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Previous: BMC FUND INC, NSAR-B, 2000-05-26 |
Next: SMITH BARNEY SHEARSON FUNDAMENTAL VALUE FUND INC, N-30D, 2000-05-26 |
BMC Fund, Inc.
Financial Statements and
Additional Information for the
Year Ended March 31, 2000
and Independent Auditors' Report
CONFIDENTIAL: For the use of shareholders and the
Securities and Exchange Commission only.
<PAGE>
BMC FUND, INC.
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Page
DIRECTORS AND OFFICERS 1
LETTER TO SHAREHOLDERS 2
FEDERAL INCOME TAX INFORMATION 3
SUPPLEMENTAL PROXY INFORMATION 3-4
INDEPENDENT AUDITORS' REPORT 5
STATEMENT OF ASSETS AND LIABILITIES 6
STATEMENT OF OPERATIONS 7
STATEMENTS OF CHANGES IN NET ASSETS 8
NOTES TO FINANCIAL STATEMENTS 9-10
FINANCIAL HIGHLIGHTS 11
SCHEDULES OF INVESTMENTS:
I Investments in Securities of Unaffiliated Issuers 12-26
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 Ft. 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
DIRECTOR EMERITUS
Clarence A. Holden Lenoir, North Carolina
-1-
<PAGE>
TO OUR SHAREHOLDERS:
We are happy to present to you our 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 twelve months ended March 31, 2000, 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
December 10, 1999 to shareholders of record November 25, 1999 .33
January 28, 2000 to shareholders of record December 25, 1999 .07
March 10, 2000 to shareholders of record February 25, 2000 .33
------
Total $ 1.39
======
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 March 31, 2000, with a total market value of $139,753,406.
It is our intent to render reports to shareholders each six months.
Paul H. Broyhill, Chairman E. D. Beach, President
-2-
<PAGE>
FEDERAL INCOME TAX INFORMATION
We are required by the Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end (March 31, 2000) as to the federal tax status of
dividends paid by the Fund during such fiscal year. Accordingly, we are advising
you that during the fiscal year the Fund paid distributions to its shareholders
totaling $1.39 per share, comprised of $.97 per share ordinary income and short
term capital gains which are taxable as ordinary income, and $.42 per share long
term capital gains which are taxable as such. The shareholders are furnished a
Form 1099 in January of each year which details the federal tax status of
dividends paid by the Fund during the calendar year.
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.
-3-
<PAGE>
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
Votes Votes Votes
Director For Against Withheld Abstentions
<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 -
2. The Northern Trust Company,
N.A. 4,851,522 - 81,659 100
3. Wellington Management
Company, LLP 4,794,324 57,198 81,659 100
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 $25.8 million
of the Fund's portfolio, W. H. Reaves & Co., Inc. ("Reaves & Co."), which is
responsible for approximately $8.6 million of the Fund's portfolio, The Northern
Trust Company, N.A. ("Northern Trust"), which is responsible for approximately
$11.4 million of the Fund's portfolio, and Wellington Management Company, LLP
("Wellington"), which is responsible for approximately $12.3 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.
-4-
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and
Shareholders of BMC Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of BMC
Fund, Inc. (the "Company"), including the schedules of investments, as of March
31, 2000, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years then ended, and
the selected financial highlights for each of the ten years in the period then
ended. These financial statements and financial highlights are the
responsibility of BMC Fund, Inc.'s management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit also includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned at March 31, 2000 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of BMC Fund, Inc. at
March 31, 2000, the results of its operations for the year then ended, the
changes in its net assets for each of the two years then ended, and the
financial highlights for each of the ten years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Deloitte & Touche LLP
May 19, 2000
-5-
<PAGE>
BMC FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS AT MARKET VALUE:
Investment securities (cost - $113,774,273) $139,753,406
Investments in affiliates - wholly owned subsidiaries (equity value - $13,461,290) 15,875,415
Investment in real estate (cost - $146,821) 150,000
Cash and short-term investments 180,520
Receivables, principally accrued interest 624,950
Receivables from brokers 532,397
Other assets 26,558
------------
Total assets 157,143,246
LIABILITIES - Accounts payable and accrued expenses 86,020
------------
NET ASSETS AT MARCH 31, 2000 - EQUIVALENT TO $31.84 PER
SHARE ON 4,933,281 SHARES OF COMMON STOCK OUTSTANDING $157,057,226
============
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 5,860,300
Undistributed nontaxable gain 5,194,714
Unrealized appreciation of investments 28,396,437
------------
NET ASSETS APPLICABLE TO COMMON STOCK OUTSTANDING $157,057,226
============
</TABLE>
See accompanying notes to financial statements.
-6-
<PAGE>
BMC FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2000
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Interest - corporate bonds $ 1,815,952
Other interest and dividends 3,313,797
Equity in earnings of wholly owned subsidiaries 5,885,701
-----------
Total income 11,015,450
-----------
Expenses:
Investment expenses 222,626
Officers' remuneration (Note 3) 68,800
Salaries 60,203
Taxes and license 33,172
Legal and professional fees 54,266
Travel and entertainment 57,340
Property and liability insurance 18,906
Directors' fees (Note 3) 36,250
Rent 14,100
Depreciation expense 2,412
Office supplies and expense 23,997
Miscellaneous 10,067
-----------
Total expenses 602,139
-----------
Net investment income 10,413,311
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain from investment securities sold 1,423,444
Change in unrealized appreciation of investments for the year 8,985,585
-----------
Net gain on investments 10,409,029
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $20,822,340
===========
See accompanying notes to financial statements.
-7-
<PAGE>
BMC FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED MARCH 31, 2000 AND 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 10,413,311 $ 5,104,601
Net realized gain on investments 1,423,444 4,577,828
Change in unrealized appreciation 8,985,585 (5,357,102)
------------ ------------
Net increase in net assets resulting from operations 20,822,340 4,325,327
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gains on investment securities (1,423,444) (4,577,828)
Net investment income (5,433,817) (7,360,712)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 13,965,079 (7,613,213)
NET ASSETS AT BEGINNING OF YEAR 143,092,147 150,705,360
------------ ------------
NET ASSETS AT END OF YEAR (Including
undistributed net investment income: 2000 - $5,860,300;
1999 - $880,806) $157,057,226 $143,092,147
============ ============
</TABLE>
See accompanying notes to financial statements.
