<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
JAMES A. McNULTY, III, Senior Vice President,
General Manager and Director
S. CAESAR RABOY, Director
RICHARD B. BAILEY, Director
M. COLYER CRUM, Director
DAVID D. HORN, Director
ANGUS A. MacNAUGHTON, Director
GREGORY W. GEE, Director
PETER F. DEMUTH, Vice President, Chief
Counsel and Assistant Secretary
DAVEY S. SCOON, Vice President, Finance and Treasurer
JAMES M. A. ANDERSON, Vice President, Investments
ROBERT P. VROLYK, Vice President and Actuary
L. BROCK THOMSON, Vice President
and Treasurer
ELLEN B. KING, Counsel and Secretary
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
ANNUITY SERVICE MAILING ADDRESS:
Sun Life Retirement Products & Services
P.O. Box 1024, Boston, Massachusetts 02103-9986
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street, Boston, Massachusetts 02110-2875
AUDITORS
Deloitte & Touche LLP
200 Berkeley Street, Boston, Massachusetts 02116
This report is prepared for the general information of contract owners and
participants. It is authorized for distribution to prospective purchasers only
when preceded or accompanied by an effective prospectus.
ACCOUNT INFORMATION
For account information, please call toll free:
1-800-752-7218 anytime from a touch-tone telephone.
To speak with a customer service representative,
please call toll free: 1-800-752-7215 from 8 a.m.
to 6 p.m. Eastern standard time on any business day.
GOLD-2 2/00 186M
[LOGO]
ANNUAL REPORT - DECEMBER 31, 1999
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
A WHOLLY-OWNED SUBSIDIARY OF
SUN LIFE OF CANADA (U.S.) HOLDINGS, INC.
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY
These performance results do not reflect any applicable surrender charges. Past
performance is no guarantee of future results.
<TABLE>
<CAPTION>
Unit Value
-------------------------------------- Percent Change
December 31, 1998 December 31, 1999 in Unit Value
------------------ ------------------ --------------
<S> <C> <C> <C>
MFS REGATTA CONTRACTS:
Capital Appreciation Series -- Level
1.................................... $38.0799 $49.8052 30.79%
Capital Appreciation Series -- Level
2.................................... 15.3711 20.1338 30.98
Government Securities Series -- Level
1.................................... 17.8992 17.3110 (3.29)
Government Securities Series -- Level
2.................................... 11.4928 11.1316 (3.14)
High Yield Series -- Level 1.......... 21.8836 23.0560 5.36
High Yield Series -- Level 2.......... 11.1015 11.7136 5.51
Managed Sectors Series -- Level 1..... 30.2227 55.3202 83.04
Managed Sectors Series -- Level 2..... 13.6177 24.9629 83.31
Money Market Series -- Level 1........ 13.6495 14.0901 3.23
Money Market Series -- Level 2........ 10.7906 11.1554 3.38
Total Return Series -- Level 1........ 26.5642 26.9360 1.40
Total Return Series -- Level 2........ 13.3189 13.5253 1.55
Global Governments Series -- Level
1.................................... 18.6916 17.4756 (6.51)
Global Governments Series -- Level
2.................................... 11.2037 10.4903 (6.37)
MFS REGATTA GOLD CONTRACTS:
Bond Series........................... $10.5921 $10.2650 (3.09)%
Capital Appreciation Series........... 34.7871 45.4986 30.79
Capital Opportunities Series.......... 17.2085 25.0521 45.58
Massachusetts Investors Trust
Series............................... 31.7109 33.5203 5.71
Emerging Growth Series................ 23.0408 39.9489 73.38
Equity Income Series.................. 10.4065 10.9848 5.56
Emerging Markets Equity Series........ 7.4615 11.2207 50.38
International Growth Series........... 9.5047 12.6829 33.44
International Growth and Income
Series............................... 13.1538 15.2129 15.65
Government Securities Series.......... 15.0941 14.5981 (3.29)
High Yield Series..................... 18.0207 18.9861 5.36
Managed Sectors Series................ 25.4406 46.5671 83.04
Massachusetts Investors Growth Stock
Series............................... 11.9635 16.0186 33.90
Money Market Series................... 12.2282 12.6229 3.23
New Discovery Series.................. 10.5258 16.6274 57.97
Research Series....................... 23.7119 29.0316 22.43
Research Growth and Income Series..... 13.1605 14.0374 6.66
Research International Series......... 9.3330 14.2620 52.81
Strategic Income Series............... 9.9530 12.1979 22.56
Total Return Series................... 22.1273 22.4371 1.40
Utilities Series...................... 22.0489 28.5407 29.44
Global Asset Allocation Series........ 15.8203 18.4932 16.90
Global Governments Series............. 15.2422 14.2506 (6.51)
Global Growth Series.................. 17.6676 29.1523 65.00
Global Total Return Series............ 17.1741 18.3636 6.93
Strategic Growth Series............... 10.0625* 12.1979 21.22
* Reflects unit value on the date of commencement of operations.
</TABLE>
1
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY -- continued
<TABLE>
<CAPTION>
Unit Value
-------------------------------------- Percent Change
December 31, 1998 December 31, 1999 in Unit Value
------------------ ------------------ --------------
<S> <C> <C> <C>
MFS REGATTA CLASSIC CONTRACTS:
Bond Series........................... $10.4200 $10.1232 (2.85)%
Capital Appreciation Series........... 15.2806 20.0351 31.11
Capital Opportunities Series.......... 15.9773 23.3171 45.94
Massachusetts Investors Trust
Series............................... 15.7220 16.6602 5.97
Emerging Growth Series................ 15.2416 26.4915 73.81
Equity Income Series.................. 10.6318 11.2502 5.82
Emerging Markets Equity Series........ 7.8620 11.8522 50.75
International Growth Series........... 9.8139 13.1278 33.77
International Growth and Income
Series............................... 12.7274 14.7561 15.94
Government Securities Series.......... 11.5012 11.1508 (3.05)
High Yield Series..................... 11.2212 11.8516 5.62
Managed Sectors Series................ 13.2363 24.2876 83.49
Massachusetts Investors Growth Stock
Series............................... 11.9830 16.0843 34.23
Money Market Series................... 10.7995 11.1757 3.48
New Discovery Series.................. 10.5430 16.6956 58.36
Research Series....................... 14.3354 17.5948 22.74
Research Growth and Income Series..... 12.9744 13.8731 6.93
Research International Series......... 11.0101 16.8662 53.19
Strategic Income Series............... 9.8850 11.2108 13.41
Total Return Series................... 13.1773 13.3948 1.65
Utilities Series...................... 14.8587 19.2810 29.76
Global Asset Allocation Series........ 11.5822 13.5725 17.18
Global Governments Series............. 11.4588 10.7398 (6.27)
Global Growth Series.................. 12.8959 21.3313 65.41
Global Total Return Series............ 13.0681 14.0077 7.19
Strategic Growth Series............... 10.0111* 11.2108 11.98
* Reflects unit value on the date of commencement of operations.
</TABLE>
2
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
PERFORMANCE SUMMARY -- continued
<TABLE>
<CAPTION>
Unit Value
-------------------------------------- Percent Change
December 31, 1998 December 31, 1999 in Unit Value
------------------ ------------------ --------------
<S> <C> <C> <C>
MFS REGATTA PLATINUM CONTRACTS:
Bond Series........................... $10.4201 $10.0963 (3.11)%
Capital Appreciation Series........... 11.3405 14.8295 30.77
Capital Opportunities Series.......... 10.8048 15.7265 45.55
Massachusetts Investors Trust
Series............................... 10.7939 11.4075 5.68
Emerging Growth Series................ 11.5819 20.0771 73.35
Equity Income Series.................. 10.5234 11.1059 5.54
Emerging Markets Equity Series........ 8.1616 12.2711 50.35
International Growth Series........... 9.3254 12.4412 33.41
International Growth and Income
Series............................... 10.3378 11.9538 15.63
Government Securities Series.......... 10.4116 10.0675 (3.31)
High Yield Series..................... 9.5030 10.0101 5.34
Managed Sectors Series................ 10.5861 19.3732 83.01
Massachusetts Investors Growth Stock
Series............................... 11.9094 15.9430 33.87
Money Market Series................... 10.1878 10.5145 3.21
New Discovery Series.................. 10.4124 16.4450 57.94
Research Series....................... 11.0189 13.4883 22.41
Research Growth and Income Series..... 10.3415 11.0284 6.64
Research International Series......... 9.4845 14.4906 52.78
Strategic Income Series............... 9.8713 12.0212 21.78
Total Return Series................... 10.2907 10.4327 1.38
Utilities Series...................... 10.9233 14.1367 29.42
Global Asset Allocation Series........ 9.7081 11.3461 16.87
Global Governments Series............. 11.2639 10.5290 (6.52)
Global Growth Series.................. 10.2820 16.9623 64.97
Global Total Return Series............ 10.4567 11.1787 6.90
Strategic Growth Series............... 10.0448* 12.0212 19.68
* Reflects unit value on the date of commencement of operations.
