Cornercap Group Of Funds NCSRS Certified semi-annual shareholder report (management investment company)

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

(Exact name of registrant as specified in charter)

The Peachtree, Suite 1700, 1355 Peachtree Street NE, Atlanta, Georgia 30309

(Address of principal executive offices) (Zip code)

Jennifer Welsh

ALPS Fund Services, Inc.

1290 Broadway, Suite 1100, Denver, Colorado 80203

(Name and address of agent for service)

Registrant’s telephone number, including area code: (404) 870-0700

Date of fiscal year end: March 31

Date of reporting period: April 1, 2014 – September 30, 2014

Item 1. Reports to Stockholders.

LOGO

Table of Contents


Manager’s Report to Shareholders			1
CornerCap Balanced Fund			3
CornerCap Small-Cap Value Fund			5
CornerCap Large/Mid-Cap Value Fund			7

Fund Expenses			9

Schedule of Investments
CornerCap Balanced Fund			11
CornerCap Small-Cap Value Fund			17
CornerCap Large/Mid-Cap Value Fund			24

Statements of Assets and Liabilities			28

Statements of Operations			30

Statements of Changes in Net Assets
CornerCap Balanced Fund			32
CornerCap Small-Cap Value Fund			33
CornerCap Large/Mid-Cap Value Fund			33

Financial Highlights
CornerCap Balanced Fund			34
CornerCap Small-Cap Value Fund			36
CornerCap Large/Mid-Cap Value Fund			38

Notes to Financial Statements			40

Additional Information			47

Manager’s Report to Shareholders (Unaudited)

September 30, 2014

Dear Shareholder:

Following this shareholder letter are the portfolio valuation and financial reports for the semiannual period ending September 30, 2014. Except for a couple of brief hiccups, we have experienced a steady compounding of returns since the market bottom 5.5 years ago in March 2009. Over this extraordinary period, the large and small cap stock indices have compounded at slightly over 20% a year, and, as noted below, our equity mutual funds have exceeded these benchmarks.

Before we get into comparing investment results to benchmarks (relative returns), we should highlight a significant split in the absolute returns for the quarter ending September 30, 2014. The S&P 500 Index (reflecting large cap stock returns) was up 1.13%, while the Russell 2000 Value Index for smaller caps was down 8.58%. This was almost a 10% spread. Over time smaller stocks have offered higher growth but more volatility or risk. The small cap sector generally led the recovery until the fall of 2013. Since then, larger capitalization, higher quality and lower beta stocks have taken the lead.

Small Cap Equities

Our CornerCap Small Cap Value Fund realized a -6.67% return for the quarter and -6.15% for the six-month period. Although negatives are not favorable, these returns compare favorably to the Russell 2000 Value Index that returned -8.58% and -6.40%, respectively, over these periods. For the 5.5 year period noted above, the average annual returns were 23.09% for the fund and 19.55% for the benchmark.

Even though the growth style has recently outpaced value investing, our price to free cash flow value screen added the most value last quarter. We have a few growth factors in our composite stock valuation, and these attributes (like earnings revisions) also contributed to our outperformance of the benchmark. Another important contribution to our recent returns has been a risk overlay that we use to screen out weaker stocks (i.e., potential torpedoes) from our solely valuation-based stock selections.

Large Cap Equities

Our CornerCap Large/Mid Cap Value Fund realized a 0.42% return for the quarter and 4.18% for the six-month period. These returns underperformed the S&P 500 Index benchmark which delivered 1.13% and 6.42%, respectively. Because of our consistent tilt toward value, we also measure returns against the large cap Russell 1000 Value Index which returned -0.19% for the quarter and 4.90% for the six-month period. Over the 5.5 year bull market period, our fund has realized a 20.69% average annual return versus 20.41% for the S&P 500 Index.

Even though handicapped by the style shift away from value investments, our Fundametrics^® quantitative research and stock selection processes performed reasonably well. The most notable contributors were our (1) price to free cash flow valuation; (2) earnings surprise and price momentum growth attributes; and (3) our strict sell discipline. Our relative returns have also been hurt by an investor flight to safety, which we have quantified by an investor preference for higher capitalization stocks, lower beta* and lower volatility. Our relative performance is usually hurt by this type of fearful investing, primarily because we equal weight our holdings (versus capitalization weight) and we avoid looking like the overall market (i.e., not a “closet” index fund).


Semi-Annual Report \| September 30, 2014		1

Manager’s Report to Shareholders (Unaudited)

September 30, 2014

CornerCap Balanced Fund

Our CornerCap Balanced Fund returned 0.06% for the quarter and 2.97% for the semiannual reporting period. The target asset allocation for our balanced fund is 60% large/mid cap stocks, and these stocks are approximately the same holdings as in our large/mid cap fund. The other 40% of the portfolio is targeted for short to intermediate term fixed income securities. The benchmark that we use is 60% of the S&P 500 Index return and 40% of the Barclay’s Intermediate Government/Corporate Bond Index return. For these two periods, quarterly and six-months, our Balanced Fund slightly underperformed the benchmark return of 0.68% and 4.33%, respectively. For the longer 5.5 year bull market period, this more conservative fund had an average annual return of 13.92% versus 13.84% for the benchmark.

Bond yields this year have continued to be modest. There was a slight increase in rates in anticipation of the Fed ending their extended bond buying program. But many are questioning the true ending of this program because of weak economic news and a fear of deflation, especially in Europe.

Unlike many equity focused mutual funds in the marketplace, we have attracted a loyal number of long term, low turnover shareholders to our no-load mutual funds. Our shareholders have always been our outsourced marketing department. We appreciate your investment and your enabling our fund company to go from less than $1 million in 1993 to $99.1 million as of September 30, 2014.

CornerCap Investment Counsel

November 1, 2014

Beta – A measurement of a fund’s trailing 36-month returns in relation to the overall market (or appropriate market index). Beta of 1 – share price will typically move with the market; Beta more than 1 – share price will typically be more volatile than the market; Beta less than 1 – share price will typically be less volatile than the market.

The Letter to Shareholders seeks to describe some of CornerCap Investment Counsel’s current opinions and views of the financial markets. Although CornerCap Investment Counsel believes it has a reasonable basis for any opinions or views expressed, actual results may differ, sometimes significantly so, from those expected or expressed.

Diversification does not eliminate the risk of experiencing investment loss.


2		www.cornercapfunds.com

Manager’s Report to Shareholders (Unaudited)

September 30, 2014

CORNERCAP BALANCED FUND

Total Return

for the period ended September 30, 2014


	1 Year	5 Year	10 Year	Since Inception^(b)	Gross Expense Ratio	Net Expense Ratio^(c)

CornerCap Balanced Fund^(a)	13.28%	9.40%	6.24%	5.97%	1.41%	1.21%

Combined 60% S&P 500^® Index/40% Barclays Capital U.S. Government/Corporate Bond Index^(d)	12.51%	10.88%	6.76%	6.60%

S&P 500^® Index^(e)	19.73%	15.70%	8.11%	6.93%

Barclays Capital U.S. Government/Corporate Bond Index^(f)	2.20%	3.42%	4.05%	5.24%

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. Visit the Fund’s website at www.cornercapfunds.com or call 888-813-8637 for month-end performance figures.

^(a)

The 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.

^(b)

The Balanced Fund began operations May 24, 1997.

^(c)

CornerCap Investment Counsel, Inc. (the “Adviser”) has entered into a contractual agreement with the Balanced Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Balanced Fund, if necessary, in an amount that limits “Total Annual Fund Operating Expenses” (exclusive of interest, taxes, brokerage fees and commissions, Acquired Fund Fees and Expenses, and extraordinary expenses) to not more than 1.10%. 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, 2015 without the Board of Trustees’ approval.

^(d)

Effective August 17, 2006, the Balanced Fund has elected to use the comparative index 60% S&P 500^® Index and 40% Barclays Capital U.S. Government/Corporate Bond Index.

^(e⁾

The S&P 500^® Index is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index (stock price times number of shares outstanding) with each stock’s weight in the Index proportionate to its market value.


Semi-Annual Report \| September 30, 2014		3

Manager’s Report to Shareholders (Unaudited)

September 30, 2014

^(f)

The Barclays Capital U.S. Government/Corporate Bond 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.

Sector Allocation

as a Percentage of Total Investments at September 30, 2014*

LOGO

*	These allocations may not reflect the current or future position of the portfolio.


4		www.cornercapfunds.com

Manager’s Report to Shareholders (Unaudited)

September 30, 2014

CORNERCAP SMALL-CAP VALUE FUND

Total Return

for the period ended September 30, 2014


	1 Year	5 Year	10 Year	Since Inception^(b)	Gross Expense Ratio	Expense Ratio^(c)

CornerCap Small-Cap Value Fund^(a)	5.42%	14.04%	7.15%	9.57%	1.50%	1.30%

Russell 2000^® Value Index^(d)	4.13%	13.03%	7.25%	11.07%

Russell 2000^® Index^(e)	3.93%	14.29%	8.19%	9.72%

^(a)

The 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.

