<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN 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
--------------------------------- Percent Change
December 31, 1998 June 30, 1999 in Unit Value
----------------- ------------- --------------
<S> <C> <C> <C>
MFS REGATTA CONTRACTS:
Capital Appreciation Series -- Level
1.................................... $38.0799 $ 40.9604 7.56%
Capital Appreciation Series -- Level
2.................................... 15.3711 16.5459 7.64
Government Securities Series -- Level
1.................................... 17.8992 17.4053 (2.76)
Government Securities Series -- Level
2.................................... 11.4928 11.1839 (2.69)
High Yield Series -- Level 1.......... 21.8836 22.8235 4.30
High Yield Series -- Level 2.......... 11.1015 11.5868 4.37
Managed Sectors Series -- Level 1..... 30.2227 34.7930 15.12
Managed Sectors Series -- Level 2..... 13.6177 15.6885 15.21
Money Market Series -- Level 1........ 13.6495 13.8490 1.46
Money Market Series -- Level 2........ 10.7906 10.9564 1.54
Total Return Series -- Level 1........ 26.5642 27.6839 4.22
Total Return Series -- Level 2........ 13.3189 13.8905 4.29
Global Governments Series -- Level
1.................................... 18.6916 17.2332 (7.80)
Global Governments Series -- Level
2.................................... 11.2037 10.3372 (7.73)
MFS REGATTA GOLD CONTRACTS:
Bond Series........................... $10.5921 $ 10.3459 (2.32)%
Capital Appreciation Series........... 34.7871 37.4186 7.56
Capital Opportunities Series.......... 17.2085 20.2105 17.44
Massachusetts Investors Trust
Series............................... 31.7109 33.3635 5.21
Emerging Growth Series................ 23.0408 25.6276 11.23
Equity Income Series.................. 10.4065 11.3314 8.89
MFS/Foreign & Colonial Emerging
Markets Equity Series................ 7.4615 9.5784 28.37
International Growth Series........... 9.5047 9.8016 3.12
International Growth and Income
Series............................... 13.1538 13.0070 (1.12)
Government Securities Series.......... 15.0941 14.6776 (2.76)
High Yield Series..................... 18.0207 18.7947 4.30
Managed Sectors Series................ 25.4406 29.2878 15.12
Massachusetts Investors Growth Stock
Series............................... 11.9635 13.1831 10.19
Money Market Series................... 12.2282 12.4069 1.46
New Discovery Series.................. 10.5258 11.5330 9.57
Research Series....................... 23.7119 25.6757 8.28
Research Growth and Income Series..... 13.1605 14.1862 7.79
Research International Series......... 9.3330 10.3917 11.34
Strategic Income Series............... 9.9530 10.0865 1.34
Total Return Series................... 22.1273 23.0600 4.22
Utilities Series...................... 22.0489 24.0840 9.23
Global Asset Allocation Series........ 15.8203 16.2775 2.89
Global Governments Series............. 15.2422 14.0530 (7.80)
Global Growth Series.................. 17.6676 19.8782 12.51
Global Total Return Series............ 17.1741 16.9788 (1.14)
</TABLE>
1
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY -- continued
<TABLE>
<CAPTION>
Unit Value
--------------------------------- Percent Change
December 31, 1998 June 30, 1999 in Unit Value
----------------- ------------- --------------
<S> <C> <C> <C>
MFS REGATTA CLASSIC CONTRACTS:
Bond Series........................... $10.4200 $ 10.1902 (2.20)%
Capital Appreciation Series........... 15.2806 16.4566 7.70
Capital Opportunities Series.......... 15.9773 18.7875 17.59
Massachusetts Investors Trust
Series............................... 15.7220 16.5616 5.34
Emerging Growth Series................ 15.2416 16.9734 11.36
Equity Income Series.................. 10.6318 11.5908 9.02
MFS/Foreign & Colonial Emerging
Markets Equity Series................ 7.8620 10.1049 28.53
International Growth Series........... 9.8139 10.1328 3.25
International Growth and Income
Series............................... 12.7274 12.6007 (1.00)
Government Securities Series.......... 11.5012 11.1976 (2.64)
High Yield Series..................... 11.2212 11.7175 4.42
Managed Sectors Series................ 13.2363 15.2565 15.26
Massachusetts Investors Growth Stock
Series............................... 11.9830 13.2207 10.33
Money Market Series................... 10.7995 10.9708 1.59
New Discovery Series.................. 10.5430 11.5659 9.70
Research Series....................... 14.3354 15.5416 8.41
Research Growth and Income Series..... 12.9744 14.0026 7.93
Research International Series......... 11.0101 12.2739 11.48
Strategic Income Series............... 9.8850 10.0298 1.46
Total Return Series................... 13.1773 13.7495 4.34
Utilities Series...................... 14.8587 16.2500 9.36
Global Asset Allocation Series........ 11.5822 11.9315 3.02
Global Governments Series............. 11.4588 10.5777 (7.69)
Global Growth Series.................. 12.8959 14.5273 12.65
Global Total Return Series............ 13.0681 12.9353 (1.02)
</TABLE>
2
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY -- continued
<TABLE>
<CAPTION>
Unit Value
--------------------------------- Percent Change
December 31, 1998 June 30, 1999 in Unit Value
----------------- ------------- --------------
<S> <C> <C> <C>
MFS REGATTA PLATINUM CONTRACTS:
Bond Series........................... $10.4201 $ 10.1769 (2.33)%
Capital Appreciation Series........... 11.3405 12.1971 7.55
Capital Opportunities Series.......... 10.8048 12.6885 17.43
Massachusetts Investors Trust
Series............................... 10.7939 11.3553 5.20
Emerging Growth Series................ 11.5819 12.8809 11.22
Equity Income Series.................. 10.5234 11.4575 8.88
MFS/Foreign & Colonial Emerging
Markets Equity Series................ 8.1616 10.4761 28.36
International Growth Series........... 9.3254 9.6157 3.11
International Growth and Income
Series............................... 10.3378 10.2215 (1.13)
Government Securities Series.......... 10.4116 10.1233 (2.77)
High Yield Series..................... 9.5030 9.9102 4.28
Managed Sectors Series................ 10.5861 12.1858 15.11
Massachusetts Investors Growth Stock
Series............................... 11.9094 13.1222 10.18
Money Market Series................... 10.1878 10.3357 1.45
New Discovery Series.................. 10.4124 11.4076 9.56
Research Series....................... 11.0189 11.9303 8.27
Research Growth and Income Series..... 10.3415 11.1464 7.78
Research International Series......... 9.4845 10.5593 11.33
Strategic Income Series............... 9.8713 10.0027 1.33
Total Return Series................... 10.2907 10.7234 4.21
Utilities Series...................... 10.9233 11.9304 9.22
Global Asset Allocation Series........ 9.7081 9.9877 2.88
Global Governments Series............. 11.2639 10.3841 (7.81)
Global Growth Series.................. 10.2820 11.5674 12.50
Global Total Return Series............ 10.4567 10.3368 (1.15)
</TABLE>
3
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- June 30, 1999
<TABLE>
<CAPTION>
Assets:
<S> <C> <C> <C>
Investments in MFS/Sun Life Series Trust: Shares Cost Value
----------- -------------- ---------------
Bond Series ("BDS")......................................................... 3,637,333 $ 38,475,487 $ 37,698,305
Capital Appreciation Series ("CAS")......................................... 34,722,428 1,348,989,430 1,534,554,685
Capital Opportunities Series ("COS")........................................ 13,376,525 201,158,483 262,608,902
Massachusetts Investors Trust Series ("MIT")................................ 53,107,843 1,614,193,080 1,991,924,206
Emerging Growth Series ("EGS").............................................. 31,911,923 574,119,163 818,799,400
Equity Income Series ("EIS")................................................ 1,978,396 21,007,115 22,720,504
MFS/Foreign & Colonial Emerging Markets Equity Series ("FCE")............... 2,679,445 24,639,074 25,940,292
International Growth Series ("FCI")......................................... 4,218,576 41,645,183 42,412,235
International Growth and Income Series ("FCG").............................. 5,999,599 74,307,290 76,273,477
Government Securities Series ("GSS")........................................ 34,393,341 445,339,546 428,448,437
High Yield Series ("HYS")................................................... 33,284,498 313,946,620 294,998,405
Managed Sectors Series ("MSS").............................................. 11,410,987 312,163,302 373,602,016
Massachusetts Investors Growth Stock Series ("MIS")......................... 19,124,069 226,538,003 252,116,235
Money Market Series ("MMS")................................................. 432,944,328 432,944,328 432,944,328
New Discovery Series ("NWD")................................................ 2,205,744 21,759,459 25,670,241
Research Series ("RES")..................................................... 43,233,382 799,150,510 1,048,481,230
Research Growth and Income Series ("RGS")................................... 4,303,641 55,848,079 62,352,174
Research International Series ("RSS")....................................... 726,445 6,882,032 7,668,634
Strategic Income Series ("SIS")............................................. 1,323,081 13,130,449 13,247,356
Total Return Series ("TRS")................................................. 97,932,534 1,834,668,392 1,874,953,710
Utilities Series ("UTS").................................................... 16,192,500 245,264,131 269,190,976
Global Asset Allocation Series ("GAA")...................................... 8,207,538 116,342,756 116,152,058
Global Governments Series ("GGS")........................................... 7,506,904 84,699,373 76,198,613
Global Growth Series ("GGR")................................................ 16,495,030 230,837,073 281,025,925
Global Total Return Series ("GTR").......................................... 6,362,501 92,048,906 97,239,817
-------------- ---------------
$9,170,097,264 $10,467,222,161
--------------
--------------
Liability:
Payable to Sponsor......................................................................................... (568,448)
---------------
Net Assets........................................................................................... $10,466,653,713
---------------
---------------
</TABLE>
<TABLE>
<CAPTION>
Applicable to Owners of Reserve
Deferred Variable Annuity Contracts for
------------------------------------- Variable
NET ASSETS APPLICABLE TO CONTRACT OWNERS: Units Unit Value Value Annuities Total
---------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA CONTRACTS:
CAS -- Level 1......................... 71,902 $40.9604 $ 2,954,121 $ 91,383 $ 3,045,504
CAS -- Level 2......................... 8,591,078 16.5459 142,001,876 819,588 142,821,464
GSS -- Level 1......................... 30,207 17.4053 539,470 82,561 622,031
GSS -- Level 2......................... 2,939,993 11.1839 32,864,312 171,176 33,035,488
HYS -- Level 1......................... 7,655 22.8235 181,406 4,348 185,754
HYS -- Level 2......................... 1,223,626 11.5868 14,183,251 76,858 14,260,109
MSS -- Level 1......................... 17,710 34.7930 473,885 -- 473,885
MSS -- Level 2......................... 2,642,045 15.6885 41,542,210 129,997 41,672,207
MMS -- Level 1......................... 41,889 13.8490 771,161 28,139 799,300
