<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT D
STATEMENT OF CONDITION
-- June 30, 2000
<TABLE>
<CAPTION>
ASSETS:
<S> <C> <C> <C>
Investments in mutual funds: Shares Cost Value
--------- ------------ ------------
Massachusetts Investors Trust (MIT)*.................... 1,466,213 $ 25,775,814 $ 30,699,803
Massachusetts Investors Growth Stock Fund (MIG)*........ 890,697 13,900,600 18,751,871
MFS Total Return Fund (MTR)*............................ 1,256,767 19,061,076 17,882,716
MFS Growth Opportunities Fund (MGO)*.................... 305,465 4,989,161 5,944,042
MFS Bond Fund (MFB)*.................................... 120,666 1,580,510 1,454,819
MFS Global Governments Fund (MGG)*...................... 62,433 669,381 590,777
MFS/Sun Life Series Trust:
Capital Appreciation Series (CAS)*.................... 1,391,932 57,042,845 69,387,766
Government Securities Series (GSS)*................... 609,445 7,702,530 7,426,696
High Yield Series (HYS)*.............................. 517,822 4,693,411 4,242,138
Money Market Series (MMS)*............................ 5,350,650 5,350,650 5,350,650
------------ ------------
$140,765,978 $161,731,278
============
LIABILITY:
Payable to sponsor.................................................................. (9,569)
------------
Net Assets.................................................................... $161,721,709
============
</TABLE>
NET ASSETS:
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
-------------------------------------- Variable
Units Unit Value Value Annuities Total
--------- ---------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
MIT-Level 2........................................... 396,258 $56.7273 $ 22,466,379 $ 92,028 $ 22,558,407
MIT-Level 3........................................... 118,659 57.3746 6,697,360 -- 6,697,360
MIT-Level 4........................................... 33,818 42.5911 1,441,425 -- 1,441,425
MIG-Level 2........................................... 136,055 85.6341 11,651,127 -- 11,651,127
MIG-Level 3........................................... 51,971 95.0221 4,936,122 -- 4,936,122
MIG-Level 4........................................... 44,024 49.1839 2,164,622 -- 2,164,622
MTR-Level 2........................................... 349,800 38.5174 13,407,750 -- 13,407,750
MTR-Level 3........................................... 97,828 35.2614 3,433,770 -- 3,433,770
MTR-Level 4........................................... 38,467 27.0274 1,041,196 -- 1,041,196
MGO-Level 2........................................... 77,424 57.2658 4,468,225 -- 4,468,225
MGO-Level 3........................................... 21,558 61.7364 1,335,775 -- 1,335,775
MGO-Level 4........................................... 3,316 41.3332 140,042 -- 140,042
MFB-Level 2........................................... 49,433 21.5167 1,096,285 -- 1,096,285
MFB-Level 3........................................... 14,373 21.8632 329,624 -- 329,624
MFB-Level 4........................................... 849 18.1501 28,910 -- 28,910
MGG-Level 2........................................... 22,304 21.1559 471,614 -- 471,614
MGG-Level 3........................................... 3,816 18.8074 71,943 -- 71,943
MGG-Level 4........................................... 3,580 13.2421 47,220 -- 47,220
CAS-Level 2........................................... 579,748 76.1907 44,153,585 186,035 44,339,620
CAS-Level 3........................................... 96,518 81.3806 7,846,344 1,799 7,848,143
CAS-Level 4........................................... 215,954 79.6782 17,194,818 -- 17,194,818
GSS-Level 2........................................... 211,956 21.6604 4,588,982 2,844 4,591,826
GSS-Level 3........................................... 90,552 21.1650 1,918,948 710 1,919,658
GSS-Level 4........................................... 43,560 20.9620 913,278 -- 913,278
HYS-Level 2........................................... 120,551 25.7216 3,100,817 2,474 3,103,291
