<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENT OF CONDITION -- June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
ASSETS:
<S> <C> <C> <C>
Investments in mutual funds: Shares Cost Value
------- ---------- ----------
AIM Variable Insurance Funds, Inc.
V.I. Capital Appreciation Fund ("AIM1")... 878 $ 34,675 $ 33,824
V.I. Growth Fund ("AIM2")................. 976 35,676 33,016
V.I. Growth and Income Fund ("AIM3")...... 1,986 64,044 63,418
V.I. International Equity Fund ("AIM4")... 3,380 93,318 88,246
The Alger American Fund
Growth Portfolio ("AL1").................. 1,184 73,263 67,950
Income and Growth Portfolio ("AL2")....... 315 4,573 4,467
Small Capitalization Portfolio ("AL3").... 264 10,968 8,512
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund ("GS1")........ 6,070 104,027 98,878
CORE Small Cap Equity Fund ("GS2")........ 108 1,285 1,186
CORE US Equity Fund ("GS3")............... 135 1,929 1,865
Growth and Income Fund ("GS4")............ 1,843 19,911 20,218
International Equity Fund ("GS5")......... 1,133 16,724 16,141
MFS/Sun Life Series Trust
Capital Appreciation Series ("CAS")....... 41 2,083 2,035
Massachusetts Investors Trust Series
("CGS")................................... 34 1,052 1,200
Emerging Growth Series ("EGS")............ 2,878 124,718 102,558
Government Securities Series ("GGS")...... 11,326 138,864 138,058
High Yield Series ("HYS")................. 2,222 19,898 18,195
Massachusetts Investors Growth Stock
Series ("MIS")............................ 1,777 30,063 28,487
New Discovery Series ("NWD").............. 575 9,965 10,090
Total Return Series ("TRS")............... 266 4,938 4,613
Utilities Series ("UTS").................. 1,651 31,072 30,613
OCC Accumulation Trust
Equity Portfolio ("OP1").................. 850 27,383 26,279
Mid Cap Portfolio ("OP2")................. 592 6,876 7,667
Small Cap Portfolio ("OP3")............... 380 9,622 9,624
Managed Portfolio ("OP4")................. 26 1,089 975
Sun Capital Advisers Trust
Sun Capital Money Market Fund ("SCA1").... 160,642 160,642 160,642
Sun Capital Investment Grade Bond Fund
("SCA2").................................. 4,837 45,286 45,229
Sun Capital Real Estate Fund ("SCA3")..... 109 1,051 1,133
Sun Capital Select Equity Fund
("SCA 4")................................. 1,003 14,625 13,103
Sun Capital Blue Chip Mid-Cap Fund
("SCA 5")................................. 295 3,757 4,337
Sun Capital Investors Foundation Fund
("SCA 6")................................. 2,288 25,950 25,923
---------- ----------
Net Assets:.................................... $1,119,326 $1,068,480
========== ==========
</TABLE>
See notes to financial statements
1
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENT OF CONDITION -- June 30, 2000 (unaudited) continued
<TABLE>
<CAPTION>
Units Unit Value Value
NET ASSETS APPLICABLE TO CONTRACT OWNERS: ------ ---------- ----------
<S> <C> <C> <C>
AIM Variable Insurance Funds, Inc.
V.I. Capital Appreciation Fund............ 2,279 $14.3007 $ 32,591
V.I. Growth Fund.......................... 2,528 12.5583 31,747
V.I. Growth and Income Fund............... 5,240 11.8741 62,220
V.I. International Equity Fund............ 6,723 12.9327 86,946
The Alger American Fund
Growth Portfolio.......................... 5,512 12.1199 66,805
Income and Growth Portfolio............... 218 14.0237 3,057
Small Capitalization Portfolio............ 546 13.3053 7,265
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund................ 8,015 12.1988 97,774
CORE Small Cap Equity Fund................ -- 11.7803 --
CORE US Equity Fund....................... 73 10.7724 786
Growth and Income Fund.................... 1,922 9.9939 19,208
International Equity Fund................. 1,250 11.9843 14,980
MFS/Sun Life Series Trust
Capital Appreciation Series ("CAS")....... 52 13.3625 695
Massachusetts Investors Trust Series
("CGS")................................... 15 10.3405 155
Emerging Growth Series ("EGS")............ 6,651 15.4191 102,552
Government Securities Series ("GGS")...... 13,220 10.3643 137,016
High Yield Series ("HYS")................. 1,689 10.1641 17,167
Massachusetts Investors Growth Stock
Series ("MIS")............................ 2,231 12.7688 28,487
New Discovery Series ("NWD").............. 510 16.7792 8,557
Total Return Series ("TRS")............... 458 10.0704 4,612
Utilities Series ("UTS").................. 2,328 12.6027 29,339
OCC Accumulation Trust
Equity Portfolio.......................... 2,788 9.0961 25,360
Mid Cap Portfolio......................... 439 13.8206 6,067
Small Cap Portfolio....................... 785 10.8723 8,535
Managed Portfolio......................... -- 9.6819 --
Sun Capital Advisers Trust
Sun Capital Money Market Fund............. 15,365 10.3869 159,595
Sun Capital Investment Grade Bond Fund.... 4,301 10.2736 44,187
Sun Capital Real Estate Fund.............. -- 11.2539 --
Sun Capital Select Equity Fund............ 909 12.9762 11,795
Sun Capital Blue Chip Mid-Cap Fund........ 187 15.0896 2,822
Sun Capital Investors Foundation Fund..... 2,197 11.2801 24,782
----------
Net Assets Applicable to Contract Holders:................ $1,035,106
==========
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENT OF CONDITION -- June 30, 2000 (unaudited) continued
<TABLE>
<CAPTION>
Units Unit Value Value
NET ASSETS APPLICABLE TO SPONSOR: ----- ---------- -------
<S> <C> <C> <C>
AIM Variable Insurance Funds, Inc.