</TABLE>
3
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF CONDITION -- December 31, 1999
<TABLE>
<CAPTION>
Assets:
Shares Cost Value
Investment in MFS/Sun Life Series Trust: ----------- -------------- ---------------
<S> <C> <C> <C>
Bond Series ("BDS")..................................... 5,032,859 $ 52,850,279 $ 52,118,351
Capital Appreciation Series ("CAS")..................... 33,928,098 1,362,292,998 1,836,044,559
Capital Opportunities Series ("COS").................... 17,497,220 291,825,538 428,787,357
Massachusetts Investors Trust Series ("MIT")............ 55,246,647 1,765,382,623 2,096,532,982
Emerging Growth Series ("EGS").......................... 33,617,464 657,067,915 1,354,009,677
Equity Income Series ("EIS")............................ 3,651,313 40,120,260 40,936,224
Emerging Markets Equity
Series ("FCE").......................................... 3,316,512 30,303,485 37,877,306
International Growth Series ("FCI")..................... 5,055,030 52,026,378 66,223,206
International Growth and Income Series ("FCG").......... 5,403,493 69,153,828 80,909,710
Government Securities Series ("GSS").................... 35,624,961 457,676,007 444,492,495
High Yield Series ("HYS")............................... 34,025,742 315,462,174 306,781,605
Managed Sectors Series ("MSS").......................... 12,025,505 345,925,544 630,396,157
Massachusetts Investors Growth Stock Series ("MIS")..... 32,967,162 416,945,277 531,800,703
Money Market Series ("MMS")............................. 454,908,455 454,908,455 454,908,455
New Discovery Series ("NWD")............................ 3,710,841 41,511,925 62,699,760
Research Series ("RES")................................. 43,297,368 826,432,303 1,195,623,218
Research Growth and Income Series ("RGS")............... 5,206,053 69,608,597 75,161,248
Research International Series ("RSS")................... 2,045,281 23,798,520 29,839,876
Strategic Income Series ("SIS")......................... 1,895,901 18,979,780 19,443,594
Total Return Series ("TRS")............................. 93,947,109 1,777,124,893 1,762,378,532
Utilities Series ("UTS")................................ 18,760,767 294,942,640 372,198,015
Global Asset Allocation Series ("GAA").................. 7,496,242 107,654,207 121,373,291
Global Governments Series ("GGS")....................... 6,514,585 72,392,490 66,878,866
Global Growth Series ("GGR")............................ 16,712,838 242,007,044 420,505,813
Global Total Return Series ("GTR")...................... 6,153,538 90,512,865 102,431,102
Strategic Growth Series ("SGS")......................... 755,126 8,085,971 9,158,291
-------------- ---------------
$9,884,991,996 $12,599,510,393
==============
Liability:
Payable to Sponsor...................................................................... (788,789)
---------------
Net Assets........................................................................ $12,598,721,604
===============
</TABLE>
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
------------------------------------- Variable
Units Unit Value Value Annuities Total
NET ASSETS APPLICABLE TO CONTRACT OWNERS: ---------- ---------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA CONTRACTS:
CAS -- Level 1......................... 22,958 $49.8052 $ 1,154,572 $ 82,807 $ 1,237,379
CAS -- Level 2......................... 7,847,274 20.1338 157,816,394 969,593 158,785,987
GSS -- Level 1......................... -- 17.3110 13,647 60,353 74,000
GSS -- Level 2......................... 2,795,724 11.1316 31,105,411 89,576 31,194,987
HYS -- Level 1......................... 165 23.0560 13,811 3,624 17,435
HYS -- Level 2......................... 1,075,336 11.7136 12,598,381 70,200 12,668,581
MSS -- Level 1......................... 5,113 55.3202 400,698 -- 400,698
MSS -- Level 2......................... 2,678,028 24.9629 66,652,102 199,948 66,852,050
MMS -- Level 1......................... 16,140 14.0901 423,113 21,042 444,155
MMS -- Level 2......................... 2,672,617 11.1554 29,564,107 218,878 29,782,985
TRS -- Level 1......................... 31,742 26.9360 870,926 26,274 897,200
TRS -- Level 2......................... 9,929,414 13.5253 134,236,171 1,163,409 135,399,580
GGS -- Level 1......................... 495 17.4756 20,251 -- 20,251
GGS -- Level 2......................... 630,136 10.4903 6,597,561 77,362 6,674,923
------------ ---------- ------------
$441,467,145 $2,983,066 $444,450,211
------------ ---------- ------------
</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, 1999 -- continued
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
---------------------------------------- Variable
Units Unit Value Value Annuities Total
NET ASSETS APPLICABLE TO CONTRACT OWNERS (CONTINUED): ---------- ---------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA GOLD CONTRACTS:
BDS............................................. 2,085,322 $10.2650 $ 21,422,675 $ 196,994 $ 21,619,669
CAS............................................. 32,846,090 45.4986 1,494,201,625 8,076,446 1,502,278,071
COS............................................. 12,845,672 25.0521 321,822,832 370,891 322,193,723
MIT............................................. 49,201,899 33.5203 1,649,205,165 5,518,991 1,654,724,156
EGS............................................. 28,061,821 39.9489 1,121,085,030 2,395,699 1,123,480,729
EIS............................................. 1,301,166 10.9848 14,292,791 -- 14,292,791
FCE............................................. 2,761,034 11.2207 30,978,033 86,552 31,064,585
FCI............................................. 3,187,799 12.6829 40,432,352 49,086 40,481,438
FCG............................................. 4,509,596 15.2129 68,611,598 107,072 68,718,670
GSS............................................. 23,230,411 14.5981 339,182,656 1,242,278 340,424,934
HYS............................................. 12,537,119 18.9861 238,076,354 754,623 238,830,977
MSS............................................. 11,032,465 46.5671 513,184,584 1,768,278 514,952,862
MIS............................................. 11,985,320 16.0186 191,981,488 406,236 192,387,724
MMS............................................. 28,447,843 12.6229 359,153,095 1,693,460 360,846,555
NWD............................................. 1,599,416 16.6274 26,593,488 92,786 26,686,274
RES............................................. 35,935,779 29.0316 1,042,604,864 3,075,481 1,045,680,345
RGS............................................. 3,153,242 14.0374 44,265,738 118,955 44,384,693
RSS............................................. 1,114,581 14.2620 15,897,340 -- 15,897,340
SIS............................................. 892,490 12.1979 9,166,122 -- 9,166,122
TRS............................................. 62,923,966 22.4371 1,411,666,379 4,695,525 1,416,361,904
UTS............................................. 9,588,408 28.5407 273,652,266 1,182,207 274,834,473
GAA............................................. 6,188,330 18.4932 114,469,945 607,231 115,077,176
GGS............................................. 3,941,088 14.2506 56,177,676 377,322 56,554,998
GGR............................................. 13,513,835 29.1523 393,951,878 1,153,770 395,105,648
GTR............................................. 4,907,545 18.3636 90,121,960 555,833 90,677,793
SGS............................................. 558,856 12.1979 6,814,708 -- 6,814,708
-------------- ----------- --------------
$9,889,012,642 $34,525,716 $9,923,538,358
-------------- ----------- --------------
</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, 1999 -- continued
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
------------------------------------- Variable
Units Unit Value Value Annuities Total
NET ASSETS APPLICABLE TO CONTRACT OWNERS (CONTINUED): --------- ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA CLASSIC CONTRACTS:
BDS................................................. 48,210 $10.1232 $ 487,954 $-- $ 487,954
CAS................................................. 643,838 20.0351 12,896,639 -- 12,896,639
COS................................................. 450,750 23.3171 10,503,243 -- 10,503,243
MIT................................................. 1,467,541 16.6602 24,441,075 572 24,441,647
EGS................................................. 1,130,669 26.4915 29,945,574 -- 29,945,574
EIS................................................. 74,460 11.2502 837,571 -- 837,571
FCE................................................. 72,781 11.8522 862,731 -- 862,731
FCI................................................. 98,698 13.1278 1,294,861 -- 1,294,861
FCG................................................. 89,652 14.7561 1,320,980 -- 1,320,980
GSS................................................. 282,054 11.1508 3,151,398 -- 3,151,398
HYS................................................. 312,392 11.8516 3,700,989 -- 3,700,989
MSS................................................. 305,995 24.2876 7,430,811 -- 7,430,811
MIS................................................. 501,609 16.0843 8,069,796 -- 8,069,796
MMS................................................. 1,078,121 11.1757 12,051,351 -- 12,051,351
NWD................................................. 99,057 16.6956 1,654,206 -- 1,654,206
RES................................................. 963,271 17.5948 16,945,380 -- 16,945,380
RGS................................................. 74,418 13.8731 1,032,103 -- 1,032,103
RSS................................................. 28,986 16.8662 488,903 -- 488,903
SIS................................................. 22,950 11.2108 234,390 -- 234,390
TRS................................................. 1,987,855 13.3948 26,626,717 1,085 26,627,802
UTS................................................. 356,269 19.2810 6,862,785 -- 6,862,785
GAA................................................. 43,343 13.5725 588,958 -- 588,958
GGS................................................. 42,362 10.7398 454,905 -- 454,905
GGR................................................. 135,881 21.3313 2,897,127 -- 2,897,127
GTR................................................. 118,027 14.0077 1,652,891 597 1,653,488
SGS................................................. 5,701 11.2108 63,889 -- 63,889
------------ ------ ------------
$176,497,227 $2,254 $176,499,481
------------ ------ ------------
</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, 1999 -- continued
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
----------------------------------------- Variable
