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BMC Fund, Inc.
Financial Statements and
Additional Information for the
Six Months Ended September 30, 1999
<PAGE>
BMC FUND, INC.
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Page
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 6-8
Financial Highlights 9
Schedules:
I Investments in Securities of Unaffiliated Issuers 10-26
II Investments - Other than Securities 27
III Investments in Affiliates 28
<PAGE>
BMC FUND, INC.
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
DIRECTORS
E. D. Beach Lenoir, North Carolina
James T. Broyhill Winston-Salem, North Carolina
Paul H. Broyhill Lenoir, North Carolina
William E. Cooper Dallas, Texas
Lawrence Z. Crockett Vero Beach, Florida
Willard A. Gortner Naples, Florida
Allene B. Heilman Clearwater, Florida
Harry Heltzer Lenoir, North Carolina
Gene A. Hoots Charlotte, North Carolina
Michael G. Landry Fort Lauderdale, Florida
L. Glenn Orr, Jr. Winston-Salem, North Carolina
Dolph W. von Arx Naples, Florida
OFFICERS
Paul H. Broyhill Chairman
E. D. Beach President, Secretary and Treasurer
Carol Frye Assistant Secretary and Assistant
Treasurer
DIRECTORS EMERITUS
Clarence E. Beach Lenoir, North Carolina
Clarence A. Holden Lenoir, North Carolina
-1-
<PAGE>
CONFIDENTIAL: For the use of shareholders and the Securities and Exchange
Commission only.
TO OUR SHAREHOLDERS:
We are happy to present to you our semi-annual report, 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 September 30, 1999, the Fund paid the following
dividends per share:
June 10, 1999 to shareholders of record May 25, 1999 $ .33
September 10, 1999 to shareholders of record August 25, 1999 .33
-----
Total $ .66
=====
Prior to April 1, 1999 at least 50% of the market value of the Fund consisted of
tax exempt municipal bonds. At a board of directors meeting held in July 1998,
the board approved a plan to change the Fund's investment strategy. The amount
invested in municipal bonds was to remain at a level of at least 50% of the
total value of the Fund until April 1, 1999 and at that time or as soon as
practical thereafter all municipal bonds would be redeemed or sold. The tax
exempt securities were redeemed with no loss as follows:
April 1999 $69,340,000
May 1999 4,220,000
-----------
Total $73,560,000
===========
The proceeds from the tax exempt securities were added to the then existing
marketable securities. Schedule I is a listing of all the Fund's diversified
securities at September 30, 1999, with a total market value of $122,105,211.
It is our intent to render reports to shareholders each six months.
Paul H. Broyhill, Chairman E. D. Beach, President
-2-
<PAGE>
BMC FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS AT MARKET VALUE:
Investment securities (cost - $108,713,791) $122,105,211
Investment in affiliates - wholly owned subsidiaries (equity value - $13,130,861) 15,705,422
Investment real estate (cost - $147,045) 150,000
Cash 6,853,804
Receivables, principally accrued interest 561,999
Other assets 17,563
------------
Total assets 145,393,999
------------
LIABILITIES:
Due to brokers 115,793
Accounts payable and accrued expenses 49,738
------------
Total liabilities 165,531
------------
NET ASSETS AT SEPTEMBER 30, 1999 - EQUIVALENT TO $29.44 PER
SHARE ON 4,933,281 SHARES OF $5.00 PAR VALUE COMMON STOCK
OUTSTANDING - Authorized capital 70,000,000 shares $145,228,468
============
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 5,252,684
Realized gain on investments 1,206,359
Undistributed nontaxable gain 5,194,714
Unrealized appreciation of investments 15,968,936
------------
NET ASSETS, APPLICABLE TO COMMON STOCK OUTSTANDING $145,228,468
============
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE>
BMC FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Exempt interest $ 10,720
Interest - corporate bonds 839,358
Other interest and dividends 1,696,919
Earnings of wholly owned subsidiaries 5,344,789
-----------
Total income 7,891,786
-----------
Expenses:
Legal and professional fees 40,117
Directors' fees (Note 2) 16,250
Officers' remuneration (Note 2) 34,400
Investment expenses 76,515
Salaries and commissions 27,170
Property and liability insurance 9,644
Depreciation expense 1,206
Taxes and licenses 23,759
Rent 7,050
Office supplies and expense 7,235
Travel and entertainment 19,136
Miscellaneous 1,461
-----------
Total expenses 263,943
-----------
Investment income, net 7,627,843
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain from investment securities sold 1,206,359
Change in unrealized appreciation of investments for the period (3,441,916)
-----------
Net loss on investments (2,235,557)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,392,286
===========
See accompanying notes to financial statements.
-4-
<PAGE>
BMC FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income $ 7,627,843 $ 2,529,564
Net realized gain on investments 1,206,359 4,047,473
Change in unrealized appreciation (3,441,916) (8,902,988)
------------- -------------
Net increase (decrease) in net assets resulting from
operations 5,392,286 (2,325,951)
Distributions to shareholders from investment income - net 3,255,965 5,179,945
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,136,321 (7,505,896)
NET ASSETS - Beginning of period 143,092,147 150,705,360
------------- -------------
NET ASSETS AT END OF PERIOD (INCLUDING
UNDISTRIBUTED NET INVESTMENT INCOME
(1999 - $5,252,684; 1998 - $486,536) $ 145,228,468 $ 143,199,464
============= =============
</TABLE>
See accompanying notes to financial statements.
-5-
<PAGE>
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
BMC Fund, Inc. (the "Fund") is a closed-end, non-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 Fund in the preparation
of its financial statements. The policies are in conformity with generally
accepted accounting principles for investment companies.
A. Investment Valuations - The corporate investments and other
investment securities are stated at market. The cost of the bonds
has been adjusted for amortization of premium and accretion of
discount over the term of the security. Interest income is adjusted
to reflect such amortization and accretion. The market value of the
investment in its wholly owned subsidiaries is based on the
appraised value of the underlying assets. The investments in real
estate are accounted for at appraised values updated by management.
B. Income Taxes - No federal tax provision is required as it is the
Company's policy to comply with the provision 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 Fund has income recognizes the tax exempt status of a regulated
investment company.
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.
D. Dividend Policy - It is the Fund'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. Temporary 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 (repurchase agreements at September 30, 1999) to be temporary
cash investments. Short-term investments are considered to be money
market investments managed by third party investors.