-8-
<PAGE>
BMC FUND, INC.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2000
- ------------------------------------------------------------------------------
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, government
agency bonds, mutual funds, common stocks, and investments in
limited partnerships.
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 wholly owned subsidiaries in the
statement of operations represent 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.
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. 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 March 31, 2000) 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.
-9-
<PAGE>
G. Recent Accounting Pronouncements - Statement of Financial Accounting
Standards No. 133, Accounting for Derivative Instruments and Hedging
Activities (SFAS 133), was issued in June 1998. SFAS 133 is
effective for the Company in the year beginning March 31, 2001. SFAS
133 requires that an entity recognize all derivatives as either
assets or liabilities in the balance sheet and measure those
instruments at fair value. Management is currently evaluating the
impact of the adoption of SFAS 133 and its effect on the Company's
financial statements.
2. LINE OF CREDIT
On August 24, 1999 the Company entered into an agreement with a bank for a
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 March 31, 2000, the Company had not used this line of credit.
3. ADVISORY BOARD AND REMUNERATION OF DIRECTORS
The Company does not have an advisory board. During the current year, the
Chairman was paid $18,800 and the President was paid $50,000. The
independent directors are paid an annual fee of $3,000 plus $1,000 for
each meeting attended. Each such independent director is paid an
additional $1,000 for each day of attending a committee meeting other than
on the date of a board meeting. In addition, all directors are reimbursed
for their reasonable expenses incurred in attending meetings.
**********
-10-
<PAGE>
BMC FUND, INC.
FINANCIAL HIGHLIGHTS
EACH OF THE TEN YEARS IN THE PERIOD ENDED MARCH 31, 2000
- ------------------------------------------------------------------------------
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 ten years in the period ended March 31, 2000. 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.
<TABLE>
<CAPTION>
PER SHARE OPERATING
PERFORMANCE 2000 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 29.01 $ 30.55 $ 29.33 $ 29.40 $ 28.23 $ 28.02
-------- -------- -------- -------- -------- --------
Net investment income 2.11 1.04 1.26 1.29 1.22 1.28
Net gains (losses) on investments 2.11 (.16) 1.95 .54 1.69 .46
-------- -------- -------- -------- -------- --------
Total from investment operations 4.22 .88 3.21 1.83 2.91 1.74
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income 1.10 1.49 1.14 1.16 1.05 1.20
Distributions from capital gains 0.29 .93 .85 .74 .69 .33
-------- -------- -------- -------- -------- --------
Total distributions 1.39 2.42 1.99 1.90 1.74 1.53
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 31.84 $ 29.01 $ 30.55 $ 29.33 $ 29.40 $ 28.23
======== ======== ======== ======== ======== ========
Per share market value, end of period(1) $ 26.00 $ 26.00 $ 26.00 N/A $ 26.00 $ 26.00
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(2) 16.23% 3.38% 12.33% 7.05% 11.17% 6.68%
======== ======== ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $157,057 $143,092 $150,705 $144,702 $145,036 $139,248
Ratio of expenses to average net assets(3) .40% .32% .27% .27% .29% .30%
Ratio of net investment income to
average net assets(3) 6.99% 3.50% 4.18% 4.39% 4.21% 4.55%
Portfolio turnover rate 94.21% 80.17% 26.98% 31.23% 21.75% 32.29%
<CAPTION>
PER SHARE OPERATING
PERFORMANCE 1994 1993 1992 1991
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 28.59 $ 27.77 $ 27.71 $ 27.69
-------- -------- -------- --------
Net investment income 1.30 1.42 1.62 1.76
Net gains (losses) on investments (.46) 1.14 .31 .30
-------- -------- -------- --------
Total from investment operations .84 2.56 1.93 2.06
-------- -------- -------- --------
Less distributions:
Dividends from net investment income 1.21 1.45 1.72 1.83
Distributions from capital gains .20 .29 .15 .21
-------- -------- -------- --------
Total distributions 1.41 1.74 1.87 2.04
-------- -------- -------- --------
Net asset value, end of period $ 28.02 $ 28.59 $ 27.77 $ 27.71
======== ======== ======== ========
Per share market value, end of period(1) N/A N/A $ 26.00 $ 26.00
======== ======== ======== ========
TOTAL INVESTMENT RETURN(2) 3.25% 9.83% 7.39% 7.93%
======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $138,230 $141,023 $136,994 $136,735
Ratio of expenses to average net assets(3) .30% .27% .29% .31%
Ratio of net investment income to
average net assets(3) 4.60% 5.02% 5.82% 6.36%
Portfolio turnover rate 22.48% 30.12% 32.74% 29.17%
</TABLE>
(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.
