<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY
These performance results do not reflect any applicable surrender charges. Past
performance is no guarantee of future results.
<TABLE>
<CAPTION>
Unit Value
------------------------------------- Percent Change
December 31, 1997 December 31, 1998 in Unit Value
----------------- ----------------- --------------
<S> <C> <C> <C>
MFS REGATTA CONTRACTS:
Capital Appreciation Series - Level
1.................................... $29.9999 $ 38.0799 26.93%
Capital Appreciation Series - Level
2.................................... 12.0916 15.3711 27.12
Government Securities Series - Level
1.................................... 16.6923 17.8992 7.23
Government Securities Series - Level
2.................................... 10.7020 11.4928 7.39
High Yield Series - Level 1........... 22.0555 21.8836 (0.78)
High Yield Series - Level 2........... 11.1721 11.1015 (0.63)
Managed Sectors Series - Level 1...... 27.2960 30.2227 10.72
Managed Sectors Series - Level 2...... 12.2808 13.6177 10.89
Money Market Series - Level 1......... 13.1780 13.6495 3.58
Money Market Series - Level 2......... 10.4025 10.7906 3.73
Total Return Series - Level 1......... 24.1056 26.5642 10.20
Total Return Series - Level 2......... 12.0683 13.3189 10.36
World Governments Series - Level 1.... 16.4146 18.6916 13.87
World Governments Series - Level 2.... 9.8243 11.2037 14.04
MFS REGATTA GOLD CONTRACTS:
Bond Series........................... $10.0000* $ 10.5921 5.92%
Capital Appreciation Series........... 27.4057 34.7871 26.93
Capital Opportunities Series.......... 13.7450 17.2085 25.20
Conservative Growth Series............ 25.9656 31.7109 22.13
Emerging Growth Series................ 17.4544 23.0408 32.01
Equity Income Series.................. 10.0000* 10.4065 4.07
MFS/Foreign & Colonial Emerging
Markets Equity Series................ 10.8010 7.4615 (30.92)
International Growth Series........... 9.4566 9.5047 0.51
International Growth and Income
Series............................... 10.9674 13.1538 19.94
Government Securities Series.......... 14.0763 15.0941 7.23
High Yield Series..................... 18.1622 18.0207 (0.78)
Managed Sectors Series................ 22.9770 25.4406 10.72
Massachusetts Investors Growth Stock
Series............................... 10.0000* 11.9635 19.64
Money Market Series................... 11.8058 12.2282 3.58
New Discovery Series.................. 10.0000* 10.5258 5.26
Research Series....................... 19.4490 23.7119 21.92
Research Growth & Income Series....... 10.9235 13.1605 20.48
Research International Series......... 10.0000* 9.3330 (6.67)
Strategic Income Series............... 10.0000* 9.9530 (0.47)
Total Return Series................... 20.0793 22.1273 10.20
Utilities Series...................... 19.0140 22.0489 15.96
World Asset Allocation Series......... 15.0565 15.8203 5.07
World Governments Series.............. 13.3854 15.2422 13.87
World Growth Series................... 15.6398 17.6676 12.97
World Total Return Series............. 14.7153 17.1741 16.71
</TABLE>
*Reflects unit value on date of commencement of operations.
1
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY -- continued
<TABLE>
<CAPTION>
Unit Value
------------------------------------- Percent Change
December 31, 1997 December 31, 1998 in Unit Value
----------------- ----------------- --------------
<S> <C> <C> <C>
MFS REGATTA CLASSIC CONTRACTS:
Bond Series........................... $10.0000* $ 10.4200 4.20%
Capital Appreciation Series........... 11.9926 15.2806 27.42
Capital Opportunities Series.......... 12.7132 15.9773 25.67
Conservative Growth Series............ 12.8247 15.7220 22.59
Emerging Growth Series................ 11.5023 15.2416 32.51
Equity Income Series.................. 10.0000* 10.6318 6.32
MFS/Foreign & Colonial Emerging
Markets Equity Series................ 11.3377 7.8620 (30.66)
International Growth Series........... 9.7271 9.8139 0.89
International Growth and Income
Series............................... 10.5716 12.7274 20.39
Government Securities Series.......... 10.6850 11.5012 7.64
High Yield Series..................... 11.2665 11.2212 (0.40)
Managed Sectors Series................ 11.9091 13.2363 11.14
Massachusetts Investors Growth Stock
Series............................... 10.0000* 11.9830 19.83
Money Market Series................... 10.3869 10.7995 3.97
New Discovery Series.................. 10.0000* 10.5430 5.43
Research Series....................... 11.7136 14.3354 22.38
Research Growth & Income Series....... 10.7281 12.9744 20.94
Research International Series......... 10.0000* 11.0101 10.10
Strategic Income Series............... 10.0000* 9.8850 (1.15)
Total Return Series................... 11.9123 13.1773 10.62
Utilities Series...................... 12.7649 14.8587 16.40
World Asset Allocation Series......... 10.9812 11.5822 5.47
World Governments Series.............. 10.0247 11.4588 14.31
World Growth Series................... 11.3725 12.8959 13.40
World Total Return Series............. 11.1546 13.0681 17.15
</TABLE>
*Reflects unit value on date of commencement of operations.
2
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY -- continued
<TABLE>
<CAPTION>
Unit Value
--------------------------------------- Percent Change
Beginning of Period December 31, 1998 in Unit Value
------------------- ----------------- --------------
<S> <C> <C> <C>
MFS REGATTA PLATINUM CONTRACTS:
Bond Series........................... $10.0000* $ 10.4201 4.20%
Capital Appreciation Series........... 10.0000* 11.3405 13.40
Capital Opportunities Series.......... 10.0000* 10.8048 8.05
Conservative Growth Series............ 10.0000* 10.7939 7.94
Emerging Growth Series................ 10.0000* 11.5819 15.82
Equity Income Series.................. 10.0000* 10.5234 5.23
MFS/Foreign & Colonial Emerging
Markets Equity Series................ 10.0000* 8.1616 (18.38)
International Growth Series........... 10.0000* 9.3254 (6.75)
International Growth and Income
Series............................... 10.0000* 10.3378 3.38
Government Securities Series.......... 10.0000* 10.4116 4.12
High Yield Series..................... 10.0000* 9.5030 (4.97)
Managed Sectors Series................ 10.0000* 10.5861 5.86
Massachusetts Investors Growth Stock
Series............................... 10.0000* 11.9094 19.09
Money Market Series................... 10.0000* 10.1878 1.88
New Discovery Series.................. 10.0000* 10.4124 4.12
Research Series....................... 10.0000* 11.0189 10.19
Research Growth & Income Series....... 10.0000* 10.3415 3.42
Research International Series......... 10.0000* 9.4845 (5.16)
Strategic Income Series............... 10.0000* 9.8713 (1.29)
Total Return Series................... 10.0000* 10.2907 2.91
Utilities Series...................... 10.0000* 10.9233 9.23
World Asset Allocation Series......... 10.0000* 9.7081 (2.92)
World Governments Series.............. 10.0000* 11.2639 12.64
World Growth Series................... 10.0000* 10.2820 2.82
World Total Return Series............. 10.0000* 10.4567 4.57
</TABLE>
*Reflects unit value on date of commencement of operations.
3
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- December 31, 1998
<TABLE>
<CAPTION>
Assets:
<S> <C> <C> <C>
Investment in MFS/Sun Life Series Trust: Shares Cost Value
----------- -------------- --------------
Bond Series ("BDS").............................................................. 1,833,052 $ 19,308,754 $ 19,594,756
Capital Appreciation Series ("CAS").............................................. 32,535,812 1,207,116,273 1,494,454,468
Capital Opportunities Series ("COS")............................................. 11,033,845 154,891,892 187,374,642
Conservative Growth Series ("CGS")............................................... 45,143,592 1,273,801,516 1,726,636,223
Emerging Growth Series ("EGS")................................................... 30,106,934 505,953,776 700,846,932
Equity Income Series ("EIS")..................................................... 808,548 7,896,401 8,491,757
MFS/Foreign & Colonial Emerging Markets Equity Series ("FCE").................... 2,266,785 22,335,481 16,977,985
International Growth Series ("FCI").............................................. 3,626,435 35,824,144 35,304,699
International Growth and Income Series ("FCG")................................... 5,453,761 65,412,844 71,908,458
Government Securities Series ("GSS")............................................. 29,861,826 385,880,145 399,987,008
High Yield Series ("HYS")........................................................ 31,251,222 294,351,362 286,371,075
Managed Sectors Series ("MSS")................................................... 11,831,026 317,435,697 334,165,044
Massachusetts Investors Growth Stock Series ("MIS").............................. 6,724,723 69,779,820 81,191,995
Money Market Series ("MMS")...................................................... 417,135,145 417,135,145 417,135,145
New Discovery Series ("NWD")..................................................... 1,250,089 11,775,479 13,279,492
Research Series ("RES").......................................................... 41,174,957 725,772,331 947,967,793
Research Growth & Income Series ("RGS").......................................... 2,708,382 32,789,497 36,276,888
Research International Series ("RSS")............................................ 373,636 3,392,628 3,519,310
Strategic Income Series ("SIS").................................................. 774,644 7,563,923 7,781,098
Total Return Series ("TRS")...................................................... 85,415,374 1,568,357,466 1,816,228,173
Utilities Series ("UTS")......................................................... 12,363,259 176,926,102 211,219,612
World Asset Allocation Series ("WAA")............................................ 8,540,141 119,915,782 123,362,461
World Governments Series ("WGS")................................................. 7,341,822 83,199,514 89,769,321
World Growth Series ("WGR")...................................................... 16,637,922 227,100,556 260,469,628
World Total Return Series ("WTR")................................................ 5,736,216 80,641,108 95,255,576
-------------- --------------
$7,814,557,636 $9,385,569,539
--------------
--------------
Receivable from Sponsor......................................................................................... 124,848
--------------
Net Assets................................................................................................ $9,385,694,387
--------------
--------------
</TABLE>
<TABLE>
<CAPTION>
Applicable to Owners of Reserve
Deferred Variable Annuity Contracts for
------------------------------------- Variable
NET ASSETS APPLICABLE TO CONTRACT OWNERS: Units Unit Value Value Annuities Total
---------- ---------- ------------ ---------- --------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA CONTRACTS:
CAS -- Level 1......................... 464,349 $38.0799 $ 17,690,821 $ 128,185 $ 17,819,006
CAS -- Level 2......................... 9,053,993 15.3711 139,037,017 502,016 139,539,033
GSS -- Level 1......................... 325,241 17.8992 5,834,948 85,153 5,920,101
GSS -- Level 2......................... 2,656,978 11.4928 30,519,539 186,149 30,705,688
HYS -- Level 1......................... 73,632 21.8836 1,617,626 4,912 1,622,538
HYS -- Level 2......................... 1,320,379 11.1015 14,660,653 65,418 14,726,071
MSS -- Level 1......................... 196,463 30.2227 5,814,583 64,763 5,879,346
MSS -- Level 2......................... 2,730,897 13.6177 37,269,491 76,615 37,346,106
MMS -- Level 1......................... 268,447 13.6495 3,851,232 27,783 3,879,015
MMS -- Level 2......................... 3,722,758 10.7906 39,934,531 3,596 39,938,127
TRS -- Level 1......................... 898,137 26.5642 23,875,313 222,411 24,097,724
TRS -- Level 2......................... 12,506,430 13.3189 166,507,969 1,042,925 167,550,894
