<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
PERFORMANCE SUMMARY
These performance results do not reflect any applicable surrender charges. Past
performance is no guarantee of future results.
<TABLE>
<CAPTION>
UNIT VALUE
-------------------------------- PERCENTAGE
JUNE 30, CHANGE
DECEMBER 31, 1998 1999 IN UNIT VALUE
----------------- ------------ -------------
<S> <C> <C> <C>
REGATTA - NY CONTRACTS:
Capital Appreciation Series........................ $26.0156 $27.9835 7.56%
Massachusetts Investors Trust Series............... 26.3767 27.7514 5.21
Government Securities Series....................... 13.3628 12.9941 (2.76)
High Yield Series.................................. 14.8376 15.4750 4.30
Managed Sectors Series............................. 21.7749 25.0677 15.12
Money Market Series................................ 11.9179 12.0922 1.46
Total Return Series................................ 18.9202 19.7176 4.21
Utilities Series................................... 22.7757 24.8779 9.23
Global Governments Series.......................... 13.9401 12.8525 (7.80)
Global Growth Series............................... 15.7177 17.6844 12.51
REGATTA GOLD - NY CONTRACTS:
Bond Series........................................ $10.0000* $ 9.8973 (1.03)%
Capital Appreciation Series........................ 17.2946 18.6028 7.56
Capital Opportunities Series....................... 13.5854 15.9554 17.45
Massachusetts Investors Trust Series............... 17.8458 18.7758 5.21
Emerging Growth Series............................. 16.7445 18.6244 11.23
Equity Income Series............................... 10.0000* 10.1932 1.93
MFS/Foreign & Colonial Emerging Markets Equity
Series............................................ 6.0241 7.7332 28.37
International Growth Series........................ 12.8587 12.7151 (1.12)
International Growth and Income Series............. 9.4088 9.7027 3.12
Government Securities Series....................... 11.7627 11.4381 (2.76)
High Yield Series.................................. 11.7316 12.2355 4.30
Managed Sectors Series............................. 15.5700 17.9242 15.12
Massachusetts Investors Growth Stock Series........ 10.0000* 10.3467 3.47
Money Market Series................................ 10.8609 11.0197 1.46
New Discovery Series............................... 10.0000* 11.0983 10.98
Research Series.................................... 16.1649 17.5036 8.28
Research Growth and Income Series.................. 12.9195 13.9263 7.79
Total Return Series................................ 14.2649 14.8662 4.22
Utilities Series................................... 16.9849 18.5526 9.23
Global Asset Allocation Series..................... 12.2289 12.5823 2.89
Global Governments Series.......................... 11.4123 10.5219 (7.80)
Global Growth Series............................... 13.3854 15.0602 12.51
Global Total Return Series......................... 13.8923 13.7344 (1.14)
</TABLE>
*Reflects unit value on date of commencement of operations.
1
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION-- June 30, 1999
<TABLE>
<CAPTION>
ASSETS:
Investments in MFS/Sun Life Series Trust: Shares Cost Value
---------- ------------ ------------
<S> <C> <C> <C>
Bond Series ("BDS")........................... 3,748 $ 38,959 $ 38,845
Capital Appreciation Series ("CAS")........... 1,204,692 46,902,744 53,241,244
Capital Opportunities Series ("COS").......... 243,758 3,920,652 4,785,471
Massachusetts Investors Trust Series
("MIT")...................................... 2,136,439 68,819,244 80,131,769
Emerging Growth Series ("EGS")................ 1,166,208 22,273,693 29,922,683
Equity Income Series ("EIS").................. 7,045 79,859 80,911
MFS/Foreign & Colonial Emerging Markets Equity
Series ("FCE")............................... 24,729 210,866 239,411
International Growth Series ("FCG")........... 252,599 2,970,933 3,211,319
International Growth and Income Series
("FCI")...................................... 44,131 446,747 443,676
Government Securities Series ("GSS").......... 1,120,429 14,501,351 13,957,524
High Yield Series ("HYS")..................... 1,730,879 16,271,129 15,340,673
Managed Sectors Series ("MSS")................ 437,945 12,090,683 14,338,566
Massachusetts Investors Growth Stock Series
("MIS")...................................... 52,480 667,921 691,859
Money Market Series ("MMS")................... 22,038,703 22,038,703 22,038,703
New Discovery Series ("NWD").................. 31,979 338,127 372,172
Research Series ("RES")....................... 1,770,829 35,773,935 42,945,550
Research Growth and Income Series ("RGS")..... 285,804 3,576,989 4,140,791
Total Return Series ("TRS")................... 2,949,099 57,352,181 56,461,565
Utilities Series ("UTS")...................... 793,917 12,533,749 13,198,416
Global Asset Allocation Series ("GAA")........ 239,554 3,468,431 3,390,141
Global Governments Series ("GGS")............. 427,612 4,850,125 4,340,462
Global Growth Series ("GGR").................. 749,048 10,901,297 12,761,539
Global Total Return Series ("GTR")............ 317,716 4,808,855 4,855,741
------------ ------------
$344,837,173 $380,929,031
------------
------------
LIABILITY:
Payable to sponsor............................ (76,764)
------------
Net Assets................................ $380,852,267
------------
------------
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION-- June 30, 1999 -- continued
<TABLE>
<CAPTION>
NET ASSETS:
Applicable to Owners of
Deferred Variable Annuity
Contracts
--------------------------------- Reserve for
Unit Variable
Units Value Value Annuities Total
--------- -------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Regatta-NY Contracts:
CAS............................ 953,701 $27.9835 $ 26,682,219 $ 132,891 $ 26,815,110
MIT............................ 755,046 27.7514 20,951,695 93,401 21,045,096
GSS............................ 590,036 12.9941 7,667,192 -- 7,667,192
HYS............................ 267,062 15.4750 4,146,786 13,684 4,160,470
MSS............................ 281,748 25.0677 7,063,069 -- 7,063,069
MMS............................ 538,496 12.0922 6,507,277 136,506 6,643,783
