Form N-CSRS BMC FUND INC For: Apr 30

 

UNITED STATES

SECURITES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-CSRS

 

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-03150

 

BMC FUND, INC.

 (Exact name of registrant as specified in charter)

 

800 HICKORY BLVD. SW

LENOIR, NC 28645

(Address of principal executive offices) (Zip code)

 

ALAN DEAL

BMC FUND, INC.

800 HICKORY BLVD. SW

LENOIR, NC 28645

(Name and address of agent for service)

 

Registrant's telephone number including area code: 828-758-6100

 

Date of fiscal year end: October 31, 2026

 

Date of reporting period: April 30, 2026

 

 

 

Item 1. Report to Stockholders.

 

BMC FUND, INC.

 

FINANCIAL STATEMENTS AND

 

ADDITIONAL INFORMATION

 

(UNAUDITED)

 

Six Months Ended April 30, 2026

 

 

BMC FUND, INC.

 

TABLE OF CONTENTS

 

	Page No.
Letter to Shareholders	1
Graphic Presentation of Portfolio Holdings and Sector Diversification	2
Schedule of Investments	4
Statement of Assets and Liabilities	12
Statement of Operations	13
Statement of Changes In Net Assets	14
Statement of Cash Flows	15
Financial Highlights	16
Notes to Financial Statements	17
Directors and Officers	26
Additional Information	28

 

 

BMC FUND, INC.

LETTER TO SHAREHOLDERS

Six Months Ended April 30, 2026 (Unaudited)

 

TO OUR SHAREHOLDERS:

 

We are happy to present to you our semi-annual report (unaudited) for the six months ended April 30, 2026, which we believe contains complete and pertinent financial information.

 

BMC Fund, Inc. (the “Fund”) became a Regulated Investment Company (“RIC”) on April 1, 1981. During the six months ended April 30, 2026, the Fund paid the following dividends per share:

 

December 10, 2025 to shareholders of record November 25, 2025		$	.20
March 10, 2026 to shareholders of record February 25, 2026			.20
Total		$	.40

 

The attached Schedule of Investments is a listing of the entire Fund’s diversified securities at April 30, 2026, with a total market value of $37,470,711.

 

	M. Hunt Broyhill
	Principal Executive Officer

 

 

BMC FUND, INC.

GRAPHIC PRESENTATION OF PORTFOLIO HOLDINGS AND SECTOR DIVERSIFICATION

Six Months Ended April 30, 2026 (Unaudited)

 

 

 

BMC FUND, INC.

GRAPHIC PRESENTATION OF PORTFOLIO HOLDINGS AND SECTOR DIVERSIFICATION

Six Months Ended April 30, 2026 (Unaudited)

 

	Policy Index     Actual Performance

 

This chart assumes an initial gross investment of $10,000 made on 10/31/2015.

 

*

Broad Base Index used is SPDR Dow Jones Industrial Average ETF Trust

 

*

Policy Index is calculated as 50% MSCI ACWI, 25% Barclays Aggregate Bond Index, 20% HFRI Hedge Fund Index, 5% Cash

 

Past Performance does not guarantee future results. Performance will fluctuate with changes in market conditions. Current performance may be lower or higher than the performance data shown. Performance information does not reflect the deduction of taxes that shareholders would pay on Fund distributions or the sale of the Fund shares. An investment in the fund involves risk, including loss of principal.

 

Past Performance at a glance (unaudited)

 

Average annual total returns for the periods ended 10/31/2025

 

Market Value		1 year				5 years				10 years
BMC Investments			4.0	%			8.7	%			6.7	%
Policy Index			16.7	%			15.1	%			9.9	%
Broad Base Index			9.64	%			12.02	%			16.3	%

 

BMC Fund, Inc. pays management fees to BAM, LLC.

 

 

BMC FUND, INC.

SCHEDULE OF INVESTMENTS

April 30, 2026

 

																						Percent
		Interest		Base Rate				Maturity		Face								Market				of Net
Debt Issuer		Rate		Floor				Date		Amount				Cost				Value				Assets
FIXED INCOME:
CORPORATE BONDS:
BALL CORP		5.500%			5.500	%		9/15/2033		$	250,000			$	251,412.00			$	250,665.00
CANADIAN PACIFIC RAILWAY		2.450%			2.450	%		12/2/2031			250,000				226,466.00				223,168.00
FIRST CITIZENS		SOFR +423			5.800	%		12/31/2049			250,000				252,323.00				251,560.00
FPL GROUP CAP INC		SOFR +233			6.350	%		10/1/2066			586,000				563,211				520,778
PP&L CAP FUNDING FLT RATE		SOFR +293			5.051	%		3/30/2067			250,000				250,000				246,137
THERMO FISHER SCIENTIFIC		4.473%			4.473	%		10/7/2032			250,000				251,212				247,130
TRANSCANADA PIPELINES LTD		SOFR +247			6.350	%		5/15/2067			250,000				199,586				222,630
											2,086,000				1,994,210				1,962,068				5.21	%
GOVERNMENT BONDS:
US TREASURY NOTE					4.625	%		10/15/2026			500,000				499,486				502,145
US TREASURY NOTE					4.875	%		10/31/2028			500,000				501,049				511,385
											1,000,000				1,000,535				1,013,530				2.69	%
TOTAL INVESTMENTS IN FIXED INCOME										$	3,086,000			$	2,994,745			$	2,975,598				7.91	%

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)

April 30, 2026

 

														Percent
		Shares								Market				of Net
Company Name		Held				Cost				Value				Assets
MUTUAL FUNDS:
ISHARES 1-3 YEAR TREASURY BOND ETF			1			$	108			$	82
BLACKROCK TAXABLE MUNICIPAL BOND TRUST			67,658				1,097,844				1,097,413
GMO U.S. QUALITY ETF			7,900				301,172				314,736
STATE STREET SPDR S&P 500 EFT TRUST			100				68,416				71,866
GMO INTERNATIONAL QUALITY ETF			11,200				298,505				292,320
ISHARES TR MSCI EMERG MKTS			5,100				300,463				326,349
PZENA EMERGING MARKETS VALUE FUND INSTITUTIONAL CLASS			27,010				273,570				465,111
ISHARES INTL SELECT DIV			7,000				298,154				310,730
VANECK GOLD MINERS ETF			571				16,168				50,413
INVESCO QQQ TRUST			200				125,464				133,548
VANGUARD DIVIDEND APPRECIATION ETF			1,400				315,198				320,194
TOTAL INVESTMENTS IN MUTUAL FUNDS						$	3,095,062			$	3,382,762				8.99	%

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)

April 30, 2026

 

		Acquisition								Market				Percent of
Company Name		Date				Cost				Value				Net Assets
OTHER INVESTMENTS:
LIMITED PARTNERSHIPS (NOTE 2):
BAM CREDIT OPPORTUNITIES FUND		12/8/2020		1, 2, 5, 6		$	458,155			$	731,508
ELLIOTT ASSOCIATES, L.P. CL B		11/3/2008		1, 2			846,415				6,525,643
GRAHAM INSTITUTIONAL PARTNERS, L.P.		7/1/2016		1, 2			1,365,123				2,281,066
GREENLIGHT MASTERS QUALIFIED, L.P.		12/1/2010		1, 2			350,000				3,713,558
MUDRICK DISTRESSED OPPORTUNITY DRAWDOWN FUND II, L.P.		3/1/2019		1, 2			1,021,067				2,108,817
OLD WELL SPECIAL OPPORTUNITIES FUND II, LLC		11/4/2021		1, 2			113,322				56,747
SJC ONSHORE DIRECT LENDING FUND IV - 5 YEAR, L.P.		10/1/2020		1, 7			1,528,646				1,493,902
TOTAL LIMITED PARTNERSHIPS							5,682,728				16,911,241				44.94	%
TOTAL OTHER INVESTMENTS						$	5,682,728			$	16,911,241				44.94	%

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)

April 30, 2026

 

