<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
122 E. 42nd Street, Suite 1900, New York, NY 10017
DIRECTORS AND OFFICERS
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, Vice Chairman and Director
JAMES A. McNULTY, III, President and Director
S. CAESAR RABOY, Director
RICHARD B. BAILEY, Director
DAVID D. HORN, Director
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
WILLIAM W. STINSON, Director
PETER F. DEMUTH, Vice President and
Chief Counsel and Assistant Secretary
ELLEN B. KING, Counsel and Secretary
ROBERT P. VROLYK, Vice President and
Actuary
DAVEY S. SCOON, Vice President, Finance,
Controller and Treasurer
RONALD J. FERNANDES, Vice President,
Retirement Products and Services
JAMES M.A. ANDERSON, Vice President, Investments
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, MA 02481
AUDITORS
Deloitte & Touche LLP
200 Berkeley Street, Boston, MA 02116
[LOGO]
SEMI-ANNUAL REPORT, JUNE 30, 2000
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
RENY3-8/00 7M
<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
---------------------------------- CHANGE
DECEMBER 31, 1999 JUNE 30, 2000 IN UNIT VALUE
------------------ -------------- -------------
<S> <C> <C> <C>
REGATTA - NY CONTRACTS:
Capital Appreciation Series........................ $34.0262 $35.9148 5.55%
Massachusetts Investors Trust Series............... 27.8818 27.8873 0.02
Government Securities Series....................... 12.9237 13.3782 3.52
High Yield Series.................................. 15.6326 15.5434 (0.57)
Managed Sectors Series............................. 39.8571 36.7889 (7.70)
Money Market Series................................ 12.3026 12.5575 2.07
Total Return Series................................ 19.1850 19.5925 2.12
Utilities Series................................... 29.4815 30.4431 3.26
Global Governments Series.......................... 13.0332 12.8484 (1.42)
Global Growth Series............................... 25.9348 25.5555 (1.46)
REGATTA GOLD - NY CONTRACTS:
Bond Series........................................ $ 9.8200 $10.0605 2.45%
Capital Appreciation Series........................ 22.6198 23.8753 5.55
Capital Opportunities Series....................... 19.7776 21.2072 7.23
Massachusetts Investors Trust Series............... 18.8640 18.8677 0.02
Emerging Growth Series............................. 29.0322 28.3571 (2.33)
Equity Income Series............................... 9.8814 10.5126 6.39
MFS/Foreign & Colonial Emerging Markets Equity
Series............................................ 9.0591 8.5565 (5.55)
International Growth Series........................ 12.5550 15.3336 22.13
International Growth and Income Series............. 14.8716 12.5939 (15.32)
Government Securities Series....................... 11.3761 11.7762 3.52
High Yield Series.................................. 12.3601 12.2896 (0.57)
Managed Sectors Series............................. 28.4991 26.3052 (7.70)
Massachusetts Investors Growth Stock Series........ 12.5684 12.9452 3.00
Money Market Series................................ 11.2115 11.4437 2.07
New Discovery Series............................... 16.0007 17.5067 9.41
Research Equity Series............................. 19.7914 20.9440 5.82
Research Growth and Income Series.................. 13.7803 13.8670 0.63
Strategic Growth Series............................ 10.0000* 10.2587 2.59
Total Return Series................................ 14.4646 14.7719 2.12
Utilities Series................................... 21.9857 22.7028 3.26
Global Asset Allocation Series..................... 14.2950 14.5794 1.99
Global Governments Series.......................... 10.6699 10.5185 (1.42)
Global Growth Series............................... 22.0864 21.7633 (1.46)
Global Total Return Series......................... 14.8545 15.0974 1.64
Research International Series...................... 13.3890 13.4499 0.45
Strategic Income Series............................ 10.1388 10.2421 1.02
</TABLE>
*Reflects unit value on date of commencement of operations.
1
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION
-- June 30, 2000
<TABLE>
<CAPTION>
ASSETS: Shares Cost Value
Investments in MFS/Sun Life Series Trust: ---------- ------------ ------------
<S> <C> <C> <C>
Bond Series (BDS)............................. 6,896 $ 70,341 $ 70,411
Capital Appreciation Series (CAS)............. 1,384,852 58,029,322 69,034,805
Capital Opportunities Series (COS)............ 427,472 8,539,246 10,047,998
Massachusetts Investors Trust Series (MIT).... 2,248,286 75,404,229 79,448,982
Emerging Growth Series (EGS).................. 1,405,048 36,431,712 50,066,925
Equity Income Series (EIS).................... 31,894 364,686 379,113
MFS/Foreign & Colonial Emerging Markets Equity
Series (FCE)................................. 17,010 181,784 184,746
International Growth Series (FCG)............. 259,077 3,181,690 3,625,169
International Growth and Income Series
(FCI)........................................ 96,821 1,125,456 1,255,921
Government Securities Series (GSS)............ 1,085,811 13,874,438 13,231,703
High Yield Series (HYS)....................... 1,854,993 16,935,299 15,196,617
Managed Sectors Series (MSS).................. 629,608 22,093,881 24,648,575
Massachusetts Investors Growth Stock Series
(MIS)........................................ 448,868 6,767,006 7,193,373
Money Market Series (MMS)..................... 12,292,589 12,292,589 12,292,589
New Discovery Series (NWD).................... 141,560 2,280,557 2,483,263
Research Series (RES)......................... 1,818,701 39,187,049 47,800,443