-11-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<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 AND
GOVERNMENT AGENCIES:
General Elec Cap Corp Mtn Be 6.330% 9/17/01 $ 200,000 $ 198,063
Times Mirror Co New 6.650% 10/15/01 200,000 197,750
Safeway Inc 5.875% 11/15/01 125,000 121,836
Hertz Corp 6.700% 6/15/02 125,000 122,539
Nabisco Inc 6.700% 6/15/02 450,000 438,891
Bank One Corp 6.400% 8/1/02 200,000 195,500
Raytheon Co 6.450% 8/15/02 125,000 121,289
Transamerica Fin Corp 7.250% 8/15/02 170,000 169,097
Wells Fargo & Co Del 6.500% 9/3/02 200,000 196,438
Occidental Pete Corp Del 6.750% 11/15/02 462,000 449,151
Boeing Co 6.350% 6/15/03 200,000 193,000
Carnival Corp 6.150% 10/1/03 158,000 152,233
Lehman Bros Hldgs Inc 7.250% 10/15/03 1,000,000 984,688
General Mtrs Accep Corp 5.750% 11/10/03 200,000 189,063
Ccb Finl Corp 6.750% 12/1/03 605,000 584,014
Eastman Chem Co 6.375% 1/15/04 1,000,000 948,438
Oakwood Homes Corp 7.875% 3/1/04 1,000,000 540,000
Conoco Inc 5.900% 4/15/04 175,000 166,469
Hertz Corp 7.000% 7/1/04 1,000,000 975,938
Hilton Hotels Corp 7.000% 7/15/04 430,000 402,319
Textron Inc 6.375% 7/15/04 200,000 192,313
Ford Motor Cr Co 6.700% 7/16/04 200,000 193,875
Albertsons Inc 6.550% 8/1/04 150,000 144,844
Caterpillar Finl Svcs Corp 6.875% 8/1/04 200,000 194,875
Duke Cap Corp 7.250% 10/1/04 200,000 197,563
Du Pont E I De Nemours & Co 6.750% 10/15/04 200,000 196,438
Electronic Data Sys Corp 6.850% 10/15/04 200,000 196,625
First Un Corp 7.700% 2/15/05 100,000 100,594
United Dominion Rlty Tr Mtnsbe 7.730% 4/5/05 1,000,000 948,438
Rite Aid Corp 7.625% 4/15/05 1,000,000 560,000
Federal Home Ln Bks Cons Bd 6.005% 4/29/05 500,000 474,063
National City Corp 7.200% 5/15/05 200,000 196,313
Ryder Sys Inc 6.500% 5/15/05 725,000 679,008
Worldcom Inc Ga 6.400% 8/15/05 200,000 190,938
Federal Home Ln Bks Cons Bd 6.000% 12/14/05 500,000 470,625
Paine Webber Group Inc 6.750% 2/1/06 800,000 754,250
Philip Morris Cos Inc 6.375% 2/1/06 1,000,000 881,250
Federal Rlty Invt Tr Mtn 6.990% 3/10/06 500,000 456,875
Keycorp New 7.500% 6/15/06 500,000 496,094
</TABLE>
-12-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<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 AND
GOVERNMENT AGENCIES
(Continued):
Avalon Bay Cmntys Inc 6.800% 7/15/06 $ 500,000 $ 469,219
First Natl Bk Boston Mass 7.375% 9/15/06 500,000 487,969
Federal Home Ln Bks Cons Bd 6.310% 10/27/06 1,000,000 945,000
Seagram Ltd 8.350% 11/15/06 590,000 610,466
United Dominion Realty Tr Inc 7.250% 1/15/07 500,000 466,250
Norfolk Southern Corp 7.350% 5/15/07 150,000 146,203
Federal Natl Mtg Assn 6.610% 4/23/08 2,000,000 1,893,750
Owens Corning 7.700% 5/1/08 660,000 612,769
Household Fin Corp 6.400% 6/17/08 200,000 183,438
Associates Corp North Amer 6.250% 11/1/08 200,000 181,938
Federal Home Ln Mtg Deb 6.250% 2/3/09 1,500,000 1,380,938
AT&T Corp 6.000% 3/15/09 200,000 180,757
Federal Home Ln Bks Cons Bd 6.680% 3/30/09 1,000,000 940,000
Federal Home Ln Bks Cons Bd 6.585% 4/27/09 500,000 467,656
Coca Cola Bottling Co Cons 6.375% 5/1/09 500,000 456,406
Federal Home Ln Mtg Deb 6.750% 5/5/09 500,000 471,250
Goodrich B F Co 6.600% 5/15/09 500,000 454,844
Federal Home Ln Bks 7.300% 6/30/09 500,000 482,188
Daimler Chrysler North Amer Hl 7.200% 9/1/09 200,000 195,125
Allstate Corp 7.200% 12/1/09 125,000 119,297
------------ ----------
Total Investments in
Corporate Bonds and Government Agencies $ 28,225,000 26,017,148 16.57%
============ ----------- -----
</TABLE>
-13-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Market of Net
Company Name Shares Cost Value Assets
<S> <C> <C> <C> <C>
MUTUAL FUNDS:
Baron Asset Fund Sh Ben Int 8,845 $ 300,655 $ 573,093
Blair William Mut Funds Income Shs 86,774 886,185 864,263
Central European Value Com 3,000 35,886 40,688
Cornercap Group Fds Growth Fund 35,049 376,332 310,888
Dreyfus Invt Grade Bd Sht-Trm Income 67,218 789,549 783,095
Emerging Mkts Floating Com 3,000 40,218 34,688
Europe Fund Inc Com 3,000 54,093 53,625
European Wt Fund Inc Com 14,500 231,324 251,938
H&Q Life Sciences Invs Sh Ben Int 5,000 63,163 145,000
Hotchkis & Wiley Funds Low Duration 49,850 500,000 487,039
Ivy Fund Emerging Growth A 11,123 318,223 614,124
Ivy Fund European Oppor. Fd A 21,463 448,357 532,491
Ivy Fund Glb Science & Tech A 14,930 261,488 893,552
Janus Invt Fund Flex Income Fund 32,543 320,538 302,003
Loomis Sayles Funds Bond Fund 35,094 406,259 421,484
Metropolitan West Funds Low Duration 52,823 536,834 527,705
Midcap Spdr Tr Unit Ser 1 5,300 323,628 483,625
Neuberger & Berman Inc Ltd Mat Bond Fund 54,410 531,218 508,187
Pilgrim Prime Rate Ner Sh Ben Int 87,000 825,438 701,438
Pimco Funds Pac Invt High Yield Fund 862 9,180 4,501
Richard T O Sector Rotation Fund Com 148,497 2,075,907 2,568,993
Spdr Tr Unit Ser 1 1,000 77,942 150,375
