<PAGE> PAGE 1
000 B000000 12/31/99
000 C000000 0000706111
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 CAPITAL APPRECIATION VARIABLE ACCOUNT
001 B000000 811-3561
001 C000000 6179545000
002 A000000 ONE SUN LIFE EXECUTIVE PARK
002 B000000 WELLESLEY HILLS
002 C000000 MA
002 D010000 02181
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 MASSACHUSETTS FINANCIAL SERVICES COMPANY
008 B000001 A
008 C000001 801-17352
008 D010001 BOSTON
008 D020001 MA
008 D030001 02116
010 A000001 MASSACHUSETTS FINANCIAL SERVICES COMPANY
010 B000001 801-17352
010 C010001 BOSTON
010 C020001 MA
010 C030001 02116
011 A000001 CLARENDON INSURANCE AGENCY
011 B000001 8-21590
011 C010001 BOSTON
011 C020001 MA
011 C030001 02116
013 A000001 DELOITTE & TOUCHE LLP
013 B010001 BOSTON
013 B020001 MA
<PAGE> PAGE 2
013 B030001 02116
014 A000001 SUN INVESTMENT SERVICES COMPANY
014 B000001 8-16198
015 A000001 STATE STREET BANK AND TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02110
015 E010001 X
015 A000002 CHASE MANHATTAN BANK, N.A.
015 B000002 S
015 C010002 NEW YORK
015 C020002 NY
015 C030002 10081
015 E040002 X
015 A000003 THE BANK OF NEW YORK
015 B000003 S
015 C010003 NEW YORK
015 C020003 NY
015 C030003 10286
015 E010003 X
018 000000 Y
019 A000000 Y
019 B000000 7
019 C000000 COMPASSFDS
020 A000001 DONALDSON LUFKIN & JENRETTE
020 B000001 13-2741729
020 C000001 224
020 A000002 SALOMON SMITH BARNEY INC.
020 B000002 13-1912900
020 C000002 112
020 A000003 MERRILL LYNCH PIERCE
020 B000003 13-5674085
020 C000003 104
020 A000004 MORGAN STANLEY DEAN WITTER & CO.
020 B000004 13-2655998
020 C000004 56
020 A000005 GOLDMAN SACHS GROUP INC.
020 B000005 13-5108880
020 C000005 56
020 A000006 PAINE WEBBER INC.
020 B000006 13-2638166
020 C000006 48
020 A000007 CS FIRST BOSTON CORP.
020 B000007 13-5659485
020 C000007 47
020 A000008 BEAR STERNS SECURITIES CO.
020 B000008 13-3299429
020 C000008 43
020 A000009 SG COWEN SECURITIES CORP.
020 B000009 00-0000000
<PAGE> PAGE 3
020 C000009 42
020 A000010 MORGAN, JP, SECURITIES INC.
020 B000010 13-3224016
020 C000010 38
021 000000 1359
022 A000001 ASSOCIATES CORP. N.A.
022 B000001 00-0000000
022 C000001 825779
022 D000001 0
022 A000002 CIT GROUP HOLDINGS INC.
022 B000002 00-0000000
022 C000002 495493
022 D000002 0
022 A000003 CHASE SECURITIES INC.
022 B000003 13-3112953
022 C000003 356635
022 D000003 3093
022 A000004 GOLDMAN SAHCS & CO.
022 B000004 13-1912900
022 C000004 226073
022 D000004 32375
022 A000005 PRUDENTIAL SECURITIES INC.
022 B000005 22-2347336
022 C000005 249814
022 D000005 4384
022 A000006 GENERAL ELECTRIC CAP. CORP.
022 B000006 00-0000000
022 C000006 240113
022 D000006 0
022 A000007 SALOMON SMITH BARNEY INC.
022 B000007 13-3082694
022 C000007 198911
022 D000007 31071
022 A000008 FORD MOTOR CREDIT CO.
022 B000008 38-1612444
022 C000008 199019
022 D000008 0
022 A000009 CARROLL MC ENTEE
022 B000009 13-2650272
022 C000009 143099
022 D000009 26959
022 A000010 BANK OF AMERICA
022 B000010 94-1687665
022 C000010 167324
022 D000010 0
023 C000000 3604026
023 D000000 207829
024 000000 Y
025 A000001 GENERAL ELECTRIC
025 B000001 00-0000000
025 C000001 E
<PAGE> PAGE 4
025 D000001 16868
025 A000002 GOLDMAN SACHS GROUP INC.
025 B000002 13-5108880
025 C000002 E
025 D000002 4549
025 A000003 MORGAN STANLEY DEAN WITTER & CO.
025 B000003 13-2655998
025 C000003 E
025 D000003 8908
025 A000004 DELETE
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 749
028 A020000 0
028 A030000 0
028 A040000 824
028 B010000 617
028 B020000 0
028 B030000 0
028 B040000 758
028 C010000 535
028 C020000 0
028 C030000 0
028 C040000 750
028 D010000 852
028 D020000 0
028 D030000 0
028 D040000 605
028 E010000 893
028 E020000 0
028 E030000 0
028 E040000 1082
028 F010000 574
028 F020000 0
028 F030000 0
028 F040000 654
028 G010000 4220
028 G020000 0
<PAGE> PAGE 5
028 G030000 0
028 G040000 4673
028 H000000 4220
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 Y
035 000000 393
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 Y
040 000000 N
