BMC Fund NCSRS 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, 2011

Date of reporting period: April 30, 2011

Item 1. Report to Stockholders.

BMC FUND, INC.

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION

(UNAUDITED)

Six Months Ended April 30, 2011

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	13

Additional Information	17

Financial Highlights	18

Schedule of Investments	19

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, 2011, 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, 2011, the Company paid the following dividends per share:

December 10, 2010 to shareholders of record November 25, 2010	$	0.25
March 10, 2011 to shareholders of record February 25, 2011		0.25

Total	$	0.50

The attached Schedule of Investments is a listing of the entire Company’s diversified securities at April 30, 2011, with a total market value of $114,718,450.

Paul H. Broyhill, Chief Executive Officer

M. Hunt Broyhill, President

BMC FUND, INC.

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

April 30, 2011

ASSETS AT MARKET VALUE:
Investment securities (cost - $107,185,044)	$	114,718,450
Cash and short-term investments		91,594
Receivables, accrued interest and dividends		177,218
Other assets		64,868

Total assets		115,052,130

LIABILITIES:
Call options written, at fair value (premiums received $745,200)		464,090
Accounts payable and accrued expenses		27,157
Accounts payable to affiliates		52,469

Total liabilities		543,716

NET ASSETS AT APRIL 30 2011 - EQUIVALENT TO $23.21 PER SHARE ON 4,933,281 SHARES OF COMMON STOCK OUTSTANDING	$	114,508,414

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		76,728,588
Undistributed net investment income		464,537
Realized losses on investments		(360,344	)
Undistributed nontaxable gain		5,194,714
Unrealized appreciation of investments		7,814,514

NET ASSETS APPLICABLE TO COMMON STOCK OUTSTANDING	$	114,508,414

See accompanying notes to financial statements.

BMC FUND, INC.

STATEMENT OF OPERATIONS (Unaudited)

Six Months Ended April 30, 2011

INVESTMENT INCOME:
Income:
Interest - fixed income	$	115,142
Other interest and dividends		1,850,733
Equity in earnings of wholly-owned subsidiary		(670	)

Total income		1,965,205

Expenses:
Legal and professional fees		30,988
Directors' fees (Note 7)		30,500
Investment expense		801
Salaries		331,533
Property and liability insurance		25,973
Depreciation expense		2,086
Taxes and licenses		45,122
Rent		12,285
Office supplies and expense		28,003
Dues and subscriptions		28,625
Travel and entertainment		4,784

Total expenses		540,700

Investment income, net		1,424,505

REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain (loss) from investments sold		(360,344	)
Change in unrealized appreciation of investments for the period		5,335,118

Net gain on investments		4,974,774

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,399,279

See accompanying notes to financial statements.

BMC FUND, INC.

STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)

Six Months Ended April 30, 2011 and 2010

	2011			2010

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income	$	1,424,505		$	1,166,655
Realized gains (losses) from investment securities sold		(360,344	)		(864,938	)
Change in unrealized appreciation (depreciation) of investments for the year		5,335,118			6,175,150

Net increase (decrease) in net assets resulting from operations		6,399,279			6,476,867

Distributions to shareholders from:
Net realized gain on investment securities		(143,667	)		-
Net investment income		(1,339,120	)		(1,011,133	)
Retained earnings prior to becoming an investment company		(983,853	)		(1,208,843	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		3,932,639			4,256,891

NET ASSETS AT BEGINNING OF PERIOD		110,575,775			104,602,689

NET ASSETS AT END OF PERIOD (Including
undistributed net investment income: 2011 - $464,537, 2010 - $533,066)	$	114,508,414		$	108,859,580

See accompanying notes to financial statements.

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (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, 2011, the Company purchased and sold securities in the amount of $30,913,423 and $23,174,073 (excluding short-term investments and options), respectively.

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (Unaudited)

2.	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.

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 2006 and thereafter are subject to possible future examinations by tax authorities.

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.

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (Unaudited)

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

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.

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, 2011.

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	$	2,404,511		$	-	$	-	$	2,404,511
Mutual Funds
Bond Mutual Funds		20,040,036			-		-		20,040,036
Stock Mutual Funds		18,267,658			-		-		18,267,658
Other Investments
Limited Partnerships		-			-		15,593,671		15,593,671
Common Stocks
Common Stocks – Publicly Traded		42,979,610			-		-		42,979,610
Call Options		(182,345	)		-		-		(182,345	)
Put Options		(206,405	)		-		-		(206,405	)
Preferred Stocks		492,325			-		-		492,325
Short-term Investments		14,865,299			-		-		14,865,299
Total Investments	$	98,660,689		$	-	$	15,593,671	$	114,254,360

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (Unaudited)

SIGNIFICANT ACCOUNTING POLICIES (Continued)

The table below presents a reconciliation for the quarter ended April 30, 2011, for all Level 3 assets that are measured at fair value on a recurring basis.

					Realized &					Net
	Balance		Accrued		Unrealized			Net		Transfers			Balance
	as of		Discounts/		Gains &			Purchases/		in (out of)			as of
Level 3 Assets	10/31/2010		Premiums		Losses			Sales		Level 3			4/30/2011
Limited Partnerships	$	13,312,408	$	-	$	237,235		$	2,044,028	$	-		$	15,593,671
Common Stocks
Common Stocks - Affiliate		63,831		-		(670	)		-		(63,161	)		-
Total Investments	$	13,376,239	$	-	$	236,565		$	2,044,028	$	(63,161	)	$	15,593,671

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, 2011, were as follows:

Gross appreciation (excess of value over tax cost)	$	16,773,774
Gross depreciation (excess of tax cost over value)		(9,240,368	)
Net unrealized appreciation	$	7,533,406
Cost of investments for income tax purposes	$	107,185,044

4.	CALL OPTIONS WRITTEN

As of April 30, 2011, portfolio securities valued at $10,195,710 were held in escrow by the custodian as cover for call options written by the Company.

Transactions in options written during the six months ended April 30, 2011 were as follows:

	Number of Contracts			Premiums Received
Options outstanding at October 31, 2010		500		$	46,566
Options written		1,299			218,426
Options terminated in closing purchase transactions		(135	)		(20,231	)
Options expired		(398	)		(47,671	)
Options exercised		(192	)		(20,403	)
Options outstanding at April 30, 2011		1,074		$	176,687

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (Unaudited)

5.	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.

On December 10, 2010, a distribution of $0.25 per share was paid to shareholders of record on November 25, 2010.

On March 10, 2011, a distribution of $0.25 was paid to shareholders of record on February 25, 2011.

