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, 2016
Date of reporting period: April 30, 2016
Item 1. Report to Stockholders.
BMC FUND, INC.
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
(UNAUDITED)
Six Months Ended April 30, 2016
BMC FUND, INC.
TABLE OF CONTENTS
BMC FUND, INC.
LETTER TO SHAREHOLDERS
Six Months Ended April 30, 2016 (Unaudited)
TO OUR SHAREHOLDERS:
We are happy to present to you our semi-annual report (unaudited) for the six months ended April 30, 2016, which we believe contains complete and pertinent financial information.
BMC Fund, Inc. (the “Company”) became a Regulated Investment Company (“RIC”) on April 1, 1981. During the six months ended April 30, 2016, the Company paid the following dividends per share:
| December 10, 2015 to shareholders of record November 25, 2015 | | $ | .25 | |
| March 10, 2016 to shareholders of record February 25, 2016 | | | .25 | |
| | | | | |
| Total | | $ | .50 | |
The attached Schedule of Investments is a listing of the entire Company’s diversified securities at April 30, 2016, with a total market value of $99,985,277.
M. Hunt Broyhill
Chairman and President
BMC FUND, INC.
GRAPHIC PRESENTATION OF PORTFOLIO HOLDINGS AND
SECTOR DIVERSIFICATION
Six Months Ended April 30, 2016 (Unaudited)
| BMC FUND, INC. |
| STATEMENT OF ASSETS AND LIABILITIES (Unaudited) |
| April 30, 2016 |
| ASSETS AT MARKET VALUE: | | | | |
| Investment securities (cost - $98,255,918) | | $ | 99,985,277 | |
| Cash and short-term investments | | | 3,046,938 | |
| Receivables, accrued interest and dividends | | | 114,547 | |
| Other assets | | | 44,801 | |
| | | | | |
| Total assets | | | 103,191,563 | |
| | | | | |
| LIABILITIES: | | | | |
| Call and put options written, at fair value (premiums received $323,289) | | | 261,841 | |
| Accounts payable and accrued expenses | | | 12,695 | |
| Payable to broker | | | 319,500 | |
| Payable to custodian | | | 2,900 | |
| Accounts payable to affiliates | | | 77,004 | |
| | | | | |
| Total liabilities | | | 673,940 | |
| | | | | |
| NET ASSETS AT APRIL 30, 2016 - EQUIVALENT TO $20.78 PER SHARE ON 4,933,281 SHARES OF COMMON STOCK OUTSTANDING | | $ | 102,517,623 | |
| | | | | |
| 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 | | | 70,716,690 | |
| Undistributed net investment income | | | 149,007 | |
| Undistributed nontaxable gain | | | 5,194,714 | |
| Unrealized appreciation of investments | | | 1,790,807 | |
| | | | | |
| NET ASSETS APPLICABLE TO COMMON STOCK OUTSTANDING | | $ | 102,517,623 | |
See accompanying notes to financial statements.
| BMC FUND, INC. |
| STATEMENT OF OPERATIONS (Unaudited) |
| Six Months Ended April 30, 2016 |
| INVESTMENT INCOME: | | | | |
| Income: | | | | |
| Interest - fixed income | | $ | 38,366 | |
| Dividend income (net of $3,523 foreign tax) | | | 1,251,185 | |
| | | | | |
| Total income | | | 1,289,551 | |
| | | | | |
| Expenses: | | | | |
| Legal and professional fees | | | 49,623 | |
| Directors' fees (Note 8) | | | 34,500 | |
| Investment expense | | | 22,739 | |
| Salaries and related expenses | | | 355,942 | |
| Property and liability insurance | | | 27,088 | |
| Depreciation expense | | | 1,935 | |
| Rent | | | 14,730 | |
| Office expense and supplies | | | 31,772 | |
| Dues and subscriptions | | | 23,358 | |
| Travel and entertainment | | | 15,143 | |
| | | | | |
| Total expenses | | | 576,830 | |
| | | | | |
| Investment income, net | | | 712,721 | |
| | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | |
| Realized losses from investments sold and foreign currency transactions | | | (1,191,615 | ) |
| Realized gain from expiration or closing of options contracts written | | | 36,212 | |
| Change in unrealized appreciation of investments for the period | | | 743,372 | |
| | | | | |
| Net loss on investments | | | (412,031 | ) |
| | | | | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 300,690 | |
See accompanying notes to financial statements.
| BMC FUND, INC. |
| STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) |
| Six Months Ended April 30, 2016 and 2015 |
| | | 2016 | | | 2015 | |
| | | | | | | | | |
| INCREASE IN NET ASSETS FROM OPERATIONS: | | | | | | | | |
| Net investment income | | $ | 712,721 | | | $ | 1,139,856 | |
| Realized gains (losses) from investment securities sold and foreign currency transactions | | | (1,155,403 | ) | | | 1,707,806 | |
| Change in unrealized appreciation of investments for the year | | | 743,372 | | | | (1,174,931 | ) |
| | | | | | | | | |
| Net increase in net assets resulting from operations | | | 300,690 | | | | 1,672,731 | |
| | | | | | | | | |
| Distributions to shareholders from: | | | | | | | | |
| Net realized gain on investment securities and foreign currency transactions | | | - | | | | (870,308 | ) |
| Net investment income | | | (797,388 | ) | | | (1,694,998 | ) |
| Retained earnings prior to becoming an investment company | | | (1,669,252 | ) | | | - | |
| | | | | | | | | |
| TOTAL INCREASE (DECREASE) IN NET ASSETS | | | (2,165,950 | ) | | | (892,575 | ) |
| | | | | | | | | |
| NET ASSETS AT BEGINNING OF PERIOD | | | 104,683,573 | | | | 111,568,068 | |
| | | | | | | | | |
| NET ASSETS AT END OF PERIOD (Including undistributed net investment income: | | | | | | | | |
| (2016 - $149,007, 2015 - $549,909) | | $ | 102,517,623 | | | $ | 110,675,493 | |
See accompanying notes to financial statements.
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
BMC Fund, Inc. (the “Company”) is a closed-end, diversified investment company registered under the Investment Company Act of 1940, as amended. Prior to becoming a regulated investment company on April 1, 1981, BMC Fund, Inc. operated as a regular corporation. The following is a summary of significant accounting policies followed by the Company in the preparation of its financial statements.
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
A. Investment Valuations – The investment securities are stated at fair value as determined by closing prices on national securities exchanges. Investment securities include corporate bonds, mutual funds, and common and preferred stocks.
The investments in limited partnerships, other investments and venture capital are stated at estimated fair value as determined by the management of these investments and are approved by the Company’s Valuation Committee after giving consideration to historical and projected financial results, economic conditions, financial condition of investee and other factors and events subject to change, and ratified by the Company’s Board of Directors. Because of the inherent uncertainty of those valuations, the estimated values may differ significantly from the values that would have been used had a ready market value for the investments existed, and these differences could be material.
B. Basis of Presentation - The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification. The Company evaluates subsequent events through the date of filing with the Securities and Exchange Commission (“SEC”).
C. Investment Transactions – Investment transactions are accounted for on the date the order to buy or sell is executed. Realized gains and losses on investments are determined on the basis of specific identification of issues sold or matured. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums on securities purchased are amortized over the lives of the respective securities. Realized gains and losses on foreign currency transactions are included with realized gains and losses on investments.
For the six months ended April 30, 2016, the Company purchased and sold securities in the amount of $4,283,204 and $11,542,293 (excluding short-term investments and options), respectively.
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
D. Option Writing – When the Company writes an option, an amount equal to the premium received by the Company is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Company on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Company has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Company. The Company as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.
E. Income Taxes – No federal tax provision is required as it is the Company’s policy to comply with the provisions of Subchapter M of the Internal Revenue Code of 1954, as amended, including the distribution to its shareholders of substantially all of its income and any capital gains not offset by capital losses. Also, no state income tax provision has been provided because the states in which the Company has income recognize the tax exempt status of a regulated investment company.
The Company did not have an accrual for uncertain tax positions as deductions taken and benefits accrued are based on widely understood administrative practices and procedures, and are based on clear and unambiguous tax law. Tax returns for all years 2011 and thereafter are subject to possible future examinations by tax authorities.
F. Dividend Policy – It is the Company’s policy to pay dividends during the year in sufficient amounts to meet the requirements to maintain its status as a regulated investment company.
G. Cash and Short-Term Investments – For purposes of financial reporting, the Company considers all investments at financial institutions with original maturities of three months or less to be equivalent to cash. Short-term money market investments managed by third party investors are included in investment securities.
H. Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
I. Fair Value Measurements – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date.
In determining fair value, the Company uses various valuation techniques. A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available. Valuation techniques that are consistent with the market or income approach are used to measure fair value. The fair value hierarchy is categorized into three levels based on the inputs as follows:
Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 - Valuations based on inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly.
Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
Fair value is a market-based measure, based on assumptions of prices and inputs considered from the perspective of a market participant that are current as of the measurement date, rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date.
The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for investments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
J. Investments in Limited Partnerships - Investments in limited partnerships are valued, as a practical expedient, utilizing the net asset valuations provided by the underlying limited partnerships when the net asset valuations of the investments are calculated (or adjusted by the Company if necessary) in a manner consistent with GAAP for investment companies. The Company applies the practical expedient to its investments in limited partnerships on an investment-by-investment basis, and consistently with the Company's entire position in a particular investment, unless it is probable that the Company will sell a portion of an investment at an amount different from the net asset valuation.
Investments in limited partnerships are included in Level 3 of the fair value hierarchy. In determining the level, the Company considers the length of time until the investment is redeemable, including notice and lock-up periods or any other restriction on the disposition of the investment. The Company also considers the nature of the portfolios of the underlying limited partnership and their ability to liquidate their underlying investments. If the Company does not know when it will have the ability to redeem the investment or it does not have the ability to redeem its investment in the near term, the investment is included in Level 3 of the fair value hierarchy. In addition, investments which are not valued using the practical expedient are included in Level 3 in the fair value hierarchy.