^(b)

The Small-Cap Value Fund began operations on September 30, 1992.

^(c)

The Adviser has entered into a contractual agreement with the Small-Cap Value Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Small-Cap Value Fund, if necessary, in an amount that limits “Total Annual Fund Operating Expenses” (exclusive of interest, taxes, brokerage fees and commissions, Acquired Fund Fees and Expenses, and extraordinary expenses) to not more than 1.30%. To the extent the Small-Cap Value Fund incurs excluded expenses, the expense ratio will increase. The current contractual agreement cannot be terminated prior to August 1, 2015 without the Board of Trustees’ approval.

^(d)

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. Index returns include dividends and/or interest income and, unlike Fund returns, do not reflect fees or expenses.

^(e)

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.


Semi-Annual Report \| September 30, 2014		5

Manager’s Report to Shareholders (Unaudited)

September 30, 2014

Sector Allocation

as a Percentage of Total Investments at September 30, 2014*

LOGO

*	These allocations may not reflect the current or future position of the portfolio.


6		www.cornercapfunds.com

Manager’s Report to Shareholders (Unaudited)

September 30, 2014

CORNERCAP LARGE/MID-CAP VALUE FUND

Total Return

for the period ended September 30, 2014


	1 Year	5 Year	10 Year	Since Inception^(b)	Gross Expense Ratio	Net Expense Ratio^(c)

CornerCap Large/Mid-Cap Value Fund^(a)	20.01%	13.26%	6.65%	3.00%	1.50%	1.20%

S&P 500^® Index^(d)	19.73%	15.70%	8.11%	4.29%

Russell 1000^® Value Index^(e)	18.89%	15.26%	7.84%	6.89%

^(a)

The 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.

^(b)

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 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.

^(c)

The Adviser has entered into a contractual agreement with the Large/Mid-Cap Value Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Large/Mid-Cap Value Fund, if necessary, in an amount that limits “Total Annual Fund Operating Expenses” (exclusive of interest, taxes, brokerage fees and commissions, Acquired Fund Fees and Expenses, and extraordinary expenses) to not more than 1.20%. To the extent the Large/Mid-Cap Value Fund incurs excluded expenses, the expense ratio will increase. The contractual agreement cannot be terminated prior to August 1, 2015 without the Board of Trustees’ approval.

^(d)


Semi-Annual Report \| September 30, 2014		7

Manager’s Report to Shareholders (Unaudited)

September 30, 2014

^(e)

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.

Sector Allocation

as a Percentage of Total Investments at September 30, 2014*

LOGO

*	These allocations may not reflect the current or future position of the portfolio.


8		www.cornercapfunds.com

Fund Expenses (Unaudited)

As a shareholder of a Fund, you incur two types of costs: transaction costs, such as wire fees, redemption fees, and low balance fees, and ongoing costs, including management fees, and other fund operating expenses. This example is intended to help you understand your indirect costs, also referred to as “ongoing costs” (in dollars), of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period of April 1, 2014 through September 30, 2014.

Actual Expenses The first line 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 at the beginning of the period, 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 “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes The second line of the table 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 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 transaction costs, such as wire fees, redemption fees or 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 direct costs were included, your costs would be higher.


	Beginning Account Value 4/01/2014	Ending Account Value 9/30/2014	Expense Paid During Period^(a)

CornerCap Balanced Fund
Actual Fund Return	$ 1,000.00	$ 1,029.70	$ 5.60
Hypothetical Fund Return
(5% return before expenses)	$ 1,000.00	$ 1,019.55	$ 5.57
CornerCap Small-Cap Value Fund
Actual Fund Return	$ 1,000.00	$ 939.10	$ 6.32
Hypothetical Fund Return
(5% return before expenses)	$ 1,000.00	$ 1,018.55	$ 6.58
CornerCap Large/Mid-Cap Value Fund
Actual Fund Return	$ 1,000.00	$ 1,041.80	$ 6.14
Hypothetical Fund Return
(5% return before expenses)	$ 1,000.00	$ 1,019.05	$ 6.07


Semi-Annual Report \| September 30, 2014		9

Fund Expenses (Unaudited)

^(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 1.10% for Balanced Fund; 1.30% for Small-Cap Value Fund and 1.20% for 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 (183), 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 Fund does not charge any account maintenance fee or sales load, but does 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.


10		www.cornercapfunds.com

Schedule of Investments

CornerCap Balanced Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

COMMON STOCKS (60.2%)
Aerospace & Defense (2.8%)
The Boeing Co.		2,485	$	316,539
General Dynamics Corp.		3,050		387,625

				704,164

Banks (9.0%)
BB&T Corp.		8,120		302,145
Capital One Financial Corp.		4,580		373,820
Citigroup, Inc.		6,295		326,207
The Goldman Sachs Group, Inc.		1,885		346,030
JPMorgan Chase & Co.		5,310		319,874
The PNC Financial Services Group, Inc.		3,495		299,102
Wells Fargo & Co.		6,585		341,564

				2,308,742

Chemicals (1.2%)
Eastman Chemical Co.		3,890		314,662


Commercial Services (1.1%)
The Western Union Co.		18,180		291,607


Computers (3.7%)
EMC Corp.		10,670		312,204
Hewlett-Packard Co.		8,900		315,683
International Business Machines Corp.		1,700		322,711

				950,598

Electric (2.3%)
Pinnacle West Capital Corp.		5,335		291,504
Public Service Enterprise Group, Inc.		8,110		302,017

				593,521

Electrical Components & Equipment (1.2%)
Emerson Electric Co.		4,985		311,961


Food (2.7%)
ConAgra Foods, Inc.		9,990		330,070
The Kroger Co.		6,990		363,480

				693,550

Healthcare Services (2.5%)
Laboratory Corp. of America Holdings^(a)		2,955		300,671
UnitedHealth Group, Inc.		3,860		332,925

				633,596

Insurance (4.8%)
The Allstate Corp.		4,945		303,474
Everest Re Group Ltd.		1,870		302,959
Lincoln National Corp.		6,080		325,766
Reinsurance Group of America, Inc.		3,675		294,478

				1,226,677


Semi-Annual Report \| September 30, 2014		11

Schedule of Investments

CornerCap Balanced Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

Leisure Time (1.2%)
Harley-Davidson, Inc.		5,120	$	297,984


Machinery-Diversified (1.3%)
Deere & Co.		3,910		320,581


Media (1.2%)
Viacom, Inc., Class B		4,000		307,760


Miscellaneous Manufacturing (1.1%)
Dover Corp.		3,565		286,376


Oil & Gas (6.1%)
ConocoPhillips		4,415		337,836
Devon Energy Corp.		4,405		300,333
Ensco PLC, Class A		7,605		314,163
Exxon Mobil Corp.		3,305		310,835
Occidental Petroleum Corp.		3,055		293,738

				1,556,905

Oil & Gas Services (1.2%)
National Oilwell Varco, Inc.		3,915		297,931


Packaging & Containers (1.1%)
Rock-Tenn Co., Class A		6,040		287,383


Pharmaceuticals (2.5%)
Express Scripts Holding Co.^(a)		4,440		313,597
Teva Pharmaceutical Industries Ltd., Sponsored
ADR		5,905		317,394

				630,991

Retail (6.7%)
Bed Bath & Beyond, Inc.^(a)		5,120		337,050
Coach, Inc.		9,245		329,214
Kohl’s Corp.		6,070		370,452
Lowe’s Cos., Inc.		6,675		353,241
Nordstrom, Inc.		4,770		326,125

				1,716,082

Semiconductors (2.6%)
Intel Corp.		10,155		353,597
QUALCOMM, Inc.		4,285		320,390

				673,987

Software (1.2%)
Oracle Corp.		8,220		314,662


Telecommunications (2.7%)
AT&T, Inc.		9,010		317,512


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Schedule of Investments

CornerCap Balanced Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

Telecommunications (2.7%) (continued)
CenturyLink, Inc.		9,450	$	386,411

				703,923


TOTAL COMMON STOCKS (COST $12,950,490)				15,423,643


EXCHANGE TRADED FUNDS (4.0%)
Guggenheim BulletShares^® 2014 High Yield Corporate Bond ETF		21,400		564,532
Guggenheim BulletShares^® 2015 High Yield Corporate Bond ETF		17,315		457,809


TOTAL EXCHANGE TRADED FUNDS (COST $1,037,613)				1,022,341


	Principal Amount		Fair Value

CORPORATE BONDS (25.8%)
Agriculture (0.9%)
Reynolds American, Inc., 6.750%, 06/15/2017	$	200,000		225,737


