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.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., 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) 637-3863
Date of fiscal year end: 05/31/07
Date of reporting period: 06/01/06 - 05/31/07
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES
FIXED INCOME LIQUIDITY REAL ESTATE
FDP Series, Inc. BLACKROCK
ANNUAL REPORT | MAY 31, 2007
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
FDP Series, Inc.
Important Tax Information
MFS Research International FDP Fund
The following information is provided with respect to the ordinary income
distributions paid by MFS Research International FDP Fund of FDP Series, Inc.
during the fiscal year ended May 31, 2007:
================================================================================
Record Date August 15, 2006 December 6, 2006
Payable Date August 21, 2006 December 8, 2006
================================================================================
Qualified Dividend
Income for Individuals* 42.59%+ 100.00%+
- --------------------------------------------------------------------------------
Foreign Source Income 34.27%+ 26.11%+
- --------------------------------------------------------------------------------
Foreign Taxes Paid Per Share $ .016308 $ .004403
- --------------------------------------------------------------------------------
Short-Term Capital Gain
Dividends for
Non-U.S. Residents** 78.05% 100.00%
- --------------------------------------------------------------------------------
* The Fund hereby designates the percentages 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
adviser regarding the appropriate treatment of foreign taxes paid.
Additionally, the Fund distributed long-term capital gains of $.017207 per share
to shareholders of record on December 6, 2006.
Van Kampen Value FDP Fund
The following information is provided with respect to the ordinary income
distributions paid by Van Kampen Value FDP Fund of FDP Series, Inc. during the
fiscal year ended May 31, 2007:
================================================================================
Record Date August 15, 2006 December 6, 2006
Payable Date August 21, 2006 December 8, 2006
================================================================================
Qualified Dividend
Income for Individuals 100.00% 100.00%
- --------------------------------------------------------------------------------
Dividends Qualifying for
the Dividends Received
Deduction for Corporations 93.36% 100.00%
- --------------------------------------------------------------------------------
Federal Obligation Interest 4.18%* 9.43%*
- --------------------------------------------------------------------------------
Short-Term Capital Gain
Dividends for
Non-U.S. Residents** 63.65% 44.23%
- --------------------------------------------------------------------------------
* 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 adviser 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.
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, 2007:
================================================================================
Federal Obligation Interest*
================================================================================
Month Paid: June 2006 - May 2007 ...................................... 13.37%
- --------------------------------------------------------------------------------
================================================================================
Interest-Related Dividends for Non-U.S. Residents**
================================================================================
Month Paid: June 2006 ................................................. 90.00%
July 2006 - December 2006 ................................. 89.28%
January 2007 - May 2007 ................................... 74.89%
- --------------------------------------------------------------------------------
* 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 adviser 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.
2 FDP SERIES, INC. MAY 31, 2007
A Letter to Shareholders
Dear Shareholder
The 12 months from May 2006 to May 2007 took global equities on an extraordinary
ride. A sharp correction at the start, the first in almost four years, gave way
to strength in the latter half of 2006 and early 2007. This rally was
interrupted by another set-back at the end of February, before markets resumed
their upward march through May 31. Ultimately, the tailwinds of a generally
favorable global economic backdrop, tame inflation, relatively low interest
rates, still positive earnings growth and attractive valuations prevailed over
the headwinds of a weakening U.S. economy, slowing housing market, escalating
geopolitical concerns and high energy prices. In fact, both the Dow Jones
Industrial Average and the Standard & Poor's 500 Index touched new record highs
following the most recent correction.
Mixed economic signals led to volatile behavior in fixed income markets as well.
However, from the beginning of 2007 through May 31, short-term bond yields
generally fell while longer-term yields increased. This resulted in some
re-steepening of the yield curve, which had been flat to inverted throughout
2006. On a year-over-year basis, yields on 30-year Treasury bonds fell 20 basis
points (.20%) and 10-year yields fell 22 basis points, while bond prices
correspondingly rose. Meanwhile, the Federal Reserve Board (the Fed) has left
the federal funds rate at 5.25% since first pausing in August 2006. While
first-quarter gross domestic product growth of 0.6% represented the slowest rate
of expansion since 2002, the Fed reiterated its view that inflation, not a
slowing economy, remains its primary concern. Many observers interpreted the
Fed's reaction to mean that the economy has hit its low and is bound for renewed
strength, therefore reducing the likelihood of an interest rate cut in the near
future.
Against this backdrop, most major market indexes posted positive returns for the
annual and semi-annual reporting periods ended May 31, 2007, with equities
exhibiting particular strength:
Total Returns as of May 31, 2007 6-month 12-month
============================================================================================================
U.S. equities (Standard & Poor's 500 Index) +10.29% +22.79%
- ------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) + 8.39 +18.92
- ------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +14.08 +26.84
- ------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers Aggregate Bond Index) + 0.69 + 6.66
- ------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 0.30 + 4.84
- ------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) + 6.02 +12.64
- ------------------------------------------------------------------------------------------------------------
We expect market volatility to linger throughout the remainder of 2007. As you
navigate the uncertainties, we encourage you to review your investment goals
with your financial professional and to make portfolio changes, as needed. For
more insight, we invite you to view "What's Ahead in 2007: An Investment
Perspective" and "Are You Prepared for Volatility?" at www.blackrock.com/funds.
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/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
Fund President and Director
FDP SERIES, INC. MAY 31, 2007 3
A Discussion With Your Funds' Portfolio Managers
FDP Series, Inc. is an open-end investment company that consists of four
separate series. We are pleased to present the following commentaries, provided
by each Fund's subadviser.
MFS Research International FDP Fund
How did the Fund perform during the fiscal year in light of the existing market
conditions?
For the 12-month period ended May 31, 2007, MFS Research International FDP
Fund's Institutional, Investor A, Investor B and Investor C Shares had total
returns of +24.62%, +24.24%, +23.34% and +23.39%, respectively. (Fund results
shown do not reflect sales charges and would be lower if sales charges were
included. Complete performance information can be found on pages 10 - 15 of this
report to shareholders.) For the same period, the Fund's benchmark, the Morgan
Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index,
returned +26.84%.
Equity markets rose strongly over the 12-month period amid healthy global
economic growth, strong corporate profit growth and a favorable liquidity
background, which helped to support robust merger-and-acquisition (M&A) activity
across the globe.
European equity markets performed well as economic sentiment on the region
remained relatively buoyant. Corporate earnings continued to exceed expectations
while a wave of private equity and M&A activity further underpinned market
performance. Japanese equities rose as export companies continued to benefit
from strong U.S. and Asian demand. However, Japan's performance lagged the other
major regions as economic data suggested the domestic recovery was taking longer
than expected to materialize. Asia-Pacific and emerging markets shares continued
to deliver strong returns, with China maintaining healthy double-digit gross
domestic product growth and the local stock market benefiting from abundant
liquidity as initial placing activity accelerated.
Utilities and materials were the best-performing sectors in the benchmark index
over the period, while health care and information technology were the main
laggards.
What factors most influenced Fund performance during the period?
Relative to the MSCI EAFE Index, security selection in the financial services
and autos & housing sector were the primary performance detractors. Our
overweight positions in Japanese financial services companies Shinsei Bank Ltd.,
Sumitomo Mitsui Financial Group, Inc.* and Mitsubishi UFJ Financial Group
hindered the Fund's relative performance. Consumer finance firm Aeon Credit
Services Co., Ltd. (Japan) also hurt results. Within the autos & housing sector,
our holdings in Japanese tire maker Bridgestone Corp. and positioning in
Japan-based car manufacturer Honda Motor Co., Ltd. held back Fund performance
relative to the benchmark.
Other individual positions that hurt results included electronics manufacturer
Samsung Electronics Co., Ltd. (South Korea),** pharmaceutical firm
GlaxoSmithKline Plc (U.K.) and oil and gas refiner Statoil ASA (Norway).
The Fund's cash position also hindered relative performance. The Fund holds some
cash to buy new holdings and to provide liquidity. In a period when equity
markets rose, as measured by the Fund's benchmark, holding cash hurt performance
versus the benchmark, which has no cash position.
Conversely, stock selection in the utilities & communications sector was an
important contributor to relative performance. Our investments in the
diversified Canada-based communications and media company Rogers Communications,
Inc.,** Spanish electric utility company Iberdrola SA* and Norway-based
telecommunications company Telenor ASA were among the Fund's top relative
performers.
Although the health care sector underperformed the overall benchmark for the
period, strong stock selection within the sector boosted the Fund's relative
results. Our investments in Swiss biopharmaceutical company Actelion Ltd.** and
an overweight position in German health care products maker Bayer AG were among
the largest contributors to relative performance.
* Security was not held in the portfolio at period-end.
** Security is not a benchmark constituent.
4 FDP SERIES, INC. MAY 31, 2007
Stocks in other sectors that supported investment results included holdings in
several non-benchmark constituent securities. These included our investments in
Brazilian banking firm Uniao de Bancos Brasileiros,** South Korea-based steel
producer Posco ADS*/** and Mexican television broadcaster Grupo Televisa SA.**
Our avoidance of poor-performing BP Amoco (U.K.)* and Mizuho Financial Group
(Japan)* also helped.
What changes were made to the portfolio during the period?
We saw strong performance from our off-index positions in emerging markets,
which prompted us to take profits and reduce the Fund's exposure to these
countries. We believe many of the names we owned now represent fair value.
Also during the period, the benchmark's exposure to Japan was lowered. As a
result, our relative underweight position in Japan was reduced, closing the gap
somewhat versus the benchmark weighting. Nevertheless, the Fund remains
underweight in Japan.
How would you characterize the Fund's position at the close of the period?
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. Having said that, we continue to see
positive economic trends in non-U.S. markets. Growth in gross domestic product
in both Europe and Asia is trending higher while U.S. economic growth is
contracting. Additionally, earnings expectations for non-U.S. markets are
expected to be higher than those of the United States. If these trends continue,
we believe the portfolio should benefit from our positions in some of the
consumer-related sectors.
Jose Luis Garcia
Portfolio Manager
Thomas Melendez
Portfolio Manager
Massachusetts Financial Services Company
Marsico Growth FDP Fund
How did the Fund perform during the fiscal year in light of the existing market
conditions?
For the 12-month period ended May 31, 2007, the Institutional, Investor A,
Investor B and Investor C Shares of Marsico Growth FDP Fund had total returns of
+15.42%, +15.06%, +14.12% and +14.22%, respectively. (Fund results shown do not
reflect sales charges and would be lower if sales charges were included.
Complete performance information can be found on pages 10 - 15 of this report to
shareholders.) For the same period, the Fund's primary benchmark, the Standard &
Poor's 500 (S&P 500) Index, returned +22.79%.
U.S. equities posted solid gains during the 12-month period, weathering a
variety of challenges in the process. Chief among them were interest rate and
inflation concerns, housing market weakness and geopolitical worries. But
equities seemed to be buoyed by signs of waning inflationary pressures, high
levels of merger-and-acquisition activity and global liquidity growth.
Large-capitalization equity benchmarks, specifically the S&P 500 and Russell
1000 indexes, had total returns of +22.79% and +22.93%, respectively, for the
12-month period ended May 31, 2007.
From a sector perspective (using GICS classifications for the S&P 500 Index as a
reference point), gains were relatively widespread. All 10 sectors in the S&P
500 Index had positive returns. Telecommunication services (+50%), utilities
(+36%) and materials (+31%) were the top-performing sectors. Energy (+29%),
information technology (+23%), health care (+23%), consumer discretionary (+21%)
and financials (+19%) also had solid absolute returns.
At the industry level, similar general strength prevailed, with each industry
group posting positive returns. In several areas, these gains were quite robust
in nature. The top-performing groups included real estate (+34%), automobiles &
components (+28%), software & services (+27%), technology hardware & equipment
(+24%), consumer durables & apparel (+24%), and pharmaceuticals, biotechnology &
life sciences (23%).
FDP SERIES, INC. MAY 31, 2007 5
A Discussion With Your Funds' Portfolio Managers (continued)
What factors most influenced Fund performance during the period?
The Fund underperformed the S&P 500 Index for the reporting period. Stock
selection within the energy sector detracted materially from the Fund's
performance. Specific individual holdings that impacted performance included
Peabody Energy Corp. (-33% prior to being sold), whose principal activity is
coal mining, and Halliburton Co. (-24% prior to being sold), an oil equipment
and services provider. The Fund's underweight posture in energy also hurt
performance, as it was among the stronger-performing sectors in the benchmark
index.
Stock selection and positioning in the health care sector, which has been a
major area of emphasis for the Fund for an extended period of time, also were
significant negatives in terms of Fund performance for the fiscal period. In the
pharmaceuticals, biotechnology & life sciences industry, the Fund's holdings had
a collective return of -2% for the 12-month period. These positions included
Merck & Co. (-4% prior to being sold) and Genentech, Inc. (-4%). These results
compared quite unfavorably to the benchmark index's industry group return of
+23%.
There were several areas of strength for the Fund during the reporting period.
Positions in diversified financials company Goldman Sachs Group (+52%), health
services provider UnitedHealth Group (+25%) and Latin American mobile
communications provider America Movil (+85%) contributed positively to
performance during the reporting period. Consumer discretionary holdings such as
MGM Mirage (+92%) and Comcast Corp. (+28%) also aided performance results.
What changes were made to the portfolio during the period?
During the reporting period, the portfolio's average sector allocations
emphasized the consumer discretionary, financials, industrials and health care
sectors. On average, the energy, information technology and utilities sectors
were significantly underweighted relative to the portfolio's primary benchmark,
the S&P 500 Index. Sector weightings are primarily a residual of our stock
selection process.
How would you characterize the Fund's position at the close of the period?
As of May 31, 2007, the portfolio's most significant economic sector allocations
were in consumer discretionary, financials, industrials and health care.
Conversely, the portfolio ended the period with little exposure to utilities.
Thomas F. Marsico
Portfolio Manager
Marsico Capital Management, LLC
6 FDP SERIES, INC. MAY 31, 2007
Van Kampen Value FDP Fund
How did the Fund perform during the fiscal year in light of the existing market
conditions?
For the 12-month period ended May 31, 2007, the Institutional, Investor A,
Investor B and Investor C Shares of Van Kampen Value FDP Fund had total returns
of +20.95%, +20.65%, +19.67% and +19.67%, respectively. (Fund results shown do
not reflect sales charges and would be lower if sales charges were included.
Complete performance information can be found on pages 10 - 15 of this report to
shareholders.) For the same period, the Fund's benchmarks, the Russell 1000
Value Index and the Standard & Poor's 500 (S&P 500) Index, posted respective
returns of +25.58% and +22.79%, respectively.
Relative to the Russell 1000 Value Index, the Fund underperformed mainly as a
result of three areas: health care, utilities and energy. The Fund's
longstanding overweight in the health care sector (composed largely of
pharmaceuticals stocks) detracted from results as the sector was hit hard in the
fourth quarter of 2006 by expectations that the new Democratic majority in
Congress would pursue legislation unfavorable to the industry. Although the
stocks had begun to recover year-to-date through May 2007, the gains did not
sufficiently offset the declines of the fourth quarter. A lack of exposure to
the utilities and energy sectors was another source of weakness over this
period. The Fund has maintained considerable underweights in these sectors for
the past few years; the expensive valuations of many utilities and energy stocks
have provided few opportunities to invest the Fund in what we consider to be
attractively valued stocks.
However, the Fund achieved positive results relative to the Russell 1000 Value
Index in other areas. In the financials sector, our stock selection and
resultant underweight helped the Fund avoid those stocks exposed to the inverted
yield curve (which causes profit margins to contract for banks) and the subprime
mortgage market woes (which dragged down banks and other consumer finance
companies). The consumer discretionary sector, in which the Fund holds a number
of media stocks, also contributed positively. After struggling for many years in
a slumping industry environment, several of the Fund's media holdings performed
very well in the past year.
Relative to the S&P 500 Index, positive attribution came from the Fund's
investments in the consumer discretionary sector (primarily media stocks), stock
selection and the resulting underweight position in the technology sector (the
S&P 500 Index's weakest-performing sector for the year), and stock selection in
the consumer staples sector (primarily due to a food stock and a diversified
consumer goods stock). The sectors that hampered performance relative to the S&P
500 Index were utilities and energy, in which the Fund had relatively less
exposure.
What changes were made to the portfolio during the period?
During the period, we did not make any major changes to the Fund's long-term
positioning, although we did trim (and in one case eliminate) selected positions
in the telecommunication services sector based on company-specific fundamental
and valuation factors.
How would you characterize the Fund's position at the close of the period?
Investors have continued to favor cyclical stocks (those stocks whose
performance is highly correlated to the economic cycle) -- and in particular,
energy stocks -- for what seems like a protracted period. However, the expensive
valuations in these areas of the market indicate to us that investors have
continued to overlook the considerable downside of these stocks in a
decelerating economic environment. Rather than chase such short-term,
unsustainable performance, we continue to seek stocks with reasonable valuations
relative to our assessment of fair value. As a result, all sector weights are
built from the bottom up, driven by the valuation opportunities presented by
individual companies and not by economic or market forecasts. On that basis, the
Fund has remained in a "defensive" posture for some time -- that is, having
greater exposure to those companies whose earnings growth does not depend on the
economic cycle, including notable weights in health care, consumer discretionary
and consumer staples stocks. The utilities, energy and other cyclical sectors
(such as materials and industrials) continued to be underweight relative to the
Russell 1000 Value Index.
B. Robert Baker, Jr.
Portfolio Manager
Jason S. Leder
Portfolio Manager
Kevin C. Holt
Portfolio Manager
Van Kampen Asset Management
FDP SERIES, INC. MAY 31, 2007 7
A Discussion With Your Funds' Portfolio Managers (concluded)
Franklin Templeton Total Return FDP Fund
How did the Fund perform during the fiscal year in light of the existing market
conditions?
For the 12-month period ended May 31, 2007, the Institutional, Investor A,
Investor B and Investor C Shares of Franklin Templeton Total Return FDP Fund had
total returns of +6.97%, +6.71%, +6.15% and +6.10%, respectively. (Fund results
shown do not reflect sales charges and would be lower if sales charges were
included. Complete performance information can be found on pages 10 - 15 of this
report to shareholders.) For the same period, the Fund's benchmark, the Lehman
Brothers Universal Index, returned +7.24%. Going forward, the Fund will
benchmark to the Lehman Brothers Aggregate Bond Index, a more widely accepted
benchmark for a fund of this type. This index returned +6.66% for the 12-month
period ended May 31, 2007.
U.S. economic growth slowed somewhat over the 12 months ended May 31, 2007.
Overall, several factors contributed to the rate of real growth. A tight labor
market and higher personal incomes helped support consumer spending. Although a
slowing housing market and moderating profit growth dampened economic expansion,
consumer spending for durable goods as well as state and local government
spending contributed to growth in the first quarter of 2007.
Oil prices were volatile and reached a record high in July 2006 before
moderating somewhat. Headline (or overall) inflation and core inflation (which
excludes food and energy costs) experienced some upward pressure. In April 2007,
the headline Consumer Price Index (CPI) reported a 12-month rise of 2.6%, while
core CPI increased 2.3%, according to data from the Bureau of Labor Statistics.
The Federal Reserve Board (the Fed) raised the federal funds target rate to
5.25% in June 2006 and kept the rate steady through the end of the reporting
period. In March 2007, the Fed changed its stance and appeared to drop its
long-held tightening bias, but indicated that core inflation was somewhat
elevated and remained a key concern. Nevertheless, the markets continued to
expect that the Fed would lower its target rate, although the exact timing was
still uncertain at period-end.
The 10-year Treasury note yield fell from 5.11% at the beginning of the period
to 4.75% on May 31, 2007. The intermediate portion of the yield curve often
reflects market expectations of the future direction of inflation. A relatively
moderate inflation environment, as well as some concerns about the slowing
housing market and its potential effect on the economy, contributed to this
decline in interest rates.
What factors most influenced Fund performance?
During the year under review, the Fund's non-U.S.-dollar investments continued
to provide strong relative returns, as many foreign currencies appreciated
versus the U.S. dollar. In addition, the Fund's sector and coupon allocations
relative to the benchmark also contributed positively to Fund returns.
There were no major detractors from Fund performance that we could identify.
What changes were made to the portfolio during the period?
As we looked for new opportunities, our major investment sectors did not change
dramatically over the past 12 months. We invested in a diversified portfolio of
fixed income securities and continued to find value in international markets. We
looked to peripheral (non-euro) European and non-Japan Asian debt to attempt to
benefit from a potential continued decline in the value of the U.S. dollar.
However, we also searched through more traditional non-dollar sectors, such as
Japan, as we found many related securities offering what we considered
attractive fundamentals.
8 FDP SERIES, INC. MAY 31, 2007
How would you characterize the Fund's position at the close of the period?
Our analysis leads us to believe that the U.S. economy should continue to expand
during the remainder of 2007, though headwinds such as a slumping housing market
could dampen growth. We believe that corporate credit default rates may remain
subdued in the near term. However, risk premiums (the additional yield offered
to investors to assume higher credit risk) remained narrow for a broad range of
fixed income asset classes. In this environment, we sought what we considered to
be more defensive positions within the corporate bond sector. Following our
multi-sector strategy, we compared Treasuries at each part of the yield curve
with agency debentures, agency mortgages, asset-backed securities and commercial
mortgage backed securities (CMBS). Among these higher-quality asset classes, we
felt we were finding some of our best opportunities in CMBS. We believe there
was a strong case for mortgage-related securities as a core holding across
cycles, largely due to their income-generating characteristics and historically
lower volatility than many comparable credit-quality assets.
We thank you for your investment in Franklin Templeton Total Return FDP Fund,
and we look forward to updating you in our next report to shareholders.
Roger A. Bayston, CFA
Portfolio Manager
Franklin Advisers, Inc.
FDP SERIES, INC. MAY 31, 2007 9
Performance Data
About Fund Performance
Effective October 2, 2006, the Fund's Class A, Class B, Class C and Class I
Shares were redesignated Investor A, Investor B, Investor C and Institutional
Shares, respectively. As previously communicated to shareholders, new sales
charge schedules came into effect at the same time for certain of these classes.
Shares are only available for purchase through the FDP Service. The Fund has
multiple classes of shares:
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.) All returns for periods greater than
eight years reflect this conversion.
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 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
each of the following tables 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'
Investment Adviser waived a portion of its fees. Without such waiver, the Funds'
performance would have been lower.