K. Fair Value-Valuation Processes - The Company establishes valuation processes and procedures to ensure that the valuation techniques are fair, consistent, and verifiable. The Company has designated a valuation subcommittee, that is comprised of senior management employees of the Company, that meets on a quarterly basis, or more frequently as needed, to approve the valuations of the Fund's investments. The valuation subcommittee establishes valuations which are then provided to the Company’s valuation committee, which is comprised of disinterested directors, who review and recommend the valuations to the Company’s Board of Directors to ratify. The Company’s valuations committee is responsible for developing the Company’s written valuation processes and procedures, conducting periodic reviews of the valuation policies, and evaluating the overall fairness and consistent application of the valuation processes.
The valuations of investments in limited partnerships are supported by information received from the limited partnerships, such as monthly net asset values, investor reports, and audited financial statements, when available. If it is probable that the Company will sell an investment at an amount different from the net asset valuation or in other situations where the practical expedient is not available, or when the Company believes alternative valuation techniques are more appropriate, the valuation committee may consider other factors, including subscription and redemption rights, expected discounted cash flows, transactions in the secondary market, bids received from potential buyers, and overall market conditions in its determination of fair value.
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Company's Level 3 investments have been valued using the unadjusted net asset value of investments in limited partnerships. As a result, there were no unobservable inputs that have been internally developed by the Company in determining the fair values of its investments as of April 30, 2016.
The following is a summary of the inputs used to value the Company’s investments as of April 30, 2016.
| 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 | | $ | 9,578,775 | | | $ | - | | | $ | - | | | $ | 9,578,775 | |
| Mutual Funds | | | | | | | | | | | | | | | | |
| Bond Mutual Funds | | | 8,757,765 | | | | - | | | | - | | | | 8,757,765 | |
| Stock Mutual Funds | | | 8,243,122 | | | | - | | | | - | | | | 8,243,122 | |
| Other Investments | | | | | | | | | | | | | | | | |
| Limited Partnerships | | | - | | | | - | | | | 22,800,606 | | | | 22,800,606 | |
| Common Stocks | | | | | | | | | | | | | | | | |
| Common Stocks – Publicly Traded including Call and Put Options | | | 30,143,680 | | | | - | | | | - | | | | 30,143,680 | |
| Call Options | | | (152,215 | ) | | | | | | | | | | | (152,215 | ) |
| Put Options | | | (109,626 | ) | | | - | | | | - | | | | (109,626 | ) |
| Preferred Stocks | | | 818,250 | | | | - | | | | - | | | | 818,250 | |
| Cash and Cash Equivalents | | | 19,643,079 | | | | - | | | | - | | | | 19,643,079 | |
| Total Investments | | $ | 76,922,830 | | | $ | - | | | $ | 22,800,606 | | | $ | 99,723,436 | |
The table below presents a reconciliation for the six months ended April 30, 2016, for all Level 3 assets that are measured at fair value on a recurring basis.
| | | Balance | | | Accrued | | | Unrealized | | | Realized | | | | | | | | | | | | Net Transfers | | | Balance | |
| | | as of | | | Discounts/ | | | Gains & | | | Gains & | | | Net | | | Return of | | | Net | | | in (out of) | | | as of | |
| Level 3 Assets | | 10/31/2015 | | | Premiums | | | Losses | | | Losses | | | Purchases | | | Capital | | | Sales | | | Level 3 | | | 4/30/2016 | |
| Other Investments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Limited Partnerships | | $ | 22,620,053 | | | $ | - | | | $ | 259,627 | | | $ | 95,151 | | | $ | 546,578 | | | $ | (499,790 | ) | | $ | (221,013 | ) | | $ | - | | | $ | 22,800,606 | |
| Total Investments | | $ | 22,620,053 | | | $ | - | | | $ | 259,627 | | | $ | 95,151 | | | $ | 546,578 | | | $ | (499,790 | ) | | $ | (221,013 | ) | | $ | - | | | $ | 22,800,606 | |
Realized gains and losses are included in the realized gain from investments sold on the Statement of Operations. Unrealized gains and losses are included in the change in unrealized appreciation of investments on the Statement of Operations.
| | L. Investments in Limited Partnerships - As of April 30, 2016, the Company was invested in limited partnerships. Each of these investments has certain restrictions with respect to rights of withdrawal by the Company as specified in the respective agreements. Generally, the Company is required to provide notice of its intent to withdraw after the investment has been maintained for a certain period of time. The management agreements of the limited partnerships provide for compensation to the managers in the form of fees ranging from 0.5% to 2% annually of net assets and performance incentive allowances or fees ranging from 10% to 20% of net profits earned. |
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
The following table summarizes the Company's investments in other limited partnerships as of April 30, 2016. The Company's investments in limited partnerships have certain redemption and liquidity restrictions which are described in the below table.
| Investment | | Redemptions Notice Period | | Redemptions Permitted | | Liquidity Restrictions |
| Limited Partnerships | | | | | | |
| 400 Capital Credit Opportunities Fund LP | | 60 days | | Quarterly | | See below (1) |
| Elliott Associates, LP | | 60 days | | Jan. 1 or July 1 | | See below (2) (3) |
| Graham Growth Partners, LP | | 30 days | | Quarterly | | None |
| Greenlight Masters Qualified, LP | | 105 days | | December 31 | | See below (4) |
| Infinity Premier Fund, LP | | 95 days | | Quarterly | | See below (5) (6) |
| Litespeed Partners, LP | | 45 days | | Quarterly | | See below (6) |
| Morrocroft Special Opportunity Fund II, LP | | 90 days | | Quarterly | | See below (4) (7) |
| Oaktree Enhanced Income Fund II, LP | | N/A | | N/A | | See below (8) |
| Passport Long Short Fund, LP | | 15 days | | Monthly | | See below (9) |
| Privet Fund LP | | 90 days | | Quarterly | | See below (10) |
| Serengeti Multi-Series, LP | | 87 days | | Quarterly | | See below (11) |
| Stark Investments LP | | N/A | | N/A | | See below (12) |
| Stark Structured Finance Onshore LP | | N/A | | N/A | | See below (12) |
| Terra Argentine Fund, LP | | N/A | | N/A | | See below (13) |
| Virgo Societas Partnership III (Onshore), LP | | N/A | | N/A | | See below (14) |
Walnut Investment Partners, LP
Worldwide Opportunity Fund (Cayman), Ltd. | | N/A
30 days | | N/A
June 30 or Dec. 31 | | See below (15)
See below (16) |
(1) Withdrawal proceeds are available as follows: 25% at withdrawal date; 33 1/3% of the remaining account three months after withdrawal date; 50% of the remaining amount six months after withdrawal date, and the remaining balance nine months after withdrawal date.
(2) There is a gate provision if requests for redemptions would cause a decline in aggregate net asset value of 20%. In addition to the 20% withdrawal limitation, a partner may not withdraw more than 25% of the capital in its Class B capital account on any withdrawal date.
(3) There is a capital surcharge of 1 3/4% for a partial or full withdrawal which may be waived in whole or in part.
(4) There is a gate provision regarding requests for redemptions, subject to various unspecified terms.
(5) Withdrawals of capital contributed less than 12 months preceding the withdrawal date will be subject to a reduction equal to 3% of the requested withdrawal amount.
(6) There is a gate provision if aggregate requested withdrawal amounts exceed 25% of the aggregate partner capital of the partnership, each limited partner who has submitted a timely request will receive a pro rata portion of the requested withdrawal, and any balance will be considered a timely withdrawal request with respect to the next withdrawal date.
(7) Minimum withdrawal is $100,000, and subsequent withdrawals may only be made in increments of $100,000. Withdrawal maximum limits: up to 1/5 of investment on initial withdrawal date, up to 1/4 of the remainder as of any subsequent withdrawal date, up to 1/3 of the remainder as of any subsequent withdrawal date, up to 1/2 of the remainder as of any subsequent withdrawal date, and up to the remainder as of any subsequent withdrawal date.
(8) Redemptions are not permitted.
(9) There is a gate provision if aggregate requested withdrawal amounts exceed 65% of the net asset value. Withdrawals to investors subject to this provision may be reduced pro rata based on their respective withdrawal requests. Any unpaid withdrawal amounts will be automatically submitted for the next withdrawal date.
(10) Redemptions from portions of capital balance attributable to special investments are permitted only in the general partner’s discretion.
(11) There is a three-year lock-up period for the contribution to the underlying fund which expires May 31, 2016.
(12) In liquidation.
(13) No voluntary withdrawals are permitted prior to the Effective Transition Date, which is not earlier than July 1, 2015.
(14) Redemptions are not permitted. Unless the general partner elects an earlier date, the partnership expires April 17, 2019, which is the seventy-two month anniversary date of the initial closing of April 17, 2013, subject to a discretionary extension by the general partner of up to two consecutive additional one-year periods.
(15) Walnut is in receivership.
(16) Partial redemption may not reduce capital account below the lesser of $100,000 or 1% of the capital accounts of all investors.
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
| 2. | SIGNIFICANT ACCOUNTING POLICIES (Continued) |
The Company is subject to credit risk to the extent that the investment managers of the underlying limited partnerships are unable to fulfill their obligations according to their organizational documents. The Company, through its investments in limited partnerships, is subject to risk inherent when investing in securities and private investments. In connection with its investments, the Company is subject to the market and credit risk of those investments held or sold short by the limited partnerships. Due to the nature of the Company's investments, the above described risks are limited to the Fund's investment balances and unfunded commitments to limited partnerships.
| 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, 2016, were as follows:
| Gross appreciation (excess of value over tax cost) | | $ | 9,951,999 | |
| Gross depreciation (excess of tax cost over value) | | | (8,222,640 | ) |
| Net unrealized appreciation | | $ | 1,729,359 | |
| Cost of investments for income tax purposes | | $ | 98,255,918 | |
As of April 30, 2016, portfolio securities valued at $2,779,793 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, 2016 were as follows:
| | | Number of Contracts | | | Premiums Received | |
| Options outstanding at October 31, 2015 | | | 635 | | | $ | 156,772 | |
| Options written | | | 1,612 | | | | 388,958 | |
| Options terminated in closing purchase transactions | | | (460 | ) | | | (87,919 | ) |
| Options expired | | | (380 | ) | | | (113,493 | ) |
| Options exercised | | | (140 | ) | | | (21,029 | ) |
| Options outstanding at April 30, 2016 | | | 1,267 | | | $ | 323,289 | |
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
As of April 30, 2016, cash in the amount of $90,683 was pledged as collateral for put options sold by the Company.
| 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 year 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, 2015, a distribution of $0.25 per share was paid to shareholders of record on November 25, 2015.
