
Morgan Stanley Dean Witter & Co. 5.05% Communication Services 18.2%
Intel Corp. 4.99% Electronics 15.5%
WorldCom, Inc. 4.68% Drugs & Healthcare 14.2%
Cisco Systems, Inc. 4.52% Financial Services 13.3%
Exxon Mobil Corp. 4.49% Telecommunications 9.1%
Nortel Networks Corp. 4.38%
Micron Technology, Inc. 4.31%
Goldman Sachs Group, Inc. 4.21%
Microsoft Corp. 4.11%
Citigroup, Inc. 4.01%
</TABLE>
13
<PAGE>
----------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE SELECT EQUITY FUND
AND THE S&P 500 INDEX*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SUN CAPITAL
<S> <C> <C>
SELECT
EQUITY
FUND S&P 500 INDEX
9/01/1999 $10,000.00 $10,000.00
9/30/1999 $9,700.00 $9,725.90
10/31/1999 $10,159.78 $10,341.35
11/30/1999 $10,819.76 $10,551.59
12/31/1999 $12,639.75 $11,173.08
1/31/2000 $12,399.72 $10,611.75
2/29/2000 $13,849.75 $10,410.87
3/31/2000 $14,679.76 $11,429.36
4/30/2000 $13,139.85 $11,085.45
5/31/2000 $12,049.90 $10,857.98
6/30/2000 $13,059.93 $11,125.63
</TABLE>
CUMULATIVE TOTAL RETURNS**
<TABLE>
<CAPTION>
SIX MONTHS ENDED LIFE OF
JUNE 30, 2000 FUND***
----------------- -------
<S> <C> <C>
Select Equity Fund...................... 3.32% 30.60%
S&P 500 Index........................... (0.42)% 11.26%
</TABLE>
*The Standard & Poor's 500 Index is a market-value weighted index of 500 blue
chip stocks and is considered to be a benchmark of the overall stock market. 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.
**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. In addition, the investment
adviser reduced its management fee and certain other expenses during this
period. If this performance information included the effect of the insurance
charges and the fees and expenses assumed by the investment adviser, performance
numbers would be lower. The value of an investment in the Select Equity Fund and
the return on the investment will fluctuate and redemption proceeds may be
higher or lower than an investor's original cost.
***For the period from September 1, 1999 (commencement of operations) to
June 30, 2000.
14
<PAGE>
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
COMMERCIAL PAPER - 99.9%
American Express Credit Corp.
6.52%, 7/7/00......................... $236 $ 236,000
6.52%, 8/10/00........................ 664 664,000
American General Finance Corp.
6.64%, 9/8/00 (1)..................... 700 691,091
Associates Corp. of North America
6.07%, 7/5/00......................... 110 110,000
6.52%, 8/4/00......................... 410 407,476
6.60%, 8/21/00........................ 382 378,428
BellSouth Telecommunications, Inc.
6.52%, 8/11/00........................ 500 496,287
6.54%, 8/8/00......................... 350 347,584
Caterpillar Financial Services NV
6.40%, 7/6/00......................... 850 849,244
CIT Group, Inc.
6.52%, 7/14/00........................ 635 633,505
6.53%, 8/4/00......................... 265 263,366
Citicorp
6.53%, 8/15/00........................ 900 900,000
Coca-Cola Co.
6.50%, 7/17/00........................ 350 348,989
6.55%, 9/14/00........................ 500 493,177
DaimlerChrysler NA
6.54%, 7/19/00........................ 250 249,182
6.57%, 9/11/00........................ 300 296,058
6.61%, 8/21/00........................ 350 346,723
Diageo Capital Plc
6.53%, 9/6/00......................... 600 592,708
Duke Energy Co.
6.90%, 7/5/00......................... 650 649,502
Dupont (E. I.) de Nemours & Co.
6.30%, 7/10/00........................ 205 204,677
6.35%, 7/6/00......................... 111 110,902
6.62%, 9/28/00........................ 310 304,927
Ford Motor Credit Co.
6.51%, 8/3/00......................... 597 597,000
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
COMMERCIAL PAPER (CON'T.) -
General Electric Capital Corp.
6.33%, 7/13/00........................ $550 $ 550,000
General Motors Acceptance Corp.
6.51%, 8/2/00......................... 250 248,553
6.55%, 9/18/00........................ 600 591,376
Household Finance Corp.
6.10%, 7/5/00......................... 700 700,000
IBM Credit Corp.
6.50%, 8/11/00........................ 800 794,078
Lucent Technologies, Inc.
6.51%, 8/15/00........................ 900 892,676
Merrill Lynch & Co., Inc.
6.14%, 7/24/00........................ 425 423,333
6.57%, 8/31/00........................ 400 395,547
Norwest Financial, Inc.
6.05%, 7/5/00......................... 397 396,534
6.52%, 7/5/00......................... 453 453,000
Pacific Gas & Electric Co.
6.51%, 7/10/00........................ 900 898,535
PPG Industries, Inc.
6.52%, 7/14/00........................ 850 847,999
Province of British Columbia
6.07%, 9/13/00........................ 136 134,303
6.43%, 7/31/00........................ 250 248,660
6.73%, 11/20/00....................... 400 389,382
Province of Quebec
6.75%, 11/20/00....................... 875 851,703
Schering Corp.
6.53%, 7/26/00........................ 200 199,093
Toyota Motor Credit Co.
6.60%, 7/21/00........................ 750 747,250
Walt Disney Co.
6.07%, 7/10/00........................ 300 299,545
6.08%, 7/10/00........................ 500 499,240
-----------
Total Commercial Paper
(amortized cost $20,731,633).......... 20,731,633
-----------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
15
<PAGE>
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
MUTUAL FUNDS - 0.4%
SSGA Money Market Fund
(amortized cost $79,994).............. 79,994 $ 79,994
-----------
TOTAL INVESTMENTS - 100.3%
(amortized cost $20,811,627).......... $20,811,627
Other assets less liabilities - (0.3)% (60,309)
-----------
NET ASSETS - 100.0%..................... $20,751,318
===========
</TABLE>
(1) Eligible for resale 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, 2000 these securities
amounted to $691,091, representing 3.3% of net assets.
--------------------------------------------------------------------------------
See Notes to Financial Statements.
16
<PAGE>
INVESTMENT GRADE BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
ASSET BACKED SECURITIES - 5.3%
California Infrastructure Development
6.42%, 9/25/08........................ $ 250 $ 242,853
CARCO Auto Loan Master Trust
6.69%, 8/15/04........................ 153 152,273
Discover Card Master Trust I
6.79%, 4/16/10........................ 278 272,307
Green Tree Recreational, Equipment &
Consolidated Trust
5.55%, 2/15/18........................ 94 91,330
Peco Energy Transition Trust
6.05%, 3/1/09......................... 300 280,137
Pemex Finance Ltd.
9.03%, 2/15/11 (1).................... 400 406,988
Toyota Auto Receivables Owner Trust
6.15%, 8/16/04........................ 125 123,416
-----------
Total Asset Backed Securities
(cost $1,616,993)..................... 1,569,304
-----------
CORPORATE DEBT OBLIGATIONS - 35.9%
AEROSPACE - 0.8%
Northrop Grumman Corp.
8.63%, 10/15/04....................... 80 82,427
9.38%, 10/15/24....................... 150 144,065
-----------
226,492
-----------
AUTOMOTIVE - 0.6%
Lear Corp.
7.96%, 5/15/05........................ 200 187,995
-----------
BANKS - 1.9%
BankBoston NA
6.38%, 3/25/08........................ 250 227,902
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
BANKS (Con't.) -
Lloyds Bank Plc
7.00%, 11/29/49....................... $ 400 $ 332,171
-----------
560,073
-----------
BROADCASTING/MEDIA - 3.2%
CSC Holdings, Inc.
9.88%, 2/15/13........................ 172 176,515
Lenfest Communications, Inc.
8.38%, 11/1/05........................ 200 202,688
News America Holdings, Inc.
9.25%, 2/1/13......................... 150 162,091
Time Warner Entertainment Co.
10.15%, 5/1/12........................ 350 401,674
-----------
942,968
-----------
BUILDING CONSTRUCTION - 1.9%
Centex Corp.
9.75%, 6/15/05........................ 300 300,753
D.R. Horton, Inc.
10.50%, 4/1/05........................ 250 249,375
-----------
550,128
-----------
CHEMICALS - 0.6%
Dow Capital BV
9.00%, 5/15/10........................ 155 170,739
-----------
CONSTRUCTION MATERIALS - 0.2%
Owens Corning
7.50%, 5/1/05......................... 50 44,969
-----------
CONTAINERS & GLASS - 0.4%
Owens-Illinois, Inc.