10 FDP SERIES, INC. MAY 31, 2007
Performance Data (continued)
Recent Performance Results
6-Month 12-Month Since Inception Standardized
As of May 31, 2007 Total Return Total Return Total Return 30-Day Yield
MFS Research International FDP Fund Institutional Shares* +12.14% +24.62% +52.16% --
MFS Research International FDP Fund Investor A Shares* +11.95 +24.24 +51.45 --
MFS Research International FDP Fund Investor B Shares* +11.58 +23.34 +49.36 --
MFS Research International FDP Fund Investor C Shares* +11.64 +23.39 +49.42 --
MSCI Europe, Australasia and Far East Index** +14.08 +26.84 +57.56 --
Marsico Growth FDP Fund Institutional Shares* + 8.71 +15.42 +23.50 --
Marsico Growth FDP Fund Investor A Shares* + 8.66 +15.06 +23.00 --
Marsico Growth FDP Fund Investor B Shares* + 8.12 +14.12 +21.20 --
Marsico Growth FDP Fund Investor C Shares* + 8.21 +14.22 +21.30 --
S&P 500(R) Index*** +10.29 +22.79 +28.20 --
Van Kampen Value FDP Fund Institutional Shares* +11.25 +20.95 +27.67 --
Van Kampen Value FDP Fund Investor A Shares* +11.14 +20.65 +27.16 --
Van Kampen Value FDP Fund Investor B Shares* +10.63 +19.67 +25.36 --
Van Kampen Value FDP Fund Investor C Shares* +10.69 +19.67 +25.40 --
S&P 500 Index*** +10.29 +22.79 +28.20 --
Russell 1000(R) Value Index+ +11.21 +25.58 +35.79 --
Franklin Templeton Total Return FDP Fund Institutional Shares* + 1.02 + 6.97 + 6.39 4.35%
Franklin Templeton Total Return FDP Fund Investor A Shares* + 0.89 + 6.71 + 5.90 3.94
Franklin Templeton Total Return FDP Fund Investor B Shares* + 0.63 + 6.15 + 4.89 3.58
Franklin Templeton Total Return FDP Fund Investor C Shares* + 0.60 + 6.10 + 4.79 3.54
Lehman Brothers Aggregate Bond Index++ + 0.69 + 6.66 + 6.52 --
Lehman Brothers U.S. Universal Index+++ + 1.09 + 7.24 + 7.57 --
* Investment results shown do not reflect sales charges; results shown would
be lower if a sales charge was included. Cumulative total investment
returns are based on changes in net asset values for the periods shown,
and assume reinvestment of all dividends and capital gains distributions
at net asset value on the ex-dividend date for MFS Research International
FDP Fund, the Marsico Growth FDP Fund and the Van Kampen Value FDP Fund.
Cumulative total investment returns are based on changes in net asset
values for the periods shown and assume reinvestment of all dividends and
capital gains distributions at net asset value on the payable date for
Franklin Templeton Total Return FDP Fund. The Funds commenced operations
on 7/27/05.
** This unmanaged broad-based Index measures the total returns of developed
foreign stock markets in Europe, Australasia and the Far East. Since
inception total return is from 7/27/05.
*** 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 market capitalization and 30% of
NYSE issues. Since inception total return is from 7/27/05.
+ 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. Since inception total return is from
7/27/05.
++ 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. Since
inception total return is from 7/27/05.
+++ This unmanaged broad-based Index represents the union of the U.S.
Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index, the
Eurodollar Index, the Emerging Markets Index, the non-ERISA portion of the
CMBS Index and the CMBS High-Yield Index. Municipal debt, private
placements and non-dollar-denominated issues are excluded from the
Universal Index. The only constituent of the Index that includes
floating-rate debt is the Emerging Markets Index. Since inception total
return is from 7/27/05.
S&P 500 is a trademark of the McGraw-Hill Companies.
Russell 1000 is a registered trademark of the Frank Russell Company.
FDP SERIES, INC. MAY 31, 2007 11
Performance Data (continued) 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,
Investor A, Investor B and Investor C Shares compared to growth of an investment
in the MSCI Europe, Australasia and Far East Index. Values are from July 27,
2005 to May 2007.
MSCI Europe,
Institutional Investor A Investor B Investor C Australasia and
Shares*+ Shares*+ Shares*+ Shares*+ Far East Index++
7/27/05** $10,000 $9,475 $10,000 $10,000 $10,000
5/06 $12,210 $11,550 $12,110 $12,110 $12,422
5/07 $15,216 $14,350 $14,536 $14,942 $15,756
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including administration fees.
** Commencement of operations.
+ 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.
++ This unmanaged broad-based Index measures the total returns of developed
foreign stock markets in Europe, Australasia and the Far East.
Past performance is not indicative of future results.
Average Annual Total Return
Return
================================================================================
Institutional Shares
================================================================================
One Year Ended 5/31/07 +24.62%
- --------------------------------------------------------------------------------
Inception (7/27/05) through 5/31/07 +25.57
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor B Shares+
================================================================================
One Year Ended 5/31/07 +23.34% +18.84%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +24.31 +22.49
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 5/31/07 +24.24% +17.72%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +25.25 +21.64
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor C Shares++
================================================================================
One Year Ended 5/31/07 +23.39% +22.39%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +24.34 +24.34
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 5.25%.
+ Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
++ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
+++ Assuming payment of applicable contingent deferred sales charge.
12 FDP SERIES, INC. MAY 31, 2007
Performance Data (continued) 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,
Investor A, Investor B and Investor C Shares compared to growth of an investment
in the S&P 500(R) Index. Values are from July 27, 2005 to May 2007.
Institutional Investor A Investor B Investor C S&P 500(R)
Shares*+ Shares*+ Shares*+ Shares*+ Index++
7/27/05** $10,000 $9,475 $10,000 $10,000 $10,000
5/06 $10,700 $10,129 $10,620 $10,620 $10,440
5/07 $12,350 $11,654 $11,720 $12,130 $12,820
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including administration fees.
** Commencement of operations.
+ Marsico Growth FDP Fund invests primarily in equity securities of large
cap companies that are selected for their growth potential.
++ 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.
Past performance is not indicative of future results.
Average Annual Total Return
Return
================================================================================
Institutional Shares
================================================================================
One Year Ended 5/31/07 +15.42%
- --------------------------------------------------------------------------------
Inception (7/27/05) through 5/31/07 +12.13
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor B Shares+
================================================================================
One Year Ended 5/31/07 +14.12% + 9.62%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +10.99 + 8.99
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 5/31/07 +15.06% + 9.02%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +11.88 + 8.66
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor C Shares++
================================================================================
One Year Ended 5/31/07 +14.22% +13.22%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +11.04 +11.04
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 5.25%.
+ Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
++ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
+++ Assuming payment of applicable contingent deferred sales charge.
FDP SERIES, INC. MAY 31, 2007 13
Performance Data (continued) 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,
Investor A, Investor B and Investor C Shares compared to growth of an investment
in the Russell 1000 Value Index. Values are from July 27, 2005 to May 2007.
Russell
Institutional Investor A Investor B Investor C 1000 Value
Shares*+ Shares*+ Shares*+ Shares*+ Index
7/27/05** $10,000 $9,475 $10,000 $10,000 $10,000
5/06 $10,556 $9,986 $10,476 $10,478 $10,813
5/07 $12,767 $12,048 $12,136 $12,540 $13,579
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including administration fees.
** Commencement of operations.
+ Van Kampen Value FDP Fund invests, under normal market conditions,
primarily in a portfolio of equity securities, consisting principally of
common stocks.
++ 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.
Past performance is not indicative of future results.
Average Annual Total Return
Return
================================================================================
Institutional Shares
================================================================================
One Year Ended 5/31/07 +20.95%
- --------------------------------------------------------------------------------
Inception (7/27/05) through 5/31/07 +14.17
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor B Shares+
================================================================================
One Year Ended 5/31/07 +19.67% +15.17%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +13.04 +11.07
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 5/31/07 +20.65% +14.32%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +13.92 +10.63
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor C Shares++
================================================================================
One Year Ended 5/31/07 +19.67% +18.67%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +13.06 +13.06
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 5.25%.
+ Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
++ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
+++ Assuming payment of applicable contingent deferred sales charge.
14 FDP SERIES, INC. MAY 31, 2007
Performance Data (concluded) 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,
Investor A, Investor B and Investor C Shares compared to growth of an investment
in the Lehman Brothers U.S. Universal Index. Values are from July 27, 2005 to
May 2007.
Lehman Lehman
Brothers Brothers
Institutional Investor A Investor B Investor C Aggregate U.S. Universal
Shares*+ Shares*+ Shares*+ Shares*+ Index++ Index+++
7/27/05** $10,000 $9,600 $10,000 $10,000 $10,000 $10,000
5/06 $9,945 $9,528 $9,881 $9,877 $9,987 $10,031
5/07 $10,639 $10,166 $10,094 $10,479 $10,652 $10,757
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including administration fees.
** Commencement of operations.
+ Franklin Templeton Total Return FDP Fund invests, under normal market
conditions, at least 85% of its assets in investment grade debt
securities.
++ 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. Since
inception total return is from 7/27/05.
+++ This unmanaged broad-based Index represents the union of the U.S.
Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index, the
Eurodollar Index, the Emerging Markets Index, the non-ERISA portion of the
CMBS Index and the CMBS High-Yield Index. Municipal debt, private
placements and non-dollar-denominated issues are excluded from the
Universal Index. The only constituent of the Index that includes
floating-rate debt is the Emerging Markets Index.
Past performance is not indicative of future results.
Average Annual Total Return
Return
================================================================================
Institutional Shares
================================================================================
One Year Ended 5/31/07 +6.97%
- --------------------------------------------------------------------------------
Inception (7/27/05) through 5/31/07 +3.41
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor B Shares+
================================================================================
One Year Ended 5/31/07 +6.15% +2.15%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +2.62 +0.51
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 5/31/07 +6.71% +2.44%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +3.16 +0.90
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor C Shares++
================================================================================
One Year Ended 5/31/07 +6.10% +5.10%
- --------------------------------------------------------------------------------
Inception (7/27/05)
through 5/31/07 +2.57 +2.57
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 4%.
+ Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
++ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
+++ Assuming payment of applicable contingent deferred sales charge.
FDP SERIES, INC. MAY 31, 2007 15
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 following example (which is
based on a hypothetical investment of $1,000 invested on December 1, 2006 and
held through May 31, 2007) is intended to assist shareholders both in
calculating expenses based on an investment in each Fund and in comparing these
expenses with similar costs of investing in other mutual funds.
The first table of each Fund provides 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 in the first line under the
heading entitled "Expenses Paid During the Period."
The second table of each Fund provides information about hypothetical account
values and hypothetical expenses based on the 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 second table is 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
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value December 1, 2006
December 1, 2006 May 31, 2007 to May 31, 2007
================================================================================
Actual
================================================================================
Institutional $1,000 $1,119.50 $ 7.03
- --------------------------------------------------------------------------------
Investor A $1,000 $1,121.40 $ 8.36
- --------------------------------------------------------------------------------
Investor B $1,000 $1,115.80 $ 12.45
- --------------------------------------------------------------------------------
Investor C $1,000 $1,116.40 $ 12.40
================================================================================
Hypothetical (5% annual return before expenses)**
================================================================================
Institutional $1,000 $1,018.27 $ 6.69
- --------------------------------------------------------------------------------
Investor A $1,000 $1,017.02 $ 7.95
- --------------------------------------------------------------------------------
Investor B $1,000 $1,013.13 $ 11.84
- --------------------------------------------------------------------------------
Investor C $1,000 $1,013.18 $ 11.80
- --------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.33% for Institutional, 1.58% for Investor A, 2.36%
for Investor B and 2.35% for Investor C), multiplied by the average
account value over the period, multiplied by 182/365 (to reflect the
one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
16 FDP SERIES, INC. MAY 31, 2007
Disclosure of Expenses (continued)
Marsico Growth FDP Fund
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value December 1, 2006
December 1, 2006 May 31, 2007 to May 31, 2007
================================================================================
Actual
================================================================================
Institutional $1,000 $1,087.10 $ 6.09
- --------------------------------------------------------------------------------
Investor A $1,000 $1,086.60 $ 7.39
- --------------------------------------------------------------------------------
Investor B $1,000 $1,081.20 $ 11.42
- --------------------------------------------------------------------------------
Investor C $1,000 $1,082.10 $ 11.37
================================================================================
Hypothetical (5% annual return before expenses)**
================================================================================
Institutional $1,000 $1,019.07 $ 5.89
- --------------------------------------------------------------------------------
Investor A $1,000 $1,017.82 $ 7.14
- --------------------------------------------------------------------------------
Investor B $1,000 $1,013.93 $ 11.05
- --------------------------------------------------------------------------------
Investor C $1,000 $1,013.98 $ 11.00
- --------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.17% for Institutional, 1.42% for Investor A, 2.20%
for Investor B and 2.19% for Investor C), multiplied by the average
account value over the period, multiplied by 182/365 (to reflect the
one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
Van Kampen Value FDP Fund
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value December 1, 2006
December 1, 2006 May 31, 2007 to May 31, 2007
================================================================================
Actual
================================================================================
Institutional $1,000 $1,112.50 $ 5.64
- --------------------------------------------------------------------------------
Investor A $1,000 $1,111.40 $ 6.95
- --------------------------------------------------------------------------------
Investor B $1,000 $1,106.30 $ 11.03
- --------------------------------------------------------------------------------
Investor C $1,000 $1,106.90 $ 10.98
================================================================================
Hypothetical (5% annual return before expenses)**
================================================================================
Institutional $1,000 $1,019.56 $ 5.39
- --------------------------------------------------------------------------------
Investor A $1,000 $1,018.32 $ 6.64
- --------------------------------------------------------------------------------
Investor B $1,000 $1,014.43 $ 10.55
- --------------------------------------------------------------------------------
Investor C $1,000 $1,014.48 $ 10.50
- --------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.07% for Institutional, 1.32% for Investor A, 2.10%
for Investor B and 2.09% for Investor C), multiplied by the average
account value over the period, multiplied by 182/365 (to reflect the
one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
FDP SERIES, INC. MAY 31, 2007 17
Disclosure of Expenses (concluded)
Franklin Templeton Total Return FDP Fund
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value December 1, 2006
December 1, 2006 May 31, 2007 to May 31, 2007
================================================================================
Actual
================================================================================
Institutional $1,000 $1,010.20 $ 3.96
- --------------------------------------------------------------------------------
Investor A $1,000 $1,008.90 $ 5.21
- --------------------------------------------------------------------------------
Investor B $1,000 $1,006.30 $ 7.90
- --------------------------------------------------------------------------------
Investor C $1,000 $1,006.00 $ 8.10
================================================================================
Hypothetical (5% annual return before expenses)**
================================================================================
Institutional $1,000 $1,020.96 $ 3.98
- --------------------------------------------------------------------------------
Investor A $1,000 $1,019.71 $ 5.24
- --------------------------------------------------------------------------------
Investor B $1,000 $1,017.02 $ 7.95
- --------------------------------------------------------------------------------
Investor C $1,000 $1,016.82 $ 8.15
- --------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.79% for Institutional, 1.04% for Investor A, 1.58%
for Investor B and 1.62% for Investor C), multiplied by the average
account value over the period, multiplied by 182/365 (to reflect the
one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
18 FDP SERIES, INC. MAY 31, 2007
Portfolio Information as of May 31, 2007
Geographic Allocation
Percent of
MFS Research International FDP Fund Total Investments
- --------------------------------------------------------------------------------
United Kingdom .......................................... 21.1%
Japan ................................................... 15.5
Germany ................................................. 13.6
France .................................................. 11.9
Switzerland ............................................. 9.7
Italy ................................................... 3.9
Netherlands ............................................. 2.6
South Korea ............................................. 2.1
Norway .................................................. 2.0
Brazil .................................................. 1.7
Australia ............................................... 1.7
Spain ................................................... 1.4
Hong Kong ............................................... 1.2
Ireland ................................................. 1.1
India ................................................... 1.1
Belgium ................................................. 1.0
Greece .................................................. 0.8
Mexico .................................................. 0.8
Austria ................................................. 0.7
Canada .................................................. 0.6
Thailand ................................................ 0.6
Russia .................................................. 0.6
Israel .................................................. 0.5
Philippines ............................................. 0.5
Singapore ............................................... 0.5
Turkey .................................................. 0.4
South Africa ............................................ 0.3
Taiwan .................................................. 0.0
Other* .................................................. 2.1
- --------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments.
Ten Largest Holdings
Percent of
MFS Research International FDP Fund Net Assets
- --------------------------------------------------------------------------------
HSBC Holdings Plc ....................................... 3.1%
E.ON AG ................................................. 2.4
Royal Dutch Shell Plc ................................... 2.4
BHP Billiton Plc ........................................ 2.3
Nestle SA Registered Shares ............................. 2.2
Total SA ................................................ 2.1
Linde AG ................................................ 2.1
UBS AG .................................................. 2.0
Credit Agricole SA ...................................... 2.0
WPP Group Plc ........................................... 1.9
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Percent of
Marsico Growth FDP Fund Net Assets
- --------------------------------------------------------------------------------
UnitedHealth Group, Inc. ................................ 6.0%
The Goldman Sachs Group, Inc. ........................... 3.5
Schlumberger Ltd. ....................................... 3.3
Genentech, Inc. ......................................... 3.2
UBS AG .................................................. 3.0
Comcast Corp. Class A ................................... 3.0
Las Vegas Sands Corp. ................................... 2.9
Burlington Northern Santa Fe Corp. ...................... 2.8
McDonald's Corp. ........................................ 2.8
MGM Mirage .............................................. 2.5
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Percent of
Van Kampen Value FDP Fund Net Assets
- --------------------------------------------------------------------------------
Citigroup, Inc. ......................................... 4.0%
The Coca-Cola Co. ....................................... 3.2
International Paper Co. ................................. 3.0
Bristol-Myers Squibb Co. ................................ 3.0
Bank of America Corp. ................................... 2.9
Wyeth ................................................... 2.8
Verizon Communications, Inc. ............................ 2.7
Comcast Corp. Class A ................................... 2.5
Wal-Mart Stores, Inc. ................................... 2.5
Viacom, Inc. Class B .................................... 2.4
- --------------------------------------------------------------------------------
FDP SERIES, INC. MAY 31, 2007 19
Portfolio Information as of May 31, 2007 (concluded)
Sector Representation
Percent of
MFS Research International FDP Fund Total Investments
- --------------------------------------------------------------------------------
Financials .............................................. 29.3%
Consumer Discretionary .................................. 12.0
Materials and Processing ................................ 10.6
Information Technology .................................. 10.5
Energy .................................................. 8.0
Industrials ............................................. 7.9
Consumer Staples ........................................ 6.8
Telecommunication Services .............................. 5.3
Utilities ............................................... 4.4
Auto and Transportation ................................. 2.5
Health Care ............................................. 0.6
Other* .................................................. 2.1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Percent of
Marsico Growth FDP Fund Total Investments
- --------------------------------------------------------------------------------
Consumer Discretionary .................................. 19.9%
Financials .............................................. 15.2
Industrials ............................................. 14.4
Health Care ............................................. 13.3
Information Technology .................................. 9.7
Telecommunication Services .............................. 6.2
Materials and Processing ................................ 5.8
Consumer Staples ........................................ 5.8
Energy .................................................. 3.8
Other* .................................................. 5.9
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Percent of
Van Kampen Value FDP Fund Total Investments
- --------------------------------------------------------------------------------
Financials .............................................. 22.8%
Health Care ............................................. 19.0
Consumer Staples ........................................ 17.0
Consumer Discretionary .................................. 12.2
Materials and Processing ................................ 7.7
Information Technology .................................. 7.2
Telecommunication Services .............................. 4.2
Industrials ............................................. 1.8
Other* .................................................. 8.1
- --------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments.
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. Industry
classifications are shown as a percent of net assets.
Five Largest Industries
Percent of
MFS Research International FDP Fund Net Assets
- --------------------------------------------------------------------------------
Commercial Banks ........................................ 22.0%
Oil, Gas & Consumable Fuels ............................. 7.7
Chemicals ............................................... 6.0
Pharmaceuticals ......................................... 5.0
Capital Markets ......................................... 3.6
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Percent of
Marsico Growth FDP Fund Net Assets
- --------------------------------------------------------------------------------
Hotels, Restaurants & Leisure ........................... 11.8%
Capital Markets ......................................... 8.4
Aerospace & Defense ..................................... 7.1
Health Care Providers & Services ........................ 6.0
Biotechnology ........................................... 5.4
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Percent of
Van Kampen Value FDP Fund Net Assets
- --------------------------------------------------------------------------------
Pharmaceuticals ......................................... 16.7%
Media ................................................... 10.1
Diversified Financial Services .......................... 8.5
Insurance ............................................... 5.9
Food Products ........................................... 5.5
- --------------------------------------------------------------------------------
Quality Ratings by S&P/Moody's
- --------------------------------------------------------------------------------
Percent of
Franklin Templeton Total Return FDP Fund Total Investments
- --------------------------------------------------------------------------------
AAA/Aaa ................................................. 65.3%
AA/Aa ................................................... 2.5
A/A ..................................................... 3.9
BBB/Baa ................................................. 3.8
BB/Ba ................................................... 1.0
B/B ..................................................... 1.8
CCC/Caa ................................................. 0.1
NR (Not Rated) .......................................... 8.9
Other* .................................................. 12.7
- --------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments.
Asset Mix
- --------------------------------------------------------------------------------
Percent of
Franklin Templeton Total Return FDP Fund Total Investments
- --------------------------------------------------------------------------------
Government Agency Mortgage-Backed
Securities .............................................. 29.4%
Government & Agency Obligations ......................... 19.1
Corporate Bonds ......................................... 11.2
Asset-Backed Securities ................................. 11.0
Non-Government Agency Mortgage-Backed
Securities .............................................. 9.0
Foreign Government Obligations .......................... 6.7
Preferred Securities .................................... 1.0
Other* .................................................. 12.6
- --------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments.