HYS-Level 3........................................... 28,574 24.0554 687,784 634 688,418
HYS-Level 4........................................... 19,030 23.6243 450,510 -- 450,510
MMS-Level 2........................................... 148,477 17.3455 2,568,588 2,457 2,571,045
MMS-Level 3........................................... 82,176 16.2139 1,330,424 -- 1,330,424
MMS-Level 4........................................... 90,697 15.9711 1,449,261 -- 1,449,261
------------ -------- ------------
Net Assets $161,432,728 $288,981 $161,721,709
============ ======== ============
</TABLE>
* Investments are made in Class A shares of the Fund
See notes to financial statements
1
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT D
STATEMENT OF OPERATIONS
-- Six Months Ended June 30, 2000
<TABLE>
<CAPTION>
MIT MIG MTR MGO MFB MGG
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............... $ 239,689 $ -- $ 346,054 $ 264,575 $ 53,061 $ --
Mortality and expense risk charges.... (190,875) (114,645) (122,273) (37,004) (8,513) (3,856)
----------- ----------- ----------- ----------- --------- ---------
Net investment income (loss)...... $ 48,814 $ (114,645) $ 223,781 $ 227,571 $ 44,548 $ (3,856)
----------- ----------- ----------- ----------- --------- ---------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 6,045,180 $3,300,023 $7,480,684 $1,745,373 $ 176,419 $ 160,311
Cost of investments sold............ (4,276,523) (1,784,185) (8,059,766) (1,209,438) (191,330) (187,122)
----------- ----------- ----------- ----------- --------- ---------
Net realized gains (losses)....... $ 1,768,657 $1,515,838 $ (579,082) $ 535,935 $ (14,911) $ (26,811)
----------- ----------- ----------- ----------- --------- ---------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 4,923,989 $4,851,271 $(1,178,360) $ 954,881 $(125,691) $ (78,604)
Beginning of period................. 6,852,266 5,631,537 (2,165,377) 1,389,573 (125,345) (107,093)
----------- ----------- ----------- ----------- --------- ---------
Change in unrealized appreciation
(depreciation)................... $(1,928,277) $ (780,266) $ 987,017 $ (434,692) $ (346) $ 28,489
----------- ----------- ----------- ----------- --------- ---------
Realized and unrealized gains
(losses)......................... $ (159,620) $ 735,572 $ 407,935 $ 101,243 $ (15,257) $ 1,678
----------- ----------- ----------- ----------- --------- ---------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ (110,806) $ 620,927 $ 631,716 $ 328,814 $ 29,291 $ (2,178)
=========== =========== =========== =========== ========= =========
<CAPTION>
CAS GSS HYS MMS
Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- -----------
INCOME AND EXPENSES:
<S> <C> <C> <C> <C> <C> <C>
Dividend income and capital gain
distributions received............... $ 8,460,009 $ 461,809 $ 398,873 $ 152,222
Mortality and expense risk charges.... (389,281) (44,353) (25,533) (31,509)
----------- ----------- ----------- -----------
Net investment income (loss)...... $ 8,070,728 $ 417,456 $ 373,340 $ 120,713
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 5,558,753 $1,379,726 $ 485,992 $2,348,717
Cost of investments sold............ (3,771,196) (1,403,933) (493,905) (2,348,717)
----------- ----------- ----------- -----------
Net realized gains (losses)....... $ 1,787,557 $ (24,207) $ (7,913) $ --
----------- ----------- ----------- -----------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $12,344,921 $ (275,834) $ (451,273) $ --
Beginning of period................. 18,399,625 (148,237) (67,357) --
----------- ----------- ----------- -----------
Change in unrealized appreciation
(depreciation)................... $(6,054,704) $ (127,597) $ (383,916) $ --
----------- ----------- ----------- -----------
Realized and unrealized gains
(losses)........................... $(4,267,147) $ (151,804) $ (391,829) $ --
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 3,803,581 $ 265,652 $ (18,489) $ 120,713
=========== =========== =========== ===========