7.15%, 5/15/05........................ 146 133,462
-----------
DOMESTIC OIL - 0.4%
DeepTech International, Inc.
12.00%, 12/15/00...................... 125 125,076
-----------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
17
<PAGE>
INVESTMENT GRADE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
ELECTRIC UTILITIES - 5.3%
Cleveland Electric Illuminating Co.
9.00%, 7/1/23......................... $ 225 $ 227,486
9.50%, 5/15/05........................ 100 101,186
CMS Energy Corp.
8.38%, 7/1/03......................... 150 145,012
Connecticut Light & Power Co.
7.88%, 10/1/24........................ 200 199,936
El Paso Electric Co.
9.40%, 5/1/11......................... 417 442,495
Gulf States Utilities Co.
6.41%, 8/1/01......................... 128 126,053
Kansas Gas & Electric Co.
6.20%, 1/15/06........................ 150 130,439
Midland Funding Corp. II
11.75%, 7/23/05....................... 150 167,913
Texas Utilities Electric Co.
9.75%, 5/1/21......................... 15 15,779
-----------
1,556,299
-----------
ENVIRONMENTAL SERVICES - 1.1%
Allied Waste North America, Inc.
10.00%, 8/1/09........................ 150 126,750
Waste Management, Inc.
7.38%, 5/15/29........................ 250 205,085
-----------
331,835
-----------
FINANCIAL - 4.6%
Finova Capital Corp.
6.11%, 2/18/03........................ 200 172,362
Ford Motor Credit Co.
7.88%, 6/15/10........................ 500 499,910
Household Finance Corp.
7.88%, 3/1/07......................... 175 174,321
Lehman Brothers Holdings, Inc.
8.25%, 6/15/07........................ 500 499,655
-----------
1,346,248
-----------
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
CASINOS - 1.8%
Harrah's Operating Co., Inc.
7.88%, 12/15/05....................... $ 300 $ 282,000
MGM Grand, Inc.
9.75%, 6/1/07......................... 250 253,750
-----------
535,750
-----------
GAS & PIPELINE UTILITIES - 1.0%
Coastal Corp.
9.63%, 5/15/12........................ 250 281,615
-----------
HOTELS & RESTAURANTS - 0.8%
Tricon Global Restaurants, Inc.
7.45%, 5/15/05........................ 250 230,945
-----------
INTERNATIONAL OIL - 0.3%
Saga Petroleum ASA
7.25%, 9/23/27........................ 100 89,478
-----------
PAPER - 1.1%
Buckeye Technologies, Inc.
8.50%, 12/15/05....................... 119 113,943
Georgia-Pacific Group
9.63%, 3/15/22........................ 100 104,829
9.95%, 6/15/02........................ 100 103,536
-----------
322,308
-----------
REAL ESTATE - 0.6%
Simon Property Group LP
6.75%, 6/15/05........................ 200 187,372
-----------
RETAIL - 1.8%
Rite Aid Corp.
10.50%, 9/15/02....................... 200 166,000
Sears Roebuck Acceptance Corp.
6.70%, 11/15/06....................... 325 304,759
Wal-Mart Stores, Inc.
9.10%, 7/15/00........................ 75 74,935
-----------
545,694
-----------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
18
<PAGE>
INVESTMENT GRADE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
SCIENTIFIC INSTRUMENTS - 0.6%
Beckman Coulter, Inc.
7.10%, 3/4/03......................... $ 200 $ 191,118
-----------
STEEL - 0.4%
AK Steel Corp.
7.88%, 2/15/09........................ 150 133,125
-----------
TELECOMMUNICATIONS - 2.1%
GTE North, Inc.
9.60%, 1/1/21......................... 175 185,570
MCI WorldCom, Inc.
6.13%, 4/15/02........................ 70 68,417
Panamsat Corp.
6.13%, 1/15/05........................ 150 133,576
Qwest Communications
International, Inc.
7.50%, 11/1/08........................ 100 95,701
U.S. West Capital Funding, Inc.
6.88%, 7/15/28........................ 150 128,843
-----------
612,107
-----------
TRANSPORTATION - 4.4%
Amerco
7.20%, 4/1/02......................... 150 143,569
Atlas Air, Inc.
9.70%, 1/2/10 (1)..................... 200 199,954
Continental Airlines, Inc.
6.41%, 4/15/07........................ 129 122,995
8.04%, 11/1/20........................ 425 425,829
Federal Express Corp. Trust
6.72%, 1/15/22........................ 279 254,087
Northwest Airlines Corp.
7.58%, 3/1/19......................... 149 139,249
-----------
1,285,683
-----------
Total Corporate Debt Obligations
(cost $10,809,727).................... 10,591,479
-----------
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATION - 4.3%
Hydro-Quebec
8.40%, 1/15/22........................ $ 320 $ 341,743
Republic of Panama
8.25%, 4/22/08........................ 250 225,000
Republic of Philippines
8.88%, 4/15/08........................ 225 202,500
Republic of South Africa
9.13%, 5/19/09........................ 250 244,688
State of Qatar
9.75%, 6/15/30 (1).................... 250 246,562
-----------
Total Foreign Government Obligation
(cost $1,285,072)..................... 1,260,493
-----------
COLLATERALIZED MORTGAGE OBLIGATION - 0.9%
Federal Home Loan Mortgage
8.60%, 4/15/21
(cost $284,352)....................... 275 281,960
-----------
COMMERCIAL MORTGAGE BACKED SECURITIES - 1.5%
Morgan Stanley Capital I
6.59%, 10/3/30
(cost $448,855)....................... 460 449,905
-----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 42.9%
Federal Home Loan Mortgage
6.00%, 2/1/29......................... 288 264,069
6.50%, 12/1/28........................ 496 469,102
7.00%, 11/1/29........................ 785 758,837
7.00%, 12/1/29........................ 125 120,407
7.50%, 3/1/30......................... 497 490,410
8.00%, 2/1/30......................... 893 898,317
9.00%, 11/1/06........................ 56 57,331
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
19
<PAGE>
INVESTMENT GRADE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS (CON'T.) -
Federal National Mortgage Assn.
4.75%, 11/14/03....................... $ 600 $ 559,314
6.00%, 12/1/13........................ 438 414,752
6.50%, TBA............................ 550 518,546
7.00%, 6/1/29......................... 461 445,728
7.00%, 12/1/29........................ 300 289,565
7.00%, 1/1/30......................... 299 288,721
7.13%, 3/15/07........................ 500 500,975
7.50%, 10/1/29........................ 483 476,308
7.50%, 2/1/30......................... 500 492,858
9.50%, 6/1/03......................... 50 50,652
Government National Mortgage Assn.
7.00%, 12/15/14....................... 490 484,144
7.00%, 2/15/28........................ 368 358,033
7.00%, 7/15/29........................ 246 239,296
7.50%, 3/15/30........................ 499 495,317
8.00%, 1/15/30........................ 549 554,464
8.00%, 5/15/30........................ 475 479,774
U.S. Treasury Bonds
6.63%, 2/15/27........................ 1,225 1,300,607
8.13%, 8/15/19........................ 1,000 1,208,910
U.S. Treasury Notes
7.00%, 7/15/06........................ 425 440,406
-----------
Total U.S. Government & Agency
Obligations
(cost $12,692,340)...................... 12,656,843
-----------
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED) VALUE
<S> <C> <C>
SHORT TERM INVESTMENTS - 10.2%
COMMERCIAL PAPER - 3.9%
American Express Credit Corp.
6.51%, 7/17/00........................ $ 493 $ 493,000
Associates Corp. of North America
6.53%, 7/20/00........................ 260 259,104
Household Finance Corp.
6.50%, 7/6/00......................... 417 416,707
-----------
1,168,811
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MUTUAL FUNDS - 6.3%
Federated Prime Obligations............. 928,599 928,599
SSGA Money Market Fund.................. 926,065 926,065
---------------
1,854,664
---------------
Total Short Term Investments
(amortized cost $3,023,475)........... 3,023,475
---------------
TOTAL INVESTMENTS - 101.0%
(cost $30,160,814).................... 29,833,459
Other assets less
liabilities - (1.0)%.................. (300,156)
---------------
NET ASSETS - 100.0%..................... $ 29,533,303
===============
TBA = To Be Announced
</TABLE>
(1) Eligible for resale 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, 2000 these securities
amounted to $853,504, representing 2.9% of net assets.
