Table of Contents
Manager’s Report to Shareholders | 1 |
CornerCap Balanced Fund | 6 |
CornerCap Small-Cap Value Fund | 9 |
CornerCap Large/Mid-Cap Value Fund | 12 |
Fund Expenses | 15 |
Schedule of Investments | 17 |
CornerCap Balanced Fund | 17 |
CornerCap Small-Cap Value Fund | 24 |
CornerCap Large/Mid-Cap Value Fund | 32 |
Statements of Assets and Liabilities | 37 |
Statements of Operations | 38 |
Statements of Changes in Net Assets | 39 |
Financial Highlights | 40 |
CornerCap Balanced Fund | 40 |
CornerCap Small-Cap Value Fund | 41 |
CornerCap Large/Mid-Cap Value Fund | 43 |
Notes to Financial Statements | 44 |
Report of Independent Registered Public Accounting Firm | 54 |
Additional Information | 55 |
Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
Dear Shareholders,
Our investors “enjoyed” a wild ride last year that essentially ended near where it started. After experiencing the historical calm of 2017, market volatility increased to nearer-normal in 2018. Of course, we ended our fiscal year with two quarters of extreme volatility. The following returns are after all costs:
1 Yr | 5 Yr | 10 Yr | |
CORNERCAP BALANCED | |||
CBLFX | 1.54% | 4.46% | 9.48% |
Combined 60% Russell 1000 Value Index, 40% Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index | 5.40% | 5.62% | 10.08% |
CORNERCAP LARGE/MID-CAP VALUE | |||
CMCRX | 0.32% | 5.84% | 13.62% |
Russell 1000 Value Index | 5.67% | 7.72% | 14.52% |
CORNERCAP SMALL-CAP VALUE – INVESTOR SHARES | |||
CSCVX | -0.99% | 6.35% | 16.35% |
Russell 2000 Value Index | 0.17% | 5.59% | 14.12% |
Past performance does not guarantee future results. Current performance may be lower or higher than the performance quoted. To obtain performance as of the most recent month end, please call (888) 813-8637. The investment return and principal value of your investment will fluctuate, so investors' shares, when redeemed, may be worth more or less than their original cost. The gross expense ratios for the funds are as follows: 1.30% for CSCVX and CMCRX, and 1.22% for CBLFX. The Funds charge a 1.00% redemption fee for shares redeemed within 60 days of purchase.
You will recall that the equity market experienced a material drop in the quarter ending 12/31/18, with various indices down 13% to 20%. Since WWII the S&P 500 Index had 20 quarters with -10% or worse returns (see chart below). The quarter ending 12/31/18 was the 11th worst over this 70-plus year period. Why did this happen? We believe that investors were getting nervous after nine consecutive recession-proof, up-market years. They were also possibly spooked by a fear of slowing earnings expectations, fearful Fed expectations, and of the on-going foreign trade negotiations.
Annual Report | March 31, 2019 | 1 |
Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
Forward Performance | ||||||
Quarter Ending | Quarter Return | 1 Quarter | 1 Year | 3 Year Cumulative | 5 Year Cumulative | |
9/30/1974 | -25.2% | 9.4% | 38.1% | 72.9% | 118.0% | |
12/31/1987 | -22.5% | 5.7% | 16.6% | 48.6% | 108.6% | |
12/31/2008 | -21.9% | -11.0% | 26.4% | 48.6% | 128.1% | |
6/29/1962 | -20.6% | 3.7% | 31.1% | 69.1% | 94.7% | |
6/30/1970 | -18.0% | 16.9% | 41.8% | 57.4% | 56.2% | |
9/30/1946 | -18.0% | 3.7% | 6.3% | 26.8% | 125.0% | |
9/30/2002 | -17.3% | 8.4% | 24.4% | 59.0% | 105.0% | |
9/28/2001 | -14.7% | 10.7% | -20.5% | 12.6% | 40.0% | |
9/30/2011 | -13.9% | 11.8% | 30.2% | 86.0% | 113.4% | |
9/28/1990 | -13.8% | 8.9% | 31.1% | 64.5% | 121.2% | |
12/31/2018 | -13.5% | n/a | n/a | n/a | n/a | |
6/28/2002 | -13.4% | -17.3% | 0.2% | 26.9% | 66.2% | |
3/30/2001 | -11.9% | 5.9% | 0.2% | 1.9% | 21.4% | |
6/30/2010 | -11.4% | 11.3% | 30.7% | 66.2% | 122.4% | |
3/31/2009 | -11.0% | 15.9% | 49.7% | 87.9% | 161.0% | |
9/30/1975 | -11.0% | 8.6% | 30.4% | 40.1% | 91.2% | |
9/30/1981 | -10.2% | 6.9% | 9.9% | 66.2% | 150.6% | |
9/30/1998 | -10.0% | 21.3% | 27.8% | 6.2% | 5.1% |
Source: CornerCap, Bloomberg
In addition to the horror, the above table attempts to quantify an important part of the process for being successful with investing. Immediately following the 20 worst quarters, only two of the next quarter returns were down and none of the three and five year returns were down. We remain focused on realizing long term gains for our fund Shareholders. After experiencing the near term pain shown above, we believe that the probabilities for a long term gain are meaningful and that it’s important to stay with the plan of “rounding up” and staying the course.
At CornerCap, we use probabilities to drive almost all of our investment decisions. The many attributes that are part of the marketplace move through cycles of varying duration and magnitude. These attributes (or valuation characteristics) have measurable correlations to a stock’s return, to each other, to the aggregate market and even to themselves over time. We have been measuring these correlations and valuation extremes over multi-decades of market cycles. Here is how we view the probabilities for successful investment decisions at this time and over time.
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Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
Long Term Tilt
What we do at the philosophical (or macro) level is based on what we believe will perform most effectively over multiple market cycles – the very long term. What wins over time? Based on the Morningstar data from 1970 to 2018 (48 years), Value investments have outperformed Growth investments. And with regard to size, bigger is not always better – see chart below. In 2018 and, actually, in most years since the 2008/09 crash, this tilt toward Value and Smaller has worked against us. While no one can exactly time the optimum peaks and valleys, we are currently doing significant research to better hone our target ranges over the varying market cycles.
Risk as represented by standard deviation
Size Tilt
The growth of capitalization-weighted index funds over the last 10-years has significantly driven up the price of the larger stocks in each of the market indices. We believe that the valuations for these higher capitalization stocks have moved towards a risky extreme. As noted above, we have a long-term preference for owning stocks that are not the largest, offering meaningful capacity and flexibility for future growth – trees do not grow to the sky. To accomplish this preference,
Annual Report | March 31, 2019 | 3 |
Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
typically our large/mid-cap fund (CMCRX) holds equally-weighted stocks, and our small cap fund (CSCVX) cannot hold the larger companies in that space, as is the case for many funds. In this regard, we believe that our portfolios are well positioned going forward.
Style Tilt
Philosophically, we have maintained a Value oriented tilt with our equity research. Compared to a Growth style, Value is generally considered more conservative, has realized higher returns over time (see earlier chart), and typically depends more on current actual data than on less dependable forecasted data. In recent years, especially in 2018 and 2015, higher multiple Growth stocks have generated higher returns. This has hurt our more recent relative-to-market performance.
As we do with the size factor noted earlier, we also measure the cycle extremes for the style factor – see chart below. This chart measures the spread (or difference) between our Value preference Buy list (top 30% of universe) and the more Growth oriented Sells (bottom 30% of universe). Buy and sell decisions are determined by a subset of factors contained within the Fundametrics® “Alpha Composite” and “Financial Warnings Overlay”. The Alpha Composite is a combination of alpha seeking factors designed to identify stocks with potential for excess returns. The Financial Warnings Overlay is then applied to the investible universe of stocks using a separate set of risk factors. The return for the Buy list has averaged 11.6% higher than the annual return for the Sell list. The Buys have at least exceeded the Sells 90% of the time. As you can see with the recent spreads, the Sells have been materially outperforming the Buys, causing the Value stocks to be much more attractive. This recently measured another two standard deviation event, similar to the two extremes that we observed in the Tech Bubble 20-years ago.
Source: CornerCap March 31, 2019
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Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
We have been and will continue to be fully focused on innovative and probabilistic investment research that we believe may enhance returns for our shareholders. We have touched on some of our research in this report. We are committed to growing our alpha-returns over time, and we appreciate your investment in our mutual fund company.
CornerCap Investment Counsel | March 31, 2019 |
The views in this letter reflect the opinions of CornerCap Group of Funds as of March 31, 2019 and may not necessarily reflect the same views on the date this letter is first published or any time thereafter. These views are intended to help shareholders in understanding each fund’s investment methodology and do not constitute investment advice. Past performance does not guarantee future results.
Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate. Investments made in small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. The balanced fund is subject to the same risks as the underlying bonds in its portfolio, such as credit, prepayment, call and interest rate risk. As interest rates rise the value of bond prices will decline. If a Fund invests in ETFs (Exchange-Traded Funds), it will be subject to the same risks as the underlying securities in which the ETF invests as well as entails higher expenses than if invested into the underlying ETF directly.
Price/earnings (P/E) ratio is the valuation of a company’s current share price relative to company earning. Standard deviation is a measure of the volatility of returns. In general, the higher the standard deviation, the greater the volatility of the return.
Annual Report | March 31, 2019 | 5 |
Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
CORNERCAP BALANCED FUND
Investment Performance through March 31, 2019 (In Thousands)
Total Return
for the period ended March 31, 2019
1 Year | 5 Year | 10 Year | Since Inception(a) | Gross Expense Ratio | Net Expense Ratio(b) | |
CornerCap Balanced Fund (c) | 1.54% | 4.46% | 9.48% | 5.62% | 1.22% | 1.02% |
Combined 60% Russell 1000 Value Index, 40% Bloomberg Barclays U.S. Intermediate Government/ Credit Bond Index | 5.40% | 5.62% | 10.08% | 6.81% | ||
Russell 1000 Value Index(d) | 5.67% | 7.72% | 14.52% | 7.79% | ||
Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index(e) | 4.24% | 2.12% | 3.14% | 4.58% |
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Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
Past performance does not guarantee future results. The performance data quoted does not reflect the deduction of the 1% redemption fee imposed if shares are redeemed or exchanged within sixty days of purchase or the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Data quoted represents past performance.
Investment return and share price will fluctuate with market conditions, and investors may have a gain or loss when shares are sold. Mutual fund performance changes over time and currently may be significantly lower than stated above. Performance is updated and published monthly. Call 888-813-8637 for month-end performance figures.
(a) | The Balanced Fund began operations on May 24, 1997. |
(b) | CornerCap Investment Counsel, Inc. (the "Adviser") has entered into a contractual agreement with the Balanced Fund under which it has agreed to waive fees and reimburse the Balanced Fund, for "Total Annual Fund Operating Expenses" (exclusive of all taxes, interest, brokerage fees and commissions, acquired fund fees and expenses, and extraordinary expenses) that exceed 1.00%. To the extent the Balanced Fund incurs excluded expenses, the expense ratio will increase. The current contractual agreement cannot be terminated prior to August 1, 2019, without the Board of Trustees' approval. |
(c) | The Balanced Fund’s total returns include the reinvestment of dividend and capital gain distributions but have not been adjusted for any income taxes payable by shareholders on these distributions. |
(d) | The Russell 1000® Value Index measures the performance of those companies out of the 1,000 largest U.S. companies (based on total market capitalization) that have lower price-to-book ratios and lower forecasted growth values. |
(e) | The Barclays Capital U.S. Intermediate Government/Credit Index measures the general performance of fixed-income securities by tracking publicly issued U.S. Treasury and debt obligations (excluding mortgage-backed securities), fixed-rate, non-convertible, investment-grade corporate debt securities, and U.S. dollar-denominated, SEC-registered non-convertible debt issued by foreign governmental entities or international agencies. |
The index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an index.
Annual Report | March 31, 2019 | 7 |
Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
Sector Allocation as a Percentage of Total Investments at March 31, 2019*
* | These allocations may not reflect the current or future position of the portfolio. |
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Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
CORNERCAP SMALL-CAP VALUE FUND
Investment Performance through March 31, 2019 (In Thousands)
Total Return
for the period ended March 31, 2019
1 Year | 5 Year | 10 Year | Since Inception(a) | Expense Ratio | |
CornerCap Small-Cap Value Fund -- Investor Shares(b) | (0.99)% | 6.35% | 16.35% | 9.41% | 1.30%(c) |
CornerCap Small-Cap Value Fund -- Institutional Shares(b)(d) | (0.68)% | 6.58% | 16.47% | 9.45% | 1.00% |
Russell 2000 Value Index(e) | 0.17% | 5.59% | 14.12% | 10.51% | |
Russell 2000 Index(f) | 2.05% | 7.05% | 15.36% | 9.64% |
Past performance does not guarantee future results. The performance data quoted does not reflect the deduction of the 1% redemption fee imposed if shares are redeemed or exchanged within sixty days of purchase or the deduction
Annual Report | March 31, 2019 | 9 |
Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Data quoted represents past performance.
Investment return and share price will fluctuate with market conditions, and investors may have a gain or loss when shares are sold. Mutual fund performance changes over time and currently may be significantly lower than stated above. Performance is updated and published monthly. Call 888-813-8637 for month-end performance figures.
(a) | The Small-Cap Value Fund’s Investor Shares began operations on September 30, 1992 and the Institutional Shares began operations on December 29, 2015. |
(b) | The Small-Cap Value Fund’s total returns include the reinvestment of dividend and capital gain distributions, but have not been adjusted for any income taxes payable by shareholders on these distributions. |
(c) | The total Annual Fund Operating Expenses (gross) are 1.30%. CornerCap Investment Counsel, Inc. (the “Adviser”) has entered into a contractual agreement with the Small-Cap Value Fund – Investor Shares under which it has agreed to waive fees and reimburse the Small-Cap Value Fund – Investor Shares for “Total Annual Fund Operating Expenses” (exclusive of interest, taxes, brokerage fees and commissions, acquired fund fees and expenses, and extraordinary expenses) that exceed 1.30%. To the extent the Small-Cap Value Fund – Investor Shares incurs excluded expenses, the expense ratio will increase. The current contractual agreement cannot be terminated prior to August 1, 2019, without the Board of Trustees’ approval. |
(d) | The Small-Cap Value Fund’s Institutional Shares performance for the 5-year, 10-year and since inception periods are blended average returns which include the returns of the Investor Shares prior to commencement of operations of the Institutional Shares. |
(e) | The Russell 2000® Value Index measures the 2,000 smallest of the 3,000 largest U.S. Companies (based on total market capitalization) that have lower price-to-book ratios and lower forecasted growth values. |
(f) | The Russell 2000® Index is an index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index. The index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an index. |
The index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an index.
