<PAGE>
DEAR CONTRACT OWNERS:
An environment of declining interest rates and a favorable outlook for inflation
helped establish a pattern of positive performance in both fixed-income and
equity markets around the world during the past 12 months. A series of
reductions in short-term interest rates by the Federal Reserve Board, as well as
by some other central banks around the world, contributed to declining yields
and rising prices of many fixed-income securities throughout the year. At the
same time, lower interest rates and strong corporate earnings reports through
most of the year helped the prices of many stocks to rise over the period,
producing strong returns. For the year ended December 31, 1995, the market, as
measured by the Standard & Poor's 500 Composite Index (the S&P 500), a popular,
unmanaged index of common stock performance, returned +37.53%.
Prospects for the Federal Reserve to lower short-term interest rates appear
favorable as the economy continues to be in a slow-growth mode. Long-term
yields, meanwhile, moved noticeably downward in the latter months of 1995 in
anticipation of more modest fourth-quarter growth with continued low inflation.
While there were some increases in commodity prices early in the year, companies
found it difficult to pass these on at the consumer level as they continue to
fight for market share. Additionally, unit labor costs remain under control and
seem to be growing at a pace that is near or below the ongoing inflation rate.
Thus, with long-term U.S. government bonds yielding approximately 6% in an
environment of 2% to 3% inflation, real (adjusted for inflation) rates of return
in the fixed-income markets remain relatively attractive.
The performance of the world's stock markets has been mostly positive during the
past year. According to the Morgan Stanley Capital International World Index,
while the U.S. market was clearly the best-performing major stock market in the
world, the performance of the European markets (in local currencies) varied
widely, with Switzerland (+27%), Sweden (+19%) and the United Kingdom (+22%) at
the top of the tables and Germany (+8%), France (+5%) and Italy (-1%) lagging.
In general, the markets of the Pacific Rim showed improved performance during
the second half but not enough to offset weak first-half returns. Japan finished
the year up 4%, while Singapore was up 8%, Malaysia gained 2%, and Korea
declined 9%. New Zealand (+20%), Australia (+17%) and Hong Kong (+22%) were the
best Pacific Rim performers.
When measured in U.S. dollars, currency movements had a noticeable impact on
international stock market returns during the past year. The U.S. dollar fell 7%
versus the German mark and 11% against the Swiss franc, thereby aiding U.S.
dollar-based returns. Conversely, the U.S. dollar strengthened 4% against the
Japanese yen, with a 22% gain against the yen in the second half alone.
U.S. OUTLOOK
Moderate but sustainable growth was the hallmark of the economic expansion's
fifth year, although signs of sluggishness were seen late in the year. For
example, recent retail sales have been disappointing, in part because of rising
levels of consumer debt. An extended period of lower mortgage rates seems to
have relieved much of the pent-up demand for housing. Growth is not expected to
get much help from the manufacturing sector, either, as order flows from
manufacturers have moderated. Export activity, meanwhile, is also expected to
remain modest as continued weakness abroad limits demand for many U.S. goods.
However, the Federal Reserve's consistent and, so far, successful efforts to
fight inflation seem to be giving consumers and businesses enough longer-term
confidence to help maintain modest growth in real gross domestic product into
1996.
After some volatility late in the third quarter, the U.S. stock market continued
to strengthen. Although many companies reported solid third-quarter results,
there was some weakness in the earnings of retail, financial services and even
some technology companies. However, a slowdown in earnings may be a
1
<PAGE>
positive development if it is an indication that the economy is not overheating
and inflation is under control. While we see a deceleration of corporate
earnings as the inevitable consequence of traditional business cycles, we remain
encouraged by the high absolute level of profitability among U.S. companies.
Also, many companies' increasing emphasis on cost containment and growing use of
technology have helped keep them highly competitive and reasonably profitable.
Looking ahead, we believe that a stabilizing interest rate environment, coupled
with reasonable earnings reports, could justify current market valuations.
GLOBAL OUTLOOK
A pattern of slow to moderate growth and low and controlled inflation remains a
dominant theme in major industrialized countries, including the United States.
While the recent recovery of the dollar against the German mark and the Japanese
yen has added some strength to the economies of Europe and Japan, the outlook is
for sluggish economic growth in the near term. Although moves by central banks
in Germany and Japan to lower interest rates have helped stimulate domestic
demand, many industrial companies in these countries are still struggling to
compete in a global marketplace in which the prices of their products are less
competitively priced. On the positive side, this does mean little to no
inflationary pressure in these countries, and we believe that this, combined
with potential further reductions in interest rates, should help provide a
foundation for stronger economic growth in the long run. Also, it appears that
many of the cost-cutting measures taken by companies in these countries over the
past few years will ultimately provide earnings leverage when economic growth
improves. Inflation in most overseas economies remains in a downward trend,
providing fixed-income investors with opportunities for relatively attractive
real rates of interest, possibly accompanied by moderate price appreciation.
While the dollar continues to represent a sound store of long-term value, its
relative strength in the near term is restrained by the persistent U.S.
current-account deficit.
European governments, meanwhile, are engaged in multi-year programs to reduce
their budget deficits and debt levels. These programs are positive for bonds, in
that lower government spending tends to reduce inflationary pressures and lower
issuance of government debt reduces supply pressures on the bond market. In the
Japanese market, powerful deflationary forces have supported a drop in yields to
historically low levels. We now feel this process may be drawing to an end,
given a reversal of priorities at the central bank from fighting inflation,
which is now non-existent, to offsetting the downward spiral of deflation.
Meanwhile, the high returns of the U.S. bond market, as measured by the Lehman
Brothers Government Bond Index, have been echoed in other U.S. dollar-bloc
markets, including those of Australia, New Zealand, and Canada, all of which saw
positive performance over the last 12 months according to Salomon Brothers. The
Australian market currently offers significantly higher yields than the U.S.
market and, we believe, represents good value. As long as the outlook for U.S.
bonds remains positive, these related markets could demonstrate relatively good
performance.
