-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VEYYY2sjRplZ7dL9XFInkAPdTNZqMvGouVI59xptePNcb0jEoqFqVUEBhCggFzPE HDH5X3TuP63URRYgbUQIVg== 0001193805-08-001858.txt : 20080807 0001193805-08-001858.hdr.sgml : 20080807 20080807112101 ACCESSION NUMBER: 0001193805-08-001858 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080531 FILED AS OF DATE: 20080807 DATE AS OF CHANGE: 20080807 EFFECTIVENESS DATE: 20080807 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FDP Series, Inc. CENTRAL INDEX KEY: 0001321652 IRS NUMBER: 000000000 STATE OF INCORPORATION: MD FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21744 FILM NUMBER: 08997170 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 800-441-7762 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY CITY: WILMINGTON STATE: DE ZIP: 19809 0001321652 S000002993 MFS Research International FDP Fund C000008226 Investor A C000008227 Investor B C000008228 Investor C C000008229 Institutional 0001321652 S000002994 Marsico Growth FDP Fund C000008230 Investor A C000008231 Investor B C000008232 Investor C C000008233 Institutional 0001321652 S000002995 Van Kampen Value FDP Fund C000008234 Investor A C000008235 Investor B C000008236 Investor C C000008237 Institutional 0001321652 S000002996 Franklin Templeton Total Return FDP Fund C000008238 Investor A C000008239 Investor B C000008240 Investor C C000008241 Institutional N-CSR 1 e604071_ncsr-fdp.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21744 Name of Fund: FDP Series, Inc. Franklin Templeton Total Return FDP Fund Marsico Growth FDP Fund MFS Research International FDP Fund Van Kampen Value FDP Fund Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer, FDP Series, Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011 Registrant's telephone number, including area code: (800) 441-7762 Date of fiscal year end: 05/31/2008 Date of reporting period: 06/01/2007 - 05/31/2008 Item 1 - Report to Stockholders EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS FDP Series, Inc. BLACKROCK ANNUAL REPORT | MAY 31, 2008 MFS Research International FDP Fund Marsico Growth FDP Fund Van Kampen Value FDP Fund Franklin Templeton Total Return FDP Fund NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Table of Contents ================================================================================ Page - -------------------------------------------------------------------------------- A Letter to Shareholders ................................................... 3 Annual Report: Fund Summaries ............................................................. 4 About Fund Performance ..................................................... 12 Disclosure of Expenses ..................................................... 13 Portfolio Information ...................................................... 15 Financial Statements: Schedules of Investments ................................................. 17 Statements of Assets and Liabilities ..................................... 32 Statements of Operations ................................................. 34 Statements of Changes in Net Assets ...................................... 35 Financial Highlights ....................................................... 38 Notes to Financial Statements .............................................. 46 Report of Independent Registered Public Accounting Firm .................... 57 Important Tax Information (Unaudited) ...................................... 58 Officers and Directors ..................................................... 59 Additional Information ..................................................... 63 Mutual Fund Family ......................................................... 66 2 FDP SERIES, INC. MAY 31, 2008 A Letter to Shareholders Dear Shareholder For much of the reporting period, investors grappled with the repercussions of the credit crisis that surfaced last summer, and with the effects of a weakening economy and surging energy and food prices. These factors were offset by the positive impact from robust export activity, strength in the non-financial corporate sector and monetary and fiscal stimuli. Amid the market turbulence, the Federal Reserve Board (the "Fed") initiated a series of moves to restore liquidity and bolster financial market stability. Since September 2007, the central bank slashed the target federal funds rate 325 basis points (3.25%), bringing the rate to 2.0% as of period-end. Also of significance were its other policy decisions, which included extending use of the discount window to broker-dealers and investment banks and backstopping the rescue of ill-fated Bear Stearns. Notably, on April 30, the Fed dropped previous references to downside growth risks and added more emphasis on inflationary pressures, indicating the central bankers have likely concluded the current cycle of monetary easing. Nevertheless, the Fed's response to the financial crisis helped to ease credit turmoil and investor anxiety. Since hitting a low point on March 17, following the collapse of Bear Stearns, stocks appreciated 10% (through May 30). Most international markets, which had outperformed U.S. stocks for some time, saw a reversal in that trend, as the troubled credit situation and downward pressures on growth fanned recession fears. In fixed income markets, Treasury securities rallied (yields fell as prices correspondingly rose), as a broad "flight-to-quality" theme persisted. The yield on 10-year Treasury issues, which touched 5.30% in June 2007 (its highest level in five years), fell to a low of 3.34% in March 2008 before rising to 4.06% by May 31 as investors grew more risk tolerant and shifted out of Treasury issues in favor of stocks and other high-quality fixed income sectors. Tax-exempt issues underperformed throughout most of the reporting period, pressured by problems among municipal bond insurers and the freeze in the market for auction rate securities. However, the final two months saw a firmer tone in the municipal market, as investors took advantage of unusually high yields. On the whole, results for the major benchmark indexes generally reflected heightened investor risk aversion:
Total Returns as of May 31, 2008 6-month 12-month =========================================================================================================== U.S. equities (S&P 500 Index) (4.47%) (6.70%) - ----------------------------------------------------------------------------------------------------------- Small cap U.S. equities (Russell 2000 Index) (1.87) (10.53) - ----------------------------------------------------------------------------------------------------------- International equities (MSCI Europe, Australasia, Far East Index) (5.21) (2.53) - ----------------------------------------------------------------------------------------------------------- Fixed income (Lehman Brothers U.S. Aggregate Index) 1.49 6.89 - ----------------------------------------------------------------------------------------------------------- Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) 1.44 3.87 - ----------------------------------------------------------------------------------------------------------- High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) 1.81 (1.08) - -----------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index. As you navigate today's volatile markets, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more up-to-date commentary on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead. Sincerely, /s/ Rob Kapito Rob Kapito President, BlackRock Advisors, LLC 3 We are pleased to provide you with this annual shareholder report for FDP Series, Inc. FDP Series is part of the Funds Diversified PortfoliosSM (FDP) Service. You may receive separate shareholder reports for other funds available through the Service. THIS PAGE NOT PART OF YOUR FUND REPORT Fund Summary MFS Research International FDP Fund Portfolio Management Commentary How did the Fund perform? o The Fund outperformed the benchmark Morgan Stanley Capital International Europe, Australasia and Far East ("MSCI EAFE") Index for the 12-month period ended May 31, 2008. What factors influenced performance? o The top-performing sectors relative to the benchmark were basic materials, energy, industrial goods & services and utilities & communications. In each case, stock selection was the primary driver of performance. o Within basic materials, steel producer Steel Authority of India, German industrial and medical gases provider Linde AG and U.K. mining giant BHP Billiton Plc had the greatest positive impact on Fund performance, as all three companies outpaced the index for the annual period. o Favorable security selection together with an overweight position in the strong-performing energy sector also enhanced relative returns. Oil and gas refiner Statoilhydro ASA (Norway), oil and gas exploration and production company Petroleo Brasileiro SA (Brazil) and natural gas producer OAO Gazprom (Russia) were the Fund's top performers. o Industrial machinery manufacturer Bucyrus International was the Fund's lead contributor in industrial goods & services, while power and gas company E.ON AG (Germany) led in the utilities & communications sector. Elsewhere, relative performance was bolstered by our position in Swiss food company Nestle SA and Brazilian banking firm Uniao de Bancos Brasileiros SA. o On the negative side, stock selection in the financial services sector was the main detractor from relative performance. The Fund's weakest holdings included Barclays Plc (U.K.), Royal Bank of Scotland (U.K.), UBS AG (Switzerland), Credit Agricole SA (France), UniCredito Italiano SpA (Italy), Anglo Irish Bank Corp. Plc (Ireland) and Hypo Real Estate Holding AG (Germany). Elsewhere, Fund positions in mining operator Rio Tinto (Australia) and motorcycle maker Yamaha Motor Co., Ltd. (Japan) detracted from relative returns. The absence of a position in strong-performing steel producer ArcelorMittal (Luxembourg) also hurt results. Describe recent portfolio activity. o Continued uncertainty and volatility in global equity markets has provided us with an opportunity to add to high-quality names in the portfolio. Accordingly, we increased holdings in companies whose share prices were negatively impacted by the volatility. We also slightly increased the Fund's weighting in emerging markets. In previous periods, we had been lowering our emerging markets exposure, as valuations in many of those names became a bit rich for our liking. Lastly, we increased our position in Japan, although the Fund remains underweight relative to the benchmark. Describe Fund positioning at period-end. o The Fund is a sector-neutral portfolio that emphasizes bottom-up fundamental research. Therefore, stock selection is strictly a by-product of where our analysts are finding their best ideas. Nevertheless, we continued to move the portfolio into larger-capitalization names, a trend we have maintained since early 2006. The focus of the Fund remains on high-quality companies whose long-term fundamentals remain intact. This is especially true during times of uncertainty. The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results. 4 FDP SERIES, INC. MAY 31, 2008 MFS Research International FDP Fund Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Fund's Institutional and Investor A Shares compared to growth of an investment in the MSCI Europe, Australasia and Far East Index. Values are from July 27, 2005 to May 2008. MSCI Europe, Institutional Investor A Australasia and Shares(1,3) Shares(1,3) Far East Index(4) 7/27/05(2) $10,000 $9,475 $10,000 5/06 $12,210 $11,550 $12,422 5/07 $15,216 $14,350 $15,756 5/08 $15,620 $14,698 $15,357 1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including administration fees. 2 Commencement of operations. 3 MFS Research International FDP Fund invests, under normal market conditions, at least 65% of its assets in common stocks and related securities, such as preferred stocks, convertible securities and depositary receipts, of foreign companies. 4 This unmanaged broad-based Index measures the total returns of developed foreign stock markets in Europe, Australasia and the Far East. Performance Summary for the Period Ended May 31, 2008 Average Annual Total Returns 1 ----------------------------------------- 1 Year Since Inception 2 ------------------- ------------------- 6-Month w/o sales w/sales w/o sales w/sales Total Returns charge charge charge charge - -------------------------------------------------------------------------------- Institutional ........ (1.93%) 2.66% -- 16.98% -- Investor A ........... (2.07) 2.42 (2.95%) 16.69 14.50% Investor B ........... (2.45) 1.62 (2.64) 15.80 14.86 Investor C ........... (2.43) 1.57 0.63 15.80 15.80 MSCI EAFE Index ...... (5.21) (2.53) -- 16.28 -- - -------------------------------------------------------------------------------- 1 Assuming maximum sales charges. See "About Fund Performance" on page 12 for a detailed description of share classes, including any related sales charges and fees. 2 The Portfolio commenced operations on 7/27/05. Past performance is not indicative of future results. FDP SERIES, INC. MAY 31, 2008 5 Fund Summary Marsico Growth FDP Fund Portfolio Management Commentary How did the Fund perform? o Fund results outperformed that of the benchmark S&P 500 Index for the 12-month period ended May 31, 2008. What factors influenced performance? o The primary drivers of the Fund's outperformance versus the benchmark were stock selection and an overweight position in the materials sector. Agricultural products company Monsanto Co. and industrial gas producer Praxair, Inc. were among the strongest-performing individual holdings. o The Fund had less exposure than the benchmark to the weak-performing financials sector, which aided results. Additionally, the Fund's position in Industrial and Commercial Bank of China Ltd. appreciated sharply and was the most significant individual contributor in the sector. o Holdings in other sectors, including Fund positions in credit card processor MasterCard, Inc., railroad operator Union Pacific Corp., Brazil-based oil producer Petroleo Brasileiro SA, and China-based telecommunications company China Mobile Ltd., also enhanced returns. o On an individual stock basis, health services provider UnitedHealth Group, Inc., diversified financials companies The Goldman Sachs Group, Inc. and Lehman Brothers Holdings, Inc. and pharmaceutical company Merck & Co., Inc. were the most significant detractors. In the consumer discretionary sector, positions in media company Comcast Corp. and hotel & casino operator MGM Mirage also hurt performance. o In addition, an underweight position in the consumer staples and energy sectors detracted from Fund results, as these were among the stronger-performing sectors in the benchmark for the 12 months. Describe recent portfolio activity. o During the reporting period, on average, the Fund maintained overweight positions versus the benchmark in the consumer discretionary, telecommunication services and materials sectors. The Fund generally maintained a significant underweight relative to the benchmark in financials, consumer staples, energy and utilities. Sector weightings are primarily a residual of the stock selection process. Describe Fund positioning at period-end. o As of May 31, 2008, the Fund's most significant economic sector allocations were in industrials, financials, consumer discretionary, information technology and energy, while it had little exposure to the utilities sector. The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results. 6 FDP SERIES, INC. MAY 31, 2008 Marsico Growth FDP Fund Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Fund's Institutional and Investor A Shares compared to growth of an investment in the S&P 500(R) Index. Values are from July 27, 2005 to May 2008. Institutional Investor A S&P 500(R) Shares(1,3) Shares(1,3) Index(4) 7/27/05(2) $10,000 $9,475 $10,000 5/06 $10,700 $10,129 $10,440 5/07 $12,350 $11,654 $12,820 5/08 $12,280 $11,560 $11,961 1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including administration fees. 2 Commencement of operations. 3 Marsico Growth FDP Fund invests primarily in equity securities of large cap companies that are selected for their growth potential. 4 This unmanaged broad-based Index is comprised of 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE issues), representing about 75% of NYSE capitalization and 30% of NYSE issues. S&P 500 is a trademark of the McGraw-Hill Companies. Performance Summary for the Period Ended May 31, 2008 Average Annual Total Returns 1 ----------------------------------------- 1 Year Since Inception 2 ------------------- ------------------- 6-Month w/o sales w/sales w/o sales w/sales Total Returns charge charge charge charge - -------------------------------------------------------------------------------- Institutional ....... (7.60%) (0.57%) -- 7.49% -- Investor A .......... (7.72) (0.81) (6.02%) 7.24 5.23% Investor B .......... (8.01) (1.49) (5.92) 6.43 5.33 Investor C .......... (8.01) (1.57) (2.55) 6.43 6.43 S&P 500 Index ....... (4.47) (6.70) -- 6.50 -- - -------------------------------------------------------------------------------- 1 Assuming maximum sales charges. See "About Fund Performance" on page 12 for a detailed description of share classes, including any related sales charges and fees. 2 The Portfolio commenced operations on 7/27/05. Past performance is not indicative of future results. FDP SERIES, INC. MAY 31, 2008 7 Fund Summary Van Kampen Value FDP Fund Portfolio Management Commentary How did the Fund perform? o Fund results lagged those of both the Russell 1000 Value Index and the S&P 500 Index for the 12-month period ended May 31, 2008. What factors influenced performance? o Relative to both indexes, the largest positive contribution came from the Fund's exposure to consumer staples stocks. Overall, the sector performed well over the annual period, as investors preferred stocks with more defensive (that is, less economically-sensitive) characteristics amid the slower economic environment. o Relative to the Russell 1000 Value Index, the Fund benefited from its underweight in the financials sector. In addition, relative to the S&P 500 Index, the telecommunication services sector was a notable contributor to performance, driven by favorable stock selection and a resulting overweight position in the sector. o The largest detractor from relative performance was the Fund's lack of exposure to energy. The sector generated the highest returns, by far, within both indexes, as oil prices continued to reach new highs throughout the fiscal year. However, the excessively high valuations of energy stocks have made them unfit for investment by our strict risk-reward standards. o The Fund's exposure to the health care sector also dampened performance relative to both indexes. This was largely due to a pharmaceutical holding that lost value after one of its drugs compared less favorably relative to a generic version. Describe recent portfolio activity. o There were no significant changes to the Fund's positioning during the 12 months. In general, we continued to evaluate investment opportunities on a stock-by-stock basis, and only invested in stocks meeting our strict valuation and risk-reward criteria. In applying these standards to the stock market over the past year, we believed there was a strong case for the Fund's positioning to continue, with only marginal changes as attractive opportunities to buy or sell arose. o We did sell several holdings that were approaching their fair valuations, which resulted in a slight reduction in the Fund's consumer staples and health care weightings, while we added small positions in a few financial services stocks that met our investment principles. Describe Fund positioning at period-end. o As a result of our bottom-up stock selection process, the Fund's positioning at May 31, 2008 was unchanged from the beginning of the annual period. The Fund's largest sector weights, in decreasing order, were financials, consumer staples and health care. We continue to avoid energy and utility stocks, based on our assessment of risk and potential reward. The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results. 8 FDP SERIES, INC. MAY 31, 2008 Van Kampen Value FDP Fund Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Fund's Institutional and Investor A Shares compared to growth of an investment in the Russell 1000(R) Value Index. Values are from July 27, 2005 to May 2008. Russell Institutional Investor A 1000(R) Value Shares(1,3) Shares(1,3) Index(4) 7/27/05(2) $10,000 $9,475 $10,000 5/06 $10,556 $9,986 $10,813 5/07 $12,767 $12,048 $13,579 5/08 $10,961 $10,327 $11,912 1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including administration fees. 2 Commencement of operations. 3 Van Kampen Value FDP Fund invests, under normal market conditions, primarily in a portfolio of equity securities, consisting principally of common stocks. 4 This unmanaged broad-based Index is a subset of the Russell 1000 Index consisting of those Russell 1000 securities with lower price/book ratios and lower forecasted growth values. Russell 1000 is a registered trademark of the Frank Russell Company. Performance Summary for the Period Ended May 31, 2008
Average Annual Total Returns 1 ----------------------------------------- 1 Year Since Inception 2 ------------------- ------------------- 6-Month w/o sales w/sales w/o sales w/sales Total Returns charge charge charge charge - -------------------------------------------------------------------------------------------- Institutional .................... (8.49%) (14.15%) -- 3.28% -- Investor A ....................... (8.55) (14.29) (18.79%) 3.07 1.14% Investor B ....................... (8.95) (14.99) (18.71) 2.26 1.07 Investor C ....................... (8.93) (15.00) (15.82) 2.27 2.27 Russell 1000 Value Total Return .. (5.35) (12.28) -- 6.34 -- S&P 500 Index .................... (4.47) (6.70) --- 6.50 --- - --------------------------------------------------------------------------------------------
1 Assuming maximum sales charges. See "About Fund Performance" on page 12 for a detailed description of share classes, including any related sales charges and fees. 2 The Portfolio commenced operations on 7/27/05. Past performance is not indicative of future results. FDP SERIES, INC. MAY 31, 2008 9 Fund Summary Franklin Templeton Total Return FDP Fund Portfolio Management Commentary How did the Fund perform? o The Fund posted positive returns amid a challenging investment backdrop, but underperformed the benchmark Lehman Brothers U.S. Aggregate Index for the 12-month period ended May 31, 2008. What factors influenced performance? o Portfolio exposure to mortgage-related sectors was the primary detractor from Fund performance relative to the benchmark, as these issues underperformed amid considerable widening in yield spreads during the annual period. o In contrast, the Fund's non-U.S. dollar investments generated strong relative returns, as many foreign currencies appreciated versus the U.S. dollar. Describe recent portfolio activity. o Overall, our major sector weightings did not change dramatically over the past 12 months. We continued to emphasize higher-quality securitized sectors, as we searched for fundamentally sound bonds at attractive yields. Recently, we favored higher-quality commercial mortgaged-backed and other securitized debt securities, where we believed fundamentals were solid, at the expense of our U.S. agency and Treasury sector investments. o Within the investment grade credit markets, we favored the financials sector. As spreads widened during the fiscal year, we believed valuations became more attractive and recent capital raising activities helped support sector fundamentals. In the below-investment grade markets, we found distressed senior-secured floating rate debt attractive, as fundamentals generally remained intact. o Throughout the annual period, we maintained a diversified portfolio of international bonds and currencies, as we found opportunities in locally denominated debt of Asian and non-euro European countries. However, given the recent strength of many currencies versus the U.S. dollar, we reallocated our net non-dollar exposure within the European region. Describe Fund positioning at period-end. o During the past 12 months, financial markets were volatile, underpinned by fear and uncertainty as credit conditions tightened, employment weakened and the housing market continued to deteriorate. Elevated investor concerns triggered a flight to safety, as investors shed riskier assets in favor of U.S. Treasury issues and spreads on non-Treasury sectors widened. Liquidity somewhat improved late in the annual period, although overall economic concerns and a supply backlog continued to weigh on investor sentiment. o At period-end, the Fund was overweight relative to the benchmark in mortgage-related sectors, investment grade financials sector corporate bonds, senior syndicated bank loans and non-U.S. dollar fixed income investments. The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results. 10 FDP SERIES, INC. MAY 31, 2008 Franklin Templeton Total Return FDP Fund Total Return Based on a $10,000 Investment A line graph depicting the growth of an investment in the Fund's Institutional and Investor A Shares compared to growth of an investment in the Lehman Brothers U.S. Aggregate Index. Values are from July 27, 2005 to November 2007. Lehman Brothers Institutional Investor A U.S. Aggregate Shares(1,3) Shares(1,3) Index(4) 7/27/05(2) $10,000 $9,600 $10,000 5/06 $9,945 $9,528 $9,987 5/07 $10,639 $10,166 $10,652 5/08 $11,113 $10,593 $11,386 1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including administration fees. 2 Commencement of operations. 3 Franklin Templeton Total Return FDP Fund invests, under normal market conditions, at least 85% of its assets in investment grade debt securities. 4 This unmanaged market-weighted Index is comprised of investment grade corporate bonds (rated BBB or better), mortgages and U.S. Treasury and government agency issues with at least one year to maturity. Performance Summary for the Period Ended May 31, 2008
Average Annual Total Returns 1 --------------------------------------------------- 1 Year Since Inception 2 ---------------------- ---------------------- Standardized 6-Month w/o sales w/sales w/o sales w/sales 30-Day Yields Total Returns charge charge charge charge - ------------------------------------------------------------------------------------------------------------------------------------ Institutional ............................. 4.08% 0.90% 4.45% -- 3.78% -- Investor A ................................ 3.67 0.78 4.20 0.03% 3.52 2.05% Investor B ................................ 3.29 0.51 3.66 (0.32) 2.98 2.00 Investor C ................................ 3.26 0.50 3.62 2.63 2.94 2.94 Lehman Brothers U.S. Aggregate Index ...... -- 1.49 6.89 -- 4.67 -- - ------------------------------------------------------------------------------------------------------------------------------------
1 Assuming maximum sales charges. See "About Fund Performance" on page 12 for a detailed description of share classes, including any related sales charges and fees. 2 The Portfolio commenced operations on 7/27/05. Past performance is not indicative of future results. FDP SERIES, INC. MAY 31, 2008 11 About Fund Performance Shares are only available for purchase through the FDP Service. For MFS Research International FDP Fund, Marsico Growth FDP Fund and Van Kampen Value FDP Fund: o Institutional Shares are not subject to any sales charge. Institutional Shares bear no ongoing distribution or service fees and are available only to eligible investors. o Investor A Shares incur a maximum initial sales charge (front-end load) of 5.25% and a service fee of 0.25% per year (but no distribution fee). o Investor B Shares are subject to a maximum contingent deferred sales charge of 4.50% declining to 0% after six years. In addition, Investor B Shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares automatically convert to Investor A Shares after approximately eight years. (There is no initial sales charge for automatic share conversions.) o Investor C Shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. In addition, Investor C Shares are subject to a 1% contingent deferred sales charge if redeemed within one year of purchase. For Franklin Templeton Total Return FDP Fund: o Institutional Shares are not subject to any sales charge. Institutional Shares bear no ongoing distribution or service fees and are available only to eligible investors. o Investor A Shares incur a maximum initial sales charge (front-end load) of 4% and a service fee of 0.25% per year (but no distribution fee). o Investor B Shares are subject to a maximum contingent deferred sales charge of 4% declining to 0% after six years. In addition, Investor B Shares are subject to a distribution fee of 0.50% per year and a service fee of 0.25% per year. These shares automatically convert to Investor A Shares after approximately 10 years. (There is no initial sales charge for automatic share conversions.) o Investor C Shares are subject to a distribution fee of 0.55% per year and a service fee of 0.25% per year. In addition, Investor C Shares are subject to a 1% contingent deferred sales charge if redeemed within one year of purchase. Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. For the MFS Research International FDP Fund only, the Fund may charge a 2% redemption fee for sales or exchanges of shares within 30 days of purchase or exchange. Performance data does not reflect this potential fee. Figures shown in the performance tables on pages 5 - 11 assume reinvestment of all dividends and capital gain distributions, if any, at net asset value on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Funds' Manager waived a portion of its fees. Without such waiver, the Funds' performance would have been lower. 12 FDP SERIES, INC. MAY 31, 2008 Disclosure of Expenses Shareholders of these Funds may incur the following charges: (a) expenses related to transactions, including sales charges, redemption fees and exchange fees; and (b) operating expenses including advisory fees, distribution fees including 12b-1 fees and other Fund expenses. The expense examples on pages 13 and 14 (which are based on a hypothetical investment of $1,000 invested on December 1, 2007 and held through May 31, 2008) are intended to assist shareholders both in calculating expenses based on an investment in these Funds and in comparing these expenses with similar costs of investing in other mutual funds. The tables provide information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled "Expenses Paid During the Period." The tables also provide information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in these Funds and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds' shareholder reports. The expenses shown in the tables are intended to highlight shareholders' ongoing costs only and do not reflect any transactional expenses, such as sales charges, redemption fees or exchange fees. Therefore, the hypothetical tables are useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher. MFS Research International FDP Fund