V.I. Capital Appreciation Fund............ -- $ -- $ 1,232
V.I. Growth Fund.......................... -- -- 1,268
V.I. Growth and Income Fund............... -- -- 1,197
V.I. International Equity Fund............ -- -- 1,300
The Alger American Fund
Growth Portfolio.......................... -- -- 1,145
Income and Growth Portfolio............... -- -- 1,410
Small Capitalization Portfolio............ -- -- 1,247
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund................ -- -- 1,105
CORE Small Cap Equity Fund................ -- -- 1,186
CORE US Equity Fund....................... -- -- 1,078
Growth and Income Fund.................... -- -- 1,010
International Equity Fund................. -- -- 1,160
MFS/Sun Life Series Trust
Capital Appreciation Series ("CAS")....... -- -- 1,340
Massachusetts Investors Trust Series
("CGS")................................... -- -- 1,045
Emerging Growth Series ("EGS")............ -- -- 6
Government Securities Series ("GGS")...... -- -- 1,042
High Yield Series ("HYS")................. -- -- 1,028
Massachusetts Investors Growth Stock
Series ("MIS")............................ -- -- --
New Discovery Series ("NWD").............. -- -- 1,533
Total Return Series ("TRS")............... -- -- 1
Utilities Series ("UTS").................. -- -- 1,274
OCC Accumulation Trust
Equity Portfolio.......................... -- -- 919
Mid Cap Portfolio......................... -- -- 1,599
Small Cap Portfolio....................... -- -- 1,089
Managed Portfolio......................... -- -- 975
Sun Capital Advisers Trust
Sun Capital Money Market Fund............. -- -- 1,047
Sun Capital Investment Grade Bond Fund.... -- -- 1,043
Sun Capital Real Estate Fund.............. -- -- 1,133
Sun Capital Select Equity Fund............ -- -- 1,307
Sun Capital Blue Chip Mid-Cap Fund........ -- -- 1,515
Sun Capital Investors Foundation Fund..... -- -- 1,141
-------
Net Assets Applicable to Sponsor:........................ $33,374
=======
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
AIM1 AIM2 AIM3 AIM4 AL1 AL2
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $-- $-- $-- $ -- $ 4,985 $ 541
------- ------- ------- -------- ------- -----
EXPENSES:
Mortality and expense risk charges.... $ (69) $ (69) $ (18) $ (102) $ (89) $ (2)
Cost of insurance..................... (2,355) (2,492) (3,492) (5,504) (4,526) (31)
------- ------- ------- -------- ------- -----
Total expenses........................ $(2,424) $(2,561) $(3,510) $ (5,606) $(4,615) $ (33)
------- ------- ------- -------- ------- -----
Net investment income (loss)...... $(2,424) $(2,561) $(3,510) $ (5,606) $ 370 $ 508
------- ------- ------- -------- ------- -----
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 8,638 $ 2,555 $ 3,506 $ 5,386 $ 7,472 $ 31
Cost of investments sold............ (8,484) (2,324) (3,351) (5,617) (7,551) (24)
------- ------- ------- -------- ------- -----
Net realized gains (losses)....... $ 154 $ 231 $ 154 $ (230) $ (79) $ 6
------- ------- ------- -------- ------- -----
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ (851) $(2,660) $ (626) $ (5,072) $(5,313) $(106)
Beginning of period................. 302 168 172 438 179 340
------- ------- ------- -------- ------- -----
Change in unrealized appreciation
(depreciation).................. $(1,153) $(2,828) $ (798) $ (5,510) $(5,492) $(446)
------- ------- ------- -------- ------- -----
Realized and unrealized gains
(losses).......................... $ (999) $(2,597) $ (644) $ (5,740) $(5,571) $(440)
------- ------- ------- -------- ------- -----
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS.......................... $(3,422) $(5,158) $(4,153) $(11,346) $(5,201) $ 69
======= ======= ======= ======== ======= =====
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENT OF OPERATIONS -- continued
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
AL3 GS1 GS2 GS3 GS4
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 2,476 $-- $-- $ -- $--
------- ------- ----- -------- -------
EXPENSES:
Mortality and expense risk charges.... $ (12) $ (181) $-- $ (40) $ (17)
Cost of insurance..................... (307) (2,222) -- (985) (1,248)
------- ------- ----- -------- -------
Total expenses........................ $ (319) $(2,403) $-- $ (1,025) $(1,264)
------- ------- ----- -------- -------
Net investment income (loss)...... $ 2,157 $(2,403) $-- $ (1,025) $(1,264)
------- ------- ----- -------- -------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 1,651 $ 7,714 $-- $ 25,910 $ 1,264
Cost of investments sold............ (1,223) (7,798) -- (26,309) (1,251)
------- ------- ----- -------- -------
Net realized gains (losses)....... $ 428 $ (84) $-- $ (399) $ 13
------- ------- ----- -------- -------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $(2,456) $(5,149) $ (99) $ (64) $ 307
Beginning of period................. 340 190 141 88 (12)
------- ------- ----- -------- -------
Change in unrealized appreciation
(depreciation).................. $(2,796) $(5,339) $ 42 $ (152) $ 319
------- ------- ----- -------- -------
Realized and unrealized gains
(losses).......................... $(2,368) $(5,423) $ 42 $ (551) $ 332
------- ------- ----- -------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS.......................... $ (211) $(7,826) $ 42 $ (1,577) $ (932)
======= ======= ===== ======== =======
</TABLE>
See notes to financial statements
5
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENT OF OPERATIONS -- continued
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
GS5 CAS CGS EGS GGS HYS
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $-- $230 $ 77 $ 8,344 $ 2,787 $ 1,731
------- ---- ---- -------- -------- -------
EXPENSES:
Mortality and expense risk charges.... $ (29) -$- -$- $ (200) $ (105) $ (32)
Cost of insurance..................... (771) (21) -- (5,074) (8,218) (913)
------- ---- ---- -------- -------- -------
Total expenses........................ $ (799) $(21) -$- $ (5,274) $ (8,323) $ (944)
------- ---- ---- -------- -------- -------
Net investment income (loss)...... $ (799) $209 $ 77 $ 3,070 $ (5,536) $ 786
