UNITED STATES
SECURITES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-3150
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: 828-758-6100
Date of fiscal year end: October 31, 2004
Date of reporting period: April 30, 2004
Item 1. Report to Stockholders.
BMC FUND, INC.
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
Six Months Ended April 30, 2004
CONFIDENTIAL: For the use of shareholders and
the Securities and Exchange Commission only.
BMC FUND, INC.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page No.
--------
Directors and Officers................................................ 1
Letter to Shareholders................................................ 2
Statement of Assets and Liabilities................................... 3
Statement of Operations............................................... 4
Statements of Changes In Net Assets................................... 5
Notes to Financial Statements......................................... 6
Financial Highlights.................................................. 10
Schedules of Investments:
I. - Investments in Securities of Unaffiliated Issuers........ 11
II. - Investments - Other than Securities..................... 27
III. - Investments in Affiliates................................ 28
BMC FUND, INC.
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
DIRECTORS
James T. Broyhill Winston-Salem, North Carolina
Paul H. Broyhill Lenoir, North Carolina
William E. Cooper Dallas, Texas
Lawrence Z. Crockett Vero Beach, Florida
Jan E. Gordon Palm Harbor, Florida
Allene B. Heilman Clearwater, Florida
Gene A. Hoots Charlotte, North Carolina
Michael G. Landry Fort Lauderdale, Florida
John S. Little Naples, Florida
L. Glenn Orr, Jr. Winston-Salem, North Carolina
OFFICERS
Paul H Broyhill President
M Hunt Broyhill Vice President
Gene Hendricks Vice President and
Chief Financial Officer
Michael G Landry Vice President and
Chief Investment Officer
Carol Frye Secretary and Treasurer
DIRECTOR EMERITUS
Harry Heltzer Lenoir, North Carolina
1
TO OUR SHAREHOLDERS:
We are happy to present to you our semi-annual report (unaudited), 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, 2004 the Fund paid the following dividends
per share:
December 10, 2003 to shareholders of record November 25, 2003 $ .38
March 10, 2004 to shareholders of record February 25, 2004 .25
------
Total $ .63
======
Schedule I is a listing of all the Fund's diversified securities at April 30,
2004, with a total market value of $132,498,276.
It is our intent to render reports to shareholders each six months.
Paul H. Broyhill, President M. Hunt Broyhill, Vice President
CONFIDENTIAL: For the use of shareholders and
the Securities and Exchange Commission only.
2
BMC FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
April 30, 2004
================================================================================
ASSETS AT MARKET VALUE:
Investment securities (cost - $121,318,871) $132,498,276
Investments in affiliates - wholly owned subsidiaries (equity value $22,146,996) 24,786,940
Investment in real estate (cost $145,003) 350,000
Cash and short-term investments 517,789
Receivables, principally accrued interest 403,387
Receivable from broker 762,861
Other assets 42,445
------------
Total assets 159,361,698
------------
LIABILITIES:
Notes payable 10,000,000
Accounts payable and accrued expenses 101,412
------------
Total liabilities 10,101,412
------------
NET ASSETS AT APRIL 30, 2004 - EQUIVALENT TO $30.26 PER
SHARE ON 4,933,281 SHARES OF COMMON STOCK OUTSTANDING $149,260,286
============
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 92,939,370
Undistributed net investment income 7,495,703
Realized gain on investments 4,939,748
Undistributed nontaxable gain 5,194,714
Unrealized appreciation of investments 14,024,346
------------
NET ASSETS APPLICABLE TO COMMON STOCK OUTSTANDING $149,260,286
============
See accompanying notes to financial statements.
3
BMC FUND, INC.
STATEMENT OF OPERATIONS (Unaudited)
Six Months Ended April 30, 2004
================================================================================
INVESTMENT INCOME:
Income:
Interest-corporate bonds $ 381,205
Other interest and dividends 1,447,083
Equity in earnings of wholly-owned subsidiaries 732,680
----------
Total income 2,560,968
----------
Expenses:
Legal and professional fees 61,306
Directors' fees (Note 3) 19,000
Bank service charges 40,501
Interest expense 122,066
Investment expense 10,792
Salaries 198,896
Property and liability insurance 10,244
Depreciation expense 915
Taxes and licenses 27,357
Rent 7,050
Office supplies and expense 14,666
Travel and entertainment 37,158
----------
Total expenses 549,951
----------
Investment income, net 2,011,017
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain from investment securities sold 4,939,748
Change in unrealized appreciation of investments for the period 1,507,606
----------
Net gain on investments 6,447,354
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $8,458,371
==========
See accompanying notes to financial statements.
4
BMC FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
Six Months Ended April 30, 2004 and 2003
================================================================================
2004 2003
------------- -------------
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 2,011,017 $ 2,279,413
Net realized gain on investments 4,939,748 1,981,870
Change in unrealized appreciation 1,507,606 3,441,568
------------- -------------
Net increase in net assets resulting from operations 8,458,371 7,702,851
Distributions to shareholders from investment income, net (3,107,967) (2,466,640)
------------- -------------
TOTAL INCREASE IN NET ASSETS 5,350,404 5,236,211
NET ASSETS AT BEGINNING OF PERIOD 143,909,882 125,596,146
------------- -------------
NET ASSETS AT END OF PERIOD (Including
undistributed net investment income: 2004 - $7,495,703;
2003 - $5,951,601)
$ 149,260,286 $ 130,832,357
============= =============
See accompanying notes to financial statements.
5
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Six Months Ended April 30, 2004
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
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.
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. 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 securities
existed, and these differences could be material.
The carrying value of the investments in wholly owned subsidiaries
is based on an independent appraisal of the fair market value of the
subsidiaries. Equity in earnings of the wholly owned subsidiaries in
the statement of operations represents the current year earnings of
the subsidiaries accounted for using the equity method.
The carrying value of the investment in real estate is based on an
independent appraisal of the fair market value of the real estate.
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.
C. 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.
6
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Six Months Ended April 30, 2004
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. 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.
E. 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.
F. 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.
2. LINE OF CREDIT
On September 25, 2000 (modified on October 20, 2000 and renewed October
14, 2003), the Company entered into an agreement with a bank for an
unsecured line of credit in the amount of $10,000,000 to provide the
Company more flexibility in its payment of dividends and management of its
investments. The interest rate on any borrowings will be at the LIBOR
market index rate plus 125 basis points. No commitment fee is charged on
any unused balance. As of April 30, 2004, the Company had borrowings of
$10,000,000 from this line of credit, which expires on July 31, 2004.
