| BMC FUND, INC. | |||||||
| SCHEDULE OF INVESTMENTS (Unaudited) | |||||||
| January 31, 2021 | |||||||
| Coupon | Percent | |||||||||||||||||||||||||
| Interest | Maturity | Face | Market | of Net | ||||||||||||||||||||||
| Debt Issuer | Rate | Date | Amount | Cost | Value | Assets | ||||||||||||||||||||
| FIXED INCOME: | ||||||||||||||||||||||||||
| CORPORATE BONDS: | ||||||||||||||||||||||||||
| BRINKER INTL INC | 3.875 | % | 5/15/2023 | 100,000 | 99,243 | 100,625 | ||||||||||||||||||||
| INGLES MKTS INC | 5.750 | % | 6/15/2023 | 112,000 | 82,180 | 82,820 | ||||||||||||||||||||
| VOYA FINANCIAL INC | 5.650 | % | 5/15/2053 | 150,000 | 150,000 | 159,000 | ||||||||||||||||||||
| LINCOLN NATL CORP IND | 4.997 | % | 5/17/2066 | 125,000 | 94,834 | 105,469 | ||||||||||||||||||||
| FPL GROUP CAP INC | 6.350 | % | 10/1/2066 | 586,000 | 562,754 | 527,400 | ||||||||||||||||||||
| PP&L CAP FUNDING FLT RATE | 5.051 | % | 3/30/2067 | 500,000 | 500,000 | 463,259 | ||||||||||||||||||||
| WISCONSIN ENERGY | 4.728 | % | 5/15/2067 | 250,000 | 241,416 | 202,500 | ||||||||||||||||||||
| TRANSCANADA PIPELINES LTD | 6.350 | % | 5/15/2067 | 250,000 | 198,887 | 225,292 | ||||||||||||||||||||
| JP MORGAN CHASE CAP XXIII | 5 | 3.700 | % | 5/15/2077 | 250,000 | 232,967 | 207,500 | |||||||||||||||||||
| BUCKEYE PARTNERS LP | 6.375 | % | 1/22/2078 | 450,000 | 336,840 | 350,048 | ||||||||||||||||||||
| LEHMAN BROTHERS HLDGS NIKKEI INDEX | 1,2,3 | 0.000 | % | 9/29/2008 | 3,000,000 | 1,615,505 | - | |||||||||||||||||||
| LEHMAN BROTHERS HLDGS EAFE INDEX | 1,2,3 | 0.000 | % | 11/15/2008 | 1,000,000 | 530,228 | - | |||||||||||||||||||
| LEHMAN BROTHERS HLDGS MEDIUM TERM NOTE | 1,2,3 | 0.000 | % | 3/15/2011 | 2,500,000 | 1,345,057 | - | |||||||||||||||||||
| 9,273,000 | 5,989,911 | 2,423,913 | 2.29 | % | ||||||||||||||||||||||
| MUNICIPAL BONDS: | ||||||||||||||||||||||||||
| VIRGIN ISLANDS PUB FIN AUTH | 6.625 | % | 10/1/2029 | 100,000 | 87,737 | 100,485 | ||||||||||||||||||||
| VIRGIN ISLANDS PUB FIN AUTH | 6.750 | % | 10/1/2037 | 1,200,000 | 1,004,027 | 1,206,444 | ||||||||||||||||||||
| 1,300,000 | 1,091,764 | 1,306,929 | 1.23 | % | ||||||||||||||||||||||
| TOTAL INVESTMENTS IN FIXED INCOME | $ | 10,573,000 | $ | 7,081,675 | $ | 3,730,842 | 3.52 | % | ||||||||||||||||||
| BMC FUND, INC. | ||||||
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) | ||||||
| January 31, 2021 | ||||||
| Percent | ||||||||||||||||
| Shares | Market | of Net | ||||||||||||||
| Company Name | Held | Cost | Value | Assets | ||||||||||||
| MUTUAL FUNDS: | ||||||||||||||||
| BOND MUTUAL FUNDS: | ||||||||||||||||
| FPA NEW INCOME INC COM | 10,000.00 | 100,000 | 100,300 | |||||||||||||
| DOUBLELINE TOTAL RETURN BOND I | 129,763.65 | 1,439,365 | 1,389,769 | |||||||||||||
| PIMCO FDS INCOME FUND INSTL | 128,944.70 | 1,500,000 | 1,561,520 | |||||||||||||
| TOTAL BOND MUTUAL FUNDS | 3,039,365 | 3,051,589 | 2.88 | % | ||||||||||||
| STOCK MUTUAL FUNDS: | ||||||||||||||||
| INTERNATIONAL EQUITIES | ||||||||||||||||
| Diversified Emerging Markets | ||||||||||||||||
| PZENA EMERGING MARKETS VALUE FUND INST | 47,531.27 | 500,000 | 530,449 | |||||||||||||
| 500,000 | 530,449 | 0.50 | % | |||||||||||||
| TOTAL INTERNATIONAL EQUITIES | 500,000 | 530,449 | 0.50 | % | ||||||||||||
| SPECIALTY FUNDS | ||||||||||||||||
| Conservative Allocation | ||||||||||||||||
| VANGUARD WELLESLEY INCOME INV | 20,045.04 | 422,892 | 560,660 | 0.53 | % | |||||||||||
| Diversified Emerging Markets | ||||||||||||||||
| VANGUARD EMERGING MARKETS SEL STK INV SHRS | 22,255.64 | 500,000 | 607,134 | 0.57 | % | |||||||||||
| Large Cap Blend | ||||||||||||||||
| COOK & BYNUM FUND | 65,145.23 | 1,000,000 | 780,440 | 0.74 | % | |||||||||||
| Mid Cap Blend | ||||||||||||||||
| AKRE FOCUS FUND INSTL | 5,590.87 | 128,758 | 292,738 | 0.28 | % | |||||||||||
| BMC FUND, INC. | ||||
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) | ||||
| January 31, 2021 |
| Percent | ||||||||||||||||
| Shares | Market | of Net | ||||||||||||||
| Company Name | Held | Cost | Value | Assets | ||||||||||||
| MUTUAL FUNDS: | ||||||||||||||||
| Moderate Allocation | ||||||||||||||||
| FPA CRESCENT PORTFOLIO | 49,409.16 | 1,525,303 | 1,773,787 | 1.67 | % | |||||||||||
| Precious Metals | ||||||||||||||||
| ISHARES SILVER TRUST | 3 | 23,802.00 | 399,993 | 594,812 | ||||||||||||
| SPDR GOLD SHARES | 3 | 5,000.00 | 486,825 | 863,050 | ||||||||||||