The tax character of distributions paid for the six months ended April 30, 2011 is as follows:

Distributions paid from:
Ordinary income	$	1,482,787
Retained earnings prior to becoming an investment company		983,853
Total	$	2,466,640

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, 2011 reflects $464,537 of undistributed net investment income under generally accepted accounting principles.

6.	LINE OF CREDIT

On April 22, 2010 (renewed April 21, 2011), 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, 2011, the Company had no borrowings from this line of credit, which expires on April 21, 2013.

7.	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.

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (Unaudited)

8.	RELATED PARTIES

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, 2011 amounted to $12,285. 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, 2011 was $52,469.

9.	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, 2011.

10.	SUPPLEMENTAL PROXY INFORMATION AND 2011 ANNUAL MEETING OF SHAREHOLDERS

The Annual Meeting of Shareholders of BMC Fund, Inc. was held on March 5, 2011 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	2012
M. Hunt Broyhill	1 year	2012
Paul H. Broyhill	1 year	2012
R. Donald Farmer	1 year	2012
Robert G. Fox, Jr.	1 year	2012
Jan E. Gordon	1 year	2012
Gene A. Hoots1	1 year	2012
Brent B. Kincaid	1 year	2012
Michael G. Landry2	1 year	2012
John S. Little	1 year	2012
L. Glenn Orr, Jr.	1 year	2012
Allene B. Stevens	1 year	2012

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

1Mr. Hoots resigned as a director effective April 28, 2011.

2Mr.Landry did not seek re-election as a director. He resigned his position as Vice President and Chief Investment Officer of the Fund effective March 5, 2011.

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (Unaudited)

11.	SUPPLEMENTAL INFORMATION

Paul H. Broyhill, Chairman and Chief Executive Officer, M. Hunt Broyhill, President, Christopher R. Pavese, CFA, Chief Investment Officer, 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. Mr. Hunt Broyhill has had such responsibility since 2001. Mr. Hunt Broyhill has 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.

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (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 (83) 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)	Shepherd Street Equity Fund (1998-2008)

M. Hunt Broyhill (47) 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

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (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 (87) 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 (59) 3075 Rolling Woods Drive Palm Harbor, FL 34683	Director	Since 2001	Retired; former election assistant, Pinellas County, FL Supervisor of Elections (1992-2005)	None

Allene B. Stevens (89) 153 Hillhaven Place SE Lenoir, NC 28645	Director	Since 1983	Private Investor

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (Unaudited)

Directors Who Are Not Interested Persons

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

R. Donald Farmer (64) 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. (61) 6525 Robin Hollow Drive Mint Hill, NC 28227	Director	Since 2008	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
Brent B. Kincaid (80) 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 (79) 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. (71) 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. (1995-present); Medical Properties Trust (2005-present)

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (Unaudited)

Other Executive Officers

Name, Address and Age	Positions Held with Fund	Term of Office and Length of Time Served	Principal Occupation During Past 5 Years	Other Directorships Held by Officer

Boyd C. Wilson, Jr. (58) 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 (53) 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

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2011 (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.

BMC FUND, INC.

FINANCIAL HIGHLIGHTS

Six Months April 30, 2011 (Unaudited), Years Ended October 31, 2010, 2009, 2008, 2007, 2006, 2005, 2004, and 2003, Seven Month Period Ended October 31, 2002, and the Year 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, 2011 (Unaudited), the years ended October 31, 2010, 2009, 2008, 2007, 2006, 2005, 2004, and 2003, the seven month period ended October 31, 2002, and the year 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.

	Six Months																											Seven
	Ended																											Months
	April 30,																											Ended
PER SHARE OPERATING	2011																											October 31,
PERFORMANCE	(Unaudited)			2010			2009			2008			2007			2006			2005			2004			2003			2002			2002

Net asset value, beginning of period	$	22.41		$	21.20		$	20.79		$	36.28		$	33.55		$	32.84		$	30.94		$	29.17		$	25.46		$	28.95		$	29.44
Net investment income		0.29			0.46			0.48			0.73			0.78			1.06			0.88			0.82			0.95			0.59			1.13
Net gains (losses) on investments		1.01			1.70			1.65			(10.98	)		4.25			2.43			2.48			2.08			3.76			(3.45	)		(0.30	)
Total from investment operations		1.30			2.16			2.13			(10.25	)		5.03			3.49			3.36			2.90			4.71			(2.86	)		0.83
Less distributions:
Dividends from net investment income		0.27			0.46			0.92			1.04			2.03			2.37			-			0.65			0.45			0.56			0.84
Distributions from capital gains		0.03			-			-			1.42			0.27			0.41			1.46			0.48			0.55			0.07			0.48
Distributions from retained earnings		0.20			0.49			0.80			-			-			-			-			-			-			-			-
P. B. Realty, Inc. Spin-off		-			-			-			2.78			-			-			-			-			-			-			-
Total distributions		0.50			0.95			1.72			5.24			2.30			2.78			1.46			1.13			1.00			0.63			1.32
Net asset value, end of period	$	23.21		$	22.41		$	21.20		$	20.79		$	36.28		$	33.55		$	32.84		$	30.94		$	29.17		$	25.46		$	28.95

Per share market value, end of period1	$	18.00		$	18.00		$	16.75		$	26.00		$	26.00		$	26.00		$	26.00		$	26.00		$	26.00		$	26.00		$	26.00

TOTAL INVESTMENT RETURN2		14.44	%*		12.00	%		12.72	%		(39.42	) %		19.35	%		13.40	%		12.95	%		11.14	%		18.12	%		(18.85	)%*		3.20	%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (in thousands)	$	114,508		$	110,576		$	104,603		$	102,574		$	178,975		$	165,500		$	162,027		$	152,623		$	143,910		$	125,596		$	142,811
Ratio of expenses to average net assets3		0.96	%*		1.11	%		1.18	%		1.02	%		0.75	%		0.73	%		0.60	%		0.73	%		0.73	%		0.71	%*		0.62	%
Ratio of net investment income to average net assets3		2.54	%*		2.11	%		2.40	%		2.37	%		2.26	%		3.20	%		2.77	%		2.70	%		3.52	%		3.78	%*		3.91	%
Portfolio turnover rate		20.75	%		38.08	%		69.62	%		67.44	%		51.23	%		48.22	%		57.54	%		40.10	%		52.51	%		31.95	%		67.18	%

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

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

3 Average is computed on a quarterly basis.

* Annualized

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Unaudited)

April 30, 2011

		Coupon									Percent
		Interest		Maturity	Face				Market		of Net
Debt Issuer		Rate		Date	Amount		Cost		Value		Assets