--------------------------------------------------------------------------------
See Notes to Financial Statements.
20
<PAGE>
REAL ESTATE FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS - 97.5%
APARTMENTS - 23.9%
Apartment Investment & Management Co.... 12,802 $ 553,686
AvalonBay Communities, Inc.............. 16,713 697,768
BRE Properties, Inc..................... 13,703 395,674
Equity Residential Properties Trust..... 8,285 381,110
----------
2,028,238
----------
DIVERSIFIED - 3.1%
Franchise Finance Corp. of America...... 11,275 259,325
----------
HOTELS - 3.6%
Host Marriott Corp...................... 16,112 151,050
MeriStar Hospitality Corp............... 7,553 158,613
----------
309,663
----------
OFFICE - 28.9%
Equity Office Properties Trust.......... 16,354 450,757
Highwoods Properties, Inc............... 16,209 389,016
Mack-Cali Realty Corp................... 10,133 260,291
Reckson Associates Realty Corp.......... 16,689 396,364
SL Green Realty Corp.................... 24,230 648,153
Spieker Properties, Inc................. 6,649 305,854
----------
2,450,435
----------
REGIONAL MALLS - 11.1%
CBL & Associates Properties, Inc........ 10,678 266,282
General Growth Properties, Inc.......... 9,784 310,642
Macerich Co............................. 10,179 224,574
Simon Property Group, Inc............... 6,430 142,666
----------
944,164
----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
SHOPPING CENTERS - 9.5%
Developers Diversified Realty Corp...... 13,216 $ 197,414
IRT Property Co......................... 21,390 181,815
Kimco Realty Corp....................... 10,423 427,343
----------
806,572
----------
STORAGE - 4.6%
Public Storage, Inc..................... 16,481 386,274
----------
WAREHOUSE &
INDUSTRIAL - 12.8%
CenterPoint Properties Corp............. 8,168 332,846
Duke-Weeks Realty Corp.................. 7,839 175,398
First Industrial Realty Trust, Inc...... 6,635 195,732
ProLogis Trust.......................... 17,926 382,048
----------
1,086,024
----------
Total Real Estate Investment Trusts
(cost $7,857,120)..................... 8,270,695
----------
SHORT TERM INVESTMENTS - 1.5%
MUTUAL FUNDS - 1.5%
SSGA Money Market Fund
(amortized cost $131,832)............. 131,832 131,832
----------
TOTAL INVESTMENTS - 99.0%
(cost $7,988,952)..................... 8,402,527
Other assets less liabilities - 1.0%.... 81,903
----------
NET ASSETS - 100.0%..................... $8,484,430
==========
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
21
<PAGE>
BLUE CHIP MID CAP FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCK - 98.3%
AIR TRAVEL - 2.3%
Ryanair Holdings Plc ADR*............... 4,300 $ 156,950
Southwest Airlines Co................... 12,300 232,931
----------
389,881
----------
APPAREL & TEXTILES - 0.4%
Liz Claiborne, Inc...................... 1,850 65,213
----------
BROADCASTING - 3.0%
E.W. Scripps Co. Class A................ 3,600 177,300
Pegasus Communications Corp.
Class A*.............................. 4,600 225,688
Univision Communications, Inc.
Class A*.............................. 920 95,220
----------
498,208
----------
BUSINESS SERVICES - 16.1%
Cadence Design Systems, Inc.*........... 14,900 303,588
Ceridian Corp.*......................... 16,100 387,406
Cintas Corp............................. 2,000 73,375
Convergys Corp.*........................ 5,200 269,750
Critical Path, Inc.*.................... 1,300 75,806
DeVry, Inc.*............................ 5,900 155,981
Gartner Group, Inc. Class A............. 18,700 224,400
Herman Miller, Inc...................... 7,200 186,300
Iron Mountain, Inc.*.................... 5,850 198,900
Keane, Inc.*............................ 4,800 103,800
Lamar Advertising Co. Class A*.......... 2,550 110,447
Manpower, Inc........................... 11,400 364,800
VeriSign, Inc.*......................... 1,544 272,472
----------
2,727,025
----------
CHEMICALS - 1.8%
Eastman Chemical Co..................... 3,240 154,710
Vulcan Materials Co..................... 3,500 149,406
----------
304,116
----------
COMMUNICATION SERVICES - 9.3%
Adelphia Communications Corp.
Class A*................................ 4,250 199,219
Allegiance Telecom, Inc.*............... 1,840 117,760
American Tower Corp. Class A*........... 10,500 437,719
Crown Castle International Corp.*....... 700 25,550
Harris Corp............................. 700 23,292
<CAPTION>
SHARES VALUE
<S> <C> <C>
McLeodUSA, Inc.*........................ 12,200 $ 252,387
Nextel Partners, Inc. Class A*.......... 5,500 179,094
RCN Corp.*.............................. 2,450 62,169
TeleCorp PCS, Inc. Class A*............. 3,150 126,984
Western Wireless Corp. Class A.......... 2,600 141,700
----------
1,565,874
----------
COMPUTERS & BUSINESS EQUIPMENT - 3.4%
Affiliated Computer Services, Inc.
Class A*.............................. 3,500 115,719
Cabletron Systems, Inc.*................ 13,950 352,237
Handspring, Inc.*....................... 3,800 102,600
----------
570,556
----------
CONTAINERS & GLASS - 1.4%
Sealed Air Corp.*....................... 4,600 240,925
----------
DRUGS & HEALTH CARE - 13.5%
Becton, Dickinson & Co.................. 2,700 77,456
Biomet, Inc............................. 7,150 274,828
Forest Laboratories, Inc.*.............. 2,300 232,300
Gilead Sciences, Inc.*.................. 2,600 184,925
Health Management Associates, Inc.
Class A*.............................. 12,400 161,975
Human Genome Sciences, Inc.*............ 1,390 185,391
IDEC Pharmaceuticals Corp.*............. 1,300 152,506
Immunex Corp.*.......................... 6,675 329,995
McKesson HBOC, Inc...................... 6,500 136,094
Quest Diagnostics, Inc.*................ 2,500 186,875
St. Jude Medical, Inc.*................. 3,500 160,563
Tenet Healthcare Corp................... 7,050 190,350
----------
2,273,258
----------
ELECTRIC UTILITIES - 0.8%
Calpine Corp.*.......................... 2,100 138,075
----------
ELECTRONICS - 13.4%
Analog Devices, Inc.*................... 2,400 182,400
Flextronics International Ltd.*......... 4,500 309,094
Jabil Circuit, Inc.*.................... 4,800 238,200
Lam Research Corp.*..................... 3,700 138,750
Lattice Semiconductor Corp.*............ 1,100 76,038
Molex, Inc. Class A..................... 900 31,500
Novellus Systems, Inc.*................. 3,300 186,656
Rambus, Inc.*........................... 1,100 113,300
Sanmina Corp.*.......................... 4,700 401,850
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
22
<PAGE>
BLUE CHIP MID CAP FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
ELECTRONICS (Con't.) -
SCI Systems, Inc.*...................... 3,200 $ 125,400
Tektronix, Inc.......................... 2,900 214,600
Teradyne, Inc.*......................... 2,070 152,145
Vitesse Semiconductor Corp.*............ 1,300 95,631
----------
2,265,564
----------
FINANCIAL SERVICES - 3.6%
Legg Mason, Inc......................... 3,300 165,000
MBIA, Inc............................... 3,600 173,475
State Street Corp....................... 2,600 275,763
----------
614,238
----------
HOTELS & RESTAURANTS - 0.7%
Starbucks Corp.*........................ 3,300 126,019
----------
INSURANCE - 2.2%
Ace Ltd................................. 13,100 366,800
----------
MANUFACTURING - 1.0%
Danaher Corp............................ 3,400 168,088
----------
OIL - 2.7%
Anadarko Petroleum Corp................. 5,500 271,219
Suncor Energy, Inc...................... 7,800 181,837
----------
453,056
----------
OIL SERVICES - 4.8%
Global Marine, Inc.*.................... 5,900 166,306
Nabors Industries, Inc.*................ 2,800 116,375
R&B Falcon Corp.*....................... 15,300 360,506
Smith International, Inc.*.............. 1,200 87,375
Weatherford International, Inc.......... 2,150 85,597
----------
816,159
----------
PAPER - 1.9%
Abitibi-Consolidated, Inc............... 17,900 167,812
Bowater, Inc............................ 3,460 152,673
----------
320,485
----------
PETROLEUM SERVICES - 2.5%
Grant Prideco, Inc.*.................... 3,250 81,250
Transocean Sedco Forex, Inc............. 6,400 342,000
----------
423,250
----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
REAL ESTATE - 1.3%
HomeStore.com, Inc.*.................... 2,700 $ 78,806
Starwood Hotels & Resorts
Worldwide, Inc. Class B............... 4,500 146,532
----------
225,338
----------
RETAIL - 5.9%
Dollar General Corp..................... 20,300 395,850
Family Dollar Stores, Inc............... 6,800 133,025
Intimate Brands, Inc. Class A........... 13,700 270,575
RadioShack Corp......................... 4,300 203,712
----------
1,003,162
----------
SCIENTIFIC INSTRUMENTS - 1.2%
Waters Corp.*........................... 1,620 202,196
----------
SOFTWARE - 5.1%
Intuit, Inc.*........................... 5,400 223,425
Macromedia, Inc.*....................... 640 61,880
Rational Software Corp.*................ 4,100 381,044
Vignette Corp.*......................... 3,600 187,256
----------
853,605
----------
Total Common Stock
(cost $15,026,529).................... 16,611,091
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED)
<S> <C> <C>
SHORT TERM INVESTMENTS - 8.4%
REPURCHASE AGREEMENT - 8.4%
State Street Bank and Trust Company,
4.25%, 7/03/00 (collateralized by
$1,435,000 U.S. Treasury Note, 6.125%,
09/30/00 with a value of $1,454,731)
(amortized cost $1,422,000)........... $1,422 1,422,000
--------------
TOTAL INVESTMENTS - 106.7%
(cost $16,448,529).................... 18,033,091
Other assets less liabilities - (6.7%) (1,137,957)
--------------
NET ASSETS - 100.0%..................... $ 16,895,134
==============
</TABLE>
*Non-income producing security
ADR = American Depositary Receipt
--------------------------------------------------------------------------------
See Notes to Financial Statements.