TRS............................ 1,274,836 19.7176 25,132,601 651,900 25,784,501
UTS............................ 90,883 24.8779 2,261,720 -- 2,261,720
GGS............................ 231,932 12.8525 2,983,640 525 2,984,165
GGR............................ 337,019 17.6844 5,961,019 -- 5,961,019
------------ ----------- ------------
$109,357,218 $ 1,028,907 $110,386,125
------------ ----------- ------------
Regatta Gold-NY Contracts:
BDS............................ 3,925 $ 9.8973 $ 38,845 $ -- $ 38,845
CAS............................ 1,419,772 18.6028 26,412,701 -- 26,412,701
COS............................ 300,011 15.9554 4,785,471 -- 4,785,471
MIT............................ 3,126,906 18.7758 58,709,589 352,945 59,062,534
EGS............................ 1,606,165 18.6244 29,912,966 10,137 29,923,103
EIS............................ 7,938 10.1932 80,911 -- 80,911
FCE............................ 30,949 7.7332 239,411 -- 239,411
FCG............................ 252,561 12.7151 3,211,319 -- 3,211,319
FCI............................ 44,804 9.7027 434,738 9,331 444,069
GSS............................ 549,240 11.4381 6,281,097 9,221 6,290,318
HYS............................ 906,385 12.2355 11,098,272 94,200 11,192,472
MSS............................ 402,311 17.9242 7,211,542 65,950 7,277,492
MIS............................ 66,970 10.3467 691,859 -- 691,859
MMS............................ 1,396,827 11.0197 15,392,495 -- 15,392,495
NWD............................ 33,527 11.0983 372,172 -- 372,172
RES............................ 2,452,423 17.5036 42,926,631 19,738 42,946,369
RGS............................ 295,326 13.9263 4,122,545 19,034 4,141,579
TRS............................ 2,033,072 14.8662 30,213,346 408,417 30,621,763
UTS............................ 588,032 18.5526 10,927,420 9,676 10,937,096
GAA............................ 269,128 12.5823 3,390,141 -- 3,390,141
GGS............................ 128,839 10.5219 1,356,001 -- 1,356,001
GGR............................ 451,483 15.0602 6,800,520 -- 6,800,520
GTR............................ 349,464 13.7344 4,799,917 57,584 4,857,501
------------ ----------- ------------
$269,409,909 $ 1,056,233 $270,466,142
------------ ----------- ------------
Net Assets...................................... $378,767,127 $ 2,085,140 $380,852,267
------------ ----------- ------------
------------ ----------- ------------
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS-- Six Months Ended June 30, 1999
<TABLE>
<CAPTION>
BDS CAS COS MIT EGS
Sub-Account(a) Sub-Account Sub-Account Sub-Account Sub-Account
------------ --------------- ---------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ -- $ 5,810,381 $ 101,152 $ 5,978,256 $ 445,534
Mortality and expense risk charges.... (36) (316,487) (25,360 ) (471,461) (168,350)
Administrative charges................ (4) (37,978) (3,043 ) (56,575) (20,202)
----- --------------- ---------- ------------- ------------
Net investment income (loss)...... $ (40) $ 5,455,916 $ 72,749 $ 5,450,220 $ 256,982
----- --------------- ---------- ------------- ------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 40 $ 6,300,026 $ 415,409 $ 4,994,816 $ 1,362,527
Cost of investments sold............ (41) (5,006,331) (354,201 ) (3,791,559) (854,278)
----- --------------- ---------- ------------- ------------
Net realized gains (losses)....... $ (1) $ 1,293,695 $ 61,208 $ 1,203,257 $ 508,249
----- --------------- ---------- ------------- ------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ (114) $ 6,338,500 $ 864,819 $ 11,312,525 $ 7,648,990
Beginning of period................. -- 9,286,704 325,674 13,988,903 5,446,101
----- --------------- ---------- ------------- ------------
Change in unrealized appreciation
(depreciation)................... $ (114) $ (2,948,204) $ 539,145 $ (2,676,378) $ 2,202,889
----- --------------- ---------- ------------- ------------
Realized and unrealized gains
(losses)....................... $ (115) $ (1,654,509) $ 600,353 $ (1,473,121) $ 2,711,138
----- --------------- ---------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ (155) $ 3,801,407 $ 673,102 $ 3,977,099 $ 2,968,120
----- --------------- ---------- ------------- ------------
----- --------------- ---------- ------------- ------------
</TABLE>
<TABLE>
<CAPTION>
EIS FCE FCG FCI GSS
Sub-Account(b) 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 $ -- $ 101,373 $ 2,343 $ 704,364
Mortality and expense risk charges.... (33) (997) (20,517) (2,530) (84,750)
Administrative charges................ (4) (120) (2,462) (304) (10,170)
------ ----------- ------------ ----------- --------------
Net investment income (loss)...... $ 3 $ (1,117) $ 78,394 $ (491) $ 609,444
------ ----------- ------------ ----------- --------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 35 $ 63,738 $ 565,722 $ 58,718 $ 1,754,548
Cost of investments sold............ (35) (76,873) (483,514) (62,576) (1,728,092)
------ ----------- ------------ ----------- --------------
Net realized gains (losses)....... $ -- $ (13,135) $ 82,208 $ (3,858) $ 26,456
------ ----------- ------------ ----------- --------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 1,052 $ 28,545 $ 240,386 $ (3,071) $ (543,827)
Beginning of period................. -- (26,171) 445,284 (20,437) 480,350
------ ----------- ------------ ----------- --------------
Change in unrealized appreciation
(depreciation)................... $ 1,052 $ 54,716 $ (204,898) $ 17,366 $ (1,024,177)
------ ----------- ------------ ----------- --------------
Realized and unrealized gains
(losses)....................... $ 1,052 $ 41,581 $ (122,690) $ 13,508 $ (997,721)
------ ----------- ------------ ----------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 1,055 $ 40,464 $ (44,296) $ 13,017 $ (388,277)
------ ----------- ------------ ----------- --------------
------ ----------- ------------ ----------- --------------
</TABLE>
(a) For the period May 27, 1999 (commencement of operations of Sub-Account)
through June 30, 1999.
(b) For the period May 7, 1999 (commencement of operations of Sub-Account)
through June 30, 1999.