MMS -- Level 2......................... 3,826,966 10.9564 41,686,471 193,544 41,880,015
TRS -- Level 1......................... 179,091 27.6839 4,974,700 522,568 5,497,268
TRS -- Level 2......................... 11,406,841 13.8905 158,381,312 682,190 159,063,502
GGS -- Level 1......................... 4,601 17.2332 90,648 -- 90,648
GGS -- Level 2......................... 734,498 10.3372 7,580,078 78,170 7,658,248
------------ ---------- ------------
$448,224,901 $2,880,522 $451,105,423
------------ ---------- ------------
</TABLE>
See notes to financial statements
4
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- June 30, 1999 -- continued
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
NET ASSETS APPLICABLE TO CONTRACT OWNERS --------------------------------------- Variable
(CONTINUED): Units Unit Value Value Annuities Total
---------- ---------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA GOLD CONTRACTS:
BDS.................................... 1,954,277 $10.3459 $ 20,219,554 $ 136,383 $ 20,355,937
CAS.................................... 34,806,268 37.4186 1,302,206,833 6,564,012 1,308,770,845
COS.................................... 11,221,330 20.2105 226,800,157 359,166 227,159,323
MIT.................................... 52,331,209 33.3635 1,745,892,927 5,407,332 1,751,300,259
EGS.................................... 28,623,308 25.6276 733,086,601 1,364,738 734,451,339
EIS.................................... 1,010,034 11.3314 11,445,019 -- 11,445,019
FCE.................................... 2,423,602 9.5784 23,212,574 22,563 23,235,137
FCI.................................... 3,242,657 9.8016 31,784,980 52,421 31,837,401
FCG.................................... 5,024,824 13.0070 65,351,576 84,015 65,435,591
GSS.................................... 24,304,156 14.6776 356,777,798 1,049,405 357,827,203
HYS.................................... 13,323,465 18.7947 250,412,465 814,141 251,226,606
MSS.................................... 10,880,945 29.2878 318,335,564 976,012 319,311,576
MIS.................................... 8,952,271 13.1831 118,015,384 165,760 118,181,144
MMS.................................... 28,459,899 12.4069 353,168,814 2,095,939 355,264,753
NWD.................................... 1,108,450 11.5330 12,783,789 68,703 12,852,492
RES.................................... 37,610,271 25.6757 965,092,677 2,605,506 967,698,183
RGS.................................... 3,234,096 14.1862 45,880,134 130,872 46,011,006
RSS.................................... 333,891 10.3917 3,470,621 -- 3,470,621
SIS.................................... 812,906 10.0865 8,199,015 -- 8,199,015
TRS.................................... 68,505,417 23.0600 1,579,580,031 4,841,904 1,584,421,935
UTS.................................... 9,472,451 24.0840 228,129,699 694,909 228,824,608
GAA.................................... 6,818,247 16.2775 111,009,164 594,235 111,603,399
GGS.................................... 4,672,120 14.0530 65,671,782 410,636 66,082,418
GGR.................................... 13,714,516 19.8782 272,621,776 681,012 273,302,788
GTR.................................... 5,264,394 16.9788 89,385,521 479,181 89,864,702
-------------- ----------- --------------
$8,938,534,455 $29,598,845 $8,968,133,300
-------------- ----------- --------------
</TABLE>
See notes to financial statements
5
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- June 30, 1999 -- continued
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
NET ASSETS APPLICABLE TO CONTRACT OWNERS ------------------------------------ Variable
(CONTINUED): Units Unit Value Value Annuities Total
--------- ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA CLASSIC CONTRACTS:
BDS.................................... 63,331 $10.1902 $ 645,343 $-- $ 645,343
CAS.................................... 515,762 16.4566 8,485,531 -- 8,485,531
COS.................................... 392,789 18.7875 7,373,730 -- 7,373,730
MIT.................................... 1,261,112 16.5616 20,877,797 653 20,878,450
EGS.................................... 1,132,870 16.9734 19,224,859 -- 19,224,859
EIS.................................... 71,923 11.5908 833,528 -- 833,528
FCE.................................... 54,938 10.1049 555,342 -- 555,342
FCI.................................... 156,616 10.1328 1,586,910 -- 1,586,910
FCG.................................... 760,309 12.6007 5,596,740 -- 5,596,740
GSS.................................... 284,110 11.1976 3,187,564 -- 3,187,564
HYS.................................... 315,483 11.7175 3,695,369 -- 3,695,369
MSS.................................... 219,010 15.2565 3,340,559 -- 3,340,559
MIS.................................... 287,046 13.2207 3,796,559 -- 3,796,559
MMS.................................... 827,279 10.9708 9,075,351 -- 9,075,351
NWD.................................... 62,548 11.5659 723,713 -- 723,713
RES.................................... 938,558 15.5416 14,583,910 -- 14,583,910
RGS.................................... 71,411 14.0026 999,613 -- 999,613
RSS.................................... 7,485 12.2739 91,885 -- 91,885
SIS.................................... 7,004 10.0298 70,265 -- 70,265
TRS.................................... 1,967,508 13.7495 27,052,362 1,279 27,053,641
UTS.................................... 239,055 16.2500 3,878,172 -- 3,878,172
GAA.................................... 47,160 11.9315 563,274 -- 563,274
GGS.................................... 49,697 10.5777 525,641 -- 525,641
GGR.................................... 121,402 14.5273 1,762,714 -- 1,762,714
GTR.................................... 113,233 12.9353 1,464,349 633 1,464,982
------------ ----------- ------------
$139,991,080 $2,565 $139,993,645
------------ ----------- ------------
</TABLE>
See notes to financial statements
6
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- June 30, 1999 -- continued
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
NET ASSETS APPLICABLE TO CONTRACT OWNERS ---------------------------------------- Variable
(CONTINUED): Units Unit Value Value Annuities Total
---------- ---------- --------------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA PLATINUM CONTRACTS:
BDS.................................... 1,639,521 $10.1769 $ 16,685,891 $ -- $ 16,685,891
CAS.................................... 5,839,478 12.1971 71,224,140 106,587 71,330,727
COS.................................... 2,210,081 12.6885 28,041,655 15,099 28,056,754
MIT.................................... 19,347,027 11.3553 219,692,788 217,253 219,910,041
EGS.................................... 5,057,423 12.8809 65,164,696 52,295 65,216,991
EIS.................................... 911,400 11.4575 10,441,957 -- 10,441,957
FCE.................................... 205,043 10.4761 2,148,043 -- 2,148,043
FCI.................................... 933,362 9.6157 8,975,574 13,389 8,988,963
FCG.................................... 508,290 10.2215 5,195,290 35,368 5,230,658
GSS.................................... 3,333,627 10.1233 33,749,125 142,217 33,891,342
HYS.................................... 2,578,564 9.9102 25,553,980 32,523 25,586,503
MSS.................................... 714,433 12.1858 8,706,276 22,141 8,728,417
MIS.................................... 9,905,107 13.1222 129,975,662 159,775 130,135,437
MMS.................................... 2,455,017 10.3357 25,376,851 125,241 25,502,092
NWD.................................... 1,057,641 11.4076 12,065,157 26,201 12,091,358
RES.................................... 5,537,957 11.9303 66,068,810 156,838 66,225,648
RGS.................................... 1,371,945 11.1464 15,292,110 44,701 15,336,811
RSS.................................... 388,852 10.5593 4,106,128 -- 4,106,128
SIS.................................... 497,652 10.0027 4,978,076 -- 4,978,076
TRS.................................... 9,147,456 10.7234 98,086,124 498,126 98,584,250
UTS.................................... 3,059,413 11.9304 36,511,488 10,253 36,521,741
GAA.................................... 397,603 9.9877 3,970,892 -- 3,970,892
GGS.................................... 179,319 10.3841 1,861,812 -- 1,861,812
GGR.................................... 515,914 11.5674 5,967,665 -- 5,967,665
GTR.................................... 572,873 10.3368 5,922,523 625 5,923,148
--------------- ----------- ---------------
$ 905,762,713 $ 1,658,632 $ 907,421,345
--------------- ----------- ---------------
Net Assets..................................................... $10,432,513,149 $34,140,564 $10,466,653,713
--------------- ----------- ---------------
--------------- ----------- ---------------
</TABLE>
See notes to financial statements
7
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Six Months Ended June 30, 1999
<TABLE>
<CAPTION>
BDS CAS COS MIT
Sub-Account Sub-Account Sub-Account Sub-Account
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 456,185 $ 165,042,349 $ 5,266,721 $ 142,902,582
Mortality and expense risk
charges......................... (176,419) (8,937,238) (1,335,079) (11,258,247)
Distribution expense charges..... -- (4,823) -- --
Administrative expense charges... (21,170) (1,067,646) (160,210) (1,350,990)
------------ -------------- ------------ -------------
Net investment income
(loss)...................... $ 258,596 $ 155,032,642 $ 3,771,432 $ 130,293,345
------------ -------------- ------------ -------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 2,432,101 $ 223,832,236 $ 9,384,201 $ 79,159,962
Cost of investments sold....... (2,359,199) (167,869,057) (6,111,214) (37,650,911)
------------ -------------- ------------ -------------
Net realized gains
(losses).................... $ 72,902 $ 55,963,179 $ 3,272,987 $ 41,509,051
------------ -------------- ------------ -------------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ (777,182) $ 185,565,255 $ 61,450,419 $ 377,731,126
Beginning of period............ 286,002 287,338,195 32,482,750 452,834,707
------------ -------------- ------------ -------------
Change in unrealized
appreciation
(depreciation).............. $(1,063,184) $ (101,772,940) $ 28,967,669 $ (75,103,581)
------------ -------------- ------------ -------------
Realized and unrealized gains
(losses)...................... $ (990,282) $ (45,809,761) $ 32,240,656 $ (33,594,530)
------------ -------------- ------------ -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ (731,686) $ 109,222,881 $ 36,012,088 $ 96,698,815
------------ -------------- ------------ -------------
------------ -------------- ------------ -------------
<CAPTION>
EGS EIS
Sub-Account Sub-Account
------------- --------------
<S> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 12,001,600 $ 47,819
Mortality and expense risk
charges......................... (4,557,980) (88,515)
Distribution expense charges..... -- --
Administrative expense charges... (546,958) (10,622)
------------- --------------
Net investment income
(loss)...................... $ 6,896,662 $ (51,318)
------------- --------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 60,032,391 $ 3,048,292
Cost of investments sold....... (35,890,453) (2,678,412)
------------- --------------
Net realized gains
(losses).................... $ 24,141,938 $ 369,880