WGS -- Level 1......................... 89,328 18.6916 1,681,850 39,205 1,721,055
WGS -- Level 2......................... 834,010 11.2037 9,329,126 36,551 9,365,677
------------ ---------- --------------
$497,624,699 $2,485,682 $ 500,110,381
------------ ---------- --------------
</TABLE>
See notes to financial statements
4
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- December 31, 1998 -- continued
<TABLE>
<CAPTION>
Applicable to Owners of Reserve
Deferred Variable Annuity Contracts for
NET ASSETS APPLICABLE TO CONTRACT OWNERS --------------------------------------- Variable
(CONTINUED): Units Unit Value Value Annuities Total
---------- ---------- -------------- ---------- --------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA GOLD CONTRACTS:
BDS.................................... 1,182,239 $10.5921 $ 12,523,169 $ 148,957 $ 12,672,126
CAS.................................... 37,500,481 34.7871 1,304,369,755 6,496,774 1,310,866,529
COS.................................... 10,262,282 17.2085 176,609,581 303,057 176,912,638
CGS.................................... 51,880,765 31.7109 1,645,157,266 5,065,107 1,650,222,373
EGS.................................... 28,900,957 23.0408 665,946,545 1,249,399 667,195,944
EIS.................................... 528,238 10.4065 5,496,893 -- 5,496,893
FCE.................................... 2,147,348 7.4615 16,021,601 19,295 16,040,896
FCI.................................... 3,290,043 9.5047 31,272,468 50,802 31,323,270
FCG.................................... 5,214,558 13.1538 68,597,649 89,079 68,686,728
GSS.................................... 23,218,234 15.0941 350,499,319 1,093,255 351,592,574
HYS.................................... 14,190,817 18.0207 255,739,789 889,807 256,629,596
MSS.................................... 11,245,144 25.4406 285,790,341 972,779 286,763,120
MIS.................................... 4,121,518 11.9635 49,306,625 88,325 49,394,950
MMS.................................... 29,387,086 12.2282 359,428,914 1,587,715 361,016,629
NWD.................................... 794,859 10.5258 8,366,403 37,385 8,403,788
RES.................................... 38,553,986 23.7119 913,668,029 2,442,962 916,110,991
RGS.................................... 2,408,676 13.1605 31,700,558 131,422 31,831,980
RSS.................................... 190,267 9.3330 1,776,592 -- 1,776,592
SIS.................................... 622,914 9.9530 6,199,328 -- 6,199,328
TRS.................................... 71,102,020 22.1273 1,573,134,778 4,410,143 1,577,544,921
UTS.................................... 9,023,102 22.0489 198,939,550 710,512 199,650,062
WAA.................................... 7,576,691 15.8203 119,890,942 617,113 120,508,055
WGS.................................... 5,048,219 15.2422 76,964,930 444,193 77,409,123
WGR.................................... 14,522,129 17.6676 256,577,775 663,609 257,241,384
WTR.................................... 5,354,633 17.1741 91,961,363 521,228 92,482,591
-------------- ---------- --------------
$8,505,940,163 $28,032,918 $8,533,973,081
-------------- ---------- --------------
</TABLE>
See notes to financial statements
5
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- December 31, 1998 -- continued
<TABLE>
<CAPTION>
Applicable to Owners of Reserve
Deferred Variable Annuity Contracts for
NET ASSETS APPLICABLE TO CONTRACT OWNERS --------------------------------------- Variable
(CONTINUED): Units Unit Value Value Annuities Total
---------- ---------- -------------- ---------- --------------
MFS REGATTA CLASSIC CONTRACTS:
<S> <C> <C> <C> <C> <C>
BDS.................................... 35,123 $10.4200 $ 365,971 $ -- $ 365,971
CAS.................................... 465,812 15.2806 7,116,057 -- 7,116,057
COS.................................... 277,518 15.9773 4,429,393 -- 4,429,393
CGS.................................... 1,213,193 15.7220 19,066,338 701 19,067,039
EGS.................................... 959,802 15.2416 14,625,520 -- 14,625,520
EIS.................................... 12,113 10.6318 128,778 -- 128,778
FCE.................................... 43,654 7.8620 343,375 -- 343,375
FCI.................................... 83,820 9.8139 822,725 -- 822,725
FCG.................................... 90,582 12.7274 1,152,339 -- 1,152,339
GSS.................................... 297,310 11.5012 3,424,501 -- 3,424,501
HYS.................................... 342,363 11.2212 3,840,819 -- 3,840,819
MSS.................................... 140,324 13.2363 1,856,704 -- 1,856,704
MIS.................................... 232,788 11.9830 2,790,662 -- 2,790,662
MMS.................................... 270,417 10.7995 2,919,832 -- 2,919,832
NWD.................................... 29,182 10.5430 307,881 -- 307,881
RES.................................... 872,289 14.3354 12,502,110 -- 12,502,110
RGS.................................... 33,882 12.9744 439,317 -- 439,317
RSS.................................... 2,234 11.0101 24,596 -- 24,596
SIS.................................... 2,577 9.8850 25,477 -- 25,477
TRS.................................... 1,731,292 13.1773 22,813,315 1,386 22,814,701
UTS.................................... 178,136 14.8587 2,640,990 -- 2,640,990
WAA.................................... 53,167 11.5822 616,156 -- 616,156
WGS.................................... 40,074 11.4588 459,164 -- 459,164
WGR.................................... 121,297 12.8959 1,563,449 -- 1,563,449
WTR.................................... 91,253 13.0681 1,192,112 723 1,192,835
-------------- ---------- --------------
$ 105,467,581 $ 2,810 $ 105,470,391
-------------- ---------- --------------
</TABLE>
See notes to financial statements
6
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- December 31, 1998 -- continued
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
NET ASSETS APPLICABLE TO CONTRACT OWNERS ------------------------------------- Variable
(CONTINUED): Units Unit Value Value Annuities Total
-------- ---------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA PLATINUM CONTRACTS:
BDS.................................... 628,000 $10.4201 $ 6,543,991 $ -- $ 6,543,991
CAS.................................... 1,683,164 11.3405 19,087,857 21,268 19,109,125
COS.................................... 556,955 10.8048 6,017,955 -- 6,017,955
CGS.................................... 5,331,018 10.7939 57,543,942 58,386 57,602,328
EGS.................................... 1,651,404 11.5819 19,126,029 -- 19,126,029
EIS.................................... 272,362 10.5234 2,866,086 -- 2,866,086
FCE.................................... 72,586 8.1616 592,467 -- 592,467
FCI.................................... 338,938 9.3254 3,160,703 -- 3,160,703
FCG.................................... 199,346 10.3378 2,060,785 -- 2,060,785
GSS.................................... 816,102 10.4116 8,497,341 -- 8,497,341
HYS.................................... 1,000,705 9.5030 9,509,687 9,324 9,519,011
MSS.................................... 211,044 10.5861 2,234,121 21,614 2,255,735
MIS.................................... 2,428,134 11.9094 28,917,948 87,345 29,005,293
MMS.................................... 886,479 10.1878 9,031,808 119,936 9,151,744
NWD.................................... 436,178 10.4124 4,541,543 23,912 4,565,455
RES.................................... 1,751,713 11.0189 19,301,999 96,452 19,398,451
RGS.................................... 387,080 10.3415 4,002,882 -- 4,002,882
RSS.................................... 181,131 9.4845 1,718,122 -- 1,718,122
SIS.................................... 157,634 9.8713 1,556,293 -- 1,556,293
TRS.................................... 2,318,847 10.2907 23,862,327 210,689 24,073,016
UTS.................................... 819,649 10.9233 8,953,383 10,545 8,963,928
WAA.................................... 228,839 9.7081 2,221,401 -- 2,221,401
WGS.................................... 76,270 11.2639 858,944 -- 858,944
WGR.................................... 162,856 10.2820 1,674,403 -- 1,674,403
WTR.................................... 152,857 10.4567 1,598,349 697 1,599,046
-------------- ----------- --------------
$ 245,480,366 $ 660,168 $ 246,140,534
-------------- ----------- --------------
Net Assets............................. $9,354,512,809 $31,181,578 $9,385,694,387
-------------- ----------- --------------
-------------- ----------- --------------
</TABLE>
See notes to financial statements
7
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Year Ended December 31, 1998
<TABLE>
<CAPTION>
BDS CAS COS CGS
Sub-Account* Sub-Account Sub-Account Sub-Account
--------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ -- $145,840,372 $ 5,578,765 $ 93,714,906
Mortality and expense risk
charges......................... (73,456) (15,736,721) (1,733,280) (17,202,966)
Distribution expense charges..... -- (84,682) -- --
Administrative expense charges... (8,815) (1,803,725) (207,994) (2,064,356)
--------------- ------------ ------------ -------------
Net investment income (loss)... $ (82,271) $128,215,244 $ 3,637,491 $ 74,447,584
--------------- ------------ ------------ -------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions
Proceeds from sales............ $5,147,887 $333,053,338 $ 18,663,825 $ 67,989,586
Cost of investments sold....... (4,931,477) (266,350,843) (13,493,338) (34,336,835)
--------------- ------------ ------------ -------------
Net realized gains
(losses).................... $ 216,410 $ 66,702,495 $ 5,170,487 $ 33,652,751
--------------- ------------ ------------ -------------
Net unrealized appreciation
(depreciation) on investments
End of year.................... $ 286,002 $287,338,195 $ 32,482,750 $ 452,834,707
Beginning of year.............. -- 165,968,995 11,851,082 285,383,733
--------------- ------------ ------------ -------------
Change in unrealized
appreciation
(depreciation).............. $ 286,002 $121,369,200 $ 20,631,668 $ 167,450,974
--------------- ------------ ------------ -------------
Realized and unrealized gains
(losses)...................... $ 502,412 $188,071,695 $ 25,802,155 $ 201,103,725
--------------- ------------ ------------ -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 420,141 $316,286,939 $ 29,439,646 $ 275,551,309
--------------- ------------ ------------ -------------
--------------- ------------ ------------ -------------
<CAPTION>
EGS EIS FCE
Sub-Account Sub-Account* Sub-Account
------------- ------------ ------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 18,895,299 $-- $ 747,426
Mortality and expense risk
charges......................... (6,840,338) (28,468) (249,740)
Distribution expense charges..... -- -- --
Administrative expense charges... (820,840) (3,416) (29,969)
------------- ------------ ------------
Net investment income (loss)... $ 11,234,121 $(31,884) $ 467,717
------------- ------------ ------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions
Proceeds from sales............ $ 67,761,609 3,$017,698 $ 16,258,903
Cost of investments sold....... (45,241,707) (3,135,184) (20,682,560)
------------- ------------ ------------
Net realized gains
(losses).................... $ 22,519,902 ($117,486) $ (4,423,657)
------------- ------------ ------------
Net unrealized appreciation
(depreciation) on investments
End of year.................... $ 194,893,156 $595,356 $ (5,357,496)
Beginning of year.............. 69,992,703 -- (1,673,420)
------------- ------------ ------------
Change in unrealized
appreciation
(depreciation).............. $ 124,900,453 $595,356 $ (3,684,076)
------------- ------------ ------------
Realized and unrealized gains
(losses)...................... $ 147,420,355 $477,870 $ (8,107,733)
------------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 158,654,476 $445,986 $ (7,640,016)
------------- ------------ ------------
------------- ------------ ------------
</TABLE>
*For the period May 6, 1998 (commencement of operations of Sub-Account) through
December 31, 1998.