See notes to financial statements
4
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS-- Six Months Ended June 30, 1999 -- continued
<TABLE>
<CAPTION>
HYS MSS MIS MMS NWD
Sub-Account Sub-Account Sub-Account(c) Sub-Account Sub-Account(c)
------------ ------------ ------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 1,269,362 $ -- $ 3,998 $ 306,046 $ 2,042
Mortality and expense risk charges.... (93,854) (82,458) (1,026) (87,552) (710)
Administrative charges................ (11,262) (9,895) (123) (10,506) (85)
------------ ------------ ------------- ------------- --------------
Net investment income (loss)...... $ 1,164,246 $ (92,353) $ 2,849 $ 207,988 $ 1,247
------------ ------------ ------------- ------------- --------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 2,136,287 $ 1,296,534 $ 11,060 $ 11,202,999 $ 65,170
Cost of investments sold............ (2,117,239) (1,092,130) (11,556) (11,202,999) (61,948)
------------ ------------ ------------- ------------- --------------
Net realized gains (losses)....... $ 19,048 $ 204,404 $ (496) $ -- $ 3,222
------------ ------------ ------------- ------------- --------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ (930,456) $ 2,247,883 $ 23,938 $ -- $ 34,045
Beginning of period................. (374,889) 503,220 -- -- --
------------ ------------ ------------- ------------- --------------
Change in unrealized appreciation
(depreciation)................... $ (555,567) $ 1,744,663 $ 23,938 $ -- $ 34,045
------------ ------------ ------------- ------------- --------------
Realized and unrealized gains
(losses)....................... $ (536,519) $ 1,949,067 $ 23,442 $ -- $ 37,267
------------ ------------ ------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 627,727 $ 1,856,714 $ 26,291 $ 207,988 $ 38,514
------------ ------------ ------------- ------------- --------------
------------ ------------ ------------- ------------- --------------
</TABLE>
<TABLE>
<CAPTION>
RES RGS TRS UTS GAA
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............... $ 1,385,984 $ 13,223 $ 8,540,338 $ 1,417,357 $ 181,883
Mortality and expense risk charges.... (243,301) (22,124) (352,360) (72,465) (20,381)
Administrative charges................ (29,196) (2,655) (42,283) (8,696) (2,446)
------------ ------------ ------------- ------------- --------------
Net investment income (loss)...... $ 1,113,487 $ (11,556) $ 8,145,695 $ 1,336,196 $ 159,056
------------ ------------ ------------- ------------- --------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 1,351,037 $ 264,103 $ 7,105,310 $ 593,616 $ 237,958
Cost of investments sold............ (980,092) (195,742) (6,739,432) (490,545) (235,012)
------------ ------------ ------------- ------------- --------------
Net realized gains (losses)....... $ 370,945 $ 68,361 $ 365,878 $ 103,071 $ 2,946
------------ ------------ ------------- ------------- --------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 7,171,615 $ 563,802 $ (890,616) $ 664,667 $ (78,290)
Beginning of period................. 5,393,099 340,493 5,203,414 1,025,507 (11,804)
------------ ------------ ------------- ------------- --------------
Change in unrealized appreciation
(depreciation)................... $ 1,778,516 $ 223,309 $(6,094,030) $ (360,840) $ (66,486)
------------ ------------ ------------- ------------- --------------
Realized and unrealized gains
(losses)....................... $ 2,149,461 $ 291,670 $(5,728,152) $ (257,769) $ (63,540)
------------ ------------ ------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 3,262,948 $ 280,114 $ 2,417,543 $ 1,078,427 $ 95,516
------------ ------------ ------------- ------------- --------------
------------ ------------ ------------- ------------- --------------
</TABLE>
(c) For the period April 26, 1999 (commencement of operations of Sub-Account)
through June 30, 1999.
See notes to financial statements
5
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS-- Six Months Ended June 30, 1999 -- continued
<TABLE>
<CAPTION>
GGS GGR GTR
Sub-Account Sub-Account Sub-Account
------------- ------------- -------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 479,329 $ 481,352 $ 365,326
Mortality and expense risk charges.... (27,156) (71,720) (28,956)
Administrative charges................ (3,259) (8,606) (3,475)
------------- ------------- -------------
Net investment income (loss)...... $ 448,914 $ 401,026 $ 332,895
------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 363,846 $ 638,515 $ 154,826
Cost of investments sold............ (344,959) (498,118) (130,440)
------------- ------------- -------------
Net realized gains (losses)....... $ 18,887 $ 140,397 $ 24,386
------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ (509,663) $ 1,860,242 $ 46,886
Beginning of period................. 321,853 1,004,669 455,472
------------- ------------- -------------
Change in unrealized appreciation
(depreciation)................... $ (831,516) $ 855,573 $ (408,586)
------------- ------------- -------------
Realized and unrealized gains
(losses)....................... $ (812,629) $ 995,970 $ (384,200)
------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ (363,715) $ 1,396,996 $ (51,305)
------------- ------------- -------------
------------- ------------- -------------
</TABLE>
See notes to financial statements
6
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BDS
Sub-Account CAS COS
--------------- Sub-Account Sub-Account
Six Months ----------------------------- -----------------------------
Ended Six Months Year Ended Six Months Year Ended
June 30, Ended December 31, Ended December 31,
1999(a) June 30, 1999 1998 June 30, 1999 1998
--------------- ------------- ------------- ------------- -------------
OPERATIONS:
<S> <C> <C> <C> <C> <C>
Net investment income (loss).......... $ (40) $ 5,455,916 $ 4,135,133 $ 72,749 $ 38,427
Net realized gains (losses)........... (1) 1,293,695 2,308,268 61,208 125,390
Net unrealized gains (losses)......... (114) (2,948,204) 4,241,790 539,145 303,992
------- ------------- ------------- ------------- -------------
Increase (Decrease) in net assets
from operations.................. $ (155) $ 3,801,407 $10,685,191 $ 673,102 $ 467,809
------- ------------- ------------- ------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 14,000 $ 1,865,375 $ 5,645,231 $ 231,722 $1,250,849
Net transfers between Sub-Accounts
and Fixed Account.................. 25,000 (2,370,967) 2,271,423 631,016 1,000,555
Withdrawals, surrenders,
annuitizations and contract
charges............................ -- (974,171) (3,030,676) (80,183) (59,775)
------- ------------- ------------- ------------- -------------
Net accumulation activity......... $ 39,000 $(1,479,763) $ 4,885,978 $ 782,555 $2,191,629
------- ------------- ------------- ------------- -------------
Annuitization Activity:
Annuitizations...................... $ -- $ -- $ -- $ -- $ --
Annuity payments and account fees... -- (17,325) (39,858) -- --
Adjustments to annuity reserve...... -- (763) (3,612) -- --
------- ------------- ------------- ------------- -------------
Net annuitization activity........ $ -- $ (18,088) $ (43,470) $ -- $ --
------- ------------- ------------- ------------- -------------
Increase (Decrease) in net assets from
contract owner transactions.......... $ 39,000 $(1,497,851) $ 4,842,508 $ 782,555 $2,191,629
------- ------------- ------------- ------------- -------------
Increase (Decrease) in net assets... $ 38,845 $ 2,303,556 $15,527,699 $1,455,657 $2,659,438
NET ASSETS:
Beginning of period................... -- 50,924,255 35,396,556 3,329,814 670,376
------- ------------- ------------- ------------- -------------
End of period......................... $ 38,845 $53,227,811 $50,924,255 $4,785,471 $3,329,814
------- ------------- ------------- ------------- -------------
------- ------------- ------------- ------------- -------------
</TABLE>
(a) For the period May 27, 1999 (commencement of operations of Sub-Account)
through June 30, 1999.