On March 10, 2016, a distribution of $0.25 per share was paid to shareholders of record on February 25, 2016.
The tax character of distributions paid during 2016 was as follows:
| | | 2016 | |
| Distributions paid from: | | | | |
| Ordinary income | | $ | 304,995 | |
| Long-term capital gains | | | 861,730 | |
| Retained earnings prior to becoming an investment company | | | 1,299,915 | |
| | | $ | 2,466,640 | |
On April 22, 2010, (renewed April 21, 2013), 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 paid a commitment fee of 35 basis points on any unused balance. The line of credit expired on April 21, 2016.
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
| 8. | 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 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.
The Company leases office space from Broyhill Investments, Inc., which is controlled by M. Hunt Broyhill, an officer of BMC Fund, Inc. The expense associated with this related party lease for the six months ended April 30, 2016 amounted to $14,730. 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, 2016 was $77,004.
Selected securities at the end of the year have significant investment impairment issues. These selected securities have an aggregate cost basis of $4,270,008 and have been assigned no value at April 30, 2016.
| 11. | SUPPLEMENTAL INFORMATION |
M. Hunt Broyhill, Chairman and President, and Christopher R. Pavese, CFA, Vice President and Chief Investment Officer, are primarily responsible for the day-to-day management of the Company’s portfolio. Mr. Hunt Broyhill has had such responsibility since 2001. He 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.
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Six Months Ended April 30, 2016 (Unaudited)
| 12. | SUPPLEMENTAL PROXY INFORMATION AND 2016 ANNUAL MEETING OF SHAREHOLDERS |
The Annual Meeting of Shareholders of BMC Fund, Inc. was held on February 26, 2016 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 |
| | | |
| Kevin P. Boudreau | 1 year | 2017 |
| James T. Broyhill | 1 year | 2017 |
| M. Hunt Broyhill | 1 year | 2017 |
| Margaret M. “Peg” Broyhill | 1 year | 2017 |
| Paul H. Broyhill | 1 year | 2017 |
| W. Charles Campbell | 1 year | 2017 |
| R. Donald Farmer | 1 year | 2017 |
| Robert G. Fox, Jr. | 1 year | 2017 |
| Jan E. Gordon | 1 year | 2017 |
| Brent B. Kincaid | 1 year | 2017 |
| Mark E. Roberts | 1 year | 2017 |
| Allene B. Stevens | 1 year | 2017 |
2. To vote upon such other business as may come before the meeting.
BMC FUND, INC.
DIRECTORS AND OFFICERS
Six Months Ended April 30, 2016 (Unaudited)
The directors of the Fund were elected for a one-year term at the 2016 annual meeting of shareholders of the Fund.
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 During at Least the Past 5 Years |
| | | | | | | | | |
James T. Broyhill (89)
1930 Virginia Road
Winston-Salem, NC 27104 | | Director
Vice Chairman | | Since 1976
Since 2005
| | Retired; Director of Shepherd Street Equity Fund (1998-2008); Vice President of Old Clemmons School Properties, Inc. (2006-present); President of Old Clemmons School Properties, Inc. (1998-2006); 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 (52) 1870 9th Street Court, NW Hickory, NC 28601 | | Director
Chairman
President
Vice President | | Since 2008
Since 2014
Since 2007
2001-2007
| | Chairman of the Fund since February 2014; President of the Fund since February 2007; former Vice President of the Fund (2001-2007); Chief Executive of 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); 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) | | Capitala Finance Corp. (Feb. 2013-present) |
BMC FUND, INC.
DIRECTORS AND OFFICERS
Six Months Ended April 30, 2016 (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 During at Least the Past 5 Years |
| | | | | | | | | |
Paul H. Broyhill (92)
135 Claron Place, SE
Lenoir, NC 28645 | | Director
Chairman Emeritus
Chief Executive Officer
Chairman | | Since 1976
Since 2014
2001-2014
1976-2014
| | Director and Chairman Emeritus; former Chairman (1976-2014) and Chief Executive Officer of the Fund (2001-2014); 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 |
| | | | | | | | | |
W. Charles Campbell (49)
2320 Sharon Road
Charlotte, NC 28207
| | Director | | Since 2011 | | President and Chief Executive Officer of Flagship Capital Partners, LLC, a private investment real estate firm (2005-present); Co-manager of Brackett Flagship Properties, LLC, a commercial real estate firm (2010-present)
| | None
|
| | | | | | | | | |
Jan E. Gordon (64)
3075 Rolling Woods Drive
Palm Harbor, FL 34683
Allene B. Stevens (94)
153 Hillhaven Place SE
Lenoir, NC 28645 | | Director
Director | | Since 2001
Since 1983
| | Retired; former election assistant, Pinellas County, FL Supervisor of Elections (1992-2005)
Private Investor | | None
None
|
BMC FUND, INC.
DIRECTORS AND OFFICERS
Six Months Ended April 30, 2016 (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 During at Least the Past 5 Years |
| | | | | | | | | |
Kevin P. Boudreau (52)
117 Shannon Court
Rocky Mount, NC 27804
| | Director | | Since 2011 | | Vice President of Tax and Risk Management, Boddie-Noell Enterprises, Inc., a diversified company with interests in restaurant and land-development projects (2005-present)
| | None
|
| | | | | | | | | |
Margaret M. “Peg” Broyhill (73)
1995 Cedar Rock Estates
Lenoir, NC 28645 | | Director | | Since Feb. 2015 | | Resident Branch Manager (Lenoir, NC office) (1993-present) and Senior Vice President of Wells Fargo Advisors (1995-present)
| | None |
| | | | | | | | | |
R. Donald Farmer (68)
375 River Haven Drive
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. (66)
330 Lams Way
Vilas, NC 28692 | | 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 (84)
2703 Lakeview Drive
Lenoir, NC 28645 | | Director | | Since 2005 | | Retired since 1998; former President and CEO of Broyhill Furniture Industries, Inc.
| | None
|
| | | | | | | | | |
Mark E. Roberts (53)
269 River Ridge Drive
Wallace, NC 28466 | | Director | | Since 2014 | | Chief Investment Officer of Biltmore Family Offices, LLC (May 2013-present); Chief Investment Officer of Ironsides Asset Advisors, LLC, a registered investment advisory firm (2009-present); former Director of Global Equities and Hedges Strategies, State of North Carolina Retirement System (2003-2009)
| | None
|
BMC FUND, INC.
DIRECTORS AND OFFICERS
Six Months Ended April 30, 2016 (Unaudited)
| Other Executive Officers |
Name, Address and Age | | Positions
Held with Fund | | Length of Time Served | | Principal Occupation During Past 5 Years | | Directorships Held
by Officer During at Least the Past 5 Years |
| | | | | | | | | |
Boyd C. Wilson, Jr. (63)
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)
| | CommunityOne Bancorp (2011-present); Bank of Granite Corp. (1996-2013) |
| | | | | | | | | |
Christopher R. Pavese (39)
166 Pleasant Point Drive
Hickory, NC 28601 | | Vice President
Chief Investment Officer | | Since 2014
Since 2011 | | Vice President (since February 2014) and Chief Investment Officer of the Fund since March 2011; Portfolio Manager of the Fund (2005-2011); Chief Investment Officer of Broyhill Asset Management, LLC (2008-present); Chief Investment Officer of Broyhill Affinity Fund, LLC (2008-2012)
| | None |
| | | | | | | | | |
Carol Frye (58)
1009 Frosty Lane, NE
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.