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MIT MIG MTR
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------- ------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 48,814 $ 742,379 $ (114,645) $ 1,292,957 $ 223,781 $ 2,224,587
Net realized gains (losses)........ 1,768,657 4,121,397 1,515,838 2,798,981 (579,082) (189,811)
Net unrealized gains (losses)...... (1,928,277) (2,830,730) (780,266) 1,684,220 987,017 (1,606,233)
----------- ------------ ----------- ----------- ----------- ------------
Increase (Decrease) in net assets
from operations................... $ (110,806) $ 2,033,046 $ 620,927 $ 5,776,158 $ 631,716 $ 428,543
----------- ------------ ----------- ----------- ----------- ------------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments received....... $ 1,614,067 $ 3,466,618 $ 972,101 $ 1,776,775 $ 849,440 $ 2,409,795
Net transfers between
Sub-Accounts and Fixed
Account......................... (1,349,343) (850,973) 899,623 1,475,098 (1,437,012) (1,161,027)
Withdrawals, surrenders,
annuitizations and contract
charges......................... (4,996,011) (13,807,883) (3,056,620) (8,189,434) (6,441,415) (11,448,302)
----------- ------------ ----------- ----------- ----------- ------------
Net accumulation activity...... $(4,731,287) $(11,192,238) $(1,184,896) $(4,937,561) $(7,028,987) $(10,199,534)
----------- ------------ ----------- ----------- ----------- ------------
Annuitization Activity:
Annuity payments and contract
charges......................... $ (14,971) $ (29,851) $ -- $ -- $ -- $ --
Adjustments to annuity reserve... (622) (1,550) -- -- -- --
----------- ------------ ----------- ----------- ----------- ------------
Net annuitization activity..... $ (15,593) $ (31,401) $ -- $ -- $ -- $ --
----------- ------------ ----------- ----------- ----------- ------------
Increase (Decrease) in net assets
from participant transactions..... $(4,746,880) $(11,223,639) $(1,184,896) $(4,937,561) $(7,028,987) $(10,199,534)
----------- ------------ ----------- ----------- ----------- ------------
Increase (Decrease) in net
assets.......................... $(4,857,686) $ (9,190,593) $ (563,969) $ 838,597 $(6,397,271) $ (9,770,991)
NET ASSETS:
Beginning of period................ 35,554,878 44,745,471 19,315,840 18,477,243 24,279,987 34,050,978
----------- ------------ ----------- ----------- ----------- ------------
End of period...................... $30,697,192 $ 35,554,878 $18,751,871 $19,315,840 $17,882,716 $ 24,279,987
=========== ============ =========== =========== =========== ============
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT D
STATEMENTS OF CHANGES IN NET ASSETS
-- continued
<TABLE>
<CAPTION>
MGO MFB MGG
Sub-Account Sub-Account Sub-Account
--------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)......... $ 227,571 $ 523,974 $ 44,548 $ 123,415 $ (3,856) $ 41,424
Net realized gains (losses).......... 535,935 229,838 (14,911) (76,034) (26,811) (87,509)
Net unrealized gains (losses)........ (434,692) 782,805 (346) (120,796) 28,489 (24,957)
----------- ----------- ---------- ----------- --------- -----------
Increase (Decrease) in net assets
from operations................. $ 328,814 $ 1,536,617 $ 29,291 $ (73,415) $ (2,178) $ (71,042)
----------- ----------- ---------- ----------- --------- -----------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments received......... $ 337,563 $ 663,514 $ 86,743 $ 245,793 $ 17,199 $ 122,908
Net transfers between Sub-Accounts
and Fixed Account................. 701,558 82,341 (25,493) (220,519) (29,606) (85,033)
Withdrawals, surrenders,
annuitizations and contract
charges........................... (1,773,114) (1,264,444) (152,646) (1,023,830) (131,331) (986,749)
----------- ----------- ---------- ----------- --------- -----------
Net accumulation activity........ $ (733,993) $ (518,589) $ (91,396) $ (998,556) $(143,738) $ (948,874)
----------- ----------- ---------- ----------- --------- -----------
Increase (Decrease) in net assets