3. 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.
7
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Six Months Ended April 30, 2004
================================================================================
4. SUPPLEMENTAL PROXY INFORMATION AND 2004 ANNUAL MEETING OF SHAREHOLDERS
The Annual Meeting of Shareholders of BMC Fund, Inc. was held on January 31,
2004 at The Registry Resort & Club, Naples, Florida. The meeting was held for
the following purposes:
1. To elect the following 10 directors to serve as follows:
Director Term Expiring
James T. Broyhill 1 year 2005
Paul H. Broyhill 1 year 2005
William E. Cooper 1 year 2005
Lawrence Z. Crockett 1 year 2005
Jan E. Gordon 1 year 2005
Allene B. Heilman 1 year 2005
Gene A. Hoots 1 year 2005
Michael G. Landry 1 year 2005
John S. Little 1 year 2005
L. Glenn Orr, Jr. 1 year 2005
2. To vote upon such other business as may come before the meeting.
The results of the proxy solicitation on the above matters were as follows:
Votes Votes Votes
Director For Against Withheld
James T. Broyhill 4,908,571 500 24,210
Paul H. Broyhill 4,908,571 500 24,210
William E. Cooper 4,908,571 500 24,210
Lawrence Z. Crockett 4,908,571 500 24,210
Jan E. Gordon 4,908,571 500 24,210
Allene B. Heilman 4,908,571 500 24,210
Gene A. Hoots 4,908,571 500 24,210
Michael G. Landry 4,908,571 500 24,210
John S. Little 4,908,571 500 24,210
L. Glenn Orr, Jr. 4,908,571 500 24,210
There was no other business voted upon at the Annual Meeting of Shareholders.
8
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Six Months Ended April 30, 2004
================================================================================
4. SUPPLEMENTAL PROXY INFORMATION AND 2004 ANNUAL MEETING OF SHAREHOLDERS
SUPPLEMENTAL INFORMATION
Paul H. Broyhill, President, Michael G. Landry, Vice President and Chief
Investment Officer, and M. Hunt Broyhill, Vice President, 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 Fund. Messrs.
Landry and Hunt Broyhill have had such responsibility since 2001. Messrs. Landry
and Hunt Broyhill have been engaged in asset management for various institutions
and high net worth individuals for more than five years.
9
BMC FUND, INC.
FINANCIAL HIGHLIGHTS
Six Months Ended April 30, 2004 (Unaudited), Year Ended October 31, 2003, Seven
Months Ended October 31, 2002, and Each of the Eight Years in the Period Ended
March 31, 2002
================================================================================
The following table presents financial information divided into three parts: per
share operating performance, total investment return and ratios and supplemental
data for the six month periods ended April 30, 2004 (Unaudited), the year ended
October 31, 2003, the seven month period ended October 31, 2002, and each of the
eight years in the period ended March 31, 2002. The first part, per share
operating performance, details the changes on a per share basis of the Company's
beginning net asset value to its ending net asset value. The second part, total
investment return, is based on the market price of the Company's shares of
stock. Part three, ratios and supplemental data, provides additional financial
information related to the Company's performance.
Six Months Year Seven Months
Ended Ended Ended
PER SHARE OPERATING April 30, October 31, October 31,
PERFORMANCE 2004 2003 2002 2002 2001 2000
(Unaudited)
Net asset value, beginning of period $ 29.17 $ 25.46 $ 28.95 $ 29.44 $ 31.84 $ 29.01
----------- ----------- ----------- ----------- ----------- -----------
Net investment income 0.41 0.95 0.59 1.13 1.31 2.11
Net gains (losses) on investments 1.31 3.76 (3.45) (0.30) (2.13) 2.11
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations 1.72 4.71 (2.86) 0.83 (0.82) 4.22
----------- ----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from net investment income 0.63 0.45 0.56 0.84 1.58 1.10
Distributions from capital gains -- 0.55 0.07 0.48 -- 0.29
----------- ----------- ----------- ----------- ----------- -----------
Total distributions 0.63 1.00 0.63 1.32 1.58 1.39
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 30.26 $ 29.17 $ 25.46 $ 28.95 $ 29.44 $ 31.84
=========== =========== =========== =========== =========== ===========
Per share market value, end of period(1) $ 26.00 $ 26.00 $ 26.00 $ 26.00 $ 26.00 $ 26.00
=========== =========== =========== =========== =========== ===========
TOTAL INVESTMENT RETURN(2) 13.19%* 18.12% (18.85)% 3.20% (3.15)% 16.23%
=========== =========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 149,260 $ 143,910 $ 125,596 $ 142,811 $ 145,221 $ 157,057
Ratio of expenses to average net assets(3) 0.75%* 0.73% 0.71%* 0.62% 0.49% 0.40%
Ratio of net investment income to
average net assets(3) 2.74%* 3.52% 3.78%* 3.91% 4.23% 6.99%
Portfolio turnover rate 24.55% 52.51% 31.95% 67.18% 33.65% 94.21%
PER SHARE OPERATING
PERFORMANCE 1999 1998 1997 1996 1995
Net asset value, beginning of period $ 30.55 $ 29.33 $ 29.40 $ 28.23 $ 28.02
----------- ----------- ----------- ----------- -----------
Net investment income 1.04 1.26 1.29 1.22 1.28
Net gains (losses) on investments (0.16) 1.95 0.54 1.69 0.46
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.88 3.21 1.83 2.91 1.74
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from net investment income 1.49 1.14 1.16 1.05 1.20
Distributions from capital gains 0.93 0.85 0.74 0.69 0.33
----------- ----------- ----------- ----------- -----------
Total distributions 2.42 1.99 1.90 1.74 1.53
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 29.01 $ 30.55 $ 29.33 $ 29.40 $ 28.23
=========== =========== =========== =========== ===========
Per share market value, end of period(1) $ 26.00 $ 26.00 N/A $ 26.00 $ 26.00
=========== =========== =========== =========== ===========
TOTAL INVESTMENT RETURN(2) 3.38% 12.33% 7.05% 11.17% 6.68%
=========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 143,092 $ 150,705 $ 144,702 $ 145,036 $ 139,248
Ratio of expenses to average net assets(3) 0.32% 0.27% 0.27% 0.29% 0.30%
Ratio of net investment income to
average net assets(3) 3.50% 4.18% 4.39% 4.21% 4.55%
Portfolio turnover rate 80.17% 26.98% 31.23% 21.75% 32.29%
(1) Unaudited - Based on stock trades, which are very limited, during that
year.