ADDITIONAL INFORMATION
Six Months Ended April 30, 2016 (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 end April 30, 2016 (unaudited), Years Ended October 31, 2015, 2014, 2013, 2012, 2011, 2010, 2009, 2008, 2007 and 2006 |
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, 2016 (unaudited) and the years ended October 31, 2015, 2014, 2013, 2012, 2011, 2010, 2009, 2008, 2007and 2006. 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | April 30, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PER SHARE OPERATING | | 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PERFORMANCE | | (Unaudited) | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | 21.22 | | | $ | 22.62 | | | $ | 22.57 | | | $ | 22.58 | | | $ | 22.11 | | | $ | 22.41 | | | $ | 21.20 | | | $ | 20.79 | | | $ | 36.28 | | | $ | 33.55 | | | $ | 32.84 | |
| Net investment income | | | 0.14 | | | | 0.35 | | | | 0.42 | | | | 0.46 | | | | 0.35 | | | | 0.49 | | | | 0.46 | | | | 0.48 | | | | 0.73 | | | | 0.78 | | | | 1.06 | |
| Net gains (losses) on investments | | | (0.08 | ) | | | (0.73 | ) | | | 0.63 | | | | 0.60 | | | | 1.18 | | | | 0.21 | | | | 1.70 | | | | 1.65 | | | | (10.98 | ) | | | 4.25 | | | | 2.43 | |
| Total from investment operations | | | 0.06 | | | | (0.38 | ) | | | 1.05 | | | | 1.06 | | | | 1.53 | | | | 0.70 | | | | 2.16 | | | | 2.13 | | | | (10.25 | ) | | | 5.03 | | | | 3.49 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends from net investment income | | | 0.16 | | | | 0.36 | | | | 0.44 | | | | 0.47 | | | | 0.56 | | | | 0.27 | | | | 0.46 | | | | 0.92 | | | | 1.04 | | | | 2.03 | | | | 2.37 | |
| Distributions from capital gains | | | - | | | | 0.44 | | | | 0.42 | | | | 0.33 | | | | 0.48 | | | | 0.53 | | | | - | | | | - | | | | 1.42 | | | | 0.27 | | | | 0.41 | |
| Distributions from retained earnings | | | 0.34 | | | | 0.22 | | | | 0.14 | | | | 0.27 | | | | 0.02 | | | | 0.20 | | | | 0.49 | | | | 0.80 | | | | - | | | | - | | | | - | |
| P. B. Realty, Inc. Spin-off | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 2.78 | | | | - | | | | - | |
| Total distributions | | | 0.50 | | | | 1.02 | | | | 1.00 | | | | 1.07 | | | | 1.06 | | | | 1.00 | | | | 0.95 | | | | 1.72 | | | | 5.24 | | | | 2.30 | | | | 2.78 | |
| Net asset value, end of period | | $ | 20.78 | | | $ | 21.22 | | | $ | 22.62 | | | $ | 22.57 | | | $ | 22.58 | | | $ | 22.11 | | | $ | 22.41 | | | $ | 21.20 | | | $ | 20.79 | | | $ | 36.28 | | | $ | 33.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Per share market value, end of period1 | | $ | 18.00 | | | $ | 18.00 | | | $ | 18.00 | | | $ | 18.00 | | | $ | 18.00 | | | $ | 18.45 | | | $ | 18.00 | | | $ | 16.75 | | | $ | 26.00 | | | $ | 26.00 | | | $ | 26.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL INVESTMENT RETURN2 | | | 0.34 | % | | | (2.11 | )% | | | 5.83 | % | | | 5.89 | % | | | 8.50 | % | | | 3.79 | % | | | 11.83 | % | | | 12.72 | % | | | (39.42 | )% | | | 19.35 | % | | | 13.40 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| RATIOS/SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (in thousands) | | $ | 102,518 | | | $ | 104,684 | | | $ | 111,568 | | | $ | 111,358 | | | $ | 111,379 | | | $ | 109,069 | | | $ | 110,576 | | | $ | 104,603 | | | $ | 102,574 | | | $ | 178,975 | | | $ | 165,500 | |
| Ratio of expenses to average net assets3 | | | 1.13 | %* | | | 0.98 | % | | | 0.97 | % | | | 0.95 | % | | | 1.01 | % | | | 0.97 | % | | | 1.11 | % | | | 1.18 | % | | | 1.02 | % | | | 0.75 | % | | | 0.73 | % |
| Ratio of net investment income to average net assets3 | | | 1.40 | %* | | | 1.59 | % | | | 1.83 | % | | | 2.04 | % | | | 1.57 | % | | | 2.15 | % | | | 2.11 | % | | | 2.40 | % | | | 2.37 | % | | | 2.26 | % | | | 3.20 | % |
| Portfolio turnover rate | | | 4.36 | % | | | 17.10 | % | | | 22.02 | % | | | 33.12 | % | | | 32.90 | % | | | 60.41 | % | | | 38.08 | % | | | 69.62 | % | | | 67.44 | % | | | 51.23 | % | | | 48.22 | % |
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
BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| April 30, 2016 |
| | | | | Coupon | | | | | | | | | | | | | | | Percent | |
| | | | | Interest | | | Maturity | | | Face | | | | | | Market | | | of Net | |
| Debt Issuer | | | | Rate | | | Date | | | Amount | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | | | | | | | | | |
| FIXED INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| BAXTER INTL INC | | | | | 0.950 | % | | | 6/1/2016 | | | $ | 500,000 | | | $ | 500,028 | | | $ | 500,064 | | | | | |
| AMGEN INC | | | | | 2.300 | % | | | 6/15/2016 | | | | 1,000,000 | | | | 1,001,837 | | | | 1,001,969 | | | | | |
| AMERICAN EXPRESS CR CORP M | | | | | 1.300 | % | | | 7/29/2016 | | | | 625,000 | | | | 625,742 | | | | 625,930 | | | | | |
| COCA COLA CO | | | | | 1.800 | % | | | 9/1/2016 | | | | 1,000,000 | | | | 1,003,673 | | | | 1,004,318 | | | | | |
| 21ST CENTURY FOX AMER INC | | | | | 8.000 | % | | | 10/14/2016 | | | | 402,000 | | | | 414,985 | | | | 414,627 | | | | | |
| TEVA PHARMACEUTICAL FIN CO | | | | | 2.400 | % | | | 11/10/2016 | | | | 1,250,000 | | | | 1,259,019 | | | | 1,259,204 | | | | | |
| CVS HEALTH CORP | | | | | 1.200 | % | | | 12/5/2016 | | | | 1,916,000 | | | | 1,919,896 | | | | 1,920,608 | | | | | |
| TRANSOCEAN INC | | | | | 5.050 | % | | | 12/15/2016 | | | | 250,000 | | | | 250,466 | | | | 251,755 | | | | | |
| COMCAST CORP NEW | | | | | 6.500 | % | | | 1/15/2017 | | | | 450,000 | | | | 467,782 | | | | 467,416 | | | | | |
| BERKSHIRE HATHAWAY INC DEL | | | | | 1.900 | % | | | 1/31/2017 | | | | 503,000 | | | | 507,035 | | | | 507,425 | | | | | |
| GENERAL MILLS INC | | | | | 5.700 | % | | | 2/15/2017 | | | | 500,000 | | | | 517,520 | | | | 518,712 | | | | | |
| MCDONALDS CORP MED TERM NT | | | | | 5.300 | % | | | 3/15/2017 | | | | 1,000,000 | | | | 1,034,526 | | | | 1,037,549 | | | | | |
| AMBEV INTL FIN CO LTD | | | | | 9.500 | % | | | 7/24/2017 | | | | 430,769 | | | | 444,447 | | | | 69,198 | | | | | |
| LEHMAN BROTHERS HLDGS NIKKEI INDEX | | 1,2,3 | | | 0.000 | % | | | 9/29/2008 | | | | 3,000,000 | | | | 1,865,631 | | | | - | | | | | |
| LEHMAN BROTHERS HLDGS EAFE INDEX | | 1,2,3 | | | 0.000 | % | | | 11/15/2008 | | | | 1,000,000 | | | | 615,098 | | | | - | | | | | |
| LEHMAN BROTHERS HLDGS MEDIUM TERM NOTE | | 1,2,3 | | | 0.000 | % | | | 3/15/2011 | | | | 2,500,000 | | | | 1,553,712 | | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL INVESTMENTS IN FIXED INCOME | | | | | | | | | | | | $ | 16,326,769 | | | $ | 13,981,397 | | | $ | 9,578,775 | | | | 9.34 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | | Percent | |
| | | | | | Shares | | | | | | Market | | | of Net | |
| Company Name | | | | | Held | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | | | | |
| MUTUAL FUNDS: | | | | | | | | | | | | | | | | | | | | |
| BOND MUTUAL FUNDS: | | | | | | | | | | | | | | | | | | | | |
| AVENUE INCOME CREDIT STRATEGIES COM | | | | | | | 25,000.00 | | | $ | 427,517 | | | $ | 290,500 | | | | | |
| DOUBLELINE TOTAL RETURN BOND I | | | | | | | 226,010.04 | | | | 2,500,000 | | | | 2,454,469 | | | | | |
| FAIRHOLME FOCUSED INCOME FUND | | | | | | | 68,685.46 | | | | 750,000 | | | | 725,318 | | | | | |
| LOOMIS SAYLES BOND INSTITUTIONAL | | | | | | | 120,930.18 | | | | 1,612,500 | | | | 1,632,557 | | | | | |
| OSTERWEIS STRATEGIC INCOME | | | | | | | 19,861.83 | | | | 230,000 | | | | 214,905 | | | | | |
| PIMCO DYNAMIC CREDIT INCOME FUND | | | | | | | 25,000.00 | | | | 565,060 | | | | 456,750 | | | | | |
| PIMCO DYNAMIC INCOME FUND COM | | | | | | | 25,000.00 | | | | 715,425 | | | | 688,250 | | | | | |
| PIMCO FDS INCOME FUND INSTL | | | | | | | 128,944.70 | | | | 1,500,000 | | | | 1,527,995 | | | | | |
| THIRD AVENUE FOCUSED CREDIT INSTITUTIONAL | | | | | | | 142,568.97 | | | | 1,416,436 | | | | 767,021 | | | | | |
| TOTAL BOND MUTUAL FUNDS | | | | | | | | | | | 9,716,938 | | | | 8,757,765 | | | | 8.54 | % |
| | | | | | | | | | | | | | | | | | | | | |
| STOCK MUTUAL FUNDS: | | | | | | | | | | | | | | | | | | | | |