Auto Manufacturers (1.4%)
Ford Motor Co., 9.215%, 09/15/2021		275,000		364,126


Banks (2.2%)
Bank of America Corp., 4.750%, 08/15/2020		250,000		265,848
The Goldman Sachs Group, Inc., 4.000%, 03/18/2029^(b)		300,000		288,900

				554,748


Chemicals (1.8%)
CF Industries, Inc., 7.125%, 05/01/2020		250,000		301,665
The Dow Chemical Co., 2.500%, 02/15/2016		150,000		153,197

				454,862


Cosmetics & Personal Care (0.7%)
The Estee Lauder Co., Inc., 5.550%, 05/15/2017		150,000		166,026


Semi-Annual Report \| September 30, 2014		13

Schedule of Investments

CornerCap Balanced Fund

September 30, 2014 (Unaudited)


	Principal Amount		Fair Value

Diversified Financial Services (1.0%)
Credit Suisse USA, Inc., 5.375%, 03/02/2016	$	250,000	$	265,915


Electronics (2.4%)
Agilent Technologies, Inc., 5.000%, 07/15/2020		270,000		293,733
Tech Data Corp., 3.750%, 09/21/2017		300,000		310,734

				604,467


Entertainment (1.1%)
International Game Technology, 7.500%, 06/15/2019		250,000		282,866


Food (0.8%)
Safeway, Inc., 3.950%, 08/15/2020		200,000		200,754


Healthcare Services (1.1%)
Humana, Inc., 6.300%, 08/01/2018		250,000		284,957


Home Furnishings (0.6%)
Whirlpool Corp., 6.500%, 06/15/2016		150,000		163,637


Insurance (2.3%)
The Travelers Cos., Inc., 5.900%, 06/02/2019		150,000		173,941
W.R. Berkley Corp., 5.600%, 05/15/2015		150,000		154,276
5.375%, 09/15/2020		230,000		255,443

				583,660


Lodging (1.0%)
Starwood Hotels & Resorts Worldwide, Inc., 7.375%, 11/15/2015		250,000		268,017


Media (1.1%)
DIRECTV Holdings LLC / DIRECTV Financing Co., Inc, 5.000%, 03/01/2021		255,000		282,433


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Schedule of Investments

CornerCap Balanced Fund

September 30, 2014 (Unaudited)


	Principal Amount		Fair Value

Oil & Gas (1.9%)
Chesapeake Energy Corp., 6.625%, 08/15/2020	$	285,000	$	314,355
Statoil ASA, 6.700%, 01/15/2018		150,000		173,830

				488,185


Retail (5.5%)
AutoZone, Inc., 5.500%, 11/15/2015		150,000		157,824
Best Buy Co., Inc., 3.750%, 03/15/2016		200,000		204,000
Dillard’s, Inc., 6.625%, 01/15/2018		275,000		301,813
Foot Locker, Inc., 8.500%, 01/15/2022		385,000		462,000
Walgreen Co., 3.100%, 09/15/2022		305,000		295,167

				1,420,804


TOTAL CORPORATE BONDS (COST $6,515,739)				6,611,194


MUNICIPAL BONDS (1.9%)
Kansas (0.6%)
Johnson County KS, Build America General Obligation Bonds, Unified School District No. 232, 4.950%, 09/01/2019		150,000		155,094


North Dakota (0.7%)
Grand Forks ND, Build America Revenue Bonds, Series A, 4.500%, 09/01/2019		150,000		164,067


Texas (0.6%)
County of Galveston TX, Build America General Obligation Bonds, Series B, 4.200%, 02/01/2017		150,000		158,591


TOTAL MUNICIPAL BONDS (COST $453,131)				477,752


CERTIFICATES OF DEPOSIT (0.9%)
Goldman Sachs Bank USA, Medium-Term Certificate of Deposit, 0.800%, 08/06/2015		250,000		250,447


TOTAL CERTIFICATES OF DEPOSIT (COST $250,000)				250,447


Semi-Annual Report \| September 30, 2014		15

Schedule of Investments

CornerCap Balanced Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

SHORT TERM INVESTMENTS (7.4%)
Federated Treasury Obligation Money Market Fund, 7 Day Yield 0.010%		1,891,413	$	1,891,413


TOTAL SHORT TERM INVESTMENTS (COST $1,891,413)				1,891,413


TOTAL INVESTMENTS (COST $23,098,386)		100.2%		25,676,790


TOTAL LIABILITIES IN EXCESS OF OTHER ASSETS		(0.2%)		(53,690)


NET ASSETS		100.0%	$	25,623,100

^(a)

Non-Income Producing Security.

^(b)

Represents a step bond. Rate disclosed is as of September 30, 2014.

Common Abbreviations:

ADR - American Depositary Receipt.

ASA - Allmennaksjeselskap is the Norwegian term for a public limited company.

ETF - Exchange Traded Fund.

LLC - Limited Liability Company.

Ltd. - Limited.

PLC - Public Limited Company.

The accompanying notes to the financial statements are an integral part of these financial statements.


16		www.cornercapfunds.com

Schedule of Investments

CornerCap Small-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

COMMON STOCKS (95.9%)
Aerospace & Defense (1.1%)
AAR Corp.		13,950	$	336,892
Kaman Corp.		9,035		355,076

				691,968

Apparel (0.5%)
Steven Madden Ltd.^(a)		10,060		324,234


Auto Manufacturers (0.6%)
Wabash National Corp.^(a)		25,285		336,796


Auto Parts & Equipment (2.4%)
Cooper Tire & Rubber Co.		14,270		409,549
Douglas Dynamics, Inc.		21,560		420,420
Standard Motor Products, Inc.		10,750		370,122
Tower International, Inc.^(a)		10,505		264,621

				1,464,712


Banks (15.4%)
1st Source Corp.		11,805		336,206
Arrow Financial Corp.		14,081		353,011
City Holding Co.		8,410		354,313
Community Trust Bancorp, Inc.		9,916		333,475
Enterprise Financial Services Corp.		17,685		295,693
Financial Institutions, Inc.		15,535		349,227
First Business Financial Services, Inc.		9,130		400,807
First Community Bancshares, Inc.		22,725		324,740
First Financial Corp.		10,585		327,606
First Interstate BancSystem, Inc.		11,520		306,086
First Merchants Corp.		19,010		384,192
FirstMerit Corp.		20,540		361,504
German American Bancorp, Inc.		13,350		344,563
Great Southern Bancorp, Inc.		12,220		370,755
Horizon Bancorp		14,725		339,264
Lakeland Bancorp, Inc.		32,481		317,015
Lakeland Financial Corp.		8,685		325,688
MainSource Financial Group, Inc.		23,020		397,095
NBT Bancorp, Inc.		14,780		332,846
Old National Bancorp		24,235		314,328
PrivateBancorp, Inc.		15,095		451,491
S&T Bancorp, Inc.		15,750		369,495
S.Y. Bancorp, Inc.		11,910		358,491
Tompkins Financial Corp.		7,405		326,412
Towne Bank/Portsmouth VA		23,960		325,377
Walker & Dunlop, Inc.^(a)		26,625		353,846
WesBanco, Inc.		10,540		322,419

				9,375,945


Semi-Annual Report \| September 30, 2014		17

Schedule of Investments

CornerCap Small-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

Biotechnology (0.7%)
Charles River Laboratories International, Inc.^(a)		6,705	$	400,557


Building Materials (1.7%)
Boise Cascade Co.^(a)		11,825		356,405
Drew Industries, Inc.		8,140		343,427
Universal Forest Products, Inc.		7,445		317,976

				1,017,808

Chemicals (0.6%)
A. Schulman, Inc.		10,055		363,589


Commercial Services (9.4%)
ABM Industries, Inc.		13,480		346,301
American Public Education, Inc.^(a)		7,915		213,626
AMN Healthcare Services, Inc.^(a)		27,495		431,671
Apollo Group, Inc., Class A^(a)		13,295		334,369
The Brink’s Co.		12,740		306,270
Cardtronics, Inc.^(a)		9,680		340,736
CDI Corp.		23,220		337,154
ExlService Holdings, Inc.^(a)		13,315		325,019
Global Cash Access Holdings, Inc.^(a)		44,245		298,654
Green Dot Corp., Class A^(a)		19,150		404,831
ICF International, Inc.^(a)		8,955		275,724
Korn/Ferry International^(a)		16,715		416,204
Matthews International Corp., Class A		8,910		391,060
Multi-Color Corp.		8,015		364,522
Navigant Consulting, Inc.^(a)		21,545		299,691
On Assignment, Inc.^(a)		13,090		351,467
RPX Corp.^(a)		22,245		305,424