2. ADVISORY BOARD AND REMUNERATION OF DIRECTORS
The Fund does not have an advisory board. During the current six months,
the Chairman was paid $9,400 and the President was paid $25,000. Directors
other than those who are officers of the Corporation or who are related by
blood or marriage to the Broyhill family are paid $3,000 per year, plus
$1,000 per meeting attended, for service on the Board. Each such outside
director is paid an additional $500 for each day of attending a committee
meeting held other than on the date of a Board meeting. In addition, all
directors are reimbursed for their reasonable expenses incurred in
attending meetings.
-6-
<PAGE>
3. SUPPLEMENTAL PROXY INFORMATION - 1999 ANNUAL MEETING OF SHAREHOLDERS
The Annual Meeting of shareholders of BMC Fund, Inc. was held on July 31,
1999 at Linville Ridge Country Club, Linville, North Carolina. The meeting
was held for the following purposes:
1. To elect the following 12 directors to serve as follows:
Director Term Expiring
E. D. Beach 1 year 2000
James T. Broyhill 1 year 2000
Paul H. Broyhill 1 year 2000
William E. Cooper 1 year 2000
Lawrence Z. Crockett 1 year 2000
Willard A. Gortner 1 year 2000
Allene B. Heilman 1 year 2000
Harry Heltzer 1 year 2000
Gene A. Hoots 1 year 2000
Michael G. Landry 1 year 2000
L. Glenn Orr, Jr. 1 year 2000
Dolph W. von Arx 1 year 2000
2. To approve an Investment Advisory Agreement between the Corporation
and The Northern Trust Company, N.A. dated as of August 1, 1999.
3. To approve an Investment Advisory Agreement between the Corporation
and Wellington Management Company, LLP dated as of August 1, 1999.
4. To approve an amendment to the Corporation's fundamental investment
policies to permit the issuance of certain senior securities
representing indebtedness.
5. To ratify the selection of Deloitte & Touche LLP as the Company's
auditor for the fiscal year beginning April 1, 1999.
6. 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:
<TABLE>
<CAPTION>
Votes Votes Votes
Director For Against Withheld Abstentions
<C> <S> <C> <C> <C> <C>
1. E. D. Beach 4,851,622 -- 81,659 --
James T. Broyhill 4,851,622 -- 81,659 --
Paul H. Broyhill 4,851,622 -- 81,659 --
William E. Cooper 4,851,622 -- 81,659 --
Lawrence Z. Crockett 4,851,622 -- 81,659 --
Willard A. Gortner 4,851,622 -- 81,659 --
Allene B. Heilman 4,851,622 -- 81,659 --
Harry Heltzer 4,851,622 -- 81,659 --
Gene A. Hoots 4,851,622 -- 81,659 --
Michael G. Landry 4,851,622 -- 81,659 --
L. Glenn Orr, Jr. 4,851,622 -- 81,659 --
Dolph W. von Arx 4,851,622 -- 81,659 --
</TABLE>
-7-
<PAGE>
<TABLE>
<CAPTION>
Votes Votes Votes
Director For Against Withheld Abstentions
<C> <S> <C> <C> <C> <C>
2. The Northern Trust Company,
N.A. 4,851,522 -- 81,659 100
3. Wellington Management 4,794,324 57,198 81,659 100
Company, LLP
4. Fundamental investment policies 4,851,622 -- 81,659 --
5. Deloitte & Touche LLP 4,851,622 -- 81,659 --
6. There was no other business voted upon at the Annual Meeting of Shareholders.
</TABLE>
SUPPLEMENTAL INFORMATION
Paul H. Broyhill, Chairman of the Board, and E. D. Beach, President, are
primarily responsible for the day-to-day management of the Company's
portfolio and have had such responsibility since the inception of the
Fund. In addition, portions of the Company's portfolio are managed by IBJ
Whitehall Bank & Trust Company, ("IBJ Whitehall"), which is responsible
for approximately $20.3 million of the Fund's portfolio, W. H. Reaves &
Co., Inc. ("Reaves & Co."), which is responsible for approximately $8.5
million of the Fund's portfolio, The Northern Trust Company, N.A.
("Northern Trust"), which is responsible for approximately $10 million of
the Fund's portfolio, and Wellington Management Company, LLP
("Wellington"), which is responsible for approximately $9.8 million of the
Fund's portfolio. Paul Blaustein, a Senior Investment Officer of IBJ
Whitehall, is the portfolio manager responsible for the portion of the
Company's portfolio managed by IBJ Whitehall; William H. Reaves, who is
the Chief Investment Officer of Reaves & Co., is the portfolio manager
responsible for the portion of the Company's portfolio managed by Reaves &
Co; Robert A. Mitchell, a Vice President with Northern Trust, is the
portfolio manager responsible for the portion of the Company's portfolio
managed by Northern Trust; and Michael Rodier, Vice President with
Wellington, is the portfolio manager responsible for the portion of the
Company's portfolio managed by Wellington. Mr. Blaustein has held his
current position with IBJ Whitehall for more than two years. Mr. Reaves
has held his current position with Reaves & Co. for more than five years.
Mr. Mitchell has held his current position with Northern Trust for more
than five years. Mr. Rodier has held his current position with Wellington
for more than five years.
* * * * * * * *
-8-
<PAGE>
BMC FUND, INC.
FINANCIAL HIGHLIGHTS
TEN YEAR PERIOD ENDED MARCH 31, 1999
AND SIX MONTH PERIOD ENDED SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
The following table presents financial information divided into three parts: per
share operating performance, total investment return and ratios and supplemental
data for each of the years in the ten year period ended March 31, 1999 and in
the six month period ended September 30, 1999. The first part, per share
operating performance, details the changes on a per share basis of the fund'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 fund's shares of stock.
Part three, ratios and supplemental data, provides additional financial
information related to the fund's performance.