Research Growth and Income Series (RGS)....... 277,186 3,657,640 3,982,340
Strategic Growth Series (SGS)................. 785 9,989 10,260
Total Return Series (TRS)..................... 2,973,372 56,642,032 51,558,111
Utilities Series (UTS)........................ 966,574 16,733,180 18,477,338
Global Asset Allocation Series (GAA).......... 232,066 3,389,720 3,650,120
Global Governments Series (GGS)............... 356,014 3,839,045 3,472,753
Global Growth Series (GGR).................... 984,737 16,829,587 20,778,221
Global Total Return Series (GTR).............. 296,831 4,562,665 4,673,785
Research International Series (RSS)........... 52,198 711,528 728,505
Strategic Income Series (SIS)................. 29,765 299,984 297,141
------------ ------------
$403,434,655 $444,589,207
============
LIABILITY:
Payable to sponsor............................ (114,902)
------------
Net Assets................................ $444,474,305
============
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION
-- June 30, 2000 -- continued
<TABLE>
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C> <C>
Applicable to Owners of
Deferred Variable Annuity
Contracts Reserve
--------------------------------- for
Unit Variable
Units Value Value Annuities Total
--------- -------- ------------ ---------- ------------
Regatta-NY Contracts:
CAS............................ 916,209 $35.9148 $ 32,897,840 $ 132,348 $ 33,030,188
MIT............................ 727,815 27.8873 20,294,720 151,477 20,446,197
GSS............................ 558,505 13.3782 7,471,548 67,936 7,539,484
HYS............................ 230,302 15.5434 3,593,941 9,326 3,603,267
MSS............................ 291,687 36.7889 10,730,863 -- 10,730,863
MMS............................ 501,894 12.5575 6,297,217 126,556 6,423,773
TRS............................ 1,122,262 19.5925 21,984,039 569,849 22,553,888
UTS............................ 97,812 30.4431 2,978,645 75,477 3,054,122
GGS............................ 191,244 12.8484 2,460,010 -- 2,460,010
GGR............................ 352,312 25.5555 9,004,677 66,877 9,071,554
------------ ---------- ------------
$117,713,500 $1,199,846 $118,913,346
------------ ---------- ------------
Regatta Gold-NY Contracts:
BDS............................ 6,997 $10.0605 $ 70,411 $ -- $ 70,411
CAS............................ 1,506,912 23.8753 35,979,043 8,829 35,987,872
COS............................ 473,881 21.2072 10,047,998 -- 10,047,998
MIT............................ 3,093,200 18.8677 58,361,499 608,775 58,970,274
EGS............................ 1,758,651 28.3571 49,869,087 195,836 50,064,923
EIS............................ 36,058 10.5126 379,113 -- 379,113
FCE............................ 21,579 8.5565 184,746 -- 184,746
FCG............................ 233,293 15.3336 3,577,271 48,486 3,625,757
FCI............................ 98,848 12.5939 1,244,934 11,425 1,256,359
GSS............................ 482,476 11.7762 5,680,612 8,955 5,689,567
HYS............................ 938,264 12.2896 11,538,832 63,003 11,601,835
MSS............................ 525,887 26.3052 13,833,711 85,178 13,918,889
MIS............................ 540,329 12.9452 6,993,824 196,554 7,190,378
MMS............................ 512,327 11.4437 5,865,357 -- 5,865,357
NWD............................ 138,953 17.5067 2,432,779 48,902 2,481,681
RES............................ 2,281,224 20.9440 47,779,004 22,279 47,801,283
RGS............................ 285,233 13.8670 3,965,135 17,879 3,983,014
SGS............................ 1,000 10.2587 10,260 -- 10,260
TRS............................ 1,925,248 14.7719 28,429,027 515,513 28,944,540
UTS............................ 674,417 22.7028 15,333,454 86,644 15,420,098
GAA............................ 250,050 14.5794 3,650,120 -- 3,650,120
GGS............................ 96,203 10.5185 1,012,441 -- 1,012,441
GGR............................ 537,338 21.7633 11,695,458 8,346 11,703,804
GTR............................ 305,929 15.0974 4,618,887 55,706 4,674,593
RSS............................ 54,162 13.4499 728,505 -- 728,505
SIS............................ 29,011 10.2421 297,141 -- 297,141
------------ ---------- ------------
$323,578,649 $1,982,310 $325,560,959
------------ ---------- ------------
Net Assets...................................... $441,292,149 $3,182,156 $444,474,305
============ ========== ============
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS
-- Six Months Ended June 30, 2000
<TABLE>
<CAPTION>
BDS CAS COS MIT EGS
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............... $ 1,086 $ 8,562,279 $1,035,026 $ 5,939,220 $ 4,973,543
Mortality and expense risk charges.... (172) (417,341) (58,155) (488,870) (321,861)
Administrative charges................ (21) (50,081) (6,979) (58,664) (38,623)
-------- ----------- ---------- ----------- ------------
Net investment income (loss)...... $ 893 $ 8,094,857 $ 969,892 $ 5,391,686 $ 4,613,059
-------- ----------- ---------- ----------- ------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 65,791 $ 8,793,581 $1,282,424 $ 8,799,052 $ 8,079,609
Cost of investments sold............ (65,665) (6,181,279) (813,242) (7,403,919) (3,470,648)
-------- ----------- ---------- ----------- ------------
Net realized gains (losses)....... $ 126 $ 2,612,302 $ 469,182 $ 1,395,133 $ 4,608,961
-------- ----------- ---------- ----------- ------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 70 $11,005,483 $1,508,752 $ 4,044,753 $ 13,635,213
Beginning of period................. 36 18,216,011 2,373,799 10,957,132 24,375,559
-------- ----------- ---------- ----------- ------------
