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Previous: DEFINED ASSET FUNDS MUNICIPAL INVESTMENT TRUST FD PUT SER 10, 485BPOS, 1998-03-11 |
Next: DEFINED ASSET FUNDS MUNICIPAL INVT TR FD MULTISTATE SER W, 24F-2NT, 1998-03-11 |
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
Annual Report for the
Year Ended December 31, 1997
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Contract Owners participating in Sun Life (N.Y.) Variable Account A
and the Board of Directors of Sun Life Insurance and Annuity Company of New
York:
We have audited the accompanying statement of condition of Sun Life (N.Y.)
Variable Account A (the "Variable Account") as of December 31, 1997, the
related statement of operations for the year then ended, and the statements
of changes in net assets for the years ended December 31, 1997 and 1996.
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 generally accepted auditing
standards. 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 as of December 31,
1997 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 Variable Account as of December 31,
1997, the results of its operations and the changes in its net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
February 6, 1998
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENT OF CONDITION
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES COST VALUE
------- ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments in mutual funds:
Massachusetts Investors Trust ("MIT") Class A 77,156 $ 1,017,897 $ 1,351,607
Massachusetts Investors Growth Stock Fund ("MIG")
Class A 56,043 609,561 696,146
MFS Total Return Fund ("MTR") Class A 174,737 2,358,548 2,764,376
MFS Growth Opportunities Fund ("MGO") Class A 18,654 224,567 259,666
MFS Research Fund ("MFR") Class A 20,573 352,661 438,049
MFS Bond Fund ("MFB") Class A 50,195 651,802 683,432
MFS Money Market Fund ("MCM") 280,662 280,662 280,662
MFS Government Money Market Fund ("MCG") 70,666 70,666 70,666
MFS High Income Fund ("MFH") Class A 66,478 339,707 367,643
MFS World Governments Fund ("MWG") Class A 34,461 403,963 373,678
MFS Emerging Growth Fund ("MEG") Class A 27,273 652,461 986,812
------------ ------------
NET ASSETS $ 6,962,495 $ 8,272,737
------------ ------------
------------ ------------
NET ASSETS APPLICABLE TO OWNERS OF DEFERRED UNITS UNIT VALUE VALUE
------- ------------ ------------
VARIABLE ANNUITY CONTRACTS:
MIT 24,219 $ 55.8438 $ 1,351,607
MIG 13,024 53.6803 696,146
MTR 67,638 41.7612 2,764,376
MGO 6,582 39.2762 259,666
MFR 9,945 44.0450 438,049
MFB 25,870 26.0312 683,432
MCM 17,324 16.1968 280,662
MCG 4,440 15.9182 70,666
MFH 13,294 27.8588 367,643
MWG 12,546 29.5139 373,678
MEG 16,548 59.9380 986,812
------------
NET ASSETS $ 8,272,737
------------
------------
</TABLE>
See notes to financial statements.
-2-
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
MIT MIG MTR MGO
Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Income and Expenses:
Dividend income and capital gain
distributions received $ 104,180 $ 106,496 $ 271,434 $ 32,149
Mortality and expense risk charges 15,811 7,540 34,992 3,178
----------- ----------- ----------- -----------
Net investment income (loss) 88,369 98,956 236,442 28,971
----------- ----------- ----------- -----------
Realized and Unrealized Gains
(Losses):
Realized gains (losses) on
investment transactions:
Proceeds from sales 217,199 68,722 439,289 20,303
Cost of investments sold 178,678 72,046 336,187 13,929
----------- ----------- ----------- -----------
Net realized gains (losses) 38,521 (3,324) 103,102 6,374
----------- ----------- ----------- -----------
Net Unrealized Appreciation
(Depreciation) on Investments:
End of year 333,710 86,585 405,828 35,099
Beginning of year 142,622 (32,234) 329,636 22,925
----------- ----------- ----------- -----------
Change in unrealized
appreciation 191,088 118,819 76,192 12,174
----------- ----------- ----------- -----------
Realized and unrealized gains
(losses) 229,609 115,495 179,294 18,548
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
from Operations $ 317,978 $ 214,451 $ 415,736 $ 47,519
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
MFR MFB MCM MCG
Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- -----------
Income and Expenses:
Dividend income and capital gain
distributions received $ 19,376 $ 54,236 $ 14,581 $ 3,453
Mortality and expense risk charges 4,942 9,999 3,939 984
----------- ----------- ----------- -----------
