<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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 or
contract 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>
FUTURITY CONTRACTS:
AIM Variable Insurance Fund, Inc.
V.I. Capital Appreciation Fund........ $11.2634 $12.2515 8.77%
V.I. Growth Fund...................... 12.5052 13.9819 11.81
V.I. Growth and Income Fund........... 11.2957 12.8525 13.78
V.I. International Equity Fund........ 10.9969 11.4057 3.72
The Alger American Fund
Growth Portfolio...................... 12.6460 14.5691 15.21
Income and Growth Portfolio........... 11.8414 12.6929 7.19
Small Capitalization Portfolio........ 10.3887 11.6926 12.55
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund............ 11.0000 12.2901 11.73
CORE Small Cap Equity Fund............ 8.9463 9.3665 4.70
CORE US Equity Fund................... 11.3062 12.7724 12.97
Growth and Income Fund................ 9.2498 10.1446 9.67
International Equity Fund............. 10.5032 10.7114 1.98
J.P. Morgan Series Trust II
Equity Portfolio...................... 10.8269 12.2413 13.06
International Opportunities
Portfolio............................ 9.2403 10.2387 10.80
Small Company Portfolio............... 8.3553 8.8092 5.43
Lord Abbett Series Fund, Inc.
Growth and Income Portfolio........... 10.0766 11.4960 14.09
MFS/Sun Life Series Trust
Capital Appreciation Series........... 11.3759 12.2364 7.56
Emerging Growth Series................ 12.1772 13.5443 11.23
Government Securities Series.......... 10.5829 10.2909 (2.76)
High Yield Series..................... 9.6667 10.0819 4.30
Money Market Series................... 10.3120 10.4628 1.46
Utilities Series...................... 10.3843 11.3428 9.23
OCC Accumulation Trust
Equity Portfolio...................... 10.5664 11.4940 8.78
Mid Cap Portfolio..................... 9.7036 10.0899 3.98
Small Cap Portfolio................... 8.2560 8.4922 2.86
Salomon Brothers Variable Series Funds,
Inc.
Variable Capital Fund................. 10.8433 12.1929 12.45
Variable Investors Fund............... 10.2249 11.7135 14.56
Variable Strategic Bond Fund.......... 10.4937 10.3393 (1.47)
Variable Total Return Fund............ 10.1488 10.5540 3.99
Warburg Pincus Trust
Emerging Markets Portfolio............ 7.2856 9.7863 34.32
International Equity Portfolio........ 9.0185 9.6290 6.77
Post-Venture Capital Portfolio........ 9.2305 10.3344 11.96
Small Company Growth Portfolio........ 8.8466 9.3785 6.01
</TABLE>
1
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY -- continued
These performance results do not reflect any applicable surrender charges or
contract 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>
FUTURITY II CONTRACTS:
AIM Variable Insurance Fund, Inc.
V.I. Capital Appreciation Fund........ $11.2991 $12.2891 8.76%
V.I. Growth Fund...................... 11.3293 12.6659 11.80
V.I. Growth and Income Fund........... 11.0655 12.5894 13.77
V.I. International Equity Fund........ 10.5553 10.9466 3.71
The Alger American Fund
Growth Portfolio...................... 11.1993 12.9011 15.20
Income and Growth Portfolio........... 11.0273 11.8191 7.18
Small Capitalization Portfolio........ 11.3603 12.7849 12.54
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund............ 11.0085 12.2984 11.72
CORE Small Cap Equity Fund............ 10.8679 11.3772 4.69
CORE US Equity Fund................... 10.8370 12.2411 12.96
Growth and Income Fund................ 10.3642 11.3656 9.66
International Equity Fund............. 10.5999 10.8089 1.97
J.P. Morgan Series Trust II
Equity Portfolio...................... 10.7114 12.1096 13.05
International Opportunities
Portfolio............................ 10.5058 11.6399 10.79
Small Company Portfolio............... 10.8537 11.4422 5.42
Lord Abbett Series Fund, Inc.
Growth and Income Portfolio........... 10.5917 12.0825 14.08
MFS/Sun Life Series Trust
Capital Appreciation Series........... 11.1244 11.9647 7.55
Massachusetts Investors Trust
Series............................... 10.0000* 10.2838 2.84
Emerging Growth Series................ 11.2723 12.5366 11.22
Government Securities Series.......... 9.9595 9.6837 (2.77)
High Yield Series..................... 9.9916 10.4198 4.29
Massachusetts Investors Growth Stock
Series............................... 10.0000* 10.5255 5.26
New Discovery Series.................. 10.0000* 10.9596 9.60
Total Return Series................... 10.0000* 10.0232 0.23
Utilities Series...................... 10.5369 11.5083 9.22
OCC Accumulation Trust
Equity Portfolio...................... 10.5784 11.5059 8.77
Mid Cap Portfolio..................... 10.6171 11.0386 3.97
Small Cap Portfolio................... 10.3520 10.6471 2.85
Managed Portfolio..................... 10.5329 11.2136 6.46
Sun Capital Advisers Trust
Sun Capital Money Market Fund......... 10.0143 10.1583 1.44
Sun Capital Investment Grade Bond
Fund................................. 9.9809 9.8573 (1.24)
Sun Capital Real Estate Fund.......... 10.0837 10.4765 3.90
Warburg Pincus Trust
Emerging Markets Portfolio............ 10.4931 13.9572 33.01
International Equity Portfolio........ 10.3709 11.0109 6.17
Post-Venture Capital Portfolio........ 11.2546 12.5995 11.95
Small Company Growth Portfolio........ 11.0954 11.7614 6.00
</TABLE>
*Reflects unit value on the date of commencement of operations.
2
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY -- continued
These performance results do not reflect any applicable surrender charges or
contract charges. Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
Unit Value
-------------------------------------
Beginning of Percent Change
Period * June 30, 1999 in Unit Value
----------------- ----------------- --------------
<S> <C> <C> <C>
FUTURITY FOCUS CONTRACTS:
AIM Variable Insurance Fund, Inc.
V.I. Capital Appreciation Fund........ $10.0000 $11.1067 11.07%
V.I. Growth Fund...................... 10.0000 10.6100 6.10
V.I. Growth and Income Fund........... 10.0000 10.6030 6.03
V.I. International Equity Fund........ 10.0000 10.4739 4.74
The Alger American Fund
Growth Portfolio...................... 10.0000 10.4460 4.46
Income and Growth Portfolio........... 10.0000 10.1401 1.40
Small Capitalization Portfolio........ 10.0000 11.4395 14.40
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund............ 10.0000 10.5372 5.37
CORE Small Cap Equity Fund............ 10.0000 11.3765 13.77
CORE US Equity Fund................... 10.0000 10.5613 5.61
Growth and Income Fund................ 10.0000 10.7604 7.60
International Equity Fund............. 10.0000 10.0583 0.58
J.P. Morgan Series Trust II
Equity Portfolio...................... 10.0000 10.9671 9.67
International Opportunities
Portfolio............................ 10.0000 10.6359 6.36
Small Company Portfolio............... 10.0000 11.2659 12.66
Lord Abbett Series Fund, Inc.
Growth and Income Portfolio........... 10.0000 11.0181 10.18
MFS/Sun Life Series Trust
Capital Appreciation Series........... 10.0000 10.7550 7.55
Massachusetts Investors Trust
Series............................... 10.0000 10.2871 2.87
Emerging Growth Series................ 10.0000 10.7740 7.74
Government Securities Series.......... 10.0000 9.8459 (1.54)
High Yield Series..................... 10.0000 10.0593 0.59
Massachusetts Investors Growth Stock
Series............................... 10.0000 10.5288 5.29
New Discovery Series.................. 10.0000 10.9631 9.63
Total Return Series................... 10.0000 10.0265 0.27
Utilities Series...................... 10.0000 10.9052 9.05
OCC Accumulation Trust
Equity Portfolio...................... 10.0000 10.9355 9.36
Mid Cap Portfolio..................... 10.0000 10.8692 8.69
Small Cap Portfolio................... 10.0000 11.3645 13.65
Managed Portfolio..................... 10.0000 10.5980 5.98
Sun Capital Advisers Trust
Sun Capital Money Market Fund......... 10.0000 10.0864 0.86
Sun Capital Investment Grade Bond
Fund................................. 10.0000 9.8690 (1.31)
Sun Capital Real Estate Fund.......... 10.0000 11.1424 11.42
Warburg Pincus Trust
Emerging Markets Portfolio............ 10.0000 13.6856 36.86
International Equity Portfolio........ 10.0000 10.5420 5.42
Post-Venture Capital Portfolio........ 10.0000 11.1519 11.52
Small Company Growth Portfolio........ 10.0000 11.2368 12.37
</TABLE>
*Reflects unit value on the date of commencement of operations.
3
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- June 30, 1999
<TABLE>
<CAPTION>
ASSETS:
Investments in: Shares Cost Value
---------- ------------ ------------
<S> <C> <C> <C>
AIM Variable Insurance Fund, Inc.
V.I. Capital Appreciation Fund
("AIM1")........................... 122,869 $ 3,003,340 $ 3,391,178
V.I. Growth Fund ("AIM2")........... 347,274 8,797,597 9,695,887
V.I. Growth and Income Fund
("AIM3")........................... 471,297 11,467,789 12,823,998
V.I. International Equity Fund
("AIM4")........................... 391,181 7,612,093 8,015,294
The Alger American Fund
Growth Portfolio ("AL1")............ 292,805 15,764,440 16,350,255
Income and Growth Portfolio
("AL2")............................ 571,136 7,366,456 7,607,539
Small Capitalization Portfolio
("AL3")............................ 58,885 2,425,075 2,566,209
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund
("GS1")............................ 532,761 6,286,728 7,000,483
CORE Small Cap Equity Fund
("GS2")............................ 82,354 721,014 784,829
CORE US Equity Fund ("GS3")......... 688,199 8,126,043 8,939,709
Growth and Income Fund ("GS4")...... 303,543 3,283,844 3,502,885
International Equity Fund ("GS5")... 80,250 949,035 981,456
J.P. Morgan Series Trust II
Equity Portfolio ("JP1")............ 512,591 8,427,884 9,139,506
International Opportunities
Portfolio ("JP2").................. 113,262 1,221,205 1,324,034
Small Company Portfolio ("JP3")..... 43,739 509,049 550,239
Lord Abbett Series Fund, Inc.
Growth and Income Portfolio
("LA1")............................ 410,828 8,886,471 9,740,724
MFS/Sun Life Series Trust
Capital Appreciation Series
("CAS")............................ 202,594 8,663,897 8,953,629
Massachusetts Investors Trust Series
("MIT")............................ 9,641 353,342 361,616
Emerging Growth Series ("EGS")...... 443,661 9,951,071 11,383,494
Government Securities Series
("GSS")............................ 619,177 8,047,920 7,713,277
High Yield Series ("HYS")........... 690,151 6,343,982 6,116,765
Massachusetts Investors Growth Stock
Series ("MIS")..................... 29,531 370,080 389,312
Money Market Series ("MMS")......... 4,335,780 4,335,780 4,335,780
New Discovery Series ("NWD")........ 10,766 117,723 125,289
Total Return Series ("TRS")......... 11,628 221,989 222,630
Utilities Series ("UTS")............ 532,686 8,797,424 8,855,595
OCC Accumulation Trust
Equity Portfolio ("OP1")............ 241,429 9,133,296 9,686,148
Mid Cap Portfolio ("OP2")........... 274,657 2,649,797 2,815,232
Small Cap Portfolio ("OP3")......... 80,724 1,781,693 1,918,003
Managed Portfolio ("OP4")........... 25,537 1,111,258 1,138,166
Salomon Brothers Variable Series
Funds, Inc.