(2) Unaudited - Computed as follows: income from operations divided by market
value per share times number of shares outstanding.
(3) Average is computed on a quarterly basis.
* Annualized
10
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Unaudited)
April 30, 2004
================================================================================
Coupon Percent
Interest Maturity Maturity Market of Net
Debt Issuer Rate Date Value Value Assets
CORPORATE BONDS AND
GOVERNMENT AGENCIES:
OAKWOOD HOMES CORP(1) 7.875% 3/1/2004 $ 1,000,000 $ 465,000
HERTZ CORP 7.000% 7/1/2004 1,000,000 1,006,525
HILTON HOTELS CORP 7.000% 7/15/2004 430,000 432,688
TEXTRON INC 6.375% 7/15/2004 200,000 201,865
ALBERTSONS INC 6.550% 8/1/2004 150,000 151,507
CATERPILLAR FINL SVCS CORP 6.875% 8/1/2004 200,000 202,677
DUKE CAP CORP 7.250% 10/1/2004 400,000 408,727
DU PONT E I DE NEMOURS & C 6.750% 10/15/2004 200,000 204,752
ELECTRONIC DATA SYS CORP 6.850% 10/15/2004 200,000 203,745
TARGET CORP 7.500% 2/15/2005 200,000 208,487
UNITED DOMINION RLTY TR MT 7.730% 4/5/2005 1,000,000 1,047,464
RITE AID CORP 7.625% 4/15/2005 1,000,000 1,025,000
NATIONAL CITY CORP 7.200% 5/15/2005 200,000 210,784
RYDER SYS INC 6.500% 5/15/2005 725,000 755,746
CBS CORP 7.150% 5/20/2005 300,000 315,482
PHILLIPS PETE CO 8.500% 5/25/2005 50,000 53,376
COX COMMUNICATIONS INC NEW 6.875% 6/15/2005 300,000 314,919
ENRON CORP(1) 6.750% 7/1/2005 300,000 --
WORLDCOM INC GA(1) 6.400% 8/15/2005 200,000 49,500
SPRINT CAP CORP 7.125% 1/30/2006 80,000 85,819
FORD MOTOR CR CO 6.875% 2/1/2006 95,000 100,555
PAINE WEBBER GROUP INC 6.750% 2/1/2006 800,000 864,690
PHILIP MORRIS COS INC 6.375% 2/1/2006 1,000,000 1,048,700
PROGRESS ENERGY INC 6.750% 3/1/2006 100,000 106,835
FEDERAL RLTY INVT TR MTN 6.990% 3/10/2006 500,000 535,982
KEYCORP NEW 7.500% 6/15/2006 500,000 547,156
SEAGRAM LTD 8.350% 11/15/2006 590,000 634,143
NORFOLK SOUTHERN CORP 7.350% 5/15/2007 150,000 166,702
TELUS CORP 7.500% 6/1/2007 60,000 66,302
OWENS CORNING(1) 7.700% 5/1/2008 660,000 273,900
----------- -----------
TOTAL INVESTMENTS IN
CORPORATE BONDS AND GOVERNMENT AGENCIES $12,590,000 $11,689,028 7.83%
----------- ----------- ----
(1) In default
11
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Shares Market of Net
Company Name Held Cost Value Assets
MUTUAL FUNDS:
BOND MUTUAL FUNDS:
FEDERATED ADJ RATE SEC INS 21,194.72 $ 204,104 $ 203,045
ING PRIME RATE TR SH BEN I 134,600.00 913,390 1,107,758
PIMCO STRATEGIC GBL GV COM 60,000.00 739,421 627,600
TEMPLETON GLOBAL INCM COM 125,500.00 959,841 1,004,000
TIAA CREF HIGH YIELD FUND 52,966.10 500,000 489,934
VAN KAMPEN SR INCM TR COM 130,000.00 935,796 1,128,400
----------- -----------
TOTAL BOND MUTUAL FUNDS $ 4,252,552 $ 4,560,737 3.05%
----------- ----------- ----
12
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Shares Market of Net
Company Name Held Cost Value Assets
MUTUAL FUNDS:
STOCK MUTUAL FUNDS:
ABERDEEN AUSTRALIA EQT COM 98,100.00 $ 611,441 $ 802,458
AMERICAN CENTURY GLOBAL GOLD FUND 9,827.43 121,563 97,881
ARBITRAGE FUND 14,788.17 185,000 183,817
ARIEL GROWTH FD CALV ARIEL 3,632.90 145,448 159,557
BUILDERS INDEX FUNDS TR ASIA 50 4,000.00 244,960 262,840
BUILDERS INDEX FUNDS TR EMERGING MKTS 4,000.00 271,595 273,080
BRANDYWINE FUND INC 10,053.62 225,000 239,980
CITIGROUP INVTS LN FUND 5,000.00 70,000 76,250
CORNERCAP SMALL CAP VALUE 39,782.98 427,671 561,338
DIAMONDS TR UNIT SER 1 600.00 51,126 61,410
DODGE & COX STK FD COM 1,561.74 164,147 182,287
FPA FUNDS TR FPA CRESCENT 10,957.16 194,065 246,426
GERMANY FD INC COM 12,000.00 89,229 80,520
GLADSTONE CAPITAL CORP COM 6,000.00 123,299 122,940
GMO TR FOREIGN II 63,902.32 661,348 837,120
GMO TR INTL INT VL II 19,384.40 362,936 464,838
GMO TR REIT FD CL III 46,391.94 521,798 612,374
GMO TR SML CP VAL III 22,484.36 288,169 330,970
GMO TR VALUE III 33,419.15 254,197 304,783
JOHN HANCOCK PATRIOT SELECT 10,000.00 152,050 135,400
HARRIS ASSOC INVT TR OAKMA 2,715.45 100,302 103,486
ICON FUNDS INFO TECHNOLOGY FUND 19,501.63 180,000 152,113
INDIA FUND INC COMMON 3,000.00 57,440 72,300
ISHARES INC MSCI HONG KONG 10,000.00 101,260 98,100
ISHARES INC MSCI JAPAN 18,000.00 164,580 182,520
ISHARES TR DJ CON NON CYCLICAL 4,000.00 187,140 209,600
ISHARES TR DJ US HEALTHCARE 3,000.00 167,860 177,090
ISHARES TR DJ US UTILITIES 2,000.00 102,740 115,340
ISHARES TR MSCI EAFE INDEX 4,200.00 520,186 574,560
ISHARES TR MSCI EMERGING MARKETS 3,000.00 393,810 474,900
ISHARES TR RUSL 2000 VALUE 2,500.00 270,675 404,500
ISHARES TR RUSSELL 2000 1,000.00 88,420 111,110
ISHARES TR S&P MIDCAP 400 1,450.00 144,286 169,085
ISHARES TR S&P MIDCP GROW 2,000.00 216,050 241,360
ISHARES TR S&P SMLCP VALU 4,000.00 358,430 411,120
MALAYSIA FUND INC COMMON 10,000.00 61,039 58,100
MATTHEWS INTL FUNDS ASIA GROWTH 19,058.00 250,000 272,720
MERGER FD SH BEN INT 6,922.01 101,383 106,530
MERIDIAN FD INC VALUE FD 4,504.73 148,000 173,522
MEXICO FD INC COM 22,226.00 396,399 414,515
MORGAN STANLEY DEAN WITTER ASIA COM 36,000.00 342,626 390,600