See notes to financial statements
8
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Year Ended December 31, 1998 -- continued
<TABLE>
<CAPTION>
FCI FCG GSS HYS MSS MIS
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account*
----------- -------------- ----------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 317,696 1$,908,465 $20,116,757 $ 17,576,410 $ 49,435,052 $ --
Mortality and expense risk charges.... (374,634) (770,139) (4,519,127) (3,406,720) (3,954,559) (248,138)
Distribution expense charges.......... -- -- (23,267) (11,390) (25,353) --
Administrative expense charges........ (44,956) (92,417) (519,028) (397,417) (449,194) (29,777)
----------- -------------- ----------- ------------ ------------ --------------
Net investment income (loss)...... $ (101,894) 1$,045,909 $15,055,335 $ 13,760,883 $ 45,005,946 $(277,915)
----------- -------------- ----------- ------------ ------------ --------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions
Proceeds from sales................. $6,476,662 39$,966,952 $141,956,429 $127,769,004 $ 83,847,621 5$,759,463
Cost of investments sold............ (6,610,768) (34,355,430) (134,011,602) (123,024,988) (72,366,519) (5,468,843)
----------- -------------- ----------- ------------ ------------ --------------
Net realized gains (losses)....... $ (134,106) 5$,611,522 $ 7,944,827 $ 4,744,016 $ 11,481,102 $290,620
----------- -------------- ----------- ------------ ------------ --------------
Net unrealized appreciation
(depreciation) on investments
End of year......................... $ (519,445) 6$,495,614 $14,106,863 $ (7,980,287) $ 16,729,347 11$,412,175
Beginning of year................... (418,012) 2,425,793 11,293,081 12,659,920 40,525,807 --
----------- -------------- ----------- ------------ ------------ --------------
Change in unrealized appreciation
(depreciation)................... $ (101,433) 4$,069,821 $ 2,813,782 $(20,640,207) $(23,796,460) 11$,412,175
----------- -------------- ----------- ------------ ------------ --------------
Realized and unrealized gains
(losses)........................... $ (235,539) 9$,681,343 $10,758,609 $(15,896,191) $(12,315,358) 11$,702,795
----------- -------------- ----------- ------------ ------------ --------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ (337,433) 10$,727,252 $25,813,944 $ (2,135,308) $ 32,690,588 11$,424,880
----------- -------------- ----------- ------------ ------------ --------------
----------- -------------- ----------- ------------ ------------ --------------
<CAPTION>
MMS
Sub-Account
------------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 17,312,637
Mortality and expense risk charges.... (4,328,735)
Distribution expense charges.......... (17,272)
Administrative expense charges........ (502,176)
------------
Net investment income (loss)...... $ 12,464,454
------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions
Proceeds from sales................. $648,695,089
Cost of investments sold............ (648,695,089)
------------
Net realized gains (losses)....... $ --
------------
Net unrealized appreciation
(depreciation) on investments
End of year......................... $ --
Beginning of year................... --
------------
Change in unrealized appreciation
(depreciation)................... $ --
------------
Realized and unrealized gains
(losses)........................... $ --
------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 12,464,454
------------
------------
</TABLE>
*For the period May 6, 1998 (commencement of operations of Sub-Account) through
December 31, 1998.
See notes to financial statements
9
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Year Ended December 31, 1998 -- continued
<TABLE>
<CAPTION>
NWD RES RGS RSS SIS
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.......... $-- $ 34,036,093 $76,267 $-- $--
Mortality and expense risk
charges......................... (49,668) (9,949,193) (243,948) (13,748) (33,096)
Distribution expense charges..... -- -- -- -- --
Administrative expense charges... (5,960) (1,193,903) (29,274) (1,650) (3,971)
------------ ------------- ------------ ----------- ------------
Net investment income
(loss)...................... $(55,628) $ 22,892,997 ($196,955) ($15,398) $(37,067)
------------ ------------- ------------ ----------- ------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains(losses) on
investment transactions
Proceeds from sales............ 1,$614,329 $ 55,466,811 6,$084,512 5$50,369 3,$456,275
Cost of investments sold....... (1,692,255) (33,492,897) (5,571,502) (645,339) (3,545,101)
------------ ------------- ------------ ----------- ------------
Net realized gains (losses).... $(77,926) $ 21,973,914 $513,010 ($94,970) $(88,826)
------------ ------------- ------------ ----------- ------------
Net unrealized appreciation on
investments
End of year.................... 1,$504,013 $ 222,195,462 3,$487,391 1$26,682 $217,175
Beginning of year.............. -- 111,290,775 263,416 -- --
------------ ------------- ------------ ----------- ------------
Change in unrealized
appreciation................ 1,$504,013 $ 110,904,687 3,$223,975 1$26,682 $217,175
------------ ------------- ------------ ----------- ------------
Realized and unrealized
gains......................... 1,$426,087 $ 132,878,601 3,$736,985 $31,712 $128,349
------------ ------------- ------------ ----------- ------------
INCREASE IN NET ASSETS FROM
OPERATIONS........................ 1,$370,459 $ 155,771,598 3,$540,030 $16,314 $91,282
------------ ------------- ------------ ----------- ------------
------------ ------------- ------------ ----------- ------------
<CAPTION>
TRS UTS
Sub-Account Sub-Account
------------- --------------
<S> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 187,021,256 $ 17,526,264
Mortality and expense risk
charges......................... (21,072,561) (1,979,657)
Distribution expense charges..... (122,533) --
Administrative expense charges... (2,406,174) (237,559)
------------- --------------
Net investment income
(loss)...................... $ 163,419,988 $ 15,309,048
------------- --------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains(losses) on
investment transactions
Proceeds from sales............ $ 285,917,310 $ 9,858,290
Cost of investments sold....... (234,220,673) (6,719,351)
------------- --------------
Net realized gains (losses).... $ 51,696,637 $ 3,138,939
------------- --------------
Net unrealized appreciation on
investments
End of year.................... $ 247,870,707 $ 34,293,510
Beginning of year.............. 297,846,753 28,380,652
------------- --------------
Change in unrealized
appreciation................ $ (49,976,046) $ 5,912,858
------------- --------------
Realized and unrealized
gains......................... $ 1,720,591 $ 9,051,797
------------- --------------
INCREASE IN NET ASSETS FROM
OPERATIONS........................ $ 165,140,579 $ 24,360,845
------------- --------------
------------- --------------
</TABLE>
*For the period May 6, 1998 (commencement of operations of Sub-Account) through
December 31, 1998.