Strong Short Term Bond Fund Com 55,583 532,466 518,034
Van Kampen Sr Income Tr Com 16,000 150,945 130,000
Vanguard Bond Index Fund Short Trm Ptfl 53,021 528,104 515,366
Vanguard Fixed Income Secs Shr Trm Cp Ptfl 49,367 531,584 518,844
Warburg Pincus Fixed Sh Ben Int 51,916 529,543 505,139
------------- -----------
Total Investments in Mutual Funds $ 11,685,058 13,440,175 8.56%
============ ----------- ----
</TABLE>
-14-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS:
Aerospace/Defense 4,000 Boeing Co Com $ 203,200 $ 151,250
6,100 Raytheon Co Com 162,351 108,275
----------- -----------
365,551 259,525 0.17%
----------- ----------- -----
Aluminum 9,100 Alcoa Inc 314,077 639,275 0.41%
----------- ----------- -----
Apparel 7,400 Jones Apparel Group Com 55,234 234,025 0.15%
----------- ----------- -----
Auto Parts 2,096 Delphi Auto Sys Corp Com 24,014 33,536 0.02%
----------- ----------- -----
Auto & Truck 3,000 General Mtrs Corp Com 121,406 248,437 0.16%
----------- ----------- -----
Banking 10,248 Banco Santander Central Hisp Adr 99,839 109,531
3,500 Bankamerica Corp New Com 61,206 183,531
600 Capital One Finl Corp Com 24,425 28,763
7,950 Citigroup Inc Com 328,867 476,006
19,160 Mellon Financial Corp Com 203,452 570,010
1,600 State Str Corp Com 109,232 155,000
7,400 Wells Fargo & Co Del Com 228,535 301,550
----------- -----------
1,055,556 1,824,391 1.16%
----------- ----------- -----
Beverage - Alcoholic 2,200 Anheuser Busch Cos Inc Com 75,120 136,950 0.09%
----------- ----------- -----
Beverage - 12,000 Pepsico Inc Com 428,926 418,500 0.27%
Nonalcoholic ----------- ----------- -----
Biotech 250 Pe Corp Com Pe Bio Grp 29,140 24,125 0.02%
----------- ----------- -----
Building Materials 10,000 Fletcher Challenge Bldg Spon Adr 128,360 108,125
7,275 Home Depot Inc Com 290,871 469,238
4,672 Lowes Cos Inc Com 141,353 272,728
----------- -----------
560,584 850,091 0.54%
----------- ----------- -----
Broadcasting/ 5,100 At&T Corp Com Lib Grp A 168,402 302,494
Cable TV 3,400 Cbs Corp Com 159,868 192,525
2,275 Charter Communctns Del Cl A 44,165 32,596
2,900 Gannett Inc Com 203,752 204,088
----------- -----------
576,187 731,703 0.47%
----------- ----------- -----
Canadian Energy 12,900 Imperial Oil Ltd Com New 257,402 270,094 0.17%
----------- ----------- -----
Chemical - Basic 4,500 Monsanto Co Com 45,659 231,750 0.15%
----------- ----------- -----
</TABLE>
-15-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued):
Chemical - Diversified 4,600 Air Prods & Chems Inc Com $ 118,101 $ 130,813
2,400 Du Pont E I 172,248 127,050
----------- -----------
290,349 257,863 0.16%
----------- ----------- -----
Communication 300 Agilent Technologies Com 17,652 31,200
Products/Services 1,000 Antec Corp Com 43,350 44,812
350 E-Tek Dynamics 33,643 82,337
2,000 Jds Uniphase Corp Com 154,500 241,126
175 Sycamore Networks Inc Com 29,805 22,575
475 Williams Commnct Group Cl A 11,310 24,641
----------- -----------
290,260 446,691 0.28%
----------- ----------- -----
Computers & 300 3Com Corp Com 25,950 16,688
Peripherals 3,500 Dell Computer Corp Com 142,495 188,781
1,825 E M C Corp Mass Com 282,687 481,950
5,100 Hewlett Packard Co Com 161,799 677,663
6,000 Honeywell Intl Inc Com 155,680 316,125
6,800 Micron Technology Inc Com 311,727 856,800
3,325 Sun Microsystems Inc Com 176,353 311,564
----------- -----------
1,256,691 2,849,571 1.81%
----------- ----------- -----
Computer Software 650 Agile Software Cp Del Com 51,806 40,625
and Services 1,300 Aspect Dev Inc Com 34,775 83,688
12,900 Automatic Data Process Com 276,356 622,425
3,500 Ciber Inc Com 64,631 71,750
9,650 Cisco Sys Inc Com 307,451 746,066
1,075 Computer Sciences Corp Com 74,975 85,059
2,900 Concord Efs Inc Com 61,078 66,519
3,000 Electronic Data Sys Nw Com 158,115 192,562
2,675 International Bus Mach Com 322,643 315,650
6,625 Microsoft Corp Com 589,142 703,906
850 Open Mkt Inc Com 37,931 21,887
3,100 Oracle Corp Com 93,581 241,994
10,000 Overland Data Inc Com 69,483 140,625
1,375 Paychex Inc Com 44,062 72,016
400 Peregrine Systems Inc Com 28,650 26,825
425 Siebel Sys Inc Com 33,814 50,761
18,760 Solectron Corp Com 746,581 752,745
1,700 Symbol Technologies Com 81,543 139,931
4,000 Talk Com Inc Com 66,898 64,000
2,000 Trend Micro Inc Sponsored Adr 44,262 34,750
450 Veritas Software Co Com 32,175 58,950
----------- -----------
3,219,952 4,532,734 2.89%
----------- ----------- -----
</TABLE>
-16-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued):
Consumer Products 8,600 Kimberly Clark Corp Com $ 459,710 $ 482,137
4,000 Newell Rubbermaid Inc Com 195,871 99,250
2,525 Schering Plough Corp Com 114,367 93,741
1,000 Tandy Corp Com 36,537 50,750
----------- -----------
806,485 725,878 0.46%
----------- ----------- -----
Construction 5,375 Halliburton Co Com 214,412 221,047 0.14%
----------- ----------- -----