------------- --------------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ 244,680,237 $ 1,713,389
Beginning of period............ 194,893,156 595,356
------------- --------------
Change in unrealized
appreciation
(depreciation).............. $ 49,787,081 $ 1,118,033
------------- --------------
Realized and unrealized gains
(losses)...................... $ 73,929,019 $ 1,487,913
------------- --------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 80,825,681 $ 1,436,595
------------- --------------
------------- --------------
</TABLE>
See notes to financial statements
8
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Six Months Ended June 30, 1999 -- continued
<TABLE>
<CAPTION>
FCE FCI FCG GSS
Sub-Account Sub-Account Sub-Account Sub-Account
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ -- $ 216,261 $ 2,184,611 $ 21,618,169
Mortality and expense risk
charges......................... (120,314) (233,063) (424,325) (2,582,013)
Distribution expense charges..... -- -- -- (1,390)
Administrative expense charges... (14,438) (27,968) (50,919) (308,449)
------------ ------------ ------------- -------------
Net investment income
(loss)...................... $ (134,752) $ (44,770) $ 1,709,367 $ 18,726,317
------------ ------------ ------------- -------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 4,046,753 $ 4,018,279 $ 26,220,813 $ 53,983,946
Cost of investments sold....... (5,624,417) (4,017,333) (24,163,402) (53,743,672)
------------ ------------ ------------- -------------
Net realized gains
(losses).................... $(1,577,664) $ 946 $ 2,057,411 $ 240,274
------------ ------------ ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ 1,301,218 $ 767,052 $ 1,966,187 $ (16,891,109)
Beginning of period............ (5,357,496) (519,445) 6,495,614 14,106,863
------------ ------------ ------------- -------------
Change in unrealized
appreciation
(depreciation).............. $ 6,658,714 $ 1,286,497 $ (4,529,427) $ (30,997,972)
------------ ------------ ------------- -------------
Realized and unrealized gains
(losses)...................... $ 5,081,050 $ 1,287,443 $ (2,472,016) $ (30,757,698)
------------ ------------ ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 4,946,298 $ 1,242,673 $ (762,649) $ (12,031,381)
------------ ------------ ------------- -------------
------------ ------------ ------------- -------------
<CAPTION>
HYS MSS
Sub-Account Sub-Account
------------- ---------------
<S> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 24,714,356 $ --
Mortality and expense risk
charges......................... (1,856,501) (2,127,760)
Distribution expense charges..... (521) (1,632)
Administrative expense charges... (222,259) (253,700)
------------- ---------------
Net investment income
(loss)...................... $ 22,635,075 $ (2,383,092)
------------- ---------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 75,504,116 $ 47,960,737
Cost of investments sold....... (74,467,565) (41,720,309)
------------- ---------------
Net realized gains
(losses).................... $ 1,036,551 $ 6,240,428
------------- ---------------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ (18,948,215) $ 61,438,714
Beginning of period............ (7,980,287) 16,729,347
------------- ---------------
Change in unrealized
appreciation
(depreciation).............. $ (10,967,928) $ 44,709,367
------------- ---------------
Realized and unrealized gains
(losses)...................... $ (9,931,377) $ 50,949,795
------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 12,703,698 $ 48,566,703
------------- ---------------
------------- ---------------
</TABLE>
See notes to financial statements
9
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Six Months Ended June 30, 1999 -- continued
<TABLE>
<CAPTION>
MIS MMS NWD RES
Sub-Account Sub-Account Sub-Account Sub-Account
------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 3,086,853 $ 9,087,572 $ 133,720 $ 33,877,221
Mortality and expense risk
charges......................... (979,430) (2,575,525) (106,361) (5,989,522)
Distribution expense charges..... -- (1,068) -- --
Administrative expense charges... (117,531) (307,995) (12,763) (718,743)
------------ -------------- ------------ -------------
Net investment income
(loss)...................... $ 1,989,892 $ 6,202,984 $ 14,596 $ 27,168,956
------------ -------------- ------------ -------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 6,070,981 $ 269,486,589 $ 2,816,026 $ 60,408,373
Cost of investments sold....... (4,934,920) (269,486,589) (2,827,360) (34,926,241)
------------ -------------- ------------ -------------
Net realized gains
(losses).................... $ 1,136,061 $ -- $ (11,334) $ 25,482,132
------------ -------------- ------------ -------------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ 25,578,232 $ -- $ 3,910,782 $ 249,330,720
Beginning of period............ 11,412,175 -- 1,504,013 222,195,462
------------ -------------- ------------ -------------
Change in unrealized
appreciation
(depreciation).............. $ 14,166,057 $ -- $ 2,406,769 $ 27,135,258
------------ -------------- ------------ -------------
Realized and unrealized gains
(losses)...................... $ 15,302,118 $ -- $ 2,395,435 $ 52,617,390
------------ -------------- ------------ -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 17,292,010 $ 6,202,984 $ 2,410,031 $ 79,786,346
------------ -------------- ------------ -------------
------------ -------------- ------------ -------------
<CAPTION>
RGS RSS
Sub-Account Sub-Account
------------ -----------
<S> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 184,712 $ 1,911
Mortality and expense risk
charges......................... (293,935) (31,174)
Distribution expense charges..... -- --
Administrative expense charges... (35,272) (3,741)
------------ -----------
Net investment income
(loss)...................... $ (144,495) $ (33,004)
------------ -----------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 3,883,986 $ 782,416
Cost of investments sold....... (3,138,705) (802,791)
------------ -----------
Net realized gains
(losses).................... $ 745,281 $ (20,375)
------------ -----------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ 6,504,095 $ 786,602
Beginning of period............ 3,487,391 126,682
------------ -----------
Change in unrealized
appreciation
(depreciation).............. $ 3,016,704 $ 659,920
------------ -----------
Realized and unrealized gains
(losses)...................... $ 3,761,985 $ 639,545
------------ -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 3,617,490 $ 606,541
------------ -----------
------------ -----------
</TABLE>
See notes to financial statements
10
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Six Months Ended June 30, 1999 -- continued
<TABLE>
<CAPTION>
SIS TRS UTS GAA
Sub-Account Sub-Account Sub-Account Sub-Account
----------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 271,925 $ 269,625,863 $ 28,611,367 $ 6,409,039
Mortality and expense risk
charges......................... (64,500) (11,126,877) (1,426,681) (722,610)
Distribution expense charges..... -- (8,165) -- --
Administrative expense charges... (7,740) (1,327,060) (171,202) (86,713)
----------- -------------- ------------- -------------
Net investment income
(loss)...................... $ 199,685 $ 257,163,761 $ 27,013,484 $ 5,599,716
----------- -------------- ------------- -------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 836,100 $ 166,605,565 $ 13,375,620 $ 15,521,372
Cost of investments sold....... (817,159) (139,937,166) (8,297,383) (14,193,433)
----------- -------------- ------------- -------------
Net realized gains
(losses).................... $ 18,941 $ 26,668,399 $ 5,078,237 $ 1,327,939
----------- -------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ 116,907 $ 40,285,318 $ 23,926,845 $ (190,698)
Beginning of period............ 217,175 247,870,707 34,293,510 3,446,679
----------- -------------- ------------- -------------
Change in unrealized
appreciation
(depreciation).............. $(100,268) $ (207,585,389) $ (10,366,665) $ (3,637,377)
----------- -------------- ------------- -------------
Realized and unrealized gains
(losses)...................... $ (81,327) $ (180,916,990) $ (5,288,428) $ (2,309,438)
----------- -------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 118,358 $ 76,246,771 $ 21,725,056 $ 3,290,278
----------- -------------- ------------- -------------
----------- -------------- ------------- -------------
<CAPTION>
GGS GGR GTR
Sub-Account Sub-Account Sub-Account
------------- --------------- --------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 8,634,517 $ 10,725,752 $ 7,230,240
Mortality and expense risk
charges......................... (507,042) (1,630,230) (582,199)
Distribution expense charges..... (404) -- --
Administrative expense charges... (60,441) (195,628) (69,864)
------------- --------------- --------------
Net investment income
(loss)...................... $ 8,066,630 $ 8,899,894 $ 6,578,177
------------- --------------- --------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 13,225,435 $ 22,928,639 $ 7,430,764
Cost of investments sold....... (12,954,344) (17,028,116) (5,641,012)
------------- --------------- --------------
Net realized gains
(losses).................... $ 271,091 $ 5,900,523 $ 1,789,752
------------- --------------- --------------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ (8,500,760) $ 50,188,852 $ 5,190,911
Beginning of period............ 6,569,807 33,369,072 14,614,468
------------- --------------- --------------
Change in unrealized
appreciation
(depreciation).............. $ (15,070,567) $ 16,819,780 $(9,423,557)
------------- --------------- --------------
Realized and unrealized gains
(losses)...................... $ (14,799,476) $ 22,720,303 $(7,633,805)
------------- --------------- --------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ (6,732,846) $ 31,620,197 $(1,055,628)
------------- --------------- --------------
------------- --------------- --------------
</TABLE>
See notes to financial statements
11
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BDS
Sub-Account CAS
-------------------------- Sub-Account
Six Months --------------------------------
Ended Year Ended Six Months Year Ended
June 30, December 31, Ended December 31,
1999 1998(a) June 30, 1999 1998
------------ ------------ --------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 258,596 $ (82,271) $ 155,032,642 $ 128,215,244
Net realized gains (losses)...... 72,902 216,410 55,963,179 66,702,495
Net unrealized gains (losses).... (1,063,184) 286,002 (101,772,940) 121,369,200
------------ ------------ --------------- ---------------
Increase (Decrease) in net
assets from operations...... $ (731,686) $ 420,141 $ 109,222,881 $ 316,286,939
------------ ------------ --------------- ---------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 6,194,508 $ 9,875,456 $ 45,096,124 $ 107,933,141
Net transfers between
Sub-Accounts and Fixed
Account....................... 13,252,820 9,534,568 (25,804,298) 47,848,492
Withdrawals, surrenders,
annuitizations and contract
charges....................... (600,518) (395,676) (88,363,623) (114,794,853)
------------ ------------ --------------- ---------------
Net accumulation activity.... $18,846,810 $19,014,348 $ (69,071,797) $ 40,986,780