NASDAQ 100 TR UNIT SER 1 37,700.00 1,242,750 1,310,829
NEW IRELAND FUND INC 15,000.00 159,440 225,000
13
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Shares Market of Net
Company Name Held Cost Value Assets
OIL SVC HOLDRS TR DEP RECPTS 3,500.00 $ 204,925 $ 243,285
PBHG FDS INC MID CAP VAL 11,461.14 172,000 200,111
PHARMACEUTICAL HLDR TR DEP 3,500.00 302,000 278,320
REGIONAL BK HOLDRS TR DEPO 1,400.00 163,553 178,850
ROWE T PRICE CAP APPRE SH 10,519.70 155,179 187,251
ROWE T PRICE INTL FUNDS NEW 14,666.67 110,000 124,813
ROYCE FD LOW PRICED 4,805.96 60,096 68,869
ROYCE FD TOTAL RETURN 24,913.68 239,092 269,815
ROYCE VALUE TR INC COM 18,474.00 295,888 312,026
SECTOR SPDR TR SBI INT-ENE 10,000.00 288,600 298,400
SECTOR SPDR TR SBI INT-TECH 5,000.00 78,650 96,950
SECTOR SPDR TR SBI INT-UTI 11,000.00 264,940 256,080
SELECTED AMERICAN SHS INC COM 5,108.99 150,000 172,735
SEMICONDUCTOR HLDRS TR DEP 9,000.00 242,400 317,700
SPAIN FD COM 25,200.00 214,302 252,000
SPDR TR UNIT SER 1 13,350.00 1,461,438 1,481,316
SWISS HELVETIA FD INC COM 24,246.00 274,783 310,106
TAIWAN FUND INC COM 10,000.00 82,878 120,800
TEMPLETON DRAGON FD COM 37,000.00 405,009 477,300
TWEEDY BROWNE FD INC GLOBA 7,824.63 153,541 168,542
VANGUARD HORIZON FD CAP OP 4,472.38 100,058 118,205
VANGUARD HORIZON FD STRATEGY 6,935.60 106,714 131,083
VANGUARD INDEX TR SMAL CP V 10,224.95 100,000 118,916
VANGUARD SPECIALIZED PRECI 10,511.79 104,950 138,756
VANGUARD SPECIALIZED REIT 10,131.48 131,600 145,691
VANGUARD WHITEHALL FDS SEL 9,844.33 142,314 155,146
VANGUARD WORLD FD INTL GR 6,007.50 253,811 315,454
WASATCH ADVISORS FDS CORE 6,206.11 210,777 233,784
WASATCH ADVISORS FDS MICRO 24,525.00 147,000 182,221
WEXFORD TR MUHLENKAMP FD 1,994.17 130,000 127,966
------------ ------------
TOTAL STOCK MUTUAL FUNDS 17,666,356 19,967,760 13.38%
------------ ------------ -----
TOTAL INVESTMENTS IN MUTUAL FUNDS $ 21,918,908 $ 24,528,497 16.43%
============ ------------ =====
14
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Market Percent of
Company Name Cost Value Net Assets
OTHER INVESTMENTS:
LIMITED PARTNERSHIPS:
BTOP50 CTA INDEX FUND, LP $ 6,000,000 $ 6,123,822
INSTITUTIONAL BENCHMARKS SERIES LLC:
-CONVERTIBLE HEDGE SERIES 2,420,000 2,858,739
-DISTRESSED SECURITIES SERIES 3,100,000 3,609,539
-EQUITY MARKET NEUTRAL SERIES 1,500,000 1,339,473
-EVENT DRIVEN MULTI-STRATEGY SERIES 2,880,000 3,174,309
-MERGER ARBITRAGE SERIES 2,100,000 2,236,207
JMG CAPITAL PARTNERS LP 1,000,000 2,384,963
MARINER PARTNERS, LP 750,000 1,271,793
STARK INVESTMENTS LP 1,000,000 2,129,266
WALNUT INVESTMENT PARTNERS LP 191,525 154,670
------------ ------------
20,941,525 25,282,781 16.94%
------------ ------------ ------
OTHER INVESTMENTS:
"SERVES" CERTIFICATES-BANK OF AMERICA 500,000 445,000 0.30%
------------ ------------ ------
VENTURE CAPITAL:
PIEDMONT VENTURE PARTNERS 97,333 9,733
PIEDMONT VENTURE PARTNERS II LP 239,864 23,986
------------ ------------
337,197 33,719 0.02%
------------ ------------ ------
TOTAL OTHER INVESTMENTS $ 21,778,722 $ 25,761,500 17.26%
============ ------------ ------
15
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Sectors and Shares Market of Net
Industries Held Company Name Cost Value Assets
COMMON STOCKS:
CONSUMER DISCRETIONARY
Apparel & Accessories 2,500 ABERCROMBIE & FITCH CO. $ 81,760 $ 78,625
2,700 CHICOS FASHIONS INC COM 116,294 109,971
------------ ------------
198,054 188,596
------------ ------------
Auto Parts & Equipment 3,000 AUTOZONE INC COM 266,549 258,480
56,300 DELPHI AUTO SYS CORP COM 494,537 574,260
------------ ------------
761,086 832,740
------------ ------------
Broadcasting & Cable TV 8,000 LIBERTY MEDIA CORP NEW COM 95,290 87,520
5,000 XM SATELLITE RADIO HLD 131,240 119,800
------------ ------------
226,530 207,320
------------ ------------
Casinos and Gaming 1,000 GTECH HOLDINGS CORP COM 49,970 60,920
2,000 INTERNATIONAL GAME TECH COM 94,066 75,480
800 MULTIMEDIA GAMES INC COM 19,025 17,800
3,000 SHUFFLE MASTER INC COM 73,520 98,250
------------ ------------
236,581 252,450
------------ ------------
Department Stores 8,100 SEARS ROEBUCK & CO COM 287,314 324,405
------------ ------------
Homebuilding 8,000 HOVNANIAN ENTERPRISES CL A 344,829 287,760
2,200 M D C HOLDINGS INC COM 140,081 135,938
5,000 PULTE HOMES INC COM 216,273 245,850
------------ ------------
701,183 669,548
------------ ------------
Home Improvement Retail 2,500 LOWES COS INC COM 149,380 130,150
------------ ------------
Hotels, Resorts &
Cruise Lines 2,500 WALT DISNEY CO COM 62,100 57,450
------------ ------------
Household Appliances 2,000 RENT A CENTER INC NEW COM 65,332 58,360
------------ ------------
Housewares & Specialties 49,800 WATERFORD WEDGEWOOD 178,715 141,930
------------ ------------
Leisure Products 150,600 HEAD NV NY REGISTRY SH 378,412 466,860
------------ ------------
16
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Sectors and Shares Market of Net