------- ---- ---- -------- -------- -------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 3,900 $ 21 -$- $ 4,033 $ 17,744 $ 1,015
Cost of investments sold............ (3,765) (19) -- (3,354) (18,646) (1,066)
------- ---- ---- -------- -------- -------
Net realized gains (losses)....... $ 135 $ 2 -$- $ 679 $ (903) $ (50)
------- ---- ---- -------- -------- -------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ (583) $(48) $148 $(22,160) $ (806) $(1,703)
Beginning of period................. 135 33 220 1,911 -- 23
------- ---- ---- -------- -------- -------
Change in unrealized appreciation
(depreciation).................. $ (718) $(81) $(72) $(24,071) $ (806) $(1,726)
------- ---- ---- -------- -------- -------
Realized and unrealized gains
(losses).......................... $ (583) $(79) $(72) $(23,392) $ (1,709) $(1,776)
------- ---- ---- -------- -------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS.......................... $(1,383) $130 $ 5 $(20,322) $ (7,245) $ (990)
======= ==== ==== ======== ======== =======
</TABLE>
See notes to financial statements
6
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENT OF OPERATIONS -- continued
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
MIS NWD TRS UTS OP1
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 1,151 $ 357 $ 466 $ 199 $ 106
------- ------- ----- ------- -------
EXPENSES:
Mortality and expense risk charges.... $ (75) $ (10) $ (17) $ (9) $ (47)
Cost of insurance..................... (2,132) (180) (481) (1,740) (1,313)
------- ------- ----- ------- -------
Total expenses........................ $(2,207) $ (190) $(498) $(1,749) $(1,360)
------- ------- ----- ------- -------
Net investment income (loss)...... $(1,056) $ 167 $ (33) $(1,550) $(1,254)
------- ------- ----- ------- -------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 2,087 $ 3,217 $ 498 $ 1,752 $ 1,355
Cost of investments sold............ (1,788) (2,575) (527) (1,666) (1,478)
------- ------- ----- ------- -------
Net realized gains (losses)....... $ 300 $ 642 $ (28) $ 86 $ (124)
------- ------- ----- ------- -------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $(1,576) $ 125 $(325) $ (459) $(1,104)
Beginning of period................. 773 266 (9) 533 (28)
------- ------- ----- ------- -------
Change in unrealized appreciation
(depreciation).................. $(2,349) $ (141) $(316) $ (992) $(1,076)
------- ------- ----- ------- -------
Realized and unrealized gains
(losses).......................... $(2,049) $ 501 $(344) $ (906) $(1,200)
------- ------- ----- ------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS.......................... $(3,105) $ 668 $(377) $(2,456) $(2,454)
======= ======= ===== ======= =======
</TABLE>
See notes to financial statements
7
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENT OF OPERATIONS -- continued
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
OP2 OP3 OP4 SCA1 SCA2
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 40 $ 6 $ 89 $ 1,358 $ 783
------- ----- ----- ------- -------
EXPENSES:
Mortality and expense risk charges.... $ (14) $ (2) $-- $ (161) $ (82)
Cost of insurance..................... (273) (144) -- (2,055) (2,328)
------- ----- ----- ------- -------
Total expenses........................ $ (287) $(147) $-- $(2,216) $(2,410)
------- ----- ----- ------- -------
Net investment income (loss)...... $ (247) $(140) $ 89 $ (858) $(1,627)
------- ----- ----- ------- -------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 6,503 $ 291 $-- $ 4,966 $ 4,664
Cost of investments sold............ (6,080) (260) -- (4,966) (4,710)
------- ----- ----- ------- -------
Net realized gains (losses)....... $ 422 $ 31 $-- $-- $ (46)
------- ----- ----- ------- -------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 791 $ 2 $(114) $-- $ (57)
Beginning of period................. 178 (34) 5 -- (24)
------- ----- ----- ------- -------
Change in unrealized appreciation
(depreciation).................. $ 613 $ 36 $(119) $-- $ (33)
------- ----- ----- ------- -------
Realized and unrealized gains
(losses).......................... $ 1,035 $ 67 $(119) $-- $ (79)
------- ----- ----- ------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS.......................... $ 788 $ (74) $ (30) $ (858) $(1,705)
======= ===== ===== ======= =======
</TABLE>
See notes to financial statements
8
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENT OF OPERATIONS -- continued
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
SCA3 SCA4 SCA5 SCA6
Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... -$- $-- $-- $--
---- ------- ----- -----
EXPENSES:
Mortality and expense risk charges.... -$- $ (27) $ (6) $ (9)
Cost of insurance..................... -- (1,025) (214) (544)
---- ------- ----- -----
Total expenses........................ -$- $(1,052) $(220) $(553)
---- ------- ----- -----
Net investment income (loss)...... -$- $(1,052) $(220) $(553)
---- ------- ----- -----
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. -$- $ 1,052 $ 378 $ 674
Cost of investments sold............ -- (801) (265) (597)
---- ------- ----- -----
Net realized gains (losses)....... -$- $ 251 $ 113 $ 77
---- ------- ----- -----
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 82 $(1,522) $ 580 $ (27)
Beginning of period................. (79) 264 257 120
---- ------- ----- -----
Change in unrealized appreciation
(depreciation).................. $161 $(1,786) $ 323 $(147)
---- ------- ----- -----
Realized and unrealized gains
(losses).......................... $161 $(1,535) $ 436 $ (70)
---- ------- ----- -----
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS.......................... $161 $(2,587) $ 216 $(623)
==== ======= ===== =====
</TABLE>
See notes to financial statements
9
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
AIM1 AIM2 AIM3
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $(2,424) $ 28 $(2,561) $ 42 $(3,510) $ 10
Net realized gains (losses)........... 154 -- 231 -- 154 --
Net unrealized gains (losses)......... (1,153) 302 (2,828) 168 (798) 172
------- ------ ------- ------ ------- ------
Increase (Decrease) in net assets
from operations:................ $(3,422) $ 330 $(5,158) $ 210 $(4,153) $ 182
