BMC Fund N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03150

BMC FUND, INC.

(Exact name of registrant as specified in charter)

800 GOLFVIEW PARK (P. O. BOX 500)

LENOIR, NC 28645

(Address of principal executive offices) (Zip code)

CAROL FRYE

BMC FUND, INC.

P. O. BOX 500

LENOIR, NC 28645

(Name and address of agent for service)

Registrant's telephone number including area code: 828-758-6100

Date of fiscal year end:  October 31, 2010

Date of reporting period:  April 30, 2010

Item 1.  Report to Stockholders.

BMC FUND, INC.

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION

(UNAUDITED)

Six Months Ended April 30, 2010

BMC FUND, INC.

TABLE OF CONTENTS

	Page No.
Letter to Shareholders	1
Graphic Presentation of Portfolio Holdings and Sector Diversification	2
Statement of Assets and Liabilities	3
Statement of Operations	4
Statements of Changes In Net Assets	5
Notes to Financial Statements	6
Directors and Officers	14
Additional Information	18
Financial Highlights	19
Schedule of Investments	20
Schedule of Open Written Option Contracts	33

TO OUR SHAREHOLDERS:

We are happy to present to you our semi-annual report (unaudited) for the six months ended April 30, 2010, which we believe contains complete and pertinent financial information.

BMC Fund, Inc. became a Regulated Investment Company (“RIC”) on April 1, 1981.  During the six months ended April 30, 2010, the Company paid the following dividends per share:

December 10, 2009 to shareholders of record November 25, 2009	$	0.20
March 10, 2010 to shareholders of record February 25, 2010		0.25
Total	$	0.45

The attached Schedule of Investments is a listing of the entire Company’s diversified securities at April 30, 2010, with a total market value of $108,491,768.

Paul H. Broyhill, Chief Executive Officer

M. Hunt Broyhill, President

1

2

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

April 30, 2010

ASSETS AT MARKET VALUE:
Investment securities (cost - $107,050,013)	$	107,983,189
Investments in affiliate - wholly owned subsidiary (equity value $442,180)		508,579
Cash and short-term investments		161,171
Receivables, accrued interest and dividends		222,057
Receivable from broker		109,551
Other assets		59,573
Total assets		109,044,120
LIABILITIES:
Call options written, at fair value (premiums received $120,311)		100,503
Accounts payable and accrued expenses		12,498
Accounts payable to affiliates		71,539
Total liabilities		184,540
NET ASSETS AT APRIL 30, 2010 - EQUIVALENT TO $22.07 PER
SHARE ON 4,933,281 SHARES OF COMMON STOCK OUTSTANDING	$	108,859,580
SUMMARY OF SHAREHOLDERS' EQUITY:
Common stock, par value $5.00 per share - authorized 70,000,000 shares;
outstanding, 4,933,281 shares	$	24,666,405
Retained earnings prior to becoming investment company		78,927,269
Undistributed net investment income		533,066
Realized loss on investments		(1,481,257	)
Undistributed nontaxable gain		5,194,714
Unrealized depreciation of investments		1,019,383
NET ASSETS APPLICABLE TO COMMON STOCK OUTSTANDING	$	108,859,580

See accompanying notes to financial statements.

3

BMC FUND, INC.

STATEMENT OF OPERATIONS (Unaudited)

Six Months Ended April 30, 2010

INVESTMENT INCOME:
Income:
Interest - fixed income	$	92,675
Other interest and dividends		1,707,080
Equity in earnings of wholly-owned subsidiary		(42,618	)
Total income		1,757,137
Expenses:
Legal and professional fees		42,476
Directors' fees (Note 9)		30,500
Investment expense		43,396
Salaries		324,939
Property and liability insurance		28,399
Depreciation expense		2,021
Taxes and licenses		62,656
Rent		11,665
Office supplies and expense		16,126
Dues and subscriptions		24,452
Travel and entertainment		3,852
Total expenses		590,482
Investment income, net		1,166,655
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain (loss) from investments sold		(864,938	)
Change in unrealized appreciation of investments for the period		6,175,150
Net gain on investments		5,310,212
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS	$	6,476,867

See accompanying notes to financial statements.

4

BMC FUND, INC.

STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)

Six Months Ended April 30, 2010 and 2009

		2010			2009
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
	Net investment income	$	1,166,655		$	1,612,810
	Realized gains (losses) from investment securities sold		(864,938	)		(309,058	)
	Change in unrealized appreciation (depreciation) of
	investments for the year		6,175,150			(2,382,615	)
	Net increase (decrease) in net assets resulting from operations		6,476,867			(1,078,863	)
Distributions to shareholders from:
	Net realized gain on investment securities		-			-
	Net investment income		(1,011,133	)		(4,150,272	)
	Retained earnings prior to becoming an investment company		(1,208,843	)		(2,608,324	)
TOTAL INCREASE (DECREASE) IN NET ASSETS			4,256,891			(7,837,459	)
NET ASSETS AT BEGINNING OF PERIOD			104,602,689			102,574,164
NET ASSETS AT END OF PERIOD (Including
	undistributed net investment income:
	2010 - $533,066, 2009 - none)	$	108,859,580		$	94,736,705

See accompanying notes to financial statements.

5

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2010 (Unaudited)

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.  The policies are in conformity with generally accepted accounting principles for investment companies.

2.  SIGNIFICANT ACCOUNTING POLICIES

A.Investment Valuations – The investment securities are stated at market 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.

The carrying value of the investment in the wholly owned subsidiary is based on independent appraisals and internal assessments of the fair market values of the subsidiary’s underlying investments.  Equity in earnings of the wholly owned subsidiary in the statement of operations represents the current year earnings of the subsidiary accounted for using the equity method.

B.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.

For the six months ended April 30, 2010, the Company purchased and sold securities in the amount of $24,539,950 and $17,582,103 (excluding short-term investments and options), respectively.

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BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2010 (Unaudited)

SIGNIFICANT ACCOUNTING POLICIES (Continued)

C.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.

D.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.

E.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.

F.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.

G.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.

H.Fair Value Measurements – The Company applies a three-tier hierarchy to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable.

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BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2010 (Unaudited)

2.  SIGNIFICANT ACCOUNTING POLICIES (Continued)

Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity.  Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

Various inputs are used in determining the value of the Company’s investments as of the reporting period end.  The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments.  These inputs are categorized in the following hierarchy under applicable financial accounting standards:

Level 1 – Quoted prices in active markets for identical investments

Level 2 – Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – Significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)

The following is a summary of the inputs used to value the Company’s investments as of April 30, 2010.

Asset Description	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed Income	$	3,784,347		$	-	$	-	$	3,784,347
Mutual Funds
Bond Mutual Funds		30,518,371			-		-		30,518,371
Stock Mutual Funds		12,913,735			-		-		12,913,735
Other Investments
Limited Partnerships		-			-		11,964,327		11,964,327
Warrants		251			-		-		251
Common Stocks
Common Stocks – Publicly Traded		35,131,850			-		-		35,131,850
Common Stocks – Affiliate		-			-		508,579		508,579
Call Options		144,647			-		-		144,647
Put Options		(17,600	)		-		-		(17,600	)
Preferred Stocks		544,350			-		-		544,350
Short-term Investments		12,898,408			-		-		12,898,408
Total Investments	$	95,918,359		$	-	$	12,472,906	$	108,391,265

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BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2010 (Unaudited)

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

The table below presents a reconciliation for the quarter ended April 30, 2010, for all Level 3 assets that are measured at fair value on a recurring basis.