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Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
Sector Allocation as a Percentage of Total Investments at March 31, 2019*
* | These allocations may not reflect the current or future position of the portfolio. |
Annual Report | March 31, 2019 | 11 |
Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
CORNERCAP LARGE/MID-CAP VALUE FUND
Investment Performance through March 31, 2019 (In Thousands)
Total Return
for the period ended March 31, 2019
1 Year | 5 Year | 10 Year | Since Inception(a) | Gross Expense Ratio | Expense Ratio(b) | |
CornerCap Large/Mid-Cap Value Fund(c) | 0.32% | 5.84% | 13.62% | 3.60% | 1.30% | 1.00% |
Russell 1000 Value Index(d) | 5.67% | 7.72% | 14.52% | 6.99% |
Past performance does not guarantee future results. The performance data quoted does not reflect the deduction of the 1% redemption fee imposed if shares are redeemed or exchanged within sixty days of purchase or the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Data quoted represents past performance.
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Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
Investment return and share price will fluctuate with market conditions, and investors may have a gain or loss when shares are sold. Mutual fund performance changes over time and currently may be significantly lower than stated above. Performance is updated and published monthly. Call 888-813-8637 for month-end performance figures.
(a) | Effective July 29, 2010, the CornerCap Contrarian Fund changed its name to the CornerCap Large/Mid-Cap Value Fund. The CornerCap Large/Mid-Cap Value Fund maintains the same investment objective as the CornerCap Contrarian Fund: long-term capital appreciation. Prior to October 11, 2004, the CornerCap Contrarian Fund was known as the CornerCap Micro-Cap Fund. The performance figures include figures for the Cornerstone Micro-Cap Fund, L.P., which was a private, unregistered fund managed by CornerCap Investment Counsel, Inc. (the “Adviser”) that began operations in August 31, 1996 and transferred all its assets to the Micro-Cap Fund on July 27, 2000. The Cornerstone Micro-Cap Fund was managed by the same Adviser as the Micro-Cap Fund. It pursued the same objectives and employed the same strategies as the Micro-Cap Fund. As of December 11, 2004, the Fund’s strategy was changed to multi-cap contrarian. |
(b) | The Adviser has contractually agreed to waive fees and reimburse the Large/Mid-Cap Value Fund for "Total Annual Fund Operating Expenses" (exclusive of all taxes, interest, brokerage fees and commissions, acquired fund fees and expenses, and extraordinary expenses) that exceed 1.00%. The contractual agreement cannot be terminated prior to August 1, 2019, without the Board of Trustees' approval. |
(c) | The Large/Mid-Cap Value Fund’s total returns include the reinvestment of dividend and capital gain distributions, but have not been adjusted for any income taxes payable by shareholders on these distributions. |
(d) | The Russell 1000® Value Index measures the performance of those companies out of the 1,000 largest U.S. companies (based on total market capitalization) that have lower price-to-book ratios and lower forecasted growth values. |
The index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an index.
Annual Report | March 31, 2019 | 13 |
Manager’s Report to Shareholders (Unaudited) |
March 31, 2019
Sector Allocation as a Percentage of Total Investments at March 31, 2019*
* | These allocations may not reflect the current or future position of the portfolio. |
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Fund Expenses (Unaudited) |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including wire fees, redemption fees, and low balance fees, and (2) ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds, and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2018 through March 31, 2019.
Actual Expenses – The first line under each Fund of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes – The second line under each Fund of the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as wire fees, redemption fees, and low balance fees. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report | March 31, 2019 | 15 |
Fund Expenses (Unaudited) |
Beginning Account Value October 1, 2018 | Ending Account Value March 31, 2019 | Expenses Paid During Period(a) | |
CornerCap Balanced Fund | |||
Actual | $1,000.00 | $991.89 | $4.97 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.95 | $5.04 |
CornerCap Small-Cap Value Fund | |||
Investor Shares | |||
Actual | $1,000.00 | $920.16 | $6.22 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.45 | $6.54 |
Institutional Shares | |||
Actual | $1,000.00 | $921.58 | $4.79 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.95 | $5.04 |
CornerCap Large/Mid-Cap Value Fund | |||
Actual | $1,000.00 | $967.80 | $4.91 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.95 | $5.04 |
(a) | These calculations are based on the expenses incurred in the most recent fiscal half-year. The period’s annualized six-month expense ratio is 1.00% for CornerCap Balanced Fund, 1.30% for CornerCap Small-Cap Value Fund — Investor Shares, 1.00% for CornerCap Small-Cap Value Fund — Institutional Shares and 1.00% for CornerCap Large/Mid-Cap Value Fund, respectively. The dollar amounts shown as “Expenses Paid During Period” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent half-year (182), then divided by 365. |
The expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect any transactional costs, account maintenance fees or charges by processing organizations. The Funds do not charge any account maintenance fees or sales load, but do charge a 1.00% redemption fee that is applicable to all redemptions (sales or exchanges) made within sixty (60) days of an initial purchase of shares; provided, however, that the redemption fee will not apply if the shares to be redeemed are held in a retirement account subject to the Employee Retirement Income Security Act.
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Schedule of Investments
CornerCap Balanced Fund | March 31, 2019 |
Shares | Fair Value | |||||||
COMMON STOCK (59.4%) | ||||||||
Aerospace & Defense (1.1%) | ||||||||
Northrop Grumman Corp. | 705 | $ | 190,068 | |||||
United Technologies Corp. | 1,595 | 205,580 | ||||||
395,648 | ||||||||
Banks (4.8%) | ||||||||
Capital One Financial Corp. | 2,270 | 185,436 | ||||||
Citigroup, Inc. | 2,820 | 175,460 | ||||||
Citizens Financial Group, Inc. | 6,095 | 198,088 | ||||||
Fifth Third Bancorp | 7,030 | 177,297 | ||||||
Huntington Bancshares, Inc. | 14,800 | 187,664 | ||||||
JPMorgan Chase & Co. | 1,915 | 193,856 | ||||||
KeyCorp | 11,615 | 182,936 | ||||||
SunTrust Banks, Inc. | 3,005 | 178,046 | ||||||
Wells Fargo & Co. | 3,945 | 190,622 | ||||||
1,669,405 | ||||||||
Biotechnology (1.4%) | ||||||||
Alexion Pharmaceuticals, Inc. (a) | 1,390 | 187,900 | ||||||
Amgen, Inc. | 950 | 180,481 | ||||||
Biogen, Inc. (a) | 555 | 131,191 | ||||||
499,572 | ||||||||
Building Materials (1.6%) | ||||||||
DR Horton, Inc. | 4,695 | 194,279 | ||||||
Johnson Controls International PLC | 5,210 | 192,457 | ||||||
PulteGroup, Inc. | 6,215 | 173,772 | ||||||
560,508 | ||||||||
Chemicals (1.4%) | ||||||||
Celanese Corp., Class A | 1,765 | 174,047 | ||||||
Eastman Chemical Co. | 2,120 | 160,866 | ||||||
LyondellBasell Industries NV, Class A | 1,930 | 162,274 | ||||||
497,187 | ||||||||
Computers (2.7%) | ||||||||
Cognizant Technology Solutions Corp., Class A | 2,715 | 196,702 | ||||||
DXC Technology Co. | 2,755 | 177,174 | ||||||
Fidelity National Information Services, Inc. | 1,890 | 213,759 | ||||||
HP, Inc. | 7,785 | 151,262 | ||||||
Leidos Holdings, Inc. | 2,840 | 182,016 | ||||||
920,913 | ||||||||
Diversified Financial Services (3.6%) | ||||||||
Alliance Data Systems Corp. | 865 | 151,358 | ||||||
Ameriprise Financial, Inc. | 1,380 | 176,778 | ||||||
Bank of America Corp. | 7,060 | 194,785 |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 17 |
Schedule of Investments
CornerCap Balanced Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Diversified Financial Services (3.6%) (continued) | ||||||||
E*TRADE Financial Corp. | 3,825 | $ | 177,595 | |||||
Invesco, Ltd. | 7,970 | 153,901 | ||||||
Morgan Stanley | 4,315 | 182,093 | ||||||
Synchrony Financial | 6,605 | 210,699 | ||||||
1,247,209 | ||||||||
Electric (2.7%) | ||||||||
CenterPoint Energy, Inc. | 6,030 | 185,121 | ||||||
Duke Energy Corp. | 2,100 | 189,000 | ||||||
Evergy, Inc. | 3,495 | 202,885 | ||||||
Exelon Corp. | 3,705 | 185,732 | ||||||
Vistra Energy Corp. | 7,180 | 186,895 | ||||||
949,633 | ||||||||
Entertainment (0.6%) | ||||||||
Royal Caribbean Cruises, Ltd. | 1,815 | 208,035 | ||||||
Food (3.0%) | ||||||||
General Mills, Inc. | 4,525 | 234,169 | ||||||
Kellogg Co. | 3,390 | 194,518 | ||||||
The J.M. Smucker Co. | 1,930 | 224,845 | ||||||
The Kroger Co. | 7,450 | 183,270 | ||||||
Tyson Foods, Inc., Class A | 2,815 | 195,445 | ||||||
1,032,247 | ||||||||
Forest Products & Paper (0.5%) | ||||||||
International Paper Co. | 3,845 | 177,908 | ||||||
Healthcare Products (0.5%) | ||||||||
Medtronic PLC | 2,065 | 188,080 | ||||||
Healthcare Services (1.5%) | ||||||||
Centene Corp. (a) | 2,940 | 156,114 | ||||||
UnitedHealth Group, Inc. | 770 | 190,390 | ||||||
Universal Health Services, Inc., Class B | 1,395 | 186,609 | �� | |||||
533,113 | ||||||||
Insurance (3.6%) | ||||||||
Aflac, Inc. | 4,030 | 201,500 | ||||||
Hartford Financial Services Group, Inc. | 3,780 | 187,942 | ||||||
Lincoln National Corp. | 2,900 | 170,230 | ||||||
Principal Financial Group, Inc. | 3,570 | 179,178 | ||||||
Prudential Financial, Inc. | 1,750 | 160,790 | ||||||
The Allstate Corp. | 2,090 | 196,836 | ||||||
Unum Group | 4,905 | 165,936 | ||||||
1,262,412 |
The accompanying notes to financial statements are an integral part of these financial statements.
18 | www.cornercapfunds.com |
Schedule of Investments
CornerCap Balanced Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Machinery - Construction & Mining (0.5%) | ||||||||
Caterpillar, Inc. | 1,325 | $ | 179,524 | |||||
Machinery - Diversified (0.7%) | ||||||||
Dover Corp. | 2,385 | 223,713 | ||||||
Media (1.0%) | ||||||||
CBS Corp., Class B | 3,865 | 183,704 | ||||||
Viacom, Inc., Class B | 6,375 | 178,946 | ||||||
362,650 | ||||||||
Miscellaneous Manufacturing (2.1%) | ||||||||
Eaton Corp. PLC | 2,390 | 192,539 | ||||||
Parker-Hannifin Corp. | 1,150 | 197,363 | ||||||
Steel Dynamics, Inc. | 4,745 | 167,356 | ||||||
WestRock Co. | 4,655 | 178,519 | ||||||
735,777 | ||||||||
Oil & Gas (4.3%) | ||||||||
Chevron Corp. | 1,625 | 200,167 | ||||||
Devon Energy Corp. | 6,660 | 210,190 | ||||||
Exxon Mobil Corp. | 2,325 | 187,860 | ||||||
Marathon Oil Corp. | 10,715 | 179,048 | ||||||
Marathon Petroleum Corp. | 3,060 | 183,141 | ||||||
Occidental Petroleum Corp. | 2,755 | 182,381 | ||||||
Phillips 66 | 1,980 | 188,437 | ||||||
Valero Energy Corp. | 2,140 | 181,536 | ||||||
1,512,760 | ||||||||
Pharmaceuticals (3.9%) | ||||||||
AbbVie, Inc. | 2,350 | 189,387 | ||||||
Allergan PLC | 1,340 | 196,189 | ||||||
Bristol-Myers Squibb Co. | 3,720 | 177,481 | ||||||
Johnson & Johnson | 1,340 | 187,319 | ||||||
McKesson Corp. | 1,570 | 183,784 | ||||||
Merck & Co., Inc. | 2,550 | 212,084 | ||||||
Pfizer, Inc. | 4,705 | 199,821 | ||||||
1,346,065 | ||||||||
Real Estate Investment Trusts (2.8%) | ||||||||
American Campus Communities, Inc. REIT | 2,695 | 128,228 | ||||||
Douglas Emmett, Inc. REIT | 2,815 | 113,782 | ||||||
Highwoods Properties, Inc. REIT | 2,945 | 137,767 | ||||||
Mid-America Apartment Communities, Inc. REIT | 1,310 | 143,222 | ||||||
Park Hotels & Resorts, Inc. REIT | 3,240 | 100,699 | ||||||
Regency Centers Corp. REIT | 1,655 | 111,696 | ||||||
STORE Capital Corp. REIT | 3,965 | 132,828 |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 19 |
Schedule of Investments
CornerCap Balanced Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Real Estate Investment Trusts (2.8%) (continued) | ||||||||
Welltower, Inc. REIT | 1,390 | $ | 107,864 | |||||
976,086 | ||||||||
Retail (6.9%) | ||||||||
Altria Group, Inc. | 3,975 | 228,284 | ||||||
Best Buy Co., Inc. | 3,125 | 222,062 | ||||||
Booking Holdings, Inc. (a) | 100 | 174,491 | ||||||
CVS Health Corp. | 2,860 | 154,240 | ||||||
eBay, Inc. | 5,730 | 212,812 | ||||||
Molson Coors Brewing Co., Class B | 3,210 | 191,476 | ||||||
Philip Morris International, Inc. | 2,460 | 217,439 | ||||||
PVH Corp. | 1,550 | 189,023 | ||||||
Target Corp. | 2,580 | 207,071 | ||||||
The Home Depot, Inc. | 995 | 190,931 | ||||||
The TJX Cos., Inc. | 4,100 | 218,161 | ||||||
Walgreens Boots Alliance, Inc. | 3,010 | 190,443 | ||||||
2,396,433 | ||||||||
Semiconductors (2.2%) | ||||||||
Broadcom, Inc. | 655 | 196,965 | ||||||
Intel Corp. | 3,605 | 193,589 | ||||||
ON Semiconductor Corp. (a) | 8,990 | 184,924 | ||||||
Skyworks Solutions, Inc. | 2,195 | 181,044 | ||||||
756,522 | ||||||||
Software (1.6%) | ||||||||
Akamai Technologies, Inc. (a) | 2,530 | 181,426 | ||||||
Electronic Arts, Inc. (a) | 1,790 | 181,918 | ||||||
Oracle Corp. | 3,600 | 193,356 | ||||||
556,700 | ||||||||
Telecommunications (2.4%) | ||||||||
AT&T, Inc. | 6,005 | 188,317 | ||||||
Facebook, Inc., Class A (a) | 1,265 | 210,863 | ||||||
Symantec Corp. | 9,860 | 226,681 | ||||||
Verizon Communications, Inc. | 3,230 | 190,990 | ||||||
816,851 | ||||||||
Transportation (2.0%) | ||||||||
CH Robinson Worldwide, Inc. | 2,000 | 173,980 | ||||||
Cummins, Inc. | 1,075 | 169,710 | ||||||
Kansas City Southern | 1,660 | 192,527 | ||||||
United Rentals, Inc. (a) | 1,470 | 167,948 | ||||||
704,165 | ||||||||
TOTAL COMMON STOCK (COST $19,733,071) | 20,709,116 |
The accompanying notes to financial statements are an integral part of these financial statements.