Variable Capital Fund ("SB1")....... 24,152 259,782 316,390
Variable Investors Fund ("SB2")..... 49,785 539,562 632,269
Variable Strategic Bond Fund
("SB3")............................ 551,380 5,626,966 5,541,371
Variable Total Return Fund
("SB4")............................ 486,067 5,038,727 5,293,270
Sun Capital Advisers Trust
Sun Capital Money Market Fund
("SCA1")........................... 2,201,494 2,201,494 2,201,494
Sun Capital Investment Grade Bond
Fund ("SCA2")...................... 269,670 2,630,150 2,598,943
Sun Capital Real Estate Fund
("SCA3")........................... 50,290 495,951 518,061
Warburg Pincus Trust
Emerging Markets Portolio ("WP1")... 38,658 346,522 424,084
International Equity Portfolio
("WP2")............................ 40,027 442,871 470,319
Post-Venture Capital Portfolio
("WP3")............................ 19,115 219,136 253,851
Small Company Growth Portfolio
("WP4")............................ 41,376 629,571 707,111
------------ ------------
$175,158,047 $185,386,324
------------
------------
LIABILITY:
Payable to sponsor................................................ (23,773)
------------
Net Assets.................................................. $185,362,551
------------
------------
</TABLE>
See notes to financial statements
4
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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
----------------------------------- Variable
Units Unit Value Value Annuities Total
--------- ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
NET ASSETS APPLICABLE TO CONTRACT OWNERS:
FUTURITY CONTRACTS:
AIM Variable Insurance Fund, Inc
V.I. Capital Appreciation Fund........... 186,003 $12.2515 $ 2,278,783 $ 15,633 $ 2,294,416
V.I. Growth Fund......................... 365,057 13.9819 5,104,119 13,194 5,117,313
V.I. Growth and Income Fund.............. 618,458 12.8525 7,948,648 -- 7,948,648
V.I. International Equity Fund........... 413,935 11.4057 4,721,057 12,581 4,733,638
The Alger American Fund
Growth Portfolio......................... 650,264 14.5691 9,473,794 17,159 9,490,953
Income and Growth Portfolio.............. 365,187 12.6929 4,635,230 -- 4,635,230
Small Capitalization Portfolio........... 140,908 11.6926 1,647,570 -- 1,647,570
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund............... 344,180 12.2901 4,229,983 25,375 4,255,358
CORE Small Cap Equity Fund............... 57,378 9.3665 537,428 19,902 557,330
CORE US Equity Fund...................... 466,821 12.7724 5,962,405 1,526 5,963,931
Growth and Income Fund................... 256,331 10.1446 2,600,361 -- 2,600,361
International Equity Fund................ 48,351 10.7114 517,926 11,777 529,703
J.P. Morgan Series Trust II
Equity Portfolio......................... 479,818 12.2413 5,872,097 15,679 5,887,776
International Opportunities Portfolio.... 88,354 10.2387 904,622 12,338 916,960
Small Company Portfolio.................. 31,482 8.8092 277,001 -- 277,001
Lord Abbett Series Fund, Inc.
Growth and Income Portfolio.............. 536,949 11.4960 6,172,664 -- 6,172,664
MFS/Sun Life Series Trust
Capital Appreciation Series.............. 487,702 12.2364 5,967,798 14,998 5,982,796
Emerging Growth Series................... 556,471 13.5443 7,537,209 15,668 7,552,877
Government Securities Series............. 466,072 10.2909 4,796,688 40,253 4,836,941
High Yield Series........................ 418,754 10.0819 4,221,835 29,853 4,251,688
Money Market Series...................... 414,408 10.4628 4,335,780 -- 4,335,780
Utilities Series......................... 584,502 11.3428 6,630,413 15,457 6,645,870
OCC Accumulation Trust
Equity Portfolio......................... 623,664 11.4940 7,168,897 1,494 7,170,391
Mid Cap Portfolio........................ 166,209 10.0899 1,677,012 14,144 1,691,156
Small Cap Portfolio...................... 171,906 8.4922 1,459,917 13,454 1,473,371
Salomon Brothers Variable Series Funds,
Inc.
Variable Capital Fund.................... 25,949 12.1929 316,390 -- 316,390
Variable Investors Fund.................. 53,978 11.7135 632,269 -- 632,269
Variable Strategic Bond Fund............. 533,020 10.3393 5,510,840 29,381 5,540,221
Variable Total Return Fund............... 501,546 10.5540 5,293,270 -- 5,293,270
Warburg Pincus Trust
Emerging Markets Portfolio............... 34,778 9.7863 340,060 14,419 354,479
International Equity Portfolio........... 37,373 9.6290 359,665 -- 359,665
Post-Venture Capital Portfolio........... 19,657 10.3344 203,140 15,673 218,813
Small Company Growth Portfolio........... 55,315 9.3785 518,766 -- 518,766
------------ ----------- ------------
$119,853,637 $349,958 $120,203,595
------------ ----------- ------------
------------ ----------- ------------
</TABLE>
See notes to financial statements
5
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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
----------------------------------- Variable
Units Unit Value Value Annuities Total
--------- ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
FUTURITY II CONTRACTS:
AIM Variable Insurance Fund, Inc.
V.I. Capital Appreciation Fund........... 86,750 $12.2891 $ 1,066,078 $ 2,652 $ 1,068,730
V.I. Growth Fund......................... 357,124 12.6659 4,523,309 25,416 4,548,725
V.I. Growth and Income Fund.............. 372,096 12.5894 4,684,494 2,483 4,686,977
V.I. International Equity Fund........... 291,799 10.9466 3,194,222 75,679 3,269,901
The Alger American Fund
Growth Portfolio......................... 518,229 12.9011 6,685,689 2,405 6,688,094
Income and Growth Portfolio.............. 231,652 11.8191 2,737,919 100,514 2,838,433
Small Capitalization Portfolio........... 69,046 12.7849 882,750 2,733 885,483
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund............... 217,434 12.2984 2,674,111 67,877 2,741,988
CORE Small Cap Equity Fund............... 19,690 11.3772 224,014 -- 224,014
CORE US Equity Fund...................... 237,497 12.2411 2,907,175 31,932 2,939,107
Growth and Income Fund................... 77,771 11.3656 883,909 -- 883,909
International Equity Fund................ 40,377 10.8089 436,407 -- 436,407
J.P. Morgan Series Trust II
Equity Portfolio......................... 260,354 12.1096 3,152,756 2,713 3,155,469
International Opportunities Portfolio.... 34,194 11.6399 398,019 2,657 400,676
Small Company Portfolio.................. 23,457 11.4422 268,404 -- 268,404
Lord Abbett Series Fund, Inc.
Growth and Income Portfolio.............. 283,234 12.0825 3,422,169 -- 3,422,169
MFS/Sun Life Series Trust
Capital Appreciation Series.............. 236,694 11.9647 2,832,103 35,819 2,867,922
Massachusetts Investors Trust Series..... 33,479 10.2838 344,288 -- 344,288
Emerging Growth Series................... 293,278 12.5366 3,676,905 40,952 3,717,857
Government Securities Series............. 283,086 9.6837 2,741,407 24,557 2,765,964
High Yield Series........................ 168,999 10.4198 1,760,969 49,526 1,810,495
Massachusetts Investors Growth Stock
Series.................................. 36,883 10.5255 388,156 -- 388,156
New Discovery Series..................... 9,365 10.9596 102,626 -- 102,626
Total Return Series...................... 22,110 10.0232 221,602 -- 221,602
Utilities Series......................... 180,561 11.5083 2,078,192 35,712 2,113,904
OCC Accumulation Trust
Equity Portfolio......................... 215,190 11.5059 2,476,255 6,292 2,482,547
Mid Cap Portfolio........................ 97,181 11.0386 1,072,727 24,610 1,097,337
Small Cap Portfolio...................... 41,272 10.6471 439,414 2,987 442,401
Managed Portfolio........................ 100,912 11.2136 1,131,612 -- 1,131,612
Sun Capital Advisers Trust
Sun Capital Money Market Fund............ 206,092 10.1583 2,093,624 -- 2,093,624
Sun Capital Investment Grade Bond Fund... 252,510 9.8573 2,488,820 44,378 2,533,198
Sun Capital Real Estate Fund............. 48,824 10.4765 511,485 3,427 514,912
Warburg Pincus Trust
Emerging Markets Portfolio............... 4,584 13.9572 63,974 3,621 67,595
International Equity Portfolio........... 9,836 11.0109 108,300 -- 108,300
Post-Venture Capital Portfolio........... 2,556 12.5995 32,205 -- 32,205
Small Company Growth Portfolio........... 15,920 11.7614 187,221 -- 187,221
------------ ----------- ------------
$ 62,893,310 $588,942 $ 63,482,252
------------ ----------- ------------
------------ ----------- ------------
</TABLE>
See notes to financial statements
6
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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
----------------------------------- Variable
Units Unit Value Value Annuities Total
--------- ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
FUTURITY FOCUS CONTRACTS:
AIM Variable Insurance Fund, Inc.
V.I. Capital Appreciation Fund........... 2,386 $11.1067 $ 26,497 $ -- $ 26,497
V.I. Growth Fund......................... 2,710 10.6100 28,749 -- 28,749
V.I. Growth and Income Fund.............. 17,757 10.6030 188,273 -- 188,273
V.I. International Equity Fund........... 1,024 10.4739 10,723 -- 10,723
The Alger American Fund
Growth Portfolio......................... 16,289 10.4460 170,156 -- 170,156
Income and Growth Portfolio.............. 13,170 10.1401 133,547 -- 133,547
Small Capitalization Portfolio........... 2,894 11.4395 33,103 -- 33,103
Goldman Sachs Variable Insurance Trust
CORE Large Cap Growth Fund............... 100 10.5372 1,054 -- 1,054
CORE Small Cap Equity Fund............... 100 11.3765 1,138 -- 1,138
CORE US Equity Fund...................... 3,467 10.5613 36,612 -- 36,612
Growth and Income Fund................... 1,730 10.7604 18,615 -- 18,615
International Equity Fund................ 1,453 10.0583 14,619 -- 14,619
J.P. Morgan Series Trust II
Equity Portfolio......................... 8,683 10.9671 95,227 -- 95,227
International Opportunities Portfolio.... 520 10.6359 5,529 -- 5,529
Small Company Portfolio.................. 429 11.2659 4,834 -- 4,834
Lord Abbett Series Fund, Inc.