Level 3 Assets	Balance as of 10/31/2009		Accrued Discounts/ Premiums		Realized & Unrealized Gains & Losses			Net Purchases/ Sales			Net Transfers in (out of) Level 3		Balance as of 4/30/2010
Fixed Income	$	-	$	-	$	250,000		$	(250,000	)	$	-	$	-
Mutual Funds
Bond Mutual Funds		-		-		-			-			-		-
Stock Mutual Funds		-		-		-			-			-		-
Other Investments														-
Limited Partnerships		10,880,044		-		700,523			383,760			-		11,964,327
Warrants		-		-		-			-			-		-
Common Stocks														-
Common Stocks - Publicly Traded		-		-		-			-			-		-
Common Stocks - Affiliate		526,631		-		(18,052	)		-			-		508,579
Call Options		-		-		-			-			-		-
Put Options		-		-		-			-			-		-
Preferred Stocks		-		-		-			-			-		-
Cash and Cash Equivalents		-		-		-			-			-		-
Total Investments	$	11,406,675	$	-	$	932,471		$	133,760		$	-	$	12,472,906

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 April 30, 2010, were as follows:

Gross appreciation (excess of value over tax cost)	$	11,295,529
Gross depreciation (excess of tax cost over value)		(10,276,146	)
Net unrealized appreciation	$	1,019,383
Cost of investments for income tax purposes	$	107,371,882

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BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2010 (Unaudited)

4.    INVESTMENT IN AFFILIATE

Under Section 2(a)(3) of the Investment Company Act of 1940, a portfolio company is defined as “affiliated” if a fund owns five percent or more of its voting stock.  The Company held at least five percent of the outstanding voting stock of the following company during the period ended April 30, 2010.

Issuer	Number of Shares Held 4/30/10		Amount of Equity In Net Profit And Loss For the Period			Dividends (1)		Value at 4/30/10
Broyhill Industries, Inc. –  Wholly-owned subsidiary		1,000	$	(42,618	)	$	-	$	508,579

(1) All of the dividends received by BMC Fund, Inc. from its wholly owned subsidiary have been credited to the investment account since BMC Fund, Inc. is accounting for its investment in the subsidiary company on the equity method.

5.  CALL OPTIONS WRITTEN

As of April 30, 2010, portfolio securities valued at $2,086,739 were held in escrow by the custodian as cover for call options written by the Company.

Transactions in options written during the year ended April 30, 2010 were as follows:

	Number of Contracts			Premiums Received
Options outstanding at October 31, 2009		470		$	130,848
Options written		1,840			338,548
Options terminated in closing purchase transactions		(349	)		(88,022	)
Options expired		(961	)		(187,582	)
Options exercised		(352	)		(73,481	)
Options outstanding at April 30, 2010		648		$	120,311

6.  DISTRIBUTIONS TO SHAREHOLDERS

Classifications of distributions, net investment income/(loss) and net realized gain/(loss) may differ for financial statement and tax purposes.  The character of distributions made during the six months from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes.  Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Company.

10

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2010 (Unaudited)

6.  DISTRIBUTIONS TO SHAREHOLDERS (continued)

On December 10, 2009, an ordinary income distribution of $0.08 per share and a distribution from retained earnings prior to becoming an investment company of $0.12 per share were paid to shareholders of record on November 25, 2009.

On March 10, 2010, an ordinary income distribution of $0.12 and a distribution from retained earnings prior to becoming an investment company of $0.13 were paid to shareholders of record on February 25, 2010.

The tax character of distributions paid for the six months ended April 30, 2010 is as follows:

Distributions paid from:
Ordinary income	$	1,011,133
Retained earnings prior to becoming an investment company		1,208,843
Total	$	2,219,976

The tax components of distributable earnings are determined in accordance with income tax regulations, which may differ from composition of net assets reported under accounting principles generally accepted.  The difference for the period ended April 30, 2010 reflects $533,066 of undistributed net investment income under generally accepted accounting principles.

7.  NEW ACCOUNTING STANDARDS

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06, “Improving Disclosures about Fair Value Measurements.” ASU No. 2010-06 will require reporting entities to make new disclosures about amounts and reasons for significant transfers in and out of Level l and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, and information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements.  The new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2009 except for the disclosures surrounding purchases, sales, issuances and settlements on a gross basis in the reconciliation of Level 3 fair value measurements, which are effective for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact the adoption of ASU No. 2010-06 may have on the Company’s financial statement disclosures.

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BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2010 (Unaudited)

8.  LINE OF CREDIT

On April 22, 2010, the Company entered into an agreement with a bank for an unsecured line of credit in the amount of $3,500,000 to provide the Company more flexibility in its payment of dividends and management of its investments. The interest rate on any borrowings is at the one month LIBOR market index rate plus 150 basis points, with a floor of 3.00 percent. The Company will pay a commitment fee of 35 basis points on any unused balance. As of April 30, 2010, the Company had no borrowings from this line of credit, which expires on April 21, 2011.

9.  ADVISORY BOARD AND REMUNERATION OF DIRECTORS

The Company does not have an advisory board.  The independent directors are paid an annual fee of $3,000 plus $1,000 for each meeting attended in person or $500 cash for each meeting attended by telephone.  Each such independent director is paid an additional $1,000 for each day attending a committee meeting in person or $500 by telephone other than on the date of a board meeting.  In addition, all directors are reimbursed for their reasonable expenses incurred in attending meetings.

10.  RELATED PARTIES

The Company owns one wholly-owned subsidiary, Broyhill Industries, Inc.

The Company leases office space from Broyhill Investments, Inc., which is controlled by Paul H. Broyhill and M. Hunt Broyhill, both officers of BMC Fund, Inc.  The expense associated with this related party lease for the six months ended April 30, 2010 amounted to $11,665.  Broyhill Investments, Inc. also acts as a common paymaster for payroll and other shared services.  This service is provided at no cost to the Company.  All amounts paid by Broyhill Investments, Inc. on behalf of the Company are reimbursed by the Company.  The outstanding payable related to these transactions at April 30, 2010 was $71,539.

11. IMPAIRED SECURITIES

Selected securities at the end of the six months have significant investment impairment issues.  These selected securities have an aggregate cost basis of $7,951,731 and have been assigned no value at April 30, 2010.

12.  REVIEW FOR SUBSEQUENT EVENTS

In connection with the preparation of the financial statements of the Company as of and for the six months ended April 30, 2010, events and transactions subsequent to April 30, 2010 through June 17, 2010, the date the financial statements were issued, have been evaluated by the Company’s management for possible adjustment and/or disclosure. Management has not identified any subsequent events requiring financial statement disclosure as of the date these financial statements were issued.