FIXED INCOME:
OAKWOOD HOMES CORP	1,2,3	7.875	%	3/1/2004	$	1,000,000	$	948,174	$	-
LEHMAN BROTHERS HLDGS NIKKEI INDEX	1,2,3	0.000	%	9/29/2008		3,000,000		3,000,000		-
LEHMAN BROTHERS HLDGS EAFE INDEX	1,2,3	0.000	%	11/15/2008		1,000,000		1,000,000		-
LEHMAN BROTHERS HLDGS MEDIUM TERM NOTE	1,2,3	0.000	%	3/15/2011		2,500,000		2,500,000		-
AMKOR TECHNOLOGY		2.500	%	5/15/2011		250,000		249,150		248,750
EASTMAN KODAK		7.250	%	11/15/2013		250,000		238,178		246,250
FED REPUBLIC OF BRAZIL		12.500	%	1/5/2016		1,466,706		1,657,640		1,909,511

TOTAL INVESTMENTS IN FIXED INCOME					$	9,466,706	$	9,593,142	$	2,404,511	2.10%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

							Percent
	Shares				Market		of Net
Company Name	Held		Cost		Value		Assets

MUTUAL FUNDS:
BOND MUTUAL FUNDS:
AMERICAN CENTY HIGH -YIELD INV		144,179.49	$	900,000	$	904,005
ARTIO GLOBAL HIGH INCOME FUND A		81,892.63		900,000		904,095
CALAMOS CONVERTIBLE OPPORTUNITIES & INCOME FUND		30,000.00		272,656		406,500
DOUBLELINE TOTAL RETURN BOND FUND N		18,148.82		200,000		199,819
FAIRHOLME FOCUSED INCOME FUND		23,518.34		250,000		265,757
FIDELITY US BOND INDEX		48,088.23		499,156		548,687
FLAHERTY & CRUMRINE PREFERRED INCOME FUND		11,833.00		87,440		150,397
FRANKLIN TEMPLETON HARD CURRENCY		10,030.09		100,000		104,313
HARBOR COMMODITY REAL RETURN ST INSTL		63,484.72		516,122		562,475
HARBOR BOND FUND INSTITUTIONAL CL		37,052.73		462,048		457,231
ISHARES BARCLAYS 3-7 YR TREASURY BOND FUND		8,750.00		981,443		1,013,162
ISHARES IBOXX $ INVESTMENT GRAD CORP BOND FUND		7,500.00		792,634		828,525
JANUS TRITON FUND T SHARES		14,111.01		150,000		261,900
LOOMIS SAYLES BOND FUND INSTITUTIONAL SHARES		86,518.62		1,112,500		1,296,914
LOOMIS SAYLES GLOBAL BOND FUND		30,450.67		500,000		527,710
MANNING & NAPIER PRO BLEND CONSERVATIVE TERM S		9,745.13		130,000		130,000
METROPOLITAN WEST HIGH YIELD BOND M		81,818.18		900,000		900,818
METROPOLITAN WEST TOTAL RETURN		9,699.81		103,400		101,751
PAX WORLD HIGH YIELD BOND FUND INDIVIDUAL INV		114,181.03		900,000		903,172
PERMANENT PORTFOLIO		2,976.58		136,000		148,025
PIMCO COMMODITY REAL RETURN STRATEGY CLASS A		120,754.48		950,000		1,212,375
PIMCO CORPORATE INCOME FUND COM		12,500.00		153,357		216,875
PIMCO REAL RETURN INSTITUTIONAL SHARES		86,880.97		1,000,000		1,019,983
PIMCO REAL RETURN CLASS D		10,290.26		116,509		120,808
PIMCO GLOBAL ADVANTAGE STRATEGY BOND FUND INSTIT SHARES		42,955.33		500,000		499,141
PIMCO GLOBAL MULTI-ASSET FUND CLASS D		66,391.40		735,000		823,253
PIMCO TOTAL RETURN FUND INSTITUTIONAL SHARES		122,128.55		1,249,375		1,347,078
POWERSHARES PREFERRED		5,000.00		66,915		72,200
TCW TOTAL RETURN BOND I		20,100.50		200,000		199,799
TEMPLETON EMERGING MARKETS INCOME FUND		25,000.00		337,317		429,500
TEMPLETON GLOBAL INCOME FUND		60,000.00		538,362		657,000
THIRD AVENUE FOCUSED CREDIT FUND INVESTOR		22,789.43		250,000		265,953
VANGUARD INTERMEDIATE-TERM INVESTMENT-GRADE AD		137,375.29		1,150,552		1,368,258
WELLS FARGO ADVANTAGE HIGH INCOME INV		118,577.08		900,000		903,557
WISDOM TREE DREYFUS BRAZILIAN REAL		10,000.00		261,805		289,000
TOTAL BOND MUTUAL FUNDS				18,302,591		20,040,036		17.50	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

							Percent
	Shares				Market		of Net
Company Name	Held		Cost		Value		Assets

MUTUAL FUNDS:
STOCK MUTUAL FUNDS:
U.S. LARGE CAP EQUITIES
Large Cap Blend
FAIRHOLME FUND		13,766.52		500,000		476,459		0.42	%

Large Cap Growth
TECHNOLOGY SELECT SECTOR SPDR		6,000.00		155,730		160,440		0.14	%

Large Cap Value
FINANCIAL SELECT SECTOR SPDR		12,000.00		197,730		196,560		0.17	%

TOTAL U.S. LARGE CAP EQUITIES				853,460		833,459		0.73	%

INTERNATIONAL EQUITIES
Utilities
ISHARES S&P GLOBAL UTILITIES		8,000.00		363,027		384,640		0.34	%

Foreign Large Blend
LONGLEAF PARTNERS FDS INTERNATIONAL		10,012.52		160,000		161,202
SPDR S&P INTERNATIONAL DIVIDEND		3,000.00		171,015		191,970
VANGUARD INTERNATIONAL GROWTH FUND ADMIRAL SHARES		2,728.76		150,000		183,864
VANGUARD TOTAL INTERNA STOCK INDEX INV SHARES		7,075.47		105,000		120,849
				586,015		657,885		0.57	%

Foreign Large Growth
WISDOMTREE TRUST INDIA EARNINGS		12,000.00		289,619		298,800		0.26	%

Foreign Large Value
ISHARES INC MSCI CANADA INDEX		10,000.00		202,749		337,000
OAKMARK INTERNATIONAL FUND I		10,063.26		175,000		210,221
THORNBURG INTERNATIONAL VALUE A		4,809.34		140,000		148,272
				517,749		695,493		0.61	%