Growth and Income Portfolio.............. 13,241 11.0181 145,891 -- 145,891
MFS/Sun Life Series Trust
Capital Appreciation Series.............. 9,419 10.7550 101,295 -- 101,295
Massachusetts Investors Trust Series..... 1,684 10.2871 17,328 -- 17,328
Emerging Growth Series................... 10,279 10.7740 110,747 -- 110,747
Government Securities Series............. 11,151 9.8459 109,754 -- 109,754
High Yield Series........................ 5,346 10.0593 53,776 -- 53,776
Massachusetts Investors Growth Stock
Series.................................. 110 10.5288 1,156 -- 1,156
New Discovery Series..................... 2,067 10.9631 22,663 -- 22,663
Total Return Series...................... 103 10.0265 1,028 -- 1,028
Utilities Series......................... 8,728 10.9052 95,171 -- 95,171
OCC Accumulation Trust
Equity Portfolio......................... 3,048 10.9355 33,333 -- 33,333
Mid Cap Portfolio........................ 2,363 10.8692 25,682 -- 25,682
Small Cap Portfolio...................... 100 11.3645 1,137 -- 1,137
Managed Portfolio........................ 618 10.5980 6,554 -- 6,554
Sun Capital Advisers Trust
Sun Capital Money Market Fund............ 10,695 10.0864 107,870 -- 107,870
Sun Capital Investment Grade Bond Fund... 6,639 9.8690 65,533 -- 65,533
Sun Capital Real Estate Fund............. 283 11.1424 3,148 -- 3,148
Warburg Pincus Trust
Emerging Markets Portfolio............... 100 13.6856 1,369 -- 1,369
International Equity Portfolio........... 223 10.5420 2,354 -- 2,354
Post-Venture Capital Portfolio........... 100 11.1519 1,115 -- 1,115
Small Company Growth Portfolio........... 100 11.2368 1,124 -- 1,124
------------ ----------- ------------
$ 1,676,704 $ -- $ 1,676,704
------------ ----------- ------------
Net Assets.......................................................... $184,423,651 $938,900 $185,362,551
------------ ----------- ------------
------------ ----------- ------------
</TABLE>
See notes to financial statements
7
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Six Months Ended June 30, 1999
<TABLE>
<CAPTION>
AIM1 AIM2 AIM3 AIM4 AL1
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 35,984 $ -- $ -- $ -- $1,046,127
Mortality and expense risk charges.... (15,091) (33,208) (45,285) (27,803) (54,795)
Distribution expense charges.......... (1,811) (3,985) (5,434) (3,337) (6,575)
------------- -------------- ------------- ------------- -------------
Net investment income (loss)...... $ 19,082 $ (37,193) $ (50,719) $ (31,140) $ 984,757
------------- -------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $434,623 $ 381,197 $ 886,006 $1,227,091 $ 930,156
Cost of investments sold............ (412,011) (334,552) (767,389) (1,197,674) (724,639)
------------- -------------- ------------- ------------- -------------
Net realized gains (losses)....... $ 22,612 $ 46,645 $ 118,617 $ 29,417 $ 205,517
------------- -------------- ------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $387,838 $ 898,290 $1,356,209 $ 403,201 $ 585,815
Beginning of period................. 128,463 230,796 401,885 135,808 496,292
------------- -------------- ------------- ------------- -------------
Change in unrealized appreciation
(depreciation)................... $259,375 $ 667,494 $ 954,324 $ 267,393 $ 89,523
------------- -------------- ------------- ------------- -------------
Realized and unrealized gains
(losses)........................... $281,987 $ 714,139 $1,072,941 $ 296,810 $ 295,040
------------- -------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $301,069 $ 676,946 $1,022,222 $ 265,670 $1,279,797
------------- -------------- ------------- ------------- -------------
------------- -------------- ------------- ------------- -------------
<CAPTION>
AL3 GS1 GS2 GS3 GS4
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $217,834 $ -- $ -- $ -- $ --
Mortality and expense risk charges.... (9,247) (25,244) (2,683) (36,994) (15,755)
Distribution expense charges.......... (1,110) (3,029) (322) (4,439) (1,891)
------------- -------------- ------------- ------------- -------------
Net investment income (loss)...... $207,477 $ (28,273) $ (3,005) $ (41,433) $ (17,646)
------------- -------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $186,898 $ 363,171 $ 40,415 $2,228,194 $ 374,887
Cost of investments sold............ (182,783) (326,484) (47,497) (2,013,419) (400,522)
------------- -------------- ------------- ------------- -------------
Net realized gains (losses)....... $ 4,115 $ 36,687 $ (7,082) $ 214,775 $ (25,635)
------------- -------------- ------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $141,134 $ 713,755 $ 63,815 $ 813,666 $ 219,041
Beginning of period................. 96,395 229,353 10,059 296,953 (71,917)
------------- -------------- ------------- ------------- -------------
Change in unrealized appreciation
(depreciation)................... $ 44,739 $ 484,402 $ 53,756 $ 516,713 $ 290,958
------------- -------------- ------------- ------------- -------------
Realized and unrealized gains
(losses)........................... $ 48,854 $ 521,089 $ 46,674 $ 731,488 $ 265,323
------------- -------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $256,331 $ 492,816 $ 43,669 $ 690,055 $ 247,677
------------- -------------- ------------- ------------- -------------
------------- -------------- ------------- ------------- -------------
<CAPTION>
AL2
Sub-Account
-------------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $318,109
Mortality and expense risk charges.... (29,016)
Distribution expense charges.......... (3,482)
-------------
Net investment income (loss)...... $285,611
-------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $756,835
Cost of investments sold............ (657,335)
-------------
Net realized gains (losses)....... $ 99,500
-------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $241,083
Beginning of period................. 271,924
-------------
Change in unrealized appreciation
(depreciation)................... $(30,841)
-------------
Realized and unrealized gains
(losses)........................... $ 68,659
-------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $354,270
-------------
-------------
GS5
Sub-Account
-------------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $--
Mortality and expense risk charges.... (3,711)
Distribution expense charges.......... (445)
-------------
Net investment income (loss)...... $ (4,156)
-------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $117,612
Cost of investments sold............ (114,454)
-------------
Net realized gains (losses)....... $ 3,158
-------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 32,421
Beginning of period................. 16,662
-------------
Change in unrealized appreciation
(depreciation)................... $ 15,759
-------------
Realized and unrealized gains
(losses)........................... $ 18,917
-------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 14,761
-------------
-------------
</TABLE>
See notes to financial statements
8
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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>
JP1 JP2 JP3 LA1 CAS
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 67,259 $ 3,771 $ 284 $ -- $ 810,380
Mortality and expense risk charges.... (33,956) (5,072) (2,016) (37,339) (39,064)
Distribution expense charges.......... (4,075) (609) (242) (4,481) (4,688)
------------- -------------- ------------- ------------- -------------
Net investment income (loss)...... $ 29,228 $ (1,910) $ (1,974) $ (41,820) $ 766,628
------------- -------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $979,274 $ 74,374 $ 124,352 $ 744,199 $1,416,343
Cost of investments sold............ (883,925) (75,342) (132,778) (716,499) (1,281,778)
------------- -------------- ------------- ------------- -------------
Net realized gains (losses)....... $ 95,349 $ (968) $ (8,426) $ 27,700 $ 134,565
------------- -------------- ------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $711,622 $ 102,829 $ 41,190 $ 854,253 $ 289,732
Beginning of period................. 73,661 7,372 (1,240) 21,161 629,805
------------- -------------- ------------- ------------- -------------
Change in unrealized appreciation
(depreciation)................... $637,961 $ 95,457 $ 42,430 $ 833,092 $(340,073)
------------- -------------- ------------- ------------- -------------
Realized and unrealized gains
(losses)........................... $733,310 $ 94,489 $ 34,004 $ 860,792 $(205,508)
------------- -------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $762,538 $ 92,579 $ 32,030 $ 818,972 $ 561,120
------------- -------------- ------------- ------------- -------------
------------- -------------- ------------- ------------- -------------
<CAPTION>
MIS
EGS GSS HYS Sub- MMS
Sub-Account Sub-Account Sub-Account Account(a) Sub-Account
------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $139,055 $ 261,158 $ 363,604 $ -- $ 101,859
Mortality and expense risk charges.... (46,847) (25,846) (23,540) (276) (29,459)
Distribution expense charges.......... (5,622) (3,102) (2,825) (33) (3,535)
------------- -------------- ------------- ------------- -------------
Net investment income (loss)...... $ 86,586 $ 232,210 $ 337,239 $ (309) $ 68,865
------------- -------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. 1$,397,836 $ 799,267 $ 562,967 $ 430 $4,113,732
Cost of investments sold............ (1,231,878) (800,953) (586,784) (421) (4,113,732)
------------- -------------- ------------- ------------- -------------
Net realized gains (losses)....... $165,958 $ (1,686) $ (23,817) $ 9 $ --
------------- -------------- ------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... 1$,432,423 $(334,643) $(227,217) $ 19,232 $ --
Beginning of period................. 777,281 13,091 (2,792) -- --
------------- -------------- ------------- ------------- -------------
Change in unrealized appreciation
(depreciation)....................... $655,142 $(347,734) $(224,425) $ 19,232 $ --
------------- -------------- ------------- ------------- -------------
Realized and unrealized gains
(losses)........................... $821,100 $(349,420) $(248,242) $ 19,241 $ --
------------- -------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $907,686 $(117,210) $ 88,997 $ 18,932 $ 68,865
------------- -------------- ------------- ------------- -------------
------------- -------------- ------------- ------------- -------------
<CAPTION>
MIT
Sub-Account(a)
-------------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $--
Mortality and expense risk charges.... (174)
Distribution expense charges.......... (21)
------
Net investment income (loss)...... $ (195)
------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 335
Cost of investments sold............ (333)
------
Net realized gains (losses)....... $ 2
------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 8,274
Beginning of period................. --
------
Change in unrealized appreciation
(depreciation)................... $ 8,274
------
Realized and unrealized gains
(losses)........................... $ 8,276
------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 8,081
------
------
NWD
Sub-Account(a)
-------------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $--
Mortality and expense risk charges.... (83)
Distribution expense charges.......... (10)
------
Net investment income (loss)...... $ (93)
------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 242
Cost of investments sold............ (231)
------
Net realized gains (losses)....... $ 11
------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 7,566
Beginning of period................. --
------
Change in unrealized appreciation
(depreciation)....................... $ 7,566
------
Realized and unrealized gains
(losses)........................... $ 7,577
------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 7,484
------
------
</TABLE>
(a) For the period May 17, 1999 (commencement of operations) through June 30,
1999.