Performance results for the year ended December 31, 1995 for Regatta and Regatta
Gold contracts are shown in the table on the following page, while information
on the current strategy for each series of MFS/Sun Life Series Trust may be
found in the accompanying Series Trust annual report.
On behalf of the
Board of Directors,
John D. McNeil
Chairman
January 12, 1996
2
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY
These performance results do not reflect any applicable surrender charges. Past
performance is no guarantee of future results.
<TABLE>
<CAPTION>
Unit Value
-----------------------------------
December 31, Percent Change
1994 December 31, 1995 in Unit Value
---------------- ----------------- --------------
<S> <C> <C> <C>
MFS REGATTA CONTRACTS:
Capital Appreciation Series....................................... $ 15.5512 $ 20.6225 +32.61
Government Securities Series...................................... 13.3872 15.5323 +16.02
High Yield Series................................................. 15.4801 17.8678 +15.42
Managed Sectors Series............................................ 14.5653 18.9987 +30.44
Money Market Series............................................... 11.8185 12.2910 + 4.00
Total Return Series............................................... 14.2495 17.8165 +25.03
World Governments Series.......................................... 14.2437 16.2514 +14.10
MFS REGATTA GOLD CONTRACTS:
Capital Appreciation Series....................................... $ 14.2064 $ 18.8392 +32.61
Conservative Growth Series........................................ 11.9036 16.1344 +35.54
Emerging Growth Series............................................ 10.0000* 12.5675 +38.52**
MFS/Foreign & Colonial International Growth and Income Series..... 10.0000* 10.0942 + 0.94***
Government Securities Series...................................... 11.2891 13.0981 +16.02
High Yield Series................................................. 12.7475 14.7137 +15.42
Managed Sectors Series............................................ 12.2606 15.9925 +30.44
Money Market Series............................................... 10.5878 11.0111 + 4.00
Research Series................................................... 9.8615 13.3663 +35.54
Total Return Series............................................... 11.8694 14.8406 +25.03
Utilities Series.................................................. 9.3739 12.2403 +30.58
World Asset Allocation Series..................................... 10.0367 12.0393 +19.95
World Governments Series.......................................... 11.6151 13.2523 +14.10
World Growth Series............................................... 10.7803 12.3321 +14.39
World Total Return Series......................................... 10.0195 11.6516 +16.29
</TABLE>
*Reflects unit value on date of commencement of operations.
**Annualized.
***Not annualized.
STATEMENT OF CONDITION -- December 31, 1995
<TABLE>
<CAPTION>
Assets:
Investments in MFS/Sun Life Series Trust: Shares Cost Value
----------- -------------- --------------
<S> <C> <C> <C>
Capital Appreciation Series ("CAS").............................................. 20,694,441 $ 555,400,190 $ 661,970,636
Conservative Growth Series ("CGS")............................................... 12,268,501 217,219,949 270,130,493
Emerging Growth Series ("EGS")................................................... 5,301,215 63,686,760 67,239,716
MFS/Foreign & Colonial International Growth and Income Series ("FCG")............ 708,797 7,067,308 7,178,745
Government Securities Series ("GSS")............................................. 21,859,555 276,753,000 292,703,791
High Yield Series ("HYS")........................................................ 13,520,748 114,301,393 120,648,644
Managed Sectors Series ("MSS")................................................... 6,986,407 153,500,488 177,775,494
Money Market Series ("MMS")...................................................... 232,452,692 232,452,692 232,452,692
Research Series ("RES").......................................................... 5,290,149 63,199,027 71,822,398
Total Return Series ("TRS")...................................................... 55,713,387 851,548,080 1,024,281,880
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- continued
<TABLE>
<CAPTION>
Assets:
Investments in MFS/Sun Life Series Trust: Shares Cost Value
----------- -------------- --------------
<S> <C> <C> <C>
Utilities Series ("UTS")......................................................... 3,409,214 $ 34,769,429 $ 41,796,297
World Asset Allocation Series ("WAA")............................................ 2,115,612 23,284,489 25,862,059
World Governments Series ("WGS")................................................. 11,075,887 133,922,934 138,299,644
World Growth Series ("WGR")...................................................... 11,457,908 127,633,799 141,460,196
World Total Return Series ("WTR")................................................ 1,164,889 12,758,587 13,783,458
-------------- --------------
$2,867,498,125 $3,287,406,143
--------------
--------------
Receivable from sponsor......................................................................................... 162,592
--------------
Net assets................................................................................................ $3,287,568,735
--------------
--------------
</TABLE>
<TABLE>
<CAPTION>
Deferred Variable Annuity Contracts Reserve for
-------------------------------------- Variable
NET ASSETS APPLICABLE TO CONTRACT OWNERS: Units Unit Value Value Annuities Total
---------- ---------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C>
MFS Regatta Contracts:
CAS.................................... 6,615,207 $ 20.6225 $ 136,410,833 $ 245,038 $ 136,655,871
GSS.................................... 3,535,152 15.5323 54,908,660 225,698 55,134,358
HYS.................................... 1,068,412 17.8678 19,081,169 8,030 19,089,199
MSS.................................... 2,150,361 18.9987 40,851,418 86,338 40,937,756
