As filed with the Securities and Exchange Commission on June 3, 2021
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04581
CORNERCAP GROUP OF FUNDS
The Peachtree, Suite 1700
1355 Peachtree Street NE
Atlanta, GA 30309
Zac Tackett
Atlantic Fund Services, LLC
Three Canal Plaza, Suite 600
Portland, ME 04101
Registrant’s telephone number, including area code: (404) 870-0700
Date of fiscal year end: March 31
Date of reporting period: April 1, 2020 – March 31, 2021
ITEM 1. REPORT TO STOCKHOLDERS.
Annual
Report
March
31,
2021
CornerCap
Small-Cap
Value
Fund
Table
of
Contents
Manager’s
Report
to
Shareholders
(Unaudited)
1
Fund
Expenses
(Unaudited)
7
Schedule
of
Investments
9
Statement
of
Assets
and
Liabilities
19
Statement
of
Operations
20
Statement
of
Changes
in
Net
Assets
21
Financial
Highlights
22
Notes
to
Financial
Statements
24
Report
of
Independent
Registered
Public
Accounting
Firm
31
Additional
Information
(Unaudited)
32
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2021
Annual
Report
I
March
31,
2021
1
Dear
Shareholders,
By
last
August,
we
believe
historically
low
rates,
combined
with
fears
of
recession
from
trade
wars
(2018)
and
the
pandemic
(2020),
had
conspired
to
create
extreme,
unsustainable
positions
in
certain
segments
of
the
equity
markets.
For
long-term
investors,
we
saw
risk
to
concentrated
and
imbalanced
portfolios.
We
made
both
tactical
and
strategic
steps
during
this
period
to
position
shareholders
for
long-term
opportunity.
Tactically,
we
gave
greater
emphasis
to
valuation
over
other
investment
styles
like
growth
and
momentum.
Strategically,
we
continued
to
refine
our
research
system
with
deeper
analysis
within
what
we
call
“peer
groups”
(i.e.,
how
we
group
similar
stocks
for
improved
comparisons)
and
earnings
power
during
periods
of
dislocation
(i.e.,
emphasizing
long-term
earnings
when
near-term
earnings
are
meaningfully
dampened).
We
believe
our
actions
will
benefit
shareholders
as
vaccines
emerge
and
economies
re-open
from
the
pandemic.
These
benefits
may
take
time
to
play
out,
consistent
with
a
long-term
view.
MANAGEMENT
DISCUSSION
OF
FUND
PERFORMANCE
Broadly,
market
activity
since
last
September
has
been
encouraging
for
the
long
term,
although
mixed
in
the
near
term:
For
the
period
from
March
31,
2020
to
early
January,
our
strategy
struggled
relative
to
the
Value
benchmark.
The
stocks
initially
surging
in
the
Value
index
were
not
necessarily
the
cheaper
or
higher
quality
ones,
in
our
view.
The
winning
profile
tended
to
be
stocks
with
High
Forecasted
Growth
and
Improving
Analyst
Price
Targets,
or
stocks
with
Highest
Short
Interest,
Highest
Valuations,
and
Highest
Debt
Balances.
We
consider
these
characteristics
to
be
higher
risk
or
unattractive
for
long-term
performance.
In
our
view,
investors
were
willing
to
take
excess
risk
as
certain
sectors
surged
in
anticipation
of
re-opening.
Importantly,
risk-seeking
may
have
peaked
in
January
as
“meme”
stocks
like
GameStop
made
national
headlines.
While
stocks
with
high
short
interest
hit
euphoria
in
January,
they
have
frankly
been
driving
index
performance
since
mid-2020.
•
Re-opening
has
generally
favored
diversified
rather
than
concentrated
portfolios.
Portfolios
skewed
to
Big
Tech
and
Highest
Growth
had
dominated
as
fears
of
trade
war
and
pandemic
grew;
with
re-
opening,
a
broader
group
of
stocks
have
led.
•
“Value”
stocks
also
began
to
lead,
which
investors
might
expect
in
recovery—but
the
profile
of
those
leaders
has
evolved
from
lower
quality
(less
profitable,
weaker
balance
sheets)
to
better
quality,
in
our
view.
This
migration
should
help
our
strategy.
•
Concern
over
rising
rates
since
early
February
has
encouraged
investors
to
sell
Highest
Growth
stocks
and
rate-sensitive
sectors
like
utilities
and
home
builders.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2021
2
www.cornercapfunds.com
In
fact,
high
short
interest
sat
atop
our
factor
list
as
best
performing
for
the
trailing
2
and
3
quarter
periods.
It
is
a
factor
we
are
significantly
underweight
relative
to
our
benchmark,
because
it
tends
to
indicate
longer
term
risk.
The
mainstays
of
the
Fundametrics
research
process
got
stronger
as
we
moved
beyond
January.
Our
“Buy”
rated
stocks
beat
“Sell”
rated
stocks
meaningfully
for
the
quarter
ending
March
31,
indicating
that
fundamentals
and
profitability
began
to
matter.
In
particular,
longer-term
and
normalized
valuations
were
rewarded,
and
improving
fundamental
earnings
estimates
carried
greater
impact
over
distant
forecasts.
Safety
and
high
valuations
began
to
lag.
We
believe
the
February/
March
period
offers
a
more
balanced
view
of
what
we
believe
the
future
holds.
For
the
full
year,
our
selection
of
stocks
in
financials
were
the
greatest
contributors
to
performance,
as
rising
rates
and
better
valuations
began
to
work
in
our
favor.
Consumer
stocks
were
the
greatest
detractors
from
our
relative
performance.
While
current
earnings
are
depressed,
our
models
are
overweighting
longer-term
fundamentals
and
de-emphasizing
short-term
metrics.
This
tilt
helped
us
since
January
and
is
expected
to
be
in
place
until
the
gap
between
current
and
forecasted
profitability
narrows
from
the
current
extremes.
The
following
NAV
returns
are
presented
as
of
3/31/2021,
are
net
of
management
fee
and
other
operating
costs,
and
reflect
the
reinvestment
of
distributions.
For
periods
over
one-year,
average
annual
returns
are
presented:
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
fund
is
1.30%
for
CSCVX.
The
Fund
charges
a
1.00%
redemption
fee
for
shares
redeemed
within
60
days
of
purchase.
BOTTOM
LINE
Despite
the
Value
benchmark
posting
strong
returns
since
last
September,
much
of
this
activity
came
from
less
profitable,
lower
quality
stocks
that
were
rebounding
off
their
lows.
We
saw
this
activity
peak
in
January,
when
the
most
heavily
shorted
and
unprofitable
stocks
did
exceptionally
well.
Since
that
time,
we
have
started
to
see
investors
favor
stocks
with
better
fundamentals
and
attractive
prices,
which
we
believe
is
the
better
long-term
position
for
the
strategy.
1
Yr
5
Yr
10
Yr
INVESTOR
SHARES
CSCVX
88.56%
12.70%
10.61%
Russell
2000
Value
Index
97.05%
13.56%
10.06%
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2021
Annual
Report
I
March
31,
2021
3
As
we
enter
the
post-pandemic
period,
we
continue
to
believe
a
new
economic
regime
is
emerging,
presenting
different
risks
and
opportunities
for
investors.