Industries Held Company Name Cost Value Assets
Restaurants 3,000 CBRL GROUP INC COM $ 109,484 $ 112,650
25,300 MCDONALDS CORP COM 574,905 688,919
------------ ------------
684,389 801,569
------------ ------------
Specialty Stores 3,000 STAPLES INC COM 67,110 77,190
------------ ------------
TOTAL CONSUMER DISCRETIONARY 3,996,186 4,208,568 2.82%
------------ ------------ -------
CONSUMER STAPLES
Agricultural Products 30,000 CONAGRA FOODS INC COM 678,370 866,700
------------ ------------
Drug: Retail 23,000 CVS CORP COM 643,820 888,490
------------ ------------
Food: Retail 27,400 ALBERTSONS INC COM 696,791 640,064
25,968 KONINKLIJKE AHOLD N V SPON 472,808 199,954
------------ ------------
1,169,599 840,018
------------ ------------
Food Distributors 3,000 GENERAL MILLS INC COM 135,178 146,250
12,300 NESTLE S A SPONSORED ADR 201,834 777,877
------------ ------------
337,012 924,127
------------ ------------
Household Products 2,500 FORTUNE BRANDS INC COM 185,340 190,000
3,000 LANCASTER COLONY CORP COM 122,650 123,900
------------ ------------
307,990 313,900
------------ ------------
Packaged Foods 5,000 CADBURY SCHWEPPES PLC ADR 120,200 163,250
33,421 DEL MONTE FOODS CO COM 293,012 369,636
11,900 HEINZ H J CO COM 399,291 454,461
------------ ------------
812,503 987,347
------------ ------------
Personal Products 2,000 KIMBERLY CLARK CORP COM 105,552 130,900
------------ ------------
Soft Drinks 4,000 PEPSICO INC COM 219,974 217,960
------------ ------------
TOTAL CONSUMER STAPLES 4,274,820 5,169,442 3.46%
------------ ------------ -------
17
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Sectors and Shares Market of Net
Industries Held Company Name Cost Value Assets
ENERGY
Integrated Oil & Gas 7,300 BP PLC SPONSORED ADR $ 352,450 $ 386,170
4,400 CHEVRONTEXACO CORP COM 319,718 402,600
12,646 CONOCOPHILLIPS COM 709,984 901,660
19,104 EXXON MOBIL CORP COM 639,732 812,875
2,700 IMPERIAL OIL LTD COM NEW 95,463 118,503
14,200 ROYAL DUTCH PETE CO NY REG 744,041 690,972
16,200 SHELL TRANS&TRAD PLC NEW Y 663,410 681,534
6,000 TOTAL FINA S A SPONSORED A 444,924 552,720
------------ ------------
3,969,722 4,547,034
------------ ------------
Oil & Gas Exploration 2,500 AMERADA HESS CORP COM 160,152 165,425
& Production 800 ANADARKO PETE CORP COM 35,107 42,864
3,000 APACHE CORP COM 101,415 125,610
2,500 DEVON ENERGY CORP NEW COM 124,322 153,000
4,000 ENCANA CORP COM 145,268 156,880
500 ENERGEN CORP COM 16,300 20,675
8,000 ENERPLUS RES FD UNIT TR G 118,301 202,000
2,500 MARATHON OIL CORP COM 81,675 82,275
1,500 SUNCOR ENERGY INC COM 41,805 35,850
------------ ------------
824,345 984,579
------------ ------------
Oil & Gas Drilling 1,000 POGO PRODUCING CO COM 47,810 49,320
------------ ------------
Oil & Gas Equipment 14,000 GULFTERRA ENERY PRTNR COM 470,956 531,440
& Services 12,000 PROVIDENT ENERGY TR UNI 98,976 101,040
3,000 YPF SOCIEDAD ANONIMA ADR 99,919 118,500
------------ ------------
669,851 750,980
------------ ------------
Oil & Gas Refining
& Marketing 19,600 ASHLAND INC COM 572,739 938,840
------------ ------------
Pipeline 8,200 BUCKEYE PARTNERS L P UNIT 265,823 324,310
4,450 CHESAPEAKE UTILS CORP COM 72,150 107,913
5,000 KANEB PIPE LINE PARTNR SR 206,491 222,500
13,000 KINDER MORGAN ENERGY UT LT 453,576 533,390
4,000 NORTHERN BORDER PARTNER UNI 174,367 155,480
28,000 ONEOK INC NEW COM 513,882 586,600
19,500 TEPPCO PARTNERS LP UT LTD 582,467 733,200
------------ ------------
2,268,756 2,663,393
------------ ------------
TOTAL ENERGY 8,353,223 9,934,146 6.66%
------------ ------------ -------
18
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Sectors and Shares Market of Net
Industries Held Company Name Cost Value Assets
FINANCIALS
Banks 20,136 ABN AMRO HOLDINGS ADR $ 306,653 $ 428,091
6,000 BANCO SANTANDER CENTRAL HI 51,020 63,720
7,665 BANK OF AMERICA CORP COM 610,669 616,506
7,100 BB&T CORP COM 233,022 244,879
9,550 COMERICA INC COM 474,885 493,067
3,750 FIRST BANCORP P R COM 84,551 138,225
3,000 GOLDEN WEST FINL DEL COM 282,759 315,330
3,000 INDYMAC BANCORP INC COM 76,216 96,480
17,000 UNION PLANTERS CORP COM 521,990 472,600
13,700 US BANCORP DEL COM NEW 229,609 351,268
25,300 WASHINGTON MUT INC COM 900,964 996,367
3,000 WELLS FARGO & CO DEL COM 141,089 169,080
------------ ------------
3,913,427 4,385,613
------------ ------------
Consumer Finance 4,000 CAPITAL ONE FINL CORP COM 278,980 262,120
2,500 NEW CENTURY FINANCIAL COM 123,625 106,050
4,000 THORNBURG MORTGAGE INC COM 97,370 103,520
------------ ------------
499,975 471,690
------------ ------------
Diversified Financial 22,300 ALLIANCE CAP MGMT HLDGS 750,579 743,705
Services 23,400 ALLIED CAP CORP COM 620,255 554,348
2,500 CHICAGO MERCANTILE HLDG 173,270 293,250
10,133 CITIGROUP INC COM 389,371 487,096
7,500 COUNTRYWIDE CREDIT IND DEL COM 451,875 442,500
6,000 DORAL FINANCIAL CORP COM 171,350 196,740
6,000 FIRST AMERN CORP CALIF COM 148,868 162,720
3,000 FREMONT GENERAL CORP COM 81,800 64,200
10,950 FRIEDMAN BILLINGS RAMSEY 99,000 202,575