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BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2010 (Unaudited)

13. SUPPLEMENTAL PROXY INFORMATION AND 2010 ANNUAL MEETING OF SHAREHOLDERS

The Annual Meeting of Shareholders of BMC Fund, Inc. was held on February 27, 2010 at the Company’s offices in Lenoir, North Carolina.  The meeting was held for the following purposes:

1.  To elect the following 12 directors to serve as follows:

Director	Term	Expiring
James T. Broyhill	1 year	2011
M. Hunt Broyhill	1 year	2011
Paul H. Broyhill	1 year	2011
R. Donald Farmer	1 year	2011
Robert G. Fox, Jr.	1 year	2011
Jan E. Gordon	1 year	2011
Gene A. Hoots	1 year	2011
Brent B. Kincaid	1 year	2011
Michael G. Landry	1 year	2011
John S. Little	1 year	2011
L. Glenn Orr, Jr.	1 year	2011
Allene B. Stevens	1 year	2011

2.  To vote upon such other business as may come before the meeting.

14.  SUPPLEMENTAL INFORMATION

Paul H. Broyhill, Chairman and Chief Executive Officer, Michael G. Landry, Vice President and Chief Investment Officer, M. Hunt Broyhill, President, Christopher R. Pavese, CFA, Managing Director, and Dan J. Wakin, Managing Director – Alternative Investments, are primarily responsible for the day-to-day management of the Company’s portfolio.  Mr. Paul Broyhill has had such responsibility since the inception of the Company.  Messrs. Landry and Hunt Broyhill have had such responsibility since 2001.  Messrs. Landry and Hunt Broyhill have been engaged in asset management for various institutions and high net worth individuals for more than five years.  Prior to joining the Company on March 1, 2005, Mr. Pavese was a Vice President and Portfolio Manager at JP Morgan Private Bank from January 1999 until February 2005.  At JP Morgan, Mr. Pavese was engaged in asset management, portfolio strategy, and asset allocation for high net worth individuals, personal trusts, endowments and foundations.  Mr. Wakin has had such responsibility since February 2006, and has served the Company in other capacities since 1995.

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BMC FUND, INC.

DIRECTORS AND OFFICERS

Six Months Ended April 30, 2010 (Unaudited)

The following table provides information about the directors and the officers of the Fund:

Directors Who Are Interested Persons

      Name, Address and Age Position(s) Held with Fund Term of Office and Length of Time Served Principal Occupation(s) During Past 5 Years Other Directorships Held by Director

James T. Broyhill (82) 1930 Virginia Road Winston-Salem, NC  27104	Director Vice Chairman	Since 1976 Since 2005	Retired; Director of Shepherd Street Equity Fund (1998-2008); President of Old Clemmons School Properties, Inc. (1998-present); former Secretary of the North Carolina Department of Commerce (1989-1991); former Chairman of the North Carolina Economic Development Board (1987-1989); former member, U.S. Senate (1986); former member, U.S. House of Representatives (1963-1986)	None
M. Hunt Broyhill (46) 1870 9th Street Court, NW Hickory, NC 28601	Director President Vice President	Since 2008 Since 2007 2001-2007	President of the Fund since February 2007; former Vice President of the Fund (2001-2007); Chief Executive of Broyhill Affinity Fund, LLC (2008-present), Broyhill Asset Management, LLC and Broyhill Wakin General Partners, LLC (1997-present); Director and President of Broyhill Investments, Inc. (1988-present); Director (1983-present) and President of Broyhill Family Foundation, Inc. (1988-present); General Partner of CapitalSouth Partners Fund I, LP and Capital South Partners Fund II, LP (2000-present); General Partner of CapitalSouth Partners Fund III, LP (2007-present); Senior Managing Partner and Director of Flagship Capital Partners, LLC (2007-present); Manager and Vice President of P. B. Realty, LLC (formerly P. B. Realty, Inc.) (1995-present)	None

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BMC FUND, INC.

DIRECTORS AND OFFICERS

Six Months Ended April 30, 2010 (Unaudited)

Directors Who Are Interested Persons

      Name, Address and Age Position(s) Held with Fund Term of Office and Length of Time Served Principal Occupation(s) During Past 5 Years Other Directorships Held by Director

Paul H. Broyhill (86) 135 Claron Place, S.E. Lenoir, NC  28645	Director Chief Executive Officer Chairman	Since 1976 Since 2001 Since 1976	Director, Chairman  and Chief Executive Officer of the Fund; former President of the Fund (2001-2007); Director (1972-present) and Chairman of Broyhill Investments, Inc. (1988-present); Director (1946-present) and Chairman of Broyhill Family Foundation, Inc. (1989-present); former President of Broyhill Family Foundation, Inc. (1980-1988); Manager and President of P. B. Realty, LLC (formerly P. B. Realty, Inc.) (1983-present)	None
Jan E. Gordon (58) 3075 Rolling Woods Drive Palm Harbor, FL 34683	Director	Since 2001	Retired; former election assistant, Pinellas County, FL Supervisor of Elections (1992-2005)	None
Michael G. Landry (63) 2501 Barcelona Drive Ft. Lauderdale, FL 33301	Director Vice President and Chief Investment Officer	Since 1993 Since 2001	Director; Vice President and Chief Investment Officer of the Fund (2001-present); President, Landry Trebbi Investment Corp. (2005-present); Investment Committee Chairman, Hudson Fairfax India Fund (2006-2008); CEO of Mackenzie Investment Management, Inc., Chairman of Ivy Funds and Executive Vice President of Mackenzie Financial Fund (1987-1999)	None
Allene B. Stevens (88) 153 Hillhaven Place SE Lenoir, NC  28645	Director	Since 1983	Private Investor

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BMC FUND, INC.

DIRECTORS AND OFFICERS

Six Months Ended April 30, 2010 (Unaudited)

Directors Who Are Not Interested Persons

      Name, Address and Age Position(s) Held with Fund Term of Office and Length of Time Served Principal Occupation(s) During Past 5 Years Other Directorships Held by Director

R. Donald Farmer (63) 273 Leeward Point Loop Taylorsville, NC 28681	Director	Since 2008	President of Don Farmer, CPA, PA, an independent public accounting firm and producer of federal income tax seminars and seminar materials (1984-present)	None
Robert G. Fox, Jr. (60) 6525 Robin Hollow Drive Mint Hill, NC 28227	Director	Since 2008	Private Investor. Former President and Chief Banking Officer of NewDominion Bank (2005-April 2010); Executive Vice President of First Charter Bank/First Charter Corporation (1993-2005)	None
Gene A. Hoots (70) 3524 Kylemore Court Charlotte, NC 28210	Director	Since 1987	Chairman Emeritus, CornerCap Investment Counsel, a registered investment adviser serving private and pension fund clients  (since 2001)	None
Brent B. Kincaid (79) 2703 Lakeview Drive Lenoir, NC  28645	Director	Since 2005	Retired since 1998; former President and CEO of Broyhill Furniture Industries, Inc.	None
John S. Little (78) 4601 Gulf Shore Blvd. N. #18 Naples, FL 34103	Director	Since 2001	Retired; former Managing Director and Chief Executive, Associated Octel, London (1989-1995); former Senior Vice President of Corporate Technology, Great Lakes Chemical Corporation (1981-1989)	None
L. Glenn Orr, Jr. (70) 2735 Forest Drive Winston-Salem, NC 27104	Director	Since 1999	Managing Director, Orr Holdings, LLC, a private investment company (since 2009); Managing Director, The Orr Group, an investment banking firm (1995-2008)	Highwoods Properties, Inc.; Medical Properties Trust

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BMC FUND, INC.