| VANECK VECTORS GOLD MINERS | 10,832.00 | 277,635 | 373,813 | |||||||||||||
| 1,164,453 | 1,831,675 | 1.73 | % | |||||||||||||
| Utilities | ||||||||||||||||
| UTIL SELECT SECTOR SPDR ET | 11,000.00 | 357,288 | 683,650 | 0.65 | % | |||||||||||
| TOTAL SPECIALTY FUNDS | 5,098,694 | 6,530,084 | 6.16 | % | ||||||||||||
| TOTAL STOCK MUTUAL FUNDS | 5,598,694 | 7,060,533 | 6.66 | % | ||||||||||||
| TOTAL INVESTMENTS IN MUTUAL FUNDS | $ | 8,638,059 | $ | 10,112,122 | 9.54 | % | ||||||||||
| BMC FUND, INC. | ||||
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) | ||||
| January 31, 2021 | ||||
| Market | Percent of | |||||||||||||
| Company Name | Cost | Value | Net Assets | |||||||||||
| OTHER INVESTMENTS: | ||||||||||||||
| LIMITED PARTNERSHIPS: | ||||||||||||||
| BAM CREDIT OPPORTUNITIES FUND | 2, 3 | 1,000,000 | 1,000,000 | |||||||||||
| ELLIOTT ASSOCIATES LP CL B | 2, 3 | 3,000,000 | 7,472,003 | |||||||||||
| GRAHAM INSTITUTIONAL PARTNERS LP | 2, 3 | 2,365,123 | 2,253,281 | |||||||||||
| GREENLIGHT MASTERS QUALIFIED LP | 2, 3 | 500,000 | 2,345,804 | |||||||||||
| INFINITY PREMIER FUND, LP | 2, 3 | 1,500,000 | 2,656,296 | |||||||||||
| LITESPEED PARTNERS, LP | 2, 3 | 664,400 | 1,462,015 | |||||||||||
| MORROCROFT SPECIAL OPPORTUNITY FUND II, LP | 2, 3 | - | 55,589 | |||||||||||
| MUDRICK DISTRESSED OPPORTUNITY DRAWDOWN FUND II, L.P. | 2, 3 | 3,496,363 | 4,059,624 | |||||||||||
| OAKTREE ENHANCED INCOME FUND II, LP | 2, 3 | 4,608 | 61,727 | |||||||||||
| OLD WELL EMERGING MARKETS FUND | 2, 3 | 1,000,000 | 1,485,895 | |||||||||||
| PRIVET FUND LP | 2, 3 | 1,000,000 | 1,317,480 | |||||||||||
| SEGRA RESOURCE ONSHORE PARTNERS, LP | 2, 3 | 250,000 | 378,445 | |||||||||||
| SJC ONSHORE DIRECT LENDING FUND IV - 5 YEAR, L.P. | 2, 3 | 1,011,305 | 1,033,469 | |||||||||||
| STARK INVESTMENTS LP | 2, 3 | 22,609 | 60,235 | |||||||||||
| VIRGO SOCIETAS III (ONSHORE) LP | 2, 3 | 970,119 | 1,435,826 | |||||||||||
| WALNUT INVESTMENT PARTNERS | 2, 3 | 235,567 | - | |||||||||||
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A1 | 2, 3 | 1,300,000 | 1,515,407 | |||||||||||
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A34 | 2, 3 | 50,000 | 51,499 | |||||||||||
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A35 | 2, 3 | 50,000 | 50,375 | |||||||||||
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A36 | 2, 3 | 50,000 | 50,639 | |||||||||||
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A37 | 2, 3 | 50,000 | 50,417 | |||||||||||
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A45 | 2, 3 | 250,000 | 261,488 | |||||||||||
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A46 | 2, 3 | 250,000 | 268,103 | |||||||||||
| TOTAL LIMITED PARTNERSHIPS | 19,020,094 | 29,325,617 | 27.68 | % | ||||||||||
| TOTAL OTHER INVESTMENTS | $ | 19,020,094 | $ | 29,325,617 | 27.68 | % | ||||||||
| BMC FUND, INC. | |||||||
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) | |||||||
| January 31, 2021 | |||||||
| Percent | |||||||||||||||||||
| Sectors and | Shares | Market | of Net | ||||||||||||||||
| Industries | Held | Company Name | Cost | Value | Assets | ||||||||||||||
| COMMON STOCKS: | |||||||||||||||||||
| COMMUNICATION SERVICES | |||||||||||||||||||
| Communication Services | 12,000.00 | AT&T CORP COM | 348,803 | 343,560 | |||||||||||||||
| 4,500.00 | BCE INC COM | 191,785 | 190,800 | ||||||||||||||||
| 2,000.00 | SK TELECOM LTD SPONSORED A | 27,904 | 48,320 | ||||||||||||||||
| 10,000.00 | TELEFONICA BRASIL S.A. | 144,120 | 82,600 | ||||||||||||||||
| 7,062.00 | TELEFONICA S A SPONSORED ADR | 110,736 | 30,649 | ||||||||||||||||
| 6,500.00 | VODAFONE GROUP | 169,802 | 111,475 | ||||||||||||||||
| 993,150 | 807,404 | 0.76 | % | ||||||||||||||||
| Media and Entertainment | 1,151.00 | ALPHABET INC CAP STK CL C | 705,824 | 2,112,937 | |||||||||||||||
| 700.00 | FACEBOOK INC CL A | 117,131 | 180,831 | ||||||||||||||||
| 250.00 | GRAHAM HOLDINGS CO COM CL B | 102,330 | 142,028 | ||||||||||||||||
| 2,075.00 | TWITTER INC COM | 66,391 | 104,850 | ||||||||||||||||
| 991,676 | 2,540,646 | 2.40 | % | ||||||||||||||||
| TOTAL COMMUNICATION SERVICES | 1,984,826 | 3,348,050 | 3.16 | % | |||||||||||||||
| CONSUMER DISCRETIONARY | |||||||||||||||||||
| Consumer Discretionary | 500.00 | WHIRLPOOL CORP COM | 55,842 | 92,545 | |||||||||||||||
| 55,842 | 92,545 | 0.09 | % | ||||||||||||||||
| Hotels, Restaurants & Leisure | 1,500.00 | CAESARS ENTERTAINMENT COM | 121,293 | 105,585 | |||||||||||||||