Actual Hypothetical 2 ------------------------------------------------------- ----------------------------------------------------- Beginning Ending Beginning Ending Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid December 1, 2007 May 31, 2008 During the Period 1 December 1, 2007 May 31, 2008 During the Period 1 - ------------------------------------------------------------------------------------------------------------------------------------ Institutional ...... $1,000 $ 980.70 $ 6.01 $1,000 $1,018.83 $ 6.12 Investor A ......... $1,000 $ 979.30 $ 7.18 $1,000 $1,017.64 $ 7.32 Investor B ......... $1,000 $ 975.50 $ 10.95 $1,000 $1,013.81 $ 11.17 Investor C ......... $1,000 $ 975.70 $ 10.91 $1,000 $1,013.86 $ 11.12 - ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.94% for Institutional, 1.18% for Investor A, 1.96% for Investor B and 1.94% for Investor C), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown). 2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366. Marsico Growth FDP Fund
Actual Hypothetical 2 ------------------------------------------------------- ----------------------------------------------------- Beginning Ending Beginning Ending Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid December 1, 2007 May 31, 2008 During the Period 1 December 1, 2007 May 31, 2008 During the Period 1 - ------------------------------------------------------------------------------------------------------------------------------------ Institutional ...... $1,000 $ 924.00 $ 5.45 $1,000 $1,019.23 $ 5.72 Investor A ......... $1,000 $ 922.80 $ 6.60 $1,000 $1,018.04 $ 6.92 Investor B ......... $1,000 $ 919.90 $ 10.31 $1,000 $1,014.16 $ 10.82 Investor C ......... $1,000 $ 919.90 $ 10.26 $1,000 $1,014.21 $ 10.77 - ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.66% for Institutional, 0.94% for Investor A, 1.48% for Investor B and 1.51% for Investor C), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown). 2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366. FDP SERIES, INC. MAY 31, 2008 13 Disclosure of Expenses (concluded) Van Kampen Value FDP Fund
Actual Hypothetical 2 ------------------------------------------------------- ----------------------------------------------------- Beginning Ending Beginning Ending Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid December 1, 2007 May 31, 2008 During the Period 1 December 1, 2007 May 31, 2008 During the Period 1 - ------------------------------------------------------------------------------------------------------------------------------------ Institutional ...... $1,000 $ 915.10 $ 4.48 $1,000 $1,020.23 $ 4.72 Investor A ......... $1,000 $ 914.50 $ 5.62 $1,000 $1,019.03 $ 5.92 Investor B ......... $1,000 $ 910.50 $ 9.31 $1,000 $1,015.15 $ 9.82 Investor C ......... $1,000 $ 910.70 $ 9.22 $1,000 $1,015.25 $ 9.72 - ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.94% for Institutional, 1.18% for Investor A, 1.96% for Investor B and 1.94% for Investor C), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown). 2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366. Franklin Templeton Total Return FDP Fund
Actual Hypothetical 2 ------------------------------------------------------- ----------------------------------------------------- Beginning Ending Beginning Ending Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid December 1, 2007 May 31, 2008 During the Period 1 December 1, 2007 May 31, 2008 During the Period 1 - ------------------------------------------------------------------------------------------------------------------------------------ Institutional ...... $1,000 $1,009.00 $ 3.30 $1,000 $1,021.62 $ 3.32 Investor A ......... $1,000 $1,007.80 $ 4.69 $1,000 $1,020.23 $ 4.72 Investor B ......... $1,000 $1,005.10 $ 7.38 $1,000 $1,017.54 $ 7.42 Investor C ......... $1,000 $1,005.00 $ 7.53 $1,000 $1,017.39 $ 7.57 - ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.66% for Institutional, 0.94% for Investor A, 1.48% for Investor B and 1.51% for Investor C), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown). 2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366. 14 FDP SERIES, INC. MAY 31, 2008 Portfolio Information as of May 31, 2008 Geographic Allocation Percent of MFS Research International FDP Fund Long-Term Investments - -------------------------------------------------------------------------------- Japan ................................................................. 17% United Kingdom ........................................................ 14 Germany ............................................................... 11 France ................................................................ 11 Switzerland ........................................................... 7 Italy ................................................................. 6 Netherlands ........................................................... 4 Brazil ................................................................ 4 Mexico ................................................................ 3 Singapore ............................................................. 3 Spain ................................................................. 3 Norway ................................................................ 2 Australia ............................................................. 2 Hong Kong ............................................................. 2 India ................................................................. 2 Ireland ............................................................... 2 Belgium ............................................................... 2 South Korea ........................................................... 1 Austria ............................................................... 1 Greece ................................................................ 1 Russia ................................................................ 1 Sweden ................................................................ 1 - -------------------------------------------------------------------------------- Ten Largest Holdings Percent of MFS Research International FDP Fund Net Assets - -------------------------------------------------------------------------------- E.ON AG ............................................................... 3% Total SA .............................................................. 3 BHP Billiton Plc ...................................................... 3 Nestle SA Registered Shares ........................................... 2 Roche Holding AG ...................................................... 2 Akzo Nobel NV ......................................................... 2 Statoilhydro ASA ...................................................... 2 Vodafone Group Plc .................................................... 2 Unicredit SpA ......................................................... 2 BNP Paribas SA ........................................................ 2 - -------------------------------------------------------------------------------- Ten Largest Holdings Percent of Marsico Growth FDP Fund Net Assets - -------------------------------------------------------------------------------- McDonald's Corp. ...................................................... 5% MasterCard, Inc. Class A .............................................. 4 Union Pacific Corp. ................................................... 4 Google, Inc. Class A .................................................. 4 Lockheed Martin Corp. ................................................. 4 Monsanto Co. .......................................................... 4 The Goldman Sachs Group, Inc. ......................................... 4 Schlumberger Ltd. ..................................................... 3 Petroleo Brasileiro SA ................................................ 3 Apple, Inc. ........................................................... 3 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Percent of Van Kampen Value FDP Fund Net Assets - -------------------------------------------------------------------------------- Comcast Corp. Class A ................................................. 4% International Paper Co. ............................................... 4 Wal-Mart Stores, Inc. ................................................. 4 Bank of America Corp. ................................................. 3 Verizon Communications, Inc. .......................................... 3 Viacom, Inc. Class B .................................................. 3 Chubb Corp. ........................................................... 3 Time Warner, Inc. ..................................................... 3 Wyeth ................................................................. 3 Kraft Foods, Inc. ..................................................... 2 - -------------------------------------------------------------------------------- FDP SERIES, INC. MAY 31, 2008 15 Portfolio Information May 31, 2008 (concluded) Sector Representation Percent of MFS Research International FDP Fund Long-Term Investments - -------------------------------------------------------------------------------- Financials ............................................................ 25% Industrials ........................................................... 13 Materials ............................................................. 11 Consumer Discretionary ................................................ 10 Energy ................................................................ 10 Information Technology ................................................ 8 Consumer Staples ...................................................... 6 Health Care ........................................................... 6 Utilities ............................................................. 6 Telecommunications Services ........................................... 5 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Percent of Marsico Growth FDP Fund Long-Term Investments - -------------------------------------------------------------------------------- Industrials ........................................................... 16% Financials ............................................................ 15 Consumer Discretionary ................................................ 14 Information Technology ................................................ 14 Energy ................................................................ 13 Materials ............................................................. 9 Telecommunication Services ............................................ 9 Consumer Staples ...................................................... 5 Health Care ........................................................... 5 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Percent of Van Kampen Value FDP Fund Long-Term Investments - -------------------------------------------------------------------------------- Financials ............................................................ 24% Consumer Staples ...................................................... 20 Consumer Discretionary ................................................ 17 Health Care ........................................................... 15 Information Technology ................................................ 8 Materials ............................................................. 8 Telecommunication Services ............................................ 6 Industrials ........................................................... 2 Five Largest Industries Percent of MFS Research International FDP Fund Net Assets - -------------------------------------------------------------------------------- Commercial Banks ...................................................... 16% Oil, Gas & Consumable Fuels ........................................... 10 Chemicals ............................................................. 5 Metals & Mining ....................................................... 5 Pharmaceuticals ....................................................... 5 - -------------------------------------------------------------------------------- Five Largest Industries Percent of Marsico Growth FDP Fund Net Assets - -------------------------------------------------------------------------------- Hotels, Restaurants & Leisure ......................................... 12% Chemicals ............................................................. 8 Energy Equipment & Services ........................................... 8 Aerospace & Defense ................................................... 7 Road & Rail ........................................................... 7 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Percent of Van Kampen Value FDP Fund Net Assets - -------------------------------------------------------------------------------- Media ................................................................. 13% Pharmaceuticals ....................................................... 10 Insurance ............................................................. 8 Diversified Financial Services ........................................ 8 Food Products ......................................................... 7 Quality Ratings by S&P/Moody's 1 Percent of Franklin Templeton Total Return FDP Fund Long-Term Investments - -------------------------------------------------------------------------------- AAA/Aaa ............................................................... 60% AA/Aa ................................................................. 4 A/A ................................................................... 9 BBB/Baa ............................................................... 12 B/B ................................................................... 2 Not Rated ............................................................. 13 - -------------------------------------------------------------------------------- 1 Using the higher of Standard & Poors's or Moody's Investors Service ratings. Asset Mix Percent of Franklin Templeton Total Return FDP Fund Long-Term Investments - -------------------------------------------------------------------------------- U.S. Government Agency Mortgage-Backed Securities ..................... 36% Corporate Bonds ....................................................... 24 Asset-Backed Securities ............................................... 11 Non-U.S. Government Agency Mortgage-Backed Securities ................. 11 Foreign Government Obligations ........................................ 7 U.S. Government Obligations ........................................... 4 Floating Rate Loan Interests .......................................... 3 Preferred Securities .................................................. 2 U.S. Government Agency Mortgage-Backed Securities -- Collateralized Mortgage Obligations ................................. 2 - -------------------------------------------------------------------------------- For Fund compliance purposes, the Fund's sector and industry classifications refer to any one or more of the sector and industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease. These industry classifications are unaudited. 16 FDP SERIES, INC. MAY 31, 2008 Schedule of Investments May 31, 2008 MFS Research International FDP Fund (Percentages shown are based on Net Assets) Common Stocks Shares Value =============================================================================== Australia -- 2.0% Capital Markets -- 0.5% Macquarie Group Ltd. 17,034 $ 887,323 - ------------------------------------------------------------------------------- Commercial Services & Supplies -- 0.7% Brambles Ltd. 175,530 1,375,732 - ------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels -- 0.5% Paladin Resources Ltd. (a) 171,347 956,441 - ------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods -- 0.3% Billabong International Ltd. 53,756 620,673 - ------------------------------------------------------------------------------- Total Common Stocks in Australia 3,840,169 =============================================================================== Austria -- 1.2% Commercial Banks -- 1.2% Erste Bank der Oesterreichischen Sparkassen AG 31,018 2,367,923 - ------------------------------------------------------------------------------- Total Common Stocks in Austria 2,367,923 =============================================================================== Belgium -- 1.5% Diversified Financial Services -- 1.5% Fortis 120,580 2,952,689 - ------------------------------------------------------------------------------- Total Common Stocks in Belgium 2,952,689 =============================================================================== Brazil -- 3.6% Building Products -- 0.2% Duratex SA (Preference Shares) 14,300 325,300 - ------------------------------------------------------------------------------- Commercial Banks -- 1.2% Uniao de Bancos Brasileiros SA (b) 15,090 2,367,168 - ------------------------------------------------------------------------------- Consumer Finance -- 0.1% CSU Cardsystem SA 57,880 174,369 - ------------------------------------------------------------------------------- Internet Software & Services -- 0.2% Universo Online SA (Preference Shares) 83,900 479,723 - ------------------------------------------------------------------------------- Metals & Mining -- 1.0% Cia Vale do Rio Doce 51,500 2,074,248 - ------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels -- 0.9% Petroleo Brasileiro SA (b) 23,630 1,665,915 - ------------------------------------------------------------------------------- Total Common Stocks in Brazil 7,086,723 =============================================================================== Canada -- 0.6% Oil, Gas & Consumable Fuels -- 0.3% Talisman Energy, Inc. 27,690 635,956 - ------------------------------------------------------------------------------- Wireless Telecommunication Services -- 0.3% Rogers Communications, Inc. Class B 14,190 624,097 - ------------------------------------------------------------------------------- Total Common Stocks in Canada 1,260,053 =============================================================================== France -- 10.6% Auto Components -- 0.6% Compagnie Generale des Etablissements Michelin 14,540 1,300,678 - ------------------------------------------------------------------------------- Commercial Banks -- 1.9% BNP Paribas SA 37,018 3,820,552 - ------------------------------------------------------------------------------- Electrical Equipment -- 0.9% Schneider Electric SA 14,321 1,798,870 - ------------------------------------------------------------------------------- Gas Utilities -- 0.6% Gaz de France SA 17,130 1,166,998 - ------------------------------------------------------------------------------- Insurance -- 1.7% AXA SA 93,020 3,286,481 - ------------------------------------------------------------------------------- Multi-Utilities -- 0.7% Suez SA 18,190 1,355,520 - ------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels -- 2.9% Total SA 65,150 5,685,092 - ------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods -- 1.3% LVMH Moet Hennessy Louis Vuitton SA 21,180 2,478,216 - ------------------------------------------------------------------------------- Total Common Stocks in France 20,892,407 =============================================================================== Germany -- 11.4% Automobiles -- 0.7% Bayerische Motoren Werke AG 24,960 1,478,309 - ------------------------------------------------------------------------------- Chemicals -- 2.9% Bayer AG 25,470 2,258,611 Linde AG 21,830 3,280,375 ------------ 5,538,986 - ------------------------------------------------------------------------------- Electric Utilities -- 3.0% E.ON AG 27,790 5,912,692 - ------------------------------------------------------------------------------- Industrial Conglomerates -- 1.8% Siemens AG 31,890 3,617,752 - ------------------------------------------------------------------------------- Pharmaceuticals -- 1.4% Merck KGaA 19,470 2,737,032 - ------------------------------------------------------------------------------- Textiles, Apparel & Luxury Goods -- 1.6% Adidas-Salomon AG 43,310 3,053,625 - ------------------------------------------------------------------------------- Total Common Stocks in Germany 22,338,396 =============================================================================== Greece -- 1.1% Commercial Banks -- 1.1% Bank of Cyprus Public Co. Ltd. 155,950 2,173,857 - ------------------------------------------------------------------------------- Total Common Stocks in Greece 2,173,857 =============================================================================== Hong Kong -- 1.9% Commercial Banks --1.9% BOC Hong Kong Holdings Ltd. 729,000 1,862,692 Bank of Communications Co. Ltd. 1,483,000 1,942,139 - ------------------------------------------------------------------------------- Total Common Stocks in Hong Kong 3,804,831 =============================================================================== India -- 1.9% IT Services -- 1.6% HCL Technologies Ltd. 55,120 408,450 Satyam Computer Services Ltd. 217,380 2,680,448 ------------ 3,088,898 - ------------------------------------------------------------------------------- Independent Power Producers & Energy Traders -- 0.3% National Thermal Power Corp. Ltd. 162,552 659,895 - ------------------------------------------------------------------------------- Total Common Stocks in India 3,748,793 =============================================================================== See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 17 Schedule of Investments (continued) MFS Research International FDP Fund (Percentages shown are based on Net Assets) Common Stocks Shares Value =============================================================================== Ireland -- 1.5% Building Products -- 0.6% CRH Plc 32,930 $ 1,210,067 - ------------------------------------------------------------------------------- Commercial Banks -- 0.9% Anglo Irish Bank Corp. Plc 141,742 1,808,215 - ------------------------------------------------------------------------------- Total Common Stocks in Ireland 3,018,282 =============================================================================== Israel -- 0.3% Chemicals -- 0.3% Makhteshim-Agan Industries Ltd. 66,840 626,164 - ------------------------------------------------------------------------------- Total Common Stocks in Israel 626,164 =============================================================================== Italy -- 5.6% Commercial Banks -- 3.5% Unicredit SpA 560,393 3,917,119 Unione Di Banche Italiane SPCA 110,532 2,847,646 ------------ 6,764,765 - ------------------------------------------------------------------------------- Energy Equipment & Services -- 0.5% Saipem SpA 21,530 988,776 - ------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels -- 1.6% Eni SpA 78,520 3,198,067 - ------------------------------------------------------------------------------- Total Common Stocks in Italy 10,951,608 =============================================================================== Japan -- 16.4% Air Freight & Logistics -- 1.0% Yamato Transport Co., Ltd. 141,000 1,964,798 - ------------------------------------------------------------------------------- Auto Components -- 0.8% Bridgestone Corp. 91,100 1,554,628 - ------------------------------------------------------------------------------- Capital Markets -- 1.3% Daiwa Securities Group, Inc. 254,000 2,544,337 - ------------------------------------------------------------------------------- Commercial Banks -- 1.4% Sumitomo Mitsui Financial Group, Inc. 329 2,830,611 - ------------------------------------------------------------------------------- Construction & Engineering -- 0.7% JGC Corp. 60,000 1,323,278 - ------------------------------------------------------------------------------- Consumer Finance -- 0.6% Aeon Credit Service Co., Ltd. 87,300 1,254,596 - ------------------------------------------------------------------------------- Distributors -- 0.2% JFE Shoji Holdings, Inc. 44,000 346,841 - ------------------------------------------------------------------------------- Electronic Equipment & Instruments -- 1.3% Hoya Corp. 18,700 519,740 Nippon Electric Glass Co. 35,000 680,611 Omron Corp. 57,200 1,237,109 ------------ 2,437,460 - ------------------------------------------------------------------------------- Household Products -- 0.8% Kao Corp. 61,000 1,591,254 - ------------------------------------------------------------------------------- Machinery -- 1.9% GLORY Ltd. 62,900 1,476,736 Komatsu Ltd. 72,700 2,303,339 ------------ 3,780,075 - ------------------------------------------------------------------------------- Office Electronics -- 2.1% Konica Minolta Holdings, Inc. 81,000 1,511,355 Ricoh Co., Ltd. 133,000 2,448,805 ------------ 3,960,160 - ------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels -- 0.7% Inpex Holdings, Inc. 110 1,387,782 - ------------------------------------------------------------------------------- Pharmaceuticals -- 0.6% Astellas Pharma, Inc. 29,800 1,260,747 - ------------------------------------------------------------------------------- Road & Rail -- 1.0% East Japan Railway Co. 248 1,914,931 - ------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment -- 0.6% Tokyo Electron Ltd. 16,500 1,128,486 - ------------------------------------------------------------------------------- Trading Companies & Distributors -- 0.9% Mitsubishi Corp. 41,400 1,429,482 Mitsui & Co., Ltd. 19,000 465,898 ------------ 1,895,380 - ------------------------------------------------------------------------------- Wireless Telecommunication Services -- 0.5% KDDI Corp. 157 1,088,664 - ------------------------------------------------------------------------------- Total Common Stocks in Japan 32,264,028 =============================================================================== Mexico -- 2.9% Building Products -- 0.1% Corporacion Moctezuma, SAB de CV 38,300 103,918 - ------------------------------------------------------------------------------- Household Durables -- 0.2% Sare Holding, SAB de CV Class B (a) 69,900 104,311 Urbi, Desarrollos Urbanos, SA de CV (a) 71,920 275,283 ------------ 379,594 - ------------------------------------------------------------------------------- Household Products -- 0.5% Kimberly-Clark de Mexico, SA de CV 204,460 960,911 - ------------------------------------------------------------------------------- Media -- 1.2% Grupo Televisa, SA (b) 86,800 2,274,160 - ------------------------------------------------------------------------------- Transportation Infrastructure -- 0.0% Grupo Aeroportuario del Pacifico, SA de CV (b) 2,400 84,912 - ------------------------------------------------------------------------------- Wireless Telecommunication Services -- 0.9% America Movil, SA de CV (b) 29,900 1,787,123 - ------------------------------------------------------------------------------- Total Common Stocks in Mexico 5,590,618 =============================================================================== Netherlands -- 4.4% Air Freight & Logistics -- 0.5% TNT NV 22,360 897,141 - ------------------------------------------------------------------------------- Beverages -- 1.1% Heineken NV 37,440 2,199,989 - ------------------------------------------------------------------------------- Chemicals -- 2.1% Akzo Nobel NV 48,440 4,100,346 - ------------------------------------------------------------------------------- Industrial Conglomerates -- 0.7% Koninklijke Philips Electronics NV 35,210 1,351,913 - ------------------------------------------------------------------------------- Total Common Stocks in the Netherlands 8,549,389 =============================================================================== See Notes to Financial Statements. 18 FDP SERIES, INC. MAY 31, 2008 Schedule of Investments (continued) MFS Research International FDP Fund (Percentages shown are based on Net Assets) Common Stocks Shares Value =============================================================================== Norway -- 2.1% Oil, Gas & Consumable Fuels -- 2.1% Statoilhydro ASA 104,090 $ 4,038,291 - ------------------------------------------------------------------------------- Total Common Stocks in Norway 4,038,291 =============================================================================== Russia -- 0.9% Oil, Gas & Consumable Fuels -- 0.9% OAO Gazprom (b) 28,920 1,743,876 - ------------------------------------------------------------------------------- Total Common Stocks in Russia 1,743,876 =============================================================================== Singapore -- 2.8% Commercial Banks -- 1.3% DBS Group Holdings Ltd. 172,000 2,463,369 - ------------------------------------------------------------------------------- Electronic Equipment & Instruments -- 0.4% Venture Corp. Ltd. 117,000 861,033 - ------------------------------------------------------------------------------- Real Estate Management & Development -- 1.1% CapitaLand Ltd. 440,000 2,116,705 - ------------------------------------------------------------------------------- Total Common Stocks in Singapore 5,441,107 =============================================================================== South Africa -- 0.6% Commercial Banks -- 0.4% Standard Bank Group Ltd. 80,439 878,468 - ------------------------------------------------------------------------------- Wireless Telecommunication Services -- 0.2% MTN Group Ltd. 19,180 383,613 - ------------------------------------------------------------------------------- Total Common Stocks in South Africa 1,262,081 =============================================================================== South Korea -- 1.3% Electronic Equipment & Instruments -- 0.4% LS Industrial Systems Co. Ltd. 15,150 808,941 - ------------------------------------------------------------------------------- Food Products -- 0.2% Nong Shim Co., Ltd. 1,733 303,681 - ------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment -- 0.7% Samsung Electronics Co., Ltd. 2,025 1,456,750 - ------------------------------------------------------------------------------- Total Common Stocks in South Korea 2,569,372 =============================================================================== Spain -- 2.5% Diversified Telecommunication Services -- 1.7% Telefonica SA 116,830 3,353,423 - ------------------------------------------------------------------------------- Specialty Retail -- 0.8% Inditex SA 32,940 1,620,403 - ------------------------------------------------------------------------------- Total Common Stocks in Spain 4,973,826 =============================================================================== Sweden -- 0.8% Building Products -- 0.8% Assa Abloy AB Series B 87,280 1,512,727 - ------------------------------------------------------------------------------- Total Common Stocks in Sweden 1,512,727 =============================================================================== Switzerland -- 7.3% Biotechnology -- 0.4% Actelion Ltd. (a) 16,785 917,156 - ------------------------------------------------------------------------------- Building Products -- 1.0% Geberit AG 11,086 1,880,551 - ------------------------------------------------------------------------------- Capital Markets -- 0.4% Julius Baer Holding AG Class B 9,614 786,831 - ------------------------------------------------------------------------------- Food Products -- 2.4% Nestle SA Registered Shares 9,445 4,644,339 - ------------------------------------------------------------------------------- Pharmaceuticals -- 3.1% Novartis AG Registered Shares 36,070 1,894,778 Roche Holding AG 24,380 4,203,489 - ------------------------------------------------------------------------------- 6,098,267 ------------ Total Common Stocks in Switzerland 14,327,144 =============================================================================== Taiwan -- 0.3% Semiconductors & Semiconductor Equipment -- 0.3% Taiwan Semiconductor Manufacturing Co., Ltd. 277,000 597,698 - ------------------------------------------------------------------------------- Total Common Stocks in Taiwan 597,698 =============================================================================== United Kingdom -- 13.8% Beverages -- 0.6% Diageo Plc 61,400 1,198,031 - ------------------------------------------------------------------------------- Commercial Banks -- 2.5% Barclays Plc 370,320 2,750,881 Standard Chartered Plc 55,296 2,054,894 ------------ 4,805,775 - ------------------------------------------------------------------------------- Household Products -- 0.9% Reckitt Benckiser Plc 28,760 1,694,312 - ------------------------------------------------------------------------------- Independent Power Producers & Energy Traders -- 0.2% Drax Group Plc 35,382 474,498 - ------------------------------------------------------------------------------- Insurance -- 0.7% Old Mutual Plc 594,800 1,378,543 - ------------------------------------------------------------------------------- Media -- 1.5% WPP Group Plc 249,770 3,025,521 - ------------------------------------------------------------------------------- Metals & Mining -- 4.1% Anglo American Plc 15,340 1,038,934 BHP Billiton Plc 144,210 5,467,651 Rio Tinto Plc Registered Shares 13,350 1,601,249 ------------ 8,107,834 - ------------------------------------------------------------------------------- Multiline Retail -- 0.3% Next Plc 22,380 512,929 - ------------------------------------------------------------------------------- Specialty Retail -- 0.5% Kingfisher Plc 327,630 890,433 - ------------------------------------------------------------------------------- Trading Companies & Distributors -- 0.5% Bunzl Plc 66,040 924,236 - ------------------------------------------------------------------------------- Wireless Telecommunication Services -- 2.0% Vodafone Group Plc 1,246,030 4,004,761 - ------------------------------------------------------------------------------- Total Common Stocks in the United Kingdom 27,016,873 =============================================================================== Total Investments (Cost -- $172,114,071*) -- 99.3% 194,948,925 Other Assets Less Liabilities -- 0.7% 1,472,593 ------------ Net Assets -- 100.0% $196,421,518 ============ See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 19 Schedule of Investments (concluded) MFS Research International FDP Fund * The cost and unrealized appreciation (depreciation) of investments as of May 31, 2008, as computed for federal income tax purposes, were as follows: Aggregate cost ........................................... $ 173,089,965 ============= Gross unrealized appreciation ............................ $ 29,655,797 Gross unrealized depreciation ............................ (7,796,837) ------------- Net unrealized appreciation .............................. $ 21,858,960 ============= (a) Non-income producing security. (b) Depositary receipts. o For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. These industry classifications are unaudited. See Notes to Financial Statements. 20 FDP SERIES, INC. MAY 31, 2008 Schedule of Investments May 31, 2008 Marsico Growth FDP Fund (Percentages shown are based on Net Assets) Common Stocks Shares Value =============================================================================== Aerospace & Defense -- 7.1% General Dynamics Corp. 51,839 $ 4,776,964 Lockheed Martin Corp. 54,828 6,000,376 Precision Castparts Corp. 6,149 742,799 ------------ 11,520,139 - ------------------------------------------------------------------------------- Beverages -- 2.2% The Coca-Cola Co. 31,198 1,786,397 Heineken NV (a) 62,912 1,846,354 ------------ 3,632,751 - ------------------------------------------------------------------------------- Biotechnology -- 2.3% Genentech, Inc. (b) 53,586 3,797,640 - ------------------------------------------------------------------------------- Capital Markets -- 3.5% The Goldman Sachs Group, Inc. 32,119 5,666,113 - ------------------------------------------------------------------------------- Chemicals -- 8.4% Air Products & Chemicals, Inc. 16,682 1,700,229 Monsanto Co. 44,781 5,705,099 Potash Corp. of Saskatchewan, Inc. 11,567 2,302,643 Praxair, Inc. 41,693 3,963,337 ------------ 13,671,308 - ------------------------------------------------------------------------------- Commercial Banks -- 5.1% Industrial & Commercial Bank of China 6,823,000 5,097,207 Wells Fargo & Co. 115,543 3,185,521 ------------ 8,282,728 - ------------------------------------------------------------------------------- Communications Equipment -- 0.9% QUALCOMM, Inc. 31,048 1,507,070 - ------------------------------------------------------------------------------- Computers & Peripherals -- 3.1% Apple, Inc. (b) 27,047 5,105,121 - ------------------------------------------------------------------------------- Diversified Financial Services -- 3.5% Bank of America Corp. 43,214 1,469,708 JPMorgan Chase & Co. 98,711 4,244,573 ------------ 5,714,281 - ------------------------------------------------------------------------------- Diversified Telecommunication Services -- 2.6% AT&T Inc. 107,387 4,284,741 - ------------------------------------------------------------------------------- Electrical Equipment -- 0.5% Vestas Wind Systems A/S (b) 5,900 812,181 - ------------------------------------------------------------------------------- Energy Equipment & Services -- 7.9% Cameron International Corp. (b) 20,601 1,096,591 FMC Technologies, Inc. (b) 3,235 232,435 Schlumberger Ltd. 54,833 5,545,261 Transocean, Inc. (b) 32,193 4,835,067 Weatherford International Ltd. (b) 24,370 1,112,003 ------------ 12,821,357 - ------------------------------------------------------------------------------- Food & Staples Retailing -- 3.1% CVS/Caremark Corp. 88,690 3,795,045 Costco Wholesale Corp. 17,227 1,228,630 ------------ 5,023,675 - ------------------------------------------------------------------------------- Gas Utilities -- 0.3% Equitable Resources, Inc. 7,658 537,821 - ------------------------------------------------------------------------------- Health Care Providers & Services -- 2.3% UnitedHealth Group, Inc. 110,482 3,779,589 - ------------------------------------------------------------------------------- Hotels, Restaurants & Leisure -- 12.4% Las Vegas Sands Corp. (b) 48,455 3,364,715 MGM Mirage (b) 35,181 1,731,257 McDonald's Corp. 139,867 8,296,910 Starbucks Corp. (b) 16,282 296,170 Wynn Resorts Ltd. 32,672 3,268,180 Yum! Brands, Inc. 81,224 3,224,593 ------------ 20,181,825 - ------------------------------------------------------------------------------- IT Services -- 5.1% MasterCard, Inc. Class A 22,294 6,881,043 Visa, Inc. Class A (b) 17,233 1,488,242 ------------ 8,369,285 - ------------------------------------------------------------------------------- Industrial Conglomerates -- 0.9% McDermott International, Inc. (b) 24,436 1,515,765 - ------------------------------------------------------------------------------- Internet Software & Services -- 3.9% Google, Inc. Class A (b) 10,853 6,357,687 - ------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels -- 4.5% PetroHawk Energy Corp. (b) 20,615 605,669 Petroleo Brasileiro SA (a) 74,670 5,264,235 XTO Energy, Inc. 22,938 1,459,316 ------------ 7,329,220 - ------------------------------------------------------------------------------- Real Estate Management & Development -- 1.0% The St. Joe Co. 44,542 1,709,522 - ------------------------------------------------------------------------------- Road & Rail -- 6.5% CSX Corp. 23,529 1,624,913 Norfolk Southern Corp. 36,209 2,439,762 Union Pacific Corp. 80,394 6,617,230 ------------ 10,681,905 - ------------------------------------------------------------------------------- Specialty Retail -- 1.2% Lowe's Cos., Inc. 81,737 1,961,688 - ------------------------------------------------------------------------------- Thrifts & Mortgage Finance -- 0.7% Washington Mutual, Inc. 128,262 1,156,923 - ------------------------------------------------------------------------------- Wireless Telecommunication Services -- 5.5% America Movil, SA de CV (a) 73,760 4,408,636 China Mobile Ltd. 311,500 4,578,358 ------------ 8,986,994 - ------------------------------------------------------------------------------- Total Common Stocks -- 94.5% 154,407,329 =============================================================================== =============================================================================== Preferred Stocks =============================================================================== Capital Markets -- 0.9% Lehman Brothers Holdings, Inc. Series P, 7.25% 1,378 1,495,130 - ------------------------------------------------------------------------------- Total Preferred Stocks -- 0.9% 1,495,130 =============================================================================== Total Long-Term Securities (Cost -- $128,447,035) -- 95.4% 155,902,459 =============================================================================== =============================================================================== Par Short-Term Securities (000) =============================================================================== Time Deposits -- 5.1% Bank of America London, 1.46%, 6/02/08 $8,374 8,374,242 - ------------------------------------------------------------------------------- Total Short-Term Securities (Cost -- $8,374,242) -- 5.1% 8,374,242 =============================================================================== Total Investments (Cost -- $136,821,277*) -- 100.5% 164,276,701 Liabilities in Excess of Other Assets -- (0.5%) (843,760) ------------ Net Assets -- 100.0% $163,432,941 ============ See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 21 Schedule of Investments (concluded) Marsico Growth FDP Fund * The cost and unrealized appreciation (depreciation) of investments as of May 31, 2008, as computed for federal income tax purposes, were as follows: Aggregate cost ........................................... $ 137,926,269 ============= Gross unrealized appreciation ............................ $ 31,046,546 Gross unrealized depreciation ............................ (4,696,114) ------------- Net unrealized appreciation .............................. $ 26,350,432 ============= (a) Depositary receipts. (b) Non-income producing security. o For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. These industry classifications are unaudited. See Notes to Financial Statements. 22 FDP SERIES, INC. MAY 31, 2008 Schedule of Investments May 31, 2008 Van Kampen Value FDP Fund (Percentages shown are based on Net Assets) Common Stocks Shares Value =============================================================================== Airlines -- 0.8% Southwest Airlines Co. 98,200 $ 1,282,492 =============================================================================== Beverages -- 3.3% Anheuser-Busch Cos., Inc. 22,500 1,292,850 The Coca-Cola Co. 50,700 2,903,082 Dr. Pepper Snapple Group, Inc. (c) 41,696 1,049,905 ------------ 5,245,837 =============================================================================== Capital Markets -- 2.1% The Bank of New York Mellon Corp. 74,317 3,309,336 =============================================================================== Chemicals -- 2.6% E.I. du Pont de Nemours & Co. 53,998 2,587,044 Rohm & Haas Co. 27,700 1,495,246 ------------ 4,082,290 =============================================================================== Commercial Banks -- 4.3% Barclays Plc (a) 4,600 137,678 The PNC Financial Services Group, Inc. (b) 500 32,125 U.S. Bancorp 37,400 1,241,306 Wachovia Corp. 132,000 3,141,600 Wells Fargo & Co. 79,800 2,200,086 ------------ 6,752,795 =============================================================================== Communications Equipment -- 0.8% Alcatel SA (a) 93,700 703,687 Telefonaktiebolaget LM Ericsson (a) 18,400 497,536 ------------ 1,201,223 =============================================================================== Computers & Peripherals -- 4.2% Dell, Inc. (c) 77,700 1,791,762 Hewlett-Packard Co. 23,000 1,082,380 International Business Machines Corp. 29,100 3,766,413 ------------ 6,640,555 =============================================================================== Diversified Financial Services -- 7.5% Bank of America Corp. 157,000 5,339,570 Citigroup, Inc. 173,900 3,806,671 JPMorgan Chase & Co. 63,200 2,717,600 ------------ 11,863,841 =============================================================================== Diversified Telecommunication Services -- 5.4% AT&T Inc. 82,000 3,271,800 Verizon Communications, Inc. 138,600 5,331,942 ------------ 8,603,742 =============================================================================== Food & Staples Retailing -- 5.2% CVS/Caremark Corp. 45,100 1,929,829 Wal-Mart Stores, Inc. 110,100 6,357,174 ------------ 8,287,003 =============================================================================== Food Products -- 6.9% Cadbury Plc (a) 63,028 3,383,973 Kraft Foods, Inc. 118,785 3,858,137 Sara Lee Corp. 42,200 581,516 Unilever NV (a) 93,700 3,069,612 ------------ 10,893,238 =============================================================================== Health Care Equipment & Supplies -- 0.8% Boston Scientific Corp. (c) 101,300 1,346,277 =============================================================================== Health Care Providers & Services -- 2.6% Cardinal Health, Inc. 50,900 2,877,886 UnitedHealth Group, Inc. 17,000 581,570 WellPoint, Inc. (c) 10,900 608,438 ------------ 4,067,894 =============================================================================== Household Products -- 1.5% Kimberly-Clark Corp. 22,500 1,435,500 The Procter & Gamble Co. 15,000 990,750 ------------ 2,426,250 =============================================================================== IT Services -- 1.0% Computer Sciences Corp. (c) 15,100 742,165 The Western Union Co. 35,000 827,400 ------------ 1,569,565 =============================================================================== Industrial Conglomerates -- 1.0% General Electric Co. 49,400 1,517,568 =============================================================================== Insurance -- 8.0% Aflac, Inc. 8,400 563,892 American International Group, Inc. 35,300 1,270,800 Berkshire Hathaway, Inc. Class B (c) 200 899,600 Chubb Corp. 87,900 4,725,504 Genworth Financial, Inc. Class A 28,500 629,850 Hartford Financial Services Group, Inc. 23,100 1,641,717 MetLife, Inc. 26,400 1,584,792 The Travelers Cos., Inc. 27,000 1,344,870 ------------ 12,661,025 =============================================================================== Internet & Catalog Retail -- 1.1% Liberty Media Holding Corp. -- Interactive (c) 100,750 1,711,743 =============================================================================== Internet Software & Services -- 0.4% eBay, Inc. (c) 23,200 696,232 =============================================================================== Media -- 12.5% Comcast Corp. Class A 290,302 6,531,795 Liberty Media Corp. -- Entertainment Class A (c) 59,760 1,613,520 News Corp. Class B 95,500 1,776,300 Time Warner, Inc. 290,300 4,609,964 Viacom, Inc. Class B (c) 144,150 5,163,453 ------------ 19,695,032 =============================================================================== Metals & Mining -- 0.4% Alcoa, Inc. 14,935 606,212 =============================================================================== Multiline Retail -- 1.2% J.C. Penney Co., Inc. 23,300 937,592 Macy's, Inc. 40,600 961,002 ------------ 1,898,594 =============================================================================== Paper & Forest Products -- 4.0% International Paper Co. 234,500 6,383,090 =============================================================================== See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 23 Schedule of Investments (concluded) Van Kampen Value FDP Fund (Percentages shown are based on Net Assets) Common Stocks Shares Value =============================================================================== Pharmaceuticals -- 10.3% Abbott Laboratories 28,700 $ 1,617,245 Bristol-Myers Squibb Co. 138,300 3,151,857 Eli Lilly & Co. 25,900 1,246,826 GlaxoSmithKline Plc (a) 14,500 645,685 Pfizer, Inc. 100,500 1,945,680 Roche Holding AG (a) 4,600 395,606 Schering-Plough Corp. 152,300 3,106,920 Wyeth 92,200 4,100,134 ------------ 16,209,953 =============================================================================== Semiconductors & Semiconductor Equipment -- 1.0% Intel Corp. 34,600 802,028 KLA-Tencor Corp. 16,300 751,756 ------------ 1,553,784 =============================================================================== Software -- 0.5% Microsoft Corp. 25,900 733,488 =============================================================================== Specialty Retail -- 1.1% Home Depot, Inc. 31,000 848,160 Lowe's Cos., Inc. 39,600 950,400 ------------ 1,798,560 =============================================================================== =============================================================================== Common Stocks Shares Value =============================================================================== Thrifts & Mortgage Finance -- 0.9% Fannie Mae 14,400 $ 389,088 Freddie Mac 38,300 973,586 ------------ 1,362,674 =============================================================================== Tobacco -- 1.6% Altria Group, Inc. 35,400 788,004 Philip Morris International, Inc. (c) 32,400 1,706,184 ------------ 2,494,188 =============================================================================== Total Common Stocks (Cost -- $154,957,531) -- 93.0% 146,894,481 =============================================================================== =============================================================================== Par Short-Term Securities (000) =============================================================================== U.S. Government Agency Obligations -- 6.5% Federal Home Loan Bank, 1.915%, 6/02/08 $ 10,200 10,198,923 =============================================================================== Time Deposits -- 0.1% Wells Fargo, 1.46%, 6/02/08 165 164,574 - ------------------------------------------------------------------------------- Total Short-Term Securities (Cost -- $10,363,497) -- 6.6% 10,363,497 =============================================================================== Total Investments (Cost -- $165,321,028*) -- 99.6% 157,257,978 Other Assets Less Liabilities -- 0.4% 681,982 ------------ Net Assets -- 100.0% $157,939,960 ============ * The cost and unrealized appreciation (depreciation) of investments as of May 31, 2008, as computed for federal income tax purposes, were as follows: Aggregate cost ........................................... $ 165,425,313 ============= Gross unrealized appreciation ............................ $ 11,103,504 Gross unrealized depreciation ............................ (19,270,839) ------------- Net unrealized depreciation .............................. $ (8,167,335) ============= (a) Depositary receipts. (b) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: -------------------------------------------------------------------------- Purchase Sale Realized Dividend Affiliate Cost Cost Gain Income -------------------------------------------------------------------------- The PNC Financial Services Group, Inc. -- -- -- $1,275 -------------------------------------------------------------------------- (c) Non-income producing security. o For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. These industry classifications are unaudited. See Notes to Financial Statements. 24 FDP SERIES, INC. MAY 31, 2008 Schedule of Investments May 31, 2008 Franklin Templeton Total Return FDP Fund (Percentages shown are based on Net Assets) Par Asset-Backed Securities (000) Value =============================================================================== ACE Securities Corp. Series 2005-HE7 Class A2B, 2.573%, 11/25/35 (a) $ 1,049 $ 1,039,045 American Express Credit Account Master Trust Series 2002-5 Class A, 2.684%, 2/15/12 (a) 4,100 4,085,854 Ameriquest Mortgage Securities, Inc. Series 2005-R9 Class A2B, 2.623%, 11/25/35 (a) 1,139 1,104,595 Asset Backed Funding Certificates Series 2005-HE2 Class A2C, 2.693%, 6/25/35 (a) 174 174,019 Asset Backed Securities Corp. Home Equity Line Trust Series 2205-HE4 Class A1, 2.693%, 5/25/35 (a) 56 55,548 Bank of America Credit Card Trust Series 2007-A13 Class A13, 2.734%, 4/15/12 (a) 4,500 4,477,647 Capital One Auto Finance Trust Series 2006-C Class A4, 2.544%, 5/15/13 (a) 700 619,828 Chase Funding Mortgage Loan Asset-Backed Certificates Series 2004-2 Class 2A2, 2.643%, 2/25/34 (a) 503 444,774 Chase Issuance Trust (a): Series 2005-A9 Class A9, 2.534%, 11/15/11 500 496,692 Series 2007-A9 Class A, 2.54%, 6/16/14 2,200 2,126,559 Citifinancial Mortgage Securities, Inc. Series 2003-4 Class AF6, 4.493%, 10/25/33 (a) 639 574,177 Countrywide Asset Backed Certificates Series 2005-11 Class AF4, 5.21%, 9/25/35 (a) 700 618,796 Ford Credit Auto Owner Trust Series 2007-B Class A2B, 2.844%, 4/15/14 (a) 3,400 3,388,518 HSI Asset Securitization Corp. Trust Series 2006-OPT4 Class 2A2, 2.503%, 3/25/36 (a) 835 828,026 MASTR Asset Backed Securities Trust Series 2006-AB1 Class A1, 2.533%, 2/25/36 (a) 158 156,300 MBNA Credit Card Master Note Trust Series 2003-A9 Class A9, 2.644%, 2/15/11 (a) 1,030 1,029,456 Morgan Stanley ABS Capital I (a): Series 2006-HE4 Class A1, 2.433%, 6/25/36 75 75,135 Series 2006-NC3 Class A2B, 2.513%, 3/25/36 (b) 1,604 1,573,694 Series 2006-NC4 Class A2A, 2.423%, 6/25/36 152 149,986 Residential Asset Securities Corp. Series 2005-AHL2 Class A2, 2.653%, 10/25/35 (a) 495 482,477 Securitized Asset Backed Receivables LLC Trust Series 2006-FR2 Class A2, 2.543%, 3/25/36 (a) 1,400 1,345,356 Structured Asset Securities Corp. Series 2005-SC1 Class 1A1, 2.663%, 5/25/31 (a)(b) 634 552,578 - ------------------------------------------------------------------------------- Total Asset-Backed Securities -- 12.1% 25,399,060 =============================================================================== Par Corporate Bonds (000) Value =============================================================================== Beverages -- 0.3% SABMiller Plc, 6.50%, 7/01/16 (b) 600 617,012 =============================================================================== Biotechnology -- 0.3% Amgen, Inc., 0.375%, 2/01/13 (c) 300 258,375 PDL BioPharma, Inc., 2.75%, 8/16/23 (c) 360 340,650 ------------ 599,025 =============================================================================== Capital Markets -- 2.2% The Bear Stearns Cos., Inc. Series B, 4.55%, 6/23/10 100 99,374 Deutsche Bank AG, 4.875%, 5/20/13 700 692,656 The Goldman Sachs Group, Inc., 6.75%, 10/01/37 500 469,146 Lazard Group LLC: 7.125%, 5/15/15 100 93,231 6.85%, 6/15/17 1,000 909,080 Lehman Brothers Holdings, Inc., 6.875%, 5/02/18 1,000 970,466 Morgan Stanley, 4.75%, 4/01/14 300 276,570 UBS AG Series DPNT, 5.875%, 12/20/17 1,000 994,646 ------------ 4,505,169 =============================================================================== Chemicals -- 0.8% Ineos Group Holdings Plc, 8.50%, 2/15/16 (b) 250 194,375 RPM International, Inc.: 6.25%, 12/15/13 50 51,085 6.50%, 2/15/18 1,000 1,004,456 RPM United Kingdom G.P., 6.70%, 11/01/15 200 203,302 Yara International ASA, 5.25%, 12/15/14 (b) 250 245,973 ------------ 1,699,191 =============================================================================== Commercial Banks -- 1.7% BNP Paribas, 7.195% (a)(b)(d) 600 552,231 Compass Bank, 6.40%, 10/01/17 800 770,396 European Investment Bank, 0.75%, 9/21/11 (a) JPY 60,000 569,070 Glitnir Banki hf, 7.451% (a)(b)(d) $ 400 277,427 Kaupthing Bank hf, 7.125%, 5/19/16 (b) 400 308,613 Kreditanstalt fuer Wiederaufbau, 0.706%, 8/08/11 (a) JPY 64,000 607,192 Landsbanki Islands hf, 6.10%, 8/25/11 (b) $ 400 375,908 ------------ 3,460,837 =============================================================================== Commercial Services & Supplies -- 0.1% Aramark Corp., 8.50%, 2/01/15 250 255,937 Waste Management, Inc., 6.50%, 11/15/08 50 50,656 ------------ 306,593 =============================================================================== Construction Materials -- 0.1% Headwaters, Inc., 2.875%, 6/01/16 (c) 300 230,250 =============================================================================== Consumer Finance -- 0.4% American Express Co., 7%, 3/19/18 700 732,808 =============================================================================== See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 25 Schedule of Investments (continued) Franklin Templeton Total Return FDP Fund (Percentages shown are based on Net Assets) Par Corporate Bonds (000) Value =============================================================================== Diversified Financial Services -- 1.2% CIT Group Funding Co. of Canada, 4.65%, 7/01/10 $ 500 $ 435,673 Citigroup, Inc., 8.30%, 12/21/77 (a) 1,000 1,000,256 GMAC LLC: 6.875%, 9/15/11 400 337,236 6.875%, 8/28/12 100 80,549 General Electric Capital Corp.: 5.62%, 10/21/10 (a) 72 71,442 5%, 1/08/16 500 482,338 ------------ 2,407,494 =============================================================================== Diversified Telecommunication Services -- 1.8% AT&T Inc.: 2.888%, 11/14/08 (a) 300 299,894 4.95%, 1/15/13 1,000 996,973 Embarq Corp., 7.082%, 6/01/16 500 486,230 Telecom Italia Capital SA 4.95%, 9/30/14 250 230,184 6.999%, 6/04/18 750 752,297 Verizon New York, Inc. : Series A, 6.875%, 4/01/12 800 840,123 Series B, 7.375%, 4/01/32 100 104,936 ------------ 3,710,637 =============================================================================== Electric Utilities -- 0.5% E. On International Finance B.V., 5.80%, 4/30/18 (b) 1,000 983,917 =============================================================================== Energy Equipment & Services -- 0.3% Weatherford International Ltd., 7%, 3/15/38 600 622,134 =============================================================================== Food & Staples Retailing -- 0.8% CVS/Caremark Corp., 5.75%, 6/01/17 300 296,893 The Kroger Co., 6.15%, 1/15/20 500 504,088 Tesco Plc, 6.15%, 11/15/37 (b) 1,000 948,412 ------------ 1,749,393 =============================================================================== Food Products -- 1.3% Bunge Ltd Finance Corp.: 400 354,228 5.875%, 5/15/13 300 293,728 5.10%, 7/15/15 (b) Cargill, Inc., 6%, 11/27/17 (b) 1,000 996,416 Kellogg Co., 4.25%, 3/06/13 1,000 970,595 ------------ 2,614,967 =============================================================================== Health Care Providers & Services -- 1.1% Coventry Health Care, Inc., 6.30%, 8/15/14 750 719,008 Medco Health Solutions, Inc., 7.125%, 3/15/18 800 827,482 Quest Diagnostics, Inc., 6.95%, 7/01/37 600 592,579 UnitedHealth Group, Inc., 6.50%, 6/15/37 200 182,369 ------------ 2,321,438 =============================================================================== Hotels, Restaurants & Leisure -- 0.2% Harrah's Operating Co., Inc., 6.50%, 6/01/16 100 59,750 MGM Mirage, 6.625%, 7/15/15 250 215,000 Station Casinos, Inc., 6.875%, 3/01/16 250 152,187 ------------ 426,937 =============================================================================== Household Durables -- 0.2% Ford Motor Credit Co. LLC: 7.875%, 6/15/10 200 189,515 9.875%, 8/10/11 450 425,800 ------------ 615,315 =============================================================================== IT Services -- 0.5% Fiserv, Inc., 6.125%, 11/20/12 500 501,668 SunGard Data Systems, Inc.: 9.125%, 8/15/13 100 103,000 10.25%, 8/15/15 200 208,000 Verifone Holdings, Inc., 1.375%, 6/15/12 (b)(c) 385 295,969 ------------ 1,108,637 =============================================================================== Independent Power Producers & Energy Traders -- 0.3% NRG Energy, Inc., 7.25%, 2/01/14 300 294,000 Texas Competitive Electric Holdings Co. LLC, 10.25%, 11/01/15 (b) 300 306,375 ------------ 600,375 =============================================================================== Industrial Conglomerates -- 0.0% Hutchison Whampoa International (03/33) Ltd., 7.45%, 11/24/33 (b) 50 52,064 =============================================================================== Insurance -- 1.7% American International Group, Inc., 8.175%, 5/15/58 (a)(b) 1,100 1,055,252 Genworth Financial, Inc., 6.15%, 11/15/66 (a) 500 404,226 Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b) 700 693,000 MetLife, Inc., 6.40%, 12/15/66 600 527,372 Metropolitan Life Global Funding I, 5.125%, 4/10/13 (b) 900 886,525 ------------ 3,566,375 =============================================================================== Media -- 1.8% British Sky Broadcasting Group Plc, 6.10%, 2/15/18 (b) 1,000 992,897 Charter Communications Holdings I, LLC, 11%, 10/01/15 100 85,000 Charter Communications Holdings II, LLC, 10.25%, 9/15/10 200 199,000 Comcast Corp., 6.30%, 11/15/17 1,000 1,014,372 Dex Media West LLC, 9.875%, 8/15/13 25 24,094 News America, Inc., 7.25%, 5/18/18 400 424,826 R.H. Donnelley Corp. Series A-3, 8.875%, 1/15/16 300 205,500 Viacom, Inc., 6.25%, 4/30/16 350 346,820 6.125%, 10/05/17 500 490,497 ------------ 3,783,006 =============================================================================== Metals & Mining -- 0.1% Novelis, Inc., 7.25%, 2/15/15 125 117,500 =============================================================================== Multi-Utilities -- 0.6% CenterPoint Energy, Inc. 7.25%, 9/01/10 75 77,548 6.50%, 5/01/18 1,050 1,027,694 CenterPoint Energy Resources Corp., 6.125%, 11/01/17 200 195,908 ------------ 1,301,150 =============================================================================== Multiline Retail -- 2.3% Macy's Retail Holdings, Inc., 5.35%, 3/15/12 4,000 3,770,520 Target Corp., 6%, 1/15/18 1,000 1,013,773 ------------ 4,784,293 =============================================================================== See Notes to Financial Statements. 