With
greater
fiscal
stimulus,
rollout
of
vaccines,
and
high
savings
levels,
economies
are
beginning
to
re-open.
We
are
already
seeing
the
signs
of
change
in
the
markets,
and
we
believe
the
backdrop
is
favorable
to
small
cap
stocks,
particularly
those
higher
quality,
reasonably
priced
companies.
CornerCap
Investment
Counsel
March
31,
2021
The
views
in
this
letter
reflect
the
opinions
of
CornerCap
Group
of
Funds
as
of
March
31,
2021
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.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2021
4
www.cornercapfunds.com
Investment
Performance
through
March
31,
2021
(In
Thousands)
Total
Return
for
the
period
ended
March
31,
2021
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.
1
Year
5
Year
10
Year
Since
Inception
(a)
Expense
Ratio
CornerCap
Small-Cap
Value
Fund
--
Investor
Shares
(b)
88.56%
12.70%
10.61%
10.00%
1.30%
(c)
CornerCap
Small-Cap
Value
Fund
--
Institutional
Shares
(b)(d)
89.19%
13.03%
10.79%
10.07%
1.00%
Russell
2000
Value
Index
(e)
97.05%
13.56%
10.06%
11.00%
Russell
2000
Index
(f)
94.85%
16.35%
11.68%
10.44%
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2021
Annual
Report
I
March
31,
2021
5
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.
The
index
figures
do
not
reflect
any
deduction
for
fees,
expenses
or
taxes.
It
is
not
possible
to
invest
directly
in
an
index.
(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)
is
1.30%.
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,
2021
,
without
the
Board
of
Trustees’
approval.
(d)
The
Small-Cap
Value
Fund’s
Institutional
Shares
performance
for
the
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.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2021
6
www.cornercapfunds.com
Sector
Allocation
as
a
Percentage
of
Total
Investments
at
March
31,
2021*
*
These
allocations
may
not
reflect
the
current
or
future
position
of
the
portfolio.
Fund
Expenses
(Unaudited)
March
31,
2021
Annual
Report
I
March
31,
2021
7
As
a
shareholder
of
the
Fund,
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
Fund,
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,
2020
through
March
31,
2021.
Actual
Expenses
–
The
first
line
under
each
share
class
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
share
class
of
the
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
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
the
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.
Beginning
Account
Value
October
1,
2020
Ending
Account
Value
March
31,
2021
Expenses
Paid
During
Period
(a)
Investor
Shares
Actual
$
1,000.00
$
1,541.34
$
8.24
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,018.45
$
6.54
Institutional
Shares
Actual
$
1,000.00
$
1,544.45
$
6.34
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 1.30%
for
CornerCap
Small-Cap
Value
Fund
—
Investor
Shares
and
1.00%
for
CornerCap
Small-Cap
Value
Fund
—
Institutional
Shares,
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.
Fund
Expenses
(Unaudited)
March
31,
2021
8
www.cornercapfunds.com
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
Fund
does
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.
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
9
Annual
Report
I
March
31,
2021
Shares
Fair
Value
COMMON
STOCK
(99.8%)
Auto
Parts
&
Equipment
(
2.4%
)
Allison
Transmission
Holdings,
Inc.
17,467
$
713,178
American
Axle
&
Manufacturing
Holdings,
Inc.
(a)
35,711
344,968
Commercial
Vehicle
Group,
Inc.
(a)
34,697
334,826
Methode
Electronics,
Inc.
18,260
766,555
Modine
Manufacturing
Co.
(a)
49,854
736,344
Standard
Motor
Products,
Inc.
15,454
642,577
Tenneco,
Inc.,
Class A
(a)
30,898
331,227
Titan
International,
Inc.
18,687
173,415
4,043,090
Banks
(
15.0%
)
Amalgamated
Financial
Corp.
18,958
314,513
American
National
Bankshares
,
Inc.
10,128
334,933
BayCom
Corp.
(a)
18,585
334,902
Cadence
BanCorp
8,318
172,432
Camden
National
Corp.
7,382
353,303
Civista
Bancshares,
Inc.
34,143
783,240
CNB
Financial
Corp.
29,612
728,751
Community
Trust
Bancorp,
Inc.
8,512
374,783
ConnectOne
Bancorp,
Inc.
27,917
707,696
Customers
Bancorp,
Inc.
(a)
23,246
739,688
Dime
Community
Bancshares,
Inc.
22,250
670,615
Eagle
Bancorp,
Inc.
8,310
442,175
Equity
Bancshares,
Inc.,
Class A
(a)
14,456
396,094
Farmers
National
Banc
Corp.
23,182
387,139
Financial
Institutions,
Inc.
23,943
725,234
First
Busey
Corp.
29,837
765,319
First
Community
Bankshares
,
Inc.
12,218
366,418
First
Financial
Bancorp
14,933
358,392
First
Horizon
Corp.
22,074
373,271
First
Internet
Bancorp
13,763
484,871
First
Mid
Bancshares,
Inc.
16,168
710,260
Flagstar
Bancorp,
Inc.
15,687
707,484
FNB
Corp.
55,739
707,885
Hancock
Whitney
Corp.
9,145
384,181
Hanmi
Financial
Corp.
45,591
899,510
Heartland
Financial
USA,
Inc.
7,460
374,940
Hope
Bancorp,
Inc.
34,591
520,940
Horizon
Bancorp,
Inc./IN
39,912
741,565
Independent
Bank
Corp.
36,724
868,155
Macatawa
Bank
Corp.
39,227
390,309
Merchants
Bancorp/IN
17,032
714,322
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
10
www.cornercapfunds.com
Shares
Fair
Value
Banks
(15.0%)
(continued)
Metropolitan
Bank
Holding
Corp.
(a)
6,624
$
333,585
Midland
States
Bancorp,
Inc.
25,792
715,470
MidWestOne
Financial
Group,
Inc.
25,008
774,498
Northrim
BanCorp
,
Inc.
8,119
345,139
Old
Second
Bancorp,
Inc.
25,533
337,291
Orrstown
Financial
Services,
Inc.
15,753
351,292
PacWest
Bancorp
21,959
837,736
Peapack
-Gladstone
Financial
Corp.
10,932
337,580
Preferred
Bank/Los
Angeles
CA
5,442
346,547
Premier
Financial
Corp.
13,776
458,190
QCR
Holdings,
Inc.
14,865
701,925
RBB
Bancorp
23,842
483,277
Republic
Bancorp,
Inc.,
Class A
16,234
719,004
Sierra
Bancorp
13,490
361,532
The
First
of
Long
Island
Corp.
17,678
375,658
Umpqua
Holdings
Corp.
43,335
760,529
West
BanCorp
,
Inc.
15,842
381,634
25,454,207
Beverages
-
Non-alcoholic
(
0.4%
)
Coca-Cola
Consolidated,
Inc.
2,350
678,633
Building
Materials
(
7.0%
)
Apogee
Enterprises,
Inc.
21,433
876,181
Beazer
Homes
USA,
Inc.
(a)
24,029
502,687
Caesarstone
,
Ltd.
48,977
672,454
Century
Communities,
Inc.