23
<PAGE>
INVESTORS FOUNDATION FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCK - 97.8%
AEROSPACE - 1.6%
United Technologies Corp................ 1,400 $ 82,425
----------
AIR TRAVEL - 0.3%
AMR Corp................................ 600 15,863
----------
ALUMINUM - 0.3%
Alcoa, Inc.............................. 600 17,400
----------
AUTO PARTS - 0.8%
Delphi Automotive Systems Corp.......... 1,400 20,388
Eaton Corp.............................. 300 20,100
Visteon Corp. *......................... 105 1,270
----------
41,758
----------
AUTOMOBILES - 0.7%
Ford Motor Co........................... 800 34,400
----------
BANKS - 2.1%
CullenFrost Bankers, Inc................ 1,200 31,575
Pacific Century Financial Corp.......... 2,000 29,250
Wachovia Corp........................... 800 43,400
----------
104,225
----------
BROADCASTING - 1.0%
AT&T Corp.-Liberty Media Group
Class A............................... 1,700 41,225
Pegasus Communications Corp. *.......... 200 9,812
----------
51,037
----------
BUSINESS SERVICES - 2.6%
America Online, Inc. *.................. 900 47,475
First Data Corp......................... 700 34,737
IMS Health, Inc......................... 1,600 28,800
VeriSign, Inc. *........................ 108 18,974
----------
129,986
----------
CHEMICALS - 1.5%
E.I. du Pont de Nemours and Co.......... 500 21,875
Engelhard Corp.......................... 1,700 29,006
W.R. Grace & Co. *...................... 1,900 23,038
----------
73,919
----------
COMMUNICATIONS EQUIPMENT - 3.8%
Cisco Systems, Inc. *................... 3,000 190,687
----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMUNICATION SERVICES - 4.1%
3Com Corp. *............................ 400 $ 23,050
American Tower Corp. Class A *.......... 400 16,675
EchoStar Communications Corp. Class A
*..................................... 400 13,244
Global Crossing Ltd. *.................. 500 13,156
JDS Uniphase Corp. *.................... 200 23,975
Lucent Technologies, Inc................ 1,000 59,250
SBC Communications, Inc................. 784 33,908
VoiceStream Wireless Corp. *............ 200 23,259
----------
206,517
----------
COMPUTERS & BUSINESS EQUIPMENT - 8.1%
Cabletron Systems, Inc. *............... 1,300 32,825
Dell Computer Corp. *................... 1,700 83,831
EMC Corp. *............................. 800 61,550
Handspring, Inc. *...................... 500 13,500
Hewlett-Packard Co...................... 600 74,925
International Business Machines Corp.... 900 98,606
Sun Microsystems, Inc. *................ 500 45,469
----------
410,706
----------
CONSTRUCTION MATERIALS - 0.3%
Illinois Tool Works, Inc................ 300 17,100
----------
COSMETICS & TOILETRIES - 1.2%
Kimberly-Clark Corp..................... 1,100 63,112
----------
DIVERSIFIED - 1.4%
Honeywell International, Inc............ 500 16,844
Tyco International Ltd.................. 1,200 56,850
----------
73,694
----------
DRUGS & HEALTH CARE - 11.9%
Abbott Laboratories..................... 1,300 57,931
American Home Products Corp............. 800 47,000
Becton, Dickinson & Co.................. 1,300 37,294
Boston Scientific Corp. *............... 800 17,550
Bristol-Myers Squibb Co................. 400 23,300
Cardinal Health, Inc.................... 400 29,600
Forest Laboratories, Inc. *............. 400 40,400
Genzyme Corp. *......................... 900 53,494
Immunex Corp. *......................... 700 34,606
Johnson & Johnson....................... 200 20,375
Merck & Co., Inc........................ 700 53,637
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
24
<PAGE>
INVESTORS FOUNDATION FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNUADITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
DRUGS & HEALTH CARE (Con't.) -
Pfizer, Inc............................. 1,400 $ 67,200
Pharmacia Corp.......................... 1,895 97,948
Tenet Healthcare Corp................... 800 21,600
----------
601,935
----------
ELECTRIC UTILITIES - 2.1%
Calpine Corp. *......................... 400 26,300
Pinnacle West Capital Corp.............. 700 23,713
Unicom Corp............................. 1,400 54,162
----------
104,175
----------
ELECTRICAL EQUIPMENT - 4.4%
Black & Decker Corp..................... 400 15,725
General Electric Co..................... 3,900 206,700
----------
222,425
----------
ELECTRONICS - 8.6%
Analog Devices, Inc. *.................. 400 30,400
Corning, Inc............................ 150 40,481
General Motors Corp. Class H *.......... 178 15,619
Intel Corp.............................. 1,500 200,531
Micron Technology, Inc. *............... 700 61,644
RF Micro Devices, Inc. *................ 100 8,763
Solectron Corp. *....................... 1,000 41,875
Teradyne, Inc. *........................ 500 36,750
----------
436,063
----------
FINANCIAL SERVICES - 8.4%
A.G. Edwards, Inc....................... 1,100 42,900
Citigroup, Inc.......................... 1,900 114,475
Fannie Mae.............................. 600 31,312
Goldman Sachs Group, Inc................ 200 18,975
KeyCorp................................. 2,000 35,250
Marsh & McLennan Cos., Inc.............. 500 52,219
Merrill Lynch & Co., Inc................ 700 80,500
Morgan Stanley Dean Witter & Co......... 600 49,950
----------
425,581
----------
FOOD & BEVERAGES - 2.9%
Anheuser-Busch Cos., Inc................ 500 37,344
Coca-Cola Co............................ 300 17,231
Nabisco Group Holdings Corp............. 1,100 28,531
PepsiCo, Inc............................ 1,400 62,213
----------
145,319
----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
GAS & PIPELINE UTILITIES - 0.9%
El Paso Energy Corp..................... 600 $ 30,563
Enron Corp.............................. 200 12,900
----------
43,463
----------
HEALTH SERVICES - 0.6%
CIGNA Corp.............................. 300 28,050
----------
HOUSEHOLD PRODUCTS - 0.4%
Procter & Gamble Co..................... 400 22,900
----------
INDUSTRIAL - 0.3%
Pall Corp............................... 700 12,950
----------
INSURANCE - 1.8%
American International Group, Inc....... 800 94,000
----------
MINING - 0.3%
Freeport-McMoRan Copper & Gold Class A
*..................................... 1,900 17,338
----------
OIL - 4.4%
Conoco, Inc. Class B.................... 1,600 39,300
Exxon Mobil Corp........................ 1,600 125,600
Kerr-McGee Corp......................... 500 29,469
Union Pacific Resources Group, Inc...... 1,300 28,600
----------
222,969
----------
PAPER - 0.4%
Temple-Inland, Inc...................... 500 21,000
----------
PETROLEUM SERVICES - 0.4%
Helmerich & Payne, Inc.................. 600 22,425
----------
PUBLISHING - 0.7%
Gannett Co., Inc........................ 600 35,888
----------
RETAIL - 4.6%
Best Buy Co., Inc. *.................... 300 18,975
Dollar General Corp..................... 1,400 27,300
eBay, Inc. *............................ 465 25,255
Home Depot, Inc......................... 350 17,478
Target Corp............................. 600 34,800
Wal-Mart Stores, Inc.................... 1,900 109,488
----------
233,296
----------
RETAIL GROCERY - 0.5%
Safeway, Inc. *......................... 600 27,075
----------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
25
<PAGE>
INVESTORS FOUNDATION FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNUADITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
SOFTWARE - 6.2%
BMC Software, Inc. *.................... 400 $ 14,594
Computer Associates
International, Inc.................... 400 20,475
Microsoft Corp. *....................... 2,400 192,000
Oracle Corp. *.......................... 800 67,250
Phone.com, Inc. *....................... 300 19,537
----------
313,856
----------
TELECOMMUNICATIONS - 7.0%
AT&T Corp. *............................ 1,000 31,625
Bell Atlantic Corp...................... 1,500 76,218
Comverse Technology, Inc. *............. 500 46,500
Nortel Networks Corp.................... 900 61,425
Sprint Corp. (Fon Group)................ 1,200 61,200
Sprint Corp. (PCS Group) *.............. 500 29,750
WorldCom, Inc. *........................ 1,050 48,169
----------
354,887
----------
TOBACCO - 1.0%
Philip Morris Cos, Inc.................. 1,900 50,469
----------
TRUCKING & FREIGHT FORWARDING - 0.2%
USFreightways Corp...................... 500 12,281
----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
TOTAL COMMON STOCK
(cost $4,715,986)..................... $4,961,174
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED)
<S> <C> <C>
SHORT TERM INVESTMENTS - 1.2%
REPURCHASE AGREEMENT - 1.2%
State Street Bank and Trust Company
4.25%, 7/03/00 (collateralized by
$65,000 U.S. Treasury Note, 6.125%,
09/30/00, with a value of $65,894)
(amortized cost $62,000).............. $ 62 62,000
-------------