				5,742,723

Computers (3.1%)
Computer Task Group, Inc.		29,660		329,226
Datalink Corp.^(a)		26,185		278,347
Engility Holdings, Inc.^(a)		10,355		322,765
Insight Enterprises, Inc.^(a)		12,440		281,517
Mentor Graphics Corp.		17,945		367,783
Sykes Enterprises, Inc.^(a)		16,265		324,975

				1,904,613

Diversified Financial Services (3.3%)
Higher One Holdings, Inc.^(a)		54,640		134,961
Investment Technology Group, Inc.^(a)		20,290		319,770
JG Wentworth Co., Class A^(a)		25,930		321,273
JMP Group, Inc.		55,445		347,640
Oppenheimer Holdings, Inc., Class A		14,100		285,525
Piper Jaffray Cos.^(a)		6,855		358,105


18		www.cornercapfunds.com

Schedule of Investments

CornerCap Small-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

Diversified Financial Services (3.3%) (continued)
Regional Management Corp.^(a)		14,490	$	260,096

				2,027,370

Electric (2.3%)
Avista Corp.		13,090		399,638
EnerNOC, Inc.^(a)		19,180		325,293
UIL Holdings Corp.		10,195		360,903
Unitil Corp.		10,980		341,368

				1,427,202

Electrical Components & Equipment (0.6%)
SL Industries, Inc.^(a)		7,175		350,283


Electronics (3.4%)
Newport Corp.^(a)		18,910		335,085
Plexus Corp.^(a)		8,985		331,816
Sanmina Corp.^(a)		20,580		429,299
Tech Data Corp.^(a)		5,205		306,366
Vishay Intertechnology, Inc.		22,330		319,096
ZAGG, Inc.^(a)		68,400		381,672

				2,103,334

Engineering & Construction (0.6%)
EMCOR Group, Inc.		8,595		343,456


Food (2.0%)
Cal-Maine Foods, Inc.		6,490		579,751
Ingles Markets, Inc., Class A		14,755		349,546
SpartanNash Co.		15,462		300,736

				1,230,033

Forest Products & Paper (1.9%)
KapStone Paper and Packaging Corp.^(a)		11,655		325,990
Neenah Paper, Inc.		8,285		443,082
Schweitzer-Mauduit International, Inc.		9,045		373,649

				1,142,721

Gas (1.2%)
Delta Natural Gas Co., Inc		17,655		349,039
New Jersey Resources Corp.		7,060		356,601

				705,640

Hand & Machine Tools (0.5%)
Regal-Beloit Corp.		5,090		327,032


Healthcare Products (1.3%)
Exactech, Inc.^(a)		16,875		386,269
Symmetry Medical, Inc.^(a)		39,170		395,225

				781,494

Healthcare Services (1.1%)
National Healthcare Corp.		6,220		345,272


Semi-Annual Report \| September 30, 2014		19

Schedule of Investments

CornerCap Small-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

Healthcare Services (1.1%) (continued)
Select Medical Holdings Corp.		26,670	$	320,840

				666,112

Home Builders (0.5%)
Thor Industries, Inc.		6,360		327,540


Home Furnishings (1.6%)
Daktronics, Inc.		25,265		310,507
Ethan Allen Interiors, Inc.		13,960		318,288
Flexsteel Industries, Inc.		10,800		364,284

				993,079

Household Products (1.0%)
Ennis, Inc.		21,450		282,496
Helen of Troy Ltd.^(a)		6,480		340,330

				622,826

Insurance (7.4%)
AmTrust Financial Services, Inc.		9,640		383,865
Aspen Insurance Holdings, Ltd.		8,345		356,915
Fidelity & Guaranty Life		15,380		328,363
Greenlight Capital Re Ltd., Class A^(a)		10,295		333,661
Horace Mann Educators Corp.		11,815		336,846
Maiden Holdings Ltd.		30,475		337,663
Montpelier Re Holdings Ltd.		10,830		336,705
The Navigators Group, Inc.^(a)		5,615		345,322
Primerica, Inc.		6,930		334,164
Selective Insurance Group, Inc.		15,585		345,052
Symetra Financial Corp.		16,960		395,677
United Insurance Holdings Corp.		23,075		346,125
Universal Insurance Holdings, Inc.		27,030		349,498

				4,529,856

Internet (0.4%)
Lionbridge Technologies, Inc.^(a)		60,085		270,382


Leisure Time (1.5%)
Arctic Cat, Inc.		9,345		325,393
Interval Leisure Group, Inc.		16,785		319,754
Steiner Leisure Ltd.^(a)		7,570		284,556

				929,703

Machinery-Diversified (0.6%)
Kadant, Inc.		9,340		364,727


Media (1.1%)
Journal Communications, Inc., Class A^(a)		40,355		340,193
Meredith Corp.		7,820		334,696

				674,889


20		www.cornercapfunds.com

Schedule of Investments

CornerCap Small-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

Metal Fabricate & Hardware (0.5%)
Worthington Industries, Inc.		8,935	$	332,561


Miscellaneous Manufacturers (0.5%)
Tredegar Corp.		18,020		331,748


Miscellaneous Manufacturing (4.0%)
Blount International, Inc.^(a)		25,690		388,690
Chase Corp.		11,700		364,104
Federal Signal Corp.		24,100		319,084
Hillenbrand, Inc.		10,535		325,426
Park-Ohio Holdings Corp.		6,210		297,210
Standex International Corp.		5,905		437,797
TriMas Corp.^(a)		11,725		285,269

				2,417,580

Oil & Gas (2.7%)
Delek US Holdings, Inc.		9,910		328,219
Parker Drilling Co.^(a)		66,495		328,485
PBF Energy, Inc., Class A		12,910		309,840
Unit Corp.^(a)		5,580		327,267
Warren Resources, Inc.^(a)		68,775		364,508

				1,658,319

Oil & Gas Services (2.0%)
Gulfmark Offshore, Inc., Class A		8,040		252,054
Helix Energy Solutions Group, Inc.^(a)		14,920		329,135
Hornbeck Offshore Services, Inc.^(a)		8,770		287,042
Tesco Corp.		17,205		341,520

				1,209,751

Packaging & Containers (0.6%)
Silgan Holdings, Inc.		7,115		334,405


Pharmaceuticals (1.7%)
Nutraceutical International Corp.^(a)		13,885		290,335
Omega Protein Corp.^(a)		33,855		423,188
PharMerica Corp.^(a)		13,490		329,561

				1,043,084

Retail (4.1%)
The Cato Corp., Class A		11,085		381,989
Einstein Noah Restaurant Group, Inc.		22,645		456,523
The Finish Line, Inc., Class A		10,490		262,565
Genesco, Inc.^(a)		4,665		348,709
GNC Holdings, Inc., Class A		10,855		420,523
Pier 1 Imports, Inc.		23,195		275,788
Ruth’s Hospitality Group, Inc.		32,375		357,420

				2,503,517


Semi-Annual Report \| September 30, 2014		21

Schedule of Investments

CornerCap Small-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

Savings & Loans (2.5%)
Berkshire Hills Bancorp, Inc.		11,250	$	264,263
Dime Community Bancshares, Inc.		15,570		224,208
First Defiance Financial Corp.		12,015		324,525
Flushing Financial Corp.		19,090		348,774
WSFS Financial Corp.		5,165		369,866

				1,531,636

Semiconductors (1.8%)
Cirrus Logic, Inc.^(a)		15,750		328,387
Microsemi Corp.^(a)		14,870		377,847
Ultra Clean Holdings, Inc.^(a)		40,190		359,701

				1,065,935

Software (1.6%)
CSG Systems International, Inc.		13,050		342,954
PDF Solutions, Inc.^(a)		18,635		234,987
Progress Software Corp.^(a)		15,725		375,985

				953,926

Telecommunications (2.7%)
Black Box Corp.		15,480		360,994
IDT Corp., Class B		21,990		353,159
Inteliquent, Inc.		24,885		309,818
NETGEAR, Inc.^(a)		10,870		339,688
Shenandoah Telecommunications Co.		12,600		312,606

				1,676,265

Textiles (1.1%)
Culp, Inc.		16,215		294,302
UniFirst Corp.		3,770		364,145

				658,447

Transportation (1.2%)
ArcBest Corp.		10,615		395,939
Universal Truckload Services, Inc.		13,790		334,408

				730,347

Wholesale Distributors (1.1%)
ScanSource, Inc.^(a)		9,585		331,545
United Stationers, Inc.		8,885		333,810

				665,355

TOTAL COMMON STOCKS (COST $56,887,021)				58,553,500


SHORT TERM INVESTMENTS (3.9%)
Federated Treasury Obligation Money Market Fund, 7 Day Yield 0.010%		2,415,380		2,415,380


TOTAL SHORT TERM INVESTMENTS (COST $2,415,380)				2,415,380


22		www.cornercapfunds.com

Schedule of Investments

CornerCap Small-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares			Fair Value

TOTAL INVESTMENTS (COST $59,302,401)		99.8	%	$	60,968,880


TOTAL ASSETS IN EXCESS OF OTHER LIABILITIES		0.2	%		100,072


NET ASSETS		100.0	%	$	61,068,952

^(a)

Non-Income Producing Security.