See notes to financial statements
7
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MIT EIS
Sub-Account EGS Sub-Account
---------------------------- Sub-Account ---------------
Six Months ----------------------------- Six Months
Ended Year Ended Six Months Year Ended Ended
June 30, December 31, Ended December 31, June 30,
1999 1998 June 30, 1999 1998 1999(b)
------------ ------------- ------------- ------------- ---------------
OPERATIONS:
<S> <C> <C> <C> <C> <C>
Net investment income (loss).......... $ 5,450,220 $ 3,202,718 $ 256,982 $ 333,723 $ 3
Net realized gains (losses)........... 1,203,257 2,485,135 508,249 835,449 --
Net unrealized gains (losses)......... (2,676,378) 5,752,777 2,202,889 4,205,232 1,052
------------ ------------- ------------- ------------- -------
Increase (Decrease) in net assets
from operations.................. $ 3,977,099 $11,440,630 $ 2,968,120 $ 5,374,404 $ 1,055
------------ ------------- ------------- ------------- -------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 3,737,789 $13,430,158 $ 1,303,929 $ 4,565,860 $ 64,820
Net transfers between Sub-Accounts
and Fixed Account.................. 709,380 8,538,077 1,233,148 3,478,850 15,036
Withdrawals, surrenders,
annuitizations and contract
charges............................ (1,174,715) (3,468,420) (414,143) (857,070) --
------------ ------------- ------------- ------------- -------
Net accumulation activity......... $ 3,272,454 $18,499,815 $ 2,122,934 $ 7,187,640 $ 79,856
------------ ------------- ------------- ------------- -------
Annuitization Activity:
Annuitizations...................... $ -- $ 54,952 $ 9,003 $ -- $ --
Annuity payments and account fees... (20,919) (32,919) (51) -- --
Adjustments to annuity reserve...... (2,214) (6,680) 420 -- --
------------ ------------- ------------- ------------- -------
Net annuitization activity........ $ (23,133) $ 15,353 $ 9,372 $ -- $ --
------------ ------------- ------------- ------------- -------
Increase (Decrease) in net assets from
contract owner transactions.......... $ 3,249,321 $18,515,168 $ 2,132,306 $ 7,187,640 $ 79,856
------------ ------------- ------------- ------------- -------
Increase (Decrease) in net assets... $ 7,226,420 $29,955,798 $ 5,100,426 $12,562,044 $ 80,911
NET ASSETS:
Beginning of period................... 72,881,210 42,925,412 24,822,677 12,260,633 --
------------ ------------- ------------- ------------- -------
End of period......................... $80,107,630 $72,881,210 $29,923,103 $24,822,677 $ 80,911
------------ ------------- ------------- ------------- -------
------------ ------------- ------------- ------------- -------
</TABLE>
(b) For the period May 7, 1999 (commencement of operations of Sub-Account)
through June 30, 1999.
See notes to financial statements
8
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
FCI
FCE FCG Sub-Account
Sub-Account Sub-Account --------------------------
------------------------------ ----------------------------- Six Months
Six Months Year Ended Six Months Year Ended Ended Year Ended
Ended December 31, Ended December 31, June 30, December 31,
June 30, 1999 1998 June 30, 1999 1998 1999 1998
------------- -------------- ------------- ------------- ---------- -------------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)..... $ (1,117) $ 8,551 $ 78,394 $ 48,659 $ (491) $ (978)
Net realized gains (losses)...... (13,135) (192,800) 82,208 54,032 (3,858) (3,247)
Net unrealized gains (losses).... 54,716 25,906 (204,898) 385,099 17,366 (16,888)
------------- -------------- ------------- ------------- ---------- -------------
Increase (Decrease) in net
assets from operations...... $ 40,464 $ (158,343) $ (44,296) $ 487,790 $ 13,017 $(21,113)
------------- -------------- ------------- ------------- ---------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 4,551 $ 99,812 $ 40,693 $ 364,428 $ 34,398 $182,841
Net transfers between
Sub-Accounts and Fixed
Account....................... 56,846 (159,531) (256,273) 775,936 21,028 155,918
Withdrawals, surrenders,
annuitizations and contract
charges....................... (2,483) (6,955) (28,909) (151,648) (27,291) (10,066)
------------- -------------- ------------- ------------- ---------- -------------
Net accumulation activity.... $ 58,914 $ (66,674) $ (244,489) $ 988,716 $ 28,135 $328,693
------------- -------------- ------------- ------------- ---------- -------------
Annuitization Activity:
Annuitizations................. $ -- $ -- $ -- $ -- $ 8,601 $--
Annuity payments and account
fees.......................... -- -- -- -- (48) --
Adjustments to annuity
reserve....................... -- -- -- -- 393 --
------------- -------------- ------------- ------------- ---------- -------------
Net annuitization activity... $ -- $ -- $ -- $ -- $ 8,946 $--
------------- -------------- ------------- ------------- ---------- -------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 58,914 $ (66,674) $ (244,489) $ 988,716 $ 37,081 $328,693
------------- -------------- ------------- ------------- ---------- -------------
Increase (Decrease) in net
assets........................ $ 99,378 $ (225,017) $ (288,785) $1,476,506 $ 50,098 $307,580
NET ASSETS:
Beginning of period.............. 140,033 365,050 3,500,104 2,023,598 393,971 86,391
------------- -------------- ------------- ------------- ---------- -------------
End of period.................... $ 239,411 $ 140,033 $3,211,319 $3,500,104 $444,069 $393,971
------------- -------------- ------------- ------------- ---------- -------------