3,055 HSBC HLDGS PLC SPON ADR NE 170,985 220,266
21,192 ING GROEP N V SPONSORED AD 534,530 449,694
2,000 MOODYS CORP COM 121,615 129,020
3,500 NATIONAL COMMERCE FINANCIAL 81,260 93,065
1,000 NOVASTAR FINANCIAL INC COM 38,912 32,460
137 PIPER JAFFRAY COS COM 3,324 6,634
------------ ------------
3,836,994 4,078,273
------------ ------------
Insurance 37,803 AEGON N V ORD AMER REG 621,548 489,171
29,300 AXA SPONSORED ADR 516,393 603,287
------------ ------------
1,137,941 1,092,458
------------ ------------
19
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Sectors and Shares Market of Net
Industries Held Company Name Cost Value Assets
Multi Line Insurance 1,800 AMERICAN INTL GROUP COM $ 140,148 $ 128,970
11,000 CIGNA CORP COM 626,182 709,610
1,500 EVEREST RE GROUP LTD COM 125,921 125,295
------------ ------------
892,251 963,875
------------ ------------
REITs 1,000 AVALONBAY CMNTYS INC COM 50,490 49,630
4,000 BOSTON PROPERTIES INC COM 147,670 188,000
6,700 BRE PROPERTIES INC CL A 157,948 212,390
10,000 DUKE WEEKS REALTY CORP COM 237,400 291,600
5,500 EQUITY RESIDENT PPTYS SH B 145,795 151,030
10,000 GETTY REALTY CORP NEW COM 185,058 215,100
6,000 HEALTH CARE REIT INC COM 157,400 191,640
4,000 HEALTHCARE REALTY TRUST COM 140,030 143,400
6,600 HOSPITALITY PPTYS TR COM S 158,067 257,928
28,000 HRPT PROPERTIES TRUST 240,971 267,400
7,300 KILROY RLTY CORP COM 152,564 228,855
5,100 KIMCO REALTY CORP COM 124,448 217,974
5,000 MILLS CORP COM 141,180 203,000
4,000 NEWCASTLE INVT CORP 92,708 106,880
7,000 PROLOGIS TR SH BEN INT 194,970 205,940
6,000 PUBLIC STORAGE INC COM 208,890 250,740
10,000 SENIOR HOUSING PPTYS TR SH 151,575 149,500
4,800 SIMON PPTY GROUP NEW 130,092 231,408
6,000 SOVRAN SELF STORAGE COM 137,595 202,620
4,000 VORNADO REALTY TR SH BEN INT 144,772 201,800
5,000 W P CAREY & CO LLC COM 114,600 161,500
4,500 WEINGARTEN RLTY INVS SH BE 135,682 130,095
------------ ------------
3,349,905 4,258,430
------------ ------------
TOTAL FINANCIALS 13,630,493 15,250,339 10.22%
------------ ------------ -------
HEALTH CARE
Biotechnology 2,000 AMGEN INC COM 113,841 112,620
------------ ------------
Health Care Distributors 7,500 CARDINAL HEALTH INC COM 478,930 549,375
& Services 2,000 EXPRESS SCRIPTS INC COM 159,570 154,680
3,000 FIRST HEALTH GROUP CP COM 87,990 50,100
6,400 LABORATORY AMER HLDGS COM 238,330 254,336
6,000 PEDIATRIX MEDICAL GROUP COM 323,804 429,000
2,000 QUEST DIAGNOSTICS INC COM 162,016 168,400
5,000 RENAL CARE GROUP INC COM 175,630 247,400
2,500 UNITED HEALTH GROUP INC COM 162,090 153,700
------------ ------------
1,788,360 2,006,991
------------ ------------
20
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Sectors and Shares Market of Net
Industries Held Company Name Cost Value Assets
Health Care Equipment 2,000 BIOSITE INC COM $ 61,285 $ 67,800
7,000 ICU MEDICAL INC COM 201,347 233,660
3,000 MEDTRONIC INC COM 136,707 151,380
3,000 POLYMEDICA CORP COM 79,351 83,520
3,000 POSSIS MEDICAL INC COM 85,218 76,290
------------ ------------
563,908 612,650
------------ ------------
Health Care Supplies 2,000 C R BARD INC COM 137,398 212,540
2,000 COOPER COMPANIES INC NEW 87,830 108,000
------------ ------------
225,228 320,540
------------ ------------
Managed Health Care 9,000 COVENTRY HEALTH CARE COM 383,021 373,785
------------ ------------
Pharmaceuticals 2,000 AMERICAN PHARMACEU PTN COM 72,594 75,720
3,000 ASTRAZENECA PLC SPONS ADR 139,664 143,550
5,000 BRADLEY PHARMACEUTICAL COM 147,240 131,100
26,200 BRISTOL MYERS SQUIBB COM 713,063 657,620
8,000 DR REDDYS LABS LTD ADR 210,908 156,800
1,000 EON LABS INC COM 57,420 65,760
5,500 FOREST LABS INC COM 402,403 354,640
2,800 GLAXOSMITHKLINE PLC SPON ADR 149,654 117,600
10,300 MERCK & CO INC COM 624,315 484,100
1,500 MYLAN LABS INC COM 34,700 34,365
11,600 PFIZER INC COM 291,564 414,816
1 PHARMACIA CORP COM -- 34
36,700 SCHERING PLOUGH CORP COM 855,987 613,991
4,000 TARO PHARMACEUTICAL INDS 261,947 172,400
1,762 TEVA PHARMACEUTICAL INDS ADR 108,894 108,451
------------ ------------
4,070,353 3,530,947
------------ ------------
TOTAL HEALTH CARE 7,144,711 6,957,533 4.66%
------------ ------------ -------
INDUSTRIALS
Aerospace & Defense 2,000 AAR CORP COM 9,040 20,300
8,200 BOEING CO COM 324,836 350,058
5,000 CURTISS WRIGHT CORP COM 149,310 235,500
2,000 GENERAL MTRS CORP CLASS H 157,620 187,240
7,000 INVISION TECHNOLOGIES COM 166,906 347,270
------------ ------------
807,712 1,140,368
------------ ------------
Air Freight & Logistics 3,000 LANDSTAR SYSTEMS INC COM 88,971 135,270
------------ ------------
Building Products 3,000 CEMEX S A SPON ADR 5 ORD 84,596 84,000
------------ ------------
21
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Sectors and Shares Market of Net
Industries Held Company Name Cost Value Assets
Construction & Farm
Machinery 1,500 HALLIBURTON CO COM $ 33,836 $ 44,700
------------ ------------
Data Processing Services 2,000 DIGITAL RIVER INC COM 50,161 44,500