Net investment income (loss) 14,434 44,237 10,642 2,469
----------- ----------- ----------- -----------
Realized and Unrealized Gains
(Losses):
Realized gains (losses) on
investment transactions:
Proceeds from sales 46,369 625,325 265,304 27,494
Cost of investments sold 29,173 660,926 265,304 27,494
----------- ----------- ----------- -----------
Net realized gains (losses) 17,196 (35,601) - -
----------- ----------- ----------- -----------
Net Unrealized Appreciation
(Depreciation) on Investments:
End of year 85,388 31,630 - -
Beginning of year 52,320 (26,014) - -
----------- ----------- ----------- -----------
Change in unrealized
appreciation 33,068 57,644 - -
----------- ----------- ----------- -----------
Realized and unrealized gains
(losses) 50,264 22,043 - -
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
from Operations $ 64,698 $ 66,280 $ 10,642 $ 2,469
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
MFH MWG MEG
Sub-Account Sub-Account Sub-Account Total
----------- ----------- ----------- -----------
Income and Expenses:
Dividend income and capital gain
distributions received $ 35,579 $ 16,348 $ 9,252 $ 667,084
Mortality and expense risk charges 5,371 5,435 12,460 104,651
----------- ----------- ----------- -----------
Net investment income (loss) 30,208 10,913 (3,208) 562,433
----------- ----------- ----------- -----------
Realized and Unrealized Gains
(Losses):
Realized gains (losses) on
investment transactions:
Proceeds from sales 101,755 162,413 314,261 2,288,434
Cost of investments sold 100,464 179,549 181,324 2,045,074
----------- ----------- ----------- -----------
Net realized gains (losses) 1,291 (17,136) 132,937 243,360
----------- ----------- ----------- -----------
Net Unrealized Appreciation
(Depreciation) on Investments:
End of year 27,936 (30,285) 334,351 1,310,242
Beginning of year 13,479 (31,188) 296,679 768,225
----------- ----------- ----------- -----------
Change in unrealized
appreciation 14,457 903 37,672 542,017
----------- ----------- ----------- -----------
Realized and unrealized gains
(losses) 15,748 (16,233) 170,609 785,377
----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
from Operations $ 45,956 $ (5,320) $ 167,401 $ 1,347,810
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements.
-3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
MIT MIG
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 88,369 $ 93,649 $ 98,956 $ 109,259
Net realized gains (losses) 38,521 6,420 (3,324) 1,331
Net unrealized gains (losses) 191,088 116,255 118,819 (23,684)
------------ ------------ ---------- ----------
Increase (decrease) in net assets from operations 317,978 216,324 214,451 86,906
------------ ------------ ---------- ----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 54,860 59,276 26,278 22,225
Net transfers between Sub-Accounts and
Fixed Accounts 75,536 (8,441) 20,971 18,419
Withdrawals, surrenders and account fees (149,210) (85,209) (44,311) (35,098)
------------ ------------ ---------- ----------
Net contract owner activity (18,814) (34,374) 2,938 5,546
------------ ------------ ---------- ----------
Increase (decrease) in net assets 299,164 181,950 217,389 92,452
Net Assets:
Beginning of year 1,052,443 870,493 478,757 386,305
------------ ------------ ---------- ----------
End of year $ 1,351,607 $ 1,052,443 $ 696,146 $ 478,757
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
MTR MGO
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
Operations:
Net investment income (expense) $ 236,442 $ 244,417 $ 28,971 $ 21,254
Net realized gains (losses) 103,102 60,205 6,374 12,751
Net unrealized gains (losses) 76,192 4,956 12,174 10,378
------------ ------------ ---------- ----------
Increase (decrease) in net assets from operations 415,736 309,578 47,519 44,383
------------ ------------ ---------- ----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 91,990 61,458 4,030 4,745
Net transfers between Sub-Accounts and
Fixed Accounts 114,657 (42,651) (357) 21,023
Withdrawals, surrenders and account fees (398,900) (200,379) (12,299) (51,946)
------------ ------------ ---------- ----------
Net contract owner activity (192,253) (181,572) (8,626) (26,178)
------------ ------------ ---------- ----------
Increase (decrease) in net assets 223,483 128,006 38,893 18,205
Net Assets:
Beginning of year 2,540,893 2,412,887 220,773 202,568
------------ ------------ ---------- ----------
End of year $ 2,764,376 $ 2,540,893 $ 259,666 $ 220,773