Diversified Companies 2,500 Capital Southwest Corp Com 156,334 136,875
1,825 Corning Inc Com 130,637 354,050
3,900 Gillette Co Com 142,312 146,981
2,600 Tyco Intl Ltd New Com 126,613 130,325
6,200 United Technologies Cp Com 231,348 391,763
3,000 Warner Lambert Co Com 188,968 293,062
----------- -----------
976,212 1,453,056 0.93%
----------- ----------- -----
Drugs 4,400 American Home Prods Cp Com 195,613 236,500
20,000 Amgen Inc Com 296,281 1,227,500
4,895 Cardinal Health Inc Com 240,247 224,558
700 Genentech Inc Com Spl 69,517 106,400
25,625 Johnson & Johnson Com 773,335 1,795,364
3,500 Merck & Co Inc Com 225,245 217,438
4,000 Novartis Ag Sponsored Adr 298,929 273,532
17,025 Pfizer Inc Com 287,447 622,476
3,500 Pharmaceutical Hldr Tr Dep Rcpt 286,496 298,813
2,400 Pharmacia & Upjohn Inc Com 117,444 142,800
----------- -----------
2,790,554 5,145,381 3.28%
----------- ----------- -----
Drugstores 8,888 CVS Corp Com 198,838 333,856
1,875 Walgreen Co Com 52,529 48,281
----------- -----------
251,367 382,137 0.24%
----------- ----------- -----
Electrical Equipment 700 Aes Corp Com 56,003 55,125
9,875 General Elec Co Com 662,783 1,536,797
----------- -----------
718,786 1,591,922 1.01%
----------- ----------- -----
Electric Utilities 4,300 Allegheny Energy Inc Com 128,097 119,056
1,100 Ameren Corp Com 40,561 34,032
2,000 Avista Corp Com 61,680 81,500
8,900 Chesapeake Utils Corp Com 142,100 150,744
300 Cinergy Corp Com 9,237 6,450
7,300 Cleco Corp Com 225,314 242,725
</TABLE>
-17-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued):
Electric Utilities 9,300 Cmp Group Inc Com $ 176,697 $ 270,863
4,500 Cms Energy Corp Com 151,416 81,563
5,000 Constellation Energy Group Inc 129,063 159,375
28,072 Dominion Res Inc Va Com 1,101,069 1,079,032
9,300 Dpl Inc Com 159,184 206,344
21,600 Duke Energy Corp Com 1,110,617 1,134,000
8,000 Eastern Utils Assoc Com 231,408 251,000
3,300 Firstenergy Corp Com 96,376 68,062
3,500 Fpl Group Inc Com 174,288 161,219
2,000 Gpu Inc Com 64,430 54,750
8,000 Idacorp Inc Com 238,973 278,000
4,500 Kansas City Pwr & Lt Co Com 109,586 130,500
2,500 Mdu Res Group Inc Com 57,095 51,875
5,000 New Century Energies Com 176,262 150,312
10,000 Nisource Inc 188,760 168,750
9,933 Northeast Utils Com 106,535 213,560
8,300 Northn Sts Pwr Minn Com 190,231 164,962
7,200 Oge Energy Corp Com 167,400 138,150
3,000 Reliant Energy Inc Com 85,405 70,687
7,700 Rochester Gas & Elec Com 199,920 163,625
25,048 Scana Corp Com 633,869 615,241
23,600 Southern Co Com 558,210 513,300
23,600 Teco Energy Inc Com 522,309 458,737
5,000 Texas Utils Co Com 204,700 148,437
2,200 Utilicorp Utd Inc Com 49,863 39,739
1,500 Vectren Corp Com 28,731 30,281
6,500 Wisconsin Energy Corp Com 178,567 129,594
----------- -----------
7,697,953 7,566,465 4.82%
----------- ----------- -----
Electronics 12,000 Altera Corp Com 339,837 1,071,000
1,800 Analog Devices Inc Com 90,167 144,900
500 Apa Optics Inc Com 23,029 14,688
900 General Mtrs Corp Cl H New 106,893 112,050
20,000 Gtr Group Inc Com 54,120 41,250
20,000 Maxim Integrated Prods Com 400,142 1,421,250
8,983 Molex Inc Com 145,004 527,751
2,000 Pioneer Std Electrs Com 30,680 31,500
11,000 Sci Sys Inc Com 207,013 591,250
1,125 Teradyne Inc Com 78,747 92,250
----------- -----------
1,475,632 4,047,889 2.58%
----------- ----------- -----
</TABLE>
-18-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued):
Entertainment 7,000 Bally Tot Fitness Hldg Com $ 114,187 $ 171,500
5,000 Carnival Corp Com 149,213 124,062
7,750 Disney Walt Co Com 180,413 319,688
20,000 Fox Entmt Group Inc Cl A 521,086 598,750
1,025 Time Warner Inc Com 75,645 102,500
2,000 Wms Inds Inc Com 23,075 19,750
----------- -----------
1,063,619 1,336,250 0.85%
----------- ----------- -----
Environmental 4,000 Waste Industries Inc Com 59,771 44,000 0.03%
----------- ----------- -----
Financial Services 2,600 Associates First Cap Cl A 93,133 55,575
2,000 Cit Group Inc Cl A 40,930 39,000
3,000 Countrywide Cr Ind Del Com 91,357 81,750
12,500 Espirito Santo Finl Sa Adr 216,363 234,375
2,575 Federal Home Ln Mtg Cp Com 127,480 113,783
3,100 Franklin Res Inc Com 115,150 103,656
2,875 Mbna Corp Com 76,723 73,313
----------- -----------
761,136 701,452 0.45%
----------- ----------- -----
Food Processing 6,150 Nestle S A Sponsored Adr 201,834 551,102 0.35%
----------- ----------- -----
Food Wholesalers 11,000 Sysco Corp Com 168,834 397,375 0.25%
----------- ----------- -----
Foreign Utilities 14,918 Enersis S A Sponsored Adr 307,530 303,022
9,828 Scottish Pwr Plc Spon Adr Final 316,808 311,425
----------- -----------
624,338 614,447 0.39%
----------- ----------- -----
Foreign 2,500 Bce Inc Com 119,006 313,593
Telecommunications 1,600 Ericsson L M Tel Co Adr Cl B Sek10 9,620 150,100
7,700 Telecom Cp New Zealand Adr 282,988 282,494