------- ------ ------- ------ ------- ------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ -- $1,000 $ 1,460 $1,000 $ 260 $1,000
Net transfers between sub-accounts
and fixed accounts................. 35,916 -- 35,129 375 66,129 --
Withdrawals, surrenders and account
fees............................... -- -- -- -- -- --
------- ------ ------- ------ ------- ------
Net contract owner activity....... $35,916 $1,000 $36,589 $1,375 $66,389 $1,000
------- ------ ------- ------ ------- ------
Increase (Decrease) in net assets... $32,494 $1,330 $31,431 $1,585 $62,236 $1,182
NET ASSETS
Beginning of period................... 1,330 -- 1,585 -- 1,182 --
------- ------ ------- ------ ------- ------
End of period......................... $33,824 $1,330 $33,016 $1,585 $63,418 $1,182
======= ====== ======= ====== ======= ======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
10
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
AIM4 AL1 AL2
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (5,606) $ 48 $ 370 $-- $ 508 $--
Net realized gains (losses)........... (230) -- (79) -- 6 --
Net unrealized gains (losses)......... (5,510) 438 (5,492) 179 (446) 340
-------- ------ ------- ------ ------ ------
Increase (Decrease) in net assets
from operations:................ $(11,346) $ 486 $(5,201) $ 179 $ 69 $ 340
-------- ------ ------- ------ ------ ------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 2,026 $1,000 $ 49 $1,000 $ 251 $1,000
Net transfers between sub-accounts
and fixed accounts................. 95,331 749 71,924 -- 2,807 --
Withdrawals, surrenders and account
fees............................... -- -- -- -- -- --
-------- ------ ------- ------ ------ ------
Net contract owner activity....... $ 97,357 $1,749 $71,972 $1,000 $3,058 $1,000
-------- ------ ------- ------ ------ ------
Increase (Decrease) in net assets... $ 86,011 $2,235 $66,771 $1,179 $3,127 $1,340
NET ASSETS
Beginning of period................... 2,235 -- 1,179 -- 1,340 --
-------- ------ ------- ------ ------ ------
End of period......................... $ 88,246 $2,235 $67,950 $1,179 $4,467 $1,340
======== ====== ======= ====== ====== ======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
11
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
AL3 GS1 GS2
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 2,157 $-- $ (2,403) $ 1 $-- $ 3
Net realized gains (losses)........... 428 -- (84) -- -- --
Net unrealized gains (losses)......... (2,796) 340 (5,339) 190 42 141
------- ------ -------- ------ ------ ------
Increase (Decrease) in net assets
from operations:................ $ (211) $ 340 $ (7,826) $ 191 $ 42 $ 144
------- ------ -------- ------ ------ ------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 260 $1,000 $ 13 $1,000 $-- $1,000
Net transfers between sub-accounts
and fixed accounts................. 7,123 -- 105,500 -- -- --
Withdrawals, surrenders and account
fees............................... -- -- -- -- -- --
------- ------ -------- ------ ------ ------
Net contract owner activity....... $ 7,383 $1,000 $105,513 $1,000 $-- $1,000
------- ------ -------- ------ ------ ------
Increase (Decrease) in net assets... $ 7,172 $1,340 $ 97,687 $1,191 $ 42 $1,144
NET ASSETS
Beginning of period................... 1,340 -- 1,191 -- 1,144 --
------- ------ -------- ------ ------ ------
End of period......................... $ 8,512 $1,340 $ 98,878 $1,191 $1,186 $1,144
======= ====== ======== ====== ====== ======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
12
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
GS3 GS4 GS5
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $(1,025) $ 16 $(1,264) $ 11 $ (799) $ 91
Net realized gains (losses)........... (399) -- 13 -- 135 --
Net unrealized gains (losses)......... (152) 88 319 (12) (718) 135
------- ------ ------- ------ ------- ------
Increase (Decrease) in net assets
from operations:................ $(1,577) $ 104 $ (932) $ (1) $(1,383) $ 226
------- ------ ------- ------ ------- ------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 296 $1,000 $ -- $1,000 $ 355 $1,000
Net transfers between sub-accounts
and fixed accounts................. 1,481 561 20,151 -- 15,942 --
Withdrawals, surrenders and account
fees............................... -- -- -- -- -- --
------- ------ ------- ------ ------- ------
Net contract owner activity....... $ 1,777 $1,561 $20,151 $1,000 $16,297 $1,000
------- ------ ------- ------ ------- ------
Increase (Decrease) in net assets... $ 200 $1,665 $19,219 $ 999 $14,915 $1,226
NET ASSETS
Beginning of period................... 1,665 -- 999 -- 1,226 --
------- ------ ------- ------ ------- ------
End of period......................... $ 1,865 $1,665 $20,218 $ 999 $16,141 $1,226
======= ====== ======= ====== ======= ======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
13
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
CAS CGS EGS
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 209 $-- $ 77 $-- $ 3,070 $ (187)
Net realized gains (losses)........... 2 -- -- -- 679 365
Net unrealized gains (losses)......... (81) 266 (72) 33 (24,071) 1,911
------ ------ ------ ------ -------- -------
Increase (Decrease) in net assets
from operations:................ $ 130 $ 266 $ 5 $ 33 $(20,322) $ 2,089
------ ------ ------ ------ -------- -------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $-- $1,000 $-- $1,000 $ 657 $ 1,000
Net transfers between sub-accounts
and fixed accounts................. 639 -- 162 -- 110,548 9,901
Withdrawals, surrenders and account
fees............................... -- -- -- -- -- (1,314)
------ ------ ------ ------ -------- -------
Net contract owner activity....... $ 639 $1,000 $ 162 $1,000 $111,205 $ 9,587
------ ------ ------ ------ -------- -------
Increase (Decrease) in net assets... $ 769 $1,266 $ 167 $1,033 $ 90,882 $11,676
NET ASSETS
Beginning of period................... 1,266 -- 1,033 -- 11,676 --
------ ------ ------ ------ -------- -------
End of period......................... $2,035 $1,266 $1,200 $1,033 $102,558 $11,676
====== ====== ====== ====== ======== =======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