(a)
6,936
418,379
GMS,
Inc.
(a)
18,301
764,067
Griffon
Corp.
13,288
361,035
JELD-WEN
Holding,
Inc.
(a)
13,432
371,932
KB
Home
11,647
541,935
Louisiana-Pacific
Corp.
8,829
489,656
Lydall
,
Inc.
(a)
8,491
286,486
M/I
Homes,
Inc.
(a)
12,172
719,000
MDU
Resources
Group,
Inc.
24,110
762,117
Meritage
Homes
Corp.
(a)
7,342
674,877
MYR
Group,
Inc.
(a)
10,563
757,050
Patrick
Industries,
Inc.
8,464
719,440
Quanex
Building
Products
Corp.
28,024
735,070
Toll
Brothers,
Inc.
6,469
366,986
Tri
Pointe
Homes,
Inc.
(a)
19,157
390,037
Tutor
Perini
Corp.
(a)
21,994
416,786
UFP
Industries,
Inc.
10,293
780,621
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
11
Annual
Report
I
March
31,
2021
Shares
Fair
Value
Building
Materials
(7.0%)
(continued)
Winnebago
Industries,
Inc.
4,687
$
359,540
11,966,336
Chemicals
(
2.9%
)
American
Vanguard
Corp.
19,041
388,627
Cabot
Corp.
13,220
693,257
Ingevity
Corp.
(a)
9,783
738,910
Koppers
Holdings,
Inc.
(a)
10,600
368,456
Kraton
Corp.
(a)
17,959
657,120
The
Chemours
Co.
29,004
809,502
Univar
Solutions,
Inc.
(a)
32,719
704,767
W
R
Grace
&
Co.
9,055
542,032
4,902,671
Coal
Operations
(
0.2%
)
SunCoke
Energy,
Inc.
57,974
406,398
Commercial
Services
(
3.5%
)
BGSF,
Inc.
24,724
346,136
Cars.com,
Inc.
(a)
55,313
716,856
CoreCivic
,
Inc.
(a)
62,811
568,440
Kelly
Services,
Inc.,
Class A
(a)
15,811
352,111
Kforce
,
Inc.
13,171
705,966
ManpowerGroup
,
Inc.
3,727
368,600
Mimecast,
Ltd.
(a)
14,188
570,499
Radiant
Logistics,
Inc.
(a)
24,701
171,672
Resources
Connection,
Inc.
49,377
668,565
The
Hackett
Group,
Inc.
45,975
753,530
Yelp,
Inc.
(a)
19,179
747,981
5,970,356
Computers
(
2.8%
)
CommVault
Systems,
Inc.
(a)
10,644
686,538
CSG
Systems
International,
Inc.
12,493
560,811
MAXIMUS,
Inc.
4,317
384,385
NetScout
Systems,
Inc.
(a)
11,344
319,447
Perspecta
,
Inc.
21,380
621,089
Science
Applications
International
Corp.
6,549
547,431
StarTek
,
Inc.
(a)
45,461
361,415
Sykes
Enterprises,
Inc.
(a)
8,210
361,897
Tenable
Holdings,
Inc.
(a)
7,648
276,743
Teradata
Corp.
(a)
17,949
691,754
4,811,510
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
12
www.cornercapfunds.com
Shares
Fair
Value
Diversified
Financial
Services
(
2.8%
)
Artisan
Partners
Asset
Management,
Inc.,
Class A
13,393
$
698,713
Evercore
,
Inc.,
Class A
5,733
755,265
Federated
Hermes,
Inc.,
Class B
25,384
794,519
KAR
Auction
Services,
Inc.
(a)
16,197
242,955
Moelis
&
Co.,
Class A
13,790
756,795
NMI
Holdings,
Inc.,
Class A
(a)
15,228
359,990
PJT
Partners,
Inc.
8,597
581,587
RE/MAX
Holdings,
Inc.
16,466
648,596
4,838,420
Education
(
0.7%
)
Adtalem
Global
Education,
Inc.
(a)
8,104
320,432
American
Public
Education,
Inc.
(a)
9,211
328,188
Grand
Canyon
Education,
Inc.
(a)
2,925
313,268
Perdoceo
Education
Corp.
(a)
22,164
265,081
1,226,969
Electric
(
0.8%
)
Black
Hills
Corp.
9,599
640,925
Otter
Tail
Corp.
13,800
637,146
1,278,071
Electrical
Components
&
Equipment
(
1.6%
)
Jabil,
Inc.
15,010
782,922
Kimball
Electronics,
Inc.
(a)
14,638
377,660
Rambus,
Inc.
(a)
30,889
600,482
Sanmina
Corp.
(a)
19,336
800,124
Vishay
Intertechnology
,
Inc.
7,302
175,832
2,737,020
Electronics
(
1.1%
)
OSI
Systems,
Inc.
(a)
7,053
677,793
Plexus
Corp.
(a)
7,453
684,484
SYNNEX
Corp.
3,708
425,827
1,788,104
Engineering
&
Construction
(
1.4%
)
EMCOR
Group,
Inc.
6,413
719,282
Mistras
Group,
Inc.
(a)
48,770
556,466
Primoris
Services
Corp.
21,024
696,525
Sterling
Construction
Co.,
Inc.
(a)
17,023
394,933
2,367,206
Food
(
0.9%
)
Flowers
Foods,
Inc.
22,539
536,428
Ingredion,
Inc.
3,455
310,674
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
13
Annual
Report
I
March
31,
2021
Shares
Fair
Value
Food
(0.9%)
(continued)
TreeHouse
Foods,
Inc.
(a)
13,305
$
695,053
1,542,155
Forest
Products
&
Paper
(
0.8%
)
Clearwater
Paper
Corp.
(a)
14,589
548,838
Domtar
Corp.
20,232
747,573
1,296,411
Gambling
(Non-Hotel)
(
0.2%
)
Golden
Entertainment,
Inc.
(a)
12,712
321,105
Healthcare
Products
(
0.6%
)
Luminex
Corp.
21,617
689,582
NextGen
Healthcare,
Inc.
(a)
20,787
376,245
1,065,827
Healthcare
Services
(
5.2%
)
Addus
HomeCare
Corp.
(a)
5,634
589,260
Apollo
Medical
Holdings,
Inc.
(a)
27,752
751,802
Chemed
Corp.
1,537
706,743
Computer
Programs
and
Systems,
Inc.
9,826
300,676
Covetrus
,
Inc.
(a)
17,060
511,288
Envista
Holdings
Corp.
(a)
17,800
726,240
Hanger,
Inc.
(a)
26,441
603,384
Hill-Rom
Holdings,
Inc.
6,357
702,321
Inovalon
Holdings,
Inc.,
Class A
(a)
27,020
777,636
LHC
Group,
Inc.
(a)
3,100
592,751
Premier,
Inc.,
Class A
16,050
543,292
Select
Medical
Holdings
Corp.
(a)
20,502
699,118
United
Therapeutics
Corp.
(a)
4,071
680,956
Viemed
Healthcare,
Inc.
(a)
66,332
671,280
8,856,747
Home
Builders
(
0.2%
)
MDC
Holdings,
Inc.