2,494 Telefonica S A Sponsored Adr 102,422 185,482
----------- -----------
514,036 931,669 0.59%
----------- ----------- -----
Gold/Silver Mining 4,620 Franco Nev Mng Ltd Wt Exp 071384 81,622 48,699
10,000 Pan American Silver Cp Com 55,639 38,130
6,900 Stillwater Mng Co Com 100,310 276,000
----------- -----------
237,571 362,829 0.23%
----------- ----------- -----
Grocery 20,600 Kroger Co Com 156,757 361,787
2,700 Safeway Inc Com New 118,585 122,175
----------- -----------
275,342 483,962 0.31%
----------- ----------- -----
</TABLE>
-19-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued):
Hotel/Gaming 4,977 International Game Tec Com $ 92,917 $ 107,939
25,000 Mirage Resorts Inc Com 416,363 484,375
5,000 Park Pl Entmt Corp Com 52,920 57,812
----------- -----------
562,200 650,126 0.41%
----------- ----------- -----
Household Products 7,000 Colgate Palmolive Co Com 89,886 394,625 0.25%
----------- ----------- -----
Industrial Services 2,000 Praxair Inc Com 98,665 83,250 0.05%
----------- ----------- -----
Insurance 8,271 American Intl Group Com 391,213 905,674
1,000 Axa Finl Inc Com 30,788 35,875
1,000 Blanch E W Hldgs Inc Com 55,865 20,000
7,450 Ing Groep N V Sponsored Adr 134,201 409,750
3,250 Marsh & McLennan Cos Com 260,634 358,516
----------- -----------
872,701 1,729,815 1.10%
----------- ----------- -----
Internet Service
Providers 3,350 America Online Inc Del Com 237,089 225,916 0.14%
----------- ----------- -----
Internet Commerce 800 Amazon Com Inc Com 57,843 53,600 0.03%
----------- ----------- -----
Investment Company - 15,700 Allied Cap Corp Com 292,235 273,769
Domestic 5,000 Sector Spdr Tr Sbi Int-Finl 112,867 121,328
3,000 Telecom Hldrs Tr Depositry Rcpt 245,030 273,562
----------- -----------
650,132 668,659 0.43%
----------- ----------- -----
Investment Company - 19,000 Credit Suisse Asst Mgm Com 144,166 115,188
Income 4,000 Sector Spdr Tr Sbi Int-Energy 102,324 117,250
----------- -----------
246,490 232,438 0.15%
----------- ----------- -----
Investment Services 825 Goldman Sachs Group Com 67,339 86,831 0.06%
----------- ----------- -----
Limited Partnerships 5,300 Northern Border Partnr Unit Lp 164,012 143,762 0.09%
----------- ----------- -----
Machinery 1,700 Applied Matls Inc Com 77,689 160,225
8,000 Dover Corp Com 87,145 383,000
----------- -----------
164,834 543,225 0.35%
----------- ----------- -----
Manufacturing 5,000 Paxar Corp Com 47,607 48,125 0.03%
----------- ----------- -----
Manufactured Housing 6,000 Clayton Homes Inc Com 70,653 60,750 0.04%
& Rec. Vehicles ----------- ----------- -----
</TABLE>
-20-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued):
Medical Services 4,900 Abbott Labs Com $ 206,204 $ 172,419
16,000 Laser Vision Ctrs Inc Com 219,614 111,000
----------- -----------
425,818 283,419 0.18%
----------- ----------- -----
Medical Supplies 6,000 Baxter Intl Inc Com 228,728 376,125
8,500 Bristol Myers Squibb Com 589,368 493,000
1,675 Guidant Corp Com 90,001 98,616
1,425 Medtronic Inc Com 49,388 73,298
----------- -----------
957,485 1,041,039 0.66%
----------- ----------- -----
Mobile Communications 200 Nextel Communications Cl A 27,937 29,650 0.02%
----------- ----------- -----
Natural Gas - 1,000 Columbia Energy Group Com 58,310 59,250
Distributing 4,890 Dynegy Inc Com 170,927 306,790
12,500 Eastern Amer Nat Gas Spers Rct Unit 177,250 151,563
8,500 Indiana Energy Inc Com 178,580 165,750
5,000 Kinder Morgan Inc Kans Com 64,194 172,500
6,200 Mcn Energy Group Inc Com 100,610 155,000
4,000 Piedmont Nat Gas Inc Com 137,160 104,250
5,500 Providence Energy Corp Com 102,689 208,656
4,700 South Jersey Inds Inc Com 103,982 132,481
3,000 Southwest Gas Corp Com 81,683 57,188
5,000 Transcanada Pipelines Com 57,607 37,812
8,200 Westcoast Energy Inc Com 162,740 139,400
----------- -----------
1,395,732 1,690,640 1.08%
----------- ----------- -----
Natural Gas - 3,600 El Paso Energy Cp Del Com 135,349 145,350
Diversified 17,125 Enron Corp Com 566,095 1,282,235
1,100 National Fuel Gas N J Com 48,277 49,019
5,000 Nicor Inc Com 173,403 164,687
100 Questar Corp Com 1,807 1,856
5,000 Rgc Resources Inc 102,700 98,750
1,300 Williams Cos Inc Del Com 54,852 57,119
----------- -----------
1,082,483 1,799,016 1.15%
----------- ----------- -----
Office Equipment & Sales 23,000 Office Depot Inc Com 441,251 265,938 0.17%
----------- ----------- -----
Oilfield Services & 1,000 Amerada Hess Corp Com 58,163 64,625
Equipment 2,000 Apache Corp Com 77,615 99,500
6,000 Petroleum Geo-Svcs A/S Spon Adr 107,563 103,878
7,000 R & B Falcon Corp 67,548 137,813
5,400 Schlumberger Ltd Com 283,602 413,100
1,000 Seacor Smit Inc Com 51,475 60,375
9,467 Transocean Sedco Forex Inc Com 286,565 485,775
----------- -----------
932,531 1,365,066 0.87%
----------- ----------- -----
</TABLE>