Diversified Emerging Markets
ISHARES TR MSCI EMERGING MARKETS INDEX		10,000.00		393,469		500,000
WESTERN ASSET EMERGING MARKETS DEBT PORTFOLIO		10,000.00		187,664		188,100
				581,133		688,100		0.60	%

Diversified Asia Pacific
ISHARES MSCI PAC EX-JAPAN		10,000.00		297,900		505,600		0.44	%

Japan Stock
WISDOMTREE TRUST JAPAN SMALLCAP DIVIDEND		2,500.00		94,526		107,600
WISDOMTREE JAPAN HEDGED EQUITY		2,500.00		83,714		91,875
				178,240		199,475		0.17	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

						Percent
		Shares		Market		of Net
Company Name		Held	Cost	Value		Assets

MUTUAL FUNDS:
STOCK MUTUAL FUNDS: (continued)
Asia Ex-Japan Stock					��
ISHARES INC MSCI HONG KONG INDEX		25,000.00	273,430	484,000
ISHARES INC MSCI SOUTH KOREA INDEX		5,000.00	294,430	344,850
ISHARES INC MSCI SINGAPORE INDEX		10,000.00	120,750	144,500
ISHARES INC MSCI TAIWAN INDEX		20,000.00	285,028	320,000
TEMPLETON DRAGON FD COM		11,000.00	318,691	346,500
			1,292,329	1,639,850		1.43	%

Latin America Stock
ISHARES INC MSCI BRAZIL		6,000.00	294,472	466,320		0.41	%

TOTAL INTERNATIONAL EQUITIES			4,400,484	5,536,163		4.83	%

SPECIALTY FUNDS
Energy
US OIL FUND ETF	3	5,000.00	189,675	225,750		0.20	%

Banks
SPDR KBW REGIONAL BANKING		10,000.00	272,219	267,400		0.23	%

Diversified Financials
POWERSHARES FINANCIAL PREFERRED		20,000.00	363,538	365,800		0.32	%

Pharmaceuticals & Biotechnology
ISHARES TR NASDAQ BIOTECHNOLOGY INDEX		1,500.00	135,832	161,175		0.14	%

Utilities
REAVES UTILITY INCOME FUND		5,000.00	95,337	118,750
SECTOR SPDR TR SBI INT-UTILITIES		18,000.00	565,543	596,880
			660,880	715,630		0.62	%

Large Cap Blend
POWERSHARES DIVIDEND ACHIEVERS		10,000.00	142,450	152,900
SOUND SHORE FUND		9,780.32	325,000	337,030
T. ROWE PRICE PERSONAL STRAT GROWTH		9,661.84	200,000	240,000
WISDOMTREE LARGECAP DIVIDEND		5,000.00	212,308	250,900
YACKTMAN FUND INC		17,062.49	280,000	309,172
			1,159,758	1,290,002		1.13	%

Financial
FRANKLIN INCOME FUND ADVIS		119,047.62	250,000	272,619		0.24	%

Natural Resources
SECTOR SPDR TR SBI INT-ENERGY		3,000.00	209,623	241,437		0.21	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

							Percent
		Shares				Market	of Net
Company Name		Held		Cost		Value	Assets

MUTUAL FUNDS:
STOCK MUTUAL FUNDS: (continued)
Precious Metals
ISHARES SILVER TRUST	3	25,000.00		344,625		1,172,000
MARKET VECTORS GOLD MINERS ETF		28,000.00		1,245,067		1,741,600
SPDR GOLD SHARES	3	10,000.00		969,550		1,523,700
				2,559,242		4,437,300	3.88	%

Conservative Allocation
VANGUARD WELLESLEY INCOME INV		19,860.85		418,780		450,047	0.39	%

Moderate Allocation
FPA FUNDS TR FPA CRESCENT		18,930.59		505,000		543,497
MERGER FD SH BEN INT		10,069.23		160,000		163,625
				665,000		707,122	0.62	%

World Allocation
BLACKROCK GLOBAL ALLOCATION INV A		12,716.17		250,000		263,861
IVY ASSET STRATEGY FUND I		72,445.42		1,979,197		1,977,036
WELLS FARGO ADVANTAGE ASSET ALLOC ADM		40,816.33		500,000		522,857
				2,729,197		2,763,753	2.41	%

TOTAL SPECIALTY FUNDS				9,613,744		11,898,036	10.39	%

TOTAL STOCK MUTUAL FUNDS				14,867,688		18,267,658	15.95	%

TOTAL INVESTMENTS IN MUTUAL FUNDS			$	33,170,279	$	38,307,694	33.45	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

				Market		Percent of
Company Name		Cost		Value		Net Assets

OTHER INVESTMENTS:

LIMITED PARTNERSHIPS:
DEL MAR INDEX OPPORTUNITIES ONSHORE FUND	2	$	1,500,000	$	1,807,991
ELLIOTT ASSOCIATES LP	2		2,000,000		2,726,859
GREENLIGHT MASTERS QUALIFIED LP	2		2,500,000		2,623,914
LMC COMPASS FUND LP	2		1,500,000		2,062,897
RD LEGAL FUNDING PARTNERS LP	2		909,589		1,269,434
RIVERNORTH CAPITAL PARTNERS	2		2,000,000		1,620,323
STARK INVESTMENTS LP	2		608,669		1,853,019
STARK STRUCTURED FINANCE ONSHORE FUND	2		671,300		735,826
THE ECLECTICA FUND LP	2		1,000,000		858,117
WALNUT INVESTMENT PARTNERS	2		235,567		35,291
TOTAL LIMITED PARTNERSHIPS			12,925,125		15,593,671		13.62	%

WARRANTS:
CREDIT SUISSE 24 MONTH COMMODITY CURRENCY BASKET	3		58,400		-
TOTAL WARRANTS			58,400		-		0.00	%

TOTAL OTHER INVESTMENTS		$	12,983,525	$	15,593,671		13.62	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

									Percent
Sectors and	Shares						Market		of Net
Industries	Held		Company Name		Cost		Value		Assets

COMMON STOCKS:
CONSUMER DISCRETIONARY
Consumer Durables & Apparel		10,000.00	GARMIN LTD ORD		$	313,824	$	342,300
		20,000.00	NINTENDO	3		676,450		595,800
						990,274		938,100		0.82	%

Consumer Services		15,000.00	BRIDGEPOINT EDUCATION INC	3		233,763		263,250
		7,500.00	COMPANHIA DE BEBIDAS DAS A			197,325		244,350
		5,000.00	DEVRY INC			194,152		264,500
		10,000.00	ITT EDUCATIONAL SERVICES	3		546,822		717,400
						1,172,062		1,489,500		1.30	%