MMS.................................... 3,453,907 12.2910 42,442,851 164,363 42,607,214
TRS.................................... 13,106,997 17.8165 233,507,279 1,162,925 234,670,204
WGS.................................... 1,730,002 16.2514 28,118,590 77,135 28,195,725
-------------- ----------- --------------
$ 555,320,800 $1,969,527 $ 557,290,327
-------------- ----------- --------------
MFS Regatta Gold Contracts:
CAS.................................... 27,782,739 $ 18.8392 $ 523,347,352 $2,166,217 $ 525,513,569
CGS.................................... 16,712,586 16.1344 269,625,529 530,164 270,155,693
EGS.................................... 5,346,104 12.5675 67,183,165 -- 67,183,165
FCG.................................... 711,179 10.0942 7,178,745 -- 7,178,745
GSS.................................... 18,082,586 13.0981 236,851,391 782,886 237,634,277
HYS.................................... 6,880,080 14.7137 101,211,247 310,936 101,522,183
MSS.................................... 8,542,869 15.9925 136,616,983 216,172 136,833,155
MMS.................................... 17,186,041 11.0111 189,244,865 338,871 189,583,736
RES.................................... 5,341,160 13.3663 71,394,271 510,203 71,904,474
TRS.................................... 53,091,748 14.8406 787,862,944 1,668,256 789,531,200
UTS.................................... 3,410,047 12.2403 41,738,359 55,148 41,793,507
WAA.................................... 2,141,041 12.0393 25,776,833 90,584 25,867,417
WGS.................................... 8,272,858 13.2523 109,635,499 519,035 110,154,534
WGR.................................... 11,421,691 12.3321 140,851,336 646,294 141,497,630
WTR.................................... 1,170,586 11.6516 13,639,351 159,580 13,798,931
-------------- ----------- --------------
$2,722,157,870 $7,994,346 $2,730,152,216
-------------- ----------- --------------
NET ASSETS APPLICABLE TO SPONSOR................................... $ 126,192 $ -- $ 126,192
-------------- ----------- --------------
Net assets................................................. $3,277,604,862 $9,963,873 $3,287,568,735
-------------- ----------- --------------
-------------- ----------- --------------
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Year Ended December 31, 1995
<TABLE>
<CAPTION>
CAS CGS EGS FCG 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.......... $ 12,222,330 $ 4,213,752 $ -- $ -- $ 15,080,454
Mortality and expense risk
charges......................... 6,566,319 2,296,967 245,139 9,593 3,262,464
Distribution expense charges..... 180,081 -- -- -- 80,215
Administrative expense charges... 607,879 275,636 29,417 1,151 311,281
------------- ------------ ------------ ----------- ------------
Net investment income
(expense)................... $ 4,868,051 $ 1,641,149 $ (274,556) $(10,744) $ 11,426,494
------------- ------------ ------------ ----------- ------------
------------- ------------ ------------ ----------- ------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains on investment
transactions:
Proceeds from sales............ $ 168,445,760 $ 7,669,518 $17,109,373 $ 11,837 $ 78,420,543
Cost of investments sold....... 159,776,008 6,109,739 14,892,586 12,080 79,967,164
------------- ------------ ------------ ----------- ------------
Net realized gains (losses).. $ 8,669,752 $ 1,559,779 $ 2,216,787 $ (243) $ (1,546,621)
------------- ------------ ------------ ----------- ------------
Net unrealized appreciation
(depreciation) on investments:
End of year.................... $ 106,570,446 $ 52,910,544 $ 3,552,956 $111,437 $ 15,950,791
Beginning of year.............. (24,453,057) 124,681 -- -- (13,654,356)
------------- ------------ ------------ ----------- ------------
Change in unrealized
appreciation................ $ 131,023,503 $ 52,785,863 $ 3,552,956 $111,437 $ 29,605,147
------------- ------------ ------------ ----------- ------------
Realized and unrealized gains.... $ 139,693,255 $ 54,345,642 $ 5,769,743 $111,194 $ 28,058,526
------------- ------------ ------------ ----------- ------------
INCREASE IN NET ASSETS FROM
OPERATIONS...................... $ 144,561,306 $ 55,986,791 $ 5,495,187 $100,450 $ 39,485,020
------------- ------------ ------------ ----------- ------------
------------- ------------ ------------ ----------- ------------
<CAPTION>
HYS MSS MMS
Sub-Account Sub-Account Sub-Account
------------ ------------ -------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 6,506,329 $ 4,070,752 $ 10,112,163
Mortality and expense risk
charges......................... 1,234,228 1,785,559 2,360,642
Distribution expense charges..... 25,060 54,132 57,813
Administrative expense charges... 123,047 160,137 225,464
------------ ------------ -------------
Net investment income
(expense)................... $ 5,123,994 $ 2,070,924 $ 7,468,244
------------ ------------ -------------
------------ ------------ -------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains on investment
transactions:
Proceeds from sales............ $ 55,764,339 $ 25,990,021 $ 393,915,269
Cost of investments sold....... 53,874,507 23,211,669 393,915,269
------------ ------------ -------------
Net realized gains (losses).. $ 1,889,832 $ 2,778,352 $ --
------------ ------------ -------------
Net unrealized appreciation
(depreciation) on investments:
End of year.................... $ 6,347,251 $ 24,275,006 $ --
Beginning of year.............. (491,661) (6,047,477) --
------------ ------------ -------------
Change in unrealized
appreciation................ $ 6,838,912 $ 30,322,483 $ --
------------ ------------ -------------
Realized and unrealized gains.... $ 8,728,744 $ 33,100,835 $ --
------------ ------------ -------------
INCREASE IN NET ASSETS FROM
OPERATIONS...................... $ 13,852,738 $ 35,171,759 $ 7,468,244
------------ ------------ -------------
------------ ------------ -------------
</TABLE>
*For the period from May 1, 1995 (commencement of investment operations) to
December 31, 1995.
**For the period from October 4, 1995 (commencement of investment operations) to
December 31, 1995.