Units Unit Value Value Annuities Total
NET ASSETS APPLICABLE TO CONTRACT OWNERS (CONTINUED): ---------- ---------- --------------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
MFS REGATTA PLATINUM CONTRACTS:
BDS............................................ 2,970,448 $10.0963 $ 29,994,338 $ 6,370 $ 30,000,708
CAS............................................ 10,770,738 14.8295 159,713,722 855,329 160,569,051
COS............................................ 6,088,167 15.7265 95,743,651 288,540 96,032,191
MIT............................................ 36,443,681 11.4075 415,739,367 1,814,868 417,554,235
EGS............................................ 9,952,208 20.0771 199,806,631 871,934 200,678,565
EIS............................................ 2,322,545 11.1059 25,793,127 12,558 25,805,685
FCE............................................ 471,834 12.2711 5,788,888 156,525 5,945,413
FCI............................................ 1,960,439 12.4412 24,389,553 44,137 24,433,690
FCG............................................ 904,331 11.9538 10,809,507 47,556 10,857,063
GSS............................................ 6,917,529 10.0675 69,644,205 151,558 69,795,763
HYS............................................ 5,126,512 10.0101 51,279,436 228,601 51,508,037
MSS............................................ 2,096,399 19.3732 40,613,386 30,902 40,644,288
MIS............................................ 20,741,206 15.9430 330,672,742 615,728 331,288,470
MMS............................................ 4,848,739 10.5145 50,985,070 534,768 51,519,838
NWD............................................ 2,064,540 16.4450 33,951,877 358,408 34,310,285
RES............................................ 9,822,632 13.4883 132,488,128 436,882 132,925,010
RGS............................................ 2,692,647 11.0284 29,696,208 46,181 29,742,389
RSS............................................ 914,188 14.4906 13,247,136 206,497 13,453,633
SIS............................................ 987,192 12.0212 10,043,082 -- 10,043,082
TRS............................................ 17,437,345 10.4327 181,919,827 855,857 182,775,684
UTS............................................ 6,397,913 14.1367 90,458,930 61,616 90,520,546
GAA............................................ 502,791 11.3461 5,704,516 -- 5,704,516
GGS............................................ 301,714 10.5290 3,174,978 20,740 3,195,718
GGR............................................ 1,328,571 16.9623 22,535,111 -- 22,535,111
GTR............................................ 901,334 11.1787 10,076,998 37,891 10,114,889
SGS............................................ 189,701 12.0212 2,279,694 -- 2,279,694
--------------- ----------- ---------------
$ 2,046,550,108 $ 7,683,446 $ 2,054,233,554
--------------- ----------- ---------------
Net Assets................................................................ $12,553,527,122 $45,194,482 $12,598,721,604
=============== =========== ===============
</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, 1999
<TABLE>
<CAPTION>
BDS CAS COS MIT EGS EIS
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.......... $ 456,185 $ 165,042,350 $ 5,266,720 $ 142,902,581 $ 12,001,599 $ 47,820
Mortality and expense risk
charges......................... (464,791) (18,362,496) (3,268,957) (23,586,223) (10,306,327) (282,553)
Distribution expense charges..... -- (5,941) -- -- -- --
Administrative expense charges... (55,942) (2,200,044) (394,335) (2,836,395) (1,242,331) (34,088)
----------- ------------- ------------ ------------- ------------ -----------
Net investment income
(loss)...................... $ (64,548) $ 144,473,869 $ 1,603,428 $ 116,479,963 $ 452,941 $ (268,821)
----------- ------------- ------------ ------------- ------------ -----------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 9,550,320 $ 450,572,346 $ 29,745,130 $ 233,601,157 $137,754,613 $ 9,351,165
Cost of investments sold....... (9,570,915) (344,857,604) (19,530,316) (117,395,546) (77,682,913) (8,400,487)
----------- ------------- ------------ ------------- ------------ -----------
Net realized gains
(losses).................... $ (20,595) $ 105,714,742 $ 10,214,814 $ 116,205,611 $ 60,071,700 $ 950,678
----------- ------------- ------------ ------------- ------------ -----------
Net unrealized appreciation
(depreciation) on investments:
End of year.................... $ (731,928) $ 473,751,561 $136,961,819 $ 331,150,359 $696,941,762 $ 815,964
Beginning of year.............. 286,002 287,338,195 32,482,750 452,834,707 194,893,156 595,356
----------- ------------- ------------ ------------- ------------ -----------
Change in unrealized
appreciation
(depreciation).............. $(1,017,930) $ 186,413,366 $104,479,069 $(121,684,348) $502,048,606 $ 220,608
----------- ------------- ------------ ------------- ------------ -----------
Realized and unrealized gains
(losses)...................... $(1,038,525) $ 292,128,108 $114,693,883 $ (5,478,737) $562,120,306 $ 1,171,286
----------- ------------- ------------ ------------- ------------ -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $(1,103,073) $ 436,601,977 $116,297,311 $ 111,001,226 $562,573,247 $ 902,465
=========== ============= ============ ============= ============ ===========
</TABLE>
See notes to financial statements
8
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Year Ended December 31, 1999 -- continued
<TABLE>
<CAPTION>
FCE FCI FCG GSS
Sub-Account Sub-Account Sub-Account Sub-Account
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ -- $ 216,260 $ 2,184,611 $ 21,618,169
Mortality and expense risk
charges......................... (298,005) (549,216) (885,975) (5,311,042)
Distribution expense charges..... -- -- -- (1,545)
Administrative expense charges... (35,925) (66,290) (106,818) (636,791)
------------ ------------ ------------- -------------
Net investment income
(loss)...................... $ (333,930) $ (399,246) $ 1,191,818 $ 15,668,791
------------ ------------ ------------- -------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains(losses) on
investment transactions:
Proceeds from sales............ $ 13,945,514 $ 30,960,149 $ 106,011,361 $ 115,563,467
Cost of investments sold....... (15,674,700) (29,356,563) (100,713,204) (118,246,571)
------------ ------------ ------------- -------------
Net realized gains
(losses).................... $ (1,729,186) $ 1,603,586 $ 5,298,157 $ (2,683,104)
------------ ------------ ------------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of year.................... $ 7,573,821 $ 14,196,828 $ 11,755,882 $ (13,183,512)
Beginning of year.............. (5,357,496) (519,445) 6,495,614 14,106,863
------------ ------------ ------------- -------------
Change in unrealized
appreciation
(depreciation).............. $ 12,931,317 $ 14,716,273 $ 5,260,268 $ (27,290,375)
------------ ------------ ------------- -------------
Realized and unrealized gains
(losses)...................... $ 11,202,131 $ 16,319,859 $ 10,558,425 $ (29,973,479)
------------ ------------ ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 10,868,201 $ 15,920,613 $ 11,750,243 $ (14,304,688)
============ ============ ============= =============
<CAPTION>
HYS MSS
Sub-Account Sub-Account
------------- --------------
<S> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 24,714,357 $ --
Mortality and expense risk
charges......................... (3,694,316) (4,726,197)
Distribution expense charges..... (565) (1,871)
Administrative expense charges... (443,843) (566,272)
------------- ------------
Net investment income
(loss)...................... $ 20,575,633 $ (5,294,340)
------------- ------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains(losses) on
investment transactions:
Proceeds from sales............ $ 131,860,091 $ 88,894,001
Cost of investments sold....... (135,709,620) (72,940,290)
------------- ------------
Net realized gains
(losses).................... $ (3,849,529) $ 15,953,711
------------- ------------
Net unrealized appreciation
(depreciation) on investments:
End of year.................... $ (8,680,569) $284,470,613
Beginning of year.............. (7,980,287) 16,729,347
------------- ------------
Change in unrealized
appreciation
(depreciation).............. $ (700,282) $267,741,266
------------- ------------
Realized and unrealized gains
(losses)...................... $ (4,549,811) $283,694,977
------------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 16,025,822 $278,400,637
============= ============
</TABLE>
See notes to financial statements
9
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Year Ended December 31, 1999 -- continued
<TABLE>
<CAPTION>
MIS MMS NWD RES
Sub-Account Sub-Account Sub-Account Sub-Account
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital
gain distributions
received.................... $ 3,086,853 $ 20,077,131 $ 133,721 $ 33,877,219
Mortality and expense risk
charges..................... (3,219,139) (5,364,185) (334,655) (12,526,374)
Distribution expense
charges..................... -- (1,353) -- --
Administrative expense
charges..................... (387,637) (644,685) (40,408) (1,507,388)
------------ ------------- ----------- ------------
Net investment income
(loss).................. $ (519,923) $ 14,066,908 $ (241,342) $ 19,843,457
------------ ------------- ----------- ------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales........ $ 28,678,591 $ 681,042,524 $ 7,761,195 $126,485,068
Cost of investments sold... (22,458,189) (681,042,524) (6,405,814) (74,939,328)
------------ ------------- ----------- ------------
Net realized gains
(losses)................ $ 6,220,402 $ -- $ 1,355,381 $ 51,545,740
------------ ------------- ----------- ------------
Net unrealized appreciation
(depreciation) on
investments:
End of year................ $114,855,426 $ -- $21,187,835 $369,190,915
Beginning of year.......... 11,412,175 -- 1,504,013 222,195,462
------------ ------------- ----------- ------------
Change in unrealized
appreciation
(depreciation).......... $103,443,251 $ -- $19,683,822 $146,995,453
------------ ------------- ----------- ------------
Realized and unrealized
gains (losses)............ $109,663,653 $ -- $21,039,203 $198,541,193
------------ ------------- ----------- ------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS........ $109,143,730 $ 14,066,908 $20,797,861 $218,384,650
============ ============= =========== ============
<CAPTION>
RGS RSS SIS
Sub-Account Sub-Account Sub-Account