------------ ------------ --------------- ---------------
Annuitization Activity:
Annuitizations................. $ -- $ 164,170 $ 536,957 $ 1,220,067
Annuity payments and contract
charges....................... (11,575) (3,903) (697,655) (1,025,009)
Net Transfers between
Sub-Accounts.................. -- -- 109,831 (41,318)
Adjustments to annuity
reserves...................... 1,534 (12,668) (95,896) (88,123)
------------ ------------ --------------- ---------------
Net annuitization activity... $ (10,041) $ 147,599 $ (146,763) $ 65,617
------------ ------------ --------------- ---------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $18,836,769 $19,161,947 $ (69,218,560) $ 41,052,397
------------ ------------ --------------- ---------------
Increase (Decrease) in net
assets........................ $18,105,083 $19,582,088 $ 40,004,321 $ 357,339,336
NET ASSETS:
Beginning of period.............. 19,582,088 -- 1,494,449,750 1,137,110,414
------------ ------------ --------------- ---------------
End of period.................... $37,687,171 $19,582,088 $ 1,534,454,071 $ 1,494,449,750
------------ ------------ --------------- ---------------
------------ ------------ --------------- ---------------
<CAPTION>
COS
Sub-Account
----------------------------
Six Months Year Ended
Ended December 31,
June 30, 1999 1998
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 3,771,432 $ 3,637,491
Net realized gains (losses)...... 3,272,987 5,170,487
Net unrealized gains (losses).... 28,967,669 20,631,668
------------- -------------
Increase (Decrease) in net
assets from operations...... $ 36,012,088 $ 29,439,646
------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 15,780,659 $ 38,230,487
Net transfers between
Sub-Accounts and Fixed
Account....................... 31,363,632 40,051,430
Withdrawals, surrenders,
annuitizations and contract
charges....................... (7,939,219) (7,541,790)
------------- -------------
Net accumulation activity.... $ 39,205,072 $ 70,740,127
------------- -------------
Annuitization Activity:
Annuitizations................. $ 47,101 $ 142,386
Annuity payments and contract
charges....................... (30,001) (46,545)
Net Transfers between
Sub-Accounts.................. -- 25,440
Adjustments to annuity
reserves...................... (4,439) (10,400)
------------- -------------
Net annuitization activity... $ 12,661 $ 110,881
------------- -------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 39,217,733 $ 70,851,008
------------- -------------
Increase (Decrease) in net
assets........................ $ 75,229,821 $ 100,290,654
NET ASSETS:
Beginning of period.............. 187,359,986 87,069,332
------------- -------------
End of period.................... $262,589,807 $ 187,359,986
------------- -------------
------------- -------------
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
12
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MIT EGS
Sub-Account Sub-Account
--------------------------------- ----------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1999 1998 June 30, 1999 1998
---------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 130,293,345 $ 74,447,584 $ 6,896,662 $ 11,234,121
Net realized gains (losses)...... 41,509,051 33,652,751 24,141,938 22,519,902
Net unrealized gains (losses).... (75,103,581) 167,450,974 49,787,081 124,900,453
---------------- --------------- ------------- -------------
Increase (Decrease) in net
assets from operations...... $ 96,698,815 $ 275,551,309 $ 80,825,681 $ 158,654,476
---------------- --------------- ------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 117,256,244 $ 265,107,890 $ 35,340,678 $ 90,838,283
Net transfers between
Sub-Accounts and Fixed
Account....................... 122,522,797 206,082,223 31,088,753 40,488,353
Withdrawals, surrenders,
annuitizations and contract
charges....................... (71,478,311) (88,307,981) (29,337,164) (30,769,813)
---------------- --------------- ------------- -------------
Net accumulation activity.... $ 168,300,730 $ 382,882,132 $ 37,092,267 $ 100,556,823
---------------- --------------- ------------- -------------
Annuitization Activity:
Annuitizations................. $ 678,257 $ 2,012,633 $ 141,579 $ 453,478
Annuity payments and contract
charges....................... (358,133) (713,563) (107,359) (113,219)
Net transfers between
Sub-Accounts.................. (31,686) (116,539) 300 (5,495)
Adjustments to annuity
reserves...................... (90,973) 265,082 (6,772) 128,245
---------------- --------------- ------------- -------------
Net annuitization activity... $ 197,465 $ 1,447,613 $ 27,748 $ 463,009
---------------- --------------- ------------- -------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 168,498,195 $ 384,329,745 $ 37,120,015 $ 101,019,832
---------------- --------------- ------------- -------------
Increase (Decrease) in net
assets........................ $ 265,197,010 $ 659,881,054 $117,945,696 $ 259,674,308
NET ASSETS:
Beginning of period.............. 1,726,891,740 1,067,010,686 700,947,493 441,273,185
---------------- --------------- ------------- -------------
End of period.................... $ 1,992,088,750 $ 1,726,891,740 $818,893,189 $ 700,947,493
---------------- --------------- ------------- -------------
---------------- --------------- ------------- -------------
<CAPTION>
EIS
Sub-Account
---------------------------
Six Months Year Ended
Ended December 31,
June 30, 1999 1998(a)
------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ (51,318) $ (31,884)
Net realized gains (losses)...... 369,880 (117,486)
Net unrealized gains (losses).... 1,118,033 595,356
------------- ------------
Increase (Decrease) in net
assets from operations...... $ 1,436,595 $ 445,986
------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 4,586,252 $4,758,335
Net transfers between
Sub-Accounts and Fixed
Account....................... 8,781,205 3,493,264
Withdrawals, surrenders,
annuitizations and contract
charges....................... (575,305) (205,828)
------------- ------------
Net accumulation activity.... $12,792,152 $8,045,771
------------- ------------
Annuitization Activity:
Annuitizations................. $ -- $ --
Annuity payments and contract
charges....................... -- --
Net transfers between
Sub-Accounts.................. -- --
Adjustments to annuity
reserves...................... -- --
------------- ------------
Net annuitization activity... $ -- $ --
------------- ------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $12,792,152 $8,045,771
------------- ------------
Increase (Decrease) in net
assets........................ $14,228,747 $8,491,757
NET ASSETS:
Beginning of period.............. 8,491,757 --
------------- ------------
End of period.................... $22,720,504 $8,491,757
------------- ------------
------------- ------------
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
13
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
FCE FCI
Sub-Account Sub-Account
--------------------------- ---------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1999 1998 June 30, 1999 1998
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ (134,752) $ 467,717 $ (44,770) $ (101,894)
Net realized gains (losses)...... (1,577,664) (4,423,657) 946 (134,106)
Net unrealized gains (losses).... 6,658,714 (3,684,076) 1,286,497 (101,433)
------------- ------------ ------------- ------------
Increase (Decrease) in net
assets from operations...... $ 4,946,298 $(7,640,016) $ 1,242,673 $ (337,433)
------------- ------------ ------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 798,183 $ 2,734,886 $ 4,007,508 $ 8,231,578
Net transfers between
Sub-Accounts and Fixed
Account....................... 4,299,366 (1,032,098) 3,537,332 5,579,377
Withdrawals, surrenders,
annuitizations and contract
charges....................... (1,079,663) (897,534) (1,693,700) (1,479,723)
------------- ------------ ------------- ------------
Net accumulation activity.... $ 4,017,886 $ 805,254 $ 5,851,140 $12,331,232
------------- ------------ ------------- ------------
Annuitization Activity:
Annuitizations................. $ 941 $ 3,586 $ 18,144 $ 1,716
Annuity payments and contract
charges....................... (2,818) (7,084) (4,421) (5,621)
Net transfers between
Sub-Accounts.................. -- -- -- --
Adjustments to annuity
reserves...................... (523) 218 (960) 2,415
------------- ------------ ------------- ------------
Net annuitization activity... $ (2,400) $ (3,280) $ 12,763 $ (1,490)
------------- ------------ ------------- ------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 4,015,486 $ 801,974 $ 5,863,903 $12,329,742
------------- ------------ ------------- ------------
Increase (Decrease) in net
assets........................ $ 8,961,784 $(6,838,042) $ 7,106,576 $11,992,309
NET ASSETS:
Beginning of period.............. 16,976,738 23,814,780 35,306,698 23,314,389
------------- ------------ ------------- ------------
End of period.................... $25,938,522 $16,976,738 $42,413,274 $35,306,698
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
<CAPTION>
FCG
Sub-Account
---------------------------
Six Months Year Ended
Ended December 31,
June 30, 1999 1998
------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 1,709,367 $ 1,045,909
Net realized gains (losses)...... 2,057,411 5,611,522
Net unrealized gains (losses).... (4,529,427) 4,069,821
------------- ------------
Increase (Decrease) in net
assets from operations...... $ (762,649) $10,727,252
------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 2,142,820 $ 7,721,923
Net transfers between
Sub-Accounts and Fixed
Account....................... 5,593,271 8,246,837
Withdrawals, surrenders,
annuitizations and contract
charges....................... (2,639,465) (4,121,150)
------------- ------------
Net accumulation activity.... $ 5,096,626 $11,847,610
------------- ------------
Annuitization Activity:
Annuitizations................. $ 37,541 $ 34,551
Annuity payments and contract
charges....................... (6,499) (28,601)
Net transfers between
Sub-Accounts.................. -- (17,030)
Adjustments to annuity
reserves...................... (1,882) (10,148)
------------- ------------
Net annuitization activity... $ 29,160 $ (21,228)
------------- ------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 5,125,786 $11,826,382
------------- ------------
Increase (Decrease) in net
assets........................ $ 4,363,137 $22,553,634
NET ASSETS:
Beginning of period.............. 71,899,852 49,346,218
------------- ------------
End of period.................... $76,262,989 $71,899,852
------------- ------------
------------- ------------
</TABLE>
See notes to financial statements
14
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GSS HYS
Sub-Account Sub-Account
----------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1999 1998 June 30, 1999 1998
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 18,726,317 $ 15,055,335 $ 22,635,075 $ 13,760,883
Net realized gains (losses)...... 240,274 7,944,827 1,036,551 4,744,016
Net unrealized gains (losses).... (30,997,972) 2,813,782 (10,967,928) (20,640,207)
-------------- ------------- -------------- -------------
Increase (Decrease) in net