DIRECTORS AND OFFICERS

Six Months Ended April 30, 2010 (Unaudited)

Other Executive Officers

      Name, Address and Age Position(s) Held with Fund Term of Office and Length of Time Served Principal Occupation(s) During Past 5 Years Other Directorships Held by Director

Boyd C. Wilson, Jr. (57) 646 Pleasant Hill Road Lenoir, NC 28645	Vice President and Chief Financial Officer	Since 2006	Vice President and Chief Financial Officer of the Fund since February 2006; Director (2007-present) and Executive Vice President of Broyhill Investments, Inc. (2005-present); Vice President of Broyhill Family Foundation, Inc. (2007-present); Treasurer of Broyhill Wakin General Partners, LLC (2008-present); Manager and Vice President of P. B. Realty, LLC (formerly P. B. Realty, Inc.) (2006-present); Vice President – Finance & Administration of Kincaid Furniture Company, Incorporated (1990-2005)	Bank of Granite Corporation
Carol Frye (52) 210 Beall Street Lenoir, NC 28645	Secretary and Treasurer	Since 2001	Secretary and Treasurer of the Fund since 2001; Secretary and Treasurer of Broyhill Investments, Inc. (2000-present); Director (2001-present), Secretary and Treasurer of Broyhill Family Foundation, Inc. (2003-present); Secretary of Broyhill Wakin General Partners, LLC (1997-present); Secretary and Treasurer of P. B. Realty, LLC (formerly P. B. Realty, Inc.) (2001-present)	None

17

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2010 (Unaudited)

Proxy Voting - The policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities are available without charge, upon request, by calling 828-758-6100; on the Fund’s website at http://www.bmcfund.com;  and on the Securities and Exchange Commission’s website at http://www.sec.gov.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 828-758-6100, and on the SEC’s website at http://www.sec.gov (see Form N-PX).

Portfolio Holdings - The Fund files a complete schedule of its portfolio holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q.  The Fund’s Form N-Q filings are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-202-551-8090.

18

BMC FUND, INC.

FINANCIAL HIGHLIGHTS

Six Months April 30, 2010 (Unaudited) Years Ended October 31, 2009, 2008, 2007, 2006, 2005, 2004, and 2003, Seven Month Period Ended October 31, 2002, and Each of the Two Years in the Period Ended March 31, 2002

The following table presents financial information divided into three parts:  per share operating performance, total investment return and ratios and supplemental data for the six months ended April 30, 2010 (Unaudited), the years ended October 31, 2009, 2008, 2007, 2006, 2005, 2004, and 2003, the seven month period ended October 31, 2002, and each of the two years in the period ended March 31, 2002.  The first part, per share operating performance, details the changes on a per share basis of the Company's beginning net asset value to its ending net asset value.  The second part, total investment return, is based on the market price of the Company's shares of stock.  Part three, ratios and supplemental data, provides additional financial information related to the Company's performance.

PER SHARE OPERATING    PERFORMANCE	Six Months Ended April 30, 2010			2009			2008			2007			2006			2005			2004			2003			Seven Months Ended October 31, 2002			2002			2001
Net asset value, beginning of period	$	21.20		$	20.79		$	36.28		$	33.55		$	32.84		$	30.94		$	29.17		$	25.46		$	28.95		$	29.44		$	31.84
Net investment income		0.24			0.48			0.73			0.78			1.06			0.88			0.82			0.95			0.59			1.13			1.31
Net gains (losses) on investments		1.08			1.65			(10.98	)		4.25			2.43			2.48			2.08			3.76			(3.45	)		(0.30	)		(2.13	)
Total from investment operations		1.32			2.13			(10.25	)		5.03			3.49			3.36			2.90			4.71			(2.86	)		0.83			(0.82	)
Less distributions:
Dividends from net investment income		0.20			0.92			1.04			2.03			2.37			-			0.65			0.45			0.56			0.84			1.58
Distributions from capital gains		-			-			1.42			0.27			0.41			1.46			0.48			0.55			0.07			0.48			-
Distributions from retained earnings		0.25			0.80			-			-			-			-			-			-			-			-			-
P. B. Realty, Inc. Spin-off		-			-			2.78			-			-			-			-			-			-			-			-
Total distributions		0.45			1.72			5.24			2.30			2.78			1.46			1.13			1.00			0.63			1.32			1.58
Net asset value, end of period	$	22.07		$	21.20		$	20.79		$	36.28		$	33.55		$	32.84		$	30.94		$	29.17		$	25.46		$	28.95		$	29.44
Per share market value, end of period1	$	16.75		$	16.75		$	26.00		$	26.00		$	26.00		$	26.00		$	26.00		$	26.00		$	26.00		$	26.00		$	26.00
TOTAL INVESTMENT RETURN2		7.88	%		12.72	%		(39.42	)%		19.35	%		13.40	%		12.95	%		11.14	%		18.12	%		(18.85	)%*		3.20	%		(3.15	)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands)	$	108,860		$	104,603		$	102,574		$	178,975		$	165,500		$	162,027		$	152,623		$	143,910		$	125,596		$	142,811		$	145,221
Ratio of expenses to average net assets3		1.11	%		1.18	%		1.02	%		0.75	%		0.73	%		0.60	%		0.73	%		0.73	%		0.71	%*		0.62	%		0.49	%
Ratio of net investment income to average net assets3		1.09	%		2.40	%		2.37	%		2.26	%		3.20	%		2.77	%		2.70	%		3.52	%		3.78	%*		3.91	%		4.23	%
Portfolio turnover rate		16.70	%		69.62	%		67.44	%		51.23	%		48.22	%		57.54	%		40.10	%		52.51	%		31.95	%		67.18	%		33.65	%

1Unaudited - - Based on stock trades, which are very limited, during that year.

2Unaudited - - Computed as follows:  income from investment operations divided by per share market value.

3Average is computed on a quarterly basis.