<TABLE>
<CAPTION>
Six
Months
Ended Years Ended March 31
PER SHARE OPERATING September 30, ------------------------------------------------------------------------
PERFORMANCE 1999 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 29.01 $ 30.55 $ 29.33 $ 29.40 $ 28.23 $ 28.02 $ 28.59
-------- -------- -------- -------- -------- -------- --------
Net investment income 1.54 1.04 1.26 1.29 1.22 1.28 1.30
Net gains (losses) on investments (.45) (.16) 1.95 .54 1.69 .46 (.46)
-------- -------- -------- -------- -------- -------- --------
Total from investment operations 1.09 .88 3.21 1.83 2.91 1.74 .84
-------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income 0.66 1.49 1.14 1.16 1.05 1.20 1.21
Distributions from capital gains -- .93 .85 .74 .69 .33 .20
-------- -------- -------- -------- -------- -------- --------
Total distributions .66 2.42 1.99 1.90 1.74 1.53 1.41
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 29.44 $ 29.01 $ 30.55 $ 29.33 $ 29.40 $ 28.23 $ 28.02
======== ======== ======== ======== ======== ======== ========
Per share market value, end of period* $ 26.00 $ 26.00 $ 26.00 $ 26.00 $ 26.00 $ 26.00 $ 26.00
======== ======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN 8.31% ** 3.38% 12.33% 7.05% 11.17% 6.68% 3.25%
======== ======== ======== ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $145,228 $143,092 $150,705 $144,702 $145,036 $139,248 $138,230
Ratio of expenses to average net assets .36% ** .32% .27% .27% .29% .30% .30%
Ratio of net investment income to
average net assets 10.49% ** 3.50% 4.18% 4.39% 4.21% 4.55% 4.60%
Portfolio turnover rate 75.35% 80.17% 26.98% 31.23% 21.75% 32.29% 22.48%
<CAPTION>
Years Ended March 31
PER SHARE OPERATING ----------------------------------------------
PERFORMANCE 1993 1992 1991 1990
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 27.77 $ 27.71 $ 27.69 $ 27.58
-------- -------- -------- --------
Net investment income 1.42 1.62 1.76 1.84
Net gains (losses) on investments 1.14 .31 .30 .27
-------- -------- -------- --------
Total from investment operations 2.56 1.93 2.06 2.11
-------- -------- -------- --------
Less distributions:
Dividends from net investment income 1.45 1.72 1.83 1.92
Distributions from capital gains .29 .15 .21 .08
-------- -------- -------- --------
Total distributions 1.74 1.87 2.04 2.00
-------- -------- -------- --------
Net asset value, end of period $ 28.59 $ 27.77 $ 27.71 $ 27.69
======== ======== ======== ========
Per share market value, end of period* $ 26.00 $ 26.00 $ 26.00 $ 26.00
======== ======== ======== ========
TOTAL INVESTMENT RETURN 9.83% 7.39% 7.93% 8.12%
======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $141,023 $136,994 $136,735 $136,633
Ratio of expenses to average net assets .27% .29% .31% .28%
Ratio of net investment income to
average net assets 5.02% 5.82% 6.36% 6.66%
Portfolio turnover rate 30.12% 32.74% 29.17% 18.87%
</TABLE>
* Unaudited - Based on stock trades during that year.
** Annualized
-9-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Coupon Percent
Interest Maturity Maturity Market of Net
Debt Issuer Rate Date Value Value Assets
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS &
GOVERNMENT ISSUES:
General Elec Cap Corp Mtn 6.330 9/17/01 $ 200,000 $ 200,272
Safeway Inc 5.875 11/15/01 125,000 122,695
Nabisco Inc 6.700 6/15/02 450,000 444,938
Bank One Corp 6.400 8/1/02 200,000 199,563
Raytheon Co 6.450 8/15/02 125,000 123,945
Transamerica Financial Corp 7.250 8/15/02 170,000 171,434
Wells Fargo & Co 6.500 9/3/02 200,000 199,188
Occidental Pete Corp 6.750 11/15/02 462,000 458,391
Boeing Co 6.350 6/15/03 200,000 197,688
Lehman Brothers Holdings Inc 7.250 10/15/03 1,000,000 1,002,188
General Motors Accep Corp 5.750 11/10/03 200,000 192,176
CCB Financial Corp 6.750 12/1/03 605,000 599,706
Eastman Chemical Co 6.375 1/15/04 1,000,000 971,250
Oakwood Homes Corp 7.875 3/1/04 1,000,000 933,438
Conoco Inc 5.900 4/15/04 175,000 169,203
Hertz Corp 7.000 7/1/04 1,000,000 1,003,750
Hilton Hotels Corp 7.000 7/15/04 430,000 410,112
Textron Inc 6.375 7/15/04 200,000 196,187
Ford Motor Credit Co 6.700 7/16/04 200,000 198,688
Caterpillar Financial Svc Corp 6.875 8/1/04 200,000 200,104
Duke Capital Corp 7.250 10/1/04 200,000 200,542
United Dominion Realty Tr 7.730 4/5/05 1,000,000 969,062
Rite Aid Corp 7.625 4/15/05 1,000,000 870,625
Federal Home Loan Banks Cons 6.005 4/29/05 500,000 483,125
Ryder Systems Inc 6.500 5/15/05 725,000 702,570
National City Corp 7.200 5/15/05 200,000 200,437
Worldcom Inc GA 6.400 8/15/05 200,000 195,187
Federal Home Loan Banks Cons 6.000 12/14/05 500,000 480,312
Paine Webber Group Inc 6.750 2/1/06 800,000 768,000
Philip Morris Companies Inc 6.375 2/1/06 1,000,000 944,687
Federal Realty Invt Trust 6.990 3/10/06 500,000 476,094
New Keycorp 7.500 6/15/06 500,000 502,812
Avalon Bay Communities Inc 6.800 7/15/06 500,000 473,750
First National Bank Boston, MA 7.375 9/15/06 500,000 499,531
Federal Home Loan Banks Cons 6.310 10/27/06 1,000,000 964,688
Seagram Ltd 8.350 11/15/06 590,000 617,103
United Dominion Realty Tr 7.250 1/15/07 500,000 460,781
</TABLE>
-10-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Coupon Percent
Interest Maturity Maturity Market of Net
Debt Issuer Rate Date Value Value Assets
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS &
GOVERNMENT ISSUES (Continued):
Norfolk Southern Corp 7.350 5/15/07 $ 150,000 $ 150,260