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
MFR MFB
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
Operations:
Net investment income (expense) $ 14,434 $ 10,751 $ 44,237 $ 58,696
Net realized gains (losses) 17,196 10,682 (35,601) (546)
Net unrealized gains (losses) 33,068 23,132 57,644 (31,879)
------------ ------------ ---------- ----------
Increase (decrease) in net assets from operations 64,698 44,565 66,280 26,271
------------ ------------ ---------- ----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 15,074 7,123 191,747 30,397
Net transfers between Sub-Accounts and
Fixed Accounts 130,826 61,532 (159,325) (4,412)
Withdrawals, surrenders and account fees (42,302) (25,750) (459,087) (21,523)
------------ ------------ ---------- ----------
Net contract owner activity 103,598 42,905 (426,665) 4,462
------------ ------------ ---------- ----------
Increase (decrease) in net assets 168,296 87,470 (360,385) 30,733
Net Assets:
Beginning of year 269,753 182,283 1,043,817 1,013,084
------------ ------------ ---------- ----------
End of year $ 438,049 $ 269,753 $ 683,432 $ 1,043,817
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
(Continued)
</TABLE>
-4-
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
MCM MCG
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 10,642 $ 11,357 $ 2,469 $ 2,862
Net realized gains (losses) - - - -
Net unrealized gains (losses) - - - -
--------- --------- -------- --------
Increase (decrease) in net assets from operations 10,642 11,357 2,469 2,862
--------- --------- -------- --------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 20,251 17,561 2,302 4,996
Net transfers between Sub-Accounts and Fixed Accounts (82,830) (69,648) (20,869) -
Withdrawals, surrenders and account fees (10,040) (51,178) (5,892) (107)
--------- --------- -------- --------
Net contract owner activity (72,619) (103,265) (24,459) 4,889
--------- --------- -------- --------
Increase (decrease) in net assets (61,977) (91,908) (21,990) 7,751
Net Assets:
Beginning of year 342,639 434,547 92,656 84,905
--------- --------- -------- --------
End of year $ 280,662 $ 342,639 $ 70,666 $ 92,656
--------- --------- -------- --------
--------- --------- -------- --------
MFH MWG
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
Operations:
Net investment income (expense) $ 30,208 $ 30,770 $ 10,913 $ 6,496
Net realized gains (losses) 1,291 (1,897) (17,136) (7,467)
Net unrealized gains (losses) 14,457 14,638 903 20,174
--------- --------- -------- --------
Increase (decrease) in net assets from operations 45,956 43,511 (5,320) 19,203
--------- --------- -------- --------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 1,698 2,296 66,047 9,585
Net transfers between Sub-Accounts and Fixed Accounts - (1,081) (82,359) (33,415)
Withdrawals, surrenders and account fees (96,943) (32,317) (75,626) (38,748)
--------- --------- -------- --------
Net contract owner activity (95,245) (31,102) (91,938) (62,578)
--------- --------- -------- --------
Increase (decrease) in net assets (49,289) 12,409 (97,258) (43,375)
Net Assets:
Beginning of year 416,932 404,523 470,936 514,311
--------- --------- -------- --------
End of year $ 367,643 $ 416,932 $ 373,678 $ 470,936
--------- --------- -------- --------
--------- --------- -------- --------
MEG
SUB-ACCOUNT TOTAL
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
Operations:
Net investment income (expense) $ (3,208) $ (807) $ 562,433 $ 588,704
Net realized gains (losses) 132,937 49,734 243,360 131,213
Net unrealized gains (losses) 37,672 75,648 542,017 209,618
--------- --------- -------- --------
Increase (decrease) in net assets from operations 167,401 124,575 1,347,810 929,535
--------- --------- -------- --------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 27,670 26,289 501,947 245,951
Net transfers between Sub-Accounts and Fixed Accounts 43,886 28,955 40,136 (29,719)
Withdrawals, surrenders and account fees (229,670) (75,899) (1,524,280) (618,154)
--------- --------- -------- --------
Net contract owner activity (158,114) (20,655) (982,197) (401,922)
--------- --------- -------- --------
Increase (decrease) in net assets 9,287 103,920 365,613 527,613
Net Assets:
Beginning of year 977,525 873,605 7,907,124 7,379,511
--------- --------- -------- --------
End of year $ 986,812 $ 977,525 $ 8,272,737 $ 7,907,124
--------- --------- -------- --------
--------- --------- -------- --------
(Concluded)
</TABLE>
See notes to financial statements.