Retailing		5,000.00	BEST BUY INC COM			173,475		156,100
		3,000.00	DOMINOS PIZZA INC COM			53,278		55,710
		1,500.00	PANERA BREAD CO CL A			158,138		181,665
						384,891		393,475		0.34	%

Automobiles & Components		5,000.00	FORD MTR CO DEL COM			74,675		77,350
		8,000.00	VISTEON CORP COM			570,034		539,440
						644,709		616,790		0.54	%

TOTAL CONSUMER DISCRETIONARY						3,191,936		3,437,865		3.00	%

CONSUMER STAPLES
Food & Staples Retailing		10,000.00	CVS CAREMARK CORP COM			312,814		362,200
		7,500.00	FAMILY DLR STORES INC COM			384,343		406,575
		15,000.00	WAL MART STORES INC COM			750,223		824,700
						1,447,380		1,593,475		1.39	%

Food, Beverage & Tobacco		12,500.00	ALTRIA GROUP INC			225,437		335,500
		9,400.00	DIAGEO P L C SPON ADR NEW			586,834		764,878
		5,000.00	GENERAL MLS INC COM			169,737		192,900
		200.00	HERSHEY CO COM			8,819		11,542
		5,000.00	KRAFT FOODS INC CL A			153,450		167,950
		8,000.00	LORILLARD INC			548,820		852,000
		10,000.00	NESTLE S A SPONSORED ADR			396,900		622,000
		15,000.00	PHILIP MORRIS INTL INC COM			627,562		1,041,600
		2,000.00	SMUCKER J M CO COM NEW			121,939		150,140
						2,839,498		4,138,510		3.61	%

Household & Personal Products		3,000.00	PROCTER & GAMBLE CO COM			195,916		194,700		0.17	%

TOTAL CONSUMER STAPLES						4,482,794		5,926,685		5.18	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

									Percent
Sectors and	Shares						Market		of Net
Industries	Held		Company Name		Cost		Value		Assets

COMMON STOCKS:
ENERGY		10,000.00	ATLANTIC POWER CORP.			142,030		151,800
		5,000.00	BP PRUDHOE BAY ROYALTY TRU			426,267		582,650
		3,000.00	BUCKEYE PARTNERS L P UNIT			146,923		195,180
		10,000.00	CONOCOPHILLIPS COM			521,465		788,900
		11,000.00	CPFL ENERGIA S A SPONSORED			590,654		972,840
		5,000.00	DOMINION RESOURCES BLACK W			80,175		62,450
		500.00	ENCANA CORP COM			13,161		16,765
		10,500.00	ENERGY TRANSFER EQUITY LP			249,388		482,685
		11,500.00	ENERGY TRANSFER PRTNRS LP			494,758		624,450
		5,000.00	ENSCO INTL			246,379		297,850
		16,440.00	ENTERPRISE PRODS PARTN COM			422,647		711,359
		6,004.00	EXXON MOBIL CORP COM			453,624		528,232
		7,000.00	KINDER MORGAN ENERGY UT LT			408,363		541,240
		191.00	KINDER MORGAN MANAGEMENT L	3		7,936		13,022
		103,326.00	KINDER MORGAN MGMT MGMT FR	3		4		-
		7,000.00	KNIGHTSBRIDGE TANKERS ORD			165,626		156,730
		15,000.00	LINN ENERGY LLC			270,792		605,700
		12,500.00	MARKWEST ENERGY PARTNERS L			159,043		637,375
		10,000.00	MLP & STRATEGIC EQUITY FUN			138,072		178,401
		4,000.00	NOBLE CORP NEW COMMON			142,412		172,040
		3,000.00	ONEOK PARTNERS LP			155,009		256,620
		5,000.00	PENN WEST ENERGY TRUST			90,857		128,050
		4,000.00	PETROLEO BRASILEIRO SA SPO			153,427		149,320
		5,000.00	PLAINS ALL AMERICAN PIPELN			245,274		321,200
		5,000.00	SEADRILL LIMITED SHS			178,115		178,250
		5,000.00	TARGA RESOURCES PARTNERS,			134,173		175,700
		8,000.00	TOTAL S A SPONSORED ADR			415,292		513,840
		9,000.00	TRANSMONTAIGNE PARTNERS LP			248,755		324,540
		3,000.00	TRANSOCEAN INC NEW SHS			209,037		218,250
		6,000.00	VALERO ENERGY CORP NEW COM			149,954		169,800
TOTAL ENERGY						7,059,612		10,155,239		8.87	%

FINANCIALS
Banks		2,500.00	BANCO BRANDESCO SA			48,873		50,575
		5,659.00	CAPITOL FEDERAL FINANCIAL			63,335		64,003
						112,208		114,578		0.10	%

Diversified Financials		3,000.00	BERKSHIRE HATHAWAY INC CL B	3		218,700		249,900
		10,000.00	GLADSTONE CAPITAL CORP			109,968		113,600
		2,500.00	NYSE EURONEXT			76,995		100,125
						405,663		463,625		0.40	%

Financial		3,000.00	AMERICAN EXPRESS CO COM			132,042		147,240
		6,000.00	ANNALY CAPITAL MGMT INC			106,181		107,040
		12,000.00	ANWORTH MORTGAGE ASSET COM			81,060		86,160
		25,000.00	CHIMERA INVESTMENT CORP			101,125		101,250
		3,000.00	FIFTH ST FINANCE CORP COM			41,103		39,990
		2,000.00	IBERIABANK CORP			115,213		120,020
		20,000.00	PROSPECT CAPITAL CORP COM			241,426		242,200
						818,150		843,900		0.74	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

Percent

Sectors and

Market

of Net

Industries

Held

Company Name

Cost

Value

Assets

COMMON STOCKS:

Real Estate	3,000.00	HCP INC		111,792	118,860
	35,000.00	MEDICAL PPTYS TR INC COM		370,003	431,900
	10,000.00	PLUM CREEK TIMBER CO COM		413,472	430,900
	10,000.00	POTLATCH		361,095	386,600
	2,000.00	VENTAS INC		91,107	111,860
				1,347,469	1,480,120	1.29	%

TOTAL FINANCIALS				2,683,490	2,902,223	2.53	%

HEALTH CARE
Health Care Equipment & Services	3,000.00	AMEDISYS INC COM	3	97,930	99,960
	2,000.00	AMERISOURCEBERGEN CORP COM		57,550	81,280
	10,000.00	CAREFUSION CORP	3	232,217	293,700
	50.00	LABORATORY CORP AMER HLDGS	3	3,536	4,824
	2,900.00	MEDTRONIC INC COM		156,441	121,075
	5,500.00	VARIAN MEDICAL SYSTEMS	3	215,449	386,100
				763,123	986,939	0.86	%