20 FDP SERIES, INC. MAY 31, 2007
Schedule of Investments as of May 31, 2007
MFS Research International FDP Fund (in U.S. dollars)
Shares
Industry Common Stocks Held Value
================================================================================
Australia -- 1.7%
Capital Markets -- 0.3%
Macquarie Bank Ltd. 7,181 $ 520,888
-----------------------------------------------------------------------
Diversified Financial
Services -- 1.2%
Suncorp-Metway Ltd. 120,200 2,106,083
-----------------------------------------------------------------------
Textiles, Apparel & Luxury
Goods -- 0.2%
Billabong International Ltd. 18,140 278,035
-----------------------------------------------------------------------
Total Common Stocks in Australia 2,905,006
================================================================================
Austria -- 0.8%
Commercial Banks -- 0.8%
Erste Bank der Oesterreichischen
Sparkassen AG 16,898 1,325,574
-----------------------------------------------------------------------
Total Common Stocks in Austria 1,325,574
================================================================================
Belgium -- 1.0%
Chemicals -- 1.0%
Umicore SA 8,470 1,807,763
-----------------------------------------------------------------------
Total Common Stocks in Belgium 1,807,763
================================================================================
Brazil -- 1.7%
Commercial Banks -- 1.0%
Uniao de Bancos Brasileiros SA (a) 15,870 1,782,360
-----------------------------------------------------------------------
Consumer Finance -- 0.2%
CSU Cardsystem SA (b) 56,510 345,649
-----------------------------------------------------------------------
Electric Utilities -- 0.1%
Equatorial Energia SA 19,230 195,603
-----------------------------------------------------------------------
Internet Software &
Services -- 0.2%
Universo Online SA (b) 60,900 393,108
-----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 0.2%
Petroleo Brasileiro SA (a) 3,240 350,438
-----------------------------------------------------------------------
Total Common Stocks in Brazil 3,067,158
================================================================================
Canada -- 0.6%
Diversified Telecommunication
Services -- 0.3%
TELUS Corp. 9,290 565,339
-----------------------------------------------------------------------
Wireless Telecommunication
Services -- 0.3%
Rogers Communications, Inc. Class B 12,270 508,764
-----------------------------------------------------------------------
Total Common Stocks in Canada 1,074,103
================================================================================
France -- 12.1%
Beverages -- 0.5%
Pernod-Ricard SA 4,080 896,437
-----------------------------------------------------------------------
Commercial Banks -- 3.5%
BNP Paribas SA 21,918 2,659,569
Credit Agricole SA 84,913 3,505,336
------------
6,164,905
-----------------------------------------------------------------------
Electrical Equipment -- 1.6%
Schneider Electric SA 19,501 2,815,245
-----------------------------------------------------------------------
Gas Utilities -- 0.5%
Gaz de France SA 15,850 795,923
-----------------------------------------------------------------------
Insurance -- 1.9%
AXA SA 74,470 3,255,601
-----------------------------------------------------------------------
Multi-Utilities -- 0.6%
Suez SA 16,930 973,853
-----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 2.1%
Total SA 49,190 3,706,508
-----------------------------------------------------------------------
Textiles, Apparel & Luxury
Goods -- 1.4%
LVMH Moet Hennessy Louis Vuitton SA 20,850 2,460,962
-----------------------------------------------------------------------
Total Common Stocks in France 21,069,434
================================================================================
Germany -- 13.7%
Auto Components -- 0.9%
Continental AG 11,284 1,595,906
-----------------------------------------------------------------------
Automobiles -- 1.2%
Bayerische Motoren Werke AG 31,740 2,125,567
-----------------------------------------------------------------------
Chemicals -- 3.5%
Bayer AG 33,640 2,421,189
Linde AG 32,560 3,597,771
------------
6,018,960
-----------------------------------------------------------------------
Commercial Banks -- 0.7%
Deutsche Postbank AG 13,030 1,162,582
-----------------------------------------------------------------------
Electric Utilities -- 2.4%
E.ON AG 25,760 4,234,929
-----------------------------------------------------------------------
Industrial Conglomerates -- 1.7%
Siemens AG 22,670 2,987,526
-----------------------------------------------------------------------
Machinery -- 0.7%
MG Technologies AG (b) 38,860 1,253,346
-----------------------------------------------------------------------
Software -- 1.0%
SAP AG 36,940 1,767,994
-----------------------------------------------------------------------
Textiles, Apparel & Luxury
Goods -- 1.6%
Adidas-Salomon AG 45,120 2,880,142
-----------------------------------------------------------------------
Total Common Stocks in Germany 24,026,952
================================================================================
Greece -- 0.8%
Commercial Banks -- 0.4%
Bank of Cyprus Public Co. Ltd. 42,450 740,258
-----------------------------------------------------------------------
Diversified Telecommunication
Services -- 0.4%
Hellenic Telecommunications
Organization SA (b) 23,780 758,334
-----------------------------------------------------------------------
Total Common Stocks in Greece 1,498,592
================================================================================
Hong Kong -- 1.2%
Commercial Banks -- 0.7%
BOC Hong Kong Holdings Ltd. 546,500 1,300,382
-----------------------------------------------------------------------
Distributors -- 0.5%
Li & Fung Ltd. 269,800 905,271
-----------------------------------------------------------------------
Total Common Stocks in Hong Kong 2,205,653
================================================================================
India -- 1.0%
IT Services -- 0.2%
HCL Technologies Ltd. 49,710 421,442
-----------------------------------------------------------------------
Metals & Mining -- 0.8%
Steel Authority Of India 418,649 1,446,533
-----------------------------------------------------------------------
Total Common Stocks in India 1,867,975
================================================================================
FDP SERIES, INC. MAY 31, 2007 21
Schedule of Investments (continued)
MFS Research International FDP Fund (in U.S. dollars)
Shares
Industry Common Stocks Held Value
================================================================================
Ireland -- 1.1%
Construction Materials -- 1.1%
CRH Plc 40,550 $ 1,969,691
-----------------------------------------------------------------------
Total Common Stocks in Ireland 1,969,691
================================================================================
Israel -- 0.5%
Chemicals -- 0.5%
Makhteshim-Agan Industries Ltd. 130,630 949,920
-----------------------------------------------------------------------
Total Common Stocks in Israel 949,920
================================================================================
Italy -- 4.0%
Aerospace & Defense -- 0.9%
Finmeccanica SpA 50,830 1,599,060
-----------------------------------------------------------------------
Commercial Banks -- 2.7%
UniCredito Italiano SpA 271,860 2,552,197
Unione Di Banche Italiane SPCA 71,594 2,052,864
------------
4,605,061
-----------------------------------------------------------------------
Energy Equipment &
Services -- 0.4%
Saipem SpA 23,500 734,543
-----------------------------------------------------------------------
Total Common Stocks in Italy 6,938,664
================================================================================
Japan -- 15.9%
Auto Components -- 1.7%
Bridgestone Corp. 148,500 2,904,108
-----------------------------------------------------------------------
Automobiles -- 1.4%
Honda Motor Co., Ltd. 69,100 2,430,140
-----------------------------------------------------------------------
Capital Markets -- 1.3%
Nomura Holdings, Inc. 110,500 2,260,846
-----------------------------------------------------------------------
Commercial Banks -- 2.5%
Mitsubishi UFJ Financial Group, Inc. 69 793,755
Sapporo Hokuyo Holdings, Inc. 66 688,743
Shinsei Bank Ltd. 80,000 351,027
Sumitomo Mitsui Financial Group, Inc. 255 2,472,473
------------
4,305,998
-----------------------------------------------------------------------
Consumer Finance -- 0.9%
Aeon Credit Service Co., Ltd. 84,100 1,513,385
-----------------------------------------------------------------------
Electric Utilities -- 0.4%
Tohoku Electric Power Co., Inc. 32,700 757,716
-----------------------------------------------------------------------
Electronic Equipment &
Instruments -- 1.2%
Nippon Electric Glass Co. 52,000 830,205
Omron Corp. 46,700 1,197,239
------------
2,027,444
-----------------------------------------------------------------------
Food & Staples Retailing -- 0.5%
Lawson, Inc. 26,200 934,330
-----------------------------------------------------------------------
Gas Utilities -- 0.4%
Tokyo Gas Co., Ltd. 154,000 759,244
-----------------------------------------------------------------------
Household Durables -- 0.4%
Funai Electric Co., Ltd. 11,000 705,916
-----------------------------------------------------------------------
Household Products -- 1.0%
Kao Corp. 60,000 1,661,463
-----------------------------------------------------------------------
Machinery -- 0.9%
Fanuc Ltd. 15,800 1,508,595
-----------------------------------------------------------------------
Media -- 0.0%
Nippon Television Network Corp. 30 4,223
-----------------------------------------------------------------------
Office Electronics -- 0.6%
Konica Minolta Holdings, Inc. 81,000 1,101,520
-----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 0.3%
Inpex Holdings, Inc. 50 439,606
-----------------------------------------------------------------------
Pharmaceuticals -- 0.7%
Astellas Pharma, Inc. 27,500 1,217,954
-----------------------------------------------------------------------
Specialty Retail -- 0.5%
Fast Retailing Co., Ltd. 10,400 805,850
-----------------------------------------------------------------------
Trading Companies &
Distributors -- 1.2%
Mitsubishi Corp. 62,700 1,527,572
Mitsui & Co., Ltd. 27,000 532,457
------------
2,060,029
-----------------------------------------------------------------------
Total Common Stocks in Japan 27,398,367
================================================================================
Mexico -- 0.8%
Beverages -- 0.1%
Grupo Modelo SA 37,980 209,713
-----------------------------------------------------------------------
Household Products -- 0.2%
Kimberly-Clark de Mexico, SA de CV 73,240 311,182
-----------------------------------------------------------------------
Media -- 0.2%
Grupo Televisa, SA (a) 14,940 429,973
-----------------------------------------------------------------------
Wireless Telecommunication
Services -- 0.3%
America Movil, SA de CV (a) 7,250 438,988
-----------------------------------------------------------------------
Total Common Stocks in Mexico 1,389,856
================================================================================
Netherlands -- 2.6%
Beverages -- 1.2%
Heineken NV 34,630 2,017,625
-----------------------------------------------------------------------
Household Durables -- 1.4%
Koninklijke Philips Electronics NV 59,670 2,537,133
-----------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 0.0%
ASML Holding NV (b) 1,060 27,456
-----------------------------------------------------------------------
Total Common Stocks in the Netherlands 4,582,214
================================================================================
Norway -- 2.0%
Diversified Telecommunication
Services -- 0.8%
Telenor ASA 73,340 1,425,784
-----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 1.2%
Statoil ASA 78,450 2,142,981
-----------------------------------------------------------------------
Total Common Stocks in Norway 3,568,765
================================================================================
Philippines -- 0.5%
Wireless Telecommunication
Services -- 0.5%
Philippine Long Distance Telephone 15,680 865,653
-----------------------------------------------------------------------
Total Common Stocks in the Philippines 865,653
================================================================================
22 FDP SERIES, INC. MAY 31, 2007
Schedule of Investments (continued)
MFS Research International FDP Fund (in U.S. dollars)
Shares
Industry Common Stocks Held Value
================================================================================
Russia -- 0.6%
Metals & Mining -- 0.1%
OAO TMK (a)(b)(c) 5,920 $ 214,600
-----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 0.5%
OAO Gazprom (a) 21,770 794,605
-----------------------------------------------------------------------
Total Common Stocks in Russia 1,009,205
================================================================================
Singapore -- 0.5%
Electronic Equipment &
Instruments -- 0.5%
Venture Corp. Ltd. 84,000 838,140
-----------------------------------------------------------------------
Total Common Stocks in Singapore 838,140
================================================================================
South Africa -- 0.3%
Oil, Gas & Consumable
Fuels -- 0.3%
Sasol Ltd. 15,260 550,946
-----------------------------------------------------------------------
Total Common Stocks in South Africa 550,946
================================================================================
South Korea -- 2.2%
Commercial Banks -- 0.8%
Hana Financial Group, Inc. 26,410 1,337,864
-----------------------------------------------------------------------
Food Products -- 0.3%
Nong Shim Co., Ltd. 1,585 442,461
-----------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 1.1%
Samsung Electronics Co., Ltd. 3,390 1,954,786
-----------------------------------------------------------------------
Total Common Stocks in South Korea 3,735,111
================================================================================
Spain -- 1.5%
Diversified Telecommunication
Services -- 1.0%
Telefonica SA 75,420 1,714,022
-----------------------------------------------------------------------
Media -- 0.5%
Antena 3 de Television SA (b) 36,554 805,163
-----------------------------------------------------------------------
Total Common Stocks in Spain 2,519,185
================================================================================
Switzerland -- 9.5%
Biotechnology -- 0.6%
Actelion Ltd. (b) 5,110 1,117,082
-----------------------------------------------------------------------
Capital Markets -- 2.0%
UBS AG 54,737 3,570,776
-----------------------------------------------------------------------
Chemicals -- 1.0%
Syngenta AG 9,610 1,809,329
-----------------------------------------------------------------------
Commercial Banks -- 0.7%
EFG International AG 26,160 1,285,787
-----------------------------------------------------------------------
Food Products -- 2.2%
Nestle SA Registered Shares 10,084 3,927,227
-----------------------------------------------------------------------
Pharmaceuticals -- 3.0%
Novartis AG Registered Shares 41,870 2,353,649
Roche Holding AG 16,380 3,006,388
------------
5,360,037
-----------------------------------------------------------------------
Total Common Stocks in Switzerland 17,070,238
================================================================================
Taiwan -- 0.0%
Commercial Banks -- 0.0%
SinoPac Financial Holdings Co., Ltd. 101,000 44,021
-----------------------------------------------------------------------
Total Common Stocks in Taiwan 44,021
================================================================================
Thailand -- 0.6%
Construction Materials -- 0.3%
Siam Cement PCL Foreign Shares 66,500 483,272
-----------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.3%
PTT PCL 80,400 584,981
-----------------------------------------------------------------------
Total Common Stocks in Thailand 1,068,253
================================================================================
Turkey -- 0.4%
Commercial Banks -- 0.4%
Turkiye Garanti Bankasi AS 116,720 642,292
-----------------------------------------------------------------------
Total Common Stocks in Turkey 642,292
================================================================================
United Kingdom -- 21.3%
Commercial Banks -- 7.8%
Barclays Plc 203,740 2,912,761
HSBC Holdings Plc 292,080 5,401,820
Royal Bank of Scotland Group Plc 250,214 3,108,972
Standard Chartered Plc 62,040 2,100,677
------------
13,524,230
-----------------------------------------------------------------------
Household Products -- 0.9%
Reckitt Benckiser Plc 29,780 1,619,260
-----------------------------------------------------------------------
Industrial Conglomerates -- 0.5%
Smiths Group Plc 40,150 903,935
-----------------------------------------------------------------------
Media -- 1.9%
WPP Group Plc 223,850 3,311,076
-----------------------------------------------------------------------
Metals & Mining -- 2.3%
BHP Billiton Plc 168,750 4,109,986
-----------------------------------------------------------------------
Multiline Retail -- 0.9%
Next Plc 35,260 1,542,302
-----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 2.8%
BG Group Plc 49,010 749,193
Royal Dutch Shell Plc 111,140 4,141,727
------------
4,890,920
-----------------------------------------------------------------------
Pharmaceuticals -- 1.3%
GlaxoSmithKline Plc 89,780 2,328,854
-----------------------------------------------------------------------
FDP SERIES, INC. MAY 31, 2007 23
Schedule of Investments (concluded)
MFS Research International FDP Fund (in U.S. dollars)
Shares
Industry Common Stocks Held Value
================================================================================
United Kingdom (concluded)
Semiconductors & Semiconductor
Equipment -- 0.7%
ARM Holdings Plc 435,970 $ 1,215,056
-----------------------------------------------------------------------
Trading Companies &
Distributors -- 0.5%
Bunzl Plc 61,200 893,121
-----------------------------------------------------------------------
Wireless Telecommunication
Services -- 1.7%
Vodafone Group Plc 977,580 3,058,446
-----------------------------------------------------------------------
Total Common Stocks in the United Kingdom 37,397,186
Total Common Stocks
(Cost -- $149,350,650) -- 98.9% 173,385,917
================================================================================
Short-Term Face
Industry Securities Amount Value
================================================================================
United States -- 2.1%
Commercial Paper** -- 1.0%
Alpine Securitization Corp., 5.32%
due 6/01/2007 $1,708,000 $ 1,708,000
-----------------------------------------------------------------------
Time Deposits -- 1.1%
Brown Brothers Harriman & Co., 4.62%
due 6/01/2007 1,970,678 1,970,678
-----------------------------------------------------------------------
Total Short-Term Securities in the United States 3,678,678
Total Short-Term Securities
(Cost -- $3,678,678) -- 2.1% 3,678,678
Total Investments
(Cost -- $153,029,328*) -- 101.0% 177,064,595
Liabilities in Excess of Other Assets -- (1.0%) (1,759,118)
------------
Net Assets -- 100.0% $175,305,477
============
* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ................................. $ 153,336,351
=============
Gross unrealized appreciation .................. $ 25,816,372
Gross unrealized depreciation .................. (2,088,128)
-------------
Net unrealized appreciation .................... $ 23,728,244
=============
** Commercial Paper is traded on a discount basis; the interest rates shown
reflect the discount rates paid at the time of purchase.
(a) Depositary receipts.
(b) Non-income producing security.
(c) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
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. Industries are shown as a percent of net assets. These industry
classifications are unaudited.
o Forward foreign exchange contracts purchased as of May 31, 2007 were as
follows:
-----------------------------------------------------------------------
Unrealized
Foreign Currency Settlement Appreciation
Purchased Date (Depreciation)
-----------------------------------------------------------------------
AUD 217,631 June 2007 $ 1,618
CHF 124,295 June 2007 58
EUR 645,052 June 2007 1,497
GBP 321,556 June 2007 1,049
JPY 88,997,047 June 2007 (616)
NOK 146,498 June 2007 159
PHP 2,558,667 June 2007 (216)
SGD 15,846 June 2007 (8)
-----------------------------------------------------------------------
Total Unrealized Appreciation on Forward Foreign
Exchange Contracts -- Net (USD Commitment -- $2,608,112) $3,541
==============
o Currency Abbreviations:
AUD Australian Dollar
CHF Swiss Franc
EUR Euro
GBP British Pound
JPY Japanese Yen
NOK Norwegian Krone
PHP Philippine Peso
SGD Singapore Dollar
USD U.S. Dollar
See Notes to Financial Statements.
24 FDP SERIES, INC. MAY 31, 2007
Schedule of Investments as of May 31, 2007 Marsico Growth FDP Fund
Shares
Held Common Stocks Value
================================================================================
Aerospace & Defense -- 7.1%
30,192 Boeing Co. $ 3,037,013
46,401 General Dynamics Corp. 3,723,216
38,368 Lockheed Martin Corp. 3,763,901
------------
10,524,130
================================================================================
Air Freight & Logistics -- 2.5%
32,931 FedEx Corp. 3,675,758
================================================================================
Automobiles -- 2.4%
29,978 Toyota Motor Corp. (b) 3,620,143
================================================================================
Beverages -- 1.2%
62,912 Heineken NV (b) 1,832,822
================================================================================
Biotechnology -- 5.4%
33,954 Amylin Pharmaceuticals, Inc. (a) 1,570,372
59,468 Genentech, Inc. (a) 4,743,762
25,035 Genzyme Corp. (a) 1,615,258
------------
7,929,392
================================================================================
Capital Markets -- 8.4%
22,140 The Goldman Sachs Group, Inc. 5,110,355
40,198 Lehman Brothers Holdings, Inc. 2,949,729
67,792 UBS AG 4,422,750
------------
12,482,834
================================================================================
Chemicals -- 4.2%
55,729 Monsanto Co. 3,432,906
41,693 Praxair, Inc. 2,838,876
------------
6,271,782
================================================================================
Commercial Banks -- 3.7%
107,000 China Merchants Bank Co. Ltd. 276,118
4,551,000 Industrial & Commercial Bank of China 2,383,775
78,734 Wells Fargo & Co. 2,841,510
------------
5,501,403
================================================================================
Communications Equipment -- 2.3%
125,616 Cisco Systems, Inc. (a) 3,381,583
================================================================================
Computers & Peripherals -- 1.9%
22,858 Apple Computer, Inc. (a) 2,778,618
================================================================================
Diversified Financial Services -- 0.9%
19,294 Moody's Corp. 1,343,827
================================================================================
Diversified Telecommunication Services -- 2.0%
71,838 AT&T Inc. 2,969,783
================================================================================
Energy Equipment & Services -- 3.8%
10,517 Cameron International Corp. (a) 745,655
62,784 Schlumberger Ltd. 4,888,990
------------
5,634,645
================================================================================
Food & Staples Retailing -- 1.5%
56,498 CVS Corp./Caremark Corp. 2,177,433
================================================================================
Food Products -- 1.1%
49,833 Kraft Foods, Inc. 1,686,349
================================================================================
Health Care Providers & Services -- 6.0%
162,983 UnitedHealth Group, Inc. 8,926,579
================================================================================
Hotels, Restaurants & Leisure -- 11.8%
54,488 Las Vegas Sands Corp. (a) 4,251,154
47,180 MGM Mirage (a) 3,752,225
83,029 McDonald's Corp. 4,197,116
48,149 Starbucks Corp. (a) 1,387,173
7,447 Station Casinos, Inc. 654,219
4,537 Wynn Resorts Ltd. 438,002
40,612 Yum! Brands, Inc. 2,750,245
------------
17,430,134
================================================================================
Household Products -- 1.9%
45,118 The Procter & Gamble Co. 2,867,249
================================================================================
IT Services -- 2.3%
22,294 MasterCard, Inc. Class A 3,334,068
================================================================================
Internet Software & Services -- 1.3%
3,910 Google, Inc. Class A (a) 1,946,203
================================================================================
Media -- 3.0%
161,148 Comcast Corp. Class A (a) 4,417,067
================================================================================
Metals & Mining -- 1.6%
29,453 Freeport-McMoRan Copper & Gold, Inc. Class B 2,317,951
================================================================================
Multiline Retail -- 0.6%
21,832 Federated Department Stores, Inc. (a) 871,752
================================================================================
Pharmaceuticals -- 1.9%
86,489 Schering-Plough Corp. 2,831,650
================================================================================
Real Estate Management & Development -- 2.1%
57,524 CB Richard Ellis Group, Inc. (a) 2,141,043
17,544 The St. Joe Co. 918,253
------------
3,059,296
================================================================================
Road & Rail -- 4.8%
45,257 Burlington Northern Santa Fe Corp. 4,214,784
23,692 Union Pacific Corp. 2,859,151
------------
7,073,935
================================================================================
Semiconductors & Semiconductor Equipment -- 1.9%
130,434 Intel Corp. 2,891,722
================================================================================
Specialty Retail -- 2.1%
92,727 Lowe's Cos., Inc. 3,043,300
================================================================================
Wireless Telecommunication Services -- 4.2%
54,268 America Movil, SA de CV (b) 3,285,927
311,500 China Mobile Ltd. 2,912,166
------------
6,198,093
- --------------------------------------------------------------------------------
Total Common Stocks
(Cost -- $120,016,091) -- 93.9% 139,019,501
================================================================================
FDP SERIES, INC. MAY 31, 2007 25
Schedule of Investments (concluded) Marsico Growth FDP Fund
Face
Amount Short-Term Securities Value
================================================================================
Time Deposits -- 5.8%
$8,639,473 Brown Brothers Harriman & Co.,
4.62% due 6/01/2007 $ 8,639,473
- --------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $8,639,473) -- 5.8% 8,639,473
================================================================================
Total Investments (Cost -- $128,655,564*) -- 99.7% 147,658,974
Other Assets Less Liabilities -- 0.3% 405,902
------------
Net Assets -- 100.0% $148,064,876
============
- --------------------------------------------------------------------------------
* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ........................................... $128,713,018
============
Gross unrealized appreciation ............................ $ 19,389,300
Gross unrealized depreciation ............................ (443,344)
------------
Net unrealized appreciation .............................. $ 18,945,956
============
(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 sector and industry sub-classifications for
reporting ease. Industries are shown as a percent of net assets. These
industry classifications are unaudited.
See Notes to Financial Statements.