| INTERNATIONAL EQUITIES | | | | | | | | | | | | | | | | | | | | |
| Asia Ex-Japan Stock | | | | | | | | | | | | | | | | | | | | |
| ISHARES INC MSCI SINGAPORE | | | | | | | 20,000.00 | | | | 255,572 | | | | 217,400 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| TOTAL INTERNATIONAL EQUITIES | | | | | | | | | | | 255,572 | | | | 217,400 | | | | 0.21 | % |
| | | | | | | | | | | | | | | | | | | | | |
| SPECIALTY FUNDS | | | | | | | | | | | | | | | | | | | | |
| Conservative Allocation | | | | | | | | | | | | | | | | | | | | |
| VANGUARD WELLESLEY INCOME INV | | | | | | | 20,045.04 | | | | 422,892 | | | | 511,349 | | | | 0.50 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Financial | | | | | | | | | | | | | | | | | | | | |
| FRANKLIN INCOME FUND ADVIS | | | | | | | 119,047.62 | | | | 250,000 | | | | 255,952 | | | | 0.25 | % |
| | | | | | | | | | | | | | | | | | | | | |
| High Yield Bond | | | | | | | | | | | | | | | | | | | | |
| BLACKROCK FLOATING RATE O COM | | | | | | | 1,500.00 | | | | 19,597 | | | | 19,860 | | | | 0.02 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | | Percent | |
| | | | | | Shares | | | | | | Market | | | of Net | |
| Company Name | | | | | Held | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | | | | |
| Large Cap Blend | | | | | | | | | | | | | | | | | | | | |
| COOK & BYNUM FUND | | | 3 | | | | 33,738.19 | | | | 500,000 | | | | 527,665 | | | | | |
| FEDERATED STRATEGIC VALUE DIVIDEND C | | | | | | | 15,600.62 | | | | 100,000 | | | | 94,228 | | | | | |
| SELECTED AMERICAN SHARES D | | | | | | | 2,059.31 | | | | 100,000 | | | | 75,638 | | | | | |
| T ROWE PRICE PERSONAL STRATEGY GROWTH | | | | | | | 4,370.83 | | | | 90,476 | | | | 122,471 | | | | | |
| YACKTMAN FUND SVC | | | 3 | | | | 24,771.08 | | | | 506,985 | | | | 541,000 | | | | | |
| | | | | | | | | | | | 1,297,461 | | | | 1,361,002 | | | | 1.33 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Long-Short | | | | | | | | | | | | | | | | | | | | |
| GOTHAM ABSOLUTE RETURN INSTITUTIONAL | | | | | | | 18,436.58 | | | | 250,000 | | | | 228,614 | | | | | |
| GOTHAM NEUTRAL INSTITUTIONAL | | | | | | | 22,202.49 | | | | 250,000 | | | | 223,357 | | | | | |
| | | | | | | | | | | | 500,000 | | | | 451,971 | | | | 0.44 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Mid Cap Blend | | | | | | | | | | | | | | | | | | | | |
| PROFESSIONALLY MANAGED AKR | | | 3 | | | | 10,855.41 | | | | 250,000 | | | | 260,530 | | | | 0.25 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Moderate Allocation | | | | | | | | | | | | | | | | | | | | |
| FPA CRESCENT PORTFOLIO | | | | | | | 33,641.26 | | | | 1,025,302 | | | | 1,062,391 | | | | | |
| OAKMARK EQUITY & INCOME I | | | | | | | 8,920.47 | | | | 263,600 | | | | 260,210 | | | | | |
| SEQUOIA FD INC COM | | | | | | | 740.54 | | | | 108,371 | | | | 136,978 | | | | | |
| | | | | | | | | | | | 1,397,273 | | | | 1,459,579 | | | | 1.42 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Precious Metals | | | | | | | | | | | | | | | | | | | | |
| SPDR GOLD SHARES | | | 3 | | | | 10,000.00 | | | | 969,550 | | | | 1,236,500 | | | | | |
| VANECK VECTORS GOLD MINERS | | | | | | | 15,000.00 | | | | 749,269 | | | | 387,450 | | | | | |
| | | | | | | | | | | | 1,718,819 | | | | 1,623,950 | | | | 1.58 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Utilities | | | | | | | | | | | | | | | | | | | | |
| UTILITIES SELECT SECTOR SPDR | | | | | | | 23,000.00 | | | | 734,317 | | | | 1,113,660 | | | | 1.09 | % |
| | | | | | | | | | | | | | | | | | | | | |
| World Allocation | | | | | | | | | | | | | | | | | | | | |
| WELLS FARGO ADVANTAGE ASSET ALLOC ADM | | | | | | | 75,379.17 | | | | 1,010,000 | | | | 967,869 | | | | 0.94 | % |
| | | | | | | | | | | | | | | | | | | | | |
| TOTAL SPECIALTY FUNDS | | | | | | | | | | | 7,600,359 | | | | 8,025,722 | | | | 7.83 | % |
| | | | | | | | | | | | | | | | | | | | | |
| TOTAL STOCK MUTUAL FUNDS | | | | | | | | | | | 7,855,931 | | | | 8,243,122 | | | | 8.04 | % |
| | | | | | | | | | | | | | | | | | | | | |
| TOTAL INVESTMENTS IN MUTUAL FUNDS | | | | | | | | | | $ | 17,572,869 | | | $ | 17,000,887 | | | | 16.58 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | Market | | | Percent of | |
| Company Name | | | | | Cost | | | Value | | | Net Assets | |
| | | | | | | | | | | | | |
| OTHER INVESTMENTS: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| LIMITED PARTNERSHIPS: | | | | | | | | | | | | | | | |
| 400 CAPITAL CREDIT OPPORTUNITIES FUND LP | | | 2, 3 | | | $ | 375,000 | | | $ | 448,425 | | | | |
| ELLIOTT ASSOCIATES LP CL A | | | 2, 3 | | | | 2,000,000 | | | | 4,096,301 | | | | |
| ELLIOTT ASSOCIATES LP CL B | | | 2, 2 | | | | 759,000 | | | | 776,311 | | | | |
| GRAHAM GROWTH PARTNERS, LP | | | 2, 3 | | | | 1,000,000 | | | | 1,128,062 | | | | |
| GREENLIGHT MASTERS QUALIFIED LP | | | 2, 3 | | | | 2,500,000 | | | | 3,139,664 | | | | |
| INFINITY PREMIER FUND, LP | | | 2, 3 | | | | 2,500,000 | | | | 2,600,115 | | | | |
| LITESPEED PARTNERS, LP | | | 2, 3 | | | | 2,500,000 | | | | 2,096,863 | | | | |
| MORROCROFT SPECIAL OPPORTUNITY FUND II, LP | | | 2, 3 | | | | - | | | | 351,344 | | | | |
| OAKTREE ENHANCED INCOME FUND II, LP | | | 2, 3 | | | | 2,275,314 | | | | 2,213,531 | | | | |
| PASSPORT LONG SHORT FUND | | | 2, 3 | | | | 1,000,000 | | | | 1,047,769 | | | | |
| PRIVET FUND LP | | | 2, 3 | | | | 1,000,000 | | | | 1,213,314 | | | | |
| SERENGETI MULTI SERIES LLC | | | 2, 3 | | | | 158,377 | | | | 236,473 | | | | |
| STARK INVESTMENTS LP | | | 2, 3 | | | | 49,590 | | | | 126,911 | | | | |
| STARK STRUCTURED FINANCE ONSHORE FUND | | | 2, 3 | | | | 13,352 | | | | 11,225 | | | | |
| TERRA ARGENTINE FUND LP | | | 2, 3 | | | | 250,000 | | | | 360,150 | | | | |
| VIRGO SOCIETAS III (ONSHORE) LP | | | 2, 3 | | | | 1,755,403 | | | | 1,955,924 | | | | |
| WALNUT INVESTMENT PARTNERS | | | 2, 3 | | | | 235,567 | | | | - | | | | |
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A1 | | | 2, 3 | | | | 500,000 | | | | 503,343 | | | | |
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A9 | | | 2, 3 | | | | 100,000 | | | | 97,899 | | | | |
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A10 | | | 2, 3 | | | | 100,000 | | | | 98,208 | | | | |
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A11 | | | 2, 3 | | | | 100,000 | | | | 98,693 | | | | |
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A12 | | | 2, 3 | | | | 100,000 | | | | 98,402 | | | | |
| WORLDWIDE OPPORTUNITY FUND (CAYMAN) LTD. CL A-A13 | | | 2, 3 | | | | 100,000 | | | | 101,679 | | | | |
| TOTAL LIMITED PARTNERSHIPS | | | | | | | 19,371,603 | | | | 22,800,606 | | | 22.24 | % |
| | | | | | | | | | | | | | | | |
| TOTAL OTHER INVESTMENTS | | | | | | $ | 19,371,603 | | | $ | 22,800,606 | | | 22.24 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | | | | Percent | |
| Sectors and | | Shares | | | | | | | | | | | Market | | | of Net | |
| Industries | | Held | | | Company Name | | | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | | | | | | |
| COMMON STOCKS: | | | | | | | | | | | | | | | | | | | | | | |
| CONSUMER DISCRETIONARY | | | | | | | | | | | | | | | | | | | | | | |
| Automobiles & Components | | | 3,500.00 | | | FERRARI N V COM | | | | | | $ | 127,753 | | | $ | 160,475 | | | | | |
| | | | 35,000.00 | | | FIAT CHRYSLER AUTOMOBILES | | | | | | | 242,652 | | | | 283,150 | | | | | |
| | | | | | | | | | | | | | 370,405 | | | | 443,625 | | | | 0.43 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Consumer Services | | | 50,000.00 | | | ARCOS DORADOS HOLDINGS INC CL A | | | 3 | | | | 368,756 | | | | 207,500 | | | | 0.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Hotels, Restaurants & Leisure | | | 75,000.00 | | | SEAWORLD ENTERTAINMENT INC COM | | | | | | | 1,384,103 | | | | 1,494,750 | | | | 1.46 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Media | | | 15,000.00 | | | DISCOVERY COMMUNICATIONS NEW COM | | | 3 | | | | 441,711 | | | | 401,700 | | | | | |