6,897
409,682
Home
Furnishings
(
1.2%
)
Ethan
Allen
Interiors,
Inc.
13,222
365,059
Herman
Miller,
Inc.
16,511
679,428
Hooker
Furniture
Corp.
9,391
342,396
La-Z-Boy,
Inc.
15,141
643,190
2,030,073
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
14
www.cornercapfunds.com
Shares
Fair
Value
Household
Products
(
0.5%
)
Ennis,
Inc.
36,223
$
773,361
Insurance
(
3.7%
)
CNO
Financial
Group,
Inc.
28,033
680,922
Donegal
Group,
Inc.,
Class A
21,604
321,035
First
American
Financial
Corp.
11,990
679,234
Horace
Mann
Educators
Corp.
8,792
379,902
Mercury
General
Corp.
6,188
376,292
MGIC
Investment
Corp.
27,561
381,720
Old
Republic
International
Corp.
33,298
727,228
ProSight
Global,
Inc.
(a)
28,382
357,613
Stewart
Information
Services
Corp.
13,531
704,018
The
Hanover
Insurance
Group,
Inc.
2,786
360,676
Universal
Insurance
Holdings,
Inc.
45,746
655,998
Unum
Group
25,693
715,036
6,339,674
Machinery
-
Diversified
(
1.4%
)
Argan
,
Inc.
12,774
681,493
Curtiss-Wright
Corp.
5,813
689,422
Luxfer
Holdings
PLC
17,437
371,059
Terex
Corp.
6,995
322,260
Thermon
Group
Holdings,
Inc.
(a)
18,272
356,121
2,420,355
Media
(
1.2%
)
Gray
Television,
Inc.
36,822
677,525
Meredith
Corp.
(a)
22,311
664,422
The
EW
Scripps
Co.,
Class A
37,113
715,167
2,057,114
Metal
Fabricate
&
Hardware
(
1.4%
)
AZZ,
Inc.
13,589
684,206
Insteel
Industries,
Inc.
11,317
349,016
The
Timken
Co.
7,974
647,250
Worthington
Industries,
Inc.
10,329
692,973
2,373,445
Miscellaneous
Manufacturing
(
6.3%
)
Alcoa
Corp.
(a)
22,313
724,949
Axalta
Coating
Systems,
Ltd.
(a)
12,055
356,587
Brady
Corp.,
Class A
6,915
369,607
Carriage
Services,
Inc.
20,008
704,082
Crane
Co.
7,391
694,089
Energizer
Holdings,
Inc.
8,229
390,548
EnPro
Industries,
Inc.
8,108
691,369
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
15
Annual
Report
I
March
31,
2021
Shares
Fair
Value
Miscellaneous
Manufacturing
(6.3%)
(continued)
Hamilton
Beach
Brands
Holding
Co.,
Class
A,
Class A
12,850
$
232,970
Huntington
Ingalls
Industries,
Inc.
3,814
785,112
Ichor
Holdings,
Ltd.
(a)
8,147
438,309
Matthews
International
Corp.
11,270
445,728
Moog,
Inc.,
Class A
8,631
717,668
O-I
Glass,
Inc.
(a)
50,810
748,939
Park-Ohio
Holdings
Corp.
20,991
661,007
Pilgrim's
Pride
Corp.
(a)
29,982
713,272
Powell
Industries,
Inc.
22,736
770,068
Royal
Gold,
Inc.
3,103
333,945
Spectrum
Brands
Holdings,
Inc.
8,340
708,900
Sturm
Ruger
&
Co.,
Inc.
4,000
264,280
10,751,429
Office
Furnishings
(
0.8%
)
HNI
Corp.
18,445
729,684
Interface,
Inc.
54,523
680,447
1,410,131
Oil
&
Gas
(
5.1%
)
Berry
Corp.
108,270
596,568
Bonanza
Creek
Energy,
Inc.
(a)
21,521
768,945
Cimarex
Energy
Co.
13,527
803,368
Comstock
Resources,
Inc.
(a)
92,033
509,863
Delek
U.S.
Holdings,
Inc.
14,960
325,829
Equitrans
Midstream
Corp.
79,099
645,448
HollyFrontier
Corp.
15,781
564,644
National
Fuel
Gas
Co.
15,058
752,749
Ovintiv
,
Inc.
14,021
333,980
PDC
Energy,
Inc.
(a)
21,529
740,598
Penn
Virginia
Corp.
(a)
32,817
439,748
ProPetro
Holding
Corp.
(a)
64,306
685,502
Select
Energy
Services,
Inc.,
Class A
(a)
5,858
29,173
Southwest
Gas
Holdings,
Inc.
10,501
721,524
Spire,
Inc.
10,859
802,371
8,720,310
Pharmaceuticals
(
2.3%
)
Amphastar
Pharmaceuticals,
Inc.
(a)
27,863
510,450
Emergent
BioSolutions
,
Inc.
(a)
6,118
568,423
Horizon
Therapeutics
PLC
(a)
7,586
698,216
PRA
Health
Sciences,
Inc.
(a)
4,541
696,272
Prestige
Consumer
Healthcare,
Inc.
(a)
16,503
727,452
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
16
www.cornercapfunds.com
Shares
Fair
Value
Pharmaceuticals
(2.3%)
(continued)
USANA
Health
Sciences,
Inc.
(a)
7,952
$
776,115
3,976,928
Real
Estate
Investment
Trusts
(
8.1%
)
Apple
Hospitality
REIT,
Inc.
45,392
661,361
Brixmor
Property
Group,
Inc.
REIT
31,424
635,708
Broadstone
Net
Lease,
Inc.
REIT
34,104
624,103
CareTrust
REIT,
Inc.
26,497
616,983
Chatham
Lodging
Trust
REIT
(a)
49,086
645,972
City
Office
REIT,
Inc.
31,287
332,268
Community
Healthcare
Trust,
Inc.
REIT
7,500
345,900
Corporate
Office
Properties
Trust
REIT
23,438
617,123
Cousins
Properties,
Inc.
REIT
8,346
295,031
EastGroup
Properties,
Inc.
REIT
2,601
372,671
Getty
Realty
Corp.
REIT
17,090
483,989
Gladstone
Land
Corp.
REIT
21,848
399,818
Highwoods
Properties,
Inc.
REIT
15,333
658,399
Industrial
Logistics
Properties
Trust
REIT
21,925
507,125
LTC
Properties,
Inc.
REIT
7,382
307,977
National
Health
Investors,
Inc.
REIT
8,154
589,371
National
Storage
Affiliates
Trust
REIT
14,187
566,487
PotlatchDeltic
Corp.
REIT
11,045
584,501
PS
Business
Parks,
Inc.
REIT
3,577
552,933
Retail
Opportunity
Investments
Corp.
REIT
19,483
309,195
Sabra
Health
Care
REIT,
Inc.
15,588
270,608
Saul
Centers,
Inc.
REIT
8,092
324,570
Service
Properties
Trust
REIT
43,321
513,787
STAG
Industrial,
Inc.
REIT
11,442
384,566
The
GEO
Group,
Inc.