26 FDP SERIES, INC. MAY 31, 2007
Schedule of Investments as of May 31, 2007
Van Kampen Value FDP Fund (in U.S. dollars)
Shares
Held Common Stocks Value
================================================================================
Airlines -- 0.6%
61,600 Southwest Airlines Co. $ 881,496
================================================================================
Beverages -- 4.0%
91,500 The Coca-Cola Co. 1,146,810
91,500 The Coca-Cola Co. 4,848,585
------------
5,995,395
================================================================================
Capital Markets -- 1.5%
54,800 The Bank of New York Co., Inc. 2,222,688
================================================================================
Chemicals -- 2.9%
64,900 E.I. du Pont de Nemours & Co. 3,395,568
18,900 Rohm & Haas Co. 1,001,889
------------
4,397,457
================================================================================
Commercial Banks -- 4.3%
4,400 Barclays Plc (b) 251,812
500 PNC Financial Services Group, Inc. (c) 36,900
21,000 U.S. Bancorp 726,180
66,200 Wachovia Corp. 3,587,378
52,500 Wells Fargo & Co. 1,894,725
------------
6,496,995
================================================================================
Communications Equipment -- 0.5%
13,200 Cisco Systems, Inc. (a) 355,344
12,100 Telefonaktiebolaget LM Ericsson (b) 459,558
------------
814,902
================================================================================
Computers & Peripherals -- 3.2%
74,500 Dell, Inc. (a) 2,001,815
15,600 Hewlett-Packard Co. 713,076
20,100 International Business Machines Corp. 2,142,660
------------
4,857,551
================================================================================
Diversified Financial Services -- 8.5%
86,100 Bank of America Corp. 4,366,131
110,800 Citigroup, Inc. 6,037,492
43,800 JPMorgan Chase & Co. 2,270,154
------------
12,673,777
================================================================================
Diversified Telecommunication Services -- 4.2%
53,600 AT&T Inc. 2,215,824
92,500 Verizon Communications, Inc. 4,026,525
------------
6,242,349
================================================================================
Food & Staples Retailing -- 3.8%
54,000 CVS Corp./Caremark Corp. 2,081,160
77,200 Wal-Mart Stores, Inc. 3,674,720
------------
5,755,880
================================================================================
Food Products -- 5.5%
48,600 Cadbury Schweppes Plc (b) 2,739,096
81,585 Kraft Foods, Inc. 2,760,837
91,100 Unilever NV (b) 2,714,780
------------
8,214,713
================================================================================
Health Care Equipment & Supplies -- 0.6%
56,000 Boston Scientific Corp. (a) 877,520
================================================================================
Health Care Providers & Services -- 1.6%
33,100 Cardinal Health, Inc. 2,398,426
================================================================================
Household Products -- 2.2%
35,400 Kimberly-Clark Corp. 2,511,984
12,900 The Procter & Gamble Co. 819,795
------------
3,331,779
================================================================================
IT Services -- 0.7%
14,900 First Data Corp. 487,230
23,100 The Western Union Co. 518,595
------------
1,005,825
================================================================================
Industrial Conglomerates -- 1.2%
46,500 General Electric Co. 1,747,470
================================================================================
Insurance -- 5.9%
17,200 Aflac, Inc. 909,192
23,900 American International Group, Inc. 1,728,925
53,200 Chubb Corp. 2,919,084
12,800 Genworth Financial, Inc. Class A 462,080
6,100 Hartford Financial Services Croup, Inc 629,337
17,400 MetLife, Inc. 1,183,200
17,200 The Travelers Cos., Inc. 931,724
------------
8,763,542
================================================================================
Internet & Catalog Retail -- 1.2%
76,550 Liberty Media Holding Corp. -- Interactive (a) 1,854,807
================================================================================
Media -- 10.1%
19,999 Clear Channel Communications, Inc. 767,962
134,500 Comcast Corp. Class A (a) 3,686,645
10,600 Gannett Co., Inc. 623,492
15,490 Liberty Media Holding Corp. -- Capital (a) 1,748,821
57,300 News Corp. Class B 1,353,999
150,600 Time Warner, Inc. 3,218,322
81,550 Viacom, Inc. Class B (a) 3,663,226
------------
15,062,467
================================================================================
Metals & Mining -- 1.7%
63,135 Alcoa, Inc. 2,606,213
================================================================================
Paper & Forest Products -- 3.0%
114,500 International Paper Co. 4,484,965
================================================================================
Pharmaceuticals -- 16.7%
38,900 Abbott Laboratories 2,192,015
146,400 Bristol-Myers Squibb Co. 4,437,384
58,100 Eli Lilly & Co. 3,405,822
41,900 GlaxoSmithKline Plc (b) 2,186,342
106,900 Pfizer, Inc. 2,938,681
22,600 Roche Holding AG (b) 2,072,904
20,500 Sanofi-Aventis (b) 986,050
80,600 Schering-Plough Corp. 2,638,844
72,400 Wyeth 4,187,616
------------
25,045,658
================================================================================
Semiconductors & Semiconductor Equipment -- 1.6%
52,200 Intel Corp. 1,157,274
7,500 KLA-Tencor Corp. 412,350
22,800 Texas Instruments, Inc. 806,208
------------
2,375,832
================================================================================
Software -- 1.1%
14,200 McAfee, Inc. (a) 521,992
34,800 Microsoft Corp. 1,067,316
------------
1,589,308
================================================================================
Specialty Retail -- 0.8%
13,700 Home Depot, Inc. 532,519
20,100 Lowe's Cos., Inc. 659,682
------------
1,192,201
================================================================================
FDP SERIES, INC. MAY 31, 2007 27
Schedule of Investments (concluded)
Van Kampen Value FDP Fund (in U.S. dollars)
Shares
Held Common Stocks Value
================================================================================
Thrifts & Mortgage Finance -- 2.6%
20,100 Fannie Mae $ 1,284,792
37,800 Freddie Mac 2,524,662
------------
3,809,454
================================================================================
Tobacco -- 1.3%
27,400 Altria Group, Inc. 1,948,140
- --------------------------------------------------------------------------------
Total Common Stocks
(Cost -- $116,961,292) -- 91.3% 136,646,810
================================================================================
Face
Amount Short-Term Securities Value
================================================================================
Time Deposits -- 0.1%
$ 58,801 Brown Brothers Harriman & Co., 4.62%
due 6/01/2007 $ 58,801
- --------------------------------------------------------------------------------
U.S. Government Agency Obligations** -- 8.0%
$12,000,000 Federal Home Loan Bank, 5.08%
due 6/01/2007 12,000,000
- --------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $12,058,801) -- 0.1% 12,058,801
================================================================================
Total Investments (Cost -- $129,020,093*) -- 99.4% 148,705,611
Other Assets Less Liabilities --0.6% 940,727
------------
Net Assets -- 100.0% $149,646,338
============
* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2007 as computed for federal income tax purposes, were as follows:
Aggregate cost ................................................. $129,161,533
============
Gross unrealized appreciation .................................. $ 19,818,114
Gross unrealized depreciation .................................. (274,036)
------------
Net unrealized appreciation .................................... $ 19,544,078
============
** U.S. Government Agency Obligations are traded on a discount basis; the
interest rate shown reflects the discount rate paid at the time of
purchase.
(a) Non-income producing security.
(b) Depositary receipts.
(c) 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
- --------------------------------------------------------------------------------------------
PNC Financial Services Group, Inc. -- -- -- $1,140
- --------------------------------------------------------------------------------------------
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. Industry classifications are shown as a percent of the net assets.
These industry classifications are unaudited.
See Notes to Financial Statements.
28 FDP SERIES, INC. MAY 31, 2007
Schedule of Investments as of May 31, 2007
Franklin Templeton Total Return FDP Fund (in U.S. dollars)
Face
Amount Asset-Backed Securities** Value
================================================================================
USD 231,582 ACE Securities Corp. Series 2005-HE5
Class A2A, 5.44% due 8/25/2035 (a) $ 231,593
1,845,590 Asset Backed Funding Certificates Series
2005-HE2 Class A2C, 5.62%
due 6/25/2035 (a) 1,847,145
495,903 Asset Backed Securities Corp. Home Equity
Line Trust Series 2205-HE4 Class A1, 5.48%
due 5/25/2035 (a) 496,013
1,845,229 Asset Backed Securities Corp. Home Equity
Series 2006-HE2 Class A2, 5.39%
due 3/25/2036 (a) 1,845,425
604,570 Chase Funding Mortgage Loan Asset-Backed
Series 2004-2 Class 2A2, 5.57%
due 2/25/2034 (a) 605,231
680,000 CitiFinancial Mortgage Securities, Inc.
Series 2003-4 Class AF6, 4.493%
due 10/25/2033 (a) 644,348
1,819,946 Citigroup Mortgage Loan Trust, Inc.
Series 2006-WFH1 Class A1A, 5.39%
due 1/25/2036 (a) 1,820,150
700,000 Countrywide Asset Backed Certificates
Series 2005-11 Class AF4, 5.21%
due 9/25/2035 (a) 679,854
First Franklin Mortgage Loan Asset
Backed Certificates (a):
3,250,000 Series 2005-FF8 Class A2B, 5.50%
due 9/25/2035 3,250,704
170,536 Series 2005-FF10 Class A2, 5.42%
due 11/25/2035 170,554
1,100,000 HSI Asset Securitization Corp. Trust
Series 2006-OPT4 Class 2A2, 5.43%
due 3/25/2036 (a) 1,099,996
Master Asset Backed Securities Trust (a):
804,339 Series 2005-WMC1 Class A4, 5.51%
due 3/25/2035 804,435
405,912 Series 2006-AB1 Class A1, 5.46%
due 2/25/2036 405,935
Morgan Stanley ABS Capital I (a):
921,185 Series 2006-HE4 Class A1, 5.36%
due 6/25/2036 921,182
1,900,000 Series 2006-NC3 Class A2B, 5.44%
due 3/25/2036 1,898,940
722,835 Series 2006-NC4 Class A2A, 5.35%
due 6/25/2036 722,585
540,505 Ownit Mortgage Loan Asset-Backed
Certificates Series 2005-2 Class A2B,
5.52% due 3/25/2036 (a) 540,580
58,357 Popular ABS Mortgage Pass-Through Trust
Series 2004-4 Class AF1, 5.57%
due 9/25/2034 (a) 58,371
1,000,000 Residential Asset Securities Corp.
Series 2005-AHL2 Class A2, 5.58%
due 10/25/2035 (a) 1,000,802
Securitized Asset Backed Receivables LLC
Trust (a):
727,318 Series 2006-FR1 Class A2A, 5.39%
due 11/25/2035 727,445
1,400,000 Series 2006-FR2 Class A2, 5.47%
due 3/25/2036 1,399,830
Structured Asset Investment Loan Trust (a):
841,517 Series 2005-5 Class A7, 5.53%
due 6/25/2035 841,661
517,771 Series 2005-HE2 Class A1, 5.44%
due 7/25/2035 517,783
788,634 Structured Asset Securities Corp.
Series 2005-SC1 Class 1A1, 5.59%
due 5/25/2031 (a)(c) 789,652
- --------------------------------------------------------------------------------
Total Asset-Backed Securities
(Cost -- $23,368,043) -- 13.3% 23,320,214
================================================================================
================================================================================
Corporate Bonds
================================================================================
Aerospace & Defense -- 0.1%
L-3 Communications Corp.:
50,000 5.875% due 1/15/2015 48,750
75,000 6.375% due 10/15/2015 74,812
------------
123,562
================================================================================
Beverages -- 0.3%
600,000 SABMiller Plc, 6.50% due 7/01/2016 (c) 621,568
================================================================================
Biotechnology -- 0.4%
300,000 Amgen, Inc., 0.375% due 2/01/2013 (b) 270,000
300,000 PDL BioPharma, Inc., 2.75%
due 8/16/2023 (b) 426,000
------------
696,000
================================================================================
Capital Markets -- 0.3%
100,000 The Bear Stearns Cos., Inc. Series B, 4.55%
due 6/23/2010 97,619
100,000 Lazard Group, 7.125% due 5/15/2015 104,016
300,000 Morgan Stanley, 4.75% due 4/01/2014 282,368
------------
484,003
================================================================================
Chemicals -- 0.5%
150,000 Huntsman International LLC, 7.875%
due 11/15/2014 (c) 157,687
100,000 Ineos Group Holdings Plc, 8.50%
due 2/15/2016 (c) 100,625
200,000 Lyondell Chemical Co., 8% due 9/15/2014 211,500
50,000 RPM International, Inc., 6.25%
due 12/15/2013 50,649
200,000 RPM United Kingdom G.P., 6.70%
due 11/01/2015 202,414
250,000 Yara International ASA, 5.25%
due 12/15/2014 (c) 238,305
------------
961,180
================================================================================
Commercial Banks -- 2.0%
800,000 BNP Paribas, 5.186% due 6/29/2049 (a)(c) 757,234
European Investment Bank:
JPY 26,000,000 2.125% due 9/20/2007 214,554
60,000,000 0.333% due 9/21/2011 (a) 492,911
USD 400,000 Glitnir Banki HF, 7.451% due 9/14/2049 (a)(c) 424,135
400,000 Kaupthing Bank hf, 7.125% due 5/19/2016 (c) 425,345
Kreditanstalt fuer Wiederaufbau:
13,000,000 8.25% due 9/20/2007 206,721
JPY 64,000,000 0.325% due 8/08/2011 (a) 525,984
USD 400,000 Landsbanki Islands hf, 6.10%
due 8/25/2011 (c) 406,952
------------
3,453,836
================================================================================
FDP SERIES, INC. MAY 31, 2007 29
Schedule of Investments (continued)
Franklin Templeton Total Return FDP Fund (in U.S. dollars)
Face
Amount Corporate Bonds Value
================================================================================
Commercial Services & Supplies -- 0.1%
USD 150,000 Aramark Corp., 8.50% due 2/01/2015 (c) $ 157,687
50,000 Waste Management, Inc., 6.50%
due 11/15/2008 50,601
------------
208,288
================================================================================
Construction Materials -- 0.1%
300,000 Headwaters, Inc., 2.875% due 6/01/2016 (b) 277,875
================================================================================
Containers & Packaging -- 0.1%
125,000 Owens-Brockway Glass Container, Inc.,
6.75% due 12/01/2014 126,250
================================================================================
Diversified Financial Services -- 0.6%
500,000 GMAC, LLC, 6.875% due 9/15/2011 503,771
General Electric Capital Corp.:
72,000 5.62% due 10/21/2010 (a) 72,082
500,000 5% due 1/08/2016 481,286
------------
1,057,139
================================================================================
Diversified Telecommunication Services -- 1.3%
300,000 AT&T, Inc., 5.612% due 11/14/2008 (a) 300,906
500,000 Embarq Corp., 7.082% due 6/01/2016 509,294
Telecom Italia Capital SA:
250,000 4.95% due 9/30/2014 234,583
250,000 7.20% due 7/18/2036 262,089
Verizon New York, Inc.:
800,000 Series A, 6.875% due 4/01/2012 833,629
100,000 Series B, 7.375% due 4/01/2032 104,675
------------
2,245,176
================================================================================
Electronic Equipment & Instruments -- 0.1%
150,000 NXP BV, 7.875% due 10/15/2014 (c) 154,500
================================================================================
Energy Equipment & Services -- 0.1%
100,000 Compagnie Generale de Geophysique-Veritas,
7.75% due 5/15/2017 105,500
================================================================================
Food & Staples Retailing -- 0.2%
300,000 CVS Caremark Corp., 5.75% due 6/01/2017 295,963
================================================================================
Food Products -- 0.4%
Bunge Ltd. Finance Corp.:
300,000 5.875% due 5/15/2013 295,613
400,000 5.10% due 7/15/2015 372,588
------------
668,201
================================================================================
Health Care Providers & Services -- 0.2%
150,000 DaVita, Inc., 7.25% due 3/15/2015 153,750
Tenet Healthcare Corp.:
25,000 6.375% due 12/01/2011 23,531
125,000 9.875% due 7/01/2014 128,125
------------
305,406
================================================================================
Hotels, Restaurants & Leisure -- 0.3%
138,000 Carnival Corp., 2% due 4/15/2021 (b) 179,745
200,000 Harrah's Operating Co., Inc., 6.50%
due 6/01/2016 176,750
150,000 MGM Mirage, 6.625% due 7/15/2015 142,312
Station Casinos, Inc.:
25,000 6.875% due 3/01/2016 23,063
100,000 7.75% due 8/15/2016 103,250
------------
625,120
================================================================================
Household Durables -- 0.7%
USD 25,000 Beazer Homes USA, Inc., 8.125%
due 6/15/2016 25,625
Ford Motor Credit Co.:
100,000 5.625% due 10/01/2008 98,632
350,000 7.875% due 6/15/2010 353,375
350,000 9.875% due 8/10/2011 374,922
200,000 Jarden Corp., 7.50% due 5/01/2017 204,000
KB Home:
50,000 6.25% due 6/15/2015 47,437
100,000 7.25% due 6/15/2018 98,125
------------
1,202,116
================================================================================
IT Services -- 0.1%
SunGard Data Systems, Inc.:
50,000 9.125% due 8/15/2013 53,125
75,000 10.25% due 8/15/2015 82,031
------------
135,156
================================================================================
Independent Power Producers & Energy Traders -- 0.2%
NRG Energy, Inc.:
175,000 7.25% due 2/01/2014 179,812
25,000 7.375% due 2/01/2016 25,937
100,000 TXU Corp., 5.55% due 11/15/2014 88,752
------------
294,501
================================================================================
Industrial Conglomerates -- 0.0%
50,000 Hutchison Whampoa International (03/33) Ltd.,
7.45% due 11/24/2033 (c) 56,618
================================================================================
Insurance -- 0.3%
600,000 MetLife, Inc., 6.40% due 12/15/2066 574,360
================================================================================
Machinery -- 0.1%
125,000 Commercial Vehicle Group, Inc., 8%
due 7/01/2013 125,000
125,000 RBS Global, Inc., 9.50% due 8/01/2014 134,375
------------
259,375
================================================================================
Media -- 1.1%
25,000 CCH I, LLC, 11% due 10/01/2015 27,188
125,000 Charter Communications Holdings II LLC,
10.25% due 9/15/2010 133,125
300,000 Comcast Corp., 6.50% due 11/15/2035 296,725
25,000 Dex Media West LLC, 9.875% due 8/15/2013 27,156
50,000 Intelsat Intermediate Holding Co. Ltd.,
8.248% due 2/01/2015 (d) 42,000
125,000 Intelsat Subsidiary Holding Co. Ltd., 8.25%
due 1/15/2013 129,844
400,000 News America, Inc., 7.25% due 5/18/2018 437,347
125,000 RH Donnelley Corp. Series A-3, 8.875%
due 1/15/2016 134,687
300,000 Time Warner, Inc., 5.875% due 11/15/2016 296,421
350,000 Viacom, Inc., 6.25% due 4/30/2016 349,454
------------
1,873,947
================================================================================
Metals & Mining -- 0.1%
125,000 Novelis, Inc., 7.25% due 2/15/2015 131,875
================================================================================
30 FDP SERIES, INC. MAY 31, 2007
Schedule of Investments (continued)
Franklin Templeton Total Return FDP Fund (in U.S. dollars)
Face
Amount Corporate Bonds Value
================================================================================
Multi-Utilities -- 0.3%
USD 75,000 CenterPoint Energy, Inc., 7.25%
due 9/01/2010 $ 78,558
300,000 Dominion Resources, Inc. Series C, 5.15%
due 7/15/2015 288,781
200,000 PSEG Funding Trust, 5.381%
due 11/16/2007 199,633
------------
566,972
================================================================================
Oil, Gas & Consumable Fuels -- 1.4%
Chesapeake Energy Corp.:
250,000 6.625% due 1/15/2016 253,437
50,000 6.25% due 1/15/2018 49,625
1,000,000 Gaz Capital for Gazprom, 6.212%
due 11/22/2016 (c) 1,000,000
500,000 Lukoil International Finance B.V., 6.356%
due 6/07/2017 (c) 500,000
100,000 Petroplus Finance Ltd., 6.75%
due 5/01/2014 (c) 100,125
Williams Cos. Inc.:
100,000 7.625% due 7/15/2019 109,750
100,000 8.75% due 3/15/2032 119,000
350,000 XTO Energy, Inc., 6.10% due 4/01/2036 335,782
------------
2,467,719
================================================================================
Paper & Forest Products -- 0.1%
100,000 Weyerhaeuser Co., 7.375% due 3/15/2032 103,671
================================================================================
Pharmaceuticals -- 0.3%
500,000 Wyeth, 5.95% due 4/01/2037 484,363
================================================================================
Real Estate Investment Trusts (REITs) -- 1.0%
500,000 Colonial Realty LP, 5.50% due 10/01/2015 484,917
500,000 ERP Operating LP, 5.75% due 6/15/2017 496,055
75,000 Host Hotels & Resorts LP, 6.875%
due 11/01/2014 76,500
50,000 Host Marriott LP, 7.125% due 11/01/2013 51,250
50,000 iStar Financial, Inc., 6% due 12/15/2010 50,295
650,000 WEA Finance LLC, 5.70% due 10/01/2016 (c) 645,217
------------
1,804,234
================================================================================
Semiconductors & Semiconductor Equipment -- 0.2%
200,000 Freescale Semiconductor, Inc., 8.875%
due 12/15/2014 (c) 200,250
186,000 Intel Corp., 2.95% due 12/15/2035 (b) 171,818
------------
372,068
================================================================================
Thrifts & Mortgage Finance -- 0.6%
300,000 Capmark Financial Group, Inc., 6.30%
due 5/10/2017 (c) 298,105
800,000 Residential Capital LLC, 6.50%
due 6/01/2012 795,608
------------
1,093,713
================================================================================
Tobacco -- 0.1%
125,000 Reynolds American, Inc., 7.625%
due 6/01/2016 135,414
- --------------------------------------------------------------------------------
Total Corporate Bonds
(Cost -- $23,820,213) -- 13.7% 23,965,669
================================================================================
Face
Amount Foreign Government Obligations Value
================================================================================
Bank Negara Malaysia Monetary Notes:
MYR 50,000 0% due 11/01/2007 (d) $ 14,500
200,000 0% due 12/06/2007 (d) 57,803
295,000 0% due 12/13/2007 (d) 85,203
715,000 0% due 12/21/2007 (d) 206,350
1,400,000 3.569% due 2/14/2008 412,358
3,275,000 3.17% due 5/15/2008 961,733
190,000 Series 0107, 3.546% due 1/11/2008 55,924
710,000 Series 0607, 0% due 2/28/2008 (d) 203,708
BRL 3,100,000 Brazil Notas do Tesouro Nacional Series F,
10% due 1/01/2017 1,614,155
IDR 252,000,000 Indonesia Government Bond Series FR37,
12% due 9/15/2026 34,236
600,000,000 Indonesia Recapitalization Bond, 14.25%
due 6/15/2013 85,864
Indonesia Treasury Bond:
4,310,000,000 12.80% due 6/15/2021 615,910
4,900,000,000 12.90% due 6/15/2022 705,440
2,100,000,000 Series FR31, 11% due 11/15/2020 267,835
650,000,000 Series FR32, 15% due 7/15/2018 104,102
1,600,000,000 Series FR36, 11.50% due 9/15/2019 210,264
4,120,000,000 Series FR40, 11% due 9/15/2025 519,959
KRW 1,025,000,000 Korea Treasury Bond, 4.25% due 9/10/2008 1,092,477
Malaysia Government Bond:
MYR 2,265,000 3.135% due 12/17/2007 665,633
40,000 Series 1/89, 7% due 3/15/2009 12,499
1,150,000 Series 2/88, 6.45% due 7/01/2008 349,315
1,810,000 Series 386X, 8.60% due 12/01/2007 546,297
PEN 615,000 Peru Government Bond, 7.84%
due 8/12/2020 228,722
Poland Government Bond:
PLN 3,900,000 Series 0509, 6% due 5/24/2009 1,408,648
1,200,000 Series WS0922, 5.75% due 9/23/2022 440,158
USD 270,000 Republic of Argentina, 5.59% due 8/03/2012 260,463
400,000 Republic of Iraq, 5.80% due 1/15/2028 254,000
SGD 435,000 Singapore Government Bond, 2.625%
due 10/01/2007 284,900
Sweden Government Bond:
SEK 4,795,000 8% due 8/15/2007 698,800
12,250,000 Series 1040, 6.50% due 5/05/2008 1,813,582
- --------------------------------------------------------------------------------
Total Foreign Government Obligations
(Cost -- $13,222,606) -- 8.1% 14,210,838
================================================================================
Government & Agency Obligations
================================================================================
Fannie Mae:
USD 1,600,000 6.625% due 9/15/2009 1,649,896
1,000,000 7.25% due 1/15/2010 1,050,751
900,000 6.25% due 5/15/2029 994,016
700,000 6.625% due 11/15/2030 808,136
Federal Home Loan Bank System:
500,000 3.875% due 8/22/2008 491,620
4,000,000 4.875% due 11/18/2011 3,952,780
1,500,000 4.50% due 9/16/2013 1,441,596
FDP SERIES, INC. MAY 31, 2007 31
Schedule of Investments (continued)
Franklin Templeton Total Return FDP Fund (in U.S. dollars)
Face