| 1,000.00 | CEDAR FAIR, LP COM | 25,108 | 40,100 | ||||||||||||||||
| 1,000.00 | SIX FLAGS ENTMT CORP N COM | 19,613 | 34,200 | ||||||||||||||||
| 2,980.00 | STARBUCKS CORPORATION | 179,954 | 288,494 | ||||||||||||||||
| 345,968 | 468,379 | 0.44 | % | ||||||||||||||||
| Media & Entertainment | 1,330.00 | THE WALT DISNEY COMPANY | 145,582 | 223,666 | |||||||||||||||
| 145,582 | 223,666 | 0.21 | % | ||||||||||||||||
| Retailing | 5,000.00 | QURATE RETAIL INC COM SER | 51,275 | 63,000 | |||||||||||||||
| 51,275 | 63,000 | 0.06 | % | ||||||||||||||||
| Specialty Retail | 500.00 | GENUINE PARTS CO COM | 47,272 | 46,940 | |||||||||||||||
| 3,185.00 | IAA, INC. | 96,587 | 181,991 | ||||||||||||||||
| 500.00 | ULTA BEAUTY INC COM | 64,330 | 139,880 | ||||||||||||||||
| 208,189 | 368,811 | 0.35 | % | ||||||||||||||||
| TOTAL CONSUMER DISCRETIONARY | 806,856 | 1,216,401 | 1.15 | % | |||||||||||||||
| CONSUMER STAPLES | |||||||||||||||||||
| Discount Stores | 900.00 | DOLLAR GEN CORP COM | 63,635 | 175,149 | |||||||||||||||
| 10,000.00 | DOLLAR TREE INC COM | 3 | 786,251 | 1,016,600 | |||||||||||||||
| 849,886 | 1,191,749 | 1.12 | % | ||||||||||||||||
| Food & Staples Retailing | 2,500.00 | KROGER CO COM | 78,875 | 86,250 | |||||||||||||||
| 500.00 | WAL-MART STORES INC COM | 58,775 | 70,245 | ||||||||||||||||
| 137,650 | 156,495 | 0.15 | % | ||||||||||||||||
| BMC FUND, INC. | |||||||
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) | |||||||
| January 31, 2021 | |||||||
| Percent | ||||||||||||||||||
| Sectors and | Shares | Market | of Net | |||||||||||||||
| Industries | Held | Company Name | Cost | Value | Assets | |||||||||||||
| COMMON STOCKS: | ||||||||||||||||||
| Food, Beverage & Tobacco | 48,000.00 | ALTRIA GROUP INC COM | 2,056,635 | 1,971,840 | ||||||||||||||
| 150,000.00 | AMBEV SA SPONSORED ADR | 323,510 | 418,500 | |||||||||||||||
| 16,000.00 | ANHEUSER-BUSCH INBEV SA/NV | 1,089,597 | 1,003,040 | |||||||||||||||
| 2,000.00 | COCA COLA CO COM | 95,569 | 96,300 | |||||||||||||||
| 12,655.00 | COCA COLA FEMSA S A B SPON | 564,686 | 550,999 | |||||||||||||||
| 1,500.00 | CONSTELLATION BRANDS CL A | 136,079 | 316,395 | |||||||||||||||
| 4,535.00 | FOMENTO ECONOMICO MEXI SPO | 297,332 | 308,607 | |||||||||||||||
| 500.00 | GENERAL MILLS INC COM | 20,240 | 29,050 | |||||||||||||||
| 8,170.00 | PHILIP MORRIS INTL COM | 541,112 | 650,740 | |||||||||||||||
| 5,124,760 | 5,345,471 | 5.05 | % | |||||||||||||||
| Household & Personal Products | 2,500.00 | KIMBERLY CLARK CORP COM | 339,817 | 330,250 | ||||||||||||||
| 275.00 | PROCTER & GAMBLE CO COM | 18,418 | 35,258 | |||||||||||||||
| 358,235 | 365,508 | 0.34 | % | |||||||||||||||
| TOTAL CONSUMER STAPLES | 6,470,531 | 7,059,223 | 6.66 | % | ||||||||||||||
| ENERGY | ||||||||||||||||||
| Energy | 2,500.00 | BP PLC SPONSORED ADR | 98,185 | 55,550 | ||||||||||||||
| 2,800.00 | CHEVRON CORP | 296,043 | 238,560 | |||||||||||||||
| 5,404.00 | EXXON MOBIL CORP COM | 319,463 | 242,315 | |||||||||||||||
| 5,800.00 | OCCIDENTAL PETROLEUM COM | 423,411 | 116,348 | |||||||||||||||
| 5,000.00 | PHILLIPS 66 COM | 534,807 | 339,000 | |||||||||||||||
| 1,200.00 | RENEWABLE ENERGY GROUP COM | 104,369 | 107,520 | |||||||||||||||
| 3,000.00 | ROYAL DUTCH SHELL ADR A | 195,460 | 110,670 | |||||||||||||||
| 2,000.00 | ROYAL DUTCH SHELL ADR B | 91,109 | 69,780 | |||||||||||||||
| 3,000.00 | SUNCOR ENERGY INC COM | 95,203 | 50,190 | |||||||||||||||
| 9,000.00 | SUNOCO INC COM | 215,850 | 281,520 | |||||||||||||||
| 8,000.00 | VALERO ENERGY CORP COM STK | 586,371 | 451,440 | |||||||||||||||
| 2,960,271 | 2,062,893 | 1.95 | % | |||||||||||||||
| Natural Resources | 3,500.00 | OASIS MIDSTREAM PARTNERS COM | 64,813 | 49,070 | 0.05 | % | ||||||||||||
| Pipelines | 3,500.00 | DELEK LOGISTICS PARTNERS LP | 103,142 | 134,295 | ||||||||||||||
| 11,999.00 | ENBRIDGE INC | 390,852 | 403,166 | |||||||||||||||
| 12,800.00 | ENERGY TRANSFER PARTNERS LP | 234,907 | 80,256 | |||||||||||||||
| 10,000.00 | ENTERPRISE PRODUCTS PARTNERS LP | 289,870 | 202,300 | |||||||||||||||
| 2,000.00 | GASLOG PARTNERS LP UNIT LT | 49,779 | 6,700 | |||||||||||||||
| 8,000.00 | GOLAR LNG PARTNERS LP | 140,814 | 27,440 | |||||||||||||||
| 5,000.00 | GREEN PLAINS PARTNERS COM | 102,799 | 48,850 | |||||||||||||||
| 3,000.00 | HOLLY ENERGY PARTNERS | 86,820 | 43,680 | |||||||||||||||