See notes to financial statements
10
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Year Ended December 31, 1998 -- continued
<TABLE>
<CAPTION>
WAA WGS WGR WTR
Sub-Account Sub-Account Sub-Account Sub-Account Total
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 9,239,610 $ 1,161,945 $ 18,963,375 $ 3,790,536 $ 643,259,131
Mortality and expense risk charges.... (1,568,686) (1,115,945) (3,101,995) (1,031,335) (99,626,853)
Distribution expense charges.......... -- (8,707) -- -- (293,204)
Administrative expense charges........ (188,242) (125,206) (372,239) (123,760) (11,662,018)
------------ ------------ ------------ ------------ -------------
Net investment income (loss)...... $ 7,482,682 $ (87,913) $ 15,489,141 $ 2,635,441 $ 531,677,056
------------ ------------ ------------ ------------ -------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions
Proceeds from sales................. $ 28,323,513 $ 36,276,075 $ 47,578,064 $ 15,451,732 $2,056,941,346
Cost of investments sold............ (24,630,654) (36,774,597) (35,986,240) (11,648,715) (1,807,632,507)
------------ ------------ ------------ ------------ -------------
Net realized gains (losses)....... $ 3,692,859 $ (498,522) $ 11,591,824 $ 3,803,017 $ 249,308,839
------------ ------------ ------------ ------------ -------------
Net unrealized appreciation
(depreciation) on investments
End of year......................... $ 3,446,679 $ 6,569,807 $ 33,369,072 $ 14,614,468 $1,571,011,903
Beginning of year................... 9,486,253 (5,701,264) 31,911,034 8,223,467 1,079,710,768
------------ ------------ ------------ ------------ -------------
Change in unrealized appreciation
(depreciation)................... $ (6,039,574) $ 12,271,071 $ 1,458,038 $ 6,391,001 $ 491,301,135
------------ ------------ ------------ ------------ -------------
Realized and unrealized gains
(losses)........................... $ (2,346,715) $ 11,772,549 $ 13,049,862 $ 10,194,018 $ 740,609,974
------------ ------------ ------------ ------------ -------------
INCREASE IN NET ASSETS FROM
OPERATIONS............................. $ 5,135,967 $ 11,684,636 $ 28,539,003 $ 12,829,459 $1,272,287,030
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
</TABLE>
See notes to financial statements
11
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BDS CAS COS
Sub-Account Sub-Account Sub-Account
------------ -------------------------------- ---------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1998* 1998 1997 1998 1997
------------ --------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ (82,271) $ 128,215,244 $ 74,369,495 $ 3,637,491 $ (375,236)
Net realized gains............... 216,410 66,702,495 86,668,781 5,170,487 337,679
Net unrealized gains............. 286,002 121,369,200 32,342,322 20,631,668 11,106,441
------------ --------------- --------------- ------------- ------------
Increase in net assets from
operations.................. $ 420,141 $ 316,286,939 $ 193,380,598 $ 29,439,646 $ 11,068,884
------------ --------------- --------------- ------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 9,875,456 $ 107,933,141 $ 191,209,464 $ 38,230,487 $ 29,587,412
Net transfers between
Sub-Accounts and Fixed
Account....................... 9,534,568 47,848,492 28,967,751 40,051,430 31,786,583
Withdrawals, surrenders,
annuitizations and contract
charges....................... (395,676) (114,794,853) (177,738,789) (7,541,790) (2,199,052)
------------ --------------- --------------- ------------- ------------
Net accumulation activity.... $ 19,014,348 $ 40,986,780 $ 42,438,426 $ 70,740,127 $ 59,174,943
------------ --------------- --------------- ------------- ------------
Annuitization Activity:
Annuitizations................. $ 164,170 $ 1,220,067 $ 1,367,156 $ 142,386 $ 136,454
Annuity payments and contract
charges....................... (3,903) (1,025,009) (736,487) (46,545) (15,580)
Net Transfers between
Sub-Accounts.................. -- (41,318) 40,842 25,440 --
Adjustments to annuity
reserves...................... (12,668) (88,123) (64,938) (10,400) (4,256)
------------ --------------- --------------- ------------- ------------
Net annuitization activity..... $ 147,599 $ 65,617 $ 606,573 $ 110,881 $ 116,618
------------ --------------- --------------- ------------- ------------
Increase in net assets from
contract owner transactions..... $ 19,161,947 $ 41,052,397 $ 43,044,999 $ 70,851,008 $ 59,291,561
------------ --------------- --------------- ------------- ------------
Increase in net assets......... $ 19,582,088 $ 357,339,336 $ 236,425,597 $ 100,290,654 $ 70,360,445
------------ --------------- --------------- ------------- ------------
NET ASSETS:
Beginning of year................ -- 1,137,110,414 900,684,817 87,069,332 16,708,887
------------ --------------- --------------- ------------- ------------
End of year...................... $ 19,582,088 $ 1,494,449,750 $ 1,137,110,414 $ 187,359,986 $ 87,069,332
------------ --------------- --------------- ------------- ------------
------------ --------------- --------------- ------------- ------------
<CAPTION>
CGS
Sub-Account
--------------------------------
Year Ended Year Ended
Dec. 31, Dec. 31,
1998 1997
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 74,447,584 $ 24,679,106
Net realized gains............... 33,652,751 9,412,903
Net unrealized gains............. 167,450,974 162,512,568
--------------- ---------------
Increase in net assets from
operations.................. $ 275,551,309 $ 196,604,577
--------------- ---------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 265,107,890 $ 211,472,643
Net transfers between
Sub-Accounts and Fixed
Account....................... 206,082,223 176,163,947
Withdrawals, surrenders,
annuitizations and contract
charges....................... (88,307,981) (42,133,444)
--------------- ---------------
Net accumulation activity.... $ 382,882,132 $ 345,503,146
--------------- ---------------
Annuitization Activity:
Annuitizations................. $ 2,012,633 $ 947,612
Annuity payments and contract
charges....................... (713,563) (271,967)
Net Transfers between
Sub-Accounts.................. (116,539) 354,557
Adjustments to annuity
reserves...................... 265,082 52,749
--------------- ---------------
Net annuitization activity..... $ 1,447,613 $ 1,082,951
--------------- ---------------
Increase in net assets from
contract owner transactions..... $ 384,329,745 $ 346,586,097
--------------- ---------------
Increase in net assets......... $ 659,881,054 $ 543,190,674
--------------- ---------------
NET ASSETS:
Beginning of year................ 1,067,010,686 523,820,012
--------------- ---------------
End of year...................... $ 1,726,891,740 $ 1,067,010,686
--------------- ---------------
--------------- ---------------
</TABLE>
*For the period May 6, 1998 (commencement of operations of Sub-Account) through
December 31, 1998.
See notes to financial statements
12
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
EGS EIS FCE
Sub-Account Sub-Account Sub-Account
---------------------------- ------------ --------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1998 1997 1998* 1998 1997
------------- ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 11,234,121 $ (3,455,859) $ (31,884) $ 467,717 $ (230,489)
Net realized gains (losses)...... 22,519,902 8,307,222 (117,486) (4,423,657) 974,141
Net unrealized gains (losses).... 124,900,453 53,637,553 595,356 (3,684,076) (1,720,809)
------------- ------------- ------------ ------------ ------------
Increase (decrease) in net
assets from operations...... $ 158,654,476 $ 58,488,916 $ 445,986 $ (7,640,016) $ (977,157)
------------- ------------- ------------ ------------ ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 90,838,283 $ 95,095,489 $ 4,758,335 $ 2,734,886 $ 9,918,873
Net transfers between
Sub-Accounts and Fixed
Account....................... 40,488,353 57,336,795 3,493,264 (1,032,098) 12,522,767
Withdrawals, surrenders,
annuitizations and contract
charges....................... (30,769,813) (16,909,470) (205,828) (897,534) (953,005)
------------- ------------- ------------ ------------ ------------
Net accumulation activity.... $ 100,556,823 $ 135,522,814 $ 8,045,771 $ 805,254 $ 21,488,635
------------- ------------- ------------ ------------ ------------
Annuitization Activity:
Annuitizations................. $ 453,478 $ 158,875 $ -- $ 3,586 $ 39,195
Annuity payments and contract
charges....................... (113,219) (58,246) -- (7,084) (5,864)
Net transfers between
Sub-Accounts.................. (5,495) 21,015 -- -- --
Adjustments to annuity
reserves...................... 128,245 7,823 -- 218 (1,465)
------------- ------------- ------------ ------------ ------------
Net annuitization activity... $ 463,009 $ 129,467 $ -- $ (3,280) $ 31,866
------------- ------------- ------------ ------------ ------------
Increase in net assets from
contract owner transactions..... $ 101,019,832 $ 135,652,281 $ 8,045,771 $ 801,974 $ 21,520,501
------------- ------------- ------------ ------------ ------------
Increase (decrease) in net
assets........................ $ 259,674,308 $ 194,141,197 $ 8,491,757 $ (6,838,042) $ 20,543,344
------------- ------------- ------------ ------------ ------------
NET ASSETS:
Beginning of year................ 441,273,185 247,131,988 -- 23,814,780 3,271,436
------------- ------------- ------------ ------------ ------------
End of year...................... $ 700,947,493 $ 441,273,185 $ 8,491,757 $ 16,976,738 $ 23,814,780
------------- ------------- ------------ ------------ ------------
------------- ------------- ------------ ------------ ------------
<CAPTION>
FCI
Sub-Account
--------------------------
Year Ended Year Ended
Dec. 31, Dec. 31,
1998 1997
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ (101,894) $ (193,476)
Net realized gains (losses)...... (134,106) (156,246)
Net unrealized gains (losses).... (101,433) (353,885)
------------ ------------
Increase (decrease) in net
assets from operations...... $ (337,433) $ (703,607)
------------ ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 8,231,578 $ 10,356,882
Net transfers between
Sub-Accounts and Fixed
Account....................... 5,579,377 8,764,120
Withdrawals, surrenders,
annuitizations and contract
charges....................... (1,479,723) (683,649)
------------ ------------
Net accumulation activity.... $ 12,331,232 $ 18,437,353
------------ ------------
Annuitization Activity:
Annuitizations................. $ 1,716 $ 55,177
Annuity payments and contract
charges....................... (5,621) (2,405)
Net transfers between
Sub-Accounts.................. -- --
Adjustments to annuity
reserves...................... 2,415 (416)
------------ ------------
Net annuitization activity... $ (1,490) $ 52,356
------------ ------------
Increase in net assets from
contract owner transactions..... $ 12,329,742 $ 18,489,709
------------ ------------
Increase (decrease) in net
assets........................ $ 11,992,309 $ 17,786,102
------------ ------------
NET ASSETS:
Beginning of year................ 23,314,389 5,528,287
------------ ------------
End of year...................... $ 35,306,698 $ 23,314,389
------------ ------------
------------ ------------
</TABLE>
*For the period May 6, 1998 (commencement of operations of Sub-Account) through
December 31, 1998.