REIT
46,982
364,580
Urstadt
Biddle
Properties,
Inc.,
Class A
REIT
36,293
604,278
Weingarten
Realty
Investors
REIT
17,300
465,543
Whitestone
REIT
69,610
675,217
13,710,064
Retail
(
6.1%
)
AutoNation,
Inc.
(a)
7,182
669,506
Build-A-Bear
Workshop,
Inc.,
Class A
(a)
47,430
327,267
Caleres
,
Inc.
37,229
811,592
Carter's,
Inc.
(a)
7,990
710,551
Culp,
Inc.
32,268
496,604
Del
Taco
Restaurants,
Inc.
61,812
592,159
Herbalife
Nutrition,
Ltd.
(a)
7,630
338,467
Nu
Skin
Enterprises,
Inc.,
Class A
6,727
355,791
OneWater
Marine,
Inc.
(a)
12,247
489,390
Party
City
Holdco,
Inc.
(a)
76,959
446,362
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
17
Annual
Report
I
March
31,
2021
Shares
Fair
Value
Retail
(6.1%)
(continued)
Polaris,
Inc.
5,700
$
760,950
Qurate
Retail,
Inc.,
Class A
55,877
657,114
Rocky
Brands,
Inc.
7,200
389,232
The
ODP
Corp.
(a)
14,658
634,545
The
Wendy's
Co.
33,149
671,599
Titan
Machinery,
Inc.
(a)
13,611
347,080
Tupperware
Brands
Corp.
(a)
17,638
465,820
Vector
Group,
Ltd.
50,071
698,490
World
Fuel
Services
Corp.
15,301
538,595
10,401,114
Savings
&
Loans
(
2.1%
)
Flushing
Financial
Corp.
22,399
475,531
FS
Bancorp,
Inc.
10,170
683,424
Home
Bancorp,
Inc.
5,584
201,303
Investors
Bancorp,
Inc.
31,401
461,281
Meridian
Bancorp,
Inc.
25,846
476,083
New
York
Community
Bancorp,
Inc.
29,783
375,862
Provident
Financial
Services,
Inc.
15,619
347,991
Southern
Missouri
Bancorp,
Inc.
12,067
475,681
3,497,156
Semiconductors
(
1.8%
)
Axcelis
Technologies,
Inc.
(a)
8,722
358,387
Cirrus
Logic,
Inc.
(a)
7,752
657,292
Cohu
,
Inc.
(a)
16,450
688,268
DSP
Group,
Inc.
(a)
10,322
147,089
Onto
Innovation,
Inc.
(a)
6,358
417,784
Ultra
Clean
Holdings,
Inc.
(a)
12,596
731,072
2,999,892
Software
(
1.2%
)
Blackbaud
,
Inc.
(a)
8,200
582,856
BM
Technologies,
Inc.
(a)
6,893
80,304
ePlus
,
Inc.
(a)
6,677
665,296
Progress
Software
Corp.
15,017
661,649
1,990,105
Technology
(
0.4%
)
Xerox
Holdings
Corp.
26,604
645,679
Telecommunications
(
3.7%
)
A10
Networks,
Inc.
(a)
69,003
663,119
ATN
International,
Inc.
11,983
588,605
Schedule
of
Investments
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
18
www.cornercapfunds.com
Shares
Fair
Value
Telecommunications
(3.7%)
(continued)
Aviat
Networks,
Inc.
(a)
5,308
$
377,080
Casa
Systems,
Inc.
(a)
47,169
449,521
CommScope
Holding
Co.,
Inc.
(a)
43,033
660,987
Extreme
Networks,
Inc.
(a)
42,615
372,881
TEGNA,
Inc.
36,766
692,304
Telephone
and
Data
Systems,
Inc.
28,824
661,799
U.S.
Cellular
Corp.
(a)
19,316
704,648
Viavi
Solutions,
Inc.
(a)
42,987
674,896
Zix
Corp.
(a)
68,050
513,777
6,359,617
Transportation
(
2.0%
)
ArcBest
Corp.
5,001
351,920
Costamare
,
Inc.
34,363
330,572
Diamond
S
Shipping,
Inc.
(a)
72,448
726,653
Ryder
System,
Inc.
5,230
395,650
Schneider
National,
Inc.,
Class B
27,349
682,905
USA
Truck,
Inc.
(a)
44,493
850,260
3,337,960
TOTAL
COMMON
STOCK
(COST
$134,389,861)
169,755,325
INVESTMENTS,
AT
VALUE
(COST
$134,389,861)
99.8%
169,755,325
TOTAL
ASSETS
IN
EXCESS
OF
OTHER
LIABILITIES
0.2%
264,752
NET
ASSETS
100.0%
$
170,020,077
(a)
Non-income
producing
security.
Common
Abbreviations:
PLC
Public
Limited
Company
REIT
Real
Estate
Investment
Trust
Statement
of
Assets
and
Liabilities
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
19
Annual
Report
I
March
31,
2021
ASSETS:
Investments,
at
value
(Cost
$134,389,861)
$
169,755,325
Receivable
for
fund
shares
subscribed
18,029
Receivable
for
investments
sold
644,127
Dividends
receivable
144,248
Total
assets
170,561,729
LIABILITIES:
Payable
for
investment
securities
purchased
316,201
Payable
due
to
custodian
99,335
Advisory
fee
payable
83,939
Other
expenses
42,177
Total
liabilities
541,652
Net
assets
$
170,020,077
PRICING
OF
INVESTOR
SHARES
(NOTE
2
):
Net
Assets
106,612,998
Shares
Outstanding
5,885,430
Net
asset
value,
offering
and
redemption
price
per
share
$
18.11
PRICING
OF
INSTITUTIONAL
SHARES
(NOTE
2
):
Net
Assets
$
63,407,079
Shares
Outstanding
3,491,041
Net
asset
value,
offering
and
redemption
price
per
share
$
18.16
NET
ASSETS
CONSISTS
OF:
Paid-in
capital
$
120,7
17,065
Distributable
earnings
49,3
03,012
Net
assets
$
170,020,077
Statement
of
Operations
For
the
Year
Ended
March
31,
2021
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
20
www.cornercapfunds.com
INVESTMENT
INCOME:
Dividends,
(net
of
foreign
withholding
taxes
of
$2,147)
$
3,072,992
Total
investment
income
3,072,992
EXPENSES:
Advisory
fees
1,204,187
Operating
expenses
Investor
Shares
343,112
Institutional
Shares
48,020
Total
expenses
1,595,319
Less
fees
waived/reimbursed
by
investment
adviser
–
Net
expenses
1,595,319
Net
investment
income
1,477,673
REALIZED
AND
UNREALIZED
GAIN
ON
INVESTMENTS:
Net
realized
gain
on
investments
20,064,181
Net
change
in
unrealized
appreciation
on
investments
63,317,291
Net
gain
on
investments
83,381,472
Net
increase
in
net
assets
resulting
from
operations
$
84,859,145
Statement
of
Changes
in
Net
Assets
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
21
Annual
Report
I
For
the
Year
Ended
March
31,
2021
For
the
Year
Ended
March
31,
2020
OPERATIONS:
Net
investment
income
$
1,477,673
$
991,332
Net
realized
gain
(loss)
on
investments
20,064,181
(1,420,985)
Net
change
in
unrealized
appreciation
(depreciation)
of
investments
63,317,291
(28,956,168)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
84,859,145
(29,385,821)
DISTRIBUTIONS
TO
SHAREHOLDERS:
Investor
Shares
(646,742)
(478,081)
Institutional
Shares
(527,937)
(286,781)
Total
distributions
(1,174,679
)
(764,862
)
CAPITAL
SHARE
TRANSACTIONS:
Net
decrease
from
capital
share
transactions
(see
Note
3
)
(2,029,302)
(881,760)
Redemption
fees
2,594
3,936
Net
decrease
from
capital
share
transactions
(2,026,708)
(877,824)
Total
increase
(decrease)
in
net
assets
81,657,758
(31,028,507)
NET
ASSETS:
Beginning
of
year
88,362,319
119,390,826
End
of
year
$
170,020,077
$
88,362,319
Financial
Highlights
CornerCap