| 2,000.00 | KNOT OFFSHORE PARTNERS COM | 41,752 | 32,660 | |||||||||||||||
| 2,000.00 | MAGELLAN MIDSTREAM PARTNERS, LP | 120,307 | 88,920 | |||||||||||||||
| 3,500.00 | MPLX LP COM UNIT REP LTD | 110,582 | 80,885 | |||||||||||||||
| 7,500.00 | USA COMPRESSION PARTNERS COM | 125,969 | 99,600 | |||||||||||||||
| 1,797,593 | 1,248,752 | 1.18 | % | |||||||||||||||
| BMC FUND, INC. | |||||||
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) | |||||||
| January 31, 2021 | |||||||
| Percent | |||||||||||||||||||
| Sectors and | Shares | Market | of Net | ||||||||||||||||
| Industries | Held | Company Name | Cost | Value | Assets | ||||||||||||||
| COMMON STOCKS: | |||||||||||||||||||
| TOTAL ENERGY | 4,822,677 | 3,360,715 | 3.17 | % | |||||||||||||||
| FINANCIALS | |||||||||||||||||||
| Banks | 5,000.00 | BANK OF AMERICA CORP COM | 96,603 | 148,250 | |||||||||||||||
| 3,000.00 | PACWEST BANCORP DEL COM | 148,845 | 90,570 | ||||||||||||||||
| 300.00 | SVB FINANCIAL GROUP COM | 102,165 | 131,334 | ||||||||||||||||
| 7,500.00 | TRUIST FINANCIAL CORP COM | 303,297 | 359,850 | ||||||||||||||||
| 650,910 | 730,004 | 0.69 | % | ||||||||||||||||
| Diversified Financials | 3,500.00 | ALLIANCE BERNSTEIN HLDG UN | 76,525 | 123,725 | |||||||||||||||
| 2,500.00 | ANNALY CAP MGMT INC COM | 41,062 | 20,300 | ||||||||||||||||
| 3,500.00 | BERKSHIRE HATHAWAY INC CL B | 3 | 387,075 | 797,545 | |||||||||||||||
| 23,000.00 | BLACKSTONE GROUP LP COM | 710,384 | 1,545,370 | ||||||||||||||||
| 13,000.00 | BLACKSTONE MTG TR INC COM | 415,992 | 346,580 | ||||||||||||||||
| 13,075.00 | CAPITALA FINANCE CORP COM | 1,363,703 | 203,055 | ||||||||||||||||
| 8,000.00 | CARLYLE GROUP LP COM | 194,150 | 258,160 | ||||||||||||||||
| 800.00 | CME GROUP | 129,728 | 145,392 | ||||||||||||||||
| 5,000.00 | COMPASS DIVERSIFIED HOLDINGS | 68,434 | 103,000 | ||||||||||||||||
| 16,042.00 | GOLUB CAPITAL BDC INC COM | 226,471 | 227,957 | ||||||||||||||||
| 1,000.00 | INTERNCONTINENTAL EXCHANGE COM | 74,845 | 110,350 | ||||||||||||||||
| 1,000.00 | MORGAN STANLEY COM NEW | 49,351 | 67,050 | ||||||||||||||||
| 5,000.00 | NEW YORK MTG TR INC COM PA | 35,055 | 18,650 | ||||||||||||||||
| 150.00 | QURATE RETAIL INC NT CAL 3 | - | 15,009 | ||||||||||||||||
| 12,700.00 | STARWOOD PPTY TR INC COM | 280,188 | 238,252 | ||||||||||||||||
| 4,052,963 | 4,220,395 | 3.98 | % | ||||||||||||||||
| Insurance | 1,500.00 | AON PLC SHS CL A | 121,687 | 304,650 | |||||||||||||||
| 5,000.00 | OLD REP INTL CORP COM | 84,276 | 90,500 | ||||||||||||||||
| 2,500.00 | TRAVELERS COMPANIES COM | 203,356 | 340,750 | ||||||||||||||||
| 5,000.00 | ZURICH INS GROUP LTD SPONS ARD | 148,815 | 199,150 | ||||||||||||||||
| 558,134 | 935,050 | 0.88 | % | ||||||||||||||||
| TOTAL FINANCIALS | 5,262,007 | 5,885,449 | 5.56 | % | |||||||||||||||
| BMC FUND, INC. | |||||||
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) | |||||||
| January 31, 2021 | |||||||
| Percent | |||||||||||||||||||
| Sectors and | Shares | Market | of Net | ||||||||||||||||
| Industries | Held | Company Name | Cost | Value | Assets | ||||||||||||||
| COMMON STOCKS: | |||||||||||||||||||
| HEALTH CARE | |||||||||||||||||||
| Health Care Equipment & Services | 3,000.00 | DAVITA HEALTHCARE PART COM | 3 | 196,152 | 352,110 | ||||||||||||||
| 7,000.00 | HOLOGIC INC COM | 3 | 319,008 | 558,110 | |||||||||||||||
| 3,550.00 | LABORATORY CORP AMER HLDGS | 3 | 420,439 | 812,631 | |||||||||||||||
| 5,500.00 | MCKESSON CORP COM | 718,504 | 959,585 | ||||||||||||||||
| 4,000.00 | QUEST DIAGNOSTICS INC COM | 284,804 | 516,600 | ||||||||||||||||
| 300.00 | QUEST DIAGNOSTICS INC COM | 63,754 | 75,291 | ||||||||||||||||
| 600.00 | STRYKER CORP | 112,156 | 132,606 | ||||||||||||||||
| 2,114,817 | 3,406,933 | 3.22 | % | ||||||||||||||||
| Pharmaceuticals & Biotechnology | 3,500.00 | ABBVIE INC | 310,988 | 358,680 | |||||||||||||||
| 1,000.00 | AMGEN INC COM | 222,683 | 241,430 | ||||||||||||||||
| 10,000.00 | ASTRAZENECA PLC SPONSORED | 235,531 | 506,000 | ||||||||||||||||
| 25,000.00 | BAYER A G SPONSORED ADR | 418,325 | 380,250 | ||||||||||||||||
| 1,500.00 | BRISTOL MYERS SQUIBB CO CO | 86,655 | 92,145 | ||||||||||||||||
| 2,592.00 | ELI LILLY & CO COM | 114,185 | 539,058 | ||||||||||||||||
| 3,500.00 | GILEAD SCIENCES INC COM | 259,707 | 229,600 | ||||||||||||||||
| 500.00 | IQVIA HOLDINGS INC COM | 49,545 | 88,900 | ||||||||||||||||
| 1,500.00 | MERCK & CO INC COM | 111,598 | 115,605 | ||||||||||||||||