See notes to financial statements
13
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
FCG GSS
Sub-Account Sub-Account
-------------------------- ----------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1998 1998 1997 1998
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 1,045,909 $ (87,178) $ 15,055,335 $ 16,257,472
Net realized gains (losses)...... 5,611,522 575,848 7,944,827 (320,218)
Net unrealized gains (losses).... 4,069,821 1,624,106 2,813,782 5,893,925
------------ ------------ ------------- -------------
Increase (decrease) in net
assets from operations...... $ 10,727,252 $ 2,112,776 $ 25,813,944 $ 21,831,179
------------ ------------ ------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 7,721,923 $ 8,465,356 $ 33,941,912 $ 45,924,248
Net transfers between
Sub-Accounts and Fixed
Account....................... 8,246,837 5,802,185 49,410,266 9,720,766
Withdrawals, surrenders,
annuitizations and contract
charges....................... (4,121,150) (2,204,864) (40,854,521) (58,612,247)
------------ ------------ ------------- -------------
Net accumulation activity.... $ 11,847,610 $ 12,062,677 $ 42,497,657 $ (2,967,233)
------------ ------------ ------------- -------------
Annuitization Activity:
Annuitizations................. $ 34,551 $ 45,941 $ 1,080,791 $ 142,666
Annuity payments and contract
charges....................... (28,601) (6,247) (563,274) (181,979)
Net transfers between
Sub-Accounts.................. (17,030) -- (10,317) (55,523)
Adjustments to annuity
reserves...................... (10,148) 62 17,162 111,855
------------ ------------ ------------- -------------
Net annuitization activity... $ (21,228) $ 39,756 $ 524,362 $ 17,019
------------ ------------ ------------- -------------
Increase (decrease) in net assets
from contract owner
transactions.................... $ 11,826,382 $ 12,102,433 $ 43,022,019 $ (2,950,214)
------------ ------------ ------------- -------------
Increase in net assets......... $ 22,553,634 $ 14,215,209 $ 68,835,963 $ 18,880,965
------------ ------------ ------------- -------------
NET ASSETS:
Beginning of year................ 49,346,218 35,131,009 331,304,242 312,423,277
------------ ------------ ------------- -------------
End of year...................... $ 71,899,852 $ 49,346,218 $ 400,140,205 $ 331,304,242
------------ ------------ ------------- -------------
------------ ------------ ------------- -------------
<CAPTION>
HYS
Sub-Account
----------------------------
Year Ended Year Ended
Dec. 31, Dec. 31,
1998 1997
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 13,760,883 $ 9,894,976
Net realized gains (losses)...... 4,744,016 6,191,967
Net unrealized gains (losses).... (20,640,207) 5,472,328
------------- -------------
Increase (decrease) in net
assets from operations...... $ (2,135,308) $ 21,559,271
------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 54,795,963 $ 56,445,474
Net transfers between
Sub-Accounts and Fixed
Account....................... 20,587,340 35,346,824
Withdrawals, surrenders,
annuitizations and contract
charges....................... (24,841,987) (37,189,764)
------------- -------------
Net accumulation activity.... $ 50,541,316 $ 54,602,534
------------- -------------
Annuitization Activity:
Annuitizations................. $ 514,021 $ 403,156
Annuity payments and contract
charges....................... (301,855) (164,426)
Net transfers between
Sub-Accounts.................. -- --
Adjustments to annuity
reserves...................... 44,449 2,369
------------- -------------
Net annuitization activity... $ 256,615 $ 241,099
------------- -------------
Increase (decrease) in net assets
from contract owner
transactions.................... $ 50,797,931 $ 54,843,633
------------- -------------
Increase in net assets......... $ 48,662,623 $ 76,402,904
------------- -------------
NET ASSETS:
Beginning of year................ 237,675,412 161,272,508
------------- -------------
End of year...................... $ 286,338,035 $ 237,675,412
------------- -------------
------------- -------------
</TABLE>
See notes to financial statements
14
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MSS MIS
Sub-Account Sub-Account
---------------------------- ------------
Year Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31,
1998 1997 1998*
------------- ------------- ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 45,005,946 $ 25,345,850 $ (277,915)
Net realized gains (losses)...... 11,481,102 19,553,090 290,620
Net unrealized gains (losses).... (23,796,460) 11,613,272 11,412,175
------------- ------------- ------------
Increase in net assets from
operations.................. $ 32,690,588 $ 56,512,212 $ 11,424,880
------------- ------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 22,720,393 $ 56,177,555 $ 42,898,409
Net transfers between
Sub-Accounts and Fixed
Account....................... (5,210,223) 12,554,894 27,944,745
Withdrawals, surrenders,
annuitizations and contract
charges....................... (28,997,564) (57,321,938) (1,223,987)
------------- ------------- ------------
Net accumulation activity.... $ (11,487,394) $ 11,410,511 $ 69,619,167
------------- ------------- ------------
Annuitization Activity:
Annuitizations................. $ 360,666 $ 558,077 $ 158,201
Annuity payments and contract
charges....................... (278,169) (166,248) (10,253)
Net transfers between
Sub-Accounts.................. (6,870) -- --
Adjustments to annuity
reserves...................... (3,336) (43,539) (1,090)
------------- ------------- ------------
Net annuitization activity... $ 72,291 $ 348,290 $ 146,858
------------- ------------- ------------
Increase (decrease) in net assets
from contract owner
transactions.................... $ (11,415,103) $ 11,758,801 $ 69,766,025
------------- ------------- ------------
Increase (decrease) in net
assets........................ $ 21,275,485 $ 68,271,013 $ 81,190,905
------------- ------------- ------------
NET ASSETS:
Beginning of year................ 312,825,526 244,554,513 --
------------- ------------- ------------
End of year...................... $ 334,101,011 $ 312,825,526 $ 81,190,905
------------- ------------- ------------
------------- ------------- ------------
<CAPTION>
MMS NWD
Sub-Account Sub-Account
---------------------------- ------------
Year Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31,
1998 1997 1998*
------------- ------------- ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 12,464,454 $ 12,238,449 $ (55,628)
Net realized gains (losses)...... -- -- (77,926)
Net unrealized gains (losses).... -- -- 1,504,013
------------- ------------- ------------
Increase in net assets from
operations.................. $ 12,464,454 $ 12,238,449 $ 1,370,459
------------- ------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received..... $ 84,539,955 $ 151,523,026 $ 5,928,260
Net transfers between
Sub-Accounts and Fixed
Account....................... 205,348,459 (1,240,893) 6,269,724
Withdrawals, surrenders,
annuitizations and contract
charges....................... (180,586,976) (229,658,956) (345,722)
------------- ------------- ------------
Net accumulation activity.... $ 109,301,438 $ (79,376,823) $ 11,852,262
------------- ------------- ------------
Annuitization Activity:
Annuitizations................. $ 1,223,366 $ 79,534 $ 59,889
Annuity payments and contract
charges....................... (267,886) (200,563) (3,118)
Net transfers between
Sub-Accounts.................. (4,847) (312,207) --
Adjustments to annuity
reserves...................... (38,667) (31,750) (2,368)
------------- ------------- ------------
Net annuitization activity... $ 911,966 $ (464,986) $ 54,403
------------- ------------- ------------
Increase (decrease) in net assets
from contract owner
transactions.................... $ 110,213,404 $ (79,841,809) $ 11,906,665
------------- ------------- ------------
Increase (decrease) in net
assets........................ $ 122,677,858 $ (67,603,360) $ 13,277,124
------------- ------------- ------------
NET ASSETS:
Beginning of year................ 294,227,489 361,830,849 --
------------- ------------- ------------
End of year...................... $ 416,905,347 $ 294,227,489 $ 13,277,124
------------- ------------- ------------
------------- ------------- ------------
</TABLE>
*For the period May 6, 1998 (commencement of operations of Sub-Account) through
December 31, 1998.
See notes to financial statements
15
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RES RGS
Sub-Account Sub-Account
---------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1998 1997 1998 1997**
------------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).................... $ 22,892,997 $ 5,840,008 $ (196,955) $ (21,782)
Net realized gains (losses)..................... 21,973,914 5,057,991 513,010 8,741
Net unrealized gains............................ 110,904,687 68,490,719 3,223,975 263,416
------------- ------------- ------------ -----------
Increase in net assets from operations...... $ 155,771,598 $ 79,388,718 $ 3,540,030 $ 250,375
------------- ------------- ------------ -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.................... $ 103,921,694 $ 153,316,348 $ 13,378,132 $ 2,950,897
Net transfers between Sub-Accounts and Fixed
Account...................................... 82,986,033 119,233,197 14,755,314 2,726,224
Withdrawals, surrenders, annuitizations and
contract charges............................. (44,188,615) (24,008,616) (1,413,449) (29,969)
------------- ------------- ------------ -----------
Net accumulation activity................... $ 142,719,112 $ 248,540,929 $ 26,719,997 $ 5,647,152
------------- ------------- ------------ -----------
Annuitization Activity:
Annuitizations................................ $ 452,588 $ 415,748 $ 73,112 $ --
Annuity payments and contract charges......... (211,454) (139,282) (12,398) --
Net transfers between Sub-Accounts............ 34,374 12,992 58,620 --
Adjustments to annuity reserves............... (35,852) (40,528) (2,709) --
------------- ------------- ------------ -----------
Net annuitization activity.................. $ 239,656 $ 248,930 $ 116,625 $ --
------------- ------------- ------------ -----------
Increase in net assets from contract owner
transactions................................... $ 142,958,768 $ 248,789,859 $ 26,836,622 $ 5,647,152
------------- ------------- ------------ -----------
Increase in net assets........................ $ 298,730,366 $ 328,178,577 $ 30,376,652 $ 5,897,527
------------- ------------- ------------ -----------
NET ASSETS:
Beginning of year............................... 649,281,186 321,102,609 5,897,527 --
------------- ------------- ------------ -----------
End of year..................................... $ 948,011,552 $ 649,281,186 $ 36,274,179 $ 5,897,527
------------- ------------- ------------ -----------
------------- ------------- ------------ -----------
<CAPTION>
RSS SIS
Sub-Account Sub-Account
------------ -----------
Year Ended Year Ended
Dec. 31, Dec. 31,
1998* 1998*
------------ -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss).................... $ (15,398) $ (37,067)
Net realized gains (losses)..................... (94,970) (88,826)
Net unrealized gains............................ 126,682 217,175
------------ -----------
Increase in net assets from operations...... $ 16,314 $ 91,282
------------ -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.................... $2,275,775 $3,255,808
Net transfers between Sub-Accounts and Fixed
Account...................................... 1,268,571 4,501,699
Withdrawals, surrenders, annuitizations and
contract charges............................. (41,350) (67,691)
------------ -----------
Net accumulation activity................... $3,502,996 $7,689,816
------------ -----------
Annuitization Activity:
Annuitizations................................ $ -- $ --
Annuity payments and contract charges......... -- --
Net transfers between Sub-Accounts............ -- --
Adjustments to annuity reserves............... -- --
------------ -----------
Net annuitization activity.................. $ -- $ --
------------ -----------
Increase in net assets from contract owner
transactions................................... $3,502,996 $7,689,816
------------ -----------
Increase in net assets........................ $3,519,310 $7,781,098
------------ -----------
NET ASSETS:
Beginning of year............................... -- --
------------ -----------
End of year..................................... $3,519,310 $7,781,098
------------ -----------
------------ -----------
</TABLE>
* For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
** For the period July 7, 1997 (commencement of operations of Sub-Account)
through December 31, 1997.