assets from operations...... $(12,031,381) $ 25,813,944 $ 12,703,698 $ (2,135,308)
-------------- ------------- -------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 16,338,308 $ 33,941,912 $ 10,574,355 $ 54,795,963
Net transfers between
Sub-Accounts and Fixed
Account....................... 52,458,449 49,410,266 4,868,223 20,587,340
Withdrawals, surrenders,
annuitizations and contract
charges....................... (28,449,243) (40,854,521) (19,437,895) (24,841,987)
-------------- ------------- -------------- -------------
Net accumulation activity.... $ 40,347,514 $ 42,497,657 $ (3,995,317) $ 50,541,316
-------------- ------------- -------------- -------------
Annuitization Activity:
Annuitizations................. $ 298,365 $ 1,080,791 $ 53,856 $ 514,021
Annuity payments and contract
charges....................... (153,069) (563,274) (134,907) (301,855)
Net transfers between
Sub-Accounts.................. -- (10,317) -- --
Adjustments to annuity
reserves...................... (38,006) 17,162 (11,024) 44,449
-------------- ------------- -------------- -------------
Net annuitization activity... $ 107,290 $ 524,362 $ (92,075) $ 256,615
-------------- ------------- -------------- -------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 40,454,804 $ 43,022,019 $ (4,087,392) $ 50,797,931
-------------- ------------- -------------- -------------
Increase (Decrease) in net
assets........................ $ 28,423,423 $ 68,835,963 $ 8,616,306 $ 48,662,623
NET ASSETS:
Beginning of period.............. 400,140,205 331,304,242 286,338,035 237,675,412
-------------- ------------- -------------- -------------
End of period.................... $428,563,628 $ 400,140,205 $294,954,341 $ 286,338,035
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
<CAPTION>
MSS
Sub-Account
-----------------------------
Six Months Year Ended
Ended December 31,
June 30, 1999 1998
-------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ (2,383,092) $ 45,005,946
Net realized gains (losses)...... 6,240,428 11,481,102
Net unrealized gains (losses).... 44,709,367 (23,796,460)
-------------- -------------
Increase (Decrease) in net
assets from operations...... $ 48,566,703 $ 32,690,588
-------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 5,498,005 $ 22,720,393
Net transfers between
Sub-Accounts and Fixed
Account....................... 9,785,830 (5,210,223)
Withdrawals, surrenders,
annuitizations and contract
charges....................... (24,233,905) (28,997,564)
-------------- -------------
Net accumulation activity.... $ (8,950,070) $ (11,487,394)
-------------- -------------
Annuitization Activity:
Annuitizations................. $ 73,128 $ 360,666
Annuity payments and contract
charges....................... (209,310) (278,169)
Net transfers between
Sub-Accounts.................. (43,479) (6,870)
Adjustments to annuity
reserves...................... (11,339) (3,336)
-------------- -------------
Net annuitization activity... $ (191,000) $ 72,291
-------------- -------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 9,141,070 $ (11,415,103)
-------------- -------------
Increase (Decrease) in net
assets........................ $ 39,425,633 $ 21,275,485
NET ASSETS:
Beginning of period.............. 334,101,011 312,825,526
-------------- -------------
End of period.................... $373,526,644 $ 334,101,011
-------------- -------------
-------------- -------------
</TABLE>
See notes to financial statements
15
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MIS MMS
Sub-Account Sub-Account
--------------------------- ------------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1999 1998(a) June 30, 1999 1998
------------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 1,989,892 $ (277,915) $ 6,202,984 $ 12,464,454
Net realized gains (losses)...... 1,136,061 290,620 -- --
Net unrealized gains (losses).... 14,166,057 11,412,175 -- --
------------- ------------ -------------- --------------
Increase (Decrease) in net
assets from operations...... $ 17,292,010 $11,424,880 $ 6,202,984 $ 12,464,454
------------- ------------ -------------- --------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 71,022,284 $42,898,409 $ 37,630,556 $ 84,539,955
Net transfers between
Sub-Accounts and Fixed
Account....................... 87,268,153 27,944,745 83,047,915 205,348,459
Withdrawals, surrenders,
annuitizations and contract
charges....................... (4,786,373) (1,223,987) (111,914,188) (180,586,976)
------------- ------------ -------------- --------------
Net accumulation activity.... $153,504,064 $69,619,167 $ 8,764,283 $ 109,301,438
------------- ------------ -------------- --------------
Annuitization Activity:
Annuitizations................. $ 139,916 $ 158,201 $ 830,337 $ 1,223,366
Annuity payments and contract
charges....................... (11,750) (10,253) (161,087) (267,886)
Net transfers between
Sub-Accounts.................. -- -- 172,666 (4,847)
Adjustments to annuity
reserves...................... (2,005) (1,090) (193,019) (38,667)
------------- ------------ -------------- --------------
Net annuitization activity... $ 126,161 $ 146,858 $ 648,897 $ 911,966
------------- ------------ -------------- --------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $153,630,225 $69,766,025 $ 9,413,180 $ 110,213,404
------------- ------------ -------------- --------------
Increase (Decrease) in net
assets........................ $170,922,235 $81,190,905 $ 15,616,164 $ 122,677,858
NET ASSETS:
Beginning of period.............. 81,190,905 -- 416,905,347 294,227,489
------------- ------------ -------------- --------------
End of period.................... $252,113,140 $81,190,905 $ 432,521,511 $ 416,905,347
------------- ------------ -------------- --------------
------------- ------------ -------------- --------------
<CAPTION>
NWD
Sub-Account
---------------------------
Six Months Year Ended
Ended December 31,
June 30, 1999 1998(a)
------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 14,596 $ (55,628)
Net realized gains (losses)...... (11,334) (77,926)
Net unrealized gains (losses).... 2,406,769 1,504,013
------------- ------------
Increase (Decrease) in net
assets from operations...... $ 2,410,031 $ 1,370,459
------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 4,296,404 $ 5,928,260
Net transfers between
Sub-Accounts and Fixed
Account....................... 6,270,843 6,269,724
Withdrawals, surrenders,
annuitizations and contract
charges....................... (609,716) (345,722)
------------- ------------
Net accumulation activity.... $ 9,957,531 $11,852,262
------------- ------------
Annuitization Activity:
Annuitizations................. $ 25,672 $ 59,889
Annuity payments and contract
charges....................... (2,485) (3,118)
Net transfers between
Sub-Accounts.................. -- --
Adjustments to annuity
reserves...................... (310) (2,368)
------------- ------------
Net annuitization activity... $ 22,877 $ 54,403
------------- ------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 9,980,408 $11,906,665
------------- ------------
Increase (Decrease) in net
assets........................ $12,390,439 $13,277,124
NET ASSETS:
Beginning of period.............. 13,277,124 --
------------- ------------
End of period.................... $25,667,563 $13,277,124
------------- ------------
------------- ------------
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
16
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RES RGS
Sub-Account Sub-Account
------------------------------ ---------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1999 1998 June 30, 1999 1998
--------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 27,168,956 $ 22,892,997 $ (144,495) $ (196,955)
Net realized gains (losses)...... 25,482,132 21,973,914 745,281 513,010
Net unrealized gains (losses).... 27,135,258 110,904,687 3,016,704 3,223,975
--------------- ------------- ------------- ------------
Increase (Decrease) in net
assets from operations...... $ 79,786,346 $ 155,771,598 $ 3,617,490 $ 3,540,030
--------------- ------------- ------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 34,684,333 $ 103,921,694 $ 7,045,599 $13,378,132
Net transfers between
Sub-Accounts and Fixed
Account....................... 22,974,151 82,986,033 17,523,083 14,755,314
Withdrawals, surrenders,
annuitizations and contract
charges....................... (36,946,442) (44,188,615) (2,146,212) (1,413,449)
--------------- ------------- ------------- ------------
Net accumulation activity.... $ 20,712,042 $ 142,719,112 $22,422,470 $26,719,997
--------------- ------------- ------------- ------------
Annuitization Activity:
Annuitizations................. $ 176,430 $ 452,588 $ 45,656 $ 73,112
Annuity payments and contract
charges....................... (161,381) (211,454) (10,330) (12,398)
Net transfers between
Sub-Accounts.................. -- 34,374 -- 58,620
Adjustments to annuity
reserves...................... (17,248) (35,852) (2,035) (2,709)
--------------- ------------- ------------- ------------
Net annuitization activity... $ (2,199) $ 239,656 $ 33,291 $ 116,625
--------------- ------------- ------------- ------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 20,709,843 $ 142,958,768 $22,455,761 $26,836,622
--------------- ------------- ------------- ------------
Increase (Decrease) in net
assets........................ $ 100,496,189 $ 298,730,366 $26,073,251 $30,376,652
NET ASSETS:
Beginning of period.............. 948,011,552 649,281,186 36,274,179 5,897,527
--------------- ------------- ------------- ------------
End of period.................... $ 1,048,507,741 $ 948,011,552 $62,347,430 $36,274,179
--------------- ------------- ------------- ------------
--------------- ------------- ------------- ------------
<CAPTION>
RSS
Sub-Account
---------------------------
Six Months Year Ended
Ended December 31,
June 30, 1999 1998(a)
------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ (33,004) $ (15,398)
Net realized gains (losses)...... (20,375) (94,970)
Net unrealized gains (losses).... 659,920 126,682
------------- ------------
Increase (Decrease) in net
assets from operations...... $ 606,541 $ 16,314
------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $1,620,093 $2,275,775
Net transfers between
Sub-Accounts and Fixed
Account....................... 2,223,089 1,268,571
Withdrawals, surrenders,
annuitizations and contract
charges....................... (300,399) (41,350)
------------- ------------
Net accumulation activity.... $3,542,783 $3,502,996
------------- ------------
Annuitization Activity:
Annuitizations................. $ -- $ --
Annuity payments and contract
charges....................... -- --
Net transfers between
Sub-Accounts.................. -- --
Adjustments to annuity
reserves...................... -- --
------------- ------------
Net annuitization activity... $ -- $ --
------------- ------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $3,542,783 $3,502,996
------------- ------------
Increase (Decrease) in net
assets........................ $4,149,324 $3,519,310
NET ASSETS:
Beginning of period.............. 3,519,310 --
------------- ------------
End of period.................... $7,668,634 $3,519,310
------------- ------------
------------- ------------