20 | www.cornercapfunds.com |
Schedule of Investments
CornerCap Balanced Fund | March 31, 2019 |
Shares | Fair Value | |||||||
EXCHANGE TRADED FUND (2.1%) | ||||||||
Invesco BulletShares 2020 High Yield Corporate Bond ETF | 30,315 | $ | 729,985 | |||||
TOTAL EXCHANGE TRADED FUND (COST $747,276) | 729,985 |
Principal Amount | Fair Value | |||||||
GOVERNMENT BOND (4.4%) | ||||||||
U.S. Treasury Inflation Indexed Bonds, 2.00%, 01/15/2026 | $ | 388,052 | 419,840 | |||||
U.S. Treasury Inflation Indexed Note, 1.38%, 01/15/2020 | 292,587 | 293,424 | ||||||
U.S. Treasury Inflation Indexed Note, 0.13%, 01/15/2022 | 555,650 | 551,709 | ||||||
U.S. Treasury Inflation Indexed Note, 0.63%, 01/15/2024 | 270,036 | 272,371 | ||||||
TOTAL GOVERNMENT BOND (COST $1,533,518) | 1,537,344 | |||||||
CORPORATE NON-CONVERTIBLE BONDS (31.1%) | ||||||||
Advertising (1.0%) | ||||||||
Omnicom Group, Inc., 4.45%, 08/15/2020 | 335,000 | 342,217 | ||||||
Auto Manufacturers (1.8%) | ||||||||
Ford Motor Co., 9.22%, 09/15/2021 | 275,000 | 308,154 | ||||||
General Motors Financial Co., Inc., 4.00%, 01/15/2025 | 325,000 | 319,022 | ||||||
627,176 | ||||||||
Banks (4.7%) | ||||||||
Bank of America Corp., MTN, 4.75%, 08/15/2020 | 250,000 | 256,278 | ||||||
JPMorgan Chase & Co., 6.30%, 04/23/2019 | 335,000 | 335,697 | ||||||
JPMorgan Chase & Co., 4.25%, 10/15/2020 | 400,000 | 409,283 | ||||||
JPMorgan Chase & Co., 3.88%, 09/10/2024 | 300,000 | 307,746 | ||||||
The Goldman Sachs Group, Inc., 5.75%, 01/24/2022 | 300,000 | 321,835 | ||||||
1,630,839 | ||||||||
Biotechnology (2.1%) | ||||||||
Biogen, Inc., 2.90%, 09/15/2020 | 365,000 | 364,905 | ||||||
Celgene Corp., 4.00%, 08/15/2023 | 360,000 | 373,374 | ||||||
738,279 | ||||||||
Diversified Financial Services (0.9%) | ||||||||
Fiserv, Inc., 4.75%, 06/15/2021 | 300,000 | 311,336 | ||||||
Electronics (2.5%) | ||||||||
Agilent Technologies, Inc., 5.00%, 07/15/2020 | 270,000 | 277,430 | ||||||
Arrow Electronics, Inc., 5.13%, 03/01/2021 | 310,000 | 320,236 | ||||||
Avnet, Inc., 4.88%, 12/01/2022 | 250,000 | 261,398 | ||||||
859,064 | ||||||||
Food (1.0%) | ||||||||
Ingredion, Inc., 3.20%, 10/01/2026 | 380,000 | 363,470 |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 21 |
Schedule of Investments
CornerCap Balanced Fund | March 31, 2019 |
Principal Amount | Fair Value | |||||||
Household Products (1.1%) | ||||||||
Whirlpool Corp., 4.00%, 03/01/2024 | $ | 375,000 | $ | 383,332 | ||||
Insurance (3.4%) | ||||||||
Humana, Inc., 2.63%, 10/01/2019 | 400,000 | 399,476 | ||||||
Humana, Inc., 2.50%, 12/15/2020 | 395,000 | 392,047 | ||||||
The Travelers Cos., Inc., 5.90%, 06/02/2019 | 150,000 | 150,757 | ||||||
WR Berkley Corp., 5.38%, 09/15/2020 | 230,000 | 236,563 | ||||||
1,178,843 | ||||||||
Miscellaneous Manufacturing (1.2%) | ||||||||
General Electric Co., 4.65%, 10/17/2021 | 400,000 | 414,628 | ||||||
Oil & Gas (1.1%) | ||||||||
Valero Energy Partners LP, 4.38%, 12/15/2026 | 370,000 | 383,239 | ||||||
Pharmaceuticals (2.8%) | ||||||||
Cardinal Health, Inc., 3.20%, 03/15/2023 | 320,000 | 317,999 | ||||||
Express Scripts Holding Co., 3.90%, 02/15/2022 | 640,000 | 657,543 | ||||||
975,542 | ||||||||
Real Estate Investment Trusts (0.8%) | ||||||||
Weyerhaeuser Co., 7.13%, 07/15/2023 | 250,000 | 286,369 | ||||||
Retail (4.0%) | ||||||||
CVS Health Corp., 4.13%, 05/15/2021 | 300,000 | 306,687 | ||||||
CVS Health Corp., 2.13%, 06/01/2021 | 350,000 | 343,856 | ||||||
Foot Locker, Inc., 8.50%, 01/15/2022 | 385,000 | 423,500 | ||||||
Walgreen Co., 3.10%, 09/15/2022 | 305,000 | 307,095 | ||||||
1,381,138 | ||||||||
Software (0.9%) | ||||||||
CA, Inc., 5.38%, 12/01/2019 | 300,000 | 304,099 | ||||||
Telecommunications (0.8%) | ||||||||
eBay, Inc., 2.60%, 07/15/2022 | 300,000 | 295,932 | ||||||
Transportation (1.0%) | ||||||||
Southwest Airlines Co., 2.65%, 11/05/2020 | 370,000 | 369,462 | ||||||
TOTAL CORPORATE NON-CONVERTIBLE BONDS (COST $10,821,824) | 10,844,965 |
The accompanying notes to financial statements are an integral part of these financial statements.
22 | www.cornercapfunds.com |
Schedule of Investments
CornerCap Balanced Fund | March 31, 2019 |
Principal Amount | Fair Value | |||||||
MUNICIPAL BONDS (0.4%) | ||||||||
Kansas (0.4%) | ||||||||
Johnson County Unified School District No. 232 de Soto GOB, 4.95%, 09/01/2019 | $ | 150,000 | $ | 151,436 | ||||
TOTAL MUNICIPAL BONDS (COST $150,135) | 151,436 |
Shares | Fair Value | |||||||
SHORT-TERM INVESTMENTS (2.3%) | ||||||||
Federated Treasury Obligations Money Market Fund, Institutional Shares, 2.31% (b) | 792,769 | 792,769 | ||||||
TOTAL SHORT-TERM INVESTMENTS (COST $792,769) | 792,769 | |||||||
INVESTMENTS, AT VALUE (COST $33,778,593) | 99.7 | % | 34,765,615 | |||||
TOTAL ASSETS IN EXCESS OF OTHER LIABILITIES | 0.3 | % | 101,494 | |||||
NET ASSETS | 100.0 | % | $ | 34,867,109 |
(a) | Non-income producing security. |
(b) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of March 31, 2019. |
Common Abbreviations:
ETF | Exchange Traded Fund |
GOB | General Obligation Bond |
LP | Limited Partnership |
MTN | Medium Term Note |
PLC | Public Limited Company |
REIT | Real Estate Investment Trust |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 23 |
Schedule of Investments
CornerCap Small-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
COMMON STOCK (98.2%) | ||||||||
Auto Parts & Equipment (1.3%) | ||||||||
Dana, Inc. | 34,400 | $ | 610,256 | |||||
Modine Manufacturing Co. (a) | 26,996 | 374,435 | ||||||
Wabash National Corp. | 40,640 | 550,672 | ||||||
1,535,363 | ||||||||
Banks (16.6%) | ||||||||
Ameris Bancorp | 13,685 | 470,080 | ||||||
Associated Banc-Corp. | 23,170 | 494,679 | ||||||
Bridge Bancorp, Inc. | 17,035 | 499,125 | ||||||
Bryn Mawr Bank Corp. | 12,245 | 442,412 | ||||||
Camden National Corp. | 5,422 | 226,206 | ||||||
Cathay General Bancorp | 13,475 | 456,937 | ||||||
CIT Group, Inc. | 11,455 | 549,496 | ||||||
ConnectOne Bancorp, Inc. | 25,040 | 493,288 | ||||||
Enterprise Financial Services Corp. | 12,650 | 515,741 | ||||||
Financial Institutions, Inc. | 18,800 | 510,984 | ||||||
First Hawaiian, Inc. | 19,140 | 498,597 | ||||||
First Midwest Bancorp, Inc. | 25,240 | 516,410 | ||||||
FNB Corp. | 41,915 | 444,299 | ||||||
Great Southern Bancorp, Inc. | 9,240 | 479,556 | ||||||
Great Western Bancorp, Inc. | 16,715 | 528,027 | ||||||
Hancock Whitney Corp. | 10,795 | 436,118 | ||||||
Heritage Commerce Corp. | 39,225 | 474,623 | ||||||
Home BancShares, Inc. | 27,370 | 480,891 | ||||||
Horizon Bancorp | 31,745 | 510,777 | ||||||
IBERIABANK Corp. | 7,330 | 525,634 | ||||||
Independent Bank Corp. | 23,780 | 511,270 | ||||||
LegacyTexas Financial Group, Inc. | 13,300 | 497,287 | ||||||
Old Second Bancorp, Inc. | 35,285 | 444,238 | ||||||
PacWest Bancorp | 13,365 | 502,658 | ||||||
Pinnacle Financial Partners, Inc. | 10,085 | 551,650 | ||||||
QCR Holdings, Inc. | 14,570 | 494,214 | ||||||
Republic Bancorp, Inc., Class A | 11,346 | 507,393 | ||||||
Sandy Spring Bancorp, Inc. | 13,855 | 433,384 | ||||||
Simmons First National Corp., Class A | 18,155 | 444,434 | ||||||
Southern National Bancorp of Virginia, Inc. | 33,940 | 497,221 | ||||||
Sterling Bancorp, Inc. | 41,835 | 424,207 | ||||||
Summit Financial Group, Inc. | 21,760 | 576,858 | ||||||
Synovus Financial Corp. | 14,545 | 499,766 | ||||||
TCF Financial Corp. | 21,625 | 447,421 | ||||||
Texas Capital Bancshares, Inc. (a) | 8,610 | 470,020 | ||||||
Umpqua Holdings Corp. | 30,555 | 504,158 | ||||||
United Community Banks, Inc. | 17,835 | 444,627 | ||||||
Univest Corp. of Pennsylvania | 21,780 | 532,739 |
The accompanying notes to financial statements are an integral part of these financial statements.