Pharmaceuticals & Biotechnology	2,000.00	ABBOTT LABS COM		101,570	104,080
	5,500.00	AMGEN INC COM	3	293,069	312,675
	10,000.00	ASTRAZENECA PLC SPONS ADR		454,761	498,300
	15,000.00	BRISTOL MYERS SQUIBB COM		370,569	421,500
	6,000.00	CUBIST PHARMACEUTICALS	3	156,210	203,040
	10,000.00	GLAXOSMITHKLINE PLC SPONSO		306,136	436,600
	500.00	IMMUNOGEN INC COM	3	5,722	6,680
	12,500.00	JOHNSON & JOHNSON COM		772,602	821,500
	35,000.00	MERCK & CO INC COM		1,134,485	1,258,250
	52,500.00	PFIZER INC COM		947,379	1,100,925
	5,000.00	SANOFI AVENTIS SPONS ADR		178,574	197,600
	500.00	SEATTLE GENETICS INC COM	3	8,040	8,305
	2,500.00	TEVA PHARMACEUTICAL INDS ADR		125,712	114,325
				4,854,829	5,483,780	4.79	%

TOTAL HEALTH CARE				5,617,952	6,470,719	5.65	%

INDUSTRIALS
Capital Goods	3,000.00	EMBRAER SA ADR		99,154	97,440
	2,000.00	GENERAL DYNAMICS CORP COM		128,610	145,640
	2,000.00	GENERAL ELEC CO COM		39,685	40,900
	1,916.00	HUNTINGTON INGALLS	3	55,975	76,640
	11,500.00	NORTHROP GRUMMAN CORP		626,139	731,515
	2,000.00	RAYTHEON CO COM NEW		99,964	97,100
	1,500.00	SIEMENS A G SPONSORED ADR		185,953	218,910
	9,000.00	TEEKAY LNG PARTNERS LP		168,342	341,280
				1,403,822	1,749,425	1.53	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

						Percent
Sectors and	Shares				Market	of Net
Industries	Held	Company Name		Cost	Value	Assets

COMMON STOCKS:
Commercial Services & Supplies	4,000.00	PAYCHEX INC		124,098	130,840
	500.00	STERICYCLE INC COM	3	38,882	45,640
	500.00	WASTE MANAGEMENT INC DEL COM		17,412	19,730
				180,392	196,210	0.17	%

Transportation	2,000.00	NORFOLK SOUTHERN CORP COM		130,434	149,360	0.13	%

TOTAL INDUSTRIALS				1,714,648	2,094,995	1.83	%

INFORMATION TECHNOLOGY
Software & Services	28,500.00	MICROSOFT CORP COM		680,037	738,720
	6,000.00	ORACLE CORP COM		151,859	215,760
				831,896	954,480	0.83	%

Technology Hardware & Equipment	400.00	APPLE COMPUTER INC COM	3	135,266	140,052
	2,000.00	CANON INC ADR		87,641	94,340
	24,700.00	CISCO SYS INC COM		511,139	432,744
	5,500.00	CORNING INC COM		126,431	115,170
	25,000.00	DELL INC	3	360,653	386,750
	1,300.00	INTERNATIONAL BUS MACH COM		182,478	221,754
	2,000.00	WESTERN DIGITAL CORP COM	3	69,270.00	79,600.00
				1,472,878	1,470,410	1.28	%

Semiconductors & Semiconductor Equipment	2,500.00	AIXTRON SE		104,466	106,125
	1,000.00	FIRST SOLAR INC	3	151,892	139,570
	21,500.00	INTEL CORP COM		447,786	497,725
	4,000.00	XILINX INC COM		110,780	139,440
				814,924	882,860	0.77	%

TOTAL INFORMATION TECHNOLOGY				3,119,698	3,307,750	2.89	%

MATERIALS	3,000.00	ARCELOR MITTAL		108,016	111,210
	2,000.00	BUNGE LIMITED COM		137,990	150,880
	6,000.00	CAMECO CORP COM		187,554	176,880
	5,000.00	POSCO SPONSORED ADR		556,725	551,500
	2,000.00	SCHNITZER STL INDS CL A		132,880	124,140
TOTAL MATERIALS				1,123,164	1,114,610	0.97	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

							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 SPO		104,382		114,400
	3,000.00	AT&T CORP COM		84,046		93,360
	20,000.00	BT GROUP		397,175		661,200
	15,000.00	CHINA MOBILE LIMITED ADR		743,112		691,350
	15,000.00	FRANCE TELECOM SPONSORED A		390,091		351,600
	10,720.00	FRONTIER COMMUNICATIONS CO		83,228		88,654
	1,000.00	MILLICOM INTL CELLULAR		96,275		108,340
	25,000.00	PARTNER COMMUNICATIONS		398,034		483,750
	25,500.00	SK TELECOM LTD SPONSORED A		438,343		483,990
	3,000.00	TELECOM ARGENTINA SA		78,209		68,460
	25,000.00	TELECOMUICA DE SAO PAULO S		562,338		677,750
	19,500.00	TELEFONICA S A SPONSORED A		419,506		525,720
	25,000.00	VODAFONE GROUP		558,724		728,000
TOTAL TELECOMMUNICATION SERVICES				4,353,463		5,076,574	4.43	%

UTILITIES	2,000.00	AMERIGAS PARTNERS L P UNIT		79,520		96,160
	10,000.00	CLP HOLDINGS		75,321		82,265
	10,000.00	COMPANHIA ENERGETICA SP AD		174,849		208,700
	2,500.00	DTE ENERGY CORP COM		109,837		126,325
	32,500.00	DUKE ENERGY CORP COM		492,770		606,125
	2,500.00	ENERSIS		49,539		53,400
	2,500.00	NATIONAL GRID PLC SPON ADR		119,478		128,325
	2,500.00	ONEOK INC NEW COM		107,537		174,850
	5,000.00	PROGRESS ENERGY		222,425		237,250
	17,500.00	SOUTHERN CO COM		628,940		683,200
	5,000.00	TECO ENERGY INC COM		91,675		96,350
TOTAL UTILITIES				2,151,891		2,492,950	2.18	%

TOTAL INVESTMENTS IN COMMON STOCKS			$	35,498,648	$	42,979,610	37.53	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

								Percent
		Contracts				Market		of Net
Company Name		Held		Cost		Value		Assets

CALL OPTIONS:
ISHARES BARCLAYS 20+ YEAR TREAS BOND CALL OPTION, $100 EXP 9/17/11	3		500		60,262		38,500
SEATTLE GENETICS INC CALL OPTION, $17.50 EXP 9/17/11	3		5		884		1,090
TOTAL CALL OPTIONS					61,146		39,590		0.03	%