26 FDP SERIES, INC. MAY 31, 2008 Schedule of Investments (continued) Franklin Templeton Total Return FDP Fund (Percentages shown are based on Net Assets) Par Corporate Bonds (000) Value =============================================================================== Oil, Gas & Consumable Fuels -- 2.0% Canadian Natural Resources Ltd., 5.90%, 2/01/18 $ 1,000 $ 999,397 Chesapeake Energy Corp., 6.625%, 1/15/16 350 339,500 Gaz Capital for Gazprom, 6.212%, 11/22/16 (b) 500 485,950 Lukoil International Finance B.V., 6.656%, 6/07/22 (b) 500 461,250 Petroplus Finance Ltd., 6.75%, 5/01/14 (b) 250 229,375 Valero Energy Corp., 6.125%, 6/15/17 800 780,120 Williams Cos., Inc.: 7.625%, 7/15/19 100 107,375 8.75%, 3/15/32 100 116,500 XTO Energy, Inc., 5.90%, 8/01/12 700 714,387 ------------ 4,233,854 =============================================================================== Paper & Forest Products -- 0.0% Weyerhaeuser Co., 7.375%, 3/15/32 100 98,738 =============================================================================== Pharmaceuticals -- 0.6% Abbott Laboratories, 6.15%, 11/30/37 400 398,916 Schering-Plough Corp., 6%, 9/15/17 900 890,647 ------------ 1,289,563 =============================================================================== Real Estate Investment Trusts (REITs) -- 1.9% CapitalSource, Inc., 4%, 7/15/34 (a)(c) 695 627,238 Colonial Realty LP, 5.50%, 10/01/15 500 430,965 ERP Operating LP, 5.75%, 6/15/17 500 472,129 HCP, Inc., 6.70%, 1/30/18 900 826,909 iStar Financial, Inc.: 6%, 12/15/10 50 45,813 8.625%, 6/01/13 1,000 988,750 WEA Finance LLC, 5.70%, 10/01/16 (b) 650 615,026 ------------ 4,006,830 =============================================================================== Semiconductors & Semiconductor Equipment -- 0.4% Intel Corp., 2.95%, 12/15/35 (c) 186 187,860 Microchip Technology, Inc., 2.125%, (b)(c) 500 599,725 ------------ 787,585 =============================================================================== Specialty Retail -- 0.2% Best Buy Co., Inc., 2.25%, 1/15/22 (c) 360 404,550 =============================================================================== Thrifts & Mortgage Finance -- 0.3% Capmark Financial Group, Inc., 6.30%, 5/10/17 300 220,127 Residential Capital LLC, 6.50%, 6/01/12 800 400,000 ------------ 620,127 =============================================================================== Tobacco -- 0.9% Philip Morris International, Inc., 5.65%, 5/16/18 1,500 1,467,615 Reynolds American, Inc., 7.625%, 6/01/16 350 365,452 ------------ 1,833,067 - ------------------------------------------------------------------------------- Total Corporate Bonds -- 26.9% 56,190,831 =============================================================================== Par Foreign Government Obligations (000) Value =============================================================================== Bank Negara Malaysia Monetary Note, 0%, 9/23/08 (e) MYR 1,710 $ 522,061 Brazil Notas do Tesouro Nacional Series F, 10%, 1/01/17 BRL 4,600 2,353,880 Indonesia Treasury Bond: 12.80%, 6/15/21 IDR 4,310,000 460,183 12.90%, 6/15/22 4,900,000 526,276 Series FR31, 11%, 11/15/20 900,000 85,540 Series FR40, 11%, 9/15/25 4,120,000 383,610 Korea Treasury Bond: Series 1209, 5.25%, 9/10/12 KRW 340,000 326,812 Series 1709, 5.50%, 9/10/17 335,000 321,093 Series 2703, 5.25%, 3/10/27 351,000 322,867 Malaysia Government Bond: 4.305%, 2/27/09 1,300 403,431 3.833%, 9/28/11 2,000 620,679 Series 0108, 3.461%, 7/31/13 1,500 458,885 Series 1/89, 7%, 3/15/09 260 82,372 Series 2/03, 4.24%, 2/07/18 3,600 1,126,637 Series 2/88, 6.45%, 7/01/08 1,150 355,751 Norway Government Bond: 5.50%, 5/15/09 NOK 2,100 409,616 6%, 5/16/11 4,900 977,638 Peru Government Bond, 7.84%, 8/12/20 PEN 615 237,094 Poland Government Bond Series 0509, 6%, 5/24/09 PLN 3,600 1,650,227 Republic of Argentina, 3.092%, 8/03/12 $ 225 192,089 Republic of Ghana, 8.50%, 10/04/17 100 104,750 Singapore Government Bond: 4.375%, 1/15/09 SGD 415 311,166 2.375%, 10/01/09 2,200 1,642,686 Sweden Government Bond Series 1043, 5%, 1/28/09 SEK 7,500 1,254,770 Series 1048, 4%, 12/01/09 12,020 1,990,546 - ------------------------------------------------------------------------------- Total Foreign Government Obligations -- 8.2% 17,120,659 =============================================================================== See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 27 Schedule of Investments (continued) Franklin Templeton Total Return FDP Fund (Percentages shown are based on Net Assets) U.S. Government Agency Par Mortgage-Backed Securities (000) Value =============================================================================== Fannie Mae Guaranteed Pass-Through Certificates: 4.829%, 4/01/35 $ 100 $ 101,244 4.929%, 4/01/35 (a) 808 809,576 5.00%, 7/01/35 -6/15/38 (f) 8,657 8,369,054 5.22%, 9/01/34 (a) 825 826,887 5.228%, 5/01/33 (a) 26 26,318 5.50%, 11/01/34 -6/15/38 (f) 12,721 12,650,793 5.961%, 10/01/32 (a) 217 220,183 6.00%, 6/01/21 -6/15/38 (f) 15,229 15,460,965 6.50%, 1/01/36 -6/15/38 (f) 4,795 4,944,421 Freddie Mac Mortgage Participation Certificates: 4.50%, 9/01/20 281 274,018 4.81%, 11/01/27(a) 481 491,082 5.00%, 6/15/38 (f) 11,450 11,059,990 5.408%, 4/01/32 (a) 132 133,044 5.50%, 6/15/23 -11/01/37 (f) 11,252 11,264,062 6.00%, 10/01/21 -6/15/38 (f) 11,427 11,614,656 6.50%, 6/15/38 (f) 6,000 6,193,128 7.135%, 9/01/32 (a) 40 40,621 - ------------------------------------------------------------------------------- Total U.S. Government Agency Mortgage-Backed Securities -- 40.4% 84,480,042 =============================================================================== =============================================================================== U.S. Government Agency Mortgage-Backed Securities -- Collateralized Mortgage Obligations =============================================================================== Fannie Mae Trust Series 2007-1 Class NF, 3.145%, 2/25/37 (a) 1,842 1,812,271 Freddie Mac Multiclass Certificates: Series 2643 Class OG, 5%, 7/15/32 1,000 960,510 Series 2942 Class TF, 2.864%, 3/15/35 (a) 766 753,479 - ------------------------------------------------------------------------------- Total U.S. Government Agency Mortgage-Backed Securities -- Collateralized Mortgage Obligations -- 1.7% 3,526,260 =============================================================================== Non-U.S. Government Agency Par Mortgage-Backed Securities (000) Value =============================================================================== Collateralized Mortgage Obligations -- 0.8% Permanent Financing Plc Series 8 Class 2A, 2.766%, 6/10/14 (a) 1,700 1,699,917 =============================================================================== Commercial Mortgage-Backed Securities -- 11.9% Bear Stearns Commercial Mortgage Securities Series 2005-PW10 Class A4, 5.405%, 12/11/40 (a) 2,000 1,978,032 Citigroup/Deutsche Bank Commercial Mortgage Trust : Series 2005-C1 Class A4, 5.225%, 7/15/44 (a) 2,300 2,261,344 Series 2006-CD3 Class A5, 5.617%, 10/15/48 2,500 2,476,978 Series 2007-CD4 Class B, 5.447%, 12/11/49 (a) 900 675,642 Series 2007-CD4 Class C, 5.476%, 12/11/49 (a) 2,750 2,003,883 GS Mortgage Securities Corp. II: Series 2006-GG6 Class A4, 5.553%, 4/10/38 (a) 2,519 2,498,082 Series 2007-EOP Class A1, 2.814%, 3/06/20 (a) 444 413,210 Greenwich Capital Commercial Funding Corp. (a): Series 2004-GG1 Class A7, 5.317%, 6/10/36 900 898,129 Series 2005-GG5 Class A5, 5.224%, 4/10/37 1,750 1,713,588 Series 2006-GG7 Class A4, 5.914%, 7/10/38 3,800 3,860,832 Series 2007-GG9 Class C, 5.55%, 3/10/39 1,600 1,175,593 LB-UBS Commercial Mortgage Trust: Series 2005-C5 Class A4, 4.954%, 9/15/30 (b) 2,000 1,932,883 Series 2006-C1 Class A4, 5.156%, 2/15/31 2,100 2,033,451 Series 2006-C3 Class A4, 5.661%, 3/15/39 (a) 850 848,089 ------------ 24,769,736 - ------------------------------------------------------------------------------- Total Non-U.S. Government Agency Mortgage-Backed Securities -- 12.7% 26,469,653 =============================================================================== See Notes to Financial Statements. 28 FDP SERIES, INC. MAY 31, 2008 Schedule of Investments (continued) Franklin Templeton Total Return FDP Fund (Percentages shown are based on Net Assets) Par Floating Rate Loan Interests (000) Value =============================================================================== Aerospace & Defense -- 0.0% TransDigm, Inc. Term Loan B, 4.655%, 6/23/13 $ 85 $ 82,167 =============================================================================== Capital Markets -- 0.2% Nuveen Investments, Inc. Term Loan B, 5.393%, 11/13/14 300 280,650 TD Ameritrade Holding Corp. Term Loan B, 3.88%, 12/31/12 85 83,088 ------------ 363,738 =============================================================================== Chemicals -- 0.1% Celanese US Holdings LLC Dollar Term Loan, 4.188%, 4/02/14 100 95,509 Rockwood Specialities Group, Inc. Term Loan E, 7/30/12 85 81,202 ------------ 176,711 =============================================================================== Commercial Services & Supplies -- 0.6% Affinion Group, Inc. Term Loan B, 4.893% -5.178%, 10/17/12 130 124,069 Allied Waste North America, Inc.: Credit Link, 3.883%, 3/28/14 34 32,594 Term Loan B, 3.93% - 4.57%, 3/28/14 56 54,211 Aramark Corp.: Synthetic L C, 3.18%, 1/26/14 18 16,814 Term Loan B, 4.571%, 1/26/14 282 264,661 Nielsen Company Term Loan B, 4.734%, 8/09/13 359 337,539 West Corp. Term Loan B2, 4.756% - 5.295%, 10/24/13 400 369,857 ------------ 1,199,745 =============================================================================== Diversified Consumer Services -- 0.1% Education Management Corp. Term Loan C, 4.50%, 6/01/13 260 238,834 =============================================================================== Electrical Equipment -- 0.0% Enersys Capital, Inc. Term Loan D, 4.349% - 4.534%, 3/17/11 52 51,621 =============================================================================== Health Care Equipment & Supplies -- 0.0% DJO Financing LLC Term Loan B, 5.696%, 5/20/14 90 87,525 =============================================================================== Health Care Providers & Services -- 0.4% Community Health Systems, Inc. Term Loan B, 4.631% - 4.899%, 7/25/14 333 313,998 DaVita, Inc. Term Loan B1, 3.89% - 4.22%, 10/05/12 100 95,662 Fresenius Medical Care AG Term Loan B, 3.954% - 4.091%, 3/31/13 90 87,059 HCA, Inc. Term Loan A-1, 4.196%, 11/16/12 377 352,408 ------------ 849,127 =============================================================================== Hotels, Restaurants & Leisure -- 0.2% Penn National Gaming, Inc. Term Loan B, 4.13% - 4.66%, 10/03/12 85 82,651 VML US Finance LLC (Venetian Macau US): Term Loan B, 4.95%, 5/24/13 158 152,921 Term Loan B2, 4.95%, 5/25/13 46 44,081 Delay Draw Term Loan, 4.95%, 5/25/12 146 140,748 ------------ 420,401 =============================================================================== Household Durables -- 0.1% Jarden Corp. Term Loan: B1, 4.446%, 1/24/12 96 91,411 B2, 4.446%, 1/24/12 29 27,189 ------------ 118,600 =============================================================================== IT Services -- 0.2% First Data Corp. Term Loan B2, 5.349% - 5.446%, 9/24/14 250 231,470 SunGard Data Systems, Inc. New U.S. Term Loan, 4.508%, 2/28/14 190 178,546 ------------ 410,016 =============================================================================== Independent Power Producers & Energy Traders -- 0.2% NRG Energy, Inc.: Line of Credit, 2.446%, 2/01/13 32 30,307 Term Loan B, 4.196%, 2/01/13 65 62,054 Texas Competitive Electric Holdings Co. LLC: B-2, 6.121% - 6.478%, 10/10/14 200 188,205 B-3, 6.234% - 6.478%, 10/10/14 150 140,609 ------------ 421,175 =============================================================================== Machinery -- 0.1% OshKosh Truck Corp. Term Loan B, 4.76%, 12/06/13 100 95,458 RBS-Global, Inc. (Rexnord), Term Loan, 5.099% -5.318%, 7/22/13 110 103,400 ------------ 198,858 =============================================================================== Media -- 0.5% Cablevision Systems Corp. Incremental Term Loan, 4.34%, 3/29/13 175 165,649 DirecTV Holdings LLC Term Loan B, 3.879%, 4/13/13 85 82,450 Regal Cinemas Term Loan, 4.196%, 10/27/13 130 123,085 UPC Financing Partnership Term Loan N, 4.553% 12/31/14 365 342,188 Univision Communications, Inc. Initial Term Loan, 5.149%, 9/29/14 420 353,902 ------------ 1,067,274 =============================================================================== Paper & Forest Products -- 0.1% Georgia-Pacific Corp. Term Loan B, 4.399% - 4.74%, 12/20/12 150 141,451 =============================================================================== Real Estate Management & Development -- 0.1% Capital Automotive REIT Term Loan B, 4.58%, 12/15/10 150 144,804 =============================================================================== Semiconductors & Semiconductor Equipment -- 0.0% Fairchild Semiconductor International, Inc. Initial Term Loan, 4.196%, 6/26/13 100 96,125 - ------------------------------------------------------------------------------- Wireless Telecommunication Services -- 0.2% Alltel Corp. Term Loan B3, 5.248%, 5/18/15 399 370,081 =============================================================================== Total Floating Rate Loan Interests -- 3.1% 6,438,253 =============================================================================== See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 29 Schedule of Investments (continued) Franklin Templeton Total Return FDP Fund (Percentages shown are based on Net Assets) Par U.S. Government Obligations (000) Value =============================================================================== U.S. Treasury Notes: 2.75%, 2/28/13 $ 7,000 $ 6,800,388 4.375%, 2/15/38 2,000 1,895,312 - ------------------------------------------------------------------------------- Total U.S. Government Obligations -- 4.2% 8,695,700 =============================================================================== =============================================================================== Preferred Securities - ------------------------------------------------------------------------------- Capital Trusts =============================================================================== Commercial Banks -- 0.6% Fifth Third Capital Trust IV, 6.50%, 4/15/67 (a) 600 439,144 Wachovia Capital Trust III, 5.80% (a)(d) 750 573,750 Wells Fargo Capital XIII Series GMTN, 7.70% (a)(d) 300 300,689 ------------ 1,313,583 =============================================================================== Diversified Financial Services -- 1.3% Bank of America Corp. Series M, 8.125% (a)(d) 1,000 999,590 JPMorgan Chase & Co., 7.90% (a)(d) 1,200 1,194,684 JPMorgan Chase Capital XXII, 6.45%, 1/15/87 700 599,581 ------------ 2,793,855 - ------------------------------------------------------------------------------- Total Capital Trusts -- 1.9% 4,107,438 =============================================================================== Preferred Stocks Shares =============================================================================== Automobiles -- 0.1% General Motors Corp. Series C, 6.25% 6,500 107,315 =============================================================================== Diversified Financial Services -- 0.1% CIT Group, Inc., 7.75% 10,500 119,175 =============================================================================== Thrifts & Mortgage Finance -- 0.7% Freddie Mac Series Z, 8.375% 55,200 1,385,520 Washington Mutual, Inc. Series R, 7.75% 300 230,100 ------------ 1,615,620 - ------------------------------------------------------------------------------- Total Preferred Stocks -- 0.9% 1,842,110 =============================================================================== Total Preferred Securities -- 2.9% 5,949,548 =============================================================================== Total Long-Term Securities (Cost -- $238,847,542) -- 112.1% 234,270,006 =============================================================================== Par Short-Term Securities (000) Value =============================================================================== Canada -- 0.1% - ------------------------------------------------------------------------------- Time Deposits -- 0.1% Citibank London, 1.85%, 6/02/08 CAD 265 $ 266,791 =============================================================================== Japan -- 0.2% - ------------------------------------------------------------------------------- Time Deposits -- 0.2% Wachovia London, 0.01%, 6/02/08 JPY 42,000 398,407 =============================================================================== Norway -- 0.5% - ------------------------------------------------------------------------------- Time Deposits -- 0.5% Bank of America London, 4.4596%, 6/02/08 NOK 5,471 1,072,071 =============================================================================== New Zealand -- 0.0% - ------------------------------------------------------------------------------- Time Deposits -- 0.0% Brown Brothers Harriman & Co., 6.80%, 6/02/08 NZD 6 4,862 =============================================================================== Sweden -- 0.0% - ------------------------------------------------------------------------------- Time Deposits -- 0.0% Brown Brothers Harriman & Co., 3.20%, 6/02/08 SEK 77 12,776 =============================================================================== United States -- 12.8% - ------------------------------------------------------------------------------- Time Deposits -- 12.8% Citibank London, 1.46%, 6/02/08 $ 26,750 26,750,481 - ------------------------------------------------------------------------------- Total Short-Term Securities Cost ($28,505,388) -- 13.6% 28,505,388 =============================================================================== Total Investments (Cost -- $267,352,930*) -- 125.7% 262,775,394 Liabilities in Excess of Other Assets -- (25.7%) (53,758,854) ------------ Net Assets -- 100.0% $209,016,540 ============ See Notes to Financial Statements. 30 FDP SERIES, INC. MAY 31, 2008 Schedule of Investments (concluded) Franklin Templeton Total Return FDP Fund * The cost and unrealized appreciation (depreciation) of investments as of May 31, 2008, as computed for federal income tax purposes, were as follows: Aggregate cost ......................................... $ 267,456,692 ============= Gross unrealized appreciation .......................... $ 2,206,298 Gross unrealized depreciation .......................... (6,887,596) ------------- Net unrealized depreciation ............................ $ (4,681,298) ============= (a) Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date. (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicative these securities are not considered to be illiquid. (c) Convertible security. (d) Security is perpetual in nature and has no maturity date. (e) Represents a zero-coupon bond. (f) Represents or includes a "to-be-announced" transaction. The Fund has committed to purchasing securities for which all specific information is not available at this time. o For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. These industry classifications are unaudited. o Forward Foreign exchange contracts as of May 31,2008 were as follows: -------------------------------------------------------------------------- Unrealized Currency Currency Settlement Appreciation Purchased Sold Date (Depreciation) -------------------------------------------------------------------------- CHF 1,108,638 $ 1,020,000 11/28/08 $ 44,747 CHF 731,404 KRW 600,000,000 12/18/08 122,852 $ 1,863,938 EUR 1,250,000 2/27/09 (53,883) JPY 194,857,500 EUR 1,250,000 2/27/09 (41,370) JPY 277,294,080 EUR 1,792,000 4/17/09 (65,418) $ 2,777,779 EUR 1,792,000 4/17/09 34,022 JPY 41,391,000 $ 350,000 6/23/08 43,145 JPY 109,104,213 $ 925,000 6/30/08 111,708 JPY 2,224,600 $ 20,000 9/26/08 1,239 JPY 4,430,600 $ 40,000 9/26/08 2,301 JPY 45,240,000 $ 400,000 10/15/08 32,374 JPY 44,615,250 $ 427,546 1/22/09 1,210 JPY 60,726,780 $ 577,168 2/25/09 7,550 PLN 375,000 $ 163,634 2/06/09 5,337 -------------------------------------------------------------------------- Total $ 245,814 ========= o Swaps outstanding as of May 31, 2008 were as follows:
------------------------------------------------------------------------------------- Notional Unrealized Amount Appreciation (000) (Depreciation) ------------------------------------------------------------------------------------- Sold credit default protection on Dow Jones CDX North America Investment Grade Index Series 4 and receive 0.40% Broker, JPMorgan Chase Expires June 2010 $ 1,000 $(10,606) Bought credit default protection on Macy's Retail Holdings, Inc. and pay 2.05% Broker, JPMorgan Chase Expires March 2012 4,000 (12,388) Sold credit default protection on LCDX Index and receive 3.25% Broker, JPMorgan Chase Expires June 2013 3,000 58,065 Sold credit default protection Time Warner Cable, Inc. and receive 1.83% Broker, JPMorgan Chase Expires June 2013 1,500 32,107 Bought credit default protection on Cox Communications, Inc. and pay 0.98% Broker, JPMorgan Chase Expires June 2013 1,500 (15,672) ------------------------------------------------------------------------------------- Total $ 51,506 ========
o Currency Abbreviations: BRL Brazilian Real CAD Canadian Dollar CHF Swiss Franc EUR Euro IDR Indonesian Rupiah JPY Japanese Yen KRW Korean Won MYR Malaysian Ringgit NOK Norwegian Krone NZD New Zealand Dollar PEN Peru Nuevos Soles PLN Polish Zloty SEK Swedish Krona SGD Singapore Dollar See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 31 Statements of Assets and Liabilities
MFS Van Franklin Research Marsico Kampen Templeton International Growth Value Total Return May 31, 2008 FDP Fund FDP Fund FDP Fund FDP Fund =================================================================================================================================== Assets - ----------------------------------------------------------------------------------------------------------------------------------- Investments at value -- unaffiliated 1 ................................... $194,948,925 $164,276,701 $157,225,853 $262,775,394 Investments at value -- affiliated 2 ..................................... -- -- 32,125 -- Foreign currency at value3 ............................................... 596,270 -- -- 835,750 Unrealized appreciation on swaps ......................................... -- -- -- 90,172 Unrealized appreciation on forward foreign currency contracts ............ -- -- -- 406,485 Unrealized appreciation on unfunded loan commitments ..................... -- -- -- 135 Investments sold receivable .............................................. 1,725,956 -- 132,357 2,809,474 Investments sold receivable affiliates ................................... -- -- 403,577 -- Capital shares sold receivable ........................................... 539,117 497,051 520,393 1,145,497 Interest receivable ...................................................... -- 1,019 20 1,691,522 Dividends receivable ..................................................... 1,160,407 125,064 403,933 5,942 Principal paydowns receivable ............................................ -- -- -- 9,465 Swaps receivable ......................................................... -- -- -- 18,878 Prepaid expenses ......................................................... 15,205 14,862 13,632 16,946 ------------------------------------------------------- Total assets ............................................................. 198,985,880 164,914,697 158,731,890 269,805,660 ------------------------------------------------------- =================================================================================================================================== Liabilities - ----------------------------------------------------------------------------------------------------------------------------------- Unrealized depreciation on swaps ......................................... -- -- -- 38,666 Unrealized depreciation on forward foreign exchange contracts ............ -- -- -- 160,671 Swap premiums received ................................................... -- -- -- 85,384 Deferred foreign capital gain tax payable ................................ 20,645 -- -- -- Bank overdraft ........................................................... 143,769 -- -- -- Investments purchased payable ............................................ 1,389,383 719,867 -- 59,031,971 Capital shares redeemed payable .......................................... 560,326 496,163 497,565 662,141 Income dividends payable ................................................. -- -- -- 562,545 Distribution fees payable ................................................ 135,904 112,992 109,699 125,623 Investment advisory fees payable ......................................... 144,530 106,411 90,421 73,439 Other affiliates payable ................................................. 35,195 9,343 28,904 39,093 Officer's and Directors' fees payable .................................... 3,393 3,242 3,374 107 Other liabilities ........................................................ -- -- -- 557 Swaps payable ............................................................ -- -- -- 7,987 Accrued expenses payable ................................................. 131,217 33,738 61,967 936 ------------------------------------------------------- Total liabilities ........................................................ 2,564,362 1,481,756 791,930 60,789,120 ------------------------------------------------------- =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Net assets ............................................................... $196,421,518 $163,432,941 $157,939,960 $209,016,540 ======================================================= =================================================================================================================================== Net Assets Consist of - ----------------------------------------------------------------------------------------------------------------------------------- Institutional Common Stock, $0.10 par value, 100,000,000 shares authorized $ 25,763 $ 25,923 $ 30,382 $ 31,561 Investor A Common Stock, $0.10 par value 100,000,000 shares authorized ... 246,604 234,228 268,474 383,467 Investor B Common Stock, $0.10 par value 100,000,000 shares authorized ... 39,105 36,957 42,058 42,240 Investor C Common Stock, $0.10 par value 100,000,000 shares authorized ... 1,120,612 1,065,665 1,203,630 1,676,479 Paid-in capital in excess of par ......................................... 171,284,427 145,202,128 163,706,427 207,728,132 Undistributed (distribution in excess of) net investment income .......... 964,069 (3,131) 710,271 2,082,904 Accumulated net realized gain (loss) ..................................... (61,634) (10,584,253) 41,768 1,340,499 Net unrealized appreciation/depreciation ................................. 22,802,572 27,455,424 (8,063,050) (4,268,742) ------------------------------------------------------- Net assets ............................................................... $196,421,518 $163,432,941 $157,939,960 $209,016,540 =======================================================
32 FDP SERIES, INC. MAY 31, 2008 Statements of Assets and Liabilities (concluded)
MFS Van Franklin Research Marsico Kampen Templeton International Growth Value Total Return May 31, 2008 FDP Fund FDP Fund FDP Fund FDP Fund ==================================================================================================================================== Net Asset Value - ------------------------------------------------------------------------------------------------------------------------------------ Institutional: Net assets ...................................................... $ 3,570,799 $ 3,184,231 $ 3,130,585 $ 3,091,457 ============================================================ Shares outstanding .............................................. 257,627 259,231 303,816 315,608 ============================================================ Net asset value per share ....................................... $ 13.86 $ 12.28 $ 10.30 $ 9.80 ============================================================ Investor A: Net assets ...................................................... $ 34,072,268 $ 28,583,161 $ 27,615,537 $ 37,565,501 ============================================================ Shares outstanding .............................................. 2,466,039 2,342,280 2,684,735 3,834,674 ============================================================ Net asset value per share ....................................... $ 13.82 $ 12.20 $ 10.29 $ 9.80 ============================================================ Investor B: Net assets ...................................................... $ 5,364,738 $ 4,411,856 $ 4,302,517 $ 4,137,593 ============================================================ Shares outstanding .............................................. 391,047 369,567 420,578 422,402 ============================================================ Net asset value per share ....................................... $ 13.72 $ 11.94 $ 10.23 $ 9.80 ============================================================ Investor C: Net assets ...................................................... $153,413,713 $127,253,693 $122,891,321 $164,221,989 ============================================================ Shares outstanding .............................................. 11,206,121 10,656,650 12,036,300 16,764,785 ============================================================ Net asset value per share ....................................... $ 13.69 $ 11.94 $ 10.21 $ 9.80 ============================================================ 1 Investments at cost -- unaffiliated ........................... $172,114,071 $136,821,277 $165,293,635 $267,352,930 ============================================================ 2 Investments at cost -- affiliated ............................. -- -- $ 27,393 -- ============================================================ 3 Foreign currency at cost ...................................... $ 596,134 -- -- $ 831,746 ============================================================
See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 33 Statements of Operations
MFS Van Franklin Research Marsico Kampen Templeton International Growth Value Total Return Year Ended May 31, 2008 FDP Fund FDP Fund FDP Fund FDP Fund ==================================================================================================================================== Investment Income - ------------------------------------------------------------------------------------------------------------------------------------ Interest 1 .................................................... $ 34,595 $ 394,595 $ 405,466 $ 10,416,597 Dividends 2 ................................................... 5,232,457 1,768,256 3,676,168 68,435 Dividends from affiliates ..................................... -- -- 1,275 -- ---------------------------------------------------------------- Total income .................................................. 5,267,052 2,162,851 4,082,909 10,485,032 ---------------------------------------------------------------- ==================================================================================================================================== Expenses - ------------------------------------------------------------------------------------------------------------------------------------ Investment advisory ........................................... 1,669,175 1,270,651 1,073,145 798,413 Service -- Investor A ......................................... 80,539 69,445 66,723 91,253 Service and distribution -- Investor B ........................ 55,216 46,746 46,387 33,234 Service and distribution -- Investor C ........................ 1,440,438 1,233,868 1,187,239 1,245,701 Custodian ..................................................... 236,457 30,567 37,152 51,267 Transfer agent -- Institutional ............................... 3,823 3,183 3,609 2,757 Transfer agent -- Investor A .................................. 35,622 28,680 30,600 39,861 Transfer agent -- Investor B .................................. 7,853 6,221 6,865 6,158 Transfer agent -- Investor C .................................. 185,626 144,735 156,585 193,461 Accounting services ........................................... 109,135 79,172 86,877 62,098 Professional .................................................. 66,246 48,073 48,858 46,762 Registration .................................................. 55,549 49,868 54,129 56,263 Printing ...................................................... 44,851 39,641 38,427 44,715 Directors ..................................................... 23,556 22,220 21,647 19,656 Miscellaneous ................................................. 29,823 19,910 17,786 45,272 ---------------------------------------------------------------- Total expenses ................................................ 4,043,909 3,092,980 2,876,029 2,736,871 ---------------------------------------------------------------- Net investment income (loss) .................................. 1,223,143 (930,129) 1,206,880 7,748,161 ---------------------------------------------------------------- ==================================================================================================================================== Realized and Unrealized Gain (Loss) - ------------------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) from: Investments ................................................ 3,571,175 3 (9,525,735) 1,803,787 3,187,110 Swaps ...................................................... -- -- -- 138,720 Foreign currency ........................................... (55,440) (3,496) -- 431,781 ---------------------------------------------------------------- 3,515,735 (9,529,231) 1,803,787 3,757,611 ---------------------------------------------------------------- Net change in unrealized appreciation/depreciation on: Investments ................................................ (1,185,867) 4 8,452,014 (27,748,568) (4,476,193) Swaps ...................................................... -- -- -- 46,544 Unfunded corporate loans ................................... -- -- -- 135 Foreign currency ........................................... (6,312) (7) -- 206,673 ---------------------------------------------------------------- (1,192,179) 8,452,007 (27,748,568) (4,222,841) ---------------------------------------------------------------- Total realized and unrealized gain (loss) ..................... 2,323,556 (1,077,224) (25,944,781) (465,230) ---------------------------------------------------------------- Net Increase (Decrease) in Net Assets Resulting from Operations $ 3,546,699 $ (2,007,353) $(24,737,901) $ 7,282,931 ================================================================ 1 Withholding tax on interest .............................. -- -- -- $ 37,157 ================================================================ 2 Foreign withholding tax on dividends ..................... $ 551,876 $ 16,529 $ 24,745 -- ================================================================ 3 Including $200,247 foreign capital gain tax. 4 Including $14,546 deferred foreign capital gain credit.