Amount Government & Agency Obligations Value
================================================================================
Freddie Mac:
USD 700,000 4.375% due 11/16/2007 $ 697,206
500,000 4.625% due 2/21/2008 497,532
3,000,000 5.125% due 4/18/2008 2,994,849
4,000,000 4.875% due 2/17/2009 3,975,256
1,500,000 6.625% due 9/15/2009 1,546,836
1,500,000 4% due 12/15/2009 1,459,754
500,000 6% due 6/15/2011 514,918
2,000,000 6.75% due 3/15/2031 2,347,064
30,000 6.25% due 7/15/2032 33,349
U.S. Treasury Bonds:
2,250,000 6.25% due 8/15/2023 2,530,724
2,000,000 6.75% due 8/15/2026 2,398,750
150,000 6.125% due 11/15/2027 169,523
500,000 5.50% due 8/15/2028 526,172
250,000 6.25% due 5/15/2030 289,805
U.S. Treasury Inflation Indexed Bonds:
541,825 0.875% due 4/15/2010 516,342
517,145 2.375% due 4/15/2011 514,196
1,255,958 3% due 7/15/2012 1,287,553
1,306,920 2% due 7/15/2014 1,265,262
1,055,430 1.875% due 7/15/2015 1,007,358
508,270 2.50% due 7/15/2016 508,151
1,730,583 2.375% due 1/15/2017 1,708,681
U.S. Treasury Notes:
200,000 3.875% due 7/31/2007 199,656
250,000 3.75% due 5/15/2008 246,992
1,000,000 4.125% due 8/15/2008 989,453
500,000 3.50% due 2/15/2010 482,696
1,000,000 4.25% due 10/15/2010 981,719
500,000 6% due 2/15/2026 553,438
- --------------------------------------------------------------------------------
Total Government & Agency Obligations
(Cost -- $41,104,842) -- 23.2% 40,632,030
================================================================================
Government Agency
Mortgage-Backed Securities**
================================================================================
Fannie Mae Guaranteed Pass
Through Certificates:
253,374 3.993% due 4/01/2035 (a) 253,988
42,658 4.445% due 5/01/2033 (a) 42,857
1,150,000 4.50% due 6/15/2022 (e) 1,100,046
1,096,818 4.941% due 4/01/2035 (a) 1,097,394
4,325,000 5.00% due 6/15/2018 (e) 4,215,526
8,456,565 5.00% due 7/01/2035 - 6/15/2037 (e) 8,052,208
20,493,642 5.50% due 11/01/2034 - 6/15/2037 (e) 20,022,675
985,035 5.626% due 9/01/2034 (a) 989,354
14,297,724 6.00% due 10/01/2034 - 6/15/2037 (e) 14,283,659
3,897,108 6.50% due 1/01/2036 - 6/15/2037 (e) 3,958,951
317,132 6.735% due 10/01/2032 (a) 318,859
2,139,741 Fannie Mae Trust Series 2007-1 Class NF,
5.57% due 2/25/2037 (a) 2,139,577
Freddie Mac Mortgage
Participation Certificates:
332,038 4.50% due 9/01/2020 317,869
237,364 4.701% due 9/01/2032 (a) 238,622
2,971,000 5.00% due 6/15/2037 (e) 2,827,091
582,038 5.49% due 11/01/2027 (a) 592,458
202,773 7.406% due 4/01/2032 (a) 204,900
Freddie Mac Multiclass Certificates:
1,000,000 Series 2643 Class OG 5.00%
due 7/15/2032 934,019
870,091 Series 2942 Class TF 5.67%
due 3/15/2035 (a) 870,459
- --------------------------------------------------------------------------------
Total Government Agency
Mortgage-Backed Securities
(Cost -- $62,870,119) -- 35.7% 62,460,512
================================================================================
Non-Government Agency
Mortgage-Backed Securities**
================================================================================
Commercial Mortgage-Backed Securities -- 10.9%
2,000,000 Bear Stearns Commercial Mortgage
Securities Series 2005-PW10 Class A4,
5.405% due 12/11/2040 (a) 1,971,124
Citigroup/Deutsche Bank Commercial
Mortgage Trust:
2,300,000 Series 2005-C1 Class A4, 5.225%
due 7/15/2044 (a) 2,254,198
2,500,000 Series 2006-CD3 Class A5, 5.617%
due 10/15/2048 2,491,043
2,750,000 Series 2007-CD4 Class C, 5.476%
due 12/11/2049 (a) 2,694,142
2,519,000 GS Mortgage Securities Corp. II
Series 2006-GG6 Class A4, 5.553%
due 4/10/2038 (a) 2,504,292
Greenwich Capital Commercial Funding Corp. (a):
900,000 Series 2004-GG1 Class A7, 5.317%
due 6/10/2036 887,493
3,800,000 Series 2006-GG7 Class A4, 6.11%
due 7/10/2038 3,888,610
1,600,000 Series 2007-GG9 Class C, 5.554%
due 2/10/2017 1,559,028
850,000 LB-UBS Commercial Mortgage Trust
Series 2006-C3 Class A4, 5.661%
due 3/15/2039 (a) 851,085
- --------------------------------------------------------------------------------
Total Non-Government Agency
Mortgage-Backed Securities
(Cost -- $19,472,030) -- 10.9% 19,101,015
================================================================================
Preferred Securities
Industry Capital Trusts
================================================================================
Commercial Banks -- 0.6%
600,000 Fifth Third Capital Trust IV, 6.50%
due 4/15/2067 (a) 590,868
350,000 USB Capital IX, 6.189% due 4/15/2049 (a) 354,915
250,000 Wachovia Capital Trust III, 5.80%
due 8/29/2049 (a) 250,318
------------
1,196,101
================================================================================
Diversified Financial Services -- 0.4%
700,000 JPMorgan Chase Capital XXII, 6.45%
due 2/02/2037 680,527
- --------------------------------------------------------------------------------
Total Capital Trusts
(Cost -- $1,898,017) -- 1.0% 1,876,628
================================================================================
32 FDP SERIES, INC. MAY 31, 2007
Schedule of Investments (concluded)
Franklin Templeton Total Return FDP Fund (in U.S. dollars)
Preferred Securities (concluded)
Shares
Held Preferred Stocks Value
===============================================================================
Automobiles -- 0.2%
General Motors Corp.:
6,500 Series C, 6.25% $ 150,280
6,800 Series D, 1.50% 169,660
- -------------------------------------------------------------------------------
Total Preferred Stocks
(Cost -- $319,559) -- 0.2% 319,940
===============================================================================
Total Preferred Securities
(Cost -- $2,217,576) -- 1.2% 2,196,568
===============================================================================
Face
Amount Short-Term Securities
===============================================================================
Foreign Government Obligations -- 1.5%
EGP 1,750,000 Egypt Treasury Bill, 9.85% due 9/18/2007 (d) 301,187
THB 10,375,000 Kingdom of Thailand Series 364, 4.50%
due 1/10/2008 (d) 293,839
Norway Treasury Bill (d):
NOK 2,350,000 3.778% due 9/19/2007 384,578
1,540,000 4.132% due 12/19/2007 249,066
5,420,000 4.765% due 3/19/2008 865,372
SEK 3,200,000 Sweden Treasury Bill, 3.21%
due 12/19/2007 (d) 453,561
------------
2,547,603
===============================================================================
Time Deposits -- 13.8%
USD 24,238,985 Brown Brothers Harriman & Co., 4.62%
due 6/01/2007 24,238,985
- -------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $26,699,348) -- 15.3% 26,786,588
===============================================================================
Total Investments (Cost -- $212,774,777*) -- 121.4% 212,673,434
Liabilities in Excess of Other Assets -- (21.4%) (37,488,953)
------------
Net Assets -- 100.0% $175,184,481
============
* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost .......................................... $ 212,871,679
=============
Gross unrealized appreciation ........................... $ 1,669,464
Gross unrealized depreciation ........................... (1,867,709)
-------------
Net unrealized depreciation ............................. $ (198,245)
=============
** Asset-Backed and Mortgage-Backed are subject to principal paydowns as a
result of prepayments or refinancing of the underlying instruments. As a
result, the average life may be substantially less than the original
maturity.
(a) Floating rate security.
(b) Convertible security.
(c) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(d) Represents a zero coupon or step bond; the interest rate shown reflects
the effective yield at the time of purchase.
(e) 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. Industry classifications are shown as a percent of net assets. These
industry classifications are unaudited.
o Swaps outstanding as of May 31, 2007 were as follows:
- --------------------------------------------------------------------------------
Unrealized
Notional Appreciation
Amount (Depreciation)
- --------------------------------------------------------------------------------
Sold credit default protection on Dow Jones
CDX North America Investment Grade Index
Series 4 and receive 0.40%
Broker, JPMorgan Securities, Inc.
Expires June 2010 $1,000,000 $ 10,616
Bought credit default protection on FirstEnergy
Corp. and pay 0.46%
Broker, Citigroup Global Markets, Inc.
Expires March 2011 $ 500,000 (5,654)
- --------------------------------------------------------------------------------
Total $ 4,962
==========
o Forward foreign exchange contracts purchased as of May 31, 2007 were as
follows:
- --------------------------------------------------------------------------------
Unrealized
Foreign Currency Settlement Appreciation
Purchased Date (Depreciation)
- --------------------------------------------------------------------------------
PLN 375,000 August 2007 $ 8,093
JPY 44,615,250 January 2008 (10,956)
JPY 60,726,780 February 2008 (1,067)
KRW 301,455,000 February 2008 (935)
- --------------------------------------------------------------------------------
Total Unrealized Depreciation on
Forward Foreign Exchange Contracts --
Net (USD Commitment -- $1,357,860) $ (4,865)
========
o Currency Abbreviations:
BRL Brazilian Real
EGP Egyptian Pound
IDR Indonesian Rupiah
JPY Japanese Yen
KRW Korean Won
MYR Malaysian Ringgit
NOK Norwegian Krone
PEN Peru Nuevos Soles
PLN Polish Zloty
SEK Swedish Krona
SGD Singapore Dollar
THB Thai Baht
USD U.S. Dollar
See Notes to Financial Statements.
FDP SERIES, INC. MAY 31, 2007 33
Statements of Assets and Liabilities
MFS Van Franklin
Research Marsico Kampen Templeton
International Growth Value Total Return
As of May 31, 2007 FDP Fund FDP Fund FDP Fund FDP Fund
==============================================================================================================================
Assets
- ------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value* $ 177,064,595 $ 147,658,974 $ 148,668,711 $ 212,673,434
Investments in affiliated securities, at value** -- -- 36,900 --
Cash ............................................ 543 58,990 345 88,876
Foreign cash*** ................................. 907,100 -- -- 753,511
Unrealized appreciation on swaps ................ -- -- -- 10,616
Unrealized appreciation on forward
foreign exchange contracts .................... 4,381 -- -- 8,093
Receivables:
Securities sold ............................. 989,657 611,399 511,343 --
Capital shares sold ......................... 827,767 773,639 744,603 1,549,419
Interest .................................... 48 1,109 -- 1,328,485
Dividends ................................... 752,829 130,158 360,619 --
Principal paydowns .......................... -- -- -- 110,487
Swaps ....................................... -- -- -- 800
Prepaid expenses and other assets ............... 33,851 27,522 30,700 38,352
--------------------------------------------------------------
Total assets .................................... 180,580,771 149,261,791 150,353,221 216,562,073
--------------------------------------------------------------
==============================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on swaps ................ -- -- -- 5,654
Unrealized depreciation on forward
foreign exchange contracts .................... 840 -- -- 12,958
Swap premiums received .......................... -- -- -- 3,746
Deferred foreign capital gain tax ............... 35,191 -- -- --
Payables:
Securities purchased ........................ 4,481,911 639,870 133,487 40,111,741
Capital shares redeemed ..................... 342,441 265,493 279,305 432,788
Dividends to shareholders ................... -- -- -- 531,746
Distributor ................................. 124,089 103,266 106,167 97,516
Investment adviser .......................... 131,071 97,178 87,326 58,453
Other affiliates ............................ 31,710 27,684 27,505 33,817
Swaps ....................................... -- -- -- 460
Accrued expenses ................................ 128,041 63,424 73,093 88,713
--------------------------------------------------------------
Total liabilities ............................... 5,275,294 1,196,915 706,883 41,377,592
--------------------------------------------------------------
==============================================================================================================================
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets ...................................... $ 175,305,477 $ 148,064,876 $ 149,646,338 $ 175,184,481
==============================================================================================================================
Net Assets Consist of
- ------------------------------------------------------------------------------------------------------------------------------
Undistributed investment income/
accumulated investment loss -- net ............ $ 395,195 $ (116) $ 507,143 $ 301,464
Undistributed (accumulated)
realized capital gains (losses) -- net ........ 8,499,078 (1,058,518) 1,700,639 203,070
Unrealized appreciation (depreciation) -- net ... 23,994,751 19,003,417 19,685,518 (45,901)
--------------------------------------------------------------
Total undistributed earnings -- net ............. 32,889,024 17,944,783 21,893,300 458,633
--------------------------------------------------------------
Institutional Common Stock, $.10 par value,
100,000,000 shares authorized ................. 20,390 21,521 22,005 26,347
Investor A Common Stock, $.10 par value,
100,000,000 shares authorized ................. 210,694 212,894 210,763 329,171
Investor B Common Stock, $.10 par value,
100,000,000 shares authorized ................. 39,384 39,361 40,477 44,386
Investor C Common Stock, $.10 par value,
100,000,000 shares authorized ................. 938,509 943,893 937,300 1,376,621
Paid-in capital in excess of par ................ 141,207,476 128,902,424 126,542,493 172,949,323
--------------------------------------------------------------
Net assets ...................................... $ 175,305,477 $ 148,064,876 $ 149,646,338 $ 175,184,481
==============================================================
34 FDP SERIES, INC. MAY 31, 2007
Statements of Assets and Liabilities (concluded)
MFS Van Franklin
Research Marsico Kampen Templeton
International Growth Value Total Return
As of May 31, 2007 FDP Fund FDP Fund FDP Fund FDP Fund
==============================================================================================================================
Net Asset Value
- ------------------------------------------------------------------------------------------------------------------------------
Institutional:
Net assets .................................. $ 2,984,010 $ 2,657,385 $ 2,739,308 $ 2,597,415
==============================================================
Shares outstanding .......................... 203,902 215,210 220,049 263,474
==============================================================
Net asset value per share ................... $ 14.63 $ 12.35 $ 12.45 $ 9.86
==============================================================
Investor A:
Net assets .................................. $ 30,747,135 $ 26,181,050 $ 26,194,286 $ 32,460,295
==============================================================
Shares outstanding .......................... 2,106,940 2,128,945 2,107,631 3,291,712
==============================================================
Net asset value per share ................... $ 14.59 $ 12.30 $ 12.43 $ 9.86
==============================================================
Investor B:
Net assets .................................. $ 5,708,349 $ 4,772,306 $ 5,002,267 $ 4,376,958
==============================================================
Shares outstanding .......................... 393,842 393,605 404,773 443,862
==============================================================
Net asset value per share ................... $ 14.49 $ 12.12 $ 12.36 $ 9.86
==============================================================
Investor C:
Net assets .................................. $ 135,865,983 $ 114,454,135 $ 115,710,477 $ 135,749,813
==============================================================
Shares outstanding .......................... 9,385,095 9,438,931 9,373,001 13,766,204
==============================================================
Net asset value per share ................... $ 14.48 $ 12.13 $ 12.35 $ 9.86
==============================================================
* Identified cost for unaffiliated securities $ 153,029,328 $ 128,655,564 $ 128,992,700 $ 212,774,777
==============================================================
** Identified cost for affiliated securities . -- -- $ 27,393 --
==============================================================
*** Cost ...................................... $ 912,865 -- -- $ 708,544
==============================================================
See Notes to Financial Statements.
FDP SERIES, INC. MAY 31, 2007 35
Statements of Operations
MFS Van Franklin
Research Marsico Kampen Templeton
International Growth Value Total Return
For the Year Ended May 31, 2007 FDP Fund FDP Fund FDP Fund FDP Fund
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest** ...................................... $ 121,130 $ 474,565 $ 503,649 $ 6,836,571
Dividends*+ ..................................... 3,251,182 984,669 2,536,890 --
--------------------------------------------------------------
Total income .................................... 3,372,312 1,459,234 3,040,539 6,836,571
--------------------------------------------------------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ........................ 1,164,516 871,008 772,866 529,589
Service fees and distribution fees -- Investor C 990,766 832,520 844,033 817,707
Transfer agent fees -- Investor C ............... 121,109 108,467 109,249 127,115
Custodian fees .................................. 259,049 27,739 41,185 59,437
Accounting services ............................. 91,333 77,674 79,267 90,756
Registration fees ............................... 51,307 63,960 58,796 65,396
Service fees -- Investor A ...................... 57,253 48,479 48,718 61,428
Professional fees ............................... 43,538 45,011 50,286 46,585
Service fees and distribution fees -- Investor B 50,170 41,547 43,909 30,624
Printing and shareholder reports ................ 28,796 24,220 24,551 29,838
Offering costs .................................. 20,092 20,092 20,092 20,092
Transfer agent fees -- Investor A ............... 2,520 18,646 18,809 28,781
Directors' fees and expenses .................... 15,897 14,621 15,222 16,091
Pricing services ................................ 7,448 1,233 1,244 34,059
Transfer agent fees -- Institutional ............ 26,580 1,879 1,925 2,054
Transfer agent fees -- Investor B ............... 6,169 5,295 5,567 5,000
Other ........................................... 19,566 18,654 20,858 22,440
--------------------------------------------------------------
Total expenses before waiver .................... 2,956,109 2,221,045 2,156,577 1,986,992
Waiver of expenses .............................. (338) -- -- --
--------------------------------------------------------------
Total expenses after waiver ..................... 2,955,771 2,221,045 2,156,577 1,986,992
--------------------------------------------------------------
Investment income (loss) -- net ................. 416,541 (761,811) 883,962 4,849,579
--------------------------------------------------------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on:
Investments -- net .......................... 9,567,556 (896,741) 2,048,496 901,449
Swaps -- net ................................ -- -- -- 16,592
Foreign currency transactions -- net ........ (26,204) (29) -- (16,779)
--------------------------------------------------------------
Total realized gain (loss) -- net ............... 9,541,352 (896,770) 2,048,496 901,262
--------------------------------------------------------------
Change in unrealized appreciation/depreciation on:
Investments -- net .......................... 19,163,817@ 17,872,991 18,058,100 1,456,379
Swaps -- net ................................ -- -- -- 1,387
Foreign currency transactions -- net ........ (14,759) 7 -- 23,484
--------------------------------------------------------------
Total unrealized appreciation -- net ............ 19,149,058 17,872,998 18,058,100 1,481,250
--------------------------------------------------------------
Total realized and unrealized gain -- net ....... 28,690,410 16,976,228 20,106,596 2,382,512
--------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 29,106,951 $ 16,214,417 $ 20,990,558 $ 7,232,091
==============================================================
* Withholding tax on dividends .............. $ 336,045 $ 22,664 $ 24,548 --
==============================================================
** Withholding tax on interest ............... -- -- -- $ 44,934
==============================================================
+ Dividends from affiliates ................. -- -- $ 1,140 --
==============================================================
@ Including $35,191 deferred foreign capital gain tax.
See Notes to Financial Statements.
36 FDP SERIES, INC. MAY 31, 2007
Statements of Changes in Net Assets MFS Research International FDP Fund
For the
For the Period
Year Ended July 27, 2005+
May 31, to May 31,
Increase (Decrease) in Net Assets: 2007 2006
====================================================================================================================
Operations
- --------------------------------------------------------------------------------------------------------------------
Investment income -- net .......................................... $ 416,541 $ 274,712
Realized gain -- net .............................................. 9,541,352 2,063,664
Unrealized appreciation -- net .................................... 19,149,058 4,845,693
---------------------------------
Net increase in net assets resulting from operations .............. 29,106,951 7,184,069
---------------------------------
====================================================================================================================
Dividends & Distributions to Shareholders
- --------------------------------------------------------------------------------------------------------------------
Investment income -- net:
Institutional ................................................. (14,701) --
Investor A .................................................... (152,437) --
Investor B .................................................... (23,677) --
Investor C .................................................... (454,601) --
Realized gain -- net:
Institutional ................................................. (54,298) --
Investor A .................................................... (586,944) --
Investor B .................................................... (119,862) --
Investor C .................................................... (2,141,664) --
---------------------------------
Net decrease in net assets resulting from dividends to shareholders (3,548,184) --
---------------------------------
====================================================================================================================
Capital Share Transactions
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions 62,529,570 80,000,146
---------------------------------
====================================================================================================================
Redemption Fees
- --------------------------------------------------------------------------------------------------------------------
Redemption fees ................................................... 4,267 3,658
---------------------------------
====================================================================================================================
Net Assets
- --------------------------------------------------------------------------------------------------------------------
Total increase in net assets ...................................... 88,092,604 87,187,873
Beginning of period ............................................... 87,212,873 25,000
---------------------------------
End of period* .................................................... $ 175,305,477 $ 87,212,873
=================================
* Undistributed investment income -- net ...................... $ 395,195 $ 365,695
=================================
+ Commencement of operations.