-21-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued):
Paper & Forest Products 12,000 Crown Pac Partners L P Unit Lp $ 223,103 $ 258,000
6,000 Plum Creek Timber Depositary Unt 164,422 147,750
----------- -----------
387,525 405,750 0.26%
----------- ----------- -----
Petroleum - Integrated 9,300 Atlantic Richfield Co Com 665,339 790,500
3,100 Bp Amoco P L C Sponsored Adr 157,621 164,495
3,700 Buckeye Partners L P Unit Ltd Partn 98,973 96,200
4,700 Chevron Corporation Com 435,721 434,456
4,000 Coastal Corp Com 147,434 184,000
6,700 Equitable Res Inc Com 194,406 300,244
21,312 Exxon Mobil Corp Com 1,028,790 1,661,004
5,500 Occidental Pete Cp Del Com 101,283 114,125
2,500 Petroleum & Res Corp Com 88,208 90,000
2,200 Phillips Pete Co Com 89,180 101,750
10,500 Repsol S A Sponsored Adr 119,232 223,781
9,425 Royal Dutch Pete Co Ny Reg Gld1.25 506,585 544,883
8,074 Texaco Inc Com 411,841 433,978
6,500 Unocal Corp Com 265,320 193,375
6,000 Ypf Sociedad Anonima Spon Adr Cl D 158,884 213,000
----------- -----------
4,468,817 5,545,791 3.53%
----------- ----------- -----
Petroleum - Producing 6,100 Anadarko Pete Corp Com 208,593 235,994
3,025 Burlington Res Inc Com 104,871 111,925
6,500 Kerr Mcgee Corp Com 283,886 375,375
4,000 Teppco Partners L P Ut Ltd Partner 104,160 89,000
----------- -----------
701,510 812,294 0.52%
----------- ----------- -----
Petroleum - Refining 500 Tosco Corp Com New 13,682 15,312 0.01%
----------- ----------- -----
Propane Gas 5,000 Suburban Propane Partners Lp 103,450 98,438 0.06%
----------- ----------- -----
Radio 800 Amfm Inc Com 60,948 49,700 0.03%
----------- ----------- -----
Railroad 6,600 Norfolk Southern Corp Com 179,579 94,050 0.06%
----------- ----------- -----
R.E.I.T.s 5,000 Amb Property Corp Com 97,128 107,500
8,600 Archstone Cmntys Tr Sh Ben Int 171,781 171,462
8,900 Boston Properties Inc Com 301,520 283,131
5,700 Bre Properties Inc Cl A 128,478 147,131
4,300 Chelsea Gca Realty Inc Com 131,585 124,700
12,500 Choice Hotels Intl Inc Com 152,049 180,469
6,700 Colonial Pptys Tr Com Sh Ben Int 165,020 159,125
12,900 Crescent Real Estate Com 282,697 225,750
</TABLE>
-22-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued):
R.E.I.T.s 4,000 Equity Resident Pptys Sh Ben Int $ 165,220 $ 160,750
(Continued) 6,000 Federal Realty Invt Tr Sh Ben Int New 126,615 115,875
18,400 Felcor Lodging Tr Inc Com 353,449 328,900
3,900 Health Care Ppty Invs Com 100,525 99,206
15,000 Hrpt Properties Trust 129,052 130,313
7,300 Kilroy Rlty Corp Com 152,564 153,756
3,400 Kimco Realty Corp Com 124,449 127,500
10,000 Lasalle Hotel Pptys Com Sh Ben Int 143,396 125,000
4,000 Liberty Ppty Tr Sh Ben Int 97,411 95,752
8,800 Mgi Pptys Inc Com - 45,650
14,700 Mid-Atlantic Rlty Tr Sh Ben Int 148,807 135,975
11,900 New Plan Excel Rlty Tr 219,621 163,625
9,000 Pennsylvania Rl Est Tr Sh Ben Int 176,891 146,250
1,450 Pinnacle Hldgs Inc Com 79,481 77,937
8,300 Post Pptys Inc Com 321,213 334,594
1,000 Prison Rlty Tr Com 9,686 3,063
4,800 Simon Ppty Group New Com 130,092 111,900
3,800 Spieker Pptys Inc Com 130,653 169,100
11,730 Starwood Finl Inc Com 285,533 206,741
10,100 Tanger Factory Outlet Com 237,247 193,794
17,000 United Dominion Rltytr Com 177,930 171,071
3,600 Vornado Rlty Tr Sh Ben Int 124,344 120,600
----------- -----------
4,864,437 4,616,620 2.09%
----------- ----------- -----
Restaurants 11,000 McDonalds Corp Com 396,873 411,125 0.26%
----------- ----------- -----
Retail - Special Lines 1,475 Circuit City Store Inc Circt City Grp 62,789 89,791 0.06%
----------- ----------- -----
Retail Stores 6,000 Costco Companies Inc Com 54,625 315,375
925 Kohls Corp Com 61,992 94,812
1,700 Target Corp Com 106,130 127,075
8,500 Wal-Mart Stores Inc Com 374,685 480,250
----------- -----------
597,432 1,017,512 0.65%
----------- ----------- -----
Securities Brokerage 1,700 Merrill Lynch & Co Inc Com 110,109 178,500 0.11%
------- ------- -----
Semiconductors 2,000 Advanced Micro Devices Com 62,555 114,125
600 Broadcom Corp Cl A 45,966 145,725
9,250 Intel Corp Com 534,281 1,220,421
4,300 Motorola Inc Com 288,302 627,800
1,125 National Semiconductor Com 55,544 68,344
24,000 Novellus Sys Inc Com 410,386 1,347,000
2,625 Texas Instrs Inc Com 199,405 420,000
1,075 Vitesse Semiconductor Com 43,398 103,469
16,000 Xilinx Inc Com 152,875 1,325,000
----------- -----------
1,792,712 5,371,884 3.42%
----------- ----------- -----
</TABLE>
-23-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Shares Market of Net
Industries Held Company Name Cost Value Assets
<S> <C> <C> <C> <C> <C>
COMMON STOCKS
(Continued):
Services 27,000 Cendant Corp Com $ 317,735 $ 499,500
4,000 Cryolife Inc Com 63,630 72,000
6,500 Robert Half Intl Inc Com 169,451 308,347
4,000 Sovran Self Storage Com 100,910 81,000
20,000 Usec Inc Com 81,620 95,000
----------- -----------
733,346 1,055,847 0.67%