PUT OPTIONS:
ISHARES SILVER TRUST PUT OPTION, $40 EXP 7/16/11	3		250		38,599		35,750		0.03	%

TOTAL INVESTMENTS IN CALL AND PUT OPTIONS				$	99,745	$	75,340		0.07	%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)(Unaudited)

April 30, 2011

								Percent
		Shares				Market		of Net
Company Name		Held		Cost		Value		Assets

PREFERRED STOCKS:
CITIGROUP CAPITAL XI			10,500.00	$	245,745	$	237,825
COMCAST CORP 7%			10,000.00		228,661		254,500
LEARNINGSTATION.COM	2,3		1,224,661.00		500,000		-

TOTAL INVESTMENTS IN PREFERRED STOCKS				$	974,406	$	492,325	0.43%

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Concluded)(Unaudited)

April 30, 2011

				Market			Percent of
	Company Name	Cost		Value			Net Assets

Short-term Investments	MFB NI Treasury Money Market Fund	$	14,865,299	$	14,865,299			12.98	%

TOTAL INVESTMENTS - MARKET VALUE				$	114,718,450			100.18	%

TOTAL OTHER ASSETS IN EXCESS OF LIABILITIES					(210,036	)		-0.18	%

TOTAL NET ASSETS				$	114,508,414			100.00	%

1 In default

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

3 Non-income producing security

BMC FUND, INC.

SCHEDULE OF OPEN WRITTEN OPTION CONTRACTS (Unaudited)

April 30, 2011

											Percent
		Contracts						Market			of Net
Company Name		Held			Cost			Value			Assets

OPTIONS:
CALL OPTIONS:
AIXTRON SE CALL OPTION, $45 EXP 6/18/11	3		(15.00	)	$	(3,052	)	$	(900	)
AMEDISYS CALL OPTION, $40 EXP 6/18/11	3		(30.00	)		(4,004	)		(660	)
AMERICA MOVIL CALL OPTION, $60 EXP 8/20/11	3		(20.00	)		(2,809	)		(2,100	)
AMERICAN EXPRESS CALL OPTION, $48 EXP 10/22/11	3		(30.00	)		(5,864	)		(10,530	)
AMERISOURCEBERGEN CALL OPTION, $40 EXP 8/20/11	3		(20.00	)		(2,269	)		(4,500	)
APPLE INC CALL OPTION, $355 EXP 7/16/11	3		(4.00	)		(5,707	)		(5,400	)
BUNGE LTD CALL OPTION, $77.50 EXP 7/16/11	3		(20.00	)		(2,669	)		(2,900	)
CAMECO CORP CALL OPTION, $35 EXP 6/18/11	3		(50.00	)		(5,572	)		(500	)
CISCO SYSTEMS CALL OPTION, $23 EXP 7/16/11	3		(25.00	)		(1,911	)		(25	)
CORNING INC CALL OPTION, $24 EXP 8/20/11	3		(30.00	)		(1,844	)		(750	)
CUBIST PHARMACEUTICAL CALL OPTION, $26 EXP 5/21/11	3		(30.00	)		(3,254	)		(23,100	)
DOMINOS PIZZA CALL OPTION, $20 EXP 9/17/11	3		(20.00	)		(1,819	)		(1,400	)
ENSCO PLC CALL OPTION, $65 EXP 6/18/11	3		(20.00	)		(2,469	)		(1,300	)
FIRST SOLAR CALL OPTION, $170 EXP 9/17/11	3		(10.00	)		(10,084	)		(3,950	)
FORD MOTOR CO CALL OPTION, $18 EXP 9/17/11	3		(50.00	)		(1,923	)		(1,650	)
GENERAL MILLS CALL OPTION, $40 EXP 7/16/11	3		(30.00	)		(1,454	)		(1,800	)
ISHARES SILVER TRUST CALL OPTION, $50 EXP 7/16/11	3		(250.00	)		(40,576	)		(69,250	)
LORILLARD INC CALL OPTION, $110 EXP 9/17/11	3		(30.00	)		(5,528	)		(11,400	)
MILLICOM INTL CALL OPTION, $110 EXP. 7/16/11	3		(10.00	)		(1,385	)		(3,800	)
MARKET VECTOR GOLD MINER CALL OPTION, $60 EXP 6/18/11	3		(30.00	)		(7,753	)		(12,300	)
MARKET VECTOR GOLD MINER CALL OPTION, $62 EXP 5/21/11	3		(30.00	)		(3,494	)		(5,580	)
MARKET VECTOR GOLD MINER CALL OPTION, $62 EXP 6/18/11	3		(20.00	)		(3,509	)		(5,860	)
NATIONAL GRID PLC CALL OPTION, $50 EXP 6/18/11	3		(25.00	)		(1,211	)		(4,000	)
NORFOLK SOUTHERN CALL OPTION, $70 EXP 6/18/11	3		(20.00	)		(2,869	)		(9,740	)
NYSE EURONEXT CALL OPTION, $40 EXP 9/17/11	3		(25.00	)		(3,461	)		(4,500	)
ORACLE CORP CALL OPTION, $35 EXP 9/17/11	3		(20.00	)		(2,209	)		(5,220	)
PANERA BREAD CALL OPTION, $135 EXP 8/20/11	3		(10.00	)		(4,614	)		(2,700	)
SCHNITZER STEEL CALL OPTION, $75 EXP 8/20/11	3		(20.00	)		(5,239	)		(1,200	)
SIEMENS AG ADR CALL OPTION, $150 EXP 10/22/11	3		(15.00	)		(7,397	)		(12,900	)
STERICYCLE INC CALL OPTION, $95 EXP 8/20/11	3		(5.00	)		(1,210	)		(1,700	)
TELECOM ARGENTINA CALL OPTION, $30 EXP 7/16/11	3		(30.00	)		(2,504	)		(600	)
TEVA PHARMACEUTICAL CALL OPTION, $57.50 EXP 9/17/11	3		(20.00	)		(1,769	)		(600	)
TRANSOCEAN CALL OPTION, $80 EXP 5/21/11	3		(30.00	)		(6,314	)		(1,170	)
VARIAN MEDICAL SYS CALL OPTION, $75 EXP 8/20/11	3		(30.00	)		(4,304	)		(3,600	)
VISTEON CORP CALL OPTION $80 EXP 9/17/11	3		(30.00	)		(11,313	)		(1,650	)
WESTERN DIGITAL CALL OPTION, $42 EXP 7/16/11	3		(20.00	)		(3,327	)		(2,700	)
TOTAL CALL OPTIONS - LIABILITIES						(176,690	)		(221,935	)		-0.19	%

BMC FUND, INC.