14
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
GGS HYS MIS
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (5,536) $-- $ 786 $-- $(1,056) $ (184)
Net realized gains (losses)........... (903) -- (50) -- 300 171
Net unrealized gains (losses)......... (806) -- (1,726) 23 (2,349) 773
-------- ------ ------- ------ ------- -------
Increase (Decrease) in net assets
from operations:................ $ (7,245) $-- $ (990) $ 23 $(3,105) $ 760
-------- ------ ------- ------ ------- -------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 1,382 $1,000 $ 494 $1,000 $ 102 $ 1,000
Net transfers between sub-accounts
and fixed accounts................. 142,360 561 17,482 187 20,974 9,901
Withdrawals, surrenders and account
fees............................... -- -- -- -- -- (1,145)
-------- ------ ------- ------ ------- -------
Net contract owner activity....... $143,742 $1,561 $17,975 $1,187 $21,076 $ 9,756
-------- ------ ------- ------ ------- -------
Increase (Decrease) in net assets... $136,497 $1,561 $16,985 $1,210 $17,971 $10,516
NET ASSETS
Beginning of period................... 1,561 -- 1,210 -- 10,516 --
-------- ------ ------- ------ ------- -------
End of period......................... $138,058 $1,561 $18,195 $1,210 $28,487 $10,516
======== ====== ======= ====== ======= =======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
15
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
NWD TRS UTS
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 167 $-- $ (33) $ (87) $(1,550) $--
Net realized gains (losses)........... 642 -- (28) (3) 86 --
Net unrealized gains (losses)......... (141) 533 (316) (9) (992) 220
------- ------ ------ ------ ------- ------
Increase (Decrease) in net assets
from operations:................ $ 668 $ 533 $ (377) $ (99) $(2,456) $ 220
------- ------ ------ ------ ------- ------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 254 $1,000 $-- $1,000 $ 20 $1,000
Net transfers between sub-accounts
and fixed accounts................. 7,635 -- 123 4,951 31,829 --
Withdrawals, surrenders and account
fees............................... -- -- -- (985) -- --
------- ------ ------ ------ ------- ------
Net contract owner activity....... $ 7,889 $1,000 $ 123 $4,966 $31,849 $1,000
------- ------ ------ ------ ------- ------
Increase (Decrease) in net assets... $ 8,557 $1,533 $ (254) $4,867 $29,393 $1,220
NET ASSETS
Beginning of period................... 1,533 -- 4,867 -- 1,220 --
------- ------ ------ ------ ------- ------
End of period......................... $10,090 $1,533 $4,613 $4,867 $30,613 $1,220
======= ====== ====== ====== ======= ======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
16
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
OP1 OP2 OP3
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $(1,254) $-- $ (247) $ 28 $ (140) $--
Net realized gains (losses)........... (124) -- 422 -- 31 --
Net unrealized gains (losses)......... (1,076) (28) 613 178 36 (34)
------- ------ ------ ------ ------ ------
Increase (Decrease) in net assets
from operations:................ $(2,454) $ (28) $ 788 $ 206 $ (74) $ (34)
------- ------ ------ ------ ------ ------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 1,184 $1,000 $-- $1,000 $ 198 $1,000
Net transfers between sub-accounts
and fixed accounts................. 26,576 -- 5,673 -- 8,533 --
Withdrawals, surrenders and account
fees............................... -- -- -- -- -- --
------- ------ ------ ------ ------ ------
Net contract owner activity....... $27,760 $1,000 $5,673 $1,000 $8,732 $1,000
------- ------ ------ ------ ------ ------
Increase (Decrease) in net assets... $25,307 $ 972 $6,461 $1,206 $8,658 $ 966
NET ASSETS
Beginning of period................... 972 -- 1,206 -- 966 --
------- ------ ------ ------ ------ ------
End of period......................... $26,279 $ 972 $7,667 $1,206 $9,624 $ 966
======= ====== ====== ====== ====== ======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
17
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
OP4 SCA1 SCA2
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 89 $-- $ (858) $ 17 $(1,627) $ 22
Net realized gains (losses)........... -- -- -- -- (46) --
Net unrealized gains (losses)......... (119) 5 -- -- (33) (24)
------ ------ -------- ------ ------- ------
Increase (Decrease) in net assets
from operations:................ $ (30) $ 5 $ (858) $ 17 $(1,705) $ (2)
------ ------ -------- ------ ------- ------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $-- $1,000 $ 995 $1,000 $ 1,974 $1,000
Net transfers between sub-accounts
and fixed accounts................. -- -- 159,488 -- 43,213 749
Withdrawals, surrenders and account
fees............................... -- -- -- -- -- --
------ ------ -------- ------ ------- ------
Net contract owner activity....... $-- $1,000 $160,482 $1,000 $45,187 $1,749
------ ------ -------- ------ ------- ------
Increase (Decrease) in net assets... $ (30) $1,005 $159,625 $1,017 $43,482 $1,747
NET ASSETS
Beginning of period................... 1,005 -- 1,017 -- 1,747 --
------ ------ -------- ------ ------- ------
End of period......................... $ 975 $1,005 $160,642 $1,017 $45,229 $1,747
====== ====== ======== ====== ======= ======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
18
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
SCA3 SCA4 SCA5
Sub-Account Sub-Account Sub-Account
------------------------ ------------------------ ------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $-- $ 51 $(1,052) $-- $ (220) $ 38
Net realized gains (losses)........... -- -- 251 -- 113 --
Net unrealized gains (losses)......... 161 (79) (1,786) 264 323 257
------ ------ ------- ------ ------ ------
Increase (Decrease) in net assets
from operations:................ $ 161 $ (28) $(2,587) $ 264 $ 216 $ 295
------ ------ ------- ------ ------ ------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $-- $1,000 $ -- $1,000 $1,480 $1,000
Net transfers between sub-accounts
and fixed accounts................. -- -- 14,427 -- 783 562
Withdrawals, surrenders and account
fees............................... -- -- -- -- -- --