Change in unrealized appreciation
(depreciation)................... $ 34 $(7,210,528) $ (865,047) $(6,912,379) $(10,740,346)
-------- ----------- ---------- ----------- ------------
Realized and unrealized gains
(losses)....................... $ 160 $(4,598,226) $ (395,865) $(5,517,246) $ (6,131,385)
-------- ----------- ---------- ----------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ 1,053 $ 3,496,631 $ 574,027 $ (125,560) $ (1,518,326)
======== =========== ========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
EIS FCE FCG FCI GSS
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............... $ 3,461 $ 23 $ 343,495 $ 21,822 $ 808,721
Mortality and expense risk charges.... (1,847) (1,520) (21,228) (6,139) (84,937)
Administrative charges................ (222) (182) (2,547) (737) (10,192)
--------- --------- --------- -------- -----------
Net investment income (loss)...... $ 1,392 $ (1,679) $ 319,720 $ 14,946 $ 713,592
--------- --------- --------- -------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 170,144 $ 265,399 $ 343,854 $ 75,690 $ 2,963,445
Cost of investments sold............ (161,012) (220,975) (260,923) (60,647) (3,013,282)
--------- --------- --------- -------- -----------
Net realized gains (losses)....... $ 9,132 $ 44,424 $ 82,931 $ 15,043 $ (49,837)
--------- --------- --------- -------- -----------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 14,427 $ 2,962 $ 443,479 $130,465 $ (642,735)
Beginning of period................. 1,892 60,846 743,681 139,979 (468,481)
--------- --------- --------- -------- -----------
Change in unrealized appreciation
(depreciation)................... $ 12,535 $ (57,884) $(300,202) $ (9,514) $ (174,254)
--------- --------- --------- -------- -----------
Realized and unrealized gains
(losses)....................... $ 21,667 $ (13,460) $(217,271) $ 5,529 $ (224,091)
--------- --------- --------- -------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ 23,059 $ (15,139) $ 102,449 $ 20,475 $ 489,501
========= ========= ========= ======== ===========
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS
-- Six Months Ended June 30, 2000 -- continued
<TABLE>
<CAPTION>
HYS MSS MIS MMS NWD
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............... $1,416,461 $ 4,725,617 $ 261,105 $ 382,133 $ 127,103
Mortality and expense risk charges.... (95,611) (162,415) (33,718) (85,821) (11,192)
Administrative charges................ (11,473) (19,490) (4,046) (10,299) (1,343)
----------- ----------- --------- ------------ ---------
Net investment income (loss)...... $1,309,377 $ 4,543,712 $ 223,341 $ 286,013 $ 114,568
----------- ----------- --------- ------------ ---------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $2,258,128 $ 3,563,064 $ 304,353 $ 22,370,358 $ 288,722
Cost of investments sold............ (2,449,285) (2,189,793) (236,168) (22,370,358) (172,638)
----------- ----------- --------- ------------ ---------
Net realized gains (losses)....... $ (191,157) $ 1,373,271 $ 68,185 $ -- $ 116,084
----------- ----------- --------- ------------ ---------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $(1,738,682) $ 2,554,694 $ 426,367 $ -- $ 202,706
Beginning of period................. (534,885) 11,084,433 576,430 -- 330,852
----------- ----------- --------- ------------ ---------
Change in unrealized appreciation
(depreciation)................... $(1,203,797) $(8,529,739) $(150,063) $ -- $(128,146)
----------- ----------- --------- ------------ ---------
Realized and unrealized gains
(losses)....................... $(1,394,954) $(7,156,468) $ (81,878) $ -- $ (12,062)
----------- ----------- --------- ------------ ---------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ (85,577) $(2,612,756) $ 141,463 $ 286,013 $ 102,506
=========== =========== ========= ============ =========
</TABLE>
<TABLE>
<CAPTION>
RES RGS SGS TRS UTS
Sub-Account Sub-Account Sub-Account(a) Sub-Account Sub-Account
----------- ----------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 4,941,583 $ 68,786 $-- $ 5,249,851 $ 1,812,433
Mortality and expense risk charges.... (289,450) (23,628) (10) (317,309) (111,712)
Administrative charges................ (34,734) (2,835) (1) (38,077) (13,405)
----------- -------- ------- ----------- -----------
Net investment income (loss)...... $ 4,617,399 $ 42,323 $ (11) $ 4,894,465 $ 1,687,316
----------- -------- ------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 2,951,752 $415,155 $ 8,894 $ 8,008,227 $ 804,464
Cost of investments sold............ (1,952,904) (363,574) (8,825) (8,518,948) (576,560)
----------- -------- ------- ----------- -----------
Net realized gains (losses)....... $ 998,848 $ 51,581 $ 69 $ (510,721) $ 227,904
----------- -------- ------- ----------- -----------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 8,613,394 $324,700 $ 271 $(5,083,921) $ 1,744,158
Beginning of period................. 11,588,184 389,342 -- (1,590,588) 3,151,974
----------- -------- ------- ----------- -----------
Change in unrealized appreciation
(depreciation)................... $(2,974,790) $(64,642) $ 271 $(3,493,333) $(1,407,816)
----------- -------- ------- ----------- -----------
Realized and unrealized gains
(losses)....................... $(1,975,942) $(13,061) $ 340 $(4,004,054) $(1,179,912)
----------- -------- ------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ 2,641,457 $ 29,262 $ 329 $ 890,411 $ 507,404
=========== ======== ======= =========== ===========
</TABLE>
(a) For the period January 1, 2000 (commencement of operations) through
June 30, 2000.