See Notes to Financial Statements.
FDP SERIES, INC. MAY 31, 2007 37
Statements of Changes in Net Assets Marsico Growth FDP Fund
For the
For the Period
Year Ended July 27, 2005+
May 31, to May 31,
Increase (Decrease) in Net Assets: 2007 2006
====================================================================================================================
Operations
- --------------------------------------------------------------------------------------------------------------------
Investment loss -- net ............................................ $ (761,811) $ (354,653)
Realized loss -- net .............................................. (896,770) (2,133)
Unrealized appreciation -- net .................................... 17,872,998 1,130,419
---------------------------------
Net increase in net assets resulting from operations .............. 16,214,417 773,633
---------------------------------
====================================================================================================================
Capital Share Transactions
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions 59,837,834 71,213,992
---------------------------------
====================================================================================================================
Net Assets
- --------------------------------------------------------------------------------------------------------------------
Total increase in net assets ...................................... 76,052,251 71,987,625
Beginning of period ............................................... 72,012,625 25,000
---------------------------------
End of period* .................................................... $ 148,064,876 $ 72,012,625
=================================
* Accumulated investment loss -- net .......................... $ (116) --
=================================
+ Commencement of operations.
See Notes to Financial Statements.
38 FDP SERIES, INC. MAY 31, 2007
Statements of Changes in Net Assets Van Kampen Value FDP Fund
For the
For the Period
Year Ended July 27, 2005+
May 31, to May 31,
Increase (Decrease) in Net Assets: 2007 2006
====================================================================================================================
Operations
- --------------------------------------------------------------------------------------------------------------------
Investment income -- net .......................................... $ 883,962 $ 211,489
Realized gain -- net .............................................. 2,048,496 369,650
Unrealized appreciation -- net .................................... 18,058,100 1,627,418
---------------------------------
Net increase in net assets resulting from operations .............. 20,990,558 2,208,557
---------------------------------
====================================================================================================================
Dividends & Distributions to Shareholders
- --------------------------------------------------------------------------------------------------------------------
Investment income -- net:
Institutional ................................................. (21,372) (13,446)
Investor A .................................................... (194,429) (23,640)
Investor B .................................................... (18,119) (4,422)
Investor C .................................................... (392,903) (61,899)
Realized gain -- net:
Institutional ................................................. (11,793) (16)
Investor A .................................................... (127,710) (32)
Investor B .................................................... (30,636) (11)
Investor C .................................................... (547,164) (145)
---------------------------------
Net decrease in net assets resulting from dividends to shareholders (1,344,126) (103,611)
---------------------------------
====================================================================================================================
Capital Share Transactions
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions 55,889,410 71,980,550
---------------------------------
====================================================================================================================
Net Assets
- --------------------------------------------------------------------------------------------------------------------
Total increase in net assets ...................................... 75,535,842 74,085,496
Beginning of period ............................................... 74,110,496 25,000
---------------------------------
End of period* .................................................... $ 149,646,338 $ 74,110,496
=================================
* Undistributed investment income -- net ...................... $ 507,143 $ 229,912
=================================
+ Commencement of operations.
See Notes to Financial Statements.
FDP SERIES, INC. MAY 31, 2007 39
Statements of Changes in Net Assets Franklin Templeton Total Return FDP Fund
For the
For the Period
Year Ended July 27, 2005+
May 31, to May 31,
Increase (Decrease) in Net Assets: 2007 2006
====================================================================================================================
Operations
- --------------------------------------------------------------------------------------------------------------------
Investment income -- net .......................................... $ 4,849,579 $ 1,255,067
Realized gain (loss) -- net ....................................... 901,262 (416,118)
Unrealized appreciation (depreciation) -- net ..................... 1,481,250 (1,527,151)
---------------------------------
Net increase (decrease) in net assets resulting from operations ... 7,232,091 (688,202)
---------------------------------
====================================================================================================================
Dividends & Distributions to Shareholders
- --------------------------------------------------------------------------------------------------------------------
Investment income -- net:
Institutional ................................................. (74,952) (92,936)
Investor A .................................................... (1,018,150) (251,055)
Investor B .................................................... (147,832) (46,379)
Investor C .................................................... (3,646,092) (931,612)
Realized gain -- net:
Institutional ................................................. -- (1,452)
Investor A .................................................... -- (2,853)
Investor B .................................................... -- (631)
Investor C .................................................... -- (13,440)
---------------------------------
Net decrease in net assets resulting from dividends to shareholders (4,887,026) (1,340,358)
---------------------------------
====================================================================================================================
Capital Share Transactions
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions 84,282,710 90,560,266
---------------------------------
====================================================================================================================
Net Assets
- --------------------------------------------------------------------------------------------------------------------
Total increase in net assets ...................................... 86,627,775 88,531,706
Beginning of period ............................................... 88,556,706 25,000
---------------------------------
End of period* .................................................... $ 175,184,481 $ 88,556,706
=================================
* Undistributed investment income -- net ...................... $ 301,464 $ 158,709
=================================
+ Commencement of operations.
See Notes to Financial Statements.
40 FDP SERIES, INC. MAY 31, 2007
Financial Highlights Institutional
MFS Research Marsico Growth
International FDP Fund FDP Fund
------------------------------- ----------------------------
For the For the For the For the
Year Period Year Period
Ended July 27, 2005+ Ended July 27, 2005+
The following per share data and ratios have been derived May 31, to May 31, May 31, to May 31,
from information provided in the financial statements. 2007 2006 2007 2006
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 12.21 $ 10.00 $ 10.70 $ 10.00
================================================================
Investment income (loss) -- net** ............... .16 .08 .02 (.04)
Realized and unrealized gain -- net ............. 2.76*** 2.13*** 1.63 .74
----------------------------------------------------------------
Total from investment operations ................ 2.92 2.21 1.65 .70
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................... (.11) -- -- --
Realized gain -- net ........................ (.39) -- -- --
----------------------------------------------------------------
Total distributions ............................. (.50) -- -- --
----------------------------------------------------------------
Net asset value, end of period .................. $ 14.63 $ 12.21 $ 12.35 $ 10.70
================================================================
=================================================================================================================================
Total Investment Return++
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .............. 24.62% 22.10%@ 15.42% 7.00%@
================================================================
=================================================================================================================================
Ratios to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver ......................... 1.42% 1.89%* 1.17% 1.60%*
================================================================
Expenses ........................................ 1.42% 2.58%* 1.17% 1.90%*
================================================================
Investment income (loss) -- net ................. 1.22% .79%* .17% (.43%)*
================================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $ 2,984 $ 1,995 $ 2,657 $ 1,174
================================================================
Portfolio turnover .............................. 69.90% 67.19% 44.30% 31.31%
================================================================
* Annualized.
** Based on average shares outstanding.
*** Includes redemption fee, which is less than $.01 per share.
+ Commencement of operations.
++ Total investment returns exclude the effects of any sales charges.
@ Aggregate total investment return.
See Notes to Financial Statements.
FDP SERIES, INC. MAY 31, 2007 41
Financial Highlights (continued) Institutional
Van Kampen Franklin Templeton
Value FDP Fund Total Return FDP Fund
------------------------------- ----------------------------
For the For the For the For the
Year Period Year Period
Ended July 27, 2005+ Ended July 27, 2005+
The following per share data and ratios have been derived May 31, to May 31, May 31, to May 31,
from information provided in the financial statements. 2007 2006 2007 2006
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 10.50 $ 10.00 $ 9.63 $ 10.00
================================================================
Investment income -- net** ...................... .19 .12 .43 .30
Realized and unrealized gain (loss) -- net ...... 1.86 .43 .22 (.36)
----------------------------------------------------------------
Total from investment operations ................ 2.05 .55 .65 (.06)
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................... (.05) (.05) (.42) (.31)
Realized gain -- net ........................ (.05) --@@ -- --@@
----------------------------------------------------------------
Total distributions ............................. (.10) (.05) (.42) (.31)
----------------------------------------------------------------
Net asset value, end of period .................. $ 12.45 $ 10.50 $ 9.86 $ 9.63
================================================================
=================================================================================================================================
Total Investment Return++
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .............. 20.95% 5.56%@ 6.97% (.55%)@
================================================================
=================================================================================================================================
Ratios to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver ......................... 1.08% 1.58%* .79% 1.28%*
================================================================
Expenses ........................................ 1.08% 1.81%* .79% 1.47%*
================================================================
Investment income -- net ........................ 1.67% 1.31%* 4.37% 3.55%*
================================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $ 2,739 $ 1,202 $ 2,597 $ 982
================================================================
Portfolio turnover .............................. 26.02% 14.08% 252.98% 122.09%
================================================================
* Annualized.
** Based on average shares outstanding.
+ Commencement of operations.
++ Total investment returns exclude the effects of any sales charges.
@ Aggregate total investment return.
@@ Amount is less than ($.01) per share.
See Notes to Financial Statements.
42 FDP SERIES, INC. MAY 31, 2007
Financial Highlights (continued) Investor A
MFS Research Marsico Growth
International FDP Fund FDP Fund
------------------------------- ----------------------------
For the For the For the For the
Year Period Year Period
Ended July 27, 2005+ Ended July 27, 2005+
The following per share data and ratios have been derived May 31, to May 31, May 31, to May 31,
from information provided in the financial statements. 2007 2006 2007 2006
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 12.19 $ 10.00 $ 10.69 $ 10.00
================================================================
Investment income (loss) -- net** ............... .12 .13 (.01) (.04)
Realized and unrealized gain -- net ............. 2.75 2.06 1.62 .73
----------------------------------------------------------------
Total from investment operations ................ 2.87 2.19 1.61 .69
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................... (.10) -- -- --
Realized gain -- net ........................ (.37) -- -- --
----------------------------------------------------------------
Total dividends and distributions ............... (.47) -- -- --
----------------------------------------------------------------
Net asset value, end of period .................. $ 14.59 $ 12.19 $ 12.30 $ 10.69
================================================================
=================================================================================================================================
Total Investment Return++
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .............. 21.90%@ 15.06% 6.90%@
================================================================
=================================================================================================================================
Ratios to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver ......................... 1.67% 2.15%* 1.42% 1.72%*
================================================================
Expenses ........................................ 1.67% 2.65%* 1.42% 1.76%*
================================================================
Investment income (loss) -- net ................. .92% 1.36%* (.08%) (.48%)*
================================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $ 30,747 $ 15,321 $ 26,181 $ 12,910
================================================================
Portfolio turnover .............................. 69.90% 67.19% 44.30% 31.31%
================================================================
* Annualized.
** Based on average shares outstanding.
+ Commencement of operations.
++ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
See Notes to Financial Statements.
FDP SERIES, INC. MAY 31, 2007 43
Financial Highlights (continued) Investor A
Van Kampen Franklin Templeton
Value FDP Fund Total Return FDP Fund
------------------------------- ----------------------------
For the For the For the For the
Year Period Year Period
Ended July 27, 2005+ Ended July 27, 2005+
The following per share data and ratios have been derived May 31, to May 31, May 31, to May 31,
from information provided in the financial statements. 2007 2006 2007 2006
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 10.49 $ 10.00 $ 9.63 $ 10.00
================================================================
Investment income -- net** ...................... .16 .11 .40 .29
Realized and unrealized gain (loss) -- net ...... 1.87 .43 .23 (.39)
----------------------------------------------------------------
Total from investment operations ................ 2.03 .54 .63 (.10)
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................... (.04) (.05) (.40) (.27)
Realized gain -- net ........................ (.05) --@@ -- --@@
----------------------------------------------------------------
Total dividends and distributions ............... (.09) (.05) (.40) (.27)
----------------------------------------------------------------
Net asset value, end of period .................. $ 12.43 $ 10.49 $ 9.86 $ 9.63
================================================================
=================================================================================================================================
Total Investment Return++
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .............. 5.40%@ 6.71% (.76%)@
================================================================
=================================================================================================================================
Ratios to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver ......................... 1.33% 1.69%* 1.04% 1.31%*
================================================================
Expenses ........................................ 1.33% 1.71%* 1.04% 1.32%*
================================================================
Investment income -- net ........................ 1.42% 1.26%* 4.12% 3.67%*
================================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $ 26,194 $ 13,135 $ 32,460 $ 16,018
================================================================
Portfolio turnover .............................. 26.02% 14.08% 252.98% 122.09%
================================================================
* Annualized.
** Based on average shares outstanding.
+ Commencement of operations.
++ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
@@ Amount is less than ($.01) per share.
See Notes to Financial Statements.
44 FDP SERIES, INC. MAY 31, 2007
Financial Highlights (continued) Investor B
MFS Research Marsico Growth
International FDP Fund FDP Fund
------------------------------- ----------------------------
For the For the For the For the
Year Period Year Period
Ended July 27, 2005+ Ended July 27, 2005+
The following per share data and ratios have been derived May 31, to May 31, May 31, to May 31,
from information provided in the financial statements. 2007 2006 2007 2006
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 12.11 $ 10.00 $ 10.62 $ 10.00
================================================================
Investment income (loss) -- net** ............... --@@ .04 (.10) (.12)
Realized and unrealized gain -- net ............. 2.76*** 2.07*** 1.60 .74
----------------------------------------------------------------
Total from investment operations ................ 2.76 2.11 1.50 .62
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................... (.06) -- -- --
Realized gain -- net ........................ (.32) -- -- --
----------------------------------------------------------------
Total dividends and distributions ............... (.38) -- -- --
----------------------------------------------------------------
Net asset value, end of period .................. $ 14.49 $ 12.11 $ 12.12 $ 10.62
================================================================
=================================================================================================================================
Total Investment Return++
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .............. 23.34% 21.10%@ 14.12% 6.20%@
================================================================
=================================================================================================================================
Ratios to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver ......................... 2.46% 2.92%* 2.20% 2.52%*
================================================================
Expenses ........................................ 2.46% 3.42%* 2.20% 2.57%*
================================================================
Investment income (loss) -- net ................. (.01%) .43%* (.87%) (1.30%)*
================================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $ 5,708 $ 4,169 $ 4,772 $ 3,362
================================================================
Portfolio turnover .............................. 69.90% 67.19% 44.30% 31.31%
================================================================
* Annualized.
** Based on average shares outstanding.
*** Includes redemption fee, which is less than $.01 per share.
+ Commencement of operations.
++ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
@@ Amount is less than ($.01) per share.
See Notes to Financial Statements.
FDP SERIES, INC. MAY 31, 2007 45
Financial Highlights (continued) Investor B
Van Kampen Franklin Templeton
Value FDP Fund Total Return FDP Fund
------------------------------- ----------------------------
For the For the For the For the
Year Period Year Period
Ended July 27, 2005+ Ended July 27, 2005+
The following per share data and ratios have been derived May 31, to May 31, May 31, to May 31,
from information provided in the financial statements. 2007 2006 2007 2006
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 10.45 $ 10.00 $ 9.63 $ 10.00
================================================================
Investment income -- net** ...................... .07 .04 .35 .25
Realized and unrealized gain (loss) -- net ...... 1.91 .43 .22 (.39)
----------------------------------------------------------------
Total from investment operations ................ 1.98 .47 .57 (.14)
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................... (.02) (.02) (.34) (.23)
Realized gain -- net ........................ (.05) --@@ -- --@@
----------------------------------------------------------------
Total dividends and distributions ............... (.07) (.02) (.34) (.23)
----------------------------------------------------------------
Net asset value, end of period .................. $ 12.36 $ 10.45 $ 9.86 $ 9.63
================================================================
=================================================================================================================================
Total Investment Return++
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .............. 19.67% 4.76%@ 6.15% (1.19%)@
================================================================
=================================================================================================================================
Ratios to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver ......................... 2.12% 2.49%* 1.57% 1.85%*
================================================================
Expenses ........................................ 2.12% 2.52%* 1.57% 1.86%*
================================================================
Investment income -- net ........................ .63% .45%* 3.59% 3.12%*
================================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $ 5,002 $ 3,671 $ 4,377 $ 3,395
================================================================
Portfolio turnover .............................. 26.02% 14.08% 252.98% 122.09%
================================================================
* Annualized.
** Based on average shares outstanding.
+ Commencement of operations.
++ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
@@ Amount is less than ($.01) per share.
See Notes to Financial Statements.
46 FDP SERIES, INC. MAY 31, 2007
Financial Highlights (continued) Investor C
MFS Research Marsico Growth
International FDP Fund FDP Fund
------------------------------- ----------------------------
For the For the For the For the
Year Period Year Period
Ended July 27, 2005+ Ended July 27, 2005+
The following per share data and ratios have been derived May 31, to May 31, May 31, to May 31,
from information provided in the financial statements. 2007 2006 2007 2006
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 12.11 $ 10.00 $ 10.62 $ 10.00
================================================================
Investment income (loss) -- net** ............... .02 .06 (.10) (.11)
Realized and unrealized gain -- net ............. 2.74*** 2.05*** 1.61 .73
----------------------------------------------------------------
Total from investment operations ................ 2.76 2.11 1.51 .62
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................... (.07) -- -- --
Realized gain -- net ........................ (.32) -- -- --
----------------------------------------------------------------
Total dividends and distributions ............... (.39) -- -- --
----------------------------------------------------------------
Net asset value, end of period .................. $ 14.48 $ 12.11 $ 12.13 $ 10.62
================================================================
=================================================================================================================================
Total Investment Return++
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .............. 23.39% 21.10%@ 14.22% 6.20%@
================================================================
=================================================================================================================================
Ratios to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver ......................... 2.44% 2.92%* 2.19% 2.51%*
================================================================
Expenses ........................................ 2.44% 3.41%* 2.19% 2.55%*
================================================================
Investment income (loss) -- net ................. 18% .57%* (.85%) (1.27%)*
================================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $ 135,866 $ 65,729 $ 114,454 $ 54,566
================================================================
Portfolio turnover .............................. 69.90% 67.19% 44.30% 31.31%
================================================================
* Annualized.
** Based on average shares outstanding.
*** Includes redemption fee, which is less than $.01 per share.
+ Commencement of operations.
++ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
See Notes to Financial Statements.
FDP SERIES, INC. MAY 31, 2007 47
Financial Highlights (concluded) Investor C
Van Kampen Franklin Templeton
Value FDP Fund Total Return FDP Fund
------------------------------- ----------------------------
For the For the For the For the
Year Period Year Period
Ended July 27, 2005+ Ended July 27, 2005+
The following per share data and ratios have been derived May 31, to May 31, May 31, to May 31,
from information provided in the financial statements. 2007 2006 2007 2006
=================================================================================================================================
Per Share Operating Performance
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 10.45 $ 10.00 $ 9.63 $ 10.00
================================================================
Investment income -- net** ...................... .07 .04 .35 .25
Realized and unrealized gain (loss) -- net ...... 1.90 .44 .22 (.40)
----------------------------------------------------------------
Total from investment operations ................ 1.97 .48 .57 (.15)
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................... (.02) (.03) (.34) (.22)
Realized gain -- net ........................ (.05) --@@ -- --@@
----------------------------------------------------------------
Total dividends and distributions ............... (.07) (.03) (.34) (.22)
----------------------------------------------------------------
Net asset value, end of period .................. $ 12.35 $ 10.45 $ 9.86 $ 9.63
================================================================
=================================================================================================================================
Total Investment Return++
- ---------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .............. 19.67% 4.78%@ 6.10% (1.23%)@
================================================================
=================================================================================================================================
Ratios to Average Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver ......................... 2.11% 2.47%* 1.62% 1.90%*
================================================================
Expenses ........................................ 2.11% 2.50%* 1.62% 1.91%*
================================================================
Investment income -- net ........................ .65% .48%* 3.54% 3.07%*
================================================================
=================================================================================================================================
Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $ 115,710 $ 56,102 $ 135,750 $ 68,162
================================================================
Portfolio turnover .............................. 26.02% 14.08% 252.98% 122.09%
================================================================
* Annualized.
** Based on average shares outstanding.
+ Commencement of operations.
++ Total investment returns exclude the effects of sales charges.
@ Aggregate total investment return.
@@ Amount is less than ($.01) per share.
See Notes to Financial Statements.
48 FDP SERIES, INC. MAY 31, 2007
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, as an open-end management investment company. Each Fund is
organized as a diversified, open-end investment company. The Funds' financial
statements are prepared in conformity with U.S. generally accepted accounting
principles, 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. Effective October 2, 2006, Class I, Class A, Class B
and Class C Shares were redesignated Institutional, Investor A, Investor B and
Investor C Shares, respectively. Institutional Shares are sold only to certain
eligible investors. Investor A Shares are 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 certain changes to the Investor A distribution plan). Income, expenses
(other than expenses attributable to a specific class) and realized and
unrealized gains and losses are allocated daily to each class based on its
relative net assets. The following is a summary of significant accounting
policies followed by the Corporation.
(a) Valuation of investments -- Debt securities are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid price
in the OTC market or on the basis of values obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Corporation under the general
direction of the Board of Directors. Such valuations and procedures will be
reviewed periodically by the Board of Directors of the Corporation. Financial
futures contracts and options thereon, which are traded on exchanges, are valued
at their closing prices as of the close of such exchanges. Options written or
purchased are valued at the last sales price in the case of exchange-traded
options. In the case of options traded in the OTC market, valuation is the last
asked price (options written) or the last bid price (options purchased). Swap
agreements are valued based upon quoted fair valuations received daily by the
Funds from a pricing service or counterparty. Valuation of short-term investment
vehicles is generally based on the net asset value of the underlying investment
vehicle or amortized cost.
Repurchase agreements are valued at cost plus accrued interest. Investments in
open-end investment companies are valued at their net asset value each business
day. Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Corporation.
Equity securities held by the Funds that are traded on stock exchanges or the
NASDAQ Global Market are valued at the last sale price or official close price
on the exchange, as of the close of business on the day the securities are being
valued or, lacking any sales, at the last available bid price for long
positions, and at the last available asked price for short positions. In cases
where equity securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market by or under the
authority of the Board of Directors of the Corporation. Long positions traded in
the OTC markets, NASDAQ Capital Market or Bulletin Board are valued at the last
available bid price obtained from one or more dealers or pricing services
approved by the Board of Directors of the Corporation. Short positions traded in
the OTC markets are valued at the last available asked price. Portfolio
securities that are traded both in the OTC markets and on a stock exchange are
valued according to the broadest and most representative market.
Generally, trading in foreign securities, as well as U.S. government securities,
money market instruments and certain fixed income 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 asset value of the Funds' shares are determined as of such times.