See notes to financial statements
5
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- continued
<TABLE>
<CAPTION>
RES TRS UTS WAA WGS
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............... $ 5,213 $ 32,466,536 $ 667,466 $ 6,090 $ 7,171,231
Mortality and expense risk charges.... 347,162 10,927,279 354,562 162,497 1,688,912
Distribution expense charges.......... -- 323,202 -- -- 41,714
Administrative expense charges........ 41,659 988,072 42,547 19,500 160,955
----------- ------------- ----------- ----------- ------------
Net investment income (expense)... $ (383,608) $ 20,227,983 $ 270,357 $ (175,907) $ 5,279,650
----------- ------------- ----------- ----------- ------------
----------- ------------- ----------- ----------- ------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains on investment
transactions:
Proceeds from sales................. $3,467,672 $ 84,253,831 $8,132,861 $1,134,082 $ 37,103,469
Cost of investments sold............ 3,086,840 67,830,111 7,866,953 1,013,492 37,082,327
----------- ------------- ----------- ----------- ------------
Net realized gains................ $ 380,832 $ 16,423,720 $ 265,908 $ 120,590 $ 21,142
----------- ------------- ----------- ----------- ------------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $8,623,371 $ 172,733,800 $7,026,868 $2,577,570 $ 4,376,710
Beginning of year................... 11,209 12,939,657 (420,499) 17,780 (7,922,900)
----------- ------------- ----------- ----------- ------------
Change in unrealized
appreciation..................... $8,612,162 $ 159,794,143 $7,447,367 $2,559,790 $ 12,299,610
----------- ------------- ----------- ----------- ------------
Realized and unrealized gains......... $8,992,994 $ 176,217,863 $7,713,275 $2,680,380 $ 12,320,752
----------- ------------- ----------- ----------- ------------
INCREASE IN NET ASSETS FROM
OPERATIONS........................... $8,609,386 $ 196,445,846 $7,983,632 $2,504,473 $ 17,600,402
----------- ------------- ----------- ----------- ------------
----------- ------------- ----------- ----------- ------------
<CAPTION>
WGR WTR
Sub-Account Sub-Account Total
------------ ----------- -------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 3,100,162 $ 2,399 $ 95,624,877
Mortality and expense risk charges.... 1,457,299 79,873 32,778,495
Distribution expense charges.......... -- -- 762,217
Administrative expense charges........ 174,876 9,584 3,171,205
------------ ----------- -------------
Net investment income (expense)... $ 1,467,987 $ (87,058) $ 58,912,960
------------ ----------- -------------
------------ ----------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains on investment
transactions:
Proceeds from sales................. $ 24,859,820 $ 971,428 $ 907,249,823
Cost of investments sold............ 23,988,619 908,827 873,536,191
------------ ----------- -------------
Net realized gains................ $ 871,201 $ 62,601 $ 33,713,632
------------ ----------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $ 13,826,397 $1,024,871 $ 419,908,018
Beginning of year................... (867,181) 4,178 (40,759,626)
------------ ----------- -------------
Change in unrealized
appreciation..................... $ 14,693,578 $1,020,693 $ 460,667,644
------------ ----------- -------------
Realized and unrealized gains......... $ 15,564,779 $1,083,294 $ 494,381,276
------------ ----------- -------------
INCREASE IN NET ASSETS FROM
OPERATIONS........................... $ 17,032,766 $ 996,236 $ 553,294,236
------------ ----------- -------------
------------ ----------- -------------
</TABLE>
See notes to financial statements
6
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CAS CGS EGS FCG
Sub-Account Sub-Account Sub-Account Sub-Account
----------------------------- ----------------------------- ------------- -------------
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
----------------------------- ----------------------------- ------------- -------------
1995 1994 1995 1994 1995* 1995**
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(expense).................. $ 4,868,051 $ 27,825,823 $ 1,641,149 $ 147,916 $ (274,556) $ (10,744)
Net realized gains
(losses)................... 8,669,752 12,649,928 1,559,779 469,410 2,216,787 (243)
Net unrealized gains
(losses)................... 131,023,503 (57,996,267) 52,785,863 (3,896,273) 3,552,956 111,437
------------- ------------- ------------- ------------- ------------- -------------
Increase (decrease) in net
assets from operations... $ 144,561,306 $ (17,520,516) $ 55,986,791 $ (3,278,947) $ 5,495,187 $ 100,450
------------- ------------- ------------- ------------- ------------- -------------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 120,979,478 $ 131,738,032 $ 74,122,408 $ 54,704,628 $ 34,471,454 $ 4,120,619
Net transfers between
Sub-Accounts and Fixed
Account.................. 51,189,081 (30,000,160) 19,980,665 5,906,300 27,751,346 3,003,996
Withdrawals, surrenders,
annuitizations and
contract charges......... (35,672,499) (22,127,701) (11,060,939) (4,909,494) (532,429) (46,320)
------------- ------------- ------------- ------------- ------------- -------------
Net accumulation
activity............... $ 136,496,060 $ 79,610,171 $ 83,042,134 $ 55,701,434 $ 61,690,371 $ 7,078,295
------------- ------------- ------------- ------------- ------------- -------------
Annuitization Activity:
Annuitizations............ $ 1,153,294 $ 325,123 $ 201,542 $ 131,189 $ 50,528 $ --
Annuity payments and
contract charges......... (216,005) (135,087) (58,715) (58,514) (593) --
Net transfers between
Sub-Accounts............. 531,083 (13,777) 2,298 68,480 4,223 --
Adjustment to annuity
reserve.................. 131,042 (138,996) 30,462 (3,424) (56,551) --
------------- ------------- ------------- ------------- ------------- -------------
Net annuitization
activity............... $ 1,599,414 $ 37,263 $ 175,587 $ 137,731 $ (2,393) $ --
------------- ------------- ------------- ------------- ------------- -------------
Increase in net assets from
participant transactions... $ 138,095,474 $ 79,647,434 $ 83,217,721 $ 55,839,165 $ 61,687,978 $ 7,078,295
------------- ------------- ------------- ------------- ------------- -------------
Increase in net assets.... $ 282,656,780 $ 62,126,918 $ 139,204,512 $ 52,560,218 $ 67,183,165 $ 7,178,745
NET ASSETS:
Beginning of year........... 379,512,660 317,385,742 130,951,181 78,390,963 -- --
------------- ------------- ------------- ------------- ------------- -------------
End of year................. $ 662,169,440 $ 379,512,660 $ 270,155,693 $ 130,951,181 $ 67,183,165 $ 7,178,745
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
*For the period from May 1, 1995 (commencement of investment operations) to
December 31, 1995.