See notes to financial statements
5
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS
-- Six Months Ended June 30, 2000 -- continued
<TABLE>
<CAPTION>
GAA GGS GGR GTR RSS SIS
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............... $ 190,962 $ 143,740 $3,050,314 $ 339,408 $ 35,444 $10,310
Mortality and expense risk charges.... (22,455) (21,983) (127,530) (27,723) (3,605) (1,538)
Administrative charges................ (2,695) (2,638) (15,304) (3,327) (433) (185)
--------- --------- ----------- --------- --------- -------
Net investment income (loss)...... $ 165,812 $ 119,119 $2,907,480 $ 308,358 $ 31,406 $ 8,587
--------- --------- ----------- --------- --------- -------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 256,693 $ 630,230 $1,200,597 $ 273,176 $ 191,040 $ 2,049
Cost of investments sold............ (230,550) (739,572) (690,273) (250,951) (162,587) (2,055)
--------- --------- ----------- --------- --------- -------
Net realized gains (losses)....... $ 26,143 $(109,342) $ 510,324 $ 22,225 $ 28,453 $ (6)
--------- --------- ----------- --------- --------- -------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 260,400 $(366,292) $3,948,634 $ 111,120 $ 16,977 $(2,843)
Beginning of period................. 387,442 (311,489) 7,697,264 369,215 60,637 3,024
--------- --------- ----------- --------- --------- -------
Change in unrealized appreciation
(depreciation)................... $(127,042) $ (54,803) $(3,748,630) $(258,095) $ (43,660) $(5,867)
--------- --------- ----------- --------- --------- -------
Realized and unrealized gains
(losses)....................... $(100,899) $(164,145) $(3,238,306) $(235,870) $ (15,207) $(5,873)
--------- --------- ----------- --------- --------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ 64,913 $ (45,026) $ (330,826) $ 72,488 $ 16,199 $ 2,714
========= ========= =========== ========= ========= =======
</TABLE>
See notes to financial statements
6
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BDS CAS COS
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Six Six
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(a) 2000 1999 2000 1999
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 893 $ (218) $ 8,094,857 $ 5,062,542 $ 969,892 $ 30,887
Net realized gains (losses)........... 126 (547) 2,612,302 2,123,016 469,182 121,135
Net unrealized gains (losses)......... 34 36 (7,210,528) 8,929,307 (865,047) 2,048,125
------- ------- ----------- ----------- ----------- ----------
Increase (Decrease) in net assets
from operations.................. $ 1,053 $ (729) $ 3,496,631 $16,114,865 $ 574,027 $2,200,147
------- ------- ----------- ----------- ----------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $38,711 $16,159 $ 1,156,067 $ 3,420,550 $ 474,851 $ 843,965
Net transfers between Sub-Accounts
and Fixed Account.................. 7,733 7,594 (1,147,490) 855,474 857,348 2,140,661
Withdrawals, surrenders,
annuitizations and contract
charges............................ (105) (5) (3,131,735) (2,622,533) (237,993) (134,822)
------- ------- ----------- ----------- ----------- ----------
Net accumulation activity......... $46,339 $23,748 $(3,123,158) $ 1,653,491 $ 1,094,206 $2,849,804
------- ------- ----------- ----------- ----------- ----------
Annuitization Activity:
Annuitizations...................... $-- $-- $ 9,269 $ -- $ -- $ --
Annuity payments and account fees... -- -- (19,200) (34,018) -- --
Adjustments to annuity reserve...... -- -- (744) (3,331) -- --
------- ------- ----------- ----------- ----------- ----------
Net annuitization activity........ $-- $-- $ (10,675) $ (37,349) $ -- $ --
------- ------- ----------- ----------- ----------- ----------
Increase (Decrease) in net assets from
contract owner transactions.......... $46,339 $23,748 $(3,133,833) $ 1,616,142 $ 1,094,206 $2,849,804
------- ------- ----------- ----------- ----------- ----------
Increase (Decrease) in net assets... $47,392 $23,019 $ 362,798 $17,731,007 $ 1,668,233 $5,049,951
NET ASSETS:
Beginning of period................... 23,019 -- 68,655,262 50,924,255 8,379,765 3,329,814
------- ------- ----------- ----------- ----------- ----------
End of period......................... $70,411 $23,019 $69,018,060 $68,655,262 $10,047,998 $8,379,765
======= ======= =========== =========== =========== ==========
</TABLE>
(a) For the period May 27, 1999 (commencement of operations) through
December 31, 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 EGS EIS
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Six Six
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999(b)
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 5,391,686 $ 4,890,263 $ 4,613,059 $ 18,486 $ 1,392 $ (1,118)
Net realized gains (losses)........... 1,395,133 2,460,538 4,608,961 1,609,849 9,132 (25)
Net unrealized gains (losses)......... (6,912,379) (3,031,771) (10,740,346) 18,929,458 12,535 1,892
----------- ----------- ----------- ----------- -------- --------
Increase (Decrease) in net assets
from operations.................. $ (125,560) $ 4,319,030 $(1,518,326) $20,557,793 $ 23,059 $ 749
----------- ----------- ----------- ----------- -------- --------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 1,449,621 $ 6,834,904 $ 1,318,315 $ 2,616,690 $ 24,843 $151,100
Net transfers between Sub-Accounts
and Fixed Account.................. (3,115,923) 2,960,318 6,144,613 1,809,663 104,129 83,765
Withdrawals, surrenders,
annuitizations and contract
charges............................ (2,839,531) (3,220,067) (4,686,937) (1,197,519) (8,230) (302)
----------- ----------- ----------- ----------- -------- --------
Net accumulation activity......... $(4,505,833) $ 6,575,155 $ 2,775,991 $ 3,228,834 $120,742 $234,563
----------- ----------- ----------- ----------- -------- --------
Annuitization Activity:
Annuitizations...................... $ 67,578 $ 304,547 $ 52,612 $ 157,333 $ -- $--
Annuity payments and account fees... (43,892) (45,178) (9,598) (391) -- --
Adjustments to annuity reserve...... (4,935) (5,651) (2,562) 560 -- --