TOTAL INVESTMENTS - 99.0%
(cost $4,777,986)..................... 5,023,174
Other assets less liabilities - 1.0% 53,207
-------------
NET ASSETS - 100.0%..................... $ 5,076,381
=============
*Non-income producing security
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
26
<PAGE>
SELECT EQUITY FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCK - 96.7%
ALUMINUM - 2.1%
Alcoa, Inc.............................. 6,200 $ 179,800
----------
BROADCASTING - 3.0%
AT&T Corp.-Liberty Media Group
Class A*.............................. 10,700 259,475
----------
BUSINESS SERVICES - 2.8%
America Online, Inc.*................... 4,500 237,375
----------
CHEMICALS - 1.9%
Dow Chemical Co......................... 5,400 163,013
----------
COMMUNICATION SERVICES - 18.2%
Cisco Systems, Inc.*.................... 6,100 387,731
Global Crossing Ltd.*................... 8,100 213,131
Lucent Technologies, Inc................ 3,700 219,225
McLeodUSA, Inc.*........................ 11,900 246,181
Nokia Oyj ADR........................... 5,000 249,688
Viacom, Inc. Class B*................... 3,580 244,111
----------
1,560,067
----------
COMPUTERS & BUSINESS EQUIPMENT - 8.0%
Dell Computer Corp.*.................... 3,500 172,594
EMC Corp.*.............................. 2,500 192,344
Hewlett-Packard Co...................... 2,600 324,675
----------
689,613
----------
DRUGS & HEALTH CARE - 14.2%
American Home Products Corp............. 5,600 329,000
Guidant Corp.*.......................... 4,800 237,600
Immunex Corp.*.......................... 6,800 336,175
Pharmacia Corp.......................... 6,100 315,294
----------
1,218,069
----------
ELECTRONICS - 15.5%
Intel Corp.............................. 3,200 427,800
Micron Technology, Inc.*................ 4,200 369,862
Solectron Corp.*........................ 6,600 276,375
Teradyne, Inc.*......................... 3,500 257,250
----------
1,331,287
----------
<CAPTION>
SHARES VALUE
<S> <C> <C>
FINANCIAL SERVICES - 13.3%
Citigroup, Inc.......................... 5,700 $ 343,425
Goldman Sachs Group, Inc................ 3,800 360,525
Morgan Stanley Dean Witter & Co......... 5,200 432,900
----------
1,136,850
----------
OIL - 4.5%
Exxon Mobil Corp........................ 4,900 384,650
----------
SOFTWARE - 4.1%
Microsoft Corp.*........................ 4,400 352,000
----------
TELECOMMUNICATIONS - 9.1%
Nortel Networks Corp.................... 5,500 375,375
WorldCom, Inc.*......................... 8,750 401,406
----------
776,781
----------
Total Common Stock
(cost $7,991,391)..................... 8,288,980
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000 OMITTED)
<S> <C> <C>
SHORT TERM INVESTMENTS - 2.0%
REPURCHASE AGREEMENT - 2.0%
State Street Bank and Trust Company
4.25%, 7/03/00 (collateralized by
$180,000 U.S. Treasury Note, 6.125%,
09/30/00, with a value of $182,475)
(amortized cost $174,000)............. $ 174 174,000
-------------
TOTAL INVESTMENTS - 98.7%
(cost $8,165,391)..................... 8,462,980
Other assets less liabilities - 1.3% 109,279
-------------
NET ASSETS - 100.0%..................... $ 8,572,259
=============
*Non-income producing security
ADR = American Depositary Receipt
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
27
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUN CAPITAL SUN CAPITAL
MONEY MARKET INVESTMENT GRADE
FUND BOND FUND
------------ ----------------
<S> <C> <C>
ASSETS
Investments in
securities, at
value................ $20,811,627 $29,833,459
Cash................... 500 500
Interest and dividends
receivable........... 38,448 379,686
Receivable for Fund
shares sold.......... -- 51,654
Receivable due from
adviser.............. 20,003 13,830
Receivable for
investments sold..... -- --
Other assets........... 5,505 12,050
----------- -----------
Total assets........... 20,876,083 30,291,179
----------- -----------
LIABILITIES
Payable for investments
purchased............ -- 725,906
Payable for Fund shares
redeemed............. 101,688 --
Accrued expenses and
other liabilities.... 23,077 31,970
----------- -----------
Total liabilities...... 124,765 757,876
----------- -----------
NET ASSETS............... $20,751,318 $29,533,303
=========== ===========
COMPOSITION OF NET ASSETS
Paid-in capital........ $20,753,448 $30,316,968
Undistributed net
investment income
(loss)............... -- 767
Accumulated net
realized gain (loss)
on investments....... (2,130) (457,077)
Net unrealized
appreciation
(depreciation) of
investments.......... -- (327,355)
----------- -----------
$20,751,318 $29,533,303
=========== ===========
Shares of beneficial
interest
outstanding.......... 20,753,448 3,159,723
=========== ===========
Net asset value,
offering price and
redemption price per
share (net assets/
shares of beneficial
interest
outstanding)......... $ 1.00 $ 9.35
=========== ===========
Investments in
securities, at
cost................. $20,811,627 $30,160,814
=========== ===========
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
28
<PAGE>
SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUN CAPITAL SUN CAPITAL SUN CAPITAL SUN CAPITAL
REAL ESTATE BLUE CHIP INVESTORS SELECT EQUITY
FUND MID CAP FUND FOUNDATION FUND FUND
----------- ------------ --------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Investments in
securities, at
value................ $8,402,527 $18,033,091 $5,023,174 $8,462,980
Cash................... 500 922 606 1,013
Interest and dividends
receivable........... 53,994 7,638 3,950 3,590
Receivable for Fund
shares sold.......... 24,632 105,455 24,218 98,116
Receivable due from
adviser.............. 21,193 23,604 31,876 27,016
Receivable for
investments sold..... -- 67,821 253,790 --
Other assets........... 4,807 2,630 2,581 2,596
---------- ----------- ---------- ----------
Total assets........... 8,507,653 18,241,161 5,340,195 8,595,311
---------- ----------- ---------- ----------
LIABILITIES
Payable for investments
purchased............ -- 1,320,014 239,052 --
Payable for Fund shares
redeemed............. 53 -- -- --
Accrued expenses and
other liabilities.... 23,170 26,013 24,762 23,052
---------- ----------- ---------- ----------
Total liabilities...... 23,223 1,346,027 263,814 23,052
---------- ----------- ---------- ----------
NET ASSETS............... $8,484,430 $16,895,134 $5,076,381 $8,572,259
========== =========== ========== ==========
COMPOSITION OF NET ASSETS
Paid-in capital........ $7,903,184 $13,962,403 $4,580,741 $7,374,909
Undistributed net
investment income
(loss)............... 221,734 (24,947) 3,089 (8,247)
Accumulated net
realized gain (loss)
on investments....... (54,063) 1,373,116 247,363 908,008
Net unrealized
appreciation
(depreciation) of
investments.......... 413,575 1,584,562 245,188 297,589
---------- ----------- ---------- ----------
$8,484,430 $16,895,134 $5,076,381 $8,572,259
========== =========== ========== ==========
Shares of beneficial
interest
outstanding.......... 813,460 1,149,592 448,062 656,348
========== =========== ========== ==========
Net asset value,
offering price and
redemption price per
share (net assets/
shares of beneficial
interest
outstanding)......... $ 10.43 $ 14.70 $ 11.33 $ 13.06
========== =========== ========== ==========
Investments in
securities, at
cost................. $7,988,952 $16,448,529 $4,777,986 $8,165,391
========== =========== ========== ==========
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
29
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUN CAPITAL SUN CAPITAL
MONEY MARKET INVESTMENT GRADE
FUND BOND FUND
------------ ----------------
<S> <C> <C>
Investment Income
Interest............... $532,532 $ 858,081
Dividends.............. -- --
-------- ---------
Total investment
income............... 532,532 858,081
-------- ---------
Expenses
Investment advisory
fee.................. 43,162 69,571
Custody and fund
accounting........... 21,880 28,345
Audit.................. 9,811 10,411
Legal.................. 22,568 30,373
Printing............... 3,106 2,506
Administration......... 28,592 28,592
Registration........... 30 157
Transfer agency........ 4,475 4,475
Trustees fees.......... 3,339 3,339
Insurance.............. 2,514 5,329
Miscellaneous fees..... 249 249
-------- ---------
Total expenses......... 139,726 183,347
-------- ---------
Less: Reduction of
advisory fees........ (43,162) (69,571)
Reimbursement of
operating
expenses........ (40,454) (26,813)
-------- ---------
Net expenses........... 56,110 86,963
-------- ---------
Net investment income
(loss)............... 476,422 771,118
-------- ---------
Realized and Unrealized
Gain (Loss) on
Investments
Net realized gain
(loss) on investment
transactions......... (201) (165,848)
Net unrealized
appreciation
(depreciation) of
investments.......... -- 258,989
