|
|
|
|
|
|
|
|
|
|
Previous: FIRST INVESTORS U S GOVERNMENT PLUS FUND, N-30D, 1999-03-05 |
Next: HOTCHKIS & WILEY FUNDS, N-30D, 1999-03-05 |
<PAGE>
-----------------------------------------------------
SUN LIFE (N.Y.) VARIABLE
ACCOUNT A
Annual Report for the
Year Ended December 31, 1998
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENT OF CONDITION
DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES COST VALUE
----- ---- -----
<S> <C> <C> <C>
ASSETS:
Investments in mutual funds:
Massachusetts Investors Trust Class A ("MIT") 79,982 $1,154,442 $1,619,501
Massachusetts Investors Growth Stock Fund
Class A ("MIG") 75,903 936,193 1,207,592
MFS Total Return Fund Class A ("MTR") 153,078 2,281,482 2,290,621
MFS Growth Opportunities Fund Class A ("MGO") 21,604 282,090 344,633
MFS Research Fund Class A ("MFR") 21,211 393,491 533,430
MFS Bond Fund Class A ("MFB") 43,952 575,848 584,161
MFS Money Market Fund ("MCM") 235,124 235,124 235,124
MFS Government Money Market Fund ("MCG") 29,575 29,575 29,575
MFS High Income Fund Class A ("MFH") 51,580 264,389 263,933
MFS World Governments Fund Class A ("MWG") 18,305 202,099 193,280
MFS Emerging Growth Fund Class A ("MEG") 23,844 627,269 1,063,430
---------- ----------
NET ASSETS $6,982,002 $8,365,280
---------- ----------
---------- ----------
<CAPTION>
NET ASSETS APPLICABLE TO OWNERS OF DEFERRED UNITS UNIT VALUE VALUE
VARIABLE ANNUITY CONTRACTS: ----- ---------- -----
MIT 23,908 $67.7826 $1,619,501
MIG 16,336 74.1777 1,207,592
MTR 51,043 46.1511 2,290,621
MGO 6,850 50.0882 344,633
MFR 9,981 53.4381 533,430
MFB 21,362 26.8571 584,161
MCM 14,005 16.7827 235,124
MCG 1,795 16.4692 29,575
MFH 9,605 27.7674 263,933
MWG 6,258 30.3299 193,280
MEG 14,523 73.6526 1,063,430
----------
NET ASSETS $8,365,280
----------
----------
</TABLE>
See notes to financial statements.
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MIT MIG MTR MGO MFR MFB
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 $ 90,273 $ 94,522 $372,952 $36,419 $19,402 $42,607
Mortality and expense risk charges 18,525 11,857 33,602 3,756 6,209 7,881
-------- -------- -------- ------- ------- -------
Net investment income (loss) 71,748 82,665 339,350 32,663 13,193 34,726
-------- -------- -------- ------- ------- -------
Realized and unrealized gains
(losses):
Realized gains (losses) on
investment transactions:
Proceeds from sales 228,436 110,577 1,228,612 31,436 60,356 175,086
Cost of investments sold 152,931 85,661 907,637 20,506 34,629 165,140
-------- -------- -------- ------- ------- -------
Net realized gains (losses) 75,505 24,916 320,975 10,930 25,727 9,946
-------- -------- -------- ------- ------- -------
Net unrealized appreciation
(depreciation) on investments:
End of year 465,059 271,399 9,139 62,543 139,939 8,313
Beginning of year 333,710 86,585 405,828 35,099 85,388 31,630
-------- -------- -------- ------- ------- -------
Change in unrealized
appreciation (depreciation) 131,349 184,814 (396,689) 27,444 54,551 (23,317)
-------- -------- -------- ------- ------- -------
Realized and unrealized gains
(losses) 206,854 209,730 (75,714) 38,374 80,278 (13,371)
-------- -------- -------- ------- ------- -------
Increase in net assets
from operations $278,602 $292,395 $263,636 $71,037 $93,471 $21,355
-------- -------- -------- ------- ------- -------
-------- -------- -------- ------- ------- -------
<CAPTION>
MCM MCG MFH MWG MEG
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT TOTAL
----------- ----------- ----------- ----------- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
Income and expenses:
Dividend income and capital gain
distributions received $ 11,831 $ 3,346 $ 27,421 $ 12,445 $ 9,594 $ 720,812
Mortality and expense risk charges 3,147 915 4,133 3,513 12,854 106,392
-------- ------- -------- -------- -------- ----------
Net investment income (loss) 8,684 2,431 23,288 8,932 (3,260) 614,420
-------- ------- -------- -------- -------- ----------
Realized and unrealized gains
(losses):
Realized gains (losses) on
investment transactions:
Proceeds from sales 177,887 56,198 113,977 224,319 218,874 2,625,758
Cost of investments sold 177,887 56,198 104,106 245,174 102,321 2,052,190
-------- ------- -------- -------- -------- ----------
Net realized gains (losses) - - 9,871 (20,855) 116,553 573,568
-------- ------- -------- -------- -------- ----------
Net unrealized appreciation
(depreciation) on investments:
End of year - - (456) (8,819) 436,161 1,383,278
Beginning of year - - 27,936 (30,285) 334,351 1,310,242
-------- ------- -------- -------- -------- ----------
Change in unrealized
appreciation (depreciation) - - (28,392) 21,466 101,810 73,036
-------- ------- -------- -------- -------- ----------
Realized and unrealized gains
(losses) - - (18,521) 611 218,363 646,604
-------- ------- -------- -------- -------- ----------
Increase in net assets
from operations $ 8,684 $ 2,431 $ 4,767 $ 9,543 $215,103 $1,261,024
-------- ------- -------- -------- -------- ----------
-------- ------- -------- -------- -------- ----------
</TABLE>
See notes to financial statements.