----------- ----------- -----
Telecommunications 2,500 American Tower Corp Cl A 55,050 123,438
Equipment 500 Ciena Corp Com 11,425 63,063
2,000 Commscope Inc Com 71,805 91,375
11,928 Lucent Technologies Com 359,715 730,590
2,500 Metricom Inc Com 68,208 115,938
575 Nortel Networks Corp Com 68,359 72,522
20,000 Scientific Atlanta Inc Com 164,737 1,265,000
----------- -----------
799,299 2,461,924 1.57%
----------- ----------- -----
Telecommunications 7,434 Alltel Corp Com 378,858 470,200
Services 9,425 At&T Corp Com 383,255 530,745
10,200 Bell Atlantic Corp Com 597,991 623,475
7,400 Bellsouth Corp Com 329,423 346,875
1,500 Broadwing Inc Com 41,370 55,781
8,500 Centurytel Inc Com 295,358 315,563
10,400 Global Crossing Ltd Com 323,129 425,755
6,000 Globalstar Telecommun Com 114,186 83,250
7,900 Gte Corp Com 379,316 560,900
8,250 Mci Worldcom Inc Com 398,342 373,828
3,700 Mediaone Group Inc Com 265,260 299,700
20,300 Sbc Communications Inc Com 749,097 855,138
12,000 Sprint Corp Com 367,348 759,000
6,000 Sprint Corp Pcs Com Ser 1 92,517 393,000
1,500 United States Cellular Com 94,921 106,500
1,000 Zi Corp Com 26,561 16,125
----------- -----------
4,836,932 6,215,835 3.95%
----------- ----------- -----
Timber 1,900 Weyerhaeuser Co Com 124,844 108,300 0.07%
----------- ----------- -----
Toiletries & Cosmetics 1,400 Procter & Gamble Co Com 129,003 79,100 0.05%
----------- ----------- -----
Water Utility 14,400 American Wtr Wks Inc Com 366,760 342,000
5,000 Philadelphia Subn Corp Com 114,458 90,625
6,500 Southwest Wtr Co Com 100,071 69,875
5,000 United Wtr Res Inc Com 105,138 173,750
----------- -----------
686,427 676,250 0.43%
----------- ----------- -----
TOTAL INVESTMENTS IN COMMON STOCKS $57,446,392 $81,246,032 51.73%
=========== ----------- ------
</TABLE>
-24-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Percent of
Company Name Held Cost Value Net Assets
OTHER INVESTMENTS:
<S> <C> <C> <C> <C>
Preferred Stock:
Abn Amro Cap Fdg Tr Ii Pfd G-T 7.125% 9,000 $ 223,673 $ 181,125 0.12%
------------ ------------ ----
Limited Partnerships:
Bay Harbour 90-1, Lp 750,000 874,738
Global Tech Investors Fund Llc (Bessemer) 4,000,000 4,813,942
Jmg Capital Partners Lp 1,000,000 1,014,089
Mariner Partners, Lp 750,000 867,111
Rose Glen Capital Partners I, Lp 750,000 1,358,667
Safe Harbor Fund, Lp 1,500,000 1,924,871
Stark Investments Lp 1,000,000 1,313,431
Ulq Hedge Fund Ltd Partnership 1,025,002 1,494,836
Walnut Investment Partners Lp 120,000 120,000
Wp Strategic Lp 6,567 3,639
------------ ------------
10,901,569 13,785,324 8.78%
------------ ------------ ----
Other Investments:
Serves Certificates-Bank Of America 500,000 387,000 500,000 0.32%
------------ ------------ ----
Venture Capital:
Buildnet Inc Series C Pfd 500,000 500,000 500,000
Golfsouth 1994 Lp 400,000 380,000 200,000
Piedmont Venture Partners 185,000 185,000 185,000
Piedmont Venture Partners Ii Lp 170,758 170,758 170,758
------------ ------------
1,235,758 1,055,758 0.67%
------------ ------------ ----
TOTAL OTHER INVESTMENTS $ 12,747,999 $ 15,522,206 9.88%
============ ------------ ----
</TABLE>
-25-
<PAGE>
BMC FUND, INC. Schedule I
INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent
Market of Net
Industries Company Name Cost Value Assets
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS Evergreen Money
Market Fund $ 3,527,845 $ 3,527,845 2.25%
============ ------------ -----
TOTAL INVESTMENTS -
MARKET VALUE $139,753,406 88.98%
============ =====
Aggregate gross unrealized appreciation
of security values $ 31,714,379
Aggregate gross unrealized depreciation
of security values (5,735,246)
------------
Net appreciation of security values 25,979,133
Tax cost of securities 113,774,273
------------
TOTAL MARKET VALUE OF SECURITIES $139,753,406
============
</TABLE>
-26-
<PAGE>
BMC FUND, INC. Schedule II
INVESTMENTS - OTHER THAN SECURITIES
MARCH 31, 2000
- --------------------------------------------------------------------------------
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 $ 3,179
Tax cost of investment land 146,821
--------
Market value of investment land $150,000
========
(a) Non-income producing property.
-27-
<PAGE>
BMC FUND, INC. Schedule III
INVESTMENT IN AFFILIATES
MARCH 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of Amount of Equity
Shares Held At In Net Profit Amount of Value at
March 31, And Loss for the Dividends March 31,
Issuer 2000 Period (1) 2000
<S> <C> <C> <C> <C>
Broyhill Industries Inc. - wholly owned
subsidiary 1,000 $ 4,311 $ - $ 540,984
P. B. Realty, Inc. - wholly owned
subsidiary 1,000 5,881,390 - 15,334,431
---------- --- -----------
TOTAL $5,885,701 $ - $15,875,415
========== === ===========
</TABLE>
(1) 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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