------------- -------------- ------------- ------------- ---------- -------------
</TABLE>
See notes to financial statements
9
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GSS HYS MSS
Sub-Account Sub-Account Sub-Account
---------------------------- ---------------------------- ----------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31, Ended December 31,
June 30, 1999 1998 June 30, 1999 1998 June 30, 1999 1998
------------- ------------ ------------- ------------ ------------- ------------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)....................... $ 609,444 $ 450,379 $1,164,246 $ 659,931 $ (92,353) $1,542,181
Net realized gains (losses)... 26,456 128,171 19,048 149,897 204,404 126,624
Net unrealized gains
(losses)..................... (1,024,177) 216,285 (555,567) (979,019) 1,744,663 (541,372)
------------- ------------ ------------- ------------ ------------- ------------
Increase (Decrease) in net
assets from operations... $ (388,277) $ 794,835 $ 627,727 $ (169,191) $1,856,714 $1,127,433
------------- ------------ ------------- ------------ ------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................... $ 159,482 $1,440,848 $ 344,402 $3,046,502 $ 153,046 $1,471,282
Net transfers between
Sub-Accounts and Fixed
Account.................... 1,874,921 2,333,811 (84,421) 2,266,782 (119,373) 1,246,414
Withdrawals, surrenders,
annuitizations and contract
charges.................... (289,775) (1,525,871) (300,341) (1,309,324) (254,031) (917,266)
------------- ------------ ------------- ------------ ------------- ------------
Net accumulation
activity................. $1,744,628 $2,248,788 $ (40,360) $4,003,960 $ (220,358) $1,800,430
------------- ------------ ------------- ------------ ------------- ------------
Annuitization Activity:
Annuitizations.............. $ 8,929 $ (8,935) $ 17,726 $ 86,382 $ -- $ 54,124
Annuity payments and account
fees....................... (50) -- (22,765) (8,589) (3,610) (520)
Adjustments to annuity
reserve.................... 395 (83) 14,065 (1,717) (264) 2,259
------------- ------------ ------------- ------------ ------------- ------------
Net annuitization
activity................. $ 9,274 $ (9,018) $ 9,026 $ 76,076 $ (3,874) $ 55,863
------------- ------------ ------------- ------------ ------------- ------------
Increase (Decrease) in net
assets from contract owner
transactions................. $1,753,902 $2,239,770 $ (31,334) $4,080,036 $ (224,232) $1,856,293
------------- ------------ ------------- ------------ ------------- ------------
Increase (Decrease) in net
assets..................... $1,365,625 $3,034,605 $ 596,393 $3,910,845 $1,632,482 $2,983,726
NET ASSETS:
Beginning of period........... 12,591,885 9,557,280 14,756,549 10,845,704 12,708,079 9,724,353
------------- ------------ ------------- ------------ ------------- ------------
End of period................. $13,957,510 $12,591,885 $15,352,942 $14,756,549 $14,340,561 $12,708,079
------------- ------------ ------------- ------------ ------------- ------------
------------- ------------ ------------- ------------ ------------- ------------
</TABLE>
See notes to financial statements
10
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MIS NWD
Sub-Account MMS Sub-Account
-------------- Sub-Account --------------
Six Months ----------------------------- Six Months
Ended Six Months Year Ended Ended
June 30, Ended December 31, June 30,
1999(c) June 30, 1999 1998 1999(c)
-------------- ------------- ------------- --------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss).......... $ 2,849 $ 207,988 $ 392,475 $ 1,247
Net realized gains (losses)........... (496) -- -- 3,222
Net unrealized gains (losses)......... 23,938 -- -- 34,045
-------------- ------------- ------------- --------------
Increase (Decrease) in net assets
from operations.................. $ 26,291 $ 207,988 $ 392,475 $ 38,514
-------------- ------------- ------------- --------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 349,210 $ 2,774,070 $ 6,979,970 $ 400
Net transfers between Sub-Accounts
and Fixed Account.................. 316,358 3,455,430 4,354,504 333,273
Withdrawals, surrenders,
annuitizations and contract
charges............................ -- (844,296) (5,785,099) (15)
-------------- ------------- ------------- --------------
Net accumulation activity......... $ 665,568 $ 5,385,204 $ 5,549,375 $ 333,658
-------------- ------------- ------------- --------------
Annuitization Activity:
Annuitizations...................... $ -- $ 142,141 $ -- $ --
Annuity payments and account fees... -- (5,292) (2,231) --
Adjustments to annuity reserve...... -- (2,342) (6) --
-------------- ------------- ------------- --------------
Net annuitization activity........ $ -- $ 134,507 $ (2,237) $ --
-------------- ------------- ------------- --------------
Increase (Decrease) in net assets from
contract owner transactions.......... $ 665,568 $ 5,519,711 $ 5,547,138 $ 333,658
-------------- ------------- ------------- --------------
Increase (Decrease) in net assets... $ 691,859 $ 5,727,699 $ 5,939,613 $ 372,172
NET ASSETS:
Beginning of period................... -- 16,308,579 10,368,966 --
-------------- ------------- ------------- --------------
End of period......................... $ 691,859 $22,036,278 $16,308,579 $ 372,172
-------------- ------------- ------------- --------------
-------------- ------------- ------------- --------------
</TABLE>
(c) For the period April 26, 1999 (commencement of operations of Sub-Account)
through June 30, 1999.