**For the period from October 4, 1995 (commencement of investment operations) to
December 31, 1995.
See notes to financial statements
7
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GSS HYS MSS
Sub-Account Sub-Account Sub-Account
----------------------------- ---------------------------- -----------------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
----------------------------- ---------------------------- -----------------------------
1995 1994 1995 1994 1995 1994
------------- ------------- ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income......... $ 11,426,494 $ 10,541,212 $ 5,123,994 $ 3,353,160 $ 2,070,924 $ 10,371,457
Net realized gains (losses)... (1,546,621) 989,314 1,889,832 (1,835,584) 2,778,352 2,312,910
Net unrealized gains
(losses)..................... 29,605,147 (19,932,794) 6,838,912 (3,354,235) 30,322,483 (16,183,713)
------------- ------------- ------------- ------------ ------------- -------------
Increase (decrease) in net
assets from operations... $ 39,485,020 $ (8,402,268) $ 13,852,738 $ (1,836,659) $ 35,171,759 $ (3,499,346)
------------- ------------- ------------- ------------ ------------- -------------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................... $ 47,266,837 $ 81,307,573 $ 20,152,853 $ 25,863,588 $ 34,586,296 $ 29,286,189
Net transfers between
Sub-Accounts and Fixed
Account.................... (42,381,252) (10,559,956) 22,611,563 (10,800,800) 9,193,092 (4,775,869)
Withdrawals, surrenders,
annuitizations and contract
charges.................... (21,245,942) (18,857,834) (7,980,818) (6,561,955) (9,392,233) (7,012,701)
------------- ------------- ------------- ------------ ------------- -------------
Net accumulation
activity................. $ (16,360,357) $ 51,889,783 $ 34,783,598 $ 8,500,833 $ 34,387,155 $ 17,497,619
------------- ------------- ------------- ------------ ------------- -------------
Annuitization Activity:
Annuitizations.............. $ 354,393 $ 519,211 $ 16,894 $ 143,700 $ 92,920 $ 68,728
Annuity payments and
contract charges........... (168,285) (131,378) (68,402) (71,050) (56,337) (32,033)
Net transfers between
Sub-Accounts............... (53,070) (128,389) 8,428 119,221 94,161 976
Adjustment to annuity
reserve.................... 33,716 41,563 (25,024) (8,871) (2,133) (388)
------------- ------------- ------------- ------------ ------------- -------------
Net annuitization
activity................. $ 166,754 $ 301,007 $ (68,104) $ 183,000 $ 128,611 $ 37,283
------------- ------------- ------------- ------------ ------------- -------------
Increase in net assets from
participant transactions..... $ (16,193,603) $ 52,190,790 $ 34,715,494 $ 8,683,833 $ 34,515,766 $ 17,534,902
------------- ------------- ------------- ------------ ------------- -------------
Increase in net assets...... $ 23,291,417 $ 43,788,522 $ 48,568,232 $ 6,847,174 $ 69,687,525 $ 14,035,556
NET ASSETS:
Beginning of year............. 269,477,218 225,688,696 72,043,150 65,195,976 108,083,386 94,047,830
------------- ------------- ------------- ------------ ------------- -------------
End of year................... $ 292,768,635 $ 269,477,218 $ 120,611,382 $ 72,043,150 $ 177,770,911 $ 108,083,386
------------- ------------- ------------- ------------ ------------- -------------
------------- ------------- ------------- ------------ ------------- -------------
</TABLE>
See notes to financial statements
8
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MMS RES
Sub-Account Sub-Account
------------------------------ --------------------------
Year Ended Year Ended
December 31, December 31,
------------------------------ --------------------------
1995 1994 1995 1994*
-------------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (expense)....... $ 7,468,244 $ 4,088,955 $ (383,608) $ (4,034)
Net realized gains (losses)........... -- -- 380,832 (3,877)
Net unrealized gains (losses)......... -- -- 8,612,162 11,209
-------------- ------------- ------------ -----------
Increase (decrease) in net assets
from operations.................. $ 7,468,244 $ 4,088,955 $ 8,609,386 $ 3,298
-------------- ------------- ------------ -----------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 172,273,093 $ 169,065,890 $ 44,406,655 $ 1,223,399
Net transfers between Sub-Accounts
and Fixed Account.................. (115,663,895) (47,970,496) 15,859,913 2,663,995
Withdrawals, surrenders,
annuitizations and contract
charges............................ (34,523,223) (21,288,054) (1,251,158) (19,412)
-------------- ------------- ------------ -----------
Net accumulation activity......... $ 22,085,975 $ 99,807,340 $ 59,015,410 $ 3,867,982
-------------- ------------- ------------ -----------
Annuitization Activity:
Annuitizations...................... $ 583,368 $ 559,738 $ 404,830 $ --
Annuity payments and contract
charges............................ (185,934) (103,980) (20,548) --
Net transfers between
Sub-Accounts....................... (656,607) 122,710 (57,959) --
Adjustment to annuity reserve....... (33,157) 96,065 82,075 --
-------------- ------------- ------------ -----------
Net annuitization activity........ $ (292,330) $ 674,533 $ 408,398 $ --
-------------- ------------- ------------ -----------
Increase in net assets from
participant transactions............. $ 21,793,645 $ 100,481,873 $ 59,423,808 $ 3,867,982
-------------- ------------- ------------ -----------
Increase in net assets.............. $ 29,261,889 $ 104,570,828 $ 68,033,194 $ 3,871,280
NET ASSETS:
Beginning of year..................... 203,055,253 98,484,425 3,871,280 --
-------------- ------------- ------------ -----------
End of year........................... $ 232,317,142 $ 203,055,253 $ 71,904,474 $ 3,871,280
-------------- ------------- ------------ -----------
-------------- ------------- ------------ -----------
<CAPTION>
TRS
Sub-Account
------------------------------
Year Ended
December 31,
------------------------------
1995 1994
-------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (expense)....... $ 20,227,983 $ 19,183,787
Net realized gains (losses)........... 16,423,720 9,131,549
Net unrealized gains (losses)......... 159,794,143 (56,210,282)
-------------- -------------
Increase (decrease) in net assets
from operations.................. $ 196,445,846 $ (27,894,946)
-------------- -------------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 114,688,434 $ 222,713,883
Net transfers between Sub-Accounts
and Fixed Account.................. (1,317,333) (7,151,070)
Withdrawals, surrenders,
annuitizations and contract
charges............................ (63,409,172) (51,917,624)
-------------- -------------
Net accumulation activity......... $ 49,961,929 $ 163,645,189
-------------- -------------
Annuitization Activity:
Annuitizations...................... $ 238,231 $ 816,949
Annuity payments and contract
charges............................ (656,053) (624,252)
Net transfers between
Sub-Accounts....................... 17,486 (63,499)
Adjustment to annuity reserve....... (16,966) 21,464
-------------- -------------
Net annuitization activity........ $ (417,302) $ 150,662
-------------- -------------
Increase in net assets from
participant transactions............. $ 49,544,627 $ 163,795,851
-------------- -------------
Increase in net assets.............. $ 245,990,473 $ 135,900,905
NET ASSETS:
Beginning of year..................... 778,210,931 642,310,026
-------------- -------------
End of year........................... $1,024,201,404 $ 778,210,931
-------------- -------------
-------------- -------------
</TABLE>
*For the period from November 7, 1994 (commencement of investment operations) to
December 31, 1994.