See notes to financial statements
9
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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>
TRS UTS OP1 OP2 OP3
Sub-Account(a) Sub-Account Sub-Account Sub-Account Sub-Account
------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $-- $ 752,022 $ 269,760 $ -- $ 6,172
Mortality and expense risk charges.... (174) (34,073) (39,439) (10,275) (7,481)
Distribution expense charges.......... (21) (4,089) (4,733) (1,233) (898)
------------- -------------- ------------- ------------- -------------
Net investment income (loss)...... $ (195) $ 713,860 $ 225,588 $ (11,508) $ (2,207)
------------- -------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 144 $ 730,711 $ 994,412 $ 674,386 $ 102,321
Cost of investments sold............ (145) (693,877) (976,596) (665,791) (110,011)
------------- -------------- ------------- ------------- -------------
Net realized gains (losses)....... $ (1) $ 36,834 $ 17,816 $ 8,595 $ (7,690)
------------- -------------- ------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 641 $ 58,171 $ 552,852 $ 165,435 $ 136,310
Beginning of period................. -- 203,450 201,803 41,964 28,952
------------- -------------- ------------- ------------- -------------
Change in unrealized appreciation
(depreciation)................... $ 641 $(145,279) $ 351,049 $ 123,471 $ 107,358
------------- -------------- ------------- ------------- -------------
Realized and unrealized gains
(losses)........................... $ 640 $(108,445) $ 368,865 $ 132,066 $ 99,668
------------- -------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 445 $ 605,415 $ 594,453 $ 120,558 $ 97,461
------------- -------------- ------------- ------------- -------------
------------- -------------- ------------- ------------- -------------
<CAPTION>
SB1 SB2 SB3 SB4 SCA1
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $-- $ -- $ -- $ -- $ 16,792
Mortality and expense risk charges.... (1,686) (2,961) (26,415) (25,491) (4,873)
Distribution expense charges.......... (202) (355) (3,170) (3,059) (585)
------------- -------------- ------------- ------------- -------------
Net investment income (loss)...... $ (1,888) $ (3,316) $ (29,585) $ (28,550) $ 11,334
------------- -------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 36,158 $ 35,076 $ 757,315 $ 524,345 $ 917,299
Cost of investments sold............ (33,676) (32,579) (771,560) (512,025) (917,299)
------------- -------------- ------------- ------------- -------------
Net realized gains (losses)....... $ 2,482 $ 2,497 $ (14,245) $ 12,320 $ --
------------- -------------- ------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 56,608 $ 92,707 $ (85,595) $ 254,543 $ --
Beginning of period................. 23,271 19,454 (66,852) 64,469 --
------------- -------------- ------------- ------------- -------------
Change in unrealized appreciation
(depreciation)................... $ 33,337 $ 73,253 $ (18,743) $ 190,074 $ --
------------- -------------- ------------- ------------- -------------
Realized and unrealized gains
(losses)........................... $ 35,819 $ 75,750 $ (32,988) $ 202,394 $ --
------------- -------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 33,931 $ 72,434 $ (62,573) $ 173,844 $ 11,334
------------- -------------- ------------- ------------- -------------
------------- -------------- ------------- ------------- -------------
<CAPTION>
OP4
Sub-Account
-------------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 7,353
Mortality and expense risk charges.... (2,624)
Distribution expense charges.......... (315)
-------------
Net investment income (loss)...... $ 4,414
-------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 78,810
Cost of investments sold............ (76,888)
-------------
Net realized gains (losses)....... $ 1,922
-------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 26,908
Beginning of period................. 54
-------------
Change in unrealized appreciation
(depreciation)................... $ 26,854
-------------
Realized and unrealized gains
(losses)........................... $ 28,776
-------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 33,190
-------------
-------------
SCA2
Sub-Account
-------------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 25,055
Mortality and expense risk charges.... (5,372)
Distribution expense charges.......... (645)
-------------
Net investment income (loss)...... $ 19,038
-------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $152,456
Cost of investments sold............ (154,120)
-------------
Net realized gains (losses)....... $ (1,664)
-------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $(31,207)
Beginning of period................. 21
-------------
Change in unrealized appreciation
(depreciation)................... $(31,228)
-------------
Realized and unrealized gains
(losses)........................... $(32,892)
-------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $(13,854)
-------------
-------------
</TABLE>
(a) For the period May 17, 1999 (commencement of operations) through June 30,
1999.
See notes to financial statements
10
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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>
SCA3 WP1 WP2 WP3 WP4
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 7 $ 1,413 $ 854 $ -- $ --
Mortality and expense risk charges.... (1,411) (1,678) (1,966) (1,022) (3,118)
Distribution expense charges.......... (169) (201) (236) (123) (374)
------------- -------------- ------------- ------------- -------------
Net investment income (loss)...... $ (1,573) $ (466) $ (1,348) $ (1,145) $ (3,492)
------------- -------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 77,399 $ 176,263 $ 29,071 $ 32,959 $ 198,680
Cost of investments sold............ (76,430) (147,817) (31,581) (34,799) (191,527)
------------- -------------- ------------- ------------- -------------
Net realized gains (losses)....... $ 969 $ 28,446 $ (2,510) $ (1,840) $ 7,153
------------- -------------- ------------- ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ 22,110 $ 77,562 $ 27,448 $ 34,715 $ 77,540
Beginning of period................. 97 (3,352) (1,858) 7,438 29,531
------------- -------------- ------------- ------------- -------------
Change in unrealized appreciation
(depreciation)................... $ 22,013 $ 80,914 $ 29,306 $ 27,277 $ 48,009
------------- -------------- ------------- ------------- -------------
Realized and unrealized gains
(losses)........................... $ 22,982 $ 109,360 $ 26,796 $ 25,437 $ 55,162
------------- -------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 21,409 $ 108,894 $ 25,448 $ 24,292 $ 51,670
------------- -------------- ------------- ------------- -------------
------------- -------------- ------------- ------------- -------------
</TABLE>
See notes to financial statements
11
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AIM1 AIM2 AIM3
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Period Period Period
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998(a) 1999 1998(a) 1999 1998(b)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 19,082 $ (159) $ (37,193) $ 144,861 $ (50,719) $ 32,869
Net realized gains (losses)........... 22,612 (6,126) 46,645 2,691 118,617 (547)
Net unrealized gains (losses)......... 259,375 128,463 667,494 230,796 954,324 401,885
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 301,069 $ 122,178 $ 676,946 $ 378,348 $1,022,222 $ 434,207
------------ ------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $ 937,952 $1,229,109 $3,542,088 $2,015,774 $3,731,996 $2,099,297
Net transfers between Sub-Accounts
and Fixed Account.................. 630,432 212,774 2,959,340 193,750 4,496,963 1,293,608
Withdrawals, surrenders,
annuitizations and contract
charges............................ (49,370) (10,395) (89,822) (18,667) (206,134) (50,636)
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation activity......... $1,519,014 $1,431,488 $6,411,606 $2,190,857 $8,022,825 $3,342,269
------------ ------------ ------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ 17,692 $ -- $ 38,358 $ -- $ 2,506 $ --
Annuity payments.................... (263) -- (228) -- (31) --
Adjustments to annuity reserve...... (1,535) -- (1,100) -- (100) --
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ 15,894 $ -- $ 37,030 $ -- $ 2,375 $ --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $1,534,908 $1,431,488 $6,448,636 $2,190,857 $8,025,200 $3,342,269
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $1,835,977 $1,553,666 $7,125,582 $2,569,205 $9,047,422 $3,776,476
NET ASSETS:
Beginning of period................... 1,553,666 -- 2,569,205 -- 3,776,476 --
------------ ------------ ------------ ------------ ------------ ------------
End of period......................... $3,389,643 $1,553,666 $9,694,787 $2,569,205 $12,823,898 $3,776,476
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(a) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
See notes to financial statements
12
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
AIM4 AL1 AL2
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Period Period Period
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998(a) 1999 1998(b) 1999 1998(b)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (31,140) $ 8,211 $ 984,757 $ 6,203 $ 285,611 $ 6,890
Net realized gains (losses)........... 29,417 (51,782) 205,517 (18,561) 99,500 (5,236)
Net unrealized gains (losses)......... 267,393 135,808 89,523 496,292 (30,841) 271,924
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 265,670 $ 92,237 $1,279,797 $ 483,934 $ 354,270 $ 273,578
------------ ------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $1,855,966 $1,910,796 $5,316,882 $2,399,047 $2,415,517 $1,751,908
Net transfers between Sub-Accounts
and Fixed Account.................. 3,622,741 416,832 6,481,871 768,779 2,940,443 350,911
Withdrawals, surrenders,
annuitizations and contract
charges............................ (226,833) (8,627) (386,418) (12,258) (525,826) (47,719)
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation activity......... $5,251,874 $2,319,001 $11,412,335 $3,155,568 $4,830,134 $2,055,100
------------ ------------ ------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ 87,014 $ -- $ 18,907 $ -- $ 95,365 $ --
Annuity payments.................... (502) -- (286) -- (908) --
Adjustments to annuity reserve...... (1,032) -- (1,052) -- (329) --
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ 85,480 $ -- $ 17,569 $ -- $ 94,128 $ --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $5,337,354 $2,319,001 $11,429,904 $3,155,568 $4,924,262 $2,055,100
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $5,603,024 $2,411,238 $12,709,701 $3,639,502 $5,278,532 $2,328,678
NET ASSETS:
Beginning of period................... 2,411,238 -- 3,639,502 -- 2,328,678 --
------------ ------------ ------------ ------------ ------------ ------------
End of period......................... $8,014,262 $2,411,238 $16,349,203 $3,639,502 $7,607,210 $2,328,678
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(a) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
See notes to financial statements
13
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
AL3 GS1 GS2
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Period Period Period
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998(b) 1999 1998(c) 1999 1998(a)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 207,477 $ (1,923) $ (28,273) $ (6,002) $ (3,005) $ (383)
Net realized gains (losses)........... 4,115 (3,015) 36,687 (6,745) (7,082) (5,269)
Net unrealized gains (losses)......... 44,739 96,395 484,402 229,353 53,756 10,059
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 256,331 $ 91,457 $ 492,816 $ 216,606 $ 43,669 $ 4,407
------------ ------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $ 780,921 $ 437,232 $2,276,391 $1,763,717 $ 53,712 $ 258,204
Net transfers between Sub-Accounts
and Fixed Account.................. 761,821 285,561 1,964,656 357,499 408,019 20,679
Withdrawals, surrenders,
annuitizations and contract
charges............................ (41,356) (8,294) (150,733) (8,712) (22,422) (614)
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation activity......... $1,501,386 $ 714,499 $4,090,314 $2,112,504 $ 439,309 $ 278,269
------------ ------------ ------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ 2,569 $ -- $ 89,247 $ -- $ 19,466 $ --
Annuity payments.................... (33) -- (1,004) -- (291) --
Adjustments to annuity reserve...... (53) -- (2,083) -- (2,347) --
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ 2,483 $ -- $ 86,160 $ -- $ 16,828 $ --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $1,503,869 $ 714,499 $4,176,474 $2,112,504 $ 456,137 $ 278,269
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $1,760,200 $ 805,956 $4,669,290 $2,329,110 $ 499,806 $ 282,676
NET ASSETS:
Beginning of period................... 805,956 -- 2,329,110 -- 282,676 --
------------ ------------ ------------ ------------ ------------ ------------
End of period......................... $2,566,156 $ 805,956 $6,998,400 $2,329,110 $ 782,482 $ 282,676
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(a) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
(c) For the period March 12, 1998 (commencement of operations) through December
31, 1998.