------------ ------------ -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital
gain distributions
received................... $ 184,713 $ 1,911 $ 271,924
Mortality and expense risk
charges.................... (718,747) (128,399) (168,321)
Distribution expense
charges.................... -- -- --
Administrative expense
charges.................... (86,537) (15,455) (20,234)
------------ ------------ -----------
Net investment income
(loss)................. $ (620,571) $ (141,943) $ 83,369
------------ ------------ -----------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales....... $ 13,728,018 $ 13,408,569 $ 2,528,947
Cost of investments sold.. (11,746,493) (11,896,704) (2,439,032)
------------ ------------ -----------
Net realized gains
(losses)............... $ 1,981,525 $ 1,511,865 $ 89,915
------------ ------------ -----------
Net unrealized appreciation
(depreciation) on
investments:
End of year............... $ 5,552,651 $ 6,041,356 $ 463,814
Beginning of year......... 3,487,391 126,682 217,175
------------ ------------ -----------
Change in unrealized
appreciation
(depreciation)......... $ 2,065,260 $ 5,914,674 $ 246,639
------------ ------------ -----------
Realized and unrealized
gains (losses)........... $ 4,046,785 $ 7,426,539 $ 336,554
------------ ------------ -----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS....... $ 3,426,214 $ 7,284,596 $ 419,923
============ ============ ===========
</TABLE>
See notes to financial statements
10
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENT OF OPERATIONS -- Year Ended December 31, 1999 -- continued
<TABLE>
<CAPTION>
TRS UTS GAA GGS
Sub-Account Sub-Account Sub-Account Sub-Account
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 269,625,863 $ 28,611,367 $ 6,409,041 $ 9,343,075
Mortality and expense risk
charges......................... (22,286,255) (3,306,043) (1,427,773) (953,326)
Distribution expense charges..... (10,220) -- -- (422)
Administrative expense charges... (2,671,814) (397,938) (171,521) (114,118)
------------- ------------ ------------ ------------
Net investment income
(loss)...................... $ 244,657,574 $ 24,907,386 $ 4,809,747 $ 8,275,209
------------- ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 357,231,982 $ 34,366,900 $ 29,474,177 $ 26,696,851
Cost of investments sold....... (313,675,798) (23,665,238) (26,588,874) (28,476,289)
------------- ------------ ------------ ------------
Net realized gains
(losses).................... $ 43,556,184 $ 10,701,662 $ 2,885,303 $ (1,779,438)
------------- ------------ ------------ ------------
Net unrealized appreciation
(depreciation) on investments:
End of year.................... $ (14,746,361) $ 77,255,375 $ 13,719,084 $ (5,513,624)
Beginning of year.............. 247,870,707 34,293,510 3,446,679 6,569,807
------------- ------------ ------------ ------------
Change in unrealized
appreciation
(depreciation).............. $(262,617,068) $ 42,961,865 $ 10,272,405 $(12,083,431)
------------- ------------ ------------ ------------
Realized and unrealized gains
(losses)...................... $(219,060,884) $ 53,663,527 $ 13,157,708 $(13,862,869)
------------- ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $ 25,596,690 $ 78,570,913 $ 17,967,455 $ (5,587,660)
============= ============ ============ ============
<CAPTION>
GGR GTR SGS
Sub-Account Sub-Account Sub-Account(b)
------------ -------------- --------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 10,725,752 $ 7,230,240 $ --
Mortality and expense risk
charges......................... (3,549,051) (1,188,320) (7,136)
Distribution expense charges..... -- -- --
Administrative expense charges... (426,441) (143,007) (858)
------------ ------------ ----------
Net investment income
(loss)...................... $ 6,750,260 $ 5,898,913 $ (7,994)
------------ ------------ ----------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 44,112,521 $ 16,770,599 $ 151,707
Cost of investments sold....... (31,638,209) (13,273,072) (493,571)
------------ ------------ ----------
Net realized gains
(losses).................... $ 12,474,312 $ 3,497,527 $ (341,864)
------------ ------------ ----------
Net unrealized appreciation
(depreciation) on investments:
End of year.................... $178,498,769 $ 11,918,237 $1,072,320
Beginning of year.............. 33,369,072 14,614,468 --
------------ ------------ ----------
Change in unrealized
appreciation
(depreciation).............. $145,129,697 $ (2,696,231) $1,072,320
------------ ------------ ----------
Realized and unrealized gains
(losses)...................... $157,604,009 $ 801,296 $ 730,456
------------ ------------ ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS................... $164,354,269 $ 6,700,209 $ 722,462
============ ============ ==========
</TABLE>
(b) For the period November 5, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
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 Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998(a) 1999 1998 1999 1998
------------- ------------- -------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)....................... $ (64,548) $ (82,271) $ 144,473,869 $ 128,215,244 $ 1,603,428 $ 3,637,491
Net realized gains (losses)... (20,595) 216,410 105,714,742 66,702,495 10,214,814 5,170,487
Net unrealized gains
(losses)..................... (1,017,930) 286,002 186,413,366 121,369,200 104,479,069 20,631,668
----------- ----------- -------------- -------------- ------------ ------------
Increase (Decrease) in net
assets from operations... $(1,103,073) $ 420,141 $ 436,601,977 $ 316,286,939 $116,297,311 $ 29,439,646
----------- ----------- -------------- -------------- ------------ ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................... $11,283,792 $ 9,875,456 $ 76,869,793 $ 107,933,141 $ 42,581,763 $ 38,230,487
Net transfers between
Sub-Accounts and Fixed
Account.................... 26,002,672 9,534,568 2,132,992 47,848,492 100,363,903 40,051,430
Withdrawals, surrenders,
annuitizations and contract
charges.................... (3,714,192) (395,676) (174,746,999) (114,794,853) (18,079,962) (7,541,790)
----------- ----------- -------------- -------------- ------------ ------------
Net accumulation
activity................. $33,572,272 $19,014,348 $ (95,744,214) $ 40,986,780 $124,865,704 $ 70,740,127
----------- ----------- -------------- -------------- ------------ ------------
Annuitization Activity:
Annuitizations.............. $ 79,698 $ 164,170 $ 1,893,718 $ 1,220,067 $ 359,014 $ 142,386
Annuity payments and
contract charges........... (25,302) (3,903) (1,271,221) (1,025,009) (143,073) (46,545)
Net Transfers between
Sub-Accounts............... -- -- 109,831 (41,318) 33,759 25,440
Adjustments to annuity
reserves................... 2,648 (12,668) (272,714) (88,123) (43,544) (10,400)
----------- ----------- -------------- -------------- ------------ ------------
Net annuitization
activity................. $ 57,044 $ 147,599 $ 459,614 $ 65,617 $ 206,156 $ 110,881
----------- ----------- -------------- -------------- ------------ ------------
Increase (Decrease) in net
assets from contract owner
transactions................. $33,629,316 $19,161,947 $ (95,284,600) $ 41,052,397 $125,071,860 $ 70,851,008
----------- ----------- -------------- -------------- ------------ ------------
Increase (Decrease) in net
assets..................... $32,526,243 $19,582,088 $ 341,317,377 $ 357,339,336 $241,369,171 $100,290,654
NET ASSETS:
Beginning of year............. 19,582,088 -- 1,494,449,750 1,137,110,414 187,359,986 87,069,332
----------- ----------- -------------- -------------- ------------ ------------
End of year................... $52,108,331 $19,582,088 $1,835,767,127 $1,494,449,750 $428,729,157 $187,359,986
=========== =========== ============== ============== ============ ============
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
12
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MIT EGS EIS
Sub-Account Sub-Account Sub-Account
------------------------------- ----------------------------- ---------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998(a)
-------------- -------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).... $ 116,479,963 $ 74,447,584 $ 452,941 $ 11,234,121 $ (268,821) $ (31,884)
Net realized gains (losses)..... 116,205,611 33,652,751 60,071,700 22,519,902 950,678 (117,486)
Net unrealized gains (losses)... (121,684,348) 167,450,974 502,048,606 124,900,453 220,608 595,356
-------------- -------------- -------------- ------------ ----------- ----------
Increase (Decrease) in net
assets from operations..... $ 111,001,226 $ 275,551,309 $ 562,573,247 $158,654,476 $ 902,465 $ 445,986
-------------- -------------- -------------- ------------ ----------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.... $ 200,798,865 $ 265,107,890 $ 72,378,390 $ 90,838,283 $11,769,375 $4,758,335
Net transfers between
Sub-Accounts and Fixed
Account...................... 215,949,849 206,082,223 80,609,004 40,488,353 22,083,804 3,493,264
Withdrawals, surrenders,
annuitizations and contract
charges...................... (159,633,917) (88,307,981) (63,348,442) (30,769,813) (2,323,339) (205,828)
-------------- -------------- -------------- ------------ ----------- ----------
Net accumulation activity... $ 257,114,797 $ 382,882,132 $ 89,638,952 $100,556,823 $31,529,840 $8,045,771
-------------- -------------- -------------- ------------ ----------- ----------
Annuitization Activity:
Annuitizations................ $ 2,805,581 $ 2,012,633 $ 1,166,495 $ 453,478 $ 12,343 $ --
Annuity payments and contract
charges...................... (993,419) (713,563) (240,170) (113,219) (181) --
Net Transfers between
Sub-Accounts................. (31,426) (116,539) 24,221 (5,495) -- --
Adjustments to annuity
reserves..................... (68,461) 265,082 (5,370) 128,245 (177) --
-------------- -------------- -------------- ------------ ----------- ----------
Net annuitization
activity................... $ 1,712,275 $ 1,447,613 $ 945,176 $ 463,009 $ 11,985 $ --
-------------- -------------- -------------- ------------ ----------- ----------
Increase (Decrease) in net
assets from contract owner
transactions................... $ 258,827,072 $ 384,329,745 $ 90,584,128 $101,019,832 $31,541,825 $8,045,771
-------------- -------------- -------------- ------------ ----------- ----------
Increase (Decrease) in net
assets......................... $ 369,828,298 $ 659,881,054 $ 653,157,375 $259,674,308 $32,444,290 $8,491,757
NET ASSETS:
Beginning of year............... 1,726,891,740 1,067,010,686 700,947,493 441,273,185 8,491,757 --
-------------- -------------- -------------- ------------ ----------- ----------
End of year..................... $2,096,720,038 $1,726,891,740 $1,354,104,868 $700,947,493 $40,936,047 $8,491,757
============== ============== ============== ============ =========== ==========
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
13
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
FCE FCI FCG
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (333,930) $ 467,717 $ (399,246) $ (101,894) $ 1,191,818 $ 1,045,909
Net realized gains (losses)........... (1,729,186) (4,423,657) 1,603,586 (134,106) 5,298,157 5,611,522
Net unrealized gains (losses)......... 12,931,317 (3,684,076) 14,716,273 (101,433) 5,260,268 4,069,821
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets
from operations.................. $10,868,201 $(7,640,016) $15,920,613 $ (337,433) $11,750,243 $10,727,252
----------- ----------- ----------- ----------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 2,257,666 $ 2,734,886 $ 7,721,195 $ 8,231,578 $ 4,415,080 $ 7,721,923
Net transfers between Sub-Accounts
and Fixed Account.................. 10,148,747 (1,032,098) 10,540,394 5,579,377 (1,761,772) 8,246,837
Withdrawals, surrenders,
annuitizations and contract
charges............................ (2,575,449) (897,534) (3,292,901) (1,479,723) (5,447,333) (4,121,150)
----------- ----------- ----------- ----------- ----------- -----------
Net accumulation activity......... $ 9,830,964 $ 805,254 $14,968,688 $12,331,232 $(2,794,025) $11,847,610
----------- ----------- ----------- ----------- ----------- -----------
Annuitization Activity:
Annuitizations...................... $ 154,638 $ 3,586 $ 39,173 $ 1,716 $ 59,613 $ 34,551
Annuity payments and contract
charges............................ (8,635) (7,084) (9,967) (5,621) (14,579) (28,601)
Net transfers between
Sub-Accounts....................... 54,153 -- -- -- -- (17,030)
Adjustments to annuity reserves..... (3,330) 218 (15,216) 2,415 (4,391) (10,148)
----------- ----------- ----------- ----------- ----------- -----------
Net annuitization activity........ $ 196,826 $ (3,280) $ 13,990 $ (1,490) $ 40,643 $ (21,228)
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets from
contract owner transactions.......... $10,027,790 $ 801,974 $14,982,678 $12,329,742 $(2,753,382) $11,826,382
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets..... $20,895,991 $(6,838,042) $30,903,291 $11,992,309 $ 8,996,861 $22,553,634
NET ASSETS:
Beginning of year..................... 16,976,738 23,814,780 35,306,698 23,314,389 71,899,852 49,346,218
----------- ----------- ----------- ----------- ----------- -----------
End of year........................... $37,872,729 $16,976,738 $66,209,989 $35,306,698 $80,896,713 $71,899,852
=========== =========== =========== =========== =========== ===========
</TABLE>
See notes to financial statements
14
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GSS HYS MSS
Sub-Account Sub-Account Sub-Account
------------------------------- ------------------------------- -------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
---------------- ------------ ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................... $ 15,668,791 $ 15,055,335 $ 20,575,633 $ 13,760,883 $ (5,294,340) $ 45,005,946
Net realized gains
(losses)................. (2,683,104) 7,944,827 (3,849,529) 4,744,016 15,953,711 11,481,102
Net unrealized gains
(losses)................. (27,290,375) 2,813,782 (700,282) (20,640,207) 267,741,266 (23,796,460)
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in
net assets from
operations........... $(14,304,688) $ 25,813,944 $ 16,025,822 $ (2,135,308) $278,400,637 $ 32,690,588
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received............... $ 26,767,871 $ 33,941,912 $ 20,195,648 $ 54,795,963 $ 16,920,035 $ 22,720,393
Net transfers between
Sub-Accounts and Fixed
Account................ 91,170,433 49,410,266 20,734,522 20,587,340 52,096,752 (5,210,223)
Withdrawals, surrenders,
annuitizations and
contract charges....... (59,337,154) (40,854,521) (36,583,190) (24,841,987) (51,120,379) (28,997,564)
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation
activity............. $ 58,601,150 $ 42,497,657 $ 4,346,980 $ 50,541,316 $ 17,896,408 $(11,487,394)
------------ ------------ ------------ ------------ ------------ ------------
Annuitization Activity:
Annuitizations.......... $ 665,654 $ 1,080,791 $ 333,040 $ 514,021 $ 135,661 $ 360,666
Annuity payments and
contract charges....... (452,725) (563,274) (295,312) (301,855) (320,573) (278,169)
Net transfers between
Sub-Accounts........... (3,904) (10,317) -- -- 118,980 (6,870)
Adjustments to annuity
reserves............... (4,610) 17,162 (22,546) 44,449 (51,415) (3,336)
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization
activity............. $ 204,415 $ 524,362 $ 15,182 $ 256,615 $ (117,347) $ 72,291
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net
assets from contract
owner transactions....... $ 58,805,565 $ 43,022,019 $ 4,362,162 $ 50,797,931 $ 17,779,061 $(11,415,103)
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in
net assets............. $ 44,500,877 $ 68,835,963 $ 20,387,984 $ 48,662,623 $296,179,698 $ 21,275,485
NET ASSETS:
Beginning of year......... 400,140,205 331,304,242 286,338,035 237,675,412 334,101,011 312,825,526
------------ ------------ ------------ ------------ ------------ ------------
End of year............... $444,641,082 $400,140,205 $306,726,019 $286,338,035 $630,280,709 $334,101,011
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements
15
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MIS MMS NWD
Sub-Account Sub-Account Sub-Account
----------------------------- ----------------------------- -----------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998(a) 1999 1998 1999 1998(a)
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).... $ (519,923) $ (277,915) $ 14,066,908 $ 12,464,454 $ (241,342) $ (55,628)
Net realized gains (losses)..... 6,220,402 290,620 -- -- 1,355,381 (77,926)
Net unrealized gains (losses)... 103,443,251 11,412,175 -- -- 19,683,822 1,504,013
------------ ----------- ------------- ------------- ----------- -----------
Increase (Decrease) in net
assets from operations..... $109,143,730 $11,424,880 $ 14,066,908 $ 12,464,454 $20,797,861 $ 1,370,459
------------ ----------- ------------- ------------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.... $137,436,213 $42,898,409 $ 77,465,420 $ 84,539,955 $10,051,271 $ 5,928,260
Net transfers between
Sub-Accounts and Fixed
Account...................... 223,731,514 27,944,745 176,379,832 205,348,459 20,319,479 6,269,724
Withdrawals, surrenders,
annuitizations and contract
charges...................... (20,457,443) (1,223,987) (230,737,769) (180,586,976) (2,113,261) (345,722)
------------ ----------- ------------- ------------- ----------- -----------
Net accumulation activity... $340,710,284 $69,619,167 $ 23,107,483 $ 109,301,438 $28,257,489 $11,852,262
------------ ----------- ------------- ------------- ----------- -----------
Annuitization Activity:
Annuitizations................ $ 755,518 $ 158,201 $ 1,593,879 $ 1,223,366 $ 339,593 $ 59,889
Annuity payments and contract
charges...................... (48,148) (10,253) (347,973) (267,886) (15,934) (3,118)
Net transfers between
Sub-Accounts................. 47,324 -- (646,987) (4,847) 41,259 --
Adjustments to annuity
reserves..................... (53,623) (1,090) (33,773) (38,667) (46,627) (2,368)
------------ ----------- ------------- ------------- ----------- -----------
Net annuitization
activity................... $ 701,071 $ 146,858 $ 565,146 $ 911,966 $ 318,291 $ 54,403
------------ ----------- ------------- ------------- ----------- -----------
Increase (Decrease) in net
assets from contract owner
transactions................... $341,411,355 $69,766,025 $ 23,672,629 $ 110,213,404 $28,575,780 $11,906,665
------------ ----------- ------------- ------------- ----------- -----------
Increase (Decrease) in net
assets....................... $450,555,085 $81,190,905 $ 37,739,537 $ 122,677,858 $49,373,641 $13,277,124
NET ASSETS:
Beginning of year............... 81,190,905 -- 416,905,347 294,227,489 13,277,124 --
------------ ----------- ------------- ------------- ----------- -----------
End of year..................... $531,745,990 $81,190,905 $ 454,644,884 $ 416,905,347 $62,650,765 $13,277,124
============ =========== ============= ============= =========== ===========
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
16
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RES RGS RSS
Sub-Account Sub-Account Sub-Account
----------------------------- --------------------------- ---------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998(a)
-------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ 19,843,457 $ 22,892,997 $ (620,571) $ (196,955) $ (141,943) $ (15,398)
Net realized gains (losses)......... 51,545,740 21,973,914 1,981,525 513,010 1,511,865 (94,970)
Net unrealized gains (losses)....... 146,995,453 110,904,687 2,065,260 3,223,975 5,914,674 126,682
-------------- ------------ ----------- ----------- ----------- ----------
Increase (Decrease) in net
assets from operations......... $ 218,384,650 $155,771,598 $ 3,426,214 $ 3,540,030 $ 7,284,596 $ 16,314
-------------- ------------ ----------- ----------- ----------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received........ $ 60,172,716 $103,921,694 $12,282,216 $13,378,132 $ 4,475,044 $2,275,775
Net transfers between Sub-Accounts
and Fixed Account................ 46,692,915 82,986,033 27,754,724 14,755,314 15,355,290 1,268,571
Withdrawals, surrenders,
annuitizations and contract
charges.......................... (78,027,604) (44,188,615) (4,602,039) (1,413,449) (1,000,866) (41,350)
-------------- ------------ ----------- ----------- ----------- ----------
Net accumulation activity....... $ 28,838,027 $142,719,112 $35,434,901 $26,719,997 $18,829,468 $3,502,996
-------------- ------------ ----------- ----------- ----------- ----------
Annuitization Activity:
Annuitizations.................... $ 727,314 $ 452,588 $ 45,656 $ 73,112 $ 206,502 $ --
Annuity payments and contract
charges.......................... (340,066) (211,454) (22,411) (12,398) -- --
Net transfers between
Sub-Accounts..................... 45,500 34,374 -- 58,620 -- --
Adjustments to annuity reserves... (116,242) (35,852) 646 (2,709) -- --