See notes to financial statements
11
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RES RGS TRS
Sub-Account Sub-Account Sub-Account
----------------------------- ----------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31, Ended December 31,
June 30, 1999 1998 June 30, 1999 1998 June 30, 1999 1998
------------- ------------- ------------- ------------- ------------- -------------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)..... $ 1,113,487 $ 789,974 $ (11,556) $ (15,287) $ 8,145,695 $ 4,609,014
Net realized gains (losses)...... 370,945 868,151 68,361 20,804 365,878 968,898
Net unrealized gains (losses).... 1,778,516 3,827,961 223,309 313,342 (6,094,030) (735,171)
------------- ------------- ------------- ------------- ------------- -------------
Increase (Decrease) in net
assets from operations...... $ 3,262,948 $ 5,486,086 $ 280,114 $ 318,859 $ 2,417,543 $ 4,842,741
------------- ------------- ------------- ------------- ------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 1,369,659 $ 5,661,381 $ 230,964 $ 955,442 $ 1,273,504 $ 5,723,954
Net transfers between
Sub-Accounts and Fixed
Account....................... 1,480,042 8,373,302 832,450 1,012,621 (2,291,148) 7,589,931
Withdrawals, surrenders,
annuitizations and contract
charges....................... (853,375) (1,448,446) (108,299) (41,336) (1,695,672) (3,756,499)
------------- ------------- ------------- ------------- ------------- -------------
Net accumulation activity.... $ 1,996,326 $12,586,237 $ 955,115 $1,926,727 $(2,713,316) $ 9,557,386
------------- ------------- ------------- ------------- ------------- -------------
Annuitization Activity:
Annuitizations................. $ 17,754 $ -- $ 17,630 $ -- $ -- $ 395,341
Annuity payments and account
fees.......................... (100) -- (100) -- (62,150) (79,366)
Adjustments to annuity
reserve....................... 819 -- 788 -- (2,964) (7,297)
------------- ------------- ------------- ------------- ------------- -------------
Net annuitization activity... $ 18,473 $ -- $ 18,318 $ -- $ (65,114) $ 308,678
------------- ------------- ------------- ------------- ------------- -------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 2,014,799 $12,586,237 $ 973,433 $1,926,727 $(2,778,430) $ 9,866,064
------------- ------------- ------------- ------------- ------------- -------------
Increase (Decrease) in net
assets........................ $ 5,277,747 $18,072,323 $1,253,547 $2,245,586 $ (360,887) $14,708,805
NET ASSETS:
Beginning of period.............. 37,668,622 19,596,299 2,888,032 642,446 56,767,151 42,058,346
------------- ------------- ------------- ------------- ------------- -------------
End of period.................... $42,946,369 $37,668,622 $4,141,579 $2,888,032 $56,406,264 $56,767,151
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
See notes to financial statements
12
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GGS
UTS GAA Sub-Account
Sub-Account Sub-Account ---------------------------
----------------------------- ----------------------------- Six Months
Six Months Year Ended Six Months Year Ended Ended Year Ended
Ended December 31, Ended December 31, June 30, December 31,
June 30, 1999 1998 June 30, 1999 1998 1999 1998
------------- ------------- ------------- ------------- ------------ ------------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)..... $ 1,336,196 $ 701,567 $ 159,056 $ 175,045 $ 448,914 $ (3,839)
Net realized gains (losses)...... 103,071 245,135 2,946 1,766 18,887 11,823
Net unrealized gains (losses).... (360,840) 215,730 (66,486) (68,262) (831,516) 527,568
------------- ------------- ------------- ------------- ------------ ------------
Increase (Decrease) in net
assets from operations...... $ 1,078,427 $ 1,162,432 $ 95,516 $ 108,549 $ (363,715) $ 535,552
------------- ------------- ------------- ------------- ------------ ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 721,714 $ 3,379,684 $ 68,038 $ 451,961 $ 17,592 $ 98,948
Net transfers between
Sub-Accounts and Fixed
Account....................... 663,012 2,309,074 (16,772) 357,692 684,648 (43,239)
Withdrawals, surrenders,
annuitizations and contract
charges....................... (286,509) (626,782) (36,180) (149,424) (84,819) (640,532)
------------- ------------- ------------- ------------- ------------ ------------
Net accumulation activity.... $ 1,098,217 $ 5,061,976 $ 15,086 $ 660,229 $ 617,421 $ (584,823)
------------- ------------- ------------- ------------- ------------ ------------
Annuitization Activity:
Annuitizations................. $ 9,129 $ -- $ -- $ -- $ -- $ --
Annuity payments and account
fees.......................... (51) -- -- -- (1,102) (2,179)
Adjustments to annuity
reserve....................... 400 -- -- -- 24 (87)
------------- ------------- ------------- ------------- ------------ ------------
Net annuitization activity... $ 9,478 $ -- $ -- $ -- $ (1,078) $ (2,266)
------------- ------------- ------------- ------------- ------------ ------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 1,107,695 $ 5,061,976 $ 15,086 $ 660,229 $ 616,343 $ (587,089)
------------- ------------- ------------- ------------- ------------ ------------
Increase (Decrease) in net
assets........................ $ 2,186,122 $ 6,224,408 $ 110,602 $ 768,778 $ 252,628 $ (51,537)
NET ASSETS:
Beginning of period.............. 11,012,694 4,788,286 3,279,539 2,510,761 4,087,538 4,139,075
------------- ------------- ------------- ------------- ------------ ------------
End of period.................... $13,198,816 $11,012,694 $3,390,141 $3,279,539 $4,340,166 $4,087,538
------------- ------------- ------------- ------------- ------------ ------------
------------- ------------- ------------- ------------- ------------ ------------
</TABLE>
See notes to financial statements
13
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GGR GTR
Sub-Account Sub-Account
----------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1999 1998 June 30, 1999 1998
------------- ------------- ------------- -------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss).......... $ 401,026 $ 604,265 $ 332,895 $ 99,809