-------- ---------
Net realized and
unrealized gain
(loss) on
investments.......... (201) 93,141
-------- ---------
NET INCREASE IN NET
ASSETS FROM OPERATIONS... $476,221 $ 864,259
======== =========
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
30
<PAGE>
SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUN CAPITAL SUN CAPITAL SUN CAPITAL SUN CAPITAL
REAL ESTATE BLUE CHIP INVESTORS SELECT EQUITY
FUND MID CAP FUND FOUNDATION FUND FUND
----------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Investment Income
Interest............... $ 3,411 $ 8,988 $ 1,162 $ 7,695
Dividends.............. 241,628 19,935 21,416 13,828
---------- ---------- ---------- ---------
Total investment
income............... 245,039 28,923 22,578 21,523
---------- ---------- ---------- ---------
Expenses
Investment advisory
fee.................. 33,844 43,097 16,241 24,809
Custody and fund
accounting........... 23,869 41,771 28,046 25,061
Audit.................. 10,411 8,111 8,111 8,111
Legal.................. 9,162 14,057 5,426 8,590
Printing............... 3,606 3,606 3,606 3,606
Administration......... 28,592 28,195 28,195 28,195
Registration........... 77 -- -- --
Transfer agency........ 4,475 4,475 4,475 4,475
Trustees fees.......... 3,339 3,288 3,288 3,288
Insurance.............. 2,086 1,207 1,136 1,156
Miscellaneous fees..... 249 249 249 249
---------- ---------- ---------- ---------
Total expenses......... 119,710 148,056 98,773 107,540
---------- ---------- ---------- ---------
Less: Reduction of
advisory fees........ (33,844) (43,097) (16,241) (24,809)
Reimbursement of
operating
expenses........ (41,334) (51,089) (63,043) (52,961)
---------- ---------- ---------- ---------
Net expenses........... 44,532 53,870 19,489 29,770
---------- ---------- ---------- ---------
Net investment income
(loss)............... 200,507 (24,947) 3,089 (8,247)
---------- ---------- ---------- ---------
Realized and Unrealized
Gain (Loss) on
Investments
Net realized gain
(loss) on investment
transactions......... (50,355) 1,212,597 237,347 947,748
Net unrealized
appreciation
(depreciation) of
investments.......... 992,203 606,134 (158,231) (758,325)
---------- ---------- ---------- ---------
Net realized and
unrealized gain
(loss) on
investments.......... 941,848 1,818,731 79,116 189,423
---------- ---------- ---------- ---------
NET INCREASE IN NET
ASSETS FROM OPERATIONS... $1,142,355 $1,793,784 $ 82,205 $ 181,176
========== ========== ========== =========
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
31
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET FUND
------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN
NET
ASSETS FROM OPERATIONS
Net investment
income............... $ 476,422 $ 284,851
Net realized gain
(loss) on investment
transactions......... (201) (1,902)
Net unrealized
appreciation
(depreciation) of
investments.......... -- --
------------ -----------
Net increase (decrease)
in net assets from
operations........... 476,221 282,949
------------ -----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income............... (476,422) (284,851)
Net realized gain on
investments.......... -- --
Capital................ -- --
------------ -----------
Net decrease in net
assets from
distributions........ (476,422) (284,851)
------------ -----------
SHARE TRANSACTIONS
Net proceeds from
sales................ 29,189,825 48,385,101
Net proceeds from
reinvestment of
distributions........ 476,422 284,851
Cost of shares
redeemed............. (22,885,573) (37,206,858)
------------ -----------
Net increase in net
assets from share
transactions......... 6,780,674 11,463,094
------------ -----------
Total increase in net
assets............... 6,780,473 11,461,192
NET ASSETS
Beginning of period.... 13,970,845 2,509,653
------------ -----------
End of period+......... $ 20,751,318 $13,970,845
============ ===========
SHARES OF BENEFICIAL
INTEREST
Shares sold............ 29,189,825 48,385,101
Shares issued to
shareholders from
reinvestment of
distributions........ 476,422 284,851
Shares redeemed........ (22,885,573) (37,206,858)
------------ -----------
Net increase........... 6,780,674 11,463,094
============ ===========
+Includes undistributed
net investment
income............... $ -- $ --
============ ===========
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
32
<PAGE>
SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT GRADE BOND FUND REAL ESTATE FUND
------------------------------------ ------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
---------------- ------------------ ---------------- ------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET
ASSETS FROM OPERATIONS
Net investment
income............... $ 771,118 $ 777,800 $ 200,507 $ 327,489
Net realized gain
(loss) on investment
transactions......... (165,848) (290,817) (50,355) (23,744)
Net unrealized
appreciation
(depreciation) of
investments.......... 258,989 (559,831) 992,203 (501,401)
----------- ----------- ---------- ----------
Net increase (decrease)
in net assets from
operations........... 864,259 (72,848) 1,142,355 (197,656)
----------- ----------- ---------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income............... (771,118) (777,800) -- (287,434)
Net realized gain on
investments.......... -- -- -- --
Capital................ -- -- -- (33,588)
----------- ----------- ---------- ----------
Net decrease in net
assets from
distributions........ (771,118) (777,800) -- (321,022)
----------- ----------- ---------- ----------
SHARE TRANSACTIONS
Net proceeds from
sales................ 11,091,845 8,769,466 1,400,201 1,520,721
Net proceeds from
reinvestment of
distributions........ 771,118 777,800 -- 361,030
Cost of shares
redeemed............. (606,925) (538,547) (146,718) (204,778)
----------- ----------- ---------- ----------
Net increase in net
assets from share
transactions......... 11,256,038 9,008,719 1,253,483 1,676,973
----------- ----------- ---------- ----------
Total increase in net
assets............... 11,349,179 8,158,071 2,395,838 1,158,295
NET ASSETS
Beginning of period.... 18,184,124 10,026,053 6,088,592 4,930,297
----------- ----------- ---------- ----------
End of period+......... $29,533,303 $18,184,124 $8,484,430 $6,088,592
=========== =========== ========== ==========
SHARES OF BENEFICIAL
INTEREST
Shares sold............ 1,194,808 917,293 148,053 160,793
Shares issued to
shareholders from
reinvestment of
distributions........ 82,991 81,135 -- 41,274
Shares redeemed........ (65,401) (56,341) (15,307) (22,074)
----------- ----------- ---------- ----------
Net increase........... 1,212,398 942,087 132,746 179,993
=========== =========== ========== ==========
+Includes undistributed
net investment
income............... $ 767 $ 767 $ 221,734 $ 21,227
=========== =========== ========== ==========
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
33
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BLUE CHIP MID CAP FUND
-------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999*
---------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN
NET
ASSETS FROM OPERATIONS
Net investment
income............... $ (24,947) $ (2,580)
Net realized gain
(loss) on investment
transactions......... 1,212,597 363,732
Net unrealized
appreciation
(depreciation) of
investments.......... 606,134 978,428
----------- ----------
Net increase (decrease)
in net assets from
operations........... 1,793,784 1,339,580
----------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income............... -- --
Net realized gain on
investments.......... -- (200,633)
----------- ----------
Net decrease in net
assets from
distributions........ -- (200,633)
----------- ----------
SHARE TRANSACTIONS
Net proceeds from
sales................ 9,008,990 5,507,059
Net proceeds from
reinvestment of
distributions........ -- 200,633
Cost of shares
redeemed............. (687,810) (66,469)
----------- ----------
Net increase in net
assets from share
transactions......... 8,321,180 5,641,223
----------- ----------
Total increase in net
assets............... 10,114,964 6,780,170
NET ASSETS
Beginning of period.... 6,780,170 --
----------- ----------
End of period+......... $16,895,134 $6,780,170
=========== ==========
SHARES OF BENEFICIAL
INTEREST
Shares sold............ 644,891 540,109
Shares issued to
shareholders from
reinvestment of
distributions........ -- 17,371
Shares redeemed........ (46,533) (6,246)
----------- ----------
Net increase........... 598,358 551,234
=========== ==========
+Includes undistributed
net investment income
(loss)............... $ (24,947) $ --
=========== ==========
</TABLE>
* For the period from September 1, 1999 (commencement of operations) to
December 31, 1999.