*Annualized

19

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Unaudited)

April 30, 2010 

Debt Issuer	Coupon Interest Rate			Maturity Date	Face Amount		Cost		Market Value		Percent of Net Assets
FIXED INCOME:
OAKWOOD HOMES CORP1,2,3		7.875	%	3/1/2004	$	1,000,000	$	951,731	$	-
LEHMAN BROTHERS HLDGS NIKKEI INDEX1,2,3		0.000	%	9/29/2008		3,000,000		3,000,000		-
LEHMAN BROTHERS HLDGS EAFE INDEX1,2,3		0.000	%	11/15/2008		1,000,000		1,000,000		-
LEHMAN BROTHERS HLDGS MEDIUM TERM NOTE2,3		0.000	%	3/15/2011		2,500,000		2,500,000		-
AMKOR TECHNOLOGY		2.500	%	5/15/2011		250,000		228,241		248,125
MINEFINDERS CORP CONV BOND		4.500	%	12/15/2011		250,000		238,252		260,312
AK STEEL		7.750	%	6/15/2012		500,000		443,415		501,250
FED REPUBLIC OF BRAZIL		12.500	%	1/5/2016		960,873		1,085,146		1,115,975
NII HOLDINGS INC		2.750	%	8/15/2025		500,000		462,014		513,125
TOTAL INVESTMENTS IN FIXED INCOME					$	9,960,873	$	9,908,799	$	2,638,787	2.42%

20

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2010

Debt Issuer	Coupon Interest Rate			Maturity Date	Face Amount		Cost		Market Value		Percent of Net Assets
US GOVERNMENT & AGENCY OBLIGATIONS:
US TREASURY BILLS3		0.000	%	7/22/2010	$	130,000	$	129,964	$	129,955
US TREASURY BILLS		4.250	%	1/15/2011		500,000		514,907		513,691
US TREASURY BILLS		0.875	%	1/31/2011		500,000		502,997		501,914
TOTAL INVESTMENTS IN US GOVERNMENT & AGENCY OBLIGATIONS					$	1,130,000	$	1,147,868	$	1,145,560	1.05%

21

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010

							Percent
	Shares				Market		of Net
Company Name	Held		Cost		Value		Assets
MUTUAL FUNDS:
BOND MUTUAL FUNDS:
ABERDEEN ASIA-PACIFIC INCOME FUND		100,000.00	$	547,920	$	683,000
CALAMOS CONVERTIBLE & HIGH INCOME FUND		40,000.00		415,563		519,200
CALAMOS CONVERTIBLE OPPORTUNITIES & INCOME FUND		30,000.00		272,657		388,500
EATON VANCE FLOATING RATE INCOME TRUST		40,000.00		513,954		642,020
FEDERATED PRUDENT DOLLARBEAR FUND INSTITUTIONAL SH3		37,735.85		500,000		472,075
FIDELITY US BOND INDEX		192,678.23		2,000,000		2,163,776
FLAHERTY & CRUMRINE PREFERRED INCOME FUND		23,633.00		203,791		281,942
GABELLI CONVERTIBLE & INCOME SECURITIES FUND		32,600.00		203,772		213,530
HARBOR BOND FUND INSTITUTIONAL CLASS		148,102.73		1,750,000		1,852,765
ING PRIME RATE TRUST		150,000.00		698,635		913,500
ISHARES BARCLAY TIPS BOND		15,000.00		1,496,134		1,590,900
ISHARES BARCLAYS 3-7 YR TREASURY BOND FUND		17,500.00		1,962,886		1,959,650
ISHARES IBOXX $ INVESTMENT GRADE CORP BOND FUND		15,000.00		1,512,420		1,609,650
JANUS TRITON FUND T SHARES		14,111.01		150,000		198,542
JOHN HANCOCK PREFERRED INCOME FUND		10,000.00		157,204		180,100
LOOMIS SAYLES FDS BOND FUND INSTITUTIONAL SHARES		86,518.62		1,112,500		1,211,261
LOOMIS SAYLES GLOBAL BOND FUND		30,450.67		500,000		489,647
NUVEEN FLOATING RATE INCOME FUND		40,000.00		376,704		479,200
PIMCO COMMODITY REAL RETURN STRATEGY CLASS A		120,754.48		950,000		964,828
PIMCO CORPORATE INCOME FUND COM		12,500.00		153,357		187,375
PIMCO GLOBAL ADVANTAGE STRATEGY BOND FUND INSTIT SHARES		42,955.33		500,000		478,093
PIMCO GLOBAL MULTI-ASSET FUND CLASS D		54,601.01		600,000		614,261
PIMCO STRATEGIC GLOBAL GOVERNMENT FUND		15,000.00		146,148		153,750
PIMCO TOTAL RETURN FUND INSTITUTIONAL SHARES		488,758.55		5,000,000		5,439,883
POWERSHARES II PREFERRED		5,000.00		66,915		69,150
SPDR DB INTL. GOVT. INFLATION-PROTECTED BOND FUND		25,000.00		1,347,702		1,384,500
TEMPLETON EMERGING MARKETS INCOME FUND		25,000.00		337,317		378,250
TEMPLETON GLOBAL INCOME FUND		50,000.00		431,003		513,500
VAN KAMPEN SENIOR INCOME TRUST		150,000.00		540,955		729,000
VANGUARD INTERM-TERM INVESTMENT-GRADE		274,750.29		2,300,000		2,725,523
VANGUARD SHORT-TERM BOND ETF		5,000.00		401,025		401,000
WISDOMTREE DREYFUS CHINESE YUAN FUND		25,000.00		631,426		630,000
TOTAL BOND MUTUAL FUNDS				27,779,988		30,518,371	28.03%

22

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010

								Percent
	Shares					Market		of Net
Company Name	Held			Cost		Value		Assets
MUTUAL FUNDS:
STOCK MUTUAL FUNDS:
INTERNATIONAL EQUITIES
Foreign Large Blend
VANGUARD INTERNATIONAL GROWTH FUND		2,728.76			150,000		149,563
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND		7,075.47			105,000		101,745
					255,000		251,308		0.23	%
			��
Foreign Large Value
ISHARES MSCI CANADA INDEX		10,000.00			202,749		282,300
OAKMARK INTERNATIONAL FUND		10,063.26			175,000		178,623
					377,749		460,923		0.42	%
Diversified Emerging Markets
ISHARES MSCI BRIC INDEX		500.00			19,178		22,780
ISHARES MSCI EMERGING MARKETS INDEX		5,000.00			162,695		210,250
WISDOMTREE EMERGING MARKETS SMALL CAP DIV		10,000.00			299,380		452,800
					481,253		685,830		0.63	%
Diversified Asia Pacific
ISHARES MSCI EX-JAPAN		10,000.00			297,900		422,500
ISHARES TR FTSE/XINHUA CHINA 25 INDEX		10,000.00			326,609		408,400
					624,509		830,900		0.76	%
Asia Ex-Japan Stock
ISHARES INC MSCI HONG KONG INDEX		25,000.00			273,430		391,500
TEMPLETON DRAGON FD COM		6,000.00			160,320		152,940
					433,750		544,440		0.50	%
Latin America Stock
ISHARES INC MSCI BRAZIL INDEX		5,000.00			219,197		361,288		0.33	%
TOTAL INTERNATIONAL EQUITIES					2,391,458		3,134,689		2.88	%
SPECIALTY FUNDS
Diversified Financials
POWERSHARES FINANCIAL PREFERRED		20,000.00			363,538		338,400		0.31	%
Real Estate
COHEN & STEERS REIT & PREFERRED INCOME FUND		15,000.00			102,853		190,023		0.17	%
Pharmaceuticals & Biotechnology
ISHARES NASDAQ BIOTECHNOLOGY INDEX		1,500.00			135,833		136,845		0.13	%