| 500.00 | PFIZER INC COM | 11,438 | 17,950 | ||||||||||||||||
| 1,000.00 | SEATTLE GENETICS INC COM | 49,131 | 164,270 | ||||||||||||||||
| 62.00 | VIATRIS INC COM | 630 | 1,053 | ||||||||||||||||
| 1,870,416 | 2,734,941 | 2.58 | % | ||||||||||||||||
| TOTAL HEALTH CARE | 3,985,233 | 6,141,874 | 5.80 | % | |||||||||||||||
| INDUSTRIALS | |||||||||||||||||||
| Capital Goods | 1,500.00 | 3M COMPANY | 222,931 | 263,490 | |||||||||||||||
| 4,000.00 | ABB LTD SPONSORED ADR | 3 | 100,795 | 118,040 | |||||||||||||||
| 1,500.00 | STURM RUGER & CO INC COM | 109,373 | 95,040 | ||||||||||||||||
| 433,099 | 476,570 | 0.45 | % | ||||||||||||||||
| Commercial Services & Supplies | 500.00 | WASTE MGMT INC DEL COM | 17,412 | 55,660 | |||||||||||||||
| 17,412 | 55,660 | 0.05 | % | ||||||||||||||||
| Transportation | 500.00 | EXPEDITORS INTL OF WASHINGTON COM | 44,448 | 44,760 | |||||||||||||||
| 6,000.00 | FORTRESS TRANS INFRST COM | 95,790 | 132,600 | ||||||||||||||||
| 5,000.00 | USD PARTNERS LP COM UT REP | 56,643 | 24,400 | ||||||||||||||||
| 196,881 | 201,760 | 0.19 | % | ||||||||||||||||
| Transportation Infrastructure | 7,500.00 | GRUPO AEROPORTUARIO DE SPO | 230,257 | 349,725 | |||||||||||||||
| 2,500.00 | GRUPO AEROPORTUARIO DE SPO | 271,470 | 391,775 | ||||||||||||||||
| 1,000.00 | GRUPO AEROPUERTO DEL P SPO | 64,309 | 99,790 | ||||||||||||||||
| 566,036 | 841,290 | 0.79 | % | ||||||||||||||||
| BMC FUND, INC. | |||||||
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) | |||||||
| January 31, 2021 | |||||||
| Percent | |||||||||||||||||||
| Sectors and | Shares | Market | of Net | ||||||||||||||||
| Industries | Held | Company Name | Cost | Value | Assets | ||||||||||||||
| COMMON STOCKS: | |||||||||||||||||||
| TOTAL INDUSTRIALS | 1,213,428 | 1,575,280 | 1.49 | % | |||||||||||||||
| INFORMATION TECHNOLOGY | |||||||||||||||||||
| Hardware & Equipment | 10,200.00 | CISCO SYSTEMS INC | 400,934 | 454,716 | |||||||||||||||
| 9,500.00 | CORNING INC COM | 215,855 | 340,765 | ||||||||||||||||
| 616,789 | 795,481 | 0.75 | % | ||||||||||||||||
| Software & Services | 1,500.00 | CITRIX SYS INC COM | 164,058 | 199,965 | |||||||||||||||
| 1,250.00 | MICROSOFT CORP COM | 122,462 | 289,950 | ||||||||||||||||
| 3,000.00 | ORACLE CORP COM | 90,340 | 181,290 | ||||||||||||||||
| 376,860 | 671,205 | 0.63 | % | ||||||||||||||||
| Technology Hardware & Equipment | 12,000.00 | APPLE INC COM | 411,814 | 1,583,520 | |||||||||||||||
| 7,500.00 | COMMSCOPE HLDG CO INC COM | 3 | 200,567 | 110,175 | |||||||||||||||
| 1,500.00 | INTEL CORP COM | 75,707 | 83,265 | ||||||||||||||||
| 1,000.00 | NETAPP INC COM | 41,930 | 66,440 | ||||||||||||||||
| 2,700.00 | SEAGATE TECHNOLOGY SHS | 108,598 | 178,524 | ||||||||||||||||
| 838,616 | 2,021,924 | 1.91 | % | ||||||||||||||||
| TOTAL INFORMATION TECHNOLOGY | 1,832,265 | 3,488,610 | 3.29 | % | |||||||||||||||
| MATERIALS | 3,000.00 | CHEMOURS CO COM | 48,440 | 79,020 | |||||||||||||||
| 2,026.00 | DOW CHEM CO COM | 74,429 | 105,149 | ||||||||||||||||
| 526.00 | DU PONT E I DE NEMOURS COM | 48,574 | 41,791 | ||||||||||||||||
| 500.00 | ECOLAB INC COM | 52,645 | 102,255 | ||||||||||||||||
| 2,400.00 | F M C CORP COM | 192,996 | 259,896 | ||||||||||||||||
| 500.00 | MITSUI & CO LTD SPONSORED | 182,130 | 186,275 | ||||||||||||||||
| 4,000.00 | TECK RESOURCES LTD CL B | 68,992 | 73,120 | ||||||||||||||||
| TOTAL MATERIALS | 668,206 | 847,506 | 0.80 | % | |||||||||||||||
| BMC FUND, INC. | |||||||
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) | |||||||
| January 31, 2021 | |||||||
| Percent | ||||||||||||||||||
| Sectors and | Shares | Market | of Net | |||||||||||||||
| Industries | Held | Company Name | Cost | Value | Assets | |||||||||||||
| COMMON STOCKS: | ||||||||||||||||||
| REAL ESTATE | ||||||||||||||||||
| Real Estate | 4,500.00 | BROADMARK RLTY CAP INC COM | 50,675 | 46,305 | ||||||||||||||
| 2,700.00 | BROOKFIELD PPTY REIT I CL | 46,198 | 46,845 | |||||||||||||||
| 3,000.00 | CYRUSONE INC COM | 195,359 | 218,850 | |||||||||||||||
| 2,000.00 | DIGITAL RLTY TR INC COM | 221,501 | 287,900 | |||||||||||||||
| 12,000.00 | EASTERLY GOVT PPTYS COM | 214,136 | 263,400 | |||||||||||||||
| 78,765.00 | EQUITY COMWLTH COM SH BEN | 2,194,765 | 2,245,590 | |||||||||||||||
| 3,500.00 | GEO GROUP INC COM | 83,062 | 31,290 | |||||||||||||||
| 10,000.00 | HANNON ARMSTRONG SUST COM | 153,105 | 591,500 | |||||||||||||||