See notes to financial statements
16
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
TRS UTS
Sub-Account Sub-Account
-------------------------------- ----------------------------
Year Ended Year Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1998 1997 1998 1997
--------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income........................... $ 163,419,988 $ 116,769,728 $ 15,309,048 $ 7,729,340
Net realized gains.............................. 51,696,637 66,640,057 3,138,939 2,083,741
Net unrealized gains (losses)................... (49,976,046) 74,650,982 5,912,858 14,781,219
--------------- --------------- ------------- -------------
Increase in net assets from operations...... $ 165,140,579 $ 258,060,767 $ 24,360,845 $ 24,594,300
--------------- --------------- ------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.................... $ 144,694,740 $ 260,379,742 $ 39,799,198 $ 16,090,619
Net transfers between Sub-Accounts and Fixed
Account...................................... 99,107,901 90,568,461 40,165,423 13,552,388
Withdrawals, surrenders, annuitizations and
contract charges............................. (174,048,588) (276,158,725) (10,679,491) (5,005,318)
--------------- --------------- ------------- -------------
Net accumulation activity................... $ 69,754,053 $ 74,789,478 $ 69,285,130 $ 24,637,689
--------------- --------------- ------------- -------------
Annuitization Activity:
Annuitizations................................ $ 2,556,048 $ 1,271,371 $ 357,771 $ 165,628
Annuity payments and contract charges......... (1,415,164) (935,550) (266,331) (60,528)
Net transfers between Sub-Accounts............ 104,077 87,811 93,575 28,886
Adjustments to annuity reserves............... 157,679 (136,590) 117,915 2,804
--------------- --------------- ------------- -------------
Net annuitization activity.................. $ 1,402,640 $ 287,042 $ 302,930 $ 136,790
--------------- --------------- ------------- -------------
Increase (decrease) in net assets from contract
owner transactions............................. $ 71,156,693 $ 75,076,520 $ 69,588,060 $ 24,774,479
--------------- --------------- ------------- -------------
Increase in net assets........................ $ 236,297,272 $ 333,137,287 $ 93,948,905 $ 49,368,779
--------------- --------------- ------------- -------------
NET ASSETS:
Beginning of year............................... 1,579,783,984 1,246,646,697 117,306,075 67,937,296
--------------- --------------- ------------- -------------
End of year..................................... $ 1,816,081,256 $ 1,579,783,984 $ 211,254,980 $ 117,306,075
--------------- --------------- ------------- -------------
--------------- --------------- ------------- -------------
<CAPTION>
WAA
Sub-Account
----------------------------
Year Ended Year Ended
Dec. 31, Dec. 31,
1998 1997
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income........................... $ 7,482,682 $ 3,255,293
Net realized gains.............................. 3,692,859 2,612,317
Net unrealized gains (losses)................... (6,039,574) 2,483,575
------------- -------------
Increase in net assets from operations...... $ 5,135,967 $ 8,351,185
------------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.................... $ 8,860,816 $ 23,232,543
Net transfers between Sub-Accounts and Fixed
Account...................................... (4,974,353) 17,783,698
Withdrawals, surrenders, annuitizations and
contract charges............................. (6,184,345) (5,742,891)
------------- -------------
Net accumulation activity................... $ (2,297,882) $ 35,273,350
------------- -------------
Annuitization Activity:
Annuitizations................................ $ 196,381 $ 167,170
Annuity payments and contract charges......... (88,583) (51,214)
Net transfers between Sub-Accounts............ 1,087 79,307
Adjustments to annuity reserves............... (39,140) 487
------------- -------------
Net annuitization activity.................. $ 69,745 $ 195,750
------------- -------------
Increase (decrease) in net assets from contract
owner transactions............................. $ (2,228,137) $ 35,469,100
------------- -------------
Increase in net assets........................ $ 2,907,830 $ 43,820,285
------------- -------------
NET ASSETS:
Beginning of year............................... 120,437,782 76,617,497
------------- -------------
End of year..................................... $ 123,345,612 $ 120,437,782
------------- -------------
------------- -------------
</TABLE>
See notes to financial statements
17
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
WGS WGR WTR
Sub-Account Sub-Account Sub-Account
---------------------------- ---------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1998 1997 1998 1997 1998 1997
------------- ------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (87,913) $ 2,978,724 $ 15,489,141 $ 1,724,285 $ 2,635,441 $ 518,499
Net realized gains (losses)........... (498,522) (5,597,019) 11,591,824 8,571,645 3,803,017 1,518,827
Net unrealized gains (losses)......... 12,271,071 (269,307) 1,458,038 16,669,581 6,391,001 4,352,747
------------- ------------- ------------- ------------- ------------ ------------
Increase (decrease) in net assets
from operations.................. $ 11,684,636 $ (2,887,602) $ 28,539,003 $ 26,965,511 $ 12,829,459 $ 6,390,073
------------- ------------- ------------- ------------- ------------ ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 3,786,224 $ 11,552,959 $ 15,688,080 $ 26,811,741 $ 8,845,349 $ 15,459,554
Net transfers between Sub-Accounts
and Fixed Account.................. (12,675,687) (19,473,409) (6,628,067) 3,906,046 8,428,546 13,106,711
Withdrawals, surrenders,
annuitizations and contract
charges............................ (11,908,423) (17,997,612) (14,148,887) (13,503,627) (4,603,063) (2,840,427)
------------- ------------- ------------- ------------- ------------ ------------
Net accumulation activity......... $ (20,797,886) $ (25,918,062) $ (5,088,874) $ 17,214,160 $ 12,670,832 $ 25,725,838
------------- ------------- ------------- ------------- ------------ ------------
Annuitization Activity:
Annuitizations...................... $ 158,700 $ 101,934 $ 107,920 $ 112,909 $ 134,223 $ 215,870
Annuity payments and contract
charges............................ (130,085) (132,080) (104,706) (92,720) (61,120) (28,925)
Net transfers between
Sub-Accounts....................... -- (8,188) (114,522) (249,492) -- --
Adjustments to annuity reserves..... 3,766 (5,055) (5,286) (31,480) 16,790 (3,240)
------------- ------------- ------------- ------------- ------------ ------------
Net annuitization activity........ $ 32,381 $ (43,389) $ (116,594) $ (260,783) $ 89,893 $ 183,705
------------- ------------- ------------- ------------- ------------ ------------
Increase (decrease) in net assets from
contract owner transactions.......... $ (20,765,505) $ (25,961,451) $ (5,205,468) $ 16,953,377 $ 12,760,725 $ 25,909,543
------------- ------------- ------------- ------------- ------------ ------------
Increase (decrease) in net assets... $ (9,080,869) $ (28,849,053) $ 23,333,535 $ 43,918,888 $ 25,590,184 $ 32,299,616
------------- ------------- ------------- ------------- ------------ ------------
NET ASSETS:
Beginning of year..................... 98,894,832 127,743,885 237,145,701 193,226,813 69,684,288 37,384,672
------------- ------------- ------------- ------------- ------------ ------------
End of year........................... $ 89,813,963 $ 98,894,832 $ 260,479,236 $ 237,145,701 $ 95,274,472 $ 69,684,288
------------- ------------- ------------- ------------- ------------ ------------
------------- ------------- ------------- ------------- ------------ ------------
</TABLE>
See notes to financial statements
18
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
Total
---------------------------------
Year Ended Year Ended
Dec. 31, Dec. 31,
1998 1997
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income.................................................................. $ 531,677,056 $ 297,237,205
Net realized gains..................................................................... 249,308,839 212,441,467
Net unrealized gains................................................................... 491,301,135 463,550,753
--------------- ---------------
Increase in net assets from operations............................................. 1,272,287,030 $ 973,229,425
--------------- ---------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received........................................................... 1,124,762,687 $ 1,375,970,825
Net transfers between Sub-Accounts and Fixed Account................................. 891,578,137 619,129,055
Withdrawals, surrenders, annuitizations and contract charges......................... (792,649,007) (970,892,363)
--------------- ---------------
Net accumulation activity.......................................................... $ 1,223,691,817 $ 1,024,207,517
--------------- ---------------
Annuitization Activity:
Annuitizations....................................................................... 11,466,264 $ 6,384,473
Annuity payments and contract charges................................................ (5,657,941) (3,250,311)
Net transfers between Sub-Accounts................................................... 235 --
Adjustments to annuity reserves...................................................... 503,934 (185,108)
--------------- ---------------
Net annuitization activity......................................................... $ 6,312,492 $ 2,949,054
--------------- ---------------
Increase in net assets from contract owner transactions................................ $ 1,230,004,309 $ 1,027,156,571
--------------- ---------------
Increase in net assets............................................................... $ 2,502,291,339 $ 2,000,385,996
--------------- ---------------
NET ASSETS:
Beginning of year...................................................................... 6,883,403,048 4,883,017,052
--------------- ---------------
End of year............................................................................ $ 9,385,694,387 $ 6,883,403,048
--------------- ---------------
--------------- ---------------
</TABLE>
See notes to financial statements
19
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life of Canada (U.S.) Variable Account F (the "Variable Account"), a
separate account of Sun Life Assurance Company of Canada (U.S.), (the
"Sponsor"), was established on July 13, 1989 as a funding vehicle for the
variable portion of Regatta contracts, Regatta Gold contracts, Regatta Classic
contracts, Regatta Platinum contracts (collectively, the "Contracts") and
certain other fixed and variable annuity contracts issued by the Sponsor. The
Variable Account is registered with the Securities and Exchange Commission under
the Investment Company Act of 1940 as a unit investment trust.
The assets of the Variable Account are divided into Sub-Accounts. Each
Sub-Account attributable to the Contracts is invested in shares of a specific
corresponding series of MFS/Sun Life Series Trust (the "Series Trust"), an
open-end management investment company registered under the Investment Company
Act of 1940. Massachusetts Financial Services Company ("MFS"), an affiliate of
the Sponsor, is the investment adviser to the Series Trust.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Sponsor's management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
INVESTMENT VALUATIONS
Investments in shares of the Series Trust are recorded at their net asset value.
Realized gains and losses on sales of shares of the Series Trust are determined
on the identified cost basis. Dividend income and capital gain distributions
received by the Sub-Accounts are reinvested in additional Series Trust shares
and are recognized on the ex-dividend date.
Exchanges between Sub-Accounts requested by participants under the Contracts are
recorded in the new Sub-Account upon receipt of the redemption proceeds.
FEDERAL INCOME TAX STATUS
The operations of the Variable Account are part of the operations of the Sponsor
and are not taxed separately. The Variable Account is not taxed as a regulated
investment company. The Sponsor qualifies for the federal income tax treatment
granted to life insurance companies under Subchapter L of the Internal Revenue
Code. Under existing federal income tax law, investment income and capital gains
earned by the Variable Account on contract owner reserves are not taxable and,
therefore, no provision has been made for federal income taxes.