Small-Cap
Value
Fund
-
Investor
Shares
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
22
www.cornercapfunds.com
Selected
data
for
each
share
of
beneficial
interest
outstanding
throughout
the
years
indicated:
Year
Ended
March
31,
2021
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Year
Ended
March
31,
2018
Year
Ended
March
31,
2017
INVESTOR
SHARES
PER
SHARE
OPERATING
PERFORMANCE
Net
asset
value,
beginning
of
year
$
9.67
$
13.12
$
15.27
$
16.68
$
14.00
INCOME/(LOSS)
FROM
INVESTMENT
OPERATIONS:
Net
investment
income
(a)
0.13
0.10
0.08
0.06
0.04
Net
realized
and
unrealized
gain
(loss)
on
investments
8.41
(3.47)
(0.38)
0.90
3.38
Total
Income/(Loss)
from
Investment
Operations
8.54
(3.37)
(0.30)
0.96
3.42
DIVIDENDS
AND
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions
from
net
investment
income
(0.10)
(0.08)
(0.04)
(0.01)
(0.03)
Distributions
from
net
realized
gain
on
investments
–
–
(1.81)
(2.36)
(0.71)
Total
Dividends
and
Distributions
to
Shareholders
(0.10)
(0.08)
(1.85)
(2.37)
(0.74)
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
$
18.11
$
9.67
$
13.12
$
15.27
$
16.68
Total
Return
88.56%
(25.91)%
(0.99)%
5.64%
24.40%
RATIOS
AND
SUPPLEMENTAL
DATA:
Net
assets,
end
of
year
(in
000s)
$
106,613
$
60,472
$
85,230
$
84,789
$
77,455
RATIOS
TO
AVERAGE
NET
ASSETS:
Net
investment
income
0.99%
0.74%
0.55%
0.36%
0.26%
Net
expenses
1.30%
1.30%
1.30%
1.30%
1.30%
Gross
expenses
1.30%
1.30%
1.30%
1.30%
1.30%
Portfolio
turnover
rate
121%
127%
147%
117%
129%
footer
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.005
per
share.
Financial
Highlights
CornerCap
Small-Cap
Value
Fund
-
Institutional
Shares
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
23
Annual
Report
I
Selected
data
for
each
share
of
beneficial
interest
outstanding
throughout
the
years
indicated:
Year
Ended
March
31,
2021
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Year
Ended
March
31,
2018
Year
Ended
March
31,
2017
INSTITUTIONAL
SHARES
PER
SHARE
OPERATING
PERFORMANCE
Net
asset
value,
beginning
of
year
$
9.69
$
13.15
$
15.30
$
16.70
$
14.02
INCOME/(LOSS)
FROM
INVESTMENT
OPERATIONS:
Net
investment
income
(a)
0.18
0.14
0.13
0.11
0.09
Net
realized
and
unrealized
gain
(loss)
on
investments
8.43
(3.48)
(0.39)
0.91
3.38
Total
Income/(Loss)
from
Investment
Operations
8.61
(3.34)
(0.26)
1.02
3.47
DIVIDENDS
AND
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions
from
net
investment
income
(0.14)
(0.12)
(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
(0.14)
(0.12)
(1.89)
(2.42)
(0.79)
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
$
18.16
$
9.69
$
13.15
$
15.30
$
16.70
Total
Return
89.19%
(25.72)%
(0.68)%
5.96%
24.74%
RATIOS
AND
SUPPLEMENTAL
DATA:
Net
assets,
end
of
year
(in
000s)
$
63,407
$
27,890
$
34,161
$
37,788
$
28,523
RATIOS
TO
AVERAGE
NET
ASSETS:
Net
investment
income
1.31%
1.05%
0.84%
0.67%
0.57%
Net
expenses
1.00%
1.00%
1.00%
1.00��%
1.00%
Gross
expenses
1.00%
1.00%
1.00%
1.00%
1.00%
Portfolio
turnover
rate
121%
127%
147%
117%
129%
footer
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.005
per
share.
Notes
to
Financial
Statements
March
31,
2021
24
www.cornercapfunds.com
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
CornerCap
Small-Cap
Value
Fund
(the
“Fund”).
The
Fund
currently
offers
Investor
Shares
and
Institutional
Shares.
The
Fund’s
investment
objective
is
long-term
capital
appreciation
with
a
secondary
objective
of
generating
income
from
dividends
or
interest
on
securities.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
Fund
is
an
investment
company
and
follows
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
Fund.
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
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
are
classified
as
Level
1
of
the
fair
value
hierarchy.
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
by
and
under
the
general
supervision
and
responsibility
of
the
Fund’s
Board
of
Trustees
and
will
be
classified
as
Level
2
or
3
within
the
fair
value
hierarchy,
depending
on
the
inputs
used.
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
Fund’s
understanding
of
the
applicable
country’s
tax
rules
and
rates.
Discounts
and
premiums
on
securities
purchased
are
amortized
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.
Notes
to
Financial
Statements
March
31,
2021
Annual
Report
I
March
31,
2021
25
REITs
–
The
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.
The
Fund
may
include
the
gross
dividends
from
such
REITs
in
income
or
may
utilize
estimates
of
any
potential
REIT
dividend
reclassifications
in
the
Fund’s
annual
distributions
to
shareholders
and,
accordingly,
a
portion
of
the
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
Fund
currently
qualifies,
and
intends
to
remain
qualified,
as
a
regulated
investment
company
(“RIC”)
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,
2021,
the
Fund
did
not
have
a
liability
for
any
unrecognized
tax
benefits.
The
Fund
files
U.S.
federal,
state,
and
local
tax
returns
as
required.
The
Fund’s
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
Fund
recognizes
interest
and
penalties,
if
any,
related
to
unrecognized
tax
benefits
as
income
tax
expense
in
the
Statement
of
Operations.
During
the
year,
the
Fund
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
the
Fund.
Expenses
that
are
directly
attributable
to
more
than
one
investment
portfolio
are
allocated
among
the
respective
Funds
in
an
equitable
manner.
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.
Notes
to
Financial
Statements
March
31,
2021
26
www.cornercapfunds.com
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
Fund’s
investments
as
of
March
31,
2021:
For
the
year
ended
March
31,
2021
,
the
Fund
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
Fund
did
not
hold
any
derivative
instruments
at
any
time
during
the
year
.