-5-
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life (N.Y.) Variable Account A (the "Variable Account"), a separate
account of Sun Life Insurance and Annuity Company of New York (the
"Sponsor"), a wholly owned subsidiary of Sun Life Assurance Company of
Canada (U.S.), was established on December 3, 1984 as a funding vehicle for
individual 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 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 generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
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.
-6-
<PAGE>
(3) CONTRACT CHARGES
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
deduction is at an effective annual rate of 1.3%.
Each year on the contract anniversary, a contract maintenance charge
("Account Fee") of $30 is deducted from each contract's accumulation
account to cover administrative expenses relating to the 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 5% of the
purchase payments made under the contract.
-7-
<PAGE>
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS
<TABLE>
<CAPTION>
MIT MIG
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Units outstanding, beginning of year 24,506 25,203 13,107 12,814
Units purchased 1,081 1,571 531 664
Units transferred between
Sub-Accounts and Fixed Accounts 1,654 (220) 446 613
Units withdrawn and surrendered (3,022) (2,048) (1,060) (984)
------ ------ ------ ------
Units outstanding, end of year 24,219 24,506 13,024 13,107
------ ------ ------ ------
------ ------ ------ ------
MTR MGO
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
Units outstanding, beginning of year 72,562 77,949 6,814 7,521
Units purchased 2,518 1,916 111 162
Units transferred between
Sub-Accounts and Fixed Accounts 3,183 (1,286) (10) 828
Units withdrawn and surrendered (10,625) (6,017) (333) (1,697)
------ ------ ------ ------
Units outstanding, end of year 67,638 72,562 6,582 6,814
------ ------ ------ ------
------ ------ ------ ------
MFR MFB
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
Units outstanding, beginning of year 7,286 6,052 43,291 43,111
Units purchased 341 215 8,049 1,322
Units transferred between
Sub-Accounts and Fixed Accounts 3,373 1,743 (6,684) (189)
Units withdrawn and surrendered (1,055) (724) (18,786) (953)
------ ------ ------ ------
Units outstanding, end of year 9,945 7,286 25,870 43,291
------ ------ ------ ------
------ ------ ------ ------
MCM MCG
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
Units outstanding, beginning of year 21,922 28,742 6,013 5,691
Units purchased 1,276 1,141 147 329
Units transferred between
Sub-Accounts and Fixed Accounts (5,243) (4,598) (1,349) -
Units withdrawn and surrendered (631) (3,363) (371) (7)
------ ------ ------ ------
Units outstanding, end of year 17,324 21,922 4,440 6,013
------ ------ ------ ------
------ ------ ------ ------
MFH MWG
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- -----------
1997 1996 1997 1996
---- ---- ---- ----
Units outstanding, beginning of year 16,765 18,087 15,694 17,846
Units purchased 65 99 2,245 334
Units transferred between
Sub-Accounts and Fixed Accounts - (46) (2,790) (1,137)
Units withdrawn and surrendered (3,536) (1,375) (2,603) (1,349)
------ ------ ------ ------
Units outstanding, end of year 13,294 16,765 12,546 15,694
------ ------ ------ ------
------ ------ ------ ------
MEG
SUB-ACCOUNT
-----------
YEAR ENDED
DECEMBER 31,
-----------
1997 1996
---- ----
Units outstanding, beginning of year 19,505 19,750
Units purchased 476 539
Units transferred between
Sub-Accounts and Fixed Accounts 844 606
Units withdrawn and surrendered (4,277) (1,390)
------ ------
Units outstanding, end of year 16,548 19,505
------ ------
------ ------
</TABLE>
* * * * * *
-8-
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