Net realized gains (losses)........... 140,397 394,360 24,386 77,786
Net unrealized gains (losses)......... 855,573 170,808 (408,586) 333,955
------------- ------------- ------------- -------------
Increase (Decrease) in net assets
from operations.................. $ 1,396,996 $ 1,169,433 $ (51,305) $ 511,550
------------- ------------- ------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 189,264 $ 560,743 $ 58,126 $ 557,044
Net transfers between Sub-Accounts
and Fixed Account.................. 772,258 424,047 234,589 1,590,561
Withdrawals, surrenders,
annuitizations and contract
charges............................ (124,918) (826,884) (82,148) (174,073)
------------- ------------- ------------- -------------
Net accumulation activity......... $ 836,604 $ 157,906 $ 210,567 $1,973,532
------------- ------------- ------------- -------------
Annuitization Activity:
Annuitizations...................... $ -- $ -- $ -- $ 58,314
Annuity payments and account fees... -- -- (3,363) (560)
Adjustments to annuity reserve...... -- -- 1,030 730
------------- ------------- ------------- -------------
Net annuitization activity........ $ -- $ -- $ (2,333) $ 58,484
------------- ------------- ------------- -------------
Increase (Decrease) in net assets from
contract owner transactions.......... $ 836,604 $ 157,906 $ 208,234 $2,032,016
------------- ------------- ------------- -------------
Increase (Decrease) in net assets... $ 2,233,600 $ 1,327,339 $ 156,929 $2,543,566
NET ASSETS:
Beginning of period................... 10,527,939 9,200,600 4,700,572 2,157,006
------------- ------------- ------------- -------------
End of period......................... $12,761,539 $10,527,939 $4,857,501 $4,700,572
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
See notes to financial statements
14
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life (N.Y.) Variable Account C (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 October 18, 1985 as a funding vehicle for the variable portion of
certain individual combination fixed/variable annuity contracts. Sale of the
Regatta-NY and Regatta Gold-NY contracts commenced on April 1, 1993 and August
1, 1996, respectively. 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 series of MFS/Sun Life Series
Trust (the "Series Trust") as selected by contract owners. The Series Trust is
an open-end management investment company registered under the Investment
Company Act of 1940. Massachusetts Financial Services Company ("MFS"), an
affiliate of Sun Life Assurance Company of Canada (U.S.), is the investment
adviser to the Series Trust.
(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 shares of the Series Trust are recorded at their net asset value.
Realized gains and losses on sales of shares of the Series Trust are determined
on the identified cost basis. Dividend income and capital gain distributions
received by the Sub-Accounts are reinvested in additional Series Trust 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.
15
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- continued
(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. These deductions are
transferred periodically to the Sponsor. Currently, the deduction is at an
effective annual rate of 1.25%.
Each year on the contract anniversary, an account administration fee ("Account
Fee") of $30 is deducted from each contract's accumulation account. After the
annuity commencement date the Account Fee is deducted pro rata from each
variable annuity payment made during the year. In addition, a deduction is made
from the Variable Account at the end of each valuation period (during both the
accumulation period and after annuity payments begin) at an effective annual
rate of 0.15% of the daily net assets of the Variable Account. These charges are
paid to the Sponsor to reimburse it for administrative expenses which exceed the
revenues received from the Account Fee.
The Sponsor does not deduct a sales charge from the purchase payments. However,
a withdrawal charge (contingent deferred sales charge) of up to 6% of certain
amounts withdrawn, when applicable, will be deducted to cover certain expenses
relating to the sale of the contracts. In no event shall the aggregate
withdrawal charges assessed exceed 9% of the purchase payment made under a
Regatta-NY contract or 6% of the aggregate purchase payments made under a
Regatta Gold-NY contract.
(4) ANNUITY RESERVES
Annuity reserves are calculated using the 1983 Individual Annuitant Mortality
Table and an assumed interest rate of 4% for Regatta-NY contracts and 3% for
Regatta Gold-NY contracts. Required adjustments to the reserves are accomplished
by transfers to or from the Sponsor.
16
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS
<TABLE>
<CAPTION>
Units Transferred
Between
Units Outstanding Sub-Accounts
Beginning of Period Units Purchased and Fixed Account
----------------------- ----------------------- ---------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended December Ended December Ended December
June 30, 31, June 30, 31, June 30, 31,
1999 1998 1999 1998 1999 1998
---------- ---------- ---------- ---------- ------------- -----------
MFS REGATTA
CONTRACTS:
-------------------------
<S> <C> <C> <C> <C> <C> <C>
CAS.......... 1,030,044 1,098,819 -- -- (51,754) 16,251
MIT.......... 759,522 806,893 -- -- 11,673 16,355
GSS.......... 516,775 617,817 -- -- 84,991 6,548
HYS.......... 299,433 340,853 -- -- (23,610) 10,788
MSS.......... 294,045 314,374 -- -- (5,316) 3,793
MMS.......... 529,219 540,785 -- -- 46,377 428,614
TRS.......... 1,320,198 1,439,364 -- -- 1,632 (6,574)
UTS.......... 88,196 103,362 -- -- 3,221 1,434
GGS.......... 219,014 277,498 -- -- 17,981 (17,719)
GGR.......... 327,055 384,999 -- -- 12,919 (16,241)
MFS REGATTA
GOLD CONTRACTS:
-------------------------
BDS(a)....... -- -- 1,425 -- 2,500 --
CAS.......... 1,387,198 933,956 105,793 377,035 (54,764) 155,695
COS.......... 245,193 61,777 15,832 103,389 44,559 85,059
MIT.......... 2,936,804 1,722,218 207,590 833,525 23,724 504,212
EGS.......... 1,482,470 966,583 74,575 324,632 73,078 255,069
EIS(b)....... -- -- 6,434 -- 1,504 --