| 6,500.00 | IRON MTN INC NEW COM | 209,420 | 218,855 | |||||||||||||||
| 4,000.00 | LTC PPTYS TR INC COM R | 159,295 | 154,560 | |||||||||||||||
| 15,000.00 | MEDICAL PPTYS TR INC COM | 185,835 | 316,650 | |||||||||||||||
| 2,000.00 | OMEGA HEALTHCARE INVS COM | 60,291 | 72,440 | |||||||||||||||
| 6,000.00 | PHYSICIANS RLTY TR COM | 112,435 | 105,780 | |||||||||||||||
| 3,000.00 | TANGER FACTORY OUTLET COM | 57,315 | 46,290 | |||||||||||||||
| 2,000.00 | TRITON INTL LTD CL A | 85,900 | 92,680 | |||||||||||||||
| 3,000.00 | VENTAS INC COM | 195,931 | 138,210 | |||||||||||||||
| 500.00 | W P CAREY & CO LLC COM | 31,927 | 33,200 | |||||||||||||||
| 4,257,150 | 4,910,345 | 4.63 | % | |||||||||||||||
| REIT | 500.00 | PROLOGIS TR SH BEN INT | 41,266 | 51,600 | ||||||||||||||
| 41,266 | 51,600 | 0.05 | % | |||||||||||||||
| TOTAL REAL ESTATE | 4,298,416 | 4,961,945 | 4.68 | % | ||||||||||||||
| UTILITIES | 500.00 | AMERICAN STS WTR CO COM | 19,159 | 38,630 | ||||||||||||||
| 166.00 | BROOKFIELD INFRASTRUCT SB VTG SHS A | - | 11,135 | |||||||||||||||
| 1,500.00 | BROOKFIELD INFRASTRUCTURE | 67,167 | 78,255 | |||||||||||||||
| 6,500.00 | DOMINION RES INC VA COM | 330,756 | 473,785 | |||||||||||||||
| 6,387.00 | DUKE ENERGY CORP COM | 514,153 | 600,378 | |||||||||||||||
| 1,000.00 | ENTERGY CORP NEW COM | 69,388 | 95,330 | |||||||||||||||
| 1,000.00 | NEXTERA ENERGY INC COM | 81,459 | 80,870 | |||||||||||||||
| 5,000.00 | SOUTHERN CO COM | 209,871 | 294,600 | |||||||||||||||
| 2,256.00 | WEC ENERGY GROUP INC COM | 89,900 | 200,558 | |||||||||||||||
| TOTAL UTILITIES | 1,381,853 | 1,873,541 | 1.77 | % | ||||||||||||||
| RIGHTS ATTACHED TO COMMON STOCKS | ||||||||||||||||||
| 725.00 | OCCIDENTAL PETROLEUM CORP COM | - | 6,344 | |||||||||||||||
| - | 6,344 | 0.01 | % | |||||||||||||||
| TOTAL INVESTMENTS IN COMMON STOCKS | $ | 32,726,298 | $ | 39,764,938 | 37.53 | % | ||||||||||||
BMC FUND, INC.
SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
January 31, 2021
| Coupon | Percent | ||||||||||||||||||||||||
| Interest | Maturity | Shares | Market | of Net | |||||||||||||||||||||
| Company Name | Rate | Date | Held | Cost | Value | Assets | |||||||||||||||||||
| PREFERRED STOCKS: | |||||||||||||||||||||||||
| BAC CAP TR XIV FLOATING RATE | 4, 5 | 5.630 | % | N/A | 200,000.00 | $ | 179,500 | $ | 197,100 | ||||||||||||||||
| CAPITAL ONE FINANCIAL CORP FIXED-FLOATING | 4, 5 | 5.550 | % | N/A | 100,000.00 | 83,034 | 98,537 | ||||||||||||||||||
| CIT GROUP INC-FLOATING | 4, 5 | 5.800 | % | N/A | 250,000.00 | 252,500 | 254,000 | ||||||||||||||||||
| CITIGROUP INC FIXED-FLOATING | 4, 5 | 5.950 | % | N/A | 350,000.00 | 341,347 | 349,230 | ||||||||||||||||||
| COMPASS DIVERSIFIED HOLDINGS PFD | 4, 5 | 7.250 | % | N/A | 7,500.00 | 174,029 | 186,300 | ||||||||||||||||||
| COMPASS DIVERSIFIED HOLDINGS | 4, 5 | 7.880 | % | N/A | 9,000.00 | 208,121 | 227,700 | ||||||||||||||||||
| GENERAL ELECTRIC CO PERP PFD SER B FIXED-FLOATING | 4, 5 | 4.100 | % | N/A | 250,000.00 | 250,000 | 217,500 | ||||||||||||||||||
| GENERAL MOTORS FINANCIAL CO INC-FLOATING | 4, 5 | 5.750 | % | N/A | 100,000.00 | 91,000 | 105,450 | ||||||||||||||||||
| GOLDMAN SACHS CAP II FIXED-FLOATING | 4, 5 | 4.000 | % | N/A | 250,000.00 | 229,997 | 242,920 | ||||||||||||||||||
| JP MORGAN CHASE & CO FIXED-FLOATING | 4, 5 | 5.000 | % | N/A | 150,000.00 | 149,992 | 148,640 | ||||||||||||||||||
| JP MORGAN CHASE & CO PFD | 4, 5 | 4.625 | % | N/A | 150,000.00 | 148,409 | 147,466 | ||||||||||||||||||
| MELLON CAP IV PFD CAP FIXED-FLOATING | 4, 5 | 6.244 | % | N/A | 350,000.00 | 315,746 | 345,450 | ||||||||||||||||||
| NEW YORK MTG TR INC PFD | 4 | 7.750 | % | N/A | 2,000.00 | 49,337 | 46,520 | ||||||||||||||||||
| PNC FINANCIAL SERVICES GROUP INC-FLOATING | 4, 5 | 4.850 | % | N/A | 250,000.00 | 257,440 | 261,350 | ||||||||||||||||||
| SUNTRUST BANKS INC-FLOATING | 4, 5 | 5.050 | % | N/A | 250,000.00 | 258,750 | 254,850 | ||||||||||||||||||
| WACHOVIA CAP TRUST III FIXED-FLOATING | 4, 5 | 5.569 | % | N/A | 1,450,000.00 | 1,437,500 | 1,447,825 | ||||||||||||||||||
| TOTAL INVESTMENTS IN PREFERRED STOCKS | $ | 4,426,702 | $ | 4,530,838 | 4.28 | % |
| BMC FUND, INC. | |||||||
| SCHEDULE OF INVESTMENTS (Concluded) (Unaudited) | |||||||
| January 31, 2021 | |||||||
| Market | Percent of | |||||||||||||
| Company Name | Cost | Value | Net Assets | |||||||||||