See notes to financial statements
9
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
UTS WAA WGS
Sub-Account Sub-Account Sub-Account
--------------------------- -------------------------- -----------------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
--------------------------- -------------------------- -----------------------------
1995 1994 1995 1994* 1995 1994
------------ ------------ ------------ ----------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (expense)....... $ 270,357 $ (199,726) $ (175,907) $ (2,966) $ 5,279,650 $ 9,480,795
Net realized gains (losses)........... 265,908 (122,032) 120,590 (147) 21,142 (873,333)
Net unrealized gains (losses)......... 7,447,367 (443,189) 2,559,790 17,780 12,299,610 (16,425,541)
------------ ------------ ------------ ----------- ------------- -------------
Increase (decrease) in net assets
from operations.................... $ 7,983,632 $ (764,947) $ 2,504,473 $ 14,667 $ 17,600,402 $ (7,818,079)
------------ ------------ ------------ ----------- ------------- -------------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 12,426,034 $ 17,617,955 $ 14,182,774 $ 1,457,362 $ 12,226,329 $ 37,946,650
Net transfers between Sub-Accounts
and Fixed Account.................. 2,364,291 2,488,460 6,506,983 1,534,984 (8,347,691) (17,688,160)
Withdrawals, surrenders,
annuitizations and contract
charges............................ (2,335,754) (828,336) (403,056) (3,895) (8,464,694) (8,869,406)
------------ ------------ ------------ ----------- ------------- -------------
Net accumulation activity......... $ 12,454,571 $ 19,278,079 $ 20,286,701 $ 2,988,451 $ (4,586,056) $ 11,389,084
------------ ------------ ------------ ----------- ------------- -------------
Annuitization Activity:
Annuitizations...................... $ 16,672 $ 27,927 $ -- $ -- $ 9,873 $ 303,841
Annuity payments and contract
charges............................ (7,291) -- (10,989) -- (159,462) (162,696)
Net transfers between
Sub-Accounts....................... 9,915 -- 78,757 -- -- (142,264)
Adjustment to annuity reserve....... (2,791) 1 5,357 -- 49,038 (338)
------------ ------------ ------------ ----------- ------------- -------------
Net annuitization activity........ $ 16,505 $ 27,928 $ 73,125 $ -- $ (100,551) $ (1,457)
------------ ------------ ------------ ----------- ------------- -------------
Increase in net assets from
participant transactions............. $ 12,471,076 $ 19,306,007 $ 20,359,826 $ 2,988,451 $ (4,686,607) $ 11,387,627
------------ ------------ ------------ ----------- ------------- -------------
Increase in net assets.............. $ 20,454,708 $ 18,541,060 $ 22,864,299 $ 3,003,118 $ 12,913,795 $ 3,569,548
NET ASSETS:
Beginning of year..................... 21,338,799 2,797,739 3,003,118 -- 125,436,464 121,866,916
------------ ------------ ------------ ----------- ------------- -------------
End of year........................... $ 41,793,507 $ 21,338,799 $ 25,867,417 $ 3,003,118 $ 138,350,259 $ 125,436,464
------------ ------------ ------------ ----------- ------------- -------------
------------ ------------ ------------ ----------- ------------- -------------
</TABLE>
*For the period from November 7, 1994 (commencement of investment operations) to
December 31, 1994.