24 | www.cornercapfunds.com |
Schedule of Investments
CornerCap Small-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Banks (16.6%) (continued) | ||||||||
Valley National Bancorp | 50,350 | $ | 482,353 | |||||
Western Alliance Bancorp. (a) | 11,685 | 479,552 | ||||||
Wintrust Financial Corp. | 7,015 | 472,320 | ||||||
19,771,650 | ||||||||
Building Materials (2.9%) | ||||||||
Armstrong Flooring, Inc. (a) | 35,135 | 477,836 | ||||||
BMC Stock Holdings, Inc. (a) | 29,270 | 517,201 | ||||||
Boise Cascade Co. | 16,885 | 451,843 | ||||||
Builders FirstSource, Inc. (a) | 40,375 | 538,602 | ||||||
Continental Building Products, Inc. (a) | 18,570 | 460,350 | ||||||
Global Brass & Copper Holdings, Inc. | 16,995 | 585,308 | ||||||
Masonite International Corp. (a) | 9,485 | 473,207 | ||||||
3,504,347 | ||||||||
Chemicals (2.7%) | ||||||||
Cabot Corp. | 10,705 | 445,649 | ||||||
Huntsman Corp. | 25,100 | 564,499 | ||||||
Kraton Corp. (a) | 18,660 | 600,479 | ||||||
Minerals Technologies, Inc. | 9,635 | 566,441 | ||||||
OMNOVA Solutions, Inc. (a) | 69,707 | 489,343 | ||||||
PolyOne Corp. | 17,225 | 504,865 | ||||||
3,171,276 | ||||||||
Coal Operations (1.1%) | ||||||||
Arch Coal, Inc., Class A | 6,235 | 569,068 | ||||||
Hallador Energy Co. | 67,310 | 354,051 | ||||||
SunCoke Energy, Inc. (a) | 53,315 | 452,644 | ||||||
1,375,763 | ||||||||
Commercial Services (5.6%) | ||||||||
Emerald Expositions Events, Inc. | 45,265 | 574,866 | ||||||
Heidrick & Struggles International, Inc. | 14,455 | 554,060 | ||||||
HMS Holdings Corp. (a) | 18,320 | 542,455 | ||||||
Korn/Ferry International | 12,615 | 564,900 | ||||||
ManpowerGroup, Inc. | 6,395 | 528,803 | ||||||
National Research Corp., Class A | 11,442 | 441,661 | ||||||
Paylocity Holding Corp. (a) | 7,075 | 631,019 | ||||||
Quanta Services, Inc. | 15,160 | 572,138 | ||||||
The Hackett Group, Inc. | 34,585 | 546,443 | ||||||
TrueBlue, Inc. (a) | 22,935 | 542,183 | ||||||
UniFirst Corp. | 3,680 | 564,880 | ||||||
Vectrus, Inc. (a) | 21,830 | 580,460 | ||||||
6,643,868 |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 25 |
Schedule of Investments
CornerCap Small-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Commerical Services (0.5%) | ||||||||
AMN Healthcare Services, Inc. (a) | 11,600 | $ | 546,244 | |||||
Computers (2.5%) | ||||||||
CommVault Systems, Inc. (a) | 9,545 | 617,943 | ||||||
Insight Enterprises, Inc. (a) | 11,104 | 611,386 | ||||||
Mitek Systems, Inc. (a) | 46,385 | 567,753 | ||||||
Monotype Imaging Holdings, Inc. | 30,170 | 600,081 | ||||||
Sykes Enterprises, Inc. (a) | 19,380 | 548,067 | ||||||
2,945,230 | ||||||||
Distribution/Wholesale (2.7%) | ||||||||
Anixter International, Inc. (a) | 8,155 | 457,577 | ||||||
Core-Mark Holding Co., Inc. | 19,060 | 707,698 | ||||||
G-III Apparel Group, Ltd. (a) | 12,875 | 514,485 | ||||||
ScanSource, Inc. (a) | 14,770 | 529,061 | ||||||
SpartanNash Co. | 34,115 | 541,405 | ||||||
WESCO International, Inc. (a) | 9,560 | 506,776 | ||||||
3,257,002 | ||||||||
Diversified Financial Services (1.7%) | ||||||||
Artisan Partners Asset Management, Inc., Class A | 15,825 | 398,315 | ||||||
Evercore, Inc., Class A | 6,385 | 581,035 | ||||||
Moelis & Co., Class A | 11,480 | 477,683 | ||||||
Victory Capital Holdings, Inc., Class A (a) | 41,810 | 627,986 | ||||||
2,085,019 | ||||||||
Electric (2.2%) | ||||||||
Avista Corp. | 12,095 | 491,299 | ||||||
Hawaiian Electric Industries, Inc. | 12,080 | 492,502 | ||||||
NorthWestern Corp. | 8,045 | 566,448 | ||||||
Portland General Electric Co. | 10,755 | 557,539 | ||||||
Unitil Corp. | 9,850 | 533,575 | ||||||
2,641,363 | ||||||||
Electrical Components & Equipment (3.2%) | ||||||||
Advanced Drainage Systems, Inc. | 19,955 | 514,240 | ||||||
Atkore International Group, Inc. (a) | 27,060 | 582,602 | ||||||
AVX Corp. | 33,520 | 581,237 | ||||||
Jabil, Inc. | 20,400 | 542,436 | ||||||
KEMET Corp. | 26,380 | 447,669 | ||||||
Rambus, Inc. (a) | 56,720 | 592,724 | ||||||
Vishay Precision Group, Inc. (a) | 16,226 | 555,091 | ||||||
3,815,999 |
The accompanying notes to financial statements are an integral part of these financial statements.
26 | www.cornercapfunds.com |
Schedule of Investments
CornerCap Small-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Electronics (1.7%) | ||||||||
Control4 Corp. (a) | 24,915 | $ | 421,811 | |||||
Sanmina Corp. (a) | 18,930 | 546,130 | ||||||
Tech Data Corp. (a) | 5,460 | 559,159 | ||||||
Universal Electronics, Inc. (a) | 15,103 | 561,076 | ||||||
2,088,176 | ||||||||
Energy (0.4%) | ||||||||
Generac Holdings, Inc. (a) | 8,970 | 459,533 | ||||||
Engineering & Construction (0.4%) | ||||||||
Primoris Services Corp. | 25,370 | 524,652 | ||||||
Food (0.3%) | ||||||||
Ingles Markets, Inc., Class A | 14,595 | 403,114 | ||||||
Forest Products & Paper (0.9%) | ||||||||
Domtar Corp. | 13,610 | 675,737 | ||||||
Verso Corp. (a) | 20,760 | 444,679 | ||||||
1,120,416 | ||||||||
Hand & Machine Tools (0.9%) | ||||||||
Columbus McKinnon Corp. | 16,105 | 553,207 | ||||||
Regal Beloit Corp. | 7,035 | 575,955 | ||||||
1,129,162 | ||||||||
Healthcare Products (4.2%) | ||||||||
AngioDynamics, Inc. (a) | 25,565 | 584,416 | ||||||
Genomic Health, Inc. (a) | 7,460 | 522,573 | ||||||
Integer Holdings Corp. (a) | 7,400 | 558,108 | ||||||
Lantheus Holdings, Inc. (a) | 29,240 | 715,795 | ||||||
Natus Medical, Inc. (a) | 19,530 | 495,672 | ||||||
NextGen Healthcare, Inc. (a) | 32,110 | 540,411 | ||||||
OraSure Technologies, Inc. (a) | 48,695 | 542,949 | ||||||
Orthofix Medical, Inc. (a) | 9,920 | 559,587 | ||||||
Quidel Corp. (a) | 7,875 | 515,576 | ||||||
5,035,087 | ||||||||
Healthcare Services (2.6%) | ||||||||
Addus HomeCare Corp. (a) | 8,205 | 521,756 | ||||||
Amedisys, Inc. (a) | 4,370 | 538,646 | ||||||
Charles River Laboratories International, Inc. (a) | 4,400 | 639,100 | ||||||
MEDNAX, Inc. (a) | 12,575 | 341,663 |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 27 |
Schedule of Investments
CornerCap Small-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Healthcare Services (2.6%) (continued) | ||||||||
Select Medical Holdings Corp. (a) | 35,880 | $ | 505,549 | |||||
The Ensign Group, Inc. | 10,350 | 529,817 | ||||||
3,076,531 | ||||||||
Home Builders (0.5%) | ||||||||
MDC Holdings, Inc. | 19,477 | 566,002 | ||||||
Home Furnishings (0.8%) | ||||||||
Hooker Furniture Corp. | 16,650 | 480,019 | ||||||
La-Z-Boy, Inc. | 16,040 | 529,160 | ||||||
1,009,179 | ||||||||
Hotels (0.5%) | ||||||||
Wyndham Destinations, Inc. | 13,340 | 540,137 | ||||||
Household Products (0.4%) | ||||||||
ACCO Brands Corp. | 53,355 | 456,719 | ||||||
Insurance (3.7%) | ||||||||
Employers Holdings, Inc. | 9,805 | 393,278 | ||||||
Essent Group, Ltd. (a) | 14,445 | 627,635 | ||||||
FBL Financial Group, Inc., Class A | 4,430 | 277,850 | ||||||
FedNat Holding Co. | 31,465 | 504,699 | ||||||
Heritage Insurance Holdings, Inc. | 35,235 | 514,431 | ||||||
National General Holdings Corp. | 21,565 | 511,737 | ||||||
Primerica, Inc. | 4,505 | 550,286 | ||||||
Radian Group, Inc. | 29,095 | 603,430 | ||||||
Universal Insurance Holdings, Inc. | 13,140 | 407,340 | ||||||
4,390,686 | ||||||||
Machinery - Construction & Mining (0.4%) | ||||||||
Oshkosh Corp. | 7,150 | 537,179 | ||||||
Machinery - Diversified (2.1%) | ||||||||
Gardner Denver Holdings, Inc. (a) | 19,230 | 534,786 | ||||||
Kadant, Inc. | 6,405 | 563,384 | ||||||
Kennametal, Inc. | 14,140 | 519,645 | ||||||
Milacron Holdings Corp. (a) | 37,650 | 426,198 | ||||||
SPX FLOW, Inc. (a) | 13,670 | 436,073 | ||||||
2,480,086 | ||||||||
Media (1.4%) | ||||||||
Gray Television, Inc. (a) | 24,165 | 516,164 | ||||||
Nexstar Media Group, Inc., Class A | 5,600 | 606,872 |
The accompanying notes to financial statements are an integral part of these financial statements.
28 | www.cornercapfunds.com |
Schedule of Investments
CornerCap Small-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Media (1.4%) (continued) | ||||||||
Sinclair Broadcast Group, Inc., Class A | 13,660 | $ | 525,637 | |||||
1,648,673 | ||||||||
Metal Fabricate & Hardware (0.9%) | ||||||||
AZZ, Inc. | 12,555 | 513,876 | ||||||
The Timken Co. | 13,615 | 593,886 | ||||||
1,107,762 | ||||||||
Miscellaneous Manufacturing (3.6%) | ||||||||
EnPro Industries, Inc. | 8,020 | 516,889 | ||||||
Fabrinet (a) | 10,090 | 528,312 | ||||||
Federal Signal Corp. | 22,440 | 583,216 | ||||||
Greif, Inc., Class A | 12,170 | 502,013 | ||||||
Rexnord Corp. (a) | 22,345 | 561,753 | ||||||
Silgan Holdings, Inc. | 18,735 | 555,118 | ||||||
TriMas Corp. (a) | 16,235 | 490,784 | ||||||
Trinseo SA | 11,460 | 519,138 | ||||||
4,257,223 | ||||||||
Office Furnishings (1.3%) | ||||||||
Herman Miller, Inc. | 14,880 | 523,478 | ||||||
HNI Corp. | 14,545 | 527,838 | ||||||
Knoll, Inc. | 26,560 | 502,250 | ||||||
1,553,566 | ||||||||
Oil & Gas (5.9%) | ||||||||
Berry Petroleum Corp. | 45,455 | 524,551 | ||||||
CVR Energy, Inc. | 13,075 | 538,690 | ||||||
Delek U.S. Holdings, Inc. | 15,885 | 578,532 | ||||||
Encana Corp. | 63,030 | 456,337 | ||||||
Evolution Petroleum Corp. | 80,700 | 544,725 | ||||||
Matrix Service Co. (a) | 25,625 | 501,738 | ||||||
Murphy USA, Inc. (a) | 6,955 | 595,487 | ||||||
National Fuel Gas Co. | 10,340 | 630,326 | ||||||
PBF Energy, Inc., Class A | 16,040 | 499,486 | ||||||
SilverBow Resources, Inc. (a) | 20,300 | 466,900 | ||||||
Southwest Gas Holdings, Inc. | 6,990 | 574,997 | ||||||
Spire, Inc. | 7,135 | 587,139 | ||||||
WPX Energy, Inc. (a) | 40,220 | 527,284 | ||||||
7,026,192 | ||||||||
Pharmaceuticals (1.1%) | ||||||||
ANI Pharmaceuticals, Inc. (a) | 8,630 | 608,760 | ||||||
Pacira Pharmaceuticals, Inc. (a) | 7,041 | 267,981 | ||||||
USANA Health Sciences, Inc. (a) | 4,615 | 387,060 | ||||||
1,263,801 |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 29 |
Schedule of Investments
CornerCap Small-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Real Estate Investment Trusts (8.6%) | ||||||||
Apple Hospitality REIT, Inc. | 26,940 | $ | 439,122 | |||||
Bluerock Residential Growth REIT, Inc. | 16,402 | 176,814 | ||||||
Brandywine Realty Trust REIT | 29,795 | 472,549 | ||||||
CareTrust REIT, Inc. | 20,980 | 492,191 | ||||||
CoreCivic, Inc. REIT | 19,025 | 370,036 | ||||||
EPR Properties REIT | 5,960 | 458,324 | ||||||
Franklin Street Properties Corp. REIT | 62,105 | 446,535 | ||||||
Getty Realty Corp. REIT | 15,015 | 480,930 | ||||||
Gladstone Commercial Corp. REIT | 21,965 | 456,213 | ||||||
Global Medical REIT, Inc. | 43,200 | 424,224 | ||||||
Highwoods Properties, Inc. REIT | 11,580 | 541,712 | ||||||
Hospitality Properties Trust REIT | 16,145 | 424,775 | ||||||
InfraREIT, Inc. REIT | 19,700 | 413,109 | ||||||
Lexington Realty Trust REIT | 46,645 | 422,604 | ||||||
Monmouth Real Estate Investment Corp. REIT | 30,535 | 402,451 | ||||||
Outfront Media, Inc. REIT | 20,920 | 489,528 | ||||||
Preferred Apartment Communities, Inc., Class A REIT | 31,240 | 462,977 | ||||||
RLJ Lodging Trust REIT | 26,775 | 470,437 | ||||||
Senior Housing Properties Trust REIT | 40,135 | 472,790 | ||||||
Spirit Realty Capital, Inc. REIT | 12,620 | 501,393 | ||||||
STAG Industrial, Inc. REIT | 17,850 | 529,252 | ||||||
UMH Properties, Inc. REIT | 32,185 | 453,165 | ||||||
Urstadt Biddle Properties, Inc., Class A REIT | 19,870 | 410,117 | ||||||
10,211,248 | ||||||||
Recreational Vehicles (0.9%) | ||||||||
Brunswick Corp. | 10,200 | 513,366 | ||||||
Malibu Boats, Inc., Class A (a) | 13,120 | 519,290 | ||||||
1,032,656 | ||||||||
Retail (2.3%) | ||||||||
Clarus Corp. | 47,745 | 611,613 | ||||||
Helen of Troy, Ltd. (a) | 5,010 | 580,960 | ||||||
Hudson, Ltd. (a) | 38,790 | 533,362 | ||||||
Nu Skin Enterprises, Inc., Class A | 9,435 | 451,559 | ||||||
World Fuel Services Corp. | 18,195 | 525,654 | ||||||
2,703,148 | ||||||||
Savings & Loans (0.8%) | ||||||||
FS Bancorp, Inc. | 9,955 | 502,529 | ||||||
Washington Federal, Inc. | 17,180 | 496,330 | ||||||
998,859 | ||||||||
Semiconductors (1.0%) | ||||||||
Cypress Semiconductor Corp. | 36,345 | 542,267 | ||||||
Diodes, Inc. (a) | 15,580 | 540,626 |
The accompanying notes to financial statements are an integral part of these financial statements.