----------- ----------- ----------- ----------- -------- --------
Net annuitization activity........ $ 18,751 $ 253,718 $ 40,452 $ 157,502 $ -- $--
----------- ----------- ----------- ----------- -------- --------
Increase (Decrease) in net assets from
contract owner transactions.......... $(4,487,082) $ 6,828,873 $ 2,816,443 $ 3,386,336 $120,742 $234,563
----------- ----------- ----------- ----------- -------- --------
Increase (Decrease) in net assets... $(4,612,642) $11,147,903 $ 1,298,117 $23,944,129 $143,801 $235,312
NET ASSETS:
Beginning of period................... 84,029,113 72,881,210 48,766,806 24,822,677 235,312 --
----------- ----------- ----------- ----------- -------- --------
End of period......................... $79,416,471 $84,029,113 $50,064,923 $48,766,806 $379,113 $235,312
=========== =========== =========== =========== ======== ========
</TABLE>
(b) For the period May 7, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements
8
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
FCE FCG FCI
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Six Six
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (1,679) $ (2,671) $ 319,720 $ 55,391 $ 14,946 $ (3,998)
Net realized gains (losses)........... 44,424 (9,723) 82,931 136,713 15,043 1,750
Net unrealized gains (losses)......... (57,884) 87,017 (300,202) 298,397 (9,514) 160,416
-------- -------- ---------- ---------- ---------- --------
Increase (Decrease) in net assets
from operations.................. $(15,139) $ 74,623 $ 102,449 $ 490,501 $ 20,475 $158,168
-------- -------- ---------- ---------- ---------- --------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 2,796 $ 22,461 $ 17,976 $ 87,199 $ 220,437 $ 71,687
Net transfers between Sub-Accounts
and Fixed Account.................. (38,758) 28,083 (60,975) (346,722) 352,515 86,593
Withdrawals, surrenders,
annuitizations and contract
charges............................ (25,055) (4,298) (92,143) (72,236) (26,791) (29,465)
-------- -------- ---------- ---------- ---------- --------
Net accumulation activity......... $(61,017) $ 46,246 $ (135,142) $ (331,759) $ 546,161 $128,815
-------- -------- ---------- ---------- ---------- --------
Annuitization Activity:
Annuitizations...................... $ -- $-- $ -- $ -- $ -- $ 8,601
Annuity payments and account fees... -- -- (514) -- (375) (365)
Adjustments to annuity reserve...... -- -- 118 -- 438 470
-------- -------- ---------- ---------- ---------- --------
Net annuitization activity........ $ -- $-- $ (396) $ -- $ 63 $ 8,706
-------- -------- ---------- ---------- ---------- --------
Increase (Decrease) in net assets from
contract owner transactions.......... $(61,017) $ 46,246 $ (135,538) $ (331,759) $ 546,224 $137,521
-------- -------- ---------- ---------- ---------- --------
Increase (Decrease) in net assets... $(76,156) $120,869 $ (33,089) $ 158,742 $ 566,699 $295,689
NET ASSETS:
Beginning of period................... 260,902 140,033 3,658,846 3,500,104 689,660 393,971
-------- -------- ---------- ---------- ---------- --------
End of period......................... $184,746 $260,902 $3,625,757 $3,658,846 $1,256,359 $689,660
======== ======== ========== ========== ========== ========
</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 Six Six
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 713,592 $ 509,121 $ 1,309,377 $ 1,052,468 $ 4,543,712 $ (206,735)
Net realized gains (losses)........... (49,837) (19,388) (191,157) (85,942) 1,373,271 463,826
Net unrealized gains (losses)......... (174,254) (948,831) (1,203,797) (159,996) (8,529,739) 10,581,213
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets
from operations.................. $ 489,501 $ (459,098) $ (85,577) $ 806,530 $(2,612,756) $10,838,304
----------- ----------- ----------- ----------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 93,093 $ 396,896 $ 551,466 $ 897,338 $ 609,309 $ 693,821
Net transfers between Sub-Accounts
and Fixed Account.................. (991,307) 2,214,722 (1,098,902) 757,430 2,274,315 1,306,321
Withdrawals, surrenders,
annuitizations and contract
charges............................ (517,068) (663,475) (567,243) (830,606) (599,178) (553,762)
----------- ----------- ----------- ----------- ----------- -----------
Net accumulation activity......... $(1,415,282) $ 1,948,143 $(1,114,679) $ 824,162 $ 2,284,446 $ 1,446,380
----------- ----------- ----------- ----------- ----------- -----------
Annuitization Activity:
Annuitizations...................... $ -- $ 80,761 $ -- $ 49,893 $ -- $ --
Annuity payments and account fees... (2,933) (1,683) (9,960) (32,097) (5,984) (7,635)
Adjustments to annuity reserve...... (524) (1,719) (1,022) 11,303 (1,034) (48)
----------- ----------- ----------- ----------- ----------- -----------
Net annuitization activity........ $ (3,457) $ 77,359 $ (10,982) $ 29,099 $ (7,018) $ (7,683)
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets from
contract owner transactions.......... $(1,418,739) $ 2,025,502 $(1,125,661) $ 853,261 $ 2,277,428 $ 1,438,697
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets... $ (929,238) $ 1,566,404 $(1,211,238) $ 1,659,791 $ (335,328) $12,277,001
NET ASSETS:
Beginning of period................... 14,158,289 12,591,885 16,416,340 14,756,549 24,985,080 12,708,079
----------- ----------- ----------- ----------- ----------- -----------
End of period......................... $13,229,051 $14,158,289 $15,205,102 $16,416,340 $24,649,752 $24,985,080
=========== =========== =========== =========== =========== ===========
</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 MMS NWD
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Six Six
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999(c) 2000 1999 2000 1999(c)
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 223,341 $ (9,041) $ 286,013 $ 449,101 $ 114,568 $ (2,495)
Net realized gains (losses)........... 68,185 42,562 -- -- 116,084 4,180
Net unrealized gains (losses)......... (150,063) 576,430 -- -- (128,146) 330,852