Federal Natl Mortgage Assn 6.610 4/23/08 2,000,000 1,917,500
Owens Corning 7.700 5/1/08 660,000 642,056
Household Finance Corp 6.400 6/17/08 200,000 187,750
Associates Corp North America 6.250 11/1/08 200,000 188,238
Federal Home Loan Mtg. Deb. 6.250 2/3/09 1,500,000 1,416,563
AT&T Corp 6.000 3/15/09 200,000 185,829
Federal Home Loan Banks Cons 6.680 3/30/09 1,000,000 962,188
Federal Home Loan Banks Cons 6.585 4/27/09 500,000 478,906
Coca Cola Bottling Co 6.375 5/1/09 500,000 464,844
Federal Home Loan Mtg. Deb. 6.750 5/5/09 500,000 482,188
Goodrich B F Co 6.600 5/15/09 500,000 475,781
Federal Home Loan Mtg. Deb. 7.300 6/30/09 500,000 492,500
Daimler Chrysler North America 7.200 9/1/09 200,000 200,625
----------- -----------
TOTAL INVESTMENTS IN
CORPORATE BONDS AND
GOVERNMENT ISSUES $26,967,000 $26,049,450 17.94%
=========== =========== =====
</TABLE>
-11-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Company Name Held Cost Value Net Assets
<S> <C> <C> <C> <C>
MUTUAL FUNDS:
Baron Asset Fund 8,845 $ 300,655 $ 456,157
Blair, William Income Fund 49,673 512,838 501,199
Central European Value Fund 3,000 35,886 30,000
Cornercap Growth Fund 30,884 339,055 345,904
Corporate Hi Yield Fund III 5,000 63,475 56,250
Dreyfus Invt. Grade Short Term Income Fund 43,654 513,275 511,622
Emerging Markets Floating Fund 3,000 40,218 33,562
Europe Fund Inc 3,000 54,093 49,875
European Warrant Fund 14,500 231,324 215,688
Federated High Yield Fund 51,809 455,757 431,053
Fidelity Fixed Income High Income Fund 40,544 523,783 484,099
First Australia Prime Fund 45,000 300,375 272,835
H & Q Life Sciences Fund 5,000 63,162 70,625
High Yield Income Fund 15,000 105,231 100,312
Hotchkis & Wiley Low Duration Fund 49,850 500,000 493,021
Ivy Fund Emerging Growth A 9,916 263,024 347,658
Ivy Fund Global Science & Technology A 13,882 211,899 441,320
Ivy Global Fund Cl A 9,512 120,159 122,137
Ivy International Fund A 6,696 213,693 297,232
Janus Flex Income Fund 31,199 308,004 292,027
MAS Funds High Yield Portfolio 56,722 521,419 497,451
Metropolitan West Low Duration Bond Fund 50,364 512,152 509,684
Midcap SPDR Trust I 5,300 323,628 380,606
Neuberger & Berman Ltd Maturity Bond Fund 52,377 512,044 500,197
New American High Income Fund 15,000 68,100 60,000
Northeast Investors Trust Fund 49,416 522,919 498,115
Pilgrim Prime Rate 25,000 236,000 237,500
Pimco High Yield Fund 45,721 516,633 490,589
Senior High Income Fund 30,000 239,944 219,375
SPDR Trust Unit I 1,000 77,942 128,750
Strong Income Funds-High Yield Bond Fund 92,749 1,039,921 987,777
Strong Short Term Bond Fund 53,438 512,362 503,924
Van Kampen Senior Income Fund 6,000 57,795 54,750
Vanguard Bond Index Fund-Short Term Port. 51,264 510,982 503,927
Vanguard Fixed Income Series-High Yield
Corp. 75,279 591,686 554,055
Vanguard Fixed Income Series-Short Term
Corp. 47,553 512,472 503,586
Warburg Pincus Fixed 50,067 511,451 496,667
----------- -----------
TOTAL INVESTMENT IN MUTUAL FUNDS $12,423,356 $12,679,529 8.73%
=========== =========== ====
</TABLE>
-12-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Company Name Held Cost Value Net Assets
<S> <C> <C> <C> <C>
LIMITED PARTNERSHIPS:
Bay Harbour 90-1, LP 500,000 $ 500,000 $ 570,407
Buckeye Partners LP 3,700 98,973 99,900
Golfsouth 1994 LP 400,000 380,000 200,000
Mariner Partners, LP 500,000 500,000 560,211
Northern Border Partners 5,300 164,012 153,371
Piedmont Venture Partners 100,000 100,000 100,000
Piedmont Venture Partners II 170,758 170,758 170,758
Rose Glen Capital Partners I, LP 750,000 750,000 1,176,923
Safe Harbor Fund, LP 1,000,000 1,000,000 1,269,427
Stark Investments, LP 1,000,000 1,000,000 1,107,118
Suburban Propane Partners LP 5,000 103,450 101,875
ULQ Hedge Fund LP 78,264 1,025,002 1,240,638
WP Strategic LP 30,625 30,625 16,736
---------- ----------
TOTAL INVESTMENT IN LIMITED
PARTNERSHIPS $5,822,820 $6,767,364 4.66%
========== ========== ====
</TABLE>
-13-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS:
Aerospace/Defense 4,000 Boeing Co $ 203,200 $ 170,500 .12%
6,100 Raytheon Co 162,351 302,713 .21
----------- ----------- -----
365,551 473,213 .33
----------- ----------- -----
Aluminum 8,700 Alcoa Inc 283,678 539,944 .37
----------- ----------- -----
Apparel 5,100 Gap Inc 187,208 163,200 .11
7,400 Jones Apparel Group 55,234 212,750 .15
----------- ----------- -----
242,442 375,950 .26
----------- ----------- -----
Auto Parts 2,096 Delphi Auto Systems Corp 24,014 33,667 .02
----------- ----------- -----
Auto & Truck 3,000 General Motors Corp 121,406 188,812 .13
----------- ----------- -----
Banking 8,000 Allied Irish Banks ADR 210,756 203,500 .14
420 Banc One Corp 22,216 14,621 .01
10,248 Banco Santander Cent Hispo ADR 99,839 105,683 .07
3,500 Bankamerica Corp New 61,206 194,906 .14
600 Capital One Financial Corp 24,424 23,400 .02
7,717 Charter One Financial Inc 210,299 178,456 .12
8,900 Citigroup Inc 360,728 391,600 .27
4,500 First American Tennessee 67,187 195,750 .14
19,160 Mellon Financial Corp 203,452 644,255 .44
1,575 Old Kent Financial Corp 66,763 58,472 .04
1,600 State Street Corp 109,232 103,400 .07
3,200 US Bancorp Del. 97,864 96,600 .07
6,000 Wells Fargo & Co Del 165,101 237,750 .16
----------- ----------- -----
1,699,067 2,448,393 1.69
----------- ----------- -----
Beverage - Alcoholic 2,200 Anheuser Busch Companies Inc 75,120 154,137 .11
----------- ----------- -----