SCHEDULE OF OPEN WRITTEN OPTION CONTRACTS (Unaudited)

April 30, 2011

										Percent
		Contracts						Market		of Net
Company Name		Held			Cost			Value		Assets

OPTIONS:
PUT OPTIONS:
AMAZON COM INC PUT OPTION, $140 EXP 10/22/11	3	(20.00	)		(14,269.00	)		(4,080.00	)
AMAZON PUT OPTION, $145 EXP 10/22/11	3	(20.00	)		(21,779.00	)		(5,380.00	)
AMTECH SYSTEMS INC PUT OPTION, $17.50 EXP 11/19/11	3	(50.00	)		(7,673.00	)		(7,500.00	)
AMTECH SYSTEMS INC PUT OPTION, $20 EXP 8/20/11	3	(10.00	)		(1,584.00	)		(1,500.00	)
APPLE COMPUTER PUT OPTION, $290 EXP 10/22/11	3	(15.00	)		(26,901.00	)		(10,950.00	)
APPLE COMPUTER PUT OPTION, $310 EXP 10/22/11	3	(5.00	)		(9,435.00	)		(5,800.00	)
APPLE COMPUTER PUT OPTION, $325 EXP 10/22/11	3	(10.00	)		(23,984.00	)		(15,700.00	)
BANCO BRADESCO PUT OPTION, $17.92 EXP 6/18/11	3	(100.00	)		(9,095.00	)		(1,800.00	)
BEST BUY INC PUT OPTION, $25 EXP 1/21/12	3	(125.00	)		(15,432.00	)		(14,375.00	)
BEST BUY PUT OPTION, $30 EXP 6/18/11	3	(125.00	)		(16,432.00	)		(10,875.00	)
BUNGE LTD PUT OPTION, $60 EXP 7/16/11	3	(20.00	)		(5,069.00	)		(600.00	)
CAMECO CORP PUT OPTION, $28 EXP 9/17/11	3	(30.00	)		(6,404.00	)		(5,700.00	)
CISCO SYSTEMS PUT OPTION, $17 EXP 10/22/11	3	(250.00	)		(20,113.00	)		(27,000.00	)
CIT GROUP INC PUT OPTION, $40 EXP 7/16/11	3	(100.00	)		(21,745.00	)		(9,000.00	)
COMPANHIA DE BEBIDAS PUT OPTION, $25 EXP 7/16/11	3	(400.00	)		(43,381.00	)		(2,000.00	)
CORNING INC PUT OPTION, $20 EXP 8/20/11	3	(75.00	)		(6,509.00	)		(6,675.00	)
CVS CAREMARK PUT OPTION, $30 EXP 8/20/11	3	(100.00	)		(13,345.00	)		(3,200.00	)
DELL COMPUTER PUT OPTION, $12 EXP 8/20/11	3	(50.00	)		(2,923.00	)		(650.00	)
EBAY PUT OPTION, $25 EXP 7/16/11	3	(250.00	)		(34,008.00	)		(3,250.00	)
ENSCO PUT OPTION, $47 EXP 6/18/11	3	(20.00	)		(5,269.00	)		(340.00	)
FAMILY DOLLAR STORES PUT OPTION, $40 EXP 1/21/12	3	(50.00	)		(15,422.00	)		(750.00	)
FIRST SOLAR PUT OPTION, $125 EXP 9/17/11	3	(10.00	)		(8,284.00	)		(8,200.00	)
FIRST SOLAR PUT OPTION, $130 EXP 6/18/11	3	(10.00	)		(7,384.00	)		(5,000.00	)
GARMIN LTD PUT OPTION, $25 EXP 7/16/11	3	(100.00	)		(9,957.00	)		(1,100.00	)
GT SOLAR INTL PUT OPTION, $10 EXP 9/17/11	3	(50.00	)		(6,298.00	)		(5,000.00	)
ISHARES JAPAN INDEX PUT OPTION, $8 EXP 1/21/12	3	(500.00	)		(21,242.00	)		(7,500.00	)
ISHARES JAPAN INDEX PUT OPTION, $9 EXP 9/17/11	3	(500.00	)		(31,217.00	)		(7,500.00	)
JOY GLOBAL PUT OPTION, $80 EXP 7/16/11	3	(30.00	)		(13,903.00	)		(2,340.00	)
MILLICOM INTL PUT OPTION, $80 EXP 7/16/11	3	(30.00	)		(10,133.00	)		(600.00	)
NAVIOS MARITIME PUT OPTION, $5 EXP 6/18/11	3	(500.00	)		(24,227.00	)		(7,500.00	)
NAVIOS MARITIME PUT OPTION, $5 EXP 9/17/11	3	(500.00	)		(32,332.00	)		(22,500.00	)
NETEASE COM PUT OPTION, $40 EXP 9/17/11	3	(15.00	)		(3,755.00	)		(2,250.00	)
SIEMENS PUT OPTION, $100 EXP 7/16/11	3	(25.00	)		(12,711.00	)		(500.00	)
VALE S A PUT OPTION, $31 EXP 9/17/11	3	(30.00	)		(5,204.00	)		(4,230.00	)
VISTEON CORP PUT OPTION, $60 EXP 9/17/11	3	(50.00	)		(12,673.00	)		(8,750.00	)
VISTEON CORP PUT OPTION, $65 EXP 9/17/11	3	(50.00	)		(22,422.00	)		(16,500.00	)
WALTER ENERGY PUT OPTION, $90 EXP 9/17/11	3	(20.00	)		(11,769.00	)		(3,060.00	)
WENDY'S/ARBY'S PUT OPTION, $4 EXP 8/20/11	3	(500.00	)		(14,227.00	)		(2,500.00	)
TOTAL PUT OPTIONS - LIABILITIES					(568,510	)		(242,155	)	-0.21	%

TOTAL CALL AND PUT OPTIONS - LIABILITIES				$	(745,200	)	$	(464,090	)	-0.40	%

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.

/s/ Boyd C. Wilson, Jr.

Boyd C. Wilson, Jr.

Vice President and

Chief Financial Officer

Date: June 14, 2011

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.

/s/ Paul H. Broyhill

Paul H. Broyhill

Chairman and Chief Executive Officer

Date: June 14, 2011

/s/ Boyd C. Wilson, Jr.

Boyd C. Wilson, Jr.

Vice President and

Chief Financial Officer

Date: June 14, 2011

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