20
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(3) CONTRACT CHARGES
A mortality and expense risk charge based on the value of the Variable Account
is deducted from the Variable Account at the end of each valuation period for
the mortality and expense risks assumed by the Sponsor. The deductions are
transferred periodically to the Sponsor. Currently, the deduction is at an
effective annual rate of 1.25% for Regatta, Regatta Gold and Regatta Platinum
contracts and 1.00% for Regatta Classic contracts.
Each year on the account anniversary, an account administration fee ("Account
Fee") equal to the lesser of $30 or 2% of the participant's account value in the
case of Regatta and Regatta Gold contracts, $35 in the case of Regatta Platinum
contracts and $50 in the case of Regatta Classic contracts is deducted from the
participant's account to reimburse the Sponsor for certain administrative
expenses. After the annuity commencement date, the Account Fee will be deducted
pro rata from each variable annuity payment made during the year.
The Sponsor does not deduct a sales charge from purchase payments. However, in
the case of Regatta, Regatta Gold and Regatta Platinum, a withdrawal charge
(contingent deferred sales charge) of up to 6% of certain amounts withdrawn,
when applicable, may be deducted to cover certain expenses relating to the sale
of the contracts and certificates. In the case of Regatta Classic, a withdrawal
charge of 1% is applied to purchase payments withdrawn which have been credited
to a participant's account for less than one year.
For assuming the risk that withdrawal charges may be insufficient to compensate
it for the costs of distributing the Regatta contracts, the Sponsor makes a
deduction from the Variable Account at the end of each valuation period for the
first seven account years at an effective annual rate of 0.15% of the net assets
attributable to such contracts. No deduction for the distribution expense charge
is made after the seventh account anniversary.
As reimbursement for administrative expenses attributable to Regatta Gold,
Regatta Classic and Regatta Platinum contracts, which exceed the revenues
received from the Account Fees described above derived from such contracts, the
Sponsor makes a deduction from the Variable Account at the end of each valuation
period at an effective annual rate of 0.15% of the net assets attributable to
such contracts.
(4) ANNUITY RESERVES
Annuity reserves are calculated using the 1983 Individual Annuitant Mortality
Table and an assumed interest rate of 4% or 3%, as stated in each participant's
contract or certificate, as applicable. Required adjustments to the reserves are
accomplished by transfers to or from the Sponsor.
21
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS
<TABLE>
<CAPTION>
Units Transferred
Between Sub-Accounts
and
Units Outstanding Units Fixed Accumulation
Beginning of Year Purchased Account
--------------------- -------------- ----------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
1998 1997 1998 1997 1998 1997
--------- ---------- ----- ------- ---------- ----------
MFS REGATTA CONTRACTS:
------------------------------
<S> <C> <C> <C> <C> <C> <C>
CAS -- Level 1................ 2,993,020 6,316,305 -- 860 (2,286,027) (2,421,311)
CAS -- Level 2................ 5,390,680 58,968 -- 624,374 5,658,421 6,542,104
GSS -- Level 1................ 1,462,222 3,362,650 -- -- (932,035) (1,340,875)
GSS -- Level 2................ 1,514,633 55,891 -- 265,628 1,951,275 2,012,610
HYS -- Level 1................ 537,033 1,204,380 -- -- (384,324) (510,706)
HYS -- Level 2*............... 975,126 -- -- 64,893 742,028 1,416,411
MSS -- Level 1................ 941,686 2,202,213 -- 881 (678,909) (924,959)
MSS -- Level 2................ 2,022,757 14,270 -- 240,391 1,359,567 2,378,532
MMS -- Level 1................ 1,518,722 3,859,738 12,315 1,948 1,824,176 3,301,197
MMS -- Level 2................ 1,845,809 59,562 8,252 310,378 6,810,959 6,074,695
TRS -- Level 1................ 5,756,653 12,461,003 4,933 1,598 (4,180,220) (4,580,966)
TRS -- Level 2................ 7,838,741 32,548 2,056 815,196 8,389,482 10,202,663
WGS -- Level 1................ 700,338 1,460,289 -- -- (536,114) (584,950)
WGS -- Level 2................ 483,253 3,325 -- 34,073 702,569 686,256
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Year
---------------------- --------------------
Year Ended Year Ended
December 31, December 31,
1998 1997 1998 1997
---------- ---------- --------- ---------
MFS REGATTA CONTRACTS:
------------------------------
<S> <C> <C> <C> <C>
CAS -- Level 1................ (242,644) (902,834) 464,349 2,993,020
CAS -- Level 2................ (1,995,108) (1,834,766) 9,053,993 5,390,680
GSS -- Level 1................ (204,946) (559,553) 325,241 1,462,222
GSS -- Level 2................ (808,930) (819,496) 2,656,978 1,514,633
HYS -- Level 1................ (79,077) (156,641) 73,632 537,033
HYS -- Level 2*............... (396,775) (506,178) 1,320,379 975,126
MSS -- Level 1................ (66,314) (336,449) 196,463 941,686
MSS -- Level 2................ (651,427) (610,436) 2,730,897 2,022,757
MMS -- Level 1................ (3,086,766) (5,644,161) 268,447 1,518,722
MMS -- Level 2................ (4,942,262) (4,598,826) 3,722,758 1,845,809
TRS -- Level 1................ (683,229) (2,124,982) 898,137 5,756,653
TRS -- Level 2................ (3,723,849) (3,211,666) 12,506,430 7,838,741
WGS -- Level 1................ (74,896) (175,001) 89,328 700,338
WGS -- Level 2................ (351,812) (240,401) 834,010 483,253
</TABLE>
*For the period January 6, 1997 (commencement of operations of Sub-Account)
through December 31, 1997.
22
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
Units Transferred
Between
Sub-Accounts
and
Units Outstanding Fixed Accumulation
Beginning of Year Units Purchased Account
---------------------- ----------------------
----------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
1998 1997 1998 1997 1998 1997
---------- ---------- ---------- -------------------- ----------
MFS REGATTA GOLD
CONTRACTS:
------------
<S> <C> <C> <C> <C> <C> <C>
BDS+.......................... -- -- 437,383 -- 776,227 --
CAS........................... 35,528,897 32,796,793 2,963,417 4,171,857 1,606,290 753,855
COS........................... 6,175,224 1,520,787 2,085,178 2,333,873 2,487,753 2,499,269
CGS........................... 40,709,531 26,199,975 7,531,155 8,951,992 6,682,559 7,405,405
EGS........................... 25,039,986 16,998,044 3,519,560 5,826,649 1,929,406 3,279,517
EIS+.......................... -- -- 235,337 -- 312,512 --
FCE........................... 2,159,228 329,630 203,168 815,491 (114,376) 1,097,883
FCI........................... 2,390,056 564,742 532,412 997,740 520,640 902,857
FCG........................... 4,441,911 3,360,596 449,506 760,057 655,503 531,069
GSS........................... 20,508,844 19,714,114 1,760,124 1,627,923 2,891,419 723,328
HYS........................... 11,699,195 8,424,289 2,333,919 2,340,052 1,143,802 1,768,446
MSS........................... 11,326,719 10,541,726 838,284 1,191,194 (135,303) 289,858
MIS+.......................... -- -- 2,049,150 -- 2,166,812 --
MMS........................... 21,463,139 27,275,583 5,295,611 7,818,118 9,723,034 (8,894,337)
NWD+.......................... -- -- 252,432 -- 573,525 --
RES........................... 35,654,917 19,577,745 1,299,737 10,988,440 3,631,861 6,437,281
RGS........................... 533,928 -- 857,568 276,177 1,134,366 260,605
RSS+.......................... -- -- 83,591 -- 110,312 --
SIS+.......................... -- -- 207,182 -- 423,614 --
TRS........................... 66,303,467 59,508,016 5,585,984 7,069,596 4,374,616 4,111,016
UTS........................... 6,101,638 4,671,192 1,559,584 966,544 1,878,542 773,360
WAA........................... 7,928,833 5,539,010 440,970 1,565,894 (400,015) 1,218,708
WGS........................... 6,127,641 7,510,766 199,740 324,862 (782,796) (1,252,245)
WGR........................... 15,058,757 13,989,946 815,222 1,725,746 (504,727) 242,250
WTR........................... 4,676,853 2,836,079 458,384 1,085,978 506,340 962,291
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Year
---------------------- ----------------------
Year Ended Year Ended
December 31, December 31,
1998 1997 1998 1997
---------- ---------- ---------- ----------
MFS REGATTA GOLD
CONTRACTS:
------------
<S> <C> <C> <C> <C>
BDS+.......................... (31,371) -- 1,182,239 --
CAS........................... (2,598,123) (2,193,608) 37,500,481 35,528,897
COS........................... (485,873) (178,705) 10,262,282 6,175,224
CGS........................... (3,042,480) (1,847,841) 51,880,765 40,709,531
EGS........................... (1,587,995) (1,064,224) 28,900,957 25,039,986
EIS+.......................... (19,611) -- 528,238 --
FCE........................... (100,672) (83,776) 2,147,348 2,159,228
FCI........................... (153,065) (75,283) 3,290,043 2,390,056
FCG........................... (332,362) (209,811) 5,214,558 4,441,911
GSS........................... (1,942,153) (1,556,521) 23,218,234 20,508,844
HYS........................... (986,099) (833,592) 14,190,817 11,699,195
MSS........................... (784,556) (696,059) 11,245,144 11,326,719
MIS+.......................... (94,444) -- 4,121,518 --
MMS........................... (7,094,698) (4,736,225) 29,387,086 21,463,139
NWD+.......................... (31,098) -- 794,859 --
RES........................... (2,032,529) (1,348,549) 38,553,986 35,654,917
RGS........................... (117,186) (2,854) 2,408,676 533,928
RSS+.......................... (3,636) -- 190,267 --
SIS+.......................... (7,882) -- 622,914 --
TRS........................... (5,162,047) (4,385,161) 71,102,020 66,303,467
UTS........................... (516,662) (309,458) 9,023,102 6,101,638
WAA........................... (393,097) (394,779) 7,576,691 7,928,833
WGS........................... (496,366) (455,742) 5,048,219 6,127,641
WGR........................... (847,123) (899,185) 14,522,129 15,058,757
WTR........................... (286,944) (207,494) 5,354,633 4,676,853
</TABLE>
+For the period May 6, 1997 (commencement of operations of Sub-Account) through
December 31, 1998.