------------ ------------
Diversified Commercial
Services 30,000 SERVICEMASTER CO COM 353,307 363,900
------------ ------------
Electrical Components 11,800 EMERSON ELEC CO COM 614,866 710,596
& Equipment 23,000 GENERAL ELEC CO COM 673,252 688,850
------------ ------------
1,288,118 1,399,446
------------ ------------
Employment &
Educational Services 5,000 ITT EDUCATIONAL SVCS COM 224,236 201,650
------------ ------------
Industrial Conglomerates 1,400 3M COMPANY 80,148 121,072
14,700 FLUOR CORP NEW COM 446,449 560,952
32,000 TYCO INTL LTD NEW COM 520,076 878,400
50,000 VISTEON CORP COM 330,438 543,000
------------ ------------
1,377,111 2,103,424
------------ ------------
Industrial Machinery 30,000 FEDERAL SIGNAL CORP COM 463,741 546,000
1,500 FRANKLIN ELEC INC COM 82,710 90,390
18,800 STANDEX INTL CORP COM 410,022 505,720
------------ ------------
956,473 1,142,110
------------ ------------
TOTAL INDUSTRIALS 5,264,521 6,659,368 4.46%
------------ ------------ -------
INFORMATION TECHNOLOGY
Application Software 3,500 ELECTRONIC ARTS INC COM 183,176 176,370
4,500 MICROSOFT CORP COM 116,915 117,460
------------ ------------
300,091 293,830
------------ ------------
Computer Storage 6,500 DRS TECHNOLOGIES INC COM 165,182 183,625
& Peripherals 3,000 E M C CORP MASS COM 46,110 33,480
------------ ------------
211,292 217,105
------------ ------------
Computer Hardware 5,000 INTERNATIONAL BUS MACH COM 347,752 440,850
109,800 SUN MICROSYSTEMS INC COM 516,845 428,220
10,000 WESTERN DIGITAL CORP COM 119,170 80,800
------------ ------------
983,767 949,870
------------ ------------
22
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Sectors and Shares Market of Net
Industries Held Company Name Cost Value Assets
Electronic Equipment 10,000 CREE INC COM $ 236,394 $ 183,700
& Instruments 500 HERLEY INDUSTRIES INC DEL COM 10,510 10,390
2,000 L-3 COMMUNICATIONS HLDGS COM 92,420 123,480
------------ ------------
339,324 317,570
------------ ------------
Internet Software
& Services 1,140 VELOCITYHSI INC COM -- --
------------ ------------
IT Consulting & Services 2,000 AFFILIATED COMPUTER CL A 101,113 96,800
2,000 CACI INTL INC CL A 91,703 91,000
3,500 COMPUTER SCIENCES CORP COM 156,615 143,185
11,000 SUNGARD DATA SYS INC COM 297,919 286,770
7,800 SYMANTEC CORP COM 317,945 351,390
------------ ------------
965,295 969,145
------------ ------------
Networking Equipment 7,500 CISCO SYS INC COM 216,175 156,825
------------ ------------
Semiconductors 2,500 INTEL CORP COM 72,425 64,325
20,120 TAIWAN SEMICONDUCTOR SPONS 173,670 191,744
------------ ------------
246,095 256,069
------------ ------------
Telecommunications 200 ALLTEL CORP COM 9,182 10,068
Equipment 2,000 BCE INC COM 44,903 39,880
5,000 INTERDIGITAL COMMUNICATN COM 106,163 86,900
------------ ------------
160,248 136,848
------------ ------------
TOTAL INFORMATION TECHNOLOGY 3,422,287 3,297,262 2.21%
------------ ------------ -------
MATERIALS
Aluminum 12,000 ALCOA INC 433,453 369,000
------------ ------------
Diversified Chemicals 6,000 AKZO NOBEL NV ADR 232,541 218,400
------------ ------------
Diversified Metals 5,000 ALLIANCE RES PARTNR LP UT 121,950 193,350
& Mining 6,000 BHP BILLITON LTD SPONSORED 113,921 98,460
------------ ------------
235,871 291,810
------------ ------------
Gold 9,000 NEWMONT MINING CORP COM 268,250 336,600
------------ ------------
TOTAL MATERIALS 1,170,115 1,215,810 0.81%
------------ ------------ -------
23
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Sectors and Shares Market of Net
Industries Held Company Name Cost Value Assets
TELECOMMUNICATION SERVICES
Integrated 33,800 BELLSOUTH CORP COM $ 986,213 $ 872,378
Telecommunication 2,935 MCI INC COM 198,219 41,618
Services 11,000 NIPPON TELEG & TEL 265,382 285,670
20,000 SBC COMMUNICATIONS INC COM 502,680 498,000
15,000 TELEFONOS DE MEXICO SA ADR 534,777 512,100
6,000 VERIZON COMMUNICATIONS COM 242,353 226,440
------------ ------------
2,729,624 2,436,206
------------ ------------
Wireless Telecommunication
Services 5,000 NEXTEL COMMUNICATIONS CL A 116,393 119,250
------------ ------------
TOTAL TELECOMMUNICATION SERVICES 2,846,017 2,555,456 1.71%
------------ ------------ -------
UTILITIES
Electric Utilities 14,500 CONSTELLATION ENERGY COM 395,579 557,960
7,000 DOMINION RES INC VA COM 385,662 446,670
3,000 DUKE ENERGY CORP COM 56,402 63,180
20,000 DUKE ENERGY CORP CORP UNIT 397,650 274,000
6,700 EXELON CORP COM 334,772 448,498
4,000 FIRSTENERGY CORP COM 119,307 156,400
5,500 FPL GROUP INC COM 316,586 349,910
5,250 MDU RES GROUP INC COM 88,685 117,600
10,000 NATIONAL FUEL GAS N J COM 224,736 244,900
2,700 SOUTH JERSEY INDS INC COM 86,549 111,348
44,000 TECO ENERGY INC COM 663,560 560,120
------------ ------------
3,069,488 3,330,586
------------ ------------
Gas Utilities 10,000 ATMOS ENERGY CORP COM 219,680 246,400
7,500 QUESTAR CORP COM 234,832 266,025
------------ ------------
454,512 512,425
------------ ------------
Multi Utilities 13,515 AQUA AMERICA INC COM 261,089 276,382