from participant transactions..... $ (733,993) $ (518,589) $ (91,396) $ (998,556) $(143,738) $ (948,874)
----------- ----------- ---------- ----------- --------- -----------
Increase (Decrease) in net
assets............................ $ (405,179) $ 1,018,028 $ (62,105) $(1,071,971) $(145,916) $(1,019,916)
NET ASSETS:
Beginning of period.................. 6,349,221 5,331,193 1,516,924 2,588,895 736,693 1,756,609
----------- ----------- ---------- ----------- --------- -----------
End of period........................ $ 5,944,042 $ 6,349,221 $1,454,819 $ 1,516,924 $ 590,777 $ 736,693
=========== =========== ========== =========== ========= ===========
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT D
STATEMENTS OF CHANGES IN NET ASSETS
-- continued
<TABLE>
<CAPTION>
CAS GSS HYS MMS
Sub-Account Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- -------------------------- ----------
Six Months Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended Ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30,
2000 1999 2000 1999 2000 1999 2000
----------- ------------- ----------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................... $ 8,070,728 $ 5,796,506 $ 417,456 $ 366,933 $ 373,340 $328,265 $ 120,713
Net realized gains
(losses)................. 1,787,557 2,618,015 (24,207) 80,890 (7,913) 45,009 --
Net unrealized gains
(losses)................. (6,054,704) 7,990,959 (127,597) (745,800) (383,916) (109,308 ) --
----------- ----------- ----------- ----------- ---------- ---------- ----------
Increase (Decrease) in
net assets from
operations........... $ 3,803,581 $16,405,480 $ 265,652 $ (297,977) $ (18,489) $263,966 $ 120,713
----------- ----------- ----------- ----------- ---------- ---------- ----------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments
received............... $ 2,116,850 $ 3,444,322 $ 414,130 $ 557,289 $ 305,639 $368,095 $ 323,469
Net transfers between
Sub-Accounts and Fixed
Account................ 218,527 (539,704) (544,096) 42,123 (171,566) (147,327 ) 407,612
Withdrawals, surrenders,
annuitizations and
contract charges....... (4,459,256) (9,183,402) (904,902) (2,407,705) (283,379) (970,623 ) (875,305)
----------- ----------- ----------- ----------- ---------- ---------- ----------
Net accumulation
activity............. $(2,123,879) $(6,278,784) $(1,034,868) $(1,808,293) $ (149,306) $(749,855 ) $ (144,224)
----------- ----------- ----------- ----------- ---------- ---------- ----------
Annuitization Activity:
Annuity payments and
contract charges....... $ (9,954) $ (15,883) $ (1,016) $ (2,092) $ (929) $ (1,882 ) $ (110)
Adjustments to annuity
reserve................ (1,318) (2,645) (55) 67 19 28 1
----------- ----------- ----------- ----------- ---------- ---------- ----------
Net annuitization
activity............. $ (11,272) $ (18,528) $ (1,071) $ (2,025) $ (910) $ (1,854 ) $ (109)
----------- ----------- ----------- ----------- ---------- ---------- ----------
Increase (Decrease) in net
assets from participant
transactions............. $(2,135,151) $(6,297,312) $(1,035,939) $(1,810,318) $ (150,216) $(751,709 ) $ (144,333)
----------- ----------- ----------- ----------- ---------- ---------- ----------
Increase (Decrease) in
net assets............. $ 1,668,430 $10,108,168 $ (770,287) $(2,108,295) $ (168,705) $(487,743 ) $ (23,620)
NET ASSETS
Beginning of period....... 67,714,151 57,605,983 8,195,049 10,303,344 4,410,924 4,898,667 5,374,350
----------- ----------- ----------- ----------- ---------- ---------- ----------
End of period............. $69,382,581 $67,714,151 $ 7,424,762 $ 8,195,049 $4,242,219 4$,410,924 $5,350,730
=========== =========== =========== =========== ========== ========== ==========
<CAPTION>
MMS
Sub-Account
-------------
Year Ended
December 31,
1999
-------------
<S> <C>
OPERATIONS:
Net investment income
(loss)................... $ 202,793
Net realized gains
(losses)................. --
Net unrealized gains
(losses)................. --
-----------
Increase (Decrease) in