																Percent
Sectors and		Shares										Market				of Net
Industries		Held				Company Name		Cost				Value				Assets
COMMON STOCKS:
COMMUNICATION SERVICES
Media and Entertainment			390			ALPHABET INC CAP STK CL C		$	25,142			$	148,957
									25,142				148,957				0.40	%
TOTAL COMMUNICATION SERVICES									25,142				148,957				0.40	%
CONSUMER DISCRETIONARY
Automobiles & Components			19,500			VALVOLINE, INC.			682,367				647,985
									682,367				647,985				1.72	%
Specialty Retial			2,650			LVMH Moet Hennessy-Louis Vuitton, Societe			315,005				280,642
									315,005				280,642				0.75	%
TOTAL CONSUMER DISCRETIONARY									997,372				928,627				2.47	%
CONSUMER STAPLES
Consumer Durables & Apparel
			1,850			FLOOR & DÉCOR HOLDINGS, INC.			105,317				89,540
			5,200			SMURFIT WESTROCK PLC			209,060				199,628
									314,377				289,168
Discount Stores			4,100			DOLLAR TREE INC COM STK			288,969				398,151
									288,969				398,151				1.06	%
Specialty Retail			125			AMAZON.COM, INC.			24,179				33,132
									24,179				33,132				0.09	%
Food & Staples Retailing			228			WAL-MART STORES INC COM			10,261				30,080
									10,261				30,080				0.08	%
Food, Beverage & Tobacco			4,319			COCA COLA FEMSA S A B SPON			325,234				438,724
			3,100			NESTLE S A SPONSORED ADR			300,009				313,350
			3,060			PHILIP MORRIS INTL COM			285,403				505,114
									910,646				1,257,188				3.34	%
TOTAL CONSUMER STAPLES									1,548,432				2,007,719				5.34	%
ENERGY
Energy			250			CHENIERE ENERGY, INC.			42,466				68,738
			1,200			CVR ENERGY, INC.			43,491				39,768
			1,500			FREEHOLD ROYALTIES, LTD			19,007				19,785
			2,000			FLEX LNG LTD.			62,848				64,860
			473			SUNOCO INC COM			13,246				32,944
									181,058				226,095				0.60	%
Pipelines			630			ENBRIDGE INC			18,339				34,915
			329			ENERGY TRANSFER OPERATING, L.P.			3,369				6,642
									21,708				41,557				0.11	%
TOTAL ENERGY									202,766				267,652				0.71	%

 

 

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)

April 30, 2026

 

																Percent
Sectors and		Shares										Market				of Net
Industries		Held				Company Name		Cost				Value				Assets
FINANCIALS
Banks			263			BANK OF AMERICA CORP COM			6,063				14,060
									6,063				14,060				0.04	%
Diversified Financials			1,312			ALLIANCE BERNSTEIN HLDG UN			54,061				52,349
			179	2		BERKSHIRE HATHAWAY INC CL B			36,098				84,774
			456			BLACKSTONE GROUP LP COM			14,682				57,264
			470			CARLYLE GROUP LP COM			12,271				23,533
			136			CME GROUP			33,407				39,143
			918			GOLUB CAPITAL BDC INC COM			-				12,577
			176			INTERNCONTINENTAL EXCHANGE COM			26,326				27,824
			300			MORGAN STANLEY COM NEW			31,210				57,177
									208,055				354,641				0.94	%
Insurance			79			AON PLC SHS CL A			6,409				24,620
			263			OLD REP INTL CORP COM			4,433				10,507
			129			TRAVELERS COMPANIES COM			10,711				39,363
			526			ZURICH INS GROUP LTD SPONS ARD			6,984				18,288
									28,537				92,778				0.25	%
Financial			500			NXG NEXTGEN INFRASTRUTURE INC. FD			24,166				28,645
									24,166				28,645				0.08	%
TOTAL FINANCIALS									266,821				490,124				1.30	%
HEALTH CARE
Health Care Equipment & Services			150			LABORATORY CORP AMER HLDGS			34,292				38,520
			206			QUEST DIAGNOSTICS INC COM			24,052				40,005
			40,100			SOTERA HEALTH COMPANY			626,878				623,956
			24			STRYKER CORP			4,486				7,563
									689,708				710,044				1.89	%
Pharmaceuticals & Biotechnology			180			ABBVIE INC			14,612				38,038
			162			ASTRAZENECA PLC SPONSORED			8,115				30,354
			1,870			CHARLES RIVER LABORATORIES			224,863				312,234
			85			ELI LILLY & CO COM			3,744				79,441
			4,015	2		IQVIA HOLDINGS INC COM			613,758				635,855
			400			MERCK & CO INC COM			35,967				43,672
									901,059				1,139,594				3.03	%
TOTAL HEALTH CARE									1,590,767				1,849,638				4.92	%
INDUSTRIALS
Capital Goods			208			ABB LTD SPONSORED ADR			5,057				20,863
			750			THERMO FISHER SCIENTIFIC			335,701				359,220
									340,758				380,083				1.01	%
Commercial Services & Supplies			18,900			RENTOKIL INITIAL PLC			523,260				640,143
			110			WASTE MGMT INC DEL COM			20,497				25,580
									543,757				665,723				1.77	%
Industrials			1,550			HONEYWELL INTL INC COM			299,009				332,212
			4,700			MASCO CORPORATION			328,472				337,554
			3,400			THE MIDDLEBY CORPORATION			453,385				477,224
									1,080,866				1,146,990				3.05	%
TOTAL INDUSTRIALS									1,965,381				2,192,796				5.83	%

 

 

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)

April 30, 2026

 

																Percent
Sectors and		Shares										Market				of Net
Industries		Held				Company Name		Cost				Value				Assets
INFORMATION TECHNOLOGY
Hardware & Equipment			535			CISCO SYSTEMS INC			20,733				48,953
			548			CORNING INC COM			33,198				90,003
									53,931				138,956				0.37	%
Software & Services			625			MICROSOFT CORP COM			244,731				254,862
			138			ORACLE CORP COM			9,119				22,272
			1,400			UBER TECHNOLOGIES, INC			92,815				104,454
									346,665				381,588				1.01	%
Technology Hardware & Equipment			329			APPLE INC COM			23,108				89,274
			1,270			INTEL CORP COM			52,404				119,990
			102			NETAPP INC COM			5,350				11,298
			140			SEAGATE TECHNOLOGY SHS			5,333				94,310
									86,195				314,872				0.84	%
Technology			850			ACCENTURE PLC			208,640				151,904
			220			CACI INTL INC CLA			105,331				114,299
									313,971				266,203				0.71	%
TOTAL INFORMATION TECHNOLOGY									800,762				1,101,619				2.93	%
REAL ESTATE
Real Estate			101			DIGITAL RLTY TR INC COM			11,872				20,295
			524			HA SUSTAINABLE INFRASTUCTURE CAPITAL			8,023				21,982
			840			IRON MTN INC NEW COM			34,076				105,832
			1	2		NET LEASE OFFICE PROPERTIES			-				13
									53,971				148,122				0.39	%
TOTAL REAL ESTATE									53,971				148,122				0.39	%
UTILITIES			339			DOMINION RES INC VA COM			17,456				21,866
			174			DUKE ENERGY CORP COM			15,663				22,542
			102			ENTERGY CORP NEW COM			3,539				12,027
			500			NEXTERA ENERGY INC COM			36,757				48,940
			262			SOUTHERN CO COM			11,431				25,335
			116			WEC ENERGY GROUP INC COM			4,622				13,681
TOTAL UTILITIES									89,468				144,391				0.38	%
RIGHTS ATTACHED TO COMMON STOCKS
			365			HOLOGIC, INC.			-				-
			500			NXG NEXTGEN INFRASTR INCM FD RT RTS			-				12
			725	2		OCCIDENTAL PETROLEUM CORP COM			-				27,949
									-				27,961				0.07	%
TOTAL INVESTMENTS IN COMMON STOCKS								$	7,540,882			$	9,307,606				24.73	%

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Continued)

April 30, 2026

 

						Coupon																				Percent
						Interest				Maturity				Shares								Market				of Net
Company Name						Rate				Date				Held				Cost				Value				Assets
PREFERRED STOCKS:
COMPASS DIV HOLDINGS FIXED FLTG RAT CUM PFD			3, 4				7.875	%			N/A				4,000			$	93,349			$	87,720
TOTAL INVESTMENTS IN PREFERRED STOCKS																		$	93,349			$	87,720			0.23	%

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

SCHEDULE OF INVESTMENTS (Concluded)

April 30, 2026

 

								Market				Percent of
		Company Name		Cost				Value				Net Assets
Short-term Investments		MFB NI Treasury Money Market Fund		$	4,805,784			$	4,805,784				12.77	%
TOTAL INVESTMENTS - MARKET VALUE				$	24,212,550				37,470,711				99.58	%
TOTAL OTHER LIABILITIES IN EXCESS OF ASSETS									158,779				0.42	%
TOTAL NET ASSETS								$	37,629,490				100.00	%

 

¹Market value ratified by the Company's Board of Directors per policy.