30 | www.cornercapfunds.com |
Schedule of Investments
CornerCap Small-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Semiconductors (1.0%) (continued) | ||||||||
Photronics, Inc. (a) | 15,149 | $ | 143,158 | |||||
1,226,051 | ||||||||
Software (2.7%) | ||||||||
ACI Worldwide, Inc. (a) | 18,780 | 617,299 | ||||||
j2 Global, Inc. | 6,145 | 532,157 | ||||||
Progress Software Corp. | 16,265 | 721,678 | ||||||
SPS Commerce, Inc. (a) | 8,100 | 859,086 | ||||||
Verint Systems, Inc. (a) | 9,025 | 540,236 | ||||||
3,270,456 | ||||||||
Storage & Warehousing (0.4%) | ||||||||
Mobile Mini, Inc. | 15,535 | 527,258 | ||||||
Telecommunications (1.8%) | ||||||||
Extreme Networks, Inc. (a) | 70,600 | 528,794 | ||||||
TEGNA, Inc. | 37,660 | 531,006 | ||||||
Telephone & Data Systems, Inc. | 15,385 | 472,781 | ||||||
Zix Corp. (a) | 82,225 | 565,708 | ||||||
2,098,289 | ||||||||
Transportation (2.2%) | ||||||||
Covenant Transportation Group, Inc., Class A (a) | 22,215 | 421,640 | ||||||
General Finance Corp. (a) | 54,245 | 506,106 | ||||||
Hub Group, Inc. (a) | 13,175 | 538,199 | ||||||
Marten Transport, Ltd. | 30,635 | 546,222 | ||||||
McGrath RentCorp | 10,075 | 569,943 | ||||||
2,582,110 | ||||||||
Waste Management (0.5%) | ||||||||
Clean Harbors, Inc. (a) | 7,965 | 569,736 | ||||||
TOTAL COMMON STOCK (COST $116,182,470) | 117,186,811 | |||||||
INVESTMENTS, AT VALUE (COST $116,182,470) | 98.2 | % | 117,186,811 | |||||
TOTAL ASSETS IN EXCESS OF OTHER LIABILITIES | 1.8 | % | 2,204,015 | |||||
NET ASSETS | 100.0 | % | $ | 119,390,826 |
(a) | Non-income producing security. |
Common Abbreviations:
REIT | Real Estate Investment Trust |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 31 |
Schedule of Investments
CornerCap Large/Mid-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
COMMON STOCK (98.8%) | ||||||||
Aerospace & Defense (1.8%) | ||||||||
Northrop Grumman Corp. | 1,165 | $ | 314,084 | |||||
United Technologies Corp. | 2,655 | 342,203 | ||||||
656,287 | ||||||||
Banks (8.6%) | ||||||||
Capital One Financial Corp. | 3,945 | 322,267 | ||||||
Citigroup, Inc. | 5,010 | 311,722 | ||||||
Citizens Financial Group, Inc. | 9,770 | 317,525 | ||||||
Fifth Third Bancorp | 11,455 | 288,895 | ||||||
Huntington Bancshares, Inc. | 22,680 | 287,583 | ||||||
JPMorgan Chase & Co. | 3,050 | 308,752 | ||||||
KeyCorp | 19,060 | 300,195 | ||||||
Regions Financial Corp. | 23,020 | 325,733 | ||||||
SunTrust Banks, Inc. | 5,080 | 300,990 | ||||||
Wells Fargo & Co. | 6,545 | 316,254 | ||||||
3,079,916 | ||||||||
Biotechnology (2.4%) | ||||||||
Alexion Pharmaceuticals, Inc. (a) | 2,390 | 323,080 | ||||||
Amgen, Inc. | 1,665 | 316,317 | ||||||
Biogen, Inc. (a) | 1,005 | 237,562 | ||||||
876,959 | ||||||||
Building Materials (2.7%) | ||||||||
DR Horton, Inc. | 8,055 | 333,316 | ||||||
Johnson Controls International PLC | 9,080 | 335,415 | ||||||
PulteGroup, Inc. | 11,020 | 308,119 | ||||||
976,850 | ||||||||
Chemicals (2.4%) | ||||||||
Celanese Corp., Class A | 2,970 | 292,872 | ||||||
Eastman Chemical Co. | 3,845 | 291,758 | ||||||
LyondellBasell Industries NV, Class A | 3,485 | 293,019 | ||||||
877,649 | ||||||||
Computers (4.4%) | ||||||||
Cognizant Technology Solutions Corp., Class A | 4,780 | 346,311 | ||||||
DXC Technology Co. | 4,815 | 309,653 | ||||||
Fidelity National Information Services, Inc. | 2,695 | 304,804 | ||||||
HP, Inc. | 14,525 | 282,221 | ||||||
Leidos Holdings, Inc. | 5,045 | 323,334 | ||||||
1,566,323 | ||||||||
Diversified Financial Services (6.2%) | ||||||||
Alliance Data Systems Corp. | 1,755 | 307,090 | ||||||
Ameriprise Financial, Inc. | 2,565 | 328,576 | ||||||
Bank of America Corp. | 11,775 | 324,872 |
The accompanying notes to financial statements are an integral part of these financial statements.
32 | www.cornercapfunds.com |
Schedule of Investments
CornerCap Large/Mid-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Diversified Financial Services (6.2%) (continued) | ||||||||
E*TRADE Financial Corp. | 6,315 | $ | 293,205 | |||||
Invesco, Ltd. | 16,460 | 317,843 | ||||||
Morgan Stanley | 7,800 | 329,160 | ||||||
Synchrony Financial | 10,305 | 328,730 | ||||||
2,229,476 | ||||||||
Electric (4.3%) | ||||||||
CenterPoint Energy, Inc. | 10,765 | 330,485 | ||||||
Duke Energy Corp. | 3,485 | 313,650 | ||||||
Evergy, Inc. | 4,770 | 276,899 | ||||||
Exelon Corp. | 6,040 | 302,785 | ||||||
Vistra Energy Corp. | 12,450 | 324,074 | ||||||
1,547,893 | ||||||||
Entertainment (1.0%) | ||||||||
Royal Caribbean Cruises, Ltd. | 3,030 | 347,299 | ||||||
Food (4.5%) | ||||||||
General Mills, Inc. | 8,035 | 415,811 | ||||||
Kellogg Co. | 4,730 | 271,408 | ||||||
The J.M. Smucker Co. | 2,390 | 278,435 | ||||||
The Kroger Co. | 12,795 | 314,757 | ||||||
Tyson Foods, Inc., Class A | 5,075 | 352,357 | ||||||
1,632,768 | ||||||||
Forest Products & Paper (0.9%) | ||||||||
International Paper Co. | 6,720 | 310,934 | ||||||
Healthcare Products (0.9%) | ||||||||
Medtronic PLC | 3,530 | 321,512 | ||||||
Healthcare Services (2.5%) | ||||||||
Centene Corp. (a) | 5,000 | 265,500 | ||||||
UnitedHealth Group, Inc. | 1,190 | 294,239 | ||||||
Universal Health Services, Inc., Class B | 2,400 | 321,048 | ||||||
880,787 | ||||||||
Insurance (6.3%) | ||||||||
Aflac, Inc. | 7,010 | 350,500 | ||||||
Hartford Financial Services Group, Inc. | 6,495 | 322,931 | ||||||
Lincoln National Corp. | 5,295 | 310,817 | ||||||
Principal Financial Group, Inc. | 6,120 | 307,163 | ||||||
Prudential Financial, Inc. | 3,250 | 298,610 | ||||||
The Allstate Corp. | 3,615 | 340,461 | ||||||
Unum Group | 9,680 | 327,474 | ||||||
2,257,956 |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 33 |
Schedule of Investments
CornerCap Large/Mid-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Machinery - Construction & Mining (0.9%) | ||||||||
Caterpillar, Inc. | 2,500 | $ | 338,725 | |||||
Machinery - Diversified (1.0%) | ||||||||
Dover Corp. | 3,855 | 361,599 | ||||||
Media (1.7%) | ||||||||
CBS Corp., Class B | 6,670 | 317,025 | ||||||
Viacom, Inc., Class B | 10,560 | 296,419 | ||||||
613,444 | ||||||||
Miscellaneous Manufacturing (3.2%) | ||||||||
Eaton Corp. PLC | 4,090 | 329,491 | ||||||
Parker-Hannifin Corp. | 1,865 | 320,071 | ||||||
Steel Dynamics, Inc. | 6,615 | 233,311 | ||||||
WestRock Co. | 7,305 | 280,147 | ||||||
1,163,020 | ||||||||
Oil & Gas (7.0%) | ||||||||
Chevron Corp. | 2,845 | 350,447 | ||||||
Devon Energy Corp. | 10,785 | 340,375 | ||||||
Exxon Mobil Corp. | 3,763 | 304,050 | ||||||
Marathon Oil Corp. | 19,015 | 317,741 | ||||||
Marathon Petroleum Corp. | 4,205 | 251,669 | ||||||
Occidental Petroleum Corp. | 4,750 | 314,450 | ||||||
Phillips 66 | 3,340 | 317,868 | ||||||
Valero Energy Corp. | 3,680 | 312,174 | ||||||
2,508,774 | ||||||||
Pharmaceuticals (6.4%) | ||||||||
AbbVie, Inc. | 3,905 | 314,704 | ||||||
Allergan PLC | 2,360 | 345,527 | ||||||
Bristol-Myers Squibb Co. | 6,375 | 304,151 | ||||||
Johnson & Johnson | 2,315 | 323,614 | ||||||
McKesson Corp. | 2,670 | 312,550 | ||||||
Merck & Co., Inc. | 4,310 | 358,463 | ||||||
Pfizer, Inc. | 7,615 | 323,409 | ||||||
2,282,418 | ||||||||
Real Estate Investment Trusts (4.9%) | ||||||||
American Campus Communities, Inc. REIT | 4,220 | 200,788 | ||||||
Douglas Emmett, Inc. REIT | 4,615 | 186,538 | ||||||
EPR Properties REIT | 2,425 | 186,482 | ||||||
Highwoods Properties, Inc. REIT | 4,045 | 189,225 | ||||||
Mid-America Apartment Communities, Inc. REIT | 1,955 | 213,740 | ||||||
Park Hotels & Resorts, Inc. REIT | 5,165 | 160,528 | ||||||
Regency Centers Corp. REIT | 2,750 | 185,598 | ||||||
STORE Capital Corp. REIT | 6,715 | 224,953 |
The accompanying notes to financial statements are an integral part of these financial statements.
34 | www.cornercapfunds.com |
Schedule of Investments
CornerCap Large/Mid-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
Real Estate Investment Trusts (4.9%) (continued) | ||||||||
Welltower, Inc. REIT | 2,505 | $ | 194,388 | |||||
1,742,240 | ||||||||
Retail (10.9%) | ||||||||
Altria Group, Inc. | 5,705 | 327,638 | ||||||
Best Buy Co., Inc. | 4,385 | 311,598 | ||||||
Booking Holdings, Inc. (a) | 175 | 305,359 | ||||||
CVS Health Corp. | 4,250 | 229,202 | ||||||
eBay, Inc. | 11,920 | 442,709 | ||||||
Molson Coors Brewing Co., Class B | 5,655 | 337,321 | ||||||
Philip Morris International, Inc. | 4,085 | 361,073 | ||||||
PVH Corp. | 3,025 | 368,899 | ||||||
Target Corp. | 4,380 | 351,539 | ||||||
The Home Depot, Inc. | 1,710 | 328,132 | ||||||
The TJX Cos., Inc. | 5,710 | 303,829 | ||||||
Walgreens Boots Alliance, Inc. | 4,155 | 262,887 | ||||||
3,930,186 | ||||||||
Semiconductors (3.6%) | ||||||||
Broadcom, Inc. | 1,165 | 350,327 | ||||||
Intel Corp. | 5,960 | 320,052 | ||||||
ON Semiconductor Corp. (a) | 14,345 | 295,077 | ||||||
Skyworks Solutions, Inc. | 3,805 | 313,836 | ||||||
1,279,292 | ||||||||
Software (2.9%) | ||||||||
Akamai Technologies, Inc. (a) | 4,400 | 315,524 | ||||||
Electronic Arts, Inc. (a) | 3,470 | 352,656 | ||||||
Oracle Corp. | 6,790 | 364,691 | ||||||
1,032,871 | ||||||||
Telecommunications (3.8%) | ||||||||
AT&T, Inc. | 10,935 | 342,921 | ||||||
Facebook, Inc., Class A (a) | 2,220 | 370,052 | ||||||
Symantec Corp. | 13,630 | 313,354 | ||||||
Verizon Communications, Inc. | 5,715 | 337,928 | ||||||
1,364,255 | ||||||||
Transportation (3.6%) | ||||||||
CH Robinson Worldwide, Inc. | 3,495 | 304,030 | ||||||
Cummins, Inc. | 2,085 | 329,159 | ||||||
Kansas City Southern | 3,005 | 348,520 | ||||||
United Rentals, Inc. (a) | 2,655 | 303,334 | ||||||
1,285,043 | ||||||||
TOTAL COMMON STOCK (COST $34,304,021) | 35,464,476 |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 35 |
Schedule of Investments
CornerCap Large/Mid-Cap Value Fund | March 31, 2019 |
Shares | Fair Value | |||||||
SHORT-TERM INVESTMENTS (1.1%) | ||||||||
Federated Treasury Obligations Money Market Fund, Institutional Shares, 2.31% (b) | 412,567 | $ | 412,567 | |||||
TOTAL SHORT-TERM INVESTMENTS (COST $412,567) | 412,567 | |||||||
INVESTMENTS, AT VALUE (COST $34,716,588) | 99.9 | % | 35,877,043 | |||||
TOTAL ASSETS IN EXCESS OF OTHER LIABILITIES | 0.1 | % | 30,138 | |||||
NET ASSETS | 100.0 | % | $ | 35,907,181 |
(a) | Non-income producing security. |
(b) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of March 31, 2019. |
Common Abbreviations:
PLC | Public Limited Company |
REIT | Real Estate Investment Trust |
The accompanying notes to financial statements are an integral part of these financial statements.