net assets from
operations........... $ 202,793
-----------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments
received............... $ 484,411
Net transfers between
Sub-Accounts and Fixed
Account................ 1,766,578
Withdrawals, surrenders,
annuitizations and
contract charges....... (3,577,347)
-----------
Net accumulation
activity............. $(1,326,358)
-----------
Annuitization Activity:
Annuity payments and
contract charges....... $ (220)
Adjustments to annuity
reserve................ (2)
-----------
Net annuitization
activity............. $ (222)
-----------
Increase (Decrease) in net
assets from participant
transactions............. $(1,326,580)
-----------
Increase (Decrease) in
net assets............. $(1,123,787)
NET ASSETS
Beginning of period....... 6,498,137
-----------
End of period............. $ 5,374,350
===========
</TABLE>
See notes to financial statements
5
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT D
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life of Canada (U.S.) Variable Account D (the "Variable Account"), a
separate account of Sun Life Assurance Company of Canada (U.S.) (the "Sponsor"),
was established on August 20, 1985 as a funding vehicle for the variable portion
of group combination fixed/variable annuities. 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 from among available mutual funds (the "Funds")
advised by Massachusetts Financial Services Company ("MFS"), an affiliate 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 the Sponsor's
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
INVESTMENT VALUATIONS
Investments in 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 taxable and,
therefore, no provision has been made for federal income taxes.
6
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT D
NOTES TO FINANCIAL STATEMENTS -- continued
(3) CONTRACT CHARGES
A mortality and expense risk charge is deducted from the Variable Account at the
end of each valuation period for the mortality and expense risks assumed by the
Sponsor. These deductions are transferred periodically to the Sponsor. The rate
of this deduction varies, based on total purchase payments credited to all
participants' accounts under a contract as follows:
<TABLE>
<CAPTION>
Mortality
and Expense
Level Purchase Payments Risk Charge
----- ----------------- -----------
<S> <C> <C>
1 up to $250,000 1.30 %
2 $250,000 to $1,499,999 1.25 %
3 $1,500,000 to $4,999,999 1.10 %
4 $5,000,000 and over 0.95 %
</TABLE>
Since 1987, the Sponsor has reduced the Level 1 mortality and expense risk
charge to 1.25% and, therefore, has been accounting for all Level 1 units as
Level 2 units.
Each year on the account anniversary, an account administration fee is deducted
from the participant's account to cover administrative expenses relating to the
contract and the participant's account. The amount of the fee varies from $12 to
$25 and is based on total purchase payments credited to all participants'
accounts under a contract. After the annuity commencement date, the account fee
is deducted pro rata from each annuity payment made during the year.
The Sponsor does not deduct a sales charge from purchase payments. However, a
withdrawal charge (contingent deferred sales charge) may be deducted to cover
certain expenses relating to the sale of the contract. In no event shall the
aggregate withdrawal charges exceed 6% of the purchase payments made under the
contract.
A deduction, when applicable, is made for premium taxes or similar state or
local taxes. It is currently the policy of the Sponsor to deduct the taxes from
the amount applied to provide an annuity at the time annuity payments commence;
however, the Sponsor reserves the right to deduct such taxes when incurred.
(4) ANNUITY RESERVES
Annuity reserves are calculated using the 1983 Individual Annuitant Mortality
Table and an assumed interest rate of 4%. Required adjustments to the reserve
are accomplished by transfers to or from the Sponsor.