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
MIT MIG MTR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ -----------
1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 71,748 $ 88,369 $ 82,665 $ 98,956 $ 339,350 $ 236,442
Net realized gains (losses) 75,505 38,521 24,916 (3,324) 320,975 103,102
Net unrealized gains (losses) 131,349 191,088 184,814 118,819 (396,689) 76,192
---------- ---------- ---------- -------- ---------- ----------
Increase in net assets from operations 278,602 317,978 292,395 214,451 263,636 415,736
---------- ---------- ---------- -------- ---------- ----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 66,096 54,860 22,531 26,278 28,124 91,990
Net transfers between Sub-Accounts
and Fixed Accounts 58,862 75,536 263,215 20,971 (8,578) 114,657
Withdrawals, surrenders and account
fees (135,666) (149,210) (66,695) (44,311) (756,937) (398,900)
---------- ---------- ---------- -------- ---------- ----------
Net contract owner activity (10,708) (18,814) 219,051 2,938 (737,391) (192,253)
---------- ---------- ---------- -------- ---------- ----------
Increase (decrease) in net assets 267,894 299,164 511,446 217,389 (473,755) 223,483
Net Assets:
Beginning of year 1,351,607 1,052,443 696,146 478,757 2,764,376 2,540,893
---------- ---------- ---------- -------- ---------- ----------
End of year $1,619,501 $1,351,607 $1,207,592 $696,146 $2,290,621 $2,764,376
---------- ---------- ---------- -------- ---------- ----------
---------- ---------- ---------- -------- ---------- ----------
<CAPTION>
MGO MFR MFB
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ -----------
1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 32,663 $ 28,971 $ 13,193 $ 14,434 $ 34,726 $ 44,237
Net realized gains (losses) 10,930 6,374 25,727 17,196 9,946 (35,601)
Net unrealized gains (losses) 27,444 12,174 54,551 33,068 (23,317) 57,644
-------- -------- -------- -------- -------- ----------
Increase in net assets from operations 71,037 47,519 93,471 64,698 21,355 66,280
-------- -------- -------- -------- -------- ----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 4,092 4,030 17,561 15,074 47,843 191,747
Net transfers between Sub-Accounts
and Fixed Accounts 37,874 (357) 36,184 130,826 (125,568) (159,325)
Withdrawals, surrenders and account
fees (28,036) (12,299) (51,835) (42,302) (42,901) (459,087)
-------- -------- -------- -------- -------- ----------
Net contract owner activity 13,930 (8,626) 1,910 103,598 (120,626) (426,665)
-------- -------- -------- -------- -------- ----------
Increase (decrease) in net assets 84,967 38,893 95,381 168,296 (99,271) (360,385)
Net Assets:
Beginning of year 259,666 220,773 438,049 269,753 683,432 1,043,817
-------- -------- -------- -------- -------- ----------
End of year $344,633 $259,666 $533,430 $438,049 $584,161 $ 683,432
-------- -------- -------- -------- -------- ----------
-------- -------- -------- -------- -------- ----------
</TABLE>
(Continued)
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
MCM MCG MFH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ -----------
1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 8,684 $ 10,642 $ 2,431 $ 2,469 $ 23,288 $ 30,208
Net realized gains (losses) - - - - 9,871 1,291
Net unrealized gains (losses) - - - - (28,392) 14,457
-------- -------- -------- -------- --------- --------
Increase (decrease) in net assets
from operations 8,684 10,642 2,431 2,469 4,767 45,956
-------- -------- -------- -------- --------- --------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 21,471 20,251 12,068 2,302 1,602 1,698
Net transfers between Sub-Accounts
and Fixed Accounts (17,337) (82,830) (54,219) (20,869) (44,464) -
Withdrawals, surrenders and
account fees (58,356) (10,040) (1,371) (5,892) (65,615) (96,943)
-------- -------- -------- -------- --------- --------
Net contract owner activity (54,222) (72,619) (43,522) (24,459) (108,477) (95,245)
-------- -------- -------- -------- --------- --------
Increase (decrease) in net assets (45,538) (61,977) (41,091) (21,990) (103,710) (49,289)
Net Assets:
Beginning of year 280,662 342,639 70,666 92,656 367,643 416,932
-------- -------- -------- -------- --------- --------
End of year $235,124 $280,662 $29,575 $70,666 $ 263,933 $367,643
-------- -------- -------- -------- --------- --------
-------- -------- -------- -------- --------- --------
<CAPTION>
MWG MEG
SUB-ACCOUNT SUB-ACCOUNT TOTAL