& Unregulated Power 3,000 NSTAR COM 119,910 145,200
6,000 PUBLIC SVC ENTERPRISE COM 245,584 257,400
5,000 SEMPRA ENERGY COM 133,819 158,750
4,000 SOUTHERN CO COM 118,680 115,040
5,000 UGI CORP NEW COM 147,196 157,500
------------ ------------
1,026,278 1,110,272
------------ ------------
Water Utilities 7,788 SOUTHWEST WTR CO COM 74,038 102,179
------------ ------------
TOTAL UTILITIES 4,624,316 5,055,462 3.39%
------------ ------------ -------
TOTAL INVESTMENTS IN COMMON STOCKS $ 54,726,689 $ 60,303,386 40.40%
============ ============ -------
24
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Percent
Shares Market of Net
Company Name Held Cost Value Assets
PREFERRED STOCKS:
BELLSOUTH CAP FDG CORP QUI 15,000 $ 383,660 $ 379,350
CADBURY SCHWEPPES DEL PFD 9,700 246,894 248,029
GRAND MET DEL L P PFD GTD 9,000 244,800 234,180
LEARNINGSTATION.COM 1,224,661 500,000 300,000
NATIONAL WESTMINSTER SPON 9,600 249,792 247,680
----------- ----------
TOTAL INVESTMENTS IN PREFERRED STOCKS $ 1,625,146 $ 1,409,239 0.94%
----------- ----------- -----
25
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (Continued) (Unaudited)
April 30, 2004
================================================================================
Market Percent of
Industries Company Name Cost Value Net Assets
Short-term Investments Evergreen Money Market Fund $ 8,806,626 $ 8,806,626 5.90%
============ ------------- -----
TOTAL INVESTMENTS - MARKET VALUE $ 132,498,276 88.77%
============= ======
Aggregate gross unrealized appreciation of security values $ 16,186,138
Aggregate gross unrealized depreciation of security values (5,006,733)
-------------
Net appreciation of security values 11,179,405
Tax cost of securities 121,318,871
-------------
Total market value of securities $ 132,498,276
=============
26
BMC FUND, INC. SCHEDULE II
INVESTMENTS - OTHER THAN SECURITIES (Unaudited)
April 30, 2004
================================================================================
Market
Value at
End of
Description Period
INVESTMENT LAND:
Residential acreage including subdivided lots in Caldwell, Rutherford
and Wilkes Counties, NC $ 350,000 (a)
---------
TOTAL $ 350,000
=========
Aggregate appreciation of investment land and buildings $ 204,997
Tax cost of investment land and buildings 145,003
---------
Market value of investment land and buildings $ 350,000
=========
(a) Non-income producing property
27
BMC FUND, INC. SCHEDULE III
INVESTMENTS IN AFFILIATES (Unaudited)
April 30, 2004
================================================================================
Number of Amount of Equity
Shares Held At In Net Profit Amount of Value at
April 30, And Loss for the Dividends April 30,
Issuer 2004 Period (1) 2004
Broyhill Industries, Inc. - wholly owned
subsidiary 1,000 $ 1,362 $ -- $ 588,128
P. B. Realty, Inc. - wholly owned
subsidiary 1,000 731,318 -- 24,198,812
--------- ---- ------------
TOTAL $ 732,680 $ -- $ 24,786,940
========= ==== ============
(1) All of the dividends received by BMC Fund, Inc. from its wholly owned
subsidiaries have been credited to the investment account since BMC Fund,
Inc. is accounting for its investment in the subsidiary companies on the
equity method.
28
Item. 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included as 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.
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
Not applicable.
Item 9. Submissions of Matters to a Vote of Security Holders.
Not applicable.
Item 10. 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-2(c) 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 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 Registrant's last fiscal half-year that have materially
affected, or are reasonable likely to materially affect, the Registrant's
internal control over financial reporting.
Item 11. Exhibits.
(a)(1) Not applicable.
(a)(2) A certification of each of the principal executive officer and principal
financial officer of the Registrant as required by Rule 30a-2 under the
Investment Company Act of 1940, as amended, are attached as exhibits hereto.
(a)(3) Not applicable.
(b) A certification of each of the principal executive officer and principal
financial officer of the Registrant as required by Rule 30a-2(b) under the
Investment Company Act of 1940, as amended, and Section 906 of the
Sarbanes-Oxley Act of 2002, are attached as exhibits hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registratnt has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
BMC Fund, Inc.
By (Signature and Title) /s/ D. E. Hendricks
D. E. Hendricks
Chief Financial Officer
Date: June 22, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this rpeort has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Paul H. Broyhill
Paul H. Broyhill
President and Chief Executive Officer
Date: June 22, 2004
By (Signature and Title) /s/ D. E. Hendricks
D. E. Hendricks
Chief Financial Officer
Date: June 22, 2004