3.
SHARES
OF
BENEFICIAL
INTEREST
On
March
31,
2021
,
there
was
an
unlimited
number
of
no
par-value
shares
of
beneficial
interest
authorized
for
the
Fund.
Subject
to
certain
exceptions,
the
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
Fund.
The
redemption
fees
charged
during
the
year
are
disclosed
on
the
Statements
of
Changes
in
Net
Assets.
Transactions
in
shares
of
beneficial
interest
were
as
follows:
Valuation
Inputs
Investments
at
Value
*
Level
1
Level
2
Level
3
Total
Common
Stocks
$
169,755,325
$
–
$
–
$
169,755,325
Total
$
169,755,325
$
–
$
–
$
169,755,325
*
See
Schedule
of
Investments
for
industry
classification
Notes
to
Financial
Statements
March
31,
2021
Annual
Report
I
March
31,
2021
27
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
Fund.
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,
2021
and
March
31,
2020
were
as
follows:
Equalization
debits
included
in
the
distribution
for
the
Fund
were
as
follows:
For
the
year
ended
March
31,
2021
,
the
Fund
recorded
the
following
reclassifications
to
the
accounts
listed
below.
The
reclassifications
were
primarily
as
a
result
of
equalization
debits
utilized.
As
of
March
31,
2021
,
the
components
of
distributable
earnings
on
a
tax
basis
were
as
follows:
Year
Ended
March
31,
2021
Year
Ended
March
31,
2020
Shares
Amount
Shares
Amount
Shares
Sold
Investor
Shares
1,282,119
15,528,843
924,996
11,825,875
Institutional
Shares
1,325,194
16,883,046
766,322
8,927,442
Shares
Issued
in
Reinvestment
of
Dividends
Investor
Shares
43,844
646,694
32,788
478,045
Institutional
Shares
35,048
517,654
18,955
276,746
Total
2,686,205
33,576,237
1,743,061
21,508,108
Less
Shares
Redeemed
Investor
Shares
(1,693,071)
(24,498,915)
(1,199,978)
(16,045,580)
Institutional
Shares
(746,425)
(11,106,624)
(506,070)
(6,344,288)
Net
increase
(decrease)
246,709
$
(2,029,302)
37,013
$
(881,760)
Distributions
Paid
From:
2021
2020
Ordinary
Income
$
1,174,679
$
764,862
Long-term
capital
gains
5
40,000
–
Total
$
1,7
14,679
$
764,862
Ordinary
Income
Long-Term
Capital
Gain
Total
2021
$
–
$
5
40,000
$
5
40,000
Distributable
Earnings
Paid-in-Capital
$
(5
40,000
)
$
5
40,000
Notes
to
Financial
Statements
March
31,
2021
28
www.cornercapfunds.com
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.
During
the
year
ended
March
31,
2021,
the
Fund
utilized
capital
loss
carryforwards
to
offset
capital
gains
amounting
to
$6,054,340.
The
amount
of
net
unrealized
appreciation
(depreciation)
and
the
cost
of
investment
securities
for
tax
purposes,
including
short-term
securities
as
of
March
31,
2021
,
were
as
follows:
5.
INVESTMENT
ADVISORY
AND
OTHER
RELATED
PARTY
TRANSACTIONS
A.
The
Fund
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,
the
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
0.40%
and
0.10%
of
the
average
daily
net
assets
of
the
Fund
Investor
and
Institutional
Shares,
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
the
Fund
so
as
to
limit
the
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:
Undistributed
ordinary
income
$
11,623,958
Undistributed
long-term
gain
2,2
04,761
Net
unrealized
appreciation
on
investments
35,474,293
Total
$
49,3
03,012
Gross
unrealized
appreciation
(excess
of
value
over
tax
cost)
$
38,774,174
Gross
unrealized
depreciation
(excess
of
tax
cost
over
value)
(3,299,881)
Net
unrealized
appreciation
$
35,474,293
Cost
of
investments
for
income
tax
purposes
$
134,281,032
Notes
to
Financial
Statements
March
31,
2021
Annual
Report
I
March
31,
2021
29
The
contractual
agreement
cannot
be
terminated
prior
to
August
1,
2021,
without
the
Board
of
Trustees’
approval.
For
the
year
ended
March
31,
2021,
the
Adviser
did
not
waive
fees
or
reimburse
expenses
for
the
Fund.
B.
The
Fund
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
Fund
to
Fund
operational
service
providers
pursuant
to
the
following
agreements:
1)
Atlantic
Fund
Administration,
LLC,
a
wholly
owned
subsidiary
of
Apex
US
Holdings,
LLC
(d/b/a
Apex
Fund
Services)
(“Apex”)
provides
fund
accounting,
fund
administration
services
and
transfer
agency
services
to
the
Fund.
Pursuant
to
an
Apex
services
agreement,
the
Adviser
pays
Apex
customary
fees
for
its
services
from
the
Operating
Services
Fee
it
receives
from
the
Fund.
Apex
also
provides
certain
shareholder
report
production,
and
EDGAR
conversion
and
filing
services;
2)
Foreside
Fund
Services,
LLC
serves
as
the
Fund’s
distributor
(the
“Distributor”).
The
Distributor
is
not
affiliated
with
the
Adviser
or
Apex
or
their
affiliates.
In
addition,
the
Adviser
pays
all
other
operating
expenses
of
the
Fund,
as
outlined
in
the
Operating
Services
Agreement.
Certain
trustees
and
officers
of
the
Fund
are
also
directors
and
officers
of
the
Adviser.
6.
PURCHASES
AND
SALES
OF
SECURITIES
Investment
transactions
for
the
year
ended
March
31,
2021
,
excluding
short-term
investments,
were
as
follows:
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,
2021
,
Charles
Schwab
&
Co.
held
approximately
65.46%
of
the
Fund.
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
Total
Annual
Fund
Operating
Expense
Limitation
Investor
Shares
1.30%
Purchases
Sales
$
159,874,514
$
157,562,582
Notes
to
Financial
Statements
March
31,
2021
30
www.cornercapfunds.com
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.
SUBSEQUENT
EVENTS
In
preparing
these
financial
statements,
management
has
evaluated
events
and
transactions
for
potential
recognition
or
disclosure
through
the
date
the
financial
statements
were
issued.
There
were
no
events
or
transactions
that
occurred
during
the
period
subsequent
to
the
end
of
the
current
fiscal
period
that
materially
impacted
the
amounts
or
disclosures
in
the
Fund's
financial
statements.
Report
of
Independent
Registered
Public
Accounting
Firm
Annual
Report
I
31
To
the
Shareholders
and
Board
of
Trustees
of
CornerCap
Group
of
Funds
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
CornerCap
Group
of
Funds,
comprising
CornerCap
Small-Cap
Value
Fund
(the
“Fund”)
as
of
March
31,
2021,
the
related
statement
of
operations
for
the
year
then
ended,
the
statement
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
the
Fund
as
of
March
31,
2021,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
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
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
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
Fund
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,
2021,
by
correspondence
with
the
custodians
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
Fund’s
auditor
since
2004.