Beverage - Nonalcoholic 9,000 PepsiCo Inc 328,697 274,500 .19
1,200 Starbucks Corp 24,975 29,738 .02
----------- ----------- -----
353,672 304,238 .21
----------- ----------- -----
Building Materials 10,000 Fletcher Challenge Bldg ADR 128,360 122,500 .08
4,700 Home Depot Inc 262,875 322,537 .22
5,112 Lowes Companies Inc 161,162 249,210 .17
----------- ----------- -----
552,397 694,247 .47
----------- ----------- -----
Broadcasting/Cable TV 5,100 AT&T Corp-Liberty Media 168,402 190,294 .13
3,400 CBS Corp 159,868 157,250 .11
2,900 Gannett Inc 203,752 200,644 .14
----------- ----------- -----
532,022 548,188 .38
----------- ----------- -----
</TABLE>
-14-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
Canadian Energy 10,100 Imperial Oil Ltd Com New $ 195,413 $ 210,206 .14%
----------- ----------- -----
Chemical - Basic 4,500 Monsanto Co 45,659 160,594 .11
----------- ----------- -----
Chemical - Diversified 4,600 Air Products & Chemicals Inc 118,101 134,550 .09
2,400 E I Du Pont de Nemours 172,248 145,200 .10
----------- ----------- -----
290,349 279,750 .19
----------- ----------- -----
Computers and Peripherals 3,000 3Com Corp 79,564 86,250 .06
9,300 Compaq Computer Corp 219,558 212,737 .15
2,520 EMC Corp Mass 136,912 179,865 .12
1,010 Fiserv Inc. 27,523 32,825 .02
4,200 Hewlett Packard Co 59,839 381,150 .26
6,900 Micron Technology Inc 323,745 458,850 .32
6,040 Sun Microsystems Inc 118,699 561,720 .39
----------- ----------- -----
965,840 1,913,397 1.32
----------- ----------- -----
Computer Software 12,900 Automatic Data Processing 276,355 575,663 .40
and Services 2,500 Ciber Inc 48,364 38,281 .03
5,140 Cisco Systems Inc 321,017 352,411 .24
3,000 Computer Horizons Corp 42,843 34,875 .02
600 Computer Sciences Corp 39,500 42,187 .03
1,320 Concord EFS Inc 27,335 27,225 .02
3,000 Electronic Daya Systems 158,115 158,812 .11
2,340 International Business Machines 285,554 283,140 .19
5,170 Microsoft Corp 438,673 468,208 .32
10,000 Overland Data Inc 69,483 51,875 .04
770 Paychex Inc 19,635 26,276 .02
860 Solectron Corp 58,605 61,759 .04
2,000 Xircom Inc 75,573 85,375 .06
----------- ----------- -----
1,861,052 2,206,087 1.52
----------- ----------- -----
Consumer Products 8,600 Kimberly Clark Corp 459,710 453,650 .31
4,000 Newell Rubbermaid Inc 195,871 114,250 .08
480 Schering Plough Corp 23,080 20,940 .01
----------- ----------- -----
678,661 588,840 .40
----------- ----------- -----
Construction 1,400 Halliburton Co 67,674 57,400 .04
----------- ----------- -----
</TABLE>
-15-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
Diversified Companies 7,800 AlliedSignal Inc $ 270,803 $ 467,513 .32%
1,800 Corning Inc 127,161 123,412 .08
1,940 Tyco Intl Ltd 188,586 200,305 .14
6,550 United Technologies CP 253,558 388,497 .27
3,000 Warner Lambert Co 188,968 199,125 .14
----------- ----------- -----
1,029,076 1,378,852 .95
----------- ----------- -----
Drugs 4,400 American Home Products 195,613 182,600 .13
10,000 Amgen Inc 296,281 815,000 .56
4,395 Cardinal Health Inc 228,188 239,527 .17
1,140 Elan PLC ADR 32,370 38,261 .03
25,300 Johnson & Johnson 742,683 2,324,438 1.60
2,000 McKesson HBOC Inc 62,491 58,000 .04
2,970 Merck & Co Inc 185,679 192,493 .13
4,000 Novartis AG Sponsored ADR 298,929 296,684 .20
15,450 Pfizer Inc 232,177 554,269 .38
----------- ----------- -----
2,274,411 4,701,272 3.24
----------- ----------- -----
Drugstores 8,888 CVS Corp 198,838 362,741 .25
1,040 Walgreen Co 26,281 26,390 .02
----------- ----------- -----
225,119 389,131 .27
----------- ----------- -----
Electrical Equipment 9,400 General Electric Co 595,524 1,114,488 .77
----------- ----------- -----
Electric Utilities 4,300 Allegheny Energy Inc 128,097 137,062 .09
15,400 Ameren Corp 596,330 582,312 .40
6,600 American Electric Power Inc 269,370 225,225 .16
8,900 Chesapeake Utilities Corp 142,100 153,525 .11
5,500 Cilcorp Inc 329,961 356,469 .25
13,200 Cinergy Corp 400,320 373,725 .26
6,300 CLECO Corp 191,340 204,356 .14
9,300 CMP Group Inc 176,697 245,288 .17
11,800 CMS Energy Corp 493,083 400,462 .28
5,000 Constellation Energy Group Inc 129,063 140,625 .10
12,650 Dominion Resources Inc VA 471,454 570,831 .39
9,300 DPL Inc 159,184 163,912 .11
18,800 Duke Energy Corp 968,431 1,036,350 .71
8,000 Eastern Utilities Assoc 231,407 239,000 .16
9,300 FirstEnergy Corp 270,007 235,406 .16
2,000 FPL Group Inc 109,205 100,750 .07
4,000 Idacorp Inc 118,160 120,500 .08
1,500 Illinova Corp 48,059 42,094 .03
</TABLE>
-16-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
Electric Utilities (continued) 4,500 Kansas City Power & Light Co $ 109,586 $ 108,844 .07%
2,500 LG&E Energy Corp 54,788 53,125 .04
5,000 New Century Energies 176,263 167,188 .12
5,000 New England Electric Systems 241,133 259,375 .18
5,000 Nisource Inc 140,326 110,625 .08
6,800 Northern States Power Minn 159,622 146,625 .10
7,200 OGE Energy Corp 167,400 160,200 .11
6,600 Pacificorp 112,464 132,825 .09
3,000 Reliant Energy Inc 85,406 81,188 .06
7,700 Rochester Gas & Electric 199,920 188,650 .13
18,600 Scana Corp 447,283 449,887 .31
5,700 Sempra Energy 110,309 118,631 .08
17,400 Southern Co 406,321 448,050 .31
26,700 Teco Energy Inc 622,397 564,038 .39
5,000 Texas Utilities Co 204,700 186,562 .13
2,200 Utilicorp UTD Inc 49,863 46,338 .03
15,800 Wisconsin Energy Corp 458,751 370,313 .25
----------- ----------- -----
8,978,800 8,920,356 6.15
----------- ----------- -----
Electronics 12,000 Altera Corp 339,837 520,500 .36