²Non-income producing security

³Perpetual security.  Maturity date is not applicable.

⁴Variable rate security.  The rate shown is the coupon as of the end of the reporting period.

⁵Affiliate Investment

⁶Unfunded Commitment of $250,000

⁷Unfunded Commitment of $160,549

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

STATEMENT OF ASSETS AND LIABILITIES

April 30, 2026

 

ASSETS
Affiliated Investment security (cost - $458,155)		$	731,508
Unaffiliated Investment securities (cost - $23,754,395)			36,739,203
Cash			113,864
Receivables, accrued interest and dividends			110,271
Other assets			10,992
Total assets			37,705,838
LIABILITIES:
Accounts payable and accrued expenses			237
Accounts payable to affiliates			76,111
Total liabilities			76,348
NET ASSETS AT APRIL 30, 2026 - EQUIVALENT TO $19.92 PER SHARE ON 1,888,788 SHARES OF COMMON STOCK OUTSTANDING		$	37,629,490
SUMMARY OF SHAREHOLDERS' EQUITY:
Common stock, par value $5.00 per share - authorized 70,000,000 shares; outstanding, 1,888,788 shares		$	9,443,940
Additional paid in capital			22,184,704
Total disributable earnings (loss)			6,000,846
NET ASSETS APPLICABLE TO COMMON STOCK OUTSTANDING		$	37,629,490

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

STATEMENT OF OPERATIONS

Six Months Ending April 30, 2026

 

INVESTMENT INCOME:
Income:
Interest - fixed income		$	65,398
Dividend income (net of $592 foreign tax)			305,582
Total income			370,980
Expenses:
Legal and professional fees			1,620
Audit Fees			-
Directors' fees (Note 6)			7,000
Investment expense			47,701
Investment advisor's fees (Note 7)			124,711
Salaries and related expenses (Note 7)			88,958
Other related party expenses (Note 7)			48,460
Other expense			118
Total expenses			318,568
Investment income, net			52,412
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from unaffiliated investments sold			(210,870	)
Change in unrealized appreciation of affiliated investments
Change in unrealized appreciation of unaffiliated investments			470,692
Total change in unrealized appreciation of investments			470,692
Net realized and unrealized gain (loss)			259,822
NET INCREASE IN NET ASSETS RESULTING  FROM OPERATIONS		$	312,234

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

STATEMENTS OF CHANGES IN NET ASSETS

Six Months Ended April 30, 2026 and 2025

 

		2026				2025
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss)		$	52,412			$	106,123
Net realized gains (losses) from unaffiliated investment securities sold			(210,870	)			(1,386,159	)
Change in unrealized appreciation of affiliated investments			(4,114	)			108,644
Change in unrealized appreciation of unaffiliated investments			474,806				2,088,073
Net increase (decrease) in net assets resulting from operations			312,234				916,681
Distributions to shareholders from:
Distributable earnings			-				(1,166,161	)
Return of capital			(755,515	)			(1,289,263	)
TOTAL INCREASE (DECREASE) IN NET ASSETS			(443,281	)			(1,538,743	)
NET ASSETS AT BEGINNING OF PERIOD			38,072,771				40,370,685
NET ASSETS AT END OF PERIOD		$	37,629,490			$	38,831,942

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

STATEMENT OF CASH FLOWS

Six Months Ending April 30, 2026

 

Cash flows from operating activities:
Net increase in net assets from operations		$	312,234
Realized (gains)/losses from investments sold			210,870
Unrealized (appreciation)/depreciation from affiliated and unaffilated investments			(470,692	)
(Increase)/decrease in short-term money market investments			2,438,858
Purchases of investments securities			(5,864,815	)
Proceed from sales of investment securities			2,896,580
Return of capital on securities			1,403,501
Amortization of bond premiums			258
Accretion of bond discounts			(1,202	)
Changes in assets and liabilities
(Increase)/Decrease in assets:
Receivables, accrued interest and dividends			25,096
Other assets			(9,412	)
Increase/(Decrease) in liabilities:
Payable to affiliates			(4,691	)
Accounts payable and accrued expenses			(84,963	)
Net cash provided by operating activities			851,622
Cash flows from financing activities:
Cash distributions paid			(755,515	)
Net cash used in financing activities			(755,515	)
Net change in cash			96,107
Beginning cash as of October 31, 2025			17,757
Ending cash as of April 30, 2026		$	113,864

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

FINANCIAL HIGHLIGHTS

Six months Ended 4/30/2026 and Years Ended October 31, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018 and 2017

 

The following table presents financial information divided into three parts: per share operating performance, total investment return and ratios and supplemental data for six months ended April 30, 2025 and the years ended October 31, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2017 and 2016. The first part, per share operating performance, details the changes on a per share basis of the Company's beginning net asset value to its ending net asset value. The second part, total investment return, is based on the market price of the Company's shares of stock. Part three, ratios and supplemental data, provides additional financial information related to the Company's performance.

 

		Six Months
		Ended
		April 30,
PER SHARE OPERATING		2026
PERFORMANCE		(unaudited)				2025				2024				2023				2022				2021				2020				2019				2018				2017
Net asset value, beginning of period		$	20.16			$	21.37			$	19.92			$	21.27			$	23.09			$	19.84			$	21.16			$	20.77			$	21.42			$	20.83
Net investment income			0.03				0.04				0.04				0.05				(0.02	)			0.04				0.25				0.34				0.27				0.27
Net gains (losses) on investments			0.14				0.45				2.21				1.06				(0.95	)			4.21				(0.57	)			1.05				0.08				1.32
Total from investment operations			0.17				0.49				2.25				1.11				(0.97	)			4.25				(0.32	)			1.39				0.35				1.59
Less distributions:
Dividends from net investment income			-				0.96				0.02				-				0.05				0.42				0.05				0.33				0.32				0.20
Distributions from capital gains			-				-				0.71				0.60				-				0.14				0.28				0.08				0.37				0.35
Distributions from return of capital			0.40				0.74				0.07				1.86				0.80				0.44				0.67				0.59				0.31				0.45
Total distributions			0.40				1.70				0.80				2.46				0.85				1.00				1.00				1.00				1.00				1.00
Net asset value, end of period		$	19.92			$	20.16			$	21.37			$	19.92			$	21.27			$	23.09			$	19.84			$	21.16			$	20.77			$	21.42
Per share market value, end of period1		$	20.46			$	20.46			$	21.31			$	20.13			$	21.27			$	22.79			$	18.00			$	18.00			$	18.00			$	18.00
TOTAL INVESTMENT RETURN			0.82	%			2.13	%			11.31	%			5.22	%			-4.21	%			21.45	%			-1.52	%			6.69	%			1.63	%			7.63	%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands)		$	37,629			$	38,073			$	40,371			$	37,628			$	40,167			$	43,609			$	97,875			$	104,397			$	102,458			$	105,657
Ratio of expenses to average net assets2			0.84	%			1.86	%			1.93	%			1.88	%			2.17	%			1.86	%			1.12	%			1.06	%			1.01	%			1.03	%
Ratio of net investment income to average net assets3			(0.42	)%			0.02	%			0.18	%			0.27	%			(0.12	)%			0.17	%			1.21	%			1.64	%			1.28	%			1.26	%
Portfolio turnover rate			7.59	%			16.58	%			13.97	%			22.38	%			17.88	%			9.79	%			20.22	%			12.94	%			14.18	%			24.07	%

 

1	Based on net asseet value for which transactions may have been sold in a private transaction recent sales. Prior years based on stock trades, which are very limited, during those years. Ratios do not reflect the Fund's proportionate share of income, expenses and incentive allocations of the underlying limited partnership investments.
2	Average is computed on a quarterly basis. The per share data is calculated using average outstanding shares.
3	Average is computed on a quarterly basis.