23

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010

							Percent
	Shares				Market		of Net
Company Name	Held		Cost		Value		Assets
MUTUAL FUNDS:
STOCK MUTUAL FUNDS (Continued):
Utilities
REAVES UTILITY INCOME FUND		5,000.00		95,337		97,500		0.09	%
Large Cap Blend
T. ROWE PRICE PERSONAL STRAT GROWTH FUND		9,661.84		200,000		207,729
YACKTMAN FUND INC		6,658.21		105,000		109,128
				305,000		316,857		0.29	%
Precious Metals
ISHARES SILVER TRUST		25,000.00		344,625		456,500
MARKET VECTORS GOLD MINERS		23,000.00		909,347		1,161,730
SPDR GOLD TRUST3		10,000.00		969,549		1,153,600
				2,223,521		2,771,830		2.55	%
Conservative Allocation
VANGUARD WELLESLEY INCOME FUND		9,990.25		205,000		210,395		0.19	%
Moderate Allocation
FPA CRESCENT FUND		3,898.64		100,000		100,975		0.09	%
World Allocation
IVY ASSET STRATEGY FUND CLASS I		72,445.42		1,979,197		1,660,449		1.53	%
Long-Short
HUSSMAN STRATEGIC GROWTH FUND		311,478.07		5,000,000		3,955,771		3.63	%
TOTAL SPECIALTY FUNDS				10,510,279		9,779,045		8.98	%
TOTAL STOCK MUTUAL FUNDS				12,901,737		12,913,734		11.86	%
TOTAL INVESTMENTS IN MUTUAL FUNDS			$	40,681,725	$	43,432,105		39.90	%

24

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010                                                                                                                                        

			Market		Percent of
Company Name	Cost		Value		Net Assets
OTHER INVESTMENTS:
LIMITED PARTNERSHIPS:
ARMORED WOLF ALPHA FUND, LLC2	$	1,000,000	$	1,017,628
DEL MAR INDEX OPPORTUNITIES ONSHORE FUND2		1,500,000		1,642,418
ELLIOTT ASSOCIATES LP2		2,000,000		2,578,906
LMC COMPASS FUND LP2		1,500,000		1,855,649
RD LEGAL FUNDING PARTNERS LP2		1,000,000		1,229,090
STARK INVESTMENTS LP2		1,000,000		2,563,655
STARK STRUCTURED FINANCE ONSHORE FUND2		1,000,000		950,663
WALNUT INVESTMENT PARTNERS2		235,567		126,318
TOTAL LIMITED PARTNERSHIPS		9,235,567		11,964,327		10.99	%
WARRANTS:
CREDIT SUISSE 24 MONTH COMMODITY CURRENCY BASKET3		58,400		251
TOTAL WARRANTS		58,400		251		0.00	%
TOTAL OTHER INVESTMENTS	$	9,293,967	$	11,964,578		10.99	%

25

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010

								Percent
Sectors and	Shares					Market		of Net
Industries	Held		Company Name	Cost		Value		Assets
COMMON STOCKS:
CONSUMER DISCRETIONARY
Consumer Durables & Apparel		3,000.00	CHEROKEE INC DEL NEW COMMON	$	59,934	$	61,320
		10,000.00	GARMIN LTD ORD		313,824		373,800
		20,000.00	NINTENDO3		676,450		838,000
					1,050,208		1,273,120		1.17	%
Consumer Services		5,500.00	COMPANHIA DE BEBIDAS DAS A		563,197		537,900
		10,000.00	CORE-MARK HOLDING CO INC3		326,650		305,200
					889,847		843,100		0.77	%
Retailing		1,500.00	AARON'S INC		29,985		33,855		0.03	%
TOTAL CONSUMER DISCRETIONARY					1,970,040		2,150,075		1.98	%
CONSUMER STAPLES
Food & Staples Retailing		15,000.00	WAL MART STORES INC COM		750,223		804,600		0.74	%
Food, Beverage & Tobacco		12,500.00	ALTRIA GROUP INC		225,438		264,875
		9,400.00	DIAGEO P L C SPON ADR NEW		586,834		640,516
		2,500.00	GENERAL MLS INC COM		169,737		177,900
		200.00	HERSHEY CO COM		8,819		9,402
		5,000.00	LORILLARD INC		323,175		391,850
		10,000.00	NESTLE S A SPONSORED ADR		396,900		489,000
		15,000.00	PHILIP MORRIS INTL INC COM		627,562		736,200
		2,000.00	SMUCKER J M CO COM NEW		121,939		122,140
					2,460,404		2,831,883		2.60	%
Household & Personal Products		10,000.00	KIMBERLY CLARK CORP COM		601,790		612,600
		6,000.00	PROCTER & GAMBLE CO COM		391,831		372,960
					993,621		985,560		0.91	%
TOTAL CONSUMER STAPLES					4,204,248		4,622,043		4.25	%
ENERGY		11,700.00	BP PLC SPONSORED ADR		554,964		610,155
		5,000.00	BP PRUDHOE BAY ROYALTY TRUST		426,267		493,000
		3,000.00	BUCKEYE PARTNERS L P UNIT		146,923		182,340
		12,000.00	CONOCOPHILLIPS COM		633,695		710,280
		9,000.00	CPFL ENERGIA		433,927		559,710
		2,000.00	DIAMOND OFFSHORE DRILL COM		194,022		158,200
		2,000.00	ENBRIDGE ENERGY PARTNERS		96,489		102,540
		11,000.00	ENCANA CORP COM		296,520		363,770
		10,500.00	ENERGY TRANSFER EQUITY LP		249,388		359,310
		11,500.00	ENERGY TRANSFER PRTNRS		494,758		562,350
		13,440.00	ENTERPRISE PRODS PARTN COM		294,395		476,582
		6,004.00	EXXON MOBIL CORP COM		453,624		406,891
		2,000.00	INTERGY LP UNIT LTD PARTNERSHIP		72,211		76,060
		5,000.00	KINDER MORGAN ENERGY UT LT		261,494		337,450
		178.00	KINDER MORGAN MANAGEMENT3		7,900		10,468
		90,654.00	KINDER MORGAN MGMT FRACTIONAL3		40		53
		15,000.00	LINN ENERGY LLC		270,792		406,500