---------- ---------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets
from operations.................. $ 141,463 $ 609,951 $ 286,013 $ 449,101 $ 102,506 $ 332,537
---------- ---------- ----------- ----------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $1,058,855 $1,545,594 $ 1,200,356 $ 4,578,279 $ 348,954 $ 97,352
Net transfers between Sub-Accounts
and Fixed Account.................. 2,420,040 1,456,383 (235,712) (5,081,749) 936,377 686,241
Withdrawals, surrenders,
annuitizations and contract
charges............................ (85,499) (150,410) (3,401,323) (1,932,080) (72,001) (22)
---------- ---------- ----------- ----------- ---------- ----------
Net accumulation activity......... $3,393,396 $2,851,567 $(2,436,679) $(2,435,550) $1,213,330 $ 783,571
---------- ---------- ----------- ----------- ---------- ----------
Annuitization Activity:
Annuitizations...................... $ 61,496 $ 144,646 $ -- $ 142,142 $ 51,873 $ --
Annuity payments and account fees... (9,146) -- (7,900) (13,200) (554) --
Adjustments to annuity reserve...... (2,929) (66) (466) (2,910) (1,582) --
---------- ---------- ----------- ----------- ---------- ----------
Net annuitization activity........ $ 49,421 $ 144,580 $ (8,366) $ 126,032 $ 49,737 $ --
---------- ---------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets from
contract owner transactions.......... $3,442,817 $2,996,147 $(2,445,045) $(2,309,518) $1,263,067 $ 783,571
---------- ---------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets... $3,584,280 $3,606,098 $(2,159,032) $(1,860,417) $1,365,573 $1,116,108
NET ASSETS:
Beginning of period................... 3,606,098 -- 14,448,162 16,308,579 1,116,108 --
---------- ---------- ----------- ----------- ---------- ----------
End of period......................... $7,190,378 $3,606,098 $12,289,130 $14,448,162 $2,481,681 $1,116,108
========== ========== =========== =========== ========== ==========
</TABLE>
(c) For the period April 26, 1999 (commencement of operations) through
December 31, 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 SGS
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- ------------
Six Six Six
Months Ended Year Ended Months Ended Year Ended Months Ended
June 30, December 31, June 30, December 31, June 30,
2000 1999 2000 1999 2000(d)
------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 4,617,399 $ 821,260 $ 42,323 $ (40,465) $ (11)
Net realized gains (losses)........... 998,848 1,471,067 51,581 206,592 69
Net unrealized gains (losses)......... (2,974,790) 6,195,085 (64,642) 48,849 271
----------- ----------- ---------- ---------- -------
Increase (Decrease) in net assets
from operations.................. $ 2,641,457 $ 8,487,412 $ 29,262 $ 214,976 $ 329
----------- ----------- ---------- ---------- -------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 664,827 $ 2,291,829 $ 132,763 $ 609,314 $ 9,931
Net transfers between Sub-Accounts
and Fixed Account.................. 141,623 (693,664) (44,291) 344,254 --
Withdrawals, surrenders,
annuitizations and contract
charges............................ (1,600,059) (1,817,915) (64,990) (143,333) --
----------- ----------- ---------- ---------- -------
Net accumulation activity......... $ (793,609) $ (219,750) $ 23,482 $ 810,235 $ 9,931
----------- ----------- ---------- ---------- -------
Annuitization Activity:
Annuitizations...................... $ -- $ 17,754 $ -- $ 17,630 $--
Annuity payments and account fees... (721) (722) (587) (690) --
Adjustments to annuity reserve...... (15) 855 (47) 721 --
----------- ----------- ---------- ---------- -------
Net annuitization activity........ $ (736) $ 17,887 $ (634) $ 17,661 $--
----------- ----------- ---------- ---------- -------
Increase (Decrease) in net assets from
contract owner transactions.......... $ (794,345) $ (201,863) $ 22,848 $ 827,896 $ 9,931
----------- ----------- ---------- ---------- -------
Increase (Decrease) in net assets... $ 1,847,112 $ 8,285,549 $ 52,110 $1,042,872 $10,260
NET ASSETS:
Beginning of period................... 45,954,171 37,668,622 3,930,904 2,888,032 --
----------- ----------- ---------- ---------- -------
End of period......................... $47,801,283 $45,954,171 $3,983,014 $3,930,904 $10,260
=========== =========== ========== ========== =======
</TABLE>
(d) For the period January 1, 2000 (commencement of operations) through
June 30, 2000.
See notes to financial statements
12
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
TRS UTS GAA
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Six Six
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 4,894,465 $ 7,746,171 $ 1,687,316 $ 1,237,438 $ 165,812 $ 135,245
Net realized gains (losses)........... (510,721) (181,703) 227,904 291,350 26,143 7,500
Net unrealized gains (losses)......... (3,493,333) (6,794,002) (1,407,816) 2,126,467 (127,042) 399,246
----------- ----------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets
from operations.................. $ 890,411 $ 770,466 $ 507,404 $ 3,655,255 $ 64,913 $ 541,991
----------- ----------- ----------- ----------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 589,775 $ 2,858,711 $ 575,987 $ 1,363,693 $ 29,552 $ 129,985
Net transfers between Sub-Accounts
and Fixed Account.................. (4,168,763) 74,433 1,206,715 1,025,946 (41,408) (122,538)
Withdrawals, surrenders,
annuitizations and contract
charges............................ (2,146,125) (4,105,250) (386,301) (619,970) (121,369) (110,545)
----------- ----------- ----------- ----------- ---------- ----------
Net accumulation activity......... $(5,725,113) $(1,172,106) $ 1,396,401 $ 1,769,669 $ (133,225) $ (103,098)
----------- ----------- ----------- ----------- ---------- ----------
Annuitization Activity:
Annuitizations...................... $ -- $ 176,608 $ -- $ 152,945 $ -- $ --
Annuity payments and account fees... (71,056) (130,587) (12,984) (4,046) -- --
Adjustments to annuity reserve...... (10,000) 2,654 (1,083) (2,035) -- --