 

See accompanying notes to financial statements.

 

 

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2026 (Unaudited)

 

1.	ORGANIZATION

 

BMC Fund, Inc. (the “Fund”) 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 Fund in the preparation of its financial statements.

 

Under the Company’s organizational documents, its officers and Board of Directors (“Board”) are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the Company may enter into contracts with vendors and others that provide for general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company. However, based on experience, the fund expects that risk of loss to be remote.

 

2.	SIGNIFICANT ACCOUNTING POLICIES

 

A.   Basis of Presentation - The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as detailed in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). The Company also follows the accounting and reporting guidance applicable to investment companies in ASC Topic 946, Financial Services – Investment Companies.

 

B.   Investment Valuations – The investment securities and valuation of fixed income and mutual funds are stated at fair value as determined by closing prices on national securities exchanges or based on inputs other than quoted prices on national securities exchanges. Investment securities include corporate bonds, mutual funds, and common and preferred stocks.

 

Pursuant to rule 2a-5 under the 1940 Act, the Board has designated the Fund’s investment adviser Broyhill Asset Management (“BAM” or the “Adviser”), as the valuation designee with respect to the fair valuation of the fund’s portfolio securities, subject to oversight by and periodic reporting to the Board. Fair valued securities are those for which market quotations are not readily available, including circumstances under which the Adviser determines that prices received are not reflective of their market values.

 

The investments in limited partnerships, other investments and venture capital are stated at estimated fair value as determined by the management of these investments and are approved by the Company’s Valuation Committee after giving consideration to historical and projected financial results, economic conditions, financial condition of investee and other factors and events subject to change, and ratified by the Fund’s Board of Directors. Because of the inherent uncertainty of those valuations, the estimated values may differ significantly from the values that would have been used had a ready market value for the investments existed, and these differences could be material.

 

 

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2026 (Unaudited)

 

2.

SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Pursuant to ASC Topic 820, Fair Value Measurement, the Fund may elect to use net asset value per share or its equivalent (“NAV”) as a practical expedient to measure the Company’s interest in Limited Partnerships at fair value, unless it is probable that the investment will be sold at a value different from its NAV. However, in order for the Company to use this methodology, the investment company must calculate NAV in a manner consistent with the measurement principles established by ASC Topic 820. The Company is using the practical expedient.

 

C.   Investment Transactions – Investment transactions are accounted for on the date the order to buy or sell is executed. Realized gains and losses on investments are determined on the basis of specific identification of issues sold or matured. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums on securities purchased are amortized over the lives of the respective securities. Realized gains and losses on foreign currency transactions are included with realized gains and losses on investments.

 

For the six months ended April 30, 2026, the Company purchased and sold securities in the amount of $5,864,815 and $2,896,580, respectively.

 

D.   Option Writing – When the Company writes an option, an amount equal to the premium received by the Company is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Company on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Company has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Company. The Company as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.

 

E.   Income Taxes – No federal tax provision is required as it is the Company’s policy to comply with the provisions of Subchapter M of the Internal Revenue Code of 1954, as amended, including the distribution to its shareholders of substantially all of its income and any capital gains not offset by capital losses. Also, no state income tax provision has been provided because the states in which the Company has income recognize the tax exempt status of a regulated investment company.

 

The Company did not have an accrual for uncertain tax positions as deductions taken and benefits accrued are based on widely understood administrative practices and procedures, and are based on clear and unambiguous tax law. Tax returns for all years 2022 and thereafter are subject to possible future examinations by tax authorities.

 

 

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2026 (Unaudited)

 

2.

SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

F.   Dividend Policy – It is the Company’s policy to pay quarterly distributions during the year in sufficient amounts to meet the requirements to maintain its status as a regulated investment company.

 

G.   Cash and Short-Term Investments – For purposes of financial reporting, the Company considers all investments at financial institutions with original maturities of three months or less to be equivalent to cash. Short-term money market investments managed by third party investors are included in investment securities.

 

H.   Use of Estimates – The preparation of financial statements in conformity with GAAP 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.

 

I.   Fair Value Measurements – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date.

 

In determining fair value, the Company uses various valuation techniques. A fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs are to be used when available. Valuation techniques that are consistent with the market or income approach are used to measure fair value. The fair value hierarchy is categorized into three levels based on the inputs as follows:

 

Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

 

Level 2 - Valuations based on inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly.

 

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 

Fair value is a market-based measure, based on assumptions of prices and inputs considered from the perspective of a market participant that are current as of the measurement date, rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date.

 

 

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2026 (Unaudited)

 

2.

SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for investments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

The following table summarizes fair value information for assets and liabilities measured on a recurring basis as of April 30, 2026.

 

Asset Description (1)		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
Fixed Income		$	-			$	2,975,598			$	-			$	2,975,598
Bond Mutual Funds			1,097,495				-				-				1,097,495
Stock Mutual Funds			2,285,267				-				-				2,285,267
Common Stocks – Publicly Traded			9,307,606				-				-				9,307,606
Preferred Stocks – Publicly Traded			87,720				-				-				87,720
Cash and Cash Equivalents			4,805,784				-				-				4,805,784
Limited Partnerships – Measured at NAV (1)			-				-				-				16,911,241
Total Investments		$	17,583,872			$	2,975,598			$	-			$	37,470,711

 

(1)

Certain investments measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Schedule of Investments.

 

 

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2026 (Unaudited)

 

2.

SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

J.    Investments in Limited Partnerships - As of April 30, 2026, the Company was invested in limited partnerships. Each of these investments has certain restrictions with respect to rights of withdrawal by the Company as specified in the respective agreements. Generally, the Company is required to provide notice of its intent to withdraw after the investment has been maintained for a certain period of time. The management agreements of the limited partnerships provide for compensation to the managers in the form of fees ranging from 0.5% to 2% annually of net assets and performance incentive allowances or fees ranging from 10% to 20% of net profits earned.

 

The following table summarizes the Fund's investments in other limited partnerships as of April 30, 2026. The Fund's investments in limited partnerships have certain redemption and liquidity restrictions which are described in the table below.

 

Investment Limited Partnerships		Redemptions Notice Period		Redemptions Permitted		Investment Strategy
BAM Credit Opportunities Fund (7)		N/A		N/A		Credit Fund of Funds
Elliott Associates, L.P. (1) (2)		60 days		Jan. 1 or July 1		Multi-Strategy
Graham Institutional Partners, L.P. (3)		60 days		Annually		Long/Short Technology
Greenlight Masters Qualified, L.P. (4)		105 days		December 31		Equity Fund of Funds
Mudrick Distressed Opportunity Drawdown Fund II, L.P. (5) (6)		90 days		Quarterly		Distressed Credit
Old Well Special Opportunities Fund II, LLC (7) (8)		N/A		N/A		Private Equity
SJC Onshore Direct Lending Fund IV–5 Year, L.P. (7)		N/A		N/A		Direct Credit

 

(1) There is a gate provision if requests for redemptions would cause a decline in aggregate net asset value of 20%. In addition to the 20% withdrawal limitation, a partner may not withdraw more than 25% of the capital in its Class B capital account on any withdrawal date.