490 Linear Technology Corp 29,523 28,803 .02
1,000 Maxim Integrated Products 400,142 630,938 .44
7,187 Molex Inc 145,014 261,427 .18
5,000 SCI Systems Inc 169,953 222,187 .15
----------- ----------- -----
1,084,469 1,663,855 1.15
----------- ----------- -----
Entertainment 7,000 Bally Total Fitness Hldgs 114,187 213,937 .15
4,590 Carnival Corp 145,802 199,665 .14
6,000 Walt Disney Co 117,360 156,000 .11
940 Fox Entertainment Group 21,756 19,799 .01
300 Time Warner Inc 20,125 18,225 .01
----------- ----------- -----
419,230 607,626 .42
----------- ----------- -----
Environmental 4,000 Waste Industries Inc 59,771 53,250 .04
----------- ----------- -----
</TABLE>
-17-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
Financial Services 2,600 Associates First Capital $ 93,133 $ 93,600 .06%
12,500 Espirito Santo Financial SA ADR 216,363 200,000 .14
1,000 Federal Home Loan Mortgage 52,770 52,000 .03
520 Finova Group Inc 21,980 18,980 .01
3,200 First Data Corp 155,464 140,400 .10
3,100 Franklin Resources Inc 115,150 94,744 .06
1,600 MBNA Corp 44,532 36,500 .03
7,000 Onyx Acceptance Corp 58,798 53,375 .04
----------- ----------- -----
758,190 689,599 .47
----------- ----------- -----
Food Processing 710 Keebler Foods Co 20,826 21,211 .01
5,500 Nabisco Hldgs Corp Cl A 159,315 190,094 .13
6,150 Nestle SA Sponsored ADR 201,834 577,879 .40
2,500 Sara Lee Corp 59,302 58,438 .04
----------- ----------- -----
441,277 847,622 .58
----------- ----------- -----
Food Wholesalers 11,000 Sysco Corp 168,835 385,687 .27
----------- ----------- -----
Foreign Utilities 9,918 Enersis SA ADR 202,861 207,038 .14
6,000 Scottish Power ADR 204,344 217,875 .15
----------- ----------- -----
407,205 424,913 .29
----------- ----------- -----
Foreign Telecommunications 2,500 BCE Inc 119,006 124,531 .09
7,600 Cable & Wireless ADR 204,818 251,750 .17
3,800 Ericsson Tel 22,848 118,750 .08
7,700 Telecom New Zealand ADR 282,988 246,400 .17
2,448 Telefonica SA ADR 102,432 117,459 .08
----------- ----------- -----
732,092 858,890 .59
----------- ----------- -----
Gold/Silver Mining 4,620 Franco Nevada Mining 81,622 99,880 .07
10,000 Pan American Silver 55,639 72,500 .05
6,900 Stillwater Mining Co 100,310 185,437 .13
----------- ----------- -----
237,571 357,817 .25
----------- ----------- -----
Grocery 20,600 Kroger Co 156,757 454,488 .31
1,400 Safeway Inc 69,241 53,288 .04
----------- ----------- -----
225,998 507,776 .35
----------- ----------- -----
Health Care Information 3,600 Servicemaster Co 64,297 57,825 .04
----------- ----------- -----
</TABLE>
-18-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
Hotel/Gaming 9,000 International Game Tech $ 168,630 $ 162,000 .11%
25,000 Mirage Resorts Inc 416,362 350,000 .24
5,000 Park Place Entertainment 52,921 62,500 .04
----------- ----------- -----
637,913 574,500 .39
----------- ----------- -----
Household Products 7,000 Colgate Palmolive Co 89,886 320,250 .22
----------- ----------- -----
Industrial Services 2,000 Praxair Inc 98,665 92,000 .06
----------- ----------- -----
Insurance 1,400 American General Corp 102,666 88,550 .06
8,351 American Intl Group 395,484 726,015 .50
1,000 Blanch, EW Holdings Inc 55,865 65,125 .04
4,000 Conseco Inc 175,165 76,000 .05
1,800 Hartford Financial Services 91,724 73,575 .05
7,450 ING Groep NV Sponsored ADR 134,200 407,888 .28
2,900 Marsh & McLennan Companies 205,777 198,650 .14
230 Progressive Corp Ohio 28,366 18,788 .01
----------- ----------- -----
1,189,247 1,654,591 1.13
----------- ----------- -----
Internet Service Providers 200 America Online Inc 17,117 20,813 .01
----------- ----------- -----
Investment Company - 5,000 Allied Capital Corp 104,445 112,187 .08
Domestic 10,000 Pilgrim Prime Rate 95,233 94,380 .06
5,000 Sector SPDR 112,867 110,625 .08
----------- ----------- -----
312,545 317,192 .22
----------- ----------- -----
Investment Company -
Income 20,000 Credit Suisse Asset Mgmt. 151,706 130,000 .09
----------- ----------- -----
Machinery 470 Applied Materials Inc 36,601 36,513 .03
8,000 Dover Corp 87,145 327,000 .22
----------- ----------- -----
123,746 363,513 .25
----------- ----------- -----
Manufactured Housing/ 6,000 Clayton Homes Inc 70,653 52,125 .04
Recreational Vehicles ----------- ----------- -----
Medical Services 4,900 Abbott Labs 206,204 179,769 .12
12,200 Healthsouth Corp 140,810 74,725 .05
6,000 Laser Vision Centers Inc 145,842 84,188 .06
20,000 Vista Eyecare Inc 62,700 50,000 .03
----------- ----------- -----
555,556 388,682 .26
----------- ----------- -----
</TABLE>
-19-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
Medical Supplies 5,400 Baxter Intl Inc $ 198,148 $ 325,350 .22%
3,300 Boston Scientific Corp 106,697 81,675 .06
3,610 Bristol Myers Squibb 246,882 243,675 .17
930 Guidant Corp 53,610 49,871 .03
780 Medtronic Inc 26,089 27,739 .02
----------- ----------- -----
631,426 728,310 .50
----------- ----------- -----
Natural Gas - Distributing 12,500 Eastern American Nat Gas 177,250 164,844 .11
5,000 Indiana Energy Inc 110,668 100,313 .07
5,000 Kinder Morgan 64,194 112,188 .08
6,200 MCN Energy Group Inc 100,611 106,562 .07
1,600 Oneok Inc New 48,562 48,500 .03
4,000 Piedmont Natural Gas Inc 137,160 121,250 .08
6,300 Providence Energy Corp 121,109 174,825 .12
4,700 South Jersey Industries Inc 103,982 123,962 .09
3,000 Southwest Gas Corp 81,683 80,812 .06
8,300 Transcanada Pipelines 105,638 108,419 .07