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
17
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
SIS TRS
Sub-Account Sub-Account
--------------------------- --------------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1999 1998(a) June 30, 1999 1998
------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 199,685 $ (37,067) $ 257,163,761 $ 163,419,988
Net realized gains (losses)...... 18,941 (88,826) 26,668,399 51,696,637
Net unrealized gains (losses).... (100,268) 217,175 (207,585,389) (49,976,046)
------------- ------------ --------------- ---------------
Increase (Decrease) in net
assets from operations...... $ 118,358 $ 91,282 $ 76,246,771 $ 165,140,579
------------- ------------ --------------- ---------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 2,030,529 $3,255,808 $ 52,225,367 $ 144,694,740
Net transfers between
Sub-Accounts and Fixed
Account....................... 3,550,356 4,501,699 53,855,629 99,107,901
Withdrawals, surrenders,
annuitizations and contract
charges....................... (232,985) (67,691) (124,144,932) (174,048,588)
------------- ------------ --------------- ---------------
Net accumulation activity.... $ 5,347,900 $7,689,816 $ (18,063,936) $ 69,754,053
------------- ------------ --------------- ---------------
Annuitization Activity:
Annuitizations................. $ -- $ -- $ 1,334,284 $ 2,556,048
Annuity payments and contract
charges....................... -- -- (770,263) (1,415,164)
Net transfers between
Sub-Accounts.................. -- -- (21,319) 104,077
Adjustments to annuity
reserves...................... -- -- (186,197) 157,679
------------- ------------ --------------- ---------------
Net annuitization activity... $ -- $ -- $ 356,505 $ 1,402,640
------------- ------------ --------------- ---------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 5,347,900 $7,689,816 $ (17,707,431) $ 71,156,693
------------- ------------ --------------- ---------------
Increase (Decrease) in net
assets........................ $ 5,466,258 $7,781,098 $ 58,539,340 $ 236,297,272
NET ASSETS:
Beginning of period.............. 7,781,098 -- 1,816,081,256 1,579,783,984
------------- ------------ --------------- ---------------
End of period.................... $13,247,356 $7,781,098 $ 1,874,620,596 $ 1,816,081,256
------------- ------------ --------------- ---------------
------------- ------------ --------------- ---------------
<CAPTION>
UTS
Sub-Account
----------------------------
Six Months Year Ended
Ended December 31,
June 30, 1999 1998
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 27,013,484 $ 15,309,048
Net realized gains (losses)...... 5,078,237 3,138,939
Net unrealized gains (losses).... (10,366,665) 5,912,858
------------- -------------
Increase (Decrease) in net
assets from operations...... $ 21,725,056 $ 24,360,845
------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 17,626,280 $ 39,799,198
Net transfers between
Sub-Accounts and Fixed
Account....................... 27,156,253 40,165,423
Withdrawals, surrenders,
annuitizations and contract
charges....................... (8,460,441) (10,679,491)
------------- -------------
Net accumulation activity.... $ 36,322,092 $ 69,285,130
------------- -------------
Annuitization Activity:
Annuitizations................. $ -- $ 357,771
Annuity payments and contract
charges....................... (75,784) (266,331)
Net transfers between
Sub-Accounts.................. -- 93,575
Adjustments to annuity
reserves...................... (1,823) 117,915
------------- -------------
Net annuitization activity... $ (77,607) $ 302,930
------------- -------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $ 36,244,485 $ 69,588,060
------------- -------------
Increase (Decrease) in net
assets........................ $ 57,969,541 $ 93,948,905
NET ASSETS:
Beginning of period.............. 211,254,980 117,306,075
------------- -------------
End of period.................... $269,224,521 $ 211,254,980
------------- -------------
------------- -------------
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
18
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GAA GGS
Sub-Account Sub-Account
---------------------------- ----------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1999 1998 June 30, 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 5,599,716 $ 7,482,682 $ 8,066,630 $ (87,913)
Net realized gains (losses)...... 1,327,939 3,692,859 271,091 (498,522)
Net unrealized gains (losses).... (3,637,377) (6,039,574) (15,070,567) 12,271,071
------------- ------------- ------------- -------------
Increase (Decrease) in net
assets from operations...... $ 3,290,278 $ 5,135,967 $ (6,732,846) $ 11,684,636
------------- ------------- ------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 1,918,209 $ 8,860,816 $ 1,276,262 $ 3,786,224
Net transfers between
Sub-Accounts and Fixed
Account....................... (8,850,697) (4,974,353) (467,694) (12,675,687)
Withdrawals, surrenders,
annuitizations and contract
charges....................... (3,521,231) (6,184,345) (7,657,316) (11,908,423)
------------- ------------- ------------- -------------
Net accumulation activity.... $(10,453,719) $ (2,297,882) $ (6,848,748) $(20,797,886)
------------- ------------- ------------- -------------
Annuitization Activity:
Annuitizations................. $ 5,339 $ 196,381 $ 67,265 $ 158,700
Annuity payments and contract
charges....................... (52,601) (88,583) (56,379) (130,085)
Net transfers between
Sub-Accounts.................. 300 1,087 -- --
Adjustments to annuity
reserves...................... 2,356 (39,140) (24,488) 3,766
------------- ------------- ------------- -------------
Net annuitization activity... $ (44,606) $ 69,745 $ (13,602) $ 32,381
------------- ------------- ------------- -------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $(10,498,325) $ (2,228,137) $ (6,862,350) $(20,765,505)
------------- ------------- ------------- -------------
Increase (Decrease) in net
assets........................ $ (7,208,047) $ 2,907,830 $(13,595,196) $ (9,080,869)
NET ASSETS:
Beginning of period.............. 123,345,612 120,437,782 89,813,963 98,894,832
------------- ------------- ------------- -------------
End of period.................... $116,137,565 $ 123,345,612 $ 76,218,767 $ 89,813,963
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<CAPTION>
GGR GTR
Sub-Account Sub-Account
---------------------------- ---------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1999 1998 June 30, 1999 1998
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 8,899,894 $ 15,489,141 $ 6,578,177 $ 2,635,441
Net realized gains (losses)...... 5,900,523 11,591,824 1,789,752 3,803,017
Net unrealized gains (losses).... 16,819,780 1,458,038 (9,423,557) 6,391,001
------------- ------------- ------------- ------------
Increase (Decrease) in net
assets from operations...... $ 31,620,197 $ 28,539,003 $ (1,055,628) $12,829,459
------------- ------------- ------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 4,365,509 $ 15,688,080 $ 3,613,897 $ 8,845,349
Net transfers between
Sub-Accounts and Fixed
Account....................... (3,371,908) (6,628,067) 2,698,473 8,428,546
Withdrawals, surrenders,
annuitizations and contract
charges....................... (11,996,114) (14,148,887) (3,238,917) (4,603,063)
------------- ------------- ------------- ------------
Net accumulation activity.... $(11,002,513) $ (5,088,874) $ 3,073,453 $12,670,832
------------- ------------- ------------- ------------
Annuitization Activity:
Annuitizations................. 7,418 $ 107,920 $ -- $ 134,223
Annuity payments and contract
charges....................... (56,363) (104,706) (33,584) (61,120)
Net transfers between
Sub-Accounts.................. (12,442) (114,522) -- --
Adjustments to annuity
reserves...................... (2,366) (5,286) (5,881) 16,790
------------- ------------- ------------- ------------
Net annuitization activity... $ (63,753) $ (116,594) $ (39,465) $ 89,893
------------- ------------- ------------- ------------
Increase (Decrease) in net assets
from contract owner
transactions.................... $(11,066,266) $ (5,205,468) $ 3,033,988 $12,760,725
------------- ------------- ------------- ------------
Increase (Decrease) in net
assets........................ $ 20,553,931 $ 23,333,535 $ 1,978,360 $25,590,184
NET ASSETS:
Beginning of period.............. 260,479,236 237,145,701 95,274,472 69,684,288
------------- ------------- ------------- ------------
End of period.................... $281,033,167 $ 260,479,236 $ 97,252,832 $95,274,472
------------- ------------- ------------- ------------
------------- ------------- ------------- ------------
</TABLE>
See notes to financial statements
19
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN 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 Regatta contracts, Regatta Gold contracts, Regatta Classic
contracts, Regatta Platinum contracts (collectively, the "Contracts") and
certain other fixed and variable annuity contracts issued by the Sponsor. 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 attributable to the Contracts is invested in shares of a specific
corresponding 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 ("MFS"), an affiliate of
the Sponsor, is the investment adviser to the Series Trust.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Sponsor's 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 revenue 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 participants under the Contracts 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.
20
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
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. The deductions are
transferred periodically to the Sponsor. Currently, the deduction is at an
effective annual rate of 1.25% for Regatta, Regatta Gold and Regatta Platinum
contracts and 1.00% for Regatta Classic contracts.
Each year on the account anniversary, an account administration fee ("Account
Fee") equal to the lesser of $30 or 2% of the participant's account value in the
case of Regatta and Regatta Gold contracts, $35 in the case of Regatta Platinum
contracts and $50 in the case of Regatta Classic contracts (after account year
5, the account fee, for Regatta Gold and Regatta Platinum, may be changed
annually, but it may not exceed the lesser of $50 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.
The Sponsor does not deduct a sales charge from purchase payments. However, in
the case of Regatta, Regatta Gold and Regatta Platinum, 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. In the case of Regatta Classic, a withdrawal
charge of 1% is applied to purchase payments withdrawn which have been credited
to a participant's account for less than one year.
For assuming the risk that withdrawal charges may be insufficient to compensate
it for the costs of distributing the 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 Regatta Gold,
Regatta Classic and Regatta Platinum contracts, which exceed the revenues
received from the Account Fees described above 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 at least 4% or 3%, as stated in each
participant's contract or certificate, as applicable. Required adjustments to
the reserves are accomplished by transfers to or from the Sponsor.