23
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
Units Transferred
Between
Sub-Accounts
and Fixed
Units Outstanding Accumulation
Beginning of Year Units Purchased Account
----------------- ---------------- ------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
1998 1997 1998 1997 1998 1997
--------- ------ ------- ------- -------- --------
MFS REGATTA CLASSIC
CONTRACTS:
------------------------------
<S> <C> <C> <C> <C> <C> <C>
BDS+.......................... -- -- 33,440 -- 1,859 --
CAS........................... 265,497 1,892 170,863 246,247 49,860 23,978
COS........................... 160,778 9,578 98,617 107,548 29,367 46,458
CGS........................... 554,216 3,545 449,788 446,522 267,481 122,228
EGS........................... 318,028 9,744 613,049 289,836 55,590 22,223
EIS+.......................... -- -- 9,590 -- 2,523 --
FCE........................... 40,698 140 16,413 44,896 (12,814) (3,278)
FCI........................... 67,892 2,249 20,502 75,178 (3,210) (7,901)
FCG*.......................... 51,038 -- 34,300 42,039 8,318 9,735
GSS........................... 113,243 6,514 139,510 89,817 51,253 21,240
HYS........................... 155,306 8,219 224,640 120,521 (2,332) 30,370
MSS**......................... 118,243 -- 59,666 92,458 (29,055) 28,860
MIS++......................... -- -- 78,233 -- 156,319 --
MMS........................... 77,105 13,813 733,426 366,163 (366,138) (259,749)
NWD++......................... -- -- 13,601 -- 15,614 --
RES........................... 553,996 25,665 279,626 497,934 85,963 37,701
RGS#.......................... 6,085 -- 9,086 5,777 19,504 320
RSS........................... -- -- 942 -- 1,292 --
SIS+++........................ -- -- 1,726 -- 851 --
TRS........................... 951,205 40,575 681,412 859,444 155,997 66,034
UTS**......................... 77,009 -- 97,613 41,263 15,497 36,412
WAA........................... 50,531 6,448 16,112 44,701 (8,665) (150)
WGS****....................... 19,394 -- 20,516 18,266 639 2,357
WGR........................... 85,526 71 47,642 77,864 (2,579) 7,879
WTR***........................ 45,122 -- 38,335 49,398 8,687 (3,919)
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Year
---------------- ------------------
Year Ended Year Ended
December 31, December 31,
1998 1997 1998 1997
------- ------- --------- -------
MFS REGATTA CLASSIC
CONTRACTS:
------------------------------
<S> <C> <C> <C> <C>
BDS+.......................... (176) -- 35,123 --
CAS........................... (20,408) (6,620) 465,812 265,497
COS........................... (11,244) (2,806) 277,518 160,778
CGS........................... (58,292) (18,079) 1,213,193 554,216
EGS........................... (26,865) (3,775) 959,802 318,028
EIS+.......................... -- -- 12,113 --
FCE........................... (643) (1,060) 43,654 40,698
FCI........................... (1,364) (1,634) 83,820 67,892
FCG*.......................... (3,074) (736) 90,582 51,038
GSS........................... (6,696) (4,328) 297,310 113,243
HYS........................... (35,251) (3,804) 342,363 155,306
MSS**......................... (8,530) (3,075) 140,324 118,243
MIS++......................... (1,764) -- 232,788 --
MMS........................... (173,976) (43,122) 270,417 77,105
NWD++......................... (33) -- 29,182 --
RES........................... (47,296) (7,305) 872,289 553,996
RGS#.......................... (793) (12) 33,882 6,085
RSS........................... -- -- 2,234 --
SIS+++........................ -- -- 2,577 --
TRS........................... (57,322) (14,848) 1,731,292 951,205
UTS**......................... (11,983) (666) 178,136 77,009
WAA........................... (4,811) (468) 53,167 50,531
WGS****....................... (475) (1,229) 40,074 19,394
WGR........................... (9,292) (288) 121,297 85,526
WTR***........................ (891) (357) 91,253 45,122
</TABLE>
*For the period January 7, 1997 (commencement of operations of Sub-Account)
through December 31, 1997.
**For the period January 22, 1997 (commencement of operations of Sub-Account)
through December 31, 1997.
***For the period February 11, 1997 (commencement of operations of Sub-Account)
through December 31, 1997.
****For the period February 21, 1997 (commencement of operations of Sub-Account)
through December 31, 1997.
#For the period July 7, 1997 (commencement of operations of Sub-Account)
through December 31, 1997.
+For the period June 22, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
++For the period May 7, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
+++For the period June 26, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
24
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
Units Transferred
Between Sub-Accounts
Units Outstanding and Units Withdrawn,
Beginning of Fixed Accumulation Surrendered, and Units Outstanding
Period Units Purchased Account Annuitized End of Period
------------------ --------------- -------------------- ---------------- -----------------
Period Ended Period Ended Period Ended Period Ended Period Ended
December 31, December 31, December 31, December 31, December 31,
1998 1998 1998 1998 1998
------------------ --------------- -------------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA PLATINUM
CONTRACTS:
------------------------------
BDS+.......................... -- 491,319 143,015 (6,334) 628,000
CAS++......................... -- 1,489,422 215,237 (21,495) 1,683,164
COS*.......................... -- 480,199 80,801 (4,045) 556,955
CGS++......................... -- 4,380,217 1,013,330 (62,529) 5,331,018
EGS++......................... -- 1,412,976 254,376 (15,948) 1,651,404
EIS+++........................ -- 237,608 35,740 (986) 272,362
FCE+++........................ -- 67,723 4,892 (29) 72,586
FCI+++........................ -- 305,695 37,500 (4,257) 338,938
FCG*.......................... -- 167,384 34,931 (2,969) 199,346
GSS*.......................... -- 686,599 142,121 (12,618) 816,102
HYS+++........................ -- 917,703 95,977 (12,975) 1,000,705
MSS**......................... -- 180,220 35,500 (4,676) 211,044
MIS++......................... -- 2,052,872 400,450 (25,188) 2,428,134
MMS+++........................ -- 1,436,884 (492,250) (58,155) 886,479
NWD+++........................ -- 366,459 75,832 (6,113) 436,178
RES**......................... -- 1,463,540 319,544 (31,371) 1,751,713
RGS+.......................... -- 306,364 82,311 (1,595) 387,080
RSS***........................ -- 162,752 19,544 (1,165) 181,131
SIS#.......................... -- 123,410 35,045 (821) 157,634
TRS+++........................ -- 1,926,233 434,196 (41,582) 2,318,847
UTS**......................... -- 647,482 178,704 (6,537) 819,649
WAA*.......................... -- 175,049 56,466 (2,676) 228,839
WGS+++........................ -- 78,588 (2,199) (119) 76,270
WGR*.......................... -- 125,715 37,960 (819) 162,856
WTR##......................... -- 116,666 37,792 (1,601) 152,857
</TABLE>
+For the period June 30, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
++For the period June 5, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
+++For the period June 18, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
*For the period June 23, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
**For the period June 16, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
***For the period June 29, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
#For the period June 26, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
##For the period July 7, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
25
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Participants in Regatta, Regatta Gold, Regatta Classic and Regatta
Platinum Sub-Accounts and the Board of Directors of Sun Life Assurance Company
of Canada (U.S.):
We have audited the accompanying statement of condition of Sun Life of Canada
(U.S.) Bond Sub-Account, Capital Appreciation Sub-Account, Capital Opportunities
Sub-Account, Conservative Growth Sub-Account, Emerging Growth Sub-Account,
Equity Income Sub-Account, MFS/Foreign & Colonial Emerging Markets Equity
Sub-Account, International Growth Sub-Account, International Growth and Income
Sub-Account, Government Securities Sub-Account, High Yield Sub-Account, Managed
Sectors Sub-Account, Massachusetts Investors Growth Stock Sub-Account, Money
Market Sub-Account, New Discovery Sub-Account, Research Sub-Account, Research
Growth and Income Sub-Account, Research International Sub-Account, Strategic
Income Sub-Account, Total Return Sub-Account, Utilities Sub-Account, World Asset
Allocation Sub-Account, World Governments Sub-Account, World Growth Sub-Account,
and World Total Return Sub-Account of Sun Life of Canada (U.S.) Variable Account
F, (the "Sub-Accounts") as of December 31, 1998, the related statement of
operations for the year then ended and the statements of changes in net assets
for the years ended December 31, 1998 and 1997. 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 December 31, 1998 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 December 31, 1998,
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
February 4, 1999
<PAGE>
MFS REGATTA
MFS REGATTA GOLD
MFS REGATTA CLASSIC
MFS REGATTA PLATINUM
DIRECTORS AND OFFICERS OF
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, President and Director
S. CAESAR RABOY, Senior Vice President and
Deputy General Manager and Director
RICHARD B. BAILEY, Director
M. COLYER CRUM, Director
DAVID D. HORN, Director
JOHN S. LANE, Director
ANGUS A. MacNAUGHTON, Director
JOHN D. McNEIL, Director
PETER F. DEMUTH, Vice President, Chief
Counsel and Assistant Secretary
JAMES M. A. ANDERSON, Vice President, Investments
ROBERT P. VROLYK, Vice President and Actuary
L. BROCK THOMSON, Vice President
and Treasurer
ELLEN B. KING, Secretary
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
ANNUITY SERVICE MAILING ADDRESS:
Sun Life Retirement Products & Services
P.O. Box 1024, Boston, Massachusetts 02103-9986
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street, Boston, Massachusetts 02110-2875
LEGAL COUNSEL
Covington & Burling
1201 Pennsylvania Avenue, N.W.
P.O. Box 7566, Washington, D.C. 20044-7566
AUDITORS
Deloitte & Touche LLP
125 Summer Street, Boston, Massachusetts 02110-1616
This report is prepared for the general information of contract owners and
participants. It is authorized for distribution to prospective purchasers only
when preceded or accompanied by an effective prospectus.
ACCOUNT INFORMATION
For account information, please call toll free:
1-800-752-7218 anytime from a touch-tone telephone.
To speak with a customer service representative,
please call toll free: 1-800-752-7215 from 8 a.m.
to 6 p.m. Eastern time on any business day.
GOLD-2 2/99 166M
FG
[LOGO]
ANNUAL REPORT - DECEMBER 31, 1998
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
A WHOLLY-OWNED SUBSIDIARY OF
SUN LIFE OF CANADA (U.S.) HOLDINGS, INC.