36 | www.cornercapfunds.com |
Statements of Assets and Liabilities
March 31, 2019
CornerCap | CornerCap | CornerCap | ||||||||||
ASSETS: | ||||||||||||
Investments, at value (Cost $33,778,593, $116,182,470 and $34,716,588, respectively) | $ | 34,765,615 | $ | 117,186,811 | $ | 35,877,043 | ||||||
Cash | 991 | 1,902,654 | 1,797 | |||||||||
Receivable for fund shares subscribed | 271,792 | 9,180 | 10,860 | |||||||||
Receivable for investments sold | – | 2,508,997 | – | |||||||||
Dividends and interest receivable | 144,523 | 161,512 | 57,509 | |||||||||
Total assets | 35,182,921 | 121,769,154 | 35,947,209 | |||||||||
LIABILITIES: | ||||||||||||
Payable for investment securities purchased | – | 2,277,113 | – | |||||||||
Payable for fund shares redeemed | 293,232 | 2,222 | 17,408 | |||||||||
Advisory fee payable | 13,702 | 66,840 | 10,378 | |||||||||
Other expenses | 8,878 | 32,153 | 12,242 | |||||||||
Total liabilities | 315,812 | 2,378,328 | 40,028 | |||||||||
Net assets | $ | 34,867,109 | $ | 119,390,826 | $ | 35,907,181 | ||||||
PRICING OF INVESTOR SHARES (NOTE 2): | ||||||||||||
Net Assets | 34,867,109 | 85,229,779 | 35,907,181 | |||||||||
Shares Outstanding | 2,533,437 | 6,494,732 | 2,919,089 | |||||||||
Net asset value, offering and redemption price per share | $ | 13.76 | $ | 13.12 | $ | 12.30 | ||||||
PRICING OF INSTITUTIONAL SHARES (NOTE 2): | ||||||||||||
Net Assets | $ | – | $ | 34,161,047 | $ | – | ||||||
Shares Outstanding | – | 2,598,017 | – | |||||||||
Net asset value, offering and redemption price per share | $ | – | $ | 13.15 | $ | – | ||||||
NET ASSETS CONSISTS OF: | ||||||||||||
Paid-in capital | $ | 33,114,641 | $ | 123,158,535 | $ | 34,187,809 | ||||||
Distributable earnings (Accumulated Deficit) | 1,752,468 | (3,767,709 | ) | 1,719,372 | ||||||||
Net assets | $ | 34,867,109 | $ | 119,390,826 | $ | 35,907,181 |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 37 |
Statements of Operations
For the Year Ended March 31, 2019
CornerCap Balanced Fund | CornerCap Small-Cap Value Fund | CornerCap Large/Mid-Cap Value Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividends, (net of foreign withholding taxes of $0, $177 and $0) | $ | 576,812 | $ | 2,311,705 | $ | 849,268 | ||||||
Interest | 371,152 | – | – | |||||||||
Total investment income | 947,964 | 2,311,705 | 849,268 | |||||||||
EXPENSES: | ||||||||||||
Advisory fees | 320,374 | 1,123,816 | 311,590 | |||||||||
Operating expenses | ||||||||||||
Investor Shares | 106,792 | 350,107 | 138,485 | |||||||||
Institutional Shares | – | 37,342 | – | |||||||||
Total expenses | 427,166 | 1,511,265 | 450,075 | |||||||||
Less fees waived/reimbursed by investment adviser | (71,195 | ) | – | (103,864 | ) | |||||||
Net expenses | 355,971 | 1,511,265 | 346,211 | |||||||||
Net investment income | 591,993 | 800,440 | 503,057 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||
Net realized gain on investments | 860,933 | 3,852,366 | 1,047,370 | |||||||||
Net change in unrealized depreciation on investments | (918,381 | ) | (6,482,167 | ) | (1,421,457 | ) | ||||||
Net loss on investments | (57,448 | ) | (2,629,801 | ) | (374,087 | ) | ||||||
Net increase (decrease) in net assets resulting from operations | $ | 534,545 | $ | (1,829,361 | ) | $ | 128,970 |
The accompanying notes to financial statements are an integral part of these financial statements.
38 | www.cornercapfunds.com |
Statements of Changes in Net Assets
CornerCap Balanced Fund | CornerCap Small-Cap Value Fund | CornerCap | ||||||||||||||||||||||
For the Year Ended March 31, 2019 | For the Year Ended March 31, 2018 | For the Year Ended March 31, 2019 | For the Year Ended March 31, 2018 | For the Year Ended March 31, 2019 | For the Year Ended March 31, 2018 | |||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 591,993 | $ | 478,056 | $ | 800,440 | $ | 509,845 | $ | 503,057 | $ | 287,582 | ||||||||||||
Net realized gain on investments | 860,933 | 1,966,801 | 3,852,366 | 10,351,413 | 1,047,370 | 2,429,209 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (918,381 | ) | (78,442 | ) | (6,482,167 | ) | (4,412,405 | ) | (1,421,457 | ) | 440,032 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 534,545 | 2,366,415 | (1,829,361 | ) | 6,448,853 | 128,970 | 3,156,823 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
Investor Shares | (1,782,575 | ) | (1,853,763 | )* | (9,987,827 | ) | (11,137,541 | )* | (2,069,311 | ) | (2,078,414 | )* | ||||||||||||
Institutional Shares | – | – | (3,929,405 | ) | (4,670,247 | )** | – | – | ||||||||||||||||
Total distributions | (1,782,575 | ) | (1,853,763 | ) | (13,917,232 | ) | (15,807,788 | ) | (2,069,311 | ) | (2,078,414 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Net increase (decrease) from capital share transactions (see Note 3) | (1,615,201 | ) | 6,625,365 | 12,558,930 | 25,957,718 | 6,300,504 | 5,396,772 | |||||||||||||||||
Redemption fees | 139 | – | 1,544 | 523 | 373 | 583 | ||||||||||||||||||
Net increase (decrease) from capital share transactions | (1,615,062 | ) | 6,625,365 | 12,560,474 | 25,958,241 | 6,300,877 | 5,397,355 | |||||||||||||||||
Total increase (decrease) in net assets | (2,863,092 | ) | 7,138,017 | (3,186,119 | ) | 16,599,306 | 4,360,536 | 6,475,764 | ||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of year | 37,730,201 | 30,592,184 | 122,576,945 | 105,977,639 | 31,546,645 | 25,070,881 | ||||||||||||||||||
End of year | $ | 34,867,109 | $ | 37,730,201 | *** | $ | 119,390,826 | $ | 122,576,945 | *** | $ | 35,907,181 | $ | 31,546,645 | *** |
* | Distributions were the result of net investment income of $433,891, $66,439 and $228,684 and net realized gains of $1,419,872, 11,071,102 and $1,849,730 for the CornerCap Balanced Fund, CornerCap Small-Cap Value Fund and CornerCap Large/Mid-Cap Value Fund, respectively, for the year ending March 31, 2018. |
** | Distributions were the result of net investment income and net realized gain of $126,339 and $4,543,908, respectively, for the year ending March 31, 2018. |
*** | Includes undistributed net investment income of $380,936, $178,361 and $83,829 at March 31, 2018 for the CornerCap Balanced Fund, CornerCap Small-Cap Cap Value Fund and CornerCap Large/Mid-Cap Value Fund, respectively. The requirement to disclose the corresponding amount as of March 31, 2019 was eliminated. |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 39 |
Financial Highlights
CornerCap Balanced Fund
Selected data for each share of beneficial interest outstanding throughout the years indicated: | Year Ended March 31, 2019 | Year Ended March 31, 2018 | Year Ended March 31, 2017 | Year Ended March 31, 2016 | Year Ended March 31, 2015 | |||||||||||||||
PER SHARE OPERATING PERFORMANCE | ||||||||||||||||||||
Net asset value, beginning of year | $ | 14.32 | $ | 14.08 | $ | 12.70 | $ | 14.62 | $ | 15.51 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(a) | 0.23 | 0.20 | 0.20 | 0.22 | 0.22 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.06 | ) | 0.82 | 1.38 | (0.75 | ) | 0.59 | |||||||||||||
Total Income/(Loss) from Investment Operations | 0.17 | 1.02 | 1.58 | (0.53 | ) | 0.81 | ||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||
Distributions from net investment income | (0.23 | ) | (0.18 | ) | (0.20 | ) | (0.09 | ) | (0.23 | ) | ||||||||||
Distributions from net realized gain on investments | (0.50 | ) | (0.60 | ) | – | (1.30 | ) | (1.47 | ) | |||||||||||
Total Dividends and Distributions to Shareholders | (0.73 | ) | (0.78 | ) | (0.20 | ) | (1.39 | ) | (1.70 | ) | ||||||||||
Paid-in Capital from Redemption Fees(a) | 0.00 | (b) | 0.00 | 0.00 | (b) | 0.00 | 0.00 | |||||||||||||
Net asset value, end of year | $ | 13.76 | $ | 14.32 | $ | 14.08 | $ | 12.70 | $ | 14.62 | ||||||||||
Total Return | 1.54 | % | 7.16 | % | 12.46 | % | (3.32 | )% | 5.12 | % | ||||||||||
RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (in 000s) | $ | 34,867 | $ | 37,730 | $ | 30,592 | $ | 25,615 | $ | 26,857 | ||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Net investment income | 1.66 | % | 1.38 | % | 1.53 | % | 1.61 | % | 1.45 | % | ||||||||||
Net expenses | 1.00 | % | 1.00 | % | 1.00 | % | 1.10 | % | 1.10 | % | ||||||||||
Gross expenses (c) | 1.20 | % | 1.20 | % | 1.20 | % | 1.27 | % | 1.30 | % | ||||||||||
Portfolio turnover rate | 53 | % | 64 | % | 60 | % | 70 | % | 87 | % |
(a) | Calculated based on average shares outstanding during each year. |
(b) | Less than $0.005 per share. |
(c) | Reflects the expense ratio excluding any waivers and/or reimbursements. |
The accompanying notes to financial statements are an integral part of these financial statements.
40 | www.cornercapfunds.com |
Financial Highlights
CornerCap Small-Cap Value Fund - Investor Shares
Selected data for each share of beneficial interest outstanding throughout the years indicated: | Year Ended March 31, 2019 | Year Ended March 31, 2018 | Year Ended March 31, 2017 | Year Ended March 31, 2016 | Year Ended March 31, 2015 | |||||||||||||||
INVESTOR SHARES | ||||||||||||||||||||
PER SHARE OPERATING PERFORMANCE | ||||||||||||||||||||
Net asset value, beginning of year | $ | 15.27 | $ | 16.68 | $ | 14.00 | $ | 15.55 | $ | 16.25 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(a) | 0.08 | 0.06 | 0.04 | 0.05 | 0.03 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.38 | ) | 0.90 | 3.38 | (0.60 | ) | 1.21 | |||||||||||||
Total Income/(Loss) from Investment Operations | (0.30 | ) | 0.96 | 3.42 | (0.55 | ) | 1.24 | |||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||
Distributions from net investment income | (0.04 | ) | (0.01 | ) | (0.03 | ) | (0.04 | ) | (0.02 | ) | ||||||||||
Distributions from net realized gain on investments | (1.81 | ) | (2.36 | ) | (0.71 | ) | (0.96 | ) | (1.92 | ) | ||||||||||
Total Dividends and Distributions to Shareholders | (1.85 | ) | (2.37 | ) | (0.74 | ) | (1.00 | ) | (1.94 | ) | ||||||||||
Paid-in Capital from Redemption Fees(a) | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | 0.00 | |||||||||||
Net asset value, end of year | $ | 13.12 | $ | 15.27 | $ | 16.68 | $ | 14.00 | $ | 15.55 | ||||||||||
Total Return | (0.99 | )% | 5.64 | % | 24.40 | % | (3.29 | )% | 8.21 | % | ||||||||||
RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (in 000s) | $ | 85,230 | $ | 84,789 | $ | 77,455 | $ | 76,053 | $ | 85,177 | ||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Net investment income | 0.55 | % | 0.36 | % | 0.26 | % | 0.38 | % | 0.17 | % | ||||||||||
Net expenses | 1.30 | % | 1.30 | % | 1.30 | % | 1.30 | % | 1.30 | % | ||||||||||
Gross expenses | 1.30 | % | 1.30 | % | 1.30 | % | 1.45 | %(c) | 1.50 | %(c) | ||||||||||
Portfolio turnover rate | 147 | % | 117 | % | 129 | % | 144 | % | 112 | % |
(a) | Calculated based on average shares outstanding during each year. |
(b) | Less than $0.005 per share. |
(c) | Reflects the expense ratio excluding any waivers and/or reimbursements. |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 41 |
Financial Highlights
CornerCap Small-Cap Value Fund - Institutional Shares
Selected data for each share of beneficial interest outstanding throughout the periods indicated: | Year Ended March 31, 2019 | Year Ended March 31, 2018 | Year Ended March 31, 2017 | December 29, 2015 (a) Through March 31, 2016 | ||||||||||||
INSTITUTIONAL SHARES | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE | ||||||||||||||||
Net asset value, beginning of period | $ | 15.30 | $ | 16.70 | $ | 14.02 | $ | 14.03 | ||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||
Net investment income(b) | 0.13 | 0.11 | 0.09 | 0.04 | ||||||||||||
Net realized and unrealized gain (loss) on investments | (0.39 | ) | 0.91 | 3.38 | (0.05 | ) | ||||||||||
Total Income/(Loss) from Investment Operations | (0.26 | ) | 1.02 | 3.47 | (0.01 | ) | ||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Distributions from net investment income | (0.08 | ) | (0.06 | ) | (0.08 | ) | – | |||||||||
Distributions from net realized gain on investments | (1.81 | ) | (2.36 | ) | (0.71 | ) | – | |||||||||
Total Dividends and Distributions to Shareholders | (1.89 | ) | (2.42 | ) | (0.79 | ) | – | |||||||||
Paid-in Capital from Redemption Fees(b) | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | 0.00 | |||||||||
Net asset value, end of period | $ | 13.15 | $ | 15.30 | $ | 16.70 | $ | 14.02 | ||||||||
Total Return | (0.68 | )% | 5.96 | % | 24.74 | % | (0.07 | )%(d) | ||||||||
RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||||||
Net assets, end of period (in 000s) | $ | 34,161 | $ | 37,788 | $ | 28,523 | $ | 21,049 | ||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||
Net investment income | 0.84 | % | 0.67 | % | 0.57 | % | 1.33 | %(e) | ||||||||
Net expenses | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | %(e) | ||||||||
Gross expenses | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | %(e) | ||||||||
Portfolio turnover rate | 147 | % | 117 | % | 129 | % | 144 | %(d) |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during each year. |
(c) | Less than $0.005 per share. |
(d) | Not annualized. |
(e) | Annualized. |
The accompanying notes to financial statements are an integral part of these financial statements.