-------------- ------------ ----------- ----------- ----------- ----------
Net annuitization activity...... $ 316,506 $ 239,656 $ 23,891 $ 116,625 $ 206,502 $ --
-------------- ------------ ----------- ----------- ----------- ----------
Increase (Decrease) in net assets
from contract owner transactions... $ 29,154,533 $142,958,768 $35,458,792 $26,836,622 $19,035,970 $3,502,996
-------------- ------------ ----------- ----------- ----------- ----------
Increase (Decrease) in net assets... $ 247,539,183 $298,730,366 $38,885,006 $30,376,652 $26,320,566 $3,519,310
NET ASSETS:
Beginning of year................... 948,011,552 649,281,186 36,274,179 5,897,527 3,519,310 --
-------------- ------------ ----------- ----------- ----------- ----------
End of year......................... $1,195,550,735 $948,011,552 $75,159,185 $36,274,179 $29,839,876 $3,519,310
============== ============ =========== =========== =========== ==========
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
17
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
SIS TRS UTS
Sub-Account Sub-Account Sub-Account
----------------------------- ------------------------------- -----------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998(a) 1999 1998 1999 1998
------------- ------------- -------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)....................... $ 83,369 $ (37,067) $ 244,657,574 $ 163,419,988 $ 24,907,386 $ 15,309,048
Net realized gains (losses)... 89,915 (88,826) 43,556,184 51,696,637 10,701,662 3,138,939
Net unrealized gains
(losses)..................... 246,639 217,175 (262,617,068) (49,976,046) 42,961,865 5,912,858
----------- ---------- -------------- -------------- ------------ ------------
Increase (Decrease) in net
assets from operations... $ 419,923 $ 91,282 $ 25,596,690 $ 165,140,579 $ 78,570,913 $ 24,360,845
----------- ---------- -------------- -------------- ------------ ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................... $ 3,507,488 $3,255,808 $ 88,544,205 $ 144,694,740 $ 34,302,650 $ 39,799,198
Net transfers between
Sub-Accounts and Fixed
Account.................... 8,565,548 4,501,699 81,610,921 99,107,901 67,737,731 40,165,423
Withdrawals, surrenders,
annuitizations and contract
charges.................... (830,463) (67,691) (250,384,445) (174,048,588) (19,915,248) (10,679,491)
----------- ---------- -------------- -------------- ------------ ------------
Net accumulation
activity................. $11,242,573 $7,689,816 $ (80,229,319) $ 69,754,053 $ 82,125,133 $ 69,285,130
----------- ---------- -------------- -------------- ------------ ------------
Annuitization Activity:
Annuitizations.............. $ -- $ -- $ 2,259,139 $ 2,556,048 $ 111,619 $ 357,771
Annuity payments and
contract charges........... -- -- (1,437,038) (1,415,164) (154,181) (266,331)
Net transfers between
Sub-Accounts............... -- -- (39,113) 104,077 324,919 93,575
Adjustments to annuity
reserves................... -- -- (169,445) 157,679 (15,579) 117,915
----------- ---------- -------------- -------------- ------------ ------------
Net annuitization
activity................. $ -- $ -- $ 613,543 $ 1,402,640 $ 266,778 $ 302,930
----------- ---------- -------------- -------------- ------------ ------------
Increase (Decrease) in net
assets from contract owner
transactions................. $11,242,573 $7,689,816 $ (79,615,776) $ 71,156,693 $ 82,391,911 $ 69,588,060
----------- ---------- -------------- -------------- ------------ ------------
Increase (Decrease) in net
assets..................... $11,662,496 $7,781,098 $ (54,019,086) $ 236,297,272 $160,962,824 $ 93,948,905
NET ASSETS:
Beginning of year............. 7,781,098 -- 1,816,081,256 1,579,783,984 211,254,980 117,306,075
----------- ---------- -------------- -------------- ------------ ------------
End of year................... $19,443,594 $7,781,098 $1,762,062,170 $1,816,081,256 $372,217,804 $211,254,980
=========== ========== ============== ============== ============ ============
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
See notes to financial statements
18
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GAA GGS GGR
Sub-Account Sub-Account Sub-Account
----------------------------- ----------------------------- -----------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).... $ 4,809,747 $ 7,482,682 $ 8,275,209 $ (87,913) $ 6,750,260 $ 15,489,141
Net realized gains (losses)..... 2,885,303 3,692,859 (1,779,438) (498,522) 12,474,312 11,591,824
Net unrealized gains (losses)... 10,272,405 (6,039,574) (12,083,431) 12,271,071 145,129,697 1,458,038
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net
assets from operations..... $ 17,967,455 $ 5,135,967 $ (5,587,660) $ 11,684,636 $164,354,269 $ 28,539,003
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.... $ 2,661,148 $ 8,860,816 $ 1,751,874 $ 3,786,224 $ 10,448,847 $ 15,688,080
Net transfers between
Sub-Accounts and Fixed
Account...................... (14,351,525) (4,974,353) (4,727,708) (12,675,687) 11,508,041 (6,628,067)
Withdrawals, surrenders,
annuitizations and contract
charges...................... (8,142,859) (6,184,345) (14,312,841) (11,908,423) (26,312,080) (14,148,887)
------------ ------------ ------------ ------------ ------------ ------------
Net accumulation activity... $(19,833,236) $ (2,297,882) $(17,288,675) $(20,797,886) $ (4,355,192) $ (5,088,874)
------------ ------------ ------------ ------------ ------------ ------------
Annuitization Activity:
Annuitizations................ $ 12,744 $ 196,381 $ 100,118 $ 158,700 $ 166,248 $ 107,920
Annuity payments and contract
charges...................... (102,934) (88,583) (114,238) (130,085) (116,958) (104,706)
Net transfers between
Sub-Accounts................. (33,199) 1,087 -- -- (12,182) (114,522)
Adjustments to annuity
reserves..................... 14,208 (39,140) (22,713) 3,766 22,465 (5,286)
------------ ------------ ------------ ------------ ------------ ------------
Net annuitization
activity................... $ (109,181) $ 69,745 $ (36,833) $ 32,381 $ 59,573 $ (116,594)
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net
assets from contract owner
transactions................. $(19,942,417) $ (2,228,137) $(17,325,508) $(20,765,505) $ (4,295,619) $ (5,205,468)
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in net
assets....................... $ (1,974,962) $ 2,907,830 $(22,913,168) $ (9,080,869) $160,058,650 $ 23,333,535
NET ASSETS:
Beginning of year............... 123,345,612 120,437,782 89,813,963 98,894,832 260,479,236 237,145,701
------------ ------------ ------------ ------------ ------------ ------------
End of year..................... $121,370,650 $123,345,612 $ 66,900,795 $ 89,813,963 $420,537,886 $260,479,236
============ ============ ============ ============ ============ ============
</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
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GTR SGS
Sub-Account Sub-Account
----------------------------------- ----------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
1999 1998 1999(b)
---------------- ---------------- ----------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 5,898,913 $ 2,635,441 $ (7,994)
Net realized gains (losses)............................... 3,497,527 3,803,017 (341,864)
Net unrealized gains (losses)............................. (2,696,231) 6,391,001 1,072,320
------------ ----------- ----------
Increase (Decrease) in net assets from operations..... $ 6,700,209 $12,829,459 $ 722,462
------------ ----------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.............................. $ 5,485,526 $ 8,845,349 $ 421,107
Net transfers between Sub-Accounts and Fixed Account.... 1,803,965 8,428,546 8,018,971
Withdrawals, surrenders, annuitizations and contract
charges................................................ (6,850,689) (4,603,063) (4,249)
------------ ----------- ----------
Net accumulation activity............................. $ 438,802 $12,670,832 $8,435,829
------------ ----------- ----------
Annuitization Activity:
Annuitizations.......................................... $ 114,644 $ 134,223 $ --
Annuity payments and contract charges................... (78,129) (61,120) --
Net transfers between Sub-Accounts...................... -- -- --
Adjustments to annuity reserves......................... (3,828) 16,790 --
------------ ----------- ----------
Net annuitization activity............................ $ 32,687 $ 89,893 $ --
------------ ----------- ----------
Increase (Decrease) in net assets from contract owner
transactions........................................... $ 471,489 $12,760,725 $8,435,829
------------ ----------- ----------
Increase (Decrease) in net assets....................... $ 7,171,698 $25,590,184 $9,158,291
NET ASSETS:
Beginning of year......................................... 95,274,472 69,684,288 --
------------ ----------- ----------
End of year............................................... $102,446,170 $95,274,472 $9,158,291
============ =========== ==========
</TABLE>
(b) For the period November 5, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
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
(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.
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
(3) CONTRACT CHARGES
A mortality and expense risk charge based on the value of the Variable Account
is deducted from the Variable Account at the end of each valuation period for
the mortality and expense risks assumed by the Sponsor. The deductions are
transferred periodically to the Sponsor. Currently, the deduction is at an
effective annual rate of 1.25% for Regatta, Regatta Gold and Regatta Platinum
contracts and 1.00% for Regatta Classic contracts.
Each year on the account anniversary, an account administration fee ("Account
Fee") equal to the lesser of $30 or 2% of the participant's account value in the
case of Regatta and Regatta Gold contracts, $35 in the case of Regatta Platinum
contracts and $50 in the case of Regatta Classic contracts (after account year
5, the account fee, for Regatta Gold and Regatta Platinum contracts, may be
changed annually, but it may not exceed the lesser of $50 or 2% of the
participant's account value) is deducted from the participant's account to
reimburse the Sponsor for certain administrative expenses. After the annuity
commencement date, the Account Fee will be deducted pro rata from each variable
annuity payment made during the year.