COHEN
&
COMPANY,
LTD.
Cleveland,
Ohio
May
28,
2021
Additional
Information
March
31,
2021
(Unaudited)
32
www.cornercapfunds.com
PROXY
VOTING
POLICY
A
copy
of
the
policies
and
procedures
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
is
available
without
charge,
upon
request,
by
calling
the
Fund
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
Fund
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.
AVAILABILITY
OF
QUARTERLY
PORTFOLIO
SCHEDULE
The
Fund
files
its
complete
schedule
of
positions
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
on
Form
N‐PORT.
Forms
N-PORT
are
available
free
of
charge
on
the
SEC’s
website
at
www.sec.gov
or
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.
COMPENSATION
OF
TRUSTEES
No
interested
Trustee,
officer,
or
employee
of
the
Fund
receives
any
compensation
from
the
Funds
or
Adviser
for
serving
as
an
officer
or
Trustee
of
the
Fund.
Each
Independent
Trustee
receives
an
annual
retainer
of
$8,000,
$5,000
for
each
regular
meeting
or
special
in-person
meeting
of
the
Trustees,
and
$2,000
for
each
special
meeting
attended
by
telephone;
members
of
the
Audit
Committee
are
paid
$1,600
per
Audit
Committee
meeting,
and
the
Audit
Committee
Chairman
is
paid
$3,200
per
Audit
Committee
meeting.
The
Audit
Committee
will
normally
meet
twice
a
year.
Independent
Trustee
and
Audit
Committee
compensation
is
paid
by
the
Adviser.
TAX
DESIGNATIONS
For
federal
income
tax
purposes,
dividends
from
short-term
capital
gains
are
classified
as
ordinary
income.
The
Fund
designates
the
following
for
federal
income
tax
purposes
for
distributions
made
during
the
calendar
year
ended
December
31,
2020
:
Pursuant
to
Section
852(b)(3)
of
the
Internal
Revenue
Code,
the
Fund
had
$5
40,0
00
of
equalization
classified
as
long
term
for
the
year.
TRUSTEES
AND
OFFICERS
The
business
affairs
of
the
Fund
is
managed
under
the
direction
of
the
Fund’s
Board
of
Trustees
in
accordance
with
the
laws
of
the
State
of
Massachusetts.
Information
pertaining
to
the
Trustees
and
Officers
of
the
Fund
is
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
Dividends
Received
Deduction
100.00
%
Qualified
Dividend
Income
100.0
0%
Additional
Information
March
31,
2021
(Unaudited)
Annual
Report
I
March
31,
2021
33
persons
of
the
Trust
as
defined
in
the
1940
Act
are
referred
to
as
“Interested
Trustees”.
The
Fund’s
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
1
Chief
Financial
Officer,
CornerCap
Investment
Counsel
(since
1989);
Chief
Executive
Officer,
CornerCap
Investment
Counsel
(1989-2020);
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
1
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.
since
1991.
Laurin
M.
McSwain
Born:
1951
Trustee
since
1994
1
Attorney,
Lefkoff,
Duncan,
Grimes,
McSwain
&
Hass,
(2003-present).
None
Leslie
W.
Gates
Born:
1955
Trustee
since
2006
1
Retired,
2005.
Partner,
Williams
Benator
&
Libby,
LLP
(CPA
firm)
(1989-2004).
None
G.
Harry
Durity
Born:
1946
Trustee
1992-2004,
since
2010
1
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
Fund
at:
P.O.
Box
588,
Portland,
ME
04112.
Additional
Information
March
31,
2021
(Unaudited)
34
www.cornercapfunds.com
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
Portfolio
Manager
(since
1996)
and
Chief
Investment
Officer
(since
2020),
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
Executive
Officer,
CornerCap
Investment
Counsel
(since
2020);
Chief
Compliance
Officer,
CornerCap
Investment
Counsel(2013-2020).
Chief
Compliance
Officer,
Church
Investment
Group
(non-profit)
J.
Cannon
Carr,
Jr.
The
Peachtree,
Suite
1700
1355
Peachtree
St.
NE
Atlanta,
GA
30309
Born:
1967
Vice
President
of
the
Funds
since
2019
N/A
Chief
Executive
Officer,
CornerCap
Investment
Counsel
(since
2020);
Chief
Investment
Officer,
CornerCap
Investment
Counsel
(2013-2020).
N/A
www.cornercapfunds.com
888-813-8637
DISTRIBUTOR
Foreside
Fund
Services,
LLC
Three
Canal
Plaza,
Suite
100
Portland,
Maine
04101
www.foreside.com
This
report
is
submitted
for
the
general
information
of
the
shareholders
of
the
Fund.
It
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
an
effective
prospectus,
which
includes
information
regarding
the
Fund’s
risks,
objectives,
fees
and
expenses,
experience
of
their
management
and
other
information.
232-ANR-0321
ITEM 2. CODE OF ETHICS.
The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or any persons performing similar functions on behalf of the registrant. The registrant’s Code of Ethics is attached as an Exhibit hereto under Item 13(a)(1) of this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the registrant has determined that there is no “audit committee financial expert” serving on its audit committee. In this regard, the Board also determined that having such a person serve on its audit committee was unnecessary in light of the structure of the registrant’s operations and the broad range of experience and expertise in financial matters possessed by the members of the audit committee, even though no such member was considered to have been an audit committee financial expert under the relatively narrow definition of such term.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees - The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant for the audit of the Registrant’s annual financial statements, or services that are normally provided by the principal accountant in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $31,750 in 2020 and $13,000 in 2021.
(b) Audit-Related Fees – The aggregate fees billed in the Reporting Periods for assurance and related services rendered by the principal accountant that were reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2020 and $0 in 2021.
(c) Tax Fees - The aggregate fees billed in the Reporting Periods for professional services rendered by the principal accountant to the Registrant for tax compliance, tax advice and tax planning were $6,300 in 2020 and $6,300 in 2021. These services consisted of review or preparation of U.S. federal, state, local and excise tax returns.
(d) All Other Fees - The aggregate fees billed in the Reporting Periods for products and services provided by the principal accountant to the Registrant, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2020 and $0 in 2021.
(e) (1) Audit Committee Pre-Approval Policies and Procedures: The registrant’s Audit Committee has not adopted pre-approval policies and procedures. Instead, the Audit Committee approves each audit and non-audit service before the accountant is engaged to provide such service.
(e) (2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable
(g) The aggregate non-audit fees billed by the principal accountant for services rendered to the Registrant for the Reporting Periods were $0 in 2020 and $0 in 2021. There were no fees billed in either of the Reporting Periods for non-audit services rendered by the principal accountant to the Registrant’s investment adviser or any Affiliate.
(h) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Included as part of the report to shareholders under Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Note applicable.
ITEM 11. CONTROLS AND PROCEDURES
(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in
Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. EXHIBITS.
(a)(3) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant CornerCap Group of Funds
By: | /s/ Thomas E. Quinn | |
Thomas E. Quinn | ||
President | ||
Date: | May 28, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Thomas E. Quinn | |
Thomas E. Quinn | ||
President (Principal Executive Officer) and Treasurer (Principal Financial Officer) | ||
Date: | May 28, 2021 |