Foreign currency exchange rates will generally 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 Funds' net asset value. 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 will be valued
FDP SERIES, INC. MAY 31, 2007 49
Notes to Financial Statements (continued)
at their fair value as determined in good faith by the Corporation's Board of
Directors or by BlackRock Advisors, LLC (the "Manager"), an indirect, wholly
owned subsidiary of BlackRock, Inc., using a pricing service and/or procedures
approved by the Corporation's Board of Directors.
(b) Derivative financial instruments -- Each Fund may engage in various
portfolio investment strategies both 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 due to changes in the value of the
contract due to an unfavorable change in the price of the underlying security or
index, or if the counterparty does not perform under the contract. The
counterparty for certain instruments may pledge cash or securities as
collateral.
o Financial futures contracts -- Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts.
Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield.
Upon entering into a contract, the Fund deposits, and maintains as
collateral, such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
o Swaps -- Each Fund may enter into swap agreements, which are OTC Contracts
in which the Fund and a counterparty agree to make periodic net payments
on a specified notional amount. The net payments can be made for a set
period of time or may be triggered by a pre-determined credit event. The
net periodic payments may be based on a fixed or variable interest rate;
the change in market value of a specified security, basket of securities,
or index; or the return generated by a security. These periodic payments
received or made by the Fund are recorded in the accompanying Statement of
Operations as realized gains or losses, respectively. Gains or losses are
also realized upon termination of the swap agreements. Swaps are
marked-to-market daily and changes in value are recorded as unrealized
appreciation (depreciation). Risks include changes in the returns of the
underlying instruments, failure of the counterparties to perform under the
contracts' terms and the possible lack of liquidity with respect to the
swap agreements.
o Forward foreign exchange contracts -- Each Fund may enter into forward
foreign exchange contracts as a hedge against either specific transactions
or portfolio positions. 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 Foreign currency options and futures -- Each Fund may purchase or sell
listed or OTC foreign currency options, foreign currency futures and
related options on foreign currency futures as a short or long hedge
against possible variations in foreign exchange rates. Such transactions
may be effected with respect to hedges on non-U.S. dollar denominated
securities owned by the Fund, sold by the Fund but not yet delivered, or
committed or anticipated to be purchased by the Fund.
o Options -- Each Fund may write and purchase covered call and put options.
When the Fund writes an option, an amount equal to the premium received by
the Fund is reflected as an asset and an equivalent liability. The amount
of the liability is subsequently marked-to-market to reflect the current
value of the option written. When a security is purchased or sold through
an exercise of an option, the related premium paid (or received) is added
to (or deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option expires
(or the Fund enters into a closing transaction), the Fund realizes a gain
or loss on the option to the extent of the premiums received or paid (or
gain or loss to the extent the cost of the closing transaction exceeds the
premium paid or received).
Written and purchased options are non-income producing investments.
(c) Foreign currency transactions -- Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized. Assets
and liabilities denominated in foreign currencies are valued at the exchange
rate at the end of the period. Foreign currency transactions are the result of
settling (realized) or valuing (unrealized) assets or liabilities expressed in
foreign currencies into U.S. dollars. Realized and unrealized gains or losses
from investments
50 FDP SERIES, INC. MAY 31, 2007
Notes to Financial Statements (continued)
include the effects of foreign exchange rates on investments. The Funds may
invest in foreign securities, which may involve a number of risk factors and
special considerations not present with investments in securities of U.S.
corporations.
(d) Income taxes -- It is the Funds' 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 law, withholding taxes may be imposed on interest, dividends and
capital gains at various rates.
(e) Security transactions and investment income -- Security 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 date.
Interest income is recognized on the accrual basis. The Funds amortize all
premiums and discounts on debt securities.
(f) Offering costs -- Prepaid offering costs are amortized over a 12-month
period beginning with the commencement of operations of each Fund.
(g) 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.
(h) Securities lending -- Each Fund may lend securities to financial
institutions that provide cash or securities issued or guaranteed by the U.S.
government as collateral, which will be maintained at all times in an amount
equal to at least 100% of the current market value of the loaned securities. The
market value of the loaned securities is determined at the close of business of
the Fund and any additional required collateral is delivered to the Fund on the
next business day. Where the Fund receives securities as collateral for the
loaned securities, it collects a fee from the borrower. The Fund typically
receives the income on the loaned securities but does not receive the income on
the collateral. Where the Fund receives cash collateral, it may invest such
collateral and retain the amount earned on such investment, net of any amount
rebated to the borrower. Loans of securities are terminable at any time and the
borrower, after notice, is required to return borrowed securities within five
business days. The Fund may pay reasonable finder's, lending agent,
administrative and custodial fees in connection with its loans. In the event
that the borrower defaults on its obligation to return borrowed securities
because of insolvency or for any other reason, the Fund could experience delays
and costs in gaining access to the collateral. The Fund also could suffer a loss
where the value of the collateral falls below the market value of the borrowed
securities, in the event of borrower default or in the event of losses on
investments made with cash collateral.
(i) Recent accounting pronouncements -- In July 2006, the Financial Accounting
Standards Board released FASB Interpretation No. 48 ("FIN 48"), "Accounting for
Uncertainty in Income Taxes." FIN 48 provides guidance for how uncertain tax
positions should be recognized, measured, presented and disclosed in financial
statements. FIN 48 requires the evaluation of tax positions taken in the course
of preparing the Funds' tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
benefits of positions not deemed to meet the more-likely-than-not threshold
would be booked as a tax expense in the current year and recognized as: a
liability for unrecognized tax benefits; a reduction of an income tax refund
receivable; a reduction of deferred tax asset; an increase in deferred tax
liability; or a combination thereof. Adoption of FIN 48 is required for the last
net asset value calculation in the first required financial statement reporting
period for fiscal years beginning after December 15, 2006. The impact on each
Fund's financial statements, if any, is currently being assessed.
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. At this time, management is evaluating the implications of FAS 157
and its impact on each Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, the FASB issued Statement of Financial Accounting
Standards No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which 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
FDP SERIES, INC. MAY 31, 2007 51
Notes to Financial Statements (continued)
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. At this time, management is evaluating
the implications of FAS 159 and its impact on each Fund's financial statements,
if any, has not been determined.
(j) Reclassifications -- U.S. generally accepted accounting principles require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. These reclassifications have no
effect on net assets or net asset values per share.
MFS Research International FDP Fund
Accordingly, during the current year, $238,283 has been reclassified between
undistributed net realized capital gains and undistributed net investment
income, and $20,092 has been reclassified between paid-in capital in excess of
par and undistributed net investment income, as a result of permanent
differences attributable to gains from the sale of stock of passive foreign
investment companies, foreign currency transactions and nondeductible expenses.
Marsico Growth FDP Fund
Accordingly, during the current year, $761,724 has been reclassified between
paid-in capital in excess of par and accumulated net investment loss and $29 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.
Van Kampen Value FDP Fund
Accordingly, during the current year, $20,092 has been reclassified between
paid-in capital in excess of par and undistributed net investment income as a
result of a permanent difference attributable to nondeductible expenses.
Franklin Templeton Total Return FDP Fund
Accordingly, during the current year, $160,110 has been reclassified between
undistributed net realized capital gains and undistributed net investment income
and $20,092 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, accounting for paydowns, swap
agreements, amortization methods on fixed income securities, and nondeductible
expenses.
2. Investment Advisory Agreement and Transactions with Affiliates:
On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill
Lynch") combined Merrill Lynch's investment management business, Merrill Lynch
Investment Managers, L.P. ("MLIM"), and its affiliates, including Fund Asset
Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent
company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest
in the combined company and The PNC Financial Services Group, Inc. ("PNC"), has
approximately a 34% economic and voting interest. The new company operates under
the BlackRock name and is governed by a board of directors with a majority of
independent members.
On August 31, 2006, shareholders of each of the Funds approved a new Investment
Advisory Agreement with the Manager. The Manager was reorganized into a limited
liability company and renamed BlackRock Advisors, LLC. The new Investment
Advisory Agreement between each Fund and the Manager became effective on
September 29, 2006. Prior to September 29, 2006, FAM was the Investment Adviser.
The general partner of FAM is an indirect, wholly owned subsidiary of Merrill
Lynch, which is the limited partner. The Corporation has also entered into
separate Distribution Agreements and Distribution Plans with FAM Distributors,
Inc. ("FAMD") and BlackRock Distributors, Inc. and its affiliates ("BDI")
(collectively, the "Distributor"). FAMD is a wholly owned subsidiary of Merrill
Lynch Group, Inc., and BDI is an affiliate of BlackRock, Inc.
The Manager is responsible for the management of each of the Funds' portfolios
and provides the necessary personnel, facilities, equipment and certain other
services necessary to the operation of the Funds. For such services, the Manager
receives, at the end of each month, a fee with respect to each Fund at the
annual rates set forth below, which are based upon the average daily value of
the Fund's net assets.
- --------------------------------------------------------------------------------
Investment
Advisory
Fee
- --------------------------------------------------------------------------------
MFS Research International FDP Fund .............................. .90%
Marsico Growth FDP Fund .......................................... .80%
Van Kampen Value FDP Fund ........................................ .70%
Franklin Templeton Total Return FDP Fund ......................... .40%
- --------------------------------------------------------------------------------
On August 31, 2006, shareholders of each Fund approved a new sub-advisory
agreement between the Manager and each Fund's sub-adviser. These same
sub-advisers served as sub-advisers prior to September 29, 2006. The new
Sub-Advisory Agreement for each Fund became effective on
52 FDP SERIES, INC. MAY 31, 2007
Notes to Financial Statements (continued)
September 29, 2006. Pursuant to the Sub-Advisory Agreements, the Manager will
pay each sub-advisor a fee out of the Manager's management fee at the following
rates, based on each Fund's average daily net assets:
- --------------------------------------------------------------------------------
Sub-
Advisory
Sub-Adviser Fee
- --------------------------------------------------------------------------------
MFS Research Massachusetts Financial
International FDP Fund Services Company .45%
- --------------------------------------------------------------------------------
Marsico Growth Marsico Capital
FDP Fund Management LLC .40%
- --------------------------------------------------------------------------------
Van Kampen Value Van Kampen Asset
FDP Fund Management .35%
- --------------------------------------------------------------------------------
Franklin Templeton Total
Return FDP Fund Franklin Advisers, Inc. .25%
- --------------------------------------------------------------------------------
There was no increase in the aggregate fees paid by the Funds for these
services.
The Manager has agreed to voluntarily waive a portion of its fees so that each
class of shares of each Fund's total annual operating expenses (excluding
distribution and/or service fees) will not exceed 1.95%. For the year ended May
31, 2007, the Manager waived expenses as follows:
- --------------------------------------------------------------------------------
Investment
Advisory Waived
Fee Earned Amount
- --------------------------------------------------------------------------------
MFS Research International FDP Fund $1,164,516 $338
- --------------------------------------------------------------------------------
Pursuant to the Distribution Plans adopted by the Corporation on behalf of the
Funds, in accordance with Rule 12b-1 under the Investment Company Act of 1940,
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 .......... .25% .25% .25% .25%
Investor B .......... .25% .25% .25% .25%
Investor C .......... .25% .25% .25% .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 .......... .75% .75% .75% .50%
Investor C .......... .75% .75% .75% .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 fee compensates the
Distributors and each broker-dealer (including MLPF&S) for providing shareholder
servicing to Investor A, Investor B and Investor C shareholders. The ongoing
distribution fee compensates each Distributor and MLPF&S for providing
shareholder servicing and distribution-related services to Investor B and
Investor C shareholders.
For the year ended May 31, 2007, FAMD earned underwriting discounts and direct
commissions and MLPF&S earned 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:
FAMD ............... $ 22,587 $ 19,472 $ 19,369 $ 31,047
MLPF&S ............. $281,434 $248,129 $242,995 $353,323
- --------------------------------------------------------------------------------
For the year ended May 31, 2007, MLPF&S 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 .............. $ 6,082 $37,959
Marsico Growth FDP Fund .......................... $ 5,871 $33,229
Van Kampen Value FDP Fund ........................ $ 5,143 $32,770
Franklin Templeton Total Return
FDP Fund ......................................... $ 6,014 $41,280
Furthermore, MLPF&S received contingent deferred sales charges relating to
transactions subject to front-end sales charge waivers as follows:
- --------------------------------------------------------------------------------
Investor A
- --------------------------------------------------------------------------------
MFS Research International FDP Fund ............................ $400
Marsico Growth FDP Fund ........................................ $959
Van Kampen Value FDP Fund ...................................... $934
Franklin Templeton Total Return FDP Fund ....................... $287
- --------------------------------------------------------------------------------
The Funds have received an exemptive order from the Securities and Exchange
Commission permitting them to lend portfolio securities to MLPF&S or its
affiliates. Pursuant to that order, the Funds have retained BlackRock Investment
Management, LLC ("BIM"), an affiliate of the Manager, as the securities lending
agent for a fee based on a share of the returns on investment of cash
collateral. Prior to September
FDP SERIES, INC. MAY 31, 2007 53
Notes to Financial Statements (continued)
29, 2006, BIM was organized as Merrill Lynch Investment Managers, LLC ("MLIM,
LLC"), an affiliate of FAM and MLIM, LLC was the Funds' securities lending
agent. BIM may, on behalf of the Funds, invest cash collateral received by each
Fund for such loans, among other things, in a private investment company managed
by the Manager or in registered money market funds advised by the Manager or its
affiliates.
In addition, MLPF&S received $1,125 and $6,930 in commissions on the execution
of portfolio security transactions for the Marsico Growth FDP Fund and the Van
Kampen Value FDP Fund, respectively, for the year ended May 31, 2007.
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the
Manager, is the Funds' transfer agent. Prior to September 29, 2006, the Funds'
transfer agent was Financial Data Services, Inc. ("FDS"), a wholly owned
subsidiary of Merrill Lynch.
For the year ended May 31, 2007, each Fund reimbursed the Manager and/or FAM for
certain accounting services as follows:
- --------------------------------------------------------------------------------
For the Period For the Period
June 1, 2006 September 29,
to September 29, 2006
2006 to May 31, 2007
Reimbursement Reimbursement
to FAM to the Manager
- --------------------------------------------------------------------------------
MFS Research International
FDP Fund ............................. $ 691 $ 1,994
Marsico Growth FDP Fund .............. $ 499 $ 1,767
Van Kampen Value FDP Fund ............ $ 552 $ 1,705
Franklin Templeton Total Return
FDP Fund ............................. $ 606 $ 2,156
- --------------------------------------------------------------------------------
Prior to September 29, 2006, certain officers and/or directors of the
Corporation were officers and/or directors of FAM, PSI, FAMD, FDS, MLIM, Merrill
Lynch and/or MLIM, LLC.
Commencing September 29, 2006, 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), excluding short-term
securities, for the year ended May 31, 2007 were as follows:
- --------------------------------------------------------------------------------
Purchases Sales
- --------------------------------------------------------------------------------
MFS Research International
FDP Fund ...................... $147,503,964 $ 88,935,760
Marsico Growth FDP Fund ....... $100,493,659 $ 44,118,091
Van Kampen Value FDP Fund ..... $ 76,748,988 $ 26,243,212
Franklin Templeton Total Return
FDP Fund ...................... $452,226,260 $360,284,455
- --------------------------------------------------------------------------------
4. Capital Share Transactions:
MFS Research International FDP Fund
Net increase in net assets derived from capital share transactions was
$62,529,570 and $80,000,146 for the year ended May 31, 2007 and the period July
27, 2005 to May 31, 2006, respectively.
Transactions in capital shares for each class were as follows:
- --------------------------------------------------------------------------------
MFS Research International FDP Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 122,482 $ 1,600,478
Shares issued resulting from
reinvestment of dividends
and distributions ................ 5,162 64,897
----------------------------------------
Total issued ....................... 127,644 1,665,475
Shares redeemed .................... (87,053) (1,068,752)
----------------------------------------
Net increase ....................... 40,591 $ 596,723
========================================
- --------------------------------------------------------------------------------
Institutional Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................. 333,837 $ 3,507,905
Shares redeemed .............. (171,151) (2,084,775)
----------------------------------------
Net increase ................. 162,686 $ 1,423,130
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 1,131,645 $ 14,608,381
Shares issued resulting from
reinvestment of dividends
and distributions ................ 55,717 698,808
Automatic conversion of shares ..... 8,722 105,094
----------------------------------------
Total issued ....................... 1,196,084 15,412,283
Shares redeemed .................... (346,254) (4,564,089)
----------------------------------------
Net increase ....................... 849,830 $ 10,848,194
========================================
- --------------------------------------------------------------------------------
Investor A Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 1,352,853 $ 15,208,335
Automatic conversion of shares ..... 16,221 193,209
----------------------------------------
Total issued ....................... 1,369,074 15,401,544
Shares redeemed .................... (112,589) (1,320,955)
----------------------------------------
Net increase ....................... 1,256,485 $ 14,080,589
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
54 FDP SERIES, INC. MAY 31, 2007
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 169,762 $ 2,134,267
Shares issued resulting from
reinvestment of dividends
and distributions ................ 11,148 138,035
----------------------------------------
Total issued ....................... 180,910 2,272,302
----------------------------------------
Automatic conversion of shares ..... (8,782) (105,094)
Shares redeemed .................... (122,400) (1,582,977)
----------------------------------------
Total redeemed ..................... (131,182) (1,688,071)
----------------------------------------
Net increase ....................... 49,728 $ 584,231
========================================
- --------------------------------------------------------------------------------
Investor B Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 385,462 $ 4,281,654
----------------------------------------
Automatic conversion of shares ..... (16,287) (193,209)
Shares redeemed .................... (25,686) (298,866)
----------------------------------------
Total redeemed ..................... (41,973) (492,075)
----------------------------------------
Net increase ....................... 343,489 $ 3,789,579
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor C Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 5,034,243 $ 64,701,410
Shares issued resulting from
reinvestment of dividends
and distributions ................ 198,552 2,461,420
----------------------------------------
Total issued ....................... 5,232,795 67,162,830
Shares redeemed .................... (1,274,469) (16,662,408)
----------------------------------------
Net increase ....................... 3,958,326 $ 50,500,422
========================================
- --------------------------------------------------------------------------------
Investor C Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 5,802,799 $ 65,151,576
Shares redeemed .................... (376,655) (4,444,728)
----------------------------------------
Net increase ....................... 5,426,144 $ 60,706,848
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
The Fund charges a 2% redemption fee on the proceeds (calculated at market
value) of a redemption (either by sale or exchange) of Fund shares made within
30 days of purchase or exchange. The redemption fee is paid to the Fund and is
intended to offset the trading costs, market impact and other costs associated
with short-term trading into and out of the Fund.
Marsico Growth FDP Fund
Net increase in net assets derived from capital share transactions was
$59,837,834 and $71,213,992 for the year ended May 31, 2007 and the period July
27, 2005 to May 31, 2006, respectively.
Transactions in capital shares for each class were as follows:
- --------------------------------------------------------------------------------
Marsico Growth FDP Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 134,685 $ 1,526,340
Shares redeemed .................... (29,175) (330,385)
----------------------------------------
Net increase ....................... 105,510 $ 1,195,955
========================================
- --------------------------------------------------------------------------------
Institutional Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 322,503 $ 3,296,816
Shares redeemed .................... (213,428) (2,366,886)
----------------------------------------
Net increase ....................... 109,075 $ 929,930
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 1,194,236 $ 13,380,504
Automatic conversion of shares ..... 7,883 81,591
----------------------------------------
Total issued ....................... 1,202,119 13,462,095
Shares redeemed .................... (281,270) (3,215,476)
----------------------------------------
Net increase ....................... 920,849 $ 10,246,619
========================================
- --------------------------------------------------------------------------------
Investor A Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 1,277,950 $ 13,565,020
Automatic conversion of shares ..... 13,343 146,337
----------------------------------------
Total issued ....................... 1,291,293 13,711,357
Shares redeemed .................... (83,822) (901,010)
----------------------------------------
Net increase ....................... 1,207,471 $ 12,810,347
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 179,947 $ 1,959,762
----------------------------------------
Automatic conversion of shares ..... (7,945) (81,591)
Shares redeemed .................... (94,975) (1,061,969)
----------------------------------------
Total redeemed ..................... (102,920) (1,143,560)
----------------------------------------
Net increase ....................... 77,027 $ 816,202
========================================
- --------------------------------------------------------------------------------
Investor B Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 342,001 $ 3,585,289
----------------------------------------
Automatic conversion of shares ..... (13,401) (146,337)
Shares redeemed .................... (12,647) (134,681)
----------------------------------------
Total redeemed ..................... (26,048) (281,018)
----------------------------------------
Net increase ....................... 315,953 $ 3,304,271
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
FDP SERIES, INC. MAY 31, 2007 55
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Investor C Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 5,240,625 $ 58,200,560
Shares redeemed .................... (940,079) (10,621,502)
----------------------------------------
Net increase ....................... 4,300,546 $ 47,579,058
========================================
- --------------------------------------------------------------------------------
Investor C Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 5,398,293 $ 56,955,213
Shares redeemed .................... (260,533) (2,785,769)
----------------------------------------
Net increase ....................... 5,137,760 $ 54,169,444
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
Van Kampen Value FDP Fund
Net increase in net assets derived from capital share transactions was
$55,889,410 and $71,980,550 for the year ended May 31, 2007 and the period July
27, 2005 to May 31, 2006, respectively.