| Short-term Investments | MFB NI Treasury Money Market Fund | $ | 15,060,632 | $ | 15,060,632 | 14.22 | % | |||||||
| TOTAL INVESTMENTS - MARKET VALUE | 102,524,989 | 96.77 | % | |||||||||||
| TOTAL OTHER ASSETS IN EXCESS OF LIABILITIES | 3,423,460 | 3.23 | % | |||||||||||
| TOTAL NET ASSETS | $ | 105,948,449 | 100.00 | % | ||||||||||
| 1In default | ||||||||||||||
| 2Market value determined by the Fund's Board of Directors | ||||||||||||||
| 3Non-income producing security | ||||||||||||||
| 4Perpetual security. Maturity date is not applicable. | ||||||||||||||
| 5Variable rate security. The rate shown is the coupon as of the end of the reporting period. | ||||||||||||||
| BMC FUND, INC. | |||||
| SCHEDULE OF OPEN WRITTEN OPTION CONTRACTS (Unaudited) | |||||
| January 31, 2021 | |||||
| Percent | ||||||||||||||||||
| Contracts | Market | of Net | ||||||||||||||||
| Company Name | Held | Cost | Value | Assets | ||||||||||||||
| CALL OPTIONS: | ||||||||||||||||||
| APPLE INC CALL OPTION, $145 EXP 3/19/21 | 3 | (15.00 | ) | (6,127 | ) | (5,850 | ) | |||||||||||
| APPLE INC CALL OPTION, $145 EXP 4/16/21 | 3 | (25.00 | ) | (11,961 | ) | (13,925 | ) | |||||||||||
| APPLE INC CALL OPTION, $150 EXP 7/16/21 | 3 | (25.00 | ) | (17,336 | ) | (20,975 | ) | |||||||||||
| AT&T INC CALL OPTION, $33 EXP 3/19/21 | 3 | (30.00 | ) | (1,791 | ) | (390 | ) | |||||||||||
| BROOKFIELD PPT CALL OPTION, $15 EXP 2/19/21 | 3 | (2.00 | ) | (57 | ) | (440 | ) | |||||||||||
| CAESARS ENTERTAINMENT CALL OPTION, $95 EXP 3/19/21 | 3 | (15.00 | ) | (3,786 | ) | (1,950 | ) | |||||||||||
| COCA-COLA CO CALL OPTION, $52.50 EXP 2/19/21 | 3 | (10.00 | ) | (1,025 | ) | (190 | ) | |||||||||||
| COCA-COLA CO CALL OPTION, $52.50 EXP 5/21/21 | 3 | (10.00 | ) | (1,477 | ) | (1,130 | ) | |||||||||||
| DUKE ENERGY CO CALL OPTION, $100 EXP 4/16/21 | 3 | (30.00 | ) | (7,454 | ) | (4,770 | ) | |||||||||||
| KIMBERLY CLARK CALL OPTION, $145 EXP 4/16/21 | 3 | (10.00 | ) | (2,737 | ) | (1,500 | ) | |||||||||||
| NEXTERA ENERGY CALL OPTION, $85 EXP 6/18/21 | 3 | (10.00 | ) | (4,130 | ) | (4,480 | ) | |||||||||||
| QUIDEL CORP CALL OPTION, $270 EXP 3/19/21 | 3 | (3.00 | ) | (5,671 | ) | (5,760 | ) | |||||||||||
| STARBUCKS CORP CALL OPTION, $105 EXP 3/19/21 | 3 | (10.00 | ) | (2,384 | ) | (1,400 | ) | |||||||||||
| TECK RESOURCES CALL OPTION, $20 EXP 2/19/21 | 3 | (30.00 | ) | (2,112 | ) | (1,590 | ) | |||||||||||
| TRITON INTL LT CALL OPTION, $50 EXP 4/16/21 | 3 | (20.00 | ) | (2,039 | ) | (3,700 | ) | |||||||||||
| TOTAL CALL OPTIONS - LIABILITIES | (70,087 | ) | (68,050 | ) | -0.06 | % | ||||||||||||
| PUT OPTIONS: | ||||||||||||||||||
| ALIBABA GROUP PUT OPTION, $230 EXP 3/19/21 | 3 | (5.00 | ) | (6,492 | ) | (3,545 | ) | |||||||||||
| APPLE INC PUT OPTION, $90 EXP 3/19/21 | 3 | (20.00 | ) | (9,169 | ) | (880 | ) | |||||||||||
| CAESARS ENTERTAINMENT PUT OPTION, $70 EXP 3/19/21 | 3 | (10.00 | ) | (2,837 | ) | (7,320 | ) | |||||||||||
| EXPEDITORS INT PUT OPTION, $80 EXP 2/19/21 | 3 | (10.00 | ) | (1,870 | ) | (500 | ) | |||||||||||
| FEDEX CORP PUT OPTION, $250 EXP 4/16/21 | 3 | (10.00 | ) | (15,159 | ) | (25,950 | ) | |||||||||||
| GENERAC HOLDINGS PUT OPTION, $220 EXP 5/21/21 | 3 | (10.00 | ) | (11,484 | ) | (15,900 | ) | |||||||||||
| GENERAL MILLS PUT OPTION, $52.50 EXP 4/16/21 | 3 | (10.00 | ) | (1,445 | ) | (1,130 | ) | |||||||||||
| LAKELAND INDS PUT OPTION, $25 EXP 7/16/21 | 3 | (30.00 | ) | (11,354 | ) | (12,120 | ) | |||||||||||
| MICROSOFT CORP PUT OPTION, $195 EXP 2/19/21 | 3 | (15.00 | ) | (9,127 | ) | (1,035 | ) | |||||||||||
| MORGAN STANLEY PUT OPTION, $47 EXP 3/19/21 | 3 | (5.00 | ) | (582 | ) | (170 | ) | |||||||||||
| NEXTERA ENERGY PUT OPTION, $75 EXP 6/18/21 | 3 | (25.00 | ) | (8,461 | ) | (9,750 | ) | |||||||||||
| PFIZER INC PUT OPTION, $31 EXP 3/19/21 | 3 | (25.00 | ) | (3,462 | ) | (725 | ) | |||||||||||
| QUIDEL CORP PUT OPTION, $170 EXP 3/19/21 | 3 | (5.00 | ) | (7,892 | ) | (1,325 | ) | |||||||||||
| RENEWABLE ENERGY PUT OPTION, $65 EXP 4/16/21 | 3 | (20.00 | ) | (7,969 | ) | (9,400 | ) | |||||||||||
| SOLAREDGE TECH PUT OPTION, $200 EXP 3/19/21 | 3 | (10.00 | ) | (18,284 | ) | (5,680 | ) | |||||||||||
| WAL-MART STORE PUT OPTION, $135 EXP 3/19/21 | 3 | (10.00 | ) | (3,685 | ) | (4,270 | ) | |||||||||||
| TOTAL PUT OPTIONS - LIABILITIES | (119,272 | ) | (99,700 | ) | -0.09 | % | ||||||||||||
| TOTAL CALL AND PUT OPTIONS - LIABILITIES | $ | (189,359 | ) | $ | (167,750 | ) | -0.16 | % | ||||||||||
BMC FUND, INC.