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 300000
048 A020000 0.750
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
<PAGE> PAGE 6
048 J010000 0
048 J020000 0.000
048 K010000 300000
048 K020000 0.675
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 N
053 C000000 Y
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 N
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 Y
058 B000000 Y
058 C000000 N
058 D000000 N
058 E000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 300
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
<PAGE> PAGE 7
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 Y
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 Y
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
<PAGE> PAGE 8
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 597897
071 B000000 684598
071 C000000 703098
071 D000000 85
072 A000000 12
072 B000000 1378
072 C000000 2542
072 D000000 0
072 E000000 -26
072 F000000 5122
072 G000000 92
072 H000000 0
072 I000000 0
072 J000000 219
072 K000000 0
072 L000000 35
072 M000000 19
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 29
072 S000000 2
072 T000000 150
072 U000000 0
072 V000000 0
072 W000000 9186
072 X000000 14854
072 Y000000 29
072 Z000000 -10931
072AA000000 130239
072BB000000 0
072CC010000 87239
072CC020000 0
072DD010000 0
072DD020000 0
072EE000000 0
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 26
074 B000000 0
074 C000000 8699
074 D000000 0
074 E000000 0
074 F000000 843242
<PAGE> PAGE 9
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 1254
074 K000000 0
074 L000000 2553
074 M000000 8
074 N000000 855782
074 O000000 802
074 P000000 74
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 1715
074 S000000 0
074 T000000 853191
074 U010000 6403
074 U020000 1824
074 V010000 92.24
074 V020000 61.12
074 W000000 0.0000
074 X000000 35387
074 Y000000 0
075 A000000 0
075 B000000 725531
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 NATIONAL UNION/CHUBB
080 B000000 GULF
080 C000000 90000
081 A000000 Y
081 B000000 132
082 A000000 Y
082 B000000 100
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
<PAGE> PAGE 10
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE JAMES O. YOST
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000706111
<NAME> CAPITAL APPRECIATION VARIABLE ACCOUNT
<SERIES>
<NUMBER> 012
<NAME> CAPITAL APPRECIATION VARIABLE ACCOUNT 3
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 543865
<INVESTMENTS-AT-VALUE> 851941
<RECEIVABLES> 3807
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 26
<TOTAL-ASSETS> 855782
<PAYABLE-FOR-SECURITIES> 802
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1789
<TOTAL-LIABILITIES> 2591
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 545115
<SHARES-COMMON-STOCK> 1824
<SHARES-COMMON-PRIOR> 2452
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 308076
<NET-ASSETS> 853191
<DIVIDEND-INCOME> 2542
<INTEREST-INCOME> 1378
<OTHER-INCOME> (26)
<EXPENSES-NET> (14825)
<NET-INVESTMENT-INCOME> (10931)
<REALIZED-GAINS-CURRENT> 130239
<APPREC-INCREASE-CURRENT> 87329
<NET-CHANGE-FROM-OPS> 206637
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 253
<NUMBER-OF-SHARES-REDEEMED> (881)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 109616
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5122
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 14854
<AVERAGE-NET-ASSETS> 725531284
<PER-SHARE-NAV-BEGIN> 46.71
<PER-SHARE-NII> (0.78)
<PER-SHARE-GAIN-APPREC> 15.19
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 61.12
<EXPENSE-RATIO> 0.76
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000706111
<NAME> CAPITAL APPRECIATION VARIABLE ACCOUNT
<SERIES>
<NUMBER> 013
<NAME> CAPITAL APPRECIATION VARIABLE ACCOUNT 3b
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 543865
<INVESTMENTS-AT-VALUE> 851941
<RECEIVABLES> 3807
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 26
<TOTAL-ASSETS> 855782
<PAYABLE-FOR-SECURITIES> 802