See notes to financial statements
14
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GS3 GS4 GS5
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Period Period Period
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998(a) 1999 1998(a) 1999 1998(d)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (41,433) $ (858) $ (17,646) $ 6,362 $ (4,156) $ 866
Net realized gains (losses)........... 214,775 (9,820) (25,635) (8,821) 3,158 (2,816)
Net unrealized gains (losses)......... 516,713 296,953 290,958 (71,917) 15,759 16,662
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 690,055 $ 286,275 $ 247,677 $ (74,376) $ 14,761 $ 14,712
------------ ------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $2,187,220 $2,581,300 $ 534,575 $1,443,172 $ 340,820 $ 238,188
Net transfers between Sub-Accounts
and Fixed Account.................. 2,977,304 407,943 984,713 493,897 316,350 72,560
Withdrawals, surrenders,
annuitizations and contract
charges............................ (167,647) (56,166) (112,960) (13,813) (27,900) (76)
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation activity......... $4,996,877 $2,933,077 $1,406,328 $1,923,256 $ 629,270 $ 310,672
------------ ------------ ------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ 33,393 $ -- $ -- $ -- $ 12,226 $ --
Annuity payments.................... 32 -- -- -- (185) --
Adjustments to annuity reserve...... (59) -- -- -- (727) --
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ 33,366 $ -- $ -- $ -- $ 11,314 $ --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $5,030,243 $2,933,077 $1,406,328 $1,923,256 $ 640,584 $ 310,672
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $5,720,298 $3,219,352 $1,654,005 $1,848,880 $ 655,345 $ 325,384
NET ASSETS:
Beginning of period................... 3,219,352 -- 1,848,880 -- 325,384 --
------------ ------------ ------------ ------------ ------------ ------------
End of period......................... $8,939,650 $3,219,352 $3,502,885 $1,848,880 $ 980,729 $ 325,384
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(a) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(d) For the period March 17, 1998 (commencement of operations) through December
31, 1998.
See notes to financial statements
15
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
JP1 JP2 JP3
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Period Period Period
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 (b) 1999 1998 (b) 1999 1998 (b)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 29,228 $ 232,080 $ (1,910) $ 2,468 $ (1,974) $ 3,318
Net realized gains (losses)........... 95,349 (42,054) (968) (1,892) (8,426) (3,060)
Net unrealized gains (losses)......... 637,961 73,661 95,457 7,372 42,430 (1,240)
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 762,538 $ 263,687 $ 92,579 $ 7,948 $ 32,030 $ (982)
------------ ------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $2,970,677 $1,481,091 $ 394,372 $ 401,185 $ 208,313 $ 126,177
Net transfers between Sub-Accounts
and Fixed Account.................. 2,308,407 1,474,721 382,868 78,547 120,774 65,945
Withdrawals, surrenders,
annuitizations and contract
charges............................ (105,015) (33,652) (45,431) (2,264) (1,248) (770)
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation activity......... $5,174,069 $2,922,160 $ 731,809 $ 477,468 $ 327,839 $ 191,352
------------ ------------ ------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ 17,318 $ -- $ 14,449 $ -- $ -- $ --
Annuity payments.................... (266) -- (219) -- -- --
Adjustments to annuity reserve...... (1,034) -- (869) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ 16,018 $ -- $ 13,361 $ -- $ -- $ --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $5,190,087 $2,922,160 $ 745,170 $ 477,468 $ 327,839 $ 191,352
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $5,952,625 $3,185,847 $ 837,749 $ 485,416 $ 359,869 $ 190,370
NET ASSETS:
Beginning of period................... 3,185,847 -- 485,416 -- 190,370 --
------------ ------------ ------------ ------------ ------------ ------------
End of period......................... $9,138,472 $3,185,847 $1,323,165 $ 485,416 $ 550,239 $ 190,370
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
See notes to financial statements
16
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
LA1 CAS
Sub-Account Sub-Account
--------------------------- ---------------------------
Period Period
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1999 1998 (b) 1999 1998 (c)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (41,820) $ 193,351 $ 766,628 $ (9,437)
Net realized gains (losses)........... 27,700 (3,464) 134,565 (34,447)
Net unrealized gains (losses)......... 833,092 21,161 (340,073) 629,805
------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 818,972 $ 211,048 $ 561,120 $ 585,921
------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $2,589,160 $2,829,156 $2,167,777 $1,880,023
Net transfers between Sub-Accounts
and Fixed Account.................. 3,142,269 363,979 1,767,932 2,200,342
Withdrawals, surrenders,
annuitizations and contract
charges............................ (191,955) (21,905) (211,142) (47,046)
------------ ------------ ------------ ------------
Net accumulation activity......... $5,539,474 $3,171,230 $3,724,567 $4,033,319
------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ -- $ -- $ 49,260 $ --
Annuity payments.................... -- -- (558) --
Adjustments to annuity reserve...... -- -- (1,616) --
------------ ------------ ------------ ------------
Net annuitization activity........ $ -- $ -- $ 47,086 $ --
------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $5,539,474 $3,171,230 $3,771,653 $4,033,319
------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $6,358,446 $3,382,278 $4,332,773 $4,619,240
NET ASSETS:
Beginning of period................... 3,382,278 -- 4,619,240 --
------------ ------------ ------------ ------------
End of period......................... $9,740,724 $3,382,278 $8,952,013 $4,619,240
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
(c) For the period February 26, 1998 (commencement of operations) through
December 31, 1998.
See notes to financial statements
17
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MIT EGS GSS
Sub-Account Sub-Account Sub-Account
------------ --------------------------- ---------------------------
Period Period Period
Ended Ended Year Ended Ended Year Ended
June 30, June 30, December 31, June 30, December 31,
1999 (a) 1999 1998 (b) 1999 1998 (b)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (195) $ 86,586 $ (9,825) $ 232,210 $ (5,092)
Net realized gains (losses)........... 2 165,958 (43,942) (1,686) 23,326
Net unrealized gains (losses)......... 8,274 655,142 777,281 (347,734) 13,091
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 8,081 $ 907,686 $ 723,514 $ (117,210) $ 31,325
------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $ 296,470 $3,270,517 $3,011,641 $2,128,210 $1,300,822
Net transfers between Sub-Accounts
and Fixed Account.................. 57,274 2,542,213 1,178,725 4,125,800 323,387
Withdrawals, surrenders,
annuitizations and contract
charges............................ (209) (268,196) (36,641) (91,153) (92,714)
------------ ------------ ------------ ------------ ------------
Net accumulation activity........... $ 353,535 $5,544,534 $4,153,725 $6,162,857 $1,531,495
------------ ------------ ------------ ------------ ------------
Annuitization activity:...............
Annuitizations...................... $ -- $ 54,604 $ -- $ 26,994 $ 40,389
Annuity payments.................... -- (569) -- (1,473) (1,490)
Annuity transfers................... -- -- -- -- 40,390
Adjustments to annuity reserve...... -- (2,013) -- (143) (475)
------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ -- $ 52,022 $ -- $ 25,378 $ 78,814
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $ 353,535 $5,596,556 $4,153,725 $6,188,235 $1,610,309
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $ 361,616 $6,504,242 $4,877,239 $6,071,025 $1,641,634
NET ASSETS:
Beginning of period................... -- 4,877,239 -- 1,641,634 --
------------ ------------ ------------ ------------ ------------
End of period......................... $ 361,616 $11,381,481 $4,877,239 $7,712,659 $1,641,634
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
</TABLE>
(a) For the period May 17, 1999 (commencement of operations) through June 30,
1999.
(b) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
See notes to financial statements
18
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
HYS MIS MMS
Sub-Account Sub-Account Sub-Account
--------------------------- ------------ ---------------------------
Period Period Period
Ended Year Ended Ended Ended Year Ended
June 30, December 31, June 30, June 30, December 31,
1999 1998 (c) 1999 (a) 1999 1998 (b)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 337,239 $ (239) $ (309) $ 68,865 $ 48,895
Net realized gains (losses)........... (23,817) (17,756) 9 -- --
Net unrealized gains (losses)......... (224,425) (2,792) 19,232 -- --
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 88,997 $ (20,787) $ 18,932 $ 68,865 $ 48,895
------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $1,475,754 $1,355,408 $ 346,729 $ 190,898 $5,275,423
Net transfers between Sub-Accounts
and Fixed Account.................. 2,532,272 786,221 23,867 613,075 (1,482,996)
Withdrawals, surrenders,
annuitizations and contract
charges............................ (174,238) (6,849) (216) (366,977) (11,403)
------------ ------------ ------------ ------------ ------------
Net accumulation activity........... $3,833,788 $2,134,780 $ 370,380 $ 436,996 $3,781,024
------------ ------------ ------------ ------------ ------------
Annuitization activity:...............
Annuitizations...................... $ 80,856 $ -- $ -- $ -- $ --
Annuity payments.................... (869) -- -- -- --
Adjustments to annuity reserve...... (806) -- -- -- --
------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ 79,181 $ -- $ -- $ -- $ --
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $3,912,969 $2,134,780 $ 370,380 $ 436,996 $3,781,024
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $4,001,966 $2,113,993 $ 389,312 $ 505,861 $3,829,919
NET ASSETS:
Beginning of period................... 2,113,993 -- -- 3,829,919 --
------------ ------------ ------------ ------------ ------------
End of period......................... $6,115,959 $2,113,993 $ 389,312 $4,335,780 $3,829,919
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
</TABLE>
(a) For the period May 17, 1999 (commencement of operations) through June 30,
1999.
(b) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(c) For the period February 26, 1998 (commencement of operations) through
December 31, 1998.
See notes to financial statements
19
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
NWD TRS UTS OP1
Sub-Account Sub-Account Sub-Account Sub-Account
------------ ------------ --------------------------- ---------------------------
Period Period Period Period
Ended Ended Ended Year Ended Ended Year Ended
June 30, June 30, June 30, December 31, June 30, December 31,
1999 (a) 1999 (a) 1999 1998 (c) 1999 1998 (b)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (93) $ (195) $713,860 $ (7,859) $ 225,588 $ (13,451)
Net realized gains (losses)........... 11 (1) 36,834 (1,131) 17,816 (15,929)
Net unrealized gains (losses)......... 7,566 641 (145,279) 203,450 351,049 201,803
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 7,484 $ 445 $605,415 $194,460 $ 594,453 $ 172,423
------------ ------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $113,404 $ 217,116 1$,779,234 1$,634,726 $1,825,106 $2,532,266
Net transfers between Sub-Accounts
and Fixed Account.................. 4,561 6,069 3,752,222 1,078,739 3,588,019 1,176,486
Withdrawals, surrenders,
annuitizations and contract
charges............................ (160) (1,000) (228,070) (10,177) (188,631) (21,619)
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation activity......... $117,805 $ 222,185 5$,303,386 2$,703,288 $5,224,494 $3,687,133
------------ ------------ ------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $-- $ -- $ 49,607 $-- $ 7,682 $ --
Annuity payments.................... -- -- (561) -- (37) --
Adjustments to annuity reserve...... -- -- (650) -- 123 --
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $-- $ -- $ 48,396 $-- $ 7,768 $ --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $117,805 $ 222,185 5$,351,782 2$,703,288 $5,232,262 $3,687,133
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $125,289 $ 222,630 5$,957,197 2$,897,748 $5,826,715 $3,859,556
NET ASSETS:
Beginning of period................... -- -- 2,897,748 -- 3,859,556 --
------------ ------------ ------------ ------------ ------------ ------------
End of period......................... $125,289 $ 222,630 8$,854,945 2$,897,748 $9,686,271 $3,859,556
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(a) For the period May 17, 1999 (commencement of operations) through June 30,
1999.