See Notes to Financial Statements. 34 FDP SERIES, INC. MAY 31, 2008 Statements of Changes in Net Assets MFS Research International FDP Fund
Year Ended May 31, ------------------------------- Net Increase (Decrease) in Net Assets: 2008 2007 =================================================================================================================================== Operations - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income .......................................................................... $ 1,223,143 $ 416,541 Net realized gain .............................................................................. 3,515,735 9,541,352 Net change in unrealized appreciation/depreciation ............................................. (1,192,179) 19,149,058 ------------------------------- Net increase in net assets resulting from operations ........................................... 3,546,699 29,106,951 ------------------------------- =================================================================================================================================== Dividends and Distributions to Shareholders From - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income: Institutional ............................................................................... (16,873) (14,701) Investor A .................................................................................. (138,741) (152,437) Investor B .................................................................................. (6,458) (23,677) Investor C .................................................................................. (236,510) (454,601) Net realized gain: Institutional ............................................................................... (232,910) (54,298) Investor A .................................................................................. (2,254,105) (586,944) Investor B .................................................................................. (373,525) (119,862) Investor C .................................................................................. (9,471,594) (2,141,664) ------------------------------- Decrease in net assets resulting from dividends and distributions to shareholders .............. (12,730,716) (3,548,184) ------------------------------- =================================================================================================================================== Capital Share Transactions - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets derived from capital share transactions ............................. 30,295,381 62,529,570 ------------------------------- =================================================================================================================================== Redemption Fee - ----------------------------------------------------------------------------------------------------------------------------------- Redemption fee ................................................................................. 4,677 4,267 ------------------------------- =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Total increase in net assets ................................................................... 21,116,041 88,092,604 Beginning of year .............................................................................. 175,305,477 87,212,873 ------------------------------- End of year .................................................................................... $ 196,421,518 $ 175,305,477 =============================== End of year undistributed net investment income ................................................ $ 964,069 $ 395,195 ===============================
See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 35 Statements of Changes in Net Assets Marsico Growth FDP Fund
Year Ended May 31, ------------------------------- Net Increase (Decrease) in Net Assets: 2008 2007 =================================================================================================================================== Operations - ----------------------------------------------------------------------------------------------------------------------------------- Net investment loss ............................................................................ $ (930,129) $ (761,811) Net realized loss .............................................................................. (9,529,231) (896,770) Net change in unrealized appreciation/depreciation ............................................. 8,452,007 17,872,998 ------------------------------- Net increase (decrease) in net assets resulting from operations ................................ (2,007,353) 16,214,417 ------------------------------- =================================================================================================================================== Capital Share Transactions - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets derived from capital share transactions ............................. 17,375,418 59,837,834 ------------------------------- =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Total increase in net assets ................................................................... 15,368,065 76,052,251 Beginning of year .............................................................................. 148,064,876 72,012,625 ------------------------------- End of year .................................................................................... $ 163,432,941 $ 148,064,876 =============================== End of year distributions in excess of net investment loss ..................................... $ (3,131) $ (116) ===============================
Van Kampen Value FDP Fund
Year Ended May 31, ------------------------------- Net Increase (Decrease) in Net Assets: 2008 2007 =================================================================================================================================== Operations - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income .......................................................................... $ 1,206,880 $ 883,962 Net realized gain .............................................................................. 1,803,787 2,048,496 Net change in unrealized appreciation/depreciation ............................................. (27,748,568) 18,058,100 ------------------------------- Net increase (decrease) in net assets resulting from operations ................................ (24,737,901) 20,990,558 ------------------------------- =================================================================================================================================== Dividends and Distributions to Shareholders From - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income: Institutional ............................................................................... (43,702) (21,372) Investor A .................................................................................. (329,687) (194,429) Investor B .................................................................................. (19,588) (18,119) Investor C .................................................................................. (610,775) (392,903) Net realized gain: Institutional ............................................................................... (66,631) (11,793) Investor A .................................................................................. (601,518) (127,710) Investor B .................................................................................. (107,313) (30,636) Investor C .................................................................................. (2,687,196) (547,164) ------------------------------- Decrease in net assets resulting from dividends and distributions to shareholders .............. (4,466,410) (1,344,126) ------------------------------- =================================================================================================================================== Capital Share Transactions - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets derived from capital share transactions ............................. 37,497,933 55,889,410 ------------------------------- =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Total increase in net assets ................................................................... 8,293,622 75,535,842 Beginning of year .............................................................................. 149,646,338 74,110,496 ------------------------------- End of year .................................................................................... $ 157,939,960 $ 149,646,338 =============================== End of year undistributed net investment income ................................................ $ 710,271 $ 507,143 ===============================
See Notes to Financial Statements. 36 FDP SERIES, INC. MAY 31, 2008 Statements of Changes in Net Assets Franklin Templeton Total Return FDP Fund
Year Ended May 31, ------------------------------- Net Increase (Decrease) in Net Assets: 2008 2007 =================================================================================================================================== Operations - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income .......................................................................... $ 7,748,161 $ 4,849,579 Net realized gain .............................................................................. 3,757,611 901,262 Net change in unrealized appreciation/depreciation ............................................. (4,222,841) 1,481,250 ------------------------------- Net increase in net assets resulting from operations ........................................... 7,282,931 7,232,091 ------------------------------- =================================================================================================================================== Dividends and Distributions to Shareholders From - ----------------------------------------------------------------------------------------------------------------------------------- Net investment income: Institutional ............................................................................... (134,938) (74,952) Investor A .................................................................................. (1,587,672) (1,018,150) Investor B .................................................................................. (170,180) (147,832) Investor C .................................................................................. (5,895,446) (3,646,092) Net realized gain: Institutional ............................................................................... (11,697) -- Investor A .................................................................................. (145,961) -- Investor B .................................................................................. (17,588) -- Investor C .................................................................................. (624,763) -- ------------------------------- Decrease in net assets resulting from dividends and distributions to shareholders .............. (8,588,245) (4,887,026) ------------------------------- =================================================================================================================================== Capital Share Transactions - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets derived from capital share transactions ............................. 35,137,373 84,282,710 =================================================================================================================================== Net Assets - ----------------------------------------------------------------------------------------------------------------------------------- Total increase in net assets ................................................................... 33,832,059 86,627,775 Beginning of year .............................................................................. 175,184,481 88,556,706 ------------------------------- End of year .................................................................................... $ 209,016,540 $ 175,184,481 =============================== End of year undistributed net investment income ................................................ $ 2,082,904 $ 301,464 ===============================
See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 37 Financial Highlights Institutional
MFS Research Marsico Growth International FDP Fund FDP Fund ------------------------------------------- ------------------------------------------ Year Ended Year Ended May 31, July 27, 2005 1 May 31, July 27, 2005 1 ------------------------ to May 31, ------------------------ to May 31, 2008 2007 2006 2008 2007 2006 ==================================================================================================================================== Per Share Operating Performance - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period .. $ 14.63 $ 12.21 $ 10.00 $ 12.35 $ 10.70 $ 10.00 =========================================== ========================================== Net investment income (loss) 2 ........ 0.21 0.16 0.08 0.03 0.02 (0.04) Net realized and unrealized gain (loss) 0.12 3 2.76 3 2.13 3 (0.10) 1.63 0.74 ------------------------------------------- ------------------------------------------ Total from investment operations ...... 0.33 2.92 2.21 (0.07) 1.65 0.70 ------------------------------------------- ------------------------------------------ Dividends and distributions from: Net investment income .............. (0.08) (0.11) -- -- -- -- Net realized gain .................. (1.02) (0.39) -- -- -- -- ------------------------------------------- ------------------------------------------ Total dividends and distributions ..... (1.10) (0.50) -- -- -- -- ------------------------------------------- ------------------------------------------ Net asset value, end of period ........ $ 13.86 $ 14.63 $ 12.21 $ 12.28 $ 12.35 $ 10.70 =========================================== ========================================== ==================================================================================================================================== Total Investment Return 4 - ------------------------------------------------------------------------------------------------------------------------------------ Based on net asset value .............. 2.66% 24.62% 22.10% 5 (0.57%) 15.42% 7.00% 5 =========================================== ========================================== ==================================================================================================================================== Ratios to Average Net Assets - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses after waiver ........... 1.32% 1.42% 1.89% 6 1.09% 1.17% 1.60% 6 =========================================== ========================================== Total expenses ........................ 1.32% 1.42% 2.58% 6 1.09% 1.17% 1.90% 6 =========================================== ========================================== Net investment income (loss) .......... 1.55% 1.22% 0.79% 6 0.27% 0.17% (0.43%) 6 ==================================================================================================================================== Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000) ....... $ 3,571 $ 2,984 $ 1,995 $ 3,184 $ 2,657 $ 1,174 =========================================== ========================================== Portfolio turnover .................... 69% 70% 67% 67% 44% 31% =========================================== ==========================================
1 Commencement of operations. 2 Based on average shares outstanding. 3 Includes redemption fee, which is less than $0.01 per share. 4 Total investment returns exclude the effects of any sales charges. 5 Aggregate total investment return. 6 Annualized. See Notes to Financial Statements. 38 FDP SERIES, INC. MAY 31, 2008 Financial Highlights (continued) Institutional
Van Kampen Franklin Templeton Value FDP Fund Total Return FDP Fund ------------------------------------------- ------------------------------------------ Year Ended Year Ended May 31, July 27, 2005 1 May 31, July 27, 2005 1 ------------------------ to May 31, ------------------------ to May 31, 2008 2007 2006 2008 2007 2006 ==================================================================================================================================== Per Share Operating Performance - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period .. $ 12.45 $ 10.50 $ 10.00 $ 9.86 $ 9.63 $ 10.00 =========================================== ========================================== Net investment income 2 ............... 0.18 0.19 0.12 0.46 0.43 0.30 Net realized and unrealized gain (loss) (1.90) 1.86 0.43 (0.02) 0.22 (0.36) ------------------------------------------- ------------------------------------------ Total from investment operations ...... (1.72) 2.05 0.55 0.44 0.65 (0.06) ------------------------------------------- ------------------------------------------ Dividends and distributions from: Net investment income .............. (0.17) (0.05) (0.05) (0.46) (0.42) (0.31) Net realized gain .................. (0.26) (0.05) -- 3 (0.04) -- -- 3 ------------------------------------------- ------------------------------------------ Total dividends and distributions ..... (0.43) (0.10) (0.05) (0.50) (0.42) (0.31) ------------------------------------------- ------------------------------------------ Net asset value, end of period ........ $ 10.30 $ 12.45 $ 10.50 $ 9.80 $ 9.86 $ 9.63 =========================================== ========================================== ==================================================================================================================================== Total Investment Return 4 - ------------------------------------------------------------------------------------------------------------------------------------ Based on net asset value .............. (14.15%) 20.95% 5.56% 5 4.45% 6.97% (0.55%) 5 =========================================== ========================================== ==================================================================================================================================== Ratios to Average Net Assets - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses after waiver ........... 1.02% 1.08% 1.58% 6 0.66% 0.79% 1.28% 6 =========================================== ========================================== Total expenses ........................ 1.02% 1.08% 1.81% 6 0.66% 0.79% 1.47% 6 =========================================== ========================================== Net investment income ................. 1.65% 1.67% 1.31% 6 4.58% 4.37% 3.55% 6 ==================================================================================================================================== Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000) ....... $ 3,131 $ 2,739 $ 1,202 $ 3,091 $ 2,597 $ 982 =========================================== ========================================== Portfolio turnover .................... 25% 26% 14% 288% 7 253% 122% =========================================== ==========================================
1 Commencement of operations. 2 Based on average shares outstanding. 3 Amount is less than ($0.01) per share. 4 Total investment returns exclude the effects of any sales charges. 5 Aggregate total investment return. 6 Annualized. 7 Includes TBA transactions, excluding these transactions the portfolio turnover would have been 150%. See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 39 Financial Highlights (continued) Investor A
MFS Research Marsico Growth International FDP Fund FDP Fund ------------------------------------------- ------------------------------------------ Year Ended Year Ended May 31, July 27, 2005 1 May 31, July 27, 2005 1 ------------------------ to May 31, ------------------------ to May 31, 2008 2007 2006 2008 2007 2006 ==================================================================================================================================== Per Share Operating Performance - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period .. $ 14.59 $ 12.19 $ 10.00 $ 12.30 $ 10.69 $ 10.00 =========================================== ========================================== Net investment income (loss) 2 ........ 0.17 0.12 0.13 -- 3 (0.01) (0.04) Net realized and unrealized gain (loss) 0.12 4 2.75 2.06 (0.10) 1.62 0.73 ------------------------------------------- ------------------------------------------ Total from investment operations ...... 0.29 2.87 2.19 (0.10) 1.61 0.69 ------------------------------------------- ------------------------------------------ Less dividends and distributions: Net investment income .............. (0.06) (0.10) -- -- -- -- Net realized gain .................. (1.00) (0.37) -- -- -- -- ------------------------------------------- ------------------------------------------ Total dividends and distributions ..... (1.06) (0.47) -- -- -- -- ------------------------------------------- ------------------------------------------ Net asset value, end of period ........ $ 13.82 $ 14.59 $ 12.19 $ 12.20 $ 12.30 $ 10.69 =========================================== ========================================== ==================================================================================================================================== Total Investment Return 5 - ------------------------------------------------------------------------------------------------------------------------------------ Based on net asset value per share .... 2.42% 24.24% 21.90% 6 (0.81%) 15.06% 6.90% 6 =========================================== ========================================== ==================================================================================================================================== Ratios to Average Net Assets - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses after waiver ........... 1.56% 1.67% 2.15% 7 1.33% 1.42% 1.72% 7 =========================================== ========================================== Total expenses ........................ 1.56% 1.67% 2.65% 7 1.33% 1.42% 1.76% 7 =========================================== ========================================== Net investment income (loss) .......... 1.27% 0.92% 1.36% 7 0.03% (0.08%) (0.48%) 7 ==================================================================================================================================== Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000) ....... $ 34,072 $ 30,747 $ 15,321 $ 28,583 $ 26,181 $ 12,910 =========================================== ========================================== Portfolio turnover .................... 69% 70% 67% 67% 44% 31% =========================================== ==========================================
1 Commencement of operations. 2 Based on average shares outstanding. 3 Amount is less than $0.01 per share. 4 Includes redemption fee, which is less than $0.01 per share. 5 Total investment returns exclude the effects of sales charges. 6 Aggregate total investment return. 7 Annualized. See Notes to Financial Statements. 40 FDP SERIES, INC. MAY 31, 2008 Financial Highlights (continued) Investor A
Van Kampen Franklin Templeton Value FDP Fund Total Return FDP Fund ------------------------------------------- ------------------------------------------ Year Ended Year Ended May 31, July 27, 2005 1 May 31, July 27, 2005 1 ------------------------ to May 31, ------------------------ to May 31, 2008 2007 2006 2008 2007 2006 ==================================================================================================================================== Per Share Operating Performance - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period .. $ 12.43 $ 10.49 $ 10.00 $ 9.86 $ 9.63 $ 10.00 =========================================== ========================================== Net investment income 2 ............... 0.15 0.16 0.11 0.43 0.40 0.29 Net realized and unrealized gain (loss) (1.89) 1.87 0.43 (0.02) 0.23 (0.39) ------------------------------------------- ------------------------------------------ Total from investment operations ...... (1.74) 2.03 0.54 0.41 0.63 (0.10) ------------------------------------------- ------------------------------------------ Less dividends and distributions: Net investment income .............. (0.14) (0.04) (0.05) (0.43) (0.40) (0.27) Net realized gain .................. (0.26) (0.05) -- 3 (0.04) -- -- 3 ------------------------------------------- ------------------------------------------ Total dividends and distributions ..... (0.40) (0.09) (0.05) (0.47) (0.40) (0.27) ------------------------------------------- ------------------------------------------ Net asset value, end of period ........ $ 10.29 $ 12.43 $ 10.49 $ 9.80 $ 9.86 $ 9.63 =========================================== ========================================== ==================================================================================================================================== Total Investment Return 4 - ------------------------------------------------------------------------------------------------------------------------------------ Based on net asset value per share .... (14.29%) 20.65% 5.40% 5 4.20% 6.71% (0.76%) 5 =========================================== ========================================== ==================================================================================================================================== Ratios to Average Net Assets - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses after waiver ........... 1.26% 1.33% 1.69% 6 0.92% 1.04% 1.31% 6 =========================================== ========================================== Total expenses ........................ 1.26% 1.33% 1.71% 6 0.92% 1.04% 1.32% 6 =========================================== ========================================== Net investment income ................. 1.40% 1.42% 1.26% 6 4.32% 4.12% 3.67% 6 =========================================== ========================================== ==================================================================================================================================== Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000) ....... $ 27,616 $ 26,194 $ 13,135 $ 37,566 $ 32,460 $ 16,018 =========================================== ========================================== Portfolio turnover .................... 25% 26% 14% 288% 7 253% 122% =========================================== ==========================================
1 Commencement of operations. 2 Based on average shares outstanding. 3 Less than $(0.01) per share. 4 Total investment returns exclude the effects of sales charges. 5 Aggregate total investment return. 6 Annualized. 7 Includes TBA transactions, excluding these transactions the portfolio turnover would have been 150%. See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 41 Financial Highlights (continued) Investor B
MFS Research Marsico Growth International FDP Fund FDP Fund ------------------------------------------- ------------------------------------------ Year Ended Year Ended May 31, July 27, 2005 1 May 31, July 27, 2005 1 ------------------------ to May 31, ------------------------ to May 31, 2008 2007 2006 2008 2007 2006 ==================================================================================================================================== Per Share Operating Performance - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period .. $ 14.49 $ 12.11 $ 10.00 $ 12.12 $ 10.62 $ 10.00 =========================================== ========================================== Net investment income (loss) 2 ........ 0.05 -- 3 0.04 (0.09) (0.10) (0.12) Net realized and unrealized gain (loss) 0.14 4 2.76 4 2.07 4 (0.09) 1.60 0.74 ------------------------------------------- ------------------------------------------ Total from investment operations ...... 0.19 2.76 2.11 (0.18) 1.50 0.62 ------------------------------------------- ------------------------------------------ Less dividends and distributions: Net investment income .............. (0.02) (0.06) -- -- -- -- Net realized gain .................. (0.94) (0.32) -- -- -- -- ------------------------------------------- ------------------------------------------ Total dividends and distributions ..... (0.96) (0.38) -- -- -- -- ------------------------------------------- ------------------------------------------ Net asset value, end of period ........ $ 13.72 $ 14.49 $ 12.11 $ 11.94 $ 12.12 $ 10.62 =========================================== ========================================== ==================================================================================================================================== Total Investment Return 5 - ------------------------------------------------------------------------------------------------------------------------------------ Based on net asset value per share .... 1.62% 23.34% 21.10% 6 (1.49%) 14.12% 6.20% 6 =========================================== ========================================== ==================================================================================================================================== Ratios to Average Net Assets - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses after waiver ........... 2.35% 2.46% 2.92% 7 2.11% 2.20% 2.52% 7 =========================================== ========================================== Total expenses ........................ 2.35% 2.46% 3.42% 7 2.11% 2.20% 2.57% 7 =========================================== ========================================== Net investment income (loss) .......... 0.40% (0.01%) 0.43% 7 (0.74%) (0.87%) (1.30%) 7 =========================================== ========================================== ==================================================================================================================================== Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000) ....... $ 5,365 $ 5,708 $ 4,169 $ 4,412 $ 4,772 $ 3,362 =========================================== ========================================== Portfolio turnover .................... 69% 70% 67% 67% 44% 31% =========================================== ==========================================