Common Abbreviations:

Ltd. - Limited.

The accompanying notes to the financial statements are an integral part of these financial statements.


Semi-Annual Report \| September 30, 2014		23

Schedule of Investments

CornerCap Large/Mid-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

COMMON STOCKS (92.1%)
Aerospace & Defense (2.0%)
The Boeing Co.		1,945	$	247,754


Banks (13.7%)
BB&T Corp.		5,815		216,376
Capital One Financial Corp.		2,960		241,595
Citigroup, Inc.		4,975		257,804
The Goldman Sachs Group, Inc.		1,470		269,848
JPMorgan Chase & Co.		4,240		255,418
The PNC Financial Services Group, Inc.		2,815		240,908
Wells Fargo & Co.		4,460		231,340

				1,713,289

Chemicals (1.9%)
Eastman Chemical Co.		2,890		233,772


Commercial Services (1.8%)
The Western Union Co.		14,020		224,881


Computers (5.9%)
EMC Corp.		8,465		247,686
Hewlett-Packard Co.		7,025		249,177
International Business Machines Corp.		1,240		235,389

				732,252

Electric (3.9%)
Pinnacle West Capital Corp.		4,405		240,689
Public Service Enterprise Group, Inc.		6,720		250,253

				490,942

Electrical Components & Equipment (1.8%)
Emerson Electric Co.		3,690		230,920


Food (4.2%)
ConAgra Foods, Inc.		8,270		273,241
The Kroger Co.		4,885		254,020

				527,261

Healthcare Services (4.1%)
Laboratory Corp. of America Holdings^(a)		2,515		255,901
UnitedHealth Group, Inc.		2,980		257,025

				512,926

Insurance (7.6%)
The Allstate Corp.		4,220		258,982
Everest Re Group Ltd.		1,410		228,434
Lincoln National Corp.		4,440		237,895
Reinsurance Group of America, Inc.		2,810		225,165

				950,476


24		www.cornercapfunds.com

Schedule of Investments

CornerCap Large/Mid-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

Leisure Time (1.9%)
Harley-Davidson, Inc.		4,040	$	235,128


Machinery-Diversified (1.8%)
Deere & Co.		2,810		230,392


Media (2.0%)
Viacom, Inc., Class B		3,180		244,669


Miscellaneous Manufacturing (1.5%)
Dover Corp.		2,270		182,349


Oil & Gas (9.4%)
ConocoPhillips		2,895		221,525
Devon Energy Corp.		3,110		212,040
Ensco PLC, Class A		5,915		244,349
Exxon Mobil Corp.		2,650		249,233
Occidental Petroleum Corp.		2,515		241,817

				1,168,964

Oil & Gas Services (1.8%)
National Oilwell Varco, Inc.		2,875		218,787


Packaging & Containers (1.9%)
Rock-Tenn Co., Class A		5,000		237,900


Pharmaceuticals (4.1%)
Express Scripts Holding Co.^(a)		3,700		261,331
Teva Pharmaceutical Industries Ltd., Sponsored ADR		4,630		248,862

				510,193

Retail (10.4%)
Bed Bath & Beyond, Inc.^(a)		3,955		260,358
Coach, Inc.		7,375		262,624
Kohl’s Corp.		3,995		243,815
Lowe’s Cos., Inc.		5,155		272,802
Nordstrom, Inc.		3,705		253,311

				1,292,910

Semiconductors (4.3%)
Intel Corp.		8,065		280,823
QUALCOMM, Inc.		3,380		252,723

				533,546

Software (1.9%)
Oracle Corp.		6,120		234,274


Telecommunications (4.2%)
AT&T, Inc.		6,935		244,389


Semi-Annual Report \| September 30, 2014		25

Schedule of Investments

CornerCap Large/Mid-Cap Value Fund

September 30, 2014 (Unaudited)


	Shares		Fair Value

Telecommunications (4.2%) (continued)
CenturyLink, Inc.		6,810	$	278,461

				522,850


TOTAL COMMON STOCKS (COST $9,834,000)				11,476,435


SHORT TERM INVESTMENTS (1.7%)
Federated Treasury Obligation Money Market Fund, 7 Day Yield 0.010%		207,731		207,731


TOTAL SHORT TERM INVESTMENTS (COST $207,731)				207,731


TOTAL INVESTMENTS (COST $10,041,731)		93.8%		11,684,166


TOTAL ASSETS IN EXCESS OF OTHER LIABILITIES		6.2%		772,948


NET ASSETS		100.0%	$	12,457,114

^(a)

Non-Income Producing Security.

Common Abbreviations:

ADR - American Depositary Receipt.

Ltd. - Limited.

PLC - Public Limited Company.

The accompanying notes to the financial statements are an integral part of these financial statements.


26		www.cornercapfunds.com

Intentionally Left Blank

Statements of Assets and Liabilities


	CornerCap Balanced Fund
ASSETS:
Investments, at value (Cost - see below)	$	25,676,790
Receivable for investments sold		0
Receivable for fund shares subscribed		0
Dividends and interest receivable		83,630

Total assets		25,760,420


LIABILITIES:
Payable for investments purchased		101,846
Payable for fund shares redeemed		12,000
Advisory fee payable		17,072
Operating services fee payable		6,402

Total liabilities		137,320

Net assets	$	25,623,100


PRICING OF SHARES (NOTE 2):
Net Assets	$	25,623,100
Shares Outstanding		1,604,503

Net asset value, offering and redemption price per share	$	15.97


NET ASSETS CONSISTS OF:
Paid-in capital	$	20,576,862
Accumulated net investment income		284,718
Accumulated net realized gain on investments		2,183,116
Net unrealized appreciation in value of investments		2,578,404

Net assets	$	25,623,100


Cost of Investments	$	23,098,386

The accompanying notes to the financial statements are an integral part of these financial statements.


28		www.cornercapfunds.com

September 30, 2014 (Unaudited)


CornerCap Small-Cap Value Fund		CornerCap Large/Mid-Cap Value Fund


$	60,968,880	$	11,684,166
	1,607,032		310,411
	75,944		524,950
	55,466		10,033

	62,707,322		12,529,560



	1,003,252		60,283
	566,545		0
	42,199		7,095
	26,374		5,068

	1,638,370		72,446

$	61,068,952	$	12,457,114



$	61,068,952	$	12,457,114
	4,000,864		861,833

$	15.26	$	14.45



$	51,666,520	$	9,896,686
	48,148		88,968
	7,687,805		829,025
	1,666,479		1,642,435

$	61,068,952	$	12,457,114


$	59,302,401	$	10,041,731


Semi-Annual Report \| September 30, 2014		29

Statements of Operations


	CornerCap Balanced Fund

INVESTMENT INCOME:
Dividends, (net of foreign withholding taxes of $614, $– and $481)	$	201,835
Interest		119,604

Total investment income		321,439


EXPENSES:
Advisory fees		124,306
Operating services fees		37,292

Total expenses		161,598
Less fees waived/reimbursed by investment advisor		(24,861)

Net expenses		136,737

Net investment income		184,702


REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain on investments		895,524
Change in unrealized depreciation of investments		(377,030)

Net gain/(loss) on investments		518,494

Net increase/(decrease) in net assets resulting from operations	$	703,196

The accompanying notes to the financial statements are an integral part of these financial statements.


30		www.cornercapfunds.com

For the Six Months Ended September 30, 2014 (Unaudited)


CornerCap Small-Cap Value Fund		CornerCap Large/Mid-Cap Value Fund



$	447,056	$	126,499
	0		0

	447,056		126,499



	306,852		58,493
	153,426		29,247

	460,278		87,740
	(61,370)		(17,548)

	398,908		70,192

	48,148		56,307



	2,834,768		754,259
	(6,779,341)		(329,468)

	(3,944,573)		424,791

$	(3,896,425)	$	481,098


Semi-Annual Report \| September 30, 2014		31

Statements of Changes in Net Assets


	CornerCap Balanced Fund

	Six Months Ended September 30, 2014 (Unaudited)		Year Ended March 31, 2014


OPERATIONS:
Net investment income	$	184,702	$	319,952
Net realized gain on investments		895,524		1,938,644
Long-term capital gains distributions from other investment companies		–		39,075
Change in unrealized appreciation/(depreciation) of investments		(377,030)		932,941

Net increase/(decrease) in net assets resulting from operations		703,196		3,230,612


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		–		(290,002)
From net realized gain on investments		–		(830,002)

Total distributions		–		(1,120,004)


CAPITAL SHARE TRANSACTIONS:
Increase in net assets resulting from capital share transactions (see Note 3)		1,399,402		2,117,524
Redemption fees		–		1,894

Net increase from capital shares transactions		1,399,402		2,119,418


Total increase in net assets		2,102,598		4,230,026


NET ASSETS:
Beginning of year		23,520,502		19,290,476

End of period*	$	25,623,100	$	23,520,502


*Including accumulated net investment income of:	$	284,718	$	100,016

The accompanying notes to the financial statements are an integral part of these financial statements.