42 | www.cornercapfunds.com |
Financial Highlights
CornerCap Large/Mid-Cap Value Fund
Selected data for each share of beneficial interest outstanding throughout the years indicated: | Year Ended March 31, 2019 | Year Ended March 31, 2018 | Year Ended March 31, 2017 | Year Ended March 31, 2016 | Year Ended March 31, 2015 | |||||||||||||||
PER SHARE OPERATING PERFORMANCE | ||||||||||||||||||||
Net asset value, beginning of year | $ | 13.10 | $ | 12.56 | $ | 10.80 | $ | 13.75 | $ | 13.87 | ||||||||||
INCOME/(LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(a) | 0.19 | 0.13 | 0.13 | 0.13 | 0.15 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.21 | ) | 1.39 | 1.73 | (1.07 | ) | 0.91 | |||||||||||||
Total Income/(Loss) from Investment Operations | (0.02 | ) | 1.52 | 1.86 | (0.94 | ) | 1.06 | |||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||
Distributions from net investment income | (0.15 | ) | (0.10 | ) | (0.10 | ) | (0.11 | ) | (0.14 | ) | ||||||||||
Distributions from net realized gain on investments | (0.63 | ) | (0.88 | ) | – | (1.90 | ) | (1.04 | ) | |||||||||||
Total Dividends and Distributions to Shareholders | (0.78 | ) | (0.98 | ) | (0.10 | ) | (2.01 | ) | (1.18 | ) | ||||||||||
Paid-in Capital from Redemption Fees(a) | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | ||||||||||
Net asset value, end of year | $ | 12.30 | $ | 13.10 | $ | 12.56 | $ | 10.80 | $ | 13.75 | ||||||||||
Total Return | 0.32 | % | 12.04 | % | 17.31 | % | (6.29 | )% | 7.46 | % | ||||||||||
RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (in 000s) | $ | 35,907 | $ | 31,547 | $ | 25,071 | $ | 13,170 | $ | 11,613 | ||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Net investment income | 1.45 | % | 1.02 | % | 1.14 | % | 1.07 | % | 1.03 | % | ||||||||||
Net expenses | 1.00 | % | 1.00 | % | 1.00 | % | 1.20 | % | 1.20 | % | ||||||||||
Gross expenses (c) | 1.30 | % | 1.30 | % | 1.30 | % | 1.44 | % | 1.50 | % | ||||||||||
Portfolio turnover rate | 81 | % | 89 | % | 82 | % | 97 | % | 125 | % |
(a) | Calculated based on average shares outstanding during each year. |
(b) | Less than $0.005 per share. |
(c) | Reflects the expense ratio excluding any waivers and/or reimbursements. |
The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report | March 31, 2019 | 43 |
Notes to Financial Statements
March 31, 2019
1. ORGANIZATION
The CornerCap Group of Funds was organized on January 6, 1986 as a Massachusetts Business Trust (the “Trust”) and is registered under the Investment Company Act of 1940 as a diversified open-end management investment company. The Trust currently consists of the following three series (each, a “Fund” and, together, the “Funds”): CornerCap Balanced Fund, CornerCap Large/Mid-Cap Value Fund and CornerCap Small-Cap Value Fund. CornerCap Balanced Fund and CornerCap Large/Mid-Cap Value Fund currently offer Investor Shares and CornerCap Small-Cap Value Fund currently offers Investor Shares and Institutional Shares.
The investment objective of the CornerCap Balanced Fund is long-term capital appreciation and current income. CornerCap Small-Cap Value Fund’s investment objective is long-term capital appreciation with a secondary objective of generating income from dividends or interest on securities, whereas the CornerCap Large/Mid-Cap Value Fund’s investment objective is long-term capital appreciation.
2. SIGNIFICANT ACCOUNTING POLICIES
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services – Investment Companies”. The following is a summary of significant accounting policies consistently followed by the Funds. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
Accounting Estimates – In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Security Valuation – Portfolio securities including common stocks, corporate bonds, municipal bonds, exchange traded funds (ETFs), and U.S. Government and Agency obligations that are listed on national securities exchanges or the NASDAQ National Market System are valued at the last sale price or official close as of 4:00 p.m. Eastern time or, in the absence of recorded sales, at the closing bid price on such exchanges or such system. Based on obtaining active market quotes, common stocks and exchange traded funds are classified as Level 1 of the fair value hierarchy. Corporate bonds, municipal bonds, certificates of deposit and U.S. Government and Agency obligations are classified as Level 2 of the fair value hierarchy, and are priced based upon valuations provided by a recognized independent, third party pricing agent. Third-party pricing agents value these securities by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Such methodologies generally consider such factors as security prices, yields, maturities, call features, ratings, and developments relating to specific securities in arriving at valuations. Unlisted securities that are not included on such exchanges or systems are valued at the quoted bid prices on the over-the counter market. Shares of a registered investment company, including money market funds, that are not traded on an exchange are valued at that investment company’s net asset value per share and are classified as Level 1 within the fair value hierarchy. Securities and other assets for which market quotations are not readily available are valued at fair value as determined in good faith by the Adviser under procedures established
44 | www.cornercapfunds.com |
Notes to Financial Statements
March 31, 2019
by and under the general supervision and responsibility of the Funds’ Board of Trustees and will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used. The ability of issuers of debt securities held by the Funds to meet their obligations may be affected by economic and political developments.
Security Transactions, Investment Income and Other – Security transactions are recorded on the trade date. Realized gains and losses on sales of investments are calculated on the identified cost basis. Withholding taxes on foreign dividends have been provided in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Discounts and premiums on securities purchased are amortized over the lives of the respective securities, using the effective interest method. In the event of a security in default, a portion of interest receivable that was once recognized as interest income is written off and treated as a reduction of interest income.
REITs – Each Fund has made certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REIT’s taxable earnings and profits resulting in the excess portion of such dividends being designated as a return of capital. Each Fund may include the gross dividends from such REITs in income or may utilize estimates of any potential REIT dividend reclassifications in each Fund’s annual distributions to shareholders and, accordingly, a portion of each Fund’s distributions may be designated as a return of capital, require reclassification, or be under distributed on an excise basis and subject to excise tax. Any reclassifications are treated as permanent book to tax differences and are reclassified within the components of net assets on the Statement of Assets and Liabilities, rather than reclassifying such amounts on the Statements of Operations.
Federal Income Taxes – For Federal income tax purposes, the Funds currently qualify, and intend to remain qualified, as regulated investment companies (“RICs”) under the provisions of Subchapter M of the Internal Revenue Code of 1986 (“Code”), as amended, by complying with the requirements applicable to RICs and by distributing their investment company taxable net income including any excess realized gain which has not been offset by capital loss carryforwards, if any, to their shareholders. Accordingly, no provision for federal income or excise taxes has been made. As of and during the year ended March 31, 2019, the Funds did not have a liability for any unrecognized tax benefits. The Funds file U.S. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year, the Funds did not incur any interest or penalties.
Distributions to Shareholders – Distributions from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually. Income and capital gains distributions are determined in accordance with income tax regulations, which may differ from GAAP. Distributions to shareholders are recorded on the ex-dividend date.
Income and Expense Allocation – The Trust accounts separately for the assets, liabilities and operations of each Fund. Expenses that are directly attributable to more than one investment portfolio are allocated among the respective Funds in an equitable manner.
Annual Report | March 31, 2019 | 45 |
Notes to Financial Statements
March 31, 2019
CornerCap Small-Cap Value Fund’s class specific expenses are charged to the operations of that class of shares. Income and expenses (other than expenses attributable to a specific class) and realized and unrealized gains or losses on investments are allocated to each class of shares based on the class’ respective net assets to the total net assets of the Fund.
Fair Value Measurements – A three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.
Various inputs are used in determining the value of each Fund’s investments as of the reporting period end. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within 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 in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:
Level 1 – Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date;
Level 2 – Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and
Level 3 – Significant unobservable prices or inputs (including each Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.
The following is a summary of investments based on the inputs used to value the Funds’ investments as of March 31, 2019:
46 | www.cornercapfunds.com |
Notes to Financial Statements
March 31, 2019
CornerCap Balanced Fund:
Valuation Inputs | ||||||||||||||||
Investments at Value* | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 20,709,116 | $ | – | $ | – | $ | 20,709,116 | ||||||||
Exchange Traded Fund | 729,985 | – | – | 729,985 | ||||||||||||
Government Bond | – | 1,537,344 | – | 1,537,344 | ||||||||||||
Corporate Non-Convertible Bonds | – | 10,844,965 | – | 10,844,965 | ||||||||||||
Municipal Bonds | – | 151,436 | – | 151,436 | ||||||||||||
Short-Term Investments | 792,769 | – | – | 792,769 | ||||||||||||
Total | $ | 22,231,870 | $ | 12,533,745 | $ | – | $ | 34,765,615 |
CornerCap Small-Cap Value Fund:
Valuation Inputs | ||||||||||||||||
Investments at Value* | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 117,186,811 | $ | – | $ | – | $ | 117,186,811 | ||||||||
Total | $ | 117,186,811 | $ | – | $ | – | $ | 117,186,811 |
CornerCap Large/Mid-Cap Value Fund:
Valuation Inputs | ||||||||||||||||
Investments at Value* | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 35,464,476 | $ | – | $ | – | $ | 35,464,476 | ||||||||
Short-Term Investments | 412,567 | – | – | 412,567 | ||||||||||||
Total | $ | 35,877,043 | $ | – | $ | – | $ | 35,877,043 |
* | See Schedule of Investments for industry classification |
For the year ended March 31, 2019, the Funds did not have significant unobservable inputs (Level 3) used in determining fair value of any investments. Therefore, a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value is not applicable. The Funds did not hold any derivative instruments at any time during the year.
3. SHARES OF BENEFICIAL INTEREST
On March 31, 2019, there was an unlimited number of no par-value shares of beneficial interest authorized for each Fund. Subject to certain exceptions, each Fund charges a 1% redemption fee, calculated as a percentage of the amount redeemed, on redemptions (sales or exchanges) made within sixty days of initial purchase of shares of the applicable Fund. The redemption fees charged during the period are disclosed on the Statements of Changes in Net Assets.
Transactions in shares of beneficial interest were as follows:
Annual Report | March 31, 2019 | 47 |
Notes to Financial Statements
March 31, 2019
CornerCap Balanced Fund:
Year Ended March 31, 2019 | Year Ended March 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares Sold | 346,875 | $ | 4,839,377 | 547,300 | $ | 7,872,858 | ||||||||||
Shares Issued in Reinvestment of Dividends | 137,076 | 1,781,994 | 126,489 | 1,853,057 | ||||||||||||
Total | 483,951 | 6,621,371 | 673,789 | 9,725,915 | ||||||||||||
Less Shares Redeemed | (584,672 | ) | (8,236,572 | ) | (213,094 | ) | (3,100,550 | ) | ||||||||
Net increase (decrease) | (100,721 | ) | $ | (1,615,201 | ) | 460,695 | $ | 6,625,365 |
CornerCap Small-Cap Value Fund:
Year Ended March 31, 2019 | Year Ended March 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares Sold | ||||||||||||||||
Investor Shares | 1,281,384 | $ | 18,341,239 | 1,023,656 | $ | 16,458,018 | ||||||||||
Institutional Shares | 447,531 | 6,373,047 | 578,260 | 9,377,080 | ||||||||||||
Shares Issued in Reinvestment of Dividends | ||||||||||||||||
Investor Shares | 818,646 | 9,987,009 | 722,570 | 11,136,457 | ||||||||||||
Institutional Shares | 307,887 | 3,767,781 | 288,175 | 4,460,754 | ||||||||||||
Total | 2,855,448 | 38,469,076 | 2,612,661 | 41,432,309 | ||||||||||||
Less Shares Redeemed | ||||||||||||||||
Investor Shares | (1,156,704 | ) | (16,665,251 | ) | (839,621 | ) | (13,668,668 | ) | ||||||||
Institutional Shares | (626,822 | ) | (9,244,895 | ) | (105,466 | ) | (1,805,923 | ) | ||||||||
Net increase | 1,071,922 | $ | 12,558,930 | 1,667,574 | $ | 25,957,718 |
CornerCap Large/Mid-Cap Value Fund:
Year Ended March 31, 2019 | Year Ended March 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares Sold | 826,236 | $ | 10,593,881 | 654,843 | $ | 8,722,040 | ||||||||||
Shares Issued in Reinvestment of Dividends | 181,685 | 2,069,311 | 155,355 | 2,078,414 | ||||||||||||
Total | 1,007,921 | 12,663,192 | 810,198 | 10,800,454 | ||||||||||||
Less Shares Redeemed | (496,523 | ) | (6,362,688 | ) | (399,330 | ) | (5,403,682 | ) | ||||||||
Net increase | 511,398 | $ | 6,300,504 | 410,868 | $ | 5,396,772 |
4. FEDERAL TAX INFORMATION
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 Funds. Distributions from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually.
The tax character of distributions paid for the years ended March 31, 2019 and March 31, 2018 were as follows:
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Notes to Financial Statements
March 31, 2019
CornerCap Balanced Fund | ||||||||
Distributions Paid From: | 2019 | 2018 | ||||||
Ordinary Income | $ | 850,014 | $ | 1,136,509 | ||||
Long-term capital gains | 932,561 | 717,254 | ||||||
Total | $ | 1,782,575 | $ | 1,853,763 |
CornerCap Small-Cap Value Fund | ||||||||
Distributions Paid From: | 2019 | 2018 | ||||||
Ordinary Income | $ | 5,822,961 | $ | 8,724,533 | ||||
Long-term capital gains | 8,094,271 | 7,083,255 | ||||||
Total | $ | 13,917,232 | $ | 15,807,788 |
CornerCap Large/Mid-Cap Value Fund | ||||||||
Distributions Paid From: | 2019 | 2018 | ||||||
Ordinary Income | $ | 1,056,093 | $ | 1,535,980 | ||||
Long-term capital gains | 1,013,218 | 542,434 | ||||||
Total | $ | 2,069,311 | $ | 2,078,414 |
Equalization debits not included in the distribution for the CornerCap Small-Cap Value Fund were as follows:
Ordinary Income | Long-Term Capital Gain | Total | ||||||||||
2019 | $ | – | $ | 195,240 | $ | 195,240 |
For the year ended March 31, 2019, each Fund recorded the following reclassifications to the accounts listed below. The reclassifications were primarily as a result of equalization.