(2) There is a capital surcharge of 1 3/4% for a partial or full withdrawal which may be waived in whole or in part.

(3) Minimum withdrawal of $500,000 or for all of limited partner’s interest in the partnership, if less. A limited partner may not take a partial withdrawal if it would cause the partnership’s aggregate net asset value to be less than $5,000,000. General partner may permit a smaller withdrawal or waive the latter requirement.

(4) There is a gate provision regarding requests for redemptions, subject to various unspecified terms.

(5) Withdrawals of capital contributed less than 12 months preceding the withdrawal date will be subject to a reduction equal to 3% of the requested withdrawal amount.

(6) There is a gate provision if aggregate requested withdrawal amounts exceed 25% of the aggregate partner capital of the partnership, each limited partner who has submitted a timely request will receive a pro rata portion of the requested withdrawal, and any balance will be considered a timely withdrawal request with respect to the next withdrawal date.

(7) Redemptions are not permitted.

(8) In liquidation.

 

 

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2026 (Unaudited)

 

2.

SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

The Company is subject to credit risk to the extent that the investment managers of the underlying limited partnerships are unable to fulfill their obligations according to their organizational documents. The Company, through its investments in limited partnerships, is subject to risk inherent when investing in securities and private investments. In connection with its investments, the Company is subject to the market and credit risk of those investments held or sold short by the limited partnerships. Due to the nature of the Company's investments, the above described risks are limited to the Company's investment balances and unfunded commitment of $160,549 to the limited partnership of SJC Onshore Direct Lending Fund and $250,000 to the BAM Credit Opportunities

Fund.

 

The Company is allocating operating expenses, including salaries and office rent on shared space with an affiliate, based on a reasonable basis of what is necessary to support the Company. See note 7 for further information.

 

3.

UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS

(tax basis)

 

The amount of net unrealized appreciation (depreciation) and the cost of investment securities for tax purposes, including short-term securities as April 30, 2026, were as follows:

 

Gross appreciation (excess of value over tax cost)		$	13,575,984
Gross depreciation (excess of tax cost over value)			(7,035,436	)
Net unrealized appreciation		$	6,540,548
Cost of investments for income tax purposes		$	31,213,204

 

4.

OPTIONS WRITTEN

 

The Company had $0 cash pledged as collateral for options on April 30, 2026. No options were written in the six months ending April 30, 2026.

 

 

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2026 (Unaudited)

 

5.

DISTRIBUTIONS TO SHAREHOLDERS

 

Classifications of distributions, net investment income/(loss) and net realized gain/(loss) may differ for financial statement and tax purposes. The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Company.

 

On December 10, 2025, a distribution of $.20 per share was paid to shareholders of record on November 25, 2025.

 

On March 10, 2026, a distribution of $0.20 per share was paid to shareholders of record on February 25, 2026.

 

The tax character of distributions paid during the first six months of 2026 and 2025 were as follows:

 

		2026				2025
Distributions paid from:
Return of capital		$	755,515			$	0
Ordinary income			-				61,438
Long-term capital gains			-				1,166,161
Retained earnings prior to becoming an investment company			-				1,227,825
		$	755,515			$	2,455,424

 

The tax components of distributable earnings are determined in accordance with income tax regulations, which may differ from composition of net assets reported under generally accepted accounting principles. The tax character of distributions disclosed above will not agree to the total distributions paid due to the tax character of the payments being carried to the next year or from the prior year to meet the tax distribution requirements for a registered investment fund.

 

6.

ADVISORY BOARD AND REMUNERATION OF DIRECTORS

 

The Company does not have an advisory board. The independent directors are paid an annual fee of $3,000 plus $1,000 for each meeting attended in person or $500 for each meeting attended by telephone. In addition, all directors are reimbursed for their reasonable expenses incurred in attending meetings.

 

 

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2026 (Unaudited)

 

7.

RELATED PARTIES

 

The Company leases office space from Broyhill Investments, Inc., which is controlled by M. Hunt Broyhill, an officer of BMC Fund, Inc. The expense associated with this related party lease for the six months ended April 30, 2026 amounted to $14,730. Broyhill Investments, Inc. also acts as a common paymaster for payroll and other shared services. This service is provided at no cost to the Company. All amounts paid by Broyhill Investments, Inc. on behalf of the Company are reimbursed by the Company. Hunt Broyhill also has ownership in Broyhill Asset Management, LLC which serves as the financial advisor for BMC, Fund, Inc. The outstanding payable related to these transactions at April 30, 2026 was $62,843. The expense to Broyhill Asset Management, LLC for financial advisory services was $124,711 for the six months ended April 30, 2026, as governed by an agreement with BAM. The advisory expenses are calculated at .65% of the net asset value at the beginning of each quarter of the fund. Broyhill Investments, Inc. charges the Company a percentage of payroll for employees who are responsible for the Company’s operations. Also, allocated back to the Company is a 3% safe harbor amount of Broyhill Investment, Inc.’s 401k plan which amounted to $2,404 (included in the salaries and related expenses on the statement of operations) for the six months ended April 30, 2026, based on the company match.

 

The Company has committed investing $1,000,000 in the BAM Credit Opportunities Fund which is partly managed by M. Hunt Broyhill. This is the affiliated investment in the financial statements.

 

		Fair Value 10/31/2025				Return of Capital			Net Change In Unrealized Appreciation				Fair Value 4/30/2026
BAM Credit Ops		$	785,622			(50,000	)		$	(4,114	)		$	731,508

 

8.

SUPPLEMENTAL INFORMATION

 

M. Hunt Broyhill, Chairman and Principal Executive Officer, is primarily responsible for the day-to-day management of the Company’s portfolio. Mr. Hunt Broyhill has been President since 2001. He has been engaged in asset management for various institutions and high net worth individuals for more than five years.

 

 

BMC FUND, INC.

NOTES TO FINANCIAL STATEMENTS

Six Months Ended April 30, 2026 (Unaudited)

 

9.

SUPPLEMENTAL PROXY INFORMATION AND 2025 ANNUAL MEETING OF SHAREHOLDERS

 

The Annual Meeting of Shareholders of BMC Fund, Inc. was held on February 19, 2026 at the Fund’s offices in Lenoir, North Carolina. The meeting was held for the following purposes:

 

1. To elect the following 3 directors to serve as follows:

 

Director		Term		Expiring
M. Hunt Broyhill		1 year		2027
David F. Stevens		1 year		2027
Mark E. Roberts		1 year		2027

 

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

 

The directors of the Fund were elected for a one-year term at the 2026 annual meeting of shareholders of the Fund.

 

 

BMC FUND, INC.

DIRECTORS AND OFFICERS

Six Months Ended April 30, 2026 (Unaudited)

 

Directors Who Are Interested Persons
Name, Address and Age		Position(s) Held with Fund		Term of Office and Length of Time Served		Principal Occupation(s) During Past 5 Years		Other Directorships Held by Director During at Least the Past 5 Years
M. Hunt Broyhill (62) 1870 9th Street Court, NW Hickory, NC 28601		Director     Chairman     President Vice President		Since Oct 2021 and Feb 2014 till Feb 2021   Since Oct 2021 and Feb 2014 till Feb 2021   Since 2007 2001-2007		Chairman of the Fund since October 2022 and February 2014 till February 2021; President of the Fund since February 2007; former Vice President of the Fund (2001-2007); Chief Executive of Broyhill Asset Management, LLC (1997-present); Director and President of Broyhill Investments, Inc. (1988- present); Director (1983- present) and President of Broyhill Family Foundation, Inc. (1988-present)		Capitala Finance Corp. (Feb. 2013-2021)

 

Directors Who Are Not Interested Persons
Name, Address and Age		Position(s) Held with Fund		Term of Office and Length of Time Served		Principal Occupation(s) During Past 5 Years		Other Directorships Held by Director During at Least the Past 5 Years
David Stevens (65) 422 Huntington Woods St. SE Lenoir, NC 28645		Director		Since 2023		President of Smith, Stevens, and Ford, CPA		None
Mark E. Roberts (63) 511 Tarrytown Center Rocky Mount, NC 27804		Director		Since 2014		Chief Investment Officer of Ironsides Asset Advisors, LLC, a registered investment advisory firm (2009-present); Chief Investment Officer of Biltmore Family Offices, LLC (May 2013-January 2017); former Director of Global Equities and Hedges Strategies, State of North Carolina Retirement System (2003-2009)		None

 

 

BMC FUND, INC.