32		www.cornercapfunds.com


CornerCap Small-Cap Value Fund				CornerCap Large/Mid-Cap Value Fund
Six Months Ended September 30, 2014 (Unaudited)		Year Ended March 31, 2014		Six Months Ended September 30, 2014 (Unaudited)		Year Ended March 31, 2014


$	48,148	$	10,592	$	56,307	$	96,562
	2,834,768		8,729,108		754,259		1,229,947
	–		–		–		–
	(6,779,341)		5,903,304		(329,468)		1,129,991
	(3,896,425)		14,643,004		481,098		2,456,500


	–		–		–		(80,252)
	–		(6,390,497)		–		–
	–		(6,390,497)		–		(80,252)


	5,205,633		14,905,290		1,123,844		311,915
	–		1,568		116		1,001
	5,205,633		14,906,858		1,123,960		312,916

	1,309,208		23,159,365		1,605,058		2,689,164


	59,759,744		36,600,379		10,852,056		8,162,892
$	61,068,952	$	59,759,744	$	12,457,114	$	10,852,056


$	48,148	$	0	$	88,968	$	32,661


Semi-Annual Report \| September 30, 2014		33

Financial Highlights

CornerCap Balanced Fund


Selected data for each share of beneficial interest outstanding throughout the periods indicated:		Six Months Ended September 30, 2014 (Unaudited)

PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year		$15.51

INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.12^(a)
Net realized and unrealized gain/(loss) on investments		0.34


Total Income from Investment Operations		0.46


DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income		–
Distributions from net realized gain on investments		–


Total Dividends and Distributions to Shareholders		–


Paid-in Capital from Redemption Fees		–


Net asset value, end of year		$15.97


Total return		2.97%

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of year (in 000s)		$25,623

RATIOS TO AVERAGE NET ASSETS:
Expenses without fees waived/reimbursed		1.30%^(c)
Expenses		1.10%^(c)
Net investment income		1.49%^(c)

Portfolio turnover rate		23%

^(a)

Calculated using the average shares method.

^(b)

Less than $0.005 per share.

^(c)

Annualized.

^(d)

Effective October 1, 2011, the Adviser agreed to limit expenses at 1.10%. Prior to October 1, 2011, no expense cap was in place.

The accompanying notes to the financial statements are an integral part of these financial statements.


34		www.cornercapfunds.com


Year Ended March 31, 2014	Year Ended March 31, 2013	Year Ended March 31, 2012	Year Ended March 31, 2011	Year Ended March 31, 2010


$14.03	$13.51	$13.65	$12.82	$9.26


0.23^(a)	0.24	0.24	0.26	0.28
2.09	0.78	(0.07)	0.97	3.57


2.32	1.02	0.17	1.23	3.85



(0.22)	(0.24)	(0.31)	(0.40)	(0.29)
(0.62)	(0.26)	–	–	–


(0.84)	(0.50)	(0.31)	(0.40)	(0.29)


0.00^(b)	0.00^(b)	0.00^(b)	0.00^(b)	0.00^(b)


$15.51	$14.03	$13.51	$13.65	$12.82


16.76%	7.85%	1.47%	9.78%	41.77%


$23,521	$19,290	$18,538	$18,427	$15,635


1.30%	1.30%	1.30%	N/A	N/A
1.10%	1.10%	1.20%^(d)	1.30%	1.30%
1.54%	1.82%	1.64%	2.13%	2.45%

43%	40%	38%	31%	32%


Semi-Annual Report \| September 30, 2014		35

Financial Highlights

CornerCap Small-Cap Value Fund


Selected data for each share of beneficial interest outstanding throughout the periods indicated:		Six Months Ended September 30, 2014 (Unaudited)

PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year		$16.25

INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)		0.01^(a)
Net realized and unrealized gain/(loss) on investments		(1.00)


Total Income/(Loss) from Investment Operations		(0.99)


DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income		–
Distributions from net realized gain on investments		–


Total Dividends and Distributions to Shareholders		–


Paid-in Capital from Redemption Fees		–


Net asset value, end of year		$15.26


Total return		(6.09)%

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of year (in 000s)		$61,069

RATIOS TO AVERAGE NET ASSETS:
Expenses without fees waived/reimbursed		1.50%^(c)
Expenses		1.30%^(c)
Net investment income/(loss)		0.16%^(c)

Portfolio turnover rate		46%

^(a)

Calculated using the average shares method.

^(b)

Less than $0.005 per share.

^(c)

Annualized.

^(d)

Effective October 1, 2011, the Adviser agreed to limit expenses at 1.30%. Prior to October 1, 2011, no expense cap was in place.

The accompanying notes to the financial statements are an integral part of these financial statements.


36		www.cornercapfunds.com


Year Ended March 31, 2014	Year Ended March 31, 2013	Year Ended March 31, 2012	Year Ended March 31, 2011	Year Ended March 31, 2010


$13.74	$12.98	$13.51	$10.57	$5.83


0.00^(a)(b)	0.10	0.03	(0.07)	(0.07)
4.51	1.46	(0.56)	3.01	4.81


4.51	1.56	(0.53)	2.94	4.74



–	(0.13)	–	–	–
(2.00)	(0.67)	–	–	–


(2.00)	(0.80)	–	–	–


0.00^(b)	0.00^(b)	0.00^(b)	0.00^(b)	0.00^(b)


$16.25	$13.74	$12.98	$13.51	$10.57


33.09%	12.70%	(3.92)%	27.81%	81.30%


$59,760	$36,600	$22,922	$22,872	$16,448


1.50%	1.50%	1.50%	N/A	N/A
1.30%	1.30%	1.40%^(d)	1.50%	1.50%
0.02%	0.74%	0.30%	(0.62)%	(0.75)%

109%	131%	56%	61%	52%


Semi-Annual Report \| September 30, 2014		37

Financial Highlights

CornerCap Large/Mid-Cap Value Fund


Selected data for each share of beneficial interest outstanding throughout the periods indicated:	Six Months Ended September 30, 2014 (Unaudited)

PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year		$13.87

INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)		0.07^(b)
Net realized and unrealized gain/(loss) on investments		0.51


Total Income/(Loss) from Investment Operations		0.58


DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income		–
Distributions from net realized gain on investments		–


Total Dividends and Distributions to Shareholders		–


Paid-in Capital from Redemption Fees		0.00^(d)


Net asset value, end of year		$14.45


Total return		4.18%

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of year (in 000s)		$12,457

RATIOS TO AVERAGE NET ASSETS:
Expenses without fees waived/reimbursed		1.50%^(e)
Expenses		1.20%^(e)
Net investment income/(loss)		0.96%^(e)

Portfolio turnover rate		25%

(a)

Prior to July 29, 2010, the CornerCap Large/Mid-Cap Value Fund was known as the CornerCap Contrarian Fund.

(b)

Calculated using the average shares method.

(c)

Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value for the year, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the year.

(d)

Less than $0.005 per share.

(e)

Annualized.

(f)

Effective October 1, 2011, the Adviser agreed to limit expenses at 1.20%. Prior to October 1, 2011, the expense cap in place was 1.30%.

The accompanying notes to the financial statements are an integral part of these financial statements.


38		www.cornercapfunds.com


Year Ended March 31, 2014	Year Ended March 31, 2013	Year Ended March 31, 2012	Year Ended March 31, 2011^(a)	Year Ended March 31, 2010


$10.88	$10.07	$10.41	$9.16	$5.28


0.12^(b)	0.10	0.08	0.02	(0.02)
2.97	0.81	(0.34)^(c)	1.23	3.91


3.09	0.91	(0.26)	1.25	3.89



(0.10)	(0.10)	(0.08)	–	(0.01)
–	–	–	–	–


(0.10)	(0.10)	(0.08)	–	(0.01)


0.00^(d)	0.00^(d)	0.00^(d)	0.00^(d)	0.00^(d)


$13.87	$10.88	$10.07	$10.41	$9.16


28.42%	9.16%	(2.42)%	13.65%	73.72%


$10,852	$8,163	$5,560	$3,955	$4,003


1.50%	1.50%	1.50%	1.50%	N/A
1.20%	1.20%	1.25%^(f)	1.38%	1.50%
0.98%	1.20%	0.98%	0.24%	(0.25)%

60%	43%	35%	136%	69%


Semi-Annual Report \| September 30, 2014		39

Notes to Financial Statements

September 30, 2014 (Unaudited)

1. ORGANIZATION

The CornerCap Group of Funds (the “Funds��) was organized on January 6, 1986 as a Massachusetts Business Trust and is registered under the Investment Company Act of 1940 as a diversified open-end management investment company.