NOTES TO QUARTERLY SCHEDULE OF INVESTMENTS
January 31, 2021
| 1. | ORGANIZATION |
BMC Fund, Inc. (the “Company”) is a closed-end, diversified investment company registered under the Investment Company Act of 1940, as amended. Prior to becoming a regulated investment company on April 1, 1981, BMC Fund, Inc. operated as a regular corporation. The following is a summary of significant accounting policies followed by the Company in the preparation of its financial statements.
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
A. Investment Valuations – The investment securities are stated at fair value as determined by closing prices on national securities exchanges. Investment securities include corporate bonds, mutual funds, and common and preferred stocks.
The investments in limited partnerships, other investments and venture capital are stated at estimated fair value as determined by the management of these investments and are approved by the Company’s Valuation Committee after giving consideration to historical and projected financial results, economic conditions, financial condition of investee and other factors and events subject to change, and ratified by the Company’s Board of Directors. Because of the inherent uncertainty of those valuations, the estimated values may differ significantly from the values that would have been used had a ready market value for the investments existed, and these differences could be material.
B. Basis of Presentation – The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification.
C. Investment Transactions – Investment transactions are accounted for on the date the order to buy or sell is executed. Realized gains and losses on investments are determined on the basis of specific identification of issues sold or matured. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums on securities purchased are amortized over the lives of the respective securities. Realized gains and losses on foreign currency transactions are included with realized gains and losses on investments.
D. Option Writing – When the Company writes an option, an amount equal to the premium received by the Company is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Company on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Company has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Company. The Company as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.
BMC FUND, INC.
NOTES TO QUARTERLY SCHEDULE OF INVESTMENTS
January 31, 2021
E. Income Taxes – No federal tax provision is required as it is the Company’s policy to comply with the provisions of Subchapter M of the Internal Revenue Code of 1954, as amended, including the distribution to its shareholders of substantially all of its income and any capital gains not offset by capital losses. Also, no state income tax provision has been provided because the states in which the Company has income recognize the tax exempt status of a regulated investment company.
The Company did not have an accrual for uncertain tax positions as deductions taken and benefits accrued are based on widely understood administrative practices and procedures, and are based on clear and unambiguous tax law. Tax returns for all years 2017 and thereafter are subject to possible future examinations by tax authorities.
F. Dividend Policy – It is the Company’s policy to pay dividends during the year in sufficient amounts to meet the requirements to maintain its status as a regulated investment company.
G. Cash and Short-Term Investments – For purposes of financial reporting, the Company considers all investments at financial institutions with original maturities of three months or less to be equivalent to cash. Short-term money market investments managed by third party investors are included in investment securities.
H. Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
I. Fair Value Measurements – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.
In determining fair value, the Company uses various valuation techniques. A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available. Valuation techniques that are consistent with the market or income approach are used to measure fair value. The fair value hierarchy is categorized into three levels based on the inputs as follows:
Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
BMC FUND, INC.
NOTES TO QUARTERLY SCHEDULE OF INVESTMENTS
January 31, 2021
Level 2 - Valuations based on inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly.
Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
Fair value is a market-based measure, based on assumptions of prices and inputs considered from the perspective of a market participant that are current as of the measurement date, rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date.
The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for investments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following table summarizes fair value information for assets and liabilities measured on a recurring basis as of January 31, 2021.
Asset Description (1) | Quoted Prices in Active (Level1) | Significant | Significant | Total | ||||||||||||
| Fixed Income | $ | 3,730,842 | $ | - | $ | - | $ | 3,730,842 | ||||||||
| Bond Mutual Funds | 3,051,589 | - | - | 3,051,589 | ||||||||||||
| Stock Mutual Funds | 7,060,533 | - | - | 7,060,533 | ||||||||||||
| Common Stocks – Publicly Traded | 39,764,938 | - | - | 39,764,938 | ||||||||||||
| Preferred Stocks – Publicly Traded | 4,530,838 | - | - | 4,530,838 | ||||||||||||
| Cash and Cash Equivalents | 18,580,620 | - | - | 18,580,620 | ||||||||||||
| Limited Partnerships – Measured at NAV (2) | - | - | - | 29,325,617 | ||||||||||||
| Total Investments | $ | 76,719,360 | $ | - | $ | - | $ | 106,044,977 | ||||||||
BMC FUND, INC.
NOTES TO QUARTERLY SCHEDULE OF INVESTMENTS
January 31, 2021
| Liability Description (1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
| Call Options | $ | (68,050 | ) | $ | - | $ | - | $ | (68,050 | ) | ||||||
| Put Options | (99,700 | ) | - | - | (99,700 | ) | ||||||||||
| Total Investments | $ | (167,750 | ) | $ | - | $ | - | $ | (167,750 | ) | ||||||
(1) There were no transfers between Level 1, Level 2 and Level 3 during the period.
(2) Certain investments measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Schedule of Investments.
| 3. | UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS |
(tax basis)
The amount of net unrealized appreciation (depreciation) and the cost of investment securities for tax purposes, including short-term securities as January 31, 2021, were as follows:
| Gross appreciation (excess of value over tax cost) | $ | 23,537,765 | ||
| Gross depreciation (excess of tax cost over value) | (7,966,236 | ) | ||
| Net unrealized appreciation | $ | 15,571,529 | ||
| Cost of investments for income tax purposes | $ | 86,953,460 |
| 4. | OPTIONS WRITTEN |
As of January 31, 2021, portfolio securities valued at $1,019,946 were held in escrow by the custodian as cover for call options written by the Company.
Transactions in options written during the quarter ended January 31, 2021 were as follows:
| Number of Contracts | Premiums Received | |||||||
| Options outstanding at October 31, 2020 | 745 | $ | 447,627 | |||||
| Options written | 386 | 169,563 | ||||||
| Options terminated in closing purchase transactions | (238 | ) | (138,363 | ) | ||||
| Options expired | (473 | ) | (289,468 | ) | ||||
| Options exercised | (0 | ) | (0 | ) | ||||
| Options outstanding at January 31, 2021 | 420 | $ | 189,359 | |||||
BMC FUND, INC.
NOTES TO QUARTERLY SCHEDULE OF INVESTMENTS
January 31, 2021
| 5. | PLEDGED COLLATERAL |
As of January 31, 2021, cash in the amount of $2,173,500 was pledged as collateral for put options sold by the Company.
| 6. | IMPAIRED SECURITIES |
Selected securities at the end of the year have significant investment impairment issues. These selected securities have an aggregate cost basis of $3,726,357 and have been assigned no value at January 31, 2021.