--------------------------------------------------------------------------------
See Notes to Financial Statements.
34
<PAGE>
SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTORS FOUNDATION FUND SELECT EQUITY FUND
------------------------------------- -------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999* (UNAUDITED) DECEMBER 31, 1999*
---------------- ------------------- ---------------- -------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET
ASSETS FROM OPERATIONS
Net investment
income............... $ 3,089 $ 5,159 $ (8,247) $ (816)
Net realized gain
(loss) on investment
transactions......... 237,347 12,389 947,748 (39,740)
Net unrealized
appreciation
(depreciation) of
investments.......... (158,231) 403,419 (758,325) 1,055,914
---------- ---------- ---------- ----------
Net increase (decrease)
in net assets from
operations........... 82,205 420,967 181,176 1,015,358
---------- ---------- ---------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income............... -- (5,159) -- --
Net realized gain on
investments.......... -- (2,373) -- --
---------- ---------- ---------- ----------
Net decrease in net
assets from
distributions........ -- (7,532) -- --
---------- ---------- ---------- ----------
SHARE TRANSACTIONS
Net proceeds from
sales................ 1,207,601 3,463,017 3,442,769 4,173,176
Net proceeds from
reinvestment of
distributions........ -- 7,532 -- --
Cost of shares
redeemed............. (80,424) (16,985) (191,299) (48,921)
---------- ---------- ---------- ----------
Net increase in net
assets from share
transactions......... 1,127,177 3,453,564 3,251,470 4,124,255
---------- ---------- ---------- ----------
Total increase in net
assets............... 1,209,382 3,866,999 3,432,646 5,139,613
NET ASSETS
Beginning of period.... 3,866,999 -- 5,139,613 --
---------- ---------- ---------- ----------
End of period+......... $5,076,381 $3,866,999 $8,572,259 $5,139,613
========== ========== ========== ==========
SHARES OF BENEFICIAL
INTEREST
Shares sold............ 109,821 346,363 263,068 410,964
Shares issued to
shareholders from
reinvestment of
distributions........ -- 697 -- --
Shares redeemed........ (7,204) (1,615) (13,404) (4,280)
---------- ---------- ---------- ----------
Net increase........... 102,617 345,445 249,664 406,684
========== ========== ========== ==========
+Includes undistributed
net investment
income............... $ 3,089 $ -- $ (8,247) $ --
========== ========== ========== ==========
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
35
<PAGE>
FINANCIAL HIGHLIGHTS
SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
SUN CAPITAL SUN CAPITAL
MONEY MARKET FUND INVESTMENT GRADE BOND FUND
------------------------------- -------------------------------
SIX MONTHS YEAR PERIOD SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
6/30/00^ 12/31/99 12/31/98* 6/30/00^ 12/31/99 12/31/98*
---------- -------- --------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $1.000 $ 9.340 $ 9.970 $10.000
------- ------- ------ ------- ------- -------
Income (Loss) from
Investment Operations:
Net investment
income............... 0.028 0.045 0.003 0.355 0.576 0.034
Net realized and
unrealized gain (loss)
on investments....... -- -- -- 0.010 (0.630) (0.030)
------- ------- ------ ------- ------- -------
Total from Investment
Operations........... 0.028 0.045 0.003 0.365 (0.054) 0.004
------- ------- ------ ------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment
income............... (0.028) (0.045) (0.003) (0.355) (0.576) (0.034)
Net realized gain on
investments.......... -- -- -- -- -- --
Capital................ -- -- -- -- -- --
------- ------- ------ ------- ------- -------
Total distributions.... (0.028) (0.045) (0.003) (0.355) (0.576) (0.034)
------- ------- ------ ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $1.000 $ 9.350 $ 9.340 $ 9.970
======= ======= ====== ======= ======= =======
TOTAL RETURN(b).......... 2.76% 4.63% 0.31% 3.45% (0.56)% 0.04%
======= ======= ====== ======= ======= =======
RATIOS AND SUPPLEMENTAL
DATA:
Net Assets, End of Period
(000's)................ $20,751 $13,971 $2,510 $29,533 $18,184 $10,026
Ratios to average net
assets:
Net expenses(a)........ 0.65% 0.65% 0.65% 0.75% 0.75% 0.75%
Gross expenses(a) ..... 1.62% 2.70% 12.29% 1.58% 1.98% 4.10%
Net investment income
(loss)(a) ........... 5.52% 4.69% 4.48% 6.65% 6.00% 5.01%
Portfolio turnover
rate................... N/A N/A N/A 34% 78% 3%
</TABLE>
^ Unaudited
* For the period from December 7, 1998 (commencement of operations) to
December 31, 1998.
** For the period from September 1, 1999 (commencement of operations) to
December 31, 1999.
(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.