------ ------ ------- ------ ------ ------
Net contract owner activity....... $-- $1,000 $14,427 $1,000 $2,264 $1,562
------ ------ ------- ------ ------ ------
Increase (Decrease) in net assets... $ 161 $ 972 $11,839 $1,264 $2,480 $1,857
NET ASSETS
Beginning of period................... 972 -- 1,264 -- 1,857 --
------ ------ ------- ------ ------ ------
End of period......................... $1,133 $ 972 $13,103 $1,264 $4,337 $1,857
====== ====== ======= ====== ====== ======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
19
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Period from August 25, 1999 to
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
SCA6
Sub-Account
--------------------------------------
Six Months Ended Period Ended
June 30, 2000 December 31, 1999(a)
---------------- --------------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (553) $ 2
Net realized gains (losses)........... 77 --
Net unrealized gains (losses)......... (147) 120
------- ------
Increase (Decrease) in net assets
from operations:................ $ (623) $ 122
------- ------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $-- $1,000
Net transfers between sub-accounts
and fixed accounts................. 25,424 --
Withdrawals, surrenders and account
fees............................... -- --
------- ------
Net contract owner activity....... $25,424 $1,000
------- ------
Increase (Decrease) in net assets... $24,801 $1,122
NET ASSETS
Beginning of period................... 1,122 --
------- ------
End of period......................... $25,923 $1,122
======= ======
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
See notes to financial statements
20
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION
Sun Life (U.S.) Variable Account I (the "Variable Account"), a separate account
of Sun Life Financial (U.S.) (the "Sponsor") was established on August 25, 1999
as a funding vehicle for the variable portion of certain individual variable
universal life insurance contracts. The Variable Account is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940 as a
unit investment trust.
The assets of the Variable Account are divided into Sub-Accounts. Each
Sub-Account is invested in shares of a specific mutual fund or series thereof
selected by contract owners. The funds currently offered are as follows: AIM
Variable Insurance Funds, Inc., the Alger American Fund, Goldman Sachs Variable
Insurance Trust, MFS/Sun Life Series Trust, OCC Accumulated Trust, and Sun
Capital Advisers Trust (collectively the "Funds"). The MFS/Sun Life Series Trust
and Sun Capital Advisers Trust are advised by affiliates of the Sponsor.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL
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.
INVESTMENT VALUATIONS
Investments in the Funds are recorded at their net asset value. Realized gains
and losses on sales of shares of the Funds are determined on the identified cost
basis. Dividend income and capital gain distributions received by the
Sub-Accounts are reinvested in additional Fund shares and are recognized on the
ex-dividend date.
Exchanges between Sub-Accounts requested by contract owners are recorded in the
new Sub-Account upon receipt of the redemption proceeds.
FEDERAL INCOME TAX STATUS
The operations of the Variable Account are part of the operations of the Sponsor
and are not taxed separately. The Variable Account is not taxed as a regulated
investment company. The Sponsor qualifies for the federal income tax treatment
granted to life insurance companies under Subchapter L of the Internal Revenue
Code. Under existing federal income tax law, investment income and capital gains
earned by the Variable Account on contract owner reserves are not subject to
tax.
21
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(3) CONTRACT CHARGES
The Sponsor deducts a sales charge from purchase payments. The current charge is
5.25% of the amount of purchase payments. The maximum charge is guaranteed not
to exceed 7.25% of purchase payments.
A mortality and expense risk charge based on the value of the Variable Account
is deducted from the Variable Account at the end of each valuation period for
the mortality and expense risks assumed by the Sponsor. The maximum deduction is
at an effective annual rate of 0.90%. The rate in effect January 1, 1999 through
May 31, 2000 was equivalent to 0.80% for Policy Years 1 through 10 and .50%
thereafter. The current effective annual rate in effect at June 1, 2000 is
equivalent to 0.60% for Policy Years 1 through 10 and 0.20% thereafter.
Each month, a monthly administration charge ("Account Fee") of $8 is deducted
from each contract's account value to cover administrative expenses relating to
the contract.
Within the first 10 Policy Years or the 10 Policy Years following an increase in
the specified face amount of the policy, a surrender charge may be deducted to
cover certain expenses relating to the sale of the contract. The base surrender
charge will be an amount based on certain factors, including the specified face
amount of the policy, the insured's age, sex and rating class. The charge will
be 100% of the base surrender charge in the first 5 Policy Years, or the first
5 Policy Years after an increase in the specified face amount, scaling down to
zero after 10 Policy Years.
The Sponsor deducts a monthly cost of insurance from the account value to cover
anticipated costs of providing insurance coverage. The charge will be based on
the Sponsor's expectation of future mortality, persistency, interest rates,
expenses and taxes, but will not exceed the Guaranteed Maximum Monthly Cost of
Insurance Rates based on the 1980 Commissioner's Standard Ordinary Smoker and
Nonsmoker Mortality Tables.
22
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(4) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS
During 1999, the Company deposited $1,000 of initial "seed" money in each of the
Sub-Accounts. Unlike normal participant transactions, the initial "seed" money
deposited is not issued with corresponding units. The accumulated balance of
"seed" money remaining in the Sub-Accounts total $33,374 at June 30, 2000.