21
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN 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 Period Units Purchased Account
----------------------- ----------------------- -----------------------
Six Year Six Six
Months Ended Months Year Months Year
Ended December Ended Ended Ended Ended
June 30, 31, June 30, December 31, June 30, December 31,
1999 1998 1999 1998 1999 1998
---------- ----------- --------- ------------ --------- ------------
MFS REGATTA CONTRACTS:
------------------------------
<S> <C> <C> <C> <C> <C> <C>
CAS -- Level 1 464,349 2,993,020 976 -- (360,361) (2,286,027)
CAS -- Level 2 9,053,993 5,390,680 -- -- 712,277 5,658,421
GSS -- Level 1 325,241 1,462,222 273 -- (280,780) (932,035)
GSS -- Level 2 2,656,978 1,514,633 -- -- 835,289 1,951,275
HYS -- Level 1 73,632 537,033 -- -- (63,400) (384,324)
HYS -- Level 2 1,320,379 975,126 -- -- 166,993 742,028
MSS -- Level 1 196,463 941,686 539 -- (158,695) (678,909)
MSS -- Level 2 2,730,897 2,022,757 -- -- 413,242 1,359,567
MMS -- Level 1 268,447 1,518,722 5,910 12,315 (82,096) 1,824,176
MMS -- Level 2 3,722,758 1,845,809 40,509 8,252 3,169,585 6,810,959
TRS -- Level 1 898,137 5,756,653 835 4,933 (639,766) (4,180,220)
TRS -- Level 2 12,506,430 7,838,741 3,911 2,056 1,345,288 8,389,482
GGS -- Level 1 89,328 700,338 762 -- (77,076) (536,114)
GGS -- Level 2 834,010 483,253 -- -- 105,562 702,569
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Period
------------------------- -------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998 1999 1998
---------- ------------- ---------- -------------
MFS REGATTA CONTRACTS:
------------------------------
<S> <C> <C> <C> <C>
CAS -- Level 1 (33,062) (242,644) 71,902 464,349
CAS -- Level 2 (1,175,192) (1,995,108) 8,591,078 9,053,993
GSS -- Level 1 (14,527) (204,946) 30,207 325,241
GSS -- Level 2 (552,274) (808,930) 2,939,993 2,656,978
HYS -- Level 1 (2,577) (79,077) 7,655 73,632
HYS -- Level 2 (263,746) (396,775) 1,223,626 1,320,379
MSS -- Level 1 (20,597) (66,314) 17,710 196,463
MSS -- Level 2 (502,094) (651,427) 2,642,045 2,730,897
MMS -- Level 1 (150,372) (3,086,766) 41,889 268,447
MMS -- Level 2 (3,105,886) (4,942,262) 3,826,966 3,722,758
TRS -- Level 1 (80,115) (683,229) 179,091 898,137
TRS -- Level 2 (2,448,788) (3,723,849) 11,406,841 12,506,430
GGS -- Level 1 (8,413) (74,896) 4,601 89,328
GGS -- Level 2 (205,074) (351,812) 734,498 834,010
</TABLE>
22
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
Units Transferred
Between Sub-Accounts
and
Units Outstanding Fixed Accumulation
Beginning of Period Units Purchased Account
----------------------- ----------------------- ------------------------
Six Year Six Six
Months Ended Months Year Months Year
Ended December Ended Ended Ended Ended
June 30, 31, June 30, December 31, June 30, December 31,
1999 1998 1999 1998 1999 1998
---------- ----------- -------- ------------ ---------- ------------
MFS REGATTA GOLD
CONTRACTS:
------------------------------
<S> <C> <C> <C> <C> <C> <C>
BDS(a)........................ 1,182,239 -- 113,903 437,383 698,227 776,227
CAS........................... 37,500,481 35,528,897 336,966 2,963,417 (1,113,671) 1,606,290
COS........................... 10,262,282 6,175,224 175,107 2,085,178 1,194,460 2,487,753
MIT........................... 51,880,765 40,709,531 802,527 7,531,155 1,773,185 6,682,559
EGS........................... 28,900,957 25,039,986 361,910 3,519,560 539,905 1,929,406
EIS(a)........................ 528,238 -- 56,647 235,337 465,594 312,512
FCE........................... 2,147,348 2,159,228 25,288 203,168 378,572 (114,376)
FCI........................... 3,290,043 2,390,056 69,747 532,412 37,668 520,640
FCG........................... 5,214,558 4,441,911 41,303 449,506 (32,039) 655,503
GSS........................... 23,218,234 20,508,844 266,023 1,760,124 2,240,594 2,891,419
HYS........................... 14,190,817 11,699,195 141,829 2,333,919 (181,071) 1,143,802
MSS........................... 11,245,144 11,326,719 62,787 838,284 154,513 (135,303)
MIS(a)........................ 4,121,518 -- 866,384 2,049,150 4,233,178 2,166,812
MMS........................... 29,387,086 21,463,139 658,813 5,295,611 4,378,073 9,723,034
NWD(a)........................ 794,859 -- 47,439 252,432 315,385 573,525
RES........................... 38,553,986 35,654,917 391,010 1,299,737 152,407 3,631,861
RGS........................... 2,408,676 533,928 87,646 857,568 874,348 1,134,366
RSS(a)........................ 190,267 -- 21,309 83,591 138,396 110,312
SIS(a)........................ 622,914 -- 57,739 207,182 150,993 423,614
TRS........................... 71,102,020 66,303,467 540,481 5,585,984 736,251 4,374,616
UTS........................... 9,023,102 6,101,638 205,471 1,559,584 595,879 1,878,542
GAA........................... 7,576,691 7,928,833 46,920 440,970 (591,617) (400,015)
GGS........................... 5,048,219 6,127,641 40,663 199,740 (59,044) (782,796)
GGR........................... 14,522,129 15,058,757 97,519 815,222 (270,199) (504,727)
GTR........................... 5,354,633 4,676,853 54,644 458,384 44,053 506,340
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Period
------------------------- -------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998 1999 1998
---------- ------------- ---------- -------------
MFS REGATTA GOLD
CONTRACTS:
------------------------------
<S> <C> <C> <C> <C>
BDS(a)........................ (40,092) (31,371) 1,954,277 1,182,239
CAS........................... (1,917,508) (2,598,123) 34,806,268 37,500,481
COS........................... (410,519) (485,873) 11,221,330 10,262,282
MIT........................... (2,125,268) (3,042,480) 52,331,209 51,880,765
EGS........................... (1,179,464) (1,587,995) 28,623,308 28,900,957
EIS(a)........................ (40,445) (19,611) 1,010,034 528,238
FCE........................... (127,606) (100,672) 2,423,602 2,147,348
FCI........................... (154,801) (153,065) 3,242,657 3,290,043
FCG........................... (198,998) (332,362) 5,024,824 5,214,558
GSS........................... (1,420,695) (1,942,153) 24,304,156 23,218,234
HYS........................... (828,110) (986,099) 13,323,465 14,190,817
MSS........................... (581,499) (784,556) 10,880,945 11,245,144
MIS(a)........................ (268,809) (94,444) 8,952,271 4,121,518
MMS........................... (5,964,073) (7,094,698) 28,459,899 29,387,086
NWD(a)........................ (49,233) (31,098) 1,108,450 794,859
RES........................... (1,487,132) (2,032,529) 37,610,271 38,553,986
RGS........................... (136,574) (117,186) 3,234,096 2,408,676
RSS(a)........................ (16,081) (3,636) 333,891 190,267
SIS(a)........................ (18,740) (7,882) 812,906 622,914
TRS........................... (3,873,335) (5,162,047) 68,505,417 71,102,020
UTS........................... (352,001) (516,662) 9,472,451 9,023,102
GAA........................... (213,747) (393,097) 6,818,247 7,576,691
GGS........................... (357,718) (496,366) 4,672,120 5,048,219
GGR........................... (634,933) (847,123) 13,714,516 14,522,129
GTR........................... (188,936) (286,944) 5,264,394 5,354,633
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
23
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
Units Transferred
Between Sub-Accounts
and
Units Outstanding Fixed Accumulation
Beginning of Period Units Purchased Account
------------------------ ----------------------- -----------------------
Six Six Six
Months Year Months Year Months Year
Ended Ended Ended Ended Ended Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 1999 1998 1999 1998
--------- ------------- -------- ------------ -------- ------------
MFS REGATTA CLASSIC
CONTRACTS:
------------------------------
<S> <C> <C> <C> <C> <C> <C>
BDS(a)........................ 35,123 -- 35,271 33,440 (5,930) 1,859
CAS........................... 465,812 265,497 57,920 170,863 12,424 49,860
COS........................... 277,518 160,778 44,069 98,617 81,462 29,367
MIT........................... 1,213,193 554,216 191,034 449,788 (69,514) 267,481
EGS........................... 959,802 318,028 115,410 613,049 75,724 55,590
EIS(a)........................ 12,113 -- 15,312 9,590 45,443 2,523
FCE........................... 43,654 40,698 6,365 16,413 5,302 (12,814)
FCI........................... 83,820 67,892 25,734 20,502 57,265 (3,210)
FCG........................... 90,582 51,038 753 34,300 669,111 8,318
GSS........................... 297,310 113,243 43,756 139,510 (32,416) 51,253
HYS........................... 342,363 155,306 44,728 224,640 (51,958) (2,332)
MSS........................... 140,324 118,243 11,644 59,666 74,897 (29,055)
MIS(b)........................ 232,788 -- 148,615 78,233 (89,803) 156,319
MMS........................... 270,417 77,105 762,090 733,426 (19,559) (366,138)
NWD(b)........................ 29,182 -- 36,892 13,601 821 15,614
RES........................... 872,289 553,996 105,677 279,626 (16,337) 85,963
RGS........................... 33,882 6,085 27,635 9,086 10,989 19,504
RSS(d)........................ 2,234 -- 2,788 942 2,464 1,292
SIS(c)........................ 2,577 -- 1,417 1,726 3,010 851
TRS........................... 1,731,292 951,205 294,450 681,412 (8,445) 155,997
UTS........................... 178,136 77,009 47,698 97,613 20,811 15,497
GAA........................... 53,167 50,531 1,070 16,112 (2,605) (8,665)
GGS........................... 40,074 19,394 12,952 20,516 88 639
GGR........................... 121,297 85,526 5,298 47,642 2,430 (2,579)
GTR........................... 91,253 45,122 22,951 38,335 1,582 8,687
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Period
---------------------- ------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998 1999 1998
-------- ------------ --------- -------------
MFS REGATTA CLASSIC
CONTRACTS:
------------------------------
<S> <C> <C> <C> <C>
BDS(a)........................ (1,133) (176) 63,331 35,123
CAS........................... (20,394) (20,408) 515,762 465,812
COS........................... (10,260) (11,244) 392,789 277,518