See notes to financial statements
10
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
WGR WTR
Sub-Account Sub-Account Total
---------------------------- -------------------------- ---------------------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
---------------------------- -------------------------- ---------------------------------
1995 1994 1995 1994* 1995 1994
------------- ------------ ------------ ----------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(expense)....................... $ 1,467,987 $ (890,634) $ (87,058) $ (1,446) $ 58,912,960 $ 83,894,299
Net realized gains............... 871,201 1,495,414 62,601 63 33,713,632 24,213,615
Net unrealized gains (losses).... 14,693,578 (1,584,010) 1,020,693 4,178 460,667,644 (175,993,137)
------------- ------------ ------------ ----------- --------------- ---------------
Increase (decrease) in net
assets from operations........ $ 17,032,766 $ (979,230) $ 996,236 $ 2,795 $ 553,294,236 $ (67,885,223)
------------- ------------ ------------ ----------- --------------- ---------------
PARTICIPANT TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 27,109,744 $ 62,712,792 $ 10,064,130 $ 756,005 $ 743,077,138 $ 836,393,946
Net transfers between
Sub-Accounts and Fixed
Account....................... 5,024,725 21,605,891 1,710,064 626,641 (2,514,452) (94,120,240)
Withdrawals, surrenders,
annuitizations and contract
charges....................... (7,221,767) (3,238,104) (505,397) (1,410) (204,045,401) (145,635,926)
------------- ------------ ------------ ----------- --------------- ---------------
Net accumulation activity.... $ 24,912,702 $ 81,080,579 $ 11,268,797 $ 1,381,236 $ 536,517,285 $ 596,637,780
------------- ------------ ------------ ----------- --------------- ---------------
Annuitization Activity:
Annuitizations................. $ 398,205 $ 139,258 $ 141,543 $ -- $ 3,662,293 $ 3,035,664
Annuity payments and contract
charges....................... (48,306) (9,292) (6,755) -- (1,663,675) (1,328,282)
Net transfers between
Sub-Accounts.................. 6,845 36,542 (394) -- (14,834) --
Adjustment to annuity
reserve....................... 42,104 (4,670) 15,473 -- 252,645 2,406
------------- ------------ ------------ ----------- --------------- ---------------
Net annuitization activity... $ 398,848 $ 161,838 $ 149,867 $ -- $ 2,236,429 $ 1,709,788
------------- ------------ ------------ ----------- --------------- ---------------
Increase in net assets from
participant transactions........ $ 25,311,550 $ 81,242,417 $ 11,418,664 $ 1,381,236 $ 538,753,714 $ 598,347,568
------------- ------------ ------------ ----------- --------------- ---------------
Increase in net assets......... $ 42,344,316 $ 80,263,187 $ 12,414,900 $ 1,384,031 $ 1,092,047,950 $ 530,462,345
NET ASSETS:
Beginning of year................ 99,153,314 18,890,127 1,384,031 -- 2,195,520,785 1,665,058,440
------------- ------------ ------------ ----------- --------------- ---------------
End of year...................... $ 141,497,630 $ 99,153,314 $ 13,798,931 $ 1,384,031 $ 3,287,568,735 $ 2,195,520,785
------------- ------------ ------------ ----------- --------------- ---------------
------------- ------------ ------------ ----------- --------------- ---------------
</TABLE>
*For the period from November 7, 1994 (commencement of investment operations) to
December 31, 1994.
See notes to financial statements
11
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life of Canada (U.S.) Variable Account F (the "Variable Account"), a
separate account of Sun Life Assurance Company of Canada (U.S.), the Sponsor,
was established on July 13, 1989 as a funding vehicle for the variable portion
of certain group combination fixed/variable annuity contracts. 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"), an open-end management investment company registered
under the Investment Company Act of 1940. Massachusetts Financial Services
Company, a wholly-owned subsidiary of the Sponsor, is investment adviser to the
Series Trust.
(2) SIGNIFICANT ACCOUNTING POLICIES
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 subject to
tax.
(3) CONTRACT CHARGES
A mortality and expense risk charge based on the value of the Variable Account
is deducted from the Variable Account at the end of each valuation period for
the mortality and expense risks assumed by the Sponsor. The 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") equal to the lesser of $30 or 2% of the participant's account value is
deducted from the participant's account to reimburse the Sponsor for certain
administrative expenses. After the annuity commencement date the Account Fee
will be deducted pro rata from each variable annuity payment made during the
year.
12
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
The Sponsor does not deduct a sales charge from purchase payments. However, a
withdrawal charge (contingent deferred sales charge) of up to 6% of certain
amounts withdrawn, when applicable, may be deducted to cover certain expenses
relating to the sale of the contracts and certificates.
For assuming the risk that withdrawal charges may be insufficient to compensate
it for the costs of distributing the MFS Regatta contracts, the Sponsor makes a
deduction from the Variable Account at the end of each valuation period for the
first seven account years at an effective annual rate of 0.15% of the net assets
attributable to such contracts. No deduction for the distribution expense charge
is made after the seventh account anniversary.
As reimbursement for administrative expenses attributable to MFS Regatta Gold
contracts which exceed the revenues received from the Account Fees described on
the preceding page derived from such contracts, the Sponsor makes a deduction
from the Variable Account at the end of each valuation period at an effective
annual rate of 0.15% of the net assets attributable to such contracts.
(4) ANNUITY RESERVES
Annuity reserves are calculated using the 1983 Individual Annuitant Mortality
Table and an assumed interest rate of 4% or 3%, as stated in each participant's
contract. Required adjustments to the reserves are accomplished by transfers to
or from the Sponsor.