| | | | 15,000.00 | | | TIME WARNER INC COM NEW | | | | | | | 1,210,848 | | | | 1,127,100 | | | | | |
| | | | | | | | | | | | | | 1,652,559 | | | | 1,528,800 | | | | 1.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Retailing | | | 5,000.00 | | | CATO CORP NEW CL A | | | | | | | 160,837 | | | | 182,950 | | | | 0.18 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL CONSUMER DISCRETIONARY | | | | | | | | | | | | | 3,936,660 | | | | 3,857,625 | | | | 3.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| CONSUMER STAPLES | | | | | | | | | | | | | | | | | | | | | | |
| Food & Staples Retailing | | | 1,000.00 | | | CVS HEALTH CORP COM | | | | | | | 104,295 | | | | 100,500 | | | | | |
| | | | 5,000.00 | | | WAL MART STORES INC COM | | | | | | | 297,313 | | | | 334,350 | | | | | |
| | | | | | | | | | | | | | 401,608 | | | | 434,850 | | | | 0.42 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Food, Beverage & Tobacco | | | 1,000.00 | | | ANHEUSER-BUSCH INBEV SA/NV | | | | | | | 116,553 | | | | 124,180 | | | | | |
| | | | 7,500.00 | | | COCA COLA FEMSA S A B SPON | | | | | | | 699,467 | | | | 654,675 | | | | | |
| | | | 2,000.00 | | | CONSTELLATION BRANDS CL A | | | | | | | 181,438 | | | | 312,120 | | | | | |
| | | | 3,500.00 | | | GENERAL MILLS INC COM | | | | | | | 122,082 | | | | 214,690 | | | | | |
| | | | 10,000.00 | | | NESTLE S A SPONSORED ADR | | | | | | | 396,900 | | | | 745,700 | | | | | |
| | | | 7,500.00 | | | PEPSICO INC COM | | | | | | | 617,894 | | | | 772,200 | | | | | |
| | | | 8,000.00 | | | REYNOLDS AMERICAN INC COM | | | | | | | 143,516 | | | | 396,800 | | | | | |
| | | | 2,000.00 | | | SMUCKER J M CO COM NEW COM | | | | | | | 121,939 | | | | 253,960 | | | | | |
| | | | 1,000.00 | | | WHITEWAVE FOODS CO COM CL | | | 3 | | | | 24,151 | | | | 40,210 | | | | | |
| | | | | | | | | | | | | | 2,423,940 | | | | 3,514,535 | | | | 3.43 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Household & Personal Products | | | 11,500.00 | | | PROCTER & GAMBLE CO COM | | | | | | | 840,716 | | | | 921,380 | | | | 0.90 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL CONSUMER STAPLES | | | | | | | | | | | | | 3,666,264 | | | | 4,870,765 | | | | 4.75 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | | | | Percent | |
| Sectors and | | Shares | | | | | | | | | | | Market | | | of Net | |
| Industries | | Held | | | Company Name | | | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | | | | | | |
| COMMON STOCKS: | | | | | | | | | | | | | | | | | |
| ENERGY | | | | | | | | | | | | | | | | | | | | | | |
| Energy | | | 449.00 | | | CALIFORNIA RES CORP COM | | | 3 | | | | 626 | | | | 988 | | | | | |
| | | | 3,800.00 | | | CHEVRON CORP | | | | | | | 402,913 | | | | 388,284 | | | | | |
| | | | 5,404.00 | | | EXXON MOBIL CORP COM | | | | | | | 454,007 | | | | 477,713 | | | | | |
| | | | 8,000.00 | | | HOLLYFRONTIER CORP COM | | | | | | | 298,885 | | | | 284,800 | | | | | |
| | | | 4,800.00 | | | OCCIDENTAL PETROLEUM COM | | | | | | | 380,566 | | | | 367,920 | | | | | |
| | | | 3,500.00 | | | PHILLIPS 66 COM | | | | | | | 278,831 | | | | 287,385 | | | | | |
| | | | 1,500.00 | | | ROYAL DUTCH SHELL ADR A | | | | | | | 100,413 | | | | 79,335 | | | | | |
| | | | 2,000.00 | | | SCHLUMBERGER LTD COM | | | | | | | 144,832 | | | | 160,680 | | | | | |
| | | | 2,000.00 | | | VALERO ENERGY CORP COM | | | | | | | 113,895 | | | | 117,740 | | | | | |
| | | | | | | | | | | | | | 2,174,968 | | | | 2,164,845 | | | | 2.11 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Pipelines | | | 3,000.00 | | | BP PRUDHOE BAY ROYALTY TRU | | | | | | | 256,047 | | | | 49,530 | | | | | |
| | | | 2,000.00 | | | BUCKEYE PARTNERS LP COM | | | | | | | 124,792 | | | | 144,000 | | | | | |
| | | | 16,000.00 | | | ENERGY TRANSFER EQUITY LP | | | | | | | 150,093 | | | | 198,880 | | | | | |
| | | | 1,500.00 | | | SPECTRA ENERGY PARTNERS LP | | | | | | | 66,572 | | | | 75,645 | | | | | |
| | | | 3,000.00 | | | WILLIAMS COS INC DEL COM | | | | | | | 109,005 | | | | 58,170 | | | | | |
| | | | | | | | | | | | | | 706,509 | | | | 526,225 | | | | 0.51 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL ENERGY | | | | | | | | | | | | | 2,881,477 | | | | 2,691,070 | | | | 2.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| FINANCIALS | | | | | | | | | | | | | | | | | | | | | | |
| Banks | | | 30,000.00 | | | ALLY FINANCIAL INC COM | | | 3 | | | | 624,448.00 | | | | 534,300.00 | | | | | |
| | | | 3,000.00 | | | BANK OF AMERICA CORP COM | | | | | | | 50,497 | | | | 43,680 | | | | | |
| | | | 5,000.00 | | | BB&T CORP COM | | | | | | | 172,165 | | | | 176,900 | | | | | |
| | | | 12,000.00 | | | BLUEHARBOR BANK NC COM | | | 3 | | | | 90,150 | | | | 90,000 | | | | | |
| | | | 2,500.00 | | | WELLS FARGO & CO DEL COM | | | | | | | 113,117 | | | | 124,950 | | | | | |
| | | | | | | | | | | | | | 1,050,377 | | | | 969,830 | | | | 0.95 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Diversified Financials | | | 5,000.00 | | | ANNALY CAPITAL MGMT INC | | | | | | | 82,125 | | | | 52,100 | | | | | |
| | | | 2,500.00 | | | BERKSHIRE HATHAWAY INC CL B | | | 3 | | | | 185,406 | | | | 363,700 | | | | | |
| | | | 4,000.00 | | | CALAMOS ASSET MGMT INC | | | | | | | 51,070 | | | | 32,960 | | | | | |
| | | | 78,455.00 | | | CAPITALA FINANCE CORP COM | | | | | | | 1,363,703 | | | | 1,061,496 | | | | | |
| | | | 4,000.00 | | | CARLYLE GROUP LP COM | | | | | | | 111,750 | | | | 66,960 | | | | | |
| | | | 1,300.00 | | | CME GROUP | | | | | | | 71,797 | | | | 119,483 | | | | | |
| | | | 15,000.00 | | | GOLUB CAPITAL BDC INC COM | | | | | | | 226,480 | | | | 263,250 | | | | | |
| | | | 1,000.00 | | | NEW YORK MTG TR INC COM PA | | | | | | | 8,055 | | | | 5,200 | | | | | |
| | | | 30,000.00 | | | OAKTREE CAPITAL GROUP LLC UNIT | | | | | | | 1,299,803 | | | | 1,449,300 | | | | | |
| | | | 10,000.00 | | | PAYPAL HLDGS INC COM | | | 3 | | | | 306,102 | | | | 391,800 | | | | | |
| | | | 4,000.00 | | | THE BLACKSTONE GROUP LP | | | | | | | 119,065 | | | | 109,760 | | | | | |
| | | | | | | | | | | | | | 3,825,356 | | | | 3,916,009 | | | | 3.82 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Insurance | | | 1,500.00 | | | AON PLC SHS CL A | | | | | | | 121,687 | | | | 157,680 | | | | | |
| | | | 1,000.00 | | | METLIFE INC COM | | | | | | | 32,265 | | | | 45,100 | | | | | |
| | | | 2,500.00 | | | TRAVELERS COMPANIES COM | | | | | | | 203,356 | | | | 274,750 | | | | | |
| | | | 4,000.00 | | | ZURICH INS GROUP LTD SPONS ARD | | | | | | | 122,260 | | | | 89,600 | | | | | |
| | | | | | | | | | | | | | 479,568 | | | | 567,130 | | | | 0.55 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | | | | Percent | |
| Sectors and | | Shares | | | | | | | | | | | Market | | | of Net | |
| Industries | | Held | | | Company Name | | | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | | | | | | |
| COMMON STOCKS: | | | | | | | | | | | | | | | | | | | | | | |
| Real Estate | | | 1,000.00 | | | DIGITAL RLTY TR INC COM | | | | | | | 58,864 | | | | 87,980 | | | | | |
| | | | 6,000.00 | | | EASTERLY GOVT PPTYS COM | | | | | | | 94,785 | | | | 110,700 | | | | | |
| | | | 1,000.00 | | | GEO GROUP INC COM | | | | | | | 32,717 | | | | 32,030 | | | | | |
| | | | 10,000.00 | | | HANNON ARMSTRONG SUST COM | | | | | | | 153,105 | | | | 194,000 | | | | | |
| | | | 10,000.00 | | | IRSA INVERSIONES Y REPRESENTACIONES | | | | | | | 107,792 | | | | 148,300 | | | | | |
| | | | 62,450.00 | | | KENNEDY-WILSON EUROPE REAL | | | | | | | 1,129,633 | | | | 996,250 | | | | | |
| | | | 15,000.00 | | | MEDICAL PPTYS TR INC COM | | | | | | | 185,835 | | | | 199,650 | | | | | |
| | | | 2,000.00 | | | OMEGA HEALTHCARE INVS COM | | | | | | | 60,291 | | | | 67,540 | | | | | |
| | | | 500.00 | | | W P CAREY & CO LLC COM | | | | | | | 31,927 | | | | 30,545 | | | | | |