8,200 Westcoast Energy Inc 162,740 153,750 .11
----------- ----------- -----
1,213,597 1,295,425 .89
----------- ----------- -----
Natural Gas - Diversified 4,300 Consolidated Natural Gas 236,382 268,213 .18
3,000 El Paso Energy 113,591 120,750 .08
18,300 Enron Corp 529,565 751,444 .52
11,200 Keyspan Energy 293,735 320,600 .22
300 National Fuel Gas NJ 12,968 14,156 .01
2,000 Nicor Inc 74,580 74,375 .05
10,400 Questar Corp 200,235 188,500 .13
5,000 RGC Resources Inc 102,700 98,750 .07
4,300 Yankee Energy Systems Inc 106,535 183,556 .13
----------- ----------- -----
1,670,291 2,020,344 1.39
----------- ----------- -----
Office Equipment & 23,000 Office Depot Inc 441,251 241,500 .17
Supplies 990 Staples Inc 21,780 21,594 .01
3,400 Xerox Corp 162,824 142,588 .10
----------- ----------- -----
625,855 405,682 .28
----------- ----------- -----
Oilfield Services & 2,700 Apache Corp 72,763 116,606 .08
Equipment 1,600 Petroleum Geo-Svcs ADR 29,104 30,500 .02
7,000 R & B Falcon Corp 67,548 91,875 .06
5,300 Schlumberger Ltd 302,162 330,256 .23
6,500 Transocean Offshore 181,285 199,063 .14
----------- ----------- -----
652,862 768,300 .53
----------- ----------- -----
</TABLE>
-20-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
Packaging & Container 1,500 Sealed Air Corp $ 87,030 $ 76,969 .05%
----------- ----------- -----
Paper & Forest Products 510 Georgia Pacific Corp 23,438 20,623 .01
3,500 Plum Creek Timber 99,671 109,812 .08
1,900 Weyerhaeuser 124,844 109,488 .08
----------- ----------- -----
247,953 239,923 .17
----------- ----------- -----
Petroleum - Integrated 9,500 Atlantic Richfield Co 635,730 841,937 .58
400 BP Amoco PLC ADR 39,545 44,325 .03
3,300 Chevron Corp 313,796 292,875 .20
1,140 Conoco Inc Cl A 30,375 31,635 .02
5,300 Equitable Resources Inc 144,971 200,406 .14
10,880 Exxon Corp 644,135 826,880 .57
6,600 Mobil Corp 244,860 664,950 .46
5,500 Occidental Petroleum 101,282 127,187 .09
2,500 Petroleum & Resource Corp 88,208 84,531 .06
10,500 Repsol SA ADR 119,233 209,344 .14
8,810 Royal Dutch Petroleum 449,767 520,341 .36
3,974 Texaco Inc 210,100 250,859 .17
6,600 Unocol Corp com 269,489 244,612 .17
4,600 USX Marathon Group 126,081 134,550 .09
6,000 YPF Sociedad Anonima ADR 158,884 233,625 .16
----------- ----------- -----
3,576,456 4,708,057 3.24
----------- ----------- -----
Petroleum - Producing 4,600 Anadarko Pete Corp 165,055 140,588 .10
570 Burlington Resources Inc 26,053 20,947 .01
6,200 Kerr McGee Corp 252,172 341,387 .23
3,000 Noble Affiliates Inc 114,585 87,000 .06
4,000 Teppco Partners 104,160 80,000 .06
----------- ----------- -----
662,025 669,922 .46
----------- ----------- -----
Petroleum - Refining 5,000 Valero Energy Corp 120,133 96,250 .07
----------- ----------- -----
Railroad 6,600 Norfolk Southern Corp 179,579 161,700 .11
1,900 Union Pacific Corp 103,826 91,319 .06
----------- ----------- -----
283,405 253,019 .17
----------- ----------- -----
</TABLE>
-21-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
R.E.I.T.s 5,000 American Health Properties $ 100,525 $ 100,625 .07%
290 Apartment Invt & Mgmt 11,497 11,093 .01
6,600 Archstone Communities 131,852 130,350 .09
8,900 Boston Properties Inc 301,520 273,119 .19
5,700 BRE Properties Inc 128,478 136,447 .09
4,300 Chelsea GCA Realty Inc 131,584 135,987 .09
12,500 Choice Hotels Intl Inc 152,049 214,063 .15
6,700 Colonial Properties Trust 165,020 179,225 .12
12,900 Crescent Real Estate 282,697 232,200 .16
430 Equity Office Properties 10,759 9,998 .01
3,000 Equity Residential Properties 124,433 127,125 .09
6,000 Federal Realty Invt Trust 126,615 125,625 .09
12,400 Felcor Lodging 253,458 217,000 .15
7,300 Kilroy Realty Corp 152,564 154,212 .11
3,400 Kimco Realty Corp 124,448 121,550 .08
10,000 LaSalle Hotel Properties 143,396 129,375 .09
8,800 MGI Properties Inc 169,839 79,200 .05
14,700 Mid-Atlantic Realty Trust 148,807 153,431 .11
20,600 New Plan Excel Realty Trust 592,213 527,250 .36
9,000 Pennsylvania Real Estate Trust 176,891 169,875 .12
8,300 Post Properties Inc 321,213 326,294 .22
4,800 Simon Property Group 130,092 107,700 .07
3,800 Spieker Properties Inc 130,653 131,812 .09
10,100 Tanger Factory Outlet 237,247 230,406 .16
10,200 Trinet Corp Realty Trust 285,533 242,887 .17
17,000 United Dominion Realty Trust 177,930 190,196 .13
3,600 Vornado Realty Trust 124,344 117,000 .08
----------- ----------- -----
4,835,657 4,574,045 3.15
----------- ----------- -----
Restaurants 11,400 McDonalds Corp 413,305 493,050 .34
----------- ----------- -----
Retail - Special Lines 600 Circuit City Stores 24,036 25,313 .02
----------- ----------- -----
Retail Stores 3,000 Costco Companies Inc 54,625 216,000 .15
700 Dayton Hudson Corp 40,395 42,044 .03
5,000 Dillard's Inc 128,666 101,562 .07
510 Kohl's Corp 34,499 33,724 .02
6,900 Wal Mart Stores Inc 279,763 328,181 .23
----------- ----------- -----
537,948 721,511 .50
----------- ----------- -----
Securities Brokerage 2,500 Merrill Lynch & Co Inc 169,833 168,437 .12
----------- ----------- -----
</TABLE>
-22-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
Semiconductors 9,900 Intel Corp $ 572,406 $ 735,694 .51%
3,500 Motorola Inc 202,367 308,000 .21
900 National Semiconductor 26,643 27,506 .02
8,000 Novellus Systems Inc 410,386 539,500 .37
2,260 Texas Instruments Inc 160,762 185,885 .13
300 Vitesse Semiconductor 20,212 25,612 .02
8,000 Xilinx Inc 152,875 524,250 .36