Distributable Earnings | Paid-in-Capital | |||||||
CornerCap Small-Cap Value Fund | $ | (195,240 | ) | $ | 195,240 |
As of March 31, 2019, the components of distributable earnings on a tax basis were as follows:
CornerCap Balanced Fund | CornerCap Small-Cap Value Fund | CornerCap Large/Mid-Cap Value Fund | ||||||||||
Undistributed ordinary income | $ | 368,612 | $ | – | $ | 161,455 | ||||||
Undistributed long-term gain | 376,827 | – | 418,969 | |||||||||
Capital and other losses | – | (4,851,568 | ) | – | ||||||||
Net unrealized appreciation on investments | 1,007,029 | 1,083,859 | 1,138,948 | |||||||||
Total | $ | 1,752,468 | $ | (3,767,709 | ) | $ | 1,719,372 |
Annual Report | March 31, 2019 | 49 |
Notes to Financial Statements
March 31, 2019
The difference between components of distributable earnings on a tax basis and the amounts reflected in the Statement of Assets and Liabilities are primarily due to wash sales, real estate investment trust investments and return of capital on equity securities.
As of March 31, 2019, the Funds had no capital loss carryforwards to reduce the Fund’s taxable income arising from future net realized gains on investments.
For tax purposes, the current year post-October loss deferral was $4,851,568 (realized during the period November 1, 2018 through March 31, 2019) for CornerCap Small-Cap Value Fund. This loss will be recognized for tax purposes on the first business day of the Fund’s next fiscal year, April 1, 2019.
The amount of net unrealized appreciation (depreciation) and the cost of investment securities for tax purposes, including short-term securities as of March 31, 2019, were as follows:
CornerCap Balanced Fund | CornerCap Small-Cap Value Fund | CornerCap Large/Mid-Cap Value Fund | ||||||||||
Gross unrealized appreciation (excess of value over tax cost) | $ | 2,133,312 | $ | 9,843,138 | $ | 2,987,999 | ||||||
Gross unrealized depreciation (excess of tax cost over value) | (1,126,283 | ) | (8,759,279 | ) | (1,849,051 | ) | ||||||
Net unrealized appreciation | $ | 1,007,029 | $ | 1,083,859 | $ | 1,138,948 | ||||||
Cost of investments for income tax purposes | $ | 33,758,586 | $ | 116,102,952 | $ | 34,738,095 |
5. INVESTMENT ADVISORY AND OTHER RELATED PARTY TRANSACTIONS
A. Each of the Funds has an Investment Advisory Agreement with CornerCap Investment Counsel (the “Adviser”), pursuant to which the Adviser receives an Advisory Fee from the Fund, computed daily and payable monthly, at an annual rate of 0.90% of the Fund’s average daily net assets. Under the terms of each Advisory Agreement, the Adviser manages the Fund’s investments subject to the approval of the Board of Trustees. The amount of expenses paid to the Adviser are reflected in the Statements of Operations and the amount of current liabilities are reflected in the Statements of Assets and Liabilities.
In addition, each Fund and the Adviser have entered into an Operating Services Agreement whereby the Adviser receives an Operating Services Fee, computed daily and payable monthly, at an annual rate of 0.30%, 0.40%, 0.10% and 0.40% of the average daily net assets of the CornerCap Balanced Fund, CornerCap Small-Cap Value Fund – Investor Shares, CornerCap Small-Cap Value Fund – Institutional Shares and CornerCap Large/Mid-Cap Value Fund, respectively. The amounts of expenses paid to the Adviser as Operating Services Fees are reflected in the Statements of Operations and the amount of current liabilities are reflected in the Statements of Assets and Liabilities.
The Adviser has contractually agreed to waive fees and reimburse each of the Funds so as to limit each Fund’s “Total Annual Fund Operating Expenses” (exclusive of all taxes, interest, brokerage fees and commissions, acquired fund fees and expenses, and extraordinary expenses) as reflected in the following table:
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Notes to Financial Statements
March 31, 2019
Fund | Total Annual Fund Operating Expense Limitation |
CornerCap Balanced Fund | 1.00% |
CornerCap Small-Cap Value Fund – Investor Shares | 1.30% |
CornerCap Large/Mid-Cap Value Fund | 1.00% |
The contractual agreements cannot be terminated prior to August 1, 2019, without the Board of Trustees’ approval. For the year ended March 31, 2019 the Adviser waived fees and reimbursed expenses for the CornerCap Balanced Fund and CornerCap Large/Mid-Cap Value Fund of $71,195 and $103,864, respectively. These fees are not subject to recoupment by the Adviser.
B. The Funds and the Adviser have entered into the following agreements whereby the Adviser pays any associated fees from the Operating Services Fees it receives from the Funds to Fund operational service providers pursuant to the following agreements:
1) Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) (“Atlantic”) provides fund accounting, fund administration services and transfer agency services to each Fund. Pursuant to an Atlantic services agreement, the Adviser pays Atlantic customary fees for its services from the Operating Services Fee it receives from the Funds. Atlantic also provides certain shareholder report production, and EDGAR conversion and filing services;
2) Foreside Fund Services, LLC serves as each Fund’s distributor (the “Distributor”). The Distributor is not affiliated with the Adviser or Atlantic or their affiliates.
In addition, the Adviser pays all other operating expenses of each Fund, as outlined in the Operating Services Agreement.
Certain trustees and officers of the Funds are also directors and officers of the Adviser.
6. PURCHASES AND SALES OF SECURITIES
Investment transactions for the year ended March 31, 2019, excluding U.S. Government and Agency securities and shortterm investments, were as follows:
Purchases | Sales | |||||||
CornerCap Balanced Fund | $ | 18,476,636 | $ | 20,148,085 | ||||
CornerCap Small-Cap Value Fund | 178,553,415 | 177,604,695 | ||||||
CornerCap Large/Mid-Cap Value Fund | 32,409,756 | 27,293,089 |
Annual Report | March 31, 2019 | 51 |
Notes to Financial Statements
March 31, 2019
Investment transactions in U.S. Government and Agency securities for the year ended March 31, 2019, were as follows:
Purchases | Sales | |||||||
CornerCap Balanced Fund | $ | – | $ | 416,148 |
7. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under section 2(a)(9) of the Investment Company Act of 1940. As of March 31, 2019, Charles Schwab & Co. held approximately 59.74%, 75.15% and 69.99% of the CornerCap Balanced Fund, CornerCap Small-Cap Value Fund, and CornerCap Large/Mid-Cap Value Fund, respectively. The shares are held under omnibus accounts (whereby the transactions of two or more shareholders are combined and carried in the name of the originating broker rather than designated separately).
8. INDEMNIFICATIONS
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that may contain general indemnification clauses which may permit indemnification to the extent permissible under applicable law. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
9. RECENT ACCOUNTING PRONOUNCEMENTS
In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”) which includes amendments intended to improve the effectiveness of disclosures in the notes to financial statements. For example, ASU 2018-13 includes additional disclosures regarding the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and clarifications to the narrative description of measurement uncertainty disclosures. ASU 2018-13 is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted and the Funds have adopted ASU 2018-13 within these financial statements.
In September 2018, the Securities and Exchange Commission released Final Rule 33-10532 captioned “Disclosure Update and Simplification,” which includes: (i) an amendment to require presentation of the total, rather than the components, of distributable earnings on the Statements of Assets and Liabilities; and (ii) an amendment to require presentation of the total, rather than the components, of distributions to shareholders, except for tax return of capital distributions, on the Statements of Changes in Net Assets. The amendments also removed the requirement for parenthetical disclosure of undistributed net investment income on the Statements of Changes in Net Assets. These changes were effective November 5, 2018. These amendments are reflected in the Funds’ financial statements for the year ended March 31, 2019.
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Notes to Financial Statements
March 31, 2019
10. SUBSEQUENT EVENTS
Subsequent events occurring after the date of this report through the date these financial statements were issued have been evaluated for potential impact and the Funds have had no such events.
Annual Report | March 31, 2019 | 53 |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of
CornerCap Group of Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of CornerCap Group of Funds, comprising CornerCap Balanced Fund, CornerCap Small-Cap Value Fund, and CornerCap Large/Mid-Cap Value Fund (the “Funds”), as of March 31, 2019, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, including the related notes, and the financial highlights for each of the five years in the period then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Funds’ auditor since 2004.
COHEN & COMPANY, LTD.
Cleveland, Ohio
May 23, 2019
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Additional Information
March 31, 2019 (Unaudited)
1. PROXY VOTING POLICY
A copy of the policies and procedures the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling the Funds toll-free at (888) 813-8637 or on the Securities and Exchange Commission’s (SEC) website at http://www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available without charge, upon request, by calling the Funds toll-free at (888) 813-8637 and on the SEC’s website at http://www.sec.gov.
2. AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULE
Each of the Funds files its complete schedule of positions with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q is available on the SEC website at http://www.sec.gov. The Funds’ Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. If any of the Funds make the information on Form N-Q available to shareholders on its website or upon request, the information may be obtained by calling the Funds toll-free at (888) 813-8637.
3. COMPENSATION OF TRUSTEES
No interested Trustee, officer, or employee of the Funds receives any compensation from the Funds or Adviser for serving as an officer or Trustee of the Funds. Each Independent Trustee receives $5,000 for each Trustees meeting attended in-person and $3,000 for each Trustees meeting attended by telephone. Members of the Audit Committee are paid $1,500 per Audit Committee meeting, and the Audit Committee Chairman is paid $3,000 per Audit Committee meeting. The Audit Committee will normally meet twice a year. Independent Trustee and Audit Committee compensation is paid by the Adviser.
4. TAX DESIGNATIONS
For federal income tax purposes, dividends from short-term capital gains are classified as ordinary income. The Funds designate the following for federal income tax purposes for distributions made during the calendar year ended December 31, 2018:
CornerCap Balanced Fund | CornerCap | CornerCap | |
Dividends Received Deduction | 39.54% | 34.03% | 64.31% |
Qualified Dividend Income | 42.80% | 33.55% | 68.34% |
Qualified Interest Income | 33.77% | 0.00% | 0.00% |
Short Term Dividends Exempt from U.S. tax | 33.47% | 89.78% | 60.81% |
Pursuant to Section 852(b)(3) of the Internal Revenue Code, CornerCap Balanced Fund, CornerCap Small-Cap Value Fund and CornerCap Large/Mid-Cap Value Fund designated $932,561, $8,289,511 and $1,013,218, as long-term capital gain dividends, respectively.
Annual Report | March 31, 2019 | 55 |
Additional Information
March 31, 2019 (Unaudited)
5. TRUSTEES AND OFFICERS
The business affairs of the Funds are managed under the direction of the Funds’ Board of Trustees in accordance with the laws of the State of Massachusetts. Information pertaining to the Trustees and Officers of the Funds are set forth below. Trustees who are not deemed to be “interested persons” of the Trust as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), are referred to as “Independent Trustees.” Trustees who are deemed to be interested persons of the Trust as defined in the 1940 Act are referred to as “Interested Trustees”. The Funds’ Statement of Additional Information includes additional information about the trustees and is available upon request by calling toll-free 1-888-813-8637.
INTERESTED TRUSTEES | ||||
Name, Address and Year of Birth | Position with the Trust, Term of Office and Tenure | Number of Funds in Complex Overseen by Trustee | Principal Occupation(s) during past 5 years | Other Trusteeships/Directorships by Trustee |
Thomas E. Quinn The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309 Born: 1945 | Trustee, Chairman of the Board, President, Chief Financial Officer, and Treasurer since 1992 | 3 | Chief Executive Officer, CornerCap Investment Counsel; Vice-Chairman, Church Investment Group (non-profit) (2013-present). | None |
INDEPENDENT TRUSTEES | ||||
Name, Address* and Year of Birth | Position with the Trust, Term of Office and Tenure | Number of Funds in Complex Overseen by Trustee | Principal Occupation(s) during past 5 years | Other Trusteeships/Directorships by Trustee |
Richard L. Boger Born: 1946 | Trustee since 1992 | 3 | President & CEO, Lex-Tek International, Inc. (a financial services and software consulting company), (1991-present); Managing Trustee, Boger-Owen FNDN (2012-present); Business Manager, Owen Holdings, LLLP (2003-2013); Heathland Holdings, LLP; and General Partner, Shawnee Meadow Holdings, LLLP (real estate and related companies) (2004-present). | Director, Gray Television, Inc. (1991-present). |
Laurin M. McSwain Born: 1951 | Trustee since 1994 | 3 | Attorney, Lefkoff, Duncan, Grimes, McSwain & Hass, (2003-present). | None |
Leslie W. Gates Born: 1955 | Trustee since 2006 | 3 | Retired, 2005. Partner, Williams Benator & Libby, LLP (CPA firm) (1989-2004). | None |
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Additional Information
March 31, 2019 (Unaudited)
INDEPENDENT TRUSTEES | ||||
Name, Address* and Year of Birth | Position with the Trust, Term of Office and Tenure | Number of Funds in Complex Overseen by Trustee | Principal Occupation(s) during past 5 years | Other Trusteeships/Directorships by Trustee |
G. Harry Durity Born: 1946 | Trustee 1992-2004, since 2010 | 3 | Senior Advisor, Consultant, New Mountain Capital, LLC (asset management company) (2005-present); Director, Overland Solutions, Inc. (audit services) (2009-2014); Director, Alexander Mann Solutions (Private company) (2014-present). | Former Director, National Medical Health Card; Former Director, WebSite Pros, Inc. |
* | All Independent Trustees can be contacted via the Funds at: |
P.O. Box 588, Portland, ME 04112.
OFFICERS | ||||
Name, Address and Year of Birth | Position with the Trust, Term of Office and Tenure | Number of Funds in Complex Overseen by Trustee | Principal Occupation(s) during past 5 years | Other Trusteeships/Directorships by Trustee |
Richard T. Bean The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309 Born: 1962 | Vice President of the Funds since 1996 | N/A | Vice President of the Funds and Portfolio Manager, CornerCap Investment Counsel. | N/A |
John A. Hackney The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309 Born: 1966 | Chief Compliance Officer since 2004 and Secretary of the Funds since 1999 | N/A | Chief Compliance Officer, CornerCap Investment Counsel. | Chief Compliance Officer, Church Investment Group (non-profit) |
Gene A. Hoots The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309 Born: 1939 | Vice President of the Funds since 1992 | N/A | Vice President of the Funds and Chairman Emeritus of CornerCap Investment Counsel. | N/A |
Annual Report | March 31, 2019 | 57 |
(a) | Included as part of the report to shareholders under Item 1. |
(b) | Not applicable. |
By: | /s/ Thomas E. Quinn | |
Thomas E. Quinn | ||
President | ||
Date: | May 23, 2019 |
By: | /s/ Thomas E. Quinn | |
Thomas E. Quinn | ||
President (Principal Executive Officer) and Treasurer (Principal Financial Officer) | ||
Date: | May 23, 2019 |