| | | | | | | | | | | | | | 1,854,949 | | | | 1,866,995 | | | | 1.82 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL FINANCIALS | | | | | | | | | | | | | 7,210,250 | | | | 7,319,964 | | | | 7.14 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| HEALTH CARE | | | | | | | | | | | | | | | | | | | | | | |
| Health Care Equipment & Services | | | 2,000.00 | | | AMERISOURCEBERGEN CORP COM | | | | | | | 57,550 | | | | 170,200 | | | | | |
| | | | 5,000.00 | | | DAVITA HEALTHCARE PART COM | | | 3 | | | | 308,926 | | | | 369,500 | | | | | |
| | | | 3,550.00 | | | LABORATORY CORP AMER HLDGS | | | 3 | | | | 329,250 | | | | 444,886 | | | | | |
| | | | 4,000.00 | | | QUEST DIAGNOSTICS INC COM | | | | | | | 222,640 | | | | 300,680 | | | | | |
| | | | 4,000.00 | | | ROCHE HLDG LTD SPONS ADR | | | | | | | 129,261 | | | | 126,280 | | | | | |
| | | | 1,500.00 | | | VARIAN MEDICAL SYSTEMS INC | | | 3 | | | | 68,108 | | | | 121,770 | | | | | |
| | | | | | | | | | | | | | 1,115,735 | | | | 1,533,316 | | | | 1.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Pharmaceuticals & Biotechnology | | | 10,000.00 | | | ASTRAZENECA PLC SPONSORED | | | | | | | 235,531 | | | | 289,600 | | | | | |
| | | | 1,000.00 | | | JOHNSON & JOHNSON COM | | | | | | | 91,105 | | | | 112,080 | | | | | |
| | | | 3,000.00 | | | ELI LILLY & CO COM | | | | | | | 132,158 | | | | 226,590 | | | | | |
| | | | 2,000.00 | | | MERCK & CO INC COM | | | | | | | 106,332 | | | | 109,680 | | | | | |
| | | | 26,500.00 | | | PFIZER INC COM | | | | | | | 533,833 | | | | 866,815 | | | | | |
| | | | 1,000.00 | | | SEATTLE GENETICS INC COM | | | 3 | | | | 17,684 | | | | 35,480 | | | | | |
| | | | 1,000.00 | | | TEVA PHARMACEUTCL INDS ADR | | | | | | | 50,285 | | | | 54,450 | | | | | |
| | | | | | | | | | | | | | 1,166,928 | | | | 1,694,695 | | | | 1.65 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL HEALTH CARE | | | | | | | | | | | | | 2,282,663 | | | | 3,228,011 | | | | 3.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| INDUSTRIALS | | | | | | | | | | | | | | | | | | | | | | |
| Capital Goods | | | 500.00 | | | 3M COMPANY | | | | | | | 71,565 | | | | 83,690 | | | | | |
| | | | 12,500.00 | | | ROLLS ROYCE HOLDINGS SPONS | | | | | | | 143,217 | | | | 123,250 | | | | | |
| | | | 1,000.00 | | | WABTEC CORP COM | | | | | | | 59,525 | | | | 82,930 | | | | | |
| | | | | | | | | | | | | | 274,307 | | | | 289,870 | | | | 0.28 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Commercial Services & Supplies | | | 1,000.00 | | | ECOLAB INC COM | | | | | | | 105,289 | | | | 114,980.00 | | | | | |
| | | | 2,000.00 | | | STERICYCLE INC COM | | | 3 | | | | 201,180 | | | | 191,120 | | | | | |
| | | | 6,000.00 | | | US ECOLOGY INC COM | | | | | | | 122,962 | | | | 270,180 | | | | | |
| | | | 500.00 | | | WASTE MGMT INC DEL COM | | | | | | | 17,412 | | | | 29,395 | | | | | |
| | | | | | | | | | | | | | 446,843 | | | | 605,675 | | | | 0.59 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | | | | Percent | |
| Sectors and | | Shares | | | | | | | | | | | Market | | | of Net | |
| Industries | | Held | | | Company Name | | | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | | | | | | |
| COMMON STOCKS: | | | | | | | | | | | | | | | | | | | | | | |
| Transportation | | | 1,000.00 | | | NORFOLK SOUTHERN CORP COM | | | | | | | 73,330 | | | | 90,110 | | | | 0.09 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL INDUSTRIALS | | | | | | | | | | | | | 794,480 | | | | 985,655 | | | | 0.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| INFORMATION TECHNOLOGY | | | | | | | | | | | | | | | | | | | | | | |
| Semiconductors & Semiconductor Equipment | | | 3,500.00 | | | INTEL CORP COM | | | | | | | 73,337 | | | | 105,980 | | | | 0.10 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Software & Services | | | 601.00 | | | ALPHABET INC CAP STK CL C | | | 3 | | | | 310,940 | | | | 416,499 | | | | | |
| | | | 19,500.00 | | | CDK GLOBAL INC COM | | | | | | | 805,721 | | | | 927,615 | | | | | |
| | | | 25,000.00 | | | EBAY INC COM | | | 3 | | | | 560,281 | | | | 610,750 | | | | | |
| | | | 3,500.00 | | | MICROSOFT CORP COM | | | | | | | 87,412 | | | | 174,545 | | | | | |
| | | | 4,000.00 | | | ORACLE CORP COM | | | | | | | 110,847 | | | | 159,440 | | | | | |
| | | | | | | | | | | | | | 1,875,201 | | | | 2,288,849 | | | | 2.23 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Technology Hardware & Equipment | | | 3,500.00 | | | APPLE INC COM | | | | | | | 275,010 | | | | 328,090 | | | | | |
| | | | 5,700.00 | | | CISCO SYSTEMS INC COM | | | | | | | 111,359 | | | | 156,693 | | | | | |
| | | | 2,500.00 | | | CORNING INC COM | | | | | | | 51,787 | | | | 46,675 | | | | | |
| | | | 5,000.00 | | | EMC CORP MASS COM | | | | | | | 123,828 | | | | 130,550 | | | | | |
| | | | 6,000.00 | | | QUALCOMM INC COM | | | | | | | 356,810 | | | | 303,120 | | | | | |
| | | | 500.00 | | | SYNAPTICS INC COM | | | 3 | | | | 33,775 | | | | 35,775 | | | | | |
| | | | | | | | | | | | | | 952,569 | | | | 1,000,903 | | | | 0.98 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL INFORMATION TECHNOLOGY | | | | | | | | | | | | | 2,901,107 | | | | 3,395,732 | | | | 3.31 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| MATERIALS | | | 1,580.00 | | | DOW CHEMICAL CO COM | | | | | | | 81,482 | | | | 83,124 | | | | | |
| | | | 2,000.00 | | | RPM INTL INC COM | | | | | | | 42,340 | | | | 101,060 | | | | | |
| TOTAL MATERIALS | | | | | | | | | | | | | 123,822 | | | | 184,184 | | | | 0.18 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| TELECOMMUNICATION SERVICES | | | 2,000.00 | | | AMERICA MOVIL SA DE CV SPO | | | | | | | 55,017 | | | | 28,320 | | | | | |
| | | | 3,000.00 | | | AT&T CORP COM | | | | | | | 84,046 | | | | 116,460 | | | | | |
| | | | 4,500.00 | | | BCE INC COM | | | | | | | 191,785 | | | | 211,095 | | | | | |
| | | | 3,000.00 | | | ORANGE SPONSORED ADR | | | | | | | 47,540 | | | | 49,770 | | | | | |
| | | | 10,000.00 | | | SINGAPORE TELECOMM LTD ADR | | | | | | | 290,885 | | | | 284,200 | | | | | |
| | | | 2,000.00 | | | SK TELECOM LTD SPONSORED A | | | | | | | 27,904 | | | | 40,000 | | | | | |
| | | | 2,000.00 | | | TELECOM ARGENTINA SA | | | | | | | 36,419 | | | | 37,440 | | | | | |
| | | | 1,000.00 | | | TELEFONICA BRASIL S.A. | | | | | | | 28,025 | | | | 12,320 | | | | | |
| | | | 6,691.00 | | | TELEFONICA S A SPONSORED ADR | | | | | | | 110,736 | | | | 72,999 | | | | | |
| TOTAL TELECOMMUNICATION SERVICES | | | | | | | | | | | | | 872,357 | | | | 852,604 | | | | 0.83 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | | | | Percent | |
| Sectors and | | Shares | | | | | | | | | | | Market | | | of Net | |
| Industries | | Held | | | Company Name | | | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | | | | | | |
| COMMON STOCKS: | | | | | | | | | | | | | | | | | | | | | | |
| UTILITIES | | | 2,000.00 | | | AMERICAN ELEC PWR INC COM | | | | | | | 79,050 | | | | 127,000 | | | | | |
| | | | 500.00 | | | AMERICAN STS WTR CO COM | | | | | | | 19,159 | | | | 20,845 | | | | | |
| | | | 8,000.00 | | | AMERIGAS PARTNERS LP COM | | | | | | | 348,077 | | | | 346,800 | | | | | |
| | | | 5,000.00 | | | BROOKFIELD INFRASTRUCTURE | | | | | | | 143,408 | | | | 210,900 | | | | | |
| | | | 4,643.00 | | | CPFL ENERGIA S A SPONSORED | | | 3 | | | | 103,003 | | | | 53,766 | | | | | |
| | | | 6,500.00 | | | DOMINION RES INC VA COM | | | | | | | 330,756 | | | | 464,555 | | | | | |
| | | | 14,187.00 | | | DUKE ENERGY CORP COM | | | | | | | 833,466 | | | | 1,117,652 | | | | | |
| | | | 1,000.00 | | | ENTERGY CORP NEW COM | | | | | | | 69,388 | | | | 75,180 | | | | | |
| | | | 3,000.00 | | | SOUTHERN CO COM | | | | | | | 122,610 | | | | 150,300 | | | | | |
| | | | 2,256.00 | | | WEC ENERGY GROUP INC COM | | | | | | | 89,900 | | | | 131,322 | | | | | |
| TOTAL UTILITIES | | | | | | | | | | | | | 2,138,817 | | | | 2,698,320 | | | | 2.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL INVESTMENTS IN COMMON STOCKS | | | | | | | | | | | | $ | 26,807,897 | | | $ | 30,083,930 | | | | 29.35 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | | Percent | |