DIRECTORS AND OFFICERS

Six Months Ended April 30, 2026 (Unaudited)

 

Other Executive Officers
Name, Address and Age		Positions Held with Fund		Length of Time Served		Principal Occupation During Past 5 Years		Directorships Held by Officer During at Least the Past 5 Years
Danny A. Gilbert (59) 603 Stonecroft Court SE Lenoir, NC 28645		Vice President and Principal Financial Officer		Since 2018 Since 2020		Vice President (since February 2018) and Chief Financial Officer of the Fund since January 2020; Chief Compliance Officer of the Fund (June 2017- December 2019); Vice President of Broyhill Family Foundation, Inc. (2019-present); former Assistant City manager and Finance Director, City of Lenoir, NC (2006-2016)		None
Alan R. Deal (61) 5304 Grace Drive Hickory, NC 28601		Chief Compliance Officer		Since 2020		Chief Compliance Officer of the Fund since January 2020; former Controller, Protect Plus and Imagine One Companies (August 2002-April 2019)		None
Leah B. Geates (41) 802 Lower Creek Dr. NE Lenoir, NC 28645		Secretary		Since 2022		Secretary of the Fund since February 2022, Secretary of Broyhill Family Foundation since June 2022, Accounting Technician at CCC&TI (October 2021-February 2022), Accounting Technician at Grant County Fairgrounds (October 2018-October 2021), Administrative Assistant at AstaReal, Inc (March 2017- October 2018)

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

Investment Objectives

 

The overall investment objective of the Fund is to provide a maximum level of income for shareholders consistent with maintaining the Fund’s long-term purchasing power. This investment objective may not be changed without shareholder approval. The specific goals of the Fund are in order of importance:

 

1)

Preservation of capital

2)

Current income

3)

Moderate growth

 

Performance Objectives

 

A five percent return on the Fund’s assets is desired to be distributed annually for dividend income. Additional modest growth is desired to at least offset inflation risk.

 

●

Investment Horizon: The Fund’s asset allocation and investment guidelines are driven by a long-term time horizon. Accordingly, interim fluctuations should be viewed with this perspective in mind. Short-term performance shortfalls are not of critical interest unless they suggest failures in strategy execution or impact required distributions. Notwithstanding that possibility, manager and asset class performance shall be evaluated on a rolling one, three and five year basis.

 

●

Liquidity Requirements: The Fund aims to distribute five percent of the value of its assets annually to shareholders. Therefore, a minimum of five percent of the value of the Fund should be held in cash and cash equivalents or instruments that can be quickly converted to cash with no significant adverse change in value as a result of the liquidation.

 

●

Risk Tolerance: The Fund seeks to generate returns that are proportional to its risk profile, recognizing that some level of risk must be assumed to achieve the fund’s long-term investment objectives. The objectives and structure of the Fund should be implemented and measured in a manner which seeks low volatility, accepting the possibility of less than average returns in the best years but seeking preservation of capital in the bad years.

 

Asset Allocation Plan

 

The Asset Allocation Plan for the Fund is reported below. It reflects the Investment Committee’s consideration of expected returns for equity, fixed income, cash, and real asset classes in domestic and foreign markets as well as consideration of prevailing and expected levels of inflation. The Investment Committee has considered the expected correlation of asset returns and expected volatility of returns to determine an asset allocation with appropriate diversification and sufficient expected return to satisfy the investment objectives of the Fund.

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

Policy Portfolio

 

A Policy Portfolio for the Fund has been established that reflects the analysis conducted by the Investment Committee for the Fund. The asset allocation study and resultant Policy Portfolio may be changed in the future, subject to approval by the Board. The Investment Committee is responsible for assuring that the assets of the Fund are deployed in a manner consistent with the Policy Portfolio, although this responsibility may be delegated to the Chief Investment Officer.

 

Asset Class		Policy Portfolio		Policy Range
Total Short Term Investments		0%		0% - 10%
Cash & Equivalents
Total Fixed Income Investments		10%		0% - 40%
Domestic Fixed Income
International Fixed Income
Total Equity Investments		45%		25% - 65%
Domestic Equities
International Equities
Total Alternative Investments		45%		25% - 65%
Hedge Funds
Absolute Return
Total Investment Assets		100%

 

Risk Factors

 

An investment in the Fund is not guaranteed to achieve its investment objective; is not a deposit with a bank; is not insured, endorsed or guaranteed by the Federal Deposit Insurance Corporation or any other government agency; and is subject to investment risks. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. You could lose money by investing in the Fund. By itself, the Fund does not constitute a balanced investment program. You should carefully consider the following principal and non- principal risks before investing in the Fund. There may be additional risks that the Fund does not currently foresee or consider material. You may wish to consult with your legal or tax advisors, before deciding whether to invest in the Fund. This section describes the risk factors associated with investment in the Fund specifically, as well as those factors generally associated with investment in an investment company with investment objectives, investment policies, capital structure or trading markets similar to the Fund’s. Each risk summarized below is a risk of investing in the Fund and different risks may be more significant at different times depending upon market conditions or other factors.

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

The Fund may invest in securities of other investment companies (“underlying funds”). The Fund may be subject to the risks of the securities and other instruments described below through its own direct investments and indirectly through investments in the underlying funds.

 

Principal Risks

 

Closed-End Investment Company Risk. The Fund invests in the securities of other closed-end investment companies. Investing in other closed-end investment companies involves substantially the same risks as investing directly in the underlying instruments, but the total return on such investments at the investment company level may be reduced by the operating expenses and fees of such other closed-end investment companies, including advisory fees. There can be no assurance that the investment objective of any investment company in which the Fund invests will be achieved. Closed-end investment companies are subject to the risks of investing in the underlying securities. The Fund, as a holder of the securities of another closed- end investment company, will bear its pro rata portion of the closed-end investment company’s expenses, including advisory fees. These expenses are in addition to the direct expenses of the Fund’s own operations. To the extent the Fund invests a portion of its assets in investment company securities, those assets will be subject to the risks of the purchased investment company’s portfolio securities, and a shareholder in the Fund will bear not only his proportionate share of the expenses of the Fund, but also, indirectly, the expenses of the purchased investment company. The market price of a closed-end investment company fluctuates and may be either higher or lower than the NAV of such closed-end investment company. In accordance with Section 12(d)(1)(F) of the 1940 Act, the Fund will be limited by provisions of the 1940 Act that limit the amount the Fund, together with its affiliated persons, can invest in other investment companies to 3% of any other investment company’s total outstanding stock. As a result, the Fund may hold a smaller position in a closed-end investment company than if it were not subject to this restriction.

 

Special Purpose Acquisition Companies Risk. The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies or similar special purpose entities that pool funds to seek potential acquisition opportunities (“SPACs”). Unless and until an acquisition meeting the SPAC’s requirements is completed, a SPAC generally invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre- established period of time, the invested funds are returned to the entity’s shareholders. Because SPACs and similar entities have no operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity’s management to identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. In addition, these securities, which are typically traded in the over-the-counter market, may be considered illiquid, be subject to restrictions on resale, and/or may trade at a discount.