(b) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(c) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
See notes to financial statements
20
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
OP2 OP3 OP4
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Period Period Period
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 (b) 1999 1998 (c) 1999 1998 (d)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (11,508) $ 235 $ (2,207) $ (1,846) $ 4,414 $ (1)
Net realized gains (losses)........... 8,595 (19,298) (7,690) (7,219) 1,922 --
Net unrealized gains (losses)......... 123,471 41,964 107,358 28,952 26,854 54
------------ ------------ ------------ ------------ ------------ ------
Increase (Decrease) in net assets
from operations.................. $ 120,558 $ 22,901 $ 97,461 $ 19,887 $ 33,190 $ 53
------------ ------------ ------------ ------------ ------------ ------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $ 763,389 $ 772,014 $ 371,632 $ 507,596 $ 669,170 $ 1,000
Net transfers between Sub-Accounts
and Fixed Account.................. 1,051,737 114,451 749,356 197,133 437,351 --
Withdrawals, surrenders,
annuitizations and contract
charges............................ (64,162) (3,783) (31,766) (8,885) (2,598) --
------------ ------------ ------------ ------------ ------------ ------
Net accumulation activity......... $1,750,964 $ 882,682 $1,089,222 $ 695,844 $1,103,923 $ 1,000
------------ ------------ ------------ ------------ ------------ ------
Annuitization activity:
Annuitizations...................... $ 38,341 $ -- $ 15,827 $ -- $ -- $ --
Annuity payments.................... (214) -- (238) -- -- --
Adjustments to annuity reserve...... (1,057) -- (1,094) -- -- --
------------ ------------ ------------ ------------ ------------ ------
Net annuitization activity........ $ 37,070 $ -- $ 14,495 $ -- $ -- $ --
------------ ------------ ------------ ------------ ------------ ------
Increase (Decrease) in net assets from
participant transactions............. $1,788,034 $ 882,682 $1,103,717 $ 695,844 $1,103,923 $ 1,000
------------ ------------ ------------ ------------ ------------ ------
Increase (Decrease) in net assets... $1,908,592 $ 905,583 $1,201,178 $ 715,731 $1,137,113 $ 1,053
NET ASSETS:
Beginning of period................... 905,583 -- 715,731 -- 1,053 --
------------ ------------ ------------ ------------ ------------ ------
End of period......................... $2,814,175 $ 905,583 $1,916,909 $ 715,731 $1,138,166 $ 1,053
------------ ------------ ------------ ------------ ------------ ------
------------ ------------ ------------ ------------ ------------ ------
</TABLE>
(b) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(c) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
(d) For the period December 15, 1998 (commencement of operations) through
December 31, 1998.
See notes to financial statements
21
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
SB1 SB2 SB3
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Period Period Period
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 (b) 1999 1998 (b) 1999 1998 (a)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (1,888) $ 3,553 $ (3,316) $ (252) $ (29,585) $ 121,348
Net realized gains (losses)........... 2,482 (1,757) 2,497 (857) (14,245) 9,630
Net unrealized gains (losses)......... 33,337 23,271 73,253 19,454 (18,743) (66,852)
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 33,931 $ 25,067 $ 72,434 $ 18,345 $ (62,573) $ 64,126
------------ ------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $ 20,844 $ 200,980 $ 92,996 $ 263,704 $ 160,066 $2,139,351
Net transfers between Sub-Accounts
and Fixed Account.................. 57,841 8,030 139,136 49,888 2,611,618 722,156
Withdrawals, surrenders,
annuitizations and contract
charges............................ (27,495) (2,808) (2,381) (1,853) (109,714) (13,933)
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation activity......... $ 51,190 $ 206,202 $ 229,751 $ 311,739 $2,661,970 $2,847,574
------------ ------------ ------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ -- $ -- $ -- $ -- $ 30,708 $ --
Annuity payments.................... -- -- -- -- (434) --
Adjustments to annuity reserve...... -- -- -- -- (1,150) --
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ -- $ -- $ -- $ -- $ 29,124 $ --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $ 51,190 $ 206,202 $ 229,751 $ 311,739 $2,691,094 $2,847,574
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $ 85,121 $ 231,269 $ 302,185 $ 330,084 $2,628,521 $2,911,700
NET ASSETS:
Beginning of period................... 231,269 -- 330,084 -- 2,911,700 --
------------ ------------ ------------ ------------ ------------ ------------
End of period......................... $ 316,390 $ 231,269 $ 632,269 $ 330,084 $5,540,221 $2,911,700
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(a) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
See notes to financial statements
22
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
SB4 SCA1 SCA2
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Period Period Period
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 (b) 1999 1998 (c) 1999 1998 (c)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (28,550) $ 39,286 $ 11,334 $ 3 $ 19,038 $ 13
Net realized gains (losses)........... 12,320 (1,146) -- -- (1,664) (1)
Net unrealized gains (losses)......... 190,074 64,469 -- -- (31,228) 21
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................. $ 173,844 $ 102,609 $ 11,334 $ 3 $ (13,854) $ 33
------------ ------------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received............ $ 24,145 $1,946,618 $1,968,268 $ 2,000 $1,130,931 $ 18,000
Net transfers between Sub-Accounts and
Fixed Account........................ 2,271,945 945,488 254,228 -- 1,472,823 --
Withdrawals, surrenders,
annuitizations and contract
charges.............................. (159,596) (11,783) (34,339) -- (53,652) --
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation activity......... $2,136,494 $2,880,323 $2,188,157 $ 2,000 $2,550,102 $ 18,000
------------ ------------ ------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ -- $ -- $ -- $ -- $ 44,724 $ --
Annuity payments.................... -- -- -- -- (62) --
Adjustments to annuity reserve...... -- -- -- -- (212) --
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ -- $ -- $ -- $ -- $ 44,450 $ --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $2,136,494 $2,880,323 $2,188,157 $ 2,000 $2,594,552 $ 18,000
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $2,310,338 $2,982,932 $2,199,491 $ 2,003 $2,580,698 $ 18,033
NET ASSETS:
Beginning of period................... 2,982,932 -- 2,003 -- 18,033 --
------------ ------------ ------------ ------------ ------------ ------------
End of period......................... $5,293,270 $2,982,932 $2,201,494 $ 2,003 $2,598,731 $ 18,033
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
(c) For the period December 15, 1998 (commencement of operations) through
December 31, 1998.
See notes to financial statements
23
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
SCA3 WP1 WP2
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Period Period Period
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 (c) 1999 1998 (a) 1999 1998 (b)
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (1,573) $ (1) $ (466) $ (679) $ (1,348) $ (1,361)
Net realized gains (losses)........... 969 -- 28,446 (4,817) (2,510) (33,030)
Net unrealized gains (losses)......... 22,013 97 80,914 (3,352) 29,306 (1,858)
------------ ------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................... $ 21,409 $ 96 $ 108,894 $ (8,848) $ 25,448 $ (36,249)
------------ ------ ------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received............ $ 264,892 $ 7,000 $ 87,432 $ 133,941 $ 137,403 $ 169,921
Net transfers between Sub-Accounts and
Fixed Account........................ 229,681 -- 66,070 40,476 143,498 32,859
Withdrawals, surrenders,
annuitizations and contract charges.. (8,444) -- (16,354) (742) (1,682) (879)
------------ ------ ------------ ------------ ------------ ------------
Net accumulation activity......... $ 486,129 $ 7,000 $ 137,148 $ 173,675 $ 279,219 $ 201,901
------------ ------ ------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ 3,427 $ -- $ 13,441 $ -- $ -- $ --
Annuity payments.................... -- -- (226) -- -- --
Adjustments to annuity reserve...... (1) -- (641) -- -- --
------------ ------ ------------ ------------ ------------ ------------
Net annuitization activity........ $ 3,426 $ -- $ 12,574 $ -- $ -- $ --
------------ ------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets from
participant transactions............. $ 489,555 $ 7,000 $ 149,722 $ 173,675 $ 279,219 $ 201,901
------------ ------ ------------ ------------ ------------ ------------
Increase (Decrease) in net assets... $ 510,964 $ 7,096 $ 258,616 $ 164,827 $ 304,667 $ 165,652
NET ASSETS:
Beginning of period................... 7,096 -- 164,827 -- 165,652 --
------------ ------ ------------ ------------ ------------ ------------
End of period......................... $ 518,060 $ 7,096 $ 423,443 $ 164,827 $ 470,319 $ 165,652
------------ ------ ------------ ------------ ------------ ------------
------------ ------ ------------ ------------ ------------ ------------
</TABLE>
(a) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
(c) For the period December 15, 1998 (commencement of operations) through
December 31, 1998.
See notes to financial statements
24
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
WP3 WP4
Sub-Account Sub-Account
--------------------------- ---------------------------
Period Period
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1999 1998 (b) 1999 1998 (b)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (1,145) $ (535) $ (3,492) $ (2,271)
Net realized gains (losses)........... (1,840) (239) 7,153 (26,102)
Net unrealized gains (losses)......... 27,277 7,438 48,009 29,531
------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from operations.................... $ 24,292 $ 6,664 $ 51,670 $ 1,158
------------ ------------ ------------ ------------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Purchase payments received.......... $ 56,373 $ 113,755 $ 157,993 $ 378,201
Net transfers between Sub-Accounts
and Fixed Account.................. 37,093 17,358 156,224 (5,371)
Withdrawals, surrenders,
annuitizations and contract
charges............................ (15,587) (830) (30,057) (2,707)
------------ ------------ ------------ ------------
Net accumulation activity......... $ 77,879 $ 130,283 $ 284,160 $ 370,123
------------ ------------ ------------ ------------
Annuitization activity:
Annuitizations...................... $ 14,959 $ -- $ -- $ --
Annuity payments.................... (226) -- -- --
Adjustments to annuity reserve...... (1,718) -- -- --
------------ ------------ ------------ ------------
Net annuitization activity........ $ 13,015 $ -- $ -- $ --
------------ ------------ ------------ ------------
Increase (Decrease) in net assets
from participant transactions...... $ 90,894 $ 130,283 $ 284,160 $ 370,123
------------ ------------ ------------ ------------
Increase (Decrease) in net
assets........................... $ 115,186 $ 136,947 $ 335,830 $ 371,281
NET ASSETS:
Beginning of period................... 136,947 -- 371,281 --
------------ ------------ ------------ ------------
End of period......................... $ 252,133 $ 136,947 $ 707,111 $ 371,281
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
See notes to financial statements
25
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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") is a
separate account of Sun Life Assurance Company of Canada (U.S.), (the
"Sponsor"), and was established on July 13, 1989 as a funding vehicle for the
variable portion of Futurity contracts, Futurity II contracts and Futurity Focus
contracts (collectively, the "Contracts") and certain other group and individual
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 is invested in shares of a single corresponding investment portfolio
of certain registered open-end mutual funds. With respect to the Futurity
contracts, the Funds are: AIM Variable Insurance Fund, Inc., The Alger American
Fund, Goldman Sachs Variable Insurance Trust, J.P. Morgan Series Trust II, Lord
Abbett Series Fund, Inc., MFS/ Sun Life Series Trust, OCC Accumulation Trust,
Salomon Brothers Variable Series Funds Inc. and Warburg Pincus Trust. With
respect to the Futurity II contracts, the Funds are: AIM Variable Insurance
Fund, Inc., The Alger American Fund, Goldman Sachs Variable Insurance Trust,
J.P. Morgan Series Trust II, Lord Abbett Series Fund, Inc., MFS/Sun Life Series
Trust, OCC Accumulation Trust, Sun Capital Advisers Trust and Warburg Pincus
Trust. With respect to the Futurity Focus contracts, the Funds are: AIM Variable
Insurance Fund, Inc., the Alger American Fund, Goldman Sachs Variable Insurance
Trust, J.P. Morgan Series Trust II, Lord Abbett Series Fund, Inc., MFS/Sun Life
Series Trust, OCC Accumulation Trust, Sun Capital Advisers Trust and Warburg
Pincus Trust (collectively, the "Funds").