----------- ----------- ----------- ----------- ---------- ----------
Net annuitization activity........ $ (81,056) $ 48,675 $ (14,067) $ 146,864 $ -- $ --
----------- ----------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets from
contract owner transactions.......... $(5,806,169) $(1,123,431) $ 1,382,334 $ 1,916,533 $ (133,225) $ (103,098)
----------- ----------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets... $(4,915,758) $ (352,965) $ 1,889,738 $ 5,571,788 $ (68,312) $ 438,893
NET ASSETS:
Beginning of period................... 56,414,186 56,767,151 16,584,482 11,012,694 3,718,432 3,279,539
----------- ----------- ----------- ----------- ---------- ----------
End of period......................... $51,498,428 $56,414,186 $18,474,220 $16,584,482 $3,650,120 $3,718,432
=========== =========== =========== =========== ========== ==========
</TABLE>
See notes to financial statements
13
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GGS GGR GTR
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Six Six
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 119,119 $ 460,756 $ 2,907,480 $ 303,340 $ 308,358 $ 299,879
Net realized gains (losses)........... (109,342) (122,695) 510,324 452,605 22,225 100,881
Net unrealized gains (losses)......... (54,803) (633,342) (3,748,630) 6,692,595 (258,095) (86,257)
---------- ---------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets
from operations.................. $ (45,026) $ (295,281) $ (330,826) $ 7,448,540 $ 72,488 $ 314,503
---------- ---------- ----------- ----------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 22,717 $ 65,900 $ 299,143 $ 480,062 $ 63,782 $ 206,272
Net transfers between Sub-Accounts
and Fixed Account.................. 176,561 (246,018) 1,411,949 1,749,618 (57,526) (375,311)
Withdrawals, surrenders,
annuitizations and contract
charges............................ (69,224) (223,096) (416,194) (448,581) (69,799) (170,240)
---------- ---------- ----------- ----------- ---------- ----------
Net accumulation activity......... $ 130,054 $ (403,214) $ 1,294,898 $ 1,781,099 $ (63,543) $ (339,279)
---------- ---------- ----------- ----------- ---------- ----------
Annuitization Activity:
Annuitizations...................... $ -- $ -- $ 9,592 $ 50,832 $ -- $ --
Annuity payments and account fees... -- (1,638) (2,832) (1,021) (3,503) (6,721)
Adjustments to annuity reserve...... 2 16 (720) (2,143) (530) 606
---------- ---------- ----------- ----------- ---------- ----------
Net annuitization activity........ $ 2 $ (1,622) $ 6,040 $ 47,668 $ (4,033) $ (6,115)
---------- ---------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets from
contract owner transactions.......... $ 130,056 $ (404,836) $ 1,300,938 $ 1,828,767 $ (67,576) $ (345,394)
---------- ---------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets... $ 85,030 $ (700,117) $ 970,112 $ 9,277,307 $ 4,912 $ (30,891)
NET ASSETS:
Beginning of period................... 3,387,421 4,087,538 19,805,246 10,527,939 4,669,681 4,700,572
---------- ---------- ----------- ----------- ---------- ----------
End of period......................... $3,472,451 $3,387,421 $20,775,358 $19,805,246 $4,674,593 $4,669,681
========== ========== =========== =========== ========== ==========
</TABLE>
See notes to financial statements
14
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RSS SIS
Sub-Account Sub-Account
-------------------------- ---------------------------
Six Six
Months Ended Year Ended Months Ended Year Ended
June 30, December 31, June 30, December 31,
2000 1999(e) 2000 1999(f)
------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 31,406 $ (716) $ 8,587 $ (657)
Net realized gains (losses)........... 28,453 840 (6) 3
Net unrealized gains (losses)......... (43,660) 60,637 (5,867) 3,024
-------- -------- -------- --------
Increase (Decrease) in net assets
from operations.................. $ 16,199 $ 60,761 $ 2,714 $ 2,370
-------- -------- -------- --------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $164,808 $ 45,451 $ 25,315 $240,741
Net transfers between Sub-Accounts
and Fixed Account.................. 243,023 205,489 26,346 --
Withdrawals, surrenders,
annuitizations and contract
charges............................ (6,326) (1,620) (345) --
-------- -------- -------- --------
Net accumulation activity......... $401,505 $249,320 $ 51,316 $240,741
-------- -------- -------- --------
Annuitization Activity:
Annuitizations...................... $ -- $-- $ -- $ --
Annuity payments and account fees... -- -- -- --
Adjustments to annuity reserve...... -- -- -- --
-------- -------- -------- --------
Net annuitization activity........ $ -- $-- $ -- $ --
-------- -------- -------- --------
Increase (Decrease) in net assets from
contract owner transactions.......... $401,505 $249,320 $ 51,316 $240,741
-------- -------- -------- --------
Increase (Decrease) in net assets... $417,704 $310,081 $ 54,030 $243,111
NET ASSETS:
Beginning of period................... 310,801 -- 243,111 --
-------- -------- -------- --------
End of period......................... $728,505 $310,801 $297,141 $243,111
======== ======== ======== ========
</TABLE>
(e) For the period August 2, 1999 (commencement of operations) through
December 31, 1999.
(f) For the period September 10, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements
15
<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 accounting principles
generally accepted in the United States of America 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.
16
<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.
17
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS
<TABLE>
<CAPTION>
Units Transferred
Between Units Withdrawn,
Units Outstanding Sub-Accounts Surrendered and
Beginning of Period Units Purchased and Fixed Account Annuitized
------------------------- ------------------------- ------------------------- -------------------------
Six Six Six Six
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999 2000 1999