MIT........................... (73,601) (58,292) 1,261,112 1,213,193
EGS........................... (18,066) (26,865) 1,132,870 959,802
EIS(a)........................ (945) -- 71,923 12,113
FCE........................... (383) (643) 54,938 43,654
FCI........................... (10,203) (1,364) 156,616 83,820
FCG........................... (137) (3,074) 760,309 90,582
GSS........................... (24,540) (6,696) 284,110 297,310
HYS........................... (19,650) (35,251) 315,483 342,363
MSS........................... (7,855) (8,530) 219,010 140,324
MIS(b)........................ (4,554) (1,764) 287,046 232,788
MMS........................... (185,669) (173,976) 827,279 270,417
NWD(b)........................ (4,347) (33) 62,548 29,182
RES........................... (23,071) (47,296) 938,558 872,289
RGS........................... (1,095) (793) 71,411 33,882
RSS(d)........................ (1) -- 7,485 2,234
SIS(c)........................ -- -- 7,004 2,577
TRS........................... (49,789) (57,322) 1,967,508 1,731,292
UTS........................... (7,590) (11,983) 239,055 178,136
GAA........................... (4,472) (4,811) 47,160 53,167
GGS........................... (3,417) (475) 49,697 40,074
GGR........................... (7,623) (9,292) 121,402 121,297
GTR........................... (2,553) (891) 113,233 91,253
</TABLE>
(a) For the period June 22, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(b) For the period May 7, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(c) For the period June 26, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(d) For the period August 8, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
24
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
Units Transferred
Between Sub-Accounts
and
Units Outstanding Fixed Accumulation
Beginning of Period Units Purchased Account
----------------------- ----------------------- -----------------------
Six Six Six
Months Year Months Year Months Year
Ended Ended Ended Ended Ended Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 1999 1998 1999 1998
--------- ------------ --------- ------------ --------- ------------
MFS REGATTA PLATINUM
CONTRACTS:
------------------------------
<S> <C> <C> <C> <C> <C> <C>
BDS(a)........................ 628,000 -- 456,073 491,319 580,242 143,015
CAS(b)........................ 1,683,164 -- 2,838,807 1,489,422 1,413,467 215,237
COS(d)........................ 556,955 -- 1,018,683 480,199 652,155 80,801
MIT(b)........................ 5,331,018 -- 8,159,967 4,380,217 6,105,704 1,013,330
EGS(b)........................ 1,651,404 -- 2,065,701 1,412,976 1,414,265 254,376
EIS(c)........................ 272,362 -- 354,346 237,608 297,644 35,740
FCE(c)........................ 72,586 -- 61,943 67,723 76,545 4,892
FCI(c)........................ 338,938 -- 337,651 305,695 276,162 37,500
FCG(d)........................ 199,346 -- 161,211 167,384 158,922 34,931
GSS(d)........................ 816,102 -- 1,169,582 686,599 1,410,523 142,121
HYS(c)........................ 1,000,705 -- 789,662 917,703 878,778 95,977
MSS(e)........................ 211,044 -- 312,971 180,220 200,123 35,500
MIS(b)........................ 2,428,134 -- 4,759,107 2,052,872 2,867,810 400,450
MMS(c)........................ 886,479 -- 2,063,328 1,436,884 (391,238) (492,250)
NWD(c)........................ 436,178 -- 349,003 366,459 289,680 75,832
RES(e)........................ 1,751,713 -- 2,140,285 1,463,540 1,734,925 319,544
RGS(a)........................ 387,080 -- 515,140 306,364 495,293 82,311
RSS(f)........................ 181,131 -- 142,597 162,752 81,470 19,544
SIS(g)........................ 157,634 -- 146,794 123,410 200,132 35,045
TRS(c)........................ 2,318,847 -- 3,502,681 1,926,233 3,495,196 434,196
UTS(e)........................ 819,649 -- 1,110,548 647,482 1,171,004 178,704
GAA(d)........................ 228,839 -- 118,317 175,049 58,466 56,466
GGS(c)........................ 76,270 -- 50,121 78,588 57,236 (2,199)
GGR(d)........................ 162,856 -- 232,879 125,715 133,851 37,960
GTR(h)........................ 152,857 -- 236,362 116,666 188,743 37,792
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Period
---------------------- -------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1999 1998 1999 1998
-------- ------------ ---------- -------------
MFS REGATTA PLATINUM
CONTRACTS:
------------------------------
<S> <C> <C> <C> <C>
BDS(a)........................ (24,794) (6,334) 1,639,521 628,000
CAS(b)........................ (95,960) (21,495) 5,839,478 1,683,164
COS(d)........................ (17,712) (4,045) 2,210,081 556,955
MIT(b)........................ (249,662) (62,529) 19,347,027 5,331,018
EGS(b)........................ (73,947) (15,948) 5,057,423 1,651,404
EIS(c)........................ (12,952) (986) 911,400 272,362
FCE(c)........................ (6,031) (29) 205,043 72,586
FCI(c)........................ (19,389) (4,257) 933,362 338,938
FCG(d)........................ (11,189) (2,969) 508,290 199,346
GSS(d)........................ (62,580) (12,618) 3,333,627 816,102
HYS(c)........................ (90,581) (12,975) 2,578,564 1,000,705
MSS(e)........................ (9,705) (4,676) 714,433 211,044
MIS(b)........................ (149,944) (25,188) 9,905,107 2,428,134
MMS(c)........................ (103,552) (58,155) 2,455,017 886,479
NWD(c)........................ (17,220) (6,113) 1,057,641 436,178
RES(e)........................ (88,966) (31,371) 5,537,957 1,751,713
RGS(a)........................ (25,568) (1,595) 1,371,945 387,080
RSS(f)........................ (16,346) (1,165) 388,852 181,131
SIS(g)........................ (6,908) (821) 497,652 157,634
TRS(c)........................ (169,268) (41,582) 9,147,456 2,318,847
UTS(e)........................ (41,788) (6,537) 3,059,413 819,649
GAA(d)........................ (8,019) (2,676) 397,603 228,839
GGS(c)........................ (4,308) (119) 179,319 76,270
GGR(d)........................ (13,672) (819) 515,914 162,856
GTR(h)........................ (5,089) (1,601) 572,873 152,857
</TABLE>
(a) For the period June 30, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(b) For the period June 5, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(c) For the period June 18, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(d) For the period June 23, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(e) For the period June 16, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(f) For the period June 29, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(g) For the period June 26, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(h) For the period July 7, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
25
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Participants in Regatta, Regatta Gold, Regatta Classic and Regatta
Platinum Sub-Accounts and the Board of Directors of Sun Life Assurance Company
of Canada (U.S.):
We have audited the accompanying statement of condition of Bond Sub-Account,
Capital Appreciation Sub-Account, Capital Opportunities Sub-Account,
Massachusetts Investors Trust Sub-Account, Emerging Growth Sub-Account, Equity
Income Sub-Account, MFS/Foreign & Colonial Emerging Markets Equity Sub-Account,
International Growth Sub-Account, International Growth and Income Sub-Account,
Government Securities Sub-Account, High Yield Sub-Account, Managed Sectors
Sub-Account, Massachusetts Investors Growth Stock Sub-Account, Money Market
Sub-Account, New Discovery Sub-Account, Research Sub-Account, Research Growth
and Income Sub-Account, Research International Sub-Account, Strategic Income
Sub-Account, Total Return Sub-Account, Utilities Sub-Account, Global Asset
Allocation Sub-Account, Global Governments Sub-Account, Global Growth
Sub-Account, and Global Total Return Sub-Account of Sun Life of Canada (U.S.)
Variable Account F (the "Sub-Accounts") as of June 30, 1999, the related
statement of operations for the period then ended and the statements of changes
in net assets for the six month period ended June 30, 1999 and the year ended
December 31, 1998. These financial statements are the responsibility of
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities held at June 30, 1999 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Sub-Accounts as of June 30, 1999, the
results of their operations and the changes in their net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 6, 1999
<PAGE>
MFS REGATTA
MFS REGATTA GOLD
MFS REGATTA CLASSIC
MFS REGATTA PLATINUM
DIRECTORS AND OFFICERS OF
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, President and Director
S. CAESAR RABOY, Director
RICHARD B. BAILEY, Director
M. COLYER CRUM, Director
DAVID D. HORN, Director
JOHN S. LANE, Director
ANGUS A. MacNAUGHTON, Director
JOHN D. McNEIL, Director
PETER F. DEMUTH, Vice President, Chief
Counsel and Assistant Secretary
JAMES A. McNULTY, III, Vice President
and Assistant General Manager
JAMES M. A. ANDERSON, Vice President, Investments
ROBERT P. VROLYK, Vice President, Finance and Actuary
L. BROCK THOMSON, Vice President
and Treasurer
ELLEN B. KING, Assistant Counsel and Secretary
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
ANNUITY SERVICE MAILING ADDRESS:
Sun Life Retirement Products & Services
P.O. Box 1024, Boston, Massachusetts 02103-9986
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street, Boston, Massachusetts 02110-2875
LEGAL COUNSEL
Covington & Burling
1201 Pennsylvania Avenue, N.W.
P.O. Box 7566, Washington, D.C. 20044-7566
AUDITORS
Deloitte & Touche LLP
200 Berkeley Street, Boston, Massachusetts 02116
This report is prepared for the general information of contract owners and
participants. It is authorized for distribution to prospective purchasers only
when preceded or accompanied by an effective prospectus.
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 from 8 a.m.
to 6 p.m. Eastern time on any business day.
GOLD-3 8/99 177M
[LOGO]
SEMI-ANNUAL REPORT - JUNE 30, 1999
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
A WHOLLY-OWNED SUBSIDIARY OF
SUN LIFE OF CANADA (U.S.) HOLDINGS, INC.