26

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010 

								Percent
Sectors and	Shares					Market		of Net
Industries	Held		Company Name	Cost		Value		Assets
COMMON STOCKS:
ENERGY (Continued)		12,500.00	MARKWEST ENERGY PARTNERS L		159,043		384,375
		10,000.00	MLP & STRATEGIC EQUITY FUND		138,072		177,400
		2,000.00	NATIONAL OILWELL VARCO COM		76,950		88,060
		3,000.00	ONEOK PARTNERS LP		155,009		184,890
		2,000.00	PEABODY ENERGY CORP COM		90,750		93,440
		10,000.00	PENN WEST ENERGY TR		181,713		200,700
		9,000.00	PETROLEO BRASILEIRO SA SPO		381,839		381,600
		5,000.00	PLAINS ALL AMERICAN PIPELINE LP		245,274		289,950
		50.00	SASOL		2,275		2,033
		10,000.00	TOTAL FINA S A SPONSORED A		505,647		543,800
		9,000.00	TRANSMONTAIGNE LP		248,755		268,515
		3,000.00	WALTER ENERGY INC		225,143		242,430
TOTAL ENERGY					7,297,879		8,672,852		7.97	%
FINANCIALS
Banks		50,000.00	BLADEX - BANCO LATIN AMERICA		562,989		708,000
		6,000.00	PEOPLE'S UNITED FINANCIAL		99,150		93,120
					662,139		801,120		0.74	%
Diversified Financials		3,000.00	BERKSHIRE HATHAWAY INC CL B3		218,700		231,000		0.21	%
Insurance		2,000.00	TRAVELERS COMPANIES COM		105,406		101,480
		6,000.00	W. R. BERKLEY CORP		159,325		162,000
					264,731		263,480		0.24	%
Real Estate		35,000.00	MEDICAL PPTYS TR INC COM		370,003		351,750
		1,000.00	VENTAS INC		39,085		47,230
					409,088		398,980		0.37	%
Financial		5,000.00	ANNALY MORTGAGE MGMT INC COM		85,975		84,750
		12,000.00	ANWORTH MORTGAGE ASSET COM		81,060		80,520
		2,000.00	IBERIABANK CORP		115,213		123,280
					282,248		288,550		0.27	%
TOTAL FINANCIALS					1,836,906		1,983,130		1.82	%
HEALTH CARE
Health Care Equipment & Services		2,000.00	AMERISOURCEBERGEN CORP COM		57,550		61,700
		2,000.00	COVIDIEN PLC		109,285		95,980
		1,000.00	CRYOLIFE INC.		15,192		6,110
		50.00	LABORATORY CORP AMER HLDGS3		3,536		3,929
		2,900.00	MEDTRONIC INC COM		156,441		126,701
		5,500.00	VARIAN MEDICAL SYSTEMS3		215,450		310,090
					557,454		604,510		0.56	%
Pharmaceuticals & Biotechnology		5,500.00	AMGEN INC COM3		293,069		315,205
		10,000.00	ASTRAZENECA PLC SPONSORED		435,850		442,300
		15,000.00	BRISTOL MYERS SQUIBB COM		370,569		379,650
		10,000.00	GLAXOSMITHKLINE PLC SPONSO		306,136		372,900
		1,000.00	HOSPIRA INC3		56,974		53,790

27

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010

								Percent
Sectors and	Shares					Market		of Net
Industries	Held		Company Name	Cost		Value		Assets
COMMON STOCKS:
Pharmaceuticals & Biotechnology (Continued)		7,500.00	JOHNSON & JOHNSON COM		460,378		482,250
		35,000.00	MERCK & CO INC COM		1,134,485		1,226,400
		3,000.00	PDL BIOPHARMA INC COM		30,543		17,460
		52,500.00	PFIZER INC COM		947,379		877,800
					4,035,383		4,167,755		3.83	%
Asia Ex-Japan Stock		2,000.00	FRESENIUS MED CARE AG		110,365		107,880		0.10	%
Technology		2,000.00	ATHENAHEALTH INC3		83,784		58,040		0.05	%
TOTAL HEALTH CARE					4,786,986		4,938,185		4.54	%
INDUSTRIALS
Capital Goods		2,500.00	3M COMPANY		195,313		221,675
		2,500.00	CATERPILLAR INC DEL COM		92,141		170,225
		2,500.00	DEERE & CO COM		120,229		149,550
		2,500.00	EMERSON ELEC CO COM		92,233		130,575
		7,000.00	GENERAL ELEC CO COM		138,898		132,020
		10,000.00	NORTHROP GRUMMAN CORP		496,246		678,300
		200.00	SIEMENS A G SPONSORED ADR		14,415		19,528
		9,000.00	TEEKAY LNG PARTNERS LP		168,342		262,080
TOTAL INDUSTRIALS					1,317,817		1,763,953		1.62	%
INFORMATION TECHNOLOGY
Software & Services		28,500.00	MICROSOFT CORP COM		677,657		870,247
		7,000.00	ORACLE CORP COM		148,921		181,073
					826,578		1,051,320		0.97	%
Technology Hardware & Equipment		8,200.00	CISCO SYS INC COM3		192,134		220,826
		1,000.00	INTERNATIONAL BUSINESS MACH COM		133,046		129,000
		2,000.00	L-3 COMMUNICATNS HLDGS COM		203,661		187,140
		4,200.00	WESTERN DIGITAL CORP COM3		178,057		172,578
					706,898		709,544		0.65	%
Semiconductors & Semiconductor Equipment		21,500.00	INTEL CORP COM		392,388		491,060		0.45	%
Technology		50,000.00	NOVELL INC3		292,745		281,875		0.26	%
TOTAL INFORMATION TECHNOLOGY					2,218,609		2,533,799		2.33	%
MATERIALS		500.00	BHP BILLITON LTD SPONSORED ADR		31,497		36,395
		110.00	BROOKFIELD INFRASTRUCTURE		2,310		1,942
		1,000.00	CF INDUSTRIES HOLDINGS, INC		71,800		83,670
TOTAL MATERIALS					105,607		122,007		0.11	%

28

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010

								Percent
Sectors and	Shares					Market		of Net
Industries	Held		Company Name	Cost		Value		Assets
COMMON STOCKS:
TELECOMMUNICATION SERVICES		2,000.00	AMERICA MOVIL SA DE CV		87,426		102,960
		20,000.00	AT&T CORP COM		538,448		521,200
		30,000.00	BT GROUP		589,198		574,500
		16,500.00	CHINA MOBILE HONG KONG		821,090		806,850
		15,000.00	FRANCE TELECOM ADR		390,091		330,000
		20,000.00	PARTNER COMMUNICATIONS		290,103		392,800
		38,000.00	SK TELECOM LTD		651,851		703,380
		5,688.00	TELECOM CP NEW ZEALAND		82,004		44,537
		25,000.00	TELECOMUNCA DE SAO PAULO		562,338		489,500
		4,000.00	TELEFONICA S A SPONSORED		260,996		271,120
		20,000.00	TELSTRA LTD SPON ADR FINAL		289,700		291,800
		23,000.00	VERIZON COMMUNICATIONS COM		733,965		664,700
		40,000.00	VODAFONE GROUP		885,112		888,000
TOTAL TELECOMMUNICATION SERVICES					6,182,322		6,081,347		5.59	%
UTILITIES		2,000.00	AMERIGAS PARTNERS LP UNIT		79,520		84,560
		15,000.00	COMPANHIA DE SANEAMENTO SP		476,428		590,250
		2,500.00	DTE ENERGY CO COM		109,837		120,425
		37,500.00	DUKE ENERGY CORP COM		566,469		629,250
		12,500.00	ENERSIS		236,672		248,625
		8,600.00	NISOURCE INC COM		128,636		140,180
		2,500.00	ONEOK INC NEW COM		107,538		122,850
		9,500.00	SOUTHERN CO COM		326,330		328,320
TOTAL UTILITIES					2,031,430		2,264,460		2.08	%
INVESTMENT IN AFFILIATE		1,000.00	BROYHILL INDUSTRIES, INC. 2,3		442,180		508,579		0.47	%
TOTAL INVESTMENTS IN COMMON STOCKS				$	32,394,024	$	35,640,430		32.74	%