1 Commencement of operations. 2 Based on average shares outstanding. 3 Amount is less than ($0.01) per share. 4 Includes redemption fee, which is less than $0.01 per share. 5 Total investment returns exclude the effects of sales charges. 6 Aggregate total investment return. 7 Annualized. See Notes to Financial Statements. 42 FDP SERIES, INC. MAY 31, 2008 Financial Highlights (continued) Investor B
Van Kampen Franklin Templeton Value FDP Fund Total Return FDP Fund ------------------------------------------- ------------------------------------------ Year Ended Year Ended May 31, July 27, 2005 1 May 31, July 27, 2005 1 ------------------------ to May 31, ------------------------ to May 31, 2008 2007 2006 2008 2007 2006 ==================================================================================================================================== Per Share Operating Performance - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period .. $ 12.36 $ 10.45 $ 10.00 $ 9.86 $ 9.63 $ 10.00 =========================================== ========================================== Net investment income 2 ............... 0.07 0.07 0.04 0.38 0.35 0.25 Net realized and unrealized gain (loss) (1.89) 1.91 0.43 (0.02) 0.22 (0.39) ------------------------------------------- ------------------------------------------ Total from investment operations ...... (1.82) 1.98 0.47 0.36 0.57 (0.14) ------------------------------------------- ------------------------------------------ Less dividends and distributions: Net investment income .............. (0.05) (0.02) (0.02) (0.38) (0.34) (0.23) Net realized gain .................. (0.26) (0.05) -- 3 (0.04) -- -- 3 ------------------------------------------- ------------------------------------------ Total dividends and distributions ..... (0.31) (0.07) (0.02) (0.42) (0.34) (0.23) ------------------------------------------- ------------------------------------------ Net asset value, end of period ........ $ 10.23 $ 12.36 $ 10.45 $ 9.80 $ 9.86 $ 9.63 =========================================== ========================================== ==================================================================================================================================== Total Investment Return 4 - ------------------------------------------------------------------------------------------------------------------------------------ Based on net asset value per share .... (14.99%) 19.67% 4.76% 5 3.66% 6.15% (1.19%) 5 =========================================== ========================================== ==================================================================================================================================== Ratios to Average Net Assets - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses after waiver ........... 2.05% 2.12% 2.49% 6 1.45% 1.57% 1.85% 6 =========================================== ========================================== Total expenses ........................ 2.05% 2.12% 2.52% 6 1.45% 1.57% 1.86% 6 =========================================== ========================================== Net investment income ................. 0.60% 0.63% 0.45% 6 3.80% 3.59% 3.12% 6 =========================================== ========================================== ==================================================================================================================================== Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000) ....... $ 4,303 $ 5,002 $ 3,671 $ 4,138 $ 4,377 $ 3,395 =========================================== ========================================== Portfolio turnover .................... 25% 26% 14% 288% 7 253% 122% =========================================== ==========================================
1 Commencement of operations. 2 Based on average shares outstanding. 3 Amount is less than ($0.01) per share. 4 Total investment returns exclude the effects of sales charges. 5 Aggregate total investment return. 6 Annualized. 7 Includes TBA transactions, excluding these transactions the portfolio turnover rate would have been 150%. See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 43 Financial Highlights (continued) Investor C
MFS Research Marsico Growth International FDP Fund FDP Fund ------------------------------------------- ------------------------------------------ Year Ended Year Ended May 31, July 27, 2005 1 May 31, July 27, 2005 1 ------------------------ to May 31, ------------------------ to May 31, 2008 2007 2006 2008 2007 2006 ==================================================================================================================================== Per Share Operating Performance - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period .. $ 14.48 $ 12.11 $ 10.00 $ 12.13 $ 10.62 $ 10.00 =========================================== ========================================== Net investment income (loss) 2 ........ 0.07 0.02 0.06 (0.09) (0.10) (0.11) Net realized and unrealized gain (loss) 0.10 3 2.74 3 2.05 3 (0.10) 1.61 0.73 ------------------------------------------- ------------------------------------------ Total from investment operations ...... 0.17 2.76 2.11 (0.19) 1.51 0.62 ------------------------------------------- ------------------------------------------ Less dividends and distributions: Net investment income .............. (0.02) (0.07) -- -- -- -- Net realized gain .................. (0.94) (0.32) -- -- -- -- ------------------------------------------- ------------------------------------------ Total dividends and distributions ..... (0.96) (0.39) -- -- -- -- ------------------------------------------- ------------------------------------------ Net asset value, end of period ........ $ 13.69 $ 14.48 $ 12.11 $ 11.94 $ 12.13 $ 10.62 =========================================== ========================================== ==================================================================================================================================== Total Investment Return 4 - ------------------------------------------------------------------------------------------------------------------------------------ Based on net asset value per share .... 1.57% 23.39% 21.10% 5 (1.57%) 14.22% 6.20% 5 =========================================== ========================================== ==================================================================================================================================== Ratios to Average Net Assets - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses after waiver ........... 2.32% 2.44% 2.92% 6 2.09% 2.19% 2.51% 6 =========================================== ========================================== Total expenses ........................ 2.32% 2.44% 3.41% 6 2.09% 2.19% 2.55% 6 =========================================== ========================================== Net investment income (loss) .......... 0.51% 0.18% 0.57% 6 (0.74%) (0.85%) (1.27%) 6 =========================================== ========================================== ==================================================================================================================================== Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000) ....... $ 153,414 $ 135,866 $ 65,729 $ 127,254 $ 114,454 $ 54,566 =========================================== ========================================== Portfolio turnover .................... 69% 70% 67% 67% 44% 31% =========================================== ==========================================
1 Commencement of operations. 2 Based on average shares outstanding. 3 Includes redemption fees, which is less than $0.01 per share. 4 Total investment returns exclude the effects of sales charges. 5 Aggregate total investment return. 6 Annualized. See Notes to Financial Statements. 44 FDP SERIES, INC. MAY 31, 2008 Financial Highlights (concluded) Investor C
Van Kampen Franklin Templeton Value FDP Fund Total Return FDP Fund ------------------------------------------- ------------------------------------------ Year Ended Year Ended May 31, July 27, 2005 1 May 31, July 27, 2005 1 ------------------------ to May 31, ------------------------ to May 31, 2008 2007 2006 2008 2007 2006 ==================================================================================================================================== Per Share Operating Performance - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period .. $ 12.35 $ 10.45 $ 10.00 $ 9.86 $ 9.63 $ 10.00 =========================================== ========================================== Net investment income 2 ............... 0.07 0.07 0.04 0.37 0.35 0.25 Net realized and unrealized gain (loss) (1.89) 1.90 0.44 (0.01) 0.22 (0.40) ------------------------------------------- ------------------------------------------ Total from investment operations ...... (1.82) 1.97 0.48 0.36 0.57 (0.15) ------------------------------------------- ------------------------------------------ Less dividends and distributions: Net investment income .............. (0.06) (0.02) (0.03) (0.38) (0.34) (0.22) Net realized gain .................. (0.26) (0.05) -- 3 (0.04) -- -- 3 ------------------------------------------- ------------------------------------------ Total dividends and distributions ..... (0.32) (0.07) (0.03) (0.42) (0.34) (0.22) ------------------------------------------- ------------------------------------------ Net asset value, end of period ........ $ 10.21 $ 12.35 $ 10.45 $ 9.80 $ 9.86 $ 9.63 =========================================== ========================================== ==================================================================================================================================== Total Investment Return 4 - ------------------------------------------------------------------------------------------------------------------------------------ Based on net asset value per share .... (15.00%) 19.67% 4.78% 5 3.62% 6.10% (1.23%) 5 =========================================== ========================================== ==================================================================================================================================== Ratios to Average Net Assets - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses after waiver ........... 2.02% 2.11% 2.47% 6 1.48% 1.62% 1.90% 6 =========================================== ========================================== Total expenses ........................ 2.02% 2.11% 2.50% 6 1.48% 1.62% 1.91% 6 =========================================== ========================================== Net investment income ................. 0.63% 0.65% 0.48% 6 3.75% 3.54% 3.07% 6 =========================================== ========================================== ==================================================================================================================================== Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000) ....... $ 122,891 $ 115,710 $ 56,102 $ 164,222 $ 135,750 $ 68,162 =========================================== ========================================== Portfolio turnover .................... 25% 26% 14% 288% 7 253% 122% =========================================== ==========================================
1 Commencement of operations. 2 Based on average shares outstanding. 3 Amount is less than ($0.01) per share. 4 Total investment returns exclude the effects of sales charges. 5 Aggregate total investment return. 6 Annualized. 7 Includes TBA transactions, excluding these transactions the portfolio turnover rate would have been 150%. See Notes to Financial Statements. FDP SERIES, INC. MAY 31, 2008 45 Notes to Financial Statements 1. Significant Accounting Policies: MFS Research International FDP Fund, Marsico Growth FDP Fund, Van Kampen Value FDP Fund and Franklin Templeton Total Return FDP Fund (the "Funds" or individually, a "Fund") each is a series of FDP Series, Inc. (the "Corporation"). The Corporation is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The Funds' financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. Each of the Funds offers multiple classes of shares. Institutional Shares are sold only to certain eligible investors. Investor A Shares are generally sold with a front-end sales charge. Shares of Investor B and Investor C may be subject to a contingent deferred sales charge. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Investor A, Investor B and Investor C Shares bear certain expenses related to the shareholder servicing of such shares, and Investor B and Investor C Shares also bear certain expenses related to the distribution of such shares. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor B shareholders may vote on material changes to the Investor A distribution plan). The following is a summary of significant accounting policies followed by the Funds: Valuation of Investments: The Funds value their bond investments on the basis of last available bid price or current market quotations provided by dealers or pricing services selected under the supervision of the Funds' Board of Directors (the "Board"). Swap agreements are valued by quoted fair values received daily by the Funds' pricing service. Short-term securities are valued at amortized cost. Floating rate loan interests are valued at the mean between the last available bid prices from one or more brokers or dealers as obtained from a pricing service. TBA commitments are valued at the current market value of the underlying securities. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures based on valuation technology commonly employed in the market for such investments. Equity investments traded on a recognized securities exchange or on the NASDAQ Global Market System are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. Equity investments traded on a recognized securities exchange for which there were no sales on that day are valued at the last available bid price. Investments in open-end investment companies are valued at net asset value each business day. Short-term securities may be valued at amortized cost. In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by the Board as reflecting fair value ("Fair Value Assets"). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to determine the price that the Fund might reasonably expect to receive from the current sale of that asset in an arm's-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or subadvisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof. Generally, trading in foreign securities is substantially completed each day at various times prior to the close of business on the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net assets of the Fund are determined as of such times. Foreign currency exchange rates will be determined as of the close of business on the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of business on the NYSE that may not be reflected in the computation of the Fund's net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such securities, those securities may be valued at their fair value as determined in good faith by the Board or by the investment advisor using a pricing service and/or procedures approved by the Board. Derivative Financial Instruments: Each Fund may engage in various fund investment strategies to increase the return of the Fund and to hedge, or protect, its exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security, or if the counterparty does not perform under the contract. o Forward foreign currency contracts -- Each Fund may enter into forward foreign currency contracts as a hedge against either specific transactions or fund positions. Forward currency contracts, when used by the Fund, help to manage the overall exposure to the foreign currency backing some of the investments held by the Fund. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. o Credit default swaps -- Each Fund may enter into credit default swaps, which are agreements in which one party pays fixed periodic payments to a counterparty in consideration for a guarantee from the counterparty to make a specific payment should a negative credit event take place. These periodic payments received or made by the Fund are recorded in the accompanying Statement of Operations as realized 46 FDP SERIES, INC. MAY 31, 2008 Notes to Financial Statements (continued) gains or losses, respectively. Gains or losses are realized upon termination of the swap agreements. Swaps are marked-to- market daily and changes in value are recorded as unrealized appreciation (depreciation). Asset-Backed and Mortgage-Backed Securities: Certain Funds may invest in asset-backed securities. Asset-backed securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in an underlying pool of assets, or as debt instruments, which are also known as collateralized obligations, and are generally issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security subject to such a prepayment feature will have the effect of shortening the maturity of the security. If a Fund has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid. Certain Funds may purchase in the secondary market certain mortgage pass-through securities. There are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issued. For example, mortgage-related securities guaranteed by the Government National Mortgage Association ("GNMA") are guaranteed as to the timely payment of principal and interest by GNMA and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by the Federal National Mortgage Association ("FNMA") include FNMA guaranteed Mortgage Pass-Through Certificates which are solely the obligations of the FNMA, are not backed by or entitled to the full faith and credit of the United States and are supported by the right of the issuer to borrow from the Treasury. Certain Funds invest a significant portion of its assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. Please see the Schedule of Investments of the Funds. Changes in economic conditions, including delinquencies and/or defaults or assets underlying these securities, can affect the value, income and/or liquidity of such positions. Capital Trusts: These securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured as either fixed or adjustable coupon securities that can have either a perpetual or stated maturity date. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. Payments on these securities are treated as interest rather than dividends for Federal income tax purposes. These securities can have a rating that is slightly below that of the issuing company's senior debt securities. Foreign Currency Transactions: Foreign currency amounts are translated into United States dollars on the following basis: (i) market value of investment securities, assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the rates of exchange prevailing on the respective dates of such transactions. The Fund reports foreign currency related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes. Floating Rate Loans: Certain Funds may invest in floating rate loans, which are generally non-investment grade, made by banks, other financial institutions and privately and publicly offered corporations. Floating rate loans are senior in the debt structure of a corporation. Floating rate loans generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally (i) the lending rate offered by one or more European banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by one or more U.S. banks or (iii) the certificate of deposit rate. The Funds consider these investments to be investments in debt securities for purposes of its investment policies. The Funds earn and/or pay facility and other fees on floating rate loans. Other fees earned/paid include commitment, amendment, consent, commissions and prepayment penalty fees. Facility, amendment and consent fees are typically amortized as premium and/or accreted as discount over the term of the loan. Commitment, commission and various other fees are recognized on the accrual basis. Prepayment penalty fees are recorded as gains or losses. When a Fund buys a floating rate loan it may receive a facility fee and when it sells a floating rate loan it may pay a facility fee. On an ongoing basis, a Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a floating rate loan. In certain circumstances, a Fund may receive a prepayment penalty fee upon the prepayment of a floating rate loan by a borrower. Other fees received by a Fund may include covenant waiver fees and covenant modification fees. The Funds may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks. FDP SERIES, INC. MAY 31, 2008 47 Notes to Financial Statements (continued) Floating rate loans are usually freely callable at the issuer's option. The Funds may invest in such loans in the form of participations in loans ("Participations") and assignments of all or a portion of loans from third parties. Participations typically will result in the Funds having a contractual relationship only with the lender, not with the borrower. The Funds will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, the Funds generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loans, nor any rights of offset against the borrower, and the Funds may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, the Funds will assume the credit risk of both the borrower and the lender that is selling the Participation. The Funds' investments in loan participation interests involve the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, the Funds may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Mortgage Dollar Rolls: The Funds may sell mortgage-backed securities for delivery in the current month and simultaneously contract to repurchase substantially similar (same type, coupon and maturity) securities on a specific future date at an agreed-upon price. The market value of the securities that the Funds are required to purchase may decline below the agreed upon repurchase price of those securities. Pools of mortgages collateralizing those securities may have different prepayment histories than those sold. During the period between the sale and the repurchase, the Funds will not be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in additional instruments for the Funds, and the income from these investments will generate income for the Funds. If such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of the Funds compared with what the performance would have been without the use of dollar rolls. Preferred Stock: The Funds may invest in preferred stocks. Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well) but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer's board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions. TBA Commitments: Certain Funds may enter into to-be-announced ("TBA") commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to settlement date, which is in addition to the risk of decline in the value of a Fund's other assets. Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Fund has determined the ex-dividend dates. Interest income is recognized on the accrual basis. The Funds amortize all premiums and discounts on debt securities. Dividends and Distributions: For MFS Research International FDP Fund, Marsico Growth FDP Fund and Van Kampen Value FDP Fund, dividends and distributions paid by the Funds are recorded on the ex-dividend dates. For Franklin Templeton Total Return FDP Fund, dividends from net investment income are declared daily and paid monthly and distributions of capital gains are recorded on the ex-dividend dates. Federal Income Taxes: It is each of the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. Under the applicable foreign tax laws, withholding taxes may be imposed on interest, dividends and capital gains at various rates. Effective November 30, 2007, each Fund implemented Financial Accounting Standards Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. The investment advisor has evaluated the application of FIN 48 to the Fund, and has determined that the adoption of FIN 48 does not have a material impact on the Fund's financial statements. The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund's U.S. federal tax returns remains open for the years 48 FDP SERIES, INC. MAY 31, 2008 Notes to Financial Statements (continued) ended May 31, 2005 through May 31, 2007. The statutes of limitations on the Fund's state and local tax returns may remain open for an additional year depending upon the jurisdiction. Recent Accounting Pronouncements: In September 2006, Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The impact on the Funds' financial statement disclosures, if any, is currently being assessed. In addition, in February 2007, Statement of Financial Accounting Standards No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities" ("FAS 159"), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. The impact on the Funds' financial statement disclosures, if any, is currently being assessed. In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities -- an amendment of FASB Statement No. 133" ("FAS 161"), was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position. The investment advisor is currently evaluating the implications of FAS 161 and the impact on the Funds' financial statement disclosures, if any, is currently being assessed. Bank Overdraft: The MFS Research International FDP Fund recorded a bank overdraft, which resulted from management estimates of available cash. Other: Expenses directly related to a Fund or its classes are charged to that Fund or class. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate methods. 2. Investment Advisory Agreement and Other Transactions with Affiliates: Each Fund has entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the "Advisor"), an indirect, wholly owned subsidiary of BlackRock, Inc. to provide investment advisory and administration services. Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC Financial Services Group, Inc. ("PNC"), are principal owners of BlackRock, Inc. The Funds have also entered into a separate Distribution Agreement and Distribution Plan with FAM Distributors, Inc. ("FAMD") and BlackRock Distributors, Inc. ("BDI") and its affiliates. FAMD is a wholly owned subsidiary of Merrill Lynch Group, Inc., and BDI is an affiliate of BlackRock, Inc. The Advisor is responsible for the management of each of the Fund's portfolios and provides the necessary personnel, facilities, equipment and certain other services necessary to the operation of each Fund. For such services each Fund pays the Advisor a monthly fee at the annual rates set forth below, which of the average daily value of each Fund's net assets. - -------------------------------------------------------------------------------- Investment Advisory Fee - -------------------------------------------------------------------------------- MFS Research International FDP Fund ............................... 0.90% Marsico Growth FDP Fund ........................................... 0.80% Van Kampen Value FDP Fund ......................................... 0.70% Franklin Templeton Total Return FDP Fund .......................... 0.40% - -------------------------------------------------------------------------------- The Advisor has also entered into sub-advisory agreements on behalf of each Fund. Pursuant to the sub-advisory agreements, the Advisor will pay each sub-advisor a fee out of the Advisor's investment advisory fee at the following rates, based on each Fund's average daily net assets: - -------------------------------------------------------------------------------- Sub- Advisory Sub-Advisor Fee - -------------------------------------------------------------------------------- MFS Research Massachusetts Financial International FDP Fund Services Company 0.45% - -------------------------------------------------------------------------------- Marsico Growth Marsico Capital FDP Fund Management LLC 0.40% - -------------------------------------------------------------------------------- Van Kampen Value Van Kampen Asset FDP Fund Management 0.35% - -------------------------------------------------------------------------------- Franklin Templeton Total Return FDP Fund Franklin Advisers, Inc. 0.25% - -------------------------------------------------------------------------------- There was no increase in the aggregate fees paid by the Funds for these services. FDP SERIES, INC. MAY 31, 2008 49 Notes to Financial Statements (continued) Pursuant to the Distribution Plans adopted by the Corporation on behalf of the Funds, in accordance with Rule 12b-1 under the 1940 Act, each Fund pays the Distributor ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the shares as follows: - -------------------------------------------------------------------------------- Service Fees - -------------------------------------------------------------------------------- MFS Franklin Research Marsico Van Kampen Templeton International Growth Value Total Return FDP Fund FDP Fund FDP Fund FDP Fund - -------------------------------------------------------------------------------- Investor A ........... 0.25% 0.25% 0.25% 0.25% Investor B ........... 0.25% 0.25% 0.25% 0.25% Investor C ........... 0.25% 0.25% 0.25% 0.25% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Distribution Fees - -------------------------------------------------------------------------------- MFS Franklin Research Marsico Van Kampen Templeton International Growth Value Total Return FDP Fund FDP Fund FDP Fund FDP Fund - -------------------------------------------------------------------------------- Investor B ........... 0.75% 0.75% 0.75% 0.50% Investor C ........... 0.75% 0.75% 0.75% 0.55% - -------------------------------------------------------------------------------- Pursuant to sub-agreements with each Distributor, broker-dealers, including Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned subsidiary of Merrill Lynch, and the Distributor provide shareholder servicing and distribution services to each Fund. The ongoing service and/or distribution fee compensates the Distributor and each broker-dealer for providing shareholder servicing and/or distribution-related services to Investor A, Investor B and Investor C shareholders. For the year ended May 31, 2008, affiliates earned underwriting discounts direct commissions dealer concessions on sales of the Funds' Investor A Shares as follows: - -------------------------------------------------------------------------------- MFS Franklin Research Marsico Van Kampen Templeton International Growth Value Total Return FDP Fund FDP Fund FDP Fund FDP Fund - -------------------------------------------------------------------------------- Investor A Shares 1 .. $179,101 $154,037 $150,979 $259,884 - -------------------------------------------------------------------------------- 1 Include amounts paid to Hilliard Lyons, which was considered an affiliate for a portion of the year. For the year ended May 31, 2008, affiliates received contingent deferred sales charges relating to transactions in Investor B and Investor C Shares as follows: - -------------------------------------------------------------------------------- Investor B Investor C - -------------------------------------------------------------------------------- MFS Research International FDP Fund ............... $ 8,315 $37,485 Marsico Growth FDP Fund ........................... $ 7,776 $35,522 Van Kampen Value FDP Fund ......................... $ 8,105 $34,151 Franklin Templeton Total Return FDP Fund .......... $ 6,817 $44,962 - -------------------------------------------------------------------------------- Furthermore, affiliates received contingent deferred sales charges relating to transactions subject to front-end sales charge waivers as follows: - -------------------------------------------------------------------------------- Investor A 1 - -------------------------------------------------------------------------------- MFS Research International FDP Fund .............................. $423 Marsico Growth FDP Fund .......................................... $441 Van Kampen Value FDP Fund ........................................ $501 Franklin Templeton Total Return FDP Fund ......................... $145 - -------------------------------------------------------------------------------- 1 Include amounts paid to Hilliard Lyons, which was considered an affiliate for a portion of the year. In addition, for the year ended May 31, 2008, MLPF&S received commissions on the execution of portfolio transactions for certain portfolios as follows: - -------------------------------------------------------------------------------- Commissions - -------------------------------------------------------------------------------- Van Kampen Value FDP Fund ........................................ $4,612 - -------------------------------------------------------------------------------- Pursuant to written agreements, certain affiliates provide each Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these affiliates receive an annual fee per shareholder account which will vary depending on share class. For the year ended May 31, 2008 each Fund paid the following in return for these services. - -------------------------------------------------------------------------------- MFS Research International FDP Fund ................................ $205,279 Marsico Growth FDP Fund ............................................ $176,178 Van Kampen Value FDP Fund .......................................... $171,298 Franklin Templeton Total Return FDP Fund ........................... $217,349 - -------------------------------------------------------------------------------- PNC Global Investment Servicing (U.S.) Inc., formerly PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the Advisor, serves as transfer agent and dividend disbursing agent. Each class of the Funds bears the costs of transfer agent fees associated with such respective classes. Transfer agency fees borne by each class of the Fund are comprised of those fees charged for all shareholder communications including shareholder reports, dividend and distribution notices, and proxy materials for shareholders meetings, as well as per account and per transaction fees related to servicing and maintenance of shareholder accounts, including the issuing, redeeming and transferring of shares of each class of the Fund, 12b-1 fee calculation, check writing, anti-money laundering services, and customer identification services. 50 FDP SERIES, INC. MAY 31, 2008 Notes to Financial Statements (continued) For the year ended May 31 2008, each Fund reimbursed the Advisor for certain accounting services as follows: - -------------------------------------------------------------------------------- Accounting Services - -------------------------------------------------------------------------------- MFS Research International FDP Fund ................................ $3,378 Marsico Growth FDP Fund ............................................ $2,940 Van Kampen Value FDP Fund .......................................... $2,746 Franklin Templeton Total Return FDP Fund ........................... $3,590 - -------------------------------------------------------------------------------- Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock, Inc. or its affiliates. 3. Investments: Purchases and sales of investments (including paydowns and TBA transactions, excluding short-term securities) for the year ended May 31, 2008 were as follows: - -------------------------------------------------------------------------------- Purchases Sales - -------------------------------------------------------------------------------- MFS Research International FDP Fund ............ $144,786,039 $125,794,041 Marsico Growth FDP Fund ........................ $118,110,131 $ 99,999,435 Van Kampen Value FDP Fund ...................... $ 72,226,325 $ 36,033,872 Franklin Templeton Total Return FDP Fund ....... $688,477,655 $641,378,786 - -------------------------------------------------------------------------------- 4. Capital Share Transactions: Transactions in capital shares for each class were as follows:
Year Ended Year Ended May 31, 2008 May 31, 2007 --------------------------- --------------------------- MFS Research International FDP Fund Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------------- Institutional - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 96,757 $ 1,332,276 122,482 $ 1,600,578 Shares issued to shareholders in reinvestment of dividends and distributions ........................................... 17,898 239,737 5,162 64,897 --------------------------- --------------------------- Total issued ................................................... 114,655 1,572,013 127,644 1,665,475 Shares redeemed ................................................ (60,930) (835,284) (87,053) (1,068,752) --------------------------- --------------------------- Net increase ................................................... 53,725 $ 736,729 40,591 $ 596,723 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor A - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold and automatic conversion of shares ................. 675,473 $ 9,265,366 1,140,367 $ 14,713,475 Shares issued to shareholders in reinvestment of dividends and distributions ........................................... 170,688 2,278,349 55,717 698,808 --------------------------- --------------------------- Total issued ................................................... 846,161 11,543,715 1,196,084 15,412,283 Shares redeemed ................................................ (487,062) (6,667,957) (346,254) (4,564,089) --------------------------- --------------------------- Net increase ................................................... 359,099 $ 4,875,758 849,830 $ 10,848,194 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor B - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 68,366 $ 938,068 169,762 $ 2,134,267 Shares issued to shareholders in reinvestment of dividends and distributions ........................................... 27,356 361,841 11,148 138,035 --------------------------- --------------------------- Total issued ................................................... 95,722 1,299,909 180,910 2,272,302 Shares redeemed and automatic conversion of shares ............. (98,517) (1,335,266) (131,182) (1,688,071) --------------------------- --------------------------- Net increase (decrease) ........................................ (2,795) $ (35,357) 49,728 $ 584,231 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor C - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 3,387,737 $ 46,144,654 5,034,243 $ 64,701,410 Shares issued to shareholders in reinvestment of dividends and distributions ........................................... 703,237 9,289,815 198,552 2,461,420 --------------------------- --------------------------- Total issued ................................................... 4,090,974 55,434,469 5,232,795 67,162,830 Shares redeemed ................................................ (2,269,948) (30,716,218) (1,274,469) (16,662,408) --------------------------- --------------------------- Net increase ................................................... 1,821,026 $ 24,718,251 3,958,326 $ 50,500,422 =========================== ===========================
FDP SERIES, INC. MAY 31, 2008 51 Notes to Financial Statements (continued) There is a 2% redemption fee on shares redeemed or exchanged that have been held for 30 days or less. The redemption fees are collected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees are recorded as a credit to paid in capital.
Year Ended Year Ended May 31, 2008 May 31, 2007 --------------------------- --------------------------- Marsico Growth FDP Fund Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------------- Institutional - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 102,506 $ 1,262,771 134,685 $ 1,526,340 Shares redeemed ................................................ (58,485) (723,393) (29,175) (330,385) --------------------------- --------------------------- Net increase ................................................... 44,021 $ 539,378 105,510 $ 1,195,955 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor A - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold and automatic conversion of shares ................. 688,665 $ 8,480,857 1,202,119 $ 13,462,095 Shares redeemed ................................................ (475,330) (5,953,651) (281,270) (3,215,476) --------------------------- --------------------------- Net increase ................................................... 213,335 $ 2,527,206 920,849 $ 10,246,619 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor B - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 75,406 $ 916,148 179,947 $ 1,959,762 Shares redeemed and automatic conversion of shares ............. (99,444) (1,207,370) (102,920) (1,143,560) --------------------------- --------------------------- Net increase (decrease) ........................................ (24,038) $ (291,222) 77,027 $ 816,202 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor C - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 3,404,068 $ 41,328,685 5,240,625 $ 58,200,560 Shares redeemed ................................................ (2,186,349) (26,728,629) (270,079) (10,621,502) --------------------------- --------------------------- Net increase ................................................... 1,217,719 $ 14,600,056 4,970,546 $ 47,579,058 =========================== =========================== Year Ended Year Ended May 31, 2008 May 31, 2007 --------------------------- --------------------------- Van Kampen Value FDP Fund Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------------- Institutional - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 134,540 $ 1,502,316 135,823 $ 1,539,887 Shares issued resulting from reinvestment of dividends ......... 9,231 105,087 2,876 31,656 --------------------------- --------------------------- Total issued ................................................... 143,771 1,607,403 138,699 1,571,543 Shares redeemed ................................................ (60,004) (649,486) (33,091) (375,449) --------------------------- --------------------------- Net increase ................................................... 83,767 $ 957,917 105,608 $ 1,196,094 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor A - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold and automatic conversion of shares ................. 917,481 $ 10,146,962 1,140,811 $ 12,785,346 Shares issued resulting from reinvestment of dividends ......... 77,571 882,764 27,678 303,677 --------------------------- --------------------------- Total issued ................................................... 995,052 11,029,726 1,168,489 13,089,023 Shares redeemed ................................................ (417,948) (4,541,412) (312,591) (3,552,028) --------------------------- --------------------------- Net increase ................................................... 577,104 $ 6,488,314 855,898 $ 9,536,995 =========================== ===========================
52 FDP SERIES, INC. MAY 31, 2008 Notes to Financial Statements (continued)
Year Ended Year Ended May 31, 2008 May 31, 2007 --------------------------- --------------------------- Van Kampen Value FDP Fund (concluded) Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------------------------- Investor B - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 109,107 $ 1,210,217 166,483 $ 1,833,829 Shares issued resulting from reinvestment of dividends ......... 10,469 118,796 4,237 46,004 --------------------------- --------------------------- Total issued ................................................... 119,576 1,329,013 170,720 1,879,833 Shares redeemed and automatic conversion of shares ............. (103,771) (1,125,762) (117,293) (1,309,124) --------------------------- --------------------------- Net increase ................................................... 15,805 $ 203,251 53,427 $ 570,709 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor C - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 4,342,590 $ 47,861,001 4,983,356 $ 55,715,772 Shares issued resulting from reinvestment of dividends ......... 278,968 3,159,757 81,798 890,142 --------------------------- --------------------------- Total issued ................................................... 4,621,558 51,020,758 5,065,154 56,605,914 Shares redeemed ................................................ (1,958,259) (21,172,307) (1,062,660) (12,020,302) --------------------------- --------------------------- Net increase ................................................... 2,663,299 $ 29,848,451 4,002,494 $ 44,585,612 =========================== =========================== Franklin Templeton Total Return FDP Fund - ----------------------------------------------------------------------------------------------------------------------------------- Institutional - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 110,399 $ 1,084,614 182,552 $ 1,796,992 Shares issued resulting from reinvestment of dividends and distributions ........................................... 14,056 138,826 7,311 72,138 --------------------------- --------------------------- Total issued ................................................... 124,455 1,223,440 189,863 1,869,130 Shares redeemed ................................................ (72,321) (712,370) (28,367) (278,882) --------------------------- --------------------------- Net increase ................................................... 52,134 $ 511,070 161,496 $ 1,590,248 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor A - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold and automatic conversion of shares ................. 1,204,560 $ 11,859,252 1,914,766 $ 18,831,770 Shares issued resulting from reinvestment of dividends ......... 160,312 1,583,698 93,930 926,302 --------------------------- --------------------------- Total issued ................................................... 1,364,872 13,442,950 2,008,696 19,758,072 Shares redeemed ................................................ (821,910) (8,105,574) (379,755) (3,745,345) --------------------------- --------------------------- Net increase ................................................... 542,962 $ 5,337,376 1,628,941 $ 16,012,727 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor B - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 68,767 $ 676,588 151,003 $ 1,479,622 Shares issued resulting from reinvestment of dividends and distributions ........................................... 16,978 167,697 13,705 135,003 --------------------------- --------------------------- Total issued ................................................... 85,745 844,285 164,708 1,614,625 Shares redeemed and automatic conversion of shares ............. (107,205) (1,058,393) (73,306) (720,700) --------------------------- --------------------------- Net increase (decrease) ........................................ (21,460) $ (214,108) 91,402 $ 893,925 =========================== =========================== - ----------------------------------------------------------------------------------------------------------------------------------- Investor C - ----------------------------------------------------------------------------------------------------------------------------------- Shares sold .................................................... 5,998,304 $ 59,084,830 7,689,235 $ 75,622,749 Shares issued resulting from reinvestment of dividends and distributions ........................................... 602,796 5,955,309 340,367 3,356,217 --------------------------- --------------------------- Total issued ................................................... 6,601,100 65,040,139 8,029,602 78,978,966 Shares redeemed ................................................ (3,602,519) (35,537,104) (1,339,333) (13,193,156) --------------------------- --------------------------- Net increase ................................................... 2,998,581 $ 29,503,035 6,690,269 $ 65,785,810 =========================== ===========================
FDP SERIES, INC. MAY 31, 2008 53 Notes to Financial Statements (continued) 5. Commitments: Unfunded Loans: Franklin Templeton Total Return FDP Fund may invest in floating rate loans. In connection with these investments, the Fund may, with its Advisor, also enter into unfunded corporate loans ("commitments"). Commitments may obligate the Fund to furnish temporary financing to a borrower until permanent financing can be arranged. At May 31, 2008, the Fund had outstanding commitments of approximately $16,000. As of May 31, 2008, the Fund had the following unfunded loan commitments: - -------------------------------------------------------------------------------- Unfunded Value of Commitment Underlying Borrower (000) Loan (000) - -------------------------------------------------------------------------------- Community Health Systems, Inc. .................. 16 $16 - -------------------------------------------------------------------------------- Foreign Exchange Contracts: At May 31, 2008, the MFS Research International FDP Fund had entered into foreign exchange contracts under which it had agreed to purchase and sell various foreign currencies with approximate values of $1,000,000 and $1,621,000, respectively. 6. Short-Term Borrowings: The Corporation, on behalf of the Funds, along with certain other funds managed by the Advisor and its affiliates, is a party to a $500,000,000 credit agreement with a group of lenders. The Corporation may borrow under the credit agreement to fund shareholder redemptions and for other lawful purposes other than for leverage. The Corporation may borrow up to the maximum amount allowable under the Corporation's current Prospectus and Statement of Additional Information, subject to various other legal, regulatory or contractual limits. On November 21, 2007, the credit agreement was renewed for one year under substantially the same terms. The Corporation pays a commitment fee of 0.06% per annum based on the Corporation's pro rata share of the unused portion of the credit agreements, which is included in miscellaneous in the Statement of Operations. Amounts borrowed under the credit agreement bear interest at a rate equal to, at each fund's election, the federal funds rate plus 0.35% or a base rate as defined in the credit agreement. The Corporation did not borrow under the credit agreement during the year ended May 31, 2008. 7. Income Tax Information: Reclassifications: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. Accordingly, the current year's permanent book/tax differences have been reclassified as follows: MFS Research International FDP Fund $255,687 has been reclassified between undistributed net investment income and accumulated net realized gains, as a result of permanent differences attributable to the characterization of expenses and foreign currency transactions. This reclassification has no effect on net assets or net asset values per share. The tax character of distributions paid during the fiscal years ended May 31, 2008 and 2007 was as follows: - -------------------------------------------------------------------------------- 5/31/2008 5/31/2007 - -------------------------------------------------------------------------------- Distributions paid from: Ordinary income ............................... $ 7,249,116 $ 3,373,895 Net long-term capital gains ................... 5,481,600 174,289 -------------------------- Total taxable distributions ...................... $12,730,716 $ 3,548,184 ========================== As of May 31, 2008, the components of accumulated earnings on a tax basis was as follows: - ------------------------------------------------------------------------------- Undistributed ordinary net income .............................. $ 1,761,576 Undistributed long-term net capital gains ...................... 106,765 ----------- Total undistributed net earnings ............................... 1,868,341 Capital loss carryforward ...................................... -- Net unrealized gains ........................................... 21,836,666* ----------- Total accumulated net earnings ................................. $23,705,007 =========== * The difference between book-basis and tax-basis net unrealized gains (losses) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain forward foreign currency contracts and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies. 54 FDP SERIES, INC. MAY 31, 2008 Notes to Financial Statements (continued) Marsico Growth FDP Fund $930,610 has been reclassified between paid-in capital in excess of par and accumulated net investment loss and $3,496 has been reclassified between accumulated net investment loss and accumulated realized capital losses as a result of permanent differences attributable to net operating losses, nondeductible expenses and foreign currency transactions. These reclassifications have no effect on net assets or net asset values per share. As of May 31, 2008, the components of accumulated earnings (losses) on a tax basis were as follows: - ----------------------------------------------------------------------------- Undistributed ordinary net income ........................... $ -- Undistributed long-term net capital gains ................... -- ------------ Total undistributed net earnings ............................ -- Capital loss carryforward ................................... (1,523,186)* Net unrealized gains ........................................ 18,391,226** ------------ Total accumulated net earnings .............................. $ 16,868,040 ============ * On May 31, 2008, the Fund had a capital loss carryforward of $1,523,186 of which $800,231 expires in 2015 and $722,955 expires in 2016. This amount will be available to offset future realized capital gains. ** The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on wash sales and the deferral of post-October currency and capital losses for tax purposes. Franklin Templeton Total Return FDP Fund $1,820,173 has been reclassified between undistributed net realized capital gains and undistributed net investment income and $1,342 has been reclassified between paid-in capital in excess of par and undistributed net investment income as a result of permanent differences attributable to foreign currency transactions, swap agreements, amortization methods on fixed income securities, accounting for paydowns, and non-deductible expenses. These reclassifications have no effect on net assets or net asset values per share. The tax character of distributions paid during the fiscal years ended May 31, 2008 and 2007 was as follows: - -------------------------------------------------------------------------------- 5/31/2008 5/31/2007 - -------------------------------------------------------------------------------- Distributions paid from: Ordinary income ................................. $8,588,245 $4,887,026 ------------------------ Total taxable distributions ........................ $8,588,245 $4,887,026 ======================== As of May 31, 2008, the components of accumulated losses on a tax basis were as follows: - ------------------------------------------------------------------------------ Undistributed ordinary net income ............................. $ 3,636,474 Undistributed long-term net capital gains ..................... 141,061 ----------- Total undistributed net earnings .............................. 3,777,535 Capital loss carryforward ..................................... -- Net unrealized losses ......................................... (4,622,874)* ----------- Total accumulated net losses .................................. $ (845,339) =========== * The difference between book-basis and tax-basis net unrealized gains (losses) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain forward foreign currency contracts, the difference between book and tax amortization methods for premiums and discounts on fixed income securities and the accounting for swaps. FDP SERIES, INC. MAY 31, 2008 55 Notes to Financial Statements (concluded) Van Kampen Value FDP Fund The tax character of distributions paid during the fiscal years ended May 31, 2008 and 2007 was as follows: - -------------------------------------------------------------------------------- 5/31/2008 5/31/2007 - -------------------------------------------------------------------------------- Distributions paid from: Ordinary income .................................. $2,870,514 $ 103,611 Net long-term capital gains ...................... 1,595,896 -- ------------------------ Total taxable distributions ........................ $4,466,410 $ 103,611 ======================== As of May 31, 2008, the components of accumulated losses on a tax basis were as follows: - ------------------------------------------------------------------------------ Undistributed ordinary net income ............................. $ 710,271 Undistributed long-term net capital gains ..................... 146,053 ----------- Total undistributed net earnings .............................. 856,324 Capital loss carryforward ..................................... -- Net unrealized losses ......................................... (8,167,335)* ----------- Total accumulated net losses .................................. $(7,311,011) =========== * The difference between book-basis and tax-basis net unrealized losses is attributable primarily to the tax deferral of losses on wash sales. 56 FDP SERIES, INC. MAY 31, 2008 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors of FDP Series, Inc.: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of FDP Series, Inc. (the "Corporation") comprising MFS Research International FDP Fund, Marsico Growth FDP Fund, Van Kampen Value FDP Fund and Franklin Templeton Total Return FDP Fund, as of May 31, 2008, the related statements of operations for the year then ended and the statements of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Corporation's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Corporation for the period ended May 31, 2006 were audited by other auditors whose report, dated July 19, 2006, expressed an unqualified opinion on those financial highlights. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Corporation is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2008, by correspondence with the custodian and financial intermediaries; where replies were not received from financial intermediaries, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the funds constituting FDP Series, Inc. as of May 31, 2008, the results of their operations for the year then ended, the changes in their net assets, and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Princeton, New Jersey July 28, 2008 FDP SERIES, INC. MAY 31, 2008 57 Important Tax Information MFS Research International FDP Fund The following information is provided with respect to the ordinary income distributions paid by the MFS Research International FDP Fund of FDP Series, Inc. during the fiscal year ended May 31, 2008: ================================================================================ Record Date August 20, 2007 December 5, 2007 Payable Date August 22, 2007 December 7, 2007 ================================================================================ Qualified Dividend Income for Individuals* 43.51%+ 100.00%+ - -------------------------------------------------------------------------------- Foreign Source Income 37.11%+ 45.53%+ - -------------------------------------------------------------------------------- Foreign Taxes Paid Per Share $ 0.022923 $ 0.006843 - -------------------------------------------------------------------------------- Short-Term Capital Gain Dividends for Non-U.S. Residents** 93.52% 100.00% - -------------------------------------------------------------------------------- * The Fund hereby designates the percentage indicated above or the maximum amount allowable by law. ** Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations. + Expressed as a percentage of the cash distribution grossed-up for foreign taxes. The foreign taxes paid represent taxes incurred by the Fund on income received by the Fund from foreign sources. Foreign taxes paid may be included in taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your tax advisor regarding the appropriate treatment of foreign taxes paid. Additionally, the Fund distributed long-term capital gains of $0.242744 and $0.175603 per share to shareholders of record on August 20, 2007 and December 5, 2007, respectively. Van Kampen Value FDP Fund The following information is provided with respect to the ordinary income distributions paid by the Van Kampen Value FDP Fund of FDP Series, Inc. during the fiscal year ended May 31, 2008: ================================================================================ Record Date August 20, 2007 December 5, 2007 Payable Date August 22, 2007 December 7, 2007 ================================================================================ Qualified Dividend Income for Individuals 100% 100.00% - -------------------------------------------------------------------------------- Dividends Qualifying for the Dividends Received Deduction for Corporations 100% 100.00% - -------------------------------------------------------------------------------- Federal Obligation Interest 9.33%* 9.74%* - -------------------------------------------------------------------------------- Short-Term Capital Gain Dividends for Non-U.S. Residents** 67.79% 61.69% - -------------------------------------------------------------------------------- * The law varies in each state as to whether and what percentage of dividend income attributable to federal obligations is exempt from state income tax. We recommend that you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income taxes. ** Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations. Additionally, the Fund distributed long-term capital gains of $0.060360 per share to shareholders of record on August 20, 2007 and $0.058201 per share to shareholders of record on December 5, 2007. Franklin Templeton Total Return FDP Fund The following information is provided with respect to the ordinary income distributions paid by Franklin Templeton Total Return FDP Fund of FDP Series, Inc. for the fiscal year ended May 31, 2008: =============================================================================== Federal Obligation Interest* =============================================================================== Months Paid: June 2007 - May 2008 ................................. 4.03% - ------------------------------------------------------------------------------- =============================================================================== Interest Related Dividends for Non-U.S. Residents** =============================================================================== Months Paid: June 2007 ............................................ 95.80% July 2007 ............................................ 92.09% August 2007 - December 2007 .......................... 85.43% January 2008 - May 2008 .............................. 42.96% - ------------------------------------------------------------------------------- =============================================================================== Short-Term Capital Gain Dividends for Non-U.S. Residents** =============================================================================== Months Paid: August 2007 - December 2007 .......................... 5.55% January 2008 - May 2008 .............................. 17.05% - ------------------------------------------------------------------------------- * The law varies in each state as to whether and what percentage of dividend income attributable to federal obligations is exempt from state income tax. We recommend that you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income taxes. ** Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations. 58 FDP SERIES, INC. MAY 31, 2008 Officers and Directors