(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 Funds are recorded at their net asset value.
Realized gains and losses on sales of shares of the Funds are determined on the
identified cost basis. Dividend income and capital gain distributions received
by the Sub-Accounts are reinvested in additional Fund shares and are recognized
on the ex-dividend date.
Exchanges between Sub-Accounts requested by contract participants are recorded
in the new Sub-Account upon receipt of the redemption proceeds.
26
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS SUB-ACCOUNTS INCLUDED IN SUN LIFE OF
CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(2) SIGNIFICANT ACCOUNTING POLICIES -- continued
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.
(3) CONTRACT CHARGES
A mortality and expense risk charge based on the value of the Sub-Accounts
included in 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 Futurity and Futurity
II contracts and 1.00% for Futurity Focus contracts.
Each year on the account anniversary, an account administration fee ("Account
Fee") equal to the lesser of $30 in the case of Futurity contracts, $35 in the
case of Futurity II contracts and $50 in the case of Futurity Focus contracts or
2% of the participant's account value in Account Years one through five
(thereafter, the Account Fee 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. As
reimbursement for administrative expenses attributable to contracts which exceed
the revenues received from the Account Fees, 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.
The Sponsor does not deduct a sales charge from purchase payments. However, a
withdrawal charge (contingent deferred sales charge) of up to 6% of certain
amounts withdrawn, when applicable, may be deducted to cover certain expenses
relating to the sale of the Contracts, including commissions paid to sales
personnel, the costs of preparation of sales literature, and other promotional
costs and acquisition expenses.
(4) ANNUITY RESERVES
Annuity reserves are calculated using the 1983 Individual Annuitant Mortality
Table and an assumed interest rate of 3% per year. Required adjustments to the
reserves are accomplished by transfers to or from the Sponsor.
27
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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
------------------------------ ---------------------------- --------------------------
Period Year Ended Period Year Ended
Ended June Year Ended Period Ended December 31, Ended June December 31,
30, 1999 December 31, 1998 June 30, 1999 1998 30, 1999 1998
----------- ----------------- ------------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
FUTURITY CONTRACTS:
AIM1 (a)...................... 141,292 -- 18,630 120,297 30,175 21,989
AIM2 (a)...................... 204,502 -- 26,247 188,055 138,463 18,286
AIM3 (b)...................... 332,662 -- 31,650 211,522 269,331 126,191
AIM4 (a)...................... 216,812 -- 17,906 175,562 192,101 42,064
AL1 (b)....................... 285,990 -- 71,170 220,381 318,309 66,702
AL2 (b)....................... 194,995 -- 35,996 166,134 167,790 33,387
AL3 (b)....................... 77,472 -- 9,714 46,464 57,346 31,855
GS1 (c)....................... 210,952 -- 32,463 174,066 107,692 37,773
GS2 (a)....................... 31,476 -- 515 28,820 27,979 2,730
GS3 (a)....................... 282,488 -- 23,344 245,810 170,826 41,721
GS4 (a)....................... 199,770 -- 6,507 146,654 61,212 54,644
GS5 (d)....................... 30,394 -- 2,568 22,922 17,293 7,479
JP1 (b)....................... 293,787 -- 68,550 153,409 125,799 143,890
JP2 (b)....................... 52,419 -- 7,688 43,568 32,613 9,107
JP3 (b)....................... 22,655 -- 7,293 14,226 1,610 8,529
LA1 (b)....................... 333,805 -- 33,523 295,576 186,301 40,527
CAS (e)....................... 403,733 -- 27,937 182,671 71,114 225,749
EGS (a)....................... 397,132 -- 42,821 286,458 133,790 114,747
GSS (a)....................... 150,350 -- 30,391 124,697 291,341 30,755
HYS (e)....................... 217,924 -- 22,912 136,139 186,318 82,554
MMS (a)....................... 371,404 -- 18,435 520,396 59,787 (145,427)
UTS (b)....................... 278,221 -- 34,726 168,365 289,378 110,939
OP1 (a)....................... 363,748 -- 23,828 249,514 252,178 116,381
OP2 (a)....................... 93,160 -- 17,640 80,719 59,219 12,844
OP3 (b)....................... 86,567 -- 9,948 62,966 78,882 24,744
SB1 (b)....................... 21,329 -- 1,933 20,954 5,204 660
SB2 (b)....................... 32,282 -- 9,029 27,151 12,889 5,324
SB3 (a)....................... 277,473 -- 15,369 208,817 250,757 69,996
SB4 (b)....................... 293,921 -- 3,699 199,267 220,779 95,844
WP1 (a)....................... 22,480 -- 8,977 17,004 5,222 5,576
WP2 (b)....................... 18,253 -- 5,436 17,656 13,870 697
WP3 (b)....................... 14,715 -- 4,185 12,602 2,521 2,213
WP4 (b)....................... 41,843 -- 2,640 42,727 13,593 (84)
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Period
------------------------------ --------------------------
Year Ended Period Year Ended
Period Ended December 31, Ended June December 31,
June 30, 1999 1998 30, 1999 1998
------------- --------------- ----------- -------------
<S> <C> <C> <C> <C>
FUTURITY CONTRACTS:
AIM1 (a)...................... (4,094) (994) 186,003 141,292
AIM2 (a)...................... (4,155) (1,839) 365,057 204,502
AIM3 (b)...................... (15,185) (5,051) 618,458 332,662
AIM4 (a)...................... (12,884) (814) 413,935 216,812
AL1 (b)....................... (25,205) (1,093) 650,264 285,990
AL2 (b)....................... (33,594) (4,526) 365,187 194,995
AL3 (b)....................... (3,624) (847) 140,908 77,472
GS1 (c)....................... (6,927) (887) 344,180 210,952
GS2 (a)....................... (2,592) (74) 57,378 31,476
GS3 (a)....................... (9,837) (5,043) 466,821 282,488
GS4 (a)....................... (11,158) (1,528) 256,331 199,770
GS5 (d)....................... (1,904) (7) 48,351 30,394
JP1 (b)....................... (8,318) (3,512) 479,818 293,787
JP2 (b)....................... (4,366) (256) 88,354 52,419
JP3 (b)....................... (76) (100) 31,482 22,655
LA1 (b)....................... (16,680) (2,298) 536,949 333,805
CAS (e)....................... (15,082) (4,687) 487,702 403,733
EGS (a)....................... (17,272) (4,073) 556,471 397,132
GSS (a)....................... (6,010) (5,102) 466,072 150,350
HYS (e)....................... (8,400) (769) 418,754 217,924
MMS (a)....................... (35,218) (3,565) 414,408 371,404
UTS (b)....................... (17,823) (1,083) 584,502 278,221
OP1 (a)....................... (16,090) (2,147) 623,664 363,748
OP2 (a)....................... (3,810) (403) 166,209 93,160
OP3 (b)....................... (3,491) (1,143) 171,906 86,567
SB1 (b)....................... (2,517) (285) 25,949 21,329
SB2 (b)....................... (222) (193) 53,978 32,282
SB3 (a)....................... (10,579) (1,340) 533,020 277,473
SB4 (b)....................... (16,853) (1,190) 501,546 293,921
WP1 (a)....................... (1,901) (100) 34,778 22,480
WP2 (b)....................... (186) (100) 37,373 18,253
WP3 (b)....................... (1,764) (100) 19,657 14,715
WP4 (b)....................... (2,761) (800) 55,315 41,843
</TABLE>
(a) For the period February 20, 1998 (commencement of operations) through
December 31, 1998.
(b) For the period March 27, 1998 (commencement of operations) through December
31, 1998.
(c) For the period March 12, 1998 (commencement of operations) through December
31, 1998.
(d) For the period March 17, 1998 (commencement of operations) through December
31, 1998.
(e) For the period February 26, 1998 (commencement of operations) through
December 31, 1998.