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MFS REGATTA CONTRACTS:
----------------------------------
CAS Sub-Account 952,236 1,030,044 577 61 1,831 (26,735 ) (38,435 ) (51,134 )
MIT Sub-Account 751,259 759,522 1,184 -- 245 21,064 (24,873 ) (29,327 )
GSS Sub-Account 602,006 516,775 -- -- (17,668) 120,671 (25,833 ) (35,440 )
HYS Sub-Account 258,754 299,433 -- -- (15,144) (15,972 ) (13,308 ) (24,707 )
MSS Sub-Account 281,981 294,045 356 -- 17,855 (215 ) (8,505 ) (11,849 )
MMS Sub-Account 471,149 529,219 -- -- 138,666 42,161 (107,921 ) (100,231 )
TRS Sub-Account 1,226,124 1,320,198 2,142 88 (34,449) (9,988 ) (71,555 ) (84,174 )
UTS Sub-Account 95,916 88,196 -- -- 6,475 11,209 (4,579 ) (3,489 )
GGS Sub-Account 186,528 219,014 -- -- 9,442 (20,497 ) (4,726 ) (11,989 )
GGR Sub-Account 326,782 327,055 -- -- 30,739 11,581 (5,209 ) (11,854 )
MFS REGATTA GOLD CONTRACTS:
----------------------------------
BDS Sub-Account(a) 2,344 -- 3,915 1,642 748 702 (10 ) --
CAS Sub-Account 1,596,747 1,387,198 50,626 188,906 (62,369) 85,637 (78,092 ) (64,994 )
COS Sub-Account 423,782 245,193 22,316 53,060 39,076 134,413 (11,293 ) (8,884 )
MIT Sub-Account 3,305,098 2,936,804 76,278 378,202 (173,449) 124,941 (114,727 ) (134,849 )
EGS Sub-Account 1,674,168 1,482,470 44,500 140,252 210,405 110,205 (170,422 ) (58,759 )
EIS Sub-Account(b) 23,813 -- 3,220 15,360 10,603 8,484 (1,578 ) (31 )
FCE Sub-Account 28,793 23,240 454 2,946 (4,704) 3,183 (2,964 ) (576 )
FCG Sub-Account 246,036 272,201 1,222 6,646 (7,761) (27,235 ) (6,204 ) (5,576 )
FCI Sub-Account 53,996 41,872 17,728 7,232 29,261 8,088 (2,137 ) (3,196 )
GSS Sub-Account 553,951 483,528 8,087 34,691 (64,157) 53,163 (15,405 ) (17,431 )
HYS Sub-Account 988,547 869,291 44,649 73,815 (65,705) 82,266 (29,227 ) (36,825 )
MSS Sub-Account 478,856 401,019 21,110 37,591 35,763 53,417 (9,842 ) (13,171 )
MIS Sub-Account(c) 275,481 -- 82,219 149,516 188,995 138,031 (6,366 ) (12,066 )
MMS Sub-Account 760,178 921,204 106,149 424,895 (172,900) (511,872 ) (181,100 ) (74,049 )
NWD Sub-Account(c) 69,746 -- 20,576 8,312 52,727 61,436 (4,096 ) (2 )
RES Sub-Account 2,320,814 2,330,245 33,023 136,515 6,451 (38,961 ) (79,064 ) (106,985 )
RGS Sub-Account 283,227 222,849 10,335 45,362 (3,010) 26,016 (5,319 ) (11,000 )
SGS Sub-Account(d) -- -- 1,000 -- -- -- -- --
TRS Sub-Account 2,196,447 2,154,305 38,569 198,169 (256,467) 15,680 (53,301 ) (171,707 )
UTS Sub-Account 616,993 529,135 25,077 74,691 42,928 42,317 (10,581 ) (29,150 )
GAA Sub-Account 259,810 267,873 2,033 10,414 (3,107) (9,790 ) (8,686 ) (8,687 )
GGS Sub-Account 89,314 90,226 2,241 6,166 5,541 (1,143 ) (893 ) (5,935 )
GGR Sub-Account 509,687 402,319 13,715 30,765 26,297 91,578 (12,361 ) (14,975 )
GTR Sub-Account 310,409 334,013 4,367 14,856 (4,071) (26,106 ) (4,776 ) (12,354 )
RSS Sub-Account(e) 23,159 -- 12,497 4,409 18,987 18,889 (481 ) (139 )
SIS Sub-Account(f) 23,978 -- 2,490 23,978 2,577 -- (34 ) --
<CAPTION>
Units Outstanding
End of Period
-------------------------
Six
Months Ended Year Ended
June 30, December 31,
2000 1999
------------ ------------
<S> <C> <C>
MFS REGATTA CONTRACT
--------------------
CAS Sub-Account 916,209 952,236
MIT Sub-Account 727,815 751,259
GSS Sub-Account 558,505 602,006
HYS Sub-Account 230,302 258,754
MSS Sub-Account 291,687 281,981
MMS Sub-Account 501,894 471,149
TRS Sub-Account 1,122,262 1,226,124
UTS Sub-Account 97,812 95,916
GGS Sub-Account 191,244 186,528
GGR Sub-Account 352,312 326,782
MFS REGATTA GOLD CON
--------------------
BDS Sub-Account(a) 6,997 2,344
CAS Sub-Account 1,506,912 1,596,747
COS Sub-Account 473,881 423,782
MIT Sub-Account 3,093,200 3,305,098
EGS Sub-Account 1,758,651 1,674,168
EIS Sub-Account(b) 36,058 23,813
FCE Sub-Account 21,579 28,793
FCG Sub-Account 233,293 246,036
FCI Sub-Account 98,848 53,996
GSS Sub-Account 482,476 553,951
HYS Sub-Account 938,264 988,547
MSS Sub-Account 525,887 478,856
MIS Sub-Account(c) 540,329 275,481
MMS Sub-Account 512,327 760,178
NWD Sub-Account(c) 138,953 69,746
RES Sub-Account 2,281,224 2,320,814
RGS Sub-Account 285,233 283,227
SGS Sub-Account(d) 1,000 --
TRS Sub-Account 1,925,248 2,196,447
UTS Sub-Account 674,417 616,993
GAA Sub-Account 250,050 259,810
GGS Sub-Account 96,203 89,314
GGR Sub-Account 537,338 509,687
GTR Sub-Account 305,929 310,409
RSS Sub-Account(e) 54,162 23,159
SIS Sub-Account(f) 29,011 23,978
</TABLE>
(a) For the period May 27, 1999 (commencement of operations) through
December 31, 1999.
(b) For the period May 7, 1999 (commencement of operations) through
December 31, 1999.
(c) For the period April 26, 1999 (commencement of operations) through
December 31, 1999.
(d) For the period January 1, 2000 (commencement of operations) through
June 30, 2000.
(e) For the period August 2, 1999 (commencement of operations) through
December 31, 1999.
(f) For the period September 10, 1999 (commencement of operations) through
December 31, 1999.
18
<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 Equity Sub-Account, Research
Growth and Income Sub-Account, Strategic Growth Sub-Account, Total Return
Sub-Account, Utilities Sub-Account, Global Asset Allocation Sub-Account, Global
Governments Sub-Account, Global Growth Sub-Account, Global Total Return
Sub-Account, Research International Sub-Account, and Strategic Income
Sub-Account of Sun Life (N.Y.) Variable Account C (the "Sub-Accounts") as of
June 30, 2000, the related statement of operations for the six months then ended
and the statements of changes in net assets for the six months ended June 30,
2000 and the year ended December 31, 1999. These financial statements are the
responsibility of management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities held at June 30,
2000 by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Sub-Accounts as of June 30, 2000 and the
results of their operations and the changes in their net assets for the
respective stated periods in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 11, 2000
----------------------------------------
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.