7
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT D
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS
<TABLE>
<CAPTION>
Units Transferred Units Withdrawn,
Units Outstanding Between Sub-Accounts Surrendered and
Beginning of Period Units Purchased and Fixed Account Annuitized
-------------------------- -------------------------- -------------------------- --------------------------
Six Months Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
Sub-Accounts 2000 1999 2000 1999 2000 1999 2000 1999
------------ ---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MIT-Level 2 465,628 567,275 20,197 44,337 (11,775 ) (12,590 ) (77,792) (133,394)
MIT-Level 3 130,779 196,235 3,333 13,588 (5,058 ) (6,224 ) (10,395) (72,820)
MIT-Level 4 39,282 90,975 3,225 13,148 (5,878 ) (785 ) (2,811) (64,056)
MIG-Level 2 149,986 165,654 5,075 13,201 10,620 17,140 (29,626) (46,009)
MIG-Level 3 52,563 89,584 2,301 8,105 1,196 2,290 (4,089) (47,416)
MIG-Level 4 41,629 69,102 2,881 10,657 1,587 2,394 (2,073) (40,524)
MTR-Level 2 520,185 628,337 20,599 43,886 (31,217 ) (18,021 ) (159,767) (134,017)
MTR-Level 3 109,723 206,850 2,524 14,979 (4,026 ) (12,441 ) (10,393) (99,665)
MTR-Level 4 49,629 157,727 1,874 16,875 (7,690 ) (8,784 ) (5,346) (116,189)
MGO-Level 2 91,428 95,086 3,380 8,656 12,521 1,152 (29,905) (13,466)
MGO-Level 3 21,491 23,225 1,089 5,359 616 2,088 (1,638) (9,181)
MGO-Level 4 2,443 11,370 180 2,041 706 47 (13) (11,015)
MFB-Level 2 51,937 76,030 2,955 6,257 (1,028 ) (2,595 ) (4,431) (27,755)
MFB-Level 3 16,174 23,254 249 3,408 667 (5,387 ) (2,717) (5,101)
MFB-Level 4 803 19,478 66 2,141 (18 ) (2,840 ) (2) (17,976)
MGG-Level 2 27,807 35,699 569 2,182 (1,308 ) (1,759 ) (4,764) (8,315)
MGG-Level 3 4,822 16,947 137 782 (128 ) (2,786 ) (1,015) (10,121)
MGG-Level 4 4,339 45,525 215 5,753 -- (740 ) (974) (46,199)
CAS-Level 2 582,574 628,268 13,675 34,983 17,579 (9,439 ) (34,080) (71,238)
CAS-Level 3 102,101 111,749 1,834 4,961 (385 ) 1,153 (7,032) (15,762)
CAS-Level 4 234,710 284,604 7,301 23,210 (7,836 ) (4,525 ) (18,221) (68,579)
GSS-Level 2 244,048 317,889 8,989 19,457 (12,345 ) (11,993 ) (28,736) (81,305)
GSS-Level 3 100,588 107,677 2,494 5,826 (2,161 ) 15,145 (10,369) (28,060)
GSS-Level 4 51,168 56,137 1,710 4,795 (5,126 ) (4,404 ) (4,192) (5,360)
HYS-Level 2 125,543 147,334 5,476 10,902 (1,223 ) (9,140 ) (9,245) (23,553)
HYS-Level 3 29,465 32,554 532 2,861 90 423 (1,513) (6,373)
HYS-Level 4 18,908 24,009 1,378 2,604 (946 ) 1,468 (310) (9,173)
MMS-Level 2 211,856 254,576 6,813 19,791 (30,512 ) 67,567 (39,680) (130,078)
MMS-Level 3 74,923 113,042 1,236 8,292 14,626 16,457 (8,609) (62,868)
MMS-Level 4 38,024 39,132 1,643 2,910 54,528 23,818 (3,498) (27,836)
<CAPTION>
Units Outstanding
End of Period
--------------------------
Six Months
Ended Year Ended
June 30, December 31,
Sub-Accounts 2000 1999
------------ ---------- -------------
<S> <C> <C>
MIT-Level 2 396,258 465,628
MIT-Level 3 118,659 130,779
MIT-Level 4 33,818 39,282
MIG-Level 2 136,055 149,986
MIG-Level 3 51,971 52,563
MIG-Level 4 44,024 41,629
MTR-Level 2 349,800 520,185
MTR-Level 3 97,828 109,723
MTR-Level 4 38,467 49,629
MGO-Level 2 77,424 91,428
MGO-Level 3 21,558 21,491
MGO-Level 4 3,316 2,443
MFB-Level 2 49,433 51,937
MFB-Level 3 14,373 16,174
MFB-Level 4 849 803
MGG-Level 2 22,304 27,807
MGG-Level 3 3,816 4,822
MGG-Level 4 3,580 4,339
CAS-Level 2 579,748 582,574