The investment objective of the CornerCap Balanced Fund and CornerCap Small-Cap Value Fund is to obtain capital appreciation and current income, whereas the CornerCap Large/Mid-Cap Value Fund’s investment objective is to obtain capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Funds. These policies are in conformity with U.S. generally accepted accounting principles (“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), open-end funds, closed-end funds, 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 as of 4:15 p.m. Eastern time or, in the absence of recorded sales, at the average of readily available closing bid and asked prices 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 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 mean of the quoted bid and asked 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 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 Funds’ Board of Trustees and will be classified as Level 2 or 3 within the 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. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Withholding taxes on foreign dividends have been provided in accordance with the


40		www.cornercapfunds.com

Notes to Financial Statements

September 30, 2014 (Unaudited)

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.

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 six months ended September 30, 2014, 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. Tax returns for open years of 2010-2013 and as of and during the six months ended September 30, 2014, have incorporated no uncertain tax positions that require a provision for income taxes. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period, 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 U.S. generally accepted accounting principles. Distributions to shareholders are recorded on the ex-dividend date.

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;


Semi-Annual Report \| September 30, 2014		41

Notes to Financial Statements

September 30, 2014 (Unaudited)


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 the 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 the inputs used to value the Funds’ investments as of September 30, 2014:

CornerCap Balanced Fund:


	Valuation Inputs
Investments in Securities at Value^*	Level 1		Level 2		Level 3		Total

Common Stocks	$	15,423,643	$	–	$	–	$	15,423,643
Exchange Traded Funds		1,022,341		–		–		1,022,341
Corporate Bonds		–		6,611,194		–		6,611,194
Municipal Bonds		–		477,752		–		477,752
Certificates of Deposit		–		250,447		–		250,447
Short Term Investments		1,891,413		–		–		1,891,413

Total	$	18,337,397	$	7,339,393	$	–	$	25,676,790


CornerCap Small-Cap Value Fund:

	Valuation Inputs
Investments in Securities at Value^*	Level 1		Level 2		Level 3		Total

Common Stocks	$	58,553,500	$	–	$	–	$	58,553,500
Short Term Investments		2,415,380		–		–		2,415,380

Total	$	60,968,880	$	–	$	–	$	60,968,880


CornerCap Large/Mid-Cap Value Fund:

	Valuation Inputs
Investments in Securities at Value^*	Level 1		Level 2		Level 3		Total

Common Stocks	$	11,476,435	$	–	$	–	$	11,476,435
Short Term Investments		207,731		–		–		207,731

Total	$	11,684,166	$	–	$	–	$	11,684,166

* See Schedule of Investments for industry classification.

The Funds recognize transfers between levels as of the beginning of the annual period in which the transfer occurred. There were no transfers into or out of Levels 1 and 2 during the six months ended September 30, 2014.

For the six months ended September 30, 2014, 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.


42		www.cornercapfunds.com

Notes to Financial Statements

September 30, 2014 (Unaudited)

3. SHARES OF BENEFICIAL INTEREST

On September 30, 2014, 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. This is applicable to all redemptions (sales or exchanges) made within sixty days of initial purchase of shares of the applicable 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:

CornerCap Balanced Fund:


	Six Months Ended September 30, 2014 (Unaudited)		Six Months Ended September 30, 2014 (Unaudited)		Year Ended March 31, 2014		Year Ended March 31, 2014

	Shares		Value		Shares		Value

Shares Sold		138,914	$	2,197,598		202,958	$	3,043,461
Shares Issued in Reinvestment of Dividends		–		–		75,175		1,118,606

Total		138,914		2,197,598		278,133		4,162,067
Less Shares Redeemed		(50,523)		(798,196)		(137,286)		(2,044,543)

Net Increase		88,391	$	1,399,402		140,847	$	2,117,524


CornerCap Small-Cap Value Fund:

	Six Months Ended September 30, 2014 (Unaudited)		Six Months Ended September 30, 2014 (Unaudited)		Year Ended March 31, 2014		Year Ended March 31, 2014

	Shares		Value		Shares		Value

Shares Sold		488,492	$	7,802,571		1,292,968	$	19,084,847
Shares Issued in Reinvestment of Dividends		–		–		399,869		6,369,919

Total		488,492		7,802,571		1,692,837		25,454,766
Less Shares Redeemed		(164,154)		(2,596,938)		(680,126)		(10,549,476)

Net Increase		324,338	$	5,205,633		1,012,711	$	14,905,290


Semi-Annual Report \| September 30, 2014		43

Notes to Financial Statements

September 30, 2014 (Unaudited)

CornerCap Large/Mid-Cap Value Fund:


	Six Months Ended September 30, 2014 (Unaudited)		Six Months Ended September 30, 2014 (Unaudited)		Year Ended March 31, 2014		Year Ended March 31, 2014

	Shares		Value		Shares		Value

Shares Sold		116,322	$	1,657,459		270,147	$	3,304,555
Shares Issued in Reinvestment of Dividends		–		–		6,038		79,037

Total		116,322		1,657,459		276,185		3,383,592
Less Shares Redeemed		(37,109)		(533,615)		(243,894)		(3,071,677)

Net Increase		79,213	$	1,123,844		32,291	$	311,915

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 of net investment income, if any, are distributed annually. Distributions of net realized gains, if any, are declared at least once each year. The amount and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are finalized at fiscal year end. There were no distributions paid by the Funds for the six months ended September 30, 2014.

The tax character of distributions paid for the year ended March 31, 2014 were as follows:


	CornerCap Balanced Fund		CornerCap Small-Cap Value Fund		CornerCap Large/Mid-Cap Value Fund

Distributions Paid From:	2014		2014		2014

Ordinary income		$ 420,002	$	4,603,756	$	80,252

Long-term capital gains		700,002		1,786,741		–

Total		$ 1,120,004	$	6,390,497	$	80,252

As of March 31, 2014, the Funds had no capital loss carryforwards to reduce the Funds’ taxable income arising from future net realized gains on investments.

During the year ended March 31, 2013, the Fund utilized capital loss carryovers of:



CornerCap Large/Mid-Cap Value Fund	$	1,155,181


44		www.cornercapfunds.com

Notes to Financial Statements

September 30, 2014 (Unaudited)

The amount of net unrealized appreciation/(depreciation) and the cost of investment securities for tax purposes, including short-term securities at September 30, 2014, 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)	$	2,911,100	$	4,927,756	$	1,860,240
Gross unrealized depreciation (excess of tax cost over value)		(332,696)		(3,261,277)		(217,805)

Net unrealized appreciation	$	2,578,404	$	1,666,479	$	1,642,435

Cost of investments for income tax purposes	$	23,098,386	$	59,302,401	$	10,041,731

5. INVESTMENT ADVISORY AND OTHER RELATED PARTY TRANSACTIONS

A. Each of the Funds has an Investment Advisory Agreement with the Adviser, pursuant to which the Adviser receives an Advisory Fee from each Fund, computed daily and payable monthly, at an annual rate of 1.00% of the average daily net assets. Under the terms of each Advisory Agreement, the Adviser manages the Funds’ investments subject to the approval of the Board of Trustees. The amount of expenses paid to the Adviser are reflected in the Statement of Operations and the amount of current liability is reflected in the Statement of Assets and Liabilities.

In addition, each Fund and the Adviser have an Operating Services Agreement whereby the Adviser receives an Operating Services Fee, computed daily and payable monthly, at an annual rate of 0.30%, 0.50% and 0.50% of the average daily net assets of the CornerCap Balanced Fund, CornerCap Small-Cap Value Fund, and CornerCap Large/Mid-Cap Value Fund, respectively. The amounts of expenses paid to the Adviser as Operating Services Fees are reflected in the Statement of Operations and the amount of current liability is reflected in the Statement 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 interest, taxes, brokerage fees and commissions, acquired fund fees and expenses, and extraordinary expenses) as reflected in the following table:


Fund		Total Annual Fund Operating Expense Limitation

CornerCap Balanced Fund		1.10%
CornerCap Small-Cap Value Fund		1.30%
CornerCap Large/Mid-Cap Value Fund		1.20%

The contractual agreements cannot be terminated prior to August 1, 2015 without the Board of Trustees’ approval.