----------- ----------- -----
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ -----------
1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 8,932 $ 10,913 $ (3,260) $ (3,208) $ 614,420 $ 562,433
Net realized gains (losses) (20,855) (17,136) 116,553 132,937 573,568 243,360
Net unrealized gains (losses) 21,466 903 101,810 37,672 73,036 542,017
--------- -------- ---------- --------- ----------- -----------
Increase (decrease) in net assets
from operations 9,543 (5,320) 215,103 167,401 1,261,024 1,347,810
--------- -------- ---------- --------- ----------- -----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 5,054 66,047 28,961 27,670 255,403 501,947
Net transfers between Sub-Accounts
and Fixed Accounts (112,998) (82,359) (57,971) 43,886 (25,000) 40,136
Withdrawals, surrenders and
account fees (81,987) (75,626) (109,475) (229,670) (1,398,884) (1,524,280)
--------- -------- ---------- --------- ----------- -----------
Net contract owner activity (189,941) (91,938) (138,485) (158,114) (1,168,481) (982,197)
--------- -------- ---------- --------- ----------- -----------
Increase (decrease) in net assets (180,398) (97,258) 76,618 9,287 92,543 365,613
Net Assets:
Beginning of year 373,678 470,936 986,812 977,525 8,272,737 7,907,124
--------- -------- ---------- --------- ----------- -----------
End of year $ 193,280 $373,678 $1,063,430 $ 986,812 $ 8,365,280 $ 8,272,737
--------- -------- ---------- --------- ----------- -----------
--------- -------- ---------- --------- ----------- -----------
</TABLE>
(Concluded)
See notes to financial statements.
<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.
<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.
<PAGE>
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS
<TABLE>
<CAPTION>
MIT MIG MTR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of year 24,219 24,506 13,024 13,107 67,638 72,562
Units purchased 1,019 1,081 360 531 565 2,518
Units transferred between
Sub-Accounts and Fixed Accounts 941 1,654 3,998 446 (214) 3,183
Units withdrawn and surrendered (2,271) (3,022) (1,046) (1,060) (16,946) (10,625)
------ ------ ------ ------ ------- -------
Units outstanding, end of year 23,908 24,219 16,336 13,024 51,043 67,638
------ ------ ------ ------ ------- -------
------ ------ ------ ------ ------- -------
<CAPTION>
MGO MFR MFB
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of year 6,582 6,814 9,945 7,286 25,870 43,291
Units purchased 93 111 362 341 1,799 8,049
Units transferred between
Sub-Accounts and Fixed Accounts 793 (10) 738 3,373 (4,699) (6,684)
Units withdrawn and surrendered (618) (333) (1,064) (1,055) (1,608) (18,786)
------ ------ ------ ------ ------- -------
Units outstanding, end of year 6,850 6,582 9,981 9,945 21,362 25,870
------ ------ ------ ------ ------- -------
------ ------ ------ ------ ------- -------
<CAPTION>
MCM MCG MFH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1998 1997 1998 1997 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of year 17,324 21,922 4,440 6,013 13,294 16,765
Units purchased 1,313 1,276 734 147 58 65
Units transferred between
Sub-Accounts and Fixed Accounts (1,077) (5,243) (3,295) (1,349) (1,518) -
Units withdrawn and surrendered (3,555) (631) (84) (371) (2,229) (3,536)
------ ------ ------ ------ ------- -------
Units outstanding, end of year 14,005 17,324 1,795 4,440 9,605 13,294
------ ------ ------ ------ ------- -------
------ ------ ------ ------ ------- -------
<CAPTION>
MWG MEG
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------ ------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Units outstanding, beginning of year 12,546 15,694 16,548 19,505
Units purchased 177 2,245 452 476
Units transferred between
Sub-Accounts and Fixed Accounts (3,735) (2,790) (815) 844
Units withdrawn and surrendered (2,730) (2,603) (1,662) (4,277)
------ ------ ------ ------
Units outstanding, end of year 6,258 12,546 14,523 16,548
------ ------ ------ ------
------ ------ ------ ------
</TABLE>
* * * * *
<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, 1998, the
related statement of operations for the year then ended, and the statements
of changes in net assets for the years ended December 31, 1998 and 1997.
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,
1998 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,
1998, 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 4, 1999
|
|