13
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS
<TABLE>
<CAPTION>
Units Transferred
Between Sub-Accounts and
Units Outstanding Fixed Accumulation
Beginning of Year Units Purchased Account
---------------------- ---------------------- -------------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
---------------------- ---------------------- -------------------------
1995 1994 1995 1994 1995 1994
---------- ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
MFS REGATTA CONTRACTS
------------------------------
CAS Sub-Account............... 6,184,731 7,272,302 8,683 9,333 1,002,774 (455,183)
GSS Sub-Account............... 4,235,203 4,708,841 48 10,633 (289,212) (21,084)
HYS Sub-Account............... 839,825 1,087,265 -- -- 332,946 (47,560)
MSS Sub-Account............... 2,066,642 2,431,072 12,503 1,536 206,072 (134,616)
MMS Sub-Account............... 3,873,044 3,081,737 6,171 4,866 315,466 1,706,748
TRS Sub-Account............... 14,225,539 15,806,723 4,093 10,133 117,384 (92,067)
WGS Sub-Account............... 1,967,375 2,300,611 -- 2,332 (87,581) (73,063)
MFS REGATTA GOLD CONTRACTS
------------------------------
CAS Sub-Account............... 19,909,649 13,245,124 7,106,728 9,091,150 2,287,026 (1,559,101)
CGS Sub-Account............... 10,979,711 6,412,270 5,181,021 4,513,854 1,359,507 483,956
EGS Sub-Account............... -- -- 2,978,021 -- 2,420,603 --
FCG Sub-Account............... -- -- 414,060 -- 301,717 --
GSS Sub-Account............... 18,784,262 13,661,303 3,836,496 7,175,667 (3,241,260) (868,594)
HYS Sub-Account............... 4,605,818 3,599,473 1,439,990 1,996,981 1,286,018 (717,869)
MSS Sub-Account............... 6,351,641 4,525,423 2,269,426 2,365,855 411,655 (238,446)
MMS Sub-Account............... 14,774,386 6,055,673 16,108,059 16,275,632 (11,138,037) (6,440,721)
RES Sub-Account............... 392,528 -- 3,726,811 124,868 1,346,160 269,642
TRS Sub-Account............... 48,270,556 32,979,812 8,512,923 18,470,599 (391,980) (520,442)
UTS Sub-Account............... 2,273,439 279,796 1,164,148 1,824,507 204,917 258,454
WAA Sub-Account............... 299,210 -- 1,294,348 145,953 590,509 153,647
WGR Sub-Account............... 9,182,555 1,778,644 2,422,350 5,802,910 475,925 1,954,152
WGS Sub-Account............... 8,334,019 7,008,613 981,591 3,238,912 (532,375) (1,467,047)
WTR Sub-Account............... 138,126 -- 922,160 75,613 159,909 62,654
</TABLE>
14
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
Units Withdrawn,
Surrendered and Units Outstanding
Annuitized End of Year
------------------------- ----------------------
Year Ended Year Ended
December 31, December 31,
------------------------- ----------------------
1995 1994 1995 1994
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
MFS REGATTA CONTRACTS
------------------------------
CAS Sub-Account............... (580,981) (641,721) 6,615,207 6,184,731
GSS Sub-Account............... (410,887) (463,187) 3,535,152 4,235,203
HYS Sub-Account............... (104,359) (199,880) 1,068,412 839,825
MSS Sub-Account............... (134,856) (231,350) 2,150,361 2,066,642
MMS Sub-Account............... (740,774) (920,307) 3,453,907 3,873,044
TRS Sub-Account............... (1,240,019) (1,499,250) 13,106,997 14,225,539
WGS Sub-Account............... (149,792) (262,505) 1,730,002 1,967,375
MFS REGATTA GOLD CONTRACTS
------------------------------
CAS Sub-Account............... (1,520,664) (867,524) 27,782,739 19,909,649
CGS Sub-Account............... (807,653) (430,369) 16,712,586 10,979,711
EGS Sub-Account............... (52,520) -- 5,346,104 --
FCG Sub-Account............... (4,598) -- 711,179 --
GSS Sub-Account............... (1,296,912) (1,184,114) 18,082,586 18,784,262
HYS Sub-Account............... (451,746) (272,767) 6,880,080 4,605,818
MSS Sub-Account............... (489,853) (301,191) 8,542,869 6,351,641
MMS Sub-Account............... (2,558,367) (1,116,198) 17,186,041 14,774,386
RES Sub-Account............... (124,339) (1,982) 5,341,160 392,528
TRS Sub-Account............... (3,299,751) (2,659,413) 53,091,748 48,270,556
UTS Sub-Account............... (232,457) (89,318) 3,410,047 2,273,439
WAA Sub-Account............... (43,026) (390) 2,141,041 299,210
WGR Sub-Account............... (659,139) (353,151) 11,421,691 9,182,555
WGS Sub-Account............... (510,377) (446,459) 8,272,858 8,334,019
WTR Sub-Account............... (49,609) (141) 1,170,586 138,126
</TABLE>
15
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Participants in Sun Life of Canada (U.S.) Variable Account F
and the Board of Directors of Sun Life Assurance Company of Canada (U.S.):
We have audited the accompanying statement of condition of Sun Life of Canada
(U.S.) Variable Account F (the "Variable Account") as of December 31, 1995, the
related statement of operations for the year then ended and the statements of
changes in net assets for the years ended December 31, 1995 and 1994. 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 with the custodian of securities held for the Variable Account as
of December 31, 1995. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Variable Account as of December 31,
1995, the results of its operations and the changes in its net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 2, 1996
----------------------------------------
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.
16
<PAGE>
MFS REGATTA
MFS REGATTA GOLD
DIRECTORS AND OFFICERS OF
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
JOHN D. McNEIL, Chairman and Director
JOHN R. GARDNER, President and Director
DAVID D. HORN, Senior Vice President and
General Manager and Director
RICHARD B. BAILEY, Director
A. KEITH BRODKIN, Director
M. COLYER CRUM, Director
JOHN S. LANE, Director
ANGUS A. MacNAUGHTON, Director
BONNIE S. ANGUS, Secretary
L. BROCK THOMSON, Vice President
and Treasurer
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
ANNUITY SERVICE MAILING ADDRESS:
Sun Life Annuity Service Center
P.O. Box 1024, Boston, Massachusetts 02103-9986
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
500 Boylston Street, Boston, Massachusetts 02116-3741
LEGAL COUNSEL
Covington & Burling
1201 Pennsylvania Avenue, N.W.
P.O. Box 7566, Washington, D.C. 20044-7566
AUDITORS
Deloitte & Touche LLP
125 Summer Street, Boston, Massachusetts 02110-1616
ACCOUNT INFORMATION
For account information, please call toll free:
1-800-752-7218 anytime from a touch-tone telephone.
To speak with a customer service representative,
please call toll free: 1-800-752-7215 any business
day from 8 a.m. to 6 p.m. Eastern time.
GOLD-2 2/96 93M
[REGATTA LOGO]
&
ANNUAL REPORT - DECEMBER 31, 1995
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.),
A WHOLLY-OWNED SUBSIDIARY OF
SUN LIFE ASSURANCE COMPANY OF CANADA