Transactions in participant units were as follows:
<TABLE>
<CAPTION>
AIM1 AIM2 AIM3 AIM4
Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- -------------------------- ----------
Six Months Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended Ended
June 30 December 31, June 30 December 31, June 30 December 31, June 30
2000 1999(a) 2000 1999(a) 2000 1999(a) 2000
---------- ------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning
of period................. -- -- 32 -- -- -- 53
Units purchased............. 2,351 -- 2,726 -- 101 -- 3,245
Units transferred between
sub-accounts and fixed
account................... 97 -- 9 32 5,434 -- 3,918
Units withdrawn and
surrendered............... (169) -- (239) -- (295) -- (493)
----- -------- ----- -------- ----- -------- -----
Units Outstanding End of
period.................... 2,279 -- 2,528 32 5,240 -- 6,723
===== ======== ===== ======== ===== ======== =====
<CAPTION>
AIM4
Sub-Account
-------------
Period Ended
December 31,
1999(a)
-------------
<S> <C>
Units Outstanding Beginning
of period................. --
Units purchased............. --
Units transferred between
sub-accounts and fixed
account................... 53
Units withdrawn and
surrendered............... --
--------
Units Outstanding End of
period.................... 53
========
</TABLE>
<TABLE>
<CAPTION>
AL1 AL2 AL3 GS1
Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- -------------------------- ----------
Six Months Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended Ended
June 30 December 31, June 30 December 31, June 30 December 31, June 30
2000 1999(a) 2000 1999(a) 2000 1999(a) 2000
---------- ------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning
of period................. -- -- -- -- -- -- --
Units purchased............. 3,184 -- 87 -- 470 -- 8,043
Units transferred between
sub-accounts and fixed
account................... 2,705 -- 133 -- 99 -- 155
Units withdrawn and
surrendered............... (377) -- (2) -- (23) -- (183)
----- -------- --- -------- --- -------- -----
Units Outstanding End of
period.................... 5,512 -- 218 -- 546 -- 8,015
===== ======== === ======== === ======== =====
<CAPTION>
GS1
Sub-Account
-------------
Period Ended
December 31,
1999(a)
-------------
<S> <C>
Units Outstanding Beginning
of period................. --
Units purchased............. --
Units transferred between
sub-accounts and fixed
account................... --
Units withdrawn and
surrendered............... --
--------
Units Outstanding End of
period.................... --
========
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
23
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(4) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
During 1999, the Company deposited $1,000 of initial "seed" money in each of the
Sub-Accounts. Unlike normal participant transactions, the initial "seed" money
deposited is not issued with corresponding units. The accumulated balance of
"seed" money remaining in the Sub-Accounts total $33,374 at June 30, 2000.
Transactions in participant units were as follows:
<TABLE>
<CAPTION>
GS2 GS3 GS4 GS5
Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- -------------------------- ----------
Six Months Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended Ended
June 30 December 31, June 30 December 31, June 30 December 31, June 30
2000 1999(a) 2000 1999(a) 2000 1999(a) 2000
---------- ------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning
of period................. -- -- 52 -- -- -- --
Units purchased............. -- -- 2,385 -- 516 -- 1,313
Units transferred between
sub-accounts and fixed
account................... -- -- (2,198) 52 1,532 -- --
Units withdrawn and
surrendered............... -- -- (166) -- (126) -- (63)
-------- -------- ------ -------- ----- -------- -----
Units Outstanding End of
period.................... -- -- 73 52 1,922 -- 1,250
======== ======== ====== ======== ===== ======== =====
<CAPTION>
GS5
Sub-Account
-------------
Period Ended
December 31,
1999(a)
-------------
<S> <C>
Units Outstanding Beginning
of period................. --
Units purchased............. --
Units transferred between
sub-accounts and fixed
account................... --
Units withdrawn and
surrendered............... --
--------
Units Outstanding End of
period.................... --
========
</TABLE>
<TABLE>
<CAPTION>
CAS CGS EGS GGS
Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- -------------------------- ----------
Six Months Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended Ended
June 30 December 31, June 30 December 31, June 30 December 31, June 30
2000 1999(a) 2000 1999(a) 2000 1999(a) 2000
---------- ------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning
of period................. -- -- -- -- 742 -- 56
Units purchased............. 42 -- -- -- 5,062 -- 4,459
Units transferred between
sub-accounts and fixed
account................... 12 -- 15 -- 1,144 742 9,585
Units withdrawn and
surrendered............... (2) -- -- -- (297) -- (880)
-------- -------- -------- -------- ----- --- ------
Units outstanding End of
period.................... 52 -- 15 -- 6,651 742 13,220
======== ======== ======== ======== ===== === ======
<CAPTION>
GGS
Sub-Account
-------------
Period Ended
December 31,
1999(a)
-------------
<S> <C>
Units Outstanding Beginning
of period................. --
Units purchased............. --
Units transferred between
sub-accounts and fixed
account................... 56
Units withdrawn and
surrendered............... --
--------
Units outstanding End of
period.................... 56
========
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
24
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(4) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
During 1999, the Company deposited $1,000 of initial "seed" money in each of the
Sub-Accounts. Unlike normal participant transactions, the initial "seed" money
deposited is not issued with corresponding units. The accumulated balance of
"seed" money remaining in the Sub-Accounts total $33,374 at June 30, 2000.