CAS-Level 3 96,518 102,101
CAS-Level 4 215,954 234,710
GSS-Level 2 211,956 244,048
GSS-Level 3 90,552 100,588
GSS-Level 4 43,560 51,168
HYS-Level 2 120,551 125,543
HYS-Level 3 28,574 29,465
HYS-Level 4 19,030 18,908
MMS-Level 2 148,477 211,856
MMS-Level 3 82,176 74,923
MMS-Level 4 90,697 38,024
</TABLE>
8
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Participants in Sun Life of Canada (U.S.) Variable Account D
and the Board of Directors of Sun Life Assurance Company of Canada (U.S.):
We have audited the accompanying statement of condition of Massachusetts
Investors Trust Sub-Account, Massachusetts Investors Growth Stock Sub-Account,
MFS Total Return Sub-Account, MFS Growth Opportunities Sub-Account, MFS Bond
Sub-Account, MFS Global Governments Sub-Account, MFS Capital Appreciation
Sub-Account, MFS Government Securities Sub-Account, MFS High Yield Sub-Account,
and MFS Money Market Sub-Account of Sun Life of Canada (U.S.) Variable Account D
(the "Sub-Accounts") as of June 30, 2000, the related statement of operations
for the six months then ended and the statements of changes in net assets for
the six months ended June 30, 2000 and the year ended December 31, 1999. These
financial statements are the responsibility of management. Our responsibility is
to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities held at June 30,
2000 by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Sub-Accounts as of June 30, 2000 and the
results of their operations and the changes in their net assets for the
respective stated periods in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 11, 2000
<PAGE>
COMPASS-G
DIRECTORS AND OFFICERS OF
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, Vice Chairman and Director
JAMES A. McNULTY, III, President and Director
S. CAESAR RABOY, Director
RICHARD B. BAILEY, Director
DAVID D. HORN, Director
ANGUS A. MacNAUGHTON, Director
WILLIAM W. STINSON, Director
GREGORY W. GEE, Director
PETER F. DEMUTH, Vice President and Chief
Counsel and Assistant Secretary
DAVEY S. SCOON, Vice President, Finance
and Treasurer
RONALD J. FERNANDES, Vice President,
Retirement Products and Services
JAMES M.A. ANDERSON, Vice President, Investments
ROBERT P. VROLYK, Vice President and Actuary
ELLEN B. KING, Counsel and Secretary
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
ANNUITY SERVICE MAILING ADDRESS:
Sun Life Retirement Products and Services
P.O. Box 1024, Boston, Massachusetts 02103-9986
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 LLP
200 Berkeley Street, Boston, Massachusetts 02116
ACCOUNT INFORMATION
For account information, call toll free 1-800-752-7218 anytime from a
touch-tone telephone.
To speak with a customer service representative,
please call toll free 1-800-752-7215 from 8 a.m. to 6 p.m.
Eastern Standard time on any business day.
This report is prepared for the general information of
contract owners and participants. It is authorized for
distribution to prospective purchasers only if
preceded or accompanied by an effective prospectus.
COG3 8/00 23M
[LOGO]
PROFESSIONALLY MANAGED COMBINATION
FIXED/VARIABLE GROUP ANNUITY
FOR QUALIFIED AND NON-QUALIFIED
RETIREMENT PLANS
---------------------------------------------
SEMI-ANNUAL REPORT, JUNE 30, 2000
[LOGO]
ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
A MEMBER OF THE SUN LIFE
FINANCIAL GROUP OF COMPANIES