28
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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
---------------------------------- ---------------------------- ------------------------------
Period Year Ended Period
Period Ended Year Ended Ended June December 31, Ended June Year Ended
June 30, 1999 December 31, 1998 30, 1999 1998 30, 1999 December 31, 1998
--------------- ----------------- ----------- --------------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
FUTURITY II CONTRACTS:
AIM1 (a)...................... 100 -- 62,689 100 24,875 --
AIM2 (a)...................... 1,049 -- 271,288 1,049 94,217 --
AIM3 (a)...................... 1,704 -- 268,110 1,704 104,571 --
AIM4 (b)...................... 2,553 -- 163,301 2,553 140,681 --
AL1 (a)....................... 2,044 -- 348,466 2,044 171,692 --
AL2 (b)....................... 1,785 -- 161,991 1,785 77,432 --
AL3 (a)....................... 100 -- 55,869 100 13,388 --
GS1 (c)....................... 786 -- 162,783 786 60,907 --
GS2 (a)....................... 100 -- 5,247 100 15,114 --
GS3 (b)....................... 2,341 -- 171,050 2,341 78,462 --
GS4 (a)....................... 100 -- 42,305 100 35,766 --
GS5 (c)....................... 578 -- 28,309 578 12,251 --
JP1 (a)....................... 474 -- 187,716 474 73,741 --
JP2 (a)....................... 100 -- 29,155 100 6,128 --
JP3 (a)....................... 100 -- 13,892 100 9,527 --
LA1 (b)....................... 1,763 -- 186,554 1,763 98,392 --
CAS (a)....................... 2,367 -- 155,163 2,367 82,478 --
CGS (d)....................... -- -- 27,893 -- 5,607 --
EGS (c)....................... 3,662 -- 231,789 3,662 70,070 --
GSS (b)....................... 1,027 -- 173,120 1,027 112,315 --
HYS (b)....................... 729 -- 109,217 729 64,295 --
MIS (d)....................... -- -- 34,631 -- 2,273 --
NWD (d)....................... -- -- 9,049 -- 331 --
TRS (d)....................... -- -- 21,705 -- 506 --
UTS (c)....................... 821 -- 121,937 821 62,636 --
OP1 (b)....................... 1,517 -- 140,233 1,517 75,122 --
OP2 (a)....................... 150 -- 54,518 150 45,177 --
OP3 (a)....................... 100 -- 30,163 100 11,468 --
OP4 (a)....................... 100 -- 61,746 100 39,309 --
SCA1 (a)...................... 200 -- 181,846 200 25,458 --
SCA2 (a)...................... 1,806 -- 116,658 1,806 148,363 --
SCA3 (a)...................... 705 -- 30,311 705 23,012 --
WP1 (a)....................... 100 -- 1,839 100 2,888 --
WP2 (a)....................... 100 -- 8,342 100 1,394 --
WP3 (a)....................... 100 -- 1,310 100 1,146 --
WP4 (a)....................... 100 -- 12,670 100 3,820 --
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Period
-------------------------------- ----------------------------
Period Year Ended
Period Ended Year Ended Ended June December 31,
June 30, 1999 December 31, 1998 30, 1999 1998
------------- ----------------- ----------- ---------------
<S> <C> <C> <C> <C>
FUTURITY II CONTRACTS:
AIM1 (a)...................... (914) -- 86,750 100
AIM2 (a)...................... (9,430) -- 357,124 1,049
AIM3 (a)...................... (2,289) -- 372,096 1,704
AIM4 (b)...................... (14,736) -- 291,799 2,553
AL1 (a)....................... (3,973) -- 518,229 2,044
AL2 (b)....................... (9,556) -- 231,652 1,785
AL3 (a)....................... (311) -- 69,046 100
GS1 (c)....................... (7,042) -- 217,434 786
GS2 (a)....................... (771) -- 19,690 100
GS3 (b)....................... (14,356) -- 237,497 2,341
GS4 (a)....................... (400) -- 77,771 100
GS5 (c)....................... (761) -- 40,377 578
JP1 (a)....................... (1,577) -- 260,354 474
JP2 (a)....................... (1,189) -- 34,194 100
JP3 (a)....................... (62) -- 23,457 100
LA1 (b)....................... (3,475) -- 283,234 1,763
CAS (a)....................... (3,314) -- 236,694 2,367
CGS (d)....................... (21) -- 33,479 --
EGS (c)....................... (12,243) -- 293,278 3,662
GSS (b)....................... (3,376) -- 283,086 1,027
HYS (b)....................... (5,242) -- 168,999 729
MIS (d)....................... (21) -- 36,883 --
NWD (d)....................... (15) -- 9,365 --
TRS (d)....................... (101) -- 22,110 --
UTS (c)....................... (4,833) -- 180,561 821
OP1 (b)....................... (1,682) -- 215,190 1,517
OP2 (a)....................... (2,664) -- 97,181 150
OP3 (a)....................... (459) -- 41,272 100
OP4 (a)....................... (243) -- 100,912 100
SCA1 (a)...................... (1,412) -- 206,092 200
SCA2 (a)...................... (14,317) -- 252,510 1,806
SCA3 (a)...................... (5,204) -- 48,824 705
WP1 (a)....................... (243) -- 4,584 100
WP2 (a)....................... -- -- 9,836 100
WP3 (a)....................... -- -- 2,556 100
WP4 (a)....................... (670) -- 15,920 100
</TABLE>
(a) For the period December 15, 1998 (commencement of operations) through
December 31, 1998.
(b) For the period December 17, 1998 (commencement of operations) through
December 31, 1998.
(c) For the period December 29, 1998 (commencement of operations) through
December 31, 1998.
(d) For the period May 17, 1999 (commencement of operations) through June 30,
1999.
29
<PAGE>
FUTURITY, FUTURITY II AND FUTURITY FOCUS 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 Units
Between Sub-Accounts Withdrawn,
and Surrendered, Units
Units Outstanding Fixed Accumulation and Outstanding
Beginning of Period Units Purchased Account Annuitized End of Period
------------------- --------------- --------------------- --------------- ---------------
Period Ended Period Ended Period Ended Period Ended Period Ended
June 30, 1999 June 30, 1999 June 30, 1999 June 30, 1999 June 30, 1999
------------------- --------------- --------------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
FUTURITY FOCUS CONTRACTS:
AIM1 (a)...................... -- 2,392 (6) -- 2,386
AIM2 (a)...................... -- 2,559 151 -- 2,710
AIM3 (a)...................... -- 17,261 496 -- 17,757
AIM4 (a)...................... -- 806 218 -- 1,024
AL1 (a)....................... -- 17,113 513 (1,337) 16,289
AL2 (a)....................... -- 14,681 (178) (1,333) 13,170
AL3 (a)....................... -- 2,894 -- -- 2,894
GS1 (a)....................... -- 100 -- -- 100
GS2 (a)....................... -- 100 -- -- 100
GS3 (a)....................... -- 3,265 202 -- 3,467
GS4 (a)....................... -- 1,730 -- -- 1,730
GS5 (a)....................... -- 1,108 345 -- 1,453
JP1 (a)....................... -- 8,537 146 -- 8,683
JP2 (a)....................... -- 520 -- -- 520
JP3 (a)....................... -- 340 89 -- 429
LA1 (b)....................... -- 13,083 158 -- 13,241
CAS (a)....................... -- 8,907 512 -- 9,419
CGS (b)....................... -- 1,585 99 -- 1,684
EGS (a)....................... -- 10,228 174 (123) 10,279
GSS (a)....................... -- 11,855 (704) -- 11,151
HYS (a)....................... -- 10,352 (1,525) (3,481) 5,346
MIS (b)....................... -- -- 110 -- 110
NWD (b)....................... -- 1,952 115 -- 2,067
TRS (b)....................... -- -- 103 -- 103
UTS (a)....................... -- 8,609 119 -- 8,728
OP1 (a)....................... -- 3,142 (94) -- 3,048
OP2 (a)....................... -- 2,360 3 -- 2,363
OP3 (a)....................... -- 100 -- -- 100
OP4 (a)....................... -- 476 142 -- 618
SCA1 (a)...................... -- 13,032 (349) (1,988) 10,695
SCA2 (a)...................... -- 6,524 115 -- 6,639
SCA3 (a)...................... -- 393 (1) (109) 283
WP1 (a)....................... -- 100 -- -- 100
WP2 (a)....................... -- 100 123 -- 223
WP3 (a)....................... -- 100 -- -- 100
WP4 (a)....................... -- 100 -- -- 100
</TABLE>
(a) For the period May 15, 1999 (commencement of operations) through June 30,
1999.
(b) For the period May 17, 1999 (commencement of operations) through June 30,
1999.
30
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Participants in Futurity, Futurity II and Futurity Focus
and the Board of Directors of Sun Life Assurance Company of Canada (U.S.):
We have audited the accompanying statement of condition of AIM V.I. Capital
Appreciation Sub-Account, AIM V.I. Growth Sub-Account, AIM V.I. Growth and
Income Sub-Account, AIM V.I. International Equity Sub-Account, The Alger
American Growth Sub-Account, The Alger American Income and Growth Sub-Account,
The Alger American Small Capitalization Sub-Account, Goldman Sachs CORE Large
Cap Growth Sub-Account, Goldman Sachs CORE Small Cap Equity Sub-Account, Goldman
Sachs CORE U.S. Equity Sub-Account, Goldman Sachs Growth and Income Sub-Account,
Goldman Sachs International Equity Sub-Account, J.P. Morgan Equity Sub-Account,
J.P. Morgan International Opportunities Sub-Account, J.P. Morgan Small Company
Sub-Account, Lord Abbett Growth and Income Sub-Account, MFS/Sun Life Capital
Appreciation Sub-Account, MFS/Sun Life Massachusetts Investors Trust
Sub-Account, MFS/Sun Life Emerging Growth Sub-Account, MFS/Sun Life Government
Securities Sub-Account, MFS/Sun Life High Yield Sub-Account, MFS/Sun Life
Massachusetts Investors Growth Stock Sub-Account, MFS/Sun Life Money Market
Sub-Account, MFS/Sun Life New Discovery Sub-Account, MFS/Sun Life Total Return
Sub-Account, MFS/Sun Life Utilities Sub-Account, OCC Equity Sub-Account, OCC Mid
Cap Sub-Account, OCC Small Cap Sub-Account, OCC Managed Sub-Account, Salomon
Brothers Variable Capital Sub-Account, Salomon Brothers Variable Investors
Sub-Account, Salomon Brothers Variable Strategic Bond Sub-Account, Salomon
Brothers Variable Total Return Sub-Account, Sun Capital Money Market
Sub-Account, Sun Capital Investment Grade Bond Sub-Account, Sun Capital Real
Estate Sub-Account, Warburg Pincus Emerging Markets Sub-Account, Warburg Pincus
International Equity Sub-Account, Warburg Pincus Post-Venture Capital
Sub-Account and Warburg Pincus Small Company Growth 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 six month period then ended and the
statements of changes in net assets for the six month period ended June 30, 1999
and the year ended December 31, 1998. These financial statements are the
responsibility of management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities held at June 30, 1999 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Sub-Accounts as of June 30, 1999, the
results of their operations and the changes in their net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 6, 1999
<PAGE>
Semi-Annual Report
June 30, 1999
[LOGO]
A professionally managed annuity issued by Sun Life Assurance Company of Canada
(U.S.)
<TABLE>
<S> <C>
DIRECTORS AND OFFICERS OF SUN LIFE SUN LIFE ASSURANCE
ASSURANCE COMPANY OF CANADA (U.S.) COMPANY OF CANADA (U.S.)
- --------------------------------------------- ---------------------------------------
DONALD A. STEWART, Chairman and Director ANNUITY SERVICE MAILING ADDRESS
C. JAMES PRIEUR, President and Director Sun Life of Canada (U.S.)
S. CAESAR RABOY, Director P.O. Box 9133
RICHARD B. BAILEY, Director Boston, MA 02103-9986
M. COLYER CRUM, Director GENERAL DISTRIBUTOR
DAVID D. HORN, Director Clarendon Insurance Agency, Inc.
JOHN S. LANE, Director One Sun Life Executive Park
ANGUS A. MacNAUGHTON, Director Wellesley Hills, MA 02481
JOHN D. McNEIL, Director LEGAL COUNSEL
PETER F. DEMUTH, Vice President, Covington & Burling
Chief Counsel and Assistant Secretary 1201 Pennsylvania Avenue, N.W.
JAMES A. McNULTY, III, Vice President P.O. Box 7566
and Assistant General Manager Washington, D.C. 20044-7566
JAMES M. A. ANDERSON, Vice President, AUDITORS
Investments Deloitte & Touche LLP
ROBERT P. VROLYK, Vice President, Finance 200 Berkeley Street
and Actuary Boston, MA 02116
L. BROCK THOMSON, Vice President This report is prepared for the general information
and Treasurer of contract owners and participants. It is
ELLEN B. KING, Assistant Counsel authorized for distribution to prospective
and Secretary purchasers only when preceded or accompanied by an
effective prospectus.
</TABLE>
ACCOUNT INFORMATION : For account information, please call toll-free:
1-888-717-4387 anytime from a touch-tone telephone. To speak to a
customer service representative, please call toll-free: 1-888-786-2435
on any business day from 8 a.m. to 6 p.m. Eastern time.
FUTUS-8/99 4M