36
<PAGE>
SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SUN CAPITAL SUN CAPITAL
SUN CAPITAL BLUE CHIP MID CAP INVESTORS FOUNDATION SUN CAPITAL
REAL ESTATE FUND FUND FUND SELECT EQUITY FUND
------------------------------- ---------------------- ---------------------- ----------------------
SIX MONTHS YEAR PERIOD SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
6/30/00^ 12/31/99 12/31/98* 6/30/00^ 12/31/99** 6/30/00^ 12/31/99** 6/30/00^ 12/31/99**
---------- -------- --------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 8.940 $9.850 $10.000 $12.300 $10.000 $11.190 $10.000 $12.640 $10.000
------- ------ ------- ------- ------- ------- ------- ------- -------
Income (Loss) from
Investment Operations:
Net investment
income............... 0.241 0.477 0.082 (0.022) -- 0.007 0.015 (0.013) --
Net realized and
unrealized gain (loss)
on investments....... 1.249 (0.888) (0.152) 2.422 2.683 0.133 1.197 0.433 2.640
------- ------ ------- ------- ------- ------- ------- ------- -------
Total from Investment
Operations........... 1.490 (0.411) (0.070) 2.400 2.683 0.140 1.212 0.420 2.640
------- ------ ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment
income............... -- (0.447) (0.080) -- -- -- (0.015) -- --
Net realized gain on
investments.......... -- -- -- -- (0.383) -- (0.007) -- --
Capital................ -- (0.052) -- -- -- -- -- -- --
------- ------ ------- ------- ------- ------- ------- ------- -------
Total distributions.... -- (0.499) (0.080) -- (0.383) -- (0.022) -- --
------- ------ ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $10.430 $8.940 $ 9.850 $14.700 $12.300 $11.330 $11.190 $13.060 $12.640
======= ====== ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN(b).......... 16.67% (3.98)% (0.71)% 19.51% 27.07% 1.25% 12.13% 3.32% 26.40%
======= ====== ======= ======= ======= ======= ======= ======= =======
RATIOS AND SUPPLEMENTAL
DATA:
Net Assets, End of Period
(000's)................ $ 8,484 $6,089 $ 4,930 $16,895 $ 6,780 $ 5,076 $ 3,867 $ 8,572 $ 5,140
Ratios to average net
assets:
Net expenses(a)........ 1.25% 1.25% 1.25% 1.00% 1.00% 0.90% 0.90% 0.90% 0.90%
Gross expenses(a) ..... 3.36% 3.39% 7.44% 2.74% 4.11% 4.56% 5.12% 3.25% 4.25%
Net investment income
(loss)(a) ........... 5.62% 6.09% 12.16% (0.46)% (0.16)% 0.14% 0.46% (0.25)% (0.06)%
Portfolio turnover
rate................... 6% 13% 2% 83% 51% 48% 31% 107% 51%
</TABLE>
37
<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 currently consists of six series (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"), Sun Capital Real
Estate Fund ("Real Estate Fund"), Sun Capital Blue Chip Mid Cap Fund ("Blue Chip
Mid Cap Fund"), Sun Capital Investors Foundation Fund ("Investors Foundation
Fund") and Sun Capital Select Equity Fund ("Select Equity Fund"). Each of the
Funds, other than the Real Estate Fund and the Select Equity Fund, are
classified as diversified funds under the 1940 Act.
NOTE B -- SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America 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 sale price, or, if no sales occurred on that day, at the mean between the
closing bid and asked prices. 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.
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
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
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.
At December 31, 1999, the following Funds have available for federal income tax
purposes capital loss carryovers which can be used to offset certain future
realized capital gains.
<TABLE>
<CAPTION>
EXPIRES DECEMBER 31,
---------------------------------
2006 2007
--------------- ---------------
<S> <C> <C>
Money Market Fund........................................... $27 $ 1,902
Investment Grade Bond Fund.................................. -- 195,936
Select Equity Fund.......................................... -- 39,497
</TABLE>
Under current tax law, certain capital losses realized after October 31 within
the taxable year may be deferred and treated as occurring on the first day of
the following tax year. For the tax period ended December 31, 1999 the
Investment Grade Bond Fund elected to defer $68,796 in net capital losses
arising between November 1, 1999 and December 31, 1999.
DOLLAR ROLL TRANSACTIONS
The Investment Grade Bond Fund may enter into dollar roll transactions with
financial institutions to take advantage of opportunities in the mortgage
market. The Fund will only enter into "covered" rolls. A "covered" roll is a
specific type of dollar roll for which there is an offsetting cash position or
liquid security position. A dollar roll transaction involves a sale by the Fund
of securities that it holds with an agreement by the Fund to repurchase similar
securities at an agreed upon price and date. The securities repurchased will be
substantially similar as to type, coupon and maturity as those sold. The Fund is
paid a fee for entering into a dollar roll transaction, that is accrued as
income over the life of the dollar roll contract. During the period between the
sale and repurchase, the Fund will not be entitled to receive interest and
principal payments on the securities sold. The proceeds of the sale will
generally be invested in additional instruments for the Fund, and the income
from these investments, together with any additional fee income received on the
dollar roll transaction, will generally exceed the interest income that would
have been earned on the securities sold. Dollar roll transactions involve the
risk that the market value of the securities sold by the Fund may decline below
the repurchase price of those similar securities which the Fund is obligated to
purchase or that the return earned by the Fund with the proceeds of a dollar
roll may not exceed transaction costs.
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
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 a 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.
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, Blue Chip Mid Cap
Fund, Investors Foundation Fund and Select Equity Fund distribute net investment
income, if any, at least 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. These differences, which may result in
distribution reclassifications, are primarily due to differing treatments for
non-taxable dividends, capital loss carryforwards and losses deferred due to
wash sales. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may affect
the per-share allocation between net investment income and realized and
unrealized gains (loss). Undistributed net investment income and accumulated
undistributed net realized gain (loss) on investments may include temporary book
and tax differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the following
year.
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) SUN CAPITAL ADVISERS TRUST
--------------------------------------------------------------------------------
NOTE C -- INVESTMENT ADVISORY AND OTHER RELATED PARTY AGREEMENTS
INVESTMENT ADVISORY AGREEMENT
Sun Capital Advisers, Inc. ("Adviser") is the investment adviser to the Money
Market Fund, Investment Grade Bond Fund and Real Estate Fund of the Trust under
an investment advisory agreement with the Trust dated November 4, 1998. The
Adviser is the investment adviser to the Blue Chip Mid Cap Fund, Investors
Foundation Fund and Select Equity Fund under separate investment advisory
agreements with the Trust dated August 27, 1999. 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"). Sun Life Financial Services of Canada Inc. ("Sun
Life Financial"), a holding company, is the ultimate parent of Sun Life of
Canada and the Adviser. The Adviser has retained Wellington Management Company
LLP at its own cost, as subadviser for Blue Chip Mid Cap Fund, Investors
Foundation Fund and Select Equity Fund.
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; 0.80% of the average daily net assets for the Blue Chip Mid
Cap Fund; 0.75% of the average daily net assets for the Investors Foundation
Fund; 0.75% of the average daily net assets for the Select Equity Fund. The
advisory fee for the Blue Chip Mid Cap Fund, Investors Foundation Fund and
Select Equity Fund declines to 0.75%, 0.70% and 0.70%, respectively, for daily
net assets exceeding $300 million.
LIMITATIONS
The Adviser has 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%, 1.25%, 1.00%, 0.90% and 0.90% of average daily net assets for the Money
Market Fund, Investment Grade Bond Fund, Real Estate Fund, Blue Chip Mid Cap
Fund, Investors Foundation Fund, and Select Equity Fund, respectively. The
Adviser has contractually agreed to maintain the above limits until May 1, 2001.
For the six months ended June 30, 2000, the Adviser waived all investment
advisory fees and reimbursed the Funds for other operating expenses in the
amounts of $40,454, $26,813, $41,334, $51,089, $63,043 and $52,961 for the Money
Market Fund, Investment Grade Bond Fund, Real Estate Fund, Blue Chip Mid Cap
Fund, Investors Foundation Fund, and Select Equity 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.
41
<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 the six months ended June 30, 2000 were as follows:
<TABLE>
<CAPTION>
NON- NON-
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
PURCHASES PURCHASES SALES SALES
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Investment Grade Bond
Fund....................... $ 8,848,535 $8,251,903 $3,409,989 $3,757,586
Real Estate Fund............ 1,819,184 -- 441,849 --
Blue Chip Mid Cap Fund...... 17,192,673 -- 8,988,745 --
Investors Foundation Fund... 3,129,521 -- 2,050,789 --
Select Equity Fund.......... 9,864,072 -- 6,836,481 --
</TABLE>
Purchases and sales, including maturities, of short-term securities by the Money
Market Fund for the six months ended June 30, 2000 were $79,654,517 and
$73,522,798, 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, 2000 were as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
GROSS UNREALIZED APPRECIATION
IDENTIFIED COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
--------------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
Money Market Fund......................... $20,811,627 $ -- $ -- $ --
Investment Grade Bond Fund................ 30,160,814 168,373 (495,728) (327,355)
Real Estate Fund.......................... 7,988,952 659,775 (246,200) 413,575
Blue Chip Mid Cap Fund.................... 16,448,529 2,022,285 (437,723) 1,584,562
Investors Foundation Fund................. 4,777,986 580,356 (335,168) 245,188
Select Equity Fund........................ 8,165,391 768,527 (470,938) 297,589
</TABLE>
42
<PAGE>
<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
DAVEY S. SCOON, ASSISTANT TREASURER
RICHARD GORDON, VICE PRESIDENT
HOWARD C. GREENE, VICE PRESIDENT
JOHN T. DONNELLY, VICE PRESIDENT
MAURA A. MURPHY, SECRETARY
NICOLE M. TREMBLAY, 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, TRANSFER AGENT
STATE STREET BANK & TRUST COMPANY
225 FRANKLIN STREET
BOSTON, MA 02110
LEGAL COUNSEL
HALE AND DORR LLP
60 STATE STREET
BOSTON, MA 02109
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.