Number of Length of BlackRock- Position(s) Time Advised Funds Name, Address Held with Served as a Principal Occupation(s) and Portfolios Public and Year of Birth Fund Director 2 During Past Five Years Overseen Directorships ==================================================================================================================================== Non-Interested Directors 1 - ------------------------------------------------------------------------------------------------------------------------------------ James H. Bodurtha Director Since 2007 Director, The China Business 37 Funds None 40 East 52nd Street Group, Inc. (consulting firm) 104 Portfolios New York, NY 10022 since 1996 and formerly 1944 Executive Vice President thereof from 1996 to 2003; Chairman of the Board, Berkshire Holding Corporation since 1980. - ------------------------------------------------------------------------------------------------------------------------------------ Bruce R. Bond Director Since 2007 Formerly Trustee and Member of 37 Funds None 40 East 52nd Street the Governance Committee, State 104 Portfolios New York, NY 10022 Street Research Mutual Funds 1946 from 1997 to 2005; Formerly Board Member of Governance, Audit and Finance Committee, Avaya Inc. (computer equipment) from 2003 to 2007. - ------------------------------------------------------------------------------------------------------------------------------------ Donald W. Burton Director Since 2007 Managing General Partner, The 37 Funds Knology, Inc. 40 East 52nd Street Burton Partnership, LP (an 104 Portfolios (telecommunications); New York, NY 10022 investment partnership) since Capital Southwest 1944 1979; Managing General Partner, (financial) The South Atlantic Venture Funds since 1983; Member of the Investment Advisory Council of the Florida State Board of Administration from 2001 to 2007. - ------------------------------------------------------------------------------------------------------------------------------------ Honorable Director Since 2007 Partner and Head of 37 Funds UPS Corporation Stuart E. Eizenstat International Practice, 104 Portfolios (delivery service) 40 East 52nd Street Covington and Burling (law firm) New York, NY 10022 since 2001; International 1943 Advisory Board Member, The Coca Cola Company since 2002; Advisory Board Member BT Americas (telecommunications) since 2004; Member of the Board of Directors, Chicago Climate Exchange (environmental) since 2006; Member of the International Advisory Board GML (energy) since 2003. - ------------------------------------------------------------------------------------------------------------------------------------ Kenneth A. Froot Director Since 2007 Professor, Harvard University 37 Funds None 40 East 52nd Street since 1992. 104 Portfolios New York, NY 10022 1957 - ------------------------------------------------------------------------------------------------------------------------------------ Robert M. Hernandez Chairman of Since 2007 Formerly Director, Vice Chairman 37 Funds ACE Limited 40 East 52nd Street the Board, and Chief Financial Officer of 104 Portfolios (insurance company); New York, NY 10022 Director and USX Corporation (energy and Eastman Chemical 1944 Member of steel business) from 1991 to Company (chemical); the Audit 2001. RTI International Committee Metals, Inc. (metals); TYCO Electronics (electronics) - ------------------------------------------------------------------------------------------------------------------------------------ John F. O'Brien Director Since 2007 Trustee, Woods Hole 37 Funds Cabot Corporation 40 East 52nd Street Oceanographic Institute since 104 Portfolios (chemicals); LKQ New York, NY 10022 2003; Formerly Director, Corporation (auto 1943 Allmerica Financial Corporation parts manufacturing); from 1995 to 2003; Formerly TJX Companies, Inc. Director, ABIOMED from 1989 to (retailer) 2006; Formerly Director, Ameresco, Inc. (energy solutions company) from 2006 to 2007. - ------------------------------------------------------------------------------------------------------------------------------------
FDP SERIES, INC. MAY 31, 2008 59 Officers and Directors (continued)
Number of Length of BlackRock- Position(s) Time Advised Funds Name, Address Held with Served as a Principal Occupation(s) and Portfolios Public and Year of Birth Fund Director 2 During Past Five Years Overseen Directorships ==================================================================================================================================== Non-Interested Directors 1 (concluded) - ------------------------------------------------------------------------------------------------------------------------------------ Roberta Cooper Ramo Director Since 2007 Shareholder, Modrall, Sperling, 37 Funds None 40 East 52nd Street Roehl, Harris & Sisk, P.A. (law 104 Portfolios New York, NY 10022 firm) since 1993; Chairman of 1942 the Board, Cooper's Inc., (retail) since 2000; Director of ECMC Group (service provider to students, schools and lenders) since 2001; President Elect, The American Law Institute, (non-profit), 2007; Formerly President, American Bar Association from 1995 to 1996. - ------------------------------------------------------------------------------------------------------------------------------------ Jean Margo Reid Director Since 2007 Self-employed consultant since 37 Funds None 40 East 52nd Street 2001; Director and Secretary, 104 Portfolios New York, NY 10022 SCB, Inc. (holding company) 1945 since 1998; Director and Secretary, SCB Partners, Inc. (holding company) since 2000; Formerly Director, Covenant House (non-profit) from 2001 to 2004. - ------------------------------------------------------------------------------------------------------------------------------------ David H. Walsh Director Since 2007 Director, National Museum of 37 Funds None 40 East 52nd Street Wildlife Art since 2007; 104 Portfolios New York, NY 10022 Director, Ruckleshaus Institute 1941 and Haub School of Natural Resources at the University of Wyoming since 2006; Director, The American Museum of Fly Fishing since 1997; Formerly Consultant with Putnam Investments from 1993 to 2003; Formerly Director, The National Audubon Society from 1998 to 2005. - ------------------------------------------------------------------------------------------------------------------------------------ Fred G. Weiss Chairman of Since 2007 Managing Director, FGW 37 Funds Watson Pharmaceutical 40 East 52nd Street the Audit Associates (consulting and 104 Portfolios Inc. New York, NY 10022 Committee investment company) since 1997; 1941 and Director Director, Michael J. Fox Foundation for Parkinson's Research since 2000; Formerly Director of BTG International Plc (a global technology commercialization company) from 2001 to 2007. - ------------------------------------------------------------------------------------------------------------------------------------ Richard R. West Director and Since 2007 Dean Emeritus, New York 37 Funds Bowne & Co., Inc. 40 East 52nd Street Member of University's Leonard N. Stern 104 Portfolios (financial printers); New York, NY 10022 the Audit School of Business Vornado Realty Trust 1938 Committee Administration since 1995. (real estate company); Alexander's Inc. (real estate company) --------------------------------------------------------------------------------------------------------- 1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. 2 Following the combination of Merrill Lynch Investment Managers, L.P. ("MLIM") and BlackRock, Inc. ("BlackRock") in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain directors as joining the Funds' board in 2007, each director first became a member of the board of directors of other legacy MLIM or legacy BlackRock Funds as follows: James H. Bodurtha since 1995; Bruce R. Bond since 2005; Donald W. Burton since 2002; Stuart E. Eizenstat since 2001; Kenneth A. Froot since 2005; Robert M. Hernandez since 1996; John F. O'Brien since 2004; Roberta Cooper Ramo since 2000; Jean Margo Reid since 2004; David H. Walsh since 2003; Fred G. Weiss since 1998; and Richard R. West since 1978.
60 FDP SERIES, INC. MAY 31, 2008 Officers and Directors (continued)
Number of Length of BlackRock- Position(s) Time Advised Funds Name, Address Held with Served as a Principal Occupation(s) and Portfolios Public and Year of Birth Fund Director 2 During Past Five Years Overseen Directorships ==================================================================================================================================== Interested Directors 1 - ------------------------------------------------------------------------------------------------------------------------------------ Richard S. Davis Director Since 2007 Managing Director, BlackRock, 185 Funds None 40 East 52nd Street Inc. since 2005; Formerly Chief 295 Portfolios New York, NY 10022 Executive Officer, State Street 1945 Research & Management Company from 2000 to 2005; Formerly Chairman of the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005; Formerly Chairman, SSR Realty from 2000 to 2004. - ------------------------------------------------------------------------------------------------------------------------------------ Laurence D. Fink Director Since 2007 Chairman and Chief Executive 37 Funds None 40 East 52nd Street Officer of BlackRock, Inc. since 104 Portfolios New York, NY 10022 its formation in 1998 and of 1952 BlackRock, Inc.'s predecessor entities since 1988 and Chairman of the Executive and Management Committees; Formerly Managing Director, The First Boston Corporation, Member of its Management Committee, Co-head of its Taxable Fixed Income Division and Head of its Mortgage and Real Estate Products Group; Chairman of the Board of several of BlackRock's alternative investment vehicles; Director of several of BlackRock's offshore funds; Member of the Board of Trustees of New York University, Chair of the Financial Affairs Committee and a member of the Executive Committee, the Ad Hoc Committee on Board Governance, and the Committee on Trustees; Co-Chairman of the NYU Hospitals Center Board of Trustees, Chairman of the Development/Trustee Stewardship Committee and Chairman of the Finance Committee; Trustee, The Boys' Club of New York. - ------------------------------------------------------------------------------------------------------------------------------------ Henry Gabbay Director Since 2007 Consultant, BlackRock, Inc. 184 Funds None 40 East 52nd Street since 2007; Formerly Managing 294 Portfolios New York, NY 10022 Director, BlackRock, Inc. from 1947 1989 to 2007; Formerly Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; Formerly President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Formerly Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006. --------------------------------------------------------------------------------------------------------- 1 Messrs. Davis, Fink and Gabbay are all "interested persons," as defined in the Investment Company Act of 1940, of the Funds based on their positions with BlackRock, Inc. and its affiliates. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.
FDP SERIES, INC. MAY 31, 2008 61 Officers and Directors (concluded)
Position(s) Length of Name, Address Held with Time and Year of Birth Fund Served Principal Occupation(s) During Past Five Years ==================================================================================================================================== Fund Officers 1 - ------------------------------------------------------------------------------------------------------------------------------------ Donald C. Burke Fund Since 2007 Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of 40 East 52nd Street President Merrill Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, New York, NY 10022 and L.P. ("FAM") in 2006; First Vice President thereof from 1997 to 2005; 1960 Chief Treasurer thereof from 1999 to 2006 and Vice President thereof from 1990 to Executive 1997. Officer - ------------------------------------------------------------------------------------------------------------------------------------ Anne F. Ackerley Vice Since 2007 Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer of 40 East 52nd Street President BlackRock's U.S. Retail Group since 2006; Head of BlackRock's Mutual Fund New York, NY 10022 Group from 2000 to 2006; Merrill Lynch & Co., Inc. from 1984 to 1986 and from 1962 1988 to 2000, most recently as First Vice President and Operating Officer of the Mergers and Acquisitions Group. - ------------------------------------------------------------------------------------------------------------------------------------ Neal J. Andrews Chief Since 2007 Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice 40 East 52nd Street Financial President and Line of Business Head of Fund Accounting and Administration at New York, NY 10022 Officer PFPC Inc. from 1992 to 2006. 1966 - ------------------------------------------------------------------------------------------------------------------------------------ Jay M. Fife Treasurer Since 2007 Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly 40 East 52nd Street Assistant Treasurer of the MLIM/FAM advised funds from 2005 to 2006; Director New York, NY 10022 of MLIM Fund Services Group from 2001 to 2006. 1970 - ------------------------------------------------------------------------------------------------------------------------------------ Brian P. Kindelan Chief Since 2007 Chief Compliance Officer of the BlackRock-advised Funds since 2007; 40 East 52nd Street Compliance Anti-Money Laundering Officer of the Funds since 2007; Managing Director and New York, NY 10022 Officer of Senior Counsel of BlackRock, Inc. since 2005; Director and Senior Counsel of 1959 the Fund BlackRock Advisors, Inc. from 2001 to 2004 and Vice President and Senior Counsel thereof from 1998 to 2000; Senior Counsel of The PNC Bank Corp. from 1995 to 1998. - ------------------------------------------------------------------------------------------------------------------------------------ Howard Surloff Secretary Since 2007 Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at 40 East 52nd Street BlackRock, Inc. since 2006; Formerly General Counsel (U.S.) of Goldman Sachs New York, NY 10022 Asset Management, L.P. from 1993 to 2006. 1965 --------------------------------------------------------------------------------------------------------- 1 Officers of the Fund serve at the pleasure of the Board of Directors. --------------------------------------------------------------------------------------------------------- Further information about the Funds' Officers and Directors is available in the Funds' Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762. - ------------------------------------------------------------------------------------------------------------------------------------
Custodian Brown Brothers Harriman & Co. 40 Water Street Boston, MA 02109-3661 Transfer Agent PNC Global Investment Servicing (U.S.) Inc. Wilmington, DE 19809 Accounting Agent State Street Bank and Trust Company Princeton, NJ 08540 Independent Registered Public Accounting Firm Deloitte & Touche LLP Princeton, NJ 08540 Legal Counsel Willkie Farr & Gallagher LLP New York, NY 10019 Address of the Funds 100 Bellevue Parkway Wilmington, DE 19809 62 FDP SERIES, INC. MAY 31, 2008 Additional Information BlackRock Privacy Principles BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, "Clients") and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties. If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations. BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites. BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose. We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information. FDP SERIES, INC. MAY 31, 2008 63 Additional Information (continued) Availability of Additional Information Electronic copies of most financial reports and prospectuses are available on the Funds' website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Funds' electronic delivery program. To enroll: Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages: Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service. Shareholders Who Hold Accounts Directly with BlackRock: 1) Access the BlackRock website at http://www.blackrock.com/edelivery 2) Click on the applicable link and follow the steps to sign up 3) Log into your account Householding The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called "householding" and it is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Fund at (800) 441-7762. Availability of Proxy Voting Policies and Procedures A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission's (the "SEC") website at http://www.sec.gov. Availability of Proxy Voting Record Information about how the Funds vote proxies relating to securities held in the Funds' portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC's website at http://www.sec.gov. Availability of Quarterly Portfolio Schedule The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the SEC's website at http://www.sec.gov and may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Funds' Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762. 64 FDP SERIES, INC. MAY 31, 2008 Additional Information (concluded) Shareholder Privileges Account Information Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at www.blackrock.com/funds. Automatic Investment Plans Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds. Systematic Withdrawal Plans Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account is at least $10,000. Retirement Plans Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans. FDP SERIES, INC. MAY 31, 2008 65 A World-Class Mutual Fund Family BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing. Equity Funds BlackRock All-Cap Global Resources Portfolio BlackRock Asset Allocation Portfolio+ BlackRock Aurora Portfolio BlackRock Balanced Capital Fund+ BlackRock Basic Value Fund BlackRock Capital Appreciation Portfolio BlackRock Equity Dividend Fund BlackRock EuroFund BlackRock Focus Growth Fund BlackRock Focus Value Fund BlackRock Fundamental Growth Fund BlackRock Global Allocation Fund+ BlackRock Global Dynamic Equity Fund BlackRock Global Emerging Markets Fund BlackRock Global Financial Services Fund BlackRock Global Growth Fund BlackRock Global Opportunities Portfolio BlackRock Global Resources Portfolio BlackRock Global Science & Technology Opportunities Portfolio BlackRock Global SmallCap Fund BlackRock Health Sciences Opportunities Portfolio* BlackRock Healthcare Fund BlackRock Index Equity Portfolio* BlackRock International Fund BlackRock International Index Fund BlackRock International Opportunities Portfolio BlackRock International Value Fund BlackRock Large Cap Core Fund BlackRock Large Cap Growth Fund BlackRock Large Cap Value Fund BlackRock Latin America Fund BlackRock Mid-Cap Growth Equity Portfolio BlackRock Mid-Cap Value Equity Portfolio BlackRock Mid Cap Value Opportunities Fund BlackRock Natural Resources Trust BlackRock Pacific Fund BlackRock Small Cap Core Equity Portfolio BlackRock Small Cap Growth Equity Portfolio BlackRock Small Cap Growth Fund II BlackRock Small Cap Index Fund BlackRock Small Cap Value Equity Portfolio* BlackRock Small/Mid-Cap Growth Portfolio BlackRock S&P 500 Index Fund BlackRock Technology Fund BlackRock U.S. Opportunities Portfolio BlackRock Utilities and Telecommunications Fund BlackRock Value Opportunities Fund Fixed Income Funds BlackRock Commodity Strategies Fund BlackRock Emerging Market Debt Portfolio BlackRock Enhanced Income Portfolio BlackRock GNMA Portfolio BlackRock Government Income Portfolio BlackRock High Income Fund BlackRock High Yield Bond Portfolio BlackRock Income Portfolio BlackRock Income Builder Portfolio BlackRock Inflation Protected Bond Portfolio BlackRock Intermediate Bond Portfolio II BlackRock Intermediate Government Bond Portfolio BlackRock International Bond Portfolio BlackRock Long Duration Bond Portfolio BlackRock Low Duration Bond Portfolio BlackRock Managed Income Portfolio BlackRock Short-Term Bond Fund BlackRock Strategic Income Portfolio BlackRock Total Return Fund BlackRock Total Return Portfolio II BlackRock World Income Fund Municipal Bond Funds BlackRock AMT-Free Municipal Bond Portfolio BlackRock California Insured Municipal Bond Fund BlackRock Delaware Municipal Bond Portfolio BlackRock Florida Municipal Bond Fund BlackRock High Yield Municipal Fund BlackRock Intermediate Municipal Fund BlackRock Kentucky Municipal Bond Portfolio BlackRock Municipal Insured Fund BlackRock National Municipal Fund BlackRock New Jersey Municipal Bond Fund BlackRock New York Municipal Bond Fund BlackRock Ohio Municipal Bond Portfolio BlackRock Pennsylvania Municipal Bond Fund BlackRock Short-Term Municipal Fund Target Risk & Target Date Funds BlackRock Prepared Portfolios Conservative Prepared Portfolio Moderate Prepared Portfolio Growth Prepared Portfolio Aggressive Growth Prepared Portfolio BlackRock Lifecycle Prepared Portfolios Prepared Portfolio 2010 Prepared Portfolio 2015 Prepared Portfolio 2020 Prepared Portfolio 2025 Prepared Portfolio 2030 Prepared Portfolio 2035 Prepared Portfolio 2040 Prepared Portfolio 2045 Prepared Portfolio 2050 * See the prospectus for information on specific limitations on investments in the fund. + Mixed asset fund. BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and certain funds are also distributed by FAM Distributors, Inc. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund's prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 882-0052 or from your financial advisor. The prospectus should be read carefully before investing. 66 FDP SERIES, INC. MAY 31, 2008 This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless accompanied or preceded by the Funds' current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change. BLACKROCK #FDPS-5/08 Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant's principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com. Item 3 - Audit Committee Financial Expert - The registrant's board of directors or trustees, as applicable (the "board of directors") has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: David O. Beim (term ended, effective November 1, 2007) James T. Flynn (term ended, effective November 1, 2007) Robert M. Hernandez (term began, effective November 1, 2007) W. Carl Kester (term ended, effective November 1, 2007) Karen P. Robards (term ended, effective November 1, 2007) Fred G. Weiss (term began, effective November 1, 2007) Richard R. West (term began, effective November 1, 2007) The registrant's board of directors has determined that David O. Beim, W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR. Mr. Beim has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. For 25 years, Mr. Beim was an investment banker actively engaged in financial analysis for securities transactions and mergers. These transactions presented a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant's financial statements. Mr. Beim has also been a professor of finance and economics at the Columbia University Graduate School of Business since 1991. Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester's financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant's financial statements. Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization. Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. Item 4 - Principal Accountant Fees and Services
- ----------------------------------------------------------------------------------------------------------------------------------- (a) Audit Fees (b) Audit-Related Fees(1) (c) Tax Fees(2) (d) All Other Fees(3) - ----------------------------------------------------------------------------------------------------------------------------------- Current Previous Current Previous Current Previous Current Previous Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal Entity Name End Year End End Year End End Year End End Year End - ----------------------------------------------------------------------------------------------------------------------------------- Franklin Templeton $35,300 $32,000 $0 $0 $6,100 $6,100 $1,049 $1,042 Total Return FDP Fund - ----------------------------------------------------------------------------------------------------------------------------------- Marsico Growth FDP Fund $29,300 $32,000 $0 $0 $6,100 $6,100 $1,049 $1,042 - ----------------------------------------------------------------------------------------------------------------------------------- MFS Research $31,300 $32,000 $0 $0 $6,100 $6,100 $1,049 $1,042 International FDP Fund - ----------------------------------------------------------------------------------------------------------------------------------- Van Kampen Value FDP $29,300 $32,000 $0 $0 $6,100 $6,100 $1,049 $1,042 Fund - -----------------------------------------------------------------------------------------------------------------------------------
1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. 2 The nature of the services include tax compliance, tax advice and tax planning. 3 The nature of the services include a review of compliance procedures and attestation thereto. (e)(1) Audit Committee Pre-Approval Policies and Procedures: The registrant's audit committee (the "Committee") has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrant's affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC's auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis ("general pre-approval"). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operation or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the Committee oversees. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels. Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to one or more of its members the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels. (e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not Applicable (g) Affiliates' Aggregate Non-Audit Fees: -------------------------------------------------------------------- Current Fiscal Previous Fiscal Entity Name Year End Year End -------------------------------------------------------------------- Franklin Templeton Total Return $294,649 $2,986,459 FDP Fund -------------------------------------------------------------------- Marsico Growth FDP Fund $294,649 $2,986,459 -------------------------------------------------------------------- MFS Research International FDP $294,649 $2,986,459 Fund -------------------------------------------------------------------- Van Kampen Value FDP Fund $294,649 $2,986,459 -------------------------------------------------------------------- (h) The registrant's audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant's investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant's investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. Regulation S-X Rule 2-01(c)(7)(ii) - $287,500, 0% Item 5 - Audit Committee of Listed Registrants - Not Applicable Item 6 - Investments (a) The registrant's Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form. (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing. Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies - Not Applicable Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not Applicable Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers - Not Applicable Item 10 - Submission of Matters to a Vote of Security Holders - The registrant's Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and set forth the qualifications of the proposed nominee to the registrant's Secretary. There have been no material changes to these procedures. Item 11 - Controls and Procedures 11(a) - The registrant's principal executive and principal financial officers or persons performing similar functions have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended. 11(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12 - Exhibits attached hereto 12(a)(1) - Code of Ethics - See Item 2 12(a)(2) - Certifications - Attached hereto 12(a)(3) - Not Applicable 12(b) - Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FDP Series, Inc. By: /s/ Donald C. Burke ----------------------------------- Donald C. Burke Chief Executive Officer of FDP Series, Inc. Date: July 18, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Donald C. Burke ----------------------------------- Donald C. Burke Chief Executive Officer (principal executive officer) of FDP Series, Inc. Date: July 18, 2008 By: /s/ Neal J. Andrews ----------------------------------- Neal J. Andrews Chief Financial Officer (principal financial officer) of FDP Series, Inc. Date: July 18, 2008 EX-99.CERT 2 e604071_ex99-cert.txt EX-99. CERT CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - -------------------------------------------------------------------------------- I, Donald C. Burke, Chief Executive Officer (principal executive officer) of FDP Series, Inc., certify that: 1. I have reviewed this report on Form N-CSR of FDP Series, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committees of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 18, 2008 /s/ Donald C. Burke - ---------------------- Donald C. Burke Chief Executive Officer (principal executive officer) of FDP Series, Inc. EX-99. CERT CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - -------------------------------------------------------------------------------- I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of FDP Series, Inc., certify that: 1. I have reviewed this report on Form N-CSR of FDP Series, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committees of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: July 18, 2008 /s/ Neal J. Andrews - ---------------------- Neal J. Andrews Chief Financial Officer (principal financial officer) of FDP Series, Inc. EX-99.906CERT 3 e604071_ex99-1350cert.txt Exhibit 99.1350CERT Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes Oxley Act Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of FDP Series, Inc. (the "Registrant"), hereby certifies, to the best of his knowledge, that the Registrant's Report on Form N-CSR for the period ended May 31, 2008, (the "Report") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: July 18, 2008 /s/ Donald C. Burke - ---------------------- Donald C. Burke Chief Executive Officer (principal executive officer) of FDP Series, Inc. Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of FDP Series, Inc. (the "Registrant"), hereby certifies, to the best of his knowledge, that the Registrant's Report on Form N-CSR for the period ended May 31, 2008, (the "Report") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: July 18, 2008 /s/ Neal J. Andrews - ---------------------- Neal J. Andrews Chief Financial Officer (principal financial officer) of FDP Series, Inc. This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission. -----END PRIVACY-ENHANCED MESSAGE-----