FCE.......... 23,240 41,861 652 11,240 7,404 (28,912)
FCG.......... 272,201 188,749 3,248 32,884 (20,562) 64,726
FCI.......... 41,872 9,227 3,615 18,569 2,213 15,201
GSS.......... 483,528 168,798 13,882 125,717 63,532 199,497
HYS.......... 869,291 482,767 28,031 256,362 22,560 176,263
MSS.......... 401,019 251,868 9,027 98,329 (2,392) 80,721
MIS(c)....... -- -- 35,092 -- 31,878 --
MMS.......... 921,204 395,655 259,348 653,207 258,389 (65,544)
NWD(c)....... -- -- 38 -- 33,488 --
RES.......... 2,330,245 1,478,012 83,634 388,372 90,716 566,075
RGS.......... 222,849 59,221 17,085 81,967 63,461 85,163
TRS.......... 2,154,305 1,288,455 88,567 424,309 (155,627) 571,586
UTS.......... 529,135 187,310 40,999 214,542 33,693 144,840
GAA.......... 267,873 215,473 5,576 36,286 (1,384) 28,666
GGS.......... 90,226 73,436 1,708 9,445 38,377 17,520
GGR.......... 402,319 324,362 13,584 44,685 41,028 53,301
GTR.......... 334,013 181,210 4,266 43,452 17,225 122,655
<CAPTION>
Units Withdrawn,
Surrendered and Units Outstanding
Annuitized End of Period
------------------------- -------------------------
Six Months Year Ended Six Months Year Ended
Ended December Ended December
June 30, 31, June 30, 31,
1999 1998 1999 1998
----------- ----------- ----------- -----------
MFS REGATTA
CONTRACTS:
-------------
<S> <C> <C> <C> <C>
CAS.......... (24,589) (85,026) 953,701 1,030,044
MIT.......... (16,149) (63,726) 755,046 759,522
GSS.......... (11,730) (107,590) 590,036 516,775
HYS.......... (8,761) (52,208) 267,062 299,433
MSS.......... (6,981) (24,122) 281,748 294,045
MMS.......... (37,100) (440,180) 538,496 529,219
TRS.......... (46,994) (112,592) 1,274,836 1,320,198
UTS.......... (534) (16,600) 90,883 88,196
GGS.......... (5,063) (40,765) 231,932 219,014
GGR.......... (2,955) (41,703) 337,019 327,055
MFS REGATTA
GOLD CONTRACT
-------------
BDS(a)....... -- -- 3,925 --
CAS.......... (18,455) (79,488) 1,419,772 1,387,198
COS.......... (5,573) (5,032) 300,011 245,193
MIT.......... (41,212) (123,151) 3,126,906 2,936,804
EGS.......... (23,958) (63,814) 1,606,165 1,482,470
EIS(b)....... -- -- 7,938 --
FCE.......... (347) (949) 30,949 23,240
FCG.......... (2,326) (14,158) 252,561 272,201
FCI.......... (2,896) (1,125) 44,804 41,872
GSS.......... (11,702) (10,484) 549,240 483,528
HYS.......... (13,497) (46,101) 906,385 869,291
MSS.......... (5,343) (29,899) 402,311 401,019
MIS(c)....... -- -- 66,970 --
MMS.......... (42,114) (62,114) 1,396,827 921,204
NWD(c)....... 1 -- 33,527 --
RES.......... (52,172) (102,214) 2,452,423 2,330,245
RGS.......... (8,069) (3,502) 295,326 222,849
TRS.......... (54,173) (130,045) 2,033,072 2,154,305
UTS.......... (15,795) (17,557) 588,032 529,135
GAA.......... (2,937) (12,552) 269,128 267,873
GGS.......... (1,472) (10,175) 128,839 90,226
GGR.......... (5,448) (20,029) 451,483 402,319
GTR.......... (6,040) (13,304) 349,464 334,013
</TABLE>
(a) For the period May 27, 1999 (commencement of operations of Sub-Account)
through June 30, 1999.
(b) For the period May 7, 1999 (commencement of operations of Sub-Account)
through June 30, 1999.
(c) For the period April 26, 1999 (commencement of operations of Sub-Account)
through June 30, 1999.
17
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Contract Owners in Sun Life (N.Y.) Variable Account C
and the Board of Directors of Sun Life Insurance and Annuity Company of New
York:
We have audited the accompanying statement of condition of Bond Sub-Account,
Capital Appreciation Sub-Account, Capital Opportunities Sub-Account,
Massachusetts Investors Trust Sub-Account, Emerging Growth Sub-Account, Equity
Income Sub-Account, MFS/Foreign & Colonial Emerging Markets Equity Sub-Account,
International Growth Sub-Account, International Growth and Income Sub-Account,
Government Securities Sub-Account, High Yield Sub-Account, Managed Sectors
Sub-Account, Massachusetts Investors Growth Stock Sub-Account, Money Market
Sub-Account, New Discovery Sub-Account, Research Sub-Account, Research Growth
and Income Sub-Account, Total Return Sub-Account, Utilities Sub-Account, Global
Asset Allocation Sub-Account, Global Governments Sub-Account, Global Growth
Sub-Account, and Global Total Return Sub-Account of Sun Life (N.Y.) Variable
Account C (the "Sub-Accounts") as of June 30, 1999, the related statement of
operations for the six month period then ended and the statements of changes in
net assets for the six month period ended June 30, 1999 and the year ended
December 31, 1998. 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 at June 30, 1999 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, 1999, the
results of their operations and the changes in their net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 6, 1999
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This report is prepared for the general information of contract owners. It is
authorized for distribution to prospective purchasers only when preceded or
accompanied by an effective prospectus.
<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
80 Broad Street, New York, NY 10004
DIRECTORS AND OFFICERS
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, President and Director
JAMES A. McNULTY, III, Senior Vice President and
General Manager and Director
S. CAESAR RABOY, Director
RICHARD B. BAILEY, Director
M. COLYER CRUM, Director
DAVID D. HORN, Director
JOHN G. IRELAND, Director
GREGORY W. GEE, Director
DONALD B. HENDERSON, JR., Director
ANGUS A. MacNAUGHTON, Director
PETER R. O'FLINN, Director
FIORAVANTE G. PERROTTA, Director
RALPH F. PETERS, Director
FREDERICK B. WHITTEMORE, Director
PETER F. DEMUTH, Vice President and
Chief Counsel and Assistant Secretary
ELLEN B. KING, Secretary
ROBERT P. VROLYK, Vice President, Treasurer,
Controller and Actuary
JAMES M. A. ANDERSON, Vice President, Investments
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, MA 02481
LEGAL COUNSEL
Covington & Burling
1201 Pennsylvania Avenue, N.W.
P.O. Box 7566, Washington, D.C. 20044
AUDITORS
Deloitte & Touche LLP
200 Berkeley Street, Boston, MA 02116
[LOGO]
SEMI-ANNUAL REPORT, JUNE 30, 1999
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
RENY3-8/99 7M