| | | | | | Contracts | | | | | | Market | | | of Net | |
| Company Name | | | | | Held | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | | | | |
| CALL OPTIONS: | | | | | | | | | | | | | | | | | | | | |
| ALLY FINANCIAL INC CALL OPTION, $25 EXP 1/20/17 | | | 3 | | | | 150 | | | $ | 33,099 | | | $ | 750 | | | | | |
| AMERICAN EXPRESS CLL OPTION, $60 EXP 1/19/18 | | | 3 | | | | 50 | | | | 32,577 | | | | 51,000 | | | | | |
| SEAWORLD ENTERTAINMENT CALL OPTION, $20 EXP 1/20/17 | | | 3 | | | | 50 | | | | 6,397 | | | | 8,000 | | | | | |
| TOTAL CALL OPTIONS | | | | | | | | | | | 72,073 | | | | 59,750 | | | | 0.06 | % |
| | | | | | | | | | | | | | | | | | | | | |
| TOTAL INVESTMENTS IN OPTIONS | | | | | | | | | | $ | 72,073 | | | $ | 59,750 | | | | 0.06 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Continued) (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | Percent | |
| | | Shares | | | | | | Market | | | of Net | |
| Company Name | | Held | | | Cost | | | Value | | | Assets | |
| | | | | | | | | | | | | |
| PREFERRED STOCKS: | | | | | | | | | | | | | | | | |
| BANK OF AMERICA CORP FLOATING RATE | | | 300,000.00 | | | $ | 319,500 | | | $ | 319,500 | | | | | |
| WACHOVIA CAP TRUST III | | | 500,000.00 | | | $ | 487,500 | | | $ | 498,750 | | | | | |
| | | | | | | | | | | | | | | | | |
| TOTAL INVESTMENTS IN PREFERRED STOCKS | | | | | | $ | 807,000 | | | $ | 818,250 | | | | 0.80 | % |
| BMC FUND, INC. |
| SCHEDULE OF INVESTMENTS (Concluded) (Unaudited) |
| April 30, 2016 |
| | | | | | | | Market | | | Percent of | |
| | | Company Name | | Cost | | | Value | | | Net Assets | |
| | | | | | | | | | | | |
| Short-term Investments | | MFB NI Treasury Money Market Fund | | $ | 19,643,079 | | | $ | 19,643,079 | | | | 19.16 | % |
| | | | | | | | | | | | | | | |
| TOTAL INVESTMENTS - MARKET VALUE | | | | | | | 99,985,277 | | | | 97.53 | % |
| | | | | | | | | | | | | |
| TOTAL OTHER ASSETS IN EXCESS OF LIABILITIES | | | | | | | 2,532,346 | | | | 2.47 | % |
| | | | | | | | | | | | | |
| TOTAL NET ASSETS | | | | | | $ | 102,517,623 | | | | 100.00 | % |
1In default
2Market value determined by the Fund's Board of Directors
3Non-income producing security
| BMC FUND, INC. |
| SCHEDULE OF OPEN WRITTEN OPTION CONTRACTS (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | Percent | |
| | | | | Contracts | | | | | | Market | | | of Net | |
| Company Name | | | | Held | | | Cost | | | Value | | | Assets | |
| CALL OPTIONS: | | | | | | | | | | | | | | | | | | |
| AMERISOURCEBERGEN CALL OPTION, $92.50 EXP 8/19/16 | | 3 | | | (20 | ) | | $ | (6,269 | ) | | $ | (2,300 | ) | | | | |
| ANHEUSER-BUSCH CALL OPTION, $130 EXP 9/16/16 | | 3 | | | (10 | ) | | | (4,185 | ) | | | (4,700 | ) | | | | |
| BB&T CORP CALL OPTION, $35 EXP 9/16/16 | | 3 | | | (20 | ) | | | (2,769 | ) | | | (3,800 | ) | | | | |
| CME GROUP INC CALL OPTION, $105 EXP 9/16/16 | | 3 | | | (10 | ) | | | (2,535 | ) | | | (450 | ) | | | | |
| DAVITA INC CALL OPTION, $75 EXP 10/21/16 | | 3 | | | (25 | ) | | | (6,836 | ) | | | (7,500 | ) | | | | |
| DUKE ENERGY CO CALL OPTION, $80 EXP 7/15/16 | | 3 | | | (50 | ) | | | (6,029 | ) | | | (5,050 | ) | | | | |
| DUKE ENERGY CO CALL OPTION, $85 EXP 10/21/16 | | 3 | | | (6 | ) | | | (802 | ) | | | (360 | ) | | | | |
| ECOLAB INC CALL OPTION, $120 EXP 10/21/16 | | 3 | | | (10 | ) | | | (2,335 | ) | | | (3,800 | ) | | | | |
| FIAT CHRYSLER CALL OPTION, $8 EXP 6/17/16 | | 3 | | | (175 | ) | | | (5,080 | ) | | | (9,625 | ) | | | | |
| FIAT CHRYSLER CALL OPTION, $8 EXP 9/16/16 | | 3 | | | (175 | ) | | | (10,230 | ) | | | (14,000 | ) | | | | |
| MERCK & CO INC CALL OPTION, $57.50 EXP 1/20/17 | | 3 | | | (15 | ) | | | (1,950 | ) | | | (3,030 | ) | | | | |
| SPDR GOLD TRUST CALL OPTION, $120 EXP 6/17/16 | | 3 | | | (50 | ) | | | (23,223 | ) | | | (27,350 | ) | | | | |
| SPECTRA ENERGY CALL OPTION, $50 EXP 6/17/16 | | 3 | | | (15 | ) | | | (2,567 | ) | | | (2,850 | ) | | | | |
| US ECOLOGY INC CALL OPTION, $50 EXP 9/16/16 | | 3 | | | (30 | ) | | | (3,704 | ) | | | (450 | ) | | | | |
| VANECK VECTOR GOLD CALL OPTION, $22 EXP 6/17/16 | | 3 | | | (50 | ) | | | (5,225 | ) | | | (21,250 | ) | | | | |
| VANECK VECTOR GOLD CALL OPTION, $23 EXP 9/16/16 | | 3 | | | (50 | ) | | | (7,273 | ) | | | (22,000 | ) | | | | |
| VANECK VECTOR GOLD CALL OPTION, $24 EXP 1/20/17 | | 3 | | | (50 | ) | | | (9,422 | ) | | | (23,700 | ) | | | | |
| TOTAL CALL OPTIONS - LIABILITIES | | | | | | | | | (100,434 | ) | | | (152,215 | ) | | | -0.15 | % |
| BMC FUND, INC. |
| SCHEDULE OF OPEN WRITTEN OPTION CONTRACTS (Unaudited) |
| April 30, 2016 |
| | | | | | | | | | | | | | Percent | |
| | | | | Contracts | | | | | | Market | | | of Net | |
| Company Name | | | | Held | | | Cost | | | Value | | | Assets | |
| PUT OPTIONS: | | | | | | | | | | | | | | | | | | |
| 3M CO PUT OPTION, $130 EXP 7/15/16 | | 3 | | | (10 | ) | | | (6,284 | ) | | | (250 | ) | | | | |
| ACUITY BRANDS PUT OPTION, $190 EXP 11/18/16 | | 3 | | | (15 | ) | | | (17,976 | ) | | | (6,300 | ) | | | | |
| ALIBABA GROUP PUT OPTION, $60 EXP 7/15/16 | | 3 | | | (20 | ) | | | (5,769 | ) | | | (720 | ) | | | | |
| ALLY FINANCIAL INC PUT OPTION, $15 EXP 1/20/17 | | 3 | | | (50 | ) | | | (8,423 | ) | | | (4,250 | ) | | | | |
| ALLY FINANCIAL INC PUT OPTION, $15 EXP 6/17/16 | | 3 | | | (50 | ) | | | (4,173 | ) | | | (250 | ) | | | | |
| ALLY FINANCIAL INC PUT OPTION, $15 EXP 9/16/16 | | 3 | | | (50 | ) | | | (5,923 | ) | | | (2,000 | ) | | | | |
| ALPHABET INC PUT OPTION, $600 EXP 1/20/17 | | 3 | | | (3 | ) | | | (13,015 | ) | | | (6,876 | ) | | | | |
| ALPHABET INC PUT OPTION, $700 EXP 6/17/16 | | 3 | | | (5 | ) | | | (19,592 | ) | | | (11,900 | ) | | | | |
| ALPHABET INC PUT OPTION, $700 EXP 9/16/16 | | 3 | | | (6 | ) | | | (18,530 | ) | | | (26,070 | ) | | | | |
| AMAZON.COM INC PUT OPTION, $430 EXP 1/20/17 | | 3 | | | (4 | ) | | | (12,594 | ) | | | (3,000 | ) | | | | |
| AMAZON.COM INC PUT OPTION, $450 EXP 1/20/17 | | 3 | | | (3 | ) | | | (9,445 | ) | | | (2,835 | ) | | | | |
| AMAZON.COM INC PUT OPTION, $500 EXP 7/15/16 | | 3 | | | (5 | ) | | | (10,992 | ) | | | (900 | ) | | | | |
| APPLE INC PUT OPTION, $85 EXP 10/21/16 | | 3 | | | (70 | ) | | | (40,941 | ) | | | (25,200 | ) | | | | |
| APPLE INC PUT OPTION, $90 EXP 7/15/16 | | 3 | | | (10 | ) | | | (5,015 | ) | | | (2,810 | ) | | | | |
| BLACKSTONE GROUP PUT OPTION, $21 EXP 9/16/16 | | 3 | | | (25 | ) | | | (3,711 | ) | | | (1,000 | ) | | | | |
| BLACKSTONE GROUP PUT OPTION, $25 EXP 9/16/16 | | 3 | | | (20 | ) | | | (5,469 | ) | | | (2,640 | ) | | | | |
| CINTAS CORP PUT OPTION, $75 EXP 8/19/16 | | 3 | | | (20 | ) | | | (5,969 | ) | | | (1,000 | ) | | | | |
| COMMSCOPE HLDG PUT OPTION, $19 EXP 8/19/16 | | 3 | | | (40 | ) | | | (5,138 | ) | | | (200 | ) | | | | |
| HOLOGIC INC PUT OPTION, $35 EXP 6/17/16 | | 3 | | | (30 | ) | | | (5,504 | ) | | | (5,550 | ) | | | | |
| INTEL CORP PUT OPTION, $25 EXP 10/21/16 | | 3 | | | (25 | ) | | | (3,112 | ) | | | (1,500 | ) | | | | |
| WAYFAIR INC PUT OPTION, $30 EXP 5/20/16 | | 3 | | | (25 | ) | | | (11,211 | ) | | | (1,675 | ) | | | | |
| WHITEWAVE FOODS PUT OPTION, $35 EXP 10/21/16 | | 3 | | | (20 | ) | | | (4,069 | ) | | | (2,700 | ) | | | | |
| TOTAL PUT OPTIONS - LIABILITIES | | | | | | | | | (222,855 | ) | | | (109,626 | ) | | | -0.11 | % |
| | | | | | | | | | | | | | | | | | | |
| TOTAL CALL AND PUT OPTIONS - LIABILITIES | | | | | | | | $ | (323,289 | ) | | $ | (261,841 | ) | | | -0.26 | % |
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 President 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 President 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 8, 2016
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/ M. Hunt Broyhill | |
| M. Hunt Broyhill | |
| Chairman and President | |
| | |
| Date: June 8, 2016 | |
| | |
| By | |
| | |
| /s/ Boyd C. Wilson, Jr. | |
| Boyd C. Wilson, Jr. | |
| Vice President and | |
| Chief Financial Officer | |
| | |
| Date: June 8, 2016 | |