----------- ----------- -----
1,545,651 2,346,447 1.62
----------- ----------- -----
Services 27,000 Cendant Corp 317,735 479,250 .33
430 Cintas Corp 25,988 24,859 .02
8,000 IT Group 100,693 76,500 .05
4,500 Robert Half Intl Inc 122,531 106,875 .07
4,000 Sovran Self Storage 100,910 91,000 .06
----------- ----------- -----
667,857 778,484 .53
----------- ----------- -----
Telecommunications 2,500 American Tower Corp 55,050 49,063 .03
Equipment 12,500 Ciena Corp 235,882 456,250 .31
10,338 Lucent Technologies 282,255 670,678 .46
2,500 Metricom Inc 68,208 56,875 .04
10,000 Scientific Atlanta Inc 164,736 495,625 .35
----------- ----------- -----
806,131 1,728,491 1.19
----------- ----------- -----
Telecommunications 9,034 Alltel Corp 421,647 635,768 .44
Services 7,530 Ameritech Corp New 485,765 502,627 .35
7,780 AT&T Corp 290,540 338,430 .23
9,100 Bell Atlantic Corp 513,528 612,544 .42
660 BellSouth Corp 33,549 29,700 .02
7,500 CenturyTel Inc 261,071 304,687 .21
7,000 Cincinnati Bell Inc 156,968 136,063 .09
7,000 Global Crossing Ltd 210,206 185,500 .13
6,000 Globalstar Telecommunications 114,186 138,000 .10
7,070 GTE Corp 319,349 543,506 .37
10,000 Loral Space & Communication 197,733 171,875 .12
4,440 MCI Worldcom Inc 345,730 319,125 .22
4,800 MediaOne Group Inc 347,872 327,900 .23
21,700 SBC Communications Inc. 776,503 1,108,056 .76
8,000 Sprint Corp 100,504 434,000 .30
2,000 Sprint Corp PCS 12,068 149,125 .10
2,320 Tellabs Inc 138,785 132,095 .09
----------- ----------- -----
4,726,004 6,069,001 4.18
----------- ----------- -----
</TABLE>
-23-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Industries Held Company Name Cost Value Net Assets
<C> <C> <S> <C> <C> <C>
COMMON STOCKS
(Continued):
Toiletries & Cosmetics 2,310 Procter & Gamble $ 212,573 $ 216,563 .15%
----------- ----------- -----
Water Utility 11,300 American Water Works Inc 298,274 326,994 .23
8,500 Aquarion Co 226,565 304,937 .21
5,000 Philadelphia Suburban Corp 114,458 117,813 .08
5,000 United Water Resources Inc 105,137 163,125 .11
----------- ----------- -----
744,434 912,869 .63
----------- ----------- -----
TOTAL INVESTMENTS IN COMMON STOCKS $53,757,378 $67,346,100 46.37%
=========== =========== =====
</TABLE>
-24-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Company Name Held Cost Value Net Assets
<S> <C> <C> <C> <C>
PREFERRED STOCKS:
ABN Amro Cap Funding II Pfd. 7.125% 9,000 $ 223,673 $ 197,437
Ambac Financial Group Inc Deb 7.08% 9,000 227,048 199,125
American Express Cap Tr I Quips I 7.00% 9,000 225,360 207,562
BNY Cap IV Preferred Tr 6.875% 9,000 223,672 196,875
Citigroup Cap VI Trups 6.875% 9,000 221,985 198,000
Comstat Cap I LP 8.125% 9,000 227,610 214,875
Equitable Res Cap Tr I Pfd. 9,000 227,048 195,750
Finl Sec Assurance Hldgs 7.375% 9,000 228,173 207,000
Fleet Cap Tri IV 7.17% 9,000 225,922 192,375
Lehman Bros Hldgs Inc Quics A 9,000 229,297 221,063
MSDQ Cap Tr I Cap Sec 7.10% 9,000 227,610 199,688
Transcanada Pipelines Pfd 8.5% 9,000 235,485 221,063
WEC Cap Tr I Trups 6.85% 9,000 221,985 190,687
----------- -----------
TOTAL INVESTMENT IN PREFERRED STOCKS $ 2,944,868 $ 2,641,500 1.82%
=========== =========== =====
</TABLE>
-25-
<PAGE>
BMC FUND, INC. SCHEDULE I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS (CONTINUED)
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market Percent of
Industries Company Name Cost Value Net Assets
<C> <S> <C> <C> <C>
Short-term Investments Evergreen Money Market Fund $ 6,621,268 $ 6,621,268
------------ ------------
TOTAL INVESTMENTS IN
SHORT-TERM INVESTMENTS $ 6,621,268 $ 6,621,268 4.56%
============ ============ =====
TOTAL INVESTMENTS - MARKET
VALUE $122,105,211 84.08%
============ =====
Aggregate gross unrealized appreciation of security values $ 17,941,782
Aggregate gross unrealized depreciation of security values (4,550,362)
------------
Net appreciation of security values 13,391,420
Tax cost of securities 108,713,791
------------
Total market value of securities $122,105,211
============
</TABLE>
-26-
<PAGE>
BMC FUND, INC. SCHEDULE II
INVESTMENTS - OTHER THAN SECURITIES
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Market
Value at
End of
Description Period
INVESTMENT LAND:
Residential acreage including subdivided lots in Caldwell,
Rutherford and Wilkes Counties, N.C $150,000 (a)
--------
TOTAL $150,000
========
Aggregate appreciation of investment land and buildings $ 2,955
Tax cost of investment land and buildings 147,045
--------
Market value of investment land and buildings $150,000
========
(a) Non-income producing property.
-27-
<PAGE>
BMC FUND, INC. SCHEDULE III
INVESTMENTS IN AFFILIATES
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of Amount of Equity
Shares Held at in Net Profit Amount of Value at
September 30, and Loss for the Dividends September 30,
Issuer 1999 Period (2) 1999
<S> <C> <C> <C> <C>
Broyhill Industries Inc. - wholly owned
subsidiary 1,000 $ 2,096 $ -- $ 532,141
P. B. Realty, Inc. - wholly owned
subsidiary 1,000 5,342,693 -- 15,173,281
----------- ---- -----------
TOTAL $ 5,344,789 $ -- $15,705,422
=========== ==== ===========
</TABLE>
(2) All of the dividends received by BMC Fund, Inc. from their wholly owned
subsidiaries have been credited to the investment account, since BMC Fund,
Inc. is accounting for their investment in the subsidiary companies on the
equity method.
-28-
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