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1789
<TOTAL-LIABILITIES> 2591
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 545115
<SHARES-COMMON-STOCK> 5632
<SHARES-COMMON-PRIOR> 5055
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 308076
<NET-ASSETS> 853191
<DIVIDEND-INCOME> 2542
<INTEREST-INCOME> 1378
<OTHER-INCOME> (26)
<EXPENSES-NET> (14825)
<NET-INVESTMENT-INCOME> (10931)
<REALIZED-GAINS-CURRENT> 130239
<APPREC-INCREASE-CURRENT> 87329
<NET-CHANGE-FROM-OPS> 206637
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 134
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 443
<NET-CHANGE-IN-ASSETS> 109616
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5122
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 14854
<AVERAGE-NET-ASSETS> 725531284
<PER-SHARE-NAV-BEGIN> 19.27
<PER-SHARE-NII> (0.30)
<PER-SHARE-GAIN-APPREC> 6.28
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.25
<EXPENSE-RATIO> 0.76
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000706111
<NAME> CAPITAL APPRECIATION VARIABLE ACCOUNT
<SERIES>
<NUMBER> 011
<NAME> CAPITAL APPRECIATION VARIABLE ACCOUNT 2
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 543865
<INVESTMENTS-AT-VALUE> 851941
<RECEIVABLES> 3807
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 26
<TOTAL-ASSETS> 855782
<PAYABLE-FOR-SECURITIES> 802
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1789
<TOTAL-LIABILITIES> 2591
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 545115
<SHARES-COMMON-STOCK> 6403
<SHARES-COMMON-PRIOR> 7447
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 308076
<NET-ASSETS> 853191
<DIVIDEND-INCOME> 2542
<INTEREST-INCOME> 1378
<OTHER-INCOME> (26)
<EXPENSES-NET> (14825)
<NET-INVESTMENT-INCOME> (10931)
<REALIZED-GAINS-CURRENT> 130239
<APPREC-INCREASE-CURRENT> 87329
<NET-CHANGE-FROM-OPS> 206637
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 78
<NUMBER-OF-SHARES-REDEEMED> (1122)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 109616
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5122
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 14854
<AVERAGE-NET-ASSETS> 725531284
<PER-SHARE-NAV-BEGIN> 70.43
<PER-SHARE-NII> (1.12)
<PER-SHARE-GAIN-APPREC> 22.93
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 92.24
<EXPENSE-RATIO> 0.76
</TABLE>
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of Compass 2/3 Variable Accounts:
In planning and performing our audits of the financial statements of Compass 2/3
Variable Accounts (comprised of Capital Appreciation Variable Account, Global
Governments Variable Account, Government Securities Variable Account, High Yield
Variable Account, Managed Sectors Variable Account, Money Market Variable
Account, and Total Return Variable Account) (the "Funds") for the year ended
December 31, 1999 (on which we have issued our reports dated February 3, 2000),
we considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply with
the requirements of Form N-SAR, and not to provide assurance on the Funds'
internal control.
The management of the Funds is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in any internal control, misstatements due to
error or fraud may occur and not be detected. Also, projection of any evaluation
of internal control to future periods is subject to the risk that the internal
control may become inadequate because of changes in conditions or that the
degree of compliance with policies or procedures deteriorates.
Our consideration of the Funds' internal control would not necessarily disclose
all matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving the
Funds' internal control and its operation, including controls for safeguarding
securities that we consider to be material weaknesses as defined above as of
December 31, 1999.
This report is intended solely for the information and use of management, the
Board of Trustees, and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these specified
parties.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 3, 2000