The Sponsor does not deduct a sales charge from purchase payments. However, in
the case of Regatta, Regatta Gold and Regatta Platinum contracts, 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
contracts, a withdrawal charge of 1% is applied to purchase payments withdrawn
which have been credited to a participant's account for less than one year.
For assuming the risk that withdrawal charges may be insufficient to compensate
it for the costs of distributing the Regatta contracts, the Sponsor makes a
deduction from the Variable Account at the end of each valuation period for the
first seven account years at an effective annual rate of 0.15% of the net assets
attributable to such contracts. No deduction for the distribution expense charge
is made after the seventh account anniversary.
As reimbursement for administrative expenses attributable to Regatta Gold,
Regatta Classic and Regatta Platinum contracts, which exceed the revenues
received from the Account Fees described above derived from such contracts, the
Sponsor makes a deduction from the Variable Account at the end of each valuation
period at an effective annual rate of 0.15% of the net assets attributable to
such contracts.
(4) ANNUITY RESERVES
Annuity reserves are calculated using the 1983 Individual Annuitant Mortality
Table and an assumed interest rate of at least 4% or 3%, as stated in each
participant's contract or certificate, as applicable. Required adjustments to
the reserves are accomplished by transfers to or from the Sponsor.
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
<TABLE>
<CAPTION>
Units Transferred
Between Sub-Accounts
and
Units Outstanding Fixed Accumulation
Beginning of Year Units Purchased Account
---------------------------- ---------------------------- ----------------------------
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
MFS REGATTA
CONTRACTS:
------------------------------
CAS -- Level 1 464,349 2,993,020 1,694 -- (403,678) (2,286,027)
CAS -- Level 2 9,053,993 5,390,680 6,466 -- 841,337 5,658,421
GSS -- Level 1 325,241 1,462,222 1,870 -- (310,743) (932,035)
GSS -- Level 2 2,656,978 1,514,633 10,259 -- 1,016,504 1,951,275
HYS -- Level 1 73,632 537,033 165 -- (69,249) (384,324)
HYS -- Level 2 1,320,379 975,126 -- -- 160,884 742,028
MSS -- Level 1 196,463 941,686 719 -- (170,145) (678,909)
MSS -- Level 2 2,730,897 2,022,757 8,046 -- 791,231 1,359,567
MMS -- Level 1 268,447 1,518,722 6,604 12,315 (78,142) 1,824,176
MMS -- Level 2 3,722,758 1,845,809 46,627 8,252 4,208,078 6,810,959
TRS -- Level 1 898,137 5,756,653 980 4,933 (753,744) (4,180,220)
TRS -- Level 2 12,506,430 7,838,741 12,834 2,056 1,380,346 8,389,482
GGS -- Level 1 89,328 700,338 762 -- (80,050) (536,114)
GGS -- Level 2 834,010 483,253 -- -- 81,087 702,569
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Year
---------------------------- ----------------------------
Year Year Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
MFS REGATTA
CONTRACTS:
------------------------------
CAS -- Level 1 (39,407) (242,644) 22,958 464,349
CAS -- Level 2 (2,054,522) (1,995,108) 7,847,274 9,053,993
GSS -- Level 1 (16,368) (204,946) -- 325,241
GSS -- Level 2 (888,017) (808,930) 2,795,724 2,656,978
HYS -- Level 1 (4,383) (79,077) 165 73,632
HYS -- Level 2 (405,927) (396,775) 1,075,336 1,320,379
MSS -- Level 1 (21,924) (66,314) 5,113 196,463
MSS -- Level 2 (852,146) (651,427) 2,678,028 2,730,897
MMS -- Level 1 (180,769) (3,086,766) 16,140 268,447
MMS -- Level 2 (5,304,846) (4,942,262) 2,672,617 3,722,758
TRS -- Level 1 (113,631) (683,229) 31,742 898,137
TRS -- Level 2 (3,970,196) (3,723,849) 9,929,414 12,506,430
GGS -- Level 1 (9,545) (74,896) 495 89,328
GGS -- Level 2 (284,961) (351,812) 630,136 834,010
</TABLE>
23
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
Units Transferred
Between Sub-Accounts
and
Units Outstanding Fixed Accumulation
Beginning of Year Units Purchased Account
---------------------------- ---------------------------- ----------------------------
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
MFS REGATTA GOLD
CONTRACTS:
------------------------------
BDS(a)........................ 1,182,239 -- 128,326 437,383 1,055,550 776,227
CAS........................... 37,500,481 35,528,897 515,449 2,963,417 (1,432,874) 1,606,290
COS........................... 10,262,282 6,175,224 317,640 2,085,178 3,084,055 2,487,753
MIT........................... 51,880,765 40,709,531 1,104,376 7,531,155 814,616 6,682,559
EGS........................... 28,900,957 25,039,986 564,144 3,519,560 856,790 1,929,406
EIS(a)........................ 528,238 -- 96,901 235,337 840,387 312,512
FCE........................... 2,147,348 2,159,228 49,578 203,168 814,122 (114,376)
FCI........................... 3,290,043 2,390,056 103,809 532,412 71,906 520,640
FCG........................... 5,214,558 4,441,911 53,226 449,506 (373,297) 655,503
GSS........................... 23,218,234 20,508,844 381,294 1,760,124 2,812,014 2,891,419
HYS........................... 14,190,817 11,699,195 209,455 2,333,919 (264,388) 1,143,802
MSS........................... 11,245,144 11,326,719 111,495 838,284 874,242 (135,303)
MIS(a)........................ 4,121,518 -- 1,179,064 2,049,150 7,769,109 2,166,812
MMS........................... 29,387,086 21,463,139 1,347,998 5,295,611 10,642,975 9,723,034
NWD(a)........................ 794,859 -- 99,202 252,432 818,140 573,525
RES........................... 38,553,986 35,654,917 602,325 1,299,737 (220,117) 3,631,861
RGS........................... 2,408,676 533,928 120,353 857,568 906,773 1,134,366
RSS(a)........................ 190,267 -- 29,576 83,591 929,786 110,312
SIS(a)........................ 622,914 -- 67,062 207,182 260,781 423,614
TRS........................... 71,102,020 66,303,467 922,198 5,585,984 (771,786) 4,374,616
UTS........................... 9,023,102 6,101,638 323,450 1,559,584 972,853 1,878,542
GAA........................... 7,576,691 7,928,833 61,909 440,970 (972,115) (400,015)
GGS........................... 5,048,219 6,127,641 51,599 199,740 (404,547) (782,796)
GGR........................... 14,522,129 15,058,757 189,567 815,222 82,020 (504,727)
GTR........................... 5,354,633 4,676,853 80,538 458,384 (144,224) 506,340
SGS(b)........................ -- -- 4,006 -- 555,135 --
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Year
---------------------------- ----------------------------
Year Year Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
MFS REGATTA GOLD
CONTRACTS:
------------------------------
BDS(a)........................ (280,793) (31,371) 2,085,322 1,182,239
CAS........................... (3,736,966) (2,598,123) 32,846,090 37,500,481
COS........................... (818,305) (485,873) 12,845,672 10,262,282
MIT........................... (4,597,858) (3,042,480) 49,201,899 51,880,765
EGS........................... (2,260,070) (1,587,995) 28,061,821 28,900,957
EIS(a)........................ (164,360) (19,611) 1,301,166 528,238
FCE........................... (250,014) (100,672) 2,761,034 2,147,348
FCI........................... (277,959) (153,065) 3,187,799 3,290,043
FCG........................... (384,891) (332,362) 4,509,596 5,214,558
GSS........................... (3,181,131) (1,942,153) 23,230,411 23,218,234
HYS........................... (1,598,765) (986,099) 12,537,119 14,190,817
MSS........................... (1,198,416) (784,556) 11,032,465 11,245,144
MIS(a)........................ (1,084,371) (94,444) 11,985,320 4,121,518
MMS........................... (12,930,216) (7,094,698) 28,447,843 29,387,086
NWD(a)........................ (112,785) (31,098) 1,599,416 794,859
RES........................... (3,000,415) (2,032,529) 35,935,779 38,553,986
RGS........................... (282,560) (117,186) 3,153,242 2,408,676
RSS(a)........................ (35,048) (3,636) 1,114,581 190,267
SIS(a)........................ (58,267) (7,882) 892,490 622,914
TRS........................... (8,328,466) (5,162,047) 62,923,966 71,102,020
UTS........................... (730,997) (516,662) 9,588,408 9,023,102
GAA........................... (478,155) (393,097) 6,188,330 7,576,691
GGS........................... (754,183) (496,366) 3,941,088 5,048,219
GGR........................... (1,279,881) (847,123) 13,513,835 14,522,129
GTR........................... (383,402) (286,944) 4,907,545 5,354,633
SGS(b)........................ (285) -- 558,856 --
</TABLE>
(a) For the period May 6, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(b) For the period November 5, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
24
<PAGE>
REGATTA, REGATTA GOLD, REGATTA CLASSIC AND REGATTA PLATINUM SUB-ACCOUNTS
INCLUDED IN
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
Units Transferred
Between Sub-Accounts
and
Units Outstanding Fixed Accumulation
Beginning of Year Units Purchased Account
---------------------------- ---------------------------- ----------------------------
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
MFS REGATTA CLASSIC
CONTRACTS:
------------------------------
BDS(a)........................ 35,123 -- 38,838 33,440 (23,411) 1,859
CAS........................... 465,812 265,497 98,517 170,863 127,840 49,860
COS........................... 277,518 160,778 98,185 98,617 94,668 29,367
MIT........................... 1,213,193 554,216 343,708 449,788 47,381 267,481
EGS........................... 959,802 318,028 206,621 613,049 (6,847) 55,590
EIS(a)........................ 12,113 -- 36,114 9,590 28,711 2,523
FCE........................... 43,654 40,698 14,933 16,413 17,553 (12,814)
FCI........................... 83,820 67,892 33,705 20,502 (6,058) (3,210)
FCG........................... 90,582 51,038 5,230 34,300 289 8,318
GSS........................... 297,310 113,243 100,923 139,510 (71,777) 51,253
HYS........................... 342,363 155,306 64,265 224,640 (62,579) (2,332)
MSS........................... 140,324 118,243 64,332 59,666 112,516 (29,055)