Semi-Annual Report \| September 30, 2014		45

Notes to Financial Statements

September 30, 2014 (Unaudited)

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) Fund Accounting and Administration Agreement with ALPS Fund Services, Inc. to provide day-to-day operational services to the Funds including, but not limited to, accounting, administrative, bookkeeping and pricing services; 2) Transfer Agency and Service Agreement with ALPS Fund Services, Inc. to provide day-to-day operational services to the Funds including, but not limited to, transfer agent, dividend distributing and bookkeeping services; and 3) Distribution Agreement with ALPS Distributors, Inc. to provide distribution services to the Funds. ALPS Distributors, Inc. serves as underwriter/ distributor of the Funds.

Certain officers and directors of the Funds are also officers and directors of the Adviser.

6. PURCHASES AND SALES OF SECURITIES

Investment transactions for the six months ended September 30, 2014, excluding U.S. government and agency securities and short-term investments, were as follows:


Fund	Cost of Investments Purchased		Proceeds From Investments Sold

CornerCap Balanced Fund		$ 5,998,194		$ 5,458,015
CornerCap Small-Cap Value Fund		32,470,626		27,224,792
CornerCap Large/Mid-Cap Value Fund		3,167,447		2,841,772

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 September 30, 2014, Charles Schwab & Co. held approximately 49.97%, 72.30% and 64.67% 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.


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Additional Information (Unaudited)

September 30, 2014

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 for serving as an officer or Trustee of the Funds. Effective November 14, 2013, each Independent Trustee receives $3,000 for each Trustees meeting attended in-person and $2,000 for each Trustees meeting attended by telephone. Members of the Audit Committee are paid $1,000 per Audit Committee meeting, and the Audit Committee Chairman is paid $2,000 per Audit Committee meeting. The Audit Committee will normally meet twice a year.

4. RENEWAL OF THE INVESTMENT ADVISORY AGREEMENTS

The Investment Company Act of 1940 requires that the Board of Trustees of the Funds (the “Board”), including all of the Trustees who are not “interested persons” of the Funds (“Independent Trustees”), annually review the Funds’ investment advisory agreements with Adviser (the “Agreements”) and consider whether or not to re-approve them for an additional year. At its meeting on May 15, 2014, the Board, including the Independent Trustees, conducted such a review and approved the continuation of the Funds’ Agreements. Legal counsel directed the Board to a memorandum legal counsel had prepared that summarized the trustees’ fiduciary duties and responsibilities in reviewing and approving the Agreements. Legal counsel discussed with the Trustees the types of information that should be reviewed by the Board and their responsibilities in making an informed decision regarding the approval of the continuance of the Agreements. Mr. Hackney, the CCO of Adviser, then reviewed with the Board a memorandum from Adviser addressed to the Trustees that provided information regarding Adviser and its business (the “Memorandum”).


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Additional Information (Unaudited)

September 30, 2014

In deciding on whether to approve the continuation of the Agreements, the Board considered numerous factors, including:

(i)

The Nature, Extent and Quality of the Services Provided by the Global Adviser. In this regard, the Board considered the responsibilities Adviser would have under each of the Agreements. The Board reviewed the operating and investment advisory services provided by Adviser to each Fund, including, without limitation, its investment advisory services since the Fund’s inception, its coordination of services for the Fund among the Fund’s service providers, its compliance procedures and practices, its efforts to promote the Fund and assist in its distribution and its provision of officers for the Trust. After reviewing the foregoing information and further information in Adviser’s Memorandum, the Board concluded that the nature, extent and quality of the services provided by Adviser were satisfactory and adequate for each of the Funds.

(ii)

The Investment Performance of the Funds and the Global Adviser. In this regard, the Board compared the performance of each Fund with the performance of its benchmark index, comparable funds with similar objectives and size managed by other investment advisers and comparable peer group indices. The Board also considered the consistency of Adviser’s management of the Funds with the Funds’ investment objectives and policies. After reviewing the Funds’ short- and long-term investment performance, Adviser’s experience managing the Funds, Adviser’s historical investment performance and other factors, the Board concluded that the investment performance of each Fund and Adviser was satisfactory.

(iii)

The Costs of the Services to be Provided and Profits to be Realized by the Global Adviser and its Affiliates from the Relationship with the Funds. In this regard, the Board considered the Adviser’s staffing, personnel and methods of operating; the Adviser’s compliance policies and procedures; the financial condition of the Adviser and the level of commitment to the Funds and the Adviser by the principals of the Adviser; the asset levels of the Funds; and the overall fees and expenses of the Funds. The Board also considered the Adviser’s past and future expected profitability with respect to the Funds. The Board then reviewed the fees and expenses of each Fund, and compared them to other funds similar in terms of the type of fund, the style of investment management, the size of the fund and the nature of the fund’s investment strategy, among other factors. Specifically, the Board determined that each Fund’s net expense ratio was lower than some of its comparable funds and higher than others. The Board also compared the fees charged by the Adviser to its separate account clients, noting that there were differences, but also noting the differences in the level of service the Adviser is required to provide to the Funds. Following this comparison and upon further consideration and discussion of the foregoing, the Board concluded that the fees to be paid to the Adviser by each Fund under the Agreements are appropriate and within the range of what would have been negotiated at arm’s length.

(iv)

The Extent to Which Economies of Scale Would be Realized as the Funds Grow and Whether Advisory Fee Levels Reflect These Economies of Scale for the Benefit of the Funds’ Investors. Following discussion of the Funds’ asset levels, expectations for growth, levels of fees and past adjustments to expense limitation agreements, the Board determined that each Fund’s fee arrangements were appropriate and within the range of what would have been negotiated at arm’s length, and that each Fund’s overall fee structure provided for savings and protection for shareholders at lower asset levels.


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Additional Information (Unaudited)

September 30, 2014

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 Funds 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, Age and Address	Position with 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 Age: 68 The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309	Trustee, President, Chief Financial Officer, and Treasurer since 1992	3	Chief Executive Officer, CornerCap Investment Counsel.	None


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Additional Information (Unaudited)

September 30, 2014

INDEPENDENT TRUSTEES


Name, Age and Address*	Position with 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 Age: 67	Trustee since 1992	3	President & CEO, Lex-Tek International, Inc. (a financial services and software consulting company), (1991-present); Managing Trustee, Boger-Owen FNON (2012- present); Business Manager, Owen Holdings, LLLP (2003-2013), Heathland Holdings, LLLP (2004- Present), and General Partner, Shawnee Meadow Holdings, LLLP (2004-Present) (real estate and related companies).	Director, Gray Television, Inc., since 1991

Laurin M. McSwain Age: 63	Trustee since 1994	3	Attorney, Lefkoff, Duncan, Grimes, McSwain & Hass, (2003- present).	None

Leslie W. Gates Age: 58	Trustee since 2006	3	Retired, 2005.	None

G. Harry Durity Age: 66	Trustee (1992- 2004, since 2010)	3	Director, Overland Solutions, Inc. (Private Company) since January 2009; Senior Advisor, Consultant, New Mountain Capital, LLC since May 2005; Director, Alexander Mann Solutions (Private Company).	Director, WebSite Pros, Inc.

*	All Independent Trustees can be contacted via the Funds at:

1290 Broadway, Suite 1100, Denver, CO 80203.


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Additional Information (Unaudited)

September 30, 2014

OFFICERS


Name, Age and Address	Position with 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 Age: 51 The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309	Vice President of the Funds since 1996	N/A	Vice President of the Funds, Portfolio Manager, CornerCap Investment Counsel.	N/A

John A. Hackney Age: 47 The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309	Chief Compliance Officer since 2004 and Secretary of the Funds since 1999	N/A	Chief Compliance Officer, CornerCap Investment Counsel.	N/A

Gene A. Hoots Age: 74 The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309	Vice President of the Funds since 1992	N/A	Vice President of the Funds and Chairman Emeritus of CornerCap Investment Counsel.	N/A


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Notes


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LOGO

Item 2. Code of Ethics.

Not applicable to this report.

Item 3. Audit Committee Financial Expert.

Not applicable to this report.

Item 4. Principal Accountant Fees and Services.

Not applicable to this report.

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrant.

Item 6. Investments.

(a)

The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR.

(b)

Not applicable to the registrant.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to registrant.

Item 10. Submission of Matters to Vote of Security Holders.

Not 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, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(b)		There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.


(a)(1)		Not applicable to this report.

(a)(2)		The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Ex.99.Cert.

(a)(3)		Not applicable.

(b)		A certification of the registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, is attached as Ex.99.906.Cert.

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.


CornerCap Group of Funds

By:		/s/ Thomas E. Quinn
		Thomas E. Quinn
		President (Principal Executive Officer)

Date:		December 8, 2014

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:		December 8, 2014

Cornercap Group Of Funds N-CSRSCertified semi-annual shareholder report (management investment company)