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

Management Risk. The Fund is subject to management risk because it is an actively managed portfolio. The Fund’s successful pursuit of its investment objective depends upon the Investment Committee’s ability to find and exploit market inefficiencies with respect to undervalued securities. Such situations occur infrequently and sporadically and may be difficult to predict and may not result in a favorable pricing opportunity that allows the Investment Committee to fulfill the Fund’s investment objective. The Investment Committee’s security selections and other investment decisions might produce losses or cause the Fund to underperform when compared to other funds with similar investment goals.

 

Market Risk. Overall market risk may affect the value of individual instruments in which the Fund invests. The Fund is subject to the risk that the securities markets will move down, sometimes rapidly and unpredictably, based on overall economic conditions and other factors, which may negatively affect the Fund’s performance. Factors such as domestic and foreign (non- U.S.) economic growth and market conditions, real or perceived adverse economic or political conditions, inflation, changes in interest rate levels, lack of liquidity in the markets, volatility in the securities markets, adverse investor sentiment affect the securities markets and political events affect the securities markets. Securities markets also may experience long periods of decline in value. When the value of the Fund’s investments goes down, your investment in the Fund decreases in value and you could lose money.

 

Local, state, regional, national or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments and could result in decreases to the Fund’s net asset value. Political, geopolitical, natural and other events, including war, terrorism, trade disputes, government shutdowns, market closures, natural and environmental disasters, epidemics, pandemics and other public health crises and related events and governments’ reactions to such events have led, and in the future may lead, to economic uncertainty, decreased economic activity, increased market volatility and other disruptive effects on U.S. and global economies and markets. Such events may have significant adverse direct or indirect effects on the Fund and its investments. For example, a widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect Fund performance. A health crisis may exacerbate other pre-existing political, social and economic risks. In addition, the increasing interconnectedness of markets around the world may result in many markets being affected by events or conditions in a single country or region or events affecting a single or small number of issuers.

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

Risk Related to Fixed Income Securities, including Non-Investment Grade Securities. The Fund may invest in fixed income securities, also referred to as debt securities. Fixed income securities are subject to credit risk and market risk. Credit risk is the risk of the issuer’s inability to meet its principal and interest payment obligations. Market risk is the risk of price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. There is no limitation on the maturities or duration of fixed income securities in which the Fund invests. Securities having longer maturities generally involve greater risk of fluctuations in value resulting from changes in interest rates. The Fund’s credit quality policy with respect to investments in fixed income securities does not require the Fund to dispose of any debt securities owned in the event that such security’s rating declines to below investment grade, commonly referred to as “junk bonds.” Although lower quality debt typically pays a higher yield, such investments involve substantial risk of loss. Junk bonds are considered predominantly speculative with respect to the issuer’s ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for junk bonds tend to be very volatile and those securities are less liquid than investment grade debt securities. Moreover, junk bonds pose a greater risk that exercise of any of their redemption or call provisions in a declining market may result in their replacement by lower-yielding bonds. In addition, bonds in the lowest two investment grade categories, despite being of higher credit rating than junk bonds, have speculative characteristics with respect to the issuer’s ability to pay interest and principal and their susceptibility to default or decline in market value. The Fund’s investments in securities of stressed, distressed or bankrupt issuers, including securities or obligations that are in default, generally trade significantly below par and are considered speculative. There is even a potential risk of loss by the Fund of its entire investment in such securities. There are a number of significant risks inherent in the bankruptcy process. A bankruptcy filing by an issuer may adversely and permanently affect the market position and operations of the issuer. If an issuer of securities held by the Fund declares bankruptcy or otherwise fails to pay principal or interest on such securities, the Fund would experience a decrease in income and a decline in the market value of its investments.

 

Interest Rate Risk. Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a debt security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturities and mortgage securities can be more sensitive to interest rate changes although they usually offer higher yields to compensate investors for the greater risks. The longer the maturity of the security, the greater the impact a change in interest rates could have on the security’s price. In addition, short-term and long-term interest rates do not necessarily move in the same amount or the same direction. Short-term securities tend to react to changes in short-term interest rates and long-term securities tend to react to changes in long-term interest rates.

 

Credit Risk. Fixed income securities rated B or below by S&Ps or Moody’s may be purchased by the Fund. These securities have speculative characteristics and changes in economic conditions or other circumstances are more likely to lead to a weakened capacity of those issuers to make principal or interest payments, as compared to issuers of more highly rated securities.

 

Extension Risk. The Fund is subject to the risk that an issuer will exercise its right to pay principal on an obligation held by that Fund (such as mortgage-backed securities) later than expected. This may happen when there is a rise in interest rates. These events may lengthen the duration (i.e. interest rate sensitivity) and potentially reduce the value of these securities.

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

Debt Security Risk. In addition to interest rate risk, call risk and extension risk, debt securities are also subject to the risk that they may also lose value if the issuer fails to make principal or interest payments when due, or the credit quality of the issuer falls.

 

Market Discount from Net Asset Value Risk. Shares of closed-end investment companies frequently trade at a discount from their net asset value. This characteristic is a risk separate and distinct from the risk that the Fund’s net asset value could decrease as a result of its investment activities and may be greater for investors expecting to sell their Shares in a relatively short period following completion of the Offering. The net asset value of the Shares will be reduced immediately following the Offering as a result of (i) the Subscription Price likely being lower than NAV and (ii) the payment of certain costs of the Offering. Whether investors will realize gains or losses upon the sale of the Shares will depend not upon the Fund’s net asset value but entirely upon whether the market price of the Shares at the time of sale is above or below the investor’s purchase price for the Shares. Because the market price of the Shares will be determined by factors such as relative supply of and demand for the Shares in the market, general market and economic conditions, and other factors beyond the control of the Fund, the Fund cannot predict whether the Shares will trade at, below or above net asset value.

 

Leverage Risk. Transactions by underlying funds may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the underlying fund to greater risk and increase its costs. The use of leverage by underlying funds may cause such funds to liquidate their portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any required asset segregation requirements. Increases and decreases in the value of an underlying fund’s portfolio will be magnified when it uses leverage. Leverage, including borrowing, may cause an underlying fund to be more volatile than if such fund had not been leveraged.

 

Defensive Position Risk. During periods of adverse market or economic conditions, the Fund may temporarily invest all or a substantial portion of its net assets in cash or cash equivalents. The Fund would not be pursuing its investment objective in these circumstances and could miss favorable market developments.

 

Changes in Policies Risk. The Fund’s Directors may change the Fund’s investment objective, investment strategies and non-fundamental investment restrictions without shareholder approval, except as otherwise indicated.

 

Preferred Stock Risk. The Fund may invest in preferred stocks. Preferred stock, like common stock, represents an equity ownership in an issuer. Generally, preferred stock has a priority of claim over common stock in dividend payments and upon liquidation of the issuer. Unlike common stock, preferred stock does not usually have voting rights. Preferred stock in some instances is convertible into common stock. Although they are equity securities, preferred stocks have characteristics of both debt and common stock. Like debt, their promised income is contractually fixed. Like common stock, they do not have rights to precipitate bankruptcy proceedings or collection activities in the event of missed payments. Other equity characteristics are their subordinated position in an issuer’s capital structure and that their quality and value are heavily dependent on the profitability of the issuer rather than on any legal claims to specific assets or cash flows.

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

Investment in preferred stocks carries risks, including credit risk, deferral risk, redemption risk, limited voting rights, risk of subordination and lack of liquidity. Fully taxable or hybrid preferred securities typically contain provisions that allow an issuer, at its discretion, to defer distributions for up to 20 consecutive quarters. Distributions on preferred stock must be declared by the board of directors and may be subject to deferral, and thus they may not be automatically payable. Income payments on preferred stocks may be cumulative, causing dividends and distributions to accrue even if not declared by the company’s board or otherwise made payable, or they may be non-cumulative, so that skipped dividends and distributions do not continue to accrue. There is no assurance that dividends on preferred stocks in which the Fund invests will be declared or otherwise made payable. The Fund may invest in non-cumulative preferred stock, although the Fund’s Investment Committee would consider, among other factors, their non-cumulative nature in making any decision to purchase or sell such securities.