Transactions in participant units were as follows:
<TABLE>
<CAPTION>
HYS MIS NWD TRS
Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- -------------------------- ----------
Six Months Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended Ended
June 30 December 31, June 30 December 31, June 30 December 31, June 30
2000 1999(a) 2000 1999(a) 2000 1999(a) 2000
---------- ------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning
of period................ 18 -- 851 -- -- -- 495
Units purchased............ 1,793 -- 1,362 -- 316 -- --
Units transferred between
sub-accounts and fixed
account.................. (7) 18 173 851 205 -- 12
Units withdrawn and
surrendered.............. (115) -- (155) -- (11) -- (49)
----- -------- ----- --- --- -------- ---
Units outstanding End of
period................... 1,689 18 2,231 851 510 -- 458
===== ======== ===== === === ======== ===
<CAPTION>
TRS
Sub-Account
-------------
Period Ended
December 31,
1999(a)
-------------
<S> <C>
Units Outstanding Beginning
of period................ --
Units purchased............ --
Units transferred between
sub-accounts and fixed
account.................. 495
Units withdrawn and
surrendered.............. --
---
Units outstanding End of
period................... 495
===
</TABLE>
<TABLE>
<CAPTION>
UTS OP1 OP2 OP3
Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- -------------------------- ----------
Six Months Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended Ended
June 30 December 31, June 30 December 31, June 30 December 31, June 30
2000 1999(a) 2000 1999(a) 2000 1999(a) 2000
---------- ------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning
of period................. -- -- -- -- -- -- --
Units purchased............. 9 -- 2,902 -- 459 -- 19
Units transferred between
sub-accounts and fixed
account................... 2,456 -- 43 -- -- -- 779
Units withdrawn and
surrendered............... (137) -- (157) -- (20) -- (13)
----- -------- ----- -------- --- -------- ---
Units outstanding End of
period.................... 2,328 -- 2,788 -- 439 -- 785
===== ======== ===== ======== === ======== ===
<CAPTION>
OP3
Sub-Account
-------------
Period Ended
December 31,
1999(a)
-------------
<S> <C>
Units Outstanding Beginning
of period................. --
Units purchased............. --
Units transferred between
sub-accounts and fixed
account................... --
Units withdrawn and
surrendered............... --
--------
Units outstanding End of
period.................... --
========
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
25
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(4) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
During 1999, the Company deposited $1,000 of initial "seed" money in each of the
Sub-Accounts. Unlike normal participant transactions, the initial "seed" money
deposited is not issued with corresponding units. The accumulated balance of
"seed" money remaining in the Sub-Accounts total $33,374 at June 30, 2000.
Transactions in participant units were as follows:
<TABLE>
<CAPTION>
OP4 SCA1 SCA2 SCA3
Sub-Account Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- -------------------------- ----------
Six Months Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended Ended
June 30 December 31, June 30 December 31, June 30 December 31, June 30
2000 1999(a) 2000 1999(a) 2000 1999(a) 2000
---------- ------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of
period...................... -- -- -- -- 75 -- --
Units purchased............... -- -- 2,180 -- 4,635 -- --
Units transferred between sub-
accounts and fixed
account..................... -- -- 13,385 -- (70) 75 --
Units withdrawn and
surrendered................. -- -- (200) -- (339) -- --
-------- -------- ------ -------- ----- -------- -----
Units outstanding End of
period...................... -- -- 15,365 -- 4,301 75 --
======== ======== ====== ======== ===== ======== =====
<CAPTION>
SCA3
Sub-Account
-------------
Period Ended
December 31,
1999(a)
-------------
<S> <C>
Units Outstanding Beginning of
period...................... --
Units purchased............... --
Units transferred between sub-
accounts and fixed
account..................... --
Units withdrawn and
surrendered................. --
--------
Units outstanding End of
period...................... --
========
</TABLE>
<TABLE>
<CAPTION>
SCA4 SCA5 SCA6
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Period Ended Ended Period Ended Ended Period Ended
June 30 December 31, June 30 December 31, June 30 December 31,
2000 1999(a) 2000 1999(a) 2000 1999(a)
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of period...... -- -- 46 -- -- --
Units purchased............................ 987 -- 220 -- 105 --
Units transferred between sub-accounts and
fixed account............................ -- -- -- 46 2,141 --
Units withdrawn and surrendered............ (78) -- (79) -- (49) --
--- -------- --- -------- ----- --------
Units outstanding End of period............ 909 -- 187 46 2,197 --
=== ======== === ======== ===== ========
</TABLE>
(a) for the period from August 25, 1999 (commencement of operations) through
December 31, 1999
26
<PAGE>
FUTURITY VARIABLE UNIVERSAL LIFE
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT I
DIRECTORS AND OFFICERS OF
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, Vice Chairman and Director
JAMES A. McNULTY, III, President and Director
RICHARD B. BAILEY, Director
GREGORY W. GEE, Director
DAVID D. HORN, Director
ANGUS A. MacNAUGHTON, Director
S. CAESAR RABOY, Director
WILLIAM W. STINSON, Director
PETER F. DEMUTH, Vice President, Chief
Counsel and Assistant Secretary
ELLEN B. KING, Counsel and Secretary
ROBERT P. VROLYK, Vice President and Actuary
DAVEY S. SCOON, Vice President, Finance and
Treasurer
RONALD J. FERNANDES, Vice President, Retirement
Products and Services
JAMES M.A. Anderson, Vice President, Investments
ROBIN L. CAMARA, Vice President, Human
Resources and Administrative Services
JAMES R. SMITH, Vice President and
Chief Information Officer
MARK W. DETORA, Vice President,
Individual Insurance
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
Variable Life Service Unit, SC 1275
One Sun Life Executive Park
Wellesley Hills, MA 02481
Call Toll Free 1-800-770-6554
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street, Boston, Massachusetts 02110-2875
AUDITORS
Deloitte & Touche
200 Berkeley Street
Boston, MA 02116-0522
CO2-2/99 6M
FUTURITY-SM-
VARIABLE UNIVERSAL
LIFE INSURANCE
---------------------------
SEMI-ANNUAL REPORT, JUNE 30, 2000
[LOGO]
VARIABLE PRODUCTS ARE ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
AND DISTRIBUTED THROUGH SUN LIFE OF CANADA
(U.S.) DISTRIBUTORS INC.,
MEMBERS OF THE SUN LIFE
FINANCIAL GROUP OF COMPANIES.