MIS(b)........................ 232,788 -- 298,311 78,233 (19,461) 156,319
MMS........................... 270,417 77,105 1,348,530 733,426 (15,060) (366,138)
NWD(b)........................ 29,182 -- 55,212 13,601 19,871 15,614
RES........................... 872,289 553,996 161,577 279,626 (26,160) 85,963
RGS........................... 33,882 6,085 40,357 9,086 2,489 19,504
RSS(d)........................ 2,234 -- 11,775 942 15,565 1,292
SIS(c)........................ 2,577 -- 17,748 1,726 2,629 851
TRS........................... 1,731,292 951,205 455,454 681,412 (52,461) 155,997
UTS........................... 178,136 77,009 90,782 97,613 119,327 15,497
GAA........................... 53,167 50,531 1,943 16,112 (7,138) (8,665)
GGS........................... 40,074 19,394 13,692 20,516 (7,500) 639
GGR........................... 121,297 85,526 17,448 47,642 7,909 (2,579)
GTR........................... 91,253 45,122 35,847 38,335 (2,772) 8,687
SGS(e)........................ -- -- -- -- 5,701 --
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Year
---------------------------- ----------------------------
Year Year Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
MFS REGATTA CLASSIC
CONTRACTS:
------------------------------
BDS(a)........................ (2,340) (176) 48,210 35,123
CAS........................... (48,331) (20,408) 643,838 465,812
COS........................... (19,621) (11,244) 450,750 277,518
MIT........................... (136,741) (58,292) 1,467,541 1,213,193
EGS........................... (28,907) (26,865) 1,130,669 959,802
EIS(a)........................ (2,478) -- 74,460 12,113
FCE........................... (3,359) (643) 72,781 43,654
FCI........................... (12,769) (1,364) 98,698 83,820
FCG........................... (6,449) (3,074) 89,652 90,582
GSS........................... (44,402) (6,696) 282,054 297,310
HYS........................... (31,657) (35,251) 312,392 342,363
MSS........................... (11,177) (8,530) 305,995 140,324
MIS(b)........................ (10,029) (1,764) 501,609 232,788
MMS........................... (525,766) (173,976) 1,078,121 270,417
NWD(b)........................ (5,208) (33) 99,057 29,182
RES........................... (44,435) (47,296) 963,271 872,289
RGS........................... (2,310) (793) 74,418 33,882
RSS(d)........................ (588) -- 28,986 2,234
SIS(c)........................ (4) -- 22,950 2,577
TRS........................... (146,430) (57,322) 1,987,855 1,731,292
UTS........................... (31,976) (11,983) 356,269 178,136
GAA........................... (4,629) (4,811) 43,343 53,167
GGS........................... (3,904) (475) 42,362 40,074
GGR........................... (10,773) (9,292) 135,881 121,297
GTR........................... (6,301) (891) 118,027 91,253
SGS(e)........................ -- -- 5,701 --
</TABLE>
(a) For the period June 22, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(b) For the period May 7, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(c) For the period June 26, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(d) For the period August 8, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(e) For the period November 24, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
25
<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 Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
MFS REGATTA PLATINUM
CONTRACTS:
------------------------------
BDS(a)........................ 628,000 -- 941,360 491,319 1,491,043 143,015
CAS(b)........................ 1,683,164 -- 4,849,607 1,489,422 4,545,428 215,237
COS(d)........................ 556,955 -- 2,758,794 480,199 2,891,912 80,801
MIT(b)........................ 5,331,018 -- 14,730,220 4,380,217 17,398,081 1,013,330
EGS(b)........................ 1,651,404 -- 4,181,549 1,412,976 4,397,355 254,376
EIS(c)........................ 272,362 -- 946,919 237,608 1,153,460 35,740
FCE(c)........................ 72,586 -- 171,566 67,723 260,658 4,892
FCI(c)........................ 338,938 -- 649,457 305,695 1,016,982 37,500
FCG(d)........................ 199,346 -- 355,635 167,384 379,426 34,931
GSS(d)........................ 816,102 -- 1,959,697 686,599 4,315,488 142,121
HYS(c)........................ 1,000,705 -- 1,613,791 917,703 2,693,972 95,977
MSS(e)........................ 211,044 -- 948,374 180,220 986,589 35,500
MIS(b)........................ 2,428,134 -- 9,327,754 2,052,872 9,497,539 400,450
MMS(c)........................ 886,479 -- 4,525,979 1,436,884 (51,593) (492,250)
NWD(c)........................ 436,178 -- 750,621 366,459 945,469 75,832
RES(e)........................ 1,751,713 -- 3,783,737 1,463,540 4,553,399 319,544
RGS(a)........................ 387,080 -- 945,769 306,364 1,427,602 82,311
RSS(f)........................ 181,131 -- 366,014 162,752 418,385 19,544
SIS(g)........................ 157,634 -- 270,681 123,410 588,831 35,045
TRS(c)........................ 2,318,847 -- 5,942,946 1,926,233 9,684,842 434,196
UTS(e)........................ 819,649 -- 2,177,718 647,482 3,571,380 178,704
GAA(d)........................ 228,839 -- 168,337 175,049 134,452 56,466
GGS(c)........................ 76,270 -- 79,719 78,588 159,520 (2,199)
GGR(d)........................ 162,856 -- 536,984 125,715 661,623 37,960
GTR(h)........................ 152,857 -- 356,243 116,666 417,027 37,792
SGS(I)........................ -- -- 32,991 -- 156,786 --
<CAPTION>
Units Withdrawn,
Surrendered, and Units Outstanding
Annuitized End of Year
---------------------------- ----------------------------
Year Year Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
MFS REGATTA PLATINUM
CONTRACTS:
------------------------------
BDS(a)........................ (89,955) (6,334) 2,970,448 628,000
CAS(b)........................ (307,461) (21,495) 10,770,738 1,683,164
COS(d)........................ (119,494) (4,045) 6,088,167 556,955
MIT(b)........................ (1,015,638) (62,529) 36,443,681 5,331,018
EGS(b)........................ (278,100) (15,948) 9,952,208 1,651,404
EIS(c)........................ (50,196) (986) 2,322,545 272,362
FCE(c)........................ (32,976) (29) 471,834 72,586
FCI(c)........................ (44,938) (4,257) 1,960,439 338,938
FCG(d)........................ (30,076) (2,969) 904,331 199,346
GSS(d)........................ (173,758) (12,618) 6,917,529 816,102
HYS(c)........................ (181,956) (12,975) 5,126,512 1,000,705
MSS(e)........................ (49,608) (4,676) 2,096,399 211,044
MIS(b)........................ (512,221) (25,188) 20,741,206 2,428,134
MMS(c)........................ (512,126) (58,155) 4,848,739 886,479
NWD(c)........................ (67,728) (6,113) 2,064,540 436,178
RES(e)........................ (266,217) (31,371) 9,822,632 1,751,713
RGS(a)........................ (67,804) (1,595) 2,692,647 387,080
RSS(f)........................ (51,342) (1,165) 914,188 181,131
SIS(g)........................ (29,954) (821) 987,192 157,634
TRS(c)........................ (509,290) (41,582) 17,437,345 2,318,847
UTS(e)........................ (170,834) (6,537) 6,397,913 819,649
GAA(d)........................ (28,837) (2,676) 502,791 228,839
GGS(c)........................ (13,795) (119) 301,714 76,270
GGR(d)........................ (32,892) (819) 1,328,571 162,856
GTR(h)........................ (24,793) (1,601) 901,334 152,857
SGS(I)........................ (76) -- 189,701 --
</TABLE>
(a) For the period June 30, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(b) For the period June 5, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(c) For the period June 18, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(d) For the period June 23, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(e) For the period June 16, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(f) For the period June 29, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(g) For the period June 26, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(h) For the period July 7, 1998 (commencement of operations of Sub-Account)
through December 31, 1998.
(i) For the period November 5, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
26
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Participants in Regatta, Regatta Gold, Regatta Classic and Regatta
Platinum Sub-Accounts and the Board of Directors of Sun Life Assurance Company
of Canada (U.S.):
We have audited the accompanying statement of condition of Bond Sub-Account,
Capital Appreciation Sub-Account, Capital Opportunities Sub-Account,
Massachusetts Investors Trust Sub-Account, Emerging Growth Sub-Account, Equity
Income Sub-Account, Emerging Markets Equity Sub-Account, International Growth
Sub-Account, International Growth and Income Sub-Account, Government Securities
Sub-Account, High Yield Sub-Account, Managed Sectors Sub-Account, Massachusetts
Investors Growth Stock Sub-Account, Money Market Sub-Account, New Discovery
Sub-Account, Research Sub-Account, Research Growth and Income Sub-Account,
Research International Sub-Account, Strategic Income Sub-Account, Total Return
Sub-Account, Utilities Sub-Account, Global Asset Allocation Sub-Account, Global
Governments Sub-Account, Global Growth Sub-Account, Global Total Return
Sub-Account, and Strategic Growth Sub-Account of Sun Life of Canada (U.S.)
Variable Account F (the "Sub-Accounts") as of December 31, 1999, the related
statement of operations for the years then ended and the statements of changes
in net assets for the years ended December 31, 1999 and December 31, 1998. These
financial statements are the responsibility of management. Our responsibility is
to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities held at December 31, 1999 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Sub-Accounts as of December 31, 1999,
the results of their operations and the changes in their net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 10, 2000