 

Shares of preferred stock have a liquidation value that generally equals the original purchase price at the date of issuance. The market values of preferred stock may be affected by favorable and unfavorable changes impacting the issuers’ industries or sectors, including companies in the utilities and financial services sectors, which are prominent issuers of preferred stock. They may also be affected by actual and anticipated changes or ambiguities in the tax status of the security and by actual and anticipated changes or ambiguities in tax laws, such as changes in corporate and individual income tax rates, and in the dividends received deduction for corporate taxpayers or the lower rates applicable to certain dividends.

 

Because the claim on an issuer’s earnings represented by preferred stock may become onerous when interest rates fall below the rate payable on the stock or for other reasons, the issuer may redeem preferred stock, generally after an initial period of call protection in which the stock is not redeemable. Thus, in declining interest rate environments in particular, the Fund’s holdings of higher dividend paying preferred stocks may be reduced and the Fund may be unable to acquire securities paying comparable rates with the redemption proceeds. In the event of a redemption, the Fund may not be able to reinvest the proceeds at comparable rates of return.

 

Convertible Securities Risk. The Fund may invest in convertible securities. Convertible securities include fixed income securities that may be exchanged or converted into a predetermined number of shares of the issuer’s underlying common stock at the option of the holder during a specified period. Convertible securities may take the form of convertible preferred stock, convertible bonds or debentures, units consisting of “usable” bonds and warrants or a combination of the features of several of these securities. The investment characteristics of each convertible security vary widely, which allows convertible securities to be employed for a variety of investment strategies. The Fund will exchange or convert convertible securities into shares of underlying common stock when, in the opinion of the Fund’s Investment Committee, the investment characteristics of the underlying common shares will assist the Fund in achieving its investment objective. The Fund may also elect to hold or trade convertible securities. In selecting convertible securities, the Fund’s Investment Committee evaluates the investment characteristics of the convertible security as a fixed income instrument, and the investment potential of the underlying equity security for capital appreciation. In evaluating these matters with respect to a particular convertible security, the Fund’s Investment Committee considers numerous factors, including the economic and political outlook, the value of the security relative to other investment alternatives, trends in the determinants of the issuer’s profits, and the issuer’s management capability and practices.

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

The value of a convertible security, including, for example, a warrant, is a function of its “investment value” (determined by its yield in comparison with the yields of other securities of comparable maturity and quality that do not have a conversion privilege) and its “conversion value” (the security’s worth, at market value, if converted into the underlying common stock). The investment value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors may also have an effect on the convertible security’s investment value. The conversion value of a convertible security is determined by the market price of the underlying common stock. If the conversion value is low relative to the investment value, the price of the convertible security is governed principally by its investment value. Generally, the conversion value decreases as the convertible security approaches maturity. To the extent the market price of the underlying common stock approaches or exceeds the conversion price, the price of the convertible security will be increasingly influenced by its conversion value. A convertible security generally will sell at a premium over its conversion value by the extent to which investors place value on the right to acquire the underlying common stock while holding a fixed income security. A convertible security may be subject to redemption at the option of the issuer at a price established in the convertible security’s governing instrument. If a convertible security held by the Fund is called for redemption, the Fund will be required to permit the issuer to redeem the security, convert it into the underlying common stock or sell it to a third party. Any of these actions could have an adverse effect on the Fund’s ability to achieve its investment objective.

 

Issuer Specific Changes Risk. Changes in the financial condition of an issuer, changes in the specific economic or political conditions that affect a particular type of security or issuer, and changes in general economic or political conditions can affect the credit quality or value of an issuer’s securities. Lower-quality debt securities tend to be more sensitive to these changes than higher-quality debt securities.

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

Non-Principal Risks

 

In addition to the principal risks set forth above, the following additional risks may apply to an investment in the Fund.

 

Anti-Takeover Provisions Risk. The Fund’s Charter and Bylaws include provisions that could limit the ability of other persons or entities to acquire control of the Fund or to cause it to engage in certain transactions or to modify its structure.

 

Common Stock Risk. The Fund invests in common stocks. Common stocks represent an ownership interest in a company. The Fund may also invest in securities that can be exercised for or converted into common stocks (such as convertible preferred stock). Common stocks and similar equity securities are more volatile and riskier than some other forms of investment. Therefore, the value of your investment in the Fund may sometimes decrease instead of increase. Common stock prices fluctuate for many reasons, including adverse events such as unfavorable earnings reports, changes in investors’ perceptions of the financial condition of an issuer, the general condition of the relevant stock market or when political or economic events affecting the issuers occur. In addition, common stock prices may be sensitive to rising interest rates, as the costs of capital rise and borrowing costs increase for issuers. Because convertible securities can be converted into equity securities, their values will normally increase or decrease as the values of the underlying equity securities increase or decrease. The common stocks in which the Fund invests are structurally subordinated to preferred securities, bonds and other debt instruments in a company’s capital structure in terms of priority to corporate income and assets and, therefore, will be subject to greater risk than the preferred securities or debt instruments of such issuers.

 

Exchange Traded Funds Risk. The Fund may invest in exchange-traded funds, which are investment companies that, in some cases, aim to track or replicate a desired index, such as a sector, market or global segment. ETFs are passively or, to a lesser extent, actively managed and their shares are traded on a national exchange. ETFs do not sell individual shares directly to investors and only issue their shares in large blocks known as “creation units.” The investor purchasing a creation unit may sell the individual shares on a secondary market. Therefore, the liquidity of ETFs depends on the adequacy of the secondary market. There can be no assurance that an ETF’s investment objective will be achieved, as ETFs based on an index may not replicate and maintain exactly the composition and relative weightings of securities in the index. ETFs are subject to the risks of investing in the underlying securities. The Fund, as a holder of the securities of the ETF, will bear its pro rata portion of the ETF’s expenses, including advisory fees. These expenses are in addition to the direct expenses of the Fund’s own operations.

 

Illiquid Securities Risk. The Fund may invest up to 10% of its net assets in illiquid securities. Illiquid securities may offer a higher yield than securities which are more readily marketable, but they may not always be marketable on advantageous terms. The sale of illiquid securities often requires more time and results in higher brokerage charges or dealer discounts than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. A security traded in the U.S. that is not registered under the Securities Act will not be considered illiquid if Fund management determines that an adequate investment trading market exists for that security. However, there can be no assurance that a liquid market will exist for any security at a particular time.

 

 

BMC FUND, INC.

ADDITIONAL INFORMATION

Six Months Ended April 30, 2026 (Unaudited)

 

Portfolio Turnover Risk. The Fund cannot predict its securities portfolio turnover rate with certain accuracy. Higher portfolio turnover rates could result in corresponding increases in brokerage commissions and may generate short-term capital gains taxable as ordinary income.

 

Small and Medium Cap Company Risk. Compared to investment companies that focus only on large capitalization companies, the Fund’s share price may be more volatile because it also invests in small and medium capitalization companies. Compared to large companies, small and medium capitalization companies are more likely to have (i) more limited product lines or markets and less mature businesses, (ii) fewer capital resources, (iii) more limited management depth and (iv) shorter operating histories. Further, compared to large cap stocks, the securities of small and medium capitalization companies are more likely to experience sharper swings in market values, be harder to sell at times and at prices that the Fund’s Investment Committee believes appropriate, and offer greater potential for gains and losses.

 

Proxy Voting - The policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities are available without charge, upon request, by calling 828-758- 6100; on the Fund’s website at http://www.bmcfund.com; and on the Securities and Exchange Commission’s website at http://www.sec.gov.

 

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 828- 758-6100, and on the SEC’s website at http://www.sec.gov (see Form N-PX).

 

Portfolio Holdings - The Fund files a complete schedule of its portfolio holdings for each month of its fiscal year with the SEC on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-202-551-8090.