29

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010

							Percent
	Contracts				Market		of Net
Company Name	Held		Cost		Value		Assets
CALL OPTIONS:
CBOE JUMBO VOLATILITY INDEX CALL OPTION, $27.50 EXP 5/19/103		500	$	58,757	$	52,500
CBOE JUMBO VOLATILITY INDEX CALL OPTION, $30 EXP 6/16/103		500		59,507		72,500
ISHARES BARCLAYS 20+ YEAR TREAS BOND CALL OPTION, $90 EXP 6/19/103		250		28,754		63,500
ISHARES BARCLAYS 20+ YEAR TREAS BOND CALL OPTION, $95 EXP 9/18/103		250		18,003		35,000
				165,021		223,500		0.21	%
PUT OPTIONS:
POWERSHARES QQQ PUT OPTION, $42 EXP 6/19/103		50.00		6,951		850
SPDR TRUST PUT OPTION, $104 EXP 6/19/103		50.00		16,851		3,200
TOTAL PUT OPTIONS				23,802		4,050		0.00	%
TOTAL INVESTMENTS IN CALL AND PUT OPTIONS			$	188,823	$	227,550		0.21	%

30

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010

							Percent
	Shares				Market		of Net
Company Name	Held		Cost		Value		Assets
PREFERRED STOCKS:
COMCAST CORP 7%		10,000.00	$	228,661	$	252,900
FREEPORT-MCMORAN COPPER & GOLD		2,500.00		224,823		266,200
LEARNINGSTATION.COM2,3		1,224,661.00		500,000		-
ODYSSEY 8.125% PREFERRED		1,000.00		25,095		25,250
TOTAL INVESTMENTS IN PREFERRED STOCKS			$	978,579	$	544,350	0.50%

31

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

April 30, 2010

				Market		Percent of
	Company Name	Cost		Value		Net Assets
Short-term Investments	Blackrock Liquidity Funds Fedfund Institutional Class	$	12,898,408	$	12,898,408		11.85	%
TOTAL INVESTMENTS - MARKET VALUE				$	108,491,768		99.66	%
TOTAL OTHER ASSETS IN EXCESS OF LIABILITIES					367,812		0.34	%
TOTAL NET ASSETS				$	108,859,580		100.00	%

1In default

2Market value determined by the Fund's Board of Directors

3Non-income producing security

32

BMC FUND, INC.

SCHEDULE OF OPEN WRITTEN OPTION CONTRACTS (Unaudited)

April 30, 2010

										Percent
	Contracts						Market			of Net
Company Name	Held			Cost			Value			Assets
CALL OPTIONS:
3M COMPANY CALL OPTION, $85 EXP 7/17/103		(25.00	)		(8,200	)		(13,750	)
ATHENAHEALTH  CALL OPTION, $50 EXP 6/19/103		(20.00	)		(2,310	)		(200	)
CATERPILLAR CALL OPTION, $65 EXP 5/22/103		(25.00	)		(3,200	)		(10,125	)
CISCO SYSTEMS CALL OPTION, $28 EXP 7/17/103		(18.00	)		(1,080	)		(1,368	)
COMPANHIA DE BEBIDAS CALL OPTION, $105 EXP 6/19/103		(25.00	)		(2,824	)		(2,375	)
CONOCO PHILLIPS CALL OPTION, $60 EXP 6/19/103		(10.00	)		(600	)		(1,440	)
DEERE & CO CALL OPTION, $60 EXP 6/19/103		(25.00	)		(5,574	)		(7,400	)
EMERSON ELECTRIC CALL OPTION, $45 EXP 6/19/103		(25.00	)		(3,200	)		(18,250	)
GENERAL ELECTRIC CALL OPTION, $18 EXP 6/19/103		(20.00	)		(800	)		(2,740	)
INTEL CORP CALL OPTION, $25 EXP 6/19/103		(10.00	)		(380	)		(170	)
INTEL CORP CALL OPTION, $24 EXP 7/17/103		(25.00	)		(750	)		(1,575	)
INTERNATIONAL BUSINESS MACHINES CALL OPTION, $140 EXP 7/17/103		(10.00	)		(1,930	)		(980	)
JM SMUCKER CALL OPTION, $65 EXP 6/10/103		(10.00	)		(640	)		(600	)
MARKET VECTORS GOLD MINERS ETF CALL OPTION, $49 EXP 5/22/103		(30.00	)		(2,909	)		(8,130	)
PEABODY ENERGY CALL OPTION, $55 EXP 6/19/103		(20.00	)		(2,020	)		(1,000	)
PETROLEO BRASILEIRO CALL OPTION, $46 EXP 6/19/103		(20.00	)		(1,879	)		(1,900	)
PETROLEO BRASILEIRO CALL OPTION, $49 EXP 10/16/103		(10.00	)		(1,600	)		(1,700	)
WALTER ENERGY CALL OPTION, $100 EXP 5/22/103		(30.00	)		(8,649	)		(1,050	)
WESTERN DIGITAL CALL OPTION, $44 EXP 7/17/103		(20.00	)		(2,959	)		(4,100	)
TOTAL CALL OPTIONS – LIABILITIES					(51,504	)		(78,853	)		-0.07	%
PUT OPTIONS:
TOYOTA MOTORS PUT OPTION, $60 EXP 7/17/103		(20.00	)		(4,560	)		(400	)
US OIL FUND LP PUT OPTION, $30 EXP 1/22/113		(250.00	)		(64,247	)		(21,250	)
TOTAL PUT OPTIONS – LIABILITIES					(68,807	)		(21,650	)		-0.02	%
TOTAL CALL AND PUT OPTIONS - LIABILITIES				$	(120,311	)	$	(100,503	)		-0.09	%

33

Item. 2.  Code of Ethics.

N/A

Item 3.  Audit Committee Financial Expert.

N/A

Item 4.  Principal Accountant Fees and Services.

N/A

Item 5. Audit Committee of Listed Registrants.

N/A

Item 6. Schedule of Investments.

Included as a part of the report to shareholders filed under Item 1.

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

N/A

Item 8.  Portfolio Managers of Closed-End Investment Companies.

N/A

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None

Item 10.  Submission of Matters to a Vote of Security Holders.

N/A

Item 11.  Controls and Procedures.

Within the 90 days prior to the date of this report, the Registrant's management carried out an evaluation, under the supervision and with the participation of Registrant's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Registrant's disclosure controls and procedures pursuant to Rule 30a-3(b) of the Investment Company Act of 1940.  Based upon the evaluation, the Chief Executive Officer and Chief Financial Officer concluded as of a date within 90 days of the filing of this report that the Registrant's disclosure  controls and procedures are effective in timely alerting them to material information relating to the Registrant required to be included in the Registrant's periodic SEC filings.

There were no significant changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter  of the period covered by the report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12.  Exhibits.

(a)(1)  N/A

(a)(2)  Certifications.

SIGNATURES

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.

BMC Fund, Inc.

By	/s/ Boyd C. Wilson, Jr.
	Boyd C. Wilson, Jr.
	Vice President and
	Chief Financial Officer
Date:	June 22, 2010

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/ Paul H. Broyhill
	Paul H. Broyhill
	Chairman and Chief Executive Officer
Date:	June 22, 2010

By	/s/ Boyd C. Wilson, Jr.
	Boyd C. Wilson, Jr.
	Vice President and
	Chief Financial Officer

Date: June 22, 2010