Transactions in capital shares for each class were as follows:
- --------------------------------------------------------------------------------
Van Kampen Value FDP Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 135,823 $ 1,539,887
Shares issued resulting from
reinvestment of dividends
and distributions ................ 2,876 31,656
----------------------------------------
Total issued ....................... 138,699 1,571,543
Shares redeemed .................... (33,091) (375,449)
----------------------------------------
Net increase ....................... 105,608 $ 1,196,094
========================================
- --------------------------------------------------------------------------------
Institutional Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 328,054 $ 3,305,623
Shares issued resulting from
reinvestment of dividends
and distributions ................ 1,301 13,182
----------------------------------------
Total issued ....................... 329,355 3,318,805
Shares redeemed .................... (215,539) (2,257,184)
----------------------------------------
Net increase ....................... 113,816 $ 1,061,621
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 1,127,612 $ 12,646,889
Automatic conversion of shares ..... 13,199 138,457
Shares issued resulting from
reinvestment of dividends
and distributions ................ 27,678 303,677
----------------------------------------
Total issued ....................... 1,168,489 13,089,023
Shares redeemed .................... (312,591) (3,552,028)
----------------------------------------
Net increase ....................... 855,898 $ 9,536,995
========================================
- --------------------------------------------------------------------------------
Investor A Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 1,305,920 $ 13,332,693
Automatic conversion of shares ..... 23,636 244,503
Shares issued resulting from
reinvestment of dividends
and distributions ................ 2,210 22,390
----------------------------------------
Total issued ....................... 1,331,766 13,599,586
Shares redeemed .................... (80,658) (831,360)
----------------------------------------
Net increase ....................... 1,251,108 $ 12,768,226
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 166,483 $ 1,833,829
Shares issued resulting from
reinvestment of dividends
and distributions ................ 4,237 46,004
----------------------------------------
Total issued ....................... 170,720 1,879,833
----------------------------------------
Automatic conversion of shares ..... (13,269) (138,457)
Shares redeemed .................... (104,024) (1,170,667)
----------------------------------------
Total redeemed ..................... (117,293) (1,309,124)
----------------------------------------
Net increase ....................... 53,427 $ 570,709
========================================
- --------------------------------------------------------------------------------
Investor B Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 388,442 $ 3,937,741
Shares issued resulting from
reinvestment of dividends
and distributions ................ 404 4,095
----------------------------------------
Total issued ....................... 388,846 3,941,836
----------------------------------------
Automatic conversion of shares ..... (23,698) (244,503)
Shares redeemed .................... (14,427) (147,014)
----------------------------------------
Total redeemed ..................... (38,125) (391,517)
----------------------------------------
Net increase ....................... 350,721 $ 3,550,319
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor C Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 4,983,356 $ 55,715,772
Shares issued resulting from
reinvestment of dividends
and distributions ................ 81,798 890,142
----------------------------------------
Total issued ....................... 5,065,154 56,605,914
Shares redeemed .................... (1,062,660) (12,020,302)
----------------------------------------
Net increase ....................... 4,002,494 $ 44,585,612
========================================
- --------------------------------------------------------------------------------
Investor C Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 5,609,187 $ 57,065,091
Shares issued resulting from
reinvestment of dividends
and distributions ................ 5,690 57,588
----------------------------------------
Total issued ....................... 5,614,877 57,122,679
Shares redeemed .................... (244,995) (2,522,295)
----------------------------------------
Net increase ....................... 5,369,882 $ 54,600,384
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
56 FDP SERIES, INC. MAY 31, 2007
Notes to Financial Statements (continued)
Franklin Templeton Total Return FDP Fund
Net increase in net assets derived from capital share transactions was
$84,282,710 and $90,560,266 for the year ended May 31, 2007 and the period July
27, 2005 to May 31, 2006, respectively.
Transactions in capital shares for each class were as follows:
- --------------------------------------------------------------------------------
Franklin Templeton Total Return FDP Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 182,552 $ 1,796,992
Shares issued resulting from
reinvestment of dividends ........ 7,311 72,138
----------------------------------------
Total issued ....................... 189,863 1,869,130
Shares redeemed .................... (28,367) (278,882)
----------------------------------------
Net increase ....................... 161,496 $ 1,590,248
========================================
- --------------------------------------------------------------------------------
Institutional Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 403,419 $ 4,018,028
Shares issued resulting from
reinvestment of dividends
and distributions ................ 9,289 91,471
----------------------------------------
Total issued ....................... 412,708 4,109,499
Shares redeemed .................... (311,355) (3,028,546)
----------------------------------------
Net increase ....................... 101,353 $ 1,080,953
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 1,914,096 $ 18,825,267
Automatic conversion of shares ..... 670 6,503
Shares issued resulting from
reinvestment of dividends ........ 93,930 926,302
----------------------------------------
Total issued ....................... 2,008,696 19,758,072
Shares redeemed .................... (379,755) (3,745,345)
----------------------------------------
Net increase ....................... 1,628,941 $ 16,012,727
========================================
- --------------------------------------------------------------------------------
Investor A Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 1,751,159 $ 17,233,532
Automatic conversion of shares ..... 131 1,280
Shares issued resulting from
reinvestment of dividends
and distributions ................ 21,886 214,024
----------------------------------------
Total issued ....................... 1,773,176 17,448,836
Shares redeemed .................... (111,030) (1,091,361)
----------------------------------------
Net increase ....................... 1,662,146 $ 16,357,475
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 151,003 $ 1,479,622
Shares issued resulting from
reinvestment of dividends ........ 13,705 135,003
----------------------------------------
Total issued ....................... 164,708 1,614,625
----------------------------------------
Shares redeemed .................... (72,636) (714,197)
Automatic conversion of shares ..... (670) (6,503)
----------------------------------------
Total redeemed ..................... (73,306) (720,700)
----------------------------------------
Net increase ....................... 91,402 $ 893,925
========================================
- --------------------------------------------------------------------------------
Investor B Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 365,647 $ 3,600,056
Shares issued resulting from
reinvestment of dividends
and distributions ................ 4,043 39,541
----------------------------------------
Total issued ....................... 369,690 3,639,597
----------------------------------------
Shares redeemed .................... (17,724) (174,174)
Automatic conversion of shares ..... (131) (1,280)
----------------------------------------
Total redeemed ..................... (17,855) (175,454)
----------------------------------------
Net increase ....................... 351,835 $ 3,464,143
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
- --------------------------------------------------------------------------------
Investor C Shares for the Year Dollar
Ended May 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 7,689,235 $ 75,622,749
Shares issued resulting from
reinvestment of dividends ........ 340,367 3,356,217
----------------------------------------
Total issued ....................... 8,029,602 78,978,966
Shares redeemed .................... (1,339,333) (13,193,156)
----------------------------------------
Net increase ....................... 6,690,269 $ 65,785,810
========================================
- --------------------------------------------------------------------------------
Investor C Shares for the
Period July 27, 2005+ to Dollar
May 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 7,350,039 $ 72,342,049
Shares issued resulting from
reinvestment of dividends
and distributions ................ 82,638 808,387
----------------------------------------
Total issued ....................... 7,432,677 73,150,436
Shares redeemed .................... (357,367) (3,492,741)
----------------------------------------
Net increase ....................... 7,075,310 $ 69,657,695
========================================
+ Prior to July 27, 2005 (commencement of operations) the Fund issued 625
shares to FAM for $6,250.
7. Commitments:
At May 31, 2007, 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 $148,000 and $482,000,
respectively.
8. Short-Term Borrowings:
Effective November 22, 2006, the Corporation, on behalf of the Funds, along with
certain other funds managed by the Manager and its affiliates, is party to a
$500,000,000 credit
FDP SERIES, INC. MAY 31, 2007 57
Notes to Financial Statements (continued)
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.
The Corporation pays a commitment fee of .06% per annum based on the
Corporation's pro rata share of the unused portion of the credit agreement.
Amounts borrowed under the credit agreement bear interest at a rate equal to, at
each fund's election, the federal funds rate plus .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, 2007.
9. Distributions to Shareholders:
MFS Research International FDP Fund
The tax character of distributions paid during the year ended May 31, 2007 was
as follows:
- --------------------------------------------------------------------------------
5/31/2007
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income ............................................. $ 3,373,895
Net long term capital gains ................................. $ 174,289
------------
Total taxable distributions ................................... $ 3,548,184
============
As of May 31, 2007, the components of accumulated earnings on a tax basis were
as follows:
- --------------------------------------------------------------------------------
Undistributed ordinary income -- net ........................ $ 6,149,081
Undistributed long-term capital gains -- net ................ 3,055,589
------------
Total undistributed earnings -- net ......................... 9,204,670
Capital loss carryforward ................................... --
Unrealized gains -- net ..................................... 23,684,354*
------------
Total accumulated earnings -- net ........................... $ 32,889,024
============
* 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
realization for tax purposes of unrealized gains (losses) on certain
foreign currency contracts.
Marsico Growth FDP Fund
As of May 31, 2007, the components of accumulated earnings on a tax basis were
as follows:
- --------------------------------------------------------------------------------
Undistributed ordinary income -- net ........................ --
Undistributed long-term capital gains -- net ................ --
------------
Total undistributed earnings -- net ......................... --
Capital loss carryforward ................................... $ (800,231)*
Unrealized gains -- net ..................................... 18,745,014**
------------
Total accumulated earnings -- net ........................... $ 17,944,783
============
* On May 31, 2007, the Fund had a net capital loss carryforward of $800,231,
all of which expires in 2015. This amount will be available to offset like
amounts of any future taxable 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.
Van Kampen Value FDP Fund
The tax character of distributions paid during the year ended May 31, 2007 and
the period ended May 31, 2006 was as follows:
- --------------------------------------------------------------------------------
5/31/2007 5/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $1,344,126 $103,611
------------------------
Total taxable distributions $1,344,126 $103,611
========================
As of May 31, 2007, the components of accumulated earnings on a tax basis were
as follows:
- --------------------------------------------------------------------------------
Undistributed ordinary income -- net .......................... $ 1,574,398
------------
Undistributed long-term capital gains -- net .................. 774,824
Total undistributed earnings -- net ........................... 2,349,222
Capital loss carryforward ..................................... --
Unrealized gains -- net ....................................... 19,544,078*
------------
Total accumulated earnings -- net ............................. $ 21,893,300
============
* The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales.
Franklin Templeton Total Return FDP Fund
The tax character of distributions paid during the year ended May 31, 2007 and
the period ended May 31, 2006 was as follows:
- --------------------------------------------------------------------------------
5/31/2007 5/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $4,887,026 $1,340,358
--------------------------
Total taxable distributions $4,887,026 $1,340,358
==========================
As of May 31, 2007, the components of accumulated earnings on a tax basis were
as follows:
Undistributed ordinary income -- net .......................... $ 624,184
------------
Undistributed long-term capital gains -- net .................. --
Total undistributed earnings -- net ........................... 624,184
Capital loss carryforward ..................................... --
Unrealized losses -- net ...................................... (165,551)*
------------
Total accumulated earnings -- net ............................. $ 458,633
============
* The difference between book-basis and tax-basis net unrealized losses is
attributable primarily to the tax deferral of losses on wash sales, the
difference between book and tax amortization methods for premiums and
discounts on fixed income securities, the realization for tax purposes of
unrealized gains (losses) on certain foreign currency contracts, the
deferral of post-October capital losses for tax purposes and other
book/tax temporary differences.
58 FDP SERIES, INC. MAY 31, 2007
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
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, 2007, and the
related statements of operations, the statements of changes in net assets, and
the financial highlights for the year 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 respective financial statements
and financial highlights of the Corporation as of, and 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 statements and 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, 2007, by correspondence with the custodian and
brokers; where replies were not received from brokers, 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, 2007, the results of
their operations, the changes in their net assets, and their financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
July 20, 2007
Change in Funds' Independent Registered Public Accounting Firm (Unaudited)
On August 28, 2006 Ernst & Young llp ("E&Y") resigned as the Independent
Registered Public Accounting Firm of FDP Series, Inc. (the "Funds") because it
was determined that E&Y is not independent of BlackRock, Inc. and the Funds.
E&Y's reports on the financial statements of the Funds for the prior two fiscal
years did not contain an adverse opinion or a disclaimer of opinion and were not
qualified or modified as to uncertainty, audit scope or accounting principles.
In connection with its audits for the two most recent fiscal years and through
August 28, 2006 (1) there were no disagreements with E&Y on any matter of
accounting principle or practice, financial statement disclosure or auditing
scope or procedure, whereby such disagreements, if not resolved to the
satisfaction of E&Y, would have caused them to make reference to the subject
matter of the disagreements in connection with their report on the financial
statements for such years; and (2) there have been no reportable events (as
defined in item 304(a)(1)(v) of Regulation S-K).
The Audit Committee of the Funds' Board of Directors approved the engagement of
Deloitte & Touche llp as the Funds' Independent Registered Public Accounting
Firm for the fiscal year ended May 31, 2007.
FDP SERIES, INC. MAY 31, 2007 59
Officers and Directors
Number of
Funds and
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name Address & Age Funds Served Principal Occupation(s) During Past 5 Years Director Director
====================================================================================================================================
Interested Director
- ------------------------------------------------------------------------------------------------------------------------------------
Robert C. P.O. Box 9011 Fund 2005 to Vice Chairman and Director of BlackRock, Inc., 122 Funds None
Doll, Jr.* Princeton, NJ President present Global Chief Investment Officer for Equities, 168 Portfolios
08543-9011 and Chairman of the BlackRock Retail Operating
Age: 52 Director Committee, and member of the BlackRock Executive
Committee since 2006; President of the funds
advised by Merrill Lynch Investment Managers, L.P.
("MLIM") and its affiliates ("MLIM/FAM-advised
funds") from 2005 to 2006 and Chief Investment
Officer thereof from 2001 to 2006; President of
MLIM and Fund Asset Management, L.P. ("FAM") from
2001 to 2006; Co-Head (Americas Region) thereof
from 2000 to 2001 and Senior Vice President from
1999 to 2001; President and Director of Princeton
Services, Inc. ("Princeton Services") and
President of Princeton Administrators, L.P.
("Princeton Administrators") from 2001 to 2006;
Chief Investment Officer of OppenheimerFunds, Inc.
in 1999 and Executive Vice President thereof from
1991 to 1999.
------------------------------------------------------------------------------------------------------------------------
* Mr. Doll is a director, trustee or member of an advisory board of certain other investment companies for which
BlackRock Advisors, LLC and its affiliates act as investment adviser. Mr. Doll is an "interested person," as
defined in the Investment Company Act, of the Fund based on his 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.
As Fund President, Mr. Doll serves at the pleasure of the Board of Directors.
====================================================================================================================================
Independent Directors*
- ------------------------------------------------------------------------------------------------------------------------------------
David O. P.O. Box 9095 Director 2005 to Professor of Finance and Economics at the Columbia 17 Funds None
Beim** Princeton, NJ present University Graduate School of Business since 1991; 24 Portfolios
08543-9095 Chairman of Outward Bound USA from 1997 to
Age: 66 Chairman of Wave Hill, Inc., from 1990 to 2006;
Trustee of Phillips Exeter Academy from 2002 to
present.
- ------------------------------------------------------------------------------------------------------------------------------------
James T. P.O. Box 9095 Director 2005 to Chief Financial Officer of JPMorgan & Co., Inc. 17 Funds None
Flynn Princeton, NJ present from 1990 to 1995 and an employee of JPMorgan in 24 Portfolios
08543-9095 various capacities from 1967 to 1995.
Age: 67
- ------------------------------------------------------------------------------------------------------------------------------------
W. Carl P.O. Box 9095 Director 2005 to Deputy Dean for Academic Affairs, Harvard Business 17 Funds None
Kester Princeton, NJ present School since 2006; Mizuho Financial Group, 24 Portfolios
08543-9095 Professor of Finance, Harvard Business School;
Age: 55 Unit Head, Finance in 2005 to 2006; Senior
Associate Dean and Chairman of the MBA Program of
Harvard Business School, 1999 to 2005, Member of
the faculty of Harvard Business School since 1981.
Independent Consultant since 1978.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen P. P.O. Box 9095 Director 2005 to Partner of Robards & Company LLC, a financial 17 Funds AtriCure, Inc.
Robards*** Princeton, NJ present advisory firm since 1987; formerly an investment 24 Portfolios (medical
08543-9095 banker with Morgan Stanley for more than ten devices)
Age: 57 years; Director of Enable Medical Corp. from 1996
to 2005; Director of AtriCure, Inc., since 2000;
Director of the Cooke Center for Learning and
Development, a not-for-profit organization, since
1987.
- ------------------------------------------------------------------------------------------------------------------------------------
* Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.
** Chairman of the Audit Committee.
*** Chair of the Board of Directors.
60 FDP SERIES, INC. MAY 31, 2007
Officers and Directors (concluded)
Position(s) Length of
Held with Time
Name Address & Age Funds Served Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Fund Officers*
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. P.O. Box 9011 Vice 2005 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
Burke Princeton, NJ President present Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. ("FAM")
08543-9011 and in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and Treasurer
Age: 46 Treasurer thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990 to 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen P.O. Box 9011 Fund Chief 2007 to Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
Clark Princeton, NJ Compliance present BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
08543-9011 Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
Age: 42 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
to 2001; and Branch Chief, Division of Investment Management and Office of
Compliance Inspections and Examinations, U.S. Securities and Exchange
Commission, from 1993 to 1998.
- ------------------------------------------------------------------------------------------------------------------------------------
Alice A. P.O. Box 9011 Secretary 2005 to Director of BlackRock, Inc. since 2006; Director (Legal Advisory) of MLIM from
Pellegrino Princeton, NJ present 2002 to 2006; Vice President of MLIM from 1999 to 2002; Attorney associated with
08543-9011 MLIM from 1997 to 1999; Secretary of MLIM, FAM, FAM Distributors, Inc. and
Age: 47 Princeton Services from 2004 to 2006.
------------------------------------------------------------------------------------------------------------------------
* Officers of the Funds 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 1-800-441-7762.
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3661
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
BlackRock Funds
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 Web sites.
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, 2007 61
BlackRock Funds (concluded)
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available on
the Funds' Web site 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 Advisers, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment
advisers, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock Web site at http://www.blackrock.com/edelivery
2) Select eDelivery under the More Information section
3) Log into your account
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
The Funds have delegated proxy voting responsibilities to BlackRock and its
affiliates, subject to the general oversight of the Corporation's Board of
Directors. A description of the policies and procedures that BlackRock and its
affiliates use to determine how to vote proxies relating to portfolio securities
is available without charge, upon request, on our Web site at www.blackrock.com,
by calling (800) 441-7762, or on the Web site of the Securities and Exchange
Commission (the"Commission") at http://www.sec.gov.
Availability of Proxy Voting Record
Information on how proxies relating to the Funds' voting securities were voted
(if any) by BlackRock during the most recent 12-month period ended June 30 is
available, upon request and without charge, on our Web site at
www.blackrock.com, by calling (800) 441-7762 or on the Web site of the
Commission at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Funds file their complete schedules of portfolio holdings for the first and
third quarters of their fiscal year with the Commission on Form N-Q. The Funds'
Forms N-Q are available on the Commission's Web site at http://www.sec.gov and
may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information regarding 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, without charge, by calling (800) 441-7762.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 8:00 AM - 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.
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.
62 FDP SERIES, INC. MAY 31, 2007
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 Aurora Portfolio
BlackRock Asset Allocation Portfolio+
BlackRock Balanced Capital Fund+
BlackRock Basic Value Fund
BlackRock Capital Appreciation Portfolio
BlackRock Developing Capital Markets Fund
BlackRock Equity Dividend Fund
BlackRock EuroFund
BlackRock Focus Twenty Fund
BlackRock Focus Value Fund
BlackRock Fundamental Growth Fund
BlackRock Global Allocation Fund+
BlackRock Global Dynamic Equity 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 Healthcare Fund
BlackRock Health Sciences Opportunities Portfolio
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio*
BlackRock International Value Fund
BlackRock Investment Trust
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 Bond Fund
BlackRock Commodity Strategies Fund
BlackRock Enhanced Income Portfolio
BlackRock GNMA Portfolio
BlackRock Government Income Portfolio
BlackRock High Income Fund
BlackRock High Yield Bond Portfolio
BlackRock Inflation Protected Bond Portfolio
BlackRock Intermediate Bond Portfolio II
BlackRock Intermediate Government Bond Portfolio
BlackRock International Bond Portfolio
BlackRock Low Duration Bond Portfolio
BlackRock Managed Income Portfolio
BlackRock Short-Term Bond Fund
BlackRock Total Return Portfolio
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.
FDP SERIES, INC. MAY 31, 2007 63
This report is transmitted to shareholders only. It 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.
FDP Series, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
BLACKROCK
#FDPS-5/07
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial officer
and principal accounting officer, or persons performing similar
functions. 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 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: (1) David
O. Beim, (2) W. Carl Kester, (3) James T. Flynn and (4) Karen P.
Robards.
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 for the past 13 years.
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 the member of the Audit Committees of one
publicly held company and a non-profit organization.
Item 4 - Principal Accountant Fees and Services
Note: The Fund changed auditors effective August, 28, 2006. Prior to
that date, Ernst & Young LLP provided services as the Fund's
independent registered public accountant.
MFS Research International FDP Fund
(a) Audit Fees - Fiscal Year Ending May 31, 2007 - $32,000
Fiscal Year Ending May 31, 2006 - $34,750
(b) Audit-Related Fees - Fiscal Year Ending May 31, 2007 - $0
Fiscal Year Ending May 31, 2006 - $0
(c) Tax Fees - Fiscal Year Ending May 31, 2007 - $6,100
Fiscal Year Ending May 31, 2006 - $6,000
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending May 31, 2007 - $0
Fiscal Year Ending May 31, 2006 - $0
Marsico Growth FDP Fund
(a) Audit Fees - Fiscal Year Ending May 31, 2007 - $32,000
Fiscal Year Ending May 31, 2006 - $34,750
(b) Audit-Related Fees - Fiscal Year Ending May 31, 2007 - $0
Fiscal Year Ending May 31, 2006 - $0
(c) Tax Fees - Fiscal Year Ending May 31, 2007 - $6,100
Fiscal Year Ending May 31, 2006 - $6,000
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending May 31, 2007 - $0
Fiscal Year Ending May 31, 2006 - $0
Van Kampen Value FDP Fund
(a) Audit Fees - Fiscal Year Ending May 31, 2007 - $32,000
Fiscal Year Ending May 31, 2006 - $34,750
(b) Audit-Related Fees - Fiscal Year Ending May 31, 2007 - $0
Fiscal Year Ending May 31, 2006 - $0
(c) Tax Fees - Fiscal Year Ending May 31, 2007 - $6,100
Fiscal Year Ending May 31, 2006 - $6,000
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending May 31, 2007 - $0
Fiscal Year Ending May 31, 2006 - $0
Franklin Templeton Total Return FDP Fund
(a) Audit Fees - Fiscal Year Ending May 31, 2007 - $32,000
Fiscal Year Ending May 31, 2006 - $34,750
(b) Audit-Related Fees - Fiscal Year Ending May 31, 2007 - $0
Fiscal Year Ending May 31, 2006 - $0
(c) Tax Fees - Fiscal Year Ending May 31, 2007 - $6,100
Fiscal Year Ending May 31, 2006 - $6,000
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending May 31, 2007 - $0
Fiscal Year Ending May 31, 2006 - $0
(e)(1) 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"). However, such services will only be deemed
pre-approved provided that any individual project does not exceed
$5,000 attributable to the registrant or $50,000 for all of the
registrants the Committee oversees. 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.
(e)(2) 0%
(f) Not Applicable
(g) MFS Research International FDP Fund
Fiscal Year Ended May 31, 2007 - $2,985,417
Fiscal Year Ended May 31, 2006 - $3,124,717
Marsico Growth FDP Fund
Fiscal Year Ended May 31, 2007 - $2,985,417
Fiscal Year Ended May 31, 2006 - $3,124,717
Van Kampen Value FDP Fund
Fiscal Year Ended May 31, 2007 - $2,985,417
Fiscal Year Ended May 31, 2006 - $3,124,717
Franklin Templeton Total Return FDP Fund
Fiscal Year Ended May 31, 2007 - $2,985,417
Fiscal Year Ended May 31, 2006 - $3,124,717
(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 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) - $1,739,500, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - The registrant's Schedule of Investments is
included as part of the Report to Stockholders filed under Item 1 of
this form.
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 Committee will consider nominees to the Board
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 and 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
(17 CFR 270.30a-3(d)) 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/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
FDP Series, Inc.
Date: July 24, 2007
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/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
FDP Series, Inc.
Date: July 24, 2007
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke,
Chief Financial Officer of
FDP Series, Inc.
Date: July 24, 2007